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Tuesday, August 31, 2010
Sensex pares losses at close; RCom, JP Asso drag
Indian equities dropped on Tuesday erasing earlier gains. The Sensex ended with mere loss of 61 points at 17,971.12 due to weakness persisted in global markets. On sectoral front, consumer durable, oil & gas, realty and metal stocks also dragged the indices lower. Both Sensex and Nifty traded below 1-month low.
Daily Market Review - Aug 31 2010
Thanks to a sharp rebound in last half an hour, benchmark indices recovered nearly a percent from the lowest point of the day to end with modest losses. Sensex closed at 17944, down 88 points while Nifty finished at 5402, down 13 points. BSE Mid-cap and Small-cap indices lost 0.6% and 0.9% respectively. GDP for the April-June quarter showed a growth of 8.8% as against 8.6% in the previous quarter. European markets were trading down about a percent while US stock indices futures were lower by nearly a third of a percent ahead of data on Chicago Purchasing Managers Index and Consumer confidence.
Robust GDP data fails to lift Sensex
Major headlines
Q1FY11 gross domestic product comes in at 8.8%
Honda may sell its entire stake in Hero Honda Motors; the stock closes 0.01% lower
Tata Communications, Axiata Group sign IP transit deal; the stock ends 0.14% higher
Nifty September 2010 futures below 5,400
Turnover surges
Nifty September 2010 futures were at 5,399, at a discount of 3.40 points compared to spot closing of 5,402.40. Turnover in NSE's futures & options (F&O) segment surged to Rs 106140.93 crore from Rs 87367.15 crore on Monday, 30 August 2010.
Asian stocks succumb to substantial sell off
Markets slump as investors continue to be worried about global recovery
Asian stocks succumbed to substantial sell off today as the weak overnight cues from the US markets and continued worries about the global economic recovery hurt the sentiments. The US Personal spending went up slightly than expected in the month of July, according to the latest updates from the Commerce Department yesterday. The personal spending increased by 0.4% in July after coming in unchanged in June. However, the personal income rose by just 0.2% in July after coming in unchanged in the previous month. US stayed mostly firm in the Asian trading; keeping a tab on the overall movements while weakness in commodities hurt the resource stocks.
Market gives thumbs down to RIL's acquisition of EIH stake
The key benchmark indices recovered in the last one hour of trade as robust first quarter June 2010 GDP data triggered bargain hunting after a steep intraday slide in share prices. A government report at 11:00 IST showed the Indian economy expanded at the fastest pace in 2-1/2 years in Q1 June 2010. The market had tumbled in early trade owing to weakness in Asian and European markets.
BSE Bulk Deals to Watch - Aug 31 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
31/8/2010 530901 ACIL Cot Inds JAYSHREE SHANKAR BHOSLE B 62168 35.37
31/8/2010 531678 Anand Credit TUSHAR CHANDRAKANTBHAI JOSHI B 100000 52.88
31/8/2010 531678 Anand Credit VIPUL VIRENDRAKUMAR PATEL B 99170 53.52
NSE Bulk Deals to Watch - Aug 31 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
31-AUG-2010,AQUA,Aqua Logistics Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,156315,632.18,-
31-AUG-2010,AXIS-IT&T,Axis-IT&T Limited,BP FINTRADE PRIVATE LIMITED,BUY,107926,84.16,-
Weak Asian stocks to weigh on sentiment
The market may edge lower, tracking weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicate that the Nifty could fall 36 points at the opening bell. On the macro front, the government will today, 31 August 2010, unveil Q1 June 2010 GDP data. The economy expanded an annual 8.6% in Q4 March 2010.
Markets may witness a weak start
Headlines for the day:
Tax code only from 2012
NTPC moves to secure fuel supply for power plants
Infosys plans extreme offshore model to tide over visa crisis
Time to ponder!
"It is better to read a little and ponder a lot than to read a lot and ponder a little" – DP Burkitt.
There is a lot to ponder on the market. The surprising RIL-EIH deal, DTC Bill and Q1 GDP data are among the top stories. And then you have a renewed fall on Wall Street. Asian markets are weak, led by Japan and Taiwan. But China, Singapore and Hong Kong markets have not fallen as much. That augers well for India, and we could see some bounce after a lower opening.
