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Monday, July 25, 2011
Sensex ends 149 points higher
At 4:00pm ( IST), the BSE Sensex was 18,871, up 149 points over the previous close. It had earlier touched a day’s high of 18,932 and aday’s low of 18,670. It opened at 18,753.
NSE Nifty was quoting 5,677, up 46 points over the previous close.It has earlier touched a day’s high of 5,700 and a day’s low of 5,616. It opened at 5,633.
RCOM, Bharti Airtel, M&M, Tata Steel, L&T, DLF , BHEL,Hero Honda, Tata Motors, HDFC Bank were among the notable leadersin the Sensex and the Nifty.
Cipla, ITC, ACC, ONGC, GAIL, Power Grid, Sesa Goa were among the notable losers in the Sensex and the Nifty.
Japan’s Nikkei Average closed down 0.8%, while Hong Kong’s Hang Seng Index traded down 0.7%.
RIL Q1 net profit up 17%
Reliance Industries Ltd has posted a net profit of Rs. 56610 mn for the quarter ended June 30, 2011 as compared to Rs. 48510 mn for the quarter ended June 30, 2010.
Total Income has increased from Rs. 589500 mn for the quarter ended June 30, 2010 to Rs. 820960 mn for the quarter ended June 30, 2011.
CORPORATE HIGHLIGHTS
Reliance Industries Limited (RIL) has been informed that the Cabinet Committee of Economic Affairs has given its approval to the proposal of RIL to assign 30% of its interest to BP Exploration (Alpha) Limited in 21 out of 23 Blocks. RIL will pursue with the Government to resolve the issues, if any, concerning the balance two blocks.
Reliance Industries Limited (RIL) announced a rich gas and condensate discovery in the very first well drilled in the block CY-PR-DWN-2001/3(CYPR-D6) located in deepwater Cauvery-Palar basin. The block with an area of about 8600 sq km was awarded to RIL under the bidding round of NELP-III. RIL currently holds 100% participating interest in this block. This is one of the 23 exploration blocks where BP would have 30% participating interest.
AXA, Bharti Enterprises (“Bharti”) and Reliance Industries Limited (“RIL”) reached an understanding on the acquisition by RIL and its associate Reliance Industrial Infrastructure Limited (“RIIL”) of Bharti‟s shareholding of 74% in Bharti AXA Life Insurance Co. Ltd (“Bharti AXA Life”) and Bharti AXA General Insurance Co. Ltd. (“Bharti AXA GI”).
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said:“Reliance Industries continues to deliver strong financial and operating results. The growth in earnings was driven by strong refining margins and sustained performance in the petrochemicals business. Our cash flows give us the unparalleled opportunity to allocate capital to higher-margin resource plays in leading markets around the world. We remain committed towards investing in India and have commenced the investment program in the petrochemical business.”
FINANCIAL PERFORMANCE REVIEW AND ANALYSIS
Turnover achieved for the quarter ended 30th June 2011 was Rs 83,689 crore ($ 18.7 billion), an increase of 37.2% on a year-on-year basis. Increase in volume accounted for 4.5% growth in revenue and higher prices accounted for 32.7% growth in revenue. Exports were higher by 57.5% at Rs51,737 crore ($ 11.6 billion) as against Rs32,849 crore in the corresponding period of the previous year.
Consumption of raw materials increased by 40.6% to Rs64,443 crore ($ 14.4 billion) mainly on account of higher crude oil prices. Purchases for traded goods increased from Rs 474 crore to Rs573 crore.
Employee costs were at Rs878 crore ($ 196 million) for the quarter as against Rs617 crore due to higher benefits.
Other expenditure increased by 20.1% from Rs3,583 crore to Rs4,301 crore ($ 962 million). This was on account of higher power and fuel expenses, higher stores, chemicals and repair charges, higher selling expenses and lower exchange differences.
Operating profit before other income and depreciation increased by 6.3% from Rs 9,342 crore to Rs9,927 crore ($ 2.2 bn). Net operating margin was lower at 11.9% as compared to 15.3% on a year-on-year basis. This was due to base effect and higher weightage of the low-margin refining business.
Other income was higher at Rs10.78bn ($ 241 million) as against Rs7.22bn on a year-on-year basis due to income from larger cash balance and higher yields.
Debt as on 30th June 2011 was Rs67,041 crore ($ 15.0 bn) compared to Rs67,397 crore as on 31st March 2011. Net gearing as on 30th June 2011 was 11.4% as against 13.3% as on 31st March 2011.
