MUMBAI: ICICI Direct expects the benchmark Sensex to hover between 12,000 and 14,000 levels by December 2009 and believes that themes like PSUs, infra, power, pharma, banks, FMCG, auto, and telecom would find favour among investors in 2009. It is bullish on stocks like SBI, Bhel, NTPC, Hero Honda, Maruti, PowerGrid, Bharti, GAIL, HLL, Sun Pharma, Glenmark Pharma and Elder Pharma.
Texmo Pipes and Products Limited, manufacturer of PVC and HDPE pipes, has filed its draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) for an IPO.
Angel Broking has maintained its neutral rating on Indraprastha Gas in its December 26, 2008 research report. “We have used DCF methodology to value IGL and have arrived at a Fair Price of Rs 105. DCF is more appropriate to evaluate the company given the expected Margin contraction going forward. At current levels of Rs 101, the stock is discounting 7.0x and 6.9x FY2009E and FY2010E Earnings. IGL has historically traded in the range of 9-13x its one year forward Earnings. However, on account of the meltdown in the global markets and deteriorating fundamentals, we believe all positives are factored in the stock price. Hence, we remain Neutral on the stock,” says Angel Broking’s research report.
BSE Sensex: (9716) the market unfolded as expected and like I said it could be up on the last of the calendar year. Crucial support to watch is 9495.
US Markets ended marginally lower whereas European Markets ended on a higher note.
BSE Sensex: (9534) the market made a new low but bounced back to close positive and so far it looks as if the market should be up until 31st Dec 2008
Stocks in news:
Indian ADRs:
HDFC Bank up 10%, ICICI Bank up 9%, Satyam up 6%, Tata Motors up 8%
Deven Choksey, KR Choksey Sec: The market may remain firm in the near-term as signs of fresh buying are seen. The Sensex can gain further if it crosses 10,200. The downside would be limited to 9,200 for now.
Technical Analyst, Vijay Bhambwani: The markets opened on a tentative note and ended with gains as the players shrugged off the nervousness on the geo political front, backed by overseas cues. The benchmark indices gained about 2 % at close. The traded volumes were higher as compared to the previous session, which is a positive indicator on an uptick session. The market breadth was positive as the BSE & NSE combined advance decline ratio was 1961 : 1611. The capitalisation of the breadth was positive as the BSE & NSE combined figures were Rs 10766 crs : Rs 1001 crs.
Vibhav Kapoor of IL&FS said today’s market rally today was expected but feels the rally is just getting set up for a fairly steep and long decline in the markets in the months of January, February and March. He expects the Indian as well as the global markets to retest their October lows. “That is when the results for the next quarter will come in and the market will really get to assess how bad things are as far as corporate profitability is concerned, and which sectors are doing better and which are not doing so well.”
VK Sharma of Anagram Stock Broking is of the view that Maruti Suzuki is a good buy, safe bet among the auto stocks.