Post Market Analysis 14.11.2011 _Monday_ Sensex_ Nifty hit lowest

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					                       POST MARKET ANALYSIS
                       Post Market Analysis                                                                    14.11.2011 (Monday)

                         Sensex, Nifty hit lowest level in nearly 3 weeks
POST MARKET ANALYSIS




                         Key benchmark indices weakened to hit their lowest level in almost three weeks in late trade as European stocks
                         reversed initial gains. Index heavyweight Reliance Industries (RIL) declined. Two other index heavyweights,
                         ICICI Bank and L&T, too dropped. Mahindra & Mahindra (M&M) tumbled nearly 6% after reporting weak Q2
                         results. The BSE Sensex was provisionally down 93.72 points or 0.55%, off close to 295 points from the day's
                         high and up close to 5 points from the day's low. The market breadth was weak. IT stocks rose on a weak rupee.
                         Sun Pharmaceutical Industries advanced after good Q2 results. Metal stocks declined after a slew of weak Q2
                         results reported by the metal companies recently. Realty stocks also dropped.

                         The market opened on a firm note as Asian stocks rose. A bout of volatility was witnessed in morning trade as
                         key benchmark indices regained strength after hitting fresh intraday lows. The market once again pared gains to
                         hit fresh intraday low in mid-morning trade. The market regained strength in early afternoon trade. Intraday
                         volatility continued as key benchmark indices hit fresh intraday lows in afternoon trade. Volatility was at the
                         forefront as key benchmark indices regained positive zone after slipping into the red for a short while in mid-
                         afternoon trade. The market weakened to hit 3-week low in late trade.

                         As per provisional figures, the BSE Sensex was down 93.72 points or 0.55% to 17,099.10. The index gained
                         199.17 points at the day's high of 17,391.99 in early trade, its highest levels since 9 November 2011. The index
                         fell 98.39 points at the day's low of 17,094.43 in late trade, its lowest level since 25 October 2011.

                         The S&P CNX Nifty was down 26.95 points or 0.52% to 5,141.90, as per provisional figures. The Nifty hit a
                         high of 5,228.90 in intraday trade, its highest levels since 9 November 2011. The Nifty hit a low of 5,140.55 in
                         intraday trade, its lowest level since 25 October 2011.

                         BSE clocked turnover of Rs 2346 crore, lower than Rs 2622.35 crore on Friday, 11 November 2011.

                         The market breadth, indicating the overall health of the market, was weak. On BSE, 2,000 shares fell and 836
                         rose. A total of 89 shares were unchanged. The breadth was positive earlier in the day.

                         From the 30-share Sensex pack, 20 fell and the rest of them rose. Maruti Suzuki India, Tata Motors and State
                         Bank of India (SBI) fell by between 2.97% to 3.13%.

                         Index heavyweight Reliance Industries (RIL) fell 1.2% to Rs 873.25, off the day's high of Rs 895.95. RIL's unit
                         Infotel Broadband Services recently acquired a 38.5% stake in privately held digital learning firm Extramarks
                         Education. It did not disclose the financial details of the investment. The deal will help Extramarks develop its
                         digital distribution services and expand market penetration, RIL said. Last year, Reliance acquired Infotel
                         Broadband, the only company to win a nationwide licence for broadband wireless spectrum in a government
                         auction, for $1 billion, marking its return to the telecom business.

                         Another index heavyweight, ICICI Bank fell 0.21%.


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                       1, Chowringhee Square, 2nd Floor, Kolkata- 69

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POST MARKET ANALYSIS

  Reliance Communications fell 2.1%, reversing initial gains. The Anil Ambani-led company on Monday, 14
  November 2011, confirmed that it is in talks with elder brother Mukesh's Reliance Industries to lease out the
  mobile phone company's telecommunications infrastructure to aid the latter's new wireless broadband business
  venture. The deal, if it goes through, will be significant as this will be the first time the companies headed by the
  two brothers will be working with each other since a 2005 split of the conglomerate built by their father,
  Dhirubhai Ambani. The brothers were estranged after a bitter feud over their multi-billion dollar family business
  empire.

