Indian shares hit 7-mth closing high; airlines jump on FDI hopes

Wed Sep 12, 2012 4:57pm

BSE rises 0.82 pct, NSE gains 0.76 pct

* Potential airline measures cement reform hopes

• Fed meeting outcome on Thursday seen key

By Abhishek Vishnoi

MUMBAI, Sept 12 (Reuters) - India's BSE index rose for a sixth consecutive session to close at its highest since Feb. 23 on rising hopes for government reforms after the aviation minister signalled the country was moving to allow foreign direct investment into the sector.

Allowing foreign carriers to invest in the sector would help cement expectations for further government action, with investors also hopeful India will open up the multi-brand retail sector and raise fuel prices to lower its subsidy burden.

Gains in local shares on Wednesday also tracked a risk-on mood globally, after Germany's top court backed the legality of the euro zone bailout funds, although with conditions.

Investors are also hopeful the Federal Reserve will announce new U.S. asset purchases when it concludes its two-day meeting on Thursday, although some analysts warned of the dangers of relying on liquidity that is driven by global risk factors.

"The path is laid for FDI in aviation to go through,"said Ambareesh Baliga, chief operating officer at Way2Wealth Securities.

"International cues such as German court ruling are triggers which will take the market up for a while. But markets cannot sustain those higher levels unless you have a fundamental domestic reason to keep it up," Baliga added.

India's benchmark BSE index rose 0.82 percent to end at 18,000.03 points, just above the psychologically key level of 18,000 points.

The 50-share NSE index rose 0.76 percent to mark its highest close since March 14.

Data on Wednesday showing India's industrial output rose 0.1 percent in July, just below expectations for a 0.3 percent increase, had little impact in markets.

Instead, investors cheered comments from India's civil aviation minister Ajit Singh saying he had talked to most of the government's political allies on opening up the sector, raising hopes action could be near.

Policy reforms are seen key for a country facing ratings downgrades into sub-investment grade.

HSBC downgraded Indian stocks to "underweight" from "neutral" on Wednesday, citing the government's lack of progress in fiscal or structural reforms as a key factor.

AIRLINES SURGE

SpiceJet Ltd gained 7.12 percent, its biggest percentage gain since Aug. 7.

Under current rules, foreign airlines are barred from buying stakes in domestic carriers, although foreign investors are allowed to hold a cumulative 49 percent.

Kingfisher Airlines, which has been reeling under heavy debts, advanced 8 percent, while Jet Airways rose 4.85 percent.

Shares in Tata Motors gained 5.38 percent, marking a sixth day of gains on anticipation of a boost in sales when the auto maker releases a fourth-generation Range Rover in October.

Shares in Gujarat State Petronet Ltd gained 3.8 percent, after Petroleum & Natural Gas Regulatory Board (PNGRB) cuts tariffs to transport gas via high pressure networks in the state of Gujarat by less than expected.

Apollo Tyres jumped 6.46 percent to 99.65 rupees, after Bank of America-Merrill Lynch raised its target price to 135 rupees, predicting profit margins would continue to improve on the back of a better sales mix and pricing discipline, among other factors.

However, shares in Reliance Mediaworks dropped 2.6 percent on worries about its loan exposure after Digital Domain Media Group Inc filed for bankruptcy protection. Shares in the Indian unit of Siemens fell 2.7 percent after the German company sold 1.1 pct of its stake via 8 block deals.

Siemens had been looking to sell about a 1.2 percent stake in a deal meant to raise up to $50 million, according to a term sheet seen by Reuters on Tuesday. For more stocks on the move, double click

FACTORS TO WATCH

Euro rally after German court verdict

* Oil gains on euro zone bailout, Fed hopes

* Euro bailout fund approval boosts global stocks

* Foreign institutional investor flows

* For closing rates of Indian ADRs

ASIA-PACIFIC STOCK MARKETS:

Pan-Asia........ Japan....... S.Korea... S.E. Asia....... Hong Kong... Taiwan.... Australia/NZ.... India....... China.....

