>MERCATOR LINES (RELIGARE)

Winds of change

We met the management of Mercator Lines (MLL) recently to discuss the current outlook on the shipping sector and the company’s business prospects. Following are the key takeaways:

■ Surge in Baltic Dry Index reflects changing conditions: The Baltic Dry Index has tripled over the past five months on increase in Chinese import of iron ore, increase in tonne-mile demand on Brazil-China route and congestion at Chinese ports.

■ Tanker market to recover only in winter: The tanker market is expected to remain subdued in the near term. However, we anticipate a recovery in the winter months on account of seasonality and indications that the OPEC is unlikely to cut production at current crude rates.

■ Contract renegotiation crucial for MLL: Currently, time charter rates are 2–3x higher than spot market freight rates. We believe that MLL will strike term contracts sooner than later given that supply in the dry bulk market is slated to increase in CY10. The company’s term clients have sound credit ratings as certified by various rating agencies. Hence, the risk of default is minimal.

■ Rig contribution set to increase: We anticipate that the rig contracted to Great Eastern Shipping is likely to contribute 8% of the topline and 18% of the profits in FY10 on a consolidated basis. The rig, operating under the Singapore subsidiary, MLL Offshore, is exempt from paying tax for a period of five years.

■ Dredger and coal mining business to supplement shipping performance: A major capital dredging project at Sethusamundaram is currently being carried out, in which an estimated 83mn cubic metres of sediment has to be dredged. As per the last update, only 34% of the dredging work has been concluded, leaving tremendous untapped potential for coming years. MLL has indicated the likelihood of further dredger acquisitions to tap the market in India. Also, its coal mining contribution is expected to supplement performance as and when global coal prices exhibit signs of improvement.

■ Revised target of Rs 79: We are rolling forward our target price to FY11, valuing the stock at 4x EV/EBITDA. Our revised target price stands at Rs 79 (earlier Rs 65), offering a 22% upside from current levels. We maintain our Buy rating on the stock. At our target price, MLL is trading at a P/E of 5.5x, EV/EBITDA of 4.9x and P/BV of 0.7x FY11E. We note that an unanticipated increase in dry bulk tonnage or change in contract mix (spot to term ratio) will depress freight rates and impact our estimates.

To see full report: MERCATOR LINES

>RURAL ELECTRIFICATION CORPORATION (RELIGARE)

Fee income boosts PAT

Rural Electrification Corporation’s (REC) Q4FY09 results are in line with our estimates on the net interest income (NII) level, where growth came in at 20% YoY. But PAT was much above estimates due to higher fee and other income. Loans grew 31% YoY and asset quality remained healthy with gross NPAs at 0.14%.

■ Outstanding sanctions at Rs 0.8tn: Loan disbursals remained stable YoY at Rs 44bn in Q4FY09. For the full financial year, disbursals grew by 32% YoY to Rs 166bn; however, sanctions declined by 12% due to the higher base in FY08. The company has outstanding sanctions of over Rs 0.8bn which provide strong visibility on loan growth for the next few years. We expect a 16% CAGR in disbursals over FY09-FY11 and with repayment at 14–15% of loan assets, we project a 23% growth in loan book during the same period.

■ Margins to be maintained at 4% in FY10: Reported yield on assets improved by ~110bps during the quarter to 11.8% due to a higher PLR and re-pricing of assets, whereas the cost of funds increased by only 86bps as the company raised capital through the issue of commercial paper available at lower costs. Consequently, the reported net interest margin (NIM) improved by ~40bps to 4.25%. We expect the NIM to remain at 4% in FY10 due to re-pricing of loans at a higher rate, but to decline by 20–30bps in FY11.

■ Higher fees from RGGVY boosted other income: REC receives fee income equal to 1% of loans disbursed under the RGGVY scheme. In Q4FY09, the company disbursed loans of Rs 2.7bn under the scheme. But fee income was higher at Rs 390mn as REC booked income on disbursals made in earlier years as well.

■ Marginal increase in NPA: Gross NPAs increased from Rs 640mn in Q3FY09 to Rs 690mn in Q4FY09 due to delinquencies on one account. However, the company has started receiving payments from the account in this quarter.

■ Estimates, target raised but upside limited – Hold: We are raising our FY10 PAT estimate by 6% to factor in higher loan growth and fee income. We also introduce FY11 numbers. PAT is projected to log a 16% CAGR over FY09-FY11. REC may benefit from a possible reduction in risk-weights on government guaranteed loans (constituting ~40% of loan book) from 100% to 20%, which will help it maintain its high leverage and consequently robust ROE.

