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Tuesday, July 09, 2013
Nifty July 2013 futures near spot price
Turnover drops
Nifty July 2013 futures were at 5863, near spot closing of 5859. Turnover on NSE's futures & options (F&O) segment declined to Rs 89289.78 crore from Rs 117721.09 crore on Monday, 8 July 2013.
Reliance Communications July 2013 futures were at 141.80, at a discount compared to spot closing of 142.
State Bank of India July 2013 futures were at 1903.85, at a premium over spot closing of 1893.
Reliance Capital July 2013 futures were at 382.90, near spot closing of 381.
In the spot market, the 50-unit CNX Nifty advanced 47.45 points or 0.82% to settle at 5,859, its highest closing level since 5 July 2013.
The July 2013 derivatives contracts expire on 25 July 2013.
TTK Prestige leads gainers in 'A' group
Karnataka Bank, Reliance Power, Housing Development and Infrastructure and Indiabulls Real Estate are among the other gainers.
Pressure cooker and kitchen appliance maker TTK Prestige surged 6.50% to Rs 3,821.30. The stock topped the gainers in the BSE's 'A' group. The company unveils Q1 results on 15 July 2013.
Private sector lender Karnataka Bank spurted 6.24% to Rs 114.85 after the bank announced during trading hours today, 9 July 2013, that it has entered into a memorandum of understanding with Reliance Capital for financing the micro, small and medium enterprises through co-financing arrangement. The stock was second biggest gainer in 'A' group.
Anil Dhirubhai Ambani-controlled power generation company Reliance Power (RPower) galloped 6.10% to Rs 75.65 after the company announced during trading hours today, 9 July 2013, that its 100 megawatts Concentrated Solar Power project in Rajasthan has received approval for carbon credits under the United Nations Framework Convention on Climate Change. The stock was third biggest gainer in 'A' group.
Clean Development Mechanism (CDM) registration will allow the project to generate and sell Certified Emission Reductions (CERs) internationally. These CERs translate into direct revenues for RPower, the company said.
Real estate developer Housing Development and Infrastructure (HDIL) jumped 5.88% to Rs 39.60. The stock was fourth biggest gainer in 'A' group.
Indiabulls Real Estate climbed 5.70% to Rs 66.75. The stock was fifth biggest gainer in 'A' group.
Bank stocks advance
Key benchmark indices logged modest gains on positive global cues. The S&P BSE Sensex jumped 114.71 points or 0.59%, off 46.52 points from the day's high and up 59.23 points from the day's low. The market breadth, indicating the overall health of the market, was positive. All the thirteen sectoral indices on BSE were in green.
The Sensex has gained 43.67 points or 0.23% so far in July 2013 (till 9 July 2013). The Sensex has gained 12.77 points or 0.07% in calendar 2013 so far (till 9 July 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 1,004.14 points or 4.91%. From a 52-week low of 16,598.48 on 26 July 2012, the Sensex has surged 2,841 points or 17.12%.
Coming back to today's trade, capital goods and realty stocks edged higher. Bank stocks rose almost across the board. Pharma stocks also edged higher, with Sun Pharmaceutical Industries hitting record high. Most IT stocks rose on recent weakness of rupee against the dollar. UB group shares extended recent gains after Diageo last week said it has raised stake in liquor major United Spirits. Shares of United Spirits hit record high. Metal shares gained. Shares of companies in the education space rallied. Sugar shares edged higher.
The market edged higher in early trade on firm Asian stocks. The market trimmed initial gain in morning trade. The Sensex hovered in positive terrain in mid-morning trade. The market pared intraday gains in early afternoon trade. Key benchmark indices further pared gains to hit fresh intraday low in afternoon trade. The Sensex regained strength in mid-afternoon trade. The market was range bound in late trade.
The S&P BSE Sensex jumped 114.71 points or 0.59% to 19,439.48, its highest closing level since 5 July 2013. The index rose 161.23 points at the day's high of 19,486 in early trade. The index gained 55.48 points at the day's low of 19,380.25 in afternoon trade.
