Export stocks will rule in the coming sessions

Export stocks finally got life line from the Indian Government. Government announced sops to the extent of Rs 1,400 crore to the sectors which were severely hit by rising rupee except IT. Underperformers like Textiles and other export stocks will rule the Indian share markets in the coming sessions. Short term investors should enter into these stocks to make huge profits in the short term.

Market sentiment: BSE Sensex will gain around 150 points due to inclusive rally from under performers. Profit booking will be seen in recent performers like GMR Infra.

Global cues: US markets made record gains with Dow Jones is making record gains in one day after 2002. Indian markets will follow their global peers to make new record highs.

Sector of the day: Export stocks especially Textile stocks.

Stock of the day: Textile stocks, KRBL, Hanung Toys, DLF, DCM Shriram and Raymond.

Rumour of the day:

1. Rupee may touch Rs 36 by the end of 2007. Stay away from IT stocks.

Pharma stocks that will be benefitted from Rupee rise:

1. Ipca Labs, Lupin, Ajanta Pharma, Nicholas Piramal and Elder Pharma.

News of the day:

1. Rs 1,400 crore sops package was unveiled for exporters to save them from rupee problems.
2. Commerce ministry reduced the exports target for 2007-08 to $ 125 billion from $ 160 billion.

Significant news:

1. Manufacturing sector suffered decline in growth to 11.9 from 13.3% of the last year.

2. Sectors that will be benefitted: Textiles (including handloom), readymade garments, leather products, handicrafts, engineering products, processed agricultural products, marine products, sports goods and toys.

Positive stock news:

1. DLF Ltd bagged DCM Shriram land in West Delhi for Rs 1,750 crore – Record deal in India.
2. Great Offshore bagged Rs 1,000 crore order from ONGC.
3. TVS Motors will roll out bikes from its Indonesia plant within 30 days.
4. Geojit financial services recorded 71% rise in net profit.
5. Mukesh Ambani’s SEZ got clearance from government.
6. UTI bank profit rose by 45% to Rs 175 crore.
7. Govt. Gave clean chit to Jet Airways chairman Naresh Goyal. Fly in Jet flights to US.
8. Essar bid is short listed for Stelco.

Negative stock news:

1. Bajaj Auto net profit was down by 18%.
2. IL & FS COO Girish Nadkarni resigned and will join Avendus.

Best stock picks for day traders and Investors:

1. Raymonds.
2. DLF.
3. DCM Shriram.
4. SRF.
5. Vardhman Textiles.
6. Himatsingka.
7. Century Enka and Century Textiles.
8. Bombay Dyeing.
9. Alok Industries.
10. Arvind Mills.
11. Welspun India.
12. RSWM.
13. KRBL.
14. Hanung Toys.

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