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Friday, June 28, 2013
Strong start likely on firm Asian stocks
The market is geared for a firm opening on positive Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could jump 104 points at the opening bell. Asian stocks edged higher tracking an overnight rise in global equities on easing fears of an early end to US monetary stimulus. Reliance Industries (RIL), ONGC and Oil India may be in focus after the government on Thursday almost doubled the price at which natural gas will be sold to producers of power, fertilizer, minerals and steel. The price of gas could go up to $8.4 per million metric British thermal units (mmBtu), effective 1 April next year, from the current domestic prices that range between $3.5 and $5.73 per mmBtu. Bajaj Auto may be in spotlight. The company had after market hours on Tuesday, 25 June 2013, said workmen at its Chakan plant in Pune have stopped coming to work. Bajaj Auto said the workers had earlier given a notice for a stoppage of work at the plant from the morning shift today, 28 June 2013. The reason for the strike was that management had refused to concede their demand that all the workmen working in Bajaj Auto should each be given an option to subscribe to 500 equity shares of the company at a discounted price of Re 1 per share, Bajaj Auto added. The workmen have, however, stopped coming to the Chakan plant from 25 June 2013, itself, without assigning any reason for this stoppage, the company said in a filing. HDFC Bank reportedly said that income tax sleuths had conducted an enquiry on its following the Cobrapost expose. Bajaj Finserv said it has submitted its application to Reserve Bank of India on 26 June 2013 for a licence to commence banking business in terms of section 22 of the Banking Companies Act, 1949. It is proposed to do this by converting its subsidiary Bajaj Finance into a bank in terms of RBI guidelines for licensing of new banks in the private sector dated 22 February 2013. Key benchmark indices surged on Thursday, 27 June 2013, as the battered Indian rupee recovered against the dollar after the latest data showed that India's current account deficit (CAD) moderated sharply to 3.6% of GDP in Q4 of March 2013 from a historically high level of 6.7% of GDP in Q3 December 2012. The S&P BSE Sensex jumped 323.83 points or 1.75% to settle at 18,875.95, its highest closing level since 19 June 2013. Foreign institutional investors (FIIs) sold shares worth a net Rs 1,043.27 crore on Thursday, 27 June 2013, as per provisional data from the stock exchanges. Asian stocks edged higher tracking an overnight rise in global equities on easing fears of an early end to US monetary stimulus. Key benchmark indices in Hong Kong, Indonesia, Taiwan, Singapore, China and South Korea were up 0.57% to 1.99%. Japanese Nikkei 225 index shot higher by 3.14% as a weakened yen combined with upbeat industrial-production data to lifted sentiment. Japan's industrial production showed a surprise jump in May, while retail sales for the same month also gained, though the largest retailers saw a decline. Industrial output rose 2% during the last month, the Ministry of Economy, Trade and Industry said Friday, accelerating from a 0.9% gain in April. US stocks surged for a third session on Thursday on upbeat economic data and reiterations from Federal Reserve officials that monetary policy depends on the economic outlook. The US Department of Labor reported the number of Americans filing for state unemployment benefits fell by 9,000 to 346,000 last week. Also the National Association of Realtors reported that pending home sales jumped to a six-year high in May. Federal Reserve Chairman Ben Bernanke on 19 June 2013 said that the central bank may taper the pace of its bond purchases, currently set at $85 billion a month, as early as this year if the economy continues to improve in line with its forecasts.
STOCKS TO WATCH
ONGC and Reliance Industries will see an uptick as the Cabinet Committee for Economic Affairs approved the proposal to hike the natural gas price to USD 8.4 per mmbtu from April 1, 2014. On the other hand, power and fertiliser companies will react negatively to this development. National Fertiliser Ltd (NFL) will see some price action as CCEA approved disinvestment of 7.6 per cent of government stake. Airtel may see some red after the company lost to Telenor in the Myanmar telecom licence race. Indian Hotels may see some negative price action as the company may lose first right of refusal on Taj Mansingh hotel.
Sensex, Nifty attain over one-week closing high
Key benchmark indices surged as the battered Indian rupee recovered against the dollar after the latest data showed that India's current account deficit (CAD) moderated sharply to 3.6% of GDP in Q4 of March 2013 from a historically high level of 6.7% of GDP in Q3 December 2012. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, attained over one-week closing high. The Sensex jumped 323.83 points or 1.75%, up close to 190 points from the day's low and off about 50 points from the day's high. The market breadth, indicating the overall health of the market, was positive. The rupee edged higher, backing off from a record low of 60.76 hit on Wednesday, 27 June 2013, as the country's current account deficit (CAD) narrowed in the January-March quarter, easing some concerns about the funding of the deficit. The rupee was hovering at 60.24 versus the dollar, higher than Wednesday's close of 60.7150/7250. The Sensex has lost 884.35 points or 4.47% in this month so far (till 27 June 2013). The Sensex has fallen 550.76 points or 2.83% in calendar 2013 so far (till 27 June 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 1,567.67 points or 7.66%. From a 52-week low of 16,598.48 on 26 July 2012, the Sensex has surged 2,277.47 points or 13.72%. Coming back to today's trade, Reliance Industries (RIL), ONGC and Oil India edged higher on reports that a meeting of Cabinet Committee on Economic Affairs (CCEA) will be held today, 27 June 2013, to consider a proposal for a steep hike in natural gas prices. IT and pharma stocks gained on a recent steep slide in rupee against the dollar. Index heavyweight and cigarette major ITC slipped in volatile trade. NTPC reversed initial gains in volatile trade. The market was volatile as traders rolled over positions in the futures & options (F&O) segment from the near month June 2013 series to July 2013 series. The June 2013 F&O contracts expired today, 27 June 2013. Key benchmark indices surged in early trade on firm Asian stocks. A bout of volatility was witnessed as key benchmark indices regained strength after paring initial gains. Key benchmark indices held firm in mid-morning trade. Key benchmark indices pared gains to register intraday low in early afternoon trade. The Sensex regained strength in afternoon trade. The market extended intraday gain to strike one-week high in mid-afternoon trade. The S&P BSE Sensex jumped 323.83 points or 1.75% to settle at 18,875.95, its highest closing level since 19 June 2013. The index jumped 373.63 points at the day's high of 18,925.75 in late trade. The index rose 136.16 points at the day's low of 18,688.28 in early afternoon trade. The CNX Nifty advanced 93.65 points or 1.68% to settle at 5,682.35, its highest closing level since 19 June 2013. The index hit a high of 5,699.35 and a low of 5,630.95 in intraday trade. The BSE Mid-Cap index rose 0.26% and the BSE Small-Cap index gained 0.32%. Both these indices underperformed the Sensex. The BSE Oil & Gas index (up 3.22%), BSE IT index (up 3.15%), BSE Teck index (up 2.7%), BSE Healthcare index (up 2.49%) and BSE Realty index (up 1.8%), outperformed the Sensex. The BSE Consumer Durables index (down 1.04%), BSE Capital Goods index (down 0.04%), BSE FMCG index (up 0.11%), BSE Power index (up 0.23%), BSE Auto index (up 0.43%), BSE Metal index (up 0.44%), BSE PSU index (up 0.83%), and BSE Bankex (up 1.5%), underperformed the Sensex. The total turnover on BSE amounted to Rs 1576 crore, higher than Rs 1491 crore on Wednesday, 26 June 2013. The market breadth, indicating the overall health of the market, was positive. On BSE, 1,210 shares rose and 1,112 shares declined. A total of 137 shares were unchanged. Among the 30-share Sensex pack, 21 stocks gained and the rest of them declined. Reliance Industries (RIL), ONGC and Oil India edged higher on reports that a meeting of Cabinet Committee on Economic Affairs (CCEA) will be held today, 27 June 2013, to consider a proposal for a steep hike in natural gas prices. Reliance Industries (RIL) gained 3.48% at Rs 830.45. The stock hit a high of Rs 835.55 and low of Rs 814.35. Oil India (up 1.7%) and ONGC (up 4.14%) edged higher. The CCEA last week deferred a decision on a proposal to hike natural gas prices as Oil Minister M Veerappa Moily was away on an official tour. The oil ministry has proposed an increase in gas prices to $6.775 million British thermal unit (mbtu) from current $4.2 mbtu. The Oil Ministry has proposed raising gas price for state-run firms immediately and that for Reliance Industries (RIL) from April 2014 when it is contractually due. Cairn India rose 5.07% as US crude oil futures rose for a fourth straight day as US refiners boosted crude processing to the highest rate this year and industrial profits increased in China. US crude oil futures for August 2013 delivery were up 23 cents a barrel at $95.73 a barrel in the electronic trading today, 27 June 2013. The contract had risen 18 cents or 0.18% to settle at $95.50 a barrel on the New York Mercantile Exchange on Wednesday, 26 June 2013, its highest closing level since 19 June 2013. Higher crude oil prices will result in higher realizations from crude sales for oil exploration firms like Cairn India. IT stocks rose on a recent steep slide in rupee against the dollar. TCS (up 3.85%), HCL Technologies (up 3.69%), and Infosys (up 3.31%), edged higher. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. Tech Mahindra rose 3.6% and Mahindra Satyam gained 4.13%. The two IT companies on 25 June 2013 announced the formal amalgamation of Mahindra Satyam with Tech Mahindra. The merged entity is amongst the top 5 Indian IT services companies, with revenue of $2.7 billion, a team of 84,000 professionals servicing 540 customers across 46 countries, the two companies said. The board of directors of Tech Mahindra at its meeting held on 25 June 2013 fixed 5 July 2013 as the record date for determining the shareholders of Mahindra Satyam who would be entitled to receive shares Tech Mahindra as per the amalgamation scheme. The swap ratio for merger has been fixed at two shares of Tech Mahindra for every 17 shares held in Mahindra Satyam. Wipro shed 0.22% as the stock turned ex-dividend today, 27 June 2013, for final dividend of Rs 5 per share for the year ended 31 March 2013. Pharma stocks edged higher. Pharma companies are likely to benefit from the depreciation of rupee against the dollar as pharma firms derive substantial revenue from exports. Dr Reddy's Laboratories (up 3.72%) Sun Pharmaceutical Industries (up 3.54%), and Cipla (up 1.74%) gained. Ranbaxy Laboratories rose 1.7%. The Supreme Court of India on 25 June 2013, dismissed a public interest lawsuit against the company for allegedly manufacturing and selling substandard medicines due to lack of evidence against the company. NTPC reversed initial gains in volatile trade. The stock was off 0.53% to Rs 140.45. The stock rose as much as 1.26% at the day's high of Rs 143 in early trade. The company said after market hours on Wednesday, 26 June 2013, that the board of directors of the company at its meeting held on 25 June 2013 has accorded investment approval for the development of a 50 megawatts (MW) solar photo voltaic based project at Rajgarh, Madhya Pradesh at an appraised current project cost of Rs 346.42 crore. FMCG stocks gained on renewed buying. Dabur India (up 0.62%), Nestle India (up 0.34%), Marico (up 1.86%), Godrej Consumer Products (up 2.04%) and Colgate-Palmolive (India) (up 2.64%), gained. Hindustan Unilever rose 0.15% to Rs 589.20. Anglo-Dutch consumer goods major Unilever's open offer to raise its stake in Indian unit, which opened on 21 June 2013, closes on 4 July 2013. Unilever will buyback shares from minority shareholders at Rs 600 per share to hike its stake in Hindustan Unilever from 52.48% to up to 75%. Tata Global Beverages shed 2.25%. The stock turned ex-dividend today, 27 June 2013, for dividend of Rs 2.15 per share for the year ended 31 March 2013. Index heavyweight and cigarette major ITC shed 0.05% at Rs 322.85 in volatile trade. The stock hit a high of Rs 326.95 and low of Rs 317.55. Capital goods pivotals edged lower. L&T shed 0.27%. India's largest power equipment maker by capacity Bhel fell 0.37% to Rs 163.05. The stock hit 52-week low of Rs 162.10 in intraday trade today, 27 June 2013. Bank pivotals edged higher. ICICI Bank (up 0.56%), State Bank of India (up 0.68%) and HDFC Bank (up 3.42%), edged higher. South Indian Bank rose 3.09% after the Reserve Bank of India on Wednesday, 26 June 2013, withdrew restrictions placed on the purchase of its shares by foreign investors. The ceiling on investment by foreign institutional investors (FIIs) in South Indian Bank is 49%. Auto stocks were mixed. Bajaj Auto gained 2.9%. The stock had declined 0.66% in volatile trade on Wednesday. The company after market hours on Tuesday, 25 June 2013, said workmen at its Chakan plant in Pune have stopped coming to work. Bajaj Auto said the workers had earlier given a notice for a stoppage of work at the plant from the morning shift of 28 June 2013. The reason for the strike was that management had refused to concede their demand that all the workmen working in Bajaj Auto should each be given an option to subscribe to 500 equity shares of the company at a discounted price of Re 1 per share, Bajaj Auto added. The workmen have, however, stopped coming to the Chakan plant from 25 June 2013, itself, without assigning any reason for this stoppage, the company said in a filing. Hero MotoCorp rose 0.89%. Maruti Suzuki India shed 1.61%. M&M advanced 2.42%. Tata Motors dropped in volatile trade. The stock lost 1.35% at Rs 269.50. The scrip hit high of Rs 276.30 and low of Rs 263.10. Shares of Tata Motors have been on a downward journey, sliding 8.8% in seven trading days to Rs 273.20 on 26 June 2013 from a recent high of Rs 299.55 on 17 June 2013. Realty stocks were in demand on renewed buying. HDIL (up 6.52%), DLF (up 4.48%) and Unitech (up 1.01%), gained. Housing Development Finance Corporation (HDFC) rose 2.7%. The stock turned ex-dividend today, 27 June 2013, for dividend of Rs 12.50 per share for the year ended 31 March 2013. MMTC hit maximum permissible 5% lower circuit at Rs 108.25, also its 52-week low, with the stock extending recent steep slide triggered by government concluding the divestment of 9.33% stake in the firm at a huge discount to the stock's ruling market price. Shares of MMTC have slumped 48.81% in 11 trading sessions from a recent high of Rs 211.45 on 12 June 2013. On 13 June 2013, the Government of India (GoI) sold 9.33% stake in MMTC via Offer for Sale (OFS) through stock exchanges mechanism at an indicative price of Rs 60.86 per share, at a discount of 71.21% to the closing price of the stock of Rs 211.45 on 12 June 2013. The divestment was done to make the company compliant to the public shareholding requirements under the Securities Contract Regulations (Rules) (SCRR). Sebi has mandated minimum public shareholding of 10% for state-run firms by 8 August 2013. Post stake sale, the GoI holds 90% stake in MMTC. Neyveli Lignite Corporation (NLC) rose 0.73% in volatile trade. The company during market hours today, 27 June 2013, said it has received an intimation letter from the recognized unions and few other registered unions communicating their intention to go on an indefinite strike till the disinvestment proposal of NLC shares is withdrawn by Government of India. The Government of India (GoI) holds 93.56% stake in NLC (as per the shareholding pattern as on 31 March 2013). Market regulator Securities & Exchange Board of India (Sebi) has set a deadline of 8 August 2013 for all listed central public sector units to have a minimum 10% public shareholding. Shares of diamond jewellery maker Gitanjali Gems hit maximum permissible 10% lower circuit at Rs 262.75, also its 52-week low. The stock has witnessed a steep slide this week. Religare Enterprises tumbled 5.83% to Rs 319.90, with the stock reversing intraday gain. The stock had jumped 7.74% at the day's high of Rs 366 in early trade after the company said that US-based Customers Bancorp Inc. has agreed to invest $51 million in the company through combination of primary and secondary market investment. The announcement was made after market hours on Wednesday, 26 June 2013. The Reserve Bank of India (RBI) today, 27 June 2013, said that as per the preliminary data, India's current account deficit (CAD) moderated sharply to 3.6% of GDP in Q4 of March 2013 from a historically high level of 6.7% of GDP in Q3 December 2012 as trade deficit narrowed. The RBI said that non-oil non-gold component of imports showed a decline in Q4 March 2013, reflecting slowdown in domestic economic activity. Net invisibles recorded a decline of 7.7% in Q4 March 2013 as compared to a growth of 27.5% n Q4 March 2012 on account of decline in net services, transfers and income receipts. The CAD edged up to 4.8% of GDP in the year ended 31 March 2013 (FY 2013), from 4.2% of GDP in the year ended 31 March 2012 (FY 2012). Burgeoning trade deficit along with significant decline in invisible earnings caused widening of CAD in FY 2013, RBI