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Friday, July 02, 2010
RBI raises repo, reverse repo rates by 25 bps
The Reserve Bank of India (RBI) today, July 2 raised the short-term lending and borrowing rates by 25 basis points with immediate effect, a move which it aims will help contain inflation.
The move comes weeks ahead of the scheduled policy review by RBI on July 27 and a day after the government announced that food inflation dipped by about a quarter to about 12%.
The central bank raised both, repo and reverse repo rates (the rates at which the RBI lends and borrows short-term funds from commercial banks), by 25 basis points to 5.50 per cent and 4%, respectively.
The move would raise cost of funds for banks and temper demand for loans, and in turn, consumer spending.
BSE Bulk Deals to Watch - July 2 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
2/7/2010 517356 ACI Infocom MANOJ P LUNKAR B 100000 26.25
2/7/2010 517356 ACI Infocom DIVYA ALOK GUPTA S 150000 26.26
2/7/2010 530901 ACIL Cot Inds ABHIJIT RAMESH MOHOD B 76137 38.78
2/7/2010 530713 Ajel Info VOLGA INTERNATIONAL LIMITED B 50833 27.83
NSE Bulk Deals to Watch - July 2 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
02-JUL-2010,APTECHT,Aptech Limited,THE ROYAL BANK OF SCOTLAND N.V.,BUY,450000,135.63,-
02-JUL-2010,BHARATGEAR,Bharat Gears Ltd,EXECUTE MERCANTILE PVT LTD,BUY,50000,69.76,-
02-JUL-2010,BSL,BSL Ltd,SAR AUTO PRODUCTS LIMITED,BUY,85000,41.57,-
Technofab Engineering IPO subscribed 12.2 times
Gets bids for 3.64 crore shares
The initial public offer (IPO) of Technofab Engineering has received strong investor response. The issue was subscribed 12.2 times. The IPO got bids for 3.64 crore shares, compared with 29.9 lakh shares on offer.
Hindustan Media Ventures IPO Analysis
Hindustan Media Ventures (HMVL) is promoted by the HT Media, an integrated multimedia company. HMVL publishes and prints ‘Hindustan', the third largest daily newspaper in India by readership (9.9 million readers, according to IRS, Q1 2010). The company also publishes two Hindi magazines, ‘Nandan‘, a children‘s magazine, and ‘Kadambini‘, a general interest magazine. In addition to its Hindi print publications, it also operates the website, www.livehindustan.com, which focuses on providing news in Hindi with regional content. Further, HMVL recently forayed into event management and customized event solutions.
Metal shares slide, PSU OMCs rally
Indian stocks swung between gains and losses almost every alternate day, last week, largely taking cues from volatile global equities. The Sensex declined in three out of the five trading sessions in the week ended 2 July 2010. Metal stocks fell on weak Chinese economic data whereas IT stocks fell on dismal US economic data. Bank stocks declined on rate hike worries.
Q1 June 2010 results, monsoon progress hold key
The next major trigger for the market is Q1 June 2010 results of India Inc, which will start trickling in from the second week of July 2010. Advance tax collections for the first quarter of the current financial year point to a strong growth in corporate sector profits. Advance tax payments by companies during the April-June quarter account for 15% of the total advance tax payable in the fiscal year.
Market declines for the second straight day
The key benchmark indices fell for the second straight day as investors resorted to profit taking ahead of the weekend. Asian and European stocks rose ahead of key US employment data due out later in the global day. The market breadth was even. Earlier in the day the breadth was strong. Banking, realty and metal stocks fell. Auto stocks were mixed.
Precious metals turn extremely pale
Prices register big one-day drop in percentage terms in a long time
Bullion metal prices ended substantially lower on Thursday, 01 July 2010 at Comex. Prices shed gains in tandem with US equities and other commodities across the board. Both gold and silver registered big one-day percentage drops in a long time.
Crude plunges
Weak set of economic data weighs on crude
Crude oil prices ended substantially lower on Thursday, 01 July 2010 at Nymex. Prices fell in tandem with US stocks due to weak set of economic data that hit the wires at Wall Street today.
Grey Market Premiums - Aster Silicates, Technofab Engineering, Hindustan Media Ventures
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Aster Silicates Ltd. | 112 to 118 | 8 to 8.50 |
| Technofab Engineering | 230 to 240 | 12 to 13 |
| | 162 to 175 | 6.5 to 7 |
Markets expect flat opening
Headlines for the day:
Tata Motors overtakes Hyundai in June
Axis, Fortis promoters to fund Parkway bid
RCom buys India's largest cable firm
Market may edge higher on firm Asian stocks; RCom eyed
The market may edge higher in early trade as most of Asian stocks rose. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicated that the Nifty could gain 6 points at the opening bell.
In stock specific action, Reliance Communications after market hours on Thursday announced the acquisition of one of India's largest cable service provider, Digicable, in a cashless, all-stock deal. Reliance will demerge its direct-to-home (DTH) and IPTV business, now under the Reliance BigTV brand and the domestic retail broadband business of Reliance Communications, into a new entity along with the newly acquired Digicable. The new entity will be called Reliance DigiCom and Digicable will be given a stake in this entity.
