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Thursday, July 31, 2008
BSE Bulk Deals to Watch - July 31 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
31/7/2008 532981 ANU LABS H K STOCK SERVICES PVT LTD B 99121 346.65
31/7/2008 532981 ANU LABS H K STOCK SERVICES PVT LTD S 99121 341.00
31/7/2008 590081 BRAHMANAND WILFUL FINANCE AND INVESTMENT S 153500 17.39
31/7/2008 532816 BROADCAST CONSOLIDATED SECURITIES LTD B 100000 34.00
31/7/2008 532816 BROADCAST MERRILL LYNCH CAPITAL MARKET ESPANA S A SVB S 310000 34.00
31/7/2008 526817 CHEVIO WINFIN FINANCIAL CONSULTANTS PVT. LTD. B 24210 254.75
31/7/2008 511742 CHOKHANI SEC VISHAL KANTILAL JAIN B 29800 16.51
31/7/2008 532764 GWALIOR CHEM H.J.SECURITIES P.LTD. B 403555 113.88
31/7/2008 532764 GWALIOR CHEM H.J.SECURITIES P.LTD. S 403555 114.05
31/7/2008 530885 JAISAL SECUR VENUGOPAL REDDY S B 25000 36.90
31/7/2008 530885 JAISAL SECUR CANOS TRADING PVT LTD. S 25000 36.90
31/7/2008 516078 JUMBO BAG LT VENKATESWARA CAPITAL MANAGEMEN B 100028 39.60
31/7/2008 532283 KASHYAP TEC AYODHYAPATI INVESTMENT PVT LTD B 2319324 1.45
31/7/2008 532283 KASHYAP TEC AYODHYAPATI INVESTMENT PVT LTD S 2319324 1.47
31/7/2008 513121 ORICON ENT VENUS MOULDED BOARDS PVT LTD B 49700 53.50
31/7/2008 513121 ORICON ENT KSM SECURITIES AND FINANCE PRIVATE LIMITED S 50000 53.50
31/7/2008 532886 SEL MANUF B K SHAH CO B 102680 640.35
31/7/2008 532886 SEL MANUF H.J.SECURITIES P.LTD. B 93881 658.94
31/7/2008 532886 SEL MANUF B K SHAH CO S 102678 642.20
31/7/2008 532886 SEL MANUF H.J.SECURITIES P.LTD. S 93881 658.83
31/7/2008 532311 TUTIS TECH SONAL MANISH SHAH B 150000 20.18
Inflation up .. home loans up!
Even as last week’s marginal decline of 0.02 % triggered hopes of a gradual ease, inflation for the week ending July 19 hovered yet again around 12%. The rise in inflation rate is being mainly attributed to an overall increase in the price of primary articles and food products. As a result, various banks have immediately announced an increase in their rates of lending.
The exact inflation figure for week ended July 19 is 11.98%. For the week before that it was 11.89%. The figure for May 24 has also been revised to 8.9%. It has been rising unabatedly after petrol prices were increased by the Government on June 5.
Inflation stood at 4.65 % in the corresponding week a year ago.
The break up of the inflation is as follows:
# Fuel, power, light index remains unchanged
# Primary articles are up by 0.1%
# Cereals were costlier by 0.1% while Pulses saw a slight climbdown
# Basic metals and alloys are costlier by 0.1%
# Fruits and vegetables were slightly less expensive
# Edible oil is down by 0/.3% and Cotton textile is up by 0.2%
This is the first official data on inflation after the Reserve Bank increased the short-term lending (repo) rate by 50 basis points to 9 per cent and also raised the mandatory deposits (CRR) that banks have to park with it by 25 basis points to cool down the rate of price rise.
However, the exact effect of these measures will be known after some time only as official data is released with a two week lag and hike in CRR would come into effect only after August 30.
Indices close flat
The market had a flat close as traders continued to book profits at the expiry of July derivative contracts.
After a cautious start at 14,359, above 72 points its previous close, the Sensex came under selling pressure and slipped into the red below the 14,200 mark amid weakness in several Asian indices to touch the day's low of 14,162, down 125 points. The market stabilised by afternoon and continued its northwards journey on healthy buying in heavyweights, metal and oil & gas stocks. The market remained choppy thereafter and moved in a range with a mixed bias. Strong optimism in frontline, metal, oil & gas and power stocks saw the index touch an intra-day high of 14,370, up 28 points from the day's low. However, profit bookings at the close saw the Sensex end the session with a marginal gain of 69 points at 14,356, while Nifty added 19 points to close at 4,333.
The market breadth was negative. Of the 2,697 stocks traded on the BSE, 1,326 stocks declined, 1,296 stocks advanced and 75 stocks ended unchanged. Among the sectoral indices, the BSE Metal index gained 1.68%, while the BSE Oil & Gas index, the BSE Power index and the BSE Realty index were up over 0.75% each. The BSE HC index, the BSE Teck index, the BSE IT index and the BSE Bankex were marginally down.
Among the heavyweights, Tata Power gained 4% at Rs1,160.10, Tata Steel soared 3.95% at Rs654.95, DLF surged 3.79% at Rs509.30, State Bank of India moved up by 2.03% at Rs1,414.75, Reliance Industries scaled up 1.99% at Rs2,206.20, Sterlite Industries was up 1.50% at Rs631.30, Mahindra & Mahindra advanced by 1.29% at Rs520.55 and Ranbaxy Laboratories gained 1.29% at Rs499.10. However, Tata Motors slipped 3.13% at Rs403.25, followed by Grasim Industries, which was down 2.78% at Rs1,800.45. Maruti Suzuki India slumped by 2.36% at Rs574.90, Wipro shed 1.53% at Rs416 and Bharti Airtel lost 1.33% at Rs799.15.
Over 3.72 crore Reliance Natural Resources shares changed hands on the BSE followed by Birla Cotsyn (1.79 crore shares), Ispat Industries (1.30 crore shares), BL Kashyap & Sons(0.88 crore shares) and Chambal Fertilisers (0.83 crore shares).
Reliance Natural Resources was the most actively traded counter with a turnover of Rs370 crore on the BSE followed by Reliance Capital (Rs344 crore), Reliance Industries (Rs182 crore), Tata Steel (Rs163 crore) and Reliance Infra (Rs135 crore).
NSE Bulk Deals to Watch - July 31 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
31-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,PRASHANT JAYANTILAL PATEL,BUY,2582610,10.53,-
31-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,TRANSGLOBAL SECURITIES LTD.,BUY,1390545,10.36,-
31-JUL-2008,BROADCAST,Broadcast Initiatives Lim,CONSOLIDATED SECURITIES LTD,BUY,100000,34.00,-
31-JUL-2008,BROADCAST,Broadcast Initiatives Lim,Esdotcom Support & Software Services Pvt Ltd,BUY,130010,34.00,-
31-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,BUY,130490,118.44,-
31-JUL-2008,GOLDTECH,Goldstone Tech Ltd.,SUMMIT COMMUNICATION PRIVATE LIMITED,BUY,100000,119.85,-
31-JUL-2008,GWALCHEM,Gwalior Chemical Industri,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,142056,110.04,-
31-JUL-2008,GWALCHEM,Gwalior Chemical Industri,TRANSGLOBAL SECURITIES LTD.,BUY,161318,114.38,-
31-JUL-2008,GWALCHEM,Gwalior Chemical Industri,YUVAK SHARE TRADING PVT LTD,BUY,123502,114.28,-
31-JUL-2008,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,6812923,26.02,-
31-JUL-2008,JAYSREETEA,Jayashree Tea Ltd.,JAYASHREE MOHTA,BUY,77245,150.02,-
31-JUL-2008,LICHSGFIN,LIC Housing Finance Ltd,MORGAN STANLEY & CO INT LTD A/C MORGAN STANLEY DEAN WITTER M,BUY,758200,323.60,-
31-JUL-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,BUY,2391875,39.26,-
31-JUL-2008,RENUKA,Shree Renuka Sugars Limit,MORGAN STANLEY & CO INT LTD A/C MORGAN STANLEY DEAN WITTER M,BUY,1400000,125.61,-
31-JUL-2008,SELMCL,SEL Manufacturing Company,B K SHAH CO KETAN BHAILAL SHAH,BUY,106887,640.99,-
31-JUL-2008,STERLINBIO,Sterling Biotech Ltd.,EMERALD FINSTOCK PRIVATE LIMITED,BUY,1500000,234.63,-
31-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,PRASHANT JAYANTILAL PATEL,SELL,2582610,10.49,-
31-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,TRANSGLOBAL SECURITIES LTD.,SELL,1382699,10.38,-
31-JUL-2008,BROADCAST,Broadcast Initiatives Lim,MERILL LYNCH CAPITAL MARKET ESPANA S.A SVB,SELL,290000,34.00,-
31-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,SELL,130490,118.74,-
31-JUL-2008,GWALCHEM,Gwalior Chemical Industri,TRANSGLOBAL SECURITIES LTD.,SELL,162315,114.47,-
31-JUL-2008,GWALCHEM,Gwalior Chemical Industri,YUVAK SHARE TRADING PVT LTD,SELL,119735,114.26,-
31-JUL-2008,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,6030621,26.02,-
31-JUL-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,SELL,2391875,39.28,-
31-JUL-2008,SELMCL,SEL Manufacturing Company,B K SHAH CO KETAN BHAILAL SHAH,SELL,106887,640.82,-
31-JUL-2008,STERLINBIO,Sterling Biotech Ltd.,DWS INVEST DWS INVEST BRIC PLUS,SELL,2150000,240.44,-
Post Session Commentary - July 31 2008
The domestic market finally managed to end the day with gains after it witnessed volatility for throughout of trading session and remained in a narrow range ahead of F&O expiry day and inflation number for the week ended 19th July 2008, which has to come out today evening. Market opened in upbeat note tracking favorable global cues from global markets but was not able to sustain the momentum and slipped to negative territory soon after start . Further, market turned choppy and skipped up and down. Alternative shifts of buying and selling were witnessed during the trading hours but strong buying support during the final hours of trading led the market to close in green. NSE Nifty maintained the level of 4,300 and BSE Sensex maintained 14,300 level. On the sectoral front, Metal, Oil & Gas, Capital Goods and Reality stocks gained favor from the market as witnessed buying from these baskets. However, Pharma, IT and Reality stocks observed selling pressure. The market breadth was negative as 1296 stocks closed in green while 1326 stocks closed in red and 75 stocks remained unchanged.
The BSE Sensex closed higher by 68.54 points at 14,355.75 and NSE Nifty ended up by 19.40 points at 4,332.95. The BSE Mid Caps closed with losses of 13.64 points at 5,567.37 and Small Cap ended down by 14.81 points 6,912.79. The BSE Sensex touched intraday high of 14,369.59 and intraday low of 14,161.76.
