Market Wrap-Up - December 11, 2012 - Eastern Financiers

Markets witnessed a humdrum instigation to the week that ended almost flat with the Nifty parking just 1.5 points above prior week's close and the Sensex culminated the day flat with negligible loss of less than one tenths of a % at 19409.69 despite of assenting global markets. Asian markets ended on a positive note as investors took heart from rising factory output growth in China and falling unemployment rate in the United States that raised hopes about the outlook for the world's top two economies. Broader indices however, decisively outperformed the benchmarks clocking gains of around half a %age point. Sectoral indices ended assorted in the range of about 1-(1.5) %.

Domestic Update

- The issue of FDI in retail came to haunt the government again in Parliament with a united Opposition demanding an inquiry and reply from Prime Minister Manmohan Singh on reports of Wal-Mart spending huge money to lobby for entry into the Indian market.

- The government today said 427 companies and 104 audit firms have been found guilty of violating accounting principles and other financial irregularities during the last three years.

Sector Update

- Following the go-ahead by the Reserve Bank, banks have begun restructuring loans worth around Rs 1,300 crore given to iron ore miners and other stakeholders such as truckers and shipping lines.

- The Uttar Pradesh government announced a hike in the state advised price (SAP) for sugarcane procurement at Rs 275-290 per quintal for 2012-13. SAP is the price below which mills cannot buy cane from farmers.

- Tea exports from India fell by 20 % to 81.85 million kg in the first six months of the current fiscal due to drop in outbound shipments of the brew from North and South India. The country had shipped 102.62 million kg of tea in the April-September period of the 2011-12 fiscal.

- Even as the government is hopeful of implementing free roaming in the country from next year, Bharti Airtel said issues like varied spectrum pricing and tariff in different circles need to be studied before introducing such facilities.

- Attracting strong interest from private equity funds, the healthcare industry in India is expected to reach USD 155 billion in terms of revenues by 2017. At present the industry is pegged at USD 65 billion of which 30 deals valued at USD 754.33 million were signed last year.

- Domestic car sales fell by 8.25% to 1,58,257 units in November this year compared to 1,72,493 units in the same month last year. According to the data released by the Society of Indian Automobile Manufacturers (SIAM), motorcycle sales last month went up marginally to 8,67,518 units from 8,67,088 units in November, 2011. Total sale of vehicles across categories registered an increase of 1.79% at 15,15,600 units last month as against 14,88,894 units in November 2011.

Corporate Update

- IOC has voiced intentions to invest over Rs 2700 crore in its 2 ongoing multipurpose pipeline projects, originating from Paradip including Paradip-Raipur-Ranchi product oil pipeline and Paradip-Haldia-Durgapur LPG pipeline.

- KEC International has secured several orders worth Rs 612 crore across the company's power systems, transmission, cables and water businesses.

- Indian Overseas Bank considered and approved to raise Rs 800 crore by way of Tier 1 (Perpetual) Bonds in one or more tranches.

Source : Equity Bulls

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