Rising raw material costs and interest rates seem to be taking its toll on the automobile sector of India. Now that the financial results of most of the bigwigs in the auto sector are out, the writing which has emerged on the walls looks pretty grim. First things first, a quick synopsis of the results.
Amit Dalal of Amit Nalin Securities expects the Nifty to trade rangebound between 3,800 and 4,300 in August. “I don’t think we will break that very easily. On the contrary, 13,800 on the Sensex is also looking as a good resistance point. Unless we hear some huge negative movements in oil or some major defaults taking place in US markets, the Nifty should not break the lower end of that range very easily now.”
Market Review for 1st August 2008
The Sensex opened with a positive gap of 72 points at 14,359, but soon slipped into the negative zone owing to neversouness ahead of derivatives expiry of the July series.
Kinetic Motor’s assets bought for Rs 110 crore.
We recommend a ‘buy’ in Thermax from a short-term perspective. It is visible from the charts of Thermax that it had been on a long-term downtrend from its October 2007 peak of Rs 963 to its July 2008 trough of Rs 330. The stock lost 65 per cent from the peak.
Reliance Communication has announced its first quarter results. The company’s Q1 results were inline with expectations, its net profit was up 0.6% at 1512 crore versus 1502 crore, QoQ.
Hem Securities has recommended buy rating on ONGC with target price of Rs 1556, in its research report dated 30th July 2008. “Oil and Natural Gas Corporation (ONGC) has announced results for the first quarter of FY09 and has beaten all the market expectations. Being one of the highest profitable companies in India with a 74.14 % stake of the Indian government, the company contributes 76 % of India’s crude oil production and 68 % of the country’s total Gas production.”
Amit Dalal of Amit Nalin Securities is positive on sugar.
Amit Dalal of Amit Nalin Securities is of the view that South Indian Bank is a good and safe bank to invest in.
PVR has declared its first quarter results. The company’s Q1 net profit was up at Rs 3.9 crore versus Rs 2.6 crore, QoQ.
KRChoksey Research has maintained its buy rating on Satyam Computer Services with a target price of Rs 456 in its July 22, 2008 research report. “While rupee revenue was above guidance, the company has missed its USD guidance(US GAAP) after adjusting for rupee benefits. Since last 8 quarters Retail/Transportation sector has been growing at 15% q-o-q. EBITDA increased 14.8% q-o-q to Rs 623.3 crore in Q1FY09. Visa costs impacted EBITDA margins negatively by 80bps. In comparison to the previous 2 quarter volume growth of 8.8% and 9.4%, Q1FY09 volumes grew by merely 3.01%.”