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Wednesday, December 07, 2011
SKS Microfinance hits 5% upper circuit
SKS Microfinance' hits 5% upper circuit, touching the monthly high of Rs112.95, as the company is planning to launch a wholly-owned subsidiary for non-microfinance businesses. Seven months ago, the company diversified into new businesses like Sangam Stories, mobile handset loans and gold loans.
The company plans to invest Rs15 crore in the next three years in order to align its customer grievance redressal and client protection practices with globally recognised benchmarks. “The investment will drive a five-pronged customer protection strategy, which includes privacy of client data, transparent and responsible pricing, mechanism for redressal of grievances, avoidance of over-indebtedness among borrowers and appropriate collection practices,” it said in a statement.
Volatile trade ends in green
The Indian markets ended higher in a volatile session, with the Sensex rising by 72 points and the Nifty up by 23 points.
Major headlines
Govt suspends foreign supermarket entry on protests
Govt committed to growth of telecoms sector: PM
SKS Microfinance hits 5% upper circuit
Meghmani spurts on setting up JV with Mitsui, Kaneka
Also Read: Numb November; Markets down 9% on global growth woes
BSE Bulk Deals to Watch - Dec 7 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
7/12/2011 531247 Alpha Hitech VIRAJ DEEPAK DALAL B 42000 5.85
7/12/2011 531247 Alpha Hitech M/S.CHANDRAVADAN J. DALAL S 41755 5.85
7/12/2011 532435 Asia HR Tech KAMAL KANAYALAL MAKHIJA B 70000 5.91
7/12/2011 532435 Asia HR Tech HARESH KANAYALAL MAKHIJA B 100000 5.91
NSE Bulk Deals to Watch - Dec 7 1011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
07-DEC-2011,AUTOIND,Autoline Industries Limit,BP FINTRADE PRIVATE LIMITED,BUY,117313,122.52,-
07-DEC-2011,BEDMUTHA,Bedmutha Indust Ltd,MEENA AGARWAL,BUY,122574,47.19,-
07-DEC-2011,BEDMUTHA,Bedmutha Indust Ltd,NITIN BABAJI PALANDE,BUY,177411,47.17,-
07-DEC-2011,EXCELINFO,Excel Infoways Limited,ARCADIA SHARE & STOCK BROKERS PRIVATE LIMITED,BUY,233332,10.15,-
07-DEC-2011,IBREALEST,Indiabulls Real Estate Li,GENUINE STOCK BROKERS PVT LTD,BUY,3715921,53.71,-
07-DEC-2011,MBSWITCH,M&B Switchgears Ltd,PERSISTENT INFOTECH PRIVATE LIMITED,BUY,197000,87.35,-
Story of SKS Microfinance
By Namrata Acharya/Business Standard
Vikram Akula was the golden boy of microfinance when he launched his company SKS. How did things go so horribly wrong?.
The story of Vikram Akula is almost like a classic Greek tragedy with epic peaks, troughs and betrayals that could easily make up a Hollywood movie. Akula remains a controversial character, whose very name incites admiration and criticism in equal measure. Some say that he gave birth to the microfinance industry as we know it in India. Others say that his model of lending, pioneered by his company SKS Microfinance, gave birth to an almost unquenchable thirst for profit, driven by a business model that has no place in ameliorating the state of the poor in India. Regardless of how people feel, one thing remains clear: Microfinance will never be the same without him.
Sensex scales 3-week closing high
The benchmark indices edged higher in a volatile trading session today, 7 December 2011, on firm global cues. Both Sensex and Nifty ended at their highest closing levels since 15 November 2011. The BSE Sensex rose 71.73 points or 0.43%, up close to 95 points from the day's low and off about 127 points from the day's high. Market breadth was positive. Both mid-cap and small-cap indices on BSE underperformed the Sensex.
Index heavyweight Reliance Industries (RIL) edged higher in volatile trade. However, another index heavyweight ICICI Bank declined. Auto stocks were mixed. Most IT stocks rose on hopes euro zone will take concrete steps to resolve the region's debt crisis. Interest rate sensitive realty stocks extended recent gains on hopes a slowing economy could prompt the Reserve Bank of India (RBI) to pause on rate increases this month. Most of the metal stocks gained. Pharma stocks declined.
