Indian Markets May Open Negative
DSIJ Intelligence / 16 Feb 2012
Indian markets may cut back yesterday’s profits and open negative. The SGX Nifty is trading down by 26 points at 5525 indicating a gap down opening to markets today.
Opening Bias
The Indian markets may cut back yesterday’s profits and open negative. The SGX Nifty is trading down by 26 points at 5,525, indicating a gap down opening to the markets today.
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 18202.41 | 1.98 |
| NIFTY | 5531.95 | 2.10 |
| Dow Jones | 12780.95 | -0.76 |
| S&P 500 | 1343.23 | -0.54 |
| NASDAQ | 2915.83 | -0.55 |
| Bovespa | 65368.50 | 0.51 |
| FTSE | 5892.16 | -0.13 |
| DAX | 6757.94 | 0.44 |
| CAC | 3390.35 | 0.44 |
| LIVE | ||
| Hang Seng | 21269.8 | -0.45 |
| Nikkei | 9265.91 | 0.06 |
| Shanghai | 2365.7 | -0.04 |
Overnight, the US stocks fell, sending the Standard & Poor’s 500 Index lower for a second day, as concern grew that Greece was moving closer to default and the Federal Reserve said that policy makers were divided on buying more assets. The Asian stocks have opened on a mixed and volatile note as a delay in the second bail-out for Greece revived concerns about Europe having to continue to struggle to contain its debt crisis.
| Currency Rates | ||||
|---|---|---|---|---|
|
| Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP |
| RBI Rate | 49.2520 | 64.8900 | 77.4537 | 62.7600 |
| Future | 49.3850 | 64.9575 | 77.5500 | 62.9200 |
Back home, the markets rallied yesterday as foreign fund inflows continued unabated amid hopes of policy rate cuts fuelled by the drop in inflation. But with the December quarter earnings season coming to a close we urge investors to be careful as the recent stock gains may be tough to sustain with the companies’ earnings’ growth still lagging the elevated share valuations and the Greece debt crisis yet to be resolved.
| Key Global Indicators | ||
|---|---|---|
|
| Gold (Rs/10gm) | Crude ($/bbl) |
| Spot | 27243 | 119.67 |
| % change | - | -0.22 |
| Future | 28162 | 101.57 |
| % change | 0.27 | -0.23 |
Heightening tensions between Iran and the Western nations could also spook investors. Also, with the Union Budget round the corner, we expect the markets to turn choppy with all the attention focused towards what the finance minister may deliver to boost the economic growth of the country. In conclusion, we expect the markets to remain volatile with negative bias. Markets would pick up vital cues from the European markets during the late noon trades.
Stocks In Action
We expect negative action in the the scrip of RIL as according to a latest plan submitted to the Director General of Hydrocarbons, the company has said that natural gas production at its flagging KG-D6 fields is likely to dip to an all-time low of about 22 million cubic meters a day by 2013-14. This latest declaration has come after certain government sources yesterday revealed that the KG basin may indeed see a drastic drop in its production levels in the coming times. This will also have a major impact on the company’s financial performance in the future.
We expect some positive action in the telecom pack today (Bharti Airtel, Idea, RCom, Tata Teleservices) in the wake of Communications Minister Kapil Sibal announcing key policy measures largely aimed at reassuring incumbent operators who had been seeking clarity in rules and as the government attempts to put the scam-tainted telecom sector back on track.
According to sources, the government has initiated the process to supply coal to private power producers. State-run Coal India Limited (CIL), the largest coal producer in the country, has agreed to sign the fuel supply agreements (FSA) with private-sector power firms to ensure sufficient supply of dry fuel, even if the coal miner has to import it. The FSA will ensure that CIL will provide full quantity of coal sought by the power companies. However, the agreement will extend to those power units that would be ready by March 15. The move would benefit up to 50,000 megawatt of capacity addition in the power sector.
