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Saturday, December 29, 2012

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Weekly Market Strategy - Dec 29 2012


Weekly Market Strategy - Dec 29 2012

Year 2012 winds up with gains of over 1% for Indian markets


The Indian markets wrapped the last week of the year 2012 in the green zone breaking the losing trend of last two-weeks. The Sensex rose 1.05% and the Nifty was up by 1.03% for the week ended Dec 28, 2012. Major Headlines: FDI in services sector rises 5% to $3.6 bln Advance tax rises by 7.5%, reflects impact of slowdown Diesel prices to be hiked by Rs10/litre over 10 months time ECBs dip by 11% in Apr-Nov 2012 at $19.92 bn CARE shares spurt on strong debut Indian Indices Welcome to the 'Weekly Market Wrap' for the week ended December 28, 2012. The Indian markets wrapped up the week ended December 28, 2012 in the green zone. The key indices were in consolidation mode and remained in a tight range throughout the week. After a negative trend for the past two-weeks, the markets witnessed lackluster trade and did not show any major movements. There were no great triggers to lift markets higher, which led the key indices to trade in a narrow range throughout this week. The market sentiments got boosted by data showing that foreign institutional investors (FIIs) remained buyers of Indian stocks during the week. In the week gone three new companies got listed: 1. Shares of Credit Analysis & Research (CARE) surged on its listing day on Wednesday, (December 26, 2012). 2. Shares of PC Jeweller listed with modest gains on its debut on Thursday, (December 27, 2012). 3. Shares of Bharti Infratel plunged on debut on Friday, (December 29, 2012). The markets gained in three out of four trading sessions in the truncated week gone by. The BSE Mid-Cap index advanced 1.36% while the BSE Small-Cap index gained 0.23%. The BSE Sensex rose 202.84 points or 1.05% to 19,444.84 while the NSE Nifty gained 60.65 points or 1.03% to 5,908.35 in the week. Weekly market trend from December 24 - December 28, 2012 1. The key benchmark indices opened the week on a positive note on December 24, 2012. The Indian markets closed trading session on a flat note. The traders booked profits ahead of Christmas holiday and expiry of December derivative contracts. The Sensex shut shop at 19255, up by 13 points while the Nifty rose 8 points to close at 5855. 2. On December 25, 2012, the markets remained closed on account of Christmas. 3. On December 26, 2012, the domestic markets rose nearly 1%, ahead of F&O expiry. Banking stocks gained on hopes of easing liquidity as the Reserve Bank of India continues with cash injection measures and on expectations of a rate cut in next month. The Sensex closed at 19417.46, up by 162.37 points, while the Nifty rose by 49.85 points to close at 5905.6 4. On December 27, 2012, the key indices ended near day's low on December F&O expiry day as traders rolled over positions to the January series. The Sensex settled at 19323.80, down by 93.66 points, while the Nifty shut shop at 5870.10, down by 35.50 points. 5. On December 28, 2012, the rise in the market was led by oil shares on the back of the proposed gradual hike in diesel and kerosene prices. The Sensex shut shop at 19,444.84, up by 121.04 points, while the Nifty rose 38 points to close at 5,908.35. Global indices All the global markets closed mixed this week. Top gainers: Nikkei rose by 4.58% and Shanghai Composite surged by 3.71% and Hang Seng up by 0.71%. On the other side, top losers were Nasdaq, which was down by 2.01%, Dow Jones fell 1.92% and CAC40 slipped 1.12%. Sectoral and stock screening: All the sectors closed the week on a positive note. BSE Oil & Gas rose by 2.05%, followed by Realty which surged by 2.02%, Power up by 1.68% and CG advanced by 1.58%. Looking at the 'A' group stocks, top three gainers of the week were - Madras Cement up by 9.89%, NHPC rose by 8.25% and Gitanjali Gems up by 7.81%. Top three losers of the week were - TTK Prestige fell by 4.80%, Astrazenca Pharma down by 4.23% and Strides Arcolab fell by 3.35%. FII/MF activity: The foreign institutional investors (FIIs) have been the net buyers Indian stocks to the tune of Rs4829.9 crore till December 27, 2012. The domestic investors sold Indian shares worth a net of Rs110.8 crore on December 24, 2012. Market Outlook for the coming week! The Indian markets will soon enter the crucial period of corporate earnings. Third quarter December 2012 earnings will be a major trigger driving the sentiments next week. Automobile and cement stocks will be in focus as the companies from these two sectors start unveiling their monthly sales volume data for November 2012 from Tuesday, (January 01, 2013). The results of monthly surveys on manufacturing and service sector, automobile and cement sales data for December 2012 will also capture limelight in the coming week. Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories for December 2012 on Wednesday, (January 02, 2013) and also HSBC India Services PMI and HSBC India Composite PMI for December 2012 on Friday, (January 04, 2013).

