Daily Newsletter: 2nd September, 2011


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Daily Newsletter: 2nd September, 2011

  1. 1. Sept 2, 2011Volume: 1 | Issue: 389| November 1, 2010INDIAN MARKET * 30-Aug 29-Aug % Change COMMENTARYBSE Sensex 16,677 16,416 1.59 INDIANSE Nifty 5,013 4,920 1.89 Indian markets had a splendid first two days in a truncated trading week, with the main Indian stockBSE Midcap 6,274 6,184 1.44 indices climbing smartly following five straight weeks of steep declines. The Nifty on Tuesday re-claimedBSE Smallcap 7,131 7,054 1.10 the psychologically important 5,000 mark while the BSE Sensex ended above 16,500, as investorsNifty Junior 9,996 9,872 1.26 continued their gradual return to the market after being in the sidelines for over a month. The Nifty has recouped around 280 points or nearly 6% in the past two trading sessions alone. Finally, the BSE SensexCNX Midcap 7,309 7,202 1.49 ended at 15,676, adding 260 points on Tuesday. It had earlier touched a days high of 16,715 and a days low of 16,443 after opening at 16,585. The NSE Nifty closed at 5,001, adding 81 points on Tuesday. Indian equity benchmarks managed to recover from intraday lows hit in the wake of the GDP data and helped byGLOBAL MARKETS 01-Sep 31-Aug % Change sustained strength in select heavyweights. Tuesday’s rally was led by Metals, Realty, Banking and IT stocks.Dow Jones Ind (USA) 11,494 11,614 (1.03) Even Mid-Cap and Small-Cap stocks saw buying momentum. The only BSE sectoral index to end in the redNasdaq Composite(USA) 2,546 2,579 (1.29) was the BSE FMCG index, down 0.3%.S&P 500 (USA) 1,204 1,219 (1.20) *Indian financial, commodity and currency markets were shut on Wednesday and Thursday on account ofFTSE 100 (UK) 5,419 5,443 (0.44) ‘Ramzan Eid’ and ‘Ganesh Chaturthi’.DAX (Germany) 5,731 5,785 (0.94)Nikkei 225 (Tokyo) 9,061 8,955 1.18 GLOBAL MARKETS U.S. stocks slid, halting a four-day rally, Treasuries advanced and commodities declined as investors turnedHang Seng (Hong Kong) 20,585 20,535 0.25 their attention to forthcoming (Friday) report on American jobs to gauge the outlook for the economy. TheShanghai Comp (China) 2,556 2,568 (0.45) Standard & Poor’s 500 Index lost 1.2 percent to 1,204, after surging 5.1 percent in the previous fourKOSPI (South Korea) 1,881 1,880 0.03 sessions. The Dollar Index climbed for a third straight day, its longest rally since June, while wheat, cornSTI (Singapore) 2,867 2,885 (0.63) and zinc led losses in commodities.MSCI Emerging Market 401 399 0.50 Asian stocks snapped a six-day streak of advances ahead of reports expected to show the U.S. jobless rateMSCI Frontier Market 504 502 0.40 remained above 9 percent, adding to signs that growth in the world’s largest economy is weakening. Nikkei is down over a percent, Hang Seng is down 0.7 percent, Shanghai down 0.4 percent. SGX Nifty is trading flat, at 5,056.BOND MARKETS 30-Aug 29-Aug Change10yr G-Sec Yield 8.32 8.32 0.00 CORPORATE/ ECONOMY NEWS1yr G-Sec Yield 8.30 8.16 0.14 Confirming fears of a slowdown, Indias economy grew by just 7.7% in the first quarter of the 2011-LIBOR (6m) 0.39 0.39 0.00 12 financial year, compared to 8.8% growth in the same three-month period last fiscal, which wasLIBOR (1m) 0.16 0.16 0.00 mainly due to the poor performance of the manufacturing sector. The government has projected overallInterbank Call rate 8.0 8.0 0.00 economic growth in the current fiscal at around 8.5%, while the Reserve Bank has projected the growth to moderate to 8% from 8.5% in FY11. Maruti Suzuki has decided to bring forward the launch of its second Manesar plant and start BSE Turnover Rs Cr(000) Sensex commercial production in a day or two, instead of by the month-end as planned earlier. 