Indian Markets May Open Negative Tracking Weak Global Cues
DSIJ Intelligence / 20 Apr 2012
The Indian equity markets may open negative in line with the weak global cues. The SGX Nifty is trading down by 33 points at 5,334, indicating a gap down opening to the markets today.
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 17503.71 | 0.64 |
| NIFTY | 5332.40 | 0.61 |
| Dow Jones | 12964.1 | -0.53 |
| S&P 500 | 1376.92 | -0.59 |
| NASDAQ | 3007.56 | -0.79 |
| Bovespa | 62618.40 | -0.62 |
| FTSE | 5744.50 | -0.01 |
| DAX | 6671.20 | -0.90 |
| CAC | 3174.02 | -2.05 |
| LIVE | ||
| Hang Seng | 20919.9 | -0.36 |
| Nikkei | 9549.64 | -0.40 |
| Shanghai | 2380.88 | 0.09 |
Overnight, the US stocks declined into a loss for the week as disappointing economic data and unease over Europe offset the positive corporate results. The US economic reports painted a mixed picture. While the manufacturing and jobless data came below expectations, the Conference Board’s index of US’ leading indicators climbed for a sixth month in March, signalling economic expansion. The sales of previously owned homes fell last month for the third time in four, underscoring the ongoing struggle in the housing market.
There also have been fresh concerns flagged off from the Middle East and African Regions (MENA) as Sudan and its southern rival South Sudan inched towards a ruinous war as Sudan’s President Omar Hassan Ahmed Bashir threatened to teach the world’s newest country “a final lesson by force”. A protracted war between Sudan and South Sudan would almost certainly have a devastating civilian toll and seriously damage the oil sector on which both the economies depend.
| Currency Rates | ||||
|---|---|---|---|---|
| Particulars | Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP |
| RBI Rate | 51.8930 | 68.0630 | 83.1845 | 63.6500 |
| Future | 52.2275 | 68.3675 | 83.6950 | 63.9100 |
Back home, among the major corporate results to be announced today are Reliance Industries and Cairn India. The markets would keenly watch out for the results of these two oil & gas majors. The street expects Cairn India to report higher revenues and consequently higher operating margins in its March quarter results buoyed by improved production and realisations from its oil & gas fields. The net profit growth may be flat owing to forex fluctuations.
Reliance Industries may have yet another disappointing quarter as the street expects its profit after tax to de-grow by 4 per cent to Rs 4,224 crore in the March quarter as against Rs 4,440 crore in the December 2011 quarter. On a yearly basis the net profits might decline by 21 per cent. Sales are seen going down by 1 per cent to Rs 84,300 crore from Rs 85,135 crore quarter-on-quarter. During the same period, the operating profit margin is seen declining at 8.1 per cent versus 8.56 per cent. We at DSIJ expect all three of RIL’s business segments to under-perform this quarter. The key things to watch out would be its GRMs and other income. While we expect GRMs from the quarter to once again come below the benchmark Singapore margins, the other income too is expected to notch up a good increase.
| Key Global Indicators | ||
|---|---|---|
| Particulars | Gold (Rs/10gm) | Crude ($/bbl) |
| Spot | 27516 | 117.38 |
| % change | - | -0.05 |
| Future | 28640 | 102.48 |
| % change | 0.43 | 0.21 |
In conclusion, for today we foresee the markets remaining negative. 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 Business Standard, riding high on new launches and its rapid expansion into the hinterlands, Hero MotoCorp has pushed its total production capacity to 7 million units — that is, more than 800 units per hour. The world’s largest two-wheeler producer (formerly called Hero Honda), which has a share of 45 per cent in the domestic two-wheeler market, said it was now looking to beat the industry growth of 10-12 per cent projected for this financial year. The company is believed to be making strides in expanding its capacity further by setting up new plants, one of which would come up in South India. Hero MotoCorp presently has three operational plants in the country, located in Gurgaon, Dharuhera (Haryana) and Haridwar (Uttarakhand).
According to a press release on the BSE, IndusInd Bank has reported over 30 per cent jump in net profit at Rs 223.38 crore for the fourth quarter ended March 31, driven by increase in advances. The total income increased to Rs 1,773.07 crore in the January-March 2012 period from Rs 1,230.47 core in the same quarter last fiscal. The net interest income (interest earned less interest expended) during Q4 was Rs 464.4 crore, as against Rs 388.08 crore in the same period a year ago, registering a growth of 19.66 per cent. As on March 31, 2012, the advances of Indusind Bank stood at Rs 35,063.95 crore, up from Rs 26,165.65 crore year-on-year.
According to a filing with both the exchanges, engineering, procurement and construction player Supreme Infrastructure has bagged two orders worth Rs 283 crore in Punjab and Delhi in the highways and building construction segment. The company has bagged Rs 117 crore order for a BOT (build, operate and transfer) road project from the Punjab Public Works Department and another order worth Rs 166 crore for a building project from Delhi Urban Shelter Improvement Board. The company is present in seven verticals and six states in the infrastructure space.
According to a press release on the BSE, cement manufacturer ACC has reported 56.72 per cent decline in consolidated net profit to Rs 151.55 crore for the January-March quarter due to steep escalations in input costs and a one-time charge for depreciation amounting to Rs 355 crore. Adjusting for the depreciation, the company has posted a good 38 per cent rise in its net profits. The sales grew by 18 per cent to Rs 3,015 crore over the previous year’s numbers.
Corporate Action
| Stocks Paying Dividend (Ex-Date) | ||
|---|---|---|
| Scrip Name | Action | Rs |
| Claris Lifesciences | Dividend | 2.00 |
| R Systems | Final Dividend | 3.60 |
| Results Today | |||
|---|---|---|---|
| Scrip Name | Action | Scrip Name | Action |
| Cairn India | Mar-12 | RIL | Mar-12 |
| FAG Bearings | Mar-12 | State Bank BikJpr | Mar-12 |
| Mastek | Mar-12 | Sundaram Clayton | Mar-12 |
| Merck | Mar-12 | ||
| BSE Institutional Turnover | ||||||
|---|---|---|---|---|---|---|
|
| FII | DII | ||||
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
| 19-Apr-12 | 1,866.75 | 1,969.21 | -102.46 | 936.84 | 835.84 | 101.00 |
| 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 |
| April , 12 | 22,771.42 | 22,866.94 | -95.52 | 11,266.28 | 11,488.73 | -222.45 |
| FII DERIVATIVES STATISTICS FOR 19-April-2012 | |||||
|---|---|---|---|---|---|
|
| Buy | Sell | OI (End of day) | Net Position | |
| Particulars | Rs (crore) | Rs (crore) | No. of contracts | Rs (crore) | Rs (crore) |
| Index Futures | 1606.30 | 953.19 | 436081 | 11533.23 | 653.11 |
| Index Options | 10369.06 | 10210.86 | 1467134 | 39115.50 | 158.21 |
| Stock Futures | 1820.50 | 2191.96 | 840882 | 23995.11 | -371.46 |
| Stock Options | 703.56 | 726.97 | 50240 | 1452.12 | -23.41 |
| Total | 14499.42 | 14082.98 | 2794337 | 76095.95 | 416.45 |
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