SHARES FOR A MODEL PORTFOLIO

SHORT TERM REASON

1)KALINDEE RAIL NIRMAN=110 Expecting a good order from Indian railways in this rail budget. Also company have decent track record in rail biz exposures. We can sell the share at 160-170 range in February Last week. In last rail budget Kalindee went up to 201 level

2)KERNEX=78 rate. Same reason as above .Also kernex is working in signal system and electrification sector in railway. Have global presence in Egypt and other middle east nations. The stock hit a 52 week low of Rs.54 and high of Rs.170

3)EDUCOMP= 220 This stock is another budget pack stock related to education sector.Educomp is one of the largest education co in India. The stock hit a 52 week low of Rs.168 and high of Rs.528.The main reason is stocks attractive rate and good biz going forward. I expect a target around 350-400 level

4)PANTALOON= 150 The Kishore Biyani led Big Bazaar co. Now hot picks for traders and investors due to FDI allowing in retail sector. Once assembly elections in 5 states is over UPA govt will again take this matter to consideration. The stock hit a 52 low week Rs.126 high Rs.370. So we can sell shares at 250 or even more in next 2-3 month tenure

LONG TERM INVESTMENT RATIONALE

1)CAIRN INDIA =320 World’s fastest growing oil exploration company. Vedanta resources bought shares of cairn at RS.405/share. Cairn contribute to India’s 1/5 of oil demand. Good share to buy for long term

2)TATA STEEL=350 India’s global steel player from Tata group.Now available at p/e ration of just 4. Strategic take over of chorus group last year will give tat steel a global exposure especially in Europe. Stock will go up once recession trend over Europe goes

3)JP ASSOCIATES=55 India’s largest third manufacture of cement. Also have exposures to SEZ and reality.JP ASSO I one of the fastest growing Indian company

4)PFIZER= 1100 An USFDA approved American drug major who have global presence have niche products in their portfolio .The rising middle class income in Indian family is good for hospitality and healthcare companies as they demand good treatments

5)FORTIS HEALTCARE= 100 It is the second largest hospital network in Asia after Apollo Hospital. Malvinder singh,the promoter of global drug major Ranbaxy, is the promoter and chairman of Fortis Healthcare .It is a cash rich company having biz in brunei,hong kong, China, Malaysia and Singapore.

BOOK PROFIT IN APOLO HOSPITAL

Those who buyed Apollo hospital at 500 rate last week can sell it ta 600 level at 20% profit and sit with cash on hands

BUY APOLLO HOSPITAL AGAIN

Hi friends,those who book profit in Apollo hospital at 650-700 rate can once again buy Apollo hospital as valuations have come attractive.Wait for a target of 600 on the scrip in next few weeks

RBI TAKES ACTION TO CURB RUPEE

The Reserve Bank of India on Thursday sold dollars through public sector banks and announced steps to curb speculation in the foreign exchange market by banks and corporates as it intervened to pull back the rupee from an all-time low of 54.3 against the dollar and help it close at 53.65.

After market hours, RBI also announced a reduction in trading limits for banks. It added that forward contracts by businesses and foreign institutional investors, once cancelled, cannot be rebooked.
As rupee continues to fall, RBI said banks must square up their dollar position by the end of the day. This has been enforced by reducing the net overnight open position limit for banks. On forward contracts, RBI said all such deals booked by both exporters and importers will henceforth be on a fully deliverable basis. If any participant is forced to contract the forward contract, he will not be eligible to receive any exchange gain.

The restrictions in trading limit in forward contracts come in a week in which the rupee has seen its sharpest declines. The currency, which closed last weekend at 52.04, had fallen to 54.3 by noon on Thursday. During the current year, the currency has fallen by more than 18%. Many traders said the rupee would have hit 55 against the dollar if the RBI had not stepped in. The sharp depreciation has made crude imports more expensive and threatens to add to inflation which has only now started showing signs of easing. Forward contracts are deals to sell the dollar at a fixed price in future. Exporters and investors enter into such deals to hedge against the risk of any sharp movement in the currency.

RBI's hand was forced as negative expectations were turning out to be self-fulfilling. The central bank acted only a day ahead of its mid-term policy review on Friday when it is expected to announce its monetary stance for the current quarter. RBI is widely expected to keep key rates unchanged after industrial production dipped 5.1% in October. "These are short-term measures which market participants understand are aimed at stabilizing the market," said Ashish Vaidya, head of fixed income, currency and commodities trading, at UBS. He added that while the rupee was expected to firm up, liquidity in the forex markets would reduce.

India: Digitisation Positive for Cable TV

The cable networks in the four metros will be digitized by the end of June 2012. Currently, the total TV household subscriber base is 135 million out of which close to 110 million are analog subscribers.
The much-awaited Cable TV Networks Regulation Amendment Bill was finally passed by the Lok Sabha on Tuesday paving the way for the next digital wave in the country.