Year 2012 winds up with gains of over 1% for Indian markets


The Indian markets wrapped the last week of the year 2012 in the green zone breaking the losing trend of last two-weeks. The Sensex rose 1.05% and the Nifty was up by 1.03% for the week ended Dec 28, 2012. Major Headlines: FDI in services sector rises 5% to $3.6 bln Advance tax rises by 7.5%, reflects impact of slowdown Diesel prices to be hiked by Rs10/litre over 10 months time ECBs dip by 11% in Apr-Nov 2012 at $19.92 bn CARE shares spurt on strong debut Indian Indices Welcome to the 'Weekly Market Wrap' for the week ended December 28, 2012. The Indian markets wrapped up the week ended December 28, 2012 in the green zone. The key indices were in consolidation mode and remained in a tight range throughout the week. After a negative trend for the past two-weeks, the markets witnessed lackluster trade and did not show any major movements. There were no great triggers to lift markets higher, which led the key indices to trade in a narrow range throughout this week. The market sentiments got boosted by data showing that foreign institutional investors (FIIs) remained buyers of Indian stocks during the week. In the week gone three new companies got listed: 1. Shares of Credit Analysis & Research (CARE) surged on its listing day on Wednesday, (December 26, 2012). 2. Shares of PC Jeweller listed with modest gains on its debut on Thursday, (December 27, 2012). 3. Shares of Bharti Infratel plunged on debut on Friday, (December 29, 2012). The markets gained in three out of four trading sessions in the truncated week gone by. The BSE Mid-Cap index advanced 1.36% while the BSE Small-Cap index gained 0.23%. The BSE Sensex rose 202.84 points or 1.05% to 19,444.84 while the NSE Nifty gained 60.65 points or 1.03% to 5,908.35 in the week. Weekly market trend from December 24 - December 28, 2012 1. The key benchmark indices opened the week on a positive note on December 24, 2012. The Indian markets closed trading session on a flat note. The traders booked profits ahead of Christmas holiday and expiry of December derivative contracts. The Sensex shut shop at 19255, up by 13 points while the Nifty rose 8 points to close at 5855. 2. On December 25, 2012, the markets remained closed on account of Christmas. 3. On December 26, 2012, the domestic markets rose nearly 1%, ahead of F&O expiry. Banking stocks gained on hopes of easing liquidity as the Reserve Bank of India continues with cash injection measures and on expectations of a rate cut in next month. The Sensex closed at 19417.46, up by 162.37 points, while the Nifty rose by 49.85 points to close at 5905.6 4. On December 27, 2012, the key indices ended near day's low on December F&O expiry day as traders rolled over positions to the January series. The Sensex settled at 19323.80, down by 93.66 points, while the Nifty shut shop at 5870.10, down by 35.50 points. 5. On December 28, 2012, the rise in the market was led by oil shares on the back of the proposed gradual hike in diesel and kerosene prices. The Sensex shut shop at 19,444.84, up by 121.04 points, while the Nifty rose 38 points to close at 5,908.35. Global indices All the global markets closed mixed this week. Top gainers: Nikkei rose by 4.58% and Shanghai Composite surged by 3.71% and Hang Seng up by 0.71%. On the other side, top losers were Nasdaq, which was down by 2.01%, Dow Jones fell 1.92% and CAC40 slipped 1.12%. Sectoral and stock screening: All the sectors closed the week on a positive note. BSE Oil & Gas rose by 2.05%, followed by Realty which surged by 2.02%, Power up by 1.68% and CG advanced by 1.58%. Looking at the 'A' group stocks, top three gainers of the week were - Madras Cement up by 9.89%, NHPC rose by 8.25% and Gitanjali Gems up by 7.81%. Top three losers of the week were - TTK Prestige fell by 4.80%, Astrazenca Pharma down by 4.23% and Strides Arcolab fell by 3.35%. FII/MF activity: The foreign institutional investors (FIIs) have been the net buyers Indian stocks to the tune of Rs4829.9 crore till December 27, 2012. The domestic investors sold Indian shares worth a net of Rs110.8 crore on December 24, 2012. Market Outlook for the coming week! The Indian markets will soon enter the crucial period of corporate earnings. Third quarter December 2012 earnings will be a major trigger driving the sentiments next week. Automobile and cement stocks will be in focus as the companies from these two sectors start unveiling their monthly sales volume data for November 2012 from Tuesday, (January 01, 2013). The results of monthly surveys on manufacturing and service sector, automobile and cement sales data for December 2012 will also capture limelight in the coming week. Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories for December 2012 on Wednesday, (January 02, 2013) and also HSBC India Services PMI and HSBC India Composite PMI for December 2012 on Friday, (January 04, 2013).

