India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Thursday, July 25, 2013
Rollover time: swings later in the day
In a minute there is time for decisions and revisions which a minute will reverse. - T S Eliot
Volatility is a given as the rollovers take place today. The outlook is weak given the subdued global cues. Some buying could set in towards the end but runaway gains are unlikely.
The banking counters may see some value buying after eight of the 13 major bank stocks slumped at least 5 percent on Wednesday.
Indian Oil Corporation could see some action as the Cabinet is likely to consider the proposal for sale of 10% stake in the company.
The rupee ended stronger at 59.15 against the dollar.
Container Corp of India will consider a bonus share issue today.
Cement counters are likely to see some action a Swiss cement major Holcim is set to increase its stake in Ambuja Cements from 50.55% to 61.39%. Ambuja, in turn, will buy Holcim’s stake in ACC.
ITC, ACC, Maruti Suzuki, Piramal Ent, Tara Jewels Bata India, Gail India, Mahindra & Mah Fin are the major results to look out for on Thursday
Asian markets are mostly lower. Japan's Nikkei 225 and Hong Kong's Hang Seng index were half a percent lower each. South Korea's Kospi index is marginally up while China's Shanghai index is flat.
A day after closing at peaks, Dow and S&P 500 slipped slightly on Wednesday, dragged down by Caterpillar, Broadcom and AT&T. All three delivered results short of Wall Street's forecasts. Caterpillar also lowered its earnings and sales outlook for the year, which sent its stock 2.4% lower. It was the biggest loser in Dow.
A tech stock rally powered by Apple's better-than-expected earnings limited the fall in US stocks on Wednesday. Apple rose 5% which helped Nasdaq end in the green zone.
The Commerce Department said new home sales rose to a five-year high, with an annual rate of 497,000 in June, up 8.3% from May.
Data later today is expected to show Britain's economy expanded at a faster pace in the second quarter.
Results watch: Maruti Suzuki, ITC, Biocon, Gail India, ACC, Strides Arco, Kalpataru Power, Thermax, Kansai Nerolac, Balaji Amin, Bata India, Container Corp, Emco, FAG Bearings, Bervin Invest, Bharat Bijlee, BF Invest, Granules India-, Jayant Agro, MRF, Muthoot Fin, NAVIN FLUORI, Gujarat State Fin, Mahindra & Mah Fin, Piramal Ent, Pricol, Shriram City Uni, SKS Microfinance, Torrent Power, THINKSOFT, Sterling Hol Res, TCI Developers, TTK Healthcare, Zee Entert, WPIL, Wendt India, Transport Corp.
Trends in FII flows: The FIIs were net sellers of Rs4.04bn in the cash segment on Wednesday, while the domestic institutional investors (DIIs) were net sellers of Rs3.28bn, as per the provisional figures released by the NSE.
The foreign funds were net buyers of Rs2.73bn in the cash segment on Tuesday, according to the SEBI figures.
Global Data Watch: Nationwide Housing Prices n.s.a (YoY) (Jul) GBP, Nationwide Housing Prices s.a (MoM) (Jul) GBP, Unemployment Survey (Q2) EUR, M3 Money Supply (3m) (Jun) EUR, M3 Money Supply (YoY) (Jun) EUR, Private loans (YoY) (Jun) EUR, IFO - Current Assessment (Jul) EUR, IFO - Business Climate (Jul) EUR, IFO - Expectations (Jul) EUR, Consumer Confidence (Jul) EUR, Gross Domestic Product (QoQ) (Q2)Preliminar GBP, Gross Domestic Product (YoY) (Q2)Preliminar GBP, Index of Services (3M/3M) (May) GBP, 30-y Bond Auction EUR, 10-y Bond Auction EUR, Durable Goods Orders (Jun) USD, Durable Goods Orders ex Transportation USD, Initial Jobless Claims (Jul 19) USD, Continuing Jobless Claims (Jul 13) USD, EIA Natural Gas Storage change (Jul 19) USD, Kansas Fed manufacturing activity (Jul) USD, National Consumer Price Index (YoY) (Jul) JPY, National CPI Ex Food, Energy (YoY) (Jul) JPY, National CPI Ex-Fresh Food (YoY) (Jul) JPY, Tokyo Consumer Price Index (YoY) (Jul) JPY, Tokyo CPI ex Food, Energy (YoY) (Jul) JPY, Tokyo CPI ex Fresh Food (YoY) (Jul) JPY.
