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Thursday, April 03, 2008
Post Market Watch - Apr 3 2008
The 30-share index Sensex slipped after opening positive in the initial trading hours. The index again bounced back to the positive and proceeded to trade strong backed by intense buying seen in frontliners. It touched a high of 16,002.73. Gains in the Sensex were led by Reliance Industries, Infosys Technologies and Oil & Natural Gas Corp.
However, the Sensex after trading for a short period in the positive zone, could not sustained its strength and slipped into the negative to trade on a flat note. It pared most of its gains to finally close on a positive note, after touching an intraday low of 15,699.21.
The BSE Sensex ended with a gain of 82.15 points at 15,832.55, or 0.52%; while abroad-based NSE Nifty closed at 4,771.60, up 17.4 points, or 0.37%.
Global Cues
Asian shares gained on Thursday, paced by commodities stocks on rise in metal, oil, and rice & wheat prices. BHP Billiton, the world`s largest mining company and Posco, Asia`s third-largest steelmaker led gains among commodities producers.
Market statistics
Out of the total 2,687 stocks traded at the BSE, 1,215 advanced, 1,409 declined while 63 remained unchanged.
Among the sectoral indices at BSE IT surged 3.31%, BSE Oil & Gas rose 1.97%, BSE Metal rose 0.53%, while BSE Bankex declined 0.02%, BSE Auto was down 1.07% and BSE Power dipped 2.60%.
Movers and Shakers
IT companies like Satyam and Wipro, which surged over 5% each to Rs 428.05 and Rs 435.30 respectively and TCS rose 4.13% to Rs 885.95. HUL, Infosys, Hindalco, RIL, Tata Steel, Ambuja Cement, ACC, ONGC and ICICI Bank also moved up.
Losers at the BSE Sensex include BHEL, which plunged 5.27% to finish at Rs 1754.95 followed by M&M and REL, which fell over 3% each to Rs 643.75 and Rs 1189.45 respectively. Maruti, Grasim, Tata Motors, HDFC, RComm, SBI and L&T also slipped.
Top Volumes
RNRL topped the volume chart with 14.04 million shares, Ispat Industries witnessed volumes of 13.39 million shares, RPL with 11.78 million shares and Essar Oil with 8.55 million shares.
New Listing
Shares of Mumbai-based Gammon Infrastructure Projects (GIPL), an infrastructure development company, after listing at a marginal premium of 1.79%, settled at a discount of 5.30% at the NSE on concern over the valuation of the company.
Shares touched a high of Rs 185 and a low of Rs 147 during the day. It closed with a discount of Rs 8.85, or 5.30%, at Rs 158.15 as against issue price of Rs 167. Total volume of shares traded was 12,726,928 and the total turnover was Rs 2,021.8 million at the NSE.
Post Market Commentary - Apr 3 2008
The Indian market closed in the positive territory on a volatile trading session. Tracking the favoring cues from the Asian markets, the domestic market opened on a firm note but was unable to sustain at higher levels as the profit booking prevails. However, buying the lower levels towards the final trading hours of the session led the market to close on a positive note. From the sectoral front, the oil & gas and IT remained in the limelight as most buying was seen from these baskets while Capital goods stocks remained out of favor.
The BSE Sensex closed higher by 82.15 points at 15,832.55 and NSE Nifty closed up by 17.4 points at 4,771.60. The BSE Mid Caps and Small Caps closed lower by 25.74 points and 71.85 points at 6,387.23 and 7,840.29 respectively.
The market breadth was weak as 1409 stocks closed in red as against 1215 stocks that closed in green.
The Oil and Gas index surged 203.80 points at 10,531.88. Major gainers are Essar oil 5.05%, Aban Offshore 4.35%, Cairn India 3.12%, RPL 2.78%, Reliance industries 2.14%, ONGC 0.84% and Gail India 0.63%.
The Metal index closed up by 71.87 points at 13,588.76 as Hindalco inds 2.52%, Tata Steel 2.11%, Welspun Guj 1.82%, SAIL 1.07% and Sterlite industries 0.67% closed in green.
The IT index closed higher by 120.56 points at 3,764.91. Gainers are Rolta India 6.89%, Satyam 5.11%, Wipro 5.04%, TCS 4.13%, Niit Techno 2.70%, Infosys 2.68%, Patni Comp 2.25% closed in positive.
The Bankex index closed flat at 7,820.62 as Yes bank 6.33%, BOB 3.66%, Canara bank 2.34% closed in red while Oriental bank 2.45%, Federal bank 1.75%, Andhra bank 1.28% closed in green.
From the FMCG space, United SPR 4.02%, HUL 3.20%, United Breweries 3.09%, Tata Tea 2.55%, Rei Agro 1.29% and Marico 1.11% closed higher.
The Capital Goods index fell by 283.42 points to close at 13,214.73. Major losers are Bhel 5.27%, Suzlon energy 4.68%, ABB 4.36%, Thermax 3.80%, Crompton Greaves 2.50%, AIA Engineering 2.11% and Siemens 1.87%.
The BSE Realty index increased by 22.15 points to close at 7,523.32 as Akruti city 4.23%, Penland 4.07%, Phoenix mill 2.91%, Mahindra Life 1.54%, Anant Raj 0.38% and DLF 0.31% closed in positive.
