RESISTANCE
5149
5186
5221
SUPPORT
5122
5106
5069
5034
4976
4941
Strong Futures
This is list of 10 Strong Futures: Hind Zinc, Orchid Chem, Jindal Saw, Tata Motors, Ranbaxy, BPCL, Recltd, Canara Bank, BEL & McDowell-N.
Weak Futures
This is the list of 10 Weak Futures: Punj Lloyd, EKC, Purva, Sterling Biotech, Rel Infra, RCom, TTML, Power Grid, ICSA & Mphasis
Rally may continue up to 5149 level for time being.
Buy if touches 4976-4978 zone. Stop Loss at 4941-4943 zone.
On Positive Side, cross above 5184-5186 zone can take it up to 5219-5221 zone by non-stop. If crosses and sustains this zone then uptrend may continue.
Short-Term Investors:
Bullish Trend. Stop Loss at 4801.00.
Up Side Target at 5477.00.
Today's Expectation:
SGX NIFTY is trading at 5157.00 now. (08.44 AM IST).
BSE SENSEX:
Rally may continue up to 17228 level for time being.
Buy if touches 16766-16768 zone. Stop Loss at 16664-16666 zone.
On Positive Side, cross above 17330-17332 zone can take it up to 17432-17434 zone by non-stop. If crosses and sustains this zone then uptrend may continue.
Short-Term Investors:
Bullish Trend. Target at 18226.48.
Stop Loss at 16210.44.
POSITIONAL BUY
Buy UNITECH (NSE Cash)
If crosses & sustains above 90 level, then rally may continue up to 99 level by non-stop.
Buy TATA STEEL (NSE Cash)
If crosses & sustains above 589 level, then rally may continue up to 591 level.
Buy JET AIRWAYS (NSE Cash)
If crosses & sustains above 501 level, then rally may continue up to 502 level.
Buy YES BANK (NSE Cash)
If crosses & sustains above 272 level, then rally may continue up to 275 level.
 | 5122.00 | ( 1.77 %) | 89.30 |  |
| 1 | 2 | 3 | ||
| Resistance | 5155.28 | 5188.57 | 5246.78 | |
| Support | 5063.78 | 5005.57 | 4972.28 | |
 | 17198.27 | ( 1.61 %) | 272.05 | | |
| 1 | 2 | 3 | |||
| Resistance | 17295.33 | 17392.40 | 17566.33 | ||
| Support | 17024.33 | 16850.40 | 16753.33 | ||
| FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| FII | 01-Dec-2009 | 2951.44 | 2372.35 | 579.09 |
| DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| DII | 01-Dec-2009 | 1149.17 | 1274.24 | -125.07 |
Source: Bloomberg.
India's stocks rose for a second day as Morgan Stanley and Kotak Mahindra Bank Ltd. raised their growth estimates after Asia's third-largest economy expanded at the fastest pace in 1 1/2 years.
Reliance Industries Ltd., the nation's most valuable company, advanced 3.2 percent. Sterlite Industries (India) Ltd., India's largest copper producer, climbed 3.2 percent.
"India's GDP growth was way above market expectations and will prompt an upward revision of full year fiscal 2010 growth closer to 7 percent," said Ashutosh Datar, strategist at IIFL Ltd., which was ranked the third-best Indian brokerage in the Asiamoney poll this year. "The underlying economic momentum has picked up strongly and it will get stronger over the next two to three quarters as global economic recovery builds and domestic demand gets stronger."
The Bombay Stock Exchange's Sensitive Index, or Sensex, gained 272.05, or 1.6 percent, to 17,198.27. The S&P CNX Nifty Index on the National Stock Exchange rose 1.8 percent to 5,122. The BSE 200 Index added 1.8 percent to 2,143.47.
Morgan Stanley expects India's gross domestic product to expand 6.7 percent in the year ending March 2010, more than its earlier estimate of 6.4 percent, while Kotak increased its forecast to 6.9 percent from 6 percent.
Economic Growth
The nation's economy expanded by 7.9 percent last quarter from a year earlier, exceeding all estimates in a Bloomberg News survey of 22 economists, where the median forecast was for a 6.3 percent gain.
