ValueGuide: Volatility gets an extension

FROM SHAREKHAN'S DESK

Volatility gets an extension

It has been a sombre beginning for this equity market this year. The benchmark index registered a double-digit decline over the past one month even as the equities markets rallied globally. In the year to date India is the second worst performing market globally with Egypt being the worst. Our market dropped on macro-economic concerns of persistently high inflation, hardening of interest rates and an unexpected sharp slowdown in the industrial production. Even though corporate earnings for Q3FY2011 were largely in line with expectations, the market witnessed earnings downgrades in several companies across sectors on account of concerns related to margin pressure from the rising raw material cost and spiraling energy prices. The eruption of social unrest in Egypt and some other countries in the neighbouring region towards the end of the month added to the market?s woes. Given the global concerns and certain India-specific issues, the foreign institutional investor (FII) flows reversed with the foreign investors withdrawing close to one billion dollars in January 2011 alone.

SHAREKHAN TOP PICKS

Sharekhan top picks

STOCK IDEA

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STOCK UPDATE

Ashok Leyland: Price target revised to Rs84
Bajaj Holdings & Investment: Price target revised to Rs1,042
Bank of Baroda: Price target revised to Rs998
Bharat Heavy Electricals: Price target revised to Rs2,781
Cadila Healthcare: Strong results; in line with estimates
Corporation Bank: Price target revised to Rs735
Eros International Media: Stellar performance
Greaves Cotton: Full throttle to continue
HCL Technologies: Price target upgraded to Rs622
Hindustan Unilever: Price target revised to Rs246
Housing Development Finance Corporation: Higher treasury income drives PAT growth
ICICI Bank: Price target revised to Rs1,190
Infosys Technologies: Upgraded to Buy
Ipca Laboratories: Improvement in operating margins?key monitorable
IRB Infrastructure Developers: Price target revised to Rs285
ITC: Price target revised to Rs207
JB Chemicals & Pharmaceuticals: RoW to drive growth
Kewal Kiran Clothing: Robust performance?led by volume and realisation
Larsen & Toubro: Upgraded to Buy
Marico: Price target revised to Rs140
Orient Paper and Industries: Upgraded to Buy
Polaris Software Lab: Intellect going strong, margins concerns remains?
Punjab National Bank: Price target revised to Rs1,460
Reliance Industries: Q3 performance meets estimates
State Bank of India: Price target revised to Rs2,990
Tata Consultancy Services: Impressive margin performance
Thermax: Upgraded to Buy on correction
Torrent Pharmaceuticals: Q3 results in line with estimates
UltraTech: Cement Results ahead of estimates
United Phosphorus: Price target revised to Rs218
V-Guard Industries: Price target revised to Rs237
Yes Bank: Result in line with expectations