  Reliance Communications' (RCom) consolidated net profit jumped 60.5% to Rs 252 crore on 2% growth in total
  turnover (post eliminations) to Rs 5040 crore in Q2 September 2011 over Q1 June 2011. The company announced
  Q2 results on Saturday, 12 November 2011.

  Reliance Capital tumbled 8.08% after the company announced after market hours on Friday that consolidated net
  profit fell 70.1% to Rs 33.45 crore on 17.6% growth in total income to Rs 1546.12 crore in Q2 September 2011
  over Q2 September 2010.

  Metal stocks declined after a slew of weak Q2 results reported by the metal companies recently. India's largest
  steel maker by sales Tata Steel fell 3.93%, extending Friday's 4.19% losses triggered by weak Q2 numbers. The
  company announced on Thursday, 10 November 2011, that consolidated net profit fell 89.26% to Rs 212.43 crore
  on 11.73% rise in total income to Rs 32918.33 crore in Q2 September 2011 over Q2 September 2010. The
  company said its performance was adversely impacted by higher global raw materials costs and lower average
  selling prices at Tata Steel Europe. Tata Steel's net debt at the end of September 2011 stood at Rs 45056 crore,
  compared to Rs 46627 crore at the end of March 2011.

  Hindalco Industries fell 1.98% extending Friday's 4.31% slide triggered by a weak outlook issued by the copper
  and aluminium maker at the time of announcing Q2 results on Thursday, 10 November 2011. Hindalco Industries
  said that the second half of FY 2012 (year ending March 2012) will be difficult due to global uncertainties, falling
  LME prices, and persisting cost pressures. The intensity of resource challenge, which accentuated in the first half
  of FY 2012 due to monsoon related issues is expected to moderate, the company said.

  JSW Steel tanked 2.6% after reporting a consolidated net loss of Rs 669.32 crore in Q2 September 2011,
  compared with net profit of Rs 373.26 crore in Q2 September 2010. The company's total income rose 33.33% to
  Rs 8180.60 crore in Q2 September 2011 over Q2 September 2010. The company announced results during market
  hours today.

  National Aluminum Company declined 1.67% after net profit fell 37.8% to Rs 139.34 crore on 11.6% growth in
  total income to Rs 1746.01 crore in Q2 September 2011 over Q2 September 2010.

  Bhushan Steel was flat. The company's net profit fell 20.12% to Rs 206.88 crore on 42.65% growth in total
  income to Rs 2468.70 crore in Q2 September 2011 over Q2 September 2010. The company announced results
  during market hours today.

  Among other metal stocks, Hindustan Zinc, Sterlite Industries and Sail shed by between 0.55% to 3.09%.



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POST MARKET ANALYSIS

Coal India (CIL) declined 0.92%. The company on Saturday reported consolidated net profit of Rs 2593.11 crore
on total income of Rs 14942.27 crore for Q2 September 2011. The figures for the corresponding previous year
period are not available as till the half-year ended 30 September 2010, CIL was not listed on the bourses.

IT stocks rose on a weak rupee. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a
lion's share of revenue from exports. The partially convertible rupee was at 50.31/32, weaker than Friday's close of
50.115/125.

India's third largest software services exporter Wipro gained 0.86%, with the stock gaining for the third straight on
the back of a new order win. The company announced after market hours on Tuesday, 8 November 2011, that
Premier Foods has selected Wipro Technologies, the global IT, consulting and outsourcing business of Wipro, as a
strategic technology partner. As part of the five year strategic relationship, Wipro will be supporting both systems
and processes to enhance efficiency of Premier Foods' supply chain. This relationship will enable Premier Foods
to realise quantifiable benefits for a known budgetary expenditure with minimal exposure to variable costs.

India's second largest software services exporter Infosys rose 1.25%. A US federal judge, last week, refused to
allow Infosys an out-of-court settlement in a case filed by one of the firm's employees, a setback to the company,
which is facing allegations of visa rule violations. Jack Palmer, a principal consultant at Infosys, filed a lawsuit
against Infosys in the Alabama state court earlier this year, alleging the company sought his help to circumvent US
visa laws. The lawsuit was later moved to the federal court. Mr. Palmer accused Infosys of using short-term
business visit visas to circumvent the fewer and expensive work visas meant for high-skilled labor. His suit led to
a probe by US authorities, including an inquiry by a US Senate subcommittee. Infosys has previously denied any
wrongdoing.

