Stocks
Short downtrend ahead: Friday Closing Report

If the Nifty breaks today’s low, it may be headed for 5,200

 
The market settled flat with a negative bias following a clutch of disappointing quarterly results and subdued global cues. Yesterday we had mentioned that we may see the Nifty move sideways for a day or two before it is able to find its further move. Today the index moved in a range of 5,294 and 5,330 (36 points) before it closed flat. We may now see a short downtrend. If the benchmark breaks today’s low, it may head for 5,200.The National Stock Exchange (NSE) saw a lower volume of 52.66 crore shares.
 
The market opened lower on unsupportive global cues and downgrades of blue chips—State Bank of India and Tata Motors—by global investment firms. Among US benchmarks, the Dow slipped marginally, while the S&P 500 and Nasdaq settled in the green on Thursday. Markets in Asia were trading lower this morning on weaker-than-expected trade data from China.
 
Back home, the Nifty opened 15 points down at 5,308 and the Sensex resumed trade at 17,515, down 46 points from its previous close. The indices remained in the negative in subsequent trade amid intense volatility. 
 
State Bank of India (SBI) reported a 137% jump in net profit at Rs3,752 crore for the first quarter ended 30 June 2012 compared to Rs1,583 crore in the year-ago period, though rising non-performing loans continue to be a cause of concern. The bank's net non-performing assets (NPAs) rose to 2.22% of total loan book at the end of June, against 1.61% in the corresponding period of the previous fiscal, reflecting the impact of slowing economy.
 
The market fell to the day’s low in noon trade following a lacklustre performance by SBI and a negative opening of the European indices. The Nifty fell to 5,294 and the Sensex went back to 17,471 at the lows.
 
 However, value-picking at the lows resulted in the indices recovering from the lows and emerging into the green. The gains enabled the market hit its intraday highs around 1.45pm. At this point the Nifty rose to 5,330 and the Sensex went up to 17,589.
 
Volatile trade and downgrade of key stocks resulted in the market closing flat with a negative bias. The Nifty shed three points to settle at 5,320 and the Sensex finished trade at 17,558, down three points from its previous close.
 
The advance-decline ratio on the NSE was negative at 555:854.
 
The broader indices settled mixed. The BSE Mid-cap index rose 0.02% while the BSE Small-cap index declined 0.29%.
 
BSE IT (up 1.33%); BE TECk (up 1.13%); BSE Fast Moving Consumer Goods (up 0.69%); BSE Oil & Gas (up 0.27%) and BSE Metal (up 0.09%) made up the sectoral gainers. The top losers were BSE Consumer Durables (down 1.68%); BSE Auto (down 1.22%); BSE Bankex (down 0.85%); BSE PSU (down 0.84%);  and BSE Realty (down 0.67%) . 
 
The top gainers on the Sensex were Hindustan Unilever (up 2.13%); Sterlite Industries (up 1.65%); Maruti Suzuki (up 1.61%), TCS (up 1.53%) and Infosys (up 1.50%). The key losers on the index were SBI (down 4.26%); Tata Motors (down 3.07%); Hero MotoCorp (down 2.27%); Tata Steel (down 1.45%) and Coal India (down 1.09%).
 
The top two A Group gainers on the BSE were—Jain Irrigation (up 5.02%) and Tech Mahindra (up 4.96%).
The top two A Group losers on the BSE were—JP Infratech (down 7.24%) and SBI (down 4.26%).
 
The top two B Group gainers on the BSE were—Technocraft Industries (up 19.96%) and Shree Tulsi Online.Com (up 12.47%).
The top two B Group losers on the BSE were—SE Power (up 19.95%) and Birla Power Solutions (down 14.71%).
 
The Nifty was led by BPCL (up 3.59%); Maruti Suzuki (up 2.46%); Kotak Mahindra Bank (up 2.33%); TCS (up 2.13%) and Sterlite Ind (up 2.11%). The key losers on the benchmark were SBI (down 4.11%); Tata Motors (down 3.24%); Ranbaxy Laboratories (down 3.05%); Bank of Baroda (down 2.55%) and IDFC (down 2.37%).
 
Markets in Asia settled mostly higher, but with meagre gains, on reports that China’s trade data for July was below expectations. China’s exports grew 1% in July from a year earlier against market expectations for an 8.6% rise, while imports grew 4.7%, against expectations for 7.2% growth.
 
The Jakarta Composite gained 0.25%; the KSLE Composite rose 0.17%; the Straits Times added 0.06%; the Seoul Composite advanced 0.30% and the Taiwan Weighted settled 0.10% higher. Among the losers, the Shanghai Composite declined 0.24%; the Hang Seng dropped 0.66% and the Nikkei 225 tanked 0.97% in trade today.
 
At the time of writing, the key European indices were down between 0.27% and 0.87% and the US stock futures were trading in the negative.
 
Back home, foreign institutional investors were net buyers of shares totalling Rs337.14 crore on Thursday whereas domestic institutional investors were net sellers of stocks amounting to Rs754.40 crore.
 
Industrialist Anil Ambani has said his group firm Reliance Infrastructure has shortlisted road projects worth Rs40,000 crore for bidding, while for cement business it has applied for mining leases and prospecting licences in various parts of the country. The stock declined 1.91% to settle at Rs504.45 on the NSE.
 
State-owned Engineers India today said it has bagged a consultancy service contract from Cairn Energy India Pty Ltd for its enhanced oil recovery project for Mangala oil field in the prolific Rajasthan block. The project involves setting up of additional surface facilities for 15 existing well pads with associated pipelines and infrastructure facilities for development of a polymer flood at Mangala (oilfield) for enhanced crude oil recovery.  EIL dropped 2.72% to close at Rs234 on the NSE.
 
