Business – Vitals

Mixed global cues led the JULY F&O expiry day end on a flat note. BANKING, REALITY and FMCG witnessed good buying while IT, CAPITAL GOODS and METALS saw good gains. SENSEX closed at 17992, up 34 points and Nifty at 5408, up 11 points from the previous close. CNX MIDCAP index was up 0.2% and BSE SMALLCAP index was down 0.1%. The market breadth was negative with advances at 588 against declines of 681 on the NSE. Top gainers included HINDALCO, HDFC, ICICIBANK, TATAMOTORS, HUL, IDFC and CAIRN. Top losers are listed as RCOM, BHARTIARTL, RELINFRA, JINDALSTEL, CIPLA, SUZLON, SUNPHARMA, SAIL and RPOWER.

In the next session NIFTY may trade in the range 5350-5420, breaching of level either side may decide the trend. Traders are suggested to avoid long positions below 5350. BANKING STOCKS may attract buying while METALS and HEALTH CARE HEAVYWEIGHTS may face selling.

Investors who have a horizon of 6-12 months can buy the following companies. The companies have potential to give higher returns than index over a long term.

Ashok Leyland, the flagship company of the London-based Hinduja Group has announced today that it had reached agreement with Optare plc, a leading bus manufacturer in the UK to subscribe for a 26% stake as a part of long-term strategic cooperation. The investment is estimated at about US$ 7.5 million.

Glenmark Generics Inc, the United States subsidiary of Glenmark Generics has announced that the United States Food and Drug Administration (USFDA) has granted tentative approval for Riluzole 50 mg tablets, the generic version of Rilutek tablets by Sanofi Aventis US LLC.

Sun Pharmaceutical Industries has announced that the U. S. Court of Appeals for the Federal Circuit affirmed the judgment of the U. S. District Court for the Eastern District of Michigan against Eli Lily and Co. finding certain claims of U. S. Patent No. 5,464,826 (826 patent) invalid.

Disclaimer: The above mentioned ideologies are based on the research done at Fairwealth research department. Fairwealth securities (P) Ltd will not be responsible for any kind of losses incurred by any part either directly or indirectly based on our research results, though we have presented to the best of our knowledge.

Bharti Airtel, the country’s largest mobile operator by subscriber base, is all set to launch the iPhone 4 in September-October this year. The announcement was made today by Bharti’s CEO Sanjay Kapur.
Currently, the company offers the 3GS handset that is priced at Rs 35,500 for the 16 GB model and Rs 41,500 for the 32GB model.

Earlier, Vodafone Essar had said that it planned to bring the world’s thinnest smart phone to India without giving a specific time frame.

Bharti and Vodafone have both won 3G license which will help them boost sales of the iPhone whenever it is launched.

US-based Apple Inc, the inventor of iPods, iPhones and iPads officially announced the launch of the iPhone 4 with a sharper screen and video-chat features in an attempt to ward-off competition from devices running Google’s Android software.

Apple’s iPhone 4 has the highest resolution display ever built into a phone.

The iPhone 4 has a new camera system, capable of video-conferencing and recording high-definition video.

The iPhone has emerged as Apple’s top product, overtaking its Macintosh computer and iPod.

In June, Apple Inc. and its phone company partners took orders for more than 600,000 iPhone 4s in one day, the highest number it’s ever seen.

You may have to wait for at least one year before you get keyboards for your computers with the new Rupee symbol. That’s what the Government of India says. The Union Cabinet cleared the symbol on July 15.

But for people who can’t wait to start using the symbol, here’s some good news. A newly created font can help you type the character of the new rupee symbol immediately.

Foradian Technologies Pvt Ltd, a Mangalore-based firm, has created a new font called the Rupee_Foradian, which can be downloaded from the company’s site – Download the symbol here .

The firm has also put in a slide show on the site to help users download the symbol, and the move has generated amazing results with the tiral version being loaded about 1,100 times with the first hour of its launch. The company made available the full version, free, as soon as the hits crossed 5,000.

