Indian stock market and companies daily report (March 30, 2012, Friday)

The Indian markets are expected to open in the red tracing negative opening in most of the Asian indices. Asian stocks fell for a second day as growth in U.S. durable-goods orders trailed estimates.
The US markets drifted lower over the course of the day on account of profit booking as some traders cashed in on the recent strength in the markets amid calls by a number of analysts for a correction. Traders also reacted negatively to the latest batch of U.S. economic data, including a report from the Labor Department showing that weekly jobless claims came in above economist estimates. However the indices recovered significantly in the later sessions and eventually ended up near the opening.
Indian shares extended losses for a second consecutive session on Thursday, as concerns about growth prospects in the world's two largest economies prompted investors to square off long positions on the expiry of March series derivative contracts.

Markets Today
The trend deciding level for the day is 17,136/5,200 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17,232 – 17,342/5,231 – 5,267 levels. However, if NIFTY trades below 17,136/5,200 levels for the first half-an-hour of trade then it may correct up to 17,026 – 16,930/5,164 – 5,133 levels.

TCS to provide banking solution - BaNCS to AmBank, Malaysia
TCS' financial services platform, TCS BaNCS, will replace Malaysian AmBank's core banking engine. This integrated banking suite, spanning conventional and Islamic banking, will support both retail banking and lending functionalities. TCS BaNCS will help expand AmBank's business into new areas. It will also enable development and the scalability required to meet both current and future market and regulatory needs. Due to this deployment, TCS may soon have a regional support centre for TCS BaNCS in Kuala Lumpur. We maintain Accumulate rating on the stock with a target price of Rs.1,262.

NTPC Tamil Nadu Energy Co. commissions Unit I of Vallur Power Project
NTPC Tamil Nadu Energy Co. Ltd. a JV of NTPC Ltd. and TNEB has commissioned Unit I (500 MW) of Vallur Thermal Power Project on March 28, 2012. With this, the total capacity of NTPC group has become 36,514 MW. In all NTPC group has commissioned 2,320MW of capacity in FY2012 till date, which is below the initial target of 4,320MW. At the CMP, the stock is trading at 1.6x FY2013E P/BV. We maintain a Buy on the stock with a Target Price of Rs.199.

Economic and Political News
- February infra output up 6.8% yoy
- Indian GDP to grow at 7.5% in FY2013: Fitch
- Government will clarify stance on P-Notes taxation: Finance Minister

Corporate News
- Tata Motors hikes commercial vehicle prices by up to Rs.60,000
- Tata Motors to invest Rs.600cr on defense vehicles
- NTPC to halt expansion of gas-based projects
- Bharat Forge earmarks Rs.100cr to develop artillery gun

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Share Prices in India

A share price is the value of a single or a number of shares or saleable stocks of a particular company. Once an investor has purchased the shares, he becomes a Share holder of that company that has issued the share.

The research analysts believe that the share price deviation results on the basis of seasonal and temporal patterns. It has been noted that the returns is significantly more then what it is in other months and on Mondays the share price is down more than on any other day.

These effects have been observed by the research people on the basis of these fluctuations.

The technical analysis to extract information based on future share price movements from historical data. As a result of such an unpredictable or behavior the huge amount of data available researchers for analysis causes the fluctuations.

The causes an element of unpredictability in the share prices, depending on what the market has achieved so far. When viwed over a long duration the stock prices are directly or indirectly related or the dividends to the earnings, and cause a fluctuation in the market value.

The desire of the investors has led into trading of shares. The stock exchange is the place, where buying/selling of the stocks take place.

A stock broker usually represents the stock trader, who buys the shares on his/her behalf. A company lists its shares on the BSE or NSE stock exchange by maintaining the listing requirements of the particular stock exchange.

In India, BSE and NSE hold the rights for all its investors.

Small companies that cannot qualify or cannot meet the listing requirements of the major exchanges can be traded over the counter using the off-exchange mechanism in which trading can take place directly between both the parties.

