India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Monday, April 07, 2008
Market reverses course on strong Asian cues
Trading for the week has started on a buoyant note with Sensex clocking handsome gains today after it had slumped 1,028 points last week. Market spurted on strong global cues. IT, banking, metal and FMCG stocks rose. ICICI Bank and Ranbaxy Laboratories were major gainers from the Sensex pack. Maruti Suzuki India and Ambuja Cements were major losers from the Sensex pack. The market breadth was strong. All the sectoral indices on BSE were in green.
The 30-share BSE Sensex provisionally ended up 438.34 points or 2.86% at 15,781.46. At the day’s high of 15,851.88, the Sensex rose 508.76 points in mid-afternoon trade. At the day’s low of 15,321.56 Sensex lost 21.56 points in early trade.
The broader based S&P CNX Nifty was up 121.05 points or 2.6% at 4,768.05 as per provisional figures.
The BSE clocked a turnover of Rs 4,779 crore today compared to a turnover of Rs 4,966.33 crore on Friday 4 April 2008.
In Europe, key benchmark indices in France, Germany’s DAX and UK were up by between 0.63% to 0.87%.
Asian stocks nudged higher today, 7 April 2008, as a worse-than-expected US payrolls data on Friday, 4 April 2008, which showed a fall of 80,000 jobs in March 2008, raised expectations of further interest rate cut by the US Federal Reserve. Key benchmark indices in Hong Kong, China, Japan, Singapore, South Korea, and Taiwan were up by between 0.4% to 4.45%. US equities held steady on Friday after the poor showing in employment and despite worries about banking sector earnings.
Meanwhile, Securities and Exchange Board of India (Sebi) chairman C.B. Bhave today said the Sebi will hold a meeting with foreign funds and their custodians to discuss issues regarding the proposed margins imposed on institutional investors. Sebi had said last month that institutional investors will be required to pay a margin on trades executed in the cash market by the next day, effective from 21 April 2008.
The market breadth was strong: on BSE 1545 shares advanced as compared to 1081 that declined. 55 shares remained unchanged.
The BSE Mid-Cap index up 1.44% to Rs 6,353.07 and BSE Small-Cap index up 1.01% to 7,793.22.
Banking stocks galloped. ICICI Bank (up 6.06% to Rs 810), State Bank of India (up 4.77% to Rs 1,682) and HDFC Bank (up 0.88% to Rs 1,303.50) edged higher.
FMCG stocks spurted. United Spirits (up 5.27% to Rs 1,669.90), ITC (up 5% to Rs 210.85) and Hindustan Unilever (up 5.15% to Rs 254) edged higher.
Metal stocks rose. National Alluminium Company (up 4.38% to Rs 450), Sterlite Industries (up 4% to Rs 764), Tata Steel (up 2.85% to Rs 679.50), Hindalco Industries (up 2.58% to Rs 173) and Steel Authority of India (up 1.85% to Rs 167.70) edged higher.
IT stocks rose. India’s largest IT services exporter by sales Tata Consultancy Services rose 3.44% to Rs 900.10. The company has signed a new multi-year contract with Chrysler LLC to provide a comprehensive portfolio of IT services. Wipro (up 4.91% to Rs 436), 0.62.1% to Rs 1,492.20) edged higher.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries rose 3.6% to Rs 2,405.70. As per reports, Reliance Industries is planning to enter into the rig manufacturing business besides investing $2.5 billion to enter into petrocoke gasification.
India’s second largest telecom services provider by sales Reliance Communications rose 1.17% to Rs 506. It has reportedly formed a joint venture with a local firm to launch GSM mobile services in Sri Lanka by this year.
India's largest state-run oil exploration firm in terms of revenue ONGC rose 1.19% to Rs 1,017.85.ONGC Videsh (OVL), the overseas arm of Oil and Natural Gas Corporations (ONGC), will reportedly sign an agreement on 8 April 2008 to take a 40% stake in the San Cristobal oilfield in Venezuela. OVL will make a total investment of $355.7 million comprising signature bonus of $173.1 million for the stake, the reports added.
India’s largest truckmaker by sales Tata Motors rose 3.1% to Rs 632.65 on reports it had raised the price of trucks and buses by an average of 3.5 % from 1 April 2008 to offset higher raw material costs.
Bharti Airtel (up 4.41% to Rs 818.40), Ranbaxy Laboratories (up 5.59% to Rs 483.85), Jaiprakash Associates (up 4.84% to Rs 231.95) and Grasim Industries (up 3.39% to Rs 2627.55) edged higher from the Sensex pack.
