Search Now


Monday, April 23, 2012

Reliance Industries Ltd

 Reliance Industries Ltd

Sensex sinks 277 points on global weakness

The Indian markets ended nearly 2% down on the first day of the week due to weak global cues. The Sensex declined 277 points and the Nifty ended 90 points lower. Major Headlines: SBI revision in retail term deposit interest rates DLF drops on Sensex exclusion Telecom stocks plunge on TRAI regulations

SBI April 2012 futures at discount

F&O turnover surges Nifty May 2012 futures were at 5220, at a premium of 19.40 points over spot closing of 5200.60. Nifty April 2012 futures were at 5184, at a discount of 16.60 points compared to spot closing. Turnover on NSE's futures & options (F&O) segment surged to Rs 163080.44 crore from Rs 144561.78 crore on Friday, 20 April 2012. State Bank of India (SBI) April 2012 futures were at 2183, at a discount compared to spot closing of 2186. Tata Motors April 2012 futures were at 309.30, near spot closing of 309. Infosys April 2012 futures were at 2311.50, at a premium compared to spot closing of 2307. In the cash market, the S&P CNX Nifty shed 90.25 points or 1.71% to settle at 5,200.60, its lowest closing level since 29 March 2012. The near-month April 2012 derivatives contracts expire on Thursday, 26 April 2012.

Tribhovandas Bhimji Zaveri IPO Analysis

With a track record of 145 years, Tribhovandas Bhimji Zaveri (TBZL) is a well-known and trusted jewellery retailer in India, particularly in Maharashtra. Started as a partnership firm initially, it became public limited company in July 2007. Currently, it has three promoters: Shrikant Zaveri, Binaisha Zaveri and Raashi Zaveri. Having registered office at Zaveri Bazaar, famously known for the gold jewellery business in the Indian financial hub, Mumbai, the company mainly sells gold and diamond-studded jewellery along with other products like platinum and Jadau jewellery across its showrooms. To cater to the changing taste across regions, it offers wide variety of jewellery from regions across India and also offers jewellery from various parts of world such as Italy, Turkey and Thailand. The company retails its jewellery through 14 showrooms with total carpet area of 48,818 sq ft, in 10 cities. Of the 14 show rooms, 11 are large format high street show rooms with carpet area of 3,000 sq ft and more and the remaining three are small format high street showrooms with carpet area of 1,000-3,000 sq ft. Currently, the company has six showrooms in Maharashtra, three in Andhra Pradesh, three in Gujarat, and one each in Kerala and Madhya Pradesh. Twelve out of 14 show rooms are under lease. Gold jewellery is the major contributor to revenue. In the nine months of fiscal ended March 2012 (9M of FY2012), gold jewellery constituted 72.48% of the total revenue. As a strategy to improve the margin, the company plans to increase share of diamond jewellery revenues in total revenue. The share of diamond- studded jewellery in total revenue increased from 21.62% in FY 2010 to 22.08% in FY 2011 and to 25.20% in 9M of FY2012. With the increase in scale of operations through expansion of retail outlets, the profitability has improved substantially in the past three years. The net profit margin has doubled from a mere 1.7% in FY 2008 to 3.4% in FY 2011 and has further increased to 4.5% in 9M of FY 2012. The marketing activities are focused on generate footfalls in showrooms throughout the year with launch of bangles and chain festivals, Oodiyanam festivals, advance payment scheme called, "Kalpavruksha" (paying advance amount throughout a plan period)

Nifty hits 3-1/2-week closing low

Key benchmark indices fell for the second straight day as weak European stocks and lower US index futures hurt sentiment. The 50-unit S&P CNX Nifty reached its lowest closing level in 3-1/2 weeks. The barometer index, BSE Sensex, hit its lowest closing level in almost 1-1/2 weeks. The Sensex shed 277.16 points or 1.6%, off close to 350 points from the day's high and up about 40 points from the day's low. The market breadth was weak. All the 13 sectoral indices on BSE were in the red. From a recent high of 17,503.71 on Thursday, 19 April 2012, the Sensex declined 407.03 points or 2.32% in two trading sessions. The Sensex has declined 307.52 points or 1.76% so far in April 2012 (till 23 April 2012). The index has surged 1,641.76 points or 10.62% in calendar 2012 so far (till 23 April 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 1,960.82 points or 12.95%. From a 52-week high of 19,697.49 on 25 April 2011, the Sensex has lost 2,600.81 points or 13.2%.

