It is not how much we have, but how much we enjoy, that makes happiness.
Suddenly the worst seems to be over for the day. We can't take a two day call these days. The storm (kicked up by the slump in US housing market) seems to have subsided for now. Global markets have recovered smartly in recent times thanks largely to the Fed cutting its discount rates and expectations of a further reduction in September. The resumption of the yen carry trade is another good sign for the bulls. Remember, it doesn't take too long for sentiment to change in the forex markets. Unless another bombshell springs up from some corner of the world, we will have stability across global markets with a positive bias. Keep a close watch on the US economy's health for any further clue on global market trends. Another rate cut from the Fed will be a bonus.
Spurred by a strong closing on Wall Street and in other main markets Asian markets have opened on a firm note. Expect a gap-up opening on local bourses as well.
But, the uncertainty over the fate of the current Government could linger on for a while and could potentially tie the bulls down despite the improvement in the global markets. This again will come in only when statements are made or rumors are spread. Be prepared for knee jerk reactions and bounce backs. The F&O expiry on Thursday may make markets volatile. And, don't forget the FIIs are still selling. For the key indices to hit previous all-time highs, this category of investors have to resume their shopping spree.
Shares of Take Solutions will get listed today. Punjab Chemicals could be in action today as it is likely to announce an acquisition of Dutch company Pegevo Beheer BV. Another stock that could gain is Moser Baer amid reports that it is planning to list its subsidiary Moser Baer Photovoltaic in the US.
Airlines such as Deccan Aviation and SpiceJet are expected to be in the spotlight as a financial daily reports that the Government might relax the current regulations pertaining to launching overseas operations. NIIT Technologies is also likely to attract attention amid reports of stake sale.
SBI is expected to hog the limelight as it has decided to merge State Bank of Saurashtra with itself. Deep Industries is another counter where some buying is expected. Reliance Industries could gain initially on reports that it is entering the construction business. Read - RIL ventures into construction business...
Northgate Technologies has set up a subsidiary called Social Media India Ltd., to tap the online advertising and other internet transaction services industry.
Kothari Products has approved the proposed demerger of Pan Masala Division, Beverages Division and Trading Division into Pan Parag India.
Prakash Industries has approved the issue of 55,55,556 warrants convertible into equity shares to Barclays Capital Mauritius. Price of Rs80 per warrant has been calculated as per the SEBI Guidelines.
ANG Auto, Kalpataru Power, Lokesh Machines and Micro Technologies will announce their results today.
Stronger-than-expected readings on the economy, including July new home sales, sent US stocks higher on Friday, yet gains were limited by higher oil prices and ongoing worries about the tightening credit markets.
For the week, the Standard & Poor's 500 Index advanced 2.3% to 1,479.37, the steepest gain since March. The Dow Jones Industrial Average rose 2.3% to 13,378.87. The Nasdaq Composite Index climbed 2.9% to 2,576.69.
US stocks started the day with small losses, before turning higher following the release of the housing report. July new home sales rose 2.8% to an 870,000 annual sales pace, beating forecasts for a drop to 825,000. In addition, the reading on June new home sales was revised upward.
Another report showed that July durable goods orders jumped 5.9%, easily topping economists' forecasts for a rise of 1.4%.
Treasury prices rose, lowering the yield on the 10-year note to 4.62% from about 4.64% late on Thursday. In currency trading, the dollar slipped versus the euro and the yen.
US light crude oil for October delivery rose $1.02 to $70.85 a barrel on the New York Mercantile Exchange. COMEX gold rose $3.60 to $672 an ounce.
European shares closed out a successful week on Friday with their sixth straight advance, with metals and oils producers getting a bounce from unexpectedly strong US economic data.
The pan-European Dow Jones Stoxx 600 index ended 0.3% higher at 370.52. The UK's FTSE 100 rose 0.4% to 6,220.10 and the French CAC 40 gained 0.8% at 5,569.38. The German DAX 30 declined 0.1% to 7,507.27.
In the emerging markets, the Bovespa in Brazil rose 2.2% to 52,998 while the RTS index in Russia was flat at 1864 and the ISE National 30 index in Turkey fell 1.4% to 58,499.
Most Asian markets were trading higher this morning. The Nikkei in Tokyo was up 172 points to 16,421 while the Hang Seng in Hong Kong gained 460 points to 23,382. The Kospi in Seoul was up 27 points at 1818 while the Straits Times in Singapore advanced 44 points to 3413.
The Morgan Stanley Capital International Asia-Pacific Index added 1.1% to 149.86 as of 10:45 a.m. in Tokyo, set for its highest close since Aug. 9. The index jumped 8.1% in the five days ended Aug. 24, the best performance since March 2002 and its first advance in five weeks.
Benchmarks advanced in other markets open for trading.
After witnessing high volatile session in the previous day bulls managed to stage a strong come back ignoring political uncertainties and weak global cues. BSE Metal, Auto and Capital Good stocks led from the front and even the Mid-Cap and the Small Cap indices aided strong support. RIL, BHEL, SBI and L&T were the leading movers among the 30-scripas of Sensex. Finally, the BSE 30-share Sensex closed at 14,424 surging 260 points. NSE Nifty gained 75 points to close at 4190.
