7 Indian companies in future giants list

Morgan Stanley picked 7 Indian companies among the Asia Pacific’s best 20 companies by their future growth potential. It is clear signal for Long term investors (3-5 years) to make strategic investments in these companies. You should accumulate these stocks on every fall. Safe 7 Indian companies according to growth potential:

1. Reliance Industries: There is so much value left unlocked in this giant. It is a safe investment in terms of growth potential and value.

2. Reliance Capital: This Company made good investments in high growth sectors whose value will be unlocked in 2-3 years.

3. Pantaloon Retail: I have some doubts over this stock due to increase in competition and high valuations.

4. Larsen and Toubro: My favourite company which will give at least 200% returns within 3 years just due to value unlocking. If you add growth potential, sure jackpot. I will accumulate this stock as long as it stays below 3,500.

Short term target: 2,900-3,200 (Face value-2)

3-year target: 4,500-5,000 (Face value-1).

5. Bharti Airtel: It is making big investments over bandwidth which will play crucial role in future. Reliance Communications is also a good bet.

6. IDFC: Another safe stock for investors.

7. Sobha Developers: I have some doubts over this stock.

Can Anil Ambani beat Mukhesh Ambani?:

If you search for Reliance in Google, first result is Reliance Communications but not Reliance Industries. Can he repeat this performance in real life?

Please share your opinion on these 7 companies.

Welcome to volatile week

With derivative expiry and RBI credit policy are around the corner, Indian share markets will trade in extreme volatility in the coming sessions. Indian stocks are in “unclear” zone with Mutual funds and big domestic investors are waiting for correction, NRIs and FIIs are pumping money. My advice- does not take long positions and book profits immediately in high growth stocks. Correction is eminent but when will it happen?

Global markets: US markets suffered heavy losses on Friday due to poor results by Google. Emerging markets suffered heavy losses along with Japan market. China is the only exception.

Stocks of the day:

1. Hindustan Lever: Future rise will depend on offer price. Dividend and Buyback offer make this stock of the week. My Target is Rs 250-280. HUL board will officially announce offer price on July 29 board meeting.

2. Dr Reddys – Results.

Rumours of the day:

1. NTPC will announce Bonus shares and good preferential allotment to existing investors in its FPO.

2. Chevron may buy stake in Petronet LNG.

Significant events:

1. Derivative expiry on July 27. Expect volatile trading in between.

2. Watch out for RBI’s credit policy on July 31st. What will happen to Interest rates? May be no change.

Significant News:

1. Current interest rates are at reasonable value – Finance Minister.

2. We are waiting for softening of interest rates – ICICI Bank.

3. Crude will cross $ 75 and may touch $ 90– Analysts.

Positive Stock news:

1. Nitin fire net profit rose by 109%.
2. Lead prices are rising. Watch out for Hindustan Zinc.
3. Karur Vysya bank net profit rose by 25% while Indian bank posted 29% rise in net profit. Bank stocks already factored these good results.
4. Mahindra and Mahindra will acquire Lokesh machines.
5. FICCI recommended 10 year tax holiday to health care infrastructure builders and soft loans.
6. UB Holdings is planning to sell stake in Deccan Aviation.

Negative Stock News:

1. ADRs of Indian IT stocks suffered heavy losses along with MTNL.
2. McKinsey sued Reliance and Reliance Communications over dues.
3. Increase in gross NPAs of ICICI Bank is worrying news.
4. UTI Bank priced its GDT at 1.7% discount.
5. NDTV and Arvind Mills are in F&O ban.
6. 50% of the penny and loss making companies are trading near all time highs. Stay away from such stocks.

Stock advice:

1. Ispat industries will announce results on July 24. Will it surprise CNBC analysts?
2. Zee News fundamentals does not justify the steep rise.
3. Voltas is looking very good and Meghamani Organics is a safe one for long term investors.
4. Raymond is a contrarian bet for long term investors.
5. Tayo Rolls is a safe bet for long term investors. Corus supply will propel this stock.
6. Dr Reddys is ready for sound results despite rupee appreciation.
7. Don’t take fresh long positions in Real estate stocks. You will get better price later.
8. Adlabs may move upwards at any time. Good results will be a trigger.
9. Business Standard published very good article on Gujarat NRE Coke. Must read.
10. If RBI will not change interest rates, Bank and real estate stocks will rule the markets along with Maruti. Crude oil price is a real concern.

IPO views:

1. Central Bank of India will list around Rs 130-140. 25-40% gains on the listing day itself. Invest in this IPO.
2. Omaxe may list with 40% gains. Good return if you will get allotment.
3. I don’t have positive opinion on IVR Prime. Stay away from this IPO.

