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)

DAILY MARKET REPORT – 03 AUGUST 2012

The Indian markets recovered from the session lows, as a slew of better than expected European data help lift market sentiments. Sensex 30 index closed 26.43 points down at 17197.93 (-0.15%), while the Nifty 50 closed down 12.05 points at 5215.70 (-0.23%). The markets dipped lower in the morning session, as the ECB dashed hopes of any immediate action with regards to easing the Spanish and Italian borrowing costs. The Sensex 30 index reached an intra-day high of 17,342.88 and low of 17,182.29. While Nifty 50 reached a high of 5219.55 and a low of 5166.90. On the currency front rupee hovered around INR 55.45 to the Dollar.

· Germany: Markit Service PMI for July at 50.3 vs. est. 49.7 vs. prev. 49.9.

· Eurozone: Markit Service PMI for July at 47.9 vs. est. 47.6 vs. prev. 47.1.

· Eurozone: Markit PMI Composite for July at 46.5 vs. est. 46.4 vs. prev. 46.4.

· Eurozone: Retail Sales on M/M basis for June at 0.1% vs. est. 0.0% vs. prev. 0.8%.

· Eurozone: Retail Sales on Y/Y basis for June at -1.2% vs. est. -1.4% vs. prev. -0.8%.

On the domestic front, an economic survey showed that, Indian economy is likely to grow by 6 to 6.2 percent in the current fiscal versus a previous of 6.5 per cent in 2011-12.

In the individual stock corner, today’s top gainers included Asian Paints, Wipro, Dr. Reddys Labs, ONGC and Gail At the bottom end stocks included Sterlite Industries, Jindal Steel, Tata Steel, Hindalco, IDFC and ICICI Bank.

Commodities traded higher during the session with WTI at USD 88.22 up 1.25% and Brent trading at USD 106.55 up 0.61%. Later in the day, US Department of Labor is expected to release Nonfarm Payrolls data for July. The current expectation stand at 100K versus a previous 80K; Unemployment rate for July expected at 8.2 per cent versus previous 8.2 per cent.

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

(Economic Times, Bloomberg ,Business Standard,FX Street)

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.

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

( Business Standard, Economic Times and Moneycontrol)

DAILY MARKET REPORT – 17 JULY 2012

Lacklustre day of trade, volatile index, sums up the day. The Sensex closed a measly 1.99 points up or 0.01 percent at 17105.30 in trade today. The Sensex touched a high of 17236.08 and a low of 17,074.63 points in trade today. The Nifty closed 4.4 points or 0.08 percent lower at 5192.85 points. Nifty touched a high of 5236.70 and a low of 5181.70 in trade today.

RBI governor D Subbarao stated that India should come up with a Producer Price Index to measure inflation rather the current procedure as it was able to capture price changes of goods and services better.

On the sectoral indices front on the BSE, the Realty Index was down 1.47 percent, the Auto Index declined 1.41 percent, the Power Index was 1.34 percent down and the Capital Goods Index also fell 0.88 percent. The FMCG and Healthcare Index rose 1 and 0.83 percent respectively.

On the stock front, stocks of the Tata Group declined in trade today for the second consecutive session. TCS declined 2 percent, Tata Motors was lower by 1.5 percent; Tata Steel and Tata Power declined 0.7 percent each. Reliance Industries declined in trade to INR 719.15, down 0.16 percent, on warnings that its output would lower from the KG-D6 basin if the its latest capex plan is not announced. Axis Bank was down 2 percent on rising NPA’s inspite of posting higher 1Q12 numbers. Bajaj Finance also reported its earnings. Aviation stocks declined on price hike of aviation turbine fuels.

On the global markets, most of them in Asia rose on account of hopes of the Fed announcing a stimulus package for the economy. Asia rose well by around 0.5-1.00 percent, Hang Seng being the biggest gainer amongst the Indices. Europe is marginally positive in trade.

It was shocking to see HSBC Holdings being involved in investigations which could seriously malign its image. The co. was accused of money laundering, bypassing sanctions by lending to Iran and to various terrorist organizations.

Spain auctioned its debt worth EUR 3.5 b worth of short term debt on lower yields.

All eyes on the Fed today as markets would look forward to stimulus inducing measures.

On the currency front, Rupee closed at 55.21, up 0.07 paise to the dollar.

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

(Bloomberg, Business Standard, Economic Times and Moneycontrol)

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)

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.

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

(Business Standard, Economic Times and 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.

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

(Business Standard, Economic Times and Moneycontrol)

DAILY MARKET REPORT – 04 JULY 2012

Third day in succession, the markets end flat, but the Nifty closed above the 5300 level for the first time since 19 April 2012. The consolidation in the markets on the back of the 400 point rise last Friday saw three consecutive flat sessions.

The Nifty closed at 5302.55 points, up 14.60 points or 0.28% with the high of 5,317.65 and a low of 5,273.30 today. The Sensex closed 17462.81, higher by 37.10 points or 0.21 percent higher. It touched a high of 17523.77 and a low of 17372.45 in trade today.Banks and Metals led gains in trade today.

India’s Services PMI data by HSBC saw a drop to 54.3 in June from 54.7 in May. For Europe, the French Services and EU and Spain’s Services PMI data showed gains from the previous period, while German, Great Britain PMI declined.

On the sectoral indices data:

BSE Midcap Index up 0.83 percent; BSE Smallcap Index moved up 0.91 percent; the Metal Index gained 2.07 percent, Realty Index gained 1.83 percent; BSE Power Index 0.62 percent higher. The BSE Oil & Gas Index and FMCG Index declined 0.68 percent and 0.45 percent respectively.

Asia closed up, flat though on stimulus hopes. Europe opened lower by banks and utility stocks declining in trade.

The Rupee closed at 54.75, gaining 0.45 to the Dollar.

Commodities inched lower during the session with WTI at USD 87.13 down 0.60% and Brent trading at USD 99.85 down 0.82%. On the weather front, severe storms expected over Northeast and Midwest.

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

(Business Standard, Economic Times and Moneycontrol)

FII’S BULLISH ON NIFTY, SEE 100-150 POINTS UPSIDE

FII’s invested a total of INR 1568 cr in the equities markets, mainly in the Nifty and Bank Nifty futures on Friday. The sentiment amongst the FII’s is that if the stimulus package goes through in Europe to capitalize European banks, some portion of the funds would eventually be channeled into emerging markets.

From Tuesday’s close at 5287 levels, FII’s do see an upside momentum by 100-150 points. FII’s based their outlook on the 141-point rise in Nifty futures on Friday on the back of a 15 percent rise in open interest in index futures to INR 12,603 cr.

But we also noticed two days of lacklustre days of trades with Nifty gaining marginally. (Economic Times)