Company Name | Offer Price (Rs.) | Premium (Rs.) |
Standard Chartered PLC | 104 | Discount |
Fatpipe Networks India Ltd. | 80 to 85 | 1.5 to 2 |
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Thursday, June 10, 2010
GREY MARKET PREMIUMS CONTINUE TO BE STAGNANT.
HUNGRY ,BUT NO APPETITE!
You know my appetite is infinite and greed is more: FM Pranab Mukherjee
The Finance Minister's appetite is not for the stock market; his greed lies in looking beyond the set target for income tax collections this fiscal. Phase out of tax exemptions and widening of the tax base are on the agenda. The 3G revenues and likely stake sale in government companies could well help the government contain the fiscal deficit.
The Finance Minister's appetite is not for the stock market; his greed lies in looking beyond the set target for income tax collections this fiscal. Phase out of tax exemptions and widening of the tax base are on the agenda. The 3G revenues and likely stake sale in government companies could well help the government contain the fiscal deficit.
Tuesday, June 8, 2010
FREE DELIVERY CALL: LAKSHMI VILAS BANK
Investors with a short-term trading perspective can buy the stock of Lakshmi Vilas Bank. This stock was consolidating in a wide band between Rs 70 and Rs 90 since last September. The fact that the stock has given back only one-third of the gains recorded since March 2009 implies that the medium-term outlook is positive for this stock. It is forming a symmetric triangle over the last nine months. This is a continuation pattern within an uptrend.
The short-term trend in the stock is up since May 25. On Monday, the stock closed above the key resistance at Rs 87 accompanied by strong volumes. Momentum indicators in the daily chart are positioned in the bullish zone. Both 10-day rates of change oscillator as well as the daily moving average convergence divergence oscillator are beginning to move above the zero line. The 14-day relative strength index has moved to 65, is also in the bullish zone.
The stock could move higher to Rs 90.6 and Rs 95.2 in the days ahead. Short-term investors can buy the stock with stop at Rs 85.
The short-term trend in the stock is up since May 25. On Monday, the stock closed above the key resistance at Rs 87 accompanied by strong volumes. Momentum indicators in the daily chart are positioned in the bullish zone. Both 10-day rates of change oscillator as well as the daily moving average convergence divergence oscillator are beginning to move above the zero line. The 14-day relative strength index has moved to 65, is also in the bullish zone.
The stock could move higher to Rs 90.6 and Rs 95.2 in the days ahead. Short-term investors can buy the stock with stop at Rs 85.
Monday, June 7, 2010
DAILY NEWS ROUNDUP- JUNE 7 2010
Reliance Industries may foray into nuclear energy after being freed from a non-compete agreement with the ADAG that barred it from investing in some businesses. (ET)
Fortis Healthcare may avoid a hurried response to counter Malaysian investment fund Khazanah’s bid to acquire management control over Parkway Holdings. (BS)
Tech Mahindra to focus more on the Middle East and African market, in talks with three-four African telecom companies for large contracts. (BS)
Reliance Communications has granted an in-principle approval to the sale of 26% stake in the company to strategic or PE investors; however, it did not name any buyer or give a timeframe for the proposed sale. (BL)
AT&T is in talks with Reliance Communications to buy a shade under 15% stake. (DNA)
SBI to fix base rate around 8%. (FE)
GAIL set to start work on Dabhol-Bidadi project, To invest Rs 2,000 crore in 2010-11. (BS)
BEML plans to set up another greenfield manufacturing plant at an investment of Rs3.16bn in Bangalore. (BS)
JSW Energy plans to invest about Rs20bn in coal mine development. (BS)
Neyveli Lignite commissioned its lignite-based power plant at Barsingar, in Rajasthan. (BS)
Maytas Infra wins contract worth Rs1.85bn to build part of a metro rail network in the northern Indian city of Gurgaon. (BS)
SsangYong Motor lists six companies as its possible buyers, including M&M and the Ruia Group, of the original list of seven. (BS)
Jaiprakash Associates plans to invest around Rs100bn in the next three years to increase its annual production capacity to 50mn tons from a little over 20mn tons at present. (BS)
Bharat Forge forms joint venture with KPIT Cummins to produce a hybrid engine technology, which will hit the market in six months. (BS)
Adhunik Metaliks plans to invest Rs55.68bn in setting up a 2.2mn tons steel plant in Karnataka. (BS)
Life Insurance Corporation plans to sell its employee housing portfolio worth Rs13bn to its mortgage arm, LIC Housing Finance. (BS)
R-ADAG emerges as the preferred bidder for acquiring a controlling stake in Over-The-Counter Exchange of India from some of the exchange’s existing institutional investors. (ET)
Amtek Group forms 50:50 joint-venture with US-based American Railcar Industries to make railway wagons in Punjab. (ET)
SBI might look at raising money through a bond sale abroad during the next quarter. (ET)
Pipavav Shipyard bags Rs26bn contract to build offshore patrol vessels for the Indian Navy. (ET)
Ashok Leyland says that it has achieved 229% growth in its May sales to 6,502 units as compared to 1,977 in the same month last year. (FE)
Apollo Tyres is gearing up to supply tyres to German car maker Volkswagen in Europe. (ET)
Ashok Leyland and Nissan plan to roll out their first LCV product by mid-2011. (BS)
Welspun Corp. says it has received orders worth Rs7bn for pipes. (FE)
Shree Cement enters into a MoU with the Karnataka government to invest Rs20bn for setting up a cement unit and a power plant. (BS)
CESC acquires 100% ownership in Dhariwal Infrastructure by snapping the remaining 50% for a shade over Rs1bn. (ET)
Mastek is eyeing an acquisition in the insurance vertical in North America as well as the UK, and could spend up to US$50mn for the same. (BS)
Bhushan Steel plans to raise funds worth US$500mn from the market to finance the company’s greenfield projects. (ET)
Essar Oil plans to raise US$300mn by selling FCCBs to its promoter to part finance its expansion. (ET)
Havells India plans to undertake a rebranding exercise in Mexico to introduce products under its own brand. (ET)
Government has amended the Securities Contracts (Regulation) Rules to increase the non-promoter holdings in Indian companies to at least 25%. (BL)
India’s forex reserves dipped US$1.4bn in the week ended May 28, reserves are at almost US$272bn. (ET)
Value of pan India broadband spectrum has reached Rs95bn after 77 rounds of bidding. (BL)
Government to decide on free market pricing of petrol and diesel and increase the price of kerosene and LPG. (FE)
Fortis Healthcare may avoid a hurried response to counter Malaysian investment fund Khazanah’s bid to acquire management control over Parkway Holdings. (BS)
Tech Mahindra to focus more on the Middle East and African market, in talks with three-four African telecom companies for large contracts. (BS)
Reliance Communications has granted an in-principle approval to the sale of 26% stake in the company to strategic or PE investors; however, it did not name any buyer or give a timeframe for the proposed sale. (BL)
AT&T is in talks with Reliance Communications to buy a shade under 15% stake. (DNA)
SBI to fix base rate around 8%. (FE)
GAIL set to start work on Dabhol-Bidadi project, To invest Rs 2,000 crore in 2010-11. (BS)
BEML plans to set up another greenfield manufacturing plant at an investment of Rs3.16bn in Bangalore. (BS)
JSW Energy plans to invest about Rs20bn in coal mine development. (BS)
