SATURDAY 20 SEP 2014 -- WEEKEND REPORT

A rally on Thursday, 18 September 2014 helped the key benchmark indices register marginal gains in the week ended Friday, 19 September 2014. The rally was triggered by the US Federal Reserve at the end of a two-day policy meeting on Wednesday, 17 September 2014, maintaining a commitment to keep US interest rates near zero for a "considerable time". The BSE Mid-Cap index underperformed the Sensex while the BSE Small-Cap index outperformed the Sensex during the week.
In the week ended Friday, 19 September 2014, the 30-share S&P BSE Sensex rose 29.38 points or 0.1% to 27,090.42. The 50-unit CNX Nifty rose 15.95 points or 0.19% to 8,121.45.
The S&P BSE Mid-Cap index fell 117.82 points or 1.18% to 9,865.26, underperforming the Sensex. The S&P BSE Small-Cap index rose 24.39 points or 0.21% to 11,191.18, outperforming the Sensex.
Trading for the week started on a weak note as key benchmark indices dropped on Monday, 15 September 2014 after data showing a muted 0.5% growth in industrial production in July 2014 raised doubts about economic recovery. The S&P BSE Sensex declined 244.48 points or 0.9% to settle at 26,816.56, its lowest closing level since 28 August 2014.
A broad based decline was witnessed on the bourses on Tuesday, 16 September 2014 as selling intensified during the latter part of the trading session. The S&P BSE Sensex lost 324.05 points or 1.21% to settle at 26,492.51, its lowest closing level since 26 August 2014.
Positive cues from world markets helped key equity benchmark indices in India register modest gains on Wednesday, 17 September 2014. The S&P BSE Sensex gained 138.78 points or 0.52% to settle at 26,631.29, its highest closing level since 15 September 2014.
Key indices jumped on Thursday, 18 September 2014 after the US Federal Reserve at the end of a two-day policy meeting on Wednesday, 17 September 2014, maintained a commitment to keep US interest rates near zero for a "considerable time". The S&P BSE Sensex garnered 480.92 points or 1.81% to settle at 27,112.21, its highest closing level since 9 September 2014.
Key benchmark indices witnessed a divergent trend on Friday, 19 September 2014 after swinging between positive and negative zone alternately in intraday trade. The S&P BSE Sensex fell 21.79 points or 0.08% to settle at 27,090.42, its lowest level since 17 September 2014.
Among the 30-share Sensex pack, 16 stocks gained, 13 declined and one remained unchanged in the week ended Friday, 19 September 2014.
ONGC (down 5.62%), Coal India (down 3.38%), L&T (down 2.75%), GAIL (India) (down 2.62%) and Hindustan Unilever (down 2.56%) edged lower from the Sensex pack.
Reliance Industries fell 2.07% to Rs 994.60. Reliance Jio Infocomm (Reliance Jio), a subsidiary of RIL and GTL Infrastructure on Thursday, 18 September 2014 announced the signing of a Master Services Agreement (MSA) for tower infrastructure sharing. The agreement with GTL Infra will help Reliance Jio accelerate the roll out of pan India next-generation voice and data services, Reliance Jio said.
IT stocks edged higher. Wipro gained 2.07%. Wipro after market hours on Monday, 15 September 2014 said that the company's joint-venture subsidiary, Wipro Arabia has entered into a strategic partnership with Saudi-based Saudi Electricity Company (SEC), the largest power utility company in the Middle East serving approximately 5 million customers in the Kingdom of Saudi Arabia (KSA).
Infosys rose 0.79% to Rs 3,701.45. Infosys on Friday, 19 September 2014, announced a global partnership with Huawei, a leading global information and communication technology (ICT) solution provider. Seperately, Infosys also announced the expansion of its partnership with Hitachi Data Systems (HDS) to bring next-generation infrastructure and data center transformation solutions to enterprises. Seperately, Infosys also announced the expansion of its decade-long partnership with Microsoft Corp. to help enterprises transform their business and tap opportunities in a cloud-first, mobile-first world.
Shares of major Tata group companies saw mixed trend. Global credit rating agency Moody's Investors Service on Thursday, 18 September 2014 revised upwards its ratings on major Tata group companies.
TCS rose 3.92% to Rs 2,708.05 after hitting record high of Rs 2,733.25 in intraday trade on Friday, 19 September 2014. Moody's has affirmed TCS' local currency issuer rating at A3/Stable.
Tata Motors rose 0.48% to Rs 519. Moody's Investors Service has upgraded corporate family ratings of Tata Motors to Ba2/Stable from Ba3/Stable. The ratings of Tata Motor's luxury car unit, Jaguar Land Rover Automotive plc has not been affected by the rating actions, Moody's said in a statement.
Tata Steel fell 1.28% to Rs 510.40. Moody's has upgraded Tata Steel's rating to Ba2 from Ba3, Tata Steel UK Holdings' rating was upgraded to B2 from B3.
Tata Power Company fell 1.62% to Rs 87.95. The company said after market hours on Thursday, 18 September 2014, that Moody's has upgraded the company's corporate family rating to Ba3/Stable from B1/Negative, and senior unsecured rating to Ba3/Stable from B2/Negative, thus no longer notching for subordination.
Upward ratings revision of Tata Group companies reflects agency's expectation of parental and systemic support in case of need, which has been exhibited both in the form of extraordinary financial support from Tata Sons, the ultimate parent, and ongoing support through their close association with the Tata brand, Moody's said on Thursday, 18 September 2014.
Bharat Heavy Electricals (Bhel) rose 2.85%. Mr. B. Prasada Rao, Chairman & Managing Director of Bhel while adressing to the shareholders at the 50th Annual General Meeting of the company on Friday, 19 September 2014, said that as the economy is expected to move at pre recession levels in near term, the capital expenditure cycle could kick off in a big way in next few quarters. This will improve business environment and the company will benefit from emerging opportunities. At the end of the year ended 31 March 2014, the total orders in hand for execution in year ending 31 March 2015 and beyond stood at Rs 101566 crore.
