Markets may witness a positive opening
Vidrum / 20 Oct 2011
Morning Update 19thOct 2011
Opening Bias
The markets may witness a positive opening in line with global cues. The SGX Nifty is trading up by 15 points at 5070 indicating a gap up opening.
Overnight U.S. stocks U.S. stocks rallied, adding to gains late in the session, after a British newspaper reported that France and Germany had reached an agreement to bolster the euro area’s rescue fund. Asian markets are also seen trading in the green tracking late-session gains in the U.S. after an unconfirmed report that Europe's key bailout fund would be expanded by close to $2.5 trillion.
Back home, with the Q2FY11 earning season coming close we recommend our readers to closely watch the management commentary at the time of announcement of Q2 September 2011 results, which will provide cues on futures earnings outlook.
In conclusion, we expect the markets to remain volatile for the day, as the forthcoming Q2 results season may give rise to market speculation on the outcome of individual company results. Also there are concerns over the health of the Euro zone debt crisis.
Corporate News
Country's largest two-wheeler maker Hero Motorcorp has reported net profit of Rs 604 crore for the period ended July to September 2011. Company had posted a profit of Rs 506 crore in the corresponding quarter of last fiscal. Company reported 19.4 per cent growth in its net profit, beating the market expectations. Company also reported 28 per cent in its net sales to Rs 5,784 crore in Q2FY12 from Rs 4,511 corresponding quarter last year. Hero Motocorp recorded 18 per cent Y-o-Y growth in volumes from 1.29 million vehicles in the Q2FY11 to 1.54 million vehicles September quarter this fiscal.
IndusInd Bank yesterday announced its quarterly results. Its net profit rose by 45 per cent on year-on-year basis to Rs 193 crore on the back higher fee income and growth in loan book. While the loan book expanded by 29 per cent to Rs 30,136 crore, its other income grew by 37 per cent to Rs 239 crore. The core fee income rose 30 per cent to Rs 212 crore which remained the key driver for the profit growth of the company. Company has added three fee boosters including credit card, loan against property and selling of loans from HDFC. Credit card business, which was launched just four months back, has turned profitable while loan against property has started picking up. Company expects to maintain a growth of 25-30 per cent in the next three years.
Patni Computer Systems yesterday posted a 37.51 per cent fall in its consolidated net profit for the Quarter ended September, however its shares surged by about 20 per cent after the company reported a less decline than expected. Company posted net profit of Rs 90.27 crore in the second quarter of this fiscal, compared to Rs 144 crore in the same period last year. Indian mid-cap IT firms are likely to witness a muted growth in bottom line due to squeeze in margins in July-September quarter on the back of wage hikes, lateral hiring and the crisis in Europe.
HCL Technologies on yesterday posted a 50 per cent jump in its quarterly profit, but shares fell as much as 7 per cent on a cloudy outlook for the sector amid slowing global growth. Its consolidated profit rose to Rs 497 crore for July-September on growth across geographies and categories. Revenue rose by 25.4 per cent to Rs 4,651 crore.
Tech Mahindra has signed a memorandum of understanding with Sitronics India, a subsidiary of Russia-based Sitronics, for expanding its software solution market in the country. Financial details however are not available at this stage. According to the agreement Tech Mahindra will promote operations support system (OSS) software, and business support systems (BSS) solution of Sitronics India in the domestic market and both parties would mutually explore, implement and support various IT solutions.
Petronet LNG is looking to get 12 to 14 spot cargoes of liquefied natural gas (LNG) in December quarter to meet surging local demand amid falling output. In the September quarter, the gas importer re- gasification 42 cargoes, of which 12 were spot cargoes. Petronet operates a 10 million-tonne-a-year LNG re-gasification plant at Dahej in Gujarat and now plans to raise it to 15 million tonnes a year by end of 2015 with the investment of Rs. 3,000 crore. Company is also ambitious to commission Kochi LNG terminal in FY13 which has capacity of 5 million tonne per year.
