Wednesday, January 02, 2013
Indian equity markets traded in the positive throughout the trading session today albeit within a range. The indices began the day's proceedings on a cautious note. But buying activity across index heavyweights intensified thereafter pushing the indices higher. This momentum was sustained in the final trading hour as well and the indices closed well above the dotted line. While the Sensex today closed higher by 133 points, the NSE- Nifty today closed higher by 42 points. Both the BSE Mid Cap and the BSE Small Cap also did well and notched gains of 1% each. Gains were largely seen in oil and gas stocks and banking stocks. As regards global markets, Asian indices closed mixed today while most European indices have opened in the green. The rupee was trading at Rs 54.40 to the dollar at the time of writing. Pharma stocks closed mixed today. While Aurobindo Pharma, Ranbaxy and Cipla found favour, Glenmark and Cadila Healthcare closed in the red. As per a leading business daily, Aurobindo Pharma has received final approval from the US Food & Drug Administration (US FDA) to manufacture and market 'Rizatriptan Benzoate' Tablets in the strengths of 5 mg and 10 mg. This drug is the generic equivalent of Merck and Co's 'Maxalt' Tablets and is indicated for the acute treatment of migraine. The annual sale of the product was pegged at US$ 300 m for the twelve months ending March 2012 according to IMS. This product has been approved out of Unit VII (SEZ) formulations facility in Hyderabad. It must be noted that sales from the US formulations business grew by a robust 50% YoY during 2QFY13 led by many notable product approvals and launches during the quarter. The company now has a total of 171 ANDA approvals from the USFDA. With respect to Unit 6, it been inspected by the FDA with a few observations to which Aurobindo has responded and awaiting for the US regulator to get back. Hence, as of now an element of uncertainty exists as to when this issue will get fully resolved. Having said that, the US pipeline is robust and will be the key growth driver going forward. Auto stocks also closed mixed today. While the key gainers were Bajaj Auto and Hero Motocorp, Mahindra & Mahindra (M&M) and TVS Motors closed into the red. As per a leading business daily, Hero Motocorp has recorded a marginal increase of 0.2% in sales volumes for the month of December 2012. The company attributed this to the fact that since December is the last month of the calendar year, it usually witnesses sluggish growth in volumes as customers tend to postpone their purchases to the new year. Having said that, the period April-November 2012 too has not seen the auto industry perform too well. Two wheelers during this period witnessed a tepid growth of 4% and Hero Motocorp being the market leader has also been impacted. Infact, during the July-September 2012 quarter, the company reported an 11% fall in sales on the back of a 14% YoY drop in volumes. Meanwhile, the company intends to focus on marketing and customer engagement plans to fuel volumes for the remaining months of the fiscal.
Kingfisher Airlines rose 3.11% to Rs 14.90 at 12:33 IST on BSE on bargain hunting after the stock fell 9.52% in the preceding five sessions to Rs 14.45 on 1 January 2013, from a recent high of Rs 15.97 on 24 December 2012. Meanwhile, the BSE Sensex was up 145.23 points, or 0.74%, to 19,726.04. On BSE, 23.94 lakh shares were traded in the counter as against an average daily volume of 56 lakh shares in the past one quarter. The stock hit a high of Rs 14.95 and a low of Rs 14.04 so far during the day. The stock had hit a record low of Rs 7.01 on 13 August 2012. The stock had hit a 52-week high of Rs 30.90 on 7 February 2012. The stock had outperformed the market over the past one month till 1 January 2013, rising 8.81% compared with the Sensex's 1.25% rise. The scrip had, however, underperformed the market in past one quarter, falling 5.86% as against Sensex's 4.02% rise. The small-cap company has an equity capital of Rs 808.72 crore. Face value per share is Rs 10. Recent selling in the Kingfisher Airlines (KFA) shares was triggered by the company losing its permit to fly after a deadline to renew its suspended licence expired on Monday, 31 December 2012. Despite the expiry of its license, KFA clarified after market hours on Monday, 31 December 2012, that there is no cause for concern as the regulations permit license renewal within two years of expiry. KFA is confident of securing approval from the DGCA on the restart plan, license approval and reinstatement of its Air Operator Permit (AOP), the company added. KFA said in statement that it applied for renewal of its license as a scheduled carrier. Subsequently, KFA submitted a restart and rehabilitation plan to the DGCA and also attended meetings to respond to queries. The plan itself clearly states that the funding required would be provided by the UB Group. The DGCA has asked for certain no objection letters, which are in the process of being procured. Further, a few additional questions have been raised, which will be answered to the regulators satisfaction, the company said.
