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Friday, November 02, 2012
Daily News Roundup - Nov 2 2012
L&T Construction has won new orders valued at over Rs10.6bn across various business segments in October. (BL) SAIL expects to expand its production capacity to 18mn tons by the end of current financial year, as it plans to commission two new blast furnaces. (BL) Oil India Ltd has started drilling operations in Gabon, South Africa for hydrocarbon exploration. (BL)
Broadbased recovery…Nifty above 5600 for 2nd day
Finally, the Indian stock market has broken away from the one day up, one day down sequence. The benchmarks have eventually managed to extend its gains for the second consecutive trading session. Markets ended almost near day’s high as participants cheered the PMI data. The HSBC India Manufacturing Purchasing Managers' Index (PMI) a measure of factory production stood at 52.9 in October slightly up from September, when it was 52.8. The upswing was led by a broad based recovery in sectors across the board. The Consumer Durables index, up 5.5% followed by BSE Auto index up 2.2%, BSE Realty index up 1.8%, BSE Power index up 1% and BSE Pharma index up 0.9%.
Markets coming alive
Don’t ask what the world needs. Ask what makes you come alive and go do it. Because what the world needs is more people who have come alive – Howard Thurman. The world seems to be on a gaining spree as far as equity markets are concerned. The Indian indices will continue their winning ways with added momentum today powered by the strong global cues. The HSBC India Manufacturing Purchasing Managers' Index (PMI) stood at 52.9 in October slightly up from September, when it was 52.8. Consumer confidence in US climbed last month to a more than four-year high.
Markets give positive start on strong global cues
The Indian markets ring the opening bell in the green terrain as the global peers look supportive. The Sensex and Nifty are trading with good gains. Buying is visible across the board. Among the 13 sectoral indices, the BSE realty is up 1.5%. Metal, capital goods, bankex, power, auto, FMCG and PSU indices are also up around 1% each. The broader markets are in-line with the benchmark indices. The BSE mid-cap and small-cap indices are up 0.7% each. The overall breadth stands positive. From the earnings front, India's third-largest IT services company, Wipro announces its consolidated net profit of Rs1,610 crore for the quarter ended 30th September 2012. At 10.00 am, the Sensex was trading at 18708.85, 148 points higher and the Nifty was trading at 5689, up by 44 points.
Market surges on upbeat US economic data
Key benchmark indices jumped in early trade on upbeat US economic data released overnight. United States is the world's biggest economy. The market breadth was strong. All the 13 sectoral indices on BSE were in green. The barometer index, BSE Sensex, was up 141.78 points or 0.76%, off about 50 points from the day's high and up close to 10 points from the day's low. Index heavyweight, Reliance Industries (RIL) rose after the Ministry of Petroleum & Natural Gas after trading hours on Thursday, 1 November 2012, issued detailed clarification regarding KG-DWN-98/3 block allotted to RIL led consortium. Another index heavyweight and cigarette maker ITC also edged higher in early trade. Godrej Consumer Products rose after company said it has completed the acquisition of 51% stake in Darling Group in Kenya. IT major Wipro gained on good Q2 results. India's largest commercial vehicle maker by sales Tata Motors rose after reporting October sales after trading hours on Thursday. Realty major DLF rose after company said it has received the entire amount from Lodha Developers on sale of a land parcel in Mumbai.
Wednesday, October 31, 2012
RBI effect: Sensex, Nifty break down
The Indian equity market finally broke down from its trading range. Market had opened on a flat note and remained in a tight range in the earlier part of the day. Post the RBI policy announcement the indices fell sharply. The RBI reduced the cash reserve ratio (CRR) of scheduled banks by 25 basis points from 4.5% to 4.25% of their net demand and time liabilities (NDTL) effective the fortnight beginning November 3, 2012. As result of this reduction in the CRR, around Rs175 bn of primary liquidity will be injected into the banking system. This was however, more on expected lines and the street would have been happy to see a rate cut. Technically, Nifty violated the neckline of Head and shoulder top after breach below 5630 with renewed selling pressure from financial. Nifty has currently retraced 38.2% of the recent up move from 5223 till 5801 which corresponds to 5580 and move below same could drag Nifty well below 5500 in the coming days. The interest rate sensitive stocks were under pressure. The BSE Banking and the Realty index were the top losers shedding ~2.2% each. Among the other major losers were BSE Consumer Durables index down 2.2% and BSE Capital Goods index fell 2%.
Indices set to open flat
Always act like you're wearing an invisible crown. ~Author Unknown The RBI seems to have a mind of its own when it comes to its policy measures. The Finance minister isn’t impressed and has hinted that Government intends to face the challenge of reviving growth on its own. The RBI cut CRR by 25 basis points. Its decision to keep the key interest rate unchanged led to the indices witnessing a drop not seen for the last three weeks. The Bankex shed over 2%. With Tuesday’s fall, the Nifty has broken out of its trading range we have been mentioning for a while violating the key support of 5630 levels. That level may well turn into a new resistance for the time being.
Market may open flat
Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a flat opening on the domestic bourses. Power Grid Corporation of India announces Q2 September 2012 results today, 31 October 2012. PSU OMCs may edge lower on reports that new Petroleum Minister Veerappa Moily is reviewing the cap on subsidized LPG cylinders ahead of assembly polls in Himachal Pradesh and Gujarat. In a bid to rein in its ballooning oil subsidy burden, the Centre last month fixed a cap on supply of subsidised LPG to six cylinders per household in a year. Moily on Monday, 29 October 2012, took charge as the new Minister of Petroleum and Natural Gas following a major reshuffle of the cabinet announced by Prime Minister Dr. Manmohan Singh on Sunday, 28 October 2012. Assembly polls in Himachal Pradesh are scheduled on Sunday, 4 November 2012. Assembly polls in Gujarat will take place in two phases on 13 and 17 December 2012
Tuesday, October 30, 2012
Rakesh Jhunjhunwala Picks for 2013
See what our readers are picking up and if any of them are Rakesh Jhunjhunwala Stocks for 2013
http://bit.ly/2012IndiaStockPicks
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