Nifty, Sensex under pressure: Thursday Closing Report

If Nifty breaches 5,330, it may reach the level of 5,245

The market snapped its two-day winning streak and settled lower on selling pressure in FMCG, metals and consumer durables sectors. In our Tuesday’s closing report we had mentioned that the Nifty has to break out of the range of 5,300 and 5,377 for further direction. Today the index rose to 5,391 in the initial hours of trading, however, it settled lower. The market seems to be under pressure. If the Nifty breaches 5,330, the benchmark may reach the level of 5,245. The National Stock Exchange (NSE) saw a high volume of 60.46 crore shares.
The market, which opened after a day’s break, started off with meagre gains in the absence of local triggers and mixed cues from its Asian peers. The Nifty resumed trade six points up at 5,386 and the Sensex opened at 17,752, a gain of 24 points over its close on Tuesday.
The market hit its intraday high in initial trade itself wherein the Nifty rose to 5,391 and the Sensex went up to 17,764. However, the indices could not sustain their early gains as profit booking set in, pushing the market into the negative in the first hour of trade.
Meanwhile, the rupee dropped 35 paise to 56 per dollar after a gap of two weeks on persistent demand for the greenback from banks and importers. The Indian unit resumed lower at 55.88 a dollar from Tuesday’s closing level of 55.65. It moved between 55.88 and 56.04 in the morning trade, before quoting at 56 at 10.40 am.
The market was sideways in subsequent trade on the weak rupee and selling pressure in metal, FMCG and IT stocks. Reports of a ban on logos on cigarette packs by an Australian court weighed down on cigarette major ITC.
A subdued opening of the key European markets added to the woes back home, with the benchmarks drifting further southwards in noon trade. A half-hearted attempt to emerge into the positive in the post-noon session was thwarted by sellers, pushing the indices lower again.
The benchmarks dropped to their lows near 3.00pm as selling intensified. At this point, the Nifty fell to 5,357 and the Sensex retracted to 17,641.
Snapping its two-day wining streak the market settled in the red, weighed down by FMCG, metal and consumer durables stocks. The Nifty settled 17 points lower at 5,363 and the Sensex was down 71 points to 17,728.
The advance-decline ratio on the NSE was 646:786.
The broader indices outperformed the Sensex today. The BSE Mid-cap index rose 0.12% and the BSE Small-cap index gained 0.27%.
The sectoral gainers were BSE Capital Goods (up 0.82%); BSE Oil & Gas (up 0.65%); BSE Auto (up 0.58%) and BSE Healthcare (up 0.08%. The key losers were BSE Fast Moving Consumer Goods (down 2.06%); BSE Metal (down 1.44%); BSE Consumer Durables (down 1.02%); BSE Bankex (down 0.76%) and BSE PSU (down 0.57%).
The Sensex was led by Hero MotoCorp (up 2.69%); Mahindra & Mahindra (up 2.13%); Reliance Industries (up 2.04%); Cipla (up 2.01%) and Larsen & Toubro (up 1.57%). The key losers were ITC (down 3.59%); Hindalco Industries (down 2.75%); Sterlite Industries (down 2.44%); GAIL India (down 2.17%) and Tata Steel (down 1.93%).
The top two A Group gainers on the BSE were—Manappuram Finance (up 8.26%) and IDFC (up 4.14%).
The top two A Group losers on the BSE were—Jain Irrigation (down 8.78%) and Indiabulls Financial Services (down 4.59%).
The top two B Group gainers on the BSE were—Geodesic (up 19.91%) and Claris Lifesciences (down 19.69%).
The top two B Group losers on the BSE were—Mohit Industries (down 19.57%) and Koutons Retail India (down 18.67%).
The top gainers on the Nifty were IDFC (up 4.25%); Hero MotoCorp (down 2.55%); Ranbaxy Laboratories (down 2.37%); M&M (down 2.20%) and RIL (up 2.16%). The main losers were ITC (down 3.58%); Sterlite Ind (down 3.10%); Hindalco Ind (down 2.79%); Sesa Goa (down 2.74%) and SAIL (down 2.54%).
Markets in Asia closed on a mixed note on a report that China’s trade outlook for 2012 looked grim on account of the unending debt situation in Europe, which is China’s key export destination. 
The Jakarta Composite gained 0.45%; the Nikkei 225 surged 1.88%; the Straits Times added 0.03%; the Seoul Composite rose 0.05% and the Taiwan Weighted was up 0.30%. On the other hand, the Shanghai Composite declined 0.32%; the Hang Seng dropped 0.45% and the KLSE Composite fell 0.22%.
At the time of writing, the key European indices were mixed while the US stock futures were trading with marginal gains.
Back home, institutional investors—both foreign and domestic—were net buyers in the equities segment on Tuesday. While foreign institutional investors pooled in Rs258.21 crore domestic institutional investors pumped in Rs75.72 crore. 
Consumer durable major Videocon Industries has partnered with Digital Direct Broadcast (DDB) to provide a “set-top box less” experience in watching television. The technology will be available in all the new LEDs from 32 inch to 58 inch sizes.
DDB’s advanced TV technology platform will enable viewers work and save files on cloud, and allows browsing on social networking sites such as Facebook, YouTube and Twitter. Videocon gained 0.38% to close at Rs171.90 on the NSE.
IndusInd Bank on Thursday entered the prepaid forex segment by launching a card offering cash in six currencies. A customer can load an amount in the card in the country before travel and use the card to withdraw cash from automated teller machines and shopping at merchant establishments, the bank said in a statement. The stock fell 0.30% to close at Rs332 on the NSE.


