Weak global global stocks may pull domestic bourses lower after Tuesday's (18 May 2010)'s mild gains. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicated that the Nifty could fall 78 points at the opening bell. Foreign funds are pressing sales.
As per the provisional data from the stock exchanges, foreign institutional investors (FIIs) sold shares worth Rs 439.70 crore and domestic funds bought shares worth Rs 326.61 crore on Tuesday. FIIs have sold shares worth a net Rs 6326.62 crore so far this month, till 18 May 2010, according to data from the stock exchanges. They had bought stocks worth a net Rs 2667.35 crore last month. Domestic funds have bought stocks worth a net Rs 2509.05 crore so far this month, till 18 May 2010
Asian stocks slid on Wednesday after concerns about the sustainablility of the global economic recovery drove US shares lower. The key benchmark indices in China, Hong Kong, Japan, Indonesia, South Korea, Singapore and Taiwan fell by between 1.24% to 1.94%.
US stocks sank on Tuesday, driven lower as the strengthening of financial regulation from Wall Street to Frankfurt crushed bank stocks, adding to worries about the sustainability of the global economic recovery. The Dow Jones Industrial Average fell 114.88 points or 1.08% to 10,510.95. The Standard & Poor's 500 Index lost 16.14 points, or 1.42% to 1,120.80. The Nasdaq Composite Index shed 36.97 points, or 1.57% to 2,317.26.
Adding to the woes, Germany added to the uncertain future for banks when it suddenly moved to ban naked short selling in the stocks of the country's 10 most important financial institutions. Naked short selling occurs when an investor sells shares without borrowing them first.
Meanwhile, European finance ministers approved new regulations aimed at reining in hedge funds, the latest sign of toughened oversight of powerful players in global financial markets. The European Union also plans to limit the amount of debt, or leverage, that foreign-based funds can use to amplify their trades and profits.
Back home, the fourth quarter corporate results announced so far have been fairly encouraging. The combined net profit of a total of 2,100 companies rose 24% to Rs 54,676 crore on 25.3% rise in sales to Rs 5,54,626 crore in the quarter ended March 2010 over the quarter ended March 2009.
Pidilite Industries, Rural Electrification Corporation, Amara Raja Batteries, Agro Tech Foods among others will announce their January-March 2010 quarter results today.
Meanwhile, Bank of Rajasthan has agreed a merger with ICICI Bank. The swap ratio for the merger is set at 25 shares of ICICI Bank for every 118 shares held in Bank of Rajasthan.
On the macro front, while the headline inflation declined to 9.59% in April 2010 from 9.9% rise in March 2010, the data for February 2010 was revised upwards to 10.06% from provisional figure of 9.89%, the latest government data showed. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
The latest economic data showed industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.
The southwest monsoon has set over the Andaman and Nicobar islands and some parts of southeast Bay of Bengal. The weather 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 also holds key.
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.
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 eked out small gains in choppy trading session on Tuesday, 18 May 2010, tracking higher European stocks and gains in US index futures. The BSE 30-share Sensex rose 40.20 points or 0.24% to 16,875.76 on Tuesday.
BE A PART OF OVER 300 HNI SUBSCRIBERS FROM ALL OVER THE WORLD.
Wednesday, May 19, 2010
MARKETS LIKELY TO WEAKEN AT START
Headlines for the day:
Bank of Rajasthan to merge with ICICI Bank
Japan steel maker's plan to buy stake in JSW comes close
Steel firms prepare to ease prices on market signals
Events for the day:
Major corporate action
Mandhana Industries to be list today
Ex-date for dividend of Sterlite Industries
Results: Rural Electrification Corporation
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares rose on Tuesday, snapping two consecutive days of falls as sovereign debt fears waned after Greece received funds from the European Union to repay its immediate debt.
The US stocks sank on Tuesday, driven lower as the strengthening of financial regulation from Wall Street to Frankfurt crushed banking stocks, adding to worries about the sustainability of the global economic recovery.
In today's trade, the Asian markets were trading in red, following the Wall Street losses. At the time of writing this report, SGX Nifty was trading 77 points lower.
Indian markets
The Greece gets their first $18 billion bailout package from European Union to rescue it from the debt default, these relieved some fears in the Euro-zone, which led to positive closing in the European markets. The drop in US stocks came as the euro fell to a four-year low against the dollar on continued fear that European authorities wouldn't be able to contain the region's fiscal and debt problems. The Asian markets were lower after Wall Street dropped on Germany's decision to ban naked short selling in certain financial instruments, with the resulting drop in the euro weighing on exporters around the region. Following the negative cues set by the Asian markets, the Indian indices are set to have a gap-down start.
The scrip specific action can be seen from companies like Rural Electrification Corporation , who will be reporting its results today, and some movements in Bank of Rajasthan and ICICI Bank as they are set to merge. Also there is a new listing on the bourses today, Mandhana Industries, a vertically integrated textile and garment manufacturing company. Its issue price has been fixed at Rs130 per share, at higher end of price band of Rs120-130.
In terms of events, the latest gross domestic product data will be out on May 31, 2010. Monsoon’s progress will also have some bearing on market mood in the near term.
Commodity cues
In the commodity space, the crude oil prices slipped to a 7 month low Tuesday as the dollar neared a new four-year high against the euro, with the Nymex light crude oil for the June series decreased by $0.67 per barrel, whereas in the metals space, the Comex Gold for the June series dipped by $13.40 and the Comex Silver for the June series was up by $0.02 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On May 18, 2010, the foreign Institutional Investors (FIIs) were the net sellers of the Indian stocks to the tune of Rs1,031.60 crore, whereas the domestic mutual funds, on May 14, 2010, were the net sellers of the stocks to the tune of Rs205.50 crore.
Bank of Rajasthan to merge with ICICI Bank
Japan steel maker's plan to buy stake in JSW comes close
Steel firms prepare to ease prices on market signals
Events for the day:
Major corporate action
Mandhana Industries to be list today
Ex-date for dividend of Sterlite Industries
Results: Rural Electrification Corporation
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares rose on Tuesday, snapping two consecutive days of falls as sovereign debt fears waned after Greece received funds from the European Union to repay its immediate debt.
The US stocks sank on Tuesday, driven lower as the strengthening of financial regulation from Wall Street to Frankfurt crushed banking stocks, adding to worries about the sustainability of the global economic recovery.
In today's trade, the Asian markets were trading in red, following the Wall Street losses. At the time of writing this report, SGX Nifty was trading 77 points lower.
Indian markets
The Greece gets their first $18 billion bailout package from European Union to rescue it from the debt default, these relieved some fears in the Euro-zone, which led to positive closing in the European markets. The drop in US stocks came as the euro fell to a four-year low against the dollar on continued fear that European authorities wouldn't be able to contain the region's fiscal and debt problems. The Asian markets were lower after Wall Street dropped on Germany's decision to ban naked short selling in certain financial instruments, with the resulting drop in the euro weighing on exporters around the region. Following the negative cues set by the Asian markets, the Indian indices are set to have a gap-down start.
The scrip specific action can be seen from companies like Rural Electrification Corporation , who will be reporting its results today, and some movements in Bank of Rajasthan and ICICI Bank as they are set to merge. Also there is a new listing on the bourses today, Mandhana Industries, a vertically integrated textile and garment manufacturing company. Its issue price has been fixed at Rs130 per share, at higher end of price band of Rs120-130.
In terms of events, the latest gross domestic product data will be out on May 31, 2010. Monsoon’s progress will also have some bearing on market mood in the near term.
Commodity cues
In the commodity space, the crude oil prices slipped to a 7 month low Tuesday as the dollar neared a new four-year high against the euro, with the Nymex light crude oil for the June series decreased by $0.67 per barrel, whereas in the metals space, the Comex Gold for the June series dipped by $13.40 and the Comex Silver for the June series was up by $0.02 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On May 18, 2010, the foreign Institutional Investors (FIIs) were the net sellers of the Indian stocks to the tune of Rs1,031.60 crore, whereas the domestic mutual funds, on May 14, 2010, were the net sellers of the stocks to the tune of Rs205.50 crore.
