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Thursday, May 08, 2008
Reliance Power Futures at a premium
Turnover in F&O segment declines
Nifty May 2008 futures were at 5093, at a premium of 11.30 points as compared to spot closing of 5081.70.
The NSE's futures & options (F&O) segment turnover was Rs 28,943.79 crore, which was lower than Rs 33,563.90 crore on Wednesday, 7 May 2008.
Reliance Power (RPower) May 2008 futures were at premium at 422 compared to the spot closing of 420.45.
Idea Cellular May 2008 futures were near spot price at 106.60 compared to the spot closing of 106.40.
Satyam Computer Services May 2008 futures were at discount at 471.20 compared to the spot closing of 471.70.
In the cash market, the S&P CNX Nifty lost 53.80 points or 1.05% at 5081.70.
Crude Oil Steadies at Record Level; Depress Asian Market Advance
Sydney, Shanghai advances while others traded lower
Asian shares traded mostly lower, with Tokyo's Nikkei 225 Average losing ground on weakness in export stocks, while Australia's benchmark index shrugged off a weaker start to edge into positive territory by late morning although BHP Billiton retreated after drops in commodity prices.
The declines were in line with a weaker finish on Wall Street yesterday, after crude-oil prices surged above $123 a barrel, alarming investors worried about the impact upon consumers and the overall economy. On Wall Street, the Dow Jones Industrial Average fell 206.48 points to end at 12,814.35. The S&P 500 fell 25.69 points to 1,392.57. The Nasdaq Composite fell 44.82 points to 2,438.49.
Crude oil prices advanced as much as 28 cents in after-hours Asian trading to a record $123.81 a barrel. The June contract recently was trading down, at $123.54 a barrel. The contract rose $1.69, or 1.4%, to settle at $123.53 a barrel Wednesday on the New York Mercantile Exchange after touching $123.75.
The Nikkei closed the morning session 1.1% lower at 13,943.26. The Topix index fell 1.5% to 1,372.95 while South Korea's Kospi traded a little lower by 0.3% at 1,848.
Australia's S&P ASX 200 reversed a 0.9% slide in the morning session to end a trade 1% higher at 5,723.20. Meanwhile, Australia's unemployment rate rose to seasonally adjusted 4.2% in April from 4.1% in March. The number of employed rose 25,400.
The Australian Bureau of Statistics said its seasonally adjusted workforce participation rate, or the proportion of working-age persons at work or actively seeking work, rose to 65.4% in April from 65.3% in March.
Hong Kong's Hang Seng Index was down 0.6% at 25,449.79. The Hong Kong China Enterprises Index, or mainland-incorporated shares listed in Hong Kong, eased 1.6% to 13,886.59.
The Shanghai Composite Index reversed an early deficit to climb 2.2% to 3,656.84. Taiwan's Weighted Price Index fell 0.7% to 8,866.62.
Indonesia's Jakarta Composite Index was down 0.2% to 2,376.93, Malaysia's KLSE Composite Index was down 0.5% to 1,280.35.
In currencies, the U.S. dollar was quoted a 104.35-yen, compared to 104.73 yen in late New York trading Tuesday.
European opened on a weaker note, with investors cautious ahead of interest rate decisions due later in the day.
National indexes were also weaker, with the U.K. FTSE 100 index down 0.5% to 6,232.80, the German DAX 30 index down 0.7% to 7,027.38 and the French CAC-40 index down 0.7% to 5,041.11.
Meanwhile, Germany's trade surplus was a touch below from the unrevised estimate of March, while the current account surplus beat forecasts showed Thursday.
According to the data from the Federal Statistics Office Germany's trade surplus totaled EUR16.7 billion in March, down from an unrevised EUR16.9 billion in February.
The current account surplus of Europe's largest economy rose to EUR17.2 billion in March, from an upwardly revised EUR16.1 billion in February. The preliminary reading for February showed a surplus of EUR15.4 billion.
Exports totaled EUR84.0 billion, a 0.2% rise on the year, while imports amounted to EUR67.3 billion, a 3.3% increase from March 2007.
