As expected, stability has returned to the market, thanks to strong buying in technology stocks and some long positions build up by FIIs in the index futures and stock futures. The Nifty, after consolidating around 5,660-5,700, closed at 5,728 on short covering by floor traders and value buyers. The January futures settled at a 10-point premium to spot and shed 1.84 million shares in open interest, mostly through buy-side trades from liquidity providers and value buyers. The top traders covered their short positions above 5,700, the trade summary matrix (TSM) indicates.
Thangamayil Jewellery (TJL) trades in gold, diamond and platinum jewellery. The ornaments are also made to order according to the specific requirements by the customer. TJL has continuously increased its market share to 15 per cent currently in the sale of gold and diamond jewellery in the city of Madurai and surroundings. The strategy of TJL is to focus on Tamil Nadu and tapping the rural population. TJL plans to take the total number of retail showrooms to 9 by 2010-11 and 15 by 2011-12 with a capex of Rs18-20 crore to be funded via internal accruals and IPO proceeds. There is a shift in the jewellery market from the unorganised to the organised players, which will benefit the company. The expenditure incurred towards Hallmarking as well as the promotional efforts is likely to add further brand value. Maintain buy.
The rise yesterday appeared to be driven by short-covering and profit booking. The stock is likely to revert back to support between Rs 1,235 and Rs 1,250. Keep a stop at Rs 1,285 and go short.
The markets have been choppy in the recent past due to domestic concerns regarding rising rates and slower growth. Also, a pick-up in economic growth in the US is making it attractive. In this backdrop, Jitendra Kumar Gupta, spoke to Rahul Singh, managing director and head of equity research India at Standard Chartered Securities India for his views on these developments and the outlook on earnings and the markets.
Consistently improving financials and better outlook have led analysts to up their earnings estimate for the company??It was not surprising to see the TCS stock jump over 5 per cent on Tuesday vis--vis the 1-2 per cent rise each in the broader markets and the Infosys share price, thanks to the strong set of numbers for the quarter ended December 2010. Post its excellent results, which the company announced on Monday evening (after market hours), brokerages have raised their 2011-12 EPS