Neyveli Lignite commissioned its lignite-based power plant at Barsingar, in Rajasthan. (BS)
Maytas Infra wins contract worth Rs1.85bn to build part of a metro rail network in the northern Indian city of Gurgaon. (BS)
SsangYong Motor lists six companies as its possible buyers, including M&M and the Ruia Group, of the original list of seven. (BS)
Jaiprakash Associates plans to invest around Rs100bn in the next three years to increase its annual production capacity to 50mn tons from a little over 20mn tons at present. (BS)
Bharat Forge forms joint venture with KPIT Cummins to produce a hybrid engine technology, which will hit the market in six months. (BS)
Adhunik Metaliks plans to invest Rs55.68bn in setting up a 2.2mn tons steel plant in Karnataka. (BS)
Life Insurance Corporation plans to sell its employee housing portfolio worth Rs13bn to its mortgage arm, LIC Housing Finance. (BS)
R-ADAG emerges as the preferred bidder for acquiring a controlling stake in Over-The-Counter Exchange of India from some of the exchange’s existing institutional investors. (ET)
Amtek Group forms 50:50 joint-venture with US-based American Railcar Industries to make railway wagons in Punjab. (ET)
SBI might look at raising money through a bond sale abroad during the next quarter. (ET)
Pipavav Shipyard bags Rs26bn contract to build offshore patrol vessels for the Indian Navy. (ET)
Ashok Leyland says that it has achieved 229% growth in its May sales to 6,502 units as compared to 1,977 in the same month last year. (FE)
Apollo Tyres is gearing up to supply tyres to German car maker Volkswagen in Europe. (ET)
Ashok Leyland and Nissan plan to roll out their first LCV product by mid-2011. (BS)
Welspun Corp. says it has received orders worth Rs7bn for pipes. (FE)
Shree Cement enters into a MoU with the Karnataka government to invest Rs20bn for setting up a cement unit and a power plant. (BS)
CESC acquires 100% ownership in Dhariwal Infrastructure by snapping the remaining 50% for a shade over Rs1bn. (ET)
Mastek is eyeing an acquisition in the insurance vertical in North America as well as the UK, and could spend up to US$50mn for the same. (BS)
Bhushan Steel plans to raise funds worth US$500mn from the market to finance the company’s greenfield projects. (ET)
Essar Oil plans to raise US$300mn by selling FCCBs to its promoter to part finance its expansion. (ET)
Havells India plans to undertake a rebranding exercise in Mexico to introduce products under its own brand. (ET)
Government has amended the Securities Contracts (Regulation) Rules to increase the non-promoter holdings in Indian companies to at least 25%. (BL)
India’s forex reserves dipped US$1.4bn in the week ended May 28, reserves are at almost US$272bn. (ET)
Value of pan India broadband spectrum has reached Rs95bn after 77 rounds of bidding. (BL)
Government to decide on free market pricing of petrol and diesel and increase the price of kerosene and LPG. (FE)
MARKET MAY TUMBLE ON WEAK GLOBAL STOCKS; RCOM EYED
The market may slump after disappointing US jobs data and concerns over Hungary's debt problems rattled world stocks. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicated that the Nifty could tumble 121.50 points at the opening bell.
Among the stock specific action, shares of state-run oil market companies will be in focus ahead of the meeting of an empowered group of ministers (EGoM) today, 7 June 2010, to consider the Kirit Parikh committee recommendations on decontrol of fuel prices. The PSU OMC stocks had risen sharply over the past few days on expectations that the government may partially decontrol fuel prices. The Kirit Parikh committee had in February 2010 recommended freeing pump prices of petrol and diesel and raising kerosene prices by Rs 6 a litre and cooking gas prices by Rs 100 a cylinder.
India's second largest mobile services provider by sales Reliance Communications (RCom), burdened by debt and the cost of rolling out 3G services, said its board had agreed to sell up to 26% of the firm. RCom said its board had approved the issue of equity to strategic or private equity investors at a premium to the prevailing market price. The RCom stock had jumped 14% last week, with speculation rife that Abu Dhabi's Etisalat and South Africa's MTN could be potential partners. However, MTN had denied merger talks with the firm.
Asian stock markets tumbled on Monday, after Wall Street on Friday closed at its lowest level since February 2010, spooked by disappointing non-farms payroll data and concerns over Hungary's debt problems. The key benchmark indices in China, South Korea, Singapore, Japan, Indonesia, Hong Kong and Taiwan fell by between 1.43% to 4.01%.
US Stocks fell to their lowest close since February on Friday after May's jobs figure slammed investors already reeling from worry over another developing debt crisis, this time in Hungary. The Dow Jones Industrial Average dropped 323.31 points, or 3.15% to 9,931.97. The Standard & Poor's 500 Index lost 37.95 points, or 3.44% to 1,064.88. The Nasdaq Composite Index tumbled 83.86 points, or 3.64% to 2,219.17.
The latest data showed the US economy added fewer-than-expected jobs last month, with a large portion of those being temporary hirings for the US Census. The Labor Department said the US economy added 431,000 jobs in May 2010, far short of the 513,000 that Wall Street had expected. The unemployment rate dropped to 9.7% in May from 9.9% in April.
Europe's sovereign debt troubles could spread flared again after a Hungarian official said the country was at risk of a Greek-style crisis, driving the euro to a more than four-year low against the dollar. Hungary isn't a euro member.
Back home, the government after trading hours on Friday said all listed companies are required to maintain a minimum public float of 25%. Existing listed companies having less than 25% holding have to reach the stipulated level by an annual addition of not less than 5% to public holding, it said.
The monsoon rains were 11% below normal in the week to 2 June 2010, the weather office said on Thursday, 3 June 2010. The June-September monsoon rains hit Kerala on 31 May 2010, a day ahead of schedule. The south-west monsoon usually covers the entire country by mid-July. The weather office late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
Last month, Australia's weather bureau said the El Nino weather pattern was over. El Nino is caused by an abnormal warming of the eastern Pacific Ocean and can play havoc with weather patterns across the Asia-Pacific region.
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 also holds key.
Data last week showed business activity remained strong for India's vast services sector in May 2010, with a key gauge growing for a 13th consecutive month even as some momentum was lost over the previous month. The HSBC-Markit Business Activity Index stood at 58.2 in May 2010 from a 21-month high of 62.1 in April 2010. A reading above 50 indicates expansion. Services make up about 55% of India's $1.2 trillion economy.
HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 Indian firms, surged to a 27-month high of 59 in May 2010 from 57.2 in April 2010, bolstered by steady growth in output, new orders and employment. The rate of growth had slowed in March 2010 and April 2010.
On a flip side, another data showed that the food articles index rose 16.55% in the year to 22 May 2010, accelerating from previous week's rise of 16.23%. The primary articles index, which also includes food articles, rose 16.89%, higher than previous week's 15.90% rise. The fuel price index increased to 14.14 % versus 12.08% rise in the previous week.
