Daily Newsletter: 26th August, 2011


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Daily Newsletter: 26th August, 2011

  1. 1. Aug 26, 2011Volume: 1 | Issue: 389| November 1, 2010INDIAN MARKET * 25-Aug 24-Aug % Change COMMENTARYBSE Sensex 16,146 16,285 (0.85) INDIANSE Nifty 4,840 4,889 (1.01) The markets drifted lower in the last leg of the trade due to futures and options expiry; selling pressure in ITBSE Midcap 6,174 6,229 (0.88) and metal shares also weighed. After opening marginally firm, the Nifty witnessed a choppy session asBSE Smallcap 7,100 7,159 (0.82) traders’ rolled over positions from August to the September series. The Nifty touched a high of 4,915 duringNifty Junior 9,815 9,939 (1.25) the opening trades and moved between gains and losses before giving into selling pressure in the last halfCNX Midcap 7,193 7,266 (1.01) an hour of the trade. The Nifty finally closed at 4,840, down 49 points, and the Sensex ended at 16,146, down 139 points. On the macroeconomic front, the food price index rose 9.80%, while the fuel price index climbed 13.13% in the year to August 13. Primary articles inflation came in at 12.40%. BSE IT index was the worst hit; Mphasis, Oracle and HCL Technologies were down between 5-7% each. Infosys, HDFC and HDFC Bank (downGLOBAL MARKETS 25-Aug 24-Aug % Change 2-3% each) were the major losers on the Sensex, dragging the index down by almost 80 points. Among theDow Jones Ind (USA) 11,150 11,321 (1.51) gainers were Tata Motors, ONGC and Bharti Airtel, up 1-2% each. From the broader markets, midcap and theNasdaq Composite(USA) 2,420 2,468 (1.94) smallcap indices ended down 0.9% each.S&P 500 (USA) 1,159 1,178 (1.56) The market breadth was extremely negative. 1,638 stocks declined for 1,138 stocks which advanced.FTSE 100 (UK) 5,131 5,206 (1.44)DAX (Germany) 5,584 5,681 (1.71) GLOBAL MARKETSNikkei 225 (Tokyo) 8,772 8,640 1.54 U.S. stocks fell, snapping a three- day rally, after jobless claims unexpectedly increased and selling in GermanHang Seng (Hong Kong) 19,753 19,467 1.47 futures sparked a rout in global equities. Bank of America Corp. jumped 9 percent on news that Warren Buffett will invest $5 billion in the troubled bank. The S&P 500 fell 1.56 percent to 1,159. The benchmarkShanghai Comp (China) 2,615 2,541 2.92 gauge rallied 4.8 percent during the previous three days. The Dow Jones Industrial Average declined 170.89KOSPI (South Korea) 1,765 1,755 0.56 points, or 1.5 percent, to 11,150 yesterday.STI (Singapore) 2,765 2,720 1.65MSCI Emerging Market 378 381 (0.79) Asian stocks swung between gains and losses ahead of a speech by U.S. Federal Reserve Chairman Ben S.MSCI Frontier Market 493 492 0.20 Bernanke at a meeting of central bankers and before reports expected to show growth is slowing in the world’s largest economy. Nikkei is trading down by 13 points. Hang Seng is also down by 35 points.BOND MARKETS 25-Aug 24-Aug Change10yr G-Sec Yield 8.23 8.26 (0.03) CORPORATE/ ECONOMY NEWS1yr G-Sec Yield 8.16 8.16 0.00 The annual rate of inflation in the food space increased in the second week of August while inflation in theLIBOR (6m) 0.39 0.39 0.00 fuel group remained steady, data released by the Government showed on Thursday. Annual inflation inLIBOR (1m) 0.16 0.16 0.00 the Food Articles group rose to 9.80% in the week ended August 13, from 9.03% in the previous week, theInterbank Call rate 8.00 8.00 0.00 Commerce & Industry Ministry said in a statement. It was at 14.56% in the corresponding period of last year. Reliance Industries has sub-let the only deep-sea drilling rig it currently has to Malaysias BSE Turnover Rs Cr(000) Sensex Petronas, leaving no rig deployed at any of its oil and gas blocks in offshore India. Reliance has sub-let its 16600 3.0 Transocean-owned ultra-deep water drillship Dhirubhai Deepwater KG-2 to Petronas at least till the year- 16500 end, industry sources said. 2.5 16400 2.0 REpower Systems SE in which Suzlon Energy Limited is the majority shareholder with approximately 95 16300 per cent holding - has concluded a contract with WindWorks Power Corp. for the delivery of a total of 25 1.5 16200 wind turbines for five projects in Ontario (Canada). Five MM92 CCV wind turbines (Cold Climate version) 16100 1.0 are destined for each of the wind farms in Settlers Landing, Snowy Ridge, Grey Highlands, Cloudy Ridge and Clean Breeze, all located in the vicinity of Oshawa (Province of Ontario). The wind farms will generate 16000 0.5 a total output of more than 50 megawatts. 