India's largest software services exporter TCS fell 0.69%, reversing initial gains. The company announced during
market hours on Wednesday, 9 November 2011 that Diligenta, a subsidiary of the company, has won a $2.2 billion
15-year contract from UK-based pensions and insurance provider Friends Life.

India's largest engineering and construction firm by sales L&T fell 0.34%. The company announced during market
hours today that it has executed the first order of dry shielded canisters from Transnuclear Inc, USA, an Areva
company for storage of radioactive waste. Apart from these 12 canisters, L&T is ready to dispatch additional 2
canisters for the next order, L&T said in a statement. These canisters are for US based leading nuclear utilities and
have been manufactured in accordance with the US Code of Federal Regulations (10 CFR) and Nuclear Safety
Class 1 standards.

India's largest electric equipment maker by sales Bhel declined 2.07% ahead of its Q2 results today.

Sun Pharmaceutical Industries rose 1.3% after consolidated net profit rose 18.6% to Rs 597.74 crore on 42.1%
growth in total income to Rs 1971.14 crore in Q2 September 2011 over Q2 September 2010. The results for the
quarter and half year include the results of Israel based Taro Pharmaceutical Industries and its subsidiaries and
therefore are not comparable with the corresponding figures of previous quarter/half year period. Taro became a
subsidiary of the company on 20 September 2010.



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POST MARKET ANALYSIS

Dilip Shanghvi, Chairman and Managing Director, Sun Pharma said, "Performance delivered this quarter and in
the first half, though partly aided by the exchange rate movement, is a clear reflection of the steady effort made
across all parts of our business towards long term sustainable growth and profitability. India business maintains
the growth in prescription share with our key customers. In the US and other international markets, work continues
on enriching the product pipeline and on strengthening the quality and regulatory processes".

Oil India fell 0.25%. The company announced during market hours today that net profit rose 24.28% to Rs
1138.52 crore on 50.1% rise in total income to Rs 3952.58 crore in Q2 September 2011 over Q2 September 2010.

India's largest tractor maker by sales Mahindra & Mahindra (M&M) tumbled 5.73% after the company's net profit
fell 2.78% to Rs 737.38 crore on 34.75% increase in total income to Rs 7592.14 crore in Q2 September 2011 over
Q2 September 2010. The stock was the top loser from the Sensex pack. The result was announced during trading
hours today, 14 November 2011.

Mahindra & Mahindra said that board of directors of the company at its meeting held today, 14 November 2011,
approved the consolidation of its shareholding in Swaraj Automotives (SAL) through a voluntary open offer. The
company would be making an open offer to the shareholders of SAL for acquiring upto 6.47 lakh shares
constituting 27% of the total voting equity share capital of SAL at an offer price of Rs 90 per share and for a total
price consideration not exceeding Rs 5.82 crore. SAL is listed at the Delhi Stock Exchange.

Realty major DLF declined 2.3% extending Friday's 2.31% losses triggered by weak Q2 results. The company
announced on Thursday that consolidated net profit fell 10.98% to Rs 372.41 crore on 2.27% rise in total income
to Rs 2577.16 crore in Q2 September 2011 over Q2 September 2010.

DLF said it expects second half of the year ending March 2012 (FY 2012) to witness a stronger operational
performance, both in terms of a scale up in launches in the plotted and group housing segments and deliveries of
its projects across the cities of Gurgaon, Chennai and Cochin. DLF also expects the momentum on the non-core
divestment plan to continue with increasing traction in the proposed divestment of its hospitality assets which
would further help in moderation of its debt levels. With strategic capital expenditures being undertaken on
improving the quality of its land bank and the build out of select commercial and infrastructure assets, the
company is well positioned to capitalize on the growth opportunities as and when the demand scenario revives,
DLF said in a statement.

DLF said that the Competition Appellate Tribunal has on 9 November 2011 issued a stay order on the demand on
penalty and kept in abeyance the directions relating to modifications of conditions. This pertains to the order
passed by the Competition Commission of India dated 12 the August 2011. While this is an interim order, the
company believes that it has a strong case based on merits, DLF said. It may be recalled that the Competition
Commission of India had imposed a Rs 630-crore penalty on the country's biggest property developer by sales in
August as it found the company abusing its marker leadership position to the disadvantage of residents at a
housing complex.