US stocks end lower for fourth straight day


Maneuvering over fiscal cliff talks take indices lower U.S. stocks ended moderately lower on Thursday, 27 December 2012. Stocks extended losses into a fourth session as Wall Street registered its distress over the budget impasse in Washington. Equities saw gains at the outset of the session, but were met with a quick turn in sentiment after Senate Majority Leader Reid spoke from the Senate floor. During his remarks, Senator Reid said that all signs suggest the country will go over the fiscal cliff. In addition, the senator said the House of Representatives is being run as a "dictatorship" by Speaker Boehner. The comments caused the major averages to fall to their respective lows. For the day, the Dow ended lower by 18.28 points (0.14%) at 13,096.31. Nasdaq ended lower by 4.25 points (0.14%) at 2,985.91. S&P 500 ended lower by 1.74 points (0.12%) at 1,418.09. Among the ten economic sectors, utilities were hardest hit and consumer companies was the best performing of its 10 industry sectors. Investors and traders continue to worry about the U.S. fiscal cliff negotiations that have stalled and now with only a few days left for U.S. lawmakers to reach a deal. President Obama did come back from his Hawaii vacation early. However, there was no progress on the matter as of Thursday afternoon. U.S. lawmakers have until 3 January 2013 to come to agreement before the government falls off the fiscal cliff. Cisco Systems and Bank of America led the way among decliners that included all of the benchmark's 30 components. Major financials were among the top performers early, but Speaker Reid's comments sent banks to fresh lows. Bank of America was up over 1.0% in early trade, but ended lower by 0.6%. Elsewhere, Citigroup and JPMorgan Chase were both down near 1%. Consumer stocks were among the biggest laggards yesterday after MasterCard SpendingPulse reported disappointing growth in holiday sales. Today, the discretionary space trades in-line with the broader market. Several apparel producers and multi-line retailers witnessed an extension of yesterday's weakness. On the upside, footwear designer Deckers Outdoor surged 8.1% despite the lack of news to account for the move. In overnight news, the Japanese stock market rallied to a nearly two-year high on hopes for more monetary policy stimulus coming from the Bank of Japan. European stock markets were firmer, helped in part by a successful auction of Italian bonds and better Italian manufacturing data. The dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.1% on Thursday after dropping earlier during the day. Today's economic news at Wall Street was mixed. The latest weekly initial jobless claims count totaled 350,000, which was better than the 375,000 that had been expected. The tally was below the revised prior week count of 362,000. As for continuing claims, they fell to 3.206 million from 3.238 million. The December consumer confidence came in at 65.1, while economists expected a reading of 70.0. This follows the prior month's revised reading of 71.5. Separately, new home sales in November hit an annualized rate of 377,000, which was up from October's revised rate of 361,000, and worse than the rate of 379,000 that had been broadly expected. Latest data showed that profits earned by China's industrial companies jumped 22.8% in November from a year earlier, accelerating from October's 20.5%. Bullion metals finished higher on Thursday, 27 December 2012. Slight decline in the U.S. dollar earlier in the day amid thin holiday dealings on Thursday and some short covering and bargain hunting, and even some fresh safe-haven demand, lifted the yellow metal. Gold for February delivery rose $3 (0.2%) to settle at $1,663.7 an ounce on the Comex division of the New York Mercantile Exchange on Thursday. On Thursday, March silver rose $0.20, or 0.7% to settle at $30.24 an ounce. Crude oil prices ended little lower on Thursday, 27 December 2012 at Nymex. Uncertainty over talks regarding fiscal cliff solution and movement of dollar affected the crude prices. On Thursday, light and sweet crude oil futures for light sweet crude for February delivery closed lower by $0.11 (0.1%) at $90.87/barrel. Decliners edged ahead of advancers on the New York Stock Exchange, where nearly 567 million shares traded. Composite volume topped 2.8 billion. Indian ADRs ended mixed on Thursday. In the Banking space, ICICI Bank was down 1.2% and HDFC Bank rose 0.6%. In the IT space, Infosys was down 1% and Wipro was up 0.5%. In the Telecom space, MTNL lost 0.03% and Tata Communication was up 1.5%. In the other space, Sterlite was down 0.23%, Tata Motors was up 0.8%. Dr Reddys was down 0.7%. For tomorrow, no economic or earning data is expected for the day.