DAILY NEWS ROUNDUP,MAY 19 ,2010
ICICI Bank will take over the crisis-ridden private sector Bank of Rajasthan and has offered a swap ratio of 1:4.72 for the deal - 25 shares of ICICI Bank for 118 shares of Bank of Rajasthan. (FE)
RIL and RNRL began informal talks for a possible gas supply agreement in line with the Supreme Court verdict. (FE)
TCS’s outsourcing contract from the UK government for managing a state-sponsored pension scheme may be among the several projects that will be put on the block by the new regime in London. (BL)
ONGC said that it has been asked by the government to pay Rs50bn to cover refiners' losses from selling fuels below cost during January-March quarter. (FE)
SAIL has urged engineering exporters to enter into long-term contracts with his organization to overcome the shortage of raw materials facing them. (BL)
BHEL's industry sector segment recorded an all-time high growth of 40% in 2009-10. (BL)
Axis Bank plans to ramp up its retail loans and contribute about 25% of the total loan portfolio within next two years. (FE)
Ranbaxy Laboratories has run into fresh trouble in Europe, primarily UK and Denmark, for not adhering to stipulated safety warning requirements. (FE)
Jet Airways has decided to expand its global footprint before joining one of the world's leading airline groupings like Star Alliance and OneWorld. (FE)
Thermax signed a technology transfer agreement with Germany’s Lambion Energy Solutions in the area of energy generation from waste. (FE)
Ashmore and PTC India are planning to pump in US$100mn into their US$1bn fund, while the rest will come from domestic and overseas financial institutions and pension funds. (FE)
Godrej Consumer Products plans to raise US$150mn via sale of shares to fund its purchase of Sara Lee Corp’s stake in an Indian venture and other acquisitions. (FE)
CPCL proposes to scrap the oldest of its three units at its Manali refinery complex and build a new, 9mtpa refinery at a cost Rs100bn. (BL)
Suzlon has received regulatory approvals for lowering the conversion price of its zero coupon FCCBs expiring in June and October 2012 respectively to Rs97.2/share. (BL)
KSK Energy Ventures announced the commencement of power generation from the first unit of 135MW of the four-unit, 540MW coal-fired power project, based in Maharashtra. (BL)
MindTree announced a partnership with Carlyle Group where it will provide IT infrastructure management and support services for Carlyle's global data centers. (FE)
Founder of MphasiS plans to set up a housing finance corporation to provide loans to low income home buyers. (ET)
Shriram EPC bagged orders worth Rs1.3bn. (FE)
Reliance MediaWorks has expanded its UK operations with the installation of new facilities enabling it to handle processing films for Hollywood, British and European producers shooting in the country. (FE)
Indian Bank plans to tap the market by September to raise up to Rs10bn to meet its Tier-II capital requirements. (BS)
Aban Offshore board to meet on May 25 to discuss about raising long-term funds through FCCB, ADR and GDR. (BS)
BL Kashyap and Sons plans to raise Rs4.5bn through share sale to qualified institutional buyers. (FE)
Renuka Sugars is renegotiating its Rs15.3bn deal to acquire Brazilian sugar and ethanol maker Equipav. (BS)
JSW Steel nearly finalises share sale agreement with Japan’s JFE, after about six months of discussion. (BS)
BSNL plans to invest around Rs148bn this financial year and a similar amount for the next financial year as part of its capex plans. (BS)
Pfizer plans to cut 18% of its workforce, at its 78 manufacturing plants over the next five years. (BS)
Kumar Mangalam Birla plans to convert preferential warrants into equity in Aditya Birla Nuvo, earlier than the deadline for conversion which ends in December 2010. (ET)
Bhushan Steel plans to drop prices by Rs2,500-3,000 from June. (BS)
Jai Balaji Industries is in talks with national and international entities for a technical tie-up or joint venture partnership. (BS)
Orient Green Power Company an associate company of Shriram EPC has filed a DRHP with SEBI for its proposed IPO. (BS)
Rain Commodities board approves the transfer of cement business from RCL (holding company) to Rain CII Carbon (India) Limited, a wholly-owned subsidiary. (BS)
AEGIS is set to acquire a 300-person back-office unit of Virginia-based Sallie Mae. (ET)
Essar Oilfields Services Ltd, a wholly owned subsidiary of Essar Shipping Ports & Logistics, won its first contract outside India valued at US$40mn from Vietsovpetro JV (VSP), an oil exploration and production company in Vietnam. (FE)
The EGoM on telecom, headed by Pranab Mukherjee, which resolved the 3G auction issue, will look into the 2G spectrum price recommendations. (FE)
In a bid to curb subsidies that threaten to derail the government’s ambitious fiscal consolidation agenda, the Centre is likely to let oil PSUs sell diesel and petrol at market prices. (FE)
An EGoM headed by the finance minister is likely to meet early next month to decide on freeing petrol and diesel prices from government control. (FE)
Day 32 of the 3G spectrum auctions saw the provisional bid amount for pan-India slot touch Rs165.3bn. (FE)
SEBI issued a model listing agreement for small and medium enterprises seeking listing on the SME exchange. (FE)
Mumbai is unlikely to see any significant increase in hotel room rates in the financial year 2010-2011 as hospitality players add more rooms in the market, bridging the gap between demand and supply. (BL)
Trai to review 2G plan wired in controversy. (ET)
RIL and RNRL began informal talks for a possible gas supply agreement in line with the Supreme Court verdict. (FE)
TCS’s outsourcing contract from the UK government for managing a state-sponsored pension scheme may be among the several projects that will be put on the block by the new regime in London. (BL)
ONGC said that it has been asked by the government to pay Rs50bn to cover refiners' losses from selling fuels below cost during January-March quarter. (FE)
SAIL has urged engineering exporters to enter into long-term contracts with his organization to overcome the shortage of raw materials facing them. (BL)
BHEL's industry sector segment recorded an all-time high growth of 40% in 2009-10. (BL)
Axis Bank plans to ramp up its retail loans and contribute about 25% of the total loan portfolio within next two years. (FE)
Ranbaxy Laboratories has run into fresh trouble in Europe, primarily UK and Denmark, for not adhering to stipulated safety warning requirements. (FE)
Jet Airways has decided to expand its global footprint before joining one of the world's leading airline groupings like Star Alliance and OneWorld. (FE)
Thermax signed a technology transfer agreement with Germany’s Lambion Energy Solutions in the area of energy generation from waste. (FE)
Ashmore and PTC India are planning to pump in US$100mn into their US$1bn fund, while the rest will come from domestic and overseas financial institutions and pension funds. (FE)
Godrej Consumer Products plans to raise US$150mn via sale of shares to fund its purchase of Sara Lee Corp’s stake in an Indian venture and other acquisitions. (FE)
CPCL proposes to scrap the oldest of its three units at its Manali refinery complex and build a new, 9mtpa refinery at a cost Rs100bn. (BL)
Suzlon has received regulatory approvals for lowering the conversion price of its zero coupon FCCBs expiring in June and October 2012 respectively to Rs97.2/share. (BL)
KSK Energy Ventures announced the commencement of power generation from the first unit of 135MW of the four-unit, 540MW coal-fired power project, based in Maharashtra. (BL)
MindTree announced a partnership with Carlyle Group where it will provide IT infrastructure management and support services for Carlyle's global data centers. (FE)
Founder of MphasiS plans to set up a housing finance corporation to provide loans to low income home buyers. (ET)
Shriram EPC bagged orders worth Rs1.3bn. (FE)
Reliance MediaWorks has expanded its UK operations with the installation of new facilities enabling it to handle processing films for Hollywood, British and European producers shooting in the country. (FE)
Indian Bank plans to tap the market by September to raise up to Rs10bn to meet its Tier-II capital requirements. (BS)
Aban Offshore board to meet on May 25 to discuss about raising long-term funds through FCCB, ADR and GDR. (BS)
BL Kashyap and Sons plans to raise Rs4.5bn through share sale to qualified institutional buyers. (FE)
Renuka Sugars is renegotiating its Rs15.3bn deal to acquire Brazilian sugar and ethanol maker Equipav. (BS)
JSW Steel nearly finalises share sale agreement with Japan’s JFE, after about six months of discussion. (BS)
BSNL plans to invest around Rs148bn this financial year and a similar amount for the next financial year as part of its capex plans. (BS)
Pfizer plans to cut 18% of its workforce, at its 78 manufacturing plants over the next five years. (BS)
Kumar Mangalam Birla plans to convert preferential warrants into equity in Aditya Birla Nuvo, earlier than the deadline for conversion which ends in December 2010. (ET)
Bhushan Steel plans to drop prices by Rs2,500-3,000 from June. (BS)
Jai Balaji Industries is in talks with national and international entities for a technical tie-up or joint venture partnership. (BS)
Orient Green Power Company an associate company of Shriram EPC has filed a DRHP with SEBI for its proposed IPO. (BS)
Rain Commodities board approves the transfer of cement business from RCL (holding company) to Rain CII Carbon (India) Limited, a wholly-owned subsidiary. (BS)
AEGIS is set to acquire a 300-person back-office unit of Virginia-based Sallie Mae. (ET)
Essar Oilfields Services Ltd, a wholly owned subsidiary of Essar Shipping Ports & Logistics, won its first contract outside India valued at US$40mn from Vietsovpetro JV (VSP), an oil exploration and production company in Vietnam. (FE)
The EGoM on telecom, headed by Pranab Mukherjee, which resolved the 3G auction issue, will look into the 2G spectrum price recommendations. (FE)
In a bid to curb subsidies that threaten to derail the government’s ambitious fiscal consolidation agenda, the Centre is likely to let oil PSUs sell diesel and petrol at market prices. (FE)
An EGoM headed by the finance minister is likely to meet early next month to decide on freeing petrol and diesel prices from government control. (FE)
Day 32 of the 3G spectrum auctions saw the provisional bid amount for pan-India slot touch Rs165.3bn. (FE)
SEBI issued a model listing agreement for small and medium enterprises seeking listing on the SME exchange. (FE)
Mumbai is unlikely to see any significant increase in hotel room rates in the financial year 2010-2011 as hospitality players add more rooms in the market, bridging the gap between demand and supply. (BL)
Trai to review 2G plan wired in controversy. (ET)
Monday, May 17, 2010
GEOMETRIC
Investors with a two-year horizon can consider taking exposure to the stock of Geometric, a software and engineering services provider, considering the improvement in the outsourcing budgets in key client segments such as automotive and Software ISV (Independent Software Vendors).
