DAILY MARKET REPORT – 24 JULY 2012

Markets closed marginally in the positive territory in trade today. Global cues, too, were mixed, as we also saw some disappointing PMI numbers coming out in trading hours. Sensex closed at 16918.08 points, up 40.73 points (0.24%). The Sensex touched highs of 16953.94 and a lows of 16884.32 points today. The Nifty closed marginally higher by 10.25 points at 5128.20 (0.20%). It touched a high of 5139.40 and a low of 5116.75 points today. Earnings and PMI data combined with Moody’s lowering outlook on Germany summed up the day today.

On news from the global cues, Asia ended mixed but between +/- 0.20 percent to 0.80 percent in trade on Spain. Europe currently is trading flat today on Spain and PMI data which came in lower. France, Germany and Eurozone PMI came in today while China’s HSBC PMI data came in better than expected.

On the sectoral indices front on the BSE, Midcap Index was up 0.22 percent and the BSE Smallcap Index rose 0.23 percent. The FMCG Index rose 1.57 percent, Oil & Gas Index increased by 0.60 percent and the Metal Index also gained 0.54 percent. The Capital Goods Index declined 0.73 percent, the IT Index fell 0.49 percent and the Healthcare Index declined 0.17 percent.

On the individual stock front, we saw earnings come in today. Co.’s such as Lupin, Shriram Transport, Canara Bank, Tata Elxsi, Wipro, Torrent Pharma amongst other which reported their numbers.

RCom declined 4 percent to INR 59.60, still the effects of the deferred IPO weighing in on investors. Wockhardt rose 6 percent to INR 976 as FII’s purchased an additional stake in the co.

On the currency front, the Rupee rose to INR 55.92 to the US Dollar. Citigroup Inc stated that the currency could touch levels of 57 and above on absence of policies implemented by the government.

Commodities traded higher during the session with WTI at USD 88.43 up 0.33% and Brent trading at USD 103.28 up 0.02%. On the weather front, severe thunderstorm expected in parts of New York, eastern Pennsylvania, northern New Jersey, Vermont and New Hampshire Monday.

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(CNBC, Business Standard and Economic Times)

DAILY MARKET REPORT – 18 JULY 2012

The markets ended in the positive territory in today’s trade on positive global cues, the CPI inflation data which came in lower at 10.02 percent.The index saw buying activity in stocks in the metals, realty, capital goods and tech sectors. The Index however remains range bound between 5150 – 5300. Investors see not many major events happening in the markets and hence the narrow range. Fed however did not propose a QE issue and I guess, markets were waiting for such an event to provide short-term momentum.

The Sensex closed 79.71 points or 0.47 percent higher at 17185.01 points. The index touched a high of 17200.42 and a low of 17038.59 points in trade today. The Nifty closed 23.45 points higher to end at 5216.30 points. It touched a high of 5222.85 and a low of 5169.05 points in trade today.

From the global market scenario,Asia was lower in trade on the outcome of the Fed not introducing major stimulus measures. China ended marginally positive for an otherwise lower close. Europe however has opened higher, although marginally as earnings reports of co.’s buoyed markets.

Credit Suisse reported its earnings, but shares of the co. gained as it announced a slew of measures to cut costs, sell assets to add around CHF (Swiss francs) 8.7 b (USD 8.9 b) to boost its capital. With issues relating to the stability of the banks, the move would be welcomed by investors for the near term. But it remains to be seen as to how the co. would go about with it and its performance in the subsequent quarters.

On the sectoral indices front on the BSE, the Metal, Realty, Capital Goods and IT index gained by an average of 1 – 2 percent each. Auto and  while Auto, Oil  and Gas Indices declined in trade.

On the individual stock front, Greaves Cotton surged 9 percent to INR 67 a share on a volumes which of 3.33 m shares were 10x normal volumes. News of the co. signing a long term agreement with Atul Auto in the previous week saw the share price surge. Bajaj Auto posted its 1Q12 earnings and the stock closed higher by 2.4 percent at INR 1480 a share. Tata Motors declined 3 percent to INR 220 as the stock went ex-dividend today. The co. proposed a dividend of INR 4  a share.