said. The RBI released the Balance of Payment (BoP) data a day ahead of its release scheduled on Friday, 28 June 2013, after the rupee hit record low below 60 versus the dollar on Wednesday, 26 June 2013. Most European stocks edged lower in choppy trade on Thursday, 27 June 2013. Key benchmark indices in Germany and France fell by 0.03% to 0.05%. UK's FTSE 100 rose 0.2%. European finance ministers reached an agreement early Thursday on rules for winding down insolvent banks, inking a deal in which banks' shareholders, creditors and big depositors would take the first hit in the event of a bank crisis. The deal still needs legislative approval from the European Parliament. Asian stocks advanced on Thursday, 27 June 2013, on hopes that a downward revision to US first-quarter gross domestic product growth might delay the Federal Reserve's plans to reduce asset purchases. Key benchmark indices in Hong Kong, Indonesia, Taiwan, Singapore and Japan were up 0.5% to 2.96%. China's Shanghai Composite shed 0.08%. Profit at major Chinese industrial firms in May rose 15.5% from the year-earlier period, the National Bureau of Statistics said on Thursday. Profit at the firms from the newly adjusted measure of "core operating activities" rose 8.8% from a year earlier, 2.8 percentage points slower than in April, the data said. In the January-May period, overall industrial profit was up 12.3% from the same period in 2012, though up 11.4% in terms of core activities, the bureau said. South Korean stocks jumped after data released on Thursday, 27 June 2013, showed that the nation's current-account surplus rose to a record high in May on the back of robust exports, even against the backdrop of a global slowdown. The Seoul Composite was up 2.87%. Trading in US index futures indicated that the Dow could gain 22 points at the opening bell on Thursday, 27 June 2013. US stocks jumped on Wednesday, 26 June 2013, pulling benchmark indexes into positive terrain for the week, as a downward revision in economic growth calmed concern about US monetary policy. Gross domestic product expanded 1.8% from January through March, down from an earlier estimate of 2.4%, the Commerce Department reported. Federal Reserve Chairman Ben Bernanke on 19 June 2013 said that the central bank may taper the pace of its bond purchases, currently set at $85 billion a month, as early as this year if the economy continues to improve in line with its forecasts. Data on consumer spending in May and a separate report on weekly initial claims for unemployment benefits are due later in the global day today, 27 June 2013. Also set for Thursday are speeches by three Federal Reserve officials and a report on pending home sales for May from the National Association of Realtors.
Wednesday, June 26, 2013
Nifty hits over 10-week low
Key benchmark indices edged lower with the market sentiment hit adversely after the rupee hit record low below 60 against the dollar in afternoon deals. The S&P BSE Sensex lost 77.03 points or 0.41%, off close to 140 points from the day's high and up about 35 points from the day's low. The 50-unit CNX Nifty reached its lowest closing level in more than 10 weeks. The market breadth, indicating the overall health of the market, was negative. Also hitting market sentiment was data showing that foreign institutional investors (FIIs) remained net sellers of Indian stocks on Tuesday, 25 June 2013. The Sensex has lost 1,208.18 points or 6.11% in this month so far (till 26 June 2013). The Sensex has fallen 874.59 points or 4.5% in calendar 2013 so far (till 26 June 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 1,891.50 points or 9.25%. From a 52-week low of 16,598.48 on 26 July 2012, the Sensex has surged 1,953.64 points or 11.77%. Coming back to today's trade, index heavyweight and cigarette major ITC pared gains in late trade. Reliance Industries (RIL) reversed intraday gains and slipped into the red in late trade. Bharti Airtel dropped on reports the Department of Telecom (DoT) has decided to slap a Rs 650-crore penalty on the company for violating roaming norms in 13 circles between 2003-2005. Auto stocks were mostly lower. IT stocks rose on positive economic data in the US, the biggest outsourcing market for the Indian IT firms. In the currency market, the rupee breached the 60-mark against dollar and touched all-time low in the mid-session trading on higher demand from banks and importers and heavy outflows by foreign institutional investors. The rupee was hovering at 60.69 against the dollar, sharply lower than Tuesday's close of 59.66/67. A weak rupee makes the cost of oil and other imported goods higher in rupee terms, adding to inflationary pressure. The market may remain volatile tomorrow, 27 June 2013, as traders roll over positions in the futures & options (F&O) segment from the near month June 2013 series to July 2013 series. The June 2013 F&O contracts expire tomorrow, 27 June 2013. The market sentiment was hit adversely by data showing that foreign funds remained net sellers of Indian stocks on Tuesday, 25 June 2013. Foreign institutional investors (FIIs) sold shares worth a net Rs 1319.80 crore into the secondary equity markets on Tuesday, 25 June 2013, as per the data from the Securities & Exchange Board of India (Sebi). The S&P BSE Sensex shed 77.03 points or 0.41% to 18,552.12, its lowest closing level since 24 June 2013. The index gained 61.35 points at the day's high of 18,690.50 in morning trade. The index fell 114.80 points at the day's low of 18,514.35 in late trade. The CNX Nifty lost 20.40 points or 0.36% to 5,588.70, its lowest closing level since 15 April 2013. The index hit a high of 5,635.25 in intraday trade. The index hit a low of 5,579.35 in intraday trade. The BSE Mid-Cap index fell 0.67% and underperformed the Sensex. The BSE Small-Cap index declined 0.37% and outperformed the Sensex. The BSE IT index (up 1.69%), BSE Power index (up 0.93%), BSE FMCG index (up 0.66%), BSE Teck index (up 0.4%), BSE Oil & Gas index (down 0.07%), BSE PSU index (down 0.23%), and BSE Realty index (down 0.29%), outperformed the Sensex. The BSE Auto index (down 1.79%), BSE Metal index (down 1.31%), BSE Consumer Durables index (down 1.12%), BSE Healthcare index (down 1.12%), BSE Bankex (down 1.03%), and BSE Capital Goods index (down 0.79%), underperformed the Sensex. The total turnover on BSE amounted to Rs 1483 crore, lower than Rs 1930 crore on Tuesday, 25 June 2013. The market breadth, indicating the overall health of the market, was negative. On BSE, 1,360 shares declined and 952 shares rose. A total of 144 shares were unchanged. Among the 30-share Sensex pack, 18 stocks declined and rest of them gained. FMCG stocks gained on renewed buying. Colgate-Palmolive (India) (up 3.35%) and Godrej Consumer Products (up 0.87%), gained. Hindustan Unilever rose 0.12% to Rs 588.30. Anglo-Dutch consumer goods major Unilever's open offer to raise its stake in Indian unit, which opened on 21 June 2013, closes on 4 July 2013. Unilever will buyback shares from minority shareholders at Rs 600 per share to hike its stake in Hindustan Unilever from 52.48% to up to 75%. Marico rose 6.72% to Rs 204.15, with the stock recovering on bargain hunting. Shares of Marico had declined 15.54% in six trading sessions to settle at Rs 191.30 on Tuesday, 25 June 2013, from a recent high of Rs 226.50 on 17 June 2013. Index heavyweight and cigarette major ITC rose 0.87% to Rs 323. The stock hit a high of Rs 326.80 and low of Rs 318.95. DLF advanced 1.29% to Rs 168.65. The stock had hit a 52-week low of Rs 161.25 in intraday trade on Monday, 24 June 2013. Metal stocks edged lower. Tata Steel (down 0.69%), Hindalco Industries (down 2.32%) and Jindal Steel & Power (down 2.89%) edged lower. But, Sterlite Industries rose 0.06%. Shares of some power generation and power distribution companies edged higher. Torrent Power, NHPC, Power Grid Corporation of India, Tata Power Company and JSW Energy rose by 0.12% to 2.47%. NTPC gained 2.13%. Coal India fell 1.72%. Reportedly NTPC has resolved its public spat with Coal India over quality and payment terms and agreed to sign fuel-supply agreement (FSA) with the state-run coal major. NTPC had earlier publicly challenged Coal India on various issues, particularly the quality of coal supplied, and said it would make payments only on the basis of quality of the fuel supplied. NTPC accounts for more than 35% of the quantity that Coal India supplies under the new FSAs. As per reports, Coal India's board is scheduled to consider the fuel pact at a meeting today, 26 June 2013, after which the final agreement will be signed. Reliance Industries (RIL) shed 0.16% at Rs 802.55. The stock hit a high of Rs 814.55 and low of Rs 800.85. As per reports, the Cabinet Committee on Economic Affairs (CCEA) will consider a proposal this week for a steep hike in natural gas prices. The CCEA