In other news in the media
Cairn India is planning a capex of Rs160bn for finding and producing more oil over the next three years through the end of FY 2016. (BL)
Fortis Healthcare plans to raise up to US$43.5mn through various instruments, including issue of Foreign Currency Convertible Bonds in Singapore. (BL)
The Telecom Disputes Settlement and Appellate Tribunal stayed the Rs6.5bn penalty on Bharti Airtel for allegedly violating the subscriber local dialing norms between 2002 and 2005. (BS)
Jindal Power, a subsidiary of Jindal Steel and Power, has tied up Rs54bn in loans for two units of its upcoming 2,400- Mw generation plant in Chhattisgarh. (BS)
SpiceJet will fill by the first week of August the posts of chief executive officer and chief commercial officer (CCO), left vacant by the resignations of Neil Mills and Harish Moideen Kutty. (ET)
GVK Oil and Gas, will go slow on investing further into the development of seven deep-water blocks it has on the West Coast due to inordinate delay in getting government clearances. (ET)
Tata Consultancy Services has completed the acquisition of French enterprise solutions provider Alti, a move that will help the company to expand its reach in Europe. (ET)
NTPC will invest Rs89bn to develop its own mines and cut the share of imported coal in its total consumption to 10% in three years from 21% despite a near 40% rise in generation capacity.(ET)
Oriental Bank of Commerce hikes some deposit rates for term deposits of less than Rs10mn under various maturities from 91 days to less than a year. (BL)
Bharti Airtel’s high capacity terrestrial optical fibre link between India and Bangladesh has become operational. (BL)
The Central Board of Excise and Custom said car models, which are known as sedans, will attract 27% excise duty, as applicable to large cars and not 30%, as announced in the Budget. (BL)
The Heavy Industries Ministry has written to the Finance Ministry seeking an additional 5% import duty on power equipment. At present, there is 21% duty on such equipment. (BL)
FIIs in buying mode
Net inflow of Rs 220.60 crore on 23 July 2013
Foreign institutional investors (FIIs) bought shares worth net Rs 220.60 crore on Tuesday, 23 July 2013, compared with net outflow of Rs 380.70 crore on Monday, 22 July 2013.
The net inflow of Rs 220.60 crore on Tuesday, 23 July 2013, was a result of gross purchases of Rs 2525.70 crore and gross sales of Rs 2305.10 crore. The entire net inflow of Rs 220.60 crore pertained to secondary equity market transactions. The S&P BSE Sensex had jumped 143.01 points or 0.71% to settle at 20,302.13 on that day, its highest closing level since 4 January 2011.
FIIs have sold shares worth net Rs 5765.70 crore in July 2013 so far (till 23 July 2013). FIIs sold shares worth Rs 11026.90 crore in June 2013.
FIIs have purchased shares worth a net Rs 66412.70 crore in 2013 so far (till 23 July 2013). FIIs bought shares worth a net Rs 128359.80 crore in calendar 2012.
There are a total of 1,756 foreign funds registered with the Securities & Exchange Board of India.
Market may open lower on weak Asian stocks
The market may start the day's trade lower tracking weakness in Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 33 points at the opening bell. The market may remain volatile today, 25 July 2013, as traders roll over positions in the futures & options (F&) segment from the July 2013 series to August 2013 series. The near month July 2013 derivatives contracts expire today, 25 July 2013.
ACC, GAIL (India), ITC, Maruti Suzuki (India) and Sterlite Industries unveil quarterly results today, 25 July 2013.
Two-wheeler major Hero MotoCorp after trading hours on Wednesday, 24 July 2013, reported 10.86% decline in net profit to Rs 548.58 crore on 1.25% decline in total income to Rs 6271.78 crore in Q1 June 2013 over Q1 June 2012. The company said the net profit declined due to higher tax rate on account of the expiry of 5 years (April 2008-March 2013) of 100% exemption in Haridwar, where the largest-producing manufacturing plant of the company is located. With the expiry of the tax benefit, the tax liability of the company went up to 26.9% in Q1 June 2013, from 16.3% from Q1 June 2012. The decline in net profit is also reflective of the newly-levied higher surcharge in the Finance Bill 2013, Hero MotoCorp said in statement.
