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Friday, August 10, 2007
Sensex sheds 232 points on weak global markets
The market which plunged sharply in opening trade, tracking weak global cues, kept on recovering as the day progressed on value buying coupled with short covering. It settled near day’s high. Trading was marked by a high degree of volatility. All the indices on BSE except the BSE IT index settled lower. All the European indices were trading lower.
The wholesale-price-based inflation rose 4.45% in the week ended 28 July 2007 compared to 4.36% rise in the previous week.
India's industrial production in June 2007 grew at the slowest pace in eight months as interest rates at a five-year high curbed consumer spending. Production at factories, utilities and mines rose 9.8% from a year earlier, following a revised 10.9% gain in May 2007.
The BSE 30-share Sensex lost 231.90 points or 1.54% at 14,868.25. It opened with a sharp 466-point downward gap at 14,631.15 and slumped further to touch a low of 14,570.89. From here, it started recovering to hit a high of 14,901.31 at 15:20 IST.
The BSE Sensex oscillated in a range of 330.42 points today as compared to a gyration of 480.10 points on Thursday, 9 August 2007.
The S&P CNX Nifty declined 69.85 points or 1.59% at 4,333.35. It also recovered sharply from a low of 4239.20. The Nifty August 2007 futures settled at 4303, a discount of 30.35 points as compared to spot closing.
Sensex had slumped 207.83 points to 15100.15, on late sell-off yesterday, 9 August 2007 after European indices opened weak after BNP Paribas suspended redemptions from three funds citing problems in US subprime mortgages.
The market breadth also recovered sharply, but still was negative on BSE with 1,574 shares declining as compared to 1127 that advanced, while 58 remained unchanged.
The BSE Mid-Cap index was down 0.79% to 6,507.62 while the BSE Small-Cap index slipped 0.75% to 7,904.13
Among the sectoral indices, the BSE Capital Goods Index (down 0.90% at 12,768.35), BSE Health Care Index (down 1.37% at 3,601.09), BSE Auto Index (down 0.69% to 4,736.40) and BSE FMCG Index (down 0.88% to 1,903.05), ended down.
The total turnover on BSE amounted to Rs 5,196 crore as against to Rs 5,495.26 crore on Thursday, 9 August 2007. The NSE F&O turnover was Rs 48,868.82 crore as compared to Rs 55,930.24 crore on Thursday, 9 August 2007.
Among the 30-member Sensex pack, 22 slipped while 8 gained.
IT stocks staged a solid comeback from the day’s low. The BSE IT Index gained 0.85% at 4,774.13. The BSE IT index had declined 2.77%over the last one month to 9 August 2007. It had touched a 52 -week high of 5,611.33 on 19 February 2007 and a 52- week low of 3,983.83 on 9 August 2006.
India's fourth largest software exporter Satyam Computers surged 2.33% to Rs 478 on 8.68 lakh shares. It was the top gainer from Sensex pack. It recovered from low of Rs 452.15
Infosys Technologies gained 0.72% to Rs 1949.90, off the session’s low of Rs 1872 and Wipro rose 0.51% to Rs 480.45, off the day's low of Rs 455. TCS settled 0.37% lower to Rs 1142.30, after touching a low of Rs 1050
The Indian rupee was trading at 40.63 against the US dollar, weaker that as compared to yesterday's close of 40.53/40.54
India’s largest listed cellular services provider Bharti Airtel plunged 3.60% to Rs 838.10, on 3.82 lakh shares. It was the top loser from the Sensex pack. Bharti Airtel added 2.1 million cellular customers in July 2007, taking its user base to 44.8 million.
India’s largest private sector company Reliance Industries (RIL) lost 1.21% to Rs 1819.80 on 9.18 lakh shares. It moved in a band of Rs 1778 and Rs 1821.80. The Egyptian government said on Thursday, 9 August 2007, that Reliance Industries (RIL) will invest $10 billion in the oil refining, petrochemical and plastic industries in Egypt.
Oil & Natural Gas Corporation (ONGC) lost 2.94% to Rs 841. BSE Oil and Gas Index was down 1.71% to 7,755.96
India's largest commercial vehicle maker Tata Motors rose 0.85% to Rs 668.70. Tata Motors, India's top bus and truck maker, is looking to expand its auto sales in Southeast Asia and it plans to use Thailand as a manufacturing base.
Banking and financial shares were under selling pressure throughout the day. The BSE Bankex was down 2.52% at 7,773.71, and was the worst performer among the sectoral indices on BSE. The Bankex had touched a 52-week high of 8,531.80 on 20 July 2007 and a 52-week low of 4,882.74 on 8 August 2006.
India’s largest housing finance company Housing Finance Development Corporation (HDFC ) slumped 3% to Rs 1955.
ICICI Bank (down 2.84% to Rs 865), HDFC Bank (down 2% to Rs 1132) and SBI (down 2.58% to Rs 1607) also slipped.
Other bank stocks also declined. Kotak Mahindra Bank (down 3.62% to Rs 740), Oriental Bank of Commerce (down 1.56% to Rs 228.50), Punjab National Bank (down 2.63% to Rs 498.90), Bank of India (down 1.34% to Rs 242.50), Bank of Baroda (down 0.91% to Rs 295), Axis Bank (down 2.29% to Rs 593) and Allahabad Bank (down 1.64% to Rs 90) were trading weak.
NTPC (down 2.68% to Rs 165.10), and Reliance Communications (down 2.41% to Rs 523.80), were the other losers from Sensex pack.
Deepak Fertilisers (down 6.69% to Rs 95.55), ICSA India (down 9.44% to Rs 1654), Max India (down 6% to Rs 208.80), Lokesh Machines (down 9.28% to Rs 101.65) were the top losers from small-cap and mid-cap basket.
Atlanta (up 10% to Rs 280.40), ANG Auto (up 10.80% to Rs 230), Orbit Corporation (up 16.56% to Rs 524.70), Educomp Solutions (up 5.55% to Rs 2620), and Falcon Tyres (up 5% to Rs 146) surged.
Metal shares lost ground as global metal prices declined. Hindalco Industries (down 2.37% to Rs 152.30), Hindustan Zinc (down 2.36% to Rs 713), Sterlite Industries (down 3.47% to Rs 589), JSW Steel (down 1.80% to Rs 625), and Sail (down 0.86% to Rs 149) slipped.
Commodities futures from Shanghai to Tokyo, including copper and precious metals, fell sharply on global risk aversion. The BSE Metal Index declined 2.30% to 10,863.61
World's sixth-largest steel-maker Tata Steel shed 2.37% to Rs 637 on reports that the company would pay 50 basis points more on the $1-billion tranche with a seven-year tenure to fund the Corus deal.
Orbit Corporation was the most active counter on BSE with turnover of Rs 317.72 crore followed by IFCI (Rs 231.54 crore), and DLF (Rs 171.65 crore).
United Breweries jumped 4.10% to Rs 321.40 on high volumes of 30 lakh shares after two block deals of 13.51 lakh shares each were struck at an average price of Rs 301.37 per shares on BSE by 10:02 IST
Tube Investments rose 0.74% to Rs 61 after two block deals of 6 lakh shares each were executed at Rs 58.95 per share on BSE at 10:09 IST.
Tata Power Company was down 0.49% to Rs 686.10. It signed a contract with Toshiba Corporation for Turbine Generators for the first 4000 MW Ultra Mega Power Project at Mundra.
Jai Corp was locked at the 5% upper circuit of Rs 5580.45 after its board approved a 1:1 bonus issue. The scrip surged 71.02% from a recent low of Rs 3107.60 on 25 July 2007 to Rs 5314.75 on 9 August 2007 backed by the company’s decision to split and/or bonus issue.
Omaxe slipped 1.91% to Rs 343.25 after the National Stock Exchange (NSE) barred further F&O positions in Omaxe as 95% of marketwide limit was reached on Thursday, 9 August 2007.
Aditya Birla Nuvo was down 3.63% to Rs 1410 after the Gujarat High Court approved the scheme of amalgamation of Aditya Birla Insulators with the company. The unlisted firm, Aditya Birla Insulators is the largest Indian manufacturer of high voltage porcelain insulators. It is a subsidiary of Aditya Birla Nuvo.
Ahluwalia Contracts India rose 4.10% to Rs 572 on bagging construction contract worth Rs 688 crore for the Commonwealth Games 2010 Village Residential project from Emaar MGF Construction . The current order book value of the company stands at Rs 2748 crore.
Idea Cellular lost 2.33% to Rs 121.35. It gained 877,931 subscribers in July 2007, lifting its total users to 17 million.
Industrial Investment Trust had gained 1.90% to Rs 98.35 after NN Financial Services and Nimbus (India) made an open offer for 20% stake in the company at Rs 111 per share. The acquirers want to mop up 20,00,000 equity shares of Rs 10 each.
Drug maker Cadila Healthcare slipped 2.80% to Rs 340 despite reports that it is close to acquiring a mid-sized Spanish pharmaceutical firm for about $30 million.
Hindustan Copper advanced 4.70% to Rs 125.90 on reports it plans to enter gold mining in India and is scouting copper mines abroad. The stock jumped 20% in the past 4 trading session from Rs 99 on 3 August to Rs 120.25 on 9 August 2007. Meanwhile, recent reports suggest the Ministry of Mines had proposed a financial restructuring package worth Rs 637 crore for HCL's revival.
All the Asian indices tumbled today, 10 August 2007, following a rout in global markets as credit jitters flared up after a major French bank BNP Paribas froze three funds that invested in US subprime mortgages. Financial shares across the region were hit hard. Nikkei tumbled 2.37%.
Hong Kong's Hang Seng (down 2.88%), Taiwan's Taiwan Weighted (down 2.74%), Singapore's Straits Times (down 1.58%), Shanghai Composite (down 0.10%), and South Korea's Seoul Composite (down 4.20%) plunged.
US stocks fell yesterday, 9 August 2007, on deepening fears about a spreading credit crunch. The Dow Jonex Industrial Average fell 387.18 points, or 2.83%, to 13,270.68. The broader Standard & Poor's 500 index fell 44.40 points, or 2.96%, to 1,453.09. The Nasdaq Composite index fell 56.49 points, or 2.16%, to 2,556.49.
Oil prices were steady at above $71 on Friday, 10 August 2007, as investors watched for any further signs of distress caused by the US subprime mortgage sector crisis. US crude fell 5 cents to $71.54 a barrel. London Brent crude rose 11 cents to $70.32.
Grey Market Premiums
Puravankara Projects 400 4 to 5
Take Solutions 675 to 730 320 to 325
KPR Mills 225 Discount
Refex 65 10 to 12
I V R Prime 550 Discount
OMNI Tech Info 105 60 to 62
Central Bank 102 36 to 38
Zylog Systems Ltd. 350 270 to 275
SEL Manufacture Ltd. 80 to 90 1.50 to 2
Asian Granito 97 7 to 8
Sensex drops 1.54% amidst high drama
The market expected carnage today against the backdrop of weak Asian indices and yesterday's crash, but the Sensex recovered most of its losses on substantial buying in heavyweights, information technology and consumer durable stocks. The Sensex gyrated over 300 points amid high volatility. After crashing in early trades the Sensex touched the day's low of 14,571, down over 500 points to its previous close at 15,100. However, the market witnessed a steady to firm buying in the afternoon and the Sensex rallied sharply, erasing most of its earlier losses. Finally, the Sensex ended 1.54% lower or down 232 points at 14,868 whereas the Nifty was down 1.59% or 70 points at 4,333.
The market breadth was weak, with losers outnumbering gainers by 1.57:1 on the BSE. Of the 2,662 stocks traded on the BSE 1,597 stocks declined, 1,016 stocks advanced and 49 stocks ended unchanged. Barring the BSE IT index, most of the BSE sectoral indices continued to trade weak and dropped around 1-2% each. The BSE Bankex Index was the major loser and lost 2.53% while the BSE Realty Index shed 2.47%.
Majority of the 30-Sensex stocks ended in the red. Among the major losers Bharti Airtel shed 3.61% at Rs838, HDFC plunged 3% at Rs1,955, ONGC crumbled 2.94% at Rs841, NTPC crashed 2.92% at Rs165, Hindalco slipped by 2.85% at Rs152, ICICI Bank tumbled 2.84% at Rs865, M&M lost 2.69% at Rs670, Reliance Communication dropped 2.69% at Rs522, SBI slumped 2.52% at Rs1,608 and Tata Steel fell by 2.41% at Rs637. Select front-line counters rebounded from their intra-day lows and ended in the green. Satyam Computer rose 2.63% at Rs479 and Bajaj Auto advanced 1.49% at Rs2,325, while Tata Motors, Infosys, Wipro and Grasim gained marginally.
Banking stocks witnessed a steep fall. Kotak Bank plummeted 4.22% at Rs735 while Fedral Bank crashed 2.93% at Rs329, Canara Bank slipped by 2.90% at Rs268, PNB fell 2.85% at Rs498 and Axis Bank was down 2.76% at Rs590.
Over 3.72 crore IFCI shares changed hands on the BSE followed by Reliance Natural Resourses (1.52 crore shares), Nagajuna Fertilizers (1.38 crore shares), Harig Cranks (99.77 lakh shares) and JP Hydro (95.22 lakh shares).
Value wise, Orbit Corporation registered a turnover of Rs317 crore followed by IFCI (Rs232 crore), DLF (Rs171 crore), Reliance Industries Ventures (Rs165 crore) and Omax (Rs138 crore).
Sensex settles near day's high on intra-day rebound
After plunging sharply in opening trade, tracking weak global cues, the market kept on recovering as the day progressed on value buying coupled with short covering. It settled near the day’s high. Trading was marked by a high degree of volatility. All the indices on BSE, except the BSE IT index, settled lower. All the European indices were trading lower.
The wholesale-price-based inflation rose 4.45% in the week ended 28 July 2007 compared to 4.36% rise in the previous week.
India's industrial production in June 2007 grew at the slowest pace in eight months as interest rates at a five-year high curbed consumer spending. Production at factories, utilities and mines rose 9.8% from a year earlier, following a revised 10.9% gain in May 2007.
The BSE 30-share Sensex was down 206.83 points to 14,893.32, as per provisional closing. It opened with a sharp 466-point downward gap at 14,631.15 and slumped further to touch a low of 14,570.89. From here, it started recovering to hit a high of 14,901.31 at 15:20 IST
The S&P CNX Nifty lost 61.35 points to 4,341.85, as per provisional closing. It also recovered sharply from a low of 4,239.20
The market breadth also recovered sharply, but still was negative on BSE with 1,574 shares declining as compared to 1127 that advanced, while 58 remained unchanged.
The total turnover on BSE amounted to Rs 5196 crore as compared to Rs 3,790 crore by 14:30 IST.
Among the 30-member Sensex pack, 22 slipped while eight gained.
IT stocks staged a solid comeback from the day’s low. India's fourth largest software exporter Satyam Computers surged 2.33% to Rs 478 on 8.68 lakh shares. It was the top gainer from Sensex pack, recovering from a low of Rs 452.15
Infosys Technologies gained 0.72% to Rs 1949.90, off the session’s low of Rs 1872 and Wipro rose 0.51% to Rs 480.45, off the day's low of Rs 455. TCS settled 0.37% lower to Rs 1142.30, after touching a low of Rs 1050
The Indian rupee was trading at 40.63 against the US dollar, weaker compared to yesterday's (9 august 2007) close of 40.53/40.54
India’s largest listed cellular services provider Bharti Airtel plunged 3.60% to Rs 838.10, on 3.82 lakh shares. It was the top loser from the Sensex pack. Bharti Airtel added 2.1 million cellular customers in July 2007, taking its user base to 44.8 million.
India’s largest private sector company Reliance Industries (RIL) lost 1.21% to Rs 1819.80 on 9.18 lakh shares. It moved in a band of Rs 1778 and Rs 1821.80. The Egyptian government said on Thursday, 9 August 2007, that Reliance Industries (RIL) will invest $10 billion in the oil refining, petrochemical and plastic industries in Egypt.
India's largest commercial vehicle maker Tata Motors rose 0.85% to Rs 668.70. Tata Motors, India's top bus and truck maker, is looking to expand its auto sales in Southeast Asia and it plans to use Thailand as a manufacturing base.
Banking and financial shares were under selling pressure throughout the day. India’s largest housing finance company Housing Finance Development Corporation (HDFC ) slumped 3% to Rs 1955.
ICICI Bank (down 2.84% to Rs 865), HDFC Bank (down 2% to Rs 1132) and SBI (down 2.58% to Rs 1607) also slipped.
ONGC (down 2.94% to Rs 841), NTPC (down 2.68% to Rs 165.10), and Reliance Communications (down 2.41% to Rs 523.80) were the other losers from Sensex pack.
Deepak Fertilisers (down 6.69% to Rs 95.55), ICSA India (down 9.44% to Rs 1654), Max India (down 6% to Rs 208.80), Lokesh Machines (down 9.28% to Rs 101.65) were the top losers from small-cap and mid-cap basket.
Atlanta (up 10% to Rs 280.40), ANG Auto (up 10.80% to Rs 230), Orbit Corporation (up 16.56% to Rs 524.70), Educomp Solutions (up 5.55% to Rs 2620), and Falcon Tyres (up 5% to Rs 146) surged.
All the Asian indices tumbled today, 10 August 2007, following a rout in global markets as credit jitters flared up after a major French bank BNP Paribas froze three funds that invested in US subprime mortgages. Financial shares across the region were hit hard. Nikkei tumbled 2.37%.
Hong Kong's Hang Seng (down 2.88%), Taiwan's Taiwan Weighted (down 2.74%), Singapore's Straits Times (down 1.58%), Shanghai Composite (down 0.10%), and South Korea's Seoul Composite (down 4.20%) plunged.
US stocks fell yesterday, 9 August 2007, on deepening fears about a spreading credit crunch. The Dow Jonex Industrial Average fell 387.18 points, or 2.83%, to 13,270.68. The broader Standard & Poor's 500 index fell 44.40 points, or 2.96%, to 1,453.09. The Nasdaq Composite index fell 56.49 points, or 2.16%, to 2,556.49.
As per provisional data, foreign institutional investors (FIIs) bought shares worth a net Rs 27.23 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 72.14 crore on Thursday, 9 August 2007.
Oil prices were steady at above $71 on Friday, 10 August 2007, as investors watched for any further signs of distress caused by the US subprime mortgage sector crisis. US crude fell 5 cents to $71.54 a barrel. London Brent crude rose 11 cents to $70.32
Market may remain weak
The market is likely to remain under pressure following an overnight fall on the US market. The weakness in the Asian markets in ongoing trades and overnight slump in commodities markets coupled with offloading of FIIs in domestic market may add pressure on the investors sentiment.. Among the major domestic indices, the Nifty could test 4375 on the downside and breaching upon this level it may test 4300, while it has a resistance in the 4435-4475 band. The Sensex has a likely support at 15200 and test higher levels of 15400.
US indices slumped Thursday, with the Dow suffering its second worst session of the year as worries about the global credit market sparked a broad selloff in equities. While the Dow Jones tumbled 387 points at 13271, the Nasdaq dropped 56 points to close at 2556.
Barring Dr Reddy's Lab, rest of the Indian ADRs were battered on the US bourses. HDFC Bank led the slump and crashed over 6% while ICICI Bank, VSNL, and MTNL tumbled over 4.-5% each. Infosys, Wipro, Satyam, Patni Computer and Rediff slumped 2-3% each.
Crude oil prices slipped on Wednesday, with the Nymex light crude oil for September delivery losing 56 cents to close at $71.59 a barrel. In the commodity space, the Comex gold for December delivery fell $13.50 to settle at $672.80 an ounce.
Market to see sharp correction on weak global cues
The market is expected to see sharp correction on weak global cues. The BSE 30-share Sensex lost 207.83 points, or 1.36%, to 15,100.15, on Thursday, 9 August 2007, tracking weak European indices. The S&P CNX Nifty declined 58.90 points, or 1.32%, to 4,403.20, on that day
Annual inflation data for the week ending 28 July 2007 is expected by today, 10 August 2007, afternoon. Inflation growth slowed to 4.36% in the week ending 21 July 2007 due to fall in prices of pulses, fruits and eggs. However, certain food items like vegetables and most manufactured products became dearer. Prices of fuels like naphtha rose.
Asian stocks tumbled across the board on Friday following a rout in global markets as credit jitters flared up, after a major French bank froze three funds that invested in US subprime mortgages. Financial shares across the region were hit hard. Nikkei tumbled 2.61% at 16,721.96.
Hong Kong's Hang Seng (down 3.05% at 21,754.54), Taiwan's Taiwan Weighted (down 2.90% at 8,916.30), Singapore's Straits Times (down 3.41% at 3,296.81) and South Korea's Seoul Composite (down 3.71% at 1,837.80) plunged.
US stocks plunged yesterday, 9 August 2007, on deepening fears about a spreading credit crunch. The Dow Jonex Industrial Average fell 387.18 points, or 2.83%, to 13,270.68. The broader Standard & Poor's 500 index fell 44.40 points, or 2.96%, to 1,453.09. The Nasdaq Composite index fell 56.49 points, or 2.16%, to 2,556.49.
As per provisional data, foreign institutional investors (FIIs) bought shares worth a net Rs 27.23 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 72.14 crore on Thursday, 9 August 2007.
Oil prices were steady at above $71 on Friday, 10 August 2007, as investors watched for any further signs of distress caused by the US subprime mortgage sector crisis. US crude fell 5 cents to $71.54 a barrel. London Brent crude rose 11 cents to $70.32.
Morning Call
Market Grape Wine :
In House :
Nifty at a supp of 4322 and 4265 .
Foreign markets bad sell at every rise .
Out House :
Markets at a support of 14786 & 14664 levels with resistance at 15252 & 15351 levels .
Buy : SBIN & IciciBank at dips
Buy : RIL & Rel at dips
Buy : IDBI at dips
Buy : NTPC at dips
Buy : HanunToys & Apar at dips
Buy : GMR , LITL & PunjLLoyd at dips
Buy : ITC & HLL at dips
Dark Horse : RIL , SBIN , GMR , Apar , Hanun & RNRL
TGIF : Thank God Its Friday : Markets showing signs of Cracking sell at every rise .
US Market hammered as credit woes turn global
BNP Paribas suspends three funds with exposure to U.S. credit markets
US Market was once again rocked by fresh sub prime and credit jitters today, Thursday, 9 August, 2007. American International Group (AIG) saying residential mortgage delinquencies are spreading and Home Depot saying current conditions might force it to reduce the pending purchase price of its supply business kicked off things on a sour note since early trading hours.
It all started in Europe earlier in the day after news that French banking group BNP Paribas had suspended three funds with exposure to U.S. credit markets which actually led three key central banks to inject liquidity in the global financial system, a step the European Central Bank last made the day after 11 September, 2001.
Market was once again reminded that liquidity crunch still remained the headlines, perhaps not only for US but globally. The Dow Jones Industrial Average today plunged by a huge 387.18 points at the end to close at 13270. Tech-heavy Nasdaq shed 56.49 points to close at 2556. S&P 500 lost 44.4 points to close at 1453.09. It was Dow’s triple digit movement for the tenth day in the past thirteen sessions.
Twenty-nine out of thirty Dow stocks closed in the red today. Boeing, Citigriup, Exxon Mobil, Wal-Mart and Caterpillar led the team of Dow laggards for the day. But due to Monday's huge rally, all the three indices are still showing gains for the week.
The broader market posted its worst one-day decline today since March 2003. All 10 economic sectors closed sharply lower. Financial sectors stocks were the worst hit. Dow components, Citigroup and JP Morgan Chase shares both dropped by more than 5%.
AIG says residential mortgage delinquencies are spreading beyond subprime
When market opened in the morning, all the three indices opened in red. Dow was trading lower by more than 200 points. Stocks got hammered right out of the gate as renewed fears about credit concerns took a toll on sentiment.
Of the 10 economic sectors trading lower, Financials paced the way amid new evidence supporting a possible credit crunch. Energy was a close second due to falling crude price.
AIG declared a 32% jump in its Q2 earnings today. But brokerage and insurance stocks continued to bleed after the company said that mortgage delinquencies spreading beyond subprime.
Key leadership continued to deteriorate throughout the day. While widespread weakness throughout Financials was the biggest overhang for stocks, the growing lack of enthusiasm for the Technology sector and its good growth prospects took an added toll on the broader market.
Selling remained the name of the game for the rest of the day and in the final half an hour of trading, Dow sank by another hundred points.
Majority of July same-store sales figures misses forecasts
Retailers were another blemish and were looked weak throughout the day as the bulk of July same-store sales figures missed forecasts. Wal-Mart shares fell 4% today after the retailer said its July sales at stores open at least one year rose 1.9%.
Crude oil futures carried on with downward journey today as fresh credit concerns once again hit Wall Street. Concerns about slowdown in US’s economic growth which will lead to lower energy consumption led to slipping crude prices. The slowdown comes at a time when oil inventories are 11% above the five-year average. Crude-oil futures for light sweet crude for September delivery closed at $71.59/barrel (lower by $0.56/barrel or 0.78%) on the New York Mercantile Exchange.
At the New York Stock Exchange, volume hit nearly 2.8 billion shares, with declining issues outpacing advancers nearly 4 to 1. At the Nasdaq, 3.5 billion shares exchanged hands, with declining stocks topping advancing issues by nearly 2 to 1.
With a handful of companies expected to declare their earnings tomorrow, investors will focus on Import and Export Prices reports which will be out before market opens. Also worth attention will be the Treasury Budget at 14:00 ET.
Daily Market Calls
With the markets around the globe sliding on US subprime worries, we will desist from giving any intra-day calls. Traders should employ strict stop losses as the undertone is fairly weak. Meanwhile, we are giving some investment calls for long-term investors. They are Pantaloon, Sterlite, Infosys, SREI Infrastructure and IDBI.
French fries on Friday
What we know about the global financial crisis is that we don't know very much.
A weak end this weekend is the last things bulls expected. The credit market turmoil in the US is spreading across the world like wild fire. Banks and financial firms from different regions are waking up to the nightmare caused by the US contagion. The latest rumblings in the global markets are courtesy French bank BNP Paribas' announcement that it was suspending redemptions in three of its funds due to lack of liquidity. US insurance giant AIG has also issued a warning about the wider fallout of the sub-prime woes. The central banks in Europe, US and Japan have injected cash into their respective banking systems to tide over the crisis in the credit markets.
Wall Street, which had risen in the previous three days, crashed. Markets in Latin America, Europe and Asia (this morning) have followed suit. And, though India doesn't have any direct exposure to the American sub-prime market, the rising globalisation (read FII inflows) puts it at risk to any untoward development in any part of the world. All Indian ADRs have taken a beating in the US. A gap down opening is in store and any gains of the week are likely to be wiped out today. As me mentioned yesterday, forget the indices and headlines and stick to fundamentally sound counters and ride through the turmoil. Weak hearts can take an extended weekend and skip trading for today. Any bounce back (bear trap) should be used to further lighten positions for the time being.
US stocks crumbled under the weight of the nagging concerns linked to the subprime mortgage contagion and hedge fund losses. Financial companies like banks and brokerages suffered their worst fall since 2002.
Citigroup, JPMorgan Chase and Goldman Sachs led the declines after BNP Paribas stopped withdrawals from three funds with exposure to US subprime loans. The Dow Jones Industrial Average fell 387 points and the S&P 500 slid 3%, their worst declines since a Feb. 27 drop.
The S&P 500 slumped 44 points to 1453.09, while the Dow sank 2.8% to 13,270.68. The Nasdaq Composite Index dived 56.49 points, or 2.2%, to 2556.49. An index of stock market volatility rose to a four-year high.
Seeking to calm credit worries, the European Central Bank (ECB) and the Federal Reserve added cash to money markets. However, the move had an opposite impact, with investors resorting to panic selling.
Bond prices rose as jittery investors dumped stocks in favor of the so-called safer haven of Treasurys. Treasury prices surged, sending the yield on the benchmark 10-year note down to 4.77% from 4.88% late on Wednesday.
In currency trading, the dollar surged versus the euro and slumped versus the yen.
Oil prices fell, with US light crude for September delivery slipping 56 cents to settle at $71.59 a barrel on the New York Mercantile Exchange.
Commodity prices slumped across the board, with gold, silver, platinum and copper all losing ground. Metal and mining stocks slipped in tandem.
European shares fell sharply as fears mounted that fallout from US subprime loans could prove to be more serious than initially thought. The pan-European Dow Jones Stoxx 600 index slumped 1.7% to 374.43, following two straight days of gains. Echoing this, the French CAC-40 closed down 2.2% at 5,624.78, the UK's FTSE 100 dropped 1.9% to 6,271.20 and the German DAX declined 2% to 7,453.59.
Latin American markets too slid. Brazil's Bovespa fell 3.3% to close at 53,430.84. Meanwhile, Mexico's IPC fell 2.5% to finish at 29,883.96. Chile's IPSA lost 1.6% to 3,235.36. Argentina's Merval index tumbled 3.3% to 2,087.68.
In other emerging markets, the RTS index in Russia shed 2.4% to 1939 while the ISE National 30 index in Istanbul, Turkey tanked 4.25% to 62,387.
All Asian markets were down sharply this morning, dragging a key regional index to a two-month low, on concern that losses linked to subprime mortgages will spread to other regions of the world.
Macquarie Bank led financial companies lower after the announcement from BNP Paribas. Exporters such as Toyota and Samsung Electronics dropped on concern that mortgage losses will lead to tighter lending conditions and slower global growth.
The Nikkei in Tokyo was down 429 points to 16,740 while the Hang Seng in Hong Kong plunged 681 points to 21,758. The Kospi in Seoul slid 77 points to 1831 while the Straits Times in Singapore was down 113 points to 3300 and the Taiex in Taiwan tumbled 277 points to 8905.
The Australian and New Zealand dollars fell for a second day as investors dumped their high-yielding assets bought with money borrowed in Japanese yen.
What we know about the global financial crisis is that we don't know very much.
A weak end this weekend is the last things bulls expected. The credit market turmoil in the US is spreading across the world like wild fire. Banks and financial firms from different regions are waking up to the nightmare caused by the US contagion. The latest rumblings in the global markets are courtesy French bank BNP Paribas' announcement that it was suspending redemptions in three of its funds due to lack of liquidity. US insurance giant AIG has also issued a warning about the wider fallout of the sub-prime woes. The central banks in Europe, US and Japan have injected cash into their respective banking systems to tide over the crisis in the credit markets.
Wall Street, which had risen in the previous three days, crashed. Markets in Latin America, Europe and Asia (this morning) have followed suit. And, though India doesn't have any direct exposure to the American sub-prime market, the rising globalisation (read FII inflows) puts it at risk to any untoward development in any part of the world. All Indian ADRs have taken a beating in the US. A gap down opening is in store and any gains of the week are likely to be wiped out today. As me mentioned yesterday, forget the indices and headlines and stick to fundamentally sound counters and ride through the turmoil. Weak hearts can take an extended weekend and skip trading for today. Any bounce back (bear trap) should be used to further lighten positions for the time being.
US stocks crumbled under the weight of the nagging concerns linked to the subprime mortgage contagion and hedge fund losses. Financial companies like banks and brokerages suffered their worst fall since 2002.
Citigroup, JPMorgan Chase and Goldman Sachs led the declines after BNP Paribas stopped withdrawals from three funds with exposure to US subprime loans. The Dow Jones Industrial Average fell 387 points and the S&P 500 slid 3%, their worst declines since a Feb. 27 drop.
The S&P 500 slumped 44 points to 1453.09, while the Dow sank 2.8% to 13,270.68. The Nasdaq Composite Index dived 56.49 points, or 2.2%, to 2556.49. An index of stock market volatility rose to a four-year high.
Seeking to calm credit worries, the European Central Bank (ECB) and the Federal Reserve added cash to money markets. However, the move had an opposite impact, with investors resorting to panic selling.
Bond prices rose as jittery investors dumped stocks in favor of the so-called safer haven of Treasurys. Treasury prices surged, sending the yield on the benchmark 10-year note down to 4.77% from 4.88% late on Wednesday.
In currency trading, the dollar surged versus the euro and slumped versus the yen.
Oil prices fell, with US light crude for September delivery slipping 56 cents to settle at $71.59 a barrel on the New York Mercantile Exchange.
Commodity prices slumped across the board, with gold, silver, platinum and copper all losing ground. Metal and mining stocks slipped in tandem.
European shares fell sharply as fears mounted that fallout from US subprime loans could prove to be more serious than initially thought. The pan-European Dow Jones Stoxx 600 index slumped 1.7% to 374.43, following two straight days of gains. Echoing this, the French CAC-40 closed down 2.2% at 5,624.78, the UK's FTSE 100 dropped 1.9% to 6,271.20 and the German DAX declined 2% to 7,453.59.
Latin American markets too slid. Brazil's Bovespa fell 3.3% to close at 53,430.84. Meanwhile, Mexico's IPC fell 2.5% to finish at 29,883.96. Chile's IPSA lost 1.6% to 3,235.36. Argentina's Merval index tumbled 3.3% to 2,087.68.
In other emerging markets, the RTS index in Russia shed 2.4% to 1939 while the ISE National 30 index in Istanbul, Turkey tanked 4.25% to 62,387.
All Asian markets were down sharply this morning, dragging a key regional index to a two-month low, on concern that losses linked to subprime mortgages will spread to other regions of the world.
Macquarie Bank led financial companies lower after the announcement from BNP Paribas. Exporters such as Toyota and Samsung Electronics dropped on concern that mortgage losses will lead to tighter lending conditions and slower global growth.
The Nikkei in Tokyo was down 429 points to 16,740 while the Hang Seng in Hong Kong plunged 681 points to 21,758. The Kospi in Seoul slid 77 points to 1831 while the Straits Times in Singapore was down 113 points to 3300 and the Taiex in Taiwan tumbled 277 points to 8905.
The Australian and New Zealand dollars fell for a second day as investors dumped their high-yielding assets bought with money borrowed in Japanese yen.
Markets wiped off all its gains as BNP Paribas, France's biggest bank, said that it had temporarily suspended redemptions in three of its funds due to the current turmoil linked to the US subprime mortgages. Earlier, after opening on a strong note bulls were unable to hold on to their gains as weakness in the European markets and selling in the index heavyweights like SBI, L&T and Reliance Industries dragged the benchmark Sensex to hit a low of 15062, finally to close at 15100 losing 208points and NSE Nifty dropped 59 point to close at 4403.
All key sectoral indices ended in red with Consumer Durable and Oil & Gas index losing the most. Even the Mid-Cap and the Small Cap indexes fell over 1% each.
Shares of Omaxe started trading at Rs395 on NSE and ended up by 12% to Rs349. The scrip touched an intra-day high of Rs448 and a low of Rs341 and recorded volumes of over 2,00,00,000 shares on NSE. The company’s IPO was subscribed 68 times and had fixed issue price at Rs310.
Aban Offshore declined 2% to Rs2905. The company announced that it has received an order worth US$80mn from E&P Company in South Asia for deployment of the new built jack up Rig "Deep Driller 4". The scrip touched an intra-day high of Rs2999 and a low of Rs2890 and recorded volumes of over 90,000 shares on NSE.