On the currency front, the Rupee closed 0.23 paise higher at 55.28 to the US Dollar.

Commodities traded lower during the session with WTI at USD 88.76 down 0.52% and Brent trading at USD 103.73 down 0.26%. On the weather front, thunderstorm expected over Boston, New York, Philadelphia and Washington D.C.

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( Business Standard, Economic Times and Moneycontrol)

EQUITY UPDATE – 13 JULY 2012

ASIA

China’s job market is displaying signs of stress, according to analysts, which could prompt the government to increase fiscal spending to prevent a slowdown. The news comes as China is scheduled to report second quarter GDP data on Friday and median forecasts estimate the country to expand by 7.5 percent, its slowest pace in three years. One caveat in the jobless data for China is the 200 m migrant workers and labourers working in factories and construction industry. (Financial Times)

Taiwan Semiconductor Manufacturing Corp and Samsung are jointly in talks with semiconductor manufacturing co. ASML Holdings NV to acquire a 10 percent stake in it. Intel already has a USD 4.1 b investment in the co. which is why ASML is keen on divesting stake. ASML is keen on offering the co’s to purchase a 25 percent stake. (Financial Times)

INDIA

Reliance Industries – Co. conducted a roadshow in Singapore as it plans to raise USD 1.5 b in loans to expand it petrochemical plant in Jamnagar, Gujarat. (Economic Times)

Reliance Power – Co. has secured loans of USD 1.1 b from three Chinese lending firms to fund its 3960 megawatt project in Sasan, Madhya Pradesh. . (Economic Times)

According to data released by the RBI, bank’s loans and advances grew at a slower pace on lower corporate borrowing in the first quarter of FY12-13. Banks credit operations increased by 1.2 percent in 1Q12-13 while deposits also rose 1.9 percent. (Business Standard)

Jindal Group – Co. plans to construct a textile unit in Nashik, India. The project is expected to have an outlay of INR 1500 cr. (Economic Times)

EUROPE

European Banking Authority (EBA) stated that banks in Europe, which earlier had a shortfall in capital amounting to EUR 76 b, have now raised a combined capital of EUR 76 b before the deadline set for June. The EBA expressed its satisfaction over the capital raising, which was mostly done through equity and retained earnings, dividends,  convertible debt instruments. (Financial Times)

British Petroleum plc – Co. has decided not to go ahead with its USD 1.5 b offshore oil project in Alaska on the high costs associated with it. The Liberty field in Alaska is estimated to hold reserves of 100 m barrels and was expected to have an output of 40,000 barrels a day. (Financial Times)

BHP Billiton, Vale and Anglo American would be divesting stake in their non-core mining operations to lay focus reducing expenditure and shareholder backlash. (Financial Times)

Spanish government announces a slew of public spending cuts and increases in taxation totalling EUR 65 b until 2015 to reduce its fiscal deficit. Value added tax was raised to 21 percent from 18 percent and unemployment benefits would be reduced. Subsidies to coal mines have been reduced by 60 percent as well. The economic turmoil in the country saw 10 yr bond yields decline 14 basis points to 6.70 percent after it touched highs of 7 percent. (Financial Times(

NORTH AMERICA

Avenue Capital Group LLC, a hedge fund, raised USD 2.78 b in capital to launch its Europe centric distressed debt investment fund. The fund is expected to invest in UK, Germany, Ireland, Belgium and the Netherlands, amongst others. (Bloomberg)

U.S Wholesalers Inventories rose 0.3 percent in May vs a gain of 0.5 percent in April. Declining sales saw inventory levels decline the most since 2008. (Bloomberg)

