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Tuesday, May 31, 2011
Market may gain on firm Asian stocks;Q4 GDP data in focus
The market may edge higher tracking firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 16 points at the opening bell. Foreign institutional investors (FIIs) bought shares worth Rs 253.48 crore and domestic funds sold shares worth Rs 50.39 crore on Monday, 30 May 2011, as per provisional figures released by the stock exchanges.
The government unveils Q4 March 2011 GDP data today, 31 May 2011. The data could provide cues on the likely monetary policy stance of the central bank at the mid-June 2011 review. The recent data showing gain in food prices in mid-May 2011 will increase pressure on the Reserve Bank of India (RBI) to raise policy rates when it undertakes mid-quarter monetary policy review on 16 June 2011.
Gap-up opening likely; Quarterly GDP data eyed
Markets may begin the last session of the month in the green following positive Asian indices. India’s fourth quarterly gross domestic product (GDP) numbers will be released today.
Headlines for the day:
ONGC to move court on Rajasthan block royalty
Hindalco to start Utkal project before June 2012
HPL to invest Rs4,000 cr on eight projects in WB
Daily News Roundup - May 31 2011
Japan’s Kokuyo will buy 50.3% stake in office stationary maker Camlin for over Rs3.65bn in three tranches, after which the Indian firm will be converted into a joint venture. (ET)
ONGC is heading for a legal battle over royalty payments for India’s biggest oilfield in Rajasthan irrespective of the outcome of Vedanta Resources’ US$9.6bn bid to buy Cairn India that operates the field. (ET)
Infosys said its brand value climbed 12% during FY11 to become nearly US$8.87bn, despite ongoing allegations of visa misuse in the US and its founder chairman NR Narayanamurthy set to step down this August. (ET)
Sensex ends flat amid lackluster session
The Indian stock markets started off the week on a quite note. It was another day of lackluster trading; the NSE Nifty was stuck in a 20 points narrow trading range and was unable to find any specific direction throughout the day ahead of the quarterly GDP numbers to be announced tomorrow.
Market sentiment got a boost after reports stated that monsoon hit Kerala two days ahead of schedule. Besides the GDP data, monthly auto sales, manufacturing PMI and exports figures during the course of the week also would play important market determinants.
GDP report to show direction
The great thing in the world is not so much where we stand, as in what direction we are moving. - Oliver Wendell Holmes.
Earnings season has come and gone. The less said the better. Market players will now focus on economic data and its impact on the RBI’s policy stance. In that context, the Q4 and FY11 GDP report due out today will be an important event. Consensus expectation is for 8.2% expansion in Q4 GDP. The Government has estimated a GDP growth of 8.6% for FY11.
BSE Bulk Deals to Watch - May 30 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
30/5/2011 533412 AANJANEYA RKSV SECURITIES INDIA PRIVATE LIMITED B 205313 308.65
30/5/2011 533412 AANJANEYA VIJETA BROKING INDIA PRIVATE LIMITED B 94975 313.89
30/5/2011 533412 AANJANEYA DEEPAK SHATILAL CHHEDA B 68922 310.91
NSE Bulk Deals to Watch - May 30 2011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
30-MAY-2011,AANJANEYA,Aanjaneya Lifecare Ltd,ALEX PUTHENCHIRA JOHNSON,BUY,65000,312.96,-
30-MAY-2011,AANJANEYA,Aanjaneya Lifecare Ltd,ALIVE CONSULTANTS ALIVE,BUY,78807,308.16,-
30-MAY-2011,AANJANEYA,Aanjaneya Lifecare Ltd,AMIT SWARUPCHAND KORADIA,BUY,80000,308.23,-
Monday, May 30, 2011
Timbor Home IPO Analysis
Timbor Home, a manufacturer- retailer in the door and furniture business, was originally incorporated as Inside Outside India Dot Com Private Limited on May 11, 2000, as an Internet portal for furniture and interiors. However, the concept did not take off properly, and the company was converted to public limited in June 13, 2009, and renamed as Timbor Home. Started by first generation promoters Anant Sureshchandra Maloo, Manan Vidyapati Patel and Abhijeet Dwarkadas Daga, the company is into manufacturing of door and door frames and kitchen baskets and accessories; and also operates as a manufacturer–retailer with pan India presence with 84 exclusive stores. More than 80 of its stores are operating on franchise model.
