Indian stock market morning report by Keynote Capitals (October 7, 2008, Tuesday, 6.00 a.m. GMT)
Economic and Corporate Developments
- The rupee weakened further, dipping below the 48 per USD for the first time since January 2003. It was at 48.01/48.02 per USD. Oil prices too dipped to below $90, an 8-month low.
- The RBI has cut CRR by 50 basis points to 8.5% to ease liquidity. The move will be effective from October 11 and will inject Rs20000Cr into the system.
- In a move that can bring some relief to the harried markets, Sebi has removed restrictions on issuing participatory notes (P-notes) where the underlying asset is a derivative. Sebi also scrapped a rule as per which P-notes could only account for up to 40% of the assets held by a foreign fund.
- The economic slowdown is getting reflected in tax collections. Net direct tax collections grew 32.5% in the first six months of FY09, slower than the 40% growth in the same period last year, due to moderation in advance taxes paid by corporations and individuals.
- The 13% fall in SAP’s shares in the US can be a cause of concern for Indian IT companies like Infosys, Wipro and Satyam. SAP AG, the German software giant warned that its sales will likely suffer due to the current economic malaise.
- Crisil has lowered the outlook for three public sector banks, viz., Canara Bank, Corporation Bank and IDBI Bank, from stable to negative, since their resource profile has weakened further. This has been attributed to a substantial rise in borrowing costs and a decline in current and savings account (CASA) deposits.
- Infomedia India will consider merging I-Ven Interactive Ltd. with itself and spin off the printing division.
- Thermax has won a Rs450Cr order for setting up a 60MW captive power plant for a green field integrated steel complex in Andhra Pradesh, on a turnkey basis.
- Era Infra Engineering has been awarded a number of contracts worth Rs785Cr during the Q2FY09.
US markets overnight
The Dow Jones Industrial Average ended down 3.6%, closing below the 10000 mark for the first time in 4 years on fears that the credit crisis is spreading its tentacles across global markets. The Fed tried to ease the pain by making 28-day and 84-day cash loans available to banks. That makes total of $900bn in credit potentially outstanding over year end. But still US markets didn't find much respite from this. The fears of financial crisis spread to France which proposed an emergency G8 meeting which increased speculation that global central banks may make a coordinated inter-meeting rate cut. There were concerns that more bailouts of European financial institutions are needed after German government stepped in to prevent collapse of property lender Hypo Real Estate. Global growth concerns lead to a decline in crude oil price by 5% to $89.15/ barrel.
Views on markets today
Asian markets fell sharply this morning, after deep losses in the US markets. The Strengthened yen (JPY) pushed the Nikkei dropped below the 10,000 level for the first time since December 2003. The RBI and Sebi have announced few steps to reduce the liquidity crunch in India. While RBI reduced CRR by 50bps, Sebi eased norms on Participatory Notes (PNs). While we may expect a relief rally on account of these measures, we believe profit taking may happen at higher levels, leading to the indices ending lower than yesterday’s levels.
Technical view
Yesterday was yet another bear dominated day. After opening lower with a gap, the Sensex could not recover for the entire day and closed with a loss of 5.8%. Technical indicators, particularly medium-term indicators such as MACD indicates weakness may continue for the medium term. However, oversold short-term indicators viz., Stochastics and Williams %R indicate short recovery for next 2-3 days. We advise investors to avoid long positions and partially sell shares on every upside. Resistance at 12560 is very crucial while support near 11000-11300 is important.
|
|
New!
Stock Market Forums (US, Europe, Asia)
Free Membership
|
|
|
| Latest Indian Stock Market Reports |
Indian stock market daily morning report (September 02, 2010, Thursday)
Indian markets ended positive to a one month high yesterday on fund buying across the sector after firm global markets, strong auto sales, rising exports and expansion in manufacturing sector. Positive European markets also aggravated buying in the markets. TCS gained ~1.5% as its UK subsidiary Diligenta bagged contracts worth 250mn pounds. All sectoral indices closed positive with metal, real estate, IT and oil & gas led the market to close positive. Metals stocks rallied as a rebound in manufacturing in China propelled base metals.
