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Tuesday, January 08, 2013
Market may open flat to slightly higher
Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 6 points at the opening bell. United Spirits will be in focus as the mandatory open offer by Diageo plc to acquire up to 3.77 crore equity shares of United Spirits (USL) constituting 26% the enlarged share capital of USL at Rs 1,440 per share has been delayed. The open offer has been delayed pending final observations from stock market regulator Securities & Exchange Board of India (Sebi). The open offer was originally slated to commence on 7 January 2013. The company is yet to announce the revised schedule of the open offer. The open offer is a part of the deal inked by Diageo plc and the UB group in November 2012 whereby Diageo plc will acquire 53.4% of the enlarged USL share capital at an aggregate cost of Rs 11166.50 crore (approximately £1,285 million) in two stages. The acquisition cost represents a 20x multiple of USL's EBITDA for the year ended 31 March 2012. Bank stocks will be in focus after the representatives of banking and financial institutions in a pre-budget meeting with Finance Minister Mr. P.Chidambaram on Monday, 7 January 2013, sought extension of Agriculture Interest Subvention Scheme to Self Help Groups and raising the threshold of interest amount for the purpose of TDS on interest income of depositors from Rs 10,000 per annum to Rs 25,000 on fixed term deposits with banks and allowing banks to issue tax free infrastructure bonds. State-run Bank of Maharashtra after trading hours on Monday, 7 January 2013, said that its board of directors will meet on 10 January 2013 to consider a proposal to raise additional equity share capital up to Rs 200 crore (face value) as follow-on public offer (FPO) and/or on right issue and/or by way of placement of equity shares through qualified institutional placement (QIP) in FY 2013-14. BPCL will be in focus after Prime Minister Dr. Manmohan Singh on Monday, 7 January 2013, laid the foundation stone for BPCL's refinery expansion project at Kochi in Kerala. On the completion of this project, the refining capacity at BPCL's Kochi refinery will increase from 9.5 to 15.5 million metric ton per annum. The project also involves the modernization of BPCL's Kochi refinery and will make it capable of producing auto-fuels compliant with Bharat Stage 4 and 5 specifications. PSU OMCs will in be in focus after Prime Minister Dr. Manmohan Singh on Monday, 7 January 2013, said the Indian oil industry has undertaken the massive task of upgrading the quality of auto fuels in the country with an investment of over Rs 30000 crore from internally generated resources. Bharat Stage 4 petroleum and diesel have already been introduced in 26 cities, he said. In recognition of the need for progressively moving towards better and better quality fuel, this exercise will be extended in a phased manner to cover another 37 cities by 2015, Dr. Singh said. Dr. Singh reiterated his recent statement that energy remains underpriced in India. "To meet the target of rapid, inclusive and sustainable development, we must undertake a phased rationalization of energy prices to bring them in line with global prices. The Central and the state government must work together to create awareness in the public on the need for curbing energy subsidies," Dr. Singh said. Shares of oil and gas exploration and production firms will be in focus after Prime Minister Dr. Manmohan Singh on Monday, 7 January 2013, said that the Government of India remains committed to encouraging companies to undertake domestic exploration for oil and gas. He also said that state-run oil companies are looking at opportunities abroad. GMR Infrastructure said after trading hours on Monday, 7 January 2013, that GMR Kishangarh Udaipur Ahmedabad Expressways, a subsidiary of the company, has terminated the concession agreement entered into with National Highways Authority of India (NHAI) for six laning of 555 Km Kishangarh-Udaipur-Ahmedabad highway. TTK Prestige said after trading hours on Monday, 7 January 2013, that the company has received Japanese patent for its microwave pressure cooker. Bhushan Steel said after market hours on Monday, 7 January 2013, it has fixed 16 January 2013 record date for rights issue in the ratio of one equity share for every 15 equity shares held. The right issue has been priced at Rs 335 per share. Shares of Bhushan Steel rose 2.13% to settle at Rs 492.10 on BSE on Monday, 7 January 2013, ahead of the announcement. Shareholders will have to pay Rs 167.50 per share on application and an equal amount on first and final call, Bhushan Steel said. Britannia Industries after trading hours on Monday, 7 January 2013, said that Mr. Raju Thomas, who is currently the Chief Financial Officer of the company (CFO), will be relinquishing his office as CFO effective February 1, 2013 and Mr. Vinod Menon, currently the Vice