Monthly Archives: January 2009

Markets goind ahead and Suzlon

Stock markets yesterday have crossed the key resistance levels of 3100.Every move from here would be a cautious move as there would be sellers at higher levels of 3150,3200 and 3250.

Fundamentally things are looking good with the inflation coming down sharply and interest rates falling down.Government has reduced the CRR ,repo and reverse repo.Banks are still not lending but this move forces banks to lend money as the interest rates of parking money with RBI is very less at 4%.

Things may not be looking good for the interest rate sensitive sectors right now,but this would be the time to invest in these sectors.With the rates falling the demand would slowly start coming back into these sectors.One can expect a very good returns of 50% in 3 to 6 month perspective.

Suzlon has sold 10% of its stake in hansen to finance its REPower acquisition.This is a positive move.As the debt to equity ratio of suzlon is around 1:1,more leverage would have been negative to Suzlon.This money is not sufficient for the acquistion but they are in a right direction.REPower acquisition is very important to Suzlon as REpower is the largest wind turbin maker in Germany,in the country which has highest wind energy production.RePower has excellent technology and brand name which would help Suzlon to build the confidence which it lost due to the broken blades.If Suzlon as planned completes its acuquisition of REPower on schedule there can be heavy buy in this stock which would move the stock easily to 90 to 120.