NSE/BSE STOCK MARKET TIPS

BNP Paribas Securities puts buy on Sun Pharmaceutical
1 Nov, 2008.

Sun Pharmaceutical
cmp: Rs 1,122.90
target price: Rs 1,695

Citing a healthy earnings growth rate of 21% till 2010-2011, BNP Paribas Securities India has rated Sun Pharma a “buy”. “The management pointed out the possibility of disengaging from Taro given the recent turmoil in credit markets and availability of far superior assets. We believe this could be a strategy to expedite the transaction and not the real intention,” the brokerage said in a client note.

BNP has valued Taro at Rs 69 a share and assigned an option value of Rs 50 to the ‘visible exclusivity opportunities from the Para IV pipeline.’ “Given its strong cash position, the management hinted at the possibility of exploring other inorganic moves in the US generics space as long as they fit the company’s defined criterion of capital returns,” the brokerage added.

ICICI Securities maintains buy on State Bank of India
1 Nov, 2008.

ICICI Securities has maintained its “buy” rating on SBI, with a price target of Rs1,668, after its second quarter results. “We raise estimated FY09 and FY10 earnings by 8.2% and 4.1% respectively, but lower estimates for other businesses and associate banks,” the brokerage said in a client note.

The state-owned bank’s July-September quarter results exceeded market and ICICI Securities’ estimates. “We believe NIMs (net interest margins) will hold at roughly 3% despite funding cost pressures on account of the recent CRR cut and the pricing power enjoyed by banks,” it added.

ICICI Securities maintains buy on State Bank of India
1 Nov, 2008.

ICICI Securities has maintained its “buy” rating on SBI, with a price target of Rs1,668, after its second quarter results. “We raise estimated FY09 and FY10 earnings by 8.2% and 4.1% respectively, but lower estimates for other businesses and associate banks,” the brokerage said in a client note.

The state-owned bank’s July-September quarter results exceeded market and ICICI Securities’ estimates. “We believe NIMs (net interest margins) will hold at roughly 3% despite funding cost pressures on account of the recent CRR cut and the pricing power enjoyed by banks,” it added.

ICICI Securities maintains buy on State Bank of India
1 Nov, 2008.

ICICI Securities has maintained its “buy” rating on SBI, with a price target of Rs1,668, after its second quarter results. “We raise estimated FY09 and FY10 earnings by 8.2% and 4.1% respectively, but lower estimates for other businesses and associate banks,” the brokerage said in a client note.

The state-owned bank’s July-September quarter results exceeded market and ICICI Securities’ estimates. “We believe NIMs (net interest margins) will hold at roughly 3% despite funding cost pressures on account of the recent CRR cut and the pricing power enjoyed by banks,” it added.

CLSA Asia Pacific Markets puts buy on Cairn India
1 Nov, 2008.

CLSA Asia Pacific Markets has rated Cairn a “buy” citing attractive valuations and expectations of a rebound in crude oil prices. “Cairn is discounting $35/barrel nominal Brent to perpetuity on our DCF (discounted cash flow) valuation models.

On a nearer term, the stock reacts more to spot crude but is now at $40/barrel on this regression,” the French brokerage said in a client note. “We do not see $30-40/barrel as sustainable despite a worsening global oil demand scenario given tight supply and rising costs of production; we model in $70-80/bbl Brent over 2009-10 ,” it added.

DLF buys back 2.5 lakh shares on opening of offer
19 Oct, 2008.

NEW DELHI: Country's largest real estate firm DLF bought about 2.5 lakh shares worth about Rs 7.6 crore on the first day on Friday from the open
market under the buyback offer.

The company purchased 2.5 lakh shares at an average price of Rs 304.19 per share, DLF said in a communique to the National Stock Exchange.

The company has bought back about 1.5 lakh shares from the NSE, while it purchased one lakh shares from the BSE, it added.

DLF today kicked off its Rs 1,100 crore offer to buyback 2.2 crore shares at a face value of Rs 2 each from the open market.

The company has appointed JM Financial Services and DSP Merrill Lynch as its brokers for placing orders on the bourses.
However, the offer failed to boost the company's share prices as the scrip fell by 10.34 per cent to close at Rs 291.30. It had closed at Rs 324.90 per share yesterday.

In July, the company had announced its plan to buy back shares from open market at a price not exceeding Rs 600 a share. Post-buy back, the shareholding of the promoters would increase from 88.16 per cent to 89.32 per cent.

The offer would end on July 9 next year. However, the board in its absolute discretion may decide to close the buy back at an earlier date, if the minimum offer shares have been purchased under the buy back, even if the maximum offer size has not been reached or the maximum offer shares have not been bought back.

Top 10 cos lose Rs 94kcr in a week; SBI defies trend
19 Oct, 2008.

MUMBAI: With stock markets continuing their downslide, the country's elite club of most valued firms lost over Rs 94,000 crore in a week, though S
BI defied the trend and added nearly Rs 4,000 crore to its market capitalisation.

The combined market capitalisation of the country's top 10 firms saw an erosion of Rs 94,448 crore in the past week, dropping to Rs 10,44,245 crore at the end of trading on Friday last week from the previous week's Rs 11,38,734 crore.

Country's largest lender State Bank of India defied trend in the falling market and gained Rs 3,923 crore to Rs 89,768 crore. Last week witnessed banking stocks mostly trading in the negative territory, while SBI outperformed its peers and managed to increase its market capitalisation.

Analysts believe SBI's strong fundamentals support the better performance of its shares amid the bearish market conditions.

However, country's largest private sector lender ICICI Bank, which slipped from the top-20 club last week and lost its position to the HDFC Bank, has regained its position.

While ICICI Bank's market capitalisation rose to Rs 43,606 crore last week from Rs 40,532 crore previously, HDFC Bank's valuation took a marginal dip to Rs 43,533.39 crore.

Country's most valued firm Reliance Industries suffered the highest fall in its market capitalisation of Rs 34,898 crore during the past week. However, the Mukesh Ambani-led firm retained its numero-uno position with a valuation of Rs 2,05,418 crore last week.