India’s 1Q12-13 GDP data came in at 5.5 percent, higher than the expected number of 5.3 percent for the Jan-March quarter.
The GDP (factor cost) came in at an estimated at INR 13,06,276 cr vs INR 12,38,738 cr a year ago. (Moneycontrol/Economic Times)
Sesa Goa: Co. to buy stake in Goa Energy from Videocon for INR 53.7cr. (Money Control/PTI)
Federal Bank : HSBC Iris Investment Mauritius sold 8,516,310 shares of co. at INR 401.04. ICICI Prudential Mutual fund A/C Dynamic Plan bought 1,043,485 at INR 400.40. Warhol limited bought 1,175,000 shares at INR 400.74. (MoneyControl)
United Breweries – Share prices hit record highs of INR 657 on news of an amalgamation with Scottish and New Castle report. The stock continues on its upward trend started from yesterday where it rose 9 percent.
The stock is trading up 20 points or 3.28 percent at INR 649.30 on the BSE
Jaiprakash Associates – Co. saw its stock price tank 8 percent on news of the co. launching a FCCB issue of USD 150 m for repayment of existing securities. The 5.75 percent coupon note due 2017 was set at a conversion price of INR 77.50 a share.
Stock price down at INR 64.65, or 8.23 percent on the BSE.
Investment bank Morgan Stanley reports that a delay in reforms on fuel subsidy could see the outlay rise up to around INR 190,000 cr during FY2012-13. Lack of price rises in that of petrol and diesel would see the subsidy bill spiral out of control in India, which heavily subsidizes fuel.
As a result of these events, the firm is negative in its outlook on oil stocks and has downgraded ONGC to equalweight from overweight. GAIL, meanwhile has an underweight rating on its equity on declining oil volumes and higher imports. (Moneycontrol)
The BSE index will see around 74 stocks shifted to the notorious Trade-to-Trade group (T2T) group on not meeting certain index related criteria. Some of the prominent firms affected by the decision include SKS Microfinance, Mastek, Wockhardt, HeidelbergCement and many others.
Investors who wish to trade in T2T group stocks are unable to short sell the stock unless they have prior delivery of the stock and intra day trading is not permitted. Hence, investors would take this news as a negative which is what has sent most of their stock prices tumbling down.
GAIL – Gas transmission firm GAIL secured a contract to purchase 12 cargoes of liquefied natural gas (LPG) from GDF Suez for the 2013-14 period. The agreement would provide GAIL with 0.8 m tonnes of LPG. The firms plan to jointly set-up a gas import terminal in India in which GDF would have a 26 percent stake in the project. (Moneycontrol)
The Government of Japan lowered its expectations of the performance of its economy on the effects of the global economic crisis. The government cited lower demand in overseas markets and volatility in the capital markets for the lower assessment.
Slowdown in personal consumption, home construction, exports and imports and lower industrial output could lower the GDP. (Bloomberg)
The German IFO business Confidence Index, a gauge of business sentiment amongst 7000 applicants surveyed, fell to 102.3 in August from 103.2 in July. Expectations came in at 102.7 but the decline was the fourth consecutive one which affected Europe’s largest economy. (Bloomberg)
RBI stated that India experienced a deceleration in investments in FY2011-12 when GDP data declined to 6.5 percent, a nine year low. A 50 percent decline in new investments declined to INR 2.1 t from INR 3.9 t a year ago.
Investments in infra and metals saw the biggest decline which encompasses investments for major projects. Infra sector investment declined 52 percent to INR 1 t on a y/y basis.