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Wednesday, April 30, 2008
BSE Bulk Deals to Watch - Apr 30 2008
Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
30/4/2008 505506 AXON INFOTEC YASH RAJIV AGARWAL B 3741 43.00
30/4/2008 590059 BIHAR TUBES SPJ STOCK B 49357 152.30
30/4/2008 590059 BIHAR TUBES SPJ STOCK S 49357 152.94
30/4/2008 532271 CYBERMAT INF EDELWEISS ESTATES PRIVATE LIMI B 542946 7.00
30/4/2008 532271 CYBERMAT INF EDELWEISS ESTATES PRIVATE LIMITED S 542752 7.01
30/4/2008 532318 GEMINI COMMU AYODHYAPATI INVESTMENT PVT LTD B 149086 271.40
30/4/2008 532318 GEMINI COMMU AYODHYAPATI INVESTMENT PVT LTD S 129087 272.20
30/4/2008 531137 GEMSTONE INV DEEPA J SHAH B 50000 16.80
30/4/2008 531137 GEMSTONE INV BHAVESH PRAKASH PABARI S 50000 15.35
30/4/2008 509567 GOA CARBON L SATISH MAYEKAR B 50000 101.00
30/4/2008 509567 GOA CARBON L SUNITA DEVI S 51450 101.00
30/4/2008 532283 KASHYAP TEC OM EDUCATION IT PVT LTD B 1995724 2.00
30/4/2008 531602 KOFF BR PICT UNIVERSAL CREDIT B 55000 21.00
30/4/2008 512267 MEDIA MATRIX R K DHAWAN S 200900 5.34
30/4/2008 524570 PODDAR PIGME GUJARAT FLUOROCHEMICALS LIMITE S 123000 29.89
30/4/2008 531273 RADHE DEVELO SHYAM RAMBHAI PATEL S 65000 136.10
30/4/2008 530253 RAJAS TUBE M APL INFRASTRUCTURE PRIVATE LIM B 30551 15.90
30/4/2008 532665 RAJVIR IND INDIA EMERGING INFRASTRUCTURE PVT LTD S 17984 169.90
30/4/2008 532961 SITA SHREE KASHISH FINSTOCK B 246001 60.83
30/4/2008 532961 SITA SHREE S.M.NISSAR B 147142 60.96
30/4/2008 532961 SITA SHREE DEVANG M SHAH B 204478 62.01
30/4/2008 532961 SITA SHREE N D NISSAR B 251440 61.74
30/4/2008 532961 SITA SHREE DIPAK R RATHOD B 161466 62.98
30/4/2008 532961 SITA SHREE ANAND YOGESH SHARES AND CONSULTANCY PVT LTD S 213437 57.00
30/4/2008 532961 SITA SHREE KASHISH FINSTOCK S 246001 60.90
30/4/2008 532961 SITA SHREE S.M.NISSAR S 147142 60.92
30/4/2008 532961 SITA SHREE DEVANG M SHAH S 204478 61.94
30/4/2008 532961 SITA SHREE N D NISSAR S 251440 61.71
30/4/2008 532961 SITA SHREE DIPAK R RATHOD S 161466 60.74
30/4/2008 532966 TITAGARH WAG B K SHAH CO B 122463 768.03
30/4/2008 532966 TITAGARH WAG B K SHAH CO S 122466 775.00
30/4/2008 532948 TULSI EXTRU MANSUKH STOCK BROKERS LTD B 90015 80.73
30/4/2008 532948 TULSI EXTRU MANSUKH STOCK BROKERS LTD S 90015 80.66
30/4/2008 531390 UPSURGE INVS DAYAKRISHNA GOYAL B 100000 8.60
NSE Bulk Deal Watch - Apr 30 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
30-APR-2008,BANG,Bang Overseas Limited,JYOTI VARDHAN SONTHALIA,BUY,100000,214.95,-
30-APR-2008,BOMDYEING,Bombay Dyeing & Mfg Co.,P R B SECURITIES PRIVATE LTD,BUY,272766,1035.17,-
30-APR-2008,DHANUS,Dhanus Technologies Limit,RAGHAVAN.R,BUY,129409,264.11,-
30-APR-2008,EVINIX,Evinix Accessories Limite,DIPAK RAMANBHAI RATHOD,BUY,1154288,17.26,-
30-APR-2008,GREENPLY,Greenply Industries Ltd,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,BUY,780000,260.00,-
30-APR-2008,SITASHREE,Sita Shree Food Products,ADROIT FINANCIAL SERVICES PVT LTD,BUY,131222,62.91,-
30-APR-2008,SITASHREE,Sita Shree Food Products,BALASO VITTHAL SHINDE,BUY,74190,61.96,-
30-APR-2008,SITASHREE,Sita Shree Food Products,DEVANG MAHENDRA SHAH,BUY,136817,62.09,-
30-APR-2008,SITASHREE,Sita Shree Food Products,GANSHYAMBHAI SANALAL SHAH,BUY,192291,60.20,-
30-APR-2008,SITASHREE,Sita Shree Food Products,GOPAL TRADERS,BUY,120428,63.00,-
30-APR-2008,SITASHREE,Sita Shree Food Products,JHAVERI TRADING AND INVESTMENT PVT LTD,BUY,153249,63.46,-
30-APR-2008,SITASHREE,Sita Shree Food Products,KASHISH FINSTOCK,BUY,402500,58.86,-
30-APR-2008,SITASHREE,Sita Shree Food Products,MAHESH CHAND MITTAL,BUY,140000,61.15,-
30-APR-2008,SITASHREE,Sita Shree Food Products,PRAKASH K SHAH SHARES & SECURITIES PVT. LTD,BUY,114043,59.83,-
30-APR-2008,SITASHREE,Sita Shree Food Products,RUPESH KIRIT DALAL,BUY,270145,63.55,-
30-APR-2008,SITASHREE,Sita Shree Food Products,SHETTY MANISH NARAYANBHAI,BUY,164627,60.98,-
30-APR-2008,SUPREMETEX,Supreme Tex Mart Limited,RAJESH SHANKARRAO GIRME,BUY,200000,35.70,-
30-APR-2008,TRICOM,Tricom India Limited,ACCURATE FINSTOCK PVT LTD,BUY,95000,165.00,-
30-APR-2008,TRICOM,Tricom India Limited,LISTED INVESTMENTS LIMITED,BUY,140000,165.00,-
30-APR-2008,TULSI,Tulsi Extrusions Limited,DIPAK RAMANBHAI RATHOD,BUY,315194,80.26,-
30-APR-2008,TULSI,Tulsi Extrusions Limited,MANSUKH SECURITIES & FINANCE LTD,BUY,73044,80.60,-
30-APR-2008,TWL,Titagarh Wagons Limited,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,99289,788.75,-
30-APR-2008,TWL,Titagarh Wagons Limited,B K SHAH CO KETAN BHAILAL SHAH,BUY,128741,773.43,-
30-APR-2008,WENDT,Wendt (India) Ltd.,GAGANDEEP CREDIT CAPITAL PVT. LTD.,BUY,24074,625.00,-
30-APR-2008,BANG,Bang Overseas Limited,STUPENDORS TRADERS PVT LTD,SELL,100000,214.79,-
30-APR-2008,BOMDYEING,Bombay Dyeing & Mfg Co.,P R B SECURITIES PRIVATE LTD,SELL,262278,1037.68,-
30-APR-2008,DHANUS,Dhanus Technologies Limit,RAGHAVAN.R,SELL,120409,264.32,-
30-APR-2008,EVINIX,Evinix Accessories Limite,ACCURATE FINSTOCK PVT LTD,SELL,550000,17.05,-
30-APR-2008,EVINIX,Evinix Accessories Limite,DIPAK RAMANBHAI RATHOD,SELL,1534734,17.88,-
30-APR-2008,GREENPLY,Greenply Industries Ltd,AENEAS PORTFOLIO COMPANY LP (FDI),SELL,780000,260.00,-
30-APR-2008,IBSEC,Indiabulls Securities Lim,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,1900000,131.77,-
30-APR-2008,KSCL,Kaveri Seed Company Limit,KOTAK MAHINDRA UK A/C SANDSTONE CAPITAL INDIA MASTER FUND LI,SELL,152104,306.00,-
30-APR-2008,SITASHREE,Sita Shree Food Products,ADROIT FINANCIAL SERVICES PVT LTD,SELL,131222,62.34,-
30-APR-2008,SITASHREE,Sita Shree Food Products,ANAND YOGESH SHARES AND CONSULTANCY PVT LTD,SELL,214000,57.00,-
30-APR-2008,SITASHREE,Sita Shree Food Products,BALASO VITTHAL SHINDE,SELL,234801,61.11,-
30-APR-2008,SITASHREE,Sita Shree Food Products,DEVANG MAHENDRA SHAH,SELL,136817,62.28,-
30-APR-2008,SITASHREE,Sita Shree Food Products,GANSHYAMBHAI SANALAL SHAH,SELL,154363,62.38,-
30-APR-2008,SITASHREE,Sita Shree Food Products,GOPAL TRADERS,SELL,400509,61.01,-
30-APR-2008,SITASHREE,Sita Shree Food Products,JHAVERI TRADING AND INVESTMENT PVT LTD,SELL,153249,62.28,-
30-APR-2008,SITASHREE,Sita Shree Food Products,KASHISH FINSTOCK,SELL,402500,58.52,-
30-APR-2008,SITASHREE,Sita Shree Food Products,MAHESH CHAND MITTAL,SELL,35198,59.43,-
30-APR-2008,SITASHREE,Sita Shree Food Products,PRAKASH K SHAH SHARES & SECURITIES PVT. LTD,SELL,114043,59.92,-
30-APR-2008,SITASHREE,Sita Shree Food Products,RUPESH KIRIT DALAL,SELL,270145,63.44,-
30-APR-2008,SITASHREE,Sita Shree Food Products,SHETTY MANISH NARAYANBHAI,SELL,164627,60.79,-
30-APR-2008,SUBEX,Subex Limited,MORGAN STANLEY DEAN WITTER MAURITIUS CO. LTD,SELL,214956,160.78,-
30-APR-2008,TRICOM,Tricom India Limited,ACCURATE FINSTOCK PVT LTD,SELL,95000,165.01,-
30-APR-2008,TRICOM,Tricom India Limited,RAJYOG SHARE AND STOCK BROKERS,SELL,90000,165.00,-
30-APR-2008,TULSI,Tulsi Extrusions Limited,DIPAK RAMANBHAI RATHOD,SELL,315194,81.28,-
30-APR-2008,TULSI,Tulsi Extrusions Limited,INDIA MAX INVESTMENT FUND LTD,SELL,225000,80.03,-
30-APR-2008,TULSI,Tulsi Extrusions Limited,MANSUKH SECURITIES & FINANCE LTD,SELL,73044,80.91,-
30-APR-2008,TWL,Titagarh Wagons Limited,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,93298,784.31,-
30-APR-2008,TWL,Titagarh Wagons Limited,B K SHAH CO KETAN BHAILAL SHAH,SELL,128780,772.89,-
30-APR-2008,WENDT,Wendt (India) Ltd.,WENDT GMBH,SELL,24495,625.67,-
Post Market Commentary - Apr 30 2008
The Indian market closed in the negative territory as the profit booking took a lead in a volatile trading session. The market was unable to sustain at higher level after a firm start and fell to pare all its initial gains. A holiday yesterday due to the celebration of Maharastra Day tomorrow and the US Federal Reserve Policy meeting scheduled to be held later on the day led the investors to take calculated steps to clear up their positions.
