Indusind Bank, Media, Infrastructure

Indusind Bank, Media, Infrastructure

Positive opening likely; Inflation nos in focus

The global cues looks supportive and may lead to a positive opening for the Indian markets. SGX Nifty is also trading 16 points higher. Events for the day: Release of monthly inflation data. Results: TCS, Muthoot Finance. Stock in news: Bharti Airtel seeks alternative freuency band for 3G in J&K. JLR to add nearly 800 new jobs at UK plant. Gail plans Rs9,000 crore capex in FY 2014. Indian Indices: Today, the opening of the Dalal Street will be on a positive note led by supportive global cues. SGX Nifty is also trading 16 points higher. The December 2012 monthly inflation numbers are scheduled to be released today. Investors will closely watch the numbers as it can have a bearing on the RBI's decision making process for its third-quarter monetary policy review on January 29, 2013. Results: TCS, Muthoot Finance. On Friday (January 11, 2013), the Sensex closed at 19663, up by 0.09 points while the Nifty settled at 5951, slipping by 17 points. Global Indices: Asian markets rose on Monday (January 14, 2013). Japanese markets are shut today. European shares stalled on Friday (January 11, 2013), with weak economic data from the United States and concerns about the scope for more stimulus in China giving investors the excuse to lock in profits on a new year rally to multi-month highs. US stocks were little changed, after the Standard & Poor’s 500 Index rose to a five-year high, as banks slumped and China’s inflation grew. Daily trend of FII/MF investment in equities: The FIIs have been the net buyers Indian stocks to the tune of Rs281.70 crore on January 10, 2013. The domestic investors sold Indian shares worth a net of Rs96.00 crore on January 09, 2013. The data is as per the SEBI website.

Govt OKs 14 FDI proposals

On Friday (January 11, 2013), the government said it has approved 14 foreign direct ibvestment ( FDI) proposals worth about Rs1,311 crore including that of Hindustan Port. Now going into detail, the Finance Ministry said in a statement that based on the recommendations of Foreign Investment Promotion Board ( FIPB) in its meeting held on December 21, government has approved 14 proposals of foreign direct investment amounting to Rs1,310.60 crore approximately. FIPB has deferred six and rejected three proposals. Those rejected include proposal of Mumbai-based Fullife Healthcare for induction of foreign equity. The proposals which were deferred include that of Mahindra & Mahindra ( M&M) to provide service support for radar systems and defence electronic systems. Adding further, the FIPB, headed by Economic Affairs Secretary Arvind Mayaram, has also allowed pharma firm Aanhaneya Lifecare to raise funds worth Rs405 crore via issue of foreign currency convertible bonds. The proposal of Mumbai-based Hindustan Port to induct foreign funds worth Rs440 crore for investment in downstream companies was among those cleared by FIPB. Besides, the board has allowed Bangalore-based Syngene International to induct foreign equity of Rs125 crore. US-based Gavis Pharma LLC can also invest Rs73.75 crore in an Indian company engaged in the business of manufacture of injectable products.

Daily News Roundup - Jan 14 2013

Gail India plans to spend a Rs90bn in capital expenditure in the next fiscal, most of which will be used to complete the many on-going projects, a top company official has said. (ET) The Tata Housing Company limited has signed an MoU with the Gujarat government for constructing affordable houses worth Rs35bn in Ahmedabad district. (ET) Infrastructure major IVRCL Ltd has stopped work in the about Rs3bn hydel power project in Nepal, which it had won in 2010, demanding increase in the budget, sources said. (BL) GAIL has said it is looking to enter the gas shipping segment, primarily to bring in gas from its Sabine Pass fields in the US as also for shipping in gas from Gazprom’s Shtokman project in the Arctic region. (BL) Reliance Industries plans to set up three-in-one telecom towers, starting with Mumbai, as it readies to launch fourth generation telecom services across the country. (BL) Following a series of pay increments in the Gurgaon-Manesar automobile belt, a labour problem seems to be brewing over wage settlement terms at the Gurgaon unit of Hero MotoCorp, promoted by the Munjals. The immediate trigger could have been increments at the Manesar factory of former partner Honda Motorcycle and Scooter India (HMSI). (BS) Vijay Mallya’s Rs6.5bn investment plan to revive operations of the grounded Kingfisher Airlines has piqued its lenders, as it does not include repayment of the carrier’s existing bank debts. (BS) Reliance Broadcast Network is extending its regional presence, with a new Bhojpuri offering from its BIG MAGIC channel, in Bihar and Jharkhand. (BS) At its plant at Hansalpur near Mehsana in Gujarat, Maruti Suzuki India would primarily focus on exports, owing to the facility’s proximity to the Mundra port. The company would also bring vendors with whom it has joint ventures to the site. (BS) Tata Motors is living up to its reputation as one of Britain's biggest manufacturing employers and is set to add hundreds of new jobs at one of its UK plants. (ET) Tata Capital has expressed reservations about the Reserve Bank's proposed changes in the norms governing NBFCs, saying the move will negatively impact profits and raise lending rates. (ET) McCain Foods will invest Rs3.5bn to increase the existing production capacity at Mehsana in Gujarat. (ET) Economy Snippets Indicating that power tariffs could go up further, Power Ministry has said the price of electricity has to match the rising cost of inputs.(ET) The government has appointed a panel to look into issues related to compulsory licensing of drugs and whether cheaper versions of cancer medicines Trastuzumab, Ixabepilone and Dasatinib can be launched under the provision, a person with knowledge of the development said. (ET) Fiscal situation may worsen due to rising inflation, decline in economic growth and global slowdown, industry body Assocham said today. (BL) Asset financing non-banking finance companies (AFCs) have urged the RBI to permit them to raise external commercial borrowings. (BL) India has decided to formally suspend negotiations to finalise a trade liberalisation pact with Mauritius. (BS) The long pending negotiations for the India-European Union free trade agreement may finally move ahead with the EU’s chief negotiator scheduled to visit New Delhi this week, amid positive signals emanating from the 27-nation bloc.(BL)

Northward movement?

