DAY TRADERS CAN CONSIDER TO SELL THIS STOCK AROUND 712.00 WITH THE
STOPLOSS AT RS 726..TARGET LOOKS 695/690/685..
Disclaimer: These Recommendations are based on technical analysis and Personal observations. Due care has been taken while preparing these comments, no responsibility will be assumed by the author for the consequences what so ever, resulting out of acting on these recommendations.
BE A PART OF OVER 300 HNI SUBSCRIBERS FROM ALL OVER THE WORLD.
Friday, April 30, 2010
MARKET SEEN HEADING NORTH ON POSITIVE GOLBAL CUES
The market is expected to open on a firm note on positive global cues. Besides, the passing of the Finance Bill 2010 in the Lok Sabha on Thursday with some minor changes in tax proposals may boost sentiment as the government has pledged to cut the fiscal deficit. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicate that the Nifty could rise 26.50 points at the opening bell. Auto, cement, steel stocks will be in focus ahead of the release of April 2010 monthly sales data next week.
Finance Minister Pranab Mukherjee's budget 2010-11 proposals were passed on Thursday, 29 April 2010 with minor changes. The concessions will reduce the incidence of service tax on housing and air travel, incentivise construction of big hospitals, keep cancer and anti-AIDs drugs cheap and provide relief to debt-ridden coffee growers. However, the government held firm not to roll back the hike in prices of petrol and diesel. With the passage of the Bill by the Lok Sabha, the three-stage budgetary process stands completed.
Adani Power, Allahabad Bank, Amtek Auto, Bharat Electronics, Finolex Cables, Gateway Distriparks, HCL Infosystems, IDBI bank, IFCI, India Cements, Reliance Capital, Tech Mahindra, Titan Industries and Vijaya Bank will announce their January-March 2010 quarter earnings today, 30 April 2010.
Asian markets rose for the first time in four days as improving company earnings boosted speculation the global economy will sustain its recovery. Key benchmark indices in China, Hong Kong, Taiwan, Japan, South Korea, Singapore and Indonesia were up by between 0.40% to 1.09%.
US markets surged on Thursday, 29 April 2010, on waning fears over the euro zone debt crisis. The Dow Jones Industrial Average rose 122.05 points or 1.10% to 11,167.32. The Nasdaq composite gained 40.19 points or 1.63% to 2,511.92 and the Standard & Poor's 500 index was up 15.42 points or 1.29% to 1,206.78.
Back home, food price index rose 16.61% in the year to 17 April 2010, data released by the government on Thursday, 29 April 2010 showed. The rise in food prices inflation was slower than an annual rise of 17.65% in the previous week. But, fuel price inflation quickened. The fuel price index rose 12.69% in the year to 17 April 2010 a year ago, faster than the previous week's 12.45% rise. The primary articles index was up 13.55% in the year to 17 April 2010.
The Q4 March 2010 corporate earnings announced so far have been good. The combined net profit of a total of 586 companies rose 29.50% to Rs 31831 crore on 35% rise in sales to Rs 280051 crore in the quarter ended March 2010 over the quarter ended March 2009.
The government on Thursday, 29 April 2010, kicked off its disinvestment programme for the fiscal year March 2011 with the initial public offering (IPO) of the state-run SJVN. The government plans to raise Rs 1000 crore through the IPO, and is offloading 10% of its stake in the company. The IPO was subscribed 43% on day one.
The Congress-led United Progressive Alliance government sailed through a trial of strength in parliament on Tuesday, 27 April 2010, by winning the cut motion demanded by opposition parties against an unpopular hike in fuel and fertiliser prices with smaller parties giving it a leg up to achieve a surprisingly strong victory. However, major reforms may take a backseat for the some time to come as there is a stiff resistance by the opposition on fears it may hurt the poor.
On the macro front, the latest data showed infrastructure sector output jumped 7.2% in March 2010 from a year earlier, higher than an upwardly revised rise of 4.7% in February 2010.
The Indian Meteorological department (IMD) expects normal rainfall in the June-September monsoon season this year. Rainfall is likely to be 98% of the long-term average, the IMD said on 23 April 2010. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season holds key.
The Reserve Bank of India expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand.
The RBI at its annual policy review, last week, said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted. A 25 basis points hike in the cash reserve ratio (CRR) with effective from 24 April 2010 will suck out excess liquidity of Rs 12500 crore from the banking system.
In its half-yearly World Economic Outlook, the International Monetary Fund (IMF) has pegged India's GDP growth at 8.75% in calendar 2010 and 8.5% in calendar 2011. According to the IMF, domestic demand in India will strengthen as the labour market improves, and investment is expected to be boosted by strong corporate profitability, rising business confidence and favourable financing conditions.
The key benchmark indices rebounded after a two-day slide on Thursday, 29 April 2010, tracking gains in European stocks and higher US index futures. The BSE 30-share Sensex rose 123.39 points or 0.71% to 17,503.47 and the S&P CNX Nifty gained 38.70 points or 0.74% to 5254.15.
As per provisional figures on NSE, foreign funds bought shares worth Rs 90.44 crore and domestic funds bought shares worth Rs 266.76 crore on Thursday, 29 April 2010.
Finance Minister Pranab Mukherjee's budget 2010-11 proposals were passed on Thursday, 29 April 2010 with minor changes. The concessions will reduce the incidence of service tax on housing and air travel, incentivise construction of big hospitals, keep cancer and anti-AIDs drugs cheap and provide relief to debt-ridden coffee growers. However, the government held firm not to roll back the hike in prices of petrol and diesel. With the passage of the Bill by the Lok Sabha, the three-stage budgetary process stands completed.
Adani Power, Allahabad Bank, Amtek Auto, Bharat Electronics, Finolex Cables, Gateway Distriparks, HCL Infosystems, IDBI bank, IFCI, India Cements, Reliance Capital, Tech Mahindra, Titan Industries and Vijaya Bank will announce their January-March 2010 quarter earnings today, 30 April 2010.
Asian markets rose for the first time in four days as improving company earnings boosted speculation the global economy will sustain its recovery. Key benchmark indices in China, Hong Kong, Taiwan, Japan, South Korea, Singapore and Indonesia were up by between 0.40% to 1.09%.
US markets surged on Thursday, 29 April 2010, on waning fears over the euro zone debt crisis. The Dow Jones Industrial Average rose 122.05 points or 1.10% to 11,167.32. The Nasdaq composite gained 40.19 points or 1.63% to 2,511.92 and the Standard & Poor's 500 index was up 15.42 points or 1.29% to 1,206.78.
Back home, food price index rose 16.61% in the year to 17 April 2010, data released by the government on Thursday, 29 April 2010 showed. The rise in food prices inflation was slower than an annual rise of 17.65% in the previous week. But, fuel price inflation quickened. The fuel price index rose 12.69% in the year to 17 April 2010 a year ago, faster than the previous week's 12.45% rise. The primary articles index was up 13.55% in the year to 17 April 2010.
The Q4 March 2010 corporate earnings announced so far have been good. The combined net profit of a total of 586 companies rose 29.50% to Rs 31831 crore on 35% rise in sales to Rs 280051 crore in the quarter ended March 2010 over the quarter ended March 2009.
The government on Thursday, 29 April 2010, kicked off its disinvestment programme for the fiscal year March 2011 with the initial public offering (IPO) of the state-run SJVN. The government plans to raise Rs 1000 crore through the IPO, and is offloading 10% of its stake in the company. The IPO was subscribed 43% on day one.
The Congress-led United Progressive Alliance government sailed through a trial of strength in parliament on Tuesday, 27 April 2010, by winning the cut motion demanded by opposition parties against an unpopular hike in fuel and fertiliser prices with smaller parties giving it a leg up to achieve a surprisingly strong victory. However, major reforms may take a backseat for the some time to come as there is a stiff resistance by the opposition on fears it may hurt the poor.
On the macro front, the latest data showed infrastructure sector output jumped 7.2% in March 2010 from a year earlier, higher than an upwardly revised rise of 4.7% in February 2010.
The Indian Meteorological department (IMD) expects normal rainfall in the June-September monsoon season this year. Rainfall is likely to be 98% of the long-term average, the IMD said on 23 April 2010. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season holds key.
The Reserve Bank of India expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand.
The RBI at its annual policy review, last week, said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted. A 25 basis points hike in the cash reserve ratio (CRR) with effective from 24 April 2010 will suck out excess liquidity of Rs 12500 crore from the banking system.
In its half-yearly World Economic Outlook, the International Monetary Fund (IMF) has pegged India's GDP growth at 8.75% in calendar 2010 and 8.5% in calendar 2011. According to the IMF, domestic demand in India will strengthen as the labour market improves, and investment is expected to be boosted by strong corporate profitability, rising business confidence and favourable financing conditions.
The key benchmark indices rebounded after a two-day slide on Thursday, 29 April 2010, tracking gains in European stocks and higher US index futures. The BSE 30-share Sensex rose 123.39 points or 0.71% to 17,503.47 and the S&P CNX Nifty gained 38.70 points or 0.74% to 5254.15.
As per provisional figures on NSE, foreign funds bought shares worth Rs 90.44 crore and domestic funds bought shares worth Rs 266.76 crore on Thursday, 29 April 2010.
CRUDE SHOOTS UP
Strong economic data and weak dollar pull up crude
Crude oil ended higher at Nymex on Thursday, 29 April 2010. Chances of a sooner and larger than expected rescue package for Greece and strong economic data on the US front pushed up crude prices higher.
On Thursday, crude-oil futures for light sweet crude for June delivery closed at $85.17/barrel (higher by $1.95 or 2.3%). Last week, crude ended higher by 0.5%. For the month of March, crude rose 5.1%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 6.2%.
Prices are still very much lower as compared to 3 July, 2008 settlement of $145.29 a barrel and an intraday high of $147.27 on 11 July, 2008, an all-time high. However, oil has also gained nearly 153% from a December 2008 nadir. That day prices settled at $33.87 a barrel following an intraday low of $32.40.
The Labor Department in US reported on Thursday, 29 April 2010 that the number of people filing initial claims for unemployment benefits declined by 11,000 in the week ended 24 April to a seasonally adjusted 448,000. Claims are down about 28% from the prior year. The new claims level matched expectations.
The four-week average of new claims, considered a better gauge of underlying trends than the volatile weekly number, rose 1,500 to stand at 462,500.
The report also revised that the number of people collecting regular state benefits dropped 18,000 to a seasonally adjusted 4.65 million in the week ended 17 April. The four-week average of continuing claims fell 9,000 to 4.64 million, the lowest level since January 2009.
In the currency market on Thursday, the dollar index, which measures the strength of the dollar against basket of six other currencies fell by 0.4%. The euro rebounded against the dollar today. Concerns over spreading contagion to other European countries lessened somewhat on reports that officials were considering a multi-year rescue package for Greece that could total more than 100 billion euros ($133 billion), compared to prior plans for a one-year aid package of roughly 45 billion euros.
Yesterday, in the latest weekly inventory report, the Energy Department reported an increase of 1.96 million barrels in the U.S. oil inventories in the week ended 23 April. Market had expected a rise of 1.4 million barrels. Refineries ran at 89% of their capacity, higher than expected. Crude stocks in Cushing, Okla., the delivery point for New York Mercantile Exchange oil, increased by nearly half a million barrels.
The report also showed that gasoline stocks declined by 1.24 million barrels; against an expected build of 500,000 barrels. Stocks of distillates, which include heating oil and diesel, were up by 2.93 million barrels when the expectation was of an increase of 1.2 million barrels.
On Thursday, natural-gas futures dropped as the Energy Information Administration reported a larger-than-expected increase for natural gas in storage last week. The EIA reported an increase of 83 billion cubic feet in the week ended 23 April, whereas market expected 70 to 76 billion cubic feet. Later Thursday, the EIA said production of natural gas in February rose 1.6% from January's output, which it revised lower. Natural gas for June delivery, the most active contract, declined 37 cents, or 8.5%, to settle at $3.98 per million British thermal units.
Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for May delivery closed higher by Rs 86 (2.3%) at Rs 3,784/barrel. Natural gas for May delivery closed at Rs 178.7, lower by Rs 17.7 (8.1%).
Crude oil ended higher at Nymex on Thursday, 29 April 2010. Chances of a sooner and larger than expected rescue package for Greece and strong economic data on the US front pushed up crude prices higher.
On Thursday, crude-oil futures for light sweet crude for June delivery closed at $85.17/barrel (higher by $1.95 or 2.3%). Last week, crude ended higher by 0.5%. For the month of March, crude rose 5.1%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 6.2%.
Prices are still very much lower as compared to 3 July, 2008 settlement of $145.29 a barrel and an intraday high of $147.27 on 11 July, 2008, an all-time high. However, oil has also gained nearly 153% from a December 2008 nadir. That day prices settled at $33.87 a barrel following an intraday low of $32.40.
The Labor Department in US reported on Thursday, 29 April 2010 that the number of people filing initial claims for unemployment benefits declined by 11,000 in the week ended 24 April to a seasonally adjusted 448,000. Claims are down about 28% from the prior year. The new claims level matched expectations.
The four-week average of new claims, considered a better gauge of underlying trends than the volatile weekly number, rose 1,500 to stand at 462,500.
The report also revised that the number of people collecting regular state benefits dropped 18,000 to a seasonally adjusted 4.65 million in the week ended 17 April. The four-week average of continuing claims fell 9,000 to 4.64 million, the lowest level since January 2009.
In the currency market on Thursday, the dollar index, which measures the strength of the dollar against basket of six other currencies fell by 0.4%. The euro rebounded against the dollar today. Concerns over spreading contagion to other European countries lessened somewhat on reports that officials were considering a multi-year rescue package for Greece that could total more than 100 billion euros ($133 billion), compared to prior plans for a one-year aid package of roughly 45 billion euros.
Yesterday, in the latest weekly inventory report, the Energy Department reported an increase of 1.96 million barrels in the U.S. oil inventories in the week ended 23 April. Market had expected a rise of 1.4 million barrels. Refineries ran at 89% of their capacity, higher than expected. Crude stocks in Cushing, Okla., the delivery point for New York Mercantile Exchange oil, increased by nearly half a million barrels.
The report also showed that gasoline stocks declined by 1.24 million barrels; against an expected build of 500,000 barrels. Stocks of distillates, which include heating oil and diesel, were up by 2.93 million barrels when the expectation was of an increase of 1.2 million barrels.