The market breadth was weak as 1397 stocks closed in red while 1296 stocks closed in green.
The BSE Sensex closed lower by 91.15 points at 17,287.31 and NSE Nifty fell by 29.6 points to close at 5,165.90. The BSE Mid Caps and Small Cap fell by 8.21 points and 11.74 points to close at 7,138.74 and 8,773.57 respectively.
Major losers from the BSE are IFCI (9.86%), Alstom Projects (8.74%), Naga Fert (8.49%), Chambal Fert (6.75%), RCF (4.82%), Cairn India (4.67%), Titan Inds (4.50%) and Hind Zinc (4.44%).
Major gainers from the BSE are Praj inds (14.76%), Nestle (9.15%), Lanco Infra (8.79%), GTL Infra (8.33%), Deccan CHR (6.25%), I-Flex (6.03%) and Glaxosmithkline (5.48%).
The Realty index dropped by 144.75 points to close at 8,505.49. Major losers are Anant Raj (4.39%), DLF (2.84%), Unitech (2.24%), Penland (1.98%), Indbull Real (1.72%), Sobha Dev (1.4%) and Parsvnath (0.54%).
The Metal index fell by 78.57 points to close at 16,114.40. Losers are Hind Zinc (4.44%), Sterlite inds (4.08%), SH. Precoated (3.68%), Jindal Stainless (3%), Welspun Guj (2.61%), Maharash Sea (2.40%) and Nalco (2.06%).
The Capital Goods index closed flat at 13,931.25. Gainers are Praj Inds (14.76%), AIA Engineering (5.08%), Kir Oil Eng (3.80%), ABB (0.55%) and BHEL (0.27%) closed in green while Alstom Projects (8.74%), Areva (3.34%), Jyoti Structures (2.09%) and Thermax (1.99%) closed in red.
The Bankex index slipped by 145.07 points to close at 8,819.68. Scrips that fell are Federal bank (2.91%), PNB (2.46%), ICICI bank (2.43%), Axis bank (2.12%), HDFC bank (2.11%), Union bank (1.84%) and IOB (0.94%).
The Oil & Gas index closed lower by 180.71 points at 11,480.55 as Cairn India (4.67%), RNRL (3.47%), Aban Offshore (2.49%), ONGC (1.84%), Reliance industries (1.44%), Essar Oil (1.16%) and RPL (0.49%).
Market snaps early gains on late selling
The market showed strong optimism in early trades, but slowed down considerably by noon trades, before a wave of selling pressure in late trades pulled the index below the 17,300 mark at close. After resuming 101 points higher over its last close at 17,378, the Sensex rallied sharply in early trades to scale a new intra-day peak of 17,481. The market witnessed listless trading with a positive bias in noon trades due to lack of fresh buying support. However, late selling in select realty, consumer durables, Bankex and oil & gas stocks saw the index drift into red and touch the day's low of 17,242. The Sensex finally signed off the session with losses of 119 points at 17,259, while the Nifty moved down by 30 points to close at 5,166.
The market breadth was negative. Of the 2,768 stocks traded on the BSE 1,423 stocks declined, 1,280 stocks advanced and 65 stocks ended unchanged.
Among the laggards, HDFC tumbled 3.69% at Rs2,775, DLF dropped 2.84% at Rs705.25, Grasim shed 2.81% at Rs2,402.75, ICICI Bank lost 2.42% at Rs879,40, Hindalco moved down 2.32% at Rs193.60, HDFC Bank lost 2.20% at Rs1,513.50 and ACC declined 2.15% at Rs758.65. ONGC at Rs1,033.40, Reliance Industries at Rs2,614.85, Ranbaxy Laboratories at Rs480.05 and State Bank of India at Rs1,776.35 dipped by over 1% each.
Select counters attracted buying support. Mahindra rose 4.31% at Rs670.40, ITC advanced 3.61% at Rs219.80, Tata Motors flared up 3.48% at Rs662.20, Wipro gained 1.96% at Rs488.60 and Jaiprakash Associates was up 1.95% at Rs271.30.
Ispat Industries was the most actively traded counter on the BSE with trades of over 1.96 crore shares followed by IFCI (1.60 crore shares), Reliance Natural Resources (1.38 crore shares), Reliance Petroleum (1.18 crore shares) and IB Securities (1.17 crore shares).
Valuewise, Sesa goa registered a turnover of Rs258 crore followed by Reliance Petroleum (Rs240 crore), Reliance Communications (Rs235 crore), TitaGarh (Rs200 crore) and Reliance Capital (Rs188 crore)
Profit taking pulls Sensex down 91 points; ICICI Bank, RIL slide
Profit taking pulled the market lower in choppy trade today. Traders booked profit ahead of the outcome of the US Federal Reserve's policy meeting later in the day. The market breadth turned negative in late trade in contrast to strong breadth earlier in the day.
Banking and realty stocks declined even as auto stocks rose. Consumer durables stocks fell. IT and FMCG stocks rose. Oil & gas majors declined. European markets which opened after Indian markets were in red.
The 30-share BSE Sensex shed 91.15 points or 0.52% at 17,287.31. Sensex hit a high of 17,480.70 in early trade. At the day’s high, Sensex rose 102.24 points. Sensex hit a low of 17241.88 in late trade. At day’s low Sensex lost 136.58 points.
The broader based S&P CNX Nifty was down 29.6 points or 0.57% at 5,165.90. Nifty May 2008 futures were at 5183.90, at a premium of 18 points as compared to spot closing of 5165.90.
BSE clocked a turnover of Rs 6856 crore today compared to Rs 7290.22 crore yesterday, 29 April 2008. The NSE's futures & options (F&O) segment turnover was Rs 33,950.04 crore, which was lower than Rs 41,819.49 crore on Tuesday, 29 April 2008.
The market breadth turned negative on BSE with 1296 shares advancing as compared to 1397 that declined. 75 remained unchanged.
The BSE Mid-Cap index down 0.11% to 7,138.74 and BSE Small-Cap index down 0.13% to 8,773.57.
BSE Consumer Durables index (down 0.93% to 4,543.11), BSE Oil & Gas index (down 1.33% to 11,505.79), BSE Bankex (down 1.62% to 8,819.68), BSE Realty index (down 1.67% to 8,505.49) underperformed Sensex.
BSE FMCG index (up 2.02% to 2,461.38), BSE Auto index (up 1.71% to 4,726), BSE PSU index (up 0.91% to 8,081.53), BSE HealthCare index (up 0.62% to 4,275.10), BSE IT index (up 0.57% to 4,261.93), BSE Power index (up 0.07% to 3,338.81), BSE Capital Goods index (flat at 13931.25), BSE Metal index (down 0.49% to 16,114.40) outperformed Sensex.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) declined 1.44% to Rs 2,614.85.
Consumer Durables stocks declined. Titan Industries (down 4.5% to Rs 1,244.30), Asian Star Company (down 1.33% to Rs 1,275.30) edged lower. Videocon Industries declined 1.59% to Rs 374.20. The company’s net profit rose 8.55% to Rs 251.22 crore on 15.69% rise in total income to Rs 2538.78 crore in Q4 March 2008 over Q4 March 2007.
Realty stocks declined. DLF (down 2.84% to Rs 705.25), Unitech (down 2.24% to Rs 310.40) and Indiabulls Real Estate (down 1.72% to Rs 547.75) edged lower.
Banking stocks declined. ICICI Bank (down 2.43 % to Rs 879.40), HDFC Bank (down 2.11% to Rs 1,514.85), State Bank of India (down 0.96% to Rs 1,776.35) edged lower.
FMCG stock rose. ITC (up 3.61% to Rs 219.80), Tata Tea (up 3.67% to Rs 912.25) edged higher. India’s largest FMCG major by sales Hindustan Unilever was flat at Rs 250.65. Nestle India jumped 9.15% to Rs 1774 on reporting 47.7% surge in net profit to Rs 160.15 crore in Q1 March 2008 over Q1 March 2007.
Auto stocks rose. Mahindra & Mahindra (up 4.31% to Rs 670.40), Maruti Suzuki India (up 1.45% to Rs 741.90), Tata Motors (up 3.48% to Rs 662.20) edged higher. India’s largest motorbike maker by market share Hero Honda Motor declined 1.61% to Rs 848.
IT stocks rose. Wipro (up 1.96% to Rs 488.60), Infosys (up 0.17% to Rs 1,753.75), Tata Consultancy Services (up 0.96% to Rs 919.55) and Satyam Computer Services (up 0.59% to Rs 482.20) edged higher.
Jaiprakash Associates (up 1.95% to Rs 271.30), Bharat Heavy Electricals (up 0.27% to Rs 1,897) edged higher from Sensex pack.
Grasim Industries (down 2.81% to Rs 2,402.75), Hindalco Industries (down 2.32% to Rs 193.60), ACC (down 2.15% to Rs 758.65), Ranbaxy Laboratories (down 0.99% to Rs 480.085) edged lower from Sensex pack.
India’s largest dedicated housing finance firm by operating income HDFC declined 2.66% to Rs 2,804.80. The company’s net profit rose 39.64% to Rs 768.12 crore on 33.82% rise in total income to Rs 2,320.21 crore in Q4 March 2008 over Q4 March 2007.
India’s largest telecom services provider by sales Reliance Communications rose 0.88% to Rs 579.75. The company’s consolidated net profit rose 70.5% to Rs 5401.14 crore on 31.79% rise in total income to Rs 19067.76 crore in the year ended March 2008 over the year ended March 2007.
NTPC rose 1.08% to Rs 196.75. NTPC said on Tuesday its board had approved spending Rs 487 crore on renovating Auraiya gas power station in Uttar Pradesh. The board of the state-run firm also approved setting up an 8 megawatt (MW) Singrauli small hydel project in Uttar Pradesh at an estimated cost of Rs 62.90 crore, to add capacity from renewable energy sources.
Ispat Industries clocked the highest volume of 1.96 crore shares on BSE. IFCI (1.6 crore shares), Reliance Natural Resources (1.38 crore shares), Reliance Petroleum (1.18 crore shares) and Indiabulls Securities (1.17 crore shares) were the other volume gainers in that order.
Sesa Goa clocked the highest turnover of Rs 258.69 crore on BSE. Reliance Petroleum (Rs 240.62 crore), Reliance Communications (Rs 235,95 crore), Titagarh Wagons (Rs 200.66 crore) and Reliance Capital (Rs 188.92 crore) were the other turnover toppers in that order.
The market expects the Fed to cut interest rates by 25 basis points to 2% and then signal that its rate-cutting cycle may be over for now in the face of mounting global energy and food inflation pressure. Indian stock market remains closed tomorrow, 1 May 2008, on account of Maharashtra Day.
Inflation remains the biggest concern for the Indian stock market. The measures taken by the Union government to control inflation have also added to uncertainty on corporate profit. Finance Minister P Chidambaram yesterday, 29 April 2008, said government will impose export tax on basmati rice and some steel products, and cut import duties on key inputs like ferro alloys and metallurgical coke. He said the measures were being taken to improve domestic supplies and to moderate prices. The government has already banned export of cement and non-basmati rice.
