News Making Buzz(4th Sept 2010)

1. Govt is going to lift export duty on the Cotton exports from Oct1 for upto 55 Mn Bales of cotton.The cotton production has surpassed the cotton demand in the country and needs to be exported. There is a meeting on 15th Nov.(Expecting a jump in the Cotton industry stock prices.)
2. Steel Strips Wheels has got order for 4,000 wheels worth 45,000 Euro from German Company, quoting NewsWire 18, reports CNBC-TV18. It touched a 52-week high of Rs 263.70. At 10:58 hrs the share was quoting at Rs 256.50, up Rs 13.55, or 5.58%. Brokers have upped their target on the stock to 300.
3. Sugar industries have jumped quite higher on the news of decontrol.Now the confusion regarding it will force a correction to their prices.Simply put, Govt might not be ready to decontrol the most controlled and one of the most sensitive commodities as of now.
   
4. Delhi based low-cost airline SpiceJet has been given in-principle approval by a Government committee to import 30 Boeing 737-800 aircraft. In July, the airline had signed an agreement with Boeing to purchase the 30 aircraft at an estimated value of $2.7 billion.(CMP 72.6,-0.05,-0.07%)
5. Asahi India Glass set to expand, investing 140 Cr. Expansion maily to occur in the automotive sector. (CMP 92.55,+1.45,+1.59%). But it has a very high PE (1197.30) and very low EPS(0.08). Can be traded for a 1-2 days next week.Not a long term investment.Very volatile.
6. Hindalco Industries, an Aditya Birla group company, has drawn up a capital expenditure plan of Rs 10,000 crore this fiscal, going up to Rs 11,000 crore in 2011-12.
   The company will also pump in about Rs 40,000 crore over the next four years in various greenfield and brownfield expansions.the company's greenfield projects – Utkal Alumina, Mahan Aluminium, Aditya Alumina and Jharkhand Aluminium – were on course and had made significant progress.
   Hindalco's promoters are exploring the option of increasing their holding over the present 32 per cent level which will put them ahead of foreign institutional investors who account for 29 per cent. Banks and domestic institutions have a 13 per cent stake.
   Utkal Alumina has been granted the permission to expand in orissa.After the expansion it can surpass Vedanta Aluminium.
   So Hindalco is a sure buy for Monday and for the next few days.(CMP 170.45, -1.84%)