MARKET AS ON 18/11/2013

Views on markets today

- It was lacklustre session of trading as investors remained on the sidelines ahead of derivatives expiry on Thursday. Benchmark indices moved in a narrow range for the major part of the day with bouts of volatility witnessed during the trading session.

The 30-share BSE Sensex index finished the day at 20,415 levels down 10 points from its previous close while NSE Nifty slipped by 2 points to close at 6,057 levels.

- Market remained volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month November to December and July-September GDP data on Friday.

The main losers on the Sensex today were Bharti Airtel, NTPC, SBI, Sesa Sterlite, Wipro and Cipla which were down between 1-1.7%. On the gaining side, Tata Motors, ITC, ONGC, Coal India, Dr. Reddy's labs and Tata Steel gained between 0.7-2%.

- Among the 13 BSE Sectoral Indices 7 sectors closed in positive while 6 sectors ended the day in negative. Top Gainers: BSE Consumer Durables up by 1.37%, BSE FMcG by 1.03% and BSE Auto by 0.97%. Top Losers: BSE Power down by 0.88%, BSE Realty by 0.77% and BSE IT by 0.66%.

Market breadth was negative at ~0.84 as investors sold large cap stocks. On provisional basis, FII's sold Rs 0.49bn worth of Indian equities and DII's sold Rs 0.58bn worth of equities.


Economic and Corporate Developments

- Planning Commission deputy chairman, Montek Singh Ahluwalia, on Wednesday said that the country's gross domestic product (GDP) will expand by over 6% in the next financial year, which will primarily be triggered by the policies of the new government.

Stating that he was expecting the second half of the current financial year to be better than the first half though there were no signs of a strong revival as yet, Ahluwalia said that the decline in the economy had bottomed out. According to him the current account deficit (CAD) would be significantly below 3% this financial year.

- The finance ministry, having lined up half a dozen companies to sell the government's stake in, is also planning to tweak the disinvestment strategy by reviving Specified Undertaking of Unit Trust of India (SUUTI) and launching public-sector exchange-traded funds (ETFs).


Buzzing Stocks

- Nestle India closed up 4.03% to Rs 5,449.85 on BSE after the stock entered the MSCI India index with effect from Tuesday, 26 November 2013.

- Siemens closed down 2.40% to Rs 595 on BSE, with the stock sliding on profit taking after recent rally triggered by firm's announcement that its order inflow rose 7% to Rs 10957.30 crore in FY 2013 over FY 2012.

- Sobha Developers closed down 4.15% to Rs 323 on BSE on profit booking after the stock jumped 8.69% in the preceding three trading sessions to Rs 337 on 26 November 2013, from a recent low of Rs 310.05 on 21 November 2013.

- LIC Housing Finance closed down 2.46% to Rs 202.15 on BSE after a block deal of 10.75 lakh shares was executed on the counter on BSE at Rs 200.75 per share in the afternoon.

- Eicher Motors closed up 3.89% to Rs 4,486.40 on BSE, extending Tuesday's 3.07% rise triggered by a foreign brokerage upgrading the stock to buy from underperform.

- DIC India closed up 3.05% to Rs 349.70 on BSE, with the stock extending recent steep rally triggered by the company's promoter proposing a voluntary delisting offer.

- Bharti Infratel closed down 0.91% to Rs 158.05 on BSE after a block deal of 3.83 lakh shares was executed on the counter on BSE at Rs 160 per share in the afternoon.

- United Spirits closed up 2.68% to Rs 2,650.35 on BSE after Diageo purchased 19.67 lakh additional shares of the company at Rs 2400 each on Tuesday, 26 November 2013.

- Bharat Heavy Electricals closed down 0.98% to Rs 146.40 on BSE, with the stock sliding on profit booking after 2-day 7.91% rally.

- Wockhardt closed down 8.87% to Rs 430.15 on BSE after the US drug regulator imposed an import alert on the company's Chikalthana plant in Maharashtra.

- Aban Offshore closed up 0.94% to Rs 376.10 on BSE, extending its two-day 24.2% rally triggered by hopes that the lifting of Western sanctions on Iran will improve oil exploration activity in the region.

- Westlife Development closed down 5% to Rs 389.70 on BSE after two block deals aggregating 9.21 lakh shares were executed in the counter on BSE at Rs 417.85 per share in the morning.

- Edelweiss Financial Services closed up 2.18% to Rs 25.80 on BSE after the company said its board has increased foreign institutional investors' investment limit in the equity share capital of the company to 28% from 24% earlier.

