The market has opened slightly lower on Tuesday.
The Nifty is in a trading range of 5500-6000, says Sudarshan Sukhani, technical analyst, on CNBC-TV18. And whenever an index is in a trading range, it hits both the levels, he explains. Since it has hit 5500, the next move should be towards 6000, he says. But if the Nifty fails to do so, then you can say that the momentum on the upside is being lost day by day, he adds. He expects weakness in the next series.
In the midcap banking space, Karnataka Bank, DhanaLakshmi Bank and Lakshmi Vilas Bank look good, as they can possibly be takeover targets in FY09, says Ambareesh Baliga of Karvy Stock Broking, on Zee Business.
Tuesday, November 27, 2007
Monday, November 26, 2007
Top Five Gainer's
Top Five Loser's
| Company | Price (Rs) | % Change |
| + Jindal St & Pwr | 14,121.45 | +16.74 |
| + National Alumini | 381.60 | +14.41 |
| + Balaji Telefilms Ltd | 376.30 | +12.46 |
| + HMT Ltd. | 92.00 | +9.98 |
| + BEML Ltd. | 1,775.70 | +9.26 |
Top Five Loser's
| + Hexaware Technologie | 73.70 | -17.00 |
| + National Fertili | 74.95 | -4.95 |
| + Indo Rama Synth. | 54.25 | -4.24 |
| + Chambal Fertilis | 62.15 | -3.49 |
| + D-Link India Ltd. | 95.35 | -3.25 |
The Asian markets closed in the positive and taking global cues the Indian market also closed on a good note. The Sensex closed at 19247, up 394 points while Nifty closed at 5731, up 123 points from the previous close.
The BSE Midcaps and Smallcaps Index both closed in the positive, up nearly 1.8%. The market was powered by the BSE Metal Index that was up by 6.3%. The BSE Power and BSE Bankex also reported good gains.
The market breadth was positive with advances at 818 against declines of 374 on the NSE. The Nifty gainers included Nalco, SAIL, HDFC Bank and Unitech and losers included RPL, Siemens, MTNL and Tata Motors.
The BSE Midcaps and Smallcaps Index both closed in the positive, up nearly 1.8%. The market was powered by the BSE Metal Index that was up by 6.3%. The BSE Power and BSE Bankex also reported good gains.
The market breadth was positive with advances at 818 against declines of 374 on the NSE. The Nifty gainers included Nalco, SAIL, HDFC Bank and Unitech and losers included RPL, Siemens, MTNL and Tata Motors.
The markets are trading extremely strong with impressive breadth. Capital goods, power, banking, realty and metals stocks are trading with significant gains.
At 11:00, the Sensex is up 444.23 points or 2.36% at 19297.10, and the Nifty up 137.85 points or 2.46% at 5746.45. About 2260 shares have advanced, 742 shares declined, and 74 shares are unchanged.
Top gainers on the Nifty are HDFC Bank at Rs 1,653 up 5.78%, Unitech at Rs 356.65 up 5.10% and HPCL at Rs 291.30 up 5.09%.
The only loser on the Nifty was Hero Honda at Rs 709 down 0.75%.
Most active shares on NSE are Reliance Petro at Rs 215.90 with 16,316,023 shares, Reliance at Rs 2,877.25 with 746,854 shares and Jindal Steel at Rs 12,790 with 113,515 shares.
BSE metal index was trading very strong with over 3.5% gain. major gainers in this counter were Jindal Steel, Nalco, Jindal Saw and Sterlite Inds.
In the realty space, the top gainers were Anant Raj Inds, Unitech, Ansal Properties and DLF.
IT stocks are attracting some attention on the back of marginal depreciation of rupee against dollar. Major gainers in the sector were TCS, Patni Comp, Satyam and Wipro.
Mkts open with gap up on strong global cues
The markets opened with huge gap up today on strong cues from the global markets. Heavy buying was seen in the banking, cap good, and power stocks in the early trade. Empee Distilleries got listed on the bourses today atRs 440 versus its issue price of Rs 400.
