Daily newsletter - October 18, 2011


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Daily newsletter - October 18, 2011

  1. 1. Oct 18, 2011Volume: 1 | Issue: 389| November 1, 2010INDIAN MARKET * 17-Oct 14-Oct % Change COMMENTARYBSE Sensex 17,025 17,083 (0.34) INDIANSE Nifty 5,118 5,132 (0.27) The Indian markets ended the day with modest losses, starting off the week on a consolidation modeBSE Midcap 6,189 6,190 (0.01) following last weeks stellar gains. The benchmark indices were rather subdued despite a strong rally in AsianBSE Smallcap 6,923 6,908 0.22 and European markets. After opening with smart gains, the key Indian equity indices were unable to hold onNifty Junior 9,904 9,895 0.09 to the early gains on the back of selling pressure in Oil & Gas, Capital Goods, Power and Telecom stocks. TheCNX Midcap 7,140 7,136 0.05 advance-decline ratio was negative as small-Cap and mid-Cap shares too were inactive. Shares of Reliance Industries lost 4%, after its quarterly earnings failed to impress the markets, and on news reports that it will halt drilling because of a review on the internal valuations of its exploration activity by the government.GLOBAL MARKETS 17-Oct 14-Oct % Change Finally, the BSE Sensex ended at 17,025, down 58 points. It had earlier touched a days high of 17,188 and aDow Jones Ind (USA) 11,397 11,644 (2.13) days low of 16,928 after opening at 17,176. The NSE Nifty closed at 5,118, down 14 points. The market breadth was weak. Out of 2,873 stocks traded on the BSE, there were 1,311 advancing stocks asNasdaq Composite(USA) 2,615 2,668 (1.99) against 1,446 declines.S&P 500 (USA) 1,201 1,224 (1.91) GLOBAL MARKETSFTSE 100 (UK) 5,437 5,466 (0.54) Global stocks and the euro fell, retreating after their best weekly gains in more than two years, as GermanyDAX (Germany) 5,859 5,967 (1.81) damped expectations for a fast resolution to Europe’s debt crisis and a report showed New York-areaNikkei 225 (Tokyo) 8,880 8,748 1.50 manufacturing shrank more than forecast. Equities and the euro headed lower as Steffen Seibert, GermanHang Seng (Hong Kong) 18,874 18,501 2.01 Chancellor Angela Merkel’s chief spokesman, said European Union leaders won’t provide the quick ending toShanghai Comp (China) 2,440 2,432 0.36 the debt crisis that global policy makers are pushing for at an Oct 23 summit. The Standard & Poor’s 500KOSPI (South Korea) 1,865 1,835 1.62 Index slid 1.9 percent to 1,201.STI (Singapore) 2,779 2,744 1.26 Asian stocks fell from a one-month high, the won weakened and copper led metals lower after GermanyMSCI Emerging Market 365 361 1.11 doused expectations of a solution to Europe’s debt crisis this year and China’s economy grew at the slowest pace in two years. Stocks and metals extended losses after China’s gross domestic product expanded 9.1MSCI Frontier Market 481 479 0.42 percent last quarter, trailing the 9.3 percent forecast. Nikkei is trading down 1.5 percent, Hang Seng is down 3.2 percent and Strait Times is down 1.7 percent. SGX Nifty is trading down 53 points, at 5,068 indicating a gap-down opening.BOND MARKETS 17-Oct 14-Oct Change10yr G-Sec Yield 8.75 8.77 (0.02) CORPORATE/ ECONOMY NEWS1yr G-Sec Yield 8.51 8.51 0.00 Mortgage lender HDFC Ltd posted a 20% rise in net profit for the quarter-ended September led byLIBOR (6m) 0.21 0.21 0.00 higher income from operations and profit on sale of investments. HDFC said