Vedanta Ltd: Buy

CMP: Rs.64.4

Vedanta Ltd's June bid for the rest of Cairn India Ltd could look more rosy as the crude price moves northwards. The commodity price stability means the offer of one Vedanta Ltd share, plus preferred stock, for every Cairn share could gradually approach Cairn’s market price.

Mr.Agarwal has already taken several measure to cut costs and is in talks with banks, to restructure its debts. Anil Agarwal might even take the route of funneling cash up, through dividends or through intercompany loans as it has done in the past; as his back get pushed towards the wall, more and more. 

Moreover, in a recent interview to a financial portal, Anil Agarwal, Chairman of Vedanta Group said that although commodity prices are currently under pressure and impacting the company’s business, they will be out of this situation soon, adding that Vedanta is at a comfortable position on Zinc and crude oil prices are also close to bottoming out.

Vedanta Resources owns around 63% of Vedanta Ltd which, in turn, owns almost 65% and 60% of cash cows Hindustan Zinc and Cairn India.Vedanta Resources is a holding company and relies on cash flows from its various operational subsidiaries to service its obligations.

Global markets slumped at the start of the year on fears that a slowdown in China would spread to the rest of the world economy, while oil prices sank to 13-year lows.

Market turbulence sets the backdrop for a meeting of the U.S. Federal Reserve on Tuesday and Wednesday, while Bank of Japan policymakers gather on Jan. 28-29.

Last week, the European Central Bank signaled it could deliver further monetary stimulus, raising hopes that other central banks might take the same path.

The market rout meanwhile could throw the Fed off its course of gradual interest rate hikes.

"Attention will now turn to the U.S. Federal Reserve and the Bank of Japan's latest policy decisions later this week, with the main focus on the U.S. central bank in the wake of last month's historic decision to raise rates for the first time in nine years," said Michael Hewson, chief market analyst at CMC Markets.

Therefore, buy the shares of Vedanta Ltd at the  CMP of Rs.64.4 for short term targets of Rs.95-96. There is no need of putting any Stop Loss, as the stock is already avaialble at a dirt cheap rate.

DO YOU KNOW?

Photo: Maffat.com

Vedanta Ltd is a diversified natural resources company. The Company's International arm, Vedanta Resources Plc  is engaged in exploring, extracting and processing minerals and oil and gas. Its segments include Zinc-India, Zinc-International, Oil & Gas, Iron Ore, Copper-India/Australia, Copper-Zambia, Aluminum and Power. The Company produces zinc, lead, silver, copper, aluminum, iron ore, oil and gas and commercial power and has presence across India, Zambia, South Africa, Namibia, Ireland, Australia, Liberia, United Arab Emirates and Sri Lanka. The Company is also in the business of port operations in India. The Company's zinc operations are located in India, Namibia, South Africa and Ireland. The Company's iron ore operations are located in India and Liberia. The Company's copper smelting and mining operations are located across India, Australia and Zambia.

The promoters' holding in Vedanta Ltd, stood at 59.52 % while Institutions and Non-Institutions held 22.99 % and 9.91 % respectively.  

Vedanta Ltd is the only company who has resumed iron ore mining in Goa after the Supreme Court lifted its 2012 ban. The company resumed mining operation in the state in August this year.  

However, the rates at which iron ore is to be transported is the bone of contention between the mining companies and truckers. The issue started with the transportation of e-auctioned iron ore. The state government had sold a total of 7.4 million tonne of iron ore through 13 e-auctions out of the 16.56 million tonne identified for e-auction. The directorate of mines and geology had notified a rate of Rs.12.33 per tonne per km for the transportation of the e-auctioned ore on April 21. Around 1,300 trucks were engaged to transport e-auctioned and freshly mined ore from Codli to Amona/Surla by Vedanta Ltd.

Now, while, the Truck Owners Association is demanding a rate of Rs.17.63 per km, the mining firms, already reeling under the impact of a meltdown in iron ore prices and plethora of taxes, have offered to pay Rs.8 per km. 

According to Aniruddha Joshi head, corporate affairs, Vedanta Ltd, around 600 truck owners have already agreed to ply at the rate of Rs.8 per tonne per km. This brings some visibility, in the ongoing tussle between Vedanta Limited and truck owners transporting iron ore.

Therefore, the stock at the CMP of Rs.84.30, remains one of the best buys for the next 2-3 months perspective, with a SL of Rs.77 and a target price of Rs.109. 

You must have remembered that I recommended Pipavav Defence Ltd at Rs.38.75, as a sure shot BUY for 18 months  price-target of Rs.90; on 27 September, 2014 (amid all so-called-uproars and acquisitions of pumping up a loss-making-no-future-company).

I then asked all the long term investors to accumulate the scrip on all declines. After that Pipavav Defence Ltd, had almost doubled from the recommended rate, made a 52-week high of Rs.85 and is now trading at Rs.79.45. 

In a similar way, the long time investors will see  value additions, in their investments in Vedanta Ltd from the CMP of Rs.84.30, over a period of time. It is a must BUY, for all the long term investors.

Vedanta Ltd: Buy

CMP: Rs.87.35

"There may be light at the end of what has been a long, dark tunnel" for oil, says the International Energy Agency (IEA).

In its latest monthly market update, the global watchdog speculates prices may indeed have bottomed when international benchmark Brent crude fell to $27 a barrel early last month.

Since then, there have been signs of a natural attrition on supply and, crucially, a deal to freeze production at January levels, which could eventually rebalance a heavily oversupplied market.

It pointed to outages in Iraq, Nigeria and the United Arab Emirates that took 350,000 barrels a day off the market in February alone, reports the Financial Times. Iranian production post-sanctions is also rising more gradually than expected, adding 220,000 barrels last month compared to claims it would boost output by 500,000 immediately.

Overall, global supplies eased 180,000 barrels last month – and exports from high-cost exploration areas such as the US and South America could fall more sharply than expected this year. But the IEA also noted that stockpiles are at record levels and that it would take the remainder of this year for supply and demand, currently out of kilter to the tune of two million barrels a day, to reach equilibrium.

In short, prices will be more stable at current levels around $40 a barrel and will not plough depths of $20 or below as some analysts once predicted. But neither will they rise substantially until next year.

Meanwhile, Goldman Sachs said on Friday that crude oil prices will rise by an average of $5 per barrel in the second quarter; priices are expected to increase to between $25 to $45 per barrel, up from the $20 to $40 per barrel range in the present quarter.

"As we do not expect growth from OPEC and Russia after 2Q16, and given our expectation for resilient demand growth, our confidence that stocks will draw in 2016 if prices remain low is rising," it said in a report.

