19 Dec 2009 10:30
Wall Street ends with moderate gains; ADRs end mixed
US markets ended with moderate gain on Friday. The Dow rose 20.63 points, or 0.2%, to 10,328.89. The broader S&P 500 index rose 6.39 points, or 0.6%, to 1,102.47, and the Nasdaq Composite Index rose 31.64 points, or 1.5%, to 2,211.69.
For the week, the Dow was down 1.4%, the S&P 500 index fell 0.4% and the Nasdaq rose 1%.
Indian ADRs ended mixed on Friday. However, gainers outnumbered the losers. In the IT space, Wipro was up 3.26% at $ 22.82, Satyam Computers was up 1.84% at $ 4.97, Infosys was up 0.72% at $ 54.64 and Patni Computers was up 3.47% at $ 20.29.
In the telecom space, Tata Communication was up 6.38% at $ 15.35 while MTNL ended down 0.99% at $ 3. In the banking space, ICICI Bank was up 0.15% at $ 34.26 while HDFC Bank ended down 0.38% at $ 122.7.
In other sectors, Dr Reddy’s Labs was up 3.26% at $ 25.94, Tata Motors was up 0.96% at $ 15.72 while Ster was down 0.23% at $ 17.51.
Indian Markets :
The Nifty closed below the psychological 5,000 mark for the first time in the last 15 sessions. The sell-off was seen across all the sectors barring pharma and auto. Realty, oil & gas, banking and FMCG were the major losers. However, Tata Motors, TCS, HCL Tech, Wipro, Sun Pharma, Ranbaxy, Hero Honda and Cipla were the only gainers. The markets were in a consolidation mode till 2 pm and traded in a tight range of 5,010-5,060.
Technically Nifty has broken the support of 4992.Now the next crucial support is at 4940-4950 levels. Consistantly close below these levels will change the market sentiments and we can expect Nifty to come till 4916 and more bold upto 4811.The weekly resistance for the Niffty is at 5040-5065 levels.
Low volumes may cause volatility on the bourses as 2009 draws to a close. US and other major overseas markets begin the year-end holiday season next week which means that the activity of foreign institutional investors will be low key. Expectations of good Q3 December 2009 results may cap downside on the bourses.
Many corporates have paid higher advance tax in the third installment of 15 December 2009 which hints at good Q3 December 2009 results from India Inc. As per reports, advance tax revenue from major companies rose 36% to Rs 10700 crore in the third quarter of the current fiscal against Rs 7900 crore in the same period last fiscal. There were about 2,800 companies that paid higher tax in the quarter under review, while about 700 companies paid less.
The total tax payment for the three quarters of the fiscal 2010 increased by 32% to Rs 27200 crore (Rs 20,600 crore). There were 6,500 companies which paid higher tax, while 1,500 reduced the outgo.
Among top firms, energy major Reliance Industries has paid Rs 850 crore for the October-December 2009 quarter, much higher than Rs 450 crore in the corresponding period last year. The second-largest private lender, HDFC Bank, has paid Rs 400 crore compared to Rs 300 crore a year ago.
India's biggest commercial bank in terms of branch network State Bank of India has paid Rs 1,795 crore as advance tax in the third quarter of FY 2010 against Rs 1700 crore paid in the same period last year. Bank of Baroda has paid Rs 355 crore, much higher than Rs Rs 220 crore.
Tata Steel nearly trebled its tax payment to Rs 650 crore from Rs 250 crore. Aditya Birla Group company Grasim Industries, which had hived off its cement business for a merger with the group company UltraTech Cement, has doubled its advance tax payment to Rs 150 crore from Rs 75 crore.
Companies pay advance tax on their estimated earnings every year in four installments. The December 15 installment is crucial since companies pay 30% of their estimated tax outgo by that time, while on a cumulative basis, it amounts to 75% of their annual tax outgo. The remaining 25% is paid by March 15. Among auto companies, Mahindra & Mahindra paid Rs 195 crore, against Rs 4.5 crore in the same quarter last year and Tata Motors paid Rs 100 crore in the third quarter against nil advance tax payment in the same quarter last year.
The Sensex slipped 2.3% and Nifty declined 2.5% this week led by selling in banking, realty, oil & gas and telecom stocks.
The BSE Bankex was down 5.5%, as Axis Bank fell 7%. HDFC Bank and ICICI Bank slipped 6.5%, and SBI was down 5.2%.
In the realty space, Unitech plunged 7.3% and DLF was down 6.8%. The BSE Realty Index fell 5.3%.
The BSE Oil & Gas Index declined 4%, as RIL was down 6%, BPCL down 4.2% and GAIL down 3.1%.
Among the telecom stocks, Reliance Communications declined 6.2%. Idea was Down 4.5%, Tata Communication down 4.2% and Bharti down 4%.
However, the BSE Healthcare Index was up 3.8%, as Ranbaxy went up 6.5% and Sun Pharma shot up 4.5%.
IT Index rose 3.1%. HCL Tech was up 5% and Wipro up 4.5%. TCS and Infosys gained 3% each.
The Nifty Junior was down 1.5%, CNX Midcap Index down 1.9% and BSE Small Cap Index down 1%.
In the midcap space, Havells shot up 38%. HEG was up 18% and Gujarat NRE Coke up 9%.
Among the smallcap stocks, Greenply Industries was up 53%, PAE up 45% and Duncans up 29%.
The surge in advance tax in the third installment is partly due to a low base effect. It may be recalled that the global financial crisis had hit corporate earnings in Q3 December 2008.
Meanwhile, the Reserve Bank of India may tighten the monetary policy to help stem rising prices. This could be by way of a hike in the cash reserve ratio (CRR), which is currently at 5%. CRR is the portion of deposits that banks have to park with the central bank as cash. However, the central bank may refrain from raising key policy rates as the interest rate differential between India and the US and the Euro Zone, could lead to a further rise in capital inflow.
A further surge in capital inflow may send the rupee surging which in turn could hit the labour intensive textiles, gems & jewellery, and small & medium enterprises (SME) segments. Foreign funds have lapped up Indian stocks this year amid signs the economy is recovering from last year's global financial crisis. The economy could grow more than 7.75% in the fiscal year to March 2010, the finance ministry said on Friday, 18 December 2009. The GDP grew 7.9% in the July-September 2009 quarter.
Food prices rose 19.95% in the year to 5 December 2009, picking up from a 19.05 % rise a week earlier, weekly data showed on Thursday, 17 December 2009. The government is under pressure from opposition parties and allies to contain inflation, especially politically sensitive food prices which are hurting poorer sections in the country.
Regards,
Integrity Group.
Saturday, December 19, 2009
Friday, December 18, 2009
18 Dec 2009
18 Dec, 2009 08:40 hrs
Morning Market Updates :
Asia trading weak; Hang Seng, Nikkei, Straits Times down
SGX Nifty down with 30 points to 5000.
Hang Seng was down by 257 points trading at 21090
Nikkei was down by 104 points at 10059.74
STI at 2787 with 25 points down.
China’s Shanghai Composite(SSE) was down by 68 points at 3110.19
Yesterday US Markets declined as dollar gains; Gold slips 3%
The US markets declined as the dollar gained and jobless claims rose more than expected. Financials were among the hardest hit. The Dow slipped 132.86 points, or 1.3%, to 10,308.26. The broader Standard & Poor's 500 index was dwon 13.10 points, or 1.2%, to 1,096.08, and the Nasdaq Composite Index fell 26.89 points, or 1.2%, to 2,180.05.
Citigroup shares tumbled more than 6% while Bank Of America shares slipped almost 3% while Goldman and JP Morgan were down 2.5% and 4%, respectively.
Driving some of the losses in the US markets was the jobless claims data which unexpectedly rose 7,000 to a seasonally adjusted 4, 80,000.
The dollar rose to its highest level against the Euro in more than three months, but the dollar's gains were tempered by the jobless claims data. The dollar index surged to a 3-month high.
In base metals copper prices fell the most in almost seven weeks as the dollar gained for a third day and US jobless rate rose unexpectedly.
Gold prices fell 3% pressured by the dollar's rise to 3 and half month highs against the euro.
F&O Cues :
Total Futures Open Interest down by Rs 96 crore
Total Options Open Interest up by Rs 174 crore
Nifty Flat, Futures Open Interest down 1.3%
Nifty Dec futures trading at 5 pt discount versus 1 pt discount
Nifty Open Interest PCR remains at 1.22
Nifty Calls shed 6 lakh shares, Nifty Puts add 6.9 lakh shares
Nifty 5000 Jan Put adds 2 lakh shares
Nifty 5400 Dec Call adds 2 lakh shares
Nifty 5000 Jan Call adds 2 lakh shares
Nifty 5200 Dec Call sheds 6vlakh shares
Nifty 5000 Dec Call sheds 4.5 lakh shares
Stock futures add 57.1 lakh shares in Open Interest
FIIs’ Activity :
FIIs net sold Rs 416 crore in Nifty futures, which ended with 5-point discount. The Nifty Open Interest PCR (put-call ratio) remained unchanged at 1.22. Nifty 5200 Call shed 6 lakh shares in OI (open interest).
