• Headline inflation rate, as measured by the wholesale price index (WPI) after showing marginal increase for two
consecutive weeks fell further into the negative territory to -1.54 per cent for the week ended July 18. The decline is primarily due to the decrease in prices of fuel and manufactured products. The inflation rate was -1.17 per cent for the previous week ended July 11 and 12.54 per cent for the corresponding week in 2008.
• Mahindra & Mahindra posted an increase of 151.6 per cent in net profit for the first quarter, strongly aided by lower raw
material prices and additional tractor numbers from Punjab Tractors (PTL), which it acquired two years ago. Net profit for the period rose to Rs 400.85 crore as compared to Rs 159.3 crore in the same quarter a year earlier. While PTL was bought by M&M in 2007 it was only merged with the company last July.
• Steel Authority of India Ltd (SAIL) reported a 27.7 per cent dip in its net profit for the quarter ended June 30. Net profit for the quarter was Rs 1, 326 crore, while net sales declined 16.5 per cent to Rs 8,950.6 crore. Average net realisation on product sales dipped 18 per cent during the quarter.
• Indian Oil Corporation has seen a 787 per cent jump in its first-quarter profits, due to lower under-recoveries, and
gains on account of product inventory and foreign exchange. Net profit for the quarter ended June 30 was Rs 3,682.8 crore, while net sales slipped 22.2 per cent to Rs 57,935 crore on lower product prices. The gross refining margin during the quarter was $7.36 a barrel vis a vis $16.81 last year.
• Reliance Infrastructure (R-Infra) has posted a net profit of Rs 317 crore for the first quarter ended June 30, an increase
of 25 per cent over the Rs 253-crore net profit in the corresponding quarter of previous year.
• Parsvnath’s net crashes by 81%, Essar Shipping reports Rs 60-cr profit, Patni net up 14 per cent, PTC Q1 net up 77
per cent, UTV Q1 loss at Rs 23.33 crore, IVRCL Infra net dips 17%, Suven Life Q1 net up 37%, Educomp Solutions Q1 net jumps two fold to Rs 36 cr, Bhushan Steel Q1 net up 34% at Rs 178 cr, UCO Bank Q1 net rises 34.03 per cent, Wockhardt Q2 net loss at Rs 190 cr, Voltas Q1 net profit dips by 5% y-o-y, MMTC June qtr net dips 23% to Rs 41 cr.
Friday, July 31, 2009
Equity Morning Mantra
MARKET OUTLOOK
The market may extend Thursday’s gain taking cues from
global markets. Asian stocks climbed, sending the MSCI Asia Pacific Index to a fifth monthly gain, as better-than- expected earnings and a rally in commodities lifted confidence the global economy is headed toward recovery. U.S. stocks rose on Thursday as solid corporate profit reports and a drop in the number of Americans on jobless benefits gave investors reasons to buy equities following the S&P 500's two days of
losses.
According to provisional data on NSE, foreign funds bought
worth a net Rs. 366.81 crore on Thursday, 30 July 2009. Domestic funds sold shares worth a net Rs. 286.67 crore on that day.
The market may extend Thursday’s gain taking cues from
global markets. Asian stocks climbed, sending the MSCI Asia Pacific Index to a fifth monthly gain, as better-than- expected earnings and a rally in commodities lifted confidence the global economy is headed toward recovery. U.S. stocks rose on Thursday as solid corporate profit reports and a drop in the number of Americans on jobless benefits gave investors reasons to buy equities following the S&P 500's two days of
losses.
According to provisional data on NSE, foreign funds bought
worth a net Rs. 366.81 crore on Thursday, 30 July 2009. Domestic funds sold shares worth a net Rs. 286.67 crore on that day.
