Flat markets with no major triggers

Indian stock markets will see marginal gains with gains in few specific stocks. If inflation is under control, markets will see buying in the mid session. Underperforming sectors like Cement and sugar stocks will shine due positive statements by finance minister.

Global cues: US markets are still in uncertain zone while Asian markets are in positive zone. Crude price is continuing its upward march.

Sector of the day: cement and Sugar (just my intuition).

Positive stock news:

1. Pfizer net profit rose by 7 times from Rs 35 crore to Rs 258 crore.
2. TATA Steel revived Rs 2,500 titanium project. Tata steel shares may bounce back today.
3. TCS is concentrating on Latin-America. It will acquire two IT firms in that region.
4. Infosys may acquire Capgemini.
5. IFCI is planning to sell 26% stake to institutional investors. I have invested in this stock. IFCI will definitely sell its stake at much higher price.
6. IDBI sold 2% stake in NSE.

Negative stock news:

1. SBI will hike home loan EMIs. NPAs will rise due to defaults.

My stock opinion:

1. As I said, Hindalco is returning back. Never invest in a stock just basing on the rumours. Shares of those stocks that rose without fundamentals will not able to sustain those valuations. I suspect the rise behind RPL even though it is a sound stock for long term.

2. Don’t get depressed by seeing the results of wire and wireless. It is a good long term story. Like telecom, investors will have to face losses in the initial stages due to big investments in the infrastructure. If you are a long term investor with 2-3 year horizon, it will be a multibagger. Accumulate this stock. Along with RPL, this stock will be future leaders in their field.

3. Cement companies may not sustain yesterday’s high rise for long term. Monsoon period is generally not good for cement companies.

4. Don’t be fooled by the Pfizer profits. Most of this income is from other sources but not from main businesses.

5. Due to good monsoon, fertiliser stocks will shine in the coming weeks.

6. ITL shares may see some selling pressure due to BSNL GSM equipment order troubles.

7. Religare bought ADK foods. Closely watch this stock as it is a acquisition target.

8. Tata Tea may bounce back on Cadbury buying rumours. Caution advised.

9. TVS Motors will continue to see selling pressure due to poor results.

10. Stay away from current IPOs. There will be good IPOs in the coming weeks.

11. Among entertainment stock, Shree Ahtavinayak is currently available at attractive value.

12. KRBL posted unimpressive results but stock is already bottomed out.

My stock investments in the last 3 days:

1. IFCI- So much value left in this stock.
2. Dhampur sugar mills – Low valuations. Strictly for long term.
3. Wire and Wireless – strictly for long term.
4. TFCI- short to medium term.
5. Hindustan Sanitary ware – with risk.
6. Mastek – Medium to long term.

Please share your opinion on my stock views.