NSE Bulk Deal Watch - Apr 3 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,AMBIT SECURITIES BROKING PVT. LTD.,BUY,71069,558.08,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,117815,557.38,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,B K SHAH CO KETAN BHAILAL SHAH,BUY,152938,555.66,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,CHANDARANA INTERMEDIARIES BROKERS P. LTD,BUY,140192,558.10,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,DINESH MUNJAL,BUY,73027,566.05,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,83137,557.43,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,MARWADI SHARES AND FINANCE LIMITED,BUY,112485,557.85,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,NISSAR BROTHERS,BUY,90041,553.22,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,R.M. SHARE TRADING PVT LTD,BUY,89871,553.28,-
03-APR-2008,IOLN,IOL Netcom Limited,DYNAMIC STCOK BROKING (I) PVT LTD,BUY,103871,92.23,-
03-APR-2008,NAVINFLUOR,Navin Fluorine Internatio,DARASHAW & COMPANY PVT. LTD.,BUY,125000,242.00,-
03-APR-2008,OILCOUNTUB,Oil Country Tubular Ltd,UNITED STEEL ALLIED INDUSTRIES PRIVATE LIMITED,BUY,500000,62.80,-
03-APR-2008,ORCHIDCHEM,Orchid Chemicals Ltd.,PRASHANT JAYANTILAL PATEL,BUY,409089,172.82,-
03-APR-2008,ORCHIDCHEM,Orchid Chemicals Ltd.,SOLREX PHARMACEUTICALS COMPANY,BUY,1202850,172.42,-
03-APR-2008,ORIENTBANK,Oriental Bank of Commerce,THE CHILDRENS INVESTMENT MASTER FUND,BUY,10521768,180.00,-
03-APR-2008,PNB,Punjab National Bank,THE CHILDRENS INVESTMENT MASTER FUND,BUY,5744875,549.00,-
03-APR-2008,SHREEASHTA,Shree Ashtavinayak Cine V,MAVI INVESTMENT FUND LIMITED (MM WARBURG BANK(SCHWEIZ)AG),BUY,102501,365.00,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,ADROIT FINANCIAL SERVICES PVT LTD,BUY,112152,86.49,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,110659,90.49,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,DEV SUMAN SINDHU,BUY,82396,84.78,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,DYNAMIC STCOK BROKING (I) PVT LTD,BUY,133901,90.39,-
03-APR-2008,VISAKAIND,Visaka Industries Ltd.,G VIVEKANAND,BUY,80200,51.00,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,AMBIT SECURITIES BROKING PVT. LTD.,SELL,71069,558.27,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,117812,557.39,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,B K SHAH CO KETAN BHAILAL SHAH,SELL,152945,556.48,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,CHANDARANA INTERMEDIARIES BROKERS P. LTD,SELL,140192,558.27,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,DINESH MUNJAL,SELL,73027,565.88,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,83137,558.65,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,MARWADI SHARES AND FINANCE LIMITED,SELL,112430,558.29,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,NISSAR BROTHERS,SELL,90041,553.88,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,R.M. SHARE TRADING PVT LTD,SELL,89871,553.78,-
03-APR-2008,IBSEC,Indiabulls Securities Lim,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,1926144,92.88,-
03-APR-2008,INFOMEDIA,Infomedia India Limited,L&T FINANCE LIMITED,SELL,100000,225.50,-
03-APR-2008,IOLN,IOL Netcom Limited,DYNAMIC STCOK BROKING (I) PVT LTD,SELL,136216,93.73,-
03-APR-2008,NAVINFLUOR,Navin Fluorine Internatio,LAXMI INVESTMENTS,SELL,125000,242.00,-
03-APR-2008,OILCOUNTUB,Oil Country Tubular Ltd,Rajasthali Finvest Pvt Ltd,SELL,500000,62.80,-
03-APR-2008,ORCHIDCHEM,Orchid Chemicals Ltd.,PRASHANT JAYANTILAL PATEL,SELL,409089,173.00,-
03-APR-2008,ORIENTBANK,Oriental Bank of Commerce,MORGAN STANLEY DEAN WITTER MAURITIUS CO. LTD,SELL,10521768,180.00,-
03-APR-2008,PNB,Punjab National Bank,MORGAN STANLEY DEAN WITTER MAURITIUS CO. LTD,SELL,5744875,549.00,-
03-APR-2008,SHREEASHTA,Shree Ashtavinayak Cine V,ACCURATE MERCANTILE PVT LTD,SELL,99000,365.00,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,ADROIT FINANCIAL SERVICES PVT LTD,SELL,112152,86.76,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,92135,90.29,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,DEV SUMAN SINDHU,SELL,82396,85.01,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,DYNAMIC STCOK BROKING (I) PVT LTD,SELL,108991,90.03,-
03-APR-2008,VISAKAIND,Visaka Industries Ltd.,MINIVET LIMITED,SELL,80113,51.00,-
BSE Bulk Deals to Watch - Apr 3 2008
Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
3/4/2008 523850 AXTEL INDUSR NAYAN PATHAK B 51180 11.04
3/4/2008 523850 AXTEL INDUSR ANJALI PATHAK B 40000 11.04
3/4/2008 523850 AXTEL INDUSR NEERAJ KIRITKUMAR PATHAK B 40500 11.04
3/4/2008 532946 BANG MARUTI SECURITIES LTD B 100000 134.80
3/4/2008 532946 BANG CHANDRA FIN. SERV.PVT.LTD S 104038 134.72
3/4/2008 512332 BIRLA CAP AYODHYAPATI INVESTMENT PVT LTD S 58200 6.88
3/4/2008 531682 CAT TECHNOL PRABHUDAS LILLADHER PVT. LTD. B 194034 6.12
3/4/2008 531682 CAT TECHNOL SARFARAZKHAN SARVARKHAN PATHAN B 403818 6.08
3/4/2008 531682 CAT TECHNOL NEWGEN INTERNATIONAL PVT. LTD. S 200000 6.05
3/4/2008 531682 CAT TECHNOL PRABHUDAS LILLADHER PVT. LTD. S 194034 6.13
3/4/2008 531682 CAT TECHNOL SARFARAZKHAN SARVARKHAN PATHAN S 403818 6.10
3/4/2008 532413 CEREBRA INT LOKESH INDER KAPOOR B 30000 31.70
3/4/2008 526550 COUNTRY CLUB DEUTSCHE SECURITIES MAURITIUS LIMITED B 102000 610.00
3/4/2008 526550 COUNTRY CLUB DEUTSCHE BANK AG LONDON GDR ACCOUNT S 102000 610.00
3/4/2008 532271 CYBERMAT INF SARFARAZKHAN SARVARKHAN PATHAN B 519221 6.16
3/4/2008 532271 CYBERMAT INF SARFARAZKHAN SARVARKHAN PATHAN S 518704 6.05
3/4/2008 532951 GSS AMERICA CHANDARANA INTERMEDIARIES BROKERS P. LTD B 119182 554.56
3/4/2008 532951 GSS AMERICA MARWADI SHARES AND FINANCE LIMITED B 123265 556.57
3/4/2008 532951 GSS AMERICA N D NISSAR B 66823 551.14
3/4/2008 532951 GSS AMERICA B K SHAH CO B 147492 555.96
3/4/2008 532951 GSS AMERICA CHANDARANA INTERMEDIARIES BROKERS P. LTD S 119182 554.37