Hot stocks for day traders and investors:

1. Hindustan Zinc – Rise in lead prices.
2. Hindustan Lever – Buyback offer.
3. Nitin Fire – wonderful results.
4. Voltas – Positive momentum on the back of good results.
5. Sell UTI Bank – GDR low pricing.
6. Dr Reddys – will post wonderful results.
7. ICICI Bank – good results.
8. Deccan Aviation – Stake sale and open offer.
9. Prajay Engineers syndicate – Medium term stock.
10. EID Parry – Technically strong.
11. Sun TV – Bonus, Dividend and Stock split.

Please share your views on Indian Stock markets and my stock recommendations.

Indian share Markets are in bearish phase

Bears will dominate Indian stock markets in the coming sessions due to weak global markets and profit booking. There will be a clear slow down in the growth of most sectors and fail to justify their very high valuations. This is a very opportunistic period for new investors who want to enter into good stocks. High growth stocks like R-Com, Reliance Energy, PFC, IFCI, IDBI, Praj Industries, ABB, L&T, JP Associates Etc. will be available at good valuations after this moderate correction. This is also a transition period in some sectors like IT and Telecom where TCS is looking strong over Infosys and R-Com over Bharti Airtel. Pharma is a safe bet in these volatile times.

Global cues: Global markets are looking weak with Asian Markets are down due to profit booking.

1. Dow Zones touch 14,000 during intraday and NASDAQ was at 6 year high. Profit booking was seen in the late session like Indian Markets.

New Listing – Sun Pharma advanced research.

Stock of the day: DLF. It will post wonderful results by tomorrow.

Significant news and views:

1. HSBC downgraded Indian equities due to increased leveraged positions and high valuations. It is bearish on Indian stocks.

2. Sensex target by the end of 2007 is 13,500-14,200 – HSBC Securities. It is a real concern.

3. Rupee target by the end of March, 2009 is 37.8 against Dollar – Credit Suisse.

4. IIP Numbers were once again down indicating slow down in economy with Consumer Durables and Auto is the worst performer while Capital goods is the best performer.

5. 10% growth is possible in next financial year – Finance Minister.

6. There will be some more CRR hikes – UBS.

Positive stock news:

1. Net profit of Zee Entertainment was increased by 50%.
2. KPIT Cummins posted 22% jump in net profits despite strong rupee and rising salaries.
3. Gateway Distriparks announced good results.
4. R-COM announced massive expansion plans. This stock should be in everyone’s portfolio along with Reliance Capital and Reliance Energy. Accumulate these gems on dips.
5. ITC Foods launched organic spices in select categories.
6. Tata Motors entered into Saudi Arabian market by launching 3 car models.
7. NDTV posted a net loss of Rs 2 crore Vs net loss of Rs 10 crore in previous quarter.
8. Nectar Life sciences is a very good stock but it was overbought.

Negative news:

1. Tata Tea net profit was decreased by 49%. Buy on dips. Tata Tea will give 20% returns within 1 year.

Stock advice:

1. Value unlocking in tower business by Reliance Communications will yield good results. This stock is a safe bet for any kind of investor.

2. Jubilant Organosys announced wonderful results. Stock is ready for new highs.

3. Biocon will rise ahead of good results.

4. Gateway Distriparks will announce good results.

5. TCS will overcome Infosys in forward PE due to its less dependence on US.

6. L&T is getting orders in a big way. Accumulate this stock on correction.

7. Accumulate Bharti Shipyard if you are a long term investor.

8. Hanung Toys is a safe stock for conservative investors.

9. Mutual funds are accumulating Meghamani Organics.

10. Noida Toll Bridge is another good investment. Good growth story at least for another 2 years. Valuations are the only worry.

11. Bayer Cropscience is a good bet for risk taking medium term investors.

12. Hindalco will be benefitted by Rio Tinto acquisition of Alcan.

Stocks to watch out for:

1. Reliance Industries – Strong Momentum.
2. Dr Reddys and Lupin – Pharma is a good bet.
3. Gujarat Ambuja, ACC and Shree Cement – Cement demand.
4. L&T – may bounce back on strong orders.
5. Reliance Energy.
6. DLF is looking strong ahead of results.
7. Tamilnadu News Print.
8. Alembic.
9. RNRL – may gain by 1-2%.
10. Jubilant Organosys.
11. Gateway Distriparks.
12. Plethico Pharma.

Share your views on Indian stocks and comment on my views.

Uncertain Indian stock markets

Uncertainty is continuing in the Indian Share markets with news of correction are playing on the investors’ minds. US markets are in the negative zone while Asian markets failed to give specific direction. Trade cautiously and book profits even with marginal gains.

Sentiment: Bearish/ Volatile/Flat. Stock specific trading.

