Market opened gap up & rebounded strongly after the yesterday’s decline. Due to expiry, it was choppy session but remained upward biased throughout the day. Technically, the tussle over sustainability above 200 EMA is still on as it closed well above the same in the end. Keeping in mind all the cues, US markets are on verge of breakout also so the market likely to behave accordingly & now the 3580 level will be crucial level in the near term.
The BSE Sensex closed higher by 401.50 points at 11,403.25 and NSE Nifty ended up by 111.60 points at 3,473.95. BSE Mid Caps and Small Caps closed with gains of 63.15 and 52.58 points at 3,513.86 and 3,940.90 respectively. The BSE Sensex touched intraday high of 11,430.25 and intraday low of 11,091.56. Among the Sensex pack 29 stocks ended in green territory and 1 in red. The market breadth indicating the overall health of the market remained strong as 1433
stocks closed in green while 1025 stocks closed in red and 88 stocks remained unchanged in BSE.The S&P CNX Nifty was up by 111.60 points or 3.32% to 3473.95 The NSE turnover was up Rs.15524.28 from last trading session’s Rs. 13316.06 crore.
Wednesday, April 29, 2009
Trading Calls
Buy JP Associate with stop loss of Rs 118 for a target of Rs 150
Buy Nagarjuna Fertlizer with stop loss of Rs 20 for a target of Rs 28
Buy Colgate around Rs 473.90-Rs 461.70. Stop loss of Rs 456, book profit at Rs 491-Rs 521
Sell Divis Labs around Rs 854.30-Rs 866.70. Stop loss of Rs 874, cover short at Rs 834.70-Rs 802.70
Buy Tata Steel only on sharp decline with a stop loss of Rs 202 for a short term target of Rs 290
Buy KPIT Cummins around 44 for a target of 59 for a short term
Buy Nagarjuna Fertlizer with stop loss of Rs 20 for a target of Rs 28
Buy Colgate around Rs 473.90-Rs 461.70. Stop loss of Rs 456, book profit at Rs 491-Rs 521
Sell Divis Labs around Rs 854.30-Rs 866.70. Stop loss of Rs 874, cover short at Rs 834.70-Rs 802.70
Buy Tata Steel only on sharp decline with a stop loss of Rs 202 for a short term target of Rs 290
Buy KPIT Cummins around 44 for a target of 59 for a short term
Pre Market 29- Apr
Key benchmark indices are seen opening strong on the back of positive Asian indices. The SGX Nifty futures for April 2009 expiry surged 52.50 points in Singapore. However volatility may hit roof with derivatives contracts for April 2009 series expiring today, 29 April 2009.
Aggregate results of 475 firms showed 3.6% fall in net profit on 4.5% rise in sales in Q4 March 2009 over Q4 March 2008.
Expiry of derivatives contracts today, 29 April 2009 may heighten volatility on the bourses. As per reports, rollover of Nifty positions from April 2009 series to May 2009 series stood at 61% while those of stock futures were 54%, as on Tuesday, 28 April 2009.
Aggregate results of 475 firms showed 3.6% fall in net profit on 4.5% rise in sales in Q4 March 2009 over Q4 March 2008.
Expiry of derivatives contracts today, 29 April 2009 may heighten volatility on the bourses. As per reports, rollover of Nifty positions from April 2009 series to May 2009 series stood at 61% while those of stock futures were 54%, as on Tuesday, 28 April 2009.
Tuesday, April 28, 2009
Post Market Update 28 Apr
After the negative opening, index traded with southward biased throughout the session. Technically, sustainability above 200 EMA is still an issue as it closed below the same in
the end. We witnessed selling pressure across the board as a result market breadth ended on strongly on the negative side. It’s important for the market to sustain above 3300 mark to
continue with the upside bias otherwise it’ll move sideways in the near term. As mentioned earlier, 3150 levels will be the decisive support level of present rally.
The BSE Sensex closed lower by 370.10 points at 11,001.75 and NSE Nifty ended down by 107.65 points at 3,362.35. BSE Mid Caps and Small Caps closed with losses of 133.57 and 138.82 points at 3,450.71 and 3,888.32 respectively. The BSE Sensex touched intraday high of
11,375.97 and intraday low of 10,961.75.Among the Sensex pack all 30 stocks ended in red territory. The market breadth indicating the overall health of the market remained extremely weak as 1807 stocks closed in red while 654 stocks closed in green and 81 stocks remained unchanged in BSE. The S&P CNX Nifty was down by 107.65 points or –3.10% to 3362.35. The NSE turnover was down Rs.13316.06 from last trading session’s Rs. 15334.96 crore.
the end. We witnessed selling pressure across the board as a result market breadth ended on strongly on the negative side. It’s important for the market to sustain above 3300 mark to
continue with the upside bias otherwise it’ll move sideways in the near term. As mentioned earlier, 3150 levels will be the decisive support level of present rally.
The BSE Sensex closed lower by 370.10 points at 11,001.75 and NSE Nifty ended down by 107.65 points at 3,362.35. BSE Mid Caps and Small Caps closed with losses of 133.57 and 138.82 points at 3,450.71 and 3,888.32 respectively. The BSE Sensex touched intraday high of
11,375.97 and intraday low of 10,961.75.Among the Sensex pack all 30 stocks ended in red territory. The market breadth indicating the overall health of the market remained extremely weak as 1807 stocks closed in red while 654 stocks closed in green and 81 stocks remained unchanged in BSE. The S&P CNX Nifty was down by 107.65 points or –3.10% to 3362.35. The NSE turnover was down Rs.13316.06 from last trading session’s Rs. 15334.96 crore.
News Capsules
Mukesh Ambani-controlled Reliance Industries (RIL) has raised its crude oil production capacity from the D6 block of the Krishna-Godavari (KG) basin, the largest find in the country, to a maximum level of 40,000 barrels per day (bpd) from the earlier 18,000 bpd.
Japanese two-wheeler maker Honda and its Indian partner, the Hero group, wish to further their 25-year-old partnership. Both sell two-wheelers, including motorcycles and automatic scooters, in the same segments, with some cannibalisation already taking place.
Tech Mahindra posted 5.35 per cent increase in net profit at Rs 230.40 crore for the fourth quarter of the past fiscal.
Drug firm Glenmark Generics Ltd has received tentative approval from the US Food and Drug Administration (FDA) for the generic version of cholesterol lowering drug Ezetimibe, sold under the brand name 'Zetia' in 10 mg strength.
Exide Industries, has reported a 9 per cent rise in net profit for the quarter ended March 31 over the corresponding quarter of the previous fiscal to Rs 68.20 crore, mainly on the back of increased operational efficiency as well as volume growth in the replacement market in the automotive batteries segment.
Oriental Bank of Commerce posted a net profit of Rs 196.82 crore in the fourth quarter ended March 31, 2009, while it had incurred a net loss Rs 99.44 crore in the same quarter a year ago.
Areva T&D India said its net profit declined 5 per cent for the first quarter ended March 31, 2009, to Rs 51.40 crore over the same quarter last year.
Bosch Ltd, a supplier of automotive components to original equipment makers (OEMs), has reported 69.4 per cent drop in net profit to Rs 49.3
crore for its first quarter ended March 2009, compared with the corresponding quarter last year. Its net sales for the quarter dropped 20.6 per cent to Rs 991.6 crore.
Aban Offshore said its consolidated net loss during the fourth quarter ended March 31 stood at Rs 93.04 crore, whereas it had a net profit of Rs 33.92 crore in the same quarter last fiscal.
Shree Renuka Sugars said its consolidated net profit grew marginally by 3.75 per cent in the second quarter ended March 31 to Rs 33.2 crore over the corresponding period a year ago.
Japanese two-wheeler maker Honda and its Indian partner, the Hero group, wish to further their 25-year-old partnership. Both sell two-wheelers, including motorcycles and automatic scooters, in the same segments, with some cannibalisation already taking place.
Tech Mahindra posted 5.35 per cent increase in net profit at Rs 230.40 crore for the fourth quarter of the past fiscal.
Drug firm Glenmark Generics Ltd has received tentative approval from the US Food and Drug Administration (FDA) for the generic version of cholesterol lowering drug Ezetimibe, sold under the brand name 'Zetia' in 10 mg strength.
Exide Industries, has reported a 9 per cent rise in net profit for the quarter ended March 31 over the corresponding quarter of the previous fiscal to Rs 68.20 crore, mainly on the back of increased operational efficiency as well as volume growth in the replacement market in the automotive batteries segment.
Oriental Bank of Commerce posted a net profit of Rs 196.82 crore in the fourth quarter ended March 31, 2009, while it had incurred a net loss Rs 99.44 crore in the same quarter a year ago.
Areva T&D India said its net profit declined 5 per cent for the first quarter ended March 31, 2009, to Rs 51.40 crore over the same quarter last year.
Bosch Ltd, a supplier of automotive components to original equipment makers (OEMs), has reported 69.4 per cent drop in net profit to Rs 49.3
crore for its first quarter ended March 2009, compared with the corresponding quarter last year. Its net sales for the quarter dropped 20.6 per cent to Rs 991.6 crore.
Aban Offshore said its consolidated net loss during the fourth quarter ended March 31 stood at Rs 93.04 crore, whereas it had a net profit of Rs 33.92 crore in the same quarter last fiscal.
Shree Renuka Sugars said its consolidated net profit grew marginally by 3.75 per cent in the second quarter ended March 31 to Rs 33.2 crore over the corresponding period a year ago.
Pre Market 28-Apr
The market is likely to trade in narrow range taking mixed cues from global markets. Stock specific activity will be high in companies that will be announcing their March 2009 quarterly results. Expiry of derivatives expiry on Wednesday, 29 April 2009 may prop the volatility further. Asian technology and healthcare shares advanced, overshadowing declines among the region’s commodity producers. U.S. stocks fell on Monday on concerns the spreading of a new strain of flu could dampen optimism about the economy, overshadowing a sweeping overhaul of General Motors Corp and gains in biotechnology stocks.
According to provisional data on NSE, foreign funds bought stocks worth a net Rs. 257.38 crore on Monday, 27 April 2009. Domestic funds bought shares worth a net Rs. 68.06 crore on that day.
According to provisional data on NSE, foreign funds bought stocks worth a net Rs. 257.38 crore on Monday, 27 April 2009. Domestic funds bought shares worth a net Rs. 68.06 crore on that day.
Monday, April 27, 2009
Post Market 27 Apr
Market opened on negative note & remained choppy throughout the day due to the expiry week as the same we have mentioned in our last newsletter too. Keeping in view, traders should avoid overtrading for next two sessions. Market breadth was also ended in red. Banking & IT stocks
still traded with the positive biased. Technically, 3380-3400 levels will provide cushion for further fall while the 3520-3570 will act as resistance so it’ll trade in the range.
The BSE Sensex closed higher by 42.80 points at 11,371.85 whereas NSE Nifty ended down by 10.75 points at 3,470. BSE Mid Caps and Small Caps closed with losses of 15.81 and 41.12 points at 3,584.28 and 4,027.14 respectively. The BSE Sensex touched intraday high of 11,492.10 and intraday low of 11,176.55. Among the Sensex pack 16 stocks ended in red territory and 14 in green. The market breadth indicating the overall health of the market remained negative as 1341 stocks closed in red while 1158 stocks closed in green and 83 stocks remained unchanged in BSE. The S&P CNX Nifty was down by 10.75 points or 0.31% to 3470.00. The NSE turnover was up Rs.15334.96 from last trading session’s Rs. 13577.00 crore.
still traded with the positive biased. Technically, 3380-3400 levels will provide cushion for further fall while the 3520-3570 will act as resistance so it’ll trade in the range.
The BSE Sensex closed higher by 42.80 points at 11,371.85 whereas NSE Nifty ended down by 10.75 points at 3,470. BSE Mid Caps and Small Caps closed with losses of 15.81 and 41.12 points at 3,584.28 and 4,027.14 respectively. The BSE Sensex touched intraday high of 11,492.10 and intraday low of 11,176.55. Among the Sensex pack 16 stocks ended in red territory and 14 in green. The market breadth indicating the overall health of the market remained negative as 1341 stocks closed in red while 1158 stocks closed in green and 83 stocks remained unchanged in BSE. The S&P CNX Nifty was down by 10.75 points or 0.31% to 3470.00. The NSE turnover was up Rs.15334.96 from last trading session’s Rs. 13577.00 crore.
Buy bluechips trading at 10-12 times P/E: Raamdeo Agrawal
Raamdeo Agrawal, Director and Co-Founder, Motilal Oswal Financial Services, is surprised by the extent, strength, and longevity of the rally. However, he was quick to add that valuations don't look extended after the recent rally.
He feels it is a good time to build a portfolio with bluechips trading at 10-12 times price to earnings. "At 8,000 or so, the market was very pessimistic. That was an opportunity to buy and invest without looking at anything. Even now, I don’t think valuations are anything to be worried about if one is a long-term investor with 3-4 years horizon. I think at 10-11-12 P/E multiple for the broader market and more like 8-10-12 times for individual companies are times to build your portfolio with bluechips."
Commenting on Q4 earnings, he said numbers are on expected lines with some positive surprises.
He sees FY10 Sensex EPS at Rs 880-900. "There have been no downgrades yet. I think FY10 earnings are likely to be in line with FY09."
Agrawal is surprised by the robust demand in cement companies and said he will remain invested.
He feels it is a good time to build a portfolio with bluechips trading at 10-12 times price to earnings. "At 8,000 or so, the market was very pessimistic. That was an opportunity to buy and invest without looking at anything. Even now, I don’t think valuations are anything to be worried about if one is a long-term investor with 3-4 years horizon. I think at 10-11-12 P/E multiple for the broader market and more like 8-10-12 times for individual companies are times to build your portfolio with bluechips."
Commenting on Q4 earnings, he said numbers are on expected lines with some positive surprises.
He sees FY10 Sensex EPS at Rs 880-900. "There have been no downgrades yet. I think FY10 earnings are likely to be in line with FY09."
Agrawal is surprised by the robust demand in cement companies and said he will remain invested.
Banking, telecom lead the gains
The Indian markets gained ground during the previous two hours of trade as buying was witnessed at lower levels. While banking, telecom and engineering stocks are leading the pack of gainers, select pharma and power stocks are trading weak on the bourses currently. The overall advance to decline ratio is poised at 1.9 to 1 on the BSE.
The BSE-Sensex and NSE-Nifty indices are trading firm, up by around 125 points and 30 points respectively. The BSE-Midcap and BSE-Smallcap indices are also trading firm, up by 1.3% each. The rupee is trading at 49.98 to the dollar.
FMCG stocks are trading mixed. GSK consumer is trading firm, while Dabur India is trading weak currently. As per a leading business daily, Dabur India is planning to enter the apple soft drink market during the current month. The present rivals in the category include Coca-Cola’s Fanta Apple and Parle Agro’s Appy. The new launch is a part of Dabur’s plans to enter the non-cola soft drink market, which is reporting a 30% YoY. Dabur hold 52% market share in the packaged fruit juice market, but is not present in the plain beverage segment. With this new launch, the company is hoping to address this big gap in its portfolio and also enter the low-priced beverage market. On account of rising health awareness among the consumers, the juice and juice-drinks market is witnessing strong demand. Currently pegged yearly at Rs 15 bn, the segment earns higher profitability than the carbonated drinks.
Textile stocks are also trading mixed currently. While Bombay Dyeing and Welspun India are trading firm, Raymond is trading in the red. Raymond had announced its 4QFY09 and FY09 results last weekend. The company’s sales grew marginally by 4% YoY during FY09, while the topline declined by 18% YoY during 4QFY09. The company’s full year operating margins have improved by 1.7% YoY to 8.6% due to higher realisations in the worsted fabric business. However, due to higher interest costs and a loss on foreign currency borrowing drained Raymaond’s full year bottomline, which recorded a loss of Rs 2.7 bn compared to profit of Rs 662 m a year earlier. On account of loss during FY09, the company has not declared any dividends, barring record of continuous dividend payments during the earlier years.
The BSE-Sensex and NSE-Nifty indices are trading firm, up by around 125 points and 30 points respectively. The BSE-Midcap and BSE-Smallcap indices are also trading firm, up by 1.3% each. The rupee is trading at 49.98 to the dollar.
FMCG stocks are trading mixed. GSK consumer is trading firm, while Dabur India is trading weak currently. As per a leading business daily, Dabur India is planning to enter the apple soft drink market during the current month. The present rivals in the category include Coca-Cola’s Fanta Apple and Parle Agro’s Appy. The new launch is a part of Dabur’s plans to enter the non-cola soft drink market, which is reporting a 30% YoY. Dabur hold 52% market share in the packaged fruit juice market, but is not present in the plain beverage segment. With this new launch, the company is hoping to address this big gap in its portfolio and also enter the low-priced beverage market. On account of rising health awareness among the consumers, the juice and juice-drinks market is witnessing strong demand. Currently pegged yearly at Rs 15 bn, the segment earns higher profitability than the carbonated drinks.
Textile stocks are also trading mixed currently. While Bombay Dyeing and Welspun India are trading firm, Raymond is trading in the red. Raymond had announced its 4QFY09 and FY09 results last weekend. The company’s sales grew marginally by 4% YoY during FY09, while the topline declined by 18% YoY during 4QFY09. The company’s full year operating margins have improved by 1.7% YoY to 8.6% due to higher realisations in the worsted fabric business. However, due to higher interest costs and a loss on foreign currency borrowing drained Raymaond’s full year bottomline, which recorded a loss of Rs 2.7 bn compared to profit of Rs 662 m a year earlier. On account of loss during FY09, the company has not declared any dividends, barring record of continuous dividend payments during the earlier years.
