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 – 06 AUGUST 2012

The markets rose today on the back of better than expected U.S Payrolls data and emerging solutions for the Euro crisis. Global cues too, are in the positive territory, with Asia setting the pace, followed by Europe. News of implementation of reforms during the monsoon session of the parliament also buoyed sentiments. In all, it was a good start to the week on the back of Friday’s data. India’s FM P. Chidambaram came up with plans to attract further investments in the country, policies to tackle inflation and promote growth. This could just be the precursor to the monsoon session of the parliament with investments expected to rise to 38.5 percent of the nation’s GDP.

The Nifty closed 5282.55 points, up 66.85 points or 1.28 percent on highs of 5293.20 and lows of 5260.85 in trade today.  The Sensex closed 215.03 points or 1.25 percent higher at 17412.96 points. It touched highs of 17451.53 points and low of 17313.05 in trade.

On the sub-indices news on the BSE, the Midcap Index inched 0.44 percent higher and the Smallcap Index rose 0.77 percent. The Oil & Gas Index gained 2.99 percent, mainly on news that benefited Reliance Industries, the Auto Index rose 1.69 percent and the Bankex advanced 1.34 percent. However, the FMCG Index fell 0.49 per cent and the BSE IT Index declined 0.25 per cent.

On the individual stocks, Reliance Industries rose almost 5.7 percent in trade as WTI crude saw a sharp rise on US payroll data. Developments between the oil ministry and the co. on investments in the KG-D6 basin to spur output also was favourable for the stock. Banks such as HDFC Bank and ICICI Bank also held onto their gains on hopes of rising investment in the country.

The Rupee hovered at 55.32, down 43 paise to the Dollar.

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

(Economic Times, Bloomberg ,Business Standard)