Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Profit booking drags markets lower
Fri, 8 Jul 11:30 am

Indian stock market slipped deeper into the red on the back of profit booking in heavy weights over the last two hours of trade. Stocks from the metals and PSU space are trading weak while stocks from the realty and auto space are trading firm.

The BSE-Sensex is trading down by 77 points while NSE-Nifty is trading 26 points below the dotted line. BSE-Midcap and BSE-Small cap indices are both trading flat. The rupee is trading at 44.35 to the US dollar.

Steel stocks are trading weak led by Sesa Goa and Adhunik Metaliks. As per a leading financial daily, Group of Ministers headed by finance minister Pranab Mukherjee has approved the draft Mines and Minerals (Development and Regulation) Bill. As per the new bill, coal companies will have to share 26% of their profit with the local population. For iron ore, bauxite and limestone, profit will be shared to the level of royalty paid in the previous year. The bill after receiving approval from the cabinet will be placed in the Parliament. As per industry experts, this bill will be a negative for the mining companies but steel companies will be impacted slightly lesser. Sesa Goa was trading down by 4.3%, while Hindustan Zinc and Sterlite were down by 3.4% and 4.2% respectively.

Cement stocks are trading mixed with Chettinad Cement and Birla Corp trading firm, while JK Lakshmi Cement and Samruddhi Cement are trading weak. As per a leading financial daily, cement companies are delaying their expansion plans due to slowdown in demand. Presently, cement projects worth about Rs 130 bn have been deferred. Moreover, no new clinker capacity has been ordered since April.

Cement demand had been expected to improve from 2012-13 onwards. However, things are not looking favorable now. While the cement industry was expected to grow at 10% annually, for the first two months of this financial year the industry witnessed negative growth compared to 5% growth seen for the same period last year. It may be noted that the present capacity utilization in the cement industry is around 70%. With the existing capacity running below full capacity, cement companies see no reason to invest in capex in the current environment.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Profit booking drags markets lower". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.