Opening Bias
The Indian equity markets may continue their losing streak and open negative for yet another trading session as global and domestic investor sentiments turn seemingly weak. The SGX Nifty is trading down by 20 points at 4,965, indicating a gap down opening to the markets today.
| Benchmark Indices |
|---|
| Index | Closing | % Change |
|---|
| SENSEX | 16546.18 | -2.17 |
| NIFTY | 4999.95 | -2.23 |
| Dow Jones | 12932.09 | -0.59 |
| S&P 500 | 1363.72 | -0.43 |
| NASDAQ | 2946.27 | -0.39 |
| Bovespa | 60365.48 | -1.40 |
| FTSE | 5554.55 | -1.78 |
| DAX | 6444.74 | -1.90 |
| CAC | 3124.80 | -2.78 |
| LIVE |
| Hang Seng | 20333.29 | -0.74 |
| Nikkei | 9059.48 | -1.33 |
| Shanghai | 2422.95 | -1.06 |
Overnight, the US markets continued their recent losing streak and retreated further, thus sending the Standard & Poor’s 500 Index to the lowest level in almost a month, as political tension in Greece intensified concern about a euro exit and a deepening of the region’s debt crisis. The markets in Europe had a steeper decline after the leader of Greece’s biggest political party failed to reach an agreement on a new government following the elections over the weekend. The Asian markets in early morning trades have opened on a negative note, tracking the overnight weak global cues and as corporate results in Japan indicate a mixed outlook.
| Currency Rates |
|---|
| Particulars | Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP |
|---|
| RBI Rate | 52.8550 | 68.8078 | 85.4428 | 66.1200 |
| Future | 53.3900 | 69.5675 | 86.2450 | 66.8600 |
On the domestic front, the relief that was seen from the deferment of GAAR by a year has been short-lived thanks to the burgeoning euro zone crisis, which has left investors in a lurch over the health of the global economy. A pessimistic and cautious statement from RBI Deputy Governor Subir Gokran over the central bank finding very little room to cut interest rates further also spooked investors, who were worried that higher interest rates may contribute to a delay in the country’s economic recovery. Market experts have revealed that a fall in the benchmark Nifty below its 200-day moving average (DMA) of 5,114 is a clear indicator of bearish sentiment in the markets. In fact it seems that the Sensex has closed for a third straight day below its 200-day moving average (DMA) of 16,959.
| Key Global Indicators |
|---|
| Particulars | Gold (Rs/10gm) | Crude ($/bbl) |
|---|
| Spot | 28416 | 111.8 |
| % change | - | -1.05 |
| Future | 28640 | 96.61 |
| % change | -1.03 | -0.41 |
In conclusion, for today we foresee the markets remaining volatile with a negative bias for yet another session. However, some clarity from the government on the reforms’ front could see the markets turning positive. With the March quarter results’ season picking up pace, one has to 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 data from the stock exchanges, the shares of Central Bank of India yesterday tumbled by 13 per cent to Rs 76.90 after company reported net loss of Rs 105 crore for the fourth quarter ended March 2012 due to higher provisioning. The state-owned bank had posted net profit of Rs 133 crore in the year-ago quarter. Its net interest income (NII), the difference between interest paid for funds and interest earned from loans, has dipped by 17 per cent at Rs 1,184 crore on a year-on-year basis. Provisions, including for bad loans, rose almost three-fold to Rs 859 crore from Rs 306 crore a year earlier, while the net non-performing loans increased to 3.09 per cent of the total assets from 0.65 per cent, the bank said in a filing.
According to a press release on the BSE, Glenmark Pharmaceutical’s consolidated net profit rose by 32.54 per cent to Rs 150.35 crore for the fourth quarter ended March 31, 2012 on the back of robust sales in the domestic and US markets. The net sales of the company increased by 34 per cent to Rs 1,065.85 crore for the quarter ended March 31, 2012 as against Rs 795.07 crore for the corresponding period of the previous fiscal. The consolidated net profit of the company for the year ended March 31, 2012 stood at Rs 460.34 crore as against Rs 453.20 crore during the same period of the previous fiscal. The net consolidated revenues of the company for the 2011-2012 financial year stood at Rs 4,020.64 crore as against Rs 2,949.07 crore for the year-ago period.
