June 03, 2014

Soumyadip Raha

E-mail: sraha@microsec.in

2

MARKET UPDATE INTRA DAY CHART OF SENSEX

NIFTY TOP GAINERS

COMPANY LAST PRICE CHANGE % CHANGE

LT 1649.00 2.45 6.70

BPCL 556.00 33.40 6.53

BHARTIARTL 363.00 1.50 5.49

ONGC 397.00 11.35 4.98

JINDALSTEL 311.95 4.45 4.77

NIFTY TOP LOSERS COMPANY LAST PRICE CHANGE % CHANGE

HCLTECH 1385.90 32.65 (2.30)

TECHM 1884.00 39.00 (2.03)

DRREDDY 2415.00 45.65 (1.86)

SUNPHARMA 599.40 11.25 (1.84)

ITC 336.60 5.15 (1.51)

MARKET TURNOVER (RS.CR) NAME LAST PREVIOUS DAY

NSE CASH 17717.69 26092.91

NSE F&O 133047.64 113713.46

NIFTY TOP TURNOVERS

COMPANY LAST PRICE SHARE TRADED TOTAL TURNOVER

(Rs. Cr)

LT 1649.00 4473414 731.89

SBIN 2647.00 2233678 582.72

RELCAPITAL 584.65 7664411 433.43

ICICIBANK 1459.80 2750943 396.81

DLF 209.15 15175841 318.04

OUTLOOK

Indian markets settled the session on a higher note led ma-

jorly by the capital goods, banking and oil & gas stocks.

Nifty closed at 7362.50 up by 132.55points or 1.83percent

over the previous day closing of 7229.95 after witnessing a

low of 7239.50 and a high of 7368.60. Sensex closed at

24639.20 up by 421.86points or 1.74percent over the previ-

ous day closing of 24217.34. It touched an intraday low of

24270.20 and high of 24709.09 .

The markets’ breadth was negative. Out of 3087 stocks

traded 1978 stocks advanced, 1013 stocks declined and 96

stocks remained unchanged. In Sensex, Out of 30 stocks 24

stocks advanced and 06 stocks declined.

Among the sectors, BSE Capital Goods , BSE Bankex and B S

E Oil & Gas were the main gainers of the day which in-

creased by 4.93percent, 3.28percent and 2.85percent re-

spectively.

In BSE Capital Goods sector, Suzlon Energy, Sadbhav Engg

and Larsen increased by 9.97percent, 8.82percent and

6.23percent respectively. In BSE Bankex, Canara Bank,

Bank of India and SBI advanced by 6.18percent,

4.89percent and 4.02percent respectively. In BSE Oil & Gas

sector BPCL, HPCL and ONGC increased by 6.50 percent,

5.59 percent and 5.55percent respectively.

 

Indian market is likely to remain strong as first moves of the govt is

likely to boost confidence and also on signs of early arrival of mon-

soon than expected. At the Nifty level of 7229.95, current year esti-

mates for EPS is 485 and on that basis Nifty is trading 14.9times

which is not expensive. Expectation of turnaround in the economy

is high, which is likely to keep Nifty at elevated levels. Automobile

shares, led by M&M, Maruti, Tata Motors may lead the rally in the

next few weeks. Select capital goods companies like L&T, Cromp-

ton Greaves, Voltas may also remain firm. PSU stocks that have run

up significantly in the last 1 month may correct marginally. How-

ever, select PSU stocks will witness buying as they have a strong

visibility of growth. Engineers India, Bharat Electronics, MOIL,

Coal India are some of them. IL&FS Transportation, Maharashtra

seamless, Swaraj Engines and Aban Offshore can be accumulated

on dips as they are likely to turnaround significantly.

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MARKET STATS DOMESTIC INDICES

NAME LAST PRICE CHANGE % CHANGE

SENSEX 24684.85 467.51 1.93

NIFTY 7362.50 132.55 1.83

BSE MID-CAP 8650.52 183.30 2.16

BSE SMALL-CAP 9196.92 181.19 2.01

NSE CNX MIDCAP INDEX 10366.60 225.55 2.22

NAME LAST PRICE CHANGE % CHANGE

AUTO 14700.86 207.09 1.43

CAPITAL GOODS 15442.48 725.67 4.93

FMCG 6808.06 -56.07 (0.82)

METAL 12521.72 229.03 1.86

OIL & GAS 11163.39 309.30 2.85

HEALTHCARE 10220.85 -94.56 (0.92)

POWER 2218.21 51.56 2.38

REALTY 1921.36 27.02 1.43

BANKEX 17510.44 556.58 3.28

IT 8457.53 2.17 0.03

CONSUMER DURABLES 7841.94 128.48 1.67

SECTORAL INDICES

INSTITUTIONAL FLOW IN CR (05/30/2014)

