Markets May Open In Green

DSIJ Intelligence / 06 Jun 2012

The Indian markets may open positive in line with the global cues. The SGX Nifty is trading up by 17 points at 4,867, indicating a gap up opening to the markets today.
The Indian markets may open positive in line with the global cues. The SGX Nifty is trading up by 17 points at 4,867, indicating a gap up opening to the markets today.

Benchmark Indices
IndexClosing% Change
SENSEX 16020.64 0.2
NIFTY 4863.3 0.31
Dow Jones 12128 0.22
S&P 500 1286 0.57
NASDAQ 2778 0.66
Bovespa 52481.44 -1.75
FTSE 5260 0
DAX 5969 -0.15
CAC 2986 1.07
..    
Hang Seng 18352.81 0.51
Nikkei 8442.64 0.72
Shanghai 2311.81 -0.38

The Indian markets yesterday closed marginally in the green zone. Yesterday, post-market, there was a major announcement for the exporters as the sops exceeded their expectations. According to media reports, the government has unveiled a seven-point strategy, including the extension of import tax waiver and interest subsidy, to boost Indian merchandise exports that have remained subdued on account of the weak demand from the US and European economies. This could be considered as one of the major moves after the government’s attempt to narrow down the current account deficit which is getting worse. Further, the move could help the rupee to appreciate, which recently had created a new low of Rs 56.52 per dollar. Also, the expectation of a normal monsoon season will further help the economy. 

Overnight, the US markets closed on a positive note after the service industries, which contribute approximately 66 per cent of the GDP, sustained their pace of growth in May which stood at 53.7 as against 53.5 in April. The European markets yesterday closed with a mixed bag with CAC closing comfortably in the higher zone while DAX closed marginally in the green zone. One should note that UK’s market, FTSE, was closed yesterday. Further, investors should watch out for the European Central Bank (ECB) meet scheduled for today. There are expectations that the ECB may cut the interest rate which would fuel growth in the economy. 

On the other hand, the Asian markets have opened with Hang Seng and Nikkei trading higher in the green zone while Shanghai is trading in the red zone. This is after the media reported that the finance ministers and the central banks’ governors of the world’s leading economies have agreed to coordinate their responses to the situations in Europe and the US.

Key Global Indicators
 Gold (Rs/10gm)Crude ($/bbl)
Spot 29900 99.06
% change - 0.22
Future 30011 84.56
% change 0.31 0.32

Currency Rates
 Rs/$Rs/EuroRs/GBPRs100/JYP
RBI Rate 55.5615 69.5025 85.5175 70.82
Future 55.9 69.405 85.79 71.34

The depreciating rupee continues to be a major headwind for our economy. The rupee is currently trading at 55.5615 against a dollar. Brent crude has come down from the level of USD 125 in the past couple of months to USD 99 per barrel which is good for our economy. However, the depreciating rupee has offset some of this benefit. 

In conclusion, we expect the markets to remain volatile as investors are jittery in this uncertain environment. We therefore advise investors to play with caution.

Stocks In Action

As per media reports, drug maker Lupin has received approval from the US health regulator to market its generic Suprax capsules, used for treating bacterial infections, in the American market. The company’s subsidiary, Lupin Pharmaceuticals Inc, has received approval from the United States Food and Drug Administration (USFDA) for Suprax (Cefixime) capsules in the strength of 400 mg, Lupin said in a statement. The news will have a positive impact on the scrip as the approval will expand Lupin’s range of Suprax dosage forms. The product is currently available as 100 mg/5ml, 200 mg/5ml suspensions and 400 mg tablets. 

As per a report in Business Standard, the Suzlon Group, manufacturer of wind turbines, has announced the launch of its newest wind turbine, the S111, which is a 2.1 megawatt (MW) machine designed for low wind speed sites. With the industry increasingly looking to lower wind speed sites, the S111 represents a major step forward in the company’s strategy to create products that deliver ever-increasing output from lower wind speeds. According to company officials, the S111 will be a market-defining product. There will be some positive momentum for the stock as the company will benefit from the new launch of this wind turbine.

As per media reports, the Australian government has raised objections to environmental clearance given by a provincial government to GVK Group’s USD 10 billion alpha coal mine project in Galilee Basin, Queensland. The objections raised by the federal government can delay the progress of the project. The scrip will see some pressure today.

Yesterday, Andhra Bank, post-market, made an announcement to the exchange about their consolidated financial results of 2011-12. Its total income for FY12 increased by 33 per cent to Rs 1,26,135 million while its net profit increased by 6 per cent to Rs 13,311 million. On the back of its numbers, one may see volatility in the share price of the bank in today’s trading session.   

According to Business Standard, Britannia Industries is planning for global expansion to shore up its growth story. The company’s bakery and dairy brands are available in approximately 30 countries and it will target the Indian diaspora in the US, Canada and the UK. On the back of this news one may see volatility in Britannia’s share price movement.   

Unhappy with the minimum penalty norms in Coal India’s fuel supply agreements (FSA), the power ministry has approached the coal ministry to change the disputed clauses. There are no disincentives for three years and after three years the penalty is only limited to 0.01 per cent. This is what the power ministry wants to be changed. The ministry is in talks with the coal ministry over the penalty clause in the fuel supply agreements and hopes to sign pacts with amended conditions soon. Coal India had suggested a 0.01 per cent penalty on not delivering the fuel in time, but the penalty would only be applicable after three years of signing the pact. NTPC and many other power companies had refused to ink fuel supply pacts with Coal India, disagreeing with the introduction of some of the clauses in the FSA. If the proposed clause is accepted then we may see some positive impact on the scrip of power companies today. One of the clauses is that Coal India would be incentivized for supplying above the 90 per cent level. The percentage of incentive would increase with increase in supply and it would be penalised for not meeting the minimum supply target of 80 per cent, while the percentage of penalty would increase with a decline in supply.

BSE Institutional Turnover
 FIIDII
Trade DateBuySalesNetBuySalesNet
5-Jun-12 1791.48 2011.86 -220.38 865.54 660.04 205.5
4-Jun-12 1492.85 2129.99 -637.14 1102.98 656.75 446.23
1-Jun-12 1791.48 2011.86 -220.37 865.54 660.04 205.49
June, 2012 5,076 6,154 -1,078 2,834 1,977 857

FII DERIVATIVES STATISTICS FOR 5-June-2012
 BUYSELLOI (End of the day) Net Position
 Rs (crore)Rs (crore)No. of contractsRs (crore)Rs (crore)
INDEX FUTURES 1271.59 986.07 323980 7666.62 285.52
INDEX OPTIONS 11503.67 11148.71 1524617 37061.72 354.96
STOCK FUTURES 1169.70 890.58 880967 20372.52 279.12
STOCK OPTIONS 621.46 604.29 29591 712.34 17.17
Total 14566.42 13629.65 2759155.00 65813.20 936.77

If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.