Market Analysis: Weekly roundup till Jul 31
Sensex lost 1.4 pc and closed at 17,868 during the week, while Nifty ended the week at 5,361 down by 1.6 pc over its previous weekend"s close. During the week BSE Mid-cap and Small-cap indices were lost 0.3 pc and 1 pc respectively. The BSE Consumer Durables and PSU indices gained 0.5% each during the week, where BSE Capital Goods and Oil & Gas indices were down by 4.8% and 3.5 pc respectively.
During the week, the US stocks down as compared to previous week on the back of economy"s growth is at 2.4 pc in the second quarter which is lower than estimated at 2.5 pc
Going Forward
The key domestic triggers with the first quarter results would be almost over and investors could take cues from overseas markets, mainly the US, which is expected some major economic readings, including the job data. We believe that, US economy is likely to see renewed growth weakness in consumer confidence, high indebtness, and sluggish wage growth points towards weakness in private consumption.
Corporate
NMDC
Eyes
two
mines
in
Russia
for
Rs
1,881
crore
NMDC
is
planning
to
buy
coking
coal
mines
in
Russia
from
Kolmar
for
$400
million
(Rs.1881
crore),
which
is
underground
mine,
produces
5
lakh
tonne
coke
in
a
year.
The
reserves
of
the
two
mines
stand
at
353
million
tonne,
having
both
soft
and
hard
coking
coal
resources.
The
developing
of
the
mines
will
be
an
additional
sum
which
is
equal
to
the
cost
of
acquisition.
Presently, Intergeo holds 51 pc of Kolmar, but it is not clear whether NMDC picks the entire stake of it. The focus area of the NMDC are iron ore, coal, rock phosphate and potash. In Australia, NMDC plans to bid for Atlas Iron"s Ridley iron ore project.
Maruti
Suzuki
June
quarter
net
profit
down
20
pc
Maruti
Suzuki
June
quarter,
2010
net
profit
has
declined
by
20
per
cent
on
YOY
to
Rs
465
crore
from
Rs
583
crore.
On
QOQ,
it
has
declined
by
29
per
cent
from
Rs
656
crore.
Decline in profits is due to increased local competition, declining exports, high royalty fee and high raw material costs.
The sale has increased 27 pc on YOY, to Rs 8231 crore from Rs 6493 crore. On QOQ it has declined by 2 pc from Rs 8424.5 crore. Car sales grew by 23 pc to 2,42,887 units for the June 2010 quarter, but market share fell down to 47.5 pc to 55 pc in the local market.
Hero Honda Q1 net dips 1.6 pc on high costs, competition
Hero Honda has posted 12pc increase in its June quarter, 2010 sales on YoY basis to Rs.4296 crore from Rs 3822 crore. On QoQ, it has increased by 4pc from Rs 4122 crore. Net profit on YoY basis declined by 2 per cent to Rs 491 crore from Rs 500 crore. On QoQ, it has declined by 18pc from Rs 598 crore.
The EBITDA has declined by 6 per cent on YOY to Rs 660 crore from Rs 703 crore, on QoQ; it has declined by 16pc from Rs 789 crore. High raw material costs, poor volume growth and royalty payments affected the performance of Hero Honda. The management expects to produce an additional 4 lakh units from Haridwar to take the total production to 18 lakh two wheelers this fiscal.
Economy
Core
sector
grows
by
3.4
pc,
slowest
in
ten
months
Growth
in
six
key
infrastructure
sectors,
which
compromise
the
core
sector,
decelerated
to
a
10
month
low
of
3.4
per
cent
in
June.
This
is
due
to
high
statistical
base
effect
of
last
year.
This
is
the
third
consecutive
month
in
decline
in
growth
for
the
core
sector.
The
core
sector,
which
has
a
weight
of
26.6
per
cent
in
The
IIP
stood
at
6.3
per
cent
in
the
same
period.
(An article by DAS CAPITAL MANAGEMENT & ADVISORS Pvt Ltd)