Daily Newsletter: 29th August, 2011
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  • 1. Aug 29, 2011Volume: 1 | Issue: 389| November 1, 2010INDIAN MARKET * 26-Aug 25-Aug % Change COMMENTARYBSE Sensex 15,849 16,146 (1.84) INDIANSE Nifty 4,748 4,840 (1.90) The markets slipped 2% as investors turned cautious and booked profits ahead of Ben Bernanke’s speechBSE Midcap 6,035 6,174 (2.25) later in the day, heavy selling in realty and metal shares also weighed. The BSE Sensex closed below theBSE Smallcap 6,911 7,100 (2.65) 16,000 level for the first time in 18 months as it lost over 297 points on weak global trend amid worldwideNifty Junior 9,598 9,815 (2.22) economic slowdown. The broad-based National Stock Exchange index Nifty also dipped below 4,800 point level to close 91 points lower at 4,748 following weak trend in the Asian region and lower opening in Europe.CNX Midcap 7,044 7,193 (2.07) Reliance Industries (down 4.6%), State Bank of India (down 3.3%) and ITC (down 2.7%) accounted for a loss of 140 points on the Sensex. Only three components on the Sensex ended in the green. Hero Motocorp, Mahindra & Mahindra and Infosys were up between 0.6-3% each. All the sectoral indices ended in the red.GLOBAL MARKETS 26-Aug 25-Aug % Change High-beta realty shares led the losses on expectations that the Reserve Bank of India will continue itsDow Jones Ind (USA) 11,285 11,150 1.21 aggressive monetary policy stance and tighten further in September. Metals were the next worst hit afterNasdaq Composite(USA) 2,479 2,420 2.45 Supreme Court ordered a ban on mining iron ore in Tumkur and Chitradurga districts in Karnataka. From theS&P 500 (USA) 1,177 1,159 1.51 broader markets, midcap and the small cap indices ended down almost 2% each. Market breadth wasFTSE 100 (UK) 5,129 5,131 (0.04) extremely negative, 2,221 stocks declined for 637 stocks which advanced.DAX (Germany) 5,537 5,584 (0.84)Nikkei 225 (Tokyo) 8,798 8,772 0.29 GLOBAL MARKETS Wall Street stocks rebounded on Friday as investors digested Federal Reserve Chairman Ben BernankesHang Seng (Hong Kong) 19,583 19,753 (0.86) remarks about the economy and regained hope the door was still open for more monetary stimulus downShanghai Comp (China) 2,612 2,615 (0.12) the road. The Dow Jones Industrial Average was up 140 points, or 1.21%, at 11,285. The Standard & PoorsKOSPI (South Korea) 1,779 1,765 0.81 500 Index was up 17.2 points, or 1.44%, at 1,176. The Nasdaq Composite Index was up 59 points, or 2.45%, atSTI (Singapore) 2,748 2,765 (0.60) 2,479. Technology stocks led the advance, with Cisco Systems Inc, Microsoft Corp and Intel Corp the topMSCI Emerging Market 376 378 (0.53) three gainers on the Dow.MSCI Frontier Market 482 493 (2.23) Asian stocks have advanced for a third day after Federal Reserve Chairman Ben S. Bernanke said the U.S. economy is slowly recovering and the central bank has more means to prop up growth if appropriate. Nikkei is up 0.21%, Hang Seng is up 1.22% and Strait Times is up 1.06%.BOND MARKETS 26-Aug 25-Aug Change10yr G-Sec Yield 8.26 8.23 0.03 CORPORATE/ ECONOMY NEWS1yr G-Sec Yield 8.16 8.16 0.00 Leading retailer Pantaloon Retail India (PRIL) has earmarked a Rs 900 crore expenditure over the nextLIBOR (6m) 0.39 0.39 0.00 three years on 9 million square feet of retail space, which it has already booked across India for expansion.LIBOR (1m) 0.16 0.16 0.00Interbank Call rate 8.0 8.00 0.00 State-run Allahabad Bank is mulling an entry into four Asian