Logistics Sector
India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Monday, March 15, 2010
D-St unenthused on advance tax numbers
Today's major news
Reliance Industries recovers on high advance tax payment; the stock rises by 0.64%
Bharat Heavy Electrical wins contract worth Rs3,348 crore; the stock is down by 0.64%
Tata Consultancy Services inks five-year deal with Malaysia Airlines; the stock closes 2.27% higher
Click here for more stories
Post-market summary
Global signals
On Monday, March 15, 2010, the European stocks fell in early trades, as miners were pressurised by lingering worries over monetary tightening by the top commodities’ consumer China, while uncertainty over banking reform in the USA hurt financials. At the time of writing this report, FTSE 100 was trading 0.2% lower.
All the major Asian indices closed in the red. SGX Nifty closed 24 points lower.
US stock futures pointed to a lower opening on the Wall Street on Monday. However, the investors would be eagerly waiting for the industrial production data for February.
Indian indices
As the index of industrial production (IIP) readings for January 2010 (released on Friday) failed to enthuse investors, all eyes turned to advance tax numbers for India Inc and monthly inflation numbers that were to be announced today. Though the wholesale price index (WPI) for February 2010 (at 9.89% as against 8.56% for January 2010) was in line with the street’s expectations, it did not support the market.
However, good advance tax numbers for India Inc did help the market post a comeback in the second half. On news of Reliance Industries, India’s largest company by market capitalisation and a Sensex component, having paid Rs770 crore as advance tax for Q4 March 2010, almost double it paid in Q4 March 2009 (Rs365 crore), the company erased its earlier losses and posted gains of around 1%. Anyway, it was yet another lacklustre session and the market traded in a tight band of 17061-17166 (around 105 points). The Sensex finished at 17164, mere one point down, while the Nifty closed eight points lower at 5128.
Market sentiment
Brushing aside good advance tax numbers and inflation reading the advance/decline ratio stood at 0.53. Of the 2,893 shares traded on the BSE, 1,835 declined whereas 988 advanced.
Sectoral and stock screening
In a rather drab session, all the 13 sector indices except information technology (IT), TECk and fast moving moving consumer goods (FMCG) closed lower. Rising inflation, engendering fears that the Reserve Bank of India will step in to curb inflation by raising interest rates, hit the banking counter (BSE Bankex down 1.03%). Capital goods and public sector unit indices were also down by around 1%.
On stocks’ front, the top three gainers were--Chennai Petroleum Corporation (up 3.81%), Opto Circuits (up 3.74%) and Wipro (2.71% higher). The top three losers were--NMDC (down 4.99%), Hindustan Copper (4.77% lower) and Mahindra & Mahindra Financial Services (4.46% lower).
Viewing volumes
Sugar manufacturer Shree Renuka Sugars was the most actively traded share with over 1.01 crore shares changing hands on the BSE, followed by wind power major Suzlon Energy (0.40 crore shares), India’s second largest realty company Unitech (0.37 crore shares), Lanco Infratech (0.31 crore shares) and steel maker Ispat Industries (0.28 crore shares).
NSE Bulk Deals to Watch - March 15 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
15-MAR-2010,AKSHOPTFBR,Aksh Optifibre Limited,BP FINTRADE PRIVATE LIMITED,BUY,319805,21.87,-
15-MAR-2010,CORDSCABLE,Cords Cable Industries Li,NAVEEN SAWHNEY,BUY,69500,43.25,-
15-MAR-2010,MADHUCON,Madhucon Projects Limited,RELIANCE MUTUAL FUND A/C RELIANCE GROWTH FUND,BUY,877000,148.50,-
15-MAR-2010,MSKPROJ,MSK Projects (India) Limi,MANISH VRAJLAL SARVAIYA,BUY,122493,128.11,-
15-MAR-2010,RENUKA,Shree Renuka Sugars Limit,GENUINE STOCK BROKERS PVT LTD,BUY,1912262,75.28,-
15-MAR-2010,SEJALGLASS,Sejal Architectural Glass,ATUL UMAKANT REGE,BUY,206672,58.36,-
15-MAR-2010,SEJALGLASS,Sejal Architectural Glass,SARSWATI VINCOM LTD,BUY,150000,55.32,-
15-MAR-2010,SEJALGLASS,Sejal Architectural Glass,TANDON VINOD MURLIDHAR,BUY,152168,55.44,-
15-MAR-2010,SELMCL,SEL Manufacturing Company,SUNEET LAL,BUY,164158,79.82,-
15-MAR-2010,SELMCL,SEL Manufacturing Company,TRANS FINANCIAL RESOURCES LTD,BUY,808837,77.97,-
15-MAR-2010,SPECTACLE,Spectacle Industries Ltd,BHARAT G VAGHELA,BUY,335092,96.31,-
15-MAR-2010,SYNCOM,Syncom Healthcare Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,118718,118.95,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,86434,149.53,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,ARCHITA C GADA,BUY,78346,149.62,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,CPR CAPITAL SERVICES LTD.,BUY,204404,149.32,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,G RAMAKRISHNA,BUY,111675,148.10,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,353799,149.30,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,LAXMI GOVIND KULKARNI,BUY,95000,152.39,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,103290,150.41,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,154744,149.37,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,169270,150.42,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,NEPTUNE FINCOT PVT LTD,BUY,58418,151.54,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,OM INVESTMENTS,BUY,72676,149.21,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,PASHUPATI CAPITAL SERVICES PVT. LTD.,BUY,87938,148.99,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,PKC STOCK BROKING PRIVATE LIMITED,BUY,126541,150.21,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,PRUDENTIAL STOCK & SECURITIES LTD,BUY,103200,147.80,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,R APPALA RAJU,BUY,175000,149.81,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,R S SINDHU,BUY,116589,149.49,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,SANDIP RASIKLAL SHAH HUF,BUY,57573,149.05,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,SMART EQUITY BROKERS PRIVATE LIMITED,BUY,56788,148.32,-
15-MAR-2010,THINKSOFT,Thinksoft Global Ser Ltd,BHAKTISURI SHARES AND SERVICES,BUY,50662,200.04,-
15-MAR-2010,AKSHOPTFBR,Aksh Optifibre Limited,BP FINTRADE PRIVATE LIMITED,SELL,283518,21.93,-
15-MAR-2010,CORDSCABLE,Cords Cable Industries Li,ASHA MALHOTRA,SELL,61400,43.34,-
15-MAR-2010,CORDSCABLE,Cords Cable Industries Li,RAKESH MALHOTRA,SELL,77500,43.31,-
15-MAR-2010,MADHUCON,Madhucon Projects Limited,BLACKSTONE ASIA ADVISORS, LLC A/C THE INDIA FUND INC,SELL,879800,148.51,-
15-MAR-2010,MSKPROJ,MSK Projects (India) Limi,MANISH VRAJLAL SARVAIYA,SELL,122493,127.44,-
15-MAR-2010,RENUKA,Shree Renuka Sugars Limit,GENUINE STOCK BROKERS PVT LTD,SELL,1912262,75.30,-
15-MAR-2010,SEJALGLASS,Sejal Architectural Glass,TANDON VINOD MURLIDHAR,SELL,152168,55.51,-
15-MAR-2010,SELMCL,SEL Manufacturing Company,KII LTD.,SELL,400000,75.01,-
15-MAR-2010,SELMCL,SEL Manufacturing Company,KUVERA CAPITAL PARTNERS LLP A/C KUVERA FUND LIMITED,SELL,200000,75.01,-
15-MAR-2010,SELMCL,SEL Manufacturing Company,SUNEET LAL,SELL,164158,79.48,-
15-MAR-2010,SELMCL,SEL Manufacturing Company,TRANS FINANCIAL RESOURCES LTD,SELL,808837,80.86,-
15-MAR-2010,SPECTACLE,Spectacle Industries Ltd,BHARAT G VAGHELA,SELL,230865,96.20,-
15-MAR-2010,SYNCOM,Syncom Healthcare Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,118373,118.21,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,86434,149.77,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,ARCHITA C GADA,SELL,78346,149.56,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,CPR CAPITAL SERVICES LTD.,SELL,204404,149.35,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,G RAMAKRISHNA,SELL,111675,146.92,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,353799,149.47,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,LAXMI GOVIND KULKARNI,SELL,95000,148.20,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,103290,150.55,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,154744,149.56,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,167509,150.59,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,NEPTUNE FINCOT PVT LTD,SELL,58418,151.41,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,OM INVESTMENTS,SELL,72676,149.31,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,PASHUPATI CAPITAL SERVICES PVT. LTD.,SELL,87938,149.94,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,PKC STOCK BROKING PRIVATE LIMITED,SELL,126541,150.12,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,PRUDENTIAL STOCK & SECURITIES LTD,SELL,103200,148.82,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,R APPALA RAJU,SELL,175000,147.99,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,R S SINDHU,SELL,116589,149.55,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,SANDIP RASIKLAL SHAH HUF,SELL,57573,149.46,-
15-MAR-2010,TEXMOPIPES,Texmo Pipe & Products Ltd,SMART EQUITY BROKERS PRIVATE LIMITED,SELL,56788,148.35,-
Sensex ends flat with negative bias; M&M drops
Indian markets continued to fall for the second day on Monday. The benchmark index Sensex ended the volatile session on a flat note with negative bias as sell-off was seen in PSU, capital goods and banking stocks, while IT and teck gained marginally. Broader markets also traded flat. It opened in the red zone amid negative Asian shares and continued to trade lower on profit booking seen in frontliners. In the second half, index recovered by moving into the positive terrain on select buying amid volatility. Finally, it closed on a quite note after touching a high of 17,195.49 and low of 17,061.14.
At the close, the 30-share benchmark index, BSE Sensex ended flat with a decline of 1.63 points or 0.01% at 17,164.99, 14 components registering drop. Meanwhile, the broad based NSE Nifty went down by 8.10 or 0.16% at 5,128.90 with 30 components registering drop.
On global front, European stocks dropped and US index futures fell on concern China will take more steps to cool its economy and as Moody`s Investors Service said the US and UK are closer to losing their AAA credit ratings. Whereas, Asian stocks fell for the first time in three days, led by energy and commodity producers, on concern China will boost measures to cool economic growth that has been driving a global recovery.
Meanwhile, Wholesale price based inflation rose to 9.89% in February from 8.56% in the previous month due to increase in prices of certain food items such as sugar and the hike in excise duty on fuel announced last month.
Sensex Movers
ICICI Bank contributed fall of 19.84 points in the Sensex. It was followed by Housing Development Finance Corporation (13.48 points), State Bank Of India (11.15 points), Mahindra & Mahindra (8.99 points) and Oil & Natural Gas Corporation (8.54 points).