News Capsules
Ranbaxy Laboratories, India’s biggest drugmaker, plans to scale down its operations in Europe in a bid to cut costs and return to profitability.
India's largest outsourcing firm Tata Consultancy Services (TCS) said that it will relocate staff abroad into India. However, the company would continue to do work onshore and relocation did not mean that it was winding up its operations abroad.
Dabur India Ltd is set to try and take the fizz out of Coca-Cola’s Fanta Apple and Parle Agro’s Appy. Dabur plans to enter the apple soft drink market this month.
Punj Lloyd is shifting its workforce from its UK-based subsidiary to India, particularly to its Delhi and Hyderabad centres, as an effort to cut costs amid global economic slowdown.
JSW Energy is close to acquiring a sub-Saharan African thermal coal mine, which has reserves of more than 200 million tonnes, to minimise dependence on other overseas companies.
Aptech Ltd, is betting big on the huge Brazilian market and has entered into a 51:49 joint venture with the Falgo group to set up IT training centres in that country. The investment in the Brazilian venture is pegged at USD one million. The company aims to have around 100 centres in LatAm in the next three to four years.
Indian arm of Swedish automotive component maker SKF is investing Rs 150 crore in a new ball bearings manufacturing plant at Haridwar.
Mumbai-based SKF India, 51% owned by SKF, had put the investment on hold for the past two years due to slowing demand.
India's largest outsourcing firm Tata Consultancy Services (TCS) said that it will relocate staff abroad into India. However, the company would continue to do work onshore and relocation did not mean that it was winding up its operations abroad.
Dabur India Ltd is set to try and take the fizz out of Coca-Cola’s Fanta Apple and Parle Agro’s Appy. Dabur plans to enter the apple soft drink market this month.
Punj Lloyd is shifting its workforce from its UK-based subsidiary to India, particularly to its Delhi and Hyderabad centres, as an effort to cut costs amid global economic slowdown.
JSW Energy is close to acquiring a sub-Saharan African thermal coal mine, which has reserves of more than 200 million tonnes, to minimise dependence on other overseas companies.
Aptech Ltd, is betting big on the huge Brazilian market and has entered into a 51:49 joint venture with the Falgo group to set up IT training centres in that country. The investment in the Brazilian venture is pegged at USD one million. The company aims to have around 100 centres in LatAm in the next three to four years.
Indian arm of Swedish automotive component maker SKF is investing Rs 150 crore in a new ball bearings manufacturing plant at Haridwar.
Mumbai-based SKF India, 51% owned by SKF, had put the investment on hold for the past two years due to slowing demand.
Pre Market Outlook 27-Apr
The market is likely to open on a negative note taking cues from Asian markets.
However stock specific activity will be high in companies that will be announcing their
March 2009 quarterly results. Expiry of derivatives expiry on Wednesday, 29 April 2009
may prop the volatility further. Asian stocks climbed to the highest in more than three
months, led by finance companies and drugmakers, as the U.S. Federal Reserve said
most banks being given stress tests have adequate capital. U.S. stocks rallied on Friday
as earnings showed companies have weathered the recession and economic data raised
hopes the economic cycle may have hit a bottom.
According to provisional data on NSE, foreign funds bought stocks worth a net Rs.
576.77 crore on Friday, 24 April 2009. Domestic funds bought shares worth a net
Rs. 15.31 crore on that day.
However stock specific activity will be high in companies that will be announcing their
March 2009 quarterly results. Expiry of derivatives expiry on Wednesday, 29 April 2009
may prop the volatility further. Asian stocks climbed to the highest in more than three
months, led by finance companies and drugmakers, as the U.S. Federal Reserve said
most banks being given stress tests have adequate capital. U.S. stocks rallied on Friday
as earnings showed companies have weathered the recession and economic data raised
hopes the economic cycle may have hit a bottom.
According to provisional data on NSE, foreign funds bought stocks worth a net Rs.
576.77 crore on Friday, 24 April 2009. Domestic funds bought shares worth a net
Rs. 15.31 crore on that day.
Sunday, April 26, 2009
Market rises for the seventh week in a row - Weekly Analysis
Bulls are on the rampage with the market surging for the seventh week in a row on the back of sustained buying by foreign funds amid signs of improvement in the Indian economy, possibility of further reduction in interest rates with inflation at near zero and on easing credit crunch.
The RBI, as part of its Annual Credit Policy, cut its key short-term rates by 25 basis points each on Tuesday, 21 April 2009, to prop up growth amid global economic slowdown. The repo rate, at which the RBI lends to the banks, was cut to 4.75%, and the reverse repo rate, at which the RBI absorbs excess cash from banks, was reduced to 3.25%, effective immediately. The bank rate, used by banks to price long-term loans, remained at 6%. Banks' cash reserve requirements (CRR) were also left unchanged at 5%.
Inflation based on the wholesale price index (WPI) rose 0.26% in the year through 11 April 2009, higher than previous week's 0.18% rise, data released by the government on 23 April 2009, showed.
FII inflow in April 2009 totaled Rs 4,860.40 crore, while the outflow in calendar year 2009 totaled Rs 1,811.20 crore (till 23 April 2009).
The 30-share BSE Sensex jumped 305.96 points or 2.78% to 11,329.05, in week ended 24 April 2009. It was the biggest closing level for the Sensex in more than six months. The broader 50-unit Nifty jumped 96.35 points, or 2.84%, to 3480.75 in the week.
The BSE Mid-Cap index gained 127.49 points or 3.67% to 3,600.09 and the BSE Small-Cap index advanced 116.7 points or 2.95% to 4,068.26 in the week.
Trading for the week started on a dull note. Key benchmark indices edged lower on 20 April 2009, as investors resorted to profit taking after a recent sharp surge in share prices. The BSE 30-share Sensex fell 43.59 points or 0.4% to 10,979.50. The S&P CNX Nifty fell 7.30 points or 0.22% to 3,377.10.
On Tuesday, 21 April 2009, key benchmark indices settled in the red in a day of high volatility triggered volatility in index heavyweight Reliance Industries. Rate sensitive banking and auto stocks fell even as realty stocks gained after the central bank cut short-term interest rates. The BSE 30-share Sensex fell 81.39 points or 0.74% to 10,898.11. The S&P CNX Nifty fell 11.80 points or 0.35% to 3,365.30.
The market fell for the third straight day on 22 April 2009, led by fall in realty, capital goods and auto stocks. Political uncertainty weighed on the market with polling for India's 15th Lok Sabha underway. The BSE 30-share Sensex fell 80.57 points or 0.74% to 10,817.54. The S&P CNX Nifty fell 35 points or 1.04% to 3,330.30.
Bulls were back on 23 April 2009, as key benchmark indices reversed three days losses on firm global markets. IT, metal, realty, banking and auto stocks jumped that day. The BSE 30-share Sensex rose 317.45 points or 2.93% to 11,134.99. The S&P CNX Nifty rose 93.40 points or 2.8% to 3,423.70.Indices closed higher on 24 April 2009, after sentiments turned bullish with a strong opening of European markets. Rate sensitives like realty and banks lead the rally. The BSE 30-share Sensex rose 194.06 points or 1.74% to 11,329.05. The S&P CNX Nifty rose 57.05 points or 1.67% to 3480.75.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 3.90% in the week. Its net profit fell 9.35% to Rs 3546 crore on 23.9% fall in sales to Rs 28,362 crore in Q4 March 2009 over Q4 March 2008. The company announced results after the market hours on Thursday, 23 April 2009.
Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. DLF (up 5.01%), Indiabulls Real Estate (up 14.56%), and Housing Development & Infrastructure (up 19.32%), spurted. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
Banking stocks mostly rose on hopes falling interest rates will boost lending growth. India's largest bank in terms of assets and branch network State Bank of India (SBI) rose 0.11%. SBI chairman O.P. Bhatt on 21 April 2009 said interest rate cuts by the Reserve Bank of India were a signal for commercial banks to lower their rates. He said a decision on whether SBI would lower rates would be taken after a meeting of the bank's asset-liability. SBI's advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.
The RBI, as part of its Annual Credit Policy, cut its key short-term rates by 25 basis points each on Tuesday, 21 April 2009, to prop up growth amid global economic slowdown. The repo rate, at which the RBI lends to the banks, was cut to 4.75%, and the reverse repo rate, at which the RBI absorbs excess cash from banks, was reduced to 3.25%, effective immediately. The bank rate, used by banks to price long-term loans, remained at 6%. Banks' cash reserve requirements (CRR) were also left unchanged at 5%.
Inflation based on the wholesale price index (WPI) rose 0.26% in the year through 11 April 2009, higher than previous week's 0.18% rise, data released by the government on 23 April 2009, showed.
FII inflow in April 2009 totaled Rs 4,860.40 crore, while the outflow in calendar year 2009 totaled Rs 1,811.20 crore (till 23 April 2009).
The 30-share BSE Sensex jumped 305.96 points or 2.78% to 11,329.05, in week ended 24 April 2009. It was the biggest closing level for the Sensex in more than six months. The broader 50-unit Nifty jumped 96.35 points, or 2.84%, to 3480.75 in the week.
The BSE Mid-Cap index gained 127.49 points or 3.67% to 3,600.09 and the BSE Small-Cap index advanced 116.7 points or 2.95% to 4,068.26 in the week.
Trading for the week started on a dull note. Key benchmark indices edged lower on 20 April 2009, as investors resorted to profit taking after a recent sharp surge in share prices. The BSE 30-share Sensex fell 43.59 points or 0.4% to 10,979.50. The S&P CNX Nifty fell 7.30 points or 0.22% to 3,377.10.
On Tuesday, 21 April 2009, key benchmark indices settled in the red in a day of high volatility triggered volatility in index heavyweight Reliance Industries. Rate sensitive banking and auto stocks fell even as realty stocks gained after the central bank cut short-term interest rates. The BSE 30-share Sensex fell 81.39 points or 0.74% to 10,898.11. The S&P CNX Nifty fell 11.80 points or 0.35% to 3,365.30.
The market fell for the third straight day on 22 April 2009, led by fall in realty, capital goods and auto stocks. Political uncertainty weighed on the market with polling for India's 15th Lok Sabha underway. The BSE 30-share Sensex fell 80.57 points or 0.74% to 10,817.54. The S&P CNX Nifty fell 35 points or 1.04% to 3,330.30.
Bulls were back on 23 April 2009, as key benchmark indices reversed three days losses on firm global markets. IT, metal, realty, banking and auto stocks jumped that day. The BSE 30-share Sensex rose 317.45 points or 2.93% to 11,134.99. The S&P CNX Nifty rose 93.40 points or 2.8% to 3,423.70.Indices closed higher on 24 April 2009, after sentiments turned bullish with a strong opening of European markets. Rate sensitives like realty and banks lead the rally. The BSE 30-share Sensex rose 194.06 points or 1.74% to 11,329.05. The S&P CNX Nifty rose 57.05 points or 1.67% to 3480.75.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 3.90% in the week. Its net profit fell 9.35% to Rs 3546 crore on 23.9% fall in sales to Rs 28,362 crore in Q4 March 2009 over Q4 March 2008. The company announced results after the market hours on Thursday, 23 April 2009.
Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. DLF (up 5.01%), Indiabulls Real Estate (up 14.56%), and Housing Development & Infrastructure (up 19.32%), spurted. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
Banking stocks mostly rose on hopes falling interest rates will boost lending growth. India's largest bank in terms of assets and branch network State Bank of India (SBI) rose 0.11%. SBI chairman O.P. Bhatt on 21 April 2009 said interest rate cuts by the Reserve Bank of India were a signal for commercial banks to lower their rates. He said a decision on whether SBI would lower rates would be taken after a meeting of the bank's asset-liability. SBI's advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.
Friday, April 24, 2009
Upmove intack, see Sensex touching 12K: Dipan Mehta
Dipan Mehta, Member, BSE and NSE, feels the current rally has still some steam left. "We could go about testing 12,000 on the Sensex and maybe 3,700-3,800 on the Nifty. We could have maybe one-two down days, but on the whole we are on an upmove over here."
He feels elections will not make much difference on the earnings of companies, but feels price-to-earnings will certainly get impacted. “A fractured verdict would mean more uncertainty, which means that investors would then pay a lower P/E multiple. At the same time, if there is a strong government at the Centre, then there would be more certainty and investor would be prepared to pay a higher P/E multiple.”
Mitesh Thacker, Technical Analyst, miteshthacker.com, said he is looking at targets in the range of around 3,750. "The good part of the move, which we saw in the Nifty for the last two weeks, is the fact that the entire market was expecting some kind of correction to happen in the Nifty, instead it has turned out to be more of a sideways consolidation. The Nifty was moving in a range of 200 points, so it looks like a breather. The market has now broken out of that. Once we cross 3,520-3,530 levels, definitely we can look at levels of around 3,750."
Asian mkts to fall 20% during summer: Mark Matthews
Mark Matthews, Asia Pacific Strategist, Fox Pitt, said global markets have bottomed out but it is not the right time to buy. He doesn't subscribe to view that the markets will gain as they are underowned. He doesn't see enough reasons for the markets to gain much from here. He is not bullish on global markets and feels that Indian equities are less attractive. Although he says "India is one of the three countries in Asia that will have growth this year," he is quick to point out that trade in Asia will see a 20% correction from the current levels during summer, for which he blames poor corporate earnings. According to him, corporate Asia will see a slide of 20-25% (in the first quarter) which will be the worst performance in a decade.
Potential for mkt downside higher ahead: Deutsche Bank
Ajay Bagga of Deutsche Bank said the markets have reached valuations where there may be a pause after which events — results and elections — will decide future course. “The market is headed for consolidation or downside,” Bagga said.
The participation of retail investors in the recent rally had been low, he said, which signified it was a bear market rally.
The participation of retail investors in the recent rally had been low, he said, which signified it was a bear market rally.
Mkts out of bearish phase; retest of lows unlikely: Nomura
Sean Darby of Nomura International believes the bear market that existed last year has been broke out off and does not expect a retest of the lows. He sees a shallow economic recovery and higher inflation. Darby expects a sticky consumer price index going forward. He believes inflation in the third and fourth quarter of FY10 would be high on the back of higher food and fuel prices. Darby said that China and Taiwan would front run growth.
Rally doesn't indicate return of bulls: Shankar Sharma
Shankar Sharma of First Global continues to believe the markets are still seeing a bear rally as he sees no economic or fundamental factors to indicate the end of the bear phase. He added that poor trade data in India could drive equity markets lower. "Chances that this is the emergence of a bull market is very negligible," he said. Sharma is not surprised by the quantum of this rally given last year's fall. The global rally, he said, is drawing to a close and added that there won't be much incremental gains from these levels. “It‘s presumptuous to assume global economy has turned around.”
Sharma sees more pain in global banking and expects further bad news. He said there would be a decisive move in either direction in the near-term and does not rule out the possibility of the markets going back to its lows in 2009.
Sharma sees more pain in global banking and expects further bad news. He said there would be a decisive move in either direction in the near-term and does not rule out the possibility of the markets going back to its lows in 2009.
India up, despite weak Asia
The markets continued their upward trend as buying activity intensified during the final hour of trade. The BSE-Sensex closed with gains of around 190 points, while the NSE-Nifty closed higher by about 60 points. The BSE mid-cap and small-cap indices ended the day in the green as well. While buying activity was witnessed in stocks from the consumer durables, banking and capital goods sectors, stocks from the software and FMCG bore the brunt of profit booking.
As regards other Asian markets, they ended a mixed bag. The European indices are currently trading in the green. Rupee was trading at 49.83 against the US dollar at 3.30 pm IST.
FMCG stocks ended mixed. While P&G, Dabur and Colgate garnered investors interest, HUL and GSK Consumers were at the receiving end. GSK Consumers announced its results today. The company’s topline grew by 31% YoY during 1QFY09. Its operating margins improved by 2.3% during the quarter mainly because all the major cost heads other than input costs grew at rates lower than the topline. The bottomline grew by 48% YoY aided by robust operating margins growth coupled with lower interest and depreciation cost.
Rating agency Crisil has a warning for the Indian banking sector. It expects some deterioration in the balance sheets of Indian banks’ on account of a rise in the non-performing assets (NPAs) going forward. The agency believes that gross NPAs will rise to 5% of total advances by March 2011, which would roughly amount to Rs 1.9 trillion. This would mean a nearly threefold rise in the delinquencies for the sector. It expects that this rise in delinquencies will largely be reported among corporate loans which constitute about 56% of banks total advances and 60% of total loans delinquencies. On the retail loans side, Crisil expects the NPAs to rise to 4% by March 2011 as compared to 3.2% in March 2008. However, the rating agency believes that due to the strong capitalisation of the Indian banks, they would be in a comfortable position to handle this rise in NPAs. Banking stocks ended the day on a positive note.
As per a leading business daily, foreign direct investment (FDI) into India is expected to be at least US$ 40 bn in FY10 on the back of a positive outlook for India. It may be noted that the FDI during for FY09 was likely around US$ 37.5 bn including the reinvestment by foreign firms. As per joint secretary Mr. Gopal Krishna, even though some investment in FY10 would be delayed, the overall outlook is positive.
As regards other Asian markets, they ended a mixed bag. The European indices are currently trading in the green. Rupee was trading at 49.83 against the US dollar at 3.30 pm IST.
FMCG stocks ended mixed. While P&G, Dabur and Colgate garnered investors interest, HUL and GSK Consumers were at the receiving end. GSK Consumers announced its results today. The company’s topline grew by 31% YoY during 1QFY09. Its operating margins improved by 2.3% during the quarter mainly because all the major cost heads other than input costs grew at rates lower than the topline. The bottomline grew by 48% YoY aided by robust operating margins growth coupled with lower interest and depreciation cost.
