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Monday, July 26, 2010
Interest rate sensitive stocks slide ahead of RBI's policy review; Maruti tanks
The key benchmark indices edged lower as European stocks moved off highs and as US index futures fell. Closer home, caution prevailed ahead of the central bank's quarterly policy review on Tuesday, 27 July 2010 and as investors awaited key first quarter results. The first quarter results of Larsen & Toubro (L&T), Reliance Industries (RIL) and Hindustan Unilever (HUL) are due on Tuesday 27 July 2010. The BSE Sensex settled a tad above the psychological 18,000 mark after falling below that mark for a brief period in late trade.
Sensex slips as auto stocks crash
Today's major news
Fortis Healthcare exits race for Parkway; the stock ends 2.93% up
Dabur India's Q1 net profit up 11% yoy; the stock closes 3.73% lower
Sterlite Industries Q1 net profit soars 272% yoy; the stock ends 0.20% higher
BSE Bulk Deals to Watch - July 26 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
26/7/2010 532975 Aishwarya Tele PARESHRAMJIBHAI CHAUHAN B 200000 33.70
26/7/2010 530355 Asian Oilfield SHAKTIMAN STEEL CASTING PVT LTD. B 183948 67.90
26/7/2010 530355 Asian Oilfield SARVAPRATHAM INVESTMENT LIMITED S 183948 67.90
NSE Bulk Deals to Watch - July 26 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
26-JUL-2010,ATLASCYCLE,Atlas Cycles (Haryana) Lt,ANGEL GLOBAL CAPITAL PRIVATE LIMITED,BUY,23006,240.27,-
26-JUL-2010,ATLASCYCLE,Atlas Cycles (Haryana) Lt,BP FINTRADE PRIVATE LIMITED,BUY,30317,238.20,-
26-JUL-2010,ATLASCYCLE,Atlas Cycles (Haryana) Lt,CNB FINWIZ LIMITED,BUY,54281,241.57,-
Asian stocks mostly up
Gains extend following the stress test results of European banks
Asian stocks mostly rose today; following Wall Street higher as risk appetite remained firm following the not so bad stress test results of European banks. With only 7 of the total 91 banks having failing the test, the US markets had raced up ahead of the weekends. This trickled into markets in Asia right from the start and ideas that strong earnings season would continue this week also fueled some optimism in the regional benchmarks. However, the commodity prices appeared to be softening after runaway gains in the last few days and DOW futures also slipped in red in the electronic trading, making it quite clear that some profit selling could be seen in the markets after last week's steep climb.
Maruti, Indian Bank July 2010 futures at premium
Turnover declines
Nifty July 2010 futures were near spot price at 5,418.95 compared to spot closing of 5,418.60. Turnover in NSE's futures & options (F&O) segment was Rs 96,915.68 crore, lower than Rs 1,04,681.58 crore on Friday, 23 July 2010.
Grey Market - SKS Microfinance, Prakash Steelage
| Aster Silicates Ltd. | 118 | 5 to 6 |
| Midfield Industries Ltd. | 133 | 17 to 18.50 |
| Engineers | 270 to 290 | -- |
| SKS Micro Finance | 850 to 985 | 47 to 48 |
| Prakash Steelage | 100 to 110 | 5 to 5.50 |
Market may edge higher as most European banks pass stress tests
Gains in Asian stocks may lift the domestic bourses at the onset of the trading session. Volatility may rise as traders rollover positions in derivatives segment from July 2010 series to the August 2010 series ahead of the expiry of the near-month July 2010 contracts on Thursday, 29 July 2010. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicated that the Nifty could rise 12.50 points at the opening bell. Car major Maruti Suzuki will be under selling pressure on poor Q1 June 2010 results.
