Eveninger - Apr 2 2008
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Wednesday, April 02, 2008
NSE Bulk Deal Watch - Apr 2 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
2-Apr-08,GSSAMERICA,GSS America Infotech Limi,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,144124,701.79,-
2-Apr-08,GSSAMERICA,GSS America Infotech Limi,BALASO VITTHAL SHINDE,BUY,121523,773,-
2-Apr-08,GSSAMERICA,GSS America Infotech Limi,GOPAL TRADERS,BUY,258607,709.12,-
2-Apr-08,GSSAMERICA,GSS America Infotech Limi,MAHESHBHAI M0HANLAL PATEL,BUY,100000,730,-
2-Apr-08,GSSAMERICA,GSS America Infotech Limi,NISSAR BROTHERS,BUY,73020,701.37,-
2-Apr-08,GSSAMERICA,GSS America Infotech Limi,R.M. SHARE TRADING PVT LTD,BUY,105109,728.8,-
2-Apr-08,HINDDORROL,Hindustan Dorr-Oliver Ltd,M M MURARKA SHARE & SEC PVT LT,BUY,187000,99.75,-
2-Apr-08,IBSEC,Indiabulls Securities Lim,MORGAN STANLEY DEAN WITTER MAURITIUS CO. LTD,BUY,130374,103.68,-
2-Apr-08,ORIENTABRA,Orient Abrasives Limited,BHAWANA RAJGARHIA,BUY,600000,21.5,-
2-Apr-08,ORIENTABRA,Orient Abrasives Limited,USHA RAJGARHIA,BUY,400000,21.5,-
2-Apr-08,SELMCL,SEL Manufacturing Company,DKG SECURITIES PVT LTD,BUY,71671,345.93,-
2-Apr-08,XLTL,XL Telecom Limited,KMRINDUSTRIESLIMITED,BUY,35525,205.97,-
2-Apr-08,GSSAMERICA,GSS America Infotech Limi,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,146003,704.13,-
2-Apr-08,GSSAMERICA,GSS America Infotech Limi,BALASO VITTHAL SHINDE,SELL,123523,767.23,-
2-Apr-08,GSSAMERICA,GSS America Infotech Limi,GOPAL TRADERS,SELL,258607,712.48,-
2-Apr-08,GSSAMERICA,GSS America Infotech Limi,MAHESHBHAI M0HANLAL PATEL,SELL,100000,765,-
2-Apr-08,GSSAMERICA,GSS America Infotech Limi,NISSAR BROTHERS,SELL,73020,702.38,-
2-Apr-08,GSSAMERICA,GSS America Infotech Limi,PACIFIC CORPORATE SERVICES LTD,SELL,300000,700.23,-
2-Apr-08,GSSAMERICA,GSS America Infotech Limi,R.M. SHARE TRADING PVT LTD,SELL,105109,730.64,-
2-Apr-08,GSSAMERICA,GSS America Infotech Limi,ULTRA INDIA (MAURITIUS) LIMITED,SELL,150000,630.05,-
2-Apr-08,HINDDORROL,Hindustan Dorr-Oliver Ltd,BATLIVALA & KARANI FIN CONSULT,SELL,187000,99.75,-
2-Apr-08,IBSEC,Indiabulls Securities Lim,MIRAE ASSET INDIA DISCOVERY EQUITY INVESTMENT TRUST 1,SELL,1959971,108.82,-
2-Apr-08,IBSEC,Indiabulls Securities Lim,MORGAN STANLEY DEAN WITTER MAURITIUS CO. LTD,SELL,2105019,123.02,-
2-Apr-08,MTNL,Maha Tel Nigam Ltd.,MORGAN STANLEY DEAN WITTER MAURITIUS CO. LTD,SELL,1910000,100.96,-
2-Apr-08,ORIENTABRA,Orient Abrasives Limited,MADHUSHREE PROPERTIES PRIVATE LTD,SELL,1200000,21.5,-
2-Apr-08,SELMCL,SEL Manufacturing Company,DKG SECURITIES PVT LTD,SELL,82988,347.45,-
2-Apr-08,XLTL,XL Telecom Limited,KMRINDUSTRIESLIMITED,SELL,131400,200.61,-
2-Apr-08,SAKSOFT,SAKSOFT LIMITED,WF INDIA RECONNAISSANCE FUND LIMITED,SELL,51200,86.82,-
BSE Bulk Deals to Watch - Apr 2 2008
Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
2/4/2008 590059 BIHAR TUBES JAGAN INDUSTRIES LTD S 45000 141.22
2/4/2008 512332 BIRLA CAP AYODHYAPATI INVESTMENT PVT LTD S 90000 6.58
2/4/2008 532271 CYBERMAT INF SARFARAZKHAN SARVARKHAN PATHAN B 593086 6.03
2/4/2008 532271 CYBERMAT INF SARFARAZKHAN SARVARKHAN PATHAN S 593086 6.02
2/4/2008 517973 DMC INTER HITECH COMPUTECH PRIVATE LTD S 46466 13.50
2/4/2008 512519 DONEAR INDUS LOTUS GLOBAL INVESTMENTS LIMITED B 299125 65.00
2/4/2008 532951 GSS AMERICA MAHESHBHAI MOHANLAL PATEL B 100000 730.00
2/4/2008 532951 GSS AMERICA ASTUTE COMMODITIES AND DERIVATIVES PVT LTD B 72619 715.00
2/4/2008 532951 GSS AMERICA PACIFIC CORPORATE SERVICES LTD S 290141 689.40
2/4/2008 532951 GSS AMERICA MAHESHBHAI MOHANLAL PATEL S 100000 765.00
2/4/2008 532951 GSS AMERICA INDIA DIVERSIFIED MAU LIMITED S 150000 630.14
2/4/2008 532951 GSS AMERICA ASTUTE COMMODITIES AND DERIVATIVES PVT LTD S 72611 715.10
2/4/2008 516078 JUMBO BAG LT DINESH RATHOD HUF B 50235 43.41
2/4/2008 531687 KARUT NET L RHEA HOLDINGS PVT LTD B 300000 190.00
2/4/2008 531687 KARUT NET L LB INDIA HOLDINGS MAURITIUS II LTD FCCB S 300000 190.00
2/4/2008 532283 KASHYAP TEC OM EDUCATION IT PVT LTD B 4016287 2.00
2/4/2008 532283 KASHYAP TEC OM EDUCATION IT PVT LTD S 3274375 2.02
2/4/2008 531366 KOHINOOR BRO SARFARAZKHAN SARVARKHAN PATHAN B 650489 7.01
2/4/2008 531366 KOHINOOR BRO SARFARAZKHAN SARVARKHAN PATHAN S 650489 7.03
2/4/2008 505523 MAH IND LEAS SHAH SAMIR D B 95429 16.70
2/4/2008 505523 MAH IND LEAS ALLIANCE INTERMEDIATERIES AND NETWORK P LTD S 95429 16.70