It has been reported that the number of U. S. bank failures increased to 96 this year when federal regulators shut down six banks in Florida, Michigan and South Carolina.

The Wall Street Journal reported on Saturday that the financial crisis that led to 140 bank failures last year has now begun to hurt smaller banks and regulators have been closing banks this year at nearly double the pace of 2009.

The six banks closed Friday will cost the Federal Deposit Insurance Corp.’s deposit insurance fund about $334.8 million.

Bank failures included First National Bank of the South, based in Spartanburg, S. C., which had reported $682 million in total assets and $610.1 million in total deposits as of the end of March.

The FDIC has said that a subsidiary of North American Financial Holdings Inc., NAFH National Bank, acquired all of the deposits and nearly all of the failed bank’s assets.

It has further been reported that NAFH National Bank also stepped in to take over two Florida-based banks on Friday, purchasing the deposits and nearly all the assets of Miami-based Metro Bank of Dade County and Turnberry Bank of Aventura, Fla. Metro Bank had reported assets of $442.3 million and deposits of $391.3 million as of the end of March, while Turnberry Bank had assets of $263.9 million and deposits of $196.9 million.

Old Cypress Community Bank was the third Florida-based bank, which was closed on Friday, with regulators blaming under-performing assets and seven quarters worth of operating losses. The FDIC said CenterState Bank of Florida acquired that bank’s $162.4 million in total deposits and nearly all of its $168.7 million in assets.

The Sensex dropped further due to profit booking witnessed in index heavyweights.

On sectoral front, metal, IT and capital goods scrips remained weak, whereas consumer durable and FMCG were trading in the green zone.

At 10.51 a. m., the 30-share index Sensex lost 104.22 points to trade at 17,772.33. In the meantime, the Nifty was trading down by 26.40 points at 5,326.90.

Today, the Sensex belled the day after losing 8.43 points at 17,868.12, whereas Nifty begun after falling 86.80 points at 5,266.50.

The overall breadth of the stock market was pessimistic with 1,079 advancements as compared to 1,328 declinations.

The major gainers comprised HUL (1.04%), I T C (0.90%), RCom (0.62%), Tata Power (0.12%), HDFC (0.03%) and Hero Honda (0.01%).

On the other hand, the top losers were Sterlite Ind (2.78%), Hindalco Ind (2.12%), Jindal Steel (1.81%), Tata Motors (1.77%), JP Asso (1.65%), and L&T (1.60%).

The BSE Midcap index gained 0.08% and the BSE smallcap index surged 0.21%.

Among sectoral indices, the Metal index declined 277.77 points, the Capital Goods index shed 151.49 points, the IT index dropped 48.02 points and the Consumer Durables index remained up by 34.26 points.

On June 21, 2010, Indian share prices observed significant rise after China announced to do away with Yuan’s fixed rate against dollar. Share prices at BSE rose to their highest in more than two months as investors were encouraged to take more risks.

Share prices of Sterlite Industries jumped 7.3% followed by Tata Steels at 4.6 percent and Hindalco at 4.3 percent.

Shares of Larsen & Toubro Ltd., the largest private-sector infrastructure company in India, rose to the highest in four months.

On June 19, 2010, The People’s Bank of China announced that it was ready to make Yuan more flexible as the global economy is recovering form recession and the country is observing a balanced trade. The announcement resulted into the rise in prices of copper and other base metals on June 21, 2010.

At 10.57 a.m ( 0527 GMT) Sensex at the BSE rose to 17,893.71 points, a 1.83 percent rise since the middle of April when it observed a high of 17,894.04 points. All the components of BSE Index observed an upward movement.

The BSE Index advanced 5.6 percent in June after declining 3.5 percent in May.

Ambareesh Baliga, Vice-President, Karvy Stock Broking, said, “China’s yuan move is helping risk-taking ability. Also,commodities are doing very well, helping the market further…..”

