Strategy - Buy on dips ::Edelweiss pdf LINK

In recent days, the Government has acted boldly, undertaking several difficult reforms such as fuel price hike and FDI liberalization in several sectors among others. These steps send out a strong signal to investors, ratings agencies and even to RBI that the government is serious about India’s macro environment. We expect more steps to follow which should help the re-rating of Indian markets. Accordingly, we are changing our stance from ‘sell on rise’ to ‘buy on dips’ with year-end Nifty target of ~5850. We recommend increasing beta in the portfolio by adding rate cyclicals and trimming holdings in defensives such as FMCG and pharma.

Strategy - Buy on dips

Regards,

Supreme Industries - Power packed growth; visit note; Buy ::Edelweiss pdf LINK

Supreme Industries (SI IN, INR 282, Buy)

We attended the AGM of Supreme industries (SIL) and interacted with its Managing Director, Mr MP Taparia to get an update on growth and new launches of the company. SIL has maintained its topline growth guidance of 25% driven by a 16% growth in volume in FY13E and a strong traction across most segments except consumer segment. The company plans to launch composite cylinders and pipes and also plans to enter the high quality bathroom fittings segment. Maintain ‘BUY’.

BSE, Bulk deals, 18/9/2012

Deal Date	Scrip Code	Company	Client Name	Deal Type *	Quantity	Price **
18/9/2012	524412	Aarey Drugs	DEEPIKA JASMIN SHAH	B	247162	48.97
18/9/2012	524412	Aarey Drugs	DEEPIKA JASMIN SHAH	S	155058	48.59
18/9/2012	532919	Allied Comp	MAGAN MERCANTILE PRIVATE LIMITED	S	1058000	1.20
18/9/2012	531519	Ankush Finstock	PRAVIN DAHYABHAI PATEL	B	60000	9.20
18/9/2012	531519	Ankush Finstock	ABHISHEK DASHRATHBHAI PATEL	B	65000	9.20
18/9/2012	531519	Ankush Finstock	KRUNAL SAIDAS VANJARE	S	38000	9.20
18/9/2012	531519	Ankush Finstock	JAGRUT SAIDAS VANJARE	S	48000	9.20
18/9/2012	531519	Ankush Finstock	ANKIT PANKAJBHAI SHAH	S	36000	9.20
18/9/2012	514332	Anuvin Inds	KAUSHAL ANIL SHAH	S	30900	8.10
18/9/2012	531192	Associated Fin	PANAFIC INDUSTRIALS LTD	B	27500	35.68
18/9/2012	531192	Associated Fin	HARISH SETHI	S	27500	35.68
18/9/2012	531420	BMB Music	VINAY JAIN	S	41335	5.90
18/9/2012	524506	Coral Lab	NAVIN BACHUBHAI DOSHI	B	34980	66.00
18/9/2012	531129	Inani Marbles	TAK MACHINERY AND LEASING LTD	B	20000	461.51
18/9/2012	534623	Jupiter Infomedia	KUSUMBEN VASANTLAL MODI	B	30000	23.47
18/9/2012	531646	RFL Intl	SANJEEV AND CO SANJEEV KUMAR JAIN	B	65000	8.45
18/9/2012	531646	RFL Intl	BHAILAL DEVRAJBHAI PATEL	S	50000	8.45
18/9/2012	531646	RFL Intl	RAHUL ROHIT JHAVERI	S	50000	8.45
18/9/2012	531893	Sawaca Bsns	AKSHAY JAYANTILAL DOSHI	S	52950	225.36
18/9/2012	511754	Shalibhadra Fin	ROMESH ANILBHAI SHAH	B	45300	62.58
18/9/2012	511754	Shalibhadra Fin	HINABEN ROMESHBHAI SHAH	S	45000	62.80
18/9/2012	511754	Shalibhadra Fin	HINABEN ROMESHBHAI SHAH	S	39347	62.61
18/9/2012	513515	SR Inds	AVN STOCK AND SECURITIES BROKER PRIVATE LIMITED	B	84071	5.20
18/9/2012	513515	SR Inds	DINESH GARG	S	71321	5.20
18/9/2012	526139	Transgene Bio	BLACKHORSEMEDIA ANDENTERTAINMENT PRIVATELIMITED	B	808292	13.62
18/9/2012	526139	Transgene Bio	BLACKHORSEMEDIA ANDENTERTAINMENT PRIVATELIMITED	S	777995	13.33
18/9/2012	507458	United Brew Hldg	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	B	579324	101.55
18/9/2012	507458	United Brew Hldg	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	S	579324	101.69
18/9/2012	531874	Venus Power Ventures	MAKKENA RAMA KRISHNA	B	77500	10.37
* B - Buy, S - Sell
** = Weighted Average Trade Price / Trade Price

