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Fairfield Atlas: Powerful engine

Positive growth and steady expansion plans

We had written about Fairfield Atlas Ltd (Fairfield) (Moneylife, 30 December 2010). At that time, the stock was quoting at Rs60. The stock has since jumped by 102% to Rs121 (as on 17 February 2012). Fairfield makes automobile and industrial transmission gears and systems and caters to OEMs (original equipment manufacturers).

Formerly known as...

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Short rally possible: Friday Closing Report

Nifty should close above 5,400 over the next few days for the gains to continue

Better-than-expected response to the Greek bond swap deal led to a rally in the Asian markets, India included. Today’s gain on the Nifty almost wiped off the losses seen in the past three trading days. We had mentioned on Wednesday that the market may resume its uptrend if the Nifty closes above the resistance of 5,245 and 5,285. Today the index broke these levels at the beginning of the session itself. However, the benchmark should close above 5,400 over the next few days to maintain those gains. The National Stock Exchange (NSE) saw a volume of 70.47 crore shares.

Refreshed after a day’s holiday, the market opened on a firm note tracking positive global cues. The US markets closed higher overnight on hopes that Greece would be able to finalise a bond swap deal with its creditors in order to save itself from a default. The development also rubbed off on the Asian markets, which were in the positive in morning trade today. Back home, the Nifty opened 74 points up at 5,294 and the Sensex resumed trade at 17,326, a gain of 180 points over its close on Wednesday.

Across-the-board buying saw the indices in a buoyant mood. The momentum also resulted in all sectoral gauges trading higher. The market continued its northward journey in subsequent trade on strong institutional support.

However, lacklustre opening of the key European indices saw the local market paring some of its gains in post-noon trade to touch its intraday low. At the lows, the Nifty fell to 5,292 and the Sensex went down to 17,326.

The fall was temporary as the indices soon resumed their upmove taking the benchmarks to the day’s high around 3.00pm. At the day’s highs, the Nifty rose to 5,342 and the Sensex scaled 17,532.

The market snapped its three-session losing streak and closed higher on across-the-board buying support and news of better-than-expected support to the Greek bond swap offer. The Nifty closed 113 points (2.17%) higher at 5,334 and the Sensex jumped 358 points (2.09%) at 17,503.

The advance-decline ratio on the NSE was 1242:463.

Among the broader indices, the BSE Mid-cap index surged 2.16% and the BSE Small-cap index climbed 1.35%.

Barring the BSE Fast Moving Consumer Goods index (down 0.12%), all other sectoral gauges settled higher. They were led by BSE Metal (up 4.69%); BSE Capital Goods (up 3.75%); BSE Bankex (up 3.66%); BSE Consumer Durables (up 2.92%) and BSE Realty (up 2.73%).

Jindal Steel (up 6.83%); Tata Steel (up 6.74%); ICICI Bank (up 6.22%); Larsen & Toubro (up 5.27%) and Sterlite Industries (up 4.66%) were the top gainers on the Sensex. The main losers were Wipro (down 1.63%); ITC (down 0.74%); Infosys (down 0.69%); Hindustan Lever (down 0.59%) and GAIL India (down 0.34%).

The index toppers on the Nifty were Jindal Steel (up 8.05%); Tata Steel (up 7.50%); ICICI Bank (up 6.48%); IDFC (up 5.77%) and L&T (up 5.29%). The laggards were led by Wipro (down 2.22%); Reliance Power (down 1.84%); Infosys (down 0.95%); Siemens (up 0.87%) and ITC (down 0.81%).

Markets in Asia, with the exception of Straits Times, closed higher on hopes that Greece would reach an agreement with its creditors, easing worries of possible default. Meanwhile, China’s annual consumer inflation eased to a 20-month low of 3.2% in February while factory output growth slowed to its lowest level since July 2009.

The Shanghai Composite advanced 0.79%; the Hang Seng gained 0.89%; the Jakarta Composite rose 0.60%; the KLSE Composite added 0.04%; the Nikkei 225 surged 1.65%; the Seoul Composite climbed 0.88% and the Taiwan Weighted was up 0.39%. Bucking the trend, the Straits Times declined 0.24%. At the time of writing, the key European indices were mixed while the US stock futures were in the negative.

Back home, institutional investors—foreign as well as domestic—were net sellers in the equities segment on Wednesday. While foreign institutional investors pulled out funds worth Rs504.59 crore, domestic institutional investors withdrew Rs129.91 crores from the equities markets.

With its cash flow under stress, engineering and construction firm HCC today said its board has approved corporate debt restructuring proposal. The decision for CDR comes in the wake of Hindustan Construction Company failing to see expected cash flow primarily because of delays in outstanding payments, the company said. The stock gained 3.20% to close at Rs27.45% on the NSE.

Essar Oil (EOL) today said it has signed an agreement with Indraprastha Gas (IGL) to set up CNG dispensing facilities at the former’s petrol pumps in the national capital region. The agreement provides for EOL using IGL’s CNG pumping facilities at the outlets, the company said in a press statement here. Essar Oil surged 3.61% to close at Rs57.45 on the NSE.

