Money Apr 4, 2012
The markets closed in red today with the Sensex, the barometer of the Indian economy, having lost 111 points to 17,486 while the Nifty lost 35.6 points to 5322. The fall in markets could be attributed to weak global markets. Global markets have been falling since yesterday after the US Federal Reserve meeting for March indicated that hopes for US quantitative easing three had waned. European markets like France's CAC and Britain's FTSE tanked over 1% while Germany's DAX lost 1.8%
Essar Oil has slumped 5 percent to Rs 57 per share after the Supreme Court dismissed the company's petition in the sales tax case. It is required to pay Rs 6,300 crore including penalty to the Gujarat govt.
Among the 30 Sensex scrips, 23 scrips ended in red while seven advanced. Of this, BHEL was the top gainer with returns of 3.7 percent. The rise could be attributed to the fact that the government deferred its FPO plans.
Hindalco, SBI, Maruti Suzuki and Hero Moto Corp were also up marginally. ICICI Bank lost 1.89 percent.
In Nifty, 757 stocks declined, 722 advanced while 78 remained the same.
Some of the top gainers today were the scrip of Hindustan Dorr Oliver (19.9 percent), Spanco (14.54 percent, Scheinder (11 percent) and KFA (10.42 percent).(14.54 percent, Scheinder (11 percent) and KFA (10.42 percent) while the losers include scrips like Unitech (-3.64 percent), Jindal Steel (3.15 percent), GMR Infra (3 percent).
KFA asked to clear dues asap, stock gains 11%!
2:30 pm - Kingfisher has shot up by 10 percent to Rs 18.35 per share on the stock markets. According to Reuters, tax authorities have asked debt-laden Kingfisher Airlines to clear service tax dues of 600 million rupees at the earliest.
Kotak Mahindra Bank was in news after the RBI asked the bank's promoters to bring down their stake to 10 percent from the current 45 percent by 2016. This is in line with the existing bank license guidelines, which say that no entity can hold more than 10% in a private sector bank. The stock has fallen one percent to Rs 551 per share.
Sensex continues to trade in the red as it has lost 127 points to 17472 while the Nifty is off 40 points to 5318. Of the 30 Sensex scrips - six scrips - BHEL (3.14 percent), Hindalco (0.8 percent), Maruti Suzuki (0.53 percent), ONGC (0.5 percent), TCS ( 0.17 percent) are in positive territory
Jindal Steel, Gail and ICICI Bank have lost more then two percent each.
In the Nifty, 822 stocks have declined, 624 stocks have gained while 93 are the same.
Some of the top gainers include the stocks of Pantaloon (6.7 percent), India Cements (4.78 percent), MRF (3.45 percent), IVRCL (3.39 percent).
Losers included Essar Oil (-4.94 percent), Unitech (-3.48 percent), JP Associates (-3.45 percent)
1:30 pmThe stock of Essar Oil has slumped 5 percent to Rs 57 per share after the Supreme Court dismissed the company's petition in the sales tax case. It is required to pay Rs 6,300 crore including penalty to the Gujarat govt.
Markets continue to remain in red as the Sensex has fallen by 131 points to 17465 while the Nifty is down 48 points to 5312 . All sectoral indices were in the red with the exception of IT and the Power index. Power stocks gained on the bourses after the government directed Coal India to sign fuel supply agreement (FSAs) with power companies.
Meanwhile, Hexaware , Graphite India and Nesco can give good returns, over 25 percent, in one-year, Bhavin Shah, chief executive officer of Equirus Securities told CNBC-TV18 today.
Coal India stock has fallen almost a percent to Rs 339 per share.
Specific IT stocks gained higher because of a weak rupee. Wipro gained 0.27 percent while TCS rose by 0.17 percent.
Kotak Mahindra was in news after the promoters were asked to bring down their stake The stock has fallen by 1.15 percent to Rs 553 per share.
IVRCL is up 2.23 percent after Essel group acquired 55 lk shares.
Court decision blow for Lanco Infra, stock falls 2.9%
Lanco Infra is down 3 percent after the AP high court said that it needs to settle issues with the Wakf board.
Some of the more actively traded stocks include BHEL (3.12 percent), SBI (-1.1 percent), ICICI Bank (-2.7 percent), Pantaloon (4 percent).
Suzlon falls 1.8% as FCCBs' due date approaches
12:30 L&T is in news after the company said in an announcement to the BSE that it has acquired Thalest Ltd. The stock has fallen 1.3 percent to Rs 1343 per share.
Lanco Infra stock has fallen 2.6 percent after the Andhra Pradesh High Court ruling that the land being used by the company to build a mega residential-cum-commercial project belongs to the Wakf Board, according to DNA.
Suzlon Energy is in news today as the company has said that it plans to sell assets for approximately $ 40 million (Rs 200 crore). The stock has fallen by 1.8 percent to Rs 25.5 per share. The asset sale will help the company pay off its FCCB which are due in June (apprx $246 million is due on 12 June) and the balance in October.
Maruti is trading higher as the stock is up 1.8 percent to Rs1332 per share. Morgan Stanley has upgraded Maruti's target price to Rs 1599 per share.
The government's decision to defer the FPO plans has been a blessing for BHEL as the stock has gained 2.3 percent.
Mean while markets continue to be in negative terrain. The 30 share Sensex has lost 92 points to 17505 while the Nifty is down 35 points to 5315.
According to Sudarshan Sukhani of s2analytics.com, the current fall is not a cause of concern unless Nifty falls below 5300.
The European markets have opened in the red with all major indices falling. Investors need to keep a watch on two factors - Spain and second, outcome of ECB.
Essel ups stake in IVRCL; hostile takeover soon?
