01-SEP-17

INDIAN STOCK MARKETS=SEPTEMBER SERIES DAILY STUDY REPORT

US MARKETS: DOW UP 58 POINTS NASDAQ UP 60 POINTS

EUROPE: DAX CLOSED IN POSITIVE WITH 50 POINTS, BUT RECOVERED 0.7% OF THE FALL (-177) IN TWO DAYS

ASIAN MARKETS: MILDLY POSITIVE

SGX NIFTY CURRENTLY SUGGESTING: + 3 POINTS

MACRO ECONOMIC NEWS: Q-1 GDP IS @ 5.7% IS CONTINUOUSLY DECLINE TO TOUCH 3 YEAR LOW

CORPORATE EARNING ARE OK BUT THEIR INVESTMENTS ARE NOT COMING DUE TO BAD DEBT ISSUES, IS LIMITING THE GROWTH EXPANSION

COMPANY SPECIFIC NEWS:

DR REEDY GOT FAVOURABLE NEWS

RANBAXY SINGH BROTHERS ISSUE EFFECT FORTIS, ALREADY LOST 5.44% YESTERDAY.

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IMPORTANT DISCLAIMER:

STOCK TRADING IS A HIGH-RISK VENTURE AND TRADERS ARE THE MOST TO LOSE. IT DEMANDS CALM MIND AND PSYCHOLOGICAL BALANCE. IT IS A CHALLENGING JOB DUE TO PRECISION IN TIMING & LIMITED CAPITAL AVAILABLE WITH RETAIL TRADERS.

SO ALWAYS CONSULT YOUR EXPERT ADVISOR AND ALSO MAKE YOUR STUDY TO GET SUCCESS.

NOT TO DISCOURAGE BUT REQUEST PARTICIPANTS TO TIME & ENERGY TO EMPOWER THOSE MOST REQUIRED QUALITIES.

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POSSIBLE ACTION AS PER MY STUDY: CONSIDER FOR EDUCATION

NIFTY:SUPPORT: 9885 & 9856 and RESISTANCE:  9946 & 9972

BANK NIFTY: SUPPORT: 24230 & 24185 and RESISTANCE: 24490& 24560

RELIANCE: SUPPORT:1576, 1572 and RESISTANCE: 1606-08         

AXIS BANK: SUPPORT: 494-92 and RESISTANCE:  506-08, crosses 516-18 in due course.

YES BANK: SUPPORT: 1732-28 and RESISTANCE: 1758-62, 1773          

RELCAPITA SUPPORT: 801-03 and RESISTANCE: 816-21, stock is very strong may touch 860, may consider a buy from 782-78

REL INFRA: SUPPORT: 491-89 and RESISTANCE: 516-18            

CENTURY TEX: SUPPORT: 1208-16 and RESISTANCE: 1248-52, likely to cross yearly highs soon, no shorting advisable.            

TATASTEEL: SUPPORT: 524-26  and RESISTANCE:  542-44          

VEDL: SUPPORT: 303 &301 and RESISTANCE: 314 huge investment plans.

NIFTY AUGUST SERIES

INDIAN STOCK MARKETS = AUGUST MONTH STUDY REPORT

TOADY F&O AUGUST SERIES CLOSING DAY LAST ONE HOUR MADE A BIG DIFFERENCE FOR BULLS TO COVER THE LOST GROUND FROM A LOW 9857 TO 9925, A SERIOUS RISE OF 68 POINTS.

THE SERIES LOST 108 POINTS AND THE BANK NIFTY LOST 625 POINTS. MONTHLY AVERAGE OF NIFTY 9934 AND BANK NIFTY MONTHLY AVERAGE 24508. BANK-NIFTY LOST MORE THAN NIFTY.

THIS MONTH THE RESULTS SEASON INFLUENCED IN STOCK ACTION AND INFY BOARD AND PROMOTORS TUSSLE CAUGHT THE HEADLINES.