HDIL fell 5.93%, extending Friday's 4.56% slump triggered by weak Q2 results. Consolidated net profit declined
24.41% to Rs 148.55 crore on 13.89% rise in total income to Rs 450.09 crore in Q2 September 2011 over Q2
September 2010.


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POST MARKET ANALYSIS

  Great Eastern Shipping Company lost 2.62% after consolidated net profit dropped 83.8% to Rs 27.31 crore on
  2.3% growth in total income to Rs 732.94 crore in Q2 September 2011 over Q2 September 2010.

  SpiceJet lost 5.35% after the budget airline posted net loss of Rs 240.07 crore in Q2 September 2011, compared to
  net profit of Rs 10.11 crore in Q2 September 2010.

  Inflation, as measured by the wholesale price index (WPI), stood at 9.73% in October 2011, as against 9.72% in
  September 2011, the latest data showed. The annual inflation rate was at 9.08% during the corresponding month of
  the previous year. The government left unchanged inflation rate for August at 9.7%.

  Industrial production grew 1.9% in September 2011 from a year earlier, far below market expectations, reflecting
  weakening economic activity due to the central bank's aggressive tightening of monetary policy. The reading was
  also significantly lower than the revised 3.5% industrial output growth in August, government data showed on
  Friday, 11 November 2011.

  Manufacturing output, which has a 75.5% weight in the index, rose 2.1% year on year in September, compared
  with a revised 4% increase in August. Mining output shrank 5.6%, compared with a revised 4.1% contraction in
  August. Capital goods output in September shrank 6.8% from a year earlier after rising 4.0% in August.

  The food price index rose 11.81% and the fuel price index climbed 14.50% in the year to October 29, government
  data on Friday, 11 November 2011, showed. In the previous week, annual food and fuel inflation stood at 12.21%
  and 14.50%, respectively. The primary articles price index was up 11.43%, compared with an annual rise of
  12.08% a week earlier.

  India's October exports rose an annual 10.8% to $19.9 billion, while imports for the month rose 21.7 percent to
  $39.5 billion, the trade secretary said on Tuesday, citing provisional data. India's trade deficit in October is seen at
  $19.6 billion, the highest in four years, Rahul Khullar said. At this rate, the trade deficit for the year could breach
  the $150 billion mark, he added.

  India's service sector contracted for a second straight month in October, as new business grew at its weakest pace
  since May 2009, dragged by sagging global demand and tight monetary policy, a survey showed on Thursday, 3
  November 2011. The seasonally adjusted HSBC Markit Business Activity Index, based on a survey of around 400
  firms, slumped to 49.1 in October, its lowest reading in two-and-a-half years and below the 50-mark which
  separates growth from contraction. It was at 49.8 in September.

  India's manufacturing activity in October expanded--though modestly--indicating an improvement in business
  conditions from a month ago as growth in new orders accelerated, a survey showed Tuesday, 1 November 2011.
  The seasonally adjusted HSBC Purchasing Managers' Index, prepared by Markit, rose to 52 in October from 50.4
  in September. A figure above 50 indicates expansion.

  India needs to guard against imported inflationary pressure as the euro-zone continues to reel under the debt crisis,
  Prime Minister Manmohan Singh said on Wednesday, 2 November 2011. "In an increasingly interdependent
  world, we have to be wary of contagion effects," Mr. Singh said in a statement before his departure to attend a
  conference of the Group of 20 industrial and developing economies in Cannes, France.

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POST MARKET ANALYSIS

  RBI announced a 25 basis points hike in its key policy rate viz. the repo rate to 8.5% after half-yearly review of
  the monetary policy on 25 October 2011. The central bank cut its GDP growth forecast for the current fiscal year
  through March 2012 to 7.6% from 8% earlier. But it retained its March-end inflation projection of 7%. RBI said
  the projected inflation trajectory indicates that the inflation rate will begin falling in December 2011 (January
  2012 release) and then continue down a steady path to 7% by March 2012. It is expected to moderate further in
  the first half of 2012-13. This reflects a combination of commodity price movements and the cumulative impact
  of monetary tightening. Further, moderating inflation rates are likely to impact expectations favourably.