OTHER MARKETS: Wall Street .... Gold ....... Currency.. Eurostocks..... Oil ........ JP bonds... ADR Report ..... LME metals. US bonds.. Stocks News US.. Stocks News Europe

DIARIES & DATA: Indian Data Watch Asia earnings diary U.S. earnings diary European diary Indian diary Wall Street Week Ahead Eurostocks Week Ahead

TOP NEWS: For top Asian company news, double click on: U.S. company news European company news Forex news Global Economy news Technology news Telecoms news Media news Banking news Politics/General Asia Macro

(Additional reporting by Manoj Dharra)

Copyright in.reuters

Market Outlook and Nifty on Monday

Indian Share Market Review | Market closed today : The BSE Sensex closed at 17,683.73 up 337 points higher on Friday tracking a rally in global shares, led by gains in blue-chip shares such as Reliance Industries(RELI.NS) that gained after CLSA raised its target price.

Banks shares also gained on hopes the Reseerve Bank of India (RBI) may cut rates on September 17 if the government announces reform measures next week.

The BSE index rose 1.95 percent. The 50-share NSE index ended up 1.98 percent.

Indian stocks opened gap-up tracking the global rally and the momentum stayed through the session.

High beta stocks, such as metals and realty, benefitted the most from today's rally. Commodity stocks gained as the liquidity push is expected to drive prices up. Capital goods stocks also saw strong buying interest and outperformed all other sectoral indices on the BSE.

Realty major DLF was the top Nifty gainer, rising 5.6 per cent. Steel maker Tata Steel advanced 5.6 per cent. Private lender ICICI Bank, commercial vehicles manufacturer Tata Motors, cement and infra major Jaiprakash Associates, and India's biggest engineering and construction firm L&T closed with 4-5 per cent gains.

Oil refiner BPCL was the only stock to close lower on the Nifty-50. Shares in oil marketing firms witnessed selling pressure after Petroleum Minister S. Jaipal Reddy said there was no immediate plan to increase fuel prices. The announcement left investors disappointed, who were expecting a price hike as early as today. BPCL declined 0.63 per cent.

The market breadth was strong with 75 per cent stocks rising on the broader BSE 500 index.

Analysts were mixed in their outlook, some expecting markets to go up, while others suggesting profit booking.

"Markets are likely to go up from here on the back of liquidity... There is no improvement in fundamentals, but liquidity can do crazy things," Devang Mehta, vice president (equity sales) Anand Rathi told NDTV Profit.

Source -- NDTC.Profit

Nifty Levels for Monday 10 September :

Pivot : 5432 , 

Support-1 : 5148.5 , Support-2 : 4954.9 , Support-3 : 4671.4

Resistance-1 : 5625.6 , Resistance-2 : 5909.1 , Resistance-3 : 6102.7

Tech Mahindra acquires Hutchinson : Market Outlook

Tech Mahindra Acquires Hutchinson Global Services

Tech Mahindra Limited, a leading provider of solutions and services to the telecommunications industry, today on tuesday 4 Sep 2012, announced the acquisition of 100% stake in Hutchison Global Services Private Limited for US $ 87.1 m, payable upfront. 

Hutchison Global Services provides services to the clients of Hutchison's mobile firm in the UK, Ireland and Australia, the statement said.

As part of the deal, the clients of Hutchison Global have committed to procure services worth USD 845 million over a five-year period, said Tech Mahindra, a unit of India's Mahindra & Mahindra Ltd

Hutchison Global Services has about 12,000 employees operating out of five facilities in India.

British outsourcing group Serco was also interested in buying Hutchison Global Services, which services Hutchison’s mobile firm Three in the UK and Ireland as well as Vodafone in Australia.
Source : techmahindra.com

