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Wednesday, May 07, 2008
BSE Bulk Deals to Watch - May 7 2008
Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
7/5/2008 532975 AISHWARYA TE ANURAG SABOO B 200000 86.57
7/5/2008 532975 AISHWARYA TE PRUTHVI BROKERS AND SHARE HOLDINGS PVT LTD B 215000 85.03
7/5/2008 532975 AISHWARYA TE N D NISSAR B 883280 81.97
7/5/2008 532975 AISHWARYA TE NAMAN SEC AND FIN PVT LTD B 1665258 84.82
7/5/2008 532975 AISHWARYA TE LATIN MANHARLAL SEC PVT LTD B 1450686 86.07
7/5/2008 532975 AISHWARYA TE H.J.SECURITIES PVT. LTD. B 500473 86.48
7/5/2008 532975 AISHWARYA TE MANOJ NANDKISHOR TEKRIWAL B 657976 80.11
7/5/2008 532975 AISHWARYA TE SHAH SAMIR D B 100000 87.92
7/5/2008 532975 AISHWARYA TE ARCHITA JIGNESH SHAH B 60000 80.42
7/5/2008 532975 AISHWARYA TE SANJAY POPATLAL JAIN HUF B 717490 86.02
7/5/2008 532975 AISHWARYA TE ASTUTE COMMODITIES AND DERIVATIVES PVT LTD B 905088 86.15
7/5/2008 532975 AISHWARYA TE YATIN SATRA B 138456 82.61
7/5/2008 532975 AISHWARYA TE MUKESH H SHAH B 524462 81.30
7/5/2008 532975 AISHWARYA TE RINKESH V SHAH B 135511 84.55
7/5/2008 532975 AISHWARYA TE RIKEEN PRADIP DALAL B 59590 79.00
7/5/2008 532975 AISHWARYA TE HEENA CHANDRAKANT VORA B 18700 19.44
7/5/2008 532975 AISHWARYA TE MANISH PATODIA HUF B 70000 81.58
7/5/2008 532975 AISHWARYA TE RAJESH SONI B 57600 87.67
7/5/2008 532975 AISHWARYA TE YES INVESTMENTS B 275000 79.46
7/5/2008 532975 AISHWARYA TE VAGHJIBHAI GAGALDAS SHAH B 155508 81.58
7/5/2008 532975 AISHWARYA TE GOUTAM SUR B 59462 79.30
7/5/2008 532975 AISHWARYA TE GOPAL TRADERS B 100000 77.89
7/5/2008 532975 AISHWARYA TE VINOD SHOKEEN B 110000 88.28
7/5/2008 532975 AISHWARYA TE KASHISH FINSTOCK B 265000 78.58
7/5/2008 532975 AISHWARYA TE NILESH V SONI B 99614 55.21
7/5/2008 532975 AISHWARYA TE HARSHAD B PATEL B 37500 76.67
7/5/2008 532975 AISHWARYA TE OPG SECURITIES PVT LTD B 349174 82.78
7/5/2008 532975 AISHWARYA TE S.M.NISSAR B 1014532 83.17
7/5/2008 532975 AISHWARYA TE SONI JIGNESH BALKRISHNA B 102602 86.29
7/5/2008 532975 AISHWARYA TE PUJA TAPARIA B 110042 83.22
7/5/2008 532975 AISHWARYA TE PRASHANT LAHOTI B 54455 87.53
7/5/2008 532975 AISHWARYA TE DAKSHABEN MANOJBHAI GOHEL B 82000 84.23
7/5/2008 532975 AISHWARYA TE BOLLERE UTHAPPA MUDDAPPA B 55000 83.25
7/5/2008 532975 AISHWARYA TE SPJ STOCK B 28715 87.86
7/5/2008 532975 AISHWARYA TE HEMANT MADHUSUDAN SHETH B 100000 86.00
7/5/2008 532975 AISHWARYA TE SANJIV V DHAMI HUF B 59500 79.91
7/5/2008 532975 AISHWARYA TE ANGEL INFIN PRIVATE LIMITED B 132268 86.75
7/5/2008 532975 AISHWARYA TE RAJESH SONI S 57100 87.63
7/5/2008 532975 AISHWARYA TE YES INVESTMENTS S 275000 81.68
7/5/2008 532975 AISHWARYA TE VAGHJIBHAI GAGALDAS SHAH S 103267 87.49
7/5/2008 532975 AISHWARYA TE GOUTAM SUR S 59462 80.36
7/5/2008 532975 AISHWARYA TE GOPAL TRADERS S 88866 92.34
7/5/2008 532975 AISHWARYA TE KASHISH FINSTOCK S 265000 90.33
7/5/2008 532975 AISHWARYA TE NILESH V SONI S 78614 73.83
7/5/2008 532975 AISHWARYA TE HARSHAD B PATEL S 35000 84.88
7/5/2008 532975 AISHWARYA TE OPG SECURITIES PVT LTD S 349174 82.96
7/5/2008 532975 AISHWARYA TE S.M.NISSAR S 1014532 83.34
7/5/2008 532975 AISHWARYA TE SONI JIGNESH BALKRISHNA S 102602 86.79
7/5/2008 532975 AISHWARYA TE PUJA TAPARIA S 110042 84.24
7/5/2008 532975 AISHWARYA TE DAKSHABEN MANOJBHAI GOHEL S 82000 87.18
7/5/2008 532975 AISHWARYA TE BOLLERA UTHAPPA MUDDAPPA S 55000 85.51
7/5/2008 532975 AISHWARYA TE SPJ STOCK S 28715 88.32
7/5/2008 532975 AISHWARYA TE SANJIV V DHAMI HUF S 59500 79.69
7/5/2008 532975 AISHWARYA TE ANGEL INFIN PRIVATE LIMITED S 125268 86.66
7/5/2008 532975 AISHWARYA TE ANURAG SABOO S 200000 89.72
7/5/2008 532975 AISHWARYA TE PRUTHVI BROKERS AND SHARE HOLDINGS PVT LTD S 165000 83.47
7/5/2008 532975 AISHWARYA TE N D NISSAR S 883280 82.12
7/5/2008 532975 AISHWARYA TE NAMAN SEC AND FIN PVT LTD S 1659758 84.94
7/5/2008 532975 AISHWARYA TE INDUSINO MAURITIUS LTD S 124701 55.00
7/5/2008 532975 AISHWARYA TE LATIN MANHARLAL SEC PVT LTD S 1436686 86.18
7/5/2008 532975 AISHWARYA TE H.J.SECURITIES PVT. LTD. S 500473 86.53
7/5/2008 532975 AISHWARYA TE MANOJ NANDKISHOR TEKRIWAL S 457976 91.56
7/5/2008 532975 AISHWARYA TE DBS CHOLA SMALL CAP FUND S 66538 61.25
7/5/2008 532975 AISHWARYA TE ARCHITA JIGNESH SHAH S 60000 84.75
7/5/2008 532975 AISHWARYA TE ASTUTE COMMODITIES AND DERIVATIVES PVT LTD S 886888 86.03
7/5/2008 532975 AISHWARYA TE YATIN SATRA S 138456 82.81
7/5/2008 532975 AISHWARYA TE MUKESH H SHAH S 524462 81.30
7/5/2008 532975 AISHWARYA TE RINKESH V SHAH S 135511 83.78
7/5/2008 532975 AISHWARYA TE CHOLA MUTUAL FUND OPPORTUNITY FUND S 58076 69.73
7/5/2008 532975 AISHWARYA TE MANISH PATODIA HUF S 70000 81.98
7/5/2008 532797 AUTOIND MANSUKH STOCK BROKER LTD B 92874 272.37
7/5/2008 532797 AUTOIND KEDIA SECURITIES PVT LTD B 60000 277.14
7/5/2008 532797 AUTOIND MANSUKH STOCK BROKER LTD S 92874 274.18
7/5/2008 505506 AXON INFOTEC ARYAVRAT FINANCIAL SERVICES LTD. B 3650 43.51
7/5/2008 532385 AZTECSOFT L MINDTREE CONSULTING LTD B 435000 78.99
7/5/2008 532946 BANG MARUTI SECURITIES LTD. B 123712 231.97
7/5/2008 590059 BIHAR TUBES SPJ STOCK B 107763 152.39
7/5/2008 590059 BIHAR TUBES SPJ STOCK S 107763 152.85
7/5/2008 531682 CAT TECHNOL EDELWEISS ESTATES PRIVATE LIMITED B 169781 8.00
7/5/2008 531682 CAT TECHNOL EDELWEISS ESTATES PRIVATE LIMITED S 160992 8.03
7/5/2008 530191 CHROMATI IND NITIN C MEHTA S 15000 39.36
7/5/2008 532271 CYBERMAT INF EDELWEISS ESTATES PRIVATE LIMITED B 4390464 7.27