Maruti Suzuki India (down 0.57% to Rs 759.90), Reliance Energy (down 0.3% to Rs 1,162.90) and Ambuja Cements (down 0.84% to Rs 118.10) edged lower from the Sensex pack.
Sita Shree Food Products was trading at a premium of 46.33% at Rs 43.90 on BSE on its debut today. The company had priced the IPO at the top end of the Rs 27 to Rs 30 price band.
Sensex had plunged 489.43 points or 3.09% at 15,343.12 on Friday, 4 April 2008, on fears of monetary tightening by the Reserve Bank of India after the latest data showed a surge in inflation to a 3-year high of 7% in late March 2008.
The next major trigger for the market is Q4 March 2008 results of India Inc. Analysts will be closely watching what the company managements have to say about the outlook for the year ending March 2009 (FY 2009). Analysts will also scrutinize disclosures that companies may make regarding foreign exchange derivatives products that they have bought on the advice of their bankers. A steep decline in the value of the US dollar against the Japanese Yen and the Swiss Franc hit Indian corporates which have used these two currencies (Yen and Franc) extensively to swap their rupee denominated debt.
As regards Q4 March 2008 results, Morgan Stanley expects 23% growth in net earnings of 104 out of 108 firms in its Indian coverage universe in Q4 March 2008 over Q4 March 2007
Market up 450 points
The market continued its upward journey in afternoon trade as European markets which opened after Indian market, nudged higher in early trade. Market had spurted earlier in the day tracking strong Asian markets. IT, banking and FMCG stocks rose. ITC and State Bank of India were major gainers from the Sensex pack. Maruti Suzuki India and Bharat Heavy Electricals were major losers from the Sensex pack. The market breadth was positive. All the sectoral indices on BSE were in green.
At 13:22 IST, the 30-share BSE Sensex was up 461.38 points or 2.99% at 15,801.30. At the day’s high of 15,823.12, the Sensex rose 480 points in afternoon trade. At the day’s low of 15,321.56 Sensex lost 21.56 points in early trade.
The broader based S&P CNX Nifty was up 135.05 points or 2.91% at 4,782.05.
In Europe, key benchmark indices in France, Germany’s DAX and UK were up by between 0.39% to 0.81%.
Asian stocks nudged higher today, 7 April 2008, as a worse-than-expected US payrolls data on Friday, 4 April 2008, which showed a fall of 80,000 jobs in March 2008, raised expectations of further interest rate cut by the US Federal Reserve. Key benchmark indices in Hong Kong, China, Japan, Singapore, South Korea, and Taiwan were up by between 0.4% to 4.45%. US equities held steady on Friday after the poor showing in employment and despite worries about banking sector earnings.
Meanwhile, Securities and Exchange Board of India (Sebi) chairman C.B. Bhave today said the Sebi will hold a meeting with foreign funds and their custodians to discuss issues regarding the proposed margins imposed on institutional investors. Sebi had said last month that institutional investors will be required to pay a margin on trades executed in the cash market by the next day, effective from 21 April 2008.
The market breadth was strong: on BSE 1410 shares advanced as compared to 1036 that declined. 62 shares remained unchanged.
The BSE Mid-Cap index up 1.18% to Rs 6,337.06 and BSE Small-Cap index up 0.64% to 7,764.12.
FMCG stocks spurted. United Spirits (up 4.34% to Rs 1,655.20), ITC (up 5.83% to Rs 212.50) and Hindustan Unilever (up 4.43% to Rs 252.50) edged higher.
Banking stocks galloped. ICICI Bank (up 5.7% to Rs 806.50), State Bank of India (up 5.77% to Rs 1,698) and HDFC Bank (up 1.85% to Rs 1,316) edged higher.
IT stocks rose. India’s largest IT services exporter by sales Tata Consultancy Services rose 4.93% to Rs 913.10. The company has signed a new multi-year contract with Chrysler LLC to provide a comprehensive portfolio of IT services. Wipro (up 5.39% to Rs 438), Satyam Computer Services (up 2.97% to Rs 437.90) and Infosys (up 2.5% to Rs 1,520) edged higher.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries rose 2.9% to Rs 2,405. As per reports, Reliance Industries is planning to enter into the rig manufacturing business besides investing $2.5 billion to enter into petrocoke gasification.
India’s second largest telecom services provider by sales Reliance Communications (RCom) rose 2.27% to Rs 511.50. It has reportedly formed a joint venture with a local firm to launch GSM mobile services in Sri Lanka by this year.
