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Monday, August 12, 2013
Mixed finish for bullions
Gold prices rise for first time in seven sessions
Bullion metal prices ended mixed on Wednesday, 07 2013 at Comex. Gold prices rose for first time in seven sessions while silver ended marginally lower.
Gold for December delivery ended higher by $2.8 (0.2%) at $1,285.3 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday.
September silver ended lower by $0.01 (1%) at $19.51 an ounce on Wednesday.
The gold market had been under moderate selling pressure for most of the day on Wednesday, when just before midday prices pushed above unchanged at the same time the U.S. dollar index hit its daily low and scored a fresh six-week low.
The gold and silver markets early on saw some residual selling pressure after some more “Fed speak” on Monday, in which two Federal Reserve officials made comments that the market place perceived as slightly favoring the hawkish side of U.S. monetary policy. The market place remains preoccupied with the timing of just when the U.S. central bank will begin to “taper” its monthly bond-buying program, also known as quantitative easing.
It remains a quieter, summertime trading atmosphere in many markets, including gold and silver. Such could continue to be the case until after the U.S. Labor Day holiday in early September.
The U.S. dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.5% on Wednesday.
Among economic data expected at Wall Street today, the weekly MBA Mortgage Index ticked up 0.2% to follow seven consecutive contractionary readings, including last week's decline of 3.7%.
Separately, June consumer credit increased by $13.8 billion, which follows the prior month's increase of $17.5 billion, and is higher than the $16.0 billion that had been expected.
At the MCX, gold prices for October delivery closed higher by Rs 63 (0.22%) at Rs 27,677 per ten grams. Prices rose to a high of Rs 27,718 per 10 grams and fell to a low of Rs 27,342 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed lower by Rs 16 (0.03%) at Rs 41,517/Kg. Prices opened at Rs 41,400/Kg and fell to a low of Rs 40,765/Kg during the day's trading.
Crude ends lower
Crude stockpiles drop less than expected
Crude-oil prices ended lower on Wednesday, 07 August 2013 at Nymex. U.S. crude-oil futures retreated on Wednesday after EIA reported a smaller-than-anticipated drawdown in weekly crude stocks.
Light and sweet crude for September ended lower by $0.93 (0.9%) at $104.37 a barrel on the New York Mercantile Exchange on Wednesday.
In the latest weekly inventory report, the Energy Information Administration reported that crude supplies decreased by 1.3 million barrels for the week ended 2 August to 363.3 million barrels. Market had expected a drop of 2 million barrels. The EIA also said crude stocks are near the upper limit of the average range for this time of year. It added that distillate inventories increased by 500,000 barrels last week, while gasoline stocks edged up by 100,000 barrels. Market had expected supplies for each to decline by 1 million barrels.
The commodity markets early on saw some residual selling pressure after some more “Fed speak” on Monday, in which two Federal Reserve officials made comments that the market place perceived as slightly favoring the hawkish side of U.S. monetary policy. The market place remains preoccupied with the timing of just when the U.S. central bank will begin to “taper” its monthly bond-buying program, also known as quantitative easing.
It remains a quieter, summertime trading atmosphere in many markets. Such could continue to be the case until after the U.S. Labor Day holiday in early September.
The U.S. dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.5% on Wednesday.
Among economic data expected at Wall Street today, the weekly MBA Mortgage Index ticked up 0.2% to follow seven consecutive contractionary readings, including last week's decline of 3.7%.
Separately, June consumer credit increased by $13.8 billion, which follows the prior month's increase of $17.5 billion, and is higher than the $16.0 billion that had been expected.
Among other energy products on Wednesday, September gasoline shed 4 cents, or 1.5%, to end at $2.87 a gallon, while September heating oil also lost 4 cents, or 1.5%, to $2.96 a gallon.
Natural gas for September delivery slid 7 cents, or 2.1%, to settle at $3.25 per million British thermal units.
At the MCX, crude oil for August delivery closed lower by Rs 50 (0.77%) at Rs 6,409/barrel. Natural gas for September delivery closed lower by Rs 4.9 (2.3%) at Rs 203.
