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

Large cap score over smallcaps
Wed, 15 Sep 01:30 pm

Indian indices pared some of their gains on the back of profit booking in heavy weights over the previous two hours of trade. Stocks from the oil & gas and IT space are seeing maximum buying interest, while stocks from the banking and realty space are seeing the minimum buying interest.

The BSE-Sensex is trading up by 163 points while the NSE-Nifty is trading 65 points above the dotted line. BSE-Midcap index is up by 0.2% while BSE-Smallcap index is trading flat. The rupee is trading at 46.37 to the US dollar.

Hotel stocks are trading weak lead by EIH Limited. As per a leading financial daily, in order to compete with the 40 odd international chains that are entering India, The Indian Hotels Company Limited (IHCL) has announced that Vivanta would be its 5 star offering. Under this, 16 existing properties would be converted to the Vivanta brand, bringing the total of such properties to 19. This brand will compete directly with ITC’s Welcome group and Oberoi’s Trident. The 19 properties of Vivanta will have an inventory of 2,500 rooms and 13 properties will be launched in the next 18 months. IHCL plans to expand this brand aggressively and over the next 2 years will have 30 Vivanta hotels with an inventory of 5,000 rooms.

It may be noted that IHCL has 47 properties under construction with a total asset value of around US$ 3 bn. However, the company is betting on an asset light strategy and is entering into management contracts with hospitality players.

Auto ancillaries companies are trading mixed with Sundaram Fasteners and SKF India trading firm while Bharat Forge and Sona Koyo Steer are trading weak. As per a leading financial daily, domestic tyre manufacturers are increasing prices by 2-4% this month as a result of higher rubber costs and rising demand. While MRF has already implemented a price increase of 2.5–4% from 31st August, 2010, Apollo Tyres has announced an increase but has still not implemented it. Ceat and JK Tyres are expected to announce the increase soon. It may be noted that tyre manufacturers have raised prices by 10-14% in four stages since the beginning of 2010. Moreover, rubber prices have shot up by 32% since January this year. The price increase is seen as an attempt by tyre companies to protect their margins.

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 "Large cap score over smallcaps". 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.