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Monday, May 05, 2008
NSE Bulk Deal Watch - May 5 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
05-MAY-2008,AZTECSOFT,Aztecsoft Limited,MINDTREE CONSULTING LIMITED,BUY,4000000,80.00,-
05-MAY-2008,EVINIX,Evinix Accessories Limite,ACCURATE FINSTOCK PVT LTD,BUY,550000,16.50,-
05-MAY-2008,SITASHREE,Sita Shree Food Products,ADROIT FINANCIAL SERVICES PVT LTD,BUY,138086,52.93,-
05-MAY-2008,SITASHREE,Sita Shree Food Products,DEVANG MAHENDRA SHAH,BUY,136812,52.84,-
05-MAY-2008,SITASHREE,Sita Shree Food Products,MAHESH CHAND MITTAL,BUY,72100,52.94,-
05-MAY-2008,TWL,Titagarh Wagons Limited,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,BUY,100002,817.48,-
05-MAY-2008,AZTECSOFT,Aztecsoft Limited,BSMA LIMITED,SELL,518000,80.00,-
05-MAY-2008,AZTECSOFT,Aztecsoft Limited,CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD,SELL,1000000,80.00,-
05-MAY-2008,AZTECSOFT,Aztecsoft Limited,LEHMAN BROTHERS,SELL,2180308,80.00,-
05-MAY-2008,EVINIX,Evinix Accessories Limite,SOPHIA GRWOTH - A SHARE CLASS OF SOMERSET INDIA FUND,SELL,1000000,15.50,-
05-MAY-2008,IBSEC,Indiabulls Securities Lim,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,2440000,127.40,-
05-MAY-2008,ORBITCORP,Orbit Corporation Limited,EVERLONE TRADING PVT. LTD.,SELL,200000,495.00,-
05-MAY-2008,RAJVIR,Rajvir Industries Limited,INDIA EMERGING INFRAST PVT LTD D P REAL ESTATES PVT LTD,SELL,20000,150.00,-
05-MAY-2008,SITASHREE,Sita Shree Food Products,ADROIT FINANCIAL SERVICES PVT LTD,SELL,138086,52.98,-
05-MAY-2008,SITASHREE,Sita Shree Food Products,DEVANG MAHENDRA SHAH,SELL,136812,52.83,-
05-MAY-2008,SITASHREE,Sita Shree Food Products,MAHESH CHAND MITTAL,SELL,112100,52.90,-
05-MAY-2008,TWL,Titagarh Wagons Limited,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,SELL,100002,818.38,-
05-MAY-2008,VISESHINFO,Visesh Infotecnics Limite,HONEY BEE SECURITIES LIMITED,SELL,200000,17.61,-
BSE Bulk Deals to Watch - May 5 2008
Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
5/5/2008 504629 ANIL SP STEL SHEETAL RAJESH JAIN B 148000 27.36
5/5/2008 504629 ANIL SP STEL SHEETAL RAJESH JAIN S 107900 27.41
5/5/2008 504629 ANIL SP STEL AMOL RAMCHANDRA PAWAR S 29320 27.03
5/5/2008 504629 ANIL SP STEL MAGADH TRADERS LTD S 112318 27.06
5/5/2008 532946 BANG MARUTI SECURITIES LTD S 113335 228.46
5/5/2008 590059 BIHAR TUBES SPJ STOCK B 133498 152.76
5/5/2008 531682 CAT TECHNOL NEWGEN INTERNATIONAL PVT LTD B 300000 7.99
5/5/2008 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD B 500000 8.08
5/5/2008 531682 CAT TECHNOL PRABHUDAS LILLADHER PVT. LTD. B 225873 7.75
5/5/2008 531682 CAT TECHNOL EDELWEISS ESTATES PRIVATE LIMITED B 1330184 7.93
5/5/2008 531682 CAT TECHNOL PRABHUDAS LILLADHER PVT. LTD. S 210873 7.99
5/5/2008 531682 CAT TECHNOL EDELWEISS ESTATES PRIVATE LIMITED S 1226517 7.93
5/5/2008 531682 CAT TECHNOL ARJUN RAMESH S 786105 7.89
5/5/2008 532413 CEREBRA INT STEP TWO CORPORATION LTD B 36935 44.37
5/5/2008 532363 COMP-U-LEARN GOOTY SAROJA TUMBALAM S 50000 13.92
5/5/2008 532271 CYBERMAT INF PRITIRAJ STOCK BROKING PVT LTD B 450000 7.23
5/5/2008 532271 CYBERMAT INF PRABHUDAS LILLADHER PVT. LTD. B 458735 7.08
5/5/2008 532271 CYBERMAT INF EDELWEISS ESTATES PRIVATE LIMITED B 3692186 7.17
5/5/2008 532271 CYBERMAT INF ASTUTE COMMODITIES AND DERIVATIVES PVT LTD B 468225 7.11
5/5/2008 532271 CYBERMAT INF PRITIRAJ STOCK BROKING PVT LTD S 450000 6.99
5/5/2008 532271 CYBERMAT INF PRABHUDAS LILLADHER PVT. LTD. S 459435 7.18
5/5/2008 532271 CYBERMAT INF EDELWEISS ESTATES PRIVATE LIMITED S 3562626 7.12
5/5/2008 532271 CYBERMAT INF ASTUTE COMMODITIES AND DERIVATIVES PVT LTD S 468225 7.17
5/5/2008 511682 IFL PRMOTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 17500 28.49
5/5/2008 532081 K SERA SERA EDELWEISS ESTATES PRIVATE LIMITED B 646692 34.47
5/5/2008 532081 K SERA SERA EDELWEISS ESTATES PRIVATE LIMITED S 577903 34.11