7/5/2008 532271 CYBERMAT INF ASTUTE COMMODITIES AND DERIVATIVES PVT LTD B 511327 7.09
7/5/2008 532271 CYBERMAT INF EDELWEISS ESTATES PRIVATE LIMITED S 4557274 7.14
7/5/2008 532271 CYBERMAT INF ASTUTE COMMODITIES AND DERIVATIVES PVT LTD S 446327 7.27
7/5/2008 531127 ENRICH INDUT ROCK BUILDERS DEV P. LTD B 160077 2.10
7/5/2008 531127 ENRICH INDUT NAMITA J BHARWANI S 111307 2.10
7/5/2008 531137 GEMSTONE INV BHAVESH PRAKASH PABARI B 100000 19.45
7/5/2008 531439 GOLDSTON TEC BULL INVESTMENTS MADRAS PVT LTD B 118186 212.76
7/5/2008 532822 IDEA CELL SEQUOIA CAPITAL INDIA GROWTH INVESTMENT HOLDING S 13231780 100.27
7/5/2008 522183 ITL INDUSTRI RAJIV ARORA S 36565 56.72
7/5/2008 530985 JPTSECURITII N C JAIN B 34843 34.15
7/5/2008 530985 JPTSECURITII N C JAIN S 26109 34.07
7/5/2008 521030 NAKODA TEXT FRIENDS OIL AND CHEMICAL TERMINALS PVT LTD B 100000 57.59
7/5/2008 531273 RADHE DEVELO JASMINE JAYENDRA THAKKER B 170023 164.27
7/5/2008 531273 RADHE DEVELO SHYAM RAMBHAI PATEL B 58000 159.34
7/5/2008 517522 RAJ GLO WIR RAJRATAN RESOURCES PVT LIMITED B 59300 57.95
7/5/2008 517522 RAJ GLO WIR CHANDAN MAL CHORDIA S 55400 58.00
7/5/2008 531324 ROSELABS FIN FALCON COMPLEX PVT LTD B 50000 11.60
7/5/2008 531324 ROSELABS FIN MADHUDEVI SUNILKUMAR PODDAR S 100000 11.70
7/5/2008 532966 TITAGARH WAG OPG SECURITIES PVT LTD B 125342 832.61
7/5/2008 532966 TITAGARH WAG OPG SECURITIES PVT LTD S 125342 833.08
7/5/2008 531390 UPSURGE INVS BILPOWER LTD S 150000 8.55
7/5/2008 532765 USHER AGRO MAYANKKUMAR RAMESHCHANDRA BHAT S 190139 164.08
7/5/2008 531249 WELL PACK PA N C JAIN B 51767 53.57
7/5/2008 531249 WELL PACK PA N C JAIN S 37516 51.97
Market ends lower
BSE Mid-cap Index closed down 0.40%, while the BSE Small-cap Index fell 0.25%.
Asian stocks performed mixed on Wednesday on concern that the record oil prices and slowing global economy will dent earnings growth at banks and refiners; while commodity producers BHP Billiton and Inpex Holdings gained.
European shares climbed in early trade on better earnings outlook after Lafarge and British American Tobacco posted better earnings that boosted confidence among investors.
FII Trends
Foreign institutional investors (FIIs) turned net buyers in the equity segment worth Rs 883 million on both the BSE and NSE on May 7, according to the provisional figures available at the NSE. They bought equities worth Rs 33,879.2 million and sold equities worth Rs 32,996.2 million. Total turnover in the cash segment of NSE stood at Rs 144,571.6 million on May 7.
Market Statistics
Out of the total 2,765 shares traded at the BSE, 1163 advanced, 1,538 declined while 64 remained unchanged.
Among sectoral indices, the BSE capital goods index was the worst hit, shedding around 2.2%.
Gainers at the BSE Sensex include TCS, which surged over 3% to close at Rs 966.20, M&M and Infosys rose over 1% each to Rs 673.85 and Rs 1843.20 respectively. HUL, Jaiprakash Associates, Tata Steel, RIL, Maruti, ITC and SBI also moved up.
Losers at the index were BHEL, which plummeted 4.12% to close at Rs 1783.75 followed by Bharti Airtel, which fell 3.64% to Rs 815.80 and DLF, which dropped over 2% to end at Rs 651.00. Ranbaxy, Satyam, Hindalco, ACC,NTPC and Cipla also slipped.
Idea Cellular topped the volume chart (Rs 20.38 million), followed by Ispat Industries (Rs 18.03 million) and IFCI (Rs 12.31 million). RNRL (Rs 10.19 million) and Cairn India(Rs 7.41 million) also witnessed good volumes.
Post Session Commentary - May 7 2008
Heavy selling pressures across the counters led the Indian market to close in red. Though the market opened with marginal gains but unable to sustain at higher levels as the profit booking prevails. The investors did not showed their active participation during the trading session as the cues from the global market are not in favor. The surging crude oil price above $121 per barrel led the investors to take cautious approach to book their position. From the sectoral front, the capital goods stocks faced the heavy selling pressures across the counters. The market breadth was weak as 1538 stocks closed in red while 1163 stocks closed in green.
The BSE Sensex closed lower by 33.70 points at 17,339.31 and NSE Nifty fell by 9.15 points to close at 5,135.50. The BSE Mid Caps and Small Cap closed lower by 28.74 points and 22.07 points at 7,201.57 and 8,727.17 respectively.
Losers from the BSE are Bharat Electricals (6.11%), Sesa Goa (5.32%), Reliance Indstrial Infra (5%), Axis bank (4.29%), BOI (4.17%), Bhel (4.12%), HPCL (3.96%) and IOCL (3.68%).
The Oil & Gas index closed higher by 78.95 points at 11,723.46. Gainers are Cairn India (7.47%), Aban Offshore (4.44%), Reliance inds (1.05%) and Essar Oil (0.74%).
The Capital Goods index declined by 312.93 points to close at 13,641.62. Major losers are Bharat Electricals (6.11%), Jyoti Structures (4.47%), Bhel (4.12%), BEML (2.52%), L&T (2.44%), Punj Lloyd (2.06%) and Havell India (1.99%) and Kalpataru Power (1.96%).
The Realty index closed lower by 129.45 points at 8,207.58. Losers are Indbull Real (2.83%), Anant Raj (2.74%), DLF (2.54%), Parsvnath (1.99%), HDIL (1.60%), Sobha Developers (1.49%) and Penland (1.34%).
The Bankex index fell by 71.79 points to close at 9,016.91 as Axis bank (4.29%), BOI (4.17%), Kotak bank (2.60%), BOB (2.40%), Allahabad bank (1.81%), Andhra bank (1.33%), Oriental bank (1%) and ICICI bank (0.99%) closed in negative territory.