We are revising our price target to Rs 135 to factor in higher profitability and sustained ROE. We are also assuming a favourable ICAI decision on tax benefits. While we like REC for its strong visibility and asset quality, we believe that absolute returns in the near term will be limited due to the sharp appreciation in stock price in the last three months. Hold.

To see full report: RURAL ELECTRIFICATION

>DEEPAK FERTILIZERS & PETROCHEMICALS CORP (RELIGARE)

Margins improved on fall in raw material and fuel costs

■ Topline flattish as expected: Deepak Fertilisers & Petrochemicals Corp (DFPCL) reported 1.2% YoY decline in revenues to Rs 3.3bn in Q4FY09, which was inline with our estimate of Rs 3.4bn. The revenues were flattish, primarily due to lower revenues from the chemicals business, which stood at Rs 1,674mn in Q4FY09, registering 31% YoY decline.

The subdued performance in the chemicals segment was driven by lower revenues from traded chemicals, which stood at only Rs 17mn in Q4FY09 as against Rs 417mn in Q4FY08. Revenues from manufactured chemicals also witnessed 17% YoY decline on the back of lower realisations due to fall in chemical prices. However, the fertiliser segment registered strong performance
with 78% YoY growth aided mostly by better realisations in speciality fertilisers.

■ Significant improvement in margins: DFPCL registered significant improvement in EBITDA margins, which improved 152bps YoY and 653bps QoQ to 20.4% in Q4FY09, better than our expectation of 16.9% for the quarter. This was primarily because of lower raw material and fuel costs. Among the raw materials phosphoric acid prices declined 32% YoY, whereas the company has saved ~Rs 320mn on fuel cost due to ~53% YoY decline in naphtha prices.

■ Strong bottom line growth: DFPCL’s net profit improved 27% YoY to Rs 396mn, above our expectation of Rs 345mn. This was despite a 91% YoY increase in financing costs, which increased because of issued of debentures, driven by improvement in operating performance as well as a 155% YoY increase in other income during the quarter.

■ Capacity expansion projects on track: The company is currently implementing three growth projects. The 15,000tpa shore-based ammonia storage tank at JNPT has been competed in Q4FY09 and will now give the company the advantage of make-or-buy option in ammonia. This storage tank will reduce the company’s reliance on natural gas as feedstock. DFPCL is also coming up with a 150,000tpa expansion of its existing 300,000tpa nitric acid plant, which will be commissioned by H1FY10. In addition, it is expanding its ammonium nitrate facility at Taloja by 300,000tpa, which will come on-stream by the end of Q2FY11.

■ Valuations attractive at 6x FY10E earnings: Currently, the stock is trading at a P/E multiple of 5.4x on FY10E. We valued the company at a P/E multiple of 6x its FY10E and provide a target price of Rs 110. The stock has appreciated almost 50% over the past one week and leave lower potential upside from current level. Therefore, we maintain our Hold rating on the stock.

To see full report: DEEPAK FERTILIZERS

>CINEMAX INDIA (RELIGARE)

Margin pressure continues

Sales in line with estimates: Cinemax India’s consolidated revenues for Q4FY09 rose 34.9% YoY to Rs 334mn, broadly in line with our estimates. The exhibition business was the main revenue growth driver, rising 43.4% YoY to Rs 308.3mn. Income from the retail space stood at Rs 22.5mn, while windmill and distribution/production revenue stood at Rs 3.1mn and Rs 0.3mn respectively.

Exhibition revenues increased because of the addition of 22 new screens during the year along with higher footfalls, although the average occupancy dipped to 25% in Q4 from 29% in comparable properties, and average ticket price (ATP) declined marginally to Rs 129. Occupancy in non-comparable properties was 28% and ATP stood at Rs 118. F&B spend per head at comparable properties increased to Rs 31 from Rs 29 in Q4FY08, whereas it stood at Rs 27 for noncomparable properties.

Lower occupancy rates and decline in ATP lead to margin pressure: Operating profit declined 25.8% YoY to Rs 35mn owing to lower occupancy rates and ATP. Film distribution cost increased to Rs 67.7mn, rising by 70bps as a percentage of net revenue to 20.3%. Other expenses rose by 68% to Rs 182mn, accounting for 54.4% of net revenue (up 1,080bps). F&B cost and employee cost stood at Rs 18.4mn and Rs 30.6mn respectively.