Pharma stocks gained. Dr Reddy's Laboratories gained 8.69% to Rs 3,218.40 after scaling a record high of Rs 3,240 in intraday trade on Friday, 19 September 2014.
Sun Pharmaceutical Industries rose 0.11%. Merck & Co. and Sun Pharmaceutical Industries through their respective subsidiaries after market hours on Wednesday, 17 September 2014 announced an exclusive worldwide licensing agreement for Merck's investigational therapeutic antibody candidate, tildrakizumab, (MK-3222), which is currently being evaluated in Phase 3 registration trials for the treatment of chronic plaque psoriasis, a skin ailment.
Cipla gained 2.49% to Rs 627.80 after scaling a record high of Rs 639.05 in intraday trade on Tuesday, 16 September 2014. The company after market hours on Thursday, 18 September 2014, announced that it has signed an agreement with Salix Pharmaceuticals, Inc., a US-based speciality pharmaceutical company.
Meanwhile, the government has capped the prices of 36 drugs, including those used to treat infections and diabetes to make essential medicines more affordable, an official at the National Pharmaceutical Pricing Authority (NPPA) was quoted as saying on Friday, 19 September 2014. The medicines join the 348 drugs deemed essential and that are therefore subject to price caps, covering up to 30% of the total drugs sold.
Shares of two-wheeler makers gained. Bajaj Auto rose 2.73% to Rs 2,410.35 after scaling a record high of Rs 2,426.90 in intraday trade on Friday, 19 September 2014.
Hero MotoCorp advanced 7.04% to Rs 2,951.05. The stock had scaled record high of Rs 3,080 in intraday trade on Thursday, 18 September 2014. Hero MotoCorp's Chief Executive Officer Pawan Munjal was quoted as saying that the motorcycle maker will enter the US and Europe by 2016. The company during the week said that it has entered into a Memorandum of Understanding (MOU) with the state government of Andhra Pradesh to set-up a manufacturing plant in Chittoor district of the state of Andhra Pradesh. The plant with an investment of about Rs 1600 crore will have a production capacity of around 1.8 million per annum.
Maruti Suzuki India rose 3.83% to Rs 3,084.95 after scaling record high of Rs 3,098.05 in intraday trade on Thursday, 18 September 2014. The company during the week said that its Manesar facility has crossed the 25 lakh production milestone this month. The company's twin facilities at Gurgaon and Manesar have together rolled out over 1.4 crore vehicles cumulatively, it added.
Bank stocks were mixed. HDFC Bank (up 0.53%) and ICICI Bank (up 0.35%) gained. Axis Bank fell 2.24%. State Bank of India (SBI) declined 2.17%.
Meanwhile, on the second day of Chinese President Xi Jinping's three-day visit to India, China and India on Thursday, 18 September 2014, announced that China will invest $20 billion in India over the next 5 years. The two Asian countries also agreed that specific measures to enhance market access for Indian companies in China will be expedited in agricultural and pharmaceutical products and for export of services.
Under a five year Trade and Economic Development Plan, China has also agreed to improve the trade balance between the two countries which is heavily skewed in China's favour. The two Asian countries agreed that specific measures to enhance market access for Indian companies in China will be expedited in agricultural and pharmaceutical products and for export of services. China will set up two industrial parks in India -- one in Gujarat and one in Maharashtra. India and China also agreed on specific steps to enhance cooperation in upgrading India's railways sector.
On macro front, the annual rate of inflation based on the monthly wholesale price index (WPI) decelerated to 3.74% in August 2014, from 5.19% in July 2014. The data was released on Monday, 15 September 2014. Data released by the government after trading hours on Friday, 12 September 2014, showed that the annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India eased to 7.8% in August 2014, from 7.96% July 2014. The rate of inflation based on the combined consumer food price indices (CFPI) for urban and rural India accelerated to 9.42% in August 2014, from 9.36% in July 2014, the data showed. Core CPI inflation which excludes food and energy prices, eased to 6.9% in August 2014, from 7.4% in July 2014.
Industrial production (IIP) growth moderated to 0.5% in July 2014, from a revised 3.9% growth recorded in June 2014, data released by the government after trading hours on Friday, 12 September 2014, showed.
India's merchandise exports registered a small increase of 2.35% at $26.95 billion in August 2014 over August 2013, data released by the government after trading hours on Monday, 15 September 2014, showed. Imports rose 2.08% at $37.79 billion in August 2014 over August 2013. The trade deficit increased to $10.83 billion in August 2014, from $10.68 billion in August 2013.
The US Federal Reserve at the end of a two-day policy meeting on Wednesday, 17 September 2014, maintained a commitment to keep US interest rates near zero for a "considerable time" after the bond-buying program ends even as its rate projections suggested some officials might have in mind a slightly more aggressive path of rate increases next year and in 2016 than previously thought. The Fed has kept its short-term interest rate near-zero since December 2008. In a statement after a two-day meeting, it announced a further $10 billion reduction in its monthly purchases, leaving the program on course to be shuttered next month.
Meanwhile, Scotland has chosen to stay in the United Kingdom, spurning independence in a historic referendum that had worried allies and investors, results showed on Friday, 19 September 2014. 55.3% of Scottish voters supported the "no" campaign against 44.7% who backed independence.