Positive Stock news:
1. Sugar industry will a special purpose vehicle to keep sugar prices in control.
2. Idea may buy BPL Essar in Mumbai.
3. Oil refining companies and Tata Tea may bounce back at any time.
4. Rolta will setup IT Park in Kolkata.

Negative Stock news:
1. Tata Motors and Ashok Leyland reduced Tyre orders signifying slow down in commercial vehicle business.
2. L & T is suffering Rs 40 lakh a day in Gujarat.
3. RPL may return to 90-95 in this week.
4. Stay away from Hindalco and Sterlite.

Hot stocks for Indian Investors:

1. Aurobindo Pharma: US FDA approval for Ciprofloxacin and positive momentum in the counter.
CMP: 726
Target: 732 and 739
Stop Loss: 719

2. NIIT Tech: Bonus issue and Stock split.

3. Patni Computers: Stake sale.
CMP: 541.2
Target: 550
Stop Loss: 525

4. IDBI: Positive momentum.
5. SAIL: With risk.

6. Either Motors: Impressive sales.

Stocks to watch out:
1. Reliance Capital – JV with UD drug retailer.
2. Ispat Industries and Cyber Media – Results.

Hot Stock picks for Day traders and short term investors

BSE Sensex may touch 15,000 mark in June if rupee stays above 40 Vs dollar. With inflation is under control, RBI may not hike interest rates. With the introduction of futures and options in NSE Nifty junior and CNX 100, bulls will dominate markets due to increase in positive sentiment. Though DLF IPO and ICICI Bank issue will suck some money from markets, markets will rise due to participation by FIIs in selective stocks.

Market Movement: Nifty may touch 4350. Bulls will dominate the markets. Nifty Junior and CNX 100 stocks may see increase in volumes due to futures and options trading.

Warning for long term investors: If any major negative news breaks out, it will see a big crash in the markets due to high valuations in blue chips. Don’t take long positions in major stocks.

Significant News:

1. Indian economy grew at 9.4% in 2006-07 due to wonderful performance by Manufacturing, Services and Mining sectors.
2. Slow down in agricultural sector is a concern.
3. Reliance Money, online trading platform, will increase trading kiosks to 10,000 by March 2008 and to 25,000 by March 2009.
4. Amtek Auto will acquire the foundry business of UK based JL French castings.
5. L & T will spend Rs 2500 crore in expansion in 2007-08.
6. India became trillion dollar economy.
7. Closely watch Textile stock Himatsingka Seide share. It is currently trading at Rs 110.8.
8. Parsvnath announced the launch of Paliwal city in Panipat.

Negative news:

1. Average income of an Indian is less than Rs 2500 per month.
2. Low cost airlines like Spice Jet and Go Air may suffer heavy losses with recent consolidation in Indian Air space.
3. 50 Doctors will quit Escorts heart institute to Join Apollo. Stay away from Fortis health care stock.
4. Amtek Auto is a safe stock for short term investors. Target is 425 -427.
5. Thermax, Punj Lioyd and Reliance Communication may see some profit booking.
6. Stay away from MTNL as its ADR suffered big loss.
7. Sterlite, Hindustan Zinc and Hindalco may rise due to increase in metal prices.

Stock Market advice:

1. Enter into TCS around Rs 1202-1205 with stop loss at 1195.
2. Glenmark Pharma is a good short term bet with some risk. Target 740.
3. Idea is a safe short term bet with a target of 150-160. It may sell some stake in 2-3 months.
4. Tata Tea is a good stock for short term investors with a target of 1000.

Hot stocks for Day trading:

1. Adhunik Metaliks: 74% growth in revenues and 130% rise in profits.
CMP: 53.20
Target: 55 and 57
Stop Loss: 51
Wonderful results. Good share for short term investor.

2. Tata Tea: Good bet for short term investors.
CMP: 920
Target: 932 and 948
Stop loss: 895
It will acquire Mount Everest and 42% stake of Himalayan Mineral water. Today is the results day.

3. United Breweries: Air Deccan Buy.

4. Reliance Capital:
CMP: 953.5
Target: 971
Stop Loss: 937
It already crossed daily turnover Rs 600 crore just within one month of launch.

5. Wockhardt Pharma: US FDA approval for Terbinafine.
CMP: 413.7
Target: 419
Stop loss: 406

6. Amtek Auto: Acquisition news.

7. Educomp Solutions: New contract with Haryana government.

Stocks to watch out:

1. Akruti Nirman.
2. Sun Pharma and Glaxo.
3. Aditya Birla Nuvo.
4. TV Today.
5. Parsvnath Developers.

Please share your views and recommendations.

Hot stock picks for Indian day traders

Stock markets will continue to trade volatile with action is around some select scripts. RNRL, Idea, RPL and Ashok Leyland will continue to see huge volumes. If rupee depreciates against dollar, IT stocks will hog limelight. Asian markets are continuing their positive momentum.