16800 3.0 16600 Unitech, the second largest real estate company in India, is planning to sell all three hotels that it is 2.5 currently developing, said vice-president (corporate planning) R Nagaraju. 16400 2.0 16200 Dr. Reddy’s Laboratories on Tuesday announced that it has launched its over-the-counter (OTC) 1.5 16000 Fexofenadine HCl and Pseudoephedrine HCl extended release tablets 180 /240 mg. The United States 15800 1.0 Food & Drug Administration (FDA) approved Dr. Reddy’s Abbreviated New Drug Application (ANDA) for 0.5 Fexofenadine HCl and Pseudoephedrine HCl extended release tablets on June 22nd. Dr. Reddy’s will 15600 market the product under store brand labels in the U.S. market. 15400 0.0 24-Aug 25-Aug 26-Aug 29-Aug 30-Aug The Cabinet Committee on Economic Affairs (CCEA) on Tuesday approved disinvestment of 5% paid up equity in Bharat Heavy Electricals Limited (BHEL), a Central Public Sector Enterprise (CPSE) engaged in execution of heavy engineering / electrical equipment manufacturing projects. The Government currently holds 67.72% shareholding in BHEL. The stake sale in BHEL will be done through 100% book NSE Turnover Rs Cr(000) Nifty building process in the domestic market. 5050 14 5000 12 Indias fiscal deficit during April to July period was more than half of the FY12 target and 2.5 times higher 4950 than what it was in the same period a year ago, as net revenue collections moderated and expenditure 4900 10 88.38 #DIV/0! increased, government data showed on Tuesday. 4850 8 4800 6 State-owned Oil and Natural Gas Corps (ONGC) much-delayed Rs 12,000 crore follow-on public offer 4750 4 may open on September 20 or 27. 4700 4650 2 Auto maker Mahindra & Mahindra has reported 30.38% jump in sales at 37,684 units in August 2011. 4600 0 The company had sold 28,903 units in the corresponding month of 2010, Mahindra & Mahindra (M&M) 24-Aug 25-Aug 26-Aug 29-Aug 30-Aug said in a statement.
  2. 2. Sept 2, 2011 Volume: 1 | Issue: 389| November 1, 2010SECTOR 30-Aug 29-Aug % Change CORPORATE NEWSMETAL 12,097 11,661 3.74% Manipal University and Bank of Baroda have launched Baroda Manipal School ofREALTY 1,740 1,679 3.62% Banking and inaugurated its new campus located in Bangalore. The school is a fullyBANKEX 10,904 10,665 2.24% residential campus offering a one-year full time programme on various areas of bankingIT 5,062 4,959 2.08% and management disciplines. Students will be awarded a post graduate diploma inTECk 3,205 3,151 1.71% banking and finance by Manipal University.HC 5,962 5,874 1.51% Indias 180,000 barrels per day (bpd) Bathinda refinery started crude oil processing inAUTO 8,396 8,292 1.26% trial runs on August 29 a source with direct knowledge of the plant told Reuters onOIL&GAS 8,353 8,257 1.16% Tuesday, with first products expected in four to five days. The refinery is owned byPOWER 2,233 2,218 0.68% Hindustan Mittal Energy Ltd (HMEL), a joint venture between state-run HindustanCD 6,263 