Bharat Forge

Bharat Forge (BFRG) is the second largest forging company in the world .Its installed capacity nearly 130,000 tonnes in FY05. It is the largest exporter of auto components from India and leading chassis component manufacturer in the world (Source: Company). Bharat Forge manufactures a wide range of critical components for passenger cars, commercial vehicles and diesel engines. On the domestic front, the company's list of clients include Tata Motors, Ashok Leyland, Eicher, M&M, Toyota and Maruti Udyog. On the international front, the client list consists of Volvo, Caterpillar, Toyota, Renault and Daimler Chrysler, to name a few. In the last two years, the company has expanded its presence geographically through acquisitions (in FY04, it acquired two German companies and in 1QFY06, Federal Forge of US was acquired). With CDP and Aluminiumtechnik in its kitty, it has gained a strong foothold in Europe. Auto sector is in a positive mood which makes BF also looks good.

It has a strong support at the 400 level and moved up very fast(CMP-470).So investors who have already bought the stock can hold the stock.(In my earlier post I suggested the stock).For others who want to invest for long term can buy the stock at 440-445 level.Another news coming is that company was close to acquiring ThyssenKrupp AG's forging units in the U.S and Europe for more than $1.5bn.India's largest forging manufacturer could tie up with a private equity fund for financing the takeover, which according to the pink daily was likely to be announced next week.Anyway the trend is positive.

Stocks for a week

RBI now allows FIIs to pick voltas stake up to 30%.FIIs can now purchase under Portfolio Investment Scheme (PIS) equity shares and convertible debentures of Voltas Ltd through primary markets and stock exchanges in India upto 30 per cent of their paid up capital.This may see some positive movements in voltas.

The result of MTNL BSNL merging will be finalised on march end.This will be positive for MTNL and also there is a news that bsnl and MTNL is going to share cell sites .At first it will be on Delhi and then to all over India see this

Banking sector also can see some positive trend on the coming week.The heavies like SBI,ICICI will gain but I prefer SBI to ICICI bank.Other banking stocks like UTI bank,BOB,can also gain some %.Investors holding SBI at present should keep it as stock will climb to new highs in near future.Dealers said other factors, including the proposed stock split in SBI, a follow-on issue in July and a reduction in the face value of the associate banks also meant that these counters attracted strong buying.

Saregama will also see some action in accordance with the results.

Good luck