Fiscal deficit seen at 4.8%

FM Pranab Mukherjee wants to review stimulus, contain deficit – but do this without losing sight of growth. “We have weathered this crisis well,” that was his opening message in this year’s Union Budget. He went on to say that the Indian economy is in a much better condition now than it was last year. However the challenges that he outlined in last Budget continue to remain, he said. This Budget is being seen by all as Mukherjee’s first steps on a journey towards fiscal consolidation. The market is looking for a firm commitment towards fiscal consolidation. It also wants long pending policy reforms, particularly to be pushed into action phase. DTC, GST from April 1 So far, all his statements have been positive. His desire for fiscal consolidation is proven by his move to bring out a status report to control public debt in six months and the definite deadline of April 1 on DTC and GST. On the roadmap for the much–talked about Direct Tax Code, he said “The process of building a simple tax system is near completion,” Pranab Mukherjee said in Parliament today, adding, “We aim to implement the Direct Tax Code by April 1, 2011.” Fuel Price hike not yet The FM said Kirit Parekh’s recommendation on fuel subsidy will be taken up later. In his words: “Decision on Kirit Parekh recommendation to be taken in due course. ” The government will however issue cash to compensate the oil marketing companies. Fiscal deficit FY 11 fiscal deficit to be at 5.5% of GDP. FY12 fiscal deficit pegged at 4.8%. FY13 deficit pegged at 4.1%. FY10 fiscal deficit has been revised to 6.9%.

HDIL - Technical View TARGET ACHIEVED AT 315 ON 26/02/2010

Housing development and infrastructure (HDIL) is nearing its strong support of 288-290. its has formed a triple bottom formation here and if it holds onto 288-290 levels it show a bounce upto 310-315. One can enter it at around 290 with strict sl at 285 (closing basis). Couple of closes below 285 could take the stock lower to 260. HDIL - Technical view

Rupee up

Rupee strengthened on Monday, boosted by gains in other Asian currencies and domestic shares. Rupee ended at 46.19/20 per dollar, after hitting a high of 46.06, versus Friday's close of 46.30/31.

Emami to enter food and beverages sector

Emami is planning its foray into the food and beverages (F&B) sector in a big way starting with its entry into the branded edible oil market. The company launched the 'Healthy and Tasty' branded edible oil manufactured by Emami Biotech at the company's Haldia refinery in West Bengal. The brand would be available in variants like soyabean oil, sunflower oil, palmolein, mustard oil, soyabean blend and palmolein blend. The company plans to clock a turnover of Rs300 crore from the edible oils business. The company was in the process of setting up two more refineries in Gujarat and Andhra Pradesh involving an investment of around Rs1,060 crore. It also plans to produce many items which are needed in the kitchen like masala and biscuits. The stock is currently trading at Rs552 up by 3.60% with a volume of 16k shares on the BSE.

BUY Avon Corporation Ltd for investment

Avon Corporation Ltd - An ISO 9001:2000 Certified company, is a manufacturer of weighing scales under the “Avon” Brand such as - Mechanical Scale, Stylish Digital Glass Scale, Wooden Scale, Wireless Digital Glass Scale, Digital Super Slim Scale, Digital Body Fat Scale, Digital BMI Scale, Digital Body Analysis Scale, Ultra Slim Body Fat Scale, Digital Kitchen Scales, Digital Baby Scales, High Resolution Platform Scales, Ultra Low Profile Platform Scales, Weighbridges and Auto-Vibrator Feeder System with SQC which all are manufactured in their plant located at Baddi, Himachal Pradesh. Avon was established by Mr. Pankaj Saraiya in the year of 1995. Later it got transferred in to Avon Weighing Systems Private Limited in the year 1999 which again got transferred in to Avon Weighing Systems Limited in the year 2004. In the 1st year Avon has reached a turnover of Rs.26 Lakh (Year 1995-96) and within the period of Thirteen years Avon reached to a turnover of Rs. 77.58 Crores (Year 2008-09). During its first year of operations Avon Enterprises was engaged in the dealership of Sartorius (Germany) range of weighing balances mainly used in Diamond industries. Currently Avon is authorized distributors of Kern & Sohn GMBH, Germany & Jawon Medical, Korea; products in India. It was Listed on 3rd July’08 in BSE. Currently trading around 8 and having a P/E of 3.6 , Book value of 11.46 Avon Corporation The company has also being giving Dividend’s for the past few years. Considering the growth and the expansion plans of the company, investors can enter in it for 2-3 years time