last week deferred a decision on a proposal to hike natural gas prices as Oil Minister M Veerappa Moily was away on an official tour. The oil ministry has proposed an increase in gas prices to $6.775 million British thermal unit (mbtu) from current $4.2 mbtu. The Oil Ministry has proposed raising gas price for state-run firms immediately and that for Reliance Industries (RIL) from April 2014 when it is contractually due. Auto stocks were mostly lower. Bajaj Auto fell 0.29% to Rs 1,794.70, off day's low of Rs 1,764. The company after market hours on Tuesday, 25 June 2013 said workmen at its Chakan plant in Pune have stopped coming to work. Bajaj Auto said the workers had earlier given a notice for a stoppage of work at the plant from the morning shift of 28 June 2013. The reason for the strike was that management had refused to concede their demand that all the workmen working in Bajaj Auto should each be given an option to subscribe to 500 equity shares of the company at a discounted price of Re 1 per share, Bajaj Auto added. The workmen have, however, stopped coming to the Chakan plant from 25 June 2013, itself, without assigning any reason for this stoppage, the company said in a filing. Hero MotoCorp rose 3.89%. Maruti Suzuki India rose 0.2%. M&M (down 4.63%) and Tata Motors (down 3.02%) declined. Meanwhile, Ford India has launched today, 26 June 2013 a much awaited compact sports utility vehicle EcoSport. The vehicle is priced at Rs 5.59 lakh onwards in New Delhi. IT stocks rose on positive economic data in the US, the biggest outsourcing market for the Indian IT firms. TCS (up 2.84%), Infosys (up 0.82%) and Wipro (up 0.97%), edged higher. Rupee's weakness also aided gains in IT stocks. The rupee hit record low below 60 versus the dollar today, 26 June 2013. The rupee was hovering at 60.69 against the dollar, sharply lower than Tuesday's close of 59.66/67. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. Bharti Airtel tumbled 5.73% to Rs 278.45 on reports the Department of Telecom (DoT) has decided to slap a Rs 650 crore penalty on Bharti Airtel for violating roaming norms in 13 circles between 2003-2005. It was the top loser from the Sensex pack. Asian Paints rose 2.93%. The company during market hours today,26 June 2013, said that it has fixed 31 July 2013 as the record date for 10-for-1 stock split. Bharat Heavy Electricals (Bhel) rose 0.03% to Rs 163.65, with the stock recovering on bargain hunting. Shares of Bhel had declined 10.28% in six trading sessions to settle at Rs 163.60 on Tuesday, 25 June 2013, from a recent high of Rs 182.35 on 17 June 2013. Lupin shed 1.86%. The company during market hours today said that the company's board of directors has approved the increase in the limit of investments by foreign institutional investors (FIIs) in the equity share capital of the company from 33% to 49%. Dr Reddy's Laboratories fell 0.32%. The company during market hours today, 26 June 2013 said it has launched Lamotrigine Extended-Release Tablets (25 mg, 50 mg, 100 mg, 200 mg, 300 mg) a therapeutic equivalent generic version of Lamictal XR in the US market on 25 June 2013 following the approval by the United States Food & Drug Administration (USFDA) of Dr Reddy's abbreviated new drug application (ANDA) for Lamotrigine XR tablets. According to IMS Health data, the Lamictal XR brand and its generic verision had combined sales of approximately $300.5 million in the United States for the twelve months ended April 2013. MMTC hit maximum permissible 5% lower circuit at Rs 113.90, also its 52-week low, with the stock extending recent steep slide triggered by government concluding the divestment of 9.33% stake in the firm at a huge discount to the stock's ruling market price. Shares of MMTC have slumped 46.13% in ten trading sessions from a recent high of Rs 211.45 on 12 June 2013. On 13 June 2013, the Government of India (GoI) sold 9.33% stake in MMTC via Offer for Sale (OFS) through stock exchanges mechanism at an indicative price of Rs 60.86 per share, at a discount of 71.21% to the closing price of the stock of Rs 211.45 on 12 June 2013. The divestment was done to make the company compliant to the public shareholding requirements under the Securities Contract Regulations (Rules) (SCRR). Sebi has mandated minimum public shareholding of 10% for state-run firms by 8 August 2013. Post stake sale, the GoI holds 90% stake in MMTC. Reliance Capital rose 2.08% after the company said it will apply to Reserve Bank of India for a banking license. Reliance Capital will be the promoter of the proposed new bank. The company said Sumitomo Mitsui Trust Bank and Nippon Life Insurance, two leading financial institutions from Japan, propose to take between 4-5% stake each in the proposed new bank, subject to necessary regulatory approvals, etc. Sumitomo Mitsui Trust Bank is a preeminent trust banking group in Japan. Nippon Life Insurance is Japan's largest private life insurer. Aditya Birla Nuvo rose 0.29% after the company said its board has approved the proposal of making an application to the Reserve Bank of India for obtaining licence for setting up a bank. The announcement was made after market hours on Tuesday, 25 June 2013. Market regulator Securities & Exchange Board of India (Sebi) on Tuesday approved changes to buyback of shares or other specified securities from the open market through stock exchange mechanism as part of its constant endeavour to align regulatory requirements with the changing market realities as well as to enhance efficiency of the buy-back process. Sebi said after a board meeting that the mandatory minimum buy-back has been increased to 50% of the amount earmarked for the buy-back, as against existing 25%, failing which amount in the escrow account would be forfeited subject to a maximum of 2.5% of the total amount earmarked. The maximum buy-back period has been reduced to 6 months from 12 months, it added. Sebi's new rules will require companies to not raise further capital for a period of one year from the closure of the buy-back except in discharge of subsisting obligations as against the existing 6 months. The company shall not make another buy-back offer within a period of one year from the date of closure of the preceding offer. The companies can buy-back 15% or more of capital (paid-up capital and free reserves) only by way of tender offer, it added. Approving a Sebi committee report on the rationalization of foreign investment routes, Sebi also introduced uniform entry norms for existing foreign institutional investors (FIIs), sub-accounts and qualified foreign investors (QFIs) and combined these entities under a category known as foreign portfolio investors (FPIs). In another key move, the regulator approved the proposal to put in place a single self-regulatory organization (SRO) for mutual fund distributors. In order to speed up the process, Sebi decided to have a cut-off time for accepting applications from potential SROs. European stocks edged higher on Wednesday, 26 June 2013, as positive sentiment from the US on the back of upbeat data encouraged investors to move into the stock market. Key benchmark indices in France, Germany and UK rose by 1.02% to 1.84%. French gross domestic product contracted in the first quarter of the year, confirming the euro-zone's second largest economy succumbed to the recession in the wider euro zone, statistics showed Wednesday. France's economy contracted 0.2% in the first quarter from the previous quarter, when GDP fell 0.2%, statistics agency Insee said. Through 2009, France posted weak or negative GDP, but had avoided recession defined as two consecutive quarters of economic contraction. Asian stocks edged higher to reverse a four-day losing streak on Wednesday, 26 June 2013, as investors took comfort from firm US data underscoring an American recovery, and assurances from China's central bank to provide funds to institutions if needed. Key benchmark indices in Hong Kong, South Korea, Indonesia, Taiwan and Singapore were up by 0.16% to 3.82%. China's Shanghai Composite index fell 0.41%, extending recent losses on fears of a credit crunch and slower loan growth. Japan's Nikkei 225 index shed 1.04%. Trading in US index futures indicated that the Dow could advance 51 points at the opening bell on Wednesday, 26 June 2013. US stocks rose sharply on Tuesday cheered by upbeat economic data showing increases in durable-goods orders, new-home sales and consumer confidence. The Commerce Department said orders for goods built to last at least three years rose 3.6% in May. Another report from the Commerce Department indicated new-home sales rising 2.1% last month. Separately, the S&P/Case-Shiller index of home values rose 12.1% in April from a year earlier, the biggest jump in more than seven years. The Conference Board's consumer-confidence index rose to 81.4 in June from 74.3 in May.
