Stocks
Share prices may move with a negative bias: Tuesday Closing Report

Nifty may move sideways in the range of 5,100 and 5,215 with a downward bias

Gains in banking and realty stocks, supported by positive cues from the global arena, helped the market settle higher today. As we had mentioned yesterday that the downtrend has begun, we continue to maintain the same outlook. The Nifty may now see a sideways move in the range of 5,100 and 5,215 with a downward bias. The National Stock Exchange (NSE) traded with a volume of 75.40 crore shares today.

The domestic market opened higher, tracking gains in the Asian region in morning trade following reports that European leaders on Monday supported plans for greater fiscal integration in Europe. The Nifty started trade at 5,125, up 38 points and the Sensex gained 103 points at 16,966. The opening figure of the Sensex was its intraday low while the Nifty fell a tad lower to 5,120 at its low.

The indices were sideways for most part of the morning trade. A pick-up in buying activity in subsequent trade saw the market inching marginally higher in the noon session. Spurred by State Bank of India’s announcement that the government would infuse funds amounting to around Rs7,900 crore into the state-owned lender and ICICI Bank’s better-than-expected third quarter results, the banking sector was the top gainer today.

A positive opening of the key European markets kept the momentum steady in post-noon trade. The benchmarks hit their intraday highs towards the end of the session with the Nifty scaling 5,215 and the Sensex touching 17,239.

The market closed marginally off the highs of the day. The Nifty gained 112 points at 5,199 and the Sensex jumped 330 points to settle at 17,194.

The advance-decline ratio on the NSE was 1201:579.

Among the broader indices, the BSE Mid-cap index surged 1.99% and the BSE Small-cap index climbed 1.41%.

The BSE Bankex index (up 3.84%) was the top sectoral today. It was followed by BSE Realty (up 3.51%); BSE Auto (up 2.37%); BSE Metal (up 2.24%) and BSE TECk (up 1.85%). There were no red ticks in the sectoral space today.

Hindalco Industries (up 6.65%); ICICI Bank (up 5.87%); DLF (up 5.29%); Tata Motors (up 4.06%) and Bajaj Auto (up 3.58%) were the top performers on the Sensex. The losers were led by Coal India (down 2.99%); Maruti Suzuki (down 1.10%); Hindustan Unilever (down 0.76%); NTPC (down 0.09%) and ONGC (down 0.05%).

The top performers on the Nifty were Hindalco Ind (up 8.07%); Reliance Communications (up 7.31%); Sesa Goa (up 7.12%); IDFC (up 6.39%) and Axis Bank (up 6.02%). Coal India (down 2.31%); Siemens (down 1.86%); Punjab National Bank (down 1.19%); Cairn India (down 1.08%) and Maruti Suzuki (down 0.98%) settled at the bottom of the index.

Markets in Asia closed higher on hopes of a pact would be reached that would enable Greece avoiding a debt default. Besides, a 4% surge in Japanese factory output in December also supported the gains.

The Shanghai Composite rose 0.33%; the Hang Seng surged 1.14%; the Jakarta Composite gained 0.68%; the KLSE Composite climbed 0.51%; the Nikkei 225 added 0.11%; the Straits Times advanced 0.64%; the Seoul Composite was up 0.79% and the Taiwan Weighted closed 1.48% higher. At the time of writing, the key European markets were trading with gains in the range of 0.69% to 1.24% and the US stocks futures were in the green.

Back home, foreign institutional investors were net sellers of equities totalling Rs201.71 crore on Monday and domestic institutional investors were net sellers of stocks amounting to Rs533.69 crore.

Tiles maker Somany Ceramics on Tuesday said it has entered into an agreement with Italy’s Fiandre Group for marketing and distribution of the latter’s Active range of tiles in India. Under the agreement, Somany will start selling the premium tiles which are priced at Rs350-Rs450 per sq ft at its stores in all major cities. The stock jumped 5.17% to settle at Rs38.65 on the NSE.