"The optimist pleasantly ponders how high his kite will fly; the pessimist woefully wonders how soon his kite will fall." - William Arthur Ward Colourful kites are crowding the skies. The festival known by different names like Pongal, Makar Sankranti and Lohri marks the beginning of the Sun's movement northward for a six month period. If only we knew for certain when or how long the northward journey of our market could last. After a positive surprise from Infosys, the street is perhaps expecting more blockbuster performance on the bourses even if companies just about manage to beat expectations. Reliance Industries, TCS and ITC are among the big numbers this week. The opening is set to be flat to mildly positive. As usual, the companies announcing results will be in focus. The inflation numbers will also be keenly watched and it is expected to have risen in December. The RBI had projected December inflation of around 8% in its October policy review. What the RBI does on January 29 is likely to be speculated as the week goes by. For the Nifty, the trading range of 5920-6100 remains intact. Asian markets are more or less flat. Japan is reviving its export engine by aggressively devaluing its currency. The yen has fallen over 14% since October last year. US markets managed to end the week with slight gains but this week will have a host of economic data besides results. Retail sales and consumer sentiment will be eyed here. Results watch: TCS, ARO Granite, Electrosteel Cast, Shree Ganesh Jewel, Maharashtra Scoot, Muthoot Fin,Vakrangee Soft. Trends in FII flows: This year so far, FIIs were gross buyers of shares worth Rs 25,458 crore, while they sold equities amounting to Rs 16,645 crore -- a net inflow of Rs 8,813 crore ($1.6 billion), according to Sebi data. The FIIs were net buyers of Rs8.25bn in the cash segment on Friday, while the domestic institutional investors (DIIs) were net sellers of Rs5.16bn, as per the provisional figures released by the NSE. The foreign funds were net buyers of Rs7.72bn in the cash segment on Thursday, according to the SEBI figures. On the global front, China will release its GDP numbers Global Data Watch: Coming-of-Age Day JPY, ANZ Job Advertisements (Nov) AUD, Home Loans (Nov) AUD, Investment Lending for Homes (Nov) AUD, Fed's Evans Speech USD, Wholesale Price Index (MoM) (Dec) EUR, Wholesale Price Index (YoY) (Dec) EUR, Industrial Output w.d.a (YoY) (Nov) EUR, Industrial Output s.a. (MoM) (Nov) EUR, Industrial Production w.d.a. (YoY) (Nov) EUR, Industrial Production s.a. (MoM) (Nov) EUR, Fed's William Dudley speech USD, Fed's Lockhart speech USD, NZIER Business Confidence (QoQ) (Q4) NZD, Food Price Index (MoM) (Dec) NZD, Money Supply M2+CD (YoY) (Dec) JPY In other news in the media: Gail India plans to spend a Rs90bn in capital expenditure in the next fiscal, most of which will be used to complete the many on-going projects, a top company official has said. (ET) The Tata Housing Company limited has signed an MoU with the Gujarat government for constructing affordable houses worth Rs35bn in Ahmedabad district. (ET) Infrastructure major IVRCL Ltd has stopped work in the about Rs3bn hydel power project in Nepal, which it had won in 2010, demanding increase in the budget, sources said. (BL) Reliance Industries plans to set up three-in-one telecom towers, starting with Mumbai, as it readies to launch fourth generation telecom services across the country. (BL) Indicating that power tariffs could go up further, Power Ministry has said the price of electricity has to match the rising cost of inputs. (ET)

Crude slips a little further

Prices pressured by inflation data out of China Crude oil prices ended lower on Friday, 11 January 2013 at Nymex. Oil futures settled lower on Friday, pressured as inflation data out of China that came in higher than expected and as investors banked some profits after a solid performance the prior day. Oil prices still saw a gain for the week, while natural-gas futures rallied in the wake of recent data showing a hefty drop in U.S. inventories. Light and sweet crude oil for February delivery lost 26 cents, or 0.3%, to settle at $93.56 a barrel on the New York Mercantile Exchange on Friday. Prices finished the week 0.5% higher. Among economic data expected for the day at Wall Street, the trade deficit widened to $48.7 billion during November after a downwardly revised prior month deficit of $42.1 billion. Market had expected that the deficit would come in at $41.8 billion. Export prices, excluding agriculture, decreased by 0.2% in December after they had decreased by 0.7% during the prior month. Excluding oil, import prices decreased by 0.1%, which follows the 0.2% decrease experienced in the prior month. The December Treasury Budget showed a deficit of $260 million, which was narrower than the deficit of $1.0 billion expected. The report has mattered little to market participants as equity indices did not respond to the news. But on Friday, data showed that China's consumer price index climbed 2.5% in December from a month earlier, accelerating from a 2% increase in November. The dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.3% on Friday. Among energy products on Friday, gasoline for February delivery slid 5 cents, or 1.9%, to end at $2.74 a gallon, down 0.9% for the week, while February heating oil gave up nearly 5 cents, or 1.5%, to $3.01 a gallon, losing 0.3% from a week ago. Natural gas bucked the energy downtrend, with February natural gas rallying 13 cents, or 4.2%, to finish at $3.33 per million British thermal units. Prices erased their losses for the week to score a 1.2% gain. The U.S. Energy Information Administration on Thursday reported a larger-than-expected 201 billion cubic foot draw in last week's natural-gas supplies.

