Daily News Roundup - Aug 7 2012

Tata Teleservices has slipped on performance parameters it promised to Japan’s NTT DoCoMo, giving the foreign investor an option to either exit the business or increase its stake in the JV. (ET) Aurobindo Pharma and Glenmark said they have received approval from the US health regulator to manufacture and market generic montelukast sodium tablets used for treating asthma and allergies. (ET) Ranbaxy Laboratories may have forgone the launch of its generic version of blockbuster sleep disorder drug Provigil during a lucrative six-month marketing exclusivity period as part of its regulatory settlement with US authorities, say analysts who estimate that this might have cost the drugmaker US$50-100mn in revenues. (ET)

Sensex cracks double ton…RIL spurts 5%

Indian stocks kicked off a new trading week with solid gains, with the NSE Nifty closing in on the 5,300 milestone. The BSE Sensex rose by over 200 points. The Nifty and the Sensex both advanced by ~1% each. However, the broader indices could not quite capitalise on the good early start and retreated from the day’s highs. The market breadth was still positive. Oil & Gas, Auto, Banking, Capital Goods and Realty sector indices paced the rally today while sectors such as IT and FMCG were the biggest laggards.

Finding remedies

Science may have found a cure for most evils, but it has found no remedy for the worst of them all-the apathy of human beings. - Helen Keller. Finance Minister P. Chidambaram has promised corrective and remedial measures to revive confidence in the sputtering Indian economy. High on the FM’s agenda are fiscal discipline and clarity on controversial tax proposals. Does that mean hike in ‘regulated’ fuel prices? Does it mean dilution of GAAR and amicable settlement with Vodafone? There is a wide difference between rhetoric and action. Therefore, one will have to wait and see what FM & Co. can deliver in the coming weeks. Bear in mind that some of the Centre’s proposals have met with stiff political resistance.

Market may extend gains on firm Asian stocks

The market may extend Monday's (6 August 2012) gains on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 6 points at the opening bell. Asian stocks advanced Tuesday, extending steep gains made in the previous session, amid fresh hope for European action to support the region's weaker economies. Among corporate news, DLF's consolidated net profit declined 18.29% to Rs 292.79 crore on 6.96% decline in total income to Rs 2328.85 crore in Q1 June 2012 over Q1 June 2011. GMR Infrastructure said that at the board meeting of the company scheduled to be held on August 09, 2012, the board will also consider raising of funds through issue of equity shares or convertible debentures or Foreign Currency Convertible Bonds or any other securities.

Market may continue to rise on global support

The Indian markets are set to begin trade on a positive note led by positive global cues. SGX Nifty is trading 8.50 points higher. Events for the day: Results: Aurobindo Pharma, NHPC, Tata Chemicals, United Breweries. Headlines for the day: RIL agrees to financial audit by CAG. Pipavav bags two international orders worth Rs1,192 crore. Construction industry outlook stable in H2, says Fitch. Court allows Telenor JV to seek interest for assets.

Market may continue to rise on global support

The Indian markets are set to begin trade on a positive note led by positive global cues. SGX Nifty is trading 8.50 points higher. Events for the day: Results: Aurobindo Pharma, NHPC, Tata Chemicals, United Breweries. Headlines for the day: RIL agrees to financial audit by CAG. Pipavav bags two international orders worth Rs1,192 crore. Construction industry outlook stable in H2, says Fitch. Court allows Telenor JV to seek interest for assets.

RIL gains in value and volume

Key benchmark indices surged to scale their highest closing level in nearly four weeks, with investor sentiment boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 3 August 2012. Comments from Union Finance Minister P Chidambaram that he intends to shortly unveil a path of fiscal consolidation aided gains on the domestic bourses. Strong US economic data released on Friday, 3 August 2012, and expectations that the European Central Bank will step in to buy euro-zone government bonds in time to address the long-running euro-zone debt crisis, also aided gains on the domestic bourses. US is the world's biggest economy. The barometer index, BSE Sensex, jumped 215.03 points or 1.25%, off close to 40 points from the day's high and up over 100 points from the day's low. The market breadth was positive.

ValueGuide - Aug 2012 - Monsoon and many other reports...

 ValueGuide - Aug 2012 - Monsoon and many other reports...

SGX Nifty Live Update -Aug 6 2012

5289.50 +53.00    (+1.01%)

Copper prices jump the most in three weeks

Positive employment report take prices higher Copper prices jumped by the most in three weeks at Comex on Friday, 03 August 2012 after data showing U.S. employers hired more workers than expected last month deflated the dollar and boosted prices of the red metal. But an increase in the jobless rate to 8.3% reminded investors of the still-fragile state of the world's largest economy and kept prospects of further monetary stimulus from the Federal Reserve on the table. At London Metal Exchange (LME), three-month copper rose $115, or 1.6% to end at $7,445 a tonne on Friday.

Crude takes a big jump following positive economic data

Prices settle at the highest level in two weeks Crude oil got a major boost on Friday, 03 August 2012 at Nymex gaining nearly 5% after the better than expected employment data, positive performance in Europe while also benefitting from the dollar's decline. Crude-oil futures rallied nearly 5% Friday, spurred by optimism following a positive U.S. jobs report and as Wall Street traded sharply higher and the dollar lost some ground. Light and sweet crude for September delivery rose $4.27, or 4.9%, to settle at $91.40 a barrel on the New York Mercantile Exchange on Friday. The settlement was the highest in two weeks.

Bullions shine due to positive economic data

Lower dollar adds further glaze Bullion metal prices ended higher at Comex on Friday, 03 August 2012 snapping a three-day losing streak after U.S. employment data showed a rebound in hiring last month and as the dollar traded weaker. Gold for December delivery advanced $18.60, or 1.2%, to settle at $1,609.30 an ounce on the Comex division of the New York Mercantile Exchange. The metal declined 0.5% on the week, however.

Market may surge on firm Asian stocks

The market may surge in early trade on strong Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 44 points at the opening bell. Asian stocks rose for the first time in four days on Monday after creditors said Greece is making progress on meeting bailout terms and U.S. payrolls climbed more than forecast. Among corporate news, DLF and Steel Authority of India unveil Q1 results today, 6 August 2012. Metal stocks will be in focus as LMEX, a gauge of six metals traded on the London Metal Exchange gained 1.64% on Friday, 3 August 2012. PSU OMCs, oil exploration firms and airline stocks will be in focus as US crude-oil futures for September delivery vaulted almost 5% to close above $91 a barrel on Friday after better-than-expected U.S. data fueled hopes that economic strengthening would lead to increased oil demand.

Weekly Stock Picks - Aug 5 2012

Buy Hind Oil Exp Buy Ranbaxy Buy TCS BUY NTPC Buy Wipro

Weekly Newsletter - Aug 5 2012

The indices did manage to eke out around 2% gains after being on a weekly loss for a couple of weeks. Dark clouds would actually bring joy as the focus of the nation is on the deficient monsoon. If the rain gods fail to shower their blessings adequately, India could see its growth in the current fiscal falling to 6% according to the Planning Commission. Any positive signals from the Euro zone can provide comfort and support to the markets which remain on tenterhooks. Corporate results will continue to flow in bringing in the necessary action in those particular stocks. As far as key data points are concerned the IIP numbers would be keen awaited on Friday. Globally too various data points will provide some cues on the current state of affairs. The month of August is not really known for much gains or pains. At best we could remain in a tight range for sometime. In short, the coming week will continue to swing more to the global cues than any domestic affair.