Given that parliamentary elections are scheduled next year (in May 2009), the government may leave no stone unturned in its attempt to rein in inflation. This is bad news for commodity scrips like cement, steel etc.
In a bid to rein in inflation, the Reserve Bank of India, on Tuesday, 29 April 2008, raised cash reserve ratio (CRR) by 25 basis points to 8.25%, to suck out excess liquidity in the banking system, in its annual monetary policy review. While the central bank has mentioned price stability as its key priority, the overall undertone of the policy is not as hawkish as market had feared. That in turn boosted the bourses with Sensex jumping 362.50 points or 2.13% on Tuesday to settle at 17,378.46. The RBI governor Y V Reddy expects inflation to moderate in the next 2-3 months.
Good Q4 results March 2008 results and firm global markets, triggered a solid rebound in the Indian market over the past few days. Buying by domestic institutions has supported the market.
The structural growth drivers of the Indian economy remain intact – India’s economy is expected to witness a decent-to-strong growth for a long period of time due to favourable demographics. Rating agency CRISIL in its latest outlook for Indian economy for the year through March 2009 has stated that the overall growth scenario is expected to remain strong with investment as the main driver.
Another pointer to the fact that the long term India growth story remains intact is the outcome of the latest 2008 US-India Business Council (USIBC) survey, according to which, India is, and will continue to be, a premier destination for investment by US firms, with a large number of respondents rating future economic growth in India as highly sustainable.
On Wall Street, stocks ended little changed on Tuesday, 29 April 2008, as setbacks for two drugs weighed down the pharmaceutical sector, offsetting the relief from a retreat in record high crude oil prices.
Asian markets were mixed today. Key benchmark indices in China, South Korea, and Taiwan were up by between 0.32% to 4.82%. Key benchmark indices from Hong Kong, Japan and Singapore was down between 0.3 to 0.6%.
European markets were in the red. France’s CAC 40, Germany’s DAX and UK’s FTSE 100 fell between 0.38% to 0.73%.
Trading Calls - Apr 30 2008
Nifty (5195) Sup 5150 Res 5260
Buy RNRL at CMP Rs126, SL Rs122, Target - Rs133,135
Buy DLF at CMP Rs725, SL Rs712, Target - Rs745,747
Buy Satyam at CMP Rs476 SL471, Target – Rs490,493
Sell Mah. Seamless at CMP Rs303, SL Rs308, Target - Rs295,290
Sell Grasim at CMP Rs2,474, SL 2500, Target - Rs2,430,2,420
Pre Session Commentary - Apr 30 2008
The Indian Market is likely to have a positive opening as he Asian market is trading higher. On Tuesday, the Indian Market closed with handsome gains after the announcement of the monetary policy by the RBI in which it kept all the key interest rates unchanged but it raised the Cash Reserve Ratio by 25 basis point As per this, the scheduled banks required to maintain CRR of 8.25% with effect from the fortnight beginning May 24, 2008. But earlier there are rumors of hike in repo rate and revere repo rate but RBI beat all the expectations by keeping these rates unchanged. This led to the boosting of the sentiments among the investors and heavy buying was witnessed from the realty, metal and bakex indices baskets. In this review, RBI expects the economy to grew by 8-8.5% in 2008-09 also inflation remained a serious concern and as per RBI it would be brought down to around 5.5% in 2008-09 and the preference would be to bring it close to 5%. Though the market opened on a firm note but pared all its gains before the announcement of the policy but gained he momentum soon after the declaration of monetary policy review. The BSE Sensex closed higher by 362.50 points at 17,378.46 and NSE Nifty closed up by 105.85 points to close at 5,195.50. We expect that the market may remain volatile during the trading session.
On Tuesday, the US market closed mixed. The Dow Jones Industrial Average (DJIA) closed lower by 39.81 points at 12,831.94 along with S&P 500 fell by 5.43 points to close at 1,390.94 while NASDAQ closed marginally higher by 1.70 points at 2,426.10.
The Indian ADRS closed mixed. In technology sector, Satyam grew by (5.67%) along with Infosys by (3.81%), Patni Comp by (2.58%) and Wipro by (1.89%). In banking sector, HDFC Bank decreased by (0.55%) while ICICI Bank increased by (0.22%). In telecommunication sector, MTNL and Tata Communications dropped by (2.12%) and (1.93%) respectively.
Today the major stock markets in Asia are trading with marginal gains. Hang Seng is trading higher by 43.10 points at 25,871.05 along with Taiwan Weighted trading up by 36.80 points at 8,928.54 and Seoul Composite trading at 1,816.72 up by 5.21 points.
The FIIs on Tuesday stood as net buyer in equity while net seller in debt. The gross equity purchased was Rs2,620.70 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,539.50 Crore and gross debt sold stood at Rs444.60 Crore. Therefore, the net investment of equity reported was Rs81.20 Crore and net debt was (Rs444.60 Crore).
Today, Nifty has support at 5,086 and resistance at 5,289 and BSE Sensex has support at 17,034 and resistance at 17,791.
Market may take a breather after solid rebound
The market may move in a narrow range today as investors may stay on the sidelines ahead of a key event viz. the outcome of the policy meeting of the US Federal Reserve, later in the day. The market expects the Fed to cut interest rates by 25 basis points to 2% and then signal that its rate-cutting cycle may be over for now in the face of mounting global energy and food inflation pressure. Indian stock market remains closed tomorrow, 1 May 2008, on account of Maharashtra Day.
Inflation remains the biggest concern for the Indian stock market. The measures taken by the Union government to control inflation have also added to uncertainty on corporate profit. Finance Minister P Chidambaram yesterday, 29 April 2008, said government will impose export tax on basmati rice and some steel products, and cut import duties on key inputs like ferro alloys and metallurgical coke. He said the measures were being taken to improve domestic supplies and to moderate prices. The government has already banned export of cement and non-basmati rice.
Given that parliamentary elections are scheduled next year (in May 2009), the government may leave no stone unturned in its attempt to rein in inflation. This is bad news for commodity scrips like cement, steel etc.
In a bid to rein in inflation, the Reserve Bank of India, on Tuesday, 29 April 2008, raised cash reserve ratio (CRR) by 25 basis points to 8.25%, to suck out excess liquidity in the banking system, in its annual monetary policy review. The policy stance of the central bank continues to be hawkish. The market shrugged off further monetary tightening by RBI as Sensex rose 362.50 points or 2.13% on Tuesday to settled at 17,378.46. The market took solace in the central bank keeping the key interest rates – repo rate, reverse repo rate and bank rate, unchanged. The RBI governor Y V Reddy expects inflation to moderate in the next 2-3 months.
Sensex is currently near a two-month high, having risen 2568.97 points or 17.34% from a low of 14809.49 on 17 March 2008. Good Q4 results March 2008 results and firm global markets, triggered a solid rebound in the Indian market over the past few days. Buying by domestic institutions has supported the market.
The structural growth drivers of the Indian economy remain intact – India’s economy is expected to witness a decent-to-strong growth for a long period of time due to favourable demographics. Rating agency CRISIL in its latest outlook for Indian economy for the year through March 2009 has stated that the overall growth scenario is expected to remain strong with investment as the main driver.
Another pointer to the fact that the long term India growth story remains intact is the outcome of the latest 2008 US-India Business Council (USIBC) survey, according to which, India is, and will continue to be, a premier destination for investment by US firms, with a large number of respondents rating future economic growth in India as highly sustainable
As per provisional data, foreign institutional investors (FIIs) bought shares worth a net Rs 232.18 crore on Tuesday, 29 April 2008. Domestic funds bought shares worth a net Rs 403.27 crore.
FIIs were net buyers of Rs 802.65 crore in the futures & options segment on Tuesday. According to data released by the NSE, FIIs were net buyers of index futures to the tune of Rs 548.61 crore and bought index options worth Rs 496.73 crore. They were net sellers of stock futures to the tune of Rs 228.72 crore and sold stock options worth Rs 13.97 crore.
On Wall Street, stocks ended little changed on Tuesday, 29 April 2008, as setbacks for two drugs weighed down the pharmaceutical sector, offsetting the relief from a retreat in record high crude oil prices.
Asian markets were mostly in the green today. Key benchmark indices in China, Japan, South Korea, Singapore and Taiwan were up by between 0.2% to 3.8%.
Morning Call - Apr 30 2008
Market Grape Wine :
In House :
Nifty at a support of 5156 and 5107 with resistance 5227 and 5290 levels.
Cash :
Buy : Aptech above 264 TGT 273 with S/L 250.
Buy: Guj alkali above 192 TGT 201 with S/L 189.
Future :
Buy : Unitech above 313 TGT 345 with S/L 300.
Sell: Rcom below 582 TGT 555 with S/L 592.
Not in comfort zone!
If we're growing, we're always going to be out of our comfort zone.
The bulls received a parting gift from RBI chief Y.V. Reddy as the central bank decided to leave key rates unchanged, and instead hiked the CRR by another 25 bps.As always, the latest move by Reddy & Co. surprised the markets, which were looking for a small increase in repo and reverse repo rates. The RBI's decision to maintain status quo on interest rates is aimed at curtailing inflation by sucking out excess liquidity. At the same time, the move will keep rates mostly stable, thus allowing the growth momentum to continue. Rates on auto loans are likely to rise, while home loans of up to Rs30 lakh may become a little cheaper. Banks will definitely be under pressure to maintain their margins amid slowing credit growth and high interest rates.
Stocks and bonds rallied following the RBI's announcement. The rally got further boost from the Finance Minister who decided to extend tax concessions to the IT sector under the STPI scheme for one more year. PSU oil firms too gained after their proposed refineries too received tax exemption. Today, the Fed will announce its policy on interest rates and provide some clues on the outlook for the US economy. Wall Street expects a 25 bps cut in the fed funds rate. Some experts also see the Fed signaling status quo for some time after today's decision. There is also a slim chance of no revision in rates. The Bank of Japan is also likely to keep its key rate unchanged today.
We expect the market to open flat to slightly up. Things may turn lackluster and choppy later on. The overall the mood is much brighter on the street and odds of a major downside are pretty slim. Still, one needs to be a little careful as there may be some cooling from higher levels.
FIIs were net buyers of Rs2.32bn (provisional) in the cash segment yesterday while the local institutions too pumped Rs4.03bn. In the F&O segment, foreign funds were net buyers of Rs8.03bn. On Monday, FIIs were net buyers of Rs812mn in the cash segment while Mutual Funds offloaded shares worth nearly Rs2bn.
Key Results Today: Aditya Birla Nuvo, Advanta, Alfa Laval, Amtek Auto, Amtek India, Aptech, Assam Co., BILT, Balrampur Chini, Bank of Maharashtra, Bank of India, Dabur India, Dena Bank, DLF, Genus Power, Gillette India, Great Offshore, Gujarat Alkalies, Gujarat Gas, Hindalco, HDFC, Info Edge, Jaiprakash Associates, Jindal Saw, Jindal Stainless, Kansai Nerolac, KEC International, MTNL, Moser Baer, Mphasis, Onmobile, Prime Focus, P&G Health, Puravankara, RCOM, Sintex, Spice Telecom, Sterling Biotec, Syndicate Bank, Tanla, Tata Elxsi and Videocon Industries.