At 9:56 am, Sensex was up 376 points at 19230 and Nifty was up 113 points at 5722. Major gainers in the early trade were Rel Energy, RIL, L&T, ICICI Bank, NTPC, Unitech, HDFC Bank, DLF, ONGC, PNB, L&T and SBI.
Asian markets advanced today. Hong Kong's Hang Seng surged 3.25% or 863.33 points at 27,404.42, Japan's Nikkei gained 1.31% or 195.34 points at 15,084.11, Taiwan's Taiwan Weighted advanced 1.86% or 155.40 points at 8,497.60, Singapore's Straits Times rose 2.21% or 73.42 points at 3,399.31 and South Korea's Seoul Composite was up 3.06% or 54.20 points at 1,827.08
At 11:00, the Sensex is up 444.23 points or 2.36% at 19297.10, and the Nifty up 137.85 points or 2.46% at 5746.45. About 2260 shares have advanced, 742 shares declined, and 74 shares are unchanged.
Top gainers on the Nifty are HDFC Bank at Rs 1,653 up 5.78%, Unitech at Rs 356.65 up 5.10% and HPCL at Rs 291.30 up 5.09%.
The only loser on the Nifty was Hero Honda at Rs 709 down 0.75%.
Most active shares on NSE are Reliance Petro at Rs 215.90 with 16,316,023 shares, Reliance at Rs 2,877.25 with 746,854 shares and Jindal Steel at Rs 12,790 with 113,515 shares.
BSE metal index was trading very strong with over 3.5% gain. major gainers in this counter were Jindal Steel, Nalco, Jindal Saw and Sterlite Inds.
In the realty space, the top gainers were Anant Raj Inds, Unitech, Ansal Properties and DLF.
IT stocks are attracting some attention on the back of marginal depreciation of rupee against dollar. Major gainers in the sector were TCS, Patni Comp, Satyam and Wipro.
Mkts open with gap up on strong global cues
The markets opened with huge gap up today on strong cues from the global markets. Heavy buying was seen in the banking, cap good, and power stocks in the early trade. Empee Distilleries got listed on the bourses today atRs 440 versus its issue price of Rs 400.
At 9:56 am, Sensex was up 376 points at 19230 and Nifty was up 113 points at 5722. Major gainers in the early trade were Rel Energy, RIL, L&T, ICICI Bank, NTPC, Unitech, HDFC Bank, DLF, ONGC, PNB, L&T and SBI.
Asian markets advanced today. Hong Kong's Hang Seng surged 3.25% or 863.33 points at 27,404.42, Japan's Nikkei gained 1.31% or 195.34 points at 15,084.11, Taiwan's Taiwan Weighted advanced 1.86% or 155.40 points at 8,497.60, Singapore's Straits Times rose 2.21% or 73.42 points at 3,399.31 and South Korea's Seoul Composite was up 3.06% or 54.20 points at 1,827.08
The 2008 Sensex fair value is at 16,000, says a market expert from DSP Merrill Lynch, on CNBC-TV18. The market will consolidate before the final run into the bubble phase, he says. The brokerage's picks include BHEL, JP Associates, ICICI Bank and Bharti, he says. The brokerage has also given a sell rating to Tata Motors, RPL, Hindalco, MTNL and Pantaloon.
UBS has upgraded SBI to 'buy' and has given a target price of Rs 2,650, reports NDTV Profit. The stock is currently trading at Rs 2,285, up 1.5% on the BSE.
UBS has upgraded SBI to 'buy' and has given a target price of Rs 2,650, reports NDTV Profit. The stock is currently trading at Rs 2,285, up 1.5% on the BSE.
A gap up opening is expected for the market today, says an NDTV Profit Poll. But it may consolidate at higher levels. Nifty range for the day is expected to be 5600-5695. Stocks to watch today are RIL, SBI, Reliance Communications and ABB.
The market has opened on the higher side on Monday. Currently, the Sensex is at 19,256, up 403 points from the previous close. Nifty is at 5722, up 114 points.
The market has opened on the higher side on Monday. Currently, the Sensex is at 19,256, up 403 points from the previous close. Nifty is at 5722, up 114 points.
