Opening Bias
The Indian equity markets may cut losses and open positive today. The SGX Nifty is trading up by 15 points at 4,995, indicating a gap up opening to the markets today.
| Benchmark Indices |
|---|
| Index | Closing | % Change |
|---|
| SENSEX | 16479.58 | -0.40 |
| NIFTY | 4974.80 | -0.50 |
| Dow Jones | 12835.06 | -0.75 |
| S&P 500 | 1354.58 | -0.67 |
| NASDAQ | 2934.71 | -0.39 |
| Bovespa | 59786.12 | -0.96 |
| FTSE | 5530.05 | -0.44 |
| DAX | 6475.31 | 0.47 |
| CAC | 3118.65 | -0.20 |
| LIVE |
| Hang Seng | 20348.83 | 0.09 |
| Nikkei | 9019.43 | -0.28 |
| Shanghai | 2412.96 | 0.18 |
Overnight, the US stocks declined, leaving the Dow industrials in the red for the sixth session as investors fretted about political uncertainty in Greece and the funding of Spanish banks. The European stock markets also followed suit as investors became anxious about the possibility of yet another sovereign debt crisis. The Asian markets in the early morning trades have been showing a mixed reaction as investors have reacted to both, the negative sentiments from Europe as well as the corporate earnings in Japan.
| Currency Rates |
|---|
| Particulars | Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP |
|---|
| RBI Rate | 53.4600 | 69.4005 | 86.2711 | 67.0000 |
| Future | 54.1000 | 70.1750 | 87.1050 | 67.9250 |
Back home, there just doesn’t seem to be any respite on the forex front for investors. Despite the easing of the controversial GAAR, which boosted hopes about the FIIs re-entering the markets and bringing in the crucial dollar inflows, the ground reality is horrendously very different. The Indian rupee has fallen the most since December to a new closing low yesterday and currency strategists forecast more pain as the central bank intervention remains limited and inflows dry up. According to the data on NSE, the rupee at the current level of Rs 54.1 per dollar stands seemingly close to its all-time low of Rs 54.3 per dollar as on December 15, 2011.
| Key Global Indicators |
|---|
| Particulars | Gold (Rs/10gm) | Crude ($/bbl) |
|---|
| Spot | 28416 | 113.03 |
| % change | - | 0.58 |
| Future | 28673 | 96.79 |
| % change | 0.08 | -0.02 |
This 7.2 per cent fall in the value of rupee since the budget announcement primarily has been because of India’s week economic fundamentals. India’s current account deficit is at 4.3 per cent of its GDP and errantly inching higher. The balance of payments i.e. the difference in total value between payments into and out of a country has also turned negative for the first time in the December quarter of 2011. With repayment commitments on more than USD 150 billion of debt to be done this year, the government has gone all guns blazing in easing the pressure by relaxing the repayment and conversion conditions on companies’ overseas convertible bonds.
In conclusion, for today we foresee the markets remaining volatile with a positive bias. 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
IT firm, Vakrangee Software, has bagged a five-year deal worth Rs 750 crore from the Rajasthan government to design, deploy and operate common service centers in the state. The approximate value of the project is Rs 750 crore, the company stated in a filing to the BSE.
Private air carrier Jet Airways said it plans to introduce a new flight service on the Mumbai-Dubai sector from May 18. The new service will complement the three flights operated by Jet Airways on the high-demand route, a company press release stated.
Edinburgh-based Cairn Energy Plc said it has completed the acquisition of Agora Oil and Gas, a Norwegian company with oil and gas exploration assets in the UK and Norwegian North Sea. “Cairn is pleased to announce that, further to the announcement made on April 3, 2012, it has received all the required approvals and today completed the acquisition of Agora Oil & Gas AS. Agora is now a part of the Cairn group of companies,” a company statement said.
Media conglomerate Network18 Group widened its net loss to Rs 168.1 crore for the fourth quarter ended March 31, 2012 from Rs 44.1 crore recorded during the corresponding period in the previous financial year. The widening of net loss was on account of NW18 incurring one-time losses of Rs 23.9 crore for discontinued operations - deferring the launch of a proposed Hindi movie channel and The Indian Film Company (TIFC). NW18 incurred further loss of Rs 30.1 crore during the quarter because of the launch of new channels — Sonic, Comedy Central and Colors HD and History TV18.
