Monday, January 14, 2013
The global cues looks supportive and may lead to a positive opening for the Indian markets. SGX Nifty is also trading 16 points higher. Events for the day: Release of monthly inflation data. Results: TCS, Muthoot Finance. Stock in news: Bharti Airtel seeks alternative freuency band for 3G in J&K. JLR to add nearly 800 new jobs at UK plant. Gail plans Rs9,000 crore capex in FY 2014. Indian Indices: Today, the opening of the Dalal Street will be on a positive note led by supportive global cues. SGX Nifty is also trading 16 points higher. The December 2012 monthly inflation numbers are scheduled to be released today. Investors will closely watch the numbers as it can have a bearing on the RBI's decision making process for its third-quarter monetary policy review on January 29, 2013. Results: TCS, Muthoot Finance. On Friday (January 11, 2013), the Sensex closed at 19663, up by 0.09 points while the Nifty settled at 5951, slipping by 17 points. Global Indices: Asian markets rose on Monday (January 14, 2013). Japanese markets are shut today. European shares stalled on Friday (January 11, 2013), with weak economic data from the United States and concerns about the scope for more stimulus in China giving investors the excuse to lock in profits on a new year rally to multi-month highs. US stocks were little changed, after the Standard & Poor’s 500 Index rose to a five-year high, as banks slumped and China’s inflation grew. Daily trend of FII/MF investment in equities: The FIIs have been the net buyers Indian stocks to the tune of Rs281.70 crore on January 10, 2013. The domestic investors sold Indian shares worth a net of Rs96.00 crore on January 09, 2013. The data is as per the SEBI website.
On Friday (January 11, 2013), the government said it has approved 14 foreign direct ibvestment ( FDI) proposals worth about Rs1,311 crore including that of Hindustan Port. Now going into detail, the Finance Ministry said in a statement that based on the recommendations of Foreign Investment Promotion Board ( FIPB) in its meeting held on December 21, government has approved 14 proposals of foreign direct investment amounting to Rs1,310.60 crore approximately. FIPB has deferred six and rejected three proposals. Those rejected include proposal of Mumbai-based Fullife Healthcare for induction of foreign equity. The proposals which were deferred include that of Mahindra & Mahindra ( M&M) to provide service support for radar systems and defence electronic systems. Adding further, the FIPB, headed by Economic Affairs Secretary Arvind Mayaram, has also allowed pharma firm Aanhaneya Lifecare to raise funds worth Rs405 crore via issue of foreign currency convertible bonds. The proposal of Mumbai-based Hindustan Port to induct foreign funds worth Rs440 crore for investment in downstream companies was among those cleared by FIPB. Besides, the board has allowed Bangalore-based Syngene International to induct foreign equity of Rs125 crore. US-based Gavis Pharma LLC can also invest Rs73.75 crore in an Indian company engaged in the business of manufacture of injectable products.
Gail India plans to spend a Rs90bn in capital expenditure in the next fiscal, most of which will be used to complete the many on-going projects, a top company official has said. (ET) The Tata Housing Company limited has signed an MoU with the Gujarat government for constructing affordable houses worth Rs35bn in Ahmedabad district. (ET) Infrastructure major IVRCL Ltd has stopped work in the about Rs3bn hydel power project in Nepal, which it had won in 2010, demanding increase in the budget, sources said. (BL) GAIL has said it is looking to enter the gas shipping segment, primarily to bring in gas from its Sabine Pass fields in the US as also for shipping in gas from Gazprom’s Shtokman project in the Arctic region. (BL) Reliance Industries plans to set up three-in-one telecom towers, starting with Mumbai, as it readies to launch fourth generation telecom services across the country. (BL) Following a series of pay increments in the Gurgaon-Manesar