Orchid Chemicals may gain on US FDA nod for a generic. Read about Jet Airways, German Remedies, India Infoline, Saregama India, Dr Reddy's Lab

Orchid Chemicals & Pharmaceuticals has received approval from the US Food and Drug Administration for cefadroxil tablets. Cefadroxil is an antibiotic used in treating bacterial infections.

Jet Airways said on Wednesday that increased domestic competition and high fuel prices posed a major challenge. But the company was undertaking cost reduction measures to maintain profitability, Chairman Naresh Goyal said at the annual shareholders' meeting in Mumbai. Jet has also begun hedging its fuel purchases to the extent permitted by the central bank. Jet will also focus on expanding its international operations and would invest about $2.5 billion over the next three years in new aircraft, as well as in training. It was also exploring setting up a training facility and a flight academy.

German Remedies, a part of the Zydus Cadila Group has launched Novolizer a device for Asthma and COPD. The technology for the device is provided by Meda Pharma of Sweden alongwith exclusive rights to manufacture and market Novolizer in India, Novolizer is a third-generation refillable, breath activated multiple dose dry powder inhaler device and can be used by patients suffering from Asthma and COPD.

India Infoline said on Wednesday it plans to expand its presence in Kuwait. "Kuwait is a significant regional trading economy and our presence here will materially strengthen India Infoline's coverage of the Middle East region," Executive Director R. Venkataraman said in a statement.

Saregama India will soon complete the digitization of its musical repertoire and focus more on technology for operational efficiency to improve its bottom line. Meanwhile, Saregama's Indo-US English film Karma Confessions and Holi will be released in the next financial year, keeping in mind international tastes.

Dr Reddy's Lab which has lined up seven new chemical entities in its drug discovery fold is hopeful of its most promising diabetes molecule DRF-2593 to enter the phase-III clinical trials soon. The company had entered into major co-development and commercialization deal with Rheoscience for DRF-2593.

Market may remain firm today [21st Sept 2006]

The market may edge higher tracking steady to firm global markets after the US Federal Reserve kept US interest rates unchanged. Continued fall in crude oil price will also support domestic bourses. Nymex crude was hovering at 6-month low. Oil has fallen around $18 from its July record of $78.70 in its steepest decline in 15 years. The sharp fall in oil price has raised expectations that RBI may keep short-term interest rates unchanged at its credit policy next month.

After the Fed meeting, the focus of the market will shift towards Q2 September 2006 results. Generally, market men expect strong Q2 results from India Inc. If results exceed market expectations, the market may firm up further. The market will also have a close look at what the company managements say about the outlook for the remaining quarters, and for the next year. If Q2 results fail to match up to street expectations, correction may set in.

But volatility may remain high in the near future, ahead of the expiry of September 2006 derivatives contracts next week (28 September).

The Fed on Wednesday said it would continue to watch inflation risks, though they should abate as economic growth slows. The Fed's announcement marked the second time it has kept interest rates unchanged, following its pause in early August after raising rates 17 consecutive times since June 2004.

In Asia, key benchmark indices in Hong Kong, Japan, Singapore and Taiwan were up by between 0.04% to 0.6%.

US stocks rallied on Wednesday as strong earnings reports, lower oil prices, and the Federal Reserve's decision to leave interest rates unchanged increased optimism about the coming quarter and a "soft landing" for the US economy. The Dow Jones industrial average climbed 72.28 points, or 0.63% to end at 11,613.19. The Standard & Poor's 500 Index advanced 6.87 points, or 0.52% to finish at 1,325.18, slightly below its intraday high of 1,328.53, its highest level since early 2001. The Nasdaq Composite Index rose 30.52 points, or 1.37% to close at 2,252.89.

 

Source: Capitalmarket

Day Trading Technical Calls for Sept 21, 2006

Buy Calls Nifty Futures Buy at around 3480 ACC Buy around 940 Infosys Buy at 1824 SL 1810 M&M Buy at about 637 Maruti Buy around 928 SL 920 ONGC Buy at 1173 SL 1160 Reliance Buy on break of 1146 Satyam Comp Buy around 844 SL 837 Tata Motors Buy at about 842 SL 830 Tata Steel Buy around 497 SL 489 TCS Buy at 1027 SL 1010 Wipro Buy at 518 SL 510

Sell Calls MTNL Sell at about 165 Ranbaxy Sell on break of 406 Reliance Sell on break of 1115 Reliance Cap Sell at about 535 SBI Sell at about 1000 Titan Sell around 810 VSNL Sell at about 425

BUY Recommendations for Short Term by Ashwani Gujral, E Mathew and Rajat Bose

- Ashwani Gujral
Buy IPCL with stop loss of Rs 285 for a target of Rs 355

Buy Bharti Airtel with stop loss of Rs 430 for a target of Rs 550

 

- E Mathew
Buy ICSA with a stop loss of Rs 691 for a short-term target of 900

Buy R K Forgings with a stop loss of Rs 110 for a short-term target of Rs 146

 

- Rajat K Bose
Buy TCS with stop loss below Rs 1012 for a target of Rs 1045

Buy Bharti Airtel with stop loss below Rs 453 for a target of Rs 480

Broking house, IL&FS Investsmart is bullish on Reliance Industries and has maintained buy rating on the stock - MoneyControl

Broking house, IL&FS Investsmart is bullish on Reliance Industries and has maintained buy rating on the stock.

IL&FS Investsmart report on Reliance Industries:

Refining and Petrochemicals growth to drive earnings:

"Reliance Industries Limited (RIL), India's largest private sector player and an integrated giant in the energy sector, will continue to benefit from strong cash flows by riding on the favorable demand-supply balance of petro products and petrochemicals in the international markets. Lack of any large capacity additions to the refining capacity will help maintain high GRM's for RIL."

"The petrochemical prices are expected to remain high due to demand supply imbalance (International capacity utilization is more than 90%) and the delay in the capacity additions expected in the Middle East. These factors may continue to drive profit growth for RIL in FY07-FY08. From FY09, the company's growth is likely to be supported by higher revenues from the E&P segment; RIL's aggressive foray into diversified fields such as real estate and retail is also likely to support future revenues."

Key Investment Highlights:

E&P-revenue contribution to increase from FY09E:

"RIL's E&P activities will increase sharply from FY09E onwards, when its KG D-6 and NEC-25 oil-fields commence production. This will increase RIL's E&P revenues by more than 150% in the next three years. During FY07-08E, revenues from E&P will be limited to that from the Panna Mukta and Tapti (PMT) fields only."

GRM to sustain:

"The high complexity of RIL's refinery has enabled it to maintain a GRM USD10.2 per/bbl in FY06, despite registering marketing losses (GRM includes marketing losses) during the year; the company's GRM is much higher than its domestic counterparts. We expect RIL's GRM to sustain in FY07E due to growing demand of petro products in domestic and international markets and absence of any major international capacity addition."

Petrochemicals – delayed international capacity addition will help maintain margins:

"The anticipated capacity additions in the Middle East have been delayed until FY08E. Consequently, the demand-supply balance in the international markets is likely to remain favorable, contributing to firm global prices. Therefore, we expect RIL's current EBITDA margins, at 23%, in the petrochemicals sector to sustain.

Valuation:

"We recommend a 'buy' on the stock. We have based our recommendation on the E&P, refining, and petrochemical businesses; RIL's initiatives in the real estate and retail sectors have not been included due lack of information."

Source:-Moneycontrol