Indian Stock Market Tips

The MCX Silver futures broke above Rs 61000 per kg levels today as a good amount of fresh buying helped the metal amid mostly positive movement in global risky assets. The US dollar slipped as US Congressional leaders met with President Barack Obama on Friday and said they would work to find common ground on taxes and spending. This boosted hopes that the world's largest economy would be successfully able to combat with the looming "fiscal cliff". Gains in other industrial commodities like Copper and Crude oil also boosted the metal. COMEX Silver futures are trading at $32.60, up 2.3 cents or 0.73% on the day.

Silver futures extended a downward run from its highs near $35 per ounce achieved in the first week of October 2012. LME Copper tested its two-month lows and kept Silver in tight ranges. Silver is linked directly to industrial activity and safe haven demand and a drop in copper is normally supposed to have a negative influence on the white metal. The commodity tested its two-month lows near $30 per ounce and closed at $32.37, up nearly 5% on the fortnight. The prices have been locked in a broad range of $30-35 per ounce over last few days and a break on the either side is needed for further direction.

Precious metals consultancy GFMS estimates that industrial demand for silver fell 6% in 2012, driven by weak economic growth in developed countries. Manufacturers continued to find ways to substitute cheaper raw materials in place of silver. Meanwhile, consumers have cut purchases of silverware and shifted away from costly precious metals in their jewelry purchases. The trend was partially offset by rising sales in emerging markets, particularly China, GFMS said. While the industrial demand dropped, silver mine supply rose for the 10th consecutive year in 2012, and is expected to total 797.0 million ounces, up 4.3% from 763.8 million ounces in 2011, according to the consultancy.

The white metal had neared $32.30 per ounce levels earlier in the session but edged up quite impressively thereafter, adding one full dollar during the day. The Asian equities added good gains following a near 1.5% surge in Japanese stocks while the European stocks are also up by nearly 1%. MCX Silver futures are trading at Rs 61038, up Rs 168 or 0.26% on the day. The open interest in the counter is up nearly 4% - indicating fresh buying.

Indian Stock Market - Tata Motors spurts after good Q2 results

Key benchmark indices extended recovery in mid-morning trade as concerns about India's fiscal and current account deficit eased after a sharp slide in crude oil prices on Wednesday, 7 November 2012. The barometer index, BSE Sensex, was down 61.88 points or 0.33%, up 104.08 points from the day's low and off 9.32 points from the day's high. The market breadth was negative. Index heavyweight Reliance Industries (RIL) hovered in negative zone. Index heavyweight and cigarette major ITC was also in red.
Bank stocks slipped on profit booking. Capital goods stocks declined. Tata Motors surged after announcing Q2 result after trading hours on Wednesday, 7 November 2012.
Key benchmark indices cut initial losses triggered by fears about upcoming fiscal challenges for the United States, the world's biggest economy. Key benchmark indices traded off initial lows in morning trade as concerns about India's fiscal and current account deficit eased after a sharp slide in crude oil prices on Wednesday, 7 November 2012. Market extended recovery in mid-morning trade.
At 11:18 IST, the BSE Sensex was down 61.88 points or 0.33% to 18,840.53. The index lost 165.96 points at the day's low of 18,736.45 at the onset of the trading session, its lowest level since 6 November 2012. The index fell 52.56 points at the day's high of 18,849.85 in mid-morning trade.
The S&P CNX Nifty was down 24.15 points or 0.42% to 5,735.95. The index hit a low of 5,693.95 in intraday trade, its lowest level since 6 November 2012. The index hit an intraday high of 5,738.40 in intraday trade
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,208 shares declined and 1,107 shares advanced. A total of 123 shares were unchanged.
The total turnover on BSE amounted to Rs 1061 crore by 11:20 IST compared to Rs 506 crore by 10:20 IST.
From the 30-share Sensex pack, 23 stocks declined while the rest of them rose.
Index heavyweight Reliance Industries (RIL) was down 0.82% to Rs 793.90. The stock hit a high of Rs 797.20 and low of Rs 790.25 so far during the day.
Index heavyweight and cigarette maker ITC shed 0.12% to Rs 289.45. The Ministry of Health and Family Welfare last month notified new pictorial health warnings to be depicted on tobacco product packs which will come into effect from 1 April 2013. The Ministry of Health and Family Welfare said in a statement on 22 October 2012 that three sets of warnings each have been notified for smoking as well as smokeless forms of tobacco product packages. The well-designed health warnings and messages are part of a range of measures to communicate health risks due to tobacco use. Pictorial health warnings communicate health risks in a visible way, provoke a greater emotional response and increase the motivation of tobacco users to quit and to decrease their tobacco consumption, the ministry's statement said. Graphic warning labels have a greater impact than text-only labels and can be recognized by low-literacy audiences and children, the statement added.
Shares of ITC had hit record high on 19 October 2012 after the company announced strong Q2 results during trading hours on that day. The stock had hit record high of Rs 299.20 in intraday trade on 19 October 2012. ITC's net profit jumped 21.27% to Rs 1836.42 crore on 18.65% growth in income from operations to Rs 7226.58 crore in Q2 September 2012 over Q2 September 2011.
Bank stocks slipped on profit booking. Private sector banking giant ICICI Bank fell 1.35%. ICICI Bank's net profit jumped 30% to Rs 1956 crore in Q2 September 2012 over Q2 September 2011. Net interest income jumped 35% to Rs 3371 crore and non-interest income jumped 17% to Rs 2043 crore in Q2 September 2012 over Q2 September 2011. Net interest margin improved to 3% in Q2 September 2012 from 2.61% in Q2 September 2011. Cost-to-income ratio reduced to 40.9% in Q2 September 2012 from 44.4% in Q2 September 2011. The result was announced on 26 October 2012.

