Wednesday, May 30, 2012
The market today ended trade in red on falling rupee and GDP concerns. The Sensex ended at 16,312.15, down 126.43 points while the Nifty fell 39 points. Major Headlines: IT dept freezes bank a/cs of KFA M&M Q4 net profit jumps by 39% United Spirits cons Q4 net profit slips by 67% Colgate Palmolive Q4 net profit slips by 14%
At Rs 160.65 on BSE Shares of Speciality Restaurants settled at Rs 160.65 on BSE, a 7.1% premium over initial public offer price of Rs 150 per share. The equilibrium price of Speciality Restaurants during the one-hour auction in pre-open session was set at Rs 153, a premium of 2% to the initial public offer (IPO) price of Rs 150. In light of high volatility and price movement observed on first day of trading, market regulator Securities & Exchange Board of India (Sebi) had vide its circular dated 20 January 2012 put in place a framework of trade controls for IPO and re-listed scrips. Price bands for issue size up to Rs 250 crore for the first day in the normal trading session will be 5% of the equilibrium price. Additionally, the trading shall take place in trade to trade segment for first 10 days from commencement of trading. For issue size greater than Rs 250 crore, the applicable price bands for the first day are fixed at 20% of the equilibrium price.
Key benchmark indices dropped in choppy trade as stocks fell across the world stocks amid incessant worries about Spain's finances and the fallout from the European debt crisis. The barometer index, BSE Sensex, lost 126.43 points or 0.77%, up about 20 points from the day's low and off close to 120 points from the day's high. The market breadth was weak. BSE Mid-Cap and Small-Cap indices fell over 1% each. The Sensex has declined 1,006.66 points or 5.81% in May 2012 so far (till 30 May 2012). The barometer index has gained 857.23 points or 5.54% in calendar 2012 so far (till 30 May 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 1,176.29 points or 7.77%. From a 52-week high of 19,131.70 on 8 July 2011, the Sensex has lost 2,819.55 points or 14.73%. Coming back to today's trade, Tata Motors tumbled nearly 12% as the company's American Depository Receipt (ADR) fell almost 3% on Tuesday, 29 May 2012, after the company reported Q4 March 2012 results. The stock declined on heavy volumes. M&M rose in choppy trade after strong Q4 results. Banks stocks fell across the board. GAIL (India) declined on weak Q4 results. ONGC dropped on concerns about the company's high subsidy burden. Index heavyweight Reliance Industries (RIL) edged higher in volatile trade. Sun Pharmaceutical Industries gained after strong Q4 results.
Indian Oil Corporation, Oil India, Reliance Communications, Reliance Infrastructure, Bharat Forge, Voltas, Coal India
Indian Oil Corporation, Oil India, Reliance Communications, Reliance Infrastructure, Bharat Forge, Voltas
Prices end near the daily low on a late-session downside move Bullion metal prices ended lower on Tuesday, 29 May 2012 at Comex. Prices ended the U.S. day session modestly lower and near the daily low on a late-session downside move. The U.S. dollar index rallied, the Euro currency slumped and crude oil prices weakened in the immediate wake of a credit rating downgrade for Spain. Gold for June delivery ended lower by $20.20 or 1.3%, to end at $1,548.7 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday. Gold for August delivery, which is the most-active contract, fell $20.20, or 1.3%, to settle at $1,551 an ounce. On Tuesday, silver prices for July delivery ended lower by 60 cents or 2.1% at $27.79.
The marker may edge lower in early trade on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 32.50 points at the opening bell. GAIL (India) and DLF unveil Q4 results today, 30 May 2012. Mahindra & Mahindra (M&M) and Jaiprakash Associates also unveil FY 2012 results today. Tata Motors announced after market hours on Tuesday that consolidated net profit jumped 136.35% to Rs 6234 crore on 44.14% rise in total income to Rs 51066.48 crore in Q4 March 2012 over Q4 March 2011. Tata Motors' sales (including exports) of commercial and passenger vehicles for FY 2011-12, stood at 926,353 units, representing a growth of 10.7 % as compared to the corresponding period last year. In the domestic market, the company's commercial vehicles sales for the Quarter ended March 31, 2012, stood at 155,672 units, an increase of 16.2% over the corresponding period last year. The commercial vehicles sales during FY 2011-12 increased by 15.7 % to 530,204 units, as compared to the corresponding period last year. The company's market share in commercial vehicles was 59.4% for FY 2011-12.