Market Technicals - Dec 7 2011
Nifty December futures open interest increased to 22.56 million shares from 21.98 million shares. Most of the accumulation seems to be on the short side as indicated by FIIs index futures segment. FIIs turned net sellers to the tune of Rs2.16 billion along with an increase of 4.86% shares in open interest. With no incremental long accumulation observed in the up move and the subsequent short build up on a halt in the rally in the index suggest cautious sentiments prevailing in the street.
Markets in positive mode; Sensex up over 150 points
The Indian markets resumed the session marginally lower and then turned to a positive note. The Asian indices rose, with optimism returning ahead of this week’s crucial European meetings after a report that more rescue funding may be available to help the region. Heavyweights like RIL, Infy, HDFC Bank, ITC, L&T, SBI, HDFC and Tata Power are the strong contributors to the Sensex.
The Indian rupee opened at 51.33 per dollar.
All the sector are trading in green. The top most gainers are - BSE Power up by 1.40%, BSE IT up by 1.21%, BSE Realty up by 1.19%, BSE CG up by 1.01% and BSE Auto up by 1.01%.
Trading Help
Global Cues:
The European shares mostly fell on Tuesday (December 06, 2011) and the euro hit a one-week dollar low after an S&P warning of a eurozone downgrade overshadowed news of a Franco-German plan to save the single currency.
The US stocks were mixed on Tuesday as investors continued to worry about Europe's economy but some became hopeful that an upcoming summit of European leaders would yield results that combat the sovereign-debt crisis.
The Asian stock markets rose on Wednesday (December 07, 2011) amid cautious optimism European leaders will deliver a comprehensive plan to contain the Continent's debt crisis. SGX Nifty was trading 38 points higher, suggesting a positive start for the Indian markets.
Daily News Roundup - Dec 7 2011
Mahindra & Mahindra plans to more than double the output of its much sought after premium SUV, XUV 5OO to 4,000 units within the next 6 months. (ET)
Ranbaxy Laboratories launched a generic version of Caduet, used for treating cardio vascular diseases, in the US market, as part of an agreement with Pfizer. (ET)
Hindalco Industries has plans to double its capacities with an investment outlay of over US$5bn. (ET)
Sensex struggles in insipid session
The Indian markets ended on a flat note at the end of a lackluster trading session, as investors turned cautious ahead of a crucial week for the debt-plagued eurozone. The Government's flip-flop on the FDI in retail issue also dampened the mood slightly with retail stocks particularly taking a hit in today's trade.
Markets traded with a negative bias throughout the day. The NSE Nifty recovered after hitting an intra-day low of 5002. It managed to hold on to the crucial 5,000 level even as the India VIX jumped by over 4%.
Betting on bazooka!
The only courage that matters is the kind that gets you from one moment to the next. - Mignon McLaughlin.
Every moment seems to be bringing new promises and often new disappointments. For now Europe continues to hog the limelight amid optimism that leaders from the region will be able to chalk out a wide-ranging plan to tackle the long-running credit crisis at a summit scheduled for Dec. 9. In other words, investors are expecting a financial ‘bazooka’ that will combine the resources of an existing bailout fund with one that is planned for next year.
Market may open on a positive note
The market may open on a positive note tracking firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 27 points at the opening bell. The market remained closed on Tuesday, 6 December 2011, on account of Moharum.
Key benchmark indices snapped a three-day rally in a volatile trading session on Monday, (5 December 2011) on profit booking. The BSE Sensex fell 41.50 points or 0.25% to 16,805.33.
Foreign institutional investors (FIIs) bought shares worth Rs 146.73 crore on Monday, 5 December 2011, as per the provisional data from the stock exchanges. FIIs had bought shares worth Rs 1318.27 crore in three trading sessions from 30 November 2011 to 2 December 2011.
Tuesday, December 06, 2011
Predictions for 2012 and 2013
Source: Goldman Sachs
1. Slow Growth For Two More Years in Developed Economies
The thread holding the global economic picture together will remain one of slow, and in some cases negative, growth. Headwinds from austerity measures which have hit government spending will hit the U.S. and peer nations in Europe. Add in private-sector deleveraging, and a banking system that is on the cusp of further layoffs, and its not too bright. Goldman also sees high unemployment plaguing the advanced nation labor forces.