5/5/2008 532283 KASHYAP TEC OM EDUCATION IT PVT LTD B 4703614 2.01
5/5/2008 532283 KASHYAP TEC OM EDUCATION IT PVT LTD S 4723614 2.03
5/5/2008 532283 KASHYAP TEC MAHESH CHOTALAL SHAH S 1934494 2.01
5/5/2008 532967 KIRI DYES IMTIYAZ IBRAHIM DESAI B 130000 157.00
5/5/2008 531602 KOFF BR PICT MN KANTAWALA AND SONS S 25000 19.19
5/5/2008 531453 MOHIT INDUST SURESHKUMAR RAMRICHHPAL MALPANI B 25546 21.76
5/5/2008 519299 PRIME PROTEI NIRMAL N KOTECHA S 40000 3.86
5/5/2008 517522 RAJ GLO WIR SANGITA SUNIL CHORDIA B 90000 56.49
5/5/2008 517522 RAJ GLO WIR SWASTIKA FIN LEASE LIMITED S 25500 54.55
5/5/2008 517522 RAJ GLO WIR SHANTADEVI CHANDAN MAL CHORDIA S 65000 57.25
5/5/2008 532665 RAJVIR IND PEGASUS STOCKS AND SHARES PVT LTD. B 29866 151.00
5/5/2008 532665 RAJVIR IND INDIA EMERGING INFRASTRUCTURE PVT LTD S 52016 151.00
5/5/2008 511607 SHLOKA INFO NEWGATE INVESTMENT TRUST AC NEWGATE ASIA OPP MSTER FD LTD B 24674 35.41
5/5/2008 532961 SITA SHREE N D NISSAR B 159417 52.61
5/5/2008 532961 SITA SHREE N D NISSAR S 159417 52.71
5/5/2008 504375 SOFTBPO GLOB ANJU ADVISORY SERVICES PVT. LTD. S 7250 202.88
5/5/2008 532730 STL GLOBAL SHEETAL RAJESH JAIN B 127538 25.75
5/5/2008 532730 STL GLOBAL SHEETAL RAJESH JAIN S 127538 25.77
5/5/2008 526506 SYSTEM COR S ALLIANCE INTERMEDIATERIES AND NETWORK PVT LTD B 45000 60.60
5/5/2008 532966 TITAGARH WAG OPG SECURITIES PVT LTD B 358273 818.80
5/5/2008 532966 TITAGARH WAG OPG SECURITIES PVT LTD S 358273 819.27
5/5/2008 532765 USHER AGRO BALKRISHNA OZA B 141368 185.31
5/5/2008 532765 USHER AGRO BALKRISHNA OZA S 141368 185.74
5/5/2008 532765 USHER AGRO MAYANKKUMAR RAMESHCHANDRA BHAT S 95305 190.36
5/5/2008 532411 VISESH INFOT HONEY BEE SECURITIES LTD S 200000 17.58
Post Session Commentary - May 5 2008
The profit booking by the investors towards the final trading hours of the session took a lead, which led the Indian market to close on a disappointing note. The Indian market opened with marginal gains tracking the mixed cues from the global markets but the volatility gripped the market since the initial bell. Though the market got the momentum towards the mid session but was unable to sustain at the higher level and fell to close in negative. However, the investors showed some buying interest from the mid cap and small cap baskets. The market breadth was strong as 1613 stocks closed in green while 1118 stocks closed in red.
The BSE Sensex closed lower by 109.22 points at 17,490.90 and NSE Nifty fell by 35.95 points to close at 5,192.25. The BSE Mid Caps and Small Cap closed up by 61.79 points and 23.64 points at 7,299.26 and 8,845.35 respectively.
The Bankex index closed lower by 11.57 points at 9,130.61. Scrips that fell are IOB 3.11%, SBI 2.36%, PNB 1.97%, CentBOP 1.07%, HDFC bank 0.59% and ICICI bank 0.25%. Scrips that gained are Allahabad bank 6.78%, Kotak bank 5.81%, Union bank 2.77% and Yes bank 2.49%.
The Capital Goods index fell by 34.84 points to close at 14,210.03 as Areva 6.68%, Crompton Greaves 1.96%, Jyoti Structures 1.59%, ABB 1.42%, Kirloskar BR 1.16%, Punj Llyod 0.97%, Praj inds 0.63% and L&T 0.25%.
The Realty index closed up by 22.70 points at 8,741.39. Gainers are Unitech 4.01%, Penland 3.37%, Mahindra Life 2.14%, Purvankara 1.66%, Parsvnath 1.63%, Omaxe 1.15% and Phoenix mill 0.87%.
The Metal index closed up by 23.83 points at 15,887 as Maharash Sea 7.20%, Gujarat NRE 5.67%, Welspun Guj 2.04%, Jindal Saw 1.67%, Jindal Stainless 1.50%, Jindal Steel 0.94%, Hind Zinc 0.72% and Tata Steel 0.70% closed in green.
The Oil & Gas index slipped by 16.19 points to close at 11,699.18 as RNRL 2.84%, Aban Offshore 1.68%, Gail India 1.02%, BPCL 1%, RPL 0.91% and Reliance industries 0.34% closed in red.
From the IT space, I-Flex 5.36%, Aptech 3.57%, Tech Mahindra 3.18%, NIIt Techno 2.78%, HCL Techno 2.70%, Wipro 2.41%, TCS 1.72% and Satyam 1.34% closed in negative.