Market opens higher on positive Asian stocks
Key benchmark indices edged higher in early trade on positive Asian stocks. The S&P BSE Sensex was up 138.36 points or 0.74%, up 48.98 points from the day's low and off 24.29 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
Bank pivotals were mostly lower after the Reserve Bank of India (RBI) on Thursday, 8 August 2013, announced fresh steps to drain cash from the banking system, as it stepped up efforts to stop the rupee's decline against the dollar. Pharma major Sun Pharmaceutical Industries (Sun Pharma) jumped after declaring Q1 result on Friday, 9 August 2013, when the stock market was closed on account of Ramzan Id. Another pharma firm Cipla gained after declaring Q1 result on Saturday, 10 August 2013.
Sterlite Industries (India) rose after the company after trading hours on Thursday, 8 August 2013, said the National Green Tribunal (NGT) has in its judgment upheld its interim order of 31 May 2013, and has allowed the company's Tuticorin Copper Smelter to continue to operate. ABB lost after reporting fall in Q1 net profit on Friday, 9 August 2013, when the stock market was closed on account of Ramzan Id. Aditya Birla Nuvo (ABNL) advanced after good Q1 result announced on Friday, 9 August 2013, when the stock market was closed on account of Ramzan Id.
Foreign institutional investors (FIIs) sold shares worth a net Rs 395.78 crore on Thursday, 8 August 2013, as per provisional data from the stock exchanges.
At 9:24 IST, the S&P BSE Sensex was up 138.36 points or 0.74% to 18,927.70. The index gained 162.65 points at the day's high of 18,951.99 in early trade. The index rose 89.38 points at the day's low of 18,878.72 in early trade.
The CNX Nifty was up 33.40 points or 0.6% to 5,599.05. The index hit a high of 5,610.65 in intraday trade. The index hit a low of 5,588.95 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 606 shares gained and 211 shares fell. A total of 29 shares were unchanged.
The total turnover on BSE amounted to Rs 88 crore by 09:20 IST.
Among the 30-share Sensex pack, 21 stocks gained and rest of them declined.
ONGC rose 0.26% ahead of its Q1 June 2013 result today, 12 August 2013.
DLF rose 0.29% ahead of its Q1 June 2013 result today, 12 August 2013.
Bank pivotals were mostly lower after the Reserve Bank of India (RBI) on Thursday, 8 August 2013, announced fresh steps to drain cash from the banking system, as it stepped up efforts to stop the rupee's decline against the dollar.
ICICI Bank rose 1.08%. HDFC Bank fell 1.49%.
State Bank of India lost 1.93%. The state-run bank unveils its Q1 result today, 12 August 2013.
The RBI said it would sell Rs 22000-crore of short-term cash management bills every week on Monday. The sale is in addition to Rs 12000-crore of Treasury bills and Rs 15000-crore of sovereign bonds the government sells every week to fund its fiscal gap.
Sterlite Industries (India) rose 1.93%. The company after trading hours on Thursday, 8 August 2013, said the National Green Tribunal (NGT) has in its judgment upheld its interim order of 31 May 2013, and has allowed the company's Tuticorin Copper Smelter to continue to operate. "We welcome this judgment and shall implement all recommendations laid down by the NGT appointed Expert Committee in a time bound manner. We will work closely with the regulatory authorities and the government and will continue to ensure the highest environment standards at our operations," the company said in a statement.
Sun Pharmaceutical Industries (Sun Pharma) jumped 6.97%. The company reported consolidated net loss of Rs 1276.10 crore in Q1 June 2013, as against net profit of Rs 795.55 crore in Q1 June 2012. The result was announced on Friday, 9 August 2013, when the stock market was closed on account of Ramzan Id.
The net loss on consolidated basis during the quarter is on account of a provision of Rs 2517 crore towards settlement for patent infringement litigation related to generic versions of 'Protonix'. Recurring net profit jumped 56% to Rs 1241 crore in Q1 June 2013 over Q1 June 2012.
