Headlines (13 Aug 2009)

Date: 13 August 2009

Thought for the day

“Conviction is worthless unless it is converted into conduct.”

–Thomas Carlyle

GENERAL

1)After the challenging mission to moon, the ISRO on Wednesday said it began preparations for sending a spacecraft to Mars within the next six years. “The government has sanctioned seed money of Rs 10 crore to carry out various studies on experiments to be conducted, route of the mission and other related details necessary to scale the new frontier,” ISRO Chairman G Madhavan Nair said.

Indian Express

ECONOMY

 2)INDIA and the US have started formal talks on a pact on liberalising and protecting bilateral investments. A team of trade officials from the US put in place by the new Barak Obama administration is in New Delhi for the negotiations.

ET

3)INDIA’S industrial output increased by 7.8% in June, the fastest pace since February 2008, in a clear sign that the economy is well on its way to a turnaround. India is expected to grow at 6%-plus in fiscal 2008-09, finance minister Pranab Mukherjee had said on Tuesday, some notches lower than the earlier estimates of about 7% following the weak monsoon. However, economists say that the robust manufacturing growth could offset the impact of weak mon- soon on the overall economic growth, following the data released by the ministry of commerce and industry on Wednesday. High growth in India’s capital goods sector is a sign of turnaround in the economy and the positive trend in industrial output will continue, finance secretary Ashok Chawla said on Wednesday.

ET

CORPORATE / INDUSTRY

 4)Tata Chemicals has decided to significantly increase its equity stake in Rallis India, a crop protection firm, by acquiring the entire shareholding of the promoter group. Tata Chemicals on Wednesday said it intended to buy a 35.8% stake in Rallis India from other promoter firms at a price not exceeding Rs 850 a share.

ET

5)KOLKATA’s leading corporate house, the Rs 2,000-crore Emami Group, is poised to unveil a Rs 5,500-crore investment plan for its flagship Emami and group companies. The move is in sync with their plans to become a Rs 6,000 crore group over the next two years.

ET

MONEY & BANKING

6)The rupee fell by around 40 paise against the dollar on Wednesday,and touched 48.50 levels during intra-day trade. The domestic currency opened at 48.09 and weakened to touch an intra-day low of 48.50. It recovered some of its losses to close at 48.35, as against the previous close of 47.96/97.

BL

7)BANKS have posted strong growth in deposits, investments as well as loans in the fortnight ended July 31, after recording a sharp de- cline in business in the first half of the month. According to the latest figures released by the Reserve Bank of India, total loans extended by banks rose to Rs 27,77,567 crore as on July 31, up by Rs 29,472 crore over the previous fortnight’s levels.

ET

8)As part of fund raising programme, the country’s third largest private sector lender, Axis Bank, is planning to raise about Rs 940 crore through preferential allotment of 1.08 crore shares to its promoters by September 24.

FE

MARKETS

 9)The domestic equity bourses recovered sharply from their intra-day lows on the back of better-than-expected industrial production data and a recovery in the European market. The benchmark equity indices, however, ended the day with marginal losses. The 30-share Sensex of the Bombay Stock Exchange(BSE) closed the day at 15,020.16 points, down by 54.43 points, or 0.36%, while the broader 50-share Nifty of the National Stock Exchange (NSE) settled at 4,457.50 points, losing 0.31%, or 13.85 points. Earlier in the day, tracking heavylosses in the Asian markets, the Sensex was down by over 370 points, but soon regained momentum when the government released industrial production data for June.

FE

10)The rapid spread of swine flu has hit share prices of top airline and hospitality companies as market players fear a sharp drop in travel and tourism due to the flu scare. In contrast, shares of top pharmaceutical companies have seen a sharp rise during the period.

BS

11)Drug major Sun Pharmaceutical Industries on Wednesday climbed nearly 4% on the Bombay Stock Exchange(BSE) after it got the US health regulator’s approval for its generic version of Oxaloplatin injections used in the treatment of cancer.

 FE

 IPO

12)NHPC’s IPO for up to $1.25 billion was subscribed 23.53 times by 5 pm on Wednesday, stock exchange data showed, in a response that would embolden the government to hurry up stake sales in more firms.

ET

13)Entertainment World Developers(EWDPL), a partner firm of Phoenic Mills, is planning to float a Rs 500-crore initial public offer (IPO) by the year-end, a top company official said.

BS

RIGHTS ISSUE

14)Adlabs Films Limited (Adlabs), a film and entertainment services company and a member of the Reliance Anil Dhirubhai Ambani Group, announced on Wednesday that the company’s board has approved raising Rs 600 crore($124 million) by way of rights offer of equity shares to the company’s shareholders.

FE

MUTUAL FUNDS

 15)The stock market rally since March has prompted retail investors to commit fresh money to equity funds. Equity funds raked in gross inflows of about Rs 21,720 crore between April and July 2009, al- most 44 per cent higher than levels seen in the same period last year, data from mutual fund body AMFI shows.

BL

16)SBI Fund management will use a speech-enabled interactive voice response(IVR) system from IT services firm Datacraft to allow customers to use their voice to get the latest net asset values of mutual fund schemes.