Market dips amid strong volatility
The market was extremely choppy during intra-day trades, as stocks gyrated between zones amid strong volatile moves. After opening slightly above its previous close at 17,687, the index gained more ground on sustained buying support to touch the day's high of 17,736, 136 points above its previous close of 17,600. While the index remained firm above the 17,700 mark for some time, it took a sharp downward turn in noon trades on resumption of hectic selling pressure and tumbled to an intra-day low of 17,457, down 279 points from the day's high. Buying in select counters saw the Sensex erase most of its losses by the closing hours, but still ended with losses of 109 points at 17,491. The Nifty, too, witnessed sideways movement and declined 36 points to close at 5,191.
However, the market breadth ended positive. Of the 2,776 stocks traded on the BSE, 2,639 stocks advanced, 1,099 stocks declined and 38 stocks ended unchanged. The BSE CD lost 2.22% while the BSE Auto index, the BSE IT index, the BSE Teck index, the BSE Power index, the BSE CG index and the BSE Oil & Gas index ended with marginal losses. The BSE PSU index, the BSE Realty index, BSE HC index and the BSE Metal index, however, finished in the green.
Among the laggards, Wipro slumped 2.41% at Rs490.10, SBI dropped 2.36% at Rs1,779.20, HDFC shed 2.30% at Rs2,710.05 and DLF was down 2.10% at Rs705.05. Mahindra & Mahindra, Tata Consultancy Services (TCS), Ambuja Cement, Satyam Computer Services, Hindalco and Reliance Communications were down around 1% each. Cipla, however, moved up 1.43% at Rs216. Tata Steel advanced 0.70% at Rs802.55, Grasim Industries gained 0.65% at Rs2,384.10 and ACC jumped 0.56% at Rs757.75.
Select IT stocks came under selling pressure. I-Flex, Aptech, Tech Mahindra, NIIT Technology, HCL Technologies, Rolta India, Mphasis, Wipro, TCS and Satyam Computer Services were down 1-5% each.
Sesa Goa at Rs4,390, Dalal Street at Rs2,499, Sterling Biotech at Rs210, G S Auto at Rs123.45, Suashis Diamond at Rs349, Well pack at Rs61.50, Radhe Developers at Rs150, Rai Agro at Rs1,675 and India Tourism at Rs99.60 touched new all-time highs.
Over 1.86 crore Tata Teleservices shares changed hands on the BSE followed by Kashyap (1.47 crore shares), ISPAT Industries (1.40 crore shares), IFCI (1.22 crore shares) and RNRL (1.09 crore shares).
Valuewise, Titagarh registered a turnover of Rs225 crore followed by HDFC (Rs198 crore), Reliance Industries (Rs197 crore), Unitech (Rs166 crore) and Jaiprakash Associates (Rs154 crore).
Small-cap, mid-cap indices buck slide in Sensex
After trading within a narrow range earlier in the day, the market declined in late trading as US stock futures indicated lower opening on the Wall Street on Monday, 5 May 2008. Dow futures were down 105 points and S&P 500 futures were down 6.80 points.
Realty and healthcare stocks outperformed the market. Consumer durables and IT stocks dropped. Small-cap and mid-cap counters were active throughout the session with their barometer indices outperforming the Sensex.
European markets, which opened after Indian market, were mixed. France’s CAC 40 was down 0.29% whereas Germany’s DAX was up 0.02%. The stock market in UK was closed for a holiday.
Asian markets, which opened before Indian market, were mostly in green. Key indices in China, and Singapore were up 0.37% to 1.84%. However, Taiwan’s Taiwan Weighted Index was down 1.41% and Hong Kong’s Hang Seng was down 0.22%. Markets in Japan, and South Korea were closed for holiday.
The 30-share BSE Sensex fell 109.22 points or 0.62% at 17,490.90. Sensex gained 135.58 points at day’s high of 17,735.70, hit in the early afternoon trade. The index lost 142.85 points at day’s low of 17,457.27, hit in the late trade.
The broader based S&P CNX Nifty was down 35.95 points or 0.69% at 5192.25. Nifty May 2008 futures were at 5205.10, at a premium of 12.85 points as compared to spot closing.
As per provisional data, foreign funds sold shares worth a net Rs 236.81 crore today. Domestic funds bought shares worth a net Rs 457.16 crore.
The market breadth was strong on BSE with 1613 shares advancing as compared to 1118 stocks that declined. 45 stocks remained unchanged.
The BSE Mid-Cap index rose 0.85% to 7,299.26 and BSE Small-Cap index rose 0.27% to 8,845.35. Both these indices outperformed the Sensex.
BSE clocked a turnover of Rs 6350 crore as against Rs 6,606.18 on Friday, 2 May 2008.
The NSE's futures & options (F&O) segment turnover was Rs 32972.85 crore, which was lower than Rs 36304.41 crore on Wednesday, 30 April 2008.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries fell 0.34% to Rs 2,665.70.
India’s largest engineering and construction firm by revenue Larsen & Toubro fell 0.25% to Rs 3133.10. The stock had earlier touched a high of Rs 3262. The firm is reportedly set to revamp its corporate structure to create a dozen operating companies under the direction of a separate board of directors. Effective 1 July 2008, the move will lead to L&T becoming the umbrella organisation with a board to administer the performance of all businesses and ownership of the brand, pegged at around $2 billion.
The BSE Bankex outperformed the Sensex, sliding 0.13% to 9,130.61. Kotak Mahindra Bank (up 5.81% at Rs 869.45), Federal Bank (up 2.78% at Rs 260.60), Union Bank of India (up 2.77% at Rs 168.75) and Yes Bank (up 2.49% at Rs 178.85), spurted.
Public sector lender Allahabad Bank rose 6.78% at Rs 92.95. Net profit of Allahabad Bank rose 34.8% to Rs 169.51 crore on 30.3% increase in operating income to Rs 1980.17 crore in Q4 March 2008 over Q4 March 2007.
India’s largest private sector bank by assets ICICI Bank fell 0.25% at Rs 933.15.
