EQUITY UPDATE: 18 AUGUST 2012

INDIA

India’s PMEAC, an advisory body to the Government, revised growth to 6.7 percent from the projected 7.5 – 8 percent for FY2012-13. Inflation is to rise from forecasted 5 – 6 percent to 6.5 – 7.0 percent on higher food prices. Current account deficit could rise to USD 67.1 b, around 3.6 percent of GDP. Trade deficit could touch USD 181.1 b, i.e. around 9.7 percent of GDP. The PMEAC recommends that a price rise in diesel could mitigate higher expenditure on subsidies. The body also warned that India’s own credit rating could get downgraded if measures arent undertaken to prop up the economy. (Economic Times)

FII’s made gross purchases of INR 2,169.11cr and gross sales totalling INR 1,860.89cr. DII’s made gross purchases of INR 1,044.55cr and gross sales of INR 1004.36cr. (Business Standard)

According to India’s Coal Minister Sriprakash Jaiswal, the Comptroller and Auditor General (CAG) used an incorrect method of calculating the prices of the coal blocks under the scanner. He insisted that although the allocation was done on a transparent basis, private co.’s benefited from the auction as delays in the bidding process gave undue advantage to them. (Economic Times)

Ranbaxy Labs – The co. launched an authorized generic version of Takeda’s diabetes medicine in the U.S to be sold under the brand Actos. The co. would have a 180 marketing license with Mylan and Teva. (Economic Times)

Reliance Capital – Co. sold a 26 percent stake in its asset management and mutual fund divisions to Nippon Life for INR 1450 cr. (Economic Times)

Union Bank – PSU bank is expected to obtain a loan of around INR 950 – 1000 cr from the Indian Government. (Economic Times)

BHEL – Co. plans to construct a manufacturing facility in Maharashtra, India for about INR 159 cr. The plant is expected to manufacture tubular products to the western region of India. (Business Standard)

GMR Infra – Co.’s shares lost 4 per cent in intraday trade, as a CAG report highlighted that the Civil Aviation Ministry violated bid conditions, benefiting co. led DIAL by INR 3,415cr. (Economic Times/PTI)

Airlines Co.’s – According to the data released by the civil aviation ministry, domestic air passenger traffic fell to 45.37 lac in July from 51.08 lac in June. January – July domestic passenger at 354.52 lacs from 348.47 lacs in the January – July 2011. On a standalone basis IndiGo had the largest market share of 27 per cent, Jet Airways at 19.4 per cent, Air India at 18.2 per cent, SpiceJet at 17.8 per cent, JetLite at 7.2 per cent, Go Air at 7 per cent and Kingfisher Airlines at 3.4 per cent. (IANS/Yahoo)

Sail – Co. plans to raise at least INR 2.5b in funds through issuance of 5 to 10 year bonds, baring a coupon of 9.25 per cent. (Economic Times/Reuters)

INDIAN EARNINGS

Kamdhenu Ispat – Co. reported 1Q12-13 net profit at INR 95.24 lacs from INR 85 lacs in 1Q11-12. Turnover at INR 133.42cr from previous INR 113.29cr. (The Hindu Business Line)

EUROPE

According to the president of German BdB banking association, the ECB should supervise all banks across the euro zone. In related news German news paper Handelblatt reported that the ECB is to supervise all euro zones’ major banks, citing people familiar with the matter at the European Commission. (Fox Business)

According to a Spanish government spokeswoman, Spain to soon request for the first payment from the EUR 100b emergency eurozone line agreed in June. (Economic Times/AFP)

GSK – Co.’s clinical trial for its asthma drug ‘mepolizumab’ cut asthma attacks to nearly half, in people with severe asthma. (The Telegraph UK)

Qatar’s sovereign wealth fund is to purchase a 20 percent stake in BAA for GBP 900 m from Spanish infra co. Ferrovial. (Financial Times)

Aviva – Insurance co. has been approached by several US based PE firms as well as Guggenheim Partners, which have expressed interest in acquiring U.S unit of the firm. S&P also downgraded Aviva to its lowest level since 2001 on risks and costs to the co. The co. came down one notch to A -. (Financial Times)

NORTH AMERICA

The Thomson Reuters/University of Michigan Consumer confidence index rose to 73.6 in August vs 72.3 in July vs expectations of 72.2, suggesting that household spending could rise in the coming quarter. Rising payrolls, increasing retail sales show that consumers have gradually increased spending to set the tone for the third quarter. (Bloomberg)

