Daily newsletter - Sep 19, 2011


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Daily newsletter - Sep 19, 2011

  1. 1. Sept 19, 2011Volume: 1 | Issue: 389| November 1, 2010INDIAN MARKET 16-Sep 15-Sep % Change COMMENTARYBSE Sensex 16,934 16,877 0.34 INDIANSE Nifty 5,084 5,076 0.17 Markets notched marginal gains and closed off day’s high as sentiment turned jittery after the RBI reiteratedBSE Midcap 6,390 6,367 0.36 that anti-inflationary stance would persist, even at the cost affecting growth after hiking rates by 25 bps, inBSE Smallcap 7,213 7,214 (0.01) line with expectation. The Sensex ended higher by 57 points at 16,934, while the Nifty advanced 9 points, atNifty Junior 10,168 10,147 0.21 5,084. Earlier, the markets opened on a positive note after central banks around the world pledged to pumpCNX Midcap 7,346 7,340 0.08 in liquidity into the system. The Nifty touched a high of 5,143 around noon and gave up all the gains, touching a low of 5,068 after the rate hike announcement and the continued hawkish stance of the central bank. The markets recouped most of the losses, and ended the day slightly higher on concerns of more rate hikes.GLOBAL MARKETS 16-Sep 15-Sep % Change The market breadth was negative as 1,460 stocks declined, while 1,337 stocks advanced on the BSE.Dow Jones Ind (USA) 11,509 11,433 0.66Nasdaq Composite(USA) 2,622 2,607 0.58 GLOBAL MARKETSS&P 500 (USA) 1,216 1,209 0.57 US stocks closed higher on Friday, putting the benchmark S&P 500 on track for its best weekly performanceFTSE 100 (UK) 5,368 5,338 0.58 since early July as European policymakers gathered to discuss the regions debt crisis. On Friday, invitingDAX (Germany) 5,574 5,508 1.18 Geithner to a euro meeting for the first time, the European finance chiefs said the 18-month debt crisis leavesNikkei 225 (Tokyo) 8,864 8,669 2.26 no room for tax cuts or extra spending to spur an economy on the brink of stagnation. Also, benchmarkHang Seng (Hong Kong) 19,455 19,182 1.43 gauge of U.S. corporate credit risk fell by the most this week in almost two months after central banks actedShanghai Comp (China) 2,482 2,479 0.14 to provide dollar funding and as finance ministers gathered in Wroclaw, Poland, spurring speculation that global banking strains would ease. Finally, the Dow Jones industrial average gained 0.66%, to 11,509. TheKOSPI (South Korea) 1,840 1,775 3.68 Standard & Poors 500 Index rose 0.57%, to 1,216. The Nasdaq Composite Index added 0.58%, to 2,622.STI (Singapore) 2,789 2,765 0.86MSCI Emerging Market 373 369 1.08 Asian markets have opened up in red after European policymakers failed to introduce a plan to stem theMSCI Frontier Market 498 498 0.00 region’s debt crisis. Hang Seng is trading down by 1.67% and Straits Times is down by 0.75%. SGX Nifty is trading at 5038, down 49 points indicating a weak start.BOND MARKETS 16-Sep 15-Sep Change10yr G-Sec Yield 8.39 8.32 0.07 CORPORATE/ ECONOMY NEWS1yr G-Sec Yield 8.36 8.34 0.02 The Reserve Bank of India (RBI) raised the key policy rates - the repo rate and the reverse repo rate - by aLIBOR (6m) 0.31 0.50 (0.19) quarter percentage point, as it persists with its efforts to tame the inflation beast despite signs ofLIBOR (1m) 0.21 0.23 (0.02) moderation in economic growth. So, the repo rate now stands at 8.25% and the reverse repo rate nowInterbank Call rate 8.1 8.1 0.06 stands at 7.25%. There has been no change in the Cash Reserve Ratio (CRR), which stands at 6%. The bank rate has been retained at 6%. The Marginal Standing Facility (MSF) rate, determined with a spread of 100 bps above the repo rate, stands recalibrated at 9.25% with immediate effect. BSE Turnover Rs Cr(000) Sensex An earthquake measuring 6.8 on the richter scale hit North India on Sunday and the epicentre was 17000 3.0 64 km from Gangtok in Sikkim. It was 10 km (6.2 miles) deep. Mild tremors were felt in Delhi and other 16900 parts of North India. Tremors were felt in Patna, Uttar Pradesh and West Bengal also. 2.5 16800 16700 2.0 Countrys largest power producer NTPC has earmarked an investment of Rs 41,000 crore for setting up four thermal projects in the coal-rich states of Madhya Pradesh and Chhattisgarh in the next five years. 