The company has a reasonably strong order-book and has managed to ramp-up on its key clients, suggesting that after a rather difficult FY-10 there could be better visibility on the revenue front. The company had managed margins well in 2009-10 by cutting manpower costs, reducing selling expenses and increasing the offshore component of revenues.
At Rs 68, the stock trades at 8 times its likely 2010-11 per share earnings. This is at a steep discount to similar players such as Persistent Systems and larger peers such as Infotech Enterprises and KPIT Cummins. Companies such as Geometric that cater to selective clients can take a hard hit in pricing and budget reductions during economic downturns, but the recovery tends to be sharper on the revenue front. Evidence of this is KPIT Cummins and Persistent Systems that operate in many of the segments that Geometric does, guiding for an industry-leading 22-25 per cent revenue growth.
The company saw its revenues fall by 14.5 per cent in FY-10 to Rs 511.5 crore; it posted net profits of Rs 46.6 crore from a loss in the previous fiscal. Forex losses of Rs 48.3 crore hit the company's profits hard in FY-09. Over a four-year period, the company has seen its revenues grow at a compounded annual rate of 31.8 per cent, while net profits grew at 21.8 per cent.
Better macro-environment
Geometric provides offshore product development, product life-cycle management and engineering services to clients. Its offerings are different from traditional IT services companies in the sense that it target audience is only two-three segments. These include software ISVs (47.5 per cent of revenues), automotive (32.5 per cent of revenues) and agricultural and construction machinery manufacturers. It counts GM, Daimler Chrysler, Caterpiller and ABB as its clients. Geometric which would be looking for increased outsourcing and offshoring from auto majors as a part of their cost-cutting measures.
A report from IDC indicates that R&D and product engineering services are set to grow from $40.1 billion in 2010 to $65.7 billion by 2013. The size of the offshore market within that is set to grow at a much faster clip from $8.9 billion in 2010 to $16.1 billion by 2013.
According to a Strategy Analytics Automotive Electronics Service report, the global market for automotive electronics systems is expected to bounce back strongly in 2010, with demand increasing 18 per cent to $147 billion from the 2009 low point. This, the report states, is a result of a forecast increase of 11 per cent in light vehicle production in 2010, alongside a shift back to larger, more electronics-rich vehicles in established markets.
These trends are suggestive of the fact that vendors such as Geometric that have existing relationship with key clients could benefit from the incremental pie.
Operational improvements
The company has a favourable geographic mix with over 63 per cent revenues coming from the US and 26 per cent from Europe. Geometric could capitalise on the revival in IT budgets in the US. . Geometric has an order book of $48.9 million, as of FY-10, to be executed over the next year, compared to just $29.5 million as of FY-09.
Over the last fiscal, the company has managed to add a $10-million-plus annual run-rate client as well as two in the $1-$5 million category. The repeat business level has also increased by 5 percentage points in FY-10 to 89.8 percent. The company's top clients have increased contribution to revenues by 5-7 percentage points.
Geometric's performance in these metrics suggests better traction in client budgets, greater client-mining ability and sound execution capabilities.
The company has also increased its offshore operations by 5 percentage points to 49.5 per cent in FY-10, which provides for low-cost revenues and an optimal cost structure. This level still leaves sufficient room for the company to enhance its offshore component.
Geometric has also indicated that it is getting into fixed-price projects, which would ensure better realisations compared to time and material billing mode.
Risks
Rupee appreciation, although a risk, is largely mitigated by the fact that Geometric has hedged 70 per cent of its inflows for FY-11 at Rs 48-49 levels. A wage hike of 13-14 per cent has been announced by the company for its offshore employees, which would affect margins in the near term. But the company has indicated that the growth in the second half of this fiscal would compensate for this.
The company has a reasonably strong order-book and has managed to ramp-up on its key clients, suggesting that after a rather difficult FY-10 there could be better visibility on the revenue front. The company had managed margins well in 2009-10 by cutting manpower costs, reducing selling expenses and increasing the offshore component of revenues.
At Rs 68, the stock trades at 8 times its likely 2010-11 per share earnings. This is at a steep discount to similar players such as Persistent Systems and larger peers such as Infotech Enterprises and KPIT Cummins. Companies such as Geometric that cater to selective clients can take a hard hit in pricing and budget reductions during economic downturns, but the recovery tends to be sharper on the revenue front. Evidence of this is KPIT Cummins and Persistent Systems that operate in many of the segments that Geometric does, guiding for an industry-leading 22-25 per cent revenue growth.
The company saw its revenues fall by 14.5 per cent in FY-10 to Rs 511.5 crore; it posted net profits of Rs 46.6 crore from a loss in the previous fiscal. Forex losses of Rs 48.3 crore hit the company's profits hard in FY-09. Over a four-year period, the company has seen its revenues grow at a compounded annual rate of 31.8 per cent, while net profits grew at 21.8 per cent.
Better macro-environment
Geometric provides offshore product development, product life-cycle management and engineering services to clients. Its offerings are different from traditional IT services companies in the sense that it target audience is only two-three segments. These include software ISVs (47.5 per cent of revenues), automotive (32.5 per cent of revenues) and agricultural and construction machinery manufacturers. It counts GM, Daimler Chrysler, Caterpiller and ABB as its clients. Geometric which would be looking for increased outsourcing and offshoring from auto majors as a part of their cost-cutting measures.
A report from IDC indicates that R&D and product engineering services are set to grow from $40.1 billion in 2010 to $65.7 billion by 2013. The size of the offshore market within that is set to grow at a much faster clip from $8.9 billion in 2010 to $16.1 billion by 2013.
According to a Strategy Analytics Automotive Electronics Service report, the global market for automotive electronics systems is expected to bounce back strongly in 2010, with demand increasing 18 per cent to $147 billion from the 2009 low point. This, the report states, is a result of a forecast increase of 11 per cent in light vehicle production in 2010, alongside a shift back to larger, more electronics-rich vehicles in established markets.
These trends are suggestive of the fact that vendors such as Geometric that have existing relationship with key clients could benefit from the incremental pie.
Operational improvements
The company has a favourable geographic mix with over 63 per cent revenues coming from the US and 26 per cent from Europe. Geometric could capitalise on the revival in IT budgets in the US. . Geometric has an order book of $48.9 million, as of FY-10, to be executed over the next year, compared to just $29.5 million as of FY-09.
Over the last fiscal, the company has managed to add a $10-million-plus annual run-rate client as well as two in the $1-$5 million category. The repeat business level has also increased by 5 percentage points in FY-10 to 89.8 percent. The company's top clients have increased contribution to revenues by 5-7 percentage points.
Geometric's performance in these metrics suggests better traction in client budgets, greater client-mining ability and sound execution capabilities.
The company has also increased its offshore operations by 5 percentage points to 49.5 per cent in FY-10, which provides for low-cost revenues and an optimal cost structure. This level still leaves sufficient room for the company to enhance its offshore component.
Geometric has also indicated that it is getting into fixed-price projects, which would ensure better realisations compared to time and material billing mode.
Risks
Rupee appreciation, although a risk, is largely mitigated by the fact that Geometric has hedged 70 per cent of its inflows for FY-11 at Rs 48-49 levels. A wage hike of 13-14 per cent has been announced by the company for its offshore employees, which would affect margins in the near term. But the company has indicated that the growth in the second half of this fiscal would compensate for this.
CRUDE TUMBLES
Prices sink as dollar stings
Crude oil prices ended substantially lower at Nymex on Friday, 14 May 2010. Prices fell as the dollar rose substantially and traders continued to mull over long-term implications of the European Union's rescue package for Greece and its impact on the currencies, specially on the euro. Better than expected economic data failed to charge up prices.
On Friday, crude-oil futures for light sweet crude for June delivery closed at $71.61/barrel (lower by $2.79 or 3.8%). For the week, crude shed 4.6%. For the month of April, crude rose 2.8%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is lower by 4.7%.
Prices are 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 137% 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 Friday, the euro dropped once again against the dollar and reached the lowest level since October 2008. The dollar index, which measures the strength of the dollar against a basket of six other currencies rose by 1%.
Among economic data for the day, the Commerce Department reported on Friday that U.S. retail sales rose a seasonally adjusted 0.4% to $366.4 billion in April, the seventh straight increase and the 12th gain in the past 13 months, led by strong sales at hardware stores and garden center. Excluding a 0.5% increase in auto sales, sales rose 0.4% to $303.5 billion. The figures were better than expected.
As per the report, sales were mixed across retail sectors last month, with a strong 6.9% gain at hardware stores and garden centers outweighing falling sales at mall-type stores. Sales at hardware stores had increased 7.8% in March.
In the latest weekly inventory report, the EIA reported earlier during the week an increase of 1.95 million barrels in the nation's oil inventories for last week, slightly above expectations. The biggest surprise was a decrease in gasoline inventories by 2.8 million barrels, whereas market was expecting a small increase. Stockpiles of distillates, which include diesel and heating oil, rose by 1.4 million barrels. The refinery utilization rate dropped more than expected to 88.4%. Meanwhile, inventories at Cushing, Okla., the delivery point for Nymex futures, rose by 784,000 barrels to a record high on 37 million barrels.
