Opening Bias
Indian equity markets may extend losses and open negative. The SGX Nifty is trading down by 28 points at 4938 indicating a gap up opening to markets today.
| Benchmark Indices |
|---|
| Index | Closing | % Change |
|---|
| SENSEX | 16420.05 | -0.36 |
| NIFTY | 4965.70 | -0.18 |
| Dow Jones | 12855.4 | 0.16 |
| S&P 500 | 1357.99 | 0.25 |
| NASDAQ | 2933.64 | -0.04 |
| Bovespa | 59702.05 | -0.14 |
| FTSE | 5543.95 | 0.25 |
| DAX | 6518.00 | 0.66 |
| CAC | 3130.17 | 0.37 |
| LIVE |
| Hang Seng | 20041.00 | -0.92 |
| Nikkei | 9020.78 | 0.12 |
| Shanghai | 2406.82 | -0.14 |
Overnight, the US markets snapped its losing streak and turned marginally positive helped by a dip in jobless claims and signs of stabilization in Europe. But a steep drop in Cisco Systems Inc. sent the Nasdaq Composite Index lower. Elsewhere in Europe, stock markets rose, erasing an earlier decline, as companies from Deutsche Telekom AG (DTE) to Repsol YPF SA (REP) posted better-than-estimated quarterly profit. The Asian markets in early trade hours have opened on a mixed note after JPMorgan Chase & Co. said it had a $2 billion trading loss as positions in credit securities proved riskier than expected, overshadowing signs U.S. employment is improving.
| Currency Rates |
|---|
| Particulars | Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP |
|---|
| RBI Rate | 53.3375 | 69.0680 | 86.1081 | 66.9300 |
| Future | 53.6100 | 69.3000 | 86.6050 | 67.3100 |
Back home, the Sensex and the Nifty fell for a third straight session yesterday, towards their lowest close since January 16, as central bank measures to bolster the rupee had a muted impact and as fears grew about sustained foreign selling. The RBI yesterday, in an effort to cap the weakening of the Indian Rupee, ordered exporters to convert half of their foreign exchange earnings kept in bank accounts. But the relief lasted only a few hours before the rupee resumed its decline since the order could bring in just about $3 billion, enough to cover five days of deficit.
In major developments, the Finance Minister Pranab Mukherjee has deferred the consideration of the insurance bill as he seemed unsatisfied by the fact that the bill had retained the 26 per cent cap on FDI in insurance sectors, when the govt. had tried its best to push for an increase in cap to 49 per cent. Finance Ministry sources later reviled that there was a need for more consultation on the bill, due to which it has been deferred. An effort will be made to evolve consensus on a higher FDI cap soon.
| Key Global Indicators |
|---|
| Particulars | Gold (Rs/10gm) | Crude ($/bbl) |
|---|
| Spot | 28725 | 111.84 |
| % change | - | -0.20 |
| Future | 28433 | 95.87 |
| % change | -0.85 | -1.25 |
In conclusion, for today we see markets to remain volatile with a negative bias. While the RBI has been doing all that it can to restrict the fall in the value of rupee against the dollar, the real deal and power lies in the hand of our government. A slew of key reforms followed by the decontrol of diesel prices which would help cut fiscal and current account deficits and finally improve the macroeconomic balance should help spur up the investment opportunities for FII investment back in India. We advise investors to remain cautious while making investment decisions.
Stocks In Action
Media conglomerate DB Corp's Rs 176 crore share sale offer has been oversubscribed by 103%, stock exchanges data shows. The offer for sale of 90 lakh shares of DB Corp, which publishes leading Hindi daily 'Dainik Bhaskar', received bids for 93.09 lakh shares, the data showed.
Karnataka Industries Minister Murugesh Nirani said the government by month-end would hand over land to Infosys and Wipro to set up their development centres in the city. "By month-end, we will clear all hurdles in handing over the land to the concerned IT companies," he said on the sidelines of Southern Regional Council Meeting of Confederation of Indian Industry here.
Ace investor Rakesh Jhunjhunwala has bought 2.24% stake in global career education and training firm Aptech for nearly Rs 8 crore through an open market transaction. According to the bulk data available with stock exchanges, Jhunjhunwala, one of the promoters of Aptech, purchased 10.95 lakh shares (amounting 2.24% stake) of the company for Rs 70.44 apiece, valuing the deal to Rs 7.71 crore.
Suzlon Group-subsidiary REpower Systems has bagged an order to supply 19 wind turbines, each having a power of 2.05 MW, from RWE Innogy for its Nowy Staw wind farm project in Poland. The wind farm project, spread across 15 sq km and scheduled to be commissioned in early 2013, has a potential to generate enough power to meet the needs of more than 50,000 homes every year, Suzlon said in a statement.
Ruia-group Company Essar Energy has signed a power purchase agreement with Noida Power Company for selling 240-MW electricity from its 600-MW coal-fired plant at Jharkhand. Essar Energy today announced that it has signed a power purchase agreement (PPA) with Noida Power Company Ltd for 240 MW of contracted capacity from its 600-MW Tori II thermal power station which is under construction in Jharkhand, a company statement said.