Gainers from the BSE are Tata Power (4.00%), Tata Steel (3.95%), DLF Ltd (3.79%), SBI (2.03%), Reliance (1.99%), Sterlite In (1.50%), M&M Ltd (1.37%), Ranbaxy Lab (1.29%), Hindalco (0.68%) and BHEL (0.61%).
Lossers from the BSE are Tata Motors (3.13%), Grasim Indus (2.78%), MAruti Suzuki (2.36%), Wipro Ltd (1.53%), Bharti Airtel (1.33%), Infosys Tech (1.20%), ACC Ltd (1.12%), TCS Ltd (0.72%), Relaince Infra (0.58%) and Reliance Com Ltd (0.47%).
The Metal index closed up by 213.91 points at 12,912.61. Gainers are NMDC Ltd (4.98%), Tata Steel (3.95%), Steel Authority (3.42%), Sterlite In (1.50%), Ispat Industries (1.36%), and Sesa Goa Ltd (1.25%).
The Oil & Gas index ended up by 121.74 points at 9,729.48. As Cairn India (2.55%), Reliance (1.99%), Essar Oil Ltd (0.83%), ONGC (0.59%), Gail India (0.44%) and Reliance Pet (0.30%) closed in positive territory.
The BSE Capital Goods index gained 55.43 points to close at 11,683.80. Major gainers are Elecon Eng C (4.73%), Seimens Ltd (4.19%), Aiaengineer (3.51%), Usha Martin (3.51%), Everest Kanto (2.31%) and Suzlon Energy (1.83%).
The BSE Reality index ended higher by 37.13 points at 5,079.01. As DLF Ltd (3.79%), Mahindra Life (3.24%), Penland Ltd (2.56%), Sobha Dev (2.49%), Omaxe Ltd (2.10%), Unitech Ltd (0.86%), and Pheonix Mill (0.73%) closed in positive territory.
The BSE Pharma index closed lower by 45.88 points at 4,162.03. Lossers are Sterl Biotec (13.36%), Matrix Labs (3.54%), Bilcare Ltd (3.25%), Dr Reddy’s Lab (2.78%), Wockhardt Ltd (2.48%), Glenmark Pharma (2.24%), and Sun Pharma (1.78%).
The BSE IT index lost 32.52 points to close at 3,689.57. Major losers are Patni Computer (3.23%), Financ Tech (3.09%), Moser Bayer (3.07%), Aptech Ltd (2.04%), Wipro Ltd (1.53%) and HCL Tech (1.47%).
Market extends gains
The key benchmark indices extended yesterday (30 July 2008)’s sharp gains ending marginally higher amidst volatility as futures & options contracts for July 2008 series expired today. However, the market breadth turned negative from earlier strong breadth. Crude oil surged by more than $4 a barrel yesterday, 30 July 2008. Tata Power Company and Tata Steel rose close to 4%.
Banking shares were mixed ahead of the inflation data for 12 months to 19 July 2008 to be released after trading hours today, 31 July 2008. Metal stocks gained. Healthcare and IT stocks fell.
The 30-share BSE Sensex rose 68.54 points or 0.48% at 14,355.75. At the day’s low of 14,161.76, the Sensex lost 125.45 points in afternoon trade. Sensex hit a high of 14,369.59 in late trade. At the day's high, the Sensex rose 82.38 points.
The broader based S&P CNX Nifty was up 19.40 points or 0.45% to 4,332.95. Nifty August 2008 futures were at 4337, at a premium of 4.05 points as compared to spot closing of 4332.95.
The BSE clocked the turnover of Rs 5,047 crore as compared to Rs 5,353.99 crore on 30 July 2008. NSE's futures & options (F&O) segment turnover was Rs 64,640.25 crore, which was higher than Rs 58,543.91 crore on Wednesday, 30 July 2008.
The barometer index BSE Sensex is down 5,931.24 points or 29.23% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,851.02 points or 32.3% away from its all-time high of 21,206.77 struck on 10 January 2008.
The market breadth turned negative from earlier strong breadth with 1,296 shares advancing as compared to 1,326 that declined on BSE. 75 remained unchanged.
Among the 30-member Sensex pack, 16 gained while the rest declined.
The BSE Mid-Cap index fell 0.24% to 5,567.37 and BSE Small-Cap index declined 0.21% to 6,912.79. Both these indices underperformed Sensex.
BSE Metal index (up 1.68% to 12,912.61), BSE Oil & Gas (up 1.27% to 9,729.48), BSE Power index (up 0.78% to 2,574.27), BSE Realty index (up 0.74% to 5,079.01), BSE Consumer Durables index (up 0.73% to 3,685.84), BSE Capital Goods index (up 0.48% to 11,683.80) outperformed Sensex.
BSE HealthCare (down 1.09% to 4,162.03), BSE Teck index (down 0.99% to 3,000.41), BSE IT index (down 0.87% to 3,689.57), BSE Bankex (down 0.1% to 6,516.41), BSE Auto index (up 0.18% to 3,679.51), BSE FMCG index (up 0.28% to 2,139.18), BSE PSU index (up 0.44% to 6,706.14), underperformed Sensex.
As per the provisional figures on BSE, foreign institutional investors (FII)'s bought shares worth Rs 494.87 crore and domestic funds bought shares worth Rs 320.57 crore today, 31 July 2008.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 1.99% to Rs 2,206.20.
IT stocks fell. Infosys (down 1.2% to Rs 1,583.30), Tata Consultancy Services (down 0.72% to Rs 832.55) and Wipro (down 1.53% to Rs 416) edged lower. India’s third largest IT exporter by sales Satyam Computer Services was flat at Rs 380.30.
Healthcare stocks fell. Cipla (down 0.61% to Rs 218.70), Dr Reddy’s Laboratories (down 2.78% to Rs 569.20), Wochardt (down 2.48% to Rs 186.85) edged lower. India’s largest drugmaker by sales Ranbaxy rose 1.29% to Rs 439.10.
Metal stocks rose. Hindalco Industries (up 0.68% to Rs 141.10), Steel Authority of India (up 3.42% to Rs 140.70), Sterlite Industries (up 1.5% to Rs 631.80) and Tata Steel (up 3.95% to Rs 654.95) edged higher.
Banking shares were mixed ahead of the weekly inflation data, to be released after market hours today, 31 July 2008. India’s largest private sector bank by net profit ICICI Bank declined 0.07% to Rs 634.85. India’s largest commercial bank State Bank of India rose 2.03% to Rs 1,414.75.
HDFC Bank, India's second largest private sector bank in terms of operating income, rose 0.25% to Rs 1,095.25.
Grasim Industries (down 2.78% to Rs 1,800.45), Bharti Airtel (down 2.46% to Rs 790), Maruti Suzuki India (down 2.36% to Rs 574.90), edged lower from Sensex pack.
Tata Power Company (up 4% to Rs 1,160.10), DLF (up 3.79% to Rs 509.30), Mahindra & Mahindra (up 1.37% to Rs 520.55), NTPC (up 0.79% to Rs 172.25), Ranbaxy Laboratories (up 1.29% to Rs 499.10), edged higher from Sensex pack.
Tata Motors, the country’s top truck manufacturer in terms of sales lost 3.13% to Rs 403.25 after the company reported 30.10% fall in net profit to Rs 326.11 crore on 14.40% rise in net sales to Rs 6928.44 crore in Q1 June 2008 over Q1 June 2007. The company announced the results during trading hours yeserday, 30 July 2008, when the stock had risen 4.91% to Rs 416.30.
India’s largest cigarette maker in terms of sales ITC was flat at Rs 187.80. After market hours yesterday, 30 July 2008, the company reported 4% drop in net profit at Rs 748.67 crore on 18% growth in net turnover to Rs 3,900 crore in Q1 June 2008 over Q1 June 2007. The drop in net profit was attributed to the increase in excise duties on non-filter cigarettes in the Union Budget 2008, steep rise in commodity prices and store rentals.
Reliance Natural Resources clocked the highest volume of 3.72 crore shares on BSE. Birla Cotsyn (1.79 crore shares), Iapat Industries (1.3 crore shares), Kashyap Technologies (88.35 lakh shares) and Chambal Fertilisers and Chemicals (83.17 lakh shares) were the other volume toppers in that order.
Reliance Natural Resources clocked the hoghest turnover of Rs 370.34 crore on BSE. Reliance Capital (Rs 344.41 crore), Reliance Industries (Rs 182.77 crore), Tata Steel (Rs 163.03 crore) and SEL Manufacturing (Rs 151.18 crore) were the other turnover toppers in that order.
On the New York Mercantile Exchange, September 2008 crude surged $4.58, or 3.75%, to $126.77 a barrel yesterday, 30 July 2008 after data showed a surprise drawdown in gasoline stocks last week.
US markets surged yesterday, 30 July 2008 after encouraging jobs data and the central bank's attempts at boosting liquidity in the financial markets offset a surge in oil prices. The Dow Jones jumped 186.13 points, or 1.63%, to 11,583.69. The Standard & Poor's 500 index rose 21.06 points, or 1.67%, to 1,284.26, and the Nasdaq Composite index advanced 10.10 points, or 0.44%, to 2,329.72.
European markets which opened after Indian market were positive. France’s CAC 40, Germany’s DAX and UK’s FTSE 100 were down by between 0.64% to 1.11%.
Asian markets were trading mixed today, 31 July 2008. Key benchmark indices in China and Taiwan were down by between 0.65% and 1.25%. However, indices in Hong Kong, Japan Singapore and South Korea were up by between 0.07% and 1.08%.
Back home, rally in global equities and fall in oil prices aided a rebound on the domestic bourses yesterday, 30 July 2008. The 30-share BSE Sensex jumped 495.67 points or 3.59% at 14,287.21 and the broader based S&P CNX Nifty jumped 123.70 points or 2.95% at 4,313.55, on that day.
Morning Call - July 31 2008
Market Grape Wine :
In House :
Nifty at a support at 4260 4190 with resistance at 4322 4378 levels.
Cash: Buy ABB above 794 target 845 with S/L 770
Cash: Buy CIPLA above 222 target 234 with S/L 217
Future: Sell Zee Below 208 target 195 with S/L 216
Future: Buy RPOWER above 160 targets 170 with S /L 156.
Out House:
Markets at a support of 14014 & 13898 levels with resistance at 14341 & 14441 levels .
F&O Expiry today : Markets o be very choppy and volatile maintain strict stop loss .
