Archive for the ‘Pharma’ Category

Equity News Round Up 11th – 15th October

DOMESTIC NEWS

Economy

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•Food inflation eased marginally to 16.24% for the week ended September 25, from 16.44% in the previous week, as improved supplies lowered prices.

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Capital Goods

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•BHEL has bagged a `3,700-crore from Karnataka Power Corporation Ltd for setting up the 700 MW Bellary Thermal Power Station in Karnataka.

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•Lanco Infratech informed that its Vidarbha power project based in Maharashtra, has achieved financial closure. The company has raised debt to the tune of `5,549 crore to fund the project which has an estimated cost of around `6,936 crore. The rest of requirement is funded by equity of `1,387 crore.

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•Larsen & Toubro (L&T) has bagged `1,585 crore orders in July-September period from the construction segment. Of the `1,585 croreorders, `435 crore order is for construction of building projects fromleading developers while `781 crore orders is from “clients forconstruction of hotel, office building and add on orders from its ongoing airport and commercial building projects”.

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Automobile

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•Hero Honda has launched a limited edition of its 100cc motorcyclePassion Pro, priced at `46,300 (ex-showroom Delhi).

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Realty/ Construction

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•IVRCL Infrastructure and Projects said its various divisions have wonorders worth `1,120 crore from sectors including power and transportation. The company’s water division bagged the highest `451crore order, followed by `440 crore by building divisions,`136 crore by transportation division and `92 crore by power division.

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•Punj Lloyd Group has bagged a `539-crore contract from the state owned gas utility GAIL India for laying a natural gas pipeline from Dabholto Bangalore. The project will be executed over a period of 13 months.

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Pharmaceutical

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•Cadila has got approval from US health regulator to market high blood pressure treatment tablets, Losartan Potassium and Losartan Potassium and HCTZ in the American market. The US Food and Drug Administration approval has been granted to the firm’s subsidiary Zydus Cadila, for Losartan Potassium tablets in the strengths of 25 mg, 50 mg and 100 mg and for Losartan Potassium and Hydrochlorothiazide tablets in the strengths of 50/ 12.5 mg and 100/25 mg.

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Power

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•NTPC may invest over `10,000 crore to set up a 2,640 megawatt (Mw)thermal power project at Gidarbaha in Punjab. The Project shall be setup as regional power project by NTPC and would also be the company’s first in the state.

INTERNATIONAL NEWS

•US Pending Home Sales Index jumped more than four percent for asecond straight month, to 82.3 in August (2001 = 100). The prior month was revised to 78.9, shaving July’s gain to 4.5 percent. The readings point to a second straight jump for existing home sales which surged nearly eight percent in August.

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•US non-farm payroll employment fell by 95,000 jobs in September following a revised decrease of 57,000 jobs in August. Economists had expected employment to come in flat compared to the loss of 54,000 jobs originally reported for the previous month.

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•UK output price index rose 4.4% annually in September, compared with a4.7% gain in August. The increase was a touch higher than the expected 4.3% rise. Output prices gained 0.3% month-on-month after stagnating in August. Excluding food, beverages, tobacco and petroleum, output prices increased 4.6% annually.

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•The Japanese Cabinet approved a 5.05 trillion yen ($62 billion) new stimulus package to boost the economy amid widespread concerns that it could slip back into recession. The new package, which will befinanced by an extra budget, is aimed at addressing labor market issues,social welfare and healthcare services. The government is trying to finalize this additional budget by the end of this month.

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INDEX – The Measuring Barometer

Hello Friends here we come up with another write up on “SMC Gyan Series”.

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INDEX - The Measuring Barometer

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Topic is  INDEX – The Measuring Barometer.

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Here, we would read that what is MCX Comdex and what are the advantages of Index.

MCX COMDEX captures diversified sectors encompassing futures contracts drawn on metals, energy and agricultural commodities that are traded on MCX.

It is the significant barometer for the performance of commodities market and would be an ideal investment tool in commodities market over a period of time.

The MCX COMDEX futures give users the ability to efficiently hedge commodity and inflation exposure and lay off residual risk.

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Protection can be established regardless of overall market direction.

MCX COMDEX, India’s first composite commodity futures index was launched on June 7, 2005.

