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Tuesday, March 18, 2008
NSE Bulk Deal Watch - March 18 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
18-Mar-08,AMTEKINDIA,Amtek India Limited,AMTEK PHARMACEUTICALS PVT LIMITED,BUY,3507000,88.72,-
18-Mar-08,AMTEKINDIA,Amtek India Limited,AMTEK TECHNOLOGIES & SOLUTIONS LTD,BUY,3134401,90.2,-
18-Mar-08,AMTEKINDIA,Amtek India Limited,AMTEK TELEFILMS LIMITED,BUY,4475000,89,-
18-Mar-08,AMTEKINDIA,Amtek India Limited,BAWA PHARMACEUTICALS PVT LIMITED,BUY,2450000,90,-
18-Mar-08,ESABINDIA,Esab India Ltd.,RUANE CUNNIFF&GOLDFARB INC SUB A/C.ACACIA BANYAN PARTNERS,BUY,100000,447.14,-
18-Mar-08,GSSAMERICA,GSS America Infotech Limi,B K SHAH AND CO,BUY,80193,667.52,-
18-Mar-08,GSSAMERICA,GSS America Infotech Limi,CHOKHANI SECURITIES LTD,BUY,91938,655.94,-
18-Mar-08,GSSAMERICA,GSS America Infotech Limi,TRIPLET TRADERS PVT LTD,BUY,78223,665.29,-
18-Mar-08,GSSAMERICA,GSS America Infotech Limi,V AND U CAPLEASE PVT LTD,BUY,109220,651.71,-
18-Mar-08,GTL,GTL Limited,GLOBAL ASSET HLDG CORIN P.LTD,BUY,806326,237.28,-
18-Mar-08,IBREALEST,Indiabulls Real Estate Li,QUANTUM (M) LIMITED,BUY,6050102,455.79,-
18-Mar-08,KOUTONS,Koutons Retail India Limi,PASS PORT INDIA INVESTMENT,BUY,770006,850,-
18-Mar-08,ORCHIDCHEM,Orchid Chemicals Ltd.,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,437490,121.8,-
18-Mar-08,ORCHIDCHEM,Orchid Chemicals Ltd.,P R B SECURITIES PRIVATE LTD,BUY,397045,118.49,-
18-Mar-08,ORCHIDCHEM,Orchid Chemicals Ltd.,R.M. SHARE TRADING PVT LTD,BUY,410306,119.94,-
18-Mar-08,ORCHIDCHEM,Orchid Chemicals Ltd.,TRANSGLOBAL SECURITIES LTD.,BUY,592843,119.36,-
18-Mar-08,RATNAMANI,Ratnamani Metals & Tubes,ELARA INDIA OPPORTUNITIES FUND LIMITED,BUY,96100,799.66,-
18-Mar-08,RKFORGE,Ramkrishna Forgings Ltd,UNO METALS LTD,BUY,80065,191.37,-
18-Mar-08,SOLEMS,Solectron EMS India Limit,B K SHAH AND CO,BUY,64663,216.26,-
18-Mar-08,TNPL,Tamil Nadu Newsprint ,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,BUY,902111,93,-
18-Mar-08,TULSI,Tulsi Extrusions Limited,GOPAL TRADERS,BUY,63762,79.2,-
18-Mar-08,TULSI,Tulsi Extrusions Limited,H K STOCK SERVICES PVT. LTD.,BUY,64716,78.3,-
18-Mar-08,TULSI,Tulsi Extrusions Limited,KASHISH FINSTOCK,BUY,62614,75.18,-
18-Mar-08,TULSI,Tulsi Extrusions Limited,MANISH VRAJLAL SARVAIYA,BUY,72122,80.28,-
18-Mar-08,TULSI,Tulsi Extrusions Limited,PRASHANT JAYANTILAL PATEL,BUY,115477,80.82,-
18-Mar-08,AMTEKINDIA,Amtek India Limited,ALLIANCE INTEGRATED METALIKS LIMITED,SELL,2450000,90,-
18-Mar-08,AMTEKINDIA,Amtek India Limited,AMTEK CRANK SHAFTS INDIA LIMITED,SELL,2475000,89,-
18-Mar-08,AMTEKINDIA,Amtek India Limited,AMTEK ENGINEERING CENTRE LIMITED,SELL,2000000,89,-
18-Mar-08,AMTEKINDIA,Amtek India Limited,AMTEK LABORATORIES LTD,SELL,2500000,89,-
18-Mar-08,AMTEKINDIA,Amtek India Limited,AMTEK TECHNOLOGIES & SOLUTIONS LTD,SELL,1,87.45,-
18-Mar-08,AMTEKINDIA,Amtek India Limited,W.LD. INVESTMENT PVT. LTD,SELL,740500,89,-
18-Mar-08,ESABINDIA,Esab India Ltd.,HDFC ASSET MANAGEMANT CO.LTD.,SELL,92248,448,-
18-Mar-08,GRUH,Gruh Finance Limited,HSBC FINANCIAL SERVICES(MIDDLE EAST) LIMITED,SELL,208000,151.54,-
18-Mar-08,GSSAMERICA,GSS America Infotech Limi,B K SHAH AND CO,SELL,80193,668.47,-
18-Mar-08,GSSAMERICA,GSS America Infotech Limi,CHOKHANI SECURITIES LTD,SELL,91938,661.39,-
18-Mar-08,GSSAMERICA,GSS America Infotech Limi,TRIPLET TRADERS PVT LTD,SELL,78223,680.4,-
18-Mar-08,GSSAMERICA,GSS America Infotech Limi,V AND U CAPLEASE PVT LTD,SELL,109220,671.53,-
18-Mar-08,IBREALEST,Indiabulls Real Estate Li,MORGAN STANLEY DEAN WITTER MAURITIUS CO. LTD,SELL,5552480,457.47,-
18-Mar-08,KOUTONS,Koutons Retail India Limi,BSMA LTD,SELL,770006,850,-
18-Mar-08,ORCHIDCHEM,Orchid Chemicals Ltd.,ALLIANZ GLOBAL INVESTORS SELECTION RCM ORIENTAL INCOME FUND,SELL,966265,120.59,-
18-Mar-08,ORCHIDCHEM,Orchid Chemicals Ltd.,CHOLAMANDALAM DBS FINANCE LTD.,SELL,1179367,112.99,-
18-Mar-08,ORCHIDCHEM,Orchid Chemicals Ltd.,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,437490,122.12,-
18-Mar-08,ORCHIDCHEM,Orchid Chemicals Ltd.,MACQUARIE BANK LIMITED,SELL,675000,114.98,-
18-Mar-08,ORCHIDCHEM,Orchid Chemicals Ltd.,P R B SECURITIES PRIVATE LTD,SELL,397045,118.7,-
18-Mar-08,ORCHIDCHEM,Orchid Chemicals Ltd.,R.M. SHARE TRADING PVT LTD,SELL,410306,119.83,-
18-Mar-08,ORCHIDCHEM,Orchid Chemicals Ltd.,TRANSGLOBAL SECURITIES LTD.,SELL,572893,119.9,-
18-Mar-08,PRITHVI,Prithvi Information Solut,DECENT FINANCIAL SERVICES PVT LTD,SELL,101765,143.47,-
18-Mar-08,RATNAMANI,Ratnamani Metals & Tubes,BHARGAVA KULDIP,SELL,95000,800,-
18-Mar-08,RKFORGE,Ramkrishna Forgings Ltd,AKG FINVEST LTD,SELL,80000,191.38,-
18-Mar-08,SOLEMS,Solectron EMS India Limit,B K SHAH AND CO,SELL,65970,215.59,-
18-Mar-08,TNPL,Tamil Nadu Newsprint ,BSMA LIMITED,SELL,902111,93,-
18-Mar-08,TULSI,Tulsi Extrusions Limited,GOPAL TRADERS,SELL,63762,80.2,-
18-Mar-08,TULSI,Tulsi Extrusions Limited,H K STOCK SERVICES PVT. LTD.,SELL,4716,80,-
18-Mar-08,TULSI,Tulsi Extrusions Limited,KASHISH FINSTOCK,SELL,57236,78.97,-
18-Mar-08,TULSI,Tulsi Extrusions Limited,MANISH VRAJLAL SARVAIYA,SELL,72122,78.77,-
18-Mar-08,TULSI,Tulsi Extrusions Limited,PRASHANT JAYANTILAL PATEL,SELL,115477,79.67,-
BSE Bulk Deals to Watch - March 18 2008
Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
18/3/2008 505665 ABC BEARINGS BSMA LTD S 186481 82.00
18/3/2008 517356 ACI INFOCOM ALOK GUPTA S 48000 4.81
18/3/2008 506074 ARSHIYA INTL TREE LINE ASIA MASTER FUND SINGAPORE PTE LTD B 3750000 186.00
18/3/2008 506074 ARSHIYA INTL MERRILL LYNCH CAPITAL MARKETS ESPANA SA SZ S 3750000 186.00
18/3/2008 532215 AXIS BANK ORIENT GLOBAL TAMARIND MAURITIUS LTD B 3000000 792.85
18/3/2008 522105 BIRLA PRETEC SHAH SAMIR D B 95000 45.51
18/3/2008 522059 CHAMPAGN IND MORGAN STANLEY MAURITIUS CO LTD B 65000 580.00
18/3/2008 522059 CHAMPAGN IND KBS TRADING PVT LTD S 65000 580.00
18/3/2008 507833 COMPUTER POI SHANTI KUMAR SURAN S 45823 2.73
18/3/2008 531067 CONTIL I LTD NISHA JAIN S 18357 8.18
18/3/2008 500840 EIH LIMITED TREE LINE ADVISORS HONG KONG LTD B 2400000 137.50
18/3/2008 500840 EIH LIMITED CREDIT SUISSE SINGAPORE LIMITED S 2400000 137.50
18/3/2008 531913 GOPAL IRON AYUSH MITTAL B 31500 8.10
18/3/2008 531913 GOPAL IRON SATYA PRAKASH MITTAL S 31500 8.10
18/3/2008 532909 GRABAL ALOK DIVYA SHAKTI TRADING LTD B 1900000 104.99
18/3/2008 532909 GRABAL ALOK NATIONWIDE HOLDING PVT LTD S 1895776 105.00
18/3/2008 511288 GRUH FINANC HSBC FINANCIAL SERVICES MIDDLE EAST LIMITED S 292000 151.33
18/3/2008 532951 GSS AMERICA B K SHAH AND CO B 71113 665.36
18/3/2008 532951 GSS AMERICA SURESH KUMAR JASRAJ JAIN B 85000 665.28
18/3/2008 532951 GSS AMERICA B K SHAH AND CO S 71100 664.84
18/3/2008 532951 GSS AMERICA SURESHKUMAR JASRAJ JAIN S 85000 680.05
18/3/2008 532708 GVK POWERINF TREE LINE ADVISORSHONG KONG LTD B 8695000 38.50
18/3/2008 532708 GVK POWERINF CREDIT SUISSE SINGAPOREIMITED S 8830095 38.50
18/3/2008 524342 INDO BORAX C RAJIV ARORA B 23604 71.44
18/3/2008 524342 INDO BORAX C RAJIV ARORA S 22757 73.43
18/3/2008 532771 JHS SVEN FE SECURITIES PVT LTD B 324530 38.00
18/3/2008 532771 JHS SVEN ANMOL FINPRO PVT LTD S 325000 38.00
18/3/2008 523810 KALE FILMS NITIN R PUNMIYA B 286835 1.76
18/3/2008 531687 KARUT NET L SURYARAO KARUTURI B 300000 193.33
18/3/2008 512413 KHAITAN WVG SHREY SANJEEV AEREN B 30000 67.00
18/3/2008 512413 KHAITAN WVG SANJEEV JAI AEREN B 35000 67.00
18/3/2008 512413 KHAITAN WVG SUNITA SANJEEV AEREN B 35000 67.00
18/3/2008 512413 KHAITAN WVG SANJEEV GOENKA S 29687 67.00
18/3/2008 590011 MOVING PICTU-PMS VATICAN COMMERCIALS LTD S 250000 22.75
18/3/2008 590057 NORTHGATE TE MERRILL LYNCH CAPITAL MARKETS ESPANA SA SV B 500000 334.99
18/3/2008 531996 ODYSSEY CORP ATHERSTONE ENERGYANDNATURAL RESOURCESLIMITED B 100500 28.81
18/3/2008 531996 ODYSSEY CORP D P MERCHANT SAND PVT. LTD. S 100000 28.78
18/3/2008 531092 OM MET INFRA TREE LINE ASIA MASTER FUND SINGAPORE PTE LTD B 901500 38.50
18/3/2008 531092 OM MET INFRA SWISS FINANCE CORPORATION LTD S 901500 38.50
18/3/2008 524372 ORCHID CHEM ASSET ALLIANCE SEC PVT LTD S 333776 121.61
18/3/2008 524372 ORCHID CHEM MACQUARIE BANK LIMITED S 625000 115.47
18/3/2008 532748 PRIME FOCUS UBS SECURITIES ASIA LTD B 125000 604.96
18/3/2008 532675 PRITHVI INFO CHANDRA FIN. SERV. PVT.LTD S 119939 149.61
18/3/2008 531611 PRRANET INDU CHANDRAKANT BHAGILAL SHAH HUF B 413950 1.46
18/3/2008 531611 PRRANET INDU CHANDRAKANT BHAGILAL SHAH HUF S 513950 1.46
18/3/2008 526813 RAGHUN INTER SATYA PRAKASH MITTAL B 40782 9.20
18/3/2008 526813 RAGHUN INTER SATYA PRAKASH MMITTAL HUF S 36782 9.20
18/3/2008 523838 SIMPLX INFRA TREE LINE ADVISORSHONG KONG LTD B 550500 520.00
18/3/2008 523838 SIMPLX INFRA CREDIT SUISSE SINGAPORE LIMITED S 550500 520.00
18/3/2008 504398 SJ CORP LTD HARJIBHAI PURSHOTTAMBHAI PATEL S 1000 389.22
18/3/2008 523455 TECHTRAN POL SANJAY KUMAR B 95500 13.57
18/3/2008 523455 TECHTRAN POL SANJAY AGARWAL S 58500 13.58
18/3/2008 532953 V GUARD IND N D NISSAR B 232836 72.18
18/3/2008 532953 V GUARD IND N D NISSAR S 232836 72.36
18/3/2008 526755 VELAN HOTELS SATYA PRAKASH MITTAL HUF B 47600 10.35
18/3/2008 526755 VELAN HOTELS PRATYUSH MITTAL S 47600 10.35
Post Market Commentary - March 18 2008
The Indian market closed with marginal gains after presenting a good show but a lot of volatility was witnessed during the trading session. The market gave up most of its gains as the profit booking across the counters prevailed. Though the market opened almost on a flat note but gathered the momentum towards the mid session as the buying intensified across the counters. From the sectoral point, Capital goods and Realty scrips remained the centre of attraction as most buying was witnessed from theses baskets. The BSE Sensex closed higher by 23.97 points at 14,833.46 and NSE Nifty grew by 29.9 points to close 4533. However, the Mid Caps and Small Caps remained out of favor as most selling was witnessed from these counters to close lower by 90.44 points and 157.03 points at 6,033.91 and 7,365.20 respectively. The market breadth turned weak as 1918 stocks closed in red as against 749 stocks that closed in green.
The Capital Goods index surged 227.57 points to close at 12,933.88. Major gainers are Havell India (6.21%), Siemens (4.44%), Elecon Eng (3.21%), Crompton Greaves (2.34%) and ABB (2.45%).
The BSE Realty index closed higher by 136.47 points to close at 7,243. Scrips that jumped are Anant Raj Inds (7.18%), DLF (5.30%), Unitech (5.26%) and Phoenix Mill (2.77%).
