India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Friday, May 02, 2008
NSE Bulk Deal Watch - May 2 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
02-MAY-2008,AZTECSOFT,Aztecsoft Limited,J KISHORE KUMAR,BUY,470000,77.35,-
02-MAY-2008,CHI,CHI Investments Limited,MERRILL LYNCH CAPITAL MARKETS ESPANA S A SVB,BUY,90000,77.88,-
02-MAY-2008,KAUSHALYA,Kaushalya Infrastructure,ANKUR-CHOPRA,BUY,105264,43.15,-
02-MAY-2008,ORCHIDCHEM,Orchid Chemicals Ltd.,SERUM INSTITUTE OF INDIA LTD,BUY,631183,249.01,-
02-MAY-2008,ROHITFERRO,Rohit Ferro-Tech Limited,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,BUY,223212,106.39,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,ADROIT FINANCIAL SERVICES PVT LTD,BUY,200290,54.10,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,CPR CAPITAL SERVICES LTD.,BUY,117632,53.68,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,DIPAK RAMANBHAI RATHOD,BUY,222401,53.17,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,TRANSGLOBAL SECURITIES LTD.,BUY,196272,54.36,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,V J PATEL INVESTMENT,BUY,10000,54.57,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,VAJSHAH SHARES & CONSULTANCY P,BUY,6107,52.10,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,VICKY RAJESH JHAVERI ,BUY,112926,53.86,-
02-MAY-2008,TWL,Titagarh Wagons Limited,B K SHAH CO KETAN BHAILAL SHAH,BUY,150299,818.90,-
02-MAY-2008,AZTECSOFT,Aztecsoft Limited,KARE ELECTRONICS AND DEVELOPMENTS (P) LTD,SELL,490586,77.45,-
02-MAY-2008,KAUSHALYA,Kaushalya Infrastructure,ANKUR-CHOPRA,SELL,73500,43.46,-
02-MAY-2008,PFOCUS,Prime Focus Limited,BANG SECURITIES PVT. LTD.,SELL,64258,675.00,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,ADROIT FINANCIAL SERVICES PVT LTD,SELL,200290,54.47,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,ATULBHAI G. VAJA,SELL,259622,52.18,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,CPR CAPITAL SERVICES LTD.,SELL,120749,53.77,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,DIPAK RAMANBHAI RATHOD,SELL,248811,52.97,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,GOPAL TRADERS,SELL,131840,54.53,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,TRANSGLOBAL SECURITIES LTD.,SELL,196272,55.03,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,V J PATEL INVESTMENT,SELL,178745,53.30,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,VAJSHAH SHARES & CONSULTANCY P,SELL,168025,53.29,-
02-MAY-2008,SITASHREE,Sita Shree Food Products,VICKY RAJESH JHAVERI ,SELL,112926,55.12,-
02-MAY-2008,TWL,Titagarh Wagons Limited,B K SHAH CO KETAN BHAILAL SHAH,SELL,150299,821.17,-
BSE Bulk Deals to Watch - May 2 2008
Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
2/5/2008 517356 ACI INFOCOM ALKESH M. GOPANI B 48500 5.31
2/5/2008 517356 ACI INFOCOM DIVYA GUPTA S 99800 5.33
2/5/2008 526179 AEKTA LIMITE CHARAIVETI VYAPAAR PVT LTD B 903282 21.95
2/5/2008 526179 AEKTA LIMITE JETAGE FINANCE PVT LTD. S 900000 21.95
2/5/2008 504629 ANIL SP STEL SHEETAL RAJESH JAIN S 53750 26.71
2/5/2008 532946 BANG MARUTI SECURITIES LTD B 69463 218.88
2/5/2008 590059 BIHAR TUBES HARDIK M MITHANI B 31991 153.39
2/5/2008 590059 BIHAR TUBES SPJ STOCK B 109551 153.15
2/5/2008 590059 BIHAR TUBES SPJ STOCK S 109551 153.80
2/5/2008 532813 C & C CONSTR HDFC MUTUAL FUND AC GROWTH FUND B 135846 210.00
2/5/2008 532813 C & C CONSTR UBS SEC ASIA LTD SWISS FIN CORP LTD S 135992 210.00
2/5/2008 512018 CNI RES LTD MUVIN INFOTECH LTD S 200000 9.60
2/5/2008 532271 CYBERMAT INF PRITIRAJ STOCK BROKING PVT LTD B 400000 7.13
2/5/2008 505710 GRAUER WEIL SAROJNI FINANCE AND INVESTMENT P LTD B 70000 115.44
2/5/2008 532821 INDUSFILA KUNDAN LEASING AND FINVEST PVT. LTD B 100000 113.85
2/5/2008 530985 JPTSECURITII ARPIT MUNDRA S 25000 39.50
2/5/2008 530985 JPTSECURITII SONAL JIGNESH TALATI S 180001 40.03
2/5/2008 532283 KASHYAP TEC OM EDUCATION IT PVT. LTD. B 1887080 2.00
2/5/2008 522235 MINAL ENGINE SHRIKANT JESINGBHAI PARIKH S 148156 20.49
2/5/2008 531096 MOUNT EVE MI ARISAIG INDIA FUND LTD B 1280610 156.47
2/5/2008 531096 MOUNT EVE MI RDM FAMILY TRUST S 300000 156.50
2/5/2008 531096 MOUNT EVE MI WEARIT GLOBAL LTD S 150000 156.50
2/5/2008 531096 MOUNT EVE MI MANISH KUMAR S 145680 156.50
2/5/2008 532504 NAVIN FLUORI GOLDMAN SACHS INVESTMENT MAURITIUS 1 LIMITED AC SHORT TERM S 78900 252.37
2/5/2008 506618 PUNJAB CHEM JITENDRA MEHTA B 37500 218.03
2/5/2008 506618 PUNJAB CHEM SPJ STOCK B 25103 207.98
2/5/2008 506618 PUNJAB CHEM SPJ STOCK S 25103 214.48
2/5/2008 517522 RAJ GLO WIR UMESH PURUSHOTTAM CHAMDIA B 25000 53.50
2/5/2008 532961 SITA SHREE N D NISSAR B 181651 54.09
2/5/2008 532961 SITA SHREE N D NISSAR S 181651 54.10
2/5/2008 530735 SUPER BAKE I SUMIT JAGDISHCHANDRA AGRAWAL B 20000 5.00
2/5/2008 530735 SUPER BAKE I PRAKASH P NAKHAWA S 18100 5.00
2/5/2008 532966 TITAGARH WAG B K SHAH CO B 149091 813.61
2/5/2008 532966 TITAGARH WAG B K SHAH CO S 149091 813.80
Sensex ends firm at 17,600
The Market remained buoyant on strong FII inflows and lifted the Sensex past the 17,600 mark. Resuming on a positive note at 11,384, 273 points above its previous close of 17,287, the Sensex advanced further and surged past the 17,600 mark in the afternoon. A positive close in most of the Asian indices with gains of over 2% each triggered a major rally in heavyweight, bankex, auto and realty stocks that helped the index surge to an intra-day high of 17,621. The Sensex finally closed with gains of 313 points at 17,600, while the Nifty added 62 points to close at 5,228.