During the week, on Thursday, The International Energy Agency lowered by 220,000 barrels a day its forecast for global oil demand for 2010. Oil demand is estimated to grow from 2009 by 1.9%, equating to 1.6 million barrels a day, to 86.4 million barrels a day.
In contrast, earlier this week, the U.S. Energy Information Agency raised its outlook for global oil demand to 1.6 million barrels per day in 2010, slightly higher than the 1.5 million barrels-a-day projection made last month. Separately, The Organization of the Petroleum Exporting Countries had also said on Tuesday it was raising its estimate for global oil demand for 2010. OPEC expects global oil demand to grow by 950,000 barrels a day to 85.38 million barrels a day. It previously expected growth of 900,000 barrels a day.
Among other energy products on Friday, natural gas for June delivery pared down some losses to end 3 cents off, or 0.6%, to $4.31 per million British thermal units. Reformulated gasoline for June delivery declined 6 cents, or 2.9%, to $2.1308 a gallon.
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.
Crude oil prices ended substantially lower at Nymex on Friday, 14 May 2010. Prices fell as the dollar rose substantially and traders continued to mull over long-term implications of the European Union's rescue package for Greece and its impact on the currencies, specially on the euro. Better than expected economic data failed to charge up prices.
On Friday, crude-oil futures for light sweet crude for June delivery closed at $71.61/barrel (lower by $2.79 or 3.8%). For the week, crude shed 4.6%. For the month of April, crude rose 2.8%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is lower by 4.7%.
Prices are 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 137% 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 Friday, the euro dropped once again against the dollar and reached the lowest level since October 2008. The dollar index, which measures the strength of the dollar against a basket of six other currencies rose by 1%.
Among economic data for the day, the Commerce Department reported on Friday that U.S. retail sales rose a seasonally adjusted 0.4% to $366.4 billion in April, the seventh straight increase and the 12th gain in the past 13 months, led by strong sales at hardware stores and garden center. Excluding a 0.5% increase in auto sales, sales rose 0.4% to $303.5 billion. The figures were better than expected.
As per the report, sales were mixed across retail sectors last month, with a strong 6.9% gain at hardware stores and garden centers outweighing falling sales at mall-type stores. Sales at hardware stores had increased 7.8% in March.
In the latest weekly inventory report, the EIA reported earlier during the week an increase of 1.95 million barrels in the nation's oil inventories for last week, slightly above expectations. The biggest surprise was a decrease in gasoline inventories by 2.8 million barrels, whereas market was expecting a small increase. Stockpiles of distillates, which include diesel and heating oil, rose by 1.4 million barrels. The refinery utilization rate dropped more than expected to 88.4%. Meanwhile, inventories at Cushing, Okla., the delivery point for Nymex futures, rose by 784,000 barrels to a record high on 37 million barrels.
During the week, on Thursday, The International Energy Agency lowered by 220,000 barrels a day its forecast for global oil demand for 2010. Oil demand is estimated to grow from 2009 by 1.9%, equating to 1.6 million barrels a day, to 86.4 million barrels a day.
In contrast, earlier this week, the U.S. Energy Information Agency raised its outlook for global oil demand to 1.6 million barrels per day in 2010, slightly higher than the 1.5 million barrels-a-day projection made last month. Separately, The Organization of the Petroleum Exporting Countries had also said on Tuesday it was raising its estimate for global oil demand for 2010. OPEC expects global oil demand to grow by 950,000 barrels a day to 85.38 million barrels a day. It previously expected growth of 900,000 barrels a day.
Among other energy products on Friday, natural gas for June delivery pared down some losses to end 3 cents off, or 0.6%, to $4.31 per million British thermal units. Reformulated gasoline for June delivery declined 6 cents, or 2.9%, to $2.1308 a gallon.
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.
WEEKLY MARKET ANALYSIS,MAY17 2010
After a hectic trading week, the markets ended with gains, despite the near 300-point fall in the Sensex on Friday. The BSE benchmark index rallied to a high of 17,389, but closed the week with a gain of 225 points at 16,995.
Among index stocks, Mahindra & Mahindra and Tata Motors rallied 7 per cent each to Rs 523 and Rs 763, respectively. HDFC Bank, DLF, Reliance Infrastructure, Wipro, ICICI Bank and Tata Power were the other major gainers. Cipla and Bharti Airtel tumbled over 8 per cent each to Rs 313 and Rs 264, respectively. Reliance Communications, with a fall of 5.5 per cent, was the other major loser.
The markets’ failure to sustain at higher levels is a sign of concern, and with every passing day it seems the bears are tightening their grip. For the moment, it looks like the bears will continue to have the upper hand as long as the Sensex stays below 17,080
On the downside, the Sensex may revisit its recent low of 16,700, and has an outside chance of dropping all the way to 15,400 in case of extremely negative global factors. Next week, the Sensex is likely to face resistance around 17,220-17,290-17,360 and get support around 16,770-16,700-16,630.
The NSE Nifty moved in a range of 186 points — from a low of 5,027, the index surged to a high of 5,213, but finally settled with a gain of 75 points at 5,094.
The corresponding pivot level for the Nifty is 5,130. It will be advantage bears as long as the index stays below 5,130. Above this, the index may face resistance around 5,185-5,210. On the downside, the index is likely to find support around 5,020-5,000-4,980.
The medium-term (50-days) moving average of the Nifty has now crossed its short-term (20-days) moving average, which suggests bearishness in the sort term and a neutral trend in the medium to long term. The medium-term moving average is 5,219 and the short-term moving average is 5,200.
The momentum indicators, MACD, Directional index and Stochastic slow, are in sell mode. However, the strength of the directional index is below 30 per cent, which suggests the trend is rather weak. Hence, there could be whipsawn movements till we get a clear indication.
via BS
Among index stocks, Mahindra & Mahindra and Tata Motors rallied 7 per cent each to Rs 523 and Rs 763, respectively. HDFC Bank, DLF, Reliance Infrastructure, Wipro, ICICI Bank and Tata Power were the other major gainers. Cipla and Bharti Airtel tumbled over 8 per cent each to Rs 313 and Rs 264, respectively. Reliance Communications, with a fall of 5.5 per cent, was the other major loser.
The markets’ failure to sustain at higher levels is a sign of concern, and with every passing day it seems the bears are tightening their grip. For the moment, it looks like the bears will continue to have the upper hand as long as the Sensex stays below 17,080
On the downside, the Sensex may revisit its recent low of 16,700, and has an outside chance of dropping all the way to 15,400 in case of extremely negative global factors. Next week, the Sensex is likely to face resistance around 17,220-17,290-17,360 and get support around 16,770-16,700-16,630.
The NSE Nifty moved in a range of 186 points — from a low of 5,027, the index surged to a high of 5,213, but finally settled with a gain of 75 points at 5,094.
The corresponding pivot level for the Nifty is 5,130. It will be advantage bears as long as the index stays below 5,130. Above this, the index may face resistance around 5,185-5,210. On the downside, the index is likely to find support around 5,020-5,000-4,980.
The medium-term (50-days) moving average of the Nifty has now crossed its short-term (20-days) moving average, which suggests bearishness in the sort term and a neutral trend in the medium to long term. The medium-term moving average is 5,219 and the short-term moving average is 5,200.
The momentum indicators, MACD, Directional index and Stochastic slow, are in sell mode. However, the strength of the directional index is below 30 per cent, which suggests the trend is rather weak. Hence, there could be whipsawn movements till we get a clear indication.
via BS
Thursday, May 13, 2010
INTRADAY CALL, 13.05.2010
1). BUY HCL TECH:- DAY TRADERS CAN CONSIDER TO BUY THIS STOCK AROUND
@390.00 SL @384.20 TARGETS @400/405.
2) SELL BPCL:- DAY TRADERS CAN CONSIDER TO SELL THIS STOCK AROUND @546.00
SL@552.00 TARGETS @535/528.
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.
@390.00 SL @384.20 TARGETS @400/405.
2) SELL BPCL:- DAY TRADERS CAN CONSIDER TO SELL THIS STOCK AROUND @546.00
SL@552.00 TARGETS @535/528.
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.
CRUDE DROPS AGAIN
Prices drop as crude stockpiles rise more than expected
Crude oil prices ended lower at Nymex on Wednesday, 12 May 2010. More than expected build up in crude inventories for last week as reported by the energy department affected prices today. Long-term implications of the European Union's rescue package and its impact on the currencies, specially on the euro, also bothered investors and raised question about global demand for oil in coming months.
On Wednesday, crude-oil futures for light sweet crude for June delivery closed at $75.65/barrel (lower by $0.72 or 0.9%). For the month of April, crude rose 2.8%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 0.8%.
Prices are 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 143% from a December 2008 nadir. That day prices settled at $33.87 a barrel following an intraday low of $32.40.
In the latest weekly inventory report, the EIA reported today an increase of 1.95 million barrels in the nation's oil inventories for last week, slightly above expectations. The biggest surprise was a decrease in gasoline inventories by 2.8 million barrels, whereas market was expecting a small increase. Stockpiles of distillates, which include diesel and heating oil, rose by 1.4 million barrels. The refinery utilization rate dropped more than expected to 88.4%. Meanwhile, inventories at Cushing, Okla., the delivery point for Nymex futures, rose by 784,000 barrels to a record high on 37 million barrels.