Tuesday, July 28, 2009
HIGHLIGHTS OF THE FIRST QUARTER REVIEW OF MONETARY POLICY 2009-10
PROJECTIONS
1. GDP: Growth projection for GDP for 2009-10 on current assessment is placed at 6.0% with an upward bias.
2. WPI inflation: Keeping in view the global trend in commodity prices and the domestic demand-supply balance, WPI inflation for end-March 2010 is projected at around 5.0 per cent. This is higher than the projection of 4.0 per cent made in the Annual Policy Statement of April 2009.
3. Monetary projection: For policy purposes, money supply (M3) growth for 2009-10 is placed at 18.0 per cent, up from 17.0 per cent projected in the Annual Policy Statement. Consistent with this, aggregate deposits of scheduled commercial banks are projected to grow by 19.0 per cent. The growth in adjusted nonfood credit, including investment in bonds/debentures/shares of public sector undertakings and private corporate sector and CPs, has been retained at 20.0 per cent as in the Annual Policy Statement.
POLICY STANCE
• Manage liquidity actively so that the credit demand of the Government is met while ensuring the flow of credit to the private sector at viable rates.
• Keep a vigil on the trends and signals of inflation, and be prepared to respond quickly and effectively through policy adjustments.
• Maintain a monetary and interest rate regime consistent with price stability and financial stability supportive of returning the economy to the high growth path.
It is worth reiterating that the Reserve Bank will maintain an accommodative monetary stance until there are definite and robust signs of recovery. This accommodative monetary stance is, however, not the steady state stance. On the way forward, the Reserve Bank will have to reverse the expansionary measures to anchor inflation expectations and subdue inflationary pressures while preserving the growth momentum. The exit strategy will be modulated in accordance with the evolving macroeconomic developments.
MONETARY MEASURES: UNCHANGED
• Bank Rate: retained unchanged at 6.0 per cent.
• Repo Rate: retained unchanged at 4.75 per cent under the Liquidity Adjustment Facility (LAF)
• Reverse Repo Rate: retained unchanged at 3.25 per cent under the LAF
• Cash Reserve Ratio: CRR of scheduled banks has been retained unchanged at 5.0 per cent of net demand and time liabilities (NDTL).
1. GDP: Growth projection for GDP for 2009-10 on current assessment is placed at 6.0% with an upward bias.
2. WPI inflation: Keeping in view the global trend in commodity prices and the domestic demand-supply balance, WPI inflation for end-March 2010 is projected at around 5.0 per cent. This is higher than the projection of 4.0 per cent made in the Annual Policy Statement of April 2009.
3. Monetary projection: For policy purposes, money supply (M3) growth for 2009-10 is placed at 18.0 per cent, up from 17.0 per cent projected in the Annual Policy Statement. Consistent with this, aggregate deposits of scheduled commercial banks are projected to grow by 19.0 per cent. The growth in adjusted nonfood credit, including investment in bonds/debentures/shares of public sector undertakings and private corporate sector and CPs, has been retained at 20.0 per cent as in the Annual Policy Statement.
POLICY STANCE
• Manage liquidity actively so that the credit demand of the Government is met while ensuring the flow of credit to the private sector at viable rates.
• Keep a vigil on the trends and signals of inflation, and be prepared to respond quickly and effectively through policy adjustments.
• Maintain a monetary and interest rate regime consistent with price stability and financial stability supportive of returning the economy to the high growth path.
It is worth reiterating that the Reserve Bank will maintain an accommodative monetary stance until there are definite and robust signs of recovery. This accommodative monetary stance is, however, not the steady state stance. On the way forward, the Reserve Bank will have to reverse the expansionary measures to anchor inflation expectations and subdue inflationary pressures while preserving the growth momentum. The exit strategy will be modulated in accordance with the evolving macroeconomic developments.
MONETARY MEASURES: UNCHANGED
• Bank Rate: retained unchanged at 6.0 per cent.
• Repo Rate: retained unchanged at 4.75 per cent under the Liquidity Adjustment Facility (LAF)
• Reverse Repo Rate: retained unchanged at 3.25 per cent under the LAF
• Cash Reserve Ratio: CRR of scheduled banks has been retained unchanged at 5.0 per cent of net demand and time liabilities (NDTL).