Sun Pharma's consolidated net sales grew 31% to Rs 3482 crore in Q1 June 2013 over Q1 June 2012. Adjusted for the impact of one-time sales recorded in the domestic business in Q4 March 2012, which lowered Q1 June 2012 sales, the net sales have grown by 23% year on year (YoY) in Q1 June 2013.
Branded generic sales in India grew 44% to Rs 849 crore in Q1 June 2013 over Q1 June 2012. Adjusted sales growth of the domestic formulation business during the quarter was 11%. US finished dosages sale in dollar terms rose 28% to $364 million in Q1 June 2013 over Q1 June 2012. International formulation sales grew 19% to $81 million.
Sun Pharma's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) surged 26% to Rs 1531 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin was at 44%, lower than 46% reported in corresponding previous quarter.
Dilip Shanghvi, Managing Director, Sun Pharmaceutical Industries said: "All our businesses continue to perform in-line with our expectations. We remain focused on strengthening our existing businesses and developing a differentiated and specialty driven product basket. We also continue to review opportunities to expand and strengthen our global footprint".
Sun Pharma's consolidated R&D expense for Q1 June 2013 was Rs 205 crore, which is 6% of sales.
Cipla gained 3.06%. The company's net profit rose 18.5% to Rs 475 crore on 25.3% increase in gross revenues to Rs 2492 crore in Q1 June 2013 over Q1 June 2012. Operating margins grew by 24.8% to Rs 675 crore during the period under review. The result was announced on Saturday, 10 August 2013.
The company's material cost was at 40.8% of total sales in Q1 June 2013 as compared to 37.6% in Q1 June 2012.
The company's domestic revenue rose 16.7% to Rs 1132 crore in Q1 June 2013 over Q1 June 2012. The growth in domestic revenue was largely on account of growth in anti-asthma, anti-biotics/infectives, and cardiovascular therapy segments.
Exports of formulations jumped 27.7% to Rs 1034 crore in Q1 June 2013 over Q1 June 2012. Exports of Active Pharmaceutical Ingredients (APIs) fell 13.1% to Rs 146 crore in Q1 June 2013 over Q1 June 2012. The growth in export revenues was primarily due to growth in anti-retroviral, anti-asthma and anti-allergic segments, the company said.
TCS fell 1.19%. The company announced on Saturday, 10 August 2013, that it will set up a software development campus in Indore, Madhya Pradesh, with an investment of Rs 500 crore in two phases. The TCS Indore campus will be located in the SEZ Area allotted by the Madhya Pradesh state government. The world-class TCS campus will comprise software engineering blocks, training facilities, amphitheatre and other facilities to offer a holistic environment for knowledge professionals.
BPCL rose 0.33%. The company said on Saturday, 10 August 2013, that Bharat Petro Resources (BRPL), a wholly owned subsidiary of BPCL advises that Petrobras, operator of the block SEAL-M-426 in BM-SEAL-11 Concession, Brazil, has announced that it has discovered hydrocarbons during the drilling of the first appraisal well informally known as "Farfan 1", located in the concession area BM-SEAL-11, Block SEAL-M-426 in ultradeepwaters of the Sergipe Basin.
The results obtained in this well confirm the extension of the light oil reservoirs previously discovered in the Farfan discovery well within turbidite sandstones of Upper Calpanian age (Columbia Formation). The well is currently under drilling which will be followed by drill stem test (DST) to confirm the flow potential of the reservoir. The consortium plans to continue with the Discovery Assessment Plan, under approval by the Brazilian Regulatory Agency, ANP.
Petrobas is the operator of the concession BM-SEAL-11 with 60% interest in partnership with IBV Brazil (a 50:50 joint venture company, formed by wholly owned subsidiaries of Bharat PetroResources and Videocon Industries) holding the remaining 40%.
ABB lost 2.33%. The company's net profit fell 23.07% to Rs 40 crore on 7.42% decline in revenue to Rs 1720 crore in Q2 June 2013 over Q2 June 2012. The result was announced on Friday, 9 August 2013, when the stock market was closed on account of Ramzan Id.