A decision by the European Union and International Monetary Fund leaders to pledge financial support to the eurozone brought about a wave of buying and short covering that caused the stock markets across globe to surge in its best single-session percentage gain in more than a year on Monday, 10 May. As per plan, countries in the eurozone that face financial uncertainty will be eligible to receive some 500 billion euros from the EU and another 250 billion euros from the IMF. In addition to those measures, the European Central Bank will buy eurozone bonds from the secondary market and the Federal Reserve has reactivated swap lines with foreign institutions. At least for the time being, those efforts have eased contagion concerns that have surrounded Greece for weeks.
But traders mulled over the fact today that in the long term how much financial aid will be pledged for euro zone countries that face tenuous fiscal conditions and also the issue of how those funds will be allocated efficiently and whether recipients can remedy their underlying problems. The long-term implication of this on the euro and worries about inflation also bothered investors.
In the currency market today, the euro dropped once again against the dollar. The euro has slipped 10.6% against the dollar this year. The dollar index, which measures the strength of the dollar against a basket of six other currencies rose by 0.4%.
The International Energy Agency today lowered by 220,000 barrels a day its forecast for global oil demand for 2010. Oil demand is estimated to grow from 2009 by 1.9%, equating to 1.6 million barrels a day, to 86.4 million barrels a day.
In contrast, yesterday, the U.S. Energy Information Agency raised its outlook for global oil demand to 1.6 million barrels per day in 2010, slightly higher than the 1.5 million barrels-a-day projection made last month. Separately, The Organization of the Petroleum Exporting Countries had also said on Tuesday it was raising its estimate for global oil demand for 2010. OPEC expects global oil demand to grow by 950,000 barrels a day to 85.38 million barrels a day. It previously expected growth of 900,000 barrels a day.
Among other energy products on Wednesday, reformulated gasoline for June delivery, the most active contract, added 2 cents, or 0.7%, to settle at $2.2104 a gallon.
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 70 (2%) at Rs 3,390/barrel. Natural gas for May delivery closed at Rs 193, higher by Rs 5.6 (2.95%).
Crude oil prices ended lower at Nymex on Wednesday, 12 May 2010. More than expected build up in crude inventories for last week as reported by the energy department affected prices today. Long-term implications of the European Union's rescue package and its impact on the currencies, specially on the euro, also bothered investors and raised question about global demand for oil in coming months.
On Wednesday, crude-oil futures for light sweet crude for June delivery closed at $75.65/barrel (lower by $0.72 or 0.9%). For the month of April, crude rose 2.8%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 0.8%.
Prices are 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 143% from a December 2008 nadir. That day prices settled at $33.87 a barrel following an intraday low of $32.40.
In the latest weekly inventory report, the EIA reported today an increase of 1.95 million barrels in the nation's oil inventories for last week, slightly above expectations. The biggest surprise was a decrease in gasoline inventories by 2.8 million barrels, whereas market was expecting a small increase. Stockpiles of distillates, which include diesel and heating oil, rose by 1.4 million barrels. The refinery utilization rate dropped more than expected to 88.4%. Meanwhile, inventories at Cushing, Okla., the delivery point for Nymex futures, rose by 784,000 barrels to a record high on 37 million barrels.
A decision by the European Union and International Monetary Fund leaders to pledge financial support to the eurozone brought about a wave of buying and short covering that caused the stock markets across globe to surge in its best single-session percentage gain in more than a year on Monday, 10 May. As per plan, countries in the eurozone that face financial uncertainty will be eligible to receive some 500 billion euros from the EU and another 250 billion euros from the IMF. In addition to those measures, the European Central Bank will buy eurozone bonds from the secondary market and the Federal Reserve has reactivated swap lines with foreign institutions. At least for the time being, those efforts have eased contagion concerns that have surrounded Greece for weeks.
But traders mulled over the fact today that in the long term how much financial aid will be pledged for euro zone countries that face tenuous fiscal conditions and also the issue of how those funds will be allocated efficiently and whether recipients can remedy their underlying problems. The long-term implication of this on the euro and worries about inflation also bothered investors.
In the currency market today, the euro dropped once again against the dollar. The euro has slipped 10.6% against the dollar this year. The dollar index, which measures the strength of the dollar against a basket of six other currencies rose by 0.4%.
The International Energy Agency today lowered by 220,000 barrels a day its forecast for global oil demand for 2010. Oil demand is estimated to grow from 2009 by 1.9%, equating to 1.6 million barrels a day, to 86.4 million barrels a day.
In contrast, yesterday, the U.S. Energy Information Agency raised its outlook for global oil demand to 1.6 million barrels per day in 2010, slightly higher than the 1.5 million barrels-a-day projection made last month. Separately, The Organization of the Petroleum Exporting Countries had also said on Tuesday it was raising its estimate for global oil demand for 2010. OPEC expects global oil demand to grow by 950,000 barrels a day to 85.38 million barrels a day. It previously expected growth of 900,000 barrels a day.
Among other energy products on Wednesday, reformulated gasoline for June delivery, the most active contract, added 2 cents, or 0.7%, to settle at $2.2104 a gallon.
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 70 (2%) at Rs 3,390/barrel. Natural gas for May delivery closed at Rs 193, higher by Rs 5.6 (2.95%).
W-SHAPED RECOVERY....NIFTY REGAINS 5150
Indian markets ended with modest gains on Wednesday after a volatile day. Markets took a hit after industrial output data showed a drop in March at 13.5% from 15.1% in February. Economists had forecast a reading of ~15%. Industrial production had grown by 16.7% and 17.7% in January and December.
However, as the day progressed, "markets showed some resilience as compared to its international peers. The benchmark indices managed to stage a smart come back with the key indices managing a W-shaped recovery", says Amar Ambani, Vice President Research IIFL. Pharma, FMCG and Banking stocks were among the major gainers.
Telecom stocks were battered for a second day running after TRAI said that telecom companies will have to pay a one-time fee running into crores of rupees for holding 2G spectrum in excess of 6.2 MHz. Aggressive bids by telcos in the ongoing 3G auction has also raised concerns about the financial health of the telecom operators.
In addition, stocks like Infinite Computers shone on account of impressive earnings, while Bajaj Auto slipped despite Q4 net profit quadrupling.
The BSE Sensex advanced 54 points to end at 17,195 and NSE Nifty gained 20 points to close at 5,157. Among the 30 components of Sensex, 19 ended in the positive terrain and 11 ended in the red.
Markets in Asia ended mixed; the Nikkei in Japan was down 0.2%, Australia's S&P/ASX was up 0.5%, the Hang Seng index in Hong Kong was up 0.4% and Shanghai SE Composite was down 0.3%.
European indices were trading with mixed, the DAX in Germany was flat, the CAC 40 index in France was up 0.2% and the FTSE in the UK was down 0.4%.
Among the BSE sectoral indices, BSE Pharma index was the top gainer, the index gained 1.6% followed by BSE FMCG index up 1.5% and BSE Consumer Durables index up 1%. On the other hand, BSE Teck index was down 0.6% and BSE Power index down 0.4%. Even the Mid-Cap index ended flat and the Small-cap index fell 0.4%.
Outside the frontline indices, the big gainers in the broader market were Jubilant Org, Neyveli Lignite, Union Bank and Allahabad Bank. On the other hand, losers included Gujarat NRE, Piramal Health, Jain Irrigation and TTML.
Shares of Rural Electrification Corp. Ltd. (REC), Adani Enterprises Ltd. and Piramal Healthcare Ltd. were in demand on Wednesday after they were added to the MSCI India Index. Idea Cellular has been removed from the MSCI India index.
REC ended with smart gains, however, shares of Adani Enterprise and Piramal healthcare erased early gains and ended in the red. Idea also fell 8.2% to end at Rs54.80.
MSCI also added 51 Indian stocks in the Global Small-Cap indices while removing 12 stocks from the index.
These changes result from the May 2010 Semi-Annual Index Review and will come into effect from May 26.
Forty-two securities were added to and 45 securities were deleted from the MSCI Global Standard Indices.
Five hundred eleven securities were added to and 188 securities were deleted from the MSCI Global Small Cap Indices.
However, as the day progressed, "markets showed some resilience as compared to its international peers. The benchmark indices managed to stage a smart come back with the key indices managing a W-shaped recovery", says Amar Ambani, Vice President Research IIFL. Pharma, FMCG and Banking stocks were among the major gainers.
Telecom stocks were battered for a second day running after TRAI said that telecom companies will have to pay a one-time fee running into crores of rupees for holding 2G spectrum in excess of 6.2 MHz. Aggressive bids by telcos in the ongoing 3G auction has also raised concerns about the financial health of the telecom operators.
In addition, stocks like Infinite Computers shone on account of impressive earnings, while Bajaj Auto slipped despite Q4 net profit quadrupling.
The BSE Sensex advanced 54 points to end at 17,195 and NSE Nifty gained 20 points to close at 5,157. Among the 30 components of Sensex, 19 ended in the positive terrain and 11 ended in the red.