11:30 am -Essel Group has increased its stake in IVRCL to 12.27 percent from 10.19 percent, more than the promoters. It has acquired 55 lk shares in IVRCL during 2-3 April, reported CNBC TV 18. The company's CFO told the news channel that he was not aware of Essel Group's intentions.
IVRCL has soared 17 percent in the last one week after the Essel Group started increasing its stake in the company.
Educomp Solutions has gained 1.11 percent to Rs 204.8 per share. The company has bagged a project worth Rs 209 crore from the Government of Assam, it said in a press release to the BSE.
The markets continues its down ward trend. Sensex has fallen by 80 points to 17516 while Nifty is down 27 points to 5331.
In Nifty, 791 stocks have declined, 598 have gained while 87 are the same.
While power stocks moved up on the government directing Coal India (-0.47 percent) to sign the fuel supply agreement. Sudarshan Sukhani of s2analytics.com says that Coal India is one of the best stocks to be in. "Coal India - if one is willing to hold for a year or two years will make new highs, lifetime highs, it will cross Rs 400 and go higher, he told CNBC TV 18.
He further added that Adani Power (3.4 percent) is in a downtrend, it's one of the worst performing stocks and has a terrible chart, I would suggest one should get out of Adani Power and go into some other sector. One should simply abandon the power sector also. If one wants to switch within power then should go to Tata Power and ideally one should go to banks.
Power stocks gain on Coal India's woes
10:30Power stocks rose across the board after the government directed Coal India to sign fuel supply agreement (FSAs) with power companies . Adani Power (3.6 percent ) and Tata Power (2.4 percent) were some of the biggest gainers while Coal India dipped 0.35 percent.
Suzlon Energy stock has fallen by a marginal 0.58 percent to Rs 25.5 per share. In a press release to BSE, the company has announced that it has planned the sale of a block of wind assets across India with a majority of the assets located in the state of Tamil Nadu.
Suzlon plans to sell the assets for approximately $ 40 million (Rs 200 crore). Suzlon's FCCB are due for repayment in June and this caused significant concern amongst investors as the company's financial performance is not up to the mark. It has to pay almost $ 559 million dollars in the next seven months.
Its CFO, Robin Banerjee, quit the company last week. Suzlon's losses had increased to Rs301 crore in the December quarter against a loss of Rs 253 crore last year ago quarter.
Essel Group has increased its stake in IVRCL to 12.27 percent from 10.19 percent. It has acquired 55 lk shares in IVRCL duirng 2-3 April, reported CNBC TV 18.
Pantaloon retail continues to trade higher as the stock is up 4.46 percent today. The management had said yesterday that they plan to reduce the company's debt by Rs 5,000 crore.
Mean while the broader market, the Sensex continues to trade lower by 57 points to 17540 and the Nifty is down 24.35 points to 5334. This is mostly due to weak global sentiment like weak US economic data, etc. Among the 30-Sensex scrips, nine are in green while the rest 21 have declined. Gail (-2.63 percent), Jindal Steel (-1.8 percent) and ICICI Bank (-1.65 percent) are some of the biggest losers while BHEL (2.29 percent), Tata Power (2.37 percent) and Maruti Suzuki (1.72 percent) have gained.
In Nifty, there are currently 635 companies have advanced, 662 have declined while 85 are the same.
However, this does not mean that one cannot enter the markets. In the background of weak global markets, Sudarshan Sukhani of s2analytics.com says that he would look for an opportunity to go short. "We will take a short position and ride it, if it goes down. We will also be prepared for an intraday reversal on the long side," he advises.
He has recommended buying Asian Paints, Hexaware and has a sell call on TVS Motors, Opto Circuits and Bharat Forge.
Sensex dips after 3-day rally, CIL biggest loser
The markets open down about half a percent after a three-day winning streak, with the Nifty hovering just below the 5300 level, while the Sensex is down about 80 points at 17520 levels, tracking weak global cues. No hope for any quantitative easing in the near term for US, weak US economic data, and Spanish deficit concerns and unemployment data dampened sentiment globally.
The biggest loser today is Coal India, down 2.5 percent as thegovernment issued a presidential decree to force Coal India to guarantee long-term fuel supply to private power firms. The government used its discretionary authority to trump independent directors who resisted pressure from the Prime Minister's Office and said such pacts would harm the company. But Power companies have reason to cheer and reacting to this FSA stocks Tata Power and Reliance Power are up around 2 percent each
Meanwhile, the UK-based The Children's Investment Fund is not willing to back down from its international arbitration proceeding against the government of India despite the FSA setback. TCI has alleged that Coal India is subsidising Coal to private companies, which is not in public interest. It even said that CIL is losing around $20 billion every day by selling subsidised coal.
Public sector undertaking SAIL is also down 2 percent today due to a negative brokerage report.The PSU on Tuesday paid Rs.425.36 crore as interim dividend to the government for its 85.82 percent percent holding in the firm.
Meanwhile corporate defaults have hit a ten year high with textiles, steel and construction & engineering sectors accounting for a quarter of the 180 cases, said rating agency Crisil yesterday.
DGCA is still working on final Kingfisher Airlines report. DGCA is giving daily updates to Aviation Ministry on KFA. The stock is up 3.30 percent at Rs 17.20 today.
Cairn India has notified second discovery in KG-ONN in KG basin. It has announced an oil discovery in its onshore block in the Krishna-Godavari basin where it had made a gas discovery about a year ago. The stock is up 1 percent at Rs 359.60.
BHEL has withdrawn follow-on offer due to volatile market due to which the stock has not reacted yet.
Tata Consultancy Services is down about half a percent at Rs 1172.60 after a US court in California has granted class action status to a lawsuit against India's largest information technology services firm, which according to two former employees allegedly refused to return tax refunds besides not paying promised wages.
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