Posts Tagged ‘Hero Honda’

Equity News Round Up 11th – 15th October




•Food inflation eased marginally to 16.24% for the week ended September 25, from 16.44% in the previous week, as improved supplies lowered prices.



Capital Goods


•BHEL has bagged a `3,700-crore from Karnataka Power Corporation Ltd for setting up the 700 MW Bellary Thermal Power Station in Karnataka.


•Lanco Infratech informed that its Vidarbha power project based in Maharashtra, has achieved financial closure. The company has raised debt to the tune of `5,549 crore to fund the project which has an estimated cost of around `6,936 crore. The rest of requirement is funded by equity of `1,387 crore.


•Larsen & Toubro (L&T) has bagged `1,585 crore orders in July-September period from the construction segment. Of the `1,585 croreorders, `435 crore order is for construction of building projects fromleading developers while `781 crore orders is from “clients forconstruction of hotel, office building and add on orders from its ongoing airport and commercial building projects”.





•Hero Honda has launched a limited edition of its 100cc motorcyclePassion Pro, priced at `46,300 (ex-showroom Delhi).



Realty/ Construction


•IVRCL Infrastructure and Projects said its various divisions have wonorders worth `1,120 crore from sectors including power and transportation. The company’s water division bagged the highest `451crore order, followed by `440 crore by building divisions,`136 crore by transportation division and `92 crore by power division.


•Punj Lloyd Group has bagged a `539-crore contract from the state owned gas utility GAIL India for laying a natural gas pipeline from Dabholto Bangalore. The project will be executed over a period of 13 months.





•Cadila has got approval from US health regulator to market high blood pressure treatment tablets, Losartan Potassium and Losartan Potassium and HCTZ in the American market. The US Food and Drug Administration approval has been granted to the firm’s subsidiary Zydus Cadila, for Losartan Potassium tablets in the strengths of 25 mg, 50 mg and 100 mg and for Losartan Potassium and Hydrochlorothiazide tablets in the strengths of 50/ 12.5 mg and 100/25 mg.





•NTPC may invest over `10,000 crore to set up a 2,640 megawatt (Mw)thermal power project at Gidarbaha in Punjab. The Project shall be setup as regional power project by NTPC and would also be the company’s first in the state.


•US Pending Home Sales Index jumped more than four percent for asecond straight month, to 82.3 in August (2001 = 100). The prior month was revised to 78.9, shaving July’s gain to 4.5 percent. The readings point to a second straight jump for existing home sales which surged nearly eight percent in August.


•US non-farm payroll employment fell by 95,000 jobs in September following a revised decrease of 57,000 jobs in August. Economists had expected employment to come in flat compared to the loss of 54,000 jobs originally reported for the previous month.


•UK output price index rose 4.4% annually in September, compared with a4.7% gain in August. The increase was a touch higher than the expected 4.3% rise. Output prices gained 0.3% month-on-month after stagnating in August. Excluding food, beverages, tobacco and petroleum, output prices increased 4.6% annually.


•The Japanese Cabinet approved a 5.05 trillion yen ($62 billion) new stimulus package to boost the economy amid widespread concerns that it could slip back into recession. The new package, which will befinanced by an extra budget, is aimed at addressing labor market issues,social welfare and healthcare services. The government is trying to finalize this additional budget by the end of this month.


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Indian Stock Market Reaction To Indian Budget :)

Indian stock markets, reacted positively to the budget, with a benchmark index breaking free to close 237 points higher than its previous weekly close. 🙂

The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) moved up 237.92 points or 1.47 percent to end Friday at 16,429.55 points, 237 points above its previous weekly close at 16,191.63 points.

The broader S&P CNX Nifty of the National Stock Exchange (NSE) too posted gains to end the week at 4,922.3 points, up 77.4 points or 1.57 percent.

Broader market indices, however, ended the week in the red with the BSE midcap index closing 0.54 percent down and the BSE smallcap index 1.67 percent lower.

“Though it is not possible to keep everyone happy, the finance minister has done a commendable job. This was evident from the way markets reacted to the announcements,” said Jagannadham Thunuguntla, the equity head for brokerage firm SMC Capitals.

