Stock to Watch on Friday

The US Senate on Wednesday voted overwhelmingly in favor of overturning a three-decade ban on atomic trade with India, allowing American businesses to begin selling nuclear fuel, technology and reactors in exchange for safeguards and UN inspections of India's civilian nuclear plants. The move is likely to give a sentimental boost to the power and capital goods sectors. One should watch stocks like NTPC, Power Grid, BHEL and L&T.

There is also cheer for Indian oil marketing companies, with crude oil prices falling below $94 a barrel on Thursday--the lowest level in two weeks. Prices fell on doubts the revamped US financial bailout plan will be enough to avoid a protracted economic slump and revive dwindling energy demand.

Light, sweet crude for November delivery fell $4.56 to $93.97 a barrel on the New York Mercantile Exchange. Prices had risen to $100.37 earlier. Oil has fallen about $15, or 13 per cent, in the past month on concerns about waning global energy consumption.On Wednesday, IOC shares had closed 0.62 per cent lower on BSE at Rs 402.65, HPCL ended down 0.80 per cent at Rs 240.40, Reliance Industries declined 2.01 per cent to Rs 1907.25, while BPCL was higher by 1.25 per cent at Rs 365.

However, car makers, which have been facing dwindling sales due to double digit inflation, are seen facing more troubled times with banks set to raise interest rates on car loans further as the festival season is on us. ICICI Bank and Kotak Mahindra Bank are “thinking” about a 100 basis point hike in rates next week. HDFC Bank, however, said it had no such plans. Already, financiers are expecting 15-40 per cent drop in total disbursals this festive season.

Tight liquidity has led to an increase in cash component in car loans, with financed vehicles comprising 90% of all sales four years ago to 62-65% currently.Tata Motors shares Wednesday ended down 1.44 per cent at Rs 339.25, M&M lost half a per cent to Rs 506.55, while Maruti Suzuki was up 1.54 per cent at Rs 697.70.

UK-based Axon Group Plc on Thursday endorsed HCL Technologies Ltd’s counter-bid over Infosys Technologies, as the latter is seen unlikely to react before Oct 10. Axon’s recommendation that its shareholders positively consider a bid from HCL came almost a week after it announced a counter-bid of 441.1 million pound, or Rs3,701 crore, an 8.3 per cent premium to the 407 million pound, or Rs3,415 crore, cash offer made by Infosys on Aug 25. HCL Tech shares ended higher by 5.87 per cent at Rs 205.75 on Wednesday, and Infosys closed up by 4 per cent at Rs 1453.90.
source:Economictimes

Regards,
ARUN
I can be reached at:arunanalyst@rediffmail.com