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Fundamentals - Dec 22, 2012

Nifty settles below a crucial 5900 - pt mark.

Friday, 21 Dec 2012

Shares went down sharply today amid weak global cues as also profit taking with the NSE-benchmark Nifty plunging by 69 points to close below the psychologically crucial 5,900 mark today. Selling was witnessed in sectors like banking, oil & gas, capital goods, pharma, fcmg, infra, auto and metal. The collapse of the US fiscal talks led to uncertainty and rattled investors confidence, triggering selling across the global financial markets.

On the domestic front, the CBI today filed a chargesheet against Bharti Airtel, Vodafone and former Secretary of the Department of Telecom Shyamal Ghosh for alleged irregularities in spectrum allocation during the NDA regime which further dampened the market sentiment. Bharti Airtel shares tanked by over three per cent to close at Rs 307.35.

Against the backdrop of overnight development in the US and downtrend in Asian peers, trading started on the NSE on a weak note. The key index went down in late afternoon trade in line with overseas market trend to close at day's lowest point. Retail investors reduced their positions ahead of the weekend and upcoming holiday week by booking profits, traders commented. 

The 50-share Nifty nosedived to a low of 5,841.65 before ending at 5,847.70, a sharp fall of 68.70 points, or 1.16 per cent, over the last close. JP Associates, Jindal Steel, IDFC, Sesa Goa, Hindalco, DLF, Ambuja Cement, Bharti Airtel, PNB and Lupin were the top Nifty losers. ITC and TCS were the only index gainers. The turnover in cash segment advanced to Rs 12,063.17 crore from Rs 11,924.91 crore yesterday. Overall, 7,177.22 lakh shares changed hands in 58,57,145 trades. Total market capitalisation stood at Rs 62,29,349 crore.

FII sells 13 lakh Bajaj Finance shares for Rs 163 cr
Foreign institutional investor El Dorado Holdings today offloaded nearly 13 lakh shares of Bajaj Finance for Rs 163 crore. Earlier this week, the FII had sold 5 lakh shares of Bajaj Finance. As per bulk data available with the stock exchanges, El Dorado Holdings II Ltd sold 9,91,500 shares on the NSE and El Dorado Holdings I offloaded 3 lakh shares on the BSE. The shares were sold at an average price of Rs 1,260, aggregating the deal size to Rs 162.72 crore. Meanwhile, HDFC Standard Life Insurance has picked up 6.25 lakh shares in the non-banking finance company for Rs 78.75 crore. As on Dec 11, El Dorado Holdings II Ltd held 16.55 lakh shares, or 3.87 per cent stake, in Bajaj Finance, El Dorado Holdings I Ltd owned 6.07 lakh shares or 1.42 per cent holding in the NBFC firm. Shares of Bajaj Finance fell by 2.9 per cent to close at Rs 1, 264 apiece on the BSE.

Nik's Pick for next fiscal. 

Buy Voltas at - below Rs 100. There is no major trend formed so far, however Voltas has been consistently finding it's support at 100. Must be bought till the time support is maintained. One may easily reap in 10% by the month of February 2013.

Buy Gold (Long Term Prospective).  Gold has delivered positive returns in the last 12 consecutive calendar years delivering 17% CAGR returns which is unprecedented for any asset class. The simple laws of averages suggest that gold in all likelihoods may not deliver similar kind of return which it had delivered in the past. It is better to follow a SIP approach so as to accumulate at all levels rather than investing lump sum at near all time high levels.

Buy Tata Motors at - current levels. JLR has been consistent with its growth and the new products in the pipeline also sounds attractive and worth a buy. However its utility vehicle business has not impressed me and remains a major caution factor. In all JLR would prove to be a driving force hence Tata Motors would be a buy from my end with a target of 5-8% by next year.
Disclaimer:
Stock recommendations and comments presented on the blog are solely those of the analysts and experts quoted. Investors should be cautious about any and all stock recommendations and should consider the source of any advice on stock selection. Various factors, including personal or corporate ownership, may influence or factor into an expert's stock analysis or opinion. All investors are advised to conduct their own independent research into individual stocks before making a purchase decision. In addition, investors are advised that past stock performance is no guarantee of future price appreciation.



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