The Conference Board’s measure of economic outlook for the next three to six months rose 0.4 percent in July vs a revised -0.4 percent in June. Factors such as an improving housing market and lower hirings contributed to the data. There is optimism that the consumer spending activity would increase along the coming few months. (Bloomberg)

 

 

 

 

 

DAILY MARKET REPORT – 13 AUGUST 2012

Increased buying in large caps such as L&T, SBI, Reliance and HDFC saw buying momentum pushing markets to close higher in trade today. The rangebound trades for the last two weeks sees the market await some kind of a trigger to give it direction in the coming periods. The Sensex closed 75.71 points higher to close at 17633.45 points, while the Nifty closed 27.50 points higher at 5347.90 points.

On the global market scenario, Asia ended lower, but on a marginal basis on concerns of a slowing global economy. Japan reported lower than expected at 1.4 percent vs expectations of 2.7 percent growth. Sure to slow down hopes of a recovery. On the European markets, Greece’s lower GDP numbers did not bother investors, as they pared losses to trade marginally higher.

On the individual stock front, Sterlite rose 2.66 percent, ONGC saw higher volumes of profit booking to cut its gains of 3.5 percent to 0.5 percent. KingFisher airlines gained 20 percent hitting an upper circuit even though it reported lower earnings. Possible reasons could be that the stock was sold short all the while and markets participants do not expect the rally to hold further. Maruti gained on expectations of the co. restarting operations at its Manesar plant.

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

(Moneycontrol and Economic Times)

WEEKEND EQUITY UPDATE: 4 AUGUST 2012 TO 5 AUGUST 2012

INDIA

FII’s investing through the Mauritius route has exited their holdings in about 24 Indian companies in FY12 on a YTD basis. Co.’s such as Yes Bank, Axis Bank, Bajaj Hindustan all saw selling pressure from the FII’s who have exited their positions from these companies. The total value of the sale of shares is about INR 3000 cr. (NDTV Profit)

According to the Centre for Monitoring Indian Economy (CMIE), an economic research organization, profits of Indian firms are expected to rise by around 25 percent in the FY13 period on lower commodity prices and stable interest rates. FY12 saw profits decline by 0.6 percent. The organization also stated that firms would have incorporated the impact of the fluctuation in the Rupee as well as compared to the previous fiscal. (NDTV Profit)

Indian foreign exchange reserves increased by USD 1.3b to USD 288b over the week ended 27 July. Foreign currency assets at USD 256b, gold reserves 25.7b, drawing at USD 4.3b and reserve position at the IMF at USD 2.1b. (Business Standard)

The top eight companies on the Sensex saw their market capitalization rise by INR 35,882 cr for week ended 3 August 2012. NTPC gained the most by adding INR 10,926 cr with Reliance Industries following the firm. SBI, Infosys, ONGC also rose but Coal India and Bharti Airtel saw a decline in their values. (Economic Times)

Coal India Ltd – Co. has entered into a fuel supply agreement with 29 power plants in India to supply these firms with fuels for power generation, based on a directive from the Indian Government. The co. will also import around 20 m tonnes of coal to meet the supply shortage gap. (Economic Times)

Jindal Steel and Power – Co. is in advanced talks to plan an investment of INR 100,000 cr to expand output at its plants in Raigarh and construct new plants in Odisha and Jharkhand in India. The total expected output by 2020 is about 20 m tonnes per annum, as stated by Chairman Navin Jindal. (Economic Times)

Emami – FMCG firm has voiced concerns that rising costs of raw materials and a higher inflation could affect the firm in FY12-13 period. However, the co. plans to implement certain cost efficient measures and strengthen its distributor network to overcome these challenges. (Economic Times)

NTPC – India’s power producer would conduct capital expenditures of INR 138,000 cr on various power projects to increase its power output to 27,000 megawatts. A total of INR 95,965 cr would be funded from issuing debt securities. (Economic Times)

Maruti Suzuki – According to Haryana Chief Minister Bupinder Singh Hooda, expected co.’s Manesar plant to resume production shortly. However he did not provide a time-line for the plant to resume its activities. (Financial Express)

Jet Airways – FII holdings in co. increased from 6.70 per cent to 7.12 per cent during the 1Q12-13. (Economic Times/PTI)

