Indian Stock market guide – April 13, 2007

Indian stock market investors will have very good opportunities in some shares today. Markets will gain around 100-150 points today. Invest in shares which lost heavily in the past 2 days like Ranbaxy Laboratories.

Infosys technologies will announce results in Bangalore today. Its forecast about the growth of IT industry will change the fortunes of IT stocks. Stay away from IT stocks.

Global cues:

US markets and most of the Asian markets gained some of their lost ground. Indian ADRs turned positive. Oil prices rise due to decline in US gas stocks.

News of the Day:

The Index of Industrial Production (IIP) registered an 11 per cent growth during February 2007 as against 8.8 per cent in the same month last year. For April-February 2006-07, IIP improved by 11.1 per cent as against 8.1 per cent in the same period last fiscal.

The manufacturing sector improved by 12.3 per cent in February compared to 9.2 per cent in the same month of 2006. For the April-February period, manufacturing grew by 12.1 per cent as against 9.1 per cent in the corresponding period last fiscal.

Stocks for Indian Day Traders:

1. Rallis India – Superb Q4 results.

Net profit of Rallis India rose 218.57% to Rs 9.78 crore during the quarter ended March 2007 as against Rs 3.07 crore in the previous quarter ended March 2006. It will gain 10-20 points.

2. Ranbaxy – Approvals to market its drugs in US and Canada markets.

RANBAXY RECEIVES APPROVAL TO MARKET CEFPROZIL TABLETS AND CEFPROZIL POWDER FOR ORAL SUSPENSION IN CANADA.


Ranbaxy Laboratories Ltd said it got US Food and Drug Administration approval to market Loratadine antihistamine tablets.

3. ICRA debuts today

It will be listed on the Bombay stock exchange in the ``B1`` group of securities.
The company offered 2,581,100 equity shares of Rs 10 each at a price band between Rs 275 and Rs 330 a share. The cut-off price was fixed at Rs 330 a share.

4. ITC:

Seven ITC hotels will be upgraded to be a part of the 64 premium properties worldwide that are recognised under the `Luxury Collection' brand.

5. Ballarpur Industries Ltd (BILT):
An increase of 21.85 per cent in its net profit for the third quarter ended March 31, 2007, to Rs 64 crore from Rs 52.52 crore in the corresponding period last year.

6. Reliance Communications:
It bagged majority of the Universal Services Obligation (USO) fund-sponsored rural cellular project.

7. Ruchi Soya:
Ruchi group buys palm oil business of Sical Logistics for undisclosed amount

8. Pantaloon Retail:
March sales up 84% at Rs 264 cr

9. SAIL:
It closes to acquire Malvika Steel

10. Alembic:
It undertake expansion worth 100 mn.

Stay away from following stocks:

1. Copper prices are in decline. Stay away from metal stocks.
2. TATA Power

Indian stock market guide for Investors - April 9, 2007

Indian stock markets are entering into another uncertain week ahead of Infosys results and famous forecast. But, on Monday, Indian shares gain due to positive news from International and Asian markets. Decrease in crude oil price and Rise in Asian markets are positive news. Most of the companies may declare good profits in their financial results.Infy may give less than expected growth projections which will spoil the sentiments of markets and investors.

Stocks for Day Traders:

Lupin - Selling Hypertensive drug patent.
Ranbaxy – Picks up stake in Jupiter bioscience and Profits from Africa.
Gujarat NRE Coke - Due to spectacular Q4 results.
SRF-Raising 500 Crore from Carbon credit.
Tata Power and Reliance - Got permission to hike power tariff in Mumbai.

Investors should stay away from following sectors and stocks:

1. Bank stocks and Auto stocks – I can’t understand why some investors are still buying these stocks?
2. Reliance share may lose some sheen due to Government decision to limit the size of SEZs to 5,000 acre.
3. Real estate stocks will be undervalued due to loss of investor’s interest and government’s restrictions.
4. Fears of Rupee appreciation against dollar is not a good option to enter into IT stocks.
5. NTPC -Due to lacklustre results.
6. Jet airways - Court hearing.

Investment strategy for day traders (April 4, 2007)

Indian Stock market outlook for Wednesday:

This is going to be one of the good days for Day traders. Markets will gain at least 200-250 points.

Global Markets:

All the global markets rose substantially. Indian markets will respond in the same manner.

Stocks for Day Traders:

Indian Hotels, Zee, Orchid Chemicals and Ranbaxy. Day traders can bet big on Orchid Chemicals.

Advice for Long term Investors:

Sell ‘Infosys’ shares – It will announce less than favourable future growth.
Stay away from Real Estate, Banking, Consumer Finance and Auto shares. I can’t understand why investors bought these stocks on Tuesday.

Stocks for Long term Investors:

Ashok Leyland and Finolex Cables.

Please share your idea.