Insurance companies would also get a big encouragement to invest as the government will allow life insurers to offer “unit-linked plans.”

The 30-share index Sensex today turned volatile in morning trade and was trading 56 points up than its previous closure at 16,617.1.

The Sensex of the Bombay Stock Exchange (BSE), which opened at 16,621.12, was trading 56.65 points or 0.34 percent up at 16,673.75.

In the meantime, the broader 50-share S&P CNX Nifty was trading at 5,005.9, up 0.38%.

The BSE midcap index was trading 0.72% up and the BSE smallcap index remained up by 0.6%.

The Sensex on Tuesday ended in the red for second straight day after losing 163.97 points at 16,617.10 on renewed offloading by local operators together with pessimistic worldwide signals.

Nifty index closed below 5k mark at 4,987.10 with a loss of 46.90 pts.

Technology giant Apple has introduced a latest model of the iPhone.

The new model is thinner in size and has new features such as a front-facing camera.

Steve Jobs, Apple’s chief executive officer (CEO), made announcement about the details of the new “iPhone 4″ during the company’s annual Worldwide Developers Conference held in San Francisco.

“We’re going to take the biggest leap since the original iPhone,” Jobs said.

Less than 10 mm thick, the new “iPhone 4″ is around 24%thinner as compared to the previous iPhone 3GS, Jobs said, adding that the new model has a longer battery life that will allow 40 percent more talk time.

From June 24, the iPhone 4 will be available in five countries including the US, France, Germany, Britain and Japan.

It will be available in 18 more countries in July.

The the 16-gigabyte model will cost $199 in the US and the 32-gigabyte model will be priced around $299.

Global Investors Meet started on Thursday in Bangalore, Karnataka with over Rs 4,00,000 crore of anticipated investment in the state.

The two-day event of Advantage Karnataka started at the Palace Grounds in Bangalore in which over 2000 business persons are reported to take part and about 400 MoUs would be signed with respect to the investments. Earlier one such event was held in the year 2000.

The key industries where the investments will be made are biotechnology, information technology, aerospace, tourism, power, health, textile, automobile and education.

In the previous such meet, which was held ten years ago, Karnataka has attracted an investment of Rs 13,000 crore, reports said.

Major business personalities including Vijay Mallya, Lakshmi N Mittal, Kumar Mangalam Birla, Lakshmi N Mittal would be attending the meet.

The Karnataka Chief Minister Yeddyurappa has invited the investors to invest in Karnataka and assured of providing all the support to the investors in the meet. He said that the meet should result in increasing the investments to two folds and provide more employment opportunities.

About the metro rail project, the CM said that the project would be commissioned by the year end. The state also has plans to invest about Rs 20,000 crore in the tourism sector.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which climbed up shortly after opening bell on steady worldwide signals, continued to hold gains in noon, trading 1.63% up as against its last closure.

The Sensex, which belled the day at 16,786.28, stood at 17,014.19, up 272.35 points, while the broad-based Nifty was ruling 1.77% up at 5,108.65.

Broader markets indices were also trading in the positive, with the BSE midcap index trading 0.96% higher and the BSE smallcap index 1.2% up.

Among other Asian markets, the Japanese Nikkei closed 3.24% up at 9,914.19.

Hong Kong’s Hang Seng remained up, taking strength from the rally in US markets yesterday. It stood at 19,821.76 after surging 1.8%.

The South Korean Kospi was trading 1.93% up at 1,661.84.

But, the Shanghai composite index declined 0.73% at 2,552.66.

European markets opened on a strong note tracking good buying action in battered oil stocks and news of good auto and housing facts from the US.

The FTSE 100 remained up by 1.54% to trade at 5,230.52, while its German peer DAX was ruling 1.93% at 6,096.58.

The French CAC 40 too was up 2.14% at 3,576.47.