On Thursday, natural-gas futures dropped as the Energy Information Administration reported a larger-than-expected increase for natural gas in storage last week. The EIA reported an increase of 83 billion cubic feet in the week ended 23 April, whereas market expected 70 to 76 billion cubic feet. Later Thursday, the EIA said production of natural gas in February rose 1.6% from January's output, which it revised lower. Natural gas for June delivery, the most active contract, declined 37 cents, or 8.5%, to settle at $3.98 per million British thermal units.
Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for May delivery closed higher by Rs 86 (2.3%) at Rs 3,784/barrel. Natural gas for May delivery closed at Rs 178.7, lower by Rs 17.7 (8.1%).
DAILY NEWS ROUNDUP -APRIL 30, 2010
RIL plans to sell gas to retail consumers in the US, using Atlas Energy’s infrastructure
UltraTech Cement has acquired Dubai-based ETA Star Cement for an enterprise value of Rs17bn. (ET)
Jindal Steel and Power is close to acquiring Oman based Shabed Iron and Steel for US$500mn. (ET)
Supreme Court verdict on RIL-RNRL gas issue is likely next week. (ET)
Air India has opposed the marketing alliance between Kingfisher Airlines and British Airways on domestic network. (ET)
NTPC-BHEL Power Projects, 50:50 JV between the two PSU’s, is expecting orders worth Rs70bn by the end of current fiscal (ET)
Infinite Computer Solutions has bagged an order worth Rs1.25bn. (BL)
Madhucon Projects has secured an EPC contract worth Rs12bn for setting up thermal power plant in Nellore district of Andhra Pradesh. (BL)
CESC has decided to revive West Bengal’s Balagarh thermal power project abandoned several years ago. (BL)
Pantaloon Retail and Future Value Retail plan to issue Rs7.5bn worth of NCD’s. (BS)
Mindtree has bagged the application development services segment of the UID Project. (BS)
Tata Power has been asked not to apply differential pricing for Reliance Infrastructure. (BS)
Nuclear Power Corporation of India is likely to sign JV Agreements with IOC and NALCO. (FE)
Finance Bill proposes to prohibit token concessions to housing, air travel, planters and healthcare. (ET)
Food inflation eases to 16.6% during the weekend April 17. (BL)
Government has directed mobile operators to stick to June 30 dead line for launch of mobile number portability. (ET)
According to the Telecom minister, 3G auction to end in a day or two. (BL)
The Government has hiked export duty on iron ore lumps to 15%. (BS)
UltraTech Cement has acquired Dubai-based ETA Star Cement for an enterprise value of Rs17bn. (ET)
Jindal Steel and Power is close to acquiring Oman based Shabed Iron and Steel for US$500mn. (ET)
Supreme Court verdict on RIL-RNRL gas issue is likely next week. (ET)
Air India has opposed the marketing alliance between Kingfisher Airlines and British Airways on domestic network. (ET)
NTPC-BHEL Power Projects, 50:50 JV between the two PSU’s, is expecting orders worth Rs70bn by the end of current fiscal (ET)
Infinite Computer Solutions has bagged an order worth Rs1.25bn. (BL)
Madhucon Projects has secured an EPC contract worth Rs12bn for setting up thermal power plant in Nellore district of Andhra Pradesh. (BL)
CESC has decided to revive West Bengal’s Balagarh thermal power project abandoned several years ago. (BL)
Pantaloon Retail and Future Value Retail plan to issue Rs7.5bn worth of NCD’s. (BS)
Mindtree has bagged the application development services segment of the UID Project. (BS)
Tata Power has been asked not to apply differential pricing for Reliance Infrastructure. (BS)
Nuclear Power Corporation of India is likely to sign JV Agreements with IOC and NALCO. (FE)
Finance Bill proposes to prohibit token concessions to housing, air travel, planters and healthcare. (ET)
Food inflation eases to 16.6% during the weekend April 17. (BL)
Government has directed mobile operators to stick to June 30 dead line for launch of mobile number portability. (ET)
According to the Telecom minister, 3G auction to end in a day or two. (BL)
The Government has hiked export duty on iron ore lumps to 15%. (BS)
Thursday, April 29, 2010
APRIL 2010 DERIVATIVES EXPIRY MAY KEEP MARKET VOLATILE;INFLATION DATA EYED
The market is likely to see a flat-to-positive start after US stocks ended higher on Wednesday, 28 April 2010. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicate that the Nifty could rise 10.50 points at the opening bell. Stocks may exhibit high volatility during the day as traders roll over positions in the derivatives segment from the April 2010 series to the May 2010 series ahead of the expiry of the near-month April 2010 contracts today, 29 April 2010.
The government will unveil data on some wholesale price indices for the year through 10 April 2010 viz. the food price index, the primary articles index and the fuel price index at about 12:00 IST today, 29 April 2010.
The Q4 March 2010 corporate earnings announced so far have been good. The combined net profit of a total of 441 companies rose 28.70% to Rs 29125 crore on 36.40% rise in sales to Rs 249959 crore in the quarter ended March 2010 over the quarter ended March 2009.
Asian stocks were trading mixed. The market sentiment was cautious as investors remained concerned about sovereign-debt troubles in Europe. The key benchmark indices in Hong Kong, Japan, South Korea, Taiwan and Indonesia were down by between 0.04% to 2.57%. But, the key benchmark indices in China and Singapore rose 0.28% to 0.51%
US markets edged higher in volatile trade on Wednesday, 28 April 2010, after the US Federal Reserve hinted to signs of strength in the economy, giving some relief to investors worried about possible debt defaults in Europe. Earlier, stocks had declined after the rating firm Standard & Poor's downgraded its debt rating on Spain, a day after its downgrades on Greece and Portugal.
The Dow Jones Industrial Average gained 53.28 points, or 0.48%, to 11,045.27. The Standard & Poor's 500 Index rose 7.65 points, or 0.65%, to 1,191.36 and the Nasdaq Composite index added 0.26 points, or 0.01%, to 2,471.73.
The US Federal Reserve after a two-day policy meeting that concluded on Wednesday, 28 April 2010 left interest rates unchanged. The Fed offered a more upbeat view of the US economy and employment prospects. The Fed retained its pledge to keep interest rates low for an extended period because of low inflation and high unemployment. The Fed has kept interest rates near zero since December 2008.
Back home, the Congress-led United Progressive Alliance government sailed through a trial of strength in parliament on Tuesday by winning the cut motion demanded by opposition parties against an unpopular hike in fuel and fertiliser prices with smaller parties giving it a leg up to achieve a surprisingly strong victory. Prime Minister Manmohan Singh's government was backed by 289 MPs in the 545-strong Lok Sabha, while the opposition managed 201 votes. Two parties walked out on the vote, adding to abstentions. However, major reforms may take a backseat for the some time to come as there is a stiff resistance by the opposition on fears it may hurt the poor.
On the macro front, the latest data showed infrastructure sector output jumped 7.2% in March 2010 from a year earlier, higher than an upwardly revised rise of 4.7% in February 2010.
The Indian Meteorological department (IMD) expects normal rainfall in the June-September monsoon season this year. Rainfall is likely to be 98% of the long-term average, the IMD said on 23 April 2010. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season holds key.
The Reserve Bank of India expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand.
In its half-yearly World Economic Outlook, the International Monetary Fund (IMF) has pegged India's GDP growth at 8.75% in calendar 2010 and 8.5% in calendar 2011. According to the IMF, domestic demand in India will strengthen as the labour market improves, and investment is expected to be boosted by strong corporate profitability, rising business confidence and favourable financing conditions.
The RBI said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted. A 25 basis points hike in the cash reserve ratio (CRR) with effective from 24 April 2010 will suck out excess liquidity of Rs 12500 crore from the banking system.
The key benchmark extended losses for the second straight day on Wednesday, 28 April 2010 as world stocks reeled from rating downgrades on Greece and Portugal. The BSE 30-share Sensex fell 310.54 points or 1.76% to 17380.08 and The S&P CNX Nifty declined 92.90 points or 1.75% at 5,215.45.
As per provisional figures on NSE, foreign funds sold shares worth Rs 131.13 crore and domestic funds bought shares worth Rs 324.10 crore on Wednesday, 28 April 2010.
The government will unveil data on some wholesale price indices for the year through 10 April 2010 viz. the food price index, the primary articles index and the fuel price index at about 12:00 IST today, 29 April 2010.
The Q4 March 2010 corporate earnings announced so far have been good. The combined net profit of a total of 441 companies rose 28.70% to Rs 29125 crore on 36.40% rise in sales to Rs 249959 crore in the quarter ended March 2010 over the quarter ended March 2009.
Asian stocks were trading mixed. The market sentiment was cautious as investors remained concerned about sovereign-debt troubles in Europe. The key benchmark indices in Hong Kong, Japan, South Korea, Taiwan and Indonesia were down by between 0.04% to 2.57%. But, the key benchmark indices in China and Singapore rose 0.28% to 0.51%
US markets edged higher in volatile trade on Wednesday, 28 April 2010, after the US Federal Reserve hinted to signs of strength in the economy, giving some relief to investors worried about possible debt defaults in Europe. Earlier, stocks had declined after the rating firm Standard & Poor's downgraded its debt rating on Spain, a day after its downgrades on Greece and Portugal.
The Dow Jones Industrial Average gained 53.28 points, or 0.48%, to 11,045.27. The Standard & Poor's 500 Index rose 7.65 points, or 0.65%, to 1,191.36 and the Nasdaq Composite index added 0.26 points, or 0.01%, to 2,471.73.
The US Federal Reserve after a two-day policy meeting that concluded on Wednesday, 28 April 2010 left interest rates unchanged. The Fed offered a more upbeat view of the US economy and employment prospects. The Fed retained its pledge to keep interest rates low for an extended period because of low inflation and high unemployment. The Fed has kept interest rates near zero since December 2008.
Back home, the Congress-led United Progressive Alliance government sailed through a trial of strength in parliament on Tuesday by winning the cut motion demanded by opposition parties against an unpopular hike in fuel and fertiliser prices with smaller parties giving it a leg up to achieve a surprisingly strong victory. Prime Minister Manmohan Singh's government was backed by 289 MPs in the 545-strong Lok Sabha, while the opposition managed 201 votes. Two parties walked out on the vote, adding to abstentions. However, major reforms may take a backseat for the some time to come as there is a stiff resistance by the opposition on fears it may hurt the poor.
On the macro front, the latest data showed infrastructure sector output jumped 7.2% in March 2010 from a year earlier, higher than an upwardly revised rise of 4.7% in February 2010.
The Indian Meteorological department (IMD) expects normal rainfall in the June-September monsoon season this year. Rainfall is likely to be 98% of the long-term average, the IMD said on 23 April 2010. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season holds key.
The Reserve Bank of India expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand.
In its half-yearly World Economic Outlook, the International Monetary Fund (IMF) has pegged India's GDP growth at 8.75% in calendar 2010 and 8.5% in calendar 2011. According to the IMF, domestic demand in India will strengthen as the labour market improves, and investment is expected to be boosted by strong corporate profitability, rising business confidence and favourable financing conditions.
The RBI said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted. A 25 basis points hike in the cash reserve ratio (CRR) with effective from 24 April 2010 will suck out excess liquidity of Rs 12500 crore from the banking system.
The key benchmark extended losses for the second straight day on Wednesday, 28 April 2010 as world stocks reeled from rating downgrades on Greece and Portugal. The BSE 30-share Sensex fell 310.54 points or 1.76% to 17380.08 and The S&P CNX Nifty declined 92.90 points or 1.75% at 5,215.45.
As per provisional figures on NSE, foreign funds sold shares worth Rs 131.13 crore and domestic funds bought shares worth Rs 324.10 crore on Wednesday, 28 April 2010.
RELIEF RALLY LIKELY
Some semblance of stability has returned to the global markets though Europe continues to be rattled by concerns that the debt problems of PIIGS group could linger on for a while and might spread to other parts of the region. Meanwhile, ratings agency S&P downgraded Spain's credit rating and said the outlook is negative. Incidentally, the Greek market was one of the few indices to rise in Europe after its regulator banned short selling for two months.
In the US, the Fed left key rates steady and didn’t make any change in its language. The Fed said that the US economy continues to strengthen and the labor market is beginning to improve. The Fed’s rate action and commentary helped Wall Street post a modest advance. Asian markets are mixed but relatively stable. Japanese market is shut today.
We expect a steady start on Indian bourses. After a sharp fall there is always a chance of a rebound. But the F&O expiry and uncertainty over the emerging financial situation in Europe may continue to haunt the bulls. Aggressive buying should be avoided till the near-term turbulence is over. The market will be volatile and we advise you to focus on stock centric action after doing proper due diligence.
Results Today: Andhra Bank, Ashok Leyland, BASF India, Bata India, Biocon, Cadila, Ceat, CESC, HCL Infosystems, Hexaware, Indiabulls Real Estate, ING Vysya Bank, IOB, KEC International, Mahindra Holidays, MRF, OBC, Parsvnath Developers, Shriram Transport, Siemens, Thomas Cook, UltraTech, UB Holding and United Phosphorus.
FIIs were net sellers of Rs1.31bn on Wednesday on a provisional basis. Local funds were net buyers of Rs3.24bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers of Rs9.94bn. On Tuesday, FIIs were net buyers of Rs1.6bn in the cash segment, as per the SEBI web site.
US stocks managed to end marginally higher on Wednesday, with the Dow Jones Industrial Average reclaiming the 11,000 mark after the Federal Reserve said that economic activity is picking up, and that it will hold a key short-term interest rate steady for an extended period of time. The broader market was mixed as investors considered European debt problems and a string of quarterly earnings reports.
The Dow gained 53 points, or 0.5%, to end at 11,045.27. The 11,000 level has psychological meaning, but is not a key technical level for traders.
The S&P 500 index added 7 points, or 0.7%, closing above 1,185, a key support level. The Nasdaq Composite was barely changed at 2,471.73.
The dollar gained versus the euro and the yen. The euro turned lower after the Spain rating cut.
US light crude oil for June delivery rose 78 cents to settle at $83.22 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery rose $9.60 to settle at $1,171.80 per ounce.
Treasury prices fell, raising the yield on the 10-year note to 3.77% from 3.69% on Tuesday. Prices had rallied on Tuesday as stocks slumped, with investors seeking safety in government debt.
For every stock on the decline more than two were on the rise on the New York Stock Exchange, where nearly 1.4 billion shares traded hands.
Financial stocks led the S&P 500 higher, getting a lift from some earnings reports, a stalled debate on a bank-reform bill.
US stocks had surged more aggressively in the first 90 minutes after the Fed announcement but gave up bigger gains late in the session.