Better Trades for the Day
Global Cues: The European shares closed higher on Tuesday (June 25, 2013) were, FTSE100 was up by 1.21%, CAC40 ended 1.51% higher and DAX rose by 1.55%. The US stocks were also up on Tuesday (June 25, 2013), Dow Jones rose by 0.69% while Nasdaq gained by 0.82%. The Asian shares are trading higher on Wednesday (June 26, 2013). SGX Nifty is up by 14.00 points. Stock in news: Bajaj Auto workers at Chakan plant go on strike. Godrej Properties to cut Rs 525 cr debt from rights issue. Gitanjali to cut sale of gold coins, bars.
India will lift FDI cap in some sectors by July: FM
India will lift foreign direct investment ( FDI) caps in some sectors by the third week of July, Finance Minister P. Chidambaram said on Tuesday. He said a finance ministry panel has already submitted a report on revising FDI caps in different sectors, and the Department of Industrial Policy and Promotion is in talks with stakeholders. India is widely expected to raise FDI limits in sectors like defence and telecommunications. Chidambaram on Tuesday did not name the sectors.
Market likely to open higher
The market is poised for a higher start on mostly positive Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 22 points at the opening bell. Asian stocks were mostly higher on Wednesday after goods and housing data bolstered the US economic outlook. Bajaj Auto after market hours on Tuesday, 25 June 2013 said it received a notice from the workmen's union of its Chakan plant viz., Vishwa Kalyan Kamgar Sanghatana stating that they propose to call for a stoppage of work by all the workmen employed in Chakan plant from the morning shift of 28 June 2013 for the reason that management had refused to concede their demand that all the workmen working in Bajaj Auto should each be given an option to subscribe to 500 equity shares of the company at a discounted price of Re 1 per share. The workmen have however stopped coming to the Chakan plant from 25 June 2013, itself, without assigning any reason for this stoppage. The board of Aditya Birla Nuvo has approved the proposal of making an application to the Reserve Bank of India (RBI) for obtaining licence for setting up a bank. Shares of Emami turn ex-dividend today, 26 June 2013 for a dividend of Rs 8 per share for the year ended 31 March 2013. The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month June 2013 series to July 2013 series. The June 2013 F&O contracts expire tomorrow, 27 June 2013. Key benchmark indices edged higher in volatile trade on Tuesday, 25 June 2013 as European stocks and US index futures rose after soothing words from China's central bank over the liquidity crunch in China. The S&P BSE Sensex advanced 88.26 points or 0.48% to settle at 18,629.15, its highest closing level since 21 June 2013. Foreign institutional investors (FIIs) sold shares worth a net Rs 1285.86 crore on Tuesday, 25 June 2013, as per provisional data from the stock exchanges. Meanwhile, market regulator Securities & Exchange Board of India (Sebi) on Tuesday approved changes to buyback of shares or other specified securities from the open market through stock exchange mechanism as part of its constant endeavour to align regulatory requirements with the changing market realities as well as to enhance efficiency of the buy-back process. Sebi said after a board meeting that the mandatory minimum buy-back has been increased to 50% of the amount earmarked for the buy-back, as against existing 25%, failing which amount in the escrow account would be forfeited subject to a maximum of 2.5% of the total amount earmarked. The maximum buy-back period has been reduced to 6 months from 12 months, it added. Sebi's new rules will require companies to not raise further capital for a period of one year from the closure of the buy-back except in discharge of subsisting obligations as against the existing 6 months. The company shall not make another buy-back offer within a period of one year from the date of closure of the preceding offer. The companies can buy-back 15% or more of capital (paid-up capital and free reserves) only by way of tender offer, it added. Asian stocks were mostly higher on Wednesday after goods and housing data bolstered the US economic outlook. Key benchmark indices in Hong Kong, Indonesia, Taiwan and Singapore were up 0.5% to 1.82%. Key benchmark indices in China, Japan and South Korea were off 0.12% to 1.77%. US stocks rose sharply on Tuesday cheered by upbeat economic data showing increases in durable-goods orders, new-home sales and consumer confidence. The Commerce Department said orders for goods built to last at least three years rose 3.6% in May. Another report from the Commerce Department indicated new-home sales rising 2.1% last month. Separately, the S&P/Case-Shiller index of home values rose 12.1% in April from a year earlier, the biggest jump in more than seven years. The Conference Board's consumer-confidence index rose to 81.4 in June from 74.3 in May.
Tuesday, June 18, 2013
Markets wrapped session in red ahead of US Fed meet
The sentiment remained bearish, with investors reacting badly ahead of Fed’s policy decision and profit booking. The BSE Sensex slipped 0.53% and the Nifty closed 0.62% lower in trade today. Major Headlines: Indirect tax collection shows marginal growth of 3.8% in April-May Panacea Biotech zooms on huge volumes Ranbaxy drops 4% to record 4 year low Events for Wednesday (June 19, 2013): Coromandel International to quote final dividend Indian Indices Bears had busy day at work as the Bulls tried to contribute in today's unexpected trading session. The Indian markets closed in the red zone as the equities remained volatile led by selling pressure across the board. Benchmark share indices witnessed weak trading session after continuous rally seen for 2-days. Tuesday turned out to be a session where investors remained cautious, ahead of the Fed's meeting ending on Wednesday as an early end to US monetary stimulus is raising worries about a weaker rupee and hence a delay in any potential RBI rate cuts. The rate sensitive like banking, auto and realty stocks were also struggling for direction. Dalal Street felt shy of facing green terrain amid volatility in majority of the sectors which further pulled the markets down. At the closing bell, the BSE Midcap index gained 0.03%, while the BSE Smallcap index was up by 0.25%. Movement of the Indian indices for the day: After 2-day's rising trend, Indian markets ended lower, as investors turned cautious and booked profit in financials ahead of the US Fed meet which begins later today. The Banks were among the top losers given that an end to US monetary stimulus could push the rupee lower, delaying any rate cuts by the Reserve Bank of India. The markets remained in negative terrain for major part of the day as Equities did enter in the green territory in afternoon trade for a while raising investor’s hope but could not sustain gains for long and slipped back to the negative zone. A major downfall was seen in S&P BSE Sensex like HDFC Bank, HDFC, ICICI Bank, ONGC, ITC, L&T and NTPC while Infosys, Tata Steel and Bajaj Auto were in positive trend. The Sensex closed at 19223.28, down by 102.59 points and the Nifty fell 36.45 points to settle at 5813.60 in trade today. Following are the stocks/ sectors which were in news today: 1. VA Tech Wabag gained 3.38% after the company in a joint venture with Pratibha Industries has won an Rs262 cr order from Melamchi Water Supply Development Board, Nepal. 2. Venus Remedies rose 2.74%, after the company said it has received patent from Mexico for its novel antibiotic product Potentox. 3. Shares of mobile operators rose, extending yesterday's gains after the telecoms regulator allowed carriers to offer free nationwide mobile roaming to subscribers for a fixed fee from July 01, 2013. After market hours, Idea Cellular rose 1.29% and Reliance Communications was up 11.14%. Market sentiment The market breadth stood in favor of declines. Of the 2466 stocks traded on the BSE, 1159 (47.00%) rose, 1161 (47.08%) fell and 146 (5.92%) stocks remained unchanged. Sectoral & stock screening Among the 13 sectoral indices, four sectors closed in the green zone while remaining nine sectors closed in the red zone. Top Gainers- BSE Metal up by 0.75%, BSE TECK rose by 0.67%, BSE IT surged by 0.57%. Top Losers: BSE Bankex slipped 1.20%, BSE CD fell 1.09% and BSE PSU declined 0.91%. Among 'A' group stocks, top three gainers were- Reliance Communication rose by 11.14%, Piramal Enterprises up by 5.64% and Adani Enterprises surged by 4.81%. Top three losers were- MMTC declined by 4.98%, Ranbaxy Lab down by 3.56% and Essar Oil fell by 3.15%. Global signals: Asian shares eased on Tuesday as investors waited for Federal Reserve Chairman Ben Bernanke to clarify the U.S. central bank's plans for its stimulus programme - with the mere suggestion of fine-tuning it enough to unnerve market sentiment. European shares edged lower on Tuesday, led by a hit for Denmark's Danske Bank on capital concerns as investors awaited the outcome of a two-day meeting of the US Federal Reserve. US stock index futures poised for a higher opening at the Wall Street on Tuesday.