FRIDAY 19 SEP 2014

TODAYS BUY DELIVERY CALL --- BUY GALLANTT METAL (NSE-GALLANTT) AT 22-23 AND HOLD.

(1)        SITASHREE BOUGHT AT 8-9 CLOSED AT 11.55

(2)        INDNIPPON BOUGHT AT  315-324 CLOSED AT 331.45

(3)        INVENTURE BOUGHT AT 11-12 CLOSED AT 11.55

WE ARE HOLDING SITASHREE, INDNIPPON AND INVENTURE

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WEDNESDAY 17 SEP 2014

JUST SCROLL DOWN AND SEE. ON SEP 09 WE TOLD TO BUY PANAMA PETRO AT 265-250, YESTERDAY BOOKED PROFIT AT 315. OPENED AT 315 AND TRADED STRONGLY AT 316 TILL 10.15.TOTAL VOLUME WERE 15784 AND DELIVERED WERE 12619 (79.95 PERCENT DELIVERED)

WE ARE HOLDING SITASHREE, INDNIPPON AND INVENTURE

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TUESDAY 16 SEP 2014

JUST SCROLL DOWN AND SEE. ON SEP 09 WE TOLD TO BUY PANAMA PETRO AT 265-250, YESTERDAY ZOOMED TO CLOSE AT 310 .TODAY BOOK PROFIT, CALL CLOSED.