The Metal index dropped by 101.97 points to close at 15,813.84 as Sesa Goa (5.32%), SAIL (3.31%), Jindal Steel (2.33%), Gujarat NRE (2.92%), Ispat inds (1.72%), Jindal Saw (1.57%), Bhushan Steel (1.44%) and Hindalco inds (1.15%) closed in negative.
From the IT space, TCS (3.02%), Mphasis (2.51%), Patni Computers (1.92%), Infosys (1.26%), Tech Mahindra (0.93%), Niit (0.73%), Niit Techno (0.51%) closed in green while Finance Tech (2.65%), Rolta Ind (2.19%), Satyam (1.56%) and I-Flex (0.35%) closed in red.
NSE Bulk Deal Watch - May 7 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
07-MAY-2008,AUTOIND,Autoline Industries Limit,MANSUKH SECURITIES & FINANCE LTD,BUY,91306,273.89,-
07-MAY-2008,AZTECSOFT,Aztecsoft Limited,MINDTREE CONSULTING LIMITED,BUY,1065000,79.00,-
07-MAY-2008,ISPATIND,Ispat Industries Limited,CLEAN FINANCE & INVESTMENT LTD,BUY,6593483,34.64,-
07-MAY-2008,JYOTISTRUC,Jyoti Structures Ltd,JP MORGAN CHASE BANK,BUY,549000,166.24,-
07-MAY-2008,KEYCORPSER,Keynote Corp Serv Ltd,CHAINANI SANJIV KANWAL,BUY,78000,128.50,-
07-MAY-2008,POLARIS,Polaris Software Lab Ltd,PACE FINANCIAL SERVICES,BUY,502834,111.51,-
07-MAY-2008,AUTOIND,Autoline Industries Limit,MANSUKH SECURITIES & FINANCE LTD,SELL,91306,272.45,-
07-MAY-2008,AZTECSOFT,Aztecsoft Limited,J KISHORE KUMAR,SELL,625000,79.00,-
07-MAY-2008,EVINIX,Evinix Accessories Limite,RAJYOG SHARE AND STOCK BROKERS,SELL,600000,15.27,-
07-MAY-2008,GOACARBON,Goa Carbon Ltd,ETHIO PLASTICS PVT LTD,SELL,54245,93.10,-
07-MAY-2008,GOLDTECH,Goldstone Tech Ltd.,SUMMIT COMMUNICATIONS PRIVATE LIMITED,SELL,170000,211.18,-
07-MAY-2008,IDEA,Idea Cellular Limited,SEQUOIA CAPITAL MAURITIUS,SELL,14210000,100.15,-
07-MAY-2008,ISPATIND,Ispat Industries Limited,CLEAN FINANCE & INVESTMENT LTD,SELL,6593483,34.64,-
07-MAY-2008,KEYCORPSER,Keynote Corp Serv Ltd,OMPRAKASH SARAOGI,SELL,80495,128.50,-
07-MAY-2008,POLARIS,Polaris Software Lab Ltd,PACE FINANCIAL SERVICES,SELL,502834,111.61,-
Market takes further hit, drops 34 points
The market continued its downward movement for the third consecutive session as nervousness gripped investors over FIIs turning net sellers of equities in the last few sessions and higher crude oil prices on prevailing violence in West Asia. Strong optimism in early trades fizzled out after the Sensex had opened firm at 17,404 and added another 10 points to touch the day's high of 17,414. While the market slipped below 17,300 by late morning trades, afternoon trades saw the Sensex slip deep in red on sustained selling in capital goods (CG), public sector unit (PSU) and realty stocks and touch the day's low of 17,230. The Sensex managed to erase losses of 109 points from the day's low on selective buying in heavyweights and ended the session at 17,339, down 34 points, while the Nifty declined nine points to close at 5,136.
Broader market remained weak. Of the 2,765 stocks traded on the BSE 1,538 stocks declined, 1,163 stocks advanced and 64 stocks ended unchanged. Barring the BSE IT index, BSE Oil & Gas index, BSE FMCG index, BSE Auto index and the BSE HC index, rest of the sectoral indices ended in negative. The BSE CG index dropped 2.24% at 13,642, the BSE PSU index shed 1.65% at 7,956 and the BSE Realty index 1.55% at 8,208.
Among the major losers in frontline stocks, BHEL dropped 4.12% at Rs1,783.75, Bharti Airtel slumped 3.64% at Rs815.80, DLF shed 2.54% at Rs651, Ranbaxy Laboratories lost 1.82% at Rs466.30, Satyam Computer Services declined 1.56% at Rs489.30 and Hindalco Industries slipped nearly 1.15% at Rs179.75. However, TCS jumped 3.02% at Rs966.20, Mahindra & Mahindra rose 1.48% at Rs673.85, Infosys added 1.26% at Rs1,843.20, HLL advanced 1.17% at Rs251.10, Jaiprakash Associates moved up by 1.07% at Rs274.80 and Reliance Industries gained 1.05% at Rs2,682.35.
CG stocks came under sharp hammering. Bharat Electricity Products crumbled 6.11% at Rs1,229.90, Jyoti Structure tumbled 4.47% at Rs162.45, BHEL slumped 4.12% at Rs1,738.75, Elecon Engeneering fell 3.70% at Rs149.85, BEML lost 2.52% at Rs1,137.05, Larsen & Toubro declined 2.44% at Rs2,986.50, Punj Lloyd shed 2.06% at Rs354.45 and Havells India was down 1.99% at Rs474.80.
Over 8.27 crore Aishwarya Telecom shares changed hands on the BSE followed by Idea Cellular (2.03 crore shares), Ispat Industries (1.80 crore shares), IFCI (1.23 crore shares), Cyber Mate (1.03 crore shares) and RNRL (1.01 crore shares)
Market ends lower; Capital goods shares weigh
The key indices ended in the negative territory. Weakness in Asian markets and a surge in crude oil prices spoiled the investor sentiments today. IT and oil & gas stocks were the front-runners. Capital goods stocks and the shares of PSU firms suffered the most.
European markets, which open after Indian markets, were trading higher. In Europe, key indices in UK, France and Germany were up 0.64% to 0.88%.
Asian markets ended lower today. Key indices in China, Hong Kong, Japan, Singapore and South Korea were down by 0.27% to 4.13%. However, Taiwan’s Taiwan Weighted Index was up 0.78%.
US crude was steady at $121.79 a barrel, just off a record high at $122.73 in New York with prices doubling in the past year. Foreign brokerage house Goldman Sachs, which had predicted that oil would hit $100 a barrel now forecasts a potential spike to $200 a barrel.
The 30-share BSE Sensex fell 33.70 points or 0.19% at 17,339.31. The index lost 143.03 points at day’s low of 17,229.98, hit in the afternoon trade. Sensex gained 40.80 points at day’s high of 17,413.81, hit in the early afternooon.
The broader based S&P CNX Nifty fell 9.15 points or 0.18% at 5135.50. Nifty May 2008 futures were at 5157.10, a premium of 21.6 points as compared to spot closing.
The market breadth was weak on BSE with 1163 shares advancing as compared to 1538 stocks that declined. 64 stocks remained unchanged.
The BSE Mid-Cap index fell 0.40% to 7,201.57 and BSE Small-Cap index fell 0.25% to 8,727.17. Both the indices underperformed the Sensex.
BSE clocked a turnover of Rs 5886 crore as against Rs 6,741.54 crore on Tuesday, 6 May 2008.
The NSE's futures & options (F&O) segment turnover was Rs 33,563.90 crore, which was higher than Rs 32,856.62 crore on Tuesday, 3 May 2008.
IT stocks moved up after rupee touched a 8-month low on Tuesday, 6 may 2008 as oil refiners stepped up dollar buying after oil hit a record high, adding to concerns of a widening trade deficit and slowing capital inflows. The BSE IT index outperformed the Sensex, gaining 0.68% to 4,413.30.