Indian Share Market Trend and Outlook Today

Securities in Ban For Trade Date 30-August-2012

1 COREEDUTEC

2 MCDOWELL-N

3 MTNL

4 ONMOBILE

INDIAN SHARE MARKET NEWS TODAY :-

• The Authority for Advance Ruling has ruled that the USD 125 million-class action suit settlement done by Mahindra Satyam (formerly Satyam Computer Services Limited ) is taxable.
• SKS Microfinance has allotted 44.5 lakh shares on preferential basis to Kumaon Investment Holdings. As per the details of the acquisition, Kumaon Investment Holdings will acquire 44.5 lakh shares carrying voting rights equivalent to 4.11 per cent, SKS said.
• Fitch downgraded Tulip Telecom from junk to default status following its failure to redeem its $97 million, or Rs 533.5 crore, outstanding FCCBs.
• Debt overhang coupled with the inability to raise equity has forced Orchid Pharma to sell its Penicillin and Penem active pharma ingredient (API), including its plant in Aurangabad, to US-based Hospira for around $200 million (Rs 1200 crore).
• New Delhi India has approved a Rs 23000 crore package for spurring production of pure electric and hybrid vehicles of all types.
• Tech Mahindra  block deal - CNBC-TV18 Exclusive BT to sell 5.6-8.4% stake worth $100 m in Tech Mahindra Pricing to be Rs.775-790/sh, 5-7% discount to CMP BT has option to upsize block deal to $150m
• JPMorgan, Credit Suisse bankers to the deal Post stake sale, BT stake to be between 14.73-17.54%
• ISARC partners with Vijaya Bank  for resolution of NPA CNBC-TV18 Alert - ISARC is India SME Asset Reconstruction Company Ltd
• DLF  Promoter cuts stake, sells 34.5 lakh shares for Rs 70 Cr Alert Post transaction holding down from 1.55% to 1.34% Redington  to hive off its supply chain business into a separate entity FE ONGC Videsh in talks to buy shale gas assets in US & Canada - PTI
• Alembic Pharma  major part of the mfg ops at Halol, Vadodara restored Ricoh India  to seek shareholders nod for delisting Aarti Industries  board meets to consider demerger of the
• manufacturing business
• Gati  planning to rope in a strategic partner for its shipping division - DNA
• Jaypee Infra  loses Rs 1100 cr road infra project in UP as new govt has shelved land for development model FE
• Bain, KKR vie for 30% stake in Lanco's power projects - BS

Source Moneycontrol

Indian Share Market Trend - NSE|BSE

Share intraday tips :

Buy Maruti Suzuki India Ltd below 1180.00, target 1192.00 for Intraday

Buy Grasim Industries AUG Futures in the range of 3040-3045

Buy Housing Development & Infrastructure Ltd below 74.00, target 75.20 for Intraday

Nifty Breaks its Crucial Support :

Today on Tuesday 28 August, BSE Sensex and Nifty drifted further lower amid increased volatility. Indian Share Markets are expected to be choppy ahead of the derivatives expiry later this week.

At 10.40 a.m., the Sensex traded 25 points or 0.14 per cent lower at 17,653 while the broader Nifty index was down 11 points to 5,339. The rupee, too, traded lower against the dollar at 55.77.

Other then this Metal stocks saw the deepest cut, falling 1.8 per cent. Metals are high beta stocks and tend to fall more than the benchmark indices. 

Trading Strategy and Market Outlook

Indian Share Market falls down with some stocks like "Bharti Airtel" showing 4- year low. Almost every sector closed negative.

Why Bharti Airtel shares have hit a 4-year low?

Following are the answers for the same :-

Bharti Airtel fell as much as 3.44 per cent to its lowest intraday level since October 2008 today. 

1) Credit Suisse has become the latest brokerage to downgrade Bharti Airtel. 

2) On Tuesday, Morgan Stanley had downgraded Bharti Airtel to "equal-weight" from "overweight" and cut its target price by nearly 25 per cent to Rs 280. 

3) Pressure on profits : Intense competition has forced the carrier to pare some call prices and spend more on networks and marketing in an effort to hold market share, squeezing margins.

4) African business yet to turn around

5) High debt continues to adversely affect the company's performance

More Details - you can get from profit.ndtv.com

Reliance Ind Shares Risen Up : 5 Month High

Reliance Industries shares were among the top gainers on the Nifty index Thursday as a report by global brokerage Goldman Sachs said it can potentially become a $100 billion stock in four years. Reliance, the most valuable Indian firm in terms of market capitalisation, is currently valued at around $47 billion.

The stock traded 2.6 per cent higher at Rs 820.40 on the NSE to hit a 5-month high.

The BSE Sensex and the Nifty index bounced back from the day's low on the back of the outperformance in the stock.

Goldman said Reliance needs to get government approvals on investments and gas prices, restrict its focus to core businesses, and return some of its surplus cash in the form of dividends or buybacks, among other measures.

Reliance's underperformance over the last 18 months has cast a shadow over Indian equity markets. That's because the stock carries a substantial weightage on both the Sensex and Nifty indices. The stock, once a favourite with foreign funds, has seen a slump in investor interest as profits shrunk amid a slowdown in its core energy business and recent forays into consumer-focused segments such as telecom and retail have yet to garner profits.