India's economy grew at 8.6% in the March 2010 quarter driven by robust manufacturing sector on the back of government and consumer spending, data released by the government on Monday, 31 May 2010, showed. The growth was significantly higher than the revised 6.5% expansion in Q3 December 2009 and a 5.8% growth in Q4 March 2009. The manufacturing sector grew 16.3%, farm output rose 0.7%, mining sector expanded 14% and services increased by 8.4% in January-March 2010 quarter from a year earlier.
For the full year to March 2010, the economy expanded 7.4%, above a government forecast of 7.2%. Economic growth had slowed down to 6.7% in year ended March 2009.
The RBI 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 on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
Meanwhile, a revenue bounty for the government from the sale of telecom spectrum would help bring down fiscal deficit in the current financial year.
Investors will eye the first installment of the corporate advance tax payment which will give some clue about Q1 June 2010 corporate results. The first installment of corporate advance tax falls due on 15 June. The combined net profit of a total of 3,572 companies rose 13.7% to Rs 87,241 crore on 24.70% rise in sales to Rs 9,27,168 crore in the quarter ended March 2010 over the quarter ended March 2009.
The key benchmark indices rose for the third straight day on Friday, 4 June 2010 as Asian stocks recovered. The BSE 30-share Sensex jumped 95.36 points or 0.56% to 17,117.69 on Friday.
Foreign institutional investors (FIIs) on Friday bought stocks worth a net Rs 100.91 crore, as per provisional data from the stock exchanges. Domestic funds sold shares worth a net Rs 126.61 crore.
Euro zone debt worries caused massive outflow of foreign funds from India recently as investors shunned risk. Foreign funds sold shares worth a net Rs 185.86 crore in the first four trading sessions this month, as per data from the stock exchanges. Foreign institutional investors (FIIs) had dumped shares worth a net Rs 12071.14 crore in May 2010.
Domestic funds have bought stocks worth a net Rs 328.17 crore in the first four days this month. Domestic funds bought stocks worth a net Rs 6361.17 crore in May 2010
Among the stock specific action, shares of state-run oil market companies will be in focus ahead of the meeting of an empowered group of ministers (EGoM) today, 7 June 2010, to consider the Kirit Parikh committee recommendations on decontrol of fuel prices. The PSU OMC stocks had risen sharply over the past few days on expectations that the government may partially decontrol fuel prices. The Kirit Parikh committee had in February 2010 recommended freeing pump prices of petrol and diesel and raising kerosene prices by Rs 6 a litre and cooking gas prices by Rs 100 a cylinder.
India's second largest mobile services provider by sales Reliance Communications (RCom), burdened by debt and the cost of rolling out 3G services, said its board had agreed to sell up to 26% of the firm. RCom said its board had approved the issue of equity to strategic or private equity investors at a premium to the prevailing market price. The RCom stock had jumped 14% last week, with speculation rife that Abu Dhabi's Etisalat and South Africa's MTN could be potential partners. However, MTN had denied merger talks with the firm.
Asian stock markets tumbled on Monday, after Wall Street on Friday closed at its lowest level since February 2010, spooked by disappointing non-farms payroll data and concerns over Hungary's debt problems. The key benchmark indices in China, South Korea, Singapore, Japan, Indonesia, Hong Kong and Taiwan fell by between 1.43% to 4.01%.
US Stocks fell to their lowest close since February on Friday after May's jobs figure slammed investors already reeling from worry over another developing debt crisis, this time in Hungary. The Dow Jones Industrial Average dropped 323.31 points, or 3.15% to 9,931.97. The Standard & Poor's 500 Index lost 37.95 points, or 3.44% to 1,064.88. The Nasdaq Composite Index tumbled 83.86 points, or 3.64% to 2,219.17.
The latest data showed the US economy added fewer-than-expected jobs last month, with a large portion of those being temporary hirings for the US Census. The Labor Department said the US economy added 431,000 jobs in May 2010, far short of the 513,000 that Wall Street had expected. The unemployment rate dropped to 9.7% in May from 9.9% in April.
Europe's sovereign debt troubles could spread flared again after a Hungarian official said the country was at risk of a Greek-style crisis, driving the euro to a more than four-year low against the dollar. Hungary isn't a euro member.
Back home, the government after trading hours on Friday said all listed companies are required to maintain a minimum public float of 25%. Existing listed companies having less than 25% holding have to reach the stipulated level by an annual addition of not less than 5% to public holding, it said.
The monsoon rains were 11% below normal in the week to 2 June 2010, the weather office said on Thursday, 3 June 2010. The June-September monsoon rains hit Kerala on 31 May 2010, a day ahead of schedule. The south-west monsoon usually covers the entire country by mid-July. The weather office late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
Last month, Australia's weather bureau said the El Nino weather pattern was over. El Nino is caused by an abnormal warming of the eastern Pacific Ocean and can play havoc with weather patterns across the Asia-Pacific region.
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 also holds key.
Data last week showed business activity remained strong for India's vast services sector in May 2010, with a key gauge growing for a 13th consecutive month even as some momentum was lost over the previous month. The HSBC-Markit Business Activity Index stood at 58.2 in May 2010 from a 21-month high of 62.1 in April 2010. A reading above 50 indicates expansion. Services make up about 55% of India's $1.2 trillion economy.
HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 Indian firms, surged to a 27-month high of 59 in May 2010 from 57.2 in April 2010, bolstered by steady growth in output, new orders and employment. The rate of growth had slowed in March 2010 and April 2010.
On a flip side, another data showed that the food articles index rose 16.55% in the year to 22 May 2010, accelerating from previous week's rise of 16.23%. The primary articles index, which also includes food articles, rose 16.89%, higher than previous week's 15.90% rise. The fuel price index increased to 14.14 % versus 12.08% rise in the previous week.
India's economy grew at 8.6% in the March 2010 quarter driven by robust manufacturing sector on the back of government and consumer spending, data released by the government on Monday, 31 May 2010, showed. The growth was significantly higher than the revised 6.5% expansion in Q3 December 2009 and a 5.8% growth in Q4 March 2009. The manufacturing sector grew 16.3%, farm output rose 0.7%, mining sector expanded 14% and services increased by 8.4% in January-March 2010 quarter from a year earlier.
For the full year to March 2010, the economy expanded 7.4%, above a government forecast of 7.2%. Economic growth had slowed down to 6.7% in year ended March 2009.
The RBI 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 on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
Meanwhile, a revenue bounty for the government from the sale of telecom spectrum would help bring down fiscal deficit in the current financial year.
Investors will eye the first installment of the corporate advance tax payment which will give some clue about Q1 June 2010 corporate results. The first installment of corporate advance tax falls due on 15 June. The combined net profit of a total of 3,572 companies rose 13.7% to Rs 87,241 crore on 24.70% rise in sales to Rs 9,27,168 crore in the quarter ended March 2010 over the quarter ended March 2009.
