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Monday, July 02, 2012

Markets open flat on first day of July series

The Indian markets started the first session of the July month on a flat note, following quiet trade in Asian markets after a sharp rally on Friday due to positive developments at European Union Summit. Talking about individual stocks, TVS Motor declined as its sales for June fell 7.5% to 1.65 lakh units year-on-year. Kingfisher Airlines declined on reports that its pilots are on strike over non- payment of wages. Arvind gained as its workers strike at factory called off. Company will take back all the terminated employees. HCC rose as board of directors approved debt restructuring. Atul jumped on reports that company may sell 20% stake in aromatic unit. BPCL dipped on rising crude oil prices. WTI crude shot up 9.4% in a single session at around On a currency front, Indian rupee was moving around 55.55 to the US dollar. Out of 13 sectoral indices, the gainers are - BSE Realty up by 1.54%, BSE CD up by 1.19% and BSE CG up by 0.82%. Losers - BSE Oil & Gas fell by 0.50%, BSE Auto fell by 0.34% and BSE IT fell by 0.25%. At 10.16 am, the Sensex was trading at 17,418, 11 points lower and the Nifty was trading at 5,278, down by 2 points.

Daily News Roundup - July 2 2012

GVK Power & Infrastructure Limited said the financial closure for its US$10-bn Alpha coal and rail project in Queensland, Australia, was expected by March 2013, as opposed to the original deadline of December 2012. (BS) Steel Authority of India (SAIL) will invest Rs.30bn to quadruple capacity of its Gua iron ore mine in Jharkhand to 10 million tonnes per annum (mtpa) and set up a 4 mtpa pelletisation plant. (BS) Reliance Industries (RIL) has decided to reopen over 50 fuel pumps in Gujarat. (BS) Allahabad Bank is planning to increase its footprint in South India by opening 100 of the 250 branches proposed for the current year in the south. (BS)

Sensex soars 2.5%...Nifty ends above 5250

The key Indian equity indices sky rocketed on Friday after the Government sought to ease concerns over controversial GAAR provisions and the EU leaders gathered in Brussels proposed a common financial supervisor. Another positive development was that petrol prices have been scaled down by ~Rs3 per litre. Any further positive news on the policy front could keep the momentum going for a while. Problems confronting the eurozone remain the biggest risk though along with slow progress of southwest monsoon. Market participants also welcomed appreciation in the rupee and improvement in the core sector growth in May. The Indian Rupee was seen rising sharply against the US Dollar on optimism of fresh FII inflows in to the Indian markets. The rupee was trading above the 56 mark at Rs. 55.9150 per US Dollar.

Weather it out

We'll weather the weather, Whatever the weather, Whether we like it or not – Anonymous. The raingods seem to be in a rather uncharitable mood this year if the shaky start to the southwest monsoon is anything to go by. Brace for some rougher ride on the bourses if monsoon doesn’t look up in the next few days. After all, monsoon is likely to be the biggest headache in the near term, be it for the Government, farmers, consumers or companies. July is supposed to be a crucial month for various summer crops (kharif). A normal southwest monsoon also helps in the winter farming season (rabi) as it builds up the reservoirs across the nation.

VA Tech Wabag wins orders worth Rs. 1bn (~€14mn)

VA Tech Wabag, a leading global player in water and wastewater management announces the receipt of various orders from our overseas operations. Revamp of Waste Water Treatment plant. Choutrana in Tunisia: WABAG bagged an order from ONAS for major revamp of its Waste Water Treatment Plant at Choutrana, Tunisia. The project is partly financed by Swiss loan. The scope comprises replacement of major equipments and control systems including repairs. O&M Contract for Waste Water Management for the city of Adana in Turkey:

Crude soars more than 9% on a single session on Friday

Prices end 18% lower on a quarterly basis Crude prices ended substantially higher on Friday, 29 June 2012 at Nymex. Prices took a big leap and witnessed the largest one day gains in terms of percentage since March 2009. Prices rose as the dollar dropped substantially and the latest euro-zone rescue deal boosted a broad range of commodity and financial markets. Light and sweet crude for August delivery rose $7.27 (9.4%) to $84.96 a barrel on the New York Mercantile Exchange on Friday. Oil gained 6.5% on the week. On the month, however, prices declined 1.8%, and the quarterly picture was yet darker. March-to-June losses reached 18%.

Market may extend recent strong rally on firm Asian stocks

The market may extend recent strong rally on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 15.50 points at the opening bell. Among corporate news, M&M's sales rose 16% to 41322 units, in June 2012 over June 2011. The Passenger Vehicles segment (which includes the UVs and Verito) has registered a growth of 23%, having sold 19792 units in June 2012, as against 16053 units during June 2011. The company announced a 24% rise in its auto sales numbers, which stood at 126029 units during the first quarter of FY 2012-13 as against 101997 during the first quarter of FY 2011-12. Commenting on the numbers Pravin Shah, Chief Executive, Automotive Division, M&M. said, "We are happy to have achieved a growth of 24% in the first quarter of FY 13 given the pressures and various uncertainties which the auto industry is currently facing. We expect the demand for utility vehicles industry to continue during the current financial year. Our opinion in the current industry scenario is to not have any major changes in the policies, including fuel prices, in order to create an overall positive sentiment."

SGX Nifty Live Update - July 2 2012

5317.75 +22.25 (+0.42%)