Buy : INFY & Satyam
Buy : Adalbs
Buy : SesaGoa
Buy : RelInfra & Relcap
Buy : LNT
Buy : IBulls & IBullInfra
Buy : SBIN
Buy : Aftekinfo
Buy : Core project
Dark Horse : Sesa Goa , IBulls , RIL , Wipro , Adalbs , SBIN , LNT , Core & INFY
Grey Market - Nu Tek India, Vishal Information Technolgoies
Vishal Information Technologies 140 to 150 4 to 6
NU TEK India Ltd. 170 to 192 14 to 16
Pre Session Commentary - July 31 2008
The Indian Market is expected to have positive opening as US markets closed with gains and Asian markets are trading mixed. On Wednesday, the Indian market closed heavy gains due to strong buying over the counters led by favorable global cues global cues and steep drop in crude oil price. The domestic market opened sharply higher tracking strong cues from the global markets. Further, market traded sharply higher without any sign of weakness and continued to gain ground through out of the trading session. NSE Nifty gained around 3% and ended above 4,300 mark and BSE Sensex closed with gains of more than 3% and ended above 14,200 level. All indices except FMCG closed in green. Out of which, Bank and Reality indices rallied to close with a gain of more than 5%. Along with this, the Metal, Capital Goods, Oil & Gas, IT and Power stocks also witnessed sustained buying from these baskets. The BSE Sensex closed higher by 495.67 points at 14,287.21 and NSE Nifty ended up by 127.35 points at 4,317.20. We expect that market may remain volatile during the trading session ahead of F&O expiry day and inflation number for the week ended 19th July 2008, which has to come out today evening.
On Wednesday, the US market was closed with gains influenced by the latest ADP employment report that showed an unexpected 9,000 increase in July private non-farm jobs. A news about Fed’s extension of the length of its Term Securities Lending Facility program also added positive sentiment. These entire positive cues off sets the surge in crude. Crude advanced $4.58 to settle at $126.77 a barrel on the NYMEX.
The Dow Jones Industrial Average (DJIA) closed higher by 186.13 points at 11,583.69 along with S&P 500 index ended up by 21.06 points at 1,284.26 and NASDAQ closed higher by 10.10 points at 2,329.72.
Indian ADRs ended mixed. In technology sector, Patni Computers ended lower by (4.93%) along with Infosys by (0.69%) and Satyam by (0.40%) while Patni Computers remained unchanged. In banking sector, HDFC bank and ICICI bank dropped (2.03%) and (1.45%) respectively. In telecommunication sector, Tata Communication ended up by (3.49%) along with MTNL by (3.02%). Sterlite industries increased by (7.83%).
Today the major stock markets in Asia are trading mixed. Hang Seng index is trading higher by 68.19 points at 22,758.79 along with Taiwan Weighted trading up by 18.93 points at 7,089.28 while Japan’s Nikkei dropped 78.93 points at 13,288.86.
The FIIs on Wednesday stood as net seller in equity and net buyer in debt. The gross equity purchased was Rs2,312.70 Crore and the gross debt purchased was Rs159.30 Crore while the gross equity sold stood at Rs2,3645.00 Crore and gross debt sold stood at Rs33.40 Crore. Therefore, the net investment of equity reported was (Rs332.30) Crore and net debt was Rs125.90 Crore.
Today, Nifty has support at 4,227 and resistance at 4,408 and BSE Sensex has support at 13,989 and resistance at 14,627.
Market may remain nervous
Market may resume on firm note after the Sensex reported profit of around 500 points in the last session. Major hike in crude oil price, mixed asian indices and major funds resorting to selling of equities in the last session could make the investors jittery from taking any fresh position. Among the key local indices, the Nifty could decline to 4270 - 4200 on the downside while on the upside there is a near term resistance at 4350. The Sensex has a likely support at 14150 and may face resistance at 14450.
US indices ended positve on Wednesday on the back of strong financial reports, rising consumer confidence and falling oil prices. While the Dow Jones gained by 186 points to close at 11,584, the Nasdaq was up marginally by 10 points at 2330.
Major Indian ADRs, too, buckled under selling pressure on the US bourses. Patni Computer led the slump and tumbled 4.93% while Tata Motors declined 4.73%. Dr Reddy, HDFC Bank, ICICI Bank, Infosys, Satyam and Rediff lost over 0.17-2% each. However, MTNL and VSNL gained above 3%.
Crude oil prices advanced sharply after a surprise decline in the nation's gasoline stockpile, and a forecast from Goldman Sachs that said crude could hit $149 a barrel by year's end. The Nymex light crude oil for September series raising by $4.58 to close at $126.77 a barrel. In the commodity space, the Comex gold slumped $14.10 to settle at $912.30 a troy ounce.
Results Today : Abirlanuvo, Adlabsfilm, Aiaeng,Amtekauto,Aptecht, Bajajhind, Balramchin, Beml, Bharatforg, Bindalagro, Brigade, Centralbk, Dlf, Essaroil, Finantech, Ispatind, Jswsteel, Mtnl, Nagarconst, Nationalum, Parsvnath, Rcom, Renuka, Tatasteel, Titan, Yesbank
Bullion metals end mixed
Gold prices end considerably lower even though prices pare losses in last hours
Bullion metal prices once again dropped to its low levels in almost a month’s time today, Wednesday, 30 July, 2008. Prices fell as the dollar strengthened. Going into close, it pared some of its losses but still ended considerably lower. But silver prices rose for the day.
Comex Gold for August delivery fell $13.6 (1.5%) to close at $902.9 ounce on the New York Mercantile Exchange. It fell to a low of $895.4 during intra day trading. Last week, it ended lower by $30 (3.2%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then.
This year, gold prices have gained 8.1% till date against a 8% drop for the dollar against the euro. Gold prices ended June, 2008 with a gain of 4.1%. The yellow metal ended second quarter with a marginal gain of 0.7%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, for April, prices closed lower by 6.3%.
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%.
On Monday, Comex silver futures for September delivery rose 9 cents (0.46%) to $17.465 an ounce. Silver has gained 18.7% in 2008 till date. For the second quarter, it had gained a paltry 1.4%.
Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had 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.
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.
At the currency markets on Wednesday, the dollar rose earlier in the day in foreign-exchange trading after data based on a sampling of ADP payrolls indicated that July's private-sector employment rose by 9,000. Including some 20,000 government workers typically hired in a given month, the ADP index suggests U.S. nonfarm payrolls rose by about 30,000. But the dollar index which tracks the performance of the greenback against a basket of other currencies, pulled back a bit as oil prices gained more ground. The index was settled at 73.29, compared with 73.285 in the previous day.
At the crude market on Wednesday, crude-oil futures closed with a more than $4 per barrel gain finding support from the first drop in U.S. gasoline supplies in five weeks and a second-weekly decline in crude inventories. Production concerns tied to conflicts in Nigeria and rising tension in Iran also lent support. Crude for September delivery gained $4.58 to close at $126.77 a barrel on the New York Mercantile Exchange.
The weakening dollar and higher global demand for raw materials have led to records this year for commodities including gold. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. Gold and oil has climbed 34% and 60% since the past one year.
During last week of June, Federal Reserve yesterday sharpened its focus on inflation, saying that the upside risks to inflation have increased. Fed held its target for short-term interest rates steady at 2%. Since last September, Fed has axed interest rates seven times and brought it down to 2%. On the other hand, after keeping interest rates unchanged at 4% since June, 2007, ECB hiked the same to 4.25% in June, 2008.
Gold had 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. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for August delivery closed lower by Rs 142 (1.12%) at Rs 12,477 per 10 grams. Prices rose to a high of Rs 12,630 per 10 grams and fell to a low of Rs 12,284 per 10 grams during the day’s trading.
At the MCX, silver prices for September delivery closed Rs 174 (0.71%) higher at Rs 24,482/Kg. Prices opened at Rs 24,305/kg and rose to a high of Rs 24,560/Kg during the day’s trading.
Crude registers strong gains
Prices rise by almost $5 on inventory data
Crude prices registered sharp rise in prices today, Wednesday, 30 July, 2008. Prices rose after Energy Department’s weekly inventory report showed that last week registered first drop in gasoline inventories in almost five weeks and also showed a second weekly decline in the crude inventories.
Crude-oil futures for light sweet crude for September delivery closed at $126.77/barrel (higher by 4.54/barrel or 3.6%) on the New York Mercantile Exchange. Crude prices had registered drop in the past two days and yesterday it fell by almost $3. Last week, prices coughed up $6.5 (4.8%). It's now 14% lower than the $147.27 record high hit last on Thursday, 10 July, 2008.
EIA reported today that crude supplies fell by 100,000 barrels to 295.2 million barrels for the week ended 25 July. U.S. refinery activity was at 87.2% of capacity last week. That's up slightly from 87.1% the previous week.
EIA also reported that as for the oil products, motor gasoline supplies dropped by 3.5 million barrels to 213.6 million last week following a total climb of more than 8 million barrels between the weeks ended 27 June and 18 July. Distillate inventories, which include heating oil, were up 2.4 million at 130.5 million.
The increase in gasoline supplies came even as demand for motor gasoline stood at an average of about 9.4 million barrels per day over the past four weeks, down 2.4% from the same time a year ago.
At the currency markets on Wednesday, the dollar rose earlier in the day in foreign-exchange trading after data based on a sampling of ADP payrolls indicated that July's private-sector employment rose by 9,000. Including some 20,000 government workers typically hired in a given month, the ADP index suggests U.S. nonfarm payrolls rose by about 30,000. But the dollar index which tracks the performance of the greenback against a basket of other currencies, pulled back a bit as oil prices gained more ground. The index was settled at 73.29, compared with 73.285 in the previous day.
Crude prices gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. It ended June 2008 higher by 9.9%. Prices are 62% higher than a year ago. For the year, crude is up by 32% till date.
Against this background, September reformulated gasoline rose by 12.7 cents to close at $3.1399 a gallon while September heating oil added 4.7 cents to end at $3.5458 a gallon.
Natural-gas futures finished higher ahead of tomorrow’s update on natural-gas supplies from the EIA. September natural-gas futures rose 11.8 cents to close at $9.248 per million British thermal units.
At the MCX, crude oil for August delivery closed at Rs 5,347/barrel, higher by Rs 168 (3.2%) against previous day’s close. Natural gas for August delivery closed at Rs 392.5/mmbtu, higher by Rs 1.1/mmbtu (0.3%).
Energy Department will natural gas inventory data tomorrow covering the week ended 25 July.