FII DERIVATIVES STATISTICS FOR 18-Sep-2012

FII DERIVATIVES STATISTICS FOR 18-Sep-2012
	BUY		SELL		OPEN INTEREST AT THE END OF THE DAY
	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores
INDEX FUTURES	44959	1234.15	40395	1120.23	473295	13117.22	113.91
INDEX OPTIONS	397611	11038.38	420353	11676.79	1934419	54139.05	-638.41
STOCK FUTURES	72569	2130.24	91253	2759.65	1015316	28498.48	-629.41
STOCK OPTIONS	66975	1922.38	66109	1910.70	75228	2237.78	11.68
						Total	-1142.23

 

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FII & DII trading activity across NSE and BSE 18-09-2012

	Buy	Sell	Net
	Value	Value	Value
FII	3764.11	2714.94	1049.17
DII	1506.03	2176.75	-670.72

 

-- 

Edelweiss Technical Reflection (ETR) :18 Sept: Edelweiss

Edelweiss Technical Reflection (ETR)

The week has begun on strong note with key indices closing in the green for the ninth consecutive session. After a gap up opening, Nifty scaled above the yearly high of 5630 (Feb 2012) in the opening hour, but profit taking resulted in the index lose the opening gains and the gap got filled as well. The second half once again saw Nifty pile up some lost gains, thus resulting in a positive close. Volumes were significantly higher and the breadth was in favour of advances suggesting an overall good day for the markets. India VIX has seen a sharp rise of 15%, closing at 17.78 resulted by bears scampering to cover their shorts. Momentum is indeed in an overbought state which poses a risk of bouts of profit taking, however the uptrend establishes remains intact. Thus this becomes a buy on declines market. Key levels to watch out for are 5585 and 5545 on the downside as immediate supports and 5725 / 5750 as resistances on the upside. Expect some profit booking / consolidation in the immediate near-term before a resumption of the advance.


High beta stocks powered their way up in today's session led strong gains in Realty (+6.2%), Cap Goods (+3.75%) and Banking (+3.25%) indexes. On the losing side were shares from FMCG (-3.6%), IT (-3.2%) and Healthcare (-1.8%) sectors. After Friday's underperformance, the broader markets bounced back, this time outperforming the frontline index with gains of 1.1% for the Mid-cap index and 1.13% for the Small-cap index.
Bullish Setups: RIL, COAL, TTMT, SAIL, CNXBANK

Stocks in News :18 Sept: Edelweiss

 Stocks in News

TechM buys 51% in Bharti’s VAS arm Comviva for INR 2.60bn (ET)
Bayer plea against Natco’s Naxavar clone turned down (ET)
‘Penalise Tata Power, Hindalco for idle coal blocks’ (ET)
Telenor can bid in auction with new partner: court (ET)
‘Fin Secy wants banks to fund partially-done realty projects’ (ET)
IDBI bank raises $500 million (ET)
BGR Energy Systems ltd has received an order worth INR 19.02bn from Damodar Valley Corp ltd. (DNA)
Hindalco raises INR 99bn in loans (MINT)
Wockhardt gets nod for anti-ulcer drug (MINT)

Welspun corporation raises INR 2.53bn (MINT)