Reliance rose 3.2 percent to 1,098 rupees. Sterlite added 3.2 percent to 884.65 rupees.
Jet Airways (India) Ltd., the country's biggest airline by value, jumped 9.5 percent to 495.35 rupees as Indian Oil Corp. is set to lower jet fuel prices by 1.1 percent from today. Spicejet Ltd. gained 5.8 percent to 49.50 rupees.
Maruti Suzuki India Ltd., India's biggest carmaker, increased 1.9 percent to 1,587.20 rupees after November vehicle sales rose to 87,807 from 52,711 a year earlier.
Tata Motors Ltd. gained 6 percent to 703 rupees, its highest in almost two years. The truckmaker that owns Jaguar Land Rover was upgraded to "outperform" from "underperform" by Sanjay Doshi, an analyst at Macquarie Research.
Mahindra & Mahindra Ltd., India's biggest sport-utility vehicle maker, added 4.9 percent to 1,080.15 rupees after its November sales almost doubled to 22,587 vehicles from a year ago.
Jubilant Organosys Ltd., a maker of drugs and chemicals, rose 2.8 percent to 310.55 after Eli Lilly & Co. agreed to extend a research accord by five years.
Sterlite Technologies Ltd., a maker of fiber-optic cables, climbed 5 percent to 324.90 rupees, its highest in almost two years, after getting orders worth 6 billion rupees ($129 million).
Source: Reuters.
* Robust Nov auto sales, easing Dubai worry boost sentiment * Tata Motors races to 18-month high; Maruti gains 1.7 pct * Banks rise as rapid econ growth reaffirms strong outlook
Indian shares rose for a second day rallying 1.6 percent on Tuesday, as easing concerns about the Dubai debt crisis and robust November automobile sales boosted investor confidence on the growth outlook. The market, which had climbed 1.8 percent on Monday after a surprisingly strong 7.9 percent economic expansion in the September quarter, was also helped by higher world markets. Tata Motors (TAMO.BO: Quote, Profile, Research) leapt to an 18-month high of 708 rupees as investors bet the country's top truck maker that also produces cars would be a key beneficiary as the economy picks up steam. Leading car maker Maruti Suzuki (MRTI.BO: Quote, Profile, Research), majority owned by Japan's Suzuki Motor Corp (7269.T: Quote, Profile, Research), raced 1.7 percent to 1,588.15 rupees after it posted a 67 percent jump in November sales from a year earlier. Tata Motors, which is set to release November sales later, ended up 6 percent at 700.75 rupees. "We expect Tata Motors to benefit significantly from the revival in sales in the domestic and developed markets on the back of a macro economic recovery," Macquarie Capital Securities said in a report. The brokerage upgraded the stock to outperform from underperform, and set a 12-month target price of 789 rupees.
The 30-share BSE index .BSESN closed up 1.61 percent, or 272.05 points, at 17,198.27, with 27 of its components gaining. Following the strong September quarter expansion, the economy could grow 7 percent this fiscal year, with industrial output and services offsetting an expected decline in farm output, a top government official said. "The latest numbers do indicate that industry and services are growing very strongly," C. Rangarajan, chairman of the prime minister's Economic Advisory Council, told reporters in New Delhi. "This could go to offset to a very large extent the impact of the decline in agricultural production." Ratnesh Kumar, CEO of institutional equities at Anand Rathi, said the market was also helped by the realisation that India don't really have a direct impact from the Dubai crisis. The benchmark has rallied more than 78 percent in 2009, with foreign funds pumping in more than $15 billion. "Liquidity flows are strong from foreign funds and domestic insurance companies. But there is a valuation challenge, as earnings upgrade have not been as fast," said Kumar. India's manufacturing activity expanded for the eighth straight month in November but at its weakest pace since March due to a slowdown in growth of output, new business and employment, a survey showed.
The HSBC Markit Purchasing Managers' Index (PMI) INPMI=ECI, based on a survey of 500 companies, fell to 53 in November from 54.5 in October.
