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Wednesday, August 03, 2011
Coal India to invest in mining projects
Coal India (CIL) is likely to invest about Rs 28,000 crore in 68 mining projects having a production capacity of about 230 million tonnes per annum, Parliament was informed today.
"The estimated investment likely to be made in CIL and its subsidiaries for the purpose is Rs 27,946.42 crore and it would be mobilised from internal sources of the company," State Minister for Coal Pratik Prakashbapu Patil said in written reply in Lok Sabha.
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Indiainfoline NCDs open for subscription
The NCDs proposed under this Issue have been rated ‘[ICRA]AA- (stable)’ by ICRA, and ‘CARE AA-' by CARE.
There are three investment options.
Option I (Annual interest payment): The redemption date or maturity period is 36 months from the deemed date of allotment and the coupon rate is 11.7% p.a. The interest payment is annual and the face value plus any interest that may have accrued is payable on redemption.
Option II:. NCDs will be redeemed at Rs 1,446 at the end of 40 months from the deemed date of allotment with an effective yield of 11.70% per anum.
Option III (Annual interest payment): The redemption date or maturity period is 60 months from the deemed date of allotment. The coupon rate is 11.9% per annum for Category III investors and 11.7% per annum for others. The interest payment is annual and the face value plus any interest that may have accrued is payable on redemption.
Pay more for LPG if you earn more than 6L
The government should end subsidised domestic cooking gas (LPG) for people with income of more than Rs 6 lakh per annum, a Parliamentary Panel has suggested.
A 14.2-kg LPG cylinder in Delhi currently costs Rs 395.35. This is Rs 247 short of its market price. If the panel recommendation is accepted, people with more than Rs 6 lakh per annum household income will have to pay Rs 642.35 per bottle.
"...to offset the huge losses made on account of subsidised domestic LPG cylinders, the Government may consider to do away with providing subsidised LPG to rich and affluent people having an income of more than Rs 6 lakh per annum", it said.
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Gold prices soar
Gold prices soared further to attain yet another historic high at the domestic bullion market here today on hectic stockists and investment-driven buying fuelled by global bullishness.
Silver too witnessed a sharp spike to revisit its 3-month high on strong speculative build up amidst rising industrial demand.
Standard gold (99.5 purity) rallied by Rs 580 per 10 grams to end at Rs 23,955 from Tuesday's close of Rs 23,375.
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Sensex sags on overseas woes…Nifty holds 5400
Sensex ended at 17,945 losing 169 points. Nifty closed at 5,404 losing 52 points.
The Indian markets have been a bit volatile in the week so far, but the overall bias has been negative owing to the weak global backdrop. The key Indian indices today fell for the second straight trading session with the BSE Sensex dropping below 18,000. But the NSE Nifty managed to end above 5400.
BSE Bulk Deals to Watch - Aug 3 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
3/8/2011 590006 Amrutanjan Health-$ CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 48444 926.29
3/8/2011 590006 Amrutanjan Health-$ A K G SECURITIES AND CONSULTANCY LTD B 55881 926.13
3/8/2011 590006 Amrutanjan Health-$ CHANDARANA INTERMEDIARIES BROKERS PRIVATE LIMITED B 32041 922.79
NSE Bulk Deals to Watch - Aug 3 2011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
03-AUG-2011,AANJANEYA,Aanjaneya Lifecare Ltd,DIVINE VINCOM PRIVATE LIMITED,BUY,13397,398.48,-
03-AUG-2011,AANJANEYA,Aanjaneya Lifecare Ltd,JAROLI VINCOM PVT LTD,BUY,500000,397.05,-
03-AUG-2011,ABGSHIP,ABG Shipyard Limited,AASHIRWAD VINCOM PRIVATE LIMITED,BUY,500000,388.88,-
03-AUG-2011,AMRUTANJAN,Amrutajan Health Ltd,AXIS EQUITIES PRIVATE LIMITED,BUY,18373,923.03,-
03-AUG-2011,AMRUTANJAN,Amrutajan Health Ltd,CHANDARANA INTERMEDIARIES BROKERS P. LTD,BUY,31922,923.32,-
Sensex sinks 169 points on global worries
Fall across the globe due to growth worries disturbed the sentiment in India as well. The Sensex down 169 points and the Nifty down 52 points at the close
Major headlines
Bharti Airtel Q1 consolidated net profit down nearly 28%
CEAT Q1 net loss at Rs42 crore
Oberoi Realty Q1 consolidated PAT surges 33%
Sensex, Nifty near 6-week closing lows
Key benchmark indices extended recent losses and settled near their lowest closing level in nearly 6 weeks on concerns that higher interest rates will crimp corporate profit growth. The barometer index BSE Sensex fell below the psychological 18,000 mark. The Sensex shed 169.34 points or 0.94%, up close to 80 points from the day's low and off close to 65 points from the day's high. The market breadth was negative.
The Sensex has tumbled 930.74 points or 4.93% in seven trading sessions from a recent high of 18,871.29 on 25 July 2011, hit by the Reserve Bank of India's (RBI) aggressive rate hike at a policy review on 26 July 2011. A number of commercial banks have raised lending rates recently after RBI raised its key lending rate by 50 basis points.
