WEEKEND EQUITY UPDATE: 10 – 12 AUGUST

In a shortened trading week in the Indian markets on account of Independence Day on 15th August, key events to watch out for are:

1- India Inflation data

2 -Earnings: Tata Steel, Hindalco, Reliance Infra and Coal India among the major firms reporting their 1Q12 numbers.

3-Monsoon Session of the Parliament: The ongoing session awaits some policy response from the Finance Minister P. Chidambaram to prop up the economy.

(Economic Times)

FII Data: Inspite of lower than expected monsoons this year, FII’s have infused a total of INR 4800 cr in the equity markets. News of expected reforms from the ongoing parliament sessions are one of the major reasons for the increased investment inspite of dismal macro data. For the 2Q12 period (Apr – June) ,these institutions have infused INR 10,273 cr vs withdrawal of INR 1957 cr.

On stock specific news, it is observed that FII holdings have increased in IT stocks on rupee depreciation. Apart from HCL, stocks such as Infosys, TCS, Tech Mahindra and Wipro saw FII’s increase their holdings. Other IT firms such as Hexaware, Oracle Finance Services and Mphasis also saw an increase in FII holdings. (Economic Times)

Jindal Power and Steel Ltd – Mining firm is to begin production of coal from its mines in Indonesia and Mozambique. The firm will source its supply of coal for its plants producing steel. (Economic Times)

Bank of England’s Governor Mervyn King stated that the euro region crisis would not end unless massive reforms are undertaken. The crisis weighed in heavily on UK’s economy but reforms on the banking sector could be a step in getting on the path to recovery. (Bloomberg)

Tuesday would see German and French GDP data come out. Germany’s GDP on  q/q basis is expected to fall 0.1 percent vs prv period’s 0.0 percent. On a y/y basis, it is expected to expand slower at 1.0 percent vs 1.7 percent previously. France could see its GDP contracting 0.1 percent as per expectations over previous period’s unchanged number. (Bloomberg)

 

 

DAILY MARKET REPORT – 16 JULY 2012

Well, inflation numbers came in today, and it came in lower than expected. Markets, which were volatile in trade, were affected by the news of a lower than expected monsoon season, which potentially could have an impact on the economy of India. The Meteorological Department announced that rains would miss its forecast in July and would be lower in September. IT stocks also disappointed in trade today.

On the global scenario, markets ended flat but China declined on earnings worries. Europe has also traded flat in trade today as not much in terms of events happened.

Markets ended near their day lows today. The Sensex closed 110.39 points or 0.64 percent lower at 17103.31 points today. Sensex touched a high of 5246.85 and a low of 5190.45 in trade today. The Nifty index closed lower by 30 points, below the 5200 mark at 5197.25 points which is near its 20-day moving average. Nifty touched a high of 17282.30 and a low of 17079.63 in intraday trade.

Amongst the sectoral indices on the BSE, the IT Index was continued to decline by2.56 percent, the Metal Index declined 2.09 percent, the Realty Index  and Power Index declined 1.86 percent  and 1 percent respectively.

On the individual stock front, Bank of America Merrill Lynch panned Reliance Industries by stating that the firm could see reduced output by 24 percent for its 2Q12 results as the GRM from its Singapore operations touched USD 5.5 a barrel, a 19 month low. Kingfisher Airlines declined 5 percent to INR 9.85 a share, below its face value of INR 10 on news of the co.’s employees going on a strike for nonpayment of dues. Lupin gained 4 percent to INR 574 a share. United Phosphorous acquired a Netherlands based firm Agrichem. Tata Motors saw a 6 percent rise in vehicle sales on a y/y basis.

Commodities traded mixed during the session with WTI at USD 86.69 down 0.47% and Brent trading at USD 102.42 down 0.02%. In Geopolitical news Saudi Arabia and United Arab Emirates have opened a new pipeline bypassing the Strait of Hormuz. The new pipeline bypassing the strait to carry 6.5m barrels of oil accounting for 40 per cent of the oil that passes through the Strait of Hormuz.  Brent trading at USD 102.42 up 0.02%

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

(Bloomberg, Business Standard, Economic Times and Moneycontrol)

DAILY MARKET REPORT – 13 JULY 2012

The week ends with the markets closing flat in a listless session of trade on the back of flatter global cues. HDFC Bank‘s 1Q12 numbers rose 30 percent, but were in line with expectations, hence, it didn’t have much of an effect. LIC provided a small boost to the investors as the insurance giant on news that it would infuse a total of INR 60,000 cr in Indian equities. It should be noted that the firm previously bailed out ONGC as part of the government’s divestment programme.

The Sensex closed 18.85 points or 0.11 percent lower at 17213.70 points. Sensex touched an intraday high of 17342.88 and a low of 17182.29 in trade today. The Nifty closed 8 points lower at 5227.25 points after touching highs of 5267.15 and a low of 5216.85 points today.

On the news from the global cues, Asia closed marginally higher on China’s GDP data, which failed to give a direction to the markets. Europe, however, opened higher in trade.

Economy:

  • There also was some GDP action today with Singapore also giving out 2Q12 numbers.
  • Bond auctions in Italy saw yields decline over previous auction’s data as the investors ignored Moody’s rate cut on the country.
  • India’s trade deficit for June narrowed, on data released by the Commerce Secretary.

On the sectoral indices for the BSE index, the Midcap Index closed 0.23 percent lower; SmallCap Index declined 0.12 percent, Realty Index was down 1.58 percent, the Metal Index was lower by 1.24 percent, the Power Index slipped 0.7 percent and the IT Index was down 0.49 percent.