In yet another senior-level exit at Infosys, Ritesh Idnani, senior vice-president and chief operating officer of its BPO arm, has resigned. (ET) Infrastructure conglomerate GVK has received environmental clearance from the Queensland government in Australia for its Alpha coal and rail project, for which it has set aside US$10bn. (ET) Gitanjali Group is planning to invest up to US$75mn in increasing its number of outlets in the UAE to 110 within two years. (ET) Shareholders of Escorts have approved a controversial restructuring proposal that envisages the merger of one subsidiary and two affiliates with the tractor maker. (ET)
The BSE Sensex ended at 16,438, gaining by 0.13% or 21 points. Market participants heaved a sigh of relief as a boring trading session finally came to an end with the key indices finishing nearly flat. After opening with a slight positive bias, the Indian markets did show some strength in the first half but the upswing was short lived, as the frontline indices erased all the day's gains in the second half. The key indices lost steam after the European markets surrendered some of the early gains. The BSE Sensex ended at 16,438, gaining by 0.13% or 21 points. It had earlier touched a day’s high of 16,544 and a day’s low of 16,410. It opened at 16,500. The NSE Nifty settled at 4990, almost unchanged. It touched a day’s low of 4,982 and day’s high of 5,020. HCL Tech, Cairn, Wipro, Coal India, Ranbaxy, Maruti, Bank of Baroda, TCS, Bajaj Auto and ONGC were among the notable leaders on the Sensex and the Nifty. ACC, BPCL, IDFC, SAIL, Grasim, ITC and Sterlite Industries were the notable losers on both the indexes. The INDIA VIX on the NSE gained by 1.6% to close at 24.03. It hit days high of 25.33. It hit a low of 22.70.
Conflict is inevitable, but combat is optional. - Max Lucade. Amid all the external and internal conflicts, our usually soft-spoken and mild-mannered PM has turned combative. Dr. Manmohan Singh has thrown the gauntlet at Team Anna to prove his guilt in the controversy over the allocation of coal blocks. The PM says he is ready to pull the plug on his political career if proven wrong. Another report shows UPA II may not be able to take any further bold measures in light of the stiff political resistance from all sides. The economic environment remains challenging in India; sales of AC makers and lifestyle retailers have turned weak. At the same time, inflation is unlikely to soften materially as can be gauged from reports of yet another price hike by few car makers. The Indian markets will take a cue from Q4 GDP data due on Friday. But, before that we have to contend with the F&O expiry on Thursday and plenty of results.
Indian markets may open on flat to negative note tracking weak Asian cues and on account of SGX Nifty which is trading 26.50 points lower. Events for the day: New Listings: Speciality Restaurants, Monarch Health Services. Results: DLF, Pipavav Defence and Offshore Eng, Financial Technologies (India), Gail (India), Mahindra & Mahindra, Rashtriya Chemicals & Fertilizers, Tata Chemicals, Havells India, Housing Development & Infrastructure Ltd, United Breweries, Colgate-Palmolive (India), Jaiprakash Associates. Headlines for the day: CCI approves RIL stake purchase in Network18 group. Loop Telecom approaches TDSAT seeking refund of licence fee. SBI to approach Moody's for an upgrade. BPCL, HPCL, IOC slide as govt rules out diesel price hike.
Credit rating downgrade on Spain renewed concerns over oil demand Crude prices ended mildly lower on Tuesday, 29 May 2012 at Nymex. Prices dropped for first time in three sessions as credit rating downgrade on Spain renewed concerns over oil demand from the euro zone and buoyed the U.S. dollar. Weaker than expected consumer confidence data at Wall Street also affected prices. Light and sweet crude for July delivery fell $0.10 (0.1%) to $90.76 a barrel on the New York Mercantile Exchange on Tuesday. In the currency market on Tuesday, the U.S. dollar index, which weighs the strength of the dollar against a basket of six currencies rose by 0.4%. The market place was tentative early Tuesday, following a long U.S. holiday weekend, and got more uneasy on the Eagan Jones credit downgrade for Spain. The Euro currency fell to a fresh nearly two-year low on the ratings downgrade news. The latest European Union debt and financial crisis developments also saw the large Spanish bank, Bankia, given significant bailout money over the weekend.