Asian stocks were trading mixed this morning. Commodity producers were down after metals and crude oil prices declined and US consumer confidence sank to a five-year low.
BHP Billiton led declines after gold and copper slumped. Inpex Holdings, Japan's biggest oil explorer, and Woodside Petroleum of Australia fell as crude oil tumbled the most in a month. Honda slipped the most in a week.
The Nikkei in Tokyo was down 11 points at 13,883 while the Hang Seng in Hong Kong was down 80 points at 25,833. The Kospi in Seoul rose 5 points to 1816 while the Straits Times in Singapore was almost flat at 3174.
The Shanghai Composite in China rallied 93 points to 3616 while the Taiex in Taiwan advanced 26 points to 8917.
The MSCI Asia Pacific Index fell 0.6% to 150.12 as of 10:23 a.m. in Tokyo, the steepest drop since April 22.
An index of raw-materials producers had the biggest decline among the index's 10 industry groups, eight of which were down today. The measure is up 8% this month, poised for its biggest monthly advance since September 2005.
US stocks ended mostly lower on Tuesday. The technology sector got a slight boost from Corning's encouraging results, while the broader market remained cautious ahead of the Federal Reserve's policy announcement on Wednesday.
The mood was generally sour through the session as consumer confidence slid to a five-year low, property values slumped. Also, a drop in oil and metal prices pushed commodity producers lower.
Freeport-McMoRan Copper & Gold and Newmont Mining declined as gold and copper fell, while homebuilders dropped for the first time in four days on a report that housing prices plunged by the most on record.
Pharma major Merck tumbled the most in a month after failing to win approval for a cholesterol pill. Apple and Google advanced, leading the Nasdaq Composite Index to its fourth gain in five days.
The S &P 500 Index lost 5 points, or 0.4%, to 1,390.94, its second straight decline. The Dow Jones Industrial Average slipped 40 points, or 0.3%, to 12,831.94. The Nasdaq finished nearly unchanged at 2,426.1.
Market breadth on Wall Street was negative. About five stocks fell for every three that rose on the New York Stock Exchange.
US light crude oil for June delivery fell $3.12 to settle at $115.63 a barrel on the New York Mercantile Exchange, after a Scottish refinery resumed operation following a labor dispute. On Monday, oil hit a record $119.93 a barrel in electronic trading.
Meanwhile, the national average price for a gallon of regular unleaded gas hit an all-time record of $3.607, AAA reported.
COMEX gold for June delivery fell $18.70 to settle at a four-month low of $876.70 an ounce. The dollar rose versus the euro and fell versus the yen. Treasury prices were flat, with the yield on the benchmark 10-year note at 3.82%, unchanged from 3.82% Monday.
Wednesday could be a volatile day on Wall Street as the FOMC will announce its decision on interest rates at the end of a two-day meeting. But, the market will first have to digest the initial report on first-quarter GDP and another report on crude inventories.
The Fed is expected to cut rates by a quarter of a percentage. Investors will scrutinize the tone of the FOMC statement to determine whether or not additional rate cuts could be in the cards.
The New York-based Conference Board said its consumer confidence index dropped to 62.3 in April from 65.9 in March, reaching the lowest level since March 2003. But the decline was not as steep as economists had expected.
On the housing front, the S&P Case/Shiller Home Price Index showed that home prices posted record declines in February. In addition, foreclosure filings in the first three months of 2008 more than doubled from last year, according to industry group RealtyTrac.
Merck said late Monday that the Food and Drug Administration (FDA) is requesting more information regarding its cholesterol drug candidate Cordaptive. Merck shares fell more than 10%.
Visa reported a jump in quarterly profit late on Monday. Its shares rose about 4.5%. Troubled home lender Countrywide, which is in the process of being bought by Bank of America, reported a loss of nearly $900mn during the first quarter on higher housing-related credit losses.
Deutsche Bank, Germany's biggest bank, announced a $4.2bn writedown for the first quarter. The bank's CEO said financial market conditions during the quarter were the most difficult in recent memory.
On the upside, the world's largest maker of liquid crystal display glass, Corning reported that first-quarter profit more than tripled versus last year on strong demand for flat-screen TVs and computers. Its shares rose nearly 3%.
European shares broke a four-session winning streak. Michelin and Swiss chemical maker Ciba Holdings fell after cutting their 2008 outlook. However, strong results from BP and Shell cushioned the decline. The pan-European Dow Jones Stoxx 600 index lost 0.9%, ending at 320.67.
Germany's DAX 30 fell 0.6% to 6,885.34 and the French CAC-40 dropped 0.7% to 4,977.10. The UK's FTSE 100 held up better, ending the day virtually flat at 6,089.40.
In the emerging markets, the Bovespa in Brazil tumbled 2.8% to 63,825 while the IPC index in Mexico was down 1.15% at 30,270. The RTS index in Russia dropped 1.1% to 2126 while the ISE National 30 index in Turkey slid 1.4% to 53,853.
Bears CRRy...Sensex adds 362 points
RBI’s announcement today fired up bulls after RBI’s monetary Policy left the repo rate and reverse repo rate unchanged and hiked the CRR by 25 bps. NSE Nifty closed above the 200 DMA (daily moving average) for the first time in 40 days since February 29 (Budget Day). This resulted in banking stocks leading the rally with momentum in stocks like SBI, HDFC Bank and Axis Bank.
BSE IT index also showed strength after Finance Minister extended the income tax exemption for software companies by a year to March 31, 2010. Stocks like TCS, Wipro, Satyam Computers and Infosys were among the major gainers.
Metal shares too joined the party despite the Government scrapping customs duty on steel and imposing export duty on steel products. Other prominent gainers included Realty and Oil & Gas.
Finally, the BSE 30-share Sensex closed at 17, 378 up 362 points and NSE Nifty closed at 5, 195 up 105 points.
Satyam Computers surged by over 8% to Rs479 following reports stating that Mindtree Consulting and Satyam Computers bagged a three year contract from Arcelor Mittal. The scrip touched an intra-day high of Rs486 and a low of Rs439 and recorded volumes of over 24, 00, 000 shares on BSE.
TCS gained by over 3% to Rs910 following reports stating that the company bagged Rs4.5bn contract from Scottish Water, a UK based utility firm. The scrip touched an intra-day high of Rs933 and a low of Rs872 and recorded volumes of over 7, 00, 000 shares on BSE.
GAIL gained by 0.5% to Rs439 following reports stating that the company would be a part of the consortium building the US$7.6bn Turkmenistan-Afghanistan-Pakistan-India gas pipeline by 2015. The scrip touched an intra-day high of Rs447 and a low of Rs431 and recorded volumes of over 1, 50, 000 shares on BSE.
IOC surged by over 0.5% to Rs448. Reports said that the company will seek board approval for doubling of its borrowing limit to create a war chest of Rs800bn to fund a major acquisition in E&P sector. The scrip touched an intra-day high of Rs465 and a low of Rs439 and recorded volumes of over 1, 50, 000 shares on BSE.
Cairn India rose by over 0.5% to Rs261 after the company announced its Q1 results with profit at Rs116cr (up 205%) and net sales at Rs316cr (34%). The scrip touched an intra-day high of Rs264 and a low of Rs257 and recorded volumes of over 14, 00, 000 shares on BSE.
BPCL gained by over 1% to Rs395 after reports said that the company in collaboration with Shapoorji Pallonji and Nandan Biomatrix is forming a JV to cultivate, extract and sell jatropha based bio-diesel through its outlets. The scrip touched an intra-day high of Rs399 and a low of Rs389 and recorded volumes of over 50, 000 shares on BSE.
M&M increased by over 1% to Rs642. According to reports, the company entered spares, used-car markets and plans to invest Rs2.5bn approximately in this segment. The scrip touched an intra-day high of Rs646 and a low of Rs632 and recorded volumes of over 40, 000 shares on BSE.
Tata Motors gained by 1% to Rs639 following reports stating that the company is planning a new platform for a compact car code-named X4. The scrip touched an intra-day high of Rs648 and a low of Rs630 and recorded volumes of over 1, 50, 000 shares on BSE.
Corporate News
Reliance Power to spend US$650mn on Indonesian coal mine. (Mint)
Cairn India to start Bhagyam output in 2010; receives approval to develop field with peak output of 40,000 barrels per day. (DNA)
Grasim lines up Rs30bn spend for investments in cement, ready mix concrete and power capacity. (DNA)
Saroj Datta and five other Jet Airways executives resign. (Mint)
NTPC and BHEL to invest Rs50bn in a JV to execute EPC contracts. (DNA)
GVK group plans port close to SEZ in Tamil Nadu. (Mint)
NTPC mulls entry into cement manufacturing with private partners. (Mint)
Alstom Projects may join NTPC-BHEL JV to manufacture turbines and generators. (Mint)
Alibaba.com partners with Infomedia to tap SME’s. (Mint)
Berger Paints to buy Polish firm Bolix SA for US$38mn. (Mint)
Tata Finance refinances US$950mn loan. (BS)
UTV plans 18 films in a year; plans to invest Rs10bn. (BS)
Dish TV CEO Arun Kumar Kapoor quits. (DNA)
Reliance Industries controlled gas field in KG basin to go on-stream by August 2008. (BL)
M&M plans ultra low-cost rural tractor at a cost of around Rs0.2mn. (BL)
Satyam enters into agreement with Arcelor-Mittal for providing sub-contractor activities and help in overall business transformation. (BL)
BHEL to spend Rs5bn for research and development in FY09. (BL)
RNRL has filed a reply in Bombay High Court seeking the government appeal to be dismissed. (ET)
3i Infotech acquires 100% stake in Regulus a US based company for US$80mn.(BL)
TATA Power to refinance US$850mn worth of loans for funding its acquisition of 30% stake in Indonesioan thermal coal producer, PT Kaltime Prima Coal and PT Arutmin Indonesia. (ET)
Rajan Raheja Group is likely to get license for non-life insurance from IRDA. (ET)
SAIL to invest 50% in Steel Industries Ltd Kerala for manufacturing high quality steel with minimal carbon contamination. (FE)
Dhanus Technology signed a MoU with Kerala state private bus operator for providing tracker systems. (FE)
Pyramid Saimira has entered into an agreement with Sony to develop console game based for Sony Play Station2.(FE)
Economic News
Paint makers plan to increase prices next month. (DNA)
Housing loan limit with a lower risk weight of 50% enhanced to Rs3mn from Rs2mn. (BS)
Bad loan norms for infrastructure loans relaxed. (BS)
Government has decided to provide insurance and pension to 300mn workers under its social security scheme. (ET)
Banks to hike auto loan rates to retain margins. (ET)
Government has imposed US$200 per ton duty on basmati exports. (BL)
Finance Minister says PSU refineries to get tax holiday, if they commence refining before March 31, 2012. (BL)
Steel companies threaten to oppose government on steel prices. (FE)
Government imposed export duty of Rs8,000 per ton on basmati rice and lowered minimum export price to US$1,000 per ton from US$1,200. (BS)
Good volumes a positive sign
The markets opened on a cautious note and ended the session with strong gains as the RBI announcement was greeted well by the market players. The erstwhile unwinding bias at higher levels reversed for a change as buying support emerged in force.