2. Emerging Markets Will Remain Resilient to the Challenges
Issues that are facing developed nations will not move ot emerging markets. Inflation will begin to ease and economic policy will shift further towards prevention of slow growth. That theme has already proven itself at the end of 2011, as China's central bank, the People's Bank of China, cut reserve requirements by 50 basis points at the nation's largest institutions.
Read the Other 8 predictions
SKS Microfinance to move up ?
SKS Microfinance is planning to raise the investment limit for Foreign Institutional Investors (FIIs) from the existing 24% to 74% of the company's paid up equity shares. The decision will be taken in the Extraordinary General Meeting, scheduled on Dec 21, 2011. The move is aimed at attracting foreign investors to the company. As on September 2011, FIIs were holding 19.02% of the paid up capital (decreased by 156 bps sequentially).
We feel that this decision by the company is surprising, not because the investment limit has been raised, but on account of the fact that in the past, FIIs have continuously sold of their shares, bringing down their stake
BSE Bulk Deals to Watch - Dec 5 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
5/12/2011 532797 Autoline Inds JAINAM INVESTMENTS B 67076 109.31
5/12/2011 533270 Bedmutha Inds NITIN BABAJI PALANDE B 136376 44.93
5/12/2011 533469 Birla Pacific Medspa VARIETY TRADE LINK PRIVATE LIMITED B 800000 9.98
5/12/2011 533469 Birla Pacific Medspa TRIPURARI PROPERTIES PRIVATE LIMITED B 671500 10.25
5/12/2011 533469 Birla Pacific Medspa JALAN CEMENT WORKS LIMITED S 800000 9.98
Monday, December 05, 2011
NSE Bulk Deals to Watch - Dec 5 1011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
05-DEC-2011,AUTOIND,Autoline Industries Limit,JAINAM INVESTMENTS,BUY,121960,109.20,-
05-DEC-2011,BEDMUTHA,Bedmutha Indust Ltd,NITIN BABAJI PALANDE,BUY,209355,45.30,-
05-DEC-2011,ECEIND,ECE Industries Limited,BLUEBIRD MERCANTILES PVT LTD,BUY,70000,96.36,-
05-DEC-2011,ECEIND,ECE Industries Limited,PAT Financial Consultants Pvt Ltd,BUY,70000,98.06,-
05-DEC-2011,EXCELINFO,Excel Infoways Limited,ARCADIA SHARE & STOCK BROKERS PRIVATE LIMITED,BUY,300000,10.10,-
Market ends with modest losses
It turned out to be a volatile Monday, with the Sensex closing 42 points lower and the Nifty down by 11 points.
Headlines for the day
India’s services sector rebounds in November
Stone India executes MOU with German firm; stock gains
Retail shares tumble after govt puts FDI on pause
Praj Industries accelerates as board approves buyback
Nifty December 2011 futures at premium
Turnover declines
Nifty December 2011 futures were at 5072.25, at a premium of 33.10 points compared to spot closing of 5039.15. Turnover on NSE's futures & options (F&O) segment declined to Rs 88751.86 crore from Rs 113536.82 crore on Friday, 2 December 2011.
State Bank of India (SBI) December 2011 futures were at 1902, at a discount compared to spot closing of 1916.
Market snaps 3-day rally
Key benchmark indices snapped a three-day rally in a volatile trading session today (5 December 2011) as investors booked profit. Trading volumes were light as market remains closed on Tuesday, 6 December 2011, on account of Moharum. The BSE Sensex fell 41.50 points or 0.25%, up about 114 points from the day's low and off close to 58 points from the day's high. The market breadth was positive.
Index heavyweight Reliance Industries (RIL) trimmed losses in volatile trade. FMCG stocks declined. Metal stocks dropped on weak economic data in China, the world's largest consumer of copper and aluminum. Capital goods stocks gained. IT stocks were mixed after a strong economic data in US. Shares in Indian retailers fell after reports the government had paused on plans to open up the country's $450 billion retail sector to foreign supermarkets.