India's largest commercial bank State Bank of India declined 2.36% to Rs 1781.90. The bank reported 26.1% rise in net profit to Rs 1883.25 crore on 26.7% growth in operating income to Rs 16393.93 crore in Q4 March 2008 over Q4 March 2007.
The BSE Realty index outperformed the Sensex, gaining 0.26% to 8,741.39. Unitech (up 4.01% at Rs 330.90), Penland (up 3.37% at Rs 108.95), Mahindra Lifespace Developers (up 2.14% at Rs 560.95), and Purvankara Projects (up 1.66% at Rs 300.45), edged higher.
However, India's largest real estate developer by market capitalisation DLF fell 2.10% to Rs 705.05.
The BSE IT index underperformed the Sensex, falling 0.95% to 4,317.34. i-Flex Solutions (down 5.36% at Rs 1,345.25), HCL Technologies (down 2.70% at Rs 288.10), Wipro (down 2.41% at Rs 490.10), TCS (down 1.72% at Rs 924.55), Satyam Computer (down 1.34% at Rs 487.50) and Infosys Technologies (up 0.12% at Rs 1,787.35), slipped.
The BSE Auto index underperformed the Sensex, slipping 1.01% to 4,812.13. Hero Honda Motor (down 3.48% at Rs 818.15), TVS Motor (down 2.08% at Rs 44.65), and Maruti Suzuki (down 0.46% at Rs 784.40), declined.
India's largest commercial vehicles maker by sales Tata Motors slipped 0.71% at Rs 685.55. Tata Motors on Friday, 2 May 2008, reported a decline of 5.8% in automobile sales, including exports, at 38,149 units for April 2008 compared with 40,486 units in the same month last year, largely on account of dip in passenger car segment and exports. Passenger vehicle sales saw a decline of 12%, with total sales of 14,843 units in the domestic market in April 2008
India's leading tractor maker by sales Mahindra & Mahindra slipped 1.86% at Rs 677.50. Goldman Sachs will invest Rs 700 crore in Mahindra & Mahindra (M&M) by picking up convertible debentures which will give it a 3.68% stake in the auto major.
Drug maker Suven Life Sciences surged 2.12% to Rs 36.05 after the company said it has received European product patent from European Patent Office for its clinical candidate SUVN-502.
Jewellery maker Surana Corporation was locked at upper limit of 4.97% to Rs 47.55 on reporting 371.03% surge in net profit to Rs 6.11 crore on 37.44% growth in total income to Rs 619.33 crore in Q4 March 2008 over Q4 March 2007.
Real estate developer Housing Development and Infrastructure (HDIL) fell 1.54% to Rs 832.95. The company has reportedly received Maharashtra state government's approval for the Mumbai airport slum rehabilitation programme.
Telecom service provider Spice Communications surged 5.90% to Rs 42.20 on reports Telekom Malaysia is looking at increasing its stake in the company to at least 51% through a combination of open offer and acquisition of shares the co-promoters.
Titagarh Wagons clocked the highest turnover of Rs 225.07 crore on BSE. Housing Development and Infrastructure (HDIL) (Rs 198.60 crore), Reliance Industries (Rs 197.27 crore), Unitech (Rs 166.97 crore) and Jaiprakash Associates (Rs 154.87 crore), were the other turnover toppers on BSE in that order.
Tata Teleservices (Maharastra) reported the highest volume of 1.86 crore shares on BSE. Kashyap Technologies (1.47 crore shares), Ispat Industries (1.40 crore shares), IFCI (1.22 crore shares) and Reliance Natural Resources (1.09 crore shares), were the other volume toppers on BSE in that order.
US market ended with modest gains on Friday, 2 May 2008 after the latest non-farm payroll data showed 20,000 jobs were lost in April 2008, a far better result than an expected loss of 75,000 jobs. Dow Jones Industrial Average gained 48.2 points or 0.4% at 13,058.20, the Nasdaq Composite index fell 3.72 or 0.2%, to 2,476.99 and the S&P 500 ended up 4.56 points to 1,413.90.
High 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. 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 climbed 2,790.63 points or 18.84% to 17,600.12 on 2 May 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.
Market may remain positive
The market is expected to remain firm as investors have got mixed cues from the US and positive cues from the European markets. Major Asian indices like Nikkei are trading with gains of more than 200 points in morning trades. All this will boost investor sentiment in early trades. However, on the technical side, the Nifty could test 5255 on the upside and find support in the 5200-5150 range whereas the Sensex may face resistance at 17750 and find support at 17440.
US indices exhibited a mixed trend on Friday, with the Dow Jones moving up by 48 points to close at 13058 and the Nasdaq dropping by three points to close at 2477.
Except HDFC Bank, which was down marginally by 0.19 %, all the Indian floats had a decent outing on the US bourses. Rediff was the biggest gainer and rose 5.38% while Satyam scaled up 4.54%. MTNL, Wipro, ICICI Bank and VSNL jumped by over 2-3% each while Infosys, Tata Motors, Dr Reddy's and Patni Computer gained around 1% each.
Crude oil prices in the US market gained sharply, with the Nymex light crude oil for June delivery adding $3.27 to close at $116.32 a barrel. In the commodity space, the Comex gold for June 08 series rose $7.10 to settle at $858 an ounce.
Pre Session Commentary - May 5 2008
The Indian Market is likely to have a positive opening due to mixed cues from the global markets. On Friday, the Indian Market closed in green backed by strong 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 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. We expect that the market may remain range bound during the trading session.
On Friday, the US market closed mixed. The Dow Jones Industrial Average (DJIA) closed higher by 48.20 points at 13,058.20 along with S&P 500 closed up by 4.56 points at 1,413.90 while NASDAQ fell by 3.72 points to close at 2,476.99.
