Posts Tagged ‘Food price’

Equity News Update

Economy

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•India’s food price index rose 15.53% while the fuel price index climbed 11.14% in the year to October 9. In the prior week, annual food and fuel inflation stood at 16.37% and 11.14%, respectively.

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Pharmaceuticals

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•Wockhardt has received tentative approval from the United States Food & Drug Administration (USFDA) for marketing the Fexofenadine HCI 60 mgplus Pseudoephedrine HCL 120 mg extended release tablets, which is used for treatment of seasonal allergic rhinitis without causing drowsiness.

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Oil & Gas

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•Reliance Industries is planning to take shutdown of the Crude Distillation Unit (CDU) No.1 and coker at Jamnagar refinery for maintenance and inspection for a period of three to four weeks starting from last week of October, 2010.

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•Oil and Natural Gas Corp (ONGC) has kicked off a `8,800-crore redevelopment of the southern part of its Mumbai High fields, using a cost-effective technology to  maintain output from the prime western offshore fields.

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Capital Goods

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•Larsen & Toubro (L&T) has received order worth 1,449 crore from DB Power for the Bhaskar Group company’s Chhattisgarh project. The Balance of Plant is the sum of all equipment for safe operation as well as the technical coordination of all concerned parts of a power plant.

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•BHEL has bagged contracts worth 35 crore to set up grid-interactive solar power plants of 1100 kW capacity at eight locations in the union territory of Lakshadweep. The Lakshadweep administration has also asked the company to renovate existing solar power plants of 800k Wat these islands.

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Realty/ Construction/ Infrastructure

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•Ashoka Buildcon Ltd has announced the completion and start of toll collection on its Bhandara toll road project on National Highway No. 6. The project, with a project cost of 535 crores, is the largest toll road project commissioned till date by Ashoka Buildron. With this commissioning, the company has 18 BOT projects under operation and 5 under construction.

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•IL&FS Transportation Networks Ltd has informed that the consortium comprising of 50:50 Joint Venture between the Company and Ramky Infrastructure Ltd. had been awarded a project by the National Highways Authority of India for Four Laning in the State of Assam & Meghalaya on Design, Build, Finance, Operate and Transfer (DBFOT) pattern. The Projectis on Annuity basis with a concession period of 20 years including construction period of 3 years. The cost of the Project as per loan agreements is 824 Crores and the semi-annual Annuity for the Project is72.51 Crores.

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INTERNATIONAL NEWS

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•US Industrial production was disappointing in September, declining 0.2percent, following a 0.2 percent gain in August. The September decrease came in notably below analysts’ median projection for a 0.2 percent advance. Capacity utilization edged lower to 74.7 percent from 74.8percent in August.

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•US Housing starts surprised on the upside while permits went in the other direction. Importantly, the single-family component is the one showing unexpected modest strength. Housing starts in September rose 0.3 percent after jumping 10.5 percent the prior month. The September annualized pace of 0.610 million units came in significantly above the market forecast for 0.580 million units and is up 4.1 percent on a year-ago basis.

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•Eurozone consumer confidence indicator remained unchanged in October from the previous month. The EC’s consumer confidence indicator for euro area was at minus 11 in October, same as in the previous month. The latest reading came in line with economists’ expectation. The consumer confidence index for the EU nations slightly improved to minus 11.6 inOctober from minus 11.7 in September.

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•UK retail sales volume including automotive fuel decreased 0.2% in September from August, it was smaller than last month’s revised 0.7% fall.Economists were expecting a 0.3% increase in September.

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•China’s gross domestic product grew 9.6% between July and September compared to the same period a year earlier. That is slightly above analyst expectations for a 9.5%, but marks a slowdown from the 10.3% expansion in the June quarter.

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Equity News Round Up 30th August – 3rd September

DOMESTIC NEWS


Economy

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•The food price index rose to an annual 10.05% in the week ended August 14 as against 10.35% in the previous week.

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Oil & Gas

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•ONGC is set to get permission from the Centre to pay only a third of its total royalty obligation to the Rajasthan government on the revenues earned from the oil blocks owned by Cairn India, removing a possible obstacle to the Vedanta-Cairn deal and saving the oil explorer an annual outgo of $350 million.