Stocks had struggled earlier as earnings news competed against euro zone debt worries after Standard & Poor's cut Spain's rating, one day after lowering Portugal's debt rating and cutting Greece's rating to junk. The downgrades pummeled US stocks on Tuesday and also dragged on international markets on Wednesday.
The Fed policymakers offered a positive take on the US economy and promised no change in interest rates for the foreseeable future. The central bank held the fed funds rate steady at historic lows near zero, as expected, and also said that conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.
Once again, Federal Reserve Governor Thomas M. Hoenig dissented, objecting to the "extended period" phrase on worries about inflationary concerns. The bankers also talked up the economy, saying activity has strengthened, the labor market is starting to improve and household spending has picked up a bit, but not enough to drive inflation.
Greece is facing a May 19 deadline for refinancing about $11.4 billion in debt and investors are worried it could default. Although Greece has gotten the approval to access over $53 billion in loans from the European Union and the International Monetary Fund, the funds have not yet been made available.
Some of the worries surrounding Greece partly subsided on reports that the loan package could be increased to as much as $160 billion. Additionally, Germany - the largest of the 16 euro zone countries - said its portion of the initial loan package could be approved by the end of next week.
The cost of insuring Greek debt dropped from record highs hit on Wednesday morning, and the euro bounced back versus the dollar after falling to a one-year low.
Dow Chemical reported higher quarterly sales and earnings that topped estimates, as higher pricing boosted global sales. Shares gained almost 6%.
Defense contractors General Dynamics and Northrop Grumman both reported higher quarterly earnings that topped estimates.
AOL reported quarterly earnings and revenues that fell from a year ago and missed expectations, as the company contended with dwindling sales and a weakening subscriber base. Shares fell 14.5%.
After the close, Hewlett-Packard said it was buying smartphone maker Palm in a $1.2 billion all-cash deal that values Palm at $5.70 per share. The deal puts an end to months of takeover rumors regarding the struggling company, a leader in the handheld device market that has struggled amid the rise of smartphones.
European shares extended declines at the end of a tumultuous session after S&P downgraded sovereign credit rating of Spain. After Tuesday's 3.1% slide, the Stoxx Europe 600 index dropped 1.3% to 258.24. S&P downgraded Spain's credit rating to AA from AA+ with a negative outlook. S&P had cut Greece's rating to below investment grade and also had sliced Portugal's rating on Tuesday.
A German lawmaker said that Greece may receive up to 120 billion euros of aid over three years. The IMF and the EU have said they will lend 45 billion euros to Greece, though that assistance has yet to materialize. Some say the aid will arrive in time for Greece to pay off 8.5 billion euros due May 19. The Greek ASE Composite index rose 0.6% to 1,707.35 as the Greek securities regulation banned short selling.
The IBEX 35 however dropped 3% to 10,167.00 in Madrid. The French CAC-40 index declined 1.5% to 3,787.00, the German DAX index lost 1.2% to 6,084.34 and the UK's FTSE 100 index fell 0.3% to 5,586.61. After escaping the global rout on Tuesday, it was time for Indian markets to join the worldwide meltdown as ratings downgrade of Greece and Portugal spark fears of a wider financial crisis in the Eurozone.
"The turmoil in the international markets continued unabated amid growing concerns of sovereign debt problems in parts of Europe. In addition, the earnings season has been a mixed one, with many blue chips such as RIL, ICICI Bank, Maruti and Bharti Airtel missing the consensus estimates which further accelerated sell-off on the Indian bourses", says Amar Ambani, Vice President Research IIFL.
The BSE Sensex lost 311 points to end at 17,380 and NSE Nifty slipped 93 points to close at 5,215. Among the 30 components of Sensex, 25 ended in the negative terrain and only SBI, Sun Pharma, HUL and ACC managed to end in the green.
Markets across the US, Europe and Asia witnessed sharp losses after Standard & Poor's cut Greece's debt rating to junk and downgraded Portugal's rating by two notches. Markets in Asia ended in the red; the Nikkei in Japan ended lower by 2.5%, Australia's S&P/ASX was down 1.1%, the Hang Seng index in Hong Kong was down 1.5% and Shanghai SE Composite ended lower by 0.3%.
On the other hand, European indices were trading with negative bias, the DAX in Germany was down 1.5%, the CAC 40 index in France was down 1.5% and the FTSE in the UK was down 0.5%.
All the BSE sectoral indices ended in the red, the BSE Realty index was top loser, the index lost 3.5%, followed by BSE Oil & Gas index down 2.8% and Metal index down 2.2%. Even the Mid-Cap and the Small-cap index lost 1.6% and 2% respectively.
Outside the frontline indices, the big losers in the broader market were GMR Infra, Concor, Bajaj Holding, RCF and Indian Hotels. On the other hand, gainers included RNRL, Cummins, BOB and Piramal Healthcare.
Gujarat NRE Coke announced that the board of directors of the Company will meet on April 29, 2010, to consider allotment of 11% Secured Redeemable Non Convertible Debentures not exceeding Rs2.5bn along with warrants not exceeding Rs2.5bn on Qualified Institutional Placement (QIP) basis.
The stock pared all its gained and ended lower by 1.3%. The scrip opened at Rs88.7 it touched an intra-day high of Rs88.8 and a low of Rs86.5 and recorded volumes of over 0.92mn shares on BSE.
Shares of Tech Mahindra declined by 4.4% to end at Rs770 after AT&T sold ~8.6mn shares, or 7% of its equity to Life Insurance Corp in two block deals on NSE. In late March this year, AT&T had picked up an 8.07% stake in Tech Mahindra from the Indian promoters in return for a certain amount of business over a period.
It had bought about 9.87mn shares in an off-market transaction at about Rs162 per share. An agreement signed between the two companies in May 2005 gave AT&T the option to purchase shares in Tech Mahindra if it met certain revenue targets.
REpower Systems AG – in which Suzlon Energy is a majority shareholder with over 90 per cent holding – together with Deutsche Offshore-Testfeld und Infrastruktur-GmbH (DOTI) and additional project partners, inaugurated the first German offshore wind farm project - alpha ventus, on April 27, in the presence of the Federal Minister for the Environment Dr. Norbert Röttgen.
The stock ended lower by 2.2%. The scrip opened at Rs69.9 it touched an intra-day high of Rs69.95 and a low of Rs68.5 and recorded volumes of over 3.6mn shares on BSE.
Dabur India gained 1.2% to end at Rs180 after the company posted a net profit of Rs1.35bn for the quarter ended March 31, 2010 as compared to Rs1.04bn for the quarter ended March 31, 2009. Total Income increased from Rs7.40bn for the quarter ended March 31, 2009 to Rs8.63bn for the quarter ended March 31, 2010.
Suven Life Sciences advanced by 1.2% to Rs31.45 after the company announced that the New Zealand Patent Office issued a Patent 548743 and the India n Patent Office has issued a patent 238017 to their New Chemical Entities (NCSs) for the treatment of disorders associated with Newrodegenerative diseases and these Patents are valid until 2024 and 2025 respectively.
Balrampur Chini Mills ended lower by 1.5% to Rs82.25. The company posted a net profit of Rs275.5mn for the quarter ended March 31, 2010 as compared to Rs661.9mn for the quarter ended March 31, 2009. Total Income increased from Rs3.57bn for the quarter ended March 31, 2009 to Rs4.71bn for the quarter ended March 31, 2010.
DAILY NEWS ROUNDUP - MARCH 29, 2010
RIL has made a fourth oil discovery in the Cambay basin in Gujarat. (BS)
AT&T has sold 7% stake in Tech Mahindra for Rs6.6bn; LIC buys 6%. (BS)
Tata Group and Actis to form US$2bn JV for building roads over 5 years. (ET)
NTPC to invest Rs400bn in three coal base power project in Madhya Pradesh. (ET)
NTPC and Coal India enters into a JV for coal block acquisitions. (BL)
Royal Dutch Shell is no longer in exclusive talks with Essar Oil for sale of its refineries in UK and Germany. (ET)
Suzlon’s European division forms JV with Volkswind to accelerate growth in Bulgaria. (ET)
Punj Lloyd bags an order for the Cuddalore refinery of Nagarjuna Oil. (ET)
US investment fund Bravia Capital Partners has proposed to invest US$40mn into SpiceJet. (ET)
Suven Lifescience granted patents in India and New Zealand. (BL)
Tata Africa will soon start vehicle assembly plant in Nigeria in the next 2-3 years. (ET)
Sebi has decided against filing a joint application before a court to resolve its dispute with Irda over Ulips. (BS)
Infrastructure companies may soon be able to re-finance part of domestic debt through borrowing overseas. (ET)
Government mulls 100% FDI in defence. (BS)
All India 3G bid has reached Rs89.14bn at the end of 16th day of auction. (ET)
Mines Ministry seeks windfall tax to curb illegal iron-ore mining. (BS)
India’s sugar production is likely to rise by 28% to 22.7mn tons in 2010-11 according to US Department of Agriculture. (BS)
Tobacco exports grew 29% yoy to Rs43.7bn in FY10. (BS)
IT spending in India is likely to grow by 14% to Rs67bn in 2010 says Gartner. (ET)
Food inflation to decline in coming months says FM. (ET)
CERC raise overdrawal charges to 12.25/unit. (ET)
AT&T has sold 7% stake in Tech Mahindra for Rs6.6bn; LIC buys 6%. (BS)
Tata Group and Actis to form US$2bn JV for building roads over 5 years. (ET)
NTPC to invest Rs400bn in three coal base power project in Madhya Pradesh. (ET)
NTPC and Coal India enters into a JV for coal block acquisitions. (BL)
Royal Dutch Shell is no longer in exclusive talks with Essar Oil for sale of its refineries in UK and Germany. (ET)
Suzlon’s European division forms JV with Volkswind to accelerate growth in Bulgaria. (ET)
Punj Lloyd bags an order for the Cuddalore refinery of Nagarjuna Oil. (ET)
US investment fund Bravia Capital Partners has proposed to invest US$40mn into SpiceJet. (ET)
Suven Lifescience granted patents in India and New Zealand. (BL)
Tata Africa will soon start vehicle assembly plant in Nigeria in the next 2-3 years. (ET)
Sebi has decided against filing a joint application before a court to resolve its dispute with Irda over Ulips. (BS)
Infrastructure companies may soon be able to re-finance part of domestic debt through borrowing overseas. (ET)
Government mulls 100% FDI in defence. (BS)
All India 3G bid has reached Rs89.14bn at the end of 16th day of auction. (ET)
Mines Ministry seeks windfall tax to curb illegal iron-ore mining. (BS)
India’s sugar production is likely to rise by 28% to 22.7mn tons in 2010-11 according to US Department of Agriculture. (BS)
Tobacco exports grew 29% yoy to Rs43.7bn in FY10. (BS)
IT spending in India is likely to grow by 14% to Rs67bn in 2010 says Gartner. (ET)
Food inflation to decline in coming months says FM. (ET)
CERC raise overdrawal charges to 12.25/unit. (ET)
Wednesday, April 28, 2010
STOCKS LIKELY TO START WEAK
Headlines for the day:
Ranbaxy to launch 100 new products this year
Govt may sell stake in IOC by March
Events for the day:
Major corporate action
Tara Health Foods IPO opens today
Maithan Alloys to consider bonus issue
Tarapur Transformers IPO closes today
Results: Bank of Baroda, Dabur, Bharti Airtel
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares fell at their fastest rate in five months on Tuesday, weighed by ratings agency Standard & Poor's downgrade of Greek and Portuguese debt.
The US equities tumbled Tuesday with stocks posting their worst day in the last three months after downgrades of Greece and Portugal fueled fears of stability of the euro-zone nations.
In today's trade, the Asian markets were trading on a negative note. At the time of writing this report, SGX Nifty was trading 69 points lower.
Indian markets
The downgrade of Greece and Portugal by the credit rating agency Standard & Poor's has feared the euro zone's debt problems and that has resulted in sell-off across the globe. Owing to this, the Indian equities may open gap-down and remain negative for rest of the day. Ahead of the Federal rate meet decision to be announced today and the F&O expiry tomorrow, the market is expected to remain volatile. The dollar depreciation against the rupee will be good for the Indian market, which offers the higher growth doubled with rupee appreciation that augers well for the investors in US. This must have triggered the heavy buying by the foreign institutional investors (FIIs) post the budget.
Commodity cues
In the commodity space, the crude oil prices plunged over 2% after Greece and Portugal's debt downgrade fueled concerns, with the Nymex light crude oil for the May series down by $1.76 per barrel, whereas in the metals space, the Comex Gold for the May series rose by $8.20 and the Comex Silver for the May series was down by $0.22 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On April 27, 2010, the FIIs were the net buyers of the Indian stocks to the tune of Rs565.80 crore, whereas the domestic mutual funds, on April 26, 2010, were the net sellers of the stocks to the tune of Rs28.80 crore.
Ranbaxy to launch 100 new products this year
Govt may sell stake in IOC by March
Events for the day:
Major corporate action
Tara Health Foods IPO opens today
Maithan Alloys to consider bonus issue
Tarapur Transformers IPO closes today
Results: Bank of Baroda, Dabur, Bharti Airtel
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares fell at their fastest rate in five months on Tuesday, weighed by ratings agency Standard & Poor's downgrade of Greek and Portuguese debt.
The US equities tumbled Tuesday with stocks posting their worst day in the last three months after downgrades of Greece and Portugal fueled fears of stability of the euro-zone nations.
In today's trade, the Asian markets were trading on a negative note. At the time of writing this report, SGX Nifty was trading 69 points lower.
Indian markets
The downgrade of Greece and Portugal by the credit rating agency Standard & Poor's has feared the euro zone's debt problems and that has resulted in sell-off across the globe. Owing to this, the Indian equities may open gap-down and remain negative for rest of the day. Ahead of the Federal rate meet decision to be announced today and the F&O expiry tomorrow, the market is expected to remain volatile. The dollar depreciation against the rupee will be good for the Indian market, which offers the higher growth doubled with rupee appreciation that augers well for the investors in US. This must have triggered the heavy buying by the foreign institutional investors (FIIs) post the budget.
Commodity cues
In the commodity space, the crude oil prices plunged over 2% after Greece and Portugal's debt downgrade fueled concerns, with the Nymex light crude oil for the May series down by $1.76 per barrel, whereas in the metals space, the Comex Gold for the May series rose by $8.20 and the Comex Silver for the May series was down by $0.22 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On April 27, 2010, the FIIs were the net buyers of the Indian stocks to the tune of Rs565.80 crore, whereas the domestic mutual funds, on April 26, 2010, were the net sellers of the stocks to the tune of Rs28.80 crore.