FIIs net sell USD 29.8 million on December 16
Total F&O Open Int up by Rs 77 crore at Rs 1,12,340 crore
FIIs net buy Rs 192 crore in cash on December 16 (prov)
DIIs net buy Rs 133 crore in cash on December 16 (prov)
FIIs net sell Rs 359 crore in cash on December 16
Stocks to Watch :
Fresh Long Positions were seen in Crompgreav,HDIL & Suzlon-Source
Fresh long positions were seen in Crompton Greaves, HDIL and Suzlon Energy. Crompton Greaves gained 3.4% and its futures Open Interest was up 43% - Head Research, CNBC TV18
HDIL rose 4% and its futures Open Interest was up 15%. Suzlon rose 2.5% and its futures Open Interest was up 7%.
Fresh short positions were seen in Unitech. The stock fell 2% and its futures Open Interest was up 6%.
HUL gained 2% and its rollover completed at 44%. January futures added 8 lakh shares in OI and ended with 1.1 points discount.
DLF :
-Most rental assets will be with DLF Cyber City
-Promoters related parties; not involved in integration
-All group rental assets come under DLF now
-Deal eliminates all overlaps of interest
-Deal creates a rental giant; strengthens DLF balance sheet
-Integration allows 50% of income from rentals for DLF
-Annualised rental income post integration to up by Rs 555 crore
-Additional development potential of 11.83 million sq ft
-Deal does not change position on Rs 2,800 crore receivables due
-Same cap rates used to arrive at Cyber City & Caraf values
RNRL :
-UP government initiates repossession procedure for Dadri land
-CNBC-TV18 ALERT: Dadri land allotted to ADAG company power plant
-UP Power Secretary asks land to be returned to farmers ready to return compensation
RIL-RNRL case update: RIL says
-If 40 mmscmd sold at $2.34, will get return of 2.6%
-Rate of return even lower than borrowing cost
-Selling at $2.34/mmbtu subsidy to RNRL will be $6.3 billion
-Company borrowed $6 bn at average rate of 10%
-At $2.34/mmBtu, net return is $1.8 on investment of $12
-At valuation of $4.2/mmbtu, total cost is $1.94/mmBtu
-By selling 40 mmscmd at $2.34/mmbtu, profit $0.23
-Return of equity pre tax at 3.9%; post tax at 2.5%
-Ind norm for equity return for similar project at 20%
Bank of Baroda: FIIs can purchase in open market.
Tata Motors Group global sales grew by 62% in November 2009 versus November 2008.
KRBL board approves 1:10 stock split.
Eicher Motors targets 15% mkt share in HCVs in next 3 yrs
The commercial vehicle manufacturer, Eicher Motors hopes to capture nearly 15% of the market in the next few years. The company has laid out an aggressive expansion plan and wants to have a foothold reach in every segment of the commercial vehicle market.
Volvo-Eicher Commercial Vehicles (VECV) said on Tuesday that it plans to roll out its semi low-floor buses by the second half of next year.
I-T officials visit Omaxe to verify tax documents
Officials of the Income-Tax Department on Thursday visited the offices of real estate developer Omaxe to verify some tax-related documents. The operation, which was not described as a “raid” began at 4pm on Thursday and was underway at the time of writing, it was learnt.
China pension fund to raise overseas investment cap
China's USD80 billion national pension fund plans to boost its investments abroad, Chinese media reported on Thursday, as China faces renewed pressure to let its managed currency appreciate after global markets stabilize.
China's National Social Security Fund (NSSF) will raise its overseas investment limit to 20 percent of total assets from the current 7 percent, the China Securities Journal reported, citing Chairman Dai Xianglong. He did not specify when the investment cap would be lifted.
Banks face tough new capital standards under Basel rules
Big banks will have to set aside more profits or even raise capital as protection against hard times from 2012 under tough new proposals from international regulators, released on Thursday.
The new rules from the Basel Committee on Banking Supervision will introduce higher standards for the core assets banks have to hold and stricter requirements on liquidity holdings.
Food Inflation at 20%
Food prices for the week ended December 5 are up 19.95% since last year, versus 19.05% week on week. Primary articles are costlier by 14.98% versus 13.9% week on week.
Food prices rose 19.95% in first week of December from a year earlier, its fastest in 2009, and adding pressure on the Reserve Bank of India (RBI) to tighten monetary policy.
The food price index rose 0.3% on a week-on-week basis as at December 5, as the worst dry spell in nearly four decades and floods in parts of the country hurt summer crops.
BSE, NSE to start trading at 9am from Jan 4
The Securities and Exchange Board of India (SEBI) stepped in following which the NSE and BSE jointly decided that the revision of market open timing to 9 am shall be effective from January 4, 2010. In the interim, the current market open timing of 9.55 am will continue.
18th Dec Events :
Last Date for NMDC Bids, Govt May Hire 6 Merchant Bankers For NMDC FPO
1st day of LED Expo in New Delhi.
1st day of ACMA IT Show 2009, Ahmedabad
1st day of India International Tea & Coffee Expo 2009, Bombay Exhibition Centre, Mumbai
1st day of AudioVisual Revolution, Pragati Maidan, New Delhi
National Consumer Fair at Bengaluru will start from today.
Morning Market Updates :
Asia trading weak; Hang Seng, Nikkei, Straits Times down
SGX Nifty down with 30 points to 5000.
Hang Seng was down by 257 points trading at 21090
Nikkei was down by 104 points at 10059.74
STI at 2787 with 25 points down.
China’s Shanghai Composite(SSE) was down by 68 points at 3110.19
Yesterday US Markets declined as dollar gains; Gold slips 3%
The US markets declined as the dollar gained and jobless claims rose more than expected. Financials were among the hardest hit. The Dow slipped 132.86 points, or 1.3%, to 10,308.26. The broader Standard & Poor's 500 index was dwon 13.10 points, or 1.2%, to 1,096.08, and the Nasdaq Composite Index fell 26.89 points, or 1.2%, to 2,180.05.
Citigroup shares tumbled more than 6% while Bank Of America shares slipped almost 3% while Goldman and JP Morgan were down 2.5% and 4%, respectively.
Driving some of the losses in the US markets was the jobless claims data which unexpectedly rose 7,000 to a seasonally adjusted 4, 80,000.
The dollar rose to its highest level against the Euro in more than three months, but the dollar's gains were tempered by the jobless claims data. The dollar index surged to a 3-month high.
In base metals copper prices fell the most in almost seven weeks as the dollar gained for a third day and US jobless rate rose unexpectedly.
Gold prices fell 3% pressured by the dollar's rise to 3 and half month highs against the euro.
F&O Cues :
Total Futures Open Interest down by Rs 96 crore
Total Options Open Interest up by Rs 174 crore
Nifty Flat, Futures Open Interest down 1.3%
Nifty Dec futures trading at 5 pt discount versus 1 pt discount
Nifty Open Interest PCR remains at 1.22
Nifty Calls shed 6 lakh shares, Nifty Puts add 6.9 lakh shares
Nifty 5000 Jan Put adds 2 lakh shares
Nifty 5400 Dec Call adds 2 lakh shares
Nifty 5000 Jan Call adds 2 lakh shares
Nifty 5200 Dec Call sheds 6vlakh shares
Nifty 5000 Dec Call sheds 4.5 lakh shares
Stock futures add 57.1 lakh shares in Open Interest
FIIs’ Activity :
FIIs net sold Rs 416 crore in Nifty futures, which ended with 5-point discount. The Nifty Open Interest PCR (put-call ratio) remained unchanged at 1.22. Nifty 5200 Call shed 6 lakh shares in OI (open interest).
FIIs net sell USD 29.8 million on December 16
Total F&O Open Int up by Rs 77 crore at Rs 1,12,340 crore
FIIs net buy Rs 192 crore in cash on December 16 (prov)
DIIs net buy Rs 133 crore in cash on December 16 (prov)
FIIs net sell Rs 359 crore in cash on December 16
Stocks to Watch :
Fresh Long Positions were seen in Crompgreav,HDIL & Suzlon-Source
Fresh long positions were seen in Crompton Greaves, HDIL and Suzlon Energy. Crompton Greaves gained 3.4% and its futures Open Interest was up 43% - Head Research, CNBC TV18
HDIL rose 4% and its futures Open Interest was up 15%. Suzlon rose 2.5% and its futures Open Interest was up 7%.
Fresh short positions were seen in Unitech. The stock fell 2% and its futures Open Interest was up 6%.
HUL gained 2% and its rollover completed at 44%. January futures added 8 lakh shares in OI and ended with 1.1 points discount.