Oversupply has been a major contributor to the worst price slump since 2008.

A supply glut has increased and caused a build up in inventories that has placed greater downward pressure on oil prices in the past 18 months.

Prices fell around 75 percent from June 2014 when they were around $115 per barrel, to around $27 a barrel in January.

Goldman Sachs pointed to three significant factors for the anticipated price recovery, including low oil prices that would increase global demand that has been low with economic slowdowns in Asia and Europe and would eventually trim crude inventories.

But low oil prices need to be sustained in order to allow a rebalancing of supply and demand in the global oil market, it said.

Bottom line: A rise in crude oil prices is likely to trigger a rally in the commodity market, leading to a price recovery in Metals and Gold. Moreover, the US Fed is expected to keep the interest rate hike on hold, triggering speculative rally in Gold and Crude oil.

Besides, the union budget document said that the import duty on aluminium will be raised to 7.5% from 5% while the export duty on low-quality iron ore fines would be scrapped. This Duty Revision on iron ore and aluminium is expected to benefit Vedanta Ltd, the most as it is a big producer of both commodities.

The iron ore duty cuts will help miners liquidate stocks at a time when international prices are low," Mines Secretary Balvinder Kumar, who proposed the revisions, told Reuters.

Iron ore fines and lumps, with ferrous content of less than 58%, were earlier charged 10% and 30% export duty respectively. The move will help Vedanta compete in the world market which is undergoing one of the worst commodity meltdowns in recent history. 

The low grade iron ore, exported by Vedanta from Goa, has few takers in the country, which still relies of high quality to iron ore to produce steel. The steel industry in India still lacks technology to extract iron from low grade iron ore. 

Therefore, buy the shares of Vedanta Ltd (whose valuation will increase corresponding to the rise in the valuation of Cairns India Ltd, following the rise in crude oil prices) at Rs.87.35 for short term targets of Rs.95--104. SL--Rs.83.

Vedanta Ltd: Buy

CMP: Rs.91.70

The much talked about merger of Vedanta Ltd with Cairn India Ltd may happen in the next couple of months. 

Vedanta already has a 59.88 per cent stake in Cairn India. State-owned insurer Life Insurance Corp (LIC), Cairn India's second-largest minority shareholder, and which together with Cairn Energy controls about 19 per cent of the Indian company, too had earlier expressed reservations about the deal.

Vedanta has already pushed back the deadline for the merger to June quarter of 2016 as against the first quarter stated previously. 

Buy the shares of the company, for short term targets of Rs.97-104 and medium term target of Rs.125. 

Today's Call

1. Get of Tata Motors Ltd (Rs.462.50) as the scrip could slip to Rs.456-450. However, if it sustains above Rs.463, you can again enter.

2. The correction in Indian markets, may not be too deep, as it looks now. Buy Vedanta Ltd at Rs.252.10, T:Rs.261, SL: Rs.248. Analysts at JP Morgan remain overweight on Hindalco and Vedanta even though the stocks have materially outperformed the broader indexes over the last 12 months as the underlying commodity environment remains supportive and should allow balance sheets to de-lever.

3. Buy Inox Wind Ltd at Rs.169.30-170, T: Rs.210, SL: Rs.162. In a roughly INR-10-billion (USD 149m/EUR 141m) deal Leap Green Energy Pvt Ltd is to acquire the downstream wind power business of India's Inox Group, the Economic Times (ET) said, citing informed sources. An announcement of the acquisition agreement is coming, the sources have said.
India-based Leap Green, majority-owned by JPMorgan Chase & Co (NYSE:JPM), has about 450 MW of wind power capacity, while Inox Renewables is an independent power producer (IPP) with nearly 300 MW of wind farms in Rajasthan and Maharashtra, according to the report.



Buy Inox Wind; target of Rs 298: HDFC Securities. HDFC Securities' research report on Inox Wind

Inox Wind (IWL) reported yet another weak quarter as execution got impacted due to demonetisation. 200MW of WTGs were manufactured but could not be commissioned, which led to miss in estimates for the quarter. With improvement in execution, the mgmt expects 4QFY17E to be a disproportionately strong quarter.

Outlook
Our estimates factor in flattish volumes of 3.5GW/1GW for the industry/IWL. Still IWL would generate annual FCF of 5bn going ahead. Given a history of volatile quarterly performance we cut our target P/E multiple to 12x (earlier 15x) to arrive at Dec-18 TP of Rs 298/sh. Reiterate BUY.

Today's Calls

1. Buy Vedanta Ltd (or average) at Rs.251.15, T: Rs.257-261, SL: Rs.247.  According to MoneyControl.com:

Morgan Stanley has initiated coverage on Vedanta with an overweight call, citing the company’s potential to grow going forward.

The research firm feels that it is the fastest-growing aluminum and zinc company globally. “The balance sheet risk has subsided, which has positioned VEDL on par with global miners and better than local peers,” it said in a report. Additionally, it forecasts a 30 percent FCF CAGR for FY17-19.

Meanwhile, the company in February reported a 4.5-fold jump in third quarter consolidated profit at Rs 1,866 crore on year-on-year basis, boosted by operational performance and low base in year-ago period despite sharp rise in tax expenses.

Revenue during the quarter increased 29.6 percent to Rs 20,393 crore compared with Rs 15,731 crore in corresponding quarter of last fiscal, driven by metals business.

"Revenues in Q3 were driven by higher volumes at iron ore due to recommencement of operations, ramp-up of volumes at the aluminium and power businesses and higher volumes at Copper India and Zinc India. This was partially offset by lower volumes from oil & gas, and Zinc International due to closure of the Lisheen mine, in Q3 FY2016," the company said in its filing.

The company also outlined big plans to invest in Jharkhand last month. Keen to get a strong foothold in Jharkhand, Agarwal said that he had "big plans" for the state but initial foray will be with USD 1 billion investment that includes setting up a 1 million tonne steel plant.

Dubbing Jharkhand as "a diamond in the crown of the world", Vedanta Resources Group Chairman Anil Agarwal said the state is "full of potential" and Vedanta has big plans for it.

"There is a lot of potential...This (Jharkhand) is a real Australia in India with its huge natural resources. We have abig plan but we will start with the medium size or small size project...We intend to set up a one million tonne of steel plant," Agarwal told PTI in an interview.

2. Those who have entered in Inox Wind Ltd at around Rs.169.30-170, should book at least 80% of profits at Rs.185 and hold the rest with a SL of Rs.181. Reentering on dips is suggested in intra - day dips. However, SL at Rs.179 is a must, for fresh entries.

