Morning Notes
12.06.2012
R. Wadiwala
Securities Pvt Ltd Commodities Pvt Ltd
Member Broker: NSE, BSE, MCX & NSEL || DP: CDSL || PMS || Mutual Fund
Yen Gains Versus Peers Before Italy Debt Sale, Greek Vote The yen climbed against all of its major counterparts amid concern the bailout of Spains banks will move Italy to the forefront of the debt crisis, spurring demand for the Japanese currency as a haven. The 17-nation euro remained lower versus the dollar following a three-day slide before Italy auctions debt this week and Greeks vote in a general election on June 17. The euro climbed early yesterday after Spain asked European governments for as much as 100 billion euros ($125 billion) to save its banking system, making it the fourth member of the currency bloc to seek a rescue. Asian Stocks Decline on Doubt Over Spains Bailout, Plan Asian stocks fell as surging Spanish bond yields stoked concern that a bailout for the nations banks wont tame the European debt crisis. Canon Inc. (7751), a camera maker that gets about 31 percent of sales from Europe, slipped 2 percent in Tokyo. Mitsubishi Chemical Holdings Corp. fell 2.9 percent after saying it will halt production at its ethylene and benzene plant as part of structural reforms. BHP Billiton Ltd., the worlds biggest mining company and Australias largest oil producer, lost 1.1 percent in Sydney as crude and copper futures declined. Aussie, Kiwi Dollars Fall Versus Yen on Euro Debt-Crisis Concern The Australian and New Zealand dollars fell against the yen for a second day as share gains evaporated following a bailout of Spains banks amid concern Italy will become the next focus of Europes debt crisis. Australias bonds rose as Asian stocks extended a global rout before Italy sells debt this week and Greeks vote in a general election on June 17. National Australia Bank Ltd. (NAB) releases its business confidence survey for May today. Losses in New Zealands currency were limited after a private index showed home prices climbed last month. Markets in New Zealand and Australia are priced for very ugly economic conditions in Europe, said Gavin Stacey, the Sydney-based chief interestrate strategist at Barclays Capital.
KEY INDICES
Indian Markets
Index
S&P CNX NIFTY CNX NIFTY JUNIOR CNX 100 S&P CNX DEFTY S&P CNX 500 CNX MIDCAP NIFTY MIDCAP 50 SENSEX
Close
5054.10 9668.30 4939.35 3142.30 3998.05 7012.45 2028.85 16668.01
Pt. Chg.
-14.25 -64.20 -16.75 -20.90 -12.90 -21.40 -4.20 -50.86
Change %
-0.28 -0.66 -0.34 -0.66 -0.32 -0.30 -0.21 -0.30
Global Markets
Change (%) -1.26 -1.70 -1.14 -0.05 0.17 -0.29 -1.45 -1.08 -0.84
Index S&P 500 NASDAQ DOW JONES FTSE DAX CAC 40 NIKKEI HANG SENG STRAITS TIMES
Close 1308.93 2809.73 12411.23 5432.37 6141.05 3042.76 8498.79 18748.08 2764.56
Global data recorded/updated last as on 12, June 7.30 a.m. IST
R. Wadiwala
NIFTY TOP GAINERS
Indian Markets Change (%) 2.36 1.86 1.60 1.53 Indian Markets
NIFTY TOP LOSERS
Change (%) -2.64 -2.40 -2.39 -2.00
Company BAJAJ AUTO TATA POWER HIND LEVER COAL INDIA
Close 1,563.45 96.05 436.15 332.70
Company H C L TECH BHEL CIPLA LARSEN & TOU
Close 482.50 215.90 301.80 1,283.25
MARKET SUMMARY
Reversing earlier gains, the key domestic benchmarks ended lower, with the Sensex snapping a five-day winning streak , while the rupee fell after rating agency Standard & Poors warned that India may become the first BRIC country to be stripped off its investment-grade credit rating amid slowing growth and a policy logjam that has led to stagnation in investment. The domestic benchmarks spent the majority of the day in the positive terrain, cheering the EU decision to lend 100 billion euro to Spain to recapitalize its banks as concerns over Europes debt turmoil eased. However, the Sensex slid into the negative terrain as comments made by S&P sent shockwaves across domestic indices and led to a sharp sell-off in stocks. The BSE SENSEX closed at 16,668.01, down by 50.86 points or by 0.30 per cent and the NSE Nifty ended at 5,054.1, down by 14.25 points or by 0.28 per cent. The BSE Sensex touched intraday high of 16,893.81 and intraday low of 16,627.48 The NSE Nifty touched intraday high of 5,124.45 and intraday low of 5,040.7. Meanwhile, the BSE MIDCAP closed at 5,976.48, down by 11.73 points or by 0.20 per cent, while