Today the major stock markets in Asia are trading firm. Hang Seng is trading higher by 21.72 points at 26,262.74 along with Singapore Strait Times trading up by 20.78 at 3,256.88 while Taiwan Weighted trading at 8,888.24 down by 75.39 points.
The FIIs on Friday stood as net seller in equity. The gross equity purchased was Rs3,418.30 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,503 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs84.70 Crore) and net debt was Rs0.00 Crore.
Today, Nifty has support at 5,132 and resistance at 5,299 and BSE Sensex has support at 17,310 and resistance at 17,924.
Market may gain
The market is likely to open higher as Friday’s rally may spill over in opening trade today. Firm global markets and good Q4 March 2008 results have led both the benchmark indices - BSE Sensex and S&P CNX Nifty settled above key levels of 17,600 and 5,200.
The 30-share BSE Sensex advanced 312.81 points or 1.81% at 17,600.12 while the broader based S&P CNX Nifty garnered 62.3 points or 1.21% at 5,228.20 on 2 May 2008 tracking firm global markets.
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. 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.
Asian markets were trading mixed today, 5 May 2008. Straits Times (up 0.64% at 3,256.88) and Shanghai Composite (up 0.66% to 3,717.43), gained.
However, Taiwan's Taiwan Weighted (down 0.84% at 8,888.24) and Hong Kong's Hang Seng (down 0.20% at 26,187.96), slipped.
On Friday, 2 May 2008, Dow Jones Industrial Average gained 48.2 points or 0.4% at 13,058.20 after the latest non-farm payroll data showed 20,000 jobs were lost in April, a far better result than an expected loss of 75,000 jobs. The Nasdaq Composite index fell 3.72 or 0.2%, to 2,476.99. The S&P 500 was up 4.56 points to 1,413.90
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.
Crude oil for June delivery slipped 7 cents at $116.25 a barrel, in after-hours electronic trading on the New York Mercantile Exchange in Singapore on speculation rising demand and production disruptions in Nigeria may limit supplies.
As per provisional data, foreign institutional investors (FIIs) purchased shares worth a net Rs 658.34 crore on Friday, 2 May 2008. Domestic funds sold shares worth a net Rs 18 crore on that day.
FIIs were net buyers of Rs 1,739.41 crore in the futures & options segment on Friday, 2 May 2008. They were net buyers of index futures to the tune of Rs 1,155.03 crore and bought index options worth Rs 526.97 crore. They were net buyers of stock futures to the tune of Rs 59.43 crore and sold stock options worth Rs 2.02 crore.
Morning Call - May 5 2008
Market Grape Wine :
In House :
Nifty at a support of 5135 and 5156 with a resis of 5269 and 5310.
CASH:
Buy : IRB above 215.35 Tgt 225 with a S/L of 212
Buy : Bharat forge above 300 Tgt 312 with a S/L of 295
FUTURE:
Buy: Airdeccan above 151Tgt 170 with a S/L of 140
Buy: Icicibank above 928 Tgt 965 with a S/L OF 910.
Out House :
Markets at a support of 17373 & 17471 and resistance at 17786 & 17871 levels .
Buy : RPL & RPower
Buy : RCap & RIL
Buy : HDIL
Buy : Kotak
Buy : BombayDye
Buy : Centextile
Buy : Coreproject
Buy : Unitech
Buy : BEL
Dark Horse : , Kotak , HDIL, Hdfc , CORE, RIL , RCap & RPL
Grey Market - Gokul Refoils, Aishwarya Telecom
Aishwarya Telecom 35 10 to 12
Gokul Refoils 175 to 195 15 to 17
Trading Calls - May 5 2008
Nifty (5228) Sup 5180 Res 5290
Buy DCB (117) SL 113
Target 126, 128
Buy Satyam (494) SL 489
Target 503, 505
Buy Divi's Labs (1521) SL 1500 Target 1550, 1565
Sell ABB (1121) SL 1140
Target 1080, 1070
Sell Ultratech (757) SL 763 Target 742, 739
Worries Remain!
If you can solve your problem, then what is the need of worrying? If you cannot solve it, then what is the use of worrying?
The bulls came up trumps for yet another week, despite inflation shooting up to a 42-month high. In short, most worries are being ignored for now. The RBI's move to keep rates unchanged, coupled with firm global markets and decent set of earnings helped the bulls maintain the current momentum. Technically too, things are looking up, with the Nifty surpassing the 200 DMA comfortably and staying above that level. Technical experts see further upside of about 150-200 points on the Nifty before the bulls meet with any major resistance. The 5000 level is being seen as a major support for the Nifty. Lots of put writing is taking place at this level. Single stock futures too witnessed encouraging build up last week. Things are looking promising for the bulls as of now though a fresh downside is not entirely ruled out.
Most factors that led to the big crash in the first quarter may still pose some challenges going ahead. Don’t get carried away with the current euphoria. Lock in gains in stocks that have seen a healthy rally over the past month or so. FIIs have not been pretty active during the ongoing rally, which raises some doubts about the strength and longevity of the rebound. This week, the outlook remains positive, with the
Key Results Today: Century Enka, Century Textiles, i-flex and JSW Steel.
FIIs were net buyers of Rs6.58bn (provisional) in the cash segment, while local institutions were net sellers of Rs180mn. In the F&O segment, foreign funds were net buyers of Rs17.39bn. On Wednesday, FIIs were net sellers of Rs847mn in the cash segment.
Most Asian stocks advanced this morning, lifting the region's benchmark to an almost four-month high, after copper and crude oil prices rallied. BHP Billiton advanced in Sydney. STX Pan Ocean Co. led shipping stocks higher after the price of transporting bulk commodities jumped to the highest in almost five months.