The breadth of the market was positive. Of the 2,767 stocks traded on the BSE, 1,396 stocks advanced, 1,300 stocks declined and 71 stocks ended unchanged. Among the sectoral indices, the BSE Bankex index gained 3.66% followed by BSE Auto index, which was up 2.86%, BSE Realty index was up by 2.51%, BSE IT index rose up by 2.27% and BSE CG index surged up by 2.25%. BSE Power jumped by 1.92%, BSE Oil & Gas index moved up by 1.82%, BSE PSU moved up 1.13% and BSE Teck index was up by 1.00%. BSE CD index, BSE FMCG index and BSE HC index also ended the day in positive territory. However BSE Metal index ended the day in red and was down by 1.56%.
Leading the upsurge in the Sensex, Reliance Energy soared by 6.85% at Rs1,523.30. ICICI Bank advanced 6.38% at Rs935.50, Maruti rose 6.21% at Rs788, Jaiprakash advanced 5.77% at Rs286.95, L&T added 4.58% at Rs3,141.05, Tata Motors jumped 4.27% at Rs690.45 and Mahindra & Mahindra gained 2.98% at Rs690.35. Wipro advanced 2.78% at Rs502.20, State Bank of India rose 2.58% at Rs1,822.15, Satyam Computer Services advanced 2.47% at Rs494.10, TCS added 2.31% at Rs940.75, RIL jumped 2.29% at Rs2,674.85, DLF gained 2.11 % at Rs720.12, Infosys scaled up 2.04% at Rs1,789.50, NTPC moved up by 2.01% at Rs200.70 and HDFC Bank was up 1.59% at Rs1,538.95. However, Hindalco dropped 4% at Rs185.85, Reliance Communications was down by 3.20% at Rs561.20, while Tata Steel, Grasim, HDFC, Ambuja Cement, ACC, Cipla, Bharti Airtel and HUL also ended at lower levels.
Banks stocks rallied sharply. Federal Bank was among the major gainers and was up by 5.54% at Rs253.55, Bank of India surged 5.27% at Rs360.70, Kotak Bank soared 4.10% at Rs821.70, Karnataka Bank advanced 3.91% at Rs209.90, Indian Overseas jumped 3.14% at Rs152.85 and Allahabad Bank closed stronger by 3.08% at Rs87.05, SBI, Yes Bank, Union Bank, Centurion Bank of Punjab, Canara Bank, HDFC Bank, Bank of Baroda and Andhara Bank were up by 1% each. However Punjab National Bank ended the day in red and was down by 1.74% at Rs541.30.
On the volume front, over 2.66 crore IFCI shares changed hands on the BSE followed by ISPAT Industries (1.24 crore shares), RNRL (1.13 crore shares), Kashyap (0.73 lakh shares) and Idea Cellular (0.69 lakh shares).
Post Session Commentary - May 2 2008
The Indian Market closed with handsome gains backed by heavy buying across the sectoral indices. The market opened with a bang tracking the favoring cues from he global markets but pared some of its gains towards the mid of the session but gathered the momentum after that to close on a strong note. Despite of high inflation figures in which the India''s wholesale price index grew 7.57% in 12 months to 19 April 2008, from the previous week''s annual rise of 7.33%, the investors showed more buying interest to book their positions. The market breadth was strong as 1400 stocks closed in green while 1301 stocks closed in red.
The BSE Sensex closed higher by 312.81 points at 17,600.12 and NSE Nifty closed up by 62.3 points at 5,228.20. The BSE Mid Caps and Small Cap grew by 98.73 points and 48.14 points to close at 7,237.47 and 8,821.71 respectively.
The Bankex index surged 322.50 points to close at 9,142.18. Scrips that gained are ICICI bank (6.38%), Federal bank (5.54%), BOI (5.27%), Kotak bank (4.10%), IOB (3.14%), Allahabad bank (3.08%), SBI (2.58%) and Yes bank (2.47%).
The Capital Goods index grew by 313.62 points at 14,244.87. Major gainers are L&T (4.58%), Praj inds (3.42%), Punj Lloyd (2.96%), Lakshmi Machines (1.85%), Siemens (1.11%), Kalpataru Power (1.08%), BEML (0.61%).
The Realty index closed up by 213.20 points at 8,718.69. Gainers are HDIL (9.59%), Ansal Infra (4%), Indbul Real (3.27%), Unitech (2.50%), DLF (2.11%), Parsvnath (1.72%), Sobha Dev (1.36%), Penland (1.25%).
The Metal index closed lower by 251.23 points at 15,863.17. Losers are Sterlite inds (4.24%), Hindalco inds (4%), Tata Steel (2.52%), Nalco (2.42%), Jindal Stainless (1.71%), Gujarat NRE (1.07%) and SAIL (1%).
The Oil & Gas index advanced by 209.58 points to close at 11,715.37 as IOCL (4.25%), Aban Offshore (2.99%), HPCL (2.57%), Reliance inds (2.29%), RNRL (2.17%), Essar Oil (1.64%), Gail India (1.41%) and Cairn India (1.06%).
Fourth straight weekly gain for Sensex
The market clocked gains for a fourth straight week in the week ended Friday, 2 May 2008, tracking firm global markets and on the back of good Q4 March 2008 results. Both the benchmark indices - BSE Sensex and S&P CNX Nifty settled above key levels of 17,600 and 5,200
Asian stocks edged higher, sending the region's benchmark index to its highest in more than three months, on speculation global credit-market turmoil will ease.
Aggregate results of 988 companies showed 17.10% rise in net profit on 21.60% rise in net sales in Q4 March 2008 over Q4 March 2007, so far. There was 27.30% rise in net profit on 23.40% rise in net sales in the year ended March 2008 over year ended March 2007.
The 30-share BSE Sensex gained 474.14 points or 2.76% to 17,600.12, in the week ended Friday, 2 May 2008. The S&P CNX Nifty rose 116.50 points or 2.27% to 5228.20, in the week.
The BSE Mid-Cap index rose 181.26 points or 2.56% to 7,237.47 in the week, outperforming the Sensex. The BSE Small-Cap index rose 93.99 points or 1.07% to 8,821.71 in the week, underperforming the Sensex.
In the calendar 2008, foreign institutional investors were net sellers of shares to the tune of Rs 10,358 crore (till 29 April 2008).
Trading for the week started on a weak note as investors turned cautious ahead of central bank’s monetary policy meet on 29 April 2008. The 30-share BSE Sensex lost 110.02 points or 0.64% to 17,015.96 and the broader based S&P CNX Nifty was down 22.05 points or 0.43% at 5,089.65, on 28 April 2008.
The market advanced on 29 April 2008 after the central bank kept interest rates unchanged. The 30-share BSE Sensex jumped 362.50 points or 2.13% at 17,378.46 and the broader based S&P CNX Nifty was up 105.85 points or 2.08% at 5,195.50 on that day.
The 30-share BSE Sensex shed 91.15 points or 0.52% at 17,287.31 and the broader based S&P CNX Nifty lost 29.6 points or 0.57% at 5,165.90 on 30 April 2008 as traders booked profit ahead of the outcome of the US Federal Reserve's policy meeting later in the day. Markets were shut on 1 May 2008 on account of Maharashtra day.
