Markets May Open Marginally Positive
DSIJ Intelligence / 19 Apr 2012
The Indian equity markets may open marginally positive. The SGX Nifty is trading up by 14 points at 5,328, indicating a gap up opening to the markets today.
Opening Bias
The Indian equity markets may open marginally positive. The SGX Nifty is trading up by 14 points at 5,328, indicating a gap up opening to the markets today.
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 17332.62 | 0.77 |
| NIFTY | 5276.85 | 0.96 |
| Dow Jones | 13032.75 | -0.63 |
| S&P 500 | 1385.14 | -0.41 |
| NASDAQ | 3031.45 | -0.37 |
| Bovespa | 63010.48 | 0.50 |
| FTSE | 5745.29 | -0.38 |
| DAX | 6732.03 | -1.01 |
| CAC | 3240.29 | -1.59 |
| LIVE | ||
| Hang Seng | 20876.36 | 0.46 |
| Nikkei | 9612.44 | -0.57 |
| Shanghai | 2013.12 | -0.09 |
Overnight, the US stocks gave up their previous day gains and closed broadly lower as investors found results from tech bellwethers IBM Corp and Intel Corp lacking. North Korea’s recent missile launch failure and the possibility of further tensions in the peninsula also kept the global investor community in fear. The good news amidst all these is that the dated Brent crude oil prices have retreated back to USD 118 per dollar level as tensions seem to be easing in Iran and as the US Energy Department report shows a larger-than-expected supply gain. Oil inventories in the US rose to 3.86 million barrels in the week ended April 13, more than double the increase forecast in a Bloomberg survey of analysts. The refineries operated at less than 85 per cent of capacity for a second week.
| Currency Rates | ||||
|---|---|---|---|---|
| Particulars | Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP |
| RBI Rate | 51.5035 | 67.5415 | 81.9884 | 63.3100 |
| Future | 51.8950 | 67.8950 | 82.9000 | 63.7650 |
Back home, the government yesterday announced the Consumer Price Index (CPI) inflation numbers for the month of March. As expected by us, the numbers have come in far too high at 9.47 per cent as against the previous month’s 8.83 per cent. Portraying the consumer level (ground reality) scenario, inflation has been increasing steadily since it was first announced in the month of January. When compared to the WPI inflation data which stood at 6.89 per cent in the month of March, the CPI numbers are alarmingly shocking. With inflation at consumer level showing no signs of abating, the RBI, which uses WPI inflation data unlike other central banks of the world for determining its policy actions, went on to surprisingly slash interest rates by 50 bps. With hikes in the retail prices of petrol and diesel yet to take effect and expectations of some bad news on this front, any such hike would prove detrimental to the economy.
| Key Global Indicators | ||
|---|---|---|
| Particulars | Gold (Rs/10gm) | Crude ($/bbl) |
| Spot | 27516 | 117.99 |
| % change | - | 0.05 |
| Future | 28530 | 102.73 |
| % change | 0.17 | 0.06 |
In conclusion, for today we see the markets remaining positive but do expect them to turn volatile towards the afternoon trading session. We reiterate our stance that with the ongoing March quarter results season it is better to stick to individual stocks rather than go bullish on any particular sector.
Stocks In Action
According to a filing to the stock exchanges, Gujarat Gas Company has executed a fully termed Gas Sales and Transportation Contract (GSTC) with GAIL (India) for the purchase of gas from the Panna-Mukta and Tapti (PMT) fields. The GSTC supersedes the previously executed Term Sheet dated March 31, 2008 pursuant to which PMT gas was sold to GGCL. The GSTC will now constitute the entire agreement between the parties in respect of the sale, purchase and transportation of PMT gas up to 2.13 mmscmd depending on the production from the PMT fields. Though this news has not brought about any major upward movement in the counter, this is positive for the company as it assures a regular supply of gas from GAIL.
According to a press release on the BSE, HDFC Bank has yet again reported a 30 per cent YoY growth in the fourth quarter (April-March) net profit to Rs 1,453 crore, driven by strong growth in loan book and fee-based income. The figure was in tune with what most analysts had estimated. The net interest income jumped by 19.3 per cent to Rs 3,388 crore, driven by loan growth of 22.2 per cent at Rs 1.95 lakh crore. Lower provisioning and higher other income too added to the bank’s profits. The other income, a big chunk of which comprises fees and commission, rose by 19 per cent YoY to Rs 1,492 crore. For the full fiscal year, the bank’s net profit rose at a littler higher pace by nearly 32 per cent to Rs 5,200 crore. We shall update readers further on the results’ front shortly.
According to Business Standard, state-owned IDBI Bank announced a cut of up to 0.5 per cent in lending and deposit rates a day after the RBI reduced key short-term rates. While IDBI Bank lowered lending rate by 0.25 per cent, it cut the fixed deposit rate by as much as 0.5 per cent. The new rates will be effective from April 20, IDBI Bank said in a statement. The bank’s loans linked to base rate will become cheaper following a 25 basis points reduction in rate to 10.50 per cent. The bank is said to have taken this proactive step keeping in view the recent policy measures announced by the RBI and the emerging market conditions expected to arise out of the transmission of these monetary measures.
Corporate Action
| Results Today | |||
|---|---|---|---|
| Scrip Name | Action | Scrip Name | Action |
| ACC | Mar-12 | Hindustan Zinc | Mar-12 |
| Ambuja Cements | Mar-12 | Indusind Bank | Mar-12 |
| BSE Institutional Turnover | ||||||
|---|---|---|---|---|---|---|
|
| FII | DII | ||||
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
| 18-Apr-12 | 2,478.00 | 2,256.37 | 221.63 | 988.09 | 950.21 | 37.88 |
| 17-Apr-12 | 2,403.64 | 1,962.49 | 441.14 | 964.09 | 1,177.30 | -213.21 |
| 16-Apr-12 | 1,341.24 | 1,850.67 | -509.43 | 932.45 | 714.22 | 218.23 |
| April , 12 | 20,904.67 | 20,897.73 | 6.94 | 10,329.44 | 10,652.89 | -323.45 |
| FII DERIVATIVES STATISTICS FOR 18-April-2012 | |||||
|---|---|---|---|---|---|
|
| Buy | Sell | OI (End of day) | Net Position | |
| Particulars | Rs (crore) | Rs (crore) | No. of contracts | Rs (crore) | Rs (crore) |
| Index Futures | 1668.91 | 1079.45 | 413041 | 10896.83 | 589.47 |
| Index Options | 12489.39 | 11084.04 | 1460313 | 38697.26 | 1405.34 |
| Stock Futures | 1315.60 | 1612.60 | 834330 | 23776.76 | -297.00 |
| Stock Options | 639.00 | 716.66 | 48804 | 1387.93 | -77.66 |
| Total | 16112.90 | 14492.75 | 2756488 | 74758.79 | 1620.15 |
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