Post Market Commentary - May 8 2008
The domestic market closed in deep red due to heavy selling pressures across the sectoral indices. The market tumbles since the initial bell by tracking the weak cues from the global market and kept on hovering in the negative territory throughout the trading session. Due to lack of investors interest in buying as crude oil price touched a record high of $123 per barrel on Wednesday, led the investors to take cautious approach to book their position UBS, Switzerland largest bank has announced 5,500 job cuts this year contributed to hit the market sentiment. From the sectoral front, the capital goods and banking stocks faced the heavy selling pressures across the counters and FMCG, technology, Oil & Gas, realty and IT stocks also adds to the fall. The market breadth was negative as 1590 stocks closed in red while 1104 stocks closed in green.
The BSE Sensex closed lower by 258.66 points at 17,080.65 and NSE Nifty fell by 53.8 points to close at 5,081.70. The BSE Mid Caps and Small Cap closed lower by 48.14 points and 38.13 points at 7,153.43 and 8,689.04 respectively.
Losers from the BSE are ITC Ltd (5.24%), Satyam Computers (3.72%), Infosys Techonologies (3.44%), L & T (3.36%), ICICI Bank (3.00%), Reliance Energy (2.93%) and TCS (2.33%).
The Capital Goods index declined by 266.43 points to close at 13,375.19. Major losers are Jyoti Structures(4.71%), Kirlosker Br (4.24%), L & T (3.36%), KIR Oil ENG (2.51%), BEML Ltd (2.15%) and Cromton Greaves Ltd (1.79%).
The Bankex index fell by 261.43 points to close at 8755.48 as Kotak Bank (6.41%), BOB (5.651%), Axis bank (4.83%), Union bank (3.69%), ICICI Bank (3.00%), and Yes bank (2.99%) closed in negative territory.
The IT index dropped by 118.84 points to close at 4294.46 as MPHASIS Ltd (3.96%), Satyam Computer (3.72%), Infosys Techonology (3.44%), TCS Ltd (2.33%), Tech Mahindra (2.11%), I-Flex (2.10%), Financial Tech (2.00%), and HCL Tech (1.82%) closed in negative.
The Oil & Gas index closed lower by 95.01 points at 11,628.45. Lossers are RIL Natural Res (3.69%), GAIL India (2.95%), IOC (2.04%) and Reliance Petroleum (1.50%).
The Realty index closed lower by 76.88 points at 8,130.70 Losers are Anant Raj (5.85%), Mahindra Life (5.58%), Pheonox (3.00%), Ansal Infrastructure (2.69%), Housing Development (2.16%), and Penland (1.51%).
NSE Bulk Deal Watch - May 8 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
08-MAY-2008,ALOKTEXT,Alok Industries Limited,SONATA INVESTMENTS LIMITED,BUY,950000,68.30,-
08-MAY-2008,DISHMAN,DISHMAN PHARMA & CHEM LTD,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,BUY,416470,309.50,-
08-MAY-2008,EVERONN,Everonn Systems India Lim,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,81566,883.40,-
08-MAY-2008,EVERONN,Everonn Systems India Lim,B K SHAH CO KETAN BHAILAL SHAH,BUY,69879,868.97,-
08-MAY-2008,DISHMAN,DISHMAN PHARMA & CHEM LTD,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,643023,308.89,-