Auto, cement stocks will be in focus on monthly sales data


Results of monthly surveys on manufacturing and services sectors and automobile and cement sales data for December 2012 will be in focus next week. Auto and cement stocks will be focus as companies from these two sectors will start unveiling monthly sales data for November 2012 from Tuesday, 1 January 2013. Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for December 2012 on Wednesday, 2 January 2013. The HSBC manufacturing Purchasing Managers' Index (PMI), which gauges the business activity of India's factories but not its utilities, rose to 53.7 in November 2012 from 52.9 in October 2012. Readings above 50 denote growth.

BSE Sensex, Nifty gain over 1% each


Key benchmark indices edged higher in the week ended Friday, 28 December 2012 in thin trading. The market gained in 3 out of four trading sessions in the week just gone by. Shares of Bajaj Auto scaled a record high. Data showing that foreign institutional investors (FIIs) remained net buyers of Indian stocks boosted sentiment. Shares of three companies debuted on the bourses in the week. Shares of Credit Analysis & Research (CARE) surged on its debut on Wednesday, 26 December 2012. Shares of PC Jeweller logged modest gains on its debut on Thursday, 27 December 2012. But shares of Bharti Infratel dropped on debut on Friday, 29 December 2012.

Sunday, December 23, 2012

Hot India Stock Picks 2013


What's yours?

Electronics products in India is expected to grow US$400bn by 2020: Kapil Sibal


Indian electronics hardware production constitutes only around 1.3% of the global hardware production and it is estimated that demand of electronics products and systems in India is expected to grow to US$400bn by 2020. This was stated by Kapil Sibal, Union Minister for Communications and IT, while addressing the Consultative Committee meeting of the ministry. He pointed out that at the conventional rate of growth of domestic production, it would only be possible to meet demand of about USD 100 Billion by 2020. The Government recognizes that sustaining growth in IT and telecom is hugely dependent on our ability to foster Electronics System Design and Manufacturing (ESDM) in the country, he added. The minister said that while there have been concerted efforts for rapid growth of the electronics (including telecom) hardware manufacturing sector in the past like 100% FDI permitted under automatic route, no Industrial license requirement, these efforts have not led to a substantial impact. He also pointed out that given India’s growing strength in chip design and embedded software, the increasing importance of design in product development has the potential to make India a favoured destination for ESDM. The minister went on to outline some of the initiatives that have been taken for the development of electronics (including telecom) hardware manufacturing in the country: National Policy on Electronics (NPE) 2012 National Telecom Policy – 2012 (NTP-2012) Electronics Manufacturing Clusters (EMC) Scheme Modified Special Incentive Package (M-SIPS) Scheme Setting up Semiconductor Wafer Fabrication Units Preference to Domestically Manufactured Electronic Goods (Preferential Market Access) Notification by the Department of Telecommunications (DOT) on 5th October 2012 for Government Procurement and Government funded projects Electronics Development Fund (EDF) Scheme for mandatory registration of identified Electronic Products for meeting specified safety standards Export Promotion Scheme for ESDM Industry According Priority Sector Status to IT purchases Declaring Mobile phones as goods of special importance under the CST Act, 1956 Communication and Marketing Members of Parliament attending the meeting raised a number of issues concerning posts, telecom and IT. Members underlined the need for adequate number of post offices. Some members also pointed out the problem of connectivity on BSNL, especially in rural areas and on highways. A member raised the issue of the difficult conditions of Dak Sevaks. A member raised the issue of inadequate handling of e-waste and desired a sysem be created for dumping of e-waste. A member welcoming the initiative to encourage ‘electronics manufacturing’, urged for strengthening the existent public sector industry. The following members of Parliament were present at the meeting: PK Biju, Sanjay Nirupam, SG Naik, Shivraj Singh Lodhi and Vinay Pandey. Also present were Minister of State for Communications and IT, Dr. (Smt.) Kruparani Killi, Secretaries for the Departments of IT, Posts and Telecom and other senior officers of the ministry of Communications and IT.