The traded volumes were sharply higher and coming on an uptick session, are harbingers of hope. The market breadth was positive as the combined exchange figures were 2324:1588.
The capitalisation of the figures on a commensurate basis was positive as the numbers were Rs 20362 crore:Rs 4499 crore.
The indices have closed at the upper end of the intraday range and that too with positive market internals - indicating the possibility of cheerful times ahead in the absolute short term.
The 5045/5135 range advocated for Tuesday was easily overcome as the Nifty closed significantly higher than this threshold. The coming session is likely to witness a range of 5115 on declines and 5275 on advances. As long as the Nifty remains above the 5150 mark, the outlook is bullish.
The market internals indicate a higher turnover as the participation levels rose sharply. The number of trades increased and the average ticket size was higher, indicating a buying bias by stronger hands.
The outlook for the markets on Wednesday is that of continued optimism as long as the overseas cues are positive.
via Business Standard
Today's Pick - Hindustan Zinc
We recommend a sell in Hindustan Zinc from a short-term perspective. It is visible from the charts of Hindustan Zinc that it has been on a long-term downtrend, since its 52-week high of Rs 969 marked in October 2007. However, in early April 2008, the stock found support at around Rs 500 level and then it went through a short-term corrective rally. We see that the stock’s corrective rally has encountered twin resistance at around Rs 690 levels (a key resistance as wel l as the long-term down trendline that coincides around this level) on April 29 and reversed direction, forming a bearish engulfing pattern near the resistance level. The daily momentum indicator has begun to decline after touching the overbought territory in recent times. Moreover, the long-term down trendline of the stock is still in place. We are bearish on the stock in the short-term. We expect the stock’s long-term downtrend to prolong to our target price level of Rs 580 in the upcoming trading sessions. Investor with short-term perspective can sell the stock while keeping the stop-loss at Rs 708 level.
A dull day for precious metals
Slipping crude price and strength in dollar dampen appetite for commodities
Bullion metals registered sharp drop today, Tuesday, 29 April, 2008 after crude oil prices eased by more than $3/barrel and after the dollar rallied against its rivals. Last week, dollar rose strongly against its rivals thereby putting pressure on precious metal prices. On the other hand, rising energy cost affects prices of bullion metals as a hedge against inflation. Silver prices also fell for the day.
Comex Gold for June delivery fell $18.7 (2.1%) to close at $876.8 ounce on the New York Mercantile Exchange. The price earlier touched $873.60, the lowest for a most-active contract in almost last three months. Last week, gold prices lost $20(2.8%) against previous week’s close. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce.
This year, gold prices have gained 5% for the till date against a 8.5% drop for the dollar against the euro. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.
Comex Silver futures for July delivery fell 48.3 cents (2.8%) to $16.64 an ounce. Silver has gained 10.8% in 2008 till date. Silver gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.
In the energy market today, crude oil fell more than $3 a barrel, the biggest decline in four weeks, after BP restarted a North Sea oil pipeline and the dollar strengthened, reducing the appeal of commodities to investors.
In the currency market today, the U.S. currency headed for its first monthly advance this year against the euro as traders increased bets the Fed will stop lowering bank-borrowing costs after cutting the benchmark federal funds rate by 25 basis points tomorrow. The Federal Reserve's interest-rate meeting begins Tuesday afternoon. The statement will be released on Wednesday at 2:15 p.m. E.T. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, gained 0.3% to 72.83.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies.
Gold, as a dollar-denominated commodity, suffers from dollar strength. On the contrary, gold prices rise with falling dollar as inflationary concerns boosts the metal's appeal as an inflation hedge.
The Fed has reduced its benchmark interest rate by 3 percentage points to 2.25 percent since last September as a housing slump and credit squeeze threatened to push the economy into a recession. Since last September, Fed has axed interest rates six times. The ECB has kept rates unchanged at 4% since June. Traders are looking forward to Fed’s decision on interest rates in its next forthcoming meeting tomorrow.
Gold witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. The Fed reduced federal funds rate three times in FY 2007. In 2006, silver had jumped 46% while gold gained 23%. Gold has tripled in five years as investment demand has soared and mine supplies have remained low.
At the MCX, gold prices for June delivery closed lower by Rs 136 (1.2%) at Rs 11,479 per 10 grams. Prices rose to a high of Rs 11,612 per 10 grams and fell to a low of Rs 11,465 per 10 grams during the day’s trading.
At the MCX, silver prices for May delivery closed Rs 321 (1.4%) lower at Rs 22,142/Kg. Prices opened at Rs 22,385/kg and fell to a low of Rs 22,051/Kg during the day’s trading.
Crude witnesses a deep plunge
Prices slip by more than $3 as supply related concerns ease
Crude prices dropped by more than $3 today, Tuesday, 29 April, as supply concerns eased. BP restarted a North Sea oil pipeline and the dollar strengthened, reducing the appeal of commodities to investors. Gloomy economic news in the U.S. and forecasts that U.S. crude inventories have gained for a second week also weighed on Tuesday's oil prices. Yesterday, prices had touched an all time high of $119.93 during intra day trading.
Crude-oil futures for light sweet crude for June delivery closed at $115.63/barrel (lower by $3.12/barrel or 2.6%) on the New York Mercantile Exchange. It fell to an intraday low of $114.95 earlier. For the year, crude is up by 19.4% till date. Oil increased 77% in the past year as supply failed to keep up with surging demand in China, India and the Middle East.
As per BP, it expects to resume normal throughput at its 700,000 barrel-a-day Forties crude oil pipeline system in the North Sea within several days. The company closed the Forties Pipeline System, carrying 40% of the U.K.'s oil production, after a strike at the Grangemouth refinery in Scotland cut power supplies.
In the currency market today, the U.S. currency headed for its first monthly advance this year against the euro as traders increased bets the Fed will stop lowering bank-borrowing costs after cutting the benchmark federal funds rate by 25 basis points tomorrow. The Federal Reserve's interest-rate meeting begins Tuesday afternoon. The statement will be released on Wednesday at 2:15 p.m. E.T. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, gained 0.3% to 72.83.
Brent crude oil for June settlement today fell $3.31 (2.8%) to $113.43 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.
Natural gas advances 45% this year
Natural gas declined as crude oil fell from a record and the dollar strengthened against the euro. Gas for June delivery fell 48.7 cents (4.3%) to settle at $10.842 per million British thermal units,
Against this backdrop, June reformulated gasoline fell 9.15 cents to $2.9392 a gallon and June heating oil dropped 5.23 cents to $3.2465 a gallon.
Traders anticipated today that an Energy Department report tomorrow will probably show that U.S. crude-oil supplies advanced 950,000 barrels in the week ended 25 April.
At the pump at USA, retail regular gas averaged $3.607 a gallon, a new record high. Average gas prices in San Francisco surpassed $4 a gallon for the first time.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.
At the MCX, crude oil for May delivery closed at Rs 4,664/barrel, lower by Rs 94 (1.9%) against previous day’s close. Natural gas for July delivery closed at Rs 441.2/mmbtu, lower by Rs 16.4/mmbtu (3.6%).
Nifty May 2008 futures above 5,200
Turnover in F&O segment surges
Nifty May 2008 futures were at 5217.40, a premium of 21.90 points as compared to spot closing of 5,195.50.
Turnover in NSE's futures & options (F&O) segment spurted to Rs 41,819.49 crore, as compared to Rs 25,459.22 crore on Monday, 28 April 2008.
Reliance Petroleum (RPL) May 2008 futures were the most active with turnover of Rs 1398.41 crore. RPL May 2008 futures were at 204, a premium compared to the spot closing of 202.55.
However, Reliance Industries (RIL) May 2008 futures were at discount at 2658 compared to the spot closing of 2261.
Sesa Goa May 2008 futures were at premium at 4175 compared to the spot closing of 4165.
In the cash market, the S&P CNX Nifty advanced 105.85 points or 2.08% at 5,195.50.
NSE Bulk Deal Watch - Apr 29 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
29-APR-2008,BOMDYEING,Bombay Dyeing & Mfg Co.,P R B SECURITIES PRIVATE LTD,BUY,201047,923.69,-
29-APR-2008,IBSEC,Indiabulls Securities Lim,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,2100000,129.63,-
29-APR-2008,IDEA,Idea Cellular Limited,HSBC INVESTMENTS (HK) LTD A/C HGIF INDIA EQUITY FUND,BUY,19000000,105.00,-
29-APR-2008,KSERAPRO,K Sera Sera Productions L,EDELWEISS ESTATES PRIVATE LIMITED,BUY,406359,31.53,-
29-APR-2008,MCDHOLDING,McDowell Holdings Limited,BIRLA MUTUAL FUND,BUY,83896,178.00,-
29-APR-2008,SELAN,Selan Exploration Technol,ARUN KRISHAN PURI,BUY,90000,260.26,-
29-APR-2008,SITASHREE,Sita Shree Food Products,ADROIT FINANCIAL SERVICES PVT LTD,BUY,344422,61.52,-
29-APR-2008,SITASHREE,Sita Shree Food Products,AMBIT SECURITIES BROKING PVT. LTD.,BUY,128862,61.66,-
29-APR-2008,SITASHREE,Sita Shree Food Products,DIPAK RAMANBHAI RATHOD,BUY,194625,61.78,-
29-APR-2008,SITASHREE,Sita Shree Food Products,GOPAL TRADERS,BUY,158324,61.18,-
29-APR-2008,ANSALHSG,Ansal Housing and Constru,CLSA (MAURITIUS) LIMITED,SELL,103000,156.98,-
29-APR-2008,BOMDYEING,Bombay Dyeing & Mfg Co.,P R B SECURITIES PRIVATE LTD,SELL,201347,925.12,-
29-APR-2008,CORDSCABLE,Cords Cable Industries Li,ELARA INDIA OPPORTUNITIES FUND LIMITED,SELL,79058,100.00,-
29-APR-2008,IDEA,Idea Cellular Limited,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,SELL,51300000,105.03,-
29-APR-2008,INDIACEM,India Cements Ltd.,PICTET AND CIE,SELL,1521284,169.98,-
29-APR-2008,KSERAPRO,K Sera Sera Productions L,EDELWEISS ESTATES PRIVATE LIMITED,SELL,371203,31.50,-
29-APR-2008,MCDHOLDING,McDowell Holdings Limited,BIRLA MUTUAL FUND,SELL,83896,178.00,-
29-APR-2008,SITASHREE,Sita Shree Food Products,ADROIT FINANCIAL SERVICES PVT LTD,SELL,344422,61.49,-
29-APR-2008,SITASHREE,Sita Shree Food Products,AMBIT SECURITIES BROKING PVT. LTD.,SELL,128862,61.71,-
29-APR-2008,SITASHREE,Sita Shree Food Products,DIPAK RAMANBHAI RATHOD,SELL,194625,61.28,-
29-APR-2008,SITASHREE,Sita Shree Food Products,GOPAL TRADERS,SELL,127390,61.84,-
BSE Bulk Deals to Watch - Apr 30 2008
Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
29/4/2008 530135 AKANKSH FINV ASHOK GUPTA B 150000 4.23
29/4/2008 507828 ANSAL HSG CN CLSA MAURITIUS LIMITED S 88706 156.96
29/4/2008 532946 BANG CHANDRA FINANCIAL SERVICES PVT. LTD. B 75000 213.47
29/4/2008 532946 BANG MARUTI SECURITIES LTD S 109295 207.98
29/4/2008 517001 BIRLA POWER AYODHYAPATI INVESTMENT PVT LTD S 236702 41.60
29/4/2008 530545 COSCO INDIA BDS SHARE BROKERS PVT LTD B 25339 30.46
29/4/2008 530545 COSCO INDIA NAVENDU INVESTMENT CO PVT LTD S 185000 27.74
29/4/2008 530545 COSCO INDIA BDS SHARE BROKERS PVT LTD S 24339 31.29
29/4/2008 532271 CYBERMAT INF NEWGENINTERNATIONAL PVT LTD S 468770 7.01
29/4/2008 532656 FACOR ALLOYS SHREERAM DURGAPRASAD ORES P LTD S 1600000 15.13
29/4/2008 531137 GEMSTONE INV BHAVESH PRAKASH PABARI B 50000 16.01
29/4/2008 531968 INDO GREEN P USHA KAMAL SINGHANIA S 1606900 38.00
29/4/2008 531968 INDO GREEN P KAMAL SHIVBHAGWAN SINGHANIA S 897000 38.00
29/4/2008 513252 JAY USHIN LT PKJ SHARE BROKER LTD S 22290 95.20
29/4/2008 516078 JUMBO BAG LT RINA ASHISHBHAI SHAH B 43935 45.73
29/4/2008 531363 KARUR KCP PK NITIN ANAND B 167344 27.16
29/4/2008 532283 KASHYAP TEC OM EDUCATION IT PVT LTD B 3097209 2.00
29/4/2008 531602 KOFF BR PICT UNIVERSAL CREDIT B 30000 21.00
29/4/2008 524570 PODDAR PIGME GUJARAT FLUOROCHEMICALS LIMITE S 141500 29.82
29/4/2008 531219 POONAM PHARM SWARN GANGA TRADING PVT. LTD. B 170000 3.75
29/4/2008 503873 PRIYA SPIN L ARVIND KUMAR AGGARWAL B 120000 19.65
29/4/2008 531273 RADHE DEVELO SHYAM RAMBHAI PATEL S 60000 129.65
29/4/2008 531583 RAP MEDIA CENTRUM CAPITAL LTD B 81000 144.00
29/4/2008 531583 RAP MEDIA ARORA RUPINDERSHING DILAWARSIN S 81000 144.00
29/4/2008 505529 SHYAMLAL HOL MANISH D.LADAGE S 3950 5.15
29/4/2008 532961 SITA SHREE DEVANG M SHAH B 178255 61.61
29/4/2008 532961 SITA SHREE N D NISSAR B 148244 61.36
29/4/2008 532961 SITA SHREE DEVANG M SHAH S 178255 61.66
29/4/2008 532961 SITA SHREE N D NISSAR S 148244 61.50
Tuesday, April 29, 2008
Sensex scales two-month high as market shrugs off monetary tightening by RBI
The market which had declined yesterday ahead of the Reserve Bank of India's annual monetary policy review, bounced back today after the central bank kept interest rates unchanged. Rate sensitive banking, auto and realty stocks surged. IT stocks surged after the Finance Minister extended tax exemption for the IT sector by a year. Metal stocks rose. The market breadth was strong.
The central bank raised the cash reserve ratio (CRR) by 25 basis points and the stance of its monetary policy was hawkish. The market had witnessed a bout of volatility earlier in the day ahead of monetary policy announcement.
Asian markets which opened before Indian market were mixed. European markets which opened after Indian markets were mixed.
The 30-share BSE Sensex jumped 362.50 points or 2.13% at 17,378.46. Sensex hit a high of 17,424.94 in late trade, its highest level in two months. At the day’s high, Sensex rose 408.98 points. Sensex hit a low of 17011.60 in mid-morning trade. At day's low Sensex fell 4.36 points.
The broader based S&P CNX Nifty was up 105.85 points or 2.08% at 5,195.50
From a recent low of 16698.04 on 23 April 2008, Sensex has gained 680.42 points or 4.07% to 17378.46 on 29 April 2008. From a low of 14809.49 on 17 March 2008, Sensex has risen 2568.97 points or 17.34%. The barometer index is off 3828.31 points or 18.05% from a all time high of 21206.77 struck on 10 January 2008.
The turnover on BSE stood at Rs 7262 crore as compared to a turnover of Rs 5544.33 crore on Monday, 28 April 2008. Turnover in NSE's futures & options (F&O) segment spurted to Rs 41,819.49 crore, as compared to Rs 25,459.22 crore on Monday, 28 April 2008.
Nifty May 2008 futures were at 5217.40, a premium of 21.90 points as compared to spot closing of 5,195.50.
The CRR is the percentage of banks' deposits which they must keep as cash with the central bank. It may be recalled that RBI had earlier this month announced a two-stage rise in CRR to 8%.
The Reserve Bank of India (RBI) said managing liquidity would continue to receive priority in its policy objectives and warned it would act swiftly to curb any signs of adverse developments in inflation expectations.
RBI has forecast economic growth of 8% to 8.5% in the fiscal year that began this month, after an estimated 8.7% growth in 2007/08. RBI said it aims for inflation of around 5.5% this fiscal year with the goal of lowering it close to 5% as soon as possible.
The market breadth was strong on BSE with 1588 shares advancing as compared to 1121 that declined. 61 remained unchanged.
The BSE Mid-Cap index rose 1.13% to 7146.95 and BSE Small-Cap index rose 0.87% to 8,785.31.
BSE Realty index (up 5.9% to 8,650.24), BSE Metal index (up 3.64% to 16192.97), BSE IT index (up 5.24% to 4237.81), BSE Consumer Durables index (up 2.81% to 4585.97), outperformed Sensex.
BSE Oil & Gas index (up 2.02% to 11661.26), BSE Bankex (up 1.68% to 8,964.75), BSE PSU index (up 1.65% to 8008.99), BSE Auto index (up 1.52% to 4,646.62), BSE Capital Goods index (up 1.28% to 13931.17), BSE HealthCare index (up 0.78% to 4,248.62), BSE Power index (up 0.96% to 3,336.34) and BSE FMCG index (up 0.52% to 2,412.61) underperformed Sensex
As per the provisional figures, foreign institutional investors (FII)s bought shares worth Rs 232.18 crore today 29 April 2008 and domestic funds bought shares worth Rs 403.27 crore.
Realty stocks surged in late trade. Indiabulls Real Estate (up 3.06% to Rs 557.35), DLF (up 8.57% to Rs 725.85) and Unitech (up 8.18% to Rs 317.50) rose.
IT stocks surged. Satyam Computer Services (up 8.22% to Rs 479.35), Infosys (up 5.15% to Rs 1,750.75), Wipro (up 4.7% to Rs 479.20) and Tata Consultancy Services (up 3.15% to Rs 910.80) edged higher.
Finance Minister Palaniappan Chidambaram extended by a year a tax holiday scheme for export-driven software companies as he outlined some changes to the federal budget for 2008-09. The scheme for facilities based in technology parks was set to expire in March 2009.
Metal stocks rose. Tata Steel (up 4.01% to Rs 808.90), National Aluminium Company (up 4.37% to Rs 458.70), Hindalco Industries (up 6.44% to Rs 198.20), Steel Authority of India (up 2.08% to Rs 179.40), Sterlite Industries (up 4.77% to Rs 898.85) edged higher.
Finance Minister P Chidambaram today said government will impose export tax on basmati rice and some steel products, and cut import duties on key inputs like ferro alloys and metallurgical coke. He said the measures were being taken to improve domestic supplies and to moderate prices.
Banking stocks surged after the RBI's policy announcement. State Bank of India (up 3.27% to Rs 1,793.50), HDFC Bank (up 1.95% to Rs 1,547.50) and ICICI Bank (up 0.71% to Rs 901.30) edged higher.
Auto Stocks edged higher. Mahindra & Mahindra (up 1.17% to Rs 642.70), Tata Motors (up 1% to Rs 639.95) Maruti Suzuki India (up 1.24% to Rs 731.30), Hero Honda Motors (up 5.34% to Rs 861.85), rose.
HDFC (up 5.95% to Rs 2881.45), Larsen & Toubro (up 2.09% to Rs 3007.40) Jaiprakash Associates (up 5.95% to Rs 266.10), Ambuja Cements (up 1.32% to Rs 114.85), Bharat Heavy Electricals (up 1.29% to Rs 1891.85), Reliance Industries (up 2.35% to Rs 2,653) edged higher from Sensex pack.
Hindustan Unilever rose 1.48% to Rs 250.85. Net profit of Hindustan Unilever declined 3.04% to Rs 380.95 crore on 19.14% rise in sales to Rs 3793.94 crore in Q1 March 2008 Q1 March 2007. The board of the company has approved the change in the financial year to April-March.
Reliance Communications declined 1.73% to Rs 574.70 while Bharti Airtel fell 2.67% to Rs 904.50. Reliance Communications said on Monday, 28 April 2008, it would offer unlimited national long distance calls within its network for a fixed rental with immediate effect. Earlier yesterday, sector leader Bharti Airtel slashed long distance and roaming tariffs by 43% effective 30 April 2008.
Reliance Natural Resources clocked the highest volume of 2.15 crore shares on BSE. Ispat Industries (1.71 crore shares), IFCI (1.56 crore shares), Indiabulls Securities (1.51 crore shares) and Reliance Petroleum (1.47 crore shares) were the other volume toppers in that order.
Reliance Capital clocked the highest turnover of Rs 317.11 crore on BSE. Sesa Goa (Rs 309.43 crore), Reliance Petroleum (Rs 295.31 crore), Reliance Natural Resources (Rs 270.24 crore) and Reliance Industries (Rs 231.64 crore) were the other turnover toppers in that order.
It its latest report on macroeconomic and monetary developments in 2007/08 released on Monday, 28 April 2008, RBI has said that the global food prices were likely to remain firm as supply side pressures did not appear to be abating. The central bank said steps takes by the government to rein in prices should help curb inflation. It, however, said the inflation risks on account of oil prices remain incipient.
RBI has noted that freely priced fuel items such as naphtha had increased substantially since February 2007 alongside rising global oil prices, while prices of petrol and diesel, which are government-controlled, had partially adjusted. But prices of kerosene and cooking gas had not been raised by the government for several years.
RBI felt there were some demand-side pressures. Domestic iron and steel prices saw a sharp increase in line with recent hardening in international steel prices, it said, while cement price rises could be attributed largely to strong demand from construction domestically. A survey of professional forecasters by the central bank showed that the Indian economy is expected to grow 8.1% in the 2008/09 fiscal year that began this month. In 2007/08, the gross domestic product is estimated to have grown 8.7%.
A cause for concern is the fall in business confidence index. A survey of 392 companies by Federation of Indian Chambers of Commerce and Industry (FICCI), showed that concerns about an economic slowdown, inflation and rising costs hurt business confidence of Indian firms during October-December 2007 period. The FICCI business confidence index declined to a new five-year low of 55.3 points in the third quarter of 2007/08, from 61.2 in the previous quarter.