Markets in Asia ended mixed; the Nikkei in Japan was down 0.2%, Australia's S&P/ASX was up 0.5%, the Hang Seng index in Hong Kong was up 0.4% and Shanghai SE Composite was down 0.3%.
European indices were trading with mixed, the DAX in Germany was flat, the CAC 40 index in France was up 0.2% and the FTSE in the UK was down 0.4%.
Among the BSE sectoral indices, BSE Pharma index was the top gainer, the index gained 1.6% followed by BSE FMCG index up 1.5% and BSE Consumer Durables index up 1%. On the other hand, BSE Teck index was down 0.6% and BSE Power index down 0.4%. Even the Mid-Cap index ended flat and the Small-cap index fell 0.4%.
Outside the frontline indices, the big gainers in the broader market were Jubilant Org, Neyveli Lignite, Union Bank and Allahabad Bank. On the other hand, losers included Gujarat NRE, Piramal Health, Jain Irrigation and TTML.
Shares of Rural Electrification Corp. Ltd. (REC), Adani Enterprises Ltd. and Piramal Healthcare Ltd. were in demand on Wednesday after they were added to the MSCI India Index. Idea Cellular has been removed from the MSCI India index.
REC ended with smart gains, however, shares of Adani Enterprise and Piramal healthcare erased early gains and ended in the red. Idea also fell 8.2% to end at Rs54.80.
MSCI also added 51 Indian stocks in the Global Small-Cap indices while removing 12 stocks from the index.
These changes result from the May 2010 Semi-Annual Index Review and will come into effect from May 26.
Forty-two securities were added to and 45 securities were deleted from the MSCI Global Standard Indices.
Five hundred eleven securities were added to and 188 securities were deleted from the MSCI Global Small Cap Indices.
Tuesday, May 11, 2010
EU EMERGENCY AID LIFTS MARKETS IN GREEN
Today's major news
Modest debut for Talwalkars Better Value, the stock rises 27.03%
Pratibha Industries wins Rs100-crore project, the stock jumps 4.78%
Jubilant Organosys FY10 net profit up 39.25%, the stock closes 2.44% higher
Click here for more stories
Global signals
European stocks rebound from the last week’s sell-off on $1 trillion rescue package to stabilise the Euro agreed by global policymakers boosting investor sentiment. As of writing of this report, FTSE 100 was trading higher by 5.03%.
All the major Asian indices closed in the positive territory. SGX Nifty closed 163 points higher.
US stock futures signal strong opening on the Wall Street after falling sharply in the last week as global policymakers came up with an emergency rescue package, which aimed at preventing Greece' debt crisis from spreading through the euro zone countries.
Indian indices
What a stunning comeback for the Indian market! The market was waiting for a sigh of relief as sentiments had got disrupted due to contagion Greece’ debt worries. Last week the market was in a strong bear grip and bulls scampered for cover. But, today the bulls made an about-turn and broke its five-day losing streak as European Union and International Monetary Fund agreed to a massive rescue package to control Greece' debt crisis spreading to other Euro zone countries. This lifted the market sentiments and boosted investors’ confidence that led to a massive rally across the globe.
Taking leads from the strong Asian markets, the Sensex opened 30 points higher at 16799 and this was also its day’s low. The gains widened further and bulls continued their northward journey through out the session. The global policymakers coming up with an emergency rescue package aiming at preventing Greece' debt crisis, led the world equities to zoom and also the support from robust buying in heavyweights like Reliance Industries and ICICI Bank, realty and metal stocks helped the Sensex to reclaim its significant 17000 levels. In afternoon session, European markets opened with huge gains which lifted sentiments more and aided the Sensex to touch the day’s high of 17356 before shutting at 17330, 561 points higher. The Nifty also regained its 5100 levels and closed at 5194, up by 176 points.
Market sentiment
The market breadth was extremely positive as advancing stocks outdid trailing stocks over three times. Of the 2,966 stocks traded on the BSE, 2,266 stocks advanced, whereas only 615 stocks declined. Eighty five stocks remained unchanged.
Sectoral & stock screening
All the 13 sector indices closed higher, except BSE HC that fell marginally. BSE Realty led the gainers chart, spurted 6.17% and BSE Metal that surged 6.06%.
In ‘A’ group list: gainers were - Reliance Infrastructure topped the chart, surged by 8.49%, followed by JSW Steel up by 8.36% and IVRCL Infrastructure gained by 8.28%. Losers’ were - Cipla led the losers’ list with losses of 6.42%, followed by Reliance Natural Resources (RNRL) that fell by 4.93% and Bank of India that shed 3.74%.
Viewing volumes
Anil Dhirubhai Ambani group company and day’s biggest loser, Reliance Natural Resources saw highest trading on second straight session with over 3.35 crore shares changing hands on the BSE, followed by wind turbine major Suzlon Energy (0.59 crore shares), India’s second largest developer Unitech (0.55 crore shares), Jaiprakash Associates (0.54 crore shares) and IFCI (0.52 crore shares).
Modest debut for Talwalkars Better Value, the stock rises 27.03%
Pratibha Industries wins Rs100-crore project, the stock jumps 4.78%
Jubilant Organosys FY10 net profit up 39.25%, the stock closes 2.44% higher
Click here for more stories
Global signals
European stocks rebound from the last week’s sell-off on $1 trillion rescue package to stabilise the Euro agreed by global policymakers boosting investor sentiment. As of writing of this report, FTSE 100 was trading higher by 5.03%.
All the major Asian indices closed in the positive territory. SGX Nifty closed 163 points higher.
US stock futures signal strong opening on the Wall Street after falling sharply in the last week as global policymakers came up with an emergency rescue package, which aimed at preventing Greece' debt crisis from spreading through the euro zone countries.
Indian indices
What a stunning comeback for the Indian market! The market was waiting for a sigh of relief as sentiments had got disrupted due to contagion Greece’ debt worries. Last week the market was in a strong bear grip and bulls scampered for cover. But, today the bulls made an about-turn and broke its five-day losing streak as European Union and International Monetary Fund agreed to a massive rescue package to control Greece' debt crisis spreading to other Euro zone countries. This lifted the market sentiments and boosted investors’ confidence that led to a massive rally across the globe.
Taking leads from the strong Asian markets, the Sensex opened 30 points higher at 16799 and this was also its day’s low. The gains widened further and bulls continued their northward journey through out the session. The global policymakers coming up with an emergency rescue package aiming at preventing Greece' debt crisis, led the world equities to zoom and also the support from robust buying in heavyweights like Reliance Industries and ICICI Bank, realty and metal stocks helped the Sensex to reclaim its significant 17000 levels. In afternoon session, European markets opened with huge gains which lifted sentiments more and aided the Sensex to touch the day’s high of 17356 before shutting at 17330, 561 points higher. The Nifty also regained its 5100 levels and closed at 5194, up by 176 points.
Market sentiment
The market breadth was extremely positive as advancing stocks outdid trailing stocks over three times. Of the 2,966 stocks traded on the BSE, 2,266 stocks advanced, whereas only 615 stocks declined. Eighty five stocks remained unchanged.
Sectoral & stock screening
All the 13 sector indices closed higher, except BSE HC that fell marginally. BSE Realty led the gainers chart, spurted 6.17% and BSE Metal that surged 6.06%.
In ‘A’ group list: gainers were - Reliance Infrastructure topped the chart, surged by 8.49%, followed by JSW Steel up by 8.36% and IVRCL Infrastructure gained by 8.28%. Losers’ were - Cipla led the losers’ list with losses of 6.42%, followed by Reliance Natural Resources (RNRL) that fell by 4.93% and Bank of India that shed 3.74%.
Viewing volumes
Anil Dhirubhai Ambani group company and day’s biggest loser, Reliance Natural Resources saw highest trading on second straight session with over 3.35 crore shares changing hands on the BSE, followed by wind turbine major Suzlon Energy (0.59 crore shares), India’s second largest developer Unitech (0.55 crore shares), Jaiprakash Associates (0.54 crore shares) and IFCI (0.52 crore shares).
EQUITIES SET TO OPEN HIGHER ON EU PLAN.
Headlines for the day:
Supreme Court verdict won't affect any project of R-Infra
Tata may reject Mumbai supply order on R-Infra
Auto sales grow highest in a decade
Events for the day:
Major corporate action
Ex-date for interim dividend of GMM Pfaudler and Hikal
Results: Kotak Mahindra Bank, Ranbaxy Laboratories , Hindalco Industries
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares posted their biggest daily rise in more than 17 months on Monday after European central banks started to buy euro zone government bonds under a $1 trillion rescue package.
The US stocks racked up their biggest one-day gain in over a year on Monday as an agreement on a $1 trillion emergency rescue package from the European Union quelled fears a new credit crisis would derail European economies.
In today's trade, the Asian markets were trading in the positive territory. At the time of writing this report, SGX Nifty was trading 5 points higher.
Indian markets
The markets around the globe had made an amazing recovery from a sharp sell off last week, as relieved investors see the massive $1 trillion rescue package cobbled together by global policymakers to bail out debt-laden European Union (EU) countries.
