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Friday, April 30, 2010
Daily News Roundup - Apr 30 2010
RIL plans to sell gas to retail consumers in the US, using Atlas Energy’s infrastructure
UltraTech Cement has acquired Dubai-based ETA Star Cement for an enterprise value of Rs17bn. (ET)
Jindal Steel and Power is close to acquiring Oman based Shabed Iron and Steel for US$500mn. (ET)
Supreme Court verdict on RIL-RNRL gas issue is likely next week. (ET)
Air India has opposed the marketing alliance between Kingfisher Airlines and British Airways on domestic network. (ET)
NTPC-BHEL Power Projects, 50:50 JV between the two PSU’s, is expecting orders worth Rs70bn by the end of current fiscal (ET)
Infinite Computer Solutions has bagged an order worth Rs1.25bn. (BL)
Madhucon Projects has secured an EPC contract worth Rs12bn for setting up thermal power plant in Nellore district of Andhra Pradesh. (BL)
CESC has decided to revive West Bengal’s Balagarh thermal power project abandoned several years ago. (BL)
Pantaloon Retail and Future Value Retail plan to issue Rs7.5bn worth of NCD’s. (BS)
Mindtree has bagged the application development services segment of the UID Project. (BS)
Tata Power has been asked not to apply differential pricing for Reliance Infrastructure. (BS)
Nuclear Power Corporation of India is likely to sign JV Agreements with IOC and NALCO. (FE)
Finance Bill proposes to prohibit token concessions to housing, air travel, planters and healthcare. (ET)
Food inflation eases to 16.6% during the weekend April 17. (BL)
Government has directed mobile operators to stick to June 30 dead line for launch of mobile number portability. (ET)
According to the Telecom minister, 3G auction to end in a day or two. (BL)
The Government has hiked export duty on iron ore lumps to 15%. (BS)
Back to square one
To profit from good advice requires more wisdom than to give it. Wilson Mizner.
Yes, there is some profit to be made from the global rebound this morning, but one should not get carried away as the advance may run out of steam after a while. We expect a positive start following further improvement in risk tolerance worldwide. Early gains may not hold though and the market may once again turn choppy and rangebound. Near-term sentiment may remain at the mercy of global events even as earnings continue to trickle in, both here and overseas. Monsoon will be the next big event on the domestic calendar.
Meanwhile, the Government has been able to ward off the Opposition challenge in parliament and has passed the Finance Bill. It is also set to garner much more from the 3G-BWA auctions than what had been estimated earlier. So, the fiscal deficit for FY11 may look a tad better. The challenge is to maintain fiscal discipline by cutting wasteful spending rather than relying on extraordinary income.
April was a dull month for Indian equities, as the main indices were stuck in a range. A breakout from the current range may continue to elude us unless we have a major global rally. So, it would be wise to stay cautious though there is no need to panic. Be selective and careful in picking stocks, especially the small- and mid-cap ones.
Results Today: ABB, Adani Power, Allahabad Bank, Alok Inds, Bank of Maharashtra, Gateway Distriparks, GVK Power, HCL Info, HCC, IDBI Bank, IFCI, India Cements, IRB Infra, Moser Baer, NDTV, Reliance Capital, Sintex, Tata Elxsi, TTML, Tech Mahindra, Titan, Uco Bank and Vijaya Bank.
FIIs were net buyers of Rs904mn in the cash segment on Thursday on a provisional basis, according to NSE web site. Local institutions were net buyers of Rs2.67bn.
Indian markets staged a smart come back on Thursday after losing sharply in the last two trading sessions. “Federal Reserve’s decision of leaving key interest rates unchanged and IMFs promise to increase the 45bn-euro aid package for
Markets were volatile on account of F&O expiry with the BSE Sensex gyrating over 130 points and the NSE Nifty swinging almost 50 points from their respective intra-day high’s and low’s.
The Mid-Cap and Small-Cap Banks and the Auto stocks were in demand, even the Realty stocks which were badly beaten down in the past two days were back. Metals and the Oil & Gas stock also attracted buying interest.
The BSE Sensex advanced 123 points to end at 17,503 and NSE Nifty gained 39 points to close at 5,254. Among the 30 components of Sensex, 19 ended in the positive terrain and 11 ended in the red.
Markets in Asia ended in the red; the Nikkei in
On the other hand, European indices were trading with positive bias, the DAX in
Among the BSE sectoral indices, the BSE Realty index was top gainer; the index gained 2.2%, followed by BSE Consumer Durables index up 2% and Banking index up 1.8%. Even the Mid-Cap and the Small-cap index lost 1.1% and 1.3% respectively.
