Thursday, July 12, 2012
The domestic economy is passing through a rough phase and hence monsoon season becomes even more crucial as a weak monsoon could have a cascading impact on inflation, rural demand and hydro electricity generation. In order to gain a more informed perspective on the progress of monsoon so far, we organized a call with Mr. Jatin Singh, a weather expert and Founder CEO of Skymet Weather Services, a pioneering private sector initiative in weather forecasting services. Below, we present a summary of the conference call and further, key excerpts: Drought seems realistic According to Skymet, drought is becoming imminent. The agency forecasts about 60% probability of a drought (20% below LPA in full season) and 90% probability of below normal rainfall (90-94% of LPA). Overall, Skymet expects a 20% below LPA season compared to 23% below LPA in 2009. The reservoir situation also looks bleak. Of the 84 reservoirs in the country, 74 are running at 40% capacity. One of the major reservoirs in Himachal Pradesh that caters to Punjab is currently running at just 17% capacity.
BEML Ltd promised to work in joint venture with Coal India Ltd and Damodar Valley Corporation to reopen the closed mining machinery facility of Mining and Allied Machinery Corporation (MAMC) in Durgapur. (BL) Reliance Power has tied up loans of US$ 1.1 bn from three Chinese lenders for its upcoming 3,960 MW Sasan ultra mega power project in Madhya Pradesh. (BL) Jindal Group plans to set up a Rs.15bn technical textile unit in Nashik in North Maharashtra. (BL) Mortgage lender HDFC will find a buyer for the debt-laden Kingfisher Airlines’ non-core assets — Kingfisher House in Mumbai and the promoters’ villa in Goa. (BL)
After a marvelous Monday, the main Indian stock indices were unable to capitalize on the momentum, as market participants preferred to book profit ahead of IIP data and important results from IT titans, Infosys and TCS on Thursday. Overnight losses in the US markets and weakness in the Asian indices dragged the Sensex and Nifty at opening bell. Markets remained under pressure throughout the day, with the sentiment getting further hit after a weak start to the European markets. The Sensex ended at 17,489, down 129 points or 0.7% from the last close. It had earlier touched a day’s high of 17,582 and a day’s low of 17,466. It opened at 17,553. The NSE Nifty settled at 5306, down 39 points or 0.7%. It touched a day’s low of 5,300 and day’s high of 5,336. Hindalco, Reliance Infra, Tata Motors, Wipro, Siemens, DLF, Sterlite, Reliance Industries and Bharti Airtel were the notable losers on the Sensex and the Nifty today.
Performance stands out like a ton of diamonds. Non performance can always be explained away. - HS Geneen. The stage is all set to view the results of the performance of technology bellwethers – TCS and Infosys. It’s a quarterly affair, sure. But these remain the triggers for near term direction on the sectors and companies. Markets will also have to contend with IIP data for May. Infosys will be among the first off the blocks. It is likely to scale back its dollar revenue guidance for FY13 while upgrading rupee EPS due to currency fluctuations. TCS is expected to announce its numbers after the close of trade. TCS’ margins could drop by 50-60 bps due to salary hikes.
The Asian picture looks bad start so the opening on the Dalal Street is expected to be weak. SGX Nifty is also trading 24 points lower. Events for the day: Results: Infosys, TCS. IIP data for May 2012.
The market may edge lower on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 31 points at the opening bell. IT giants -- Infosys and TCS -- unveil Q1 results today, 12 July 2012. Asian stocks fell for a sixth day on Thursday after a lack of clarity from the minutes of US Federal Reserve's June policy meeting on future easing measures from the Fed. JSW Steel turns ex-dividend today, 12 July 2012, for dividend of Rs 7.50 per share for the year ended 31 March 2012 (FY 2012). M&M turns ex-dividend today, 12 July 2012, for dividend of Rs 12.50 per share for FY 2012. MRPL turns ex-dividend today, 12 July 2012, for dividend of Rs 1 per share for FY 2012. Mahindra Satyam after trading hours on Wednesday announced the launch of a new accelerated framework "Apparel & Fashion xPress" for Oracle Retail implementations. Apparel & Fashion xPress caters to specific business functionality requirements of mid-market fashion and apparel retailers in the areas of global sourcing and procurement.
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price ** 11/7/2012 533022 20 Microns PRADIPKUMAR KALYANBHAI JIVANI B 82422 92.00 11/7/2012 533022 20 Microns PRADIPKUMAR KALYANBHAI JIVANI S 81722 92.21 11/7/2012 526347 ACCLAIM IND NARENDRA KUMAR RANGA B 35000 28.50 11/7/2012 526347 ACCLAIM IND ABHISHEK MEHTA S 200000 28.55 11/7/2012 502330 AP Paper CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 225706 332.46 11/7/2012 502330 AP Paper CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 225706 332.18
The month of June was a joyous one for the D-Street. Bulls were back with the markets surging nearly 7% on global support and persistent buying across the board. Major Headlines IIP for April at 0.1% vs -3.5% in March May Inflation at 7.55% versus 7.23% in April RBI leaves key rates unchanged India’s May CPI inflation remains unchanged at 10.36% India HSBC May services PMI jumps to 3-month high FDI in India slips 41% to $1.8 bn in April RBI takes steps to boost economy by raising ECB limits India's fiscal deficit for April-May at $25.3 bn
Key benchmark indices edged lower in choppy trade after the director-general of state-run India Meteorological Department (IMD) L.S. Rathore said El Nino, which is usually associated with lower rainfall, will likely emerge in August 2012. Weakness in European shares also hurt sentiment adversely on the domestic bourses. The barometer index, BSE Sensex, lost 129.21 points or 0.73%, off close to 95 points from the day's high and up about 25 points from the day's low. The market breadth was negative. European shares were mostly lower on Wednesday on concern that slowing global growth is pulling down company earnings. The Sensex has risen 59.16 points or 0.33% in this month so far (till 11 July 2012). The Sensex has jumped 2,034.22 points or 13.16% in calendar 2012 so far (till 11 July 2012).