6,223 0.66% Petroleum and billionaire Lakshmi Mittals Mittal Energy.CG 12,047 12,000 0.39%PSU 7,616 7,605 0.13% HCL Technologies on Tuesday have entered into a partnership with BaswareFMCG 3,950 3,962 -0.32% Corporation for induction of the Finnish software providers purchase-to-pay solutions to help improve its own customer delivery processes and achieve cost reductions. HCL will leverage Baswares invoice automation, procurement and connectivity solutions for process enhancement and increased cost reduction to help its clients improve productivity. Future Group is in talks with a clutch of potential buyers including JPMorgan andBSE Upper Circuit Breakers Kohlberg Kravis Roberts and Co to sell its financial services arm, Future Capital Holdings,Company Name 30-Aug 29-Aug % Change sources with direct knowledge of the matter told Reuters.BHARATI SHIPYARD 108.6 90.5 20.00POLYTEX INDIA 263.0 239.1 10.00 Energy company Oil and Natural Gas Corp plans to commission two largeAVT NATURAL PRODUCTS 341.4 325.1 5.00 petrochemicals projects it is developing through joint ventures in 2012 and 2013BINAYAK TEX PROCESSORS 420.4 400.4 5.00 respectively, its chairman said in a written speech to shareholders on Tuesday. 0SAHARA HOUSINGFINA CORP 65.1 62.0 5.00 Sanghvi Forging & Engineering Ltd, one of the top engineering and forging companies in India announced that it has bagged two orders worth Rs. 10 cr. The first order is from the Of! & Gas sector. The estimated value of the Project is Rs, 4.S Cr and it is expected to be completed in the period of next 12 months. The second order is from the Ship Building sector. The estimated value of the Project Is Rs, 5,5 Cr and is also expected to be completed In the period of next 12 months.BSE Lower Circuit BreakersCompany Name 30-Aug 29-Aug % Change Kavveri Telecom launched a 16dBi Array Antennae in AWS Band (1710-2155 mhz) forTRANSCHEM 14.6 16.3 (10.00) the North American Market. This product will be used for cellular networks in AWS BandKAIRA CAN CO 285.1 300.1 (5.00) in North America. This product could have a requirement of about USD 10 million over (5.00) the next 3 years.GAYATRI PROJECTS 153.0 161.1PRABHAV INDUSTRIES 117.1 123.3 (5.00) Hindustan Unilever Limited (HUL), India’s Largest FMCG company, and Star Bazaar,NIRAV COMMERCIALS 205.3 216.0 (5.00) of Trent Hypermarket Limited, the retail arm of Tata Group, on Tuesday announced a unique consumer initiative titled ‘India’s Favourites’ to promote the cause of education of underprivileged children. Aster Silicates Ltd has said that the Company has done successful trials on small scale for growing cash crops and nutritive, value added products in desert land. Company plans to put a demo plant after Diwali on 10 Acres of land in desert area and also plans to take 100 Acres of land on lease from Government before March in desert area. Hence, Company has done two major breakthrough. Zuari Industries Limited (ZIL), a K K Birla Group of Companies venture, has shut down its Urea manufacturing plant temporarily due to shortage of feedstock, a senior official said on Wednesday.COMMODITY 01-Sep 31-Aug % Change COMMODITY / CURRENCY NEWSBrent Crude Oil (USD/bbl) 115 113 1.72 1.73 Brent Crude Oil ended 1.72 percent higer at $115 per barrel . Gold ended higher by 1.73Gold (Rs/10gm) 27,200 26,738 percent at Rs 27,200 and Silver closed up by 1.46 percent at Rs 62,220.Silver (Rs/kg) 62,220 61,325 1.46CURRENCY 30-Aug 29-Aug % Change The Indian Rupee closed lower against the dollar at Rs 46.11 as the Indian equityINR / USD 46.11 46.04 0.15 benchmarks ended on a very positive note.USD / Euro 1.44 1.46 (1.37)Yen / USD 76.76 76.71 0.07
