Indian Markets May Open Positive In Line With Strong Global Cues
DSIJ Intelligence / 09 Feb 2012
Late last evening, Greece had finally agreed on a package of austerity measures to propose to its creditors in order to avoid defaulting on its debt next month. This news has lifted the global market sentiments.
Morning Update 10th Feb 2012
Opening Bias
Indian markets may open positive in line with strong global cues. Late last evening, European Central Bank President Mario Draghi said that Greece had finally agreed on a package of austerity measures to propose to its creditors in order to avoid defaulting on its debt next month.
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 17830.75 | 0.70 |
| NIFTY | 5412.35 | 0.82 |
| Dow Jones | 12890.46 | 0.05 |
| S&P 500 | 1351.95 | 0.15 |
| NASDAQ | 2927.23 | 0.39 |
| Bovespa | 65530.50 | -0.46 |
| FTSE | 5895.47 | 0.33 |
| DAX | 6788.90 | 0.60 |
| CAC | 3424.71 | 0.43 |
| LIVE | ||
| Hang Seng | 21010.01 | -0.04 |
| Nikkei | 9001.07 | -0.02 |
| Shanghai | 2349.59 | 0.09 |
This development lifted the market sentiments in Europe and US. Global Markets were also buoyed by a better than expected US Jobs data, which showed that initial jobless claims fell by 15,000 to a seasonally adjusted 358,000 in the week ended Feb. 4.
| Currency Rates | ||||
|---|---|---|---|---|
|
| Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP |
| RBI Rate | 49.2895 | 65.5895 | 78.0992 | 63.8600 |
| Future | 49.6950 | 65.9500 | 78.6400 | 64.4375 |
Back on the domestic turf, with the Q3 earnings season coming to an end soon and budget set to be announced on 16th March 2011 all attention will slowly and steadily be focused on the govt. The street would start buzzing in anticipation of what one can expect for the Union Budget 2012-13. The 16th of March could well be the UPA government’s make or break day.
With the economy facing serious slowdown and the bureaucracy in a state of paralysis, corporate India will look towards the govt. to speed up its key policies and reforms and hope to bring things back on track. One of the key reforms on everyone’s mind would be the passage of Good and Service Tax (GST), which could very well improve our fiscal position.
Also investors and traders would expect the govt. to be more realistic this time round while making its forecasts for growth, fiscal deficit, inflation etc. The street would also hope for the govt. to speed up the disinvestment process as markets have been showing some steady signs improving.
| Key Global Indicators | ||
|---|---|---|
|
| Gold (Rs/10gm) | Crude ($/bbl) |
| Spot | 27496 | 118.65 |
| % change | - | 1.04 |
| Future | 28370 | 99.65 |
| % change | 0.69 | -0.19 |
In other developments, Indian exports in January rose 10.1 per cent to $25.4 billion after dismal, single-digit growth in November and December. Imports rose 20.3 per cent to $40.1 billion, leaving a trade deficit of $14.7 billion. Taking the January numbers into account, total exports during the first 10 months of the current financial year stood at $242.8 billion, up 23.5 per cent over the corresponding period of the previous financial year. Imports also surged 29.4 per cent to $391.5 billion in the April-January period, resulting in a trade deficit of $148.7 billion. Market experts have said that at the pace at which the imports have outpaced exports, the country’s current account deficit (CAD) may reach somewhere between USD 160-165 billion, 3.5 per cent of GDP.
In conclusion, for today we expect the markets to remain positive.
Stocks In Action
According to press release on the BSE, Tata Steel posted its first quarterly net loss in more than two years, hit by higher raw material costs and weak prices in Europe. The company reported a cons net loss of Rs 687 crore for quarter ended December, compared with a net profit of Rs 949 crore a year earlier. After minority interest and share of associates, it reported a net loss of Rs 603 crore. A Reuter’s poll had expected a net profit of Rs 34 crore.
According to press release on the BSE, an impact of higher raw material cost, marginally trimmed Hindalco Industries' December quarter profits to Rs 450 crore as against Rs 460.3 crore, the company posted in the year-ago period. However, sales rose 11% to Rs 6,590 year-on-year on higher volumes and better realisation from both its aluminum and copper verticals. During the quarter, the company deployed Rs 21,172 crore capitals to expand capacities in its ongoing projects including Mahan and Hirakud rolled and Aditya Aluminium Projects.