2/4/2008 512267 MEDIA MATRIX COMMITTED TRADING PVT LTD B 600000 5.96
2/4/2008 532723 MONET SUGAR UMRA SECURITIES LTD B 89193 21.82
2/4/2008 532723 MONET SUGAR TRUSTWELL HOLDINGS LIMITED S 46344 21.72
2/4/2008 532895 NAGREEKA CAP USHA DEVI SARAOGI B 200000 62.00
2/4/2008 532895 NAGREEKA CAP PUSHPA DEVI SARAOGI B 157500 62.00
2/4/2008 532895 NAGREEKA CAP MERIDIAN INVESTMENTS S 357500 62.00
2/4/2008 526415 OK PLAY INDI RAJENDRA KUMAR JAIN S 35000 57.50
2/4/2008 530253 RAJAS TUBE M APL INFRASTRUCTURE PRIVATE LIM B 100000 11.50
2/4/2008 532669 SOUTHBIOTEC VINCENT COMMERCIAL COMPANY LTD B 170000 20.15
2/4/2008 532669 SOUTHBIOTEC VATICAN COMMERCIALS LTD S 170000 20.15
Post Market Commentary - Apr 2 2008
The Indian market gave up most of its early gains after a strong start to the trading session. The market opened on a firm note tracking the strong favoring cues from the global markets and all of a sudden kept on drifting down further from there on as the profit booking prevailed. However, the strong global cues like Lehman Brothers raising of $4billion in an offering of convertible preferred shares eased fears of heading for a fate similar to that of Bear Stearns, fell to kept the market at the higher levels and gave up most of its gains. The Sensex spurts more than 600 points at the initial stage to touch an intraday high of 16,236.70 and low of 15,719.47. The investors took calculated steps to book their positions.
The BSE Sensex closed higher by 123.78 points at 15,750.40 and NSE Nifty closed up by 14.65 points at 4,754.20. The BSE Mid Caps and Small Caps closed up by 17.87 points and 50.38 points at 6,412.97 and 7,912.14 respectively.
The market breadth was strong as 1764 stocks closed in green as against 909 stocks that closed in red.
The Metal index dropped by 296.87 points to close at 13,516.89. Major losers are JSW Steel (4.40%), SAIL (3.90%), Ispat Inds (3.28%), Tata Steel (3.21%), Sterlite inds (2.15%), Nalco (2.14%), Sesa Goa (2.14%) and Jindal Steel (1.93%).
The Bankex index grew by 179.01 points to close at 7,822.56. Major gainers are BOI (6.60%), Canara bank (5.62%), ICICI bank (3.65%), Axis bank (3.04%), IOB (2.54%), SBI (1.73%) and CentBOP (1.75%).
The IT index closed higher by 103.76 points at 3,644.35 as Mosear Baer (4.42%), Infosys (4.26%), Rolta India (4.03%), Satyam (2.48%), Finance Technologies (2.34%), TCS (1.92%) and Wipro (1.32%) closed in green.
The Oil and Gas index closed lower by 25.64 points at 10,328.08. Losers are Cairn India (3.02%), BPCL (1.83%), Aban Offshore (1.73%), Essar Oil (1.73%), RNRL (1.58%) and RPL (1.14%).
From the FMCG space, Galxosmithkline Cons (2.99%), Marico (1.89%), Dabur (1.59%), ITC (1.44%) and HUL (1.15%) closed in red.
The Capital Goods index fell by 61.78 points to close at 13,498.15 as Thermax (1.99%), Elecon Eng (1.34%), Havell India (1.24%), Bharat Electronics (1.04%), L&T (1.01%) and ABB (0.39%) closed in negative.
The BSE Realty index closed up by 34.69 points at 7,501.17 as Akruti City (19.60%), Purvankara (5.06%), Indbul Real (3.17%), HDIL (2.07%), Anant Raj (2.06%) closed in green.
Profit taking trims Sensex gains
Even as major Asian indices like Nikkei, Hang Seng, Straits Times and Kospi managed to clock 2-4% gains, the Sensex failed to hold on to its early rally and closed way off its highs amid profit taking towards the closing hours. Riding on the back of yesterday's buoyant close and optimism in several international markets, the Sensex resumed 397 points higher at 16,023 and advanced sharply on sustained buying support to move above 16,200 and touch an intra-day high of 16,237. After remaining above 16,000 for the entire first half, the Sensex came under the grip of profit taking and slipped below 15,750 to touch the day's low of 15,719, 92 points above the last close of 15,627. The index finally ended the session with gains of 124 points at 15,750, while the Nifty gained 15 points to close at 4,754.
Among the front liners, HDFC soared 4.68% at Rs2,470, Infosys rose 4.26% at Rs1,482, ICICI Bank added 3.65% at Rs784, Jaiprakash Associates jumped 3.08% at Rs232.20, Satyam Computers advanced 2.48% at Rs407.25, Mahindra & Mahindra gained 2.45% at Rs666.25 and Bharti Airtel soared 2.41% at Rs824.05. However, Reliance Energy dropped 4.51% at Rs1,230 while Tata Steel declined 3.21% at Rs645.95 and BHEL lost 2.08% at Rs1,852.