PSU BANKS TOOK A SERIOUS BEATING AT LARGE DESPITE OF THEIR OVERALL IMPROVED ASSET QUALITY, DUE TO WHICH PSU BANKS ARE SUFFERING FROM RBI’s LATEST DIRECTIONS ON BAD ASSETS THOSE ARE REFERRED TO NCLT.

JULY CLOSING TO AUGUST CLOSING:

PHARMA SECTOR LOST MORE THAN THE REST- DR REDDY (-22.3%), AJANTHA PHARMA (-15%), GLENMARK (-14.9%), SUN PHARMA (-16.0%), STAR (-16.0%), BIOCON (-15.5%), LUPIN (-11.1%), CADILA (-7.5%), APOLLO HOSPITALS (-16.5%)

PSU BANKS LOST MOST BANK OF BARODA (-15%) BANK OF INDIA (-7.25%) UNION BANK (-12.5%) CANARA (-3.75%), PNB (-6.5%) AND SBI (-7.25%).

THE RISE HAS BEEN VERY DECENT IN GEMS& JEWELLARY, METAL& MINING, OIL AND ENERGY SECTOR ESPECIALLY IN OMCs DEDPITE OF NIFTY FALL.

HIND PETRO (+33.3%), BPCL (+11.3%), IOC (+23.10%),  CHENNAI PETRO (15.5%), MRPL(+14.85%), PC JEWELLARIES (+44.5%), TITAN (+16.3%), CESC(+13.10%), CONCOR (+13.3%), VEDL (+10.3%), TATA STEEL (+10.3%), JSW STEEL (+18.1%),

TATA GLOBAL (+17.5%, RELCAPITAL (+21.75%), UJJIVAN (+10.5%), LT FINANCE (24.0%), GRASIM (+11.5%), PETRONET (+10.50%),

THE BEST BUYS AND THE WORST TRAPS

JOURNEY FROM SEPTEMBER 2015TO CURRENT DATE : 03-04-2017

THE BEST BUYS AND THE WORST TRAPS

1.    DISHMAN PHARMA:  FIRST IDENTIFIED AT 63-68 RANGE MISSED, LATER BOUGHT AT 118 LEVEL THAT DAY FELL TO 106 SOLD AT 114-15 LEVELS

TODAY AT @Rs 323 WITH 1:1 BONUS, ONE LAKH INVESTED NOW 5.38 LAKHS

2.    KMC HOSPITALS: BOUGHT AT Rs 3.8 SOLD ARROUND RS 8 WITH IN 6 MONTHS

TODAY AT @Rs 13.5 WITH HIGH @ 16.4,; ONE LAKH INVESTED NOW 3.5 LAKHS

3.    RANA SUGARS BOUGHT AT 4.11 SOLD ARROUND RS 9 TO 11.2 WITH IN 6 MONTHS

TODAY AT @Rs 10.35 WITH HIGH @ 17.67,; ONE LAKH INVESTED NOW 2.5 LAKHS

KM SUGARS ( PERSONAL LEVEL BOUGHT AT Rs 1 TO 1.25 SOLD AT 5.37 TO 7.8 THEN AGAIN CAME DOWN TO 1.8-2.2 LEVEL NOW TOUCHED A HGH Rs 37.5 CURRENT RATE 29.3)