16600 1.5 NTPC has signed preliminary agreements with the governments of Madhya Pradesh and Chhattisgarh for 16500 1.0 the execution of four coal-based power projects with a combined capacity of over 8,300 MW. With the 16400 commissioning of two new supercritical 660-Mw units at the Sipat power plant, state-run power producer 16300 0.5 NTPC plans to increase its generation capacity to 36,000 Mw by March next year. 16200 0.0 12-Sep 13-Sep 14-Sep 15-Sep 16-Sep An Environment Ministry panel has recommended conditional nod to Sajjan Jindal-led JSW Steels Rs 25,000-crore investment proposal for expanding the capacity of steel plant located in Bellary, Karnataka. Earlier, the Expert Appraisal Committee (EAC) of the Ministry of Environment and Forest (MoEF) in December last year had deferred the decision on green nod to the project seeking certain details. NSE Turnover Rs Cr(000) Nifty 5100 16 Imports of sensitive items, including pulses and edible oil, went up by 34.5% to Rs 21,537 crore in April- 14 June this year, from Rs 16,016 crore in the year-ago period. The countrys pulses imports soared by 27.2% 5050 12 to Rs 2,016.26 crore during the period under review from Rs 1,585.57 crore in April-June 2010. 88.38 #DIV/0!10 5000 8 Aviva Life Insurance is looking for a bank partner for expanding its insurance network and the deal is 4950 6 likely to be finalised by December-end. 4 4900 2 4850 0 12-Sep 13-Sep 14-Sep 15-Sep 16-Sep
  2. 2. Sept 19, 2011 Volume: 1 | Issue: 389| November 1, 2010SECTOR 16-Sep 15-Sep % Change CORPORATE NEWSPSU 7,762 7,635 1.66% Fortis healthcare promoter has pledged 50.36% of Promoter Holding.POWER 2,217 2,183 1.55%REALTY 1,802 1,779 1.26% Taurus Flexibles have announced their strategic association with Spain based Cikautxo s.AUTO 8,833 8,734 1.14% Coop and Mondragon S. Coop to augment the manufacturing of rubber and plastic hosesCD 6,612 6,570 0.65% for the automotive segment for international and domestic markets. This tie-up is being 0.60% achieved by the acquisition of 50% stake in Taurus’ wholly owned EOU subsidiary in PuneHC 5,986 5,951 created from the transfer of assets from the parent group. The joint venture company isBANKEX 11,128 11,062 0.59% called Cikautxo Taurus Flexibles Private Ltd. and has an estimated networth of Rs. 34METAL 12,248 12,195 0.43% crores.CG 12,050 12,006 0.36%OIL&GAS 8,749 8,730 0.22% Fair trade regulator CCI has given its nod to the proposed Rs 1,575-crore acquisition ofTECk 3,195 3,217 -0.70% nutrition business of Wockhardt Group by dairy major Danone.IT 5,102 5,146 -0.86%FMCG 3,934 3,982 -1.22% GVK Power & Infrastructure will pay $1.26 billion for a majority stake in three Australian coal mines and a port and rail project owned by Hancock Group to secure long-term coal supplies for the Indian groups power projects. The infrastructure group will acquire a 79% stake in the Alpha and Alpha West coal mines in the Galilee Basin, and will buy Kevins Corner coal mine and the rail and port project connecting the coal mines outright. State-owned NMDC has ramped up iron ore production from Karnataka up to 30,000BSE Upper Circuit Breakers tonnes per day to meet the shortage faced by iron and steel making units in SouthernCompany Name 16-Sep 15-Sep % Change India.EVERONN 333 303 10.00In House Prod 14.6 13.3 10.00 Having achieved a strong presence in urban markets, Japanese two-wheeler majorShree Global Trd 358.0 325.5 10.00 Yamaha now plans to tap rural markets in the country by launching more models at affordable prices.MAAN ALUMINIUM 55.0 50.0 10.00 0COROMANDEL ENGINEERING 263.6 251.0 5.00 Bharat PetroResources (BPRL), a wholly-owned subsidiary of state-run oil marketer Bharat Petroleum Corporation (BPCL), said it expected to drill 16 wells by this fiscal-end and was hopeful of making further discoveries in its blocks in the country, as well as overseas.The company today has 27 blocks, out of which nine which acquired by the company under different rounds of the New Exploration Licencing Policy (NELP) are located within the country and 18 are abroad, spanning six countries.BSE Lower Circuit BreakersCompany Name 16-Sep 15-Sep % Change Loss-making state-run telco Bharat Sanchar Nigam (BSNL) is likely to scrap its 15 million line GSM tender due to the poor response from private vendors to the estimated Rs 5,000-Adarsh Plant 10.3 