The breadth of the market was positive. Of the 2,720 stocks traded on the Bombay Stock Exchange (BSE), 1,763 stocks advanced, 910 stocks declined and 47 stocks ended unchanged. On the sectoral front, 7 out of 13 sectoral indices ended in positive territory. The BSE IT was the lead performer and rose 2.93% at 3,644.35, while the BSE Bankex and Teck index gained 2% each.
IT stocks continued to witness strong buying support. Moser Bear shot up by 4.42% at Rs159.45, Infosys scaled up 4.26% at Rs1,481.95, Rolta India added 4.03% at Rs266, Satyam gained 2.48% at Rs407.25 and Financial Technology scaled up 2.34% at Rs1,640. TCS, I-Flex and HCL Technology ended in positive territory.
Over 1.49 crore IB Securities shares changed hands on the BSE followed by RPL (1.22 crore shares), Kashyap (1.10 crore shares), RNRL (1.02 crore shares) and Essar Oil (0.95 crore shares).
Market fails to sustain higher level as heavyweights give up early gains
An early surge on the bourses proved short-lived as index heavyweights Reliance Industries, ICICI Bank and L&T, gave up initial gains. The Sensex, which had surged past 16,000 mark in early trade, fell below that level later. Nevertheless, the market breadth remained strong. 16 shares advanced from the 30-member Sensex pack.
Sensex settled 123.78 points or 0.79% higher at 15,750.40. Sensex gained 92.85 points at day’s low of 15,719.47 hit in late trade. Sensex opened with an upward gap of 396.68 points at 16,023.30 and advanced further to hit a high of 16,236.70 in early trade. At the day’s high, the Sensex rose 610.08 points. It oscillated in a band of 517.30 points in volatile trade
The broader based S&P CNX Nifty was up 14.65 points or 0.31% at 4,754.20. Nifty April 2008 futures were at 4741.15, a discount of 13.05 points as compared to spot closing.
Strong cues from global markets had boosted domestic bourses earlier in the day. US stocks rallied on Tuesday, 1 April 2008, after Lehman Brothers said it raised $4 billion in an offering of convertible preferred shares, which soothed fears it was heading for a fate similar to that of Bear Stearns. European markets, which opened after Indian market, were in green. Asian markets, which opened before Indian market Indian market, surged.
The market breadth was strong on BSE: 1734 shares advanced as compared to 938 that declined. 50 shares remained unchanged.
The BSE Mid-Cap index rose 0.08% to 6,400.37 and the BSE Small-Cap index advanced 0.51% to 7,901.91, as per provisional closing. Both these indices underperformed the Sensex.
The total turnover amounted to Rs 4769 crore on BSE as compared to Rs 4,718 crore yesterday, 1 April 2008
Total turnover in NSE’s futures options segment amounted to Rs 34170.35 crore as compared to Rs 35886.84 crore yesterday, 1 April 2008
The BSE Consumer Durables index (up 0.80% to 3,917.70), the BSE IT index (up 2.93% to 3,644.35), the BSE Auto (up 1.56% at 4,539.52), the BSE Bankex (up 2.34% at 7,822.56), the BSE Health Care index (up 0.82% at 3,862.83), the BSE TecK index (up 2.04% to 3,078.22), outperformed the Sensex
The BSE Metal index (down 2.15% to 13,516.89), the BSE FMCG index (down 0.79% at 2,318.80), the BSE Oil & Gas index (down 0.25% to 10,328.08), the BSE Realty index (up 0.46% at 7,501.17), the BSE Power (down 0.49% to 3,137.12), the BSE Capital Goods index (down 0.46% at 13,498.15), and the BSE PSU index (down 0.11% to 7,387.62), underperformed the Sensex
IT pivotals advanced on fresh buying. India’s second largest software services exporter Infosys Technologies surged 4.34% to Rs 1483 on 1.66 lakh shares. It was the top gainer from Sensex pack.
Other IT pivotals, Wipro (up 1.10% to Rs 413.50), Satyam Computer Services (up 1.91% to Rs 405), and TCS (up 2.06% to Rs 852), advanced.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries eased sharply from day’s high of Rs 2455. It settled 0.22% lower at Rs 2340 on 13.27 lakh shares. The company said on Tuesday, 1 April 2008, it had discovered more gas in an exploration block off the east coast. The potential commercial interest of the discovery is being ascertained through more data gathering and analysis, the company said in a statement.
Jaiprakash Associates (up 2.51% to Rs 231, off day’s high of Rs 240.95), HDFC (up 3.82% to Rs 2450, off day’s high of Rs 2524.70) and Bharti Airtel (up 1.32% to Rs 815.25, off day’s high of Rs 839), though up pared early gains.
Banking shares gained on fresh buying. India’s largest private sector bank in terms of net profit ICICI Bank advanced 3.93% to Rs 786.25. The stock came off session's high of Rs 815. The bank’s American Depository Receipt (ADR) jumped 8% yesterday, 1 April 2008, on the New York Stock Exchange (NYSE).
Other banking shares, State Bank of India (up 1.51% to Rs 1649), and HDFC Bank (up 0.45% to Rs 1314), also logged gains
India’s top tractor marker in terms of sales, Mahindra & Mahindra (M&M) rose 2.61% to Rs 667.25 after it said on Tuesday, 1 April 2008, its vehicle sales rose 20% to 24,682 units in March 2008 over March 2007. M&M’s sales rose 30% to 2,31,355 vehicles, in the financial year to March 2008 over the financial year to March 2007.