3/4/2008 532951 GSS AMERICA MARWADI SHARES AND FINANCE LIMITED S 123265 555.78
3/4/2008 532951 GSS AMERICA N D NISSAR S 66823 552.77
3/4/2008 532951 GSS AMERICA B K SHAH CO S 147492 555.56
3/4/2008 515147 HALDYN GLA G RAJIV ARORA S 30821 82.00
3/4/2008 531115 JYOTI COSM E S H H REHMAN B 458501 1.66
3/4/2008 531115 JYOTI COSM E SAROJINI FIN AND INV P LTD S 456703 1.66
3/4/2008 532283 KASHYAP TEC OM EDUCATION IT PVT LTD B 1836657 1.99
3/4/2008 512267 MEDIA MATRIX COMMITTED TRADING PVT LTD B 200000 6.02
3/4/2008 524372 ORCHID CHEM SOLREX PHARMACEUTICALS COMPANY B 1062040 172.94
3/4/2008 524372 ORCHID CHEM MARUTI SECURITIES LTD B 777458 172.43
3/4/2008 524372 ORCHID CHEM MACQUARIE BANK LIMITED S 539193 174.29
3/4/2008 524372 ORCHID CHEM MARUTI SECURITIES LTD S 777458 175.71
3/4/2008 500540 PREMIER LTD SUSHMA JAIN B 400000 90.00
3/4/2008 500540 PREMIER LTD LAXMI JAIN B 383191 90.00
3/4/2008 500540 PREMIER LTD CITIGROUP GLOBAL MARKET M PVT LTD S 796694 90.01
3/4/2008 532735 RSYSTEMS INT BHAVOOK TRIPATHI B 165277 78.07
3/4/2008 532735 RSYSTEMS INT RALPH HENRY KENNEY S 165050 78.00
3/4/2008 531215 RTS POWER CO JAIGURUDEV CONSULTANCY SERVI B 29000 167.00
3/4/2008 531215 RTS POWER CO MEHTA FINANCIAL SERVICES LTD. S 29000 167.00
3/4/2008 513530 STELCO STRIP SAINATH HERBAL CARE MARKETING P LTD B 61955 33.21
Market ends flat amid volatility
The market was highly volatile as stocks gyrated between zones throughout the trading session, with the index witnessing an intra-day swing of 303 points. In initial trades, on the back of a firm global indices, the Sensex began on a positive note at 15,806, 56 points above its previous close and rallied sharply above the 16,000 level to touch an intra-day high of 16,003. Steady to firm selling pressure thereafter saw the index plunge deep in red to slip below the 15,700 mark and touch a low of 15,699. Although the Sensex managed to erase most of its losses on buying in most of the heavyweights, it still ended 82 points up at 15,833. The Nifty nearly ended flat at 4,772.
The breadth of the market was negative. Of the 2,687 stocks traded on the BSE 1,395 stocks declined, 1,235 stocks advanced and 57 stocks ended unchanged.
Among the sectoral indices, the BSE IT index rose 3.31% at 3,765, while the BSE Oil & Gas index, the BSE FMCG index, the BSE HC index, the BSE Metal index and the BSE Realty index ended with modest gains. The BSE CG & Power were the biggest losers and dropped by 2% each.
Selective buying helped the index overcome its losses. Satyam Computer flared up 5.11% at Rs428, Wipro advanced 5.04% at Rs435, TCS rose 4.13% at Rs885.95 and HUL added 3.20% at Rs243.35. Infosys, Reliance Industries, Tata Steel, Ambuja Cement, ACC and ONGC performed with steady gains.
Selling was evident in select heavyweight counters. BHEL dropped 5.27% at Rs1,754.95, Mahindra & Mahindra declined 3.38% at Rs643.75, Reliance Energy tumbled 3.32% at Rs1,189.45, Maruti Suzuki shed 2.95% at Rs788.30, Grasim dipped 2.15% at Rs2,560, Tata Motors moved down by 1.43% at Rs628.70, HDFC moved down by 1.11% at Rs513.40 and Reliance Communications 1.09% at Rs510.
BSE Power stocks dropped sharply. Suzlon Energy dipped 4.68% at Rs272.10, ABB dropped 4.36% at Rs1,138.55, Areva declined by 3.57% at Rs1,463 and GMR infra lost 2.95% at Rs143. Torrent Pharma, Crompton and Tata power scaled down 2% each.
Over 1.80 crore IB Securties shares changed hands on the BSE followed by RNRL (1.40 crore shares), Ispat Industries (1.33 crore shares), RPL (1.17 crore shares) and Gammon Infra (1.05 crore shares)
Sensex up 1023 points from recent low
The key benchmark indices ended higher extending yesterday’s gains. Market had surged in early afternoon trade when the BSE Sensex surpassed 16,000 mark. It immediately fell below that level.
IT stocks rose. Capital goods, power stocks declined. Reliance Industries gained. Wipro and Satyam Computer Services were major gainers from the Sensex pack. Bharat Heavy Electricals (Bhel) declined after announcing provisional results for the year ended March 2008. Reliance Energy and Mahindra & Mahindra were other major losers from Sensex pack. The market breadth was negative compared to strong breadth at the onset of the trading session. BSE Mid-Cap and Small-Cap indices declined.
European markets which opened after Indian market, were subdued. France's CAC, Germany's DAX and UK's FTSE 100 were down by between 0.43% to 0.76%. Asian markets which opened before Indian market edged higher after a US jobs indicator raised hopes of a milder recession than previously feared in the world's biggest economy.
The 30-share BSE Sensex gained 82.15 points or 0.52% at 15,832.55. At the day’s high of 16002.73, the Sensex rose 252.33 points in early afternoon trade. At the day’s low of 15,699.21 Sensex lost 51.19 points in early trade.
The broader based S&P CNX Nifty gained 17.4 points or 0.37% at 4,771.60.
From recent low of 14,809.49 on 17 March 2008 Sensex has recovered 1023.06 points or 6.9% at current 15,832.55. From the recent high of 16,371.29 on 28 March 2008, Sensex is off 538.74 points or 3.29%
BSE clocked a turnover of Rs 4789 crore today 3 April 2008 compared to a turnover of Rs 4,955.40 on 2 April 2008.
As per the provisional figure on NSE, foreign institutional investors were net sellers of Rs 393.21 crore in Indian equities while domestic funds were net buyers of shares worth Rs 265.39 crore.
The market breadth was negative: On BSE 1215 shares advanced as compared to 1409 that declined. 63 shares remained unchanged.
The BSE Mid-Cap index down 0.4% to Rs 6,387.23 and BSE Small-Cap index down 0.91% to 7,840.29.
Nifty April 2008 futures were at 4785, at a premium of 13.40 points as compared to spot closing of 4771.60.
The NSE's futures & options (F&O) segment turnover was Rs 32,513.16 crore, which was lower than Rs 34,170.35 crore on Wednesday, 2 April 2008.