DAILY NEWS ROUNDUP -APRIL 28, 2010
The government may sell stake in IOC by March 31, as part of a plan to raise a record Rs400bn from asset sales and use the proceeds to reduce the government’s budget deficit. (BS)
ONGC and IOC are set to get approval from the government to spend five times more on acquisitions, giving them greater freedom to compete with China for assets. (BS)
NPCIL and NTPC have entered into an agreement to set up nuclear power projects, with the latter holding 49% stake in the JV. (BS)
NTPC and SAIL are expected to be permitted to make US$1.1bn takeovers without government clearance. (BS)
SAIL and Posco, who are in talks to jointly set up a steel plant in Jharkhand, are also exploring forming another JV to build a Rs10bn specialized steel mill in Maharashtra. (BS)
TCS has been shortlisted for another tender by the ministry of overseas Indian affairs along with Wipro and Spanco. (ET)
Jindal Steel and Power and Australian coal miner Rocklands Richfield (RCI) plan to form a 50:50 joint venture company to develop a coal-brick project at Raigarh in Chhattisgarh. (ET)
Reliance Communications has joined hands with GetJar, the world's second largest mobile applications store, for providing its subscribers with access to nearly 65,000 free mobile applications. (BL)
Power Finance Corporation plans to raise US$1bn through overseas borrowings to increase its lending to local companies. (ET)
Power Finance Corporation plans to approach the RBI to seek the status of an infrastructure finance company. (BL)
IDFC board approved, in principle, a plan to raise up to Rs35bn through Tier-I and Tier-II instruments. (BS)
Unitech stated that it sold 16.6mn sq ft of area in the country last financial year. (BS)
Cipla ties up with Manipal Group promoted-Stempeutics Research to market stem cell-based therapies. (BS)
Ranbaxy plans to launch 100 new products this year and target to become the biggest player in the domestic market with 6% market share in the next three years. (BS)
The Godrej group is on the lookout for personal care companies manufacturing toilet bar soaps in Latin America. (BL)
The NYSE has given Satyam Computer time till October 15, 2010 to file its annual report and remain listed on the US bourse till then. (BS)
The Ruias of Essar Group have injected US$293mn in Essar Oil by subscribing to GDS to part finance its US$1.7bn expansion plans. (ET)
Bharat Forge has got the land for its upcoming SEZ at Khed near Pune, but environmental clearances are pending. (BL)
Bharat Forge expects to start the marketing effort for the first phase of its 10,500 acre SEZ at Khed in the next few months. (ET)
Patni Computer Systems signed a definitive agreement to acquire CHCS Services, a wholly-owned subsidiary of Universal American Corp. (BS)
Patni Computer Systems bagged a multi-million dollar five-year agreement for providing policy administration services to NYSE listed Universal American Corp. (BL)
Lupin is looking to buy drug companies in Brazil and Mexico as an entry strategy to the two emerging markets. (BL)
Divi's Laboratories has secured approval from the Development Commissioner, SEZs, for setting up a new manufacturing unit for pharma ingredients near Visakhapatnam. (BL)
Infinite Computer Solutions has signed the R-APDRP with Uttarakhand Power Corporation valued at Rs1.3bn. (BL)
Government is assured of Rs350bn from sale of 3G telephony spectrum, as bids for pan-India operations rose to Rs86.6bn on the 15th day of auction. (ET)
The government informed the Rajya Sabha that direct tax collection during FY10 has exceed the budget estimate and will be very close to the revised estimate of Rs3870bn. (ET)
The MET predicts the monsoon to arrive 10 days before the usual date. (BS)
Six major infrastructure industries which constitute the core sector registered growth of 7.2% in March. (BS)
The country added 20mn new mobile users in the month of March, taking the user base to 584.3mn. (BS)
Exporters would now have to pay more for their shipments as most airlines, including state run Air India, have raised freight rates between 15-30% for both general cargo and perishables. (BS)
Even as the steel ministry is aggressively pitching for an increase in export duty on iron ore, the commerce and industry ministry is considering a minor increase of duty on exports of iron ore lumps only. (BS)
The government indicated that it was open to changing FDI norms for multi-brand retail sector. (BS)
The RBI governor said that India will not be averse to using an instrument such as Tobin Tax to curb excessive capital inflows. (BL)
New bank wage agreement will give staff Rs48bn. (BL)
The FIPB has decided that companies bringing in FDI by issuing warrants will have to convert them into fully paid-up equity within 12 months of the date of issue, or face legal action. (FE)
ONGC and IOC are set to get approval from the government to spend five times more on acquisitions, giving them greater freedom to compete with China for assets. (BS)
NPCIL and NTPC have entered into an agreement to set up nuclear power projects, with the latter holding 49% stake in the JV. (BS)
NTPC and SAIL are expected to be permitted to make US$1.1bn takeovers without government clearance. (BS)
SAIL and Posco, who are in talks to jointly set up a steel plant in Jharkhand, are also exploring forming another JV to build a Rs10bn specialized steel mill in Maharashtra. (BS)
TCS has been shortlisted for another tender by the ministry of overseas Indian affairs along with Wipro and Spanco. (ET)
Jindal Steel and Power and Australian coal miner Rocklands Richfield (RCI) plan to form a 50:50 joint venture company to develop a coal-brick project at Raigarh in Chhattisgarh. (ET)
Reliance Communications has joined hands with GetJar, the world's second largest mobile applications store, for providing its subscribers with access to nearly 65,000 free mobile applications. (BL)
Power Finance Corporation plans to raise US$1bn through overseas borrowings to increase its lending to local companies. (ET)
Power Finance Corporation plans to approach the RBI to seek the status of an infrastructure finance company. (BL)
IDFC board approved, in principle, a plan to raise up to Rs35bn through Tier-I and Tier-II instruments. (BS)
Unitech stated that it sold 16.6mn sq ft of area in the country last financial year. (BS)
Cipla ties up with Manipal Group promoted-Stempeutics Research to market stem cell-based therapies. (BS)
Ranbaxy plans to launch 100 new products this year and target to become the biggest player in the domestic market with 6% market share in the next three years. (BS)
The Godrej group is on the lookout for personal care companies manufacturing toilet bar soaps in Latin America. (BL)
The NYSE has given Satyam Computer time till October 15, 2010 to file its annual report and remain listed on the US bourse till then. (BS)
The Ruias of Essar Group have injected US$293mn in Essar Oil by subscribing to GDS to part finance its US$1.7bn expansion plans. (ET)
Bharat Forge has got the land for its upcoming SEZ at Khed near Pune, but environmental clearances are pending. (BL)
Bharat Forge expects to start the marketing effort for the first phase of its 10,500 acre SEZ at Khed in the next few months. (ET)
Patni Computer Systems signed a definitive agreement to acquire CHCS Services, a wholly-owned subsidiary of Universal American Corp. (BS)
Patni Computer Systems bagged a multi-million dollar five-year agreement for providing policy administration services to NYSE listed Universal American Corp. (BL)
Lupin is looking to buy drug companies in Brazil and Mexico as an entry strategy to the two emerging markets. (BL)
Divi's Laboratories has secured approval from the Development Commissioner, SEZs, for setting up a new manufacturing unit for pharma ingredients near Visakhapatnam. (BL)
Infinite Computer Solutions has signed the R-APDRP with Uttarakhand Power Corporation valued at Rs1.3bn. (BL)
Government is assured of Rs350bn from sale of 3G telephony spectrum, as bids for pan-India operations rose to Rs86.6bn on the 15th day of auction. (ET)
The government informed the Rajya Sabha that direct tax collection during FY10 has exceed the budget estimate and will be very close to the revised estimate of Rs3870bn. (ET)
The MET predicts the monsoon to arrive 10 days before the usual date. (BS)
Six major infrastructure industries which constitute the core sector registered growth of 7.2% in March. (BS)
The country added 20mn new mobile users in the month of March, taking the user base to 584.3mn. (BS)
Exporters would now have to pay more for their shipments as most airlines, including state run Air India, have raised freight rates between 15-30% for both general cargo and perishables. (BS)
Even as the steel ministry is aggressively pitching for an increase in export duty on iron ore, the commerce and industry ministry is considering a minor increase of duty on exports of iron ore lumps only. (BS)
The government indicated that it was open to changing FDI norms for multi-brand retail sector. (BS)
The RBI governor said that India will not be averse to using an instrument such as Tobin Tax to curb excessive capital inflows. (BL)
New bank wage agreement will give staff Rs48bn. (BL)
The FIPB has decided that companies bringing in FDI by issuing warrants will have to convert them into fully paid-up equity within 12 months of the date of issue, or face legal action. (FE)
RATING DOWNGRADES ON GREECE AND PORTUGAL MAY PULL MARKET LOWER; BHARTI AIRTEL Q4 RESULTS EYED
The market is seen opening sharply lower as global stocks reeled from rating downgrades on Greece and Portugal. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicate that the Nifty could fall 67.50 points at the opening bell. Asian stock markets fell as renewed worries about Greece's debt problems led to sharp decline in US stocks on Tuesday. The key benchmark indices in Hong Kong, Japan, South Korea, Singapore, Taiwan and Indonesia were down by between 0.96% to 2.47%. But, China's Shanghai Composite rose 0.18%.
US stocks tumbled on Tuesday as downgrades of Greece and Portugal fueled fear about euro-zone economic stability, and a grilling of Goldman Sachs on Capitol Hill heightened the possibility of financial reforms. The Dow Jones Industrial Average dropped 213.04 points, or 1.90% to 10,991.99. The Standard & Poor's 500 Index slid 28.34 points, or 2.34% to 1,183.71. The Nasdaq Composite Index lost 51.48 points, or 2.04% to 2,471.47.
Concerns about Europe intensified when global rating agency Standard & Poor's on Tuesday downgraded Greece's debt to junk status and hit Portugal with a two-notch rating cut. Greece has already admitted it can't pay debts due shortly and has asked for a bailout from European neighbors and the International Monetary Fund.
Back home, the Congress-led United Progressive Alliance government sailed through a trial of strength in parliament on Tuesday by winning the cut motion demanded by opposition parties against an unpopular hike in fuel and fertiliser prices with smaller parties giving it a leg up to achieve a surprisingly strong victory. Prime Minister Manmohan Singh's government was backed by 289 MPs in the 545-strong Lok Sabha, while the opposition managed 201 votes. Two parties walked out on the vote, adding to abstentions. However, major reforms may take a backseat for the some time to come as there is a stiff resistance by the opposition on fears it may hurt the poor.
On the macro front, the latest data showed infrastructure sector output jumped 7.2% in March 2010 from a year earlier, higher than an upwardly revised rise of 4.7% in February 2010.
The Q4 March 2010 corporate earnings announced so far have been good. The combined net profit of a total of 346 companies rose 32% to Rs 24530 crore on 42.7% rise in sales to Rs 216947 crore in the quarter ended March 2010 over the quarter ended March 2009.
Bharti Airtel, Alstom Projects, Balaji Telefilms, Balrampur Chini Mills, Bank of Baroda, Canara Bank, Dabur India, Exide Industries, Ingersoll Rand, Kesoram Industries, LIC Housing Finance, Marico, MIC Electronics, Shoppers Stop, Advanta India, REI Agro, Eicher Motors among other will announce their January-March 2010 quarter result today.
The Indian Meteorological department (IMD) expects normal rainfall in the June-September monsoon season this year. Rainfall is likely to be 98% of the long-term average, the IMD said on 23 April 2010. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season holds key.
The latest data showed the annual food and fuel inflation ticked higher, raising worries central bank may raise interest rates before the next scheduled policy review in July 2010. The food price index rose 17.65% in the year to 10 April 2010. The fuel price index rose 12.45% and the primary articles index rose 14.14% in the year to 10 April 2010, the latest government data showed.
The Reserve Bank of India expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand.
In its half-yearly World Economic Outlook, the International Monetary Fund (IMF) has pegged India's GDP growth at 8.75% in calendar 2010 and 8.5% in calendar 2011. According to the IMF, domestic demand in India will strengthen as the labour market improves, and investment is expected to be boosted by strong corporate profitability, rising business confidence and favourable financing conditions.
Indian stocks had notched some gains recently after the Reserve Bank of India (RBI) raised interest rates on 20 April 2010 by less than some economists had expected and forecast inflation will slow. From a recent low of 17400.68 on 19 April 2010, the BSE Sensex jumped 345.60 points or 1.98% to 17745.28 on Monday, 26 April 2010. Optimism about the fourth quarter corporate earnings and hopes of a normal monsoon this year aided the rally
The RBI said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted. A 25 basis points hike in the cash reserve ratio (CRR) with effective from 24 April 2010 will suck out excess liquidity of Rs 12500 crore from the banking system.
However, the key benchmark indices edged lower on Tuesday, 27 April 2010 snapping gains in the preceding five trading sessions, on weak global stocks. The BSE 30-share Sensex lost 54.66 points or 0.31% to settle at 17,690.62.
As per provisional figures on NSE, foreign funds sold shares worth Rs 164.29 crore and domestic funds bought shares worth Rs 1.09 crore on Tuesday.
US stocks tumbled on Tuesday as downgrades of Greece and Portugal fueled fear about euro-zone economic stability, and a grilling of Goldman Sachs on Capitol Hill heightened the possibility of financial reforms. The Dow Jones Industrial Average dropped 213.04 points, or 1.90% to 10,991.99. The Standard & Poor's 500 Index slid 28.34 points, or 2.34% to 1,183.71. The Nasdaq Composite Index lost 51.48 points, or 2.04% to 2,471.47.
Concerns about Europe intensified when global rating agency Standard & Poor's on Tuesday downgraded Greece's debt to junk status and hit Portugal with a two-notch rating cut. Greece has already admitted it can't pay debts due shortly and has asked for a bailout from European neighbors and the International Monetary Fund.
Back home, the Congress-led United Progressive Alliance government sailed through a trial of strength in parliament on Tuesday by winning the cut motion demanded by opposition parties against an unpopular hike in fuel and fertiliser prices with smaller parties giving it a leg up to achieve a surprisingly strong victory. Prime Minister Manmohan Singh's government was backed by 289 MPs in the 545-strong Lok Sabha, while the opposition managed 201 votes. Two parties walked out on the vote, adding to abstentions. However, major reforms may take a backseat for the some time to come as there is a stiff resistance by the opposition on fears it may hurt the poor.
On the macro front, the latest data showed infrastructure sector output jumped 7.2% in March 2010 from a year earlier, higher than an upwardly revised rise of 4.7% in February 2010.
