Sensex Falls; Oil & Gas, Banks, Capital Goods Down!!!

SENSEX          17697.68      -107.12 (-0.60%)

NIFTY              5320.90       -39.80 (-0.74%)

Metals weigh on stock markets

Asian stock markets have opened the day on a negative note with nearly all major markets trading in the red except for Japan. Stock markets in Indonesia (down 1.1%), Hong Kong (down 1%) and Singapore (down 0.9%) are the major losers. Stock markets in Japan (up 0.2%), however, have opened the day on a positive note. The Indian stock market have opened the day on a negative note with stocks in the metals and auto space leading the losses.

The BSE-Sensex is down by around 50 points (0.3%), while the NSE-Nifty is down by around 24 points (0.5%). Mid cap and small cap stocks are trading in the positive zone however, with the BSE Mid Cap and the BSE Small Cap indices up by about 0.1% and 0.2% respectively. The rupee is trading at 48.87 to the US dollar.

Energy stocks have opened the day on a negative note with Essar Oil and Cairn India leading the pack of losers. However, state owned firms, HPCL (Hindustan Petroleum Corp Ltd) and BPCL (Bharat Petroleum Corp Ltd) are witnessing buying interest. Recent studies conducted by Reliance Industries (RIL) have shown that the decline in output of Dhirubhai-1 and Dhirubhai-3 fields in the Krishna Godavari basin could be irreversible. These fields are a part of the D6 block. The output from these two fields is down by approximately 40% from its peak of 60 mmscmd (million metric standard cubic meter per day) in 2009 end. This will mean that industries buying gas from the D6 basin will now have to import gas, which is more expensive. Without considering the taxes and levies, the cost of imported gas is twice as expensive as the gas available from its D6 gas basin.

Power stocks have opened the day on a positive note with NTPC (National Thermal Power Corp) and Adani Power leading the gains. Power Grid Corporation is planning to form a joint venture with a few states for setting up intra state transmission networks. The management has stated that as the power distribution and generation capacity has increased significantly in past few years, it is important to have intra-state grid connectivity. For the same reason the company is in talks with a few states. It further stated that many states have taken initiatives in increasing the power capacity and now there is a growing need for better power transmission. The states of Orissa, Sikkim and Assam among others are being considered by the company for this joint venture. In the past, the company has adopted similar joint venture model on public private partnership (PPP) basis with eight companies for intra state connectivity.

Source :- Equity Master; Money Control

Sensex maintains upsurge on broad-based buying

SENSEX         17757.00       468.17 (2.71%)                                NIFTY            5342.95         141.15 (2.71%)

European deal boosts markets

Asian stock markets have opened the day on a firm note following some temporary relief as far as the European debt crisis is concerned. Stock markets in Hong Kong (up 1.9%), China (up 1.1%), Japan (up 0.9%) and Singapore (up 0.7%) are leading the gains. The Indian stock market have opened the day on a strong note. Stocks in the metals and IT space are leading the gains.

The BSE-Sensex is trading higher by 521 points (3%) and the NSE-Nifty is up by around 155 points (3%). BSE Midcap and BSE Small cap stocks are trading in the green, with the BSE Mid Cap and BSE Small Cap indices up by 1.2% and 0.8% respectively. The rupee is trading at 48.87 to the US dollar.

Banking Stocks have opened the day on a firm note with State Bank of India (SBI) and Bank of Baroda in the green. India's largest PSU bank, SBI will be the biggest beneficiary of the recapitalisation program for banks by the government. SBI will be eligible to get Rs 80 bn in the current financial year. The amount will be given to SBI through various forms including preferential shares. This will help SBI to increase the capital base and it will also be able to plan its follow-on public offer (FPO). The FPO is most likely to hit markets in the next fiscal year. This effort by the government to capitalise PSU banks is to adhere to the 9% Tier-I capital under Basel-III norms. These norms are supposed to be implemented between 2013 and 2019.

Power stocks have opened the day on a firm note with Power Grid Corporation of India Ltd (PGCIL) and National Thermal Power corporation (NTPC) leading the gains. As per a top company official, state-run PGCIL is aiming to achieve 30-40% growth in the telecom business in the current financial year 2011-12. During FY11, the telecom business had contributed about Rs 1.9 bn, which was 2% of the company's total revenue. PGCIL had ventured into the telecom business a few years ago. It has a telecom network of about 21,000 km optic fibre cable providing connectivity to all the metros, major cities and towns, apart from some presence in remote areas. Of over one lakh towers that the company owns, it has so far leased 800 towers and has floated tenders for another 30,000.

Source:- Equity Master

Markets open on positive note!!!

SENSEX         17018.26          78.98 (0.47%)

NIFTY            5121.55           23.20 (0.46%)

Is China's GDP growth sustainable?

Being an export oriented economy China's growth is predominantly dependent upon the external demand from the West. And with the western world slowing down China's economic growth has come under severe pressure. Managing inflation and (economic) growth has always been a tricky job for the central bankers around the world. Especially if growth is dependent upon external factors like exports as in such instances attempts to re-instill growth via monetary policy tools is futile. China is a classic example to this case.

