Indian Markets May Snap Back Losses, Open Positive
DSIJ Intelligence / 02 Mar 2012
Opening Bias
Indian markets may snap back yesterday’s losses and open positive. The SGX Nifty is trading up by 24 points at 5406 indicating a gap up opening to markets today.
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 17583.97 | -0.95 |
| NIFTY | 5339.75 | -0.84 |
| Dow Jones | 12980.3 | 0.22 |
| S&P 500 | 1374.09 | 0.62 |
| NASDAQ | 2988.97 | 0.74 |
| Bovespa | 66809.80 | 1.52 |
| FTSE | 5931.25 | 1.02 |
| DAX | 6941.77 | 1.25 |
| CAC | 3499.73 | 1.37 |
| LIVE | ||
| Hang Seng | 21598.64 | 0.99 |
| Nikkei | 9749.58 | 0.43 |
| Shanghai | 2447.13 | 0.87 |
On the global front, U.S. stocks rallied and oil futures (NYMEX) briefly topped USD 110 a barrel, after data illustrated ongoing improvement on the jobs front. As per US Labor Dept. the number of Americans filing first-time claims for unemployment benefits last week fell 2,000 to 351,000, the lowest since March 2008. The four-week average dropped 5,500 to 354,000. Gold futures, which plunged heavily on Wednesday after Fed Chairman Ben Bernanke gave no hints for a third round of quantitative easing seems to have pulled it self back up a bit as it gained marginally yesterday to end at USD 1713.7 an ounce.
| Currency Rates | ||||
|---|---|---|---|---|
|
| Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP |
| RBI Rate | 49.1545 | 65.5692 | 78.2490 | 60.6700 |
| Future | 49.5400 | 66.0100 | 78.9525 | 61.1100 |
Back home, the government’s 5 per cent stake sale in ONGC via the auction route narrowly escaped disaster yesterday as market sources indicated that Life Insurance Corporation of India (LIC), the country’s largest insurer, stepped in at the behest of the govt. to fill up its coffers. Until 1520 hours, the exchange websites showed that the auction received bids for merely 1.43 crore shares as against an offer for sale of 42.77 crore. However, in the final minutes of trade it is believed that the LIC was roped in to fill the gap and save the govt. from the embarrassment otherwise. As per the final figure on the exchanges, the auction offer has received final bids for 42.04 crore shares as against 42.77 crore shares, translating into 98 per cent of the issue being subscribed. At base price of Rs 290 a share it means that the govt. would garner a minimum of Rs 12200 crore via the offer.
| Key Global Indicators | ||
|---|---|---|
|
| Gold (Rs/10gm) | Crude ($/bbl) |
| Spot | 26927 | 126.14 |
| % change | - | -0.18 |
| Future | 27942 | 108.89 |
| % change | -0.04 | 0.05 |
Though the offer seems to have ended on a successful note, the govt. would be compelled to rethink its options once again while pricing an issue in future. Despite ONGC’s strong fundamentals, the offer failed to attract much investor fancy as FII’s and other institutional buyers were miffed with the govt. strategy to offload shares at premium during an hour when the sector itself is clouded by uncertainties pertaining to subsidy share and high crude prices etc.
For today, we expect markets to remain positive much in line with global cues, but do not rule out the volatility in the markets. We shall update our readers continuously from time to time.
Stocks In Action
According to press release on the BSE, Videocon Industries has reported 46.77% decline in net profit for the fourth quarter ended December 31, at Rs 86 crore as against net profit of Rs 162.36 crore in the same period previous year. The sales during the October-December also went down by 2.4% to Rs 3,073 crore from Rs 3,151 crore in the year-ago period.
Tata Motors has reported 18.80% increase in total vehicle sales during February to 92,119 units as compared to 77,543 units in the same month last year. The total passenger vehicle sales in the domestic market stood at 34,832 units in February, up 9.1% from 31,909 units in the same month last year. In the commercial vehicles segment, the company sold 51,827 units in the domestic market during the month under review compared to 41,130 units in the corresponding period last year, an increase of 26%. Theexports increased by 20.2% to 5,415 units as against 4,504 units last year.
Auto-maker Mahindra & Mahindra reported 29% increase in sales at 43,087 units in February as compared to 33,378 units in the corresponding month of 2011. In the domestic market, the company registered a 26.5% rise in sales to 40,461 units during the month compared to 31,967 units in the year-ago period. Total sales of passenger vehicles sales stood at 20,573 units during the month under review as against 15,439 units in February 2011, translating into a 33.25% increase. Commercial vehicle sales stood at 1,255 units during the month as against 900 units in the same month a year ago, a rise of 39.44%. M&M's export sales jumped by 86.1% to 2,626 units during the month from 1,411 units in February 2011.
According to press release on the BSE, Glenmark Pharmaceuticals has received approval from US health regulator to market a generic oral contraceptive and a gel for treating skin inflammation in the American market. Glenmark Generics Inc, subsidiary of Glenmark Generics has been granted final approval for two abbreviated new drug approvals (ANDA's) from the USFDA.The approvals are for Ciclopirox Gel 0.77% and Levonorgestrel & Ethinyl Estradiol tablets USP, 0.15 mg/0.03 mg. According to IMS Health, for the 12 month period ending September 2011 total market sales achieved for Levonorgestrel and Ethinyl Estradiol tablets USP, 0.15 mg/0.03 mg were nearly $50.84 million. The company's current portfolio consists of 76 products authorised for distribution in the US market.
According to Economic Times, the Aadhaar number repository and its IT infrastructure will be run by HCL Infosystems, which has beaten TCS to win a 2,200-crore contract from the Unique ID Authority of India. It is believed that the contract is most crucial for the project as the winner is expected to handle IT and private data of about 60 crore Indian residents, by June 2013. HCL Infosystems is now expected to develop an IT backbone for the Aadhaar project, and ultimately handle the data of all 120 crore Indian residents.
Corporate Action
| Stocks Paying Dividend (Ex-Date) | ||
|---|---|---|
| Scrip Name | Action | Rs |
| CHL | Interim Dividend | 1.00 |
| BSE Institutional Turnover | ||||||
|---|---|---|---|---|---|---|
|
| FII | DII | ||||
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
| 1-Mar-12 | 2,133.21 | 2,259.73 | -126.52 | 998.54 | 1,008.51 | -9.97 |
| 29-Feb-12 | 3,666.24 | 3,086.61 | 579.63 | 1,113.77 | 1,544.84 | -431.07 |
| 28-Feb-12 | 2,937.55 | 2,209.96 | 727.59 | 1,283.87 | 1,871.08 | -587.21 |
| Mar , 12 | 2,133.21 | 2,259.73 | -126.52 | 998.54 | 1,008.51 | -9.97 |
| FII DERIVATIVES STATISTICS FOR 01-Mar-2012 | |||||
|---|---|---|---|---|---|
|
| Buy | Sell | OI (End of day) | Net Position | |
|
| Rs (crore) | Rs (crore) | No. of contracts | Rs (crore) | Rs (crore) |
| Index Futures | 1500.62 | 1852.22 | 484199 | 12972.19 | -351.60 |
| Index Options | 14843.94 | 14509.45 | 1566656 | 41823.73 | 334.49 |
| Stock Futures | 1693.59 | 2213.42 | 974612 | 28569.75 | -519.83 |
| Stock Options | 748.48 | 777.71 | 46061 | 1327.20 | -29.23 |
| Total | 18786.63 | 19352.79 | 3071528 | 84692.87 | -566.16 |
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