NSE, Bulk deals, 18-Sep-2012

Date	Symbol	Security Name	Client Name	Buy / Sell	Quantity Traded	Trade Price / Wght. Avg. Price	Remarks
18-Sep-2012	HDIL	Housing Development and I	GENUINE STOCK BROKERS PVT LTD	BUY	25,00,072	85.00	-
18-Sep-2012	HDIL	Housing Development and I	GENUINE STOCK BROKERS PVT LTD	SELL	25,00,072	85.03	-
18-Sep-2012	HOTELRUGBY	Hotel Rugby Ltd	SAVITRIDEVI JAIPRAKASH AGARWAL	SELL	1,00,082	37.28	-
18-Sep-2012	IFCI	IFCI Ltd.	ADROIT SHARE & STOCK BROKER PVT. LTD.	BUY	59,45,265	31.42	-
18-Sep-2012	IFCI	IFCI Ltd.	ADROIT SHARE & STOCK BROKER PVT. LTD.	SELL	59,33,265	31.48	-
18-Sep-2012	IFCI	IFCI Ltd.	GENUINE STOCK BROKERS PVT LTD	BUY	52,31,041	31.66	-
18-Sep-2012	IFCI	IFCI Ltd.	GENUINE STOCK BROKERS PVT LTD	SELL	52,31,041	31.70	-
18-Sep-2012	KFA	Kingfisher Airlines Ltd.	ALIVE CONSULTANTS ALIVE	BUY	63,38,350	13.45	-
18-Sep-2012	KFA	Kingfisher Airlines Ltd.	ALIVE CONSULTANTS ALIVE	SELL	63,38,350	13.46	-
18-Sep-2012	KFA	Kingfisher Airlines Ltd.	TRANSGLOBAL SECURITIES LTD.	BUY	134,84,093	13.42	-
18-Sep-2012	KFA	Kingfisher Airlines Ltd.	TRANSGLOBAL SECURITIES LTD.	SELL	134,84,115	13.45	-
18-Sep-2012	SUPREMEINF	Supreme Infrastructure In	MAVI INVESTMENT FUND LIMITED	SELL	2,00,000	285.41	-
18-Sep-2012	SUPREMEINF	Supreme Infrastructure In	RELIANCE MUTUAL FUND	BUY	1,88,607	285.00	-
18-Sep-2012	TTKPRESTIG	TTK Prestige Ltd.	SWISS FINANCE CORPORATION (MAURITIUS) LIMITED	BUY	59,927	3846.15	-
18-Sep-2012	UBHOLDINGS	United Breweries (Holding	CROSSEAS CAPITAL SERVICES PVT. LTD.	BUY	5,79,324	101.60	-
18-Sep-2012	UBHOLDINGS	United Breweries (Holding	CROSSEAS CAPITAL SERVICES PVT. LTD.	SELL	5,79,324	101.56	-

IPCA Laboratories - Target Price: ` 487 Accumulate ::Dolat Capital

IPCA has transformed itself from a leading API manufacturer to a fully
integrated formulation company. We anticipate domestic formulations
to sustain growth trajectory from hereon (16% CAGR over FY12-14E) aided
by growth in CVS & pain management. We expect export formulations
to register 21% growth over FY12-14E mainly driven by increasing ramp
up in its US generics biz and higher contribution from institutional based
sales. The Indore SEZ will contribute revenue of ` 300-400mn in FY13E
(all of it in Q4FY13E) and ` 1bn in FY14E. Approvals from the recently
FDA approved Indore SEZ facility (approx 12-14 filings so far) is expected
to kick in Oct-Nov’12 onwards. The management appears confident of
US generics business to reach USD100mn by FY16E.
EBITDA margin guidance for the year is an improvement of 225bps YoY
(150bps shall be forex benefit). The management re-iterates its long
term growth strategy - doubling of revenues every four years.

Larsen & Toubro :Industry meetings re-confirm negative outlook :Nomura research,

Macro scenario remains
worrisome even as stock
outperforms; retain Reduce

HOLD Indoco Remedies:: Karvy

Multiple levers of growth – Rich valuation
Indoco Remedies (Indoco’s) robust growth in the domestic space over the last
two quarters and strong traction in key therapies enthuses confidence.
Convergence of primary and secondary growth data coupled with visibility
of product launches in Watson gives additional comfort. However, rich
valuations limit upside. HOLD.

