Tuesday, August 14, 2012
The bauxite mining operation in Mali Hill in south Odisha’s Koraput district by Hindalco Industries Ltd has been stopped due to an agitation by the local tribal people. (BS) Oil & Natural Gas Corporation has decided to set up a Rs50bn urea manufacturing unit in North Tripura district in joint venture with a private company. (BL) Sun Pharma raised its offer price for the remaining shares of Israeli major Taro Pharma by as much as 60%. It will have to cough up about US$600mn for the remaining shares under the new offer. (BS) L&T has secured orders totalling over Rs20bn across business segments in the last 45 days. (BL)
Indian stock indices finished near day’s peak, spurred by growing speculation about impending policy measures from the Centre to give a fillip to the rapidly decelerating economy. Media reports say that the Government is contemplating kick-starting it’s disinvestment plan soon. The Finance Ministry is also reportedly considering plans to speed up the approval process for the core sectors of the economy, besides boosting a comatose primary market. An intraday recovery in the European markets also played a role in lifting the frontline indices towards the close of trade. Before the late spurt though, the key Indian indices had been essentially subdued. The BSE Sensex ended at 17,633, up 75 points or 0.4% over the previous close. It had earlier touched a day's high of 17,642 and a day's low of 17,522. It opened at 17,551.
Between stimulus and response there is a space. In that space is our power to choose our response. In our response lies our growth and our freedom. Viktor E. Frankl. The main Indian equity indices are seeking freedom from the narrow trading range they have got stuck in of late. While the opening could be a tad positive, the overall trading sentiment will hinge on inflation data for July.With the markets closed for the Independence Day on Wednesday and global markets too in a consolidation mode, investors could just choose to remain on the sidelines. Meanwhile, yoga guru Baba Ramdev’s protest against Black Money seems to be giving the embattled UPA regime a tough time. While there might not be any immediate political fallout, the Congress-led alliance could perhaps pay for its lapses in governance in the 2014 Lok Sabha polls.
Indian markets may open on a flat to positive note tracking mixed global cues. SGX Nifty is trading 6.50 points higher. Events for the day: Results: Opto Circuits (India), Essar Oil, Pipavav Defence and Offshore Eng, Piramal Healthcare, Reliance Infrastructure, Reliance Power, Unitech, HDIL, Hindalco Industries, Hindustan Copper, MMTC, IDFC, Videocon Industries, National Aluminium Co, Welspun Corp");'> Welspun Corp, Jain Irrigation Systems. Headlines for the day: BoB hikes interest rates on deposits by up to 1.75%. Cement cos told to comply with CCI's order within 90 days. Welspun Corp bags orders worth Rs819 cr.
The market is likely to open higher tracking mostly positive Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 6.50 points at the opening bell. Hindalco Industries, Reliance Infrastructure and IDFC unveil their Q1 results today, 14 August 2012. Hindalco Industries' US unit -- Novelis Inc. -- also unveils Q1 June 2012 results today, 14 August 2012. Most Asian shares rose on Tuesday ahead of more macro economic data figures from Europe and the United States later in the global day. On the macro front, inflation based on the monthly wholesale price index (WPI) is seen inching up to 7.4% in July 2012 from 7.25% (provisional) for the month of June 2012, as per the median estimate of a poll of economists carried out by Capital Market. The data is due for release at 11:30 IST today, 14 August 2012. Private sector steel major Tata Steel after market hours on Monday, 13 August 2012 said consolidated net profit dropped 88.81% to Rs 597.88 crore on 2.48% rise in total income to Rs 33821.20 crore in Q1 June 2012 over Q1 June 2011. Tata Steel said the Q1 June 2011 net profit was boosted by Rs 3361.92 crore due to profit on sale of non current investments.
Key benchmark indices edged higher with the market sentiment boosted by data showing continuation of buying of Indian stocks by foreign funds. The market breadth turned positive from negative in late trade. The barometer index, BSE Sensex, achieved its highest closing level in 21-1/2 weeks. The 50-unit S&P CNX Nifty scaled its highest closing level in nearly 19 weeks. The Sensex jumped 75.71 points or 0.43%, up close to 120 points from the day's low and off about 10 points from the day's high. Private sector banking major HDFC Bank scaled record high. Index heavyweight Reliance Industries (RIL) edged higher.