The key benchmark indices rose for the third straight day on Friday, 4 June 2010 as Asian stocks recovered. The BSE 30-share Sensex jumped 95.36 points or 0.56% to 17,117.69 on Friday.
Foreign institutional investors (FIIs) on Friday bought stocks worth a net Rs 100.91 crore, as per provisional data from the stock exchanges. Domestic funds sold shares worth a net Rs 126.61 crore.
Euro zone debt worries caused massive outflow of foreign funds from India recently as investors shunned risk. Foreign funds sold shares worth a net Rs 185.86 crore in the first four trading sessions this month, as per data from the stock exchanges. Foreign institutional investors (FIIs) had dumped shares worth a net Rs 12071.14 crore in May 2010.
Domestic funds have bought stocks worth a net Rs 328.17 crore in the first four days this month. Domestic funds bought stocks worth a net Rs 6361.17 crore in May 2010
Sunday, June 6, 2010
WEEKLY NEWSLETTER - JUNE 6 2010
The coming week will see added pressure especially at start. The US markets could well be on their way down again as the government's monthly jobs report has fallen short of expectations. Indices are struggling to break out convincingly from their resistance zones. There appears no clarity for now on the direction of the market though the fear factor seems to dominate. Weigh your options and take a call on individual stocks rather than betting on the market as a whole.
This week saw the indices falling below their 200-DMA initially. A freak trade in Reliance and a crash in the overall market on Tuesday had the bulls bruised. Fortunately the remaining days saw some pull back though with the usual intra-day gyrations. Monsoon arrived in Kerala, but uncertainty persists over itsprogress, which are adding to the market’s woes. India grew faster than expected in fiscal year 2010, March quarter GDP growth came in at 8.6%. Impressive monthly auto sales numbers boosted the auto stocks. FMCG stocks attracted buying interest following positive news flow across the sector. Volatility in the markets drove investor’s attention towards defensive pharma space. Finally, the NSE Nifty was up by 1.4% and BSE Sensex was up 1.5%
This week saw the indices falling below their 200-DMA initially. A freak trade in Reliance and a crash in the overall market on Tuesday had the bulls bruised. Fortunately the remaining days saw some pull back though with the usual intra-day gyrations. Monsoon arrived in Kerala, but uncertainty persists over itsprogress, which are adding to the market’s woes. India grew faster than expected in fiscal year 2010, March quarter GDP growth came in at 8.6%. Impressive monthly auto sales numbers boosted the auto stocks. FMCG stocks attracted buying interest following positive news flow across the sector. Volatility in the markets drove investor’s attention towards defensive pharma space. Finally, the NSE Nifty was up by 1.4% and BSE Sensex was up 1.5%
Friday, June 4, 2010
INTRADAY CALL: JUNE 4 2010
2) BUY HERO HONDA:-----DAY TRADERS CAN CONSIDER TO BUY THIS STOCK AROUND AT 1980.00 STOPLOSS 1965.50 TARGET 2015/2035.
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.
FLAT TO NEGETIVE START LIKELY ON ASIAN CUES
Headlines for the day:
R-Power puts Maharashtra gas-based unit on fast track
HUL board to consider share buyback
Thermax signs technology transfer pact with Lambion
Events for the day:
Major corporate action
Ex-date for dividend of Torrent Pharma and LG Balakrishnan
For more events, log on to Sharekhan.com
Pre-market report
Global signals
European shares rose to a two-week closing high on Thursday as oil companies bounced, helped by a surge in the crude price, and growth in the Euro zone services sector boosted investor sentiment.
US Stocks rose on Thursday, led by a late-day surge in technology shares as investors geared up for a strong unemployment report on Friday. Stocks seesawed throughout the session, shifting between optimism and pessimism on a variety of factors, including technical resistance at the S&P 200-day moving average, the euro's weakness, and supportive labor market data.
Asian stock markets were trading marginally down. SGX Nifty was trading 23 points down.
Indian Indices
It was a day of cheer on Dalal Street yesterday. The markets started on a positive note and surged forward, showing no hesitation throughout the session and finally clocking 2% gains. US pending home sales for the month of April 2010 went up 6% as against expected increase of 5%. This news too pushed the other markets higher. The Nifty closed above the 5100 mark while the Sensex ended above 17000 on the back of strong global cues.
Technology shares, among the biggest beneficiaries of an economic recovery, led the US stocks rally. Today, the Asian markets were trading with marginal losses. Investors are expected to remain on the sidelines today, waiting for US employment data. Investors are expected to take a breather after posting huge gains. Following the path led by the Asian markets, the domestic markets are set to witness a flat to negative start.
In the coming day’s, monsoon would have a bearing on the market sentiment. One has to see how it develops and progresses to other parts of the country.
Commodity cues
In the commodity space, the crude oil prices rose on Thursday, with the Nymex light crude oil for the July series rose by $1.75 per barrel, whereas in the metals space, the Comex Gold for the July series down by $12.30 to a troy ounce and the Comex Silver for the July series was declined by $0.38 to a troy ounce.
Daily trend of FII/MF investment in equities
On June 03, 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs127.60 crore, whereas the domestic mutual funds, on June 01, 2010, were the net sellers of the stocks to the tune of Rs13.30 crore.
R-Power puts Maharashtra gas-based unit on fast track
HUL board to consider share buyback
Thermax signs technology transfer pact with Lambion
Events for the day:
Major corporate action
Ex-date for dividend of Torrent Pharma and LG Balakrishnan
For more events, log on to Sharekhan.com
Pre-market report
Global signals
European shares rose to a two-week closing high on Thursday as oil companies bounced, helped by a surge in the crude price, and growth in the Euro zone services sector boosted investor sentiment.
US Stocks rose on Thursday, led by a late-day surge in technology shares as investors geared up for a strong unemployment report on Friday. Stocks seesawed throughout the session, shifting between optimism and pessimism on a variety of factors, including technical resistance at the S&P 200-day moving average, the euro's weakness, and supportive labor market data.
Asian stock markets were trading marginally down. SGX Nifty was trading 23 points down.
Indian Indices
It was a day of cheer on Dalal Street yesterday. The markets started on a positive note and surged forward, showing no hesitation throughout the session and finally clocking 2% gains. US pending home sales for the month of April 2010 went up 6% as against expected increase of 5%. This news too pushed the other markets higher. The Nifty closed above the 5100 mark while the Sensex ended above 17000 on the back of strong global cues.
Technology shares, among the biggest beneficiaries of an economic recovery, led the US stocks rally. Today, the Asian markets were trading with marginal losses. Investors are expected to remain on the sidelines today, waiting for US employment data. Investors are expected to take a breather after posting huge gains. Following the path led by the Asian markets, the domestic markets are set to witness a flat to negative start.
In the coming day’s, monsoon would have a bearing on the market sentiment. One has to see how it develops and progresses to other parts of the country.
Commodity cues
In the commodity space, the crude oil prices rose on Thursday, with the Nymex light crude oil for the July series rose by $1.75 per barrel, whereas in the metals space, the Comex Gold for the July series down by $12.30 to a troy ounce and the Comex Silver for the July series was declined by $0.38 to a troy ounce.