Kingfisher Airlines – FII holdings in co. increased from 0.34 per cent to 0.98 per cent during the 1Q12-13. In others news, Airport Authority of India (AAI) has refused aircraft lessors to take back their aircrafts leased to co., as co. owes INR 300cr to AAI.  (Economic Times/PTI/The Hindu Business Line))

SpiceJet – FII holdings in co. increased from 2.61 per cent to 3.59 per cent during the 1Q12-13. (Economic Times/PTI)

EUROPE

According to Italian Prime Minister Mario Monti, the Italian Government did not require German cash to recover from its current situation. (Reuters)

The Spanish finance minister Luis de Guindos, the Spain had covered 70 per cent of its 2012 financing need and will wait for clearer guidelines from ECB, before requesting for aid. (FoxBusiness DowJones Newswire)

Yields on Spanish two-year notes declined 1.35 percent to 3.96 percent and 10 yr bonds fell below 7 percent on speculative news of the ECB buying short-term bonds to calm the bond markets. Spain’s bonds returned -6.3 percent while German debt provided returns of 4.5 percent and Italy with 6.5 percent. (Bloomberg)

According to the inspectors from IMF, the European Commission and the European Central Bank said that, Greece had made some progress in finding budget cuts needed to continue its bailout programme. However the international inspectors said that, not all work had been done and inspectors will return early September for a final verdict. Greece has a EUR 3.2b bond maturing in August. (The Telegraph UK)

Standard and Poor’s downgraded Slovenia’s long term credit rating to ‘A’ from ‘A+’; short term rating affirmed at ‘A-1’. Outlook: negative. (Economic Times/AFP)

Marks & Spencer – According to an Sunday Times reports, Bank of America Merrill Lynch have been assessing possibilities of providing debt financing for a speculative bid for co. Co. is been viewed as a GBP 6b bid target, as shares in co. have tumbled 50 per cent since 2007. (FoxBusiness/Sunday Times)

NORTH AMERICA

U.S Trade Deficit for June is expected to have lowered as the nation imported less oil  and slower growth reduced demand for U.S made goods abroad. Data due on 9 August forecasts deficit to come in at USD 47.5 b vs USD 48.7 b in May. Lower outlay on imports are due to lower prices of crude oil and lower exports due to slowing economies in Asia and Europe exhibiting lower demand for U.S made goods. (Bloomberg)

Boeing Co. – Airplane manufacturer secured orders to conduct the sale of 94 single-aisle 737 airplanes to Asian airline firms including 54 jet deal with Singapore Airlines Ltd. The deals are expected to touch USD 8.4 b. (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)

WEEKEND EQUITY UPDATE – 14 JULY 2012 TO 15 JULY 2012

ASIA

According to Chinese Premier Wen Jiabao the current economic growth remained in the expected target range set earlier this year and saw the effectiveness of the stabilization policies. However he added that the economy had not formed a stable recovery and economic difficulties may continue for some time. He stated that the government will do its utmost to generate employment and support industries through tax breaks and capital provision which face a slowdown in exports. China currently faced slower GDP expansion and its woes were compounded with a slowdown in China’s traditional markets such as US and Europe.  (Economic Times/AP)

China plans to reduce taxes on the profits of overseas co.’s operating in China by upto 50 percent to encourage more investment into the country. The government would also include dividends paid by Chinese Co.’s to overseas shareholders. (Financial Times)

INDIA

The cumulative market capitalization of top five co.’s in the Sensex declined by INR 26,287 cr for week ended 13 July on earnings and other economic data. Infosys, which came out with dismal numbers, led the decline by INR 12,406 cr. Bharti Airtel, SBI, Reliance Industries and NTPC also saw their market values decline. TCS, ONGC, Coal Indian, HDFC Bank and ITC saw gains in their market share for the similar period. (Economic Times)

According to ICICI Securities June inflation is likely to be at 7.82 per cent versus 7.55 per cent in May, a unlikely scenario for a rate cut. (Economic Times/PTI)

Mining/Metals co.’s – Indian governments signs a bilateral security co-operation agreement with Mozambique as part of the effort to strengthen ties. (Economic Times/PTI)

According to the Indian Meteorological Department, the impact of a lower than expected monsoon could have a maximum impact of 0.25 percent on the country’s GDP.  (Business Standard)