On 2 May 2008, the market posted gains despite the latest data showing a rise in inflation to highest level in more than three years. Firm global markets supported domestic bourses, with the Sensex scaling 2-month high. The 30-share BSE Sensex advanced 312.81 points or 1.81% at 17,600.12 and the broader based S&P CNX Nifty rose 62.30 points or 1.21% at 5,228.20 on that day.
Software stocks rallied after Finance Minister Palaniappan Chidambaram extended by a year a tax holiday scheme for export-driven software companies as he outlined some changes to the federal budget for 2008-09. The scheme for facilities based in technology parks was set to expire in March 2009.
India's second largest software exporter by sales Infosys Technologies surged 6.11% at Rs 1789.50 in the week. India’s largest software services exporter TCS rose 5.73% to Rs 940.75 in the week.
Wipro (up 7.72% to Rs 502.20), Satyam Computer Services (up 11.13% to Rs 494.10), i-flex Solutions (up 6.71% to Rs 1421.50), HLC Technologies (up 13.27% to Rs 296.10), and Tech Mahindra (up 17.13% to Rs 950.65), advanced.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) was up 1.92% of Rs 2674.85 in the week. The company said it had signed an agreement to buy a 90% stake in an exploration block in Peru.
India’s largest commercial bank State Bank of India vaulted 4.12% to Rs 1822.15 in the week. The bank reported 26% rise in net profit to Rs 1883 crore in Q4 March 2008 over Q4 March 2007. The results hit the market at the fag end of the trading session on Friday, 2 May 2008.
India's top small car maker in terms of sales Maruti Suzuki India settled 6.88% higher to Rs 788 in the week. The company's sales rose 22.4% to 59,539 units in the domestic market compared in April 2008 over April 2007. The company's exports grew 64.5% during the month compared with the year-ago period.
India’s largest dedicated housing finance firm by operating income Housing Development Finance Corporation gained 2.96% to Rs 2773.75 in the week. The company’s net profit rose 39.64% to Rs 768.12 crore on 33.82% rise in total income to Rs 2,320.21 crore in Q4 March 2008 over Q4 March 2007.
India’s largest telecom services provider by sales Reliance Communications slipped 2.75% to Rs 561.20 in the week. The company’s consolidated net profit rose 70.5% to Rs 5401.14 crore on 31.79% rise in total income to Rs 19067.76 crore in the year ended March 2008 over the year ended March 2007.
India’s largest tractor maker by sales Mahindra & Mahindra surged 8.59% to Rs 690.35 in the week. The board of Mahindra & Mahindra will meet on Saturday, 3 May 2008 to consider a proposal for a private placement of securities.
The US Federal Reserve on Wednesday, 30 April 2008, cut Fed Funds rate by 25 basis points to 2% and hinted at a pause in its recent campaign to lower borrowing costs.
India's wholesale price index rose 7.57% in 12 months to 19 April 2008, accelerating from the previous week's annual rise of 7.33%, government data released on 2 May 2008 showed. The rate was the highest since a reading of 7.68% on 13 November 2004.
Finance Minister (FM) P Chidambaram on Thursday, 1 May 2008, said state-run banks are unlikely to hike interest rates in the near future. FM said banks were quite happy that only the CRR (cash reserve ratio) has been raised by the Reserve Bank of India and policy rates have been untouched. RBI on Tuesday, 29 April 2008, hike CRR by 25 basis points to 8.25% in its annual monetary policy review.
Sensex up 2,791 points from recent low
The market extended gains with the barometer index BSE Sensex surging 313 points, and finishing close to the day’s high. It held firm despite the latest data showing a rise in inflation to highest level in more than three years. Firm global markets supported domestic bourses.
Gains in banking, realty, IT, capital goods, and auto stocks powered today's rally on the bourses. Except BSE Metal index all the sectoral indices on BSE were trading in green. Metal stocks declined as global base metal prices retreated. The market breadth was positive.
European markets which opened after Indian market, were strong. Asian markets which opened before Indian market, were firm. US stocks rose on Thursday, 1 May 2008, as a rebound in the dollar and retreating oil prices calmed fears about inflation, renewing investors' appetite for riskier assets, including undervalued technology shares.
India's wholesale price index rose 7.57% in 12 months to 19 April 2008, accelerating from the previous week's annual rise of 7.33%, government data released today showed. The rate was the highest since a reading of 7.68% on 13 November 2004.
The 30-share BSE Sensex ended up 312.81 points or 1.81% at 17,600.12. The market had pared gains in mid-morning trade after a strong start ahead of the inflation data. It had surged in early trade on positive cues from global equities. Sensex hit a high of 17,621.24 in early trade, its highest level since 29 February 2008. At the day’s high, Sensex rose 333.93 points. Sensex was up 158.62 points at the day's low of 17,445.93 hit in mid-morning trade.
The broader based S&P CNX Nifty was up 62.3 points or 1.21% at 5,228.20. Nifty May 2008 futures were at 5253, at a premium of 24.80 points as compared to spot closing of 5228.20.
The BSE clocked a turnover of Rs 6549 crore today compared to a turnover of Rs 6909.57 crore on Wednesday, 30 April 2008. The market was closed on Thursday, 1 May 2008, for a public holiday.
The NSE's futures & options (F&O) segment turnover was Rs 36,304.41 crore, which was higher than Rs 33,950.04 crore on Wednesday, 30 April 2008.
The market breadth was positive with 1,400 shares advancing as compared to 1301 that declined on BSE. 67 remained unchanged.
As per the provisional figures on NSE, foreign institutional investors (FII)s bought shares worth Rs 658.34 crore today while domestic funds sold shares worth Rs 18 crore.
The BSE Mid-Cap index rose 1.38% to 7,237.47 and BSE Small-Cap index rose 0.55% to 8,821.71.
BSE Oil & Gas index (up 1.82% to 11,715.37), BSE Power index (up 1.92% to 3,402.99), BSE Capital Goods index (up 2.25% to 14,244.87), BSE IT index (up 2.27% to 4,358.58), BSE Realty index (up 2.51% to 8,718.69), BSE Auto index (up 2.86% to 4,861.15), BSE Bankex (up 3.66% to 9,142.18), outperformed Sensex.
BSE PSU index (up 1.13% to 8,173.01), BSE Consumer Durables index (up 0.57% to 4,568.85), BSE FMCG index (up 0.53% to 2,474.45), BSE HealthCare index (up 0.33% to 4,289.31), BSE Metal index (down 1.56% to 15,863.17) underperformed Sensex.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 2.29% to Rs 2,674.85 after the company said it had signed an agreement to buy a 90% stake in an exploration block in Peru.
Banking stocks rose across the board despite surge in inflation. HDFC Bank (up rose 1.59% to Rs 1,538.95), ICICI Bank (up 6.38% to Rs 935.50) edged higher.
India’s largest commercial bank State Bank of India rose 2.58% to Rs 1,822.15. The bank today reported 26% rise in net profit to Rs 1883 crore in Q4 March 2008 over Q4 March 2007. The results hit the market at the fag end of the trading session.
Bank of India rose 5.27% to Rs 360.70 after it posted 70% rise in net profit to Rs 757 crore in Q4 March 2008 over Q4 March 2007.