News Capsules
• Tata Motors, the country’s largest truck producer, posted an increase of 57 per cent in net profit, thanks to an altered
accounting policy and tight cost measures adopted in the first quarter. The company, which revealed its standalone results today, reported a net profit of Rs 513.8 crore for the quarter ended June 30 against Rs 326.1 crore in the corresponding quarter a year earlier.
• NTPC Ltd, India’s largest power generator, has posted a 27 per cent rise in net profit for the quarter ended June 30 ‘09.
The higher profit is primarily attributed to the generation growth of 11 per cent. Around 2,000 MW of its power generation capacity went commercial since the previous quarter. This resulted in increased sale of electricity.
• Gas Authority of India Ltd (Gail), the country’s largest gas marketing company, would invest Rs 8,000 crore to expand its pipeline network. Of this, Rs 7,600 crore would be invested in constructing a 2,050-km pipeline from Jagdishpur to Haldia. So far, this is the single largest investment in any pipeline by Gail.
• Engineering and construction firm Punj Lloyd consolidated net profit rose 13.68 per cent growth to Rs 127.16 crore in the
first quarter of the fiscal and the company said it plans to raise Rs 1,250 crore. The company will raise the amount through qualified institutional placement and issuance of non-convertible debentures.
• Pipe maker Jindal Saw today posted a jump of 94 per cent in its net profit to Rs 135.99 crore for the second quarter
ended June 30, over the same period a year ago and is hopeful of a better quarters ahead. Total income of the company rose to Rs 1,501.11 crore in the latest quarter of current financial year (2009-10) from Rs 1,018.16 crore of the corresponding period last year, Jindal Saw said in a filing to the Bombay Stock Exchange (BSE).
• The company is planning a capital expenditure outlay of Rs 2,100 crore for 2009-10 on re-tooling the plant for
production efficiencies, developing new models, R&D activities and expanding production of its K-Series engine.
• Anil Ambani firm Reliance Natural Resources (RNRL) plans to raise funds through qualified institutional placement (QIP) of shares. The company will place a special resolution pertaining to the fund raising on Tuesday at its annual general meeting.
accounting policy and tight cost measures adopted in the first quarter. The company, which revealed its standalone results today, reported a net profit of Rs 513.8 crore for the quarter ended June 30 against Rs 326.1 crore in the corresponding quarter a year earlier.
• NTPC Ltd, India’s largest power generator, has posted a 27 per cent rise in net profit for the quarter ended June 30 ‘09.
The higher profit is primarily attributed to the generation growth of 11 per cent. Around 2,000 MW of its power generation capacity went commercial since the previous quarter. This resulted in increased sale of electricity.
• Gas Authority of India Ltd (Gail), the country’s largest gas marketing company, would invest Rs 8,000 crore to expand its pipeline network. Of this, Rs 7,600 crore would be invested in constructing a 2,050-km pipeline from Jagdishpur to Haldia. So far, this is the single largest investment in any pipeline by Gail.
• Engineering and construction firm Punj Lloyd consolidated net profit rose 13.68 per cent growth to Rs 127.16 crore in the
first quarter of the fiscal and the company said it plans to raise Rs 1,250 crore. The company will raise the amount through qualified institutional placement and issuance of non-convertible debentures.
• Pipe maker Jindal Saw today posted a jump of 94 per cent in its net profit to Rs 135.99 crore for the second quarter
ended June 30, over the same period a year ago and is hopeful of a better quarters ahead. Total income of the company rose to Rs 1,501.11 crore in the latest quarter of current financial year (2009-10) from Rs 1,018.16 crore of the corresponding period last year, Jindal Saw said in a filing to the Bombay Stock Exchange (BSE).