COMMODITY

According to a report compiled by British Petroleum Plc and a report by the Organization of Petroleum Exporting Countries, Iraq overtook Iran in the production of crude oil for the first time in more than 20 years. Sanctions imposed on Iran have been the chief cause of the decline in Iran’s production. Iran’s output came in at 2.963 m barrels a day in June vs Iraq’s output of 2.984 m barrels a day. . The fall in Iran’s output also impacted OPEC’s production to 31.36 m barrels a day in June vs 31.47 m in May. (Bloomberg)

DAILY MARKET REPORT – 11 JULY 2012

The markets closed lower in today’s trade on profit booking in realty, metals and auto sectors. The Sensex closed 129.21 points or 0.73 percent lower at 17489.14 points in trade. The index touched a high of 17582.99 and a low of 17466.99  points in trade today. The Nifty closed 39.05 points or 0.73 percent lower at 5306.30. The index touched a high of 5336.45 and a low of 5300.25 points in trade today.

On the sectoral indices on the BSE, The Midcap Index closed 0.17 percent lower and the Smallcap Index declined 0.28 percent.  The Realty indexwas down 1.24 percent, the Auto Index slipped 1.21 percent and the Metal Index was 1.12 percent lower but the Capital Goods Index was up 0.29 percent.

The Indian rupee closed 0.45 points lower at INR 55.39. Trader data revealed that Japanese banks sold around USD 270 – 300 m of dollars.

On the weather front, the Indian Meteorological Department stated that shortfall in rains has been at around 23 percent over the previous period, in what would affect agriculture in the country. The deficiency is expected to continue until next week, which could be a worrisome monsoon this year.

On the stock front, Wipro touched seven month low of INR 371.50 after it declined 3.3 percent in trade today. Volumes of 3.86 m shares were on news that auto firm General Motors would not be extending its outsourcing contract to the firm. Infosys gained 1.4 percent to INR 2495 on share buyback plans and its 1Q12 results, which will be filed tomorrow. Castrol India also rose 6 percent to INR 572 on news of an issuance of bonus shares. GVK Power rose 0.3 percent after falling 0.7 percent on payment of penalty fees at the Mumbai airport. HDFC reported its 1Q12 results as well. Infosys rose just 0.3 percent while TCS declined 0.2 percent ahead of earnings tomorrow. JSW Steel reported a 27 percent rise in steel output as well.

Globally, data on China auto sales showed improving numbers; Germany’s inflation declined as well.

For tomorrow’s trade, watch out for IIP numbers and earnings of Infosys and TCS. Reuter’s poll revealed that IIP would accelerate 1.8 percent for May over April. The forecasts ranged from 0 to growth of 4.8 percent.  If data comes on the lower side, then markets could be volatile in trade with a particular eye on industrial and manufacturers.

Commodities traded higher during the session with WTI at USD 85.16 up 1.49% and Brent trading at USD 99.09 up 1.14%. Later in the day EIA crude oil inventory for the week ended June 6 is expected show a drawdown of -1.156m versus previous -4.270m.

Kindly check the Market Summary tab for further information on stock-related data.

(Bloomberg, Economic Times and Moneycontrol)

EQUITY UPDATE – 11 JULY 2012

GEO-POLITICAL

Iran’s oil output for June came in at 3.2 m barrels, leading to record 20-yr low output. Sanctions imposed on the country have adversely impacted its output. (Financial Times)

ASIA

China’s trade surplus rose of USD 31.7 b in June, nearly twice as that in May. Exports increased 11.3 percent on a y/y basis  but was lower than May’s number by 15.3 percent. Imports increased 6.3 percent on a y/y basis and 12.7 percent on a m/m basis. Lower imports would be a cause of concern for investors as a slowdown in the Chinese economy could further dent global recovery. (Financial Times)

Superior Aviation Beijing – Co. is in talks to acquire  airplane manufacturer Hawker Beechcraft for around USD 1.79 b. (Financial Times)

INDIA

Non-resident Indian, or Indians living abroad infused a total of USD 4.753 b in Indian banks in the form of deposits during the April – May 2012 period. The amount was almost 7 times in excess of the amount invested a year ago for the same period. The weakening rupee and India’s high domestic interest rates contributed to the inflow. (Economic Times)