The Metal index declined by 284.74 points to close at 13,440.78. Major losers are Jindal Saw (9.05%), Gujarat NRE (7.42%), SH. Precoated (4.97%), Hind Zinc (4.68%) and Sterlite Inds (4.28%).
The Oil and Gas index fell by 90.26 points to close at 9,711.60 as Aban Off shore (2.99%) and Essar Oil (2.27%) closed lower while BPCL (3.95%), HPCL (2.99%) and Cairn India (2.71%) closed higher.
The Bankex index slipped by 75.19 points to close at 7,493.97 as Yes bank (14.42%), IOB (7.51%) and Canara bank (6.86%) closed in red while ICICI bank (1.39%), PNB (0.60%) and BOB (0.31%) closed in green.
From the Power index, Siemens 4.44%, Reliance Energy 3.09%, ABB 2.45% and Suzlon Energy 1.53% closed in positive.
Market Close: is this the sign of Decoupling?
A Bounce back in the market at the mid session after a weak start. Indices managed to gain some mometum due to buying in heavyweights. Advance tax numbers had little to support the market as some level of interest was seen in stocks which tumbled in last few sessions. Markets traded choppy there on, Indices rallied over 300 points but final hours of trade witnessed profit booking which pulled the Sensex down to end flat. Small caps and Mid caps took the hit while large caps managed to survive. Realty, Power and IT stocks saw interest while Banking, Metals and Oil & Gas were among losers. Asian indices ended in green. While European indices are trading positive.
Sensex closed down by 10 points at 14799.91. Weighing on the Sensex were losses in Bajaj Auto (632.65,-4 percent), TISCO (639.25,-3 percent), SBI (1592.2,-3 percent), Hindalco (161.55,-2 percent) and Infosys (1313.1,-2 percent). Losses were restricted by gains in HLL (231.05,+4 percent), Ranbaxy (452.85,+3 percent), TCS (817.3,+3 percent), Rel Energy (1227.65,+3 percent) and RCVL (497.4,+3 percent).
Unitech gained 5% and seems good in the Realty Sector. Unitech is one of India's largest and diversified real estate developers with an emerging pan-India presence. It enjoys leadership in markets of NCR National Capital Region and Kolkata. Unitech?s core strengths of land acquisition, reputation in building townships and relationships with governments and customers have enabled it to build a diversified portfolio. Unitech has a diversified land bank of 13,758 acres with a total saleable area of ~689m sq ft . Apart from aggressively launching and selling residential and commercial projects, Unitech has extensively widened its business scope by initiating forays into retail, hospitality, entertainment and SEZs. In addition, it also has a small presence in power transmission, prefabricated construction and ready mix concrete. Unitech land acquisition cost is approximately around Rs 200 per sq.ft . This gives Unitech a major advantage as it has a robust land bank and that too at a very attractive rate. The value of land has appreciated manifolds in recent times.Unitech participates only in tenders and not in auction?s . In last 12 months it has participated in 5-6 tenders and has won all of them. This shows Unitech?s strength , aggressive and planning. Valuations carry no meaning given that earnings in real estate can be lumpy. Best valuation parameters are based on the value of Unitech's land bank and to add to that the profitability of the future. We are positive on Unitech among the Real estate players. Do read our note to know more. Reality stocks rallied for the day with DLF up by 4.5%.
Larson and Tubro's heavy engineering division bagged a contract valued at Euro 28 mn for supplying the coal gasifier and syngas cooler assembly to Hebi Coal and Electricity, a subsidiary of Zhongyuan Coal Chemical Industry Group, China. The structure, which is expected to weigh 1,740 MT, will be the world's largest and heaviest gasifier assembly and will form the heart of a methanol plant with a capacity of 600,000 tonnes per annum. The equipment will be manufactured from advanced technology steels at L&T's manufacturing facilities at Powai & Hazira. The Hazira facilities are situated on the waterfront with easy access to the sea for ease of shipment. The order backlog for the E&C segment stood at Rs 47600 cr, almost 3.5 times the segment's FY07 revenues. Difficult to comment here but the stock ended higher by 3%, while BHEL jumped higher by 4%.
Technically Speaking : Market could sustain the above 15000 levels as Sensex made an intra day high of 15165 and low of 14677. The breadth was in favor of Declines, as there were 748 Advances against 1925 Declines. Market turnover was a decent at Rs 6926crs. Sensex did our target given in midmarket. Sensex support stands at 14700, below 14700 sensex may fall upto 14400. Resistance lies at 15200.
Market ends flat amid sharp swing
The market showed signs of easing off in the first half as the Sensex dropped nearly 132 points, but recovery in the afternoon trades and selective buying towards the close saw the Sensex end higher. Exhibiting sharp volatility in the first half, the Sensex resumed with a negative gap of 84 points at 14,726 and soon crossed the 17,700 mark to touch an intra-day high of 14,677 on sustained selling across the board. However, the market soon drifted into positive territory as a sharp bout of buying pressure dragged the index to an intra-day high of 15,170. After erasing losses in the noon trades, the Sensex once again notched up significant gains on renewed buying support before profit taking saw the Sensex shed some gains and end the session at 14,833, up 24 points. However, the Nifty after a mixed outing ended higher at 4,533, up 30 points.
However, the market breadth ended weak. Of the 2,734 stocks traded on the BSE 1,916 stocks declined, 753 stocks advanced and 65 stocks ended unchanged. Most of the sectoral indices ended with steady gains. However, the BSE Metal index dropped 2.07% at 13,441, while the BSE Bankex & CD index declined by around 1% each.
Select heavyweights helped the Sensex end at higher levels. Reliance pack led the recovery with Reliance Energy rising by 3.09% at Rs1,227.65 and Reliance Communications advancing by 3.03% at Rs476. Among the other major gainers DLF jumped 5.30% at Rs634.75, HUL scaled up 3.80% at Rs231.05, Ranbaxy Laboratories moved up by 3.40% at Rs452.85 and TCS gained 3.17% at Rs817.30. However, Jaiprakash Associates dropped 3.56% at Rs200.65, Tata Steel tumbled 2.92% at Rs639.25, SBI shed 2.52% at Rs1,592 and Hindalco lost 2% at Rs161.55. Infosys, RIL, ACC and Grasim also ended with losses.
Select consumer goods (CG) stocks rallied sharply. Havells India zoomed 6.21% at Rs430, Siemens advanced 4.44% at Rs653.60, Elecon Engineering added 3.21% at Rs170.20 and Punj Lloyd gained 3.17% at Rs307.30.
Metal stocks declined sharply on sustained selling pressure. Gujarat NRE tanked 7.42% at Rs134.85, Jindal Saw dropped 6.40% at Rs609.60, SH Precoated shed 4.97% at Rs151.05, Hindustan Zinc lost 4.68% at Rs518.90 and Sterlite Industries dipped 4.28% at Rs692.65.
Over 2.77 crore RNRL shares changed hands on the BSE followed by JaiPrakash Associates (2.55 crore shares), RPL (2.01 crore shares), Orchid Chemicals (1.13 crore shares) and GVK (1.09 crore shares).
Market ends in green
A rebound on the bourses after yesterday's sharp slump proved short lived as the Sensex gave up most of its intra-day gains in choppy trade. The market registered small gains for the day. The market had surged in afternoon trade after reports of top corporates paying higher advance tax in the fourth installment of 15 March 2008, raised expectations of good Q4 March 2008 results. Firm European markets had also aided the rally. The market had witnessed a bout of volatility earlier in the day.
Index heavyweight Reliance Industries (RIL) declined. Hindustan Unilever and DLF were major gainers from Sensex pack. Jaiprakash Associates and Tata Steel were major losers from the Sensex pack. The market breadth was weak. Asian markets which opened before Indian market, were mostly in green.
The 30-share BSE Sensex rose 23.97 points or 0.16% at 14,833.46. It hit a high of 15,164.73 in afternoon trade. At day’s high, Sensex rose 355.24 points. It hit a low of 14,677.24 in early trade, its lowest level since late August 2007. At day’s low Sensex lost 132.35 points.
