Nifty Daily For 17th July 2013

               Nifty opened gap down of 100 points at 5930 on the use of new weapon from RBI's armor. The RBI increased the overnight lending rates or the Marginal Standing Facility (MSF) rate by 200bps or 2% yesterday. RBI has been weary of curbing the rupee volatility and been cracking the hunter on the speculators since rupee touched the all time low of 61.21. The MSF rate is one at which banks borrow from RBI for overnight cash crisis against the government securities like treasury bills,  bonds etc. The rate which was earlier pegged to Repo+1% i.e. 8.25%  is suddenly Repo+3% to 10.25%. This is going to increase the bank borrowing cost which will be passed on to the corporates. The growth is slowing, inflation is under control but the violent rupee movement is hurting where India is at its weakest i.e. current account deficit. Under this rule banks can collectively by only 7500 Cr. at MSF rate and anything above it will cost 2% more. In short term it has very negative implications for both markets and economy. The bank nifty opened and stayed 4% down with major bank down anything between 5-8%. 

                 RBI is trying to suck out the liquidity of rupee so as to make it scarce and thus appreciating it against USD. How far they succeed will have to be seen! In short I feel the selling of today might just have factored in this action and the no change in policy rate stance on 30th July RBI meeting. The market will consolidate within the range of 5850-6080. As long as 5900 is protected the market will move higher.

                     The support for nifty is at 5940-5900-5865 and the resistance lies at 5985-6025-6085. Nifty July Future has been trading at 7-8 points premium to the spot. The implied volatility on the Nifty July Options of ATM strike calls were at 16.33 and for puts were at 16.50. India VIX closed at 18.99. PCR for Nifty based on open interest was at 1.64 and PCR for the day based on volumes was at 1.22 for the market.

Cash Market:

FII                   2503.01 - 2860.41 = (357.4) Cr.

DII                 1371.11 - 1581.66 = (210.55) Cr.

FII Derivatives Market:

	buy	sell	net
INDEX FUTURES	2055.72	2320.55	-264.82
INDEX OPTIONS	16601.54	15081.35	1520.19
STOCK FUTURES	1911.33	2349.62	-438.30
STOCK OPTIONS	1198.65	1205.26	-6.61

Corporate Action:

 

Ex-Date	Company	Purpose
17-Jul-13	The Indian Hotels Company Limited	Annual General Meeting/Dividend Re 0.80/- Per Share
17-Jul-13	UltraTech Cement Limited	Annual General Meeting And Dividend Rs.9/- Per Share
17-Jul-13	Carborundum Universal Limited	Annual General Meeting/Final Dividend Re.0.75 Per Equity Share
17-Jul-13	LCC Infotech Limited	Annual General Meeting
17-Jul-13	OnMobile Global Limited	Annual General Meeting/Dividend Rs. 1.50/- Per Share
17-Jul-13	Jindal Poly Films Limited	Scheme Of Demerger
17-Jul-13	Norben Tea & Exports Limited	Annual General Meeting
17-Jul-13	Phillips Carbon Black Limited	Annual General Meeting/Dividend Re 0.50/- Per Share
17-Jul-13	Tata Communications Limited	Annual General Meeting/Dividend Rs 3/- Per Share
17-Jul-13	Aro Granite Industries Limited	Annual General Meeting / Dividend - Re 1/- Per Share
17-Jul-13	Gangotri Textiles Limited	Annual General Meeting (Bc Dates Revised)
17-Jul-13	Panasonic Carbon India Company Limited	Annual General Meeting And Dividend Rs.7/- Per Share
17-Jul-13	Shriram City Union Finance Limited	Annual General Meeting And Final Dividend Rs 6 Per Equity Share
17-Jul-13	Eros International Media Limited	Annual General Meeting
17-Jul-13	WABCO India Limited	Annual General Meeting And Dividend Rs.5/- Per Share
17-Jul-13	IFB Agro Industries Limited	Annual General Meeting
17-Jul-13	DCM Shriram Consolidated Limited	Annual General Meeting / Dividend - Re 0.80/- Per Share
17-Jul-13	Dhunseri Petrochem & Tea Limited	Annual General Meeting / Dividend Rs.4.50/- Per Equity Share
17-Jul-13	Tube Investments of India Limited	Annual General Meeting / Dividend Re.0.50/- Per Equity Share
17-Jul-13	Berger Paints (I) Limited	Annual General Meeting And Dividend Rs.1.80 Per Share
17-Jul-13	Seshasayee Paper and Boards Limited	Dividend-Rs.4/- Per Share
17-Jul-13	Gujarat Sidhee Cement Limited	Annual General Meeting / Dividend - Re 1/- Per Share
17-Jul-13	SRF Limited	Annual General Meeting

