Weekly Stock Market Prediction 21st Jan 2013 – 25th Jan 2013

 

Weekly planetary position: During the week, Moon will be transiting in Taurus & Gemini. Lord Saturn & Rahu in Libra. Jupiter in Taurus. Venus & Pluto in Sagittarius. Mars, Sun & Mercury in Capricorn. Ketu in Aries.  Uranus in Pisces.  Neptune in Aquarius.
Rahu & Ketu, which are the main planets responsible for speculation / trading in stock market, have changed their houses (Rashi) on 23rd December 2012. They stay in one house for 18 months. Trade cautiously, many sectors, which were receiving astrological support due to their placement in existing houses (Rashi), will now stop getting support & the stocks from those sectors will start coming down gradually. To Many Investors/ Traders, to whom current placement was favorable, may not be beneficial in future, due to this change. It is advise able to consult your financial astrologer.

BE CAUTIOUS: Astrological position is highly deceptive. Trade cautiously & avoid carrying too much long or short positions. Deception does not mean that Nifty / Sensex will come down, but it will behave against the market expectations & that too without any solid reason.  It was predicted last week also & on 16th January 2013, Nifty was down & in panic more than 95% stocks in F.O. segment closed in red.

Following sectors will be getting astrological support & buying may be initiated on down days.

BANKING & FINANCIAL sector will continue receiving very strong astrological support. Preference should be given to PSU Banks & Housing Finance. Buy Canara Bank, Bank of India, Bank of Baroda & PNB etc in Banking & HDFC, LIC Housing, Dewan Housing & GIC Housing in Financial sector. At lower levels one can also buy IFCI, IDFC, REC & PFC.

TELECOM sector will also be getting strong astrological support. Buy Idea, Bharti & Reliance Communication on dips.

AUTO sector will be receiving astrological support. Buy Maruti, Tata Motor, Ashok Leyland, Eicher Motor & TVS Motor.

PHARMA sector too will be receiving astrological support. Buy Stride Arco, Wockhardt, Aurobindo Pharma, Glenmark, Biocon & Cipla etc on decline.
LIQUOR & PAINTS sectors will continue receiving astrological support. Buy United Spirit, TilakNagar & Asian Paints on down days.

Every year, with commencement of new Samvat, astrologically, based on planetary position, some new sectors start out performing, while others remain laggard. According to our experience of last more than 12 years, stocks of such sectors outperform resulting in exorbitant gains, irrespective of the behavior of Market. To know which stocks/ sectors will outperform in current Samvat & to achieve maximum gains please contact us.

Always be very cautious, when some main planets i.e. Rahu, Ketu, Jupiter & Lord Saturn are changing their houses. It may be that certain sectors which were continue sly getting support for long time may stop receiving support due to change in position by above planets & stocks of those sectors starts coming down, resulting in losses. This is common reason, why most people loss money.

New Samvat have started from 14th November 2012. Whenever New Samvat starts, based on planetary position / conjunction & aspect among planets, some new sectors commence out performing & many sectors, which were in momentum during last Samvat start underperforming.

It has been observed many times that investors / traders (not knowing this fact) keep investing /trading in such sectors,( whose astrological support is over) – resulting in losses. It is suggested to consult your Financial Astrologer to know about the sectors.

One should trade only in the stocks of that sectors which are getting very strong astrologically support,

Sectors which get very strong ASTROLOGICAL support are not normally affected by downfall in the market.
 

Pre-Market Call - Buy Hero MotoCorp for short-term target of 1934 with stop loss of 1825 . . . . . . . . . . Comments - From the top of 2149 to bottom of 1743, scrip was in downtrend forming lower tops & lower bottoms. From the bottom of 1743, scrip started moving in range bound zone between 1743 – 1963 levels, forming rectangle pattern. On Tuesday after making low of 1810, scrip closed positive at 1853, forming bullish engulfing pattern supported by positive indicators indicates possible 

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 Update on One Day Call: (3:24 PM) Book entire Profits in long positions in FT Futures @ 1184 - 1180. Call Reco @ 1165. Call Closed.




BTST: BUY ARVIND AROUND 104, SL BELOW 102, TGT 106/108

!!SAI PARSADAM!!

VIKAS PARSHURAM SAMWATSARE

AND

Universal Sompo General Insurance registers 15% decline in premium collection during Nov

 

News Details
Universal Sompo General Insurance has reported a decline of 15 per cent in gross premium at Rs 36.98 crore in November 2012 against Rs 43.59 crore in November 2011. The premium collected was significantly lower than that collected in October 2012 as it had surged by 80 per cent to Rs 47.16 crore in October 2012. The insurance company’s premium collection rose by 31 per cent to Rs 331.24 crore during the period April- November 2012 against Rs 252 crore during the period April- November 2011. In November 2012, the total gross premium underwritten by the non life insurance sector stood at Rs 5,158.21 crore.
The private non life insurance sector has underwritten gross premium worth of Rs 2,338.28 crore, up 25 per cent in November 2012 while the private non life insurance sector grew by 22 per cent to Rs 18,829.02 crore during April- November 2012. Similarly, the public non life insurance sector has underwritten gross premium worth of Rs 2,819.93 crore, up 15 per cent in November 2012. The public non life insurance sector grew by 18 per cent to Rs 25,622.30 crore during April- November 2012. Universal Sompo General Insurance is a joint venture between the Allahabad Bank, Sompo Japan Insurance Inc, Dabur investments, Karnataka bank and Indian Overseas bank. The insurance company, with more than 75 general insurance products in its basket, is catering to all the needs of its promoter bankers such as Allahabad Bank, Indian Overseas Bank and Karnataka Bank Ltd.