ONGC – Co. is looking to invite bidders for sale of gas from its Gamij field in Gujarat, India through an e-bidding process. The oil field has an average output of 15,000 standard cubic meters per day (SCMD) on the basis of availability for a five year period. ONGC expects the field to generate revenues of INR 5.5 cr on an annual basis. (Economic Times)

Nalco – Co. is in talks to acquire an Indonesia-based firm Ashan Aluminum for around INR 8000 cr. Nalco primarily would gain from Ashan’s plant which has a capacity of 2.1 lakh tonnes. Ashan, which is owned by a Japanese consortium, would see its operating license expire at the end of 2013, which is portion Nalco would acquire. The rest of the stake in the co. is held by the Indonesian government. (Economic Times)

DLF – Co. plans to reduce its INR 23,000cr debt to INR 17,000cr at the end of the fiscal by the sale of non-core assets. (The Hindu Business Line)

SAIL/Coal India/RINL/NMDC/NTPC – ICVL is on a lookout to acquire coal mines in Australia and New Zealand as coking coal prices drop and valuation become favourable, according to management. (Business Standard/PTI)

Reliance Communications – Co. was downgraded by ICRA from ‘stable’ to ‘negative’, citing elevated levels of debt at INR 37,000cr at the end of last year. (The Hindu Business Line)

Essar Oil – Co. to invest INR 2000cr at its coal-bed methane facility in Ranigunj; West Bengal. (Business Standard)

Kingfisher Airlines – A sections of co.’s pilot are contemplating to drag the management to the labout court, according to sources. (Economic Times/PTI)

EUROPE

The German Chancellor Angela Merkel on Sunday said that she was confident that a majority of German lawmakers would back the Spanish banking aid pack of up to EUR 100b. In regards to Greece chancellor said that she would wait for the report from ‘troika’ before deciding on further steps. As Greece is seeking to renegotiate the terms of its EUR 130b rescue fund. (Reuters)

Italian Finance Minister Vittorio Grilli stated that Italy plans to reduce its public debt by 20 percent until FY2018. The nation would plan to sell public assets for about EUR 20 b (USD 24.5 b) on an annual basis for the next five years. The minister also stated that GDP would contract less than 2 percent in FY2012 vs the government’s forecast of a decline of 1.2 percent. (Bloomberg)

According to a official documents Spanish government will slash EUR 56.4b from the public deficit in the next two and a half years. The remaining EUR 8.6b shortfall will be filled by new tax measures. (FirstPost/Reuters)

GlaxoSmithKline – Co. in talks with Human Genome Sciences to acquire it for around USD 2.6b, according to sources. (Economic Times/Reuters)

BHP Billiton – Co. to put up its iron ore project in Guinea for sale, as the co. looks to dispose off non-core assets as global demand for commodities flattens. (Reuters)

Deutsche Bank – Co. has approached the ECB and Swiss authorities in order to co-operate in the Libor fixing investigation in return of leniency. (Fox Business – Dow Jones Newswires)

British Petroleum – Co. nears a USD 15b settlement deal over the Gulf oil spill. (Fox Business – Dow Jones Newswires)

NORTH AMERICA

US Retail Sales are projected to have increased by 0.2 percent in June vs -0.2 percent in May following a pickup in demand for automobiles offsetting expenditure on other goods. Median forecasts show optimism in spending by consumers increased with data to be released today. (Bloomberg)

Research in Motion – Co. has been ordered by Canadian jury to pay USD 147.2m in damages for patent infringement.  (The Financial Express)

Facebook – According to analysts co. is expected to post a net loss of USD 350.6m versus USD 137m profit in 1Q12. Co. reports its earnings on Thursday. (The Financial Express)

GLOBAL

According to a report by NPD Display Search, a research firm, shipments of LCD televisions over the globe would rise at a slower pace as compared to the previous year. Shipments are forecast to fall 1.4 percent for the 2012 period to 245 m units. Lower discretionary spending by consumers in Europe and Asia, including India, contributed to the lower shipments. Prices of LCD’s would also decline 4 percent in 2012 vs 6 percent in 2011. (Economic Times)

EQUITY UPDATE – 13 JULY 2012

ASIA

China’s bond markets saw a 60 percent rise in volume for 1HY12 period on a y/y basis. With banks being the primary source of capital in China, co.’s have now shunned the trend and have taken to the corporate bond market for funds. Total outstanding bank loans are at a staggering 123 percent of China’s GDP while bonds stood at a low 11 percent. Volume of bond issuance by non-financial firms stood at RMB 853 b (USD 134 b) vs RMB 530 b a year ago. (Financial Times)