• The company is planning a capital expenditure outlay of Rs 2,100 crore for 2009-10 on re-tooling the plant for
production efficiencies, developing new models, R&D activities and expanding production of its K-Series engine.
• Anil Ambani firm Reliance Natural Resources (RNRL) plans to raise funds through qualified institutional placement (QIP) of shares. The company will place a special resolution pertaining to the fund raising on Tuesday at its annual general meeting.
Equity Morning Mantra
MARKET OUTLOOK
The market is likely to open on a flat note with a negative bias tracking the gobal markets. The U.S. stocks rose slightly on Monday in a late rally as investors rotated into financial shares, which had lagged in the recent two-week run-up. The Asian markets are also trading marginally down amid concern about the rapid pace of the rally. Back home, the Indian markets may remain volatile this week ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009. The RBI’s first quarterly monetary policy to be announce today will be closely watched.
According to provisional data on NSE, foreign funds bought
worth a net Rs. 439.542 crore on Monday, 27 July 2009. Domestic funds sold shares worth a net Rs. 278.97 crore on that day.
The market is likely to open on a flat note with a negative bias tracking the gobal markets. The U.S. stocks rose slightly on Monday in a late rally as investors rotated into financial shares, which had lagged in the recent two-week run-up. The Asian markets are also trading marginally down amid concern about the rapid pace of the rally. Back home, the Indian markets may remain volatile this week ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009. The RBI’s first quarterly monetary policy to be announce today will be closely watched.
According to provisional data on NSE, foreign funds bought
worth a net Rs. 439.542 crore on Monday, 27 July 2009. Domestic funds sold shares worth a net Rs. 278.97 crore on that day.
Wednesday, July 22, 2009
Derivatives Research
NIFTY-TECHNICAL OUTLOOK:
Today the markets are likely to open with flat to positive note
on back of positive global cues. All Emerging markets are
trading in green. Pivot points for Nifty based on 60 minute chart are P=4474 R1=4511 R2=4561 S1=4424 S2=4387.
The coming session is likely to witness a range of 4420 on
declines and 4560 on advances.
WORLD MARKET COMMENTARY
Yesterday all leading American indices like Dow Jones
Industrial Average, NASDAQ index and the S&P 500 (SPX) were in green. Dow gained by 0.77% and closed at 8916; S&P
500 up by 0.36% and closed at 955. European indices ended in green with in FTSE up by 0.85%, DAX up by 1.27% & CAC 40 up by 0.98% Today major stock markets in Asia are trading in green. The Shanghai Composite is trading up by 1.52% at 3262; Hang Seng is up by 0.12% at 19526. However Japan’s Nikkei is up by 0.16% at 9668 and Singapore’s Straits Times is up by 0.56% at 2468.
Singapore Nifty future is currently is up by 25 point at 4496.
Today the markets are likely to open with flat to positive note
on back of positive global cues. All Emerging markets are
trading in green. Pivot points for Nifty based on 60 minute chart are P=4474 R1=4511 R2=4561 S1=4424 S2=4387.
The coming session is likely to witness a range of 4420 on
declines and 4560 on advances.
WORLD MARKET COMMENTARY
Yesterday all leading American indices like Dow Jones
Industrial Average, NASDAQ index and the S&P 500 (SPX) were in green. Dow gained by 0.77% and closed at 8916; S&P
500 up by 0.36% and closed at 955. European indices ended in green with in FTSE up by 0.85%, DAX up by 1.27% & CAC 40 up by 0.98% Today major stock markets in Asia are trading in green. The Shanghai Composite is trading up by 1.52% at 3262; Hang Seng is up by 0.12% at 19526. However Japan’s Nikkei is up by 0.16% at 9668 and Singapore’s Straits Times is up by 0.56% at 2468.
Singapore Nifty future is currently is up by 25 point at 4496.
News Capsules
• Reliance Infrastructure said it has acquired 51 per cent of Reliance Cementation from its group company Reliance
Natural Resources (RNRL). Reliance Cementation is engaged in manufacturing and exporting cement.
