Indian Markets May Open Sideways, Outlook Positive For The Day

DSIJ Intelligence / 08 May 2012

Indian equity markets may open marginally negative. The SGX Nifty is trading down by 3 points at 5128 indicating a flattish gap down opening to markets today.

Opening Bias

The Indian equity markets may open marginally negative. The SGX Nifty is trading down by 3 points at 5,128, indicating a flattish gap down opening to the markets today.

Benchmark Indices

Index

Closing

% Change

SENSEX

16912.71

0.48

NIFTY

5114.15

0.54

Dow Jones

13008.53

-0.23

S&P 500

1369.58

0.04

NASDAQ

2957.76

0.05

Bovespa

61220.43

0.66

FTSE

5655.06

0.00

DAX

6569.48

0.12

CAC

3214.22

1.65

LIVE

Hang Seng

20585.58

0.24

Nikkei

9177.58

0.64

Shanghai

2439.58

-0.50

Yesterday, the equity markets had quite a roller-coaster ride. After plunging downwards in the early market hours, key benchmark indices rebounded from their day’s low in late noon deals and ended in the green, all thanks to Finance Minister Pranab Mukherjee announcing the deferment of General Anti-Avoidance Rule (GAAR) by one year. We at DSIJ are of the view that with the deferment of the controversial GAAR by another year, a lot of uncertainty has been taken off the Indian markets. However, from a long-term point of view, the markets would await further clarity from the government on its various other tax issues and some positive momentum on the reforms front.

Key Global Indicators

Particulars

Gold (Rs/10gm)

Crude ($/bbl)

Spot

28416

113.1

% change

-

-0.05

Future

28926

97.79

% change

-0.89

-0.15

Overnight, on the global front, the US stocks ended on a flat note, as investors reflected on voting results over the weekend in which Greece and France rejected pro-austerity candidates. Most European stock markets, with the exception of FTSE 100 and Greece, rebounded Monday after initially tumbling in the wake of weekend election results in France and Greece, boosted by gains for resources and construction companies. The stock markets in Asia have posted marginal gains in early trades, staging a partial recovery from the sharp previous session losses. 

Currency Rates

Particulars

Rs/$

Rs/Euro

Rs/GBP

Rs100/JYP

RBI Rate

53.3420

69.3655

86.0913

66.8700

Future

53.1750

69.2800

85.9500

66.6025

In conclusion, looking at the positive impetus given by the FM to the markets on the tax laws’ front coupled with the somewhat improving sentiments on the global front, we expect the markets to remain positive today amidst some volatility. With the March quarter results’ season picking up pace, one has keep a close track of stocks which are going to announce their March quarter results since the management guidance will provide cues for the stock as well as for the sector. We advise investors to remain cautious while taking investment decisions. 

Stocks In Action

According to a press release on the BSE, state-run Bank of India (BoI) has acquired 51 per cent stake in Bharti Axa Mutual Fund for an undisclosed amount. Bank of India and AXA Investment Managers Asia Holding have now, upon receipt of all regulatory approvals, completed the formalities for the acquisition of 51 per cent of the equity stake of Bharti AXA Investment Managers and Bharti AXA Trusteeship Services, says the press release.With the acquisition, Bharti Enterprises, which had about 25 per cent stake in the fund house, has made an exit from the asset management business.

According to a filing to both the exchanges, housing finance lender HDFC Ltd today reported 16 per cent jump in net profit at Rs 1,326.14 crore for the fourth quarter ended March, 2012. The company had net profit of Rs 1,141.95 crore in the January-March quarter of the previous fiscal. The total income rose to Rs 4,884.7 crore in the quarter ended March 31 from Rs 3,774.1 core in the corresponding period a year ago, registering an increase of 29 per cent. The board proposed a dividend of Rs 11 per share on the face value of Rs 2 each for the financial year 2011-12. For the entire fiscal ended March 31, 2012, the company reported a 17 per cent rise in net profit at Rs 4,122.6 crore, compared to Rs 3,534.9 crore in 2010-11. During the year, its total income improved to Rs 17,332.9 crore from Rs 12,878.9 core in 2010-11. The net interest margin of HDFC stood at 4.4 per cent at the end of March 2012. As of March 31, 2012, the loan book stood at Rs 1,40,875 crore as against Rs 1,17,127 crore in the previous year, reflecting an increase of 20 per cent. With regard to the asset quality, its gross non-performing loans stood at Rs 1,069 crore at the end of 2011-12, which is equivalent to 0.74 per cent of the portfolio.