Markets set to start strong
Headlines for the day:
SAIL's Rs16,000-cr FPO may not come this year
HPCL to make own ethanol for petro-blending
TVS eyes UP scooter market
Daily News Roundup - July 26 2010
SBI has raised US$1bn through a five-year senior unsecured bond issue at a fixed coupon rate of 4.5%.(BL)
Vodafone Group Plc might sell its indirect minority equity stake of 4.39% in Bharti Airtel, as part of a plan to get out of the group’s smaller investments in various companies across the world. (BS)
Tata Motors will consider a US$550mn sponsored overseas issue for its shares with differential voting rights. (ET)
ITC plans to invest Rs 230bn across sectors such as FMCG, hotels, paper and packaging over the next few years. (BL)
DLF is buying out the property arm of Dubai World, its foreign partner in the 50:50 joint venture to make Bidadi Knowledge City. (ET)
Dr Reddy’s Labs neither has any intention to offload stake in its domestic formulations business nor will it look at selling its German subsidiary Betapharm. (ET)
JSW Energy has initiated the process to borrow over Rs80bn to finance its forthcoming power projects in Chhattisgarh and Himachal Pradesh. (ET)
Wal-Mart may have to change the structure of its partnership with Bharti group due to a new rule governing wholesale trade. (ET)
TCS £600mn pension administration contract is potentially at risk of renegotiation due to cuts in UK’s IT budget. (ET)
Tata Steel approved a preferential issue of shares-cum warrants to parent company Tata Sons in a transaction worth about Rs160bn. This will increase the shareholding of Tata Sons in Tata Steel by 0.3% to about 31.33%. (ET)
SAIL's 20% share sale plan, which aims to generate up to Rs160bn may not happen this year due to certain regulatory hurdles. (BS)
Jindal Saw is in talks with North Clermont Coal, Australia, to buy up to 50% stake in one of its coal mine. (DNA)
CESC achieved financial closure for its proposed 600 MW project at Haldia.(BL)
Alstom bags two contracts, worth €450mn in total from GVK Industries to build units of the new Jegurupadu-III combined cycle power plant in East Godavari district of Andhra Pradesh. (BL)
Hanung Toys plans to come out with Rs2.5bn QIP issue in the next couple of weeks. (BL)
Legrand is acquiring switchgear business of Indo Asian Fusegear for Rs6bn. (ET)
Ion Exchange has restructured its business operations and plans to diversify into biomass power generation in a joint venture with Belgium-based environmental technology major, Waterleau. (BS)
Strides Arcolab shareholders have approved increasing the borrowing limit of the company by Rs10bn to Rs25bn. (BS)
Mahindra Finance it expects regulatory approval for entering into the asset management business during the fiscal. (BS)
Air India unveiled turnaround plan that envisages the airline reaching operational break-even and wiping out Rs140bn of accumulated losses. (Mint)
Government today set Rs270-290 as the price band for the follow-on public offering of Engineers India. (DNA)
Goenka Diamond plans to scale up its operations and has earmarked an investment of upto Rs1bn to fuel its growth. (ET)
Uflex plans to raise around Rs2.5bn through a rights issue by September to support expansion plans and repay loans. (ET)
Oberois, the promoters may up stake in EIH to counter hostile bid. (BS)
The government set Rs270-290 as the price band for the follow-on public offer of Engineers India. (BS)
Foreign exchange reserves rose by US$2.5bn to US$282bn for the week ending July 16. (BL)
The Prime Minister's Economic Advisory Council (PMEAC) has projected capital inflows of about US$73bn for 2010-11, much higher than inflows in 2009-10. (BL)
The PMEAC pegged the farm sector growth rate at 4.5% for the FY 2010-11. (BS)
The Union law ministry has suggested a penalty on telecom service providers (licensees) equivalent to 100% of their contract value if any equipment bought and installed by them is found to have any spyware or malware. (BS)
The government approved 18 foreign direct investment proposals worth ~Rs22.45bn. (BS)
7 of Europe’s 91 largest banks could not survive the bank stress tests. These include a Munich-based bank, one in Greece and five Spanish savings banks. (BS)
While pegging the economic growth at a conservative 8.5% for this fiscal, the Prime Minister’ Economic Advisory Council in its economic outlook report for 2010-11 pitched for tightening of the monetary and fiscal policies to check rising inflation. (TOI)
Sensex ekes out gains…ends above 18k
Indian markets ended on a flat note erasing almost all the early gains. Bulls extended its upswing in the opening trades and entered in a narrow trading band. Benchmark indices were unable to hold on despite firm global cues. Shares of Wipro which gained after the company announced its Q1 results also ended lower by a percent.
Earning reports overpower cautionary statements at Wall Street
Dow and Nasdaq manage to erase all their year to date losses
US stocks registered strong weekly gains for the week that ended on Friday, 23 July 2010. Mixed earning reports from big companies overpowered Federal Reserve Chairman Ben Bernanke's cautious statements regarding the recovery of US economy. With this week's gains, Dow and Nasdaq erased all their year to date losses and are back in the unchanged territory mark for the year.
Crude ends lower
Prices drop as oil market gets no clue from bank stress results
Crude oil prices ended lower on Friday, 23 July 2010 at Nymex. Prices dropped despite quite a few better than expected earning reports. Steady dollar and mixed results from European bank stress forum provided no clear direction to the oil prices.
Bullion metals turn little pale
Prices stay steady on a weekly basis
Bullion metal prices ended little lower on Friday, 23 July 2010 at Comex. Prices remained somewhat near the unchanged mark despite quite a few better than expected earning reports. Even results from the European bank-stress tests failed to spur any safe-haven buying in bullion metals. The dollar also remained steady on Friday.
Copper registers strong weekly gains
Prices erase earlier losses at LME to end higher for fifth straight day
Copper prices ended higher for fifth straight day at Comex on Friday, 23 July 2010. Steady dollar, better than expected report on the housing front during the week and strong earning reports led to higher metal prices on Friday.
Punj Lloyd
Investors with medium-term perspective can consider selling the stock of infrastructure player Punj Lloyd (Rs 134.6). The company operates in the oil and gas pipeline sector besides building roads and civil structure.
GST - FAQ
HOW WILL THE GST WORK?
The GST is an indirect tax that would replace existing levies such as excise duty, service tax, and value-added tax (VAT).
Both the states and the federal government would impose the tax on almost all goods and services produced in India or imported. Exports would not be subject to GST.
For the first two years of operation, the proposal is for two rates both at the central and state levels, converging to a single rate in the third year.
Producers would receive credits for tax paid earlier, which would eliminate multiple taxation on the same product or service.
Direct taxes, such as income tax, corporate tax and capital gains tax would not be affected.
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