The government has directed coal companies to supply fuel to power plants that have been commissioned this year through the MoU route till issues related to fuel supply pacts are resolved. The latest directive would benefit as much as 8,800 MW of electricity generation capacity that has come up in the first three months of 2012, sources said.
Drug major Cipla has reported 36.32% increase in net profit to Rs 291.74 crore for the fourth quarter ended March 31, 2012. The company had posted a net profit of Rs 214 crore for the quarter ended March 31,2011, Cipla said in a filing to BSE.
United Breweries (Holdings) has reported a 83.69% decline in net profit at Rs 2.10 crore for the fourth quarter ended March 31. The company had posted a net profit of Rs 12.88 crore during the corresponding period of the previous financial year, the company said in a filing to the BSE.
With losses on sale of petrol climbing to over Rs 7 a litre, state-owned oil firms have asked the government to either provide subsidy on the fuel or reduce excise duty. "The public sector oil marketing companies have not revised the price of petrol since December 1, 2011, in spite of sharp increase in international prices of petroleum products," Minister of State for Petroleum and Natural Gas RPN Singh told the Lok Sabha here today.
Swiss drugmaker Novartis said it would investigate alleged drug approval irregularities in India after a parliamentary report found the country's regulator colluded with pharmaceutical firms to speed up approval procedures. "We will investigate the allegations presented in the government's report," Novartis said in a statement
Jubilant FoodWorks Ltd (JFL) has posted 51.81% increase in net profit for the quarter ended March 31, 2012, at Rs 29.33 crore. For the quarter ended March 31, 2011, the company's net profit was Rs 19.32 crore. JFL, a master franchisee for Domino's pizza and Dunkin' Donuts brands, saw 46.13% increase in total sales at Rs 282.95 crore during the quarter against Rs 193.62 crore in the fourth quarter of last fiscal.
German pharma major Bayer has charged that Indian generic drugmaker Cipla had breached its patent rights by slashing the price of a generic version of its patent-protected cancer drug Nexavar last week.
Car sales in India rose an annual 3.4% in April, according to data from an industry body, a sixth consecutive monthly increase but lower than in recent months after the country hiked excise duty on the vehicles. Sales rose 20% in March, the biggest monthly rise in a year, thanks mainly to a rush from customers to buy cars before price hikes from manufacturers in response to the excise duty increase came into effect.
Corporate Action
| Stocks Paying Dividend (Ex-Date) |
|---|
| Scrip Name | Action | Rs |
|---|
| Bosch | Dividend | 50.00 |
| Results Today |
|---|
| Scrip Name | Action | Scrip Name | Action | Scrip Name | Action |
|---|
| ABC Bearings-$ | Mar-12 | Greaves Cotton | Mar-12 | Milton Plast | Mar-12 |
| Aditya Birla Chem | Mar-12 | Gujarat Recl | Mar-12 | Moser Baer | Mar-12 |
| Astrazeneca Phar | Mar-12 | Gupta Carpets | Mar-12 | MTNL | Mar-12 |
| Avanti Feeds-$ | Mar-12 | HATHWAY CAB | Mar-12 | Nilkamal | Mar-12 |
| Balaji Tele | Mar-12 | Hindustan Tin-$ | Mar-12 | Oracle Fin | Mar-12 |
| DCM Shriram Cons | Mar-12 | ICRA | Mar-12 | Pentamedia Grap | Mar-12 |
| Dr Reddys Lab | Mar-12 | Indian Bank | Mar-12 | Shakti Pumps-$ | Mar-12 |
| Facor Alloys | Mar-12 | Kanoria Chem | Mar-12 | Tanla Solutions | Mar-12 |
| Federal Bank | Mar-12 | KCP Sugar | Mar-12 | TCI Finance | Mar-12 |
| Ferro Alloys | Mar-12 | Kwality Dairy | Mar-12 | Thermax | Mar-12 |
| Goodyear India | Mar-12 | Liberty Shoes | Mar-12 | Torrent Power | Mar-12 |
| Graphite India | Mar-12 | MIC Electronics | Mar-12 | | |
| BSE Institutional Turnover |
|---|
| | FII | DII |
|---|
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
|---|
| 10-May-12 | 1,916.25 | 1,598.83 | 317.42 | 1,046.05 | 1,189.58 | -143.53 |
| 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 |
| May , 12 | 16,209.48 | 16,559.06 | -349.58 | 7,622.25 | 7,628.03 | -5.78 |
| 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 | 1671.56 | 1717.10 | 423056 | 10106.38 | -45.54 |
| Index Options | 17653.59 | 18024.60 | 1495631 | 37120.14 | -371.00 |
| Stock Futures | 1313.32 | 1152.79 | 874317 | 20676.63 | 160.52 |
| Stock Options | 807.10 | 777.94 | 42313 | 1027.90 | 29.16 |
| Total | 21445.58 | 21672.43 | 2835317 | 68931.05 | -226.86 |