Dentsu Inc – Japanese media firm is to acquire Aegis Group form GBP 3.2 b in an all cash offer. The co. will pay 240 pence a share, a 48 percent premium to previous session’s closing price of Aegis, which saw a 45.5 percent rise on the news. (Financial Times)

Sany Heavy Industry Co. – Excavator manufacturer lowered its FY12 unit-sales forecast on slowing Chinese economy and curbs on its property markets will dampen demand. The co. stated that sales of excavators could increase 10 percent in 2012 vs its previous target of 40 percent. Demand would pick up in the 1Q13 period according to co.’s Vice Chairman Xiang Wenbo. (Bloomberg)

Chinese banks upped their activity in issuing fresh loans to RMB 919 b (USD 144 b) in June 2012, which exceeded forecasts of RMB 880 b. Forex reserves declined to USD 3.24 t, as per data by the People’s Bank of China. (Reuters)

IHH – Malaysian healthcare co. saw its initial public offering being oversubscribed 132x from international and domestic institutional investors. The stock, which is to be listed simultaneously on the Singapore and Malaysian stock exchanges, will see its share price set at the upper range of the price band at MYR 2.80 a share and SGD 1.13 in Singapore. (Financial Times)

INDIA

According to HDFC Banks chief economists Abheek Barua, RBI was unlikely to infuse liquidity or cut policy rate in its policy meeting, citing high inflation. Similar expectations were registered by Deepak Joshi the chief economist of Crisil. (MoneyControl)

Infosys – According to co.’s CFO, co is on a serious lookout for acquisitions. (Economic Times/PTI)

Maruti Suzuki – HSBC Global Investments Funds stake in co. dips to 4.99 per cent vs. previous 5.06 per cent. (Financial Express)

Welspun Corp Ltd – Co. plans to raise INR 1000cr through the issuance of non-convertible debentures.  Co. to use funds to pay back debt. (The Hindu Business Line)

Kingfisher Airlines – LKP Merchant Financing offloaded 1cr shares in co. worth more than INR 10cr through an open market transaction. (Financial Express)

INDIAN EARNINGS

Tata Consultancy Services Ltd – Co. reported 1Q12-13 net profit at INR 27975.90m versus 1Q11-12 net profit of INR 20624.30m. Total income in 1Q12-13 at INR 115799.10m versus INR 86968.10m in 1Q11-12.

On consolidated basis:

Group reported 1Q12-13 net profit at INR 33176.80m versus 1Q11-12 net profit of INR 24147.60m. Total income in 1Q12-13 at INR 150549.70m versus INR 110911.60m in 1Q11-12. (BSE Filing)

Cera Sanitaryware Ltd – Co. reported 1Q12-13 net profit at INR 9.24cr vs. previous 1Q11-12 net profit at INR 6.90cr. Sales at INR 90.51cr vs. previous INR 64.64cr. (The Hindu Business Line)

Magma Fincorp Ltd – Co. reported net profit of INR 33cr for the quarter ended 30 June 2012 vs. net profit of INR 17cr during the same period last year. (The Hindu Business Line)

Geojit BNP Paribas – Co. reported 1Q net profit at INR 8.5cr vs. previous 1Q11-12 at INR 4.3cr. Consolidated revenue at INR 59cr vs. previous INR 62cr. (The Hindu Business Line)

EUROPE

According to European Central bank’s President Mario Draghi, inflation is slowing faster than expected in the eurozone and than bank’s lending activities would improve towards the end of FY12. He added that the austerity and fiscal cuts undertaken by Spain were significant in proportion and could be effective in meeting its deficit reduction target. (Reuters)

According to ECB policymaker Klass Knot, ECB could cut main interest rate below 0.75 per cent, if economic conditions deteriorate further. (Financial Times Deutschland/Reuters/Economic Times)

Greek jobless rate for April at 22.5 per cent in April versus a revised 22 per cent in March versus 16.2 per cent in April last year. (Reuters)

HSBC – Co. could face USD 1b in fines, as US authorities’ investigate co. for money laundering. Co.’s management to testify before the Senate panel on July 17. (Yahoo/Reuters)