Sunday, November 25, 2007
Buy LIC Housing Finance (LICHF) CMP Rs 332 Target Rs 450
We believe the tide has turned in favour of housing finance companies like
LIC Housing Finance (LICHF) following the recent RBI guidelines to
commercial banks to slowdown their house financing activity, and the
favourable macro environment. LICHF, with its singular focus on financing
of homes, is set to witness a surge in both volumes and profitability. We
forecast a 28% CAGR in bottom line to Rs 455 crore over FY07-09E.
ƒ Growth in advances, margin expansion to enhance profitability
The RBI’s directive to commercial banks to reduce focus on housing
finance will benefit focussed players like LICHF. We expect the company
to post a healthy 22% CAGR in advances over FY07-FY09E. Already
during H1FY08, sanctions and disbursements grew by 48% and 25%
respectively. Further, its significant exposure to retail book will help in
registering healthy yields, which we believe will reach 10% levels in
FY08E, and 10.11% in FY09E.
New initiatives to boost fortunes in the long run
LICHF has unveiled a series of initiatives. It plans to foray into reverse
mortgage; has floated a wholly owned subsidiary, LICHF Cares Homes,
and has also inked a credit card venture with its parent. With a robust
infrastructure and distribution & network channel, we believe the
company is in a sweet spot to leverage on emerging opportunities.
Valuations
LICHF's net profit grew 33% to Rs 279.1 crore in FY07 from Rs 208.5
crore in FY06. Its ROA is expected to improve to 1.8% in FY08E from
1.4% in FY06. Assuming a ROE of 18%-19%, even after factoring in the
equity dilution, we arrive at a fair value of Rs 402 per share, 1.6x its
FY09E ABV. At the current price of Rs 374, the stock is trading at 1.5x its
FY09E ABV. LICHF also has a 39.3% stake in LIC MF AMC. As on Oct 31,
2007, the AMC's AUM amounted to Rs 16,245 crores. This translates into
Rs 46 per share of LICHF. Adding all these gives us a target price of Rs
448, an upside of 20% over a 12-15 month period. A private placement
of around Rs 500 crore, expected by end of December, may provide a
further trigger to the stock.
We believe the tide has turned in favour of housing finance companies like
LIC Housing Finance (LICHF) following the recent RBI guidelines to
commercial banks to slowdown their house financing activity, and the
favourable macro environment. LICHF, with its singular focus on financing
of homes, is set to witness a surge in both volumes and profitability. We
forecast a 28% CAGR in bottom line to Rs 455 crore over FY07-09E.
ƒ Growth in advances, margin expansion to enhance profitability
The RBI’s directive to commercial banks to reduce focus on housing
finance will benefit focussed players like LICHF. We expect the company
to post a healthy 22% CAGR in advances over FY07-FY09E. Already
during H1FY08, sanctions and disbursements grew by 48% and 25%
respectively. Further, its significant exposure to retail book will help in
registering healthy yields, which we believe will reach 10% levels in
FY08E, and 10.11% in FY09E.
New initiatives to boost fortunes in the long run
LICHF has unveiled a series of initiatives. It plans to foray into reverse
mortgage; has floated a wholly owned subsidiary, LICHF Cares Homes,
and has also inked a credit card venture with its parent. With a robust
infrastructure and distribution & network channel, we believe the
company is in a sweet spot to leverage on emerging opportunities.
Valuations
LICHF's net profit grew 33% to Rs 279.1 crore in FY07 from Rs 208.5
crore in FY06. Its ROA is expected to improve to 1.8% in FY08E from
1.4% in FY06. Assuming a ROE of 18%-19%, even after factoring in the
equity dilution, we arrive at a fair value of Rs 402 per share, 1.6x its
FY09E ABV. At the current price of Rs 374, the stock is trading at 1.5x its
FY09E ABV. LICHF also has a 39.3% stake in LIC MF AMC. As on Oct 31,
2007, the AMC's AUM amounted to Rs 16,245 crores. This translates into
Rs 46 per share of LICHF. Adding all these gives us a target price of Rs
448, an upside of 20% over a 12-15 month period. A private placement
of around Rs 500 crore, expected by end of December, may provide a
further trigger to the stock.
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