stocks weekly newsletter1june 2013 01 06 2013

7/27/2019 Stocks Weekly Newsletter1june 2013 01 06 2013

1/13

Weekly Newsletter

STOCKS- 1 June 2013


2/13

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INDEX

1. MARKET OUTLOOK

2. MARKET GAINERS & LOSERS

3. INDEX WATCH

4. GLOBAL MARKET INDICES

5. INSTITUTIONAL TRADING ACTIVE


3/13

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Market Outlook

The Sensex closed 2.25% or 455.1 points Negative at 19760.30 while the broader50-share Nifty index up 2.26% or 138.1 points to 5985.95. On a weekly basis,

This weeks market closed little positive after lest weeks big fall. The Sensexgain 0.28% or 55.97points and Nifty up 0.04% or 2.40 points.

Among largecaps Tatamotors,sunpharma, heromotoco,coalindia, bhel,powergrid, siemens,itc,ntpc, infy, reliance, sesagoa are moved positive 8.75% to

2.34% of weekly basis. Cipla,dlf, idfc, tatasteel, bankbaroda, gail, sbin, hindalco,lupin, maruti, icicibank, relinfra, Jpassociat,lt, Ranbaxy are closed negative

9.297% to 3.68% of weekly basis

NSE's debt trading platform gets tepid responseThe country's first dedicated debt-trading platform launched by the National

Stock Exchange (NSE) this month hasn't been able to create much of a buzz.While other exchanges like the Bombay Stock Exchange (BSE) and MCX-SX are

in the process of launching similar platforns, low volumes and lack of regulatory

nods mean the segment has yet to overcome a few hurdles before it truly takes offin India. CNBC-TV18s Sajeet Manghat and Sunanda Jayaseelan report.

Prime Minister Manmohan Singh said, "A weakness in our financial systemrelates to the market of corporate debt. While the market for government debt is

very large, the market for corporate debt is yet to develop as it should."

And the PM is not alone. Most veterans at North Block acknowledge the need for

a vibrant debt market. Yet, there seems to be no movement to make the segmentinvestor friendly.

Earlier this month the NSE launched its debt market segment, and even thoughthese are early days, the initial response has been muted. Exchanges and marketparticipants attribute the low trading volumes to a number of reasons.

To begin with, lack of institutional investor participation. At present, settlement

guarantee is provided only to the retail segment, not to institutional investors whoargue they have no cushion in case of the other side defaulting in settling

payments.


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Ashishkumar Chauhan, MD & CEO, BSE said, Settlement guarantee willprovide an anonymous market, otherwise you end up doing one on one OTC kind

of situation where you want to know who you have to deal with. If you doanonymous transaction with no settlement guarantee, then there is settlement risk.

But even as Sebi mulls over whether the settlement guarantee should be providedto institutional investors as well, it is faced with another issue: - the margin

requirement.

While Sebi has asked for 10% margin in case of securities with a rating of AA orabove; and 25% for all other securities, it is finding it difficult to impose this on

the institutions, considering institutions in India work on thin margins.

Chauhan says, Margins have to be such that it can take care of the risk and notso much that it prohibits efficient market activities.

Last but not least, the current framework only allows banks to come on theplatform while primary dealers, mutual funds and insurance companies cannot

participate directly in the debt segment. With regulatory nods needed for that tobecome a reality, exchanges are hoping Sebi and the finance ministry will work

quickly towards a more enabling framework to perk up a hitherto tepid debtmarket platform .

RBI alert: What to check before making depositswith NBFCsIn the wake of Sarada chit fund scam in West Bengal, the Reserve Bank of India(RBI) on Friday alerted depositors of certain customary safeguards

before parking their funds in any scheme run by non-banking finance companies(NBFCs).

"The Reserve Bank has been, on several occasions in the past, through pressreleases and through its outreach and sensitisation programmes conducted by its

regional offices, cautioning the general public not to fall prey to fictitious offerspromising unsustainable returns by individuals, unincorporated bodies and

companies," RBI said in a release issued on Friday.