PSA Peugeot Citroen – Co. plans to shut down its plant near Paris and cut about 6,500 jobs in prder to rejig its operations. The co. warned that the economic conditions would see it face a EUR 700 m loss for the 1HY12 period. Peugeot had fixed costs at about EUR 200 m a month, excluding non-recurring items such as asset disposals. The co. expects to generate positive operating cash flow to break-even by the end of 2014. (Financial Times)

Vodafone plc – Co. will acquire TelstraClear, a New Zealand based subsidiary of Telstra Corp for GBP 430 m. (Financial Times)

EADS – Airbus won orders and commitments for a total of 115 aircraft worth USD 16.9b at this week’s Farnborough International air Show. (WSJ)

SAP AG – Business software manufacturer and developer SAP reported 2Q12 results which exceeded market estimates on higher software sales. The co.’s sales rose 19 percent to EUR 1.06 b, touching the higher end of its previously made forecast of 15-20 percent growth. Estimates came in at EUR 977 m in sales of software. Operating profit rose 8 percent to EUR 1.2 b while net sales rose to EUR 3.9 b. Annual results of the firm are scheduled for 24 July. (Financial Times)

NORTH AMERICA

U.S Initial Jobless benefits claims applicants declined by 26,000 for week ended 7 July to touch 350,000, the lowest since March 2008. Data came in better than expected with forecasts coming at 372,000 claims. News of automakers Chrysler and Nissan keeping factories open to meet increasing vehicle demand could have affected the claims result. Generally, auto manufacturers shut their plants routinely during this period for periodic maintenance. Claimants who continue to avail benefits declined by 14,000 for week ended 30 June to 3.3 m. The unemployment rate remained at 8.2 percent. (Bloomberg)

A US Labor Department data showed that prices of goods imported in the US declined 2.7 percent vs 1.2 percent decline in May. Prices excl. fuels also declined 0.3 percent. (Bloomberg)

US Mortgage rates declined to record lows for a month accompanied by a slight improvement in the US housing market. The rate on the 30-yr fixed mortgage declined to 3.56 percent while the 15 yr rate declined to 2.86 percent. (Bloomberg)

According to strategists at BOFA-ML, lowered the earning per share on S&P 500 components to USD 102 for 2012 versus previously USD 103.50 and 2013 EPS at USD 109 versus previously USD 110.50. Growth forecasted at 4 per cent in 2012 and 7 per cent 2013. In an separate Thomson Reuters data showed Wall Street EPS growth estimate at 5.9 per cent in 2012 and 12.3 per cent in 2013. (Reuters)

United Continental Holdings Inc – Co. is to purchase a felt of 100 Boeing 737aircrafts and 50 737-900 ER planes from Boeing in a deal worth INR 14.7 b. (Reuters)

Groupon Inc – Shares of the online coupon co. declined to levels below its initial public offering price as investors were concerned over its profitability. The stock price declined 5.7 percent to USD 7.33 a share in early trade, touching lows of USD 7.25 a share. Concerns on the co. facing a tougher environment as rivals Google, Amazon and Yelp Inc ramp up operations saw the share decline in trade today. (Bloomberg)

COMMODITIES

According to an IEA report a global economic slowdown could put a lid on oil prices; however a supply surprise could push oil higher. IEA further added that a reduction in production by OPEC countries below the 30 bpd previously agreed mark could have a dramatic impact on the markets. Global oil demand growth steady at 800,000 bpd for the current year and to increase to 1 m bpd in 2013, the report said. (Business Standard/Reuters)

DAILY MARKET REPORT – 12 JULY 2012

The Indices closed lower on account of Infy’s results, its disappointing earnings guidance, global cues which offset the better than expected May IIP numbers. With TCS’s results awaited today, investors dumped their shares in trade today.  The Sensex 30 index closed lower by 256.59 points at 17232.55 points (-1.47%). The Nifty 50 closed lower at 5235.25, down 71.05 points (-1.34%) in trade today.

On the global scenario, we saw rate setters events at Bank of Japan and Bank of Korea in early trade. BoJ kept rates and asset purchasing programmes unchanged.  Meanwhile, Bank of Korea, lowered interest rates to stimulate the economy which showed early signs of slowdown. China’s 2Q12 GDP forecast, due Friday, saw analysts forecast a lower number from their previous one, showing that a slowdown was evident in the second-largest economy in the world. Deficient rainfall still remains a matter of concern, as Kerala saw a 30 percent shortfall. Its hydel power projects could get affected if such a scenario continues.