  Mr. Sudipto Mundle, a member of the Reserve Bank of India's technical advisory committee on monetary
  policy, on 3 November 2011 said he expects inflation to ease in the January-March quarter as global commodity
  prices will begin to cool by then, helped by a favorable base. However, it will still overshoot the RBI's March-
  end projection of 7%, possibly ending the fiscal year at as high as 8%, he added. Mr. Mundle expects the
  economy to grow 7%-7.5% this fiscal year, below the RBI's 7.6% forecast.

  Emerging markets such as India must take measures to boost long-term foreign direct investment to blunt
  volatility in exchange rates, and any capital control measures must be selective and temporary, a senior
  executive of the Asian Development Bank said on Monday, 14 November 2011. While capital flows and
  exchange rates are likely to be volatile in the short-term amid ongoing euro-zone debt concerns, India must
  focus on improving its investment climate by providing better infrastructure, putting in place a coherent
  manufacturing policy and developing financial markets, Managing Director General Rajat M. Nag said on the
  sidelines of the India Economic Summit.

  Nag said achieving India's fiscal deficit target would be difficult, but achievable. "We are pleased with the
  planned approach to fiscal consolidation which is essentially improving the targeting of subsidies rather than
  curtailing critical investment in infrastructure," he said.

  European stocks fell Monday, unable to hold on to opening gains as initial enthusiasm over new technocratic
  leaders in Italy and Greece gave way to lingering worries about how both countries will push through reforms to
  tackle their debt piles. Key benchmark indices in France, UK and Germany fell by between 0.06% to 0.53%.

  Italy has named Mario Monti the new premier while its parliament has passed tough austerity measures to
  control the debt crisis. Meanwhile, Lucas Papademos took office on Friday as the new Prime Minister of Greece
  to save the debt-strapped nation from bankruptcy.

  Asian stocks rose on Monday on hopes that new leaders in Italy and Greece will take decisive action to save
  their indebted nations from bankruptcy and fend off a wider financial meltdown in the euro zone. Key
  benchmark indices in Hong Kong, China, Indonesia, South Korea, Singapore, Japan, and Taiwan rose by
  between 1.05% to 2.15%.

  Trading in US index futures indicated that the Dow could gain 11 points at the opening bell on Monday, 14
  November 2011. US stocks jumped on Friday, ending higher for the week, after the Italian Senate's approval of
  economic reforms gave investors some relief from worries about the euro zone's debt crisis.




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POST MARKET ANALYSIS




NIFTY GAINERs & NIFTY LOSERs




                          Top Ten Gainers                                                        Top Ten Losers
             Symbol                LTP            %     Prev.                      Symbol               LTP          %      Prev
                                                Change Close                                                       Change   Close
       RANBAXY                    484.00          3.34 468.35                RELINFRA                  419.45        -7.55 453.70
       BHARTIARTL                 405.00          2.38 395.60                RPOWER                     94.50        -6.85 101.45
       HEROMOTOCO                2210.00          1.71 2172.95               M&M                       790.00        -6.11 841.40
       HDFCBANK                   471.45          1.59 464.05                TATASTEEL                 413.50        -3.80 429.85
       DRREDDY                   1645.00          1.58 1619.40               MARUTI                   1025.00        -3.28 1059.75
       SUNPHARMA                  511.40          1.41 504.30                SBIN                     1741.70        -3.15 1798.35
       INFY                      2814.00          1.38 2775.70               TATAPOWER                  99.00        -3.04 102.10
       CAIRN                      318.50          1.24 314.60                SAIL                      102.05        -2.99 105.20
       HDFC                       674.50          1.17 666.70                TATAMOTORS                176.30        -2.84 181.45
       HINDUNILVR                 399.75          1.04 395.65                PNB                       928.00        -2.74 954.15




Source: CAPITALINE, NSE

DISCLAIMER: Equity market investments entail high risk. Investors are therefore advised to take into account their risk-appetite before investing.
The company and its employees will not be liable for any loss arising from this report. The author(s) do not have any exposure in the scrips
recommended in the report.




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                                                                                                          For Private Circulation Only

				
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