Commenting the first quarter results, Mr. Pawan Munjal, MD and CEO, Hero MotoCorp said: "The fact that our profit before tax has surpassed the previous as well as the corresponding quarter, despite a marginal de-growth in our volumes during the quarter and the overall economic downturn, is a strong statement of our intent and vision. Our operating profit has also improved compared to the previous and the corresponding quarter. We are determined to sustain the trajectory of positive momentum in the coming quarters as well. Q1 of this fiscal was an action-packed quarter for us when we rolled out a slew of innovative initiatives including the 'industry-first' five-year warranty on our entire range of products and our own dedicated retail financing arm. We continued to grow ahead of the industry in both scooters and 125cc motorcycles this quarter, thereby building further on our market share gain in these segments. We had a record month in May, with our highest ever dispatches in a month. Retails also kept pace with record 1.1 million-plus retail sales in April-May -- the highest-ever retails in a non-festival period. Heavy and early rains in June have slowed down the momentum a bit, but we are optimistic about growth in the second half of the fiscal. Our product launches that are planned around the festive season should contribute towards accelerating growth. On the new market front, after entering Central America and Africa, we are now geared-up for Latin American markets of Peru and Ecuador which should be in the month of August".
Oil exploration firm Cairn India's consolidated net profit fell 18% to Rs 3127 crore on 8% decline in revenue to Rs 4063 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result after market hours on Wednesday, 24 July 2013.
Cairn India reports revenue net of profit-sharing with the government in all blocks and Rajasthan block royalty expense. During the quarter, the profit petroleum pay-out to the government rose from 20% to 30% in the DA1 in the Rajasthan block. The gross cumulative Rajasthan development capital expenditure as on 30 June 2013 was $3.9 billion, of which $107 million was spent in Q1 June 2013 including $19 million in DA 2.
Cairn India said it achieved highest ever gross operated production of 212,442 barrels of oil equivalent per day (boepd) in Q1 June 2013. The company achieved record average daily production of 173,517 boepd for Rajasthan block during the quarter.
Commenting on the first quarter results, Mr. Elango P, Whole time Director, Cairn India said: "I am very pleased to report that we are once again delivering robust operational and financial results with the company achieving its highest ever gross operated daily production. We continue to generate substantial cash flow from one of the lowest cost producing assets in the world and are well placed to deliver success from our $3 billion capital expenditure programme. We remain focussed on driving production growth from our core Rajasthan asset and delivering positive results from our extensive exploration and appraisal program. We remain particularly excited by the deep gas prospects and welcome the recent Government decision on gas pricing that will encourage higher investments in exploration and the development of gas discoveries. We expect the government to come out with a policy on Integrated Development Plan that will help in reducing the time from discovery to production".
Swiss cement major Holcim on Wednesday, 24 July 2013, announced a major restructuring of its India operations. The board of directors of Ambuja Cements on Wednesday, 24 July 2013, approved a proposal, wherein Ambuja will first acquire from Holderind Investments, Mauritius (Holcim), a 24% stake in Holcim India for a cash consideration of Rs 3500 crore, followed by a merger of Holcim India into Ambuja. The intra-group transaction will result in Ambuja holding 50.01% stake in ACC. The merger swap ratio proposed by two independent accounting firms and approved by Ambuja's board, is one Ambuja share for 7.4 Holcim India shares, translating into an implied swap ratio of 6.6 Ambuja shares for every ACC share, Ambuja said in a statement. Based on the approved merger ratio, Ambuja will issue 58.4 crore new equity shares of the company to Holcim, as consideration for the merger. Post the merger, the expanded capital base of Ambuja (post cancellation of the shares held by Holcim India in Ambuja and the issuance of new shares as aforesaid) will increase by 28%. Holcim will then own 61.39% of Ambuja and Ambuja in turn own 50.01% of ACC.
In addition, Ambuja's board also provided its approval for Ambuja to make commercially reasonable efforts to invest up to Rs 3000 crore to acquire an economic ownership in ACC of up to 10% without triggering a mandatory open offer.