4.    HIMALAYA INTERNATIONAL: BOUGHT AT Rs 7.8 SOLD AT 11 & 12 

TODAY AT @Rs 29.95 WITH HIGH @ 29.95; ONE LAKH INVESTED NOW 3.8 LAKHS

5.    BURNPUR CEMETS: BOUGHT AT Rs 9.0 SOLD ARROUND Rs 13-14

TODAY AT @Rs 11.65 WITH HIGH @ 17.5 ; ONE LAKH INVESTED NOW 1.3 LAKHS

6.    UDAIPUR CEMENTS BOUGHT AT Rs 11 SOLD AT 18 

TODAY AT @Rs 34.95 WITH HIGH @ 34.95; ONE LAKH INVESTED NOW 3.0 LAKHS

7.    PANYAM CEMENTS BOUGHT AT Rs 58 AD AT 50 SOLD AT 67 & 72

TODAY AT @Rs 83.5 WITH HIGH @ 88.95; ONE LAKH INVESTED NOW 3.0 LAKHS

8.    SANGHI IND BOUGHT AT Rs 57.8 SOLD AT 62&64

TODAY AT @Rs 70.75 WITH HIGH @ 90.75; ONE LAKH INVESTED NOW 1.2 LAKHS

9.    RAIN INDUSTRIES BOUGHT AT Rs 27.8 SOLD AT 32 AND 34

TODAY AT @Rs 110.75 WITH HIGH @ 114.65; ONE LAKH INVESTED NOW 3.8 LAKHS

10.BALASORE ALLOYS BOUGHT AT Rs 24.8 SOLD AT 26.8 

TODAY AT @Rs 70.75 WITH HIGH @ 77.20,; ONE LAKH INVESTED NOW 3.08 LAKHS

BREXIT FEARS:

NFL BOUGHT AT Rs 27.8 SOLD AT 32.8

TODAY AT @Rs 75.5 WITH HIGH @ 80.95; ONE LAKH INVESTED NOW 2.8 LAKHS

HIMADRI CHEMICAL BOUGHT AT Rs 16.8 SOLD AT 24.8

TODAY AT @Rs 47.5 WITH HIGH @ 49.5; ONE LAKH INVESTED NOW 2.8 LAKHS

PILITALICA BOUGHT AT Rs 3.8 SOLD AT 6.8

TODAY AT @Rs 14.13 WITH HIGH @ 17.8; ONE LAKH INVESTED NOW 3.68 LAKHS

DEMONITISATION FEARS:

HARISSON MALAYALAM BOUGHT 60 SOLD AT 62.8

TODAY AT @Rs 83.75 WITH HIGH @ 95.6 ONE LAKH INVESTED NOW 1.4 LAKHS

JAYSREE TEA BOUGHT 106 SOLD AT 113

TODAY AT @Rs 110.0 WITH HIGH @ 121.5 ONE LAKH INVESTED NOW 1.04 LAKHS

DIANA TEA BOUGHT 16.80 SOLD AT 22.8

TODAY AT @Rs 21.75 WITH HIGH @ 29.65 ONE LAKH INVESTED NOW 1.3 LAKHS

GOODRICK TEA BOUGHT 176.80 SOLD AT 182.8

TODAY AT @Rs 278.60 WITH HIGH @ 306.75 ONE LAKH INVESTED NOW 1.63 LAKHS

IDENTIFIED, WAITED AND MISSED

1.    INDIA CEMENTS IDENTIFIED @ AT Rs 80.0 NOW AT 164

2.    JINDAL STAINLESS IDENTIFIED @ AT Rs 20.0 NOW AT 77 (BOOKED NOMINAL LOSS)

TEHE WORST TRAP OR BAD LUCK AVON LIFE SCIENCES BOUGHT AT 46 AGAIN AT 36 AND AGAIN AT 28 NOW AT 7.5 ONLY

THERE ARE MANY GOOD POSITIONS RUNNING AND SOME GOOD POSITIONS BOOKED….

TRADING DISORDERS - STOCKMARKETS

STOCK MARKET-TRADING AS A PROFESSION:

Professional experts consider " STOCK Trading" is an effective tool to make money on the volatility but amateur retail TRADERS get caught on the wrong foot due to emotional imbalance and lack of understanding of the "Game Plan" involved.

The Online Trading opened many windows of opportunities to retail investors. Many traders prefer Day trading in stock markets as a profession because of the underlying opportunity to make money is huge. The online screens exhibit the trades with rise and fall of the prices in ticker and the colors that stimulate emotions to Buy or Sell instantly to grab the opportunity. The emotional "Greed and Fear" attached to the position when built, generate anxiety and turbulence in the mind and get confused to take right decisions at the right time.

COMMON TRADING DISORDERS:

The Institutional and professional investors wait for the right time to go for shopping in stock markets whose investment research enhances better decision-making process with RIGHT perspective in STOCKS that can do well in future, improve their balance sheets at revenue front & profits part and market capitalization. The Investment decisions in stock markets considered both on Scientific research and Art part is recognizing the “TIME to INVEST”. They have the holding capacity as well loss-bearing capacity and may sometimes write off the loss and search afresh in other stocks.