Market drifts lower as caution prevails ahead of Q4 GDP data
The key benchmark indices registered small losses, snapping last two days' gains, as caution prevailed ahead of Q4 March 2011 GDP growth data. Index heavyweight Reliance Industries (RIL) edged lower. The BSE Sensex was down 34.04 points or 0.19, up close to 30 points from the day's low and off close to 150 points from the day's high. The market breadth was positive.
M&M slumped more than 5% on uninspiring Q4 results. Most other auto stocks, too, declined. Hindalco Industries edged lower on profit taking after Friday's steep rally. Banking stocks rose for the third straight day. Indian Oil Corporation (IOC) declined on weak Q4 results. BPCL fell on profit taking after reporting good Q4 results.
Sensex ends 34 points lower; auto, Oil & gas drag
The domestic markets took a breather after rallying smartly in the last two sessions owing to profit booking.
Major headlines
Hindalco Inds falls as FY11 cons net profit dips
NALCO gains after posting FY11 results
Hindustan Dorr plunges on disappointing Q4 results
Grey Market Premiums - May 30 2011
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Vaswani Ind. | 49 (Upper Price Band) | -3 to -5 (Discount) |
| Timbor Home | 54 to 63 | 4 to 4.50 |
| VMS Industries | 36 to 40 | 2.50 to 3 |
Market may open flat to slightly higher; ONGC in focus on Q4 results
The market may open flat to slightly higher after previous two days gains. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 3 points at the opening bell. Foreign institutional investors (FIIs) bought shares worth Rs 222.03 crore and domestic funds bought shares worth Rs 388.25 crore on Friday, 27 May 2011, as per provisional figures released by the stock exchanges.
ONGC, M&M, Reliance Communications, Indian Oil Corporation, BPCL and National Aluminum Company are set to unveil Q4 results today, 30 May 2011.
Daily News Roundup - May 30 2011
Minister panel wants Cairn and Vedanta to bear the royalty burden for the Rajasthan oil fields. (BL)
The CBI is probing Idea Cellular and the Tatas for alleged violation of licence conditions in 2005-06. (ET)
DLF to mop up Rs70bn from sale of 5 IT Parks & Hotel business. (ET)
ACC plans million-ton cement unit in Udupi district. (BS)
ABB plans Rs1.15bn unit in Karnataka. (BS)
Aban Offshore plans to raise US$400mn. (BS)
Canara Bank to open 100 rural branches this fiscal. (BL)
Reliance Industries buys gas from Petronet, Shell for captive use. (BS)
Tata Chemicals acquires 16.7mn shares in EPM Mining, US. (BL)
Sensex ends week static...Still in red for May
Indian stock indices recovered towards the end of the week from an 8-week low, as investors ignored the rise in food inflation and bought across sectors. Strong Q4 earnings posted by the likes of Tata Steel and Coal India boosted investor sentiment. On the whole, the Indian market was volatile through the F&O week. Finally, the Sensex and the Nifty closed flat at 18,264 and 5,476 respectively.
Oil & gas stocks advanced led by gains in ONGC after an oil ministry official said the government may raise diesel prices, a move that could reduce the company’s share of the cost to subsidize fuel prices. Most banking shares rose on bargain hunting after recent steep slide.
Sluggish start seen...earnings to hold sway
"Opportunity follows struggle. It follows effort. It follows hard work. It doesn't come before." - Shelby Steele.
May hasn’t provided too many opportunities to investors as far as the Indian equities are concerned. It has been a hard grind with the key indices down 5-6%. FIIs have been net sellers amid concerns that sticky inflation will hit economic growth and earnings. There have been a few negative surprises in Q4 results. Global markets have been wobbly too amid a spate of pressure points.
Markets register modest losses this week
Losses were limited this week, with the Sensex closing lower by 60 points and the Nifty down 10 points.
Major headlines of the week
Food inflation at 8.55% versus 7.47%
BHEL net profit up 47% in Q4
DLF Q4 net profit at Rs737 crore
Tata Steel FY11 consolidated net profit at Rs8,993 crore
Upstream companies subsidy share to be restored at 33.3%
Crude closes above $100 mark
Mixed economic data keep price gains under check
Crude oil prices ended higher on Friday, 27 May 2011 at Nymex. But gains were capped by mixed set of economic data. Prices rose on Friday as ongoing problems of the Eurozone and the weak dollar. Renewed concerns about unrest in Middle East and North Africa pushed up prices further.
