Monday, January 17, 2011
The Indian markets shut the volatile session on a flat note with a positive bias; ADAG companies’ shares fell sharply on adverse SEBI order
L&T Q3 net profit rises 11% yoy
ADAG stocks slip after SEBI consent order
Axis Bank Q3 net profit jumps 36% yoy
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
17/1/2011 531678 Anand Credit ASHA DEVI KATARIA B 50000 7.94
17/1/2011 531678 Anand Credit AMRATA GUPTA B 50000 7.95
17/1/2011 530187 Atharv Enter MAPAEX INVESTMENTS PRIVATE LIMITED B 225000 11.93
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
17-JAN-2011,BEDMUTHA,Bedmutha Indust Ltd,MAHESH MEETAL,BUY,166251,84.58,-
17-JAN-2011,CANFINHOME,Can Fin Homes Ltd,RAJEN CHANDRAKANT SHARE A/C,BUY,143160,123.88,-
Chinese monetary tightening moves hurt sentiments, US markets closed for holiday today
Asian equities were locked in a weak to flat trading pattern today as the latest Chinese monetary tightening moves curbed the buying enthusiasm despite huge gains in the US stocks on Friday. The mood was cautious as the US markets are closed today on account of the Martin Luther King Jr holiday. China, late Friday said it would raise banks' reserve requirement ratio by 50 basis points, following six hikes last year. This encountered with the gains in the US markets where strong financials pushed the Dow Jones to its highest since June 2008 on Friday.
Bargain hunting helped the market recover from a 4-month low struck in early trade even as market sentiment continues to remain edgy on sustained selling by foreign funds and fears of aggressive rate-hike by central bank to cool inflation. Caution among investors was evident in the weakness in the broader market. Engineering & construction major Larsen & Toubro skidded more than 2% as its operating margin in the third quarter this year declined to 10.8% from 12.4% in Q3 December 2009. Other capital goods stocks also declined.
All progress is precarious, and the solution of one problem brings us face to face with another problem. - Martin Luther King, Jr.
Well, the Indian market hasn’t made any progress whatsoever in the two weeks of 2011. On the contrary, it has lost quite a bit of ground, with back-to-back weeks of heavy losses. A spate of headwinds has taken a big toll on sentiment and the same is reflected in FII outflows.
Infosys plans to acquire small US companies to tap US$70bn government outsourcing market. (ET)
NTPC may miss the Eleventh Plan (2007-12) commissioning targets for the proposed 750MW (3X250MW) Bongaigaon thermal power station in Assam. (BL)
GAIL has finalised a deal for procuring LNG from Qatar. (BL)
What a volatile day of trade we had on Dalal Street today, with the NSE Nifty swinging almost 200 points intraday while the BSE Sensex gyrated over 600 points. This was the continuation of this week's pattern with the main indices surging on Wednesday before diving again on Thursday.
The market may open flat to slightly higher if trading of S&P CNX Nifty futures on the Singapore stock exchange is of any indication. It indicates a gain of 10 points at the opening bell. The market had fallen to four month lows on Friday, 14 January 2011, on worries the central bank may hike rates aggressively in 2011 to cool price rise and inflationary expectations. L&T, Axis Bank and Tata Consultancy Services (TCS) report Q3 results today, 17 January 2011.
The Indian markets are likely to begin the trade on a flat note on the back of not-so-supportive Asian cues. TCS, PFC, L&T will declare their results.
Headlines for the day:
Govt to announce multi-brand retail policy soon
Excise duty alignment with GST likely to impact SMEs
Etisalat misses Zain deal deadline, to keep trying
Stocks register strong weekly gains for the second consecutive week
US stocks ended with strong gains for the week that ended on Friday, 14 January 2011. Better than expected earning and economic reports boosted stocks since the very start of the week. In addition easing of Europe's sovereign debt problems further improved sentiment.
For the week, that ended on Friday, 14 January 2011, Dow ended higher by 112.62 points (1%) at 11,787.38. Nasdaq ended higher by 52.19 points (1.9%) at 2,755.3. S&P 500 ended higher by 21.74 points (1.73%) at 1,293.24.
Positive earnings and mixed data boost prices
Crude prices pared earlier losses and ended marginally higher on Friday, 14 January 2011 at Nymex. Prices rose due to better than expected earning reports and mixed economic data.
On Friday, crude oil futures for light sweet crude for February delivery closed higher by $0.14 (0.15%) at $91.64/barrel. Earlier in the day, prices fell to a low of $90. For the week, crude gained 4%. On a year to date basis, crude is almost unchanged.
Prices drop to lowest level in two months
Precious metals ended considerably lower on Friday, 14 January 2011 at Comex. Prices fell to lowest levels in two months as most of the pressure in the European region regarding concerns over sovereign debt problems eased and also as China hiked its reserve requirements.
Good data and earnings push prices higher
Copper prices ended higher for the day and week on Friday, 14 January 2011. Prices rose due to better than expected earnings data and mixed economic data that boosted overall sentiments. Though prices rose at Comex, they slipped at LME.
Will put money in midcap technology stocks: Damani
Indian markets are still not out of the woods and are trying hard to negotiate the highs of last year. Infosys' December quarter results, low November industrial output data and inflation are dampening market sentiments.
If the last few quarters saw Pfizer's earnings under pressure as it grappled with the integration of Wyeth and the addition of field force, the coming quarters promise to turn that around significantly. Focus on branded generics, market expansion initiatives, strong product portfolio and expected increase in field force productivity promise a smoother sojourn for Pfizer.
Valuations of the ABG Shipyard stock have moved up sooner than expected, owing to the rally it witnessed in the last six months on pick-up in orders and expectations of restoration in capital subsidy. The stock has gained 47 per cent from our ‘buy' recommendation in June 2010, thus capturing much of the potential we saw in the medium term.
Financial stocks have been pummelled in recent sessions on fear of rising interest rates cutting into margins. This provides a good entry point for long-term investors in the stock of REC (Rural Electrification Corporation) as its prospects are quite promising. REC may manage to retain industry spreads in excess of 3 per cent even in a rising interest rate scenario, owing to its access to low-cost funding and its recent ‘infrastructure financing company' status.