Hits and misses: Oil cos, Tata Steel and Mahindra & Mahindra
Shares of Indian Oil, Bharat Petroleum and Hindustan Petroleum fell as the government postponed the decision to hike petrol prices.
By ET Bureau | Updated:
OIL MARKETING COS
Shares of three oil marketing companies - Indian Oil, Bharat Petroleum and Hindustan Petroleum fell as the government postponed the decision to hike petrol prices. Oil marketing companies wanted to increase the petrol price at least by 2 per liter due to the sustained depreciation in the rupee.
TATA STEEL
Shares of Tata Steel jumped 6.06% to 361.20, the second biggest single-day gain in the past 15 months, after Credit Suisse upgraded its ratings to 'neutral' from 'underperform' citing valuation comfort at current levels. Fear of a sharper slowdown in Europe/China prevents us from recommending a buy, the brokerage said.
FY13 should be an eventful year for Tata -its domestic expansion is now just one quarter away, iron ore/coal output from its Canadian/Mozambique mines should also start, and its EU business should release working capital. These can materially change its cash-generation potential, said Credit Suisse.
MAHINDRA & MAHINDRA
M&M shares fell 1.1% to 666.50 in a firm market on Tuesday after Bank of America Merrill Lynch downgraded its rating on the stock to 'underperform' from 'neutral' and cut its price target by 21% 645. The brokerage expects core business volumes to disappoint and profit to decelerate sharply, leading to street downgrades. It expects tractor demand to be flat over the next two years.
Shares of three oil marketing companies - Indian Oil, Bharat Petroleum and Hindustan Petroleum fell as the government postponed the decision to hike petrol prices. Oil marketing companies wanted to increase the petrol price at least by 2 per liter due to the sustained depreciation in the rupee.
TATA STEEL
Shares of Tata Steel jumped 6.06% to 361.20, the second biggest single-day gain in the past 15 months, after Credit Suisse upgraded its ratings to 'neutral' from 'underperform' citing valuation comfort at current levels. Fear of a sharper slowdown in Europe/China prevents us from recommending a buy, the brokerage said.
FY13 should be an eventful year for Tata -its domestic expansion is now just one quarter away, iron ore/coal output from its Canadian/Mozambique mines should also start, and its EU business should release working capital. These can materially change its cash-generation potential, said Credit Suisse.
MAHINDRA & MAHINDRA
M&M shares fell 1.1% to 666.50 in a firm market on Tuesday after Bank of America Merrill Lynch downgraded its rating on the stock to 'underperform' from 'neutral' and cut its price target by 21% 645. The brokerage expects core business volumes to disappoint and profit to decelerate sharply, leading to street downgrades. It expects tractor demand to be flat over the next two years.
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