Analysts' take on stocks/sectors in news

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Indian stocks on Wednesday rose tracking strong global cues and short covering. The National Stock Exchange's 50-share Nifty closed up over 100 points to 4,931.

"We have entered a choppy trend," said Deven Choksey, Managing Director of KR Choksey Securities. "Today's pullback may not sustain in this week."

Choksey added that the next week would be the decided for the market course ahead and whether it would fall further. "Most funds that are eyeing the NTPC issue and have kept funds on sidelines would have invested it by that point of time and the balance cash would probably once again pumped into the market," he said. "So eight to 10 days before the budget, we should see a strong market again and the Nifty could scale closer to 5,200 levels."

Stock/sector view

Metals: "I would be comfortable with companies like Tata Steel and Sterlite Industries," Choksey said. "The business situation across the globe is improving. So base commodity prices for steel, copper and aluminium are going to remain firm. We believe these picks on the valuation front and also on a forward basis are the way to go."

Fertiliser: Choksey said he would stay away from fertiliser stocks as they were not long-term picks because of regulation even though gas was being available to them increasingly.

Fame-INOX deal: "The consolidation was expected and with this acquisition, Inox will become the number two player in this space," said Rajen Shah of Angel Broking. He, however, added there were other more compelling investments in the media space. "There's something like Sa Re Ga Ma, which is available at about Rs 100 crore of market cap and it owns almost 50% of the music produced in the past 50 years. Those are the ones, which would attract my attention because they could turn out to be multi baggers."

Infinite Computers: Those stock listed on Wednesday and surged over 20% but Shah said he would advise investors to book profit. "It's more than a fairly priced stock, which is quoting at 10 times forward earnings and you are getting some really good quality companies for 5 and 6 kind of PE multiples."

Infrastructure: "Jindal Saw is a company that we like," Shah said. "It has posted good results and going forward the kind of network which has been laid out for the transportation of gas, this is going to see good times for pipe manufacturing companies and Jindal Saw is likely to do exceptionally well."

Dislosure:

Analysts may have positions in stocks/sectors recommended.