Market may open higher; TCS's Q3 results in focus

The market may open higher on mostly higher Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 18 points at the opening bell. IT major, TCS announces Q3 results today, 14 January 2013. On macro front, the Central Statistics Office (CSO) will unveil data on inflation based on the combined consumer price index CPI) for urban and rural India and also inflation based on the wholesale price index (WPI) both for December 2012, today, 14 January 2013. WPI inflation is projected to rise to 7.3% in December 2012 from 7.24% in November 2012, as per the median estimate of a poll of economists carried out by Capital Market. Among the components of WPI inflation, the non-food manufacturing inflation or core inflation had hit 2-1/2-year hit low at 4.49% in November 2012. Inflation based on the consumer price index (CPI) edged up to 9.9% in November 2012 from 9.75% in October 2012. Petronet LNG's net profit rose 7.82% to Rs 318.50 crore on 31.52% rise in total income to Rs 8347.69 crore in Q3 December 2012 over Q3 December 2011. The company announced Q3 results before market hours today, 14 January 2013. Jaiprakash Power Ventures reported a net loss of Rs 97.58 crore in Q3 December 2012 compared to net profit of Rs 59.52 crore in Q3 December 2011. Total income rose 4.93% to Rs 438.31 crore in Q3 December 2012 over Q3 December 2011.The company announced Q3 results before market hours today, 14 January 2013 The results under review are in respect of 300 mega watts (MW) Jaypee Baspa II H.E. Plant, 400 MW Jaypee Vishnuprayag H.E. Plant, 1000 MW Jaypee Karcham Wangtoo H.E. Plant and Unit 1 of 2 X 250 = 500 MW Jaypee Bina Thermal Power Plant. The Jaypee Bina Thermal Power Plant had commenced commercial operation of its first unit of 250 MW on August 31, 2012, therefore the results of the current quarter are not comparable with the figures of corresponding quarter of previous year. Jaiprakash Power Ventures said that the board of directors of the company at its meeting held on January 12, 2013, has authorised, subject to approval of the shareholders by passing the resolution by way of postal ballot, raising of funds / resources upto Rs 3500 crore through various Domestic/International options, including QIP/ ECB with rights of conversion into shares / FCCBs/ ADRs/ GDRs/ FPO/ Optionally or Compulsorily Convertible Redeemable Preference Shares etc., pursuant to Section 81 of the Companies Act, 1958 for the company's ongoing projects and/or the projects of its joint venture and subsidiary companies. FMCG and agri-sector stocks will be in focus after the Centre said after trading hours on Friday, 11 January 2013, said that as per reports received from various states, sowing of rabi or winter crops so far this year has exceeded the area sown by this time last year. FMCG firms derive substantial revenue from rural India. The total rabi sown area stands at 580.83 lakh hectares (LH) against 578.34 LH during same time last year. The Election Commission on Friday, 11 January 2013, said that assembly polls will be held in Tripura on 14 February 2013. Assembly polls in two other states viz. Meghalaya and Nagaland will be held on 23 February 2013. The counting of votes for assembly elections held in Tripura, Meghalaya and Nagaland will take place on the same day on 28 February 2013. The focus on the stock market is currently on Q3 December 2012 results. Investors and analysts will closely watch the management commentary that would accompany the result which could cause revision in their future earnings forecast of the company for the current year and or next year. Axis Bank announces Q3 results tomorrow, 15 January 2013. Bajaj Auto unveils Q3 results on 16 January 2013. Hero MotoCorp announces Q3 results on 17 January 2013. HCL Technologies announces its Q2 December 2012 results on the same day. Reliance Industries, Wipro, HDFC Bank and ITC unveil Q3 results on 18 January 2013. UltraTech Cement unveils Q3 results on 19 January 2013. HDFC, NTPC, Asian Paints and Cairn India unveil Q3 results on 21 January 2013. Kotak Mahindra Bank unveils Q3 results on 22 January 2013. L&T unveils Q3 results on 24 January 2013. Maruti Suzuki India unveils Q3 results on 25 January 2013. ICICI Bank and Grasim Industries unveil Q3 results on 31 January 2013. Siemens will unveil its Q1 December 2012 results on 31 January 2013. IDFC announces Q3 results on 1 February 2013. Mahindra & Mahindra and Hindalco Industries unveil Q3 results on 8 February 2013. The barometer index, BSE Sensex, ended almost unchanged for the day on Friday, 11 January 2013 as gains a rally in IT stocks offset decline in index heavyweights ITC and Reliance Industries (RIL). The 50-unit S&P CNX Nifty edged lower on that day. The Sensex settled almost unchanged for the day at 19,663.64 on Friday. Foreign institutional investors (FIIs) bought shares worth a net Rs 825.18 crore on Friday, 11 January 2013, as per provisional data from the stock exchanges. Most Asian stocks rose on Monday, 14 January 2013. Key benchmark indices in China, Hong Kong, Indonesia, and South Korea rose by 0.2% to 0.75%. Key benchmark indices in Singapore and Taiwan fell by 0.7% to 0.74%. Bank of Japan holds a two-day meeting on interest rates in Japan on 21 and 22 January 2013. U.S. stocks ended little changed on Friday, 11 January 2013 with Wells Fargo & Co. weighing on the financial sector after the bank reported a decline in its net interest margin. The Federal Open Market Committee (FOMC) holds a two-day meeting on interest rates in the United States on 29 and 30 January 2013.