On the flip side, a pointer to the fact that the long term India growth story remains intact is the outcome of the latest 2008 US-India Business Council (USIBC) survey, according to which, India is, and will continue to be, a premier destination for investment by US firms, with a large number of respondents rating future economic growth in India as highly sustainable. Meanwhile, the Lok Sabha is slated to pass the Finance Bill 2008-09 today, 29 April 2008.
The two-day US Federal Reserve policy meeting ends on Wednesday, 30 April 2008. The market expects the Fed to cut interest rates by 25 basis points to 2% and then signal that its rate-cutting cycle may be over for now in the face of mounting global energy and food inflation pressure.
US stocks ended flat on Monday, 28 April 2008, as a $23 billion takeover of Wm Wrigley Jr Co, the world's largest chewing gum maker, by Mars Inc, the maker of M&Ms candy, helped offset downbeat comments by influential investor Warren Buffett about the economy. Buffett said US could be mired in a longer and deeper recession than most people think.
Asian stocks were mixed today. Key benchmark indices in Hong Kong and China were up by between 1.05% to 1.4%. Key benchmark indices in Singapore, Taiwan and South Korea were down by between 0.64% to 2.07%. Japanese markets were closed for a national holiday.
European markets were mixed. France’s CAC 40 and Germany’s DAX and were down between 0.35%-0.56% while UK’s FTSE 100 rose 0.4%.
Market ends firm on IT-led surge
The market posted significant gains with buying, particularly, in IT and realty stocks, followed by decent gains in metal and other select counters jacking up the sentiment. However, the market witnessed sharp volatility within minutes of the commencement of the trading session. After resuming 35 points above its previous close of 17,051, the Sensex moved down 4 points and touched the day's low of 17,011. The index soon rebounded into positive territory on smart gains and rose sharply to an intra-day high of 17,425 in noon trades. While it moved in a range with a positive bias thereafter, the Sensex ended the session with gains of 363 points at 17,378. The Nifty moved up by 106 points to close at 5,196.
The market breadth was firm. Of the 2,770 stocks traded on the BSE, 1,586 stocks advanced, 1,121 stocks declined and 63 stocks ended unchanged. Among the sectoral indices, all the indices closed in positive territory. BSE Realty index rose 5.90%, the BSE IT index advanced 5.24% and the BSE Metal was up 3.64%. The BSE CD index, however, tumbled 2.31%, while the BSE CD, Teck and Oil & Gas index gained over 2% each. All the remaining indices gained ended with marginal gains.
IT pivotals among the index stocks led the upsurge. Tech Mahindra soared 10.51% at Rs902. While Satyam advanced 8.22% at Rs479.35, HCL Techno at Rs286.40, NIIT Technology moved up 7.27% at Rs137.95 and Infosys gained 5.15% at Rs1,750.75. Among the other movers of the IT Index, Mphasis added 4.97% at Rs237.55, Wipro scaled up 4.70% at Rs479.20, Patni Computer moved up by 4.70% at Rs479.20, Aptech rose 4.37% at Rs260.10, TCS climbed 3.15% at Rs910.80 and NIIT was up nearly 2.09% at Rs102.40.
Action was also seen in Sensex stocks. DLF flared up 8.57% at Rs725.85, Hindalco jumped by 6.44% at Rs198.20 and HDFC rose 5.95% at Rs2,881.45. Jaiprakash Associates at Rs266.10, Tata Steel at Rs808.90, SBI at Rs1,793, RIL at Rs2,653 and L&T at Rs3,007 gained 2-5% each.
Over 2.15 crore Reliance Natural Resources Ltd shares changed hands on the BSE followed by ISPAT Industries (1.71 crore shares), IFCI (1.56 crore shares), IB Securities (1.51 crore shares) and RPL (1.47 crore shares).
Reliance Capital clocked a turnover of Rs317 crore followed by Sesa Goa (Rs309 crore), Reliance Petroleum (Rs295 crore), Reliance Natural Resources Ltd (Rs270 crore) and RIL (Rs231 crore).
Post Market Commentary - Apr 29 2008
The Indian Market made a smart turnaround soon after the announcement of the monetary policy by the RBI in which it kept all the key interest rates unchanged but it raised the Cash Reserve Ratio by 25 basis point As per this, the scheduled banks required to maintain CRR of 8.25% with effect from the fortnight beginning May 24, 2008. But earlier there are rumors of hike in repo rate and revere repo rate but RBI beat all the expectations by keeping these rates unchanged. This led to the boosting of the sentiments among the investors and heavy buying was witnessed from the realty, metal and bakex indices baskets. In this review, RBI expects the economy to grew by 8-8.5% in 2008-09 also inflation remained a serious concern and as per RBI it would be brought down to around 5.5% in 2008-09 and the preference would be to bring it close to 5%. Though the market opened on a firm note but pared all its gains before the announcement of the policy but gained he momentum soon after the declaration of monetary policy review. The market breadth was strong as 1588 stocks closed in green while 1121 stocks closed in red.
The BSE Sensex closed higher by 362.50 points at 17,378.46 and NSE Nifty closed up by 105.85 points to close at 5,195.50. The BSE Mid Caps closed up by 79.55 points at 7,146.95 and Small Cap grew by 75.49 points to close at 8,785.31.
Major losers from the BSE are Grasim inds (6.16%), Welspun Guj (5.17%), India Infoline (4.01%), Idea Cellular (3.67%), Spice Tele (3.58%), United SPR (3.33%), Akruti City (3.12%), Bharti Airtel (2.79%).
Major gainers from the BSE are Bombay Dyeing (13.27%), Sesa Goa (12.56%), Tech Mahindra (10.51%), Titan inds (9.41%), DLF (8.57%), Satyam Comp (8.22%), Unitech (8.18%).
The Realty index increased drastically by 482.17 points to close at 8,650.24. Scrips that jumped are DLF (8.57%), Unitech (8.18%), HDIL (6.61%), Ansal Infra (5.72%), Parsvanath (3.60%), Omaxe (3.06%), Penland (2.86%), Mahindra Life (2.77%) and Sobha Dev (3.45%).
The Metal index surged 568.75 points to close at 16,192.97. Major gainers are Sesa Goa (12.56%), Hindalco inds (6.44%), Sterlite inds (4.77%), Nalco (4.37%), Tata Steel (4.01%), Bhushan Steel (2.72%), Ispat inds (2.64%) and Jindal Steel (2.31%).
The Capital Goods index closed up by 176.13 points at 13,931.17. Scrips that gained are Havells India (4.89%), Punj Lloyd (3.87%), Bharat Elec (3.27%), Suzlon Energy (2.93%), L&T (2.09%), Praj inds (1.61%) and BHEL (1.29%).
The Bankex index grew by 147.91 points to close at 8,964.75. Gainers are SBI (3.27%), Axis bank (2.74%), Oriental bank (2.65%), Canara bank (2.41%), Federal bank (2.38%), PNB (2.04%), Yes bank (1.91%) and Union bank (1.33%).
The Oil & Gas index closed higher by 231.24 points at 11,661.26. Scrips that grew are RPL (4.28%), Essar Oil (3.11%), RNRL (2.59%), Reliance inds (2.35%), BPCL (1.36%), IOCL (0.76%).
Pre Session Commentary - Apr 29 2008
The Indian Market is likely to have a positive opening due to mixed cues from the global markets. On Monday, the Indian market closed in red as the volatility gripped the market since the initial bell. The market was unable to sustain at higher levels and kept on moving between the positive and negative territory throughout the trading session. Also, the RBI’s monetary policy review and US Fed’s policy meeting on April 30 led the investors to take cautious approach through out the trading session. The market breadth was weak as 1374 stocks closed in red while 1295 stocks closed in green. The BSE Sensex closed lower by 110.02 points at 17,015.96 and NSE Nifty fell by 22.05 points to close at 5,089.65. We expect that the market may remain choppy during the trading session and all the eyes will be on the RBI’s Credit Policy, which is scheduled today and this announcement by RBI will give further direction to the market.
On Monday, the US market closed mixed. The Dow Jones Industrial Average (DJIA) closed lower by 20.11 points at 12,871.75 along with S&P 500 fell by 1.47 points to close at 1,396.37 while NASDAQ closed higher by 1.47 points at 2,424.40.
The Indian ADRS closed mixed. In technology sector, Infosys fell by (1.92%) along with Satyam by (1.06%) and Wipro by (0.63%). In banking sector, ICICI bank and HDFC Bank dropped by (3.86%) and (2.86%) respectively. In telecommunication sector, Tata Communication and MTNL increased by (0.40%) and (0.36%) respectively.
Today the major stock markets in Asia are trading mixed. Hang Seng is trading higher by 75.05 points at 25,738.34 along with Japan’s Nikkei trading up by 30.90 points at 13,894.37 and Taiwan Weighted trading at 9,057.34 up by 18.05 points.
The FIIs on Monday stood as net buyer in equity while net seller in debt. The gross equity purchased was Rs3,414.90 Crore and the gross debt purchased was (Rs186.90 Crore) while the gross equity sold stood at Rs3,066.10 Crore and gross debt sold stood at Rs236.30 Crore. Therefore, the net investment of equity reported was Rs348.80 Crore and net debt was (Rs423.20 Crore).
Today, Nifty has support at 4,867 and resistance at 5,198 and BSE Sensex has support at 16,642 and resistance at 17,482.
Trading Calls - Apr 29 2008
Nifty (5090) Sup 5040 Res 5150
Buy REL (1424) SL 1400
Target 1455, 1465
Buy RPL (194) SL 190
Target 200, 202
Buy Titan (1190) SL 1175
Target 1220, 1230
Sell Tech M (814) SL 822
Target 798, 794
Sell NIIT Tech (129) SL 134
Target 121, 119
Reddy to wait?
“If you wait to do everything until you're sure it's right, you'll probably never do much of anything.”
Will he, won’t he? The market is still divided over what action the RBI will take in today's annual policy meeting. A hike could well provide the bears a fresh opportunity to nail the bulls. On the other hand, a status quo (waiting for the Fed to act first) will perk up the mood on the street. The key indices lost ground yesterday as investors developed cold feet amid fears that the RBI may hike the repo rate by 25 bps to contain inflation. As a result, the Nifty failed to cross the 200 DMA of 5150 yesterday.
Meanwhile, a survey of professionals done by the RBI shows that the Indian economy will grow at a healthy 8.1% in FY09. If indeed GDP grows at 8% in the current fiscal it would not be a bad feat at all given the slew of headwinds that we are facing right now. The survey also reveals that corporate profits will clock a 25% growth in FY09, which again would be quite commendable. The central bank also believes that inflation will moderate in the second half, though high crude oil prices will continue to pose a risk.
The market appears to have factored in most bad news, both local as well as global. As a result, the bulls may remain in command in the near term, especially if global markets too hold their nerve. Some more grim developments lurking somewhere could spark renewed sell-off. For today, we expect a cautious start and a lackluster trading till noon, when the RBI will announce its monetary policy for the year 2008-09. Select stock centric action will continue based on the results and other company specific announcements.
Key Results Today: Aban Offshore, Alstom Projects, Atlas Copco, Aurionpro Solutions, Bhushan Steel, Cadila Healthcare, Cairn India, Castrol India, CEAT, Esab India, Gateway Distriparks, Gayatri Projects, Grasim, Hanung Toys, IFCI, ING Vysya Bank, JK Tyre, Jyothy Labs, Maharashtra Seamless, Mirc Electronics, Nagarjuna Fertilizers, NALCO, Nestle, Patni, Pioneer Embroideries, Raymond, Reliance Capital, Subex, Taj GVK Hotels, Tata Sponge, UTV, Venus Remedies, Viceroy Hotels and Vishal Retail.