Wednesday, July 30, 2008
BSE Bulk Deals to Watch - July 30 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
30/7/2008 590059 BIHAR TUBES APL INFRASTRUCTURE PRIVATE LIM B 1545000 156.75
30/7/2008 590059 BIHAR TUBES RAJASHTHAN GLOBAL SECURITIES LTD S 1600000 156.75
30/7/2008 533006 BIRLA COTSYN N D NISSAR B 765355 11.03
30/7/2008 533006 BIRLA COTSYN H.J.SECURITIES PVT.LTD. B 1329331 9.90
30/7/2008 533006 BIRLA COTSYN ADARSH FINVEST PRIVATE LTD B 1090500 9.77
30/7/2008 533006 BIRLA COTSYN N D NISSAR S 765355 11.03
30/7/2008 533006 BIRLA COTSYN H.J.SECURITIES PVT.LTD. S 1329331 9.89
30/7/2008 533006 BIRLA COTSYN JATIA FINANCE LTD S 864870 9.27
30/7/2008 500078 CAMP ALLI PR SUMARU ENTERPRISES PRIVATE LTD B 55000 85.55
30/7/2008 532836 GREMAC INFRA MAVI INVESTMENT FUND LTD S 150000 88.01
30/7/2008 531084 INDOCASTLE M INDOCITY INFOTECH LTD S 52700 13.95
30/7/2008 512185 IOL NET COM JAROLI VINCOM PVT LTD B 170000 80.54
30/7/2008 530885 JAISAL SECUR VENUGOPAL REDDY S B 25000 37.49
30/7/2008 530885 JAISAL SECUR CANOS TRADING PVT LTD. S 20000 37.50
30/7/2008 500277 MIDINDI INDU ALKEN MANAGEMENT AND FINANCIAL S B 90064 2.97
30/7/2008 532606 PAREKH ALUM PIONEER NIRMAN INDIA PRIVATE L B 147559 142.38
30/7/2008 514300 PIONER EMBRO ANAND YOGESH SHARES AND CONSULTANCY PVT LTD B 68500 45.72
30/7/2008 514300 PIONER EMBRO GOPAL TRADERS S 65173 45.75
30/7/2008 500302 PIRAMA HEALT THE SWASTIK SAFE DEPOSIT B 1390000 315.00
30/7/2008 500302 PIRAMA HEALT URVI ASHOK PIRAMAL S 1390000 315.00
30/7/2008 531646 RFL INTERNAT KANAK B MEHTA B 26000 0.70
30/7/2008 500389 SILVERLINE T APEX SECURITIES B 466923 19.00
30/7/2008 500389 SILVERLINE T SHALANI DHOOP PVT LTD B 454232 19.02
30/7/2008 500389 SILVERLINE T APEX SECURITIES S 247123 18.97
30/7/2008 500389 SILVERLINE T BSMA LTD S 950000 18.82
30/7/2008 500389 SILVERLINE T SHALANI DHOOP PVT LTD S 495578 19.02
30/7/2008 504398 SJ CORP LTD RAMESH D. PATEL B 2500 446.80
30/7/2008 504398 SJ CORP LTD SURBHI DHANANJAYA DESAI S 1500 446.80
30/7/2008 504398 SJ CORP LTD DHANANJAYA SUSHILCHANDRA DESAI S 1000 446.80
30/7/2008 517224 SUJANA UNIV S V ENTERPRISES B 1046170 11.22
30/7/2008 517224 SUJANA UNIV S V ENTERPRISES S 1046170 10.90
30/7/2008 532887 SUJANATOWER LIVE STAR MARKETING PVT LTD S 220000 75.00
30/7/2008 507785 TAINWA CHE P BHAGWANDAS HASHMATRAI MELWANI S 200000 13.01
30/7/2008 524394 VIMTA LABS L QUEST PORTFOLIO SERVICES P.LTD. B 200000 47.20
30/7/2008 524394 VIMTA LABS L DHARAMSHI BROKING PVT.LTD. S 200000 47.20
30/7/2008 517498 WEBEL SL ENE S L AGARWAL B 40000 232.00
30/7/2008 517498 WEBEL SL ENE GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD S 40000 232.00
NSE Bulk Deals to Watch - July 30 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
30-JUL-2008,ADHUNIK,Adhunik Metaliks Limited,CLEARWATER CAPITAL PARTNERS INVESTMENTS LTD.,BUY,610000,113.73,-
30-JUL-2008,ALEMBICLTD,Alembic Limited,MERRILL LYNCH INTERNATIONAL LTD,BUY,3075323,42.00,-
30-JUL-2008,BAJAJHLDNG,Bajaj Holdings & Invs Ltd,SANRAJ NAYAN INVESTMENTS PRIVATE LIMITED,BUY,2500000,394.99,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,ADROIT FINANCIAL SERVICES PVT LTD,BUY,1796580,10.91,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,AYODHYAPATI INVESTMENT PVT.LTD,BUY,608900,10.38,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,615966,10.35,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,NISSAR BROTHERS,BUY,1341622,10.90,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,PRAKASH & CO,BUY,1406962,11.01,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,PRASHANT JAYANTILAL PATEL,BUY,1341755,11.40,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,SS CORPORATE SECURITIES LIMITED,BUY,769282,11.43,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,TRANSGLOBAL SECURITIES LTD.,BUY,3706899,10.77,-
30-JUL-2008,CRISIL,CRISIL Limited,CLSA (MAURITIUS) LIMITED,BUY,122816,3605.00,-
30-JUL-2008,FIRSTWIN,First Winner Industries L,MLJ FOODS PVT LTD,BUY,91200,120.81,-
30-JUL-2008,FIRSTWIN,First Winner Industries L,SCB CORPORATION PROP SUNIL BAMCHA,BUY,150003,124.15,-
30-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,BUY,190627,118.96,-
30-JUL-2008,GODFRYPHLP,Godfrey Phillips Ltd.,CLSA (MAURITIUS) LIMITED,BUY,72556,1299.00,-
30-JUL-2008,GRANULES,Granules India Limited,KRISHNA PRASAD CHIGURUPATI,BUY,326565,53.00,-
30-JUL-2008,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,6798535,25.78,-
30-JUL-2008,PIONEEREMB,Pioneer Embroideries Limi,ANAND YOGESH SHARES AND CONSULTANCY PVT LTD,BUY,68500,44.82,-
30-JUL-2008,ADHUNIK,Adhunik Metaliks Limited,ABN AMRO BANK N.V. LONDON BRANCH,SELL,643276,111.83,-
30-JUL-2008,ALEMBICLTD,Alembic Limited,FIDELITY TRUSTEE COMPANY PRIVATE LIMITED A/C FIDELITY EQUITY,SELL,3203976,42.01,-
30-JUL-2008,BAJAJHLDNG,Bajaj Holdings & Invs Ltd,T. ROWE PRICE INTERNATIONAL A/C NEW ASIA FUND,SELL,1412549,395.00,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,ADROIT FINANCIAL SERVICES PVT LTD,SELL,1796580,10.85,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,AYODHYAPATI INVESTMENT PVT.LTD,SELL,1132900,10.67,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,BHAGYANAGAR METALS LIMITED,SELL,700000,12.15,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,615966,10.39,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,NISSAR BROTHERS,SELL,1341622,10.91,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,PRAKASH & CO,SELL,1406962,11.25,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,PRASHANT JAYANTILAL PATEL,SELL,1341755,11.43,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,SATI SALES PVT LTD,SELL,2030000,12.17,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,SS CORPORATE SECURITIES LIMITED,SELL,769282,10.24,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,TRANSGLOBAL SECURITIES LTD.,SELL,3701599,10.81,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,UKS OIL (P) LIMITED,SELL,731097,12.25,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,VICKY RAJESHBHAI JHAVERI,SELL,1374012,10.10,-
30-JUL-2008,CRISIL,CRISIL Limited,CALYON,SELL,122816,3605.00,-
30-JUL-2008,FIRSTWIN,First Winner Industries L,MLJ FOODS PVT LTD,SELL,91200,126.50,-
30-JUL-2008,FIRSTWIN,First Winner Industries L,SCB CORPORATION PROP SUNIL BAMCHA,SELL,223003,121.07,-
30-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,SELL,190627,119.02,-
30-JUL-2008,GODFRYPHLP,Godfrey Phillips Ltd.,CALYON,SELL,72556,1299.00,-
30-JUL-2008,GRANULES,Granules India Limited,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,324075,53.00,-
30-JUL-2008,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,6798535,25.81,-
30-JUL-2008,PIONEEREMB,Pioneer Embroideries Limi,GOPAL TRADERS,SELL,71826,44.77,-
No new gas connections
Faced with mounting losses, Indian Oil Corp, the nation's largest fuel retailer, has 'temporarily' stopped giving new domestic cooking gas (LPG) connections, a move that has led a wait list of over 2 lakh.
"We have not bought new cylinders for almost one year now due to cash crunch (and so) we do not have equipment to give new connections," IOC Chairman Sarthak Behuria told reporters here.
IOC loses Rs 338.53 on sale of every 14.2 kg LPG cylinder and its daily loss on sale of the domestic fuel is about Rs 33 crore.
"We do not have working capital to service new consumers. So temporarily we have stopped issuing new connections," Behuria said. "Consumers are welcome to enrol but we have not given new connections since April."
Behuria said the move has led to a wait list of over two lakh consumers. "These are difficult times. We are faced with huge working capital shortage."
IOC, which has 56 per cent of the over 9.8 crore LPG consumers in the country, is projected to lose Rs 1,21,015 crore on sale of petrol, diesel, domestic LPG and kerosene in the current fiscal as government has not allowed it to raise retail prices in line with rise in cost.
The company also also resorted other measures to shore up its working capital including asking dealers to pay for supplies in advance and stopping consumer credits.
"We are also trying to restrict diversion (of domestic LPG) for commercial use," Behuria said.
The subsidised domestic LPG cylinder often finds way to hotels and restaurants and industries and automobiles who are supposed to use market priced gas.
Post Session Commentary - July 30 2008
The domestic market rebounded from yesterday’s losses to close with heavy gains on sustained buying over the ground led by favorable global cues and drop in crude oil prices. Indian market opened higher following positive global cues as crude declined to three month lows. Crude oil prices dropped by $2.54 to close at $122.19 a barrel on the NYMEX. Further, market traded sharply higher without any sign of weakness for through out of trading session. The interest rate sensitive like Bank and Real Estate shares, who were the major laggards yesterday made a smart come back in today session to conclude the day with hefty gains. NSE Nifty gained around 3% and ended above 4,300 mark. BSE Sensex closed with gains of more than 3% and ended above 14,200 level. The sharp rise was due to the heavy buying activities over the counters across all indices except FMCG stocks. Out of which, Bank and Reality indices rallied to close with a gain of more than 5%. Along with this, the Metal, Capital Goods, Oil & Gas, IT and Power stocks also witnessed heavy buying from these baskets. The market breadth was strong as 1784 stocks closed in green while 857 stocks closed in red and 83 stocks remained unchanged.
The BSE Sensex closed higher by 495.67 points at 14,287.21 and NSE Nifty ended up by 127.35 points at 4,317.20. The BSE Mid Caps closed with gains of 92.43 points at 5,581.01 and Small Cap ended up by 96.59 points 6,927.60. The BSE Sensex touched intraday high of 14,322.67 and intraday low of 14,002.19.
Gainers from the BSE are HDFC (7.99%), Tata Steel (7.83%), Tata Power (6.92%), Reliance Infra (6.90%), HDFC Bank Ltd (6.18%), Reliance Infra (10.36%), Sterlite In (5.13%), SBI 4.97%), Tata Motors (4.91%) and Wipro Ltd (4.90%).