15900 0.0 19-Aug 22-Aug 23-Aug 24-Aug 25-Aug Sterlite Technologies Ltd., a leading global provider of connectivity solutions for the Power and Telecom industries, on Thursday announced that it has received two new contracts from Power Grid Corporation of India (PGCIL) for manufacture and supply of power conductors. The first contract is for Sterlite power conductors, that would be used in the 765KV double circuit Champa-Raipur Pooling Station Transmission NSE Turnover Rs Cr(000) Nifty Line in the Indian State of Chhattisgarh. The second contract is for Sterlite power conductors, that would 4960 14 be used in the 400KV Kishnganj-Patna Line. 4940 12 4920 Pharma major Cipla yesterday said that it expects the revenues to grow over six times to Rs 15,000- 20,000 4900 10 88.38 #DIV/0! crore by 2020 and assured shareholders that the promoters have no plan to divest their stake in the 4880 8 company. 4860 6 4840 4 Warren Buffetts Berkshire Hathaway will invest $5 billion in Bank of America, stepping in to shore up 4820 the company in the same way he helped prop up Goldman Sachs during the financial crisis. 4800 2 4780 0 GVK Power & Infrastructure has reached a deal to buy two coal mines in Australia, taking a heavy bet 19-Aug 22-Aug 23-Aug 24-Aug 25-Aug which has the potential to put an enormous strain on its finances. The Hyderabad-based company will pay $2.2 billion for Hancock Prospecting’s thermal coal mines and for the transport infrastructure which will be needed to move the coal at least 500 km to a port.
  2. 2. Aug 26, 2011 Volume: 1 | Issue: 389| November 1, 2010SECTOR 25-Aug 24-Aug % Change CORPORATE NEWS REALTY 1,676 1,669 0.44% International Data Corporation has reportedly said that the merger entity of TechHC 5,889 5,869 0.33% Mahindra and Mahindra Satyam may emerge as a formidable competitive force in theFMCG 3,974 3,967 0.18% Asia-Pacific region, especially for Indian IT service providers. The report satted thatAUTO 8,105 8,120 -0.18% combined revenue base in excess of USD 2 bn with approximately 20% coming fromOIL&GAS 8,289 8,330 -0.49% emerging markets will give the merged entity a strong growth story," the report said.POWER 2,209 2,222 -0.59% Tata Power is planning to invest around Rs. 10bn over the next three years for laying itsPSU 7,652 7,701 -0.63% own cable network in the metropolis for distributing power, according to a report. TheCG 11,669 11,752 -0.70% report stated that the company serves 8 lakh customers using the wire network of BESTTECk 3,054 3,091 -1.20% and Reliance Infrastructure to distribute electricity in the city and theCD 6,211 6,291 -1.27% suburbs, respectively. The company have sent a proposal to MERC, adds report.BANKEX 10,508 10,658 -1.40%METAL 11,572 11,791 -1.86% Kingfisher Airlines is planning to seek permission from the Ministry of Civil Aviation toIT 4,737 4,837 -2.07% launch a daily service to Male from Mumbai, according to a report. The report stated that the company is planning to expand internationally. SREI Infrastructure Finance Ltd is planning to raise a $1 bn fund to invest in road and power projects in India, according to a report. The report stated that the company aims to raise the money from overseas investors.BSE Upper Circuit Breakers TCS is planning to set up greenfield business process outsourcing (BPO) centre inCompany Name 25-Aug 24-Aug % Change Ahmedabad that can house 2,000 people, according to a report. The report stated thatRASANDIK ENGINEERING 43.2 36.0 20.00 the centre would be located at the company’s upcoming 35-acre campus, Garima Park.ODYSSEY TECHNOLOGIES 5.7 5.2 10.00 TCS employs about 35,000 people for its BPO services and out Of this, 30,500 are inDUNCANS INDUSTRIES 9.7 8.8 10.00 India, says report.BINAYAK TEX PROCESSORS 371.9 354.2 5.00 0 Ingersoll Rand, a world leader in creating and sustaining safe, comfortable and efficientRHODIA SPECIALTY CHEMICALS 373.8 356.0 5.00 environments, announced its foray into the Cold Chain consultancy segment in India. Infosys BPO is planning for an acquisitions across the globe as it expected to reach the US$1 bn revenue target over the next few years, according to a report. Oil and Natural Gas Corp (ONGC) wants to drill eight wells in its gas discovery block inBSE Lower Circuit Breakers the prolific Krishna-Godavari Basin off the Andhra coast to appraise finds it has made inCompany Name 25-Aug 24-Aug % Change