Direct tax collections incl. refunds rose 47.2 percent to INR 84,273 cr for the April-June 2012 period vs INR 57,267 cr a year ago.  (Business Standard)

Renault India – Co. launched its brand Renault Duster in Kerala and aims to sell a total of 30,000 vehicles of the brand in India by 2012. The co. is also keen on introducing smaller cars costing below INR 450,000. (Economic Times)

FII’s were net buyers in today’s trade at INR 606.54 cr on gross purchases of INR 2170.26 cr and gross sales at INR 1563.72 cr. Domestic institutional investors were net sellers at INR 488.33 cr. They made gross purchases of INR 830.16 cr and sold INR 1318.49 cr in trade. (Business Standard)

Vehicle sales in India for the June 2012 period  rose by 8.2 percent under tough market conditions. Sales totaled 155,763 units with domestic ca sales at 143,851 units. Maruti Suzuki led the sales by recording a 23 percent m/m rise at 70,977 units.  Tata Motors saw a decline in sales of around 26 percent at 13,595 units vs 18,522 units in the previous month. (Economic Times)

Automobile industry body Society of Indian Automobiles Manufacturers (SIAM) stated that forecasts for March 2013 would be lower than expected on higher costs,  slower economic expansion and fuel prices affecting consumers. The body also stated that demand would revive by the second half of the year.  Rise in excise duty also pushed up vehicle prices. (Economic Times)

Gujarat State Petroleum Corporation (GSPC): Co. plans to invest a total of INR 25,000 cr with INR 13,704 cr outlined for two gas transmission projects.  The firm is also in talks to acquire a 65 percent stake in BG Group for INR 2500 cr. (Business Standard)

EUROPE

UK trade manufacturing data for May exceeded expectations of median forecasts, which was taken as a positive signal in today’s trade. Factory output rose 1.2 percent in May vs -0.8 percent in April. Median forecasts came in at a decline of 0.1 percent. (Bloomberg)

Italian Industrial Output data rose 0.8 percent in may vs a fall of 1.9 percent in April. (Bloomberg)

NORTH AMERICA

Job openings in the US rose by 195,000 to touch 3.64 m for May vs a 294,000 decline in April. Hiring picked up marginally as co.’s expanded sales and operations at a moderate pace while layoffs also increased. Employment rose by 148,000 to 4.36 m in May, driving the hiring rate to 3.3 percent vs 3.2 percent in April. Layoffs, excl. retirements rose  to 1.89 m in May vs 1.74 m in April. (Bloomberg)

The National Federation of Independent Business’s index of investor confidence in the US declined to 91.4 from 94.4 for May 2012 period. (Bloomberg)

DAILY MARKET REPORT – 05 JULY 2012

Flat trading in the markets seems to be the trend so far this week. Marginal gains sees the Sensex and Nifty in consolidation mode, taking on from global cues with an eye on the interest rate decisions taken by the European Central Bank (ECB). It is expected that the ECB would cut rates today.

The Sensex closed 75.86 points or 0.43% higher at 17538.67 with a high of 17562.89 and a low of 17423.45 in trade today. The Nifty touched highs of 5333.65 and a low of 5288.85 points to close at 5327.30, up 24.75 points.

On the sectoral indices front for BSE, the FMCG Index gained 1.08 percent, Bankex Index advanced 1.0 percent; the Power Index inched up by 0.84 percent;  Metal Index declined 0.57 percent alongwith the Realty Index declining 0.55 percent.

Oil marketing company shares were placed under review by Goldman Sachs today on issues related to diesel price hikes not impacting profits, stability in cash flows.

Barclay’s plc saw a outlook review on the recent happenings in the co. by Moodys.

