Sunday, June 13, 2010
Cautious outlook is visible from the trend in the F&O segment; Global market trend continues to be crucial,
the range seems to remain flat with downward bias and extreme volatility
The market ended the week with minor losses as revival of monsoon rains, robust industrial production data and strong exports data from China, helped stocks bounce back from a sharp fall registered at the onset of the week.
Foreign institutional investor (FII) inflow in June 2010 totaled Rs 1187.70 crore, while FII inflow in the calendar year 2010 totaled Rs 21,756.80 crore (till 9 June 2010).
MICRO TECHNOLOGIES (INDIA) LIMITED
ANNUAL REPORT 2009-2010
Your Directors are pleased to present the Eighteenth Annual Report and the
audited accounts for . the financial year ended March 31, 2010.
Investors with a two-three year horizon and a moderate risk appetite can consider buying the ING Vysya Bank stock. The bank is an old generation private sector one in which ING, a global financial major, owns 43.72 per cent stake. While the stock has under-performed on a year-to-date basis, it may have scope to provide healthy capital appreciation, given that it has consistently improved key operational parameters though they are low compared with peers. But the progress that the bank has made is impressive.
Investors can consider buying the shares of Hindustan Zinc, subsidiary of Sterlite Industries, given the company's dominant position in domestic user industries. This is supported by the fact that steel production volumes are beginning to increase and that the automotive and consumer durables segments too are witnessing a ramp-up.
Investors with a two-year horizon can consider buying the shares of DB Corp, publisher of the widely read Hindi newspaper Dainik Bhaskar, given its robust prospects for expanding advertising revenues through pricing and volumes.
Investments can be avoided in the initial public offering of Parabolic Drugs, which is engaged in the manufacturing and contract manufacturing of active pharmaceutical ingredients (API), and API intermediates for domestic and export markets. At the price band of Rs 75-85, the offer is priced at 14-15 times its likely FY-11 per share earnings on a post-offer equity base.
Investors with a two-year horizon can consider buying the shares of Sasken Communication Technologies (Sasken), a telecommunications software provider. Significant improvement in key operating and cost metrics and a general pick-up in the outlook for mobile handsets and semiconductors is likely to improve revenue and earnings growth. In addition, Sasken's acquisition of the key assets of a company in the US is expected to contribute significantly to revenues.
Shares of the beleaguered oil giant recovered after supportive comments from the UK government. "We are all concerned about the human and environmental impact and as the Prime Minister has said we understand the concerns of the U.S. administration," Chancellor of the Exchequer George Osborne said after speaking to BP chief executive Tony Hayward by telephone. "The Prime Minister is also clear that we need constructive solutions and that we remember the economic value BP brings to people in Britain and America," Osborne added. BP shares climbed 7-8% on Friday, its biggest gain since November 2008 and snapping four days of declines that saw its shares fall to the lowest level in 13 years.
Consumer price index (CPI) rose 3.1% in May from a year earlier, while wholesale price index (WPI) rose 7.1%, according to figures from the National Bureau of Statistics. Consumer and producer prices in China accelerated in May with retail inflation outpacing the upper end of the government's target, while bank lending rose faster than expected and retail sales beat estimates. Consumer price index (CPI) rose 3.1% in May from a year earlier, while wholesale price index (WPI) rose 7.1%, according to figures from the National Bureau of Statistics. The results exceeded expectations for a 3% rise in CPI and a 6.9% gain in PPI. The CPI is now exceeding the 3% ceiling of the government's targeted inflation range. However, some analysts expressed doubt the CPI figures would prompt a major tightening response from Beijing.
Other data showed that Chinese banks extended 639.4 billion yuan (US$93.6bn) in new loans for the month, down from the 774 billion yuan extended in April, according to figures published by the People's Bank of China. The lending figure exceeded forecasts for 600 billion yuan in new loans. Separately, money supply as measured by M1 rose 29.9%, easing from April's 31.3%, while the broader M2 metric was up 21%, easing from 21.5% in April, according to data. May industrial-production growth eased to 16.5% from 17.8% in the previous month, missing economists' estimates for 17%. In the year-ago period China's export-oriented economy was just beginning to recover from the collapse in global trade.
Urban fixed-asset investments for the first five months of this year (January-May) eased to 25.9% from 26.1% in the January-April period, though the result was slightly higher than the 25.8% growth anticipated by analysts. But retail sales jumped 18.7% in May, compared with an 18.5% gain in the previous month, today’s data showed.
India's industrial production expanded in April at a much faster pace than anticipated, putting additional pressure on the Reserve Bank of India (RBI) to undertake more monetary tightening at its policy review next month. Growth was once again led by a strong performance by the crucial manufacturing segment, even as electricity turned out to be a laggard. Industrial output, as measured by the index of industrial production (IIP), stood at 17.6% in April as against an upwardly revised growth rate of 13.9% in March, data released by the Central Statistical Organisation (CSO) showed. The IIP reading beat consensus estimates of 13.5-14.5%. IIP growth stood at a mere 1.1% in April last year, as India's factories, mines and power utilities remained under pressure amid a sluggish global economy.
Lodha Developers, Mumbai's largest and India's No 1 unlisted real estate company, announced the launch of World One – the tallest residential tower in the world. Located on a large 17 acre site in Upper Worli, Mumbai, this masterpiece will stand close to half a kilometer tall.
Auction for India's wireless broadband spectrum ended on Friday after 16 days of aggressive bidding. Infotel Broadband Services, run by Anant Nahata, bagged spectrum in all 22 circles of the country and will pay Rs128.48bn. Infotel is owned by the son of Mahendra Nahata, managing director of Himachal Futuristic Communications Ltd. (HFCL). Qualcomm bagged the lucrative circles of Delhi and Mumbai. A slot of 20 MHz unpaired broadband spectrum went for Rs128.90bn, fetching the Government Rs385bn. Broadband spectrum in Mumbai emerged the most expensive, beating Delhi's highest bid of Rs22.41bn at Rs22.93bn.
After ups and downs this week, the Sensex and Nifty managed to close above the psychological levels of 17,000 and 5100 levels respectively. The two main indices recovered from early week's hiccups on the back of encouraging economic data from across Asia. Next week could turn out to be rather subdued and sideways as economic reports are fewer. Also, the market may take a pause ahead of next month's corporate results even as uncertainty prevails over the health of the debt-plagued European economies. The latest data from the US are a bit of a mixed bag, with retail sales falling for first time since September 2009 and consumer sentiment advancing.
There is no escaping volatility for the global stock markets as sovereign debt concerns continued to haunt investors around the world. Global markets had another topsy-turvy week, though they did manage to rebound by the end of the week. Remarks by an official in Hungary that the country might default on its debt unnerved investors before the government swung into action to limit the damage. The Hungarian prime minister announced an economic plan that included cuts in public-sector wages. Greece's main share index hit its lowest level since March 1998 and the euro sank to a four-year low against the dollar.
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