Friday, February 24, 2012
Note this is upto 4PM ONLY
Gets bids for 29.01 crore shares
The initial public offer (IPO) of Multi Commodity Exchange of India (MCX), India's biggest commodity exchange by turnover, was subscribed a massive 52.75 times by 16:00 IST on third and final day of bidding for the IPO today, 24 February 2012. The IPO got bids for 29.01 crore shares.
MCX had on Tuesday, 21 February 2012, raised Rs 95.62 crore through issue of 9.26 lakh shares to 12 anchor investors at Rs 1,032 per share, the top end of Rs 860-1,032 per share price band for the initial public offer (IPO). The anchor investors are Wellington Management Company, Blackrock Global Funds Asian Dragon Fund, Deutsche Securities Mauritius, Tata AIG Life Insurance, Canara HSBC Oriental Bank of Commerce Life Insurance Company, ICICI Prudential Mutual Fund, Acacia Conservation Fund LP, Birla Sun Life Trustee Company, Kuwait Investment Authority Fund, Sundaram Mutual Fund, GMO Emerging Domestic Opportunities Fund and Credit Suisse (Singapore).
The market tumbled last week, snapping a seven-week rally, as investors booked profits as concerns mounted over rising crude oil prices.
The Sensex fell 365.78 points or 2% to 17,923.57 in the week ended 24 February 2012. The S&P CNX Nifty fell 135 points or 2.43% to 5,429.30.
The BSE Mid-Cap index tumbled 3.74% and BSE Small-Cap index slipped 3.65%. Both these indices underperformed the Sensex.
Higher oil prices spoiled investor sentiment. India imports about 80% of its total oil consumption and the rise in prices could worsen a widening trade deficit. Oil advanced for the seventh day in a row on Friday, 24 February 2011, the longest winning streak since January 2010, on signs of economic recovery from the US to Germany and concern escalating tension with Iran threatens crude supplies. Nymex crude oil for April delivery hovered at $108.31 a barrel in Asian electronic trading on Friday, 24 February 2012.
(Rs. 1 Lac
(Rs. 2 Lac
2.50 to 3 (Seller)
8 to 9
335 to 340
3300 to 3400
It is expected to be a subdued opening led by marginally higher Asian indices. Concerns may remain over rising global oil prices.
Headlines for the day
Tata Steel seeks shareholders' nod to up borrowing limit
IDFC PE to invest Rs150 crore in Staragri Warehousing
DB Realty sees no financial impact from Etisalat exit
Citi seeks $2.1 billion for stake in HDFC: sources
Kingfisher Airlines crisis: Banks reluctant to lend more
SBI to get Rs 7900cr from govt by next month-end
EGoM to meet today to review changes in gas policy
Weak dollar, follow through buying and Israel Iran tension push up prices
Bullion metal prices ended substantially higher on Thursday, 23 February 2012 at Comex. Comex April gold futures prices ended the U.S. day session with solid gains on Thursday, on good follow-through buying. Gold is being boosted this week by fresh safe-haven investment demand. The key factors were also in a bullish daily posture for the precious metals on Thursday, as the U.S. dollar index was lower and crude oil prices were solidly higher.
Gold for April delivery ended higher by $15 or 0.84%, to end at $1,786.3 an ounce on the Comex division of the New York Mercantile Exchange on Thursday. It reached a high of $1,789.3 during intra day trading.
Gold ended the month of January higher by 11%. For the year 2011, gold rose 10%.
Weak dollar and less than expected increase in supplies push prices higher
Crude prices ended at nine month highs on Thursday, 23 February 2012 at Nymex. Weak dollar and energy department's report showing that crude inventories rose little less than expected last week pulled up prices substantially higher on Thursday.
Light and sweet crude for April delivery rose $1.55 (1.5%) to $107.83 a barrel on the New York Mercantile Exchange on Thursday. It was highest close for crude prices since May 2011.
In the latest weekly inventory report, the EIA reported today that an increase of 1.6 million barrels in the nation's crude supplies for the week ended 17 February 2012. Market had expected an increase of about 1.7 million barrels. The EIA also reported gasoline supplies down by 600,000 barrels and distillates inventories down by 200,000 barrels. Market had expected gasoline stockpiles to fall 450,000 barrels and distillates stockpiles to drop 1.8 million barrels on the week.
Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 7 points at the opening bell.
Bank of Baroda said after market hours on Thursday, 23 February 2012 that a meeting of the board of directors of the bank will be held on 27 February 2012, to consider proposed preferential issue of equity shares in favour of Life Insurance Corporation of India (LIC)/ Mutual Funds (MF).
Key benchmark indices fell for the second straight day to reach their lowest closing level in more than a week on Thursday, 23 February 2012 as profit booking emerged after recent strong rally in share prices. The BSE Sensex shed 66.75 points or 0.37% to settle at 18,078.50, its lowest closing level since 14 February 2012.
Citigroup Inc, facing pressure to raise capital to comply with stricter norms, will sell its holding in India’s biggest mortgage lender, HDFC for Rs.100bn nearly tripling investments in five-and-a-half years.(ET )
Tata Communications , seeking to raise its profile around the globe, unveiled a technology partnership with Formula One motor racing, a further sign of the sport's growing appeal in emerging markets.(ET)
Air-conditioner makers such as LG, Godrej and Panasonic have reported up to 25% fall in their sales to dealers from January till this week—a period when companies usually dispatch almost half of their summer inventories.(ET)
The Adani Group plans to transform and streamline its businesses to focus on three core sectors — resources, logistics and energy — and will spend US$6bn to expand globally.(ET)
The F&O expiry session did live upto its billing with the key stock indices fluctuating through the day before closing marginally lower. The indices ended in the negative terrain, extending the losses from the previous session. The market witnessed fair amount of volatility with the NSE Nifty swinging nearly 80 points and the BSE Sensex gyrating almost 250 points during the day.
The Indian market opened higher but could not build on the early gains. The indices fell to the day's low in the afternoon trade before recovering later. However, the intraday pullback could not be sustained and the indices fell modestly after a late bout of oscillations linked to the derivative settlement.
Benchmark indices remained in the red in the 1st half of the trading session and struggled for direction. However, a fresh bout of buying saw the Nifty rise to day’s high of 5537 aided by long rollovers in Bank Nifty. VWAP based selling in the last half hour saw the Nifty erase ~44 points towards the end.
The real winners in life are the people who look at every situation with an expectation that they can make it work or make it better - Barbara Pletcher.
The seven-week winning streak of the Indian market is under some threat after two relatively weak sessions. The main indices could close the week in red for the first time this year. It is not necessarily a bad thing. A pause is always healthy after such a rise. For those who missed the rally, such corrections could be a blessing in disguise.
The market could consolidate in a sideways fashion in the near term. Most participants won’t want to take a chance in the run up to important domestic events next month. At the same time, uncertainties over the European debt crisis and geopolitical tensions persist.