WE ARE HOLDING SITASHREE, INDNIPPON AND INVENTURE

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MONDAY 15 SEP 2014

HOLD OUR STOCKS. WE WILL POST NEW STOCK ON WEDNESDAY

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SAT 13 SEP 2014 -- WEEKEND REPORT

THE WEEK THAT WAS

BSE Mid-Cap, Small-Cap indices surge

After a rally which took them to record high at the onset of the week, key indices dropped for three days in a row and eked out small gains on the last trading session of the week. The net result was small weekly gains for the benchmark indices. The BSE Mid-Cap and Small-Cap indices surged as stock-specific buying continued. Gains for key indices were capped by concerns that foreign investors may slowdown their purchases of emerging market stocks if the US Federal Reserve hikes interest rates earlier than expected. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008. Crude oil prices dropped further and monsoon rains improved. Meanwhile, the government kicked off a big-bang divestment programme by announcing stake-sale in ONGC, Coal India and NHPC.

Key indices fell in three out of five trading sessions in the week just gone by.

For the week ended Friday, 12 September 2014, the S&P BSE Sensex rose 34.34 points or 0.12% to settle at 27,061.04. The 50-unit CNX Nifty gained 18.65 points or 0.23% to settle at 8,105.50.

The BSE Mid-Cap index jumped 3.25% and the BSE Small-Cap index surged 5.07%. Both these indices outperformed the Sensex.

Trading for the week started on a strong note with the indices scaling record high on Monday, 8 September 2014, as a steep slide in crude oil prices boosted sentiment. The S&P BSE Sensex rose 293.15 points or 1.08% to settle at 27,319.85 on that day, a record closing high for the index.

Key benchmark indices drifted lower on Tuesday, 9 September 2014, as the dollar rose against a basket of other major global currencies on speculation US interest rates may rise faster than investors anticipated. The S&P BSE Sensex shed 54.53 points or 0.2% to settle at 27,265.32 on that day, its lowest closing level since 5 September 2014.

Key benchmark indices dropped for the second day in a row on Wednesday, 10 September 2014, on speculation that US interest rates will rise sooner than expected. The S&P BSE Sensex fell 207.91 points or 0.76% to settle at 27,057.41 on that day, its lowest closing level since 5 September 2014.

Key benchmark indices dropped in volatile trade on Thursday, 11 September 2014, on concerns foreign investors may slowdown their purchases of emerging market stocks if the US Federal Reserve hikes interest rates earlier than expected. The S&P BSE Sensex fell 61.54 points or 0.23% to settle at 26,995.87 on that day, its lowest closing level since 1 September 2014.

Key benchmark indices eked out small gains on Friday, 12 September 2014. The S&P BSE Sensex rose 65.17 points or 0.24% to settle at 27,061.04.

From the 30-share Sensex pack, 17 stocks rose and the rest fell in the week ended Friday, 12 September 2014.

Bank stocks rose. ICICI Bank rose 1.07%. ICICI Bank, acting through its Dubai branch, priced an issuance of 5.5 year fixed rate notes of an aggregate principal amount of $500 million. The notes carry a coupon of 3.5% and were offered at an issue price of 99.653. The announcement was made after market hours on Thursday, 11 September 2014.

State Bank of India (SBI) jumped 4.38%. In response to media reports captioned "Indian bank branches face closure amid UK crackdown", State Bank of India during market hours on Friday, 12 September 2014, said that the Prudential Regulatory Authority's (PRA) final Supervisory Statement on international banks operating in the UK jurisdiction is not expected to have any material impact on SBI. SBI said that while SBI UK operations undertake retail banking activities above the prescribed de-minimis levels, PRA is expected to take a position with regard to each non-EEA (European Economic Area) branch only after evaluating the Home State Supervisory equivalence, resolvability etc. SBI UK operations will decide on their future banking model (branch or subsidiary) on receipt of the final evaluation from PRA, SBI said.