The Q4 March 2010 corporate earnings announced so far have been good. The combined net profit of a total of 346 companies rose 32% to Rs 24530 crore on 42.7% rise in sales to Rs 216947 crore in the quarter ended March 2010 over the quarter ended March 2009.
Bharti Airtel, Alstom Projects, Balaji Telefilms, Balrampur Chini Mills, Bank of Baroda, Canara Bank, Dabur India, Exide Industries, Ingersoll Rand, Kesoram Industries, LIC Housing Finance, Marico, MIC Electronics, Shoppers Stop, Advanta India, REI Agro, Eicher Motors among other will announce their January-March 2010 quarter result today.
The Indian Meteorological department (IMD) expects normal rainfall in the June-September monsoon season this year. Rainfall is likely to be 98% of the long-term average, the IMD said on 23 April 2010. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season holds key.
The latest data showed the annual food and fuel inflation ticked higher, raising worries central bank may raise interest rates before the next scheduled policy review in July 2010. The food price index rose 17.65% in the year to 10 April 2010. The fuel price index rose 12.45% and the primary articles index rose 14.14% in the year to 10 April 2010, the latest government data showed.
The Reserve Bank of India expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand.
In its half-yearly World Economic Outlook, the International Monetary Fund (IMF) has pegged India's GDP growth at 8.75% in calendar 2010 and 8.5% in calendar 2011. According to the IMF, domestic demand in India will strengthen as the labour market improves, and investment is expected to be boosted by strong corporate profitability, rising business confidence and favourable financing conditions.
Indian stocks had notched some gains recently after the Reserve Bank of India (RBI) raised interest rates on 20 April 2010 by less than some economists had expected and forecast inflation will slow. From a recent low of 17400.68 on 19 April 2010, the BSE Sensex jumped 345.60 points or 1.98% to 17745.28 on Monday, 26 April 2010. Optimism about the fourth quarter corporate earnings and hopes of a normal monsoon this year aided the rally
The RBI said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted. A 25 basis points hike in the cash reserve ratio (CRR) with effective from 24 April 2010 will suck out excess liquidity of Rs 12500 crore from the banking system.
However, the key benchmark indices edged lower on Tuesday, 27 April 2010 snapping gains in the preceding five trading sessions, on weak global stocks. The BSE 30-share Sensex lost 54.66 points or 0.31% to settle at 17,690.62.
As per provisional figures on NSE, foreign funds sold shares worth Rs 164.29 crore and domestic funds bought shares worth Rs 1.09 crore on Tuesday.
Tuesday, April 27, 2010
GREECE CONCERNS PULL DOWN CRUDE PRICES
Prices fluctuate throughout the day
Crude oil prices ended lower at Nymex on Monday, 26 April 2010. Persisting problems surrounding Greece and its budgetary deficit kept crude prices fluctuating. A strong dollar also pushed prices lower.
On Monday, crude-oil futures for light sweet crude for June delivery closed at $84.2/barrel (lower by $0.92 or 1.1%). During intra day trading, crude fell to a low of $83.96 and rose to a high of $85.68. Last week, crude ended higher by 0.5%. For the month of March, crude rose 5.1%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 5%.
Prices are still very much lower as compared to 3 July, 2008 settlement of $145.29 a barrel and an intraday high of $147.27 on 11 July, 2008, an all-time high. However, oil has also gained nearly 153% from a December 2008 nadir. That day prices settled at $33.87 a barrel following an intraday low of $32.40.
In the currency market on Monday, the dollar index, which measures the strength of the dollar against basket of six other currencies rose by 0.2%. The euro slipped as German Chancellor Angela Merkel said in a press conference, that aid would be provided to Greece if absolutely necessary and if Greece meets certain conditions, cautioning that an aid deal still needs to be worked out.
Other energy products followed crude oil lower on Monday. Gasoline for June delivery declined a penny, or 0.6%, to $2.3453 a gallon.
On Monday, natural-gas futures bucked the trend to post gains. Natural gas for June delivery, the most active contract, rose a penny, or 0.2%, to $4.3510 per million British thermal units.
Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for May delivery closed lower by Rs 44 (1.2%) at Rs 3,736/barrel. Natural gas for April delivery closed at unchanged at Rs 189.2/mmbtu.
Crude oil prices ended lower at Nymex on Monday, 26 April 2010. Persisting problems surrounding Greece and its budgetary deficit kept crude prices fluctuating. A strong dollar also pushed prices lower.
On Monday, crude-oil futures for light sweet crude for June delivery closed at $84.2/barrel (lower by $0.92 or 1.1%). During intra day trading, crude fell to a low of $83.96 and rose to a high of $85.68. Last week, crude ended higher by 0.5%. For the month of March, crude rose 5.1%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 5%.
Prices are still very much lower as compared to 3 July, 2008 settlement of $145.29 a barrel and an intraday high of $147.27 on 11 July, 2008, an all-time high. However, oil has also gained nearly 153% from a December 2008 nadir. That day prices settled at $33.87 a barrel following an intraday low of $32.40.
In the currency market on Monday, the dollar index, which measures the strength of the dollar against basket of six other currencies rose by 0.2%. The euro slipped as German Chancellor Angela Merkel said in a press conference, that aid would be provided to Greece if absolutely necessary and if Greece meets certain conditions, cautioning that an aid deal still needs to be worked out.
Other energy products followed crude oil lower on Monday. Gasoline for June delivery declined a penny, or 0.6%, to $2.3453 a gallon.
On Monday, natural-gas futures bucked the trend to post gains. Natural gas for June delivery, the most active contract, rose a penny, or 0.2%, to $4.3510 per million British thermal units.
Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for May delivery closed lower by Rs 44 (1.2%) at Rs 3,736/barrel. Natural gas for April delivery closed at unchanged at Rs 189.2/mmbtu.
DAILY NEWS ROUNDUP -APRIL 27, 2010
Mahindra & Mahindra is interested in buying stakes in beleaguered South Korean sports utility vehicle manufacturer SsangYong Motor Company (SMC). (BS)
ONGC ultimate reserve accretion (including its joint ventures) in domestic fields in 2009-10 has been 87.37mn tons oil and oil equivalent gas (mtoe) against the MoU target of 76.28mtoe (114.5% achievement). (BL)
The Orissa government has asked the public sector Nalco to give its consent for floating a SPV for local area development of the Potangi bauxite project area in Koraput district. (BS)
Three public sector units- Coal India, GAIL and RCF will form a consortium to revive the closed unit of Fertilizer Corporation of India at Talcher at a cost of Rs100bn. (BS)
The US Food and Drug Administrator has approved Glenmark Pharmaceutical’s oral contraceptive hormone-based drug norethindrone. (ET)
Dr Reddys Labs has begun the sale of Amlodipine Benazepril capsules, used for the treatment of hypertension, in the US. (ET)
Jay Shree Tea & Industries Ltd, belonging to the B K Birla Group, has acquired three tea gardens in East Africa – two in Rwanda and one in Uganda. (BL)
The Electrical and Automation Company, part of Larsen & Toubro, has bagged a Rs2.1bn order from the Maharashtra State Electricity Distribution Co to integrate power distribution in the State and facilitate online monitoring. (BL)
SAIL’s board may approve granting up to 74% equity to South Korean steel giant Posco in the proposed Rs110bn plant to be built jointly in Jharkhand. (BS)
Jaypee Group to bid for Federa airport's infra projects. (BS)
Bridgestone India will invest Rs26bn over the next five years to set up a manufacturing facility in Chakan, near Pune. (BL)
Tech Mahindra and Wipro are in the race for New Zealand's biggest phone firm Telecom Corp, contract potentially worth up to US$1bn. (ET)
Sun Pharmaceutical has received a setback in US litigation after a New Jersey district court decided that its top selling drug, pantoprazole, was infringing Wyeth’s patent (ET)
EID Parry has announced for acquiring a majority stake in GMR Industries, the agri-business arm of GMR Group. It plans to purchase a minimum of 65%, currently worth Rs1.5bn. (FE)
Hindustan Motors plans to roll out the Bharat Stage IV compliant CNG version of its mini truck 'HM Shifeng Winner' in new states like Maharashtra and Punjab over next few months. (ET)
Big Cinemas has acquired a chain of 188 screens in more than two dozen cities in the US, covering almost all the major centers of South Asian population from Manhattan and Edison in East Coast to Los Angeles and San Jose in California and Chicago in the Mid-West. (FE)
Punjab & Sind Bank (PSB) plans to come out with an initial public offering (IPO) to raise Rs4-5bn in end June or July first week. (BL)
The Government has fixed a price band of Rs 23-26 a share for the initial public offer of Satluj Jal Vidyut Nigam. (ET)
Non-life insurers clock 13.4% growth in 2009-10. (BS)
The RBI has initiated an exercise to set up a housing start-up index (HSUI) to track new residential projects in 31 major cities and measure the changes in construction activities. (FE)
ONGC ultimate reserve accretion (including its joint ventures) in domestic fields in 2009-10 has been 87.37mn tons oil and oil equivalent gas (mtoe) against the MoU target of 76.28mtoe (114.5% achievement). (BL)
The Orissa government has asked the public sector Nalco to give its consent for floating a SPV for local area development of the Potangi bauxite project area in Koraput district. (BS)
Three public sector units- Coal India, GAIL and RCF will form a consortium to revive the closed unit of Fertilizer Corporation of India at Talcher at a cost of Rs100bn. (BS)
The US Food and Drug Administrator has approved Glenmark Pharmaceutical’s oral contraceptive hormone-based drug norethindrone. (ET)
Dr Reddys Labs has begun the sale of Amlodipine Benazepril capsules, used for the treatment of hypertension, in the US. (ET)
Jay Shree Tea & Industries Ltd, belonging to the B K Birla Group, has acquired three tea gardens in East Africa – two in Rwanda and one in Uganda. (BL)
The Electrical and Automation Company, part of Larsen & Toubro, has bagged a Rs2.1bn order from the Maharashtra State Electricity Distribution Co to integrate power distribution in the State and facilitate online monitoring. (BL)
SAIL’s board may approve granting up to 74% equity to South Korean steel giant Posco in the proposed Rs110bn plant to be built jointly in Jharkhand. (BS)
Jaypee Group to bid for Federa airport's infra projects. (BS)
Bridgestone India will invest Rs26bn over the next five years to set up a manufacturing facility in Chakan, near Pune. (BL)
Tech Mahindra and Wipro are in the race for New Zealand's biggest phone firm Telecom Corp, contract potentially worth up to US$1bn. (ET)
Sun Pharmaceutical has received a setback in US litigation after a New Jersey district court decided that its top selling drug, pantoprazole, was infringing Wyeth’s patent (ET)
EID Parry has announced for acquiring a majority stake in GMR Industries, the agri-business arm of GMR Group. It plans to purchase a minimum of 65%, currently worth Rs1.5bn. (FE)
Hindustan Motors plans to roll out the Bharat Stage IV compliant CNG version of its mini truck 'HM Shifeng Winner' in new states like Maharashtra and Punjab over next few months. (ET)
Big Cinemas has acquired a chain of 188 screens in more than two dozen cities in the US, covering almost all the major centers of South Asian population from Manhattan and Edison in East Coast to Los Angeles and San Jose in California and Chicago in the Mid-West. (FE)
Punjab & Sind Bank (PSB) plans to come out with an initial public offering (IPO) to raise Rs4-5bn in end June or July first week. (BL)
The Government has fixed a price band of Rs 23-26 a share for the initial public offer of Satluj Jal Vidyut Nigam. (ET)
Non-life insurers clock 13.4% growth in 2009-10. (BS)
The RBI has initiated an exercise to set up a housing start-up index (HSUI) to track new residential projects in 31 major cities and measure the changes in construction activities. (FE)
Monday, April 26, 2010
MARKET MAY EXTEND GAINS ON HIGHER ASIAN STOCK;RIL,ICICI BANK FOCUS AFTER Q4 RESULTS
The market may extend gains for the fifth straight day on higher Asian stocks. Forecast of a normal monsoon this year may further aid investor sentiment. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicate that the Nifty could gain 34 points at the opening bell.
However, volatility may remain high as traders roll over positions in the derivatives segment from the April 2010 series to the May 2010 series ahead of the expiry of the near-month April 2010 contracts on Thursday, 29 April 2010. Index heavyweight Reliance Industries (RIL) after market hours on Friday, 23 April 2010, posted lower than expected Q4 results. ICICI Bank and HDFC Bank reported good Q4 results on Saturday, 24 April 2010.
Asian stocks moved higher on Monday, after broad gains in US stocks on Friday. The key benchmark indices in Hong Kong, Indonesia, Japan, South Korea, Singapore and Taiwan rose by between 0.47% to 2.08%. But, China's Shanghai Composite fell 0.2%.
US stocks rose to a 19-month high on Friday 23 April 2010 as Merck eased concerns about the impact of healthcare reform, saying its costs will be relatively low. The Dow Jones industrial average gained 69.99 points, or 0.63%, to 11,204.28. The Standard & Poor's 500 Index rose 8.61 points, or 0.71%, to 1,217.28. The Nasdaq Composite Index added 11.08 points, or 0.44%, to 2,530.15.
Back home, the Indian Meteorological department (IMD) expects normal rainfall in the June-September monsoon season this year. Rainfall is likely to be 98% of the long-term average, it said. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season holds key.
The Q4 March 2010 results announced so far have been good. The combined net profit of a total of 209 companies rose 26.4% to Rs 20075 crore on 45.6% rise in sales to Rs 178270 crore in the quarter ended March 2010 over the quarter ended March 2009. Carmaker Maruti Suzuki India and leading copper producer Sterlite Industries will announce their Q4 result today, 26 April 2010.
Index heavyweight Reliance Industries (RIL) after trading hours on Friday, 23 April 2010 said net profit rose 29.9% to Rs 4710 crore in Q4 March 2010 over Q4 March 2009. The results were below market expectations.
India's largest private sector bank by net profit ICICI Bank on Saturday, 24 April 2010 reported its net profit rose 35.2% to Rs 1005.57 crore in Q4 March 2010 over Q4 March 2009.
India's second largest private sector bank by net profit HDFC Bank on Saturday, 24 April 2010 reported its net profit rose 32.61% to Rs 836.62 crore in Q4 March 2010 over Q4 March 2009.
The latest data showed the annual food and fuel inflation ticked higher, raising worries central bank may raise interest rates before the next scheduled policy review in July 2010. The food price index rose 17.65% in the year to 10 April 2010. The fuel price index rose 12.45% and the primary articles index rose 14.14% in the year to 10 April 2010, the latest government data showed.