WINNING STROKES: THINK DIFFERENT:

Money Matters Financial Services Ltd hit the 2nd consecutive buyer freeze. The stock is probably headed much higher. It was recommended at Rs.60, and Rs.108, after which it twice reached Rs.122, hitting a high of Rs.131.

Country Club Ltd recommended today again at Rs.8.72m, after which the stock reached Rs.9.13, up more than 5%. The company is doing excellently well and it might come up with dividend for the shareholders. Buy it in bulk and enjoy.

Shree Asthavinayak Cine Vision Ltd was recommended yesterday at around Rs.3.95, the stock today reached Rs.4.20. The company came out with excellent set of numbers for the Q1FY12, as the company is coming up with a new release very soon. So, this is like  you fixed deposit. Buy it in bulk and enjoy.

Buy Reliance Media Works Ltd at Rs.88-89, T--Rs.133, SL--Rs.81. The total sales of the company for Q1FY12 came out to be Rs.198 Cr which is a rise of 42% as compared to the trailing quarter. The operating loss has reduced to Rs.19 Cr down 50% as compared to the trailing quarter. The operating loss of Q1FY12 includes, Rs.8 Cr incurred on account of start up expenses with respect to VXF and 3D Conversion outsourcing business, as against an order book position, of Rs.200 Cr annually. The quarter has shown significant improvement in terms of film releases as compared to the trailing quarter resulting in exhibiting revenues increasing by 52% over the trailing quarter. Starting from Q2, there are 23 world-wide releases scheduled till the end of 2011, which will have significant impact on both its top and bottomlines. The company has invested substantially in building infrastructure, skillsets, manpower, for leveraging the outsourcing opportunities. through its media BPO and the and the returns are expected to to flow from Q2 onwards. The current book value is annually Rs.200 Cr. The Reliance Media Works is one of the fast growing film and entertainment services company which operates BIG Cinema with over 550 screens, spread across India, US, Malaysia, Nepal and Netherland. Big Cinema has a slate of 7 new television shows in the pipeline to go on air in the near future, beginning with Kaun Banega Crorepati. It has received the approval for raising money to the tune of Rs.500 Cr in the form of rights issue. 

Positive global cues helped Indian shares register gains for the second day in a row. The BSE Sensex jumped 156.77 points or 0.96%, off 50.74 points from the day's high and up 285.29 points from the day's low. World stocks rose, with sentiment boosted by Chinese data and expectations Federal Reserve Chairman Ben Bernanke will signal readiness later this week to support struggling US economy. The Sensex has jumped 356.80 points or 2.21% in two sessions from a 14-1/2-month low of 16,141.67 on 19 August 2011.
Coming back to today's trade, the market breadth was strong. Index heavyweight Reliance Industries (RIL) edged higher to reclaim its title of India's biggest company in terms of market capitalisation. Coal India, though down, cut intraday losses triggered by reports of labour unions demanding a 100% jump in employee salaries.
Software pivotals gained after the National Association of Software and Services Companies, or Nasscom today, 23 August 2011, reiterated its estimate of the industry recording 16%-18% growth in export revenue this fiscal year, despite fears of economic troubles in the main outsourcing markets viz. the US and Europe. Bank stocks recovered on bargain hunting after recent steep decline. Fertiliser stocks advanced on a likely decontrol of urea prices.
The market lost ground soon after a firm start. A bout of volatility was witnessed as the key benchmark indices dropped to fresh intraday lows in morning trade. The market came off lows in mid-morning trade as most Asian shares rose. The market moved into positive zone in early afternoon trade as US index futures surged. The market extended gains in afternoon trade as European shares opened on a firm note. The market extended gains in mid-afternoon trade to strike fresh intraday high. A sudden fall pulled the market off the day's high later. The market soon regained strength.

The BSE Sensex jumped 156.77 points or 0.96% to settle at 16,498.47, its highest closing level since 17 August 2011. The index rose 207.51 points at the day's high of 16,549.21 in mid-afternoon trade. The Sensex lost 128.52 points at the day's low of 16,213.18 in mid-morning trade.

The S&P CNX Nifty rose 50.10 points or 1.02% to settle at 4,948.90, its highest closing level since 17 August 2011. The Nifty hit a high of 4,965.80 and a low of 4,863.80 in intraday trade.

The BSE Mid-Cap index underperformed the Sensex, gaining 0.95%. The BSE Small-Cap index outperformed the Sensex, rising 1.16%.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,824 shares rose and 988 shares declined. A total of 106 shares remained unchanged.

BSE clocked turnover of Rs 2239 crore, higher than Rs 2014.36 crore on Monday, 22 August 2011.

Among the 30-share Sensex pack, 19 gained while the rest fell.

Bajaj Auto (up 4.27%), Bhel (up 2.65%), Bharti Airtel (up 1.99%), Larsen & Toubro (up 1.82%) and Hindustan Unilever (up 1.34%), edged higher from the Sensex pack.

Index heavyweight Reliance Industries (RIL) rose 1.23% to Rs 765.55 after gyrating between Rs 747.85 and Rs 771.75. The stock had hit 52-week low of Rs 721.60 in intraday trade on Friday, 19 August 2011. RIL has received the government's formal approval to sell a 30% stake in 21 oil and gas production sharing contracts to BP PLC. Following the approval, Reliance and BP will work together to conclude the deal expeditiously, RIL said in a statement recently.

The initial proposal was for RIL to sell the stake in 23 blocks to BP for $7.2 billion plus another $1.8 billion linked to exploration success. However, the government cleared only 21 blocks and RIL had said it would continue to seek approval for the remaining two blocks.

RIL today, 23 August 2011, reclaimed its title as India's most valued firm. Last week Coal India, the world's largest coal miner by output, overtook RIL, claiming for a brief period the title of India's biggest company. Recovery in RIL shares early this week has helped RIL reclaim the title. At the end of Tuesday's (23 August 2011) trade, RIL commanded a market capitalisation of Rs 250661.74 crore while Coal India (CIL) had a market capitalisation of Rs 247538.15 crore.

Shares of Coal India lost 0.86% to Rs 391.90, off day's low of Rs 381.50. Labour unions of Coal India have reportedly demanded a 100% jump in employee salaries--a demand that would put the state-run entity under a severe strain. Coal India's annual employee cost stood at Rs 18201.45 crore for the year ended 31 March 2011 as per the company's consolidated financial statements. The major cost within the employee cost was salaries, wages and bonus at Rs 11706.42 crore. This amounted to 24.73% of the company's total expenditure of Rs 47332.08 crore.

Cairn India fell 0.92% to Rs 265.25, off day's low of Rs 261. The company's UK-based parent Cairn Energy PLC after market hours today said it agreed to accept India government conditions on royalty and cess on the Rajasthan oilfields so as to facilitate its stake sale in Cairn India (CIL) to Vedanta Resources. These two conditions are now with Cairn India shareholders for approval, with voting results due on 14 September 2011, Cairn Energy said.

