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Friday, November 16, 2007
FIIs net sellers of Rs 363cr in cash market
Foreign institutional investors (FIIs) were net sellers of Rs 363.14 crore (provisional) today, according to data released by BSE.
While FIIs made gross purchases of Rs 3,503.69 crore, gross sales totalled Rs 3,866.83 crore.
Domestic institutional investors (DIIs) were net buyers of Rs 239.72 crore today. While DIIs made gross purchases of Rs 1,195.58 crore, gross sales totalled Rs 955.86 crore.
FIIs were net buyers of Rs 788.40 crore on Thursday, November 15, according to data released by Sebi today. While FIIs made gross purchases of Rs 4,464.30 crore, gross sales totalled Rs 3,675.90 crore.
Jyothi Lab, Kolte Patil, Kaushalya Infra , Renaissance Grey Market Premiums
Reliance Power -- 65 to 68
Mundra Port & Sez 400 to 440 520 to 525
Empee Distilleries 350 to 400 40 to 45
Edelweiss 725 to 825 800 to 810
Varun Ind. 60 40 to 50
Religare Enterprises 185 300 to 310
Barak Valley Cement 37 to 42 20 to 25
Rathi Bars 35 +/- 2
Allied Computers 12 14 to 16
SVPCL 40 to 45 +/- 1.5 to 2
Renaissance Jewellery 125 to 150 35 to 40
Kolte Patil 125 to 145 130 to 135
Kaushalya Infra 50 to 60 8 to 10
Jyothi Labo 620 to 690 400 to 425
Post Market Commentary
After a lot of volatility in today''s trading session, the market finally closed on a sad note as BSE Sensex fell by 86.53 points to closed at 19,698.36 and NSE Nifty dropped by 5.25 points to closed at 5,906.85. Though the market opened with a huge gap down but immediately gained the momentum to pare all its initial losses due to buying across the sectoral indices scrips. Both the Sensex and Nifty keeps on moving ups and down throughout the trading session as the global markets are not in favor. Most of the indices closed in red while Oil and gas, FMCG, Auto and CD attract investor''s confidence as they are closed in green. Overall, the market breadth was strong as 1,909 stocks are closed in green while only 912 are closed in red. Both the BSE Small cap and Mid cap closed higher by 98.29 point and 153.07 points at 8,512.38 and 10,380.73 respectively.
BSE oil & gas index surged by 163.68 points to close at 12,479.56. Pushing it up are Essar oil by (22.01%), HPCL (5.55%), IOCL (3.72%), BPCL (1.79%), RPL by (1.04%) closed higher.
BSE FMCG index grew by 92.07 points to close at 2,230.69. Leading the rally are ITC (8.17%), Tata tea (4.24%), Dabur (3.66%) and Nestle (2.77%) closed higher.
BSE Metal index declined by 241.69 points to closed at 17,498.20 as Hindalco (5.52%), Welspun Gujarat (4.13%), Nalco (2.96%), Tata steel (2.02%) closed lower.
BSE Capital goods index closed lower by 262.16 points at 20,643.71 as Lakshmi machine (3.01%), L&T (2.88%), Thermax (1.41%)closed in red.
BSE Power index fell by 21.97 points to close at 4,591.97. Pulling it down are CESC ltd by (4.15%), Areva by (2.57%), NTPC (1.89%), Reliance energy by (1.53%) and BHEL (1.30%) closed lower.
BSE bankex index fell by 49.97 points to close at 11,003.05. Pulling it down are ICICI bank (2.33%), HDFC bank (0.71%), BOI (0.48%) and Union bank (0.32%) closed in negative.
BSE IT index dropped by 37.37 points to close at 4,159.12 as Infosys (1.79%), HCL tech (1.52%), Tech Mahindra (0.83%) closed in red.
Weekly Close: India unplugged in Global Turmoil.
A week of mid cap mania. Heavy weight's saw some consolidation. Global markets saw turmoil with subprime worries and this time Indian market decoupled from global market ..anyways the recovery was strong. Mid caps bounced back and was a smart rally which has good participation. Looking at the political side, Left gave a nod to talk for nuke deal with IAEA which powered the power counters. The winter session of parliament started today and nuke topic will come to hearing on Nov 27 and 29th, this did bring some jitters in the market. However, the talks are still with IAEA the probability of consent for nuke deal has increased. IIP data was not encouraging and was blamed on strong Rupee. The week was driven partially by global cues and there is nothing much to discuss about.
Sensex and Nifty ended up by 4%. Midcap Index up 8%. BSE Small cap up 6%. BSE FMCG up 11%. Bank index up 8%. Oil andGas up 7%. Cap goods up 5%. Metals 4%. Tech stocks continues to drag?IT index down 1%. In large caps OBC +15%, PNB and Siemens +14%, suzlon HDFC, ICICI bank, HDFC Bank +10%; Nalco, Grasim up 9%, Suzlon, HDFC and CICI bank up 7%, Essar Oil +150%, KEC Infra up +66%, Chambal fert up 52%.Bongaigaon Ref up 48%, Utam Galva up 42%, RCF, Nag fert up 40%; BPCL up 23%, ITC up 22%, HPCL up 19% Hotel Leela up 36%, Neyveli and McLeod up 30%. Oswal Chem up 29%. Ispat and Chennai Petro up 27%. Induslnd bank 24%.
IT was weak and for now we don?t see any major action here. The two major factor influencing the business that is demand side (US market) and Rupee are not in favour of the industry. Fertiliser sector saw some fertility as Govt. issued bonds worth Rs.7500crs. However, this bond won?t help fertiliser much. There needs to some major policy change for fertiliser stocks to perform. Telecom was hit on spectrum and portability policy front. FMCG stands to be defensive play in weak market. ITC was the biggest gainer?but our pick is Britannia here.
Economy: Slowing ?
IIP (index of industrial production) decelerated sharply to 6.4% for September 2007 from 12% last year. This was largely driven by a drop in manufacturing (79% weight) to 6.6% in September 2007 from 12.7% last year and electricity (10% weigh). Sectors performing poorly were : rubber, plastic, petroleum and coal products; and machinery and equipment. Consumer goods saw negative growth of 0.6% because of sharply contracting consumer goods. However, the festival season last year was a month prior and that could be a base effect.
All in all the things were not good. October IIP growth may come in better on the back of the base effect. Oct 06 IIP was very low and it had the base effect of the festival season too. Provisionally indicated at 6.2% for October 2006 it was placed at less than 5% for the final figures.
Is there a case getting read for a rate cut ?. Growth is slowing and FII flows are a trickle. Inflation now certainly is at levels where the RBI will be very comfortable. Inflation came in low. An appreciating Rupee, suppressed fuel prices and a high base are the reasons for the same. Its another matter that no one believes the same. CPI (consumer price inflation) at 6.4% flies in the face of the RBI. We believe that the RBI would be inclined to cut rates but it would delay till its convinced that the slower growth is structural in nature.
The bad news continued to bog the Telecom sector. The Government decided to auction spectrum for third generation (3G) mobile services and wireless broadband services through technologies such as Wi-Max. The auction will be open to new companies wanting to foray into the telecom sector as well as established foreign telecom players. The existing operators had wanted the auction for 3G services to be limited to the license holders. Mobile Number Portability is finally here. The Government has decided to introduce this system in phases, starting with the four metros by fourth quarter of 2008. How much extra revenues it will generate is not clear.. but it certainly means that the networks would need to invest heavily to offer the services not to be left behind in a competitivce environment.
Clearly Reliance Communication is on the winning side for now. 3G services for CDMA dont seem to require high spectrum and thus their costs will be lower. Rel com also faces the least threat in number portability as we guess that this would be restricted to competition only from Tata Teleservices. Also having got entry into GSM it would be able to attract subscribers from competing networks on the number portability platform. On the face of it Bharti and Idea will be big losers.
For now power counter seems to be on everyones mind. Lots of orders announced and many are in pipeline. Power Grid announced a tender worth Rs.6,000 crore for the first phase of a high-voltage direct current lines. The project when complete will help move 46,000 MW of power will require an investment of Rs 46,000 crore,... It will add to transmission capacity that can move power from the North-Eastern part of the country and Bhutan to other parts where it is needed. Power Grid currently owns and operates 61,875km of transmission lines and transmits around 45% of the power generated in the country. India?s total transmission capacity of 16,500MW is not sufficient to handle the 78,570MW of additional power that the government wants to generate over the next five years. As per plans a national power transmission grid has been planned to more than double the transmission capacity in the country to 37,150 MW by 2012. The companies here to benefit will be the transformer companies, Crompton, Voltamp, Indotech. On the tranmission tower business there is Jyoti Structures, Kalpataru, KEC. On the Transmission lines there is Apar, Sterlite and Diamond cables.
Tea is also getting hot. Mcleod Russel is one of the largest producers in the world of the worlds cheapest beverage. It has over 35000 hectares under tea with 75 mn kgs production annually. It targets to have 100 mn kgs in the next couple of years. This can happen only through the inorganic route. Tea prices have been stable to positive this year so far. The worries of excess production in Kenya on the back of previous years drought has kept this as an underperformer. There are large tracts of land which will have its own story once the region loses the naxalite worries. Tea is a commodity whose prices are determined with many variables. Local production, weather conditions in Kenya, and more importantly economic conditions in countries like, Russia, Pakistan, UK, US. Jayshree Tea is another company with 20 mn kgs capacity and also having phosphatic fertilisers. In tea there is a possibility that we are at the bottom of the cycle. Will we start moving up or will it be a perennial wait is anyones guess. We are inclined to have tea for now.
Eveready finally took off. The company was really hit badly since it hiked the battery prices to offset high zinc prices. Major sales happen in rural area and this market declined to accept the price hike. As a results sales went for toss and company suffer badly. But, now the off take is small batteries (AA and AAA) has increased and Zinc has also come down to 2500 per tonne. Results were good for the quarter and worst is over here now ! Our note will follow here soon.
Sensex has failed to cross back above 20000 this week, yet in the previous week, we had talked about the significance of the level 19350 and as long as the Sensex holds above this, the market remains a buy on dips. Some value based buying is seen in select pharma and fmcg stocks, traders should look for opportunities here.
Market drops 87 points on weak global cues
The market remained flat to subdued today on the back of weak global cues, but fared better than the Asian markets. After yesterday's loss of 144 points, the Sensex resumed 182 points lower at 19,603 but recovered by mid-morning trades. The major contributors to this recovery were PSU oil refineries and oil marketing companies, which flared up on expectation of better gross refinery margins in the future. However, selling in select frontline stocks saw the Sensex zigzag between positive and negative territory for the better part of the day. The Sensex finally wrapped up the session at 19,698, down 87 points, while the Nifty shed five points and closed at 5,907.
The market breadth was positive. Of the 2,865 stocks traded on the Bombay Stock Exchange (BSE) 1,909 stocks advanced, 912 stocks declined and 44 stocks ended unchanged. Among the sectoral indices the BSE FMCG index flared up by 4.31%, the BSE CD index surged 2.61%, the BSE Oil & Gas index added 1.33% and the BSE Auto index gained 0.66%. Other sectoral indices were down around 0.5-1% each.
Among the Sensex stocks ITC shot up by 8.17% at Rs205. Among the other gainers, Grasim advanced by 5.87% at Rs3,831, Dr Reddy's Lab moved up by 3.39% at Rs620, M&M added 1.88% at Rs733, Maruti Suzuki scaled up by 1.35% at Rs1,049 and Bharti Airtel jumped 1.28% at Rs912. Select index stocks witnessed selling pressure. Hindalco was the major loser and dropped 5.52% at Rs204, L&T slipped 2.88% at Rs4,376, Ranbaxy was down 2.82% at Rs412, and ICICI Bank fell by 2.33% at Rs1,219.
FMCG stocks witnessed buying support. Tata Tea scaled up by 4.24% at Rs796, Dabur India jumped by 3.66% at Rs110, Godrej Consumers added 3.02% at Rs133, Nestle gained 2.77% at Rs1,376 and Bata India was up 2.43% at Rs231.
Over 3.37 crore Essar Oil shares changed hands on the BSE followed by Nagarjuna Fertilisers (2.43 crore shares), Facor Steel (1.80 crore shares), Essar Steel (1.74 crore shares) and Manglore Refinery (1.73 crore shares).
Essar Oil was the most actively traded counter on the BSE and registered a turnover of Rs635 crore followed by Reliance Petroleum (Rs346 crore), Manglore Refinery (Rs236 crore), Reliance Natural Resources (Rs213 crore), and Nagrjuna Fertilisers (Rs193 crore).
Market may remain choppy
The outcome of the government-Left front meet on nuclear deal scheduled on Friday, 16 November 2007 will dictate the trend on the bourses on Monday, 19 November 2007. The market has been volatile over the past few days on concerns over the impact of the US sub-prime mortgage problems on the US economy. These concerns may continue to cast their shadow on the markets in the weeks to come.
On the flip side, foreign institutional buyers are showing the signs of renewed buying.
Under mounting pressure from the Left parties to clarify its stand on the Indo-US nuclear deal, the government on, 22 October 2007, said the operationalisation of the deal will take place in accordance with the United Progressive Alliance (UPA)-Left joint committee’s recommendations.
The Indo-US nuclear deal will be discussed in the Lok Sabha at a later date on 27 November 2007. Acoording to Parliamentary affairs minister Priyaranjan Dasmunsi the government has also proposed discussion in the Rajya Sabha on 28 November 2007. Earlier the dates fixed were 16 November 2007 for the Lok Sabha and 17 November 2007 for Rajya Sabha.
Sensex surged 790.76 points or 4.18% to 19,698.36 in the week ending 16 November 2007. S&P CNX Nifty rose 243.6 points or 4.3% to 5,906.85 in the week.
At current 19,698.36, Sensex trades at a PE multiple of 18.76 to 19.69 based on projected FY 2009 EPS of Rs 1000-to-Rs 1050 for 30 Sensex companies.
India's wholesale price index rose 3.11% in the 12 months to 3 November 2007, above the previous week's rise of 2.97%, government data released today afternoon showed. The annual inflation rate was 5.45% during the corresponding week of the previous year.
Foreign institutional investors (FIIs) resumed buying in the equities after being heavy sellers initially in the month. They bought shares worth net Rs 788.40 crore on Thursday, 15 November 2007, compared to their buying of Rs 952 crore on Wednesday, 14 November 2007.
The Q2 September 2007 results of India Inc. were decent to strong which means that strong fundamentals would support Indian equities at declines. At the macro level, the India’s economy is expected to post decent to strong growth for a long period of time, mainly due to favourable demographics.
Sensex soars 791 points
Disappointing industrial production data for September 2007 pulled down the markets at the start the week. But the market rebounded with a bang later on easing political worries. Market later pared gains on profit bookings and as the US sub-prime mortgage crisis continued to haunt global equity markets. Market gained in 2 out of 5 trading sessions till Friday, 16 November 2007.
Sensex surged 790.76 points or 4.18% to 19,698.36 in the week ended Friday, 16 November 2007. S&P CNX Nifty rose 243.6 points or 4.3% to 5,906.85 in the week.
The BSE Small Cap index rose 623.85 points or 6.39% to 10,380.73. BSE Mid Cap advanced 498.75 points or 6.22% to 8,512.38.
BSE Auto index (up 1.47% to 5,284.01), BSE IT (down 2.21% to 4,159.12), BSE Metal index (up 3.76% to 17,498.20) and BSE Realty (up 4.07% to 10,521.84) underperformed Sensex.
BSE Bankex (up 7.74% to 11,003.05), BSE Capital Goods index (up 5.02% to 20,643.71), BSE Power index (up 4.66% to 4,591.97) and BSE Oil & Gas (up 7.26% to 12,479.56) outperformed Sensex.
The BSE Sensex ended down 170.33 points or 0.90% to 18,737.27 on Monday, 12 November 2007. Disappointing industrial production data for September 2007 and weak global markets weighed on sentiments. Realty, IT and oil & gas stocks were major contributors in decline. FMCG, power and PSU stocks ended higher.
The 30-share BSE Sensex rose 298.21 points or 1.59% to 19,035.48 on Tuesday, 13 November 2007. The market surged on value buying after a sustained slide over the past six days in a row. Reports that the Left front may allow the government to negotiate safeguards for a civilian nuclear agreement with the US, aided the surge. Volatility was high throughout the trading session. Infosys edged lower, in volatile trade. Banking, capital goods and power stocks edged higher.
The 30-share BSE Sensex ended up 893.58 points or 4.69% to 19,929.06 on Wednesday, 14 November 2007. Sensex registered its biggest intra-day absolute gains on the back of strong global cues and huge gains in index heavyweights Reliance Industries and ICICI Bank. Banking, oil & gas, IT and metal stocks were star performers. The market spurted as worries about the US credit crisis eased after several top US executives reassured investors that the US banking system could withstand shocks from credit-related losses.
The 30-share BSE Sensex lost 144.17 points or 0.72% to 19,784.89 on Thursday, 15 November 2007. The market sentiment was cautious due to persistent worry that more fallout from the US housing downturn and US credit crunch lies ahead, as stocks dropped across Asia. Weakness in banking, IT and power stocks pulled the Sensex down 205.86 points for the day at one point of time in the day to a low of 19,723.20.
The 30-share BSE Sensex ended down 86.53 points or 0.44% at 19,698.36 on Friday, 16 November 2007. Market swayed between gains and losses throughout the trading session. Banking and power stocks declined. Cement and consumer durables stocks were in demand. ITC surged.
ITC rose 21.46% to Rs 205.15 in the week on reports that it has approached Parle Products to buy out the latter’s confectionery business.
Reliance Communications lost 0.25% to Rs 707.80 in the week on reports it has submitted a bid for 51% stake in Kenya's state-run telecom giant Telkom Kenya.
Reliance Industries rose 5.12% to Rs 2,875.70 in the week after it executed two production sharing contracts covering petroleum exploration activities in the Kurdistan region of Iraq. Further, its wholly owned subsidiary signed a production sharing agreement with the government of Oman for offshore block number 41 in Oman.
State bank of India rose 7.54% to Rs 2,325.60 in the week on reports that the Union Cabinet is likely to take a call by 22 November 2007 regarding the bank’s proposed plan to raise about Rs 18,000 crore through a rights issue.
Reliance Energy declined 0.67% to Rs 1,825.70 on BSE, on reports its subsidiary Reliance Power is close to bag a 4,000-mega watts Krishnapatnam ultra mega power project in Andhra Pradesh.
India's biggest power generation firm by revenue National Thermal Power Corporation (NTPC) jumped 9.51% to Rs 264.30. As per reports, it is one of the bidders who have submitted bids for setting up the 4,000 mega watt Tilaiya ultra mega power project in Jharkhand.
India's largest cellular service provider by market share Bharti Airtel rose 4.71% to Rs 911.60. Bharti added 2.03 million subscribers in October 2007 against 2.06 million additions in September 2007, taking its total mobile user base to 50.9 million. Meanwhile, Bharti's chairman Sunil Mittal on Wednesday, 14 November 2007, said he favours mobile number portability across the country and not just in the four big metro cities.
India’s largest dedicated housing finance company by revenue Housing Development Finance Corporation (HDFC) was up 7% to Rs 2,700 on reports that the company has received a premium commitment of Rs 170 crore from German insurer Ergo for the latter’s 26% stake in its non-life insurance company.
India’s biggest software exporter TCS edged lower 0.33% to Rs 982.20. The company said on Thursday, 15 November 2007 that it won a four-year outsourcing deal from Social Security Institute of Mexico worth more than $200 million.
Tata Steel gained 1.1% to Rs 843.20. The company is raising Rs 9135 crore from a rights issue of equity shares and convertible preference shares. The rights issue of equity shares is in the ratio of 1:5, priced at Rs 300 per share. The issue opens on 22 November 2007 and closes on 21 December 2007.
Larsen & Toubro soared 5.98% to Rs 4,375.85 after its consortium won an order worth Rs 580 crore from state-run Steel Authority of India to rebuild one of its blast furnaces.
HDFC Bank (up 9.68% to Rs 1,687.15) and ICICI Bank (up 6.69% to Rs 1,219.45) also gained among the Sensex pack.
US Futures Exchange (USFE) has entered into an exclusive licensing agreement with Bombay Stock Exchange (BSE) to list the dollar-denominated Sensex futures on the former, which will allow US investors to directly trade in India’s equity market.
The Index of Industrial Production (IIP) rose 6.4% in September 2007 compared to 12% growth in September 2006. IIP growth was 9.2% in April-September 2007 compared with 11.1% growth in April-September 2006.
The government on Tuesday, 13 November 2007 estimated India’s growth to be 8.5% in FY 2008 as its macro-economic fundamentals were favourable for a sustained, rapid and more inclusive economic growth.
Finance Minister P Chidambaram, in Economic Editors’ Conference in New Delhi (Tuesday, 13 November 2007), cautioned that the pressures on consumer prices continued due to rising international oil, food and commodity prices. The sharp deceleration in the consumer goods segment has pulled down the overall industrial output.
Agriculture Minister Sharad Pawar, in a news conference on Tuesday (13 November 2007), said the government had no plans to change import duties on edible oils.
Six core infrastructure industries edged up 6% in September 2007 as against 10.6% in September 2006. The growth rate slowed down 6.6% in April-September 2007 from 8.7% in in April-September 2006.
The government on Wednesday (14 November 2007) ruled out any immediate hike in retail prices of petrol and diesel saying global crude oil prices will first need to stabilise before a decision is taken.
The Left has permitted the United Progressive Alliance (UPA) coalition government to speak to the International Atomic Energy Association (IAEA). However, Left wants its prior approval before signing the safeguards. The UPA-Left panel on the nuclear deal is scheduled to meet on 16 November 2007.
The board of Securities & Exchange Board of India (Sebi) on 14 November 2007, approved launch of a number of new derivative products to provide investors a wide range of risk mitigation products and create more activity in the onshore market. The products will relate to mini-contracts on equity indices, options with longer life, volatility index and F&O contracts, options on futures, bond indices and F&O contracts, foreign exchange F&O and introduction of exchange-traded products.
Trade Minister Kamal Nath in the sidelines of a conference held in New Delhi on Wednesday (14 November 2007) expressed hope that manufacturing growth would revive in the coming months. According to the minister, sluggish growth of 6.4% in industrial output in September 2007 over September 2006 was due to a weaker dollar.
The Centre’s excise duty collections rose 14% at Rs 10293 crore in October 2007 from Rs 9066 crore in October 2006. Customs duty collections jumped 25% at Rs 9353 crore in October 2007 as against Rs 7503 crore in October 2006.
Annual inflation, based on the wholesale price index (WPI), moved up 3.11% in the week ended 3 November 2007 compared to a rise 2.97% in the week ended 27 October 2007. The market estimate was 2.97%. The annual inflation rate was 5.45% in the corresponding week of the previous year.
The Indo-US nuclear deal will be discussed in the Lok Sabha on 27 November 2007. Acoording to Parliamentary affairs minister Priyaranjan Dasmunsi the government has also proposed discussion in the Rajya Sabha on 28 November 2007. Earlier the dates fixed were 16 November 2007 for the Lok Sabha and 17 November 2007 for Rajya Sabha.
Small-cap, mid-cap stocks hog limelight
Market swayed between gains and losses throughout the trading session. The highlight of today's trading was rally in a host of small-cap and mid-cap stocks. The market breadth was strong.
Banking and power stocks declined. Cement and consumer durables stocks were in demand. ITC surged. IT stocks recovered from day's lows. Hindalco Industries and Larsen & Toubro declined sharply in late trade.
The 30-share BSE Sensex ended down 86.53 points or 0.44% at 19,698.36. Sensex hit a high of 19,838.03 in afternoon trade. At day's high, Sensex had risen 53.14 points. Sensex had lost as much as 312.38 points in early trade to a low of 19,472.51.
The broader CNX S&P Nifty ended down 5.25 points or 0.09% at 5906.85.
India's wholesale price index rose 3.11% in the 12 months to 3 November 2007, above the previous week's rise of 2.97%, government data released today afternoon showed. The annual inflation rate was 5.45% during the corresponding week of the previous year.
The market had opened lower today extending Thursday (15 November 2007)’s losses on worries that credit losses from US mortgage defaults and slumping US home prices would grow worse, hurting US economy and US corporate profits. It had bounced back from lower level after initial sharp fall.
Chief Executive John Stumpf of Wells Fargo & Co, the No. 2 US mortgage lender, told a conference on Thursday, 15 November 2007, that the US housing slump was far from over and was the worst since the Great Depression. Stocks declined across Asia and Europe due to concerns about US economy.
The market has been volatile in recent sessions, caught between jitters about the US housing problems and optimism about India’s economic outlook.
BSE clocked a turnover of Rs 8854 crore compared to Thursday (15 November 2007)'s Rs 9,268.18 crore.
The NSE futures & options (F&O) turnover was at Rs 61505.32 crore compared to Thursday (15 November 2007)'s Rs 65894.61 crore.
The Nifty November 2007 futures were at 5906.00, a premium of 0.85 points over spot closing of 5906.85.
The market breadth was strong. On BSE, 1909 stocks advanced, while 912 stocks declined and 44 stocks were unchanged. 15 out of 30 stocks from the Sensex pack were in the red.
The BSE Mid-Cap index rose 1.17% to 8,512.38 and the BSE Small-Cap index rose 1.50% to 10,380.73. For the second day in a row, these two indices outperformed Sensex.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) moved up 0.14% to 2875.70.
India’s largest cigarette maker ITC jumped 8.17% to Rs 205.15. The stock has been rising ever since Citigroup came out with a buy rating on the stock recently, with a target price of Rs 215.
India’s top drug maker by market share Ranbaxy Laboratories declined 2.82% to Rs 411.70 after the drugmaker said it was recalling 600 mili gram (mg) and 800 mg tablets of its gabapentin drug from the US retail market.
Software stocks recovered after an initial decline. The BSE IT index fell 0.89% to 4,159.12, led by decline in Infosys Technologies. It underperformed the Sensex. Wipro rose 0.41% to Rs 458.30 and TCS moved up 0.34% to Rs 982.20.
Satyam Computers fell 0.07% to Rs 428.55, off sessions low of Rs 415.15 and Infosys Technologies declined 1.79% to Rs 1623.50, off sessions low of 1616. Indian IT firms rely on US market for more than 50% of their revenue. IT stocks had come under renewed selling pressure over the past few days due to concerns about the US economy.
The BSE Bankex fell 0.45% to 11,003.05. It underperformed the Sensex. ICICI Bank, India's largest private sector bank by assets, fell 2.33% to Rs 1219.45, off session's low of Rs 1201.25.
India’s largest commercial bank State bank of India moved up 0.76% to Rs 2325.60, off session’s low of Rs 2270. The stock recovered on hopes the government would soon approve its right issue. SBI, 59.73% owned by the government, said last month it was planning to raise Rs 18000 crore by selling new equity around the end of 2007. On Wednesday, 14 November 2007, Finance Minister P Chidambaram said there was a strong case for the rights issue.
India’s largest private sector bank by net profits HDFC Bank fell 0.71% to Rs 1687.15.
India's top mobile firm by market share Bharti Airtel moved up 1.28% to Rs 911.60 on reports that the company is not concerned about a drop in minutes of usage seen in the fiscal second quarter as new costumer additions are picking up well.
The BSE Metal index fell 1.36% to 17,498.20. It underperformed the Sensex. Hindalco Industries declined 5.42% to Rs 204, Tata Steel declined 2.02% to Rs 843.20 and Steel Authority of India (Sail) fell 1.50% to Rs 262.30. National Aluminium Company lost 2% to Rs 413.
Sterlite Industries moved up 1.14% to Rs 1019.20 and Sesa Goa gained 0.70% to Rs 3736.90.
Steel firm Essar Steel slumped 12.97% to Rs 51 after the company clarified that it has applied to BSE and NSE for delisting of the equity shares. The delisting price has been set at Rs 48.
The BSE Capital Goods index fell 1.25% to 20,643.71. It underperformed the Sensex. Larsen & Toubro slipped 2.88% to Rs 4375.85, Bharat Heavy Electricals (Bhel) fell 1.30% to Rs 2786.55 and BEML dropped 1.22% to Rs 1745.
Jaiprakash Associates gained 0.54% to Rs 1520.55 on reports that Formula 1 supremo Bernie Ecclestone has reportedly signed a 10-year contract with JPSK sports, a subsidiary Jaiprakash Associates to build the track in Greater Noida. He has expressed confidence that formula one sport would gain interest among sports enthusiast in India in coming years.
The BSE Power index fell 0.48% to 4,591.97. CESC slipped 4.15% to Rs 630.90, Areva T&D skid 2.57% to Rs 3037.25, NTPC dropped 1.89% to Rs 264.30, Reliance Energy fell 1.53% to Rs 1825.70 and Power Grid Corporation of India fell 0.67% to Rs 155.75.
Torrent Power rose 2.69% to Rs 198.30 and Tata Power moved up 0.53% to Rs 1252.15.
The BSE Consumer Goods index jumped 2.61% to 5,202.06 led by gains in Videocon Industries. It outperformed the Sensex. Videocon jumped 14.72% to Rs 402.10.
Titan Industries fell 0.25% to Rs 1517.25, Blue Star fell 0.58% to Rs 420.25, Asian star Company fell 2.115 to Rs 1290.30 and Lloyd Electric and Engineering dropped 3.31% to Rs 168.
Shares of the state-owned oil refineries and oil marketing companies rose on expectation of better gross refinery margins in the future. The BSE Oil & Gas index moved up 1.33% to 12,479.56. It outperformed the Sensex. HPCL moved up 5.55% to Rs 316.50, BPCL rose 1.79% to Rs 434.65, Indian Oil Corporation gained 3.72% to Rs 618.15, Bongaigaon Refinery rose 0.24% to Rs 105.20.
Investors expect that increased demand for refined petroleum products in short to medium term will push the gross refinery margins higher, which are already at high levels. Closures of certain refineries in other countries will benefit Indian companies who are increasing their capacities.
State-run oil refiner, Mangalore Refinery and Petrochemicals (MRPL) rose 1.91% to Rs 130.40. As per reports UK's British Petroleum (BP) and Japanese trading firms have shown an interest in buying the entire paraxylene output of an aromatic unit planned by the company.
Private sector refiner Essar Oil extended rally. It surged 22.01% to Rs 192.35. The stock appreciated 137.78% to Rs 157.65 in the last one week to 15 November 2007. The board of directors of the company will meet today, 16 November 2007 to consider further issue of securities to promoters.
India’s top oil explorer by market capitalization ONGC moved up 0.39% to Rs 1245.65.
Cement stocks were in demand. J K Cements soared 3.02% to Rs 197.75, Grasim Industries jumped 5.87% to Rs 3831.45, JK Lakshmi Cements gained 2.90% to Rs 191.70, and Ambuja Cements gained 0.20% to Rs 147.15. ACC fell 0.45% to Rs 1039.65.
Jindal Photo was locked at upper limit of 10% at Rs 269 after it said it plans to set up a 600 mega watt power project in the first phase in Orissa, to be expanded to over 1,000 megawatt in the second phase.
Phillips Carbon Black was up 2.23% to Rs 215.90 on reports that the company plans to invest Rs 500 crore over 16 months, to boost capacity by 60%.
Southern Online Bio Technologies was up 2.61% to Rs 53.15 after its board approved raising up to Rs 50 crore for a bio-diesel unit in Visakhapatnam.
Prajay Engineers Syndicate rose 0.97% to Rs 329.30 after the company said Prajay Holdings a 100% subsidiary of the company has received a commitment of foreign direct investment to the tune of $36 million.
Goldstone Technologies rose 0.60% to Rs 200.70 after the company said it has signed an agreement with two companies for distributing its Internet protocol television services in Malaysia and Thailand.
IndusInd Bank surged 2.83%to Rs 112.70 after the private sector bank said that it has entered into a tie-up with Cholamandalam MS, General Insurance Company for banc assurance.
Among side counters, Hinduja TMT surged 28.64% to Rs 556.10, Chambal Fertilisers and Chemicals soared 28.26% to Rs 72.40, MIRC Electronics jumped 16.10% to Rs 29.20, Escorts moved up 14.64% to Rs 142.10 and HTMT Global rose 10.84% to Rs 515.90.
Essar Oil clocked the highest turnover of Rs 635.52 crore on BSE. Reliance Petroleum (Rs 346.25 crore), Manglore Refinery and Petrochemicals (Rs 236.28 crore), Reliance Natural Resources (Rs 213.05 crore) and Nagarjuna Fertilisers and Chemicals (Rs 193.51 crore), were the other turnover toppers on BSE in that order.
Essar Oil registered highest volume of 3.37 crore shares on BSE. Nagarjuna Fertilisers and Chemicals (2.43 crore shares), Facor Steels (1.80 crore shares), Essar Steels (1.74 crore steels) and Manglore Refinery and Petrochemicals (1.73 crore shares), were the other volume toppers on BSE in that order.
Major European indices – UK’s FTSE 100, Germany’s DAX and France’s CAC 40 – were down by between 0.51% to 0.63%.
Asian stocks sank today, 16 November 2007, tracking overnight fall in US stocks. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were down by between 1.05% to 3.95%.
US stocks nose-dived on Thursday, 15 November 2007, as investors grappled with concerns about the strength of consumer spending and the overall economy after downbeat comments from Wells Fargo & Co. and J.C. Penney Co. The Dow Jones industrial average slid 120.96 points, or 0.91%, to finish at 13,110.05. The Standard & Poor's 500 Index dropped 19.43 points, or 1.32%, to close at 1,451.15. The Nasdaq Composite Index fell 25.81 points, or 0.98%, to 2,618.51.
US crude for December delivery settled down 66 cents, or 0.7%, at $93.43 a barrel on the New York Mercantile Exchange on Thursday. The catalyst for the drop in oil prices was data showing a surprising increase in US crude inventories in the latest week.
Meanwhile, as per media reports, private equity firm Blackstone Group, is said to have a huge pipeline of deals in India.
Massive FII inflow had send the market surging in September 2007 and October 2007. FII inflow was a robust in those two months - at Rs 16132.60 crore in September 2007 and Rs 20590.90 crore in October 2007. FII inflow had surged as huge liquidity infused by a steep 50 basis points cut in Fed funds rates in mid-September 2007 found its way into emerging markets.
Trading Calls
Nifty (5912) Sup 5843 Res 5957
Buy NDTV (365) SL 360
Target 373, 375
Buy Nagarjuna Const (297) SL 292 Target 305, 307
Sell Tata Tea (764) SL 771 Target 751, 749
Sell M&M (719) SL 726
Target 706, 703
Sell Auro Pharma (526) SL 532 Target 515, 512
Earning season for no reason!
Love without reason lasts the longest.
The euphoria of Wednesday may have been forgotten on Thursday. Main indices may be down by it continues to be earning season for bulls on specific counters. Imagine the dream run refinery stocks had. Reasons are hard to find and we hate to speculate on what would have happened. But the action is hot outside the main indices, with small-cap and mid-cap indices on the BSE notching up gains of 1.9% and 1.6%, respectively.
Among the sectors, FMCG, Real Estate, Oil & Gas and PSU pack were in the limelight yesterday. The key indices finished in the red thanks largely to weakness in banking, IT and power stocks. Looks like the trend may continue in the near term with stock centric action dominating the scene. All we can say is be careful with quite a few stocks having witnessed a huge run-up without any significant change in fundamentals.
Plus, one has to bear in mind the mounting losses linked to the US housing sector and its fallout on the American economy and the world at large. Liquidity is drying up (though Wednesday's data shows a big improvement). Most of the positive factors are already reflected in the stock prices. The market has rallied sharply from end August. Hence, there is a likelihood that the current consolidation phase may continue for a while.
The direction of the market will hinge on a few key issues - the bad news coming from the US economy, trend in FII inflows, political developments in New Delhi and of course on local economic data. Today, we foresee a weak opening following a steep fall in US and Asian markets. At the same time, earnings will continue for some bulls somewhere.
Prajay Engineers says its wholly-owned subsidiary Prajay Holdings has received a commitment of FDI worth $36mn for one of its prime projects at Hyderabad.
Vishal Retail says it has opened four new showrooms. The Bombay High Court has approved the merger of Lok Shelters with Lok Housing.
Southern Online has decided to raise up to Rs500mn for setting up a second Biodiesel unit at Vizag with a capacity of 250 tons a day.
US stocks tumbled on Thursday, with financial, commodity and technology shares among the biggest losers on the back of lingering worries about the credit market crisis and weakening consumer confidence.
The Dow Jones Industrial Average fell 121 points, or 0.9%, to 13,110.05. The S&P 500 Index lost 19 points, or 1.3%, to 1,451.15. The Nasdaq Composite Index slipped 26 points, or 1%, to 2,618.51.
More than three stocks dropped for every one that rose on the New York Stock Exchange.
The fall in US stocks came after Wells Fargo said that the housing market is the worst since the Great Depression and investors speculated that Fannie Mae masked credit-market losses in its latest earnings report.
JC Penney led losses among the retailers after the third-biggest department-store chain reported a smaller profit and cut its earnings forecast. Citigroup shares slipped 4.1% after the biggest US bank sold $4bn of 10-year notes at the highest yield relative to benchmarks in its history.
The Federal Reserve injected roughly $6bn into the US banking system yesterday. The Fed accepted more than $20bn of mortgage-backed securities as collateral in the moves.
Barclays Capital, a unit of Barclays Group, said it took $2.7bn in writedowns related to the credit market. The figure was smaller than some analysts had been looking for a week ago. Additionally, the British bank said that 2007 profits are running ahead of last year's performance.
Swiss financial major UBS could take up to $7.1bn in writedowns related to the deteriorating mortgage market in the US, according to the Wall Street Journal. GE confirmed reports that a short-term bond fund it manages has suffered big losses in mortgage-backed securities.
US light crude oil for December delivery fell 66 cents to settle at $93.43 a barrel on the New York Mercantile Exchange after the weekly oil inventories report showed a surprise gain in crude supplies last week.
Treasury prices rose, lowering the yield on the 10-year note to 4.15% from 4.25% late on Wednesday. In currency trading, the dollar rebounded a bit against the euro and declined versus the yen. COMEX gold for December delivery fell $27.40 to $787.30 an ounce.
European shares closed sharply lower. The pan-European Dow Jones Stoxx 600 index slipped 1.3% to 365.82. The German DAX 30 lost 1.5% to 7,667.03, the French CAC-40 fell 0.9% to 5,561.13. The UK's FTSE 100 closed down 1.1% at 6,359.60.
In the emerging markets, the Bovespa in Brazil surged by 2.7% to 64,430 while the IPC index in Mexico dropped 1.6% to 29,170. The RTS index in Russia was down nearly 1.2% at 2217 and the ISE National-30 index in Turkey slid 1.9% to 69,494.
Asian markets were down anywhere between 1.5% to 3.5%, with Hang Seng in Hong Kong falling by over 1,000 points and the Nikkei in Tokyo down over 300 points. Regional exporters led the fall after the yen strengthened against the dollar.
Mizuho Financial Group and National Australia Bank dropped on concern that banks may report widening losses linked to US sub-prime mortgages. BHP Billiton climbed after its mines in Chile resumed production following an earthquake and the Wall Street Journal said Rio Tinto was considering a counter bid.
The Morgan Stanley Capital International Asia Pacific Index fell 1.6% to 158.74 as of 11:04 a.m. in Tokyo. All 10 industry groups dropped, with a group of financial stocks as the biggest contributor to the decline.
Stock benchmarks in other Asian markets open for trading fell, except in New Zealand.
Choppiness to prevail!
Markets ended weak ahead of the weekend as traders preferred booking some profits after yesterday’s 800 points rally. The focus was more upon the Mid-Cap and the Small-Cap stocks as they outperformed the major indices by gaining over 1.5% each.
Selling pressure was witnessed in the Banking, IT and select Power stocks. Among the heavyweights ICICI Bank, Infosys, HDFC Bank and Reliance Industries were the major losers. While, telecom major Bharti Airtel, ITC and L&T held the benchmark Sensex form a huge fall.
Finally, benchmark Sensex lost 144 points to close at 19,784. NSE Nifty closed 25 points lower at 5,912.
Refinery stocks were the star performers of the day. Post the sharp run up in the stock price of Reliance Petroleum, the valuation gap between the public sector refining companies (BPCL, HPCL. IOC, MRPL, BRPL and CPCL) had increased considerably. Rally in stock prices of the PSU refining companies, today could be an attempt to bridge the gap.
Bongaigaon Refinery sky rocketed by over 30% to close at Rs105, MRPL jumped over 22% to Rs128, BPCL was up 17% to Rs426 and Hindustan Petroleum surged 15% to Rs299.
Essar Oil
Fertilizer stocks were also in the limelight as the government announced its plans to issue Rs75bn worth of bonds to pay for compensation to be awarded to fertilizer makers after officials agreed to sell farmers growing agents at below- market prices. Nagarjuna Fertilizer rose over 8.5% to Rs71, RCF surged over 9% to Rs78 and Deepak Fertilizer was up 2.5% to Rs150.
Sugar stocks were on the receiving end after the
ACC gained 1% to Rs1055. According to reports the company decided to transfer the ready mix concrete business to its wholly owned subsidiary ACC Concrete for a consideration of ~Rs1bn. The scrip touched an intra-day high of Rs1087 and a low of Rs1036 and recorded volumes of over 2,00,000 shares on NSE.
Reliance Industries marginally slipped 0.5% to Rs2875. Reports stated that the company would buy two helicopters in December for its offshore work. The scrip touched an intra-day high of Rs2910 and a low of Rs2850 and recorded volumes of over 26,00,000 shares on NSE.
Bharti Airtel
DLF advanced 2% to Rs949 after reports stated that the Malaysia’s Columbia Asia Group of Hospitals to construct 100-bed multi-spatiality hospitals in DLF townships. The scrip has touched an intra-day high of Rs957 and a low of Rs927 and has recorded volumes of over 19,00,000 shares on NSE.
Stocks in News:
TCS wins a US$200mn four-year outsourcing deal from Social Security Institute of Mexico (IMSS).
Ranbaxy recalls 75mn tablets of 600mg and 800mg dosages of Gabapentin from the US.
RIL likely to face ban on future E&P contracts in Iraq due to signing of contracts with the Kurdish regional government.
Cairn India has submitted a declaration of commerciality for three discoveries in the northern appraisal area of Rajasthan block.
REL has been allocated two coal blocks in Orissa which would enable it to set up a pit-head 1,000MW power plant.
PTC India is likely to sell 40% of its financial services arm for Rs1.2bn to leading PE majors.
CESC to shortly initiate talks with the Jharkhand Govt for acquiring 1,000 acres in Dumka district for a 1,000MW thermal power station.
Lanco Infratech, GMR and Sterlite have bagged coal blocks in Orissa.
Dr Reddy’s anti-diabetes molecule Balaglitazone is expected to hit the world market by 2011.
ICICI Ventures is in discussion with Shalimar Paints for a likely buyout of the latter at around Rs4.5bn.
Icon Hospitality, a subsidiary of Royal Orchid Hotels has acquired Hotel Royal Orchid Central for Rs820mn.
SKF India aims to more than double its revenues over the next four years to Rs30bn. It has earmarked Rs4.2bn for building two new units.
Ashok Leyland has entered the 49-ton category with the launch of its new 4910TT truck.
Air India and Jet Airways lose market share in October on qoq basis to 17.6% and 21.5% respectively.
Kingfisher increases market share to 12.7%. SpiceJet, Indigo and GoAir have gained share over the previous month.
Pantaloon Retail plans to hive-off its sports business into a new entity, Planet Sports Retail.
Provogue India has picked up 51% in Pronet Interactive which is into developing social networking web sites.
Info Edge plans to expand in Middle East to hedge a likely slowdown in US clients' IT spending.
L&T launches tipper trucks in association with Swedish truck major Scania.
DLF Emporio, the country's first upcoming luxury mall in New Delhi will house 130 brands including 70 international brands.
Telecom Minister A Raja rules out the possibility of selling or auctioning 2G spectrum. He has reiterated the allotment of new telecom licenses based on first-come-first-serve policy.
DoT has allowed re-sale on international bandwidth which will lead to significant drop in bandwidth prices.
Peak power deficit hit 10-year high of 14.6% in April-October 2007.
The Government is planning to lay down standards for power equipment sets in an effort to facilitate faster execution of projects.
FII Investment Trend:
FIIs were net sellers of Rs1.53bn (provisional) in the cash segment on Thursday while the local institutions pumped in Rs5.86bn.
In the F&O segment, FIIs were net sellers of Rs30.87bn.
Foreign funds were net buyers of Rs9.52bn in the cash segment on Wednesday.
Mutual Funds were net buyers of Rs4.83bn on the same day.
Market likely to open lower
Key indices are likely to open lower on Friday, tracking weak global cues, but the rally in mid- and small-cap stocks is likely to continue.
“Large-cap stocks have already had a good run up. Compared with their peers in the mid-cap space, they are way too expensive for local investors,” said DD Sharma, senior vice president at AanadRathi Securities.
“Foreign investors are buyers in the large-cap space, but currently they are not buying aggressively. Now, local players - retail, institutional and HNIs - are driving the market,” Sharma said.
On Thursday, FIIs were net sellers of shares worth Rs 152.83 crore, while domestic institutions net bought Rs 585.82 crore equity (according to provisional data on NSE).
The Bombay Stock Exchange’s Sensex ended at 19,784.89, down 144 points or 0.72 per cent.
The National Stock Exchange’s Nifty finished 26 points or 0.43 per cent lower at 5912.1.
BSE Mid-cap Index added 1.55 per cent and CNX Mid-cap Index was up 2.17 per cent.
Several foreign institutions prefer to restrict their bets to frontline or the bigger mid-cap shares because of higher liquidity and perception of superior transparency in these companies. But, with valuations of many frontline shares discounting even the 2008-09 earnings, FIIs are unwilling to take fresh bets, especially in uncertain times like the current one.
US stocks intensified losses on Thursday as investors found dark spots in economic data and credit-related anxieties lingered. The labor department reported that first-time jobless claims last week jumped 20,000 to 339,000, more than had been expected. The Dow Jones Industrial Average finished 0.91 per cent lower, the Standards & Poors 500 Index was down 1.32 per cent and the Nasdaq Composite Index closed 0.98 per cent lower.
Asian stocks extended losses on Friday amid renewed worries about the health of the US economy as investors moved out of equity investment and into the relative safer government bonds. Japan’s Nikkei was down 1.60 per cent, the Hang Seng in Hong Kong was down 3.14 per cent and Singapore’s Straits Times lost 1.68 per cent.
Sentiment may also be subdued as investors back home await the government’s response on a set of questions regarding the IAEA safeguard talks at the UPA-Left committee meeting on the nuclear deal later today.
CPI (M) Politburo member Sitaram Yechury indicated to party MPs on Thursday that the Left will allow the Government to go to the IAEA, but there would be no change in its stand on the nuclear deal.
Market likely to remain volatile
The market may correct further for the second straight session on inflation worries and dwindling foreign fund inflows in domestic markets. Nervousness in the market is likely to continue after the Sensex reported losses in yesterday's trades. Weakness in the global indices could make the investors jittery from taking any fresh position. Among the key local indices, the Nifty could decline to 5780 or 5448 on the downside while on the upside there is a near term resistance at 6000. The Sensex has a likely support at 19500 and may face resistance at 20500.
US Indices tumbled on Thursday as investors continued to worry about the credit market crisis and the strength of the consumer despite dip in the oil prices. While the Dow Jones slipped 121 points to close at 13110, the Nasdaq lost 26 points to close at 2619.
Barring few, most of the Indian floats had a lost heavily on the US bourses. HDFC bank tumbled 4.24% and ICICI bank slipped 4.11% , while Tata Motors, Infosys, Satyam, Wipro and Rediff lost around 1-2% each. Among the gainers MTNL rose 3.5%, while Dr Reddy's, VSNL and Patni Computer were up by 1%.
The Nymex light crude oil for December delivery slipped by 66 cents to close at $93.43 a barrel. In the commodity space, the Comex gold for December series fell by $27.40 to settle at $787.30 a troy ounce.
Crude price eases
Crude prices close lower after Energy Department reports unexpected build up in crude inventories
Crude oil prices fell today, Thursday, 15 November, 2007 after the weekly inventory report by Energy Department reported that there was an unexpected build up in crude inventories for the week ended 9 November, 2007. Market was expecting a decline. Prices also fell after OPEC reduced its growth forecast for the global demand for oil.
For the day ending Thursday, 15 November, 2007, crude-oil futures for light sweet crude for December delivery closed at $93.43/barrel (lower by $0.66/barrel or 0.7%) on the New York Mercantile Exchange. Price fell to $92/barrel soon after the report was out.
Brent crude oil for December settlement fell $0.42 (0.5%) to $90.94 on the London-based ICE Futures Europe exchange.
As per the weekly inventory report by the Energy Department, U.S. crude inventories rose by 2.8 million barrels to 314.7 million in the week ending 9 November. This was the first build up in five weeks. U.S. refineries operated at 87.7% of their operable capacity last week, the highest in five weeks.
The report also stated that gasoline supplies rose by 700,000 barrels to 195 million barrels in the latest week, while distillate fuel stocks decreased by 2 million barrels to 133.4 million barrels.
Last week, prices rose to $98.62/barrel during intra day trading on 7 November, 2007. Oil prices had rose 16% in October, 2007, the biggest one-month gain since September 2004.
OPEC reduces fourth-quarter estimate of global oil demand estimate
Natural gas in New York fell after a government report showed that U.S. supplies will probably be sufficient to meet winter demand and crude oil declined. Gas for December delivery fell 13.5 cents (1.7%) to settle at $7.70 per million British thermal units.
The EIA reports also showed today that U.S. natural gas inventories fell 9 billion cubic feet to 3,536 billion cubic feet as of 9 November.
Against this backdrop, December reformulated gasoline fell 3.42 cents to $2.3362 a gallon and December heating oil dropped 1.47 cents at $2.5587 a gallon.
At the MCX, crude oil for November delivery closed at Rs 3640/barrel, lower by Rs 33 (0.9%) against previous day’s close. Natural gas closed at Rs 304.7/mmtbu as against previous close of Rs 311.3/mmtbu, lower by Rs 6.6/ mmtbu.
OPEC, today, reduced its fourth-quarter estimate of global oil demand growth to 1.97%, down from 2.1%, citing warmer winter weather in the Northern Hemisphere and the higher price of gasoline. The cartel also trimmed this year's world oil demand growth to 1.4% from 1.5%, but the cartel kept the first quarter of next year unchanged at 1.8%.
Earlier, the Paris-based IEA had cut its estimate for fourth-quarter demand by 500,000 barrels a day as record prices reduced energy consumption. The IEA also said next year's demand is forecast at 87.69 million barrels a day, or 300,000 barrels a day less than a previous estimate. It was due to higher prices and weaker-than-expected economic data from the U.S. and the former Soviet Union.
Attacks on oil facilities in Middle East and tight supplies from OPEC have bolstered crude prices this year. As per the U.S. Energy Information Administration, tight global energy supplies are expected to keep energy prices high through 2008.
Poll - In 3 months, market is heading towards
In a series of polls, we are trying to gauge the market sentiment for medium, short term and long term
Here are the results for
In 3 months, market is heading towards
> 20000 - 399 (63%
< 19000 - 130 (20%)
< 18000 - 103 (16%)
Total Number of Votes - 632
Varun Industries Allotment Status
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Varun Industries Allotment Status at Bigshare
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Nifty November futures near spot price
Turnover in F&O segment decreases
Nifty November 2007 futures were at Rs 5913, at a premium of 0.90 points as compared to spot closing of 5912.10.
NSE’s futures & options (F&O) segment turnover was Rs 65,894.61 crore, which was lower than Rs 68,270.99 crore on Wednesday, 14 November 2007.
Reliance Energy November 2007 futures were at premium, at Rs 1870.30, compared to the spot closing of Rs 1853.60.
GMR Infrastructure November 2007 futures were at premium, at Rs 228.85, compared to the spot closing of Rs 227.
Petronet LNG November 2007 futures were at premium, at Rs 115.75, compared to the spot closing of Rs 113.05.
In the cash market, the S&P CNX Nifty lost 25.80 points or 0.43% at 5912.10.
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