ONGC,GAIL AND KINGFISHER AIRLINES may witness for today some action

Six years after the $1 billion project was put in cold storage, state-owned Oil & Natural Gas Corporation (ONGC) will by this month-end revive plans to set up a liquid gas (LNG) import terminal near its Mangalore refinery in Karnataka. The 5 million tonne capacity liquefied natural gas (LNG) import facility will be set up through a joint venture of ONGC and BPCL and an international energy firm of repute. ONGC has already initiated talks with the Mitsui Group of Japan of setting up an LNG terminal in Mangalore and the two may also strengthen their partnership by further setting up a gas based power plant in India. Besides, ONGC drilled a well in record water depths using a rig it had hired from Reliance Industries. ONGC's chartered-hired ultra-deep water drillship DDKG1 has set a world record for drilling well in deepest water depth by an offshore drilling rig. The rig DDKG1 has spudded well NA7-1 in exploratory block KG-DWN-2004/1 in east coast India at a water depth of 3165 metres (10,385 feet) on January 23. The rig owned by Transocean surpassed Transocean's own prior record of 10,194 feet of water depth, set in 2011 by DDKG2 working for Reliance Industries on the east coast.

State-owned gas utility GAIL India commissioned a Rs 4,500 crore pipeline carrying gas from the just operationalised Dabhol LNG terminal into Bengaluru that promises to change the energy landscape of the region. The 1,000-km pipeline will feed industries at Belgaum, Dharwad, Gadag, Bellary, Davanagere, Chitradurga, Tumkuyr, Ramanagaram and Bengaluru who have till now been using costlier and polluting liquid fuels like naphtha and diesel as feedstock. Gas will help the state power generation utility save Rs 800 crore annually by reducing cost, improving efficiency and drastically cutting down pollution caused by using liquid fuels. The pipeline will be extended to Mangalore this year and further to Kochi in Kerala by the end of next year. The Dabhol-Bengaluru pipeline has a capacity to carry 16 million standard cubic meters of gas per day.

Realty major DLF aims to cut its net debt by half over the next three years to Rs 10,000-11,000 crore with the help of fresh issue of equity shares, sale of non-core assets and improved cash flows. In order to meet the market regulator SEBI guidelines of minimum 25 percent public shareholding by June 2013, DLF is planning to dilute promoter stake by issuing fresh equity shares in first quarter of next fiscal helping the company to raise over Rs 2,000 crore. The company is also expecting to raise another Rs 2,500 crore after the conclusion of its divestment of hospitality chain Amanresort and part of the wind energy business in this quarter. In December 2012, DLF announced the sale of Amanresorts back to founder Adrian Zecha for about Rs 1,650 crore. Last month, the company announced the sale of part of its wind turbine business in Gujarat to Bharat Light & Power for Rs 282.3 crore. Apart from that, DLF is also in negotiations for sale of its wind turbines in Rajasthan (34 MW), Tamil Nadu (33 MW) and Karnataka (11 MW).

To accommodate further lending to debt-laden Kingfisher Airlines, its group holding firm United Breweries (Holdings) is hiking its loan limit for the ailing carrier from Rs 300 crore to Rs 750 crore. UB Holdings has sought approval from its shareholders to revise the lending limit for Kingfisher and to authorize its board of directors to take necessary actions in this regard. Shareholders of UB Holdings in September 2008 had approved lending funds to Kingfisher to the tune of a maximum amount of Rs 1,500 crore. Later in 2010, the company got approval of shareholders for a revision within this overall limit, pursuant to which the loans for Kingfisher were capped at Rs 300 crore and investments at Rs 1,200 crore. The revision was done to facilitate the conversion of loans given to Kingfisher into convertible/no-convertible securities, as required by the debt recast agreement between the airline and a consortium of its lenders.

Essar Oil believes that with the completion of its Vadinar refinery expansion, the company is poised to match its old rival Reliance Industries' enviable margins from its Jamnagar refinery. In the quarter-ended December, Essar Oil reported current price gross refining margin (GRM) of $9.75 per barrel, as against $2.82 a year ago, compared with Reliance Industries' (RIL) GRM of $9.6 per barrel in the quarter. Essar Oil, a part of the energy conglomerate controlled by billionaire brothers Shashi Ruia and Ravi Ruia, completed the expansion and up-gradation of its refinery last year. The refinery capacity stands expanded to 405,000 barrels per day from 300,000 previously and its complexity has increased to 11.8 from 6.1. Mukesh Ambani-led RIL operates the Jamnagar refinery, which has a capacity of 660,000 barrels per day and complexity of 11.3, as defined by the Nelson Complexity Index.