India’s top truck marker in terms of sales, Tata Motors rose 1.51% to Rs 636.90 after it said on Tuesday, its vehicle sales 6% to 66,495 units in March 2008 over March 2007. Sales of commercial vehicles rose 17% to 35,993 units and sales of cars and utility vehicles fell 4% to 24,737. Exports fell 9% to 5,765 vehicles
India’s largest private sector power utility company in terms of sales, Reliance Energy slumped 5.15% to Rs 1222 on 9.22 lakh shares. It was the top loser from Sensex pack.
Steel stocks declined on reports that the government has asked steel makers to cut prices by 10% to 20%, failing which it may take a host of fiscal measures to lower prices. Tata Steel, the country’s largest private sector in terms of sales, declined 3.50% to Rs 644
Other steel manufacturers JSW Steel (down 4.93% to Rs 785), Steel Authority of India (down 4.13% to Rs 167.30), and Jindal Steel & Power (down 2.36% to Rs 1965), declined. As per reports, the government has asked steel makers to cut prices by 10% to 20%, failing which it may take a host of fiscal measures to lower prices.
Bharat Heavy Electricals (down 2% to Rs 1854), and ITC (down 2.18% to Rs 206.55), edged lower from Sensex pack.
India's biggest engineering & construction firm by revenue L&T lost 1.1% to Rs 2861.25. The stock came off session's high of Rs 3069.90
GSS America Systems was the top traded counter on BSE with turnover of Rs 344.18 crore followed by Reliance Industries (Rs 318.62 crore), Reliance Capital (Rs 277.80 crore), Essar Oil (Rs 209.51 crore), and Reliance Petroleum (Rs 207.35 crore), in that order
Indiabulls Securities topped volumes chart clocking volumes of 1.50 crore shares followed by Reliance Petroleum (1.22 crore shares), Kashyap Technologies (1.10 crore shares), Reliance Natural Resources (1.02 crore shares) and Essar Oil (95.50 lakh shares), in that order.
Indiabulls Securities, which was spun off from Indiabulls Financial Services in January, settled at Rs 99.05 on BSE, as against base price of Rs 380, on its debut today. The stock hit a high and low of Rs 300 and Rs 96.20 respectively during the day. Indiabulls Financial Services, had allotted one share of Indiabulls Securities for every share held.
Among the side counters, Global Vectra Helicorp (up 19.97% to Rs 78.10), Classic Diamonds (up 20% to Rs 75.75), and Haldyn Glass Gujarat (up 20% to Rs 78.05), surged.
GSS America Systems (down 20% to Rs 623.10), Bosch Chasiss Systems (down 10% to Rs 559.75), ETC Networks (down 11.95% to Rs 261.95), and (down 9.94% to Rs 41.70), slipped
Cement shares gained on reports that they have raised prices in the range of 3% to 4% across the country. Ultratech Cement (up 5.53% to Rs 804), India Cements (up 2.05% to Rs 189.25), Birla Corporation (up 0.13% to Rs 198.50), ACC (up 0.89% to Rs 833.10) and Deccan Cement (up 1.61% to Rs 259) edged higher.
Prices were increased because of the rise in production cost. The cement price is now Rs 258 per 50 kilogram bag in Mumbai.
Steel Strips Wheels gained 3.62% to Rs 174.70 after the company said it has bagged an export order worth Rs 110 crore from Renault, France for supply of one million steel wheel rims over five years.
Gujarat Gas Company dipped 2.97% to Rs 227.30. The company said it has signed a contract for supply of 2.13 million cubic metres of gas per day with GAIL (India). The company made this announcement after trading hours on Tuesday, 1 April 2008.
BEML gained 1.45% to Rs 989 on achieving a provisional turnover of Rs 3005 crore with 15.5% growth and profit before tax of Rs 350 crore with 11% growth in the financial year 2007-08 over 2006-07. The company made this announcement before trading hours today, 2 April 2008. The order book of the company stands at Rs 3,795 crore.
GAIL India gained 2.56% to Rs 433.05 after the company said on Tuesday, 1 April 2008, it has signed contracts for marketing the entire volume of gas produced from the Panna-Mukta and Tapti fields.
Shree Cement declined 1.40% to Rs 1060. The company’s cement shipments jumped 60.08% to 7,54,000 tonnes in March 2008 over March 2007.
Kilburn Engineering advanced 6% to Rs 44.25 after the company said it has received an order worth Rs 11 crore from GHCL for manufacture of calciner.
The sharp rise in inflation has been a cause of concern, which has now risen above the Reserve Bank of India’s caution limit of 5%. India's wholesale price index surged to 13-month to 6.68% in the 12 months to 15 March 2008, surging from the previous week's rise of 5.92%, government data showed on Friday, 28 March 2008.
Finance minister P Chidambaram on 31 March 2008 announced a slew of measures, in an attempt to rein in commodity prices. The measures announced by Chidambaram include a total ban on non-basmati rice exports, a reduction in import duty on edible oils, allowing states to impose stock limits with traders, and also warning the steel lobby to hold the priceline, no matter the consequences.
The market sentiment may remain edgy in near term as Indian companies are sitting on huge potential losses on account of the forex derivative transactions they undertook last year. A steep decline in the value of the US dollar against the Japanese Yen and the Swiss Franc has hit Indian corporates which have used these two currencies (Yen and Franc) extensively to swap their rupee denominated debt.
European markets were trading higher mixed, 2 April 2008. Key benchmark indices Germany (up 0.38% to 6,746.36), and France (up 0.37% to 3,831.64), advanced. However United Kingdom’s FTSE 100 index slipped 0.07% to 5,848.60.
Asian markets settled higher today, 2 April 2008, led by banks and technology companies, on speculation financial companies will be able to overcome a freeze in credit markets and shore up global economic growth. Japan's Nikkei (up 4.21% at 13,189.36), Hang Seng (up 3.18% at 23,872.43), Taiwan's Taiwan Weighted (up 2.20% at 8,605.32), Singapore's Straits Times (up 2.56% at 3,344.39), Shanghai Composite (up 0.56% to 3,347.88), and South Korea's Seoul Composite (up 2.35% at 1,742.19), edged higher.