RETAIL TRADER CHALLENGES:

I)Revenge Trading:

Revenge Trading is a very common practice and done to make money from that counter/scrip. The force of revenge gets generated in the mind as a consequence to the loss incurred due to hasty decisions made in the market volatility. The trader gets emotional rage to the foolish position made and a humiliating failure to enjoy profits triggers retaliation. Many losers as traders do trade with induced insults met and previous wounds stored, strike back with vengeance, also addicted to trade with vigor to prove that they are right and worthy.

The traumatic losing deals are painful and hard to digest. The failure to take right decision bug the mind, pressure build beneath the layers over a period of time. The frustrated mind call for a revenge and retaliation to cover losses from that stock triggers Revenge Trading (study the “Rouge Trader”, a true story of Nick Leeson).

The human Psychology Research Institutes state that the pre-frontal cortex the amygdala responsible for emotional reactions controls the decisions that the trader makes when encountered with an emotional reaction and also regulates the anxiety that shoots up once substantial positions are taken up.

II)Coercive Trading:

Coercive Trader with animal instincts, rule the mind and heart with EGO-centric approach become blind to accept reality, do trade with little reasoning. These traders ignore the warnings, think little on what is being done at the trading, blindly build positions and their ultimate consequences are well known to many.

Most of the times, many traders who lost their control over their positions “pray for the wish” to happen and keep on buying when the price is falling and keep on selling when the prices are rising with coercive nature and argumentative mind. Any size of position against the major trend is a drop in the ocean and simply trying to demand the ticker to do the opposite never happens, seldom prayers get respected those who ignored “The Reality”. This kind of approach even ruined Jesse Livermore (the greatest trader, read the book “ The Reminiscences of a Stock Operator”)

Emotional Compulsive Trading:

Stock trading is a dangerous game for Traders with high emotional attitude get attracted to the magic of Ticker, can become a prey to the market operators. Emotionally disturbed trader lack the situational judgmental mindset, is a Noise Trader (the term first used by Fisher Black in 1986) who is also known a Idiot Trader whose decisions to buy and sell are irrational, confusing, erratic and become a compulsive trader to keep on punching BUY or SELL, doesn’t consider the direction but involves in push and pull off the volume into the system. Needless to mention the results of these traders, may not survive in trading for a long time.

UNDERSTAND GREED AND FEAR:

Professional/seasoned traders get the gut feel, place entry and exit points with a well-defined plan in tune with markets movements. The small-time retail players make their decisions based on some advice, find difficult to deal deep-rooted greed to make instant money in the volatility and fear of further loss influence their decisions but not the rationale, end up winding the capital base. These traders get success less than 5 percent but more than 90% get addicted, continue to create problems to their accounts.

Catch a ROPE:

Result Oriented Planned Efforts-ROPE for better returns as a principle for investing, a well-thought strategy. Market participants unanimously agree that TIMING the bottoms and highs in Stock-Market, a very difficult task anybody can ever achieve. So Institutional investors find their Buying Zones and Selling Zones, instead merely focus on exact right Bottom to BUY and Right High to SELL, whereas retail investors get tempted to CATCH the opposite side for quick bucks, end up in losing wealth.

CONCLUSION: Stock trading is a big opportunity to make money. By the way, understand trading disorders, risks, traps and emotions involved to manage success in stock markets.

A planned approach helps to garner the opportunity and wealth can be created as well. 

TRADE the PRICE

THE VERY FUNDAMENTAL ASSUMPTION OF STOCK INVESTMENTS (for that matter any investments) ARE TO MAKE MONEY WITH SUITABLE PORTFOLIO OVER A PERIOD OF TIME. MANY RETAIL INVESTORS QUITE OFTEN FAILED TO RECOGNIZE THE BASIC RISKS INVOLVED AND ALSO IGNORE THE FUNDAMENTAL RULES TO BE STRICTLY FOLLOWED TO MAKE MORE MONEY FROM THE STOCK MARKETS.