the area. The firm has made 10 discoveries in the KG Basins KG-DWN-98/2 block, which sits next to Reliance Industries showpiece producing KG-D6 gas fields, Minister of StateSHRI KRISHNA DEVCON 20.8 23.1 (10.00) for Petroleum and Natural Gas RPN Singh said yesterday.WARREN TEA 423.2 445.4 (5.00)Atlas Cycle 267.7 281.7 (5.00) State-run Coal India (CIL) will replace Anil Ambani Group firm Reliance Capital in theApollo Finvest 14.3 15.0 (5.00) National Stock Exchanges Nifty index from October 10. Earlier this month, CIL hadAsit C Mehta Fin 36.2 38.1 (5.00) replaced another Anil Ambani Group firm Reliance Infrastructure from BSEs blue chip index Sensex. The Competition Commission of India (CCI) yesterday cleared the proposed merger of media and entertainment firm UTV Software Communications with Walt Disney (South East Asia) at about Rs 2,000 crore. The CCI approved the proposed combination as "it is not likely to have any appreciable adverse effect on competition", said an order. Blacksone has increased its raises in Monnet Ispat to 7.12% from 4.69%, according to a report.COMMODITY 25-Aug 24-Aug % Change COMMODITY / CURRENCY NEWSBrent Crude Oil (USD/bbl) 111 111 0.16Gold (Rs/10gm) 26,101 26,260 (0.61) Brent Crude Oil ended 0.16 percent higer at $111 per barrel . Gold ended lower by 0.61 percent at Rs 26,101 and Silver closed up by 2 percent at Rs 60,901.Silver (Rs/kg) 60,901 59,734 1.95CURRENCY 25-Aug 24-Aug % Change The Indian Rupee closed lower against the dollar at Rs 46.08 as the Indian equityINR / USD 46.08 46.00 0.17 benchmarks ended on a negative note.USD / Euro 1.44 1.44 -Yen / USD 77.11 76.50 0.80
  3. 3. Aug 26, 2011 Volume: 1 | Issue: 389| November 1, 2010FUTURES PREMIUM/DISC Cash Futures P/D% ECONOMY / POLICY / GLOBAL NEWSCOREPROTEC 301.3 314.4 4.33 An Indian-origin former analyst, accused of providing confidential companyTULIP 144.0 146.9 1.98 information in the Raj Rajaratnam-led insider trading scam in the US, has been fined aCESC 292.5 297.9 1.83 whopping $34 million for his role in the case.GESHIP 223.0 226.7 1.64NEYVELILIG 80.0 81.3 1.63 The lions share of private equity funds targeted at emerging markets goes to fasterFEDERALBNK 343.3 348.6 1.54 growth countries like India and China, with the two Asian giants cornering 68% of theGTLINFRA 13.9 13.1 (5.76) total invested value, says a study by the Emerging Markets Private Equity Association.PNB 1000.0 961.4 (3.86) According to the EMPEA, which manages a global proprietary database of privatePOLARIS 133.0 129.1 (2.97) equity activity across emerging markets, "China and India together captured 68% of theSOBHA 220.0 213.9 (2.80) total invested, with $5.8 billion going into China and $3.8 billion into India." Calculated on this basis, private equity investments in emerging market economies totalled a littleINDIACEM 66.4 64.6 (2.71) over $14 billion in the first six months of this year.IOB 110.9 108.5 (2.12) According to a study released by EMC Corporation and Zinnov ManagementINSTITUTIONAL ACTIVITY (Rs Cr) 16-Aug 12-Aug YTD Consulting, The total cloud market in India, currently at $ 400 mn will reach a marketFII Cash Net (210) (404) 7,868 value of $ 4.5 bn by 2015, says report. The report stated that there is an increasedFII Stock Futures 514 116 (167) preference of cloud adoption over the next five years in India. The total cloud spend asFII Index Futures 799 (649) 9,038 a percentage of the total IT spend as such is expected to rise from 1.4% in 2010 to 8.2%Mutual Fund 89 (10) 5,434 in 2015, says report.VALUATIONS P/E P/B DIV YLDBSE 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 %DLF 186.6 2.67 Sujana Towers 23.8 6.74 Unisys Soft 76.7 6.23Tata Motors 714.1 1.91 Tube Invest 136.8 6.13 Eros Intl Media 201.6 6.02Sun Pharma 470.4 1.27 Standard Chartered 82.3 5.86 Som Distill 158.8 5.80Bharti Airtel 401.8 1.18 GTL Infra 12.9 5.67 Elantas Beck-$ 1800.0 5.40ONGC 282.2 1.11 FORTIS 154.2 5.37 Balmer Lawr Inv 173.9 5.39TOP 5 FRONTLINE LOSERS TOP 5 MIDCAP LOSERS TOP 5 SMALLCAP LOSERS Name Rs % Name Rs % Name Rs %Jindal Steel 469.8 -4.52 Deccan Chron 52.5 -6.5 Dunlop India 13.8 -9.80Jaiprakash Asso 59.4 -4.5 Ballarpur Inds 26.5 -6.03 Heritage Foods 168.0 -8.40HEROMOTOCO 1901.1 -3.1 BGR Energy 310.0 -5.9 Himatsingka Seide 30.7 -7.82Infosys 2189.7 -2.68 MANAP FIN 44.6 -5.61 Hindustan Dorr 33.8 -7.78HDFC 628.9 -2.65 India Cements 65.2 -5.24 Uflex 172.8 -7.45 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