Mahindra satyam:Sell till Rs.85/-
Avoid this share till clear picture emanates. We got good shares like patni computers etc which are good now.
Unitech: sell
This share will be taken out of NIfty from tomorrow and heavy selling is expected. So those having unitech may sell it today.
It appears that this company is involved in CAG's indictment of 2G spectrum case. There is possibility of its indictment and also its plan to come out of telecom business through subsidiary is now resisted by CAG by indictment. Since Supreme court is also looking in this matter and hence this company may lose sizable amount.
Sesa Goa, Bajaj auto : Buy now
They will be included in Nifty from tomorrow.
Expect buying increases in these stocks.
Tata steel: Rs.644Buy till Rs.675/-
* Tata Steel UK signed a senior facility agreement with a syndicate of 13 banks for £3.53 billion term loan. The new financing structure is in two parts — a five-year loan of around £1.86 billion equivalent and a seven-year loan of $1.58 billion equivalent. The revolving credit facilities for working capital purposes have been increased to $1.08 billion and will have a tenor of five years.
Tata steel succeeded as per their plan to refinance around $4.5-5.5 billion (Pound sterling 3.53 B) while the gross debt is around $9.5 billion.
Indian and International steel price also may firm up at any time.
Buy software stocks:Buy Patni which is cheap around Rs.425/- Target Rs.450/-
In USA, Senate Republicans successfully blocked the passage of an anti-offshoring Bill that would have denied tax breaks to US companies which move jobs overseas.This is a positive signs and relief to software companies.“The Bill would have increased the costs of US enterprises and made them uncompetitive in global markets…It (the defeat of the Bill in US Senate) is a good development for the Indian IT industry too because regulatory pressures will not, in any way, impair the ability of global customers to freely use the global delivery model,” Mr Krishnakumar Natarajan, CEO and Managing Director of MindTree, said.
Reliance industries.(Rs.988) Target Rs.1050/-
There will be another round of talks between Reliance industries and BP for RIL’s exploration and production (E&P) deal. The plan initially was for RIL to club certain blocks and sell 30% to British Petroleum. In April 2010, the valuation of RIL blocks were seen at USD 30 billion. Now reliance wants to create funds for shale gas deals and hence may plan for selling some blocks for sizable amount.BP is expected to discuss RIL's interest in its exploration assets in North Africa, downstream assets in West and South Africa and its petrochemical operations in Vietnam (which BP is looking to exit). BP and RIL may even revive their talks of a possible “farming in” opportunity in RIL's flagship KG-D6 oilfield, according to sources familiar with the matter as per business standard press note.
The rights issue in East india hotels will help reliance to reduce its purchase value in EIH to almost market price of EIH. Entering in hotel business and expanding it globally is the vision of reliance thus expanding its growth laterally in many sectors to offset any weakness in any one sector. This is a good management practice and investors will be benefited by it.Expected good refining margins. Expected good half yearly earnings.The government is also planning to raise the price of state-administered, or APM, gas sold to sectors other than power and fertiliser by over 10 per cent to $5.25 per million British thermal unit (mBtu).The proposal to hike the price for non-power and fertiliser consumers to $5.75 from $4.75 per mBtu is awaiting approval at the highest level and the nod may come any day now.
IFCI: Buy Rs.62.20 Target short term Rs.70/-
Govt has appointed advisor for IFCI who will submit report before dec2010. IFCI will get bank licence. All companies including L&T, Reliance capital etc. are in the process of applying for bank licences and are awaiting for guidelines.
East India Hotels:Buy
The Royal battle begins. Now ITC also will subscribe to rights offer. So there will be good fight between reliance and ITC to take control of ITC in managment and it will benefit the investors.
Sterlite industries: Sell
Court directed sterlite industries to close their Tuticorin copper smelting unit and arrange for alternative employment or compensation to the workers and officers.This is the thrid setback for company in the recent happenings.
Bank, reality stocks- sell.
Rupee appreciation, expected reduction in growth targets will pull down software stock price. So better to exit now and re-enter at lower levels. Nifty may hover between 5900 to 6000 as domestic institutions and retail investors will step in and replace FII soon. Bringing back ELSS to all people in savings plan giving income tax benefit will help market to enthusiaze public to finance share market and replace FII thus removing the fear of RBI for exit of FIIs. Finance ministry may look into it.
Banks now have NPAs in dangerous levels in education loans, agri loans and to some extent in housing loans. Also there will be less housing loan business expected for reality and banking sector after revised Direct tax code comes in as no income tax benefit is given for repayment of principal of housing loans. Financial consultants,banks, reality companies and experts should recommend to Govt about bringing back the benefit under Sec.80C. Banks will feel the heat once many more private players enter into the areana of banking field like reliance capital, L&T and IFCI etc.
Bank of baroda, Union bank of india and dena bank will be infused with more capital by govt of india. Small quantities of Dena bank and UBI may be purchased at current price.
Suzlon: rs.53/- Buy small qty
Suzlon Energy, which holds 91 percent of REpower, is the world's third-largest wind turbine maker behind Denmark's Vestas and Spain's Gamesa. Now it plans to purchase the balance 9% also. Then there will be plan to sell 25% of it stake to bulk buyer in order to reduce its loans. Buy in small quantities .
Ayodhya verdict by High court will be released on 30.09.2010 at 3.30 pm i.e . after trading hours on Thursday. It appears that there will not be much commotion except small incidents here and there. All political parties agreed to keep peace and respect verdict of court.
No comments:
Post a Comment