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Monday, January 09, 2012

India Strategies - Jan 9 2012

India Strategies - Jan 9 2012

Volatile markets end in red

The Indian markets closed the volatile session in the negative terrain, with the Sensex down by 34 points and the Nifty down by 4 points.

Headlines for the day

Sugar companies surge as govt to allow more exports

Fertiliser stocks soar on buzz of subsidy reduction

GMR Infra to collect airport development fees in Maldives; stock soars

Pratibha gains after receiving order worth Rs772 crore

Coal India falls as PIL filed against new pricing in WB

BSE Small-Cap, Mid-Cap indices edge higher

Key benchmark indices registered small losses to reach one-week closing lows on expectations of weak Q3 results. Nonetheless, the market came off intraday lows. The barometer index, BSE Sensex, lost 34.08 points or 0.22%, up about 135 points from the day's low and off close to 55 points from the day's high. Index heavyweight Reliance Industries (RIL) edged lower. Pharma stocks extended recent gains. IT stocks were mixed. Capital goods and realty stocks reversed initial losses. Power stocks gained. The market breadth was strong. The BSE Small-Cap index rose for the eighth day in a row. The BSE Mid-Cap index rose for the second day in a row.

The Sensex has jumped 359.80 points or 2.32% so far in this month. From a 52-week high of 19,811.14 on 6 April 2011, the Sensex has lost 3,996.42 points or 20.17%. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 678.86 points or 4.48%.

Daily News Roundup - Jan 9 2012

State-run Northern Coalfields has agreed to surrender land required to mine two blocks attached to the Sasan ultra mega power plant to Reliance Power giving company the benefit of over Rs60bn over the life of the venture. (ET)

Sterlite Industries will offer to buy the government’s 49% equity share in group company Balco at a mutually-agreed price outside an earlier call option agreement. (ET)

Finance Ministry may infuse Rs14bn into Indian Overseas Bank to help it maintain Tier-I capital of 8% by March-end 2012. (BL)

Weak trend across Asia; stick to your goals

In the absence of clearly-defined goals, we become strangely loyal to performing daily trivia until ultimately we become enslaved by it. - Robert Heinlein.

It’s just another usual Monday. The weak trend across Asia is set to subdue the opening. Japanese markets are shut today. We may have managed to sail through the first week of 2012 reasonably well but the year itself is likely to be a challenging one especially the first half.

Indian indices were more or less unchanged in Saturday’s special one-and-a-half-hour session. This week is crucial as the Government will announce the latest IIP and inflation data. Also, the Q3 earnings season will kick off in the right earnest. Infosys and HDFC will release their numbers on Thursday.

Markets may open lower on Europe debt concerns

The Indian markets may begin a new week on a negative note led by losses in the Asian region as Europe debt jitters overshadowed signs of vigor in the US economy.

Headlines for the day:

Mundra UMPP's first 800MW unit starts production.

FIIs invest Rs6,500 crore in first week of New Year.

Kingfisher Airlines (KFA) may trim fleet size in difficult times.

NTPC plans to foray into power distribution.

Real estate firms drop overseas plans, to stay grounded in India.

Punjab National Bank (PNB) to rope in Boston Consulting Group for revamping operations.

Gail to replace JP Associates in Sensex from today

Events for the day

Goodwill Hospital & Research Centre IPO closes today

Crude prices end little lower

Better than expected job data keep losses under check

Crude prices ended lower once again on Friday, 06 January 2012 at Nymex. Strong dollar and lingering European debt crisis pushed prices lower. But losses were kept under check following a better than expected job report from the Labor Department on Friday. But prices registered weekly gains.

Light and sweet crude for February delivery fell $0.25 (0.3%) to $101.56 a barrel on the New York Mercantile Exchange on Friday. It rose to a high of $102.8 during intra day trading. For the week, crude gained 2.8%. For the year 2011, crude futures gained 8.2%.

Copper ends marginally higher

Copper stays steady for second consecutive day

Copper prices ended marginally higher on Friday, 06 January 2012 at Comex. Prices remained steady as a strong dollar and positive economic data at Wall Street negated each others' effects once again for the second straight day.

Copper for March delivery ended higher by 1 cent (0.3%) at $3.44 a pound at Comex on Friday. Prices lost 0.2% on a weekly basis. For the year 2011, copper shed 23% following a 30% increase in 2010 and a 140% jump in 2009, boosted by surging demand from China's manufacturers. China accounts for 40% of the world's refined copper consumption.

SGX Nifty Live Update - Jan 9 2012

4742.25 -39.00 (-0.82%)