Sunday, May 29, 2011
Saturday, May 28, 2011
Market recovers from 12-week low
The market staged a rebound from 12-week low as world stocks recovered. Volatility was high as traders rolled over positions in the derivatives segment from the near-month May 2011 series to June 2011 series. The May 2011 derivatives contracts expired on Thursday, 26 May 2011.
The Sensex declined lost 59.99 points or 0.33% to settle at 18,266.10 in the week ended Friday, 27 May 2011. The Nifty shed 10.25 points or 0.18% to 5,476.10. The BSE Mid-Cap index shed 0.39% and the BSE Small-Cap index shed 0.92%. Both these indices underperformed the Sensex.
Market extends gains for the second straight day
The key benchmark indices extended gains for the second straight day to hit one-week highs buoyed by firm global stocks. The BSE Sensex was up 221.46 points or 1.23%, up close to 180 points from the day's low and off close to 35 points from the day's high. The market breadth was strong. Index heavyweight Reliance Industries (RIL) edged higher. Banking and realty stocks gained for the second straight day on
bargain hunting after recent steep slide.
Friday, May 27, 2011
Daily News Roundup - May 27 2011
Coal India in talks to buy 40% in Indonesian miner for US$1bn. (ET)
DE Shaw and Reliance JV to offer 360 degree financial services. (ET)
Dr Reddy’s polypill for cardiovascular disease has shown positive results in clinical trials. (BL)
NMDC to acquire 50% stake in Australian mining company Legacy Iron Ore. (BL)
Nifty ends above 5400…ONGC, RIL lead
Just when we thought that short sellers seem to be increasing and markets would tank further, the last half an hour of the session saw cash based buying in the Nifty scrip’s which lifted the NSE Nifty to shit over 5400 levels, while the BSE Sensex ended above the 18,000 levels.
Markets started off with positive bias on the back of firm Asian markets following overnight gains in the US and European markets. Key indices were stuck in a very narrow range between 5380-5400 levels and struggled for direction. However, a sudden bout of buying in the index heavyweights like ONGC, DLF, Hero Honda, Gail and HUL lifted the NSE Nifty to end above the 5400 levels.
Fine for the moment!
If we take care of the moments, the years will take care of themselves. - Maria Edgeworth.
Some late short-covering-led bounce lifted Indian indices on the F&O expiry day. Those gains may spill over into today’s session as most Asian markets are trading firm. Japanese shares are down due to a stronger yen. US stocks recovered from intraday lows to finish higher. Technology shares did even better on Wall Street.
Stock benchmarks in Europe were rather subdued. In the absence of major domestic cues, the close today will hinge on overseas markets. Overall, the market will stay sideways in the near-term. The Nifty is likely to find support in the 5300-5400 band and resistance in the 5500-5600 range.
Thursday, May 26, 2011
BSE Bulk Deals to Watch - May 26 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
26/5/2011 531247 Alpha Hitech VINIT RAMESHCHANDRA PARIKH B 25587 2.29
26/5/2011 531678 Anand Credit BRIJESH ASHOKBHAI HALARI S 83913 3.97
NSE Bulk Deals to Watch - May 26 2011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
26-MAY-2011,BRFL,Bombay Rayon Fashions Lim,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,BUY,776729,286.96,-
26-MAY-2011,DCB,Development Credit Bank L,THE RBOS PLC AS DEP OF FIRST ST IN SC FD A SU FD OF FIST INI,BUY,1002851,55.08,-
26-MAY-2011,GSSAMERICA,GSS America Infotech Limi,PRIYESH A BHATT,BUY,102774,197.55,-
Sensex closes 197 pts higher on F&O expiry day
May series settlement day ends well for markets owing to buying interest in oil & gas, metal, auto shares alongwith good global cues
Major headlines
Food inflation at 8.55% versus 7.47%
BGR Energy FY11 consolidated net profit jumps 60%
Canara Bank consolidated net profit soars 34% in FY11
Sensex regains 18,000
The key benchmark indices surged in a volatile trading session on firm global stocks. Bargain hunting emerged after a recent steep slide in share prices. Volatility surged as traders rolled over positions in the derivatives segment from the near-month May 2011 series to June 2011 series, ahead of the expiry of the May 2011 derivatives contracts today, 26 May 2011. The barometer index BSE Sensex regained the psychological 18,000 mark, having alternatively moved above and below that level in intraday trade. The market breadth was positive. The BSE Sensex was up 197.40 points or 1.11%, up close to 180 points from the day's low and off close to 25 points from the day's high.