However, Infosys Technologies contributed rise of 18.39 points in the Sensex. It was followed by Reliance Industries (14.02 points), Tata Consultancy Services (13.96 points), Hindustan Unilever (8.27 points) and Wipro (7.44 points).
Biggest gainers in the 30-share index were Wipro (2.71%), Hindustan Unilever (2.62%), Jaiprakash Associates (2.38%), Tata Consultancy Services (2.27%), Infosys Technologies (1.07%), and Tata Motors (0.91%).
On the other hand, Mahindra & Mahindra (2.77%), Reliance Infrastructure (2.33%), Sun Pharmaceutical Industries (1.77%), ACC (1.61%), Housing Development Finance Corporation (1.46%), and State Bank Of India (1.45%) were the major losers in the Sensex.
Mid & Small-cap Space
The BSE Midcap index was at 6651.26 down by 49.59 points or by 0.74%. The major losers were Reliance MediaWorks (2.32%), Aban Offshore (1.93%), A I A Engineering (1.39%), Alfa-Laval (India) (1.02%) and Core Projects and Technologies (0.15%).
The BSE Smallcap index was at 8362.2 down by 70.29 points or by 0.83%. The major losers were Abhishek Industries (2.57%), Aarti Industries (1.95%), A B G Shipyard (1.22%), Action Construction Equipment (1%) and A B G Infralogistics (0.27%).
Sectors in Limelight
The Capital Goods index was at 13,634.19, down by 149.84 points or by 1.09%. The major losers were A B B (2.43%), BEML (1.92%), A I A Engineering (1.39%), Bharat Electronics (1.31%) and Bharat Bijlee (1.11%).
The Bankex index was at 10,235.13, down by 106.07 points or by 1.03%. The major losers were Federal Bank (2.78%), Canara Bank (1.98%), Bank Of India (1.77%), Allahabad Bank (1.1%) and Bank Of Baroda (0.9%).
The Realty index was at 3,361.10, down by 26.82 points or by 0.79%. The major losers were Indiabulls Real Estate (2.84%), Mahindra Lifespace Developers (1.36%), Anant Raj Industries (1.13%), Ansal Properties and Infrastructure (1.11%) and D L F (0.58%).
On the other hand, the IT index was at 5,411.69, up by 73.34 points or by 1.37%. The major gainers were H C L Technologies (2.7%), Tata Consultancy Services (2.27%), Oracle Financial Services Software (1.15%), Infosys Technologies (1.07%) and Patni Computer Systems (0.78%).
Market Breadth
Market breadth was negative with 989 advances against 1,860 declines.
Value and Volume Toppers
Man Infraconstruction topped the value chart on the BSE with a turnover of Rs. 1,266.77 million. It was followed by Texmo Pipes and Products (Rs. 1,008.24 million), Aban Offshore (Rs. 967.96 million) and Shree Renuka Sugars (Rs. 768.86 million).
The volume chart was led by Cals Refineries with trades of over 27.54 million shares. It was followed by Shree Renuka Sugars (10.05 million), Tamboli Capital (8.55 million) and Texmo Pipes and Products (6.60 million).
BSE Bulk Deals to Watch - March 15 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
15/3/2010 532047 Asian Films RAMAKANT (HUF) B 90284 2.95
15/3/2010 532047 Asian Films AAKASH DHANJI SETHIA B 100000 4.04
15/3/2010 532047 Asian Films AAKASH DHANJI SETHIA S 100000 2.92
15/3/2010 507944 Bajaj Steel MONEY MANAGERS B 11837 195.39
15/3/2010 507944 Bajaj Steel MONEY MANAGERS S 11837 200.66
15/3/2010 531591 Bampsl Sec PRAKASHCHAND GUPTA B 497000 1.22
15/3/2010 511607 Birla Shloka SAAKSHI SHARES PVT LTD B 74600 66.38
15/3/2010 505923 Ceekay Daikin HIMANI KATIMBADIA S 29041 167.75
15/3/2010 505923 Ceekay Daikin HEMANT HIRALAL KOTHARI S 25000 168.80
15/3/2010 503796 Digjam PAYAL COMMERCIAL COMPANY LIMITED B 1300000 11.07
15/3/2010 503796 Digjam BIRLA HOLDINGS LIMITED B 400000 11.07
15/3/2010 503796 Digjam ARCIL BIRLA VXL LIMITED TRUST S 1700000 11.07
15/3/2010 517973 DMC Intl CENTENARY SOFTWARE PVT LTD B 117560 21.23
15/3/2010 517973 DMC Intl SHALINI DHOOP P. LTD B 113000 21.76
15/3/2010 517973 DMC Intl CENTENARY SOFTWARE PVT LTD S 123760 21.49
15/3/2010 504351 Empower Inds MAHIPAT IWDARMAL MEHTA B 76255 39.94
15/3/2010 526614 Expo Gas BDS SHARE BROKERS PVT LTD B 47348 16.34
15/3/2010 526614 Expo Gas ABHAY YASHVANT DADBHAWALA B 40700 16.58
15/3/2010 526614 Expo Gas UMA KUNAREDDY S 48392 16.49
15/3/2010 526614 Expo Gas BDS SHARE BROKERS PVT LTD S 53048 16.42
15/3/2010 511668 Fact Enterprise N K AGARWAL & SONS B 30000 29.80
15/3/2010 511668 Fact Enterprise SOKATALI BADRUDIN VASAYA S 43500 29.76
15/3/2010 511668 Fact Enterprise NIJARALI BADRUDIN VASAYA S 43500 29.79
15/3/2010 532139 G Tech Info VIJAY TUKARAM CHILE S 723475 5.13
15/3/2010 515147 Haldyn Glass BP FINTRADE PRIVATE LIMITED S 418529 13.92
15/3/2010 532347 Helios & Matheson RAJNI TARUN JAIN B 160000 46.70
15/3/2010 532347 Helios & Matheson MC JAIN INFOSERVICES PVT.LTD. S 159900 46.70
15/3/2010 531025 Inca Finlease RAMESH CHANDRA SURAJ M B 24425 84.86
15/3/2010 531025 Inca Finlease JAYESH MEHTA B 25000 83.64
15/3/2010 531025 Inca Finlease BHAVESH G CHHEDA B 17800 79.02
15/3/2010 531025 Inca Finlease RAMAVATAR JAGATNARAYAN PATHAK B 15000 81.03
15/3/2010 531025 Inca Finlease SONU SINGH B 16700 81.04
15/3/2010 531025 Inca Finlease CHATALIANKITBHAI BHARATBHAI PATEL B 24000 81.20
15/3/2010 531025 Inca Finlease BHAGAVATIBEN GANDALAL PATEL B 24000 80.40
15/3/2010 531025 Inca Finlease SONU SINGH S 18950 80.88
15/3/2010 531025 Inca Finlease CHATALIANKITBHAI BHARATBHAI PATEL S 24000 84.90
15/3/2010 531025 Inca Finlease BHAGAVATIBEN GANDALAL PATEL S 24000 83.63
15/3/2010 531025 Inca Finlease BIRLA YAMAHA LIMITED S 68400 81.00
15/3/2010 531025 Inca Finlease RAMESH CHANDRA SURAJ M S 24425 81.21
15/3/2010 531025 Inca Finlease JAYESH MEHTA S 25000 80.44
15/3/2010 531025 Inca Finlease GLOBAL FILM & BORD CASTING LTD S 39002 79.77
15/3/2010 509684 India Foils ESS DEE ALUMINIUM LTD S 211187 6.21
15/3/2010 532072 Interworld Dig FIRSTBIZ NETWORK PRIVATE LIMITED S 275000 3.49
15/3/2010 513691 JMT Auto ANMOL FINPRO PVT LTD S 90870 67.59
15/3/2010 531784 Kadamb Constr CLOCK SIGN TRADING CO PVT LTD S 125545 46.00
15/3/2010 531784 Kadamb Constr SATELLITE EXIM PRIVATE LIMITED S 77000 47.18
15/3/2010 530955 Kailash Ficom GOODNESS TRADING PRIVATE LIMITED B 83506 25.34
15/3/2010 530955 Kailash Ficom NILESH KRUSHNA PALANDE B 105000 25.89
15/3/2010 530955 Kailash Ficom ABHIJAI INVESTMENT B 124200 25.89
15/3/2010 530955 Kailash Ficom VISHAL INFORMATION TECHNOLOGIES LTD B 170000 25.92
15/3/2010 530955 Kailash Ficom VISHAL INFORMATION TECHNOLOGIES LTD B 80000 25.49
15/3/2010 530955 Kailash Ficom NARAYAN SECURITIES LIMITED S 104000 25.50
15/3/2010 530955 Kailash Ficom SHREE HARIVANSH SEC PVT LTD S 60000 25.95
15/3/2010 530955 Kailash Ficom KASTURI TOWERS LTD S 90000 25.95
15/3/2010 523810 Kaleidoscope Films VINOD KUMAR B 350000 6.77
15/3/2010 523810 Kaleidoscope Films CHEVIOT INTERNATIONAL LTD S 282470 6.95
15/3/2010 530255 KAY Power KAUSHALYA GARG B 127770 16.52
15/3/2010 530255 KAY Power BAMPSL SECURITIES LTD B 252806 16.60
15/3/2010 530255 KAY Power PRAKASHCHAND GUPTA B 94000 15.94
15/3/2010 530255 KAY Power NARENDER GUPTA B 73750 16.43
15/3/2010 530255 KAY Power KAUSHALYA GARG S 200000 16.26
15/3/2010 530255 KAY Power BAMPSL SECURITIES LTD S 232516 16.05
15/3/2010 530547 KEN Fin Serv KANCHANBEN ANANTRAI VORA B 98325 32.75
15/3/2010 530547 KEN Fin Serv RENU RATANLAL PARASRAM PURIA S 24500 32.75
15/3/2010 530547 KEN Fin Serv BHUPENDRA DEVICHARAN KASHYAP S 24500 32.75
15/3/2010 530547 KEN Fin Serv BAGARIA NAROTTAM S 20900 32.75
15/3/2010 514450 Mahalaxmi Rub MUKESH KUSHIRAM WADHWANI B 164914 92.74
15/3/2010 514450 Mahalaxmi Rub MUKESH KUSHIRAM WADHWANI S 170901 92.02
15/3/2010 531540 Maruti Infra HITESH INIMESHBHAI PATEL B 75000 10.80
15/3/2010 531540 Maruti Infra SANGADA VASANTBHAI MAGANBHAI S 40000 10.80
15/3/2010 531221 Mayur Floorings SURESH BHOORCHAND SHAH B 30000 9.60
15/3/2010 531221 Mayur Floorings KHEM SUM APPARELS OVERSEAS LTD S 30100 9.60
15/3/2010 590060 MK Exim RISHAB RAJKUMAR BILALA B 20000 26.90
15/3/2010 532724 Mounteverest Trd AAMOD SECURITIES PRIVATE LTD B 11830 136.50
15/3/2010 532724 Mounteverest Trd MUKUND MOTOR PARTS PVT LTD S 12122 136.50