its net profit increased toLIBOR (1m) 0.16 0.15 0.01 Rs 971 crore from Rs 808 crore a year ago. Income from operations rose to Rs 4,077 crore from Rs 2,907Interbank Call rate 8.29 8.29 0.00 crore in the year-ago period. Profit from sale of investments stood at Rs 86.8 crore while its net interest margin for the September quarter was at 4.3%. HDFC competes with Indias top commercial bank State Bank of India, No. 2 ICICI Bank and a host of other banks and financial institutions for a bigger share of the mortgage loan market. BSE Turnover Rs Cr(000) Sensex 17200 3.0 Energy major Reliance Industries (RIL) will suspend oil and gas drilling pending an internal valuation of 17100 its exploration and production strategy, a newspaper reported on Monday citing sources briefed by the 17000 2.5 company. The firm, Indias most valuable company by market capitalisation, has seen its growth outlook 16900 2.0 and market value hit hard this year by falling gas output from its huge gas fields off the east coast. 16800 16700 1.5 16600 State-run MOIL said its proposed joint ventures with Steel Authority of India (SAIL) and Rashtriya 16500 1.0 Ispat Nigam (RINL) for setting up facilities to make ferro alloy in Chhattisgarh and Andhra Pradesh are 16400 0.5 likely to be operational in the next fiscal.An Environment Ministry panel in August has already given the 16300 green nod to MOILs proposed Rs 400-crore joint venture with SAIL for setting up 1.06 lakh tonne per 16200 0.0 annum ferro alloy manufacturing facility in Chhattisgarh. The firm, the largest domestic manganese 11-Oct 12-Oct 13-Oct 14-Oct 17-Oct producer, had separately signed MoUs with SAIL and RINL to set up the two facilities making ferro alloy, used in steel making for de-oxidising purposes. Anil Ambani group firm Reliance Power said it paid over Rs 1,474 crore to redeem overseas bonds. The NSE Turnover Rs Cr(000) Nifty company has paid the principal amount of $299.90 million corresponding to Rs 1,474.93 crore due on 5150 14 foreign currency convertible bonds (FCCBs). 5100 12 10 Oil and Natural Gas Corporation (ONGC) is ready to supply gas to two upcoming thermal power 5050 88.38 #DIV/0! projects in the North-East -- its own plant at Palatana, in South Tripura district, and NEEPCOs Monarchak 8 5000 unit, in West Tripura district -- official sources said on 17th October. As per the schedule, the first phase 6 of the 726-MW Palatana power project being implemented by ONGC Tripura Power Company Ltd 4950 4 (OTPCL) -- a special purpose vehicle between ONGC, the Tripura government and IL&FS -- will be 4900 2 operational by February next year, though it was supposed to come onstream by the end of this year. 4850 0 11-Oct 12-Oct 13-Oct 14-Oct 17-Oct
  2. 2. Oct 18, 2011 Volume: 1 | Issue: 389| November 1, 2010SECTOR 17-Oct 14-Oct % Change CORPORATE NEWSAUTO 8,989 8,849 1.58% SKIL Groups flagship company Pipavav Defence and Offshore Engineering said thereCD 6,805 6,704 1.50% was no disruption of any kind at its production units due to Income-Tax officials visitingBANKEX 11,131 11,065 0.60% the firms premises last week for verification of certain issues.REALTY 1,836 1,827 0.52%FMCG 3,999 3,992 0.19% The strike at Maruti Suzuki Indias (MSI) Manesar plant entered its 11th day, with -0.11% workers protesting outside the factory premises, but the company said it has resumedMETAL 11,314 11,327 partial