BSE IT index (up 3.31% to 3,764.91), BSE Oil & Gas index (up 1.97% to 10,531.88), BSE FMCG index (up 1.12% to 2,344.68), BSE HealthCare index (up 0.64% to 3,887.73), BSE Metal index (up 0.53% to 13,588.76) outperformed Sensex.
BSE Realty index (up 0.3% to 7,523.32) , BSE Bankex (down 0.02% to 7,820.62), BSE PSU index (down 0.54% to 7,347.78), BSE Auto index (down 1.07% to 4,490.94), BSE Consumer Durables index (down 1.53% to 3,857.74), BSE Capital Goods index (down 2.1% to 13,214.73) and BSE Power index (down 2.6% to 3,055.57) underperformed Sensex.
IT stock surged on hopes a US recession might not be deep as feared. Wipro (up 5.04% to Rs 435.30), Infosys (up 2.68% to Rs 1,521.65), Tata Consultancy Services (up 4.13% to Rs 885.95) and Satyam Computer Services (up 5.11% to Rs 428.05) edged higher. The US private sector added 8,000 jobs in March 2008, according to a report on Wednesday by ADP Employer Services, surpassing economist expectations. IT firms derive more than half of their revenue from exports to US.
Capital goods stocks declined. India's biggest power equipment maker by sales Bharat Heavy Electricals declined 5.27% to Rs 1754.95. Based on provisional figures, the company today reported 16.56% growth in net profit to Rs 2815 crore in the year ended March 2008 over the year ended March 2007. India’s largest engineering firm by sales Larsen & Toubro declined 0.54% to Rs 2,850.05.
Power stocks were mixed. India’s largest power generation firm by sales National Thermal Power Corporation rose 0.1% to Rs 194.25 after the company formed a joint venture company with Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL) under the name Meja Urja Nigam for setting up a power plant of 1320 megawatt in Allahabad district in the state of Uttar Pradesh. NTPC and UPRVUNL will each hold 50% stake in the share capital of the joint venture company.
Reliance Energy (down 3.32% to Rs 1,189.45), Power Grid Corporation of India (down 0.8% to Rs 99.20), Tata Power Company (down 2.34% to Rs 1,159.30). However Reliance Power rose 1.06% to Rs 329.60.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries rose 2.14% to Rs 2,393.75.
India’s largest commercial bank State Bank of India down 0.81% to Rs 1,639.10. The bank said on Wednesday, 2 April 2008, it had finalised issue of bonds to raise 12 billion yen ($117.7 million). The bonds will mature in five years and carry a coupon of 3.36%, it said in a statement to the Bombay Stock Exchange. The bonds will be issued on 8 April 2008, the bank said.
India’s largest tractor maker by sales Mahindra & Mahindra declined 2.29% to Rs 651. A consortium of Mahindra & Mahindra and private equity firm ICICI Venture Funds has signed an agreement to buy Italian gear manufacturer Metalcastello. Financial details of the deal, which is subject to approvals, were not disclosed.
Hindalco Industries (up 2.52% to Rs 170.95), Jaiprakash Associates (up 0.47% to Rs 233.40), Tata Steel (up 2.11% to Rs 659.60), ONGC (up 0.84% to Rs 1,019.55), Hindustan Unilever (up 3.2% to Rs 243.35) and ICICI Bank (up 0.47% to Rs 787.90) edged higher from the Sensex pack.
Maruti Suzuki India (down 2.92% to Rs 788.50), Grasim Industries (down 2.15% to Rs 2,560.95) Tata Motors (down 1.48% to Rs 628.70), HDFC (down 1.11% to Rs 2,442.90) and Bharti Airtel (down 0.36% to Rs 821.05) edged lower from the Sensex pack.
Gammon Infrastructure Projects (GPIL) settled at a discount of 5.45% to Rs 157.90 on BSE on its debut today. The company had priced the initial public offer (IPO) at Rs 167 – at the lower end of the Rs 167 - Rs 200 price band.
Indiabulls securities clocked highest volume of 1.8 crore shares on BSE. Reliance Natural Resources (1.4 crore shares), Ispat Industries (1.33 crore shares), Reliance Petroleum (1.17 crore shares) and Essar Oil (85.52 lakh shares) were the other volume toppers in that order.
Reliance Capital clocked a highest turnover of Rs 250.41 crore on BSE. GSS America Infotech (Rs 246.02 crore), Bharat Heavy Electricals (Rs 219.88 crore), Reliance Petroleum (Rs 198.01 crore) and Reliance Industries (Rs 195.67 crore) were other turnover toppers in that order.
In Asia, the key benchmark indices in Hong Kong, Japan, South Korea, Singapore and China were up by between 1.04% to 2.94%.
US stocks declined on Wednesday after Federal Reserve Chairman Ben Bernanke said a recession was possible, spurring profit-taking a day after the market's biggest rally in two weeks. The Dow Jones industrial average shed 48.53 points, or 0.38%, at 12,605.83. The Standard & Poor's 500 Index lost 2.65 points, or 0.19%, at 1,367.53. The Nasdaq Composite Index was down 1.35 points, or 0.06%, at 2,361.40.
Prospects of further monetary tightening by the Reserve Bank of India (RBI) following a surge in inflation is a cause for concern at a time when the already high rates are pinching the domestic industry. The surge in inflation has triggered fears that RBI my raise cash reserve ratio (CRR). An increase in CRR would suck out liquidity immediately pushing up the cost of funds and thereby curbing demand.
The next major trigger for the market is Q4 March 2008 results of India Inc. As per market talks IT bellwether Infosys may issue muted guidance for the year ending March 2009 in the backdrop of a slowdown in the US economy. Infosys unveils Q4 results on 15 April 2008.
The market sentiment remains edgy as Indian companies are sitting on 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.
BSE Sensex had risen 123.78 points or 0.79% at 15,750.40 on Wednesday on positive cues from the global markets.
Market may extend gains
The market may extend Wednesday (2 April 2008)’s gains as Asian markets shrugged off overnight slide in US stocks. However, upside may be capped due to concerns of possible monetary tightening by the Reserve Bank of India and due to caution ahead of Q4 March 2008 results.
Prospects of further monetary tightening by the Reserve Bank of India (RBI) following a surge in inflation is a cause for concern at a time when the already high rates are pinching the domestic industry. The surge in inflation has triggered fears that RBI my raise cash reserve ratio (CRR). An increase in CRR would suck out liquidity immediately pushing up the cost of funds and thereby curbing demand.