Rating agency Crisil has a warning for the Indian banking sector. It expects some deterioration in the balance sheets of Indian banks’ on account of a rise in the non-performing assets (NPAs) going forward. The agency believes that gross NPAs will rise to 5% of total advances by March 2011, which would roughly amount to Rs 1.9 trillion. This would mean a nearly threefold rise in the delinquencies for the sector. It expects that this rise in delinquencies will largely be reported among corporate loans which constitute about 56% of banks total advances and 60% of total loans delinquencies. On the retail loans side, Crisil expects the NPAs to rise to 4% by March 2011 as compared to 3.2% in March 2008. However, the rating agency believes that due to the strong capitalisation of the Indian banks, they would be in a comfortable position to handle this rise in NPAs. Banking stocks ended the day on a positive note.
As per a leading business daily, foreign direct investment (FDI) into India is expected to be at least US$ 40 bn in FY10 on the back of a positive outlook for India. It may be noted that the FDI during for FY09 was likely around US$ 37.5 bn including the reinvestment by foreign firms. As per joint secretary Mr. Gopal Krishna, even though some investment in FY10 would be delayed, the overall outlook is positive.
Banking stocks lead the rally
During the previous two hours of trade, the indices surged upwards as buying activity intensified amongst the index heavyweights. Currently stocks from the banking and capital goods space are leading the pack of gainers, while stocks from the IT and FMCG space are trading marginally lower. The overall advance to decline ratio is poised at 1.8 to 1 on the BSE. The BSE Sensex and the NSE Nifty are trading higher by 170 points and 50 points respectively. The BSE Midcap and Smallcap indices are trading higher, up by 1.5% and 1.75 respectively. The rupee is trading at 49.76 to the dollar. As per a leading business daily, on account of rise in tobacco prices by nearly 50% YoY, ITC has increased its cigarettes prices. The prices of Delhi tobacco increased from Rs 1,200 to Rs 1,400 per 20 kg to Rs 1,300 to Rs 2,000 currently. The company has increased price of its largest selling Gold Flake brand from Rs 40 to Rs 44 per pack. However, the company has not taken a hike in its other brands. ITC generates nearly 64% of its revenues from cigarettes division. While the price hike would aid the company in offsetting the higher input costs to some extent, pressure on volume growth will remain. The stock of ITC is trading flat on the bourses currently.
Banking stocks are trading firm led by Axis Bank, Yes Bank and HDFC Bank. HDFC Bank announced its 4QFY09 and FY09 results yesterday. The bank’s interest income has increased by 62% YoY on back of 48% YoY growth in the advances during FY09. The advances were mainly higher on account of integration with Centurion Bank of Punjab. Net interest margin marginally dropped to 4.2% (down 0.2%) due to fall in proportion of current and savings account. During the end of the year, the net non-performing assets (NPA’s) have increased to 0.6% compared to 0.2% a year earlier. This has resulted in lower growth of net profit by 41% YoY during FY09.
Banking stocks are trading firm led by Axis Bank, Yes Bank and HDFC Bank. HDFC Bank announced its 4QFY09 and FY09 results yesterday. The bank’s interest income has increased by 62% YoY on back of 48% YoY growth in the advances during FY09. The advances were mainly higher on account of integration with Centurion Bank of Punjab. Net interest margin marginally dropped to 4.2% (down 0.2%) due to fall in proportion of current and savings account. During the end of the year, the net non-performing assets (NPA’s) have increased to 0.6% compared to 0.2% a year earlier. This has resulted in lower growth of net profit by 41% YoY during FY09.
News Capsules
The headline inflation rate marginally rose to 0.26 per cent for the week ended April 11 this year, mainly because of the rise in prices of
manufactured products. The inflation rate, as measured by the wholesale price index (WPI), was 0.18 per cent last week and 7.95 per cent in the
corresponding week in 2008.
Reliance Industries Ltd (RIL), India's largest company by market capitalisation, reported a quarterly net profit fall of 1 per cent on the back of
falling global crude prices that impacted product prices and refining margins. The company posted a net profit (excluding exceptional items) of
Rs 3,874 crore for its fourth quarter ended March, against Rs 3,912 crore a year ago.
Reliance Petroleum Limited (RPL) has posted a net profit of Rs 84 crore on net sales of Rs 3,678 crore for the fourth quarter ended March 31,
2009. The figures of the previous year were not available, as its 580,000 barrels of oil per day refinery in Jamnagar commenced commercial
operations from March 15.
Reliance Power has posted a net profit of Rs 244.5 crore for the year ended March 2009, compared with Rs 85.37 crore in the previous year.
Subhash Chandra promoted firm Zee News said, its consolidated net profit for the fourth quarter ended March 31, has dipped by 42.67 per cent
to Rs 8.76 crore.
Reliance Infrastructure said its net profit rose 14.85 per cent to Rs.1,353.23 crore in 2008-09 from Rs.1,178.21 crore the year before.
Maharashtra Seamless, a pipe making firm and part of the DP Jindal group, said its net profit in the fourth quarter ended March 31, 2009, grew
19.57 per cent to Rs 64.63 crore over the same period a year ago.
Bajaj Hindusthan said it had reported 89.15 per cent jump in net profit at Rs 81.39 crore for the second quarter ended March 2009. The firm had
a net profit of Rs 43.03 crore in the March quarter of the last fiscal.
LIC Housing Finance said its net profit rose by 33.14 per cent to Rs 157.55 crore in the fourth quarter ended March 31, 2009.
Sobha Developers is firming up plans to launch a high-end apartment project in the city. The project, which would carry a price tag of about Rs
6,000 per sq ft, will be the first luxury apartment project from Sobha after crisis hit the Indian real estate sector.
Bata, India’s leading footwear retailer and manufacturer, has reported 6.35 per cent drop in its net profit for the quarter ended March 31, 2009, to
Rs 10.33 crore, over the corresponding period last year.
KEC International, an RPG Group company and a global player in power transmission EPC business, has bagged two orders worth Rs 95 crore
in Mozambique and Namibia.
manufactured products. The inflation rate, as measured by the wholesale price index (WPI), was 0.18 per cent last week and 7.95 per cent in the
corresponding week in 2008.
Reliance Industries Ltd (RIL), India's largest company by market capitalisation, reported a quarterly net profit fall of 1 per cent on the back of
falling global crude prices that impacted product prices and refining margins. The company posted a net profit (excluding exceptional items) of
Rs 3,874 crore for its fourth quarter ended March, against Rs 3,912 crore a year ago.
Reliance Petroleum Limited (RPL) has posted a net profit of Rs 84 crore on net sales of Rs 3,678 crore for the fourth quarter ended March 31,
2009. The figures of the previous year were not available, as its 580,000 barrels of oil per day refinery in Jamnagar commenced commercial
operations from March 15.
Reliance Power has posted a net profit of Rs 244.5 crore for the year ended March 2009, compared with Rs 85.37 crore in the previous year.
Subhash Chandra promoted firm Zee News said, its consolidated net profit for the fourth quarter ended March 31, has dipped by 42.67 per cent
to Rs 8.76 crore.
Reliance Infrastructure said its net profit rose 14.85 per cent to Rs.1,353.23 crore in 2008-09 from Rs.1,178.21 crore the year before.
Maharashtra Seamless, a pipe making firm and part of the DP Jindal group, said its net profit in the fourth quarter ended March 31, 2009, grew
19.57 per cent to Rs 64.63 crore over the same period a year ago.
Bajaj Hindusthan said it had reported 89.15 per cent jump in net profit at Rs 81.39 crore for the second quarter ended March 2009. The firm had
a net profit of Rs 43.03 crore in the March quarter of the last fiscal.
LIC Housing Finance said its net profit rose by 33.14 per cent to Rs 157.55 crore in the fourth quarter ended March 31, 2009.
Sobha Developers is firming up plans to launch a high-end apartment project in the city. The project, which would carry a price tag of about Rs
6,000 per sq ft, will be the first luxury apartment project from Sobha after crisis hit the Indian real estate sector.
Bata, India’s leading footwear retailer and manufacturer, has reported 6.35 per cent drop in its net profit for the quarter ended March 31, 2009, to
Rs 10.33 crore, over the corresponding period last year.
KEC International, an RPG Group company and a global player in power transmission EPC business, has bagged two orders worth Rs 95 crore
in Mozambique and Namibia.
Pre Market Outlook 24 Apr
The market is likely to open on a flat note with a negative bias taking cues from global market. Political uncertainty, with polling for India's 15th Lok Sabha underway, may lead to volatile swings on the bourses. Asian stocks advanced for the secondconsecutive day, as gains by financial companies countered concern the global recession is hurting earnings. U.S. stocks rose in volatile trade on Thursday as better-than-expected results from several regional banks lifted financial shares, overshadowing disappointing economic data and anemic outlooks from economic bellwethers like United Parcel Service. The Indian ADRs also ended on a positive note. European shares ended lower on Thursday in a choppy session as investors digested a raft of earnings news, banks retreated from earlier gains and U.S. home sales data disappointed investors.
According to provisional data on NSE, foreign funds bought stocks worth a net Rs. 241.13 crore on Thursday, 23 April 2009. Domestic funds bought shares worth a net Rs. 425.83 crore on that day.
According to provisional data on NSE, foreign funds bought stocks worth a net Rs. 241.13 crore on Thursday, 23 April 2009. Domestic funds bought shares worth a net Rs. 425.83 crore on that day.
Views on RIL Results
Reliance Industries' Q4 FY09 net profit was down by 1% at Rs 3,874 crore as compared to Rs 3,912 crore in the same period last year. Q4 turnover was down 24% at Rs 28,362 crore as against Rs 37,286 crore year-on-year.
Commenting on the company's numbers, Amitabh Chakraborty, President (Equity), Religare Capital Markets, said the numbers came in as a surprise as they were expecting above Rs 3,600 crore profit figure. He said USD 12-10 GRM is largely inline with Religare's numbers but slightly above market numbers. According to him, the about 14% margin on the petchem side is primarily because of the product mix, which is quite healthy.
Deepak Pareek, Research Analyst, Angel Broking, said Q4 numbers were inline with their estimates. "We had anticipated a profitability of Rs 3,787 crore for the company before any sort of extraordinary item."
SP Tulsian of sptulsian.com said the increase in bottomline to Rs 3,874 crore has come in as a surprise. He attributes this to the sharp increase in other income by about Rs 700 crore.
Deven Choksey of KR Choksey Securities too shares Tulsian's view that the increase in bottomline could be due to the rise in other income. "At the end of Q3, they had a surplus of about Rs 28,600 crore. From that, we were expecting other income in excess of Rs 700 crore. This figure is due to smart management of money and can even be around Rs 1,000 crore. The advance tax numbers have also contributed to a higher bottomline."
However, Rohit Nagraj, Research Analyst, Prabhudas Liladher, feels the surprise has come in from the petrochemicals segment. "Other income has come close to about Rs 993 crore, so the performance is somewhat mirrored to what was delivered in the third quarter."
On gross refining margins:
Choksey feels gross refining margins of USD 9.9 per barrel is slightly lower than expectations. "If you look at January-February Singapore GRMs it was USD 6.6 per barrel and in March it was around USD 4 per barrel. That gives an average of about USD 5.5 per barrel."
Pareek had anticipated refining margins of USD 10.5 per barrel, which have come slightly lower than their expectations. "The shortfall is largely fulfilled by a higher than expected petrochemical margins."
FY10 estimates:
Tulsian estimates an average production of 40 million cubic metre per day from the KG Basin. "By March 2010 production should rise to about 80 million. Taking an average production of 40 million cubic metre, the estimated turnover from KG Basin could be Rs 11,750 crore. This profit will be tax-free and could contribute about Rs 6,000-6,250 crore to the bottomline."
According to Tulsian, the estimated profit for FY10 is about Rs 23,000-24,000 crore which translates into an EPS of Rs 141-144. "I have also taken into account a slight drop in profitability because of increase in tax liability, since the Reliance refinery, which all along has been an export-oriented unit, has lost its EOU status. The tax liability could increase by about Rs 800-1,000 crore for RIL on its existing operations."
Pareek estimates an EPS of around Rs 130.9 based on FY10 bottomline.
How will the stock trade going forward?
Tulsian sees the stock touching Rs 2,100 in the next six months. "As production progresses from KG Basin and as we come to know about the performance of the new refinery it will definitely re-rate the stock. So, it can take a target of Rs 2,100."
Commenting on the company's numbers, Amitabh Chakraborty, President (Equity), Religare Capital Markets, said the numbers came in as a surprise as they were expecting above Rs 3,600 crore profit figure. He said USD 12-10 GRM is largely inline with Religare's numbers but slightly above market numbers. According to him, the about 14% margin on the petchem side is primarily because of the product mix, which is quite healthy.
Deepak Pareek, Research Analyst, Angel Broking, said Q4 numbers were inline with their estimates. "We had anticipated a profitability of Rs 3,787 crore for the company before any sort of extraordinary item."
SP Tulsian of sptulsian.com said the increase in bottomline to Rs 3,874 crore has come in as a surprise. He attributes this to the sharp increase in other income by about Rs 700 crore.
Deven Choksey of KR Choksey Securities too shares Tulsian's view that the increase in bottomline could be due to the rise in other income. "At the end of Q3, they had a surplus of about Rs 28,600 crore. From that, we were expecting other income in excess of Rs 700 crore. This figure is due to smart management of money and can even be around Rs 1,000 crore. The advance tax numbers have also contributed to a higher bottomline."
However, Rohit Nagraj, Research Analyst, Prabhudas Liladher, feels the surprise has come in from the petrochemicals segment. "Other income has come close to about Rs 993 crore, so the performance is somewhat mirrored to what was delivered in the third quarter."
On gross refining margins:
Choksey feels gross refining margins of USD 9.9 per barrel is slightly lower than expectations. "If you look at January-February Singapore GRMs it was USD 6.6 per barrel and in March it was around USD 4 per barrel. That gives an average of about USD 5.5 per barrel."
Pareek had anticipated refining margins of USD 10.5 per barrel, which have come slightly lower than their expectations. "The shortfall is largely fulfilled by a higher than expected petrochemical margins."
FY10 estimates:
Tulsian estimates an average production of 40 million cubic metre per day from the KG Basin. "By March 2010 production should rise to about 80 million. Taking an average production of 40 million cubic metre, the estimated turnover from KG Basin could be Rs 11,750 crore. This profit will be tax-free and could contribute about Rs 6,000-6,250 crore to the bottomline."
According to Tulsian, the estimated profit for FY10 is about Rs 23,000-24,000 crore which translates into an EPS of Rs 141-144. "I have also taken into account a slight drop in profitability because of increase in tax liability, since the Reliance refinery, which all along has been an export-oriented unit, has lost its EOU status. The tax liability could increase by about Rs 800-1,000 crore for RIL on its existing operations."
Pareek estimates an EPS of around Rs 130.9 based on FY10 bottomline.
How will the stock trade going forward?
Tulsian sees the stock touching Rs 2,100 in the next six months. "As production progresses from KG Basin and as we come to know about the performance of the new refinery it will definitely re-rate the stock. So, it can take a target of Rs 2,100."
Wall Street ends higher; Dow ends up 70 pts
The US markets saw a late rebound led by financials. Expectations about the white paper on the US bank stress test and some better-than-expected earnings helped offset gloomy economic data.
Most bank stocks rallied as participants prepare for the treasury's announcement regarding bank stress test measures. The white paper will be released today and final results to be released on May 4. Bank of America rose 6.8%; JP Morgan added 4.1% and Wells Fargo shot up 11%. But Citigroup slipped 1.5%. Also Read - How ADRs performed
Tech major Microsoft rose as much as 5.9% in extended trading after reporting a smaller drop in third-quarter profit than anticipated and predicting bigger cost savings this year. Excluding one-time items, it reported a profit of 39 cents a share in its fiscal third quarter, on a top line of $ 13.65 billion. Net income fell to fell to $ 2.98 billion, or 33 cents a share.
It has also withdrawn its profit forecasts in January due to the uncertain economy and said it expected weakness in its markets to continue through at least the next quarter. It reaffirmed plans to eliminate as many as 5,000 jobs by the middle of 2010, with the goal of saving $ 1.5 billion annually in operating expenses.
American Express reported earnings that declined from last year as the company struggled with higher bad loans, but the results easily outstripped analysts' estimates, sending its stock up by 5% in late trading. Profit from continuing operations in the first quarter declined 58% to $ 443 million, or 32 cents a share, from $ 1 billion, or 89 cents, a year earlier. Consolidated revenue fell 18% to $ 5.9 billion, but consolidated expenses fell 22% to $ 3.6 billion, helped by a restructuring plan.
In economic news, existing-home sales dropped 3% to a $ 4.57 million annual rate in March, lower than the 4.7% pace expected and February's downwardly revised $ 4.71 million rate.
Meanwhile, strains of concern in the economic data in US weekly jobless claims rise in-line with expectations while existing home sales slide more than expected. Initial jobless claims rose by 27,000 last week. The four-week moving average lowered slightly but continuing claims shot up to a record $ 6.137 million.
The Dow rose 70.49 points, or 0.9%, to 7,957.06. The S&P 500 index added 8.37 points, or 1%, to 851.92, and the Nasdaq composite index rose 6.09 points, or 0.4%, to 1,652.21.
Most bank stocks rallied as participants prepare for the treasury's announcement regarding bank stress test measures. The white paper will be released today and final results to be released on May 4. Bank of America rose 6.8%; JP Morgan added 4.1% and Wells Fargo shot up 11%. But Citigroup slipped 1.5%. Also Read - How ADRs performed
Tech major Microsoft rose as much as 5.9% in extended trading after reporting a smaller drop in third-quarter profit than anticipated and predicting bigger cost savings this year. Excluding one-time items, it reported a profit of 39 cents a share in its fiscal third quarter, on a top line of $ 13.65 billion. Net income fell to fell to $ 2.98 billion, or 33 cents a share.