Cipla surged 9.91% to 612.55. The stock was the biggest gainer from the Sensex pack. The stock hit a record high of Rs 616 in intraday trade on Friday, 12 September 2014. Cipla after market hours on Monday, 8 September 2014, announced the commercial collaboration with UK-based S&D Pharma in the Czech Republic and Slovakia. This collaboration will enable Cipla to focus on its core therapy areas, while S&D Pharma will be the key partner for generics, the company said. Under the collaboration, Cipla will be driving its respiratory product portfolio in both Czech Republic and Slovakia through a Cipla owned sales force team, managed by Cipla commercial head. S&D Pharma will physically distribute all products, including respiratory products, and this portfolio will increase over the next few years, Cipla said.

Sun Pharmaceuticals Industries slumped 6.05%. The stock was the biggest loser from the Sensex pack. The company dropped on news reports that the company's manufacturing facility in Halol, Gujarat is undergoing a surprise inspection by the US Food and Drug Administration. In a clarification to the stock exchanges, Sun Pharma on Friday, 12 September 2014, said that its manufacturing facilities in India undergo many routine regulatory inspections from various countries as part of normal course of business, from time to time. Conduct of each of these inspections per se has no material impact, the company said. The company also said without elaborating that there is no material impact of the inspection of the Halol, Gujarat plant by the US Food and Drug Administration.

Tata Motors gained 2%. The company's British luxury car unit Jaguar Land Rover delivered a positive sales performance in August 2014. Jaguar Land Rover (JLR) on Wednesday, 10 September 2014, reported 9% increase in sales to 30,249 vehicles in August 2014 over August 2013.

Mahindra & Mahindra (M&M) dropped 1.49%. As per recent reports a domestic brokerage house cut the automaker to "reduce" from "add," and lowered the target price. The brokerage has reportedly cited high valuations as the key reason for the downgrade. The brokerage reportedly said M&M lost 13% market share in the utility vehicle segment over the past two years, describing that as a "significant loss". It said further re-rating of the stock would depend on curtailing subsidiary losses, improving consolidated returns on capital employed.

Maruti Suzuki India rose 3.01%. The company's chairman R C Bhargava was quoted as saying that the car maker is confident of double-digit growth in car sales this year. Bhargava was also quoted as saying in a newspaper interview that Maruti plans to invest Rs 4000 crore over the next five years in developing at least five new products at its India research & development (R&D) centre.

NTPC dropped 3.36%. NTPC said after market hours on Wednesday, 10 September 2014, that the board of directors of the company at its meeting held on 10 September 2014, accorded the investment approval to Tanda Super Thermal Power Project in the state of Uttar Pradesh at an appraised current estimated cost of Rs 9188.98 crore and Rammam Hydro Electric Project in the state of West Bengal at an appraised current estimated cost of Rs 1381.84 crore.

Larsen & Toubro (L&T) shed 1.89%. L&T during market hours on Friday, 12 September 2014, said that the company through its joint venture firm, L&T-MHPS Boilers, has secured an order worth Rs 1885 crore from NTPC. The contract includes setting up of two units of 660 megawatt each supercritical steam generators for Tanda Thermal Power Plant Stage-II on an engineering, procurement and construction (EPC) basis. The project is scheduled to be completed in 46 and 52 months for the respective units, L&T said.

Earlier, L&T said during market hours on 9 September 2014, that in a move to strengthen its design base in the infrastructure space, the company has acquired 50% of stake in L&T-Ramboll Consulting Engineers (LTR) hitherto held by Ramboll Denmark AS. With this acquisition, LTR now becomes a wholly owned subsidiary of L&T.

ONGC declined 3.02% to Rs 429.15. Coal India dropped 3.58% to Rs 357.95. Cabinet Committee on Economic Affairs on Wednesday, 10 September 2014, approved stake-sale in the ONGC, Coal India (CIL) and NHPC. The government will sell a 5% stake in ONGC, 10% in Coal India and 11.36% in NHPC. As on 30 June 2014, the government held 68.94% in ONGC, 89.65% in CIL and 85.96% in NHPC.