“The budget did help in breaking from the side-ways movement, but it is not going to help much going forward. A lot of the budget news has been factored in and one should not expect a major rally,” he added.

The top gainers during the week included Hindalco (up 7.7 percent), Maruti Suzuki (up 6.8 percent), L&T (up 6.2 percent), Hero Honda (up 5.5 percent) and ICICI Bank (up 5 percent).

Among top losers were ITC (down 6.5 percent), Reliance Communications (down 2.8 percent), Tata Power (down 2.2 percent), Hindustan Unilever (down 2.2 percent) and Reliance Industries (down 0.6 percent).

Data with markets watchdog Securities and Exchange Board of India (SEBI) showed that foreign funds were net buyers during the week, having bought scrips worth $313.56 million.

Benchmark indices in the US ended slightly lower this week with Dow Jones industrial average dipping 0.8 percent, the Standard and Poor’s 500 Index 500 down 0.4 percent and the Nasdaq composite falling 0.3 percent.

Exit Bharti Airtel: SMC Global

an Interview with Rajesh Jain

Excerpts from an Interview with Rajesh Jain, Research Head of SMC Global.

Rajesh Jain of SMC Global giving a technical perspective about the market moves, portfolio and related factors.


Q. I hold a few Bharti Airtel shares @ Rs 428. What should I do?

Jain: The stock is good. It had a fantastic run since 2004, but after the bull run, it underperformed. If you are a long-term investor, you should diversify and invest in infrastructure. 🙂

Q. I hold 100 Tata Motors shares @ Rs 305. Should I hold?

Jain: I think you should book profits, because it will take some time for the company to pick up volumes and come out of its interest burden.
For that, there should be a revival in the overall market.
Till that time, I don’t think the company will be able to compete with players like Maruti and Mahindra & Mahindra.


Q. I hold a few Adani Enterprises shares @ Rs 820. My investment horizon is 5 years. Should I hold?

Jain: You need to have a lot of patience. I would say keep some stop-losses and diversify your investment. 🙂

Q. I have 500 Indiabulls Real Estate shares @ Rs 245. What should I do?

Jain: For this stock, Rs 250-260 is a good resistance zone. On the lower side, Rs 220-230 is a good support zone.
It is consolidating between these levels.
The day it closes above Rs 260, you can set a target of Rs 290.
On the lower side, if it breaches Rs 220, it will be bad.
So, keep a stop-loss of Rs 220 and wait for a target of Rs 290.


Q. I hold 2000 Ispat shares. What should I do?

Jain: I am not so buoyant about Ispat. Though we have seen a bull cycle for four years and a correction for two years afterwards, this is one stock which has not moved up too much.
Big companies like SAIL have not shown too much of a strength either.
If the giants have not shown good performance, I don’t think companies like Ispat can show better results.
Performance-wise also, it has accumulated losses.
It needs a lot of time to come out of the accumulated losses.


Q. What should I prefer? RIL or Tata Steel?

Jain: I will go for Tata Steel, because the commodity bull cycle is going on, and, as commodity guru Jim Rogers says, the next cycle is commodities.
In the short term, RIL may be able to do well and Tata Steel may not do that well.
Overall, I am bullish on commodities. I think Tata Steel would be a better bet. 🙂

Q. I hold 500 Indian Hotels shares @ Rs 79. My investment horizon is 1-2 months. What should I do?

Jain: This stock is a defensive play.
When the market is in an aggressive mode, defensive stocks generally lag around.
I would say you will have to wait till the Rs 79 levels. It has a huge resistance at the Rs 80 levels. You need to have a lot of patience with this stock. 🙂

Q. I have short listed Nestle, Hero Honda, L&T. Where should I put my money?

Jain: These are excellent companies.
I would suggest you to go for all the three as they will beat inflation and you will get good returns in the long term. 🙂


Q. Can you guide me through some auto ancillary stocks?

Jain: The segment has started showing revival. I think one can go for Sona Koya.


Source :–smc-global.html

Corporate India, global cues push Sensex to 13-month high

Corporate India, global cues push Sensex to 13-month high

Corporate India provided a much needed boost to investors this week and buying interest at Indian equities markets resurfaced in the wake of a good set of earnings reports, pushing a key index to a 13-month high.