Daily News Roundup - Dec 5 2011
Koutons Retail India has shut 150 more shops, mostly of its casual menswear brand Charlie Outlaw, as part of its ongoing reorganization to meet the conditions of the corporate debt-restructuring package approved by the Reserve Bank. (ET)
Emami Group has bought 850 acres of prime real estate in a countrywide property expansion binge and has spent more than Rs2bn to buy land in Hyderabad, Chennai, Coimbatore, Jhansi and Kolkata for developing up-market large scale residential and commercial complexes. (ET)
Reliance Infrastructure is evaluating projects in Vietnam, Turkey, Oman and Nepal as it seeks to build a portfolio of US$1.5bn in two years and expand its footprint beyond India. (ET)
Sensex does an encore…Surges by another 300 pts
What a day to end the week! Frontline Indian stock indices finished with a big flourish, ending near the day’s high after opening at day’s low. The way morning session went hardly anyone would have bet on a second-half rally. But, markets have their own way of surprising investors. Today was one such day.
In the process, the Indian market capped one of its best weeks in recent memory. The BSE Sensex and the NSE Nifty notched their first weekly gains in five, notwithstanding a plethora of bad news. The Sensex is now close to 17,000 and the Nifty is back above the psychological 5,000 mark. Part of the bounce this week could be attributed to short covering as traders covered their bearish bets.
Lacking conviction
Constant repetition carries conviction. - Robert Collier
If only we could have a repeat of last week, which was particularly good one for Indian stocks. Tuesday’s trading holiday will make movement choppy with a slightly negative bias. The opening is set to be lower. Asian markets are quite subdued following a flat finish on Wall Street on Friday. European indices did close with decent gains.
Retail stocks will be in focus amid reports that the Centre has put the proposed opening of retail to FDI in cold storage. The parliament, which has been paralysed during the ongoing winter session, will resume on Wednesday. It is likely to be a stormy affair yet again.
Volatile crude ends modestly higher
Better than expected job report help prices rise
Crude prices remained volatile for most part of the day on Friday, 02 December 2011 at Nymex. Prices ended modestly higher but off their session highs. Prices gained following a better than expected job report at Wall Street on Friday. Prices also rose on hopes of more central bank stimulus measures ahead of the euro zone summit.
Light and sweet crude for January delivery rose $0.76 (0.8%) to $100.96 a barrel on the New York Mercantile Exchange on Friday. Prices rose to a high of $101.56 during intra day trading. For the week, crude gained 4.3%. For the month of November, oil futures gained 7.7%.
Market may see a weak start
The market may open lower as most Asian stocks declined. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 32.50 points at the opening bell. The market remains closed on Tuesday, 6 December 2011 on account of Moharum.
Key benchmark indices gained for the third straight day to hit more than 2-week highs on Friday, 2 December 2011 on firm European stocks and higher US index futures. The 50-unit S&P CNX Nifty index regained psychological 5,000 mark. The BSE Sensex was up 363.38 points or 2.2% to 16,846.83, its highest closing level since 15 November 2011.
Gold rises but silver drops
Yellow metal registers first weekly gains in three weeks
Precious metals ended mixed on Friday, 02 December 2011 at Comex. Gold prices ended higher despite a strong dollar. Silver fell. Yellow metal prices rose on hopes of more central bank stimulus measures ahead of the euro zone summit. Gold and silver were trading up as much as 1.6% and 3.0% respectively before the rally in the dollar wiped away their strong gains.
Gold for February delivery ended higher by $11.5 or 0.7%, to end at $1,751.3 an ounce on the Comex division of the New York Mercantile Exchange on Friday. For the week, gold gained 3.9%. It was first weekly gain for gold in three weeks.
Markets may see a lower opening
Today’s opening is likely to be on a negative note on the back of unsupportive global cues. Investors await for cues from Europe on austerity measures.
