Trouncing the expectations of the industry, FMCG and hotel major ITC announced its overwhelming fourth quarter (January-March) results on Friday.
ITC Q4 beats street, net up 25% to Rs 1,281.48 crore
On the back of strong growth in cigarette sales and reduced losses in other FMCG business, the company’s net profit surged 24.6% year-on-year to Rs 1,281.48 crore. Its quarterly earnings were also boosted by robust growth in hotels business revenue The net sales of he company were up 15.5% to Rs 5,836.26 crore for the three-month period. The sales of the Kolkata-based company’s FMCG base business rose 14% from a year ago to Rs 4079.85 crore. Reacting to the results, Kaustubh Pawaskar, an FMCG Analyst with Sharekhan told CNBC-TV18 that the company’s results have been in line with his expectations,“I was expecting around Rs 1,287 crore of bottom line for the quarter and PAT came in around Rs 1,282 crore,” he added.
In an exclusive interview with CNBC-TV18, research analyst of ICICI Direct, Sanjay Manyal says that this year, “the 15% price hike contributed very well to the margins of ITC” He expects to see “an upside of 15% odd” in the stock.
Saturday, May 21, 2011
Thursday, May 12, 2011
Good IIP Data : Mraket Close at Day Low
IIP Data: The IIP data for March has come in at 7.3% versus 3.6%, reports NDTV Profit. March capital goods growth is at 12.9% versus 36% (YoY), mining sector growth is at 0.2% versus 12.3% (YoY) while manufacturing sector growth is at 7.9% versus 16.4% (YoY), it adds.
IIP Data: March electricity sector growth is at 7.2% versus 8.3% (YoY), basic goods growth is at 4.3% versus 10.2% (YoY), intermediate goods growth is at 5.4% versus 13.5% (YoY), consumer goods growth is at 7.7% versus 9.3% (YoY), consumer durable goods growth is at 12.3% versus 32.6% (YoY) while consumer non-durable goods growth is at 5.7% versus 1.5% (YoY), reports NDTV Profit. February IIP data has been revised to 3.7 from 3.6%, it adds.
Inspite of good IIP data market slip very sharply. Most of share close at day low. Now this is not a good sign for indian equity market for near term because sensex close 250 down at 18336 and Nifty down 79 point and close at 5486 it's just under basic supprt of 5500 level.
IIP Data: March electricity sector growth is at 7.2% versus 8.3% (YoY), basic goods growth is at 4.3% versus 10.2% (YoY), intermediate goods growth is at 5.4% versus 13.5% (YoY), consumer goods growth is at 7.7% versus 9.3% (YoY), consumer durable goods growth is at 12.3% versus 32.6% (YoY) while consumer non-durable goods growth is at 5.7% versus 1.5% (YoY), reports NDTV Profit. February IIP data has been revised to 3.7 from 3.6%, it adds.
Inspite of good IIP data market slip very sharply. Most of share close at day low. Now this is not a good sign for indian equity market for near term because sensex close 250 down at 18336 and Nifty down 79 point and close at 5486 it's just under basic supprt of 5500 level.
Tuesday, May 10, 2011
Markets For You
GLOBAL INDICES
• At 9.00 am in the morning, Asian markets were trading mixed, with Nikkei trading 0.24% down and Hang Seng trading 0.76% higher.
• Nikkei fell on Monday on concerns of potential power shortages, after Japan's PM
called for the closure of in Chubu Electric due to worries that a large earthquake could trigger another nuclear crisis.
• Hang Seng index ended higher on Monday helped by stablizing global crude prices, though gains got capped on concern over key economic data due from
China.
• FTSE index fell on Monday as energy group Centrica PLC lowered its earnings forecast and after HSBC Holdings reported a lower underlying first-quarter profit.
• Dow Jones rose on Monday as recovery in commodity prices helped to lift the stocks of energy and materials companies.
INDIAN EQUITY MARKET
• At 9.00 am in the morning, the SGX Nifty was trading 0.04% higher.
• Indian stock indices ended volatile session flat on Monday as investors kept position light due to sharp recovery in the prices of crude oil.
• Shares of oil retailers declined on worries over rising under-recoveries of the companies on retail fuel sale with HPCL, IOC and BPCL falling 1-3%.
• Auto and banking stocks were the worst hit due to profit booking with Maruti Suzuki, Tata Motors, Bajaj Auto, Axis Bank and PNB ending down around 2% each.
• HUL gained 3% after the company posted better than expected Jan-Mar net profit.
• Eicher Motors shares surged 12% as the company's Jan-Mar consolidated net profit rose 82%.
• Piramal Healthcare shares ended nearly 9% down on the company's decision to enter the financial services sector.