Ace Investor Ideology:
Every Investor bestowed with equal opportunities to make lots of money from stock market investments provided the right approach to markets like an institutional investor does. No matter how big or small money available for investments, doesn't matter whether BUY a small-cap, mid-cap or Large-cap but the approach to investments in markets makes a person rich or multi-millionaire.

Most of the stock market retail investors follow their legendary investors stock investments. It is not wrong to follow a successful investor's ideology but what matters most is the suitability to one's needs and requirements. So always understand the concepts of an Ace Investor strategy & sector allocation then develop a workable strategy that suits well but don't just follow blindly.

Who Rules...?
The Stock price action gets activated from Low to High and High to Low due to a determined tussle between BULLs & Bears that enables smooth transfer/exchange of VOLUME to acquire/offload the stock. During good times BULLs command the most, while BEARs take charge when gloominess runs but the underlying attraction point that turn tables is neither Bulls nor Bears but the PRICE. The STOCK PRICE attracts the interested parties to become BULLS or BEARS to command and enjoy the future returns. The possibility and future prospects propel the participants to decide their position and sustain their view till the PRICE reaches its realistic value.
Trade the Price:
Stock trading/investments open the doors of opportunities to many players like Day-traders, Swing traders, Positional traders, retail/small investors & Institutional investors..etc with a bouquet of investment opportunities in different companies in various sectors. The growth stocks always build their strong base during the times of bad periods/recession time and emerge as winners and find pinnacle place as tide turns their favour with a tag as most sought/favoured stocks. It is always advisable to "Trade the Price" to make more money from markets even in multi-bagger stocks once the valuations reach very high. In case the overall market take a Southward journey, these counters also deserve a trade but don't exit from the stock. This situational position sizing and building the portfolio is very important to enjoy long-term multifold returns. (Ex: Recently Rakesh Jhunjhunwala sold Delta Corp at Rs 160+ levels range and re-entered @ Rs105+)

Build Capacity to Hold:The capacity to hold with large quantities for a reasonable period makes a big difference in enjoying the multi-bagger stocks upward journey. Many seasoned investors know that the Elliot principle plays a big role and most retail investors get out of the stock during the first leg of the up move or in the retracement levels.

Many successful investors who learned hard lessons from their experiences shared the importance of Position sizing. Their initial investment experiences are bitter to digest and some blew their accounts with an anticipation to make HUGE profits in short period, turned sour. The psychological exuberance while buying blue-chips and excitement to hold large quantities of quality stocks for multi-bagger returns encouraged them to ignore current high valuations. All the more, got trapped in LEVERAGE loop, find it hard to hold for a longer period during the downfall forced them to exit for a loss or nominal profits from that possible multi-bagger counters. These experiential situations are common to many investors.
MULTI-BAGGER INVESTMENT STRATEGY:
NO-DOUBT, STOCK-MARKETS ARE ONE OF THE BEST AVAILABLE AVENUES FOR INVESTMENTS TO SMALL INVESTORS TO LARGE INSTITUTIONAL PLAYERS. THE STOCK-MARKET INVESTMENTS MADE IN MULTI-BAGGER COMPANIES, MANY A TIMES REWARD INVESTORS WITH MANY FOLD RETURNS TO THOSE WHO “SPOT THE RIGHT OPPORTUNITY AT THE RIGHT PRICE” AND POSITION THEIR INVESTMENTS ACCORDINGLY.

The multi-bagger companies carry a unique business model with high-end products&services and less competition "Buyer Requests & Seller Demands" mode.Ex: 8K Miles (Rs 18 Low in 2012,Rs 2550 High in 2016)

Once, a well-established company ran into doldrums with underutilized capacities, later get a new drive, turn-around story with better economic prospects to garner the unfolding opportunities. Ex: INDO COUNT INDUSTRIES (Rs 5.0+ Low in 2012,Rs 1248+High in 2016)

• Management rejuvenates their entire team with positive energies to increase revenue and profitability with 20-35% QoQ growth.
• The stock hardly falls from the consolidated floor price range gained in its upward journey

Conclusion: There are many good stocks available in Indian stock markets to become multi-baggers in next 3-5 Yrs. It is very important to identify good stocks to BUY and Hold, but at right price is even more important.