US markets rallied yesterday, 1 April 2008, after Lehman Brothers indicated that the bank can weather further credit losses. Better-than-expected reading on the manufacturing sector also fueled gains. The ISM reported that its purchasing manager’s index rose unexpectedly to 48.6 in March 2008 as compared to 48.3 in February 2008. The Dow Jones industrial average jumped 391 points to 12,654. The Nasdaq Composite index surged 84 points at 2,363 while the S&P 500 gained 47 points to 1,370.
Daily Trading Calls - Apr 2 2008
Nifty (4740) Supp 4700 Res 4850
Buy Lanco Infra (402) SL 397 Target 415, 420
Buy RIL (2345) SL 2325
Target 2385, 2400
Buy RPL (167) SL 163
Target 177, 180
Buy Bharti (803) SL 795
Target 818, 823
Sell Crompton (254) SL 259
Target 244, 240
Some help from the world!
When a person is down in the world, an ounce of help is better than a pound of preaching.
The local bulls seem to have got more than an ounce of help. A big rally on Wall Street and across most global markets is surely going to fire them up. Even the jobbers and arbitragers may not be able to resist the temptation, at least for the day. Though the key indices closed flat yesterday, volume came crashing down as the new STT regime kicked in. In a protest of sorts, jobbers and arbitragers stayed away from the market yesterday, pulling down volume substantially.
The combined cash market turnover of BSE and NSE dropped 23% to Rs157.18bn. Mumbai brokers met to discuss the ramifications of the withdrawal of Section 88E benefit on their business. Whether the agitation by jobbers and arbitragers coupled with the pressure tactics of the broker lobby leads to a rollback remains to be seen. Volume and turnover may remain subdued in the near term till there is more clarity on the STT issue.
Wall Street reacted to a raft of positive developments, including a stronger dollar, better-than-expected reports on manufacturing and construction, and signs that the hard-hit financial sector may be starting to turn the corner. Lehman Brothers' equity offering coupled with UBS' fresh capital raising plan raised hope that banks and brokerages are able to weather the turbulence in credit markets. As a result, US stocks surged, with the Dow Jones Industrial Average jumping close to 400 points on the first day of the new quarter.
All 30 components of the Dow ended higher, with shares of Citigroup leading the way, up 11.3%. All the three main stock indexes extended gains in the wake of US economic data that showed that the Institute for Supply Management's index inched up to 48.6% in March from 48.3% in February, topping the forecasts of a decline to 47%. Separately, the Commerce Department reported that US construction spending fell 0.3% in February, less than the 1% drop predicted by economists. Falling oil and gold prices also aided the equity markets advance. Whether the good times can continue will depend on quarterly earnings and economic reports, including Friday's March jobs report.
As far as the India is concerned, the worrying factor is the slowdown in the local economy due to high interest rates and of course the headline-grabbing inflation, which is at nearly a 14-month peak. The government has taken a series of steps, mostly on the fiscal front, in the past few days to curtail inflation and future expectations. But, they may not have any major impact on prices till global prices of various commodities start to moderate. Oil and gold prices have cooled off a little in the last couple of days. They need to correct more, as do other essential commodities, particularly food items, to have a sobering effect on local inflation, and therefore interest rates. For the long term, there is only one solution. Boost local production to meet the growing demand.
Asian markets are sharply higher this morning, led by banks on speculation that financial companies will be able to overcome credit market losses. The MSCI Asia Pacific Index added 3.3% to 143.19 as of 10:58 a.m. in Tokyo. All 10 industry groups advanced on the benchmark, which rose the most since March 25. An index of financial stocks led gains.
The Nikkei in Tokyo was up 3.3% at 13,079 while the Hang Seng in Hong Kong shot up 4.5% to 24,178. The Kospi in Seoul rose 2.2% to 1739 while the Straits Times in Singapore advanced 2.4% to 3120. The Shanghai Composite in China gained 2.7% to 3417 and the Taiex in Taiwan added 2% to 8581.
Back to the US stock market, the main stock indices posted solid gains after Lehman Brothers and UBS said they are raising $19bn to replenish capital, fueling some hope that the strained credit market is slowly on the mend. Lehman rose for the first time in seven days and UBS sparked a rally in Europe. GE and United Technologies led industrial shares higher after the Institute for Supply Management's manufacturing index contracted less than forecast.
The S &P 500 Index added 47.48 points, or 3.6%, to 1,370.18, rebounding from the worst quarterly performance since 2002. The index hasn't gained more on the first day of the second quarter since a 4.8% rally in 1938. The Dow surged 391.47 points, or 3.2%, to 12,654.36. The Nasdaq Composite Index gained 83.65 points, or 3.7%, to 2,362.75. Almost 10 stocks advanced for every one that fell on the New York Stock Exchange.
A big positive behind the impressive gains on Wall Street was the favorable reception to Lehman's offering. It was three times oversubscribed, which means that people are interested in investing in Lehman. Shares of the securities firm advanced 17.8% after the company announced plans to offer $4bn in convertible preferred shares. UBS shares gained 14.6% after the company disclosed $19bn in new write-downs and said it would issue another $15bn in shares. Germany's Deutsche Bank reported a $3.9bn write-off, mostly on leveraged loans, commercial real estate and alt-A exposures. Its shares rose about 4%.
On the downside, reports showed that US auto sales continued to slide in March, including Ford, which saw its US sales slump 14%.
The ISM's manufacturing index rose to 48.6 in March, from 48.3 in February, surprising economists who thought it would fall to 47.5, on average. Nonetheless, any reading below 50 indicates weakness in the sector.
Another report showed that construction spending fell 0.3% in February, after falling 1% in January. Economists thought spending would fall 0.9% in February.
A rising dollar sent oil and metal prices lower, providing investors with some relief on the inflation front. US light, crude oil for May delivery fell 60 cents to settle at $100.98 a barrel on the New York Mercantile Exchange. COMEX gold for April delivery fell $33.30 to settle at $882.90 an ounce.