DLF :
-Most rental assets will be with DLF Cyber City
-Promoters related parties; not involved in integration
-All group rental assets come under DLF now
-Deal eliminates all overlaps of interest
-Deal creates a rental giant; strengthens DLF balance sheet
-Integration allows 50% of income from rentals for DLF
-Annualised rental income post integration to up by Rs 555 crore
-Additional development potential of 11.83 million sq ft
-Deal does not change position on Rs 2,800 crore receivables due
-Same cap rates used to arrive at Cyber City & Caraf values
RNRL :
-UP government initiates repossession procedure for Dadri land
-CNBC-TV18 ALERT: Dadri land allotted to ADAG company power plant
-UP Power Secretary asks land to be returned to farmers ready to return compensation
RIL-RNRL case update: RIL says
-If 40 mmscmd sold at $2.34, will get return of 2.6%
-Rate of return even lower than borrowing cost
-Selling at $2.34/mmbtu subsidy to RNRL will be $6.3 billion
-Company borrowed $6 bn at average rate of 10%
-At $2.34/mmBtu, net return is $1.8 on investment of $12
-At valuation of $4.2/mmbtu, total cost is $1.94/mmBtu
-By selling 40 mmscmd at $2.34/mmbtu, profit $0.23
-Return of equity pre tax at 3.9%; post tax at 2.5%
-Ind norm for equity return for similar project at 20%
Bank of Baroda: FIIs can purchase in open market.
Tata Motors Group global sales grew by 62% in November 2009 versus November 2008.
KRBL board approves 1:10 stock split.
Eicher Motors targets 15% mkt share in HCVs in next 3 yrs
The commercial vehicle manufacturer, Eicher Motors hopes to capture nearly 15% of the market in the next few years. The company has laid out an aggressive expansion plan and wants to have a foothold reach in every segment of the commercial vehicle market.
Volvo-Eicher Commercial Vehicles (VECV) said on Tuesday that it plans to roll out its semi low-floor buses by the second half of next year.
I-T officials visit Omaxe to verify tax documents
Officials of the Income-Tax Department on Thursday visited the offices of real estate developer Omaxe to verify some tax-related documents. The operation, which was not described as a “raid” began at 4pm on Thursday and was underway at the time of writing, it was learnt.
China pension fund to raise overseas investment cap
China's USD80 billion national pension fund plans to boost its investments abroad, Chinese media reported on Thursday, as China faces renewed pressure to let its managed currency appreciate after global markets stabilize.
China's National Social Security Fund (NSSF) will raise its overseas investment limit to 20 percent of total assets from the current 7 percent, the China Securities Journal reported, citing Chairman Dai Xianglong. He did not specify when the investment cap would be lifted.
Banks face tough new capital standards under Basel rules
Big banks will have to set aside more profits or even raise capital as protection against hard times from 2012 under tough new proposals from international regulators, released on Thursday.
The new rules from the Basel Committee on Banking Supervision will introduce higher standards for the core assets banks have to hold and stricter requirements on liquidity holdings.
Food Inflation at 20%
Food prices for the week ended December 5 are up 19.95% since last year, versus 19.05% week on week. Primary articles are costlier by 14.98% versus 13.9% week on week.
Food prices rose 19.95% in first week of December from a year earlier, its fastest in 2009, and adding pressure on the Reserve Bank of India (RBI) to tighten monetary policy.
The food price index rose 0.3% on a week-on-week basis as at December 5, as the worst dry spell in nearly four decades and floods in parts of the country hurt summer crops.
BSE, NSE to start trading at 9am from Jan 4
The Securities and Exchange Board of India (SEBI) stepped in following which the NSE and BSE jointly decided that the revision of market open timing to 9 am shall be effective from January 4, 2010. In the interim, the current market open timing of 9.55 am will continue.
18th Dec Events :
Last Date for NMDC Bids, Govt May Hire 6 Merchant Bankers For NMDC FPO
1st day of LED Expo in New Delhi.
1st day of ACMA IT Show 2009, Ahmedabad
1st day of India International Tea & Coffee Expo 2009, Bombay Exhibition Centre, Mumbai
1st day of AudioVisual Revolution, Pragati Maidan, New Delhi
National Consumer Fair at Bengaluru will start from today.
Wednesday, December 16, 2009
Market will open by 9:00 AM from 18th Dec 2009
"The announcement is up to mark for linking the global market and investors as well if we really find this profession as our battlefield." -- Integrity Group.
The war between the stock exchanges has just turned up the heat. The National Stock Exchange (NSE) on Wednesday evening announced it would pre-pone the market opening to 9am from Friday, from 9.52 earlier. Market closing, however, would remain the same.
The move came a day after its rival, the Bombay Stock Exchange (BSE), said it would advance the opening bell by seven minutes to 9.45am.
Minutes after the NSE announcement, the BSE — not to be left behind — too said it would open the markets at 9am.
The Securities and Exchange Board of India (SEBI) in October allowed stock exchanges in India to extend their trading hours to a maximum possible window of trading between 9am and 5pm.
The SEBI move was prompted by a long-standing demand by the stock exchanges for allowing extension of trading hours to capture more trading from international investors, especially from Asian countries like Singapore where exchanges open earlier, Indian time.
However, soon after the regulator gave exchanges the go-ahead, opinion in the stock market fraternity was vertically divided with several brokers and brokerages saying lack of infrastructure could prove a hindrance to extend market hours to the full window of 9am to 5pm.
Mr.Ravi Narain, MD, NSE, said, “We had extensive consultations the whole day with a wide spectrum of market participants,”. “and the market participants’ consensus speaks that there is no choice left and NSE should review its market timings and it must do so on Friday itself and better to go straight to 9am rather than deal with the possibility of incremental changes.”
Narain may have hinted at the BSE move on Tuesday to go ahead alone and pre-pone market hours by seven minutes. “There was really no choice but to proceed accordingly.”
The BSE, after its response, said it too was left with no option but to respond to NSE’s move. “We took a measured move yesterday to open the markets 10 minutes earlier and I think it was reasonably well accepted,” said BSE Head of Marketing Jim Shapiro.
“The NSE chose to move the market opening to 9am. It’s a much more drastic move and given the competitive dynamics, unfortunately we have no choice but to match 9 am,” Shapiro said. The BSE, he added, was “quite happy” with yesterday’s move to advance opening bell by seven minutes but was compelled to undertake Thursday’s move.
Brokers : More trading, more stress ?
Brokers, though, are not too impressed. “Starting the markets early will serve no purpose and the market men and brokers are getting caught in the crossfire between the two exchanges,” said broker Dipan Mehta, a member of both the BSE and NSE. He said the move would serve no purpose but would put more stress on those involved in the stock market.
Comment : But if we are here for a decent profession then we will have to accept such changes happily. It quite possible the Indian market timing will become round the clock to serve international investors for many reasons like we do in BPO. Then why not in investment segment for them ?
Trading volumes in the stock market would go up, said Ambareesh Baliga of Karvy Stock Broking, “though it won’t be in the same proportion as the increased time".
Comment : Soon we will realize that the volumes are more by 10-12% of current avg volumes.
Baliga said the move may be aimed at increasing more day-trading and capturing some trades from the Singapore’s SGX Nifty, which opens two-and-a-half hour earlier than Indian time.
“Volumes will increase because a large part of the trade flows from other parts of the world, particularly Asian markets,” said Deven Choksey of KR Choksey Securities. “It would be good as far as fund allocations to India are concerned and we would see some more action coming into the market in the early hours of the day.”
Team Integrity
After Market Update 16 Dec 2009
16 Dec 2009 16:10
The market bounced back in today's trade and closed with marginal gains amid volatility, on the back of buying interest in technology, telecom, pharma, cement, select metal and auto stocks. Sensex closed 35 points higher at 16912.77 while broad based Nifty50 closed at 5042.05 with 9 points in green
http://www.integrity.org.in/
Bharti Airtel was the leading counter, jumped over 3%, as agencies told CNBC-TV18 that the company is going to buy 70% stake in Bangladesh operator Warid and deal size could be at $900 million.
Positive European cues were also supportive to the benchmark indices. However, selling in banking, FMCG and select oil & gas stocks capped the gains to major extent. BHEL and SAIL were also the losers.
The Sensex closed at 16,951, up 74 points and the Nifty as at 5,042, up 9 points, as per provisional data. About 667 shares advanced while 598 shares declined on the NSE.
F&O Check :
Volumes were on a lower side today and market is not giving any clear direction, reports CNBC-TV18's Anuj Singhal. It showed sings of breaking down in the morning but then has bounced back but the moment it dipped into green again it saw a bit of pressure. Overall also it’s looking quite flat from Nifty Futures adding about 7 lakh shares in open interest, trading at one point discount or quiet flat for the Nifty.
Individual stock future activity is continuing and the stock of the day clearly is Orchid and that has seen quite a bit of build up over this series but today you have seen a bit of unwinding nearly 8 lakh shares getting cut in Open Interest that stock is down close to 9%, So quite a severe fall over there.
In the morning we spoke about Hindustan Unilever and the kind of rollover action that is picking over there. Jan futures adding about 28 lakh shares in Open interest. So 35% rollover for HULthe stock is a bit in trade today down about Rs 4 but has seen very high rollovers.
Financials continue to be under pressure, so IFCI has seen a fresh built up of Rs 30 lakh shares so that stock is down close to 2%. Kotak Mahindra Bank is also down about 4.5% and has seen a fresh build up of about 5 lakh shares trading with negative cost of carry.