Tata power slipped by 0.3% to Rs679 after S&P lowered rating on the company. The scrip touched an intra-day high of Rs686 and a low of Rs672 and recorded volumes of over 3,00,000 shares on NSE.
Reliance Industries gained by 1.8% to Rs1776 after India's biggest company by market value proposed building an oil refinery and other petroleum facilities in Egypt valued at $10bn. The scrip touched an intra-day high of Rs1782 and a low of Rs1742 and recorded volumes of over 16,00,000 shares on NSE.
Tata Steel advanced by 4% to Rs582 following reports that world's sixth- largest steelmaker and Essar Steel Holdings Ltd. are among seven companies shortlisted by Egypt's government to build a $3bn steel and billet plant. The scrip touched an intra-day high of Rs587 and a low of Rs560 and recorded volumes of over 17,00,000 shares on NSE.
Gujarat State Petronet surged by over 3% to Rs55 after the company announced that they would sell 22mn shares to IFC at Rs57.29. The scrip touched an intra-day high of Rs57 and a low of Rs53 and recorded volumes of over 4,00,000 shares on NSE.
MTNL jumped by over 3% to Rs134 following news reports that the company has won tax disputes; it may get Rs11bn Tax refund. The scrip touched an intra-day high of Rs137 and a low of Rs130 and recorded volumes of over 17,00,000 shares on NSE.
ICSA India rallied 9% to Rs1565 after the company announced that they would consider stock split on August 30 and also yesterday secured order worth Rs186mn. The scrip touched an intra-day high of Rs1581 and a low of Rs1440 and recorded volumes of over 48,000 shares on NSE.
Auto stocks were in top gear. Tata Motors surged by over 5.8%to Rs656, Maruti surged by 2% to Rs790, M&M was up by 3% to Rs640 and TVS motors added 1.7% to Rs57.
IT stocks gained momentum towards the end. Satyam Computer advanced by 3.3% to Rs436, Rolta was up by 2.5% to Rs434 and Moser Baer added 2.4% to Rs271 and Infosys was up by 0.8% to Rs1825
Fertilizer stocks bounced back after being on the receiving end in the previous trading session. Chambal Fertilizer surged by over 4.5% to Rs46, Deepak Fertilizer gained by 7% to Rs101 and GNFC added 1%to Rs121.
Metal stocks shinned brightly led by gains in the heavyweight JSW Steel surged by 10% to Rs571, Hindalco was up by 2% to Rs142 and Sterlite Industries added 2% to Rs578.
Select Realty stocks were on the receiving end. Sobha slipped by 0.6% to Rs741. However, Unitech gained 0.7% to Rs456, DLF gained 1% to Rs565 and Akruti rose 6.9%to Rs507.
Auto stocks gained momentum in this week led by Tata Motors, the scrip was up by 2.5% to Rs656 and Maruti gained by 1.5% to Rs790, TVS Motors rose 3.6% to Rs57 and Ashok Leyland added 0.5% to Rs35.
Cement stocks were in limelight during the week. Ambuja Cement rose over 7% to Rs135, ACC jumped by over 6% to Rs1010, Prism Cement added 1.3% to Rs54 and Grasim was up 1% to Rs2771.
Fund Activity:
FIIs were net sellers of Rs2.75bn (provisional) in the cash segment on Friday and the local institutions pumped in Rs4bn. In the F&O segment, FIIs were net sellers at Rs5.2bn. On Thursday, foreign funds pumped in Rs3.3bn in the cash segment. Mutual Funds were net buyers at Rs3.09bn on the same day.
Major Bulk Deals:
Reliance Capital has bought Asian Granito; Reliance Long Term MF has picked up Essel Propac; UBS Securities has purchased IOL Broadband.
Insider Trades:
Kesoram Industries Ltd: SBI Mutual Fund under its various schemes has purchased from open market 17957 equity shares of the company on 21st August, 2007.
Euro Ceramics Limited: Bear, Stearns & Co. A/c BSMA Limited has purchased from open market 300000 equity shares of the company on 22nd August, 2007.
Lower Circuit:
IOL Broadband and Era Construction.
Upper Circuit:
Etc Networks, Ganesh Forgings, Kothari Products, Balasore Alloys, Vyapar Industries and Flawless Diamond
Delivery Delight (Rising Price & Rising Delivery):
BPCL, Bharti Airtel, Gokaldas Exports, Hindustan Construction, Maruti and Sintex Industries.
Abnormal Delivery:
Bharati Shipyard, Pantaloon, Grasim, Rajesh Exports, BEL and VSNL.
Major News & Announcements:
Inflation for the week ended Aug. 11 was 4.1% vs expectation of 4.05%
Sical Logistics signs agreement with Mihan Road Terminal
ICSA to consider stock split on August 30
MTNL wins tax disputes - Reports
S&P lowers rating on Tata power
L&T plans to raise $700mn selling securities
Gujarat State Petronet to sell 22mn shares to IFC at Rs57.29