The dollar rose versus the euro and the yen. Treasury prices tanked, raising the yield on the benchmark 10-year note to 3.56% from 3.41% late on Monday.
European shares started the second quarter on a strong footing. The pan-European Dow Jones Stoxx 600 index surged 3.3 % to end at 316.07. The UK's FTSE 100 jumped 2.6% to 5,852.60, while the German DAX 30 surged 2.8% to 6,720.33 and the French CAC-40 rose 3.38% to 4,866.
Major Latin American and other emerging markets also closed higher. The Bovespa index in Brazil opened the second quarter with a rise of 3% to 62,774.85. Mexico's IPC gained 2.8% to end at 31,787.68, its first closing above the 31,000-points level since Dec. 10. The RTS index in Russia was up 0.5% at 2063 and the ISE National 30 in Turkey jumped 4.6% to 50,728.
Market may stage recovery
Thanks to overnight gains in the US and the Asian markets, Indian bourses opened with a promising start hitting an intra-day high of 15,834. However, markets lost ground, and there on turned choppy despite a smart recovery in Asian markets, and a positive start in the European markets. Traders back home preferred to book profits at higher levels.
Further, another dampener was media reports stating, UBS, the European bank hardest-hit by the credit crunch, on Tuesday announced an additional US$19bn in writedowns related to the meltdown in the US subprime mortgages. The Swiss financial major also said that its Chairman Marcel Ospel will step down after reporting a first-quarter loss.
Finally, the BSE benchmark Sensex ended flat at 15,626 and the Nifty index ended at 4,739. Overall about 1,725 stocks advanced; 918 stocks declined while 51 stocks remained unchanged. Among the 30 stocks of Sensex 13 stocks ended in positive territory and 17 stocks ended in red.
Among the BSE Sectoral indices, the BSE Capital Good index (down 3.2%), BSE Metal index (down 1.5%) and BSE Auto index (down 1.2%). Among the gainers, BSE Oil & Gas index (up 3.3%) and BSE FMCG index (up 2%).
Among the 30-scrips of Sensex, L&T, BHEL, ICICI Bank and Bharti Airtel were among the major laggards. On the other hand, RIL, ITC and ONGC were among the major gainers.
Videocon Industries surged by 2.5% to Rs314 after the company said that it may make a bid for Motorola’s Handset unit. The scrip touched an intra-day high of Rs322 and a low of Rs305 and recorded volumes of over 4,00,000 shares on BSE.
RPL surged by over 7% to Rs167 after the company said that they would raise US$500mn for Jamnagar Refinery. The scrip touched an intra-day high of Rs168 and a low of Rs155 and recorded volumes of over 1,00,00,000 shares on BSE.
MTNL gained by over 3% to Rs99 after the company said that it received refunds from Income Tax Department for various assessment years. The total amount received from Income Tax Department amounting to Rs13.95bn out of which Rs1.66bn has been refunded towards interest on refunds. The scrip touched an intra-day high of Rs100 and a low of Rs96 and recorded volumes of over 13,00,000 shares on BSE.
Maruti Suzuki was down by 1.7% to Rs815. The company reported 2.1% decline in sales in March. The company sold 70,296 units last month compared with 71,772 a year earlier. The scrip touched an intra-day high of Rs841 and a low of Rs809 and recorded volumes of over 51,000 shares on BSE.
TVS Motors was trading higher by 1.7% to Rs35. The company announced its March sales fell 8% to 1,17,045 units. The scrip touched an intra-day high of Rs36 and a low of Rs34 and recorded volumes of over 2,00,000 shares on BSE.
BHEL slipped by over 8% to Rs1991, the most in two months on concerns that fourth-quarter profit may miss expectations. The scrip touched an intra-day high of Rs2088 and a low of Rs1881 and recorded volumes of over 4,00,000 shares on BSE.
Kale Consultants was down by a 1.5% to Rs43. The company announced that it secured order from Globalink Transportation. The scrip touched an intra-day high of Rs45 and a low of Rs42 and recorded volumes of over 25,000 shares on BSE.
Ambuja Cement edged higher by 0.5% to Rs121 after the company announced its March sales which rose 16% to 1.72mn tons and March production rose 23.7% to 1.77mn tons. The scrip touched an intra-day high of Rs123 and a low of Rs119 and recorded volumes of over 60,000 shares on BSE.
Accentia Technologies slipped by 2.5% to Rs140. The company announced that it acquired 51% stake in OAK Technologies. The scrip touched an intra-day high of Rs150 and a low of Rs136 and recorded volumes of over 14,000 shares on BSE.
After hitting an intra-day high of Rs38.50, Essel Propack pared all its intra-gains and finally slipped 3.3% to Rs35. The company announced that Tacpro Inc., USA, a subsidiary of Lamitube Technologies (Cyprus) Ltd, which in turn is a wholly owned subsidiary of the Essel Propack has intimated to the Company about the acquisition of 100% shareholding of Catheter and Disposables Technology, Inc., a Company based in Minneapolis, USA and in the business of Medical Devices. The scrip touched an intra-day high of Rs38.50 and a low of Rs35 and recorded volumes of over 81,000 shares on BSE.
Ruchi Soya India’s biggest edible oil importer also erased intra-gains and marginally slipped by half a percent to Rs86. The scrip hit an intra-day high of Rs94 on reduction in edible oils duty. The scrip recorded volumes of over 71,000 shares on BSE.
Pratibha Industries dropped by 2.4% to Rs321. The company said that it secured a contract for construction of a commercial building "SUNSHINE TOWERS" at Dadar (West) Mumbai from Sunshine Housing Development Pvt. Ltd. The value of the contract is Rs370.3mn. The project involves 'construction of a commercial building of basement + 41 floors in structural steel work'. The project is to be executed in 18 months. The scrip touched an intra-day high of Rs334 and a low of Rs315 and recorded volumes of over 2,000 shares on BSE.
