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Saturday, March 03, 2012
Market slips for 2nd straight week
The market fell for the second consecutive week as data showing slowdown in GDP growth in Q3 December 2011 spooked investors. Macroeconomic worries arising from high oil prices also weighed on the domestic bourses.
The Sensex fell 286.77 points or 1.60% to 17,636.80 in the week ended 2 March 2012. The S&P CNX Nifty fell 69.95 points or 1.29% to 5,359.35.
The BSE Mid-Cap index rose 0.72%. The BSE Small-Cap index fell 0.43%. Both these indices outperformed the Sensex.
Bank stocks edge higher in volatile market
Key benchmark indices eked out small gains in a volatile trading session. The barometer index, BSE Sensex, rose 52.83 points or 0.3%, off close to 95 points from the day's high and up about 130 points from the day's low. Index heavyweight Reliance Industries (RIL) edged higher in volatile trade. Pharma major Sun Pharmaceutical Industries hit record high. Bank stocks rose on bargain hunting after recent slide.
The barometer index has lost 115.88 points or 0.65% in March 2012 so far (till 2 March 2012). The Sensex had jumped 559.13 points or 3.25% in February 2012. The index has surged 2,181.88 points or 14.11% in calendar 2012 so far (till 2 March 2012) on the back of heavy inflow from foreign funds. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 2,500.94 points or 16.52%. From a 52-week high of 19,811.14 on 6 April 2011, the Sensex has lost 2,174.34 points or 10.97%.
Volatility may prevail on bourses
The market is expected to remain volatile next week due to uncertainties over elections results in five states due on Tuesday, 6 March 2012. The stock market remains closed on Thursday, 8 March 2012, on account of Holi.
The Bombay Stock Exchange (BSE) and the National Stock Exchange are holding a special 1-1/2 hour trading session on Saturday, 3 March 2012, as BSE is testing its Disaster Recover Site (DR). Trading will begin at 11:15 IST and conclude at 12:45 IST on that day.
Polling for assembly elections in five states concludes on Saturday, 3 March 2012. The counting of the votes takes place on 6 March 2012, with the results due on the same day.
Friday, March 02, 2012
Grey Market Premiums - March 2 2012
Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 2 Lac Application) |
Hudco | 1000 | 2 to 2.50 | -- |
IRFC | 1000 | 9 to 9.50 | -- |
MCX (IPO) | 1032 (Higher Price Band) | 360 to 365 | Kostak Price on Last Day (24-2-2012) Rs. 3000 to 3100 |
Daily News Roundup - March 2 2012
Oil and Natural Gas Corporation’s share auction fell marginally short of full subscription. Against 427.77 million shares on offer, bids were received for 420 million, or 98.3%. However, the government raised ~Rs127.66bn, suggesting some bids came above the floor price of ~290 a share. (BS)
Reliance Industries Limited, which plans to mark its re-entry into the telecom sector by launching its 4G services this year, is known to be evaluating various options of offering voice with the service. (BS)
Sterlite Industries has offered to pay Rs160bn to buy government stakes in Hindustan Zinc and Bharat Aluminium Company. (ET)
Saving the blushes!
Success is the ability to go from one failure to another with no loss of enthusiasm.- Sir Winston Churchill.
The Government’s already battered image suffered another knock in the form of a disappointing ONGC auction. A last-minute rescue by LIC has reportedly saved the Government the blushes. Still, the lukewarm response will irk the Centre. It may also hit sentiment for upcoming auctions unless the Government gets its act together. ONGC stock was down and might suffer more damage. The approval of share buyback for PSUs may act as a blessing in disguise. But, one has to see how the market views that in light of the ONGC fiasco.
Leaving aside the bad news on disinvestment, the start is likely to be positive. Most Asian indices are up following overnight gains on Wall Street. US shares gained on couple of encouraging economic reports. Oil spiked on reports of a pipeline explosion but the same was later denied by Saudi Arabia.
Good gains for crude
Prices rise riding on back of steady dollar, mixed data and supply concerns
Crude prices ended substantially higher on Thursday, 01 March 2012 at Nymex. Prices rose following mixed economic data at Wall Street, steady dollar and after a report of a pipeline blast in Saudi Arabia.
Light and sweet crude for April delivery rose $1.77 (1.7%) to $108.84 a barrel on the New York Mercantile Exchange on Thursday. Prices gained 8.7% during February 2012.
In the currency market on Thursday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies stayed steady and rose marginally higher earlier during the day. Yesterday, the European Central Bank disclosed that it recently issued more than $700 billion in three-year loans to the continent's banks.
Market may open higher on firm Asian stocks
The market may open higher on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 25.50 points at the opening bell.
Investors bid for 42.04 crore shares of ONGC of a total of 42.77 crore shares on offer in an auction of 5% government stake-sale in the firm through the stock exchanges mechanism on 1 March 2012 as per data on National Stock Exchange. The Government of India held 74.14% stake in ONGC as on 31 December 2011.
India's largest bike maker by sales Hero MotoCorp reported a 10.89% rise in its total sales at 5,23,465 units in February 2012 over February 2011.
Precious metals end nearly at daily highs
Prices gain back part of previous session's losses
Bullion metal prices ended higher on Thursday, 01 March 2012 at Comex. Prices ended the U.S. day session near their daily highs on Thursday following the big downdraft on Wednesday. Prices ran higher with higher equities and higher oil prices. The key “outside markets” were mixed for the precious metals markets on Thursday, as the U.S. dollar index was slightly higher and crude oil prices were also slightly higher.
Gold for April delivery ended higher by $10.9 or 0.6%, to end at $1,722.2 an ounce on the Comex division of the New York Mercantile Exchange on Thursday. Prices had wavered between small gains and losses earlier, trading as low as $1,695.10 an ounce and as high as $1,726.40 an ounce. Year-to-date, gold has gained 9.9%, while prices shed 1.7% on the month of February 2012. Gold ended the month of January higher by 11%. For the year 2011, gold rose 10%.
Better trades for the day - March 2 2012
Events for the day:
Ex-date for interim dividend of CHL
Stock in news:
High floor price may have dashed FII interest in Oil & Natural Gas Corporation ( ONGC): experts.
Sesa Goa completes acquisition of Goa Energy.
Centre seeks more time for 2G spectrum auction.
Oriental Bank of Commerce sees 19% loan growth.
MTNL says not shutting down CDMA business.
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