HINDUJA BANK (SWITZERLAND) LTD BUILDING WEALTH, ENABLING ENTERPRISE 12 September 2014 DAILY MARKET COMMENTS INDIA SUMMARY Benchmark share indices snapped their three-day losing streak to end marginally higher as investors adopted a wait-and-watch stance ahead of macro economic data due for release later today. The 30- share Sensex ended higher by 65 points at 27,061 and the 50-share Nifty gained 20 points at 8,106. Showing signs of sluggishness in the economy, growth rate of industrial production slowed to 0.5% versus 3.4% in the month of June. Inflation as measured by CPI declined to 7.8% in August from 7.96% in July. Shares of Maruti Suzuki gained after the company chairman said that double-digit sales growth is expected this current year. Tata Motors surged by over 1%. Macquarie raises price target for the stock to 700 rupees from 540 rupees and says it expects Tata's earnings to double over three years from FY2014 to FY2017. Shares of Sun Pharmaceutical Industries and Ranbaxy Laboratories slumped over 2% extending their previous day s fall on reports of drug regulator, US Food and Drug Administration (FDA) conducting a surprise inspection of the Sun Pharma s manufacturing plant at Halol in Gujarat. Shares of Snowman Logistics witnessed a huge jump of 68% to end at Rs 79 on debut. Snowman Logistics had priced its IPO at Rs 47. HIGHLIGHTS IN THE HEADLINES TODAY Nifty ends above 8,100 ahead of July IIP, Aug CPI data July IIP slumps to 0.5%; August CPI declines to 7.8% Coalgate: SC refuses to hear plea of power producers seeking re-hearing Lupin to sell US-based Salix's drugs in Canada Goldman Sachs cuts JP Associates target price by over 55% Maruti to roll out LCV project on a limited scale S&P BSE Midcap index crosses 10,000-mark after six years INSTITUTIONAL ACTIVITY ON NSE & BSE Category Buy Value (Rs bn) Sell Value (Rs bn) Net Value (Rs bn) Foreign Institutional Investors (FII) 37.46 35.63 1.83 Domestic Institutional Investors (DII) 16.52 18.60 (2.08)
INDEX MOVEMENTS Index Close Open High Low Close Gain / Loss Var. S&P BSE Sensex 26,996 27,048 27,097 26,966 27,061 65.17 0.24 CNX Nifty 8,086 8,087 8,114 8,072 8,106 19.80 0.24 CNX 500 6,555 6,560 6,579 6,548 6,573 17.95 0.27 CNX Nifty Junior 17,574 17,591 17,635 17,541 17,610 36.10 0.21 CNX Midcap 11,867 11,893 11,924 11,864 11,916 49.35 0.42 CNX IT 10,966 10,987 11,018 10,919 10,959 (7.45) (0.07) CNX 100 8,047 8,050 8,075 8,034 8,067 19.20 0.24 BANK Nifty 16,204 16,208 16,279 16,146 16,254 50.00 0.31 NIFTY GAINERS Company Curr. Gain CIPLA 610 575 6.11 LUPIN 1,360 1,319 3.12 BANKBARODA 948 924 2.61 BHARTIARTL 415 406 2.09 ASIANPAINT 670 657 1.99 NIFTY LOSERS Company Curr. Loss HINDALCO 169 173 (2.43) CAIRN 326 333 (2.16) SUNPHARMA 806 822 (2.02) ULTRACEMC 2,638 2,687 (1.80) TATAPOWER 89 91 (1.76) COMMODITIES & CURRENCIES Commodity (Futures) Day Curr. Day Brent Crude (USD / bbl) 98.08 98.02 Gold (USD / t. Oz) 1,239.00 1,235.30 Silver (USD / t. Oz) 18.60 18.57 Currency Curr. Rate USD / INR 60.75 EUR / INR 78.53 ASIAN MARKETS Index Closing Gain / Loss Var. Hang Seng 24,595 67.32 0.27 Nikkei-225 15,948 39.09 0.25 Shanghai Composite 2,332 20.27 0.88 Straits Times 3,345 1.73 0.05 Taiwan TAIEX 9,223 99.77 1.07 100 Yen / INR 56.54
GLOBAL MARKET OVERVIEW European stocks reversed initial gains today, 12 September 2014, before European Central Bank President Mario Draghi meets euro-area finance ministers and the US releases data on retail sales and consumer confidence. Key benchmark indices in Germany and France were off 0.05% to 0.2%. In UK, the FTSE 100 was up 0.24%. Most Asian stocks edged higher today, 12 September 2014, after the latest data showed credit growth of Chinese financial institutions surged last month. Key benchmark indices in Japan, Indonesia, South Korea and China were up 0.21% to 0.88%. Key benchmark indices in Singapore, Taiwan and Hong Kong were off 0.05% to 1.07%. GLOBAL NEWS Chinese banks stepped up lending in August after a big fall a month earlier, data from the central bank showed today, 12 September 2014. Chinese financial institutions issued 702.5 billion yuan ($114.6 billion) in new yuan loans in August, up sharply from 385.2 billion yuan in July. Total social financing--a broader measurement of credit in the economy--was 957.4 billion yuan in August, up from 273.1 billion yuan in July. Draghi will meet with euro-area finance ministers in Milan today, 12 September 2014, to discuss economic recovery and progress on the region's banking union. Draghi reportedly said yesterday, 11 September 2014, that investment in the euro area's economy will only return to pre-crisis levels if governments work with the ECB to achieve reforms and stimulate growth. The Bank of Korea held its policy interest rate at 2.25% today, 12 September 2014, as widely expected after it cut the benchmark by a quarter-point at its previous meeting. ECONOMIC AND POLITICAL NEWS Industrial activity, as measured by the index of industrial production (IIP), slipped to 0.5 percent in the month of July, data released by the government