Power Grid edged higher by half a percent to Rs98 after the company announced that it would add 8,000km of power lines by March 2009 and would raise Rs45bn via bonds, loans this year. The scrip touched an intra-day high of Rs99 and a low of Rs97 and recorded volumes of over 10,00,000 shares on BSE.
Sunil Hi-Tech rallied by over 8% to Rs206 after the company said that it won Rs1bn order from NTPC and JSW Steel. The scrip touched an intra-day high of Rs209 and a low of Rs194 and recorded volumes of over 16,000 shares on BSE.
Corporate News
Gail signs contract to sell total gas produced in PMT fields. (Mint)
Essel Propack buys a US medical devices firm in an all cash deal. (Mint)
PowerGrid will add 11% power lines in 2008. (Mint)
The IT department gives MTNL Rs13.95bn refund. (BS)
Cairn India to raise US$250mn loan from IFC. (BS)
Maruti’s vehicle sales decline by 2% yoy in March 2008 to 70,296 units. (BS)
Novartis challenges National Pharmaceutical Pricing Authority (NPPA) over Voveran price fixing. (BS)
Bharti Airtel successfully tests 3G applications with various equipment suppliers. (BS)
Provogue sells 27% stake in real estate arm for Rs4,570mn. (BS)
Emaar MGF lines up US$400mn for four hotels in a tie-up with Marriott. (BS)
Arvind Brands, the apparel and retail division of Arvind Mills, plans to open multi-brand outlets. (BS)
Tata Motors vehicle sales up 6% yoy in March 2008 to 66,495 units. (BL)
M&M auto sales up 20% yoy and tractor sales up 8% in March 2008.
Reliance Petroleum to raise US$500mn. (BL)
Bajaj Auto plans to launch four new 125cc motorcycles in FY09. (BL)
Reorganisation of Glenmark Pharma’s business into speciality and generics has been implemented. (BL)
Cairn India’s Bhagyam field development gets clearance. (BL)
Great Offshore buys back shares not exceeding Rs750 per share. (BL)
DLF and Hilton Hotels sign management pacts for seven new hotel developments in the pipeline. (BL)
Gujarat Ambuja Exports’ new plant in Uttrakhand goes onstream. (BL)
Bosch Chassis withdraws delisting plans. (BL)
Videocon likely bid to acquire the hand-set business of Motorola. (ET)
Reliance Industries strikes new gas in Krishna Basin. (ET)
DLF in talks with The Central Group, Thailand for an alliance. (ET)
Ranbaxy Labs to acquire UK business of Dowpharma Small Molecules, a unit of Dow Chemical. (ET)
Tata’s likely to secure GSM spectrum on a Pan-India basis, under the dual technology license. (ET)
IOB ties up with Annapurna, Pune for micro lending. (ET)
Reliance Money enters into agreement with Canadian firm, Recognia to offer technical analysis and price forecasting services. (ET)
TCS to set up Global engineering centre in Pune. (FE)
Tata’s AMC partners with UK-based New Star to extend benefit of investing in Indian equity markets. (FE)
Economy News
Government to tell steel manufacturers to cut prices by 10-20% in a month. (BS)
Airlines opt for differential pricing after fuel price hike. (Mint)
Rates for 192 drugs fixed; that for 35 others revised. (Mint)
Merchandise exports grow by 35% during February 2008. (BS)
General insurance industry posts 12% growth April 2007-February 2008. (BL)
Indian Railways has awarded Bharti Airtel to provide services to its 100,000 employees. (BL)
Government may allow Sugar mills to sell 2mn tons freely in the local market. (ET)
Underwriting to become mandatory for all IPO’s. (ET)
DoT plans to allot start-up spectrum to nine new telecom license holders by April-end. (ET)
The Communication Ministry approves TRAI’s recommendation to let service providers share active infrastructure. (ET)
Exports record a surge of 35% in February 2008 to US$14.23bn. (ET)
Petroleum and Natural Gas Regulator Board says city gas distribution to be awarded on the basis of network tariff, CNG compression charge and length of pipeline proposed to be laid. (ET)
Finance Minister extends service tax refund on three more export related services. (FE)
Twenty-eight companies lined up for developing and running two coal blocks of MahaGuj Collieries Ltd in Orrisa. (FE)
Airline Companies set to hike fares following an increase in jet fuel prices. (FE)
Market likely to remain volatile again
Equity benchmarks ended flat on Tuesday, as the broadly positive mood in Asian markets encouraged bulls to fight back. However, market watchers said the intra-day recovery had more to do with short-covering rather than genuine buying interest.
The 30-share Sensex slipped to an intra-day low of 15,297.96, but pared much of the losses to close at 15,626.62, down 17.82 points over its previous close. The 50-share Nifty closed at 4739.55, up 5.05 points over the previous close. Robust gains by index heavyweights RIL, ONGC and HUL were neutralised by weakness in other key index constituents like Bhel, L&T, M&M, ICICI, ACC and Infosys.
Most players are expecting a volatile session on Wednesday due to UBS and Deutsche Bank reporting huge write-downs related to the subprime crisis. However, the US markets opened strong with the Dow Jones gaining by up to 300 points in early trade.
Motilal Oswal Securities VP (equity strategy) Manish Sonthalia said the “sentiment was still bad” even as there was some amount of “contrarian buying” on Tuesday. “With the softening of commodity prices, one can expect that money will soon find its way to the equity market,” he said.
In stock-specific action, index heavyweight RIL was in the limelight even as it reported its second gas discovery in deep water exploration block in Krishna Basin after market hours. “While the announcement came after market hours, the effect was clearly visible during the day,” said a dealer with a brokerage. The stock gained 3.56% to close at Rs 2,345.10. HUL, REL, TCS, ONGC were the other prominent gainers in the Sensex pack, each gaining in the range of 2% to 5%.
Elsewhere in Asia, the Hang Seng gained nearly 290 points, even as the Shanghai Composite closed down 144 points. The Nikkei also gained 131 points.