The broader based S&P CNX Nifty ended up 29.9 points or 0.66% at 4,533.
The US Federal Reserve is widely expected to slash its benchmark interest rate, currently at 3% at its policy meeting later in the day. Fed funds futures are reflecting expectations the US central bank will cut its key fed funds rate by 100 basis, with an outside change of 125 basis-point cut. The move would further widen the interest rate differentials between the United States and Asian countries, which could in turn help spur capital inflows into the region.
BSE clocked a turnover of Rs 6926 crore, higher than Monday (17 March 2008)'s Rs 5722.92 crore.
Nifty March 2008 futures were at 4544, at a premium of 11 points as compared to spot closing of 4533.
The NSE's futures & options (F&O) segment turnover was Rs 47,532.30 crore, which was higher than Rs 40,058.11 crore on Monday, 17 March 2008.
As per the provisional figures on NSE, foreign institutional investors sold shares worth Rs 1,011.05 crore today, 18 March 2008 and domestic funds bought shares worth Rs 177.33 crore.
The market breadth was weak: On BSE 1,925 shares declined as compared to 745 shares that advanced. 45 shares remained unchanged. 18 out of 30 Sensex stocks were trading in green.
The BSE Mid-Cap index declined 1.48% to 6,033.91 and BSE Small-Cap index declined 2.09% to 7,365.20.
BSE Consumer Durables index (down 0.68% to 3,613.90), BSE Oil & Gas index (down 0.92% to 9,711.60), BSE Metal index (down 2.07% to 13,440.78), BSE IT index (up 0.04% to 3,298.87), BSE Bankex (down 0.99% to 7,493.97), BSE PSU index (up 0.01% to 7,154.31) underperformed Sensex.
BSE Power index (up 0.62% to 2,992.01), BSE HealthCare index (up 0.64% to 3,644.93), BSE Capital Goods index (up 1.79% to 12,933.88) BSE Auto index (up 0.22% to 4,339.07), BSE Realty index (up 1.92% to 7,243) and BSE FMCG index (up 0.53% to 2,130.74) outperformed Sensex.
From the Sensex pack, Ranbaxy Laboratories (up 3.4% to Rs 452.85), Hindustan Unilever (up 3.8% to Rs 231.05), DLF (up 5.3% to Rs 634.75), Tata Consultancy Services (up 3.17% to Rs 817.30), Bharat Heavy Electricals (up 1.55% to Rs 1,823.80), Reliance Communications (up 3.03% to Rs 497.80) and Cipla (up 2.02% to Rs 204.45) were major gainers.
Jaiprakash Associates (down 3.56% to Rs 200.65), Tata Steel (down 2.92% to Rs 639.25), HDFC (down 1.05% to Rs 2,202.20), ACC (down 1.58% to Rs 758.80), Infosys (down 1.71% to Rs 1,313.10), Hindalco Industries (down 2% to Rs 161.55) were major losers from Sensex pack.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries declined 1.65% to Rs 2,145.35. The company has paid advance tax of Rs 443 crore in Q4 March 2008 as against Rs 118 crore paid in Q4 March 2007.
India’s largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 2.24% to Rs 2,763.95. L&T has paid Rs 170 crore as advance tax in the fourth installment this fiscal as against Rs 80 crore for the last quarter of the previous fiscal.
India's second largest power utility by revenue Reliance Energy (REL) rose 3.09% to Rs 1,227.65. The company may reportedly be close to inking an agreement with Indiabulls Real Estate (IBREL) to jointly develop a 6,000-acre multi-product special economic zone (SEZ) in Maharashtra’s Raigad district. The project may be developed as a 50:50 joint venture, reports added.
India’s largest private sector bank by net profit ICICI Bank rose 1.39% to Rs 767.95. The company has paid Rs 250 crore as advance tax in Q4 March 2008 as against Rs 125 crore in Q4 March 2007.
India’s largest commercial bank by net profit State Bank of India (SBI) was down 2.52% to Rs 1,592.20. SBI has paid Rs 1,148 crore advance tax in Q4 March 2008 as against Rs 690 crore in Q4 March 2007. Meanwhile, the rights issue of State Bank of India to raise Rs 16700 crore closes today. The bank, 59.73% owned by the government, is offering rights issue in the ratio of one share for every five held. The rights issue is priced at Rs 1,590 per share.
Ambuja Cements rose 1.1% to Rs 119.15. The company has paid Rs 170 crore as advance tax in Q4 March 2008 as against Rs 100 crore paid Q4 March 2007.
Indi’s largest truck maker by sales Tata Motors rose 2.09% to Rs 619. Tata Motors' advance tax outgo declined to Rs 75 crore in Q4 March 2008 compared to Rs 190 crore advance tax it paid in Q4 March 2007.
The world’s sixth largest steel maker Tata Steel declined 2.92% to Rs 639.25. The company paid advance tax of Rs 300 crore in Q4 March h 2008 compared to Rs 350 crore in Q4 March 2007.
Reliance Natural Resources clocked a highest volume of 2.77 crore shares on BSE. Jaiprakash Associates (2.55 crore shares), Reliance Petroleum (2.01 crore shares), Orchid Chemicals & Pharmaceuticals (1.13 crore shares) and GVK Power & Infrastructure (1.09 crore shares) were the other volume toppers in that order.
Jaiprakash Associates clocked the highest turnover of Rs 526.32 crore on BSE. Reliance Petroleum (Rs 310.23 crore), Reliance Capital (Rs 297.02 crore), Reliance Natural Resources (Rs 284.06 crore) and GSS America Infotech (Rs 274.42 crore) were other turnover toppers in that order.
European markets, which opened after Indian market, were firm. France’s CAC, Germany’s DAX and UK’s FTSE 100 rose 2.36% to 2.75%.
Asian markets were mostly in green. Key benchmark indices in South Korea, Hong Kong, Singapore,Taiwan and Japan were up between 0.66% to 1.6%. However, China's Shanghai Composite index was down 3.96%.
The Dow industrials ended slightly higher, but the S&P 500 and the Nasdaq fell on Monday after JPMorgan Chase & Co's deal to buy struggling brokerage Bear Stearns at a rock bottom price failed to dispel fears of deeper fallout from the escalating credit crisis. Asian markets were mostly in the red today.
Sensex tanked 951.03 points or 6.03% at 14,809.49 on Monday, 17 March 2008, as the fire sale of ailing US bank Bear Stearns and the Federal Reserve's emergency cut in its discount rate intensified concerns that there could be more victims of the global credit crisis. It was the second biggest single day point loss in the barometer index.
As per market buzz, a portfolio management scheme run by one of the biggest operators is facing big redemptions. With this being a curtailed trading week, traders are unlikely to build large positions. The market remains closed on Thursday (20 March 2008) on account of Id-E-Milad and on Friday (21 March 2008) on account of Good Friday.
The United Progressive Alliance-Left Committee on the Indo-US civil nuclear cooperation on Monday, 17 March 2008, felt that further discussions were needed on the draft India-specific safeguards agreement that was negotiated with the International Atomic Energy Agency (IAEA). The next meeting of the committee will be held in April 2008. External Affairs Minister Pranab Mukherjee said the outcome of the negotiations between India and the IAEA on the India-specific safeguards agreement was presented to the members of the committee at the meeting which was held on Monday.
A torrent of bad news has spooked bourses in the past few days with buyers deserting the market. Adding to the woes of domestic bourses already hit by tumbling global markets were earnings downgrade recently by brokerages of ICICI Bank, India’s biggest private sector bank in terms of net profit, and Larsen & Toubro, India’s biggest engineering and construction firm in terms of order book; lower-than-expected industrial production data for January 2008; and a surge in inflation.
The hike in short-term capital gains tax and alteration of tax treatment of the Securities Transaction Tax (STT) in Union Budget 2008-09 announced on 29 February 2008 has earlier dented sentiment. Buyers have stayed away from the bourses on continued uncertainty about the extent and duration of the credit crisis caused by the defaults in the US sub-prime mortgage market.
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Pre Market Watch - March 18 2008
The Indian Market is likely to have a positive opening today due to due to favoring cues from the global market. On Monday, the Indian market tumbled and faced bloodbath during the trading session. The fall was on the back of US Federal Reserve emergency step to cut in its discount rate by 25 basis point ignited the concerns of more global credit crisis. This fall is one of the worst in the history of the Indian stock market as the Sensex lost more than 6% in a single day and the NSE Nifty fell below the 4500 mark to lose more than 5% on a particular day. The BSE Sensex declined by 951.03 points to close at 14,809.49 and NSE Nifty fell by 242.7 points to close at 4,503.10. We expect that the market may remain choppy during the trading session.
The US Federal Reserve has cut its discount rate by 25 basis point to 3.25% from 3.5% earlier and this will be effective immediately. The Federal Reserve also extended the term of discount-window loans to 90 days from the 30 days.
On Monday, the US market closed mixed. The Dow Jones Industrial Average (DJIA) closed higher by 21.16 points at 11,972.25. The S&P 500 (SPX) index decreased by 11.54 points to close at 1,276.60 and the NASDAQ Composite (RIXF) fell by 35.48 points to close at 2,177.01.
Today the major stock markets in Asia are trading firm. Japan''s Nikkei trading higher by 172.05 points at 11,959.56 along with Hang Seng trading up by 132.54 points at 21,217.15 and Taiwan Weighted trading at 8,017.01 up by 11.55 points.
Indian ADRS closed in mixed. Satyam, Infosys and Wipro fell by (5.08%), (2.74%) and (1.94%) respectively. ICICI bank and HDFC bank fell by (12.84%) and (7.42%) respectively.
The FIIs on Monday stood as net seller in equity. The gross equity purchased was Rs3,545.60 Crore while the gross equity sold stood at Rs3,674.40 Crore. Therefore, the net investment of equity reported was (Rs128.80 Crore).
Today, Nifty has support at 4,404 and resistance at 4,592 and BSE Sensex has support at 14,426 and resistance at 15,268.
Market may be edgy
Overnight mix trend in the US markets and a rise in several Asian indices in the ongoing trading session may help the domestic indices rebound from lower levels. However, lack of clarity in the market and higher volatility may drag down the market. Among the indices, the Nifty could test higher levels at 4600 and has a supports at 4448. The Sensex has a likely support at 14723 and may face resistance at 15000.
Except MTNL & VSNL, which soared up over marginally, all the Indian ADRs on the US bourses ended in the red. ICICI Bank was the major losers and was down by 12.84% followed by HDFC Bank, Rediff, Satyam and Patni Computers which were down by over 4-7% each. Infosys, Wipro and Tata Motors shed over 2% each, Dr Reddy's was slightly also down in negative territory.
Crude oil prices in the US market was down, with the Nymex Light Crude oil for April delivery losing $4.53 to close at $105.68 a barrel. However, in the Commodity space, the Comex gold for April 08 series gained $3.10 to settle at $1,002.60.
Weakness may persist
The specter of more margin calls after a recent sharp slide may weigh on the bourses. Sensex tanked 951.03 points or 6.03% at 14,809.49 on Monday, 17 March 2008, as the fire sale of ailing US bank Bear Stearns and the Federal Reserve's emergency cut in its discount rate intensified concerns that there could be more victims of the global credit crisis. It was the second biggest single day point loss in the barometer index. Margin calls are normally triggered when markets show hyper volatility or witness abnormal slides
As per market buzz, a portfolio management scheme run by one of the biggest operators is facing big redemptions. With this being a curtailed trading week, traders are unlikely to build large positions. The market remains closed on Thursday (20 March 2008) on account of Id-E-Milad and on Friday (21 March 2008) on account of Good Friday.
As per provisional data, FIIs sold shares worth a net Rs 658.22 crore on Monday, 17 March 2008. Local funds bought shares worth a net Rs 211.48 crore on that day. Foreign institutional investors (FIIs) were net sellers of Rs 435.32 crore in the futures & options segment on Monday. According to data released by the NSE, FIIs were net sellers of index futures to the tune of Rs 287.77 crore and bought index options worth Rs 69.60 crore. They were net sellers of stock futures to the tune of Rs 204.87 crore and sold stock options worth Rs 12.29 crore
The Dow industrials ended slightly higher, but the S&P 500 and the Nasdaq fell on Monday after JPMorgan Chase & Co's deal to buy struggling brokerage Bear Stearns at a rock bottom price failed to dispel fears of deeper fallout from the escalating credit crisis. Asian markets were mostly in the red today.
The US Federal Reserve is widely expected to slash its benchmark interest rate, currently at 3% at its policy meeting later in the day. Market expectations are that it may cut Fed Funds rate by 75 to 100 basis points.
A torrent of bad news has spooked bourses in the past few days with buyers deserting the market. Adding to the woes of domestic bourses already hit by tumbling global markets were earnings downgrade recently by brokerages of ICICI Bank, India’s biggest private sector bank in terms of net profit, and Larsen & Toubro, India’s biggest engineering and construction firm in terms of order book; lower-than-expected industrial production data for January 2008; and a surge in inflation.
The hike in short-term capital gains tax and alteration of tax treatment of the Securities Transaction Tax (STT) in Union Budget 2008-09 announced on 29 February 2008 has earlier dented sentiment. Buyers have stayed away from the bourses on continued uncertainty about the extent and duration of the credit crisis caused by the defaults in the US sub-prime mortgage market.
US Market manages to bounce back
JP Morgan comes to Dow’s rescue after its deep discounted buyout of Bear Sterns
US Market started the day in a nervous mood but ultimately things got better in the course of the day. It was mainly JP Morgan, which came out at the rescue of the Dow, which was the only major index to close higher today, Monday, 17 March, 2008. Wight of the ten sectors ended in the red today, barring Industrials and Telecom sectors.
Stocks plunged worldwide yesterday after Bear Stearns accepted a buyout from JPMorgan Chase to avoid collapse. But it was JP Morgan that led to Dow’s gains today after the stock went up by 10% after the news of its deep-discounted buyout of Bear Sterns at $2/share. Bear Sterns stock was down by almost 84%. The Fed will provide up to $30 billion dollars in funding to back Bear's less liquid assets. The other option for Bear was bankruptcy.
After being down by almost 200 points at open, The Dow Jones industrial Average ended the day with a gain of 21.16 points at 11,972.25. But Nasdaq and S&P 500 finished in the red today. The Nasdaq Composite Index, finished lower by 35.5 points at 2,177. S&P 500 finished lower by 11.5 points at 1,276.
Twenty two out of thirty Dow stocks ended in the green today led by JP Morgan. The financial sector was responsible for today’s afternoon recovery.
In its first weekend emergency action in almost three decades, the Federal Reserve lowered the so-called discount rate by a quarter of a percentage point to 3.25% last Sunday and also offered to lend money to some unprecedented list of firms .
All Indian ADRs ended in red today. ICICI Bank and HDFC Bank were the largest losers sheding 7.4% and 12.8% respectively.
Among economic data, Industrial production fell 0.5% in February. This was worse than the expected decline of 0.1%. Also, the New York Empire State Index, a regional manufacturing survey, fell to -22.2 from -11.7. This was worse than the expected reading of -7.4. It marks the lowest Empire reading on record since the survey started in 2001.
Also, the Commerce Department reported the U.S. current account deficit narrowed by 3% to $172.9 billion in the fourth quarter, or 4.9% of gross domestic product.
Crude prices fell by more than $4 today. Prices fell after the dollar continued to remain under pressure today after economic concerns about an ongoing recession continued to haunt the US Market. It was the biggest daily loss for crude in 17 years. Crude-oil futures for light sweet crude for April delivery today closed at $105.68/barrel (lower by $4.5/barrel or 4.1%) on the New York Mercantile Exchange. They earlier surged to $111.8 a barrel earlier in the day, the highest since trading began in 1983. Prices rose as much as $1.59 and dropped as much as $6.98 today.