the BSE SMLCAP ended at 6,339.5 up by 13.36 points or by 0.21 per cent. On the Sectoral front, Capital Goods and Healthcare shed 1.64 per cent and 1.34 per cent, respectively. Out of the 30 Sensex stocks, there were 12 advances and 18 declines. The Market breadth, indicating the health strength of the market, was strong. On BSE out of total shares traded 3550, shares advanced were 1500 while 1284 shares declined and 766 were unchanged. The top losers of the BSE Sensex pack were Cipla Ltd. (Rs. 302.25,-2.25%), Bharat Heavy Electricals Ltd. (Rs. 216.35,2.21%), Larsen & Toubro Ltd. (Rs. 1283.00,-1.99%), Jindal Steel & Power Ltd. (Rs. 431.60,-1.93%), Tata Motors Ltd. (Rs. 235.55,-1.40%), among others. Among the Asian benchmarks, Shanghai Composite ended up 1.07 per cent, Hang Seng advanced 2.44 per cent and Nikkei 225 closed up 1.96 per cent.
R. Wadiwala
NEWS UPDATES
MACRO Dismissing concerns that India's growth rate may drop below 6.5%, Finance Minister Pranab Mukherjee said 201213 would be the turnaround year for the economy. Addressing a conference of top officials of the Income Tax Department, he said steps are being taken to put India back on path of high economic growth. We are taking all necessary steps to ensure that we come back to the path of the targeted GDP growth. Of course it will take some time...But from this year we expect to make a turn around," Mukherjee said. COMPANY Hinduja Group flagship, Ashok Leyland, has supplied 100 'Falcon' buses to Ghana. These vehicles were inducted into the fleet of Metro Mass Transit Limited, a transport company, in which the Government of Ghana has 45% stake, for both inter and intra-city applications on 360 routes throughout that country. Chennai-based Apollo Hospitals plans to invest nearly Rs 1,940 crore to add another 2,955 beds across the country in the next three years. The healthcare major, which has 37 hospitals in the country at present, plans to add another 14 to take the total number of hospitals to 51 by 2014-15. We intend to add 2,955 beds in next three years. The total investment for the expansion would come out to be Rs 1,938.7 crore," a Apollo Hospitals spokesperson told PTI. State-owned ONGC is interested in acquiring West Bengal government's stake in ailing Haldia Petrochemicals Ltd (HPL), a top company official said. "We have expressed the desire to take controlling stake in Haldia Petrochemical through our subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL)," he said. The company has sought an audience with West Bengal Chief Minister Mamata Banerjee to make a presentation on its HPL plans. Sahara Infrastructure and Housing announced 10 lifestyle township projects, including nine self-sufficient integrated townships under the brand name of 'Sahara City Homes' and 'Sahara Grace' here. "Out of 58 projects, 21 will be township projects and 37 projects will belong to affordable housing segment. With this, Sahara will enter the affordable housing segment under a new brand name and will address the supply gap in the mass housing segment," Roy said. India's Metkore Alloys and Industries is set to build a world class 165,000 tonnes per annum capacity ferro chrome smelter project in Oman with an envisaged investment of $80 million. This is the third ferro chrome project coming up in Sohar free zone, local media reports said. The project work of Metkore is expected to start in October, with the completion of the work within 18 months. Medical equipment maker Opto Circuits said it has launched its automated external defibrillators under the brand 'Powerheart G5' in Europe. The company's subsidiary Cardiac Science Corporation has launched the product which is designed to provide effective life saving aid to a person who has suffered sudden cardiac arrest (SCA), Opto Circuits said in a filing to BSE. State-owned Bharat Petroleum Corp Ltd (BPCL) and Videocon Industries' Mozambique gas discoveries may hold up to 100 trillion cubic feet of in-place reserves, the block operator said. US energy major Anadarko Petroleum Corp said the total estimated recoverable natural gas resource in Offshore Area 1 was between "30 and 60 Tcf, and the current upside for total gas in place for the discovered reservoirs on the block is approaching 100 Tcf".