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•The Supreme Court refused to restrain Vedanta Group’s bid to acquire Cairn India through an open offer of $3 billion. Billionaire Anil Agarwal-owned Vedanta Group plans to acquire around 60% stake in Cairn India for over $9 billion, including the 20% proposed to be bought by Sesa Goa.

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Telecommunication

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•Reliance Communications’ 3G Innovation Lab has started with hopes of providing the operator with applications that will drive higher data consumption among mobile phone users as the company launches third generation (3G) wireless services.

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Ship Building

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•ABG Shipyard exited Great Offshore by selling its 4.66 per cent stake in the offshore oil and gas service provider for `64.50 crore through open market transactions.

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Information Technologies.

•Tata Consultancy Services (TCS) has signed a 130 crore e-governance contract with the Madhya Pradesh government.

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•EdServ announced that it has tied up with the Canada-headquartered Corel to become its authorised online training partner. EdServ thus have the rights to train and certify students on the Corel Technology, Graphics Design and Desktop Publishing.

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Auto Ancillaries

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•Lumax Industries plans tosetuptwoautomotivelightingplants intwoyears.The first plant isbeing setupat SanandinGujarat tosupplyTataMotors’Nanocar and will become operational inthethirdquarter this fiscal.

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Power

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•Power Grid Corporation is among the three firms shortlisted by the Nigerian Government to manage the country’s electricity grid to be constructed at a cost of $ 3.5 billion.

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Tea.

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•Jayshree Tea & Industries (JTIL), a BK Birla Group company, is eyeing tea estates in Rwanda. It has decided to participate in the auctioning of tea estates that is likely to be kicked off by the Rwanda Tea Authority shortly.

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Pharmaceuticals

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•Cipla has approved the acquisition of Mumbai-based Meditab Specialities for a consideration of 133.35 crore. The acquisition of Meditab will help the company consolidate its business invariouscountries includingChina & Africa.

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INTERNATIONAL NEWS

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•US Existing home sales fell 27.2 percent in July to a 3.83 million annual rate for the lowest level in 15 years. The 3.83 million rate compares with expectations for 4.65 million. Supply at the current sales rate ballooned from June’s already swollen 8.9 months to 12.5 months for the worst reading in 11 years.

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•US New factory orders for durable goods in July rebounded 0.3 percent, following a 0.1 percent decline the prior month. The July rebound came in significantly belowthe consensus forecast for a 2.5 percent comeback.

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•US Jobless claims swung lower in the August 21 week in what should slow the deepening pessimism. Initial claims fell 31,000 for the second biggest decline of the year. Yet the 473,000 level is still on the high side when compared to levels in July, evident in the four-week average of 486,750 which is the worst since November.

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•US Gross domestic product grew at a 2.4 percent annual pace, less than forecast, after a 3.7 percent first-quarter gain that was larger than previously estimated. The U.S. economy slowed in the second quarter as a scarcity of jobs eroded consumer spending, leaving the rebound dependent on a surge in business investment.

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Weekly Update 23rd – 27th August 2010

The buying continued in the Indian markets and helped broader indices to surge to two and a half year highs. While negative sentiments in the global markets led to profit booking with major markets closing in the negative on weekly basis. The Federal Reserve Bank of Philadelphia’s general economic index dropped to the lowest reading since July 2009 to minus 7.7 this month, signaling contraction in the area covering eastern Pennsylvania, southern New Jersey and Delaware.

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The unemployment claims unexpectedly shot up by 12,000 to 500,000 last week more than the economist estimates. U.S. recovery is fading and European governments would struggle to reduce their deficits are the worrisome factors that are lingering on in the investors mind. The producer price index in U.S. increased 0.2 percent following a 0.5 percent drop in June.

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Excluding food and energy costs it climbed 0.3 percent signaling that world’s largest economy may not face deflation moving with slower growth. China, the Emerging Market frontier that saw an unparallel growth in the past is facing threats of faltering demand for exports as U.S. and European consumers are cutting spending, rising wages and the risk of bad loans from record lending by banks in the past. Japan Economy saw an expansion of an annualized 0.4 percent in the quarter ending June pushing it into third place behind the U.S. and China.

