Market Analysis: Weekly roundup till Oct 10
Markets touched a new 17 month highs on the back of better than expected Q2 results announced by a few companies and strong Index of Industrial Production numbers for Aug 2009 and positive global news lead the markets to continue the rally. The net inflows from FII"s have invested around USD 1 billion this month (Oct 2009) so far.
During the week Sensex gained 683 points and closed at 17326 against last week end"s close. Nifty gained 196 points and closed at 5141.
During the week BSE Mid-cap index gained 356 points, while Small-cap index gained 399 points. BSE Metal and the Bankex indices were the top gainers by 8.8% and 8.1% respectively.
Going Forward
It is expected that, Sep Quarter results will dictate the trend. Several companies are expected to raise funds through IPO and QIP in the calendar year. Investors will keenly watch Q2 results, which are expected to announce in this week by a few companies like Larsen & Tourbo, BHEL, Hero Honda, Sail, and ITC etc.
Corporate
Settlement
between
Ambani
brothers
with
Peace:
Anil
Reliance
Industries
responded
positively
to
Anil
Ambani"s
call
to
settle
all
outstanding
disputes
between
them
through
dialogue
and
discussion.
RIL said that, there is no contentious issue in the world that cannot be resolved satisfactorily through dialogue. The move comes Just days before the Supreme Court is taking up the hearing on the gas dispute between RNRL and RIL on October 20.
Axis
Bank
posted
32
per
cent
growth
in
net
profits
Axis
Bank
posted
32
per
cent
increase
in
its
net
profit
to
Rs.531.6
crore
for
the
quarter
ended
Sep
30,
2009,
as
against
Rs
402.9
crore
for
the
same
period
last
year.
Net interest income grew 26 per cent on YOY to Rs 1149 crore in the September quarter. Trading Profits is at Rs.224 crore as compared to the year-ago quarter.
Net Interest Margin improved to 3.52 per cent for the Sep quarter, as compared to 3.34% in the June quarter, 2009. The current account-savings account deposits (CASA) has increased to 39 per cent from 37 per cent a year-ago period.
On QOQ, gross non-performing assets are at 1.21 per cent as against 1.01 per cent, while on YOY, it has increased from 0.91 per cent to 1.21 per cent. Axis Banks"s net Advances in the September quarter grew by 4% as compared to the Jun quarter, 2009.
United
Spirits
set
to
raise
up
to
$350
million
via
QIP
United
Spirits
(USL)
is
planning
to
raise
funds
around
$250-350
million
through
QIP
route.
The
floor
pricing
is
at
Rs.913,
which
is
marginally
discount
to
the
scrip
price
that
closed
at
Rs.921.
This
free
issue
of
shares
will
see
USL
diluting
11-13%
stake,
and
bring
down
the
promoters
stake
to
29%.
According to the company sources, the proceedings will be used to reduce the part of the debt which is on books of $1.1billion brought for the acquisition of Whyte and Mackay in 2007.
Economy
Strong
IIP
numbers
The
industrial
output
index
recorded
a
10.4
percent
year-on-year
growth
for
the
month
of
August.
Improvement
in
IIP
numbers
is
partially
attributed
to
the
lower
base
effect
of
last
year
and
a
good
recovery
in
May
and
June
this
year.
It
is
expected
that
growth
is
more
broad-based
and
quite
evenly
spread.
Manufacturing,
power,
mining
etc
showed
a
double-digit
growth.
Commodities
rally
The
crude
oil
price
has
gone
up
to
USD
75
per
barrel
last
week
and
gold
touched
a
new
high
of
USD
1,070
per
ounce.
It
is
expected
that
the
rise
in
commodity
prices
is
due
to
weakening
of
the
dollar
as
many
large
investors
and
funds
are
putting
their
money
in
commodities
as
a
hedge
against
inflation.
The
expected
rise
in
demand
due
to
the
current
festival
season
also
sentimentally
added
to
the
rise
in
the
prices
of
commodities.
(An article by DAS CAPITAL MANAGEMENT & ADVISORS Pvt Ltd)