Cairn Energy in the statement, said, Sale of 40% shareholding in Cairn India to Vedanta will be completed in two stages. The first tranche of 10%, which realised about $1.4 billion (was) completed (in) July 2011. The second tranche of 30%, approved by the government of India (GoI) in June, subject to certain conditions, will realise about $4 billion, it said.

Cairn Energy said the Mangala field in the Rajasthan block currently produces 125,000 barrels of oil per day. Development of Bhagyam oilfield is on track and is scheduled to commence production in the fourth quarter of 2011.

Cairn (Energy) is encouraged that the Vedanta transaction is moving toward completion. Following approval from the government of India, all parties are now working to satisfy the consents and conditions to complete the sale to Vedanta as soon as possible, Cairn Energy's CEO Simon Thomson said.

The sale of Cairn Energy's 40% stake will allow a return of substantial funds to shareholders and will also provide the group with the balance sheet strength and financial flexibility to explore new opportunities in line with its consistent strategy of seeking transformational growth, Thomson added.

State-run oil exploration giant ONGC declined 2.65% and state-run power generation major NTPC fell 2.03%.

Software pivotals rose after the National Association of Software and Services Companies, or Nasscom reiterated its estimate of the industry recording 16%-18% growth in export revenue this fiscal year, despite fears of economic troubles in the main outsourcing markets viz. the US and Europe. India's largest software services exporter TCS shot up 6.66% to Rs 979.50 and was the top gainer from the Sensex pack. The stock rose on bargain hunting after sliding 8.58% in the preceding three trading sessions.

We don't see any reasons to do it [revise outlook], Som Mittal, Nasscom president told reporters on the sidelines of an industry event today, 23 August 2011. We had factored in a little bit of uncertainty when we gave the 16%-18% growth outlook, he added. Nasscom, had in February forecast the industry's export revenue at $68 billion-$70 billion for the fiscal year ending March 2012.

India's second largest software services exporter Infosys rose 3.64% to Rs 2,274. The stock had slipped to a 52-week low of Rs 2,171.85 in intraday trade on Monday, 22 August 2011. Infosys Chief Executive S.D. Shibulal on Sunday, 21 August 2011, said clients may eventually end up having to cut their information technology budgets for 2011 if they continue to delay making spending decisions because of the economic troubles in the US and Europe. Shibulal, who took over as chief executive Sunday, said clients may also delay finalizing their technology budgets for 2012 to the first part of that year compared with the usual practice of doing it at the end of the previous year.

Infosys has been cautious on the outlook for IT outsourcing in the recent past, but it says it hasn't yet seen the need to cut its revenue outlook of $7.13 billion for the fiscal year through March 2012, a growth of 18%-20% from the previous year. There is definitely a delay in decision-making. But we're not seeing any immediate effect, Shibulal, a co-founder of Infosys, said.

India's third largest software services exporter Wipro rose 0.20% to Rs 333.15, off day's low of Rs 320.80. The stock had hit 52-week low of Rs 310.20 in intraday trade on Friday, 19 August 2011.

iGate Patni (up 4.22%), Tech Mahindra (up 3.67%), Rolta India (up 3.10%), HCL Technologies (up 2.51%), Oracle Financial Services Software (up 1.92%) and MphasiS (up 0.05%), were the other software sector shares that rose.

However, Mahindra Satyam fell 2.73% to Rs 65.85 after the Income Tax department slapped a tax demand of Rs 2113 crore on the firm after disallowing exemptions claimed by the company. The company announced this after market hours on Monday, 22 August 2011.

Bank stocks recovered on bargain hunting after a recent steep decline. India's second largest private sector bank by net profit HDFC Bank rose 0.93% to Rs 456.90. The bank recently hiked its lending rates by half a percentage point, in line with the rate hikes by other top lenders after the central bank raised its policy rate by the same margin in late July 2011. HDFC Bank also raised interest rates on some deposits by between 25 basis points and 75 basis points.

India's largest bank by net profit and branch network State Bank of India (SBI) rose 0.17% to Rs 2064.95, recovering from intraday low of Rs 2038. SBI Chairman Pratip Chaudhuri today, 23 August 2011, said the bank is likely to raise funds via a rights issue by end of the current fiscal year. The bank's consolidated net profit fell 25.34% to Rs 2512.47 crore on 20.3% rise in total income to Rs 39454.89 crore in Q1 June 2011 over Q1 June 2010. The bank announced Q1 results on 13 August 2011.

India's largest private sector bank by net profit ICICI Bank rose 0.13% to Rs 852, recovering from day's low of Rs 832.05. The bank recently raised its base rate upwards by 50 basis points to 10%. The bank had also announced an increase of 0.5% in its benchmark prime lending rate and in its Floating Reference Rate (FRR) for consumer loans (including home loans).

ICICI Bank, last week, said it will launch two new home loan products with interest rates fixed for one and two years--a reminder of the teaser loan schemes which became a banking sector trend in 2009-2010.

Yes Bank (up 5.05%), Bank of India (up 4.15%), Axis Bank (up 3.03%), IndusInd Bank (up 2.18%), Canara Bank (up 1.95%), Punjab National Bank (up 1.56%), IDBI Bank (up 1.20%), Bank of Baroda (up 0.84%) and Kotak Mahindra Bank (up 0.03%), were the other banking shares that edged higher.

India's largest private sector steel maker by sales Tata Steel rose 1.30% to Rs 475.75 on reports Tata Steel Thailand is scouting for iron ore mines in Indonesia and Thailand in order to turn around its mothballed mini blast furnace unit in Thailand.

India's largest private sector aluminium maker by sales Hindalco Industries rose 1.04% to Rs 145.75 on reports that the company is planning to raise around Rs 8000 crore of debt. The Rs 8000 crore debt will be used to part fund its Aditya Alumunium refinery project and a captive power plant in Orissa. With the volatility in the global markets and increasing borrowing costs locally, the company is evaluating various options to raise debt in the Indian and global markets, report said.

NMDC (up 3.10%), Nalco (up 1.69%), JSW Steel (up 1.34%), Welspun Corp (up 1.26%), Sesa Goa (up 1.14%), Jindal Saw (up 1.08%) and Jindal Steel & Power (up 0.77%), were the other metal and mining sector shares that edged higher.

Pharma major Cipla lost 2.59% to Rs 282.55. Recent reports indicated the country's drug regulator has sent show-cause notices to the company for selling drugs banned by the government.