Government for stable tax regime: FM


The Union Finance Minister, P. Chidambaram said that the Government is fully committed to provide best possible facilities to the tax payers for better tax compliance and revenue augmentation. He said that our focus is always to have a reasonably stable tax regime which is in the interest of both the tax payers as well as tax collectors. The Finance Minister Chidambaram was speaking at the 5th Meeting of Consultative Committee attached to his Ministry here. The agenda of the meeting was ‘Facilitation for Tax Payers’. The Finance Minister stressed the need for systematic changes including strengthening of the tax information system for better collection of taxes. He said that at present 3.5 crore people are filing income tax returns. Only 14.6 lakh people have declared their income of Rs. 10.00 lakh and above for tax purposes which is not realistic. The Finance Minister informed that we have moderate rate of income tax as compared to various developed countries. Our peak rate of taxation is 30% at present. Therefore, there is lot of scope for better tax compliance and tax collections, the Minister added. The Finance Minister informed that about 50% tax payers are filing their return through e-mode. He said that there is a need for more and more tax payers to electronically file their return as it well help in expediting tax processing and refund process. The Finance Minister informed the members that during last year i.e. 2011-12, till this time, refund of Rs. 70,000 crore was made which included arrears for the previous year(s) while during the current year i.e. 2012-13, refund to the tune of Rs. 57,000 crore have been made. He said that the target for collection of direct taxes for the current year i.e., 2012-13 is fixed at Rs. 5,70,251 crore. The Members of the Consultative Committee present in the meeting suggested various measures for improving relationship with tax payers. Some members suggested that efforts be made to keep the tax rates low for better compliance. Some suggested that interest on refund may be paid at least at the bank rate of interest. Some Members suggested for widening of tax base for higher revenue collections. Some Members said that tax facilitation centres be opened in rural areas which in turn will help in increased revenue generation. Tax awareness campaign for payment of due taxes on time may also be undertaken in the local language.

India's top 10 list for New Year 2013


The party season just got more exciting! Thomas Cook (India) Ltd, India’s largest integrated travel and travel related financial services company, announced its "Top 10 List" for New Year 2013, from its luxury brand ‘Indulgence’. Thomas Cook India’s internal research and trend analysis predicted strong demand for holidays for the Year end- more so from its luxury segment. Added to this was the growing demand for recommendations for New Year breaks that would pique their discerning yet eclectic palate. The Top 10 List from Thomas Cook India’s luxury brand ‘Indulgence’ endeavours to do just that, with ten hand-picked destinations from must-do favourites like Sydney, New York, Bali and Paris to new entrants like Vietnam and Rio and then for a truly different and off-beat experience- Nha Trang (Vietnam), Koh Phangan (Thailand), Edinburg and The Niagara Falls. The travel fervor builds momentum with the approach of the New Year, and in recognition of the trend towards unique engagements & off beat experiences, "Indulgence" by Thomas Cook India invites its customers to usher in the New Year in style. Be it a spectacular midnight fireworks display at Sydney Harbour Bridge, witnessing the first rays of the rising sun at Gisborne, New Zealand, the cosmopolitan vibe of Cape Town’s waterfront, Bali’s heady party scene, torch-light street parades or the Grand Hogamanay Ball in Edinburg, New York’s bustling Times Square to beachfront celebrations at Nha Trang, Vietnam, and the pulsating rhythms of Rio’s Copacabana revelry, Thomas Cook India offers you the best New Year indulgent experiences. Madhav Pai, Director – Leisure Travel (Outbound), Thomas Cook (India) Ltd. says, "With our bookings up by an impressive 50%, the growing demand for New Year breaks is clearly a trend that we at Thomas Cook India are keen on leveraging. With a diversity of unique travel experiences and innovative activities, we are confident that The Top 10 List from our luxury brand ‘Indulgence’, will help our customers select a year-end holiday filled with unforgettable memories"

