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Friday, January 13, 2012

Market gains on hopes of rate cut, easing euro-zone debt worries

The market edged higher last week on receding euro-zone debt worries. Positive sentiment was also supported by a steep decline in food inflation in late December 2011, which underpinned hopes that the Reserve Bank of India (RBI) will start cutting interest rates in the coming months to prop up slowing economy. A stronger-than-expected growth in industrial production in November 2011 also strengthened investors' sentiment.

The BSE Sensex rose 286.89 points or 1.81% to 16,154.62 in the week ended Friday, 13 January 2012. The S&P CNX Nifty rose 111.90 points or 2.35% to 4,866.

The BSE Mid-Cap index rose 6.14% and the BSE Small-Cap index rose 8.19%. Both these indices outperformed the Sensex.

Key Q3 results in focus

The results season has begun on a weak note, with IT bellwether Infosys cutting its earnings and revenue growth guidance in dollar terms for the year ending March 2012 (FY 2012). Analysts expect weak Q3 December 2011 results due to lower volume growth in a slowing economy, higher raw material costs and higher interest charges. The focus will be on guidance from the company managements on outlook for the remaining part of the year and for the next year.

TCS and HCL Tech unveil quarterly results on Tuesday, 17 January 2012. Jindal Steel & Power announces Q3 results on Wednesday, 18 January 2012. HDFC Bank, Hero MotoCorp and Bajaj Auto unveil Q3 results on Thursday, 19 January 2012. Reliance Industries, Wipro, ITC, Axis Bank, Jet Airways (India) and Hindustan Zinc unveil Q3 results on Friday 20 January 2012. JSW Steel reports its Q3 standalone results on Friday, 20 January 2012. UltraTech Cement, Asian Paints, Zee Entertainment Enterprises and Godrej Consumer Products unveil Q3 results on Saturday, 21 January 2012.

Coal India spurts as 25% wage hike within expectation

Coal India jumped 5.50% to Rs 343.40 at 13:56 IST on BSE on reports the company has agreed in-principle to increase the wages of its three lakh-odd mine workers by 25%, as against a 100% hike that the unions had demanded last year.

Meanwhile, the BSE Sensex was up 203.43 points, or 1.27%, to 16,240.94.

On BSE, 9.32 lakh shares were traded in the counter compared with average volume of 5.15 lakh shares over the past two weeks.

Nifty settles at 5-week high as euro-zone debt worries ease

Key benchmark indices edged higher as stocks rose across the globe on receding euro-zone debt worries. The 50-unit S&P CNX Nifty attained its highest closing level in five weeks. The barometer index, BSE Sensex, jumped 117.11 points or 0.73%, up about 105 points from the day's low and off about 100 points from the day's high. The market breadth was strong. BSE Mid-Cap and Small-Cap indices rose more than 1% each, with both these indices outperforming the Sensex. Index heavyweight Reliance Industries (RIL) edged lower in volatile trade. Reliance Anil Dhirubhai Ambani (ADA) group shares surged. World stocks rose as successful European bond auctions on Thursday, 12 January 2012, helped alleviate some of the worst concerns about the euro-zone's debt woes.

The Sensex has jumped 699.70 points or 4.52% so far in this month. From a 52-week high of 19,811.14 on 6 April 2011, the Sensex has lost 3,656.52 points or 18.45%. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 1,018.76 points or 6.73%.



Daily News Roundup - Jan 13 2012

Coal India Ltd has reached at a broad consensus with the labour unions to enhance workers' salaries by 25% in the forthcoming National Coal Wage Agreement (NCWA)-IX. (BL)

The Bombay High Court has dismissed the public interest litigation filed against Reliance Industries on the ground that the company has still time to submit its reply to the government. (ET)

Unitech and Telenor have agreed to set up two committees to manage expenses and projects undertaken by Uninor. (BL)

Friday the 13th….flying high at start!

The optimist pleasantly ponders how high his kite will fly; the pessimist woefully wonders how soon his kite will fall." - William Arthur Ward

It’s a period of enlightenment, peace, prosperity and happiness as Sankranti is celebrated with some regional variations across the country. The indices have not really been behaving like kites soaring against contrary wind. Despite decent results, the damage on Thursday was done by a weak Infosys guidance which sent the stock tumbling. The fact that clients were tightening their discretionary spending on technology sent IT stocks into a tailspin.

On the bright side, India’s industrial production grew by 5.9 per cent in November, with robust 6.6% growth in manufacturing output. Finance Minister Pranab Mukherjee said some ‘pro-active measures’ would now be needed to push the growth momentum, without specifying what he would do.

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Better trades for the day - Jan 13 2011

Commodity cues

US Crude Oil prices fell on Thursday in a late sell-off sparked by a report that a proposed European Union ban on imports of Iranian crude would be phased in over six months.

Stock in news:

RINL board okays setting up of Rs5,000 crore new units.

GMR, Andhra sign pacts for Rs33,000-crore projects.

Oil India in talks to buy asset in Africa.

LIC readies Rs10,000-crore war chest to lap up SUUTI stake.

RBI sold $2.9 billion in November, most in 30 months.

IDFC unveils round two of tax-saving bonds.

Yellow metal closes at a month high

Precious metal prices go up due to low dollar and firm crude prices

Precious metal prices ended moderately higher on Thursday, 12 January 2012 at Comex. Comex February gold futures prices on Thursday ended the U.S. day session firmer but down from the early-session high. Prices did hit another fresh four-week high earlier on. A lower U.S. dollar index and firmer crude oil prices earlier helped prices go up.

Gold for February delivery ended higher by $8.1 or 0.5%, to end at $1,647.7 an ounce on the Comex division of the New York Mercantile Exchange on Thursday. It was highest close for gold in a month. Last week, gold gained 3.2%. For the year 2011, gold rose 10%.

SGX Nifty Live Update - Jan 13 2012

4863.25 -5.50 (-0.11%)