The MSCI Asia Pacific excluding Japan Index advanced 0.1% to 498.41 as of 9:29 a.m. in Hong Kong, with an index of raw material suppliers adding 1.1%. The regional benchmark was poised for its highest close since January 15.
Markets in Japan, South Korea and Thailand are closed for holidays. Australia's S&P/ASX 200 Index added 0.5%. Benchmark indexes open for trading elsewhere in Asia gained.
US shares closed mostly up on Friday after a highly choppy day. However, all the major indices eased off after a strong opening, which was sparked by fewer than expected job losses and the Federal Reserve's latest liquidity boosting measures.
Up 120 points at the start, the Dow Jones Industrial Average gained 48 points, or 0.4%, to close at 13,058.20. It was up 1.3% on the week. The S&P 500 gained 5 points, or 0.3%, to close at 1,413.9, giving it a 1.1% weekly rise.
The technology-laden Nasdaq Composite fell 4 points, or 0.2%, to 2,476.99, clocking a weekly gain of 2.2%.
A better-than-forecast jobs report and the $23bn takeover of Wrigley pushed the US market to its longest winning streak in seven months last week. Technology, consumer and telephone stocks led the S&P 500 to a four-month high, while raw material and energy producers declined as the dollar climbed.
Volume on the New York Stock Exchange neared 3.9bn, with advancers outpacing decliners roughly 9 to 7. On the Nasdaq, almost 2.3bn shares traded hands, and declining issues edged just ahead of those advancing, about 4 to 3.
Crude oil futures rose $3.80 to close at $115.632 a barrel. Elsewhere on the New York Mercantile Exchange, gold futures gained $7.1 to $858 an ounce. The dollar advanced 1.3% against the euro last week. The yield on the benchmark 10-year Treasury note declined to 3.86% from 3.87% as traders anticipated that the Fed may pause its interest-rate cuts.
The Fed slashed the benchmark interest rate by a quarter point to 2% and indicated it's ready to pause after seven cuts since September. That pushed the dollar to the highest in five weeks, making commodities a less attractive investment because they are often priced in the US currency.
US job losses narrowed in April, with the non-farm payrolls dropping by 20,000, far fewer than the 75,000 decline that had been anticipated by most Wall Street analysts. The US unemployment rate dropped to 5% from 5.1% in April.
The jobs report signaled that the downturn in the world's largest economy may be milder than the 2001 recession.
Meanwhile, the Commerce Department reported a 1.4% rise in US factory orders in March.
Wall Street will start the new week in an upbeat mood, with investors growing more confident that the economy and the financial markets are heading towards a second-half recovery.
There's a growing sense that the worldwide credit crisis, triggered by the meltdown in the US housing sector is nearing an end.
European shares rallied on Friday after a day's break. The pan-European Dow Jones 600 index rose 1.9% to 329.21, extending early gains after data on the US labor market came in stronger than expected. Advancers on the Stoxx 600 led decliners by nearly a six-to-one ratio.
Most European stock markets were closed on Thursday for the May Day holiday.
The UK's FTSE 100 gained 2.1% to 6,215.50, while the French CAC 40 added 1.5% to 5,069.71 and the German DAX 30 advanced 1.4% to 7,043.23.
In the emerging markets, the Bovespa in Brazil rose 2.2% to 69,366 while the IPC index in Mexico gained nearly 0.9% to 30,551. The RTS index in Russia added 0.9% to 2140 and the ISE National 30 index in Turkey advanced 1.8% to 54,068.
US data to accelerate gains
It was the second straight day of gains for the bulls as key indices ended the week higher. Bulls yet again shrugged off the spike in the inflation figures lifting the Nifty index above the 5,200 mark and the Sensex index above the 17,600 mark. Inflation was at 7.57% in week ended April 19 against expectation of 7.42%. India’s Inflation stayed at 3 ½ years high.
Barring the Metal index all the other key BSE Sectoral indices ended in positive terrain. The Banking, Auto and the Realty stocks were the major gainers.
Among the 30-scrips of Sensex ICICI Bank, Reliance Industries, L&T and Infosys were among the major gainers. However, on the other hand RCom, Tata Steel, HDFC and Hindalco were among the major laggards.
Finally, the BSE benchmark Sensex ended 312 points higher to close at 17,600 and the Nifty index ended 62 points higher to 5,228.
Overall about 1,400 stocks advanced; 1,301 stocks declined while 67 stocks remained unchanged. Among the 50-Nifty 32 stocks ended in green and 18 stocks ended in red.
Tata Steel slipped by 2.5% to Rs797. The company along with Essar is interested in buying stake in Krakatau Steel. The scrip touched an intra-day high of Rs826 and a low of Rs791 and recorded volumes of over 8,00,000 shares on BSE.
Indian Bank gained by over 2% to Rs142 after the company announced that it signed an agreement with Reliance Capital Assets Management. The scrip touched an intra-day high of Rs143 and a low of Rs140 and recorded volumes of over 2,00,000 shares on BSE.
Reliance Power edged higher by 0.5% to Rs396 after the company said its unit agreed to buy three coal mines in Indonesia. The unit will buy 100% ``economic interest'' in the mines. The scrip touched an intra-day high of Rs404 and a low of Rs395 and recorded volumes of over 16,00,000 shares on BSE.
JP Associates advanced by 6% to Rs286 after reports stated that the company emerged successful bidder for 45% stake in Price Petroleum. The scrip touched an intra-day high of Rs290 and a low of Rs272 and recorded volumes of over 53,00,000 shares on BSE.
Tech Mahindra gained by 4% to Rs950 as the company won the prestigious Billing & OSS World 2008 Excellence Awards in the 'Best Billing Solution' category for its LHS BSCS iX Release 1 Integrated with Ericsson Charging System project.