India Strategy - PSU

India Strategy - PSU 

Bajaj Auto

Bajaj Auto 

FMCG, metal stocks lead market decline

Key benchmark indices dropped to over one week low as tension between India and Pakistan following the brutal killing of two Indian soldiers by Pakistani troops along the Line of Control in Poonch district of Jammu and Kashmir on Tuesday, 8 January 2013 weighed on sentiment. The 50-unit S&P CNX Nifty settled below the psychological 6,000 level. The barometer index, BSE Sensex, was down 75.93 points or 0.38%, off 157.47 points from the day's high and up 39.43 points from the day's low. The market breadth turned negative from positive in late trade. The BSE Sensex has risen 239.88 points or 1.23% in this month so far (till 9 January 2013). From a 52-week low of 15,664.91 on 6 January 2012, the Sensex has risen 4,001.68 points or 25.55%. The index is off 189.84 points or 0.96% from its 52-week high of 19,856.43 hit on Monday, 7 January 2013. Coming back to today's trade, index heavyweight and cigarette maker ITC extended intraday losses. Another index heavyweight Reliance Industries (RIL) edged higher in volatile trade. FMCG stocks declined. Shares of Pidilite Industries reversed direction after striking record high. Auto stocks rose on renewed buying, with Tata Motors and M&M hitting their record high. Tyre maker MRF hit a record high. Bank pivotals were mostly higher. State-run banking giant SBI hit 52-week high. Private sector banking giant ICICI Bank hit an intraday high, matching its 52-week high hit on Monday, 7 January 2013. Shares of another private sector bank, Yes Bank hit record high. IndusInd Bank reversed direction after striking a record high on profit booking after reporting good Q3 results. Shares of companies whose fortunes are linked to orders from Indian Railways rose on reports Railways minister Pawan Kumar Bansal announced hike in fares from January 21. Realty stocks reversed intraday gains. Capital goods stocks also reversed intraday gains. Metal stocks declined. IT stocks edged lower. Pharma major Cipla reversed direction after striking a record high. Another pharma major Dr Reddy's Laboratories hit record high. The market edged higher in early trade on firm Asian stocks. The market retained positive zone in morning trade. The Sensex trimmed gains after hitting fresh intraday high in mid-morning trade. A bout of volatility was witnessed as key benchmark revered intraday gains and slipped into the red to hit fresh intraday low in early afternoon trade. Key benchmark indices dropped to fresh intraday low in afternoon trade. It slipped into the red after regaining positive terrain in mid-afternoon trade. It slumped to hit fresh intraday low in late trade. Foreign institutional investors (FIIs) bought shares worth a net Rs 887.38 crore on Tuesday, 8 January 2013, as per provisional data from the stock exchanges. The BSE Sensex was down 75.93 points or 0.38% to 19,666.59, its lowest closing level since 1 January 2013. The index fell 115.36 points at the day's low of 19,627.16 in late trade, its lowest level since 1 January 2013. The index gained 81.54 points at the day's high of 19,824.06 in mid-morning trade, its highest level since 7 January 2013. The S&P CNX Nifty was down 30.20 points or 0.5% to 5,971.50, its lowest closing level since 1 January 2013. The index hit a low of 5,958.45 in intraday trade, its lowest level since 1 January 2013. The index hit high of 6,020.10 in intraday trade, its highest level since 7 January 2013. The total turnover on BSE amounted to Rs 2520 crore, lower than Rs 2688 crore on Tuesday, 8 January 2013. The market breadth, indicating the overall health of the market, turned negative from positive in late trade. On BSE, 1,560 shares fell and 1,411 shares rose. A total of 128 shares were unchanged. The BSE Mid-Cap index fell 0.48%, underperforming the Sensex. The BSE Small-Cap index fell 025%, outperforming the Sensex. Among the 30-share Sensex pack, 19 declined while the rest of them rose. Index heavyweight Reliance Industries (RIL) rose 0.21% to Rs 852.15. The stock hit high of Rs 859.15 and low of Rs 848.30. Stock market regulator Securities & Exchange Board of India (Sebi) on 3 January 2013 said it has rejected offers by RIL and 12 other companies to settle allegations of insider trading in the shares of Reliance Petroleum before it was merged with its parent Reliance Industries in 2009. Sebi said the consent applications were rejected because they were not found to be in consonance with the Sebi circular dated 25 May 2012. In May last year, Sebi tightened its criteria for so-called consent proceedings, where the individual or entity being investigated pays a fee to the regulator to drop the case without admitting or denying wrongdoing. The regulator said a number of alleged offences, including insider-trading allegations, wouldn't be settled through consent proceedings. Index heavyweight and cigarette maker ITC fell 2.1% to Rs 279.30. The Ministry of Health and Family Welfare in October 2012 notified new pictorial health warnings to be depicted on tobacco product packs which will come into effect from 1 April 2013. The Ministry of Health and Family Welfare said in a statement on 22 October 2012 that three sets of warnings each have been notified for smoking as well as smokeless forms of tobacco product packages. The well-designed health warnings and messages are part of a range of measures to communicate health risks due to tobacco use. Pictorial health warnings communicate health risks in a visible way, provoke a greater emotional response and increase the motivation of tobacco users to quit and to decrease their tobacco consumption, the ministry's statement said. Graphic warning labels have a greater impact than text-only labels and can be recognized by low-literacy audiences and children, the statement added. Among other FMCG stocks, Godrej Consumer Products, Colgate Palmolive (India), Tata Global Beverages, Hindustan Unilever, Marico and Dabur India fell by 0.31% to 2.44%. Auto stocks edged higher. Tata Motors jumped 3.88% to Rs 326.35. The stock hit record high of Rs 329.90 in intraday trade today, 9 January 2013. The company's total sales (including exports) of Tata commercial and passenger vehicles declined 20.3% to 65,582 units in December 2012 over December 2011. The company on 1 January 2013 said that its newly introduced passenger car models Manza Club Class and Safari Storme are growing well in their respective segments. Due to increasing demand, the Safari Storme has been released only in the NCR region, Punjab, Uttar Pradesh, Rajasthan, Madhya Pradesh, Chhattisgarh, Maharashtra and Goa, and is being expanded in phases, Tata Motors said. Mahindra & Mahindra (M&M) rose 0.44% to Rs 962. The stock hit record high of Rs 974.55 in intraday trade today, 9 January 2013. Mahindra Reva Electric Vehicles, a part of the $15.9 billion Mahindra Group, on Tuesday, 7 January 2013, named its next generation, future ready, electric car as the 'Mahindra e2o'. The Mahindra e2o is the manifestation of Mahindra Group's vision of the 'Future of Mobility', which was revealed earlier this year by Group Chairman Anand Mahindra, M&M said in a statement on 7 January 2013. It involves the creation of future-ready vehicles that meet the 5 C's framework of