Royal Orchid Hotels surged 5.56% to Rs 45.60 at 11:22 IST on BSE after the company said its board has accorded its consent for making reference to the Corporate Debt Restructuring Cell for restructuring the debts of the company. The company made the announcement after market hours on Tuesday, 1 January 2013. Meanwhile, the BSE Sensex was up 155.17 points or 0.79% at 19,735.98. On BSE, 9,137 shares were traded in the counter as against average daily volume of 2,031 shares in the past one quarter. The stock hit a high of Rs 47.35 and a low of Rs 45 so far during the day. The stock had hit a 52-week low of Rs 41.50 on 4 June 2012. The stock had hit a 52-week high of Rs 59.20 on 3 March 2012. The stock had underperformed the market over the past one month till 1 January 2013, declining 2.92% compared with the Sensex's 1.25% rise. The scrip had also underperformed the market in past one quarter, sliding 11.29% as against Sensex's 4.02% gain. The small-cap company has equity capital of Rs 27.23 crore. Face value per share is Rs 10. Royal Orchid Hotels reported consolidated net loss of Rs 12.11 crore in Q2 September 2012, much higher than net loss of Rs 2.22 crore in Q2 September 2011. Net sales declined 0.8% to Rs 35.56 crore in Q2 September 2012 over Q2 September 2011. Royal Orchid Hotels operates 21 business and leisure hotels in 16 popular destinations.
The Indian indices extended their gains on Wednesday with the Nifty crossing the psychological 6000 mark intra-day; the last time it touched these levels was in Jan 2011. The Sensex managed to end above the 19,700 mark. The "fiscal cliff" crisis was averted after the House of Representatives approved a Senate bill that raised tax for the rich and delayed spending cuts. Asian Markets were higher on Wednesday. Hong Kong was up 1.91%, while Singapore gained 1.26% and Seoul rose 1.48%. Financial markets in Japan and China were closed for a public holiday. "Nifty continued Tuesday’s momentum and scaled past the 6,000 mark in intra-day trade as indices across Asia rallied on the US fiscal cliff being averted. Sentiment also improved after India's manufacturing activity surged to a six-month high in December 2012. Going ahead, we firmly believe the government policy measures will continue as downgrade fears have not been completely dispelled.This will provide further impetus to the recent rally", says Amar Ambani; Head of Research - IIFL. Wall Street ended higher as Dow Jones finished up 1.28%, the S&P 500 gained 1.69% and the Nasdaq Composite surged 2%. The House voted by 257 votes to 167 to pass the original bill with minority Democrats joining a smaller number of majority Republicans to pass the legislation. The dollar rose to 87.18 yen from 86.69 yen on Monday and the euro strengthened to $1.3272 from $1.3192. On oil markets, New York's main contract, light sweet crude for delivery in February gained 63 cents to $92.45 a barrel. Gold was at $1,677.72 at 0440 GMT compared with $1,658.90 late Friday. Finally, BSE Sensex closed 19714, up 133 points over the previous close. It had earlier touched a day's high of 19756 and a day's low of 19686. It opened at 19693. The NSE Nifty closed at 5,993 up 42 points over the previous close. It earlier touched a day’s high of 6,006 and a day’s low of 5982. It opened at 5,982. The BSE Small-Cap index and BSE Mid- Cap index was trading up at 1%. RIL, SBI, ICICI Bank, Tata Steel, Hero MotoCorp, Sun Pharma, ICICI Bank, NTPC, Bharti Airtel, Sun Pharma, BHEL, HDFC, ONGC, Dr Reddys Lab, Bajaj Auto, Tata Motors, Hindalco Inds, are among gainers in Sensex and Nifty. Infosys, TCS, Wipro, Coal India, HUL, M&M were among losers in Sensex and Nifty. Oil and Gas, HC, PSU, Power, Realty, Metal, Teck, Oil and Gas, Consumer Durables, Bankex, Capital Goods, Metal, are the gainers. Realty, IT, FMCG indices are the losers. The advance decline ratio was in favour of the bulls. 1766 stocks advanced against 1184 declining stocks. Only 151 stocks remained unchanged. The INDIA VIX on NSE shot up down by 0.21% to end at 13.66. It hit a day’s high of 13.91 and day's low of 12.99. Stocks which hit 52-week high during the week were Reliance Cap, Hinduja Vent, Agro Tech Foods, LIC Housing Fin, MRF. Stocks which hit 52 week low during the week were Autoriders Fin, EIH, Geodesic, BCL Forgings, Indiaco Vent. Other Corporate News The seasonally adjusted HSBC Purchasing Managers’ Index posted 54.7 in December, up from 53.7 in November. Finance Minister P. Chidambaram speaking on 14th Finance Commission hinted at a possible hike in gold import duty. FM is mulling over the option as oil and gold import bill weigh heavy on the current account deficit situation of the country. Current account deficit has widened to 5.4% in the September quarter.
