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Thursday, July 25, 2013

Rollover time: swings later in the day

In a minute there is time for decisions and revisions which a minute will reverse. - T S Eliot

Volatility is a given as the rollovers take place today. The outlook is weak given the subdued global cues. Some buying could set in towards the end but runaway gains are unlikely.

The banking counters may see some value buying after eight of the 13 major bank stocks slumped at least 5 percent on Wednesday.

Indian Oil Corporation could see some action as the Cabinet is likely to consider the proposal for sale of 10% stake in the company.

The rupee ended stronger at 59.15 against the dollar.

Container Corp of India will consider a bonus share issue today.

Cement counters are likely to see some action a Swiss cement major Holcim is set to increase its stake in Ambuja Cements from 50.55% to 61.39%. Ambuja, in turn, will buy Holcim’s stake in ACC.

ITC, ACC, Maruti Suzuki, Piramal Ent, Tara Jewels Bata India, Gail India, Mahindra & Mah Fin are the major results to look out for on Thursday

Asian markets are mostly lower. Japan's Nikkei 225 and Hong Kong's Hang Seng index were half a percent lower each. South Korea's Kospi index is marginally up while China's Shanghai index is flat.

A day after closing at peaks, Dow and S&P 500 slipped slightly on Wednesday, dragged down by Caterpillar, Broadcom and AT&T. All three delivered results short of Wall Street's forecasts. Caterpillar also lowered its earnings and sales outlook for the year, which sent its stock 2.4% lower. It was the biggest loser in Dow.

A tech stock rally powered by Apple's better-than-expected earnings limited the fall in US stocks on Wednesday. Apple rose 5% which helped Nasdaq end in the green zone.
The Commerce Department said new home sales rose to a five-year high, with an annual rate of 497,000 in June, up 8.3% from May.

Data later today is expected to show Britain's economy expanded at a faster pace in the second quarter.

Results watch: Maruti Suzuki, ITC, Biocon, Gail India, ACC, Strides Arco, Kalpataru Power, Thermax, Kansai Nerolac, Balaji Amin, Bata India, Container Corp, Emco, FAG Bearings, Bervin Invest, Bharat Bijlee, BF Invest, Granules India-, Jayant Agro, MRF, Muthoot Fin, NAVIN FLUORI, Gujarat State Fin, Mahindra & Mah Fin, Piramal Ent, Pricol, Shriram City Uni, SKS Microfinance, Torrent Power, THINKSOFT, Sterling Hol Res, TCI Developers, TTK Healthcare, Zee Entert, WPIL, Wendt India, Transport Corp.

Trends in FII flows: The FIIs were net sellers of Rs4.04bn in the cash segment on Wednesday, while the domestic institutional investors (DIIs) were net sellers of Rs3.28bn, as per the provisional figures released by the NSE.

The foreign funds were net buyers of Rs2.73bn in the cash segment on Tuesday, according to the SEBI figures.

Global Data Watch: Nationwide Housing Prices n.s.a (YoY) (Jul) GBP, Nationwide Housing Prices s.a (MoM) (Jul) GBP, Unemployment Survey (Q2) EUR, M3 Money Supply (3m) (Jun) EUR, M3 Money Supply (YoY) (Jun) EUR, Private loans (YoY) (Jun) EUR, IFO - Current Assessment (Jul) EUR, IFO - Business Climate (Jul) EUR, IFO - Expectations (Jul) EUR, Consumer Confidence (Jul) EUR, Gross Domestic Product (QoQ) (Q2)Preliminar GBP, Gross Domestic Product (YoY) (Q2)Preliminar GBP, Index of Services (3M/3M) (May) GBP, 30-y Bond Auction EUR, 10-y Bond Auction EUR, Durable Goods Orders (Jun) USD, Durable Goods Orders ex Transportation USD, Initial Jobless Claims (Jul 19) USD, Continuing Jobless Claims (Jul 13) USD, EIA Natural Gas Storage change (Jul 19) USD, Kansas Fed manufacturing activity (Jul) USD, National Consumer Price Index (YoY) (Jul) JPY, National CPI Ex Food, Energy (YoY) (Jul) JPY, National CPI Ex-Fresh Food (YoY) (Jul) JPY, Tokyo Consumer Price Index (YoY) (Jul) JPY, Tokyo CPI ex Food, Energy (YoY) (Jul) JPY, Tokyo CPI ex Fresh Food (YoY) (Jul) JPY.

In other news in the media

Cairn India is planning a capex of Rs160bn for finding and producing more oil over the next three years through the end of FY 2016. (BL)

Fortis Healthcare plans to raise up to US$43.5mn through various instruments, including issue of Foreign Currency Convertible Bonds in Singapore. (BL)

The Telecom Disputes Settlement and Appellate Tribunal stayed the Rs6.5bn penalty on Bharti Airtel for allegedly violating the subscriber local dialing norms between 2002 and 2005. (BS)

Jindal Power, a subsidiary of Jindal Steel and Power, has tied up Rs54bn in loans for two units of its upcoming 2,400- Mw generation plant in Chhattisgarh. (BS)

SpiceJet will fill by the first week of August the posts of chief executive officer and chief commercial officer (CCO), left vacant by the resignations of Neil Mills and Harish Moideen Kutty. (ET)

GVK Oil and Gas, will go slow on investing further into the development of seven deep-water blocks it has on the West Coast due to inordinate delay in getting government clearances. (ET)

Tata Consultancy Services has completed the acquisition of French enterprise solutions provider Alti, a move that will help the company to expand its reach in Europe. (ET)

NTPC will invest Rs89bn to develop its own mines and cut the share of imported coal in its total consumption to 10% in three years from 21% despite a near 40% rise in generation capacity.(ET)

Oriental Bank of Commerce hikes some deposit rates for term deposits of less than Rs10mn under various maturities from 91 days to less than a year. (BL)

Bharti Airtel’s high capacity terrestrial optical fibre link between India and Bangladesh has become operational. (BL)

The Central Board of Excise and Custom said car models, which are known as sedans, will attract 27% excise duty, as applicable to large cars and not 30%, as announced in the Budget. (BL)

The Heavy Industries Ministry has written to the Finance Ministry seeking an additional 5% import duty on power equipment. At present, there is 21% duty on such equipment. (BL)