08-MAY-2008,EVERONN,Everonn Systems India Lim,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,78130,882.65,-
08-MAY-2008,EVERONN,Everonn Systems India Lim,B K SHAH CO KETAN BHAILAL SHAH,SELL,70864,870.08,-
08-MAY-2008,HINDOILEXP,Hind. Oil Exploration ,HARDY OIL AND GAS LIMITED,SELL,890498,150.78,-
08-MAY-2008,IBSEC,Indiabulls Securities Lim,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,1500000,115.97,-
BSE Bulk Deals to Watch - May 8 2008
Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
8/5/2008 517356 ACI INFOCOM DIVYA GUPTA S 99085 5.55
8/5/2008 532975 AISHWARYA TE YES INVESTMENTS B 285000 93.89
8/5/2008 532975 AISHWARYA TE VAGHJIBHAI GAGALDAS SHAH B 113000 95.55
8/5/2008 532975 AISHWARYA TE DESHMUKH VIJAY SURESH B 76728 94.24
8/5/2008 532975 AISHWARYA TE HARISH KUMAR SROTRIYA B 74762 93.62
8/5/2008 532975 AISHWARYA TE OPG SECURITIES PVT LTD B 112247 94.69
8/5/2008 532975 AISHWARYA TE MEHUL V VORA B 100000 93.61
8/5/2008 532975 AISHWARYA TE S.M.NISSAR B 1151483 92.93
8/5/2008 532975 AISHWARYA TE SANGEETA KAKANI B 93419 95.36
8/5/2008 532975 AISHWARYA TE VAIBHAV DOSHI B 240918 91.77
8/5/2008 532975 AISHWARYA TE PATEL INVESTMENTS B 60385 93.04
8/5/2008 532975 AISHWARYA TE HARDIK HARSHADBHAI SHAH B 80861 95.56
8/5/2008 532975 AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. B 704662 92.86
8/5/2008 532975 AISHWARYA TE ANILKUMAR MITTAL HUF B 120000 95.11
8/5/2008 532975 AISHWARYA TE PRUTHVI BROKERS AND SHARE HOLDINGS PVT LTD B 326608 96.97
8/5/2008 532975 AISHWARYA TE N D NISSAR B 918905 92.22
8/5/2008 532975 AISHWARYA TE LATIN MANHARLAL SEC PVT LTD B 1310703 93.25
8/5/2008 532975 AISHWARYA TE FAISAL T P B 56000 93.34
8/5/2008 532975 AISHWARYA TE CHANDRA MOHAN K B 70000 94.49
8/5/2008 532975 AISHWARYA TE SHASHVAT B 61011 90.79
8/5/2008 532975 AISHWARYA TE BHAVESH P PABARI B 59149 96.00
8/5/2008 532975 AISHWARYA TE H.J.SECURITIES PVT.LTD. B 207060 92.64
8/5/2008 532975 AISHWARYA TE MANOJ NANDKISHOR TEKRIWAL B 200000 96.75
8/5/2008 532975 AISHWARYA TE SHAH SAMIR D B 100000 97.00
8/5/2008 532975 AISHWARYA TE GOLDSTAR FINVEST PVT LTD B 149472 99.00
8/5/2008 532975 AISHWARYA TE BUNIYAD CHEMICAL LIMITED B 489665 97.90
8/5/2008 532975 AISHWARYA TE ALPHA CHEMIC TRADE AGENCIES B 169357 92.87
8/5/2008 532975 AISHWARYA TE P UMAMAHESHWARI B 206489 95.90
8/5/2008 532975 AISHWARYA TE SANJAY POPATLAL JAIN HUF B 464173 92.90
8/5/2008 532975 AISHWARYA TE NAVEEN TAPARIA B 131286 93.22
8/5/2008 532975 AISHWARYA TE BHUPENDRA SINGH CHOUHAN B 120997 96.64
8/5/2008 532975 AISHWARYA TE VIRENDRA KUMAR AGRAWAL B 100000 86.70
8/5/2008 532975 AISHWARYA TE AMU SHARES AND SEC LTD B 90292 93.73
8/5/2008 532975 AISHWARYA TE YATIN SATRA B 201165 92.72
8/5/2008 532975 AISHWARYA TE MUKESH SHAH B 340598 92.99
8/5/2008 532975 AISHWARYA TE MANISH CHATURVEDI B 87000 92.75
8/5/2008 532975 AISHWARYA TE YES INVESTMENTS S 285000 92.40
8/5/2008 532975 AISHWARYA TE VAGHJIBHAI GAGALDAS SHAH S 155000 94.33