Waning demand from the western world has seen economy growing at its weakest pace in the last quarter during the last two years. While consumer inflation is in the region of 6%, high food prices are a cause of worry. Thus, the Chinese government too, like India, is facing twin problems of managing growth and inflation. However, the solution to their problems is different as the growth drivers are diverse. India's growth is not largely influenced by external factors (exports) as is the case with China.

So, if China has to resolve its growth issues it has to focus on reducing its dependency on the west. And this can be done by concentrating on job creation which has been impacted by the weakening demand from the West. It may be noted that steps to support the labor intensive industries and small businesses are already on the anvil. This would not only reduce the volatility in growth but also add stability to it.

As far as the inflation issue is concerned it may be noted that consumer inflation is within the comfort zone with the exception of food. And since food inflation is triggered by supply side issues the government can do very little about it. However, improving back end infrastructure and food storage facilities can help reduce food wastage.

Apart from food inflation the Chinese government also needs to take steps in curbing property price inflation. It may be noted that property prices in China are at record highs despite the annual property inflation being at 3.5%. This signifies of some kind of a property bubble in China. And we all know what happened in the West once the property bubble burst. In order to avoid such a scenario, government must take steps in rationalizing the property prices. Measures should also be taken in expanding affordable housing to the poor. Getting faster and easier access to land for cheaper projects would bring a firm grip on affordable housing construction.

Thus, if China manages to reduce its dependency on West and finds an amicable solution to the property price woes it may continue to grow at a healthy pace as witnessed in the past
Source:- Equity Master

Sensex shoots up 300 pts on global rally

SENSEX         17078.69          293.05 (1.75%)

NIFTY            5137.30              87.35 (1.73%)

Bad news for housing finance Cos?

In its new move by National Housing Bank (NHB), the regulatory body for housing finance, pre-payment penalties are completely banned for the floating rate loans. There will no longer be any fee levied on floating rate loans towards the pre-closure of the loans. This rule would be applicable irrespective of the nature of source of funding for the pre-payment of the loan. Source of funding could be own sources (such as savings or loans from relatives) or loans from other banks. With respect to fixed rate loans, only borrowers who repay from their own pocket will be exempted from the penalty. In case borrowers shift to another bank or Housing Finance Company (HFC), the penalty will be applicable. In another move by NHB, the regulator has also asked the 54 HFCs under its review to ensure that all borrowers pay the same interest rate, irrespective of when the loan was taken. Thus floating rates will now be uniform to both old as well as new customers with a similar risk profile. This is regardless of when they entered into a contract.

All these moves were projected in the media as a good gesture for the borrowers. It was like a cold wind for the borrowers who were feeling the brunt of the incessant key rate hikes by Reserve Bank of India (RBI). At the same time, it was taken as negative news for the housing finance companies. After all, this payment penalty was being used by the companies for their Asset Liability Management(ALM). At the same time, it was a source of revenue for the companies to the tune of up to 4% of total revenues. As a result, the stocks of these companies witnessed a selling pressure after the announcement made by NHB.

Are these moves really good for the borrowers? Would the HFCs be suffering in the long run? We really do not believe so. True, some customers would reap the benefits in the short term. However, this move by NHB has left the HFCs with risk of ALM mismatch. Who would pay for this risk in the long run? Only the borrowers. Now the HFCs are left with no choice but to build in pre-payment risks into the loan costs itself. This would only increase the cost of borrowings.

In India, we do not have a mature hedging market for interest rate risks. That would result into imperfect pricing for the risk. And at the end, the customers would be paying higher than warranted costs of risks.

What is the way forward? Now NHB should make policies to address the pre-payment risks. Otherwise, the HFCs would start taking steps to mitigate this risk. And in the long run, the entire community of borrowers may suffer.

Source:- Equity Master 

Indian stocks markets open in red

SENSEX                   16960.38         23.49 (0.14%)

NIFTY                       5096.25            4.35 (0.09%)

The BSE Sensex was 16,960.38, down 23 points over the previous close. It had earlier touched a day’s high of 16,987 and a day’s low of 16,873. It opened at 16,975.NSE Nifty was quoting 5,096, down 4 points over the previous close.It has earlier touched a day’s high of 5,108 and a day’s low of 5,083. It opened at 5,106.

Maruti Suzuki, BHEL, Coal India, Bajaj Auto, L&T, Tata Steel, Sun Pharma, Axis Bank, Reliance Infra, were among the notable leaders in the Sensex and the Nifty.

Infosys, Tata Power, Wipro, ONGC, Sterlite Inds, Cipla, DLF,Bharti Airtel,NTPC, HDFC Bank,HUL, were among the notable losers in the Sensex and the Nifty.