Ambuja said that this restructuring exercise is expected to be EPS accretive from year one post completion of the transaction. There is synergy potential of about Rs 900 crore through supply chain and fixed cost optimization expected to be realised in a phased manner over two years post completion of the transaction.
Currently, Holcim owns a little over 50% stake in both Ambuja and ACC.
Meanwhile, Ambuja Cements' net profit fell 30.9% to Rs 324 crore on 8.6% decline in net sales to Rs 2346 crore in Q2 June 2013 over Q2 June 2012. The company announced Q2 result after market hours on Wednesday, 24 July 2013.
Ambuja Cements also that the board of directors of the company at its meeting held on 24 July 2013 approved setting up of a 2.17 million tonnes per annum (MTPA) greenfield clinkerization project at Marwar Mundwa, District Nagaur, Rajasthan and three clinker grinding units of 1.5 MTPA capacity each at Marwar Mundwa, Rajasthan, Dadri (phase II), Uttar Pradesh and Osara, Madhya Pradesh at an approximate cost of Rs 3500 crore.
Rural Electrification Corporation (REC) and Damodar Valley Corporation (DVC) have signed a loan agreement for funding of DVC's first 2X660 MW supercritical thermal power unit at Raghunathpur in West Bengal's Purulia district. The agreement was signed on at Kolkata recently in the presence of Mr. Rajeev Sharma, CMD, REC, Mr. R.N Sen, Chairman, DVC and other senior officials from both the organizations. The loan amount of Rs 6362 crores is to be funded solely by REC. These units will be a part of Raghunathpur Phase II expansion programme of DVC. REC provides financial assistance and promotes rural electrification projects throughout the country. It funds state electricity boards, state government departments and rural electric cooperatives for rural electrification projects.
Key benchmark indices edged lower in choppy trade on Wednesday, 24 July 2013, as the Reserve Bank of India's (RBI) latest measures to squeeze liquidity from the banking system to stem rupee's decline rattled investor sentiment. The S&P BSE Sensex lost 211.45 points or 1.04% to settle at 20,090.68 on that day, its lowest closing level since 17 July 2013.
Foreign institutional investors (FIIs) sold shares worth a net Rs 404.50 crore on Wednesday, 24 July 2013, as per provisional data from the stock exchanges.
Asian stocks fell on Thursday as investors weighed US economic data to gauge the fate of Federal Reserve stimulus. Key benchmark indices in Indonesia, Hong Kong, Singapore, Japan, and Taiwan were down by 0.07% to 0.85%. China's Shanghai Composite rose 0.36%. South Korea's Kospi was flat.
US stocks closed largely lower on Wednesday after improving home sales in the US renewed expectations that the Federal Reserve remains on course to winding down stimulus measures this year.
A report yesterday showed that new home sales rose more than forecast in June to a five-year high, and a manufacturing gauge rose. Fed Chairman Ben S. Bernanke has said asset purchases that have stoked bond and equity gains may be trimmed this year should economic risks subside. US new-home sales climbed 8.3% to an annualized pace of 497,000, the highest level since May 2008, according to Commerce Department data. The Markit Economics preliminary index of US manufacturing increased to 53.2 in July from a final reading of 51.9 a month earlier, the London-based group said.