Stocks In News:

Results Today - HDFC Bank , Heritage Foods , Hinduja Foundaries, HOV Services , Liberty Phosphates, Zensar Technologies

FDI cap review
-13 out of 20 sectors cleared for foreign direct investment (FDI) with caveats
-100 percent FDI cap in telecom sector cleared ( Bharti Airtel , Idea Cellular in focus)
-Insurance FDI cap to be hiked to 49 percent through auto route but this will need cabinet nod
-Did not consider media FDI related caps
-No change in civil aviation
-Defence production FDI hike also cleared with caveats ( M&M , L&T in focus)
-Defence Production FDI: 26 percent via foreign investment promotion board (FIPB) and 49 percent via Cabinet Committee on Security (CCS) nod
-Petroleum & Natural gas to be through automatic route at 49 percent
-Commodity exchanges FDI to be through auto route at 49 percent
-Power exchanges FDI at 49 percent now through automatic route
-FDI cap for power exchanges retained; brought under automatic route
-Stock exchanges FDI cap at 49 percent now through automatic route
-Tea sector FDI cap at 100 percent; up to 49 percent under automatic route
-Single brand up to 49 percent under automatic route; beyond 49 percent through FIPB
-Will also give clarity on multi-brand retail very soon
-More clarity on single-brand retail norms will follow

Jupiter Metals conditional open offer for Kalindee Rail at Rs 65/share
-Opens on September 3, closes on September 17 (last date to revise open offer price is August 29)
-Speculation is that Jupiter may revise the price upwards

Oil Ministry sources say:-Fertiliser ministry disapproves equal status to power sector
-Finance ministry agreed to upgrade priority status of power space
-Gas diversion to result in importing 4-5 mt of fertiliser
-Fertiliser Ministry can also make up for KG-D6 gas shortfall with RLNG
-Higher fertiliser imports may hike subsidy burden by Rs 5,400 crore
-Diversion of gas to help power sector by Rs 11,300 crore
-Up to power & fertiliser ministry to decide on utilising KG-D6 gas
-Empowered group of ministers (EGoM) to find solution for gas starved power plants
-1 proposal to divert 9 mmscmd Gas from power to fertiliser sector
Alert: EGoM on KG-D6 gas utilisation to meet today

Government:
-Oil companies' July 16-31 subsidised fuel sale loss at Rs 362 crore/day
-PSU retailers July 16-31 loss on diesel sale at Rs 9.45/litre

Bajaj Auto says:
-Around 710 workers reported yesterday
-Approximately 91 percent of requirement of Pulsar, Avenger and KTM achieved
-To produce 1,700 at Chakan and 1,050 Pulsars at Waluj plant

Karur Vysya Bank :
-To cut base rate by 25 bps to 10.50 percent with effect from tomorrow
-To cut BPLR by 25 bps to 15.50 percent with effect from tomorrow

Other stocks and sectors that are in news today:
-FDA scanner for 2 more Ranbaxy Labs plants ET (Violations reported in Tonasa and Mohali Plant)
-Lenders to ok Winsome Diamonds and Jewellery 's Rs 4000 crore CDR package FE
- Texmaco Rail eyes strategic alliance with Kalindee Rail ET
-MAIL seeks Rs 276 crore damages from HDIL ET (hearing today)
-Posco shelves plan to build Rs 32,000 crore steel plant in Karnataka
- IOC roadshow in Asia, Europe to raise USD 500 million via bonds
-Ex-Dividend: Ultratech Cement Rs 9/share
-Pantaloons Fashion & Retail to list today

Development Credit Bank ( DCB ) Q1
-Net profit at Rs 43 Crore versus Rs 19 Crore (YoY)
-NII at Rs 83 Crore versus Rs 64 Crore (YoY)
-Gross NPA at 3.41 percent versus 3.18 percent (QoQ)
-Net NPA at 0.84 percent versus 0.75 percent (QoQ)
-NIM at 3.44 percent versus 3.18 percent (YoY)

Sabero Organics Q1
-Net profit at Rs 9.6 crore versus loss of Rs 1.8 crore (YoY)
-Net sales at Rs 174.1 crore versus Rs 121.2 crore (YoY)

Stocks in Ban Period:

NIL

Source:moneycontrol.com , nseindia.com