Ipca Laboratories (down 2.18%), Ranbaxy Laboratories (down 1.60%), Dr Reddy's Laboratories (down 0.71%), Orchid Chemicals & Pharmaceuticals (down 0.63%), Lupin (down 0.40%) and Dishman Pharmaceuticals and Chemicals (down 0.15%), were the other pharmaceutical sector shares that edged lower.

Fertiliser stocks advanced on a likely decontrol of urea prices. Rashtriya Chemicals & Fertilisers (up 7.81%), Nagarjuna Fertilisers & Chemicals (up 5.08%), National Fertilizer (up 4.12%), GSFC (up 3.76%), Chambal Fertiliser & Chemicals (up 3.43%) and Zuari Industries (up 1.30%), surged.

A Group of Ministers on fertilizers recently approved a policy for decontrol of urea prices. Under the policy, manufacturers will be allowed to hike the rates for the key farm nutrient by up to 10% in the first year. The decision of the Group of Ministers, headed Finance Minister Pranab Mukherjee, on urea decontrol will now go to the Cabinet Committee on Economic Affairs for final approval. The government has already freed potassic and phosphoric fertilisers with the introduction of NBS with effect from April 2010.

Cals Refineries reported a highest volume of 8.18 crore shares on BSE. KS Oils (1.25 crore shares), Inventure Growth & Securities (62.68 lakh shares), Sujana Towers (41.08 lakh shares) and Shree Ashtavinayak Cine Vision (40.62 lakh shares), were the other shares that reported high volumes on BSE in that order.

Lovable Lingerie reported a highest turnover of Rs 100.82 crore on BSE. Inventure Growth & Securities (Rs 97.52 crore), State Bank of India (Rs 88.59 crore), Tata Motors (Rs 52.68 crore) and Reliance Industries (Rs 52.63 crore), were the other shares that reported high turnover on BSE in that order.

The market may remain volatile in the near term as traders rollover positions in the derivatives segment from the near-month August 2011 series to September 2011 series. The August 2011 derivatives contracts expire on Thursday, 25 August 2011.

Foreign institutional investors (FIIs) have pressed heavy sales this month amid the ongoing credit crisis in the euro zone. The sustained selling by foreign funds is a cause for concern for India Inc. Foreign portfolio inflow acts as a catalyst to private corporate capital expenditure in India. FII outflow in August 2011 totaled Rs 8898.90 crore (till 22 August 2011). FIIs had bought shares worth a net Rs 8030.10 crore in July 2011. FII inflow in calendar 2011 totaled Rs 1801.60 crore (till 22 August 2011).

As per a recent survey by a prominent investment bank, Corporate India will raise capital spending by tepid 10% in the year to March 2012 (FY 2012). Capital expenditure (capex) in FY 2012 will be concentrated on improving productivity rather than adding greenfield capacity, the investment bank said.

The Reserve Bank of India (RBI) said at first quarter 2011-2012 policy review late last month that that the uncertain global macro-economic environment poses a challenge for the Indian economy from the perspective of financing the current account deficit. In this context, the composition of capital flows remains a concern. In recent months, some shift in composition of capital flows towards foreign direct investment (FDI) has been observed, RBI said. This trend needs to be reinforced through policy actions to improve the quality of financing of the current account deficit, RBI said.

Indian firms relying on European and US markets are worried about a likely economic slowdown in the US and Europe. Bilateral trade between India and the US stood at $36.5 billion in 2010.

Commerce Minister Anand Sharma, last week, said India's discussions with the European Union (EU) and Canada to form free-trade agreements are in advance stages. India aims to boost bilateral trade with Canada to C$15 billion (US$15.3 billion) a year by 2015 from about C$4.2 billion in 2010.

With the 27-member EU, India had initiated discussions on the free-trade pact in 2007. The two sides originally hoped to conclude a wide-ranging deal by 2010 to boost trade to $237 billion annually by 2015. Their bilateral trade is currently worth about $92 billion.

Prime Minister Manmohan Singh, last week, said the government is aiming for 9% annual growth over a five-year period beginning 1 April 2012. It will be prudent to have a growth target, which would ensure achievement of the objective of sustained inclusive growth at a level which will also take into account the capabilities of the economy to achieve higher growth, Mr. Singh said, after a meeting of the planning commission to finalize details of the 12th five-year plan. If the global economic situation improves, India's growth can be 9.2% during the period, he added.

India sets five-year macroeconomic targets, and the planning commission's view is a part of planning for the next five-year period. The commission is chaired by the prime minister.

Reserve Bank of India (RBI) deputy governor Subir Gokarn, last week, said that the primary objective of monetary policy must be to keep inflation low and stable. The RBI is scheduled to undertake a mid-quarter policy review on 16 September 2011.

Food Minister K.V. Thomas, last week, said that the government plans to introduce a food security bill, which promises to give cheap food grains to 70% of the country's population, in the winter session of parliament. Thomas told reporters that the bill won't be introduced in the ongoing session of parliament, as earlier planned, because the consultation process with state governments and different ministries is still on. A ministerial panel had cleared the draft law last month.

Indian Meteorological Department (IMD) said on Thursday, 18 August 2011, that monsoon rains were 26% above normal in week to 17 August 2011, strengthening from a 14% above normal reading in the previous week. The June to September Southwest monsoon rains are crucial to crop production in 60% of the country that does not have adequate irrigation.

Total rainfall since the beginning of the season was 1% below normal until 17 August 2011, down from a deficit of 4% until last week. Good rains will help India achieve its target of increasing its food grains output to a record 245 million metric tonnes this crop year that started 1 July 2011. Good rains could help boost rural income and may help bring down food inflation. The rainfall has been normal in 65% of the country, while it has exceeded the normal in 23% and deficient in 12% until 17 August 2011.

The rainfall was excess to normal in oilseeds-growing western region, in the rice-growing eastern region as well as parts of the grain-bowl northern region and the north-western Rajasthan state. Plantings of key summer crops have been on the rise until 5 August, aided by favourable weather, including the main summer-sown rice crop. Rice acreage rose to 26.03 million hectares as against 24.47 million hectares during the same period last year. A news agency quoted IMD spokesman B.P. Yadav as saying on Thursday, 18 August 2011, that there could probably be a weakening of the monsoon rains again next week, especially in the northern region but showers may increase in central India and southern peninsula.

As anti-corruption activist Anna Hazare's fast entered eighth day, a worried Government called an all-party meeting for Wednesday, 23 August 2011, to discuss details of setting up an anti-corruption watchdog. Hazare, the 73-year-old Gandhian began his indefinite fast in police custody on 16 August 2011 demanding a strong Lokpal bill.