Among infrastructure stocks, Lanco Infratech is looking slightly weak in trade today and that has added quite a bit of OI in trade.
Idea has bounced back after couple of days of fall and that stock is in fact the biggest Nifty gainer has seen a fresh build up of 7 lakh shares.
International Markets :
European
FTSE : + 32.89
Zetra Dax +68.55
CAC +34.05
Asian
HangSeng : -202.18
Nikkei : + 93.93
US
Dow Futures : + 47
Fore more financial products, visit :
www.integrity.org.in
The market bounced back in today's trade and closed with marginal gains amid volatility, on the back of buying interest in technology, telecom, pharma, cement, select metal and auto stocks. Sensex closed 35 points higher at 16912.77 while broad based Nifty50 closed at 5042.05 with 9 points in green
http://www.integrity.org.in/
Bharti Airtel was the leading counter, jumped over 3%, as agencies told CNBC-TV18 that the company is going to buy 70% stake in Bangladesh operator Warid and deal size could be at $900 million.
Positive European cues were also supportive to the benchmark indices. However, selling in banking, FMCG and select oil & gas stocks capped the gains to major extent. BHEL and SAIL were also the losers.
The Sensex closed at 16,951, up 74 points and the Nifty as at 5,042, up 9 points, as per provisional data. About 667 shares advanced while 598 shares declined on the NSE.
F&O Check :
Volumes were on a lower side today and market is not giving any clear direction, reports CNBC-TV18's Anuj Singhal. It showed sings of breaking down in the morning but then has bounced back but the moment it dipped into green again it saw a bit of pressure. Overall also it’s looking quite flat from Nifty Futures adding about 7 lakh shares in open interest, trading at one point discount or quiet flat for the Nifty.
Individual stock future activity is continuing and the stock of the day clearly is Orchid and that has seen quite a bit of build up over this series but today you have seen a bit of unwinding nearly 8 lakh shares getting cut in Open Interest that stock is down close to 9%, So quite a severe fall over there.
In the morning we spoke about Hindustan Unilever and the kind of rollover action that is picking over there. Jan futures adding about 28 lakh shares in Open interest. So 35% rollover for HULthe stock is a bit in trade today down about Rs 4 but has seen very high rollovers.
Financials continue to be under pressure, so IFCI has seen a fresh built up of Rs 30 lakh shares so that stock is down close to 2%. Kotak Mahindra Bank is also down about 4.5% and has seen a fresh build up of about 5 lakh shares trading with negative cost of carry.
Among infrastructure stocks, Lanco Infratech is looking slightly weak in trade today and that has added quite a bit of OI in trade.
Idea has bounced back after couple of days of fall and that stock is in fact the biggest Nifty gainer has seen a fresh build up of 7 lakh shares.
International Markets :
European
FTSE : + 32.89
Zetra Dax +68.55
CAC +34.05
Asian
HangSeng : -202.18
Nikkei : + 93.93
US
Dow Futures : + 47
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www.integrity.org.in
16 Dec 2009
16 Dec 2009 9:35
US mkts end lower on inflation concern; Dow down 49 pts :
The Dow was down 49.05 points, or 0.5%, to 10,452. The S&P 500 index was down 6.18 points, or 0.6%, to 1,107.93, and the Nasdaq Composite Index was down 11.05 points, or 0.5%, to 2,201.05.
In important macro data from the US, inflation at the wholesale level surged 1.8% in November, reflecting price jumps in energy and other products. The jump in inflation comes as the fed kicked off a two-day monetary-policy meeting.
Asian markets trading firm; Shanghai Composite, Nikkei up :
Asian markets were trading mix. China's Shanghai Composite was down by 3 points at 3,271.
Hong Kong's Hang Seng was down by 195 points at 21,618.
Japan's Nikkei was up by 58 points at 10,184.05.
Singapore's Straits Times was up by 3 points at 2,802.16.
SBI-IAG hand in hand ?
-SBI-IAG non life JV receives final nod from IRDA
-SBI-IAG likely to launch operations in March 2010
-IAG stands for Insurance Australia Group
Bhushan Steel:
-May tie up with Japanese company for India Steel Project: Sources
-May announce alliance with Japanese company on Wednesday
DB Corp IPO closes
Total: 39.54 times
QIB: 68.5 times
NII: 26.1 times
Retail: 3 times
DB Corp: Sources Say
-Fido, Goldman, India Cap and P Notes like Citi, BNP, Macquarie, ABN, JPM etc have bid for full book
-Domestic funds include Reliance MF, Pru ICICIMF, Pru ICICI Life, HDFC MF, Birla MF
Mobile service providers' subscriptions :
-Bharti Airtel adds 2.8 million users in November versus 2.7 million (MoM)
-Idea added 2.55 million mobile users in November versus 1.9 million (MoM)
-Vodafone adds 2.78 million mobile users in November versus 2.98 million (MoM)
-MTNL adds 73,019 GSM mobile users in November versus 65,730 (MoM)
Bajaj Hindusthan Q4
-Net profit at Rs 69 crore versus loss of Rs 87 crore
-Net sales at Rs 415 crore versus Rs 463 crore
-Decrease in inventory at Rs 268 crore versus Rs 339 crore
-Interest cost at Rs 26 crore versus Rs 59 crore ((QIP proceeds used for debt repayment))
Stocks that are in news today:
-Orchid Chemical to sell generic injectable finished dosage from pharma business to Hospira for $400 million
-DLF board approved integration between DLF Cyber City and Caraf Builders in 60:40 ratio
-Shree Cements advance tax at Rs 31 crore versus Rs 40.5 crore
-Bharati Shipyard says LIC sells 2.14% stake in company
-Kingfisher still in NSE F&O curb
-PSU Bank employees on 1-day strike today against consolidation
-Tata Steel update: Corus announces €35 million investment in French steel mill after securing rail contract
-FIIs can buy shares of Union Bank as FII investment falls below prescribed limit
-Kalindee Rail board meet on December 22 for issuance of convertible warrants to promoters
-Uttam Galva open offer opens on December 19, closes on January 7
The Bombay Stock Exchange (BSE) on Tuesday announced it was extending trading time by seven minutes. The BSE stock market would, from December 18 (Friday) onward, open at 9.45 am instead of 9.52 am.
The closing time would, however, remain the same at 3.30 pm, the BSE said.
The Securities and Exchange Board of India (SEBI) recently allowed stock exchanges in India to extend their trading hours and allowed a maximum possible window of trading between 9am and 5pm.
SBI pays Rs 1795 Cr Oct-Dec advance tax
US mkts end lower on inflation concern; Dow down 49 pts :
The Dow was down 49.05 points, or 0.5%, to 10,452. The S&P 500 index was down 6.18 points, or 0.6%, to 1,107.93, and the Nasdaq Composite Index was down 11.05 points, or 0.5%, to 2,201.05.
In important macro data from the US, inflation at the wholesale level surged 1.8% in November, reflecting price jumps in energy and other products. The jump in inflation comes as the fed kicked off a two-day monetary-policy meeting.
Asian markets trading firm; Shanghai Composite, Nikkei up :
Asian markets were trading mix. China's Shanghai Composite was down by 3 points at 3,271.
Hong Kong's Hang Seng was down by 195 points at 21,618.
Japan's Nikkei was up by 58 points at 10,184.05.
Singapore's Straits Times was up by 3 points at 2,802.16.
SBI-IAG hand in hand ?
-SBI-IAG non life JV receives final nod from IRDA
-SBI-IAG likely to launch operations in March 2010
-IAG stands for Insurance Australia Group
Bhushan Steel:
-May tie up with Japanese company for India Steel Project: Sources
-May announce alliance with Japanese company on Wednesday
DB Corp IPO closes
Total: 39.54 times
QIB: 68.5 times
NII: 26.1 times
Retail: 3 times
DB Corp: Sources Say
-Fido, Goldman, India Cap and P Notes like Citi, BNP, Macquarie, ABN, JPM etc have bid for full book
-Domestic funds include Reliance MF, Pru ICICIMF, Pru ICICI Life, HDFC MF, Birla MF
Mobile service providers' subscriptions :
-Bharti Airtel adds 2.8 million users in November versus 2.7 million (MoM)
-Idea added 2.55 million mobile users in November versus 1.9 million (MoM)
-Vodafone adds 2.78 million mobile users in November versus 2.98 million (MoM)
-MTNL adds 73,019 GSM mobile users in November versus 65,730 (MoM)
Bajaj Hindusthan Q4
-Net profit at Rs 69 crore versus loss of Rs 87 crore
-Net sales at Rs 415 crore versus Rs 463 crore
-Decrease in inventory at Rs 268 crore versus Rs 339 crore
-Interest cost at Rs 26 crore versus Rs 59 crore ((QIP proceeds used for debt repayment))
Stocks that are in news today:
-Orchid Chemical to sell generic injectable finished dosage from pharma business to Hospira for $400 million
-DLF board approved integration between DLF Cyber City and Caraf Builders in 60:40 ratio
-Shree Cements advance tax at Rs 31 crore versus Rs 40.5 crore
-Bharati Shipyard says LIC sells 2.14% stake in company
-Kingfisher still in NSE F&O curb
-PSU Bank employees on 1-day strike today against consolidation
-Tata Steel update: Corus announces €35 million investment in French steel mill after securing rail contract
-FIIs can buy shares of Union Bank as FII investment falls below prescribed limit
-Kalindee Rail board meet on December 22 for issuance of convertible warrants to promoters
-Uttam Galva open offer opens on December 19, closes on January 7
The Bombay Stock Exchange (BSE) on Tuesday announced it was extending trading time by seven minutes. The BSE stock market would, from December 18 (Friday) onward, open at 9.45 am instead of 9.52 am.