Source:- India Infoline

Results today: L&T, IDEA Cellular, JSW Steel, United Phosphorus, NIIT,  RCF, Federal Bank, Arvind, HCC, Asian Paints, Zensar Tech, Godrej Consumers, Texmaco Rail, Indiabulls Financial, Shoppers Stop, HT Media, Godrej Properties, PVR, Uttam Galva, Tata Metaliks, Aditya Birla Chemicals, Lanco Industries, Vadilal Industries, Kirloskar Oil, Akash Optifibre, Atul, Essel Propack, Finolex Industries, Foseco India, GIC Housing Finance, Gujarat Industries Power, Gujarat Lease Financing, Kansai Nerolac Akzo Nobel India, Geometric, Blue Dart, Thomas Cook, Ingersoll Rand, Gujarat Fluoro, Nocil, Alfa laval, Onward tech, Panacea Biotec, Greaves Cotton, Texmaco, Supreme Industries

Stock In NEWS

- CAG to probe drilling of D6 dry wells – ET

- SBI hikes home loan tenure to 30 years; rising rates prompt extension by 10 more years. (BS)

- HC halts Adani group’s development works in its Mundra Port & SEZ project in Kutch district (DNA)

- Maharashtra govt to take action against Lavasa within 2 weeks– ET

- Tata Motors to raise USD 750 million via ECBs to meet working capital requirement & reduce debt (BS)

Source:- Moneycontrol

Morning Bell !!!!..........Market in Red due to Global cues

 

SENSEX  16794.91    -290.43 (-1.70%)                                   NIFTY  5054.65   -84.50 (-1.64%)

The main Indian equity indices have slipped in early morning trade amid reports that European leaders are still divided on the issue of expanding the eurozone rescue fund ahead of this weekend's important summit in Brussels.

A weak assessment of the US economy by the Federal Reserve in it's Beige Book survey is also weighing on the mood partially. As far as domestic cues are concerned, the Finance Minister's admission that key economic targets for FY12 will be difficult to meet has also dampened the sentiment before the RBI's policy meet on Oct. 25.

The BSE Sensex and the NSE Nifty are down by ~1% each at this juncture. The breadth is also weak due to losses in the Small-Cap and Mid-Cap counters. All the sectoral indices on the BSE are in the red, led by Metals, Capital Goods, IT, Oil & Gas, Banking and Realty indices

Source:- India Infoline

Results today: Bajaj Auto, Cairn India, Yes Bank, Ultratech Cement, Indiabulls Real Estate, IDBI Bank, Hexaware Tech, Sterlite Tech, Thermax, Dewan Housing, KPIT Cummins, Dhanlaxmi Bank, Exide, Industries, SREI Infra, Mahindra Forgings, GHCL, Piramal Healthcare, Bajaj Holdings, HSIL, Bharat Bijlee, Noida Toll, Kirloskar Brothers, AGC Networks, Hindustan Media Ventures, Wabco India, Ashapure Minechem, DCW, Deepak Fertilizers, FAG Bearings, Gujarat Alkalies, Gujarat Industries Power, GSFC, Indiabulls Securities, ESAB India, GM Breweries, Gujarat Narmada Valley fertilizer, Sagar Cements, State Bank of Travancore, Swaraj Engines, Nilkamal, Excel Crop Care, Indiabulls Power, Indoco Remedies, Granules India, Repro India, Kewal Kiran Clothing, DB Corp, Fresenius Kabi, Infoedge India

Stock In NEWS

- Moser Baer amicably resolves all issues with 150 striking workers

- AP Paper to use the sale proceeds for expansion in its textile & tea businesses—ET

- Oil companies pitch for fuel price hike; companies forced to borrow as govt hasn’t paid them subsidy for last quarter (ET)

- Marg makes an open offer to acquire 76.5 lakh shares at Rs 91/sh (CMP: 81.70)

- Thomas Cook in talks with Travelex to sell its Forex unit in India (FE)

- Abbott plans to split Medical products and R&B biz, Indian arm to fall under medical products biz –Mint

- Panel mulls 26% hike in tax on bidis & 15% tax on for cigarettes (FE)

- SEBI issues show-cause notice to India Infoline for certain violations, brokerage says seeking consent settlement – Mint

- GVK Power & Infra acquires Siemens 14% stake in Bangalore Intl Airport for Rs 613.82cr ((Holding now 43%))

Source:- Moneycontrol

Asian Markets

Today, the Asian indices are trading in the red with Hang Seng and Shanghai trading lower by 1.7% and 1.5% respectively. Nikkei is down 0.9% while Taiwan is down 0.8%. Strait Times and Kospi are down by 0.4% and 0.2% respectively.

Outlook for Today

Today, we expect the Indian Markets to open lower following weak global cues. However, later during the day it could try and recover part of the losses. Among the sectors, Banking and IT stocks look weak. Sectors like FMCG and Healthcare (defensive sectors) could outperform.

Morning Bell !!!!....Sensex 200+, All sectoral indices on the BSE are in the positive terrain

The key Indian equity benchmarks have advanced in early morning trade, spurred by a firm trend across Asian markets and overnight rally in the US markets.

The positive undertone has been underpinned by an unconfirmed report by a British newspaper that Germany and France have agreed to boost the eurozone bailout fund. another report has cited officials as saying that the UK paper's report is untrue.

  

DLF, SBI, L&T, HDFC Bank, BHEL, ICICI Bank, Tata Steel, Wipro, ONGC, RPower, Maruti, Hero MotoCorp,Tata Motors, HCL Tech, Axis Bank, were among the notable leaders in the Sensex and the Nifty.

All sectoral indices on the BSE are in the positive terrain.

Auto, Realty, Metals, Banking, Consumer Durables and Capital Goods indices are among the top winners so far on the BSE. The FMCG index on the BSE is subdued.