15/3/2010 511535 NDA Securities HIRA LAL SOMANI (HUF) B 136585 14.57
15/3/2010 511535 NDA Securities ANIL AGGARWAL S 130000 14.58
15/3/2010 532912 Net 4 India INDIA MAX INVESTMENT FUND LIMITED B 100000 87.00
15/3/2010 531496 Omkar Overseas FALGUNIBEN MAHAVIRBHAI GOHIL S 34469 61.22
15/3/2010 531496 Omkar Overseas CHAMPALAL GOPIRAM AGARWAL S 25699 61.20
15/3/2010 512097 Oregon Comm SHYAM CONSTRUCTION B 21250 203.61
15/3/2010 512097 Oregon Comm MOTILAL OSWAL FINANCIAL SERVICES LTD S 6225 201.96
15/3/2010 512097 Oregon Comm NIMAI AGENCIES PRIVATE LIMITED S 6375 200.25
15/3/2010 512097 Oregon Comm PATEL SHAILESH JIVANLAL S 9000 205.09
15/3/2010 517195 ORG Informatics HARI NAMBALAL CHOKSI S 116935 12.10
15/3/2010 504864 Orissa Spong UNISYS SOFTWARES AND HOLDING INDUSTRIES LTD B 100000 342.50
15/3/2010 504864 Orissa Spong BEK TRADING COMPANY S 100000 342.50
15/3/2010 531726 Panchsheel Org MAHENDRA ABHAYCHAND TURAKHIA B 62000 22.66
15/3/2010 531726 Panchsheel Org KISHORE B KUMBHAI S 35000 22.50
15/3/2010 530923 Passari Cellu TARUNKUMAR G BRAHMBHATT B 28613 65.58
15/3/2010 530923 Passari Cellu GAUTAMCHAND CHOPRA & SONS S 33197 66.00
15/3/2010 503873 Priyadarshini Spn MARUTI TRADERS AND INVESTORS B 64000 18.96
15/3/2010 503873 Priyadarshini Spn PARAS RAM SOMANI S 60000 18.96
15/3/2010 531611 Prraneta Inds AMRAPALI CAPITAL AND FINANCE SERVICES LIMITED B 1100000 41.23
15/3/2010 502587 Rama Pulp SURESH SWAROOPCHAND MEHTA S 75000 27.78
15/3/2010 590077 Ranklin Sol P T N V AMBICA RAMA SUDARSHAN B 35500 54.50
15/3/2010 590077 Ranklin Sol VENKATA BADRINARAYANAMMA GOLLAPUDI S 35500 54.50
15/3/2010 590077 Ranklin Sol SATYANARAYANA VARAPRASAD GARIKIPATY S 30500 54.92
15/3/2010 526723 RDB Inds BIRMI DEVI B 100291 112.44
15/3/2010 526723 RDB Inds PINAC STOCK BROKERS PVT LTD B 100000 110.43
15/3/2010 526723 RDB Inds ALPESH JANTILAL PANDIT B 109309 109.46
15/3/2010 526723 RDB Inds SHEFALI DEEPAK SHAH B 109550 112.80
15/3/2010 526723 RDB Inds BIRMI DEVI S 100291 110.01
15/3/2010 526723 RDB Inds PINAC STOCK BROKERS PVT LTD S 100000 110.00
15/3/2010 526723 RDB Inds ALPESH JANTILAL PANDIT S 109309 110.39
15/3/2010 526723 RDB Inds SHEFALI DEEPAK SHAH S 109550 110.00
15/3/2010 530271 Rich Capital SCOPE VYAPAR PRIVATE LIMITED B 53914 83.80
15/3/2010 512359 Rotam Comm PRADIPBHAI RAMBHAI PATEL S 4900 139.25
15/3/2010 531374 SAAG RR Infra RAJNI TARUN JAIN B 52500 18.75
15/3/2010 531374 SAAG RR Infra MC JAIN INFOSERVICES PVT.LTD. S 52500 18.75
15/3/2010 531781 Sapan Chem SHIWANI AGARWAL B 50000 5.00
15/3/2010 531781 Sapan Chem ARPITA BINDAL B 76258 5.00
15/3/2010 531781 Sapan Chem ABHIJAI INVESTMENT S 50000 5.00
15/3/2010 531781 Sapan Chem NAGABHUSHANA RAO GADDE S 80824 5.03
15/3/2010 533056 SARK SYS SWETA TIBREWALA B 80000 14.71
15/3/2010 533056 SARK SYS SANKAR SEN S 56000 14.71
15/3/2010 533056 SARK SYS RAHUL RAJU KANUMURU S 100000 14.71
15/3/2010 532993 Sejal Arch PINAC STOCK BROKERS PVT LTD B 145887 54.94
15/3/2010 532993 Sejal Arch NIRAJ HARSUKHLAL SANGHAVI B 156805 55.03
15/3/2010 532993 Sejal Arch ATUL UMAKANT REGE B 293491 59.23
15/3/2010 532993 Sejal Arch PINAC STOCK BROKERS PVT LTD S 145887 55.59
15/3/2010 532993 Sejal Arch NIRAJ HARSUKHLAL SANGHAVI S 156805 56.85
15/3/2010 532886 SEL Mfg Company TRANS FINANCIAL RESOURCES LIMITED B 475994 78.67
15/3/2010 532886 SEL Mfg Company KUVERA CAPITAL PARTNERS LLP A/C KUVERA FUND LIMITED S 200000 75.01
15/3/2010 532886 SEL Mfg Company TRANS FINANCIAL RESOURCES LIMITED S 475994 78.70
15/3/2010 512289 Shirpur Gold MEHTA NEMISH JAYKISHOR B 83995 169.09
15/3/2010 512289 Shirpur Gold MEHTA NEMISH JAYKISHOR S 82979 168.82
15/3/2010 531693 Shri Ganesh Spi ASHIKA SHARE TRADING PRIVATE LIMITED B 700000 15.71
15/3/2010 531693 Shri Ganesh Spi KAUSHIK SHAH SHARES & SEC. LTD B 350000 16.39
15/3/2010 531693 Shri Ganesh Spi CHANDRAKANT B SHAH S 386777 16.41
15/3/2010 531693 Shri Ganesh Spi JIGNESH CHANDRAKANT SHAH S 713286 16.14
15/3/2010 531693 Shri Ganesh Spi VIJAY TUKARAM CHILE S 331000 15.71
15/3/2010 531645 Southern Ispat J V STOCK BROKING PRIVATE LIMITED B 65872 20.32
15/3/2010 531645 Southern Ispat J V STOCK BROKING PRIVATE LIMITED S 65872 20.58
15/3/2010 526133 Supertex Inds SANKET ATULKUMAR SHAH S 500000 2.51
15/3/2010 512257 Swasti Vinay Gem ACHALA ELECTRICALS PRIVATE LIMITED S 173522 5.50
15/3/2010 533157 SYNCOM HEAL TRANSGLOBAL SECURITIES LTD. B 106478 117.90
15/3/2010 533157 SYNCOM HEAL OPG SECURITIES P LTD B 88143 117.28
15/3/2010 533157 SYNCOM HEAL TRANSGLOBAL SECURITIES LTD. S 106123 118.79
15/3/2010 533157 SYNCOM HEAL OPG SECURITIES P LTD S 88143 117.47
15/3/2010 533170 TAMBOLI CAP ANIL KUMAR MITTAL B 79717 43.25
15/3/2010 533170 TAMBOLI CAP AUM SECURITIES PVT. LTD B 50000 50.59
15/3/2010 533170 TAMBOLI CAP DEEPAK SHANTILAL CHHEDA B 180872 47.93
15/3/2010 533170 TAMBOLI CAP AMIT MANILAL GALA B 137249 46.74
15/3/2010 533170 TAMBOLI CAP GENUINE STOCK BROKERS PVT. LTD. B 118373 49.23
15/3/2010 533170 TAMBOLI CAP M/S. RIKHAV INVESTMENTS B 92952 49.93
15/3/2010 533170 TAMBOLI CAP SMART EQUITY BROKERS PRIVATE LIMITED B 87820 51.62
15/3/2010 533170 TAMBOLI CAP TRANSGLOBAL SECURITIES LTD. B 55730 50.64
15/3/2010 533170 TAMBOLI CAP A K G SECURITIES AND CONSULTANCY LTD B 106532 44.48
15/3/2010 533170 TAMBOLI CAP VIKASH KHAITAN B 112884 46.13
15/3/2010 533170 TAMBOLI CAP ALFA FISCAL SERVICES PVT LTD B 52332 46.76
15/3/2010 533170 TAMBOLI CAP MATRIX EQUITRADE PRIVATE LIMITED LIMITED B 79181 50.83
15/3/2010 533170 TAMBOLI CAP MARWADI SHARES AND FINANCE LTD. B 72253 49.69
15/3/2010 533170 TAMBOLI CAP Naman Securities & Finance Pvt. Ltd. B 67458 49.42
15/3/2010 533170 TAMBOLI CAP AMEET BHADRESH DALAL B 50000 44.81
15/3/2010 533170 TAMBOLI CAP KODAI INVESTMENT & TRD B 50000 42.60
15/3/2010 533170 TAMBOLI CAP SURYAKANT MATULAL SHAH B 50000 45.98
15/3/2010 533170 TAMBOLI CAP MILA JAYDEEP CHAKRABARTY B 50170 50.85
15/3/2010 533170 TAMBOLI CAP PRAGYA EQUITIES PRIVATE LIMITED B 50082 47.28
15/3/2010 533170 TAMBOLI CAP NAVEEN TAPARIA B 55629 46.09
15/3/2010 533170 TAMBOLI CAP BRUBECK RESOURCES PRIVATE LIMITED B 50000 42.80
15/3/2010 533170 TAMBOLI CAP KESHAV REALTORS PVT LTD B 50000 43.23
15/3/2010 533170 TAMBOLI CAP BP FINTRADE PRIVATE LIMITED B 76025 48.58
15/3/2010 533170 TAMBOLI CAP C R KOTHARI AND SONS STOCK BROKING PVT. LTD. B 80000 51.97
15/3/2010 533170 TAMBOLI CAP AUM SECURITIES PVT. LTD S 50000 42.80
15/3/2010 533170 TAMBOLI CAP DEEPAK SHANTILAL CHHEDA S 180872 47.95
15/3/2010 533170 TAMBOLI CAP AMIT MANILAL GALA S 137249 47.02
15/3/2010 533170 TAMBOLI CAP GENUINE STOCK BROKERS PVT. LTD. S 118373 49.39
15/3/2010 533170 TAMBOLI CAP M/S. RIKHAV INVESTMENTS S 90952 50.24
15/3/2010 533170 TAMBOLI CAP SMART EQUITY BROKERS PRIVATE LIMITED S 87820 52.05
15/3/2010 533170 TAMBOLI CAP TRANSGLOBAL SECURITIES LTD. S 55730 50.89
15/3/2010 533170 TAMBOLI CAP A K G SECURITIES AND CONSULTANCY LTD S 106532 44.41
15/3/2010 533170 TAMBOLI CAP VIKASH KHAITAN S 124884 43.79
15/3/2010 533170 TAMBOLI CAP ALFA FISCAL SERVICES PVT LTD S 52332 46.91
15/3/2010 533170 TAMBOLI CAP MATRIX EQUITRADE PRIVATE LIMITED LIMITED S 79181 51.27
15/3/2010 533170 TAMBOLI CAP MARWADI SHARES AND FINANCE LTD. S 72253 49.66
15/3/2010 533170 TAMBOLI CAP SHARAD K SHAH S 75168 51.85
15/3/2010 533170 TAMBOLI CAP Naman Securities & Finance Pvt. Ltd. S 67458 49.54
15/3/2010 533170 TAMBOLI CAP AMEET BHADRESH DALAL S 50000 43.69
15/3/2010 533170 TAMBOLI CAP KODAI INVESTMENT & TRD S 50000 45.95
15/3/2010 533170 TAMBOLI CAP SURYAKANT MATULAL SHAH S 50000 42.59
15/3/2010 533170 TAMBOLI CAP JNJ HOLDINGS PVT. LTD. S 50000 48.34
15/3/2010 533170 TAMBOLI CAP MILA JAYDEEP CHAKRABARTY S 50170 42.75
15/3/2010 533170 TAMBOLI CAP PRAGYA EQUITIES PRIVATE LIMITED S 50082 49.88
15/3/2010 533170 TAMBOLI CAP NAVEEN TAPARIA S 55629 47.26
15/3/2010 533170 TAMBOLI CAP KESHAV REALTORS PVT LTD S 50000 44.52
15/3/2010 533170 TAMBOLI CAP BP FINTRADE PRIVATE LIMITED S 76025 48.43
