23 June 2010 Morning Market Updates

23 June 2010 Morning Market Updates  08:50

Market will open in continuation of yesterday's slide.Asian markets are trading weak as US markets closed negative.We can expect a downside upto 5285-5290 levels to get a support.Another uncertainty is the most awaited meeting of Empowered Group of Ministers (EGoM) which will be held on this Friday.Therefore we expect more volatility in PSU Oil stocks.
Stocks in News :
China Ministry Of Finance ((Steel stocks to benefit))

-Eliminating VAT rebate of certain export products
-Eliminating 9% export rebate primarily flat products & long products w.e.f July 15
GST -Petro, Gas, Alcohol, Octroi likely out of GST net: Sources
-Electricity duty likely out of GST net: sources
Bank of Rajathan CEO
-We are awaiting legal opinion, to see if legal process can reach a conclusion
-Interested in complying with majority shareholders' decision
MTNL

-MTNL pays up Rs 4,534 crore for BWA spectrum
-Entire amount raised from 3 banks ((ICICI Bank, Central Bank & Yes Bank))
Ex-Dates today
-Kansai Nerolac Paints : Ex-Bonus 1:1
-Genesys International : Ex-Split 2:1
-UCO Bank : Ex-Dividend @ Rs 1.5/share
-United Bank of India : Ex-Dividend @ Rs 2/share
Insurance update
-May industry premium collections up 61% at Rs 13,963 crore (YoY)
-LIC May new premium up 88% at Rs 10,081 crore (YoY)
-Private companies' May new premium up 17% at Rs 3,882 crore (YoY)
-SBI Life May new premium down 19% at Rs 627 crore (YoY)
-ICICI Pru May new premium up 58% at Rs 761 crore (YoY)
-PMO gives a push for FDI in arillines.
F&O cues:

Futures Open Int up Rs 2384 crore, Options Open Int up Rs 1673 crore
Nifty futures add 47 lakh shares in total Open Int
Nifty July futures at 11-point premium

Nifty Open Int PCR at 1.80 versus 1.76
Nifty Puts add 26 lakh shares, Nifty Calls add 3 lakh shares in Open Int
Nifty Jul 5200 Put adds 11 lakh shares in Open Int
Nifty Jul 5300 Put adds 8.9 lakh shares in Open Int
Nifty June 5200 Put sheds 6.5 lakh shares in Open Int
Nifty June 5200 Call sheds 10.8 lakh shares in Open Int
Stock futures add 1.1 cr shares in Open Int
Rollover stats
Marketwide rollover at 46%, in line with May expiry
Nifty rollover at 40% versus 45% in May expiry
Nifty long roll cost up to 8 points from 5 points on Monday
FIIs in F&O on June 22
Net sell Rs 215 crore in Nifty Futures
Net buy Rs 1617 crore in Nifty Options
Net sell Rs 746 crore in Stock Futures
EGoM :
The stocks of PSU oil marketing companies IOC, BPCL and HPCL were up by three to four per cent on Tuesday on the hope that the government may finally bite the bullet and decontrol fuel prices.

However, the government is facing stiff resistance from both the allies and opposition parties on any hike in the prices of petroleum products.
What has made the decision to decontrol fuel price more difficult for the government is that the inflation in May crossed double digits and any fuel price increase at this juncture will make the lives of people more difficult. But the petroleum ministry and the planning commission are reportedly pushing for the decontrol of fuel prices.
The first meeting of the EGoM which took place two weeks back had failed to reach any conclusion as a majority of members were absent. Since then the petroleum ministry has been trying to hold the second meeting of the EGoM to reach to a decision.
In order to lower the impact of the fuel price hike, Mr Deora had written to the chief ministers asking them to lower the VAT imposed on the petroleum products.
Petrol price will go up Rs 3.73 a litre if the domestic prices are aligned with international rates. This is because currently domestic retail prices are benchmarked at close to $60 per barrel crude oil price while the global rates currently are over $ 77 per barrel.
The Kirit Parikh committee on the fuel pricing had in its report recommended freeing of petrol and diesel prices and a hike of Rs 100 in LPG and Rs 6 per litre in kerosene.