India's largest state-run oil exploration firm in terms of revenue ONGC rose 2.99% to Rs 1,036.ONGC Videsh (OVL), the overseas arm of Oil and Natural Gas Corporations (ONGC), will reportedly sign an agreement on 8 April 2008 to take a 40% stake in the San Cristobal oilfield in Venezuela. OVL will make a total investment of $355.7 million comprising signature bonus of $173.1 million for the stake, the reports added.
India’s largest truckmaker by sales Tata Motors rose 2.62% to Rs 629.70 after reports of company raising the price of trucks and buses by an average of 3.5 % from 1 April 2008 to offset higher raw material costs.
Bharti Airtel (up 5.23% to Rs 825), Ranbaxy Laboratories (up 5.51% to Rs 483.50), Jaiprakash Associates (up 4.29% to Rs 230.75) and DLF (up 2.34% to Rs 622) edged higher from the Sensex pack.
Maruti Suzuki India (down 1.52% to Rs 752.60), Ambuja Cements (down 0.25% to Rs 118.80) and Reliance Energy (down 0.29% to Rs 1,163) and Bharat Heavy Electricals (down 1.72% to Rs 1608) edged lower from the Sensex pack.
Sita Shree Food Products was trading at a premium of 50.83% at Rs 45.25 on BSE on its debut today. The company had priced the IPO at the top end of the Rs 27 to Rs 30 price band.
Petron Engineering Construction rose 4.87% to Rs 219 after it secured a contract worth Rs 84.27 crore from Bharat Oman Refineries for mechanical works at one of its refineries.
As per provisional data, foreign funds sold shares worth a net Rs 848.57 crore on Friday, 4 April 2008. Domestic funds bought shares worth a net Rs 579.84 crore.
Foreign funds were net sellers of index futures to the tune of Rs 517.24 crore and they net sold index options worth Rs 117.37 crore on Friday. FIIs were net sellers of stock futures to the tune of Rs 139.72 crore. They were net sellers of stock options to the tune of Rs 3.20 crore.
Sensex plunged 489.43 points or 3.09% at 15,343.12 on Friday, 4 April 2008, on fears of monetary tightening by the Reserve Bank of India after the latest data showed a surge in inflation to a 3-year high of 7% in late March 2008.
The next major trigger for the market is Q4 March 2008 results of India Inc. Analysts will be closely watching what the company managements have to say about the outlook for the year ending March 2009 (FY 2009). Analysts will also scrutinize disclosures that companies may make regarding foreign exchange derivatives products that they have bought on the advice of their bankers. A steep decline in the value of the US dollar against the Japanese Yen and the Swiss Franc hit Indian corporates which have used these two currencies (Yen and Franc) extensively to swap their rupee denominated debt.
As regards Q4 March 2008 results, Morgan Stanley expects 23% growth in net earnings of 104 out of 108 firms in its Indian coverage universe in Q4 March 2008 over Q4 March 2007.
Sunday, April 06, 2008
Market falls for the week
The market edged lower last week as concerns about potential losses of corporate India on forex derivatives resurfaced after the Institute of Chartered Accountants of India (ICAI) asked companies to disclose losses on a mark-to-market basis incurred on derivatives trades from the current financial year onwards (year ending March 2008), as a precursor to making a new accounting standard -- the AS-30 -- mandatory from 1 April 2011. This may hit Q4 March 2008 and FY 2008 (year ending March 2008) bottom line of Indian firms.
Some arbitrageurs and jobbers stayed away from the market on 1 April 2008 protesting change in tax treatment of the Securities Transaction Tax (STT) that came into force from that day. The protest led to low volumes, which saw share prices swing wildly on the first day of the new financial year FY 2009 (year ending March 2009).
India's wholesale price index (WPI) rose 7% in the 12 months to 22 March 2008, accelerating from the previous week's rise of 6.68%. The rate is the highest since 4 December 2004.
The 30-share BSE Sensex fell 1,028.17 points or 6.28% at 15,343.12 in the week ended 4 April 2008. The S&P CNX Nifty shed 295 points or 5.96% to 4647 in the week.
The BSE Mid-Cap index outperformed the Sensex, falling 259.94 points or 3.99% to 6,262.85. The BSE Small-Cap index, too, outperformed the Sensex, falling 186.99 points or 2.37% to 7,714.99.