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Govt clears 8 FDI proposals worth Rs 696 cr

The government today said it has approved eight FDI proposals worth Rs 696

crore, including those of ACME Solar Energy, GETIT Infoservices and McKinsey& Company.

The Foreign Investment Promotion Board (FIPB) cleared the proposal of ACMESolar Energy to bring in foreign investment worth Rs 275 crore, the Finance

Ministry said in a statement.

Besides, FIPB cleared GETIT Infoservices' proposal to receive foreign investmentworth Rs 216 crore for carrying out the publishing business.

It also approved France's GeoPost S.A.'s proposal to acquire shares of an Indian

company engaged in commercial express and parcel delivery business worth Rs179 crore.

The meeting of the FIPB, headed by Economic Affairs Secretary ArvindMayaram, was held on April 12. It deferred eight proposals and rejected three.

The proposal of McKinsey & Company Inc to set up an LLP for providing

management consultancy services, entailing foreign investment of Rs 99 lakh, wasalso approved.

The other proposals cleared by the board include those of courier company DPD

Continental Ltd, Pilot Ventures Media and US-based AWS Truepower.

However, the proposal of Bangalore-based Tata Advanced Materials Ltd,

engaged in the manufacturing of defence related products, was not found to bewithin the purview of FIPB.

The company had sought post-facto approval for shares already held by NRI on

the company on portfolio basis.

The eight proposals which were deferred by the FIPB include that of Norway-based Telenor Mobile Communication to increase foreign equity from 49 per cent

to 74 percent.

The proposals rejected were those of Sunil Hitch, Triton Hotel and Karuturi

Global.


6/13

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For two other proposals - Mauritius-based Bay Capital Investment and HubertBurda Media Pvt Ltd - the FIPB has reserved the decision and it would be

communicated separately.

Revised petrol, diesel prices in metros effectivemidnight

Oil marketing companies have increased both petrol and diesel prices by 75 paiseper litre and 50 paise per litre respectively effective from midnight today

following sharp depreciation in rupee, Indian Oil Corp said today.

This is the first petrol hike in 3 months and fifth hike in diesel price since the fuel

was partially deregulated by government in January.

Petrol prices were last increased on March 1. Since then, petrol prices have beencut four times on falling global oil prices. Petrol prices were cut by Rs three per

litre on May 1, Rs 1.20 on April 16, Re one on April 1 and Rs 2.40 on March 16.

Diesel price was last hiked on May 11, by 90 paisa a litre after the companiesskipped raising rates in April to avoid troubles for the government during the

Budget session of Parliament. This was the fifth diesel price hike since thegovernment deregulated diesel price in January. Despite these previous prices

hikes oil firms are losing Rs 4.87 per litre, IOC said.

RBI to clarify new banking licence queries on June 3The Reserve Bank of India (RBI) will issue clarifications on Monday, June 3

against queries sent by different external parties in respect of new private bankinglicence.

Earlier, RBI had issued guidelines for licensing of new banks on February 22,

2013. Following issue of the guidelines, the central bank received several queriesregarding the guidelines.

"To comprehensively reply to all queries, RBI issued a press release on March 7,2013 asking that queries on the guidelines may be sent to the Reserve Bank by

April 10, 2013 and that clarifications would be posted on its website on June 03,2013," it said in a release issued on Friday.

Speculations are rife that RBI may issue around three-to- four banking licences.

In 2003-04, it had granted licences to Yes Bank and Kotak Mahindra Bankto offer banking services. This time, companies like L&T Finance , Mahindra


7/13

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Finance , Shriram Captial, Tata Capital, Bajaj Finance , according to a marketbuzz, are the potential candidates to apply for banking licence.

Entities both from private and public sectors shall be eligible to set up a bankthrough a wholly-owned non-operative financial holding company (NOFHC). A

business group, which is keen on applying for a license should have a minimumpaid up equity capital of Rs 500 crore, states RBI guidelines.