Net profit drops 55.8% YoY: Cinemax reported a PBT of Rs 2mn in Q4FY09 against Rs 37mn in Q4FY08. In spite of a tax write-back of Rs 8mn, PAT declined 55.8% YoY to Rs 10mn.

Operational highlights – 16 new projects in the pipeline: Cinemax is present in 25 locations as of Q4FY09 with 74 screens, including 5 added during the quarter. The number of footfalls has increased from 6.6mn in Q3FY09 to 8.5mn in Q4FY09. The company has a total of 16 new projects in the pipeline which will add 55 screens and 12,678 seats by FY10.

Earnings estimates cut – Hold: The stock is quoting at 10.2x P/E and 7.5x EV/EBITDA on FY10E. We have reduced our net profit estimate for FY10 by 12.4%, on account of lower revenue estimates given the standoff between producers and multiplex owners. In addition, we have switched over from a DCF-based valuation to a P/E model in order to capture the overall re-rating in the media sector. Our revised price target thus stands at Rs 61, based on a P/E of 10x on FY10E. We upgrade the stock from Sell to Hold.

To see full report: CINEMAX INDIA

>TOP PICKS (RELIGARE SECURITIES)

■ Our Top five picks with a time frame of around three months are :

• Suzlon Energy – Possible target of around Rs.120 or Rs.145. Support at Rs.50.

• DCB – Possible target of around Rs.55-Rs.60. Support at Rs.21.

• Bombay Dyeing – Possible target at Rs.345-Rs.400. Support at Rs.165.

• IB Real Estate – Support at Rs.115. Double bottom reversal target at around Rs.260. Double bottom reversal gets completed when the scrip trades above Rs.172.

• ABAN –Support at Rs.390. Last swing low at Rs.221. Technical target at Rs.1000-Rs.1100.

■ We have scanned the graphs of a number of companies to identify five tradable ideas with a time frame of around three months.



■ We have used the classic or traditional system of technical analysis on the weekly chart to identify these scrips.



■ On the average front, we have used three simple moving averages, the 5 week, 13 week and 30 week simple moving averages. As per our system when the 13 week moves above the 30 week average, the medium-term trend reverses direction.



■ Our support zones are identified with the help of these moving averages and the last swing lows posted.



■ Double bottom reversals were seen in a few scrips and the measuring implications were taken into account.



■ The target analysis was largely based on pattern implications, retracement of the last leg of the fall and retracement levels of the earlier fall.



■ Three or more segments of the fall were also taken into account as W.D.Gann was a great believer of this.



■ Rounding bottoms were also noticed and taken into consideration.



■ Thus, over various parameters that have traditionally stood the test of time have been taken into account to identify these scrips.

To see full report: TOP PICKS

>Mind Tree (RELIGARE)

Forex loss disappoints, guidance upbeat

Revenues in line, margins disappoint
MindTree’s dollar revenues have slipped 9.1% QoQ during Q4FY09, owing to sequential dips in volumes and pricing (consolidated) by 7% and 2% respectively. Individually, dollar revenues for MindTree and Aztec decreased by 9.1% and 9% QoQ respectively. The EBITDA margin for the quarter, at 25.7%, shed 484bps QoQ as against our expectation of a 235bps fall. The steep margin decline is attributed to a 6.5% QoQ rise in cost of revenues in MindTree, despite the fall in topline.

Forex losses continue to erode profits
Net profit at Rs 211mn came in significantly below our estimate of Rs 437 due to above-expected forex losses. The company provided for forex losses of US$ 4.2mn during the quarter as the rupee depreciated further by 4.4% on an end-to-end basis.

Upbeat FY10 guidance
The management expects a marginal decline in revenues during Q1FY10, after which it sees a recovery in demand based on discussions with existing customers and its new deal pipeline. Accordingly, it has guided for FY10 revenues of US$ 290mn–300mn, a growth of 6.5–10% YoY. EPS for FY10 is guided to be in the range of Rs 49.3–50.9, much ahead of our expectation of Rs 37.9 and the consensus estimate of Rs 39.7. The guidance is based on an exchange rate assumption of Rs 51.4/US$.

