sharekhan ValueGuide: Volatility gets an extension

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FROM SHAREKHAN'S DESK Volatility gets an extension It has been a sombre beginning for this equity market this year. The benchmark index registered a double-digit decline over the past one month even as the equities markets rallied globally. In the year to date India is the second worst performing market globally with Egypt being the worst. Our market dropped on macro-economic concerns of persistently high inflation, hardening of interest rates and an unexpected sharp slowdown in the industrial production. Even though corporate earnings for Q3FY2011 were largely in line with expectations, the market witnessed earnings downgrades in several companies across sectors on account of concerns related to margin pressure from the rising raw material cost and spiraling energy prices. The eruption of social unrest in Egypt and some other countries in the neighbouring region towards the end of the month added to the market?s woes. Given the global concerns and certain India-specific issues, the foreign institutional investor (FII) flows reversed with the foreign investors withdrawing close to one billion dollars in January 2011 alone. SHAREKHAN TOP PICKS Sharekhan top picks STOCK IDEA NIIT Technologies: Creating its own differentiated strategy STOCK UPDATE Ashok Leyland: Price target revised to Rs84 Bajaj Holdings & Investment: Price target revised to Rs1,042 Bank of Baroda: Price target revised to Rs998 Bharat Heavy Electricals: Price target revised to Rs2,781 Cadila Healthcare: Strong results; in line with estimates Corporation Bank: Price target revised to Rs735 Eros International Media: Stellar performance Greaves Cotton: Full throttle to continue HCL Technologies: Price target upgraded to Rs622 Hindustan Unilever: Price target revised to Rs246 Housing Development Finance Corporation: Higher treasury income drives PAT growth ICICI Bank: Price target revised to Rs1,190 Infosys Technologies: Upgraded to Buy Ipca Laboratories: Improvement in operating margins?key monitorable IRB Infrastructure Developers: Price target revised to Rs285 ITC: Price target revised to Rs207 JB Chemicals & Pharmaceuticals: RoW to drive growth Kewal Kiran Clothing: Robust performance?led by volume and realisation Larsen & Toubro: Upgraded to Buy Marico: Price target revised to Rs140 Orient Paper and Industries: Upgraded to Buy Polaris Software Lab: Intellect going strong, margins concerns remains? Punjab National Bank: Price target revised to Rs1,460 Reliance Industries: Q3 performance meets estimates State Bank of India: Price target revised to Rs2,990 Tata Consultancy Services: Impressive margin performance Thermax: Upgraded to Buy on correction Torrent Pharmaceuticals: Q3 results in line with estimates UltraTech: Cement Results ahead of estimates United Phosphorus: Price target revised to Rs218 V-Guard Industries: Price target revised to Rs237 Yes Bank: Result in line with expectations THE STOCK IDEAS REPORT CARD SHAREKHAN SPECIAL Monthly economy review MUTUAL GAINS Sharekhan?s top equity fund picks SECTOR UPDATE Non-banking Financial Company: Regulation to limit profitability in MFI sector VIEWPOINT Exide Industries: Short circuit Shopper's Stop: Strong performance; but priced in Earnings Guide

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