  3. 3. Sept 2, 2011 Volume: 1 | Issue: 389| November 1, 2010FUTURES PREMIUM/DISC Cash Futures P/D% ECONOMY / POLICY / GLOBAL NEWSJSWISPAT 14.0 14.8 5.36 Many of the worlds biggest energy companies may have to surrender most of the gasCROMPGREAV 143.2 150.8 5.34 from Iraqs vast southern oilfields to a processing and export project led by Shell, aHAVELLS 324.2 340.0 4.87 final draft contract between Baghdad and Europes biggest company, obtained byDISHTV 76.6 79.3 3.52 Reuters, shows. Oil giants including Royal Dutch Shell, BP, US-based Exxon, ChinasHINDOILEXP 119.3 123.5 3.48 CNPC, and Italys Eni signed technical service contracts to develop three oilfields inGODREJIND 194.3 200.5 3.19 southern Iraq in 2009-2010.HINDPETRO 377.6 360.9 (4.42)IDBI 109.1 105.3 (3.48) Annual inflation in the Food Articles group rose to 10.05% in the week ended AugustSCI 85.8 83.1 (3.21) 20, from 9.80% in the previous week, the Commerce & Industry Ministry said in aIOC 306.6 297.9 (2.84) statement.BGRENERGY 324.9 316.5 (2.57) As the income of BCCI was entirely exempt from tax under section 12A of the IncomeCHAMBLFERT 107.8 105.6 (2.04) Tax Act 1961, the question of disclosing low earnings to avoid paying taxes did not arise. Gross receipt disclosed by BCCI in its tax returns for the assessment years 2007-INSTITUTIONAL ACTIVITY (Rs Cr) 18-Aug 17-Aug YTD 08 to 2010-11, are Rs. 651.82 crore, Rs. 1,000.40 crore, Rs.1.387.02 crore and Rs.FII Cash Net -1281.7 -407.6 7,460 1,666.84 crore respectively IPL is a part of BCCI and has no separate legal status.FII Stock Futures 7.41 490.36 323FII Index Futures -326.55 -139.78 8,899 Indias infrastructure output accelerated in July to notch its highest growth in 15Mutual Fund -66.2 -33 5,401 months, as strengh in Steel, Cement and Electricity offset weakness in Crude Oil, Natural Gas and Fertilizers space. The Index of Eight core industries, having aVALUATIONS P/E P/B DIV YLD combined weight of 37.90% in the Index of Industrial Production (IIP) with base 2004-BSE 18.4 3.4 1.5 05, stood at 143.22 in July 2011. It was at 139.05 in June and stood at 132.91 in July 2010.NSE 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 %DLF 196.4 6.42 State Bank Mysre 602.3 15.38 Confidence Petro 10.8 16.20Jindal Steel 519.8 5.34 Manappuram Finance 50.4 14.81 Man Inds 145.5 15.43Sun Pharma 490.3 5.16 State Bank Trav 682.0 13.90 Bharati Ship 104.0 14.86Tata Steel 468.6 4.79 State Bank BikJpr 450.1 12.68 Karuturi Glob 9.1 14.36Hindalco Inds 150.4 4.34 Bajaj Elect 193.4 10.23 ICSA India 76.4 13.70TOP 5 FRONTLINE LOSERS TOP 5 MIDCAP LOSERS TOP 5 SMALLCAP LOSERS Name Rs % Name Rs % Name Rs %ONGC 263.2 -4.29 Simplex Infra 230.4 -10.09 Prraneta Inds 38.4 -9.96ITC 200.0 -0.97 Bajaj Finserv 541.6 -5.30 Bodal Chemicals 16.8 -8.45Tata Power 1041.3 -0.54 SKS Microfinance 198.4 -4.98 Prabhav Inds 117.1 -4.99L&T 1609.8 -0.31 IFCI 37.7 -3.46 Asian Star-$ 1093.0 -4.96Bharti Airtel 404.2 -0.16 EDELWEISS 28.9 -2.70 Shri Ganesh Spi 33.5 -4.96 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