Daily News Roundup - May 26 2011
Income-Tax Department has slapped an additional demand of Rs5.47bn on DLF. (BL)
Wipro’s infrastructure engineering division has tied up with EADS’ subsidiary to manufacture engineered components for the aerospace and defence sector. (ET)
RIL to be free to price gas for non-core users. (ET)
DLF has appointed advisers to prepare a strategy for sale of its hotel portfolio. (BS)
Sensex ends below 18K...Nifty under 5350
The Indian equities resumed their southbound journey on Wednesday with the two main indices finishing below key psychological levels a day before the derivative settlement.
The mood remained somber almost throughout the session amid nagging worries over the eurozone sovereign debt crisis and trepidation over the end of QE2 in the US.
The market started at the day's high but steadily lost ground to hit intraday low in mid afternoon. The two indices managed to recoup some of the losses by the close of trade though.
May it end!
"Nothing is wasted, nothing is in vain, The seas roll over but the rocks remain." - AP Herbert.
The May derivative settlement hasn’t been great and short rollovers seem to be increasing. The Sensex and the Nifty are also down over 10% year-to-date as rising inflation and hardening rates have sparked FII outflows. In times like these, even rock-solid stocks get worn away.
Market may edge higher on firm Asian stocks; food inflation data eyed
The market may edge higher tracking firm Asian stocks. Bargain hunting may emerge after the recent slide in the indices. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 10 points at the opening bell. Foreign institutional investors (FIIs) sold shares worth Rs 370.79 crore and domestic funds bought shares worth Rs 179.41 crore on Wednesday, 25 May 2011 as per provisional figures released by the stock exchanges.
Volatility may heighten as traders roll over positions in the derivatives segment from the near-month May 2011 series to June 2011 series, ahead of the expiry of the May 2011 derivatives contracts today, 26 May 2011.
BSE Bulk Deals to Watch - May 25 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
25/5/2011 524412 Aarey Drugs THAORLAL ATMARAM MODI B 65000 24.19
25/5/2011 524412 Aarey Drugs BHAVINI VIJAYKUMAR SHAH S 38671 24.48
25/5/2011 531720 Alpha Graphic RITESH MAHESHKUMAR SHAH B 25000 24.83
25/5/2011 511607 Birla Shloka HIRAL DHAVAL SHAH S 115000 13.80
25/5/2011 522292 CHANDNI TE KALIMATA INVESTMENT CONSULTANCY PRIVATE LIMITED S 105000 44.36
NSE Bulk Deals to Watch - May 25 2011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
25-MAY-2011,CREWBOS,Crew B.O.S. Products Limi,GULSHAN INVESTMENT CO. LTD.,BUY,200000,99.50,-
25-MAY-2011,CREWBOS,Crew B.O.S. Products Limi,PNEUMATIC LEASING SERVICES PRIVATE LTD.,BUY,200000,99.50,-
25-MAY-2011,HSIL,HSIL Limited,BLACKSTONE ASIA ADVISORS LLC. ACCOUNT INDIA FUND,BUY,430999,157.00,-
Nifty at 12-week closing low
The key benchmark indices edged lower in a volatile trading session as traders rolled over positions in the derivatives segment from the near-month May 2011 series to June 2011 series, ahead of the expiry of the May 2011 derivatives contracts on Thursday, 26 May 2011. The barometer index BSE Sensex and the 50-unit S&P CNX Nifty hit their lowest level in more than 12 weeks. The Sensex shed 164.73 points or 0.91%, up close to 60 points from the day's low and off close to 130 points from the day's high.
Wednesday, May 25, 2011
Grey Market Premiums - May 25 2011
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Vaswani Ind. | 49 (Upper Price Band) | Discount |
| Aanjaneya Life Care | 234 (Middle Price Band) | Discount |
| PFC | 203 | -- |
| Timbor Home | 54 to 63 | -- |
| VMS Industries | 36 to 40 | -- |
Crude nears $100 mark
Prices take a big leap due to a host of factors
Crude oil prices ended substantially higher on Tuesday, 24 May 2011 at Nymex. Prices rose due to a host of factors. Report on China's oil demand for last month, low dollar and upgradation of oil price forecasts pushed prices higher on Tuesday.
