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Friday, July 19, 2013

What to do?

One never notices what has been done; one can only see what remains to be done - Marie Curie

It’s been a volatile week thus far and the indices appear undecided about the immediate course. A lot of measures have been announced and taken but markets want to see some quick results too. T Moody's has warned that a deteriorating rupee scenario could lead to a rating downgrade for the country. Moody’s changed its outlook for the US economy from negative to stable.

The outlook is a weak start. Focus will be on stocks like TCS and RIL. TCS’ net profit rose to Rs 3,831 crore from Rs 3,318 crore in the same quarter a year ago. The IT major’s revenues rose 21% to Rs 17,987 crore (Rs 14,869 crore). Expect buying interest on the counter. RIL will be in focus too and is expected to record a net profit growth of 13-15% for the quarter.

RBI Governor D Subbarao has said the currency's exchange rate will largely be market-determined but central bank would intervene to prevent disruptions to macro-economic stability. Governor Subbarao and Deputy Governor Patel are scheduled to attend Day 1 of two-day G20 finance ministers and central bank governors meeting in Moscow.

Global cues are mixed. Dow and S&P 500 went into record territory once again on Thursday on strong earnings and a drop in jobless claims. While the Dow and S&P 500 gained traction, Nasdaq lagged, gaining only a handful of points for the day. It was weighed down by poor performing stocks like eBay and Intel. Japan's Nikkei 225 has lost 1.5% while Hong Kong's Hang Seng index is marginally lower. South Korea's Kospi index is up over half a percent while China's Shanghai index has lost a tad. US crude stood at elevated levels above $108 a barrel.

Ajanta Pharma Ltd’s board of directors will consider issue of bonus shares on July 29, the company announced.

The National Stock Exchange has disabled the unique client codes of 26 entities, including Prime Securities and Mehul Choksi, in the matter of trading in Gitanjali Gems.

The NSE said it would discontinue with futures and option contracts in Raymond and Indian Hotel with effect September.

Prism Informatics is set to consider issue of preference shares Hexaware Technologies will consider dividend.

India's monsoon rains may pick up over areas that grow cane, oilseed and cotton in northern and western regions next week, weather department said.

Detroit filed for bankruptcy, becoming the nation's largest public sector bankruptcy. The move could slash pension benefits to city workers and retirees, and leave investors holding the city's debt with only pennies on the dollar.

Results watch: RIL, Bajaj Auto, Automotive Stamp, Bajaj Holdings, CRISIL, Dhruv Estates, E Com Infotech, Eclerx Serv, Federal Bank, Harmony Cap, Hexaware Tech, Hindustan Media, Hindustan Zinc, JK Paper, Lloyds Finance, Mastek, Uco Bank, Unichem Lab, Wadala Comm.

Trends in FII flows: The FIIs were net sellers of Rs1.78bn in the cash segment on Thursday, while the domestic institutional investors (DIIs) were net sellers of Rs2.38bn, as per the provisional figures released by the NSE.

The foreign funds were net sellers of Rs6.32bn in the cash segment on Wednesday, according to the SEBI figures.

Global Data Watch: G20 Meeting, All Industry Activity Index (MoM) (May) JPY, Leading Economic Index (May) JPY, Coincident Index (May) JPY, Producer Price Index (MoM) (Jun) EUR, Producer Price Index (YoY) (Jun) EUR, Industrial Sales n.s.a. (YoY) (May) EUR, Industrial Orders n.s.a (YoY) (May) EUR, Industrial Orders s.a (MoM) (May) EUR, Industrial Sales s.a. (MoM) (May) EUR, Current Account (YoY) (May) EUR, Public Sector Net Borrowing (Jun) GBP, Trade Balance (Jun) EUR, Consumer Price Index (YoY) (Jun) CAD, Bank of Canada Consumer Price Index Core (MoM) (Jun) CAD, Bank of Canada Consumer Price Index Core (YoY) (Jun) CAD, Consumer Price Index - Core (MoM) (Jun) CAD, Consumer Price Index (MoM) (Jun) CAD.

In other news in the media:

Essar Power said it has raised Rs7.5bn in debt through rupee-denominated bond offering. (BL)

BEML Ltd has bagged fresh order worth Rs7.47bn for manufacture and supply of 92 sets of standard gauge metro cars. (BL)

Lupin will co-market multinational drug-maker MSD’s pneumonia-prevention vaccine as part of an India-specific alliance between the two companies. (BL)

Bharat Petroleum Corporation will invest Rs9bn to set up a new LPG pipeline from its Kochi refinery to Coimbatore and to enhance the storage capacity at its Irumpanam installation. (BL)

The lenders to Kingfisher Airlines are understood to be considering legal options on how they could gain part-access to the highly-valued United Breweries shares, owned by promoters, including Chairman Vijay Mallya. (BS)

BGR Energy Systems Ltd has bagged the balance of plant (BoP) contract valued at Rs15.73bn crore from Odisha Power Generation Corporation Ltd (OPGC) for its expansion project wherein the state owned generator would add two 660 Mw units to its existing power station. (BS)

Infotech Enterprises Limited, is aggressively looking at acquisition opportunities even as it is cautious on keeping the Rs6.1bn cash balance (including liquid investments) as buffer to fund internal initiatives to grow its revenues. (BS)

Ashok Leyland Ltd, betting big on supplies to Indian defence forces, is also hoping to reap the benefits of investments made in acquisitions and joint ventures, said a senior official. (ET)

PepsiCo and Mondelez, along with their Indian counterparts ITC and Britannia, have been approached for a large bite of Balaji Wafers - a 37-year-old homegrown wafer, namkeen and savoury brand that dominates the western states of Gujarat, Madhya Pradesh, Rajasthan, Maharashtra and Goa with over 65% market share. (ET)

Hanung Toys & Textiles Ltd said it has bagged an export order worth USD $60 mn from a US-based buyer. (ET)

Reliance Infrastructure said it has tied up with US-based Innovari Inc for the pilot implementation of the Automatic Demand Response (ADR) programme in its licensed distribution area. (ET)

Subscribers can now access RCom 3G services at Rs 123 for 1 GB, Rs 246 for 2 GB and Rs 492 for 4 GB. (BL)

With auto makers staring at a severe slowdown, Ashok Leyland will defer all investments and capital expenditure that is not critical, said Dheeraj Hinduja. (BL)

The finalisation of bidding norms would facilitate award of UMPPs worth 4,000 MW proposed at Bedabahal in Odisha, Cheyyur in Tamil Nadu and Surguja at Chhattisgarh.(BL)