Energy giant Reliance Industries (RELI.BO: Quote, Profile, Research) rose 3.3 percent to 1,097.85 rupees, after it had slid 4.4 percent over two days last week when Dubai's debt woes hit the world markets. Banks logged strong gains, after the robust GDP data reaffirmed investor faith in the growth story for the sector, dealers said. Top lender State Bank of India (SBI.BO: Quote, Profile, Research) and rival ICICI Bank (ICBK.BO: Quote, Profile, Research) rose 2.4 percent and 2.6 percent respectively. Metal stocks moved up on firm metal prices, dealers said. Sterlite Industries (STRL.BO: Quote, Profile, Research) firmed 3.2 percent while Hindalco (HALC.BO: Quote, Profile, Research) climbed 2.9 percent. Leading motorcycle maker Hero Honda Motors (HROH.BO: Quote, Profile, Research) rose 0.3 percent after it said November sales grew 32 percent from a year earlier. Mahindra & Mahindra (MAHM.BO: Quote, Profile, Research), the No. 1 tractor and utility vehicle maker, jumped 4.8 percent to 1,078 rupees as its sales soared 96 percent. The stock was also supported by the company's deal with BAE Systems (BAES.L: Quote, Profile, Research) to create a land systems focused joint venture defence company in India.
In the broader market, gainers led losers in a ratio of 2.8:1 on relatively moderate volume of 400 million shares. The 50-share NSE index .NSEI closed up 1.8 percent at 5,122.
STOCKS THAT MOVED * Drug maker Cipla (CIPL.BO: Quote, Profile, Research) rose 2.7 percent to 328.70 rupees. The firm is in talks with a host of global drug makers, including Pfizer Inc (PFE.N: Quote, Profile, Research), to supply generic products, an executive said. * Essar Oil (ESRO.BO: Quote, Profile, Research) gained 2.7 percent to 134.90 rupees after the refiner and Royal Dutch Shell (RDSa.L: Quote, Profile, Research) (RDSb.L: Quote, Profile, Research) extended their exclusive talks for the Indian firm to buy the latter's three European refineries. [ID:nBOM537776] * UTV Software Communications (UTVS.BO: Quote, Profile, Research) firmed 4.2 percent to 473 rupees after the television content provider and broadcaster said its UTV Motion Pictures unit signed a clutch of syndication deals worth 950 million rupees, granting telecast rights on its movies produced in 2008 and 2009. * State Bank of Mysore (SBKM.BO: Quote, Profile, Research) rose 4.6 percent to 642.30 rupees, after the state-run lender said its board would consider on Dec. 4 a rights issue to raise up to 6 billion rupees. MAIN TOP 3 BY VOLUME * Unitech (UNTE.BO: Quote, Profile, Research) on 33.1 million shares * Suzlon Energy (SUZL.BO: Quote, Profile, Research) on 19 million shares * Jindal Cotex (JICL.BO: Quote, Profile, Research) on 7.7 million shares.
Source: India Infoline
Indian markets wiped out the 3.2% decline it witnessed in the past week as bulls cheered stronger than anticipated GDP growth data. Bulls dominated the proceedings on the bourses, extending gains to a second straight session.
Today's strong run could be attributed to firm cues from the global equity markets. Global stocks rose as the Bank of Japan introduced measures to revive lending and Asian economic data signaled a recovery. The yen fell the most in a month on speculation that the central bank will intervene to curb gains.
In addition, the accelerating monthly auto sales numbers lifted sentiment.
Interest rate sensitive stocks were in demand with the Realty and the Auto stocks among the top gainers. Pharma and Oil & Gas stocks also ended with smart gains. Mid-Cap and the Small-Cap stocks too attracted some buying.
The BSE Sensex surged 272 points at 17,198 after touching a high of 17,218 and a low of 16,967. The index opened at 17,218 against the previous close of 16,926. The NSE Nifty was up 89 points to shut shop at 5,122.
In Asia, the Nikkei in Japan was up 2.5%, while Australia's S&P/ASX ended higher by 0.4%. Shanghai SE Composite in China gained 1.2% and Hang Seng index in Hong Kong was up 1.3%.