Estimates revised upwards
We are increasing our FY10 revenue and earnings estimates for MindTree by 9.3% and 17% respectively, considering the strong management guidance. Our FY10 EPS estimate of Rs 44.4, however, continues to fall short of the lower end of the guidance. Though we believe the company could achieve its dollar revenue guidance, matching up to the earnings target would prove difficult considering the margin headwinds expected in FY10.

Revising target to Rs 244, maintain Sell
Consequent to the upward revision in estimates, we are increasing our target price from Rs 184 to Rs 244. We have valued MindTree at 5.5x on FY10E consolidated earnings of Rs 44.4. At the current price of Rs 307, the stock is trading at 6.9x and 6.4x on FY10E and FY11E earnings, which we believe are rich valuations. We maintain a Sell on the stock.

To see full report: MIND TREE

>WEEKLY MARKET RECAP (RELIGARE SECURITIES)

Market this week was dominated by bulls with the BSE Sensex wrapping the week on a cheerful note and registering a gain of 12.1% and Nifty also registered a gain of 10.7%.Foreign Institutional Investors were net buyers to the tune of Rs. 1,520 crore while the Mutual Funds were net buyers to the tune of Rs. 443 crore.

Inflation continued its declining trend inching closer to zero mark. The annual wholesale price index-based inflation fell further to 0.27% for the week ended Mar. 14, 2009 as compared to 0.44% a week ago. It stood at 8.02% during the corresponding week of the previous year.
Six core infrastructure industries comprising of crude oil, petroleum refinery products, coal, electricity, cement and finished carbon steel expanded by 2.2% in the month of February from 1.4% in the previous month. However, the growth was low compared to the year-ago level
of 7%. Growth for the April-February period fell to 3% from 5.8% a year ago.

National Advisory Committee on accounting Standards (NACAS), has favored the suspension of rule that requires firms to mark-to-market foreign exchange assets and liabilities until April 2011 as reported. The Confederation of Indian Industry (CII) had recommended the suspension of this rule known as AS-11, which required firms to mark-to-market foreign exchange assets and liabilities for two years, as it could severely distort earnings of many companies at a time when market conditions are not normal. Indian industry may post better results if the recommendations of are accepted. Many companies would post higher profits, as 27% rupee depreciation against dollar in the past one year, would not be reflected in their results. This would lead to higher tax collections for the government.

Kalpataru Power Transmission Limited (KPTL), has bagged three orders worth Rs 399 crore from Power Grid Corporation of India Limited (PGCIL) for 765 kv and 400 kv transmission line projects. The orders are for supply and construction of transmission lines in Bihar, Chhattisgarh and Assam. The delivery schedule of these projects range between 18 to 24 months. The order book of Kalpataru Power is now in excess of Rs 5000 crores.

On the international front, the number of people collecting U.S. jobless benefits rose to a record 5.56 million, indicating more Americans are spending longer periods out of work. Initial claims topped 600,000 for an eighth straight time. Total benefit rolls jumped by 122,000 in the week ended March 14, from 5.44 million the previous week.

To see full report: WEEKLY REVIEW 270309

>Weekly Market Recap (RELIGARE SECURITIES)

Sensex belled the week on a firm note tracking encouraging global cues with the BSE Sensex registering a gain of 2.4% and the Nifty registering a gain of 3.2%. Foreign Institutional Investors (FIIs) were net buyers to the tune of Rs. 876 crore whereas the Mutual Funds were net buyers to the tune of Rs. 1,137 crore. India`s benchmark wholesale price index (WPI), inflation fell sharply to 0.44% for the week ended Mar. 7, 2009 as compared to 2.43% a week ago. It was at 7.78% during the corresponding week the previous year.

Mercator Lines has taken delivery of its new build Jack Up Rig at a cost of Rs. 1,000 crore approx from the world's leading shipyard Keppels FELS, Singapore. The rig was delivered on 11th March, 2009 about three weeks before schedule and has been immediately deployed under a firm bare boat contract for a period of three years. The new built state of the art premium Jack up Rig acquired through its Singapore based wholly owned subsidiary, Mercator Offshore Ltd , is Class B Mod V capable of working in a water depth of 30,000 ft.

Tata Communications has announced that the company is an anchor tenant customer on the privately owned SEACOM cable system. The SEACOM cable system enables it to provide fully integrated network services from South Africa, Mozambique, Tanzania and Kenya to its networks in Europe, Asia and India. Another subsidiary company, Tata Communications Transformation Services (TCTS), has been awarded the network administration, operations and maintenance contract of the cable supporting 1.28 Tbps of capacity.