The India VIX on the NSE is down by over 6% at 24.25 after being as low as 24.16. Its previous close was 25.90. In contrast, the CBOEX VIX in the US climbed overnight.

Hindustan Unilever, Bharti Airtel, Tata Power, Siemens, BPCL were among the notable losers in the Sensex and the Nifty.

US stocks climbed amid reports that Germany and France have agreed to shore up the eurozone bailout fund. But, another report has denied the same stating that the debate on the size of the EFSF may continue for a while. Consensus view is unlikely anyways.

Asian markets are holding firm. European indices finished mixed following the fresh downgrade of Spain and a Moody's warning to France over its "AAA" rating outlook.

Bank, Crompton Greaves, Dish TV and Hindustan Zinc will be in focus before their earnings. Hero MotoCorp will also be in the spotlight after its Q2 results.

Results Today:

HDFC Bank, Crompton Greaves, Mastek, Indraprastha Gas, Hindustan Zinc, Biocon, Dish TV, Bajaj Finance, Bajaj Finserv, Alembic, JB chemicals, Rallis India, Zee Learn, Zee News, WWIL, Torrent Power, Navin Flourine, Everest Industries, Manali Petro, Shree Precoated Steels, Ajmera Realty, Kirloskar Industries, Camlin, NRC, Madras Fertilizers, Raymond, Infotech Enterprise, Tata Investment Corp, Nippo Batteries, Excel Industries, RPG Lifesciences, Dolphin Offshore, Supreme Petrochem, Essar Ports, Eclerx, Hinduja Ventures, JSW Ispat

Stock In NEWS

- GVK Power arm ups stake in MIAL to 50.5%

- SEBI may settle insider trading charges against RIL , by asking the co to pay up to Rs 2052 cr (Mint)

- RIL to bid for EL Paso shale assets in USA (TOI)

- GMR , Lanco power plants face cut in D6 Gas supply; govt to take action as GMR’s Tanir Bavi & Lanco’s Kondapalli unit sell power at market rates (ET)

- Glencore looks to buy 24% in Cronimet Alloys for around Rs 50-75 crore (CMP Rs 138.60, M-cap Rs 170 cr)

- Coromandel International board approves issue of bonus debentures in the ratio of 1 debenture of Rs 15/- for every equity share held

- 3I infotech board meet on October 21 to consider rights issue of shares

Source:- Moneycontrol

Asian Markets

Today, the Asian indices are trading mixed with Hang Seng and Nikkei trading higher by 0.9% and 0.6% respectively. Shanghai is down 0.3% while Kospi and Taiwan are down 0.1% respectively. Strait Times is up by 0.3%.

Commodities
Oil for November delivery rose $1.96 to settle at $88.34 a barrel.
Gold futures for December delivery fell $23.80 to settle at $1,652.80 an ounce.

Key Indices

SENSEX            16945.72                197.43 (1.18%)

NIFTY               5098.70                  61.20 (1.21%)

CNX Midcap      7126.35                  78.70 (1.12%)

Outlook for Today

Today, we expect the Indian Markets to open on a positive note following strong global cues. Later, it could take cues from the European markets. Among the sectors, Banking stocks could underperform while Capital Goods, Metals and Oil & Gas look weak.

Closing Bell !!!!!.......TCS and HCL Tech took huge beating as investors disappointed with their quarterly performance

Markets got butchered quite badly on Tuesday on the back of broad based selling. It reacted to a fall in global markets post a statement from German FM.


While the BSE Sensex finally closed 276.8pts or 1.63% lower at 16,748.29, the Nifty lost 80.75pts or 1.58% to close at 5,037.50. Broad market indices too ended lower. While the BSE Midcap index shed 1.21%, the BSE Small Cap index lost 0.99%. Market breadth was negative as the A/D ratio was 0.52:1 on the BSE. NSE cash turnover was Rs.8,797crs. Vs. Rs.9,143crs. in the previous session.

All the sectoral indices ended lower. The top losers were the BSE IT, Realty, Capital Goods and Metal indices. The top gainers from the BSE 30 were Coal India and HDFC Bank. The top losers were TCS, Tata Motors, Hindalco and Sterlite.

With the markets falling sharply today, the immediate supports of 5000 will be crucial levels to watch in the short term. A failure to hold above these levels could see a further correction in the markets.

Morning Bell !!!!............Global cues drag SENSEX 200 pts down

The main Indian equity benchmarks have taken a beating in early morning trade, extending the decline from the previous session, amid renewed doubts over Europe's ability to produce a comprehensive plan to tackle the debt crisis at the Oct. 23 Brussels summit.


Coal India, NTPC, HEROMOTOCO, BPCL, NTPC were among the notable leaders in the Sensex and the Nifty.

Infosys, SBI, ICICI Bank, Jindal Steel, Tata Motors, DLF, Tata Steel, Wipro, TCS, Hindalco Inds, were among the notable losers in the Sensex and the Nifty.

The market breadth is not in favor of the bulls with Small-Cap and Mid-Cap indices also in the red. All sectoral indices on the BSE are trading in a negative terrain.

The BSE IT index is the top loser, down 3% after TCS and HCL Tech results failed to enthuse investors. Both the stocks are down over 6% each. Other It bellwethers - Infosys and Wipro are also down sharply.