Clean, Convenient, Connected, Clever and Cost Effective, M&M said. The Mahindra e2o is the first step in the creation of an entire electric vehicle value chain and ecosystem by the Mahindra Group, M&M said. Pronounced as 'Ee-too-oh', the electric vehicle has undergone extensive testing, validation and has been certified as road worthy in India, M&M said. The Mahindra e2o is slated to be launched soon and will be produced at Mahindra Reva's recently inaugurated plant in Bengaluru, M&M said. Started under the project code name NXR, the Mahindra e2o is 'Powered by Reva', benefiting from Mahindra Reva's extensive experience in electric cars, M&M said. The Mahindra e2o will use next generation Lithium Ion batteries and have a range of 100 kms per charge which is adequate for most daily journeys within the city, M&M said. The Mahindra e2o will enable users to charge their vehicle through any 15 ampere plug point at home, or at the workplace, M&M said. Ashok Leyland rose 0.37%. The company's total sales declined 19% to 7,299 units in December 2012 over December 2011. Sales of commercial vehicles excluding sales of small commercial vehicle (SCV) DOST, declined 34% to 5,230 units in December 2012 over December 2011. Sales of DOST jumped 88.26% to 2,069 units in December 2012 over December 2011. Maruti Suzuki India shed 0.41% to Rs 1,568.05. The stock had hit a 52-week high of Rs 1,599.90 in intraday trade on Monday, 7 January 2013. Maruti on 3 January 2013 said its total sales rose 3.2% to 95,145 units in December 2012 over December 2011. Domestic sales rose 5.9% to 82,073 units in December 2012 over December 2011. Export sales fell 11% to 13,072 units in December 2012 over December 2011. Shares of two-wheeler makers declined. Hero MotoCorp fell 1.56%. The company's total sales rose 8% to 5.41 lakh units in December 2012 over November 2012. Sales remained flat on year-on-year basis. Bajaj Auto declined 1.96% to Rs 2,155.60. The stock had hit record high of Rs 2,228.95 in intraday trade on 3 January 2013. Bajaj Auto's total sales rose 13% to 3.43 lakh shares in December 2012 over December 2011. Motorcycle sales rose 13% to 2.98 lakh units in December 2012 over December 2011. Three-wheeler sales rose 9% to 45,596 units in December 2012 over December 2011. Bajaj Auto's exports rose 5% to 1.26 lakh units in December 2012 over December 2011. TVS Motor Company slipped 0.75%. Tyre maker MRF rose 3.39% to Rs 13,796.90. The stock hit a record high of Rs 13,850 in intraday today, 9 January 2013. Bank pivotals were mostly higher. India's largest private sector bank by net profit ICICI Bank rose 0.27% to Rs 1,182.50. The stock hit high of Rs 1,188 in intraday trade today, 9 January 2013, matching its 52-week high hit on Monday, 7 January 2013. Yes Bank gained 1.05% to Rs 504.80. The stock hit record high of Rs 509.90 in intraday trade today, 9 January 2013. HDFC Bank fell 0.6%. The private sector bank has lowered its base rate--or the minimum rate of interest it can charge borrowers--by 0.1 percentage point, factoring in a reduction in its funding cost. HDFC Bank's new base rate at 9.7% is the lowest in India. The reduction in base rate took effect from 31 December 2012. The benchmark prime lending rate (BPLR), the main rate for the bank's old borrowers, has also been cut by 10 bps to 18.2%. IndusInd Bank shed 0.07% to Rs 434.50 after striking a record high of Rs 440.80 in intraday trade today, 9 January 2013. IndusInd Bank's net profit rose 29.76% to Rs 267.27 crore on 30.3% growth in total income to Rs 2156.29 crore in Q3 December 2012 over Q3 December 2011. IndusInd Bank announced Q3 result during market hours today, 9 January 2013. Shares of banking giant State Bank of India (SBI) rose 1.21% to Rs 2,523.50 after striking a 52-week high of Rs 2,535.90 in intraday trade today, 9 January 2013. The bank on 24 December 2012 said it has signed a Preliminary Non-Binding Memorandum of Understanding with Russian Direct Investment Fund (RDIF), to facilitate advancing bilateral economic cooperation and trade between Russia and India which is aimed at exploring investment opportunities in both the countries. The modalities of the Joint Venture are expected to be further discussed and finalised between the parties in due course. The fund will be operationalised on receipt of requisite regulatory approvals, SBI said in a statement. State-run Bank of India rose 1.06% after the bank after trading hours on Tuesday, 8 January 2013, said that the board of directors of the bank has approved the raising of Tier-I capital of the bank by issue fresh equity shares to the Government of India (promoters) or to other investors, on preferential basis or otherwise, subject to necessary approvals. Realty stocks reversed intraday gains. D B Realty, Unitech, and Sobha Developers shed by 0.72% to 1.64%. The Reserve Bank of India said on 17 December 2012 that upon a review of the policy related to External Commercial Borrowings (ECB) and keeping in view the announcement made in the Union Budget for the Year 2012-13, it has decided to allow External Commercial Borrowings (ECB) for low cost affordable housing projects as a permissible end-use, under the approval route. For the financial year 2012-13, an aggregate limit of $1 billion is fixed for ECB under the low cost affordable housing scheme which includes ECBs to be raised by developers/builders and NHB/specified Housing Finance Companies (HFCs), RBI said. This limit will be reviewed annually, RBI said. A low cost affordable housing project for the purpose of ECB would be a project in which at least 60% of the permissible FSI would be for units having maximum carpet area up to 60 square meters. Realty major DLF fell 1.42%. The Competition Commission of India (CCI) on 3 January 2013 said it has passed a supplementary order modifying the Apartment Buyers Agreement entered into between realty major DLF and the apartment allottees. The matter pertains to two separate DLF projects in Gurgaon. The CCI in its order after considering the modified terms of the Apartment Buyers Agreement submitted by both parties, has modified the terms of the Apartment Buyers Agreement in a manner which it considers fair and reasonable and takes into account the interest of both parties, the Ministry of Corporate Affairs said after trading hours on Thursday, 3 January 2013. CCI in its earlier order dated August 12, 2011 had held that DLF was a dominant enterprise which had violated the provisions of Section 4 of the Competition Act 2002 by entering into an agreement with apartment allottees that was one sided, abusive and unfair to the allottees. Accordingly the Apartment Buyers Agreement has been amended such that the abusive and unfair conditions present in the original one sided agreement have been removed, the Ministry of Corporate Affairs said. The CCI in its order has also considered the relevant provisions of the laws applicable to the development of group housing projects in Haryana, particularly the mandatory requirements which must be followed by every developer/builder, but which were not followed by DLF in this case, the ministry said in a statement. Capital goods stocks reversed intraday gains. BEML, Bhel, ABB, L&T and Siemens dropped by 0.4% to 2.59%. Havells India jumped 4.94% to Rs 681.15, extending recent gains triggered