Indian stock market and companies daily report (September 02, 2010, Thursday)
The market extended gains in morning trade and turned range bound in mid-morning trade. Strong global cues pushed the market sharply higher in the second half of trade. The market spurted to the day's high in mid-afternoon trade and extended gains in late trade as European stocks and US index futures rose. Strong auto sales, expansion in the manufacturing sector in August 2010 and resumption of buying by foreign funds underpinned sentiments. All the sectoral indices on the BSE were in green and the market breadth was strong. The Sensex and Nifty closed up by 1.3% each. BSE mid-cap and the small-cap indices closed up by 1.7% and 1.8%, respectively. Among the front liners, RCOM, Hindalco Industries, Sterlite Industries, Bharti Airtel and Tata Steel gained 3–5%, while Hero Honda, HDFC and ONGC lost 0–2%. Among mid caps, STC, FDC, United Breweries, Dredging Corp. and State Bank of Mysore gained 10–14%, while Allcargo Global, Shree Global Tradefin, Jain Irrigation, Fresenius Kabi Oncology and GSK Consumer lost 2–4%.
Indian stock market daily closing report (September 02, 2010)
The markets traded within a tight range after the positive momentum witnessed for two days and ended with modest gains. All the major sectoral indices ended on a very flat note. Sugar counters witnessed a significant spike on decontrol reports. The Sensex closed at 18,238 up 34 points and the Nifty was at 5,486 up 14 points after making an intra-day high of 5,513. The Mid cap and Small cap indices were up by 0.78% and 1.11% respectively. The breadth of the market was positive and the total turnover recorded at Rs.1,02,680 Cr. The Sept future ended with 3 points discount
| |
|
|
| Indian Stocks Recommendations |
Godrej Properties IPO review and analysis by Angel Broking, 9 December 2009
Godrej Properties Limited (GPL) intends to develop its projects through joint development agreements with land owners. Under this asset-light model, GPL will enter into revenue, profit or area-sharing agreements with land owners, instead of an outright purchase of the land. This model avoids direct land dealings for GPL and the locking-up of extensive capital in land. Around 80% of GPL's existing land bank will be executed through joint developments with partners. The Godrej brand name has been associated with quality and strong corporate governance. Both of its existing listed entities, Godrej Consumer Products and Godrej Industries have given CAGR Returns of 48% and 77%, respectively, to investors since 2001. We believe that GPL could leverage its parentage brand (with respect to access to the land at Vikhroli and a strong customer preference towards it), assuring a timely delivery of execution. More than 50% of GPL's existing land bank is exposed towards township projects and in one location (Ahmedabad), which will be executed over the next ten years. Any delay in this execution or a fall in property prices in Ahmedabad will impact our NAV estimates, as 50% of our NAV is derived from this project.
JSW Energy Ltd IPO review and analysis by Nirmal Bang, 8 December 2009
JSW Energy Ltd. (JSWEL) is a power project development company, which is developing, and will operate and maintain, power projects in India. The company has two thermal power projects under operation, with a combined installed capacity of 860 MW. JSWEL is a part of the JSW Group, a leading business group in India. JSW Group has a presence in high growth sector like Steel, Energy, Aluminium, Cement, Infrastructure and Logistics. Post IPO holding of Promoter and Promoter Group would be 78.12%
JSW Energy IPO review and analysis by Angel Broking, 7 December 2009
JSW Energy (JSWEL) currently has operational capacity of 995MW and is in the process of executing projects with capacity of 2,655MW. In addition, the company has 7,740MW power generation projects at an early stage of development. A major portion (2,145MW) of JSWEL’s upcoming capacities is expected to be operational by FY2011E thereby providing near-term visibility. Out of the plants under construction, the company expects to commission 570MW by end FY2010E, while another 1,575MW is expected to get operational in FY2011E. Thus, a robust portfolio and near-term Revenue visibility is a major positive for the company.
| | Indian News |
Reliance Broadcast Network To Raise Over Rs. 400 Cr., 2 September 2010
Tata Power-Origin Energy-Supraco Consortium Wins Geothermal Bid In Indonesia, 2 September 2010
Cinemax Launches Three-screen Multiplex, 2 September 2010
Koutons Retail To Consider Fund Raising, 2 September 2010
Zylog Systems To Raise Up To Rs.250 Cr, 2 September 2010
|
|