The CNX Nifty was up 47.45 points or 0.82% to 5,859, its highest closing level since 5 July 2013. The index hit a high of 5,864.95 in intraday trade. The index hit a low of 5,834.60 in intraday trade.
The total turnover on BSE amounted to Rs 1744 crore, higher than Rs 1557.21 crore on Monday, 8 July 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,308 shares rose and 1,005 shares fell. A total of 137 shares were unchanged. Breadth was strong earlier in the day.
The BSE Mid-Cap index rose 0.73% and the BSE Small-Cap index advanced 0.74%. Both these indices outperformed the Sensex.
The BSE Consumer Durables index (up 1.93%), BSE Power index (up 1.86%), BSE Realty index (up 1.65%), BSE Capital Goods index (up 1.47%), BSE Healthcare index (up 1.44%) and BSE Bankex (up 1.26%) outperformed the Sensex.
The BSE PSU index (up 0.57%), BSE IT index (up 0.53%), BSE Metal index (up 0.46%), BSE Teck index (up 0.39%), BSE Auto index (up 0.29%), BSE FMCG index (up 0.18%), BSE Oil & Gas index (up 0.04%) underperformed the Sensex.
From the 30-share Sensex pack, 22 stocks rose and rest of them fell. M&M (down 1.13%) and ONGC (down 0.83%), edged lower.
Index heavyweight and cigarette major ITC shed 0.17% to Rs 346.25
VST Industries lost 4.62% as the stock turned ex-dividend today, 9 July 2013, for final dividend of Rs 62.50 per share for the year ended 31 March 2013.
Reliance Industries (RIL) rose 0.54%. The government on 27 June 2013 agreed to double natural gas prices to industrial and retail consumers to help fund investment in exploration and reverse declining domestic gas output. The price of gas could go up to $8.4 per million metric British thermal units (mmBtu), effective 1 April next year, from current $4.2 mmBtu.
Bank stocks edged higher. Kotak Mahindra Bank (up 3.75%), Axis Bank (up 0.57%), ICICI Bank (up 0.78%), and HDFC Bank (up 1.27%), edged higher from the private sector banking space.
Karnataka Bank jumped 6.24% after the bank said during market hours today, 9 July 2013, it has joined hands with Reliance Capital by entering into a Memorandum of Understanding (MOU) for financing the Micro, Small and Medium Enterprises (MSMEs) through co-financing arrangement. The bank will provide fund based/non fund based finance to the eligible MSMEs referred by Reliance Capital, as per the norms of the bank. Shares of Reliance Capital rose 2.83.
Among PSU bank stocks, State Bank of India (up 0.94%), Canara Bank (up 3.34%), Union Bank of India (up 2.62%), Bank of India (up 2.24%), Bank of Baroda (up 1.42%) and Punjab National Bank (up 1.47%) edged higher.
Canara Bank rose 3.34% after the state-run bank announced during market hours today, 9 July 2013, that it has picked up 10% stake in Brickwork Ratings, a Bengaluru based credit rating agency. Canara Bank and Brickwork would collaborate in various activities related to Banking and Credit Rating, Canara Bank and Brickwork said in a joint statement. The strategic investment would help take up joint activities on risk management, training, research, financial inclusion, credit rating models, events, conferences etc.
Oriental Bank of Commerce rose 3.15% after the state-run bank announced during market hours today, 9 July 2013, that it has reduced base rate by 25 basis points (bps) to 10% with effect from 22 July 2013.
GRUH Finance gained 1.41% on good Q1 results. The company's net profit surged 26.4% to Rs 33.77 crore on 24% growth in total income to Rs 183.19 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced after market hours on Monday, 8 July 2013. GRUH Finance's disbursements rose 29% to Rs 566.86 crore in Q1 June 2013 over Q1 June 2012. Loan assets increased 32% to Rs 5727.21 crore as on 30 June 2013, from Rs 4338.49 crore as on 30 June 2012. The gross non-performing assets (NPAs) of the company stood at Rs 26.30 crore as on 30 June 2013, as against Rs 29.73 crore as on 30 June 2012.