Raghuram Rajan's strategy for growth


Chief Economic Advisor Raghuram Rajan has proposed a three-pronged strategy and the proposition of a bold budget to put the economy back on high growth track. He briefed the reporters on the Mid-Year Economic Analysis which was tabled in Parliament on Monday. The analysis presented a bleak projection of growth for the current financial year at 5.7-5.9 % as opposed to 7.6% earlier. This would be the slowest growth rate in nearly a decade. Rajan said that growth is likely to improve to 6% in the second half from 5.4% of April-September first half on factors like improved better industrial output numbers, corporate profitability, business confidence and moderating inflation. "We can not be satisfied with this (5.7-5.9 per cent) rate of growth. So, we are not at the end of set of steps we need to take... we are at the end of the beginning," he said. "Further steps include a good confidence inducing budget, speeding up clearance for projects, and further steps in capital market reform," Rajan said . "Strengthening of financial infrastructure is important. Improving corporate bond market is also what we need to do. Number of measures we need to take including the vibrancy of equity market, ability of equity market market to finance infrastructure requirement needs to looked at," he said. On tax collections he said "Corporate profit earnings are not growing at pace, it was growing in past. We hope we will start picking up once again and that should add buoyancy. People are not making money as much as they were then clearly it is going to impinge on that kind of revenue," He was of the opinion that achieving budget targets in case of corporate tax and customs and central excise would be "somewhat difficult given the trend so far", as per mid year analysis. According to Rajan, the government would have to find new ways to boost growth so as to improve increase corporate tax profitability and tax collection. He added "Given the tight Budget situation, perhaps structural reforms can be made (to boost industry), instead of fiscal sops," On meeting fiscal deficit target of 5.3%, he said it would be difficult to achieve the same while on the disinvestment he said that the recent pick up in PSU stake sale will have positive impact on the receipts. "5.3 percent is a tough target. It would be a difficult target to reach. The focus is meeting target. It would add confidence ... The investor community sense that the path the Finance Minister has laid down on fiscal consolidation is also achievable," he said. On government expenditure he said "We have to be as careful as we can to avoid damage to growth. We have a fiscal envelope that is not going to increase and we have to stay within that. So, we have to find out in which way to achieve that". He said," I would like to see some changes in the business environment... Creating a better business environment for small and medium enterprises," .On further reforms he said the government should first fix the fiscal situation and ensure proper implementation. He said that there are signs beginning of stabilization, "Corporates are sitting on lot of liquidity. If profitability is increasing, then that gives them the signal that it is time to invest some more.. Lot of projects can be unveiled if they find more confidence in the economy," he said

Mid-year economic review tabled in Parliament


The Government has tabled the Mid-year economic review in Parliament. The Government is expecting the economy to grow between 5.7-5.9% in the current fiscal, which is much lower than 7.6% projected in the Mid-Review Economic Survey. The Finance Ministry also estimates inflation to moderate to 6.8-7% by March 2013. It also says that trade deficit would not be significantly higher than last year. "Given , an emerging scenario, it should be possible for the economy to improve the overall GDP growth rate to around 5.7-5.9% for the year 2012-13," said the Mid-Year Economic Review tabled in Parliament. The economy, would have to record a growth rate of 6% in the second half of the current financial year to reach the desired growth rate. To achieve 5.7-5.9 per cent growth, the review said: "Both fiscal and monetary policy, however, would need to be supportive to sustain investor confidence. The Government will also have to address the concerns relating to structural supply side bottlenecks.'' Agriculture is expected to improve because of better prospects with rabi crops benefiting from greater moisture content in the soil and dominance of irrigated wheat and rice crops.

Weekly Stock Picks - Dec 23 2012


Buy RIL Buy Bajaj Auto Buy Hindalco Buy TCS Buy Amtek Auto

Weekly Market Newsletter - Dec 23 2012


What the RBI did was more or less in line with market expectations. Although a section of the markets and India Inc. wanted a CRR cut, lack of announcement on the same wasn’t a surprise for sure. The RBI hinted at a shift in stance towards pro-growth measures Indian markets declined for the second week running, as investors digested news flow from India and its global peers, even as they wait for the Government to introduce important reforms. The market appears to be in a sort of uncertainty with some kind of year-end fatigue. Christmas is round the corner but no signs of a Santa Claus rally here. Nifty has been stuck in a trading band of 5,800-5,960 for last two weeks so a breakout either side is anxiously awaited to determine the near term direction. Global cues also were not supportive as fiscal cliff issues continue to overshadow any other economic news. In the coming curtailed week, volatility is likely to escalate due to F&O expiry.