ABB said that it continues to follow a policy of cash over revenue in its businesses to mitigate the credit risk in the market. Localized offerings also enabled the company to stay competitive in a tough economic environment. ABB said that savings from operational excellence initiatives and cost take out programs helped offset the impact of price pressures and the higher cost of working capital.
ABB's adjusted operational earnings before interest, taxation, depreciation and amortization (EBITDA) rose 27.58% to Rs 111 crore in Q2 June 2013 over Q2 June 2012. Adjusted EBITDA margin improved to 6.4% from 4.7% a year ago.
ABB's order intake declined 15.35% to Rs 1731 crore in Q2 June 2013 over Q2 June 2012, reflecting a challenging business environment as customers continue to exercise caution on large investments. ABB said it continues to focus on balancing its risks and returns.
ABB said that the company's thrust on exports and new business streams yielded results with export orders demonstrating clear growth over successive quarters. Orders from sectors such as renewable energy continued on their growth trajectory.
The company's order backlog stood at Rs 8235 crore as on 30 June 2013, as against Rs 9175 crore as on 30 June 2012.
Commenting on the company's Q2 results, Bazmi Hussain, MD, ABB said: "The economic environment is now increasingly depressed. Our multiple productivity and operational excellence initiatives are yielding results. We are confident that our broad portfolio, cost take out programs, localization initiatives and the ability to find new opportunities will give us pole position as market eventually revives".
Aditya Birla Nuvo (ABNL) advanced 2.56%. The company's consolidated net profit rose 24.16% to Rs 331.33 crore on 7.92% growth in revenue to Rs 5744.54 crore in Q1 June 2013 over Q1 June 2012. The result was announced on Friday, 9 August 2013, when the stock market was closed on account of Ramzan Id.
Industrial production is seen registering a decline of 1.5% in June 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production had registered a contraction of 1.6% in May 2013. The government will unveil industrial production data for June 2013 today, 12 August 2013.
Consumer price inflation is expected to ease a bit in July 2013. The combined consumer price index (CPI) for urban and rural India is expected to ease at 9.7% in July 2013, from 9.9% in June 2013, as per the median estimate of a poll of economists carried out by Capital Market. The government will also unveil the CPI data for July 2013 today, 12 August 2013.
Asian markets edged higher on Monday, 12 August 2013, after data showed that Chinese banks issued more credit than estimated in July 2013. Key benchmark indices in China, Hong Kong, Singapore, South Korea, Japan and Taiwan were up by 0.02% to 1.6%. Indonesia's Jakarta Composite fell 0.47%.
Japan's economy grew an annualized 2.6% in the April-June period, the Cabinet Officer reported Monday, cooling sharply from a rapid 4.1% gain in the first calendar quarter. On a seasonally adjusted quarterly basis, gross domestic product rose 0.6% from the first quarter's 0.9% increase.
US stock indexes declined Friday, with the Dow Jones Industrial Average halting its longest weekly winning streak since August of last year.
The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
Bulls to ring bell on Dalal Street; SBI results eyed
The Indian stock markets are expected to witness positive start on Dalal Street ahead of key economic data as the global cues looked supportive. SGX Nifty is trading 37.50 points higher.
Events for the day:
IIP data to be announced
Results: SBI, DLF, Hindustan Copper, Tech Mahindra, Marico, Britannia, Indraprasth Gas, HPCL, ONGC to announce quarterly results
Engineers India to quote Final Dividend
Headlines for the day:
Sun Pharma to pay Rs2,517 cr to settle patent suit
Maruti to launch rival to Hyundai's Grand i10 early next year
TCS to set up Rs500 cr eco-friendly software development campus in Indore
Indian Indices:
The Indian equities are set to start the first trading session of the week in the green zone as the global cues look supportive. SGX Nifty is trading 37.50 points higher.
Investors will focus on the macros as the June IIP data is due today. State Bank of India (SBI), will report their numbers today. Continued pressure on asset quality and operating profit is likely on the country's largest bank.
On Thursday (August 08, 2013), the S&P BSE Sensex wrapped trade at 18789.34, up by 124.46 points while the NSE Nifty rose 46.55 points to settle at 5565.65.
