Wednesday, April 25, 2012

15 stocks to keep on your radar

It was a flat close on Wall Street ahead of the FOMC meeting announcement taking place later in the day. Strong corporate earnings, however, drove most global markets higher. European markets bounced back to end in the green as Asia opened firm after Apple's earnings beat street estimates.

US Markets

The US markets closed mixed, ending off their session highs. Markets will be looking for the Federal Reserve's economic assessment and clues to future policy, including the probability of a third round of quantitative easing (QE), when it concludes its two-day policy meeting later on Wednesday.

Apple reported quarterly earnings that beat Wall Street's expectations, sending its shares higher in extended-hours trading.

On the economic data front, home prices dropped in February for a sixth straight month. New home sales slid 7.1% in March to a seasonally adjusted 328,000-unit rate, hitting their lowest level in four months. Consumer confidence dipped slightly in april to 69.2 from a downwardly revised 69.5 in march.

Data to Watch

-US FOMC Meeting Announcement
-US Durable Goods Order
-US Wkly Mortgage Apps

European Check

European markets closed higher, bouncing back after sharp falls in the previous session helped by some strength from banks. Successful European debt auctions sent yields on Dutch, Spanish and Italian debt lower on Tuesday, a day after the government in the Netherlands collapsed amid turmoil over budget cuts.

The Dutch Crisis

The Dutch crisis intensifies as the main opposition parties refuse to back austerity plans needed to meet the EU's budget target. The caretaker prime minister must now turn to smaller parties if he wants to push through as much as 16 billion euro in spending cuts. The demand was strong for the Netherland's 2 and 5 year bonds which raised 2 billion euro. Yields did rise but within a normal range.

Currency & Commodity Corner

In the currency space, the euro was stuck in a range, hovering just below 1.32 to the dollar. The dollar index is weak at around 79 levels.

Brent crude prices fell and Nymex crude edged up, narrowing the spread between the two benchmarks. Weak gasoline futures also weighed on the complex as market participants rotated positions ahead of weekly inventory reports. US crude futures inched up 0.2% at USD 103.76 a barrel. Brent futures fell 55 cents to settle at USD 118.16 on Tuesday.

From the precious metals space, gold made slight gains as a weaker dollar increased the appeal of the precious metal as an alternative investment.

Indian Market

And back home, the Nifty traded largely in a range before closing with a mere gain of 22 points. TheSensex too shut with a 110 point gain at 17,207.

Stock Specific News

Sesa Goa reported poor numbers with a 22% decline in topline on account of lower sales volumes due to the logistic problems in Goa and the mining ban in Karnataka. EBITDA margins were under pressure owing to higher export duty which has doubled. The company's profits are down 20% year on year at Rs 1,162 crore. Also watch out for Petronet LNG in trade today.

Agency reports indicate that Coal India is mulling importing coal at international prices and selling it at local prices. CIL is considering importing 1.5 million tonne coal to ease power shortages.

And ratings agency Moody's maintains BAA2 rating on Reliance with a positive outlook. However, it says that the company's FY12 results lack growth momentum and were slightly weaker than expected.

Central Bank of India has cut its base rate by 25 bps to 10.50% from May 1. The bank will keep the BPLR rate unchanged at 15%.

Reports suggest NTPC has refused to sign the new fuel supply agreement with Coal India.

CAG has warned the government against validating RIL's entire expense in KG-D6.

Moser Baer Solar (Unlisted company of Moser Baer ) enters CDR cell, seeking Rs 739 crore debt recast, reports the Economic Times.

The RBI has cleared the Enam-Axis deal. The integration is likely to take place in the third quarter. Vallabh Bhansali has been made advisor, reports the Business Standard.

Government officials say that iron ore mining in Karnataka is likely to resume in July.

RBI has allowed airlines to raise overseas debt for working capital.

Praj Industries completes its buyback of 73.14 lakh shares at Rs 55.86 crore.

Era Infra Engineering secures a contract worth Rs 199 crore from NBCC.

Info Edge is mulling a bonus share issue on May 3.

Petron Engineering Construction has received an order from GAIL worth around Rs 67.08 crore.

Earnings to Watch

In key earnings to watch, Wipro and Sterlite announce their results today. According to a CNBC-TV18 poll, Wipro's dollar revenue may see 2.5% growth towards the top end of it's guidance of 1-3% while margins are expected to be flat.

In metals, Sterlite may see some improvement in PAT and EBITDA sequentially due to rupee appreciation and strong volume growth in Hindustan Zinc.

Other Results Today

Yes Bank, HCL Infosystem, LIC Housing, BEL, IBull Real Estate, India Cements, Raymonds, JSW Holding, Motilal Oswal, Oberio Realty, Tata Metaliks, Alembic Pharma, BASF, EID Parry, FOSECO, Indo Rama, Manali Petro, Mahindra Holiday, Rain Commodities, Supreme Ind., Swaraj Engines and Zensar Tech.

No comments: