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Friday, November 02, 2007
Sensex ends up 250 pts
A fag-end buying interest in heavy weight stocks, especially banking sector, helped the BSE benchmark Sensex wipe off early losses and close over 251 points higher on Friday.
The Sensex, which commenced the day lower by 446 points down, bounced back to close with a gain of 251.88 points at 19,976.23 after shying away from the intra-day peak of over 20,000 points. It touched the day's high of 20,025.63 points and a low of 19,2 55.77, showing a gap of nearly 770 points.
Similarly, the wide-based NSE index Nifty surged 59.95 points at 5,926.40, after touching the day's high of 5,944.75 and a low of 5,714.25 points.
The market remained weak in early trade in line with a weakening global trend but recovered on emergence of buying by funds following reports of a decline in inflation rate.
The late buying was more confined to sectors such as banking, capital goods, metal and public sector undertaking. Banking index gained 389.84 points at 11,241.53 followed by capital goods index by 245.22 points at 20,386.41. PSU index rose by 227.97 poin ts at 9,930.27 and metal index by 111.12 points at 17,693.66
FIIs net sellers of Rs 1,231cr in cash mkt today
Foreign institutional investors (FIIs) were net sellers of Rs 1,230.86 crore (provisional) today, according to data released by BSE.
While FIIs made gross purchases of Rs 3,281.13 crore, gross sales totalled Rs 4,511.99 crore.
Domestic institutional investors (DIIs) were net buyers of Rs 444.74 crore today. While DIIs made gross purchases of Rs 1,324.79 crore, gross sales totalled Rs 880.05 crore.
FIIs were net buyers of Rs 180.60 crore on Thursday, November 1, according to data released by Sebi today. While FIIs made gross purchases of Rs 5,179.40 crore, gross sales totalled Rs 4,998.80 crore.
Mutual funds (MFs) were net sellers of Rs 358 crore on Thursday. MFs made purchases of Rs 1,300.30 crore and sales of Rs 1,658.30 crore.
Post Market Commentary
After struggling for the whole day to come to the green territory, the bulls have finally made the market to end on a cheerful note. It seems to be terrific U turn for the market as it ended with heavy gain after opening with a deep gap. It recovered the losses and also made good gains before ending the trading session. The benchmark index Sensex hit the 20,000 level again but ended marginally below that mark. Further, NSE Nifty, which had slipped below 5700 levels climbed back in the last hour of trading and ended above 5900 level. This sudden recovery of the market is also attributed to the short covering done by the traders. All the indices made a smart recovery & finally ended in green. Atlast, the benchmark index Sensex ended up with the gain of 251.88 points at 19,976.23, whereas Nifty also closed with a gain of 65.95 points to close at 5,932.40. Further, BSE Midcap and BSE Smallcap also closed higher by 55.26 points and 95.82 points at 8,021.80 & 9,742.43 respectively. The market breadth stood flat with 1399 stocks on the advancing side and 1340 stocks on the decline side & 63 unchanged.
BSE Bankex stood as the top gainer for the day with the smart gain 389.84 points to close at 11,241.53. Scrips gained are State Bank of India (8.74%), Bank of Baroda (6.54%), Union Bank (5.92%), HDFC Bank (4.97%) & Allahabad Bank (3.59%).
BSE Capital goods stood in the second position with the gain of 245.22 points at 20,386.41. Pushed it up are Punj Lloyd up by (6.30%), Areva (5.97%), Kir Oil Engineering (5.54%), Lakshmi Machinery Works (3.37%) and Siemens (3.04%).
BSE Oil & Gas also shared the gaining rally with 196.59 points to close at 11,736.43. Scrips gained mainly are Essar Oil by (5.04%), RPL (2.88%), ONGC (2.70%), IOC (2.61%) and Cairn India Ltd (2.12%).
BSE Metal also gained 111.12 points to close at 17,693.66. Scrips surged are, Jindal Steel up by (4.59%), Jindal Stainless (1.56%), Tata Steel (0.98%) & Bhusan Steel (0.94%).
Sensex recovers on short coverings
The market displayed tremendous strength despite weak global cues. The Sensex went into a major recovery mode towards the close and surged over 252 points during the intra-day trades. The market saw a gap-down opening of 359 points and remained in the negative territory for better part of the day on account of heavy selling in heavyweights and IT stocks. Recovery in major banking stocks and short covering in frontline stocks turned the sentiment bullish. The market rallied sharply towards the close and the Sensex surged past the 20,000 mark to touch the day's high of 20,026. The Sensex finally ended the session by gaining 252 points at 19,976, while the Nifty added 66 points at 5,932.
The breadth of the market was neutral. Of the 2,802 stocks traded on the Bombay Stock Exchange (BSE) 1,385 stocks advanced, 1,355 stocks declined, and 62 stocks ended unchanged. Among the sectoral indices the BSE Banking index flared up by 3.59%, the BSE PSU surged 2.35%, the BSE Oil & Gas index added 1.70% and the BSE Realty index gained 1.34%. While other sectoral indices were up around 1% each. However, the BSE Teck index ended in negative territory.
The recovery in the market was led by State Bank of India (SBI), which shot up by 8.74% at Rs2,252. Among the major gainers HDFC Bank advanced by 4.97% at Rs1,759, Reliance Energy moved up by 4.78% at Rs1,852, ONGC added 2.70% at Rs1,366, ICICI Bank scaled up by 2.44% at Rs1,331 and Grasim jumped 2.18% at Rs3,746. Select index stocks witnessed selling pressure. Bharti Airtel was the major loser and dropped 5.10% at Rs895 while, ACC, Satyam Computers, HDFC, Wipro, Cipla, M&M, Reliance Communication, Hindalco, and Bajaj Auto ended with marginal losses.
Banking stocks witnessed buying support. Bank Of Baroda scaled up by 6.54% at Rs373, Union Bank jumped by 5.92% at Rs188, Allahabad Bank added 3.59% at Rs104, Indian Overseas Bank gained 2.72% at Rs138 and Andhra Bank was up 2.43% at Rs90.
Over 4.45 crore Reliance Natural Resources shares changed hands on the BSE followed by Reliance Petroleum (2.98 crore shares), IFCI (1.16 crore shares), Nocil (1.13 crore shares) and Tata Teleservices (1.05 crore shares).
Reliance Petroleum was the most actively traded counter on the BSE and registered a turnover of Rs793 crore followed by Reliance Natural Resources (Rs605 crore), Reliance Energy (Rs391 crore), Reliance Capital (Rs365 crore) and Reliance Industries (Rs293 crore).
Market to consolidate at higher level
The market is expected to consolidate at high levels, after the recent rally. The Q2 September 2007 earnings season has ended. The market is expected to take a pause before making the next move in absence of near term triggers. Spells of high volatility cannot be ruled out.
Sensex had surged 2546.89 points or 14.73% to 19,837.99 on 31 October 2007, registering its biggest monthly rise in four and half years. The S&P CNX Nifty gained 17.51% to 5900.65 in the month.
However, a sharp fall is not expected to due to tremendous liquidity waiting to enter at market. FIIs have been the key drivers of the recent rally. They pumped in Rs 20,591 crore in the month of October 2007. FII inflow in calendar year 2007 totaled Rs 71,985.10 crore (till 31 October 2007). Any slowdown in inflow by FIIs may put brakes on the rally.
Global commodity prices have also been surging along with equity markets. Crude oil prices are now eyeing $100 and $125 per barrel based on the recent momentum which is as a matter of concern.
Much will also depend on how Asian markets pan out. Over the recent past, domestic markets have been taking cues from them
The European Central Bank (ECB) is expected to keep interest rates unchanged which currently stands at 4% in its meeting scheduled on 8 November 2007. Meanwhile, the Bank of England is also expected to hold interest rates at 5.75% when it meets on 8 November 2007.
Sensex gains 733 points
Volatility characterized trading on the bourses, last week, due to alternate bouts of buying and selling. The key indices managed strong gains. Capital goods and banking stocks were the star performers, while FMCG stocks were the worst performers.
The 30-share BSE Sensex gained 733.06 points, or 3.81% to 19,976.23 and the broader based S&P CNX Nifty gained 230.01 points, or 4.03% to 5932.40 in the week ended Friday, 2 November 2007.
Among sectoral indices, BSE Capital Goods index jumped 1,846.26 points, or 9.96% to 20,386.41 in the week. The BSE Banking index or Bankex rose 968 points, or 9.42% to 11,241.53. The BSE FMCG index dropped 66.70 points, or 3.13% to 2,062.04 in the week.
The BSE Mid-Cap index moved up 101.14 points, or 1.28% to 8,021.80 in the week, while the BSE Small-Cap index climbed up 191.48 points, or 2% to 9,742.43.
At its mid-term monetary policy review, RBI raised banks’ cash reserve ration (CRR) by 50 basis points on Tuesday, 30 October 2007 to drain out excess cash and keep inflation low. The move, which will take effect on 10 November 2007, will drain around Rs 16000 crore from the banking system. RBI kept bank rate, repo rate and reverse repo rate unchanged.
As anticipated, the US Federal Reserve lowered its key rate – the Fed funds rate - by a quarter-percentage point to 4.5%, on Wednesday, 31 October 2007. The move comes little over a month after the US central bank cut rates by 50 basis points, which resulted in a surge in foreign money into India with market scaling new high.
On Monday, 29 October 2007, Sensex hit 20,000 mark for the first time in its history in intra-day trade. On that day, it ended up 734.50 points or 3.82% to 19,977.67 and the broader based S&P CNX Nifty ended up 203.6 points, or 3.57%, to 5,905.90.
On Tuesday, 30 October 2007, selling towards the end of the session resulted in Sensex shedding 194.16 points or 0.97% to 19,783.51. Traders resorted to profit taking ahead of the US Fed meeting. Auto and banking stocks edged lower after Reserve Bank of India’s CRR hike announced on that day.
On Wednesday, 31 October 2007, the market went into a correction mode quickly after the opening bell, but recovered later despite weak global cues. The 30-share BSE Sensex ended with a gain of 54.48 points, or 0.28%, to 19,837.99. The broader based S&P CNX Nifty was up 31.9 points, or 0.54%, to 5,900.65.
On Thursday, 1 November 2007, profit booking saw key indices close lower. Most sectoral indices ended in the red, except the Bankex and BSE Capital Goods Index. Market opened a strong note after the Fed rate cut announcement, but lost ground later. The 30-share BSE Sensex ended with a loss of 113.64 points, or 0.57%, to 19,724.35. The broader based S&P CNX Nifty was down 34.2 points, or 0.58%, to 5866.45.
On Friday, 2 November 2007, from a sluggish start to a strong finish, Indian equity indices showed their courage by outperforming global peers in a late rally. The BSE-30 share Sensex ended the day with a gain of 252 points or 1.28% at 19,976.23. The broader based S&P CNX Nifty was up 65.95 points, or 1.12%, to 5932.40.
Last week’s major gainers from the Sensex pack were Oil & Natural Gas Corporation (ONGC) (up 18.17% to Rs 1366.10), Larsen & Toubro (15.07 % to Rs 4461.05), ICICI Bank (12.34% to Rs 1330.60) and Bharat Heavy Electricals (Bhel) (11.66% to Rs 2715.25).
Hindustan Unilever (down 10.04% to Rs 195.75), Bharti Airtel (9.93% to Rs 894.85), Maruti Suzuki (13.54% to Rs 1021.30) and Hindalco Industries (3.18% to Rs 187.50) were the major losers from the Sensex pack.
Bharat Heavy Electricals (Bhel)’s net profit jumped 91% to Rs 687.66 crore on 18.70% growth in net sales to Rs 3965.36 crore in on Q2 September 2007 over on Q2 September 2006.
Larsen & Toubro’s net profit surged 72.95% to Rs 348.02 crore on 43.54% rise in total income to Rs 5,523.27 crore in Q2 September 2007 over Q2 September 2006. International revenue constituted 17% of the gross total revenue during the quarter.
National Thermal Power Corporation (NTPC)’s net profit rose 30.60% to Rs 1925.50 crore on a 3.80% increase in net sales to Rs 8016.90 crore in Q2 September 2007 over Q2 September 2006.
State Bank of India reported 36.04% rise in net profit to Rs 1611.42 crore 33.42% increase in total income to Rs 13658.22 crore in Q2 September 2007 over Q2 September 2006.
Maruti Suzuki India’s net profit rose 26.95% to Rs 466.50 crore on 32.99% rise in sales to Rs 4547.37 crore in Q2 September 2007 over Q2 September 2006.
Power Grid Corporation of India reported net profit to Rs 371.22 crore on total income of Rs 1108.10 crore in Q2 September 2007. Figures for corresponding previous year period were not available.
Neyveli Lignite Corporation (NLC)’s net profit rose 40.98% to Rs 231.04 crore on 20.19% increase in total income to Rs 882.08 crore in Q2 September 2007 over Q2 September 2006.
Tata Power Company (TPC) reported 27.23% rise in net profit to Rs 257.43 crore on 15.95% increase in total income to Rs 1482 crore in Q2 September 2007 over Q2 September 2006.
Steel Authority of India (Sail) posted 17.84% rise in net profit to Rs 1700.24 crore on 7.98% rise in total income to Rs 9467.75 crore in Q2 September 2007 over Q2 September 2006.
Bharti Airtel’s net profit rose 82.26% to Rs 1619.15 crore on 44.94% rise in sales to Rs 6059.89 crore in Q2 September 2007 over Q2 September 2006.
Circuit Systems (India) debuted at Rs 42 on BSE on Friday, 2 November 2007, a premium of 20% over IPO price of Rs 35. The stock settled at Rs 43.50 on that day, a premium of 24.28% over the IPO price. The company had come out with a fixed priced IPO in late September 2007-early October 2007. Circuit Systems (India) is into manufacturing of rigid printed circuit board (PCB), a key electronic component.
Department of Telecommunications (DoT), on Thursday, 1 November 2007, accepted Telecom Engineering Centre's report that has suggested tough norms for spectrum allocation to GSM operators. A move that may make it difficult for cellular players like Bharti Airtel, Vodafone and Idea cellular to get additional frequency.
National Stock Exchange, on Tuesday, 30 October 2007, announced changes its key index viz. the S&P CNX Nifty. Cellular services firm Idea Cellular and oil exploration firm Cairn India are the new entrants in the index. The two outgoing scrips are MTNL and HPCL. These changes come into effect from 12 December 2007.
Annual inflation, based on the wholesale price index (WPI), moved down 3.02% in the week ending 20 October 2007 over 3.07% in the week ending 13 October 2007.
Domestic bourses shrug off weak global cue; Sensex garners 252 points
The market defied the global market slump and surged towards the latter part of the trading session. The barometer index BSE Sensex hit 20,000 mark in late trade, led by rally in banking stocks, auto pivotals and index heavyweight Reliance Industries. Earlier during the day, the market had recovered from lower level after an initial sharp fall caused by weak global markets. It had, however, failed to sustain higher level. European and Asian markets edged lower following a setback in US stocks yesterday, 1 November 2007.
Bank stocks surged after the latest data showed inflation fell to 5-year low. Reliance Energy and Infosys were in demand. Auto, FMCG, realty stocks recovered in late trade. ONGC hit all-time high in afternoon trade. GSM cellular operators Bharti Airtel and Idea Cellular tumbled. Market breadth turned even in late trading, recovering from a weak breadth earlier during the day. BSE Mid Cap & Small Cap indices underperformed Sensex.
Annual inflation, based on the wholesale price index (WPI), rose 3.02% in the week ended 20 October 2007, below the previous week's 3.07% rise. The inflation rate is now at its lowest since 19 October, 2002 when it stood at 3.01%. Inflation data hit the market at around 12:00 IST today.
The Sensex ended up 251.88 points or 1.28% to 19,976.23. It opened with a downward gap of 359.74 points and soon declined to hit a low of 19,255.77. At day’s low of 19,255.77, Sensex had lost 468.58 points. Sensex surged to hit high of 20,025.63 in late trade. At day’s high of 20,025.63, Sensex had risen 301.28 points.
The broader based S&P CNX Nifty was up 65.95 points or 1.12% to 5,932.40.
The market breadth turned marginally positive on BSE: 1,371 scrips advanced as compared to 1,336 that declined while 371 remained unchanged. 21 of the 30 Sensex stocks rose.
Nifty November 2007 futures were at 5,955 at a premium of 22.6 points as compared to spot closing of 5,932.40.
NSE’s futures & options (F&O) segment turnover was Rs 76,145.01 crore today, which was lower than Rs 99,734.02 crore on Thursday, 01 November 2007.
BSE clocked a turnover of Rs 8120 crore, much lower than Thursday (1 November 2007)'s Rs 11,469.70 crore.
The BSE Mid Cap index rose 0.69% to 8,021.80 and BSE Small Cap index rose 0.99% to 9,742.43. Both these indices underperformed Sensex.
BSE Bankex (up 3.59% to 11,241.53), BSE Oil & Gas index (up 1.7% to 11,736.43), BSE PSU index (up 2.35% to 9,930.27) & BSE Realty index (up 1.34% to 10,327.90) outperformed Sensex.
BSE Auto index (up 0.59% to 5,423.10), BSE Consumer Goods index(up 1.22% to 20,386.41), BSE FMCG index (up 1.17% to 2,062.04), BSE IT index (up 0.42% to 4,634.64), BSE Metal index (up 0.63% to 17,693.66) underperformed Sensex.
India's largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) rose 1.54% to Rs 2,712.70. It came off from session's low of Rs 2,605. Reliance Energy rose 4.59% to Rs 1,849. It came off from session's low of Rs 1,680.
Banking stocks surged in late trade. India’s largest public sector bank by operating income State Bank of India (SBI) rose 8.74% to Rs 2,251.75 and was the top gainer from Sensex pack after it revised interest rates on domestic term deposits. SBI cut interest rates on 550 day domestic term deposits by 25 basis points to 8.75% from 7 November 2007. The bank has also withdrawn its super-saver term deposit scheme for a minimum deposit of Rs 10,000, carrying a 9% interest for 4-5 years and 8.5% for deposits over 5 years.
HDFC Bank (up 4.97% to Rs 1,758.75) and ICICI Bank (up 2.44% to Rs 1,330.60) edged higher.
India’s largest oil exploration firm by revenue ONGC rose 2.7% to Rs 1,366.10. It hit an all time high of Rs 1,386.90 today.
FMCG stock rose on buying at lower level after their recent sharp fall. India’s largest cigarette maker by sales ITC rose 2.04% to Rs 175.35. Hindustan Unilever rose 0.77% to Rs 195.75.
Capital goods stocks edged higher. Larsen & Toubro (up 0.78% to Rs 4,461.05), Bharat Heavy Electricals (up 2.03% to Rs 2,715.25) and Suzlon Energy (up 0.29% to Rs 1,968.45) edged higher.
Realty stocks climbed. Indiabulls Real Estate (up 7.07% to Rs 649.50) and Unitech (up 2.2% to Rs 378.25) edged higher. DLF (up 0.44% to Rs 932).
The India’s largest commercial vehicles manufacturer by sales Tata Motors rose 1.46% to Rs 755.20 after posting 13% rise in sales at 49,354 units in October 2007 over October 2006. Its commercial vehicles sales rose 16% at 27,103 units and domestic passenger car sales up 8% at 18,021 units in October 2007 over October 2006.
Mahindra & Mahindra, India's biggest tractor maker by sales, declined 1.23% to Rs 755.55 after it signed an agreement with Navistar International Corporation to a set up a joint venture to produce diesel engines for medium and heavy commercial trucks and buses in India.
India’s larget cellular services provider in terms of market share Bharti Airtel declined 5.1% to Rs 894.85 and was the top loser from Sensex pack. Idea Cellular lost 1.13% to Rs 131.30. The government, on Thursday, 1 November 2007, accepted Telecom Engineering Centre's report that suggested tough norms for spectrum allocation to GSM operators, a move that may make it difficult for players like Bharti, Vodafone and Idea to get additional frequency.
Cipla declined 1.39% to Rs 173.60. It has received a notice from the Government demanding Rs 49.47 crore, inclusive of interest, for alleged overcharging by the company during the period April 2006 to March 2007 in respect of the drug Salbutamol.
India’s second largest cement producer ACC declined 1.9% to Rs 1,032.55 after it posted 6.66% rise in cement dispatches to 1.76 million tonnes in October 2007 over October 2006.
India's third-largest cement maker Ambuja Cements rose 0.63% to Rs 144.70 after it posted 3.6 % rise in cement shipments to 1.48 million tonnes in October 2007 over October 2006.
India’s biggest dedicated housing finance firm in terms of revenue HDFC lost 1.62% to Rs 2,653. Wipro (down 1.47% to Rs 492.05) and Satyam Computer Services (down 1.87% to Rs 462) edged lower. Infosys Technologies rose 2.04% to Rs 1,908.35.
Among side counters, Parle Software (up 20% to Rs 1,201.80), Amrutanjan Drugs & Chemicals (up 20% to Rs 545.75), Kar Mobiles (up 20% to Rs 269.70), Ruchi Soya Industries (up 20% to Rs 117.95) and Lakshmi Electrical Control Systems (up 20% to Rs 462.10) rallied.
Denison Hydraulics India (down 10% to Rs 783.05) and Universal Starch (down 9.74% to 17.15) edged lower.
Reliance Natural Resources rose 9.40% to Rs 142. It clocked the highest volume of 4.45 crore on BSE. Reliance Petroleum clocked the second highest volume of 2.99 crore. It rose 2.88% to Rs 269.40. IFCI clocked the third highest volume of 1.16 crore shares. It declined 1.61% to Rs 82.45. National Organic Chemical Industries (NOCIL) clocked fourth highest volume of 1.13 crore shares on BSE. It surged 20% to Rs 40.30. Tata Teleservices (Maharashtra) was flat at Rs 43.90. It was the fifth highest stock in terms of volume on BSE. 1.06 crore shares changed hands in the counter.
Reliance Petroleum clocked highest turnover of Rs 793.92 crore on BSE. Reliance Natural Resources (Rs 605.13 crore), Reliance Energy (Rs 391.57 crore), Reliance Capital (Rs365.56 crore) & Reliance Industries (Rs 293.56 crore) were other major turnover grossers on BSE.
European markets were in the red. France’s CAC 40 (down 1% to 5,673.13), Germany’s DAX (down 0.85% to 7,813.54) and UK’s FTSE 100 (down 1.19% to 6,508) edged lower.
Asian markets slumped today, 2 November 2007, hurt by an overnight sell-off on Wall Street. Hang Seng (down 3.25% at 30,468.34), Nikkei (down 2.09% at 16,517), Taiwan's Taiwan Weighted (down 3.39% at 9,273.09), Singapore's Straits Times (down 2.13% at 3,722.65) and South Korea's Seoul Composite (down 2.12% at 2,019.34) all edged lower.
US markets tumbled yesterday, 1 November 2007, after brokerages downgraded Citibank and Bank of America, sparking fears of more credit crisis fallout. The Dow Jones industrial average slumped 362.14 points or 2.60%, to 13,567.87. The Standard & Poor's 500 index declined 40.94 points, or 2.64%, at 1,508.44, while the Nasdaq Composite index dropped 64.29 points, or 2.25%, to 2,794.83.
The Sensex slipped 113.64 points, or 0.57%, to 19,724.35 on Thursday, 1 November 2007. The broader based S&P CNX Nifty declined 34.20 points, or 0.58%, to 5,866.45, on Thursday, 1 November 2007.
As per provisional data, FIIs purchased shares worth a net Rs 74.25 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 56.22 crore on Thursday, 1 November 2007.
New York's main futures contract, light sweet crude for delivery in December gained 41 cents to $93.90 a barrel. Brent crude was up 71 cents to $90.43 a barrel.
Weekly Close: Can nothing stop this raging Bull ?
Lets share with you what we believe is History being made. Indian markets are on an unprecedented bull run. It was fist the FIIs and now the Domestic Instutitions and locals who dont want to get left out. Markets kissed the big level of 20000 for the Sensex this week, However, that level was met with some profit taking. The RBI hiked CRR which saw some negatives and that was followed by a Fed cut of 25 basis points. The CRR hike by the RBI came in as a surprise though the US fed rte cut was on expected lines. Markets reacted accordingly. Much of it was discounted. Global markets crashed on Thursday and that impacted the Indian markets with a deep red opening. But the price action showed that the Bull will not die easily. The markets just bounced back. Rights issue of SBI was seen as the trigger and this recovery in banking stocks accompanied by value buying in the mid caps had the markets make a solid comeback.
Crude hit over $95 to a barrel this week and thats had the oil refining companies rolling down.. of course, Reliance Petro and standalone refiners were strong too and people kept guessing on the Chevron stake. The airline stocks crash landed on such high crude prices.
Sensex managed to gain over 3.5% this week This was with the capital goods and the power sector capital goods stocks which lead the way. Among the big gainers for the Markets were ABB + 11% BHEL + 11%, ICICI +12%, Larsen +15%, ONGC +17%. Reliance Energy +10%, Siemens +10%, State Bank +8%,
Among the laggards were ACC -4%, BPCL -5%, Bharti - 10% Cipla -5%. Dabur - 6%,, Hero Honda -8%, HLL - 10%, Jet - 10%, Mahindra -5%, MTNL -7%, Maruti -13%,
The Telecom sector was the one with a lot of action. The GSM players were on the receiving end of the markets with regards to the Spectrum allocation. We have not heard the last of this yet.. but for now Bharti and Idea may see pressure.
The Auto sector continued to be lacklustre to negative. Maruti results were alright and the sales numbers for October were quite good.but the launch of i10 by Hyundai and a more competitve scenario had the stock hammered down this week. Tata Motors numbers were clearly disappointing and that was as expected. The Auto sector has been a laggard and a CRR hike meant more negatives for the sector. Going ahead we believe that the psessure will remain here as well.
A couple of stocks worth mentioning are on the mining side. The Government is set to clear the Mining policy in the Winter session of Parliament. The companies with mines were in focus. Thiee include Jayaswal Neco, Raipur Alloys, Usha Martin, Electrosteel casting amongst others Solar Explosives also was up and this still we believe will be an interesting idea.
We had a research note on Greenply this week on the back of its performance. The company continues to grow well with good utilisation of its facilities. It has gone ahead and made a couple of acquisitions and this in the West of India and that serves its locational strategy well. The company imports 40% of its timber requirement and that gets assistance from an appreciating rupee
We had a results analsys note on Esab India which is into Welding Electrodes and growth has been muted as well. The topline was flat but it was margin which got impacted because of higher raw material costs. Going ahead we remain confident on the back of higher infrastructure spend and the amount of steel which is to be produced. The big trigger is that Charter Plc which is the parent has increased stake through an open offer and that means that the story is well set for bigger plans. May be a meeting with Charter Plc will yield something new.
We had a results analysis of Titan. The company is doing well . The company to grow th gold jewelry business by over 45% and the margins too were better as studded jewelry now accounts for 35% of the segment. The Time segment also did well and its important to note that the festive season this year will be in the 3rd quarter. The results were good. Valuations is where the story turns into a Horror movie. Do read that note.. on what potentially are the triggers here.
Next week, there is nothing much to talk already. We are heading into Diwali which is the biggest annual festival for the markets. With such a strong performance, even when the global markets were down, the confidence would be riding high. Can we do 21000 for Sensex. The talk is for that.. but we would rather keep our heads on our shoulders. Going ahead for the Indian markets, no further hikes are possible. The Next action from the RBI will be the rate cuts. Thats positive for the banking sector and one could expect action there. We already saw that happening this week. There is a possibility of fuel price hike but the Government has an eye on elections and that may not happen. The negatives if at all are likely from the Global issues. Markets are likely to remain volatile with an upward bias. In such markets our performance is exceptional. Do have a look at last weeks performance and thats really heart warming.
Technically speaking: Sensex faces resistance at 20050 and 20200. As trong Support at 19700 and 19260. Expect more Volatility and some upsides in Midcaps..
Latest Grey Market Premiums - Mundra, Religare, Edelweiss
Reliance Power -- 54 to 55
Mundra Port & Sez 400 to 440 405 to 410
Empee Distilleries 350 to 400 155 to 157
Edelweiss 725 to 825 550 to 575
Varun Ind. 60 43 to 44
Religare Enterprises 160 to 185 308 to 310
Barak Valley Cement 37 to 42 17 to 18
Circuit Systems (India) Ltd. 35 6 to 8
Rathi Bars 35 3 to 4
Allied Computers 12 15 to 16
SVPCL 40 to 45 2 to 3
Pre Market Watch
Indian market is likely to have a gap down opening for the day, as the global markets are giving very weak cues. Further the worries about lack of participation of foreign funds may have little negative impact on the market. On Thursday, the benchmark index Sensex ended up with the loss of 113.64 points at 19,724.35, whereas Nifty also closed with a loss of 34.20 points to close at 5,866.45. We expect that the market may trade with occasional volatility & recovery can be seen at the later stages.
On Thursday, the US markets ended lower as the Dow Jones Industrial Average (DJIA) ended with a loss of 362.14 points to close at 13,567.87. Further the NASDAQ Composite & S&P 500 (SPX) index also ended down by 64.29 points & 40.94 points at 2,794.83 & 1,508.44 respectively.
Indian ADRs ended in red territory. In telecommunication sector, VSNL & MTNL plunged by (7.50%) & (6.18%) respectively. Further in Banking sector ICICI bank & HDFC bank dropped by (4.19%) & (3.22%). In Technology sector, Patni Computers decreased by (9.05%), along with Wipro, Infosys & Satyam by (1.28%), (2.00%) & (1.68%) respectively.
The major stock markets in Asia are also trading weak. Hang Seng is trading in deep red with a loss of 798.36 points at 30,694.52. Along with this, Japan''s Nikkei is trading with a loss of 289.13 points to trade at 16,581.27. Singapore''s Straits Times index is also trading lower by 66.23 points at 3,737.33, whereas Seoul Composite lost 14.92 points to trade at 2,048.22.
Yesterday, the FIIs performed mixed activity as the gross equity purchased was Rs.5442.20 (in crores), and the gross debt purchased was Rs.17.00 (in crores) as against the gross equity sold was Rs.5214.20 (in crores) and the gross debt sold was Rs.55.5 (in crores). The net investment of equity was Rs.228.00 (in crores) and the net debt investment was Rs.-38.5 (in crores).
Today, Nifty has support at 5,650 and resistance at 5935 and BSE Sensex has support at 19,224 and resistance at 19,910.
Morning Call - Nov 2 2007
Market Grape Wine :
In House :
Nifty at a supp of 5700 and 5789 .
Gap down opening expected. Outlook to stay positive till Nifty stays above 5700
Intra Day: Sell Bhel below 2599 with a TGT of 2518 and a SL of 2638
Sell ACC below 1053 with a TGT of 1015 and a SL of 1080
F&O: Sell Aptech below 351.50 with a TGT of 335 and a SL of 357
Sell JP associates below 1377 with a TGT of 1330 and a SL of 1396
Out House :
Markets at a support of 18981 & 19291 levels with resistance at 19786 & 19891 levels .
Maintain strict stop loss for your trades as markets to be very choppy and volatile .
Buy : RIL at dips
Buy : REL & RPL at dips
Buy : JpAsso at dips
Buy : RComm at dips
Buy : ONGC at dips
Buy : IBUlls at dips
Buy : Centextile at dips
Buy : Aban at dips
Dark Horse : ABAN ,REL , Adlabs ,ONGC , RIL , Centextile , JPASSO & SBIN
TGIF : Thank God Its Friday : Markets in correction mode book profits at higher levels .
Market to undergo correction
The market is expected to decline following weak cues from global markets. US markets slumped yesterday, 1 November 2007 while Asian markets also suffered sharp losses in early trade today, 2 November 2007.
With major events—Reserve Bank of India (RBI)’s credit policy, Securities & Exchange Board of India (Sebi)’s meet on finalising participatory notes proposals, the Fed meet on interest rates and second quarter earnings done with, profit booking is likely to come at higher levels in the absence of near term triggers.
Asian markets slumped today, 2 November 2007, hurt by an overnight sell-off on Wall Street. Hang Seng (down 2.54% at 30,694.52), Nikkei (down 1.71% at 16,581.27), Taiwan's Taiwan Weighted (down 1.79% at 9,426.39), Singapore's Straits Times (down 1.74% at 3,737.33) and South Korea's Seoul Composite (down 0.72% at 2,048.22) all edged lower.
US markets tumbled yesterday, 1 November 2007, after brokerages downgraded Citibank and Bank of America, sparking fears of more credit crisis fallout. The Dow Jones industrial average slumped 362.14 points or 2.60%, to 13,567.87. The Standard & Poor's 500 index declined 40.94 points, or 2.64%, at 1,508.44, while the Nasdaq Composite index dropped 64.29 points, or 2.25%, to 2,794.83.
The Sensex slipped 113.64 points, or 0.57%, to 19,724.35 on Thursday, 1 November 2007. The broader based S&P CNX Nifty declined 34.20 points, or 0.58%, to 5,866.45, on Thursday, 1 November 2007.
As per provisional data, FIIs purchased shares worth a net Rs 74.25 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 56.22 crore on Thursday, 1 November 2007.
New York's main futures contract, light sweet crude for delivery in December gained 41 cents to $93.90 a barrel. Brent crude was up 71 cents to $90.43 a barrel.
Weak global indices may weigh on sentiment
The market is likely to remain under pressure following an overnight fall on the US market and weakness among major Asian indices in the ongoing trades. Intra-day volatility may also weigh on the sentiment. Among the key local indices, the Nifty has a key support at 5750 and a slip below this level could see it test lower levels around 5650, while on the upside the index could test 5950. The Sensex has a likely support at 19000 and may face resistance at 20500.
US indices suffered one of its biggest declines of the year on Thursday after a Citigroup downgrade reminded that the credit crisis is still lingering. While the Dow Jones dropped 362 points to close at 13588, the Nasdaq ended 64 points lower at 2795.
Crude oil prices inched lower, with the Nymex light crude oil for December delivery slipping by $1.04 at $93.49 a barrel. In the commodity segment, the Comex gold for December series slumped $1.60 to settle at $793.70 an ounce.
Trading Calls
Nifty (5866) Supp 5605 Res 5936
Sell Bajaj Auto (2430) SL 2450 Target 2385, 2380
Sell Kotak Bank (999) SL1007 Target 986, 981
Sell Infotech Enterprise (275) SL 280 Target 266, 264
Buy Ranbaxy (436) SL 431 Target 445, 449
Buy Bata (235) SL 230
Target 244, 247
November Rain…expect some pain!
If you want the rainbow, you gotta put up with the rain.
A sudden change in weather can make people sick. The bulls may start coughing and sneezing and lose taste for things otherwise tempting. The unseasonal showers seem to have blown away and the Mumbai sky looks brighter than yesterday. However, one cannot say the same for the stock market today. The euphoria post the much expected 25bps rate cut by the Federal Reserve appears to have vanished in a jiffy. Suddenly fresh dark clouds have gathered on Wall Street over the subprime contagion and its wider fallout for the US financial sector.
US financial stocks had the steepest drop in five years after analysts said Citigroup may be short of capital and advised investors to sell the shares. Citigroup, the biggest US bank by assets slid the most since 2002 after CIBC World Markets said its dividend may be cut and Credit Suisse reduced its rating. Bank of America had its biggest decline in four years. In addition, retailers fell, led by Target, after consumer spending slowed more than economists forecast.
Taking the cues from Wall Street, stock markets across Asia are down sharply (1-3%) this morning though some markets have recovered some what. We expect a gap-down opening in our market given the weak trend across global equity markets. Also, as mentioned yesterday, FII inflows have tapered off in the past few days, and not much help is coming from local institutions either.
Having lifted the Sensex past the 20,000 mark and Nifty above 6,000, the market could well go through some consolidation (or correction). The volatility will be high. Day traders will have a tough time, while long-term bulls can buy the India story to stock up for a long journey. Don't be surprised if the bulls manage to pull back into the positive territory by the end of the day. Lighten your short-term portfolio and enjoy your weekend. Besides, you have a lot of Diwali shopping to do outside the stock market this weekend. Take some cash home.
The S&P 500 lost 41 points, or 2.6%, to 1,508.44. Financial shares, this year's worst-performing industry, led the slide with a 4.6% drop, the most since September 2002. The Dow Jones Industrial Average slumped 362 points, or 2.6%, to 13,567.87. The Nasdaq slipped 64 points, or 2.3%, to 2,794.83. More than 13 stocks fell for every one that rose.
Adding to the negative sentiment, Credit Suisse reported a 31% drop in profits on Thursday hurt by the US housing market and lower demand for buyout loans. Also pressuring stock were disappointing results from oil major Exxon Mobil.
The biggest US economic data - the monthly employment report for October - for the week will be announced on Friday before the opening bell. Both economists and Wall Street will be closely looking for signs whether the subprime mortgage crisis has spilled over to the broader economy.
Unitech could be in focus as the company has won a major land deal at Visakhapatnam. The real estate major will develop a total built-up area of 100mn sq. ft. Bharti and Idea might add to their losses as the Government seems to have accepted the tighter norms for fresh spectrum allocation to the existing players. On the other hand, RCOM could gain following upbeat comments made by Anil Ambani and due to the fact that it will gain from the new spectrum allocation rules.
Reliance Energy is another stock that might advance amid reports that it has bagged its first ever transmission order for the western grid. The company is also believed to have formed a transmission JV with Power Grid Corp. Another realty firm Omaxe could also be in the limelight as it has also won a bid to acquire a 19.5-acre land at Visakhaptanam. Shares of Circuit Systems India Ltd. and Net 4 India Ltd. will get listed on the bourses today.
Oil prices eased after hitting a new record high of $96.24 a barrel earlier in the day. Light, sweet crude for December settled 42 cents lower to $93.07 a barrel in afternoon trade on the New York Mercantile Exchange.
Market breadth was negative. Losers beat winners by 7 to 1 on the New York Stock Exchange on volume of 1.74 billion shares. Decliners topped advancers by nearly 5 to 1 on the Nasdaq as 2.58 billion shares traded hands.
Treasury prices gained, lowering the yield on the benchmark 10-year note to 4.35% from 4.47% a session earlier. The dollar, which hit yet another record low against the euro Wednesday after the Fed rate cut, recovered slightly on the European currency but was lower versus the yen.
Gold prices, which Wednesday topped $800 for the second straight session, retreated $1.60 to $793.70 an ounce.
European shares posted sharp losses as well, led by financial shares. The pan-European Dow Jones Stoxx 600 index started November in the red, falling 1.5% to 382.57. The French CAC-40 fell 2% to 5,730.92, the UK's FTSE 100 closed down 2% at 6,586.10 and the German DAX 30 slumped 1.7% to 7,880.85.
In the emerging markets, the Bovespa in Brazil tumbled by nearly 2% to 64,050 while the IPC index in Mexico was down over 2% to 30,806. The RTS index in Russia was flat at 2220 and the ISE National-30 index in Turkey dropped 0.3% at 73,161.
Asian stocks fell the most in almost two weeks, led by Mitsubishi UFJ Financial after analysts said Citigroup may be short of capital, renewing concerns that losses from US subprime loans will reduce profitability.
Samsung and Toyota paced exporters lower after US consumer spending rose less than forecast and manufacturing activity slowed more than estimated.
The Morgan Stanley Capital International Asia-Pacific Index lost 1.3% to 170.10 as of 9:30 a.m. in Tokyo, falling from a record. The Nikkei 225 Stock Average declined 1.9% to 16,554.02. The Hang Seng was down 767 points at 30,724. All regional markets open for trading declined.
Fed’s decision to cut its key short-term rate by a quarter percentage point lifted the Nifty index to breach the 6,000 mark in the opening trades. However, as the session progressed bulls were unable to hold on to their gains as selling pressure in the index heavyweights like Reliance Industries, Bharti Airtel, ITC and HDFC. The benchmark index fell from an intra-day high of 20,204 finally ending 113 points lower to close at 19,742 and Nifty lost 34 points to close at 5,866.
Tata Steel slipped 2.2% to Rs885. The company announced that it has signed a MoU with Vietnam Steel Corporation for a cold rolling mill complex. The scrip touched an intra-day high of Rs928 and a low of Rs873 and recorded volumes of over 21,00,000 shares on NSE.
IOC ended flat at Rs482. The company announced its plans to retail CNG via its chain of petrol pumps. The scrip touched an intra-day high of Rs495 and a low of Rs466 and recorded volumes of over 8,00,000 shares on NSE.
Wipro slipped 1.6% to Rs499. The company announced that they have formed a Joint Venture with CISCO to develop IT solutions across the globe. The scrip touched an intra-day high of Rs513 and a low of Rs493 and recorded volumes of over 5,00,000 shares on NSE.
Bharti Airtel India's largest mobile-phone operator, fell by over 6.5% to Rs940 posting its biggest drop in eight days after reports stated that India would increase fees for airwaves used to offer wireless services. The scrip touched an intra-day high of Rs1074 and a low of Rs113 and recorded volumes of over 63,00,000 shares on NSE.
Bajaj Auto slipped 1.8% to Rs2429. The company declared its October sales figures at 2,78,176 units (down 0.50%). The scrip touched an intra-day high of Rs2538 and a low of Rs2402 and recorded volumes of over 1,00,000 shares on NSE.
M&M gained 1.5% to Rs765 after the company registered a 45.8% growth in October ’07 with total domestic sales of 23,578 units as against 16,173 units in October ‘06. Cumulative sales including exports grew by 37.3% in October ’07 with total sales of 1,30,772 vehicles as against 95,253 vehicles for the corresponding period last year. Excluding
Maruti Suzuki has slipped 1% to Rs1064. The company announced that it sold 69,415 vehicles in October, 15% up from 60,163 units in the same month last year. Maruti, 54.2% owned by
Patni lost by over 6% to Rs377 after the stake sale was called off over differences over management control. The scrip touched an intra-day high of Rs409 and a low of Rs365 and recorded volumes of over 11,00,000 shares on NSE.
Pantaloon Retail was down 3% to Rs592. The company declared its unaudited financial results for the quarter ended September 30, 2007, wherein the gross turnover (Rs1176.27) for the quarter increased by 78.5%; net sales/ income from operations (Rs10.87bn) increased by 79.6%; PBIT (excluding extraordinary income) (Rs963.4mn) increased by 126.6%; and net profit (excluding extraordinary income) (Rs296.7mn) increased by 87%. The scrip touched an intra-day high of Rs627 and a low of Rs585 and recorded volumes of over 76,000 shares on NSE.
L&T bags Rs55.5bn order to build new integrated passenger terminal at Mumbai airport.
Unitech acquires 1,750 acre land in Vishakhapatnam for Rs33.3bn.
RCOM has earmarked more than Rs50bn to roll out GSM
services across the country.
The Hero Group is in talks with German auto major Daimler for a commercial vehicle (CV) venture.
HCL Tech plans to set up three technology hubs with investments of Rs27.5bn.
Reliance Energy Transmission (RET), Reliance Energy’s transmission arm, is set
to be awarded the first wholly owned private transmission project in the western region.
Ranbaxy has received tentative approval from the USFDA to make and sell the hypertension tablets, Valsartan.
The international port operator DP World of Dubai has approached SEBI with
string of complaints against Mundra Port and SEZ IPO.
The Board of Directors of Patni Computer has decided to search for a new CEO.
RCom is in the process of making its DTH arm ‘Reliance
BlueMagic’ a 100% subsidiary.
HTMT is in final stage of negotiations for acquiring two BPO companies in US
and one in the UK for US$300mn.
Hindustan Copper raises copper prices by 2.5% across all
categories to match international prices.
Suzlon plans to export products to 40 countries from the present 14 over the next five years.
Gitanjali Gems is close to acquiring a US-based jewellery retail chain.
Suven Life Sciences has secured two patents in Australia and New Zealand for its
New Chemical Entities.
Oil India and HPCL may jointly bid for exploration licensing in both upstream and downstream activities as well as CNG marketing and city gas distribution.
Eveready Industries plans acquisitions in the packet tea segment in Gujarat,
Maharashtra and UP.
Aptech is in the process of winding up its Bangladesh subsidiary, Aptech (WOS)
Bangladesh.
Maxis (Aircel) withdraws from the ongoing litigation between GSM operators and the DoT and TDSAT.
FII Investment Trend:
FIIs were net buyers of just Rs742.5mn (provisional) in the cash segment yesterday while the local institutions pumped in Rs562.2mn.
In the F&O segment, FIIs were net buyers of Rs11.61bn.
On Wednesday, FIIs were net buyers of Rs2.28bn in the cash segment.
Major Bulk Deals:
Merrill Lynch has sold Diamond Cables and Dynamic Tech; Morgan Stanley has bought Genus Power while Merrill Lynch has sold the stock; UBS has purchased Jyoti; JP Morgan has sold M&M; UTI has sold Marksans; Merrill Lynch has sold Prime Focus.
Upper Circuit:
Zandu Pharma, Lanco Global, Goldstone Tele, ABG Heavy, Marksans, Ferro Alloys, Alphageo and TCI Industries.
Lower Circuit:
RIIL, HFCL, Jai Corp, Assam Company, Marathon Nextgen and BF Utilities.
Mundra IPO running into trouble ?
The international port operator DP World of Dubai, which owns and operates a container terminal at Mundra through P&O Ports, has approached stock market regulator SEBI with a string of complaints against Mundra Port & SEZ.
The Adani-owned Mundra Port is currently in the market to raise around Rs 1,750 crore, the first initial public offer (IPO) by a local port company.
In a communication to SEBI, dated October 30,’07, DP World has alleged that the red-herring prospectus (RHP) has failed to make “adequate disclosures” to potential investors. In fact, the lead managers of the IPO had appended the draft red-herring prospectus (DRHP) with a few additional risk factors after DP World sent an earlier communication to Sebi on October 16, 2007.
The global co-ordinators and book running lead managers to the IPO are DSP Merrill Lynch, JM Financial and SSKI. The book running lead managers are Enam Securities, Kotak Mahindra, I-Sec and SBI Capital Markets.
The IPO, which opened on November 1, was already subscribed 4.7 times, based on the preliminary bidding data received from stock exchanges. The price band has been fixed between Rs 400 and 440 per equity share. The IPO will close on November 7, 2007. Mundra International Container Terminal (MICT), a P&O Ports terminal, is now owned by DP World, after the Dubai-based terminal giant bought over the UK-based P&O Ports in a $6-billion deal in 2005.
MICT has alleged, “The framework agreement precludes MPSEZ and its promoters from developing or investing in any other container terminal business anywhere in Gujarat for 10 years, till November 8, 2012.” “This has not been pointed out in the RHP,” it said.
Adani Port Infrastructure (APIPL) has entered into an MoU to acquire 100% in Dholera Port. “APIPL is a party to the framework agreement as is Gautam Adani (chairman of MPSEZ),” claims MICT.
“The RHP deliberately mentions the payment of $70 million for the second stage assets (phase II of the container terminal currently operated by the Adani company) without mentioning that these are the ‘mutually agreed terms’ between the parties. It would significantly affect the company’s valuation. Such a vital issue was never mentioned in DRHPs and has only been mentioned in passing in an unrelated part of the RHP concerning court proceedings,” alleges the MICT letter.
Top officials of MPSEZ told ET that DP World has fought a legal battle on these issues without any success. “The IPO managers can’t amend the prospectus if it’s not a reality,” said one official. After losing in Ahmedabad city civil court, MICT has now moved the high court.
MPSEZ further claimed that they had signed a non-compete clause with P&O Ports. “Now DP World took over P&O, without prior consent of Gujarat Maritime Board and the Adani group, making it a clear violation under the sub-concession agreement between us and P&O Ports,” said the official. As far as Dholera Port is concerned, he said Dholera Port & SEZ (DPSEZ) is a separate group company, and that the non-compete clause is not applicable.
Via ET
US Market plunges
Wall Street plunged on Thursday, pulling the Dow Jones industrial average down more than 360 points as investors found themselves confronted by two uncomfortable prospects: an end to interest rate cuts and a slowing economy.
Mindful of a warning from the Federal Reserve Wednesday about inflation, the market nervously watched the price of oil, which passed $96 a barrel overnight for the first time before dipping on profit-taking. The Fed, which cut interest rates a quarter point, said in a statement that inflation remained a concern, and oil's ascent to another record raised the possibility not only that the Fed might stop cutting rates, but that it might even consider raising them if inflation accelerates.
Meanwhile, Wall Street also had to contend with concerns about a slowing economy. A report from the Commerce Department indicated consumers scaled back their spending in September as worries mounted about a worsening housing market and further credit market turmoil. And a trade group reported that manufacturing in the US grew in October at the weakest pace since March.
The combination of factors led investors to pull back sharply from Wednesday's rally, in which the Dow climbed 137 points after the Fed said the economy had weathered the summer's credit crisis. ``Wall Street is in love with the idea of a rate cut, and realized that the Fed said inflation is still a concern _ that lowered the chances of a cut in December,'' said Ryan Detrick, a senior technical strategist with Schaeffer's Investment Research. ``We're now feeling the pain now that investors have slept on it, and figured out what they said.''
Christopher Cordaro, chief investment officer at RegentAtlantic Capital, said Wall Street remains anxious about the possibility of recession. He also believes the market is devoid of enough positive news ``to have any type of sustained rally.'' Investors were unswayed when the Fed pumped $41 billion (euro28.4 billion) into the US financial system, one of its largest cash infusions since the credit crisis began in the summer. This increases the amount of money banks have to lend, and helps improve liquidity. In the past, such an action helped soothe the market, but that was not the case Thursday.
With the market growing pessimistic about the economy, the Labor Department's report on October jobs creation, scheduled to be released Friday morning, will be taking on even more importance than it usually has. The data is expected to show unemployment remained steady in October, with payroll growth of 85,000 new jobs, compared with 110,000 in September.
The Dow fell 362.14, or 2.60 per cent, to 13,567.87. The Standard & Poor's 500 index was off 40.94, or 2.64 per cent, at 1,508.44, while the Nasdaq composite index dropped 64.29, or 2.25 per cent, to 2,794.83.
Big late-session moves became common on Wall Street during the summer. Investors remain hopeful that a down market will turn around, but tend to launch a late afternoon selloff if that doesn't happen.
``We've been getting all these mixed signals, and this is just a confluence of bad news between the Fed, the financials, and this mixed earnings season,'' said Chris Johnson, president of Johnson Research Group.
Financial stocks were pummeled after Citigroup Inc and Bank of America Corp, the two biggest US banks, were downgraded by CIBC World Markets on worries about the credit markets.
Investors pulling money out of stocks turned to the safe haven of the Treasury market. The yield on the 10-year Treasury note dropped to 4.34 per cent from 4.47 per cent late Wednesday.
Crude prices vaulted above $96 per barrel in overnight trading. A barrel of light sweet crude settled down $1.04 at $93.49 on the New York Mercantile Exchange.
The Commerce Department's report that consumer spending rose by 0.3 per cent in September, slightly lower than the 0.4 percent increase that analysts expected, raised concerns about a slowing economy.
Religare Enterprises IPO Subscription
Qualified Institutional Buyers (QIBs) - 184.9493 times
Non Institutional Investors - 215.4472 times
Retail Individual Investors (RIIs) - 93.5018 times
OVERALL - 160.56 times
It's becoming pointless to apply for these IPOs - Good Luck to all who have applied
Nifty November futures at discount
Turnover surges
Nifty November 2007 futures were at 5821.30, at a discount of 45.15 points as compared to spot closing of 5866.45.
NSE’s futures & options (F&O) segment turnover was Rs 99,734.02 crore, which was lower than Rs 71,090.73 crore on Wednesday, 31 October 2007.
Reliance Natural Resources November 2007 futures were at premium, at 130.50, compared to the spot closing of Rs 129.90.
Larsen & Toubro November 2007 futures were at discount, at 4379.90, compared to the spot closing of Rs 4424.25.
In the cash market, the S&P CNX Nifty lost 34.20 points or 0.58% at 5866.45. Nifty hit a life time high of 6011.95 points in intra-day trade.
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