Among the Sensex 30 pack 28 stocks closes in green and only two closed in red. Losers from the BSE are NTPC Ltd (4.23%) followed by ITC Ltd (1.11%).
The Metal index closed up by 568.34 points at 12,698.70. Gainers are Jindal Steel (8.92%), Tata Steel (7.83%), Hindustan Zinc (6.77%), Sterlite In (5.13%), NMDC Ltd (5.00%), and Gujarat Nre C (3.81%).
The BSE Bank index closed higher by 323.02 points at 6,522.62. Major gainers are Axis Bank (9.60%), Bank of Baroda (9.24%), Union Bank (6.69%), HDFC Bank Ltd (6.18%), Bank of India (5.37%), PNB (4.97%), ICICI Bank Ltd (4.59%), and Yes Bank (4.52%).
The BSE Capital Goods index gained 307.77 points to close at 11,628.37. Major gainers are Punj Lloyd (11.88%), Reliance Industrial Infra (5.00%), Walchand Ind (5.00%), BHEL (4.83%), Crompton Greaves (4.45%) and Jyoti Struct (3.95%).
The Oil & Gas index ended up by 304.17 points at 9,607.74. As Reliance Natural Resources (11.15%), BPCL (6.03%), IOC (5.16%), Reliance (3.74%), Gail India (3.37%) and Cairn India (3.37%) closed in positive territory.
The BSE Reality index ended higher by 244.17 points at 5,041.88. As Indiabulls Real (13.48%), Anant Raj (6.98%), Ansal Infra (5.72%), DLF Ltd (3.98%), Akruti City (3.88%), Unitech Ltd (3.41%), and Pheonix Mill (2.95%) closed in positive territory.
The BSE FMCG index lost 3.06 points to close at 2,133.22. Major losers are REI agro Ltd (4.78%) and ITC Ltd (1.11%).
Sensex garners 496 points on strong global cues, fall in oil
Rally in global equities and fall in oil prices aided a rebound on the domestic bourses today. Bulls struck back with vengeance as the market recouped most of yesterday (29 July 2008)’s losses caused by further monetary tightening by the Reserve Bank of India. Sensex gained more than 525 points at the day's highs hit in late trade. The barometer index BSE Sensex breached 14,000 mark in early trade and the market remained firm throughout the day.
Reliance Industries (RIL) surged. Banking stocks bounced back from yesterday (29 July 2008)’s steep fall. Metal, IT and realty and power shares also gained. Except BSE FMCG index all the other sectoral indices on BSE gained. HDFC, Tata Steel rose more than 7.5% while Tata Power Company and Reliance Infrastructure rose more than close to 7% each. The market breadth was strong as buying was witnessed across the board.
New York's main contract, light sweet crude for September 2008 delivery slumped $2.54 to $122.19 a barrel on the New York Mercantile Exchange yesterday, 29 July 2008.
The 30-share BSE Sensex jumped 495.67 points or 3.59% at 14,287.21. The index gained 531.13 points at the day’s high of 14,322.67, hit in late trade. The index gained 210.65 at the day’s low of 14,002.19 at the onset of the trading session.
The broader based S&P CNX Nifty jumped 123.70 points or 2.95% at 4,313.55. Nifty July 2008 futures were at 4330, at a premium of 16.45 points as compared to spot closing of 4313.55.
The barometer index BSE Sensex is down 5,999.78 points or 29.57% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,919.56 points or 32.62% away from its all-time high of 21,206.77 struck on 10 January 2008.
The BSE clocked a turnover of Rs 5,273 crore today as compared to a turnover of Rs 5,103.03 crore yesterday, 29 July 2008. NSE's futures & options (F&O) segment turnover was Rs 58,543.91 crore, which was lower than Rs 64,804.21 crore on Tuesday, 29 July 2008. July 2008 derivatives contracts will expire tomorrow, 31 July 2008.
The BSE Mid-Cap index was rose 1.68% to 5,581.01 and the BSE Small-Cap index was up 1.41% to 6,927.08. Both these indices underperformed Sensex.
BSE Bankex (up 5.21% to 6,522.62), BSE Realty index (up 5.09% to 5,041.88), BSE Metal index (up 4.69% to 12,698.70), BSE IT index (up 3.72% to 3,722.09) outperformed Sensex.
BSE FMCG index (down 0.14% to 2,133.22), BSE Consumer Durables index (up 1.04% to 3,659.20), BSE HealthCare (up 1.81% to 4,207.91), BSE PSU index (up 2.49% to 6,676.91), BSE Capital Goods index (up 2.72% to 11,628.37), BSE Auto index (up 2.79% to 3,672.86), BSE Power index (up 3.25% to 2,554.22), BSE Oil & Gas (up 3.27% to 9,607.74), BSE Teck index (up 3.28% to 3,030.52) underperformed Sensex.
The market breadth was strong on BSE with 1,784 shares advancing as compared to 857 that declined. 83 remained unchanged.
As per the provisional figures on BSE, foreign institutional investors sold shares worth Rs 628.47 crore while domestic funds bought shares worth Rs 672.12 crore today, 30 July 2008.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 3.74% to Rs 2,163.20.
Bank stocks recovered from Tuesday's steep fall caused by further monetary tightening by the Reserve Bank of India at its quarterly policy review. HDFC Bank (up 6.18% to Rs 1,092.50), ICICI Bank (up 4.59% to Rs 635.30) and State Bank of India (up 4.97% to Rs 1,386.65) edged higher.
Realty stocks surged. Indiabulls Real Estate (up 13.48% to Rs 299.65), DLF (up 3.98% to Rs 490.70) and Unitech (up 3.41% to Rs 162.15) edged higher.
Metal stocks rose. Tata Steel (up 7.83% to Rs 630.05), Steel Authority of India (up 3.58% to Rs 136.05), Hindalco Industries (up 0.65% to Rs 140.15) and Sterlite Industries (up 5.13% to Rs 622.45) edged higher.
IT stocks gained. Satyam Computer Services (up 3.12% to Rs 380.20), Wipro (up 4.9% to Rs 422.45), Infosys (up 4.07% to Rs 1,602.60) and Tata Consultancy Services (up 3.76% to Rs 838.60) edged higher.
Power stocks rose. Tata Power Company (up 6.92% to Rs 1,115.50), Reliance Infrastructure (up 6.9% to Rs 970.80), Reliance Power (up 5.77% to Rs 163.05) edged higher.
HDFC (up 7.99% to Rs 2,273.95), Bharat Heavy Electricals (up 4.83% to Rs 1,668.95), Bharti Airtel (up 3.99% to Rs 809.95), were major gainers from Sensex pack.
India’s largest truckmaker by sales Tata Motors rose 4.91% to Rs 416.30. The company today reported 30.13% fall in net profit to Rs 326.11 crore on 17.88% rise in total income to Rs 7,244.05 crore in Q1 June 2008 over Q1 June 2007.
India’s largest tractor maker by sales Mahindra & Mahindra rose 2.66% to Rs 513.50. The company’s net profit fell 16.66% to Rs 159.3 crore on 25.99% rise in total income to Rs 3331.8 crore in Q1 June 2008 over Q1 June 2007. The company's board approved acquisition of all the business assets of Kinetic Motor Company (KMCL), a two-wheeler company for Rs 110 crore.
Power generation major NTPC fell 4.23% to Rs 170.90. On Tuesday, 29 July 2008, NTPC reported 27.1% fall in net to Rs 1726.53 crore on 5.87% growth in total income to Rs 10256.70 crore in Q1 June 2008 over Q1 June 2007.
India’s largest motorbike maker by sales Hero Honda Motor rose 6.27% to Rs 782.30. On Tuesday, the company reported 44% surge in profit after tax to Rs 272.87 crore on 16% growth in turnover to Rs 2890.25 crore.
Birla Cotsyn clocked the highest volume of 5.2 crore shares on BSE. Reliance Natural Resources (3.88 crore shares), IFCI (94.94 lakh shares), Ispat Industries (91.81 lakh shares), Reliance Petroleum (82.98 lakh shares) were the other volume toppers in that order.
Reliance Natural Resources clocked the highest turnover of Rs 374.84 crore on BSE. Reliance Capital (Rs 233.86 crore), Larsen & Toubro (Rs 178.11 crore), Reliance Industries (Rs 166.52 crore) and Housing Development Finance Corporation (Rs 145.42 crore) were the other turnover toppers in that order.
US stocks surged overnight, benefiting from a steep drop in oil prices and an unexpected rise in US consumer confidence after Merrill Lynch's announcement of yet another write-down and capital-raising exercise, raising hopes that the turning point in the year-long credit crisis was close. The Dow Jones Industrial Average rose 266.48 points, or 2.39 per cent, at 11,397.56, the Standard & Poor's 500 Index gained 28.82 points, or 2.33 per cent, at 1,263.19 and the Nasdaq Composite Index rose 55.40 points, or 2.45 per cent, at 2,319.62.
Asian markets were trading higher today, 30 July 2008. Japan's Nikkei, Hong Kong's Hang Seng, Taiwan's Taiwan Weighted, Singapore's Straits Times and South Korea's Seoul Composite were up by between 0.67% to 2.04%. China's Shanghai Composite fell 0.7%.
European markets edged higher. France’s CAC 40, Germany’s DAX and UK’s FTSE 100 were up by between 0.63% to 1.29%.
In the near term, the domestic bourses may remain volatile ahead of expiry of futures & options contracts for July 2008 series on Thursday, 31 July 2008. As per reports, marketwide rollover of positions from July 2008 series to August 2008 series stood at 44%, while that of Nifty was 48%, as of Tuesday 29 July 2008.
The market had slumped yesterday, 29 July 2008 after the Reserve Bank of India (RBI) raised cash reserve ratio (CRR) by 25 basis points and repo rate by 50 basis points at quarterly review of the monetary policy. The 30 share BSE Sensex plunged 557.57 points or 3.89% at 13,791.54 and the broader based S&P CNX Nifty was down 142.25 points or 3.28% at 4,189.85, on that day. The tone of the monetary policy was extremely hawkish.
Market likely to see strong opening
Strong global cues and a fall in crude oil prices below $122 per barrel may trigger a strong opening in early trade today, 30 July 2008. New York's main contract, light sweet crude for September delivery slumped $2.54 to $122.19 a barrel on the New York Mercantile Exchange yesterday, 29 July 2008.
In the near term, the market trend is likely to dictated by slew of events like expiry of futures & options contracts on Thursday, 31 July 2008. Besides, the progress of the monsoon and corporates quarterly numbers will also be keenly watched.
Among the frontline companies, Mahindra & Mahindra, Tata Motors, Suzlon Energy, Unitech and ITC will declare their June 2008 quarterly results.
Volatility may remain high ahead of the expiry of futures & options contracts for July 2008 series on Thursday, 31 July 2008. As per reports, marketwide rollover of positions from July 2008 series to August 2008 series stood at 44%, while that of Nifty was 48%, as of Tuesday 29 July 2008.