According to press release on the BSE, State-owned HPCL saw its net profit skyrocket thirteen-fold to Rs 2,725 crore for the quarter ended December 2011 as against Rs 211 crore in the same period a year ago. Total income surged 41% to Rs 48,205 crore from Rs 34,200 crore in December 2010. The state owned company received a budgetary support of Rs 9857 crore for its under-recoveries. It also received a discount of Rs 8000 crore from the upstream oil & gas companies.
According to press release on the BSE, JK Tyre & Industries today reported a net loss of Rs 21.31 crore for the quarter ended December 31, 2011 as against a net profit of Rs 9.14 crore in the same period last financial year. The total income during the third quarter, however, went up by 20.69% to Rs 1,422.94 crore from Rs 1,178.99 crore in the year-ago period. The shares of the company today closed 2.29% higher at Rs 82.75 apiece on the BSE. We expect some profit taking today.
Corporate Action
| Corp Action | ||
|---|---|---|
| Scrip Name | Action | Ratio |
| GMM Pfaudler | 3rd Interim Dividend | 0.70 |
| KCP | 3rd Interim Dividend | 0.25 |
| Tube Invest | Interim Dividend | 2.00 |
| VIP Inds-$ | Interim Dividend | 0.60 |
| Results Today | |||
|---|---|---|---|
| Scrip Name | Action | Scrip Name | Action |
| Aurobindo Pharm | Q3FY12 | Orissa Minerals | Q3FY12 |
| BF Utilities | Q3FY12 | Pantaloon Ret | Q3FY12 |
| BPCL | Q3FY12 | Pipavav Defence | Q3FY12 |
| Bombay Rayon | Q3FY12 | Puravankara Pro | Q3FY12 |
| Britannia | Q3FY12 | Rel Capital | Q3FY12 |
| DLF | Q3FY12 | Reliance Comm | Q3FY12 |
| Eros Intern | Q3FY12 | Religare Enterp | Q3FY12 |
| Essar Oil | Q3FY12 | Shriram TransFi | Q3FY12 |
| GE Shipping | Q3FY12 | Sun TV Network | Q3FY12 |
| Hathway Cable | Q3FY12 | Tata Chemicals | Q3FY12 |
| Hotel Leela | Q3FY12 | ||
| IDFC | Q3FY12 | ||
| JSW Steel | Q3FY12 | ||
| MMTC Ltd | Q3FY12 | ||
| Neyveli Lignite | Q3FY12 | ||
| BSE Institutional Turnover | ||||||
|---|---|---|---|---|---|---|
|
| FII | DII | ||||
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
| 9-Feb-12 | 3,985.22 | 2,784.56 | 1,200.66 | 964.39 | 2,001.97 | -1,037.58 |
| 8-Feb-12 | 4,402.73 | 4,018.49 | 384.24 | 1,512.31 | 1,936.77 | -424.46 |
| 7-Feb-12 | 2,898.03 | 2,279.19 | 618.84 | 916.16 | 1,770.62 | -854.46 |
| Feb , 12 | 28,146.59 | 20,252.98 | 7,893.61 | 9,010.09 | 13,110.72 | -4,100.63 |
| FII DERIVATIVES STATISTICS FOR 09-Feb-2012 | |||||
|---|---|---|---|---|---|
|
| Buy | Sell | OI (End of day) | Net Position | |
|
| Rs (crore) | Rs (crore) | No. of contracts | Rs (crore) | Rs (crore) |
| Index Futures | 1787.95 | 1845.50 | 571584 | 15466.98 | -57.54 |
| Index Options | 14334.10 | 14084.01 | 1500589 | 40595.69 | 250.09 |
| Stock Futures | 1919.52 | 2178.69 | 1040861 | 30347.32 | -259.17 |
| Stock Options | 670.35 | 701.09 | 56707 | 1619.16 | -30.74 |
| Total | 18711.92 | 18809.28 | 3169741 | 88029.15 | -97.36 |
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