BS

17)Mutual funds’ exposure to equity of real estate companies has increased significantly in the last two quarters. The MFs investment in real estate stocks rose from Rs 124 crore at the end of March 2009 and Rs 171 crore at the end of December 2008 to nearly Rs 1,113 crore at the end of the first quarter of FY09.

BS

COMMODITIES

 18)Prices of chilli are seen bullish for the next two-three-months on the back of delayed and deficient monsoon in Andhra Pradesh, the country’s largest producer, said traders and analysts. “Chilli prices on National Commodity and Derivatives Exchange (NCDEX) are likely to touch Rs 7,000-7,500 a quintal in next two-three months due to expectation of fall in output this year,” said Chowda Reddy, senior research analyst at Karvy Comtrade.

 BS

19)A SHARP upside in the prices of agri-commodities following production concerns due to low rainfall has boosted volumes on com- modity exchanges. The total value of trade in agri-commodities during the fortnight ended July 31, increased by 24% to Rs 54,019 crore compared with the corresponding fortnight in the previous year, according to data released by commodity markets regulator Forward Markets Commision.

 ET

20)Multi Commodity Exchange(MCX) has imposed an additional five per cent margin on jute futures to check volatility in prices. As a risk management measure, the exchange has decided to levy additional margin on members having open position(both buy and sell side) in all the contracts of raw jute, a MCX statement said. The margin will be effective from August 13, it said.

BS

21)Gold prices today rose by Rs 50 to Rs 15,050 per 10 gm in the bullion market on fresh buying by stockists and jewellery makers to meet the current season festival demand.

BS

REAL ESTATE

22)After testing the project viability of affordable homes in the range of Rs 10-30 lakh in Noida last month, Unitech – the second largest developer of the country – will line up over 4.5 million sq ft (MSF) of residential space on the eve of Independence Day in the same category. Unitech will invest nearly Rs 600 crore in developing these projects and has formed a subsidiary under the brand name Uni Homes for the same. It is set to launch nearly 5,000 affordable housing units in seven cities – Noida, Greater Noida, Chennai, Kolkata, Bhopal, Mohali and Rewari.

BS

INFORMATION TECHNOLOGY

23)Kickstarting its asset sale exercise in India, financially battered American International Group(AIG) has sold its AIG Systems Solutions Pvt Ltd(AIGSS) to MphasiS Ltd on Wedesday. Though the companies have not disclosed the deal value, industry sources estimate it to be between Rs 200 crore and Rs 250 crore. The acquisition, analysts feel, could swell MphasiS annual revenues by Rs 100 crore to Rs 125 crore.

FE

24)Etisalat DB Telecom India, in which the UAE-based Etisalat holds a 45 per cent stake, is close to signing a Rs 1,500 crore out- sourcing deal with IT major Wipro Technologies. If the deal goes through, this would be the second largest deal for Wipro in the telecom space.

BS

25)IT is a second coming for IT firm Mastek in the Asian region. The Mumbai-based firm, which burnt its fingers during the Asian crisis in the last decade, is now tapping the region again. The firm has launched an insurance product specifically targeted at the Asian market called Elixir Asia, and also intends grow its Asian business from 5% of revenues to 20% of revenues in the next five years. The Asian business was a significant contributor to Mastek’s revenues in the late nineties.

ET

INTERNATIONAL

26)Oil reversed early losses on Wednesday to edge back towards $70 a barrel, after initially falling to the lowest price in August so far on concerns about the strength of demand ahead of weekly US inventory data.

BS

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

Karvy Consultants Ltd www.karvy.com
 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times www.economictimes.com
The Financial Express www.financialexpress.com
Business Line www.businessline.in
Business Standard www.business-standard.com
The Times of India www.timesofindia.com
The Hindu www.hindu.com
Deccan Chronicle www.deccan.com
The New Indian Express www.newindpress.com

FOR THE DAY (13 Aug 2009)

FOR THE DAY:

The indices are expected to open on a positive note as US markets ended on a positive note and Asian markets are trading on a positive note.

Trade long in Nifty from 4500‐4520levels with a stop loss placed at 4480 levels targeting 4550/4610 levels.

Support & Resistances for 13-08-2009

Support & Resistances for 13-08-2009
 
    SENSEX NIFTY FUTURE (Aug2009)
    BANKNIFTY NIFTY
12/08/2009 Open  14953.44 4408.10 7145.00 4412.55
High 15043.62 4473.80 7215.00 4474.00
Low 14701.15 4359.80 6974.00 4351.20
Close 15020.16 4457.50 7177.25 4460.00
LTP 15020.16 4475.50 7210.00 4472.10
Range 342.47 114.00 241.00 122.80
13/08/2009 R3 15606.58 4658.37 7604.08 4674.00
R2 15264.11 4544.37 7363.08 4551.20
R1 15142.14 4500.93 7270.17 4505.60
PP 14921.64 4430.37 7122.08 4428.40
S1 14799.67 4386.93 7029.17 4382.80
S2 14579.17 4316.37 6881.08 4305.60
S3 14236.70 4202.37 6640.08 4182.80
 
R1/R2/R3: Resistance
PP: Pivot Point
S1/S2/S3: Supports