In Europe, stocks were in the green. The FTSE in the UK was up 1.7%, The DAX in Germany was up 2% and the CAC 40 index in France gained 2%.
Coming back to India, among the BSE sectoral indices, the realty index was the top gainer, adding 6%, followed by the Auto index that was up 3% and the BSE Pharma index was up 2.5%.
The BSE Mid-Cap index gained 1.7% and the BSE Small-Cap index was up 2.1%.
Among the 30-components of Sensex, 27 stocks ended in the green and only HUL, BHEL and ONGC ended in the negative terrain. Among the major gainers were Tata Motors, Sun Pharma, DLF, M&M, Reliance Industries and Sterlite.
Outside the frontline indices, the big gainers in the broader market were Jet Airways, JP Hydro, Yes Bank, Moser Baer and United Phos. On the other hand, losers included Jain Irrigation, Shriram Transport and Marico.
Stocks like Kiri Dyes, Omnitech, Ksera sera, Deep Industries and Noida Toll Bridge were among the other notable gainers.
Mahindra & Mahindra sold 22,587 vehicles in November, compared with 11,515 registering a growth of 96% on a yoy basis. Shares of M&M gained by 5% to Rs1078, the scrip opened at Rs1036 it touched an intra-day high of Rs1090 and a low of Rs1035 and has recorded volumes of over 0.25mn shares on BSE.
Maruti Suzuki sold a total of 87,807 vehicles in November 2009. This includes 11,448 units of exports. The company had sold 47,704 vehicles in the domestic market in November 2008. November 2008 was exceptionally low sales month, due to impact of economic slowdown.
The 60.1% domestic sales growth in November 2009 is calculated on a low base of November 2008 when the industry was in the midst of worst ever slowdown.
The stock gained 1.7% to Rs1588. It opened at Rs1580 hitting an intra-day high of Rs1608 and intra-day low of Rs1568 recording volumes of 0.17mn on BSE.
TVS Motor posted 23% growth in November 2009, registering total two wheeler sales of 120,844 units against 98,402 units in the corresponding period of the previous year.
Domestic sales of the company witnessed a quantum increase in sales positing growth of 38% recording 106,836 units in November 2009 as against 77,491 in the corresponding period of the previous year.
The stock gained 0.5% to Rs57.45. It opened at Rs58 hitting an intra-day high of Rs58.5 and intra-day low of Rs57 recording volumes of 0.28mn on BSE.
Sterlite Technologies received over Rs6bn in new contracts for its telecom and power products, from prominent incumbents in India and Africa.
Based on the delivery schedules required by its clients, over 30% of the cumulative contract value would be executed within FY10 and the balance within H1 FY11. The total order book of the company stands at ~Rs20.50bn as on November 30, 2009.
Shares of Sterlite Technologies shot up by over 5% to Rs326. The scrip opened at Rs310 it touched an intra-day high of Rs334 and a low of Rs310 and recorded volumes of over 0.4mn shares on BSE.
Peninsula Land secured a receipt of Rs2.75bn from Alok Realtors Private Limited in connection with sale of 6.41 lacs sq. ft. at Peninsula Business Park. The Company has received a further sum of Rs1.6bn from Alok Realtors Private Limited for the said sale at Peninsula Business Park.
Till date, Peninsula Land Limited has received a sum of Rs6.25bn against the total deal consideration of Rs11bn. As on date, the total cash equivalent with Peninsula Land Limited is Rs6.85bn.
Shares of Peninsula Land gained by 4.5% to Rs81. The scrip opened at Rs78.8 it touched an intra-day high of Rs82.65 and a low of Rs78.50 and recorded volumes of over 0.17mn shares on BSE.
Jubilant Organosys, through its subsidiary Jubilant Biosys in Bangalore announced that its 4 year old research collaboration with Eli Lilly has successfully delivered multiple discovery milestone and pre-clinical candidates, resulting in a 5 year extension and expanded portfolio collaboration.
Under the terms of the new 5 year agreement Jubilant will receive research funding and success-based discovery and development milestones.