State Bank of India has contracted to implement Anti Money Laundering (AML) software from 3i Infotech. The AMLOCK software is said to be implemented across the State Bank Group comprising of SBI and its 6 associate banks (State Bank of Patiala, State Bank of Bikaner & Jaipur, State Bank of Indore, State Bank of Hyderabad, State Bank of Mysore and State Bank of Travancore) having more than 16,000 branches across the country.

To see full report: MARKET RECAP 20-03-09

>Power Finance Corporation (RELIGARE SECURITIES)

● Strong traction in loan sanctions: In light of India’s rising energy deficit and inadequate T&D infrastructure, we expect large investments in the power sector during the 11th and 12th Five Year Plans. With more than 20 years of experience in lending to the power sector, Power Finance Corporation (PFC) is wellpositioned to leverage the growing financing opportunities. The company has witnessed strong traction in loan sanctions over the last few years and currently has outstanding sanctions of Rs 1.1tn. A large proportion of these will be disbursed over FY10-FY12 which provides strong growth visibility. We expect PFC to clock a 19% CAGR in loan disbursals over FY08-FY10 and consequently a 22% CAGR in its loan book to Rs 772bn by FY10.

● Margins to remain largely intact: In a rising interest rate scenario, PFC has benefited from re-pricing benefits on its loan assets (80% of which have a reset clause of three, five or ten years) and the fixed nature of its liabilities (90% fixed). With the recent decline in interest rate, PFC’s incremental spreads now stand at 3–4% which will help in maintaining spreads of ~2.3–2.4% for FY10. However, interest margins may come under pressure from FY11 onwards when loans disbursed in FY08 and FY09 will be due for re-pricing. Access to tax-free bonds, if allowed by the government, will help PFC to maintain its interest spreads. We are not factoring in this possibility at present.

● Robust asset quality: PFC’s asset quality has remained robust with net NPAs hovering at near-zero levels. Loans to state and central sector utilities comprise ~88% of the total loan book. Moreover, loan to utilities have an escrow mechanism in place which provides further comfort on the asset quality front. Significant T&D losses and lower realisations have weakened the financial
position of state utilities; however, losses have remained under control in the past few years and the subsidy burden as a percentage of state government revenues has declined significantly.

● Favourable tax ruling to act as catalyst: PFC is eligible for tax exemption up to 20% of the profit derived from the financing business. However, it is providing for tax on this deduction by creating a deferred tax liability due to objections from the auditors in FY05. This issue is under consideration with the ICAI; if the outcome proves favourable for PFC, the company’s tax rates for future years will be lower and its net worth will increase by ~Rs 13bn–14bn.

To see full report: PFC

>Market Insight (RELIGARE SECURITIES)

US markets closed in the positive but all other Asian markets are positive. Yesterday’s, IIP data was better-than-expected as predicted by us. IIP came in at -0.5% against an expectation of -0.9%
contraction. The situation in the US continues to remain serious and we believe that this year will be marked as a year of consolidation for our markets, but any sharp fall in the markets from current levels must be used as an opportunity to enter into the market from a long term view. For the day, we are positive on the market.

• Dow : Positive
• Asia: Positive
• Day’s view: Positive

To see full report: MARKET INSIGHT 13-03-09

>How Funds Fared (RELIGARE SECURITIES)

To see report: HFF 12 March'09

>Daily Market Insight (RELIGARE SECURITIES)

Dow closed marginally in the positive and all other Asian markets are mixed. Our IIP data is slated to come today and we believe that the number will not disappoint the market. Market expectation is - 0.9% contraction against -2% last month. Asian markets have rallied since last 2 days and we believe that our market could do some catching up today .Hence we expect a gap up opening for the market and expect market to rally for the day. We continue to believe that any sharp decline in the market should be used as an opportunity to build a long-term portfolio.

• Dow : Positive
• Asia: Mixed
• Day’s view: Positive

To see full report: Market Insight 12-03-09

>Market Perspective (RELIGARE)

Æ

What to expect in March 09.....

#S&P has downgraded the outlook for India in light of rising fiscal deficit (targeted at 5.5% for 2009-10)



#Lowering GDP growth rate, falling farm output and exports have caused medium term concerns regarding the Indian economic prospects.



#But India is targeted to grow at 5.1% in 2009, a rate much higher than most other emerging and developed nations.



#Expectations of further rate cuts by the RBI and the stimulus packages announced by the government to support the Indian economy.