• Jyothy Lab declined 4% on concerns the acquisition of loss-making Henkel India may weigh on the balance sheet of the company.
DOMESTIC NEWS
• IMF hails moves by India's central bank to hike interest rates in an attempt to curb
the rising cost of living.
• OECD says that India's economy is likely to lose pace even as China and the US are expected to see good expansion in the coming months.
• Government sets a target to raise Rs.40000 cr through disinvestment in FY12.
• RBI Governor says that it is unrealistic to expect the central bank to deliver on an
inflation target in the short-term given that the drivers of inflation largely emanate
from supply-side.
• An EPFO official says it would not be possible to retain the 9.5% rate paid for 2010-11, this year.
• India's domestic passenger car sales growth moderated to 13.2% on year to 162,825 vehicles in April, the slowest in 2 years, and 16.2% lower than the 194,199 units sold a month ago.
• Assocham urges government not to levy the proposed 5% countervailing duty (CVD) on coal as it may impact power tariff.
• SAIL asks its subsidiary, Maharashtra Elektrosmelt, to raise ferro-alloys production in line with the growing requirement of SAIL's steel plants.
• According to SEBI, Corporate India raised Rs.67608.5cr through 91 issues in 2010-11, as against Rs.57555.1cr through 76 issues in 2009-10.
• US-based iGate Corp increases its shareholding in Patni Computer to 81.29% by acquiring 20% more stake in the company through an open offer.
• Jyothy Labs offers to acquire up to 20% more stake in Henkel India in an open offer at Rs.41.20 per share.
• CRISIL says the microfinance institutions sector is likely to see consolidation over the medium term, since small players may find it difficult to operate in a strict regulatory environment.
DERIVATIVES MARKET
• Nifty May futures (near future) closed up against the spot index with around 8 point premium; it however witnessed 0.39 mn decrease in open interest (OI).
• Put Call Ratio (OI) rose to 0.97 on May 9 from 0.94 on May 6.
• Nifty 6000 May Call strike continued to witness the highest OI.
• Nifty 5500 May Put strike witnessed the highest OI.
• India VIX (volatility index based on the Nifty 50 Index Option prices) rose to 21.50% on May 9 from 20.97% on May 6.
INDIAN DEBT MARKET
• Call rates ended at 7.40-7.50% on Monday as banks borrowed funds to cover their cash reserve requirements for the new Reporting Fortnight in the first week itself.
• Banks borrowed Rs.64305 cr from RBI’s repo window vs Rs.29245 cr on Friday.
• The RBI has discontinued the second set of daily LAF auctions.
• Banks can now also borrow from the Marginal Standing Facility, introduced by the RBI to help banks meet their fund needs when liquidity is tight.
• Gilt yields rose sharply on Monday as the recovery in crude oil worsened sentiment ahead of a likely hike in local fuel prices, which is expected to push inflation higher.
• The benchmark 7.80%, 2021 bond ended at Rs.96.90 or 8.2624% yield, down from Rs.97.48 or 8.1741% yield on Friday.
• Local oil marketing companies have been mulling a fuel price hike as the relentless surge in global crude prices was resulting in huge revenue losses.
• After market hours, RBI announced the auction of 7.83%, 2018 paper worth Rs.4000 cr; 7.80%, 2021 paper worth Rs.5000 cr and 8.30%, 2040 paper worth Rs.3000 cr on May 13.
Currency Overview
• The Indian rupee rose against the US dollar on Monday as a slight rise in the euro and expectation of robust dollar inflows in Power Finance Corp’s FPO prompted dollar sales; sporadic dollar sales by exporters also supported the rupee's rise.
• But persistent dollar demand from oil importers weighed on the rupee.
Commodity Overview
• Crude oil prices rose $5.37 to settle at $102.55 a barrel on the NYMEX on news that the CME Group is raising the margin requirement for a wide variety of crude-oil contracts.
• Gold prices rose as some weakness in the U.S. dollar and concerns over European debt woes lured investors back to it.
INTERNATIONAL NEWS
• US Treasury Secretary says that China was making progress but needed to change its economic growth model.
• European Union is looking to lower interest rates on bailout loans to Greece and Ireland and is working on a second rescue for Athens in an effort to prevent a disorderly debt restructuring.
• S&P cut Greece's rating to B from BB- over concerns that a debt restructuring is increasingly likely.
• Bank of China receives regulatory approval to issue up to 32bn yuan of subordinate debt to improve its capital structure.
• At 9.00 am in the morning, Asian markets were trading mixed, with Nikkei trading 0.24% down and Hang Seng trading 0.76% higher.
• Nikkei fell on Monday on concerns of potential power shortages, after Japan's PM
called for the closure of in Chubu Electric due to worries that a large earthquake could trigger another nuclear crisis.