- Thermax closed up 1.14% to Rs 645 on BSE after the company said it received an order worth approximately Rs 269 crore from a leading petrochemical company.

- Voltas closed up 4.21% to Rs 99.05 on BSE after the company said it bagged three overseas project orders worth Rs 1000 crore in the Middle-East.

VIEW OF MARKET ON 27/11/2013

Views on markets today

- Markets ended lower because of profit taking as crude oil prices which had eased yesterday following the landmark Iran deal staged a recovery nullifying the benefits of a lower import bill. As India imports most of its crude oil requirement, a lower import bill will help the country trim its current account deficit and also contain inflation.

- Market will remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month November to December and July-September GDP data on Friday.

The 30-share Sensex ended down 180 points at 20,425 and the 50-share Nifty slipped 56 points at 6,059. The Sensex and Nifty touched an intra-day low of 20,391 mark and 6,04- levels, respectively.

The main losers on the Sensex were Bharti Airtel, ICICI Bank, Coal India, ITC, HDFC, GAIL, Tata Steel, Dr Reddy's Lab, Sun Pharma and Maruti Suzuki.

- Among the 13 BSE Sectoral Indices 3 sectors closed in positive while 10 sectors ended the day in negative. Top Gainers: BSE Auto up by 0.49%, BSE Power by 0.36% and BSE Capital Goods by 0.32%. Top Losers: BsE Bankex down by 1.52%, BSE PSU by 1.36% and BSE Oil & Gas by 1.23%.

Market breadth was negative at ~0.72 as investors sold large cap stocks. On provisional basis, FII's sold Rs 3.39bn worth of Indian equities and DII's sold Rs 3.57bn worth of equities.


Economic and Corporate Developments

- The economy may have continued its sluggish run during the quarter ended September 2013, with many economists predicting sub 5% growth for the fourth consecutive quarter. Data on gross domestic product (GDP) for the September quarter are slated to be released on Friday.

Various economists and analysts have pegged GDP growth during the September quarter at 4.5-4.8%.

- Tax rates for companies in India are among the highest in the world and the number of payments is also more than the global average, putting the country at a low 158th rank on the 'Paying Taxes 2014' list.

However, the time taken for tax payments is relatively less in India, which is rated ahead of China and Japan where it takes 31- hours and 330 hours, respectively, to comply with tax regulations, according to a World Bank and PwC report.


Buzzing Stocks

- Sun Pharmaceutical Industries closed down 1.25% to Rs 573.30 on BSE after the company's unit Taro Pharmaceutical announced the start of a tender offer to buy back up to $200 million of its ordinary shares.

- Aban Offshore closed up 3.50% to Rs 372.60 on BSE, extending Monday's 20% surge triggered by hopes that the lifting of Western sanctions on Iran will improve oil exploration activity in the region.

- DIC India hit an upper limit of 20% for the second consecutive day to close at Rs 339.35 on BSE, extending Monday's 20% spurt triggered by the company's promoter proposing a voluntary delisting offer.

- IDBI Bank closed down 1.62% to Rs 63.75 on BSE after global ratings firm Standard & Poor's downgraded its rating on the bank to below investment grade citing expectations for weaker asset quality.

- United Spirits closed down 1.52% to Rs 2,581.05 on BSE after Diageo offered to sell a majority of the Whyte & Mackay whisky business due to competition concerns in the UK.

- Kalpataru Power Transmission closed down 0.76% to Rs 77.90 on BSE. The company touched an intraday high of Rs 83.40 but closed down on profit booking by the investors. The company in the morning announced that it has secured orders worth Rs 1007 crore.

- Six hospitality stocks rose by 1.02% to 5.29% on BSE after the central bank widened the definition of infrastructure lending to include hotels with project costing more than Rs 200 crores.

Indian Hotels Company (up 5.29%), Kamat Hotels (India) (up 4.03%), Hotel Leelaventure (up 3.79%), EIH (up 1.11%), Taj GVK Hotels & Resorts (up 1.02%) and Oriental Hotels (up 2.57%), edged higher.

- Four stocks exiting MSCI's global standard indices from today, 26 November 2013 fell by 4.06% to 7.67% on BSE.

Unitech (down 7.67%), Canara Bank (down 5.52%), Bank of India (down 4.84%) and Wockhardt (down 4.06%), edged lower.

- Shares of three public sector oil marketing companies fell by 2.28% to 6.33% on BSE as global crude oil prices traded mixed today, 26 November 2013, after trimming intraday losses on Monday, 25 November 2013.