The move will cheer investors of DTH operators and Multiple System Operators like Den Network and Hathway Cables.
The Bill aims to digitise India's vast cable TV network by the end of 2014.
The cable networks in the four metros will be digitized by the end of June 2012. Currently, the total TV household subscriber base is 135 million out of which close to 110 million are analog subscribers
With this Bill being passed, nearly 80 per cent of the subscribers who are under-declared in the analogue regime will be forced to go digital, translating into higher revenues across the chain.
The move is also expected to benefit broadcasters as it will help derisk their revenue base by increased subscription revenues through advertising revenues. While this move is expected to be a win-win for all stakeholders, it has faced stiff opposition from Local Cable Operators who will be compelled to allign with MSOs.

With digitization, viewers stand to benefit with more number of channels and better quality viewing. But with the capital requirement for digitization estimated at Rs 20,000 crore, it is going to be a cash guzzling task.

SO I RECOMMEND HATHWAY CABLES AT Rs.110 FOR A TARGET OF 240 WITH A ONE YEAR PERSPECTIVE AND DEN NETWORK AT Rs.40 FOR A TARGET OF RS.250 IN COMING YEARS

Infosys topples RIL as most influential stock on bourses

Billionaire Mukesh Ambani-led Reliance Industries Ltd has lost its position as the Indian stock market's most influential individual company to IT major Infosys, following a recent plunge in its share price.

Measured in terms of its weightage on the key barometer index of Indian stock market, the Sensex, RIL had been enjoying its position as the most influential stock for many years and the movement in its share price has been crucial for any major fall or rise in this index.

However, RIL has now slipped to second position after Infosys in terms of its Sensex weightage, which is measured by the market value of a company's free-float or non-promoter shares that can be freely traded in the market.

Mumbai: Billionaire Mukesh Ambani-led Reliance Industries Ltd has lost its position as the Indian stock market's most influential individual company to IT major Infosys, following a recent plunge in its share price.

Measured in terms of its weightage on the key barometer index of Indian stock market, the Sensex, RIL had been enjoying its position as the most influential stock for many years and the movement in its share price has been crucial for any major fall or rise in this index.

However, RIL has now slipped to second position after Infosys in terms of its Sensex weightage, which is measured by the market value of a company's free-float or non-promoter shares that can be freely traded in the market.
Infosys topples RIL as most influential stock on bourses
Reuters

At the end of Monday's trade, Infosys was the top-weight Sensex stock with a weightage of 10.25 per cent, pushing RIL to second slot with a weightage of 10.08 per cent.

Similarly at the NSE's Nifty index, another barometer of Indian stock market, Infosys was the top-ranked stock with a weightage of 9.13 per cent, followed by RIL's 8.48 per cent.

The weightage of a stock on these two indices changes daily as per the change in the market value of their shares.

According to market analysts, Reliance's replacement has not come as a surprise, the stock has been under-performing the market barometer Sensex for quite sometime.

On a group-basis, RIL had slipped to third slot in June this year, in terms of a corporate group's influence in moving the stock market benchmark Sensex, after HDFC and Tata groups.

HDFC Ltd and HDFC Bank together carry a weightage of over 13 per cent in the Sensex, while four Tata group firms on the index (TCS, Tata Steel, Tata Motors and Tata Power) command a weightage of close to 11 per cent.

RIL stock has crashed by 31 per cent so far this year, while Infosys' loss has been smaller at 21 per cent in this period. Also, the decline in Infosys has been slightly lower than that of 23 per cent drop in the Sensex so far this year.

As a result, RIL's free-float market value, or the value of RIL shares held by public shareholders, stood at Rs 131,091 crore, which was lower than that of Infosys at Rs 133,305 crore as on Monday.

However, RIL remains bigger than Infosys in terms of the overall market value, including the promoter shares.

RIL's total market value stood at Rs 238,347.37 crore as on Monday, as against Infosys' 156,829.22 crore.

RIL is the country's most valued firm, followed by TCS, ONGC, Coal India and Infosys in the top-five.

Interestingly, another IT giant Wipro, which once occupied the position of the country's most valued company, also moved back into the top-ten league on Tuesday.

Wipro commanded a market cap of Rs 1,02,343 crore in the mid-day trade on Tuesday at the BSE.

At the end of Tuesday's trading session also, Infosys retained its lead over Reliance Industries with a higher weigthage in the Sensex and Nifty.

Infosys commanded a weightage of 10.25 per cent on the Sensex, as against RIL's 10.20 per cent at the close of Tuesday's market hours.

On the Nifty index also, Infosys' weightage stood at 9.1 per cent, higher than RIL's 8.59 per cent.