For the global markets today, Asia ended lower on worries about economic recovery over the world. Europe also has opened lower in trade today with an eye on the stimulus package, if proposed, by the United States.

Coming back to the Indian markets, on the sectoral indices front on the BSE, the MidcapIndex closed 0.67 percent lower in trade today while the SmallCap Index ended 0.69 percent lower. The IT Index dropped 5.31 percent, mainly on Infosys and TCS’s earnings related news, the Teck Index also declined in tandem with the IT Index by 4.62 percent. The Consumer Durable Index was down 2.02 percent in trade today.

On the individual stock front, SBI, Infosys and TCS were top volume drivers. BPCL gained 1 percent and Videocon gained 0.5 percent as their joint venture co. Brasil Petroleo Ltda announced the discovery of an oil reserve off the Brazilian coast. Airline shares rose in trade today on news of foreign direct investments which could be permitted after the Presidential elections in this month. SpiceJet and Kingfisher Airlines gained 1.9 percent and 3.4 percent respectively.SAIL saw its divestment plans get postponed after the CCEA deferred its decision. Shriram City Union rose 10 percent to INR 747 on news that one of its promoters will purchase 17.9 m shares at INR 803 a share.

For Carrefour, the French retailer, the co.’s operating results and sales for 2Q12 period declined below expectations on austerity measures affecting consumer’s discretionary spending patterns and hampering their sales.

The Indian Rupee gained 0.23 points to close at 55.62 to the US Dollar.

Commodities traded lower during the session with WTI at USD 84.96 down 0.99% and Brent trading at USD 98.86 down 1.37%. During the day a Platt’s survey showed that OPEC crude oil output (June) declined to 31.72 m versus a previous of 31.75 m barrel.

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

(Bloomberg, Business Standard, Economic Times and Moneycontrol)

DAILY MARKET REPORT – 10 JULY 2012

The Sensex and Nifty closed higher in days trade today led by L&T and ITC and banking and auto sectors. The Sensex closed 226.37 points or 1.30 percent higher at 17618.35 points in trade. The Nifty closed higher by 1.33 percent at 5345.35, ending trade 70.20 points higher. News on better than expected UK data on manufacturing and the resolution of the EU leaders to provide Spain with funding spurred markets today.

BofA-Merrill Lynch issued a warning to co’s coming out with first quarter earnings would report a weaker number. OECD added to woes by stating in its report that unemployment would still remain higher until end of 2013.

On the sectoral indices front for the BSE index, the Midcap index closed 1.1 percent higher while the Smallcap Index rose 0.79 percent. Capital Goods Index advanced 1.82 percent, the Banking Index advanced 1.52 percent and the Auto Index was higher 1.50 percent.

Global cues set forth with Asia closing lower in days trade on lower import data by China. India also started lower but alongwith Europe, it rose on the favourable news emanating from the UK and the EU stability fund.

On the individual stock front, RCom rose 7 percent on higher trading volumes. Companies of the Anil Dhirubhai Ambani Group (ADAG) rose in trade on investors response to the IPO of its undersea cable business.  OnMobile gained 8 percent on news of its promoter, CEO and MD Arvind rao, resigning from the co. Maruti Suzuki gained in trade as its car sales rose 8.29 percent in June. For Kingfisher Airlines, grace period from its lenders would soon run out of time as SBI led calls to get the co. to infuse equity or cash into the co.

On the earnings front, Indus Ind Bank’s 1Q12 results came in line with expectations.

The Rupee gained 0.47 paise to close at 55.87 to the dollar.

Commodities inched lower during the session with WTI at USD 85.51 down 0.53% and Brent trading at USD 99.58 down 0.74%. On the weather front, hurricane Emilia in the Eastern Pacific has reached category three status.

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(Business Standard, Economic Times and Moneycontrol)

SBI ASKS MALLYA TO INFUSE FRESH EQUITY IN THE FIRM

State Bank of India’s Chairman Pratip Chaudhuri stated that Kingfisher Airlines would have to infuse fresh equity in the co. in order to enable a quick recovery of its USD 1.4 b in debt obligations of the co.

Lenders consortium, led by SBI are concerned over the viability of Kingfisher Airlines and has also asked its Chairman Vijay Mallya to infuse capital from the liquor business to stabilize its operations. (Moneycontrol)