Key indices ended near day's high as the U.S. House of Representatives approved a deal on the fiscal cliff, sparking broad-based buying. The Sensex rose 133 points while the Nifty shut shop 42 points higher. Headlines for the day: Elecon Engg bags order from NMDC TRAI slashes cable landing charges by 50% BofA-ML revises target price of Tata Motors Union Bank alters FCNR deposits rates Indian Indices: Today, the Indian equities witnessed an extremely strong trading session, the Nifty hit 6000 mark for the first time in 2013, while the Sensex rallied over 19700 led by buying interest in rate sensitive stocks and other sectors. The Indian markets carried forward yesterday's rising trend and ended the second trading session of January 2013 on a strong note. The market breadth was also encouraging for the investors. The total market turnover was at the highest level of Rs3.92 lakh crore. The NSE Nifty touched 23-month high and closed at highest level since January 07, 2011. Movement of the Indian indices for the day: The Indian markets closed on a positive note in today's trade owing to cheerful trading in global markets. Today, the Indian indices stayed higher throughout the day owing to gains in index heavyweights which helped the markets to remain on an upbeat mode. All the sectors were on the buyer's radar except IT and FMCG. The key Indian stock indices accelerated further in the late morning deals, with the NSE Nifty hovering around the 6,000 mark and the BSE Sensex up over 150 points amid broad-based buying. Later, the Nifty touched a high of 6,006, breaching the 6,000 mark for the first time in two years and the Sensex saw a high of 19,757. The rally in Indian Indices also came from strong European cues. The broader markets too ended trade on a positive note. The BSE Midcap index rose by 0.56%, while the BSE Smallcap index was up by 0.90% in trade today. Adding further, the Nifty today breached the 6000-mark for the first time in nearly 23 months on broad based buying after the US House of Representatives approved a rare tax increase, averting the fiscal cliff. The BSE Sensex ended above 19,700; highest since January 07, 2011. On currency front, the Indian rupee rose by 37 paise to trade at fresh two-week high of Rs54.31 against the US dollar in early trade at the Interbank Foreign Exchange. The rise was due to increased dollar selling by exporters and banks amid sustained foreign capital inflows. The Sensex ended at 19714.24, up by 133.43 points, while the Nifty shut shop at 5993.25, up by 42.40 points. Following are the stocks/ sectors which were in news today: 1. Bharat Heavy Electrical Limited ended 2.38% higher as the government imposed 35% safeguard duty on electrical insulators imported from China. 2. Bajaj Auto gained 3.07% after the company said that its total sales in December increased 13% year-on-year to 343,946 units, due to higher demand for motorcycles and rise in exports. 3. KEC International secured new orders worth of Rs1,511 crore in its transmission, power systems and cable business from India, Oman, Nepal and Americas. The stock closed 5.71% higher in trade today. 4. PC Jeweller surged 6.27% in today’s trade, extending its previous day’s over 10% rally on the Bombay Stock Exchange. Market sentiment: The market breadth stood in favor of advances. Of the 3101 stocks traded on the BSE, 1797 (57.95%) rose, 1166 (37.60%) fell and 138 (4.45%) stocks remained unchanged. Sectoral & stock screening: All the 13 sectoral indices closed in the green zone except IT and FMCG which were the only losing sectors down by 0.07% and 0.26% respectively. Top Gainers- BSE CD up by 1.65%, BSE CG rose by 1.40%, BSE Oil&Gas was up by 1.29% Among 'A' group stocks, top three gainers were- Gitanjali Gems rose by 8.09%; Videocon Industries up by 6.47% and JP Infratech surged by 5.73%. Top three losers were- Torrent Power declined by 1.99%, Colgate Palmolive was down by 1.90% and IPCA Labs fell by 1.83%. Global signals: Asian stock markets rose on Wednesday after the US House of Representatives passed a deal to stave off the so-called fiscal cliff. European shares rose across the board at the start of the new year after US lawmakers approved a deal to prevent a fiscal crunch that had threatened growth in the world's largest economy. US stocks were poised to rally on Wednesday in their first session of the New Year after lawmakers passed a bill preventing huge tax hikes and spending cuts that threatened to jeopardize economic growth.