15/3/2010 533170 TAMBOLI CAP C R KOTHARI AND SONS STOCK BROKING PVT. LTD. S 80000 43.16
15/3/2010 533170 TAMBOLI CAP ANIL KUMAR MITTAL S 79717 51.96
15/3/2010 533164 TEXMO PIPES GENUINE STOCK BROKERS PVT. LTD. B 270760 148.97
15/3/2010 533164 TEXMO PIPES SMART EQUITY BROKERS PRIVATE LIMITED B 257689 151.06
15/3/2010 533164 TEXMO PIPES A K G STOCK BROKERS PRIVATE LIMITED B 72888 149.55
15/3/2010 533164 TEXMO PIPES MARWADI SHARES AND FINANCE LTD. B 134590 149.05
15/3/2010 533164 TEXMO PIPES SANJEEV SINGHAL B 150370 150.20
15/3/2010 533164 TEXMO PIPES OPG SECURITIES P LTD B 333998 149.16
15/3/2010 533164 TEXMO PIPES Naman Securities & Finance Pvt. Ltd. B 56415 152.38
15/3/2010 533164 TEXMO PIPES RKSV SECURITIES INDIA PRIVATE LIMITED B 61607 146.28
15/3/2010 533164 TEXMO PIPES NIMIT JAYENDRA SHAH B 90369 147.12
15/3/2010 533164 TEXMO PIPES NAVEEN TAPARIA B 68694 148.99
15/3/2010 533164 TEXMO PIPES GENUINE STOCK BROKERS PVT. LTD. S 270760 148.85
15/3/2010 533164 TEXMO PIPES SMART EQUITY BROKERS PRIVATE LIMITED S 257689 151.11
15/3/2010 533164 TEXMO PIPES A K G STOCK BROKERS PRIVATE LIMITED S 72888 149.38
15/3/2010 533164 TEXMO PIPES MARWADI SHARES AND FINANCE LTD. S 134590 148.89
15/3/2010 533164 TEXMO PIPES SANJEEV SINGHAL S 150370 150.22
15/3/2010 533164 TEXMO PIPES OPG SECURITIES P LTD S 333998 149.19
15/3/2010 533164 TEXMO PIPES RKSV SECURITIES INDIA PRIVATE LIMITED S 61607 145.45
15/3/2010 533164 TEXMO PIPES NIMIT JAYENDRA SHAH S 90369 148.27
15/3/2010 533164 TEXMO PIPES NAVEEN TAPARIA S 68694 149.27
15/3/2010 507205 Tilaknagar Inds AMIT ARUN DAHANUKAR S 190000 109.69
15/3/2010 531249 Well Pack Papers SHOBHNABEN R PARMAR S 502270 29.53
15/3/2010 531249 Well Pack Papers PANDYA YAMINIBEN M S 329924 30.12
15/3/2010 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR S 395145 29.76
15/3/2010 531249 Well Pack Papers RAMESHBHAI V PARMAR S 243643 31.11
* B - Buy, S - Sell
Interest rate sensitive stocks slide as inflation hits 16-month high
Encouraging advance tax figures of top Indian firms for Q4 March 2010 triggered intraday recovery on the domestic bourses in what was a choppy trading session. The market closed flat for the day. However, the broad market was weak as lower global stocks weighed on investor sentiment. Index heavyweight Reliance Industries (RIL) rose on reports it has paid sharply higher advance tax in the fourth and final installment which falls due on 15 March 2010.
Interest rate sensitive auto, banking and realty stocks fell on rate-hike worries as headline inflation reached 16-month high. FMCG and IT stocks rose. The BSE 30-share Sensex was down 1.63 points or 0.01%, up close to 105 points from the day's low and off close to 30 points from the day's high.
Stocks were volatile. The market moved lower in early trade tracking weak Asian stocks. It cut losses later. The market weakened again later with the Sensex hitting a fresh intraday low in morning trade. It pared gains in early afternoon trade as figures of Q4 advance tax filtered in. The recovery gathered further steam with the Sensex later moving into positive zone. The Sensex hit a fresh intraday high in mid-afternoon trade. The market moved between positive and negative terrain in late trade.
NSE's volatility index, India VIX, rose 2.69% at 20.26. The index had witnessed a steep post-Budget slide. Typically, volatility surges ahead of a major event such as the Budget. It falls after the event. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.
The Q4 March 2010 advance tax payment numbers of top Indian firms have started trickling in. Reliance Industries has paid Rs 770 crore as advance tax for the March quarter compared with Rs 365 crore a year ago. Cement maker ACC paid Rs 330 crore compared to Rs 340 crore a year ago. Ambuja Cement paid Rs 120 crore, compared with Rs 125 crore a year ago.
Infosys' tax outgo has doubled to Rs 250 crore from Rs 125 crore. Tata Consultancy Services paid Rs 178 crore, compared from Rs 53 crore earlier. State-run Union Bank of India paid Rs 185 crore compared with Rs 253 crore a year ago. ICICI Bank's Q3 advance tax stood at Rs 350 crore versus Rs 250 crore a year ago. Asian Paints paid Rs 60 crore, versus Rs 43 crore year earlier.
State Bank of India has paid Rs 1857 crore verses Rs 1810. HDFC paid Rs 280 crore, unchanged from a year earlier. Tata Motors paid Rs 115 crore versus Nil a year ago. Bank of Baroda paid Rs 300 crore verses Rs 280. Zee Entertainment Enterprises paid Rs 97 crore versus Rs 109. Tata Steel paid Rs 513 crore versus Rs 406 crore. L&T paid Rs 270 crore versus Rs 275 crore. Bajaj Auto paid Rs 177 crore versus Rs 60 crore. M&M paid Rs 235 crore versus nil a year earlier.
On the macro front, the latest data showed that inflation based on the wholesale price index (WPI) jumped 9.89% in February 2010, a 16-month high. The food price index in WPI rose 17.79%. The WPI in February was higher than a rise of 8.56% in January 2010. Meanwhile, the WPI for December 2009 revised upwards to 8.1% from a provisional rise of 7.31%. At its January policy review, the Reserve Bank had raised its WPI inflation projection for end-March 2010 to 8.5%.
Chief economic adviser in the finance ministry Kaushik Basu said the wholesale price inflation is expected to remain at a 16-month high in March 2010. Reserve Bank deputy governor Shyamala Gopinath said in a television interview on Monday that inflation would ease over a period of time.
Growth in the industrial output eased in January, after a record expansion in December. Finance Minister Pranab Mukherjee cited the data in parliament to argue that India's economic growth was not merely government-spending driven.
The data released on Friday showed industrial output grew 16.7% in January, below an upwardly revised 17.6% growth in December. Between April and January, industrial output in Asia's third-largest economy expanded 9.6%. It grew 2.6% in the year to March 2009. Manufacturing output grew by an annual 17.9% in January, easing from 18.5% growth recorded in December.
The economy is seen expanding by more than 7.2% in the year to March 2010, with growth accelerating to 8.5% in 2010/11 and 9% in 2011/12.
The Reserve Bank is expected to raise its key lending rate by as much as 50 basis points in April 2010 to tame inflation. The rate hike would come two months after Pranab Mukherjee raised factory gate taxes in the budget for 2010/11, the beginning of unwinding stimulus measures. Mukherjee said on Friday corrective economic steps have to be taken to tame inflation.
The government's plan to borrow $100 billion in the year to March 2011 has added to expectations market rates would rise and hurt industry.
Meanwhile, the Union Cabinet has reportedly approved a proposal to allow foreign universities to set up units in the country. The proposal will now go to parliament for ratification.
Coming back to stocks, equities have witnessed a good post-Budget rally driven by sustained buying by foreign funds since the presentation of the Union Budget 2010-2011 on 26 February 2010. As per data from the stock exchanges, foreign institutional investors (FIIs) bought stocks worth a net Rs 8187.65 crore this month, till 12 March 2010.
The stock market has applauded the Union Budget 2010-2011 due to its thrust on infrastructure development, government's pledge to reduce fiscal deficit over the next three years, a smaller-than-expected 2% hike in excise duties, and reduction in taxes for individuals which will boost disposable income. The Finance Minister has assumed a modest GDP of about 8% and inflation of about 4.5% for 2010-2011.
Going ahead, the key triggers for the stock market are structural reforms such as decontrol of petrol and diesel prices, targeting of food subsidies, and financial sector reforms such as increase in foreign direct investment in insurance sector.