#Inflation at a 15-month low, augurs well in the present scheme of things and provides headroom for additional rate cuts.



#Large cap equity funds to outperform the other MF categories as volatility persists in the uncertain market conditions .



#Banking, Oil & Gas, Metals and IT are attractively valued, presently trading at lower forward PEs. These sectors can be viewed as long term investment avenues. Investors looking for high growth prospects, based on earnings visibility, may take exposure to Banking and construction sectors which have received an EBIDTAupgrade as per the Religare Equity researchview.



To see full report: Market Perspective March'09

>Market Insight (RELIGARE)

MARKET INSIGHT

Dow closed in the negative and all other Asian markets are negative. Citigroup, once the world’s biggest bank in terms of value, traded below US$ 1. Also, Geithner said that the economy will worsen from current levels before any revival is seen. We continue to believe that the situation globally will become worse from current levels. However, we believe that at any sharp fall in our market must be used as an opportunity to invest from a long-term perspective, in fundamentally sound companies. For the day, we expect the market to open down and see the selling pressure continuing.

• Dow : Negative
• Asia: Negative
• Day’s view: Negative

To see full report: Market Insight 06-03-2009

>Market Insight (RELIGARE)

MARKET OUTLOOK

Dow closed in the negative but all Asian markets are positive. Our markets witnessed some sell-off yesterday in the latter part of the day on bad global cues. We continue to believe that the situation in the US remains serious and more downside to the markets from current levels cannot be ruled out. However, we believe that any downside form current levels should be used as an opportunity to build up a long-term portfolio. We expect some bounce back in the market today.

• Dow : Negative
• Asia: Positive
• Day’s view: Positive

To see full report: Market Outlook 04-03-2009

>Market Insight (RELIGARE)

MARKET OUTLOOK

Dow closed in the positive but Asian markets are mixed. Our quarterly GDP numbers are likely to come out tomorrow, which will play a crucial role in determining the short-term trend of the market. Market expectation for GDP growth is 6.1% against 7.6% last quarter. We believe that our market is in the consolidation phase, but the situation globally continues to remain bad. We therefore continue to remain bearish on the market. For the day, we expect market to open flat to positive and expect some profit booking at higher levels.

• Dow : Negative
• Asia: Mixed
• Day’s view: Negative

To see full report: Market Insight 26-02-2009

>Market Insight (Religare)

MARKET OUTLOOK

The Dow closed positive; all Asian markets are up as well. Yesterday, our market recovered from its losses as the government announced duty cuts worth Rs 300bn which are likely to be followed by an interest rate cut by the Central Bank. This is a positive step by the government just before going into election and will help fire up the economy. For the day we are positive on the market.

• Dow: Positive
• Asia: Positive
• Day’s view: Positive

To see full report: Market Insight 25-02-2009

>Weekly Market Recap (RELIGARE)

Indian Bourses remained turbulent this week mirroring weak
global sentiments. Disappointment from the interim general
budget for 2009-10 pulled the market sharply as there were no
sector specific benefits for the industry hit by the global economic
slowdown. The BSE Sensex registered a loss of 8.2% whereas the
Nifty registered a loss of 7.2%. The Foreign Institutional Investors
(FIIs) were net sellers to the tune of Rs. 1,349 crore and the
Mutual Funds were net sellers to the tune of Rs. 675 crore.
The annual wholesale price index (WPI) based inflation rate fell to
a 13 month low, dipping below the 4% mark mainly on account
of declining global crude oil prices. The year on year WPI inflation
rose to 3.92% for week ended February 7 down from the previous
week's annual rise of 4.39%.

To see full report: Weekly Market Review

>Market Insight (RELIGARE)

MARKET INSIGHT

The Dow closed flat; all Asian markets are flat as well. Our market has corrected significantly after the interim budget as expectations were unfulfilled. The situation in the US remains grim and the recession will continue to deepen. Today, we expect the market to open flat but some profit booking in the later part of the day is not ruled out.

• Dow: Positive
• Asia: Negative
• Day’s view: Negative

To see full report: Market Insight 19-02-2009

Top Buys (Religare)

TOP BUYS (FEBRUARY 2009)

• Cipla
• Dishman Pharmaceuticals
• Hindustan Zinc
• IVRCL Infrastructure
• Onmobile Global
• Orient Paper & Industries
• PSL
• Punjab National Bank
• Zee News

To see full report: TOP BUYS