GRUH Finance is a subsidiary of housing finance major HDFC. Shares of HDFC were up 0.69% at Rs 830.
Capital goods stocks edged higher. Siemens (up 0.99%), L&T (up 1.74%) and Bhel (up 1.65%), edged higher.
Most IT stocks rose on recent weakness of rupee against the dollar. Wipro (up 1.31%) and HCL Technologies (up 0.43%), edged higher. But, TCS fell 0.37%.
The rupee was trading at 60.14, stronger compared with Monday's close of 60.61/62. The rupee had hit a record low of 61.21 in intraday deals on Monday, 8 July 2013. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue.
Infosys rose 0.97%. The company's Q1 results will reflect the impact of salary hike, rupee depreciation and cross-currency movements. Investors will closely watch the management commentary on demand environment when Infosys unveils Q1 results on Friday, 12 July 2013. At the time of announcement of Q4 March 2013 results in April this year, Infosys had forecast 6% to 10% growth in revenue in both rupee terms and dollar terms for the year ending 31 March 2014 (FY 2014). Infosys has suspended the practice of giving EPS guidance or outlook on margins citing uncertainty in various factors.
Ramco Systems rose by maximum permissible 10% upper circuit at Rs 85.05 after the company said it has signed Vassallo Industries, a leading PVC manufacturer as its first cloud customer. Ramco Systems during trading hours today, 9 July 2013, announced the setting up of its fourth office in the Americas in Puerto Rico. Close on the heels of opening its new office, Ramco signed its first ERP on cloud customer in the region with Vassallo Industries.
Shares of companies in the education space rallied. Everonn Education (up 20%), Aptech (up 6.83%), NIIT (up 4.38%), MT Educare (up 5.24%), gained.
Educomp Solutions was locked at 10% upper circuit Rs 37.25 after the company said it has initiated discussion with lenders and approached corporate debt restructuring forum to restructure its rupee debt. The company said it has initiated discussions with its lenders and has approached corporate debt restructuring (CDR) forum to restructure its rupee debt to correct the asset liability mismatch on its balance sheet. The company has also approached the CDR forum for restructuring of debt in its K-12 business (second major business, operated through its subsidiary -- Educomp Infrastructure and School Management). The debt-restructuring exercise will enable the company to comprehensively address the liquidity issues by matching the maturity profile of debt with the relatively long-term nature of its investments. The restructuring will also allow the company to focus on and strengthen its core operations, Educomp Solutions said in a statement.
Shares of car major Maruti Suzuki India fell 0.56% on reports that the company has stopped the third shift at its diesel engine plant in Manesar due to low demand. With increase in prices of diesel, the demand for diesel cars has tapered off.
The company said during market hours on Monday, 8 July 2013, that production fell 25.36% to 61,668 units in June 2013 over June 2012. Earlier, the company had reported 12.6% fall in total sales to 84,455 units in June 2013 over June 2012. The company's domestic sales fell 7.8% to 77,002 units in June 2013 over June 2012. Exports declined 43% to 7,453 units in June 2013 over June 2012. The company announced the monthly sales data on 1 July 2013.
Steel Strips Wheels spurted 9.59% after the company said it bagged an European patent for innovative design concept in semi-full face wheels. The company said the design is an improvement on existing semi-full-face designs, specially modified to enhance the life-cycle of the product and higher pay load capacity. These wheels are used in passenger cars and have a styling similar to that of alloy wheels, but are economical than the alloy wheels.
In the conventional form, semi-full face designs pose a high challenge to the manufacturers in meeting the strength requirements (life-cycle requirements). The company said its innovation helps in eliminating the drawbacks of low fatigue life while retaining its excellent appeal similar to alloy wheels. In addition, it also helps in reducing the weight of the part, thus paring costs considerably, the company said in a statement.