Europe stocks opened flat to weaker on Monday, ahead of a slow day on the corporate and economic news side and softer Asian markets setting the tone. The key benchmark indices in France, Germany and UK fell by between 0.08% to 0.2%.
Most Asian stocks fell on Monday after weak US consumer confidence data overshadowed strong retail numbers and curbed demand for risky assets. The key benchmark indices in China, Hong Kong, South Korea, Singapore and Taiwan fell by between 0.24% to 1.46%. But, key benchmark indices in Japan and Indonesia rose by between 0.01% to 0.12%.
US index futures weakened Monday as a rating agency said the risks to credit ratings of Triple-A nations including the United States have grown as China's premier warned of the risks of a double-dip recession. Trading in US index futures indicated that the Dow could fall 31 points at the opening bell on Monday, 15 March 2010.
Moody's Investors Service said the risks are growing to the four largest AAA-rated countries -- Germany, France, the UK and the US. Meanwhile, Chinese Premier Wen Jiabao warned of a double-dip recession given financial system risks and continued high unemployment in some countries.
Mixed economic data kept US stocks near break even on Friday 12 March 2010. Sales at US retailers increased 0.3% in February, the Commerce Department said, compared with a 0.2% decline projected by economists. But a separate report showed consumer sentiment edged lower in early March, according to a survey that noted a less positive view of the job outlook. In other economic data, the Commerce Department said business inventories were unchanged in January, compared with a forecast for a 0.2% rise.
The Dow Jones industrial average gained 12.85 points, or 0.12%, to end at 10,624.69 on Friday. The Standard & Poor's 500 Index shed 0.25 point, or 0.02%, to 1,149.99. The Nasdaq Composite Index dipped 0.80 point, or 0.03%, to close at 2,367.66.
It is widely expected that the US Federal Reserve will keep the fed funds rate, its key lending rate, at a historic low near zero when it meets on Tuesday, 16 March 2010. That means investors and analysts will again pore over the economic assessment statement the Fed releases. They will be looking for changes to the Fed's wording and its members' voting patterns to get a sense of when rates might go up.
It could take several months of solid, significant economic growth before the Fed starts to tinker with the language of its statement or interest rates. Consistent job growth is probably the single biggest factor the Fed will look at when determining when to considering raising rates.
Meanwhile, finance ministers from countries using the euro hope to agree on Monday on a way of providing heavily indebted Greece with financial aid, despite French and German doubts that a deal will be reached.
Close home, the BSE 30-share Sensex was down 1.63 points or 0.01% to 17,164.99. The barometer index rose 28.87 points at the high of 17,195.49 in mid-afternoon trade. The Sensex fell 105.48 points at the day's low of 17,061.14 in morning trade.
The S&P CNX Nifty was down 8.10 points or 0.16% at 5128.90. Nifty March 2010 futures were at 5,135.65, at a premium of 6.75 points over spot closing of 5,128.90. Turnover in NSE's futures & options (F&O) segment was Rs 61,582.01 crore, lower than Rs 64,652.67 crore on Friday, 12 March 2010.
The BSE Mid-Cap index fell 0.74% and the BSE Small-Cap index fell 0.83%. Both the indices underperformed the Sensex.
The BSE IT index (up 1.37%), the BSE Teck index (up 0.98%), BSE FMCG index (up 0.74%), outperformed the Sensex.
The BSE PSU index (down 1.38%), the BSE Capital Goods index (down 1.09%), the BSE Bankex (down 1.03%), the BSE Realty index (down 0.79%), the BSE Auto index (down 0.71%), the BSE Power index (down 0.61%), the BSE Consumer Durables index (down 0.54%), the BSE HealthCare index (down 0.28%), the BSE Oil & Gas index (down 0.17%), the BSE Metal index (down 0.15%), underperformed the Sensex.
BSE clocked a turnover of Rs 3355 crore, lower than Rs 4073.55 crore on Friday, 15 March 2010.
The market breadth indicating the overall health of the market was weak. On BSE, 984 shares advanced as compared with 1839 that declined. A total of 70 shares remained unchanged.
Among the 30-member Sensex pack, 15 fell while the rest rose.
Index heavyweight Reliance Industries (RIL) rose 0.64% to Rs 1027.75. The stock came off the day's low of Rs 1014.10. As per the market buzz, RIL's Q4 advance tax surged to Rs 770 crore from Rs Rs 365 crore a year ago.
Reliance Industries on Sunday announced a sports and entertainment joint venture with IMG Worldwide, a global leader in sports marketing and management. The equal venture, IMG Reliance, will set up modern infrastructure and coaching facilities for sports and create and operate sports and entertainment assets including celebrity management.
Realty shares fell as the Budget proposed to impose service tax on the realty sector both on commercial rentals as well as on sale of under-construction housing units. The service tax would come to be about 3.5% of the cost of the apartment that includes the value of the land and also the cost of construction, realty body Credai said recently. Unitech, Indiabulls Real Estate, DLF, HDIL fell by between 0.13% to 2.84%.
Realty major DLF recently hinted that properties would turn dearer as developers would have to pass on the service tax burden to end-users.
FMCG stocks rose on government's thrust on rural spending and social schemes in the Union budget. India's largest FMCG maker by sales Hindustan Unilever (HUL) rose 2.62% on bargain hunting after a sharp fall in past few days after the company's competitor Procter & Gamble raised the weight of its 'Tide Naturals' detergent powder by 25%, effectively offering consumers lower pricing. HUL's Q4 advance tax payment rose to Rs 170 crore from Rs 130 crore a year ago.
Among other FMCG stocks, Tata Tea, Nestle India, ITC, Britannia Industries and United Spirits rose by between 0.25% to 0.9%.
Banking stocks fell on expectations the central bank may raise rates to tame inflation. India's largest bank by net profit and branch network State Bank of India (SBI) fell 1.45%. Its Q4 advance tax payment rose to Rs 1857 crore from Rs 1810 a year earlier. State Bank of India (SBI) chairman OP Bhatt recently said the bank is looking at tapping the retail bond market next year with a 10-year issue, although the initial issue size may be as small as Rs 50-100 crore.
Meanwhile, a bill seeking to reduce Centre's shareholding in the SBI from 55% now to 51% and to allow the bank to raise more capital from the market through preference shares, was introduced in the Lok Sabha recently. The amendment bill seeks to provide for enhancement of the capital of SBI by issue of preference shares, to enable it to raise resources from the market by public issue or preferential allotment or private placement. The bill also aims to provide for flexibility in the management of the bank
India's largest private sector bank by net profit ICICI Bank fell 1.44% to Rs 923.40. Nevertheless, the stock came off the day's low of Rs 915.40 as the private sector bank's Q3 advance tax payment surged to Rs 350 crore versus Rs 250 crore a year ago. Its ADR fell 0.1% on Friday.
India's largest private sector bank by net profit HDFC Bank rose 0.58%. Its ADR fell 1.03% on Friday.
Banks' non-performing assets have reportedly shot up nearly 30% at the end of calendar 2009 from a year ago due to stress in many sectors and farm loan waiver, indicating sharply lower profits for banks and possibility of curbs on exposure to sectors that have contributed to the bad assets.
India's largest mortgage lenger by market capitalisation Housing Development Finance Corporation fell 1.46% on reports the company's advance tax payment for Q4 March 2010 was unchanged at Rs 280 crore compared with Q4 March 2009.
IT stocks rose as rupee dropped against the dollar. Higher advance tax payment by top IT firms aided the rally. India's third largest software services exporter by sales Wipro rose 2.71%. Its ADR rose 0.39% on Friday.
India's largest software services exporter by sales Tata Consultancy Services (TCS) rose 2.27%, with the stock gaining for the fourth day. The company said today it signed a five year contract with Malaysia Airlines for providing end-to-end information technology infrastructure services. Meanwhile, TCS has paid Rs 178 crore in advance tax compared with Rs 53 crore a year earlier.
India's second largest software services exporter by sales Infosys rose 1.07%, as its fourth quarter advance tax payment doubled. Its ADR fell 1.42% on Friday.
The rupee weakened on Monday, weighed down by gains in the dollar against major currencies and losses in the local sharemarket. The partially convertible rupee was at 45.60 per dollar, weaker than 45.43/44 at close on Friday, 12 March 2010. The rupee has witnessed a strong rally in the past few days. A firm rupee negatively impacts operating profit margin of IT firms as the sector derives a lion's share of revenue from exports.
India's largest steel maker by sales Tata Steel rose 0.42%. Its Q4 advance tax payment rose to Rs 513 crore from Rs 406 crore a year earlier.
India's largest engineering & construction firm by sales Larsen & Toubro (L&T) fell 0.7%. Its Q4 advance tax payment fell marginally to Rs 270 crore versus Rs 275 crore a year earlier.
Auto stocks fell as a rise in raw material prices coupled with costs associated with new emission norms could force them to increase prices further, which may hit volumes. The government raised excise duties on large cars and sport utility vehicles by 2%, which was immediately passed on by vehicles makers, including top carmaker Maruti Suzuki and utility vehicle makers Mahindra & Mahindra and Tata Motors. From 1 April 2010, all vehicles will have to comply with Euro IV emission norms across 13 major cities, adding to costs and setting the stage for another round of price hikes.
India's largest car maker by sales Maruti Suzuki India fell 1.19%, with the stock down for the fourth straight day on fears increase in competition may dent sales. Last week Ford India entered the small car market with 'Figo'. Maruti Suzuki India, last week said that Japanese auto giant Nissan has placed orders for 35,000 units of its small car A- Star for 2010-11 to sell it in the European market. Nissan sources the A-Star from Maruti's Manesar facility and sells it in the European market as 'Pixo'.
India's largest bike maker by sales Hero Honda Motors fell 0.36%. Hero Honda has shortlisted Karnataka as one of the states for setting up its fourth manufacturing plant. Hero Honda Motors has reportedly proposed an investment of Rs 2,000 crore for the upcoming plant.
Bajaj Auto fell 0.8%. Its Q4 advance tax payment surged to Rs 177 crore from Rs 60 crore a year earlier.
India's largest tractor maker by sales Mahindra & Mahindra (M&M) fell 2.77%. The company paid Rs 235 crore in advance tax versus nil payment a year earlier.
India's largest commercial vehicle maker by sales Tata Motors' rose 0.91% after group global sales rose 59 % in February from a year earlier, the company said in a statement on Monday.
India's second largest mobile services provider by sales Reliance Communications rose 0.57% after the company's wireless users crossed 10 crore mark by mid-March 2010. Mahesh Prasad, president of wireless business told the media that the additions came from subscribers in both the GSM and CDMA platforms. He added that the company will reach the next 10 crore user subscription mark in the next 1,000 days. As of January 2010, Reliance Communications' total subscriber base stood at 9.66 crore.