Outside the frontline indices, the big gainers in the broader market were Corp Bank, Jet Airways, Cummins India, Yes Bank and Andhra Bank. On the other hand, losers included Marico, IOB, Petronet LNG and Mphasis.
Jindal Steel & Power is reportedly planning to acquire Shaheed Iron & Steel of
Shares of LIC Housing Finance shot up by over 5% to end at Rs949 after media reports stated that the company may seek a banking license. The scrip opened at Rs907 it touched an intra-day high of Rs949 and a low of Rs907 and recorded volumes of over 2.1mn shares on NSE.
Shares of Carborundum Universal advanced by 2.5% to end at Rs192 after the company announced that it sold a land and building property in
Shares of Essel Propack gained by over 3% to end at Rs49.60 after the company reported quarterly profit of Rs87mn as compared with a loss of Rs51mn a year earlier. The scrip opened at Rs49 it touched an intra-day high of Rs51 and a low of Rs49 and recorded volumes of over 0.3mn shares on NSE.
Hanung Toys announced that the board of directors will meet on April 29, 2010 to consider further issue of capital in domestic or foreign markets including but not limited to make private placement of equity shares to Qualified Institutional buyers (or QIP) and / or Global Depository Receipts ("GDRs"), Foreign Currency Convertible Bonds ("FCCBs"), and / or any other financial instruments convertible into Equity Shares, or giving the holder a right to subscribe to Equity Shares including fully / partly convertible debentures, bonds, warrants, whether attached to other securities or otherwise, subject to necessary approvals / permissions as may be required.
Shares of Hanung Toys gained by 3% to end at Rs261. The scrip opened at Rs255 it touched an intra-day high of Rs267 and a low of Rs254 and recorded volumes of over 1.8mn shares on NSE.
Ucal Fuel Systems
Investors with a short-term trading perspective can consider buying the stock of Ucal Fuel Systems. The down-trend from the January peak of Rs 110 halted at Rs 64 after the stock retraced 50 per cent of the previous up-move. A steady short-term uptrend is however unfolding from the trough at Rs 64. The higher troughs formed from this level are encouraging. The stock also managed to close above the near-term resistance at Rs 80 this week.
The weekly rate of change oscillator has just moved above the zero line suggesting the commencement of a medium-term uptrend. Daily rate-of-change oscillator as well as the relative-strength-index is featuring in the bullish zone. The stock reversed higher from the short-term uptrend line on Thursday. It can now move higher to Rs 86 or Rs 90 in the days ahead. Investors can buy the stock with the stop-loss at Rs 79.
via BL
Precious metals continue to witness mixed end
Gold ends lower but silver rises
Precious metal prices ended mixed with gold ending lower on Thursday, 29 April 2010 at Comex. Chances of Greece getting a sweet package deal from IMF and rest of the world helped the euro rebound today. Gold dropped from its four month high levels. Gold came under pressure as investors grew more confident an improved rescue agreement for debt-strapped Greece will soon be reached. Silver prices rose.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Thursday, gold for June delivery ended at $1,168.8 an ounce, lower by $3 (0.3%) an ounce on the New York Mercantile Exchange. During intra day trading, gold fell to a low of $1,162.2. Yesterday, gold had highest closing since December. Last week, gold ended higher by 1.5%. For the month of March, gold slid 0.4%. For the first quarter of this year, gold rose by 1.7%, its sixth quarterly rise. On a year to date basis, gold is higher by 6.4%.
On Thursday, May Comex silver futures ended higher by 44 cents (2.4%) at $18.55 an ounce. Last week, silver lost 2.9%. For the month of March, silver ended higher by 5%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 8.5%.
In the currency market on Thursday, the dollar index, which measures the strength of the dollar against basket of six other currencies fell by 0.4%. The euro rebounded against the dollar today. Concerns over spreading contagion to other European countries lessened somewhat on reports that officials were considering a multi-year rescue package for Greece that could total more than 100 billion euros ($133 billion), compared to prior plans for a one-year aid package of roughly 45 billion euros.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.
Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level.
At the MCX, gold prices for June delivery closed lower by Rs 129 (0.75%) at Rs 16,975 per ten grams. Prices rose to a high of Rs 17,077 per 10 grams and fell to a low of Rs 16,930 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 365 (1.3%) higher at Rs 27,972/Kg. Prices opened at Rs 27,573/kg and rose to a high of Rs 28,040/Kg during the day's trading.
Thursday, April 29, 2010
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