Tag Archives: BHEL

Stock Market Analysis – 12 March 2011

Market mood was negative on account of Japan Earthquake and ongoing unrest in Libya and middle east region and constant threat of spike in crude oil prices.

In the week closing 11 March 2011, the Indian stock Index S&P CNX Nifty traded in a tight range of 5560-5410. Nifty closed in red in three out of five trading days. Week-on-week basis, the Sensex was down by 312 points or -1.7%, to close at 18174.39 levels. The Nifty also closed in the red down by 93 points, or 1.7%, to close at 5445 for the week. Metals, Capital Goods and Banking stocks were the major losers, with heavy weights like Tata Steel, L&T, BHEL, State Bank faced selling pressure, where as Reliance Industries and Reliance Capital were the major gainers. Food inflation for the week ended Feb 26, 2011 was 9.52% (v/s 10.39% last week). IIP numbers were positive in India. In Feb 2011, exports were $23.6 bn (49.8% growth YoY) while imports were $31.7 bn (21.2% gr wth YoY). IIP nos for Jan 2011 came at 3.7% (street estimates: 2.7%) while the December IIP was revised from 1.6% to 2.5%. Continue reading Stock Market Analysis – 12 March 2011

Reliance Communications: Reduce Weightage -21Nov2010

Reliance Communications (RCom) is in a problem with its alleged involvement in the 2G spectrum scam. RCom is already undervalued but this latest problem can put pressure on the stock. This past week saw 10% drop in RCom’s stock, and based on new facts that came to light in last 2-3 days, we have reduced our holding in RCom. Its possible that RCom can fall another 10% from current levels to around Rs 130-135.

Thankfully, many other good stocks have also fallen 10% in the week, giving us an ideal shifting opportunity. Our top picks to make the shift are: BHEL and Tata Motors at current prices. Both these stocks are likely to continue delivering good profits and have no regulatory overhangs like in RCom. Once the air around RCom clears, then we will reconsider entering this stock.