Global Indices:
Asian markets were trading firm on Monday. Japanese shares fell to a six-week low on Monday and the yen strengthened after data showed Japan's economy grew at a slower-than-expected pace in April-June, triggering investors to pare back some of their risk exposure.
European stocks climbed on Friday as strong Chinese factory data fuelled a rally in mining shares, while buoyant euro zone banks propelled French and Spanish benchmark indices to year highs.
US stocks fell on Friday and posted their biggest weekly decline since June as investors focused on when the Federal Reserve would begin to scale back its stimulus.
Daily News Roundup - Aug 12 2013
Steel Authority of India Ltd (SAIL) has operationalised the nation’s largest blast furnace at its Rourkela Steel Plant. It will increase SAIL’s hot metal capacity by 2.5 mn tonnes per annum (mtpa) to 4.5 mtpa, the company said in a statement. (BL)
Syndicate Bank is expecting credit to grow at 15-16 % this fiscal, and a net interest margin of about 2.80 %. (BL)
Tata Motors-owned Jaguar Land Rover (JLR) is considering a major expansion plan at its UK factory which could create as many as 1,000 jobs. (ET)
The competition in the compact car segment is hotting up, with Maruti Suzuki India set to launch a brand new model early next year in response to rival Hyundai's soon-to-be-launched Grand i10. (ET)
Surya Roshni is aiming to achieve revenue of Rs2.5bn from LED segment by 2016. (ET)
Bombay Rayon Fashions, which owns brands such as Vero Moda and Jack & Jones, has asked its lenders to convert 10% of the total loan into equity to lessen its debt burden of Rs41bn. (ET)
Ending months of negotiation, Irish building materials giant CRH has agreed to buy Sree Jayajothi Cements (SJJC) from the Shriram Group for an enterprise valuation of around Rs14bn said multiple sources involved in the transaction. (ET)
Sun Pharmaceutical Industries has said it will pay its dues of Rs 25.17bn soon as part of settlement agreement with Wyeth (now a division of Pfizer Inc.) and Altana Pharma AG (now known as Takeda GmbH). (ET)
V-Guard Industries is eyeing a 25 % jump in sales revenue this fiscal to Rs17bn driven by new products, booming electrical cable and solar heater businesses and increasing focus on non-South markets. (ET)
The Aditya Birla group is planning to invest US$1 bn in setting up a chemical/fertiliser plant in the US to take advantage of the falling gas prices in that country. (BS)
Tata Group is preparing a blueprint to promote the Tata brand globally and has identified the US, Europe and Africa as areas of focus. (BS)
Having already strengthen its presence in Southern and Western region, now Kalyan Jewellers is planning to expand in the Northern region. (BS)
Lenders to Kingfisher Airlines have taken possession of Kingfisher House, the airline’s headquarters near Mumbai airport, after the guarantors — chairman Vijay Mallya and United Breweries (Holdings) Ltd - failed to pay the dues. (BS)
The Airports Authority of India is set to privatise the operation and maintenance of the Chennai airport. (BL)
Economy Snippets
With public sector banks showing a marked increase in bad loans, the Finance Ministry has asked these banks to diligently conduct quarterly inspection of units/enterprises jointly financed by them.(BL)
The Reserve Bank will soon set up a high-level panel of eminent experts from the banking and financial sector to screen applications of 26 aspirants for new banking licences.(ET)
Good monsoon has brought some respite to the power sector as the peak power deficit for the month of July dropped to 4.5 %from 5.8 % in June.(ET)
India imported over 2 mn tonnes (MT) of urea in the first four months of this fiscal worth US$ 614 mn to meet domestic demand, which is expected to further rise on good monsoon.(ET)
Nifty closes above 5,500; Volatility spikes over 22-mark
It was another day of selling! But this time it was IT and FMCG counters which bore the brunt.
After opening on a flat note, the Indian equity market extended its decline with the Nifty sliding below the 5,500 mark amid some offloading in index heavyweights like ITC and Hindustan Unilever. As the day progressed, IT bellwethers like HCL Technologies, TCS and Infosys came under bear attack dragging the indices lower. Post lunch, the Nifty bounced back and barely managed to close above the 5,500 mark led by gains in realty, metals, power, oil and gas and banking stocks. Midcap and small-cap stocks outperformed the benchmark indices gaining 0.7% and 1.2%, respectively.