Tribovandas Bhimji Zaveri Grey Market Premiums

Company Name
Offer Price
(Rs. 1 Lac
(Rs. 2 Lac
Tribovandas Bhimji Zaveri
120 to 126
4 to 5

Daily News Roundup - Apr 23 2012

Vedanta Aluminium's Lanjigarh project in Odisha may become another Kudankulam, as environment activists belonging to foreign non-Government organisations (NGO) have suddenly surfaced to show their concern.(BL) High costs, uncertain yield, less availability of wasteland are some of the reasons that have compelled Indian Oil Corporation (IOC) to review its biofuel business strategy.(BL) JSPL will invest over Rs.100bn in 2012-13 to part-fund its capex plan that aims to ramp up its steel making capacity to 18 million tonnes in five years.(BL) Construction of three railway lines for coal evacuation in Chhattisgarh, Jharkhand and Orissa will be a top priority for Coal India Ltd.(BL)

Cautious start!

"Things that are done, it is needless to speak about; things that are past it is needless to blame." - Confucius. What led to Friday’s freaky afternoon fall remains largely a mystery with the NSE swearing by the robustness of its systems. The sudden and swift selloff could not prevent the Indian indices from notching modest gains though. Another big event on Friday was the RIL’s Q4 earnings. While the headline PAT figure was in line with estimates, the problems for the energy and petrochemicals major are far from over. The RIL stock could remain under pressure for a while till there are visible signs of improvement in core business. The start today is likely to be more or less flattish. Asian markets are mostly trending lower, despite IMF bolstering its firepower for dealing with unforeseen accidents. Sentiment might improve after China’s so-called ‘flash’ manufacturing PMI climbed in April from March. However, the key gauge still shows contraction.

Mixed finish for bullions

Gold gains but silver drops Gold futures at Comex edged higher on Friday, 20 April 2012 underpinned by a weaker dollar. For the most part prices traded in narrow range lacking catalysts. Gold for June delivery advanced $1.40, or 0.1%, to settle at $1,642.80 an ounce on the Comex division of the New York Mercantile Exchange on Friday. On the week, gold lost 1%. May silver slipped 13 cents, or 0.4%, to end at $31.65 an ounce on Friday. On the week, however, silver gained 0.8%.

Crude gains for first time in three days

Prices register minor weekly gains Crude futures ended higher on Friday, 20 April 2012 at Nymex breaking a two-day losing streak and notching modest weekly gains as the dollar fell on an upbeat German economic survey and U.S. corporate news spurred hopes for more oil demand. Lighty and sweet crude for delivery in May rose 78 cents, or 0.8%, to $103.05 a barrel on the New York Mercantile Exchange. The contract expired at the end of floor trading Friday. On the week, prices climbed 0.2%.

Market may open lower on weak Asian stocks

The market may open lower on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 13.50 points at the opening bell. IT major, Tata Consultancy Services (TCS) unveils FY 2012 results today, 23 April 2012. Index heavyweight Reliance Industries (RIL) after market hours Friday, 20 April 2012, reported 21.2% fall in net profit to Rs 4236 crore on 16.7% rise in turnover to Rs 87833 crore in Q4 March 2012 over Q4 March 2011. The company reported GRM (gross refining margin), the difference between the price of petroleum products and crude oil, of $7.6 per barrel in Q4 March 2012 compared with GRM of $6.8 per barrel in Q3 December 2011 and $9.2 per barrel in Q4 March 2011. Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, RIL said: "Our businesses have delivered industry leading performances. This is a reflection of the quality of our assets and growing demand for our products and services in India and internationally. We have created a strong foundation for future growth and are investing in our core upstream and petrochemical businesses in India. Response to our organized retail business has been very encouraging and we continue to expand our footprint by building more stores across verticals, formats and geographies. We remain committed towards providing world class, high speed wireless data services through the launch of our broadband access business."

Markets may see subdued opening

Markets may see a subdued opening led by negative global cues and on account of SGX Nifty trading 10 points lower Headlines for the day: Govt allows 3 airlines to directly import 12.65 lakh kl ATF. JSPL to spend over Rs 10,000 cr on capex in FY13. Petrol pump dealers defer strike, govt to consider demands. Indian Oil Corporation (IOC), NOC in marketing agreement. GMR sells Rs179 crore worth of shares in Karur Vysya Bank.

SGX Nifty Live Update - Apr 23 2012

5331.75 +23.25 (+0.44%)

Hindustan Zinc, Ambuja Cements, ACC, IndusInd Bank; Updates - Insurance, Strategy

 Hindustan Zinc, Ambuja Cements, ACC, IndusInd Bank; Updates - Insurance, Strategy