Advantage:

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Investors who own stocks of companies having exposure to primary commodities

could use the COMDEX as a guide to hedge their risk in the commodity exchange,

thereby bringing stability to the financial markets and strengthening linkages.

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Weight age (%) of Commodities in MCX COMDEX:

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On the MCX-COMDEX, Agricultural sub-group carries 20% weighting.

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It includes ref. soy oil, potato, chana, crude palm oil, kapaskhali & mentha oil.

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Metals also carry 40% weighting and comprise gold, silver, copper, zinc, aluminium, nickel & lead.

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The energy sub-group consists of crude oil & natural gas and carries 40% weighting.

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Weight age (%) of Commodities in MCX COMDEX:

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Performance 2009:

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The chart above depicts that with the bull-run in commodities,

this index has outperformed throughout in the year 2009,

as compared to other years, where they had shown a sideways movement.

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Also Group Indices for MCX AGRI, MCX METAL & MCX ENERGY on commodity futures prices have been developed

to represent different commodity segments as traded on the exchange.

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Performance 2009

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

Indian Stocks Rose After Govt Approved Disinvestment Plans

Indian Stocks Rose After Govt Approved Disinvestment Plans

Indian Stocks Rose After Govt Approved Disinvestment Plans

Indian stocks rose, extending the benchmark index’s longest string of gains in five weeks, after the government approved a plan to sell more shares in state- controlled companies, helping it raise funds to boost spending.

MMTC Ltd., India’s biggest state-owned trading company, surged 20 percent, the most in 10 months.

Rico Auto Industries Ltd., an auto component maker that supplies General Motors Co. and Ford Motor Co., climbed 5.1 percent after workers ended a 45-day strike.

🙂

The Bombay Stock Exchange’s Sensitive Index, or Sensex, rose 94.38, or 0.6 percent, to 16,158.28.
The measure this week gained 1.7 percent, snapping two weeks of losses.

The S&P CNX Nifty Index on the National Stock Exchange rose 0.6 percent to 4,796.15.
The BSE 200 Index added 1.1 percent to 2,011.08.

🙂

“The disinvestment move will help moderate India’s fiscal deficit,” said Jagannadham Thunuguntla, head of equities at SMC Capitals Ltd. in New Delhi.

“Also, it may help in higher GDP growth led by increased government spending.”

🙂

MMTC soared 20 percent to 36,146.85 rupees, the most since Dec. 17.
State Trading Corp., the No. 2, leapt 15 percent to 353.6 rupees.

NMDC Ltd., India’s largest iron-ore producer, climbed 10 percent to 338 rupees. 

Hindustan Copper Ltd., India’s biggest copper miner, 99.59 percent state-owned, gained 10 percent to 256.35 rupees.

🙂

Budget Deficit

The government owns 99.33 percent in MMTC and 91.02 percent in State Trading, while it holds 98.38 percent in NMDC, according to filings to the Bombay Stock Exchange.

The government will use the money raised from the sale of shares of state companies for social spending.

India’s fiscal deficit reached 6 percent of gross domestic product in the year ended March 31, surpassing the 2.5 percent government target.

The key Sensitive stock index has more than doubled from this year’s lowest level, in March.

Govt’s stand to sell state assets and accept more overseas funds into insurance and banking, has strengthened, after Prime Minister Manmohan Singh resounding re-election victory in May.

🙂


Imposition of Addl. Margin on Turmeric

Hello Friends here we come up with the Latest Agri updates in the country.

Imposition of Addl. Margin on Turmeric

Imposition of Addl. Margin on Turmeric

Imposition of Addl. Margin on Turmeric

As per notification & NCDEX Bye laws, Rules and Regulations of the Exchange, in addition to existing margins, special margin of 10% on long side will further be imposed on all running contracts of Turmeric (Symbol : TMCFGRNZM), effective from the beginning of trading day November 4, 2009.

Thus the total special margin on the long side of all running contracts and yet to be launched contracts in Turmeric shall be 20% with effect from November 4, 2009.

🙂

 

In Other major Agri Updates we can see that Corn, Soybeans have Dropped as rally to One-Week High may erode Demand whereas Strong Demand has kept Cardamom firm.