SOURCE : Profit.ndtv.com

Indian Share Market Trend : BSE

BSE may list shares in first half of 2013
One of the country’s premier stock exchanges, Bombay Stock Exchange, has set up a working committee to process its proposed initial public offering (IPO).

According to Ashishkumar Chauhan, Interim CEO of the "cash-rich" Exchange, said the committee is in the process of preparing a red herring prospectus and fine tuning other formalities. “The company may get listed in the first or second quarter of calendar 2013,” he said.

According to him, the idea of IPO is to give an exit route for its existing investors, rather than mobilising funds, and hence “it will be an offer for sale.”

At present, various broking houses hold over 43% stake in the company, followed by institutional investors with close to 40% and the remaining stake is held by some retail investors.

Under the current regulation, BSE needs to dilute up to 25% stake, and the committee will work out an elaborate plan on how to go about this, said Chauhan.

On BSE’s efforts to attract QFIs (qualified foreign investors), he said the exchange encourages and facilitates setting up of offices abroad by broking companies. BSE is the first Indian stock exchange to ring in the first QFI transaction (by a US-based investor) in June. One of its broking houses is now setting up an office in Dubai and is likely to go on stream by September this year.

Talking about BSE’s competitiveness in terms of transaction cost in the futures and options segment, Chauhan said the exchange charges just Rs 50 for every Rs 1 crore transacted in Options. This results in option trading cost on BSE being 85% lower than other exchanges. It does not charge any transaction cost for futures.

Realiance Look Cheap : Market Updates

We saw a big spike up in RIL yesterday, there is no clear cut explanation or something which can be given as a reason for the same, but i think the combination of factors made that move possible. One was the KG basin talk. Secondly, the refining margins like the product margins have also moved up sharply over the last few weeks. So, some analysts are becoming more bullish on refining margins for this quarter.

Overall, the stock continues to be cheap. However, I think the triggers are still lacking in terms of creating a longer term bigger upmove because the production in KG basin is still falling. So, I think it’s a cheap stock. It will keep on having its rallies in between, but there doesn’t seem to be any big upmove coming through, unless and until the telecom story starts unfolding.

By - Prabhudas Lilladher

Free Share Tips : Indian Share Market

Today the Indian Share Market opened on a very weak and negative basis. At 9:28am (IST), the BSE Sensex was at 17,264, up 28 points over the previous close. It had earlier touched a day’s high of 17,264 and day's low of 17,200. It opened at 17,244.
The NSE Nifty was quoting at 5,236 up 7  point sover the previous close. It had earlier touched a day’s high of 5,236 and a day’s low of 5214. It had opened at 5220.
Indian Shares to Trade in Today 1 August :-
SBI: Buy with a target of 2200 and a stop loss of 1929.4.
Cipla: Buy with a target of 360 and a stop loss of 328.4.
ITC: Sell with a target of 240 and an intraday stop loss of 261.6. 
Asian Paints: Sell with a target of 3400 and a stop loss of 3717.

Nifty Outlook : Sensex updates

Sensex gains most in 1 month; Nifty at 5200

The BSE benchmark ended above the key 17,000 mark on the back of a global rally in equities. The Sensex soared 304 points or 1.8 per cent, its biggest rally in over one month, while the broader Nifty index advanced 100 points to 5,199.80.

Markets ended near the day's high, signalling further bullishness ahead. Global cues helped sentiments today. Asian stocks closed higher and European markets also traded with strong gains.

Global stocks started rallying ever since the ECB president resolved to save the Eurozone last Thursday. Analysts also expect the US Federal Reserve to announce monetary easing action later this week after US GDP grew at 1.5 per cent in Q2, the weakest since the third quarter of 2011.

Domestically, the Reserve Bank will announce its monetary policy on Tuesday. Economists expect the central bank to hold rates because of high inflation.

"The markets are ending near the day's high and that's a significant indication. For the short term, I am not bearish on the markets even if the RBI doesn't do anything," Ashu Madan, COO of Religare Securities told NDTV Profit.

The Sensex gained 304 points to 17,144, while the Nifty advanced 100 points higher at 5,200.

Power, realty and capital goods shares were the top gainers, rising over 3 per cent. Banking stocks also rebounded sharply, gaining 2.7 per cent on the BSE.