Daily trend of FII/MF investment in equities
On June 03, 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs127.60 crore, whereas the domestic mutual funds, on June 01, 2010, were the net sellers of the stocks to the tune of Rs13.30 crore.
DAILY NEWS ROUNDUP- JUNE 4 2010
SBI is preparing a billion dollar war chest for Africa. (ET)
Infosys is looking for smaller, back office and consulting firm in Germany and France. (ET)
ONGC and Oil India get freedom to price natural gas. (BS)
Reliance Power plans to set-up a 4,000mw gas based power plant in Maharashtra with an investment of Rs150bn. (BS)
Daimler, Maruti Suzuki and M&M are set to lead an estimated US$30bn investment in the next four years. (ET)
MTN group has denied talks with RCom for a merger. (BS)
Hindustan Unilever to consider buy-back proposal. (BS)
Aurobindo Pharma gets US FDA nod for Ceftazidime injections. (BS)
United Phosphorus buys global fungicide business of US based Du-Pont. (BL)
SpiceJet international plans are delayed by three months. (BS)
Moser Baer plans to add 30-40mw of photovoltaic capacity by March 2011. (BS)
GMR Energy to raise Rs4.65bn for its energy expansion plans. (BS)
Godrej Consumer Products is planning a QIP issue to raise Rs6-7bn to fund proposed acquisitions. (BS)
NMDC plans Rs92bn steel plant in Karnataka. (BL)
BEML to set-up Rs3.16bn facility in Bangalore for its aerospace related business. (BL)
Renuka Sugar to re-negotiate Equipav deal. (BL)
Adani Power to invest Rs5bn in solar project. (BL)
The government plans to update the draft legislation on mining to unequivocally establish it as the owner of all the natural resources. (ET)
Petrol, diesel price may rise Rs3.5/litre. (BS)
Monsoon rains were 11% below normal in the week to June 2nd says IMD. (BS)
Food inflation rose to 16.55% for the week ended May 22’ 2010. (BS)
DoT to waive off spectrum charges for Defence Ministry. (ET)
Finance Ministry is seeking veto power in proposed council of finance ministers on the goods and service tax. (ET)
Infosys is looking for smaller, back office and consulting firm in Germany and France. (ET)
ONGC and Oil India get freedom to price natural gas. (BS)
Reliance Power plans to set-up a 4,000mw gas based power plant in Maharashtra with an investment of Rs150bn. (BS)
Daimler, Maruti Suzuki and M&M are set to lead an estimated US$30bn investment in the next four years. (ET)
MTN group has denied talks with RCom for a merger. (BS)
Hindustan Unilever to consider buy-back proposal. (BS)
Aurobindo Pharma gets US FDA nod for Ceftazidime injections. (BS)
United Phosphorus buys global fungicide business of US based Du-Pont. (BL)
SpiceJet international plans are delayed by three months. (BS)
Moser Baer plans to add 30-40mw of photovoltaic capacity by March 2011. (BS)
GMR Energy to raise Rs4.65bn for its energy expansion plans. (BS)
Godrej Consumer Products is planning a QIP issue to raise Rs6-7bn to fund proposed acquisitions. (BS)
NMDC plans Rs92bn steel plant in Karnataka. (BL)
BEML to set-up Rs3.16bn facility in Bangalore for its aerospace related business. (BL)
Renuka Sugar to re-negotiate Equipav deal. (BL)
Adani Power to invest Rs5bn in solar project. (BL)
The government plans to update the draft legislation on mining to unequivocally establish it as the owner of all the natural resources. (ET)
Petrol, diesel price may rise Rs3.5/litre. (BS)
Monsoon rains were 11% below normal in the week to June 2nd says IMD. (BS)
Food inflation rose to 16.55% for the week ended May 22’ 2010. (BS)
DoT to waive off spectrum charges for Defence Ministry. (ET)
Finance Ministry is seeking veto power in proposed council of finance ministers on the goods and service tax. (ET)
Thursday, June 3, 2010
GREY MARKET PREMIUMS - JUNE 3 2010
Company Name | Offer Price (Rs.) | Premium (Rs.) |
Standard Chartered PLC | 104 | Discount |
Fatpipe Networks India Ltd. | 82 to 85 | 2.50 to 3 |
GAP-UP OPENING SEEN; INFLATION NOS EYED
Headlines for the day:
GTL eyes RCom in tower tango
Renuka Sugars seals revised Equipav deal, for lower price
Sun Pharmaceutical turns down Taro's offer
Events for the day:
Major corporate action
Weekly inflation to be announced today
Ex-date for dividend of Indiabulls Financial and Indiabulls Securities
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European stock markets bounced back from early lows Wednesday following a strong showing on Wall Street where investors cheered upbeat US housing data.
The US stocks rallied on Wednesday as investors rushed back into beaten-down shares, led by energy, which bore the brunt of the sell-off a day earlier.
In today's trade, the Asian markets were trading higher, except Shanghai Composite that was trading lower by 0.22%. SGX Nifty was trading 56 points higher.
Indian Indices
After a strong comeback yesterday where the Nifty closed above its significant level of 5000, today the domestic markets are expected to open strong with a positive bias following its global peers (with Europe being an exception). The US stocks recorded heavy gains yesterday with all the major indices clocking gains of over 2.5% each. After a day of heavy sell-off on Tuesday, the investors in the US responded to the better-than-expected economic data, which increased investors confidence and rebounce in the energy stocks. However, going into the session, the inflation announcement may keep the market volatile.
Talking about the foreign institutional investors (FIIs), they have been the net buyers over the last few days in the Indian equities as the data that were announced recently about the upbeat gross domestic product (GDP), strong auto sales numbers and cement despatches for the month of May and signs of cooling of the fiscal deficit front were quite encouraging. Secondly, the emerging markets threw better growth opportunities and with the sustained tensions in the developed economies of the Europe and the US, investment in the emerging economies were more attractive for the FIIs over a longer period. Though concerns over the Euro zone causing the risk aversion for the global investors and weakening the sentiments, may continue playing a spoil sport for the markets for a while.
With the governments review of the oil prices round the corner, the oil and gas stocks will be in the focus over the next few sessions.
Commodity cues
In the commodity space, the crude oil prices erased losses Wednesday as stocks turned higher, led by a jump in energy shares, with the Nymex light crude oil for the July series rose by $0.28 per barrel, whereas in the metals space, the Comex Gold for the July series down by $4.20 to a troy ounce and the Comex Silver for the July series was declined by $0.24 to a troy ounce.
Daily trend of FII/MF investment in equities
On June 02, 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs472.80 crore, whereas the domestic mutual funds, on June 01, 2010, were the net sellers of the stocks to the tune of Rs13.30 crore.
GTL eyes RCom in tower tango
Renuka Sugars seals revised Equipav deal, for lower price
Sun Pharmaceutical turns down Taro's offer
Events for the day:
Major corporate action
Weekly inflation to be announced today
Ex-date for dividend of Indiabulls Financial and Indiabulls Securities
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European stock markets bounced back from early lows Wednesday following a strong showing on Wall Street where investors cheered upbeat US housing data.