Tata Motors is planning to introduce a sub Rs 10 lakh version of its Aria utility vehicle to compete with the likes of Mahindra XUV500 and Toyota Innova and to increase its market share in the fast-growing utility vehicle market. There are many new vehicles and models planned by Tata Motors in order to have a dominant position in the Indian utility vehicle market. The utility vehicle market is growing the fastest, rising 57 percent to 4.51 lakh units in the first 10-months of the fiscal. Tata Motors sold 38,000 utility vehicles across brands such as Safari, Sumo and Aria. Slipping sales of Aria has been a cause of concern for the company in a fiscal year in which its overall sales have fallen 5 percent to 271,000 units.

Wipro's India and Middle East IT Business unit - Wipro Infotech has bagged a 10-year contract from Mumbai International Airport (MIAL). As per the contract, the company will provide IT services for the new integrated terminal T2. This partnership will significantly enhance customer experience and satisfaction through the use of IT. Further, the company will be responsible for providing managed services across the entire IT landscape at MIAL and delivering high availability and operational efficiency across all the critical airport processes. With regards to T2, the company will assist in the preparation of IT blueprint and also work closely with MIAL during the testing and trial phase of the IT systems prior to managing all the IT services for the new terminal. MIAL is currently implementing a master plan to build an integrated terminal with a vision and framework to modernize the airport as one of the best airports in the world. After modernization, the new integrated T2 will be able to accommodate 40 million passengers per annum.

Tata Power's 50.4 MW wind energy plant in Gujarat has been registered under the United Nations Clean Development Mechanism (CDM), making it the company's third project to be part of this framework. Located in Samana, the project will come under Clean Development Mechanism of the United Nations Framework Convention on Climate Change (UNFCCC). The Samana project would help in reducing an annual average of 96,821 tons of carbon dioxide equivalent. Another wind project is in advanced stages of CDM registration. At present, Tata Power has 376 MW wind and 28 MW solar energy generation capacities.

Public sector Canara Bank will launch a new version of gold loan that would be as easy as getting a jewel loan from any pawn broker or private finance firms. Besides, there is also a plan to launch new version of property mortgage loans. The two new versions of the loans are pending for approval and endorsement from the risk management team. The bank also has plans to recruit 5,000 staff in the coming years. The staffs are being recruited as the bank planned to increase its number of branches to 5,000 from the present 3,676. Special thrust would be given to the Northeast where 140 more branches would be opened. The number of ATMs also would be increased from 6,000 to 10,000 in the next couple of years. The bank's customer base is 4.6 crore and by March next it would touch five crore. The bank has allocated Rs 32,000 crore to facilitate lending for micro small and medium enterprises.

Coal India,IOC,RIL and Lanco Infratech may grab investor's attention today.

Coal India (CIL), the world's biggest miner, will miss its production target for 2012/13 by 5-6 million tonnes, but will meet its supply target of 470 million tonnes by drawing down from stocks. The production target is 464 million tonnes for the current fiscal year that ends in March. The state-run miner, which produces about 80 percent of India's total coal output, has a stockpile of 47 million tonnes as of today, nearly 24 million tonnes lower than its opening stocks at the beginning of this financial year. Besides, taking forward the process to assess reserves of its mines in Mozambique, the company has invited bids for taking up drilling at the blocks. The development comes at a time when the coal producer is facing problems in enhancing coal production and the country is facing shortage of the fossil fuel.

Indian Oil Corporation (IOC) is expanding its network and will invest Rs 10,000-11,000 crore during the 2013-14 fiscal. IOC would spend Rs 56,000 crore over the next five years on constant price basis in the 12th Plan period. Additionally the company would spend Rs 3,500-Rs 4,000 crore a year on non-plan areas like changing pumps. Meanwhile, IOC has implemented 80-85 of the MB Lal committee's recommendation on safety while it was 72 percent for the entire industry. The company is also planning to engage an independent external agency for handholding support to promote safety culture in the organization.

Lanco Infratech is in talks with strategic and financial investors to sell stake in three power projects separately to raise over Rs 2,500 crore after attempts to sell stake in its arm that owns all the units failed. The shift in strategy comes after almost a year of attempts by Lanco to raise up to Rs 4,150 crore by selling a minority stake in its power holding company to private equity funds or strategic investors. Now, the company aims to raise over Rs 1,500 crore by selling 50-75 % stake in its 1,200 mw coal-fired Udupi power plant. It is also talking to investors to sell stake in its operational 600-mw Amarkantak and under-construction 1,320-mw Babandh power projects to raise a total of Rs 1,000 crore. Lanco Infratech has been struggling to stay afloat as it deals with a staggering debt of Rs 35,500 crore, its inability to recover almost Rs 3,000 crore of receivables from state discoms even as it is forced to run plants at low capacity due to paucity of fossil fuel.