Shares of Jubilant Org gained 3% to Rs310. The scrip opened at Rs305 it touched an intra-day high of Rs317 and a low of Rs298 and recorded volumes of over 0.35mn shares on BSE.
Source: Kotak Securities
Indian market ended the day with good gains after exhibiting firm trading for through out of trading session, helped by better-than-expected GDP data for the quarter and robust November sales from leading auto makers. The benchmark indices rallied sharply during final trading mirroring rise in the Asian markets along with positive European stocks following ease in the Dubai debt crisis after Dubai world said it would try to restructure about $26 billion of its debt. US index futures also contributed to the upward journey. Optimistic sentiment lifted also on Japan Central Bank's new steps to boost the economy. The bank declared that it will set aside 10 trillion yen ($115 billion), in short-term loans to commercial banks to boost liquidity. The loans will carry a fixed interest rate of 0.1%. In domestic arena, India's manufacturing activity reported increase for the eighth successive month in November. The BSE Sensex ended around 17,200 level and NSE Nifty closed above 5,100 mark.
Market opened on pleasant note tracking favorable global cues. The US markets closed with moderate gains on Monday. Market managed to recover after spending the afternoon trading with modest losses after Dubai world said it would try to restructure about $26 billion of its debt. Further, Indian stocks continued to march northward as attitudes all over the world were strong. The sentiments remained optimistic today led by easing in the Dubai debt cries. Bulls were on roll also on higher European stocks. During final trading hours, market touched the highest level and closed the day with decent gains on significant buying over the ground. From the sectoral front, investors on-loaded positions across the sectors. Besides, Realty, Auto, Pharma, Oil & Gas, Bank, Metal, and PSU stocks were major gainers. BSE Midcap and Smallcap stocks also remained in buyers' radar
Among the Sensex pack 27 stocks ended in green territory and 3 in red. The market breadth indicating the overall health of the market remained positive as 2031 stocks closed in green while 725 stocks closed in red and 74 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 272.05 points or (1.61%) at 17,198.27 and NSE Nifty ended up by 89.30 points or (1.77%) at 5,122. BSE Mid Caps and Small Caps closed with gains of 113.29 and 161.98 points at 6,528.76 and 7,684.96 respectively. The BSE Sensex touched intraday high of 17,218.46 and intraday low of 16,947.46.
Gainers from the BSE Sensex pack are Tata Motors (6.03%), Sun Pharma (5.62%), DLF Ltd (5.46%), M&M Ltd (4.84%), Reliance Industries (3.30%), Sterlite Industries (3.19%), Reliance Infra (3.10%), Hindalco (2.93%), RCom (2.82%), ICICI Bank (2.60%), SBI (2.41%), Maruti Suzuki (1.69%), JP Associates (1.53%), Bharti Airtel (1.52%) and HDFC (1.52%).
Losers from the BSE Sensex pack are HUL (1.95%), BHEL (0.64%) and ONGC Ltd (0.21%).
India''s manufacturing activity expanded for the eighth successive month in November. However, the speed is weakest since March due to a slowdown in growth of output, new business and employment, according to a survey. The HSBC Markit Purchasing Managers'' Index (PMI), based on a survey of 500 companies, dropped to 53 in November, as against 54.5 in October. A reading above 50 means activity expanded during the month.
On the global markets front, the Asian markets that opened before the Indian market, ended higher led by rally in Japanese stocks on Japan Central Bank's new steps to boost the economy. Shanghai Composite, Hang Seng, Nikkei 225, Singapore's Straits Times and Seoul Composite ended up by 40.06, 291.65, 226.65, 38.83 and 14.12 points at 3,235.36, 22,113.15, 9,572.20, 2,770.95 and 1,569.72 respectively.
European markets, which opened after the Indian market, are trading in green. In Paris the CAC 40 is trading with gain of 73.38 points at 3,753.53, in Frankfurt DAX index is trading up by 114.35 points at 5,740.30 and in London FTSE 100 is up by 94.04 points at 5,284.72.