Thee Asian markets were trading higher in their early trade, with modest gains as investors focused on the implementation of the European Union's bail out package. The Indian markets are expected to have a gap-up opening, following the track set by the global peers. Ahead through the session, markets are expected to trade in a positive bias. The foreign institutional investors (FIIs) continue to be the net sellers as the case in the entire last week on the back of profit booking.
The earnings of Kotak Mahindra Bank, Ranbaxy Laboratories and Hindalco Industries are later to be announced today — the stocks will be closely eyed by the investors.
Commodity cues
In the commodity space, the crude oil prices inched on Monday, with the Nymex light crude oil for the June series rose by $1.69 per barrel, whereas in the metals space, the Comex Gold for the June series declined by $9.60 and the Comex Silver for the June series was down by $0.10 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On May 10 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs1589.90 crore, whereas the domestic mutual funds, on May 07, 2010, were the net sellers of the stocks to the tune of Rs13.70 crore.
Supreme Court verdict won't affect any project of R-Infra
Tata may reject Mumbai supply order on R-Infra
Auto sales grow highest in a decade
Events for the day:
Major corporate action
Ex-date for interim dividend of GMM Pfaudler and Hikal
Results: Kotak Mahindra Bank, Ranbaxy Laboratories , Hindalco Industries
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares posted their biggest daily rise in more than 17 months on Monday after European central banks started to buy euro zone government bonds under a $1 trillion rescue package.
The US stocks racked up their biggest one-day gain in over a year on Monday as an agreement on a $1 trillion emergency rescue package from the European Union quelled fears a new credit crisis would derail European economies.
In today's trade, the Asian markets were trading in the positive territory. At the time of writing this report, SGX Nifty was trading 5 points higher.
Indian markets
The markets around the globe had made an amazing recovery from a sharp sell off last week, as relieved investors see the massive $1 trillion rescue package cobbled together by global policymakers to bail out debt-laden European Union (EU) countries.
Thee Asian markets were trading higher in their early trade, with modest gains as investors focused on the implementation of the European Union's bail out package. The Indian markets are expected to have a gap-up opening, following the track set by the global peers. Ahead through the session, markets are expected to trade in a positive bias. The foreign institutional investors (FIIs) continue to be the net sellers as the case in the entire last week on the back of profit booking.
The earnings of Kotak Mahindra Bank, Ranbaxy Laboratories and Hindalco Industries are later to be announced today — the stocks will be closely eyed by the investors.
Commodity cues
In the commodity space, the crude oil prices inched on Monday, with the Nymex light crude oil for the June series rose by $1.69 per barrel, whereas in the metals space, the Comex Gold for the June series declined by $9.60 and the Comex Silver for the June series was down by $0.10 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On May 10 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs1589.90 crore, whereas the domestic mutual funds, on May 07, 2010, were the net sellers of the stocks to the tune of Rs13.70 crore.
DAILY NEWS ROUNDUP -MAY 11, 2010
Vedanta Resources through its subsidiary Hindustan Zinc has acquired UK-based Anglo American Plc’s zinc business for US$1.34bn in an all-cash deal. (BS)
Fortis Healthcare will raise Rs3.8bn through issue of 22.35mn equity shares on a preferential basis to Singapore-based private equity firm GIC Special Investments Pte Ltd. (BS)
The Maharashtra government intervened with GAIL India to organise gas supply till end-June for one unit of Tata Power’s Trombay plant. (BS)
Bolivia has said that the multi-billion dollar contract it signed with Jindal Steel to develop an iron ore mine has not been rescinded, but the steel company would have to pay a penalty for not fulfilling the terms of the agreement. (BS)
Tata Power has said that it is not inclined to accept a Maharashtra government order asking it to supply around 300MW to Reliance Infrastructure, setting the stage for an unusual confrontation with the state government, reports Our Political Bureau from Mumbai. (ET)
US-based Purdue Pharma has filed a patent infringement suit against Ranbaxy, after it had applied for marketing approval of a low-cost version of Purdue’s pain relieving medicine, Oxycodone. (BS)
Radico Khaitan is 'in talks' with Britan's Diageo Plc to reduce stake in their joint venture Diageo Radico Distilleries Pvt Ltd. (FE)
Usha Martin has chalked out a Rs12bn capital expenditure program, to be invested over a period of 36 months. (BS)
Tata Teleservices has approached the communication to seek a level playing field and ending the discrimination against the company on the policy front. (ET)
Fidelity Growth Partners India, the private equity arm of Fidelity International, has taken a significant minority stake in PL Engineering, a subsidiary of Punj Lloyd. (ET)
Prithvi Information Solutions has acquired US-based Percentix, a business intelligence consulting company specialising in Enterprise Performance Management. (ET)
Axis Bank has acquired 1.2% stake in Karnataka Bank. (ET)
Telecom operators with more than 6.2 MHz of spectrum in GSM will have to pay more if the new Trai formula plans to replace subscriber-based allocation for spectrum. (BS)
The telecom regulator will unveil sweeping new rules that could strain the finances of some of India’s top mobile phone companies and set the stage for consolidation in a crowded and ultra-competitive market. (ET)
The Telecom Regulatory Authority of India plans to allow spectrum sharing between operators on commercial terms (ET)
The government has now formally banned foreign direct investment in cigarette manufacturing, closing the door on many foreign companies. (ET)
The finance ministry and the RBI have asked public sector banks to consider taking over urban cooperative banks, after their efforts to spur consolidation among large lenders drew a blank. (ET)
Merchandise exports grew by a healthy 54.1% in March to US$19.9bn. (FE)
Fortis Healthcare will raise Rs3.8bn through issue of 22.35mn equity shares on a preferential basis to Singapore-based private equity firm GIC Special Investments Pte Ltd. (BS)
The Maharashtra government intervened with GAIL India to organise gas supply till end-June for one unit of Tata Power’s Trombay plant. (BS)
Bolivia has said that the multi-billion dollar contract it signed with Jindal Steel to develop an iron ore mine has not been rescinded, but the steel company would have to pay a penalty for not fulfilling the terms of the agreement. (BS)
Tata Power has said that it is not inclined to accept a Maharashtra government order asking it to supply around 300MW to Reliance Infrastructure, setting the stage for an unusual confrontation with the state government, reports Our Political Bureau from Mumbai. (ET)
US-based Purdue Pharma has filed a patent infringement suit against Ranbaxy, after it had applied for marketing approval of a low-cost version of Purdue’s pain relieving medicine, Oxycodone. (BS)
Radico Khaitan is 'in talks' with Britan's Diageo Plc to reduce stake in their joint venture Diageo Radico Distilleries Pvt Ltd. (FE)
Usha Martin has chalked out a Rs12bn capital expenditure program, to be invested over a period of 36 months. (BS)
Tata Teleservices has approached the communication to seek a level playing field and ending the discrimination against the company on the policy front. (ET)
Fidelity Growth Partners India, the private equity arm of Fidelity International, has taken a significant minority stake in PL Engineering, a subsidiary of Punj Lloyd. (ET)
Prithvi Information Solutions has acquired US-based Percentix, a business intelligence consulting company specialising in Enterprise Performance Management. (ET)
Axis Bank has acquired 1.2% stake in Karnataka Bank. (ET)
Telecom operators with more than 6.2 MHz of spectrum in GSM will have to pay more if the new Trai formula plans to replace subscriber-based allocation for spectrum. (BS)
The telecom regulator will unveil sweeping new rules that could strain the finances of some of India’s top mobile phone companies and set the stage for consolidation in a crowded and ultra-competitive market. (ET)
The Telecom Regulatory Authority of India plans to allow spectrum sharing between operators on commercial terms (ET)
The government has now formally banned foreign direct investment in cigarette manufacturing, closing the door on many foreign companies. (ET)
The finance ministry and the RBI have asked public sector banks to consider taking over urban cooperative banks, after their efforts to spur consolidation among large lenders drew a blank. (ET)
Merchandise exports grew by a healthy 54.1% in March to US$19.9bn. (FE)
Monday, May 10, 2010
POSITIVE START LIKELY ON SUPPORTIVE ASIAN CUES
Headlines for the day:
New FDI norms for 'Indian' firms likely
Alcon to form JVs with Indian drug companies
Maruti asks component suppliers to reduce costs
Events for the day:
Major corporate action
Talwalkars to list today
Visaka Industries board to consider stock split
Results: Jubilant Organosys
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares ended at a seven-month closing low on Friday i.e. May 7, 2010, suffering their biggest weekly fall since November 2008, hurt by escalating fears over the euro zone debt crisis.
The US stocks slid on Friday, completing the biggest weekly decline in more than a year. The Dow Jones industrials closed with a loss of about 140 points, having been down almost 280 earlier in the day.
In today's trade, the Asian markets were trading in the positive territory. At the time of writing this report, SGX Nifty was trading 88.5 points higher.
Indian markets
The Asian markets were quoting higher in their early trade after a massive bail out for Greece took shape over the weekend. The International Monetary Fund has put up nearly $40 billion to help bail out Greece and appease investors' fears of a spreading European debt crisis. The strong Asian cues, good US data numbers released on Friday, will help the Indian markets to begin the session on a positive note. In this week, the investors will eye the index of industrial production (IIP) data for the month of March. The earnings of Jubilant Organosys will be watched later today, the stock will be in focus.