• Ruias-owned Essar Oil has tied up $920 million to fund the expansion of its Vadinar refinery in Gujarat to 16 million
tones. The Vadinar refinery, situated five kilometres away from Reliance Industries’ twin refineries in Jamnagar district, currently operates at 133 per cent of its nameplate capacity of 10.5 million tonnes a year.
• Moser Baer Photo Voltaic (MBPV), a subsidiary of Moser
Baer India, the optical storage device maker, has deferred its plan to set up a manufacturing facility near Chennai.
• Pfizer, the largest drug maker in the world, has bought back a 29.52 per cent stake in its Indian arm, Pfizer India,
increasing its stake to 70.75 per cent in an open offer. Pfizer was looking to increase its stake in Pfizer India from 41 per cent to 75 per cent, and had revised its open offer price from Rs 675 to Rs 830. The offer, earlier scheduled to close on June 29, was closed on July 4.
• Dr Reddy's Laboratories (DRL) saw a 120.07 per cent increase in net profit to Rs 244.5 crore for the first quarter
ended June 30, 2009, as compared with Rs 111.1 crore during the corresponding period last year. Revenues during the quarter increased 21 per cent to Rs 1,818.9 crore as compared with Rs 1,503.9 crore last year.
• LIC Housing Finance, a subsidiary of LIC, said its net profit rose by 18.31 per cent at Rs 123.83 crore for the quarter
ended June 30, 2009, compared to the same period last year.
• Chambal Fertilisers & Chemicals reported a net profit of Rs 55.31 crore for the quarter ended June, a jump of two fold
over that in the same period last year.
• Shriram Transport Finance Company, plans to tap the debt capital markets for up to Rs 1,000 crore through a public issue of secured nonconvertible debentures and has filed a prospectus to that effect. The issue aggregates to Rs 500 crore and the company will retain the
option to raise an additional Rs 500 crore.
Natural Resources (RNRL). Reliance Cementation is engaged in manufacturing and exporting cement.
• Ruias-owned Essar Oil has tied up $920 million to fund the expansion of its Vadinar refinery in Gujarat to 16 million
tones. The Vadinar refinery, situated five kilometres away from Reliance Industries’ twin refineries in Jamnagar district, currently operates at 133 per cent of its nameplate capacity of 10.5 million tonnes a year.
• Moser Baer Photo Voltaic (MBPV), a subsidiary of Moser
Baer India, the optical storage device maker, has deferred its plan to set up a manufacturing facility near Chennai.
• Pfizer, the largest drug maker in the world, has bought back a 29.52 per cent stake in its Indian arm, Pfizer India,
increasing its stake to 70.75 per cent in an open offer. Pfizer was looking to increase its stake in Pfizer India from 41 per cent to 75 per cent, and had revised its open offer price from Rs 675 to Rs 830. The offer, earlier scheduled to close on June 29, was closed on July 4.
• Dr Reddy's Laboratories (DRL) saw a 120.07 per cent increase in net profit to Rs 244.5 crore for the first quarter
ended June 30, 2009, as compared with Rs 111.1 crore during the corresponding period last year. Revenues during the quarter increased 21 per cent to Rs 1,818.9 crore as compared with Rs 1,503.9 crore last year.
• LIC Housing Finance, a subsidiary of LIC, said its net profit rose by 18.31 per cent at Rs 123.83 crore for the quarter
ended June 30, 2009, compared to the same period last year.
• Chambal Fertilisers & Chemicals reported a net profit of Rs 55.31 crore for the quarter ended June, a jump of two fold
over that in the same period last year.
• Shriram Transport Finance Company, plans to tap the debt capital markets for up to Rs 1,000 crore through a public issue of secured nonconvertible debentures and has filed a prospectus to that effect. The issue aggregates to Rs 500 crore and the company will retain the
option to raise an additional Rs 500 crore.
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