Volume on the New York Stock Exchange neared 2 billion, and declining stocks outpaced those advancing 5 to 1. On the Nasdaq, more than 1.1 billion shares were exchanged, and decliners topped advancing issues 3 to 1.
Tomorrow, the market will have February's Housing Starts and Producer Price data in the morning hours. Thereafter, The Federal Open Market Committee issues its latest monetary policy statement tomorrow afternoon.
Tempting offers...do you have the money?
'Tis one thing to be tempted, another thing to fall.
Those tempted to pick up stocks for the short term have ended up with a fall in their portfolio. In better times it made sense to think that a fall from higher levels make value attractive. But the world and the markets have undergone a sea change where most are left drowning. Those better off are frowning.
Global equity markets, particularly in India, may have over reacted to the emerging situation in the US. One is tempted to say this as blue chip shares on Wall Street managed to survive the mayhem despite what happened over the weekend, though technology stocks closed slightly lower. If one goes by what happened in the US market overnight, we are headed for some sort of a bounce back at the opening bell today. Thereafter, things may turn choppy and trend for the rest of the day will hinge, as always on global markets.
The undertone remains weak with the Sensex having lost more than 6,000 points in just two months. And, though valuations have fallen drastically, the bulls are extremely scared to venture into the market at this stage. If at all they do they are most likely to sell some of their existing holdings rather than make fresh purchases. Quite a few of them are still stuck with loss-making scrips and are unable to get rid of them. Even some of the blue chip stocks have got hammered out of shape. So, the crux of the problem is lack of buying. How long will the bulls stay away is anybody's guess.
Some say the market is oversold and that we in India are reading too much into the US imbroglio. Others say just like we witnessed excesses on the way to the all-time high, there has been too much selling on the down side. The Indian economy is perhaps the least dependent on the US. It is basically a domestic consumption led story, which remains largely in place. There has been a slowdown over the past few months, which again is more due to local issues rather than the US fiasco. Sure, some sectors and companies will get slightly affected, but still India should be able to clock 7-8% growth rate, which is not bad on a high base.
So, one can build a case for a rebound. Having said that, markets these days are driven much more by sentiment. Despite India's strong fundamentals, it will take a Herculean effort to lift the main indices to their previous lifetime highs. What is needed for that is sustained buying from all sections, good corporate earnings growth, political stability and consistency in policy making. Hopefully, we will have all of that and the market will gradually see some sanity shortly. The biggest issue remains lack of liquidity across global markets. Money has suddenly become a scare commodity. At the same time, those who have it are not ready to part with it.
Asian markets are trading mixed and a bit volatile this morning. The Nikkei was up 172 points or 1.5% at 11,959 while the Hang Seng in Hong Kong was down 137 points or 0.65% at 20,947.
The Kospi in Seoul added 3 points to 1577 while the Straits Times was more or less flat at 2786. The Shanghai Composite in China was down 1% at 3783 and the Taiex in Taiwan gave up 0.35% to 7977.
The MSCI Asia Pacific Index gained 0.8% to 133.30 as of 11:13 a.m. in Tokyo. The benchmark is still down 16% this year. An index of financial stocks increased the most today among the index's 10 industry groups.
US blue chip shares staged a smart rebound on Monday despite the Fed cutting the discount rate in a rare emergency weekend meeting and JP Morgan Chase agreed to acquire Bear Stearns for a song.
Bond prices surged, lowering corresponding yields, as investors sought the comparative safety of government debt. The dollar plumbed to a 13-year low versus the yen and hit another all-time low versus the euro.
The Dow Jones Industrial Average recovered from a drop of 194 points to finish higher, led by JP Morgan's biggest gain in almost two months. The S &P 500 Index dropped for a second day, sliding to within 2% of a bear market, as Lehman Brothers and Morgan Stanley tumbled.
The declines followed a selloff across Europe and Asia that pushed the Dow Jones Stoxx 600 Index to its lowest level since 2005 and the MSCI Asia Pacific Index to a third-straight drop.
The S&P 500 lost 11.54 points, or 0.9%, to 1,276.6 after falling as much as 2.4%. The Dow, which swung between gains and losses at least 27 times, advanced 21.16 points, or 0.2%, to 11,972.25. The Nasdaq Composite slid 35.48 points, or 1.6%, to 2,177.01.
The Dow and S&P 500 closed at all-time records on Oct. 9. Since then, the Dow has erased 15.5% and the S&P 500 has lost 18.4%. The Nasdaq is down nearly 24% since hitting its recent high on Oct. 31, which was not an all-time record.
Market breadth was negative. Almost four stocks fell for every one that rose on the New York Stock Exchange.
Eight of 10 industry groups in the S&P 500 dropped as the benchmark for US equities extended its decline from an Oct. 9 record to more than 18%. Energy shares lost 2.5% as a group after oil fell more than $4 a barrel on concern that the US economy has slipped into a recession.
Bear Stearns plunged or 84% to $4.81 after JP Morgan agreed to buy the securities firm for $240mn, or about $2 a share. The Fed is providing financial backing to JPMorgan for the deal. JPMorgan gained 10% to $40.31.
Lehman Brothers, the fourth-largest US securities firm, dropped 19% to $31.75. Goldman Sachs, the world's largest securities firm, dropped 3.7% to $151.02. UBS downgraded shares of Goldman and Lehman to neutral from buy, saying the liquidity squeeze will get worse before it gets better.
Morgan Stanley retreated 8% to $36.38. Merrill Lynch, the third-largest securities firm, dropped 5.4% to $41.18. Citigroup, the biggest US bank, declined 5.9% to $18.62.
The Federal Reserve is expected to cut the fed funds rate, a key overnight consumer lending rate, by a full percentage point when it meets on Tuesday. The fed funds rate currently stands at 3%.
On Sunday, the Fed cut the discount rate, a short-term bank lending rate, to 3.25% from 3.5%, in a bid to make more cash available to strapped banks. Still, some market watchers feel additional rate cuts won't be enough to calm markets.
US light crude oil for April delivery fell $4.53 to settle at $105.68 a barrel in New York after touching an all-time high of $111.80 in electronic trading. COMEX gold for April delivery added $7 to settle at $1,006.50 an ounce after hitting an all-time high of $1,033.90 an ounce earlier.
Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.30% from 3.44% late on Friday. In currency trading, the dollar fell to a fresh all-time low versus the euro and again touched a more than 12-year low against the yen.
European shares fell sharply. The pan-European Dow Jones Stoxx 600 index fell 4.6% to 290.26, a level not seen since November 2005. UBS shares took a beating, down 12%, amid worries about the prospects for more asset write-downs after the Bear Stearns fire sale.
The UK's FTSE 100 fell 3.9% to 5,414.40, while the German DAX 30 dropped 4.2% to 6,182.30, and the French CAC-40 fell 3.5% to 4,431.04.
In the emerging markets, the Bovespa in Brazil was down 3.2% at 60,011 while the IPC index in Mexico fell 2.2% to 29,048. The RTS index in Russia tumbled 3.6% to 1990 and the ISE National 30 index in Turkey plummeted 7.4% to 49,107.
Pain may continue
The bulls which managed to close with positive gains on Friday, were unable to carry the momentum as Monday turned out to be a manic one for traders and investors on Dalal Street. Bears were back with vengeance as it ripped off the wind out of stocks cutting across sectors and dragged the benchmark Sensex to close below 15k mark.
The benchmark Sensex posted its second biggest single day point fall ion Monday after global markets sunk further following the Fed cutting its discount rate just two days ahead of its scheduled meeting. The Fed cut discount rate by 25 basis points to 3.25%.
Finally, the BSE benchmark Sensex plunged 951 points ending at 14,809 and the Nifty index lost 242 points ending at 4,503.
