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Monday, 29 December 2014

Nifty hovers around 8250; IT & pharma gain, metals down

10:40am Rohit Ferro Tech shares in demand

"The board of directors of the company on Monday approved the proposal to sell, transfer or otherwise dispose of the Jaipur manufacturing unit of the company located at Kalinganagar industrial Complex, District: Jajpur, Orissa as going concern by way of slump sale or otherwise, subject to the such approvals and permission as may be required for such sale," said the company in its filing to the exchange.

Rohit Patni, managing director and Suresh Kumar Patni, director of the company has been authorized to negotiate the proposed deal with the prospective acceptable purchasers.

10:20am Market Expert

Sanjeev Prasad, Kotak Institutional Equities says the Street has largely focused on economic reforms, pace of economy recovery linked to economic reforms and decline in interest rates as the most important drivers for the Indian market for 2015.

“We broadly agree with the drivers and our Model Portfolio largely reflects the same. Our large positions in banks and automobiles reflect our positive views on economic recovery and lower interest rates,” he adds.

“We have taken the opportunity to remove Idea Cellular from the portfolio and add 100 basis points each to Infosys and Tech Mahindra. We have also removed GAIL from the Model Portfolio and allocated the 200 basis points weight to Reliance Industries,” says Prasad.

10:00am Market Check

Equity benchmarks remained in a consolidation mode due to lack of volumes at institutional desk. The Sensex rose 3.28 points to 27399.01 and the Nifty advanced 1.65 points to 8247.95. Technology and healthcare stocks gained while metals, oil & gas and select banks stocks were under pressure.

The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.5 percent each. About 1018 shares have advanced, 686 shares declined, and 57 shares are unchanged on the Bombay Stock Exchange.

Larsen and Toubro gained 1 percent as the government approved ordinance to amend the Land Acquisition Act to remove barriers in a range of sectors like power, housing, defense to kick start stalled projects, there by making the procedure to acquire land faster. Subsidiary L&T Construction bagged orders worth Rs 2,521 crore in December.

Container Corporation is expected to be a big beneficiary of Land Acquisition Amendment, as the implementation of Dedicated Freight Corridor/Industrial Corridor would get a boost. Company is planning to develop several multimodal logistics parks/private freight terminals (PFT) across India and along the DFC. The stock gained 0.6 percent.

Tata Steel fell 0.6 percent as reports suggest that the company has warned of a hit to its profitability in the third quarter of the current fiscal year because of the closure of its captive iron-ore mines in Jharkhand and Odisha, which forced the company to operate below capacity for more than a month during the quarter.

Jindal Stainless climbed 3.6 percent as company will demerge business into three verticals namely ferro-alloys, coke oven & stainless steel businesses via slump sale route. Shareholders of Jindal Stainless will get shares by the resulting de-merged company, Jindal Stainless (Hisar), under the ratio of 1:1.

IDBI Bank surged 2 percent. The bank told that the timing seems right to monetise stake in CARE, and will look to monetise a part of or whole stake in CARE. The bank believes it could receive between Rs 600-700 crore for entire shareholding at current market price. It also indicated it is looking to sell stake in NSE at right price with right buyer.

Blue Star jumped 3 percent as the company forayed into in-built water purifier segment by collaborating with Eureka forbes. Rohit Ferro-Tech surged 19 percent as the board approved proposal to sell, transfer Jaipur manufacturing unit. More information please visit this site www.bigprofitbuzz.com

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