by the company revising trademark license agreement with one of its promoter group firms that owns the ‘Havells' brand. The stock hit a record high of Rs 684.70 in intraday today, 9 January 2013. Shares of Havells India have risen 6.97% in the preceding three sessions from a recent low of Rs 636.75 on Friday, 4 January 2013. Metal stocks declined. Sterlite Industries, Jindal Steel & Power, Tata Steel, Sail, Sterlite Industries, Hindalco Industries and Hindustan Zinc shed by 0.94% to 2.78%. Bhushan Steel tumbled 6.29% to Rs 444. The company on Monday, 7 January 2013, said it has fixed 16 January 2013 as record date for rights issue in the ratio of one equity share for every 15 equity shares held. The right issue has been priced at Rs 335 per share. Shareholders will have to pay Rs 167.50 per share on application and an equal amount on first and final call, Bhushan Steel said. IndusInd Bank fell 0.07% to Rs 434.50 on profit booking. The stock reversed direction after hitting record high of Rs 440.80 in intraday trade today, 9 January 2013. The bank announced during market hours today, 9 January 2013 that net profit rose 29.76% to Rs 267.27 crore on 30.3% rise in total income to Rs 2156.29 crore in Q3 December 2012 over Q3 December 2011. IT stocks edged lower. HCL Technologies slipped 0.21%. IT major Tata Consultancy Services declined 1.87%. TCS chief executive N Chandrasekaran said in a 2012 year-end review that the challenge before the company is to scale up its presence significantly in geographies like China, Japan, Latin America, Europe and the Middle East. There are plenty of opportunities in all these markets and the aim is to address them, he said. He said that TCS is winning lots of transformation deals in Europe. He said that TCS is always looking at inorganic growth opportunities, but they have to make business sense. India's third largest software services exporter by revenues Wipro fell 0.33%. India's second largest software services exporter by revenues Infosys rose 0.65%. The company announces Q3 results on Friday, 11 January 2013. At the time of announcement of Q2 September 2012 results on 12 October 2012, Infosys had cut both revenue and earnings guidance for the year ending 31 March 2013 (FY 2013) due to appreciation of the rupee against the dollar. The company had cut revenue growth forecast for FY 2013 to 17.3% from its July guidance of 19.7% growth. As per the new guidance, the projected revenue for FY 2013 is at least Rs 39582 crore. The company had cut the projected growth in earnings per share (EPS) for FY 2013 to 10.3% from its July guidance of 14.4% growth. As per the new guidance, the projected EPS for FY 2013 is at least Rs 160.61. Infosys had retained its revenue growth guidance for FY 2013 in dollar terms while lowering the guidance on earnings per American depository receipt (EPADS). Infosys retained its forecast of 5% growth in revenue to at least $7.343 billion for FY 2013. The company had reduced the guidance on FY 2013 EPADS to $2.97 from the guidance of $3.03 which the company had given on 12 July 2012 at the time of announcement of Q1 June 2012 results. Cipla shed 0.24% to Rs 427.80, with the stock reversing direction after striking a record high of Rs 435 in intraday trade today, 9 January 2013. Dr Reddy's Laboratories rose 0.12% to Rs 1,910. The stock hit record high of Rs 1,925.85 in intraday trade today, 9 January 2013. Wockhardt rose 1.51%. The company announced during market hours Tuesday, 8 January 2013, it has received final approval from United States Food & Drug Administration (USFDA) for marketing 25 mg, 50 mg, 100 mg, 200 mg and 300 mg extended release tablets of Lamotrigine, which is used in the treatment of epilepsy. Lamotrigine is the generic name of the brand Lamictal XR, marketed in the US by GlaxoSmithKline. Wockhardt is launching the product immediately and will be amongst the earliest generic versions of this product in the market, Wockhardt said in a statement. According to IMS Health, the total market for this product in the US is about $250 million. Wockhardt will be manufacturing the extended release tablets of Lamotrigine at its facility in Aurangabad, India. The technology for the extended release tablets was developed in-house. Wockhardt already markets several other products in the United States in the CNS segment, especially anti-convulsant drugs, Wockhardt said. Coal India (CIL) rose 1.62% The Ministry of Coal after trading hours on Tuesday, 8 January 2013, said it has invited Expression of Interest (EoI) for providing consultancy for restructuring of CIL, a Maharatna Public Sector Undertaking. The planning Commission and a number of high level committees have recommended restructuring of CIL keeping in view the rapidly increasing demand for coal and the need for enhancing coal production and to make the coal industry competitive in the rapidly changing economic scenario, the coal ministry said. Since establishment of CIL in 1975, there have been significant changes in the energy policy of the country particularly after the onset of economic liberalization in the early 1990s. The coal sector has been partially opened for private investment to captive consumption. Coal development policy has evolved over a period of time leading to doing away with the administrative price mechanism/decontrol of coal price and distribution, empowerment of performing public sector coal companies, etc, the coal ministry said. Bharti Airtel rose 0.82%. As per reports, Bharti Airtel has increased the price of its 1GB 2G data plan by 25% and Airtel 2G customers will now have to pay Rs 125 for 1GB of data, which was Rs 100 earlier. The company has also reportedly decided to increase both data and voice prices in the future in line with the rise in cost structure. The move is in a series of steps where telecom companies have hiked their call tariffs in the recent months in a bid to improve their margins. Shares of companies whose fortunes are linked to orders from Indian Railways rose on reports Railways minister Pawan Kumar Bansal announced an across-the-board hike in fares of all classes from from January 21 and said there will be no increase in fares in February rail budget. Kernex Microsystems, Kalindee Rail Nirman, Titagarh Wagons, Texmaco, and Stone India rose by 1.14% to 3.88%. Pidilite Industries fell 0.74% to Rs 227, with the stock reversing direction after striking record high of Rs 239.20 in intraday trade today, 9 January 2013. India said on Wednesday that Pakistan's ambassador to India had been summoned and spoken to in "very strong terms" over the killing of two soldiers in a firefight on the disputed Kashmir border. Foreign Minister Salman Khurshid said the violation of a 10-year-old ceasefire on the heavily militarised border was a matter of great concern and said he expected an appropriate response from Pakistan. Defence Minister AK Antony and National Security Advisor Shivshankar Menon briefed Prime Minister Manmohan Singh today, 9 January 2013, on the ceasefire violation and killing of two Indian soldiers by Pakistani troops in Poonch on Tuesday, 8 January 2013. Antony today, 9 January 2013, said that the killing of two Indian soldiers by Pakistani troops was highly provocative. He also said that India will register a strong protest against the ceasefire