The BSE REALTY index was at 3,886.45 up by 226.00 points or by (6.17%). The main gainers were Unitech up by (11.78%) at Rs.88.75, Dlf up by (5.46%) at Rs.370.8, Peninsula Land up by (4.69%) at Rs.81.45, Hdil up by (4.61%) at Rs.340.1, Indiabulls Real Est up by (3.72%) at Rs.213.5.
The BSE AUTO index was at 7,220.24 up by 203.58 points or by (2.9%). The main gainers were Tata Motors up by (6.03%) at Rs.700.75, M&M Ltd up by (4.84%) at Rs.1078, Bajaj Auto up by (4.34%) at Rs.1637.55, Bharat Forge up by (3.99%) at Rs.274.85, MRF up by (2.21%) at Rs.6095.05.
The BSE HC index was at 4,889.06 up by 121.65 points or by (2.55%). The main gainers were Sun Pharma up by (5.62%) at Rs.1538.8, Orchid Chem up by (4.98%) at Rs.202.3, Glenmark Pharma up by (4.88%) at Rs.242.65, Sun Pharma Adv up by (4.4%) at Rs.85.35, Opto Circuits up by (4.16%) at Rs.213.95.
The BSE OIL&GAS index was at 10,520.64 up by 237.89 points or by (2.31%). The main gainers were Aban Offshore up by (4.99%) at Rs.1325.4, RNRL up by (4.19%) at Rs.70.85, Indian Oil Corp up by (4.06%) at Rs.301, Ril up by (3.3%) at Rs.1097.85, Cairn India up by (3.17%) at Rs.286.15.
The BSE BANKEX index was at 10,273.56 up by 231.10 points or by (2.3%). The main gainers were Yes Bank up by (6.6%) at Rs.269.55, Canara Bank up by (4.53%) at Rs.414.2, Axis Bank up by (3.91%) at Rs.1036.5, Kotak Mah Bank up by (3.66%) at Rs.812.45, Federal Bank up by (3.08%) at Rs.242.45.
The BSE METAL index was at 16,632.52 up by 340.49 points or by (2.09%). The main gainers were Sail up by (3.7%) at Rs.204.55, Jindal Saw up by (3.35%) at Rs.960, Sterlite Inds up by (3.19%) at Rs.885, Hindalco Inds up by (2.93%) at Rs.142.1, Jindal Steel up by (2.77%) at Rs.705.5.
Sun Pharma zoomed 5.62%. On 26th November, the pharma company had received tentative USFDA approval for generic Strattera Capsules, which is used for treatment of attention deficit hyperactivity disorder.
Sterlite Technologies Ltd increased by 5.36%. The company has received over Rs 600 crores in new contracts for its telecom and power products in November 2009, from prominent incumbents in India and Africa.
Maruti Suzuki India Limited advanced by 1.69%. The company sold a total of 87,807 vehicles in November 2009, with growth of 60.1% compared to previous year. This includes 11,448 units of exports. The company had sold 47,704 vehicles in the domestic market in November 2008.
TVS Motors advanced by 0.35%. The company posted a 23% growth in total two-wheeler sales for November 2009, clocking more than 1.20 lakh vehicles even as it experienced a dip in total motorcycle sales and export of two-wheelers.
M&M Ltd gained 4.84%. The company''s total sales jumped 96% to 22,587 units in November 2009 compared with corresponding period of previous year.
Rupee:
The partially convertible rupee INR=IN closed at 46.31/32 per dollar, 0.4 percent stronger than its Monday's close of 46.50/52. (Source: Reuters)
Asia:
Source: Bloomberg.
Asian Stocks Rise as Commodity Prices Gain; Panasonic Advances
Asian stocks rose for a third day, lifting the MSCI Asia Pacific Index to a six-week high, after commodity prices increased and UBS AG recommended investors buy Panasonic Corp.
Rio Tinto Ltd., the world's third-biggest mining company, advanced 2.9 percent as gold climbed to a record. BlueScope Steel Ltd., Australia's largest steelmaker, climbed 4.3 percent after boosting production capacity in Indonesia and saying demand is improving. Panasonic, the world's biggest maker of home electronics, added 1.4 percent.
