Open: Nifty on verge of a breakdown? Bharti plunges on spectrum woes
The Indian markets continued their downward journey in opening trade today with the Nifty hovering around 5150 and the Sensex down 62 points to trade 17086 levels
The Indian markets continued their downward journey in opening trade today with the Nifty hovering around 5150 and the Sensex down 62 points to trade 17086 levels weighed by the global as well as weak local economic reports. According to market analyst Sudarshan Sukhani, markets are on the verge of a breakdown ." "Trend is down. Short on any rally," he advises.
The rupee slid to an over four-month low as India's policy uncertainty and worsening economic fundamentals are sparking concerns that a rout is in the making, one that the central bank will be unable to prevent it. ICICIdirect.com recommends buying USDINR above 53.55, with targets of 53.72/53.80 and stop loss of 53.46.
Infosys,Wipro,ITC, ONGC, Tata Motors, Cipla were among the notable leaders in the Sensex and the Nifty.
DLF, ICICI Bank, L&T, Bharti Airtel, NTPC, Tata Power, Ranbaxy, HUL, Bajaj Auto, BHEL, SBI, Sterlite were among the notable losers in the Sensex and the Nifty.
Among the indices, FMCG, IT and HC indices are the gainers.Power, Bankex, Consumer Durables, Teck, Realty,Metal , Auto, Oil and Gas, Power, Consumer Goods, PSU indices are the losers.
Telecom sector is likely to remain in limelight as major telecom service providers have claimed that tariffs may rise by 25 to 30 percent on account of high spectrum prices, if the government accepts recommendations of the TRAI. However, the regulator strongly refuted their figures and said that the impact will be only between 3 percent and 6 percent. Moreover, the department of telecom (DoT) is set to finalise 2G auctioneer by June 20. Both foreign and Indian companies will be allowed to bid. The bidder must have past experience in e-auction. Bharti Airtel is down 1 percent at Rs 311.90 as the company CEO Sanjay Kapoor said mobile call rates will double if the government will accept Trai's proposals. He also stated that the the figures and facts suggest that the implication of this change can be anywhere as high as 100% of the existing rate.
Pantaloon Retail is down almost 3 percent at Rs 179.90. The company will issue 200 crore worth of equity shares on a preferential basis to Benett Coleman and Company at a price of Rs 245 per share. The company will also issue 800 optional fully convertible debentures at a price of Rs 1 crore per OFCD to Aditya Birla Nuvo or its subsidiary Peter England. Additionally, the name of the parent company will now change from Pantaloon Retail India to Future Retail India.
The oil ministry has disallowed Reliance Industries $457 million of cost recovery for 2010-11 and $778 million of cost recovery in 2011-12. The ministry has refused to join arbitration saying there is no dispute till now, but the notice establishes there is a dispute over the amount of cost that can be recovered. RIL has already slapped an arbitration notice on the ministry saying the production sharing contract allows operators to recover 100% of the capital and operating expenditure on a field and it does not in any way link cost recovery to production. The stock is down half a percent at Rs 735.20
Cipla is up 3 percent today at Rs 327 as the drugmaker cut the price of its generic version of Bayer's cancer drug Nexavar by 75 per cent, nearly two months after India allowed another drugmaker to make a cut-rate version of the drug over Bayer's objections. These drugs are used in treating cancers of brain, lung and kidney
The Bombay High court has ordered Zenith to file an affidavit disclosing all assets. The court has restrained the company from disposing off Andheri property.
Macquarie Capital Securities is cautious on banks after the Reserve Bank of India released Basel-III capital regulations for local lenders. "We believe onerous capital requirements ($30-35bn equity over next five years) are likely to structurally bring down leverage ratios and ROEs," the brokerage said in a note yesterday.
Today, finance minister Pranab Mukherjee is expected to reply to the Finance Bill, leading to final budget process.
Earnings today: Bank of Baroda , Gillette, Corporation Bank, TTK Prestige, DB Corp, IL&FS Transportation, TTML, NIIT Tech will also be announcing their results today.
Total Puts adds 16.7 lakh shares, Total Calls adds 24.2 lakh shares
5100 put, 5600 call & 5000 put have the Highest OI build up
The Indian markets opened in the green with the Sensex opening at 17762.91, up by 0.43 percent and Nifty 0.32 percent at 5384.45 with Infosys opening 2 percent higher after the visa case against the IT heavyweight was dismissed by the Alabama Court.
The Indian stock markets opened flat today on lack of any domestic triggers after the fall in factory output data for June dampened sentiment on Thursday.
The stock market continued its gaining streak on the new found optimism on the reforms front. The Sensex opened 0.3 percent higher at 17,663 and the Nifty o.4 percent at 5359.