Finance Minister (FM) P Chidambaram on Thursday, 1 May 2008, said state-run banks are unlikely to hike interest rates in the near future. FM said banks were quite happy that only the CRR (cash reserve ratio) has been raised by the Reserve Bank of India and policy rates have been untouched. RBI on Tuesday, 29 April 2008, hike CRR by 25 basis points to 8.25% in its annual monetary policy review.
Auto stock rose on strong monthly sales. India’s largest car maker by sales Maruti Suzuki India rose 6.21% to Rs 788. Maruti Suzuki India has recorded a 22.4% growth in domestic sales in April 2008 compared with April 2007. The company's exports grew 64.5% during the month compared with the year-ago period. In April Maruti Suzuki sold 59,539 units in the domestic market compared with 48,652 units in April 2007.
Bajaj Holdings rose 3.51% to Rs 734.10. Erstwhile Bajaj Auto reported a 23.60% growth in motorcycle sales during April 2008 at 2,03,081 units against 1,64,304 units in the same month last year. The company's total two-wheeler sales also rose 23.08% during the month at 2,03,930 units as compared to 1,65,692 units in April last year.
India’s largest motorbike maker by sales Hero Honda Motors declined 0.36% to Rs 847.65. Hero Honda Motors reported a 9.03% jump in motorcycle sales during April 2008 at 2,86,252 units against 2,62,544 units in the same month last year.
India’s largest tractor maker by sales Mahindra & Mahindra rose 2.98% to Rs 690.35 on reports the company is exploring buying stake in Pune-based two-wheeler maker Kinetic Motor. India’s largest truck maker by sales Tata Motors rose 3.68% to Rs 685.05.
Realty stocks rose. Housing Development and Infrastructure (up 9.59% to Rs 846), Indiabulls Real Estate (up 3.27% to Rs 565.65) and Unitech (up 2.5% to Rs 318.15) edged higher.
India’s largest real estate player by market capitalisation DLF rose 2.11% to Rs 720.15. DLF reported a net profit of Rs 638.55 crore on a sales of Rs 1613.32 crore in Q4 March 2008.
Capital goods stocks rose. Larsen & Toubro (up 4.58% to Rs 3,141.05), Bharat Heavy Electricals (up 0.65% to Rs 1,909.25), Suzlon Energy (up 0.63% to Rs 288.95) edged higher.
IT stocks rose. Wipro (up 2.78% to Rs 502.20), Tata Consultancy Services (up 2.31% to Rs 940.75), Satyam Computer services (up 2.47% to Rs 494.10) and Infosys (up 2.04% t o Rs 1,789.50) edged higher.
Metal stocks declined as global base metal prices retreated. Sterlite Industries (down 4.24% to Rs 825.60), Hindalco Industries (down 4% to Rs 185.85) and Tata Steel (down 2.52% to Rs 797) National aluminium Company (down 2.42% to Rs 438.40) and Steel Authority of India (down 1% to Rs 183.20) edged lower.
Jaiprakash Associates (up 5.77% to Rs 286.95), ONGC (up 0.56% to Rs 1,039.20), ITC (up 0.43% to Rs 220.75) edged higher from Sensex pack.
HDFC (down 1.11% to Rs 2,773.75), ACC (down 0.67% to Rs 753.55), Ambuja Cement (down 0.88% to Rs 112.90) edged lower from Sensex pack.
India’s largest telecom services provider by sales Reliance Communications declined 3.2% to Rs 561.20. Reliance Communications is reportedly looking to bid for South African telecom major MTN. Reliance Communications is talking to leading global banks to raise resources and be ready, in case MTN's management decides to invite bids, the reports added.
IFCI clocked the highest volume of 2.66 crore shares on BSE. Ispat Industries (1.4 crore shares), Reliance Natural Resources (1.13 crore shares), Kaashyap Technologies (73.28 lakh shares) and Idea Cellular (69.66 lakh shares) were the other volume toppers in that order.
Titagarh Wagons clocked the highest turnover of Rs 225.72 crore on BSE. Housing Development and Infrastructure (Rs 219.37 crore), Reliance Infrastructure (Rs 192.15 crore), Reliance Communications (Rs 186.63 crore) and Reliance Capital (Rs 176.91 crore) were the other turnover toppers in that order.
The Dow Jones industrial average shot up 189.87 points, or 1.48 percent, to 13,010 on Thursday, 1 May 2008. The Standard & Poor's 500 Index surged 23.75 points, or 1.71 percent, to 1,409.34. The Nasdaq Composite Index climbed 67.91 points, or 2.81 percent, to 2,480.71.
All these three major indexes closed at the highest level since the first half of January 2008 as equities extended a rally started in mid-March 2008 on optimism that credit markets and the economy have begun to stabilize.
European markets opened strong. France’s CAC 40, Germany’s DAX and UK’s FTSE 100 were up by between 1.02% to 1.19%.
In Asia, key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were up by between 0.49% to 2.53%. China's markets remained shut for its two-day Labour Day holiday and will resume trading on Monday, 5 May 2008.
Earlier, the US Federal Reserve on Wednesday, 30 April 2008, cut Fed Funds rate by 25 basis points to 2% and hinted at a pause in its recent campaign to lower borrowing costs.
Inflation remains the biggest concern for the Indian stock market. The measures taken by the Union government to control inflation have also added to uncertainty on corporate profit. Finance Minister P Chidambaram on Tuesday, 29 April 2008, said government will impose export tax on basmati rice and some steel products, and cut import duties on key inputs like ferro alloys and metallurgical coke. He said the measures were being taken to improve domestic supplies and to moderate prices. The government has already banned export of cement and non-basmati rice.
Given that parliamentary elections are scheduled next year (in May 2009), the government may leave no stone unturned in its attempt to rein in inflation. This is bad news for commodity scrips like cement, steel etc.
In a bid to rein in inflation, the Reserve Bank of India, on Tuesday, 29 April 2008, raised cash reserve ratio (CRR) by 25 basis points to 8.25%, to suck out excess liquidity in the banking system, in its annual monetary policy review. While the central bank has mentioned price stability as its key priority, the overall undertone of the policy is not as hawkish as market had feared. That in turn boosted the bourses with Sensex jumping 362.50 points or 2.13% on that day (29 April 2008) to settle at 17,378.46. The RBI governor Y V Reddy expects inflation to moderate in the next 2-3 months.
Good Q4 results March 2008 results and firm global markets, triggered a solid rebound in the Indian market over the past few days. Buying by domestic institutions has supported the market. From a recent low of 14,809.49 on 17 March 2008, the Sensex has climbed 2,790.63 points or 18.84%. However, it is still 3,606.65 points or 17% off from a record high of 21,206.77 hit on 10 January 2008.
The structural growth drivers of the Indian economy remain intact – India’s economy is expected to witness a decent-to-strong growth for a long period of time due to favourable demographics. Acceleration in infrastructure creation will be another driver of strong growth in India’s economy. Rating agency CRISIL in its latest outlook for Indian economy for the year through March 2009 has stated that the overall growth scenario is expected to remain strong with investment as the main driver.
Another pointer to the fact that the long term India growth story remains intact is the outcome of the latest 2008 US-India Business Council (USIBC) survey, according to which, India is, and will continue to be, a premier destination for investment by US firms, with a large number of respondents rating future economic growth in India as highly sustainable.
Global cues to dictate near term trend
Local market are expected to take cue from the global markets in the near term as earnings season has almost come to an end with majority of frontline companies having already declared their results.