Via ET
Today's Pick - YES Bank
We recommend a sell in YES Bank from a short-term perspective. From the charts of YES Bank we see that the stock has been on a medium-term downtrend from its 52-week high of Rs 277 (touched on January 10). However, the stock found support at around Rs 120 levels in mid March and made a corrective up move to Rs 194. This corrective up move of the stock retraced almost 50 per cent (Fibonacci retracement) of its medium-term downtrend. The stock’s recent up move was unab le to prolong further due to the selling pressure that occurred around Rs 194 and the stock resumed the medium-term downtrend by declining. The daily momentum indicator has re-entered the bearish zone. The daily moving average convergence divergence is featuring in the negative territory. The stock is trading well below the 21-day moving average. Our short-term outlook for the stock is bearish. We expect the stock’s medium-term downtrend to continue to our target level of Rs 140 in the short-term. Investors with a short-term perspective can sell the stock with a stop-loss at Rs 175
L&T, Bhel April 2008 futures at premium
Turnover in F&O segment declines
Nifty April 2008 futures were at 4775, at a premium of 35.45 points as compared to spot closing of 4739.55.
The NSE's futures & options (F&O) segment turnover was Rs 35,886.84 crore, which was lower than Rs 47,200.87 crore on Monday, 31 March 2008.
Larsen & Toubro (L&T) April 2008 futures were at premium at 2905 compared to the spot closing of 2897.45.
Bharat Heavy Electricals (Bhel) April 2008 futures were at premium at 1908.50 compared to the spot closing of 1892.20.
Reliance Industries April 2008 futures were at discount at 2342 compared to the spot closing of 2345.25.
In the cash market, the S&P CNX Nifty gained 5.05 points or 0.11% at 4739.55.
Crude ends modestly lower
Prices drop in the $100 range as dollar continues to strengthen
Crude prices fell modestly lower on Tuesday, 01 April, 2008 as dollar rebounded against its rivals. Prices also softened on signs that tomorrow’s weekly inventory report will show inventories rose for the 11th time in 12 weeks as demand weakened.
Crude-oil futures for light sweet crude for May delivery closed at $100.98/barrel (lower by $0.60/barrel or 0.6%) on the New York Mercantile Exchange. Prices earlier fell to $99.55 during intraday trading. Crude prices are 55% higher on a yearly basis. For the year, crude is up by 5.2% till date. It touched a high of $111.8 on 17 March, 2008 but has slipped thereafter.
In the currency market today, the dollar extended gains gaining more than 2% against the yen as stocks soared after the Institute for Supply Management's manufacturing index unexpectedly inched higher. This calmed the recession fears to a little.
A stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies.
Also traders anticipated that crude-oil supplies increased by more than 2 million barrels for the week ended on 28 March. EIA will report the latest status tomorrow.
Brent crude oil for May settlement today fell $0.13 (0.1%) to $100.17 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 drops by 3.7% after gaining 35% in the first quarter
Natural gas declined as speculators trimmed positions after a recent surge in commodity prices. Natural gas for May delivery fell 37.7 cents (3.7%) to settle at $9.724 per million British thermal units.
Against this backdrop, May reformulated gasoline gained 1.21 cent to $2.6392 a gallon and May heating futures fell 2.64 cents to $2.8797 a gallon.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.
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. Also over the weekend, it was reported that OPEC President Chakib Khelil said oil prices would range between $80 and $110 a barrel for the rest of 2008.
At the MCX, crude oil for May delivery closed at Rs 4,056/barrel, higher by Rs 29 (0.72%) against previous day’s close. Natural gas for April delivery closed at Rs 396.8/mmtbu, lower by Rs 2.8/mmtbu (0.7%).
Gold drops bellow 900 mark
Gold and silver prices end lower as dollar continues to rebound
Precious metals continued with their downward journey today, Tuesday, 01 April, 2008 as the rebounding dollar sparked off a strong sell-off in commodities. Bullion metals ended lower as other commodities too declined across the board. Gold fell below the $900/ounce mark for the first time in more than a month’s time.
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. Silver prices also fell for the day.
Comex Gold for June delivery fell $33.7 (3.7%) to close at $887.8 ounce on the New York Mercantile Exchange. Price fell to a low of $876.3/ounce. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce.
This year, gold prices have gained 6.8% for the till date. 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%. Last week, gold prices gained 1.1%.
Comex Silver futures for May delivery fell 42 cents (2.4%) to $16.89 an ounce. Silver has gained 13.6% in 2008 till date. Silver gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. Last week, silver gained 6%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.
In the currency market today, the dollar extended gains gaining more than 2% against the yen as stocks soared after the Institute for Supply Management's manufacturing index unexpectedly inched higher. This calmed the recession fears to a little.
In the energy market today, crude oil fell again in New York on signs that a U.S. report will show inventories rose for the 11th time in 12 weeks as demand weakened. Crude oil for May delivery fell $0.60 (0.6%) to settle at $100.98 a barrel.
After weakening in the early part of the year, dollar tried to strengthen after Federal Reserve went through a slew of interest rate cuts. In the last of the series, Fed decided to cut overnight lending rate by 75 bps to 2.25% during third week of March, 2008. Since last September, Fed has axed interest rates six times. Hence, bullion metals along with other metals witnessed intense sell off together as traders parted away with commodities.
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.
Gold witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. The Fed reduced federal funds rate three times in FY 2007. In 2006, silver had jumped 46% while gold gained 23%. Gold has tripled in five years as investment demand has soared and mine supplies have remained low.
At the MCX, gold prices for June delivery closed lower by Rs 370 (3.1%) at Rs 11,521 per 10 grams. Prices rose to a high of Rs 11,930 per 10 grams and fell to a low of Rs 11,396 per 10 grams during the day’s trading.
At the MCX, silver prices for May delivery closed Rs 313 (1.4%) lower at Rs 21,961/Kg. Prices opened at Rs 22,222/kg and fell to a low of Rs 21,327/Kg during the day’s trading.
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