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Tuesday 31 March 2015

Sensex holds 28000; IOC, HPCL, BPCL, ONGC rally 1-5%

11:45am Stocks in Focus: SBI remained in focus as the bank has approved divestment in SBI Life by upto 10 percent. VG Kannan, MD, SBI saysthere are no plans to sell more than 10 percent stake at this stage and stake is valued at around Rs 2500 crore.

Reliance Industries climbed 2 percent as Morgan Stanley has upgraded the stock to overweight from underweight. It expects earnings to grow 50 percent over FY15-18e driven by downstream expansion.

CLSA reiterated its high conviction buy call on Infosys and raised target price to Rs 2800 from Rs 2500. It expects stronger revenue growth in FY16/17 as new management is in place and it should gain leadership in digital and traditional services while improving client mining. The stock fell 0.5 percent on profit booking.

Dr Reddy's Labs also gained 2 percent as CLSA has a buy rating on the stock, saying remediation efforts at Srikakulam API plant is on.

JK Tyre jumped 10 percent. Antique met the management and a few takeaways include the surge in Chinese import share not sustaining in the longer run especially with a cyclical revival in domestic commercial vehicles expected to start in H2FY16.

11:25am Road projects: After having awarded a total of 3000 km road projects in FY15, National Highways Authority of India now aims to award 9000 km road projects in FY16, says member- Finance Satish Chandra.

In an interview Chandra says the road authority also deferred premium payments for 13 projects to the tune of Rs 7000 crore in FY15.

Furthermore, Chandra adds the FY16 expenditure is  likely to be about Rs 75000 crore.

11:00am Market Check

The market continued to gain into today's trading session with the Sensex holding 28000 level. The broader markets outperformed with a firmadvance:decline ratio.

The Sensex advanced 66.20 points to 28042.06 and the Nifty gained 21.60 points at 8513.90. The BSE Midcap Index rose 0.6 percent and Smallcap rallied 1.3 percent.

About 1499 shares have advanced, 652 shares declined, and 137 shares are unchanged on the Bombay Stock Exchange.

Herald Van Der Linde, HSBC is still overweight on India and do not think investors are selling India to buy China although it has become more attractive on back of some key policy changes by The People's Bank of China (PBOC).

He believes there are no specific risks in India, the only risk being other markets could become more attractive. However, he does not see money being rotated out of India into other emerging markets either.

Oil marketing company stocks surged as the IOC chairman, B Ashok that they will report healthy profit in Q4. "Inventory losses have been made up and currently we enjoy healthy margins on petrol cracks. Under-recoveries will fall from Rs 15,500 crore in Q1 to Rs 3,000 crore in Q4," he says. IOC, HPCL and BPCL rallied 3-5 percent while ONGC also gained 1 percent.

Globally, Asia remained mostly firm, tracking the positive close on Wall Street. Shanghai markets gained 0.3 percent as Beijing unleashed a new policy to rejuvenate the property market. For more information please visit this site www.bigprofitbuzz.com  


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