Headlines for the day
Bank of India buys 51% in Bharti Axa MF
DLF divests stake in IDFC JV, gets Rs 200cr as 1st tranche
Cosmetics, soaps to get pricey as rupee skids
GMR Infra may expand Petronas agreement
SRF to invest Rs 1,400 cr in diversification
Events for the day
New Listing: GPT Infraprojects
Sunday, December 04, 2011
Saturday, December 03, 2011
BSE Bulk Deals to Watch - Dec 3 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
2/12/2011 523716 Ashiana Hous-$ IDBI FORTIS LIFE INSURANCE COMPANY LIMITED S 142500 150.00
2/12/2011 531568 Ashutosh Paper LAVITRA TECHNOLOGIES PRIVATE LIMITED B 49500 172.05
2/12/2011 512149 Avance Tech B M TRADERS B 7324133 0.20
2/12/2011 512149 Avance Tech VORA FINANCIAL SERVICES PRIVATE LIMITED B 4500000 0.20
NSE Bulk Deals to Watch - Dec 3 1011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
02-DEC-2011,BEDMUTHA,Bedmutha Indust Ltd,NITIN BABAJI PALANDE,BUY,199997,43.39,-
02-DEC-2011,ECEIND,ECE Industries Limited,BLUEBIRD MERCANTILES PVT LTD,BUY,193715,90.10,-
02-DEC-2011,ECEIND,ECE Industries Limited,PAT Financial Consultants Pvt Ltd,BUY,182745,97.13,-
02-DEC-2011,PRAKASHCON,Prakash Constrowell Ltd,NITIN BABAJI PALANDE,BUY,199796,223.60,-
02-DEC-2011,PRAKASHCON,Prakash Constrowell Ltd,OVERALL FINANCIAL CONSULTANT PVT LTD,BUY,164880,222.40,-
NSE BSE Trading Holidays 2012
| Holiday | Date | Day |
| Republic Day | 26-Jan-12 | Thursday |
| Mahashivratri | 20-Feb-12 | Monday |
| Holi | 8-Mar-12 | Thursday |
| Mahavir Jayanti | 5-Apr-12 | Thursday |
| Good Friday | 6-Apr-12 | Friday |
| Maharashtra Day | 1-May-12 | Tuesday |
| Independence Day | 15-Aug-12 | Wednesday |
| Ramzan Id | 20-Aug-12 | Monday |
| Ganesh Chaturthi | 19-Sep-12 | Wednesday |
| Mahatma Gandhi Jayanti | 2-Oct-12 | Tuesday |
| Dussera – Vijaya Dashmi | 24-Oct-12 | Wednesday |
| Bakri Id | 26-Oct-12 | Friday |
| Diwali Amavasya (Laxmi Pujan)* | 13-Nov-12 | Tuesday |
| Diwali Balipratipada | 14-Nov-12 | Wednesday |
| Gurunanak Jayanti | 28-Nov-12 | Wednesday |
| Christmas | 25-Dec-12 | Tuesday |
* Muhurat Trading shall be held on Tuesday, November 13, 2012 (Diwali Amavasya – Laxmi Pujan)
Tata Steel partly shuts Wales strip mill, cuts 115 jobs
Tata Steel said it has temporarily shut down its hot strip mill partly in South Wales and has cut 115 jobs at the plant due to poor demand from within Britain.
'Tata Steel is temporarily to mothball the hot strip mill at its Llanwern site in Newport, South Wales, with immediate effect,' the company said in a statement.
The facility is expected to remain mothballed until the UK economy and steel demand justify a restart, it said.
Market soars on firm global cues
The market surged last week as global stocks climbed on renewed optimism that European officials were poised to take action to alleviate debt crisis wreaking havoc in the euro zone. Investors shrugged off India's weak GDP data amid expectation that the Reserve Bank of India (RBI) may pause its aggressive monetary stance to prop up growth.
The BSE Sensex surged 1,151.40 points or 7.34% to 16,846.83 in the week ended Friday, 2 December 2011. The 50-share S&P CNX Nifty surged 340.10 points or 7.22% to 5,050.15.
The BSE Mid-Cap index jumped 2.69% while the BSE Small-Cap index rose 2.32%. Both these indices underperformed the Sensex.
Market volatility likely to continue in forthcoming week
The market is likely to exhibit high degree of volatility in the forthcoming week. Lacking a clear direction, the market will dance to the tunes of pace of reforms, foreign fund flows and global cues.
The week ahead is a truncated one as the stock market remains closed on Tuesday, 6 December 2011 on account of Moharum.
Market gains for the third straight day; Nifty above 5000
Key benchmark indices gained for the third straight day to hit more than 2-week highs on firm European stocks and higher US index futures. The 50-unit S&P CNX Nifty index regained psychological 5,000 mark. The BSE Sensex was up 363.38 points or 2.2%, up about 410 points from the day's low and off about 40 points from the day's high. The market breadth was strong. Index heavyweight Reliance Industries (RIL) edged higher.