The closing time would, however, remain the same at 3.30 pm, the BSE said.
The Securities and Exchange Board of India (SEBI) recently allowed stock exchanges in India to extend their trading hours and allowed a maximum possible window of trading between 9am and 5pm.
SBI pays Rs 1795 Cr Oct-Dec advance tax
Monday, December 14, 2009
Mon, 14th Dec,2009
Weak Asian opening.
SGX Nifty down by 14 pts,
Updates :
MF distributors` nod not compulsory to shift investments: SEBI :
Market watchdog, Securities and Exchange Board of India (SEBI) has asked asset management companies (AMCs) not to compel investors to get no-objection certificates (NoCs) from their existing distributors for shifting their investments.
This is a reiteration of the Association of Mutual Funds of India (Amfi) advice to AMCs to allow investors to change their distributor on the basis of a letter from them.
SEBI said that it appears that this mandate is not being followed by the mutual fund industry. Some AMCs are insisting on the investor procuring an NoC from the existing distributor for this switch over, despite the guideline from AMFI.
SEBI tightens norms on incomplete MF documentation :
The Securities and Exchange Board of India (SEBI) has asked asset management companies (AMCs) to stop paying commissions to intermediaries, including banks and other distributors, who did not keep proper documents of their clients.The regulator has also asked fund houses to set up a separate customer service, mechanism for queries and grievances of unit holders
SBI seeks borrowers for its $3b :
Flushed with a war chest of $3 billion (nearly Rs 14,000 crore) and going slow on overseas acquisitions due to a sluggish recovery of the global economy, the State Bank of India (SBI) is seeking out Indian companies to whom it can lend the idle money.
During the fiscal year, the bank will open 44 overseas branches, most of them in Asian countries. For instance, the subsidiary, SBI Nepal, will have 11 branches, while the Canada subsidiary will expand from 8 to 12 branches. The expansion in the US will be through the bank’s California subsidiary.
The international operations are getting divided into five decentralised centres: Saarc countries, Africa, West Asia, the UK and the US. Each centre will have autonomy in its region.
International business now contributes about 10 per cent of SBI's total revenues. The bank intends to increase it to 20-25 per cent.
Realty fund Trikona Trinity shunts out its Indian adviser :
Trikona Trinity Capital, an India-focused real estate fund, has unceremoniously shunted out its Indian adviser Trikona Advisors (TAL) in the light of breaches pertaining to the terms of the 3-year old portfolio management agreement. Trikona Trinity, which has invested over $250 million since 2006, did not elaborate on the breaches committed by TAL, which claims that managed returns of approximately 86 million pounds with an internal rate of return of 97 per cent for the AIM-listed real estate fund.
Reacting to the development, TAL, which has 16-member team sitting across Mumbai, New Delhi, London and Cayman Islands, feels there is no basis in fact to the allegations made against it.
Mahindra top brass set to brainstorm over road map :
Come December 17, close to 500 top managers in the Mahindra business empire will head to the Knowledge City campus of Mahindra Satyam in Hyderabad's Gachibowli.
Marg Karaikal Port plans to go public :
Marg Karaikal Port, a wholly-owned subsidiary of Chennai-based infrastructure company Marg, may go for initial public offering (IPO) in the next financial year to meet its sales and operational requirements.
Inflation numbers, US cues to drive market :
The market is likely to remain positive this week. Investors are expected to take cues from the monthly inflation numbers due on Monday while on the global front
Fineotex Chemical plans to enter capital market :
Mumbai-based Fineotex Chemical is planning to come out with an initial public offer to meet its proposed expansion plans and has filed draft paper with the market regulator SEBI.
Reliance Life IPO likely in Q1 of next fiscal :
Anil Ambani Group's life insurance venture Reliance Life expects to tap the capital market with its initial public offer in the first quarter of next fiscal, a top company official
Wall St boosted by consumer data, UTX outlook :
US stocks rose on Friday as reports pointing to steadying consumer demand supported optimism that the burgeoning economic recovery will be sustainable.
Consumer and small-cap stocks led shares higher after a series of stronger-than-anticipated reports lessened concerns that a double-dip recession is in store.
November U.S. retail sales rose more than forecast to post their largest advance since August, while a separate report showed consumer sentiment improved in early December.
US markets end flat; Indian ADRs weak :
The US markets closed flat. The Dow Jones Industrial Average was up 65.67 points, or 0.63%, to 10471.5. The S&P 500 was up 4.06 points, or 0.37% to 1106.41 while the Nasdaq was down 0.55 points, or 0.03%, to 2190.31.
Indian ADRs ended lower on Friday. In the banking space, ICICI Bank was down 2.66% at $ 36.63 and HDFC Bank was down 2.63% at $ 131.28. In the IT space, Patni Computers was down 2.25% at $ 19.58, Wipro ended down 1.48% at $ 19.95, Satyam Computers was down 0.78% at $ 5.08 and Infosys was down 0.25% at $ 15.44. In the telecom space, Tata Communication was down 0.97% at $ 15.29 and MTNL was down 0.64% at $ 3.15. In others sectors, Sterlite Industries was down 1% at $ 17.82, Dr Reddy’s Labs was down 0.67% at $ 23.82, and Tata Motors was down 0.52% at $ 15.44.
Report on Tata Steel :
Investors may consider holding on to their Tata Steel shares. Uncertainties at its acquired European operations have been the key challenge for this profitable integrated low-cost steel producer, whose Indian and South East operations continue to remain one of the best bets in the steel industry. The stock trades at an EV/Tonne of about Rs 35,000. This is at discount to several Indian peers such as SAIL but at a slight premium to global peers such as Arcelor Mittal. While the European operations have shown early signs of revival, the key risk to Tata Steel's prospects arise from a delayed private demand recovery, especially once idling capacity is reinstated.
Indian steel price trends usually track global trends, remaining at asmall premium due to tight demand-supply.
With clear signs of recovery, the Indian economy has witnessed very healthy demand growth for almost all steel users — automobiles, electronics, industrial machinery. With steel supply expected to fall short of demand, the last two years have seen a slew of expansion plans by global and Indian majors. Tata Steel plans to ramp up capacities to 10 million tonnes from the current 7 million, with a greater percentage being flat products, which have better margins as a result of potential value addition. Automobile sales, which have seen a strong acceleration in volumes, even with some moderation, may provide Tata Steel with tremendous opportunities to capitalise on.
Emerging opportunities such as packaging, construction solutions and high-end flat products should see Tata Steel well poised to piggy-back on the well established Corus product line and research. Tata Steel's domestic operating margins have hovered around the 40 per cent mark and sales volumes grew 10 per cent between FY06 and FY09.
Realisations, in line with international steel prices, grew between 10 and 25 per cent over the same period. Profits after tax grew at an average of 13 per cent. With capacity being ramped up by up to 50 per cent by FY11, this should reflect on the standalone top line.
TATA STEEL: EUROPEAN STORY
Corus Steel, a wholly-owned subsidiary of Tata Steel, has a capacity of around 20-21 million tonnes of steel per annum accounting for roughly 10 per cent of European capacity and 65 per cent of Tata Steel's revenues in FY09. At the time of Tata Steel's acquisition, Corus had just returned to marginal profitability, after several years of sustained losses as a result of a high cost structure and legacy costs.
The scope for value addition and higher margins in the European markets, research and expertise in packaging, construction, automobiles and engineering grade steel are among the major reasons why Tata Steel acquired Corus. Though Corus by virtue of its huge capacity and wide product line is exposed to a variety of sectors all of them have been severely affected by the recession across Europe.
Tata Steel's European operations have seen very rough seas over the last four quarters taking a double hit from lower realisations and volumes.
The first half of FY10 saw revenue collapse by 51 per cent compared with the same period last year and a cumulative EBIDTA loss of close to Rs 2,500 crore. Lower raw material costs seem to have had minimal effect on the red bottom line. Efforts to streamline Corus' high cost structure include downsizing, mothballing plants and buying mines to secure raw material assets in an effort to hedge against commodity price fluctuations, the last of which is expected to take effect in 2012.
However, until these measures take effect, prospects for Corus may remain quite vulnerable to whether the recovery pans out. European commercial automobile sales are down 30-60 per cent in 2009, with sales sliding for 18 months in a row. But weighed against this, passenger automobiles, thanks to tax rebates and other incentives, have shown some early signs of growth in the last few months in contrast to the brutal drops witnessed earlier this year. Real-estate, industrial machinery and other sectors appear to have already bottomed out and some have managed single-digit growth. However, the numbers remain quite fragile as evidenced by the unexpected drop in German industrial output by 1.8 per cent in October.