The Reserve Bank of India expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand.
In its half-yearly World Economic Outlook, the International Monetary Fund (IMF) has pegged India's GDP growth at 8.75% in calendar 2010 and 8.5% in calendar 2011. According to the IMF, domestic demand in India will strengthen as the labour market improves, and investment is expected to be boosted by strong corporate profitability, rising business confidence and favourable financing conditions.
Indian stocks rose for a fourth day in a row on Friday, 23 April 2010, after the Reserve Bank of India (RBI) raised interest rates on Tuesday, 20 April 2010, by less than some economists had expected and forecast inflation will slow. From a recent low of 17,400.68 on Monday, 19 April 2010, the BSE Sensex jumped 293.52 points or 1.68% to 17694.20 to settle at 17694.20 on Friday, 23 April 2010. Optimism about the fourth quarter corporate earnings and hopes of a normal monsoon this year aided the rally
The RBI said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted. A 25 basis points hike in the cash reserve ratio (CRR) with effective from 24 April 2010 will suck out excess liquidity of Rs 12500 crore from the banking system.
As per provisional figures on NSE, foreign funds bought shares worth Rs 339.30 crore and domestic funds bought shares worth Rs 29.0 crore on Friday.
However, volatility may remain high as traders roll over positions in the derivatives segment from the April 2010 series to the May 2010 series ahead of the expiry of the near-month April 2010 contracts on Thursday, 29 April 2010. Index heavyweight Reliance Industries (RIL) after market hours on Friday, 23 April 2010, posted lower than expected Q4 results. ICICI Bank and HDFC Bank reported good Q4 results on Saturday, 24 April 2010.
Asian stocks moved higher on Monday, after broad gains in US stocks on Friday. The key benchmark indices in Hong Kong, Indonesia, Japan, South Korea, Singapore and Taiwan rose by between 0.47% to 2.08%. But, China's Shanghai Composite fell 0.2%.
US stocks rose to a 19-month high on Friday 23 April 2010 as Merck eased concerns about the impact of healthcare reform, saying its costs will be relatively low. The Dow Jones industrial average gained 69.99 points, or 0.63%, to 11,204.28. The Standard & Poor's 500 Index rose 8.61 points, or 0.71%, to 1,217.28. The Nasdaq Composite Index added 11.08 points, or 0.44%, to 2,530.15.
Back home, the Indian Meteorological department (IMD) expects normal rainfall in the June-September monsoon season this year. Rainfall is likely to be 98% of the long-term average, it said. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season holds key.
The Q4 March 2010 results announced so far have been good. The combined net profit of a total of 209 companies rose 26.4% to Rs 20075 crore on 45.6% rise in sales to Rs 178270 crore in the quarter ended March 2010 over the quarter ended March 2009. Carmaker Maruti Suzuki India and leading copper producer Sterlite Industries will announce their Q4 result today, 26 April 2010.
Index heavyweight Reliance Industries (RIL) after trading hours on Friday, 23 April 2010 said net profit rose 29.9% to Rs 4710 crore in Q4 March 2010 over Q4 March 2009. The results were below market expectations.
India's largest private sector bank by net profit ICICI Bank on Saturday, 24 April 2010 reported its net profit rose 35.2% to Rs 1005.57 crore in Q4 March 2010 over Q4 March 2009.
India's second largest private sector bank by net profit HDFC Bank on Saturday, 24 April 2010 reported its net profit rose 32.61% to Rs 836.62 crore in Q4 March 2010 over Q4 March 2009.
The latest data showed the annual food and fuel inflation ticked higher, raising worries central bank may raise interest rates before the next scheduled policy review in July 2010. The food price index rose 17.65% in the year to 10 April 2010. The fuel price index rose 12.45% and the primary articles index rose 14.14% in the year to 10 April 2010, the latest government data showed.
The Reserve Bank of India expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand.
In its half-yearly World Economic Outlook, the International Monetary Fund (IMF) has pegged India's GDP growth at 8.75% in calendar 2010 and 8.5% in calendar 2011. According to the IMF, domestic demand in India will strengthen as the labour market improves, and investment is expected to be boosted by strong corporate profitability, rising business confidence and favourable financing conditions.
Indian stocks rose for a fourth day in a row on Friday, 23 April 2010, after the Reserve Bank of India (RBI) raised interest rates on Tuesday, 20 April 2010, by less than some economists had expected and forecast inflation will slow. From a recent low of 17,400.68 on Monday, 19 April 2010, the BSE Sensex jumped 293.52 points or 1.68% to 17694.20 to settle at 17694.20 on Friday, 23 April 2010. Optimism about the fourth quarter corporate earnings and hopes of a normal monsoon this year aided the rally
The RBI said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted. A 25 basis points hike in the cash reserve ratio (CRR) with effective from 24 April 2010 will suck out excess liquidity of Rs 12500 crore from the banking system.
As per provisional figures on NSE, foreign funds bought shares worth Rs 339.30 crore and domestic funds bought shares worth Rs 29.0 crore on Friday.
DAILY NEWS ROUNDUP -APRIL 26, 2010
DLF arm buys out PE stake in group firm for Rs31bn. (BL)
TCS, Infosys, Wipro and IBM vie for Bharti Airtel outsourcing operations worth over a US$1bn. (ET)
NTPC may raise US$500mn through external commercial borrowings this financial year. (BS)
EID Parry (India) says it has entered into an agreement with the promoters of GMR Industries, the agri business arm of GMR Group, to buy 51% of their stake in the company. (TOI)
ICICI Bank has brought back its special home loan offer following rival and mortgage major HDFC’s move to relaunch a similar product last week. (TOI)
Pantaloon Retail says the company will demerge three of its businesses, including that of food, into two of its subsidiaries. (TOI)
NTPC has missed its capacity addition target by almost 50% in 2009-10 by adding only 1560MW, as against a target of 3,330MW. (DNA)
ArcelorMittal has proposed a JV with SAIL to build a US$2.7bn steel plant in eastern India. (DNA)
Reliance Industries has zeroed in on Singapore based infrastructure firm InfraCo to offload 45% stake in its 25,000 acre-Jhajjar (Haryana) SEZ. (FE)
Tata motors may roll out 800cc small car by 2012. (BS)
Reliance Communications is close to signing an agreement with US-based GetJar to launch its own application store. (BS)
TCS, Infosys, HCL Technologies and Wipro get eliminated from the selection process for the Unique Identification Authority of India project. (BS)
Areva T&D to tie up with Bharat Forge, L&T on solar energy. (BS)
Maruti Suzuki plans to scale up production by at least 70,000 units this year. (BS)
MindTree is understood to have emerged as the winner for the application development services segment of the Unique Identification project. (BS)
International Finance Corporation will invest US$60mn in Apollo Tyres' greenfield manufacturing project coming up on the outskirts of Chennai. (FE)
Cairn India begins second crude oil processing plant at its Mangala oilfield in Thar desert of Rajasthan. (BS)
Tata Power offers to take over the distribution business of Reliance Infrastructure. (BS)
Government is mulling to more than doubling the price of natural gas produced by ONGC to US$4.20 per mmBtu. (BS)
Jaypee Infratech fixes the price band of its IPO at Rs 102-117 per share. (BS)
Escorts plans to launch up to three new tractor models in the next six months. (BS)
Coal India expects to seal strategic partnership deals with three listed companies abroad within six months, including Peabody Energy of the US. (BS)
Jet Airways is recasting itself as a network carrier by fortifying its international and domestic connectivity. (ET)
Religare Enterprises plans to go ahead with its health insurance business alone after talks of tie-ups hit a wall over support issue. (ET)
EID-Parry has entered into an agreement with GMR Holding to acquire a majority stake in GMR Industries. (ET)
Foreign exchange reserves rose by US$61mn to US$280bn for the week ended April 16. (BL)
Centre has fixed the ‘fair and remunerative price' of sugarcane for the ensuing 2010-11 sugar season at Rs 139/quintal. (BL)
Value of 3G spectrum moved up by over Rs6bn to close at Rs76bn. (BL)
Cabinet gave its nod to infuse Rs150bn in public sector banks during 2010-11 to help them maintain capital requirements and boost their credit growth. (BL)
Government is likely to increase tax on all forms of iron ore to 20%. (FE)
IMD forecasts a normal monsoon across the country this year. (BS)
RBI plans to free interest rates on certain segments of export finance. (BS)
Government is considering a proposal to ease foreign direct investment rules in the retail sector. (BS)
TCS, Infosys, Wipro and IBM vie for Bharti Airtel outsourcing operations worth over a US$1bn. (ET)
NTPC may raise US$500mn through external commercial borrowings this financial year. (BS)
EID Parry (India) says it has entered into an agreement with the promoters of GMR Industries, the agri business arm of GMR Group, to buy 51% of their stake in the company. (TOI)
ICICI Bank has brought back its special home loan offer following rival and mortgage major HDFC’s move to relaunch a similar product last week. (TOI)
Pantaloon Retail says the company will demerge three of its businesses, including that of food, into two of its subsidiaries. (TOI)
NTPC has missed its capacity addition target by almost 50% in 2009-10 by adding only 1560MW, as against a target of 3,330MW. (DNA)
ArcelorMittal has proposed a JV with SAIL to build a US$2.7bn steel plant in eastern India. (DNA)
Reliance Industries has zeroed in on Singapore based infrastructure firm InfraCo to offload 45% stake in its 25,000 acre-Jhajjar (Haryana) SEZ. (FE)
Tata motors may roll out 800cc small car by 2012. (BS)
Reliance Communications is close to signing an agreement with US-based GetJar to launch its own application store. (BS)
TCS, Infosys, HCL Technologies and Wipro get eliminated from the selection process for the Unique Identification Authority of India project. (BS)
Areva T&D to tie up with Bharat Forge, L&T on solar energy. (BS)
Maruti Suzuki plans to scale up production by at least 70,000 units this year. (BS)
MindTree is understood to have emerged as the winner for the application development services segment of the Unique Identification project. (BS)
International Finance Corporation will invest US$60mn in Apollo Tyres' greenfield manufacturing project coming up on the outskirts of Chennai. (FE)
Cairn India begins second crude oil processing plant at its Mangala oilfield in Thar desert of Rajasthan. (BS)
Tata Power offers to take over the distribution business of Reliance Infrastructure. (BS)
Government is mulling to more than doubling the price of natural gas produced by ONGC to US$4.20 per mmBtu. (BS)
Jaypee Infratech fixes the price band of its IPO at Rs 102-117 per share. (BS)
Escorts plans to launch up to three new tractor models in the next six months. (BS)
Coal India expects to seal strategic partnership deals with three listed companies abroad within six months, including Peabody Energy of the US. (BS)
Jet Airways is recasting itself as a network carrier by fortifying its international and domestic connectivity. (ET)
Religare Enterprises plans to go ahead with its health insurance business alone after talks of tie-ups hit a wall over support issue. (ET)
EID-Parry has entered into an agreement with GMR Holding to acquire a majority stake in GMR Industries. (ET)
Foreign exchange reserves rose by US$61mn to US$280bn for the week ended April 16. (BL)
Centre has fixed the ‘fair and remunerative price' of sugarcane for the ensuing 2010-11 sugar season at Rs 139/quintal. (BL)
Value of 3G spectrum moved up by over Rs6bn to close at Rs76bn. (BL)
Cabinet gave its nod to infuse Rs150bn in public sector banks during 2010-11 to help them maintain capital requirements and boost their credit growth. (BL)
Government is likely to increase tax on all forms of iron ore to 20%. (FE)
IMD forecasts a normal monsoon across the country this year. (BS)
RBI plans to free interest rates on certain segments of export finance. (BS)
Government is considering a proposal to ease foreign direct investment rules in the retail sector. (BS)
DAILY MARKET STRATEGY..APRIL 26, 2010
"Victory is sweetest when you've known defeat."
It was exactly the case for the Chennai Super Kings as they edged out the favourites - the Mumbai Indians in the IPL final. As far as the market is concerned, the gains made over the past one year or so have been spectacular post the global meltdown. Today promises to be yet another sweet start for the market on the back of good global tidings. The key to watch is whether the Nifty closes above 5350.
Equities worldwide have gained after Greece decided to tap into the EU-IMF loan. The initial monsoon forecast is encouraging. Earnings from a couple of big private banks have been pretty robust. On the flip side, Reliance’s results were slightly disappointing. Crude oil is above $85. The political temperature is rising and calls for tighter bank regulations have got shriller in the US.
As the MI’s loss to CSK shows, nobody is invincible. So, one has to guard against complacency. No need to take undue risk. Wait for a decisive move in key indices. We expect the market to remain sideways and rangebound ahead of the Fed meet and F&O expiry.
Results Today: Allied Digital, AstraZeneca Pharma, Bosch, Geometric, Godrej Consumer, Indiabulls Financials, Indoco Remedies, Kiri Dyes, Kirloskar Brothers, Maruti Suzuki, Religare, Sterlite Industries, Tata Metaliks and Uco Bank.
FIIs were net buyers of Rs3.39bn on Friday on a provisional basis. Local funds were net buyers of Rs290.9mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers of Rs3.58bn. On Thursday, FIIs were net buyers of Rs17.48bn in the cash segment, as per the SEBI web site. Mutual funds were net buyers at Rs2.47bn in the cash segment on the same day.
US stocks closed higher on Friday, with the Dow, Nasdaq and S&P 500 all ending at fresh 2010 highs, buoyed by a stronger than anticipated new-home sales data, a spike in commodities and improved earnings from American Express.
The Dow Jones Industrial Average extended it's longest weekly winning streak in six years. A surprisingly weak durable-goods orders report had earlier raised worries about the state of the world's largest economy.
The dollar was volatile amid news that Greece had finally decided to accept the emergency financial aid jointly extended by European Union (EU) and the IMF.
A variety of homebuilder stocks jumped. Energy stocks too advanced as crude oil prices crossed USUS$85 a barrel and Schlumberger gave a promising outlook.
The Dow rose 70 points, or 0.6%, to end at 11,204.28, the highest close since Sept. 19, 2008. The S&P 500 index advanced 8 points, or 0.7%, to close at 1217.28, also the highest point since Sept. 19, 2008.
The Nasdaq gained 11 points, or 0.4%, to finish at 2530.15, the highest point since June 5, 2008.
The dollar fell versus the euro, giving up morning gains. The greenback advanced versus the yen.
US light crude oil for June delivery rose US$1.42 to US$85.12 a barrel on the New York Mercantile Exchange. Long-dated contracts suggested even stronger prices later in the year, including a move above US$90 by December.