The US stocks rallied on Wednesday as investors rushed back into beaten-down shares, led by energy, which bore the brunt of the sell-off a day earlier.
In today's trade, the Asian markets were trading higher, except Shanghai Composite that was trading lower by 0.22%. SGX Nifty was trading 56 points higher.
Indian Indices
After a strong comeback yesterday where the Nifty closed above its significant level of 5000, today the domestic markets are expected to open strong with a positive bias following its global peers (with Europe being an exception). The US stocks recorded heavy gains yesterday with all the major indices clocking gains of over 2.5% each. After a day of heavy sell-off on Tuesday, the investors in the US responded to the better-than-expected economic data, which increased investors confidence and rebounce in the energy stocks. However, going into the session, the inflation announcement may keep the market volatile.
Talking about the foreign institutional investors (FIIs), they have been the net buyers over the last few days in the Indian equities as the data that were announced recently about the upbeat gross domestic product (GDP), strong auto sales numbers and cement despatches for the month of May and signs of cooling of the fiscal deficit front were quite encouraging. Secondly, the emerging markets threw better growth opportunities and with the sustained tensions in the developed economies of the Europe and the US, investment in the emerging economies were more attractive for the FIIs over a longer period. Though concerns over the Euro zone causing the risk aversion for the global investors and weakening the sentiments, may continue playing a spoil sport for the markets for a while.
With the governments review of the oil prices round the corner, the oil and gas stocks will be in the focus over the next few sessions.
Commodity cues
In the commodity space, the crude oil prices erased losses Wednesday as stocks turned higher, led by a jump in energy shares, with the Nymex light crude oil for the July series rose by $0.28 per barrel, whereas in the metals space, the Comex Gold for the July series down by $4.20 to a troy ounce and the Comex Silver for the July series was declined by $0.24 to a troy ounce.
Daily trend of FII/MF investment in equities
On June 02, 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs472.80 crore, whereas the domestic mutual funds, on June 01, 2010, were the net sellers of the stocks to the tune of Rs13.30 crore.
DAILY NEWS ROUNDUP- JUNE 3 2010
RCOM to give up strategic stake to fund 3G foray. (ET)
NTPC is set to acquire controlling interest in a 720mn tone coal field in Australia in a deal valued at US$1-1.5bn, which will enable it to fire about 3,500MW of power capacity. (ET)
RIL revives plan to build a multi-billion-dollar chemical plant. (ET)
Sun Pharma rejects Guggenheim Partners’ US$215mn offer for Taro stake. (ET)
SASOL, the largest producer of motor fuel made from coal, plans to spend US$10bn in India in partnership with Tata Group on a block awarded last year. (ET)
RIL’s hunt for more hydrocarbons on India's East coast could slow as the company's drilling programme in the region is facing delays due to ‘unresolved mechanical' issue in the rig hired from Transocean. (BL)
Tata Motors inaugurated its Nano manufacturing plant at Sanand in Gujarat. (BS)
Ranbaxy is recalling all unused stock of one batch of its drug Gabapentin from the UK. (ET)
THE oil & gas sector regulator has asked Gail Gas to refrain from setting-up gas filling stations at places it has not yet approved. (ET)
MMTC, National Fertilisers and RCF are the latest companies to join the Government divestment list. (ET)
GMR Energy has raised Rs3.5bn from IDFC Group for a minority stake. (ET)
The Hinduja Group plans to raise nearly US$1bn by an IPO of its lubricant arm Petromin in Saudi Arabia this year. (ET)
JSW Steel to raise about Rs21bn through an issue of warrants to promoters on a preferential basis to help cut debt. (ET)
Aditya Birla Minacs, the BPO arm of the Aditya Birla Group, has acquired the US-based Bureau of Collections Recovery. (ET)
FMCG major Godrej Consumer Products has acquired Argentinian hair care company Argencos. (ET)
CERC has approved PowerGrid Corporation’s plan to set up nine High Capacity Power Transmission Corridors costing Rs581bn. (BS)
GTL is believed to be in talks with Reliance Infratel, the telecom tower arm of RCom, for a strategic partnership. (BS)
Ashok Leyland and Nissan, who have joined hands for manufacturing light commercial vehicles (LCV), are planning to roll out their first product by mid-2011. (BS)
Punjab Tractors is increasing production capacity of its ‘Swaraj' brand of tractors by 30% this fiscal. (BL)
Shree Renuka Sugars is negotiating a 25-28% reduction in the acquisition price for its proposed Equipav buyout. (ET)
Infotech Enterprises has signed a long-term master service agreement with Norway’s drilling and well services company Seawell AS to provide engineering support services. (BS)
The pan-India bid for Broadband Wireless Access (BWA) spectrum touched Rs 86bn on Wednesday translating into revenues of Rs258bn for Government from the sale of three slots. (ET)
The Union Finance Ministry plans to define any equity placement prior to an IPO as promoter shareholding for the purpose of calculating minimum public float. (BS)
According to chief Statistician Pronab Sen, India’s economy might accelerate to 9% in Q1 on strong consumer demand. (BS)
According to data released by the RBI, bank credit went up by Rs24bn to Rs 32,302bn at the end of May 14, a yoy increase of 18%. (BS)
India’s food processing sector, which was growing at about 6% four years ago, is now expanding at nearly 15% annually, as per the Union Minister of State for food processing industries. (ET)
India’s fifth ultra mega power plant will be set up at Chhattisgarh. (ET)
Technology research firm Forrester has raised the growth forecast for Global IT Spend to an extremely healthy 9.3%. (BS)
NTPC is set to acquire controlling interest in a 720mn tone coal field in Australia in a deal valued at US$1-1.5bn, which will enable it to fire about 3,500MW of power capacity. (ET)
RIL revives plan to build a multi-billion-dollar chemical plant. (ET)
Sun Pharma rejects Guggenheim Partners’ US$215mn offer for Taro stake. (ET)
SASOL, the largest producer of motor fuel made from coal, plans to spend US$10bn in India in partnership with Tata Group on a block awarded last year. (ET)
RIL’s hunt for more hydrocarbons on India's East coast could slow as the company's drilling programme in the region is facing delays due to ‘unresolved mechanical' issue in the rig hired from Transocean. (BL)
Tata Motors inaugurated its Nano manufacturing plant at Sanand in Gujarat. (BS)
Ranbaxy is recalling all unused stock of one batch of its drug Gabapentin from the UK. (ET)
THE oil & gas sector regulator has asked Gail Gas to refrain from setting-up gas filling stations at places it has not yet approved. (ET)
MMTC, National Fertilisers and RCF are the latest companies to join the Government divestment list. (ET)
GMR Energy has raised Rs3.5bn from IDFC Group for a minority stake. (ET)
The Hinduja Group plans to raise nearly US$1bn by an IPO of its lubricant arm Petromin in Saudi Arabia this year. (ET)
JSW Steel to raise about Rs21bn through an issue of warrants to promoters on a preferential basis to help cut debt. (ET)
Aditya Birla Minacs, the BPO arm of the Aditya Birla Group, has acquired the US-based Bureau of Collections Recovery. (ET)
FMCG major Godrej Consumer Products has acquired Argentinian hair care company Argencos. (ET)
CERC has approved PowerGrid Corporation’s plan to set up nine High Capacity Power Transmission Corridors costing Rs581bn. (BS)