Turnover surges Nifty January 2013 futures were at 6033.95, at a premium of 40.70 points over spot closing of 5993.25. Turnover on NSE's futures & options (F&O) segment surged to Rs 95416.87 crore from Rs 74896.83 crore on Tuesday, 1 January 2013. State Bank of India (SBI) January 2013 futures were at 2468, at a premium over spot closing of 2451.90. United Spirits January 2013 futures were at 2001.50, at a premium over spot closing of 1984.90. Reliance Industries (RIL) January 2013 futures were at 852.40, at a premium over spot closing of 844. In the spot market, the 50-unit S&P CNX Nifty advanced 42.40 points or 0.71% to settle at 5,993.25, its highest closing level since 6 January 2011. The January 2013 derivatives contracts expire on 31 January 2013
Key benchmark indices edged higher for the second day in a row as stocks rose across the globe after the House of Representatives on Tuesday, 1 January 2013, passed a bill to undo much of the fiscal cliff threatening the US economy which is the world's biggest economy. The barometer index, BSE Sensex and the 50-unit S&P CNX Nifty, both, attained their highest closing level in almost two years. The Sensex jumped 133.43 points or 0.68%, off close to 40 points from the day's high and up about 30 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Indian stocks rose for the second straight day. From a recent low of 19,426.71 on 31 December 2012, the Sensex has risen 287.53 points or 1.48% in two trading sessions. From a 52-week low of 15,664.91 on 6 January 2012, the Sensex has risen 4,049.33 points or 25.84%. The Sensex advanced 86.81 points or 0.44% in December 2012. The barometer index jumped 3,971.79 points or 25.69% in calendar 2012.
The Indian markets are expected to open in the green zone tracking positive Asian cues. SGX Nifty is also trading 74.50 points higher. Events for the day: India December Markit Manufacturing PMI. Stock in news: Hero MotoCorp posts marginal rise in sales. OBC cuts interest rate on home loans by 0.1%. NMDC in talks for coking coal mines in Russia, Mozambique.
The market may open firm on positive Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could surge 74.50 points at the opening bell. Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for December 2012 today, 2 January 2013. Asian stocks edged higher on Wednesday, 2 January 2013 as investors snapped up shares across sectors as the U.S. House of Representatives was set to vote on the Senate's approval for a bill on the fiscal cliff. Reliance Industries (RIL) on Tuesday, 1 January 2013, said it has bought back 4.62 crore shares for about of Rs 3358.91 crore till 24 December 2012 under its ongoing share buyback program. RIL has set maximum buyback price of Rs 870 per share. The company has set aside Rs 10440 crore for share buyback. The buyback program opened on 1 February 2012 and closes on 19 January 2013. Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles in December 2012 were 65,582 vehicles. The company's domestic sales of Tata commercial and passenger vehicles for December 2012 were 61,700 units.