President for Strategy and New Business Development in Britannia, will take over charge as the new CFO as from that date. Colgate Palmolive (India) announced after market hours on Monday, 7 January 2013, that some of the workmen at its Goa toothpaste manufacturing factory have resorted to unauthorised temporary stoppage of work, effective January 6, 2013. They are primarily protesting against the suspension of a workman, who was suspended on disciplinary grounds. The company is following the due process and expects to resolve the issue shortly. The disruption of work at the Goa factory is temporary and will have minimal impact on company business, Colgate Palmolive (India) said in a statement. Key benchmark indices snapped four-day winning streak and settled at their lowest closing level in almost a week on Monday, 7 January 2013, as world stocks dropped. The BSE Sensex lost 92.66 points or 0.47% to settle at 19,691.42 on that day, its lowest closing level since 1 January 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 963.05 crore on Monday, 7 January 2013, as per provisional data from the stock exchanges. Indian companies will soon start unveiling Q3 December 2012 results. Investors and analysts will closely watch the management commentary that would accompany the result which could cause revision in their future earnings forecast of the company for the current year and or next year. Infosys announces Q3 results on Friday, 11 January 2013. TCS announces Q3 results on 14 January 2013. Axis Bank announces Q3 results on 15 January 2013. Bajaj Auto unveils Q3 results on 16 January 2013. Hero MotoCorp announces Q3 results on 17 January 2013. HCL Technologies announces its Q2 December 2012 results on the same day. HDFC Bank and ITC unveil Q3 results on 18 January 2013. HDFC and Asian Paints unveil Q3 results on 21 January 2013. Maruti Suzuki India unveils Q3 results on 25 January 2013. ICICI Bank announces Q3 results on 31 January 2013. IDFC announces Q3 results on 1 February 2013. Asian stocks drifted lower Tuesday as caution in the wake of strong recent gains and ahead of the US earnings season led investors to lock in profits. Key benchmark indices in China, Hong Kong, Japan, Singapore, Taiwan and South Korea fell by between 0.17% to 0.83%. Indonesia's Jakarta Composite rose 0.37%. US stocks edged lower on Monday, 7 January 2013, before the start of the fourth-quarter earnings season this week, with investors also watching political developments to resolve the debt ceiling issue. US aluminum major Alcoa Inc. is set to kick off the traditional opening of US earnings reporting season today, 8 January 2013. On Capitol Hill, Republicans are linking raising the US debt ceiling to reduced spending on entitlement programs including Medicare. Congress has to move as soon as mid-February to keep the country out of default. The Federal Open Market Committee (FOMC) holds a two-day meeting on interest rates in the United States on 29 and 30 January 2013.
Monday, January 07, 2013
Crude climbs up on supply decline
Prices gain 2.5% on a weekly basis Crude Oil futures finished higher at Nymex on Friday, 04 January 2013. Prices rose finding support from a hefty drop in last week's U.S. crude supplies, but also pressured by a stronger dollar, as traders weighed concern over a potential end to the Federal Reserve's monetary stimulus this year. Light and sweet crude-oil futures for delivery in February tacked on 17 cents, or 0.2%, to settle at $93.09 a barrel on the New York Mercantile Exchange. Prices, which traded between $91.52 and $93.15, climbed 2.5% for the holiday-shortened week.
Daily News Roundup - Jan 7 2013
The government has allowed Cairn India to further explore its prolific Rajasthan oilfields, which can raise the block’s output to 300,000 barrels per day from current 175,000 bpd, oil minister said. (ET) MAS GMR Aerospace Engineering is in talks with SpiceJet for offering aircraft maintenance repair and overhaul services for the airline’s newly acquired Bombardier Q400 fleet, a senior official of the GMR Group said. (ET) Dr Reddy’s Laboratories, which is in the process of acquiring Netherlands-based specialty pharmaceutical company OctoPlus NV for about €27.4m, has so far managed to get nearly 80% shares in its favour. (ET)
Market to play it cool
"It doesn't matter if the water is cold or warm if you're going to have to wade through it anyway" - Teilhard de Chardin The weather of course is as cool as one may have experienced. The market has nothing really to warm up to immediately except the results which will start pouring in later this week. The outlook is a flat opening with a narrow range movement anticipated. Asian stocks are moving in and out of positive territory. The Nikkei is slightly lower. Hang Seng is marginally higher. Samsung Electronics Co. and LG Display Co. fell in Seoul after being fined by China for price fixing. The US market had closed in the green on Friday.