The next major trigger for the market is Q4 March 2008 results of India Inc. As per market talks IT bellwether Infosys may issue muted guidance for the year ending March 2009 in the backdrop of a slowdown in the US economy. Infosys unveils Q4 results on 15 April 2008.
The market sentiment remains edgy as Indian companies are sitting on 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.
In Asia, the key benchmark indices in Hong Kong, Japan, South Korea, Singapore and China were up by between 0.55% to 0.8%.
US stocks declined on Wednesday after Federal Reserve Chairman Ben Bernanke said a recession was possible, spurring profit-taking a day after the market's biggest rally in two weeks. The Dow Jones industrial average shed 48.53 points, or 0.38%, at 12,605.83. The Standard & Poor's 500 Index lost 2.65 points, or 0.19%, at 1,367.53. The Nasdaq Composite Index was down 1.35 points, or 0.06%, at 2,361.40.
As per provisional data, foreign funds sold shares worth a net Rs 135.65 crore on Wednesday, 2 April 2008. Domestic funds bought shares worth a net Rs 264.37 crore.
Foreign funds were net buyers of Rs 1,773.24 crore in the futures & options segment on Wednesday. According to data released by the NSE, foreign institutional investors (FIIs) were net buyers of index futures to the tune of Rs 1,563.18 crore and bought index options worth Rs 43.98 crore. They were net buyers of stock futures to the tune of Rs 164.07 crore and bought stock options worth Rs 2.01 crore.
BSE Sensex rose 123.78 points or 0.79% at 15,750.40 on Wednesday on positive cues from the global markets.
Sideways movement may continue
The market is likely to witness sideways movement on the back of a strong intra-day volatile moves. Stocks across sectors along with heavyweights may gyrate sharply. Overnight weakness in the US indices and mixed Asian markets in mornings trades may further dampen the investors' sentiment. On the technical side, the Nifty has a stiff resistance at 4900 and the downside cap at 4640, while the Sensex could test higher levels of 15930 and has a likely support at 15530.
US indices registered steady losses on Wednesday with the Dow Jones dropped 49 points to close at 12606, the Nasdaq fell a points at 2361.
Indian floats, too, largely remained weak on the US bourses. ICICI Bank & VSNL tumbled 4% each while Satyam, HDFC Bank, MTNL, Rediff and Dr Reddy were down over 1-3% each. Infosys ended with marginal loss. Patni Computer, Tata Motor and Wipro, however, gained marginally.
Crude oil prices in the US market gained on Wednesday, with the Nymex light crude oil for May 08 delivery advanced by $3.85 to close at $104.83 a barrel and in the commodity space, the Comex gold for June 08 series gained $12.40 cents to settle at $900.20 a troy ounce.
Morning Call - Apr 3 2008
Market Grape Wine :
In House :
Nifty at a supp of 4730 and 4645 with resistance at 4820 and 4910 levels.
Cash : Buy Fin Tech above 1640 TGT 1700 with S/L 1610
Cash : Sell Aban below 2195 TGT 2050 with S/L 2240.
Future: Buy BOB above 300 TGT 314 with S/L 297
Future: Sell DLF below 616 TGT 600 with S/L 623.
Out House :
Markets at a support of 15456 & 15654 and resistance at 15786 & 16161 levels .
Buy : RPL
Buy : RIL
Buy : HDIL & Coreproject
Buy : IciciBank
Buy : GMR & IBullFin
Buy : JPASSO
Buy : GtOffshore
Buy : Titan
Buy : SBIN at dips
Dark Horse : IBulls , INFY , HDIL , GujNre , IOLN , RIL , & RPL
Gammon Infrastructure, Titagarh Wagons Grey Market Premiums
Gammon Infra 167 10 to 15
Sita Shree Food Products 30 5 to 8
Titagarh Wagons Ltd. 540 to 610 15 to 20
Kiri Dyes & Chemicals 125 to 150 14 to 15
Pre Market Watch - Apr 3 2008
The Indian Market is likely to have a positive opening today as the Asian market is trading higher. On Wednesday, The Indian market closed marginally higher after giving up most of its early gains despite 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 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. We expect that the market may remain volatile during the trading session.
On Wednesday, the US market closed in negative territory. The Dow Jones Industrial Average (DJIA) closed lower by 48.53 points at 12,605.83 along with S&P 500 (SPX) index fell by 2.65 points to close at 1,367.53 and NASDAQ Composite (RIXF) dropped by 1.35 points to close at 2,361.40.
The Indian ADRs closed in negative. In technology sector, Satyam fell by (3.56%) along with Infosys by (0.69%) while Wipro grew by (1.48%). In banking sector, ICICI bank and HDFC bank dropped by (4.20%) and (3.53%) respectively. In telecommunication sector, Tata Communications and MTNL slipped by (4.13%) and (1.35%) respectively. Sterlite industries decreased by (4.23%).
Today the major stock markets in Asia are trading firm. Hang Seng is trading higher by 147.33 points at 24,019.76 along with Singapore Strait Times trading up by 13.31 points at 3,137.92 and Japan’s Nikkei trading at 13,200.71 up by 11.35 points.
The FIIs on Wednesday stood as net seller in equity. The gross equity purchased was Rs2,661.40 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,849.60 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs1,188.20 Crore) and net debt was Rs0.00 Crore.
The country''s exports registered a 35% growth in February 2008 with the cumulative export growth during the first 11 months of just-ended fiscal 2007-08 showing a robust growth close to 23% in dollar terms, against heavy odds the exporters confronted throughout the year due to the unrelenting increase in the value of rupee. Provisional trade data released by the Directorate-General of Commercial Intelligence & Statistics (DGCI&S) show that the country''s exports during February 2008 were estimated at $14.2 billion, against $10.5 billion in the corresponding month of 2007. At best, exporters say that the final month export figure could at best be $14-15 billion which itself would be a tall order. Interestingly, while the export growth in rupee terms during February 2008 was 21.7 per cent, cumulative export growth during the first 11 months of the fiscal 2007-08 was in single digit at close to 9%.
Today, Nifty has support at 4,623 and resistance at 4,819 and BSE Sensex has support at 15,314 and resistance at 15,993.
Trading Calls - Apr 3 2008
Nifty (4754) Sup 4600 Res 4850
Buy NDTV (391) SL 386
Target 400, 403
Buy Tata Chem (289) SL 284
Target 297, 301
Buy Cent Textile (742) SL 735 Target 760, 765
Sell Nalco (448) SL 453
Target 439, 435
Sell Tulip (841) SL 849
Target 820, 815
Recession…Its official
Wall Street indices predicted nine out of the last five recessions! – Paul Samuelson.
