Weak Rupee – Buy IT – Lehman Brothers

Lehman Brothers has been at the fore-front in covering the Indian IT Stocks. They were the first one to downgrade last October and subsequently after the blood bath upgraded tier-I Indian IT stocks. Just a while ago they have reiterated a BUY on Infosys, Wipro and TCS due to the weakness in rupee which is probably going to last longer than expected.

Infosys Technologies:
Lehman Brothers’ economics team expects the FY09E US$-INR average exchange rate to be 41.2 (3% depreciation from the average rate in FY08), against the earlier forecast of 39.4. (more…)

Are FIIs Fleeing India ?

Your eyes must be Red and BP shooting high the moment you read, FIIs are fleeing India. Chill, to save their siblings in the US [American Subsidiaries], they booked huge profits and thus their holding in BSE-500 has dropped from 20% to 17.8% at the end of March-08. Promoter share of the BSE500 picked up ~2.9%, rising to 58.2% in the quarter – the highest level in 32 quarters, suggesting continued promoter confidence even in a weakening market. (more…)

Fertile gains for fertiliser shares on higher subsidy

The substantially higher subsidy bill is a part of the strategy of the government to safeguard farmers from sharp price spiral for both raw materials and finished fertilisers in the global market.

Fertiliser shares had risen in a weak market yesterday, 27 May 2008, when the news of higher subsidy hit the market during trading hours. On that day, Nagarjuna Fertilisers and Chemicals rose 2.36% to Rs 45.55, Rashtriya Chemicals and Fertilisers gained 1.04% to Rs 67.90, and Chambal Fertilisers and Chemicals jumped 6.85% to Rs 76.40

Meanwhile, the government’s new fertiliser investment policy is likely to be finalised in the next two to three weeks. The new policy will aim at linking production cost of new fertiliser units to the international prices, in order to encourage fresh investments in the sector.