The MSCI Asia Pacific Index rose 0.6 percent to 120.15 as of 10:22 a.m. in Tokyo, set for its highest close since Oct. 21. The gauge has gained 5.6 percent in the past three days amid optimism the region's companies will be sheltered from losses related to Dubai World, which is seeking to restructure its debt payments.
"We're still quite positive on the Asian markets," Arnout van Rijn, chief investment officer of Robeco Hong Kong Ltd., told Bloomberg Television. "Dubai to me is a blip. It looks like there is an over exaggeration."
Japan's Nikkei 225 Stock Average gained 0.5 percent. South Korea's Kospi Index climbed 1.7 percent. Australia's S&P/ASX 200 Index gained 1.3 percent and New Zealand's NZX 50 Index increased 0.4 percent.
Futures on the S&P 500 Index were little changed. The gauge rose 1.2 percent yesterday as Chinese manufacturing grew at the fastest pace in five years and Dubai concerns eased. In addition, a report showed pending sales of U.S. existing homes unexpectedly rose in October.
Commodities Advance
Dubai World is seeking to delay payments on less than half its $59 billion of liabilities, easing the potential damage to banks recovering from $1.7 trillion of losses and writedowns from the global crisis.
Rio Tinto advanced 2.9 percent to A$73.45. BHP Billiton Ltd., the world's biggest mining company, gained 1.5 percent to A$41.96.
The London Metal Exchange Index, a measure of six metals including copper and zinc, climbed 1.9 percent yesterday, its steepest increase in two weeks. In New York, gold futures rose 1.5 percent $1,200.20 an ounce, the first time the precious metal topped $1,200. Crude oil gained 1.4 percent to $78.37 a barrel, the highest settlement since Nov. 18.
BlueScope Steel climbed 4.3 percent to A$2.94. The company said it will invest an additional $40 million to boost its capacity in Indonesia. OneSteel Ltd., Australia's No. 2 steel producer, added 2.3 percent to A$3.13.
The MSCI Asia Pacific Index has climbed 70 percent from a more than five-year low on March 9 amid signs stimulus measures were reviving economies around the world. Stocks in the benchmark index are valued at 22 times estimated earnings, compared with 18 times for the S&P and 16 times for Europe's Dow Jones Stoxx 600 Index.
Panasonic added 1.4 percent to 1,151 yen. UBS recommended investors "buy" the stock and set a 12-month share-price estimate of 1,500 yen.
Nikkei 225 9,556.02 -16.18 ( - 0.17%). (08.12 AM IST)
HSI 22411.59 +298.44 +1.35%. (08.13 AM IST)
SSE Composite 3235.36 3263.39 3269.69 3245.96 + 0.87. (08.15 AM IST)
INVESTMENT VIEW
City Union-Catch The Cub Young
Target Rs 36
City Union (CUB) is geared for a significant re-rating. With a tier-I ratio at 13 per cent and a sub 70 per cent C-D ratio, we expect the bank to focus on growing it's assets more on growing it's assets more aggressively over the next few years. With a loan book of a predominantly lower-duration, we also expect the asset side repricing benefits to begin accruing from Q3FY10 onwards.
Initiate BUY with a target of Rs 36, a 40 per cent upside from current levels (excluding a dividend yield of 5 per cent).
Under-owned by Institutions
With FII ownership at 12 per cent and Institutional ownership at less than 8 r cent, CUB offers a compelling Buy opportunity to Institutional players.
Capital Infusion
During November 2009, CUB raised Rs 48 crore through a rights issue. Subsequent to the Rights Tier I Capital has risen to 13 per cent positioning the Bank for a near 30 per cent growth in FY11.
Superior Return Ratios
CUBs return ratios are amongst the best in class among domestic banks, factoring capital infusion the ratios should rise even further.
Valuation
At Rs 25.60 CUB trades at 1.2 and 1.1 FY10 and FY11 ABVPS, which is the lowest amongst private sector banks. The stock could easily trade up to 3 times FY11 ABVPS, which could give it an extraordinary target of Rs 36 in the short term and Rs 60 by end FY11.
(Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.)
--
Arvind Parekh
+ 91 98432 32381
