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Wednesday, January 18, 2012
Daily News Roundup - Jan 18 2012
Kingfisher operations may be hit as 50 pilots ‘report sick'. (BL)
Essar Oil is facing a sales tax liability of about Rs63bn following a Supreme Court order. (BL)
Reliance Communications has tied up with a clutch of banks for a loan to redeem its outstanding foreign currency convertible bonds worth Rs61.25bn. (BL)
Maruti Suzuki and General Motors (GM) have both announced a price increase on their cars for the third time this fiscal. (BL)
Take your time!
Peace is when time doesn't matter as it passes by. - Maria Schell.
A quiet opening is on the cards as most Asian peers seem to be taking a breather after a two-day bounce. Indian equities are likely to consolidate following Tuesday’s phenomenal rally. The current upswing may sustain for a few more days if FII inflows persist and overseas markets are supportive. Don’t lower your guard as yet; considerable risks prevail for both Indian and overseas markets.
Europe appears to be on the brink of a recession due to the long-running debt crisis. The US is steady at the moment but the jury’s still out on whether it can maintain the current tempo. China may avoid a hard landing despite a marked slowdown.
Precious metals climb up
Gold settles at five-week highs
Precious metal prices ended higher on Tuesday, 17 January 2012 at Comex. Yellow metal prices ended the U.S. day session with solid gains, but down from the session high, and hit a fresh five-week high on Tuesday. A lower U.S. dollar index and higher crude oil prices helped boost bullions on Tuesday. U.S. markets were closed for a holiday on Monday, 16 January 2012 and most assets traded sharply higher in the first business day of the week.
Gold for February delivery ended higher by $24.8 or 1.5%, to end at $1,655.6 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday. It was highest settlement for gold in almost five weeks. Last week, gold gained 0.9%. For the year 2011, gold rose 10%.
Crude prices end considerably higher
Natural gas prices drop to lowest levels in more than nine years
Crude prices ended substantially higher on Tuesday, 17 January 2012 at Nymex. Prices got a good support from the weak dollar. Continuing problems in Iran and Nigeria also boosted prices together with better than expected economic data from Wall Street and China. U.S. markets were closed for a holiday on Monday, 16 January 2012 and most assets traded sharply higher in the first business day of the week.
Some better-than-expected economic news from China and the European Union Tuesday helped to boost stock and commodity markets. The Euro currency made some short-covering gains on the EU data, which in turn put some downside price pressure on the U.S. dollar index.
Market seen halting three-day gains on subdued Asian equities
The market is likely to open slightly lower on Wednesday after logging gains in prior three trading sessions. Asian markets were trading mixed. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 11 points at the opening bell. Jindal Steel & Power's Q3 December 2011 quarterly results due today, 18 January 2012 will be closely watched.
India's largest software services exporter by revenue TCS after market hours on Tuesday, 17 January 2012, on a consolidated basis, reported 21.8% rise in net profit to Rs 2,803 crore on 13.5% rise in revenue to Rs 13,204 crore in Q3 December 2011 over Q2 September 2011.
Tuesday, January 17, 2012
Sensex zooms 277 points on global optimism
Bulls stood strong all throughout the day, with the Indian markets keeping its head high on account of all-round buying and positive global cues.
Major headlines
Maruti Suzuki hikes vehicle prices
RCom to refinance outstanding bonds worth $1.18 bn
Tata Motors rises on strong global sales
Chambal Fertilisers tumbles on net loss in Q3
HCL Tech zooms after good Q2 numbers
Nifty January 2012 futures near spot price
Turnover surges
Nifty January 2012 futures were at 4972.50, near spot closing of 4967.30. Turnover on NSE's futures & options (F&O) segment surged to Rs 122915.63 crore from Rs 86999.25 crore on Monday, 16 January 2012.
Tata Motors January 2012 futures were at 216.70, near spot closing of 216.60.
State Bank of India January 2012 futures were at 1840, near spot closing of 1838.85.
RCom gains on tying up funds for FCCB redemption
Reliance Communications rose 3.12% at Rs 89.15 at 15:04 IST on BSE after the company said it tied up refinancing for outstanding foreign currency convertible bonds worth Rs 6125 crore.
The announcement was made during trading hours today, 17 January 2012.
Meanwhile, the BSE Sensex was up 274.07 points, or 1.69%, to 16,463.43.
On BSE, 32.28 lakh shares were traded in the counter as against an average daily volume of 19.75 lakh shares in the past one quarter.
Market scales 5-1/2-week high on strong Chinese Q4 GDP data
Gains in world stocks triggered by stronger-than-expected GDP growth in China, the world's second biggest economy, in the fourth quarter of 2011, strong Q2 December 2011 results from IT major HCL Technologies and data showing buying of Indian stocks by foreign funds over the past few days, triggered a rally on the domestic bourses today, 17 January 2012. The 50-unit S&P CNX Nifty reached its highest closing level in nearly 6 weeks. The barometer index, BSE Sensex, scaled its highest closing level in more than 5-1/2 weeks. The Sensex jumped 276.69 points or 1.71%, off about 35 points from the day's high and up close to 195 points from the day's low. The market breadth was strong. All the 13 sectoral indices on BSE were in green.
Indian shares advanced for the third day in a row today, 17 January 2012. The Sensex has risen 428.54 points or 2.67% in the last three trading sessions from a recent low of 16,037.51 on 12 January 2012. The barometer index has jumped 1,011.13 points or 6.54% so far in this month. From a 52-week high of 19,811.14 on 6 April 2011, the Sensex has lost 3,345.09 points or 16.88%. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 1,330.19 points or 8.78%.
Daily News Roundup - Jan 17 2012
Reliance Infrastructure Ltd transferred Rs5.2bn into its subsidiary BSES’s account for equity infusion. (BS)
PFC may partner Edelweiss Financial Services for the US$1bn PE fund it plans to establish. (BS)
The government has agreed to infuse fresh capital of Rs7.75bn in Bank of Baroda by the end of March 2012, CMD M D Mallya said. (BS)
SBI has said the Government has approved a capital infusion of Rs60-80bn by March 31. (BS)
Bank of Baroda plans to open about 13 overseas branches in the next 6 months. (BL)
Sensex ekes out slim gains on inflation relief
The Indian equity market coped quite well with Standard & Poor's mass sovereign downgrades in Europe as inflation fell to a two-year low in December, giving elbow room to the RBI to adjust its monetary policy and support economic growth. Trade Secretary said today that India's exports surged by ~26% during April-December 2011 and could hit US$300bn for the full fiscal year.
It was a cautious start to the week for the Indian stocks, as the benchmark indices ended almost unchanged. The equity benchmarks managed to recover smartly from session lows. Earlier, they had got stuck in a tight trading range due to weakness across the Asian markets.
Downgrades ignored, flat start in sight!
What we anticipate seldom occurs; what we least expected generally happens.- Benjamin Disraeli.
The much-dreaded mass downgrades of struggling eurozone members by S&P hardly caused any ripples across world markets. In fact, Moody’s affirmed its "AAA" rating of France. S&P delivered another knock though by cutting the top rating of the eurozone bailout fund, EFSF.
European Central Bank (ECB) President Mario Draghi has downplayed the S&P downgrades but warns that the eurozone situation remains grave. Meanwhile, talks over how writedowns of Greek debt should be handled will resume on Wednesday after a brief pause last week.
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