Federal bank yesterday unveiled its plan to expand its operations across the country by launching 66 new branches. At present, the bank has 823 branches, 877 ATMs and a business size of almost Rs. 81,000 crore. Of the new 66 branches, 28 are in Kerala and the rest are in Tamil Nadu, Gujarat and Karnataka. The bank also launched new products and services for its customers such as special pricing of deposits of 66 days period and specialized offerings on gold coins, home loans and bullion.
The country’s largest software exporter Tata Consultancy Services (TCS) is planning to hire about 45,000 freshers in the next fiscal. TCS has already given offers to 35,000 freshers across the country. During the current fiscal so far, TCS has hired 37,000 employees. Company is also planning to make another 10,000 offers in this fiscal. The freshers are expected to join in during third quarter of this fiscal. The company has set a target of 60,000 new recruitments this year.
Future Group yesterday announced that it will invest up to Rs 100 crore in the next three years for expanding its new venture of rural wholesale and distribution business under 'Aadhaar Wholesale' brand. It plans to open 65 such stores across India by 2014. It expects to revenues of Rs 4,000 crore when the planned stores will start operations. He said that the Future Ventures Ltd will invest between Rs 80 crore to Rs 100 crore in the new business through its subsidiary Aadhaar Retailing Ltd. Aadhaar Wholesale will have 1,500 stock-keeping units or products, including processed food, personal and home care, general merchandise items and kitchen appliances. At present, the group operates 60 Aadhaar retail outlets in rural locations across the country in partnership with the Godrej Group.
Maruti Suzuki has begun production of its best-selling 'Swift' hatchback from its strike-crippled Manesar plant in Haryana, the company said on Tuesday. The carmaker rolled out 350 units of 'Swift' from the plant that was shut for 10 days following a sit-in protest by employees demanding reinstatement of 1,100 casual workers. Maruti shares have fallen 16% since the start of the first strike on June 13. On Tuesday, the stock was 0.05 per cent up at Rs 1052.55.
GVK power and infrastructure has acquired a majority stake in Mumbai International Airport Private Limited (MIAL)by buying 13.5 per cent equity stake from Bid Services Division, Mauritius for the amount of $231 million (Rs 1134 crore). Once the transaction is completed GVK will hold 50.5 per cent stakes in the MIAL.
Sun Pharma has proposed to buy all of remaining outstanding shares from its Israeli subsidiary Taro pharmaceuticals industries limited. Sun Pharma already holds 48.7 per cent stakes in the subsidiary.
IPO Listing
Taksheel Solutions IPO (Avoid)
Listing Date: Wednesday, October 19, 2011
BSE Scrip Code: 533639
NSE Symbol: TAKSHEEL
Listing In: 'B' Group of Securities
ISIN: INE889I01011
Issue Price: Rs. 150.00 per Equity Share
Face Value: Rs. 10.00 per Equity Share
Flexituff IPO (Avoid)
Listing Date: Wednesday, October 19, 2011
BSE Scrip Code: 533638
NSE Symbol: FLEXITUFF
Sector: 'B' Group of Securities
ISIN: INE060J01017
Issue Price: Rs. 155.00 per Equity Share
Face Value: Rs. 10.00 per Equity Share
Corporate Actions
Opening Bias
The markets may witness a positive opening in line with global cues. The SGX Nifty is trading up by 15 points at 5070 indicating a gap up opening.
| Benchmark Indices | ||
| Index | Closing | % Change |
| SENSEX | 16748.29 | -1.63 |
| NIFTY | 5037.5 | -1.58 |
| Dow Jones | 11577 | 1.58 |
| S&P 500 | 1225.38 | 2.04 |
| NASDAQ | 2657.43 | 1.63 |
| Bovespa | 55031.9 | 2.08 |
| FTSE | 5410.35 | -0.48 |
| DAX | 5877.41 | 0.31 |
| CAC | 3141.1 | -0.79 |
| LIVE | ||
| Hang Seng | 18250.08 | 0.96 |
| Nikkei | 8789.83 | 0.55 |
| Shanghai | 2390.64 | 0.30 |
Overnight U.S. stocks U.S. stocks rallied, adding to gains late in the session, after a British newspaper reported that France and Germany had reached an agreement to bolster the euro area’s rescue fund. Asian markets are also seen trading in the green tracking late-session gains in the U.S. after an unconfirmed report that Europe's key bailout fund would be expanded by close to $2.5 trillion.