When an investor wants to buy shares, he purchases them via the stock broker. The brokers normally charge a fixed amount of commission over the prices. Another way to buy shares is by purchasing them directly from the company at the originally listed prices.

A direct public offering is an initial public offering in which the shares are directly purchased from the company without the aid of brokers.

The share prices are normally not affected when the stock broker buys the shares on the behest of the investor.

Selling stock is similar to buying it. Generally the investor will buy when the share prices are low and sell them when the share prices are high. Even while purchasing the broker has a certain fee depending on the type of brokerage services that he is offering to the investor.

The share prices play an important role in the profit or loss statement of the investor.  So, after any transactions, the seller is then entitled to all the money, but he must make sure to keep a regular track of his earnings.

Daily Report for Indian Stock Market

Vision on markets today

A lower than expected economic growth in the third quarter led to bearish outlook on the Street yesterday. The BSE Sensex plunged over 250 points from the day's high to fall into negative province in afternoon session. The Sensex closed up 21.56 points at 17752.68, while the broader Nifty index up 9.7 points at 5385.20. The third quarter gross domestic product (GDP) grew at 6.1%, falling short of consent guess that had pegged GDP growth at 6.3%. This is the slowest pace of economic growth since 2008. BSE Midcap Index was up 1.10% and BSE Smallcap Index moved 0.62% higher. Amongst the sectoral indices, BSE Oil&Gas Index gained 2.53%, BSE Power Index moved 0.28% higher and BSE Realty Index advanced 1.10%. Whereas BSE Capital Goods Index was down 1.59% and BSE Bankex slipped 0.59%. The Major Sensex gainers were ONGC, Sterlite Industries, Tata steel, Reliance Industries, and Wipro up 3.46%, 2.98%, 2.90%, 2.84% and 2.72%. Whereas Larsen & Toubro, Jindal Steel, HDFC Bank, Maruti Suzuki and Tata Motors were down 2.91%, 1.81%, 2.34%, 1.02%, 0.68% respectively. Shares of ONGC pitch higher on reports that the government is set to initiate its FPO through share auction. The government is likely to mount around Rs.124Bn.

Market breadth was muscular at ~1.23x as investors bought large lid stocks. On interim basis, FIIs bought equity of Rs.5.80Bn while domestic institutions sold equity of Rs.4.31Bn.

Asian markets are mixed today, as Japanese stocks are increasing while Chinese are down after a weak close for the US markets.

We anticipate a cautious opening for the Indian markets which tumbled on profit taking from the investors yesterday. Weak GDP data announced yesterday may oppose investors for strong buying in the Indian markets today.

Economic and Mutual Improvement

The government's financial deficit target for the current year has been violated in January, and with the numbers for the two months still to come, the gap between expenditure and revenue may extend further. At the end of the 10 months ending January, the financial deficit was Rs 4, 34,933 crore or 105.4% of the target, the Controller General of Accounts (CGA) said.

Bustling stock

In one of the prime property covenant in the country in recent years, the real estate division of Adani Enterprises (AEL) has bought a two-acre land parcel in Mumbai from property developer HDIL for Rs 900 crore. The plot is situated at the city’s Andheri suburb. It was component of a large mixed-use project being developed by HDIL, sources said.

ONGC’s overseas investigation arm ONGC Videsh Ltd (OVL) and GAIL India have confirmed their awareness in bidding for UK-based Cove Energy. The association may have to quote a price in surplus of $1.77 billion, the amount already quoted by Thai rigid PTT.

A joint venture (JV) between BGR Energy Systems and Hitachi Power Europe has appeared as the lowest bidder for NTPC’s Rs 16,000-crore supercritical boiler order. BHEL had appeared as the second-lowest bidder, while a JV between Larsen & Toubro (L&T) and Mitsubishi Heavy Industries was placed third lowest, an official from NTPC said.

Arvind Ltd, the textile chief is looking to liquidate about 1.5 million square meters of its enormous tracts of land in Gujarat and Karnataka with the predictable revenues of Rs 5000 crore over the next two years' time.

State-owned oil companies today hiked jet fuel price by 3.2% on the back of firming up of global oil tariff.

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