Index heavyweight and cigarette maker ITC rose 1.58%. As per recent reports the government is considering a proposal to ban the sale of loose cigarettes. A ban on sale of loose cigarettes will hit cigarette makers hard as 70% of retail sales of cigarettes take place in this form, according to reports. A ban on sale of loose cigarettes is among measures proposed by an expert panel set up by the health ministry, according to reports. Other suggestions include raising the age limit for consumption and increasing the fine for smoking in public spaces to Rs 20,000 from Rs 200, apart from making this a cognizable offence.

Most IT stocks edged lower. Infosys (down 1.55%) and Wipro (down 1.24%) declined.

Tata Consultancy Services (TCS) rose 0.34%. TCS on Monday, 8 September 2014, reportedly reiterated its revenue and margin outlook for year ending 31 March 2015 (FY 2015).

Metal and mining stocks gained. Hindalco Industries rose 0.51%. Tata Steel gained 0.79%.

Sesa Sterlite rose 3.36%. Sesa Sterlite's board of directors approved an enabling resolution for raising the company's borrowing limit from Rs 60000 crore to Rs 80000 crore. The announcement was made on 5 September 2014.

The company's board of directors also approved a proposal to issue convertible securities of up to Rs 6000 crore and private placement of non-convertible debentures and/or other debt securities with warrants upto Rs 4000 crore. The board has also approved creation of charge/mortgage over properties of the company for the purpose of the borrowing, Sesa Sterlite said.

FPIs have bought shares worth a net Rs 6665.49 crore in this month so far (till 11 September 2014). They have bought shares worth a net Rs 6327.19 crore from the secondary equity markets in this month so far.

Brent crude oil prices have seen a sharp downtrend in recent days. Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.

Meanwhile, a recent pick up in monsoon could ease concerns of food price inflation and boost sowing of Kharif crops. As per reports, the all-India rainfall deficit for the June-September monsoon season has narrowed to 11%, from 15% until the previous week.

The government has kicked off a big-bang divestment programme by announcing stake-sale in ONGC, Coal India and NHPC. The Cabinet Committee on Economic Affairs (CCEA) on Wednesday, 10 September 2014, approved disinvestment of 10% stake in Coal India, 5% stake in ONGC and disinvestment of 11.36% stake in NHPC. The government will raise about Rs 46000 crore from the divestment in these three PSU based the closing price of the shares of these three PSUs on Wednesday, 10 September 2014.

FRIDAY 12 SEP 2014

YESTERDAY WE TOLD TO BOOK PROFIT IN BEDMUTHA. THE MARKET WAS CHOPPY AND NEGATIVE BIAS BUT BEDMUTHA OPENED AT 21.20, MADE HIGH OF 22.65 AND CLOSED AT 21.80.VOLUME TRADED WERE 64662 AND DELIVERED SHARES WERE 54076 (83.63 % DELIVERY)

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WEDNESDAY 11 SEP 2014

POSITIONAL BUY INVENTURE GROWTH (NSE-INVENTURE) AT 11-12 WITH CLOSING BASIS STOP OF 10.
BOOK PROFIT IN BEDMUTHA BOUGHT ON 02/09/2014 AT 14-16, CLOSE PRICE 21.20

TUE 09 SEP 2014

POSITIONAL CALL BUY PANAMA PETRO ( NSE - PANAMAPET) AT 265-250 CLOSING BASIS STOP 225. We are holding sitashree, bedmutha, india nippon electricals.

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WEDNESDAY 03 SEP 2014

POSITIONAL CALL BUY INDIA NIPPON ELECTRICALS LTD (NSE-INDNIPPON) AT 324 - 315, CLOSING BASIS STOP LOSS OF 299.
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TUESDAY 02nd SEP 2014

PORTFOLIO STOCK BUY BEDMUTHA INDUSTRIES ( NSE_ BEDMUTHA) AT 14-16 AND SIT TIGHT
FATHIMA MONEY
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