Commodity cues
In the commodity space, the crude oil prices fell for the fourth straight day, following US stocks, as investors remained bearish about Europe's prospects, with the Nymex light crude oil for the June series declined by $2.00 per barrel, whereas in the metals space, the Comex Gold for the June series rose by $13.10 and the Comex Silver for the June series was up by $0.94 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On May 06 2010, the foreign institutional investors (FIIs) were the net sellers of the Indian stocks to the tune of Rs1,389.10 crore, whereas the domestic mutual funds, on May 05, 2010, were the net buyers of the stocks to the tune of Rs102.90 crore.
New FDI norms for 'Indian' firms likely
Alcon to form JVs with Indian drug companies
Maruti asks component suppliers to reduce costs
Events for the day:
Major corporate action
Talwalkars to list today
Visaka Industries board to consider stock split
Results: Jubilant Organosys
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares ended at a seven-month closing low on Friday i.e. May 7, 2010, suffering their biggest weekly fall since November 2008, hurt by escalating fears over the euro zone debt crisis.
The US stocks slid on Friday, completing the biggest weekly decline in more than a year. The Dow Jones industrials closed with a loss of about 140 points, having been down almost 280 earlier in the day.
In today's trade, the Asian markets were trading in the positive territory. At the time of writing this report, SGX Nifty was trading 88.5 points higher.
Indian markets
The Asian markets were quoting higher in their early trade after a massive bail out for Greece took shape over the weekend. The International Monetary Fund has put up nearly $40 billion to help bail out Greece and appease investors' fears of a spreading European debt crisis. The strong Asian cues, good US data numbers released on Friday, will help the Indian markets to begin the session on a positive note. In this week, the investors will eye the index of industrial production (IIP) data for the month of March. The earnings of Jubilant Organosys will be watched later today, the stock will be in focus.
Commodity cues
In the commodity space, the crude oil prices fell for the fourth straight day, following US stocks, as investors remained bearish about Europe's prospects, with the Nymex light crude oil for the June series declined by $2.00 per barrel, whereas in the metals space, the Comex Gold for the June series rose by $13.10 and the Comex Silver for the June series was up by $0.94 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On May 06 2010, the foreign institutional investors (FIIs) were the net sellers of the Indian stocks to the tune of Rs1,389.10 crore, whereas the domestic mutual funds, on May 05, 2010, were the net buyers of the stocks to the tune of Rs102.90 crore.
DAILY NEWS ROUNDUP -MAY 10, 2010
SC directs Reliance Industries to initiate renegotiation with RNRL within six weeks on the terms of the gas supply agreement so that their interests are safeguarded. (BL)
JSW Steel reported that its crude steel production has increased by 20% to 560,000 tonnes in April. (BL)
IRB Infra bags Rs12bn road project. (BL)
JSL has signed a MoU with the Orissa Government to set up a 1,320MW super critical thermal power plant at Luni. (BL)
Apollo Hospitals will add 2,200 beds over the next two years with an estimated investment of Rs10bn. (FE)
Tata Steel will raise Rs100bn of debt to finance its 3mn tonne expansion in Jamshedpur and to part-pay debt at Corus. (DNA)
Dabur plans to go ahead with its overseas acquisition plans this fiscal, particularly in the personal care and healthcare segment, in the Middle East and African countries. (ET)
Sun Pharma is voluntarily recalling about 27,000 bottles of anticholesterol medicine Gemfibrozil tablets from the US market after impurity levels exceeded permissible limits. (ET)
Cipla in talks to make and supply drugs to global pharmaceutical firm Pfizer as the US-based company plans a foray in the generics business space. (ET)
RCom to launch IPTV service in Mumbai, Delhi in three months. (ET)
LIC Housing Finance plans to raise Rs200bn during the current fiscal to fund its business growth. (ET)
Alcon Inc plans to rope in strategic manufacturing alliances and joint ventures with Cipla. (BS)
The three Patni brothers of Patni Computer may get a premium for selling their stake to Japanese strategic investor NTT Data, compared to PE firm General Atlantic. (ET)
Ansal Properties plans to raise Rs710mn by selling 6.94% stake to a group of investors led by Enam Investment Services. (ET)
Kemrock Industries plans upto Rs18bn investment in 4-5 years. (BS)
Dalmia Cement and Kohlberg Kravis Roberts together with its affiliates have signed a definitive agreement under which KKR is planning to invest Rs7.5bn in the company’s subsidiary. (BS)
DCM Shriram plans to send Rs80mn in two years to develop a lignite mine in Rajasthan. (BS)
Triveni Engineering plans to list the demerged entity Triveni Turbine on the domestic bourses by the end of 2010. (BS)
Nava Bharat Ventures unit has concluded the purchase of 65% equity stake in Zambia-based Maamba Collieries from ZCCM-Investment Holdings Plc. (BS)
Gemini Communication acquires African telecom and internet services provider Rosy Blue Wireless. (ET)
The government may rework natural gas allocation priorities to accommodate ADAG's Dadri power plant. (ET)
Retail investors to get 5% discount in Engineers India's follow-on offer. (ET)
Great Offshore likely to ink joint venture with foreign offshore player. (ET)
Tinplate is working with Corus group to explore joint marketing opportunities for food and beverages packaging in Europe. (ET)
Private telecom companies ask the government not to give any concessions to BSNL and MTNL regarding payments for third-generation airwaves. (ET)
The value of the auction for 3G spectrum moves up to Rs129bn.(BL)
Foreign exchange reserves were up US$157mn to US$278bn for the week ending April 30. (BL)
The government may soon ask companies with less than 50% foreign equity to seek approval of the FIPB to make any downstream investment. (BS)
JSW Steel reported that its crude steel production has increased by 20% to 560,000 tonnes in April. (BL)
IRB Infra bags Rs12bn road project. (BL)
JSL has signed a MoU with the Orissa Government to set up a 1,320MW super critical thermal power plant at Luni. (BL)
Apollo Hospitals will add 2,200 beds over the next two years with an estimated investment of Rs10bn. (FE)
Tata Steel will raise Rs100bn of debt to finance its 3mn tonne expansion in Jamshedpur and to part-pay debt at Corus. (DNA)
Dabur plans to go ahead with its overseas acquisition plans this fiscal, particularly in the personal care and healthcare segment, in the Middle East and African countries. (ET)
Sun Pharma is voluntarily recalling about 27,000 bottles of anticholesterol medicine Gemfibrozil tablets from the US market after impurity levels exceeded permissible limits. (ET)
Cipla in talks to make and supply drugs to global pharmaceutical firm Pfizer as the US-based company plans a foray in the generics business space. (ET)
RCom to launch IPTV service in Mumbai, Delhi in three months. (ET)
LIC Housing Finance plans to raise Rs200bn during the current fiscal to fund its business growth. (ET)
Alcon Inc plans to rope in strategic manufacturing alliances and joint ventures with Cipla. (BS)
The three Patni brothers of Patni Computer may get a premium for selling their stake to Japanese strategic investor NTT Data, compared to PE firm General Atlantic. (ET)
Ansal Properties plans to raise Rs710mn by selling 6.94% stake to a group of investors led by Enam Investment Services. (ET)
Kemrock Industries plans upto Rs18bn investment in 4-5 years. (BS)
Dalmia Cement and Kohlberg Kravis Roberts together with its affiliates have signed a definitive agreement under which KKR is planning to invest Rs7.5bn in the company’s subsidiary. (BS)
DCM Shriram plans to send Rs80mn in two years to develop a lignite mine in Rajasthan. (BS)
Triveni Engineering plans to list the demerged entity Triveni Turbine on the domestic bourses by the end of 2010. (BS)
Nava Bharat Ventures unit has concluded the purchase of 65% equity stake in Zambia-based Maamba Collieries from ZCCM-Investment Holdings Plc. (BS)
Gemini Communication acquires African telecom and internet services provider Rosy Blue Wireless. (ET)
The government may rework natural gas allocation priorities to accommodate ADAG's Dadri power plant. (ET)
Retail investors to get 5% discount in Engineers India's follow-on offer. (ET)
Great Offshore likely to ink joint venture with foreign offshore player. (ET)
Tinplate is working with Corus group to explore joint marketing opportunities for food and beverages packaging in Europe. (ET)
Private telecom companies ask the government not to give any concessions to BSNL and MTNL regarding payments for third-generation airwaves. (ET)
The value of the auction for 3G spectrum moves up to Rs129bn.(BL)
Foreign exchange reserves were up US$157mn to US$278bn for the week ending April 30. (BL)
The government may soon ask companies with less than 50% foreign equity to seek approval of the FIPB to make any downstream investment. (BS)
Friday, May 7, 2010
INTRADAY CALL:-
1)SELL PNB:------DAY TRADERS CAN CONSIDER TO SELL THIS STOCK AROUND AT 1025.00 STOPLOSS 1037 TARGET 1004./996...
2) BUY NTPC:-----DAY TRADERS CAN CONSIDER TO BUY THIS STOCK AROUND AT 203.80 STOPLOSS 201.50 TARGET 207.00/209.60
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.
2) BUY NTPC:-----DAY TRADERS CAN CONSIDER TO BUY THIS STOCK AROUND AT 203.80 STOPLOSS 201.50 TARGET 207.00/209.60
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.
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