TCS (up 3.02% at Rs 966.20), Mphasis (up 2.51% at Rs 228.70), Infosys Technologies (up 1.26% at Rs 1,843.20), Wipro (up 0.14% at Rs 499.15), and Tech Mahindra (up 0.93% at Rs 952.20), rose.
The BSE Oil & Gas index outperformed the Sensex, rising 0.68% to 11,723.46. Reliance Industries (up 1.05% at Rs 2,682.35), Aban Offshore (up 1.05% at Rs 2,682.35) and Essar Oil (up 0.74% at Rs 287.05), rose.
Oil refiner Cairn India jumped 7.47% to Rs 278.45 in anticipation that the spiraling crude oil prices, which soared to a record high of $122.73 yesterday, will lead to higher price realization. Earlier in the day, the stock had touched an all time high of Rs 283.50.
However, state-run oil firms declined. HPCL (down 3.96% at Rs 244.05), Indian Oil Corporation (down 3.68% at Rs 459.15), BPCL (up 3.14% at Rs 382.85), slipped.
The BSE Capital Goods index underperformed the Sensex, falling 2.24% to 13,641.62. Bharat Electronics (down 6.11% at Rs 1,229.90), Bharat Heavy Electricals (down 4.12% at Rs 1,783.75), BEML (down 2.52% at Rs 1,137.05), Larsen & Toubro (down 2.44% at Rs 2,986.50) and Punj Lloyd (down 2.06% at Rs 354.45), tumbled.
The BSE Bankex underperformed the Sensex, falling 0.79% to 9,016.91. Axis Bank (down 4.29% at Rs 907.15), Bank of India (down 4.17% at Rs 338.85), Kotak Mahindra Bank (down 2.60% at Rs 836), Bank of Baroda (down 2.40% at Rs 317.55) and ICICI Bank (down 0.99% at Rs 918.85), slipped.
Plastic materials maker Uflex jumped 1.63% to Rs 149.60 after posting 60.6% surge in net profit to Rs 24.84 crore on 13.9% rise in net sales to Rs 362.42 crore in Q4 March 2008 over Q4 March 2007.
Information technology firm Mastek soared 8.34% to Rs 368.20 on reports that the company is betting on transport and healthcare sectors for fuelling its future revenue.
Marine transportation services provider Mercator Lines vaulted 3.38% to Rs 107.20 after its wholly owned subsidiary Mercator Lines (Singapore) reported three-fold jump in net profit to $52.2 million in the year ended March 2008 over the year ended March 2007.
Ethanol maker Dollex Industries was locked at upper limit of 5% at Rs 43.45 on setting 20 May 2008 as the record date for a 2-for-1 stock split.
Apparel maker and exporter Gokaldas Exports surged 12.32% at Rs 232.90 on reports that major stakeholder Blackstone Group was considering delisting the company this year.
Film maker Pritish Nandy Communications was locked at upper limit of 10% at Rs 64.20 after it said on Tuesday, 6 May 2008 it has signed a three-film deal with US-based Sony Pictures.
Ethanol maker Praj Industries gained 1.92% to Rs 199.05 after the company reported 77.44% surge in net profit to Rs 153.54 crore on 20.10% increase in total income to Rs 740.31 crore in the year ended March 2008 over the year ended March 2007.
Aishwarya Telecom settled at Rs 90.85 on BSE, a sharp premium of 159.57% over its issue price of Rs 35. The stock debuted at Rs 50.10 on BSE, a premium of 43.14% over its issue price.
Debutant Aishwarya Telecom clocked the highest turnover of Rs 697.52 crore on BSE. Reliance Capital (Rs 240.15 crore), Idea Cellular (Rs 205.62 crore), Cairn India (Rs 204.54 crore) and Bharti Airtel (Rs 172.08 crore), were the other turnover toppers on BSE in that order.
Aishwarya Telecom reported the highest volume of 8.27 crore shares on BSE. Idea Cellular (2.03 crore shares), Ispat Industries (1.80 crore shares), IFCI (1.23 crore shares) and Cybermate Infotek (1.03 crore shares), were the other volume toppers on BSE in that order.
US markets rose to a four month high yesterday, 6 May 2008 as Financial and energy shares sparked the positive moves on the US indices. US largest mortgage financing company Fannie Mae surged after its officials said they were cautiously optimistic that the worst of the credit crisis had passed even after posting a $2.5 billion quarterly loss. The Dow Jones industrial average rose 51.29 points or 0.40% to 13,020.83. The Nasdaq Composite index rose 19.19 points, or 0.78%, to 2,483.31. The S&P 500 advanced 11 points to 1,418
Market may open higher
The market is likely to open higher today tracking positive global cues. With results already declared from majority of the frontline corporates, the result season has almost come to an end. The near term trend is likely to be dictated by global cues.
Aggregate results of 1446 companies showed 17.50% rise in net profit on 22.10% rise in net sales in Q4 March 2008 over Q4 March 2007, so far. There was 28.60% rise in net profit on 23.70% rise in net sales in the year ended March 2008 over year ended March 2007.
Asian markets were trading mixed today, 7 May 2008. Shanghai Composite (up 0.61% at 3,756.15), Japan's Nikkei (up 0.93% at 14,179.49), Taiwan's Taiwan Weighted (up 1.07% at 8,952.03), advanced. However, Hong Kong's Hang Seng (down 0.24% at 26,199.67), Straits Times (down 0.04% at 3,247.42) and South Korea's Seoul Composite (down 0.06% at 1,857.87) slipped.
US markets rose to a four month high yesterday, 6 May 2008 as Financial and energy shares sparked the positive moves on the US indices. US largest mortgage financing company Fannie Mae surged after its officials said they were cautiously optimistic that the worst of the credit crisis had passed even after posting a $2.5 billion quarterly loss. The Dow Jones industrial average rose 51.29 points, or 0.40%, to 13,020.83. The Nasdaq Composite index rose 19.19 points, or 0.78%, to 2,483.31. The S&P 500 advanced 11 points to 1,418.
Back home, the 30-share BSE Sensex fell 117.89 points or 0.67% at 17,373.01 while the broader based S&P CNX Nifty slipped 47.6 points or 0.92% at 5144.65, on 6 May 2008.
As per provisional data, foreign funds sold shares worth a net Rs 815.61 crore yesterday, 6 May 2008. Domestic funds bought shares worth a net Rs 295.35 crore on that day.
Foreign institutional investors (FIIs) were net sellers of Rs 262.79 crore in the futures & options segment on Tuesday, 6 May 2008. They were net sellers of index futures to the tune of Rs 288.99 crore and bought index options worth Rs 242.96 crore. They were net sellers of stock futures to the tune of Rs 280.88 crore and bought stock options worth Rs 64.11 crore.
US crude was steady at $121.79 a barrel, just off a record high at $122.73 in New York with prices doubling in the past year. Foreign brokerage house Goldman Sachs, which had predicted that oil would hit $100 a barrel now forecasts a potential spike to $200 a barrel.
US Market manages a turnaround
Indices register good gains even after opening in the red post Fannie Mae’s losses
In spite of making a slow start, US Market ended higher today, Tuesday, 06 May, 2008. It was mainly the financial and the energy sector that helped the market end in the green. Crude prices closing a little shy of $122/barrel and good results from the homebuilding sector helped market rally. Nine of the ten economic sectors ended in the green. Telecom was the sole loser.
The Dow was down by almost 85 points earlier in the day. At the end, going into close, The Dow Jones industrial Average ended the day with a gain of 51.2 points at 13,020.6. The Nasdaq Composite Index, finished higher by 19.19 points at 2,483.31. S&P 500 finished higher by 10.7 points at 1,418.4.