cities by opening overseas branches, with a view to increase its international footprint. However, the Reserve Bank of India (RBI) is yet to give the go- ahead on the proposal. At present, the Kolkata-headquartered banks sole overseas branch is in Hong Kong, while it has a representative office in mainland Chinas city of Shenzen. BSE Turnover Rs Cr(000) Sensex 16600 3.0 Elder Health Care said it will enter the Sri Lankan market by next month with the launch of branded personal care products and is scouting for acquisitions in Europe as part of global expansion plans. The 16400 2.5 Mumbai-based firm, which mainly sells in-licenced products, also plans to boost its own brands and will 16200 2.0 introduce about 5-6 products in the Indian market.The company plans to launch about 5-6 of its own products by the end of this year. 16000 1.5 15800 1.0 A proposed ferro alloys joint venture between SAIL and MOIL in Chhattisgarh worth an estimated Rs 400 15600 0.5 crore has been recommended for clearance by a green panel, but with certain riders. SAIL & MOIL Ferro Alloys Pvt Ltd, a joint venture of Steel Authority of India Ltd (SAIL) and MOIL, was formed to set up a 1 lakh 15400 0.0 tonnes per annum ferro alloys plant, with both the public sector firms having equity partnership of 50% 22-Aug 23-Aug 24-Aug 25-Aug 26-Aug each. Tata Group firm Titan Industries is eyeing a near three-fold increase in its turnover from watches division to Rs 3,500 crore by 2014-15, driven by new designs and network expansion. In watches, Titan targets Rs NSE Turnover Rs Cr(000) Nifty 35 billion turnover by FY 2015 (Rs 12.5 billion in FY2011) to be driven by network expansion, introduction 5000 14 of new designs as well as shift towards branded segment. 4950 12 4900 10 Drug firm Wockhardt plans to launch 12-15 products in the US market this fiscal and also increase its 4850 88.38 #DIV/0! reach in the European market. The company received 7 abbreviated new drug applications (ANDA) 8 4800 approvals this year. The company has plans to launch 12-15 products in the US market during the 6 financial year 2011-12The company, however, did not specify the details of the products that it would 4750 4700 4 launch this fiscal. 4650 2 With the cost of money moving up and freight rates diving, Shipping Corporation of India (SCI) has put 4600 0 on hold its plans of issuing fresh tenders to acquire new vessels. The 1961-founded company is already 22-Aug 23-Aug 24-Aug 25-Aug 26-Aug taking delivery of about 10 vessels this year, mostly bulk carriers, though there is overcapacity in the market.
  • 2. Aug 29, 2011 Volume: 1 | Issue: 389| November 1, 2010SECTOR 26-Aug 25-Aug % Change CORPORATE NEWSIT 4,720 4,737 -0.35% Wipro BPO inaugurated its first rural centre at Manjakkudi village in Tamil Nadu toAUTO 8,049 8,105 -0.69% capitalise on literate talent pool available in the region.TECk 3,025 3,054 -0.94%CG 11,532 11,669 -1.17% Sesa Goa Ltd, owned by London-listed Vedanta Plc, said its performance would beHC 5,820 5,889 -1.17% affected by an order from the countrys top court extending a ban on mining to two more districts of a key iron ore producing state. The Supreme Court on Friday extendedFMCG 3,893 3,974 -2.05% the ban to Tumkur and Chitradurga districts of the southern Indian state Karnataka,POWER 2,158 2,209 -2.28% Anita Shenoy, counsel for the Karnataka state government.CD 6,058 6,211 -2.47%BANKEX 10,246 10,508 -2.50% The RBI has said Indian banks would adhere to