Daily News Roundup - July 2 2010
ONGC Board has in-principle approved the cluster development of four marginal fields in the Western offshore. (BL)
After more than two years, Tata Motors has dislodged Korea’s Hyundai Motors in India from the second spot in monthly domestic passenger vehicle sales. (BS)
RCom today announced acquisition of one of India’s largest cable service providers, Digicable, in a cashless all-stock deal. (BS)
Tata Power to raise Rs14bn via coal SPVs. (FE)
HDFC Bank is now looking for a south-based bank for its next phase of merger. (FE)
Raymond’s plan to utilise 125 acres of land at its Thane plant for residential and commercial purposes has met with strong objection from the Maharashtra Government. (BS)
ITC is setting up another unit at its existing paper mill in Bhadrachalam at a cost of Rs10bn. (BS)
The GMR Group has decided to keep on hold an agreement on distribution of promoters stakes among family members. (ET)
The Government approves $5.25 per mmBtu for ONGC gas. (ET)
Axis Bank targets 12,000 villages in five years time under financial inclusion plan. (ET)
Sterlite Energy, the flagship company of Vedanta Resources, has ignited the first unit (600 MW) of its 2,400MW power plant at Jharsuguda. (BS)
The Blackstone Group has secured 12.5% stake for Rs2.8bn in Monnet Power, a 100% subsidiary of Monnet Ispat and Energy. (BS)
BK Birla's daughter, Manjushree Khaitan, to be Kesoram vice-chairman. (BS)
Kesoram Industries to invest Rs11.3bn on cement capacity expansion and additional power generation. (BL)
SpiceJet may get an expatriate CEO after Sanjay Aggarwal quit the post. (BS)
MRPL, a subsidiary of ONGC, will revisit its fuel retail business plans as the government has decontrolled petrol prices. (BS)
Kinetic ties-p with Italian company for engineering services for infra projects. (BL)
Mangalam Cement studying Mangalam Timber's merger proposal. (BL)
Tata Chemicals is planning to invest Rs35-40bn to double urea production capacity at its Babrala facility in Uttar Pradesh. (BL)
Puravankara Projects announced a new project, Purva Skywood, in Bangalore that would see development of 1.25mn sqft of residential space spread over 12.5 acres. (BL)
Federal Bank to open 31 new branches in Kerala this week. (BL)
Vijaya Bank has applied to the Government of India for Tier-I capital. (BL)
Food inflation declined by a significant 4% to 12.9% for the week ended June 19 due to a high base effect and timely arrival of monsoon rains. (BS)
FDI in DTH raised to 74% and FM radio to 26%. (FE)
Department of industrial policy & promotion (DIPP) has initiated an exercise to tweak the foreign direct investment policy for wholesale trading. (ET)
SEBI has made it tougher for non–finance businesses, which has less than five-year of financial services experience, not permitting it to own stake in an asset management company. (ET)
May export surges to US$16.1bn, up 35.1% yoy. (BS)
Maharashtra Government is considering imposition of betterment charge and service tax on developers of residential and commercial complexes adjacent to the mega-infrastructure projects lined up in Mumbai. (BS)
The Centre’s fiscal deficit stood at Rs1lakh crore during April-May 2010, constituting over a fourth of the budget estimate for the entire year. (BS)
Funds raised by corporate India through syndicated loans and equity issuances have more than trebled to about Rs578bn for the half-year ended June 2010. (BL)
The European sovereign debt crisis will cause companies and governments in the region to curtail IT spending for 2010, according to Gartner and Forrester. (BL)
On reverse gear…Sensex slumps over a ton
The Indian markets ended in the red as weakness in the manufacturing PMI data and monthly auto sales overshadowed another strong month of trade data. Sentiment also remained subdued on account of downbeat global economic reports.
Bulls may dance!
Life may not be the party we hoped for, but while we're here we should dance. - Anonymous.
The market may have tumbled but it was not as bad as it appeared; the market breadth did not collapse and the decline came on lower volume. Also, outflows from the foreign funds were only marginal in the cash segment. Given that backdrop, we expect the market to resume its ascent today after a slow start. Most Asian markets, barring Hong Kong, are trading in the green. Markets in Hong Kong were shut on Thursday.
Market may see flat-to-negative opening
Indian equities are likely to open negative on Friday, Jul. 2, 2010. SGX Nifty is trading at 5,249 (7.50 am), 9.50 points lower than Thursday closing of 5,258.5.
Asian stocks fluctuated as U.S. reports on manufacturing, employment and home sales fueled concerns about economic growth and damped an early rally led by mining companies. Japanese benchmark index Nikkei 225 fell 5.79 points, or 0.06%, to trade at 9,185.81.
Neyveli Lignite
We recommend a buy in the stock of Neyveli Lignite Corporation from a short-term perspective. After recording a 52-week high at Rs 177 on January 19, the stock was on a medium-term downtrend until it found support around Rs 140 in late May. The level Rs 140 is a significant long-term support for the stock. Subsequently, the stock bounced up and has been on a short-term uptrend. Moreover, the stock appears to have resumed its long-term uptrend that has been in place since its October 2008 low of Rs 44.5. The stock decisively breached through its moving average compression around Rs 147 in early June. It is trading well above its 21 and 50-day moving averages. The stock's 2.5 per cent jump with above average volume on July 1 has reinforced the short-term bullish momentum. The daily relative strength index is featuring in the bullish zone and weekly RSI is heading towards this zone in the neutral region. The weekly price rate of change indicator has entered the positive territory implying that buying interest has resumed. Our short-term outlook on the stock is positive. We expect it to move up until it hits our price target of Rs 166 or Rs 170 in the approaching sessions. Short-term traders can buy the stock with stop-loss at Rs 154.
via BL
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