automobile belt, a labour problem seems to be brewing over wage settlement terms at the Gurgaon unit of Hero MotoCorp, promoted by the Munjals. The immediate trigger could have been increments at the Manesar factory of former partner Honda Motorcycle and Scooter India (HMSI). (BS) Vijay Mallya’s Rs6.5bn investment plan to revive operations of the grounded Kingfisher Airlines has piqued its lenders, as it does not include repayment of the carrier’s existing bank debts. (BS) Reliance Broadcast Network is extending its regional presence, with a new Bhojpuri offering from its BIG MAGIC channel, in Bihar and Jharkhand. (BS) At its plant at Hansalpur near Mehsana in Gujarat, Maruti Suzuki India would primarily focus on exports, owing to the facility’s proximity to the Mundra port. The company would also bring vendors with whom it has joint ventures to the site. (BS) Tata Motors is living up to its reputation as one of Britain's biggest manufacturing employers and is set to add hundreds of new jobs at one of its UK plants. (ET) Tata Capital has expressed reservations about the Reserve Bank's proposed changes in the norms governing NBFCs, saying the move will negatively impact profits and raise lending rates. (ET) McCain Foods will invest Rs3.5bn to increase the existing production capacity at Mehsana in Gujarat. (ET) Economy Snippets Indicating that power tariffs could go up further, Power Ministry has said the price of electricity has to match the rising cost of inputs.(ET) The government has appointed a panel to look into issues related to compulsory licensing of drugs and whether cheaper versions of cancer medicines Trastuzumab, Ixabepilone and Dasatinib can be launched under the provision, a person with knowledge of the development said. (ET) Fiscal situation may worsen due to rising inflation, decline in economic growth and global slowdown, industry body Assocham said today. (BL) Asset financing non-banking finance companies (AFCs) have urged the RBI to permit them to raise external commercial borrowings. (BL) India has decided to formally suspend negotiations to finalise a trade liberalisation pact with Mauritius. (BS) The long pending negotiations for the India-European Union free trade agreement may finally move ahead with the EU’s chief negotiator scheduled to visit New Delhi this week, amid positive signals emanating from the 27-nation bloc.(BL)
"The optimist pleasantly ponders how high his kite will fly; the pessimist woefully wonders how soon his kite will fall." - William Arthur Ward Colourful kites are crowding the skies. The festival known by different names like Pongal, Makar Sankranti and Lohri marks the beginning of the Sun's movement northward for a six month period. If only we knew for certain when or how long the northward journey of our market could last. After a positive surprise from Infosys, the street is perhaps expecting more blockbuster performance on the bourses even if companies just about manage to beat expectations. Reliance Industries, TCS and ITC are among the big numbers this week. The opening is set to be flat to mildly positive. As usual, the companies announcing results will be in focus. The inflation numbers will also be keenly watched and it is expected to have risen in December. The RBI had projected December inflation of around 8% in its October policy review. What the RBI does on January 29 is likely to be speculated as the week goes by. For the Nifty, the trading range of 5920-6100 remains intact. Asian markets are more or less flat. Japan is reviving its export engine by aggressively devaluing its currency. The yen has fallen over 14% since October last year. US markets managed to end the week with slight gains but this week will have a host of economic data besides results. Retail sales and consumer sentiment will be eyed here. Results watch: TCS, ARO Granite, Electrosteel Cast, Shree Ganesh Jewel, Maharashtra Scoot, Muthoot Fin,Vakrangee Soft. Trends in FII flows: This year so far, FIIs were gross buyers of shares worth Rs 25,458 crore, while they sold equities amounting