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.

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(Bloomberg, 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)

DAILY MARKET REPORT – 09 JULY 2012

The Indian markets closed on a lower note to start the week on global cues and lower data from the US and inflation cooling in China. The Sensex closed 129.14 points or 0.74 percent lower at 17391.98 today. Sensex touched an intraday highs of 17485.79 and a low of 17343.55 points in trade. The Nifty closed 41.80 points or 0.79 percent lower at 5275.15 points. It touched an intraday high of 5300.60 and a low of 5257.75 points.

On the global scenario, Asian indices closed on China’s inflation and US data (Friday) which fuelled concerns of growth. Europe has also opened lower in trade today with investors keeping an eye on the earnings season.

On the sectoral indices front, BSE Midcap Index declined 1.30 percent and the BSE Smallcap Index fell 1.13 percent lower today.  The Auto Index also fell 1.3 percent, the Metal Index moved 1.7 percent lower, the Power Index was 1.6 percent down and the BSE Capital Goods Index was 1.3 percent lower in trade today.

On the currency front, the Indian rupee hit an intraday low of 56.06 to the Dollar, but got recovered to 55.84 at close.

On a report by the Intelligence Bureau, there were suggestions that Ketan Parekh (KP) and his associates falsely drove up prices of certain shares  on higher volumes. The companies which were targeted were Dewan Housing (which was down 14.5%), Goenka Diamond (plunged 20%), Orchid Chemical (down 5%), IVRCL (down 6.7%), Pantaloon (down 3.5%), TBZ (down 6%) and GMR Infra (tanked 5%).

Shares of IGL rose 5.5 percent on hiking CNG prices. SKS Microfinance also rose 12 percent to INR 94.95 for the third consecutive trading session on higher volumes of 9.78 m shares as RBI Governor D. Subbarao hinted at a possibility in relaxation on norms for microfinance firms.Bajaj Auto declined 3 percent as it cut prices of its products in Sri Lanka in the range of  5 to 14 percent to boost sales as the country hiked its excise duty.

Commodities inched higher during the session with WTI at USD 84.85 up 0.47% and Brent trading at USD 98.64 up 0.46%. On the weather front, slow moving thunderstorms are expected to erupt from Virginia to South Carolina.

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(Business Standard, Economic Times and Moneycontrol)

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 – 02 JULY 2012

The Indian indices began the week by closing flat in today’s trading session. The Sensex closed 31 points (-0.18%) lower at 17398.98 points. It touched a high of 17486.57 and a low of 17363.04 in the trade session today. The Nifty 50 closed lower by 0.3 points (-0.01%) at 5278.60. Nifty touched a high of 5302.15 and a low of 5263.35 in intraday trade today. Profit booking was seen at a major resistance level of 5300, just near the day’s highs.

Friday’s surge in the global markets was subdued today on concerns of the progress and success of the eurozone debt crisis plans. Asia edged marginally higher in trade with Hang Seng gaining the most by 2 percent, while the other markets closed flat, either higher or marginally lower. Europe opened higher by 0.5 – 1.0 percent in early afternoon trade today.

On the stock front, Jindal Steel declined 2.5 percent on a govt. order to halt work at its mine in Odisha. ITC also declined on the UP government raising taxes on cigarettes. Tata Motors and Hero Motocorp also declined on account of lower sales in May.

On the Sector-wise index data, the BSE FMCG Index declined 2.48 percent, the Auto Index was 0.62 percent down, the IT Index declined 0.24 percent. BSE Realty Index was up 2.32 percent, the BSE Capital Goods Index was 0.70 percent higher and the Power Index gained 0.67 percent.

India’s and various other regions PMI data came out in trade without much of a significant impact, considering the close today. Except for EU PMI data, which declined, the others incl India, UK and Germany saw marginal increases in their PMI data.

India’s trade deficit for May came in at USD 16.1 b. The INR currency declined to 55.90/91 on lower volumes.

Commodities moved lower with WTI at USD 83.80 down 1.37% and Brent trading at USD 96.41 down 1.42%. On the weather front, thunderstorms and severe weather conditions are expected over the Upper Midwest and around the Carolina region.

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(Business Standard, Economic Times and Moneycontrol)

DAILY MARKET REPORT – 22 JUNE 2012

The Indian equity indices closed lower for the week on account of a global sell off and falling rupee. The Sensex closed at 16972.51 points, down 60.05 points (-0.35%). It touched an intraday high of 17016.06 and a low of 16807.80 points  in trade today.

The Nifty 50 closed at 5146.05 points, down 18.5 points (-0.37%). It touched an intraday high of 5159.80 and a low of 5094 points in intraday trade today.

The fall of the Indian Rupee to touch lows of 57.30 to close at 57.09 to the dollar. The RBI has urged oil marketing companies to purchase half its dollars from PSU banks to keep the rate under control. Cement stocks declined again in trade on CCI’s decision to impose fines on account of cartelization.

Global markets closed lower on account of lower growth and the fear of further downgrades. Europe also opened lower on similar issues plaguing the markets.

Commodities moved up with WTI at USD 78.70 up 0.64% and Brent trading at USD 90.01 up 0.87%. On the weather front, tropical disturbance is developing near Yucatan; Mexico.

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(Moneycontrol and Bloomberg)

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.

 

 

 

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