Seen in this backdrop, Corus' plans to reinstate idling capacity does carry the risk of ‘oversupply'. The operations have, however, seen an improvement in capacity utilisation from the 50 per cent to about 75 per cent in the latest quarter. The second risk to the outlook arises from the uncertainty about private demand picking up once the stimulus-induced demand tapers off.
If private demand from infrastructure, real-estate, capital expenditure, automobiles and other sectors does not pick up, carrying forward the momentum provided by stimulus measures, steel producers could find themselves in the unenviable position of dealing with higher fixed costs and a renewed correction in realisations. Global steel prices, which are currently 40-50 per cent off their peak prices of mid-2008, have had a flat 2009 due to lack of demand in the second half of 2008 being balanced out by huge production cuts.
Debt repayments :
Tata Steel, which in retrospect did pay a high price for Corus, now carries a net debt position of $9.8 billion, down from $11 billion at the end of FY09. Several efforts have been taken to repay portions of the debt by raising funds through a GDR issue and shoring up the balance sheet by raising capital.
Other measures include deferring conversion of debt instruments on more convenient terms. The company has planned to repay another $180 million by end of this fiscal year. The dilutive effect for current shareholders, of equity expansion to pay back debt, is one of the downsides of this steel bet.
In the near term, steel realisations are likely to remain depressed, given the lumpy nature of Chinese demand and still shaky growth in developed nations. The latter makes volume growth an uncertainty.
However, what makes Tata Steel an interesting bet for long-term investors is its geographic profile, product mix and operational efficiency which in the long run are likely to serve investors well, even during downturns in the steel cycle.
http://www.integrity.org.in/
SGX Nifty down by 14 pts,
Updates :
MF distributors` nod not compulsory to shift investments: SEBI :
Market watchdog, Securities and Exchange Board of India (SEBI) has asked asset management companies (AMCs) not to compel investors to get no-objection certificates (NoCs) from their existing distributors for shifting their investments.
This is a reiteration of the Association of Mutual Funds of India (Amfi) advice to AMCs to allow investors to change their distributor on the basis of a letter from them.
SEBI said that it appears that this mandate is not being followed by the mutual fund industry. Some AMCs are insisting on the investor procuring an NoC from the existing distributor for this switch over, despite the guideline from AMFI.
SEBI tightens norms on incomplete MF documentation :
The Securities and Exchange Board of India (SEBI) has asked asset management companies (AMCs) to stop paying commissions to intermediaries, including banks and other distributors, who did not keep proper documents of their clients.The regulator has also asked fund houses to set up a separate customer service, mechanism for queries and grievances of unit holders
SBI seeks borrowers for its $3b :
Flushed with a war chest of $3 billion (nearly Rs 14,000 crore) and going slow on overseas acquisitions due to a sluggish recovery of the global economy, the State Bank of India (SBI) is seeking out Indian companies to whom it can lend the idle money.
During the fiscal year, the bank will open 44 overseas branches, most of them in Asian countries. For instance, the subsidiary, SBI Nepal, will have 11 branches, while the Canada subsidiary will expand from 8 to 12 branches. The expansion in the US will be through the bank’s California subsidiary.
The international operations are getting divided into five decentralised centres: Saarc countries, Africa, West Asia, the UK and the US. Each centre will have autonomy in its region.
International business now contributes about 10 per cent of SBI's total revenues. The bank intends to increase it to 20-25 per cent.
Realty fund Trikona Trinity shunts out its Indian adviser :
Trikona Trinity Capital, an India-focused real estate fund, has unceremoniously shunted out its Indian adviser Trikona Advisors (TAL) in the light of breaches pertaining to the terms of the 3-year old portfolio management agreement. Trikona Trinity, which has invested over $250 million since 2006, did not elaborate on the breaches committed by TAL, which claims that managed returns of approximately 86 million pounds with an internal rate of return of 97 per cent for the AIM-listed real estate fund.
Reacting to the development, TAL, which has 16-member team sitting across Mumbai, New Delhi, London and Cayman Islands, feels there is no basis in fact to the allegations made against it.
Mahindra top brass set to brainstorm over road map :
Come December 17, close to 500 top managers in the Mahindra business empire will head to the Knowledge City campus of Mahindra Satyam in Hyderabad's Gachibowli.
Marg Karaikal Port plans to go public :
Marg Karaikal Port, a wholly-owned subsidiary of Chennai-based infrastructure company Marg, may go for initial public offering (IPO) in the next financial year to meet its sales and operational requirements.
Inflation numbers, US cues to drive market :
The market is likely to remain positive this week. Investors are expected to take cues from the monthly inflation numbers due on Monday while on the global front
Fineotex Chemical plans to enter capital market :
Mumbai-based Fineotex Chemical is planning to come out with an initial public offer to meet its proposed expansion plans and has filed draft paper with the market regulator SEBI.
Reliance Life IPO likely in Q1 of next fiscal :
Anil Ambani Group's life insurance venture Reliance Life expects to tap the capital market with its initial public offer in the first quarter of next fiscal, a top company official
Wall St boosted by consumer data, UTX outlook :
US stocks rose on Friday as reports pointing to steadying consumer demand supported optimism that the burgeoning economic recovery will be sustainable.
Consumer and small-cap stocks led shares higher after a series of stronger-than-anticipated reports lessened concerns that a double-dip recession is in store.
November U.S. retail sales rose more than forecast to post their largest advance since August, while a separate report showed consumer sentiment improved in early December.
US markets end flat; Indian ADRs weak :
The US markets closed flat. The Dow Jones Industrial Average was up 65.67 points, or 0.63%, to 10471.5. The S&P 500 was up 4.06 points, or 0.37% to 1106.41 while the Nasdaq was down 0.55 points, or 0.03%, to 2190.31.
Indian ADRs ended lower on Friday. In the banking space, ICICI Bank was down 2.66% at $ 36.63 and HDFC Bank was down 2.63% at $ 131.28. In the IT space, Patni Computers was down 2.25% at $ 19.58, Wipro ended down 1.48% at $ 19.95, Satyam Computers was down 0.78% at $ 5.08 and Infosys was down 0.25% at $ 15.44. In the telecom space, Tata Communication was down 0.97% at $ 15.29 and MTNL was down 0.64% at $ 3.15. In others sectors, Sterlite Industries was down 1% at $ 17.82, Dr Reddy’s Labs was down 0.67% at $ 23.82, and Tata Motors was down 0.52% at $ 15.44.
Report on Tata Steel :
Investors may consider holding on to their Tata Steel shares. Uncertainties at its acquired European operations have been the key challenge for this profitable integrated low-cost steel producer, whose Indian and South East operations continue to remain one of the best bets in the steel industry. The stock trades at an EV/Tonne of about Rs 35,000. This is at discount to several Indian peers such as SAIL but at a slight premium to global peers such as Arcelor Mittal. While the European operations have shown early signs of revival, the key risk to Tata Steel's prospects arise from a delayed private demand recovery, especially once idling capacity is reinstated.
Indian steel price trends usually track global trends, remaining at asmall premium due to tight demand-supply.
With clear signs of recovery, the Indian economy has witnessed very healthy demand growth for almost all steel users — automobiles, electronics, industrial machinery. With steel supply expected to fall short of demand, the last two years have seen a slew of expansion plans by global and Indian majors. Tata Steel plans to ramp up capacities to 10 million tonnes from the current 7 million, with a greater percentage being flat products, which have better margins as a result of potential value addition. Automobile sales, which have seen a strong acceleration in volumes, even with some moderation, may provide Tata Steel with tremendous opportunities to capitalise on.
Emerging opportunities such as packaging, construction solutions and high-end flat products should see Tata Steel well poised to piggy-back on the well established Corus product line and research. Tata Steel's domestic operating margins have hovered around the 40 per cent mark and sales volumes grew 10 per cent between FY06 and FY09.
Realisations, in line with international steel prices, grew between 10 and 25 per cent over the same period. Profits after tax grew at an average of 13 per cent. With capacity being ramped up by up to 50 per cent by FY11, this should reflect on the standalone top line.
TATA STEEL: EUROPEAN STORY
Corus Steel, a wholly-owned subsidiary of Tata Steel, has a capacity of around 20-21 million tonnes of steel per annum accounting for roughly 10 per cent of European capacity and 65 per cent of Tata Steel's revenues in FY09. At the time of Tata Steel's acquisition, Corus had just returned to marginal profitability, after several years of sustained losses as a result of a high cost structure and legacy costs.
The scope for value addition and higher margins in the European markets, research and expertise in packaging, construction, automobiles and engineering grade steel are among the major reasons why Tata Steel acquired Corus. Though Corus by virtue of its huge capacity and wide product line is exposed to a variety of sectors all of them have been severely affected by the recession across Europe.
Tata Steel's European operations have seen very rough seas over the last four quarters taking a double hit from lower realisations and volumes.