Indian Stock Market

FMCG stocks rose on favourable outlook for Rabi or winter crop following wide-spread rains in August and September, with Hindustan Unilever (HUL) hitting record high. Pharma stocks rose on renewed buying, with Wockhardt hitting record high.

The market trimmed losses after slipping into the red after a positive start. The Sensex hovered in negative terrain in morning trade. Key benchmark trimmed losses soon after hitting fresh intraday low in mid-morning trade. Volatility continued as key benchmark indices weakened once again after trimming intraday losses in early afternoon trade after the latest data showed inflation based on the wholesale price index accelerated in September 2012. Key benchmark indices reversed direction and moved into positive zone in afternoon trade. Intraday volatility continued as key benchmark indices regained positive zone after slipping into the red once again for a brief period in mid-afternoon trade.

Provisional data showing that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Friday, 12 October 2012, underpinned sentiment on the domestic bourses. FIIs bought shares worth a net Rs 201.16 crore on Friday, 12 October 2012, as per provisional data from the stock exchanges.

As per provisional figures, the BSE Sensex was up 25.78 points or 0.14% to 18,700.96. The index rose 51.20 points at the day's high of 18,726.38 in afternoon trade. The index lost 78.53 points at the day's low of 18,596.65 in mid-morning trade, its lowest level since 11 October 2012.

The S&P CNX Nifty was up 9 points or 0.16% to 5,685.05, as per provisional figures. The index hit a high of 5,693.70 in intraday trade. The index hit a low of 5,651.05 in intraday trade, its lowest level since 11 October 2012.

The total turnover on BSE amounted to Rs 1821 crore, lower than Rs 2731 crore on Friday, 12 October 2012.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,484 shares gained and 1,357 shares declined. A total of 137 shares were unchanged.

From the 30-share Sensex pack, 19 stocks rose while the rest of them rose.

Index heavyweight Reliance Industries (RIL) rose 0.5% to Rs 823 ahead of its Q2 results today, 15 October 2012. The stock came off the day's high of Rs 829.70. RIL early this month signed a 15-year heavy crude oil supply contract and a memorandum of understanding with Venezuelan state-run oil company Petroleos de Venezuela SA (PDVSA) for further development of Venezuelan heavy oil fields. PDVSA will supply between 300,000 to 400,000 barrels per day of Venezuelan heavy crude oil to RIL's two refineries in Jamnagar under a 15 year crude oil supply contract. As per the MoU with PDVSA, RIL is to explore upstream options for joint participation in heavy oil projects of the Orinoco Oil Belt. RIL will also co-operate with Petroleos by providing technical assistance in areas of offshore upstream, refining and other downstream projects.

