Indian Stock Market Outlook Fundamental Picks by FairWealth Securities
Investors with horizon of 6-12 months can consider following scripts for their investment. These companies have potential to give higher returns than index over a long term.
Corporate Highlights - State-run Hindustan Copper plans will invest Rs 3,677 crore to almost quadruple its existing copper ore production capacity to
12.41 million tonne per annum (mtpa) by 2016-17. The entire expansion would be completed by 2016-17 and in the meantime, the company would also take up greenfield projects for exploration and ore production.
Monnet Global (MGL), a wholly owned subsidiary of Monnet Ispat and Energy, has acquired a 100 million tonne Indonesian coal company, PT Sarwa Sembada Karya Bumi at $24 million. The acquisition gives MGL access to one of the largest thermal coal mine spreading over an area of 25,000 hectares. Presently, only 1,500 of the 25,000 hectares have been explored and the company has been able to establish 65 million tonne of coal reserves in the mines and expects these reserves to go up substantially after completing exploration of the whole area.
Reliance Broadcast Network (RBNL) today it will spend over Rs 10 crore on promotion and marketing to support the launch of its new English lifestyle channel -- Big CBS Love-- that could also include advertising during the upcoming IPL. The channel that targets the contemporary urban couples will utilise its multi-media platforms such as radio, out-of-home and other television channel for the promotion.
Coal India Limited's (CIL) 77 projects having a production capacity of almost 185 million tonnes (MT), have been cleared by the government and are under different phases of completion. The projects are among 142 projects identified by CIL, which are to be taken for the XI Plan Period (2007 - 2012), the document added. The remaining 65 projects, according to the Outcome Budget
2011-12 document, having a capacity of 195 million tonnes are under different phases of approval.
The target of adding 62,000 MW of power capacity in the 11th Plan may come under pressure, as commissioning of NHPC's
2,000-MW Subansiri project in Assam is likely to be delayed by at least two years due to resistance from locals. The project was earlier scheduled for commissioning in March, 2012. The Rs 8,000 crore project is facing severe resentment from locals in the northeastern state as they fear that the dam would impact the biodiversity and environment of the state.
Economic Highlights
With slowdown in FDI by 25%, India's dependence on FII inflows, considered as hot money for maintaining its current account, has increased this fiscal. Moreover, the gap between the foreign direct investment (FDI) and the inflows from foreign institutional investors (FIIs) mainly in the stock market has grown to USD 14 billion in 2010-11. While, FIIs invested USD 31.03 billion during April- January 2010-11, India received FDI of USD 17.08 billion during the same period, showing a gap of about 45% between the two. In 2009-10, the difference between FII and FDI was only USD 1.9 billion.