Range-bound trade; eye on IIP, CPI Hopes of an economic turnaround seem to be setting as the country’s exports recorded a fourth successive month of expansion, growing by 13.47%. But strange as it may sound, the trade deficit has widened thanks to higher gold and silver imports. The outlook is the usual flat start. September IIP and October CPI data will be closely eyed today. The market may still remain in a range today. Rcom, Fortis Healthcare and HPCL results will be in focus today. Hindalco results will mostly be announced after market hours. The government is reviving plans to sell its 10% stake in state refiner Indian Oil Corp worth about $800 mn, according to media reports. The company will launch its investor roadshows in the United States today. Voting in the first phase of Chhattisgarh Assembly elections kicked off and Chhattisgarh Chief Minister and BJP leader Raman Singh is aiming for a hat-trick against the Congress in Rajnandgaon constituency. Over 143 candidates are contesting from 12 constituencies in Bastar division and six constituencies of Rajnandgaon district with an electorate of 29.33 lakh in the first of the two-phase polls to the 90-member assembly in Chhattisgarh. Trading ideas (Time period: 1-3 days) Cairn India (BUY, above Rs318, Target Rs330, SL Rs312): The stock confirmed a triangle breakout in last week of August and rallied to Rs339. Thereafter, the movement of the stock has been confined within range of Rs310-335. On several occasions, it has bounced back from the lower-end of the above mentioned trading range. It also coincides with the support of its 100-DMA. We expect the stock to build on yesterday’s gain and resume its prior uptrend. Derivative strategies (Time period: Till expiry) ² Long FUT Divislab November between Rs1100-1110 for the target price of Rs1180 with a Stop loss placed at Rs1072. Lot size: 250 Remarks: Net maximum profit of Rs20,000 and net maximum loss of Rs9,500. Corporate Snippets Ajay Piramal is close to acquiring a 20% stake in Shriram Capital for Rs19bn, a move that will allow Piramal to strengthen his presence in financial services. (ET) Lupin launched a generic version of Eisai’s Aciphex delayed-release tablets in the US market. The tablets are used to treat gastroesophageal reflux disease. (ET) Reliance Industries and the government took a big step towards resolving their raging dispute as RIL agreed to furnish a bank guarantee, to be encashed if it is found guilty of hoarding gas in the KG-D6 block, while the oil ministry will not ask for lower gas prices for the firm’s existing fields. (ET) The Supreme Court dismissed plea from Essar Oil Limited seeking extension of time for paying outstanding sales tax dues to Gujarat state government. (BS) YES Bank will raise over US$120mn from the International Finance Corporation. The fund-raising involves a loan of US$60mn with a tenor of five to seven years from IFCs own accounts and a syndicated loan of US$65mn. (BS) Tata Group, Jindal Steel and Power Ltd, and Monnet Ispat & Energy are among the 11 companies that will have to give up captive coal blocks. (BL) Vedanta Aluminium Ltd is likely to operate its refinery in Lanjigarh, Odisha, at full capacity from December, after a year marked by low utilisation and a shutdown. (BL) Sun TV Network may recalibrate its ad rates to restore revenue growth. It has been revising its ad rates across slots and programmes progressively since July to offset the impact of TRAI’s directive imposing a 12-minute-per-hour limit on TV advertising. (BL) Reliance Industries Ltd has requested the Ministry of Petroleum & Natural Gas to advise its nominees in the KG-D6 block oversight committee to agree to resolve issues through a third-party consultant. (BL) Tata Chemicals plans to restructure its European operations to bring down costs and realign its product mix with the market demand. (BL) Alstom T&D India said it has bagged two contracts worth Rs1bn from PowerGrid Corporation of India to supply energy management systems. (BL) Jaya Shree Textiles, part of Aditya Birla Nuvo Ltd, plans to invest Rs2.5bn to further expand yarn and fabric production at its Rishra (West Bengal) manufacturing unit. (BL) Economy snippets In October, imports stood at US$37.82bn, down 14.5% from the same month a year ago. This narrowed the trade gap in the month to US$10.56bn, almost half that in the same month last year, showed data released by the commerce & industry ministry. (ET) In a move to widen the investor base in the Indian debt markets, the Reserve Bank of India has allowed sovereign wealth funds and foreign central banks, as well as foreign institutional investors, pension funds and insurance companies to invest in credit enhanced bonds, subject to a limit of US$5bn. (ET) India’s cotton exports are expected to drop by 9% to 9mn bales in the 2013-14 marketing year on sluggish demand and high prices compared to the global market, the US Department of Agriculture said in its latest report. (ET) The government is expected to double the export target to US$1trn in the next five-year foreign trade policy even though the current policy that runs until March 2014 is all set to miss the US$500bn target set for exports. (ET) The Reserve Bank has received US$7.5bn under the special concessional window for swapping foreign currency non-resident (banks) deposits and overseas foreign currency borrowings. (ET) The Supreme Court allowed the e-auction of about 11.46mn tonnes of iron ore already mined in Goa. (BS)
Posted on: Tue, 12 Nov 2013 05:38:52 +0000
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