Bharti Airtel gains after tower unit files for IPO

Bharti Airtel rose 0.53% at Rs 255 at 15:19 IST on BSE after the company said its mobile tower unit, Bharti Infratel, filed a draft prospectus with Securities and Exchange Board of India today, 14 September 2012, for an initial public offering. The announcement was made during trading hours today, 14 September 2012. Meanwhile, the BSE Sensex was up 462.68 points, or 2.57%, to 18,483.84. On BSE, 4.71 lakh shares were traded in the counter as against an average daily volume of 6.35 lakh shares in the past one quarter. The stock hit a high of Rs 259.60 and a low of Rs 253.70 so far during the day. The stock had hit a 52-week high of Rs 412.25 on 16 November 2011. The stock had hit a 52-week low of Rs 238.50 on 30 August 2012. The stock had underperformed the market over the past one month till 13 September 2012, falling 2.42% compared with the Sensex's 2.20% rise. The scrip had also underperformed the market in past one quarter, sliding 17.55% as against Sensex's 6.76% rise. India's largest listed telecom operator by sales has an equity capital of Rs 1898.76 crore. Face value per share is Rs 5. Bharti Airtel announced that its subsidiary, Bharti Infratel, has filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi) today, 14 September 2012, in relation to its initial public offer (IPO) of equity shares. The IPO constitutes a fresh issue of equity shares by Bharti Infratel and an offer for sale portion by Compassvale Investments, GS Strategic Investments, Anadale and Nomura Asia Investment (IB), Bharti Airtel said. In a separate statement to the stock exchange, Bharti Airtel, which owns about 86% of Bharti Infratel, said it had decided not to participate in the IPO. Bharti Infratel will reportedly raise Rs 5000 crore through the IPO. Bharti Infratel owns over 33,000 towers, across 18 states, and 11 telecom circles. Bharti Infratel also has a 42% stake in Indus towers, which was created as a joint venture between Bharti Infratel, Vodafone and Idea to hive off the towers business in 16 telecom circles. Bharti Airtel's consolidated net profit, as per international financial reporting standards, fell 37.3% to Rs 762.20 crore on 14% increase in net sales to Rs 19350.10 crore in Q1 June 2012 over Q1 June 2011. Bharti Airtel is a leading integrated telecommunications company with operations in 20 countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks amongst the top 5 mobile service providers globally in terms of subscribers. In India, the company's product offerings include 2G, 3G and 4G services, fixed line, high speed broadband through DSL, IPTV, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G mobile services. Bharti Airtel had close to 261 million customers across its operations at the end of June 2012.

Sensex at near 14 month closing high

The market gained for the second straight week as diesel price hike by the Indian government to help improve country's deteriorating fiscal position, US Federal Reserve's QE3 program and Germany's Federal Constitutional Court rejecting calls to block the euro rescue fund increased investors' appetite for riskier assets. Recent strong buying of Indian stocks by foreign finds also supported domestic bourses. The market gained in all five trading sessions in the week just gone by. The barometer index, BSE Sensex, scaled nearly 14 month closing high above 18,000. The 50-unit S&P CNX Nifty hit nearly 7 month closing high. The BSE Sensex jumped 714.62 points or 4.02% to 18,464.27, its highest closing level since 26 July 2011. The 50-unit S&P CNX Nifty surged 218.95 points or 4.08% to settle at 5,577.65, its highest closing level since 21 February 2012.

RBI's policy review to set the tone

The Reserve Bank of India's (RBI) mid-quarter review of the monetary policy on Monday, 17 September 2012 will set the tone for the markets in a truncated week ahead. Domestic bourses witnessed recent strong rally as countries around the world took monetary and fiscal initiatives to stimulate growth. The market remains shut on Wednesday, 19 September 2012 on account of Ganesh Chaturthi. The RBI is expected to maintain status quo on short term lending rates in its policy review on 17 September 2012, as per the poll carried out by Capital Market. RBI last cut rates by 0.5 percentage point to 8% from 8.5% in April, its first move to reverse a 20-month rate-tightening cycle. It then held rates steady in June and at its last rate-setting meeting on July 31, saying that a cut would exacerbate inflationary pressures. Inflation in August accelerated to 7.55% much above the central bank's comfort level.

Friday blockbuster on the Street as Govt kicks off long-stalled reforms

Key benchmark indices logged smart gains for eight straight session of trade after the government signaled pushing long pending reforms on the fast track after hiking steeply diesel prices by Rs 5 per liter on Thursday. The BSE Sensex settled at its highest closing since 26 July 2011 and the NSE Nifty settled at its highest closing since 21 February 2012. Markets across the globe surged after the US central bank on Thursday initiated another aggressive stimulus program to stimulate growth in the world's largest economy. The Sensex was up 443.11 points or 2.46%, up 179.52 points from the day's low and off 34.27 points from the day's high. The market breadth was positive.