Daily News Roundup - Aug 3 2011
Wockhardt Ltd has agreed to sell its nutrition business to Danone for about US$356 million. more than double the amount at which it had signed a similar deal with US pharmaceutical giant Abbott a year ago. (BS)
In a bid to boost sagging sales of passenger vehicles, Tata Motors has firmed up plans to restructure its local dealership network in the course of this financial year. (BS)
Sensex and Nifty lose 1% each in all-round selling
After two straight days of upswing, the Indian equity markets ended in the red, as investors remained risk averse amid speculation of further rate hikes and earnings downgrades. Weak global markets also affected sentiment on the domestic bourses after downbeat manufacturing data from Australia to the US fueled worries about the state of the world economy.
The BSE Sensex ended at 18,109, down 204 points or 1.1%. It had earlier touched a day's low of 18,037 after opening at day's high of 18,283.
Odds against us!
A recovery is not ruled out after the recent selloff. We expect the down-trend to worsen with medium term support for the Nifty likely at ~5370 levels.
If you don't prove yourself against the odds then how can you be worthy for the evens? - Anonymous.
World markets are going through yet another rough patch, with the Dow down for eight straight days. The S&P 500 is in the red for 2011. This is Wall Street’s worst losing streak since October 2008.
The initial euphoria over the US debt deal has given way to apprehensions about the health of the global economy. The eurozone credit crisis also keeps rearing its ugly head intermittently.
Risk aversion is on the rise, with the Swiss franc hitting record high versus the euro. Gold and government bonds too are seeing ‘flight-to-safety’ buying.
The opening is likely to be pretty weak amid a world-wide carnage. The rest of the day’s proceedings will hinge on how overseas markets perform. A recovery is not ruled out after the recent selloff.We expect the down-trend to worsen with medium term support for the Nifty likely at ~5370 levels.
Equities and other risky assets are not on the buying list for the time being unless you are willing to patiently wait it out. Stay lighter till the near-term uncertainties ebb. Given the global economic backdrop, India’s 8% GDP growth may not be that bad. Medium-to long-term investors could look at quality stocks at lower levels.
FIIs were net sellers of Rs. 2.01bn in the cash segment on Tuesday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net buyers at Rs. 1.39bn on the same day. FIIs were net sellers at Rs. 6.51bn (provisional) in the F&O segment.
Precious metals witness sharp gains
Investors flock to bullions on growing concerns over US economy
Precious metals ended at record highs on Tuesday, 02 August 2011 at Comex. Gold prices soared with silver following it as investors flocked to precious metals following a report from the Commerce Department that consumer spending in US dropped in June. Prices rose despite a s steady dollar. Ongoing concerns about the sluggish pace of the economy's recovery pushed prices higher.
Market may extend losses on weak Asian stocks; Bharti Airtel in focus
The market may extend losses on weak Asian stocks. Trading of S&P CNX Nifty on the Singapore stock exchange indicates a fall of 82.50 points at the opening bell.
FIIs sold shares worth a net Rs 201.68 crore on Tuesday, 2 August 2011, as per provisional data from the stock exchanges. Domestic institutional investors (DIIs) bought shares worth Rs 139.88 crore on that day. Weak global stocks dragged Indian shares to 5-1/2-week closing lows on Tuesday, 2 August 2011. The BSE Sensex was down 204.44 points or 1.12% to 18,109.89, its lowest closing level since 23 June 2011.
Markets may fall at start on global growth fears
Economy fears have rattled markets across the globe, which may drag the Indian indices in the opening trade.
Headlines for the day:
HDFC raises home loan rates by 50 bps
Bank staff to go on strike on August 5
Maharashtra govt rules out CBI probe into Ambani home land dispute
Today's Stock Picks - Reliance Communications - Aug 3 2011
NIFTY
Current: 5,457 (Aug fut: 5,467),
Target: NA
The index breached support at 5,450 intra-day before a small recovery. It looks bearish. Three strategies come to mind. 1) Short August future with a stop loss at 5,500 and a 3-session target of 5,300.2). Bearspread with long 5,400p (72) and short 5,300p (42) - net cost of 30, max gain of 70. 3). Long 5,500c (82) and long 5,400p (72). This long strangle will gain 20-25 if the market swings 100 points either way.
Check the other stock picks
US Stocks plunge on economy concerns
The stock market fell sharply Tuesday because investors have grown increasingly worried about the economy.
The Standard & Poor's 500 index lost 33 points, or 2.6 percent, and is now down 0.3 percent for the year. The Dow Jones industrial average fell 266 points, or 2.2 percent, and is now up just 2.5 percent for the year.
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Nifty heading lower today
The 50-share Nifty index is expected to open lower on Wednesday tracking weak Asian markets while investors will keep a close watch on Bharti Airtel ahead of its quarterly results and DLF Ltd which reported its quarterly results post market hours.
According to ET now estimates the telecom giant is expected to post 4% growth in top line. India & South Asian revenue is expected to grow 3.1%. Revenue is expected to decline nearly 1% QoQ while in paisa terms it may translate to 43 paise. Overall EBIDTA margins are expected to improve by 55 bps.
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