Seventeen out of thirty Dow components ended in the green today. Alcoa was one of the main Dow winners while GM is one of the main Dow laggards.
In the morning, the indices were in the red after Fannie Mae fuelled the selling interest after reporting a larger than expected loss, cutting its dividend by 30% and announcing it is raising $6 billion in capital. The housing market turmoil continued to take its toll on Fannie Mae. Its shares opened more than 7% lower, but quickly rebounded to finish the day with an advance of 9%.
A warning from Federal Reserve Chairman Ben Bernanke weighed on sentiment earlier in the session, after he said late Monday that increasing home foreclosures could further harm the economy.
In the post lunch hours, market turned around. There was not clear catalyst for the gains, but financials stocks witnessed the most buying interest. The tech sector was also having the most influential role on the turnaround. Microsoft and Yahoo! were leading the way.
Indian ADRs ended mixed today. Infosys and VSNL were the two top winners gaining 3.5% and 2.8% respectively.
Crude prices rose by almost $2 once again today. Price rose due to supply problems continuing at Nigeria. The weak dollar also pushed up the crude price today. It touched a new high of $122.9/barrel today during the after hours electronic trading. Dollar weakness tends to benefit dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies. Crude-oil futures for light sweet crude for June delivery closed at $121.84/barrel (higher by $1.9/barrel or 1.6%) on the New York Mercantile Exchange. In the past three sessions, crude prices have gone up by almost $9.3 (8.3%). For the year, crude is up by 25.3% till date.
On the currency markets today, dollar continued to decline pushing crude prices further up. A weak dollar makes oil more attractive as an investment alternative. The dollar index, which measures the greenback against a basket of six major currencies, was at 73.007, down from 73.190 in late Monday.
For tomorrow, there are a number of economic reports on the dock. The first quarter productivity report is due tomorrow morning. Higher productivity helps offset inflationary forces, making the report a focal point tomorrow. Also due tomorrow is the March pending home sales index from the National Association of followed by the weekly oil inventory report. Lastly, the consumer credit report for March is due in the afternoon
Pre Session Commentary - May 7 2008
The Indian Market is likely to have a positive opening as the cues from the global markets are in favor. On Tuesday, the Indian market closed in negative territory on the back of heavy selling pressures across the sectoral indices. Tracking the weak cues from the global market, he domestic market opened on the back foot and kept on hovering in the negative territory throughout the trading session. The investors did not showed their active participation in booking their further positions. The BSE Sensex closed lower by 117.89 points at 17,373.01 and NSE Nifty fell by 47.6 points to close at 5,144.65. We expect that the market may volatile bound during the trading session.
On Tuesday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 51.86 points at 13,020.83 along with S&P 500 closed up by 10.77 points at 1,418.26 and NASDAQ grew by 19.19 points to close at 2,483.31.
Indian ADRS closed mixed. In technology sector, Infosys grew by (3.25%) along with Wipro by (2.01%) and Satyam by (1.30%). In banking sector, ICICI bank and HDFC bank fell by (1.93%) and (0.48%) respetively. In telecommunication sector, Tata Comm advanced by (2.85%) while MTNL dropped by (3.21%). Sterlite industries grew by (4.63%).
Today the major stock markets in Asia are trading mixed. Japan’s Nikkei is trading higher by 130.23 points at 14,179.49 along with Taiwan Weighted trading up by 94.66 points at 8,952.03 and Shanghai Composite trading at 3,756.15 up by 22.65 points while Hong Kong’s Hang Seng index is trading lower by 62.46 points at 26,199.67.
The FIIs on Tuesday stood as net seller in equity while the net buyer in debt. The gross equity purchased was Rs2,704.90 Crore and the gross debt purchased was Rs139.90 Crore while the gross equity sold stood at Rs3,011.50Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs306.70 Crore) and net debt was Rs139.90 Crore.
Today, Nifty has support at 5,012 and resistance at 5,239 and BSE Sensex has support at 17,134 and resistance at 17,768.
Nifty May futures at premium
Turnover in F&O segment slips
Nifty May 2008 futures were at 5174.50, at a premium of 29.85 points as compared to spot closing of 5144.65.
The NSE's futures & options (F&O) segment turnover was Rs 32,856.62 crore, which was lower than Rs 32,972.85 crore on Monday, 5 May 2008.
Reliance Industries (RIL) May 2008 futures were at premium at 2652.25 compared to the spot closing of 2650.
Reliance Natural Resources (RNRL) May 2008 futures were at premium at 121 compared to the spot closing of 119.55.
Reliance Petroleum (RPL) May 2008 futures were at premium at 202.45 compared to the spot closing of 200.10.
In the cash market, the S&P CNX Nifty lost 47.60 points or 0.92% at 5144.65.
Aishwarya Telecom, Gokul Refoils Grey Market
Aishwarya Telecom 35 8 to 10
Gokul Refoils 175 to 195 13 to 15
Trading Calls - May 7 2008
Nifty (5145) Supp 5090 Res 5190
Buy Satyam (496) SL 491
Target 506, 510
Buy Bharat Forge (306) SL 301 Target 316, 320
Buy TCS (937) SL 930
Target 953, 958
Buy Monnet Ispat (542) SL 537 Target 553, 556
Sell ACC (741) SL 746
Target 730, 725
US Market ends modestly lower
Crude prices hitting $120 once again sends a negative vibe in the market
US Market ended today, Monday, 05 May, 2008 with modest losses. Crude prices closing a little shy of $120/barrel and Microsoft’s drop of bid for Yahoo were perhaps the main reasons for the negative momentum in the market. Eight of the ten economic sectors retreated with energy and material sector being the sole winners.
The Dow Jones industrial Average ended the day with a loss of 88.6 points at 12,969.4. The Nasdaq Composite Index, finished lower by 12.8 points at 2,464. S&P 500 finished lower by 6.4 points at 1,407.4.
Twenty-six out of thirty Dow components ended in the red today. General Motors, AIG and Bank of America were the main Dow winners. Alcoa was one of the four Dow winners.
Microsoft decided last Friday to not pursue the takeover of Yahoo after its raised offer of $33 per share (up $2) was once again rejected by Yahoo. Microsoft shares closed lower by 2% today while Yahoo shares dropped by a huge 15%.
The Institute of Supply management (ISM) nonmanufacturing index rose to 52% from 49.6% in March. The increase was unexpected. It topped the consensus estimate of 49.1. Since the number is above 50 it reflects the services sector expanded in April, albeit at a slow pace.
Among some merger related news, shares of Sprint Nextel went up following a Wall Street Journal report that indicated Deutsche Telekom is pondering an offer to acquire Sprint.
All Indian ADRs ended in the red today. VSNL and Patni Computers were the main laggards dropping 5% and 4.5% respectively.
Crude prices rose by more than $3 once again today. Price rose due to supply problems once again emerging at Nigeria. The weak dollar also pushed up the crude price today. Crude-oil futures for light sweet crude for June delivery closed at $119.97/barrel (higher by $3.65/barrel or 3.1%) on the New York Mercantile Exchange. In the past two sessions, crude prices have gone up by almost $7.
Nigeria's rebel group Movement for the Emancipation of the Niger Delta, MEND, attacked a Shell oil flow station in the south of the country last weekend. Shell is a unit of Royal Dutch Shell. In recent months, MEND has claimed responsibility for a series of attacks on oil facilities in the Niger Delta.
On the currency markets today, the U.S. dollar weakened even after a report from the Institute for Supply Management showed that nonmanufacturing sectors of the U.S. economy expanded during April after three months of contraction. The dollar index, which tracks the performance of the greenback against a basket of currencies, was down 0.4% to 73.19.