Wind turbine maker Suzlon has bagged an over Rs 600-crore contract from CLP India, the Indian subsidiary of Hong Kong-based power company CLP, for setting up a 100-MW project in Rajasthan. The project, which comprises 48 wind turbines, is scheduled to be commissioned by January 2013. Suzlon settled 6.45% higher at Rs28.05 on the NSE today.

Starbucks Corp, the world's largest coffee shop company, will open its first cafe in India in August through an equal joint venture with Tata Global Beverages. The venture, Tata Starbucks, will spend Rs400 crore initially and open 50 Starbucks cafe across the country by the end of the calendar year. Tata Global Beverages soared 10.52% to Rs108.20 on the NSE today.

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Govt stake in SBI to go up by 2.5% post-equity infusion

“If you go by the past share price of SBI, it (the price of preferential allotment) is likely to be somewhere about Rs1,800 to Rs2,000. If that is the range that is going to happen, then the government’s equity share will go up by 2%-2.5%,” SBI managing director Diwakar Gupta told reporters

New Delhi: State Bank of India (SBI), the country's largest lender, today said the government’s stake in the bank is likely to increase by up to 2.5% following the capital infusion of Rs7,900 crore, reports PTI.

“If you go by the past share price of SBI, it (the price of preferential allotment) is likely to be somewhere about Rs1,800 to Rs2,000. If that is the range that is going to happen, then government’s equity share will go up by 2%-2.5%,” SBI managing director Diwakar Gupta told reporters here.

At present, the government of India holds a 59.4% stake in SBI.

Mr Gupta said the preferential allotment would be governed by the guidelines of market regulator Securities and Exchange Board of India (SEBI), which is the higher of the six-month average or 15-day average share price of the bank.

The capital infusion by the government will raise the Tier-I capital of the bank to about 8%.

He said SBI would need about Rs15,000 crore of additional capital and the infusion could happen by way of qualified institutional placement (QIP), a follow-on public offer (FPO) or a rights issue.

“We would be needing about Rs15,000 crore of additional capital. For the current year, the calculation is closer to Rs8,000 crore for Tier-I,” Mr Gupta added.

He said SBI has submitted a rough plan of its capital requirement for the next five years to the government. “The total capital required over three years is Rs28,000 crore.

The Rs15,000 crore is part of that,” Mr Gupta added.

SBI had raised over Rs16,000 crore through a rights issue in 2008. In the last SBI rights issue, the government’s contribution to the bank was in the form of bonds, rather than cash.

As of September 2011, the capital adequacy ratio (CAR) of SBI stood at 11.4%. Of this, Tier-I capital stood at 7.47% at the end of second quarter against the minimum 8% level desired by the government.

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IDBI Bank Q3 net profit rises to Rs410 crore

Total business (deposits and advances) of IDBI Bank as of 31 December 2011 stood at Rs3,33,340 crore

IDBI Bank reported a net profit of Rs410 crore for the quarter ended 31 December 2011 and Rs1,261 crore for nine months period ended 31 December 2011 as against Rs454 crore for the quarter ended 31 December 2010 and Rs1,134 crore for nine months period ended 31 December 2010.

Total business (deposits and advances) as of 31 December 2011 stood at Rs3,33,340 crore as against Rs2,84,729 crore as of 31 December 2010, registering a growth of 17%.

Deposits increased to Rs1,77,123 crore as at end-December 2011 from Rs1,50,239 crore as at end-December 2010, reflecting a growth of 18%.

Advances also increased by 16% to Rs1,56,217 crore as at end-December 2011 as compared to Rs1,34,491 crore as at end-December 2010.

Aggregate assets as of 31 December 2011, stood at Rs2,55,888 crore as against Rs2,21,099 crore as of  31 December 2010, registering a growth of 16%.

Fee-based income for the quarter ended 31 December 2011 increased to Rs361 crore as against Rs358 crore for the quarter ended 31 December 2010.

In the late afternoon, IDBI Bank was trading at around Rs101.30 per share on the Bombay Stock Exchange, 4.06% up from the previous close.

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