the globally agreed timeline forPSU 7,455 7,652 -2.58% implementation of Basel III norms and guidelines in this regard will be issued in the nearOIL&GAS 8,024 8,289 -3.19% future.METAL 11,145 11,572 -3.69%REALTY 1,608 1,676 -4.09% The combined market capitalisation of seven of the countrys top-10 firms declined by Rs 49,487.59 crore last week, while state-owned ONGC grabbing the top slot as the most valued firm toppling Reliance Industries. In the tussle for coal blocks between power generator NTPC Ltd and Lignite miner Neyveli Lignite Corporation (NLC), the coal ministry has decided to play fair. It will entertain its public sector undertaking NLCs request for the allocation of blocks thatBSE Upper Circuit Breakers earlier belonged to NTPC, only along with other companies during the bidding roundsCompany Name 26-Aug 25-Aug % Change that are due soon.The ministry had cancelled the allocation of five of the eight NTPCSTAR PAPER MILLS LTD 22.1 18.4 19.80 blocks earlier this year, alleging undue delays in their development. The power ministryRAJDHANI LEASING & IND. 179.8 171.2 5.00 had later intervened by requesting its coal sector counterpart to review its decision.SAMRAT PHARMACHEM LTD 29.6 28.2 5.00 While negotiations between the two ministries are still on, NLC has sought theAKANSHA CELLULAR 37.9 36.1 5.00 allocation of 0 three of the five blocks—Chatti Bariatu, Chatti Bariatu (South) andAKAR TOOLS LTD. 45.9 43.8 4.90 Kerandari. State-run lender Bank of India said it had raised $200 million to expand its foreign operations. The proceeds will be utilised for expansion at the foreign operations.However, it did not specify exact plans on the international expansion front. The government has decided to sanction Rs 2,000 crore to some public sector banks asBSE Lower Circuit Breakers part of its recapitalisation drive.The mode of disbursement would be decided later,Company Name 26-Aug 25-Aug % Change adding, the capital infusion would result in raising tier I capital or equity capital of theMORGANITE CRUCIBLE (INDIA) 413.5 459.4 (10.00) bank.WARREN TEA LTD. 402.0 423.2 (5.00) (5.00) State-run Navaratna oil explorer Oil India is chalking out an expansion andSKS MICROFINANCE 217.9 229.3 diversification strategy that could also include an entry into the city gas distributionKGN INDUSTRIES LTD 31.2 32.8 (4.90) space.The company is considering entering the gas transportation market, since itALLIED DIGITAL 24.1 25.3 (4.90) already has expertise in laying pipelines and transporting gas through pipelines. State-owned Oil and Natural Gas Corp (ONGC) is likely to start oil and gas production from Krishna-Godavari basin field GS-15, off the Andhra coast, next month. ONGC has asked the Petroleum Ministry to identify users for the gas and approve a price of USD 4.75 per million British thermal units. State-run power utility Sutlej Jal Vidyut Nigam (SJVN) has declared a dividend of Rs 330.93 crore for the 2010-11 financial year.COMMODITY 26-Aug 25-Aug % Change COMMODITY / CURRENCY NEWSBrent Crude Oil (USD/bbl) 111 111 0.49 2.12 Brent Crude Oil ended 0.49 percent higer at $111.25 per barrel . Gold ended higher byGold (Rs/10gm) 26,654 26,101 2.12 percent at Rs 26,654 and Silver closed up by 1.76 percent at Rs 61,973.Silver (Rs/kg) 61,973 60,901 1.76CURRENCY 26-Aug 25-Aug % Change The Indian Rupee closed lower against the dollar at Rs 46.13 as the Indian equityINR / USD 46.13 46.08 0.11 benchmarks ended on a very negative note.USD / Euro 1.44 1.44 -Yen / USD 76.98 77.11 (0.17)