R. Wadiwala
TECHNICAL ANALYSIS MOST ACTIVE STOCKS PIVOTAL GUIDANCE
Company NIFTY BANK NIFTY RELIANCE RCOM RELCAPITAL REL INFRA LT STER ICICIBANK SBIN TATASTEEL RPOWER TATAPOWER INFOSYSTCH BHEL ONGC ACC Lower 2 5064.01 9952.06 714.55 63.80 332.66 499.79 1269.06 99.23 818.18 2149.65 405.16 95.94 94.97 2397.32 212.82 254.97 1137.21 Lower 1 5084.50 10032.12 720.30 64.31 335.34 503.81 1279.27 100.02 824.76 2159.89 408.42 96.72 95.74 2416.60 214.54 256.01 1146.36 Axis 5115.00 10112.17 726.04 64.82 338.01 507.83 1289.47 100.82 831.34 2177.12 411.68 97.49 96.50 2435.89 216.25 258.06 1155.51 Higher 1 5145.43 10182.22 731.07 65.27 340.35 511.34 1298.41 101.52 837.10 2192.20 414.53 98.16 97.17 2452.76 217.75 259.84 1163.51 Higher 2 5156.76 10194.73 738.97 67.35 343.77 515.97 1310.00 102.65 845.13 2199.90 419.04 99.28 99.29 2465.77 222.01 264.16 1171.94
BULLISH ON SHORT TERM
SRTRANFIN DABUR BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 527-529-531 SL 518 BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 108-110-113 SL 103
FII and DII Investments
FIIs Date *11 June June-2012 2012 Till Date Purchase 1596.61 18732.80 289986.30 Purchase 739.49 2530.00 53946.89 Sale 1466.23 19519.40 247628.50 Sale 954.15 1712.80 59550.45
Inv (crs)
+130.38 -786.70 +42257.70
Inv (crs)
DIIs
Date *11 June June-2012 2012 Till Date * Provisional Data
-214.66 +817.20 -5603.16
R. Wadiwala
Following the MUTUAL FUNDS
HDFC Capital Builder G
Latest NAV: 101.38 (08/06/12) 52-Week High: 113.55 (07/07/11) 52-Week Low: 88.87 (20/12/11)
Top Holdings: As on 31 May.
