Stocks
BSE Sensex, Nifty under selling pressure: Weekly Market Report

The Nifty has to rally above 6,030 for a fresh upmove to start. A decline below 5,930 will trigger further selling

The market ended lower in the week as subdued macro-economic data overshadowed the upbeat guidance from IT major Infosys. Inflation data for December, which will be announced on Monday, and corporate results for the December quarter will drive the market in the week ahead.

 

The Sensex closed the week down 120 points (0.61%) at 19,664 and the Nifty finished at 5,951, a cut of 65 points (1.08%). The market is under selling pressure. The Nifty has to rally above 6,030 for a fresh upmove to start. A decline below 5,930 will trigger further selling.

 

The market settled in the negative on Monday on subdued global cues. The benchmarks settled in the positive on Tuesday on late buying in realty, FMCG and healthcare sectors. The market settled lower on Wednesday on the geopolitical tensions between India and Pakistan after brutal killing of two Indian soldiers by Pakistani troops along the Line of Control in Poonch district of Jammu and Kashmir the previous day.

 

The indices settled marginally lower on Thursday on nervousness a day ahead of the official kick-off of the December quarter results season. A contraction in industrial output for the month of November and lower exports in December pulled the market down on Friday.

 

BSE IT (up 8%) and BSE TECk (up 6%) were the top sectoral gainers while BSE Capital Goods (down 5%) and BSE Consumer Durables (down 4%) were the biggest losers in the week.

 

Infosys (up 16%) led the Sensex pack on its upbeat revenue guidance for FY13. Other top gainers on the benchmark were Tata Motors (up 5%), Wipro (up 4%), ONGC (up 3%) and Maruti Suzuki (up 1%). The key losers were Hindustan Unilever (down 7%), BHEL, Larsen & Toubro, Jindal Steel & Power (down 6% each) and Hindalco Industries (down 4%).

 

The Nifty leaders were Infosys (up 15%), Tata Motors (up 5%), Wipro (up 4%), ONGC (up 3%) and HCL Technologies (up 2%). The chief losers were Ambuja Cements (down 10%), Jaiprakash Associates, UltraTech Cement (down 8% each), HUL and BHEL (down 7% each).

 

Declining for the eighth month in row, India’s exports contracted by 1.92% in December 2012 to $24.8 billion. Imports, on the other hand, grew by 6.26% to $42.5 billion in the same month, widening the country’s trade deficit to $17.6 billion in December.

 

Industrial production declined 0.1% in November 2012, government data released on Friday showed. Meanwhile, the government revised upwards industrial production growth for October 2012 to 8.34% from 8.21% reported earlier.

 

Railway minister Pawan Kumar Bansal on Wednesday a hike in passenger fares ranging from 2 paise per km to 10 paise per km with effective from the midnight of 21 January.  The government is unlikely to give more funds to the Railways and several modernisation projects can be undertaken only if the Railways can generate enough revenues, the minister said while justifying the hike.

 

Fitch Ratings on Tuesday reiterated its negative outlook on India's sovereign rating and said it is worried more about the country's deteriorating fiscal outlook than a slowdown in economic growth and price pressures. Inflation and growth are likely to stabilize in the near term, but India's widening current-account and fiscal deficits have become a greater concern, it added.

 

In international news, the European Central Bank held interest rates at a record low of 0.75% and announced no new stimulus measures on Thursday. The Bank of England also left its base interest rate and its monetary stimulus program unchanged, as widely anticipated.

 

The Japanese government said on Friday, it will spend 10.3 trillion yen ($116 billion) to boost growth in prime minister Shinzo Abe's first major policy initiative. Around 3.8 trillion yen will be for disaster prevention and reconstruction, with 3.1 trillion yen directed to stimulating private investment and other measures.

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CMC Q3 profit jumps by 47% to Rs61.06 crore

“We have seen strong growth in systems integration and IT-enable services (businesses),” CMC chief executive officer and managing director R Ramanan told reporters

New Delhi: IT solutions provider CMC reported 47.59% increase in consolidated net profit at Rs61.06 crore for the quarter ended 31 December 2012, driven by all-round growth across sectors and geographies, reports PTI.

 

The Tata group firm had posted a net profit of Rs41.37 crore during the same period last financial year.

 

Total income from operations for the company rose 24.43% at Rs492.97 crore the second quarter of 2012-13 compared to Rs396.17 crore in the same period last year.

 

“We have maintained our growth momentum in domestic and international market. We have seen strong growth in systems integration (SI) and IT-enable services (businesses),” CMC chief executive officer and managing director R Ramanan told PTI.

 

SI business contributed Rs315.7 crore, while IT enabled services accounted for Rs74.56 crore to the revenues during the reported quarter.

 

Revenues from customer services business stood at Rs78.07 crore, while those from education & training and Special Economic Zone (SEZ) were at Rs14.40 crore and Rs10.19 crore, respectively.

 

International revenues contributed 68.3% of the company's total sales.

 

The company added 26 new clients across geographies during the quarter, Ramanan added.

 

“There was broad-based growth in Indian and international markets. International business share stood at 68.3% during Q3... services business share stood at 94.3% in the quarter,” Ramanan said.

 

“During the quarter, CMC has a net employee addition of 473, taking the total headcount to 11,224,” he added.

 

Asked about the demand environment, Ramanan said the company expects to see “increased spend in domestic market, driven especially by the government sector.”

 

Set up in 1975, CMC is a subsidiary of country’s largest software services company Tata Consultancy Service (TCS).

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Government nod to 14 FDI proposals worth over Rs1,300 crore

The proposal of Mumbai-based Hindustan Port to induct foreign funds worth Rs440 crore for investment in downstream companies was among those cleared by FIPB


New Delhi: The government said it has approved 14 FDI proposals worth about Rs1,311 crore including that of Hindustan Port, reports PTI.

 

“Based on the recommendations of FIPB in its meeting held on 21st December, government has approved 14 proposals of foreign direct investment amounting to Rs1,310.60 crore approximately,” the finance ministry said in a statement.

 

The proposal of Mumbai-based Hindustan Port to induct foreign funds worth Rs440 crore for investment in downstream companies was among those cleared by FIPB.

 

The Foreign Investment Promotion Board, headed by economic affairs secretary Arvind Mayaram, has also allowed pharma firm Aanhaneya Lifecare to raise funds worth Rs 405 crore through issue of foreign currency convertible bonds.

 

Besides, the board has allowed Bangalore-based Syngene International to induct foreign equity of Rs125 crore.

 

US-based Gavis Pharma LLC can also invest Rs73.75 crore in an Indian company engaged in the business of manufacture of injectable products.

 

Other major proposals which were approved by the FIPB include Excedo Reality Fund-I to accept NRI investment worth Rs210 crore, and that of Punjab-based pharma company Saurav Chemicals Ltd to issue fresh equity shares valued Rs14.85 crore to foreign company.

 

Other proposals approved include that of Ordain HealthCare Global for acquisition of manufacturing facility for its group pharma company and that of Arshiya International to issue warrants.

 

FIPB has deferred six and rejected three proposals. The proposals which were deferred include that of Mahindra & Mahindra to provide service support for radar systems and defence electronic systems.

 

Those rejected include proposal of Mumbai-based Fullife Healthcare for induction of foreign equity.

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