to Rs 16,645 crore -- a net inflow of Rs 8,813 crore ($1.6 billion), according to Sebi data. The FIIs were net buyers of Rs8.25bn in the cash segment on Friday, while the domestic institutional investors (DIIs) were net sellers of Rs5.16bn, as per the provisional figures released by the NSE. The foreign funds were net buyers of Rs7.72bn in the cash segment on Thursday, according to the SEBI figures. On the global front, China will release its GDP numbers Global Data Watch: Coming-of-Age Day JPY, ANZ Job Advertisements (Nov) AUD, Home Loans (Nov) AUD, Investment Lending for Homes (Nov) AUD, Fed's Evans Speech USD, Wholesale Price Index (MoM) (Dec) EUR, Wholesale Price Index (YoY) (Dec) EUR, Industrial Output w.d.a (YoY) (Nov) EUR, Industrial Output s.a. (MoM) (Nov) EUR, Industrial Production w.d.a. (YoY) (Nov) EUR, Industrial Production s.a. (MoM) (Nov) EUR, Fed's William Dudley speech USD, Fed's Lockhart speech USD, NZIER Business Confidence (QoQ) (Q4) NZD, Food Price Index (MoM) (Dec) NZD, Money Supply M2+CD (YoY) (Dec) JPY In other news in the media: Gail India plans to spend a Rs90bn in capital expenditure in the next fiscal, most of which will be used to complete the many on-going projects, a top company official has said. (ET) The Tata Housing Company limited has signed an MoU with the Gujarat government for constructing affordable houses worth Rs35bn in Ahmedabad district. (ET) Infrastructure major IVRCL Ltd has stopped work in the about Rs3bn hydel power project in Nepal, which it had won in 2010, demanding increase in the budget, sources said. (BL) Reliance Industries plans to set up three-in-one telecom towers, starting with Mumbai, as it readies to launch fourth generation telecom services across the country. (BL) Indicating that power tariffs could go up further, Power Ministry has said the price of electricity has to match the rising cost of inputs. (ET)
Prices pressured by inflation data out of China Crude oil prices ended lower on Friday, 11 January 2013 at Nymex. Oil futures settled lower on Friday, pressured as inflation data out of China that came in higher than expected and as investors banked some profits after a solid performance the prior day. Oil prices still saw a gain for the week, while natural-gas futures rallied in the wake of recent data showing a hefty drop in U.S. inventories. Light and sweet crude oil for February delivery lost 26 cents, or 0.3%, to settle at $93.56 a barrel on the New York Mercantile Exchange on Friday. Prices finished the week 0.5% higher. Among economic data expected for the day at Wall Street, the trade deficit widened to $48.7 billion during November after a downwardly revised prior month deficit of $42.1 billion. Market had expected that the deficit would come in at $41.8 billion. Export prices, excluding agriculture, decreased by 0.2% in December after they had decreased by 0.7% during the prior month. Excluding oil, import prices decreased by 0.1%, which follows the 0.2% decrease experienced in the prior month. The December Treasury Budget showed a deficit of $260 million, which was narrower than the deficit of $1.0 billion expected. The report has mattered little to market participants as equity indices did not respond to the news. But on Friday, data showed that China's consumer price index climbed 2.5% in December from a month earlier, accelerating from a 2% increase in November. The dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.3% on Friday. Among energy products on Friday, gasoline for February delivery slid 5 cents, or 1.9%, to end at $2.74 a gallon, down 0.9% for the week, while February heating oil gave up nearly 5 cents, or 1.5%, to $3.01 a gallon, losing 0.3% from a week ago. Natural gas bucked the energy downtrend, with February natural gas rallying 13 cents, or 4.2%, to finish at $3.33 per million British thermal units. Prices erased their losses for the week to score a 1.2% gain. The U.S. Energy Information Administration on Thursday reported a larger-than-expected 201 billion cubic foot draw in last week's natural-gas supplies.
