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Disappointment continues; Factored in price

Despite 26% YoY growth in consolidated revenue to Rs7.5bn, Usha Martin's operating profit declined by 10% YoY to Rs1.2bn with OPM contracting 620bps to 15.8% due to breakdown of a 30MW CPP impacting power supply and disruptions in captive coal movement. Net profit plunged 62% YoY to Rs131mn on higher interest, depreciation expenses on increased capacity.

Guar yesterday we have seen that market has moved -0.93 on profit-taking, though goo

Nickel Tueaday traded with the negative node and settled -0.54% down at 1184.3

UltraTech Cement’s (UTCEM’s) Q3FY11 results were marginally above expectation with the company reporting a profit ofRs3.2bn, as against our estimate of Rs3.05bn. Pickup in realisations in key Southern markets and higher contribution from the white cement business helped expand margins sequentially by 610bps to 19.6%. Results are not comparable on a YoY basis as Samruddhi Cement was merged with the company effective 1st July 2010. However, on a proforma financial for the combined entity, PAT declined 36% fromRs5.0bn in Q3FY10.

Zinc on Tuesday traded with the negative node and settled -3.14% down at 101.8.  LME zinc prices yesterday were boosted with prices closing at USD 2,275/mt after the previous day sell off. But transactions were still weak yesterday as Dow Jones Industrial Average overnight hit a three-year high of 12,000 points. Meanwhile, the US Federal Reserve (Fed) decided to maintain the current policies, implying the Fed is determined to push forward economic growth. For today's session market is looking to take support at 100.5, a break below could see a test of 99.1 and where as resistance is now likely to be seen at 104, a move above could see prices testing 106.1.

Trading Ideas:

Copper on Tuesday traded with the negative node and settled -2.4% down at 429.3.