RCom gallops to 52-week high on high volume
Reliance Communications jumped 10.92% to Rs 123.45 at 15:19 IST on BSE, with the stock extending two-day gain on follow-up buying. Meanwhile, the S&P BSE Sensex was down 27.66 points, or 0.14%, to 19,298.21. The Reliance Communications (RCom) stock surged on high volume. On BSE, 1.09 crore shares were traded in the counter as against an average daily volume of 60.74 lakh shares in the past one quarter. The stock hit a high of Rs 124.95 so far during the day, which is also its 52-week high. The stock hit a low of Rs 111.15 so far during the day. The stock had hit a record low of Rs 46.60 on 30 August 2012. The stock had outperformed the market over the past one month till 17 June 2013, falling 2.02% compared with the Sensex's 4.73% fall. The scrip had also outperformed the market in past one quarter, surging 67.12% as against Sensex's 0.52% fall. The large-cap telecom company has an equity capital of Rs 1032.01 crore. Face value per share is Rs 5. Shares of Reliance Communications (RCom) have gained 17.77% in three trading days from the recent low of Rs 105.50 on 13 June 2013, with bulk of the gains coming from today's session. Meanwhile, telecom regulator Telecom Regulatory Authority of India (TRAI) on Monday, 17 June 2013 said it has reduced ceilings for national roaming calls and SMS and instituted a new regime for providing flexibility to telecom service providers to customise tariffs for national roamers through special tariff vouchers (STVs) and combo vouchers. TRAI has also mandated two types of free national roaming plans to be provided by all telecom service providers. These changes will come into effect from 1 July 2013. As per the latest (TRAI) mandate, outgoing local call charges, while on roaming, will be capped at Re 1 per minute from Rs 1.40 earlier, while outgoing STD charges, while on national roaming, have been capped to Rs 1.50 from Rs 2.40 per minute earlier. The ceiling tariffs for incoming calls while on national roaming have been reduced from Rs 1.75 per minute to 75 paise per minute, TRAI said. Outgoing local SMS-es will cost Rs 1, while outgoing STD SMS will cost Rs 1.50. Incoming SMS will remain free of charge. The changes will be effective from 1 July 2013. India is divided into 22 telecom zones. Currently, subscribers pay an additional fee for making and receiving calls when they are outside their home zone. On 7 June 2013, Reliance Jio Infocomm, a subsidiary of Reliance Industries and RCom announced the signing of a definitive agreement for sharing the latter's nationwide telecom towers infrastructure. Reports late May 2013 indicated that RCom has raised basic rates for both GSM and CDMA pre-paid mobile-to-mobile calls by 33% to 2 paise per second from 1.5 paise per second. RCom on 10 May 2013 made full repayment of a syndicated ECB loan facility of $500 million (over Rs 2700) on the due date. The loan was taken in 2007 from a group of international bank, RCom said in a statement. On 22 April 2013, RCom announced that Samena Capital in a proposed consortium with certain other global PE funds is at an advanced stage of the process of due diligence and completion of definitive documents in relation to the acquisition of the company's global communications services business unit -- Reliance Globalcom. The intended time line for completion of the transaction is end May 2013. At this point, there can be no certainty that this will lead to a transaction, RCom said. A further announcement will be made in due course, if and when appropriate, the company added. RCom also said that it has discontinued discussions with Batelco Group for selling its sake in Reliance Globalcom. RCom had earlier said in March 2013 that it was in discussions with Batelco Group with respect to Reliance Globalcom. RCom's consolidated net profit declined 8.73% to Rs 303 crore on 2.39% growth in total income from operations to Rs 5130 crore in Q4 March 2013 over Q4 March 2012. RCom has established a pan-India, high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain.
Market snaps two-day winning streak
Key benchmark indices edged lower in choppy trade as a steep slide in rupee against the dollar hit investor sentiment adversely. The S&P BSE Sensex lost 102.59 points or 0.53%, off 160.33 points from the day's high and up 31.91 points from the day's low. The market breadth, indicating the overall health of the market, was almost even. Shares of index heavyweight Reliance Industries declined in choppy trade. Indian stocks today, 18 June 2013, snapped two-day winning streak. The Sensex had gained 498.71 points or 2.65% in two trading sessions to 19,325.87 on 17 June 2013 from a recent low of 18,827.16 on 13 June 2013. The Sensex has lost 537.02 points or 2.72% in this month so far (till 18 June 2013). The Sensex has fallen 203.43 points or 1.05% in calendar 2013 so far (till 18 June 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 1,220.34 points or 5.97%. From a 52-week low of 16,598.48 on 26 July 2012, the Sensex has surged 2624.80 points or 15.81%. Coming back to today's trade, interest rate sensitive banking stocks edged lower after the Reserve Bank of India (RBI) kept repo rate and cash reserve ratio unchanged after mid-quarter review of the monetary policy on Monday, 17 June 2013. Shares of two wheeler makers rose for the second day in a row, shrugging off a hike in petrol price announced over the weekend. Capital goods stocks edged lower. Pharma stocks also declined. Telecom stocks gained for the second day in a row after Telecom Regulatory Authority of India (TRAI) said on Monday, 17 June 2013 it has reduced ceilings for national roaming calls and SMS. Shares of Idea Cellular scaled 52-week high. Bharti Infratel hit record low. Shares of IPCA Laboratories hit record high. Mahindra & Mahindra Financial Services struck record high. Metal stocks were in demand on renewed buying. A steep slide in rupee against the dollar hurt investor sentiment. The rupee was hovering at 58.77 against the dollar, sharply lower than Monday's close of 57.87/88. The Reserve Bank of India (RBI) on Monday, 17 June 2013, refrained from cutting its key policy rate further despite sluggish economic growth due to the recent steep slide in rupee against the dollar. The central bank after a monetary policy review said that the weakness in rupee could adversely impact inflation which has been slowing in the past few months. A weak rupee makes the cost of oil and other imported goods higher in rupee terms, adding to inflationary pressure. The S&P BSE Sensex lost 102.59 points or 0.53% to 19,223.28, its lowest closing level since 14 June 2013. The index fell 134.50 points at the day's low of 19,191.37 in late trade. The index rose 57.74 points at the day's high of 19,383.61 in mid-afternoon trade, its highest level since 11 June 2013. The CNX Nifty lost 36.45 points or 0.62% to 5,813.60, its lowest closing level since 14 June 2013. The index hit a low of 5,804.30 in intraday trade. The index hit a high of 5,863.40 in intraday trade, its highest level since 11 June 2013. The total turnover on BSE amounted to Rs 1627 crore, higher than Rs 1548.66 crore on Monday, 17 June 2013. The market breadth, indicating the overall health of the market, was almost even. On BSE, 1,162 shares gained and 1,164 shares declined. A total of 140 shares were unchanged. The BSE Mid-Cap index rose 0.03% and the BSE Small-Cap index gained 0.25%. Both these indices outperformed the Sensex. The BSE Metal index (up 0.75%), BSE IT index (up 0.57%), BSE Teck (up 0.57%), BSE Healthcare index (up 0.05%), BSE Realty index (down 0.15%), BSE FMCG index (down 0.31%), BSE Auto index (down 0.23%) outperformed the Sensex. The BSE Oil & Gas index (down 0.57%), BSE Power index (down 0.64%), BSE Capital Goods index (down 0.86%), BSE PSU index (down 0.91%), BSE Consumer Durables index (down 1.09%), BSE Bankex (down 1.2%), underperformed the Sensex. Among the 30-share Sensex pack, 19 stocks fell and the