Rs 2.5 TRILLION DEFENCE ORDERS!!

Manohar Parrikar says orders worth Rs2.5 trillion placed for modernization of defence sector

Defence minister Manohar Parrikar says defence budget is currently about 1.65% of GDP and he would like it to be 3% but it wouldn’t happen overnight

New Delhi: Defence minister Manohar Parrikar on Friday said that orders worth nearly Rs2.5 trillion have already been placed to modernize defence forces under his tenure and this figure would soon touch Rs3 trillion.

 Speaking at the Hindustan Times Leadership Summit, Parrikar said there was a backlog of defence orders worth Rs583,000 crore, some of them pending for over 10-12 years. 

 He said many of these are being cleared but he cannot order as per will as defence budgets are to be taken into consideration. Typically anything brought has costs spread over 5-7 years or more. 

 The military budget is currently about 1.65% of the gross domestic product and Parrikar said he would like it to be 3%, but he conceded it would not happen overnight. 

 India has become the world’s fourth largest spender on defence, following a 13.1% increase in its 2016-17 defence budget, according to US research firm IHS Inc. 

 India’s rise in the rankings from sixth position last year is a result of an increase in expenditure to $50.7 billion, combined with cuts to military spending by Russia and Saudi Arabia, where low oil prices have put considerable strain on their finances. 

 According to a report released by PricewaterhouseCoopers Pvt. Ltd, India ranks among the top 10 countries in the world in terms of its military expenditure and import of defence equipment—only 35% of defence equipment is manufactured in India, mainly by public sector units. 

  Parrikar said his target is to bring greater synergies and understanding between the armed forces and defence ministry over the next six months in matters related to procurement and what is required by the forces.

 The defence minister also said that the surgical strikes in Pakistan-occupied Kashmir by the Indian Army had introduced a "principle of uncertainty" in the minds of the adversary and did not rule out more such strikes. 

  “The surgical strikes have introduced a degree of uncertainty... obviously, uncertainty itself creates decision-making bottlenecks. You will never know them,” the defence minister said. “It was a continuous insult to be treated like this... Someone comes, hits us and we can’t do anything.”

 Asked if India could carry out more surgical strikes, Parrikar said the “principle of uncertainty” should be allowed to operate. “It will be beneficial to all of us.” 

 On an attack in Nagrota that left seven soldiers dead on Tuesday, Parrikar said it was obvious that “some sort of lethargy” had set in over a period of time and it was “painful to see soldiers die.” 

 "We have to thing out of the box," Parrikar said on how to secure our military installations from more terrorist attacks. He said help of agencies like DRDO was being taken. DRDO has been asked to look into various kinds of high tech fencing.

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http://www.livemint.com/Politics/EpJSaDBGYECi221Ul4OYqL/Manohar-Parrikar-says-orders-worth-Rs25-trillion-placed-for.html

GDP grows 7.3% in Q2 on rise in farm output

NEW DELHI, NOVEMBER 30:  

Aided by a bump up in agricultural growth, the economy grew at a higher-than-expected 7.3 per cent in the second quarter. This is higher than the 7.1 per cent growth recorded in the previous quarter.

The latest second-quarter GDP growth was, however, much lower than the 7.6 per cent growth in the same quarter last fiscal.

Agricultural output growth came in at 3.3 per cent for the quarter under review against 2 per cent in the same quarter last fiscal. The first quarter had seen a agricultural growth of 1.8 per cent.

Manufacturing growth slowed to 7.1 per cent against 9.1 per cent in the first quarter, mining was down 1.5 per cent against a 0.4 per cent fall in the first quarter. Construction was up 3.5 per cent (1.5 per cent).

In services, the ‘trade, hotels, transport and communication’ group was up 7.1 per cent, while financing rose 8.2 per cent. Public administration and defence was up 12.5 per cent.