Meanwhile, RIL has purchased 3.9 crore shares and spent Rs 2794.73 crore (excluding brokerage, service tax, Securities Transaction Tax, Stamp Duty, Exchange Transaction Charges and Sebi fees) till 18 September 2012 under the company's ongoing share buyback program. RIL has set maximum buyback price of Rs 870 per share. The company has set aside Rs 10440 crore for share buyback. The buyback program opened on 1 February 2012 and closes on 19 January 2013. RIL chairman Mukesh Ambani said at the company's Annual General Meeting in June 2012 that the company's buyback program represents a highly accretive use of cash by the company and it will supplement earnings growth from operations, for higher EPS (earnings per share), in the near future.

FMCG stocks rose on favourable outlook for Rabi or winter crop following wide-spread rains in August and September. FMCG firms derive substantial revenue from rural India. Winter crops will gain from high soil moisture and brimming water reservoirs.

India's largest FMCG company by sales Hindustan Unilever (HUL) rose 0.67% to Rs 577.60. The stock hit record high of Rs 578.90 in intraday trade today, 15 October 2012.

Among other FMCG stocks, Godrej Consumer Products, Colgate Palmolive (India) and Marico gained by between 0.59% to 0.97%.

Index heavyweight and cigarette maker ITC rose 0.78% to Rs 285.20. The stock scaled record high of Rs 286.85 in intraday trade today, 15 October 2012.

Pharma stocks rose on renewed buying. Sun Pharmaceutical Industries, Cipla, Dr Reddy's Laboratories and Ranbaxy Laboratories gained by between 0.01% to 1.69%.

Wockhardt rose 1.73% to Rs 1,442. The stock hit record high of Rs 1,488 in intraday trade today, 15 October 2012.

JSW Steel fell 0.22%. The company said during market hours, 15 October 2012, its crude steel production jumped 54% to 7.33 lakh tonnes in September 2012 over September 2011. Production of long steel jumped 47% to 1.55 lakh in September 2012 over September 2011. Flat steel production rose 15% to 4.52 lakh tonnes in September 2012 over September 2011

JSW Steel said that the company's hot strip mill No.2 was under shutdown from 24 September 2012 for a period of 21 days to enhance its capacity from 3.5 million tonnes per annum to 5 million tonnes per annum, due to which flat rolled products showed a lower growth relative to that of crude steel production. This mill has recommenced production ahead of scheduled date with enhanced capacity on 13 October 2012, JSW Steel said.

The company reported 25% growth in crude steel production to 21.72 lakh tonnes in Q2 September 2012 over Q2 September 2011. Production of long steel jumped 29% to 4.45 lakh in Q2 September 2012 over Q2 September 2011. Flat steel production rose 12% to 14.51 lakh tonnes in Q2 September 2012 over Q2 September 2011.

India's bourses are working with the country's stock-market regulator to prevent a recurrence of the flash crash this month, National Stock Exchange (NSE) Chief Executive Ravi Narain said in an interview to international daily newspaper on Sunday, 14 October 2012. Erroneous orders placed by a single brokerage firm on 5 October 2012 sent the NSE's main index, the 50-unit S&P CNX Nifty, falling a massive 899.40 points or 15.5% in just a few seconds. Although most of the stocks recovered soon after a 15-minute trading halt, the incident created panic among traders, highlighting concerns that high-speed traders have brought instability to the markets.

The focus of the market is currently on the second quarter earnings which have just begun. Investors and analysts will closely watch the management commentary that would accompany the results which could cause revision in their future earnings forecast of the company for the current year or the next year.

HCL Technologies unveils its Q1 September 2012 results on Wednesday, 17 October 2012. ACC and Ambuja Cement unveil Q3 September 2012 results on Thursday, 18 October 2012. ITC and TCS unveil Q2 results on Friday, 19 October 2012. Bajaj Auto and UltraTech Cement unveil Q2 results on Saturday, 20 October 2012. L&T, HDFC and Bank of Baroda unveil Q2 results on 22 October 2012.

Hero MotoCorp and Lupin unveil Q2 results on 23 October 2012. Mahindra & Mahindra, Kotak Mahindra Bank and Asian Paints unveil Q2 results on 25 October 2012. ICICI Bank, GAIL (India) and IDFC unveil Q2 September 2012 results on 26 October 2012. Maruti Suzuki India, Grasim Industries and Dr. Reddy's Laboratories unveil their Q2 results on 30 October 2012. Hindalco Industries announces Q2 results on 6 November 2012. Ranbaxy Laboratories unveils Q3 September 2012 results on 8 November 2012. BPCL announces Q2 results on 9 November 2012.