rest of them rose. NTPC (down 2.2%), GAIL (India) (down 1.94%) and ONGC (down 1.94%), edged lower. Shares of index heavyweight Reliance Industries (RIL) declined 0.52% to Rs 820.80 in volatile trade. The stock hit high of Rs 836.90 and low of Rs 817.70. RIL shares had risen recently after Niko Resources on 13 June 2013 said its proved reserves increased by 160%, and that a recent gas discovery in the D6 block off India's east coast could add significantly to future reserves. RIL is the operator of the block with a 60% stake. BP Plc holds 30% and Niko the rest. Interest rate sensitive banking stocks edged lower after the Reserve Bank of India (RBI) kept repo rate and cash reserve ratio unchanged after mid-quarter review of the monetary policy on Monday, 17 June 2013. HDFC Bank (down 1.27%), State Bank of India (down 0.92%) and ICICI Bank (down 0.74%), edged lower. IDFC fell 1%. IDFC after market hours today, 18 June 2013, said that the company's board of directors at its meeting held today, 18 June 2013, has approved a resolution for making an application to the Reserve Bank of India (RBl) for obtaining a banking license based on the guidelines for licensing of new banks in the private sector dated 22 February 2013 and the associated clarifications issued by RBI on 3 June 2013. Mahindra & Mahindra Financial Services advanced 1.14% to Rs 267.10 after striking a record high of Rs 271.60 in intraday trade today, 18 June 2013. Capital goods stocks edged lower. L&T (down 1.57%) and Bhel (down 1.23%), declined. Pharma stocks declined. Cipla (down 0.04%), Sun Pharmaceutical Industries (down 0.5%) and Dr Reddy's Laboratories (down 0.85%), edged lower. Metal stocks were in demand on renewed buying. Jindal Steel & Power (up 0.23%), Sterlite Industries (up 1.16%), Hindustan Zinc (up 0.72%) and Tata Steel (up 2.64%) edged higher. JSW Steel rose 2.01%, with the stock extending Monday's gain. JSW Steel during market hours on Monday announced that its May 2013 crude steel production rose 40% to 10.13 million tonne in May 2013 over May 2012. The production of flat rolled products rose 57% to 8.06 million tonne in May 2013 over May 2012. The production of long rolled products rose 13% to 1.68 million tonne in May 2013 over May 2012. The rise was production was due inclusion of production figures of JSW ISPAT Steel which was merged with the company. Hindalco Industries shed 0.74%. Shares of two wheeler makers rose for the second day in a row, shrugging off a hike in petrol price announced over the weekend. Hero MotoCorp (up 1.4%) and Bajaj Auto (up 1.81%), edged higher. PSU OMCs hiked petrol price by Rs 2 a litre on Saturday, 15 June 2013. India's largest utility vehicle maker by sales, Mahindra & Mahindra (M&M), was down 0.55% after jumping 4.43% on Monday. Mahindra Ugine Steel Company was locked at 10% upper limit, with the stock extending Monday's 10% rally. Mahindra Forgings was up 3.47%. The Mahindra Group and CIE Automotive S. A. (Spain) on Saturday, 15 June 2013, announced the signing of a global alliance agreement between Mahindra's automotive component businesses (held under its Systech Sector) and CIE Automotive (involving also its subsidiary Autometal). The agreement will see the formation of a global automotive component supply network with combined annual sales of approximately Rs 15000 crore or $3 billion with operations in North America, South America, Europe and Asia held through listed businesses in Spain, Brazil and India. As part of the transaction, CIE Automotive, through one of its subsidiaries, will acquire from Mahindra Group a stake in its listed and unlisted companies belonging to Systech Automotive Component business and CIE Automotive will contribute its forging businesses in Spain and Lithuania and together consolidate all companies under Mahindra Forgings (MFL) which will be rechristened Mahindra CIE. Mahindra CIE will continue to be listed on BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). The share sale by Mahindra group will trigger open-offer provisions under the Securities Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations 2011. The proposed business transaction will be carried out in a series of steps over the next year that will culminate in Mahindra & Mahindra (M&M) taking a stake of 13.5% in CIE Automotive and CIE Automotive taking a majority stake in a single listed entity in India which will continue to operate the current Systech automotive component businesses globally and include CIE's European forgings operations. Post acquisition of 13.5% stake, M&M will be second largest shareholder in CIE. M&M will nominate 2 directors to the CIE board. The Mahindra Systech business consists of five companies viz. Mahindra Forgings, Mahindra Ugine Steel Company, Mahindra Composites, Mahindra Hinoday Industries and Mahindra Gears. IT stocks were mixed. Infosys (up 1.59%) and Wipro (up 0.87%) edged higher. TCS shed 0.23%. HCL Technologies fell 0.06%. The company said during market hours today, 18 June 2013 that the company is poised for continued growth and expansion in Latin America (LATAM), having recently marked the four-year anniversary of its operations in Brazil. HCL's operations in Brazil have grown 35% percent year-on-year for the last two years, adding significantly to the customer base over this period. the company said. During the past two years, the company has also increased its headcount by about 50% percent in Brazil. HCL is seeing increasing demand from its global customers headquartered in North America, as well as in Europe and Asia to support their LATAM delivery operations from its Brazil centers, it said in a statement. CMC dropped 1.08% as the stock turned ex-dividend today, 18 June 2013, for dividend of Rs 17.50 per share for the year ended 31 March 2013. Telecom stocks gained for the second day in a row after Telecom Regulatory Authority of India (TRAI) said on Monday, 17 June 2013 it has reduced ceilings for national roaming calls and SMS and instituted a new regime for providing flexibility to telecom service providers to customise tariffs for national roamers through special tariff vouchers (STVs) and combo vouchers. TRAI has also mandated two types of free national roaming plans to be provided by all telecom service providers. These changes will come into effect from 1 July 2013. Reliance Communications (RCom) jumped 11.06% to Rs 123.60, after striking a 52-week high of Rs 124.95 in intraday trade today, 18 June 2013. The stock surged on high volume. On BSE, 1.11 crore shares were traded in the counter as against an average daily volume of 60.74 lakh shares in the past one quarter. Shares of Idea Cellular rose 1.54% to Rs 141.85 after striking a 52-week high of Rs 143.50 in intraday trade today, 18 June 2013. MTNL (up 1.66%) and Tata Teleservices (Maharashtra) (up 2.04%) gained. As per the latest (TRAI) mandate, outgoing local call charges, while on roaming, will be capped at Rs 1 per minute from Rs 1.40 earlier, while outgoing STD charges, while on national roaming, have been capped to Rs 1.50 from Rs 2.40 per minute earlier. The ceiling tariffs for incoming calls while on national roaming have been reduced from Rs 1.75 per minute to 75 paise per minute, TRAI said. Outgoing local SMS-es will cost Rs 1, while outgoing STD SMS will cost Rs 1.50. Incoming SMS will remain free of charge. The changes will be effective from 1 July 2013. India is divided into 22 telecoms zones. Currently, subscribers pay an additional fee for making and receiving calls when they are outside their home zone. Bharti Airtel fell 1.32% with the stock reversing intraday gain in late trade. The stock had risen 2.53% on Monday, 17 June 2013, on the back of the company's announcement that it has completed the allotment of 19.98 crore new shares, representing 5% equity stake in the company, to Qatar Foundation Endowment. The shares have been issued at a price of Rs 340 each on a preferential basis for a total consideration of Rs 6796 crore. The