ECONOMY
>> Cold-rolled steel manufacturers, are contemplating an increase in price in the range of Rs 2,000-3,000 per tonne across the board.
>> The petroleum ministry, proposed that state-owned navratna oil majors IOC, BPCL and HPCL be allowed to set their own petrol and diesel prices in the current financial year.
>> India's finance ministry has asked SBI to consider combining its unlisted units with itself.
>> Maharashtra will be the first state to get six imported mega atomic plants of at least 1,600 MW each for its Jaitapur nuclear power project in Ratnagiri.
>> Forex reserves widened to $199.179-bln for the week ended Mar. 30 on the back of a rise worth $1.532-bln in foreign currency and assets.
>> After remaining static at 6.46% for three weeks in a row, inflation eased to 6.39% for the week ended Mar. 24 due to lower prices of food items and some manufactured products.
>> Lending a new twist to negotiations on the tri-nation gas pipeline, Islamabad has offered to sell Iranian gas to India at its border.
CORPORATE
>> Bharat Coking Coal (BCCL) decided to enter into a special purpose vehicle (SPV), with SAIL to develop a two million tonne underground coking coal mine at a total investment of Rs 5-bln.
>> Bilcare lost the patent case over the metallised film in the Delhi High Court.
>> NTPC offered Omani investors a stake in projects requiring a total investment of $3.8-bln in southern India.
>> Petronet LNG (PLL) is set to float a shipping subsidiary, to haul gas to its LNG terminals.
>> PVR Cinemas is considering, setting up 50-60 screens in 7-8 locations in eastern India within the next 5 years.
>> RIL is seeking international price for LPG, it sells to PSUs.
>> SBI has raised its benchmark primelending rate by 50 basis points to 12.75% per annum with effect from Monday.
>> SRF raised around Rs 5-bln from the sale of carbon credits in FY07.
>> Tata Motors expects to sell over 3,000 Fiat branded cars in India during the
current fiscal.
Precision View:
The first day of the last week saw the indices tank down on account of CRR rate hike. This fall was without volumes. Later, we saw a pull back rally with low volumes for the remaining days of the week. But the interesting part of this rally was that the Nifty futures were trading at a huge discount as and when the indices moved up.
For the last many weeks we have been in a broad range with 13,310 and 3,780 as major resistance levels and 12,415 and 3,577 as major support levels on the BSE Sensex and the NSE Nifty respectively. The same has been displayed in the chart shown below. Till the time we do not trade above or below these levels, a broad based move is ruled out and we expect the indices to remain range bound. The main trigger for further direction should be 13th April when the Tech giant - Infosys would announce its Q-4 results along with the guidance. Technically, all the supporting indicators and oscillators on the indices have displayed neutral signals on the daily charts.
Same is the case on the weekly charts.
There are some stock specific stories on the charts like JSW Steel, Tata Steel, Praj, Educomp Soln, IFCI which display enormous strength to outperform the markets.
With the quarterly results nearing, the increase in volatility should making things difficult for the investing community.
Advice – Stay away…
Showing posts with label Khandwala Securities. Show all posts
Showing posts with label Khandwala Securities. Show all posts
Monday, April 9, 2007
Thursday, April 5, 2007
Equity Snapshot 5th April , 07
ECONOMY
> The government will announce the much-awaited 3G-spectrum policy by the end of the month - a move that will pave the way for mobile operators to offer voice, video and data services to subscribers.
> The Indian government has an open mind on reviewing a levy imposed on cement in the budget but no decision has been taken, a finance ministry official said.
> Low and stable inflation is necessary to support India's economy, which is headed for a growth path of 8.0-8.5% in the coming years, a senior central bank official said.
> Mutual Fund (MF) industry grew nearly 41% in FY07 to Rs 3,263.285-bln as against Rs 2,310.454-bln in FY06.
> Pakistan offered to export cement to India, a move that may help lower the commodity's market price by at least Rs 20 per bag of 50 kg and bring relief to the government.
> India and Pakistan renewed their commitment to a controversial pipeline that will supply Iranian gas to their two countries and said they would pursue the project sincerely and seriously.