On Tuesday, crude oil futures for light sweet crude for July delivery closed higher by $1.89 (1.9%) at $99.59/barrel. Last week, crude lost 0.2%. Crude oil had climbed 6.8% for the month of April.
Markets expect a weak start
The Indian markets head towards a negative opening tracking weak Asian indices. Bank of India, Cairn India, Coal India, Tata Steel will declare results today
Headlines for the day:
Infosys gets US court subpoena on visa issue
IOC to look for partner for LNG terminal
Banks eye HDFC Bank's loan to Aditya Birla Chem
Daily News Roundup - May 25 2011
Ministry of environment and forests has tied up with RIL to set up a National Centre for Marine Biodiversity in Jamnagar, the first research institute in the PPP mode. (FE)
A district court in Texas, US, has issued a subpoena to Infosys Technologies seeking details of the company’s use of B-1 business visas. (BS)
Punjab National Bank is close to buying as much as 33% stake in MetLife India. (ET)
Wipro, in collaboration with Belgian research institute IMEC is setting up a high-end nanotechnology R&D centre in Bangalore. (ET)
Sensex ends flat amid dull trade...Nifty below 5400
After a steep fall on Monday, the Indian markets ended with modest gains on Tuesday amid some volatility ahead of the F&O expiry. The key stock indices started off with smart gains despite weak cues from the US and European equity markets. However, the Asian indices recovered from the previous session's drubbing and European markets too managed to break the recent sequence of losses. As a result, the sentiment on Indian bourses too improved.
FMCG, Realty and PSU stocks were among the major laggards. On the other hand, Capital Goods, Consumer Durables and Banking stocks were in demand.
Expiry eve…Delicately poised
"The sharp thorn often produces delicate roses." - Ovid.
We are heading into crucial two-day trading as the expiry of current month’s F&O contracts take centerstage. The market is delicately poised with the Nifty just below 5400. The start today is likely to be down. Asian markets are in the red. US stocks closed lower while European indices managed slim gains.
Precious metals shine
Weak dollar push prices higher
Precious metals ended higher on Tuesday, 24 May, 2011 at Comex. Prices rose on Tuesday following a weak dollar as ongoing problems of the Eurozone pushed investors towards bullions as a safer investment bet.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa.
Market may slide on weak Asian stocks; Tata Steel in focus
The market may fall on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 39.50 points at the opening bell. Foreign institutional investors (FIIs) bought shares worth Rs 188.16 crore and domestic funds bought shares worth Rs 32.95 crore on Tuesday, 24 May 2011 as per provisional figures released by the stock exchanges.
Volatility may heighten in the near term as traders roll over positions in the derivatives segment from the near-month May 2011 series to June 2011 series, ahead of the expiry of the May 2011 derivatives contracts on Thursday, 26 May 2011.
BSE Bulk Deals to Watch - May 25 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
24/5/2011 533330 ACROPET TEC INDIA MAX INVESTMENT FUND LIMITED B 200000 25.00
24/5/2011 523411 Adc India Comm-$ LRSD GLOBAL HOLDINGS PRIVATE LIMITED B 42940 135.40
NSE Bulk Deals to Watch - May 25 2011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
24-MAY-2011,ACROPETAL,Acropetal Tech Ltd,INDIA MAX INVESTMENT FUND LTD,BUY,200000,25.00,-
24-MAY-2011,PARAPRINT,Paramount Printpack Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,253403,24.78,-
24-MAY-2011,SABERORGAN,Sabero Organics Gujarat ,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,199761,89.22,-
Markets end with marginal gains amid volatility
The Indian markets closed the volatile trade marginally higher. The Sensex surged 19 points and the Nifty rose 8 points
Major headlines
Power Grid net profit up 32% in FY11
REC FY11 consolidated net profit soars 28%
Bharat Forge net profit up 64% in Q4
Sensex regains 18,000
Firm global markets helped Indian stocks recover from 9-week lows hit in mid-afternoon trade. Intraday volatility was high as traders rolled over positions in the derivatives segment from the near-month May 2011 series to June 2011 series, ahead of the expiry of the May 2011 derivatives contracts on Thursday, 26 May 2011. The BSE 30-share Sensex was up 18.64 points or 0.1%, up close to 80 points from the day's low and off close to 100 points from the day's high.