allotment marks one of the largest private equity transactions in the history of India, Bharti said. On 3 May 2013, Bharti and Qatar Foundation Endowment had announced a binding agreement for the share sale. As part of the entitlement, QFE is entitled to one seat on the board of Bharti. Bharti Infratel slipped 1.53% to Rs 150.95 after striking a record low of Rs 148 in intraday trade today, 18 June 2013. MMTC declined by maximum permissible level of 5% at Rs 154.70 on BSE, with the stock extending recent steep slide triggered by government concluding the divestment of 9.33% stake at a huge discount to the stock's ruling market price last week. The government last week sold 9.33% stake in MMTC via Offer for Sale through stock exchanges mechanism at an indicative price of Rs 60.86 per share. The divestment was done to make the company compliant to the public shareholding requirements under the Securities Contract Regulations (Rules) (SCRR). Sebi has mandated minimum public shareholding of 10% for state-run firms by August 2013. Ranbaxy Laboratories lost 3.8% to Rs 351.50 after hitting a 52-week low of Rs 342.75 in intraday trade today, 18 June 2013. The Supreme Court will reportedly hear on 24 June 2013 a petition seeking probe against Ranbaxy Laboratories for allegedly manufacturing and selling adulterated medicines. Ranbaxy on 31 May 2013 had said all Ranbaxy products currently in the Indian and global markets are safe and efficacious. The company stands by the quality of every medicine that the company makes and distributes in India and every country around the world, it had said. The company's India facilities are routinely inspected by Drug Controller General of India and many other global regulatory agencies, Ranbaxy said at that time. Shares of IPCA Laboratories rose 2.32% to Rs 687 after striking a record high of Rs 691.30 in intraday trade today, 18 June 2013. Orchid Chemicals & Pharmaceuticals jumped 6.36%, with the stock extending Monday's rally triggered by the company's announcement that its oral formulations facility at Irungattukottai near Chennai was successfully inspected and accepted by the USFDA without any observations. Venus Remedies gained 2.92% after the company said after market hours on Monday, 17 June 2013, it has received another patent from Mexico for its novel antibiotic product Potentox. Granted by the Mexican Institute of Industrial Property (IMPI), the patent protects the composition of Potentox. The patent provides an exclusivity period for Potentox up to 2025. The drug is also protected by a number of other patents from various other countries, including USA, India, Australia, New Zealand, South Korea, South Africa, Canada and Ukraine. Potentox is an antibiotic adjuvant entity (AAE), a drug effective in case of hospital-acquired pneumonia and febrile neutropenia infections, primarily caused by quinolones or aminoglycoside-resistant microbes. In Mexican intensive care units (ICUs), the overall cost of one single healthcare-associated infection episode is $12,155. As per WHO statistics for Mexico, healthcare-associated infections are the third most common cause of death. Mexico spends about 70% of its health budget on extra costs incurred due to hospital-acquired infections. Clinical trials conducted for Potentox on more than 500 patients have indicated a drop in cost of therapy by 20-30% as compared to conventional therapies. Besides, studies conducted in hospitals across India have shown that Potentox is suitable for the treatment of infections caused by various resistant gram-negative pathogens in the ICU. Shares of Cinemax India gained by maximum permissible level of 5% to Rs 158.20, with the stock extending Monday's rally triggered by favourable swap ratio for the company's merger with PVR. Shares of PVR advanced 2.78%. The board of directors of PVR on Saturday, 15 June 2013, approved the Scheme of Amalgamation for the merger of Cine Hospitality and Cinemax India with PVR. As per the swap ratio, shareholders of Cinemax India will get 4 shares of PVR for every 7 shares held in Cinemax India. PVR holds 93.19% stake in Cinemax India through its wholly owned subsidiary Cine Hospitality (as per the shareholding patter as on 31 March 2013). Multiplex cinema chain operator PVR in November 2012 acquired promoters' entire stake in rival Cinemax India. PVR later raised its stake in Cinemax India via a mandatory open offer. VA Tech Wabag rose 3.84% after the company said during market hours today, 18 June 2013 that the company in a joint venture with Pratibha Industries has won a Rs 262 crore order from Melamchi Water Supply Development Board, Nepal. Shares of Pratibha Industries declined 1.52%. VA Tech Wabag said the project involves construction of 85 million liter per day (MLD) water treatment plant at Sundarijal, Nepal, with options to expand up to 510 MLD at a later stage. Nitesh Estates jumped 6.51% after the company said during market hours today, 18 June 2013, that a total of 1.11 crore shares pledged by Chairman & Managing Director Mr. Nitesh Shetty with a financial institution have been released. The pledged shares were released after repayment of the financial obligations by Mr. Shetty. HT Media shed 1.57% to Rs 96.90 after a block deal on BSE. A block deal of 5 lakh shares was executed in the counter on BSE at Rs 98 per share at the onset of the trading session. Finance Minister P. Chidambaram on Monday, 17 June 2013, said that the government is proactively working towards operationalisation of 215 stalled projects involving investment of about Rs 7 lakh crore with a view to give a push to the production activity in the country. The only way to contain Current Account Deficit (CAD) is to increase the domestic production of oil and coal and restraining the consumption of gold. Chidambaram made the comments while addressing a meeting of the Parliamentary Consultative Committee of the Ministry of Finance on India's high CAD and measures to contain the deficit. On political front, the ruling Congress government ahead of 2014 Lok Sabha elections appointed eight new ministers on Monday. In all, eight ministers -- four Cabinet and four ministers of state -- were sworn in on Monday evening. Mallikarjun Kharge became new minister for railways, and Oscar Fernandes was sworn in as minister for roads and highways. European stock markets edged higher on Tuesday, 18 June 2013, as German investor confidence rose in June amid signs the recovery in Europe's largest economy is gathering pace. Key benchmark indices in France, Germany and UK rose by 0.03% to 0.86%. German investor confidence rose in June amid signs the recovery in Europe's largest economy is gathering pace. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, increased to 38.5 from 36.4 in May. Most Asian stocks rose on Tuesday, 18 June 2013. Key benchmark indices in China, Indonesia, Taiwan, Singapore and South Korea rose by 0.14% to 1.45%. Hong Kong's Hang Seng was flat. Japan's Nikkei Average fell 0.2%. Foreign direct investment in China rose in May by the least in four months, a sign of concern that growth is slowing in the world's second-biggest economy. Inbound non-financial investment increased 0.3% from a year earlier to $9.26 billion, the Ministry of Commerce said today in a statement in Beijing, after a 0.4% gain in April. Trading in US index futures indicated that the Dow could gain 31 points at the opening bell on Tuesday, 18 June 2013. US stocks surged on Monday as investors await Wednesday's monetary-policy decision by the Federal Open Market Committee. A two-day meeting of the Federal Open Market Committee, the Fed's interest-rating setting body, begins today, 18 June 2013. Fed Chairman Ben Bernanke said last month that the bank could start scaling back its aggressive easing program in coming months if data continue to improve. The Fed's monthly bond purchases of $85 billion a month is aimed at encouraging US economic growth.
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