As differences simmer over scope of CAG audit of its flagging KG-D6 fields, Reliance Industries (RIL) has stated that it is not obliged to provide full access to documents relating to years that are not under audit. Disagreements over scope of audit cropped up on the very first day the Comptroller and Auditor General of India (CAG) began the second round of audit of spending on eastern offshore KG-D6 fields with RIL alleging that the auditor was not confirming if the accounts scrutiny would be as per the provisions enshrined in the Production Sharing Contact.

India Cements plans to expand its capacity in Rajasthan with the possible investment of around Rs 650-700 crore to cater to increasing demand in Gujarat and Madhya Pradesh. The present capacity of the plant in Rajasthan is over one million tonnes, and plans are afoot to add one more line with similar capacity. The expansion would help the company cater to the Gujarat and Madhya Pradesh markets. With a total capacity of 15.5 million tonnes, the company has plants in Tamil Nadu, Andhra Pradesh and Rajasthan. The company has been facing challenges operationally, especially on the cost front. Despite of higher power tariff in Andhra Pradesh and Tamil Nadu, hefty power holidays and subdued cement demand, the company was able to post healthy growth numbers.

Auto major Mahindra & Mahindra (M&M) will invest 80 billion Korean Won (about $ 73.73 million) on its Korean subsidiary Ssangyong Motor Company (SMC), through subscription of a preferential allotment. The said preferential offer would result in an increase in the paid-up capital of SMC by 11.9 percent and increase in M&M's stake in SMC to 72.85 percent from 69.63 percent. The said issue would facilitate improvement of the financial structure of SMC and proceeds of the issue would be utilized by SMC for new product development and strengthen its competitiveness. Mahindra had invested a total of KRW 522.5 billion in March 2011 (new paid-in capital increase of KRW 427.1 billion and 95.4 billion in corporate bonds) to acquire 69.63 percent of the equity in SMC.

Homegrown home textile company Welspun India (WIL), part of the $3.5 billion Welspun Group, is looking at raising revenues from the domestic market to 20%, from the current 5%, by 2020. The company is keen to expand to tier II and III cities and towns of India apart from getting to urban markets through shop-in-shops and a strong distribution network, apart from institutional sales to hotels. Welspun has set a target to have 100 shop-in-shops under the brand Spaces every year. Having shot to fame by manufacturing towels for the iconic Wimbledon Championships, the company is keen to associate with events in India. Besides, aspiring to be a $1 billion entity in four years, the company has forayed into new territories. Welspun's major markets are US and EU.

INTRADAY CALLS FOR 13-02-2013

BUY NIFTY ABOVE 5948 SL 5929 TGT1-5964 TGT2-5984 TGT3-6003
SELL NIFTY BELOW 5929 SL 5948 TGT1- 5913 TGT2-5893.50 TGT3-5874

 

BUY BANKNIFTY ABOVE 12460 SL 12430 TGT1-12482 TGT2-12510 TGT3-12537
SELL BANKNIFTY BELOW 12430 SL 12460 TGT1-12410 TGT2-12382 TGT3-12355

 

BUY HPCL ABOVE 329 SL 324 TGT1-333 TGT2-337 TGT3-342

 

BUY MCDOWELL ABOVE 1970 SL 1958 TGT1-1990 TGT2-2002 TGT3-2015

ZEE ENTERTAINMENT ENT LTD

          FROM LAST FEW DAYS I HAVE SEEN CHART OF ZEE ENTERTAINMENT  AND I COME TO KNOW THAT SOME GOOD PROFIT CAN BE GERATED FROM THE STOCK . HERE IS THE CHART OF ZEE THAT I HAVE STUDY,

               IN THIS CHART WE CAN SEE THAT STOCK IS MOVING UP BUT UPTO ONLY THE LEVEL OF 210 AND THE STOCK AGAIN COME UPTO 175 LEVELS. SO AS PER MY THINK ABOUT CHART IS THAT STOCK TOUCH 1ST HIGH AND THAN COME DOWN UPTO 175 TO 180 LEVELS AND AGAIN MOVE UPTO 210 LEVELS. BUT KNOW THE STOCK IS OVING IN THE LEVEL OF 190 TO 200 AND I THINK THAT ONCE STOCK CROSSOVER 210 LEVELS THAT IT WILL TOUCH 250-260 LEVELS IN SHORT TIME .BECAUSE ITS DOUBLE TOP CROSS.

