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Rally on Indian markets despite mixed queues from rest of the world

September 2nd, 2011

The Indian stock markets missed the usual trend and has closed the day in the green despite its Asian and European peers are in the red. Sensex gained 144 points to close at 16.8k while the Nifty tested 5050 and had managed to close above the 5k mark.

Nifty toppers of the day include Reliance Comm and Rel Capital (both up over 6%), DLF (up 5%), Tata Steel and Sterlite Ind (up over 4%) and Mah and Mah, Reliance Infra and Bajaj Auto (all up over 3%) each. IDFC, HCL Tech, Tata Power and PNB are amongst the top losers.

Everonn Education  (BSE: 532876; NSE: EVERONN; ISIN: INE678H01010) saw heavy selling today after news of CBI arresting its MD P Kishore and Additional Commissioner of Income Tax in Chennai, Andasu Ravindar in a bribery case.

Lupin (BSE: 500257; NSE: LUPIN; ISIN: INE326A01037) surged Rs. 19 today and the stock closed the day at Rs. 467.60. There was news that an arm of Lupin and Sanofi Aventis has signed a marketing and distribution pact.

Kotak Institutional Equities has given a SELL call for Reliance Communications with a target of Rs. 80 down from a target of Rs. 95. RCOM’s stretched balance sheet, increased debt (almost 3x from FY 2008 most of the funds of which went to the GSM roll out which is yet to give the desired results and the weak competitive positioning has lead to the deterioration of the script.

Edelweiss says that Coal India’s pricing power can offset its hurdles like wage revision and the implementation of mining tax. They feel that the environmental issues will get resolved by FY2014 which will turnaround the production capacities and hence is a good long story. The script has a target of Rs. 460. JP Morgan has put a September 2012 price target of Rs. 345 valuing the company at 7x FY13E EV/EBITDA.

Entry Filed under: Equity Markets, Telecom, Closing Bell, Metal, Education