FIIs were net sellers of Rs383.3mn (provisional) in the cash segment yesterday while local institutions were net sellers of Rs1.67bn. In the F&O segment, foreign funds were net buyers of Rs4.55bn. On Friday, FIIs were net buyers of Rs3.49bn in the cash segment while Mutual Funds were net sellers of Rs734mn.
Asian markets were trading mixed this morning. The Hang Seng in Hong Kong was up 289 points or 1.1% at 25,955 while the Kospi in Seoul was down 6 points or 0.3% at 1817. The Straits Times in Singapore dropped 26 points or 0.8% at 3175 while the Shanghai Composite in China rose 46 points or 1.3% to 3521 and the Taiex in Taiwan was down 50 points or 0.6% at 9029.
Benchmarks elsewhere in Asia fell barring Malaysia, the Philippines and China. Japan's markets are closed for a public holiday.
US stocks closed almost unchanged on Monday as investors turned cautious ahead of Wednesday's Fed policy announcement. Stocks had risen earlier after billionaire Warren Buffett financed the $23bn takeover of Wm. Wrigley Jr. Co. and investor Kirk Kerkorian bought a stake in Ford Motor.
Wrigley, the world's biggest maker of chewing gum, jumped the most since at least 1980 after Mars agreed to acquire the company at a 28% premium to its closing price last week. Ford shares rallied after Kerkorian said he bought 4.7% of the second-largest US automaker and plans to buy more.
Microsoft shares slumped for a second day, helping drag the S &P 500 Index and Dow Jones Industrial Average lower, on speculation that the world's largest software company will have to increase its bid to acquire Yahoo.
The S&P 500 ended virtually flat at 1,396.37. The Dow dropped 20 points, or 0.2%, to 12,871.75. The Nasdaq Composite Index finished barely changed at 2,424.4. The Russell 2000 Index, an index of small-cap companies, gained 0.5% for its fourth consecutive advance.
Market breadth was positive. About five stocks gained for every four that fell on the New York Stock Exchange.
Stock gains were limited and tapered off by the close, as investors geared up for the two-day FOMC meeting starting Tuesday. The Fed is expected to cut interest rates again, and then perhaps signal that it is done for the time being.
US light crude oil for June delivery rose 23 cents to settle at $118.75 a barrel in New York after hitting a record $119.93 earlier in electronic trading. Meanwhile, the national average price for a gallon of regular unleaded gas hit an all-time record of $3.603, AAA reported.
COMEX gold for June delivery rose $5.80 to settle at $895.50 an ounce. The dollar gained versus the euro and yen. Treasury prices advanced, lowering the yield on the benchmark 10-year note to 3.82% from 3.87% late on Friday.
Candy maker Mars is buying gum maker Wrigley in an all-cash deal worth nearly $23bn. The deal will eventually make Wrigley a subsidiary of Mars. Warren Buffett's Berkshire Hathaway is making a minority equity investment in the new subsidiary. Wrigley shares surged 23%.
Kirk Kerkorian's Tracinda Corp. is offering $170mn to buy an additional 20mn shares of Ford. Tracinda already owns 100mn Ford shares. Shares of the US auto giant jumped 9.5%.
Continental said it wasn't interested in entering into a merger agreement with another company right now, surprising United Airlines' parent UAL, which had been in advanced talks with the carrier. However, reports say Continental has been in talks with American Airlines' parent AMR about an arrangement that would involve an alliance but not a merger.
Verizon Communications reported higher quarterly earnings that met analysts' estimates on higher revenue that was short of expectations. Shares gained 2.5%. RadioShack reported lower quarterly earnings and sales that nonetheless topped forecasts. Shares slumped 13.5%.
Across the Atlantic, banks helped European shares gain ground for the fourth session in a row. Oil companies and miners also performed well. The pan-European Dow Jones Stoxx 600 index rose 0.6% to 323.62, building on strong gains made on Friday when the index recaptured levels last seen in February.
Germany's DAX 30 rose 0.4% to 6,925.33 and the French CAC-40 advanced 0.7% to 5,012.75, while a poor performance from supermarket chains led the UK's FTSE 100 to close nearly unchanged at 6,090.40.
In the emerging markets, the Bovespa in Brazil gained 0.75% to 65,677 while the IPC index in Mexico was down 1.2% at 30,623. The RTS index in Russia rose 1% to 2150 while the ISE National 30 in Turkey finished flat at 54,167.
All eyes on RBI
In a lackluster trading session, both the key indices struggled to find any direction resulting into sideways movement. Profit booking was witnessed key index heavyweights like RIL, ICICI Bank and Tata Steel. Also, some consolidation was seen in today’s trade after recording around 4% returns last week. Even, the volumes dried up ahead of the outcome of RBI’s monetary policy meet on Tuesday.
As large-caps were seen consolidating, momentum continued in select-side counters with sugar and fertilizers stocks among the major gainers. Oil & gas, IT and banking stocks were among the major laggards dragging the benchmark Sensex down by 110 points at 17,016 and Nifty lower by 22 points at 5,090.
ICICI Bank dropped by over 2% to Rs894. Reports said that the company made additional provisions of US$45mn for mark to market losses on its credit derivative obligations and credit-linked note portfolio in February and March 2008. The scrip touched an intra-day high of Rs947 and a low of Rs890 and recorded volumes of over 14, 50, 000 shares on BSE.
Reliance Industries was down by over 1% to Rs2,592. Reports said that the Government approved an oil and gas development plan of the company in its D6 block off the east coast. The scrip touched an intra-day high of Rs2,650 and a low of Rs2,583 and recorded volumes of over 6, 00, 000 shares on BSE.
ONGC reduced by over 0.5% to Rs1,047 following reports stating that the company is expecting to seal the deal for a stake in the South pars block during next week visits of Iranian president. The scrip touched an intra-day high of Rs1,064 and a low of Rs1,041 and recorded volumes of over 2, 00, 000 shares on BSE.
Essar Oil fell by over 3% to Rs271. Essar E&P, a subsidiary of the company, bid for two shallow water offshore blocks in Australia, said reports. The scrip touched an intra-day high of Rs283 and a low of Rs267 and recorded volumes of over 26, 50, 000 shares on BSE.
Siemens took a huge fall by 10% to Rs580 after the company announced a decline in net profit by 98.5%. The scrip touched an intra-day high of Rs620 and a low of Rs542 and recorded volumes of over 23, 50, 000 shares on NSE.
KPIT Cummins fell sharply by 11.5% to Rs94 after the company announced its Q4 results with MTM loss of Rs89cr as on 31st March. The scrip touched an intra-day high of Rs107 and a low of Rs89 and recorded volumes of over 14, 50, 000 shares on NSE.
Biocon was down by 0.5% to Rs483. The company has plans to set up its own R&D subsidiary arm in the current fiscal, according to reports. The scrip touched an intra-day high of Rs494 and a low of Rs480 and recorded volumes of over 1, 00, 000 shares on NSE.
Cairn India was up by 1% to Rs258 after the company announced that it managed to extract 200mn barrels of oil from Andhra reserves which were estimated at 101mn barrels. The scrip touched an intra-day high of Rs263 and a low of Rs256 and recorded volumes of over 19, 50, 000 shares on NSE.
Last week’s intermediate uptrend was halted due to profit taking ahead of the RBI’s policy meet on Tuesday. FIIs have largely been in the sidelines, which is a cause of concern. Globally, we may well have a 25 bps rate hike from the Federal Reserve, on April 30. But, our market will only be able to react to the Fed decision and to whatever comments it makes on May 2, as the markets will be shut on Thursday on account of Maharashtra Day.
Corporate News
GAIL would be a part of the consortium building the US$7.6bn Turkmenistan-Afghanistan-Pakistan-India gas pipeline by 2015. (BL)
TCS has bagged Rs4.5bn contract from Scottish Water, a UK based utility firm. (BS)
Bharti Airtel has cut STD tariffs to a flat Rs1.5/minute from up to Rs2.65/minute and roaming charges by 43% for incoming calls. (ET)
RCom plans to offer free unlimited national long-distance calls for a monthly rent of Rs440 for post-paid and Rs496 for pre-paid customers. (Mint)
IOC is seeking board approval for doubling of its borrowing limit to create a war chest of Rs800bn to fund a major acquisition in E&P sector. (FE)
Tata Steel is joining hands with MMTC for acquiring mining assets abroad through a special purpose vehicle (SPV). (ET)
M&M enters spares, used-car markets, plans to invest ~Rs2.5bn in this segment. (ET)
Dishman Pharma may divest stake in its pharmaceutical SEZ to private equity funds or list it on the bourses in 2009-10. (Mint)
Tata Motors is planning a new platform for a compact car code-named X4. (DNA)
US Patent and Trademark Office has rejected Pfizer’s request for reissue of patent in Lipitor case against Ranbaxy. (BS)
IVR Prime Urban Developers is planning to invest Rs6.86bn in two projects in South India. (BS)
Mindtree Consulting and Satyam Computers have bagged a three year contract from Arcelor Mittal. (BS)
M&M is planning to pursue private placement route for raising funds for its inorganic growth plans. (BS)
KPIT Cummins has reported Rs900mn MTM losses in forex derivatives transactions. (BS)
Sun Network and Zee Entertainment have dethroned Star group as the leading Asia Pacific pay broadcaster. (BS)
Hinduja Group and ONGC Videsh have won approval of Iranian authorities to conduct due diligence for taking stakes in one of the largest oil and gas fields in the Persian Gulf nation. (BL)
BHEL-NTPC joint venture is planning to enter equipment manufacturing business. (BL)
Lanco Infratech has said that there were no inconsistencies in its successful bid for Sasan UMPP. (FE)
Economic News
RBI has said that performance of the manufacturing sector is expected to be lower in Q1 FY09 compared to Q1 FY08. (BS)
RBI has exempted joint ventures and overseas subsidiaries of banks from an investment limit on affiliates. (BS)
RBI has allowed banks and brokers as the first participants to start currency futures on existing exchanges. (BS)
Almost 32,000 petrol pump dealers have threatened to go on a strike from May 17, 2008 if the commission they get on fuel sales is not increased. (BS)
Government is considering imposing a 15% export duty on export of steel products. (BS)
ICAI Accounting Standard’s board has cleared the proposed accounting standard on disclosure of financial instruments (AS-32). (BL)
The group of ministers examining finances of the power sector has proposed that the government divest up to 49% in profitable central power sector companies that include NTPC, PFC, REC, PGCIL and NHPC. (FE)
The total production capacity of the Indian cement industry has gone up to 190mn tons for FY08 as compared to 167mn tons in FY07. (FE)
The Government plans to penalize drug makers who pay wholesalers and chemists over and above the fair margin notified by it. (ET)
The Government has decided not to revive the four state-owned vaccine units whose licences were recently suspended. (ET)
Flowers will be eligible for an additional duty credit equivalent to 2.5% of FOB value of exports over and above the credit available under Vishesh Krishi and Gram Udyog Yojana. (ET)
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