10.8 (5.00) 6,000 crore equipment supply contract.Auroma Coke 11.4 12.0 (5.00)Polytex India 158.9 167.3 (5.00) Countrys largest lender State Bank of India profit in the current fiscal is likely to exceedRegal Entert 7.6 8.0 (5.00) Rs 10,000 crore on the back of increased business and sustained effort to contain badS.Kumars Unitexx 11.4 12.0 (5.00) assets. The Punjab and Haryana High Court has restrained DLF from selling or creating third- party rights in one of its towers located in DLF’s Horizon Centre, earlier known as City Centre, in Gurgaon. Pharmaceutical firm Ipca Laboratories said its board has approved amalgamation of Tonira Pharma with the company from April 1, 2011. The steel ministry will soon write to the finance ministry demanding to hike export duty on iron ore to 30% from the current 20%, a move to ensure that there is no shortage of the raw material for the domestic steel makers in the long-run.COMMODITY 16-Sep 15-Sep % Change COMMODITY / CURRENCY NEWSBrent Crude Oil (USD/bbl) 111 115 (3.21)Gold (Rs/10gm) 27,748 27,493 0.93 Brent Crude Oil ended lower at $111 per barrel. Gold ended higher by 1 percent at Rs 27,748 and Silver closed up by 1.77 percent at Rs 64,373.Silver (Rs/kg) 64,373 63,256 1.77CURRENCY 16-Sep 15-Sep % Change The Indian Rupee closed higher against the dollar at Rs 47.26 as the Indian equityINR / USD 47.26 47.55 (0.61) benchmarks ended on a positive note.USD / Euro 1.37 1.38 (0.72)Yen / USD 76.72 76.59 0.17
  3. 3. Sept 19, 2011 Volume: 1 | Issue: 389| November 1, 2010FUTURES PREMIUM/DISC Cash Futures P/D% ECONOMY / POLICY / GLOBAL NEWSDHANBANK 79.5 80.5 1.26 India’s foreign direct investment declined 38% year-on-year in July to $1.09SCI 86.1 87.1 1.22 bn, according to a report. The report stated that in June, the inflows saw an annualisedMUNDRAPORT 148.3 150.0 1.15 increase of 310% to a 11-year monthly record of $5.65 bn. In May too, inflows touchedSTRTECH 39.8 40.2 1.13 $4.66 bn showing an impressive 111% over the same month last year, says report. ThereINDIAINFO 76.2 77.0 1.05 are reports that for the first six months of the 2011 calendar as well, FDI showed anWELCORP 121.1 122.3 0.99 increase of 57% to $16.83 billion.NCC 71.0 69.6 (1.97)OPTOCIRCUI 234.5 230.0 (1.92) The total approximate earnings of Indian Railways on originating basis during theSKUMARSYNF 51.3 50.3 (1.85) period from 1st to 10th September 2011 were Rs. 2510.31 crore compared to Rs.GMDCLTD 174.0 171.0 (1.72) 2297.72 crore during the same period last year, registering an increase of 9.25%.ABAN 385.9 381.1 (1.23) European finance ministers ruled out efforts to spur the faltering economy and showedSIEMENS 864.1 854.5 (1.11) no signs of taking up a proposal by U.S. Treasury Secretary Timothy Geithner to increase the firepower of the debt crisis rescue fund.INSTITUTIONAL ACTIVITY (Rs Cr) 8-Sep 7-Sep YTDFII Cash Net 29.3 374.2 6,520 U.S. House Republican leaders objected to President Barack Obama’s plan to cut payrollFII Stock Futures 603.75 458 3,934 taxes to stimulate job growth, saying it would lead to too large a boost in taxes laterFII Index Futures -23.08 281.8 10,532 when the temporary break ended.Mutual Fund -62.2 39.1 5,552 Six BP Plc (BP/) units will pay $20.5 million to resolve claims they knowingly underpaidVALUATIONS P/E P/B DIV YLD royalties on natural gas drawn from leased federal and Indian lands.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 %Tata Motors 161.7 7.02 Financial Tech 861.2 10.35 Man Infra 135.5 16.16ONGC 274.7 5.61 Shree Global Trd 358.0 9.99 SRS Real Infra 43.9 13.31NTPC 172.0 4.75 Nava Bharat Vent 201.7 9.20 Thomas Cook 53.6 12.96Sterlite Inds 134.6 3.66 Rajesh Exports 123.6 8.42 PRADIPOVERS 66.5 12.72Tata Power 984.5 2.69 Indiabulls Fin 161.8 7.01 EVERONN 333.1 9.99TOP 5 FRONTLINE LOSERS TOP 5 MIDCAP LOSERS TOP 5 SMALLCAP LOSERS Name Rs % Name Rs % Name Rs %Hindustan Unilever 340.1 -2.65 Essar Ports 67.4 -6.20 Shree Nath Comm 12.8 -9.12Wipro 339.8 -2.37 HCL Infosystems 60.8 -5.96 Confidence Petro 9.8 -7.41BHEL 1686.5 -1.39 India Cements 69.3 -5.59 Indiabulls Sec 8.7 -5.74Tata Steel 459.8 -1.30 Hexaware Tech 72.3 -5.56 Orbit Corp 34.5 -5.49Jindal Steel 544.1 -1.10 Jai Corp 91.2 -5.35 OCL India 97.0 -5.46 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