Daily News Roundup - Sep 13 2012

Jaiprakash Associates has paid US$523.5mn to bondholders to redeem foreign currency convertible bond that was raised in 2007. (ET) The district collector of Angul has ordered an investigation into allegations that Jindal Steel and Power is illegally drawing groundwater for its upcoming power plant in the district. (ET) Jaguar Land Rover, a Tata Motors company, has invested £370mn to upgrade its manufacturing facilities in the United Kingdom. The investment would help the company to increase productivity as it prepares to launch the fourth generation Range Rover across 170 countries. (BL) The flagship index of the MCX Stock Exchange will be known as "SX-40", Vice-Chairman said. The SX-40 will be a free-float-based index of large market-cap and liquid stocks representing most importing sectors. (BL)

Staying within limits

"The only limits are, as always, those of vision." - James Broughton. Call it lack of vision or mission. India needs urgent, decisive and convincing policy action to reverse the slide. Strong FII flows and global risk appetite have pushed Sensex beyond 18,000 and Nifty past 5,400. But, IIP data continues to be bleak. That investments had stagnated was known, but even consumption is starting to ease. The bad news is monetary and fiscal space available to policymakers is limited. Also, both camps seem to be waiting for the other to blink first. The ball is in the Government’s court. It has been unable to take any meaningful measure that could inspire confidence among investors, consumers and India Inc. The wait for reforms has been too long and might even extend further amid the ongoing political feud over ‘coal-gate’.

Flat to negative start likely

The Indian markets may begin today’s trade on a flat to negative note led by mixed global cues. SGX Nifty is trading 2.50 points lower. Events for the day: Ex date for dividend of MMTC, Ruby Mills. Ex date for final dividend of Sun TV Network, NMDC..

Market seen halting recent gains on subdued Asian stocks

The market is likely to take a breather after the recent strong gains. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 5 points at the opening bell. Asian stocks were mostly lower on Thursday ahead of the US Federal Reserve's decision about injecting more stimulus into the world's largest economy. Key benchmark indices gained for the sixth straight trading session on Wednesday as world stocks rose after Germany's highest constitutional court allowed the country to ratify the euro area's permanent bailout fund. Optimism the Indian government will unveil a series of fiscal policy decisions later this week and hopes of further stimulus measures from the world's top central banks underpinned sentiment. The BSE Sensex was up 147.08 points or 0.82% to 18,000.03, its highest closing level since 23 February 2012.

Small and Midcap Picks

Small and Midcap Picks

India Strategy - Sep 2012

 India Strategy - Sep 2012

ONGC - All in One

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India Strategy Reports - Sep 12 2012

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Sensex climbs modestly…Metal shares sink

The Indian stock market indices had a smart session on Tuesday, showing some resilience in the backdrop of weak global equities. Overnight losses in the US and Asian markets dragged the sentiment down at open; however after hitting an intra-day low of 5332, the Nifty index was on a constant uptrend. Market sentiment got a fillip after the Germany's Constitutional Court said that it would not postpone its ruling on the legality of the eurozone's bailout fund, despite a last-minute legal challenge. The smart upswing was led by gains in Realty, IT, Power, Telecom, Banking and Consumer Durables. The Mid-Cap and the Small-Cap indices extended rally, with both gaining 0.3% and 0.6%, respectively.

Mkts end with modest gains ahead of IIP nos

The Indian equities remained highly volatile throughout the day and closed today's trading session in the green zone despite losses all across the globe. The Sensex closed 86 points higher while the Nifty ended 27 points higher in trade today. Major Headlines of the Day: Oil marketing cos’ up over 2% on fuel price hike hopes Tata Motors hits monthly high on JP Morgan report Panacea Biotech locks upper circuit Hero MotoCorp drops on production cut woes Sesa Goa, Sterlite slips over 5% as Goa govt shuts mining activities

Sensex scales 3 week high

Key benchmark indices gained for the fifth straight trading session as data showing that foreign funds remained net buyers of Indian stocks on Monday, 10 September 2012 boosted sentiment. The Sensex was up 86.17 points or 0.49%, up close to 175 points from the day's low and off about 15 points from the day's high. The barometer index, BSE Sensex scaled its highest closing level in 3 weeks. The 50-unit S&P CNX Nifty hit its highest closing level in nearly 3 weeks. The market breadth was positive. From a recent low of 17,313.34 on 5 September 2012, the Sensex has gained 539.61 points or 3.11% in five trading sessions. The Sensex has gained 423.39 points or 2.42% in this month so far (till 11 September 2012). The Sensex has jumped 2,398.03 points or 15.51% in calendar 2012 so far (till 11 September 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 2717.09 points or 17.95%. From a 52-week high of 18,523.78 on 22 February 2012, the Sensex has lost 670.83 points or 3.62%.