| FAVOURING BULLS | | | | Consolidation in the last few sessions | | | FAVOURING BEARS | | | | Weak market breadth | | | | | | | STOCKS TO LOOKOUT FOR | | | | Ranbaxy Laboratories’ (Rs.368.15, Buy) subsidiary Terapia has got manufacturing and import authorization that will strengthen its position in the European market.
| | | Gail India Ltd (Rs.273.15, Buy) will invest as much as $2.7 billion to expand and further strengthen its pipeline network. | | |
| MARKET - WHAT TO EXPECT? |
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The market was volatile yesterday with a sudden sell-off gripping the market in the last 50 minutes of trade as February 2007 derivative contracts expired. The market had lost ground soon after a strong opening that was triggered by firm Asian markets. Cement, auto, banking and pharma stocks weakened in the session. The Sensex touched a intraday low of 13,978.05 ending at 14,021.31, lower by 167.68 points. The sell off gathered pace as foreign funds resorted to reshuffling their investment portfolios. Investors were also settling their positions following the end of February 2007 derivative contracts. Markets can see a recovery as value buying cannot be ruled out. We advocate caution ahead of the budget and expect volatility to continue. |
| US MARKET |
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| The US markets had a mixed close as geopolitical pressure mounted. The Dow Jones Industrial Average fell as Iran refused to stop its uranium enrichment program, while the Nasdaq Composite Index ended higher on buoyant demand for semiconductors. |
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| MARKET PERFORMANCE |
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| Index | Country | Current Value | Change | Change
(in %) | | Indian Market | | Sensex | India | 14021.31 | (167.18) | (1.18) | | Nifty | India | 4040.00 | (56.20) | (1.37) | | US Markets | | Dow Jones Industrial Average | America | 12686.02 | (52.39) | (0.41) | | Nasdaq Composite | America | 2524.94 | 6.52 | 0.26 | | Nasdaq 100 | America | 1846.34 | 7.21 | 0.39 | | S & P 500 | America | 1456.38 | (1.25) | (0.09) | | European Markets | | CAC 40 | France | 5707.86 | 13.30 | 0.23 | | DAX | Germany | 6973.73 | 32.07 | 0.46 | | FTSE 100 | United Kingdom | 6380.90 | 23.80 | 0.37 | | Asian Markets | | Jakarta Composite | Indonesia | 1808.44 | (8.12) | (0.45) | | Nikkei 225 | Japan | 18108.79 | 195.58 | 1.09 | | Straits Times | Singapore | 3288.85 | (4.76) | (0.14) | | KOSPI | South Korea | 1465.41 | 14.03 | 0.97 | | Taiwan Weighted | Taiwan | 7809.45 | 0.00 | 0.00 | | SET Composite | Thailand | 693.61 | 1.23 | 0.18 | |
| Source: Bloomberg |
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| Market | Advances | Advance % to Total | Declines | Decline % to Total | Unchanged | Unchanged % to Total | Total | | BSE | 817 | 30.4 | 1805 | 67.3 | 62 | 2.3 | 2684 | | NSE | 250 | 24.1 | 762 | 73.3 | 27 | 2.6 | 1039 | |
| Source: BSE & NSE |
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| FII Investment
(In Rs. Crore) | Gross Purchases | Gross Sales | Net Investment | | 22-Feb-07 | 3,131.0 | 3,566.5 | (435.4) | |
| Source: NSE |
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| Indian ADRs Company | ADR Price
(US $)
| Change (In %) | Issue Price (US $) | | DR REDDY (RDY) | 16.30 | (3.8) | 10.00 | | HDFC BANK (HDB) | 70.86 | (0.9) | 13.80 | | ICICI BANK (IBN) | 44.02 | (2.9) | 11.00 | | INFOSYS TECH. (INFY) | 118.40 | (1.0) | 17.00 | | MTNL (MTE) | 6.35 | (0.9) | 7.50 | | PATNI COMPUTERS (PTI) | 22.47 | (1.9) | 20.30 | | REDIFF.COM (REDF) | 19.16 | (1.7) | 12.00 | | SATYAM COMP (SAY) | 46.48 | (0.3) | 9.70 | | SATYAM INFOWAY (SIFY) | 9.30 | (0.0) | 4.50 | | TATA MOTORS (TTM) | 19.38 | (1.8) | 8.70 | | VSNL (VSL) | 18.78 | (2.2) | 17.90 | | WIPRO (WIT) | 17.98 | (1.5) | 41.20 | |
| Source: Nasdaq |
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| NEWS |
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| • | Jindal Saw Ltd (Rs.507) has bagged an order worth $355 million. The order is for the supply of saw pipes for the U.S. market.
| | • | India Cements Ltd (Rs.190.70) will be considering the merger of associate company Visaka Cement Industry Ltd with itself in the end of this month.
