Category Archives: Stock Markets

Indian Markets Recover; Asian Markets Lower

Indian Markets bounced back on Thursday with NSE Nifty strongly over 5000 mark and BSE Sensex nearly a per cent higher at 16635.

Gold was trading at 28,440 per 10 grams while Silver was nearly a per cent down at 54,700.

In today’s trading session, IDFC was up by 5% at Rs 121. Cairn India was trading higher by 3.9% at Rs 320. BHEL and Kotak Mahindra Bank were also among major gainers.

After yesterday’s rally, pharmaceutical major Ranbaxy Labs was trading lower today. PNB was also trading lower. Among other losers were auto major Maruti Suzuki and technology leader Infosys Technologies.

Indian markets are expected to close positive today. Among sectoral indices, BSE Auto was up by 101 points. Capital Goods and BSE Metals indices were also trading with decent gains.

Asia Stocks, Won Jump on Central Bank’s Move

While countries across the world are grappling to combat the constraints triggered by the long running debt crisis in Europe, central bank’s intervention has certainly given the much needed boost to global market.

If reports are to be referred to, it has been seen that the MSCI Asia Pacific Index went up by 3.5% MSCI Asia Pacific Index, while the Standard & Poor’s 500 Index futures moved up by 0.2%. It was also told that South Korea’s won was seen moving up by 1.8% and the Dollar Index nosedived by 0.2%.

Market observers are of the view that this jump was all due to the steps taken by six central banks. It has been told that Federal Reserve has reduced the cost at which dollar is being given to others through swap agreements. This step would allow purchase of dollar easy for other countries. Even the People’s Bank of China has trim down the reserve requirements after 2008.

With such steps being taken, there is common belief that global monetary policy is making a transition towards good but how long it will take to negate the problem of debt crisis is yet not known.

There was rise of 2.8% in Commonwealth Bank of Australia (CBA), and 14% in Evergrande Real Estate Group Ltd in Hong Kong. There has been Beige Book survey which has revealed that the economy has done well in recent times and that due to significant performance in manufacturing and consumer sector. This survey also made it clear that despite all the lingering fears about US recession, there are fair chances that Us economy would be able to seam through all challenges, however, unemployment rate would remain a concerning point for one and all.

It has been confirmed that the US Federal Reserve, the European Central Bank, and the central banks of the UK, Canada, Japan and Switzerland would take some concrete decision on 5 December.

Brooks Labs Earns More Than 30% On Listing

Brooks Laboratories Ltd, a pharmaceutical contract research and manufacturing services firm, got listed at Rs 110 a share as compared to its issue price of Rs 100.

At 09:58 a. m., the company’s shares trimmed the majority of its early gains and were ruling 14% up at Rs 114.

The stock price also touched an intraday high of Rs 131.10, transforming more than 30% gain in trade today.

Mr. Atul Ramchal, CMD, Brooks Labs stated that the company anticipates its top-line to go up by 35-40% during the existing fiscal year on account of superior exports.

He added that the company’s management is optimistic on recording PAT of Rs 20 cr during the subsisting financial year.

Brooks Laboratories caters to antibiotic, antituberculosis therapeutic sections.

The company said that it will utilize the proceeds for establishing a novel manufacturing division at JB SEZ Pvt Ltd, Panoli, Gujarat for a variety of pharmaceuticals formulations.

Nifty Below 5500; Sensex Declines 202 Pts

Decline in manufacturing figures in US, Europe and China hit investor opinion all over the world.

The benchmark Sensex lost 200 points with rate sensitive stock such as banking, real estate and capital goods taking a beating.

The 50-share NSE Nifty was ruling at 5,455 after slipping 62 points whereas the 30-share index BSE Sensex declined 202 points to trade at 18,112 late morning trade.

As per portfolio manager PN Vijay, worldwide events would be the vital factor for market by the next six months.

“There may be a slightly negative backdrop but substantially the action has to come within India.”

Technology scrips saw selling pressure as retardation will absolutely have impact on exports of these firms.

Infosys, TCS and Wipro shed between 1% & 2%.

Heavyweight stocks like Bharti Airtel, ITC, L&T, SBI, ICICI Bank and HDFC Bank dropped between 1% & 2%. Reliance Industries shed more than 0.5%.

But, Sun Pharma, NTPC, HUL, Cipla, Ranbaxy and GAIL topped the gainers’ charts on Nifty.

On the worldwide front, Asian bourses broadened losses – Kospi was the key loser, declining 2.4%.

Shanghai, Nikkei, Straits Times and Taiwan remained down by 1-1.7%. Hang Seng lost 0.7%.

Richard Ross, global technical analyst at Auerbach Grayson said that the genuine financial scene in US is dull, irrespective of what comes out of Washington.

Biocon Q1 Net Slumps 9% To Rs 70 Crore

For the three month period ended June 2011, Biocon’s consolidated net profit declined around 9% to Rs 70.05 crore as compared to the same period of last year.

The company’s net sales remained up by more than 10% to Rs 441.68 crore.

The earnings disappointed the street leading to more than 4% slump in the biotechnology firm’s shares during the early trade.

At 10:30 hrs, Biocon scrip remained down by 2.8% to rule at Rs 360.15 on NSE.

The company stated that the outcomes for the year-ago quarter comprised Rs 11.52 crore in profit from performances of AxiCorp gmbh that has since been sold.

During the month of April, Biocon SA had decided to sell its 70% equity stake in the German drug distribution arm.

Exclusive of the discontinued functioning, Biocon’s net profit surged 7.4% during the quarter under review.

Consolidated operating profit margin stayed flat at 27.5% year-on-year.

Biocon stated that there was a “healthy” augmentation in profit from its core manufacturing and services businesses, but there was lower licensing income recognition during Apr-June period.

Murali Krishnan, president, group finance stated, “Licensing income from our partnered programmes will see a high degree of variability given the inherent nature of licensing recognition that is linked to development and regulatory timelines.”

The company added that the licensing revenue is likely to strengthen during the coming quarters.

During April-June period, while income from Biocon’s biopharma biz surged 8% y-o-y, domestic branded formulations biz augmented 28%.

Alstom Projects Short Term Buy Call

Technical analyst Shrikant Chouhan of Kotak Securities has maintained ‘buy’ rating Alstom Projects Limited stock with short-term targets of Rs 600 and 610.

The analyst added that the interested investors can sell the stock with a stop loss of Rs 560.

Today, the stock of the company opened at Rs 581.70 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 874.85 and a low of Rs 510 on BSE.

Current EPS & P/E ratio stood at 25.19 and 22.98 respectively.

Alstom Projects India Ltd has pocketed three major deals valued at more than Rs 270 crore to set up hydroelectric projects in India.

The primary agreement has been inked with Shiga Energy Pvt Ltd for the 97 MW Tashiding hydroelectric project in West Sikkim region on the Rathang Chu river.

The second agreement has been inked with NSL Tidong Power Generation Pvt Ltd.

The third order has been inked with Haridwar Infrastructure Pvt Ltd.

All instruments will be fabricated at Alstom’s Vadodara plant in the state of Gujarat, one of the company’s biggest hydro equipment manufacturing centers internationally.

Alstom projects that the country has an economically exploitable and viable hydro prospective of around 84,000 MW.