Oil Marketing Companies

Price Hike!! Price Hike!! Price Hike!!

No decision yet taken by the government readying itself for upcoming elections. These companies have already taken huge losses.

We have seen strength in these companies last 1-2 weeks in hope of price hike.

I wonder how much these companies can gain given the fact that hike will only reduce their losses but not make them profitable. Gods knowns what will happen to already incurred loss.

Oils bonds are helping them partially but thats a sad story for common man because these bonds are just postponing the disaster.

Banking Space

Banking stocks are coming under hammer for quite a few days.

Sbi and ICICI are touching new lows everyday. With inflation soaring high and oil price on the anvil its a difficult phase for them.

With liquidity crunch, high interest rate , low credit offtake coupled with slowing economy banks are facing moderation in their earnings.

We have to wait and watch , and enter the stock at right time.

Larsen & Toubro

L&T gave the robust fourth quarter results with net up 38%. It has also announced a bonus of 1:1 . This is the second one in 2 years.

It has moved up sharply for last 2 days. Hope it helps in reviving the sentiments in the capital goods space.

Apart from the diverse operations, it is now eyeing JV with Indian Railways.

Last month it hived off RMC business stating it as non - core and made a cool profit.

Mark to Market loss is partially recovered and hope to square off soon.