Sentiment swings With the currency in focus, the Finance Minister is upping the rhetoric regarding sentiment turning in favour of the rupee. The FM is confident that the rupee will stabilise as measures taken by the govt to contain the fiscal and current account deficits will improve investor sentiment. Talking of sentiment, the FM stressed that even the sentiment of a lone gentleman (US Federal Reserve Chairman Ben Bernanke) in the US impacts the rupee adding that Bernanke’s statement is misunderstood or misinterpreted. Meanwhile the rupee, which tops the loser’s chart among Asian currencies weakening 8.6% in April-June quarter, came off its highs to end lower on Monday at 59.51/52. The equity markets are witnessing swinging sentiments with no clear direction emerging. The outlook is a weak start but some buying could set in later in the day and take the Nifty above the 5900 mark. Trading ideas (Time period: 1-3 days) Aurobindo Pharma (BUY, above Rs185, Target Rs200, SL Rs178): Aurobindo Pharma on the daily chart gave a breakout from descending trendline as prices closed above Rs180. After consolidating for almost six weeks, stock has signaled a trendline breakout. This corroborate strength and sustainability from here on and stock is expected to test its May peak placed at Rs202 in the near term. Similar breakout has also been confirmed in the RSI oscillator with a positive crossover. (Duration 5 days) Derivative strategies (Time period: Till expiry) Long Tata Steel July Future below Rs272 for the Target price of Rs282 with a Stop loss placed at Rs268. Lot size: 1000 Remarks: Net maximum profit of Rs10,000 and net maximum loss of Rs5,000. Corporate Snippets Oil India Ltd will be raising debt of about US$900 mn by September for funding its recent acquisition in the Rovuma hydrocarbon block in Mozambique. (BL) Gulf Oil Corporation Ltd has decided to dilute 90 % stake in GHCL London Ltd, UK, a special purpose vehicle formed by the company to facilitate the acquisition of the US-based Houghton International Inc. (BL) Reliance Infrastructure will have to repay the debt of about Rs.20bn for the airport express metro project till the concession agreement is terminated, said a top Government official. (BL) Bajaj Auto has approached the Pune industrial court today to declare the on-going workers’ strike at its Chakan plant as illegal. (BL) Reliance Communications it has fully repaid two loans amounting to US$1 bn during the quarter ended June 30. (BL) Godrej Properties has bought back a 49 % stake from HDFC PMS in the real estate company’s two projects in Chennai and Chandigarh for an undisclosed amount. (BL) Unitech Group, through its bankers, had approached global investors like Morgan Stanley, the Singapore government-owned GIC and Blackstone to sell its Infotech Special Economic Zone (SEZ) in Gurgaon, said sources in the know. (BS) Hero MotoCorp has bought a 49.2% stake in US-based performance (race) motorcycle maker Erik Buell Racing (EBR), for US$25 mn. (BS) Vodafone India has expressed its willingness to pay Rs.40bn crore for the extension of licences in three key circles—Delhi, Mumbai and Kolkata — where its operating permits are coming up for renewal in November 2014. (BS) Oil India Ltd is in talks with Irish exploration firm Petroceltic International Plc to acquire up to 20 % in an Algerian asset of the company for US$170 mn (Rs 1,010 crore today). (BS) IOB said it would focus on improving its current and savings account (Casa) deposits and on reducing non-performing assets (NPA), while improving net interest margin during FY14. (BS) Jet Airways and HDFC Bank came together to launch a premium debit card-- JetPrivilege-HDFC Bank World debit card. (ET) Aiming for 27 % growth in revenue, Tata Group jewellery brand Tanishq said it plans to open around 30 new stores in the country during this fiscal. (ET) Tata Sons, Aditya Birla Nuvo, Reliance Capital, Bajaj Finserv, L&T Financial Holdings, IFCI and India Post led the 26 private and public sector entities that have applied to the Reserve Bank of India to set up banks. (BL) Economy snippets India’s economic growth would pick-up in 2013-14 and record 6% plus levels, C. Rangarajan, Chairman to the Prime Minister’s Economic Advisory Council (PMEAC), said. (BL) The Department of Industrial Policy & Promotion (DIPP) is expected to soon move the Cabinet on raising the foreign direct investment (FDI) cap for some key sectors like civil aviation, defence, telecom and multi-brand retail. (BS) The core sector of eight infrastructure industries recorded a growth of 2.3 % in May this year against 7.2 % in the year-ago period. (BS) Manufacturing activity remained almost flat in June as new orders fell for the first time since March 2009. The HSBC India purchasing managers’ index (PMI) for manufacturing stood at 50.3 in June, marginally up from 50.1 in May. (BS) The Union government is expecting an investment of US$1 bn from private technology companies, with the release of India’s first cyber security policy on Tuesday. (BS) Two days after increasing petrol prices, the public sector oil marketing companies hiked diesel prices by 50 paise a litre (excluding VAT) at the retail end. This price hike is effective from Monday midnight. (BL)
Posted on: Tue, 02 Jul 2013 03:56:46 +0000
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