 UBS downgrades Colgate citing higher valuations


Market Eye - UBS downgrades Colgate Palmolive India Ltd  to "neutral" from "buy", saying the stock has well outperformed the consumer sector since October 1, 2012.

However, UBS says it remains a believer in Colgate, raising its target price to 1,720 rupees from 1,600 rupees.

"Colgate India is one of the most fundamentally sound companies in the consumer space, and that its brand strength and competitive management will continue to drive growth and margin expansion," UBS says in a note dated Thursday.

Colgate has risen 27.7 percent since the close of September 2012 compared with the BSE FMCG index's 5.5 percent rise in the same period.

Colgate shares fell 1.1 percent to 1,524.75 rupees.

 HC stops Sterling Biotech from selling, mortgaging assets

 

News Details
Gelatin maker, Sterling Biotech has been prevented by the Bombay High Court from mortgaging or selling its assets. The high court has given this order on January 09 in a winding up petition filed by the holders of foreign currency convertible bonds (FCCBs) issued by the company. In the year 2007, Sterling Biotech had issued USD 250 million convertible bonds, of which the company has redeemed and converted 46 per cent of the initial issue, amounting to approximately USD 115 million. The company was supposed to repay the maturity amounting to USD 184 million on May 17, but failed to do so. In their plea, bondholders had said that in the past, the company had disposed of its interests in a Nigerian oil well to a group firm at very low prices. The bondholders added that further dilution of assets is likely to hurt the interest of lenders. “Company has already divested its substantial equity holding in Sterling Oil Resources Limited (“SORL”).
It appears that the shares have been sold at an undervalue. The Company had provided a valuation report dated 27 October, 2011 which purports to determine the fair value of the shares held by the Company in SORL,” the bond holders had said in their petition. “It (Sterling Biotech) cannot dispose of or create third party interest in its assets on one hand, while seeking adjournment in the matter for filing reply on the other hand. It will be therefore, necessary at this stage to direct the respondent Company not to create any new rights in respect of its assets, except in the usual course of business, till the next date of hearing, and it is so directed,” Justice, N M Jamdar said in his order.

  

GAIL to raise capacity at Dabhol LNG terminal

 

 MUMBAI  - GAIL Ltd  plans to raise capacity at its Dabhol LNG terminal to 7 million tonnes in two years from 5 million tonnes now, its Chairman B.C. Tripathi said on Thursday.

The state-run gas transmission company, which commissioned its 5 million tonne Dabhol liquefied natural gas (LNG) terminal on Thursday, is considering buying 6 to 7 LNG carriers and will decide on it in 3 to 4 months.

GAIL will get the first cargo to start its Dabhol LNG terminal on January 24 from Russia's Gazprom. It had signed a 20-year agreement to source LNG from Gazprom.

 

 

!!  SAI PARSADAM !!

VIKAS PARSHURAM SAMWATSARE

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RBI’s proposal to increase LTV ratio likely to assist gold loan cos

News Details
The Reserve Bank of India’s (RBI) proposal to increase the loan to value (LTV) ratio from 60 per cent to 75 per cent is expected to assist the gold loan companies in increasing their business volume, ICRA said in a report. "Standardization of valuation of gold and increase in the LTV cap from 60 per cent to 75 per cent would help gold loan companies increase business volume," the report stated. While recognizing the positive role of banks as well as non-banking financial companies (NBFCs) in monetizing gold, the report said that the gold loan NBFCs are not likely to increase their current market share as banks have a competitive advantage over such NBFCs.
"As banks enjoy a competitive advantage over NBFCs, and given the healthy risk-adjusted returns and growth prospects in the gold loan segment, banks could step up the pace of growth of gold loans. Were this to happen, the market share of NBFCs in gold loans may not increase from the current 28 per cent by FY12-end," the report added. However, the rating agency added that the growth rate of gold loan companies is likely to witness a slowdown as against the last 3 years due to their significant dependence on the wholesale funding sources. "Significant funding constraints (despite possible easing) may slow down the pace of growth of gold loan companies, as such entities are highly reliant on wholesale funding sources," the report said.
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Govt seeking to amend controversial tax rules next month

 The government is likely to approach parliament next month to water down retrospective tax rules that damaged investor confidence, two finance ministry officials said on Monday, a move that may help settle British-based Vodafone Group Plc's long-runnning $2 billion tax dispute.

Vodafone, the largest overseas corporate investor in India, has repeatedly clashed with Indian authorities over taxes since it bought Hutchison Whampoa's local mobile business in 2007.