Corporate results have been good. Aggregate results of 988 companies showed 17.10% rise in net profit on 21.60% rise in net sales in Q4 March 2008 over Q4 March 2007, so far. There was 27.30% rise in net profit on 23.40% rise in net sales in the year ended March 2008 over year ended March 2007.
i-flex Solutions, Century Textiles, JSW Steel, Union Bank of India and Ashok Leyland among others are the key results to watched out for during the forthcoming week
Markets across the globe have managed to stage a sharp pullback from lows hit in mid January 2008 on hopes the global credit-market turmoil will ease. The benchmark index BSE Sensex has risen 2,790.63 points or 18.84% from its low of 14,809.49 touched on 17 March 2008. However, it is still 3,606.65 points or 17% away from its all time high of 21,206.77 hit on 10 January 2008.
The market extended gains for the fourth straight week in the week ended Friday, 2 May 2008, tracking firm global markets. The 30-share BSE Sensex gained 474.14 points or 2.76% to 17,600.12, in the week ended. The S&P CNX Nifty rose 116.50 points or 2.27% to 5228.20, in the week.
Inflation remains the biggest concern for the Indian stock market. The measures taken by the Union government to control inflation have also added to uncertainty on corporate profit. Finance Minister P Chidambaram on Tuesday, 29 April 2008, said government will impose export tax on basmati rice and some steel products, and cut import duties on key inputs like ferro alloys and metallurgical coke. He said the measures were being taken to improve domestic supplies and to moderate prices. The government has already banned export of cement and non-basmati rice.
Given that parliamentary elections are scheduled next year (in May 2009), the government may leave no stone unturned in its attempt to rein in inflation.
The structural growth drivers of the Indian economy remain intact – India’s economy is expected to witness a decent-to-strong growth for a long period of time due to favourable demographics. Acceleration in infrastructure creation will be another driver of strong growth in India’s economy. Rating agency CRISIL in its latest outlook for Indian economy for the year through March 2009 has stated that the overall growth scenario is expected to remain strong with investment as the main driver.
Pre Session Commentary - May 2 2008
The Indian Market is likely to have a positive opening due to favoring cues from the global markets. On Wednesday, the Indian market closed in the negative territory as the profit booking took a lead in a volatile trading session. The market was unable to sustain at higher level after a firm start and fell to pare all its initial gains. A holiday yesterday due to the celebration of Maharastra Day tomorrow and the US Federal Reserve Policy meeting scheduled to be held later on the day led the investors to take calculated steps to clear up their positions. The market breadth was weak as 1397 stocks closed in red while 1296 stocks closed in green. The BSE Sensex closed lower by 91.15 points at 17,287.31 and NSE Nifty fell by 29.6 points to close at 5,165.90. We expect that the market may see some bull run during the trading session. Also, the declaration of the inflation figure by the government in the afternoon will give some further direction to the market.
The US Federal Reserve has cut the discount rate and the Fed funds rate by a quarter basis point to 2.5% and 2% respectively and this is the seventh straight cut since September 2007.
On Thursday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 189.87 points at 13,010 along with S&P 500 grew by 23.75 points to close at 1,409.34 and NASDAQ closed up by 67.91 points at 2,480.71.
Today the major stock markets in Asia are trading firm. Hang Seng is trading higher by 554.65 points at 26,310 along with Japan’s Nikkei trading up by 247.54 at 14,014.40 and Taiwan Weighted trading at 8,984.34 up by 64.42 points.
Today, Nifty has support at 5,080 and resistance at 5,298 and BSE Sensex has support at 17,342 and resistance at 17,791
Market to extend gains; inflation data eyed
The market which has witnessed a solid surge over the past few days is set to extend the rally on positive cues from global equities and with latest batch of corporate results coming in strong. Data showing top auto firms reporting strong sales in April 2008 may also lift sentiment. On Wednesday, 30 April 2008, Reliance Communications and HDFC reported strong Q4 March 2008 results. The results were announced during trading hours on that day.
US stocks rose on Thursday, 1 May 2008, as a rebound in the dollar and retreating oil prices calmed fears about inflation, renewing investors' appetite for riskier assets, including undervalued technology shares. The Dow Jones industrial average shot up 189.87 points, or 1.48 percent, to 13,010.00. The Standard & Poor's 500 Index surged 23.75 points, or 1.71 percent, to 1,409.34. The Nasdaq Composite Index climbed 67.91 points, or 2.81 percent, to 2,480.71.
All these three major indexes closed at the highest level since the first half of January 2008 as equities extended a rally started in mid-March 2008 on optimism that credit markets and the economy have begun to stabilize.
In Asia, key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were up by between 0.4% to 2.3%.
Earlier, the US Federal Reserve on Wednesday, 30 April 2008, cut Fed Funds rate by 25 basis points to 2% and hinted at a pause in its recent campaign to lower borrowing costs.
Back home, data on inflation for the year through 19 April 2008 will be released by the Indian government at 12:00 IST. Inflation remains the biggest concern for the Indian stock market. The measures taken by the Union government to control inflation have also added to uncertainty on corporate profit. Finance Minister P Chidambaram on Tuesday, 29 April 2008, said government will impose export tax on basmati rice and some steel products, and cut import duties on key inputs like ferro alloys and metallurgical coke. He said the measures were being taken to improve domestic supplies and to moderate prices. The government has already banned export of cement and non-basmati rice.
Given that parliamentary elections are scheduled next year (in May 2009), the government may leave no stone unturned in its attempt to rein in inflation. This is bad news for commodity scrips like cement, steel etc.
In a bid to rein in inflation, the Reserve Bank of India, on Tuesday, 29 April 2008, raised cash reserve ratio (CRR) by 25 basis points to 8.25%, to suck out excess liquidity in the banking system, in its annual monetary policy review. While the central bank has mentioned price stability as its key priority, the overall undertone of the policy is not as hawkish as market had feared. That in turn boosted the bourses with Sensex jumping 362.50 points or 2.13% on that day to settle at 17,378.46. The RBI governor Y V Reddy expects inflation to moderate in the next 2-3 months.
Good Q4 results March 2008 results and firm global markets, triggered a solid rebound in the Indian market over the past few days. Buying by domestic institutions has supported the market.
The structural growth drivers of the Indian economy remain intact – India’s economy is expected to witness a decent-to-strong growth for a long period of time due to favourable demographics. Rating agency CRISIL in its latest outlook for Indian economy for the year through March 2009 has stated that the overall growth scenario is expected to remain strong with investment as the main driver.
Another pointer to the fact that the long term India growth story remains intact is the outcome of the latest 2008 US-India Business Council (USIBC) survey, according to which, India is, and will continue to be, a premier destination for investment by US firms, with a large number of respondents rating future economic growth in India as highly sustainable.
Morning Call - May 2 2008
Market Grape Wine :
In House :
Nifty at a support of 5142 and 5102 with resistance 5232 and 5298 levels.
Cash :
Buy : Rajesh export above 93.70 TGT 99 with S/L 91.
Buy: Idfc above 177.50 TGT 185 with S/L 174.
Future :
Buy : Ansalinfra above 177 TGT 188 with S/L 172.
Buy : Acc below 770 TGT 790 with S/L 762.