Wednesday, July 24, 2013
Daily News Roundup - July 24 2013
Tata Motors will re-enter Australia with LCVs. The company will introduce its 4x2, 4x4, single and crew-cab variants, with Euro V Turbo diesel engines in Australia. (BL)
SpiceJet CEO Neil Mills has quit. The sources said Mills put in his papers after a recent meeting with senior airline management. (BL)
Tata Power announced that it had generated 43.386mn units of solar power from its 25 MW facility at Mithapur in Gujarat in 2012-13. (BL)
Reliance Infrastructure has completed four laning of a 52-km stretch on NH-11, from Jaipur to Reengus in Rajasthan. Collection has begun on the toll road built at a cost of about Rs5.55bn. (BL)
ONGC and its partners — Tata Petrodyne and Hindustan Oil Exploration Co will invest Rs11bn in developing an offshore block in the Gulf of Cambay, off the west coast of India. (BS)
Jindal Steel and Power will consume 25-30mn tons of iron ore a year by 2015, three times current volumes, and source most of the raw material from abroad. (BS)
Larsen and Toubro has sought shareholders nod to raise up to US$600mn through issuing securities. (BS)
JSW Steel may buy the local assets of Stemcor Holdings to gain iron ore mines. (BS)
DLF has sought shareholders’ approval to modify the company's memorandum of association for providing specific retirement benefits to directors who have made outstanding contribution to the growth of the company. (ET)
With the dynamics of the gas market changing, Petronet LNG feels that the price at which it inked a contract to buy gas from Exxon’s Gorgon project in Australia could be re-visited, for it may end up being the most expensive gas the country has ever imported. (BL)
Economy Snippets
RBI said banks would be permitted to borrow under the liquidity adjustment facility only up to 0.5% (lowered from 1%) of their net deposits and time liabilities at the benchmark interest rate of 7.25%. (BS)
RBI has tightened rules on the cash reserve ratio. Now, banks will have to hold cash equivalent of at least 99% of CRR on a daily basis, compared with 70% earlier. (BS)
The National Association of Software and Services Companies (Nasscom) has maintained its growth forecast for the industry, at 12-14% for fiscal 2014. (BL)
Ticket pricing by airlines is set to come under scrutiny, with the civil aviation ministry roping in anti- trust watchdog Competition Commission of India to keep in check indiscriminate airfare increases in domestic aviation. (BS)
Weak open; rupee could strengthen
Do the difficult things while they are easy and do the great things while they are small - Lao Tzu
While the equity market has managed to flirt with Jan ’11 highs, the RBI continues with its measures to keep the rupee under grips. The central bank imposed new restrictions on commercial banks’ access to cash. Expect call rates and bond yields to see a perk up.
The outlook for the equity market is a weak start. Global cues are not really healthy. Attention will remain on result counters like Hero Motocorp Cairn India and Yes Bank. The banking counters which have been gaining strength could see some weakness again. Banks would be permitted to borrow under the liquidity adjustment facility (LAF) only up to 0.5%of their net deposits and time liabilities at the benchmark interest rate of 7.25 per cent. Starting July 27, 2013, banks will be required to maintain a minimum daily CRR balance of 99% of the requirement, compared with 70% earlier.
The government could rejoice at this development. The number of India's poor fell to less than a quarter of its population in 2011-12, according to a Planning Commission estimate.
IT sector too has some news to cheer. The National Association of Software and Services Companies has maintained its growth forecast for the industry, at 12-14% for fiscal 2014.
Maruti could be in action as there is a threat to shut down the Manesar plant.
China's manufacturing sector slowed to an 11-month low in July. The flash HSBC/Markit Purchasing Managers' Index fell to 47.7 this month from June's final reading of 48.2.
The Dow rose 0.14% while Standard & Poor's 500 Index fell 0.19%. Nasdaq fell 0.59%. An index of June manufacturing activity from the Federal Reserve Bank of Richmond plunged 11 points.
Asian stock markets are weak. Japan's Nikkei was 0.5% lower while Hong Kong's Hang Seng index and South Korea's Kospi index is flat. China's Shanghai index is marginally lower.
Results watch: Cairn India, Dabur India, Indiabulls Real Est, Indiabulls Infra, Yes Bank, Hero MotoCorp, Central Bank, Century Enka, Ador Welding, Atul, DIAMONPOWER, Gujarat Lease, Century Enka, Indiabulls Wholesale, ION Exchange, Kalyani Steel, Kewal Kiran, KIRL INDUS, Mahindra Lifespace,Ponni Sugar Erod, Novartis India, Orient Refractories, Rane Brake, Phil Corp, Sagar Cements, SKF India, Shanthi Gears, STORE ONE, Uniphos Enter, United Phos, TCPL Pack.
Trends in FII flows: The FIIs were net buyers of Rs2.11bn in the cash segment on Tuesday, while the domestic institutional investors (DIIs) were net buyers of Rs608.6mn, as per the provisional figures released by the NSE.
The foreign funds were net sellers of Rs4.92bn in the cash segment on Monday, according to the SEBI figures.
