Fqbrunch-280612.p65

Domestic Indices
From the Trading desk
Asian shares rose on Thursday on encouraging US economic data, but share prices could falter ahead of a European summit where Germany, France and Italy deeply divided on how to tackle the protracted euro zone debt crisis and stop it spreading further. Wall Street stocks logged their largest gain in week on Wednesday and oil prices rose after data showed demand for long-lasting U.S. manufactured goods rebounded more than expected in May'12.
Advances / Declines
Crude oil futures extended gains from Wednesday on tighter North Sea supplies and EU ban on import of Iranian crude from July'12. In lieu of the above events Indian market could remain edgy and could turn positive if any liquidity infusing measures are undertaken at the summit but the rising crudeprices give some negative vibes to the range bound market.
Top 5 BSE 200 - GAINERS
Ranbaxy may lose Nexium 180days exclusivity on Novartis petition
Price (Rs)
(-Ve for Ranbaxy)
Sandoz, the generic pharmaceuticals division of Novartis has filed a citizen petition requesting the USFDA to revoke the 180days exclusivity granted to Ranbaxy for generic Nexium. Sandoz has filled the petition on the basis arguing that Ranbaxy received tentative approval from on Feb5, 2008 which was a day after the end of the statutory 30month counted from the day offiling the generic plea. We believe it's a negative news for Ranbaxy(-Ve for Top 5 Nifty - GAINERS
Price (Rs)
Amara Raja close to tying up OE deals for 2-wheeler batteries. (+Ve
for Amararaja)
Amara Raja Batteries Ltd is in advanced stage of negotiations with a few 2- wheeler manufacturers for supplies of batteries. When this happens it will be a first for the company. The company is confident of starting supplies to 2- wheeler manufacturers by July-August.
Top 5 BSE 200 - LOSERS
Company
Price (Rs)
Corporate/Industry Snapshot's
Strides Arcolab has redeemed its entire outstanding $ 80mn FCCBs on the Bosch to shut plants at Jaipur, Bangalore temporarily.
Slump-hit Tata Motors shuts plant for 3 days.
Top 5 Nifty - LOSERS
Tata Sons hikes stake in IHCL by 4.78% for Rs 497.47 cr Price (Rs)
JSW targets 20-22% growth in crude steel output in 2012-13 Videocon industries to finalise a deal to sell 40% in its consumer electronic goods retail chain, Next, by Diwali.
Panna-Mukta and Tapti field output hit 500 mn barrels mark MARG Karaikal Port Attracts Equity Investment of Rs. 130 Crores.
Currency Rate
Pr. Close
Economic Events
In step towards decontrol, levy sugar system may be scrapped FY13 current account deficit gap seen at 3.5% on account of softening of Refiners' crude oil import increased 5.8% Y-o-Y in the month of May to 14.586 Global Indices
Revise diesel price by no more than Rs.1 at a time, says panel FINQUEST research also available on BLOOMBERG FSPL <GO> and REUTERS.
Market View
ADR Price Movement
Volume Pr. Day
US markets end higher boosted by better than expected data
The US markets ended higher amidst thin trade boosted by better than expected data. But investors remained cautious ahead of the two-day EU Dow Jones Industrial Average added 0.74% or 92.34 points at
12627.01. Nasdaq Composite rose 0.74% or 21.26 points at
2875.32. Standard & Poor's 500 gained 0.9% or 11.86 points at
1331.85.
Asian Indices
Encouraging news on economic front, durable goods orders jumped 1.1% in May following a revised 0.2% decrease in April. This was much higher than analyst expectations. Pending home sales climbed 5.9% to 101.1, hitting a two-year high in May. Weekly mortgage applications dropped 7.1% last week. In key data from US, initial jobless claims are seen Commodity Prices
coming in slightly lower at 385000 compared to 387000 last week. Watch out for the final reading of the first quarter GDP data. The forecast is for a 1.9% reading. In the currency space, the euro remained sluggish ahead of the impending summit of European leaders. The dollar index touched a two-week high at 82.69 but eventually stabilised to 82.40 mark in Asia trade. In the commodity space, Brent crude rose to USD 93 a barrel on Net Inflow (Rs. cr.)
as tighter North Sea supplies and strong US economic data offset concerns that a European summit would do little to solve the region's debt crisis.
In the precious metal space, gold futures gained after trading flat for Volatility Index
Close Pr. Close
most of the day as investors held their bets in anticipation of news from the impending European Union summit.
Asia trading mixed; Hang Seng up, Shanghai Composite down
Asian markets were trading mixed. China's Shanghai Composite was down 0.14% or 3.06 points at 2,213.87. Hong Kong's Hang Seng rose 0.21% or 41.09 points at 19,218.04. Japan's Nikkei gained 0.93% or 81.23 points at 8,811.72. Singapore's Straits Times was flat at 2,843.27. South Korea's Seoul Composite was down 0.27% or 4.82 points at 1,812.83.