It has also withdrawn its profit forecasts in January due to the uncertain economy and said it expected weakness in its markets to continue through at least the next quarter. It reaffirmed plans to eliminate as many as 5,000 jobs by the middle of 2010, with the goal of saving $ 1.5 billion annually in operating expenses.
American Express reported earnings that declined from last year as the company struggled with higher bad loans, but the results easily outstripped analysts' estimates, sending its stock up by 5% in late trading. Profit from continuing operations in the first quarter declined 58% to $ 443 million, or 32 cents a share, from $ 1 billion, or 89 cents, a year earlier. Consolidated revenue fell 18% to $ 5.9 billion, but consolidated expenses fell 22% to $ 3.6 billion, helped by a restructuring plan.
In economic news, existing-home sales dropped 3% to a $ 4.57 million annual rate in March, lower than the 4.7% pace expected and February's downwardly revised $ 4.71 million rate.
Meanwhile, strains of concern in the economic data in US weekly jobless claims rise in-line with expectations while existing home sales slide more than expected. Initial jobless claims rose by 27,000 last week. The four-week moving average lowered slightly but continuing claims shot up to a record $ 6.137 million.
The Dow rose 70.49 points, or 0.9%, to 7,957.06. The S&P 500 index added 8.37 points, or 1%, to 851.92, and the Nasdaq composite index rose 6.09 points, or 0.4%, to 1,652.21.
Thursday, April 23, 2009
Post Market Update
Market opened marginally on the positive side & remained northward biased. As we have mentioned in our yesterday’s newsletter that index is forming flag pattern that is continues
in nature & it broke out from the same today. Interestingly, Index majors like reliance & ongc were also forming the same pattern, which confirms the positive move ahead. We witnessed buying across the board but the cash market volume was marginally low in comparison to last week’s average. Market breadth was also on the positive side. Technically, 3550+ level is likely to tested in the near term.
The BSE SENSEX closed higher by 317.45 points at 11,134.99 and NSE Nifty ended up by 93.40 points at 3,423.70. BSE Mid Caps and Small Caps closed with gains of 51.40 and 37.10 points at 3,534.18 and 3,999.78 respectively. The BSE Sensex touched intraday high of 11,203.28 and intraday low of 10,758.97. Among the Sensex pack 27 stocks ended in red territory and 3 in green. The market breadth indicating the overall health of the market remained positive as 1441 stocks closed in green while 1056 stocks closed in red and 103
stocks remained unchanged in BSE. The S&P CNX Nifty was up by 93.40 points or 2.8% to 3423.70. The NSE turnover was up Rs.13577.00 crore from last trading session’s Rs.15160.41 crore.
in nature & it broke out from the same today. Interestingly, Index majors like reliance & ongc were also forming the same pattern, which confirms the positive move ahead. We witnessed buying across the board but the cash market volume was marginally low in comparison to last week’s average. Market breadth was also on the positive side. Technically, 3550+ level is likely to tested in the near term.
The BSE SENSEX closed higher by 317.45 points at 11,134.99 and NSE Nifty ended up by 93.40 points at 3,423.70. BSE Mid Caps and Small Caps closed with gains of 51.40 and 37.10 points at 3,534.18 and 3,999.78 respectively. The BSE Sensex touched intraday high of 11,203.28 and intraday low of 10,758.97. Among the Sensex pack 27 stocks ended in red territory and 3 in green. The market breadth indicating the overall health of the market remained positive as 1441 stocks closed in green while 1056 stocks closed in red and 103
stocks remained unchanged in BSE. The S&P CNX Nifty was up by 93.40 points or 2.8% to 3423.70. The NSE turnover was up Rs.13577.00 crore from last trading session’s Rs.15160.41 crore.
Bulk Deals Apr 23
K Sera Sera 23/04/2009 S BASMATI SECURITIES PVT LTD 195,000 11.05
K Sera Sera 23/04/2009 B BASMATI SECURITIES PVT LTD 400,000 11.00
Educomp Solu 23/04/2009 S C D INTEGRATED SERVICES LTD. 104,768 2,496.55
Educomp Solu 23/04/2009 S SMC GLOBAL SECURITIES LTD. 78,390 2,513.95
Educomp Solu 23/04/2009 B SMC GLOBAL SECURITIES LTD. 97,254 2,488.75
Educomp Solu 23/04/2009 B C D INTEGRATED SERVICES LTD. 104,768 2,495.34
RelincIndlIn 23/04/2009 B C D INTEGRATED SERVICES LTD. 183,613 606.16
RelincIndlIn 23/04/2009 S GENUINE STOCK BROKERS PVT LTD 138,411 608.41
RelincIndlIn 23/04/2009 S C D INTEGRATED SERVICES LTD. 183,613 606.98
RelincIndlIn 23/04/2009 B GENUINE STOCK BROKERS PVT LTD 138,390 607.57
VesuvusIndia 23/04/2009 S HDFC ASSET MANAGEMENT COMPANT LTD 106,137 102.02
Man Alumin 23/04/2009 S TALISMAN SECURITIES PRIVATE LIMITED 17,850 34.54
Man Alumin 23/04/2009 B SIDDHARTHA HOLDINGS 97,129 34.25
Shriram Trns 23/04/2009 B RELIANCE CAPITAL TRUSTEE CO LTD A/C RELIANCE TAX SAVER ELSS 1,375,419 200.00
Indowind Ene 23/04/2009 S ABN AMRO BANK N.V. LONDON BRANCH 1,000,000 20.67
Birla Power 23/04/2009 S LOTUS GLOBAL INVESTMENTS LIMITED 900,000 17.18
Birla Power 23/04/2009 B SHEARSONINVESTMENT&TRADINGCOPVTLTD 900,000 17.18
Shriram Trns 23/04/2009 S CITICORP FINANCE (INDIA) LIMITED 7,811,986 200.01
Shriram Trns 23/04/2009 B RELIANCE CAPITAL TRUSTEE CO LTD A/C RELIANCE GROWTH FUND 2,500,000 200.00
Shriram Trns 23/04/2009 B RELIANCE CAPITAL TRUSTEE CO LTD A/C RELIANCE EQUITY FUND 1,500,000 200.00
K Sera Sera 23/04/2009 B BASMATI SECURITIES PVT LTD 400,000 11.00
Educomp Solu 23/04/2009 S C D INTEGRATED SERVICES LTD. 104,768 2,496.55
Educomp Solu 23/04/2009 S SMC GLOBAL SECURITIES LTD. 78,390 2,513.95
Educomp Solu 23/04/2009 B SMC GLOBAL SECURITIES LTD. 97,254 2,488.75
Educomp Solu 23/04/2009 B C D INTEGRATED SERVICES LTD. 104,768 2,495.34
RelincIndlIn 23/04/2009 B C D INTEGRATED SERVICES LTD. 183,613 606.16
RelincIndlIn 23/04/2009 S GENUINE STOCK BROKERS PVT LTD 138,411 608.41
RelincIndlIn 23/04/2009 S C D INTEGRATED SERVICES LTD. 183,613 606.98
RelincIndlIn 23/04/2009 B GENUINE STOCK BROKERS PVT LTD 138,390 607.57
VesuvusIndia 23/04/2009 S HDFC ASSET MANAGEMENT COMPANT LTD 106,137 102.02
Man Alumin 23/04/2009 S TALISMAN SECURITIES PRIVATE LIMITED 17,850 34.54
Man Alumin 23/04/2009 B SIDDHARTHA HOLDINGS 97,129 34.25
Shriram Trns 23/04/2009 B RELIANCE CAPITAL TRUSTEE CO LTD A/C RELIANCE TAX SAVER ELSS 1,375,419 200.00
Indowind Ene 23/04/2009 S ABN AMRO BANK N.V. LONDON BRANCH 1,000,000 20.67
Birla Power 23/04/2009 S LOTUS GLOBAL INVESTMENTS LIMITED 900,000 17.18
Birla Power 23/04/2009 B SHEARSONINVESTMENT&TRADINGCOPVTLTD 900,000 17.18
Shriram Trns 23/04/2009 S CITICORP FINANCE (INDIA) LIMITED 7,811,986 200.01
Shriram Trns 23/04/2009 B RELIANCE CAPITAL TRUSTEE CO LTD A/C RELIANCE GROWTH FUND 2,500,000 200.00
Shriram Trns 23/04/2009 B RELIANCE CAPITAL TRUSTEE CO LTD A/C RELIANCE EQUITY FUND 1,500,000 200.00
Pre-Market Outlook 23 Apr
The market is likely to open on a flat note taking mixed cue from global markets. Reliance Industries is all set to announce its March quarter result today. However stock specefic activity will be high in companies that will be announcing their March 2009 quarterly results. Asian stocks fluctuated, as finance companies dropped after Morgan Stanley reported a wider-than- forecast loss. Automakers advanced. The Dow and S&P fell on Wednesday after Morgan Stanley revived concerns about the banking sector and the wider economy after it posted its second straight quarterly loss and slashed its dividend. The Indian ADRs ended on a mixed note.
According to provisional data on NSE, foreign funds sold stocks worth a net Rs. XX0.83 crore on Tuesday, 21 April 2009. Domestic funds bought shares worth a net Rs. 82.25 crore on that day.
According to provisional data on NSE, foreign funds sold stocks worth a net Rs. XX0.83 crore on Tuesday, 21 April 2009. Domestic funds bought shares worth a net Rs. 82.25 crore on that day.
Wednesday, April 22, 2009
NEWS UPDATES
􀂾 JSW Steel plans to invest Rs 3,000 crore in its India projects in 2009-10, a top company official said today.
􀂾 BGR Energy bagged a contract worth Rs 15.5 crore from Maithon Power at Jharkhand for engineering related works.
􀂾 Gail India has proposed to invest Rs 8,000 crore in laying a gas pipeline from Vijaywada in Andhra Pradesh to Vijaipur in Madhya Pradesh.
Market opened on the positive note but remained under pressure throughout the day. It retraced the index below 3300 levels but bounced back in the end. Banking, Reality & capital
goods were beaten down badly in the today's session & the market breadth was also southward inclined. Technically, index is forming flag pattern which is continuation in nature
so breakout from it with strong volume surge will lead the index to test 3500+ levels in the near term. The bottom of the pattern may test 3240 levels so the possibility of downside is
still there.
AsP pOerS tThe M pAroRviKsiEonTa l figures, the BSE 30-share Sensex was down 72.22 points or 0.66% to 10,825.89. At the days high of 11,036.25, the Sensex rose 138.13 points in mid-morning trade. At the days low of 10,715.66, the Sensex fell 182.45 points in afternoon trade. The BSE clocked a turnover of Rs 5,003 crore, lower than Rs 5,109.37 crore on Tuesday 21 Apr09. The market breadth, indicating the overall health of the market, was weak in contrast to a strong breadth earlier in the day. On BSE, 1,097 stocks advanced as compared to 1,439 that
declined. A total of 58 shares remained unchanged. The breadth was much stronger earlier in the day. The S&P CNX Nifty was down 30.45 points or 0.9% to 3,334.85 as per the provisional figures. The NSE turnover was up Rs.13577.00 crore from last trading session’s Rs.15160.41 crore.
EXCLUSION OF FUTURES AND OPTIONS CONTRACTS IN 50 SECURITIES
Contracts for new expiry months in the following securities will not be available for trading on expiry of existing contract months.
Sr No Symbol Security Sr No Symbol Security
1 3IINFOTECH 3i Infotech Limited
2 ALOKTEXT Alok Industries Limited
3 AMTEKAUTO Amtek Auto Ltd
4 APTECHT Aptech Limited
5 ARVIND Arvind Limited
6 BALAJITELE Balaji Telefilms Ltd.
7 BALLARPUR Ballarpur Industries Limited
8 BATAINDIA Bata India Ltd
9 BIRLACORPN Birla Corporation Ltd
10 BOMDYEING Bombay Dyeing & Mfg Co. Ltd
11 CENTRALBK Central Bank of India
12 DCB Development Credit Bank Limited
13 EDELWEISS Edelweiss Capital Limited
14 ESCORTS Escorts Ltd
15 EVERONN Everonn Systems India Limited
16 GDL Gateway Distriparks Limited
17 GITANJALI Gitanjali Gems Limited
18 GNFC Gujarat Narmada Valley Fertilizer Co. Ltd.
19 GUJALKALI Gujarat Alkalies and Chemicals Ltd.
20 HAVELLS Havells India Limited
21 HCL-INSYS HCL Infosystems Ltd
22 HINDOILEXP Hindustan Oil Exploration Co. Ltd
23 IRB IRB Infrastructure Developers Limited
24 JETAIRWAYS Jet Airways (India) Ltd.
25 JSL JSL Limited
26 KESORAMIND Kesoram Industries Ltd.
27 KSK KSK Energy Ventures Limited
28 KTKBANK The Karnataka Bank Limited
29 LAXMIMACH Lakshmi Machine Works Ltd.
30 MAHLIFE Mahindra Lifespace Developers Limited
31 MAHSEAMLES Maharashtra Seamless Ltd
32 MINDTREE MindTree Limited
33 MONNETISPA Monnet Ispat Ltd
34 MRF MRF Ltd.
35 NBVENTURES Nava Bharat Ventures Limited
36 NDTV New Delhi Television Limited
37 NETWORK18 Network 18 Fincap Limited
38 NIITLTD NIIT Limited
39 PENINLAND Peninsula Land Limited
40 RAJESHEXPO Rajesh Exports Ltd.
41 RIIL Reliance Industrial Infrastructure Limited
42 SKUMARSYNF S. Kumars Nationwide Ltd
43 SREINTFIN SREI Infrastructure Finance Limited
44 SRF SRF Ltd.
45 STAR Strides Arcolab Limited
46 THERMAX Thermax Ltd
47 TORNTPOWER Torrent Power Limited
48 TVSMOTOR TVS Motor Company Limited
49 UTVSOF UTV Software Communications Limited
50 WOCKPHARMA Wockhardt Limited
However, the existing unexpired contracts for the month of and April, May and June 2009 would continue to be available for trading till their respective expiry and new strikes would also be introduced in these existing contract months. This shall be effective from May 4, 2009.
Eligibility criteria of stocks on which stock options and single stock futures could be introduced
As a surveillance measure SEBI has required the Exchanges to use the following stock’s selection criteria with immediate effect:
1) The eligibility criteria for inclusion of scrips in F&O segment shall be as under:
• The stock shall be chosen from amongst the top 500 stocks in terms of average daily market capitalization and average daily traded value in the previous six months on a rolling basis.
• The stock’s median quarter sigma order size over the last six months shall be not less than Rs. 5 lakhs.
• The market wide position limit (MWPL) in the stock shall not be less than Rs. 100 crores.
2) The criteria for exclusion of scrips in F&O segment shall be as under:
For an existing F&O stock, the continued eligibility criteria is that market wide position limit in the stock shall not be less than Rs. 60 crores and stock’s median quarter-sigma order size over the last six months shall be not less than Rs. 2 lakh. The stock shall be excluded if the above criteria is not fulfilled for consecutively three months.
3) Further, once the stock is excluded from the F&O list, it shall not be considered for re-inclusion for a period of one year.
Sr No Symbol Security Sr No Symbol Security
1 3IINFOTECH 3i Infotech Limited
2 ALOKTEXT Alok Industries Limited
3 AMTEKAUTO Amtek Auto Ltd
4 APTECHT Aptech Limited
5 ARVIND Arvind Limited
6 BALAJITELE Balaji Telefilms Ltd.
7 BALLARPUR Ballarpur Industries Limited
8 BATAINDIA Bata India Ltd
9 BIRLACORPN Birla Corporation Ltd
10 BOMDYEING Bombay Dyeing & Mfg Co. Ltd
11 CENTRALBK Central Bank of India
12 DCB Development Credit Bank Limited
13 EDELWEISS Edelweiss Capital Limited
14 ESCORTS Escorts Ltd
15 EVERONN Everonn Systems India Limited
16 GDL Gateway Distriparks Limited
17 GITANJALI Gitanjali Gems Limited
18 GNFC Gujarat Narmada Valley Fertilizer Co. Ltd.
19 GUJALKALI Gujarat Alkalies and Chemicals Ltd.
20 HAVELLS Havells India Limited
21 HCL-INSYS HCL Infosystems Ltd
22 HINDOILEXP Hindustan Oil Exploration Co. Ltd
23 IRB IRB Infrastructure Developers Limited
24 JETAIRWAYS Jet Airways (India) Ltd.
25 JSL JSL Limited
26 KESORAMIND Kesoram Industries Ltd.
27 KSK KSK Energy Ventures Limited
28 KTKBANK The Karnataka Bank Limited
29 LAXMIMACH Lakshmi Machine Works Ltd.
30 MAHLIFE Mahindra Lifespace Developers Limited
31 MAHSEAMLES Maharashtra Seamless Ltd
32 MINDTREE MindTree Limited
33 MONNETISPA Monnet Ispat Ltd
34 MRF MRF Ltd.
35 NBVENTURES Nava Bharat Ventures Limited
36 NDTV New Delhi Television Limited
37 NETWORK18 Network 18 Fincap Limited
38 NIITLTD NIIT Limited
39 PENINLAND Peninsula Land Limited
40 RAJESHEXPO Rajesh Exports Ltd.
41 RIIL Reliance Industrial Infrastructure Limited
42 SKUMARSYNF S. Kumars Nationwide Ltd
43 SREINTFIN SREI Infrastructure Finance Limited
44 SRF SRF Ltd.
45 STAR Strides Arcolab Limited
46 THERMAX Thermax Ltd
47 TORNTPOWER Torrent Power Limited
48 TVSMOTOR TVS Motor Company Limited
49 UTVSOF UTV Software Communications Limited
50 WOCKPHARMA Wockhardt Limited
However, the existing unexpired contracts for the month of and April, May and June 2009 would continue to be available for trading till their respective expiry and new strikes would also be introduced in these existing contract months. This shall be effective from May 4, 2009.
