Stay away from Bank stocks as NIM is reducing. CASA of banks also reducing and the cost
of Saving bank account is also on the rise due to compound rate of interest on daily basis.
Tata steel: Buy at Rs.580/- Target Rs.600/- in short term and Rs. 700/- in long term say 1 year.
Tata steel MD Mr.Nerurkar denied media reports that Tata Steel was considering sale of assets at its South African unit Tata Steel KZN. KZN has an annual capacity of 150,000 tonnes, produces high carbon ferrochrome and charge chrome. Tata steel wants to stabilize it further after turning the unit from loss making to profit making. Also it is in talks with various banks to raise nearly 5 billion loan to refinance debt for its unit Corus and there will not be any difficulty in getting good bargain in interest rate (LIBOR+3 to 4%).
East India Hotels: Buy for long term say within a year.
Even though ITC, which has 14.98 per cent stake in EIH, has repeatedly said it would not launch a hostile takeover, analysts believe it was a matter of time before ITC would have looked at gaining control. So there will be tug up war between two groups , reliance and ITC and stake holders of EIH will get benefit. The analysts also say that the succession plan at EIH (splitting the 46 per cent promoter stake among two sons of P R S Oberoi) would be thee opportune moment to launch an open offer for the one who attack first.
Now NIFTY may likely to fall soon and so exercise caution and choose stocks of low PE value.
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