B-ringing in FDI; flat start for the day A lot seem to be happening these days. The government on Tuesday decided to hike foreign direct investment (FDI) in a dozen sectors, including 100% in telecom and higher caps in insurance and defence sectors. However, sectors like civil aviation, airport, media, multi-brand retail and pharmaceutical remained untouched. The outlook for the day remains a tad positive in light of latest FDI measures. Stock-specific swings will be witnessed as corporate announce their numbers. HDFC Bank will be in focus today. However, bank stocks and rate sensitives are likely to remain weak today. Globally, investors are anxiously awaiting a testimony from Federal Reserve chairman. His take on timing of the US central bank’s tapering of its bond buying stimulus program and the impact on interest rates will be closely eyed. ADB had lowered India’s growth forecast to 5.8%. Trading ideas (Time period: 1-3 days) Castrol (BUY, above Rs342, Target Rs355, SL Rs336): Castrol has given an upside breakout after consolidating in rounding bottom formation which resembles bullish structure. Also in the process, the stock closed above the resistance of its its 50-DMA. Breakout is also seen in daily RSI after the formation of rounding bottom, this provide supplementary evidence of sustainable upmove in the counter and stock is likely to head towards Rs360 in the medium term. We advise buying the stock above Rs342 with stop loss of Rs336 for an immediate target of Rs355. Derivative strategies (Time period: Till expiry) Short Federal Bank July Future below Rs386 for the Target price of Rs376 with a Stop loss placed at Rs391. Lot size: 500 Remarks: Net maximum profit of Rs5,000 and net maximum loss of Rs2,500. Corporate Snippets Essar Projects said it has secured a refinery expansion project contract worth Rs5.5bn from Bharat Petroleum Corporation Ltd (BPCL). (BL) Unitech Corporate Parks (UCP), is looking to sell its IT SEZ in Gurgaon. The company is understood to have shortlisted a few bidders including General Insurance Company, Blackstone, Dishman Pharma, Mapletree and Canadian Pension Fund. (BL) Gujarat State Petroleum Corporation hopes to soon get green clearances for laying onshore installations at the KG basin block. (BL) The NRI businessman and managing director of the Abu Dhabi-based EMKE Group, has picked up 4.98 % share in the Kerala-based Federal Bank. (BL) According to sources, Cipla and Alembic have approached the Delhi High Court and Gujarat High Court, respectively, challenging the provisions of the new Drug Price Control Order (DPCO), 2013, notified by the government in May. (BS) TTK Prestige has called off an ambitious pact with Illinois, US-based kitchenware company, World Kitchen, hardly an year after the pact was signed. (BS) Coal India Ltd (CIL), which plans to invest Rs60bn in foreign acquisitions in FY14, is evaluating buying stakes in three coal assets in Australia to bridge the shortfall in its domestic production, sources said. (BS) Coal India will enter into 7-8 more fuel supply pacts the power major NTPC for 4,000 MW generation capacity, a top official said today. (ET) Punj Lloyd is planning to refinance up to Rs14bn of debt into dollar loans over the next six months to cut costs and soften the impact of a falling rupee, a senior company official has said. (ET) V-Guard doubles capacity to meet growing demand. (BL) Economy snippets To boost the sagging economy, the Government today hiked foreign direct investment (FDI) limits in a host of sectors and allowed 100 % in telecom, asset reconstruction companies, and credit information companies.(BL) ADB lowers India’s growth forecast to 5.8%.(BL) The central bank restricted banks’ access to easy money in a bid to stabilise the rupee and prevent speculation in the currency market. The RBI placed a cap of Rs750bn on daily borrowings by banks from it. The RBI further increased the interest rate under marginal standing facility (MSF) to 10.25 % from 8.25 %.(BL) The Centre is planning to launch the Direct Benefit Transfer (DBT) scheme for all liquefied petroleum gas (LPG) customers in the country by the end of this year.(BS)
Posted on: Wed, 17 Jul 2013 04:12:06 +0000
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