| | • | Ranbaxy Laboratories Ltd’s (Rs.368.15) Romanian subsidiary Terapia has received manufacturing and import authorization from the country''s regulatory agencies as per European Union norms. Terapia-Ranbaxy has been given a go ahead for batch testing and release for products manufactured outside EU following the inspection carried out by Romanian Regulatory Agency. The company is mulling transforming Terapia-Ranbaxy in to a regional hub for its operations in Europe. The authorization will strengthen Ranbaxy’s position in the European market.
| | • | Karuturi Networks Ltd (Rs.248.75) is considering issuing bonus shares in the ratio of 1:1 to shareholders. A board meeting will be convened on March 1st for the approval of the issue.
| | • | Dabur Foods Ltd, the subsidiary of Dabur India Ltd (RS.100.85) will increase prices of its Real fruit juices by up to 6 percent. | |
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| BOARD MEETINGS |
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| Scrip Name | Meeting Date | Purpose | | AstraZeneca Pharma India Ltd | 23-Feb-2007 | Dividend | | Dredging Corporation of India Ltd | 23-Feb-2007 | Dividend | | Henkel India Ltd | 23-Feb-2007 | Results | | Steelco Gujarat Ltd | 23-Feb-2007 | Results | |
| Source: BSE |
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| DERIVATIVES |
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The March futures are trading at a premium of 24 points at 4,064 over the spot close of 4,040 after the expiry of February contracts yesterday.
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| Nifty Futures as on 22-Feb-2007 | | Expiry Date | High Price | Low Price | Prev Close | Close | Number of contracts traded | Turnover
(In Rs. crores) | | 22-Feb-07 | 4132.95 | 4037.15 | 4054.50 | 4040.00 | 245,734 | 10,075 | | 29-Mar-07 | 4129.00 | 4052.00 | 4066.65 | 4066.65 | 192,279 | 7,882 | | 26-Apr-07 | 4132.95 | 4060.00 | 4081.10 | 4081.10 | 994 | 41 | |
| Source: NSE |
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| TRADE STATISTICS FOR 22-Feb-2007 | | Product | No. of contracts | Turnover
(In Crores)* | | Index Futures | 441,079 | 18,111 | | Stock Futures | 829,399 | 30,266 | | Index Options | 142,078 | 5,893 | | Stock Options | 27,178 | 1,075 | | Interest Futures | 0 | 0 | | F&O Total | 1,439,734 | 55,346 | | *Notional Turnover in case of options | |
| Source: NSE |
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| FII DERIVATIVES STATISTICS FOR 22-Feb-2007 | | Product | Net Investment
(In Crores) | Open Interest
(In Crores) | | Index Futures | (348) | 10,919 | | Index Options | 530 | 4,708 | | Stock Futures | (104) | 15,426 | | Stock Options | (2) | 10 | | Total | 77 | 31,063 | | *Notional Turnover in case of options | |
| Source: NSE |
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RESULTS
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| Sr.
No | Company Name | Scrip
Code | Net Sales (Rs in Crore) | PAT(Rs in Crore) | | Q3FY
O7 | Q3FY
06 | Change
% | Q3FY
O7 | Q3FY
06 | Change
% | | 1 | Videocon Industries Ltd | 511389 | 2105.59 | 1689.47 | 24.6 | 206.16 | 205.14 | 0.5 | | 2 | RS Software India Ltd | 517447 | 24.60 | 22.44 | 9.6 | 2.37 | 1.38 | 71.7 | | 3 | Clariant Chemicals India Ltd | 506390 | 228.20 | 95.81 | 138.2 | 7.40 | 1.32 | 460.6 | | 4 | Wockhardt Ltd | 532300 | 250.00 | 230.50 | 8.5 | 48.50 | 51.40 | (5.6) | | NA = Not Applicable | | | Source – BSE & CMIE | |
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| TECHNICAL ANALYSIS |
| The Advance / Declines continue to be weak and remain a concern. We expect volatility to continue with support for the Sensex coming in at 13,904 on the downside, while the Sensex could see resistance at 14,212 on the upside.
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| Note The above recommendations are valid only for the day and have no correlation to our medium/long term perspective. Disclaimer: This report is prepared exclusively for Reliance Money by SAANS. The information and opinions contained in the document have been compiled from sources believed to be reliable. SAANS does not warrant its accuracy, completeness and correctness. Use of data and information contained in this report is at your own risk. This document is not, and should not be construed as, an offer to sell or solicitation to buy any securities. SAANS and its affiliates and/or their officers, directors and employees may have positions in any companies/shares mentioned in this document (or in any related investment) and may from time to time add to or dispose of any such companies/shares (or investment).
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| Reliance Disclaimer |
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