Pharma stocks edged higher on renewed buying. Cipla, Dr Reddy's Laboratories, Lupin and Ranbaxy Laboratories rose by 0.98% to 1.82%.
Sun Pharmaceutical Industries rose 3.28% to Rs 1077. The stock hit record high of Rs 1,093.30 in intraday trade today, 9 July 2013.
Strides Arcolab dropped 6.51% to Rs 783.55. A bulk deal of 1 lakh shares was executed on the counter at Rs 788 per share at 13.39 IST on BSE today, 9 July 2013.
Hindalco Industries rose 0.4% and National Aluminium Company (Nalco) fell 0.34%. Alcoa Inc, the largest US aluminum producer, reported better than expected Q2 results on Monday. The company stuck to its forecast for 7% growth in global aluminum demand this year, led by a roughly 10% increase for aerospace needs. Alcoa reported results after close of US stock markets on Monday.
Other shares from the metal pack also gained. JSW Steel (up 0.16%), Hindustan Zinc (up 0.59%), Sterlite Industries (India) (up 2.18%) edged higher. Jindal Steel & Power fell 1.94%. Sail ended unchanged at Rs 47.95.
Realty stocks edged higher on renewed buying. Indiabulls Real Estate (up 5.7%), HDIL (up 5.88%), Sobha Developers (up 1.93%), and Unitech (up 0.74%), edged higher.
DLF rose 1.17%. The company on Saturday, 6 July 2013, said it has completed the Rs 325.38-crore deal to sell 150 megawatts (MW) wind turbine project in Gujarat to Bharat Light and Power. The transaction is in line with the DLF's objective of divesting its non core assets, the company said in a statement.
Anant Raj jumped 8.44% after the company said it has received a licence from the Directorate of Town & Country Planning, Haryana, to set up a residential group housing colony at Sector 63-A, Gurgaon, Haryana over an area admeasuring 26.075 acres. The project will have a saleble area of 2.8 million square feet. The company has also received licences to set up commercial project at Sector 63-A, Gurgaon, Haryana over an area admeasuring 4 acres and 2.95 acres. The project will have saleable area of 0.8 million square feet. .
UB group shares extended recent gains after Diageo last week said it has raised stake in liquor major United Spirits. United Spirits (USL) rose 2.69% to Rs 2,630.70. The stock struck a record high of Rs 2,655 in intraday trade today, 9 July 2013. Kingfisher Airlines was locked at 10% upper circuit filter. United Breweries (Holdings) was locked at 10% upper limit. United Breweries rose 0.82%.
USL on 4 July 2013, said that Diageo has completed the acquisition of a 14.98% stake in USL at Rs 1,440 per share. The shares were bought from United Breweries (Holdings) and other UB group companies. Following the acquisition, Diageo holds 25.02% stake in USL. Diageo and the UB Group are now co-promoters of USL. In a statement, Diageo said that its 25.02% shareholding in USL, together with the voting and other governance arrangements agreed with the UB group, including Dr. Vijay Mallya's continued role as Chairman of USL, will give Diageo control and enable Diageo to fully reflect the results of USL in its consolidated accounts, which it expects to do from 1 January 2014. Prior to this, Diageo will equity account its shareholding in USL, Diageo said.
On 27 May 2013, Diageo subscribed for a preferential allotment of new shares in USL amounting to 10% of the post-issue enlarged share capital. Separately, Diageo acquired 58,668 additional USL shares via a mandatory open offer to the shareholders of USL.
Sugar stocks gained. Bajaj Hindusthan (up 2.62%), Dhampur Sugar Mills (up 4.68%), Sakthi Sugars (up 4.97%), Balrampur Chini Mills (up 4.59%), Shree Renuka Sugars (up 0.87%) and Dwarikesh Sugar Industries (up 7.39%) gained.
The government today, 9 July 2013, raised the import duty on sugar to 15% from 10% with immediate effect to prevent a flood of cheap imports due to a sharp fall in global prices. Global sugar prices have fallen to their lowest levels in nearly three years. Benchmark ICE sugar prices traded in New York have fallen to around 16 cents a pound from 35 cents in February 2011.