Flat to positive start likely
The Indian indices expect to open on a flat to positive note led by mixed Asian cues. SGX Nifty is also trading 8.50 points higher. Stock in news: Dr Reddy's acquires 80% shares in OctoPlus. Goldman, 5 others shortlisted for NTPC share sale. Two dead in IOC terminal fire at Hazira, Gujarat. Indian Indices: On the first trading day of the week, the Indian markets may open on a flat to positive note on account of mixed Asian cues. SGX Nifty is also trading 8.50 points higher. On Friday (January 04, 2013), the Sensex settled at 19784, up by 19 points while the Nifty closed at 6016, rising by 6 points Global Indices: Asian stock markets outside Japan edged up on Monday (January 7, 2013), supported by data showing that the US economy continued on a path of slow but steady recovery that had pushed Wall Street stocks to a five-year high. European shares set a 22-month high on Friday (January 04, 2013), buoyed by supportive data and led by rig contractor Transocean, which agreed to settle US government charges over BP's Gulf of Mexico oil spill. US stocks traded higher on Friday after the US Bureau of Labour Statistics said that the unemployment rate in the United States was unchanged in December at 7.8%. Daily trend of FII/MF investment in equities: The FIIs have been the net buyers Indian stocks to the tune of Rs1439.50 crore on January 03, 2013. The domestic investors sold Indian shares worth a net of Rs306.50 crore on January 03, 2013. The data is as per the SEBI website. Commodity Cues: Crude oil ended modestly higher on Friday ahead of a major pipeline expansion which analysts said will lead to still-higher prices for the benchmark contract.
Market may open slightly higher
The market may open slightly higher, tracking mostly higher Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 11 points at the opening bell. Punjab National Bank after trading hours on Friday, 4 January 2013, said that the bank has received all regulatory approvals including CCI for acquiring 30% stake in Metlife India Insurance Co. On closing of the transaction, the company will be rebranded as PNB Metlife India, PNB said in a statement. ING Vysya Bank after trading hours Friday, 4 January 2013, said that the Reserve Bank of India has approved increase in investment limit by FIIs in equity shares of ING Vysya Bank under portfolio investment scheme (PIS) to 30% from 24%.
Wednesday, January 02, 2013
Strong buying fuels Indian indices
Indian equity markets traded in the positive throughout the trading session today albeit within a range. The indices began the day's proceedings on a cautious note. But buying activity across index heavyweights intensified thereafter pushing the indices higher. This momentum was sustained in the final trading hour as well and the indices closed well above the dotted line. While the Sensex today closed higher by 133 points, the NSE- Nifty today closed higher by 42 points. Both the BSE Mid Cap and the BSE Small Cap also did well and notched gains of 1% each. Gains were largely seen in oil and gas stocks and banking stocks. As regards global markets, Asian indices closed mixed today while most European indices have opened in the green. The rupee was trading at Rs 54.40 to the dollar at the time of writing. Pharma stocks closed mixed today. While Aurobindo Pharma, Ranbaxy and Cipla found favour, Glenmark and Cadila Healthcare closed in the red. As per a leading business daily, Aurobindo Pharma has received final approval from the US Food & Drug Administration (US FDA) to manufacture and market 'Rizatriptan Benzoate' Tablets in the strengths of 5 mg and 10 mg. This drug is the generic equivalent of Merck and Co's 'Maxalt' Tablets and is indicated for the acute treatment of migraine. The annual sale of the product was pegged at US$ 300 m for the twelve months ending March 2012 according to IMS. This product has been approved out of Unit VII (SEZ) formulations facility in Hyderabad. It must be noted that sales from the US formulations business grew by a robust 50% YoY during 2QFY13 led by many notable product approvals and launches during the quarter. The company now has a total of 171 ANDA approvals from the USFDA. With respect to Unit 6, it been inspected by the FDA with a few observations to which Aurobindo has responded and awaiting for the US regulator to get back. Hence, as of now an element of uncertainty exists as to when this issue will get fully resolved. Having said that, the US pipeline is robust and will be the key growth driver going forward. Auto stocks also closed mixed today. While the key gainers were Bajaj Auto and Hero Motocorp, Mahindra & Mahindra (M&M) and TVS Motors closed into the red. As per a leading business daily, Hero Motocorp has recorded a marginal increase of 0.2% in sales volumes for the month of December 2012. The company attributed this to the fact that since December is the last month of the calendar year, it usually witnesses sluggish growth in volumes as customers tend to postpone their purchases to the new year. Having said that, the period April-November 2012 too has not seen the auto industry perform too well. Two wheelers during this period witnessed a tepid growth of 4% and Hero Motocorp being the market leader has also been impacted. Infact, during the July-September 2012 quarter, the company reported an 11% fall in sales on the back of a 14% YoY drop in volumes. Meanwhile, the company intends to focus on marketing and customer engagement plans to fuel volumes for the remaining months of the fiscal.
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