On the individual stock front, HDFC Bank came up with its 1Q12 numbers. R Software rose 16 percent to INR 98.15 a share on its consolidated profit rising almost twice to INR 9.58 cr for its 1Q12 results. IT Firm IGate also rose in trade as it reported a 217.5 percent rise in 1Q12 profit which came in at USD 12.7 m.

There was some news on the FII front as well. FII’s reduced their stake in ICICI Bank and Axis Bank while stake in HDFC Ltd and HDFC Bank. FII’s also divested some of their stake in Yes Bank, Indus Ind Bank and Union bank of India during the quarter.

On the currency front, the rupee closed near the 56 levels at 55.93, up 0.41 points. Commodities traded higher during the session with WTI at USD 87.18 up 1.28% and Brent trading at USD 102.06 up 0.98%.

Things to watch out for:

Inflation data (that scheduled for July 16), which will decide the Reserve Bank of India’s move on July 31 (a day of first quarter monetary policy review).

Analysts on average expect June inflation in the range of 7.5%-7.8% as against 7.55% in previous month and core inflation around 4.9%-5.5% versus 4.8% in May. Therefore they feel the RBI may not consider rate cut.

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

(Bloomberg, Business Standard, Economic Times and Moneycontrol)

BofA-ML SEES WEAK 1Q12 EARNINGS IN INDIA

Bank of America-Merrill Lynch was of the opinion that first quarter earnings of Indian firms for the Jan – March quarter would exhibit weakness leading to a correction in the markets. It states that net profit for fiscal 1Q12 period would touch 13.7 percent and 9.7 percent if SBI’s results are excluded.

Concerns on the depreciation of the rupee, slowdown in global demand and further challenges could affect the Indian economy, thereby seeing a weaker earnings period.

The firm stated that co’s which would contribute to growth would be SBI , ICICI Bank , HDFC Bank , Infosys and Tata Motors. (Moneycontrol)

JP MORGAN COULD FACE LOSSES OF USD 4.2 b IN 2Q12

According to International Strategy & Investment Group Inc, JP Morgan could face trading losses of USD 4.2 b in the second quarter 2012. It also estimates 2Q12 earnings to decline 30 percent to 65 cents a share vs its earlier estimate of 93 cents. The firm also cut its 12-month price target on JP Morgan to USD 47 a share from 52 a share previously, but maintained a ‘BUY’ rating on the firm. (Bloomberg)

HAVELLS INDIA LTD 4Q11 PROFIT AT INR 915.2 m vs prv INR 690.40 m

Havells India Ltd – Co. reported 4Q11 net profit after tax of INR 915.20 m vs INR 690.40 m a year ago. Revenues came in at INR 10488.00 m vs INR 8442.20 m a year ago.

Consolidated FY11-12 net profit after taxes and minority interest came in at INR 3699.20 m vs INR 3035.70 m a year ago. Annual revenues came in at INR 65595.50 m vs INR 56194.80 m a year ago.

Co recommended  a dividend of INR 6.50 per share. (BSE Announcements)

MARKET SUMMARY – 24 MAY 2012

The Indian markets rallied from the session lows closing in the positive territory with Sensex 30 index closing 274.20 points up at 15948.10 (1.72 percent) in days trade. It reached an intraday high of 16252.37 points and a days low of 15934.77 points in trade today. The Nifty 50 closed up 85.75 points at 4921.40 (1.77 percent). It touched an intraday high of 4931.90 points and surfaced a low of 4830.15 points in today’s trade.

Indices recovered from the earlier slump in the day helped by risk appetite returning back to markets. The news of the fuel hike (petrol hike by INR 7.50 a litre) saw a rally in the stocks of oil marketing co.’s.  According to sources, the govt. would also consider a rollback of the hike to around INR 3 – 4 a litre of fuel rather than the existing hike. Uttarakhand and Kerala, India, have been the first two states to announce a reduction in tax on fuels after the govt. hiked rates. Fuel in INR 1.63 cheaper in Kerala and INR 1.87 a litre in Uttarakhand.

On the currency front, the Indian Rupee retreated from a session low of 56.40, finally hovering around 55.70 mark against the dollar.

On the individual stock front top gainers included ONGC, HDFC , Bharti Airtel, Jindal Steel, Bank of Baroda and ICICI Bank. At the bottom end stocks included JP Associates, CAIRN, Maruti Suzuki, TCS and BHEL.

On the earnings front, Reliance Power Ltd posted 4Q11 results which saw a net profit of INR 307.717 m vs INR 627.227 m a year ago.

Finally commodities inched higher with WTI hovering at USD 90.73 down +0.92% and Brent trading at USD 106.24 down +0.64%.

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

(Moneycontrol, Economic Times)

KOTAK MAHINDRA BANK 4Q11 PROFIT AT INR 2969.259 cr vs prv INR 2487.013 cr

Kotak Mahindra Bank Ltd: 4Q11 earnings for period ended 31 March 2012 came in at INR 2969.259 m vs INR 2487.013 m a year ago. Total Interest Income for 4Q11 came in at INR 19990.581 m vs INR 14455.453 m a year ago.

FY11-12 earnings came in at INR 10850.530 m vs INR 8181.821 m a year ago. Total Income came in at INR 71575.820 m vs INR 49702.869 m a year ago. The company declared a dividend of INR 0.60 per share. (BSE Announcements)

MARICO 4Q11 PROFIT AT INR 877.084 cr vs prv INR 1318.057 cr

Marico – Co. reported 4Q11-12 net profit at INR 877.084 vs. previous INR 1318.057. Total income at INR INR 7049.282m vs. previous INR 6274.411m.

For FY11-12 co. reported net profit at INR 3365.843m vs. previous INR 3153.326m. Total income at INR 30219.495m vs. previous INR 23720.420m. (Money Control)