BSE Bulk Deals to Watch - July 25 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
25/7/2011 512161 8KMILES VIJAY BABULAL SHAH B 40000 48.75
25/7/2011 512161 8KMILES PADMANABHAN RAGHAVAN S 40020 48.75
25/7/2011 530027 Aadi Inds GUINESS FINANCE & LEASING PRIVATE LIMITED S 112000 15.94
25/7/2011 531681 Amradeep Inds MONAL Y THAKKAR S 490000 9.04
NSE Bulk Deals to Watch - July 25 2011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
25-JUL-2011,AMRUTANJAN,Amrutajan Health Ltd,A K G SECURITIES AND CONSULTANCY LTD.,BUY,26753,945.92,-
25-JUL-2011,AMRUTANJAN,Amrutajan Health Ltd,AJAY,BUY,29811,947.34,-
25-JUL-2011,AMRUTANJAN,Amrutajan Health Ltd,AJAY ASSET MANAGEMENT PRIVATE LIMITED,BUY,35470,940.43,-
Sensex extends rally, closes 149 points higher
Buying in heavyweights like RIL, Bharti Airtel and Reliance Communications contributed positively in today’s trade. The Sensex up 149 points and the Nifty up 46 points
Major headlines
Bank of India Q1 net profit falls 29%
Patni Q2 consolidated net loss at Rs52 crore
NTPC Q1 net profit rises 13%
Inventure Growth & Securities IPO subscribed 4.58 times
Gets bids for 3.20 crore shares
Inventure Growth & Securities' initial public offer (IPO) was subscribed 4.58 times and got bids for 3.20 crore crore shares. The company had offered 70 lakh shares in price band of Rs 100 to Rs 117 per share.
The qualified institutional buyers (QIBs) category was undersubscribed with just 25% bids. QIBs bid for 8.70 lakh shares compared with 35 lakh shares allotted for this category by the company. The non institutional investors category was subscribed 9.49 times and the retail investors category was subscribed 8.66 times.
Sensex, Nifty attain 2-1/2-week closing highs
Indian stocks shrugged off weak global cues and gained for the second straight day, led by telecom stocks, which rose on hopes other carriers would follow Bharti Airtel by raising call rates. A reform initiative from the government to open up multi-brand retail boosted sentiment. However, shares of most organized retailers fell on profit taking after recent strong gains. The barometer index BSE Sensex and the 50-unit S&P CNX Nifty attained 2-1/2-week closing highs. The Sensex rose 148.99 points or 0.8%, up close to 200 points from the day's low and off close to 61 points from the day's high.
Daily News Roundup - July 25 2011
- CCEA has approved BP’s US$7.2bn deal to buy stakes in Reliance’s exploration blocks, brightening prospects of higher gas output from the D6 field. (ET)
- Coal India said inordinate delays in the receipt of green clearances for mining proposals have stalled investment decisions on 67 new projects and also affected expansion work in ongoing projects, translating into an annual production loss of 200mn tons. (ET)
Taking a stand!
"The one who adapts his policy to the times prospers." -Niccolo Machiavelli.
It’s been a steady flow of news over the weekend and this week again promises to be action-packed. The opening will be slightly sluggish, as Asian markets are mostly in the red after US leaders failed to reach a deal over the weekend to avoid possible default. In the US market, the Dow fell marginally while the Nasdaq advanced amid no progress in the talks to raise the debt ceiling. The European indices managed modest gains. S&P 500 futures are down while gold futures have hit a new record. The dollar is down. Crude oil futures are hovering around $98 per barrel.
Policy initiatives seem to be on track. The Government cleared the RIL-BP deal and the Committee of Secretaries has given an in-principle nod for allowing up to 51% FDI in multi-brand retail. Some are circumspect as the Cabinet needs to accept the CoS proposal.
Gap- down start likely; RIL nos in focus
The Indian indices are expected to open on a weak note on account of negative Asian cues. Reliance Industries’ results will be out today.
Headlines for the day:
Kingfisher, Jet Airways show interest in BAPL's proposed airport
Ashok Leyland, Nissan set 150,000-unit sales target
Exide Industries eyes 33% market share in inverter battery
Bright day for precious metals
Lingering concerns for Europe and US's debt ceiling crisis boost stocks
Precious metals moved higher on the flight to safety, once again at Comex on Friday,22 July 2011, aided by lingering questions about how the situation in Europe will play out, as well as concerns about how the debt negotiations are going in the US.
Gold traded to highs, at $1607.70, early in the session, but spent the remainder of the day pulling back slowly from those highs. The contract rose as high as $1,607.70 an ounce intraday.
Crude ends modestly higher
Prices also gain on weekly basis as IEA holds on to further release of supply
September crude oil settled higher by 0.8% to $98.87 at Nymex on Friday,22 July 2011 Crude oil futures for light and sweet crude oil spent the session rallying off their lows, at $98.43, and eventually traded back above the $100 level where they put in highs at $100.19 per barrel.
On the week, crude rallied for 2.7%, and posted gains for the fourth week in a row. Crude also benefited this week from a decision from the International Energy Association not to release further stockpiles for now.
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