Out House :
Markets at a support of 17017 & 16861 and resistance at 17591 & 17371 levels .
Buy : RPL & RPower
Buy : RNRL & RIL
Buy : LKP & S Kumar
Buy : Kotak
Buy : BombayDye
Buy : GujNRE
Buy : Coreproject
Buy : HDIL & Unitech
Buy : BEL
Dark Horse : Century , Kotak , HDIL, IBull , CORE, RIL , RPOWER & RPL
TGIF : Thank God Its Friday : Buy low sell High stay invested with strict stop loss .
US Market finally reacts to rate cut
Market witnesses a strong day with the Dow closing above the 13,000 mark for first time in four months
In a late reaction to Federal Reserve’s rate cut decision, US Market started and ended strongly today, Thursday, 01 May, 2008 after Dow closed above the 13,000 mark for the first time in four months. With the help of financial and technology sector, stocks rallied. Eight of the ten economic sectors advanced with energy and material sector being the sole laggards.
The market was up by 200 points at one point in the day. At the end, The Dow Jones industrial Average ended with a gain of 190 points at 13,010. The Nasdaq Composite Index, finished higher by 67.9 points at 2,480. S&P 500 finished higher by 23.7 points at 1,409.
Twenty-five out of thirty Dow components ended in the green today. American Express, Citigroup and Bank of America were the main Dow winners. Amex gained almost 7% while the other two stocks gained more than 4%.
Yesterday, the Federal Open Market Committee announced that it cut the fed funds and discount rates by 25 basis points. This left the fed funds rate at 2% and the discount rate at 2.25%. The Fed said economic activity remains weak, while inflation expectations are picking up.
Among the economic reports for the day, April's ISM Manufacturing survey posted a reading of 48.6, which was a bit above the 48 reading that was widely anticipated. But the interest fact about the data was that it was unchanged from the prior month, indicating that manufacturing conditions have not worsened. On the other hand, according to government data released today, construction spending for March slipped 1.1% month-over-month.
Initial jobless claims for the week ending 26 April came at 380,000 against an expected 365,000. Also, March's personal consumption expenditures, announced this morning, increased 0.4% in March, which is more than the expected 0.2% increase.
Crude prices dropped by almost a dollar today, as the dollar strengthened against its rivals. The same reduced the commodities’ appeal as a hedge against inflation. Prices also continued to slip for the third straight day after yesterday’s weekly inventory report by the Energy Department showed that crude supplies rose more than forecast. Crude-oil futures for light sweet crude for June delivery closed at $112.52/barrel (lower by $0.94/barrel or 0.8%) on the New York Mercantile Exchange. Earlier prices slipped to $110/barrel. For the year, crude is up by 16.8% till date.
In the currency market today, the dollar was solidly higher against most major rivals extending earlier gains after better-than-expected U.S. manufacturing data. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, rose 1% to 73.31.
Volume on the New York Stock Exchange neared 4.4 billion, and gaining stocks topped those declining more than 2 to 1. On the Nasdaq, nearly 2.3 billion shares traded hands, and advancers beat decliners by a more than 2 to 1 ratio.
For tomorrow, Department of Labor's monthly employment report will be the main report garnering attention. Separately, the March factory orders reading will also be released.
Trading Calls - May 2 2008
Nifty (5166) Supp 5115 Res 5270
Buy Aztecsoft (76) SL 73
Target 81, 84
Buy Divi's Labs (1501) SL 1480 Target 1540, 1560
Buy Cairn (248) SL 243
Target 258, 262
Buy TVS Motors (43) SL 41 Target 47, 49
Sell ACC (758) SL 763
Target 748, 745
May the good times continue
All you need in this life is ignorance and confidence; then success is sure.
Though the confidence is not yet set in but given the current positive momentum, the bulls are hoping that May does not add to the list of big crashes of this year. What's more, the global cues have been encouraging and remain so. In case you missed what happened in the US over the past couple of days, the Fed on Wednesday cut its key interest rate by a quarter of a percentage point to 2%. It is the seventh reduction in the federal funds rate since the central bank began fighting a credit squeeze in the second half of last year and the growing possibility of a recession.
The FOMC hinted that since the economic outlook has not worsened, it will probably not need to cut rates any more. Wall Street's initial reaction on Wednesday was mixed. Dow Jones Industrial Average, which was up by triple digits and topped 13,000, erased most of the gains. US stocks closed lower on Wednesday. However, after a slow start on Thursday, US stocks finished sharply higher as investors reckon that the Fed is essentially sending the message that the worst of the credit crisis is over, and not much downside is on the horizon.
Earlier on Wednesday, the US government reported that the world's biggest economy almost stalled in the first quarter of this year (growing 0.6%), but for an increase in business inventories and strong exports. The labour market weakened, the real estate market slumped and consumers too cut back on spending. Friday's focus will be on the April jobs report due out before the start of trade. US companies are expected to have cut 75,000 jobs from their payrolls after cutting 80,000 last month. The unemployment rate is expected to have risen to 5.2% from 5.1% the previous month.
Back home, the result season is almost done, though quite a few companies are still to announce their annual figures. There have been quite a few negative surprises as India Inc. is still facing a number of headwinds. This year will continue to be a challenging one for the Indian industry. Having said that, one can look forward to brighter days in the second half of the current fiscal and the next one, especially if the monsoon turns out to be good. Inflation is also likely to cool off over the next few months if oil and other commodity prices soften. Interest rates seem to have peaked out, and may remain stable (or perhaps even fall in some cases).
In short, the storm may have passed, and one may start harbouring hopes for better days ahead. Technically too, the charts are showing positive signs as the Nifty has surpassed the 200 DMA and remains above that. A major downside from this level may not happen, at least in the immediate future, unless there is some fresh bad news. Some market analysts see the Nifty gaining another 200 points, before the bulls face fresh resistance. Signs from the F&O segment are also not bad. Today, we expect a strong opening due to firm global markets. And, though inflation could rise further, the market may ignore the same.
FIIs were net sellers of Rs1.52bn (provisional) in the cash segment on Wednesday while the local institutions offloaded shares worth Rs385.8mn. In the F&O segment, foreign funds were net buyers of Rs5.59bn. On Tuesday, FIIs were net buyers of Rs3.45bn in the cash segment while Mutual Funds pumped in Rs3.82bn on the same day.
GE Shipping, Jyoti Structures, Pratibha Industries, United Phosphorus, NOCIL, Surana Industries and SBI will declare their results today. Tricom India will consider a stock split today.
Asian stocks are trading mostly higher this morning, sending the region's benchmark index to its steepest gain in almost two weeks, on speculation that turmoil in global credit markets will ease and as sales of cars and chips increased.
Mizuho Financial Group jumped after US Treasury Secretary Henry Paulson said the credit crisis is probably more than half over. Toyota Motor climbed after reporting US car sales increased for the first time in five months. Samsung Electronics led an advance by chipmakers after an industry group said semiconductor sales rose in the first quarter.
The MSCI Asia Pacific Index added 1.4% to 151.51 as of 12:03 p.m. in Tokyo, the biggest gain since April 21. About four stocks climbed for each that retreated, with a measure of finance stocks advancing the most among the index's 10 industry groups. The index is up 1.5% the past five days, set for its fifth winning week in six. Japan's Nikkei added 1.8% to 14,014.40. Benchmark indexes elsewhere advanced, except in the Philippines and Malaysia. China is closed for a holiday.