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Corn, Soybeans Drop as Rally to One-Week High

May Erode Demand :

Corn and soybeans declined for the first time in three days on speculation that their rally to one-week highs may reduce demand for U.S. supplies.

Wheat climbed. Corn gained 6.6 percent the past two days and the oil-seed rose 3.5 percent after wet, freezing weather delayed Midwest harvests last month.

As well production in the U.S. may be curbed by above factors. USA is the largest grower and exporter of both crops.

The U.S. Department of Agriculture will update its crop forecasts on Nov. 10.

The soybean crop will reach 3.325 billion bushels, less than the Oct. 7 forecast of 3.411 billion, the Linn Group said.

Last month, the USDA predicted a record 3.25 billion bushels, up from 2.967 billion collected in 2008.

🙂

In another Update,

Demand keeps cardamom firm :

The average cardamom prices vacillated between Rs 670 and Rs 710 a kg during last week at auctions held in Kerala and Tamil Nadu and good demand despite heavy arrivals.

In fact, the arrivals at the KCPMC auction on Sunday at Vandanmettu were the highest with 75 tonnes, ever since the commencement of e-auction in December 2007.

Buyers both domestic and export were active.

Around 35 to 40 tonnes of cardamom was bought by exporters. North Indian buyers were covering for their requirements for the winter.

They were actively buying on the apprehension that the prices might go up further in the coming days due to a likely squeeze in supply once the peak harvesting season gets over.

The weighted average price as on November 1, 2009 stood at Rs 681.11 a kg as against Rs 593.83 a kg on the same day last season.

🙂

Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

Downward Movement Hits Indian Equities Markets

Downward Movement Hits Indian Equities Markets

Downward Movement Hits Indian Equities Markets

Indian equities markets entered into a consolidation zone with analysts terming the downward movement as long expected.

A benchmark index fell 5.44 percent from its last weekly close and ended trade below the 16,000-mark.

😦

The 30-share sensitive index (Sensex) ended 914.53 points, or 5.44 percent lower, at 15,896.28 points at the weekly close Friday, as opposed to the previous week’s close at 16,810.81 points.

The broader S&P CNX Nifty of the National Stock Exchange (NSE), too slipped, closing at 4,711.7 points, down 5.7 percent from its last weekly close.

However, companies with large-to-medium market capitalization saw greater selling with the BSE midcap index ending 7.36 percent lower and the BSE smallcap index losing 8.01 percent over the last week.

“This consolidation was expected anyways as the valuations were not commensurate with the earnings of corporates. To an extent a correction in valuations was warranted,” said Jagannadham Thunuguntla, equities head of brokerage and capital markets consultancy SMC Capital.

The markets started on a cautious note Monday ahead of the Reserve Bank of India‘s mid-year policy review Tuesday.

The Sensex ended a volatile day at 16,740.50 points — 70.31 points or 0.42 percent lower than Friday’s close.

The Nifty followed a similar trajectory and ended in negative at 4,970.9 points, down 0.52 percent.

Both benchmark indices nosedived Tuesday as the RBI indicated in its policy review that it would start tightening the monetary policy and look at exiting the stimulus measures.

🙂

Data with markets watchdog Securities and Exchange Board of India (SEBI) showed that foreign funds were net sellers during the week, having sold scrips worth $12.8 million.

The top gainers this week on the Sensex were

Tata Motors (up 7.2 percent),
Ranbaxy Labs (up 4.8 percent),
Wipro (up 2.9 percent),
Grasim (up 1.6 percent) and
Hindustan Unilever (up 1 percent).

The top losers were :

DLF (down 18.5 percent),
Reliance Capital (down 14.5 percent),
Reliance Infrastructure (down 14.2 percent),
Hindalco (down 13.9 percent) and
Reliance Power (down 12.9 percent).

“Broadly speaking only about one percent of the quarterly results show a sound top line growth. Profits might have increased, but that is not because of increase in core operations – cost cutting and other income have contributed towards it,” said Thunuguntla.

🙂

UNCTAD Projects 5% Growth for India :(

Indian economy

The UN body United Nations Conference on Trade and Development (UNCTAD) on Monday projected a lower growth of five per cent for India in 2009 as against Reserve Bank of India (RBI) and Government”s forecast of more than six per cent in the current financial year.