Realty, Metals, Banking, Consumer Durables and Capital Goods indices on the BSE are down 1-2%.

Pharma, Oil & Gas and Auto indices have lost 0.5% or more. The remaining indices on the BSE are flat to slightly down

Results Today:

HCL Tech, Hero Motocorp, JSPL, IndusInd Bank, Patni Computer, Petronet LNG, Chambal Fertilizers, Crisil, Coromandel International, NIIT Tech, BOC India, Aditya Birla Money, Torrent Pharma, Maharashtra Scooters, Kirloskar Brothers, Edelweiss Financial, Symphony, Chennai Petro. MM forgings, KSB Pumps, SE Investments, Sutlej Textiles, Blue Star Infotech, Premier, Honeywell Automation, Prism Cement, Fame India, ADOR Welding, Inox leisure, Shalimar Paints, Oudh Sugar mills, Aro Granite Industries.

Stock In NEWS

- Crisil : Board to consider buy back of shares

- Symphony board to consider stock split

- Santowin board approves stock split from Rs 2 to Rs 1/sh

- FDI caps for broadcasting sector set to rise to 74% from the existing 49% (FE)

- Govt suspends manufacture, sale of cancer drug Letrozole - Ranbaxy to be impacted as the company launched this drug on July 25 in UK, Romania & France

Source:- Moneycontrol

Key Indices

SENSEX 16766.78 -258.31 (-1.52%)
NIFTY 5041.60 -76.65 (-1.50%)

CNX Midcap 7055.75 -83.80 (-1.17%)

Closing Bell !!!!!........Markets closed marginally lower amid a choppy session

Markets closed marginally lower amid a choppy session on Monday. This was despite positive global cues. The Sensex/Nifty remained in negative terrain due to a sharp fall in heavyweight Reliance Industries post its second quarter earnings.

While the BSE Sensex finally closed 57.6pts or 0.34% lower at 17,025.09, the Nifty lost 14.05pts or 0.27% to close at 5,118.25. Broad market indices ended on a mixed note. While the BSE Midcap index shed 0.01%, the BSE Small Cap index gained 0.22%. Market breadth was negative as the A/D ratio was 0.92:1 on the BSE. NSE cash turnover was Rs.8,643crs. Vs. Rs.9,930crs. in the previous session.

The sectoral indices ended with a mixed bag. While the top gainers were the BSE Auto, CD and Bankex indices, the top losers were the BSE Oil and Gas, Capital Goods and Power indices. The top gainers from the BSE 30 were Tata Motors, Maruti, DLF and Sterlite. The top losers were Reliance, NTPC, JP Associates and BHEL.
The 5169-5198 Nifty resistances continue to remain crucial resistances to watch in the coming sessions. A failure to move above these resistances could see the Nifty continuing to trade within the 4720-5198 levels.

On the global front, Asian markets closed 1-2% higher while Shanghai rose just 0.4%. European markets were up more than 0.6%, at the time of closing of Indian equities



Morning Bell !!!!!.............RIL will be in focus after it reported Q2 results on Saturday. TCS and HDFC are among the big names announcing their results today

Indian equities logged one of their best weeks in recent memory, notwithstanding disappointing IIP and inflation reports. Strong earnings from Infosys coupled with growing optimism over the euro zone situation and hope of QE3 in the US were among the factors that drove the sentiment.


Much of that feel-good will spill over to this week. A positive start is in the offing owing to healthy trend across overseas markets. US indices climbed on the back of Google’s stellar results and encouraging retail sales. European benchmarks too closed higher.

Asian markets are up and about this morning after G20 finance chiefs said European leaders would decisively address the debt crisis through a comprehensive plan to be unveiled at a regional summit slated for Oct. 23.

RIL will be in focus after it reported Q2 results on Saturday. TCS and HDFC are among the big names announcing their results today.

Overall, the undercurrent seems to have improved. The continuation of this positive trend will hinge on corporate earnings, China’s GDP data (due on Tuesday), US economic statistics and European developments.

Results Today: Granules India, HDFC, IFCI, ING Vysya Bank, Mahindra Lifespaces, Mindtree, Motilal Oswal, Peninsula Land, Persistent Systems, South Indian Bank, TCS and Zee Entertainment.

Stocks In NEWS

- Rain Commodities board to approve buy back of shares in the board meet on Oct 25

- Jet fuel prices cut marginally by Rs 325/Kl

- Land Acquisition Bill may not hit the parliament soon: BS

- RTS Power approves allotment of 3.8 lakh equity shares at Rs 36/sh ((CMP: 30.50))

- States have decided to impose 4 – 5% VAT on sugar and textiles from next fiscal – BS

- LIC hikes stake in BoB to 7.12% from 4.67%

- Wholesale sugar prices up 3-5% head of festive demand – ET

- Finmin mulls raising cap for FII investment in infra bonds from current USD 5 billion – ET

- Maruti ’s component makers suffer Rs 1400 crore loss on Manesar unit (ET)

- AEG, Electrotherm to call off solar business deal, as companies cite poor demand from corporate & state govt (ET)

- Moser Baer staff strike over bonus demands (BS)

- RIL to suspend drilling for oil & gas until revaluation & fresh plan is submitted to govt (Mint)

- NIIT approves divestment of entire holding in its subsidiary NIIT Ventures for USD 110 million (M-cap:Rs 719cr, CMP: Rs 43.60)

Source:- Moneycontrol

Key Indices

SENSEX 17084.31 1.62 (0.01%)

NIFTY 5133.35 1.05 (0.02%)

CNX Midcap 7163.80 27.85 (0.39%)

SIP v/s Lump Sum Investment...Which one is better????