Reliance Industries dropped 2% to Rs1841. According to reports the company may set up or buy a refinery in Guatemala before starting fuel sales to the U.S. The scrip touched an intra-day high of Rs1912 and a low of Rs1835 and recorded volumes of over 13,00,000 shares on NSE.
Tata Tea edged lower 0.3% to Rs713. Reports stated that the company was eyeing US-based beverage firm Arizona for a likely $2bn. The scrip touched an intra-day high of Rs738 and a low of Rs710 and recorded volumes of over 5,00,000 shares on NSE.
Apollo Hospitals slipped by 2% to Rs499. Nation's biggest health-care company announced that it would finalize its purchase of a medical business process outsourcing company in the U.S. to expand its presence in that business. The scrip touched an intra-day high of Rs528 and a low of Rs495 and recorded volumes of over 46,000 shares on NSE.
MTNL was down by 0.7% to Rs145. The company announced that it would construct an industrial park on the outskirts of the capital New Delhi. The scrip touched an intra-day high of Rs149 and a low of Rs143 and recorded volumes of over 9,00,000 shares on NSE.
Maruti slipped by 1.8% to Rs826. The maker of half of all cars sold in India increased its export target by 10%. The company also announced its plans to export 200,000 vehicles in 2009-10. The scrip touched an intra-day high of Rs869 and a low of Rs817 and recorded volumes of over 8,00,000 shares on NSE.
Select Steel stocks managed to hold on to their gains. Report stated that the Railways would not impose the 15% peak season surcharge on freight cost. SAIL spurred by over 1.5% to Rs150 and Tata Steel was up 0.6% to Rs654. However, JSW Steel was down 3.6%to Rs631, Hindalco lost 3.5% to Rs156 and National Aluminum edged lower 0.9% to Rs259
Public sector banks also ended on the receiving end. Reports stated that the government could allow them to go for stock split. Bank of India fell up by 3% to Rs254, Bank of Baroda lost 5.5% to Rs296 and PNB declined 1.7%to Rs512.
FMCG stocks also ended with losses. Colgate was down by 2.5% to Rs395, ITC, declined by 2% to Rs163, Nirma slipped by 1.3% to Rs166 and Hindustan Unilever dropped 1.1% to Rs201
Realty stocks also witnessed profit booking led by Parsvnath as the scrip fell over 2%t o Rs336, Sobha was down by 1.8% to Rs836, Akruti dropped over 2.5% to Rs507 and DLF slipped 1% to Rs595.
Selling pressure also dragged the Oil & Gas lower. HPCL slipped by 2.5% to Rs252, IOC was down by 2.5% to Rs399, Reliance Petroleum lost 2.2% to Rs112 and BPCL slipped by 1.2% to Rs320. Even the Oil exploration stocks ended lower Reliance Industries was down by 1.6%t o Rs1845 and ONGC lost over 2.5% to Rs865.
Fund Activity:
FIIs were net buyers of Rs272.3mn (provisional) in the cash segment yesterday. While the local institutions pumped in Rs721.4mn. In the F&O segment, FIIs were net buyers at Rs14.61bn. On Wednesday, foreign funds were net buyers of Rs1.9bn in the cash segment. Mutual Funds were net buyers at Rs3.77bn on the same day.
Major Bulk Deals:
Reliance Capital has bought Etc Networks; Goldman Sachs has picked up Freshtrop Fruits; Macquarie Bank has purchased GTL Infra; Morgan Stanley and Goldman Sachs have sold HFCL; Ubs Securities has bought ICSA; Goldman Sachs has purchased Ion Exchange; Templeton Asset Management has picked up Kirloskar Electric; Abn Amro Bank has sold Nagarjuna Fertilizers; Indiabulls Capital has bought Omaxe; Ubs Securities Pioneer Embroideries; Lotus Capital has sold Prudential Pharma.
Insider Trades:
Bhagwati Banquets and Hotels Limited: Narendra G. Somani, Director has purchased from open market 200000 equity shares of the company on 6th August, 2007
Vishal Exports Overseas Limited: Punjab National Bank has sold in open market 1050000 equity shares of the company on 31st July and 2nd August, 2007
Prithvi Information Solutions Limited: Mr. V Satish Kumar, Managing Director has purchased from open market 50000 equity shares of the company on 2nd August, 2007
Lower Circuit:
Tanla, Kothari Products, IID Forgings, Anant Raj Industries, Bank of Rajasthan, Bag Films, Murli Industries, Marathon Nextgen and BF Utilities.
Upper Circuit:
Balasore Alloys, Atlanta, HOV Services, Jai Corp and Vakran Software.
Delivery Delight (Rising Price & Rising Delivery):
Cipla, Dr. Reddy's, Mphasis, Nagarjuna Construction, NIIT and Wipro.
Abnormal Delivery:
Pfizer, Pratibha Industries, GSFC, CESC, PTC, AIA Engineering, Adlabs, Titan, Nicholas Piramal, Opto Circuits and Corporation Bank.
Major News & Announcements:
Aban Offshore gets order worth $80mn
Ahluwalia Contracts gets Rs6.88bn project
Jai Corp has announced 1: bonus share issue
NTPC gets approval for new coal field
BHEL gets contract worth Rs29bn
Ambuja Cements suspends operations at Ambujanagar due to floods
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