Asian markets were trading higher today, 30 July 2008. China's Shanghai Composite rose 0.55% or 15.72 points at 2,866.03, Japan's Nikkei gained 1.19% or 156.26 points at 13,315.71, Hong Kong's Hang Seng added 1.66% or 369.18 points at 22,627.18, Taiwan's Taiwan Weighted advanced 0.64% or 44.83 points at 7,059.30, Singapore's Straits Times was up 1.01% or 29.11 points at 2,915.67 and South Korea's Seoul Composite surged 0.65% or 10.20 points at 1,577.40
Wall Street shares surged overnight, benefiting from a steep drop in oil prices and an unexpected rise in US consumer confidence after Merrill Lynch's announcement of yet another write-down and capital-raising exercise raising hopes that the turning point in the yearlong credit crisis was close.
The Dow Jones Industrial Average rose 266.48 points, or 2.39 per cent, at 11,397.56, the Standard & Poor's 500 Index gained 28.82 points, or 2.33 per cent, at 1,263.19 and the Nasdaq Composite Index rose 55.40 points, or 2.45 per cent, at 2,319.62.
Back home, the key benchmark indices slumped sharply yesterday, 29 July 2008 after the Reserve Bank of India (RBI) raised cash reserve ratio (CRR) by 25 basis points and repo rate by 50 basis points at quarterly review of the monetary policy. The 30 share BSE Sensex plunged 557.57 points or 3.89% at 13,791.54 and the broader based S&P CNX Nifty was down 142.25 points or 3.28% at 4,189.85, on that day.
The barometer index BSE Sensex is down 6,495.45 points or 32.01% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 7,415.23 points or 34.96% away from its all-time high of 21,206.77 struck on 10 January 2008.
As per the provisional figures foreign institutional investors (FII)'s sold shares worth Rs 538.27 crore while domestic funds sold shares worth Rs 254.59 crore yesterday 29 July 2008.
Foreign institutional investors (FIIs) were net sellers of Rs 1939.47 crore in the futures & options segment on 28 July 2008. They were net sellers of index futures to the tune of Rs 1166.31 crore and bought index options worth Rs 81.46 crore. They were net sellers of stock futures to the tune of Rs 883.85 crore and purchased stock options worth Rs 29.22 crore.
The Reserve Bank of India (RBI) yesterday 29 July 2008, raised repo rate by 50 basis points to a seven-year high of 9% to curb inflation, now running close to 12%, and dampen inflationary expectations. The RBI also raised the cash reserve ratio (CRR), the proportion of funds that banks must keep on deposit with it, by 25 basis points to 9%. The central bank left its reverse repo and bank rates unchanged. The tone of the monetary policy was extremely hawkish.
Morning Call - July 30 2008
In House :
Nifty at a support at 4164 and 4075 with resistance at 4275 and 4330.
Cash: Buy RNRL above 89.50 target 94 with S/L 87.45
Cash: Buy CHAMBAL FERT above 71 target 76 with S/L 68.50
Future: Buy APTECH above 188 targets 200 with S/L 182.
Future: Buy TATA STEEL above 587 targets 605 with S/L 576.
Out House:
Markets at a support of 13786 & 13636 levels with resistance at 14041 & 14241 levels .
Buy : INFY & TCS
Buy : Adalbs & Relinfra
Buy : Sail & SesaGoa
Buy : Relcap
Buy : LNT
Buy : ITC & HLL
Buy : SBIN & IciciBank
Buy : Aftekinfo & IFCI
Buy : Core project
Dark Horse : Aftek , Wipro , Adalbs , SBIN , LNT , Core & INFY
Market expected to open positive
Positive close in US markets and firm Asian indices in morning trades may help the market open in the green. However, worries about FIIs remaining net sellers of equities in the domestic market and recent spike in crude oil prices could force the players to remain on the sidelines. The Nifty on the downside may dip to 4150 while on the upside it may test 4260. The Sensex has a likely support at 13600 and may face resistance at 14100.
US indices bounced back in a late session rally on Tuesday with the Dow Jones advanced by 266 points at 11398, the Nasdaq added 55 points to close at 2320.
Most of the Indian ADRs posted gains on the US bourses on Tueday. VSNL led the pack with the gains of 6.09%, while Satyam surged 6.09%. Tata Motors, Infosys. Wipro, ICICI Bank, Rediff, HDFC Bank and Patni Computer gained over 1-5% each. However, MTNL fell over 2.74% and Dr Reddy lost 2.06%.
Oil prices fell below $121 on Tuesday aafter OPEC president says there is adequate supply and prices are much too high. The Nymex light crude oil for September delivery slipped by $2.54 to close at $122.19 a barrel. In the commodity space, the Comex gold for December delivery tumbled $11.40 to settle at $926.40 an ounce.
Crude drops, bullion drop
Bullion metal prices dropped to its low levels in almost a month's time today, Tuesday, 29 July, 2008. Prices fell as the crude prices continue to tumble and the dollar index rose. Silver prices also fell for the day.
Comex Gold for August delivery fell $11.2 (1.2%) to close at $916.5 ounce on the New York Mercantile Exchange. It fell to a low of $913.8 during intra day trading. Yesterday, the yellow metal registered marginal gains of 90 cents. Last week, it ended lower by $30 (3.2%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then.
This year, gold prices have gained 9.6% till date against a 8.4% drop for the dollar against the euro. Gold prices ended June, 2008 with a gain of 4.1%. The yellow metal ended second quarter with a marginal gain of 0.7%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, for April, prices closed lower by 6.3%.
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%.
On Monday, Comex silver futures for September delivery fell 9 cents (0.46%) to $17.375 an ounce. Silver has gained 18.2% in 2008 till date. For the second quarter, it had gained a paltry 1.4%.
Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had 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.
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.
At the currency markets on Tuesday, the greenback gained against most other major rivals, with the dollar index up at 73.266 against previous day's 72.694. Stocks rallied at Wall Street today after crude prices dropped by almost $3 and also as consumer confidence rose. The Conference Board reported Tuesday that U.S. consumer confidence ticked up in July, while the level remained relatively low and job concerns persisted. The July consumer confidence index rose to 51.9 from a June reading that was revised to 51 from a prior estimate of 50.4.
At the crude market on Tuesday, crude oil fell to the lowest in 12 weeks as the U.S. dollar strengthened to a one-month high against the euro and on signs gasoline demand may extend declines. Crude oil for September delivery fell $2.54 (2%) to $122.19 a barrel on the New York Mercantile Exchange. It fell as low as $120.42 today.
The weakening dollar and higher global demand for raw materials have led to records this year for commodities including gold. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. Gold and oil has climbed 34% and 60% since the past one year.
During last week of June, Federal Reserve yesterday sharpened its focus on inflation, saying that the upside risks to inflation have increased. Fed held its target for short-term interest rates steady at 2%. Since last September, Fed has axed interest rates seven times and brought it down to 2%. On the other hand, after keeping interest rates unchanged at 4% since June, 2007, ECB hiked the same to 4.25% in June, 2008.
Gold had 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. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for August delivery closed lower by Rs 158 (1.2%) at Rs 12,619 per 10 grams. Prices rose to a high of Rs 12,850 per 10 grams and fell to a low of Rs 12,599 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 219 (0.9%) lower at Rs 24,308/Kg. Prices opened at Rs 24,550/kg and fell to a low of Rs 24,080/Kg during the day's trading.
Turnover spurts ahead of expiry of July 2008 contracts
L&T July 2008 futures at premium
Nifty July 2008 futures were at 4194, at a premium of 4.15 points as compared to spot closing of 4189.85. NSE's futures & options (F&O) segment turnover was Rs 64,804.21 crore, which was higher than Rs 45,000.90 crore on Monday, 28 July 2008. July 2008 derivatives contracts will expire on Thursday, 31 July 2008.
Larsen & Toubro (L&T) July 2008 futures were at premium at 2548.50 compared to the spot closing of 2546.65.
State Bank of India July 2008 futures were at discount at 1310 compared to the spot closing of 1318.65.
Reliance Petroleum July 2008 futures were near spot price at 159.60 compared to the spot closing of 159.45.
In the cash market, the S&P CNX Nifty lost 142.25 points or 3.28% at 4189.85.
Today's Pick - IDFC
We recommend a ‘sell’ in Infrastructure Development Finance Company (IDFC) from a short-term perspective. It is evident from the charts of IDFC that the stock has been on an intermediate-term downtrend from its January 2008 peak of Rs 235, forming lower peaks and lower troughs.
In May, the stock declined below the 200 and 50-day moving averages. The downtrend has continued and the stock conclusively breached the key support level Rs 110 recently. On July 29, the stock tumbled almost 9 per cent, reinforcing the downtrend. With this, the daily relative strength index (RSI) has entered the bearish zone from the neutral region and the weekly RSI is featuring in this zone. The moving average convergence and divergence is featuring in the negative territory. The stock is trading well below its 21 and 50-day moving averages.
Considering that the medium-term down trendline is intact, we are bearish on the stock in the short-term. We expect the stock’s decline to continue until it hits our price target of Rs 78 in the forthcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 94.
via BL
Trading Calls - July 30 2008
Nifty (4190) Sup 4140 Res 4270
Buy BPCL (311) SL 305
Target 320, 324
Buy Sesa Goa (3234) SL 3209 Target 3285, 3295
Buy RIL (2083) SL 2065
Target 2125, 2135
Buy Kotak Bank (524) SL 518 Target 535, 539
Sell HCL Tech (199) SL 203 Target 189, 186
Bounce at start, no stability
Better to be approximately right than precisely wrong – Dr. Reddy, RBI Governor.
We were approximately right on the surprise part but precisely wrong on the positive part. We had mentioned that the RBI Governor has a knack of surprising the markets. He did it again by jacking up repo rate by an unexpected 50 bps and raising the CRR by another 25 bps. We were hoping for a positive surprise, but what we got instead was an extremely hawkish quarterly review. In a meet soon after the policy which we attended, the RBI governor said he would like to reduce excess volatility but that need not mean stability. The markets and pundits were stunned as nobody was prepared for this negative surprise.
The bulls must be cursing their luck, for just when things were beginning to look up after a prolonged period of bearishness comes the big blow from the RBI. The central bank has also scaled back its expectations of economic growth, to 8% from 8.5%. This is still quite good considering the slew of headwinds (local as well as global) that we are grappling with. Whether we actually achieve this or not is a big question. The RBI wants to bring down inflation to 7% before the fiscal end. This is also much higher from its medium-term target of 5%. Given the spiraling cost pressures, the central bank will be fortunate if it meets its annual GDP and inflation targets. A good monsoon and a steep fall in crude oil prices (below $100/bbl) will surely help.