The recession may have already started in the US. This indication comes from none other than Federal Reserve Chairman Ben S. Bernanke. Though he didn't utter the "R" word in his testimony to the Congress, Bernanke hinted that situation in the US has deteriorated since the last official forecast in January.
What's worse, the IMF is of the view that there is a 25% chance of a global recession, and has cut its growth forecast for the year from 4.1% to 3.7%. A global recession will kick in when the world economic growth slips to 3%. In short, there is no escaping the fact that the global gloom is nowhere near the end.
US and other global equity markets had rallied on Tuesday amid optimism that the subprime mortgage induced credit crunch could be turning the corner. However, Bernanke's latest assessment of the US economy and the IMF predictions do not seem to jell with the markets' view. So, clearly, the worst may not be over yet, though the stock markets across the world seem to be proving resilient. There are more chances of markets going down than rallying from here given the "X" factor that continues to hang over the global markets.
In this context, we see the key indices in India opening on a cautious note. Yesterday, the bulls could not hang on to strong gains made in the morning though Asian markets were on a strong wicket. Traded volume improved over the Tuesday's session but remain quite pathetic to say the least. And, if the withdrawal of the STT benefit under Section 88E was not enough the street was abuzz with rumours of rationalisation in stamp duty. According to some market observers, that may have led to the steep fall in the key indices from the day's high. Having said that, we would refrain from speculation. As far as the market trend is concerned, much will continue to hinge on the emerging global equations, fund flows, local economic outlook and of course on corporate earnings and guidance for the current fiscal year.
We see the market rangebound within a couple of thousand points and choppy in the near term. No major breakout is expected till things start to stabilise, both locally as well as globally. The next few months will be painful for the bulls, though there will always be opportunities to pick up good quality stocks for the long haul which one should be careful in judging. Stick to the large caps as you build your portfolio. A small portion you may punt in mid-caps. Shares of Gammon Infrastructure Projects will get listed on the bourses today.
Asian markets are trading mixed this morning. The Nikkei in Tokyo was nearly flat at 13,200 while the Hang Seng in Hong Kong gained 218 points or 0.9% at 24,090. The Kospi in Seoul advanced 0.7% at 1754 and the Straits Times in Singapore rose 0.7% at 3146.
The Shanghai Composite index in China gained 0.9% at 3378 and the Taiex in Taiwan dropped 0.2% to 8588.
The MSCI Asia Pacific Index added 0.7% to 144.11 as of 11:12 a.m. in Tokyo, following a 3.2% surge yesterday that lifted the benchmark to a one-month high. A measure of raw- materials producers posted the biggest advance among the index's 10 industry groups.
US stocks fell for the first time in three days after Fed Chairman Bernanke acknowledged that the world's biggest economy may be in a recession.
The S&P 500 decreased 2.65 points, or 0.2%, to 1,367.53. The Dow Jones Industrial Average lost 45.44, or 0.4%, to 12,609.92 after gaining 391 points yesterday. The Nasdaq Composite Index finished almost flat at 2,361.4.
Despite market loses, breadth was mostly positive Wednesday.
The Department of Energy's weekly oil inventory report showed crude supplies increased 7.3 million barrels, much more than the 2.3 million analysts were expecting. But gasoline supplies dropped more than expected.
US light crude oil for May delivery soared $3.85 to $104.83 a barrel in New York after slipping below $100 earlier on the day. COMEX gold for June delivery added $12.40 to $900.20 an ounce after falling below $900 for the first time in nine weeks Tuesday.
The dollar fell near an all-time low against the euro but posted slight gains versus the yen Wednesday. Long term treasury prices slipped a bit, raising the yield on the benchmark 10-year note to 3.60% from 3.55% at Tuesday's close.
Before a hearing of the Joint Economic Committee of Congress, Bernanke said he believed the economy is still slightly growing at the moment, though a US recession is possible. He said he expects a continued rise in unemployment, and he noted that the economic outlook has worsened since the Fed's last forecast was released in January.
Bernanke also defended the Fed's role in the fire-sale of Bear Stearns to JPMorgan Chase last month, saying he took the actions to provide a smooth functioning of financial markets needed by all Americans.
Though stocks traded higher shortly after the morning hearing, Wall Street fell back a bit in the afternoon.
In a survey of private employers, businesses added jobs in March, according to payroll services company Automatic Data Processing. The report showed an increase of 8,000 private sector jobs last month, instead of the decline of 45,000 economists were expecting.
Also, outplacement firm Challenger, Gray & Christmas reported that March layoff notices fell by 26% to 53,579 from February. But that still puts the number of cuts announced 9% above year-earlier levels.
Both reports come ahead of Friday's closely watched employment report from the Labor Department, which includes private and public sector jobs data.
US factory orders fell a worse-than-expected 1.3% in February, although it was less than the 2.3% decline in January. Economists forecasted a decline of 0.8% for the month.
In corporate news, CNBC reported just before the market's close that Merrill Lynch is planning to cut 10% to 15% of its workforce - excluding brokers - sometime in May.
European shares extended second-quarter gains. The pan-European Dow Jones Stoxx 600 index closed 1.1% higher to 319.59, building on the gains made on Tuesday. The German DAX 30 rose 0.9% to 6,744.44, while the French CAC-40 advanced 0.9% to 4,911.97 and the UK's FTSE 100 climbed 1.1% to 5,915.90.
The emerging markets closed mixed. The Bovespa in Brazil was up almost 1% at 63,364 while the IPC index in Mexico was down 1% at 31,467. The RTS index in Russia rose 0.3% to 2069 and the ISE National 30 index in Turkey advanced 0.9% to 51,166.
Bulls fail to capitalise on strong start
It was a day of gradual slide for India bourses. After posting a promising start, key indices were unable to capitalize on their gains as traders preferred to book profits at higher levels. The fall was seen despite a firm close in the Asian markets. However, a weak start to the European markets slightly dampened the sentiments. The benchmark index fell nearly 500 points and Nifty index fell over 150 points from their respective highs.
Overnight gains in the US markets coupled with strong cues coming in from the Asian markets lifted the benchmark Sensex above the 16,200 mark in intra-day. There on, markets reversed and started gradually erasing its early gains as key indices faced stiff resistance at higher levels.