Eligibility criteria of stocks on which stock options and single stock futures could be introduced
As a surveillance measure SEBI has required the Exchanges to use the following stock’s selection criteria with immediate effect:
1) The eligibility criteria for inclusion of scrips in F&O segment shall be as under:
• The stock shall be chosen from amongst the top 500 stocks in terms of average daily market capitalization and average daily traded value in the previous six months on a rolling basis.
• The stock’s median quarter sigma order size over the last six months shall be not less than Rs. 5 lakhs.
• The market wide position limit (MWPL) in the stock shall not be less than Rs. 100 crores.
2) The criteria for exclusion of scrips in F&O segment shall be as under:
For an existing F&O stock, the continued eligibility criteria is that market wide position limit in the stock shall not be less than Rs. 60 crores and stock’s median quarter-sigma order size over the last six months shall be not less than Rs. 2 lakh. The stock shall be excluded if the above criteria is not fulfilled for consecutively three months.
3) Further, once the stock is excluded from the F&O list, it shall not be considered for re-inclusion for a period of one year.
News Capsules
Anil Ambani group company Reliance Power announced that it has tied up Rs 14,500 crore debt for its 3,960 MW Sasan Ultra Mega Power Project. Power Finance Corporation, the nodal agency for implementation of UMPPs, has sanctioned Rs 1,770 crore for the project.
The country’s largest two-wheeler company, Hero Honda, earned a net profit of Rs 402.2 crore for the quarter ending March 31, nearly 35 percent more than the Rs 298.7 crore for the same quarter last year. Total sales for the quarter were Rs 3,411.8 crore, a 22.34 per cent rise from the Rs 2,788.65 crore earned for the same period last year.
Two of the country’s largest private sector banks — ICICI Bank and HDFC Bank —reduced their rates, after the Reserve Bank of India (RBI) surprised the Street with a 25 basis points cut in the repo and reverse repo rates.
Wipro Ltd., has acquired the enterprise mobile TV unit owned by Finland-based leading mobile phone manufacturer, Nokia, for an undisclosed sum.
Suzlon Energy has posted a net loss of Rs 52.3 crore for the nine-month period ending December 31, 2008, against a net profit of Rs 565.28 crore in the year-ago period.
UltraTech Cement, part of the Aditya Birla group, has posted a decline of 3.17 per cent in its consolidated net profit for the financial year ended March 31, 2009 (FY09) to Rs 978.06 crore as compared with Rs 1,010.05 crore in the previous financial year. The net sales rose to Rs 6,563.64 crore from Rs 5,623.38 crore last year, up 16.72 per cent.
Rolta India said its consolidated net profit grew two-fold to Rs 133.14 crore in the third quarter ended March 31, over the corresponding period a year ago. The company had a consolidated net profit of Rs 65.72 crore in the March quarter of last financial year.
Matrix Laboratories Limited announced that it has been selected by the Clinton HIV/AIDS Initiative (CHAI) under its UNITAID-funded projects as the primary supplier of five antiretroviral (ARVs) drugs used in the secondline HIV/AIDS treatment regiments.
Biofuels technology company Praj Industries Ltd posted a severe dip of 53.10 per cent in net profit to Rs 27.52 crore during the January-March 2009 quarter of the recently-concluded financial year, against a profit of Rs 58.68 crore reported over the same period a year ago.
The country’s largest two-wheeler company, Hero Honda, earned a net profit of Rs 402.2 crore for the quarter ending March 31, nearly 35 percent more than the Rs 298.7 crore for the same quarter last year. Total sales for the quarter were Rs 3,411.8 crore, a 22.34 per cent rise from the Rs 2,788.65 crore earned for the same period last year.
Two of the country’s largest private sector banks — ICICI Bank and HDFC Bank —reduced their rates, after the Reserve Bank of India (RBI) surprised the Street with a 25 basis points cut in the repo and reverse repo rates.
Wipro Ltd., has acquired the enterprise mobile TV unit owned by Finland-based leading mobile phone manufacturer, Nokia, for an undisclosed sum.
Suzlon Energy has posted a net loss of Rs 52.3 crore for the nine-month period ending December 31, 2008, against a net profit of Rs 565.28 crore in the year-ago period.
UltraTech Cement, part of the Aditya Birla group, has posted a decline of 3.17 per cent in its consolidated net profit for the financial year ended March 31, 2009 (FY09) to Rs 978.06 crore as compared with Rs 1,010.05 crore in the previous financial year. The net sales rose to Rs 6,563.64 crore from Rs 5,623.38 crore last year, up 16.72 per cent.
Rolta India said its consolidated net profit grew two-fold to Rs 133.14 crore in the third quarter ended March 31, over the corresponding period a year ago. The company had a consolidated net profit of Rs 65.72 crore in the March quarter of last financial year.
Matrix Laboratories Limited announced that it has been selected by the Clinton HIV/AIDS Initiative (CHAI) under its UNITAID-funded projects as the primary supplier of five antiretroviral (ARVs) drugs used in the secondline HIV/AIDS treatment regiments.
Biofuels technology company Praj Industries Ltd posted a severe dip of 53.10 per cent in net profit to Rs 27.52 crore during the January-March 2009 quarter of the recently-concluded financial year, against a profit of Rs 58.68 crore reported over the same period a year ago.
STREET EXPECTATION ON QTRLY. RESULTS
Wipro is to announce its fourth quarter numbers for the year ended FY09. According to market estimates, its Q4 net profit is expected to go up by 4.7% to Rs 939.8 crore versus Rs 897.9 crore (US GAAP) QoQ. Revenues are likely to go up by 0.7% to Rs 6,583.9 crore versus Rs 6,538.7 crore.
ACC is to announce its Q1CY09 standalone numbers. According to market estimates, its profit after tax, PAT is expected to go up by 12% at Rs 359.5 crore versus Rs 321 crore, YoY. The company's revenues are seen going up by 15% at Rs 2,062.4 crore versus Rs 1,795.8 crore. Operating profit margin is seen at 27% versus 26%.
HCL Technologies is to come out with Q3FY09 numbers. According to market estimates, its net profit is expected to go down by 27.4% to Rs 257.5 crore as against Rs 354.7 crore QoQ. Revenues are seen going up by 12.9% to Rs 2,812.8 crore from Rs 2,490.8 crore.
Zee Entertainment is to announce its Q4FY09 numbers. According to market estimates, its profit after tax, PAT is expected to go down by 11% at Rs 81.6 crore versus Rs 92.4 crore. (PAT adjusted for minority interest). Revenues are seen going up by 0.4% to Rs 527.9 crore versus Rs 526 crore and operating profit margin is seen at 23% versus 24.8%.
Hindustan Zinc is to announce its Q4FY09 standalone numbers. According to market estimates, its net profit is expected to go down by 67% at Rs 424 crore versus Rs 1,278 crore. The company's net sales are seen going down by 49.4% at Rs 1,145 crore from Rs 2,266 crore. Its operating profit is seen at Rs 386.7 crore versus Rs 1,481 crore and operating profit margin is expected at 34% versus 65%.
ACC is to announce its Q1CY09 standalone numbers. According to market estimates, its profit after tax, PAT is expected to go up by 12% at Rs 359.5 crore versus Rs 321 crore, YoY. The company's revenues are seen going up by 15% at Rs 2,062.4 crore versus Rs 1,795.8 crore. Operating profit margin is seen at 27% versus 26%.
HCL Technologies is to come out with Q3FY09 numbers. According to market estimates, its net profit is expected to go down by 27.4% to Rs 257.5 crore as against Rs 354.7 crore QoQ. Revenues are seen going up by 12.9% to Rs 2,812.8 crore from Rs 2,490.8 crore.
Zee Entertainment is to announce its Q4FY09 numbers. According to market estimates, its profit after tax, PAT is expected to go down by 11% at Rs 81.6 crore versus Rs 92.4 crore. (PAT adjusted for minority interest). Revenues are seen going up by 0.4% to Rs 527.9 crore versus Rs 526 crore and operating profit margin is seen at 23% versus 24.8%.
Hindustan Zinc is to announce its Q4FY09 standalone numbers. According to market estimates, its net profit is expected to go down by 67% at Rs 424 crore versus Rs 1,278 crore. The company's net sales are seen going down by 49.4% at Rs 1,145 crore from Rs 2,266 crore. Its operating profit is seen at Rs 386.7 crore versus Rs 1,481 crore and operating profit margin is expected at 34% versus 65%.
Pre-Market Outlook
The market is likely to open on a positive note as yesterday RBI cut its key short-term rates by 25 basis points each to shore up faltering growth in the face of the global economic slowdown. The repo rate, at which the Reserve Bank of India (RBI) infuses cash into the banking system, will be cut to 4.75%, and the reverse repo rate, at which it absorbs excess cash from banks, will be reduced to 3.25%, effective immediately. Asian technology stocks rose after Elpida Memory Inc. said it plans to raise memory-chip prices, offsetting declines in the region by telecommunications shares. U.S. stocks rose on Tuesday after Treasury Secretary Timothy Geithner indicated most banks have sufficient reserves to protect against possible losses, sparking a rebound in bank shares. The Indian ADRs too ended on a postive note.
According to provisional data on NSE, foreign funds sold stocks worth a net Rs. 191.01 crore on Tuesday, 21 April 2009. Domestic funds sold shares worth a net Rs. 187.69 crore on that day.
According to provisional data on NSE, foreign funds sold stocks worth a net Rs. 191.01 crore on Tuesday, 21 April 2009. Domestic funds sold shares worth a net Rs. 187.69 crore on that day.
Tuesday, April 21, 2009
Market Update
Market opened gap down due to the negative cues from the global markets. In the first half, market regained it’s strength & bounced back strongly from day’s low of 3310 to 3410
levels. We have mentioned in our yesterday’s newsletter that index is facing problem over sustainability above 200 EMA so the choppiness can continue in the near term & the later half
proved us right. It pulled back to 3340 levels & closed marginally on the negative side. Stock specific was there while the market breadth ended on the negative side. Technically, we expect that it’ll correct by moving sideways & then further upside in the near term.
AsP pOerS tThe M pAroRviKsiEonTa l figures, the BSE 30-share Sensex was down 69.67 points or 0.63% to 10,909.83. At the day's high of 11,068.82, the Sensex rose 89.32 points in afternoon trade. At the day's low of 10,764.08, the Sensex fell 215.42 points in early trade. BSE clocked a
turnover of Rs 5,089 crore, higher than Rs 4,749.97 crore on Monday, 20 Apr09. The market breadth, indicating the overall health of the market, was marginally negative, recovering from a weak breadth earlier in the day. On BSE, 1,258 stocks advanced as compared to 1,288 that declined. A total of 64 shares remained unchanged. The S&P CNX Nifty was down 11.60 points or 0.34% to 3,365.50. The NSE turnover was up Rs.15160.41 crore from last trading session’s
Rs.14468.76 crore.
RBI highlights govt.'s imbalances
The RBI’s annual review of its monetary policy, which is expected to be more of a ritual today rather than a newsmaker, will have little to elaborate on the central bank’s policy moves. The reasons being the RBI’s limitation so far in impacting economic and credit growth through its monetary tools and its compulsion to release liquidity by buying back bonds to support the government’s borrowing plans. The RBI in its statement of ‘Macroeconomic and Monetary Developments’ released yesterday did not shy away from projecting a cautious outlook for the Indian economy, which it said ‘continues to exhibit the persistence of less than normal sentiments’.
The RBI’s concerns are further articulated in the annual accounts of the central government which clearly show an imbalance between the components of receipt and expenditure. While the revenue receipts have almost remained stagnant in the past fiscal, the Centre relied heavily on capital receipts, particularly market borrowings.
On the expenditure front, the upcoming polls seem to have had an overbearing on the Centre’s expenditures with the expensive borrowed funds having been generously given away in the form of subsidies to appease voters. In fact as a percentage of GDP, subsidies comprised 2.5% of the country’s GDP in FY09 (1.5% in FY08), the highest in the past decade.
The RBI’s concerns are further articulated in the annual accounts of the central government which clearly show an imbalance between the components of receipt and expenditure. While the revenue receipts have almost remained stagnant in the past fiscal, the Centre relied heavily on capital receipts, particularly market borrowings.
On the expenditure front, the upcoming polls seem to have had an overbearing on the Centre’s expenditures with the expensive borrowed funds having been generously given away in the form of subsidies to appease voters. In fact as a percentage of GDP, subsidies comprised 2.5% of the country’s GDP in FY09 (1.5% in FY08), the highest in the past decade.
Monday, April 20, 2009
Market Outlook
After the flat opening, index traded quiet choppy in the first half. Technically, index is in range of 3340-3500 levels & either side closing is important for clarity. The index stocks traded
mix but the market breadth remained on the positive side. Despite to current consolidation, Nifty has strong support at 3150 levels now & remaining above the same will keep the
upside biased intact but the uncertainty over the sustainability above 200 EMA resulting in volatility & choppy markets now a days. We expect this to end in a session or two.
AsP pOerS tThe M pAroRviKsiEonTa l figures, the BSE 30-share Sensex was down 32.83 points or 0.3% to 10,990.26. At the day's high of 11,209.66, the Sensex rose 186.57 points in mid-morning trade. At the day's low of 10,863.28, the Sensex fell 159.81 points in late trade. The BSE
clocked a turnover of Rs 4,727 crore today lower than Rs 5,569.51 crore on Friday, 17 Apr09. The market breadth, indicating the overall health of the market, was strong. On BSE 1,520 stocks advanced as compared to 1,047 that declined. A total of 56 shares remained unchanged. The S&P CNX Nifty was down 2.55 points or 0.08% to 3,381.85 as per the provisional figures. The NSE turnover was down Rs.14468.76 crore from last trading session’s Rs.17393.06 crore.
mix but the market breadth remained on the positive side. Despite to current consolidation, Nifty has strong support at 3150 levels now & remaining above the same will keep the
upside biased intact but the uncertainty over the sustainability above 200 EMA resulting in volatility & choppy markets now a days. We expect this to end in a session or two.
AsP pOerS tThe M pAroRviKsiEonTa l figures, the BSE 30-share Sensex was down 32.83 points or 0.3% to 10,990.26. At the day's high of 11,209.66, the Sensex rose 186.57 points in mid-morning trade. At the day's low of 10,863.28, the Sensex fell 159.81 points in late trade. The BSE
clocked a turnover of Rs 4,727 crore today lower than Rs 5,569.51 crore on Friday, 17 Apr09. The market breadth, indicating the overall health of the market, was strong. On BSE 1,520 stocks advanced as compared to 1,047 that declined. A total of 56 shares remained unchanged. The S&P CNX Nifty was down 2.55 points or 0.08% to 3,381.85 as per the provisional figures. The NSE turnover was down Rs.14468.76 crore from last trading session’s Rs.17393.06 crore.
Currency Breifing
The shift in risk appetite continues to be the primary driver in FX pricing as the uncertainty over policy steps the European Central Bank may take. The Australian dollar earlier climbed to its highest in more than six months against the euro but then retreated sharply after Asian
shares fell, prompting investors to reduce risky bets including the Aussie, also pushing the yen broadly higher. ECB President Jean-Claude Trichet signaled on Sunday during a trip to Tokyo that the bank's next move could likely be an interest rate cut of 25 basis points. There are
also chances that the ECB will follow the Federal Reserve, the Bank of England and the Bank of Japan in making asset purchases to contain the financial crisis. The ECB chief also said he appreciated U.S. comments that a strong dollar was in U.S. interests. Data released in the euro zone saw the February trade deficit improved to -€4.0 billion from -€5.4 billion. Economic calendar is light today with only US Leading Indicators.
shares fell, prompting investors to reduce risky bets including the Aussie, also pushing the yen broadly higher. ECB President Jean-Claude Trichet signaled on Sunday during a trip to Tokyo that the bank's next move could likely be an interest rate cut of 25 basis points. There are
also chances that the ECB will follow the Federal Reserve, the Bank of England and the Bank of Japan in making asset purchases to contain the financial crisis. The ECB chief also said he appreciated U.S. comments that a strong dollar was in U.S. interests. Data released in the euro zone saw the February trade deficit improved to -€4.0 billion from -€5.4 billion. Economic calendar is light today with only US Leading Indicators.
Indian mkt extremely cheap v/s China: Nomura
Paul Schulte, Chief Regional Equity Strategist of Nomura, feels that the global markets may test earlier lows. He said that several Asian markets seemed to have bottomed out. He also sees steel as a depreciating asset and steel stock as a value trap.
Comparing India with China, he said, "India is extremely cheap compared to China." He believes that there is a fundametal difference in developments in Asia versus West.
Comparing India with China, he said, "India is extremely cheap compared to China." He believes that there is a fundametal difference in developments in Asia versus West.
See Nifty touching 3800 in medium term: Vibhav Kapoor
Vibhav Kapoor of IL&FS said the markets have seen around 40% run-up in a time period of 5-6 weeks. At this point in time, valuations for most of the stocks are good or some stocks even seem to be overvalued.
“I believe the market will be range-bound between 3,300 and 3500 on the Nifty. However, in the medium term there is a possibility of the Nifty touching 3,800 mark,” Kapoor said. But in the immediate period, 3,550 is the resistance for the market.