INOX Leisure has raised its stake to 68.30% in Fame India after subscribing to a rights issue.  INOX had picked up 36.5% stake in Fame by acquiring 2.02 crore shares at Rs 44 per share. INOX settled at Rs48.20 on the NSE, up 0.42% over its previous close.

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Share prices may resume uptrend: Wednesday Closing Report

Nifty has to close above 5,245 to regain the uptrend

The market settled down for the third day in a row on domestic concerns and dismal global cues. Yesterday we had mentioned that the Nifty may move down to the level of 5,160 and then to 5,100. Today the index fell to 5,171 but made a smart recovery of 49 points to close at 5,220. The Indian stock market will be closed on Thursday on account of a local holiday. If the benchmark manages to close above 5,245 on Friday, it may be seen as a first sign of reversal. After this we may see the Nifty reaching the level of 5,285 and then higher. However, if Nifty goes below today’s low, the decline may continue. The National Stock Exchange (NSE) saw a volume of 76.85 crore shares.

The market opened in the negative tracking the weak global markets. Overnight, US stocks settled lower on worries about the European debt crisis and a slowdown in global recovery. On the domestic front, the depreciation of the rupee in early trade also weighed on investors. The Nifty opened at 5,207, down 15 points from its previous close, and the Sensex lost 46 points to open trade at 17,127.

Selling pressure in early trade saw all sectoral indices trading in the negative. Volatile trade was seen since the start of the day’s trade. However, select buying that began around 10.00am pushed the market into the green. The gains helped the indices hit their intraday highs in late morning trade. At the highs, the Nifty touched 5,244 and the Sensex rose to 17,239.

Institutional selling pressure in oil & gas, metal and power sectors pushed the market lower once again. The benchmarks then began a southward journey in the absence of any local cues. They fell to the day’s lows in the post-noon session with the Nifty falling to 5,171 and the Sensex going down to 17,009.

However, bargain hunting at lower levels resulted in a smart recovery and ensured a flat finish with a negative bias. The Nifty closed two points lower at 5,220 and the Sensex settled at 17,146, a cut of 28 points over its previous close.

The advance-decline ratio on the NSE 496:1219.

Among the broader indices, the BSE Mid-cap index shed 0.08% and the BSE Small-cap index fell by 0.61%.

The top sectoral gainers were BSE Realty (up 0.90%); BSE IT (up 0.78%); BSE Bankex (up 0.69%); BSE Healthcare (up 0.40%) and BSE TECk (up 0.32%). The leading losers were BSE Metal, BSE Oil & Gas (down 1.51% each); BSE PSU (down 0.95%); BSE Power (down 0.52%) and BSE Capital Goods (down 0.31%).

The key performers on the Sensex were Wipro (up 1.97%); HDFC Bank (up 1.52%); Bajaj Auto (up 1.13%); DLF (up 1.09%) and Infosys (up 1.07%). The major losers were Sterlite Industries (down 3.95%); NTPC (down 2.41%); Reliance Industries (down 1.94%); Bharti Airtel (down 1.91%) and BHEL (down 1.85%).

Jaiprakash Associates (up 6.39%); Reliance Power (up 5.85%); HCL Technologies (up 2.85%); HDFC Bank (up 1.99%) and Bajaj Auto (up 1.94%) were the main gainers on the Nifty. Sterlite Ind (down 4.43%); Sesa Goa (down 3.18%); NTPC (down 2.61%); Power Grid Corporation (down 2.30%) and Jindal Steel (down 2.18%) settled at the bottom of the index.

Markets in Asia closed in the red on renewed worries whether Greece would be able to manage its debt issues. An analyst pointed out that markets are expected to remain sensitive to European cues till 20th March, the Greece bond redemption date.

The Shanghai Composite declined 0.65%; the Hang Seng dropped 0.86%; the Jakarta Composite fell by 0.62%; the KLSE Composite tanked 0.95%; the Nikkei 225 slipped 0.64%; the Straits Times fell by 0.64%; the Seoul Composite was down 0.91% and the Taiwan Weighted closed 0.44% lower. At the time of writing, the key European indices were up between 0.28% and 0.72% and the US stock futures were in the positive.

Back home, foreign institutional investors were net sellers of shares aggregating Rs241.22 crore on Tuesday while domestic institutional investors were net sellers of equities amounting to Rs179.91 crore.

Global rating agency Moody’s today downgraded ratings assigned to various debt programmes of public sector lender Bank of India (BoI) by one notch due to deteriorating asset quality, among others. The stock fell by 0.64% to close at Rs350 on the NSE.

HCL Technologies today said it has signed a five-year IT infrastructure outsourcing deal worth $300 million with Finnish recyclable product maker UPM. As part of the agreement, HCL will provide data centre, end user support, network services and professional IT services to UPM. HCL Tech closed at Rs495 on the NSE, up 2.83% over its previous close.

Infrastructure major Sadbhav Engineering has been declared as the lowest bidder for the four-laning of Gomati ka Chauraha-Udaipur section of National Highway 8 in Rajasthan. The Rs1,280 crore project is under the National Highway Development Programme (NHDP) phase IV on design, build, finance, operate and transfer basis, the company said on Wednesday. The stock settled at Rs133 on the NSE, down 2.85%.

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