production at the plant. The company also said production at its main plant atHC 5,893 5,901 -0.14% Gurgaon has resumed after a two-day closure last week due to component supplyIT 5,670 5,699 -0.50% constraints from Suzuki Powertrain India Ltd (SPIL).TECk 3,434 3,453 -0.55%PSU 7,409 7,460 -0.69% Diversified conglomerate Future Group announced its entry into the rural wholesale andPOWER 2,143 2,169 -1.18% distribution business with the opening of its first Aadhaar Wholesale store in Gujarat.CG 10,891 11,042 -1.37% With plans to open 65 Aadhaar Wholesale stores across the country, Future Group hasOIL&GAS 8,657 8,859 -2.29% set up its first store at Kalol, Gujarat, through its subsidiary, Aadhaar Retailing, and another one will soon come up in Punjab. he company expects to develop an around Rs 4,000 crore business through this format in the near future. The size of the rural consumer goods market is estimated to reach Rs 16,70,100 crore by 2015, according to estimates by consulting firm McKinsey. Trissur-based South Indian Banks net profit for the quarter ended September 2011 roseBSE Upper Circuit Breakers more than 24% year-on-year to Rs 95 crore on the back of higher loan book growth. ThisCompany Name 17-Oct 14-Oct % Change is the highest ever net profit the bank has recorded in a single quarter. Deposits too grewMaharaja Shree 523 436 20.00 at 32% to Rs 33,038. CASA (current account and savings account) rose nearly 18% to RsVinyl Chemicals 11.3 9.4 20.00 7,038 crore.Sanraa Media 0.1 0.1 10.00 State-owned fuel retailers lost Rs 21,374 crore in the second quarter on sellingSuave Hotels 196.1 178.3 10.00 0 diesel, domestic LPG and kerosene at government-controlled rates that are way belowELECTROTHERM 140.7 134.0 5.00 the cost of production. The three firms are losing Rs 7.06 per litre on diesel, Rs 25.90 per litre on kerosene sold through the public distribution system (PDS) and Rs 270.50 per 14.2-kg LPG cylinder supplied to domestic households for cooking purposes. The statement said fuel retailers lost Rs 37,719 crore on selling diesel in the April-September period, Rs 13,361 crore on PDS kerosene and Rs 13,820 crore on domestic LPG. The fall in the value of the rupee against the dollar increases the cost of imported crude oil. India isBSE Lower Circuit Breakers dependent on imports to meet 79% of its oil needs.Company Name 17-Oct 14-Oct % Change The countrys largest two-wheeler maker Hero MotoCorp said it will soon start selling theBombay Oxygen 7,220.1 7,600.0 (5.00) first Hero branded bike to be launched after the break-up of Hero Honda last year .CNI Research 2.7 2.8 (5.00)Indus Finance Corp 83.7 88.1 (5.00) Jubilant Life Sciences plans to invest Rs 500 crore on capital expenditure activities in theArora Fibres 20.0 21.1 (5.00) current financial year as it looks to mop up an additional Rs 1,200 crore in revenues.Binayak Tex 464.3 488.7 (5.00) Tata Consultancy Services (TCS), Indias largest software services exporter, reported a 14.7-percent rise in quarterly net profit, marginally below estimates as uncertainty in the global economy weighed on new outsourcing orders. The company reported a 25.3% rise in revenue at Rs 11,633 crore, as per Indian Gaap versus Rs 9290 crore YoY. Q2 operating margins were at 27.1% versus 28.1% whereas Q2 net profit margin was at 21% versus 22.9% YoY. Revenue growth in dollar terms was up 26% YoY; 