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Saturday, April 16, 2011

Muthoot Finance prices IPO between Rs160-175

Muthoot Finance has fixed a price band of Rs 160-175 per share for its initial public offering (IPO) scheduled to open on April 18. The company plans to raise Rs 9bn from the issue. Bidding for the 51.5 million equity share sale will close on April 21 for retail shareholders, while for qualified institutional bidders (QIBs) it will close a day earlier.

ICICI Securities and Kotak Mahindra Capital are the book running lead managers to the issue, while HDFC Bank is the co-manager.

Weekly Newsletter - Apr 16 2011

The Indian market continued to consolidate in a truncated trading week. Three 'I's - IIP, Infosys and Inflation all fell short of expectations and soured the mood a little bit. If it wasn't for Wednesday's strong rally, the losses could have been more. The earnings season is underway but results will be well spread out, as companies report annual numbers.

Market ends week with modest losses

The Indian markets registered modest losses in this truncated week owing to lower IIP, disappointing Infosys results and a spike in inflation.

Major news for the week

February IIP at 3.6% versus 3.7%

Infosys Q4 net profit at Rs1,818 crore; below expectation

Inflation for March at 8.98% versus 8.31%

IMF lowers 2011 growth forecast to 8.2%

Corporate Q4 earnings to dictate near-term trend

The fourth quarter earnings season would set the tone for the market, which has risen sharply over the past few weeks. The outlook remains cautious over the near term as heightened risk of inflation drives investors to the sidelines. Next week is a truncated trading week as the market remains closed on Friday, 22 April 2011, on account of Good Friday.

Market snaps 3-week rally

Profit booking applied breaks to the rally in the equity market that lasted for three preceding weeks. With crude prices and inflation at high levels, bulls had hoped on corporate earnings for gains in the short-term. But there was little reason for optimism after Infosys' disappointing earnings growth forecast for the year ending March 2012. It was a truncated trading week -- the stock market was closed on Tuesday, 12 April 2011 and Thursday, 14 April 2011 for public holiday.

Market loses ground on disappointing start to earnings season, high inflation

Data showing acceleration in headline inflation in March 2011 and IT bellwether Infosys' disappointing earnings growth forecast for the year ending March 2012 (FY 2012) erased a large part of the gains clocked by the key benchmark indices on Wednesday, 13 April 2011. The BSE 30-share Sensex was down 310.04 points or 1.57%, up close to 50 points from the day's low and off close to 315 points from the day's high. Infosys tanked 9.59% and was the top loser from the Sensex pack. Other IT stocks, too, edged lower after Infosys' disappointing earnings forecast. The market breadth was negative.