Tuesday, May 24, 2011
Daily News Roundup - May 24 2011
The government is likely to divest 5% equity in BHEL as part of the exercise to raise Rs400bn from disinvestment during the current financial year. (BS)
Aditya Birla, JSW Steel, and Jindal Steel and Power are among firms shortlisted to bid for Australian coal explorer Bandanna Energy as part of a sale. (BS)
BHEL’s Bangalore-based Industrial Systems Group (ISG) has bagged Rs391mn orders from Tata projects. (BL)
Sensex sinks on global pain...Nifty ends below 5400
After managing a smart pull back in the previous trading session, the Indian market was greeted with a fresh bout of selling pressure on Monday with heavy offloading seen in index heavyweights like BHEL, ICICI Bank, SBI, L&T, RIL, Tata Motors and Tata Steel. So, the last week of the month started off on a negative note as investors mull their strategy for the upcoming derivative settlement.
The key indices opened with a gap down and remained under pressure throughout the trading session amid lingering worries over the precarious fiscal conditions of Greece and other peripheral eurozone nations. Selling was not restricted to India alone.
Slippery…tread cautiously!
"Mock not the fallen, for slippery is the road ahead of you." – Anonymous.
The Indian market seems to be on a slippery slope more or less in tandem with world equity markets. The eurozone debt situation threatens to spiral out of control. A provisional PMI showing weakness in Chinese manufacturing also hit sentiment. The dollar’s sudden upsurge has also had a bearing on risky asset classes. The result: stocks, commodities and EM currencies have all taken a beating.
MOIL
MOIL’s net profit for the year ended March 31, 2011 has surged by 26.10% at Rs 588.06 crore as compared to Rs 466.35 crore for the year ended March 31, 2010. Its total income has increased by 16.93% at Rs 1285.46 crore for the year under review from Rs 1099.37 crore for the previous year.
Monday, May 23, 2011
Indices close below key levels; Sensex down 333 pts
The key indices ended the session with deep cuts, with the Sensex closing below 18000 and the Nifty below 5400
Major headlines
BHEL net profit up 47% in Q4
Tata Chemicals FY11 consolidated net profit up 8%
Mahindra Satyam drops on Q4 net loss
Sensex, Nifty hit 9-week lows as world stocks slide
The key benchmark indices hit 9-week lows, with a setback in world stocks caused by euro zone debt worries hitting sentiment. The BSE 30-share Sensex was down 332.76 points or 1.82%, up about 20 points from the day's low and off close to 275 points from the day's high. The Sensex hit near 9-week low below the psychological 18,000 mark after moving above and below that mark in intraday trade. The 50-unit S&P CNX Nifty hit 9-week low below 5,400 level. The market breadth was weak. Bharat Heavy Electricals (Bhel) slumped on worries of pricing of the proposed follow-on-public offer at a discount to the ruling market price.
Grey Market Premiums - May 23 2011
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Vaswani Ind. | 49 (Upper Price Band) | Discount |
| Sanghvi Forging & Engg. | 85 (Upper Price Band) | +/- 3 to 5 |
| Aanjaneya Life Care | 234 (Middle Price Band) | Discount |
| PFC | 203 | -- |
| Timbor Home | 60 to 70 (Approximate) |
|
Weak global cues may drag markets at start
Today’s opening is expected to be on a weak note on account of losses in the global markets.
Headlines for the day:
RIL may replace ONGC as biggest profit maker
Scooters India's stake sale likely to be over in 2011-12
Drug approvals halt as regulator puts in new clearance system
Market may slide on weak Asian stocks; Bhel Q4 result in focus
The market may slide on weak Asian stocks, which fell as euro zone debt worries resurfaced. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 54 points at the opening bell. Foreign institutional investors (FIIs) sold shares worth Rs 181.55 crore and domestic funds bought shares worth Rs 398.19 crore on Friday, 20 May 2011, as per provisional figures released by the stock exchanges. The market is likely to see a volatile week as derivatives contracts for May 2011 series expire on Thursday, 26 May 2011.
Modest weekly gains for precious metals
Eurozone's debt problems push prices higher
Precious metals ended higher on Friday, 20 May, 2011 at Comex. Prices rose as Eurozone's debt problems resurfaced. Prices added to their gains despite a strong dollar.
Gold for June delivery rose $16.5 or 1.1%, to end at $1,508.9 an ounce on the Comex division of the New York Mercantile Exchange on Friday. For the week, gold gained 1%. Gold ended the month of April higher by 8.1%.