violation by Pakistan. India has summoned Pakistan High Commissioner Salman Bashir to lodge a protest over the brutal killing of two Indian soldiers by Pakistani Army troops. In a major escalation to the ceasefire violations and infiltration attempts, a group of Pakistan Army soldiers raided across the Line of Control in Mendhar Sector and killed two Indian soldiers and injured one more. The Pakistani troops attacked an area domination patrol party of the Indian Army. In the ensuing gunfight two Indian soldiers were killed and the body of one of them was mutilated by the intruders. Coming back to economics, Finance Minister P. Chidambaram last week said attracting foreign funds to India has become an economic imperative. Indian companies will soon start unveiling Q3 December 2012 results. Investors and analysts will closely watch the management commentary that would accompany the result which could cause revision in their future earnings forecast of the company for the current year and or next year. Infosys announces Q3 results on Friday, 11 January 2013. TCS announces Q3 results on 14 January 2013. Axis Bank announces Q3 results on 15 January 2013. Bajaj Auto unveils Q3 results on 16 January 2013. Hero MotoCorp announces Q3 results on 17 January 2013. HCL Technologies announces its Q2 December 2012 results on the same day. HDFC Bank and ITC unveil Q3 results on 18 January 2013. UltraTech Cement unveils Q3 results on 19 January 2013. HDFC, Asian Paints and Cairn India unveil Q3 results on 21 January 2013. Maruti Suzuki India unveils Q3 results on 25 January 2013. ICICI Bank and Grasim Industries unveil Q3 results on 31 January 2013. IDFC announces Q3 results on 1 February 2013. Mahindra & Mahindra will announce Q3 results on 8 February 2013. Fitch Ratings on Tuesday, 8 January 2013, reiterated its negative outlook on India's sovereign rating and said it is now worried more about the country's deteriorating fiscal outlook than a slowdown in economic growth and price pressures. Inflation and growth are likely to stabilize in the near term, but India's widening current-account and fiscal deficits have become a greater concern, it said. The Central Statistics Office (CSO) will unveil industrial production data for November 2012 on Friday, 11 January 2013. Industrial production had jumped 8.2% in October 2012. Apart from the exceptionally low base effect, industrial production growth in October was boosted by festival demand. The CSO will unveil data on inflation based on the combined consumer price index CPI) for urban and rural India and also inflation based on the wholesale price index (WPI) both for December 2012, on 14 January 2013. Inflation based on the consumer price index (CPI) edged up to 9.9% in November 2012 from 9.75% in October 2012. WPI inflation had eased to 7.24% in November 2012 from 7.45% in October 2012. The non-food manufacturing inflation or core inflation had hit 2-1/2-year hit low at 4.49% in November 2012. The Reserve Bank of India (RBI) undertakes Third Quarter Review of Monetary Policy 2012-13 on 29 January 2013. RBI kept its key policy rate viz. the repo rate unchanged at 8% after mid-quarter monetary policy review on 18 December 2012. The central bank said that in view of inflation pressures ebbing, monetary policy has to increasingly shift focus and respond to the threats to growth from this point onwards. Liquidity conditions will be managed with a view to supporting growth as stated in the Second Quarter Review (SQR) of Monetary Policy 2012-13 on 30 October 2012, thereby preparing the ground for further shifting the policy stance to support growth, RBI said. Overall, recent inflation patterns and projections provide a basis for reinforcing October guidance about policy easing in the fourth quarter, RBI said. However, risks to inflation remain and accordingly, even as the policy emphasis shifts towards growth, the policy stance will remain sensitive to these risks, RBI said. RBI said it is closely monitoring the evolving growth-inflation dynamic and will update the formal numerical assessment of its growth and inflation projections for 2012-13 as part of the third quarter review in January 2013. The government on 2 January 2013 constituted the Fourteenth Finance Commission. Former Reserve Bank of India Governor Dr. Y. V. Reddy has been appointed as the Chairman of the Fourteenth Finance Commission. The Commission will make recommendations to the Centre regarding the sharing of union taxes, principles governing Grants-in-aid to states and transfer of resources to local bodies. The Planning Commission last month lowered its economic growth forecast for the country for the five years through 2017 to 8% from a previous estimate of 8.2%. Finance Minister P .Chidambaram on 3 January 2013 said that there is a need to revive investment in manufacturing and service sector in order to create higher job opportunities. The Finance Minister said that the economy is passing through a difficult phase mainly due to external factors and, therefore, there is immediate need to tide over the current situation and then move to the path of higher growth. The Finance Minister was making opening remarks during his second pre-budget meeting with the representatives of various Central Trade Unions on Thursday, 3 January 2013. The Finance Minister said that there was a slowdown in investment in manufacturing sector and as a result not enough jobs were created. He added that due to the various steps and measures taken by the government in the last few months, there seems to be a change in the investment sentiments both in public and private sectors. He said trade unions can play an important role in reviving the manufacturing sector which in turn can lead to creation of more job opportunities in the sector. It remains to be seen if the Union Budget for 2013-2014 due in February 2013 is a reformist budget or a populist budget. Given that next general elections in India must be held before May 2014, it will be the last full-fledged budget of the Congress-led UPA government at the Centre and hence could be a populist one. European stocks were marginally higher on Wednesday as Alcoa Inc. began the U.S. earnings season by posting sales that beat estimates. Key benchmark indices in France, UK and Germany rose by between 0.01% to 0.32%. Most Asian stocks gained on Wednesday, 9 January 2013, as earnings season got off to a positive start in the US overnight, with US aluminum major Alcoa Inc. announcing that it swung to a profit in the fourth quarter. Key benchmark indices in Hong Kong, Japan, Singapore and Taiwan rose by 0.22% to 0.67%. Key benchmark indices in China, Indonesia and South Korea fell by 0.03% to 0.79%. Bank of Japan holds a two-day meeting on interest rates in Japan on 21 and 22 January 2013. Trading in US index futures indicated that the Dow could gain 14 points at the opening bell on Wednesday, 9 January 2013. US stocks ended broadly lower on Tuesday, 8 January 2013, with investors on alert for corporate earnings and guidance ahead of results from aluminium giant Alcoa Inc., which unofficially kicked off US fourth-quarter earnings season after the close of trading. The Federal Open Market Committee (FOMC) holds a two-day meeting on interest rates in the United States on 29 and 30 January 2013.