GTL is believed to be in talks with Reliance Infratel, the telecom tower arm of RCom, for a strategic partnership. (BS)
Ashok Leyland and Nissan, who have joined hands for manufacturing light commercial vehicles (LCV), are planning to roll out their first product by mid-2011. (BS)
Punjab Tractors is increasing production capacity of its ‘Swaraj' brand of tractors by 30% this fiscal. (BL)
Shree Renuka Sugars is negotiating a 25-28% reduction in the acquisition price for its proposed Equipav buyout. (ET)
Infotech Enterprises has signed a long-term master service agreement with Norway’s drilling and well services company Seawell AS to provide engineering support services. (BS)
The pan-India bid for Broadband Wireless Access (BWA) spectrum touched Rs 86bn on Wednesday translating into revenues of Rs258bn for Government from the sale of three slots. (ET)
The Union Finance Ministry plans to define any equity placement prior to an IPO as promoter shareholding for the purpose of calculating minimum public float. (BS)
According to chief Statistician Pronab Sen, India’s economy might accelerate to 9% in Q1 on strong consumer demand. (BS)
According to data released by the RBI, bank credit went up by Rs24bn to Rs 32,302bn at the end of May 14, a yoy increase of 18%. (BS)
India’s food processing sector, which was growing at about 6% four years ago, is now expanding at nearly 15% annually, as per the Union Minister of State for food processing industries. (ET)
India’s fifth ultra mega power plant will be set up at Chhattisgarh. (ET)
Technology research firm Forrester has raised the growth forecast for Global IT Spend to an extremely healthy 9.3%. (BS)
Wednesday, June 2, 2010
FREE CALL:- MRPL
Investors with short-term trading perspective can consider selling the stock of Mangalore Refinery and Petrochemicals Ltd (MRPL). Since June 2009 high of Rs 102, the stock has been on an intermediate-term downtrend. In April 2010, the stock encountered significant resistance around Rs 84 and its downtrend accelerated thereafter. It has been on a medium-term downtrend too since April. The stock conclusively broke through its important long-term support level of Rs 70 during the third week of May by tumbling almost six per cent. At present, this support level has turned into a key resistance level for the stock. It is trading well below its 21 and 50-day moving averages. The daily relative strength index has re-entered into the bearish zone from the neutral region, whereas the weekly RSI is featuring in the bearish zone. Both daily and weekly moving average convergence and divergence indicators are hovering in the negative territory. These facts reinforce bearish sentiment on the stock. Our short-term forecast is bearish. We expect the stock to decline further until it hits our price target of Rs 63 in the upcoming sessions. Short-term traders can, hence, sell the stock with the stop at Rs 69.
Tuesday, June 1, 2010
DAILY NEWS ROUNDUP- JUNE 1 2010
M&M makes bid to buy South Korea’s bankrupt Ssangyong Motor Corp. (ET)
Reliance Industries made fifth oil discovery in exploration block CB-ONN-2003/1, located in the Cambay Basin, about 130 km from Ahmedabad. (BS)
Reliance Power to buy three gas-based power plants from group firm Reliance Infrastructure for an enterprise value of Rs10.95bn. (ET)
Amtek Auto has acquired a 26.3% stake in group firm Amtek India from the promoters in a deal worth Rs2.15bn to consolidate business under one flagship company. (ET)
ADAG scales up stake to 15.03% in multiplex chain operator Fame India. (ET)
US Exim Bank may extend credit lines to Spicejet, for its maiden purchase of Boeing aircraft. (ET)
City Union Bank to raise Rs 1,000 cr through QIP route. (BS)
HDIL plans to launch 4-6mn square feet of residential projects in the current financial year. (BS)
Ahluwalia Contracts is looking for acquisition or tie-up with a specialised construction firm to help it become an integrated urban infrastructure company. (BS)
Essar Group plans to buy majority stake in AGC Networks from Avaya of the US for US$$44.5mn. (BS)
Dewan Housing Finance raised Rs5bn through a combination of QIP and preferential allotment of equity shares. (BS)
Uttam Galva Steel plans to commission the Wardha unit by June-end. (BS)
Alstom-Schneider plans to make an open offer to acquire 20% additional stake in Areva T&D India. (BS)
SAIL has hinted at a reduction in prices in line with the downward trend overseas. (DNA)
GTL likely to take 26% stake in Qualcomm's BWA foray. (BS)
Kingfisher Airlines repays 40% of its overdue fuel bill and agreed to give bank guarantee as insurance against default on future jet fuel purchases. (ET)
Magma Fincorp expects regulatory clearance for its general insurance venture with a Germany based company during this year. (ET)
Core sector industries expanded by 5.1% in April, a drop from the healthy 7.2% growth in March. (ET)
Foreign exchange reserves up by US$64mn to US$273bn for the week ending May 21. (BL)
Sugarcane production is likely to increase by 10% to over 300mn tons in the 2010-11 crop year. (BS)
The electrical equipment industry clocks 11.25% growth in 2009-10 compared to this, the industry grew only 2.73% last year. (BS)
DoT asked the finance ministry to give defence forces a waiver of about Rs100bn on spectrum charges. (BS)
Value of pan India broadband spectrum has reached Rs52bn at the end of the fourth day of bidding. (BL)
Reliance Industries made fifth oil discovery in exploration block CB-ONN-2003/1, located in the Cambay Basin, about 130 km from Ahmedabad. (BS)
Reliance Power to buy three gas-based power plants from group firm Reliance Infrastructure for an enterprise value of Rs10.95bn. (ET)
Amtek Auto has acquired a 26.3% stake in group firm Amtek India from the promoters in a deal worth Rs2.15bn to consolidate business under one flagship company. (ET)
ADAG scales up stake to 15.03% in multiplex chain operator Fame India. (ET)
US Exim Bank may extend credit lines to Spicejet, for its maiden purchase of Boeing aircraft. (ET)
City Union Bank to raise Rs 1,000 cr through QIP route. (BS)
HDIL plans to launch 4-6mn square feet of residential projects in the current financial year. (BS)
Ahluwalia Contracts is looking for acquisition or tie-up with a specialised construction firm to help it become an integrated urban infrastructure company. (BS)
Essar Group plans to buy majority stake in AGC Networks from Avaya of the US for US$$44.5mn. (BS)
Dewan Housing Finance raised Rs5bn through a combination of QIP and preferential allotment of equity shares. (BS)
Uttam Galva Steel plans to commission the Wardha unit by June-end. (BS)
Alstom-Schneider plans to make an open offer to acquire 20% additional stake in Areva T&D India. (BS)
SAIL has hinted at a reduction in prices in line with the downward trend overseas. (DNA)
GTL likely to take 26% stake in Qualcomm's BWA foray. (BS)
Kingfisher Airlines repays 40% of its overdue fuel bill and agreed to give bank guarantee as insurance against default on future jet fuel purchases. (ET)
Magma Fincorp expects regulatory clearance for its general insurance venture with a Germany based company during this year. (ET)
Core sector industries expanded by 5.1% in April, a drop from the healthy 7.2% growth in March. (ET)
Foreign exchange reserves up by US$64mn to US$273bn for the week ending May 21. (BL)
Sugarcane production is likely to increase by 10% to over 300mn tons in the 2010-11 crop year. (BS)
The electrical equipment industry clocks 11.25% growth in 2009-10 compared to this, the industry grew only 2.73% last year. (BS)
DoT asked the finance ministry to give defence forces a waiver of about Rs100bn on spectrum charges. (BS)
Value of pan India broadband spectrum has reached Rs52bn at the end of the fourth day of bidding. (BL)
CLUELESS MARKET TO DRIFT!
