Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

IT stocks in favour today
Mon, 21 Feb 01:30 pm

The Indian markets were trading below the dotted line during the previous two hours of trade. Most of the sectoral indices are trading weak with the BSE-Auto, BSE-Realty and BSE-Bankex indices leading the pack. The BSE-IT and BSE-Oil & Gas indices are, however, trading firm.

The BSE-Sensex is trading lower by about 60 points (down 0.3%), while the NSE-Nifty is trading lower by about 20 points (down 0.4%). Small and midcap stocks have also followed suit as the BSE Midcap and the BSE Small cap indices are trading lower by about 1% and 0.9% respectively.

Auto stocks are currently trading weak led by Tata Motors, Escorts, TVS Motor, and Hero Honda. The stock of Hero Honda is trading weak seemingly on the back of news of Honda Motors recently announcing plans of launching motorcycles in the 100 cc space in the coming months. This will mark Honda Motors’ entry into the largest motorcycle segment, the 100 cc category, in which Hero Honda has the largest market share. There are also reports of Honda opening a new India plant this year, which will further boost capacity. It must be noted that Honda was not allowed to enter this segment on its own as it held 26% stake in Hero Honda earlier. Taking away market share from Hero Honda will not be an easy task considering that the company has strong brand awareness and sales reach. The company is believed to have 4,500 outlets in India, while Honda Motors has about 800 outlets. However, not long ago, the management of Bajaj Auto had stated that it was only worried about what changes Honda Motors can bring in the industry in terms of technology.

Stocks from the oil and gas sector are trading firm with Reliance, Petronet LNG and Cairn India trading higher, while ONGC is trading lower. According to a leading daily, ONGC expects to increase daily gas production by 2 m standard cubic meters and 9,400 barrels of associated oil per day initially from KG-Basin once the two offshore blocks - G1 and GS-15 start production from May this year. As per the plan, nearly 2 m cubic meters oil or gas will be produced from these blocks initially. Based on the sustainable tests the production will be scaled up over a period of time. ONGC expects oil and gas production from these fields for the next 15 years with a peak production of 20 m standard cubic meters per day. The increased production will have a significant positive impact on the topline in the future.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "IT stocks in favour today". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.