No surprises...RBI keeps key policy rates unchanged


The Reserve bank of India (RBI) in its mid-quarter review of monetary policy kept policy rates unchanged on Tuesday. RBI has been decided to keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.25% of their net demand and time liabilities; and keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent. Consequently, the reverse repo rate under the LAF will remain unchanged at 7.0 per cent, and the marginal standing facility (MSF) and the Bank Rate at 9.0 per cent. In its second quarter (July-September) policy review, RBI noted that Headline WPI inflation edged down to 7.2% in November, mainly owing to softening of prices of vegetables, minerals and fuel. On the other hand, prices of cereals and protein-based items such as eggs, fish and meat firmed up further. Significantly, core (non-food manufactured products) inflation eased, aided by decline in prices of metals, cement and chemicals. On domestic growth front, RBI observed some "indications of a modest firming up of activity in October-December quarter. GDP growth in Q2 of 2012-13 at 5.3% was marginally lower than 5.5% in Q1. The recent policy initiatives by the Government and further reforms should help to boost business sentiment and improve the investment climate. As regards inflation, excess capacity in some sectors is working towards moderating core inflation. Furthermore, the easing of international commodity prices, particularly of crude, is expected to impart some softening bias to the evolving inflation conditions if it is not offset by the impact of rupee depreciation. The Reserve Bank is closely monitoring the evolving growth-inflation dynamic and will update the formal numerical assessment of its growth and inflation projections for 2012-13 as part of the third quarter review in January 2013. The Reserve Bank is closely monitoring the evolving growth-inflation dynamic and will update the formal numerical assessment of its growth and inflation projections for 2012-13 as part of the third quarter review in January 2013

Markets wrap 2nd last week of 2012 in red; Sensex loses over 300 pts


Domestic and global woes weighed on the market sentiments this week. The Sensex fell 0.38% and the Nifty lost 0.54% for the week ended December 21, 2012. Major Headlines: RBI leaves rates unchanged FDI inflows rises 67% in October Investments into P-notes surge in last 8 mths Foreign exchange reserves swell $484.2 mn India's deficit on track; Growth forecast lowers

Broader market seems to be on a correction mode or at least would remain choppy ahead of the December series expiry


Rollover to the January series have already started, but it is still not clear whether it is on the long side or on the short side… but the nifty option segment indicates huge drag for the nifty in the week ahead S&P nifty & nifty future and Futures & Option segment volumes

Saturday, December 22, 2012

Market slips on weak global cues


The market declined marginally last week on weak global cues amid dimming hopes that US politicians will reach a debt deal before the end of the year. United States is the world's biggest economy. Gains fuelled by hopes of new government reforms also subsided as the winter session of parliament ended on Thursday, 20 December 2012. The BSE Sensex fell 75.25 points or 0.39% to 19,242 in the week ended Friday, 21 December 2012. The 50-unit S&P CNX Nifty declined 31.90 points or 0.54% to 5,847.70 in the week. The BSE Mid-Cap index fell marginally by 0.02% and the BSE Small-Cap index fell by 0.38%. Both these indices outperformed the Sensex.

Wednesday, December 12, 2012

Daily News Roundup - Dec 12 2012


Jaguar Land Rover, exploring an opportunity to start production in Saudi Arabia, has signed a letter of intent to begin a feasibility study. (BL) Mahindra & Mahindra will increase prices of its vehicles by over 1% across various models in January to offset rising input costs. (BL) ITC is willing to invest nearly Rs30bn in Bengal over the next four years. (BBL) Videocon Industries announced a new discovery of light hydrocarbons in a well, which is a part of a concession area of Sergipe Alagoas ultra deep water basin in Brazil. (BL)

12-12-12: Good start, eye on IIP


"Production is not the application of tools to materials, but logic to work" - Peter F. Drucker The date 12.12.12 may not enthuse many as it marks Chaudas Amavasya, considered an inauspicious day. Thankfully, the stockmarkets have a mind of their own and looks like the global tailwinds may propel the Indian indices to a better start. The Index of Industrial Production data for October will be keenly watched given the contraction in September. Headwinds of course continue with the Standard & Poor's again warning that India still faced a downgrade possibility in its sovereign rating to junk grade. On the other hand Moody’s felt the country's growth prospects for 2013 have improved.