Commenting on the expected rate cut by the Reserve Bank of India (RBI), Kapoor said the market is expecting around 50 bps cut, both, in reverse repo and repo. However, the RBI may not go in for a Cash Reserve Ratio (CRR) cut, he added.
“I believe the market will be range-bound between 3,300 and 3500 on the Nifty. However, in the medium term there is a possibility of the Nifty touching 3,800 mark,” Kapoor said. But in the immediate period, 3,550 is the resistance for the market.
Commenting on the expected rate cut by the Reserve Bank of India (RBI), Kapoor said the market is expecting around 50 bps cut, both, in reverse repo and repo. However, the RBI may not go in for a Cash Reserve Ratio (CRR) cut, he added.
US FDA finds glitches in Cipla's Goa, Bangalore plants
The US-Food and Drug Administration (FDA) has found nine deviations at pharmaceutical company Cipla's Banglore plant. Cipla, in response, said the deviations were of a routine minor nature. "The US-FDA's findings suggest need for improvements in good manufacturing practices.” CNBC-TV18's Archi Damania reports.
“The FDA has merely pointed out deviations, which happen even with the case of global majors,” Cipla said. The FDA has, however, said, “If Cipla fails to address the issues, it could invite a warning letter, followed by harsher action.”
US sales of Cipla are not very large—they are about 10% of the total sales.
However, what is important here is that significant amount of revenues of Cipla comes from Africa and that has high presence in the Human Immunodeficiency Virus (HIV) ie anti-AIDS segment, which contributes about 17%. To get approval from the President's Emergency Plan for AIDS Relief (PEPFAR), which is the President’s funds for antiretroviral disease, Cipla needs to have US-FDA approvals on and it needs to be in good books of US-FDA.
Reports also say that Cipla opposed the Cipla MedPro takeover by Adcock. The company may stop supplies to Cipla Medpro in South Africa.
Adcock had earlier announced that it wants to acquire Cipla MedPro in South Africa.
Adcok, however, had said they would continue supply from Cipla. Cipla has no Holding in Cipla Medpro but has 20-year supply agreement. The drug-supply agreement allows Cipla to terminate the supply programme if there is a change in the management.
If Cipla opposes this or if it doesn’t get through and if it cancels the supply agreement then the revenues from South Africa from its supplies to Cipla Medpro could also be impacted.
“The FDA has merely pointed out deviations, which happen even with the case of global majors,” Cipla said. The FDA has, however, said, “If Cipla fails to address the issues, it could invite a warning letter, followed by harsher action.”
US sales of Cipla are not very large—they are about 10% of the total sales.
However, what is important here is that significant amount of revenues of Cipla comes from Africa and that has high presence in the Human Immunodeficiency Virus (HIV) ie anti-AIDS segment, which contributes about 17%. To get approval from the President's Emergency Plan for AIDS Relief (PEPFAR), which is the President’s funds for antiretroviral disease, Cipla needs to have US-FDA approvals on and it needs to be in good books of US-FDA.
Reports also say that Cipla opposed the Cipla MedPro takeover by Adcock. The company may stop supplies to Cipla Medpro in South Africa.
Adcock had earlier announced that it wants to acquire Cipla MedPro in South Africa.
Adcok, however, had said they would continue supply from Cipla. Cipla has no Holding in Cipla Medpro but has 20-year supply agreement. The drug-supply agreement allows Cipla to terminate the supply programme if there is a change in the management.
If Cipla opposes this or if it doesn’t get through and if it cancels the supply agreement then the revenues from South Africa from its supplies to Cipla Medpro could also be impacted.
Mkts may correct 10% from current levels: JM Financial
Gautam Shah of JM Financial believes that bears are looking powerful at this stage, which means markets are due for a correction from the current levels. According to him, Nifty is likely to offer resistance at 3,490-3,500 level, while the Sensex may find it difficult to cross the 11,300-11,400 level.
Speaking exclusively to CNBC-TV18, Shah said markets may correct 10% from current levels folllowing which bear market will make a come back.
He advised investors to book profit at current levels. He reminded investors that the month of October and May have a bad track record, and "May might spoil the party for markets."
However, he is bullish on the midcap sector. According to Shah, worst for the midcap space is over and now there are chances of getting good returns.
Meanwhile, commenting on the global markets, Shah said most global markets are overbought at current levels. “However, 880 is an important level for S&P 500, and there is possibility of 10-15% correction in the US."
Speaking exclusively to CNBC-TV18, Shah said markets may correct 10% from current levels folllowing which bear market will make a come back.
He advised investors to book profit at current levels. He reminded investors that the month of October and May have a bad track record, and "May might spoil the party for markets."
However, he is bullish on the midcap sector. According to Shah, worst for the midcap space is over and now there are chances of getting good returns.
Meanwhile, commenting on the global markets, Shah said most global markets are overbought at current levels. “However, 880 is an important level for S&P 500, and there is possibility of 10-15% correction in the US."
Suzlon's Canadian plans, stock up
The Indian indices began the day on a positive note in line with global peers. While buying activity is being witnessed in stocks from the realty, consumer durable and capital goods space, select software and FMCG stocks are at the receiving end. The overall advance to decline ratio is poised at 3 to 1 on the BSE. As regards global markets, the US and European markets ended on a positive note last Friday. The Asian indices are currently trading mixed.
The BSE Sensex and the NSE Nifty are trading higher, up by around 82 points and 29 points respectively. The BSE Midcap and Smallcap indices are trading higher by 2% each. The rupee is trading at 49.98 to the dollar.
Automobile stocks are currently trading firm led by Tata Motors, Escorts and TVS Motors. As per a leading business daily, Maruti Suzuki is planning to invest Rs 12 bn to replace engines of existing models with new light-weight fuel-efficient engines. These new engines will conform to a new national emission standard which will come in place by 2010. It is expected that the company will strap its popular models Alto, WagonR, Zen Estilo, Versa and Swift with new engines by April 2010. It may be noted that these five models account for majority of Maruti's sales. Furthermore, it will help it compete against new cars like Honda’s Jazz, Volkswagen's Polo and Fiat's Grande Punto, which are likely to be launched in the domestic market soon.
As per a leading business daily, Suzlon Energy is planning to start business operations in the Canadian market in 2010. The company has taken this decision based on its internal analysis. The Canadian market has skilled manufacturing base and supportive legislation and policies which are favorable for setting up business operations by Suzlon. It may be noted that Suzlon, through its majority-owned Germany- based subsidiary Repower AG, had secured contracts for developing wind-power projects in Canada. Business operation close to project locations will help the company save high transportation cost of shipping wind towers and rotor blades. The move is in line with the company’s long term strategy to derisk its revenues and take advantage of the highly deregulated nature of these markets. The stock is currently trading higher
The BSE Sensex and the NSE Nifty are trading higher, up by around 82 points and 29 points respectively. The BSE Midcap and Smallcap indices are trading higher by 2% each. The rupee is trading at 49.98 to the dollar.
Automobile stocks are currently trading firm led by Tata Motors, Escorts and TVS Motors. As per a leading business daily, Maruti Suzuki is planning to invest Rs 12 bn to replace engines of existing models with new light-weight fuel-efficient engines. These new engines will conform to a new national emission standard which will come in place by 2010. It is expected that the company will strap its popular models Alto, WagonR, Zen Estilo, Versa and Swift with new engines by April 2010. It may be noted that these five models account for majority of Maruti's sales. Furthermore, it will help it compete against new cars like Honda’s Jazz, Volkswagen's Polo and Fiat's Grande Punto, which are likely to be launched in the domestic market soon.
As per a leading business daily, Suzlon Energy is planning to start business operations in the Canadian market in 2010. The company has taken this decision based on its internal analysis. The Canadian market has skilled manufacturing base and supportive legislation and policies which are favorable for setting up business operations by Suzlon. It may be noted that Suzlon, through its majority-owned Germany- based subsidiary Repower AG, had secured contracts for developing wind-power projects in Canada. Business operation close to project locations will help the company save high transportation cost of shipping wind towers and rotor blades. The move is in line with the company’s long term strategy to derisk its revenues and take advantage of the highly deregulated nature of these markets. The stock is currently trading higher
Market News
Economy
·Inflation eased to 0.18 per cent, the lowest ever in the last three decades, even as prices of food articles like pulses, cereals and vegetable hardened during the week ended April 4. The wholesale price-based index declined by 0.08 per cent against 0.26 per cent in the previous week. The decline was mainly due to higher base effect and falling prices of some manufactured products. The inflation stood at 7.71 per cent in the same wee k a year ago.
Oil & Gas
·Reliance Industries (RIL), the country's largest private company, may reopen its domestic petroleum retail outlets, as the export-oriented unit status of its first refinery at Jamnagar in Gujarat has been ended.
Telecommunication
·Reliance Communications (RCom), an Anil Ambani group company, has added around 11.3 million new subscribers in the January-March quarter, increasing its total subscriber base to 72.6 million by the March end.
·MTNL will launch its 3G services in Mumbai next month, as it targets a user base of 1,00,000 for the third generation mobile service by year-end.
Banking
·State Bank of India has agreed to lend Vodafone-Essar, the joint venture between UK's Vodafone and Essar, Rs 10,000 crore to finance the company's entry into 3G (third generation) telecom services and expansion of its broadband operations.
Automobile
·Maruti Suzuki is investing Rs 1,200 crore to replace engines of existing models with a new light-weight fuel-efficient one that will conform to a new national emission standard to come in place next year.
·Within 15 days of opening the registration process for Nano, its Rs 1 lakh car, Tata Motors has sold nearly 500,000 application forms, raking in Rs 15 crore (at Rs 300 each). Distributors associated with the Nano bookings said most of the forms were likely to translate into bookings.
Pharmaceutical
·Ranbaxy Laboratories, India's largest drug maker by sales, may be sitting on mark-to-market (MTM) losses of over Rs 2,500 crore on foreign currency derivatives transactions entered into with various banks, according to estimates by one of its lenders in February this year.
·Lupin Ltd plans to revamp its drug research programme and foray into novel biotech and reverse engineering of biotech drugs (or biosimilars). The move comes after the company's earlier development efforts failed to deliver the desired results. The foray into biotech will help it tap an emerging opportunity that is globally worth $30-40 billion.
·Polaris Software Lab, a financial technology company, is planning to strengthen its insurance portfolio business by introducing new solutions. The company is setting up a centre of excellence for insurance near Chennai with an investment of around Rs 100 crore to develop new
solutions and to service company's insurance clients.
Infrastructure
·Unitech Ltd, the country's second-biggest real estate developer, said it raised $325 million (Rs 1,625 crore) from selling new shares to qualified institutions to repay a part of its debt of over Rs 8,900 crore and strengthen capital.
·DLF, India's biggest real estate developer, is likely to pull out of its Rs 1,000 crore Infopark project in the city which was to be developed over 54 acres in an approved special economic zone for information technology projects.
Others
·In the last three months ending March 2009, the promoters' stake in GHCL, one of the leading chemical and textile companies, has declined by a whopping 20.16 percentage points to 18.16 per cent. It was 38.32 per cent at the end December 2008.
·Inflation eased to 0.18 per cent, the lowest ever in the last three decades, even as prices of food articles like pulses, cereals and vegetable hardened during the week ended April 4. The wholesale price-based index declined by 0.08 per cent against 0.26 per cent in the previous week. The decline was mainly due to higher base effect and falling prices of some manufactured products. The inflation stood at 7.71 per cent in the same wee k a year ago.
Oil & Gas
·Reliance Industries (RIL), the country's largest private company, may reopen its domestic petroleum retail outlets, as the export-oriented unit status of its first refinery at Jamnagar in Gujarat has been ended.
Telecommunication
·Reliance Communications (RCom), an Anil Ambani group company, has added around 11.3 million new subscribers in the January-March quarter, increasing its total subscriber base to 72.6 million by the March end.
·MTNL will launch its 3G services in Mumbai next month, as it targets a user base of 1,00,000 for the third generation mobile service by year-end.
Banking
·State Bank of India has agreed to lend Vodafone-Essar, the joint venture between UK's Vodafone and Essar, Rs 10,000 crore to finance the company's entry into 3G (third generation) telecom services and expansion of its broadband operations.
Automobile
·Maruti Suzuki is investing Rs 1,200 crore to replace engines of existing models with a new light-weight fuel-efficient one that will conform to a new national emission standard to come in place next year.
·Within 15 days of opening the registration process for Nano, its Rs 1 lakh car, Tata Motors has sold nearly 500,000 application forms, raking in Rs 15 crore (at Rs 300 each). Distributors associated with the Nano bookings said most of the forms were likely to translate into bookings.
Pharmaceutical
·Ranbaxy Laboratories, India's largest drug maker by sales, may be sitting on mark-to-market (MTM) losses of over Rs 2,500 crore on foreign currency derivatives transactions entered into with various banks, according to estimates by one of its lenders in February this year.
·Lupin Ltd plans to revamp its drug research programme and foray into novel biotech and reverse engineering of biotech drugs (or biosimilars). The move comes after the company's earlier development efforts failed to deliver the desired results. The foray into biotech will help it tap an emerging opportunity that is globally worth $30-40 billion.
·Polaris Software Lab, a financial technology company, is planning to strengthen its insurance portfolio business by introducing new solutions. The company is setting up a centre of excellence for insurance near Chennai with an investment of around Rs 100 crore to develop new
solutions and to service company's insurance clients.
Infrastructure
·Unitech Ltd, the country's second-biggest real estate developer, said it raised $325 million (Rs 1,625 crore) from selling new shares to qualified institutions to repay a part of its debt of over Rs 8,900 crore and strengthen capital.
·DLF, India's biggest real estate developer, is likely to pull out of its Rs 1,000 crore Infopark project in the city which was to be developed over 54 acres in an approved special economic zone for information technology projects.
Others
·In the last three months ending March 2009, the promoters' stake in GHCL, one of the leading chemical and textile companies, has declined by a whopping 20.16 percentage points to 18.16 per cent. It was 38.32 per cent at the end December 2008.
Market Outlook
Economy
·Inflation eased to 0.18 per cent, the lowest ever in the last three decades,
even as prices of food articles like pulses, cereals and vegetable hardened
during the week ended April 4. The wholesale price-based index declined
by 0.08 per cent against 0.26 per cent in the previous week. The decline
was mainly due to higher base effect and falling prices of some
manufactured products. The inflation stood at 7.71 per cent in the same
wee k a year ago.
Oil & Gas
·Reliance Industries (RIL), the country's largest private company, may
reopen its domestic petroleum retail outlets, as the export-oriented unit
status of its first refinery at Jamnagar in Gujarat has been ended.
Telecommunication
·Reliance Communications (RCom), an Anil Ambani group company, has
added around 11.3 million new subscribers in the January-March quarter,
increasing its total subscriber base to 72.6 million by the March end.
·MTNL will launch its 3G services in Mumbai next month, as it targets a user
base of 1,00,000 for the third generation mobile service by year-end.
Banking
·State Bank of India has agreed to lend Vodafone-Essar, the joint venture
between UK's Vodafone and Essar, Rs 10,000 crore to finance the company's
entry into 3G (third generation) telecom services and expansion of its
broadband operations.
Automobile
·Maruti Suzuki is investing Rs 1,200 crore to replace engines of existing
models with a new light-weight fuel-efficient one that will conform to a
new national emission standard to come in place next year.
·Within 15 days of opening the registration process for Nano, its Rs 1 lakh
car, Tata Motors has sold nearly 500,000 application forms, raking in Rs 15
crore (at Rs 300 each). Distributors associated with the Nano bookings said
most of the forms were likely to translate into bookings.
Pharmaceutical
·Ranbaxy Laboratories, India's largest drug maker by sales, may be sitting on
mark-to-market (MTM) losses of over Rs 2,500 crore on foreign currency
derivatives transactions entered into with various banks, according to
estimates by one of its lenders in February this year.
·Lupin Ltd plans to revamp its drug research programme and foray into novel
biotech and reverse engineering of biotech drugs (or biosimilars). The
move comes after the company's earlier development efforts failed to
deliver the desired results. The foray into biotech will help it tap an
emerging opportunity that is globally worth $30-40 billion.
·Polaris Software Lab, a financial technology company, is planning to
strengthen its insurance portfolio business by introducing new solutions.
The company is setting up a centre of excellence for insurance near
Chennai with an investment of around Rs 100 crore to develop new
solutions and to service company's insurance clients.
Infrastructure
·Unitech Ltd, the country's second-biggest real estate developer, said it
raised $325 million (Rs 1,625 crore) from selling new shares to qualified
institutions to repay a part of its debt of over Rs 8,900 crore and strengthen
capital.
·DLF, India's biggest real estate developer, is likely to pull out of its Rs 1,000
crore Infopark project in the city which was to be developed over 54 acres
in an approved special economic zone for information technology projects.
Others
·In the last three months ending March 2009, the promoters' stake in GHCL,
one of the leading chemical and textile companies, has declined by a
whopping 20.16 percentage points to 18.16 per cent. It was 38.32 per cent
at the end December 2008.
·Inflation eased to 0.18 per cent, the lowest ever in the last three decades,
even as prices of food articles like pulses, cereals and vegetable hardened
during the week ended April 4. The wholesale price-based index declined
by 0.08 per cent against 0.26 per cent in the previous week. The decline
was mainly due to higher base effect and falling prices of some
manufactured products. The inflation stood at 7.71 per cent in the same
wee k a year ago.
Oil & Gas
·Reliance Industries (RIL), the country's largest private company, may
reopen its domestic petroleum retail outlets, as the export-oriented unit
status of its first refinery at Jamnagar in Gujarat has been ended.