showed, compared to 3.9 percent in the previous month (which was revised higher from 3.4 percent). While consumer price index (CPI) for August came in at 7.8 percent against 7.96 percent in the previous month. A CNBC-TV18 poll of economists had estimated CPI to soften to 7.7 percent and IIP to fall to 1.7 percent. Surplus cash of state-owned enterprises including those ofmaharatnas and Navratnas lying idle in banks may be used to nurse ailing PSUs that can be revived back to health, the government said today. The government has constituted a committee headed by NTPC Chairman Arup Roy Choudhury to study the proposal and submit a report in two months time. The committee will examine the possibility of formation of a joint venture company funded by seed equity from Maharatna and other cash-rich central public sector enterprises (CPSEs) to administer and manage sick state-run enterprises that can be revived. Indirect tax mop up inched up by 4.6% in the April-August period of this fiscal, while customs duty and excise dutycollections rose marginally. Indirect tax collections comprising excise, customs and service tax stood at Rs 1.94 trillion in the first five months of 2014-15 fiscal as against Rs 1.86 trillion in the corresponding period a year ago, the finance ministry said in a statement. The growth at 4.6% is far less than 25% annual increase envisaged in the Budget for the full 2014-15 fiscal.
INDUSTRY NEWS Honda's uninterrupted march in India has earned it its second straight title over the rivals. The Japanese giant has dethroned Ertiga, one of Maruti Suzuki's best-sellers, to emerge as the leader in the compact multi-utility vehicle segment. The Honda Mobilio saw sales of 5,530 units last month compared to less than 5,491 Ertigas sold by Maruti Suzuki in the same month, according to data supplied by the Society of Indian Automobile Manufacturers, the country's apex automobile body. Forward Markets Commission (FMC), the commodity markets regulator has invited public comments by 27 September on paying back interest fee deposit to the member on surrendering their membership with the exchange. FMC has proposed that on receipt of application for surrender of membership from the members, commodity exchanges will have to advertise the same within one month from the date of receipt of such applications. SECTOR PERFORMANCE AND TRENDS Out of 3164 scrips traded over BSE, 1734 advanced & 1323 declined. Sector Var S&P BSE AUTO 0.64 S&P BSE BANKEX 0.29 S&P BSE CONSUMER DURABLES 0.72 S&P BSE CAPITAL GOODS (0.81) S&P BSE FMCG 0.54 S&P BSE HEALTHCARE 0.74 S&P BSE IT 0.04 S&P BSE METAL (0.21) S&P BSE OIL & GAS (0.14) S&P BSE POWER (1.29) Sector Trend * Auto BFSI Construction Consumer Goods Energy Industrial Manufacturing IT Metals Telecom * Shows trend for current & previous trading sessions S&P BSE REALTY (0.36) S&P BSE TECK 0.24 BONDS, T-BILLS & IPOs Manappuram Finance Limited, a leading gold financing company, announced its public issue of non-convertible debentures (NCDs) of face value of Rs 1,000 each, aggregating to Rs 1.50 bn (with an option to retain over-subscription up to Rs 1.50 bn). The debentures will have a tenure ranging from 400 days to 75 months and will have an effective yield up to 12.13% per annum.
COMMODITIES Gold and silver extended losses in the international market on Friday with gold trading near its nine-month low and silver at 14-month low. Gold hit an intra-day low of $1,232.33 an ounce (about Rs 74,000 for 32 gm), the lowest since January 24. Silver hit a low of $18.46 an ounce, the lowest since July 1, 2013. CORPORATE ANNOUNCEMENTS Mumbai-based Lupin Limited and US-based Salix Pharmaceuticals, Inc. (Salix) have entered a distribution agreement under which Salix has granted Lupin the exclusive right to market, distribute and sell certain Salix products in Canada. Country's largest car maker Maruti Suzuki India plans to roll out its light commercial vehicles (LCV) project on a limited scale. "We will begin the LCV project on a very limited scale and take the initiative forward by understanding the marketing and sales experience. We will slowly roll out it as we do not want to rush into it. The commercial vehicle sector is a new sector for us," Maruti Suzuki India (MSI) Chairman R C Bhargava said. The information in this publication was developed using data which Hinduja Bank () Ltd assumes to be accurate; nevertheless, Hinduja Bank () Ltd accepts no liability and offers no guarantee. The availability of such information does not constitute a recommendation to buy or sell any of the securities discussed therein. Statements made in this publication can be changed without prior notice. Moreover, the content is not intended for individuals (or entities) who (which), by reason of their nationality or domicile or for any other reason, are subject to foreign regulations prohibiting access to banking services or investment instruments via one or several distribution channels, or prohibiting or restricting the use of any information provided in this document.