On the New York Stock Exchange, more than 3.3 billion shares changed hands, and declining stocks topped those advancing about 9 to 7. On the Nasdaq, nearly 2.1 billion issues were traded, and declining stocks surpassed those on the rise by 5 to 4.
For tomorrow, there are no major economic reports scheduled for release. DR Horton and Fannie Mae are among a few companies scheduled to report prior to tomorrow's open.
Not feeling well!
A tough lesson in life that one has to learn is that not everybody wishes you well.
After a strong April, the bulls are suddenly finding it tough to feel well and extend the rally this month. The flow of bad news from all fronts has moderated though crude and inflation continue to soar. The market's behaviour over the fast few days has been quite inexplicable. While on Friday, the key indices rallied despite inflation soaring to a 42-month high, this week they have struggled to advance beyond last week's closing levels. In fact, the Nifty on Tuesday slipped below the 200 Day Moving Average (DMA) after surpassing the key technical level only last week. We see the market continuing in a sideways fashion in the near term.
Neither the bulls and nor the bears will be able to hold sway over the market. In short, there will be alternative bouts of buying and selling. While local institutions and even the retail investors have been supportive, it is the FII inflows which are of some concern. Global markets too have been choppy. Commodity prices, especially that of crude oil have jumped quite sharply. So, inflation will remain a bugbear for the bulls for quite a while before it softens. A good monsoon will definitely help the bulls' cause. But that will take some time.
Today, the market may open higher following the overnight gains on Wall Street. But, the trend will turn choppy again as the day wears on.
FIIs were net sellers of Rs8.16bn (provisional) in the cash segment yesterday while the local institutions pumped in Rs2.95bn. In the F&O segment, foreign funds were net sellers of Rs2.63bn. On Monday, FIIs were net sellers of Rs3.07bn in the cash segment. Mutual Funds were net buyers of Rs1.41bn on the same day.
Shares of Aishwarya Telecom Ltd. will get listed today. The IPO was subscribed 20 times.
Results Today: Batliboi, Blue Star Infotech, MRPL, Mid-Day, Praj Industries, Punjab Tractors, Shree Cement, Swaraj Engines and Union Bank.
Asian markets were largely up this morning, led by raw material producers and car makers after commodity prices advanced and Toyota said it will raise prices of some vehicles in North America.
BHP Billiton and Inpex Holdings, Japan's biggest oil explorer, led gains after crude futures reached a record. Toyota climbed to a two-month high. IHI Corp. rallied after the Nikkei newspaper said Japan's third-largest maker of heavy machinery may report its first profit in three years.
The MSCI Asia Pacific Index added 0.6% to 153.20 as of 10:22 a.m. in Tokyo, extending a three-day, 2% advance. Commodity producers jumped 1.4%, the biggest increase among the index's 10 industry groups.
The Nikkei in Tokyo climbed 130 points or 0.9% to 14,179, following a two-day holiday. The Hang Seng in Hong Kong was down 89 points or 0.3% at 26,172 while the Kospi in Seoul and the Straits Times in Singapore were at 1858 and 3249, respectively.
The Shanghai Composite in China lost 4 points at 3729 while the Taiex in Taiwan added 97 points or 1.1% to 8954. Australia's S&P/ASX 2oo in Sydney was up 5 points at 5706. Indexes gained elsewhere in Asia, except for New Zealand.
US stocks advanced on Tuesday as growing optimism over the state of the economy and the credit crunch countered record-high oil prices and big losses at financial firms. The rally sent S &P 500 Index to a four-month high.
Fannie Mae shares gained, helping financial stocks erase a 1.9% decline, on a regulatory decision that will enable the biggest mortgage-finance company to buy more home loans. AMD gained the most since January on speculation that the No.2 chipmaker may be split up.
The S &P 500 added 10.77 points, or 0.8%, to 1,418.26. The Dow Jones Industrial Average rose 51.29 points, or 0.4%, to 13,020.83. The Nasdaq Composite Index jumped 19.19 points, or 0.8%, to 2,483.31.
Market breadth was positive. Two stocks gained for each that fell on the New York Stock Exchange.
After the close, Cisco Systems reported quarterly sales and earnings that topped forecasts, sending shares 2% higher in extended-hours trading.
No market-moving earnings reports are expected on Wednesday. Economic news on the agenda includes the March pending home sales index and the weekly oil inventories report.
US stocks fell in the morning trade as crude oil prices spiked to a record $122.35 a barrel and Fannie Mae and other financial firms reported big quarterly losses. But the market stabilised by midday, as investors looked beyond rising crude prices and opted to snap up technology and financial shares.
Wall Street has rebounded since mid-March, with stocks rising nearly 15% off the lows. Investors are hopeful that any recession will be mild and that the Federal Reserve's monetary actions are starting to work.
Yahoo added 5.5% as investors bet that the Microsoft deal might actually end up going through after all.
Fannie Mae reported a steeper-than-expected quarterly loss due to increasing mortgage defaults and ongoing problems in the credit markets. Fannie Mae also said that it's cutting its dividend and will raise $6bn in capital through a stock sale. Looking forward, the mortgage financier said it expects severe weakness in the housing market in 2008. However, the stock gained nearly 9%.
Before the trading started, Swiss bank UBS reported a steep quarterly loss amid the US subprime fallout, and said it was cutting about 7% of its workforce, or roughly 5,500 jobs. UBS also said it was selling $15bn in subprime and other mortgage-based debt from its portfolio to BlackRock. Shares lost 1.5%.
Target said it is selling almost half of its credit card receivables to JP Morgan Chase for about $3.6bn as a means of raising cash.
In other news, Federal Reserve Chairman Ben Bernanke said that the spike in foreclosures are a result of falling home prices and require a big government and private-sector response.
US light crude oil for June delivery rose $1.87 to settle at $121.84 a barrel on the New York Mercantile Exchange, a record settlement price. Earlier, oil hit a new record trading high of $122.73 a barrel.
A Goldman Sachs analyst said that oil prices could reach $150 to $200 within the next six months to two years due to supply shortages.
The national average price for a gallon of regular unleaded gas slipped to $3.610 from $3.611 the previous day, according to AAA. It was the fifth day in a row of declines after gas prices hit records for 17 straight days.
COMEX gold for June delivery rose $3.60 to $877.70 an ounce. The dollar fell versus the euro and the yen. Treasury prices slipped, raising the yield on the benchmark 10-year note to 3.92% from 3.86% late on Monday.
Stocks in Europe lost ground. Financials dropped after UBS, Lloyds TSB and Swiss Re detailed credit-market losses, countering gains in the resource sector on the back of rising commodity prices.
The pan-European Stoxx 600 index lost 0.5% at 326.69, having gained around 12% since the middle of March. The index is still down around 11% for 2008. Germany's DAX 30 fell 0.5% to 7,017.10, while the French CAC-40 slipped 0.4% to 5,040.82. The UK's FTSE 100 finished flat at 6,215.20.
In the emerging markets, the Bovespa in Brazil ended flat at 70,195 while the IPC index in Mexico gained 0.85% to 31,223. The RTS index in Russia was up 0.6% to 2153 and the ISE National 30 index in Turkey dived 1.6% to 53,120
Market delicately poised
Indian bourses ended in red for second straight trading session tracking a fall in the Asian markets. The Asian stocks dropped for the first time in three days led by fall in financial companies.
Sentiments further dampened as European markets opened with negative bias after Swiss bank UBS AG announced that it posted a net loss of ~US$10.95bn in the first quarter of this year due largely to write-downs of US$19bn on U.S. real estate and related structured credit positions.
Finally, the BSE benchmark Sensex ended 117 points lower to close at 17,373 and the Nifty index lost 47 points to close at 5,144.
Overall about 975 stocks advanced; 1,711 stocks declined while 67 stocks remained unchanged. Among the 50-Nifty 31 stocks ended in red and 19 stocks ended in green.