Telecommunication
·Reliance Communications (RCom), an Anil Ambani group company, has
added around 11.3 million new subscribers in the January-March quarter,
increasing its total subscriber base to 72.6 million by the March end.
·MTNL will launch its 3G services in Mumbai next month, as it targets a user
base of 1,00,000 for the third generation mobile service by year-end.
Banking
·State Bank of India has agreed to lend Vodafone-Essar, the joint venture
between UK's Vodafone and Essar, Rs 10,000 crore to finance the company's
entry into 3G (third generation) telecom services and expansion of its
broadband operations.
Automobile
·Maruti Suzuki is investing Rs 1,200 crore to replace engines of existing
models with a new light-weight fuel-efficient one that will conform to a
new national emission standard to come in place next year.
·Within 15 days of opening the registration process for Nano, its Rs 1 lakh
car, Tata Motors has sold nearly 500,000 application forms, raking in Rs 15
crore (at Rs 300 each). Distributors associated with the Nano bookings said
most of the forms were likely to translate into bookings.
Pharmaceutical
·Ranbaxy Laboratories, India's largest drug maker by sales, may be sitting on
mark-to-market (MTM) losses of over Rs 2,500 crore on foreign currency
derivatives transactions entered into with various banks, according to
estimates by one of its lenders in February this year.
·Lupin Ltd plans to revamp its drug research programme and foray into novel
biotech and reverse engineering of biotech drugs (or biosimilars). The
move comes after the company's earlier development efforts failed to
deliver the desired results. The foray into biotech will help it tap an
emerging opportunity that is globally worth $30-40 billion.
·Polaris Software Lab, a financial technology company, is planning to
strengthen its insurance portfolio business by introducing new solutions.
The company is setting up a centre of excellence for insurance near
Chennai with an investment of around Rs 100 crore to develop new
solutions and to service company's insurance clients.
Infrastructure
·Unitech Ltd, the country's second-biggest real estate developer, said it
raised $325 million (Rs 1,625 crore) from selling new shares to qualified
institutions to repay a part of its debt of over Rs 8,900 crore and strengthen
capital.
·DLF, India's biggest real estate developer, is likely to pull out of its Rs 1,000
crore Infopark project in the city which was to be developed over 54 acres
in an approved special economic zone for information technology projects.
Others
·In the last three months ending March 2009, the promoters' stake in GHCL,
one of the leading chemical and textile companies, has declined by a
whopping 20.16 percentage points to 18.16 per cent. It was 38.32 per cent
at the end December 2008.
Saturday, April 18, 2009
Sebi probes surge in Tech Maha shares before Satyam deal
Market regulator Sebi has initiated a probe into the sudden spike in the shares of Tech Mahindra minutes before the Satyam announcement was actually made. CNBC-TV18's Vivek Law delves deeper.What has been learnt recently is that the market regulator, Securities and Exchange Board of India (Sebi) is examining this sharp spurt—22% in nine minutes. This was well before the news was actually publicly available on all the channels. Though that news, too, was source based. But the fact of the matter is that the stock jumped 22% in nine minutes between 11:35 am to 11:44 am, and, more stunningly, it jumped 12% in barely three minutes. The market regulator has launched a probe. Stock exchanges are independently verifying who were the buyers at this point of time; did they know something that the rest of the market didn’t know? The regulator wants to have a close look and whether price sensitive information such as this was leaked that day.As we know the key issue at this point is a Sebi approval. Now Sebi is quite satisfied with the manner in which the process has gone through. Several board members of Satyam were in regular touch with Satyam periodically, explaining to the regulator about the process. This was as we know a contingency kind of a situation, which the regulator allowed, not to make an open offer, relaxed various norms.
Now, what I learn is that the open offer, the offer document that will be released by the company concerned once it is approved by Sebi, the regulator is examining whether critical information that formed part of the data room, which has been revealed to several bidders who came and visited the data room should also now be disclosed to shareholders at large. The reason being there is no other information that is coming out of Satyam as we know. The accounts haven’t been restated, account statements haven’t been disclosed on a periodic basis, are unlikely to at least for another six months is what we’ve understood.
So the regulator is keen that more information, as much as possible can be disclosed to shareholders in this offer document.Commenting on a similar query, Deepak Parekh, Satyam Board Member had said, "Accounting firms are still at it. We are trying to get the accounts restated for the past five-six years. So, they are starting from 2009 last quarter then 2008. Their work is still in progress. They will still take a few months more. So, we cannot really release anything on the accounting side. But subsequently, after the entire process is over, whatever information we had in the data room, which was privileged information for the four bidders, that could be made public to the other Satyam shareholders. But that is entirely the call of the winning bidder.Now, that the CLB has given its formal nod and we do understand on Monday, Tech Mahindra is going to be meeting the Satyam board, it remains to be seen whether they actually do decide to disclose certain more additional information to Satyam shareholders who have been pretty much starved of basic information of what is going on in the company.
Now, what I learn is that the open offer, the offer document that will be released by the company concerned once it is approved by Sebi, the regulator is examining whether critical information that formed part of the data room, which has been revealed to several bidders who came and visited the data room should also now be disclosed to shareholders at large. The reason being there is no other information that is coming out of Satyam as we know. The accounts haven’t been restated, account statements haven’t been disclosed on a periodic basis, are unlikely to at least for another six months is what we’ve understood.
So the regulator is keen that more information, as much as possible can be disclosed to shareholders in this offer document.Commenting on a similar query, Deepak Parekh, Satyam Board Member had said, "Accounting firms are still at it. We are trying to get the accounts restated for the past five-six years. So, they are starting from 2009 last quarter then 2008. Their work is still in progress. They will still take a few months more. So, we cannot really release anything on the accounting side. But subsequently, after the entire process is over, whatever information we had in the data room, which was privileged information for the four bidders, that could be made public to the other Satyam shareholders. But that is entirely the call of the winning bidder.Now, that the CLB has given its formal nod and we do understand on Monday, Tech Mahindra is going to be meeting the Satyam board, it remains to be seen whether they actually do decide to disclose certain more additional information to Satyam shareholders who have been pretty much starved of basic information of what is going on in the company.
Sharp sell-off spoils the cheer
Strong selling activity during the final hour led the indices to lose most of their gains, to end the day marginally above the dotted line. The BSE-Sensex closed with gains of around 75 points, while the NSE-Nifty closed higher by about 15 points. Stocks from the mid-cap and small-cap space ended the day on a positive note as well. Stocks from the realty and banking space led the pack of gainers today, while stocks form the healthcare and metal space bore the brunt of profit booking.
Most of the other Asian markets ended the day in the green. The European indices are currently trading firm as well. Rupee was trading at 49.85 against the US dollar at the time of writing.
Logistics stocks ended the day on a weak note led by Aegis Logistics and Gateway Distriparks. Container Corporation of India (Concor) announced its full year results recently. The company’s revenues for the year grew by 2% YoY. During the year, the company’s export-import business grew by 3% YoY, while its domestic business’ revenues dropped by 2% YoY. Despite lower volumes, the growth has come in on account of improved realisations. Stable to lower cost of operation resulted in 2% EBITDA margin expansion for the fiscal, which stood at 29% during FY09. At the profit level, the company’s numbers grew by 9% YoY. This growth in profits was on the back of a strong operating performance and higher other income.
Media stocks ended the day on a mixed note. While Zee News and SunTV led the pack of gainers, Zee Entertainment and UTV Software ended on a weak note. As per television rating agency TAM Media Research, television channel Colors, a joint venture between Viacom and Network 18 has taken the position of India’s No. 1 channel in the Hindi general entertainment segment. This position was held by Star Plus for over nine years. Zee Entertainment came third. It may be noted that the method of rating done by agency is often questioned by some parties on the grounds that many important sections are not covered by the samples. Moreover, there is considerable leeway in selection of data points. Nonetheless, the results highlight the impact a few blockbuster shows can have on the fortunes of any particular channel. However, it may be noted that few soaps of Colors command higher rating.
The world's largest mobile phone maker, Nokia has recorded a 90% YoY fall in profits during 1QCY09, while its topline dropped by 27% YoY. As per the company’s management, the economic slowdown has forced customers to buy cheaper handsets. Surprisingly, the company’s stock price rose by 9% as the financial community expected worse results. It may be noted that during 2008, sales from India contributed nearly 14.5% of the company’s total revenues. In fact, India is the 2nd biggest market for company. The biggest market for Nokia is China, which contributed nearly 23% of the company’s revenues during 2008.
Most of the other Asian markets ended the day in the green. The European indices are currently trading firm as well. Rupee was trading at 49.85 against the US dollar at the time of writing.
Logistics stocks ended the day on a weak note led by Aegis Logistics and Gateway Distriparks. Container Corporation of India (Concor) announced its full year results recently. The company’s revenues for the year grew by 2% YoY. During the year, the company’s export-import business grew by 3% YoY, while its domestic business’ revenues dropped by 2% YoY. Despite lower volumes, the growth has come in on account of improved realisations. Stable to lower cost of operation resulted in 2% EBITDA margin expansion for the fiscal, which stood at 29% during FY09. At the profit level, the company’s numbers grew by 9% YoY. This growth in profits was on the back of a strong operating performance and higher other income.
Media stocks ended the day on a mixed note. While Zee News and SunTV led the pack of gainers, Zee Entertainment and UTV Software ended on a weak note. As per television rating agency TAM Media Research, television channel Colors, a joint venture between Viacom and Network 18 has taken the position of India’s No. 1 channel in the Hindi general entertainment segment. This position was held by Star Plus for over nine years. Zee Entertainment came third. It may be noted that the method of rating done by agency is often questioned by some parties on the grounds that many important sections are not covered by the samples. Moreover, there is considerable leeway in selection of data points. Nonetheless, the results highlight the impact a few blockbuster shows can have on the fortunes of any particular channel. However, it may be noted that few soaps of Colors command higher rating.
The world's largest mobile phone maker, Nokia has recorded a 90% YoY fall in profits during 1QCY09, while its topline dropped by 27% YoY. As per the company’s management, the economic slowdown has forced customers to buy cheaper handsets. Surprisingly, the company’s stock price rose by 9% as the financial community expected worse results. It may be noted that during 2008, sales from India contributed nearly 14.5% of the company’s total revenues. In fact, India is the 2nd biggest market for company. The biggest market for Nokia is China, which contributed nearly 23% of the company’s revenues during 2008.
Friday, April 17, 2009
Markets ends marginally Highe
After roaring run up, the benchmark indices wiped out more than 2.5% gains in the last one hour of the trade and ended the day marginally higher amid choppy trade. Shares of banking, telecom, capital goods and private power companies, heavyweight and ONGC helped the indices to close higher. However, the sell-off in metal, FMCG, auto, pharma stocks as well as stocks like Reliance Industries, NTPC, DLF, Wipro and ACC capped the gains.
The Sensex was up 105 points, to 11,052 and the Nifty went up 27 points, to 3397 (provisional figures).
The Sensex was up 105 points, to 11,052 and the Nifty went up 27 points, to 3397 (provisional figures).
Sad Story of Airlines
Aviation is arguably among the most difficult industries from the owner’s perspective. It suffers from disadvantages in both input costs and pricing power. The highly capital intensive nature of operations and vagaries of crude oil prices make costs hard to control. The presence of many competitors and commoditisation of tickets due to travel portals exert a great deal of pressure on ticket prices. Little wonder then, that bad news continues to pour out from the Indian civil aviation sector.
As per DNA Money, airlines have not hiked fares despite 3 hikes in aviation turbine fuel prices in the last 45 days to the tune of 18%. Airlines fear any hike will reduce air traffic which has already declined on a YoY basis. Basically, any hike in prices in nullified by decline in volumes, a tell tale sign of a commodity market.
Another article in the Business Standard reports how foreign airlines are pulling out of India. Apparently, high airport charges and a decline in premium inbound traffic has exerted a severe pressure on margins. In fact, leading international airlines have cut back on over 100 flights in the last 6 months. While the global slowdown has an impact on the aviation industry worldwide, the cost structure in India seems to be particularly bad. As per the article, airport charges are declining anywhere between 10% and 50% worldwide, but increasing in India to the tune of 10%.
In another story, The Economic Times reports that Jet Airways, one of the leading Indian carriers, is all set to cut nearly 400 jobs as part of a restructuring exercise. It plans to do away with offices in multiple cities and centralise back end operations to its Mumbai location. It also plans to automate services like passenger check in a bid to reduce the employee count.
While some of these factors might seem unique to the present circumstances, we believe the structure of the industry does not allow owners to breathe easy. During a boom, airlines suffer from over supply and skyrocketing fuel prices. During a bust, they struggle to fill the seats. Not the kind of business a long term investor would want to be in.
As per DNA Money, airlines have not hiked fares despite 3 hikes in aviation turbine fuel prices in the last 45 days to the tune of 18%. Airlines fear any hike will reduce air traffic which has already declined on a YoY basis. Basically, any hike in prices in nullified by decline in volumes, a tell tale sign of a commodity market.
Another article in the Business Standard reports how foreign airlines are pulling out of India. Apparently, high airport charges and a decline in premium inbound traffic has exerted a severe pressure on margins. In fact, leading international airlines have cut back on over 100 flights in the last 6 months. While the global slowdown has an impact on the aviation industry worldwide, the cost structure in India seems to be particularly bad. As per the article, airport charges are declining anywhere between 10% and 50% worldwide, but increasing in India to the tune of 10%.
In another story, The Economic Times reports that Jet Airways, one of the leading Indian carriers, is all set to cut nearly 400 jobs as part of a restructuring exercise. It plans to do away with offices in multiple cities and centralise back end operations to its Mumbai location. It also plans to automate services like passenger check in a bid to reduce the employee count.
While some of these factors might seem unique to the present circumstances, we believe the structure of the industry does not allow owners to breathe easy. During a boom, airlines suffer from over supply and skyrocketing fuel prices. During a bust, they struggle to fill the seats. Not the kind of business a long term investor would want to be in.
News Capsules
Reliance Industries (RIL), the country’s largest private company, may reopen its domestic petroleum retail outlets, as the export-oriented unit
status of its first refinery at Jamnagar in Gujarat has been ended.
State Bank of India has agreed to lend Vodafone-Essar, the joint venture between UK’s Vodafone and Essar, Rs 10,000 crore to finance the
company’s entry into 3G (third generation) telecom services and expansion of its broadband operations.
Maruti Suzuki, which makes every second car sold in India, is investing Rs 1,200 crore to replace engines of existing models with a new lightweight
fuel-efficient one that will conform to a new national emission standard to come in place next year.
TATA Communications (TCL), earlier known as VSNL, has joined an international consortium to build a $600-million West African cable system
(WACS), which will link countries in Southern and Western Africa and Europe.
Unitech Ltd, the country’s second-biggest real estate developer, said it raised $325 million (Rs 1,625 crore) from selling new shares to qualified
institutions to repay a part of its debt of over Rs 8,900 crore and strengthen capital.
DLF, India’s biggest real estate developer, is likely to pull out of its Rs 1,000 crore Infopark project in the city which was to be developed over 54
acres in an approved special economic zone for information technology projects.
In the last three months ending March 2009, the promoters’ stake in GHCL, one of the leading chemical and textile companies, has declined by a
whopping 20.16 percentage points to 18.16 per cent. It was 38.32 per cent at the end December 2008.
Natco Pharma Limited has entered into an agreement with Dr Reddy's Laboratories Limited for the development, manufacture and supply of a
basket of value-added generic oncology drugs.
status of its first refinery at Jamnagar in Gujarat has been ended.
State Bank of India has agreed to lend Vodafone-Essar, the joint venture between UK’s Vodafone and Essar, Rs 10,000 crore to finance the
company’s entry into 3G (third generation) telecom services and expansion of its broadband operations.
Maruti Suzuki, which makes every second car sold in India, is investing Rs 1,200 crore to replace engines of existing models with a new lightweight
fuel-efficient one that will conform to a new national emission standard to come in place next year.
TATA Communications (TCL), earlier known as VSNL, has joined an international consortium to build a $600-million West African cable system
(WACS), which will link countries in Southern and Western Africa and Europe.
Unitech Ltd, the country’s second-biggest real estate developer, said it raised $325 million (Rs 1,625 crore) from selling new shares to qualified
institutions to repay a part of its debt of over Rs 8,900 crore and strengthen capital.
DLF, India’s biggest real estate developer, is likely to pull out of its Rs 1,000 crore Infopark project in the city which was to be developed over 54
acres in an approved special economic zone for information technology projects.
In the last three months ending March 2009, the promoters’ stake in GHCL, one of the leading chemical and textile companies, has declined by a
whopping 20.16 percentage points to 18.16 per cent. It was 38.32 per cent at the end December 2008.
Natco Pharma Limited has entered into an agreement with Dr Reddy's Laboratories Limited for the development, manufacture and supply of a
basket of value-added generic oncology drugs.
Market Outlook
The market is likely to open on a positive note-taking cue from global markets. The
Q4 March 2009 results will dictate the near-term trend on the bourses and investors will
closely watch the future outlook provided by the company managements. Asian stocks
advanced, led by banks and automakers, as earnings from JPMorgan Chase & Co. and
falling U.S. jobless claims lifted confidence the global recession is easing. U.S. stocks
surged on Thursday as expectations of reassuring results from bellwethers, including
Google, lifted technology shares, while JPMorgan's better-than-expected profit added to
bank stabilization hopes. Indian ADRs ended on a mixed note.
According to provisional data on NSE, foreign funds bought stocks worth a net Rs.
479.09 crore on Thursday, 16 March 2009. Domestic funds sold shares worth a net
Rs. 1124.24 crore on that day.