According to Business Standard, worried over the possibility of its employees dragging the airline management to the labour court over non-payment of salaries, Kingfisher Airlines has assured the staff of paying their January salaries from Wednesday onwards. The airliner has also expressed hope that it would return to the global distribution network of IATA shortly. Beleaguered Kingfisher Airlines was earlier suspended for non-payment of dues by the IATA in March from participating in a system which enables airlines to settle their interline billings globally.

According to a press release on the BSE, auto components major Bosch today reported 22.39 per cent increase in net profit at Rs 335.82 crore for the quarter ended March 31. Bosch had posted net profit of Rs 274.39 crore in the January-March quarter last year. The total income during the quarter moved up by 10.03 per cent to Rs 2,295.04 crore as against Rs 2,085.79 crore in the year-ago period.

According to a press filing on the BSE, Kerala-based South Indian Bank has registered the highest ever annual net profit at Rs 401.66 crore for 2011-12, up by 37.29 per cent from Rs 292.56 crore in the previous fiscal. The net profit for the quarter ending March 31 was up by 49.17 per cent to Rs 121.96 crore as against Rs 81.76 crore in the last quarter of the previous year. The bank’s business increased to Rs 64,136 crore from Rs 50,520 crore on a year-to-year basis. While the deposits increased by 22.81 per cent from Rs 29,721 crore to Rs 36,501, the advances grew by 32.87 per cent from Rs 20,799 crore to Rs 27,635 crore. The CASA of the bank grew from Rs 6,404 crore to Rs 7,179 crore, up by 12.11 per cent. The bank plans to increase its branches and ATMs to 750 each by the next fiscal.

Corporate Action

Stocks Paying Dividend (Ex-Date)

Scrip Name

Action

Rs

Marico

2nd Interim Dividend

-

Orient Refractories

Interim Dividend

1.00

State Bank Trav

Final Dividend

2.00

Results Today

Scrip Name

Action

Scrip Name

Action

Scrip Name

Action

Apar Ind

Mar-12

GIC Housing Fin

Mar-12

Surana Ind

Mar-12

CESC

Mar-12

Garden Silk Mil

Mar-12

TRF

Mar-12

Ceat

Mar-12

Glenmark

Mar-12

Tata Coffee

Mar-12

Central Bank

Mar-12

Hanung Toys

Mar-12

UCAL Fuel

Mar-12

Crest Animation

Mar-12

Jayant Agro-Org

Mar-12

Whirlpool

Mar-12

Dena Bank

Mar-12

Oriental Hotels

Mar-12

Eimco Elecon

Mar-12

Puravankara Pro

Mar-12

Electrosteel St

Mar-12

Shriram TransFi

Mar-12

Emami

Mar-12

Smartlink Net

Mar-12

Federal-Mogul

Mar-12

Sudar Garments

Mar-12

BSE Institutional Turnover

 

 FII

 DII

Trade Date

 Buy

 Sales

 Net

 Buy

 Sales

 Net

7-May-12

2,162.56

2,793.37

-630.81

1,327.64

1,053.87

273.77

4-May-12

3,419.72

2,991.80

427.92

1,118.42

1,398.53

-280.11

3-May-12

2,361.49

2,287.75

73.73

791.09

1,138.09

-347.00

May , 12

10,185.47

10,077.15

108.32

4,176.40

4,458.62

-282.22

FII DERIVATIVES STATISTICS FOR 07-May-2012

 

Buy

Sell

OI (End of day)

Net Position

Particulars

Rs (crore)

Rs (crore)

No. of contracts

Rs (crore)

Rs (crore)

Index Futures

2654.30

2713.20

373931

9335.47

-58.90

Index Options

24383.21

24200.64

1261902

32261.37

182.57

Stock Futures

1611.49

2202.20

845137

21011.48

-590.71

Stock Options

1054.72

1022.81

35798

918.36

31.92

Total

29703.73

30138.84

2516768

63526.68

-435.11


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