Indian Markets May Open Negative
DSIJ Intelligence / 09 Mar 2012
Indian markets may continue its loosing streak and open negative. The SGX Nifty is trading down by 9 points at 5308 indicating a gap down opening to markets today.
Opening Bias
The Indian markets may continue with their losing streak and open negative. The SGX Nifty is trading down by 9 points at 5,308, indicating a gap down opening to the markets today.
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 17145.52 | -0.16 |
| NIFTY | 5220.45 | -0.04 |
| Dow Jones | 12907.94 | 0.55 |
| S&P 500 | 1365.91 | 0.98 |
| NASDAQ | 2970.42 | 1.18 |
| Bovespa | 66908.39 | 1.35 |
| FTSE | 5859.73 | 1.18 |
| DAX | 6834.54 | 2.45 |
| CAC | 3478.36 | 2.54 |
| LIVE | ||
| Hang Seng | 20957.9 | 0.27 |
| Nikkei | 9929.14 | 1.64 |
| Shanghai | 2428.3 | 0.33 |
Overnight, the US stocks extended gains into a second session as a deadline for private bond-holders to exchange Greece-issued debt passed with what looked to be adequate participation, removing an obstacle to Greece’s second bailout. Media reports from the estranged euro region suggested that Greece completed a crucial debt swap with private creditors on clearing the way for the country to substantially lower its debt burden and moving it closer to receiving a badly needed second official bailout.
The Asian shares have opened up on a positive note as China’s consumer price index rose at a weaker-than-expected rate of 3.2 per cent in February from an increase of 4.5 per cent seen in January. An economist’s poll conducted by Dow Jones Newswires and FactSet Research expected the February CPI in China to grow at 3.4 per cent.
| Currency Rates | ||||
|---|---|---|---|---|
|
| Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP |
| RBI Rate | 50.5733 | 66.4959 | 79.5670 | 62.6300 |
| Future | 50.5325 | 66.3400 | 79.4200 | 62.6325 |
Back home, the much-awaited Multi Commodity Exchange of India (MCX) IPO is expected to list today. While the grey market premium attached to the offer suggests a listing price of Rs 1,400-1,500 per share as against an issue price of Rs 1,032 a share, market participants must remember that owing to the new SEBI norms, MCX’s shares will go through a period of pre-open trades, which will last for the first hour of trading. To read further on SEBI norms for IPO, we suggest you refer to our article ‘What To Expect From The MCX Listing On March 9?’ dated March 7, 2012.
As a reminder to all our readers, while there is no arguing the fundamental and financial prowess of MCX India, we advise our readers to book profits on listing and await further clarity on the company over the coming quarters. There is also the overhang of the proposed commodity transaction tax (CTT) which could seriously affect the commodity trading business. With the Union Budget around the corner, the shares of MCX may also witness heavy volatility post listing. Hence it would be best to book profits on listing today and re-enter the counter at cheaper levels. Anyway, we shall update our reader through our post-issue analysis on MCX IPO shortly.
| Key Global Indicators | ||
|---|---|---|
|
| Gold (Rs/10gm) | Crude ($/bbl) |
| Spot | 27380 | 125.37 |
| % change | - | -0.17 |
| Future | 27966 | 106.81 |
| % change | 0.27 | 0.22 |
Moving on, a recent Reuter’s survey of 25 economists has suggested that India’s industrial output probably edged higher in January but remained subdued as an increase in production of consumer goods was offset by declines in the capital goods and mining sectors. The 25 economists polled showed that they expected the Indian industrial production (IIP) to have grown by a median 2.1 per cent in January from a year earlier, compared with 1.8 per cent in the previous month. However, judging by the dismal core sector growth of 0.5 per cent for the month of January, which has a 38 per cent weightage in IIP, we at DSIJ believe that the IIP for January would slip well below the expected 2.1 per cent. The IIP for January would be announced on March 12, 2012.
In conclusion, we expect the markets to remain volatile for the day with wild swings in the positive and negative zone. Our advice to readers is to adopt the ‘wait and watch’ strategy ahead of some key events expected next week. These events would turn the markets highly volatile and it’s best not to take any bold positions at such times. For those who wish to play the situation, we recommend the use of F&O strategies.