Taiwan's Taiwan Weighted was up 0.18% or 12.60 points at 7,195.61.
FII & DII Activity
June 28, 2012
Industry
Investment policy for urea gets nod
The ministry of chemicals and fertilizers has approved the new investment policy for urea and sent it for
inter-ministerial consultations. The policy will be ready for Cabinet consideration in the next few weeks.
Under the proposed policy, imported liquified natural gas(LNG) used for urea production would be given pass
through status so that fertilizer producers get enough subsidy to use the expensive fuel and still make a 12%
return on investment. The new urea investment policy also talks about providing incentives on natural gas
price to fertilizer companies for reviving, expanding and setting up of new plants to boost domestic production.
It is good that some positive is happening in the ministry but it is to be seen how the government plans to
implement the same. The government is trying to generate enough investments for new plants, but it needs
to be seen what is happening to the existing plants, managing director of Iffco said.
Novartis battles Ranbaxy over generic Nexium
Sandoz, the generic pharmaceuticals division of Novartis AG as filed a citizen petition requesting the USFDA
to revoke the sales exclusivity given to Ranbaxy for a copy of AstraZeneca Nexium, a blockbuster treatment
for heartburn. Ranbaxy was the first company to file a generic application for Nexium, making it eligible to
get 180 days of sales exclusivity under U.S. federal law. It received tentative approval from the U.S. Food
and Drug Administration for generic Nexium on Feb. 5, 2008, which Sandoz said was a day after the end of
the statutory 30-month period counted from the day of filing the generic plea. Sandoz in the citizen petition
dated June 19, said Ranbaxy should forfeit its sales exclusivity as it failed to obtain the approval within the
stipulated time frame. Ranbaxy had received the FDA's approval for 20 milligram and 40 mg base strengths
of esomeprazole magnesium, the generic version of Nexium. Sandoz's move could jeopardize Ranbaxy's
chances of starting exclusive sales of its copy of Nexium from May 27, 2014 on patent expiry in the US, thus
hurting its chances of making significant profits in the six months before other generic competitors like
Sandoz enter the market and push down prices. Nexium is one of the world's top-selling drugs and has
generated billions of dollars in revenue for AstraZeneca. Several generic drug makers have launched cheap
copies of it in some European countries, but in the US, cheap copies of the pill aren't expected until 2014,
following settlement deals struck between AstraZeneca and generic drug companies. It isn't known when the
FDA will rule on the petition.
Thought for the Day
Lying to ourselves is more deeply ingrained than lying to others.
Source: Bloomberg, Economic Times, Business-Standard, Financial Express & Business Line June 28, 2012
602 Boston House, Next to Cinemax, Suren Road, Andheri (East) Mumbai 400 093 Tel.: 91-22-4000 2600 z Fax: 91-22-4000 2605 z Email: info@finquestonline.com DISCLAIMER: This document is not for public distribution and has been furnished to you solely for your information and must not be reproduced or redistributed to any other person. Persons into whose
possession this document may come are required to observe these restrictions.
Opinion expressed is our current opinion as of the date appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory,
compliance, or other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without
notice. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true and are for general guidance only. While every effort
is made to ensure the accuracy and completeness of information contained, the company takes no guarantee and assumes no liability for any errors or omissions of the information. No one can use the
information as the basis for any claim, demand or cause of action.
Recipients of this material should rely on their own investigations and take their own professional advice. Each recipient of this document should make such investigations as it deems necessary to arrive at
an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits
and risks of such an investment. Price and value of the investments referred to in this material may go up or down. Past performance is not a guide for future performance. Certain transactions - futures, options
and other derivatives as well as non-investment grade securities - involve substantial risks and are not suitable for all investors. Reports based on technical analysis centers on studying charts of a stock’s price
movement and trading volume, as opposed to focusing on a company’s fundamentals and as such, may not match with a report on a company’s fundamentals.
We do not undertake to advise you as to any change of our views expressed in this document. While we would endeavor to update the information herein on a reasonable basis, FINQUEST, its subsidiaries
and associated companies, their directors and employees are under no obligation to update or keep the information current. Also there may be regulatory, compliance, or other reasons that may prevent
FINQUEST and affiliates from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.
FINQUEST and affiliates, including the analyst who has issued this report, may, on the date of this report, and from time to time, have long or short positions in, and buy or sell the securities of the companies
mentioned herein or engage in any other transaction involving such securities and earn brokerage or compensation or act as advisor or have other potential conflict of interest with respect to company/ies
mentioned herein or inconsistent with any recommendation and related information and opinions.
FINQUEST and affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to
in this report, as on the date of this report or in the past.
June 28, 2012

Source: http://finquestgroup.com/wp-content/uploads/2012/09/FQbrunch-280612.pdf