Analysis on markets today
The first day of March was quite bad for the market with BSE Sensex falling 1% led by profit booking, even after yesterday's better than predictable second tranche of LTRO 529.5 billion euro by ECB. Tepid retort for ONGC auction was another reason that dampened the opinion, as the government could not cope to meet its target after a decided floor price of Rs 290 a share. All sectoral indices excluding healthcare ended lower. The BSE Realty Index fell over 3%. Capital Goods, Bank, Oil & Gas, Auto and Metal indices were down 0.9-1.6%. Shares of India's largest private sector lender ICICI Bank fell 2.44% while competitor SBI was down 1% and HDFC Bank declined 0.7% while HDFC gained 1%. Capital goods main L&T and BHEL lost 2-3% after reports that both companies could not get NTPC's supercritical boilers order worth Rs.16000Cr. India's mechanized sector increase slowed slightly in February from a month ago, although the pace of growth continue healthy as new orders touched a 10- month high, a business review showed on Thursday. The HSBC manufacturing Purchasing Managers' Index (PMI), accumulates by Market, eased to 56.6 in February from 57.5 in January, which was an eight-month high.
Market breadth was weak at ~0.80x as investors sold large cap stocks. On conditional basis, FIIs and domestic institutions sold equity of Rs.1.27Bn and Rs.0.1Bn.
Asian shares rose Friday, with financials unification in worldwide stock gains for the sector, and Japanese exporters rose on account of relatively weak yen.
We guess a positive opening for the Indian markets, as traders and investors may try to recover their losses over last few days following the uptick in the Asian shares.
Financial and Corporate Maturity
Redundancy rate in India has declined from 8.3% in FY05 to 6.6% in FY10 in spite of global retard, government said.
Buzzing Stocks
Wind turbine maker Suzlon Energy said its wholly owned subsidiary Repower Systems SE has set syndicated loan worth euro 750 million (over Rs 4,900 crore).
Canadian research firm VERITAS has smashed realty key DLF Ltd, calling its accounting practices “conflicting” and pointing at gaps in its business mold — charges the company termed “mischievous and presumptive”. Earlier, VERITAS Investment Research had come out with harmful reports on other Indian firms, including Reliance Industries, Reliance Communications and Kingfisher Airlines.
Oil and Natural Gas Corporation’s split auction fell marginally short of full subscription today. Against 427.77 million shares on offer, bids were expected for 420 million, or 98.3 per cent. However, the government raised Rs 12,766 crore, signifying some bids came above the floor price of Rs 290 a share.
Zee TV has received the much-awaited landing privileges in China which will permit the media firm to provide to audience in the mandarin country.
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