CORPORATE
> Fortis Healthcare has set a price band of Rs 92-110 per share for its proposed initial public offering (IPO).
> Godrej Properties is planning to enter the capital market this fiscal.
> Hindustan Copper (HCL), raised provisional prices of its products across the board by 12.57% for April.
> ICSA India bagged an order for a total contract value of Rs 231.7-mln.
> JSW Steel reported a 20% growth in crude steel production at 7,14,000 tonne during the final quarter for FY2007.
> Jupiter Bioscience plans to invest $5-mln to set up a unit in the United States.
> Reliance Inds and GAIL decided to lay the national gas grid jointly at an estimated investment of Rs 530-bln.
> The BoD of SAIL has given inprinciple approval for a Rs 112.6-bln ($2.6-bln) expansion plan.
> The Sherwin-Williams Co., based in Cleveland, Ohio, announced the acquisition of Mumbai-based Nitco Paints for an undisclosed amount.
> Whirlpool India earmarked an investment of Rs 1.56-bln for production and marketing purposes.
> The government will announce the much-awaited 3G-spectrum policy by the end of the month - a move that will pave the way for mobile operators to offer voice, video and data services to subscribers.
> The Indian government has an open mind on reviewing a levy imposed on cement in the budget but no decision has been taken, a finance ministry official said.
> Low and stable inflation is necessary to support India's economy, which is headed for a growth path of 8.0-8.5% in the coming years, a senior central bank official said.
> Mutual Fund (MF) industry grew nearly 41% in FY07 to Rs 3,263.285-bln as against Rs 2,310.454-bln in FY06.
> Pakistan offered to export cement to India, a move that may help lower the commodity's market price by at least Rs 20 per bag of 50 kg and bring relief to the government.
> India and Pakistan renewed their commitment to a controversial pipeline that will supply Iranian gas to their two countries and said they would pursue the project sincerely and seriously.
CORPORATE
> Fortis Healthcare has set a price band of Rs 92-110 per share for its proposed initial public offering (IPO).
> Godrej Properties is planning to enter the capital market this fiscal.
> Hindustan Copper (HCL), raised provisional prices of its products across the board by 12.57% for April.
> ICSA India bagged an order for a total contract value of Rs 231.7-mln.
> JSW Steel reported a 20% growth in crude steel production at 7,14,000 tonne during the final quarter for FY2007.
> Jupiter Bioscience plans to invest $5-mln to set up a unit in the United States.
> Reliance Inds and GAIL decided to lay the national gas grid jointly at an estimated investment of Rs 530-bln.
> The BoD of SAIL has given inprinciple approval for a Rs 112.6-bln ($2.6-bln) expansion plan.
> The Sherwin-Williams Co., based in Cleveland, Ohio, announced the acquisition of Mumbai-based Nitco Paints for an undisclosed amount.
> Whirlpool India earmarked an investment of Rs 1.56-bln for production and marketing purposes.
Tuesday, April 3, 2007
Equity Snapshot
ECONOMY NEWS
> India's trade deficit in Feb was $4.66-bln, higher than $2.49-bln a year earlier.
> Crude oil imports registered a negative growth of 1.18% and stood at $4.06-bln in Feb 2007 as compared to $4.10-bln in Feb 2006
> Exports increased 23.83% year-onyear in Feb to $9.70-bln while imports were up 30.10% to $14.36-bln. In the first 11 months of the current fiscal, exports grew 22.95% to cross the $100-bln-mark at $109.1-bln, and imports grew 30.59% to $164.98-bln.
> Steelmaking is in for a major boost as the government plans to make ‘valueaddition’
mandatory for getting iron ore mines.
> Faced with the spectre of input costs of raw materials like iron ore shooting
up by Rs 2,500 per tonne, major Indian steel makers are finalizing plans to hike steel prices within next.
> SEBI told several hedge funds wanting to invest in India, that they should agree to a lock-in period of two years as a cushion against sudden withdrawal under adverse
circumstances.
CORPORATE NEWS
> Bharti Airtel has lowered international tariffs by up to 11% for its mobile customers from April 1.