Further, as the day progressed slightly weak start in the equity markets across Europe dampened the sentiments. Profit booking was also seen in the Metal, FMCG and Power stocks. However, the IT and the Banking stocks were in demand.
Finally, the BSE benchmark Sensex ended up by 123 to close at 15,750 and the Nifty index ended 14 points higher to 4,754. Among the 50-Nifty 28 stocks ended in positive territory and 22 stocks ended in red.
Overall about 1,760 stocks advanced; 911 stocks declined while 49 stocks remained unchanged. Among the 30-scrips of Sensex, Tata Steel, Reliance Energy, ITC, L&T and BHEL were among the major laggards. On the other hand, ICICI Bank, Infosys and HDFC were among the major gainers.
Among the BSE Sectoral indices, the BSE IT index (up 2.9%), BSE Bankex index (up 2.3%) and BSE Auto index (up 1.5%). Among the losers, BSE Metal index (down 2.1%) and BSE FMCG index (down 0.7%).
The steel stocks lost their shine after reports stated that the government would direct the steel manufacturers to cut prices by 10-20% in a month. Tata Steel slipped 3.2% to Rs645, Tata Sponge declined 1.6% to Rs248, Jindal Steel was down 2% to Rs1973 and SAIL lost 4% to Rs167.
Airline stocks gained altitude after media reports stated that the airline companies would hike fares following an increase in jet fuel prices. Spice Jet edged higher by 0.5% to Rs41, Jet Airways was flat at Rs547.
Spice Telecom rallied by over 10% to Rs33 after media reports stated that Mr Modi, Chairman and Managing Director want to dilute promoter holding in Spice Telecom in favour of foreign players UAE's Telecommunications Corporation Etisalat. The total promoter holding in Spice Telecom is 40.8%. The scrip touched an intra-day high of Rs36 and a low of Rs32 and recorded volumes of over 37,00,000 shares on BSE.
Prithvi Info edged lower by 0.5% to Rs155. The company said that the company secured Rs120mn order from Huwei. The scrip touched an intra-day high of Rs163 and a low of Rs154 and recorded volumes of over 58,000 shares on BSE.
GTL gained by a percent to Rs259 after the company announced that the founders raised their stake to 39.31% in the company. The scrip touched an intra-day high of Rs263 and a low of Rs255 and recorded volumes of over 24,000 shares on BSE.
Steel Stripes Wheels, manufacturers of single steel wheel rims, surged by over 3.5% to Rs174 after the company declared its March sales rose 30.7% to 5,53,000. The company also announced its March production which rose 30.2% to 5,56,000 units. The scrip touched an intra-day high of Rs174 and a low of Rs168.
Era Infrastructure marginally gained 0.2% to Rs587 after the company announced that it secured order worth Rs40mn from Jeet Builders. The scrip touched an intra-day high of Rs610 and a low of Rs555 and recorded volumes of over 51,000 shares on BSE.
Bank of Maharashtra was up by a over 3% to Rs50. The Bank's decision to establish General Insurance Joint Venture in partnership with M/s. Shriram Financial Services Holdings P Ltd, Chennai and Sanlam Ltd of South Africa, could not be finalized as per the Bank's requirement and hence the Bank has opted out of the said Joint Venture. The scrip touched an intra-day high of Rs51 and a low of Rs49 and recorded volumes of over 33,000 shares on BSE.
IVRCL Infrastructures advanced by over 2% to Rs394 after the company announced that the Buildings & Industrial Structure (B & IS) Division bagged orders of the value of Rs4.84bn. Scope of Work:- Construction of various Buildings varying from G+4 to G+25, approximate Construction Area of 40 Lacs Sq. ft, out of total Integrated Township of approximate 1.2 Crore Sq. ft construction area in 237 acres of land located on the Bank of River Ganges at New Bata Road, Batanagar, Mahestala, Kolkata, to be completed in 42 months. The scrip touched an intra-day high of Rs420 and a low of Rs387 and recorded volumes of over 1,00,000 shares on BSE.
FIIs were net sellers of Rs1.36bn (provisional) in the cash segment yesterday while local institutions pumped in Rs2.64bn. In the F&O segment, foreign funds were net buyers of Rs17.73bn yesterday.
On Tuesday, FIIs were net sellers of Rs11.88bn in the cash segment. Mutual Funds were also net sellers of Rs2.85bn on the same day.
Corporate News
HUL announces a performance-linked bonus along with a steep hike in salaries to its top management. (ET)
Tata Motors planning to raise 100bn yen on Tokyo exchange. (ET)
NTPC plans to enter into captive power generation and retail distribution in the upcoming SEZs. (FE)
TCS to invest Rs9bn in Pune to create a capacity for 20,000 seats over next three years. (FE)
A consortium of M&M and ICICI Ventures signed definitive agreement to buy 100% in Italian gear maker Metalcastello. (ET)
GMR Infra plans to raise US$3bn over the next 4-5 years to fund expansion of power projects. (DNA)
NTPC has signed a JV with a state entity in Uttar Pradesh to set-up a 1,320 MW power plant. (DNA)
American Tower Company (ATC) is close to investing in tower entity of Tata Tele. (DNA)
Suzlon Energy’s US arm bags a contract to supply 200MW from a local company. (ET)
IVRCL’s buildings and industrial structure division wins orders worth Rs4.84bn. (BL)
TVS Motors plan to sell 60,000 electric scooters in 2008-09. (DNA)
Welspun Gujarat is setting-up a new 0.3mtpa facility in the US. (DNA)
Voltas wins a contract from a UAE-based company for construction of a cooling plant at the Dubai International Financial Centre. (DNA)
Suzlon’s January-March results may see a hit due to company’s forex exposure. (FE)
Telekom Malaysia might partner with strategic investors to increase their combined stake in Spice Communications to 74%. (BS)
Gateway Distrparks’ arm to raise Rs3.3bn from private equity investors. (ET)
Provogue lines up JV for foray into infrastructure. (ET)
Maytas Consortium to build two airports for Rs2bn in Karnataka. (BS)
Royal Orchid Hotels has acquired a 50% stake in Cosmos Premises Pvt Ltd which owns Galaxy Resorts in Goa. (DNA)
Steel Strips Wheels Ltd gets an order of Rs1.1bn for supply of about 1mn steel wheel rims over five years from Renault. (BL)
Zensar Technologies is targeting over 10% of revenues from West Asia and South Africa. (BL)
Koutons Retail promoters are looking at diluting 5-7% stake in 2009-10 to raise funds for more than doubling the number of exclusive outlets by 2011. (BL)
Economy News
Government has asked cold rolled (CR) steel makers to voluntarily reduce prices. (ET)
Government is considering a ban on cement exports. (BS)
Retail rentals see little or no growth in Delhi NCR, Bangalore, Hyderabad and Kolkata while continue to soar in Mumbai in the past six months. (ET)
Railways increases freight rates on iron ore transportation by 5-6%. (DNA)
Industrial output growth to dip further to 3.4% in April-July 2008 says Assocham. (ET)
Today's Pick - LIC Housing Finance
We recommend a sell in LIC Housing Finance from a short perspective. It is clearly visible from the charts of LIC Housing Finance that the stock has been moving sideways since January 2008 in a range between Rs 235 and Rs 315.