Today’s GDP numbers do not reflect the effect of the Modi-led government’s sudden demonetisation move of November 8. The impact of demonetisation is widely expected to hit economic growth in the third quarter. The decline in economic activity is expected to lower corporate sales volumes and cash flows, according to experts.

Moody’s Investors Services said the recent demonetisation move would weigh on GDP growth for a few quarters, dampening government revenues.

Fiscal deficit

The Centre's fiscal deficit for the April-October period came in at ₹4.2 lakh crore against ₹4.1 lakh in the same period last year. This reflects 79.3 per cent of the annual target of ₹5.34 lakh crore.

Revenue deficit for the period stood at ₹3.28 lakh crore (₹2.87 lakh crore in the same period last year).

http://www.thehindubusinessline.com/economy/economy/article9402420.ece?homepage=true

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THE FUTURE TWO-QUARTERS WILL SEE TEPID GROWTH AS HEAD-WINDS FROM US-FED AND DEMONITISATION AFFECTS.

THE CORPORATE CAPEX/EXPANSION PLANS ARE SLOW AND THE RECOVERY HAPPENED IN STEEL DUE TO ANTI-DUMPING MEASURES AND CEMENT GROWTH DUE TO ROAD/HIGHWAY CONSTRUCTION WORKS.

Sharon Bio-Medicine

Broker’s call: Sharon Bio-Medicine (Buy)

December 8, 2014:  

IndiaNivesh Sec

Sharon Bio-Medicine (Buy)

CMP: ₹50.60

Target: ₹140

USFDA approval — a key near term trigger: Sharon Bio-Medicine (SBML)

 has completed the capex of ₹90 crore at its Uttarakhand formulation 

facility. SBML received the UKMHRA approval for existing as well as 

expanded facility. The USFDA inspection is expected to happen anytime 

soon. The positive outcome would enable SBML to start selling in the US 

market on considerable scale. This would also enhance profitability of 

SBML. However, given the uncertain nature of review of USFDA 

inspection, we have not yet built any upside from business in US market

 from this facility.

The stock has corrected by 40 per cent in the past three months on absolute basis. Though the business continues to be normal and stock has become attractive in terms of valuation, we suggest investors to wait for the results of key near-term trigger — USFDA inspection and its subsequent assessment to review the investment decision. At CMP, the stock is trading at 5.2x FY15E EPS of ₹9.9 and 3.7x FY16E EPS of ₹13.9. Currently, we maintain our estimates and continue to value SBML at 10x FY16E earnings to arrive at the price target.(This article was published on December 8, 2014)http://www.thehindubusinessline.com/markets/stock-markets/brokers-call-sharon-biomedicine-buy/article6673433.ece

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THE STOCK IS SLIDING AND THE FINANCIALS ARE BLEEDING BUT DESERVES A WATCH, MAY SEE UPMOVE AFTER JUNE RESULTS-2016

RENEWABLE ENERGY- PROMINENCE !!

India, China led investments in renewable energy in 2015: UN
Press Trust of India/United Nations 26 Mar 16 | 01:02 PMIndia and China led developing countries in investments made in renewable energy in 2015, when for the first time commitments in solar, wind and other renewables capacity by emerging economies surpassed those by wealthy nations, a UN-backed report has said.The report 'Global Trends in Renewable Energy Investment 2016' by the UN Environment Programme said the developing world including China, India and Brazil committed a total of $156 billion in new renewable capacity last year, up 19% on 2014.Investments by developed countries were down 8%in 2015 to $130 billion.The year 2015 was the first time when investment in renewables in developing countries outweighed that in developed economies, the report said.A large part of the record-breaking investment in developing countries took place in China, which lifted its investment by 17%to $102.9 billion, more than a third of global commitments.India was also among the top 10 investing countries in renewable energy, with its commitments rising 22% to $10.2 billion.The US, Japan, UK Brazil, South Africa, Mexico and Chile all made it to the top 10 investing countries in 2015."The investment (in India) took place against a backdrop of pro-renewable policies introduced by India's BJP government. These include a target to almost- triple wind capacity to 60 GW by 2022," the report said.Within the developing-economy category, the "Big Three" of China, India and Brazil saw investment rise 16 %to $ 120.2 billion, while other developing economies enjoyed a 30 %bounce to $ 36.1 billion.Among developed countries, investment in Europe was down 21%, from $62 billion in 2014 to $48.8 billion in 2015, the continent's lowest figure for nine years despite record investments in offshore wind projects.The US was up 19%to $44.1 billion, and in Japan investment was much the same as the previous year at $36.2 billion.The report said India enjoyed a second successive year of increasing investment, breaching the $10 billion for the first time since 2011.It added that the highlight of India's performance in 2015 was a jump in utility-scale solar financings to $4.6 billion, up 75%on the previous year, although still a little below the 2011 record of $4.9 billion.Among the big projects getting the financial go-ahead were the NTPC Kadiri PV plant phase one, at 250 MW, and the Adani Ramanathapuram PV installation, at 200 MW.