From the recent low of 16,008.34 on 29 November 2011, the Sensex gained 838.49 points or 5.23% in three trading sessions. The Sensex has slumped 3,662.26 points or 17.85% in calendar 2011. From a 52-week high of 20,664.80 on 3 January 2011, the Sensex has lost 3,817.97 points or 18.47%. From a 52-week low of 15,478.69 on 23 November 2011, the Sensex has risen 1,368.14 points or 8.83%.
Friday, December 02, 2011
Daily News Roundup - Dec 2 2011
Reliance Industries has told the government that already declining production at it’s the D6 block in offshore Andhra Pradesh, could plummet drastically if its investment plans are not approved forthwith. (ET)
Maruti Suzuki India said it had not indulged in any unfair labour practice by asking its workers to sign good conduct bonds, countering a statement made by labour and employment minister. (BS)
Mumbai International Airport Limited is from this Saturday putting Kingfisher Airline on a cash-and-carry mode, as it has not paid Rs900mn towards landing, parking and other charges. (ET)
BHEL has bagged a Rs400mn contract to supply equipment for a captive power plant being set up at global steel giant Arcelor Mittals plant in Ukraine. (BS)
Putting things in order!
Set all things in their own peculiar place, and know that order is the greatest grace.- John Dryden.
It appears to be consolidation time for the markets after coordinated central bank action lifted the sagging spirits briefly. The opening is likely to be tepid. Asian markets are mostly down following the overnight declines in Europe. US indices finished nearly flat. All eyes will be on the US monthly jobs report, to be released before the US market opens.
The good news is that FIIs have been net buyers in the last couple of sessions. Another encouraging tiding is that food inflation has softened lately. Hopefully, this trend will continue, giving much-needed elbow room to the RBI for keeping status quo on rates. Reduction in rates is still some time away though.
Market may start lower on weak Asian stocks
The market may open lower tracking weak Asian stocks, the day after a strong rally helped by a coordinated central bank action to cut the cost of funds in money markets. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 9.50 points at the opening bell.
IT stocks will be watched as the rupee surged 1.4% on Thursday and posted its largest single-session rise since May 2009, powered by hopes of dollar inflows, a day after the world's six major central banks announced co-ordinated action to help ease the euro zone crisis. The partially convertible rupee ended at 51.46/47 per dollar, after gaining as much as 51.40 -- a level last seen on November 18 -- in early trade. It had closed at 52.20/21 on Wednesday. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.
Flat to negative start likely on global cues
The markets may see a flat to negative start in today's session. European officials agreed to strengthen a bailout fund and seek more aid from the IMF to lend to troubled economies.
Headlines for the day
ONGC investing Rs25,000 cr in 11 projects
Axis Bank to raise Rs1,500 crore from bonds
FDI to improve efficiency of retailers: Fitch
IRDA notifies IPO norms for life insurers
Unitech moves CLB seeking observer for Uninor's AGM
Thursday, December 01, 2011
Central banks’ move spur rally; Sensex ends 360 pts higher
Today’s big rally was led by optimism in the global indices on liquidity moves by central banks and China’s credit easing. The Sensex rose 360 points and the Nifty surged 105 points
Headlines of the day
Exports surge 10.8% in October
Food inflation at 8% versus 9.01%
India's manufacturing PMI falls to 51.0 in November
M&M posts 53% rise in sales in November
India Securities consolidated FY11 net loss at Rs714.45 cr
Nifty December 2011 futures above 4900
Turnover rises
Nifty December 2011 futures were at 4957.15, at a premium of 20.30 points compared to spot closing of 4936.85. Turnover on NSE's futures & options (F&O) segment rose to Rs 113363.99 crore from Rs 112728.47 crore on Wednesday, 30 November 2011.
ICICI Bank December 2011 futures were at 765.55, at a premium over spot closing of 762.
State Bank of India (SBI) December 2011 futures were at 1813.65, at a discount compared to spot closing of 1821.