On the individual stock front, Reliance Industries gained 0.4 percent on hopes of better refining margins in the 2HY12 period. Ashok Leyland gained 2.8 percent on higher capex plans of INR 4,000 cr over the next three years as it would receive tax benefits through a conference call. Maruti Suzuki rose 2.3 percent to touch INR 1250 as its clocked gains of 12 percent this week on higher y/y growth in auto sales at 96,597 units for June 2012 vs 80,298 units sold in June a year ago. Retail stocks rose on a report that the government could permit foreign investors to own majority stakes in domestic retail supermarkets and department stores post the Presidential elections on July 19.

The Rupee touched INR 55.02 levels to the dollar in trade today, gaining 0.46 in trade.

Commodities inched higher during the session with WTI at USD 88.12 up 0.52% and Brent trading at USD 101.88 up 2.11%. On the weather front, strong storms are expected over Detroit, Chicago and Cleveland. Today EIA crude oil inventory are expected to show a draw down of -1.929m from previous draw down of -0.133m.

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(Business Standard, Economic Times and Bloomberg)

DAILY MARKET REPORT – 03 JULY 2012

The markets closed flat again on a lacklustre trading session. The Sensex closed 26.73 points higher at 17425.71 points or 0.15 percent higher. The Index touched an intraday high of 17526.82 and a low of 17351.50 today. The NSE Nifty closed 9.35 points higher at 5287.95 points or 0.18 percent higher.

Deutsche Bank upgraded the utilities sector stocks in India.Sugar industry stocks rose on news that production would decline by 4 percent on lower recovery due to deficient rainfall. Oil marketing firms rallied in trade on news that revenue losses on diesel and petrol and cooking gas declined by 36 percent and 44 percent respectively.

One of the major event of the day saw Barclays CEO Bob Diamond tender his resignation with immediate effect on the aftereffects of the Libor scandal.The Reserve Bank of Australia held its main cash rate at 3.5 percent, unchanged on material easing.

On the global market scenario, Asia closed higher by marginal to a higher level on hopes of a stimulus. Europe too is marginally higher on hopes of stimulus and policy action.

On the sectoral index front on the BSE, the Midcap Index gained 0.50 percent, while the Smallcap Index moved 0.86 percent higher. The Realty index gained 1.98 percent, Metal index inched 0.57 percent higher;  Bankex moving up by 0.48 percent. TheIT Index was declined 0.51 percent and the FMCG index declined 0.47 percent.

On the currency front, the currency appreciated to touch 54.90 to the Dollar. Selling of dollars by banks improved sentiment, leading to its highest rate in one and a half months. On similar lines, Fitch conducted a rating analysis on corporates which could likely be affected in terms of rupee depreciation.

Commodities moved higher with WTI at USD 85.22 up 1.76% and Brent trading at USD 99.33 up 2.04%. On the weather front, severe storms expected over New York, Boston and Washington D.C.

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(Business Standard, Economic Times and Moneycontrol)

DAILY MARKET REPORT – 28 JUNE 2012

The markets ended flat in trade on a volatile day of trading today. The outcome of the EU Summit is awaited which could provide direction in the shorter term to the markets. The Sensex 30 index closed 23 points higher at 16990.76 (0.14%) and the Nifty 50 closed 7.25 points higher at 5149.15 (0.14%) higher in days trade.

The Sensex touched an intraday high of 17033.85 and a low of 16918.87 in day’s trade today. The Nifty touched an intraday high of 5159.05 and a low of 5125.30 points today.

The EU Summit could lead to the possibilities of further stimulus packages or debt issuances by the ECB. The central bank could also cut rates in the coming period to calm the markets. Globally, markets were mixed on trade on account of the EU Summit. Asian indices and European markets traded cautiously or were lower in trade. Europe opened lower in trade today.

The Indian Rupee touched 56.98 levels as it rose by 0.17 points as PM Manmohan Singh signaled his intent to boost the economy.