SBI was down 1.2% to Rs1756. According to the reports, the company has hiked the interest rates on FCNR (B) deposits in different currencies and on NRE (rupee) term deposit across varying maturities, with effect from May 1, 2008. The scrip touched an intra-day high of Rs1783 and a low of Rs1735 and recorded volumes of over 2,00,000 shares on BSE.
After being in the limelight on Monday, IVRCL Infra slightly lost ground and slipped by 2.8% to Rs454. The company bagged orders worth Rs4.7bn from the irrigation and CAD department of Government of Andhra Pradesh. The scrip touched an intra-day high of Rs471 and a low of Rs445 and recorded volumes of over 1,00,000 shares on BSE.
Mahindra Lifespace gained by 1% to Rs568 after media reports stated that the company won 25acre residential project in Nagpur. The scrip touched an intra-day high of Rs587 and a low of Rs558 and recorded volumes of over 1,00,000 shares on BSE.
UCO Bank further gained by 2% to Rs51 following reports that the bank has received government approval for capital restructuring. The essence of restructuring, UCO Bank would be to issue non-cumulative preference shares of Rs3.25bn by June and conversion of Rs3bn of Government equity into preference shares, according to report.
With conversion, the size of equity capital UCO Bank will get reduced to Rs5bn, comprising Rs3bn of Government holdings and Rs2bn of public holdings. Banks are awaiting Cabinet approval for the conversion, report added. The scrip touched an intra-day high of Rs54 and a low of Rs50 and recorded volumes of over 92,00,000 shares on BSE.
HPCL slipped by 4% to Rs254 as reports stated that 3,500 officers have decided to go on indefinite nation wide strike from today, they were protesting against alleged fiscal mismanagement and arbitrary to its joint venutre with LN Mittal.
Strike will affect the functioning of petrol pumps, aviation refuelling and refinery operations at Mumbai and Vizag. The scrip touched an intra-day high of Rs264 and a low of Rs252 and recorded volumes of over 1,00,000 shares on BSE.
Pritish Nandy was frozen at 10% upper circuit to Rs59.40 after the company announced that they signed a three film deal with US-based Sony Pictures. The scrip touched an intra-day high of Rs59.40 and a low of Rs56 and recorded volumes of over 28,000 shares on BSE.
HCL Infosystems advanced by 1% to Rs201 after the company announced the acquisition of Natural Technologies Pvt Ltd (NTPL), a niche banking software product company.
With three decades of experience providing ICT and infrastructure solutions to the BFSI sector, the acquisition of niche products from NTPL will further consolidate HCL’s leadership position in this sector. The scrip touched an intra-day high of Rs203 and a low of Rs200 and recorded volumes of over 5,000 shares on BSE.
Opto Circuits was down by 2.3% to Rs352. The wholly owned subsidiary of Opto Circuits Mediaid Inc. received approval from the United States Food and Drug Administration for key vital sign monitoring products. The Model 900 and Model 960 Vital Sign Monitors are the first Opto bed-side monitors to receive the crucial approval for marketing in the United States. The scrip touched an intra-day high of Rs365 and a low of Rs346 and recorded volumes of over 14,000 shares on BSE.
Unity Infra edged higher by 0.5% to Rs603 after the company announced that it secured two orders worth Rs2.23bn. The scrip touched an intra-day high of Rs630 and a low of Rs580 and recorded volumes of over 43,000 shares on BSE.
L&T ended lower by 2.3% to Rs3061. The company on Tuesday secured orders worth Rs3.4bn from Power Grid for construction of transmission lines in Maharashtra. The company also plans to look for orders for constructing passenger cruise ships at its proposed facility at Kattupalli in Tamil Nadu, reports stated. The scrip touched an intra-day high of Rs3154 and a low of Rs3051 and recorded volumes of over 3,00,000 shares on BSE.
Corporate News
Reliance ADAG group plans to set up Rs100bn cement plant in MP. (Mint)
Vodafone to launch iPhone in India by September. (BS)
Reliance Industries shuts down all of its 1,432 petrol pumps. (Mint)
Ansal Properties terminates MoU with UAE-based Deeyar Development PSC. (Mint)
L&T and Grasim are set to settle their long standing dispute over cross holdings out of court. (BS)
Bharti Airtel may rope in SingTel for MTN buy. (BS)
Tata Steel targets Brazil iron ore assets of London Mining. (BS)
Nalco plans Rs140bn Greenfield aluminium smelter and captive power plant in Orissa. (BS)
Suzlon arm fined US$19,000 by US body for allegedly violating air pollution control norms. (BS)
Financial fraud may be the reason for departure of senior executives including CEOs at Fortis Healthworld. (Mint)
Big Bazaar reduces food prices by 20%. (BS)
Blackstone group mulls taking Gokaldas Exports private. (BS)
Tata Power plans entry in shipping business; lines up US$500mn investment. (BS)
Haldia Petro buys L&T’s 51% stake in power JV. (BS)
Sobha Developers to invest Rs2bn in Bangalore. (BS)
High Court orders status quo on RIL and RNRL dispute. (BL)
IOC is eyeing additional oil assets overseas jointly with Oil India. (BL)
BASF is setting up engineering plastic plant in Thane. (BL)
IOB mulls property sale to shore up Tier-I capital. (BL)
Reliance Infrastructure buys back shares worth Rs3,430mn. (BL)
Union Bank of India plans to issue shares on right basis (FE)
Pritish Nandy Communication signs three films with Sony Pictures. (FE)
HDFC MF picks up 5% stake in Carborundum Universal. (FE)
BEST says that REL's power distribution license in Mumbai to be suspended. (FE)
Power Grid looking for consultancy business in Nigeria and Dubai; plans capex of Rs80.4bn in current fiscal year. (FE)
Infosys and SAP enter in to global service partner agreement. (ET)
Gati launches air-freight services in association with Air India. (ET)
Vodafone, RCom likely to stay out of MTN race. (ET)
Monnet Ispat’s overseas subsidiary, Monnet Global, set to acquire mining rights for 250mn ton coal reserves in Indonesia from PT Anzarara. (ET)
Heidelberg to restructure Mysore Cement operations. (ET)
The high court sends notice to GVK-L&T consortium over Uttarkhand power project. (ET)
Geojit Finance to hive off commodity broking biz. (ET)
Economic News
RBI to lend US$5bn for infrastructure projects. (Mint)
Mumbai Metro may be the first private project to get JNNURM grant. (BS)
Cement firms assure price cuts if government grants excise duty abatement. (BS)
Centre urges states to cut jet fuel tax to 12.5%. (BS)
Nelp VII deadline extended to June 30, 2008. (BS)
National Highway builders to be affected by rising input costs. (BL)
State run petroleum marketing firm losses widens to Rs4.50bn per day on selling fuel below cost. (ET)
ECBs and FCCBs rose to about US$4.5bn in March 2008 as against to US$862.12mn in February. (FE)
State government agrees to reduce central sales tax from 3% to 2%. (FE)
State government not to increase the VAT rate on the intermediate good from 4% to 5%. (FE)
Stamp duty on debentures may go down to 0.0625% from the current 0.375%. (FE)
Duty on promissory notes likely to reach 0.0083%. (FE)
Finance Minister rules out further cut in custom duty on newsprint. (ET)
Government not considering any proposals to sell its stake in PSU banks. (ET)
Food crisis looming
The head of the Asian Development Bank on Monday called for an "immediate response" to soaring food prices which he said placed more than a billion Asians at risk of malnutrition.
ADB president Haruhiko Kuroda also warned that the food problem could cut into decades of economic gains in the Asia-Pacific region.
"These are troubling times for the world economy. On the heels of turmoil in the financial markets and economic slowdown in the US and elsewhere, soaring food prices are hitting the poor very hard," he said.