                 AS PER THE CHART ONE SHOULD BUY AT THE LEVEL OF 190 TO 195 LEVEL FOR THE TGT OF 250-260 IN MONTH AND WITH THE STOPLOSS OF 175 AS SHOWN IN CHART RED LINE.

AFTER A LONG BREAK WE ARE BACK !!!!

         EVERYONE IS WAITING THAT WHAT HAPPENS WHY THERE IS NO POST BUT I HAVE MY SOME PERSONAL WORK THAT 'S Y I WAS NOT AVAILABLE BUT WE ARE BACK. AND IN THIS TIME OF VACATION I HAVE SEEN THAT MARKET IS MOVING UP AND DOLLAR IS GOING UP ALSO. THAN WHAT WILL HAPPEN IN MARKET , LET SEE ONE SHOULD WAIT AND TRADE SLOWLY IN MARKET UPTO PARLAMENT SESSIONS ONLY.

    BUT ON CAN BUY TV18 BRODCAST CMP 35 TGT ?????      FOR A MONTHS.

MARKET BY G.S.ROONGTA

MARKET REVIEW IN BRIEF

BSE Sensex & CNX Nifty rises slowly and gradually inching up towards 19k and 5800 for the time being. There is a stock specific action.

Those stocks which have already rose substantially under cement, AUTO, FMCG, Pharmacy and Banking have sidelined now.

While other sectoral stocks are being fancied. Tata Global was star performer on 3^rd October to hit Rs 154.

          On 3^rd October I had recommended GULSHN POLYO as Rs 68 which hit Rs 78, yesterday gaining Rs 9 or 15% in a single day which speaks the liking & worthiness in my recommendation being viewed by the view of this site.

Cement stocks rally have slowed down after a good rise, yes India cement and keshoram stock going dirt cheap even at current market price.

STEEL AUTHORTIY OF INDIA LIMITED (S.A.I.L)

SAIL is a world class corporation and a leader of Indian Steel business boil in productivity & quality and inspiring to match in profitability too in year to come.

          SAIL is having several steel plants mainly in eastern parts of the country such as bhilai, IISCO, Rourkels, Bokaro, Durgapur and Jamshedpur with backward integration of ore & coal mining power etc. Its product profile is numerous which is used in construction/infrastructure/industry and in every walk of human life.

SAIL hit a life time higher sales target of over Rs.50, 000 Cr followed by with net Profit of Rs 3543 Cr slightly lower than its previous yr due to global and domestic recession in 2011-12.

          SAIL has ambitious CAP EX plan of over Rs 40, 000 Cr including Rs 14500 Cr already spent till 2011-12 and rest of which to be spent in next 2 yrs without much borrowing. Most of the funds is targeted to come out of internal accruals & equity route which is quite evident from its comfortable debt/equity ratio.

          Imagine what would be the SAIL outlook after 2 yrs once its  CAP EX plans will be completed. It would really be mind boggling which is difficult to express in words now.

          SAIL stock is currently traded at Rs 87 below its book value and is worth to buy and have this precious jewel in your cap from long term point of view.

          When, MRF the largest in tyre segment can hit over Rs 10, 000 Cr & Asian pain can be traded at Rs 4000 why SAIL should not cross 500 in 2 yrs and Rs 1000 in 5 yrs.

          Lastly, It may be recalled that SAIL stock had hit Rs 250 mark in 2009-10.

MARKET BY G.S.ROONGTA

MARKET REVIEW IN BRIEF

The Market continued to be quiet cautions on account of F&O expiry on 27^th Sept 2012. Bulls that are reported to have booked profit have carried forward small position to October expiry helping the market not to face much volatility.

          Global cues were seen positive with Asian, European & Dow Jones future continued to be in positive direction.

          Cement Stock have been out performer on 27/9/12 with almost majority of stocks gained between 10 – 20%.

          India Cement as observed by me in my yesterday recommendation also gained to high of Rs 98.

          The Market in general performed well as far as stock specific action was concerned.

KESHORAM INDUSTRIES LTD

The Company belongs to Mr. B.K.Birla group having large capacities in cement tyres & textile. The textile unit was demerged which is closed ever since a decade.

          Cement is doing well followed by Tyres unit the company’s cement & tyre performance in the year 2011-12 was not much impressive which resulted the stock price of keshoram Ind to fell from high of 400 two years back to below Rs 100 recently.

          Since cement companies are performing well and in-view of this keshoram Ind should also not lag behind as its share price is currently subdued as Rs 138 which looks highly underpriced and may spurt any time once investor’s attention is attracted towards this stock on it’s highly competition business in cement & tyres.