At the start of banking operations, NOFHC should hold a minimum of 40 per cent

of the equity capital of the bank with a lock-in period of five years. Later, it has tobe brought down to 15 percent within 12 year from that onwards.

The banking regulator had put a stricter condition of having 25 percent of its

branches in unbanked rural areas with population upto 9,999. Many believe, for anew banking entity, it will be stumbling block as the brick and mortar model

especially in rural areas take time to turn profitable.

"For banking licence, RBI will prioritise the brand factor first. Licence cannot be

given to any corporate without proper credential. In that case, it will be misused.Companies may use their banking network to support their group company

businesses. However, nothing is finalised," a senior RBI official had toldmoneycontrol.com on condition of anonymity.


8/13

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MARKET GAINERS AND LOSERSTop S&P CNX Nifty Gainers

GAINERS CLOSE PRICE PREVIOUS PRICE %CHANGETATAMOTORS 313.3 288.1 8.747

SUNPHARMA 1044.1 968.85 7.7669

HERO MOTOCO 1736.35 1633.35 6.3061

COAL INDIA 324.7 310.15 4.6913

BHEL 200.55 192.55 4.1548

Top S&P CNX Nifty LoserLOSERS CLOSE PRICE PREVIOUS PRICE %CHANGE

CIPLA 370.55 408.5 -9.2901

DLF 194.7 211.9 -8.117

IDFC 144.7 155.25 -6.7955

TATASTEEL 291.75 313 -6.7891

BANKBARODA 651.65 691.5 -5.7628


9/13

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INDEX WATCH WEEKLYINDEX

OPEN HIGH LOW CLOSE CHANGE ROC(%)S&P CNX NIFTY 5989.4 6133.75 5975.55 5985.95 2.4004 0.0401

CNX PHARMA 3655.4 3663.35 3569.95 3624.45 20.2 0.5604

S&P CNX 500 4690.45 4789.25 4675.8 4681.45 -4.1499 -0.0886

CNX 100 5917.3 6048.3 5904.4 5912.6 0.9502 0.0161

CNX IT 6322.55 6492.8 6298.65 6472.05 141.25 2.2312

CNX MIDCAP 7821.55 7982.5 7814.4 7821.8 1.5996 0.0205

CNX BANK NIFTY 12751.5 13016.45 12453.15 12475.65 -293.699 -2.3

CNX NIFTY JUNIOR 12336.35 12551.1 12277.4 12312.05 -13.75 -0.1116

CNX AUTO 4629.85 4869.3 4601.75 4769.05 124.0498 2.6706


10/13


11/13

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Asian Markets as on 31-05-2013INDICES

OPEN HIGH LOW CLOSE CHANGE ROC(%HANG SENG 22582.55 22582.55 22346.18 22392.16 -92.1504 -0.409

NIKKEI 225 13804.23 13916.56 13681.39 13774.54 185.5098 1.365

KOSPI 2009.25 2013.29 2000.82 2001.05 0.9501 0.047

SHANGHAI 2320.74 2325.53 2299.37 2300.59 -17.1599 -0.740

STRAITS TIMES 3329.51 3334.5 3304.96 3311.37 -24.6399 -0.738


12/13

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INSTITUTIONAL TRADING ACTIVEFII Trading Activity (BSE & NSE) in croreCATERGORY DATE BUY VALUE SELL VALUE NET VALUE

FII 31-05-2013 5403.98 5908 -504.02

DII Trading Activity (BSE & NSE) in croreCATERGORY DATE BUY VALUE SELL VALUE NET VALUE

DII 31-05-2013 1444.31 1241.2 203.11


13/13

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DisclaimerThe recommendations made herein do not constitute an offer to sell or asolicitation to buy any securities mentioned. Readers using the information

contained herein are solely responsible for their actions. The information and

views contained herein are believed to be reliable but no responsibility or

liability is accepted for errors of facts and opinions. Editors may or may not have

trading or investment positions in the securities mentioned herein.

Reported By DEBABRATA BHATTACHARJEE (Senior Equity Analyst)

stocks weekly newsletter1june 2013 01 06 2013

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