The government was heavily criticised by the corporate sector for introducing the tough tax rules last year at a time India was suffering a sharp economic slowdown and trying to encourage investment.

Finance Minister P. Chidambaram has for several months been considering recommendations by a government panel that said past mergers and acquisitions should not be taxed.

Vodafone, the world's biggest mobile operator by revenue, said in a statement last week that it had received a reminder from Indian tax authorities on the disputed tax dues, adding it believed that no tax was payable on the deal.

"(The) Finance Minister is likely to approach the parliament next month on the retrospective issue," said a senior finance ministry official, who asked not to be identified because of the sensitivity of the issue.

He declined to say whether the government was considering a waiver of the entire tax bill or cancelling interest and penalty charges on the original tax demand.

However, the officials said Chidambaram was likely to introduce amendments in the 2013 Finance Bill to revise the amendments that were introduced last year along with the budget.

Then Finance Minister Pranab Mukherjee introduced an amendment enabling authorities to make retrospective tax claims on long-concluded corporate deals after the Supreme Court had quashed the government's tax demand on Vodafone.

A committee headed by the finance minister's economic adviser, Parthasarathi Shome, has recommended that past mergers and acquisitions should not be taxed, or the government should waive both interest and penalty.

The officials said Chidambaram was looking at the recommendations to work out a solution to the Vodafone dispute by considering its impact on revenue receipts as well as investor sentiment.

They said the government needed parliament's nod to provide tax relief to the company, as this would also affect tax demands amounting to at least $5.5 billion for other such deals.

On Saturday, the Economic Times reported that tax authorities had asked Vodafone to pay 140 billion rupees, including interest on the tax dues.

One official said the letter was just a reminder to Vodafone to pay the tax following last year's amendment in the Act. "It is not a fresh tax notice," the official said, adding the parliament could provide relief.

The official said Vodafone had also expressed willingness to hold talks, and a solution could soon be reached.

Last April, Vodafone threatened the Indian government with arbitration proceedings in its fight over the retrospective tax proposal.
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Tata Power’s subsidiary commissions fourth 800 MW unit at Gujarat power plant 

 

News Details
Tata Power said that its subsidiary has synchronised the fourth 800 MW unit of its Mundra power plant in Gujarat. The development was achieved by its wholly owned subsidiary Coastal Gujarat Power Ltd. “The synchronisation of Unit 4 of the Mundra ultra mega power project is a significant milestone given the critical power shortage situation in the country. The Mundra power plant is one of the most efficient and environment-friendly plants based on super critical technology,” said Tata Power, MD, Anil Sardana.
Prior to the development, Tata Power has commissioned the first 800 MW at the plant in March 2012, while the second and third unit was commissioned in July and October 2012 respectively. Meanwhile, with the development in place, the total thermal power generation capacity of Tata Power has reached at 6847 MW.
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Govt likely to infuse $544 mln in FY13

 The government has indicated a capital infusion of 30 billion rupees into State Bank of India in the current fiscal year ending in March 2013, the bank's chairman said on Monday.

The infusion into the country's biggest bank will be done through a preferential allotment of shares, Pratip Chaudhury told reporters.

Capital infusion plans for the next financial year have not been finalised yet, Chaudhury added.
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 RAKBANK implements Infosys’ Finacle to improve customer services

 
Talking about another milestone achieved, Infosys said that the National Bank of Ras Al-Khaimah (RAKBANK) has announced the successful implementation of Infosys Finacle core banking solution. “The bank is now harnessing the full power of Finacle to better anticipate customer needs, improve customer experience and launch innovative products faster,” said the company in a filing to Bombay Stock Exchange. With the implementation, the bank gets to enjoy the comprehensive customer information provided system and thus utilising the same in bringing new product to the markets.
Additionally, the solution also automates the core functions of the bank’s data centers ensuring reduction in manual errors and streamlined operations. “RAKBANK is one of our valued customers in the Middle East. This partnership with Infosys Finacle is just the beginning of a transformation that will help RAKBANK deliver best-in-class banking to its customers across the region,” said Infosys, Finacle, Global Head, Haragopal M.
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Consumers will adjust with fuel prices hike if done in phased manner

 
Happy with the government’s nod to let state run oil firms hike the prices of fuels in the year, Bharat Petroleum Corporation Limited (BPCL) said the hike would be done in a phased manner over a period of one year as it will help consumers adjust to the same. “We should increase it in a phased manner. It can be a rupee per month which will not be a shock to the consumer… Since the hike will happen over a period of one year, it will help consumers adjust to the hike,” said BPCL, chairman, R K Singh.
The statement was given on the back of Finance Minister P Chidambaram announcing a roadmap to decontrol diesel and other petroleum products in a phased manner. The development brought cheers to the loss making oil companies, which are incurring losses despite government compensating for subsidising diesel alone. As per the calculations, the oil companies are incurring losses of over Rs 10 on every litre of fuel sold.

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NEWS COPYRIGHT VIKAS PARSHURAM SAMWATSARE 

 
Published on Monday, January 07, 2013