Overall about 283 stocks advanced; 2,403 stocks declined while 30 stocks remained unchanged.
Even the broader markets witnessed heavy selling as both the Mid-Cap and Small-Cap indices fell over 6% each. The advance:decline ratio was at 1:17.
Shares of Orchid Chemical fell by over 38% on NSE after heavy selling pressure was seen in the scrip. The scrip touched an intra-day high of Rs204 and a low of Rs120 and recorded volumes of over 1,00,00,000 shares on NSE.
Tanla Solutions was down by over 7.5% to Rs506. The company said that it would split each stock into two. The scrip touched an intra-day high of Rs549 and a low of Rs487 and recorded volumes of over 70,000 shares on NSE.
Pratibha Industries declined by over 3% to Rs299. The company announced that it would absorb units Pratibha Shareholdings, One Metro India. The scrip touched an intra-day high of Rs303 and a low of Rs281 and recorded volumes of over 11,000 shares on NSE.
Rcom slipped 7% to Rs481. The company has said that they have added 1.61mn users in February. The scrip touched an intra-day high of Rs505 and a low of Rs476 and recorded volumes of over 52,00,000 shares on NSE.
Tata Motors slipped by 4.4% to Rs609. According to reports the company is close to convincing Ford to supply Jaguar and Land Rover engines at a pre-agreed price under a long term contract. The scrip touched an intra-day high of Rs629 and a low of Rs597 and recorded volumes of over 7,00,000 shares on NSE.
Cummins India was down by over 13% to Rs273. The company said that it has signed a Memorandum of Understanding (MOU) with the Government of Maharashtra wherein the state government has offered "Mega Project" incentives to the company for its proposed expansion at Phaltan MIDC (Village Survadi, District Satara). The scrip touched an intra-day high of s309 and a low of Rs263 and recorded volumes of over 44,000 shares on NSE.
Sun TV was down by 3.4% to Rs291. The company announced that it launched FM station at Allahabad & Jabalpur. The scrip touched an intra-day high of Rs294 and a low of Rs280 and recorded volumes of over 2,00,000 shares on NSE.
Infotech Enterprises was down by 5% to Rs219. The company announced that it signed a new multi-year contract with digital map leader Tele Atlas to provide extensive map database and software development services. The scrip touched an intra-day high of Rs228 and a low of Rs215 and recorded volumes of over 3,000 shares on NSE.
Given the global scenario and sentiments, for tomorrow markets may continue to be under pressure. So it would be advisable to be on the side lines.
Corporate Front Page
ICICI Bank and ICICI Lombard have come under the scanner of fair trade practices body MRTPC for imposing “unfair and unjust” conditions on the insurance cover provided to the credit card customers. (BS)
Tata Steel may raise ~Rs40bn through an issue of non-fungible GDRs. (ET)
JSW Steel Group has signed a $2bn deal with a Japanese shipping firm for transportation of coal over ten years. (BS)
JSW Steel inaugurated a 1mn ton capacity cold rolling mill complex at its Vijayanagar works. (BL)
Expert Committee on Infrastructure development and Miscellaneous Projects has granted the Coastal Regulation Zone clearance to Reliance Power’s its 4,000 MW Krishnapatnam ultra mega power project in Andhra Pradesh. (FE)
China Light and Power Holdings has emerged the lowest bidder for setting up the 1,326 mw power generation project at Jhajjar in Haryana, ahead of Lanco Infratech. (BS)
BPCL has been slapped a penalty of Rs330mn by the income tax department (Mumbai) for non-payment of proper advance taxes for 2006-07. (BS)
Tata BP Solar, a venture of Tata Power and BP Solar have signed an agreement with Calyon Bank, BNP Paribas and others to raise US$78mn for expansion. (ET)
Godrej Industries has received shareholders approval for further investing up to Rs3.6bn in Godrej Consumer Products. (BS)
Dubai-based Emaar Properties is planning to launch private residences designed by Giorgio Armani. (BS)
Future Group is picking up a 70% stake in Aadhaar, Godrej Group’s rural retailing initiative. (ET)
ACC, Ambuja Cement and Lafarge are looking at buying the closed manufacturing facilities of Cement Corporation of India. (ET)
With the Ministry of Civil Aviation not indicating a fresh date for shifting of operations the new Rajiv Gandhi International Airport, the GMR Hyderabad International Airport is set to incur significant losses. (BL)
Delhi-based Selan Exploration Technology has roped in Malaysia-based Kejuruteraan Samudra Timur (KSTB) to provide land drilling rig services in Ahmedabad, Gandhinagar and Mehsana districts in Gujarat. (BS)
Union Bank of India has readied a reverse mortgage loan product, which will be launched in couple of weeks. (BL)
The Chhattisgarh government has denied that it has ever signed any pact with NTPC to draw water from the state’s resources for its 2,980-Mw Sipat power project in Bilaspur district. (BS)
In a strongly-worded letter, the CPI (M) has sought Prime Minister Manmohan Singh’s urgent intervention to shore up BSNL’s mobile capacity. (BS)
High coffee bean prices have affected the profit margins of Hindustan Unilever’s (HUL) beverage segment. (BS)
The steel ministry is considering withdrawal of SAIL and Rashtriya Ispat Nigam from the JV with NMDC for setting up a 4mn ton steel plant in Chhattisgarh. (ET)
Russian conglomerate, Sistema plans to invest as much as US$5bn in India over the next three years. (FE)
DHL Express plans to open 1,000 retail points across the country by 2010 up from current 150 centers. (Mint)
Signet Solar Inc, manufacturers of silicon thin film photovoltaic (PV) modules, will set up its first manufacturing plant at Sriperumbudur at an investment of Rs20bn and has signed an MoU with the Tamil Nadu government. (ET)
West Bengal Govt. plans to set up Rs4bn retail chain. (Mint)
Economic Front Page
Private equity and overseas venture capital investments in Indian Companies could soon be included in FDI caps for each sector. (FE)
After RBI, it is now the income tax authorities who have put banks and companies disclosing losses in their foreign exchange derivative structures under the scanner. (BS)
Non-food credit offtake in the fortnight ended February 29, 2008, has risen up by Rs400bn to Rs22,069bn, as against Rs7.9bn in the previous fortnight. (BS)
IIP’s Feb data may show manufacturing slump in February, as the output increase rate and new orders have been weakest in the last six months. (BS)
The number of POIs (points of interconnection) with congestion has fallen to 315 during the three-month period ended December 2007, compared with 348 registered during the same period ended September 2007. (BS)
The government has said that the country will have electricity on demand by 2012 and it needs nuclear energy to meet future demand. (BS)
The country’s power shortage rose to its highest level at 12.8% in January 2008 as compared to 12.51% in January 2007. (BS)
The scope of the Rs600bn farm loan waiver package will be extended and dry-land farmers having more than five acres will also be able to benefit from the scheme. (BS)
The Congress government in Andhra Pradesh today announced loan waiver for weaker sections, physically challenged persons, minorities and women, amounting to Rs16.9bn and covering about 4.38mn beneficiaries. (BS)
In a relief to direct-to-home (DTH) operators facing exorbitant pricing of channels from the broadcasters, the Punjab and Haryana High Court has directed the sector regulator Trai to decide on the pricing issue within eight weeks. (BS)
According to the Solvent Extractors Association of India (SEA), edible oil imports increased to 0.43mn tons against 0.15mn tons during the same period a year ago. (BL)
The Andhra Pradesh Cabinet on Monday approved the lowering of sales tax from 33% to 4% on ATF. (BL)
Telecom Regulatory body TRAI will impose a fine of up to Rs20,000 on service providers for non-compliance of its directive regarding unsolicited tele-marketing calls and messages. (ET)
China has authorized coal exports of 31.8mn tons in 2008. (Mint)
Morning Call - March 18 2008
Market Grape Wine :
In House :
Nifty at a support of 4450 and 4372 with resis at 4610 and 4725
Cash: Buy Lanco above 369 with a TGT of 385 and a SL of 353
Buy GMRINFRA above 133 with a TGT of 140 and a SL of 124
F&O: Sell REL below 1165 with a TGT of 1110 and a SL of 1187
Sell UNITECH with a TGT of 242 with SL.