8/5/2008 532975 AISHWARYA TE DESHMUKH VIJAY SURESH S 76728 93.93
8/5/2008 532975 AISHWARYA TE HARISH KUMAR SROTRIYA S 74762 93.85
8/5/2008 532975 AISHWARYA TE HARSHAD B PATEL S 53500 96.12
8/5/2008 532975 AISHWARYA TE OPG SECURITIES PVT LTD S 112247 94.70
8/5/2008 532975 AISHWARYA TE MEHUL V VORA S 100000 96.87
8/5/2008 532975 AISHWARYA TE S.M.NISSAR S 1151483 93.04
8/5/2008 532975 AISHWARYA TE SANGEETA KAKANI S 93419 95.55
8/5/2008 532975 AISHWARYA TE VAIBHAV DOSHI S 255918 91.48
8/5/2008 532975 AISHWARYA TE HEMANT MADHUSUDAN SHETH S 75000 95.49
8/5/2008 532975 AISHWARYA TE PATEL INVESTMENTS S 65385 91.51
8/5/2008 532975 AISHWARYA TE HARDIK HARSHADBHAI SHAH S 80861 95.36
8/5/2008 532975 AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. S 704662 93.04
8/5/2008 532975 AISHWARYA TE ANILKUMAR MITTAL HUF S 120000 97.54
8/5/2008 532975 AISHWARYA TE PRUTHVI BROKERS AND SHARE HOLDINGS PVT LTD S 326608 93.91
8/5/2008 532975 AISHWARYA TE N D NISSAR S 918905 92.35
8/5/2008 532975 AISHWARYA TE LATIN MANHARLAL SEC PVT LTD S 1306703 93.32
8/5/2008 532975 AISHWARYA TE FAISAL T P S 56000 93.76
8/5/2008 532975 AISHWARYA TE CHANDRA MOHAN K S 70000 93.33
8/5/2008 532975 AISHWARYA TE SHASHVAT S 61011 94.15
8/5/2008 532975 AISHWARYA TE BHAVESH P PABARI S 59149 97.52
8/5/2008 532975 AISHWARYA TE H.J.SECURITIES PVT.LTD. S 207060 92.89
8/5/2008 532975 AISHWARYA TE MANOJ NANDKISHOR TEKRIWAL S 200000 94.12
8/5/2008 532975 AISHWARYA TE SHAH SAMIR D S 100000 92.26
8/5/2008 532975 AISHWARYA TE GOLDSTAR FINVEST PVT LTD S 149472 95.57
8/5/2008 532975 AISHWARYA TE BUNIYAD CHEMICAL LIMITED S 489665 93.41
8/5/2008 532975 AISHWARYA TE ALPHA CHEMIC TRADE AGENCIES S 169357 95.03
8/5/2008 532975 AISHWARYA TE P UMAMAHESHWARI S 206489 93.81
8/5/2008 532975 AISHWARYA TE SANJAY POPATLAL JAIN HUF S 464173 92.91
8/5/2008 532975 AISHWARYA TE NAVEEN TAPARIA S 131286 92.46
8/5/2008 532975 AISHWARYA TE BHUPENDRA SINGH CHOUHAN S 120997 96.16
8/5/2008 532975 AISHWARYA TE AMU SHARES AND SEC LTD S 90292 93.82
8/5/2008 532975 AISHWARYA TE YATIN SATRA S 201165 92.62
8/5/2008 532975 AISHWARYA TE MUKESH SHAH S 340598 93.33
8/5/2008 532975 AISHWARYA TE MANISH CHATURVEDI S 87000 94.17
8/5/2008 531223 ANJANI SYNTH ARVIND KALYANJI RAMBHIA B 84868 34.72
8/5/2008 531223 ANJANI SYNTH SAMIDHA MERCANTILES PVT LTD S 71000 34.75
8/5/2008 532870 ANKIT METAL MORGAN STANLEY MAURITIUS CO LTD B 737000 87.99
8/5/2008 532946 BANG MARUTI SECURITIES LTD S 95532 227.74
8/5/2008 590059 BIHAR TUBES SPJ STOCK B 133140 156.93
8/5/2008 590059 BIHAR TUBES SHIVALIK SECURITIES LTD S 101000 150.36
8/5/2008 590059 BIHAR TUBES GALA FINANCE AND INVESTMENT S 49000 150.58
8/5/2008 590059 BIHAR TUBES SPJ STOCK S 133140 158.13
8/5/2008 590059 BIHAR TUBES IGSL TRADING ACCOUNT S 73096 160.30
8/5/2008 531682 CAT TECHNOL CHERRY COSMETICS PVT LTD B 300000 7.97
8/5/2008 531682 CAT TECHNOL EDELWEISS ESTATES PRIVATE LIMITED S 286479 7.97