Sector of the Day: Power.

Significant News:

1. Power sector stocks may gain due to PM remarks on investments.
2. Monsoons touched Kerala shores.
3. I don’t believe in the growth story of Raj TV. Book profits.

My stock picks for Long term investors:

1. Wyeth Labs: Its earnings will rise once its research facility yields results.
2. GMR Infra: It will cross Rs 1000 by the time of Hyderabad international airport inauguration.
3. Idea cellular: Believe in this stock. Forget short term fluctuations.
4. Tata Power: It is well placed to utilise the “power boom”. Power sector will see a lot of action in the coming years.
5. Tata Motors: One lakh car will permanently change the dynamics of Indian car industry.

Enter into these stocks after correction in the stock markets which will happen shortly.

Hot Stock picks for Indian day traders:

1. Jaiprakash Hydra power: Good long term bet.
CMP: 34.15
Target: 36.8
Stop loss: 30
Prime minister comments on hydro power.

2. Ashok Leyland:
CMP: 37.4
Target: 38 and 38.6
Stop Loss: 36.2
Announcement on new innovative trucks.

3. Hero Honda: (If it breaks 690)
CMP: 687
Target: 695
Stop Loss: 672
It plans to build Rs 12,500-13,000 motor cycle.

4. Ranbaxy:
CMP: 383
Target: 387.5
Stop Loss: 378
Acquisition of dermatology brands.

5. Deccan Aviation:
CMP: 136.6
Target: 140.5
Stop Loss: 132
SBI may give extension on loans.

6. Idea cellular:
CMP: 126.2
Target: 128. 3 and 130
Stop loss: 124

7. Larsen and Toubro:
CMP: 1785
Target: 1816
Stop Loss: 1744
L&T will announce good results.

8. Reliance Communications
9. Reliance Energy
10. Tata power, Torrent power and NTPC

Stocks to watch out for:

GMR Infra, Unitech, Dr Reddys and Thermax.

Stay away from following stocks:

1. Reliance Industries: Jamnagar SEZ violation of norms.
2. Raj TV: Mad rise in this stock does not justify its inherent strength.
3. Stay away from Adani enterprises.

Please share your views and recommendations on Indian stock markets.

Stock Markets may see some correction on tuesday

Indian stock markets will correct on Tuesday due to profit booking, rupee appreciation and rise in crude oil price in the initial session. Markets may recover to some extent in the afternoon session.

US markets gave no significant clues while European markets rose due to rise in metal and crude prices. Indian markets will not follow global and Asian markets on Tuesday (My opinion).

Sentiment: Bullish/Volatile.

Positive trigger:

Rise in metal prices. Metal stocks will shine on Tuesday.

Warning News:

1. Crude oil price surged past $70 due to unrest in Nigeria. Reliance and Government oil refining stocks will suffer losses.

2. Front line stocks like Reliance Industries rose too much without any reason. This may play spoilsport to the market sentiment.

Stock recommendation for long term investors:

1. Idea Cellular:
Stock will cross 250 within one year due to exponential growth in Telecom space. This is the safe bet for long term investors.

Hot Stock picks for Day Traders:

1. Raj TV:
CMP: 262
Target: 271 and 277.
Stop Loss: 252
DMK-Raj TV alliance will trigger short-term growth for this network. It may cross 300 in this week. It bagged licences to launch 3 new channels.

2. TV 18:
CMP: 850
Target: 881
Stop Loss: 807
It forms an alliance with Virgin comics. It plans to launch an entertainment channel.
Caution: Investors may book profits in the initial session.

3. Orbit Corporation:
CMP: 229.5
Target: 233 and 237
Stop Loss: 222
Net profit rose 8,533% while sales rose 4,190%.

4. Satyam:
CMP: 447.5
Target: 457
Stop Loss: 443
Satyam signed contract with Hawker Beechcraft Corporation.
Caution: Rupee Vs Dollar.

5. Ranbaxy:
CMP: 400.7
Target: 403.5 and 406.5
Stop Loss: 398.3
Ranbaxy received approval to market Pravastatin in Canada.

6. Sterlite, Hindalco and Hindustan Zinc- Closely watch metal prices.

7. Dr Reddy’s Labs: Unexpected loss on Monday.

8. Reliance Energy and Reliance Communication will continue their bull run.

9. Closely watch Wockhardt, Tata Motors and NDTV.

Negative Stock Picks for Investors:

1. Stay away from SUN TV. Its quarrel with DMK government hits nadir.
2. Stay away from Everest Kanto.
3. Stay away from oil refining stocks like HPCL, BPCL and IOC.
4. Stay away from Apollo Tyres.

Please share your stock recommendations.