Out House :
Markets at a support of 14678 & 14786 and resistance at 15151 & 15351 levels .
Buy : Ongc at dips
Buy : RIL at dips
Buy : HLL & ITC
Buy : LT at dips
Buy : Nalco & MTNL at dips
Dark Horse : ONGC , Kohinoor , RIL , LT , ITC & HLL
Grey Market - Gammon, Titagarh, Kiri Dyes
Gammon Infra 167 to 200 3 to 5
Sita Shree Food Pro. 27 to 30 2 to 4
Titagarh Wagons Ltd. 540 to 610 25 to 30
Kiri Dyes & Chemicals 125 to 150 8 to 12
Gold backs off new highs
Gold touches a new high of $1034 during intra day trading
Precious metals created another new record on Monday, 17 March, 2008 after gold touched the $1034/ounce mark for the first ever time in history. Traders started selling off the precious metals to cover their losses in other market, mainly equity market. But at the end, gold pared most of its gains for the day and ended $3 higher. Silver prices fell substantially today.
Comex Gold for April delivery rose $3.1 (0.3%) to close at $1,002.6 ounce on the New York Mercantile Exchange, marking the first time the price has closed above $1,000. Earlier in the day, prices touched a high of $1033.8/ounce but then the metal gave up some of its gains later in the session. This year, gold prices have gained 19.5% till date. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%.
Stocks plunged worldwide yesterday after Bear Stearns accepted a buyout from JPMorgan Chase to avoid collapse. Last weekend, acting to prevent a run on major global financial firms, the Fed took the extraordinary steps of cutting the U.S. discount rate by a quarter of a point, to 3.25%, and offering to lend money to a longer list of firms than ever before. Gold reached the record in overnight trading after JPMorgan agreed to buy Bear Stearns for $2 a share, striking a deal backed by the Federal Reserve. Last week, gold prices gained $25.3 (2.6%).
Comex Silver futures for May delivery fell 35.5 cents (1.7%) to $20.30 an ounce. Silver has gained 32.5% in 2008. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years. In January this year itself, prices climbed 14%. In February, it gained another 15%.
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. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment.
In the energy market on Friday, crude oil fell by more than $4 today and closed a little above $105/barrel.
The dollar has been dampened since last year, more since start of FY 2008 after interest rates were cut twice in January, 2008. 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 cut the federal funds rate to 3% this year from 5.25% in mid-September, 2007. January 2008 itself saw two rate cuts in a gap of ten days.
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%.
At the MCX, gold prices for April delivery closed higher by Rs 30 (0.2%) at Rs 13,065 per 10 grams. Prices rose to a high of Rs 13,397 per 10 grams and fell to a low of Rs 13,030 per 10 grams during the day’s trading.
At the MCX, silver prices for May delivery closed Rs 716 (2.7%) lower at Rs 26,032/Kg. Prices opened at Rs 26,800/kg and fell to a low of Rs 25,867/Kg during the day’s trading.
Crude registers sharp fall
Price witnesses largest single day decline in almost seventeen years
Crude prices fell by more than $4 today, Monday, 17 March, 2008. Prices fell after the dollar continued to remain under pressure today after economic concerns about an ongoing recession continued to haunt the US Market. It was the biggest daily loss for crude in 17 years.
Crude-oil futures for light sweet crude for April delivery today closed at $105.68/barrel (lower by $4.5/barrel or 4.1%) on the New York Mercantile Exchange. They earlier surged to $111.8 a barrel earlier in the day, the highest since trading began in 1983. Prices rose as much as $1.59 and dropped as much as $6.98 today.
Crude prices, denominated in dollars, tend to rise when the greenback falls, as a weaker U.S. currency makes crude less expensive to buyers holding other currencies. It also lowers oil producers' dollar revenue and forces them to raise prices.
In its first weekend emergency action in almost three decades, the Federal Reserve lowered the so-called discount rate by a quarter of a percentage point to 3.25%. The U.S. consumes almost 25% of global oil production.
In the currency market today, the falling dollar boosted commodity prices until today as investors looked for an inflation hedge. The dollar sank to a record low against the euro and the Swiss franc fell to the weakest in 12 years against the yen, helping push gold and crude oil to highs.
Brent crude oil for April settlement today fell $4.45 (4.2%) to $101.75 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 tumbles more than 7%
Natural gas futures fell more than 7%, the biggest drop since August, amid declining crude- oil prices and forecasts for mild weather that will cut demand for the heating fuel. Natural gas for April delivery fell 76.8 cents (7.8%) to settle at $9.10 per million British thermal units.
Against this backdrop, April reformulated gasoline fell 18.9 cents to $2.5 a gallon, and April heating oil dropped 7.81 cents to $3.0684 a gallon.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.
The International Energy Agency, cut its forecast for 2008 global oil demand for a second month as record prices curbed consumption in some parts of the world. The agency reduced its forecast by 80,000 barrels a day to 87.54 million barrels a day, leaving annual demand growth at 2%.
OPEC left production targets unchanged on its 5 March meeting at Vienna, giving 12 of its 13 members a combined quota of 29.67 million barrels a day.
At the MCX, crude oil for March delivery closed at Rs 4,173/barrel, lower by Rs 206(4.7%) against previous day’s close. Natural gas for March delivery closed at Rs 376/mmtbu, lower by Rs 24.5/mmtbu (6.5%).
RIL, DLF, SBI March 2008 futures at discount
Turnover in F&O segment declines
Nifty March 2008 futures were at 4477, at a discount of 26.10 points as compared to spot closing of 4503.10.
The NSE's futures & options (F&O) segment turnover was Rs 40,058.11 crore, which was lower than Rs 40,184.57 crore on Friday, 14 March 2008.
Reliance Industries (RIL) March 2008 futures were at discount at 2172 compared to the spot closing of 2180.20.
DLF March 2008 futures were at discount at 582 compared to the spot closing of 607.85.
State Bank of India (SBI) March 2008 futures were at discount at 1625.05 compared to the spot closing of 1636.30.
In the cash market, the S&P CNX Nifty lost 242.7 points or 5.11% at 4503.10.
Biggies wealth eroded
It was not long back that many Indian promoters figured in the global billionaire list. The Sensex’s rise last year saw the likes of DLF’s KP Singh coming out of nowhere and becoming the third richest Indian for a while. And there was much speculation as to when, rather than if, Mukesh and Anil Ambani would eclipse Bill Gates.
However, the recent stock market turmoil has resulted in an erosion of net worth of India’s wealthy lot, which is just as spectacular as the rise was. In all, the net worth of India’s top 10 promoters is down by 35% since the peak in early January.
Indian biggies including Mukesh Ambani, Anil Ambani, DLF’s Singh, Tatas and Sunil Mittal of Bharti Airtel have seen their combined net worth shrink by around $100 billion in the last two months.
Topping the list of losers is India’s biggest real estate baron KP Singh. His net worth has nearly halved to $22.5 billion from a peak of $45 billion in January.
Next in line is Anil Ambani. His personal wealth, as denoted by his holdings in group companies, has declined by over $21 billion, or 46%, to around $25 billion. Big Brother Mukesh Ambani has done relatively better with his net worth falling to $41 billion from a peak of $58 billion.
Another real estate baron to lose heavily during this meltdown is Ramesh Chandra of Unitech, whose market cap has halved since this bear phase began. The Hinduja Group too has taken a knock with the market value of its holdings down by nearly 43%.
The promoters who have seen maximum wealth erosion are those with business interests in real estate, power and energy. These sectors, which were the darlings of the markets all of last year, are suddenly seen as untouchables.
In order to calculate a promoter’s net worth, we have excluded the cross-holding among group companies. For instance, to calculate Mukesh Ambani’s net worth, we have excluded the value of RIL’s stake in Reliance Petroleum.
Via ET
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