US stocks rose on Thursday to the highest level since January, buoyed by a rally in the dollar and better-than-estimated readings on manufacturing and consumer spending. A few strong technology earnings too prompted investors to dump commodities and buy shares of banks, retailers and computer companies.
Bank of America, JPMorgan Chase and Citigroup led financial stocks to a two-month high as the dollar rose 1.1% against the euro on speculation that the Fed is done cutting interest rates. Symantec surged the most in six years after the world's biggest maker of security software said fourth-quarter profit tripled, while Comcast posted its steepest rise since 2002 on new Internet-access subscribers.
The S &P 500 Index jumped 23.75 points, or 1.7%, to 1,409.34, its first close above 1,400 since January 14. The Dow advanced 189.87 points, or 1.5%, to 13,010, the first close above 13,000 since January 3. The Nasdaq Composite rose 67.91 points, or 2.8%, to 2,480.71.
Market breadth was positive on Wall Street. Three stocks rose for each that fell on the New York Stock Exchange.
US light crude oil for June delivery fell 94 cents to settle at $112.52 a barrel on the New York Mercantile Exchange. Meanwhile, the national average price for a gallon of regular unleaded gas hit an all-time record of $3.623, AAA reported.
COMEX gold for June delivery fell $14.20 to settle at $865.10 an ounce. Treasury prices slumped as investors pulled money out of the safe-haven buy, raising the yield on the benchmark 10-year note to 3.76% from 3.72% late on Thursday.
The dollar rose to the highest level in five weeks against the euro today. The dollar rose to $1.5466 against the euro at 4:14 p.m. in New York, from $1.5622 yesterday. It touched $1.5430, the strongest level since March 25. The dollar increased 0.5% to 104.38 yen, from 103.91.
The UK's FTSE 100 Index ended the slowest trading day of the year unchanged. The FTSE 100 Index ended unchanged at 6,087.3 as five stocks dropped for every four that rose. Some 580mn shares changed hands, half of yesterday's total and the fewest since Dec. 31.
Germany's DAX gained nearly 1% yesterday to 6,948.82 while the CAC in France was up 19 points at 4996.50.
In the emerging markets, the Bovespa in Brazil rallied 6.3% to 67,868 while the IPC index in Mexico ended almost flat at 30,281. The RTS index in Russia was down 0.2% at 2122 while the ISE National 30 index in Turkey slumped 2.3% to 53,107.
Fed, global trend to drive sentiment
After a positive start, which was in reaction to yesterday’s announcements by the RBI and the Finance Minister, markets turned range bound in the early afternoon trades. From thereon, the bulls could not maintain the buying tempo and chose to remain in the sidelines ahead of today’s Fed announcement.
FMCG stocks were seen leading in the late afternoon trades with upward movement seen in Nestle which gained by over 9% and Tata Tea and ITC which rose in the range of 3-4%.
Auto stocks also showed momentum with TVS Motor leading the sectoral rise by 11%, followed by M&M and Tata Motors.
However, the realty sector was seen lagging behind with a drop of 1.7%. Unitech, DLF and Peninsula Land were among the major laggards down in the range of 2-3%.
Finally, the BSE 30-share Sensex was down 119 points at 17,259 and NSE Nifty was down 30 points at 5,166.
M&M rose by over 4% to Rs670 after reports said that the company has planned an ultra low-cost rural tractor at a cost of around Rs0.2mn. The scrip touched an intra-day high of Rs678 and a low of Rs644 and recorded volumes of over 1, 00, 000 shares on BSE.
Satyam gained by over 0.5% to Rs482 after reports said that the company has entered into an agreement with Arcelor-Mittal for providing sub-contractor activities and help in overall business transformation. The scrip touched an intra-day high of Rs499 and a low of Rs470 and recorded volumes of over 21, 50, 000 shares on BSE.
Nalco fell by over 2% to Rs449. Reports said that Nalco and Tata are in talks to build a $3bn smelter in Africa. The scrip touched an intra-day high of Rs456 and a low of Rs430 and recorded volumes of over 90, 000 shares on BSE.
Cairn India dropped by over 4.5% to Rs248 following reports stating that the company which will start Bhagyam output in 2010, received approval to develop field with peak output of 40,000 barrels per day. The scrip touched an intra-day high of Rs263 and a low of Rs246 and recorded volumes of over 17, 00, 000 shares on BSE.
Reliance Industries reduced by over 1% to Rs2,614. According to reports, the company’s controlled gas field in KG basin will go on-stream by August 2008. The scrip touched an intra-day high of Rs2,674 and a low of Rs2,605 and recorded volumes of over 4, 50, 000 shares on BSE.
On account of the holiday on May 1, the Indian markets will not be able to react to the outcome of the Fed meet. While results will continue to pour in, the movement to a large extent will depend on how the global indices behave.
Corporate News
IOC sells oil bonds worth Rs22.8bn for meeting its resource requirements. (BL)
Small telecom companies cry foul over Bharti’s rate cut on roaming and STD calls. (ET)
Tata Teleservices crossed 3mn subscriber base in Delhi and NCR. (FE)
Reliance Petro is expected to recover its cost in the first 2.5 years of its operations. (FE)
Supreme Court asks Tata Tele and RCom to pay Rs7bn to BSNL. (BL)
BHEL and NTPC announced a JV to undertake equipment manufacturing and engineering procurement and construction (EPC) work for power projects. (BL)
Reliance Communications to broaden its business canvas by foraying into the IT sector. (BL)
Essar Group buys US steel maker and distributor Esmark a US based company for US$1.1mn. (ET)
ONGC strikes oil in Deccan traps. (ET)
ONGC plans to drill 162 wells in 2008-09. (FE)
IOC to buy naptha worth Rs14.9bn, the company has placed order for same. (FE)
Tata Power refinances bridge loan for acquisition of 30% in coal companies. (FE)
Dr Reddy's Laboratories has signed an agreement to acquire BASF's pharmaceutical contract manufacturing business. (BS)
L&T to hold 74% stake in JV with NHPC. (ET)
NTPC seeks ministries help to resolve supply issue with Bhel. (FE)
Cairn India has got the final approval from the petroleum ministry for laying a special pipeline to transport the crude oil from the field in Rajasthan to the Gujarat coast. (BS)
Zee eyeing German media companies entertainment business. (ET)
Tech Mahindra wins Billing and OSS World excellence award in the best billing solution category. (FE)
ONGC to pay US$1bn cess for Cairn’s crude oil. (ET)
SBI may partner Australian company IAG for non-life insurance. (ET)
Wipro’s Mr. P R Chandrasekar to join Hexaware as a CEO. (ET)
Mindtree set to buy Aztecsoft for Rs4bn. (BS)
Essar Oil plans a petrochem facility at its Vadinar refinery. (BL)
Mr R S Sharma takes over as a new Chairman and MD of NTPC. (BL)
DLF jointly with a Spanish builder has bid for US$4.7bn rail road contract in India. (DNA)
Ashok Leyland to invest Rs30bn on its new plant, coming up in Uttarakhand and on capacity expansion of its existing unit at Ennore. (BS)
Tata Tele to invest Rs1bn for expansion in Rajasthan. (ET)
M&M to foray into film production. (ET)
BHEL to increase its R&D spend to about Rs9bn over the next three years from Rs4.6bn during 2007-08. (BS)
HCC may set up subsidiaries for real estate and infra business. (ET)
RNRL expects gas from KG basin to start flowing from 2009. (ET)
Idea to invest Rs16bn for operations in new circles. (BS)