Betal : Systematic investment plan (SIP) or lump sum investment is the million dollar question! especially, in recent times when the stock markets move up by 500 points in one week and crash by another 500 points in the very next week.

King Vikram: Consider this: If Rs5000 was invested every month through an SIP in HDFC Equity Fund (HEF) since 1 January 2008, when equity markets were skyrocketing before it tanked, you would have got a return of 39.22% by end-2010. However, if you had invested the entire Rs1.80 lakh as a lump sum, you would have earned just 10.80%. A similar SIP, however, started on 15 March 2009 when markets started to rise, would have yielded 43% till date compared with 69% if you had invested the entire amount as a lump sum. We compared SIP and lump sum returns for a couple of large-cap-oriented equity funds, HEF and Templeton India Growth Fund, and a mid-cap-oriented fund, IDFC Premier Equity Fund, over the past five years and the difference in returns were negligible.

Analysis-: In rising market lump sum investment wins but in volatile market SIP is better in all the aspects.

As an investor you always look forward to investing in an asset class that would maximize your returns and history shows that equities as an asset have been most rewarding. Investing in equities isn’t a cakewalk though. It requires a lot of patience and research to build a fortune with equities. We at Right Horizons, through the Systematic Investment plan {SIP] make it possible for you to benefit from investing in equities.

Morning Bell!!!........S&P downgraded Spain's credit rating,Fitch cut ratings of top UK banks

The Indian market has got off to a cautious start, with the BSE Sensex and the NSE Nifty posting modest gains in early morning trade amid anxiety ahead of today's important inflation numbers. The undertone is also guarded due to weakness in overseas markets. S&P downgraded Spain's credit rating by one notch while Fitch cut ratings of top UK banks and warned about possible downgrade of a number of other top banks.

A warning from the ECB against asking private Eurozone bondholders to take higher haircuts coupled with disappointing Chinese trade data is also weighing on the sentiment. Lower-than-expected earnings from US banking giant JP Morgan has also prompted investors to take a step back following the recent advance.

RIL,Siemens, NTPC, Wipro, Tata Power,Sun Pharma,Jindal Steel,ITC,Ranbaxy, TCS, Cipla were among the notable leaders in the Sensex and the Nifty.

DLF, Coal India, Hindalco Inds, Maruti Suzuki,Tata Steel, ONGC, ACC, HDFC were amongthe notable losers in the Sensex and the Nifty.

Coming back to the Indian markets, the indices seem to be holding on to slim gains after consolidating in the previous session. Indian stocks had rallied on Wednesday, notwithstanding another dour IIP report, as IT major Infosys came out with strong earnings and improved guidance.

Market breadth is positive so far as most indices on the BSE are trading in the positive terrain. Only the BSE Realty index and the BSE Metal index are in the red. The Small-Cap and Mid-Cap indices too are up marginally.

Results Today

Geojit BNP Paribas Financial Services, Balaji Telefilms, Heidelberg Cement, Infomedia 18, Gateway Distriparks, Reliance Industrial Infra, RS Software

Stock In NEWS

- SpiceJet board allots 3.5 crore shares to Kalanithi Maran at Rs 36.48/sh (CMP: 21.05); promoters stake to go up from 38.6% to 43%

- PE firm Carlyle & Advent in race to pick up British Telecom’s 23.2% stake in Tech Mahindra – TOI

- HDFC AMC under SEBI scanner for shady trades; market regulator looking into call records & trade data of some members of fund management (ET)

- Reliance Infra in talks to buy Rs 2000 crore road projects in Tamil Nadu & Karnataka (ET)

- Century Textiles cement business set to merge with Ultratech (BS)

- MPS makes an Open offer to acquire 33 lakh shares at Rs 37/sh (CMP: 37)

- State Cos may be allowed to buy back govt stakes (FE)

Source:- Moneycontrol



KEY INDICES

SENSEX 16927.14 43.22 (0.26%)

NIFTY 5085.35 7.50 (0.15%)
CNX Midcap 7102.60 -3.80 (-0.05%)

Morning Bell !!!!.........Sensex crosses 17000 ,Key Indices Rise on Europe Plan

The key Indian stock indices advanced in early morning trade on the back of solid gains across global markets due to rising hopes that European leaders are showing urgency in handling the credit crisis. Also Fed policymakers last month left the door open for further monetary easing to shore up US economic growth.

TCS, SBI, ONGC, BHEL, RCOM , Infosys, ICICI Bank, Wipro, Tata Motors, M&M, ITC were among the notable leaders in the Sensex and the Nifty.

Axis Bank, Jindal Steel, Sun Pharma, Sesa Goa, RIL, DLF, Maruti Suzuki, RPower, were among the notable losers in the Sensex and the Nifty.