According to the annual report of Reliance Industries, the energy conglomerate has cut estimates for proven gas reserves in its Indian blocks by 6.7 per cent to 3.67 trillion cubic feet. Reliance’s growth outlook in the recent past has been marred by falling gas output from its huge gas fields, with production less than half of what was originally estimated.
According to a press release on the BSE, Asian Paints has reported 39.52 per cent increase in its consolidated net profit for the quarter ended March 31, 2012 at Rs 259.5 crore. The consolidated sales and operating income during the fourth quarter also went up by 29.26 per cent to Rs 2,546 crore from Rs 1,969.7 crore in the year-ago period. For the entire 2011-12 financial year, the company’s consolidated net profit rose by 17.26 per cent to Rs 988.7 crore from Rs 843.2 crore in the previous fiscal. The consolidated sales and operating income increased by 24.73 per cent to Rs 9,632.2 crore.
According to a press release on the BSE, Hindalco posted a 10.6 per cent increase in net profit at Rs 708 crore for the quarter ended March 2012. The total income was up by 12 per cent at Rs 7,807 crore as against Rs 6,968 crore in March 2011. The net profit rose marginally to Rs 2,237 crore for the financial year ended March 2012. It was Rs 2,137 crore in FY11. The total income jumped by 12.4 per cent from Rs 24,206 crore in FY11 to Rs 27,212 crore in FY12.
According to Economic Times, lenders of debt-laden Bharati Shipyard have approved a debt recast of Rs 5,600 crore after the empowered group of banks, built to oversee debt restructuring, agreed to help the ship-building major tide over its financial crisis. According to the debt recast agreed upon, 10 per cent of the total fund base limits or term loan amounting to Rs 228 crore will be converted into equity in the next 18 months and a monitoring committee will watch the company’s growth in the coming months. In December, banks led by SBI had referred the company to the corporate debt restructuring forum where lenders and borrowers agree to restructure the terms of a loan to prevent the loan from being classified as a bad loan.
Corporate Action
| Stocks Paying Dividend (Ex-Date) |
|---|
| Scrip Name | Action | Rs |
|---|
| Godrej Cons | Interim Dividend | 1.75 |
| Results Today |
|---|
| Scrip Name | Action | Scrip Name | Action | Scrip Name | Action |
|---|
| ABB | Mar-12 | Mangalore Chem | Mar-12 | Union Bank | Mar-12 |
| Arvind | Mar-12 | Modi Rubber | Mar-12 | United Brew Hldg | Mar-12 |
| Century Ply-$ | Mar-12 | Network18 Media | Mar-12 | Uttam Galva | Mar-12 |
| Disa India | Mar-12 | NIIT | Mar-12 | Vardhman Tex | Mar-12 |
| Gammon Infra | Mar-12 | PNB | Mar-12 | Zuari Inds | Mar-12 |
| Gati | Mar-12 | Ranbaxy Lab | Mar-12 | Zydus Wellness-$ | Mar-12 |
| Geodesic | Mar-12 | Ravalgaon Sugar | Mar-12 | | |
| GVK Power | Mar-12 | Suraj Diamond | Mar-12 | | |
| IRB Infra | Mar-12 | Triveni Engr | Mar-12 | | |
| Jubilant Inds | Mar-12 | TV18 Broadcast | Mar-12 | | |
| BSE Institutional Turnover |
|---|
| | FII | DII |
|---|
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
|---|
| 8-May-12 | 1,905.58 | 2,304.56 | -398.98 | 1,177.65 | 920.05 | 257.60 |
| 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 |
| May , 12 | 12,091.05 | 12,381.71 | -290.66 | 5,354.05 | 5,378.67 | -24.62 |
| FII DERIVATIVES STATISTICS FOR 08-May-2012 |
|---|
| | Buy | Sell | OI (End of day) | Net Position |
|---|
| Particulars | Rs (crore) | Rs (crore) | No. of contracts | Rs (crore) | Rs (crore) |
|---|
| Index Futures | 2038.92 | 2114.58 | 401123 | 9726.69 | -75.66 |
| Index Options | 23593.28 | 23249.36 | 1375549 | 34378.03 | 343.93 |
| Stock Futures | 1720.80 | 1825.19 | 856363 | 20699.69 | -104.39 |
| Stock Options | 981.99 | 986.40 | 40327 | 1006.95 | -4.41 |
| Total | 28335.00 | 28175.52 | 2673362 | 65811.36 | 159.48 |