India's largest mobile services provider by sales Bharti Airtel rose 0.17%. As per reports, SingTel may help with the funding for Bharti Airtel's $9 billion acquisition of Zain's African assets. SingTel owns 32% stake in Bharti Airtel.
Consumer durables stocks fell on profit taking after recent gains triggered on hopes rise in disposable income following widening of tax slabs in the Union Budget 2010-11 may boost sales. Titan Industries, Asian Star Company, Gitanjali Gems, Videocon Industries fell by between 0.49% to 3.78%.
India's largest drug maker by sales Ranbaxy Laboratories rose 0.46% extending gains for the second straight day. The company said on Friday it is planning to achieve $3 billion in consolidated turnover by 2012 as part of its medium-term business plan.
But other healthcare stocks fell. Sun Pharmaceutical Industries, Glenmark Pharmaceuticals, Pfizer, Cipla, Biocon and Novartis India fell by between 0.37% to 2.67%.
Infrastructure stocks fell on profit taking after recent gains triggered by the government's thrust on the infrastructure sector in the latest Budget. The Finance Minister has provided Rs 1.73 lakh crore for infrastructure development in 2010-2011, which accounts for over 46% of the total plan expenditure for the year. Gammon India, Punj Lloyd, Nagarjuna Construction Company, and Bharat Heavy Electricals fell by between 0.64% to 2.77%.
Cals Refineries clocked the highest volume of 2.75 crore shares on BSE. Shree Renuka Sugars (1 crore), Texmo Pipes (0.66 crore shares), Suzlon Energy (0.39 crore shares) and Birla Power Solutions (0.37 crore shares) were the other volume toppers in that order.
Man Infrastructure clocked the highest turnover of Rs 126.67 crore on BSE. Texmo Pipes (Rs 100.82 crore), Aban Offshore (Rs 96.95 crore), Shree Renuka Sugars (Rs 75.88 crore) and Infosys (Rs 72.6 crore) were the other turnover toppers in that order.
Jagran Prakashan
Investors with a two-year horizon can consider buying the shares of Jagran Prakashan, the publisher of Dainik Jagran, considering the growth in circulation and buoyant trends in advertisement revenues. This is driven by the paper's regional focus and the possibility of higher revenues through an enhanced thrust on colour ads.
At Rs 118, the Jagran stock trades at 17 times its likely per share earnings for 2010-11. This is at a discount to HT Media and Deccan Chronicle Holdings.
Jagran derives 60 per cent of its advertising revenues from regional advertisers and only the balance from national ones. Jagran has managed to grow volumes by 15 per cent this year in colour advertisements, which offer higher yields.
Colour ads now constitute 45 per cent of the overall advertising pie for the company and may go up further.
With a strong presence in the Hindi heartland across 11 States, the newspaper's rural reach is quite strong. The IRS R2 puts Dainik Jagran as the most read newspaper in the country.
The year 2008-09 saw the company suffer a setback in profits mainly due to higher newsprint prices, even as its advertising revenues held up reasonably.
However, signalling a revival in fortunes, results for the nine months ended December 2009 saw the company's revenues grow 13.4 per cent to Rs 705.6 crore, while net profits doubled to Rs 139.5 crore.
Newsprint costs
Growth in profits this year has also been driven by the 20 per cent fall in newsprint costs. Though newsprint costs are still considerably lower than the peak of $900/tonne in mid-2008, they have been firming up. The company forecasts another 10-15 per cent rise, from the current $510/tonne levels, over the next 12-18 months.
But the more important signal is that the company hopes to grow its advertising revenues by a healthy 15 per cent for the current fiscal.
The FMCG sector has ramped up its ad spends, several new telecom companies have launched operations and are looking to increase penetration, and automobile companies are aggressively increasing sales. These and other (economic situation insulated) sectors such as education are all set to contribute more to the advertising revenues.
Circulation revenues too have grown, albeit at a modest 7.7 per cent over the last year. Some of its competitors have given an annual free subscription offer in certain States that will end later this year. This is expected to lighten the competitive intensity, with a possible increase in cover prices.
via BL
Markets to open on flat to negative note; monthly inflation focused
Headlines for the day
RIL, IMG launch JV to build professional sports biz
JLR to source 30% of parts from low-cost countries
Orbit, HDIL high on Mumbai realty revival
Events for the day
Major corporate action
Ex-date for interim dividend of Neyveli Lignite Corporation
Ex-date for second interim dividend of Prism Cement
Ex-date for bonus issue of Pidilite Industries and Shree Renuka Sugars in the ratio of 1:1
Ex-date for bonus issue of Well Pack Papers & Containers in the ratio of 3:4
Ex-date for stock split from Rs10 to Re1 of Well Pack Papers & Containers
Pradip Overseas IPO closes today.
IL&FS Transportation Networks IPO closes today.
Monthly inflation to be out today
Tamboli Capital to be list today
Pre-market report
Global signals
On Friday, March 12, 2010 the European shares closed strong as positive retail sales data boosted sentiment, while banking shares gained as US Senate negotiations to overhaul financial regulation collapsed.
The US stocks ended on a flat note on Friday, after the mixed consumer and retail data that kept stocks near break-even.
In today's trade, Asian indices are trading in a mix trend. At the time of writing this report, SGX Nifty was trading 25 points lower.
Indian markets
Owing to the mixed and not so supportive global cues, the domestic markets are likely to open on a flat to negative note. The market is likely to remain lackluster and also expected to trade in range bound, as the index of industrial production (IIP) was not market friendly for the investors. However, the investors will be focused on the monthly inflation scheduled later today, which will set the trend of the markets.
Commodity cues
In the commodity space, the Crude oil prices posted loss, with the Nymex light crude oil for the April series down by $0.87 per barrel, whereas in the metals space, the Comex Gold and Comex Silver for the April and May series was down by $6.50 and $0.11 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On March 12, 2010, foreign institutional investors (FIIs) were the net buyers of the Indian stocks to the tune of Rs447 crore, whereas the domestic mutual funds, on March 11, 2010, were the net sellers of the stocks to the tune of Rs244.40 crore.
Persistent Systems Grey Market Premium
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| United Bank of | 60 to 66 | 8 to 9 |
| DQ Entertainment (Inter.) | 75 to 80 | 48 to 50 |
| NMDC (FPO) | 300 to 350 | 30 to 35 |
| Pradip Overseas | 100 to 110 | 18 to 20 |
| ILFS Transportation | 242 to 258 | 37 to 38 |
| Persistent Sys. | 290 to 310 | 22 to 25 |
Provogue
Investors with a long-term perspective can buy the stock of Provogue (India), a premium retailer in apparel and accessories. At Rs 51, the stock trades at 17.7 times trailing the four-quarter earnings at a discount to peers such as Shoppers' Stop and Trent. The stock trades at about 14 times estimated FY-11 per-share earnings.
Provogue has an established and significant brand recall in both menswear and women's wear. Backward integration in the manufacture of apparel has resulted in higher operating margins.
The improvement in sales from the discount chain Promart, and retail infrastructure development through a joint-venture are other positive factors for this retailer.
Premium play
Provogue retails formalwear and casuals for men and women. The product line also covers value-added offerings such as shoes, body-care products and accessories. Provogue commands sizeable brand recall. A marketing association with movies such as Wake Up Sid and Aladin further strengthen the reach of the brand.
Products are sold through a store network that combines exclusive outlets and larger department stores such as Globus and Lifestyle and other multi-brand outlets. Store count, as of October 2009, is 126 owned stores and 110 shop-in-shops. Plans are on to end FY-10 with an own-store count of 143, an additional 50 stores by end-2011 together calling for an investment of about Rs 43 crore.
Provogue's product range comes with a premium tag, targeted at youth. Provogue competes with brands such as Colour Plus. Premium retail has borne much of the brunt of the spending slowdown in the second half of 2008 and initial 2009. Sales have since picked up from the June 2009 quarter, albeit at a slower pace than value retail.
Provogue has managed strong growth in sales, with the December ‘09 quarter recording a 22 per cent sales growth over the same period last year.
Diversification
Though premium retail is picking up, value players hold an edge. Provogue has kicked off its value initiative through discount stores which offer a range of brands such as Peter England, John Players, Scullers and Jealous Jeans at discounted prices. Called Promart, the chain has two stores in Tier-II cities. Such discount offerings on branded apparel are similar to Pantaloon's Brand Factory, and is likely to draw in a larger customer base.
Revenue contribution of this venture is minimal given its limited reach. Therefore, while this format holds potential, step-up in contribution will depend on the company's ability to expand footprint.
Retail stores aside, Provogue has teamed up with the UK-based Liberty International to develop malls in smaller cities. The first mall in Aurangabad is set to open in 2010 with tenants such as HyperCity. In the pipeline are malls in smaller cities such as Nagpur, Indore and Jaipur.
The company is also well-placed on the funding side for both realty ventures and retail expansion with a debt-equity of 0.3 times, and an interest cover of 3.7 times. Provogue also exports fabric and dyestuff which form about a third of revenues.
Higher margins
Sales clocked a 32 per cent three-year CAGR with net profits managing a 31 per cent growth. Operating margins are at a strong 18.5 per cent for FY-09, up from the 17 per cent a year before.
However, even as debt-equity ratio is on the lower side, interest costs did eat into margins, and, together with depreciation have brought net margins down to 8.4 per cent for FY-09.
Still, operating and net margins are higher than most retail peers. For the nine-months ended December ‘09, operating margins slipped slightly to 17.5 per cent, though net margins held at 7.9 per cent.
via BL
ILFS Transportation IPO Review
Investors with a high-risk appetite can consider the initial public offer of road developer and operator, IL&FS Transportation Networks (IL&FS Transport). A portfolio of eight roads in operation and 11 more under development (totalling to 9400 km), a strong parent in IL&FS and a foreign acquisition which holds potential to offer superior technology for road operation and maintenance in the domestic market are key positives for the company.
Nevertheless, uncertainties linked to the long term and the differentiated nature of projects; high debt and risk of the foreign subsidiary pulling down margins make this investment risky. These risks may stand mitigated after two-three years, when new projects, once commercialised, could de-risk the existing portfolio.
The offer price of Rs 242-258 discounts the annualised consolidated per share earnings for FY-10 by 20-21 times, post-issue. Its price-to-book value (relevant here given that it holds roads as assets) of three is not way off valuations of international toll operators such as Abertis.
Despite holding a larger portfolio of roads, IL&FS Transport's valuation is a tad lower than its most comparable peer, IRB Infrastructure Developers and perhaps rightly so, given the superior profitability and return on equity of IRB at present. IL&FS Transport, nevertheless holds potential to more than double its revenues over the next couple of years, if it is able to successfully implement its projects on time.