Market scales 2 week closing high on central banks' liquidity move
Key benchmark indices gained for the second straight day to hit highest level in two weeks as world's six major central banks move to come together to tame a liquidity crunch for European banks by providing cheaper dollar funding boosted sentiment. The BSE Sensex was up 359.99 points or 2.23%, off close to 235 points from the day's high and up about 50 points from the day's low. The market breadth was positive.
Interest rate sensitive banking, realty and auto stocks gained triggered by hopes a slowing economy could prompt the Reserve Bank of India (RBI) to pause on rate increases this month. Metal stocks jumped after LMEX, a gauge of six metals traded on the London Metal Exchange surged 5% on Wednesday, 30 November 2011. Maruti Suzuki India fell on poor November sales. Index heavyweight Reliance Industries (RIL) trimmed initial gains.
Stocks to Watch Today
Jet Airways may review LCC strategy to take on IndiGo
Govt not in a hurry to reply to RIL's arbitration notice
CBI issues tax notice to Dr Reddy's
PSU cos to cut petrol rates by Rs 0.65/litre excluding tax
SAIL-led group gets a big bite of Afghan mining pie
Jain Irrigation to develop technology for dry regions
Lipitor patent expires, all eyes on Ranbaxy generic
MCL plans four transport corridors in colliery areas
PFC going slow on fund raising
Daily News Roundup - Dec 1 2011
Reliance Industries will not make fresh investments needed to revive sagging output from the D6 block until legal issues are resolved. (ET)
Public sector oil retailers have cut petrol prices by up to Rs 0.83 a litre. (BL)
Ranbaxy is expected to earn US$600mn if it manages to sell the Lipitor generic, exclusively for six months. (BS)
Kingfisher Airlines, which was supposed to pay at least its interest dues to lenders by November 30, has failed to do so rendering the account a potential non-performing asset for banks. (BL)
Sensex climbs despite dismal GDP data
Indian markets closed with decent gains at the end of a choppy session, as investors hoped that the RBI will support growth going forward by pausing its aggressive monetary tightening.
For a change, the key indices managed to shrug off the political stalemate in parliament and the ongoing war of words on FDI in retail. Not only that, they also ignored the general weakness in the overseas markets and drop in the rupee versus the dollar.
The GDP data was the main highlight of the day. The markets sort of heaved a sigh of relief that Q2 economic growth didn’t come below estimates. India’s economy grew by 6.9%, the weakest in two years, and lower than 7.7% in Q1. India’s GDP growth in the year-ago period was at 8.4%. The Finance Minister and his chief economic advisor expressed disappointment as did Moody’s. But, the key indices still managed to advance modestly.
Right Said Fed!
"To ease another's heartache is to forget one's own." - Abraham Lincoln.
Brace for a gap-up opening. No, nothing has changed on the domestic front – things continue to be quite bleak. But a coordinated move by world’s top central banks to ease market tension has sent stocks soaring world over.
‘You’re my mate and I will stand by you’ is what the Federal Reserve and five other central banks seem to be singing to one another as they got their act together to make it cheaper for banks around the world to borrow US dollars - a staple of global financial transactions.
Bullions applaud central bank's move to boost liquidity
For November, gold gains but silver drops
Precious metals ended higher on Wednesday, 30 November 2011 at Comex. Other than a weak dollar, stocks and commodities worldwide applauded news that the Federal Reserve and five other central banks together moved to ease the flow of funds to banks hit by Europe's debt crisis.
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.
Crude prices at two week highs
More than expected build up in crude stockpiles keep the rise under check
Crude prices ended at highest level in almost two weeks' time on Wednesday, 30 November at Nymex. Other than a weak dollar, stocks and commodities worldwide applauded news that the Federal Reserve and five other central banks together moved to ease the flow of funds to banks hit by Europe's debt crisis. Market also was boosted as traders reacted to news that officials in China have lowered the reserve requirement for the country's banks.
But the weekly inventory report from energy department showing more than expected buildup in crude inventories for last week put a check on the price rise.
Market may surge on central banks liquidity move; food inflation data eyed
The market is set for a strong start as global stocks rallied after the world's six major central banks moved to tame a liquidity crunch for European banks by providing cheaper dollar funding. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a jump of 158 points at the opening bell.
On the macro front, the government will today, 1 December 2011, will unveil data on some wholesale price indices viz. the food price index, the primary articles index and the fuel price index for the year through 19 November 2011.
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