Indian Markets May Open Positive On Recovery Hopes
DSIJ Intelligence / 03 Apr 2012
Indian equity markets may open positive after manufacturing and auto sales data for month of March revive hopes. The SGX Nifty is trading up by 36 points at 5396 indicating a gap up opening to markets today.
Opening Bias
The Indian equity markets may open positive after the manufacturing and auto sales data for the month of March revive hopes. The SGX Nifty is trading up by 36 points at 5,396, indicating a gap up opening to the markets today.
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 17478.15 | 0.42 |
| NIFTY | 5317.90 | 0.42 |
| Dow Jones | 13264.49 | 0.40 |
| S&P 500 | 1419.04 | 0.75 |
| NASDAQ | 3119.7 | 0.91 |
| Bovespa | 65216.25 | 1.09 |
| FTSE | 5874.89 | 1.85 |
| DAX | 7056.65 | 1.58 |
| CAC | 3462.91 | 1.14 |
| LIVE | ||
| Hang Seng | 20636.9 | 0.56 |
| Nikkei | 10062.34 | -0.47 |
| Shanghai | 2262.79 | 0.00 |
The automobile sales in the domestic market soared to a record high in March 2012 as buyers advanced their purchases to avoid price hikes after the government announced an increase in excise duty, registration tax and value-added tax in the budget. According to sources, the country’s leading automobile manufacturers sold an average 18 per cent more vehicles in March 2012 over last year. Moreover, buoyed by demand in the domestic market, Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Honda and Volkswagen all closed the fiscal with record sales numbers.
| Key Global Indicators | ||
|---|---|---|
| Particulars | Gold (Rs/10gm) | Crude ($/bbl) |
| Spot | 27577 | 125.15 |
| % change | - | -0.35 |
| Future | 27882 | 105.02 |
| % change | -0.53 | -0.20 |
In other developments, the HSBC purchasing manufacturers index (PMI), a key indicator of factory output, despite falling slightly in March 2012 to 54.7 from 56.6 in February has prompted some signs of recovery. The reason is that it was not only above the 50 mark which indicates a healthy situation but for the January–March quarter it has averaged at 56.3 against 52.4 in the September-December quarter. Economists widely believe that this average quarterly improvement in data indicates a mild recovery in the overall industrial activity.
Another reason for the upbeat market sentiments can be attributed to SEBI’s decision late last night of allowing stock exchanges to get listed on the bourses. However, this is subject to a few conditions. As per SEBI, stock exchanges will now be allowed to list after their regulatory and business functions are separated to prevent a potential conflict of interest. However, self-listing of shares by the exchanges has been barred.
| Currency Rates | ||||
|---|---|---|---|---|
| Particulars | Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP |
| RBI Rate | 51.1565 | 68.3403 | 81.7992 | 62.4300 |
| Future | 51.2400 | 68.3350 | 81.9325 | 62.4850 |
Developments on the global front last night indicated towards some recovery. The US stocks rose after a gauge of national manufacturing improved, stretching Wall Street’s best three-month start since 1998 into the second quarter. The Institute for Supply Management’s factory index rose to 53.4 per cent last month from 52.4 per cent in February.
In conclusion, for today we foresee the markets swinging on the positive side. However, with the March quarter results’ season approaching soon, it is better to stick to individual stocks rather than go bullish on any particular sector.
Stocks In Action
Expect some positive action in the shares of Indian Oil Corporation (IOC) as the company has recorded the highest ever crude processing of 55.6 MT during 2011-12, surpassing the previous best of 53.0 MT achieved in the previous fiscal. IOC is the nation’s largest oil refiner with 54.2 MT of refining capacity. It also is a majority stakeholder in Chennai Petroleum Corp Ltd, which operates two refineries of 11.50 MT capacities. India has a total refining capacity of 216.066 MT per annum.
According to a press release on the stock exchanges, cement maker ACC has sold 2.34 MT cement in March, up by 7.3 per cent over the same month last year. The company, in which Swiss major Holcim holds a majority stake, had sold 2.18 million tonnes cement in March 2011. In the January-March period of 2012 the sales of the company stood at 6.72 million tonnes compared to 6.22 million tonnes in the same period last year. The production during the period under review stood at 6.70 million tonnes against 6.20 million tonnes in the year-ago period.
According to Economic Times, Oil and Natural Gas Corp (ONGC) has declined to participate in the stake sale of the pipeline company Reliance Gas Transportation Infrastructure (RGTIL) owned by Mukesh Ambani and the other promoters of Reliance Industries, but other state firms such as Oil India and Gail India are evaluating the prospect. It is believed that ONGC declined the proposition as pipelines were not its core area of business. However, GAIL cited its necessity to expand a nationwide network and Oil India explained the need to diversify as their main reasons to show interest. The only concern lurking over the RGITL is the flagging KG-D6 output which is not expected to show any uptick signals till the year 2016.
According to Economic Times, Indian companies will have to pay more for renewing their insurance policies as reinsurance companies have raised premium rates by up to 15 per cent after burning their fingers in a record number of natural catastrophes last year. General Insurance Corporation of India, which is the designated national reinsurer, has decided to cut its exposure to the domestic market.
Corporate Action
| Stocks Paying Dividend (Ex-Date) | ||
|---|---|---|
| Scrip Name | Action | Rs |
| Gateway Distr | 2nd Interim Dividend | 3.00 |
| Honeywell Auto | Dividend | 10.00 |
| United Phos | Interim Dividend | 2.00 |
| BSE Institutional Turnover | ||||||
|---|---|---|---|---|---|---|
|
| FII | DII | ||||
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
| 2-Apr-12 | 1,861.47 | 1,615.53 | 245.94 | 770.91 | 843.72 | -72.81 |
| 30-Mar-12 | 5,112.70 | 4,150.05 | 962.65 | 1,096.07 | 1,263.39 | -167.32 |
| 29-Mar-12 | 3,954.15 | 5,287.00 | -1,332.85 | 1,408.00 | 1,108.33 | 299.67 |
| April , 12 | 1,861.47 | 1,615.53 | 245.94 | 770.91 | 843.72 | -72.81 |
| FII DERIVATIVES STATISTICS FOR 02-April-2012 | |||||
|---|---|---|---|---|---|
|
| Buy | Sell | OI (End of day) | Net Position | |
| Particulars | Rs (crore) | Rs (crore) | No. of contracts | Rs (crore) | Rs (crore) |
| Index Futures | 1424.48 | 1232.37 | 353987 | 9431.73 | 192.11 |
| Index Options | 11239.45 | 10484.83 | 1078874 | 28684.80 | 754.63 |
| Stock Futures | 939.28 | 1052.41 | 777292 | 22140.41 | -113.13 |
| Stock Options | 364.99 | 375.49 | 18024 | 525.24 | -10.49 |
| Total | 13968.20 | 13145.10 | 2228177 | 60782.19 | 823.10 |
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