COMEX gold for June delivery rose US$10.80 to settle at US$1,153.70 per ounce. Copper and silver also advanced.
Treasury prices fell, raising the yield on the 10-year note to 3.82% from 3.77% late on Thursday.
The Dow has now risen for eight weeks straight, its longest positive streak since January 2004. The Nasdaq has also risen for eight consecutive weeks. The S&P 500 ended lower last week and has risen for seven of the last eight weeks.
Stocks were choppy early in the morning as investors considered a variety of economic, corporate and geopolitical news. But the undertone turned positive by the close, with the Dow and S&P 500 ending at fresh 18-month highs and the Nasdaq closing at a new 22-month high.
Greece's prime minister chose to access up to US$53bn in aid from the EU and IMF. Greece's bond yields had hit record highs before the debt-plagued nation activated the loans made available to it earlier this month. The EU pledged to provide as much as US$40bn at a 5% interest rate, well below market rate. The IMF said it would lend Greece US$13bn.
Investors grew more optimistic about the US economy following a Commerce Department report showing that sales of new homes posted their largest year-over-year increase in nearly five years. Stocks erased early losses after the Commerce Department report.
In the housing report, new home sales rose to a 411,000-unit annual rate in March from a 324,000-unit annual rate in February, a 27% increase that was the fastest rate of gain in 47 years. Economists had expected sales of 330,000.
Orders for durable goods fell 1.3% in March, the Commerce Department reported. Orders rose 1.1% in February and were expected to rise 0.1% in March, according to a consensus of economists.
American Express reported higher quarterly earnings late on Thursday that topped estimates. The Dow component also said its customers spent more in the first quarter than a year earlier and that it set aside less money for loan losses. Shares gained 2% on Friday.
Fellow credit card distributor Capitol One Financial also posted earnings that improved from a year earlier and topped estimates, and also set aside less for loan losses than in previous quarters. However, the company said customer loan demand is still weak. Shares gained 2.5%.
Microsoft posted a higher quarterly profit that surpassed forecasts late Thursday. The results were due to a continued strong response to it Windows 7 operating system, introduced six months ago, as well as its Bing search engine. Shares fell 2% on Friday.
Also after the close on Thursday, Amazon.com reported earnings that jumped 68% from a year ago, surpassing forecasts, on higher sales that also beat expectations. Amazon shares fell 4.5%.
Merck rallied 5% and was one of the Dow's biggest gainers after it forecast charges related to healthcare reform that are lower than its rivals. Merck expects to take around US$170mn in charges this year and between US$300mn and US$350mn in charges next year.
Schlumberger shares were up 6.6% after it announced a 28% decline in first-quarter earnings but forecast a full-year turnaround. Smith International, which is due to be acquired by Schlumberger in a deal pending regulatory approval, was up 7.1%.
Sears Holdings Corp. gained 8.1%. The biggest US department-store company agreed to buy William Ackman’s hedge fund’s stake in Sears Canada Inc., in a move that would allow it to take the company private.
European stocks rose on Friday after Greece formally requested for access to EU-IMF loan package and business confidence in Germany improved. Investors also welcomed better-than-expected earnings from the likes of Adidas, Volvo, Ericsson and Akzo Nobel.
The Stoxx Europe 600 Index rose 0.8% to 267.42. The benchmark gauge for European shares has declined 0.2% this week, its second straight weekly loss. The Stoxx 600 has climbed 5.3% in 2010.
Greece formally asked to tap a €45bn (US$59.9bn) European Union-International Monetary Fund aid package on Friday. Greece's call for activation of the EU-IMF financial lifeline is a litmus test for the euro's strength and the economic bloc's unity.
The situation for Greek government bonds improved a bit after the news. But the Greek ASE Composite Index slipped 0.2% to 1,857.96.
Germany's DAX index climbed 1.5% to 6,259.53, the UK's FTSE 100 index rose 1% to 5,723.65 and the French CAC-40 index gained 0.7% to 3,951.30.
Friday's advance erased some of Thursday's 1.1% loss after Eurostat projected a significantly higher budget deficit for Greece in 2009 than the debt-heavy government had predicted. Also, Greece rating was subsequently downgraded by Moody's.
The euro, which tumbled on Thursday, managed to regain a bit of ground against the US dollar.
German business confidence rose to a two-year high in April as the global economic recovery boosted exports and industrial activity got a fillip from warmer weather. The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, increased to 101.6 from 98.2 in March. Economists expected a gain to 98.7.
A separately report showed that the UK economy grew half as much as forecast in the first quarter of 2010. GDP expanded by 0.2% from the final three months of 2009, the Office for National Statistics said. Economists had predicted a 0.4% gain.
The Indian markets outperformed international peers in a result heavy week as the RBI chose a more measured approach to monetary tightening than had been feared. Though the market did witness some volatility owing mainly to global jitters, overall mood was upbeat due to strong earnings momentum. Finally, the BSE Sensex gained 0.6% and the NSE Nifty added 0.8% to shut shop at 17,694 and 5,304 respectively. While, the broader indices did better than the benchmark indices, small-cap and the mid-cap index gained over 1.5% each.
Barring the Metals and the IT index all the other BSE sectoral indices ended in positive terrain. Big gainers were the BSE BSE Banking index rose over 5% followed by the BSE Auto index up 2.5%.
The FII continued to be net buyers in the Indian markets; they bought stocks to the tune of Rs5.28bn last five and even the DIIs turned net buyers to the tune of Rs5.30bn.
The BSE Sensex hit an intra-week high of 17,778 and low of 17,276 while NSE Nifty hit an intra-week high of 5,332 and low of 5,160.
Barring the Metals and the IT index all the other BSE sectoral indices ended in positive terrain. Big gainers were the BSE BSE Banking index rose over 5% followed by the BSE Auto index up 2.5%.
The FII continued to be net buyers in the Indian markets; they bought stocks to the tune of Rs5.28bn last five and even the DIIs turned net buyers to the tune of Rs5.30bn.
The BSE Sensex hit an intra-week high of 17,778 and low of 17,276 while NSE Nifty hit an intra-week high of 5,332 and low of 5,160.
Friday, April 23, 2010
FLAT TO NEGETIVE OPENING LIKELY; RIL,WIPRO RESULT EYED
Headlines for the day:
Teaser rates are back
Essar Energy valued at $9.5-11 billion
Atlas, Reliance to buy more shale gas acreage
Events for the day:
Major corporate action
Talwalkars IPO closes today
Nitesh Estates IPO opens today
Results: Reliance Industries, Wipro, MMTC, Areva T&D
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares hit a 3-week closing low on Thursday, with banks slipping as Greek's debt concerns resurfaced and Nokia dropping after it cut its profit outlook.
The US stocks staged a late-day comeback on Thursday as strong quarterly profits from consumer bellwethers like Starbucks Corp outweighed worries about Greece's shaky finances.
In today's trade, the Asian markets were trading in a negative territory, except Shanghai Composite. At the time of writing this report, SGX Nifty was trading 12 points lower.
Indian markets
Subdued start by the Asian indices may pull the Sensex down in the opening hours. India’s largest company by the market cap Reliance Industries and IT major Wipro will announce their earnings today, the stocks will be closely eyed by the investors. The foreign institutional investors (FIIs) inflow has been slowed down in this week, which may be a cause of worry for the short-term traders. Even the Greece' debt concern, which is still not resolved, may act as a dampener. On the other hand, the FIIs inflow and the earnings of the companies, will decide whether the domestic indices will end the week in negative or positive, which has been flat till date.
Commodity cues
In the commodity space, the crude oil prices inches higher as a rebound in equities overshadows demand and global recovery concerns, with the Nymex light crude oil for the May series down by $0.02 per barrel, whereas in the metals space, the Comex Gold for the May series declined by $5.90 and the Comex Silver for the May series was down by $0.06 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On April 22, 2010, the FIIs were the net buyers of the Indian stocks to the tune of Rs264.80 crore, whereas the domestic mutual funds, on April 20, 2010, were the net buyers of the stocks to the tune of Rs101.90 crore.
Teaser rates are back
Essar Energy valued at $9.5-11 billion
Atlas, Reliance to buy more shale gas acreage
Events for the day:
Major corporate action
Talwalkars IPO closes today
Nitesh Estates IPO opens today
Results: Reliance Industries, Wipro, MMTC, Areva T&D
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares hit a 3-week closing low on Thursday, with banks slipping as Greek's debt concerns resurfaced and Nokia dropping after it cut its profit outlook.
The US stocks staged a late-day comeback on Thursday as strong quarterly profits from consumer bellwethers like Starbucks Corp outweighed worries about Greece's shaky finances.
In today's trade, the Asian markets were trading in a negative territory, except Shanghai Composite. At the time of writing this report, SGX Nifty was trading 12 points lower.
Indian markets
Subdued start by the Asian indices may pull the Sensex down in the opening hours. India’s largest company by the market cap Reliance Industries and IT major Wipro will announce their earnings today, the stocks will be closely eyed by the investors. The foreign institutional investors (FIIs) inflow has been slowed down in this week, which may be a cause of worry for the short-term traders. Even the Greece' debt concern, which is still not resolved, may act as a dampener. On the other hand, the FIIs inflow and the earnings of the companies, will decide whether the domestic indices will end the week in negative or positive, which has been flat till date.
Commodity cues
In the commodity space, the crude oil prices inches higher as a rebound in equities overshadows demand and global recovery concerns, with the Nymex light crude oil for the May series down by $0.02 per barrel, whereas in the metals space, the Comex Gold for the May series declined by $5.90 and the Comex Silver for the May series was down by $0.06 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On April 22, 2010, the FIIs were the net buyers of the Indian stocks to the tune of Rs264.80 crore, whereas the domestic mutual funds, on April 20, 2010, were the net buyers of the stocks to the tune of Rs101.90 crore.
DAILY NEWS ROUNDUP -APRIL 23, 2010
NTPC is likely to sign contracts next week to buy additional 1.51mn cubic meters a day of gas from RIL at the Government approved price. (ET)
SBI mulls issue of bonds to institutional and retail investors for raising funds which would be redeemed by the Government on maturity. (FE)
Atlas Energy Inc along with Reliance Industries plans to buy 42,344 acres in the gas-rich Marcellus shale. (BS)
ICICI Bank has cut home loan rates by bringing back its old teaser home loan rate product till the end of the month. (ET)
TCS sets sights on onsite work again with the return of discretionary technology spending. (FE)
L&T plans to realign its electrical and electronics business division with its wholly-owned subsidiary in power equipment manufacturing, L&T Power. (BS)
ArcelorMittal has proposed a JV with SAIL to set-up integrated steel plant near latter’s existing facility in Bokaro, Jharkhand. (ET)
The Madhya Pradesh government has said that the Sasan UMPP, being constructed by Reliance Power, is facing delay due to environment related issues. (BS)
M&M slashes Logan prices by up to Rs80,000. (ET)
TCS may soon deploy its core banking solution at Deutsche Bank's global locations as part of a deal valued at over US$100mn. (BL)
GAIL may move to PNGRB to seek an upward revision in tariffs determined by the regulator for its existing HVJ-GREP-DVPL pipeline. (FE)
Bharat Forge launches US$150mn QIP issue. (ET)
Essar Energy, the holding company of Essar Oil, has been valued at US$9.5-11bn as it has priced its IPO on London Stock Exchange at 450-550 pence a share. (BS)
Jet Airways to offer business class seats at budget prices on select routes. (ET)
Bharat Forge, in the process of restructuring the operations of its overseas subsidiaries, has transferred the operations and assets of Bharat Forge Scottish Stampings Ltd to Bharat Forge Kilsta AB of Sweden, a wholly-owned subsidiary. (BL)
Gujarat Gas Company has received an allocation of 0.6mmscmd of KG D6 gas from the Government of India on a fallback basis. (BS)
Bajaj Hindusthan will invest about Rs150bn in setting up power projects totaling 2,430 Mw in Uttar Pradesh. (BS)
Aurobindo Pharma, which has targeted to cross Rs100bn in revenues by 2013, proposes to invest Rs2.5bn every year for the next five years. (BS)
Piramal Healthcare has acquired Bharat Serums And Vaccines (BSV) Ltd's injectible anaesthetic products business. (BL)
Ansal API is returning to Gurgaon after nearly seven years, with a Rs10bn township project planned in Sector 67. (BS)
India to become the largest DTH market by 2012, as per study by research firm Media Partners Asia. (BS)
The steel companies have assured the ministry that they will not increase prices by more than 5% over the next 5-6 months. (ET)
Food inflation for the second week of April rose to 17.65%. (ET)
The life insurance industry recorded 68% increase to Rs254bn in new business premium collected in March 2010 compared to Rs151bn in the corresponding month in 2009. (BS)
India’s iron ore exports fell for a third straight month in February, despite robust demand from main buyer China, as a government crackdown on illegal mining hit supplies. (BS)
In a move designed to curb iron ore exports, the Government is set to increase the tax on iron ore exports. (BL)
SBI mulls issue of bonds to institutional and retail investors for raising funds which would be redeemed by the Government on maturity. (FE)
Atlas Energy Inc along with Reliance Industries plans to buy 42,344 acres in the gas-rich Marcellus shale. (BS)
ICICI Bank has cut home loan rates by bringing back its old teaser home loan rate product till the end of the month. (ET)
TCS sets sights on onsite work again with the return of discretionary technology spending. (FE)
L&T plans to realign its electrical and electronics business division with its wholly-owned subsidiary in power equipment manufacturing, L&T Power. (BS)
ArcelorMittal has proposed a JV with SAIL to set-up integrated steel plant near latter’s existing facility in Bokaro, Jharkhand. (ET)
The Madhya Pradesh government has said that the Sasan UMPP, being constructed by Reliance Power, is facing delay due to environment related issues. (BS)
M&M slashes Logan prices by up to Rs80,000. (ET)
TCS may soon deploy its core banking solution at Deutsche Bank's global locations as part of a deal valued at over US$100mn. (BL)
GAIL may move to PNGRB to seek an upward revision in tariffs determined by the regulator for its existing HVJ-GREP-DVPL pipeline. (FE)
Bharat Forge launches US$150mn QIP issue. (ET)
Essar Energy, the holding company of Essar Oil, has been valued at US$9.5-11bn as it has priced its IPO on London Stock Exchange at 450-550 pence a share. (BS)
Jet Airways to offer business class seats at budget prices on select routes. (ET)
Bharat Forge, in the process of restructuring the operations of its overseas subsidiaries, has transferred the operations and assets of Bharat Forge Scottish Stampings Ltd to Bharat Forge Kilsta AB of Sweden, a wholly-owned subsidiary. (BL)
Gujarat Gas Company has received an allocation of 0.6mmscmd of KG D6 gas from the Government of India on a fallback basis. (BS)
Bajaj Hindusthan will invest about Rs150bn in setting up power projects totaling 2,430 Mw in Uttar Pradesh. (BS)
Aurobindo Pharma, which has targeted to cross Rs100bn in revenues by 2013, proposes to invest Rs2.5bn every year for the next five years. (BS)
Piramal Healthcare has acquired Bharat Serums And Vaccines (BSV) Ltd's injectible anaesthetic products business. (BL)
Ansal API is returning to Gurgaon after nearly seven years, with a Rs10bn township project planned in Sector 67. (BS)
India to become the largest DTH market by 2012, as per study by research firm Media Partners Asia. (BS)
The steel companies have assured the ministry that they will not increase prices by more than 5% over the next 5-6 months. (ET)
Food inflation for the second week of April rose to 17.65%. (ET)
The life insurance industry recorded 68% increase to Rs254bn in new business premium collected in March 2010 compared to Rs151bn in the corresponding month in 2009. (BS)
India’s iron ore exports fell for a third straight month in February, despite robust demand from main buyer China, as a government crackdown on illegal mining hit supplies. (BS)
In a move designed to curb iron ore exports, the Government is set to increase the tax on iron ore exports. (BL)
Thursday, April 22, 2010
INDIAN EQUITIES MAY OPEN LOWER
Headlines for the day:
R-Infra hits out at Tata Power
IOC to market bio-lubricant next year
M&M starts work on electric two-wheelers
Events for the day:
Major corporate action
Weekly inflation to be announced today
Ex-date for stock split from Rs10 to Re1 of Tatia Global
Results: ACC, Nestle India, Ambuja Cements, MahinFin
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares fell on Wednesday, led by banking stocks on investor concerns over how Greece will finance its debt as talks to hammer out details of a potential aid plan began.