On the stock front, OnMobile Global hit a record low of INR 32.65 on FII’s and investors reducing their holdings on the co. struggling with its operations. On the sectoral indices, BSE Oil & Gas Index was down 0.59 percent, Bankex was 0.59 percent down and the BSE Capital Goods Index declined 0.33 percent. The BSE FMCG Index was up 0.71 percent, BSE Power Index rose 0.18 percent and the BSE Auto Index gained by 0.01 percent.

Commodities moved lower with WTI at USD 80.05 down 0.20% and Brent trading at USD 92.92 down 0.62%. On the weather front, showers and thunderstorms are expected from plains to the Deep South and eastern seaboard.

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(Business Standard, Economic Times and Moneycontrol)

DAILY MARKET REPORT – 21 JUNE 2012

The Indian Indices closed higher in today’s trade. The Sensex 30 crossed the 17,000 mark to close at 17032.56, up 135.93 points or 0.80%. It touched an intraday high of 17,042 and lows of 16,800 levels in trade today. The Nifty closed at 5165 points, up 44.45 points today. It touched highs of 5165 levels and lows of 5093 in intraday trade.

Asian markets closed lower by 0.50 – 1.00 percent on weaker yen. Europe is trading lower on last night’s Fed’s statements at the FOMC statement.

The Indian rupee hits record lows against the US Dollar in trade today to breach the 56 level mark.

Cement stocks were penalised by competition watchdog CCI, by imposing a penalty of 50 percent of their profits in FY10 on grounds of cartelization.

On the stock front, Mastek rose 6 percent to INR 106 a share on news of the firm signing a USD 30 m deal with US based Majesco Mastek. Reliance Industries dropped 3.25 percent to INR 713 on lower estimates of output at the KG D6 basin. Output is expected to have decreased by 50 percent, according to Niko Resources. Moodys reviewed Tata Power for a possible downgrade on covenant breaches.

Commodities moved lower with WTI at USD 80.56 down 1.09% and Brent trading at USD 91.61 down -1.17%. On the weather front, tropical disturbance are expected to originate in the western Caribbean and Southern Gulf of Mexico.

 

 

 

Kindly check the Market Summary tab for further information on stock-related data.

DAILY MARKET REPORT – 18 JUNE 2012

The Indian markets diverged from its global peers as the Reserve Bank of India left key policy rates and CRR unchanged. Sensex 30 index closed 244 points down at 16705.835 (1.44%). The Sensex touched a high of 17109.95 and a low of 16636.09 points in trade today. The Nifty 50 closed down 74.80 points at 5064.25 (1.46%) and it touched a high of 5190.20 and a low of 5057.25 in trade today. . Additionally government data showed that CPI inflation stood at 10.36 per cent Y/Y in May, while WPI inflation rose to 7.55 per cent in May from 7.23 per cent on M/M basis. RBI’s decision to keep interest rates unchanged was a significant factor which weighed on the stocks.

On the currency front rupee slid further hovering around INR 55.83/84.

In the individual stocks corner Tata Sponge rose almost 14 per cent in trade on news of 11.26 per cent stake acquisition by Tata Steel. Todays top gainers included Power Grid, Tata Steel, Bajaj Auto, Cairn and ACC. At the bottom end stocks included SBI, DLF, Sterlite Industries, ICICI Bank, PNB and HDFC Bank.

Globally markets have still held their gains, as Asian peers were buoyed by the results from the Greece elections. However the gains in the European markets have been trimmed as yield on the Spanish 10 year bonds remained elevated. The yields on the 10 year Spanish bonds rose by 25 basis points rising to 7.13 per cent. While Italian 10 year yields rose by 8 basis points to 6.21 percent.

Commodities have marginally pared back their gains with WTI at USD 84.04 up 0.01% and Brent trading at USD 97.69 up 0.08%. On the weather front, tropical rainstorm Carlotta is expected to collide with a tropical wave, creating a new center of circulation over the southern Gulf of Mexico. Additionally tropical cyclone Guchol is expected to bring torrential rains to Japan.

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(Moneycontrol, Economic Times & Bloomberg)