BPCL (down 6.33%), HPCL (down 4.59%) and Indian Oil Corporation (down 2.28%), edged lower.

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VIEW OF MARKET AS ON 26/11/2013

Views on markets today

- Markets surged on Monday snapping a three-day losing streak, amid short covering at lower levels, as easing of global crude oil prices following a landmark deal between Iran and world powers would help India reduce its current account deficit and contain inflationary pressures.

On Sunday, US along with five other global powers, reached a landmark agreement with Iran on curbing some of its nuclear programmes in exchange for a limited relief on sanctions.

The 30-share Sensex ended up 38- points at 20,605 and the 50-share Nifty ended up 120 points at 6,115.

- Shares of eight offshore oil services providers rose by 2.60% to 18.33% on BSE on reports that the oil ministry plans to kick-start the tenth round of New Exploration and Licensing Policy in January 2014.

Aban Offshore (up 20.00%), Dolphin Offshore Enterprises India (up 17.31%), GOL Offshore (up 15.23%), Jindal Drilling Industries (up 10.57%), Global Offshore Services (up 7.36%), Deep Industries (up 6.48%), Shiv Vani Oil & Gas Exploration Services (up 4.98%) and sEaMEC (up 2.60%), edged higher.

- Among the 13 BSE Sectoral Indices 12 sectors closed in positive while 1 sector ended the day in negative. Top Gainers: BSE Capital Goods up by 3.82%, BSE Bankex by 3.63% and BSE Realty by 2.28%. Top Losers: BSE IT down by 3.80%

Market breadth was negative at ~1.41 as investors sold large cap stocks. On provisional basis, FII's bought Rs 8.38bn worth of Indian equities and DII's sold Rs 7.92bn worth of equities.


Economic and Corporate Developments

- Analytic firms have predicted India's economic growth in the wide range of 4.5-5.5% in the second quarter of 2013-14.

While Moody's Analytics pegged the Gross Domestic Product (GDP) in April-September period to grow at a sluggish 4.5%, Deutsche Bank pegged the growth at an 18-month high of 5.5%.

The research wing of Moody's Group said: "GDP growth in the second quarter cooled to its slowest pace in four years as production slowed across most parts of the economy".

In the quarter ended June, the GDP grew at a four-year low of 4.4% even as industries contracted 0.86% and the services expanded by 6.17%.

The official GDP numbers will be released on Friday this week by the Central Statistics Office.


Buzzing Stocks

- Shares of three state-run upstream oil and gas firms rose by 0.85% to 3.54% on BSE on anticipation that falling crude oil prices may reduce subsidy burden on these companies.

ONGC (up 3.70%), Oil India (up 1.44%) and GAIL (India) (up 1.20%), edged higher.

- Pfizer and Wyeth rose by 12.14% to 13.59% on BSE after the boards of Pfizer and Wyeth approved the proposed merger with a 7:10 equity swap ratio.

Wyeth (up 13.59% at Rs.924.80), and Pfizer (up 12.14% at Rs.1,605.30), edged higher.

- Valecha Engineering closed 5.53% up at Rs 36.25 on BSE after the company said it has won a Rs 176.29 crore contract from NHPC for civil work of a tunnel in Himachal Pradesh.

- NHPC closed 1.42% up at Rs 17.90 on BSE after the company said it will commence the buyback of shares from Friday, 29 November 2013.

- DIC India hit an upper circuit limit of 20% at Rs 282.80 on BSE after the company's promoter proposed a voluntary delisting offer.

- Cairn India closed 1.21% up at Rs 330.00 on BSE, extending Friday's 3.09% rise triggered by the company's plan to buyback equity shares.

- Tata Power closed 1.62% up at Rs 78.25 on BSE after the company signed memorandum of understanding with government of Vietnam to develop Long Phu 2 power project.

- Siemens closed 6.94% up at Rs 601.05 on BSE after net profit fell 43.5% to Rs 193.95 crore on 12.3% decline in net sales to Rs 11,145.24 crore in the year ended September 2013 over the year ended September 2012.

VIEW ON MARKET 22-11-2013

Views on market yesterday

- Markets slumped in late trades on Thursday amid selling pressure in heavyweights on fears that sooner-than-expected tapering by the US Fed will lead to lower inflows from foreign funds thereby reducing liquidity.

- The 30-share Sensex closed down 406 points at 20,229 and the 50-share Nifty was down 123 points at 5,999.