Create pension income with annuity::Business Line

Buy annuity to cover your basic standard of living and invest in equity for requirements such as long-term health care.

If you are working in a small or medium-sized private-sector firm, chances are your employer may not offer you pension benefits in the form of fixed income for life. So, how can you create synthetic pension using products available in the market?

In this article, we show how you can use annuities to synthetically create pension income. We also provide some guidelines that you can apply to evaluate whether annuity should be a part of your portfolio.

A retired government employee typically receives a fixed sum of money every month from her former employer. You can synthetically create such cash flow even if your former employer does not provide such income.

Sales Traders Commentary :18 Sept: Edelweiss

Sales Traders Commentary

Indian equities ended with decent gains on Monday on the back of RBI`s decision to reduce CRR and the Govt move to allow FDI in multi-brand retail and civil aviation sectors. Realty, capital good, bankex, power and oil&gas stocks gained.
The Sensex closed at 18542, up 78 points while the Nifty jumped 32 points up to end the day at 5610.
Major gainers were Jindal Steel & Power (5.99%), ICICI Bank (5.39%), State Bank Of India (5.36%), Larsen & Toubro (4.35%), Bharat Heavy Electricals (4.30%), and Sterlite Industries (India) (4.16%).
Major losers were ITC (5.48%), Tata Consultancy Services (5.03%), Dr Reddy`S Laboratories (4.30%), Hindustan Unilever (2.76%), Infosys (2.67%), and Coal India (2.05%)
The Realty index was up by 6.21%. Major gainers were Indiabulls Real Estate (8.66%), DLF (6.46%), Anant Raj Industries (5.86%), D B Realty (1.31%) and Godrej Properties (1.05%).
The Capital Goods index was also up, by 3.74%. Major gainers were BEML (12.42%), ABB (3.1%), Bharat Electronics (1.77%), Alstom India (0.94%) and AIA Engineering (0.85%).
The Bankex index gained 3.24%. Major gainers were Bank Of Baroda(6.93%), Canara Bank (5.81%), ICICI Bank (5.39%), Federal Bank (4.77%) and Bank Of India (4.15%).
The FMCG index was down by 3.66%. Major losers were ITC (5.48%), Hindustan Unilever (2.76%), Colgate-Palmolive (India) (2.53%), Dabur India (2.32%) and Godrej Consumer Products (0.27%).
Major gainers in the mid – cap space were Alok Industries (5.02%), Aban Offshore (3.84%), Alstom India (0.94%), CORE Education and Technologies (0.92%) and A I A Engineering (0.85%).
Major gainers among small – caps were A2Z Maintenance & Engineering Services (8.89%), Trident (3.13%), Advanta India (2.36%), Reliance MediaWorks (2.12%) and A B G Infralogistics (1.42%).
Globally, Asia ended on a higher note while European indices were trading lower.

‘Take a medical test, even if not mandatory’ ::Business Line

It’s always recommended to buy a term insurance early in life and for the maximum tenure possible.

Medical tests are often the reason why most people put off taking a term plan. In an interaction with Business Line, Aneesh Khanna, Head Marketing & Product Management, IDBI Federal Life Insurance, talks about this and many other points to be kept in mind while taking a term cover. Excerpts:

For how many years should you take a term insurance policy? Is it necessary to continue the cover post-retirement too?

By taking insurance for a large tenure you are making sure that you are covered for a longer period, even post retirement, though the premium will be marginally more. It’s always recommended to buy a term insurance early in life and for the maximum tenure possible. In your early life you are healthier and hence your premium will be the lowest. Taking a 30-years term insurance will be very cost efficient than taking a 15-20 years term insurance and extending it later.

Accounting for foreign borrowings ::Business Line

Forex losses may be moved from the P&L account to the balance sheet.

Foreign borrowing is another area where forex fluctuations affect companies.

REPORTING

Take Rural Electrification Corporation (REC), for example. For the half year ended September 2011, the company had Rs 9,096 crore in foreign-currency borrowings.

Even though the company doesn’t have to repay foreign-currency borrowings anytime soon, accounting rules requires such borrowings to be reported based on the closing exchange rate at the end of each accounting period. The gain or loss arising on this restatement has to be shown in the financial statements.