The first half of FY10 saw revenue collapse by 51 per cent compared with the same period last year and a cumulative EBIDTA loss of close to Rs 2,500 crore. Lower raw material costs seem to have had minimal effect on the red bottom line. Efforts to streamline Corus' high cost structure include downsizing, mothballing plants and buying mines to secure raw material assets in an effort to hedge against commodity price fluctuations, the last of which is expected to take effect in 2012.
However, until these measures take effect, prospects for Corus may remain quite vulnerable to whether the recovery pans out. European commercial automobile sales are down 30-60 per cent in 2009, with sales sliding for 18 months in a row. But weighed against this, passenger automobiles, thanks to tax rebates and other incentives, have shown some early signs of growth in the last few months in contrast to the brutal drops witnessed earlier this year. Real-estate, industrial machinery and other sectors appear to have already bottomed out and some have managed single-digit growth. However, the numbers remain quite fragile as evidenced by the unexpected drop in German industrial output by 1.8 per cent in October.
Seen in this backdrop, Corus' plans to reinstate idling capacity does carry the risk of ‘oversupply'. The operations have, however, seen an improvement in capacity utilisation from the 50 per cent to about 75 per cent in the latest quarter. The second risk to the outlook arises from the uncertainty about private demand picking up once the stimulus-induced demand tapers off.
If private demand from infrastructure, real-estate, capital expenditure, automobiles and other sectors does not pick up, carrying forward the momentum provided by stimulus measures, steel producers could find themselves in the unenviable position of dealing with higher fixed costs and a renewed correction in realisations. Global steel prices, which are currently 40-50 per cent off their peak prices of mid-2008, have had a flat 2009 due to lack of demand in the second half of 2008 being balanced out by huge production cuts.
Debt repayments :
Tata Steel, which in retrospect did pay a high price for Corus, now carries a net debt position of $9.8 billion, down from $11 billion at the end of FY09. Several efforts have been taken to repay portions of the debt by raising funds through a GDR issue and shoring up the balance sheet by raising capital.
Other measures include deferring conversion of debt instruments on more convenient terms. The company has planned to repay another $180 million by end of this fiscal year. The dilutive effect for current shareholders, of equity expansion to pay back debt, is one of the downsides of this steel bet.
In the near term, steel realisations are likely to remain depressed, given the lumpy nature of Chinese demand and still shaky growth in developed nations. The latter makes volume growth an uncertainty.
However, what makes Tata Steel an interesting bet for long-term investors is its geographic profile, product mix and operational efficiency which in the long run are likely to serve investors well, even during downturns in the steel cycle.
http://www.integrity.org.in/
Friday, December 11, 2009
Below expectation IIP numbers pulled market down from 18 months high..
Nifty touched a new 18 months' high 5182.55 but lost the steam immediately because of unexpected Oct.2009 IIP numbers. Market expectations were 12.5% and reality was 10.3 %
Mining sector growth: 8.2%
Electricity sector growth: 4.7%
Basic good growth: 5%
Capital goods growth: 12.2%
Intermediate goods growth: 14.3%
Consumer goods growth: 11.8%
Mining sector growth: 8.2%
Electricity sector growth: 4.7%
Basic good growth: 5%
Capital goods growth: 12.2%
Intermediate goods growth: 14.3%
Consumer goods growth: 11.8%
11 Dec,2009
11 Dec 2009 09:25
SGX Nifty up with 36 points, trading at 5165
Nifty Resistance : 5165 / 5185-90
Nifty Support : 5118 / 5092
Buy Calls :
Bhel sl 2270 Trg 2317
Selan sl 323 Trg 335/353(positional),
Sterlinbio(abv 96) sl 94 Trg 99,
Powergrid(abv 106) sl 103 Trg 110,
ICICIBank(abv 882) sl 865 Trg 904,
ICSA(in Dips at 180-183) sl 176 Trg 198,
Grasim(abv close 2470),
Siemens(abv close 556)
Balramchin,
KLG Systel
Updates :
Asian markets trading firm; Hang Seng, up by 418 points while Nikkei up by 130points.
Wall St ends higher; Dollar gains, Crude slips below $71. The Dow Jones gained 68.78 points to close at 10,405.83. The S&P 500 added 0.6% and the Nasdaq rose 0.3%.
The US markets ended with modest gains after a choppy session. The advance came in the face of modest strength in the dollar, weakness among financial issues, and mixed weekly jobless claims.
RIL considers stake sale in Haryana SEZ. RIL is believed to be in talks with IL&FS and others for sale of a minority stake in Reliance Haryana SEZ. That's according to a news agency report quoting sources. However, the report does not mention how much stake RIL could offload in the venture and at what value.
In its annual report for 2008-09, RIL had said that it was planning to bring in a partner in its Haryana SEZ project to maximise potential.
Sun Pharma Update
-Taro sends fresh letter to shareholders
-Taro targets Sun over Caraco handling
-Taro seeks shareholders' nod to favour current board
Aircel tower sale process enters final lap : The race for Aircel's tower sale has picked up pace. CNBC-TV18 learns that GTL Infra and Bharti Infratel are aggressively battling it out with other firms in the race. Sources suggest the deal may be closed in four-six weeks. The estimated value of the deal stands at USD 1.6 billion to USD 2 billion.
Aircel has nearly 14,000 towers at present and is expected to add another 2,000 towers in the near term, sources say.
The Reserve Bank of India (RBI) has made it easy for telecom companies bidding for third generation (3G) mobile spectrum to borrow money from abroad, while tightening the norms for others.
Ahead of the 3G spectrum auction, scheduled for January 14, the central bank in a notification on Wednesday that telcos can use the funds raised through external commercial borrowings (ECBs) for buying airwaves to launch 3G telephony that offers faster data downloads.
Godrej Properties subscribed 1.28 times on close.
Our Nifty 2011 target is 5840 !!
visit us on http://www.integrity.org.in/
SGX Nifty up with 36 points, trading at 5165
Nifty Resistance : 5165 / 5185-90
Nifty Support : 5118 / 5092
Buy Calls :
Bhel sl 2270 Trg 2317
Selan sl 323 Trg 335/353(positional),
Sterlinbio(abv 96) sl 94 Trg 99,
Powergrid(abv 106) sl 103 Trg 110,
ICICIBank(abv 882) sl 865 Trg 904,
ICSA(in Dips at 180-183) sl 176 Trg 198,
Grasim(abv close 2470),
Siemens(abv close 556)
Balramchin,
KLG Systel
Updates :
Asian markets trading firm; Hang Seng, up by 418 points while Nikkei up by 130points.
Wall St ends higher; Dollar gains, Crude slips below $71. The Dow Jones gained 68.78 points to close at 10,405.83. The S&P 500 added 0.6% and the Nasdaq rose 0.3%.
The US markets ended with modest gains after a choppy session. The advance came in the face of modest strength in the dollar, weakness among financial issues, and mixed weekly jobless claims.
RIL considers stake sale in Haryana SEZ. RIL is believed to be in talks with IL&FS and others for sale of a minority stake in Reliance Haryana SEZ. That's according to a news agency report quoting sources. However, the report does not mention how much stake RIL could offload in the venture and at what value.
In its annual report for 2008-09, RIL had said that it was planning to bring in a partner in its Haryana SEZ project to maximise potential.
Sun Pharma Update
-Taro sends fresh letter to shareholders
-Taro targets Sun over Caraco handling
-Taro seeks shareholders' nod to favour current board
Aircel tower sale process enters final lap : The race for Aircel's tower sale has picked up pace. CNBC-TV18 learns that GTL Infra and Bharti Infratel are aggressively battling it out with other firms in the race. Sources suggest the deal may be closed in four-six weeks. The estimated value of the deal stands at USD 1.6 billion to USD 2 billion.
Aircel has nearly 14,000 towers at present and is expected to add another 2,000 towers in the near term, sources say.
The Reserve Bank of India (RBI) has made it easy for telecom companies bidding for third generation (3G) mobile spectrum to borrow money from abroad, while tightening the norms for others.
Ahead of the 3G spectrum auction, scheduled for January 14, the central bank in a notification on Wednesday that telcos can use the funds raised through external commercial borrowings (ECBs) for buying airwaves to launch 3G telephony that offers faster data downloads.
Godrej Properties subscribed 1.28 times on close.
Our Nifty 2011 target is 5840 !!
visit us on http://www.integrity.org.in/
Thursday, December 10, 2009
Market updates 10 Dec 2009
10 Dec,2009 09:25
Updates :
The global markets indicate, Indian equities may most likely open weak on account of mixed global cues, on Wednesday, December 10. SGX Nifty was trading 33 points lower than Tuesday`s closing of 5,126.5.
Nikkei was trading nearly 1% in negative while Hang Seng was trading in negative by 108 points.Asian markets open with some gain, reversing a drop, as construction companies gained after Credit Suisse Group AG boosted its investment rating on Obayashi Corp. and higher prices for oil and gold boosted commodity companies. Japanese benchmark index Nikkei 225 advanced 15.84 points, or 0.16%, to trade at 10,020.56. China`s Shanghai Composite increased 17.21 points, or 0.53% to trade at 3,256.78.