- SKS Microfinance closed 1.49% up at Rs 173.30 on BSE after the company said that the Reserve Bank of India has classified the company as non-banking financial company-micro finance institution with effect from 1- November 2013.

- All the 13 BSE Sectoral Indices closed in negative, as investors sold large cap stocks. Top Losers: BSE Bankex down by 2.49% and BSE Capital Goods by 2.37% and BSE Realty by 2.29%.

Market breadth was sharply negative at ~0.57 as investors sold large cap stocks. On provisional basis, FII's sold Rs 0.60bn worth of Indian equities and DII's sold Rs 6.50bn worth of equities.


Economic and Corporate Developments

- Narrowing current account deficit will not be enough to shield India from pressures tied to Fed tapering, said Fitch Ratings.

However, Fitch added that the spillover effects of the rupee's weakness have not significantly hurt India's creditworthiness and will therefore not trigger any ratings action at this point.

"(India's ratings) already incorporate both the sovereign's vulnerabilities and tolerance for volatility in global financial market conditions," Fitch said.

- Rating agency Fitch said consolidation is on the cards for the Indian telecom sector as the weaker and smaller telcos may either get acquired or will merge with each other to improve financial health.

"We believe that, in the long run, India can support only six profitable mobile telcos...The Indian telcos are waiting for the relaxation of M&A guidelines which we believe will be announced by the end of this year," Fitch Ratings said in a statement.

The agency said lack of clarity over the merger and acquisition (M&A) guidelines and, in particular, spectrum acquisitions have prevented any consolidation in India so far.

Fitch said only the top (three to four) operators make a profit, while the rest suffer EBITDA losses and have stretched balance sheets.


Buzzing Stocks

- Future Retail closed 8.06% down at Rs 73.00 on BSE after the National Stock Exchange said it would exclude Future Retail from its derivatives segment.

- Wyeth surged 5.95%, in the early trading, to Rs 823 and closing 2.65% down at Rs.797.35 on BSE, with the stock extending Wednesday's 20% rally triggered by the company and Pfizer announcing that the board of directors of the two companies will separately consider merger proposal.

- Sterling Biotech was locked at 20% upper circuit at Rs 8.89 on BSE after the company's bond holders approved a resolution for exchange and substitution of the existing bonds with the Zero Coupon Convertible Bonds due 2018.

- Birla Corporation closed 3.18% down at Rs 241.80 on BSE after two block deals aggregating 2.04 lakh shares were executed on BSE at 14:04 IST.

- ITC closed down by 2.59% at Rs 312.65 on BSE after hitting a two-and-a-half-month low in intraday on Thursday.

- Kirloskar Oil Engines closed 10.30% up at Rs 163.30 on BSE after three block deals aggregating 19.20 lakh shares were executed on BSE.

- IRB Infrastructure Developers closed 4.21% down at Rs 86.50 on BSE on profit booking after the stock rose 8.73% in the preceding four trading sessions to Rs 90.30 on 20 November 2013, from a recent low of Rs 83.05 on 13 November 2013.

- Just Dial closed 7.03% down at Rs 1,291.55 on BSE on profit booking after the stock surged 37.32% in the preceding four trading sessions to Rs 1,389.15 on 20 November 2013, from a recent low of Rs 1,011.65 on 13 November 2013.

- Zee Entertainment Enterprises closed 3.81% down at Rs 256.45 after a block deal of 2 lakh shares was executed on BSE at Rs 260.70 per share at 10:30 IST.

- Zensar Technologies closed 0.57% down at Rs 321.75 on BSE after the company said it has launched an end-to-end suite of multivendor support service offerings.

- Bombay Dyeing & Manufacturing Company jumped 3.75% to Rs 72 in the intraday, before closing the day at Rs.69.75 or 0.50% up on BSE after the Bombay High Court allowed the company to surrender to BMC and MHADA its land in Wadala in lieu of its land in Lower Parel.

- Jet Airways (India) rose 1.95%, in the early trade, to Rs 332.10 on BSE, extending Wednesday's 1.62% rise triggered by the company announcing closure of a Rs 2,069 crore deal for Etihad to pick up 24% equity in the Indian airline.

- Venus Remedies rose 2.35%, in the morning trade, to Rs 213 on BSE, with the stock extending Wednesday's 3.68% gains triggered by the company entering into generics market in the Gulf with marketing authorization for Meropenem from Saudi Food and Drug Authority. The stock closed 0.31% down at Rs. 207.45.

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