Talking of oil prices, crude futures in New York fell to a three-month low amid strengthening dollar, stable geopolitical situation and slowing fuel demand. What could also help the bulls recover is that US stock indexes ended at or near the day's highs after data showed a better-than-forecast rise in consumer confidence and crude oil fell by nearly $4 per barrel. European markets rose after a weak start while stock benchmarks also rallied in emerging markets like Brazil. Stocks in Russia sank due to lower oil prices. Asian markets have also opened higher, led by Hang Seng which is up by 1.8%.
So, we are looking at a higher opening on local bourses after yesterday's credit policy led sell-off. The rebound may not be very sustainable, as the latest increase in interest rates could worsen the macroeconomic scenario. Rates will go up across the board. India Inc will continue to feel the pinch from rising borrowing costs and slowing consumer demand for the next few quarters. Expectations on corporate earnings growth will have to be scaled down. The market may turn volatile after a good start ahead of tomorrow's F&O expiry.
FIIs were net sellers of Rs5.38bn (provisional) in the cash segment on Tuesday and the local funds offloaded shares worth Rs2.55bn. In the F&O segment, the foreign funds were net sellers of Rs14.57bn. On Monday, FIIs were net sellers of Rs6.09bn in the cash segment. Mutual Funds were net buyers of Rs2.04bn.
Key Results Today: ABG Shipyard, Allied Digital, Alok Industries, Ansal Infra, Asahi India, Asian Hotels, Avaya Global, Balmer Lawrie, Bata India, BGR Energy, Bongaigaon Refinery, CESC, DCB, Dishman Pharma, Everest Kanto, Geometric Software, Great Offshore, Gujarat Alkalies, GMDC, GNFC, Gujarat Gas, HCL Tech, ITC, Indiabulls Realty, India Cement, IVR Prime, IVRCL Infra, J&K Bank, Lanco Infra, Madras Cement, Maharashtra Seamless, M&M, Merck, Orchid Chem, Power Grid Corp., PNB, Puravankara, Pyramid Saimira, Radico Khaitan, Reliance Capital, SpiceJet, SREI Infra, Suzlon, Tata Chemicals, Tata Comm, Tata Motors, Torrent Power, Trent, Triveni Engineering, Unitech, Unity Infra, Usha Martin, Vishal Retail and Yes Bank.
Asian stocks rose after better-than- expected earnings from Matsushita Electric and oil prices at a 12-week low eased concern that slowing global growth will hurt earnings. The MSCI Asia Pacific Index gained 1.1% to 131.56 as of 10:57 a.m. in Tokyo. Five stocks rose for each that declined, with nine of the index's 10 industry groups advancing.
The Nikkei in Tokyo was up 1.2% at 13,315 while the Hang Seng in Hong Kong climbed nearly 2% to 22,688. The Kospi in Seoul gained 0.7% to 1578 while the Straits Times in Singapore rose 1.1% to 2917.
The Shanghai Composite index in China added 0.3% to 2857 and the Taiex in Taiwan rallied 1.1% to 7093. Australia's S&P/ASX 200 index in Sydney surged by over 2% to 4952.
Strong financial reports, rising consumer confidence and falling oil prices lifted US stocks on Tuesday. All the major indices advanced steadily throughout the day as consumer confidence got a surprise boost in July.
The US market opened with a gap after Merrill Lynch said it would take a $5.7bn writedown and sell off $11.1bn in mortgage securities in the current quarter. The brokerage also said it plans to raise $8.5bn through fresh share sale.
One will have to see if Wall Street can continue to rally on Wednesday, as investors will get a glimpse at the monthly ADP employment report ahead of Friday's US Labor Department report.
Crude oil prices fell $2.54 to end at $122.19 per barrel, the lowest settlement since May 6. Oil plummeted after OPEC President Chakib Khelil said oil was overpriced and could sink to $78 a barrel. Oil is down $25 a barrel since setting a record high of $147.27 on July 11.
But, some analysts say falling oil prices could also mean that the global economy is weakening.
Financials rallied, as investors hoped banks are positioning themselves to get out of the mess that they got into in the wake of the sub-prime mortgage meltdown and the consequent credit crunch.
Shares of Merrill Lynch rose 8%, but most other banks' stocks advanced by even more. Other investment banks fared well, too, with Goldman Sachs rising 5.1%, Morgan Stanley adding 4.4% and Lehman Brothers posting a 10.5% gain.
Government-backed mortgage finance giants Fannie Mae and Freddie Mac also rebounded after sharp losses Monday.
Citigroup also managed a 5.9% gain, even after Deutsche Bank analyst Mike Mayo forecasted that the bank will take an added $8bn in writedowns related to its collateralized debt obligations in its third quarter.
The average price of gasoline fell 1.7 cents to $3.941 per gallon in the US, declining for the 12th straight day. It was gasoline's lowest level since May 29.
In currency trading, the US dollar spiked against global currencies, jumping to a one-month high Tuesday versus the euro. COMEX gold for August delivery fell $11.20 to settle at $916.50 per ounce, after fluctuating above and below the breakeven point for much of the day.
Treasury prices fell, sending the yield on the benchmark 10-year note up to 4.05% from 4.01% late on Monday.
European stocks ended higher, erasing earlier losses. The pan-European Dow Jones Stoxx 600 index finished 0.3% higher, up 0.91 points, to 279.64. Germany's DAX 30 rose 0.8%, or 47.65 points, to 6,398.80, while the French CAC 40 ended the day down 0.1%, or 3.96 points, at 4,320.49. The UK's FTSE 100 shook off early losses to end just barely higher at 5,319.20, up 0.1%.
In the emerging markets, the Bovespa in Brazil jumped 2.06% to 58,042 while the IPC index in Mexico was up 2.2% at 27,318. The RTS index in Russia dived 1.7% to 1896 and the ISE National-30 index in Turkey surged 3.3% to 48,537.
It was a terrible Tuesday for the Indian markets as benchmark Sensex plunged over 550 points. Key indices which opened with a negative gap, further lost ground soon after the Reserve Bank of India announced that it had hiked the interest rates for the third time in two months as policymakers try to contain inflation, keeping it as high priority.
The RBI increased the benchmark repurchase rate by 50bps to 9% from 8.5% and also raised the cash reserve ratio by 25bps to 9% from 8.75%.
The banking and the realty stocks were badly beaten up with stocks like Axis Bank, ICICI Bank and realty majors DLF and Unitech slipping the most.
Among the 30-components of Sensex, 26 stocks were in red and only 4 stocks were in green. Reliance Industries, ICICI Bank, L&T and HDFC Bank were among the major laggards. On the other hand, Hindustan Unilever, Sterlite Industries, TCS and Infosys were among the major gainers.
Finally, the benchmark Sensex plunged 557 points to close at 13,791 and Nifty lost 142 points to close at 4,189.
HCC has slipped by 1% to Rs91. The company announced that, HCC-SEW-MEIL JV i.e. Hindustan Construction Co. Ltd (HCC), SEW Infrastructure Ltd and Megha Engineering & Infrastructure Ltd) (MEIL) secured a contract worth Rs6.39bn for construction of Barrage of around 3.5 km with Head Regulator across River Pranahita (PCLIS - Package-III) near Tummidi Hetti Village in Adilabad District of Andhra Pradesh, from Government of Andhra Pradesh, Irrigation and CAD Department. The scrip touched an intra-day high of Rs94 and a low of Rs89 and recorded volumes of over 7,00,000 shares on NSE.
Gail India slipped by 1.5% to Rs362. The company announced its Q1 results with a net profit of Rs8,968.7mn (up 31%) for the quarter ended June 30, 2008 as compared to Rs6,852.2mn. Total Income increased by 35% to Rs58,454.8mn for the quarter ended June 30, 2008 from Rs43,369.5mn for the quarter ended June 30, 2007
The scrip touched an intra-day high of Rs377 and a low of Rs355 and recorded volumes of over 4,00,000 shares on NSE.
Praj Industries sharply slipped by over 7% to Rs186 after the company announced that its Q1 net profit slipped 12% to Rs247.5mn for the quarter ended June 30, 2008 as compared to Rs283.5mn. Total Income increased by 10% to Rs1,567.9mn for the quarter ended June 30, 2008 from Rs1,412.3mn.
The scrip touched an intra-day high of Rs203 and a low of Rs184 and recorded volumes of over 1,00,000 shares on NSE.
Shares of Bharat Electronics declined by over 16% to Rs977 after the company’s Q1 net profit declined 90% to Rs25.1mn for the quarter ended June 30, 2008 as compared to Rs263mn. Total Income decreased from Rs4,731.6mn for the quarter ended June 30, 2007 to Rs4,450.8mn for the quarter ended June 30, 2008.
The scrip touched an intra-day high of Rs1165 and a low of Rs965 and recorded volumes of over 38,00,000 shares on NSE.
Essar Shipping was locked at 5% lower circuit to Rs113.75 after the company announced that it posted a net loss of Rs116mn for the quarter ended June 30, 2008 as compared to net profit of Rs711.5mn for the quarter ended June 30, 2007. However, total income increased from Rs2,176.1mn for the quarter ended June 30, 2007 to Rs3,416.5mn for the quarter ended June 30, 2008.
The scrip touched an intra-day high of Rs121 and a low of Rs113.75 and recorded volumes of over 41,000 shares on NSE.
Deccan Chronicle declined by over 5% to Rs111 after the company announced its Q1 results with net profit declining 27%. Net income declined to Rs609.8mn in the three months ended June 30 from Rs837.5mn a year earlier. The scrip touched an intra-day high of Rs118 and a low of Rs105 and recorded volumes of over 5,00,000 shares on NSE.
Shares of Ranbaxy sharply dropped by 3.5% to Rs474 after the company announced its Q2 net profit at Rs237.3mn (down 92%). However, revenues grew by 21.1% to Rs13.2bn. The scrip touched an intra-day high of Rs490 and a low of Rs468 and recorded volumes of over 11,00,000 shares on NSE.
Marksans Pharma surged by over 4% to Rs17.69 after the announced that it received Certificate of suitability for Metformin Hydrochloride drug substance from the European Directorate for the Quality of Medicines and Healthcare (EDQM).
With the grant of this certificate of Suitability for Metformin Hydrochloride drug substance by EDQM, the doors of European markets have opened for access for the Company's API business. The scrip touched an intra-day high of Rs17.81 and a low of Rs17.01 and recorded volumes of over 36,00,000 shares on NSE.