FII DERIVATIVE SEGMENT IN CR (0 5/30/2014)

INSTRUMENT PURCHASE SALE NET

INDEX FUTURE 2463.18 2251.55 211.63

INDEX OPTION 7370.59 7060.06 310.53

STOCK FUTURE 5863.95 6703.89 (839.93)

STOCK OPTION 1353.94 1282.87 71.07

BULK & BLOCK DEALS

http://www.bseindia.com/mktlive/market_summ/bulk_deals.asp

http://www.bseindia.com/mktlive/market_summ/block_deals.asp

NAME LAST PRICE CHANGE % CHANGE

DOW JONES 16717.17 18.43 0.11

NASDAQ 4242.62 -5.33 (0.13)

S&P 500 1923.57 3.54 0.18

FTSE 6864.43 19.96 0.29

CAC 4517.76 -1.80 (0.04)

DAX 9960.09 16.91 0.17

MEXICO BOLSA 41362.51 -647.41 (1.54)

RUSSIAN RTS 1323.75 27.96 2.16

NIKKEI 225 14935.92 303.54 2.07

HANG SENG 23081.65 71.51 0.31

TAIWAN TAIEX 9075.91 -33.09 (0.36)

SHANGHAI 2039.21 -1.38 (0.07)

KOSPI 2002.00 7.04 0.35

FTSE BURSA MALAYSIA KLCI 1864.25 -9.13 (0.49)

JAKARTA COMPOSITE 4912.09 18.18 0.37

PSEi - PHILIPPINE SE 6710.40 62.75 0.94

STOCK EXCH OF THAI 1440.94 25.21 1.78

BRAZIL BOVESPA 51239.34 -1000.00 (1.91)

GLOBAL INDICES

INDUSTRIAL METALS & ENERGY MARKETS

NAME LAST PRICE CHANGE

COPPER (USD/T) 6924.50 78.25

ALUMINUM (USD/T) 1849.00 11.00

ZINC (USD/T) 2077.75 23.75

LEAD (USD/T) 2115.75 20.75

OIL (USD/BBL) 102.81 0.10

NATURAL GAS (USD/MMBTU) 4.60 0.05

% CHANGE

1.16

0.60

1.16

0.99

0.10

1.19

PRECIOUS METALS

NAME CHANGE % CHANGE

GOLD (USD/OZ) -2.33 (0.20)

SILVER (USD/OZ) 0.01 0.01

LAST PRICE

1247.25

18.82

INDUSTRY INDICES

NAME CHANGE % CHANGE

BALTIC DRY INDEX -6.00 (0..64)

BBG WORLD IRON/STEEL IDX 0.94 0.59

LAST PRICE

934.00

160.28

INSTRUMENT PURCHASE SALE NET

FII 6868.60 7309.50 (440.70)

DII 2218.21 2676.36 (458.15)

CURRENCIES

NAME LAST PRICE CHANGE % CHANGE

USD-INR 59.16 0.05 0.09

EUR-INR 80.50 0.05 0.07

GBP-INR 99.10 0.10 0.10

INR-JPY 1.73 0.01 0.70

Data Source: Bloomberg, BSE, NSE , moneycontrol as on June 02,2014 at 6.00 p.m.

Provisional FII data as at 5:50p.m. (in crores) B=buy S=Sell N=net

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NEWS

Auto sales in May 2014

TVS Motor Company, registered total sales of 210,293 units in May 2014, compared to 165,151 units in the corresponding

month of the previous year, hence, showing a Growth of 27.33%. On MoM basis, the company reported a growth of 10.28%.

Sales volume of Maruti Suzuki stood at 100,925 units in May, 2014 against 84,677 units in the same month of last year, register-

ing a YoY growth of 17.09%. On MoM basis, sales is up by 17.09%.

Total sales of Tata Motors sales stood at 37,525 units in May 2014, showing a decline 23.89% on YoY basis. However, on MoM

basis, sales increased by 10.72%.

Hero Motocorp, registered total sales of 602,481 units in May 2014, compared to 557,890 units in the corresponding month of

the previous year, hence, showing a growth of 7.99%. On monthly basis, the company reported a growth of 5.50%.

Bajaj Auto, registered total sales of 351,436 units in May 2014, compared to 339,348 units in the corresponding month of the

previous year, hence, showing a growth of 3.56%. On monthly basis, the company reported a growth of 6.00%.