NMDC surged higher by 5.5% to close at Rs. 100 per share after the company announced better-than-expected Q1 FY14 results. Commenting on the same, Amar Ambani, Head of Research at IIFL, said, "NMDC’s topline and profit after tax of Rs. 28.7bn and Rs. 15.7bn respectively was higher than our estimate. We have a buy rating on the stock and would maintain it."
The Sensex closed at 18,664, down 86 points, while the Nifty shut shop at 5,519, down 23 points over Tuesday's close.
The advance-decline ratio favoured the bulls. On the Bombay Stock Exchange, 1,247 stocks advanced against 1,043 declines, while 142 stocks remained unchanged.
Volatility, as measured by India VIX, slipped by 3% at 22.73. It hit a day’s high of 23.28 and low of 21.86.
Stocks in News:
Lupin, HCL Technologies, HDFC, Sun Pharmaceutical, Asian Paints, ITC, TCS, Grasim, Bajaj Auto and Larsen & Toubro lost out in trade while Tata Power, DLF, BPCL, NMDC, Ranbaxy, Tata Steel and Reliance Infrastructure gained.
Tata Motors recovered sharply from the day’s low to close flat at Rs. 285 per share. The automaker's posted a Q1 FY14 profit after tax of Rs. 1,726cr as compared to Rs. 2245cr, down 23.1% year-on-year.
Lupin crashed a massive 7.26%, or Rs. 64.45, to close at Rs. 823.1 after posting its Q1 FY14 earnings. The drug major posted a net profit of Rs. 4.01bn as against Rs. 2.8bn, up 43.2% YoY. Q1 sales stood at Rs. 24.21bn while EBITDA margins improved to 24.3% from 20.6% in the same quarter last year.
SpiceJet ended 5.53% higher at Rs. 26.7 on news that the airline is in active discussions with Singapore-based budget carrier Tiger Air for a possible stake sale.
Karur Vysya Bank closed at Rs. 336.90, down 2.88%, after hitting its 52-week low of Rs. 332 in trade today. The bank posted net profit of Rs. 1.2bn, down 18%. Q1 provisions came in at Rs. 1.63bn while net interest income stood at Rs. 3.32bn.
Financial Technologies stock closed up 3.43% at Rs. 164.55 after the National Spot Exchange disclosed stock positions as on July 31, 2013 and revealed the names of borrowers.
A better start for the week
We are confronted with insurmountable opportunities. - Walt Kelly
A string of macroeconomic data is due to be released in a holiday shortened week along with last leg of Q1 results. The Rupee movement will be in focus even as expectations are that a few more measures may be announced to strengthen the rupee. Investors will also keep an eye on the monsoon session of parliament as key bills such as the Food security bill, Land Acquisition and Rehabilitation, Right of Citizens to Time Bound Delivery of Goods and Services and the much awaited Pensions and Insurance bills are still in the pipeline. Besides the crucial pension and insurance bills, other economic agenda on parliament’s itinerary include the Direct Taxes Code Bill and changes in the SEBI law.
The outlook is a positive start to begin with. Global cues are mixed. Japan’s economy grew at an annualised 2.6% in the second quarter, a third straight quarter of expansion. The government also said growth in the first quarter was at a lower rate than previously reported with GDP at 3.8% instead of 4.1%. While the Nikkei is lower, the other Asian markets are gaining strength. Hong Kong's Hang Seng index and South Korea's Kospi index are marginally higher while China's Shanghai index was trading over a percent higher. On Friday, US indices fell. The Dow lost half a percent while the Standard & Poor's 500 Index and Nasdaq were down marginally.
Companies bill, 2012 was passed by the parliament on Thursday after a gripping speech by the Minister of Corporate Affairs –Sachin Pilot. The bill has made provisions for setting up one person companies and made mandatory for corporates to keep 2% of their profits for corporate social activities among many others. The bill replaces the relic of companies law, 1956 and was hailed by corporate India as a game changer.