Name of Holding
TCS Infosys Bank of Baroda Reliance Industries ITC
Top 5 Sectors
% Net Assets
5.55 5.41 5.37 5.34 5.11
Top 5 Sectors
Financial Technology Energy FMCG Healthcare
% Net Assets
19.25 13.47 11.36 10.85 10.41
Top 3 Holding Company Details TCS
LTP: 1231.15 PB Ratio: 9.73 PE Ratio: 21.95 Year to Date Return: 6.02 Other Funds That Own TCS
Fund name
Franklin Infotech SBI Magnum IT Birla Sun Life New Millennium DSPBR [Link] Reg
% Net Asset
30.57 26.16 20.74 17.00
Date
May 31, 2012 May 31, 2012 May 31, 2012 May 31, 2012
Infosys
LTP: 2419.20 PB Ratio: 4.67 PE Ratio: 17.40 Year to Date Return: -12.51
Other Funds That Own Infosys
Fund name
SBI Magnum IT Franklin Infotech ICICI Prudential Technology DSPBR [Link] Reg
% Net Asset
42.88 42.76 41.24 32.22
Date
May 31, 2012 May 31, 2012 May 31, 2012 May 31, 2012
Bank of Baroda
LTP: 725.05 PB Ratio: 1.09 PE Ratio: 5.95 Year to Date Return: 9.71
Other Funds That Own Bank of Baroda
Fund name
Goldman Sachs PSU Bank BeES Kotak PSU Bank ETF HDFC Infrastructure HDFC Infrastructure
% Net Asset
12.54 11.56 9.72 8.97
Date
Apr 30, 2012 Mar 31, 2012 Mar 31, 2012 May 31, 2012
R. Wadiwala
DERIVATIVES NOTES
Nifty June 2012 futures were at 5040, at a discount of 14.10 points compared to spot closing of 5054.10. Turnover on NSE`s futures & options (F&O) segment rose to Rs 112566.68 crore from Rs 105098.49 crore on Friday, 8 June 2012.
% Change OI
0.43
Institutional Investment Trends
(in Crores) JUNE 11, 2012
BUY
1747.11
SELL
1220.07
Net Buy/Sell
527.04
OIEoD
8675.37
INDEX FUTURES
State Bank of India (SBI) June 2012 futures were at 2152, at a discount compared to spot closing of 2159.60. L&T June 2012 futures were at 1283.05, at a premium compared to spot closing of 1278. ICICI Bank June 2012 futures were at 825.40, near spot closing of 825.05. In the cash market, the S&P CNX Nifty lost 14.25 points or 0.28% to settle at 5,054.10, its lowest closing level since 7 June 2012.
STOCK FUTURES
1237.89
1280.06
-42.17
22505.38
0.29
Put Call Ratio Symbol NIFTY NIFTY BAJAJ-AUTO MINIFTY LT NIFTY INFY ABB MARUTI ORIENTBANK RANBAXY WIPRO CIPLA Expiry Date 25-Jun-15 24-Dec-14 26-Jul-12 26-Jul-12 30-Aug-12 27-Jun-13 26-Jul-12 28-Jun-12 26-Jul-12 28-Jun-12 26-Jul-12 26-Jul-12 26-Jul-12 Put 154300 56500 2250 3560 26000 244600 61250 1000 5750 3000 3000 6000 12000 Call 50 200 125 380 3250 36550 13125 250 1750 1000 1000 2000 4000 Ratio 3086.00 282.50 18.00 9.37 8.00 6.69 4.67 4.00 3.29 3.00 3.00 3.00 3.00
R. Wadiwala
DIVIDEND AND OTHER INFORMATION
Poly Medicure Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 28, 2012 have recommended a Dividend @ Rs. 3.00 per Equity Shares of Rs.10 each for the Financial Year 2011-12. United Breweries Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on June 08, 2012 has recommended payment of a Dividend of Re. 0.70 per equity share of Re. 1/- for the Financial Year ended March 31, 2012 and has also approved payment of 3% dividend on Cumulative Redeemable Preference Shares to Scottish & Newcastle India Limited. Berger Paints (I) Limited has informed the Exchange that Mrs. Rishma Kaur have automatically vacated office of Alternate Directorship pursuant to provisions of Section 313 of the Companies Act, 1956 on May 29, 2012 on the return of the original directors to the State where Board Meetings are normally held and was re-appointed as Alternate Director to Mr. Kuldip Singh Dhingra, effective June 02, 2012 respectively.
DISCLAIMER
This material is for your private information, and we are not soliciting any action based upon it. Transactions involving stocks and derivatives give rise to substantial risk and are not suitable for all investors. The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Opinions expressed are our current opinions as of the date appearing on this material only.
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R. Wadiwala