India Strategy and Outlook

India Strategy and Outlook 

Daily News Roundup - Jan 9 2013

Lenders to bankrupt Kingfisher Airlines have decided to take legal action against the airline company for its failure to repay debt of over Rs70bn despite repeated reminders. (ET) The Bombay High Court has dismissed a petition filed by Hindustan Unilever against a magistrate’s direction to the police to conduct an inquiry into the veracity of an advertisement of its water purifier ‘PURE IT'. (ET) Marico plans to demerge its services business Kaya into a separate listed firm in a move that could help improve valuations of the parent company that has been weighed down by the weak performance of its services arm. This is effective April 1. (ET)

Finding solace

There is nothing so bitter that a patient mind cannot find some solace in it. - Lucius Annaeus Seneca The Indian market seems to be in no hurry to get anywhere. Investors are keeping their fingers crossed ahead of the major earnings and a couple of macro-economic data expected in the coming week. A flat start is what lays in store for the main Indian indices today. A late recovery on Tuesday powered the Nifty to its psychological comfort zone of 6000. The Nifty needs to cement its position above 6000 levels for a couple of trading sessions to exhaust any selling pressure.

Check EPF Balance online

Now, you can check your EPF balance online using the new e-passbook facility available on EPFO (Employees Provident Fund Organisation) website. EPFO (Employees Provident Fund Organisation, India) has launched the e-passbook facility for EPF (Employees’ Provident Fund) subscribers—which will include their updated PF account status online. The new concept called EPF Account Passbook allows members to download their e-passbook multiple times in a month. The PF department no longer provides hard copy of the annual PF statement. EPF—commonly called PF—is a retirement benefit scheme that is available to the salaried employees. Both employees and employer contribute to the Fund at the ‘rate of 12%’ of the basic wages, dearness allowance and retaining allowance (if any) payable to employees per month. Thus, the total contribution to the Fund is 24%.

Precious metals add glaze

Gold ends higher for first time in four sessions Bullion metals at Comex finished higher on Tuesday, 08 January 2013. Comex gold futures prices made a steady climb throughout the session on Tuesday after three sessions of decline. Signs of demand from Asia perked up prices. Gold for February delivery rose $15.9 (1%) to settle at $1,662.1 an ounce on the Comex division of the New York Mercantile Exchange on Monday. Gold futures had tallied a loss of $42.50 an ounce, or 2.5%, over last three trading sessions. Gold ended 2012 with an overall yearly gain of around 7%, which marks the 12th consecutive year the yellow metal has posted yearly gains. On Tuesday, March silver rose $0.38, or 1.3% to settle at $30.47 an ounce. Silver finished 8.3% higher for the year 2012. In overnight news there was a mixed bag of economic data released by the European Union Tuesday. Most of it was downbeat, highlighted by the Euro zone seeing record high unemployment in November, at 11.8%. Traders are awaiting Thursday's monthly European Central Bank meeting. Asian traders are awaiting a fresh batch of Chinese economic data due out later this week and during the upcoming weekend. U.S. economic released Tuesday moved the precious metals markets very little. Latest assessment showed that China's annual economic growth may have quickened to 7.8% in the fourth quarter snapping seven straight quarters of weaker expansion, but the recovery is likely to be tepid and the economy may need continued policy support. China's export growth probably rebounded from three-month lows in December, although the recovery is likely to remain shallow due to weak demand in the United States and Europe, the country's two biggest customers. The data is due on Thursday. Reports overnight said demand for gold from China has increased markedly as the new year is under way. Chinese traders and investors are taking advantage of the recent dip to do some bargain hunting. Deutsche Bank joined other institutions that have cut their outlooks on gold prices, revising lower its 2013 and 2014 forecasts on Tuesday. Deutsche Bank reduced its average gold forecast for this year by 12.1% to $1,856 an ounce, as well as by 5% to $1,900 an ounce for 2014. Deutsche Bank also cut its price outlook for silver, by 16.8% to $37 an ounce for 2013 and by 5% to $38 for 2014. In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies rose by 0.7% on Tuesday. The index last Friday hit a four-week high, in the wake of the greenback-bullish FOMC minutes issued last week. The shine of last week's temporary U.S. fiscal cliff agreement by U.S. lawmakers has quickly faded. The market place is now looking forward with trepidation to the upcoming negotiations between the U.S. Congress and the Obama administration on budget and spending matters. Such is likely to limit trader and investor participation in many markets in the coming weeks. At the MCX, gold prices for February delivery closed higher by Rs 111 (0.36%) at Rs 30,974 per ten grams. Prices rose to a high of Rs 30,995 per 10 grams and fell to a low of Rs 30,865 per 10 grams during the day's trading. At the MCX, silver prices for March delivery closed higher by Rs 487 (0.83%) at Rs 58,470/Kg. Prices opened at Rs 58,050/kg and rose to high of Rs 58,650/Kg during the day's trading.