Other Asian markets also provided a prop to their Indian peers, with some key indices touching new highs.

The 30-share sensitive index ( Sensex) of the Bombay Stock Exchange (BSE) rose 291.35 points or 1.89 percent over previous Friday’s close and ended trade at 15,670.31 points.

This was its highest closing figure since June 17, 2008.


The broader S&P CNX Nifty of the National Stock Exchange (NSE) followed the Sensex, moving up 1.5 percent from its last weekly close to end at 4,636.45 points.


Lesser market capitalized scrips did better with the BSE’s midcap index closing 3.52 percent higher than its previous weekly close, while the BSE smallcap index was up 2.57 percent.


Data with markets watchdog Securities and Exchange Board of India (SEBI) showed that foreign funds were net buyers during the week, having bought scrips worth $735.7 million.

In July, foreign investors bought a total of $2.28 billion.


‘Positive results by corporates is proof that the economy is on the verge of a turnaround. This will continue to help the markets gain momentum,’ said Jagannadham Thunuguntla, equity head at SMC Capitals.


The Nifty, however, closed 0.08 percent higher at 4,572.3 points. 🙂

The Reserve Bank of India (RBI) announced the first quarterly monetary policy review on Tuesday, but it turned out be a non-event for the markets with the central bank maintaining a status quo on key policy rates.

The week’s top gainers on the Sensex were Ambuja Cements (up 14.1 percent), Tata Motors (up 13.1 percent), Tata Power (up 11 percent), TCS (up 9.1 percent) and ITC (up 7.3 percent).

Among losers were Hero Honda (down 7.5 percent), Grasim (down 3.4 percent), Cipla (down 3.1 percent), Reliance Industries (down 3 percent), and Reliance Power (down 2.6 percent).

Bajaj Auto phases out Pulsar 200; await new Pulsar 220 rew


Bajaj Auto has phased out the Pulsar 200 model to make way for the new Pulsar 220, as both were priced on a par, despite the latter being more powerful.

The new Pulsar 220, launched three weeks earlier, is a refurbished version of the earlier model launched in December 2006. The Pulsar 200 was launched in January 2007 and carried an ex-showroom price of about Rs 70,000.

However, to take on competing products in the premium category (priced upwards of Rs 65,000) with the likes of Yamaha FZ16, Fazer and R15, Hero Honda’s Karizma, TVS Apache 180 and the Honda CBF Stunner PGM-FI, Bajaj has slashed the price of Pulsar 220 by more than Rs 15,000. It will now be sold at Rs 70,000, ex-showroom.

S Sridhar, chief executive (two-wheelers), Bajaj Auto, said, “The carburettored version of the new Pulsar 220, which has been launched, offers higher power and better performance at a much lesser price.

So, continuing with the Pulsar 200 was not possible, as it was priced in the similar range. We wanted to offer the buyers a better bike at an affordable rate.”

The bike, however, is still available in select showrooms at the earlier price without any discounts. “Some units of the Pulsar 200 are available with us and there will be no more supply of it from the company,” said a Mumbai-based dealer of the Probiking showroom, Bajaj’s speciality outlet that sells only premium bikes.

The Pulsar 200 has a 198.8cc engine, which delivers 18 bhp power, while the Pulsar 220 has a 220cc engine, which generates 21.04 bhp of peak power. Although the new Pulsar 220 is heavier than the Pulsar 200 by five kg, at 150 kg, it is faster than the smaller sibling at 144 km/hour, as compared to 130 km/hour.

Currently, the company produces three models under the Pulsar brand — Pulsar 150, Pulsar 180 and Pulsar 220. All the three models have only recently gone through a face-lift labelled as the ‘2009 edition’.

Meanwhile, in a bid to increase its market share in the 100 cc category, Bajaj Auto today launched its popular selling model “Discover” in the entry level segment.

Bajaj held a marketshare of 43 per cent in the premium 150 cc segment contributed by sales of its premium bike ‘Pulsar’ and a 9 per cent market share in the entry level segment through “Platina” as of April-June 2009.

With the latest launch, the company hoped to garner a significant market share in the segment this fiscal.

Source: Business Standard