14‐May

Name of Company 14-May 13-May 14-Apr

YOY Change

(%)

MOM Changes(

%)

TVS Motor 210,293 165,151 190,683 27.33% 10.28%

Maruti Suzuki 100,925 84,677 86,196 19.19% 17.09%

Tata motors 37,525 49,304 33,892 ‐23.89% 10.72%

Hero Motocorp 602,481 557,890 571,054 7.99% 5.50%Bajaj Auto 351,436 339,348 331,529 3.56% 6.00%

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NEWS

SAIL registers 11% growth in May’14 sales

Maintaining emphasis on higher sales, Steel Authority of India Limited (SAIL) registered an aggressive sales growth of 11% in

May 2014, at 1.06 million tonnes (MT), compared to 0.96 MT in same month last year (SMLY). Rise in exports was to the tune

of 76% on a y-o-y basis during the month. Production at SAIL plants kept pace with Hot Metal production of 1.26 MT

achieved in May ’14, registering a y-o-y growth of 4%.

Optimistic about the ensuing period in current financial year, the company foresees the present thrust on infrastructure

growth translate into higher demand of steel in the country. This certainly augurs very well for the industry, and it is geared to

meet this resurgent demand.

Source: company

FDI in Insurance

The finance ministry could recommend to enhance the Foreign Direct Investment (FDI) in insurance sector to 49% from 26%.

The insurance companies are the key beneficiaries of this proposal if this gets implemented. However, the ministry is likely to

propose capping of voting rights for foreign investors in a view to cease controlling power by the overseas investors. Max India

is the frontrunner to be benefitted from the above mentioned proposal.

Finance Ministry plans a holding company to raise debt, equity for PSBs.

The finance ministry has proposed an ambitious road map to create a holding company to park government-held stakes in

public sector banks valued at about Rs 2.5 lakh crore, which in turn will raise long-term funds and use that to capitalise the

lenders. The holding company (holdco) will raise funds through debt and equity route over the period that will be used to

meet the fund requirements of capital-starved public sector banks.

The finance ministry estimates these banks would need about Rs 1.25-1.5 lakh crore over the next five years to meet Basel

III norms and fund future growth plans.

In a detailed presentation to new finance minister Arun Jaitley, finance ministry mandarins suggested the move to create a

long-term solution to finance the banks. This necessitates the repeal of the nationalised bank status under which these lend-

ers are constituted, and would also require the transfer of power from the government to the holdco through a suitable

agreement and relevant memorandum and article of association.

"The proposed holdco will act as sovereign fund for the financial sector and will help in infusing capital to the banks in fu-

ture. The proposed structure will help the government in retaining its voting right to above 51 per cent in these banks while

its (government's) economic interest will come down over the period," according to a person familiar with the presentation.

Earlier this month, the PJ Nayak Committee recommended the creation of a Banking Investment Company. "While the

Banking Investment Company would be constituted as a core investment company under RBI registration and regulation,

the character of its business would make it resemble a passive sovereign wealth fund for the government's banks," according

to the report of the committee.

The government and the holdco will enter into a shareholder agreement which will ensure the holdco has autonomy over

its operations and sets its objective in terms of financial returns from the banks it controls. Following the legislative amend-

ments that will be needed to repeal the act through which public sector banks have constituted as statutory bodies, the

ownership function of these banks will be taken over by the holdco from the government.

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NEWS Over the period, the holdco will be listed on bourses and raise a substantial amount to fund the future growth of these

banks. In addition, the ministry is also suggesting that banks be allowed to issue non-voting shares or shares with dif-

ferential voting rights as this will help the government in retaining majority control.

Source: The Economic Times

Impact – The move is positive for the PSBs (especially those with lower Capital Adequacy Ratio (CAR) as mentioned

the following table), if implemented.

Banks Name Basel III- CAR (%)

United Bank of India 9.81

Central Bank Of India 9.87

Allahabad Bank 9.96

Bank Of India 9.97

Vijaya Bank 10.55

Canara Bank 10.63

Andhra Bank 10.78

Indian Overseas Bank 10.78

Bank Of Maharashtra 10.79

State Bank Of Travancore 10.79

Union Bank Of India 10.8

Punjab & Sind Bank 11.04

State Bank Of Mysore 11.08

Dena Bank 11.14

Punjab National Bank 11.52

State Bank Of Bikaner and Jaipur 11.55

Corporation Bank 11.64

IDBI Bank Ltd. 11.68

Bank Of Baroda 12.28

State Bank Of India 12.44

Indian Bank 12.54

UCO Bank 12.68

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EVENTS

OTHER EVENTS

CORPORATE ACTION BONUS / RIGHTS / STOCK SPLIT / ADR & GDR / FCCB / M&A / WARRANTS ETC.

COMPANY RECORD DATE Ex-DATE DETAILS

RBI repurchase rate decision .

U. S. Factory orders data for the month of April,2014.

ITC LTD 03/06/2014 DIVIDEND INR6.00PER SHARE

Source of News : The content may have been taken from The Economic Times, Business Standard, Business Line, Mint and other leading

financial newspapers and financial portals BSE,NSE, Bloomberg, Moneycontrol & others.

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