European stock markets were trading firm on Tuesday, 23 August 2011 after monthly data on Chinese factory output showed a slight improvement. The key benchmark indices in UK, France and Germany were up by between 1.28% to 1.83%.

The latest PMI readings for the euro zone signaled that manufacturing activity in the 17-nation region contracted slightly in August, while overall activity continued to grow at a slow pace. An unchanged composite PMI reading of 51.1 for August topped forecasts for a slide to 50.3.

The German manufacturing PMI also provided some relief for investors. A flash reading of the index for August was unchanged from July at 52 and beat the 50.8 consensus forecast. The reading for the services sector, however, fell to 50.4 from 52.9.
Asian stocks rose on Tuesday, 23 August 2011, with resource stocks and auto-makers among the best performers, as investors were encouraged by signs of relative improvement in the Chinese economy. The key benchmark indices in China, Taiwan, Japan, Indonesia, Hong Kong, South Korea and Singapore were up by between 1.06% to 3.86%.

HSBC's China flash Purchasing Managers' Index strengthened to a two-month high of 49.8 in August, edging up from 49.3 in July, but remaining marginally below the threshold that indicates expansion from contraction. The preliminary version of the PMI output index also showed improvement, rising to a two-month high of 49.4 in August from 48 in July. HSBC economists noted the headline PMI data was consistent with industrial production growth of about a 13% year on year and that the new export order index rose to a three-month high, which should alleviate concerns of an overly-rapid cooling in the Chinese economy.

Tuesday's gains for Asia came after sentiment recovered somewhat in the US on Monday, 22 August 2011, as US stocks snapped a three-day losing streak to notch mild gains. The Dow Jones Industrial Average finished up 37 points, or 0.34%, at 10854.65. The Standard & Poor's 500-stock index edged up 0.29 point, or 0.03%, to 1123.82. The Nasdaq Composite gained 3.54 points, or 0.15%, to 2345.38.
Investors are looking forward to Federal Reserve Chairman Ben Bernanke's speech at Jackson Hole on Friday, 26 August 2011, amid a debate and speculation over further monetary easing, and specifically, about any reference to the Fed's third round of quantitative easing, or QE3.

On Thursday, 25 August 2011, investors will scrutinize weekly US jobless claims data for signs of stabilization in the nation's labor market

Trading in US index futures indicated that the Dow could jump 133 points at the opening bell on Tuesday, 23 August 2011.

Market Mantra

Buy Hindustan Zinc Ltd at Rs.139---139.50, T---Rs.165-170, SL--Rs.131. Vedanta Resources Ltd's Rs.170 Billion offer to buy residual stakes in the company and Bharat Aluminium Co may get the government's approval could augur well for the company. 
Morning Call to the Paid Service Members and to those who are holding account my recommended brokerage house, ARSS Infrastructure Ltd  hits the buyer freeze. But why?
Pantaloon Retail Ltd has once again touched Rs.220. I  hope the other retail scrips like V2 Retail Ltd (CMP:Rs.14.05) will soon pick up steam. It is now almost certain that the bill on FDI in multi--brand retail will be passed at least in Lok Sabha, which is sufficient at least of now. 
My recommended Voltas Ltd touched Rs.111.20, in the opening trade. It is almost a debt free company and has been earlier recommended by a number of brokerage houses and advisory services.
Please buy Reliance Power Ltd at Rs.97.20--97.60, T---Rs.106--108, SL--Rs.94.CLICK HERE. 

RCom readies blueprint to revive telecom fortunes

[Editor: One thing I would like to mention here: don't depend on rating agencies and brokerage houses's "MOTIVATED UPGRADES", for your stock picking decisions!! You must remember, how some years back, Kotak Securities downgraded Reliance Industries Ltd only to see a spurt in the stock price. CLSA downgraded Vedanta Ltd, the stock is moving up everyday. Lot of downgrades were seen in Unitech Ltd (Rs.5.65), but the stock gave more than 50% return in the last few days. Recently, JSW Energy Ltd was seen downgraded to hold from buy, the stock touched Rs.85.95 yesterday. Also, how can we forget a series of downgrades by rating agencies on BHEL, the stock is now up more than 30%, from those prices. 

And at the end S P Tulsiyan said, after the results of Punjab National Bank Ltd, that he would not touch the PSBs in the next two quarters; only to recommend a buy on SBI a couple of weeks later - - pointing out how fickle are their decisions or how treacherous they can be while recommending stocks to the gullible investors/traders. 

Anyway, Reliance Communications Ltd has repeatedly said that it expects to cut down debt by 75% through merger of MTS, Aircel and sales of mobile towers. So, I feel there is no reason to be apprehensive about the company. Therefore, I again reiterate a buy on the shares of reliance communications Ltd at the CMP of Rs.47.20 for a target of Rs.72. This stock is to be bought and kept holding for some days; like your fixed deposits to get some wonderful returns. ]

MUMBAI, JUNE 7: Reliance Communications (RCom) may be a ‘trouble zone’ for the Anil Ambani-led Group, but the company has prepared a blueprint to revive its fortunes.

The plan includes sale of its tower assets, merging its wireless business with Aircel, and migrating from CDMA-based 2G services to 4G services. All of this is aimed at reducing its debt pile and expected to be completed within the next few months.

Tower asset sale

To start with, RCom has ended the exclusive nature of discussions with private equity firm Tillman Global Holdings LLC to sell its tower assets. The Anil Ambani-backed telecom firm has extended the discussions to at least two or three other interested bidders. In December, RCom had inked an agreement to sell its tower assets to private equity firms TPG and Tillman Global. The companies had entered into an exclusivity agreement till January 15. The exclusivity was then further extended.

However, differences over valuation forced RCom to look beyond Tillman. In order to improve the valuation, the tower deal will now happen only after RCom seals the merger of its wireless business with Aircel.

RCom wants to sell its 44,000 telecom towers to pare debt, which stands at ₹40,479 crore. The company hopes to get about ₹20,000-22,000 crore from the sale of tower assets. Of the balance ₹20,000 crore debt, RCom plans to transfer ₹14,000 crore to the newly created company post the merger with Aircel.

The merged entity will be owned jointly by RCom and Aircel. RCom will carve out its wireless mobile business and transfer the same to the new entity.

The enterprise business – which includes the international cable unit and the fixed line infrastructure within the country – will continue to be under RCom.

Post the merger with Aircel, expected to happen by end-June, the new entity is estimated to have a combined market share of 13 per cent in terms of the overall industry revenue.

Debt transfer

EBITDA of the new company is expected to be around ₹5,000-6,500 crore and the overall debt will be close to ₹28,000 crore. Aircel, which has nearly ₹18,000-20,000 crore of debt on its books, will transfer ₹14,000 crore to the new entity.