Business and offer
The company is in the business of developing and operating roads by entering into long-term concession agreements. Apart from revenue received for construction, the group generates toll/annuity revenues and revenues from operation and maintenance of roads. For the half-year ended September 2009, the company's consolidated revenues were Rs 957 crore (Rs 1225 crore for FY-09) and net profits for the six months stood at Rs 118 crore (Rs 27 crore in FY-09).
This offer is a combination of fresh issue of shares and offer for sale. At the offer price band, the company (net of offer for sale) would raise Rs 589-596 crore. The offer proceeds would primarily be used to repay some of the debt.
Unique features
IL&FS Transport's primary business stands out for certain differentiated and ‘ahead of market' strategy adopted by it.
Toll auction: For one, the company, having been in the toll business ahead of peers, has moved up the learning curve, hurting itself initially on estimation of toll traffic and rates.
It has, therefore, adopted the toll auction model for some of its projects; wherein it earns a fixed sum in return for allowing the toll collector to enjoy revenues or bear the volatility in toll collections as the case may be.
While it may seem that the company is capping its toll revenue growth by entering into such arrangements, the short-term nature of such contracts (maximum of 12 months) allow the company to revert to own toll collection if they are found to be lucrative.
For instance, the company could on initial periods of sluggish traffic adopt this strategy and then shift to own toll collection once traffic picks up thusreducing the volatility present in toll projects but enjoying higher revenues if the toll project promises to be lucrative.
Acquisition: IL&FS Transport's profit margins crashed in FY-09 as a result of its acquisition of the Spanish road operator, Elsamex (in March 2008). In what was perhaps a distress sale, valued at Rs 77 crore, the Spanish company's high fixed costs and interest costs evidently dragged IL&FS Transport's net profit margins to a meagre 2.2 per cent in FY-09. The acquisition may, however, have to be viewed in the following context: One, Elsamex, although in distress, generates close to 40 per cent of IL&FS Transport's consolidated revenues and with experience of operating over 21,000 km of roads internationally, is clearly a player equipped with experience and technology.
Two, Elsamex's technology can be effectively used to operate and maintain Indian roads. Besides, a good number of the NHAI road contracts that were initially given on cash-contract basis and maintained by NHAI, may come up for O&M contracts, providing huge opportunity for companies such as IL&FS Transport. If so, the relatively lucrative Indian market could provide the much-needed profit margin boost to this Spanish company. Elsamex's presence in South American countries could also help combat the European slowdown.
Beneficial interest: The third strategy of IL&FS Transport is to hold ‘beneficial interest' in some projects by way of warrants and call options; the warrants entitled to earn dividends from projects; typically at a much later stage. Revenues from these projects would come to IL&FS Transport's books only on conversion of these instruments into shares. The conversion of these warrants can be expected over a three-year time-frame when some of the projects may break even.
However, this does pose risk to revenue visibility if conversion is delayed and dividend flow is insignificant. At least three of the 11 upcoming projects come under such beneficial holding, besides call options on three of the eight operating roads. However, since the parent holds much of the interestthe above risk may not be too high.
Financials
IL&FS Transport's revenues have grown six-fold over two years to FY-09 as a result of acquisitions and stake increases. Consolidated earnings though, halved over this period, merely on account of the acquisition.
The six-month earnings for FY-10 though have picked up pace and at Rs 118 crore, is over double that of earnings in FY-09. Operating profit margins for the half year, at 35 per cent, although not superior to IRB, is in line with industry average.
The company's debt equity ratio could come down to 1.5 times, post-issue, after repayment of debt. This leverage nevertheless appears high; the consoling factor though would be that all new projects, being SPVs would leverage in their independent capacity and the present debt level would provide some leeway to allow borrowing by IL&FS Transport for its equity contribution.
via BL
CEAT
With tyre makers riding on the back of a convincing revival in the automobiles industry, including the medium and heavy commercial vehicles (or the trucks and buses segment), investors can consider buying the stock of CEAT.
A strong brand presence in the aftermarket and high exposure to the trucks and buses (T&B) segment makes the scenario favourable for CEAT. Since both the segments are still in the early phase of recovery, investors can be confident of a robust sales and profits growth in the quarters to come.
Given the presence in the higher margin replacement market, CEAT may be able to pass on cost pressures such as the increasing rubber prices and the recent hike in excise duty, without having to take a deep cut in its operating margins.
Priced at Rs 146 and discounting its trailing four quarter earnings by just three times, CEAT is among the less expensive tyre manufactures.
Market presence
CEAT is a part of the RPG Group, with an annual production capacity of 7 million tyres every year. It commands 13 per cent market share in the entire tyre market and caters to a wide range of automotive segments.
The company derives over 84 per cent of its revenues from T&B, a key segment for all the tyre makers since it offers better margins. The passenger cars and OTR currently contribute to 14 per cent and 2 per cent respectively, to CEAT's revenues.
Thanks to a strong network of 34 regional offices and over 3,500 dealers, CEAT is among the leading brands in the replacement market and enjoys high brand recall in aftermarket space.
This apart, the company has approximately 100 exclusive CEAT Shoppe outlets for passenger cars and 96 exclusive CEAT HUBs for T& B. About 88 per cent of total revenues flow from the aftermarket sales.
Nascent recovery
CEAT's business revolves round high-revenue and high-margin pockets. While OEM tyre sales in the T&B segment have grown by 3 per cent in April-November 2009, demand in the replacement market has grown by 15.6 per cent in the same period. The T&B segment and aftermarket sales are still in the early recovery stages.
A stepped up allocation to state-run projects such as Jawaharlal Nehru National Urban Renewal Mission, may further boost the OEM and replacement demand in the T&B segment. Apart from domestic sales, exports contribute to 16 per cent of CEAT's total revenues.
Capacity expansion
To ease out capacity constraints and keep pace with the rapid growth in the automobiles industry, CEAT has taken up expansion plans in its existing facilities in Maharashtra (Bhandup and Nashik). But what may give the real fillip to CEAT's earnings is the ongoing Greenfield project in Halol (Gujarat).
With an investment size of Rs 700 crore and a production capacity of 145 tonnes per day, this plant will cater to the trucks, buses, LCV and passenger cars radial tyres market. The first phase of investment for Rs 500 crore has already been implemented, partly through internal accruals and debt; and Rs 200 crore will be invested in 2011- 12. The plant will become operational by October ‘10.
Financial comeback
CEAT managed 13 per cent CAGR sales growth until FY-08. This took a beating in FY-09, when the company expanded its sales by just 5 per cent and posted a net loss of Rs 16.1 crore that year.
Like other tyre makers, CEAT has also been swift to return to profits since the beginning of the current fiscal. For the nine months ended December ‘09, it registered a healthy 9 per cent growth in sales, while profits have expanded by over three-fold, when compared with the same period last year.
CEAT may be able to sustain top-line growth at the current pace, though it may see some near term moderation in the operating margins, due to sharp increase in raw material costs and partial roll-back of excise duty benefits.
Raw materials account for over 60 per cent of the total costs and its prices have risen by over 35 per cent since October ‘09.
However, its foothold in the replacement market may permit it to partially pass on the cost pressures to its customers. A positive demand situation, ramp up in production and a increase in sales volume, may be help CEAT make up for cost increases.
Market may open lower on weak Asian stocks; inflation data, advance tax figures awaited
The market may open lower tracking weak Asian stocks. The investors will keenly watch March quarter advance tax payment numbers of India Inc due today. The advance tax data will give investors an idea of companies' profits in the quarter that will be formally announced in April 2010. Advance tax collections for the January to March quarter is reportedly expected rise of 15-20% against the total collections for the corresponding period, last year. According to preliminary indications, the automobile and pharmaceutical sectors are expected to lead the list. However, banks, especially public sector and foreign banks, and oil marketing companies will be laggards due to their indifferent performance.
The government will announce the February 2010 inflation data by noon today which is expected to rise more than 9.5%. The wholesale price inflation (WPI) was at 8.56% in January, just above the Reserve Bank of India's (RBI) end-March projection of 8.5%.
Meanwhile, growth in the industrial output eased in January, after a record expansion in December. Finance Minister Pranab Mukherjee cited the data in parliament to argue that India's economic growth was not merely government-spending driven, and a senior aide said it backed his view that GDP would grow by more than 8.5% in the March quarter.
The data released on Friday showed industrial output grew 16.7% in January, below an upwardly revised 17.6% record growth in December. Between April and January, industrial output in Asia's third-largest economy expanded 9.6%. It grew 2.6% in the year to March 2009. Manufacturing output grew by an annual 17.9% in January, easing from 18.5 recorded in December.
The economy is seen expanding by more than 7.2% in the year to March 2010, with growth accelerating to 8.5% in 2010/11 and 9 % in 2011/12.
The Reserve Bank is expected to raise its key lending rate by as much as 50 basis points in April 2010 to tame inflation. The rate hike would come two months after Pranab Mukherjee raised factory gate taxes in the budget for 2010/11, the beginning of unwinding stimulus measures. Finance Minister Pranab Mukherjee said on Friday corrective economic steps have to be taken to tame inflation.
The government's plan to borrow $100 billion in the year to March 2011 has added to expectations market rates would rise and hurt industry.
Meanwhile, last week the $2 billion follow on public offer (FPO) of state-run NMDC was subscribed 1.25 times, besides the Rs 128 crore initial share sale offer of animation firm DQ Entertainment was subscribed 85 times.
Coming back to stocks, equities have witnessed a good post-Budget rally driven by sustained buying by foreign funds since the presentation of the Union Budget 2010-2011 on 26 February 2010. As per data from the stock exchanges, foreign institutional investors (FIIs) bought stocks worth a net Rs 7815.98 crore this month, till 11 March 2010.
The stock market has applauded the Union Budget 2010-2011 due to its thrust on infrastructure development, government's pledge to reduce fiscal deficit over the next three years, a smaller-than-expected 2% hike in excise duties, and reduction in taxes for individuals which will boost disposable income. The Finance Minister has assumed a modest GDP of about 8% and inflation of about 4.5% for 2010-2011.
Going ahead, the key triggers for the stock market are structural reforms such as decontrol of petrol and diesel prices, targeting of food subsidies, and financial sector reforms such as increase in foreign direct investment in insurance sector.
Asian stocks fell on Monday, 15 March 2010 as gold producers fell as prices of the precious metal declined. The key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea and Taiwan fell by between 0.15% to 0.86%. But, Singapore's Straits Times rose 0.09%.
The mixed consumer and retail data kept US stocks near break even on Friday 12 March 2010. The sales at U.S. retailers increased 0.3% in February, the Commerce Department said, compared with a 0.2% decline projected by economists. But a separate report showed consumer sentiment edged lower in early March, according to a survey that noted a less positive view of the job outlook. In other economic data, the Commerce Department said business inventories were unchanged in January, compared with a forecast for a 0.2% rise.