| Currency Rates | ||||
| Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP | |
| RBI Rate | 49.1360 | 67.5815 | 77.5833 | 63.9700 |
| Future | 49.4100 | 67.6650 | 77.7000 | 64.4200 |
Back home, with the Q2FY11 earning season coming close we recommend our readers to closely watch the management commentary at the time of announcement of Q2 September 2011 results, which will provide cues on futures earnings outlook.
In conclusion, we expect the markets to remain volatile for the day, as the forthcoming Q2 results season may give rise to market speculation on the outcome of individual company results. Also there are concerns over the health of the Euro zone debt crisis.
Corporate News
Country's largest two-wheeler maker Hero Motorcorp has reported net profit of Rs 604 crore for the period ended July to September 2011. Company had posted a profit of Rs 506 crore in the corresponding quarter of last fiscal. Company reported 19.4 per cent growth in its net profit, beating the market expectations. Company also reported 28 per cent in its net sales to Rs 5,784 crore in Q2FY12 from Rs 4,511 corresponding quarter last year. Hero Motocorp recorded 18 per cent Y-o-Y growth in volumes from 1.29 million vehicles in the Q2FY11 to 1.54 million vehicles September quarter this fiscal.
IndusInd Bank yesterday announced its quarterly results. Its net profit rose by 45 per cent on year-on-year basis to Rs 193 crore on the back higher fee income and growth in loan book. While the loan book expanded by 29 per cent to Rs 30,136 crore, its other income grew by 37 per cent to Rs 239 crore. The core fee income rose 30 per cent to Rs 212 crore which remained the key driver for the profit growth of the company. Company has added three fee boosters including credit card, loan against property and selling of loans from HDFC. Credit card business, which was launched just four months back, has turned profitable while loan against property has started picking up. Company expects to maintain a growth of 25-30 per cent in the next three years.
Patni Computer Systems yesterday posted a 37.51 per cent fall in its consolidated net profit for the Quarter ended September, however its shares surged by about 20 per cent after the company reported a less decline than expected. Company posted net profit of Rs 90.27 crore in the second quarter of this fiscal, compared to Rs 144 crore in the same period last year. Indian mid-cap IT firms are likely to witness a muted growth in bottom line due to squeeze in margins in July-September quarter on the back of wage hikes, lateral hiring and the crisis in Europe.
HCL Technologies on yesterday posted a 50 per cent jump in its quarterly profit, but shares fell as much as 7 per cent on a cloudy outlook for the sector amid slowing global growth. Its consolidated profit rose to Rs 497 crore for July-September on growth across geographies and categories. Revenue rose by 25.4 per cent to Rs 4,651 crore.
Tech Mahindra has signed a memorandum of understanding with Sitronics India, a subsidiary of Russia-based Sitronics, for expanding its software solution market in the country. Financial details however are not available at this stage. According to the agreement Tech Mahindra will promote operations support system (OSS) software, and business support systems (BSS) solution of Sitronics India in the domestic market and both parties would mutually explore, implement and support various IT solutions.
Petronet LNG is looking to get 12 to 14 spot cargoes of liquefied natural gas (LNG) in December quarter to meet surging local demand amid falling output. In the September quarter, the gas importer re- gasification 42 cargoes, of which 12 were spot cargoes. Petronet operates a 10 million-tonne-a-year LNG re-gasification plant at Dahej in Gujarat and now plans to raise it to 15 million tonnes a year by end of 2015 with the investment of Rs. 3,000 crore. Company is also ambitious to commission Kochi LNG terminal in FY13 which has capacity of 5 million tonne per year.