Sensex surges on L&T results...ONGC, ITC drag
The main Indian stock indices accelerated on Friday, extending the gains from the previous session, with the BSE Sensex zooming by nearly 200 points and the NSE Nifty touching the 5500 mark in intraday trading on the back of sustained gains in select index bellwethers.
The market breadth was favourable as the broader indices managed to register decent gains. Barring, Oil & Gas, PSU and FMCG, all the other sectoral indices on the BSE were in the positive territory.
The May pattern
It’s human nature to find patterns where there are none and to find skill where luck is a more likely explanation. - Bernstein William.
Things have turned a little sour for world equity markets in May. Investors seem to have taken the old axiom of 'sell in May and go away' seriously; and they have been lucky so far. India has been no exception with the key indices on a mostly downward spiral. The slide is likely to persist at least at the start of the last week of the month.
Sunday, May 22, 2011
Weekly Watch - May 22 2011
The week started on a negative note as Nifty lost 0.8% on Monday followed by a steeper 1.1% cut on Tuesday. However, a positive thing to happen on Tuesday was that while Nifty closed at 5439, lower than the close of 5460 made on 5th May, the relative strength index (RSI), made a higher bottom, resulting in "Positive Divergence" as shown in the daily chart below. This indicated that the fall is happening with lesser strength and also gave a hope that a pull-back rally might be on cards. On Wednesday, the benchmark fell a third of a percent to make a bottom of 5401, followed by a marginally green Thursday. The last day of the week, finally brought that much awaited pullback, which saw Nifty surging 1.6% intraday to touch a high of 5517 and finally settling at 5486, down 1.05% week-on-week.
While a pull-back rally was a logical expectation after a positive divergence, the resumption of a higher-top higher-bottom formation is the key requirement to turn the view decisively bullish, which is yet to happen. The pullback can extend itself to around 5600 if Friday's high 5517 is crossed, where the 200 day exponential moving average (5615) and the top made on 13th May (5605) present a tough resistance. Beyond 5615, Nifty can rally till 5736, which is the 61.8% retracement level of the 5944-5401 fall as shown in the weekly chart below. On the way down, the breach of this week's low, 5401, can take the benchmark to around 5350, where the trend line adjoining 4786 and 5177, the bottoms made in May 2010 and February 2011 respectively, presents a support. Below 5350, a retesting of 5177 is quite possible.
Markets close week with 1% decline
Markets registered losses this week owing to a rise in petrol prices, sustained foreign fund selling and weak results from SBI. The Sensex down 205 points and the Nifty down 58 points.
Major headlines for the week
Inflation eases to 8.66% in April
SBI net profit at Rs21 crore in Q4
L&T Q4 net profit up 17% yoy
Ashok Leyland Q4 net profit rises 34%
Higher subsidy burden drags OIL, ONGC, GAIL
Saturday, May 21, 2011
Friday, May 20, 2011
Cairn and Vedanta extend deadline on closing deal
Cairn Energy Plc said on Thursday that it has been informed that the Government of India (GoI) Cabinet Committee on Economic Affairs which met on 6 April 2011 to discuss the Cairn Vedanta transaction has referred the matter to a Group of Ministers (GoM). The GoM has not yet met. Accordingly the two companies have agreed to extend the closing date of their Sale and Purchase Agreement in order to secure the necessary consents and approvals from the GoI to complete the transaction. Cairn has been notified by Vedanta of the results of the Open Offer for Cairn India shares by Sesa Goa Limited (a subsidiary of Vedanta), which closed on 30 April 2011. A total of approximately 155 million Cairn India shares, representing 8.1 per cent of the share capital, have been tendered. Following the acquisition of both the 10.4 percent stake from PETRONAS International Corporation Limited announced on 19 April 2011 and the Open Offer shares, Sesa Goa Limited will hold 18.5 per cent of the share capital of Cairn India. Cairn and Vedanta have agreed that, for the purposes of the formula set out in the Share Purchase Deed entered into in August 2010; these shares will all be treated as if they had been acquired in the Open Offer. Accordingly, on completion of the Transaction, Cairn will sell a stake in Cairn India to Vedanta equivalent to 40 per cent of the share capital, following which Cairn will hold a residual interest of 21.7 per cent of the share capital.
FM hopeful of moderation in inflation in coming months
Encouraged by the marginal decline in inflation in April, Finance Minister Pranab Mukherjee said that he was hopeful that prices would come down further in the coming months amid increase in food stocks and decline in the cost of manufactured items.
