Asian shares inched up on Tuesday as manufacturing data around the world highlighted the drag on growth from the protracted euro zone debt crisis, raising expectations for the Federal Reserve to take further steps to underpin the fragile economy. U.S. manufacturing contracted for the first time in nearly three years, while in the euro zone the jobless rate rose to a record high in May and a measure of factory activity held steady at its lowest level since June 2009.Asia was hit by crumbling orders from abroad.
Here are top 10 stocks to watch and trade today:
1) State Bank of India: SBI aims to raise at least $500 million through a five-year overseas bond sale as soon as this month, two sources with direct knowledge said, potentially reopening the dollar bond market for Indian issuers after a four-month lull. The street would watch the development closely as the largest state-owned bank needs capital infusion to maintain growth.
2) Hero MotoCorp: The June 2012 sales data was lower than street estimate. June sales stood at 5,34,000 vehicles, rising 4 per cent over last year. However, it was a 4 per cent fall over May 2012.
3) CESC: Although the retailing investment by the Kolkata-based utility company continues to report losses and is a big drag, analysts think the stock is fairly valued. Citi has put a buy with a target price of Rs 345. The current market price is Rs 298.
4) United Spirits: The market for liquor is considered an attractive one by the street. Yet, rising debt is a concern and the market is awaiting clarity on the Kingfisher Airlines situation. Despite a relatively low valuation, Nomura has put a neutral rating on United Spirits.
5) Zee Entertainment: There is a significant improvement in viewership rating that could push up advertising revenue. The digitization in 4 metros could bring a significant upside. UBS has put a buy on the stock with a price target of Rs 170. The current market price is Rs 149.
6) ACC: Cement companies reported an improvement in total sales for the month of June 2012. ACC saw sales rise to 1.96 million tonnes from 1.91 mt last year. Ambuja Cement also reported a gain at 1.79 mt from 1.67 mt in the year ago period.
7) Reliance Power: There is a buzz on the street that Ming Yang, a Chinese energy company could buy a stake in Reliance Capital-owned Global Wind Power. Reliance Power also has decided to co-develop clean energy projects in India.
8) Fortis Healthcare: The net debt on the books of the company stands at $ 1.3bn. The debt-equity ratio for 2011-12 is 2.1. There is a possibility of the company diluting equity in step down subsidiaries to inject cash, according to Anand Rathi Securities.
9) Reliance Industries: Nikko Resources, a partner of RIL in energy exploration blocks has cut estimates of gas output and discoveries in the Krishna-Godavari basin. Analysts estimate that this cut could be worth Rs 3 per share for Reliance Industries.
10) Jubilant Foodworks: Jubilant shares jumped 5 per cent on Monday. The stock could remain in the limelight due to a buzz in the market over a bonus issue of shares. The gain is despite a significantly high valuation of the stock.