Market breadth is favorable for the bulls as the Small-Cap and Mid-Cap indices have also posted modest gains.

A day after Infosys announced better-than-expected Q2 results and improved guidance. IT stocks are pacing the advance, Infosys is up along with others like TCS, Wipro and HCL Tech. The BSE Teck index is also up by 1%. Banking, CD, Power, PSU and Auto stocks have seen select buying.

The risk trade is back in vogue, at least for the time being amid hopes that the eurozone debt crisis may not get worse from here on and that the US will avoid another recession.

Results Today

AP Paper, Asahi India, Kajaria Ceramics, Piramal Lifesciences, Praj Industries and VST Industries

Stock In NEWS

- Agnus Capital buys 7.43%, Pronomz Ventures buys 14.99% stake in Strides Arcolab at Rs 105/sh (CMP Rs 350/sh)

- ONGC Videsh in pact for 25% share in Kazakh Satpayev oil block

- Jet Airways signs a MoU with Vietnam Airlines for a strategic co-operation

- NRB Bearings board approves scheme of arrangement between NRB bearings & NRB Industrial bearings

- Ashoka Buildcon to dilute stake in arm & raise around Rs 737 crore for its upcoming projects

- DoT asks TRAI to reconsider pricing for excess spectrum; breather for Idea , Bharti & vodafone

- SBI may delay overseas fund –raising plans

- Banking regulator plans to frame new rules for FCCBs; may require companies to set aside funds from profits for redemption of bonds

Source:- Moneycontrol
Indices

SENSEX 17033.26 74.87 (0.44%)

NIFTY 5122.95 23.55 (0.46%)

CNX Midcap 7160.55 49.45 (0.7%)

MANTRA FOR RETAIL INVESTORS

Market have brought back the 2008 ghosts to remind us that western debt will continue to haunt us life time. Only 'strong will investors' can survive this situation and emerge stronger than before. The rules are simple but very difficult to follow and withy little bit of understanding, anyone can make up their mind to stay and buy more while the market continues to fall.

It’s true that the market has fallen and the portfolio of retail investors is down by 25-30% minimum. But some expert and analyst are trying to act very smart with their words that they have predicted this situation long back and in actual sense it is not true. The investmenty went down not only to the retail investors but also for big businessmen like Mukesh Ambani. I will attempt to comparey the real life investments made by Mr. Ambani recently and how we can learn from this to remain calm and come back stronger.

Investment made by Mukesh Ambani-(EIH Ltd operates Oberoi Hotels}-:

Exactly in august 2010, Mukesh Ambani bought 5.54 cr shares {14.12% stake} in EIH Ltd. For 1021 cr rupees that is for Rs 184/share. Immediately after he bought this stake, EIH announced the right issue of 5 shares for every 11 shares held at Rs 65/share. So Mr. Ambani was eligible for additional 2.52 cr shares taking his investment to Rs 1183 cr and final price per share comes out to be Rs 146/share.

EIH Ltd. Is trading at Rs 86 now {Aug 26, 2011} and his investment is down by 41%. Do you think a businessman like Ambani did not do his due diligence before investing? Of course he did. But the truth is no matter who you are how you analyze, uncertainty and stock market are inseparable. Some people argue that some guys make money irrespective of the market. If that is true, why did great investors like Rajat Gupta {former Managing Director of McKinsey} was involved in insider trading? I agree some guys make money but only with this kind of unscrupulous practices}.

So the point I am making here is, you can be Ambani and still will not be able to predict what’s going to happen in the market. Do you think Mr. Ambani would have bought EIH shares at Rs 146 if he knew market will fall. If he knew then, he would have of course waited for the market to fall and bought the same stake for less than Rs 800cr and might have saved 500 cr in the process. But what’s the lesson here? Even though his investment declined in value, he remains calm and does not panic and sell. Once the market reverses the trend, he will not only get back his investment but generates decent return over investment as well. All he does is remain invested and ride out the volatility. Why can’t a retail investor do the same thing? It is possible if you stop looking at your portfolio every day.

Market has become far more attractive now and this is definitely a great opportunity who have missed out in 2008-09 market crash. Forget about where SENSEX is trading now, expert can say whatever they want {14 times EPS or 12 times EPA etc.}. If you are not buying now and wait for the bottom fishing, you will get poor quality of fish later on. Good stocks move up faster when market recovers. Most of them will trade at attractive valuation. But patience is the key here. One should not get panic when stock price goes down from purchase price. Believe in your Investment and keep averaging the good stocks. We need to take calculated risk in order to be successful in anything let alone the stock market.

Conclusion:

Stocks are available at very good valuation and investors who follow the disciplined investment process can reap rich rewards in the next few years.

Morning Bell !!!....Infosys rallied after the company announced Q2 Results

The key Indian stock indices advanced in early morning trade, due to strength in the IT space after India’s second largest IT company- Infosys Q2 results beaten market estimates. The company also increased its revenue and EPS guidance for FY12.

RIL, Infosys,Wipro,ICICI Bank, TCS,Bajaj Auto,BHEL,Tata Power, Sun Pharma, Siemens, RCOM, Ranbaxy were among the leaders in the Nifty and Sensex.

Tata Motors, NTPC,HDFC,M&M, Bharti Airtel, BPCL were among the notable losers in the Nifty and Sensex.

