DB Corp
India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Tuesday, September 06, 2011
Markets under bear grip in Aug, post biggest monthly fall since Jan
The Indian markets have been turbulent in August 2011 on the back of global uncertainty and FII selling. The Sensex tumbled 8.36% and the Nifty dropped 8.77%
Major news for the month:
July inflation at 9.22% versus 9.44%
June IIP at 8.8% versus 5.6%
L&T Q1 net profit up 12%
Bharti Airtel Q1 consolidated net profit down nearly 28%
Tata Motors Q1 consolidated net profit at Rs2,000 crore
India’s factory output falls to a 20-month low in July
Q1FY12 GDP at 7.7% versus 9.3% yoy
Nifty September 2011 futures at premium
Turnover surges
Nifty September 2011 futures were at 5,068.25, at a premium of 3.95 points over spot closing of 5,064.30. Turnover in NSE's futures & options segment surged to Rs 109932.97 crore from Rs 82058.49 crore on Monday, 5 September 2011.
Reliance Industries September 2011 futures were at 824.55, near spot closing of 825.10.
Market scales 3-1/2 week closing high
The key benchmark indices edged higher amidst high volatility to scale 3-1/2 week closing highs aided by firm European stocks. The BSE Sensex was up 149.48 points or 0.89%, up close to 375 points from the day's low. The market breadth was positive. Index heavyweight Reliance Industries jumped more than 4%. Other index heavyweights, Larsen & Toubro, Infosys and ICICI Bank too gained.
The S&P CNX Nifty settled above the psychological 5,000 mark after sliding below that level at the onset of the day's trading session. Auto stocks were in demand on reporting good sales figures for August 2011. Bike makers Hero MotoCorp and Bajaj Auto retreated after scaling record peaks. Software stocks rose on bargain hunting reversing an intraday fall triggered by concerns that a likely economic slowdown in the US and Europe will hit technology spending by overseas clients. Banking pivotals were mixed and were off day's low.
Bond Market News - Sep 6 2011
The investors of bond market got jolted with discount listing of Shriram City Union
The attraction for Bond issue has finally subsided, Uphill task for new bond issue
Muthoot Finance got 35,000 application,
Strong possibility of withdrawal and stop payment worth Rs. 80/85 crore
Most negative atmosphere for the bond issue, laid in pipeline following numerous
Application were reported withdrawn from Muthoot finance and Mannapuram
Mutual Fund market is too impacted badly as the
SBI Gold Scheme, opened on August 22, worth Rs. 800 crore
Could raise merely Rs. 80 crore
via Grey Market Sources
Grey Market Premiums - Sep 6 2011
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Vaswani Ind. | 49 | Discount |
| SRS Ltd. | 58 | 2 to 2.50 |
| T. D. Power Systems | 256 | 4 to 5 |
| P. G. Electroplast | 190 to 210 | -- |
| Manappuram Finance | 1000 | 7 to 8 |
| Muthoot Finance | 1000 | 10 to 11 |
Markets may open lower
Euro zone debt worries and US recession woes may again drag the Indian markets in the opening trade. The markets will follow global cues for direction
Headlines for the day:
Cabinet clears land acquisition Bill
Maruti's 3rd plant at Manesar to be delayed due to labour & sales woes
Hero Group enters hospitality business
A weak opening on cards on global market jitters
The market is geared for a weak session of trade on weak global cues marred by fears that Europe's sovereign debt troubles are worsening and could trigger a second full-blown banking crisis. Trading of S&P CNX Nifty on the Singapore stock exchange indicates a fall of 41.50 points at the opening bell. However the recent resumption of buying by foreign funds may cap steep fall.
Foreign institutional investors (FIIs) bought shares worth Rs 133.22 crore on Monday, 5 September 2011, as per provisional data from the stock exchanges. Domestic institutional investors (DIIs) bought shares worth Rs 147.23 crore on that day.
Daily News Roundup - Sep 6 2011
Mahindra & Mahindra has raised prices by up to 2% for its entire range of products last month to offset the impact of high raw material rates. (FE)
BHEL has bagged a Rs13bn contract from NMDC for handling raw material at its steel plant at Nagarnar in Chhattisgarh. (BL)
Neyveli Lignite Corporation plans to invest Rs402bn to build power plants in Tamil Nadu, Rajasthan and Uttar Pradesh. (BS)
Sensex shows resilience…Nifty retains 5000
It was a strong show of resilience by the Indian equity markets even as the equities in other parts of the world sank on downbeat US jobs data and concerns over European debt crisis. Turnaround came in the afternoon after a disappointing morning session. Markets even ignored sharp drop in Indian service sector PMI for August.
Indian markets took heart from the recent turnaround in FIIs flows. Foreign investors have been net buyers over the last few sessions after offloading more than US$2bn last month. Moreover, monsoon has been good over the past couple of weeks, raising hope of some softening in food inflation once the new crop comes to the market.
Sensex shows resilience…Nifty retains 5000
It was a strong show of resilience by the Indian equity markets even as the equities in other parts of the world sank on downbeat US jobs data and concerns over European debt crisis. Turnaround came in the afternoon after a disappointing morning session. Markets even ignored sharp drop in Indian service sector PMI for August.
Indian markets took heart from the recent turnaround in FIIs flows. Foreign investors have been net buyers over the last few sessions after offloading more than US$2bn last month. Moreover, monsoon has been good over the past couple of weeks, raising hope of some softening in food inflation once the new crop comes to the market.
Subscribe to:
Posts (Atom)