> GM India has sold 4,542 cars in March 2007 an increase of 12% when compared with 4,070 units sold in March 2006.
> Lanco Infratech won the bid for three construction projects worth Rs 1.02-
bln in Karnataka and Tamil Nadu.
> Maruti Udyog posted a strong domestic sales growth of 20.6% in 2006-07 at 6,35,629 units as against 5,27,038 units sold in FY06.
> Property developer Phoenix Mills Ltd. said its board approved the merger of Ashok Ruia Enterprises Pvt Ltd. with itself.
> Ranbaxy Lab. said it would conduct tests for a new compound to treat respiratory inflammation.
> Tata Motors reported a 28% increase in unit sales at 5,79,378 (incl. exports)
vehicles for the fiscal year 2006-07.
> Tata Steel has agreed to sell its cold rolling mill at Sisodra for Rs 670-mln to Theis Precision Steel India.
> TVS Motor Co. has closed FY07 with a 15% growth in motorcycle sales at 9,24,813 units (8,06,708 units in FY06).
> India's trade deficit in Feb was $4.66-bln, higher than $2.49-bln a year earlier.
> Crude oil imports registered a negative growth of 1.18% and stood at $4.06-bln in Feb 2007 as compared to $4.10-bln in Feb 2006
> Exports increased 23.83% year-onyear in Feb to $9.70-bln while imports were up 30.10% to $14.36-bln. In the first 11 months of the current fiscal, exports grew 22.95% to cross the $100-bln-mark at $109.1-bln, and imports grew 30.59% to $164.98-bln.
> Steelmaking is in for a major boost as the government plans to make ‘valueaddition’
mandatory for getting iron ore mines.
> Faced with the spectre of input costs of raw materials like iron ore shooting
up by Rs 2,500 per tonne, major Indian steel makers are finalizing plans to hike steel prices within next.
> SEBI told several hedge funds wanting to invest in India, that they should agree to a lock-in period of two years as a cushion against sudden withdrawal under adverse
circumstances.
CORPORATE NEWS
> Bharti Airtel has lowered international tariffs by up to 11% for its mobile customers from April 1.
> GM India has sold 4,542 cars in March 2007 an increase of 12% when compared with 4,070 units sold in March 2006.
> Lanco Infratech won the bid for three construction projects worth Rs 1.02-
bln in Karnataka and Tamil Nadu.
> Maruti Udyog posted a strong domestic sales growth of 20.6% in 2006-07 at 6,35,629 units as against 5,27,038 units sold in FY06.
> Property developer Phoenix Mills Ltd. said its board approved the merger of Ashok Ruia Enterprises Pvt Ltd. with itself.
> Ranbaxy Lab. said it would conduct tests for a new compound to treat respiratory inflammation.
> Tata Motors reported a 28% increase in unit sales at 5,79,378 (incl. exports)
vehicles for the fiscal year 2006-07.
> Tata Steel has agreed to sell its cold rolling mill at Sisodra for Rs 670-mln to Theis Precision Steel India.
> TVS Motor Co. has closed FY07 with a 15% growth in motorcycle sales at 9,24,813 units (8,06,708 units in FY06).
RBI Announces Monetary Measures
RBI seeks to contain inflation by hiking CRR and the Repo Rate
The Reserve Bank of India has decided to hike CRR (Cash Reserve Ratio) once again by 50 basis points in two tranches, the first 25 basis points by April 14, 2007 and the balance 25 basis points by April 28, 2007. CRR is the one that the banks have to maintain with itself in the form of cash reserves or by way of current account with the Reserve Bank of India (RBI), computed as a certain percentage of its demand and time liabilities. RBI has also hiked the Repo rate by 25 bps to 7.75% with immediate effect.