4.7% QoQ. International business growth was up 6.2% sequentially.COMMODITY 17-Oct 14-Oct % Change COMMODITY / CURRENCY NEWSBrent Crude Oil (USD/bbl) 110 113 (2.02)Gold (Rs/10gm) 26,810 26,890 (0.30) Brent Crude Oil ended lower by 2.02% at USD$110 per barrel. Gold ended lower by 0.30% at Rs 26,810 and Silver closed lower by 1.25% at Rs 52,730.Silver (Rs/kg) 52,730 53,399 (1.25)CURRENCY 17-Oct 14-Oct % Change The Indian Rupee closed higher against the dollar at Rs 48.95 as the Indian equityINR / USD 48.95 49.01 (0.12) benchmarks ended on a negative note.USD / Euro 1.37 1.39 (1.44)Yen / USD 77.22 76.86 0.47
  3. 3. Oct 18, 2011 Volume: 1 | Issue: 389| November 1, 2010FUTURES PREMIUM/DISC Cash Futures P/D% ECONOMY / POLICY / GLOBAL NEWSS&P500 1,184.5 1,208.3 2.01 Citigroup Inc reported higher third-quarter net income on Monday as the bank set asideMCLEODRUSS 251.3 254.3 1.19 less money to cover bad loans. Citigroup, the third-largest US bank by assets, reportedDJIA 11,355.0 11,485.0 1.14 net income of $3.8 billion, or $1.23 per share, up from $2.2 billion, or 72 cents perLITL 15.3 15.5 0.98 share, a year ago.VIDEOIND 175.6 177.0 0.80EDUCOMP 266.7 268.8 0.79 The Export-Import Bank of India (Exim Bank) has entered into an agreement withMRPL 67.7 66.1 (2.44) Senegal for extending a $27.5 million soft loan to finance exports and consultancyMOSERBAER 23.4 22.9 (2.35) services for a rural electrification project in the African nation. The Line of Credit (LoC) isBAJAJHIND 38.3 37.4 (2.35) effective from August 24 this year and the date of execution of the agreement is AprilIDEA 97.4 95.7 (1.80) 21, the Reserve Bank said in a statement.ABAN 405.4 400.0 (1.33)DLF 236.5 233.9 (1.10)INSTITUTIONAL ACTIVITY (Rs Cr) 7-Oct 5-Oct YTDFII Cash Net 491.2 -969.3 (448)FII Stock Futures -34.61 -137.75 8,194FII Index Futures 1581.53 74.53 12,989Mutual Fund 184.1 103.7 595VALUATIONS P/E P/B DIV YLDBSE 17.7 3.2 1.6NSE 17.6 3.1 1.6BSE500 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 %Tata Motors 188 4.50 JPINFRATEC 60.6 19.76 Maharaja Shree 522.7 20.00Maruti Suzuki 1053.05 2.39 D B REALTY 58.1 7.00 Emami Paper 42.0 18.84DLF 235.85 1.53 KEC Intl 60.0 5.26 PRADIPOVERS 76.0 15.85Sterlite Inds 120.85 1.51 D B CORP 217.9 4.78 NIIT 49.9 14.33Bajaj Auto 1650.75 1.27 Infotech Enter 117.8 4.71 NIIT Tech 239.5 13.51TOP 5 FRONTLINE LOSERS TOP 5 MIDCAP LOSERS TOP 5 SMALLCAP LOSERS Name Rs % Name Rs % Name Rs %RIL 833.2 -3.88 Shri Ganesh Spi 7.1 -4.97 Ruchi Infra 22.3 -10.64NTPC 168.45 -2.63 VAARAD 76.2 -4.93 Arss Infra Proj 319.3 -8.54Jaiprakash Asso 72.15 -2.17 Network18 Media 60.7 -4.33 Fineotex Chem 196.2 -7.97BHEL 326.3 -2.11 Jindal Saw 133.0 -4.14 Wire & Wireless 8.8 -6.67L&T 1379.9 -1.98 Anant Raj Inds 49.8 -3.77 Balaji Tele 31.0 -6.64 BULK DEALSSCRIP NAME CLIENT NAME TYPE QTY % PRICENSEGitanjali Gems Limited JAIWANTI MERCANTILES PRIVATE LIMITED BUY 1.53% 346.3Hexaware Technologies Lim ELDER VENTURE LLP BUY 2.53% 74.7Rushil Decor Limited PRAKASHBHAI ISHWARBHAI RANA BUY 1.27% 185.0Gravita India Limited CROSSEAS CAPITAL SERVICES PVT SELL 0.63% 442.7Savera Industries Ltd MANOJ KUMAR GOEL BUY 1.23% 40.5BSEBeryl Drugs GLOBALWORTH SECURITIES LIMITED BUY 0.80% 12.8Bloom Dekor SUNIL SITARAM GUPTA BUY 1.20% 14.7Eastern Sugar INDO AUSTRO CORPORATION PVT LTD SELL 1.52% 17.3Gemstone Invest KIRAN BHIKU BHANAES BUY 2.50% 8.8Vertex Sec MANISH RAMESHBHAI VYAS SELL 0.63% 206.9