Industrial production (IIP) and consumer price inflation (CPI) numbers will be released on Monday while Wholesale price index Inflation (WPI) data will be released on Wednesday. Industrial production had registered a contraction of 1.6% in May and the street expects it to contract by 1.5% in June. According to estimates, CPI is likely to improve to 9.7% in July from 9.9% in May.
Real estate behemoth DLF along with HPCL, Hindustan Motors, India Cements, India Hotels, Britannia Inds, Gammon India, Essar India will announce their June quarter earnings on Monday. Earnings of blue chips like SBI and Tata Steel will also hog the spotlight this week, other major earnings lined up in the week are ONGC, Mahindra & Mahindra and Hindalco Industries.
Volumes remain dull in both the cash and derivative segments indicating meagre investor interest. However, FIIs remained net buyers in equity in most sessions last week. Their net purchase stood at $189 mn in equity in August so far while their net sales in debt in $695 mn.
The rupee is likely to appreciate after RBI’s new measures (to sell Rs. 22,000cr worth of cash management bills every Monday) kick in from Monday. The measures are aimed at mopping the liquidity from the market and to decrease Rupee volatility versus the dollar. The government has taken a slew of liquidity tightening measures since mid-July to rescue INR which remains the worst performing Asian currency.
Indian generic makers will be watched on Monday after news came out that the US health regulator FDA is hiking the fees for generic drugmakers by up to 48% from October, making Indian generic drugs costlier in America.
Drug maker Sun Pharmaceutical Industries announced that it will pay its dues of Rs 2,517.41 cr soon as part of settlement agreement with Wyeth (now a division of Pfizer Inc.) and Altana Pharma AG (now known as Takeda GmbH).
After marking its entry in the nuclear submarine club last week India will launch its first indigenous aircraft carrier INS Vikrant on Monday. The development comes in the backdrop of tensions with Pakistan and increasing incursions from China.
Gujarat Chief Minister and Bharatiya Janata Party (BJP) leader Narendra Modi on Sunday backed the creation of Telangana State even as agitations against a separate State reached a high pitch in the city.
Subramanian Swamy on Sunday announced the merger of his Janata Party with BJP ahead of the 2014 general elections.
Results watch: ONGC, SBI, Britannia Inds, Indian Hotels, Marico, HPCL, DLF, Tech Mahindra, Gammon India, GVK Power, Ajmera Rlty, Hindustan Copp, Hindustan Motors, Aarti Inds, Bajaj Hind, Eros Intl Media, AIA Engineering, Anil, Aurionpro Sol, BAG Films, B2B Software., Bang Overseas, Balmer Lawr, Birla Shloka,BSEL Infra, Cantabil Retail, CMS Infotech, Cyber Media, DCM Shriram Inds, Dhanuka Agri, DHANLAK BANK, Dollex Inds, Dynacons Tech, Esaar India, Ferro Alloys, Global Offshore, HATHWAY CAB, Hind Rectifiers, Indraprastha Gas, India Cements, Inox Leisure, Intrasoft Tech, IOL Chemicals, Jayaswal Neco, JPPOWER, Jyothy Lab, Jyoti, Kamat Hotels, Lahoti Overseas, Manjushree Techno, Majestic Auto, Monnet Inds, Nicco Corp, Olympic Cards, Orient Green Power, NRB Ind, Precision Pipes, Polytex India, PG Electroplast, Peninsula Land, Rajshree Sug, Rane Holdings, Remi Metals, RPP Infra, Sambhaav Media, Shakti Pumps, Simbhaoli Sug, Satra Prop, Splash Media & Infra, Steel Exchange, Sundaram Clayton, Suryachakra Pow, Talbros Auto, Sunteck Realty, Themis Medicare, Tulip Telecom, Unisys Soft, United Bank, ZANDUREALTY, Wanbury, Visa Steel, Viceroy Hotels, Voltamp Trans, Winsome Diamonds.
Trends in FII flows: The FIIs were net sellers of Rs3.95bn in the cash segment on Thursday, while the domestic institutional investors (DIIs) were net buyers of Rs5.16bn, as per the provisional figures released by the NSE.