Daily News Roundup - Aug 31 2010
Reliance Industries has acquired 14.12% stake in EIH for Rs10.2bn. (ET)
NTPC has signed a MoU with Bangladesh Power Development Board for setting up two 1,320 MW each power projects at Chittagong and Khulna in Bangladesh. (ET)
Jubilant Organosys has signed a long-term contract worth US$33mn with a US life sciences company for its custom research and manufacturing services (CRAMS) business. (ET)
Reliance Communications has set up an integrated third generation innovation laboratory to develop applications for mobile services consumers. (ET)
Pharmac, a New Zealand Government drug funder, will fully fund a brand of Quetiapine drug made by Dr Reddy's Laboratories. (ET)
Videocon is in talks with foreign entities for a 26% stake-sale in its telecom subsidiary--Videocon Telecommunications. (ET)
Union Bank of India and PNB have increased their term deposit rates by up to 1% across various maturities. (ET)
Infosys is mulling an ‘extreme offshoring’ model to help reduce its dependence on H1 and L1 visas. (BS)
NTPC may offer upto 49% equity stake to Qatar Petroleum in its gas-based project at Kerala. (ET)
M&M terminates contract with US distributor for pick-ups, three days after M&M received certification from the US Environmental Protection Agency (EPA) allowing it to sell pick-up trucks in that country. (BS)
M&M plans to separate the agri business of its subsidiary Mahindra Shubhlabh Services and merge it into itself. (ET)
GMR Infrastructure plans to unlock the value of its airport land holdings by monetising them. (ET)
ONGC said that Cairn Energy Plc required its consent besides government approvals to "consummate" the proposed sale of Cairn Energy’s stake in Cairn India to Vedanta Resources. (BS)
Gitanjali Gems plans to acquire a leading Italian jewellery house by the end of next month. (BS)
NTPC is considering a ‘strategic’ tie-up with Qatar Petroleum and picking up stakes in two coal mines in Indonesia to secure fuel supply for its power plants. (BS)
Glenmark Pharmaceuticals plans to file an application to undertake Phase I trials on its prospective pain molecule GRC 17536, in January 2011. (BL)
NALCO has started the process to extend its metals business, by looking for prime buyout targets in copper, uranium and coal in Africa and Afghanistan. (ET)
NMDC and Coal India are forming a joint venture with West Bengal Mineral Development and Trading Company to acquire one of the largest coal blocks in the country having reserves of around 19bn tons. (ET)
Videocon is negotiating with foreign companies for sale of a 26% stake in its subsidiary, Videocon Telecommunications. (BS)
Dr Reddy's Laboratories Ltd has received permission to sell Quetiapine in New Zealand from Pharmac, the drug-funding agency of New Zealand Government. (BL)
Gujarat State Petroleum Corporation Limited (GSPCL) has imported its fourth LNG cargo under the short term supply contract with Spanish company Gas Natural. (BS)
With Cairn Energy Plc voluntarily offering to meet government conditions, the Oil Ministry may find it difficult to nix its deal to sell majority stake in Cairn India to Vedanta Resources. (ET)
HUL is repositioning its staples brand Annapurna on the health platform by taking the fortification route. (BS)
The Power ministry has favoured allocation of the bulk of new natural gas output from fields like those of Reliance Industries to Reliance Power's Samalkot expansion unit in Andhra Pradesh. (ET)
The government plans to roll out the new Direct Tax Code (DTC) from April 1, 2012. (ET)
The Direct Taxes Code Bill has proposed to retain the current tax system of exemptions for SEZ notified till 2012 but imposed a 20% minimum alternate tax. (ET)
The proposed increase in exemption limits in the Direct Taxes Code (DTC) Bill will benefit an overwhelming 96% of taxpayers, who earn less than Rs0.5mn p.a. (ET)
The telecom department has turned down the armed forces demand for a permanent waiver of spectrum charges on all airwaves used by the three services, Army, Air Force and the Navy. (ET)
India will soon implement the free trade agreement (FTA) in goods with two more Asean countries -- Indonesia, Cambodia. (ET)
Sensex ekes out slim gains...Metals shine, IT lags
The Indian market ended marginally higher on Monday after a strong start, with the main indices erasing most of the early gains amid lingering concerns about the state of the global economic recovery. The broader market also closed flat.
Gujarat Pipavav Port prices IPO at Rs 46 a piece
The IPO price band was Rs 42-48 per share
Gujarat Pipavav Port (GPPL) has priced its initial public offer (IPO) at Rs 46 per share. The price band for the IPO was Rs 42-48 per share. The IPO was subscribed almost 20 times. The issue closed on 26 August 2010. The IPO got bids for 220.21 crore shares, compared with 11.04 crore shares on offer.
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