• Hang Seng index ended higher on Monday helped by stablizing global crude prices, though gains got capped on concern over key economic data due from
China.
• FTSE index fell on Monday as energy group Centrica PLC lowered its earnings forecast and after HSBC Holdings reported a lower underlying first-quarter profit.
• Dow Jones rose on Monday as recovery in commodity prices helped to lift the stocks of energy and materials companies.
INDIAN EQUITY MARKET
• At 9.00 am in the morning, the SGX Nifty was trading 0.04% higher.
• Indian stock indices ended volatile session flat on Monday as investors kept position light due to sharp recovery in the prices of crude oil.
• Shares of oil retailers declined on worries over rising under-recoveries of the companies on retail fuel sale with HPCL, IOC and BPCL falling 1-3%.
• Auto and banking stocks were the worst hit due to profit booking with Maruti Suzuki, Tata Motors, Bajaj Auto, Axis Bank and PNB ending down around 2% each.
• HUL gained 3% after the company posted better than expected Jan-Mar net profit.
• Eicher Motors shares surged 12% as the company's Jan-Mar consolidated net profit rose 82%.
• Piramal Healthcare shares ended nearly 9% down on the company's decision to enter the financial services sector.
• Jyothy Lab declined 4% on concerns the acquisition of loss-making Henkel India may weigh on the balance sheet of the company.
DOMESTIC NEWS
• IMF hails moves by India's central bank to hike interest rates in an attempt to curb
the rising cost of living.
• OECD says that India's economy is likely to lose pace even as China and the US are expected to see good expansion in the coming months.
• Government sets a target to raise Rs.40000 cr through disinvestment in FY12.
• RBI Governor says that it is unrealistic to expect the central bank to deliver on an
inflation target in the short-term given that the drivers of inflation largely emanate
from supply-side.
• An EPFO official says it would not be possible to retain the 9.5% rate paid for 2010-11, this year.
• India's domestic passenger car sales growth moderated to 13.2% on year to 162,825 vehicles in April, the slowest in 2 years, and 16.2% lower than the 194,199 units sold a month ago.
• Assocham urges government not to levy the proposed 5% countervailing duty (CVD) on coal as it may impact power tariff.
• SAIL asks its subsidiary, Maharashtra Elektrosmelt, to raise ferro-alloys production in line with the growing requirement of SAIL's steel plants.
• According to SEBI, Corporate India raised Rs.67608.5cr through 91 issues in 2010-11, as against Rs.57555.1cr through 76 issues in 2009-10.
• US-based iGate Corp increases its shareholding in Patni Computer to 81.29% by acquiring 20% more stake in the company through an open offer.
• Jyothy Labs offers to acquire up to 20% more stake in Henkel India in an open offer at Rs.41.20 per share.
• CRISIL says the microfinance institutions sector is likely to see consolidation over the medium term, since small players may find it difficult to operate in a strict regulatory environment.
DERIVATIVES MARKET
• Nifty May futures (near future) closed up against the spot index with around 8 point premium; it however witnessed 0.39 mn decrease in open interest (OI).
• Put Call Ratio (OI) rose to 0.97 on May 9 from 0.94 on May 6.
• Nifty 6000 May Call strike continued to witness the highest OI.
• Nifty 5500 May Put strike witnessed the highest OI.
• India VIX (volatility index based on the Nifty 50 Index Option prices) rose to 21.50% on May 9 from 20.97% on May 6.
INDIAN DEBT MARKET
• Call rates ended at 7.40-7.50% on Monday as banks borrowed funds to cover their cash reserve requirements for the new Reporting Fortnight in the first week itself.
• Banks borrowed Rs.64305 cr from RBI’s repo window vs Rs.29245 cr on Friday.
• The RBI has discontinued the second set of daily LAF auctions.
• Banks can now also borrow from the Marginal Standing Facility, introduced by the RBI to help banks meet their fund needs when liquidity is tight.
• Gilt yields rose sharply on Monday as the recovery in crude oil worsened sentiment ahead of a likely hike in local fuel prices, which is expected to push inflation higher.
• The benchmark 7.80%, 2021 bond ended at Rs.96.90 or 8.2624% yield, down from Rs.97.48 or 8.1741% yield on Friday.
• Local oil marketing companies have been mulling a fuel price hike as the relentless surge in global crude prices was resulting in huge revenue losses.
• After market hours, RBI announced the auction of 7.83%, 2018 paper worth Rs.4000 cr; 7.80%, 2021 paper worth Rs.5000 cr and 8.30%, 2040 paper worth Rs.3000 cr on May 13.