Lot size for Additional 11 F&O new Stock

Lot size for Additional 11 F&O new Stock - ADANI ENT (400), APOLLOTYRE (3400), AREVAT&D (750), BGRENEGY (400 ), FORTIS (1300), GODREJIND (1300), JISLIALE (250), MCLEODRUSS (900 ), MUNDRAPORT (300 ), ONMOBILE (550 ), VIDEOIND (850),

Japan Posts Strong GDP Growth

Consumer durables and business investment push higher, but real return on capital continues to drop. Japan's fourth-quarter GDP rose at an unexpectedly strong 4.6% annual rate over the previous quarter. Domestic demand added more to the gain than did net exports, even though external demand has been a key feature of expansion. The main driver of this domestic strength was household consumption (excluding imputed rent), up a real 3.1%. Non-residential investment turned positive for the first time since the beginning of 2008. Additionally, revised data show that GDP has grown for three straight quarters, but remains 6% below its first-quarter 2008 peak. Consumer Durables Automobiles and household appliances are behind the strong household consumption figures. Government subsidies for environmentally friendly products pushed quarterly purchases of consumer durable goods up over 40% (annual rate). The nominal increase was 22%, despite accelerating deflation. Indeed one motivator for consumption is falling prices. The durables deflater, which had been falling a steady annual pace of 6% throughout the 2000s, is now close to -14%. The fall reflects intense competition, excess capacity and a consumer shift toward lower-priced goods, which is not fully reflected in the price index. Demand for non-durables and services barely changed even as durables soared, pointing to the potency of the stimulus. Business Investment Following a 25% collapse over six quarters, real business investment rose 4% (annual rate) at the end of the year. Driven by foreign and domestic demand for machinery and a rare decline in domestic capital stock, producers increased their purchase of investment goods. As exports continued to drive industrial output, core machinery orders jumped 20% in December and were positive for the quarter as a whole. Although the bulk of the increase was for overseas demand, domestic orders ceased their sharp declines. A survey of manufacturers forecast a continued increase in machinery orders into 2010. Trade Buttress GDP-based real exports of goods and services rose a price-adjusted 21.7% in the quarter, pushed along by strong demand from Asia, and not just China. Whereas goods exports to Asia rose at a nominal annual rate of around 33% in the quarter, sales to the United States rose a more modest 13%. Europe saw a rise of 29%. The locomotive effect from Asia continues to be the major driver of Japanese manufacturing, which in turn has moved the entire economy. Confidence is Returning The consumer confidence index, business confidence composite leading index and economy watchers diffusion index for future conditions all turned around at the beginning of 2009. GDP followed within two to three months. Although none of these indexes has returned to pre-recession levels, the recovery track mirrors the speed of the decline. Short-Term Outlook Environmentally friendly subsidies that stimulated consumption were countered by weak employee compensation, which has fallen in real terms by 2.5% from the plateau reached in 2006-2008. Total employment from the household survey has crept up from 2009 lows of 0.5%, but trended aggregate hours have not budged for the past year, and remain around 5% below the previous five-year average. The jobs survey of firms indicates cash earnings continue to fall across all sectors and are now about 10% below year-ago levels. Eventually the labor market should improve as trade recovers and pulls along industrial output. But persistent excess capacity will blunt a jobs recovery for another year or so.