  • 3. Aug 29, 2011 Volume: 1 | Issue: 389| November 1, 2010FUTURES PREMIUM/DISC Cash Futures P/D% ECONOMY / POLICY / GLOBAL NEWSGitanjali Gems 303.2 315.0 3.88 The countrys current account deficit fell to 2.6% of the gross domestic product inDCHL 49.8 50.6 1.51 2010-11, from 2.8% in the previous fiscal while the capital account surplus was 3.9% inNagarjuna Fertilizers 23.3 23.6 1.07 2009-10 and 3.5% in 2010-11, said the government.IndusInd Bank 227.0 229.2 0.95India Infoline 71.1 71.7 0.91 After securing Parliaments nod on key elements of Jan Lokpal bill, Anna Hazare todayIRB Infra 139.2 140.4 0.86 ended his 12-day-old fast declaring that electoral reforms will be next on hisNHPC 24.0 23.3 (2.92) agenda.The 74-year-old Gandhian accepted a glass of tender coconut water mixedBGR Energy 297.9 288.4 (3.19) with honey from a Dalit and a Muslim girl -- Simran and Ikrah -- at 10:20 am on the daisNeyveli Lignite 79.9 77.2 (3.32) at the Ramlila Ground ending over 288 hours of fast that began on August 16.Bhushan Steel 319.9 309.0 (3.41) Federal Reserve Chairman Ben S. Bernanke’s decision to extend next month’s policyAban Offshore 349.1 327.5 (6.19) meeting to two days stoked speculation the extra time may allow him to forge aIDBI 104.1 96.9 (6.87) stronger consensus on monetary easing.INSTITUTIONAL ACTIVITY (Rs Cr) 17-Aug 16-Aug YTD Chinese industrial companies’ profits rose 28.3 percent in the first seven months fromFII Cash Net -407.6 (210) 7,461 a year earlier, helping to support the expansion of the world’s fastest-growing majorFII Stock Futures 490.36 514 323 economy.FII Index Futures -139.78 799 8,899Mutual Fund -33 89 5,401 Libyan rebels said Muammar Qaddafi’s forces used civilians as human shields in an attempt to block opposition fighters from taking Sirte, one of the last remainingVALUATIONS P/E P/B DIV YLD loyalist strongholds.BSE 18.4 3.4 1.5NSE 18.2 3.1 1.4BSE500 Mcap/GDP Ratio 0.59 MOVERS & SHAKERS 4.91TOP 5 FRONTLINE GAINERS TOP 5 MIDCAP GAINERS TOP 5 SMALLCAP GAINERS Name Rs % Name Rs % Name Rs %HEROMOTOCO 1952.5 2.70 ABG Shipyard 355.6 3.81 Global Offshore 97.0 10.79Mahindra & Mahindra 704.7 1.20 Alfa Laval 1541.6 2.87 SE Investments 7.8 4.99Infosys 2204.6 0.68 Infotech Enter 119.9 2.39 Advanta India 333.0 4.73- - - Vardhman Tex 179.6 1.76 REISIX TENR 28.4 4.60- - - Gitanjali Gems 302.8 1.75 Dunlop India 14.4 4.35TOP 5 FRONTLINE LOSERS TOP 5 MIDCAP LOSERS TOP 5 SMALLCAP LOSERS Name Rs % Name Rs % Name Rs %Jaiprakash Asso 54.9 -7.58 TV18 Broadcast 37.9 -12.77 Bodal Chemicals 20.6 -16.09DLF 175.9 -5.76 MTNL 33.2 -9.80 MBL INFRA 99.2 -13.10Tata Steel 422.3 -4.77 Tata Teleservices 17.2 -9.26 Indosolar 8.1 -11.53RIL 719.5 -4.61 Sujana Towers 21.8 -8.42 Prraneta Inds 53.3 -11.31Coal India 359.8 -3.90 IVRCL LTD 32.2 -8.14 Ess Dee Alum 204.9 -11.28 BULK DEALSSCRIP NAME CLIENT NAME TYPE QTY % PRICENSEMindTree Limited Coffee Day Resorts Pvt Ltd BUY 5.68% 428.0MindTree Limited Ashok Soota SELL 5.50% 428.0Bharat Forge Ltd Barclays Capital Mauritius Limited SELL 0.55% 307.6Balrampur Chini Mills Balrampur Chini Mills Ltd BUY 0.86% 62.9Balrampur Chini Mills Barclays Capital Mauritius Limited SELL 0.87% 61.9BSEBedmutha Inds INVENTURE GROWTH & SECURITIES LTD. BUY 1.23% 123.0BGIL Films KAILASH CHANDRA BUY 0.80% 4.7Gemstone Invest SUKRATI CONSULTANCY SERVICES SELL 2.25% 8.9Monnet Ispat BLACKSTONE MANAGEMENT PARTNERS BUY 1.80% 478.1Sanraa Media JMP SECURITIES PVT LTD BUY 2.30% 0.1