Adani Power has requested the Coal Ministry to grant long-term coal linkage for its proposed thermal power plant in Maharashtra. (BL) Indorama Ventures plans to expand its annual US polyethylene terephthalate (PET) production capacity by 540,000 tonnes at an undisclosed brownfield location. (BL) Gujarat Ambuja Exports Ltd has started trial run production of its 750 tonnes per day (TPD) new maize processing, derivatives and other value-added products processing unit in Haven district of Karnataka. (BL) Aurobindo Pharma Ltd has received final approval from the US Food & Drug Administration to manufacture and market Rizatriptan Benzoate tablets. (BL)
"Let go over a cliff, die completely, and then come back to life - after that you cannot be deceived" - Zen Proverb The New Year has got off to a happy start and amidst all the drama surrounding the fiscal cliff situation, indices are clocking gains world over. The positive action is set to continue in our market too and the indices could see gains at start again. The Nifty Futures managed to cross the 6,000 mark. Positive momentum has set in as the Nifty achieved a breakout from the trading range of 5850-5930 closing near the 5950 levels. Global cues remain encouraging with Asian markets too joining the party.
RIL was the biggest drag on Nifty in last 5 years. The year is over now but we thought we’ll leave you with some tit-bits on the year that has gone by. Sure you may like to share your own bit of memorable moments. Before we look back at 2012, a little bit of trivia on 2013. It’s 25yrs since we got a year with all 4 digits being different (first year since 1987). Best Sectoral Performance of 2012: Real Estate : +58% in spite of <27% return from 42% of the index..(DLF/GPL/PARSV were the laggards). 2nd Best Index : FMCG +50%... Year of Broader mkt recovery: 53 stocks gave more than 100% return in 2012 (range being +800% to -90%). Among these, the only names with more than 20 BUYS at the start of 2012: Shree Cement / Sobha Developers… Biggest Drag on Nifty in last 5yrs: RIL – the darling of investors once upon a time. RIL (-313pts) vs Nifty -175pts; and ITC (+330pts). Biggest Drag on Nifty in Last 3yrs: RIL (-135pts) vs Nifty +735pts; and again ITC (+285pts). Worst Performing stock in BSE 100: Infosys - Had less than 10% SELL Recos in 2007 (one among being IIFL’s first print report on the sector "Juiced"). 41 BUYS as of 2012 beginning is now down to 30 BUYs as of 2013 start; for a stock well covered by 73 SELL Side Analysts…more than Apple with just ~20% of the latter's mkt cap.. 3yrs of Polarised Mkt: Top 10 performers: ITC HDFC Bank HDFC ICICI Bank Hindustan Unilever TCS Tata Motors Mahindra Sun Pharma Axis Bank Top 10 Drags: RIL BHEL STLT TATA INFY JSP SAIL RELI NTPC RCOM These stocks contributed 480 pts to the decline even as Nifty rallied +735pts. How much FII money Indian Equities need to perform in 2013: 2007: 74% USD return @ $17bn inflow; 2012: 24% USD return @ $24bn inflow ($4.2bn inflow in Dec for a flat market) Best NPA recovery rate among Banking Stocks: Karur Vysya, 2002-2012, 81% of NPAs recovered. 2002-2012: returns compounded at a faster rate than HDFC Bank. Still will give 30% return even if it goes to 2x P/B.
Global Cues: The European shares and US stocks remain closed on Tuesday (January 01, 2013) account of New Year holiday. The Asian shares are trading higher on Wednesday (January 02, 2013). SGX Nifty down by 13 points. Events for the day: India December Markit Manufacturing PMI. Stock in news: Hero MotoCorp posts marginal rise in sales. OBC cuts interest rate on home loans by 0.1%. NMDC in talks for coking coal mines in Russia, Mozambique.
Key benchmark indices surged on the first trading session of calendar 2013 after the US Senate approved an agreement early on Tuesday struck hours earlier by the White House and Senate Republicans to keep the world's biggest economy from falling off the fiscal cliff. The 50-unit S&P CNX Nifty attained its highest closing level in almost two years. The barometer index, BSE Sensex, attained its highest closing level in more than 20 months. The Sensex jumped 154.10 points or 0.79%, off close to 40 points from the day's high and up about 70 points from the day's low. The market breadth, indicating the overall health of the market, was strong. BSE Small-Cap and Mid-Cap indices, both, outperformed the Sensex. From a 52-week low of 15,358.02 on 2 January 2012, the Sensex has risen 4,222.79 points or 27.49%. The Sensex is off 31.37 points or 0.15% from a 52-week high of 19,612.18 hit on 11 December 2012. The Sensex advanced 86.81 points or 0.44% in December 2012. The barometer index jumped 3,971.79 points or 25.69% in calendar 2012.