India Strategy Report
Friday, July 08, 2011
The crucial corporate earnings season has just begun. Investors will closely watch the post-Q1 June 2011 result management commentary to gauge the future earnings outlook at a time when firms are witnessing cost pressures amid rising interest rates and staff costs. A hike in transportation costs will add to cost pressure of India Inc. As per reports, freight rates have gone up by 8% to 9% on all routes across India following the recent hike in diesel prices.
Volatility ruled the roost as the barometer index BSE Sensex fell below the psychological 19,000 level, a day after regaining that mark on Thursday, 7 July 2011. Investors were cautions ahead of the onset of the Q1 June 2011 earnings season.
The Sensex rose 95.24 points or 0.51% to 18,858.04 in the week ended Friday, 8 July 2011. The 50-unit S&P CNX Nifty rose 33.45 points or 0.59% to 5660.65. The BSE Mid-Cap index jumped 94.64 points or 1.37% to 6,996.31. The BSE Small-Cap index rose 150.73 points or 1.83% to 8,375.14. Both the BSE Small-Cap, Mid-Cap indices outperformed the Sensex.
Mining and metal stocks led decline on the bourses as profit booking emerged after recent strong rally in share prices. Mining and metal stocks tumbled on reports a panel of ministers has approved the draft Mining Bill, which calls for miners to give to local communities an amount equivalent to royalties so as to compensate people displaced by such projects. The barometer index BSE Sensex fell below the psychological 19,000 level, a day after regaining that mark on Thursday, 7 July 2011. The Sensex ended 220.26 points or 1.15% lower, off 273.66 points from the day's high and up 40.33 points from the day's low. The market breadth was weak.
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
8/7/2011 531761 Amulya Leas RITESH STOCK BROKING PRIVATE LIMITED B 25100 45.60
8/7/2011 531761 Amulya Leas RAJESH GUPTA B 41914 45.50
8/7/2011 531568 Ashutosh Paper HIGH VALUE TRADERS PVT LTD B 35000 144.49
8/7/2011 533469 BIRLAPACIFIC V P PATEL S 1411946 22.00
8/7/2011 500077 Cable Corp CLAREVILLE CAPITAL INDIA MASTER FUND LIMITED B 1900000 29.00
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
08-JUL-2011,JAGRAN,Jagran Prakashan Limited,JAGRAN MEDIA NETWORK INVESTMENT PRIVATE LIMITED,BUY,16046350,122.00,-
08-JUL-2011,NESCO,Nesco Limited,C D INTEGRATED SERVICES LTD.,BUY,70278,695.61,-
08-JUL-2011,NESCO,Nesco Limited,CHANDARANA INTERMEDIARIES BROKERS P. LTD,BUY,105564,695.43,-
08-JUL-2011,NESCO,Nesco Limited,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,190431,695.14,-
08-JUL-2011,NESCO,Nesco Limited,MANIPUT INVESTMENTS PVT. LTD.,BUY,75123,695.00,-
DB Realty, Unitech, Videocon Industries and Marico are among the other gainers.
Shares of microfinance firm SKS Microfinance spurted 20% to Rs 493.20 extending Thursday's 20% jump triggered by the finance ministry releasing the draft of a bill aimed at developing and regulating microfinance institutions. The stock topped the gainers in the BSE's 'A' group.
Key benchmark indices extended losses in late trade as European stocks moved off highs ahead of the crucial US nonfarm payrolls data. The barometer index BSE Sensex fell below the psychological 19,000 level, a day after regaining that mark on Thursday, 7 July 2011. The Sensex was provisionally down 247.16 points or 1.30%, off 300.56 points from the day's high and up 13.43 points from the day's low. The market breadth was weak.
Stronger than expected ADP employment data, rebound in retail sales increases appetite for cyclic stocks
US stockmarket ended solidly higher on Thursday, 7 July 2011, as investors chased for risky assets on gaining confidence over economic growth after the release of two stronger-than-anticipated reports on the jobs market.
Coal India lost 5.14% at Rs 374 at 9:34 IST on BSE on reports a panel of ministers has approved the draft Mining Bill whereby coal miners are required to share 26% of their profits with local communities.
Meanwhile, the BSE Sensex was up 14.66 points, or 0.08%, to 19,092.96.
The market is likely to see a firm start on positive global cues. Trading of S&P CNX Nifty on the Singapore stock exchange indicates a gain of 27 points at the opening bell. The market sentiment remains firm on sustained buying by foreign institutional investors (FIIs) over the past few days. FIIs bought shares worth a net Rs 868.71 crore on Thursday, 7 July 2011, as per provisional data from the stock exchanges. Domestic institutional investors (DIIs) sold shares worth Rs 161.03 crore on that day. The results season kickstarts today, 8 July 2011, with housing finance major HDFC unveiling its Q1 June 2011 results.
The Indian markets are expected to begin the session on a higher note on account of positive global cues. HDFC and Indusind Bank results will be eyed.
Headlines for the day:
SBI loans now costlier; deposits to earn more
GoM approves 26% profit-sharing for coal companies
JSW Steel to halt expansion of Vijayanagar unit
Major corporate action
Results: HDFC, Indusind Bank
Ex-date for special dividend of Jyoti Structures
Ex-date for final dividend of Hindustan Unilever, Pratibha Industries