The Dow Jones industrial average gained 12.85 points, or 0.12%, to end at 10,624.69 on Friday. The Standard & Poor's 500 Index shed 0.25 point, or 0.02%, to 1,149.99. The Nasdaq Composite Index dipped 0.80 point, or 0.03%, to close at 2,367.66. For the week, the Dow gained 0.55%, the S&P 500 climbed 1% and the Nasdaq advanced 1.78%.
The US Federal Open Market Committee meeting on 16 March 2010 to discuss the monetary-policy strategy and to give a description of the economy is also keenly awaited.
Finance ministers from countries using the euro hope to agree on Monday on a way of providing heavily indebted Greece with financial aid, despite French and German doubts that a deal will be reached.
Closer home, the key benchmark indices recovered from the day's lows and closed flat after moving between the positive and negative terrain throughout the day on Friday, 12 March 2010. Higher European stocks helped a late recovery on the domestic bourses. The BSE 30-share Sensex was down 1.34 points or 0.01% to 17,166.52 on that day.
As per provisional figures on NSE. Foreign funds bought shares worth Rs 371.68 crore and domestic funds sold shares worth Rs 90.81 crore on Friday.
Daily News Roundup - March 15 2010
Government may shift subsidy burden to ONGC, OIL, GAIL. (BS)
M & M opens Rs50bn Chakan facility; facility to be used to make new portfolio of pick-ups, a still-to-be-launched SUV and a range of medium and heavy trucks made under association with Navistar. (BL)
ONGC is likely to invest up to US$20bn on its core upstream business over the next 10 years, to acquire oil and gas assets abroad. (BL)
JFE may pick up 14% stake in JSW Steel. (TOI)
Infosys could potentially face a tax liability of Rs1bn for alleged violations of SEZ rules at its Chandigarh SEZ. (FE)
The government is considering up to 10% equity dilution in Nalco. (TOI)
NMDC FPO issue subscribed 1.25x. (TOI)
JFE Holdings is unlikely to buy stake in JSW Steel as has been stated earlier by both the companies, but rather in a SPV under which their Bengal project is coming up. (DNA)
Tata Power plans to increase its wind and solar energy generation capacity to 2,000mw and 250mw. (ET)
Godrej Consumer has entered into an agreement to acquire Nigerian beauty brand Turafor ~Rs4-5bn. (BS)
TCS plans to finalise its wage and recruitment plans by April. (BS)
Reliance Industries, IMG Worldwide enteres into an equal joint venture to build a professional sports business in India. (BS)
DQ Entertainment fixes IPO price at Rs 80. (BS)
Ranbaxy eyes 80% rise in income by end of 2012. (BS)
Vishal Retail receives approval from lenders for inducting a strategic investor into the company to help it emerge from a Rs7.35bn debt pit. (BS)
Texas Pacific set to take over Vishal Retail assets. (BL)
Fortis Healthcare plans to use a short-term loan and money raised through a recent rights issue to fund its 23.9% stake buy in Singapore’s Parkway Holdings from PE firm TPG Capital for US$685mn. (BS)
Bharati Shipyard acquires an additional 3% in Great Offshore from its rival, ABG Shipyard, for Rs 537mn.
KSK Energy arm lowest bidder to supply 1010 MW power to GUVNL. (BS)
Eveready hikes prices of dry cell batteries. (BS)
Micro Technologies signs a strategic alliance with Brussels-based Advisers Global. (BS)
Triveni Engineering & Industries announces the demerger scheme of its steam turbine business. (BL)
Elder Pharmaceuticals is increasing its stake in its Bulgarian subsidiary Elder Biomeda to 61% from the current 51% for around US$12mn. (ET)
Zensar Technologies lines up US$100mn for another overseas buy. (ET)
Mercator Lines acquires a medium range tanker of 42,235 DWT, or dead weight tonnage. (ET)
Govt may pick up RBI's stake in Nabard next fiscal. (BS)
Foreign exchange reserves rose by US$74mn to US$278bn for the week ended March 5. (BL)
Tyre companies may hike prices again on rising input costs. (ET)
Capital goods, consumer durables lift January industrial growth to 16.7% yoy. (BL)
SC declines to interfere with the adverse findings of the Delhi HC against DoT and Union minister A Raja in allocation of 2G spectrum in 2007 by arbitrarily advancing the cut-off date for application from October 1 to September 25, 2007. (TOI)
Port traffic up 5.5% in April-Feb 2010. (TOI)
Mobile number portability, which will enable subscribers to retain their numbers while changing operators, is likely to be delayed at least by another three months till July. (TOI)
Hydro electricity capacity addition during the 11th Plan (2007-12) may be 34% lower than the target, according to a mid-term review. (DNA)
Monday morning exhaustion!
People choose the paths that grant them the greatest rewards for the least amount of effort.
Exhaustion seems to have got the better of the bulls and neither effort nor reward seems to be on the anvil. Stock indices continue to languish after a brief spurt post the Budget. The scenario is no different in global markets, though the US and Europe have held up well in the face of a few significant headwinds like weak labour market and debt issues.
Emerging markets like India and China have actually under-performed in the past few sessions. It remains to be seen when this trend changes. For now though, it looks like the market will remain in a state of flux for a while before there is any meaningful movement.
At the cost of being repetitive, we expect yet another dull opening and perhaps another trigger-hunting day. Advance tax numbers might lead to some shift in the undertone, though it will not make a big difference. Monthly inflation numbers will be another factor to watch out for. Fed policymakers will meet on Tuesday for a monthly review. All eyes and ears will be glued for the latest cues from the US central bankers.
FIIs were net buyers in the cash segment on Friday at Rs3.72bn on a provisional basis. Local funds were net sellers of Rs908.1mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers of Rs4.24bn. On Thursday, FIIs were net buyers of Rs4.47bn in the cash segment, as per SEBI figures. Mutual funds were net sellers at Rs2.44bn on the same day.
Kiri Dyes & Chemicals Ltd. will announce a Strategic Corporate initiative in Mumbai today - (acquisition of Dystar) and future expansion plans.
US stocks ended virtually unchanged on Friday after a report showed a surprise rise in retail sales. But, the Dow, Nasdaq and S&P 500 continued to struggle for direction below their 18-month highs.
The Dow Jones Industrial Average added 12 points or 0.1%, to 10,624.69. The S&P 500 index and the Nasdaq Composite were little changed at 1,149.99 and 2,367.66, respectively. Both ended the previous session at their highest levels in a year and a half.
The dollar fell versus the euro and gained against the yen.
US light crude oil for April delivery fell 87 cents to settle at $81.24 a barrel on the New York Mercantile Exchange.
COMEX gold for April delivery fell $6 to $1,102.20 per ounce.
Treasury prices rose, lowering the yield on the 10-year note to 3.71% from 3.72% late on Thursday.
Through Friday's close, the Dow, S&P 500 and Nasdaq have all risen in nine of the last 11 sessions.
It has been quiet the last few weeks, but the bias remains positive. US stocks might continue to drift higher over the next few weeks, but any gains will be capped by continued concerns about the economic outlook both in the US and overseas.
The Dow could touch as high as 11,000, but at that point it is likely to meet some resistance.
Retail sales rose 0.3% last month, according to a Commerce Department report released Friday morning. Sales rose a revised 0.1% in January and were expected to fall another 0.2% in February, according to a consensus of economists.
Sales, excluding autos rose 0.8% in February after rising 0.5% in January. Economists thought sales would rise 0.1%.
The University of Michigan consumer sentiment index fell to 72.5 in early March from 73.6 in the previous month. Economists thought sentiment would rise to 74.
Business inventories were unchanged in February, after falling 0.2% in the previous month. Economists thought inventories would rise 0.1%.
US President Barack Obama wants to nominate San Francisco Federal Reserve Bank president Janet Yellen to become the next Federal Reserve vice chairman. If nominated and confirmed, Yellen would replace Donald Kohn, who is retiring as of June 23rd.
The collapse of Lehman Brothers was largely attributable to actions by its executives and auditor, according to a report by a US bankruptcy court.
European shares ended a choppy week with gains on Friday, after better-than-expected industrial production data.
The Stoxx 600 Europe index rose 0.4% to 258.52, the second day of gains in five sessions for the equity gauge. Over the week the index added 0.6%. The year-to-date gains for the index now stand at 1.8% - a small portion of its 12-month advance of 55%.
Industrial production from the 16-nation euro zone rose 1.7% in January and US retail sales climbed 0.3% in February.
Germany's DAX index rose 0.3% to 5,945.11 and the UK's FTSE 100 index was up 0.2% at 5,625.65, while the French CAC-40 index finished flat at 3,927.40.
Benchmark indices ended on a flat note for yet another trading session. After opening with positive gains, markets gradually slipped throughout the day. Volatility and volumes both were diminishing.
Despite strong FII inflow, the NSE Nifty was unable to surge past the 5190 levels throughout the week which is the crucial resistance level for the index. FIIs bought stocks worth Rs44.48bn in the past three days on the other hand DIIs were net sellers to the tune of Rs6.9bn in the past three days.
Breath was weak on the BSE for the third straight day. Out of total 2927 stocks, 1810 declined against 1027 advances and 90 remained unchanged.
The BSE Sensex ended flat at 17,166 after touching a high of 17,245 and a low of 17,127. The NSE Nifty ended unchanged at 5,137.
In Asia, the Nikkei in Japan ended with gains, adding 0.8%, while Australia's S&P/ASX ended flat. Shanghai SE Composite ended flat and Hang Seng index in Hong Kong edged was unchanged.
In Europe, stocks were in positive terrain. The DAX in Germany was up 0.5%, the CAC 40 index in France was up 0.5% and the FTSE in the UK was up 0.4%.
Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, losing 0.8%, followed by the Capital Goods index that was down 0.6% and the BSE Power index was down 0.5%. Even, the BSE Mid-Cap index was down 0.2% and BSE Small-Cap index was down 0.4%.
Among the gainers were BSE Metal index up 0.6% and BSE Oil & gas index up 0.4%.
Outside the frontline indices, the big gainers in the broader market were Fortis Health, Cairn, Ackruti City and Allahabad Bank. On the other hand, losers included Renuka Sugars, Balrampur Chini, M&M Fin and OBC.
On a weekly basis, Indian markets underperformed the global peers. Benchmark indices remained in a very narrow range through out the week with the Nifty ranging between the 5090-5160 levels. Volatility and volumes were at lower levels.
However, what was seen is that the FIIs continued to be net buyers during the week, making purchases to the tune of Rs44.48bn in the past three days. The BSE Sensex hit an intra-week high of 17,244.54 and low of 17,027 while, the NSE Nifty hit an intra-week high of 5,158 and low of 5,092.
Subscribe to:
Posts (Atom)