The foreign funds were net buyers of Rs19.23bn in the cash segment on Wednesday, according to the SEBI figures.
Global Data Watch: Industrial Production (YoY) (Jun) JPY, Capacity Utilization (Jun) JPY, Industrial Production (MoM) (Jun) JPY, Machine Tool Orders (YoY) (Jul)Preliminar JPY, Current Account (Jun) EUR, Real Retail Sales (YoY) (Jun) CHF, 10-y Bond Auction EUR, Consumer Price Index (MoM) (Jul) EUR, Consumer Price Index (YoY) (Jul) EUR, Cumulative Industrial Output (Jun) INR, Industrial Output (Jun) INR, Monthly Budget Statement (Jul) USD, RICS Housing Price Balance (Jul) GBP, BoJ Monetary Policy Meeting Minutes JPY, Machinery Orders (MoM) (Jun) JPY, Machinery Orders (YoY) (Jun) JPY .
In other news in the media:
Steel Authority of India Ltd (SAIL) has operationalised the nation’s largest blast furnace at its Rourkela Steel Plant. It will increase SAIL’s hot metal capacity by 2.5 mn tonnes per annum (mtpa) to 4.5 mtpa, the company said in a statement. (BL)
Syndicate Bank is expecting credit to grow at 15-16 % this fiscal, and a net interest margin of about 2.80 %. (BL)
Tata Motors-owned Jaguar Land Rover (JLR) is considering a major expansion plan at its UK factory which could create as many as 1,000 jobs. (ET)
The competition in the compact car segment is hotting up, with Maruti Suzuki India set to launch a brand new model early next year in response to rival Hyundai's soon-to-be-launched Grand i10. (ET)
Surya Roshni is aiming to achieve revenue of Rs2.5bn from LED segment by 2016. (ET)
Bombay Rayon Fashions, which owns brands such as Vero Moda and Jack & Jones, has asked its lenders to convert 10% of the total loan into equity to lessen its debt burden of Rs41bn. (ET)
Ending months of negotiation, Irish building materials giant CRH has agreed to buy Sree Jayajothi Cements (SJJC) from the Shriram Group for an enterprise valuation of around Rs14bn said multiple sources involved in the transaction. (ET)
Sun Pharmaceutical Industries has said it will pay its dues of Rs 25.17bn soon as part of settlement agreement with Wyeth (now a division of Pfizer Inc.) and Altana Pharma AG (now known as Takeda GmbH). (ET)
V-Guard Industries is eyeing a 25 % jump in sales revenue this fiscal to Rs17bn driven by new products, booming electrical cable and solar heater businesses and increasing focus on non-South markets. (ET)
The Aditya Birla group is planning to invest US$1 bn in setting up a chemical/fertiliser plant in the US to take advantage of the falling gas prices in that country. (BS)
Tata Group is preparing a blueprint to promote the Tata brand globally and has identified the US, Europe and Africa as areas of focus. (BS)
Having already strengthen its presence in Southern and Western region, now Kalyan Jewellers is planning to expand in the Northern region. (BS)
Lenders to Kingfisher Airlines have taken possession of Kingfisher House, the airline’s headquarters near Mumbai airport, after the guarantors — chairman Vijay Mallya and United Breweries (Holdings) Ltd — failed to pay the dues. (BS)
The Airports Authority of India is set to privatise the operation and maintenance of the Chennai airport. (BL)
With public sector banks showing a marked increase in bad loans, the Finance Ministry has asked these banks to diligently conduct quarterly inspection of units/enterprises jointly financed by them.(BL)
The Reserve Bank will soon set up a high-level panel of eminent experts from the banking and financial sector to screen applications of 26 aspirants for new banking licences.(ET)
Good monsoon has brought some respite to the power sector as the peak power deficit for the month of July dropped to 4.5 %from 5.8 % in June.(ET)
India imported over 2 mn tonnes (MT) of urea in the first four months of this fiscal worth US$ 614 mn to meet domestic demand, which is expected to further rise on good monsoon.(ET)
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