US Stocks turned into green, late Wednesday, after trading erratically, and the Dow Jones industrials closed up 51 points. The Dow rose 51.08, or 0.50%, to 10,337.05. The broader S&P 500 index rose 4.01, or 0.37%, to 1,095.95. The Nasdaq composite index rose 10.74, or 0.49%, to 2,183.73. Indian ADRs end higher.
European stock markets slid again on, Wednesday amid rising concern about global debt woes and the health of the global economy. UK`s benchmark index FTSE 100 fell 19.24 points, or 0.37%, to end at 5,203.89. French benchmark index CAC 40 declined 27.91 points or0.74% to settle at 3,757.39. Germany`s benchmark index DAX dropped 40.74 points or 0.72% to close at 5,647.84.
Oil prices hit two-month lows on Wednesday, December 9, as government data showed that energy demand continues to slump. Benchmark crude for January delivery gave up USD 1.95 to settle at USD 70.67 a barrel on the New York Mercantile Exchange. Prices dropped as low as USD 70.13 a barrel earlier in the day. In other Nymex trading in January contracts, heating oil lost 8.16 cents to settle at USD 1.9093 a gallon while gasoline lost 6.73 cents to settle at USD 1.8573 a gallon.
Newspaper publisher DB Corp on Wednesday fixed a price band of Rs 185-212 per share for its initial public offering of about 1.82 crore shares.
Barclays barred from dealing in P- Notes : The Securities and Exchange Board of India has put an indefinite ban with immediate effect on the UK-based Barclays Bank PLC from dealing in Offshore Derivative Instruments for misrepresenting transaction details. The market regulator has found the bank guilty of furnishing data of ODIs issued to UBS AG with Reliance Communications as the underlying, while in fact, these ODIs were issued to another entity called HytheSecurities and onward issued to one Pluri Emerging Companies PCC Cell E Emerging Markets Growth Fund.
The Reserve Bank of India (RBI) is working on a road map to ensure all villages with a population of more than 2,000 will have access to financial services through a banking outlet, not necessarily a bank branch, by March 2011.
All commercial banks – public sector, private sector and foreign banks – are going to be asked to come up with their specific board-approved plans for financial inclusion by March 2010, RBI governor D Subbarao said at the Bankers’ Club in Kolkata on Wednesday.
Hyderabad-based Mahindra Satyam has settled its legal disputes with former client Upaid Systems by agreeing to pay $70 million.UK-based Upaid, which provides mobile and online payment transaction services, had sued the Indian IT services company, after a failed patent application. Upaid had charged Satyam of fraud and forgery in a project which the latter was handling for the company.
Updates :
The global markets indicate, Indian equities may most likely open weak on account of mixed global cues, on Wednesday, December 10. SGX Nifty was trading 33 points lower than Tuesday`s closing of 5,126.5.
Nikkei was trading nearly 1% in negative while Hang Seng was trading in negative by 108 points.Asian markets open with some gain, reversing a drop, as construction companies gained after Credit Suisse Group AG boosted its investment rating on Obayashi Corp. and higher prices for oil and gold boosted commodity companies. Japanese benchmark index Nikkei 225 advanced 15.84 points, or 0.16%, to trade at 10,020.56. China`s Shanghai Composite increased 17.21 points, or 0.53% to trade at 3,256.78.
US Stocks turned into green, late Wednesday, after trading erratically, and the Dow Jones industrials closed up 51 points. The Dow rose 51.08, or 0.50%, to 10,337.05. The broader S&P 500 index rose 4.01, or 0.37%, to 1,095.95. The Nasdaq composite index rose 10.74, or 0.49%, to 2,183.73. Indian ADRs end higher.
European stock markets slid again on, Wednesday amid rising concern about global debt woes and the health of the global economy. UK`s benchmark index FTSE 100 fell 19.24 points, or 0.37%, to end at 5,203.89. French benchmark index CAC 40 declined 27.91 points or0.74% to settle at 3,757.39. Germany`s benchmark index DAX dropped 40.74 points or 0.72% to close at 5,647.84.
Oil prices hit two-month lows on Wednesday, December 9, as government data showed that energy demand continues to slump. Benchmark crude for January delivery gave up USD 1.95 to settle at USD 70.67 a barrel on the New York Mercantile Exchange. Prices dropped as low as USD 70.13 a barrel earlier in the day. In other Nymex trading in January contracts, heating oil lost 8.16 cents to settle at USD 1.9093 a gallon while gasoline lost 6.73 cents to settle at USD 1.8573 a gallon.
Newspaper publisher DB Corp on Wednesday fixed a price band of Rs 185-212 per share for its initial public offering of about 1.82 crore shares.
Barclays barred from dealing in P- Notes : The Securities and Exchange Board of India has put an indefinite ban with immediate effect on the UK-based Barclays Bank PLC from dealing in Offshore Derivative Instruments for misrepresenting transaction details. The market regulator has found the bank guilty of furnishing data of ODIs issued to UBS AG with Reliance Communications as the underlying, while in fact, these ODIs were issued to another entity called HytheSecurities and onward issued to one Pluri Emerging Companies PCC Cell E Emerging Markets Growth Fund.
The Reserve Bank of India (RBI) is working on a road map to ensure all villages with a population of more than 2,000 will have access to financial services through a banking outlet, not necessarily a bank branch, by March 2011.
All commercial banks – public sector, private sector and foreign banks – are going to be asked to come up with their specific board-approved plans for financial inclusion by March 2010, RBI governor D Subbarao said at the Bankers’ Club in Kolkata on Wednesday.
Hyderabad-based Mahindra Satyam has settled its legal disputes with former client Upaid Systems by agreeing to pay $70 million.UK-based Upaid, which provides mobile and online payment transaction services, had sued the Indian IT services company, after a failed patent application. Upaid had charged Satyam of fraud and forgery in a project which the latter was handling for the company.
Wednesday, December 9, 2009
Updates for 9 Dec,2009
9 Dec,2009 09:25 hrs
Asian Updates :
SGX Nifty was down to 5107
Hang Seng was down by 0.58 %
Nikkei Down by 1.50% down
SSE was down by 1.62 %
STI was down by 0.05%
Japan's economy grew at a far slower pace in the third quarter than first thought as capital spending fell, but a double-dip recession is seen as unlikely as exports rebound and corporate spending shows signs of bottoming out.
China Shipbuilding Industry said on Wednesday it priced its A-share initial public offering at 7.38 yuan a share, as expected at the top of an indicated range, raising 14.7 billion yuan ($2.2 billion).
China's stimulus spending is on track to create at least 24 million jobs, the government said on Tuesday, offering its rosiest employment outlook since the financial crisis struck last year.
Nifty range : Nifty Support 5120/5080/
Resistance : 5180-5190
MARKET will open gap down As for global markets closed down, Asia opened in negative note , while European and us markets expected to open positive ,which may throw surprises . FII data released with some positive surprises, In view of major domestic or international triggers, Markets will be volatile with bothway moves . sudden and sharp ‘upmove’ in the 2nd half of the trading session expected . Markets are very clearly moving into trading zone, with higher levels around 5180 of NIFTY attracting ‘Profit-sales’. This could ‘arrest’ an‘ upmove’. With no major immediate ‘triggers’ in domestic markets, an Institutional activity (FIIs action) and Global cues will decide the trend in markets today. ‘Weak U.S. dollars was one of the main driver for ‘rally’ in domestic markets in the recent past. As rise in ‘dollar index’ may trigger ‘unwinding’ of dollar-carry trades NIFTY may find a ‘stiff-hurdle’ in the range 5180 and later around 5220. On the whole, markets are likely to stage a smart move in the later half of the day.
Derivative Market Updates :
Jindal Saw, SBI December 2009 futures at premium
Nifty December 2009 futures were at 5,159.30, at a premium of 11.35 points as compared to the spot closing of 5,147.95. Turnover in NSE's futures & options (F&O) surged to Rs 69428.98 crore from Rs 58040.99 crore on Monday, 7 December 2009.
Jindal Saw December 2009 futures were at premium at 991.80 compared to the spot closing of 987.10.
State Bank of India (SBI) December 2009 futures at premium at 2,313.10 compared to the spot closing of 2,307.
IFCI December 2009 futures were near spot price at 57.30 compared to the spot closing of 57.15.
In the cash market, the S&P CNX Nifty rose 81.25 points or 1.60% at 5,147.95.
Top News:
Volkswagen may take upto 20% stake in Suzuki Motors.
IGL to spend Rs.1600 cr for expamsion in Delhi.
Steel sector ready to meet carbon target.
FM seeks Rs.25725 cr extra spending.
Ficci seeks tax benefits to boost realty sector.
MF inflows dip by 68% to Rs.45124 cr in Nov.
Buy in Dips :
Parsvnath
Jindalswhl
DLF
Rajeshexpo
DSKulkarni
ITC
Punjlloyd
Jaicorp
Unitech abv 92
http://www.integrity.org.in/ info@integrity.org.in
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