December 29, 2012

Weekly Pulse - Dec 29, 2012

Weekly Update - Dec 29, 2012

Shares of oil companies shoot, amid governments diesel price hike.
Shares of Oil & Gas companies were the best performers on the bourses Friday, after the oil ministry announcing proposed minimising fuel subsidies over the next two years by increasing diesel and kerosene prices. The oil ministry proposed raising prices of diesel by Rs 10 a litre over the next 10 months and of kerosene by Rs 10 a litre over the next two years.

BSE’s Oil & Gas index rose 2.4 per cent, while the Sensex gained 0.6 per cent. Among oil marketing companies, HPCL rose 4.2 per cent to Rs 292.90, BPCL gained 2.2 per cent to Rs 353 and IOC rose three per cent to Rs 268.80.

Investors disappointed by Bharti Infratel debut.
Bharti Infratel disappointed investors on its trading debut, with the stock ending 13% below the issue price in its initial public offering (IPO). Analysts said uncertain outlook for the country’s telecom tower business and premium pricing in the IPO, which helped the company raise Rs 4,170 crore, were the main reasons for the weak opening.

Bharti Infratel shares closed at Rs 191.20 on the Bombay Stock Exchange (BSE) and Rs 191 on the National Stock Exchange (NSE). It had offered 160.59 million shares in a price band of Rs 220-Rs 240 and the IPO was priced at the lower end of the band. Retail investors had bid for only 19 per cent of the shares set aside for them despite the offer for getting the units at 10 per cent discount to the issue price. Retail investors got the shares at Rs 210 a piece in the IPO, the biggest after state-run Coal India’s Rs 15,480-crore ($3.5 billion) issue in 2010.

Bharti Infratel has about 34,000 towers and owns 42 per cent of Indus Towers, the world’s largest tower company. Bharti Infratel has a 38 per cent share of India’s telecommunications tower market.

Markets post gains this week.
Markets posted its weekly gain after continues three weeks of down trend, led by Banks, Real-Estate and Oil & Gas sector.

Sensex was up by 121.04 points (weekly) at 19,444.84, while Nifty was up by 38.25 points (weekly) at 5,908.35.

Major stock gainers were, Reliance Industries Limited up by 3%, Hindalco Industries up by 1%, Sterlite Industries up by 2.3%, HDFC up by 0.6%, Infosys and TCS up by 1%, ONGC up by 2.5%, Hero MotoCorp up by 1.3% and MAruti Suzuki up by 1.4%.

Major stock losers were, Sun Pharma down by 1%, Mahindra & Mahindra down by 0.7%, Bharti Airtel down by 0.1%, State Bank of India down by 0.5% and Jindal Steel down by 0.3%.

FII were strong buyers with inflows of over $4 billion this month, totaling for around $24 billion this year.

Investors are likely to focus on India's current account data for July-September due on Monday coupled with any hikein petrol prices by the government to reduce the mounting subsidy burden of oil marketing companies.

Globally, the key focus area will be the progress to avoid 'fiscal cliff' in US that is nearing its deadline of December 31. The Purchasing Manufacturing Index data released by China, US, Europe along with FOMC minutes of the meeting will also gain limelight.

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