Government ends SBI’s monopoly in managing PF funds by allowing HSBC, ICICI Pru and Reliance Capital (BS)
L&T and Punj Lloyd join team to implement US$200bn Al Noor project (BL)
Nalco likely to shut down Orissa facility (BS)
IOC to set-up a maiden styrene butadiene rubber (SBR) project at Panipat with an investment of Rs7.61bn (FE)
Merck subsidiary plans to launch patented drugs (ET)
Tata Communications rolls out public telepresence service in collaboration with Indian Hotels, CII and Cisco Systems (ET)
ABB wins an order worth Rs4.55bn from Vedanta Aluminium (BS)
HCC JV bags order from Andhra Pradesh Government worth Rs6.39bn (BS)
TVS Motors is considering a plan to set-up a greenfield plant in China (BS)
Ashok Leyland is planning to replace its existing products with new ones by 2012-13 (BS)
Adani Group and Lanco wins Mahavitaran bids for purchasing 2,000 mw of power from independent power producers (BS)
MRPL may shelve plans to set-up a new refinery in Mangalore (BS)
Essar Steel is considering a bid for US-based United Coal Company (BS)
GCPL has decided to raise prices of soaps by 6-7% (DNA)
Educomp Solutions is setting-up centres to coach aspiring CAs through video conferencing (DNA)
Rolta acquires US-based WhittmanHart Consulting, a business intelligence consulting firm (ET)
NIIT join hands with SAS Institute to offer business intelligence technologies training to students and professionals globally (FE)
Moser Baer arm to raise US$50mn for expansion in the movie space (ET)
Balkrishna Industries is de-bottlenecking and expanding capacities at its Aurangabad plant (DNA)
Lakshmi Precision Screws is planning a facility at Uttarakhand by fiscal-end (DNA)
Economic Front Page
RBI raises repo rate by 50 bps and CRR by 25 bps (ET)
OPEC President, Chakib Khelil, says that crude oil prices could fall to around US$78/barrel (ET)
Government to introduce mobile number portability in metros by mid-2009 (ET)
Coal India may invite bids for re-opening 18 mines (BL)
Railway Minister expects profit to cross Rs1lakh crore in the next fiscal (FE)
India’s Gems and Jewellery exports are expected to grow by 15-20% in the current fiscal according to GJEPC (ET)
Engineering exports grow 24% yoy in the first quarter of FY09 to US$8.7bn (ET)
APDRP likely to miss the deadline yet again (ET)
Chennai Airport upgrade project gets clearance from PIB (BL)
BSE Bulk Deals to Watch - July 30 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
29/7/2008 530135 AKANKSH FINV RITA RAJKUMAR SINGH. S 25200 10.44
29/7/2008 531683 ANKU DR PH MORGAN STANLEY MAURITIUS CO LTD B 50000 234.22
29/7/2008 590059 BIHAR TUBES APL INFRASTRUCTURE PRIVATE LIM B 476487 162.44
29/7/2008 590059 BIHAR TUBES SECUROCROP SECURITIES INDIA P S 460000 162.49
29/7/2008 532271 CYBERMAT INF BASMATI SECURITIES PVT LTD B 2122692 4.49
29/7/2008 532271 CYBERMAT INF S V ENTERPRISES B 574989 4.51
29/7/2008 532271 CYBERMAT INF S V ENTERPRISES S 574989 4.46
29/7/2008 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 28500 10.44
29/7/2008 532836 GREMAC INFRA SOPHIA GROWTH A CLASS OF SOMERSET INDIA FUND S 100000 88.00
29/7/2008 511682 IFL PRMOTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 16000 19.98
29/7/2008 532100 INDOCITY INF ANIL JAIN HUF B 70518 5.44
29/7/2008 532175 INFOTECH ENR COURAGE CAP MGT LLC SSIF B 463817 205.00
29/7/2008 532175 INFOTECH ENR CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD S 463817 205.00
29/7/2008 530885 JAISAL SECUR VENUGOPAL REDDY S B 25000 37.00
29/7/2008 530885 JAISAL SECUR CANOS TRADING PVT LTD. S 25000 37.00
29/7/2008 531802 PRERNA INFR VIJAY CHANDULAL SHAH S 39000 15.50
29/7/2008 532218 SOUTH INDIA COURAGE CAP MGT LLC SSIF B 629039 107.00
29/7/2008 532218 SOUTH INDIA CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD S 629039 107.00
29/7/2008 508976 SPANC TELESY KAPIL PURI B 100054 96.68
29/7/2008 532984 TYCHE PERIPH NANDINI PASARI B 200000 66.55
NSE Bulk Deals to Watch - July 30 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
29-JUL-2008,ANSALINFRA,ANSAL PROPERTIES & IND LT,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,BUY,600072,89.97,-
29-JUL-2008,GSSAMERICA,GSS America Infotech Limi,MANISH VRAJLAL SARVAIYA,BUY,79431,265.25,-
29-JUL-2008,HIMACHLFUT,Himachal Fut Comm Ltd,ADROIT FINANCIAL SERVICES PVT LTD,BUY,2994491,18.47,-
29-JUL-2008,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,BUY,4024305,42.81,-
29-JUL-2008,IFCI,IFCI Ltd.,CLEAN FINANCE & INVESTMENT LTD,BUY,6647150,42.95,-
29-JUL-2008,IFCI,IFCI Ltd.,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,BUY,8030000,42.71,-
29-JUL-2008,POLARIS,Polaris Software Lab Ltd,P R B SECURITIES PRIVATE LTD,BUY,744939,100.56,-
29-JUL-2008,POLARIS,Polaris Software Lab Ltd,PRASHANT JAYANTILAL PATEL,BUY,506943,100.20,-
29-JUL-2008,SHREEASHTA,Shree Ashtavinayak Cine V,SARANG RAKESH WADHAWAN,BUY,55500,539.98,-
29-JUL-2008,GSSAMERICA,GSS America Infotech Limi,MANISH VRAJLAL SARVAIYA,SELL,79431,265.26,-
29-JUL-2008,HIMACHLFUT,Himachal Fut Comm Ltd,ADROIT FINANCIAL SERVICES PVT LTD,SELL,2930928,18.52,-
29-JUL-2008,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,SELL,4250975,42.79,-
29-JUL-2008,IFCI,IFCI Ltd.,CLEAN FINANCE & INVESTMENT LTD,SELL,6653350,42.97,-
29-JUL-2008,KHAITANLTD,Khaitan (India) Ltd.,ARADHANA INVESTMENTS LTD.,SELL,30014,31.50,-
29-JUL-2008,POLARIS,Polaris Software Lab Ltd,P R B SECURITIES PRIVATE LTD,SELL,730939,100.72,-
29-JUL-2008,POLARIS,Polaris Software Lab Ltd,PRASHANT JAYANTILAL PATEL,SELL,506943,100.44,-
29-JUL-2008,SHREEASHTA,Shree Ashtavinayak Cine V,MAVI INVESTMENT FUND LTD.,SELL,55000,539.99,-
Tuesday, July 29, 2008
Post Session Commentary - July 29 2008
Market failed to recover from sharp losses and closed in deep red on account of monetary tightening by RBI. To curb the inflation, Central bank announced the hike in Repo rate by 50 basis points to 9% and CRR by 25 basis points to 9%, which will be effective from 30th August 2008. Repo rate will be at 9% for the first time since October 2000 and CRR at 9% for the first time since November 1999. Indian market opened on the back foot tracking the weak global cues and tumbled down further after the RBI’s quarterly review, in which it hikes the key rates and this adds to the investors’ negative sentiment. The market kept on hovering in extremely territory without showing any sign of recovery till the end the session. Both NSE Nifty and BSE Sensex closed with losses of more than 3%. The BSE Sensex ended below 13,800 level and NSE Nifty closed below 4,200 mark. All indices closed in red. Out of which, the interest sensitive indices like Bank and Reality lost more than 8% and 5% respectively. Along with this, the Capital Goods index also lost more than 5%. Heavy selling was also witnessed from the Oil & Gas, Metal, Power and Auto stocks baskets. The market breadth was weak as 963 stocks closed in green while 1672 stocks closed in red and 72 stocks remained unchanged.
The BSE Sensex closed lower by 557.57 points at 13,794.31 and NSE Nifty ended down by 142.25 points at 4,189.85. The BSE Mid Caps closed with losses of 142.20 points at 5,488.58 and Small Cap ended down by 81.97 points 6831.01. The BSE Sensex touched intraday high of 14,153.12 and intraday low of 13,727.14.
The Reserve Bank of India has released its Macro Economic review, as it always does a day before the credit policy. According to this review broad money growth YoY was at 20.5 % as on 4th July 2008 as against 21.8% a year ago. The bank deposits YoY grew by 20.7 % as against 23.1 %. Along with this GDP growth according to the revised estimate of CSO (Central Statistical Organization) is 9 % for the year ended 2007-08 in comparison to 9.6 % in 2006-07. The review also pointed out that India''s budget deficit may come under pressure in 2008-09 as the government’ spending is increasing. According to this report inflation is global phenomenon and is high in major economies due to the impact of high food and fuel prices and strong demand conditions.
Lossers from the BSE are HDFC Bank Ltd (8.71%), ICICI Bank Ltd (8.45%), Reliance Industrial Infra (7.99%), Maruti Suzuki (7.03%), SBI (6.84%), Tata Motors (6.84%), L&T Ltd (6.52%), M&M Ltd (5.54%), DLF Ltd (5.52%), HDFC (5.21%) and JP Associates (5.10%).
The BSE Capital Goods index lost 586.21 points to close at 11,320.60. Major lossers are Bharat Elect (16.28%), Praj Indus (7.46%), L&T Ltd (6.52%), Siemens Ltd (6.32%), Punj Lloyd (5.33%), Walchand In (4.57%) and Reliance Industrial Infra (3.95%).
The BSE Bank index closed lower by 562.22 points at 6,199.60. Major lossers are Bank of India (12.57%), Axis Bank (11.06%), Bank of Baroda (9.53%), Indian Overseas Bank (9.52%), HDFC Bank Ltd (8.71%), ICICI Bank Ltd (8.45%), Oriental Bank of Commerce (8.22%), and Punjab National Bank (8.05%).
The BSE Oil & Gas index ended down by 349.33 points at 9,303.57. As Aban Offshore (5.99%), Reliance Nat Res (5.73%), HPCL (5.26%), BPCL (4.81%), Reliance (4.31%), ONGC (3.02%) and Essar Oil Ltd (2.97%) closed in negative territory.
The BSE Reality index ended lower by 281.41 points at 4,979.71. As Indiabull Real (7.98%), Unitech Ltd (6.50%), Mahindra Life (6.17%), DLF Ltd (5.52%), Akruti City (5.36%), Sobha Dev (4.98%), and Parsvnath (4.33%) closed in negative territory.
The BSE Metal index closed down by 236.36 points at 12,130.36. Lossers are Gujarat Nre C (8.07%), HIndalc (4.72%), Welspan Gujarat Sr (4.69%), Steel Authority (4.33%), Ispat Industries (4.03%), and Tata Steel (3.25%).
The BSE Auto index closed lower by 150.59 points at 3,573.21. Major lossers are Maruti Suzuki (7.03%), Tata Motors (6.84%), M&M Ltd (5.54%), Hero Honda Motors (4.23%), Exide Industries (3.56%), Bajaj Auto (2.63%) and MRF Ltd (2.55%).
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