Infosys rallied after the company announced consolidated net profit of Rs. 19.06bn as compared to Rs. 17.22bn in the previous quarter. The company has posted consolidated net sales at Rs. 80.99bn as compared to Rs. 74.85bn in the previous quarter.

The BSE IT index is the top gainer, rose by more than 3%. The BSE Tech index is up by 2% while the Pharma index is up 1%. The BSE Auto index is the only one trading in the negative Zone

Market breadth is favorable for the bulls due to gains in the Small-Cap and Mid-Cap indices.


Stock In NEWS

- Max India sells 26% in Max Healthcare Institute to SA based Life Healthcare for Rs 516.5 crore (CMP Rs 177, M Cap Rs 4564 crore)

- Amtek India board to consider bonus issue of shares

- Bosch strikes enters 14th day, company says ready for talks

- Sintex founders to up stake by 4.78% to 40%



Indices

SENSEX 16732.52 196.05 (1.19%)
NIFTY 5031.05 56.70 (1.14%)
CNX Midcap 7049.40 51.65 (0.74%)

Morning Bell!!!!....NSE Nifty crossing 5,000 for the first time in October.

The key Indian equity indices have advanced in early morning trade, extending the previous session's strong rally, with the NSE Nifty crossing 5,000 for the first time in October. The BSE Sensex surpassed 16,700 mark.


With this, the Indian markets are now up for a third straight day, and the Nifty is very close to rising above its 50-day moving average (DMA) of 5043.
Both, the Sensex and the Nifty are up nearly 1% each. All the sectoral indices on the BSE are trading in the positive zone. Metals, Banking, Realty, Capital Goods and Consumer
Durables have gained 1-1.5%. Power and Auto indices are up 1% apiece.


DLF, ICICI Bank, HDFC Bank,Tata Power, Bajaj Auto, Reliance Infra, Hindalco Inds,Bharti Airtel,Sterlite Inds,SBI, Tata Steel,L&T were among the notable leaders in the Sensex and the Nifty.


Infosys, ACC, ONGC, BPCL were among the notable losers in the Sensex and the Nifty.


Market breadth is favorable with the Small-Cap and Mid-Cap indices also joining the party for the second successive session. The India VIX is down over 5% at 28.39 as against the previous close of 30.03.


Stock In NEWS
- Unitech to move CLB against JV partner Telenor citing gross mismanagement by the company
- RIL to ink deal with UTV Software to acquire content for its telecom operations
- USA based ADM may buy four plants of KS Oils
- Coal India union claims, company to incur Rs 138 crore loss & production loss of 13 lakh tonnes due to strike
- UB Holdings to raise its borrowing limit to Rs 3500 crore
- SBI slashes rights issue size to Rs 5000 crore, issue likely by December
- CAG has raised fresh concerns about costs claimed by RIL for its D6 block
- UTV to buy 30% more stake in India Games for Rs 94.56 crore


Indices

SENSEX 16748.63 191.40 (1.16%)

NIFTY 5035.80 56.20 (1.13%)

CNX Midcap 7070.95 84.05 (1.2%)

Morning Bell !!...stock indices are trading marginally higher in early morning trade

The key Indian stock indices are trading marginally higher in early morning trade, with the BSE Sensex and the NSE Nifty logging modest gains on the back of some strength in the IT pack. Overall, the undertone is cautious due to mixed global cues and anxiety ahead of the latest quarterly earnings.

Shares of Infosys have gained as investors brace for its Q2 results on October 12.
Reliance Industries is also trading with a positive bias following a 'Buy' call by a local brokerage house.

Tata Motors, Coal India, Cipla and Sterlite Industries are among the other notable gainers.

RIL, Infosys, BHEL, Wipro, ONGC, DLF, HDFC,Cipla, Tata Motors, Coal India, were among the notable leaders in the Sensex and the Nifty.

ICICI Bank, Maruti Suzuki,Bharti Airtel,Sun Pharma, SBI, Bajaj Auto, RCOM, RPower, Tata Power, HUL, HEROMOTOCO,ITC, were among the notable losers in the Sensex and the Nifty.

Maruti Suzuki India shares are under pressure after the company took stringent action against some of the agitating workers at it's Manesar factory.

Sun TV stock is also down after the CBI raided the Chennai premises of Dayanidhi Maran in connection with the 2G spectrum scam. Sun TV is among the three companies named in the FIR by the CBI, according to reports

Stock In NEWS
- Coal India to replace Reliance Capital in Nifty from today
- Defence ministry gives clean chit to Mazagon for JV with Pipavav Defence & Offshore
- Rakesh Jhunjhunwala buys 14.04 lakh Lupin shares in last 3 months, stake now at 3%
- DLF appeal against CCI order likely in tribunal on Monday
- Shipping Corp calls off plans to buy new ships, as company to slowdown on ship purchases on low freight rates & rising costs
- Starbucks set for café JV with Tatas; to expand alliance with Tatas into full fledged retail play
- Unity Infra bags road project worth Rs 135.77 crore


SENSEX 16291.61 59.07 (0.36%)

NIFTY 4898.85 10.80 (0.22%)

CNX Midcap 6910.85 16.70 (0.24%)