Q4 March 2009 results will dictate the near-term trend on the bourses and investors will
closely watch the future outlook provided by the company managements. Asian stocks
advanced, led by banks and automakers, as earnings from JPMorgan Chase & Co. and
falling U.S. jobless claims lifted confidence the global recession is easing. U.S. stocks
surged on Thursday as expectations of reassuring results from bellwethers, including
Google, lifted technology shares, while JPMorgan's better-than-expected profit added to
bank stabilization hopes. Indian ADRs ended on a mixed note.
According to provisional data on NSE, foreign funds bought stocks worth a net Rs.
479.09 crore on Thursday, 16 March 2009. Domestic funds sold shares worth a net
Rs. 1124.24 crore on that day.
Thursday, April 16, 2009
Europe up, Asia mixed, India down
The Indian markets lost further ground during the final hour of trade as persistent selling activity led the market sentiments weaken further. The overall decline to advance ratio at the time of closing stood at 2 to 1 on the BSE. The BSE-Sensex closed with losses of around 340 points, while the NSE-Nifty closed lower by about 115 points. Stocks from the mid-cap and small-cap space ended the day on a weak note as well. Except for stocks from the FMCG space, selling activity was witnessed in stocks across sectors led by realty, metal and capital goods.
Other Asian markets ended the day on a mixed note. The European indices are currently trading firm. Rupee was trading at 49.69 against the US dollar at the time of writing.
Inflation, as measured by the WPI, declined to 0.18% for the week ended April 4. The figure is lower by nearly 0.08% from the number recorded in the week ending March 28. As per a leading business daily, the decline is mainly on account of a higher base effect and falling prices of some manufactured products. Infact, inflation was at 7.71% during the corresponding week of the previous year. It may be noted that during the week, the prices of food items such as pulses, cereals and vegetables along with fuel items increased.
Engineering stocks ended the day on a weak note led by Suzlon Energy, Praj Industries and Areva T&D. Suzlon Energy is believed to be facing problems relating to WTG blades once again. The company had recently won from its subsidiary REpower a contract to supply blades for 75 turbines for a project in China. However, it is believed that REpower has rejected Suzlon’s prototype for the initial blades for not meeting its quality standards. In fact, REpower obtained them from other suppliers and in the process lost about €6 m as it shipped stand-in blades from Europe. However, the management of Suzlon has mentioned that any penalty as such would not material for Suzlon. It may be noted that the company has faced problems relating to the quality of its blades supplied to the US in the past too.
As per a leading business daily, steel behemoth, ArcelorMittal is likely to delay its plan of setting up steel plants in India by at least two years. The company had originally planned to set up two steel plants, one in Jharkhand and the other in Orissa, with each having a capacity of 12 m tonnes per annum. It is believed that these are now likely to go on stream only after FY11. As per the company, the delay in the projects has been on account of the global economic slowdown and land acquisition related issues. The company is yet to acquire mines and land for these projects. On account of the above-mentioned reasons, ArcelorMittal is planning to halve its investment in the first phase. However, the company remains committed to its total investment in the country.
Other Asian markets ended the day on a mixed note. The European indices are currently trading firm. Rupee was trading at 49.69 against the US dollar at the time of writing.
Inflation, as measured by the WPI, declined to 0.18% for the week ended April 4. The figure is lower by nearly 0.08% from the number recorded in the week ending March 28. As per a leading business daily, the decline is mainly on account of a higher base effect and falling prices of some manufactured products. Infact, inflation was at 7.71% during the corresponding week of the previous year. It may be noted that during the week, the prices of food items such as pulses, cereals and vegetables along with fuel items increased.
Engineering stocks ended the day on a weak note led by Suzlon Energy, Praj Industries and Areva T&D. Suzlon Energy is believed to be facing problems relating to WTG blades once again. The company had recently won from its subsidiary REpower a contract to supply blades for 75 turbines for a project in China. However, it is believed that REpower has rejected Suzlon’s prototype for the initial blades for not meeting its quality standards. In fact, REpower obtained them from other suppliers and in the process lost about €6 m as it shipped stand-in blades from Europe. However, the management of Suzlon has mentioned that any penalty as such would not material for Suzlon. It may be noted that the company has faced problems relating to the quality of its blades supplied to the US in the past too.
As per a leading business daily, steel behemoth, ArcelorMittal is likely to delay its plan of setting up steel plants in India by at least two years. The company had originally planned to set up two steel plants, one in Jharkhand and the other in Orissa, with each having a capacity of 12 m tonnes per annum. It is believed that these are now likely to go on stream only after FY11. As per the company, the delay in the projects has been on account of the global economic slowdown and land acquisition related issues. The company is yet to acquire mines and land for these projects. On account of the above-mentioned reasons, ArcelorMittal is planning to halve its investment in the first phase. However, the company remains committed to its total investment in the country.
Results Update
JPMorgan Chase has announced its first quarter results. The company's Q1 revenues are up at USD 25.03 billion versus USD 16.89 billion.
Its net profit was down at USD 2.14 billion versus USD 2.37 billion.
Biocon is to declare its fourth quarter results. According to CNBC-TV18 estimates, the company’s Q4 FY09 consolidated net sales are seen up 74% at Rs 463 crore versus Rs 266.63 crore.
Its operating profit is seen at Rs 102 crore versus Rs 82.5 crore.
Its OPM is seen 22% versus 31%
The company’s net profit is seen down 34% at Rs 43 crore versus Rs 65.30 crore.
Factors to watch for:
1. Revenue growth supported by Axicorp acquisition
2.Expect scale up in BMS contract
3. Rupee depreciation to help contract research and manufacturing business
4. Licensing income to drop
5. May see MTM losses on forex hedging.
Sesa Goa is to announce its fourth quarter results. According to CNBC-TV18 estimates, the company’s Q4 FY09 net sales are seen down 15% at Rs 1455 crore versus Rs 1705 crore.
Its operating profit is seen down at Rs 729 crore versus Rs 1217 crore.
The company’s net profit is seen down 30% at Rs 569 crore versus Rs 813.6 crore.
Factors to watch for:
1.Margins to improve QoQ due to withdrawal of export duty
2.Weaker rupee to contribute to higher profits
3.Expect iron ore volumes in this qtr to be 6 mn tons ( of which 66% will be exports to China)
4.Sesa Goa to be key beneficiary of steel demand uptick in China
5.Larger players SesaGoa will gain market share as small private miners turn unprofitable and shut down
6.Management is looking to add 500 mt in iron ore recourses over next 2-3 years
7.The company has Rs 3200 crore of cash
8.It is debt free company
Its net profit was down at USD 2.14 billion versus USD 2.37 billion.
Biocon is to declare its fourth quarter results. According to CNBC-TV18 estimates, the company’s Q4 FY09 consolidated net sales are seen up 74% at Rs 463 crore versus Rs 266.63 crore.
Its operating profit is seen at Rs 102 crore versus Rs 82.5 crore.
Its OPM is seen 22% versus 31%
The company’s net profit is seen down 34% at Rs 43 crore versus Rs 65.30 crore.
Factors to watch for:
1. Revenue growth supported by Axicorp acquisition
2.Expect scale up in BMS contract
3. Rupee depreciation to help contract research and manufacturing business
4. Licensing income to drop
5. May see MTM losses on forex hedging.
Sesa Goa is to announce its fourth quarter results. According to CNBC-TV18 estimates, the company’s Q4 FY09 net sales are seen down 15% at Rs 1455 crore versus Rs 1705 crore.
Its operating profit is seen down at Rs 729 crore versus Rs 1217 crore.
The company’s net profit is seen down 30% at Rs 569 crore versus Rs 813.6 crore.
Factors to watch for:
1.Margins to improve QoQ due to withdrawal of export duty
2.Weaker rupee to contribute to higher profits
3.Expect iron ore volumes in this qtr to be 6 mn tons ( of which 66% will be exports to China)
4.Sesa Goa to be key beneficiary of steel demand uptick in China
5.Larger players SesaGoa will gain market share as small private miners turn unprofitable and shut down
6.Management is looking to add 500 mt in iron ore recourses over next 2-3 years
7.The company has Rs 3200 crore of cash
8.It is debt free company
Inflation for week ended Apr 16
Inflation for the week ended April 4 has come in at 0.18% as against 0.26% the week earlier. A CNBC-TV18 poll earlier saw inflation for the week ended April 4 coming in the negative.
Wholesale Price Index (WPI) for all commodities was up 0.4%, At 228.2 on week-on-week (WoW) basis. Primary articles were up 1.1% (WoW), whereas, manufacturing products climbed 0.1% (WoW). Fuel Group was up 0.5% (WoW) and Jet Fuel Price was up 12% (WoW). Naphtha rose 8%.
Meanwhile, inflation for the week-ended February 7 has been revised to 3.69% as against the provisional figure of 3.93%.
Mridul Sagar, Chief Economist at Kotak Securities feels there is still scope of seeing deflation at some point of time, where inflation will move into the negative territory. However, he said, the euphoria which one had or the concerns one had in terms of whether we would get large deflation in India seems to be petering out a bit.
Nevertheless, one is still seeing food price pressures as a matter of deep concern and is reflected in the Consumer Price Index (CPI). Sagar feels, probably, the markets would take recognition of the fact that the fall in inflation is overplayed statistically.
Wholesale Price Index (WPI) for all commodities was up 0.4%, At 228.2 on week-on-week (WoW) basis. Primary articles were up 1.1% (WoW), whereas, manufacturing products climbed 0.1% (WoW). Fuel Group was up 0.5% (WoW) and Jet Fuel Price was up 12% (WoW). Naphtha rose 8%.
Meanwhile, inflation for the week-ended February 7 has been revised to 3.69% as against the provisional figure of 3.93%.
Mridul Sagar, Chief Economist at Kotak Securities feels there is still scope of seeing deflation at some point of time, where inflation will move into the negative territory. However, he said, the euphoria which one had or the concerns one had in terms of whether we would get large deflation in India seems to be petering out a bit.
Nevertheless, one is still seeing food price pressures as a matter of deep concern and is reflected in the Consumer Price Index (CPI). Sagar feels, probably, the markets would take recognition of the fact that the fall in inflation is overplayed statistically.
Business News
Gitanjali Gems has been the biggest buzzer in today's trade and is up over 20%. The company has approved a buyback at Rs 120 per share.
Commenting on the same, GK Nair, Director-Finance, Gitanjali Gems, said the time when the board meeting took place, the company’s stock price was Rs 40-45, and based on some working from the Securities and Exchange Board of India, the Rs 120 per share price as well as the quantum was fixed.
He said the company’s growth would be muted in the March quarter: FY10 is likely to see reasonable growth, Nair added.
Kishore Biyani-owned Pantaloon Retail is learnt to be looking at raising up to Rs 1,550 crore. Sources say it will also be spilt up into three separate entities. Pantaloon Retail will now be called Future Markets and Consumer Groups Limited. This comes as a part of the restructuring exercise that Biyani has undertaken to unlock the value of his various businesses.
The company board has approved raising Rs 300 crore via preferential allotment. CNBC-TV18 first reported this a month ago. Sources say Kishore Biyani's fund raising plans go beyond this. Private equity players will infuse 500 crore in four different subsidiaries of the flagship company. They will get a little less than 26% in the company in return.
The company also plans to raise an additional Rs 750 crore for the retail business.Sources say business will be split between FMCG Limited and two new entities, Future Fashion and Consumer Enterprise
Commenting on the same, GK Nair, Director-Finance, Gitanjali Gems, said the time when the board meeting took place, the company’s stock price was Rs 40-45, and based on some working from the Securities and Exchange Board of India, the Rs 120 per share price as well as the quantum was fixed.
He said the company’s growth would be muted in the March quarter: FY10 is likely to see reasonable growth, Nair added.
Kishore Biyani-owned Pantaloon Retail is learnt to be looking at raising up to Rs 1,550 crore. Sources say it will also be spilt up into three separate entities. Pantaloon Retail will now be called Future Markets and Consumer Groups Limited. This comes as a part of the restructuring exercise that Biyani has undertaken to unlock the value of his various businesses.
The company board has approved raising Rs 300 crore via preferential allotment. CNBC-TV18 first reported this a month ago. Sources say Kishore Biyani's fund raising plans go beyond this. Private equity players will infuse 500 crore in four different subsidiaries of the flagship company. They will get a little less than 26% in the company in return.
The company also plans to raise an additional Rs 750 crore for the retail business.Sources say business will be split between FMCG Limited and two new entities, Future Fashion and Consumer Enterprise
Global Cues
Global markets were mixed. At the time of closing of Indian equities, European markets were trading higher; the FTSE went up 24.68 points or 0.62%, to 3,993.08. The CAC was trading at 3,010.26, up 24.52 points or 0.82% and the DAX was trading at 4,564.79, up 15 points or 0.33%.
However, the US futures were trading weak; the Dow Jones Futures were trading at 7,942, down 38 points or 0.48% and the Nasdaq Futures fell 0.3% or 4 points, to 1,313.
Asian markets ended mixed. Taiwan Weighted and Jakarta Composite gained 2% each. Nikkei and Kospi went up just 0.14-0.27%. However, Hang Seng and Straits Times declined 0.55-0.75%. Shanghai closed flat.
However, the US futures were trading weak; the Dow Jones Futures were trading at 7,942, down 38 points or 0.48% and the Nasdaq Futures fell 0.3% or 4 points, to 1,313.
Asian markets ended mixed. Taiwan Weighted and Jakarta Composite gained 2% each. Nikkei and Kospi went up just 0.14-0.27%. However, Hang Seng and Straits Times declined 0.55-0.75%. Shanghai closed flat.
Sensex ends below 11K; Realty dips 9%, Metal down 7%
The benchmark indices retreated sharply and snapped the two-day rally on the back of profit booking in heavyweights. Infrastructure, rate sensitives, commodities and telecom stocks witnessed huge selling pressure. The Sensex closed below the 11,000 mark while the Nifty slipped below the 3400 mark, though it touched the 3500 mark during the day.
Reliance Industries, ONGC, DLF, Bharti, SAIL, L&T, Reliance Communication, SBI, Tata Motors, BHEL and ICICI Bank were leading counters in this fall.
Broader indices followed the same trend and broke eight-day winning streak. Inflation was non-event of the day and global cues were mixed in trade today, so both haven't impacted our markets.
Incremental flows were negative in today's trade. Majority of selling pressure came in from domestic funds while local funds were booking profits across frontline stocks.
Individually, the 30-share BSE Sensex broke eight-day rally and closed at 10,947.40, down 337.33 points or 2.99%, after hitting day's low of 10,900.47. The 50-share NSE Nifty (broke two-day rally) touched an intraday low of 3354.20, before ending the day at 3369.50, down 3.29% or 114.65 points.
Rajat Bose, rajatkbose.com said, "I would watch the support level around 3,310 on the Nifty that support yesterday it held out. If that is broken then 3,270-3,240 should be a very strong support area. I don’t think this rally is going to taper off so easily, but I still classify it as a bear market rally."
Among the frontliners, Suzlon Energy fell 18.68%. Tata Motors, Reliance Infrastructure, DLF, Tata Steel, Unitech and Cairn India slipped 8-14%.
Broader indices - the BSE Midcap Index shut shop at 3,438.73, down 163.16 points or 4.53% and the Smallcap Index declined 4.72% or 194.46 points, to settle at 3,928.99. This sharp fall in indices kept market breadth in favour of declines; about 1054 shares advanced while 1941 shares declined. Nearly 100 shares remained unchanged.
Reliance Industries, ONGC, DLF, Bharti, SAIL, L&T, Reliance Communication, SBI, Tata Motors, BHEL and ICICI Bank were leading counters in this fall.
Broader indices followed the same trend and broke eight-day winning streak. Inflation was non-event of the day and global cues were mixed in trade today, so both haven't impacted our markets.
Incremental flows were negative in today's trade. Majority of selling pressure came in from domestic funds while local funds were booking profits across frontline stocks.
Individually, the 30-share BSE Sensex broke eight-day rally and closed at 10,947.40, down 337.33 points or 2.99%, after hitting day's low of 10,900.47. The 50-share NSE Nifty (broke two-day rally) touched an intraday low of 3354.20, before ending the day at 3369.50, down 3.29% or 114.65 points.
Rajat Bose, rajatkbose.com said, "I would watch the support level around 3,310 on the Nifty that support yesterday it held out. If that is broken then 3,270-3,240 should be a very strong support area. I don’t think this rally is going to taper off so easily, but I still classify it as a bear market rally."
Among the frontliners, Suzlon Energy fell 18.68%. Tata Motors, Reliance Infrastructure, DLF, Tata Steel, Unitech and Cairn India slipped 8-14%.
Broader indices - the BSE Midcap Index shut shop at 3,438.73, down 163.16 points or 4.53% and the Smallcap Index declined 4.72% or 194.46 points, to settle at 3,928.99. This sharp fall in indices kept market breadth in favour of declines; about 1054 shares advanced while 1941 shares declined. Nearly 100 shares remained unchanged.
Wednesday, April 15, 2009
Bulk Deals Apr 15
Scrip Quantity Deal Price
SAIL 6153369 112.9
HUL 1500200 232
SKF India 1296000 170.25
Birla Corp 945000 199.5
Financial Tech 594010 711
FAG Bearings 369906 310
Advanta 367620 515
Mah and Mah 300150 470
Kotak Mahindra 263385 405.75
Bajaj Auto 198227 628
SAIL 6153369 112.9
HUL 1500200 232
SKF India 1296000 170.25
Birla Corp 945000 199.5
Financial Tech 594010 711
FAG Bearings 369906 310
Advanta 367620 515
Mah and Mah 300150 470
Kotak Mahindra 263385 405.75
Bajaj Auto 198227 628
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