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Indian market faced selling pressure throughout the day. IT-stocks maintained the strength and closed in green, rest all sectors turned red. The Sensex closed at 19647, down 151 points from its previous close, and Nifty closed at 5892, down 51 points. The CNX Midcap index was down 1.3% and the BSE Smallcap index was down 1.5%. The market breadth was negative with advances at 314 against declines of 986 on the NSE. The top Nifty gainers were BPCL, TCS, Infosys and Bharti Airtel and losers included Hero Honda, DLF, Suzlon and Kotak Mahindra.

Market Outlook

PINC Research has maintained buy rating on Usha Martin Ltd stock with a price target of Rs 120 in its report dated Dec 15, 2010.

As per reports, Usha Martin will achieve 33% volume CAGR over FY10-12 on an improved cost structure, with completion of expansion of metallics capacity by 0.4mtpa and that of steel by 0.6mtpa and full integration from mineral resources to value-added products.

PINC Research estimates 36% EBITDA CAGR and 42% EPS CAGR over FY10-12.

What will move the stock?

PINC Research has maintained buy rating on Tata Steel Ltd stock with a price target of Rs 759 in its report dated Dec 15, 2010.

As per reports, Tata Steel's EBITDA will grow at 48% CAGR over FY10-12, driven by its profitable Indian operations, turnaround at Tata Steel Europe on improved capacity utilization, leaner cost structure, partial resource integration, and better steel profitability.

The report expects Tata Steel's consolidated net profit to be Rs62.2bn in FY11 and Rs72.7bn in FY12. We find the stock attractively valued at 5.0x FY12E EV/EBITDA.

PINC Research has maintained buy rating on NIIT Technolgies Ltd stock with a price target of Rs 278 in its report dated Dec 15, 2010.

NIIT Tech has large exposure to high-growth niche verticals such as insurance and travel. New service lines would boost non-linear growth and lead to improvement in realizations. NIIT Tech has no exposure to the PIIGS zone and it has been able to achieve volume growth in Europe despite economic headwinds.

What will move the stock?

1) Recent wins in the Indian market: Five-year BSF contract of Rs2,280mn;

PINC Research has maintained buy rating on Mahindra & Mahindra Ltd (M&M) stock with a price target of Rs 872 in its report dated Dec 15, 2010.

As per reports, M&M, with significant rural presence, is expected to benefit from strong monsoons this year. The automobile segment is expected to grow 20.8% and 13.2% in FY11 and FY12 respectively, on new product launches. The tractor segment too is expected to grow 10.3% in FY11, due to higher crop output.

What will move the stock?

PINC Research has maintained buy rating on IRB Infrastructure Developers Ltd with a price target of Rs 165 in its report dated Dec 15, 2010.

As per report, JPL for its leadership in UP (the largest print market in terms of readership and print ad value), strong position in growing regions such as Bihar and Jharkhand, better cost efficiency, phased expansion into other forms of media businesses, and a wider portfolio (including Mid-Day).