MMTC was locked at 5% lower circuit at Rs 72.05, 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 last month. 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.
Reliance Power (RPower) rose 6.1% after the company today, 9 July 2013, announced that its 100 megawatts (MW) Concentrated Solar Power (CSP) Project in Rajasthan has received approval for carbon credits under United Nations Framework Convention on Climate Change (UNFCCC). This is the world's largest CSP project ever registered with the Clean Development Mechanism Executive Board (CDM-EB). CDM registration will allow the project to generate and sell Certified Emission Reductions (CER) internationally. These CERs translate into direct revenues for the company, RPower said in a statement.
Gitanjali Gems was locked at 5% lower circuit at Rs 165.35, also its 52-week low. Shares of Gitanjali Gems (GGL) have slumped a whopping 69.74% in 15 trading sessions from a recent high of Rs 546.50 on 18 June 2013. Credit rating agency CARE on Friday, 5 July 2013, revised the ratings assigned to the bank facilities/instruments of Gitanjali Gems (GGL) and its subsidiaries/step-down subsidiaries and placed them on credit watch. The revision in the ratings takes into account stressed liquidity position of GGL as evidenced by full utilisation of the existing working capital limits which along with the recent RBI guidelines on gold import for domestic purpose would further put pressure on its liquidity position, CARE said.
CARE further added that it has also taken into account the significant erosion in share price and market capitalisation of the company in the last two weeks of June 2013 which in CARE's opinion would have weakening effect on GGL's financial flexibility and liquidity. The rating has been placed on credit watch due to lack of adequate information in-order to take a final view, the rating agency added.
TTK Prestige surged 6.50% to Rs 3,821.30. The company unveils Q1 results on 15 July 2013.
European shares edged higher on Tuesday, 9 July 2013, after euro-zone finance ministers agreed on an aid disbursement for Greece and after Alcoa Inc. started the US earnings season with results that beat analysts' estimates. Key benchmark indices in UK, France and Germany were up by 0.5% to 1.03%.
UK's manufacturing unexpectedly shrank in May amid a drop in output of pharmaceuticals and metals, casting doubt on the strength of the recovery in the second quarter. Factory output fell 0.8% from April, when it declined 0.2%, the Office for National Statistics said today in London.
Greece secured a lifeline from the euro zone and the International Monetary Fund (IMF) on Monday but was told it must keep its promises on cutting public sector jobs and selling state assets to get all the cash. The 6.8 billion euro deal, which spares Greece defaulting on debt in August, will see Athens drip fed support under close watch from the euro zone and the IMF to ensure implementation of unpopular reforms.
Asian stocks rose on Tuesday, 9 July 2013, after Alcoa Inc. started the US earnings season with results that beat analysts' estimates. Key benchmark indices in China, Hong Kong, Singapore, Japan, South Korea and Taiwan rose by 0.37% to 2.58%. Indonesia's Jakarta Composite fell 0.67%.
China's inflation accelerated more than estimated in June as food prices climbed, while the decline in factory-gate prices extended its longest streak in a decade amid slowing economic growth and lower commodity costs. The consumer price index rose 2.7% from a year earlier, the National Bureau of Statistics said today in Beijing.
Trading in US index futures indicated that the Dow could gain 48 points at the opening bell on Tuesday, 9 July 2013. US stocks advanced on Monday, 8 July 2013, heading into the start of earnings season, building on gains sparked by last week's robust employment report and pushing the S&P 500 index closer to its all-time high set in May. Alcoa Inc, the largest US aluminum producer, reported results after the market's close, which is typically seen as the start of earnings season.
The minutes of Federal Open Market Committee's (FOMC) policy meeting held on 19 June 2013, will be released tomorrow, 10 July 2013. The minutes may provide more insight into the Federal Reserve's outlook on monetary stimulus. Fed Chairman Ben Bernanke is also due to deliver a speech tomorrow, 10 July 2013. 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.
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