Federal bank yesterday unveiled its plan to expand its operations across the country by launching 66 new branches. At present, the bank has 823 branches, 877 ATMs and a business size of almost Rs. 81,000 crore. Of the new 66 branches, 28 are in Kerala and the rest are in Tamil Nadu, Gujarat and Karnataka. The bank also launched new products and services for its customers such as special pricing of deposits of 66 days period and specialized offerings on gold coins, home loans and bullion.
The country’s largest software exporter Tata Consultancy Services (TCS) is planning to hire about 45,000 freshers in the next fiscal. TCS has already given offers to 35,000 freshers across the country. During the current fiscal so far, TCS has hired 37,000 employees. Company is also planning to make another 10,000 offers in this fiscal. The freshers are expected to join in during third quarter of this fiscal. The company has set a target of 60,000 new recruitments this year.
Future Group yesterday announced that it will invest up to Rs 100 crore in the next three years for expanding its new venture of rural wholesale and distribution business under 'Aadhaar Wholesale' brand. It plans to open 65 such stores across India by 2014. It expects to revenues of Rs 4,000 crore when the planned stores will start operations. He said that the Future Ventures Ltd will invest between Rs 80 crore to Rs 100 crore in the new business through its subsidiary Aadhaar Retailing Ltd. Aadhaar Wholesale will have 1,500 stock-keeping units or products, including processed food, personal and home care, general merchandise items and kitchen appliances. At present, the group operates 60 Aadhaar retail outlets in rural locations across the country in partnership with the Godrej Group.
Maruti Suzuki has begun production of its best-selling 'Swift' hatchback from its strike-crippled Manesar plant in Haryana, the company said on Tuesday. The carmaker rolled out 350 units of 'Swift' from the plant that was shut for 10 days following a sit-in protest by employees demanding reinstatement of 1,100 casual workers. Maruti shares have fallen 16% since the start of the first strike on June 13. On Tuesday, the stock was 0.05 per cent up at Rs 1052.55.
GVK power and infrastructure has acquired a majority stake in Mumbai International Airport Private Limited (MIAL)by buying 13.5 per cent equity stake from Bid Services Division, Mauritius for the amount of $231 million (Rs 1134 crore). Once the transaction is completed GVK will hold 50.5 per cent stakes in the MIAL.
Sun Pharma has proposed to buy all of remaining outstanding shares from its Israeli subsidiary Taro pharmaceuticals industries limited. Sun Pharma already holds 48.7 per cent stakes in the subsidiary.
IPO Listing
Taksheel Solutions IPO (Avoid)
Listing Date: Wednesday, October 19, 2011
BSE Scrip Code: 533639
NSE Symbol: TAKSHEEL
Listing In: 'B' Group of Securities
ISIN: INE889I01011
Issue Price: Rs. 150.00 per Equity Share
Face Value: Rs. 10.00 per Equity Share
Flexituff IPO (Avoid)
Listing Date: Wednesday, October 19, 2011
BSE Scrip Code: 533638
NSE Symbol: FLEXITUFF
Sector: 'B' Group of Securities
ISIN: INE060J01017
Issue Price: Rs. 155.00 per Equity Share
Face Value: Rs. 10.00 per Equity Share
Corporate Actions
| FII DERIVATIVES STATISTICS FOR 17-Oct-2011 | |||||||
| BUY | SELL | OPEN INTEREST AT THE END OF THE DAY | Net Position | ||||
| No. of contracts | Rs (crore) | No. of contracts | Rs (crore) | No. of contracts | Rs (crore) | Rs (crore) | |
| INDEX FUTURES | 97181 | 2439.40 | 106947 | 2668.82 | 543271 | 13571.12 | -229.42 |
| INDEX OPTIONS | 452364 | 11243.89 | 438898 | 10932.87 | 1895497 | 47737.76 | 311.02 |
| STOCK FUTURES | 153959 | 3865.47 | 167407 | 4184.91 | 1184606 | 28494.08 | -319.44 |
| STOCK OPTIONS | 18295 | 455.24 | 17522 | 439.54 | 45777 | 1147.13 | 15.69 |
| Total | 721799 | 18003.99 | 730774 | 18226.14 | 3669151 | 90950.09 | -222.15 |
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