http://smartinvestor.business-standard.com/market/Marketnews-374583-Marketnewsdet-India_China_led_investments_in_renewable_energy_in_2015_UN.htm#.VvZJRvl9600

FALCON TYRES LOST GLORY!!!

Ruia group loses grip on Falcon Tyres

PRATIM RANJAN BOSE, 

KS BADRI NARAYANAN

Stake falls to 2.12% after ICICI Bank invokes most shares pledged by a Ruia offshore armKOLKATA/CHENNAI, JANUARY 14:  Kolkata-based Pawan Kumar Ruia group has lost control of Falcon Tyres, which it had acquired 10 years back.The Ruia group had got a controlling stake in Falcon Tyres in December 2005 through an offshore deal.As on the end of September 2014, the Ruia group had a 31.62 per cent stake in Falcon, which has considerable presence in the two-wheeler tyre segment.According to a stock market notification of January 8, the Ruia group has lost control of Falcon as ICICI Bank has invoked 29.5 per cent of the 30.35 per cent shares that the Ruia group’s Mauritius-based Dim Rim and Wheel had pledged with the lender.The Ruia group now holds just 2.12 per cent in Falcon.While the stock market notification does not elaborate on the ownership status of Falcon, sources say ICICI Bank is now the de facto owner.Neither ICICI Bank nor the Ruia group offered any comment.ICICI Bank Singapore had lent $85 million to Wealthsea, a Mauritius-based investment arm of the Ruia group so that Dim Rim and Wheels could put through the Falcon buy.As part of the re-financing deal, the shares of Falcon were pledged with ICICI Bank. According to sources, the Ruias planned to repay ICICI Bank by selling the properties of Dunlop, which the group had acquired. But that did not happen as a court barred sale of Dunlop properties. Wealthsea defaulted, and ICICI Bank took it to liquidation, in the second half of 2014. The Ruia group did not contest the decision, triggering a chain of events, including the invoking of the pledged Falcon shares.Settlement soon?According to SEBI takeover regulations, any change in ownership or acquisition of over 25 per cent should trigger an open offer to the existing shareholders. But ICICI Bank is yet to make any announcement on Falcon.Sources, however, say the bank is in fresh negotiations with the Ruia group for settlement of dues and return of the Falcon shares. The total dues (including penal interests) now stand at nearly double the principal loan amount ($85 million).Sources close to the Ruias claim the group enjoys the support of corporate bodies, which together own 63.79 per cent in Falcon.Among the public shareholders, Suncap Commodities, Regus Impex and Salputri Commerce hold 56 per cent. A settlement, if it comes through, would require the Ruia group to raise fresh finances.Meanwhile, uncertainty is taking a toll on Falcon. While the turnover is down to ₹18 crore in the September quarter from ₹126 crore in January-March 2014, the company’s accumulated losses for the first half of this fiscal are close to ₹20 crore.(This article was published on January 14, 2015)

http://www.thehindubusinessline.com/companies/ruia-group-loses-grip-on-falcon-tyres/article6789458.ece