Global Data Watch: Consumer Price Index (YoY) (Q2) AUD, Consumer Price Index (QoQ) (Q2) AUD, RBA trimmed mean CPI (QoQ) (Q2) AUD, RBA trimmed mean CPI (YoY) (Q2) AUD, HSBC Manufacturing PMI (Jul)Preliminar CNY, Markit Manufacturing PMI (Jul)Preliminar EUR, Markit Services PMI (Jul)Preliminar EUR, Markit Manufacturing PMI (Jul)Preliminar EUR, Markit Services PMI (Jul)Preliminar EUR, Markit Manufacturing PMI (Jul)Preliminar EUR, Markit PMI Composite (Jul)Preliminar EUR, Markit Services PMI (Jul)Preliminar EUR, Retail Sales s.a. (MoM) (May) EUR, Retail Sales n.s.a (YoY) (May) EUR, Trade Balance non-EU (Jun) EUR, CBI Industrial Trends Survey - Orders (MoM) (Jul) GBP, MBA Mortgage Applications (Jul 19) USD, M3 Money Supply INR, Markit Manufacturing PMI (Jul)Preliminar USD, New Home Sales (MoM) (Jun) USD, New Home Sales Change (MoM) (Jun) USD, EIA Crude Oil Stocks change (Jul 19) USD, RBNZ Interest Rate Decision (Jul 25) NZD, Corporate Service Price (YoY) (Jun) JPY, Foreign bond investment (Jul 19) JPY, Foreign investment in Japan stocks (Jul 19) JPY
In other news in the media:
Tata Motors will re-enter Australia with LCVs. The company will introduce its 4x2, 4x4, single and crew-cab variants, with Euro V Turbo diesel engines in Australia. (BL)
SpiceJet CEO Neil Mills has quit. The sources said Mills put in his papers after a recent meeting with senior airline management. (BL)
Tata Power announced that it had generated 43.386mn units of solar power from its 25 MW facility at Mithapur in Gujarat in 2012-13. (BL)
Reliance Infrastructure has completed four laning of a 52-km stretch on NH-11, from Jaipur to Reengus in Rajasthan. Collection has begun on the toll road built at a cost of about Rs5.55bn. (BL)
ONGC and its partners — Tata Petrodyne and Hindustan Oil Exploration Co will invest Rs11bn in developing an offshore block in the Gulf of Cambay, off the west coast of India. (BS)
Jindal Steel and Power will consume 25-30mn tons of iron ore a year by 2015, three times current volumes, and source most of the raw material from abroad. (BS)
Larsen and Toubro has sought shareholders nod to raise up to US$600mn through issuing securities. (BS)
JSW Steel may buy the local assets of Stemcor Holdings to gain iron ore mines. (BS)
DLF has sought shareholders’ approval to modify the company's memorandum of association for providing specific retirement benefits to directors who have made outstanding contribution to the growth of the company. (ET)
With the dynamics of the gas market changing, Petronet LNG feels that the price at which it inked a contract to buy gas from Exxon’s Gorgon project in Australia could be re-visited, for it may end up being the most expensive gas the country has ever imported. (BL)
Ticket pricing by airlines is set to come under scrutiny, with the civil aviation ministry roping in anti- trust watchdog Competition Commission of India to keep in check indiscriminate airfare increases in domestic aviation. (BS)
Market may edge lower in early trade on weak Asian stocks
The market may edge lower in early trade on weak Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 30 points at the opening bell. Indian stocks will react to the latest measures announced by the Reserve Bank of India (RBI) on Tuesday, 23 July 2013, to support the rupee which fell to a record low against the dollar this month. The market may remain volatile in the near future as traders roll over positions in the futures & options (F&) segment from the July 2013 series to August 2013 series. The near month July 2013 derivatives contracts expire tomorrow, 25 July 2013.
Ambuja Cements, Cairn India and Hero MotoCorp unveil quarterly results today, 24 July 2013. Among other major corporate results today, 24 July 2013, include that of Central Bank of India, Dabur India, United Phosphorus and Yes Bank.
Metal stocks may edge lower after a survey showed that China's manufacturing-sector activity is slowing further this month. China is the world's largest consumer of copper and aluminum.