IPO Grey Market Premiums - Bharti Infratel, PC Jewellers


Company Name
Offer Price
(Rs.)
Premium
(Rs.)
Kostak Price
Minimum
Application
Kostak
(Rs. 1 Lac
Application)
Kostak
(Rs. 2 Lac
Application)
CARE
700 to 750
155 to 160
--
--
--
P. C. Jeweller
125 to 135
Rs. 5 Discount to Retailers
6 to 7
Rs. 600 to 650
Min. Application : 90 Shares
--
--
BhartiInfratel
210 to 240
Rs. 10 Discount to Retailers
Discount

--
Min. Application : 50 Shares
--
2500.00

Crude ends higher for first time in six sessions


Prices remain choppy and weak throughout the day Crude oil prices ended higher for first time in six sessions on Tuesday, 11 December 2012 at Nymex. Prices remained weak and choppy throughout the day but moved higher at the end. A weak dollar helped put a brake on the drop in prices during intra day trading. On Tuesday, light and sweet crude oil futures for light sweet crude for January delivery closed higher by $0.23 (0.3%) at $85.79/barrel. Prices had shed almost 4% in previous five trading sessions.

Bharti Infratel IPO gets muted initial response


Receives bids for 72.67 lakh shares The initial public offer (IPO) of Bharti Infratel received bids for 72.67 lakh shares till 16:00 IST on first day of the bidding for the IPO today, 11 December 2012. The issue was subscribed 0.05 times. The issue closes on 14 December 2012. The company is issuing 14.62 crore equity shares of face value of Rs 10 each in the price band of Rs 210 to Rs 240 per share. Along with the fresh issue, there is an offer for sale of 4.26 crore equity shares by existing shareholders viz. Compassvale, GS Strategic, Anadale, Nomura, and Fabrikant HK Trading. There is a discount of Rs 10 per share for retail investors.

CARE IPO subscribed 40.29 times


Gets bids for 24.65 crore shares Investors made a beeline for the initial public offer of credit rating agency Credit Analysis & Research (CARE). The IPO received bids for 24.65 crore shares till 16:00 IST on the last day of the bidding for the IPO today, 11 December 2012. The IPO was subscribed 40.29 times. The IPO price band is set at Rs 700-Rs 750. The IPO comprises of offer for sale of share by existing shareholders and therefore the company will not get any funds from the IPO. The selling shareholders are offering 71.99 lakh equity shares of face value Rs 10 each. The offer constitutes 25.22% of the post-offer paid-up equity share capital of the company.

Market may open higher on firm Asian stocks


The market may open higher on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 17.50 points at the opening bell. Asian stocks gained on Wednesday, 12 December 2012, amid sustained optimism for an agreement on upcoming US tax hikes and spending cuts, ahead of the conclusion of a Federal Open Market Committee that may see it undertake more asset buying. Closer home, the Central Statistical Organization (CSO) will unveil industrial output data for October 2012 today, 12 December 2012. Industrial production is seen expanding 4.7% in October 2012, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production declined 0.4% in September 2012.

Tuesday, December 11, 2012

India Banks, India Economy, Balakrishna Industries


 India Banks, India Economy, Balakrishna Industries

India Midcaps, Gold, Adani, Bharti Airtel


 India Midcaps, Gold, Adani, Bharti Airtel 

Fortis Healthcare


 Fortis Healthcare 

Federal Bank


 Federal Bank

Midcap Trade Ideas


 Midcap Trade Ideas

Grey Market Premiums - CARE, PC Jeweller, Bharti Infatel


Company Name
Offer Price
(Rs.)
Premium
(Rs.)
Kostak Price
Minimum
Application
Kostak
(Rs. 1 Lac
Application)
Kostak
(Rs. 2 Lac
Application)
CARE
700 to 750
170 to 175
Rs. : 950
Min. Application : 20 Shares
--
--
P. C. Jeweller
125 to 135
Rs. 5 Discount to Retailers
11 to 12
Rs. 1000
Min. Application : 90 Shares
--
--
BhartiInfratel
210 to 240
Rs. 10 Discount to Retailers
Rs. 4 Discount

--
Min. Application : 50 Shares
--
--