Into each life some rain must fall. – Henry Longfellow.
Monsoon has arrived in Kerala, but uncertainty persists over its progress. Last year, the kharif farm output was badly hit by dismal rains, though there was some improvement during the rabi season. The Indian economy held up pretty well in FY10 in the face of the global downturn and disappointing monsoon. The strong show could partly be attributed to Government stimulus and partly to the low base of H2 FY09. The Government is confident of 8.5% growth in FY11. That could be a touch ambitious given the emergence of a few headwinds.
High inflation, sluggish private consumption and a softening stimulus are some of key concerns. Interest rates will also head north though at a gradual pace. Exports could be hit by subdued global growth and the European debt crisis. One also has to see how fund flows play out. Still, positives outweigh the negatives for India.
We expect the key indices to open in red. Asian markets are clueless as Wall Street was shut overnight. European markets managed slim gains in a quiet session. The trend is likely to be choppy and rangebound. The NSE Nifty may consolidate between 4950 and 5120. It will find support at 4800 in case of a fresh selloff.
FIIs were net buyers of Rs5.86bn in the cash segment on Monday on a provisional basis, according to the NSE data. The local institutions were also net buyers at Rs737.7mn on the same day. In the F&O segment, the foreign funds were net buyers of Rs10.31bn.
Beginning of the new month means that we will get fresh manufacturing PMI data from across the globe. This particular data has been holding up well and may help restore investor confidence. Among the other data points to watch out for will be the monthly auto sales and the US employment report later in the week.
Stock markets in Japan, South Korea and Australia are all lower in early trading today, as Wall Street was closed for a holiday on Monday. Markets were also closed in the UK. Sentiment was dented by concerns that the Chinese economy may be slowing.
Chinese manufacturing expanded at a slower pace in May, adding to signs that growth may moderate in the world’s third-biggest economy.
The MSCI Asia Pacific Index declined 0.4% to 113.05 as of 10:37 a.m. in Tokyo, with more than two stocks gaining for each that fell.
Japan’s Nikkei 225 Stock Average lost 0.7% before a meeting between Prime Minister Yukio Hatoyama and Ichiro Ozawa, secretary-general of the ruling party, to discuss the party’s future. Hatoyama pledged appropriate action in the face of plunging approval ratings. Three polls released on May 30 showed Prime Minister Hatoyama’s rating at or below 20% and six in 10 voters think he should quit.
China’s Shanghai Composite Index lost 0.6% after a purchasing managers’ index showed the country’s manufacturing industry expanded at a slower pace in May. A newspaper backed by China's National Bureau of Statistics said that the country's official purchasing managers index was at 53.9 in May, falling from 55.7 in April.
Australia’s S&P/ASX 200 Index dropped 0.6%, while the Kospi Index declined 0.4% in Seoul.
Futures on the Standard & Poor’s 500 Index fell 0.7%, signaling a decline in US markets when they resume trading today after a holiday yesterday.
Exporters in Japan declined as the yen strengthened to 111.59 per euro today from 112.59 at the 3 p.m. close of stock trading in Tokyo yesterday, while appreciating to 90.99 per dollar from 91.52.
Asian markets were also focusing on the Reserve Bank of Australia's rate-setting decision with economists widely expecting the cash rate to be held steady at 4.50%.
In foreign exchange markets, the euro was lower against the US dollar and the yen in thin trading, partly weighed by lower Asian stocks. Traders said comments by the European Central Bank board member Christian Noyer also weighed on the euro and other currencies such as the Australian dollar.
July Nymex crude oil futures were up 50 cents at $74.47 per barrel.
German stocks outperformed other European rivals in the first reaction to a downgrade of Spain by Fitch Ratings.
The Stoxx Europe 600 finished with a rise of 0.3% to 244.79, led by automobile makers and technology firms. Shares of Mercedes-Benz maker Daimler AG rose 1.5% and shares of business software giant SAP rose 1.7%, as the German DAX finished with a rise of 0.3% to 5,964.33.
European stocks also got a lift from comments from Federal Reserve Bank of Chicago President Charles Evans, who said that Europe's debt woes could prompt the US central bank to delay raising interest rates, though he played down the impact of the crisis so far.
Spain's Ibex 35 lagged the broader market, ending down 0.8% to 9,353.30. Fitch Ratings cut Spain's sovereign-debt rating to AA+ from AAA after markets in Europe closed on Friday.
Greece's ASE Composite also closed lower, down 1.2% to 1,550.78. French stocks were also weaker with the CAC-40 down 0.2% to 3,507.56.
France's budget minister, Francois Baroin, reportedly told French television station Canal Plus on Sunday that keeping the country's own AAA credit rating "is an objective that is a stretch." He said that to keep the rating, the country has to carry out planned cuts in spending and cut its deficit.
Volume was thin on Monday, with US and U.K. financial markets both closed for a holiday.
US stocks closed weaker on Friday, weighed down by Spain's downgrade by Fitch. The Dow Jones Industrial Average closed down 1.2%. It was off nearly 8% from where it stood at the end of April, marking the worst monthly drop since February 2009.
Moody's still has a AAA for Spain while S&P has a AA. Standard & Poor's had already downgraded Spain.
All of Spain's most heavily weighted stocks were weaker on Monday.
Economic sentiment in Europe, that had been steadily improving from the lows of 2009, took a dip backward in May as concerns over debt burdens complicated the outlook for euro-area growth. Consumer confidence was particularly bad in southern Europe.
On Monday, the US dollar edged higher against the euro and yen, after ending May trading in North America with its biggest rise since October 2008.
In an interview, the European Central Bank (ECB) president Jean-Claude Trichet denied that an Anglo-Saxon conspiracy was to blame for the rapidly falling euro.
BP shares slid 7.6% in Frankfurt trading. The company is now facing a never-attempted measure to control the Gulf of Mexico oil spill, after its "top kill" effort - stemming the oil by pumping heavy drilling liquids into the well - didn't work.
Over the weekend, the UK's chief treasury secretary David Laws resigned over revelations about his parliamentary expenses. Laws, a Liberal Democrat, had been charged with finding cuts to public spending to tackle Britain's fiscal deficit.
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