Stocks In Action
According to CNBC-TV18, the Ministry of Corporate Affairs’ technical scrutiny into Unitech’'s FY09 balance-sheet has uncovered prima facie violations under the provisions of Section 211 of the Companies Act as well as six instances of Unitech not complying with accounting standards 11, 17 and 18. Section 211 deals with true and fair value in a balance-sheet, whereas the accounting standards deal with forex, segment reporting and related party deals. Though the company has stated that these allegations are mere clarifications, we expect negative action in the counter today.
Expect negative action in the scrip of Kingfisher Airlines (KFA) as the International Air Transport Association (IATA) has suspended the company from selling air tickets due to non-payment of dues. Though it is believed that negotiations are going on between the two parties, there is still no clarity about this issue.
According to Business Standard, Tata Steel is looking to foray into merchant mining, a move that could mark the emergence of a new metals and mining powerhouse. Tata Steel is in the process of completing a feasibility study on New Millennium Iron Corp’s Taconite Project, which is potentially the largest mining project in Canada. The capital cost of the project, which includes significant infrastructure cost, will be to the tune of USD 4.4 billion. A power transmission line will have to be built and the fine concentrate is expected to be pumped via a 700 km slurry pipeline to the port. We expect positive action in the counter today.
According to a BSE press release, IL&FS Transportation Networks has emerged as the lowest bidder for an NHAI project in West Bengal and Odisha. The project is for the construction of new bridges, structures and repair of the NH 60 stretch between West Bengal and Odisha. The company added that the project is on a toll basis with a concession period of 24 years, including construction period of 2.5 years, and the estimated cost of the project is Rs 471.05 crore. Besides, the project also involves operations and maintenance of the existing four-lane highway under NHDP Phase-I from Kharagpur in West Bengal to Baleshwar in Odisha.
Expect negative action in the mining stocks of Sesa Goa and others as according to Economic Times, the recently elected Goa’s prime minister, Manohar Parrikar, has said that his government will close down all the illegal iron ore mines in the state, dealing a body blow to the Rs 1 lakh crore industry already reeling under scandals, closures and intense government and Supreme Court investigations into its practices.
Corporate Action
| Stocks Paying Dividend (Ex-Date) | ||
|---|---|---|
| Scrip Name | Action | Rs |
| BANK BEES | Dividend | 11.00 |
| Glaxosmithkl Cons | Dividend | 35.00 |
| NIFTY BEES | Dividend | 10.00 |
| BSE Institutional Turnover | ||||||
|---|---|---|---|---|---|---|
|
| FII | DII | ||||
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
| 7-Mar-12 | 2,240.41 | 2,745.00 | -504.59 | 984.58 | 1,114.49 | -129.91 |
| 6-Mar-12 | 2,629.95 | 2,871.17 | -241.22 | 1,238.12 | 1,058.21 | 179.91 |
| 5-Mar-12 | 1,867.04 | 1,741.54 | 125.50 | 827.42 | 1,085.75 | -258.33 |
| Mar , 12 | 11,279.48 | 11,457.16 | -177.68 | 5,048.40 | 5,342.05 | -293.65 |
| FII DERIVATIVES STATISTICS FOR 07-Mar-2012 | |||||
|---|---|---|---|---|---|
|
| Buy | Sell | OI (End of day) | Net Position | |
|
| Rs (crore) | Rs (crore) | No. of contracts | Rs (crore) | Rs (crore) |
| Index Futures | 2287.94 | 3030.61 | 499120 | 13062.22 | -742.67 |
| Index Options | 19851.30 | 19986.69 | 1710775 | 44651.04 | -135.39 |
| Stock Futures | 1672.18 | 1855.59 | 987756 | 27971.49 | -183.41 |
| Stock Options | 734.16 | 731.08 | 53940 | 1499.15 | 3.08 |
| Total | 24545.58 | 25603.96 | 3251591 | 87183.89 | -1058.38 |
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.