Indian companies are sitting on potential losses on account of the forex derivative transactions they undertook last year. A steep decline in the value of the US dollar against the Japanese Yen and the Swiss Franc has hit Indian corporates which have used these two currencies (Yen and Franc) extensively to swap their rupee denominated debt.
Meanwhile, the change in tax treatment of securities transaction tax (STT) is seen raising cost for arbitrageurs, which in turn may result in fall in arbitrage volumes. STT will now be treated like any other deductible expenditure against business income of the assesses. This is against the earlier practice of 100% rebate for STT paid against the tax liability for the year.
Sustained selling pressure in blue chips spooked the bourses on Monday, 31 March 2008. The 30-share BSE Sensex plunged 726.85 points or 4.44% at 15,644.44. The broader based S&P CNX Nifty plunged 207.50 points or 4.20% at 4,734.50.
On 1 April 2008, after opening on a firm note, market lost ground by early afternoon trade only to recover in mid-afternoon, led by recovery in index heavyweights Reliance Industries (RIL) and ICICI Bank. The 30-share BSE Sensex was down 17.82 points or 0.11% at 15,626.62. The broader based S&P CNX Nifty rose 5.05 points or 0.11% at 4,739.55.
On 2 April 2008, an early surge on the bourses proved short-lived as index heavyweights Reliance Industries, ICICI Bank and L&T, gave up initial gains. The Sensex, which had surged past 16,000 mark in early trade, fell below that level later. The Sensex settled 123.78 points or 0.79% higher at 15,750.40. The broader based S&P CNX Nifty was up 14.65 points or 0.31% at 4,754.20.
On 3 April 2008, the key benchmark indices ended higher as IT stocks rallied on hopes a US recession might not be deep as feared. The Sensex settled 82.15 points or 0.52% higher at 15,832.55. The broader based S&P CNX Nifty rose 17.4 points or 0.37% at 4771.60.
On 4 April 2008, data showing a surge in inflation to a three-year high pulled the market down. The 30-share BSE Sensex slipped 489.43 points or 3.09% at 15,343.12. The broader based S&P CNX Nifty fell 124.6 points or 2.61% at 4647.
India’s largest electrical equipments maker by sales Bharat Heavy Electricals slipped 21.90% to Rs 1634.10 after global investment firm JPMorgan Chase & Company reduced its share price estimate for the company to Rs 2,200 a share from Rs 2,850 earlier.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries fell 1.08% to 2322.20. The company said on Tuesday, 1 April 2008, it had discovered more gas in an exploration block off the east coast. The potential commercial interest of the discovery is being ascertained through more data gathering and analysis, the company said in a statement.
India’s top tractor marker in terms of sales Mahindra & Mahindra (M&M) fell 12.44% to Rs 605.15. M&M said on Tuesday, 1 April 2008, its vehicle sales rose 20% to 24,682 units in March 2008 over March 2007. M&M’s sales rose 30% to 2,31,355 vehicles, in the financial year to March 2008 over the financial year to March 2007.
India’s top truck marker in terms of sales Tata Motors fell 5% to 613.65. Tata Motors said on Tuesday, its vehicle sales 6% to 66,495 units in March 2008 over March 2007. Sales of commercial vehicles rose 17% to 35,993 units and sales of cars and utility vehicles fell 4% to 24,737. Exports fell 9% to 5,765 vehicles
India’s largest private sector power utility company in terms of sales Reliance Energy slumped 12.54% to Rs 1166.35.
India’s largest private sector bank in terms of net profit ICICI Bank fell 8.56% to Rs 763.70.
India's second largest software exporter by sales Infosys Technologies fell 2.85% to Rs 1482.90. India's fourth largest software exporter by sales Satyam Computer Services rose 4.11% to Rs 425.25
Gammon Infrastructure Projects debuted on 3 April 2008 at 7.78% premium at Rs 180 on BSE. On that day, the stock settled at Rs 157.90 on BSE, at a discount of 5.4% over the initial public offer price of Rs 167.
Infrastructure sector output grew 8.7% in February 2008 from a year earlier, faster than a downwardly revised 3.1% growth in January 2008, government data showed on Thursday, 3 April 2008. Output had risen an annual 7.6% in February 2007.
Exports from India rose 35.3% in February 2008 from a year earlier to $14.24 billion, government data showed on Tuesday. Imports rose an annual 30.5% to $18.47 billion. The trade deficit for February 2008 widened to $4.23 billion, compared with $3.62 billion in the same month a year earlier. The trade deficit was $72.47 billion in the first eleven months of the fiscal year to February 2008.
Subscribe to:
Comments (Atom)