Markets en-Gulfed in worries! Weak start The world and its markets are not really looking good as far as equities are concerned, at least for the day. Stocks in the Gulf regions including Dubai crashed 6.5% on Sunday. Macro-data numbers released on Friday remain disappointing. Yes, corporate results are on and Infosys did manage to shine on the bourses. The coming weeks will see more stock-specific action mostly led by results. The outlook is a weak start. Investors will pay close attention to Reliance Industries, as the company announces results today. We expect RIL to report revenues marginally lower yoy and PAT to increase by around 3% yoy in Q2 FY15. On a sequential basis, while GRMs will fall in line with the global benchmarks, higher throughput and better petrochemical spreads will offset the impact resulting in stable profitability. September exports & imports data along with WPI will be eyed this week. Asian indices are mostly lower. US stocks closed in the red. The Dow has slipped into negative territory for the year as it fell 0.69%. S&P 500 dropped over 1.15% and Nasdaq Composite crashed by 2.33%. Trading ideas (Time period: 1-3 days) Hero Moto Corp (BUY, below Rs2,830, Target Rs2,910, SL Rs2,790): Following a sharp correction from the peak of Rs3,029, the stock has taken support at its upward sloping trendline which is in place since February 2014, wherein every decline is met with buying interest. The stock also retraced 23.6% of its previous upmove before resuming its trend on the upside. The same also coincided with the lower bollinger band support. So expect recovery to take the price back above Rs2,900 in the short-term. (Duration 5 days) Derivative strategies (Time period: Till expiry) Buy Call LICHSGFIN 330 Oct below 2.5 with SL of 1 for target of 6, 8 Lot size: 1000 Remarks: Net maximum profit of Rs5,500 and net maximum loss of Rs1,500. Corporate Snippets Reliance Industries is looking to sell its 45 % stake in the Eagle Ford basin shale oil and gas venture in the US for an estimated US$4.5 bn. (ET) Garware-Wall Ropes eyes Rs10bnrevenue by 2017, mainly driven by growing demand in the aquaculture and agriculture segment. (ET) Berger Paints India Ltd, which has introduced Express Painting, a solution for faster painting services in Kerala and West Bengal, is setting up a training academy for painters at Kochi to upgrade their skill. (ET) NTPCs thermal power plant at Kahalgaon is setting up bagging machines in the unit for mechanised packing of ash for use in cement firms in North-East, after warning from pollution control board and protests from locals against open filling of fly ash. (ET) Suzlon plans to list its German subsidiary Senvion on the London Stock Exchange through an initial public offer which is likely to garner close to Rs.70bn. (ET) Kingfisher Airlines is facing a close regulatory scrutiny over suspected lapses in its accounting practices and the Corporate Affairs Ministry is looking into possible violations of Companies Act. (BS) Fresh trouble is brewing for MRPL with affected residents in the vicinity of its petrochemicals complex protesting against the refiner for causing alleged air, noise and water pollution. (BS) Cairn India said that its average daily gross output from all its producing fields fell by 9 % during the second quarter of fiscal 2014-15 to 194,508 barrels of oil equivalent per day (oil plus some gas).(BL) The Hypercity format of Shoppers Stop Ltd is expected to turn around this year, thanks to an all-round restructuring exercise the company has executed, Managing Director Govind Shrikhande said.(BL) Air India, which is sitting on a huge debt pile and surviving on the Rs.300bn government bailout, is allegedly getting even those aircraft, which have not been in operations for some years now, insured at a cost of US$6 mn in a year. (BS) Economy snippets The government is looking at relaxing FDI policy for the cash-starved medical devices sector to attract more investments and boost domestic manufacturing. (ET) India Incs overseas direct investment in September 2014 more than doubled from a year ago period to US$3.02 bn. (ET) Reserve Bank of Indias (RBI) Deputy Governor S S Mundra has said that the central bank plans to announce the final norms on small and payments banks next month. (ET) The Centre is working on a solution to ensure that poor get benefits like free medicines and check-ups in speciality government hospitals on the basis of their BPL ration cardswhile eliminating income tax payers and top officials from the ambit of PDS.(BS)
Posted on: Mon, 13 Oct 2014 04:23:39 +0000
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