😦

Releasing its “Trade and Development Report 2009” in New Delhi, UNCTAD report said that it expected Indian economy to grow by five per cent in 2009.

The economy grew by 6.7 per cent in 2008-09 fiscal while in the first quarter of the 2009-10 financial year the Gross Domestic Product (GDP) expanded at 6.1 per cent.

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However, the UNCTAD report listed India as the second fastest growing economy after China, in the backdrop of the global economy set to shrink by 2.7 per cent in 2009.

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“The economic winter is far from over: tumbling profits in the real economy, previous over-investment in real estate and rising unemployment will continue to constrain private consumption and investment for the foreseeable future.

Even economies that will grow this year, such as those of China and India, are slowing significantly compared to previous years. The crisis is unprecedented in its depth and breadth leaving virtually no country unscathed,” it said.

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Further, the report said that improvement of certain financial indicators reached in the first quarter of 2009 as well as falling interest rate spreads on emerging-market debt and corporate bonds and the rebound in securities and commodity prices were seen as green shoots of economic recovery.

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UNCTAD has said the growth rate of developed nations is expected to contract by 4.1 per cent in 2009, while it is likely to decelerate to 1.3 per cent in 2009 from 5.4 per cent in 2008 for developing countries.

😦

The UN body United Nations Conference on Trade and Development (UNCTAD) on Monday projected a lower growth of five per cent for India in 2009 as against Reserve Bank of India (RBI) and Government”s forecast of more than six per cent in the current financial year.

Releasing its “Trade and Development Report 2009” in New Delhi, UNCTAD report said that it expected Indian economy to grow by five per cent in 2009. The economy grew by 6.7 per cent in 2008-09 fiscal while in the first quarter of the 2009-10 financial year the Gross Domestic Product (GDP) expanded at 6.1 per cent. However, the UNCTAD report listed India as the second fastest growing economy after China, in the backdrop of the global economy set to shrink by 2.7 per cent in 2009.

“The economic winter is far from over: tumbling profits in the real economy, previous over-investment in real estate and rising unemployment will continue to constrain private consumption and investment for the foreseeable future. Even economies that will grow this year, such as those of China and India, are slowing significantly compared to previous years. The crisis is unprecedented in its depth and breadth leaving virtually no country unscathed,” it said.

Further, the report said that improvement of certain financial indicators reached in the first quarter of 2009 as well as falling interest rate spreads on emerging-market debt and corporate bonds and the rebound in securities and commodity prices were seen as green shoots of economic recovery.

UNCTAD has said the growth rate of developed nations is expected to contract by 4.1 per cent in 2009, while it is likely to decelerate to 1.3 per cent in 2009 from 5.4 per cent in 2008 for developing countries.

Govt all set to introduce a new IIP in about 4 months :)

indian industry

As the government is expected to introduce a new index of industrial production (IIP) in around 4 months, the benchmark for measuring industrial production in India is all set to change.

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However, the new index will use 2004-05 as the base year of calculation instead of 1993-94.

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The number of commodities will go up to around 850, from 543 whereas nearly 30% of the existing commodities will be swapped by new ones.

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It’ll certainly be a much more recent picture, no question about it.

As in recent times, the product composition has changed dramatically, so both the widening and the deepening of the economy will be reflected.

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Moreover, the weight assigned to different product groups as part of the final index will also change since they are presently incompatible with the changes in production patterns.

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Such as, mobile phones are not included in the index while LCDs are not included in television sales.

Moreover, the weightage given to autos is well below their importance in the economy.

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However, it is said that the weightages will change in order to fix these like the weight for basic goods will rise by 5% points while that for capital goods will rise by 5.7% points.

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Morever, the intermediate goods will see the biggest hit, losing 7.7% points and consumer durables will increase in weight while consumer non durables will be lighter by 5% points.

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Change in weights of different commodity groups:

Change in weights of different commodity groups

Similarly, electricity will rise by close to 2% points but manufacturing will take a hit of over 7.5% points.

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The new IIP index will definitely give us a better idea of the kind of changes industrial production has undergone in the past decade.

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However, collection of the base data in time would pose as a major challenge for the government as different departments are responsible for collecting the data.

In recent times, collecting data from the manufacturing sector, is already turning out to be a problem as companies aren’t responding fast enough.

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🙂