The market may open higher on mostly higher Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 18 points at the opening bell. IT major, TCS announces Q3 results today, 14 January 2013. On macro front, the Central Statistics Office (CSO) will unveil data on inflation based on the combined consumer price index CPI) for urban and rural India and also inflation based on the wholesale price index (WPI) both for December 2012, today, 14 January 2013. WPI inflation is projected to rise to 7.3% in December 2012 from 7.24% in November 2012, as per the median estimate of a poll of economists carried out by Capital Market. Among the components of WPI inflation, the non-food manufacturing inflation or core inflation had hit 2-1/2-year hit low at 4.49% in November 2012. Inflation based on the consumer price index (CPI) edged up to 9.9% in November 2012 from 9.75% in October 2012. Petronet LNG's net profit rose 7.82% to Rs 318.50 crore on 31.52% rise in total income to Rs 8347.69 crore in Q3 December 2012 over Q3 December 2011. The company announced Q3 results before market hours today, 14 January 2013. Jaiprakash Power Ventures reported a net loss of Rs 97.58 crore in Q3 December 2012 compared to net profit of Rs 59.52 crore in Q3 December 2011. Total income rose 4.93% to Rs 438.31 crore in Q3 December 2012 over Q3 December 2011.The company announced Q3 results before market hours today, 14 January 2013 The results under review are in respect of 300 mega watts (MW) Jaypee Baspa II H.E. Plant, 400 MW Jaypee Vishnuprayag H.E. Plant, 1000 MW Jaypee Karcham Wangtoo H.E. Plant and Unit 1 of 2 X 250 = 500 MW Jaypee Bina Thermal Power Plant. The Jaypee Bina Thermal Power Plant had commenced commercial operation of its first unit of 250 MW on August 31, 2012, therefore the results of the current quarter are not comparable with the figures of corresponding quarter of previous year. Jaiprakash Power Ventures said that the board of directors of the company at its meeting held on January 12, 2013, has authorised, subject to approval of the shareholders by passing the resolution by way of postal ballot, raising of funds / resources upto Rs 3500 crore through various Domestic/International options, including QIP/ ECB with rights of conversion into shares / FCCBs/ ADRs/ GDRs/ FPO/ Optionally or Compulsorily Convertible Redeemable Preference Shares etc., pursuant to Section 81 of the Companies Act, 1958 for the company's ongoing projects and/or the projects of its joint venture and subsidiary companies. FMCG and agri-sector stocks will be in focus after the Centre said after trading hours on Friday, 11 January 2013, said that as per reports received from various states, sowing of rabi or winter crops so far this year has exceeded the area sown by this time last year. FMCG firms derive substantial revenue from rural India. The total rabi sown area stands at 580.83 lakh hectares (LH) against 578.34 LH during same time last year. The Election Commission on Friday, 11 January 2013, said that assembly polls will be held in Tripura on 14 February 2013. Assembly polls in two other states viz. Meghalaya and Nagaland will be held on 23 February 2013. The counting of votes for assembly elections held in Tripura, Meghalaya and Nagaland will take place on the same day on 28 February 2013. The focus on the stock market is currently on Q3 December 2012 results. Investors and analysts will closely watch the management commentary that would accompany the result which could cause revision in their future earnings forecast of the company for the current year and or next year. Axis Bank announces Q3 results tomorrow, 15 January 2013. Bajaj Auto unveils Q3 results on 16 January 2013. Hero MotoCorp announces Q3 results on 17 January 2013. HCL Technologies announces its Q2 December 2012 results on the same day. Reliance Industries, Wipro, HDFC Bank and ITC unveil Q3 results on 18 January 2013. UltraTech Cement unveils Q3 results on 19 January 2013. HDFC, NTPC, Asian Paints and Cairn India unveil Q3 results on 21 January 2013. Kotak Mahindra Bank unveils Q3 results on 22 January 2013. L&T unveils Q3 results on 24 January 2013. Maruti Suzuki India unveils Q3 results on 25 January 2013. ICICI Bank and Grasim Industries unveil Q3 results on 31 January 2013. Siemens will unveil its Q1 December 2012 results on 31 January 2013. IDFC announces Q3 results on 1 February 2013. Mahindra & Mahindra and Hindalco Industries unveil Q3 results on 8 February 2013. The barometer index, BSE Sensex, ended almost unchanged for the day on Friday, 11 January 2013 as gains a rally in IT stocks offset decline in index heavyweights ITC and Reliance Industries (RIL). The 50-unit S&P CNX Nifty edged lower on that day. The Sensex settled almost unchanged for the day at 19,663.64 on Friday. Foreign institutional investors (FIIs) bought shares worth a net Rs 825.18 crore on Friday, 11 January 2013, as per provisional data from the stock exchanges. Most Asian stocks rose on Monday, 14 January 2013. Key benchmark indices in China, Hong Kong, Indonesia, and South Korea rose by 0.2% to 0.75%. Key benchmark indices in Singapore and Taiwan fell by 0.7% to 0.74%. Bank of Japan holds a two-day meeting on interest rates in Japan on 21 and 22 January 2013. U.S. stocks ended little changed on Friday, 11 January 2013 with Wells Fargo & Co. weighing on the financial sector after the bank reported a decline in its net interest margin. The Federal Open Market Committee (FOMC) holds a two-day meeting on interest rates in the United States on 29 and 30 January 2013.