The main endeavor of RBI is to keep inflation under check. Inflation as measured by wholesale price index has ruled around 6.5% for the third consecutive week up to March 17, 2007 as per data released today which is way above the upper band of the benchmark set by RBI at 5.5%. The general index of industrial production increased by 11% during April 2006 to January 2007 as against 8.0% a year ago, as per the CSO's release data of March 12, 2007. The move will suck around Rs. 15,500 crore out of the banking system. It clearly indicates that the RBI is not comfortable at the current liquidity scenario in the country, in October & January quarterly
review it hiked the repo rate (the rate at which banks borrow from RBI when they are cash-strapped) each time by 25 basis points and now once again it increases the Repo rate by another 25 bps to 7.75%. It has hiked CRR by 50 basis point each in December 2006 and February 2007 and now it has hiked CRR again by 50 basis points to curb liquidity. To the top of it interest rate on eligible CRR balance is reduced from 1% to 0.5%.
The year-on-year growth in non-food bank credit up to March 16, 2007 was 29.5%, which is well above the RBI’s target of 20% for the fiscal. The year-on-year growth of aggregate deposits was 24.8% up to March 16, 2007, over and above 18% a year ago, seems to be comfortable. With the economy set to grow by around 9%, the central bank is concerned about overheating and asset bubbles building up. This move of RBI will make housing finance companies slow down their disbursements and hike interest rate on home loans. Since property prices are already very high, the increase in interest rate will impact the buyers’ purchasing power that may bring property prices rolling down. Although banks may not immediately increase its PLR, as the
credit offtake during the first half of the financial year normally slows down. Banks will wait and watch over its growth in advances and policy adopted by its competitors before hiking its lending rates.
The margins of the banks would be impacted unless lending rates go up. Going forward the volume growth may calm down to some extent as the lending rates go up. Net profit of banks will be impacted by 2-3% on account of such hike, if banks do not pass on. The yield on the 10-year benchmark government security is expected to rule around 8.10%-8.20%. Interest rate sensitive stocks will see a sharp correction, with banking and real estate shares likely to share the brunt.
The Reserve Bank of India has decided to hike CRR (Cash Reserve Ratio) once again by 50 basis points in two tranches, the first 25 basis points by April 14, 2007 and the balance 25 basis points by April 28, 2007. CRR is the one that the banks have to maintain with itself in the form of cash reserves or by way of current account with the Reserve Bank of India (RBI), computed as a certain percentage of its demand and time liabilities. RBI has also hiked the Repo rate by 25 bps to 7.75% with immediate effect.
The main endeavor of RBI is to keep inflation under check. Inflation as measured by wholesale price index has ruled around 6.5% for the third consecutive week up to March 17, 2007 as per data released today which is way above the upper band of the benchmark set by RBI at 5.5%. The general index of industrial production increased by 11% during April 2006 to January 2007 as against 8.0% a year ago, as per the CSO's release data of March 12, 2007. The move will suck around Rs. 15,500 crore out of the banking system. It clearly indicates that the RBI is not comfortable at the current liquidity scenario in the country, in October & January quarterly
review it hiked the repo rate (the rate at which banks borrow from RBI when they are cash-strapped) each time by 25 basis points and now once again it increases the Repo rate by another 25 bps to 7.75%. It has hiked CRR by 50 basis point each in December 2006 and February 2007 and now it has hiked CRR again by 50 basis points to curb liquidity. To the top of it interest rate on eligible CRR balance is reduced from 1% to 0.5%.
The year-on-year growth in non-food bank credit up to March 16, 2007 was 29.5%, which is well above the RBI’s target of 20% for the fiscal. The year-on-year growth of aggregate deposits was 24.8% up to March 16, 2007, over and above 18% a year ago, seems to be comfortable. With the economy set to grow by around 9%, the central bank is concerned about overheating and asset bubbles building up. This move of RBI will make housing finance companies slow down their disbursements and hike interest rate on home loans. Since property prices are already very high, the increase in interest rate will impact the buyers’ purchasing power that may bring property prices rolling down. Although banks may not immediately increase its PLR, as the
credit offtake during the first half of the financial year normally slows down. Banks will wait and watch over its growth in advances and policy adopted by its competitors before hiking its lending rates.
The margins of the banks would be impacted unless lending rates go up. Going forward the volume growth may calm down to some extent as the lending rates go up. Net profit of banks will be impacted by 2-3% on account of such hike, if banks do not pass on. The yield on the 10-year benchmark government security is expected to rule around 8.10%-8.20%. Interest rate sensitive stocks will see a sharp correction, with banking and real estate shares likely to share the brunt.