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In India, with good monsoon season the prospects of harvest have improved and now it is widely believed that inflation would come down by the end of this quarter. The primary articles index rose 14.85% in the year to 7 August 2010, lower than previous week’s annual rise of 15.66%. The food price index rose 10.35%, lower than previous week’s annual rise of 11.4%, as prices of vegetables, potatoes and onions fell.

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Going forward the domestic market is expected to remain firm with the support of foreign investment.

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However, investors will continuously monitor the global developments after some of the recent disappointing data coming from U.S.markets. Trend of Indian Stock Markets is up though other world markets are coming under pressure especially the European and US markets. Dollar index is showing some strength which is giving jitters to commodities. But till the trend of our stock markets is up, one should be playing on the long side with a cautious approach. Nifty has support between 5400-5350 and Sensex between 18000-17800 levels.

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Gold has benefited from last few weeks as investors are escalating the insurance like metals in their portfolio. However, gold silver ratio is rising once again as silver is moving in a range due to falling base metals. With the looming weakness in various economies, gold may invite bulls further. After touching many week highs, base metals washed off their previous gain on unexpected drop in Philadelphia Fed survey and bad employment data. Now the pulse of base metals is likely to be guided by the outcome of housing and durable goods data of US this week. Weakness in equity market, swelling inventories, slow recovery may weigh on the crude prices further, which already hit six week low last week. Dollar gain against euro is dampening the commodities demand, compelling CRB index to trade range bound with bearish bias.

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Nevertheless, lower level buying cannot be denied in between.

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WEEKLY Update 8th – 12th March

Here we bring you the weekly overview of the Indian as well as of the Global economy and latest global business and industry updates.

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Markets continued to build on the gains that came in the post budget week. Investors seem to have overcome the worry factors like domestic fiscal deficit & concerns over Euro Zone.

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Even the sudden burst of buying by the foreign institutional investors reflects the confidence  in the domestic economy. Food price index rose 17.87% in the 12 months to 20 February 2010, faster than the annual rise of 17.58% in the previous week but is expected to come down on the likelihood of good harvest going ahead.

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On the external economy front, India’s imports posted a strong growth for the second month running in January, signaling a pickup in domestic demand and investment. Non-oil imports registered a growth of 28.8% in January, while oil imports were up 56% from the year ago period.

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Exports jumped for a third  straight month in January, rising 11.5 per cent from a year earlier as demand  picked up in the United States and other major overseas markets.

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The data cheered the markets & eased some concerns over the optimistic economic growth outlook that came after the third quarter GDP numbers showing growth of 6%. In the nine months to December Indian economy has expanded by 6.7% & in order to meet the CSO expected growth of 7.2% in the current fiscal, it should grow by 8.8% in the last quarter ending March 2010.

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Going forward markets are expected to trade in line with the global markets & will keep a close eye on the IIP numbers that are scheduled to be announced in the coming week. However markets may face liquidity pressure with approximately 22,000 crore going out from the banking system last week & another 12,000 crore expected to go out by the week ending 13th march as a result of hike in Cash reserve ratio by 75 bps by RBI.

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Another liquidity squeeze would be from the corporate in the system as the last tranche of Advance tax is approaching i.e. 15th March. Above all the expected rush of new & follow on public offering in the near term is expected to put a continuous pressure on the liquidity front.

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The week gone by saw one of the strongest rallies in stock markets across the world which goes to show that bulls are still strong and a lot of money lying in the sidelines enters the market at every fall. Trend of Nifty and Sensex is bullish and Nifty has support between 5030-4950 and Sensex between 16700- 16400 levels. The dollar index is finding a strong resistance between 80-81 levels and if it does not cross this strongly then the rally is expected to continue.

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Commodities rose on benefits of doubt as dollar index is witnessing see saw movements amid some improvement in economic releases. However, there is still some uneasiness, regarding the health of European countries, including Spain. In metals and energy, things look balanced right now. These commodities are expected to trade in a range.

Story of agro commodities is little different.

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Despite fragile outlook, most of commodities prices soared on support at lower level buying and domestic as well as overseas demand.

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Cautious trading is advisable here, especially in spices as they have already witnessed significant upside in last few trading sessions.

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Stay Tuned for More updates

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