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Friday, October 15, 2010
Weekly Newsletter - Oct 15 2010
The big story for the coming week will of course be the mega Coal India IPO which opens on Monday. Meanwhile, the volatile consolidation phase continues in the Indian market. Investors seem to be treading cautiously given that we are in the midst of the earnings season. Also, some cooling was expected as last month's rally had left the market a little overheated. So, after five straight weeks of advance, which lifted the key indices near their all-time highs, we have seen a minor pullback over the last two weeks. Still, the bulls almost pulled off new highs in the middle of this week when the Sensex soared by nearly 500 points only to retreat in the next two sessions.
Coal India IPO opens on Oct. 18
The price band for the Coal India Ltd. IPO has been fixed at Rs225-245 a share, Union Coal Minister Sriprakash Jaiswal said in New Delhi. The Government could raise as much as US$3.5bn at this price. The Government is selling roughly 631.6 million Coal India shares, or 10% of the company, in what is touted to be the largest share sale in the country. The IPO opens on Oct. 18 and closes on Oct. 21. Coal India will list on November 4. Morgan Stanley, Citigroup, Kotak Mahindra Capital, Enam Securities, Deutsche Bank, and Bank of America-Merrill Lynch are the lead managers for the IPO. Employees of Coal India and the retail investors will get a 5% discount.
IT stocks drag Nifty below 6100
Major headlines
Inflation at 8.62% in the September
Food inflation inches up to 16.37%
Infosys Technologies' consolidated Q2 net profit jumps 13% yoy; the stock closes 3.39% lower
Nifty October 2010 futures at premium
Turnover declines
Nifty October 2010 futures were at 6,081.05, at a premium of 18.40 points over spot closing of 6,062.65. Turnover in NSE's futures & options (F&O) segment declined to Rs 1,37,903.25 crore from Rs 1,39,282.17 crore on Thursday, 14 October 2010.
Asian stocks edge lower ahead of weekends
Selling pressures evident in most of the markets expect China
The Asian market moved slightly lower today, giving up some of their gains recorded earlier in the week as the US dollar garnered some gains and the weak unemployment data from the US hurt risk appetite of the global investors. The US markets ended nominally in red last night but were off their five-month highs. Initial claims for unemployment aid rose by 13,000 to a seasonally adjusted 462,000, the U.S. Labor Department said yesterday and the markets summed it up as an indication that high unemployment will continue to drag on an already weak recovery in the world's largest economy.
BSE Bulk Deals to Watch - Oct 15 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
15/10/2010 532664 Amar Remedies MORGAN STANLEY MAURITIUS COMPANY LIMITED B 254587 129.46
15/10/2010 532995 Avon Corp DELIGHT FINANCIAL ADVISOR PVT LTD B 646559 5.05
NSE Bulk Deals to Watch - Oct 15 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
15-OCT-2010,AMAR,Amar Remedies Limited,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,400413,129.46,-
15-OCT-2010,BEDMUTHA,Bedmutha Indust Ltd,AANIR SHARES SERVICES PRIVATE LIMITED,BUY,117000,215.00,-
IT stocks lead 1.8% Sensex slide
Profit booking after a recent solid surge which had propelled the key benchmark indices to 33-months highs on Thursday, 14 October 2010, pulled the market sharply lower today, 15 October 2010. The BSE 30-share Sensex lost 372.59 points or 1.82% to 20,125.05, off 453.40 points from the day's high and up 34.87 points from the day's low. The Sensex had lost 0.92% on Thursday, 14 October 2010, retracing from 33-month high reached in early trade on that day.
Market likely to open negative
Indian equities are likely to open negative on Friday, Oct. 15, 2010. SGX Nifty is trading at 6,193 (8.00 am), flat from previous close of 6,193.
Asian stocks fell, sending the regional equity benchmark index lower from yesterday`s two-year high, after US initial jobless claims unexpectedly increased, sparking concern about the strength of the world`s biggest economy. Japanese benchmark index Nikkei 225 fell 69.31 points, or 0.72%, to trade at 9,514.20.
Latest Grey Market Premiums - Oct 15 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Commercial Engg. | 127 (Upper) | + / - 3 to 5 |
| Oberoi Realty | 260 (Upper) | 6 to 8 |
| B.S. Trans | 248 to 257 | Discount |
| Prestige Estate | 172 to 183 | Discount |
| Gyscoal Alloy | 65 to 71 | 10 to 12 |
| Coal India | 225 to 245 | 25 to 27 |
Flat start on the cards; Infosys results eyed
Headlines for the day:
R-Infra raises Rs7,000 crore for Mumbai Metro project
L&T Infra plans Rs700 crore infrastructure bond issue
Honda Motor prepares to exit Hero Honda
Infosys earnings to dictate market trend
The market is likely to see a flat opening amid mixed global cues. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicate that the Nifty could gain 7 points at the opening bell. IT bellwether Infosys reports its Q2 September 2010 results today.
Daily News Roundup - Oct 15 2010
Reliance Infra ties-up Rs70bn debt for Mumbai metro project (ET)
L&T Infra Finance to raise upto Rs7bn (ET)
Bharti to outsource customer support for African operations (ET)
HUL plans Bharat packs for rural markets (BL)
Sensex slides from 33-month high
Just when we thought that the Indian markets are all set to breach previous all time highs, bears were back on Dalal Street. Benchmark stock indices started off on an impressive note, but were unable to hold on to their early gains as Capital Goods, Oil & Gas and Power stocks witnessed some profit booking.
Currency wars & Infosys results
However beautiful the strategy, you should occasionally look at the results. - Winston Churchill.
It’s a war out there as far as the currencies are concerned. South Korea and China are sparring with each other on the sensitive subject. Singapore has taken steps to boost its currency to curb inflation. Brazil, South Korea and Thailand have all announced measures to restrain surging overseas inflows.
Prestige Estates Projects IPO Subscription Details
Qualified Institutional Buyers (QIBs) 4.32
Non Institutional Investors 0.24
Retail Individual Investors (RIIs) 0.08
Employee Reservation 0.24
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