Indian Markets May Extend Gains, Open Positive
DSIJ Intelligence / 29 Feb 2012
Indian markets may extend yesterday’s gains and open positive. The SGX Nifty is tradingup by 45 points at 5490 indicating a gap up opening to markets today.
Opening Bias
Indian markets may extend yesterday’s gains and open positive. The SGX Nifty is tradingup by 45 points at 5490 indicating a gap up opening to markets today.
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 17731.12 | 1.64 |
| NIFTY | 5375.50 | 1.79 |
| Dow Jones | 13005.12 | 0.18 |
| S&P 500 | 1372.18 | 0.34 |
| NASDAQ | 2986.76 | 0.69 |
| Bovespa | 65958.80 | 1.10 |
| FTSE | 5927.91 | 0.21 |
| DAX | 6887.63 | 0.56 |
| CAC | 3453.99 | 0.36 |
| LIVE | ||
| Hang Seng | 21677.13 | 0.50 |
| Nikkei | 9863.74 | 1.45 |
| Shanghai | 2438.52 | -0.54 |
Overnight, U.S. stocks rose, sending the Dow Jones Industrial Average to its first close above 13,000 since May 2008, as consumer confidence hit a 12-month high and oil prices fell. Early this morning, Japan's industrial production rose a seasonally adjusted 2.0 per cent for month of January beating analyst’s expectations for a 1.5 per cent gain. Also news has just come in that Mitt Romney won Arizona's Republican primary, notching a contest he was widely expected to win. Consequently, Asia markets have notched up solid gains early market hours buoyed by positive global sentiments.
| Currency Rates | ||||
|---|---|---|---|---|
|
| Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP |
| RBI Rate | 49.1430 | 66.0625 | 77.8573 | 60.9900 |
| Future | 49.4675 | 66.4700 | 78.3300 | 61.3700 |
Though on a broader basis the Indian equity markets are expected to have a good run today, a word of caution must fall over our country’s very own domestic industrial production which may take yet another beating for the month of Jan 2012, as the core sector growth, contributing 38 per cent to the IIP numbers grew by merely 0.5 per cent compared to the upwardly revised 4.6 per cent for month earlier. While sectors like electricity, fertilizer and coal production showed an expansion in the month of Jan, others like steel, crude oil, natural gas and refinery products contracted.
| Key Global Indicators | ||
|---|---|---|
|
| Gold (Rs/10gm) | Crude ($/bbl) |
| Spot | 27989 | 106.77 |
| % change | - | 0.21 |
| Future | 28865 | 122.84 |
| % change | 0.43 | 0.32 |
As a result, the IIP which grew at a modest 1.8 per cent in Dec 2011 is expected to contract further for the month of Jan 2012. However, having said that, the contraction in crude oil, natural gas and refinery products was mainly due to the onset of the winter season and hence going forward one may see an uptick in these data’s, which would finally bring about a positivity in the core sector growth.
For today, we expect markets to remain positive with bouts of volatility throughout the day. We shall update our readers continuously from time to time.
Stocks In Action
According to sources, a group of ministers have approved selling 5 per cent equity in state-run ONGC through a share auction. The floor price has been set at Rs 290 a share and govt. wishes to offload 42.77 crore shares and aim to raise as much as Rs 12100 crore. Our sources add that the auction will be held on 1st March 2012 with the Bombay Stock Exchange slated to be the designated stock exchange (DSE) through which the bids would be placed.
Expect shares of oil explorer Cairn Indian to witness some positive action as sources say that the company is planning to reward its shareholders with a one-time dividend.
According to Reuters, GMR Infrastructure is in talks with private equity investors to raise roughly USD 200 million by selling stakes in its road projects. The company is said to be in talks with a fund jointly managed by India's largest lender, State Bank of India, and Australia's Macquarie Group for an investment. It is also in talks with UK-based private equity firm 3i Group Plc and IDFC Project Equity, a fund managed by India's Infrastructure Development Finance Co. GMR is also said to be looking at an eventual initial public offering of its road assets. GMR Infrastructure, IDFC, 3i and SBI-Macquarie all declined to comment.
According to an article appearing in The Economic Times, Kingfisher Airlines CEO Sanjay Aggarwal has said that the company will be fully re-capitalized within six to eight weeks. As per him, the airline is confident of an equity infusion of between $500 million and $600 million through a mix of fresh funds as well as capital from the banks. His optimism is said to be based on expectations that private equity investors will find the low valuations attractive, coupled with the hope of a change in foreign investment rules allowing global airlines to invest in local carriers. Though this development will bring about some positive action in KFA counters today, we advise investors to stay away from KFA completely.
According to The Times of India, Tokyo-headquartered global technology giant NEC Corporation is in talks to acquire a controlling stake in mid-tier IT services firm Hexaware Technologies. NEC Corporation is in talks to acquire stake from the founders of the company led by Atul Nishar and his family and private equity investors General Atlantic and ChrysCapital. Its been believed that the founders and equity investors are seeking valuations of USD 800 million for Hexaware. This is a positive development and we expect positive action today on the bourses.
| Corp Action | ||
|---|---|---|
| Scrip Name | Action | Ratio |
| Plastiblends-$ | Stock Split | Rs 10/- to Rs 5/- |
| BSE Institutional Turnover | ||||||
|---|---|---|---|---|---|---|
|
| FII | DII | ||||
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
| 28-Feb-12 | 2,937.55 | 2,209.96 | 727.59 | 1,283.87 | 1,871.08 | -587.21 |
| 27-Feb-12 | 2,957.94 | 2,628.85 | 329.09 | 1,206.72 | 1,905.86 | -699.14 |
| 24-Feb-12 | 11,138.59 | 2,183.29 | 8,955.30 | 1,055.99 | 1,892.70 | -836.71 |
| Feb , 12 | 77,643.00 | 53,147.40 | 24,495.60 | 25,723.84 | 37,147.62 | -11,423.78 |
| FII DERIVATIVES STATISTICS FOR 28-Feb-2012 | |||||
|---|---|---|---|---|---|
|
| Buy | Sell | OI (End of day) | Net Position | |
|
| Rs (crore) | Rs (crore) | No. of contracts | Rs (crore) | Rs (crore) |
| Index Futures | 2478.78 | 1538.43 | 486662 | 13192.31 | 940.35 |
| Index Options | 14717.46 | 13669.75 | 1462804 | 39314.30 | 1047.71 |
| Stock Futures | 1842.05 | 2334.10 | 948371 | 27974.36 | -492.05 |
| Stock Options | 709.92 | 705.64 | 36501 | 1067.97 | 4.28 |
| Total | 19748.21 | 18247.92 | 2934338 | 81548.95 | 1500.29 |
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