Daily News Roundup - Aug 7 2012

Tata Teleservices has slipped on performance parameters it promised to Japan’s NTT DoCoMo, giving the foreign investor an option to either exit the business or increase its stake in the JV. (ET) Aurobindo Pharma and Glenmark said they have received approval from the US health regulator to manufacture and market generic montelukast sodium tablets used for treating asthma and allergies. (ET) Ranbaxy Laboratories may have forgone the launch of its generic version of blockbuster sleep disorder drug Provigil during a lucrative six-month marketing exclusivity period as part of its regulatory settlement with US authorities, say analysts who estimate that this might have cost the drugmaker US$50-100mn in revenues. (ET)

Sensex cracks double ton…RIL spurts 5%

Indian stocks kicked off a new trading week with solid gains, with the NSE Nifty closing in on the 5,300 milestone. The BSE Sensex rose by over 200 points. The Nifty and the Sensex both advanced by ~1% each. However, the broader indices could not quite capitalise on the good early start and retreated from the day’s highs. The market breadth was still positive. Oil & Gas, Auto, Banking, Capital Goods and Realty sector indices paced the rally today while sectors such as IT and FMCG were the biggest laggards.

Finding remedies

Science may have found a cure for most evils, but it has found no remedy for the worst of them all-the apathy of human beings. - Helen Keller. Finance Minister P. Chidambaram has promised corrective and remedial measures to revive confidence in the sputtering Indian economy. High on the FM’s agenda are fiscal discipline and clarity on controversial tax proposals. Does that mean hike in ‘regulated’ fuel prices? Does it mean dilution of GAAR and amicable settlement with Vodafone? There is a wide difference between rhetoric and action. Therefore, one will have to wait and see what FM & Co. can deliver in the coming weeks. Bear in mind that some of the Centre’s proposals have met with stiff political resistance.

Market may extend gains on firm Asian stocks

The market may extend Monday's (6 August 2012) gains on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 6 points at the opening bell. Asian stocks advanced Tuesday, extending steep gains made in the previous session, amid fresh hope for European action to support the region's weaker economies. Among corporate news, DLF's consolidated net profit declined 18.29% to Rs 292.79 crore on 6.96% decline in total income to Rs 2328.85 crore in Q1 June 2012 over Q1 June 2011. GMR Infrastructure said that at the board meeting of the company scheduled to be held on August 09, 2012, the board will also consider raising of funds through issue of equity shares or convertible debentures or Foreign Currency Convertible Bonds or any other securities.

Market may continue to rise on global support

The Indian markets are set to begin trade on a positive note led by positive global cues. SGX Nifty is trading 8.50 points higher. Events for the day: Results: Aurobindo Pharma, NHPC, Tata Chemicals, United Breweries. Headlines for the day: RIL agrees to financial audit by CAG. Pipavav bags two international orders worth Rs1,192 crore. Construction industry outlook stable in H2, says Fitch. Court allows Telenor JV to seek interest for assets.

Market may continue to rise on global support

The Indian markets are set to begin trade on a positive note led by positive global cues. SGX Nifty is trading 8.50 points higher. Events for the day: Results: Aurobindo Pharma, NHPC, Tata Chemicals, United Breweries. Headlines for the day: RIL agrees to financial audit by CAG. Pipavav bags two international orders worth Rs1,192 crore. Construction industry outlook stable in H2, says Fitch. Court allows Telenor JV to seek interest for assets.

RIL gains in value and volume

Key benchmark indices surged to scale their highest closing level in nearly four weeks, with investor sentiment boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 3 August 2012. Comments from Union Finance Minister P Chidambaram that he intends to shortly unveil a path of fiscal consolidation aided gains on the domestic bourses. Strong US economic data released on Friday, 3 August 2012, and expectations that the European Central Bank will step in to buy euro-zone government bonds in time to address the long-running euro-zone debt crisis, also aided gains on the domestic bourses. US is the world's biggest economy. The barometer index, BSE Sensex, jumped 215.03 points or 1.25%, off close to 40 points from the day's high and up over 100 points from the day's low. The market breadth was positive.