"This price surge has a stark human dimension and has greatly affected over a billion people in Asia and the Pacific alone. Their purchasing power has been eroded, placing them at a greater risk of hunger and malnutrition."
He said stocks of food grains were at the lowest levels for decades.
Reduced supplies and increased demand, along with the sharp depreciation of the US dollar and trade restrictions by some countries have combined to cause the price spike in recent months, Kuroda said.
"The focus must now be on the soaring prices and our immediate response," he said.
He called for "prudent macroeconomic management" along with targeted income support to protect food entitlements and livelihoods of the most vulnerable.
"The absence of such measures could seriously undermine the global fight against poverty and erode the gains of the past decades," he said.
"The ADB is prepared to respond with immediate financial assistance to relieve fiscal pressure on affected countries," Kuroda said.
Indian Telcos go global
Saturated urban markets, declining average revenue per user, tighter acquisition laws and the desire to achieve global scales is driving Indian telecom operators to foray into other emerging countries.
Bharti Airtel, Reliance Communications, Tata Communications and State-owned Mahanagar Telephone Nigam Ltd have already launched services in some of these new markets and are hungry for more.
“This is not a surprise development because as the Indian urban market gets saturated, these companies are looking at other emerging markets to sustain the growth. Africa, for instance, is one of the growing markets outside India. The other reason would be to get global scales, just like foreign multinational companies that are entering India. Indian telcos are also eyeing the advantages related to global scales,” said Ms Arpita Pal Agrawal, Associate Director, InfoComm Advisory Services, PricewaterhouseCoopers.
High Revenue
While ARPU in India is just around the $5 level, this is much higher at around $11 in other emerging markets. By foraying into such territories, Indian companies are hoping to cash in on higher margins.
Analysts also point out that Indian mobile market has already reached the 300 million mark and another 200 million subscribers are expected, mostly from rural areas. This is enough to sustain the current growth rate for only about 3-4 years more after which operators may come under pressure.
M&A norms
The recent mergers and acquisition norms have also made it impossible for existing telecom companies like Bharti and Reliance Communication to grow organically. A deal with South Africa’s MTN will give Bharti access to nearly 60 million subscribers across 21 countries.
For a company like MTNL, foreign markets offer an opportunity to go beyond Delhi and Mumbai. “MTNL has the licence to offer services in Delhi and Mumbai, which is already becoming a saturated market with more than 25 million subscribers and seven different operators. We need to look elsewhere to increase our revenues,” says an MTNL executive. MTNL’s profits have been dipping over the past few years and the company is, therefore, betting big on the foreign telecom forays.
For Tata Communications (formerly VSNL) too, expanding its presence to global markets has been part of a well thought-out strategy to reduce its dependence on domestic market where its share has been dwindling over the past few years due to competition. The company plans to invest $2 billion for global expansion over the next few years.
Operation costs
But Indian companies also have to deal with challenges related to higher cost of operations, different regulatory environments and competition from large global European and American majors who are also eyeing these emerging markets.
However, analysts don’t see too much resistance. “Indian operators are aware of these issues better and they will make a bid or acquire a licence only if it makes any business case. In the past too, some of the Indian operators have bid for licences but they have not quoted huge sums even if that meant losing out,” says Ms Agrawal.
One advantage that Indian operators have is that they have learnt the trick to make profits even as they offer the lowest tariffs in the world. Bharti’s talks with South African major MTN, if successful, will take this strategy to a new level. Other companies are eyeing countries such as Kenya, Egypt, CIS and the Gulf region to expand their footprint.
via BL
Todays Pick - HCC
From a short-term perspective we recommend a buy in Hindustan Construction Company. It is evident from the charts that the stock had been on a medium-term sideways consolidation in the range of Rs 111 and Rs 140 (from mid March 2008 to early May 2008).
However, on May 5, the stock made an upward breakout of the sideways consolidation and also crossed over the 50-day moving average by jumping up almost 6 per cent. We note that the volume has been increasing for the past five trading sessions.
The daily momentum indicator is testing 60 level and it is on the verge of entering the bullish zone. The daily moving average convergence and divergence is likely to enter the positive territory.
Considering the stock’s recent breakout, we are bullish on the stock for the short-term. We expect the stock to move up to our price target of Rs 163 in the forthcoming sessions.
Investor with short-term perspective can buy it while keeping the stop-loss at Rs 135 level.
via BL
Bullion metals continue to glitter
Another all time high crude price pulls up precious metals further
A new all time high crude price once again pulled up bullion metals today, Tuesday, 06 May, 2008. With today, bullion metals went up for three straight days. On the other hand, dollar continued to weaken. Silver prices also rose for the day.
Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment.
Comex Gold for June delivery rose $3.6 (0.4%) to close at $877.7 ounce on the New York Mercantile ExchangeLast week, gold prices lost $32 (3.6%) 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 5% for the till date against a 9.3% 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 rose 3 cents (0.02%) to $16.86 an ounce. Silver has gained 13% 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 today, dollar continued to decline pushing crude prices further up. A weak dollar makes oil more attractive as an investment alternative. The dollar index, which measures the greenback against a basket of six major currencies, was at 73.007, down from 73.190 in late Monday.
In the energy market today, crude prices ended near about $121.8/barrel due to supply disruptions at Nigeria. Prices closed higher by $1.9 (1.6%).
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.
At the MCX, gold prices for June delivery closed higher by Rs 136 (1.2%) at Rs 11,600 per 10 grams. Prices rose to a high of Rs 11,649 per 10 grams and fell to a low of Rs 11,462 per 10 grams during the day’s trading.
At the MCX, silver prices for May delivery closed Rs 172 (0.8%) higher at Rs 22,592/Kg. Prices opened at Rs 22,478/kg and went to a high of Rs 22,792/Kg during the day’s trading.
Crude rises for third straight day
Prices add more than $9 in the last three sessions
Crude prices rose by almost $2 once again on Tuesday, 06 May, 2008. Price rose due to supply problems continuing at Nigeria. The weak dollar also pushed up the crude price today. It touched a new high of $122.9/barrel today during the after hours electronic trading. Dollar weakness tends to benefit dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies.
Crude-oil futures for light sweet crude for June delivery closed at $121.84/barrel (higher by $1.9/barrel or 1.6%) on the New York Mercantile Exchange. In the past three sessions, crude prices have gone up by almost $9.3 (8.3%). For the year, crude is up by 25.3% till date.
On the currency markets today, dollar continued to decline pushing crude prices further up. A weak dollar makes oil more attractive as an investment alternative. The dollar index, which measures the greenback against a basket of six major currencies, was at 73.007, down from 73.190 in late Monday.
Nigeria's rebel group Movement for the Emancipation of the Niger Delta, MEND, attacked a Shell oil flow station in the south of the country last weekend. Shell is a unit of Royal Dutch Shell. In recent months, MEND has claimed responsibility for a series of attacks on oil facilities in the Niger Delta.
June natural gas fell 3 cents to $11.15 per million British thermal units.
Against this backdrop, June reformulated gasoline was up 5 cents at $3.11 a gallon and June heating oil fell rose 4 cents to $3.35 a gallon.
EIA reported today that global oil consumption will likely grow by 1.2 million barrels per day this year, but the consumption of liquid fuels and other petroleum is expected to decline by around 190,000 barrels per day because of the economic slowdown and high petroleum prices. The EIA also expects regular gasoline prices to average $3.52 per gallon this year, up 71 cents from a year ago.
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 4,999/barrel, higher by Rs 120 (2.5%) against previous day’s close. Natural gas for July delivery closed at Rs 464.5/mmbtu, higher by Rs 6.6/mmbtu (1.5%).
Aishwarya Telecom Listing
Aishwarya Telecom will List on May 7 2008 (Today). Expect a decent premium
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