Morning Notes 5667
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Morning Notes 5667. Date: 24.09.2013 For Internal circulation only GRA GLOBAL NEWS KEY INDICES Indian Markets Aussie Dollar Trades near Five-Year Low Versus Kiwi on Rate Bets Index Close Pt. Chg. Change % S&P CNX NIFTY 5889.75 -122.35 -2.04 Australia’s dollar traded 0.6 percent from an almost five- year low versus its New Zealand counterpart on bets CNX NIFTY JUNIOR 11276.20 -149.50 -1.31 interest rates at the nations’ central banks will diverge. CNX 100 5755.35 -113.20 -1.93 Traders see 50 percent odds that the Reserve Bank of CNX METAL 2146.10 +3.85 0.18 Australia will reduce its cash target rate by April next year, interest-rate swaps data compiled by Bloomberg show. S&P CNX 500 4482.00 -78.10 -1.71 They see an 87 percent chance the Reserve Bank of New CNX MIDCAP 7016.85 -68.50 -0.97 Zealand will raise borrowing costs in the same period. The NIFTY MIDCAP 50 1905.90 -26.00 -1.35 Aussie held its first gain in three days against the greenback as investors ponder whether the Federal Reserve will start SENSEX 19900.96 -362.75 -1.79 to taper stimulus that has weighed on the U.S. currency. Global Markets Asia Stocks Fall From 4-Month High amid U.S. Budget Talks Index Close Pt. Chg. Change % Asian stocks fell from a four-month high amid a political S&P 500 1701.84 -8.07 -0.47 showdown in Washington over the U.S. budget and as investors examined speeches from Federal Reserve officials NASDAQ 3765.29 -9.44 -0.25 for clues on monetary policy. Nikon Corp., a camera maker DOW JONES 15401.38 -49.71 -0.32 that gets 85 percent of its sales overseas, sank 2 percent as FTSE 6557.37 -39.06 -0.59 a stronger yen weakened the earnings prospects for exporters in Japan. Lixil Corp., a toilet maker that people DAX 8635.29 -40.44 -0.47 familiar with the matter said is in advanced talks to buy CAC 40 4172.08 -31.58 -0.75 German bathroom-fixtures company Grohe Group for more NIKKEI 14609.88 -132.54 -0.90 than 3 billion euros ($4 billion), declined 3.9 percent in Tokyo. HANG SANG 23222.79 -148.75 -0.64 STRAITS TIMES 3215.92 +1.67 0.05 U.S., Europe Stocks Drop as Banks Fall; China Shares Gain Global data recorded/updated last as on 24, Sep. 7.30 a.m. IST Stocks fell in the U.S. and Europe, led by financial shares, amid concern about weakening bank earnings and a political showdown in Washington over the budget. Commodities retreated, while Chinese equities rallied after industrial production beat estimates. The Standard & Poor’s 500 Index lost 0.5 percent to 1,701.84 at 4 p.m. The Stoxx Europe 600 Index dropped 0.5 percent. The Shanghai Composite Index jumped 1.3 percent after a two-day holiday in China. 1 We Make Investment Easier NIFTY TOP GAINERS NIFTY TOP LOSERS Indian Markets Indian Markets Change Change Company Close (%) Company Close (%) SESAGOA 183.20 2.92 BANKBARODA 509.85 -7.33 HCLTECH 1,092.05 2.85 DLF 140.85 -7.03 HINDALCO 116.00 1.80 AXISBANK 1,030.00 -6.56 HEROMOTOCO 2,007.00 1.28 INDUSINDBK 385.00 -6.44 DRREDDY 2,396.00 1.26 JPASSOCIAT 37.60 -6.12 MARKET SUMMARY The domestic market came under more selling pressure yesterday as the Sensex lost more than 360 points pulled lower by rate-sensitive stocks as mood remained weak after the new RBI governor Raghuram Rajan on Friday raised interest rates to stem surging inflation. In a surprise move, on Friday, the Reserve Bank of India (RBI) hiked the repo rate by 25 bps to 7.50% from 7.25%. Investors are worried over further rate hike in interest rates as the RBI may sacrifice languishing economic growth for controlling persistent inflation. Mixed cues from Asian and European markets also affected domestic sentiment. Indian stocks fell for the second straight day yesterday, 23 September 2013. Most pharma stocks declined. PSU banking major State Bank of India dropped 5.84%, with the stock extending intraday losses. The state-run bank on 18 September 2013 said it has raised the base rate by 10 basis points (bps) to 9.8% per annum (pa) from 9.7% and the benchmark prime lending rate by 10 bps to 14.55% from 14.45% with effect from 19 September 2013. The bank also raised interest rates for retail term deposits. Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank shed 4.03% to 9.97%. Among private bank stocks, ICICI Bank was down 4.49%. HDFC Bank declined 2.74% to Rs 641, off the day's low of Rs 633. The BSE Sensex settled at 19,900.96, down by 362.75 points or by 1.79%, and the NSE Nifty closed at 5,889.75, down by 122.35 points or by 2.04%. The BSE Sensex touched intraday high of 20,199.81 and intraday low of 19.826.3. The NSE Nifty touched intraday high of 5,989.4 and intraday low of 5,871.4. The BSE MIDCAP settled at 5,605.06, down by 72.18 points or by 1.27%, while the BSE SMLCAP closed at 5,453.36, down by 31.94 points or by 0.58%. Banking and Realty sectors declined 4.41% and 4.33% respectively. The overall trend of the market was negative. On BSE, out of total 2525 shares traded, 1033 shares advanced, 1343 shares declined and 149 shares remained unchanged. The top losers of the BSE Sensex were State Bank of India (Rs. 1652.45, -5.39%), Oil And Natural Gas Corporation Ltd. (Rs. 276.25, -4.86%), ICICI Bank Ltd. (Rs. 944.00, - 4.39%), Maruti Suzuki India Ltd. (Rs. 1402.05, -4.37%), Larsen & Toubro Ltd. (Rs. 811.45, -4.20%). The total turnover on BSE amounted to Rs. 1779 crore yesterday. 2 We Make Investment Easier NEWS UPDATES MACRO Petrol prices may fall sharply by the end of the month . Moily had proposed detailed action plan to the PM to cut India's oil import bill by $19-20 billion. The government is worried about the impact of raising prices. "We can't ignore the message of RBI, which preferred containment of inflation over economic growth. A sharp hike in diesel price will stroke inflation and hit the common man," a senior government official reportedly. Earlier Oil Minister Veerappa Moily's proposal to the Prime Minister included a shift from monthly increase in diesel price by 50 paise to weekly price revisions. COMPANY Pawan Goenka, President-Automotive & Farm Equipment at M&M reportedly said that the auto company plans to launch 3-4 new platforms in the next three years. "Most of our launches are in the UV segment. We will expand our range to encompass both the lower and higher-end price segment of the market," Pawan Goenka reportedly said. Goenka said that the segment has witnessed de-growth. M&M is likely to hike prices for the UV and tractor segment, but the increase will be marginal in nature, reports Goenka. Dabur India announced the launch of a first-of-its-kind standalone oral health portal. The portal will be a one-stop shop for all your oral hygiene needs, right from providing natural solutions for a variety of dental problems like toothaches, cavities, bad breath, gingivitis etc, to providing information about natural kitchen ingredients for dental care, the company said. Sundaram Business Services, the BPO subsidiary of Sundaram Finance , said it had bagged five deals from Indian and Australian companies and the firm will hire 150 people in the next 12 months. "Sundaram Business Services (SBS) announced the company, which employs over 1,100 people, will be hiring another 150 people in the accounting space for its BPO facilities in Chennai and Mumbai over the next 12 months," it said in a release. The Chennai-based firm has also bagged five outsourcing deals for accounts payable solutions from companies in India and Australia, it added. SBS offers end to end accounts payable processing, which includes processing and summarising payments to vendors, as well as employee expense reimbursements. Omaxe , one of the leading real estate developers in India and premier entertainment agency Wizcraft are associating for the first time for creation of a Special Theme Zone at Omaxe Connaught Place in Greater Noida. The entertainment zone will be spread over 30,000 sq ft in the project Omaxe Connaught Place. Mohit Goel, CEO, Omaxe said, ''We are extremely happy to associate with Wizcraft to creat something innovting and the next big thing for the people of Delhi-NCR. Entertainment brings happiness and rejuvenates human mind. Tata Power , country's largest private power generator, said it has signed an agreement with EESL for energy efficiency and conservation initiatives. EESL (Energy Efficiency Services Ltd) is a joint venture of public sector units of the Ministry of Power. Tata Power and EESL have signed an MoU (Memorandum of Understanding) to carry out collaborative activities and partnerships in the field of Energy Efficiency and Demand Side Management (DSM), Tata Power said in a statement. The MOU provides a framework and strategy for collaborative activities and partnership for energy efficiency and conservation, the statement added. India’s largest multiplex chain, PVR Cinemas, is planning to invest close to Rs 100 crore in the next six months to open 50 new movie screens, especially in tier II cities.