This award was announced by Billing & OSS World as a part of the Billing & OSS World 2008 conference & Expo in Chicago. The Billing & OSS World Excellence Awards recognizes the leaders- vendors, service providers and integrators -- in the development and deployment of billing and OSS technologies and processes. The scrip touched an intra-day high of Rs968 and a low of Rs921 and recorded volumes of over 1,00,000 shares on BSE.
United Phosphorous slipped by 2.3% to Rs315 after the company’s FY08 net profit fell by 0.35% to Rs2.81bn. However, net sales were at Rs37.3bn (up 52.2%). The scrip touched an intra-day high of Rs331 and a low of Rs310 and recorded volumes of over 1,00,000 shares on BSE.
Roman Tarmat gained by 1.3% to Rs84 after the company announced that it secured two orders of around Rs196.2mn for construction of additional concrete parking bays for aircraft at Cochin International Airport, Nedumbassery from Cochin International Airport Ltd at Company's quoted percentage rate of 36% (Thirty six Percentage) above the estimate amount of Rs81.8mn will come to Rs111.25mn. The scrip touched an intra-day high of Rs87 and a low of Rs84 and recorded volumes of over 18,000 shares on BSE.
Corporate News
GTL subsidiary acquires the tower business of Essar group for US$1.5bn.(BS)
ONGC Videsh secures a commitment for a 23% stake in Russia’s Sakhalin III project.(BS)
MRF to invest Rs9bn on a greenfield manufacturing plant in Tamil Nadu.(BS)
MindTree acquires 32.6% stake in Aztecsoft for Rs1.2bn.(BL)
Tata Steel eyeing the iron ore arm of Brazilian miner CSN.(BS)
Real estate developer HDIL gets government approval for Mumbai airport slum rehabilitation programme.(BS)
Vodafone and Idea may set up a separate tower or passive infrastructure company.(ET)
Godrej group exits from BPO business; to sell stake in Godrej Global Solutions to Tricom India for Rs196mn.(TOI)
Ennore Port may float an IPO to raise Rs8bn.(BL)
M&M to sell 3.7% stake to a unit of Goldman Sachs to expand its automobile and tractor business.(BS)
Telecom Malaysia is likely to increase its stake in Spice Communications to 51%.(ET)
Adani Power files DRHP to raise Rs56bn through an IPO.(DNA)
Tata Steel and Essar Steel, amongst others, seek a stake in Krakatau Steel, Indonesia’s state owned producer.(FE)
GMR consortium receives a 20 year license to operate the airport in the Turkish capital.(BS)
ONGC board approves Rs36bn in investments, including Rs 18bn for development of four oil fields in Barmer, Rajasthan.(BS)
Essar Shipping lines up US$800mn to buy 14 ships.(BL)
Elecon Engineering plans acquisitions in Western Europe or the United States.(BS)
Jaiprakash Associates wins a bid to buy 45% stake in Prize Petroleum.(BL)
Escalating steel prices likely to affect 60% of BHEL’s order book.(Mint)
JSW Steel and Ispat announce cut in steel prices in the range of Rs400-Rs700 per ton.(BL)
Ergo Insurance Group of Germany and Hero Group agree to form a life insurance JV in India.(ET)
GE Shipping to invest Rs24bn over next three years to acquire ships and upscale operation of subsidiary company.(BL)
Parsvnath Developers to develop a luxury mall complex in Delhi with an investment of Rs3bn.(DNA)
Income Tax department asks Tatas to pay Rs450mn for Idea stake buy.(ET)
GMR Energy plans to raise Rs40bn through IPO and PE placements.(Mint)
Power Finance Corp. may be allowed to access up to US$5bn foreign exchange reserves through IIFCL.(ET)
Cipla makes unconditional offer to share the know-how of making all 354 essential drugs with the public sector drug manufacturers.(ET)
Supreme Court approves the prospecting license to Tata Steel for mining in Bailadila block in Chattisgarh.(DNA)
IOC asks government to allow autonomy in pricing of petroleum products.(ET)
Tata Motors sales decline 5.8% yoy in April; Eicher Motors April sales increase 16.8%.(FE)
Essar Exploration, a subsidiary of Essar Oil, reschedules drilling campaign in Myanmar.(BL)
DLF is setting up a JV with Italian leather and luggage accessory major Piquadro.(ET)
Air India to hike domestic fares by 10%.(ET)
BG India, part of BG Gas group, to invest US$1bn in oil exploration.(FE)
RCom to sell GSM handsets in the existing eight circles of Reliance Telecom.(ET)
Reliance Big Entertainment in talks with private equity funds for a divestment of 10% equity.(ET)
Economic News
TRAI issues a consultation paper on allocation and pricing of 3G spectrum.(BS)
Annual crude oil imports increase 9.1% yoy in the fiscal year ended March 2008.(FE)
India targets FDI investments worth US$35bn in 2008-09.(BS)
Thirteen PPP projects worth Rs79bn for various infrastructure segments receive government approval.(ET)
India close to clinching a free trade deal with Southeast Asian nations according to Trade Minister.(FE)
Government is expected to announce a new policy for investments in the fertilizer sector.(BL)
Government to import more cement from Pakistan.(ET)
Processed food industry to attract investments worth Rs950bn in the next three years.(FE)
Government may exempt cold rolled coils, galvanized products and tubes & pipes from the levy of 10% export duty if such products are exported against imported of semi-finished steel. (ET)
The Government may suspend trading in some more food futures to reign in spiraling prices. (DNA)
Today's Pick - JK Tyre and Industries
We recommend a buy in JK Tyre and Industries from a short-term perspective. The stock has been on a medium-term uptrend from its 52-week low of Rs 104 (touched on March 24, 2008). During this up move, the stock crossed over the 21- and 50-day moving averages. On May 2, the stock conclusively penetrated the 200-day moving average by surging almost 6 per cent on the session. We notice that there is an increase in volume over the past three trading sessions. The daily momentu m indicator is featuring in the bullish zone. We also note that the daily moving average convergence and divergence is featuring in the positive territory indicating bullishness. Moreover, the medium-term up trendline of the stock is intact. We are bullish on the stock in the short-term and expect it to move up to our price target of Rs 157 in the short-term. Investor with short-term perspective can buy the stock while keeping the stop-loss at Rs 131 level
via BL
US Market holds on to gains
Federal Reserve’s rate cut and better than expected employment report boost market
The last week that ended on Friday, 02 May, 2008 was quite eventful at US Market. It started with a couple of important news in the merger front. Thereafter market got swayed by Federal Reserve’s next slot of interest rate cuts. Market did react in a bit whimsical fashion to the interest rate cut. The week finally ended with the employment report which came as better thane expected.