"The April prices have come down both on the manufacturing sector and food sector...Therefore, this is good trend and if it continues, then perhaps it will be more moderated," Pranab Mukherjee told reporters in New Delhi.
George Soros dumps gold...Paulson stays put
Billionaire investor George Soros's hedge fund exited most of its positions in physical gold in the first quarter of 2011 but hedge-fund manager John Paulson remained invested in the yellow metal amid bets that the rally would continue.
Soros Fund Management, based in New York, owned 49,400 shares of the SPDR Gold Trust at the end of March, down from 4.7 million shares held at the end of December.
Weekly Newsletter - May 20 2011
The announcement of the higher oil subsidy burden for state-run upstream companies partly marred the mood. But, the overall sentiment did receive a slight boost from L&T's results and drop in food inflation in early May. ITC results failed to impress though. Recovery in global stock equities and moderation in the commodity complex supported the Indian markets.
In the coming week, the focus will on the F&O expiry. The market may gain some more ground, provided overseas cues are supportive and results from the likes of Tata Motors, Tata Steel, M&M and Coal India don't sour the mood. Keep an eye on FII flows as well to see if the offshore investors have turned buyers again. Expect some resistance at higher levels.
Although the market could rise slightly from here on, it will be mostly a short covering led bounce. On the whole, the market is suffering from a general lack of interest from large investors. Traders too are caught in a bind amid lack of clarity on the direction of the markets. The near-term outlook remains uncertain amid worries over inflation and its implications for monetary policy.
Inflation slips to 8.66% in April...Feb reading revised
India's annual inflation edged lower last month from March but was still slightly above consensus expectations, government data released showed. Annual, point-to-point inflation for April decreased to 8.66% from 9.04% in March, the Union Commerce & Industry Minister said. Average expectation was for inflation to fall to 8.4%.
Sensex extends rally, closes 185 points higher
Markets carried previous session’s gains and remained strong all throughout the day, with the Sensex up 185 points and the Nifty up 58 points
Major Headlines
ITC consolidated net profit soars 20% in FY11
Higher subsidy burden drags OIL, ONGC, GAIL
IRB Infrastructure falls after posting results
Market recovers after sliding to eight-week low
The key benchmark indices dropped to eight-week low in first half of the week on sustained foreign fund selling and on fears high interest rates may impact corporate profitability. But, the market recovered during the later half on bargain hunting. Volatility was high as select index pivotals saw sharp reactions following unveiling their quarterly earnings. The market logged declines in three out of five trading sessions during the week ended Friday, 20 May 2011.
Auto, banking stocks lead rally
The key benchmark indices extended gains for the second straight day as bargain hunting emerged after recent steep slide. Gains in European stocks also supported Indian stocks. But, political uncertainty pulled the market off highs after a sharp intraday surge on reports that a court has ordered arrest of Dravida Munnetra Kazhagam (DMK) party MP Kanimozhi in the 2G scam spectrum case. The DMK is a part of the Congress-led United Progressive Alliance (UPA) government at the Centre. The BSE 30-share Sensex was up 184.69 points or 1.02%, off close to 105 points from the day's high and up about 165 points from the day's low.
Market snaps three-day losing streak; breadth weak
The key benchmark indices registered small gains in a volatile trading session as index heavyweight Larsen & Toubro surged close to 6% after company said at the time of announcing Q4 March 2011 results that it is well positioned to sustain the revenue growth momentum in the medium term. Data showing easing of food inflation and higher European stocks, aided gains as the market snapped three-day losses. The BSE 30-share Sensex was up 55.20 points or 0.31%, up about 85 points from the day's low and off close to 55 points from the day's high.
Sunday, May 08, 2011
Battered commodities help market snap record losing streak
The key benchmark indices snapped last nine days losing streak as a sharp fall in crude oil prices eased macroeconomic worries. Interest rate sensitive banking and realty stocks rose as fall in crude oil prices eased inflationary concerns and expectations of further hike in interest rates to tame inflation. Auto stocks gained as sharp fall in crude oil prices eased concerns of hike in fuel prices. Index heavyweight Reliance Industries extended initial gains. PSU OMCs and airlines stocks surged on fall in crude oil prices. The market breadth was positive. The BSE 30-share Sensex was up 308.23 points or 1.69%.
Tuesday, May 03, 2011
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