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Monday, March 19, 2012

Daily News Roundup - March 19 2012

NTPC is implementing three hydel projects with a total capacity of 942 MW in Uttarakhand. (BL)

Essar Steel is set to commission a pellet unit in a week in Odisha to pave the way for setting up of its proposed 6 mtpa integrated steel plant. (ET)

Reliance Communications controlled FLAG Telecom has filed a prospectus in the Singapore Stock Exchange to list and divest 75% stake in the submarine cables business for US$1.25-1.5bn. (BS)

ONGC has advanced the development of its C-Series gas fields in the West Coast, which will help it raise gas output. The advancement will help realise production from the fields starting pre-monsoon 2014 instead of 2018 planned earlier. (BL)

Sensex sinks as FM disappoints with Union Budget

It was expected to be a volatile session and the market didn't disappoint on that score with the key indices fluctuating through the Budget speech before slumping in late afternoon trade. Today's eventful trading session came on the heels of a bad session on Thursday. As if the disappointment of the RBI policy review was not enough, the market players had to contend with a Union Budget that fell short of expectations.

The sentiment gyrated wildly today as the Finance Minister went about his job of announcing various Budget proposals. He finished his Budget speech at ~1:00 pm. At that point, the market was trading positive but suddenly surrendered all of the day's gains post 2:00 pm on the back of some selling pressure seen in the Banking stocks, Oil & Gas and Power stocks.

Back to narrow range!

The budget evolved from a management tool into an obstacle to management- Anonymous.

The Union Budget is now out of the way and the nation obviously seems to be much happier with Sachin’s long awaited 100th ton and Kohli’s master stroke vs. arch rivals Pakistan than with the Budget per se. The timing of the Union Budget would have given most people ample time to analyse and dig deep into the fine print. The reactions have been mixed – from mildly positive to outright disappointment. But, largely the Budget is likely to be neutral for equities.

The bond market could behave slightly differently, given the skepticism over fiscal deficit estimate and the large borrowing programme. The rupee will be at the mercy of crude oil prices, overseas markets and fund flows.

Flat to positive opening likely on mixed cues

The Indian markets may start the week on a flat to positive note owing to mixed cues. FII flows will decide market direction for the day.

Headlines for the day

TRAI moves court against Loop Mobiles on MNP.

ONGC plans capex of Rs33K crore for next fiscal.

Budget imposes 1% TDS on property sales.

CIL board may meet this week for new fuel supply pact

ONGC gives 30% dividend, govt nets Rs888 crore.

Steel prices to rise by up to Rs1K on excise duty hike.

Red metal tarnishes

Prices gain 0.5% on a weekly basis

Copper prices slipped on Friday, 16 March 2012 at Comex backing off the highest level in more than two weeks after mixed economic data in the United States and a third consecutive weekly build in Shanghai inventories eroded early bullish sentiment. Investors also kept weighing an improving global economy against more signs of sluggish demand in China, which accounts for nearly 40% of copper consumption.

London Metal Exchange (LME) three-months copper fell $55 to end at $8,510 a tonne, reversing from an earlier session peak at $8,690.

Market may open flat to slightly higher

The market may open flat to slightly higher as most of the Asian stocks edged higher. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 7.50 points at the opening bell.

PSU OMCS will be in focus as oil marketing companies are reportedly considering an increase in the prices of automobile and cooking fuels as early as next week after the budget session goes into a break on March 30. State-owned oil firms are looking at an increase of between Rs 4-5 a litre on petrol, Rs 3-4 a litre on diesel and Rs 50-75 on a cylinder of cooking gas (LPG).

Key benchmark indices fell for the second straight day to reach their lowest closing level in more than one week on Friday, 16 March 2012 after Finance Minister Pranab Mukherjee in Union Budget 2012-13 set only modest targets for trimming a ballooning fiscal deficit and as there was lack of any big-bang reform announcement in the Budget. The BSE Sensex lost 209.65 points or 1.19% to 17,466.20, its lowest closing level since 7 March 2012.

Crude prices move up at Nymex following positive economic data and weak dollar

Prices register 0.3% weekly loss

Crude-oil prices climbed on Friday, 16 March 2012 at Nymex. Light and sweet crude oil moved up at Nymex following positive economic data and weak dollar.

April futures for light, sweet crude rose $1.95, or 1.9%, to $107.06 a barrel on the New York Mercantile Exchange. Crude-oil futures had faced a more than 1% decline for the week, but Friday's advance reduced the weekly loss to 0.3%.

Budget Reports

Budget Reports

Weekly Market Report - March 19 2012

Weekly Market Report - March 19 2012

Budget Highlights

Budget Highlights