8/5/2008 532271 CYBERMAT INF EDELWEISS ESTATES PRIVATE LIMITED B 389300 6.62
8/5/2008 532271 CYBERMAT INF NEWGEN INTERNATIONAL PVT LTD S 528038 6.37
8/5/2008 532271 CYBERMAT INF EDELWEISS ESTATES PRIVATE LIMITED S 538981 6.56
8/5/2008 530077 FRESHTROP FR RAJIV ARORA B 89341 67.65
8/5/2008 530077 FRESHTROP FR RAJIV ARORA S 76298 69.17
8/5/2008 531439 GOLDSTON TEC BULL INVESTMENTS MADRAS PVT LTD B 131000 223.43
8/5/2008 531084 INDOCASTLE M JAGO INDIA ADVISORY PRIVATE LI B 97000 15.85
8/5/2008 531084 INDOCASTLE M SUNITA AGARWAL S 96073 15.85
8/5/2008 500214 ION EXCHANGE ASHISH KACHOLIA B 125000 221.61
8/5/2008 516078 JUMBO BAG LT RINA ASHISHBHAI SHAH B 70000 42.79
8/5/2008 516078 JUMBO BAG LT CHETAN V MEHTA HUF S 63045 44.67
8/5/2008 516078 JUMBO BAG LT SURESH V HEHTA HUF S 47000 43.67
8/5/2008 532283 KASHYAP TEC OM EDUCATION IT PVT LTD B 2396073 2.00
8/5/2008 532283 KASHYAP TEC OM EDUCATION IT PVT LTD S 2583073 2.01
8/5/2008 531602 KOFF BR PICT DEEPAL CORPORATION B 84973 17.39
8/5/2008 500271 MAX INDIA L. HSBC GLOBAL INVESTMENT FUNDS MAU LTD B 2935532 149.00
8/5/2008 500271 MAX INDIA L. CITIGROUP GLOBAL MKT MAURITIUS PVT LTD S 1533852 149.00
8/5/2008 514300 PIONER EMBRO SHETTY MANISH NARAYANBHAI B 100200 99.87
8/5/2008 514300 PIONER EMBRO GOPAL TRADERS B 100000 100.00
8/5/2008 514300 PIONER EMBRO ANAND YOGESH SHARES AND CONSULTANCY PVT LTD B 144500 102.00
8/5/2008 514300 PIONER EMBRO DIPAK R RATHOD B 177000 99.99
8/5/2008 514300 PIONER EMBRO SHETTY MANISH NARAYANBHAI S 100200 101.87
8/5/2008 514300 PIONER EMBRO DIPAK R RATHOD S 177000 102.00
8/5/2008 514300 PIONER EMBRO MORGAN STANLEY MAURITIUS CO LTD S 649580 100.00
8/5/2008 531219 POONAM PHARM SWARN GANGA TRADING PVT. LTD. B 50000 3.56
8/5/2008 531219 POONAM PHARM ANUSHREE TRADE LINK PVT LTD B 200000 3.45
8/5/2008 523425 SUNRAJ DIA E SUNNY SUNIL GANDHI B 645600 9.25
8/5/2008 523425 SUNRAJ DIA E SUNRAJ INV AND FIN PVT LTD S 645600 9.25
8/5/2008 532966 TITAGARH WAG OPG SECURITIES PVT LTD B 189414 803.73
8/5/2008 532966 TITAGARH WAG OPG SECURITIES PVT LTD S 189414 804.13
8/5/2008 590048 TYCHE PERIPH PRADEEP PASARI B 300000 89.38
8/5/2008 511147 WALL STREE F NATASHA CONSTRUCTION PVT. LTD. S 118100 39.75
Market slips on weak global indices
Weak international market trend weighed on domestic indices. The Sensex dropped 259 points during intra-day trades and nearly slipped below 17,081 on relentless selling pressure. Even as oil prices in the global markets preceded from their recent highs, investors across the globe tracked concerns of inflationary pressures in the US and hence dumped their respective indices. After resuming 126 points lower at 17,213, the Sensex languished in negative in the first half and plunged deep in red in noon trades to touch the day's low of 17,038 on selling in Bankex, IT and FMCG select heavyweights. The Sensex finally ended the session with losses of 259 points at 17,081, while the Nifty tumbled 54 points to close at 5,082.