The Dow Jones Industrial Average gained 166 points for the week. Tech - heavy Nasdaq gained 54 points. S&P 500 gained 16 points. In percentage terms the three indices gained 0.3%, 0.8% and 0.5% respectively.
After remaining a bit subdued in the earlier part of the week, market picked up momentum in the later part. Infact it can be said that it ended up being a three-day work week. That's because things didn't get really interesting for market participants until Wednesday, 30 April, 2008.
On Wednesday, The Federal Open Market Committee announced today 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.
The stock market was in rally-mode ahead of the Fed decision and got an added boost shortly after the headlines hit the wires. In striking fashion, it sold off sharply late in the day and ended Wednesday in negative territory. The knee-jerk explanation was that there was disappointment in the directive and the idea that the Fed didn't sound more hawkish on inflation.
On Thursday, 1 May, the indices soared. Huge gains in the financial and technology sectors powered the advance, as did a noticeable drop in commodity prices that were impacted by a strengthening dollar.
On Friday, 2 May, 2008 the Fed announced intentions to increase its Term Auction Facility to $150 billion from $100 billion, and also allow AAA asset-backed securities to be pledged as collateral. Continuing to act on proactive lines, the Fed increased swap lines with the Swiss National Bank to $12 billion from $6 billion and increased swap lines with the European Central Bank to $50 billion from $20 billion in a multilateral effort to address persistent liquidity pressures.
Also, on Friday, the job report was out where unemployment rate for April fell to 5% from 5.1% in March. April's unemployment rate was less than the consensus estimate of 5.2%. Nonfarm payrolls for April slipped by 20,000, which is less than the revised decline of 81,000 experienced in March and also less than the 75,000 decline economists expected. Importantly, these figures do not reflect the kind of weakness often associated with a recession.
The stock market made a nice move in the wake of the jobs report, but succumbed to some week-end selling interest that pared its gains considerably.
Among major earning reports for the week, Colgate-Palmolive, General Motors and Procter & Gamble - all topped expectations. Humana and Sysco topped expectations, while Verizon reported in-line earnings. Credit card processors Visa and MasterCard both reported their quarterly earnings. Visa topped its estimate by 17%, while MasterCard beat by 30%.
Among major deal news during the week, privately held snack food company, Mars is going to acquire Chicago-based Wrigley for roughly $23 billion, or $80 per share in cash, representing a 28% premium over Friday's closing level. Warren Buffet said that Berkshire Hathaway will provide $6.5 billion in financing.
On the economic report front, advance first quarter GDP rose by 0.6%, topping the consensus estimate of 0.5%.
Also the Conference Board said April consumer confidence fell to 62.3 from 65.9, marking the lowest consumer confidence in roughly five years. The number, however, is better than expected market projected the reading to slip to 61.
Executive Summary
For the week, indices registered modest gains. DJIx and S&P 500, each closed up by 1.3% and 1.1% respectively. Nasdaq closed up by 2.2%. Federal Reserve’s rate cut decision, earning and economic reports dominated the week.
The Federal Open Market Committee announced today 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%. Advance first quarter GDP rose by 0.6%, topping the consensus estimate of 0.5%.
For the year, Dow, Nasdaq and S&P 500 are down by 1.6%, 6.6% and 3.7% respectively
Crude bounces back
Prices rise almost $4 due to problems resurfacing in Middle East
Crude prices rose by more than $3 on Friday, 02 May, 2008. Price rose after reports that Turkish planes bombed bases of separatist Kurds in northern Iraq. But for the week, price closed lower by almost 2%. During the week, crude price began to slip 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 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 $116.3/barrel (higher by $3.8/barrel or 3.4%) on the New York Mercantile Exchange. Last Monday, 28 April, 2008, prices touched a historic high of $119.9/barrel. For the year, crude is up by 20.6% till date.
EIA reported earlier this week 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.
On the currency markets on Friday, U.S. dollar rallied against most other major currencies. The dollar index, which tracks the performance of the greenback against a basket of currencies, was up 0.4% to 73.53.
On Friday, the job report was out where unemployment rate for April fell to 5% from 5.1% in March. April's unemployment rate was less than the consensus estimate of 5.2%. Nonfarm payrolls for April slipped by 20,000, which is less than the revised decline of 81,000 experienced in March and also less than the 75,000 decline economists expected. Importantly, these figures do not reflect the kind of weakness often associated with a recession.
Against this backdrop, June reformulated gasoline gained 8.82 cents at $2.9664 a gallon and June heating oil rose 10.1 cents at $3.2187 a gallon. June natural gas futures rose 20.4 cents to $10.765 per million British thermal units.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.
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