Crude oil price will remain a key concern: Kotak AMC

Domestic market has turned volatile on aggressive crude oil prices. In the view of most analysts, India will have to deal with hiking oil rates and inflation numbers at the same time in order to keep the market steady. Alroy Lobo, chief strategist and global head of equity asset management at Kotak AMC feels that higher oil prices will weigh on market sentiments and will remain as a key concern till oil prices come off. In addition to that, global events have been priced into the market and as a result, the revenue estimates will be shaved.

Talking about sector specific growth prospects, he said that he is constructive on the IT and outsourcing service sector. “IT and outsourcing services should show continuous growth in FY12,” he adds. He was also optimistic about the growth of pharmaceutical sector in India.

Besides being neutral on banking sector, he is underweight on infrastructure, real estate and capital goods sector in India. He feels that inflows were weak due to lack of retail participation; however, he sees a fair degree of valuations in the midcap segment.

Reacting on the RBI’s interest policy update, he said, “RBI is likely to hike interest rates to 50 to 75 basis points this year.”

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HCC can give 50% returns in a year time frame

SP Tulsian of sptulsian.com is of the view that Hindustan Construction Company (HCC) can give 50% returns in a year time frame.

Tulsian told CNBC-TV18, "If you see the trigger for the HCC is the Lavasa clearance because we all know that this stock has taken a beating. It use to rule at about Rs 55 to Rs 60 levels and it has corrected to as low as Rs 30 and now ruling at Rs 35. The expert appraisal group of Ministry of Environment’s partial clearance to the Lavasa project is going to be seen as a big trigger. Then the hearing of the matter before Bombay High Court is fixed on March 25, so probably the recommendation or the order from the Bombay High Court will also come giving the clearance — maybe on a minor maybe creating an environment fund or maybe a minor penalty, which will put a burden of about Rs 100-150 crore on the company which will not be seen with very high or very negative by the market."

He further added, "Once that happens, the way will be open for the Lavasa project to go ahead and probably they can expedite the development work as also plan for the IPO. Taking all this into consideration maybe in next about two-three months time we can see stock bouncing back to about Rs 45 from the current level of 35. So maybe a good idea for the traders as well as for the short-term investor and those who wants to take a call even from a year’s point of view share should be able to give a 50% return from this level."

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Asia stocks rise on Japan progress; yen softer

Japanese stocks jumped nearly 4% on Tuesday amid reports of progress in containing radiation from an earthquake-damaged nuclear plant, and the yen was broadly softer on the possibility of further intervention by major central banks.

Shares elsewhere in Asia posted modest gains, after bouncing on Monday when Tokyo markets were closed for a holiday.

US stocks rose around 1.5% on Monday, buoyed by AT&T's move to buy Deutsche Telecom.

Oil prices were steady, following a 1% rise in the previous session as widening unrest in the Middle East intensified fears of supply disruptions.

Tokyo's Nikkei share average was up 3.9% in early trade, while Nikkei futures on the Osaka Stock Exchange leapt 3.4%.

The Nikkei remained down around 7% on its close on March 11, the day northeastern Japan was struck by a massive 9.0 magnitude earthquake and tsunami that left at least 21,000 people dead or missing and crippled a nuclear power plant.

Benchmark 10-year Japanese Government Bond futures fell 0.28 point to 139.46.

The yen traded around 81.20 to the dollar and eased against the euro to around 115.45.

Last week, expectations of massive repatriations to pay for quake reconstruction drove the Japanese currency to a record 76.25 to the dollar before a rare intervention by the Group of Seven rich nations on Friday to curb its appreciation.

US crude oil futures edged up 8 cents to USD 102.41 a barrel and Brent crude rose the same amount to USD 115.04.

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Crude may head to $150-200/bbl in two years: Baer Cap

Rising crude oil prices have created a new challenge for the domestic market, making it more volatile every passing day. Most analysts on the street feel that it will be difficult for India to achieve desired growth unless crude rates simmer down. In an interview with CNBC-TV18's Mitali Mukherjee, Alok Sama, president and founder of Baer Capital said that crude is going to be a key issue for the domestic market to deal with and higher crude prices will create a negative impact on India’s growth.

“Crude may head to USD 150 per barrel or USD 200 per barrel in next two years,” he added.

Talking about India’s performance as an emerging market, he said that India has been an underperformer for past few months as the market has moved towards a bottom end of the trading range, mainly because of mounting crude prices and inflation. “The Nifty can be seen trading between 5000-6000 levels, while the Sensex will amble between levels of 17,000 to 20,000.” However, he also said that India may see solid performance going forward.

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Zee Ltd –Buy- India Infoline

After consolidating for almost 6 months, Zee Ltd on the daily line chart has signaled a breakout from the ‘symmetrical triangle’ with spurt in volumes. The stock has managed to form a solid base above Rs146 which is 200 DMA, for launching the next leg of upmove.

On the Oscillator front, the MACD is still trading above the reference line which clearly suggest, the intermediate trend in the counter remains up. We advise buying stock above Rs150 with stoploss of Rs146 for Target of Rs158.

Thanks to http://www.stockmarkettipz.info