Currency Overview
• The Indian rupee rose against the US dollar on Monday as a slight rise in the euro and expectation of robust dollar inflows in Power Finance Corp’s FPO prompted dollar sales; sporadic dollar sales by exporters also supported the rupee's rise.
• But persistent dollar demand from oil importers weighed on the rupee.
Commodity Overview
• Crude oil prices rose $5.37 to settle at $102.55 a barrel on the NYMEX on news that the CME Group is raising the margin requirement for a wide variety of crude-oil contracts.
• Gold prices rose as some weakness in the U.S. dollar and concerns over European debt woes lured investors back to it.
INTERNATIONAL NEWS
• US Treasury Secretary says that China was making progress but needed to change its economic growth model.
• European Union is looking to lower interest rates on bailout loans to Greece and Ireland and is working on a second rescue for Athens in an effort to prevent a disorderly debt restructuring.
• S&P cut Greece's rating to B from BB- over concerns that a debt restructuring is increasingly likely.
• Bank of China receives regulatory approval to issue up to 32bn yuan of subordinate debt to improve its capital structure.
Wednesday, May 4, 2011
Monetary Policy Announcement by RBI
Repo Rate, a Policy Rate, is increased by 50 basis points to 7.25% with immediate effect.
Reverse Repo Rate is increased by 50 basis points to 6.25% with immediate effect.
In line with the Deepak Mohanty Committee’s recommendations, the RBI has introduced a new Marginal Standing Facility (MSF) for banks to borrow up to 1% of their NDTL at 100 basis points over the new Repo Rate. This may enable banks who do not have surplus SLR to borrow over-night money from the RBI at 8.25% pa.
Savings Rate has been hiked from 3.5% pa to 4% pa
Both CRR and Bank Rate has been left unchanged at 6%
Market Reaction:
Market participants found the RBI’s tone and language a bit hawkish than past credit policy tones. Clearly, for the RBI, the priority is to rein in headline inflation as early as they can even at the cost of lower growth going forward. This is a marked departure from their previous Monetary Policy stance of supporting growth while containing inflationary pressures. The RBI has acknowledged that apart from higher global commodity prices, the single important risk may be higher oil prices that will test the assumptions of the budget estimates for the FY2011-12. The RBI is cognizant of the fact that if global commodity prices remain at current level for a longer period, then it will have significant negative implications on government finances going forward.
Given this backdrop, the bond market’s initial reaction was cautious. The benchmark 10Y yield hardened from 8.14% pa before the Policy to 8.21% pa after the Policy. The 5Y OIS level also hardened by 10 basis points to 8.35% pa.
We expect bond prices to remain range-bound with a declining bias in the near-term as market participants may await a revision in the fuel prices and its impact on headline inflation. A lot depends on the trajectory of economic growth and the monsoon, going forward. Although there is perception of a slowdown in the overall economy, market participants are not sure if it is a mid-cycle slowdown, which may result in more rate hikes later when economy accelerates or a cyclical slowdown, which may result in the rates being closer to their peak levels.
Reverse Repo Rate is increased by 50 basis points to 6.25% with immediate effect.
In line with the Deepak Mohanty Committee’s recommendations, the RBI has introduced a new Marginal Standing Facility (MSF) for banks to borrow up to 1% of their NDTL at 100 basis points over the new Repo Rate. This may enable banks who do not have surplus SLR to borrow over-night money from the RBI at 8.25% pa.
Savings Rate has been hiked from 3.5% pa to 4% pa
Both CRR and Bank Rate has been left unchanged at 6%
Market Reaction:
Market participants found the RBI’s tone and language a bit hawkish than past credit policy tones. Clearly, for the RBI, the priority is to rein in headline inflation as early as they can even at the cost of lower growth going forward. This is a marked departure from their previous Monetary Policy stance of supporting growth while containing inflationary pressures. The RBI has acknowledged that apart from higher global commodity prices, the single important risk may be higher oil prices that will test the assumptions of the budget estimates for the FY2011-12. The RBI is cognizant of the fact that if global commodity prices remain at current level for a longer period, then it will have significant negative implications on government finances going forward.
Given this backdrop, the bond market’s initial reaction was cautious. The benchmark 10Y yield hardened from 8.14% pa before the Policy to 8.21% pa after the Policy. The 5Y OIS level also hardened by 10 basis points to 8.35% pa.
We expect bond prices to remain range-bound with a declining bias in the near-term as market participants may await a revision in the fuel prices and its impact on headline inflation. A lot depends on the trajectory of economic growth and the monsoon, going forward. Although there is perception of a slowdown in the overall economy, market participants are not sure if it is a mid-cycle slowdown, which may result in more rate hikes later when economy accelerates or a cyclical slowdown, which may result in the rates being closer to their peak levels.
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