The balance debt will be settled by Aircel prior to the merger. Aircel has already sold its 4G spectrum to Airtel for nearly ₹4,000 crore. Once the merger with Aircel is done, RCom hopes to get better valuation for its tower assets riding on higher tenancy ratio and brighter prospects in the wireless business, especially 4G services.

RCom has already begun shutting down its CDMA-based 2G network by migrating subscribers to 4G services. Here too, the company is ensuring its focus on high-quality consumers.

End of CDMA services

Over the next few months, RCom will shut down CDMA networks across the country. The company has done a deal with Mukesh Ambani-backed Reliance Industries to share and trade 4G network and spectrum.

This, along with the spectrum from Aircel, will be enough for RCom’s wireless business to challenge Idea Cellular’s (the no. 3mobile operator in the country), according to senior company executives.

Analysts tracking the telecom sector said that though the plan looks good on paper, the actual outcome will depend on how soon Anil Ambani closes the sale of tower assets. “RCom’s tower asset has been on the block for a while. Fresh round of talks began in December but there seems to be a gap in expected valuation and what buyers are ready to offer. Hence the uncertainty continues,” said an analyst on conditions of anonymity.

But the company insists there are no delays. Senior executives said negotiations for the tower sale started only six months back, at a time when similar deals in the industry have taken 2-3 years.

Courtesy: The Hindu Business Line

Tit -  bits

Photo: Angel Broking 

How are you all? Hope you are doing fine. The Covid - 19 catastrophe has brought wanton sufferings to the people world wide and it will take some time for the things to be back to normal once again. Remain safe and healthy.

Anyway, when I'm writing this report, the Asian bourses were trading mixed, while SGX Nifty was seen at 9,060.50, up marginally by 25 points. Since some time the Nifty has been trading in 8800/9300 ranges,  which somewhat gives us the  support and resistance of the trading pattern of the  Indices. The trends of the  for the short, medium and long term remain bearish. Only a close above 9590 can take Nifty near the intermittent high of 9889, however there is more tendency to break 9000 and test 8800/8700/8420 ranges.

Havijg said that I have taken a bullish view on Commodoties and the price action in 2008 and 2020 has lot of similarities.  Stimulus package,  unleashed worldwide is the commodities' best friend.

The groundwork over the past few months has set the stage for a massive rally in the commodities asset class over the coming years.

The demand side factor for raw materials around the globe is a function of the population. Each quarter,  the world adds another twenty million people to its fold.

At the turn of this century, around six billion people were inhabiting the mother earth.  More head counts around the globe require more raw materials each day.

Moreover, commodities prices are highly sensitive to inflationary pressures. The world’s central banks and governments have unleashed a spate of liquidity in response to the global pandemic.

While the kneejerk reaction to Coronavirus was the formation of a deflationary spiral that took most commodities prices lower, the whiplash impact over the coming years may be just show the opposite trend.

Therefore, buy shares of good companies which are basically into commodities like SAIL (Rs.27.30), Vedanta Ltd (Rs.89.10), etc. But don't rush to buy immediately -- buy during the market dips. The other commodity names, with their support, resistance and targets will be provided to those who are trading through my brokerage house or are subscribers to my Premiun Information Services. 

Market Mantra: Nifty is looking bullish at 5255

The markets witnessed heavy selling in the late  hours of trade yesterday and the Nifty closed with a huge loss of 150 points. A flat opening was followed by a range bound move till noon. However, sudden selling emerged during second half dragging  down Nifty to a low of 5205 within two hours of trade.
Market is getting extremely volatile. A day of rise is followed by another day of fall and vice versa. Inability to cross 5400 and a fall below 5250 is a sign of weakness. Now, Nifty is finding support at 5150-5170 level. Market is giving wild movements.

I think the markets would close above 5250, in the Green as the Nifty (now at 5255) has turned bullish once again. 
The UPA government appeared to have staved off a fresh crisis on Thursday after the national auditor played down suggestions of a Rs 10.7-lakh crore revenue loss to the exchequer due to faulty allocation of coal mining blocks. A leaked draft report of the Comptroller and Auditor General (CAG) alleged that by not auctioning mines allotted to private and state-run firms, the government may have engendered revenue losses of truly epic proportions dwarfing all previous scams. But the Prime Minister's Office sprang into action immediately and released a letter from the auditor saying the information was half-baked and misleading. The contents of the draft, which covered allocation of coal blocks between 2004 and 2009, were reported by the leading newspaper in its Thursday edition. The story ignited an uproar in Parliament and hurt market sentiment. The newspapers should therefore exert extreme caution before publishing these kinds of market sensitive news, which has no strong foundation. I think off late the Times of India Group is becoming more sensational. 

Foreign institutional investors (FIIs) bought shares worth a net Rs.246.56 crore on Thursday, 22 March 2012, as per provisional data from the stock exchanges. FIIs have made substantial purchases of Indian stocks recently. Their inflow totaled Rs.7296.02 crore in ten trading sessions from 9 to 22 March 2012, as per provisional data from the stock exchanges.
Domestically, the incident in the parliament where the ruling government was made a dummy in terms of Railways fare hike shows evils of coalition politics and which is continually paralyzing the UPA government,  spooking our markets from time to time. In such circumstances, the investors/traders are suggested to stress more on short term play.
PLEASE FOCUS ON THE CONSTRUCTION AND BANKING COUNTERS.
Stocks to watch out for in today’s trading session are:
• (+VE) AVIATION: The civil aviation ministry has allowed Indian carriers to increase utilisation of foreign bilateral rights to 40% from April.
• (+VE) HINDUSTAN ZINC: Vedanta Group has offered 170 bln rupees to buy the government's balance stake in the company and Bharat Aluminium Co.
• (-VE) ABAN OFFSHORE: Holders of preference shares have agreed to extend redemption date by three years and increase coupon to 10%. I have seen some brokerages giving a sell on it.
In the morning the following call was already given to the Paid Service members: 

(i) Buy Jai Corp at Rs.92-93, T--Rs.97--99, SL --Rs.89.

(ii) You can accumulate IFCI Ltd above Rs.42, T--Rs.45, SL--Rs.39. The banking stocks are expected to do well in the coming days, so take positions.
(iii) Intra-day, buy Dish TV Ltd at Rs.56-57, T--Rs.59-62, SL--Rs.55. This is a brokerage call given today.
I think you got the news that Kohinoor Broadcasting Corporation Ltd is getting listed in the NSE shortly. Also, the channels have started, which are available in cable so bad days are over---only that we need to wait till the company comes out positive on the balance sheet.

