Red sky at night, sailors delight; red sky at morning, sailors warning
After bouncing back in style and creating a record turnover on Thursday, the bulls are set to drown at opening thanks to the global weakness. With a lot of money waiting on the sidelines, expect a cushion to be provided later in the day or early next week. The Cabinet Committee on Economic Affairs has given its nod for removing the prohibition on investment of surplus funds of navratnas and miniratnas in equity mutual funds. FII investments in Indian equities this calendar year has reached over $10bn as against $8bn invested in calendar 2006. But all these and any other positives will be ignored at start.
Wall Street came crumbling down after long. US stocks fell on signs of further weakness in the housing sector. The Dow Jones industrial average shed 312 points to close at 13,473. The Nasdaq dropped 49 points to end at 2599. Indian ADRs too were deep in the red. Patni Computers fell 5.5% to $23.90. Infosys, Satyam, Wipro, ICICI Bank, HDFC Bank, MTNL, VSNL and Tata Motors lost in a range of 2-5% each.
Asian stocks recorded one of its worst fall in four months on speculation that a worsening U.S. housing slump will slow growth in the world's biggest economy and prompt investors to shun riskier assets.
Inflation numbers will also be closely watched as RBI will announce its outlook and next course of action. Among the results being announced today include - Adani Ent, Avaya Global, BPCL, Bata, CEAT, IOB, J&K Bank, Madras Cements, MTNL, Moser Baer, Nagarjuna Fertilizers, NIIT Tech, Peninsula Land, STAR, Titan and Tata Chemicals.
French car maker Renault today said it was in talks with Bajaj Auto, the two-wheeler maker, for producing a car worth around Rs 1.20 lakh.
Nestle India today entered the probiotic milk market by launching its new low-fat product, Nestle Nesvita Dahi. Yakult Danone India, an equal joint venture between Yakult Honsha of
Japan and Group Danone of France, and Mother Dairy too announced their entry into the probiotic market with a probiotic health drink and yoghurt.
It was yet another historic session, however not for touching new peaks but for record turnover in F&O segment and market. A late bounce enabled the bulls to recover yesterday’s losses as smooth rollover aided the key indices to record smart gains. Heavyweights like Reliance Industries, Infosys, ONGC and TCS led the rally, even the Mid-Cap and the Small Cap stocks joined the upsurge. Finally, BSE 30-share Sensex added 76 points to close at 15776. NSE-50 Nifty gained 29 points to close at 4618.
NSE F&O and market wide turnover hit record high for third straight trading session. NSE F&O turnover hit a new high of Rs79,996cr and total market turnover hit 1.01 Lakh crore for the first time ever.
Maruti surged by over 3% to Rs835 after the company’s result beat market estimates it declared its Q1 net profit at Rs4.99bn ( up 34%) and sales at Rs3914bn ( up 26%). The scrip touched an intra-day high of Rs857 and a low of Rs810 and recorded volumes of over 31,00,000 shares on NSE.
Suzlon Energy plunged over 8% to Rs1289 after the company’s profit dropped 48% below estimates. Its Q1 profit dropped 54% to Rs894mn and net sales declined 10% to Rs8.39bn. The scrip touched an intra-day high of Rs1379 and a low of Rs1285 and recorded volumes of over 20,00,000 shares on NSE.
Bharti Airtel lost 2.5% to Rs923 after the company’s profit missed estimates. The company announced its Q1 result with profit at Rs14.13bn (up 73.5%) and net sales at Rs56.12bn (up 52.4%). The scrip touched an intra-day high of Rs959 and a low of Rs913 and recorded volumes of over 22,00,000 shares on NSE.
Cummins India edged higher by 0.5% to Rs385 after the company declared its Q1 result with net profit at Rs640.2mn (up 26%) and sales at Rs5.42bn (up 38.6%). The scrip touched an intra-day high of Rs402 and a low of Rs382 and recorded volumes of over 2,00,000 shares on NSE.
GT Offshore marginally gained by 0.3% to Rs811 after the Board of Directors of the company planned to raise FII limit to 49% from 24%. The scrip touched an intra-day high of Rs832 and a low of Rs802 and recorded volumes of over 1,00,000 shares on NSE.
Tata Motors pared its intra-day gains as the scrip marginally slipped 0.2% to Rs725. Reports stated that the company has won bidding for Land Rover, Jaguar. The scrip touched an intra-day high of Rs762 and a low of Rs725 and recorded volumes of over 31,00,000 shares on NSE.
Sugar stocks were back in action as reports stated that government is likely to lift restriction on Sugar exports. Bajaj Hindusthan surged by over 3% to Rs159, Balrampur Chini advanced 5% to Rs70, Renuka Sugar was up by 4.5% to Rs631 and Sakhti Sugar added 7% to Rs86.
