Markets to open Flat and move with a Positive Bias
Posted on April 08th, 2008 in Personal Finance) by Motilal Oswal Securities Ltd |
Today’s View: Positive Bias
Expect a flat opening . Maintain a positive bias .
The district court in the Hague has upheld an order by the arbitration panel of the International Chamber of Commerce in 2006 directing Tata Communications to allow Reliance Globalcom to upgrade its bandwidth capacity at the cable landing station in Mumbai. The decision comes just ahead of a final verdict on the dispute in which Reliance Globalcom has seperately sought Rs 1600cr in damages for lost business. Positive developments for Rcom . Buy for investments Company trading at 16xFY09 EPS of Rs 32.
Allan Greenspan indicates that US Home prices may stop falling ‘well before’ early 2009. There is some easing of the logjam in the credit markets there, as is evident from the fact that banks have been able to raise capital and AAA rated securities have seen some narrowing of spreads. US dollar have also seen some strength against the Yen and the Euro . Buy ICICI bank for a positional trade where valuations are at 1xP/BV for FY09 .( Book Value of Rs 450 for FY09+Valuations of subsidiaries at Rs 350).
We expect a 18-20% increase in revenue(dollar terms) guidance from Infosys for the next year. This would be at the lower end of street estimates and would translate into an EPS of around Rs 90-92 for FY09. Avoid IT companies till the 15th of April
BHP Billiton has indicated of a 200% increase in coking coal prices for Japanese steel makers .If this was to happen ,then earnings of companies especially SAIL could be hit significantly