Market Pulse

16-Mar-18: Fresh selling in index pivotals pulled the key benchmark indices to intraday low in early afternoon trade.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 276.96 points or 0.82% at 33,408.58. The Nifty 50 index was down 87.50 points or 0.84% at 10,272.65. Index heavyweights Reliance Industries (RIL), HDFC and ITC dropped. Metal and mining stocks declined.

Trading for the day began on a dull note as the key benchmark indices edged lower in early trade on negative Asian stocks. Stocks extended fall in morning trade. Key benchmark indices hovered near day's low in mid-morning trade.

The S&P BSE Mid-Cap index was down 0.27%. The S&P BSE Small-Cap index was down 0.13%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, turned negative from positive in early afternoon trade. On the BSE, 1,398 shares declined and 1,053 shares rose. A total of 142 shares were unchanged. Breadth was strong in early trade.

Tata Motors (down 2.56%), ONGC (down 2.18%) and Reliance Industries (down 1.49%) edged lower from the Sensex pack.

L&T fell 0.39%. The Railways Strategic Business Unit of L&T Construction's Transportation Infrastructure Business has signed a contract worth Rs 2864 crore with the Dedicated Freight Corridor Corporation of India (DFCCIL). The scope of work includes construction of single railway track including yards, 75 major & 588 minor bridges, 1 rail over bridge modification, 4 rail flyovers, 21 stations along with construction of all associated works. The announcement was made during market hours today, 16 March 2018.

Drug major Dr Reddy's Laboratories (DRL) fell 0.06%. DRL during market hours today, 16 March 2018 said that the company has launched levocetirizine dihydrochloride tablets USP, 5 mg, an over-the-counter therapeutic equivalent generic version of Xyzal allergy 24HR tablets, in the US market as approved by the US Food and Drug Administration (USFDA).

Levocetirizine dihydrochloride tablets are used for 24-hour relief of allergy symptoms such as watery eyes, runny nose, itching eyes/nose and sneezing. According to IRI sales data, Xyzal allergy tablets had sales of about $71 million in the US market for the 12-month period ended January 2018.

Metal and mining stocks declined. Vedanta (down 1.01%), JSW Steel (down 1.34%), Tata Steel (down 2.33%), Steel Authority of India (Sail) (down 1.86%), National Aluminium Company (down 1.52%), Hindustan Zinc (down 0.69%), Jindal Steel & Power (down 1.8%), Hindalco Industries (down 0.69%), NMDC (down 0.2%) and Hindustan Copper (down 2.02%) edged lower.

Copper edged higher in the global commodities market. High Grade Copper for May 2018 delivery was currently up 0.42% at $3.1405 per pound on the COMEX.

Neuland Laboratories rose 4.34% to Rs 732.50 after a domestic brokerage initiated coverage on the stock with a 'buy' rating and target price of Rs 1,065. The brokerage said in a report that Neuland Laboratories is likely to report a strong recovery in the next fiscal. It expects 19% compounded growth rate in revenue and 800 basis point margin expansion and seven times earnings over the fiscal 2018-2020, it added.

Indian Hotels Company was down 1.05% to Rs 131.60 after the company's promoters exchanged shares via bulk deals yesterday, 15 March 2018. Indian Hotels Company (IHCL) witnessed promoter holding rejig through open market transactions on 15 March 2018 on the BSE at an average price of Rs 130.40 per share. Sir Ratan Tata Trust sold 1.10 crore shares. Sir Dorabji Tata Trust offloaded 5.02 crore shares. Lady Tata Memorial Trust disposed of 1.77 crore shares. Tata Sons purchased 7.89 crore shares. Sir Ratan Tata Trust held 0.93%, Sir Dorabji Tata Trust 4.22%, Lady Tata Memorial Trust 1.49% and Tata Sons controlled 29.79% stake end December 2017.

Meanwhile, India's trade deficit for February 2018 was estimated at $11,979.21 million, 25.8% higher than the $9,521.73-million deficit reported during February 2017, government data released after market hours yesterday, 15 March 2018 showed. Exports during February 2018 stood at $25,834.36 million compared to $24,726.71 million during February 2017. Imports during February 2018 were pegged at $37,813.57 million, compared to $34,248.44 million in February 2017.

On the political front, Andhra Pradesh's Telugu Desam Party (TDP) reportedly pulled out of its alliance with the BJP-led NDA at the Centre. The N Chandrababu Naidu-led TDP, as well as other local parties, expressed their discontent over Narendra Modi led Union govt not giving special status to Andhra Pradesh.

Overseas, most Asian stocks fell as weak volumes in the US session overnight gave little impetus for traders ahead of next week's Federal Reserve meeting. US stocks ended mixed yesterday, 15 March 2018 as industrial and tech gains were offset by losses in the consumer and energy sector.

Today's Calls:

#The stock of 63 Moons Technologies Ltd recommended around Rs.85 and Rs.94, today made an intraday high of Rs.114.5. Book some profits and wait for dips to enter. Keep a SL at Rs.103.

#Central Bank Ltd which was recommended around Rs.67 and Rs.75, has hit Rs.87, intraday. You can book some profits and hold the rest with a SL at Rs.82.

#PAIR TRADE: Buy BANK_NIFTY FUTURES at around 24770 and Simultaneously SELL NIFTY FUTURE at around 10331; ENTRY SPREAD: 2.3955; SL SPREAD: 2.38; Target SPREAD: 2.4012; Duration: 1-2 days.

#Yesterday a Buy was given to the Premium Members in the counter of Lanco Infratech Ltd at around Rs.1.15 for short term targets of Rs.1.45 and Rs.1.82. The stock hit the upper circuits today and is now trading at this level. The company is expected to turnaround in FY19. The scrip of Lanco Infratech Ltd is likely to hit the Buyer Freeze today. 

#Intraday SELL IOC Ltd at around Rs.189, SL: Rs.191.25, T: Rs.185.5-183. Book FULL PROFIT at around Rs.184.80.

#Intraday short GOLD at around Rs.30245, SL above Rs. 30310, T: Rs.30140. A lower CPI does not augur well  for Gold Bulls.

#The stock of MCX Ltd recommended at around Rs.780, made a high of Rs.831.95, intraday. Those who have still not booked profit, kindly do the same and wait for dips to re-enter.

#The stock of RattanIndia Power Ltd (erstwhile Indiabulls Power) today made an intraday high of Rs.6.10. Those who are holding the same can accumulate on market dips, keeping a SL at Rs.5.60.

#Today, I will be recommending another small cap company from the Real Estate space to the Premium Group members. If you can online transfer the subscription amount, then I will instantly give you the name of the scrip; which I feel will cover up the subscription cost. 

~~ with inputs from Capital Market - Live News....