On the Nifty index, infra major Jaiprakash Associates was the top gainer, rising 5.7 per cent. Reliance Infra gained 5.4 per cent. Oil and gas major Cairn India and infra lender IDFC were the other big gainers, rising 4-5 per cent.

Shares in state-run lenders like SBI rebounded after some PSU lenders like Oriental Bank of Commerce reported better than expected earnings today. Bank of Baroda met Street estimates. These lenders did not report a sharp rise in asset quality, like PNB and Central Bank did last Friday.

State Bank of India gained 4.7 per cent, while Bank of Baroda rose 3.5 per cent.

ICICI Bank, India's biggest private lender, was among the top Nifty gainers, rising 3.9 per cent. ICICI Bank had reported strong set of results for the June quarter on Friday. The restructured loans had also declined. Other private sector lenders like Axis Bank also saw strong gains.

"PSU banks have been disappointing. Private sector banks have been on a positive note on fee income and select credit growth. The commentary of ICICI Bank says they are here to maintain the net interest margin and growth in business. Private sector banks give confidence vis-a-vis PSU banks," Deven Choksey, MD of KR Choksey Securities told NDTV Profit.

On the Nifty, only 4 of the 50 stocks closed lower. Ambuja Cements was the top loser, down 1.3 per cent. IT major Wipro, which expects to grow at the lower end of analysts' expectations in the September quarter, shed 0.5 per cent. State run oil explorer ONGC and IT major HCL Tech also saw minor losses.

Among other stocks, SpiceJet soared 22 per cent, after the domestic carrier swung into profit after five straight quarterly losses. It was also the top traded stock on the BSE 500 index.

The market breadth continued to remain strong with nearly 80 per cent shares rising on the broader BSE 500 index.

SOURCE : http://profit.ndtv.com

Rupee Update : Share Market Trading

Rupee opens higher at 55.49/$ on strong Asian cues

The rupee rose today in opening trade on Friday 27 July 2012, and its continuously increasing and is recommended and seems to be extending gains for a second successive session, the Asian stocks rose and the euro steadied on hopes are the reasons for such recommendations. Also the European Central Bank will take all steps needed to protect the euro zone.

At 9:03 a.m., the rupee was at 55.49/51 to the dollar versus its last close of 55.52/53.

Now lets see and hope to gain more levels in the noon and evening trading sessions.

Infosys Latest Updates and News

Why Infosys shares have hit 52-week low

Shares in Infosys, India's second biggest IT outsourcer, slumped to a 52-week low Wednesday. Infosys, which has the biggest weightage among IT stocks, made a new year-low at Rs 2,150 today.

Infosys, once the IT sector bellwether, has seen a steady decline in its share prices on the back of weak financial results and a slew of visa misuse cases in the US, its biggest market.

Shares in the company are down 22 per cent since the beginning of this year. In contrast, the Sensex has gained a little over 9 per cent in 2012. Infosys' performance is in stark contrast to TCS, whose shares are up 4 per cent this year. TCS is India's biggest IT outsourcer with net revenues in excess of $10 billion.

Infosys was considered to be the industry bellwether because of its ability to achieve and usually exceed dollar revenue forecasts. That kept analysts and investors happy. However, over the past few quarters, Infosys has been unable to keep pace with its forecast

From a company that exceeded forecast, Infosys went on to cut its forecast more than expected. It cut its FY13 sales outlook to 5 per cent, down from its April estimate of 8-10 per cent growth. The company has also stopped giving out quarterly guidance in view of the uncertain environment.

Not surprisingly, the company's shares have lost over 4 per cent since July 12, when the company delivered a below estimates outlook for FY13.

Investors have now started questioning the company's growth strategy. That's because Infosys has often cited weak macroeconomic environment and falling client confidence as the reasons behind its falling fortunes. However, other companies like TCS and HCL, India's number four software services exporter, seem to thrive in the same environment.

"It makes you wonder if they are operating in the same environment because the management view of the two companies are completely different," Ambareesh Baliga, COO at Way2Wealth Brokers had earlier told NDTV contrasting Infosys' performance with that of TCS.

HCL, incidentally, has surpassed Street estimates in the June quarter and its shares are up 6 per cent today. Earlier, TCS said it expects to beat the industry export revenue growth forecast of 11-14 per cent for this fiscal year set by trade body Nasscom.

SOURCE : profit.ndtv.com