ICICI Bank raises $750 million worth bonds from overseas market

The five-and-a-half-year fixed rate notes carry a coupon rate of 4.70%

New Delhi: Private sector lender ICICI Bank on Thursday said it has raised $750 million through bonds in the international market, reports PTI.


The five-and-a-half-year fixed rate notes carry a coupon rate of 4.70%, ICICI Bank said in a statement.


The bonds, the bank said, were sold through its Dubai branch. The offering, it said, had an order book of  $5.7 billion with interest from over 312 investors.


ICICI Bank has a consolidated total assets of $119 billion as on March 2012. Its presence spans around 19 countries.


Kemrock Industries: Shares plummet on poor results and pledging of shares

Kemrock Industries & Exports tumbled to nearly half its price in 10 days. Poor results, increasing finance costs and additional pledging of shares has resulted in investors dumping the stock

Kemrock Industries & Exports, which was trading at around Rs500 per share sometime back, has fallen more than half to Rs205.15 on the BSE. The company which manufactures fibre reinforced composite materials has been on a decline in the last six days, hitting its lowest in the last three years. The promoters of the company have pledged nearly 70% of their stake and the recent quarter results have seen a huge drop in sales. The poor results which were declared a couple of days back resulted in the stock hitting its lower circuit of 10% today and closed at Rs 205.15 a piece. 
The promoter of the company Kalpesh M Patel who holds 51.38 lakh shares (25% of total share capital), pledged an additional 6.97 lakh shares this month. This takes the total number of pledged shares to 36.87  to 36.22, which works out to 71% of his stake and 17.82% of the total share capital. The promoters hold a stake of 27.07% in the company as on 30 June 2012. Institutional investors hold a stake of 3.35% and retail investors hold a stake of 6.80%.
The decline in the stock price started after the recent round of pledging on 6 August 2012 where 6.97 lakh share were pledged to 12 institutions. Out of this two lakh shares were pledged to Karvy Financial Services, 1.2 lakh shares were pledged to Ess Dee Aluminium and 60,000 shares each to Bright Brothers and Sicom.
If this was not enough, the financial results for the quarter ended June 2012 sent investors over the edge. Sales declined by nearly 40% over the pervious quarter and by 45% year-on-year to Rs161.65 crore. Net profit came down by a whopping 93% y-o-y from Rs26.05 crore to Rs1.86 crore as finance costs also increased by 33% to Rs51.38 crore over the previous corresponding quarter. The operating profit margin for the earlier few quarters which was around 27%, which came down to 12%.
Established in 1981, the company manufactures and exports fibre reinforced composite products for major industrial sectors such as aerospace, defence, renewable energy, wind energy, railways, chemical processing, oil and gas, water and waste water management, infrastructure, construction, electrical and electronics, marine, telecommunications. The revenue from composite products came down by 40% over the previous quarter to Rs152.56 crore.
Venugopal K Shastri, who was a director of the company since November 2010, resigned earlier this month. 



Bosco Menezes

3 years ago

Incredible that FRP Holdings, which as per Kemrock's announcement today is going to invest 260 Million USD in the company to enable Kemrock to reach an OTS with banks, has practically NO web presence. So also it's president Mr. Earvin Richard who again has NO web presence. Surely a company that can invest 260 million USD in a single investment, should have a web presence ?
Wonder if Kemrock's bankers are so desperate to recover an NPA that they have not bothered to investigate the colour of the money they are getting ? Looking for answers if anyone has them .....

Arvind Mehta

4 years ago

Company has no money for Salary of Employee.... PF... Income Tax pay and also for supplier...How can Company produce material and sale ???? Also no sales person.....Share price will be Rs. 10 in next month.......

Ramesh Poapt

5 years ago

The new plant for aerospace rcp was first of its kind and was inaugurated by Dr Abdul Kalam, who praised this project-to the best of my knowledge.The Co's profit and share price zoomed during 2009-10-11.Co.will be in loss in the next quarter/s.But,perhaps that may not be the end of the Co.At some more decline,it could be interesting Co. risk/rewardwise for brave heart long term investors.


5 years ago

fuck of for this company just in 3 days lost more than 100 rs/share, wt fuck are managment doing abouth share holders.

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