Hindalco :Emerging from dark clouds… :Nomura research,

Al prices bottoming, expansion
nearing completion & stable
Novelis at attractive valuation

MBL Infrastructures Ltd. On a steady growth trajectory ::BP Wealth

MBL Infrastructures Ltd.
On a steady growth trajectory
Results Highlights
 The company’s revenue declined by 13.4% yoy to Rs. 2,682 mn. This was due unbilled work at
ten ongoing projects which has not reached significant level of billing as per the percentage
completion method of accounting followed by the company. The work at these project is going at
a full swing and the revenue is expected to flow from these project during Q3 & Q4FY13. We
also saw slow execution at the Orissa BOT projects resulting in low revenue.
 During the quarter we saw a decline in EBIDTA margins which stood at 12.5% down by 77 bps
yoy, primarily due to higher construction expenses and employee cost.
 During the quarter PAT margins were down by 125 bps yoy at 5.2%, primarily due to rise in borrowing
cost as a percentage of sales by 135 bps yoy at 4.3%.

GlaxoSmithKline Consumer Healthcare: Book profits ::Business Line

Don’t look for the gainers ::Business Line

Much like a fairy godmother in a benevolent mood, the Government has unveiled a flurry of reform measures that were on foreign investors’ wish list.

Thus, you have a diesel price hike, divestment in four public sector companies and more liberal foreign direct investment (FDI) limits in contentious sectors such as multi-brand retail (simply put, supermarkets), aviation and broadcasting, cleared in the blink of an eye.

Friday’s announcements have all the keywords that usually have foreign investors reaching for their wallets — fiscal reform, FDI, multi-brand retail and divestment. Therefore, this could well provide the impetus that the Sensex needs to vault over the 18,500 mark, where it is now tantalisingly poised.

18 Sept: Morning News (click on link to read article) IFCI Financial Services Limited

Morning News (click on link to read article)

Economic Times		Business Standard
Ø  RBI cuts CRR: Home and auto loan rates expected to come down Ø  Reforms credit positive, execution risk remains: Fitch Ø  Essel Group forays into UAE with 'Chandra' Ø  'India unlikely to see sovereign downgrade now' Ø  Reliance Power's Sasan plant connected to national grid Ø  Panel for penalising Tata Power, Hindalco for delay in developing coal block in Jharkhand		Ø  FM says no rolling back of reforms, more coming soon Ø  NSE cuts connectivity cost for brokers Ø  Excise cut leads to Rs 1/litre profit for OMCs Ø  MetLife to pay Rs 190 cr for stake buyback IDBI Bank to raise $500 mn through MTN issue this week Cable TV digitisation at 68%: I&B ministry
Business Line		Mint
Ø  Coal India to take up price-pooling issue today Ø  Reliance Infra enters commercial cement market Ø  Coal blocks of SKS Ispat, Bhushan Steel get de-allocated Ø  RIL seeks three-fold rise in KG-D6 gas price from April 2014 Ø  Govt deallocates JSW Steel-Himachal EMTA coal block Ø  Telenor free to bid for spectrum without Uninor		Ø  Coal ministry cancels JSW Steel’s block Ø  Exit load charges, fungibility in MFs will happen: Sebi Ø  Shriram Properties raises  Rs.100 cr from ASK Ø  Consumer goods firms may need to hold back price hikes
Financial Express		Financial Chronicle
Ø  Tech Mahindra buys 51% Comviva stake Ø  Oil price hike an achievement: RBI Ø  Hindalco, Tata Power face IMG wrath Ø  RBI cuts CRR, won't slash interest rates Ø  China and US in tit-for-tat WTO complaints exchange		Ø  SBI to decide on lending rates in a day or two Ø  Vodafone considers $2.2b tax provision on Indian law Ø  BSE to suspend trading in 21 securities Ø  RIL share value surpasses maximum buyback price Ø  FM confident of meeting Rs 30,000 cr disinvestment target

(Click on link to view article)

Thanks and Regards

IFIN: IFCI Financial Services Limited