Dated 7 July 2009

INSIDE NEWS:

* Budget may turn out to be a winner for Tata Motors, Ashok Leyland and Mahindra & Mahindra. Watch out for positive announcements for 4-wheelers.

* Hero Honda and Bajaj Auto may see a spurt in the rural push up.

* Recapitalisation of banks will benefit UBI, BOB, OBC, Vijaya Bank and IDBI Bank.

* HDFC, LIC Housing, Gruh Finance to gain the maximum from sops for housing finance. Market grapevine puts HDFC at Rs.5000 and LIC Housing at Rs.2000 in the next three years.

* Cement may experience a neutral impact unless housing and road building is given a tremendous boost in planned outlay.

* 3G phones and systems can only be serviced by Wipro, Patni and Tech Mahindra. So how about pricking them up ‘eyes closed’!

* Too many film stars in the UPA may win some favours for Bollywood and Tollywood and media companies.

* RCF, Chambal, Nagarjuna and Coromandal Fertilisers are the best bets. Jump onto on to them without a life jacket!

* Jain Irrigation is always experiences upper circuit in trading sessions on the budget day the day after. What will it be this time?

* Kamal Nath will have his outlay on roads passed by the FM.

* GAIL and ONGC will benefit by the withdrawal of subsidy burden on LPG and kerosene.

* As indicated VST Tillers Tractors has stunned the market with an EPS of over Rs.50 for FY09 and 1:2 bonus. The stock has caught fancy of investors.

* Macmillan India proposes to change its name to MIL and move away from the Macmillan brand and create an independent space in the publishing BPO industry.

* Choksi Imaging, GRM Overseas, Linc Pens, Sarup Tanneries are some of the companies with attractive dividend yields.

* Unless the Textile sector gets a boost in the Budget, better remain cautious about companies.

* Ansal Buildwell has posted decent results and declared a dividend. There is value built in this stock at current levels.

* BSEL Infrastructure reported Rs.21 cr. net profit i.e. EPS of Rs.2.60 for the March 2009 quarter. Traders can punt on this counter for short-term gains.

* Liberty Phosphate has once again reported a mind blowing performance. Scrip may hit the circuit for days. Catch it if you can!

* The Union Budget is expected to pay to boost the infrastructure sector. So hold on to all infrastructure scrips as they may see a second round of rally post budget.

* Kavveri Telecom has taken over Trackcom Systems International, Canada, which has a vast portfolio of RF products and antennas upto 40 Ghz useful for space, defence and telecom applications. Scrip may move up in circuits next week.