Following a short-term rally for the lower boundary level (Rs 235), the stock witnessed selling pressure at around Rs 300 that is just below the upper boundary level recently. On April 2, the stock declined forming a bearish engulfing candlestick pattern accompanied with above average volume, which is a reversal pattern. With this decline, the daily momentum indicator also began to decline in the neutral region.
Moreover, the stock has been on an intermediate term downtrend from its 52-week high of Rs 402 touched on December 11. Considering the intactness of the intermediate term downtrend and the bearish engulfing candlestick pattern of the stock, we expect the stock to decline to our target level of Rs 235 in the short-term. Investors with a short-term perspective can sell the stock with stop-loss at Rs 300.
Via BL
Precious metals gain back
Gold and silver prices end higher as dollar loses steam
After sharply declining in the previous two sessions, precious metals rose today as dollar lost some energy against its rivals. The dollar lost steam against its counterpart after the Federal Reserve Chairman, Ben Bernanke told today that the economy in the US might contract in the first half of the current year. Bullion metals ended higher as other commodities like oil too rose across the board. Gold rose above the $900/ounce mark once again.
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 rose for the day.
Comex Gold for June delivery rose $12.4 (1.4%) to close at $900.2 ounce on the New York Mercantile Exchange. Price rose to a high of $903/ounce earlier in the day. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce.
This year, gold prices have gained 8.2% 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 rose 29 cents (1.7%) to $17.18 an ounce. Silver has gained 15.3% 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 index, which tracks the performance of the U.S. currency against other major currencies, was last down 0.25%. The dollar had firmed earlier after the ADP employment report showed that private sector jobs rose by 8,000 in March. But then it fell in the course of the day. In testimony to Congress, Bernanke said that the outlook for U.S. economic growth has worsened since January and that the possibility of a recession can't be ruled out.
In the energy market today, crude oil rose more than $3 a barrel and gasoline surged to a record after an Energy Department report showed that U.S. supplies of the motor fuel fell a third week. Crude oil for May delivery rose $3.85 (3.8%) to settle at $104.83 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 higher by Rs 78 (0.7%) at Rs 11,560 per 10 grams. Prices rose to a high of Rs 11,620 per 10 grams and fell to a low of Rs 11,432 per 10 grams during the day’s trading.
At the MCX, silver prices for May delivery closed Rs 383 (1.7%) higher at Rs 22,344/Kg. Prices opened at Rs 22,025/kg and rose to a high Rs 22,388/Kg during the day’s trading.
Crude shoots up
Prices rise as dollar eases and crude supplies register drop in inventories
Crude prices rose today, Wednesday, 02 April, 2008 as dollar lost steam and Energy Department report showed that U.S. supplies of the motor fuel fell a third week. rebounded against its rivals. Market was anticipating that weekly inventory report will show crude inventories rose for the 11th time in 12 weeks as demand weakened and the same did.
Crude-oil futures for light sweet crude for May delivery closed at $104.83/barrel (higher by $3.85/barrel or 3.8%) on the New York Mercantile Exchange. Prices earlier fell by $1 below $100 during intraday trading. Crude prices are 59% higher on a yearly basis. For the year, crude is up by 9% till date. It touched a high of $111.8 on 17 March, 2008 but has slipped thereafter.
As per the inventory report by Energy Department, U.S. crude inventories rose more than expected, up 7.4 million barrels to 319.2 million barrels in the week ended 28 March against an anticipation of increase by more than 2 million barrels. Refineries operated at 82.4% of their operable capacity last week, up slightly from the previous week's 82.2%.
EIA also reported that gasoline supplies fell by 4.5 million barrels in the latest week, while distillate stocks fell by 1.6 million barrels. U.S. crude-oil imports averaged about 10.3 million barrels per day last week, up nearly 1.4 million barrels per day from the previous week.
In the currency market today, the dollar index, which tracks the performance of the U.S. currency against other major currencies, was last down 0.25%. The dollar had firmed earlier after the ADP employment report showed that private sector jobs rose by 8,000 in March. But then it fell in the course of the day. In testimony to Congress, Bernanke said that the outlook for U.S. economic growth has worsened since January and that the possibility of a recession can't be ruled out.
Crude prices are denominated in dollars and tend to rise when the greenback falls, as a weaker U.S. currency makes crude less expensive to buyers holding other currencies. It also eats into oil producers' dollar-denominated revenues, putting them under pressure to raise prices.
Brent crude oil for May settlement today rose $3.58 (3.6%) to $103.75 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.
Gasoline futures rise to record highs as inventories slip
Natural gas in New York advanced on speculation stockpiles fell more than expected for this time of year and as crude oil rose. Natural gas for May delivery rose 10.8 cents ( 1.1%) to settle at $9.832 per million British thermal units.
Against this backdrop, May reformulated gasoline gained 13.44 cents to $2.7736 a gallon and May heating oil rose 7.13 cents to $2.951 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 4,114/barrel, higher by Rs 58 (1.4%) against previous day’s close. Natural gas for April delivery closed at Rs 395/mmtbu, lower by Rs 1.8/mmtbu (0.45%).
Nifty April 2008 futures at discount
Turnover in F&O segment declines
Nifty April 2008 futures were at 4741.15, at a discount of 13.05 points as compared to spot closing of 4754.20.
The NSE's futures & options (F&O) segment turnover was Rs 34,170.35 crore, which was lower than Rs 35,886.84 crore on Tuesday, 1 April 2008.
Suzlon Energy April 2008 futures were at discount at 283 compared to the spot closing of 285.15.
Steel Authority of India April 2008 futures were near spot price at 167.75 compared to the spot closing of 167.90.
DLF April 2008 futures were near spot price at 620.10 compared to the spot closing of 619.55.
In the cash market, the S&P CNX Nifty gained 14.65 points or 0.31% at 4754.20.
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