Equity Snapshot
ECONOMY NEWS
> India's economy is growing below its potential and the time has come to be more systematic with development programmes, finance minister said.
> From Apr.1, the ceiling rate on central sales tax (CST), a tax on inter-state
sale of goods, would come down from 4% to 3%.
> The country’s external debt stock shot up by US$ 6.19-bln in the quarter ended Dec 2006 to US$ 142.66-bln on the back of a sharp increase in commercial borrowings by corporates and also due to rise in non-resident India (NRI) deposits.
> The Centre`s fiscal deficit in Apr-Feb 2007 (eleven months) touched a level of Rs 1,218.17-bln. This represented 80% of the full year’s fiscal deficit target of Rs 1,523.28-bln.
> In an attempt to ensure that players with deep pockets enter the domestic airline sector, the Government has made the financial norms for scheduled airline operators more stringent.
> Prices of medicines, which would get patent protection in India in due course, would be sold cheaper than their lowest international price.
CORPORATE NEWS
> Bajaj Auto reported a 10% dip in motorcycle sales during March, this year, at about 165,500 units, compared to the same month, a year ago.
> Gujarat State Petronet (GSPL) and Reliance Inds (RIL), signed a gas transportation agreement to transport 11 MSMCMD of natural gas.
> Hero Honda Motors registered a 11.2% increase in sales as against the previous fiscal year. The company clocked sales of 277, 915 two-wheelers in the month of March 2007, thus ending the financial year 2006-07 with a cumulative tally of 33,36,756 units.
> The Visakha refinery of HPCL set a new record by achieving throughput of 9.2 million tonnes during 2006-07.
> Moser Baer said its unit had bought a 40% stake in Slovenia-based Solarvalue Proizvodnja d.d. from Solarvalue AG.
> NDTV Group, concluded overseas placements of about US$ 100-mln for its new entertainment channel, NDTV Imagine
> Tata Coffee opted out for the race to acquire Canada’s leading coffee company Van Houtte, finding the valuation too high.
> India's economy is growing below its potential and the time has come to be more systematic with development programmes, finance minister said.
> From Apr.1, the ceiling rate on central sales tax (CST), a tax on inter-state
sale of goods, would come down from 4% to 3%.
> The country’s external debt stock shot up by US$ 6.19-bln in the quarter ended Dec 2006 to US$ 142.66-bln on the back of a sharp increase in commercial borrowings by corporates and also due to rise in non-resident India (NRI) deposits.
> The Centre`s fiscal deficit in Apr-Feb 2007 (eleven months) touched a level of Rs 1,218.17-bln. This represented 80% of the full year’s fiscal deficit target of Rs 1,523.28-bln.
> In an attempt to ensure that players with deep pockets enter the domestic airline sector, the Government has made the financial norms for scheduled airline operators more stringent.
> Prices of medicines, which would get patent protection in India in due course, would be sold cheaper than their lowest international price.
CORPORATE NEWS
> Bajaj Auto reported a 10% dip in motorcycle sales during March, this year, at about 165,500 units, compared to the same month, a year ago.
> Gujarat State Petronet (GSPL) and Reliance Inds (RIL), signed a gas transportation agreement to transport 11 MSMCMD of natural gas.
> Hero Honda Motors registered a 11.2% increase in sales as against the previous fiscal year. The company clocked sales of 277, 915 two-wheelers in the month of March 2007, thus ending the financial year 2006-07 with a cumulative tally of 33,36,756 units.
> The Visakha refinery of HPCL set a new record by achieving throughput of 9.2 million tonnes during 2006-07.
> Moser Baer said its unit had bought a 40% stake in Slovenia-based Solarvalue Proizvodnja d.d. from Solarvalue AG.
> NDTV Group, concluded overseas placements of about US$ 100-mln for its new entertainment channel, NDTV Imagine
> Tata Coffee opted out for the race to acquire Canada’s leading coffee company Van Houtte, finding the valuation too high.
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