Meanwhile, the Reserve Bank of India took new steps on Tuesday to support the rupee, signalling it will stay the course with its defence of the currency despite the risks to economic growth. The central bank tightened liquidity further and made it even harder for lenders to access funds with measures including lowering the amount banks can borrow or lend under its daily liquidity window. The RBI lowered the overall limit for borrowing under the daily liquidity adjustment facility (LAF) -- which offers funds in exchange for collateral -- for each bank to 0.5% of deposits from 1%. The central bank also said banks now needed to maintain 99 percent of their daily cash reserve ratio requirements -- the deposits they must set aside -- with the RBI, compared with 70% now. The change takes effect from the two-weekly period starting July 27. The RBI also announced the sale of short end cash management bills of Rs 6000 crore to drain out more cash from the banking system.
Key benchmark indices edged higher on Tuesday, 23 July 2013 as upmove in global stocks boosted sentiment. The S&P BSE Sensex rose 143.01 points or 0.71% at 20,302.13 on that day, its highest closing level since 4 January 2011.
Foreign institutional investors (FIIs) bought shares worth a net Rs 211.35 crore on Tuesday, 23 July 2013, as per provisional data from the stock exchanges.
Asian stocks fell on Wednesday as private survey showed manufacturing weakened further in July in China. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Singapore and Taiwan were down by 0.05% to 0.89%. South Korea's Kospi rose 0.17%.
China's manufacturing weakened further in July, signaling the worst of the nation's slowdown has yet to be reached, according to a preliminary survey of purchasing managers. The reading of 47.7 for an index released today by HSBC Holdings Plc and Markit Economics, was less than estimated and if confirmed in the final report Aug. 1, would be the lowest in 11 months. Readings below 50 indicate contraction.
Japan's exports rose for a fourth straight month in June as a weak yen made the nation's products more competitive and shipments to the European Union rebounded. Exports gained 7.4% from a year earlier, the Finance Ministry said in Tokyo today.
US stocks ended mostly lower on Tuesday after a decline in a regional manufacturing gauge prompted concern, but the Dow Jones Industrial Average climbed to a record close. The Federal Reserve Bank of Richmond said manufacturing activity in the central Atlantic region weakened.
Bank stocks in focus as RBI announces fresh liquidity measures
Bank stocks will be in focus as the Reserve Bank of India (RBI) announced fresh liquidity tightening measures after market hours on Tuesday to contain the volatility in the foreign exchange market. The overall limit for access to liquidity adjustment facility (LAF) by each individual bank is set at 0.5% of its own net demand and time liabilities (NDTL) outstanding as on the last Friday of the second preceding fortnight. This measure will come into effect immediately, from today, 24 July 2013 and will remain in force until further notice.
Currently, banks are allowed to maintain their cash reserve ratio (CRR) prescribed by the RBI on an average daily basis during a reporting fortnight, with a minimum of 70% of the required CRR on a daily basis. Effective from the first day of the next reporting fortnight from 27 July 2013, banks will be required to maintain a minimum daily CRR balance of 99% of the requirement.
Ambuja Cements, Cairn India and Hero MotoCorp unveil quarterly results today, 24 July 2013. Among other major corporate results today, 24 July 2013, include that of Central Bank of India, Dabur India, United Phosphorus and Yes Bank.
Coromandel International reported 81.4% fall in consolidated net profit to Rs 21.42 crore on 2.2% rise in net sales to Rs 1882.76 crore in Q1 June 2013 over Q1 June 2012.
WABCO India's net profit fell 15.4% to Rs 35.39 crore on 4.7% rise in net sales to Rs 248.91 crore in Q1 June 2013 over Q1 June 2012.
3M India's net profit fell 3.1% to Rs 21.09 crore on 1.9% rise in net sales to Rs 403.41 crore in Q1 June 2013 over Q1 June 2012.
Andhra Pradesh Paper Mills reported net profit of Rs 8.13 crore in Q1 June 2013 as compared to net loss of Rs 15.81 crore in Q1 June 2012. Net sales rose 37.4% to Rs 256.32 crore in Q1 June 2013 over Q1 June 2012.
Kokuyo Camlin's board of directors at its meeting held on 23 July 2013, has decided to issue equity shares on right basis in the ratio of 14 equity shares for every 29 shares held at Rs 33 per share.
SpiceJet's chief executive officer Neil Mills has reportedly resigned from his post a year-and-a-half before his contract ends.
Diamond Power Infrastructure's board of directors meet today to consider issue of bonus shares. The board would also consider issue of shares to the promoters on preferential basis.
Subscribe to:
Posts (Atom)