Indian Markets May Cut Back Losses, Open positive

DSIJ Intelligence / 17 Feb 2012

Indian markets may cut back on yesterday's losses and open positive. The SGX Nifty is trading up by 61 points at 5590 indicating a gap up opening to markets today.

Opening Bias

Indian markets may cut back on losses and open positive. The SGX Nifty is trading up by 61 points at 5590 indicating a gap up opening to markets today.

Benchmark Indices

Index

Closing

% Change

SENSEX

18153.99

-0.27

NIFTY

5521.95

-0.18

Dow Jones

12904.08

0.96

S&P 500

1358.04

1.10

NASDAQ

2959.85

1.51

Bovespa

66141.74

1.18

FTSE

5885.39

-0.11

DAX

6751.96

-0.09

CAC

3393.25

0.09

LIVE

Hang Seng

21503.59

1.06

Nikkei

9415.99

1.93

Shanghai

2371.27

0.61

On the global front, US stocks surged as the outlook for Greece’s bailout improved and American jobless claims slid to a nearly four-year low. According to the data released from US Labor Dept. the number of U.S. applicants filing first-time claims for unemployment benefits last week fell by 13,000 at 348,000, the lowest level since March 2008. The four-week average also declined, down 1,750 at 365,250, to hover near a four-year low. Asian shares are also seen trading positive on strong global cues.

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, its looks like the beleaguered IPO market may revive itself with the Multi Commodity Exchange (MCX) issue expected to open on the 22nd Feb. MCX, promoted by Financial Technologies, plans to garner Rs 663 crore from the capital markets through the issuance of 64 lakh shares at a price band of between Rs 860 to Rs 1302 per share. MCX is India’s largest commodity bourse and the 5th largest in the world. It offers services in 49 commodities and enjoys one amongst the leader’s position in key global metals and energy commodities. 

Key Global Indicators

 

Gold (Rs/10gm)

Crude ($/bbl)

Spot

27364

121.87

% change

-

0.21

Future

28138

0.16

% change

-0.11

-0.23

In other developments, Brent crude oil has surged to USD 120 per barrel, on worries about supply from Iran and from the North Sea, where output was expected to dip next month. An improvement in US economic data also added to the uptick in crude prices. Even though the strengthening of the Indian Rupee against the US dollar has helped to negate the pressure of rising crude prices to some extent, such a sharp rise would surely have its negative impact on our country’s refiners and current account balances.

In conclusion, we expect the markets to remain positive.

Stocks In Action

According to Economic Times, India Gas Solutions, the new joint venture company of Reliance Industries (RIL) and BP has held initial talks to pick up a stake in an existing operator of a liquefied natural gas (LNG) import terminal. It is believed that Shell-Hazira was a likely target. Reliance has already been importing LNG through this terminal. Last March, RIL entered into a two year pact with Hazira LNG to import spot LNG every month.  

According to press release on the BSE, Kingfisher Airlines reported a 75% wider net loss in the quarter to end-December from a year earlier, as the ailing carrier continued to feel the pinch of high fuel costs, a weaker rupee and fierce competition. Kingfisher lost Rs 444 crore in the third quarter ended December, 2011, 74.8% more than a loss of Rs 254 crore in the corresponding quarter a year ago. Revenue fell 15.2% to Rs 1,342 crore. 

According to Business Standard, telecom services major Reliance Communications has received RBI approval for the refinancing for redemption of its outstanding FCCBs (Foreign Currency Convertible Bonds) worth Rs 5,825 crore. The outstanding FCCBs of $1,182 million (approximately Rs 5825 crore at the prevailing dollar exchange rate of Rs 49.30) will be redeemed on the due date of March 1, 2012. Rcom will benefit from extended loan maturity of seven years and attractive interest cost of about 5%. The refinancing is being funded by Industrial and Commercial Bank of China (ICBC), China Development Bank (CDB) and Export Import Bank of China (EXIM).

According to sources, Reliance Industries has shut a sixth well at its gas fields in the D6 block, off the country's east coast, due to water ingress, and any clarity on the likely output from these fields will emerge by August.  Reliance, the operator of the D6 block, had earlier shut five of 18 producing wells at D1 and D3 gas fields until December. Declining gas output from the D6 block has impacted expansion plans of many power companies, and spurred demand for costly liquefied natural gas imports. Gas output from D6 may average 22.6 million standard cubic meters a day (mmscmd) in the fiscal year starting April 2013 from the current 37-38 mmscmd.

According to Economic Times, Wyeth Pharmaceuticals is seeking USD 960 million in damages from India’s Sun Pharmaceutical Industries for alleged patent infringement in launching a generic version of acid reflux drug Protonix in the US. The original patent relating to Protonix, known chemically as pantoprazole sodium, is held by Swiss drugmaker Nycomed and was licenced to Wyeth, which is now owned by Pfizer. Wyeth and Nycomed, owned by Japan’s Takeda Pharmaceutical, filed the lawsuit in the US District Court in New Jersey against Sun and Teva Pharmaceutical Industries. 

Corporate Action

Corp Action

Scrip Name

Action

Ratio

Goldiam Intl

Interim Dividend

1.10

BSE Institutional Turnover

 

 FII

 DII

Trade Date

 Buy

 Sales

 Net

 Buy

 Sales

 Net

16-Feb-12

3,251.56

3,067.25

184.31

1,383.42

1,773.74

-390.32

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

Feb , 12

44,286.81

32,674.03

11,612.78

15,855.07

21,714.74

-5,859.67

FII DERIVATIVES STATISTICS FOR 16-Feb-2012

 

Buy

Sell

OI (End of day)

Net Position

 

Rs (crore)

Rs (crore)

No. of contracts

Rs (crore)

Rs (crore)

Index Futures

2077.56

2407.13

610283

16862.35

-329.57

Index Options

18708.90

16719.31

1660566

45842.58

1989.59

Stock Futures

4514.22

5460.39

1093292

33149.33

-946.17

Stock Options

1090.29

1125.06

62695

1879.05

-34.78

Total

26390.98

25711.90

3426836

97733.32

679.08

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