Trent buys 100% stake in the retail chain Landmark. (BS)
Reliance Power to buy more coal mines in Indonesia. (BS)
Reliance Communications targets US$20bn global retail ILD market by adding features on its direct calling cards. (DNA)
BEML sets up a sourcing office in Shanghai and expects a business volume of Rs3bn in next 2-3 years. (ET)
PGCIL gets navratna status. (ET)
Videocon Group to establish US$1.5bn chip unit in Italy. (ET)
L&T Concrete sale near completion. (ET)
Apollo Hospital to invest Rs10bn for setting up 15 hospitals in India. (ET)
Jet Airways and SpiceJet have hiked fares as fuel charges zoom. (BS)
Parsvnath Developers acquires 1.18 acre plot in central Delhi for Rs2bn. (BS)
Glenmark to launch 5 drugs a quarter in the US. (DNA)
Strides Arcolab inks deal with Genepharm Australasia to sell its Australian and Asian business. (ET)
Spice Mobile set to launch a GSM phone for Rs800 this month. (BS)
Nucleus Software to spend Rs300mn for setting-up a software development centre in Jaipur. (DNA)
Webel Solar to invest Rs3bn for capacity expansion. (DNA)
Economic News
India’s trade deficit increases to Rs80.4bn in 2007-08 due to higher oil bill. (ET)
Cars and two-wheelers sales reverse slowdown in April 2008. Sales of Maruti and Hyundai grow by 22.4% and 36.7% respectively and Bajaj and Hero Honda register 23% and 9% growth respectively. (BS)
FM has asked public sector banks to disclose their exposure to forex derivatives and structured products. (BS)
Rates for home loan between Rs20-30lakhs are likely to soften. (ET)
CRR hike may be recouped from deposits. (ET)
The Drugs Controller General of India to reject applications seeking marketing approvals for copycat versions of medicines that have product patents in the country. (BS)
FM said that the banking transaction tax will be withdrawn by the end of this year. (BS)
Railways to rollback iron ore freight rate hike. (FE)
Government to make weekly price index into monthly by year-end. (BS)
Telcos ask Trai to fix channel price for IPTV. (ET)
Government to take action against airlines imposing a congestion fee. (ET)
Government wheat purchases hit 4-year high. (BS)
Capacity additions likely to soften cement prices. (ET)
Exports in March touch US$16.3bn. (BL)
Today's Pick - Gitanjali Gems
We recommend a buy in Gitanjali Gems from a short-term perspective. From the charts of Gitanjali Gems, we see that the stock was on a medium-term downtrend from the resistance level at around Rs 475 till it found support at around Rs 210 in early April 2008. However, after finding support at Rs 210, the stock reversed the direction and commenced its up move. Subsequently, the stock breached the medium-term down trendline and penetrated the 21-day moving average in mid Apr il. In the recent time, the stock penetrated 50-day moving average, pointing further bullishness. The daily relative strength index is featuring in the bullish region and the weekly RSI is steadily rising in the neutral region. Moreover, the daily moving average convergence and divergence has entered the positive territory. Our short-term outlook for the stock is bullish. We expect the stock’s current up move to continue to our price target of Rs 328Investor with short-term perspective can buy the stock while keeping the stop-loss at Rs 273 level.
Precious metals end lower
Prices drop as the dollar strengthens
Bullion metals finished lower today, Thursday, 1 May, 2008 after dollar strengthened. Yesterday, Federal Reserve cut interest rates in US by another quarter percentage point bringing it down to 2%. This was the seventh rate cut by the Fed since last September, 2007. Silver prices also rose for the day.
Comex Gold for June delivery fell $14.2 (1.6%) to close at $850.9 ounce on the New York Mercantile Exchange. Yesterday, the price closed lower by $11.6 at $865.1 just before the Fed announcement but then soared after Fed’s announcement. Last week, gold prices lost $20(2.8%) against previous week’s close. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce.
This year, gold prices have gained 1.8% for the till date against a 8.5% drop for the dollar against the euro. For April, prices closed lower by 6.3%. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.
Comex Silver futures for July delivery fell 39 cents (2%) to $16.2 an ounce. Silver has gained 8.5% in 2008 till date. For April, it closed lower by 5.5%. Silver gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.
On the currency markets, the dollar was solidly higher against most major rivals extending earlier gains after better-than-expected U.S. manufacturing data. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, rose 1% to 73.31.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies.
The central bank lowered its benchmark interest rate 25 basis points to 2% yesterday. Prior to that, the Fed has reduced its benchmark interest rate by 3 percentage points to 2.25 percent since last September as a housing slump and credit squeeze threatened to push the economy into a recession. Since last September, Fed has axed interest rates seven times. The ECB has kept rates unchanged at 4% since June.
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. 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 167 (1.5%) at Rs 11,257 per 10 grams. Prices rose to a high of Rs 11,427 per 10 grams and fell to a low of Rs 11,227 per 10 grams during the day’s trading.
At the MCX, silver prices for May delivery closed Rs 592 (2.7%) lower at Rs 21,529/Kg. Prices opened at Rs 22,290/kg and fell to a low of Rs 21,470/Kg during the day’s trading.
Crude drops for third straight day
Prices go down further as the dollar makes its way up
Crude prices dropped by almost a dollar today, Thursday, 1 May, as the dollar strengthened against its rivals. The same reduced the commodities’ appeal as a hedge against inflation. Prices also continued to slip for the third straight day after yesterday’s weekly inventory report by the Energy Department showed that crude supplies rose more than forecast.
Crude-oil futures for light sweet crude for June delivery closed at $112.52/barrel (lower by $0.94/barrel or 0.8%) on the New York Mercantile Exchange. Earlier prices slipped to $110/barrel. For the year, crude is up by 16.8% till date.
EIA reported yesterday that U.S. crude oil imports averaged 10.2 million barrels per day last week, up 174,000 barrels per day from the previous week. Traders had anticipated that U.S. crude-oil supplies advanced 950,000 barrels in the week ended 25 April. Crude inventories were boosted by increasing imports. U.S. refineries operated at 85.4% of their operable capacity last week, down 0.2% from the last week.
EIA also reported gasoline supplies fell by 1.5 million barrels in the latest week, while distillate stocks, which include diesel and heating oil, rose by 1.1 million barrels.
In the currency market today, the dollar was solidly higher against most major rivals extending earlier gains after better-than-expected U.S. manufacturing data. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, rose 1% to 73.31.
Against this backdrop, June reformulated gasoline edged down 2.81 cents to $2.8782 a gallon, June heating oil dropped 4.3 cents to $3.1177 a gallon.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.
At the MCX, crude oil for May delivery closed at Rs 4,507/barrel, lower by Rs 121 (2.6%) against previous day’s close. Natural gas for July delivery closed at Rs 427.3/mmbtu, lower by Rs 12.2/mmbtu (2.8%).
Subscribe to:
Posts (Atom)