According to a filing with the exchanges, Anil Agarwal-led Sterlite Industries (India) will have to pay an additional USD 82.75 million to Asarco as ‘incidental damages’ for walking away from a deal to acquire the US-based copper miner in 2008. A Texas-based bankruptcy court directed Sterlite to pay on February 13 a gross amount of USD 132.75 million in incidental damages to Asarco and at the same time rejected its application of refunding USD 50 million paid to Asarco earlier. This amount (USD 132.75 million) shall be reduced by USD 50 million paid to Asarco in December 2009, entitling Asarco for a net amount of USD 82.75 million, the company further added.
According to a BSE press release, HCL Technologies, a leading global IT services provider, announced that it has entered into a strategic relationship with Great American Insurance Group (GAIG), a leader in specialty property and casualty insurance, to provide integrated IT services, business process outsourcing (BPO) and infrastructure management services to GAIG and its affiliates.
According to Economic Times, Telenor has served a divorce notice to Unitech seeking compensation for damages caused to their mobile venture Uninor from a recent Supreme Court judgment, adding that it was looking for a new partner in India. Uninor was one of the worst affected by the Supreme Court’s decision earlier this month to cancel 122 mobile licenses issued under a scandal-tainted 2008 sale. The company, with Telenor’s stake of 67.25, held 22 of these licenses. Telenor has said that it had bought into the company well after the licenses had been issued and it had no role in the controversial sale. In 2009, the Norwegian firm paid Rs 6,100 crore to buy into Uninor, formerly called Unitech Wireless. It subsequently invested another Rs 8,000 crore into the business, which has close to 40 million users. Unitech has responded with an equally strong statement and warned that it would take Telenor to court. Expect negative action in the scrip of Unitech today.
Corporate Action
| Corp Action | ||
|---|---|---|
| Scrip Name | Action | Ratio |
| Camlin Fine | Stock Split | Rs 10/- to Rs 2/- |
| SYMPHONY | Stock Split | Rs 10/- to Rs 2/- |
| Corp Action | ||
|---|---|---|
| Scrip Name | Action | Ratio |
| Bajaj Corp | Interim Dividend | 4.00 |
| Chromatic India | Interim Dividend | 0.05 |
| Container Corp | Interim Dividend | 7.50 |
| Dynamatic Tech-$ | 2nd Interim Dividend | 3.00 |
| Engineers India | Interim Dividend | 2.00 |
| Jolly Board | Interim Dividend | 5.00 |
| MBL INFRA | Interim Dividend | 1.50 |
| MOIL | Interim Dividend | 2.00 |
| Mphasis | Final Dividend | 6.50 |
| Rane Holdings | Interim Dividend | 6.00 |
| RS Software | Interim Dividend | 1.00 |
| SAIL | Interim Dividend | 1.20 |
| Sun TV Network | Interim Dividend | 2.50 |
| Sundram Fast | 1st Interim Dividend | 0.60 |
| BSE Institutional Turnover | ||||||
|---|---|---|---|---|---|---|
|
| FII | DII | ||||
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
| 15-Feb-12 | 4,660.46 | 2,821.61 | 1,838.85 | 2,183.94 | 2,497.41 | -313.47 |
| 14-Feb-12 | 2,955.58 | 1,925.46 | 1,030.12 | 1,109.31 | 1,517.95 | -408.64 |
| 13-Feb-12 | 2,600.01 | 2,130.24 | 469.77 | 832.72 | 1,430.03 | -597.31 |
| Feb , 12 | 41,035.25 | 29,606.78 | 11,428.47 | 14,471.65 | 19,941.00 | -5,469.35 |
| FII DERIVATIVES STATISTICS FOR 15-Feb-2012 | |||||
|---|---|---|---|---|---|
|
| Buy | Sell | OI (End of day) | Net Position | |
|
| Rs (crore) | Rs (crore) | No. of contracts | Rs (crore) | Rs (crore) |
| Index Futures | 2973.13 | 2202.94 | 599232 | 16595.17 | 770.19 |
| Index Options | 19627.46 | 18204.38 | 1593608 | 44073.30 | 1423.08 |
| Stock Futures | 3706.00 | 4212.18 | 1085000 | 32839.15 | -506.19 |
| Stock Options | 1017.42 | 1053.78 | 63366 | 1913.97 | -36.36 |
| Total | 27324.00 | 25673.28 | 3341206 | 95421.60 | 1650.72 |
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