Daily News Roundup - Oct 23 2012

Within two months of cutting rates on home and auto loans by 25-50 basis points, the State Bank of India is seeing a major growth in these segments. While home loan applications have nearly tripled, demand for auto loans has risen four-fold. (ET) L&T Finance Holdings Limited said it has acquired Family Credit, a non-banking finance company promoted by France's Societe Generale Consumer, for Rs1.2bn. (ET) Hero MotoCorp is going all out to cash in on the festive season and has tied up with HDFC Bank to offer financing at 6.99 % across its entire range of products. (ET)

Sensex scales back after weak start

Just when we thought that markets were going to witness a sharp decline on account of weakness in the global markets, the Indian equity indices defied the weakness and ended with smart gains on Monday. The movement throughout the day was however quite choppy ahead of the F&O expiry, as the benchmark indices were mostly traded in narrow trading range. The Capital Goods, Pharma, Banking and the IT stocks were among the top gainers which saw the NSE Nifty end above the 5700 mark. Even the Small-Cap index ended with modest gains. However, the BSE Mid-Cap index ended in the red. Among the other major losers were the FMCG, Consumer Durables and the Metals stocks. Finally, the BSE Sensex closed at 18,793, up 111 points over the previous close. It had earlier touched a day's high of 18,809 and a day's low of 18,600. It opened at 18,655.

Results remain in focus

That action is best which procures the greatest happiness. - Francis Hutcheson The market action on Monday indeed brought happiness as indices staged a smart recovery after opening down. The Nifty remains in a tight range of 5650-5740 and is looking to break out either way for the last 10 trading sessions. A flat opening is in the offing. The main US indices ended almost unchanged while the Asian markets are mostly a tad higher. With Wednesday being a trading holiday on account of Dussehra investors may adopt a guarded approach. Companies like Cairn India and Idea Cellular could be in focus as their results rolled in after market hours.

Precious metals end moderately higher

Bullions rise for first time in three sessions Bullion metals ended higher for first time in three days at Comex on Monday, 22 October 2012. Prices rose as traders awaited the outcome an upcoming Federal Reserve meeting on U.S. monetary policy later this week. Prices also rose after the dollar slipped earlier during the day. Gold for December delivery on Monday rose $2.3, or 0.1%, to $1,726.3 an ounce on the Comex division of the New York Mercantile Exchange. Prices rose to a high of $1,730 during intra day trading. Prices closed 2% lower last week. It was second consecutive weekly loss for the yellow metal.

Market may open slightly lower

Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 6.50 points at the opening bell. The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month October 2012 series to November 2012 series. The near-month October 2012 derivatives expire on Thursday, 25 October 2012. The stock market remains closed tomorrow, 24 October 2012, on account of Dussera. Cairn India said after trading hours on Monday, 22 October 2012, its consolidated profit after tax (PAT) jumped 204.4% to Rs 2322.20 crore on 67.5% growth in revenue to Rs 4443.10 crore in Q2 September 2012 over Q2 September 2011. PAT excluding foreign exchange transactions jumped 1239.65% to Rs 3108 crore in Q2 September 2012 over Q2 September 2011. Earnings before interest, taxation, deprecation and amortization (EBITDA) jumped 65.9% to Rs 3425.30 crore in Q2 September 2012 over Q2 September 2011.