Mahindra Holidays & Resorts, a leader in the vacation ownership space with over 147,000 members and 40 resorts across India and abroad, today announced the acquisition of Royal Courts Jaisalmer, a 74 room resort, by purchasing 100% equity share capital of Divine Heritage Hotels. Out of the 74 rooms, 35 rooms were already part of the company’s flagship brand “Club Mahindra” network under an inventory management. With this acquisition, Club Mahindra now has inventory of over 200 rooms in Rajasthan. The stock climbed 2.15% to close at Rs292 on the NSE.
 

 

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IndiaFirst Life adds two products for customers of AP bank

CGG Bank will offer the IndiaFirst Group Credit Life Plan and IndiaFirst Group Term Plan to its loan and savings bank account customers

 
Mumbai: Private insurer IndiaFirst Life Insurance on Friday added two insurance products for the customers of Chaitanya Godavari Grameena Bank (CGGB) in Andhra Pradesh, reports PTI.
 
IndiaFirst had tied up with CGGB last year for product distribution among the latter's customers. The latest offering is part of an initiative to take the benefit of insurance to the masses, the private insurer said in a release.
 
The bank will offer the IndiaFirst Group Credit Life Plan and IndiaFirst Group Term Plan to its loan and savings bank account customers, respectively. The bank itself will act as the master policyholder for the same, it said.
 
"We have further strengthened our bond with Chaitanya Godavari Grameena Bank by adding two critical products for its customers. Farmers and agriculture ancillary business units form a large chunk of CGGB's customers and we are happy that we can provide them a safety net," IndiaFirst Life Managing Director P Nandagopal said.
 
IndiaFirst aims to cover an additional 25,000 lives under the Group Term Plan with an average sum assured of Rs 50,000. It also plans to cover 2,500 loans by March 2013.
 
"Insurance, as we all know, is extremely critical for the growth and development of the country. While we have been witnessing growth in our per capita income and savings rate, the same growth has not been witnessed in the rural sector.
 
Through this tie-up, we aim to take the benefits of life insurance to the masses," CGGB Chairman M Gopalakrishna said.
 
IndiaFirst is a joint venture between public banks Bank of Baroda and Andhra Bank along with UK's leading risk, wealth and investment company Legal & General.
 

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Yuvraj makes comeback for World T20, Harbhajan recalled

The selection committee took around three and half hours to decide on the two squads -- the bone of contention being the selection of Yuvraj and Harbhajan


Mumbai: Yuvraj Singh was on Friday included in the Indian cricket team for the World Twenty 20 Championship in Sri Lanka as well as the two T20s against New Zealand in September, within months of his recovery from a rare germ cell cancer, reports PTI.
 
In another interesting pick, senior off-spinner Harbhajan Singh has also been recalled to the team after a gap of one year along with veteran seamer Lakshmipathy Balaji, who makes a comeback after three years.
 
Yuvraj's selection was on the cards after he was declared fit by the physio and trainer at the National Cricket Academy where he had been camping for the past one month.
 
"Yuvraj has been declared fit, so he makes a comeback. And all of us know, if he gets going, he can singlehandedly win matches," chairman of selectors Krishnamachari Srikkanth told reporters after the meeting.
 
The two T20 Internationals against New Zealand, slated for the first week of September, will be a test for Yuvraj who underwent chemotherapy in the US earlier this year.
 
Ever since his diagnosis, the left-hander has remained out of action since the second Test match against West Indies played from November 14-17 in Kolkata.
 
The selection committee took around three and half hours to decide on the two squads -- the bone of contention being the selection of Yuvraj and Harbhajan.
 
According to sources, Yuvraj's selection wasn't exactly unanimous as couple of selection committee members were apprehensive about picking him for the T20 World Cup starting 18th September as he has not played a single competitive match for the past nine months.
 
However, his class and experience in the shortest format was the logic behind his selection apart from the popular sentiment to bring him back which definitely played a part.
 
Harbhajan's selection was simply based on his past record as India's spin department is pretty thin on experience.
 
Harbhajan last played for India against England at Trent Bridge last July-August before he flew back with an injury and has not been considered for selection since then.
 
The surprise inclusion has to be Piyush Chawla, who has done precious little in the domestic season gone by but dearth of quality leg-break bowlers was the reason behind the Uttar Pradesh player getting the nod ahead of the likes of Rahul Sharma and Amit Mishra.
 
The inclusion of Balaji is based on his impressive performance for Kolkata Knight Riders in the last two editions of the Indian Premier League (IPL). The 30-year-old's ability to bowl effective slower deliveries at the death has led to his selection over Umesh Yadav.
 
The only tearaway pacer in the squad is Ashok Dinda while the other two seamers will be the experienced duo of Zaheer Khan and Irfan Pathan.
 
The squad consists of eight players -- Mahendra Singh Dhoni, Gautam Gambhir, Virender Sehwag, Yuvraj Singh, Irfan Pathan, Rohit Sharma, Piyush Chawla and Harbhajan Singh -- who were a part of India's historic T20 triumph in South Africa five years back.
 
Gambhir being named as a deputy to Dhoni was a reward for leading Kolkata Knight Riders to IPL triumph.
 
Squad for T20 World Cup and T20s against New Zealand: Mahendra Singh Dhoni (captain), Gautam Gambhir (vice-captain), Virender Sehwag, Yuvraj Singh, Virat Kohli, Suresh Raina, Manoj Tiwary, Rohit Sharma, Irfan Pathan, Ravichandran Ashwin, Zaheer Khan, Lakshmipathy Balaji, Piyush Chawla, Harbhajan Singh, Ashok Dinda.

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