The US stocks finished little changed on Wednesday as disappointing outlooks from healthcare companies offset strong earnings from Morgan Stanley and Apple Inc.
In today's trade, the Asian markets were trading in a negative territory. At the time of writing this report, SGX Nifty was trading 26 points lower.
Indian markets
After two days of gains, the market may open lower owing to the fairly negative global cues. Following into the session, weekly inflation along with the earnings of the companies may decide the course of the day. The FIIs inflow is a concern and their activity needs to be closely watched. The Sensex is currently trading at 21.09 times the earnings of its underlying 30 stocks earnings on TTM basis. This shows that the Sensex is currently trading above its fair valuation, thus we might not see much movement in the index levels. However, investment in the good value stocks can be considered.
Commodity cues
In the commodity space, the crude oil prices fell amid choppy trading on Wednesday after the government's inventory report dimmed trader hopes that demand is finally rebounding, with the Nymex light crude oil for the May series down by $0.17 per barrel, whereas in the metals space, the Comex Gold for the May series rose by $9.60 and the Comex Silver for the May series was up by $0.26 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On April 21, 2010, the FIIs were the net buyers of the Indian stocks to the tune of Rs32.50 crore, whereas the domestic mutual funds, on April 19, 2010, were the net buyers of the stocks to the tune of Rs101.90 crore.
R-Infra hits out at Tata Power
IOC to market bio-lubricant next year
M&M starts work on electric two-wheelers
Events for the day:
Major corporate action
Weekly inflation to be announced today
Ex-date for stock split from Rs10 to Re1 of Tatia Global
Results: ACC, Nestle India, Ambuja Cements, MahinFin
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares fell on Wednesday, led by banking stocks on investor concerns over how Greece will finance its debt as talks to hammer out details of a potential aid plan began.
The US stocks finished little changed on Wednesday as disappointing outlooks from healthcare companies offset strong earnings from Morgan Stanley and Apple Inc.
In today's trade, the Asian markets were trading in a negative territory. At the time of writing this report, SGX Nifty was trading 26 points lower.
Indian markets
After two days of gains, the market may open lower owing to the fairly negative global cues. Following into the session, weekly inflation along with the earnings of the companies may decide the course of the day. The FIIs inflow is a concern and their activity needs to be closely watched. The Sensex is currently trading at 21.09 times the earnings of its underlying 30 stocks earnings on TTM basis. This shows that the Sensex is currently trading above its fair valuation, thus we might not see much movement in the index levels. However, investment in the good value stocks can be considered.
Commodity cues
In the commodity space, the crude oil prices fell amid choppy trading on Wednesday after the government's inventory report dimmed trader hopes that demand is finally rebounding, with the Nymex light crude oil for the May series down by $0.17 per barrel, whereas in the metals space, the Comex Gold for the May series rose by $9.60 and the Comex Silver for the May series was up by $0.26 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On April 21, 2010, the FIIs were the net buyers of the Indian stocks to the tune of Rs32.50 crore, whereas the domestic mutual funds, on April 19, 2010, were the net buyers of the stocks to the tune of Rs101.90 crore.
WATCH THE VOLATILITY
As far as the market is concerned, the wise thing to do right now is to stay guarded amid heightened volatility and uncertainty. Talking of nature, reports suggest that monsoon this year is going to be "near normal" due to receding El Nino conditions. The first official monsoon forecast from IMD will be out later today. A significant improvement in rains from last year’s near disaster will go a long way in addressing some concerns on inflation. A healthy farm sector growth will also lift the overall economic growth. As of now, one can only keep one’s fingers crossed.
Coming to today’s outlook, the start will be a little weak as Asian markets are mostly in the red. US stocks finished nearly unchanged while the lingering worries over Greece’s financial state dragged down European indices. The US dollar rose for a fifth consecutive session as Greek bond yields jumped to new record high, weighing on the euro. We continue to advocate caution as the market will remain rangebound and sideways. Valuations too are not all that compelling barring few exceptions and fund flows have been easing of late. Mid-cap and Small-cap counters may continue to outperform frontline peers but one must be extremely careful while dealing with these stocks.
Results Today: ACC. Ambuja Cements, Escorts, Gujarat Gas, Indiabulls Power, M&M Financials, Nestle India, Rallis India, Sasken, Sterlite Technologies, Strides Arcolab, Tata Sponge, Wipro and Zensar.
FIIs were net buyers of just Rs829.6mn on Wednesday on a provisional basis. Local funds were net buyers of Rs252.5mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers of Rs4.73bn. On Tuesday, FIIs were net buyers of Rs325mn in the cash segment, as per the SEBI web site.
US stocks edged higher on Wednesday as better than anticipated earnings from Apple and Boeing offset indifferent results from Yahoo and a couple of pharma companies. Weakness in the financial space also weighed on the sentiment despite good results by Morgan Stanley and Wells Fargo.
The Dow Jones Industrial Average added 8 points, or less than 0.1%, to end at 11,124.92. The S&P 500 index finished flat at 1,205.93, and the Nasdaq Composite index rose 4 points, or 0.2%, to close at 2,504.61.
The dollar edged higher against the euro but remained weak versus the Japanese yen and the UK pound.
The price of oil fell 17 cents to settle at $83.68 a barrel. Wednesday marked the first day of the June contract.
COMEX gold for June delivery prices rose $9.60 to settle at $1,148.20 an ounce.
Treasury prices were higher, with the yield on the benchmark 10-year note at 3.78%.
Decliners led advancers by a slight margin on the New York Stock Exchange, where 1.2 billion shares traded. Composite volume topped 5.9 billion.
Stocks finished Tuesday's session in positive territory, thanks to better-than-expected earnings from Goldman Sachs and several consumer companies.
Late on Tuesday, Apple posted a record quarter that blew past Wall Street's estimates. Apple shares ended more than 6.1% higher.
Yahoo also delivered earnings that beat expectations, but its sales came in below estimates. Shares closed down 4.9%.
Morgan Stanley said it swung to a $1.8 billion profit in the first quarter before the bell, as strong trading revenue boosted the Wall Street firm's latest results. Shares of Morgan ended 4.2% higher.
Wells Fargo reported a $2.5 billion profit before the bell, beating Wall Street expectations. The company said that credit conditions have "turned the corner" from the weakness of the financial crisis. Still, Wells shares fell almost 2% by the end of trading.
Overall, the finance sector ended 10.8% higher.
Merck & Co. Inc. shares fell 3.7%, the worst performer on the Dow average.
Abbott Laboratories shares were off 2.4% after the health-care-products company reported a lower first-quarter profit.
Gilead Sciences shares dropped 9.6%, making it the worst S&P 500 performer, after the HIV-drug developer issued a weaker-than-expected 2010 financial forecast.
Moody's Corp. shares lost 5.3% after a congressional panel probing the financial crisis subpoenaed the credit-ratings agency for failing to comply with a request for information.
AT&T beat estimates on a boost from strong sales of Apple's iPhone. Boeing's profit and revenue dropped amid fewer airplane deliveries. McDonalds' earnings rose above predictions as sales rose across all its markets, especially Europe and Asia. United Technologies also beat estimates.
Chrysler announced that it earned its first operating profit since exiting bankruptcy on June 10, 2009. The profit follows nearly $4 billion of losses logged by the automaker during that time.
Starbucks and other major names reported results after the bell. The coffee chain handily beat profit and sales estimates, and the company lifted 2010 guidance. Shares were up 2% in after-hours trade.
In other company news, General Motors announced that it had made a final payment of $5.8 billion late Tuesday to the U.S. and Canadian governments, paying off the last of its $6.7 billion in loans.
European stocks ended lower, as losses in the banking space offset strong earnings from both sides of the Atlantic. The Stoxx Europe 600 index declined 0.6% to close at 268.23, reversing course after having gained 1.4% in Tuesday's session.
The French CAC-40 index lost 1.2% to settle at 3,977.67, the UK's FTSE 100 index fell 1% to close at 5,723.43 and the German DAX index ended 0.5% lower at 6,230.38.
Greek banks fell again, with Alpha Bank shares losing 5.2% and Piraeus Bank dropping 3.3%. The ASE Composite Index lost 1.3% to close at 1,936.43. Losses came amid renewed concerns over how the government will finance its debt.
Greek government bond yields rose to fresh highs, as the cost of insuring the government's debt against default also reached record levels.
Greece on Wednesday began talks with its counterparts in the euro region, the International Monetary Fund (IMF) and the European Central Bank on what steps are needed for it to secure a $61 billion emergency aid package.
Indian stock benchmarks erased some of the early gains to finish nearly flat at the end of a choppy day of trade. The Indian market witnessed a follow through rally in the opening trades, buoyed by the overnight advance on Wall Street. However, as the day wore on, bulls turned a bit shaky and pared some of their gains. The key indices fell gradually from their intra-day highs, led by profit booking in the index heavyweights like Reliance Industries, L&T, BHEL and Infosys.
On the other hand, the mid-cap and the small-cap stocks maintained their tempo. Both the broader market indices outperformed the benchmark stock indexes, adding 1% and 1.5% respectively.
"Market players remained cautious as many headwinds like spike in non-food inflation, volatile crude oil prices and fiscal deficit continue to remain important issues to solve. Technically too, the key indices are facing some resistance", says Amar Ambani, Vice President Research IIFL.
The BSE Sensex gained 12 points to end at 17,472 and NSE Nifty gained 15 points to close at 5,245. Among the 30 components of Sensex, 20 ended in the positive terrain and 10 were in the red.
Markets in Asia ended in the green; the Nikkei in Japan was up 1.8%, Australia's S&P/ASX was up by 0.6%. However the Hang Seng index in Hong Kong was down 0.5%. However, and Shanghai SE Composite ended flat.
On the other hand, European indices were trading with negative bias, the DAX in Germany was down 0.2%, the CAC 40 index in France was down 0.3% and the FTSE in the UK was down 0.6%.
Coming back to India, among the BSE sectoral indices, the BSE Realty index was top gainer, the index gained 1.7%, followed by BSE Banking index up 1.25% and Auto index up 1.1%.
Even the Mid-Cap and the Small-cap index ended in the green, they added 1% and 1.5% respectively.
Outside the frontline indices, the big gainers in the broader market were Godrej Industries, Yes Bank, Jet Airways and Opto Circuits. On the other hand, losers included Cadila Health, Hindustan Copper and Castrol India.
Shares of Unitech surged by over 2.5% to end at Rs85.5 after over 20mn equity shares of the company changed hands in multi days. The trades were reportedly done between an average price of Rs86-87 per share. The company approved separating its infrastructure and telecommunications units. MD Sanjay Chandra was quoted as saying that the company expects the demerger of its infrastructure unit to take four to six months and Unitech Infra Ltd. may be listed on bourses by the end of the year, Chandra added.
For every one share held in Unitech Ltd, shareholders will get one share of the new firm Unitech Infra Ltd, to be listed on the stock exchanges.
Unitech Infra will house the property firm's infrastructure businesses including telecoms, management of amusement parks, construction business, hotels, special economic zones. The company also announced that its board approved constituting a committee to explore potential local and overseas acquisitions.
Orchid Healthcare, the US arm of Orchid Chemicals has received USFDA approval for generic modafinil, according to reports. The US regulator has approved Orchid's generic modafinil oral tablets of strength 100 mg and 200 mg. Modafinil is an analeptic drug that stimulates the central nervous system, and is for the treatment of symptoms of fatigue and excessive daytime sleepiness in narcolepsy.
The stock gained by 2.5% to end at Rs157. The scrip opened at Rs155 it touched an intra-day high of Rs158 and a low of Rs154 and recorded volumes of over 0.2mn shares on BSE.
Shares of SpiceJet surged by 1.5% to end at Rs58.65 after reports stated that the low-cost carrier is looking to raise "around" US$75mn selling shares to select investors. The scrip opened at Rs58.4 it touched an intra-day high of Rs59.8 and a low of Rs58.4 and recorded volumes of over 2.5mn shares on BSE.
Shares of Binani Cement shot up by over 8% to end at Rs85.6 after the company announced that it will consider a plan to buy back shares on April 23. The scrip opened at Rs80 it touched an intra-day high of Rs87 and a low of Rs80 and recorded volumes of over 1.1mn shares on BSE.
Shares of Shiva Cement shot up by over 9% to end at Rs9 after the board of directors are planning to meet on April 29, 2010, to consider the proposal for setting up 25 MW Captive Power Plant. The board is also planning to allot 10mn equity share warrants to promoter group at a price of Rs11/-.
Subscribe to:
Posts (Atom)