Public sector Oil Marketing Companies ended with smart gains. Media reports stated that pressure is mounting on the Government to raise local retail prices of petrol and diesel following the spike in crude oil prices. HPCL gained 2.4%to Rs262, BPCL was up by 1.3%to Rs318. However, IOC slipped 2.3% to Rs410.
Banking stocks were on the receiving end led by fall in heavyweight HDFC Bank slipped by 1.5% to Rs1221, SBI was down by 1.7%to Rs1542, ICICI Bank slipped 1.2% to Rs946. PNB, Corp Bank and Syndicate Bank were the major losers among the Mid-Cap stocks.
Pharma stocks were in good health led by Ranbaxy Cipla rose over 4.5% to Rs194 after the company settled patent dispute with GSK, Dr Reddy’s Lab was up by 0.5% to Rs663, Wockhardt pharma gained by over 3.5% to Rs396 and Glenmark added 0.2% to Rs690.
IT stocks also gained momentum led by IT bellwether Infosys as the scrip advanced 1.6% to Rs2020 after the company announced that it won a seven-year, US$250mn contract from Royal Philips Electronics, Wipro surged by over 3.5% to Rs518 and Satyam Computer added 1.3% to Rs494.
With F&O settlement behind us, bulls will look forward towards the RBI meet later next week as major good news from the corporate earnings are being factored in the price of the stocks. Though, on the whole outlook remains positive given the strong FII inflow. Having said that our bourses are not isolated and cues from the international markets would once again play vital role in keeping the sentiment of the traders intact. Inflation numbers would also be the key factor to watch out for.
Results Today:
Adani Ent, Avaya Global, BPCL, Bata, CEAT, IOB, J&K Bank, Madras Cements, MTNL, Moser Baer, Nagarjuna
Fertilizers, NIIT Tech, Peninsula Land, STAR, Titan and Tata Chemicals.
Fund Activity:
FIIs were net buyers of Rs2.78bn (provisional) in the cash segment on Thursday. On the other hand, local institutions were net sellers at Rs1.44bn. In the F&O segment, FIIs were net sellers at Rs11.74bn.
On Wednesday, FIIs sold worth Rs0.59bn in the cash segment. Mutual Funds were net buyers at Rs0.52bn.
Major bulk Deals:
Fidelity bought BILT. Reliance MF bought Bombay Dyeing while Morgan Stanley was the seller. Goldman Sachs bought CESC. Morgan bought IDFC while UBS Securities was the seller. Citigroup bought Karutiri Networks while BSMA was the seller. Bulk deals were seen on counters like Sadbhav Engineering and newly listed Surya Chakra.
Insider Trades:
Polaris Software Lab Limited: Manju Jain, W/o Mr. Arjun Jain, Chairman & Managing Director has purchased from open
market 75000 equity shares of the company on 20th July, 2007
NELCO Limited: Portfolio Management Schemes of Kotak Securities Ltd has purchased from open market 77207 equity
shares of the company on 20th July, 2007.
Lower Circuit:
IID Forgings and Prism Cement.
Upper Circuit:
Hindustan Oil, Goldstone Technologies, Ganesh Forgings, Bag Film, Evinix, Jai Corp, Raj Tele, Ramco Systems, Ruby Mills and Bank of Rajasthan
Delivery Delight (Rising Price & Rising Delivery):Balrampur Chini, CESC, HCL Tech, HPCL, IDFC, Satyam.
Abnormal Delivery:
Voltas, Bombay Dyeing, Sesa Goa, IndusInd Bank, Neyveli Lignite, Ballarpur Industries
Major News & Announcements:
Government likely to lift restriction on Sugar exports – Reports
Bharti Airtel Q1 profit at Rs14.13bn (up 73.5%), net sales at Rs56.12bn (up 52.4%)
Alfa Laval Q2 profit at Rs200.98mn (up 7%), revenue at Rs1.55bn (up 7.6%)
Subex Azure to hive off Service biz
Jai Corp Board to consider stock split on July 31
Tata wins bidding for Land Rover, Jaguar – Reports
Glaxo Q1 profit at Rs964.3mn (up 5.9%), net sales at Rs3.96 (down 2.7%)
Dabur Pharma Q1 profit at Rs1.33bn (up 101%), net sales at Rs740mn (down 8.7%)
Maruti Q1 profit at Rs4.99bn (up 34%), sales at Rs3914bn (up 26%)
GT Offshore plans to raise FII limit to 49% from 24%
Cummins India Q1 net profit at Rs640.2mn (up 26%) and sales at Rs5.42bn (up 38.6%)
Government to ease cement import norms to lower prices – Reports
Ranbaxy, GSK agree to settle US patent dispute
Suzlon plans to list in Europe at Appropriate Time