Drug major Ranbaxy Laboratories is setting up two new manufacturing facilities in Nigeria and Malaysia as a part of its efforts to boost the overall business. “It’s a company strategy. We will be consolidating our position in the emerging markets and we have selected certain key emerging markets,” said Arun Sawhney, CEO and Managing Director, Ranbaxy during a conference call with investors. However, Sawhney did not disclose any financial details about the plants. Malaysia, South Africa, Nigeria, Egypt and Morocco are among the strategic markets identified by the pharma major.
Reliance Industries has raised a USD 2 billion (Rs 10,000 crore) loan from German banks to finance its petrochemical plant expansion. The facility has a door-to-door (tenure) maturity of 13 years and is backed by German credit insurance provider Euler Hermes SA, RIL said in a statement. RIL has signed a USD 2 billion equivalent loan with nine banks covered by Euler Hermes Deutschland AG on May 7 at Berlin, Germany, the statement added.
In an attempt to de-risk its exploration business, state-owned Oil and Natural Gas Corporation (ONGC) plans to foray into the gas retailing business through a new subsidiary, ONGC Gas Ltd. ONGC would use the new subsidiary for its foray into the city gas distribution business and sale of imported liquefied natural gas (LNG), company officials said. The new unit may be aimed at making amends to the company letting go of earlier lucrative opportunities to enter the gas business. Though being the country’s largest natural gas producer at around 55 million cubic meters per day, ONGC has virtually no presence in the marketing of the environment-friendly fuel.
The government has initiated legal action against Kingfisher Airlines “towards dishonour of the cheques submitted” by the carrier, while Jet Airways and Spicejet have been served notices on overdues, government sources revealed.
Corporate Action
| Stocks Paying Dividend (Ex-Date) |
|---|
| Scrip Name | Action | Rs |
|---|
| Goodyear India | Dividend | 7.00 |
| Hexaware Tech | Interim Dividend | 1.50 |
| Results Today |
|---|
| Scrip Name | Action | Scrip Name | Action | Scrip Name | Action |
|---|
| Apcotex Inds | Mar-12 | Jain Irrigation | Mar-12 | NELCO | Mar-12 |
| Apollo Tyres | Mar-12 | JUBL FOOD | Mar-12 | NTPC | Mar-12 |
| Cadila Health | Mar-12 | Kale Consl | Mar-12 | Prakash Constrowell | Mar-12 |
| Canara Bank | Mar-12 | Kewal Kiran | Mar-12 | Prism Cement | Mar-12 |
| Cipla | Mar-12 | Kokuyo Camlin-$ | Mar-12 | Ricoh India | Mar-12 |
| Dewan Housing | Mar-12 | Lupin | Mar-12 | Ruby Mills | Mar-12 |
| Escorts | Mar-12 | Microse India | Mar-12 | Sintex Inds | Mar-12 |
| Gujarat Sidh | Mar-12 | MidValley Entertainment | Mar-12 | Spanco-$ | Mar-12 |
| HEG | Mar-12 | Navneet Pub | Mar-12 | Usha Martin | Mar-12 |
| BSE Institutional Turnover |
|---|
| | FII | DII |
|---|
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
|---|
| 9-May-12 | 2,202.18 | 2,578.52 | -376.34 | 1,222.15 | 1,059.78 | 162.37 |
| 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 |
| May , 12 | 14,293.23 | 14,960.23 | -667.00 | 6,576.20 | 6,438.45 | 137.75 |
| FII DERIVATIVES STATISTICS FOR 09-May-2012 |
|---|
| | Buy | Sell | OI (End of day) | Net Position |
|---|
| Particulars | Rs (crore) | Rs (crore) | No. of contracts | Rs (crore) | Rs (crore) |
|---|
| Index Futures | 1918.39 | 1773.20 | 408253 | 9813.61 | 145.19 |
| Index Options | 18501.02 | 17391.73 | 1449695 | 36044.93 | 1109.29 |
| Stock Futures | 1507.04 | 1698.36 | 864515 | 20574.48 | -191.32 |
| Stock Options | 738.97 | 708.88 | 40932 | 1006.08 | 30.09 |
| Total | 22665.42 | 21572.17 | 2763395 | 67439.11 | 1093.25 |