,br> The market breadth was weak. Of the 2,746 stocks traded on the BSE, 1,593 stocks declined, 1,102 stocks advanced and 51 stocks ended unchanged. Other than BSE Metal index, rest of the sectoral indices lost ground. BSE Bankex index dropped 2.90% at 8,755, BSE IT index shed 2.69% at 4,294 and BSE FMCG index was down 2.60% at 2,445.
,br> Bankex stocks came under sharp hammering. KMFL shed 6.41% at Rs782.40, BoB fell 5.51% at Rs300.05, Axis Bank declined 4.83% at Rs863.35 and Bank of India was down nearly 4.38% at Rs324. Among the other Sensex losers, ITC dipped 5.24% at Rs215.05, Satyam Computer Services slipped 3.72% at Rs471.10, Infosys dropped 3.44% at Rs1,779.80, L&T slumped 3.36% at Rs2,886 and ICICI Bank shed 3% at Rs891.30. Tata Steel, however, rose 2.51% at Rs845.65, Bharti Airtel advanced 1.45% at Rs827.60 and ACC moved up 0.82% at Rs743.25.
,br> IT stocks witnessed selling pressure. Mphasis declined 3.96% at Rs219.65, TCS lost 2.33% at Rs943.70, Tech Mahindra shed 2.11% at Rs932.15 and I-Flex slipped by 2.10%% at Rs1,316.55.
,br> Over 7.71 crore Aishwarya Tele shares changed hands on the BSE followed by IFCI (1.42 crore shares), Ispat Industries (1.14 crore shares), Kasyap (87.10 lakh shares) and RNRL (83.40 lakh shares).
Banking, IT shares lead 259 points Sensex fall
The market succumbed to selling pressure today as weak global equities and soaring crude oil prices worried investors. All the sectoral indices on BSE, barring the BSE Metal index, were in the red. Software and banking shares were worst hit in today's fall.
European markets, which opened after Indian markets, were trading lower. Key indices in UK, France and Germany were down by 0.36% to 0.52%.
Asian markets, which opened before Indian market, were trading mostly in red today, 8 May 2008. Key indices in Hong Kong, Japan, Singapore, South Korea and Taiwan were down by 0.32% to 1.13%. However, China’s Shanghai Composite was up 2.17%.
US markets suffered sharp losses on Wednesday, 7 May 2008, on worries about inflation and higher interest rates as oil jumped to a record. Financials stocks took a beating on concerns that new disclosure requirements for investment banks will limit their profits. The Dow Jones industrial average slumped 206.48 points, or 1.59%, to 12,814.35. The Nasdaq Composite index fell 44.82 points, or 1.80%, to 2,438.49. The S&P 500 shed 26 points at 1,393.
Oil prices for June 2008 delivery fell 6 cents to $123.47 a barrel in electronic trading on the New York Mercantile Exchange today, 8 May 2008, in Asia after jumping to a record of $123.93 a barrel yesterday, 7 May 2008.
The 30-share BSE Sensex fell 258.66 points or 1.49% at 17,080.65. The index lost 301.28 points at day’s low of 17,038.03, hit in the early afternoon trade. Sensex lost 126.7 points at day's high of 17,212.61 hit in early trade.
The broader based S&P CNX Nifty fell 53.8 points or 1.05% at 5081.70. Nifty May 2008 futures were at 5093, a premium of 11.3 points as compared to spot closing.
The market breadth was weak on BSE with 1102 shares advancing as compared to 1593 stocks that declined. 51 stocks remained unchanged.
The BSE Mid-Cap index was down 0.67% at 7,153.43 and the BSE Small-Cap index was down 0.44% at 8,689.04. Both the indices outperformed the Sensex.
BSE clocked a turnover of Rs 5904 crore as against Rs 6,622.02 crore on Wednesday, 7 May 2008. The NSE's futures & options (F&O) segment turnover was Rs 28,943.79 crore, which was lower than Rs 33,563.9 crore on Wednesday, 7 May 2008.
India's biggest private sector firm by market capitalisation and oil refiner Reliance Industries fell 0.79% to Rs 2661.05.
India's biggest cigarette maker by revenue ITC slumped 5.24% to Rs 215.05.
The BSE IT index underperformed the Sensex, falling 2.69% to 4,294.46. Mphasis (down 3.96% at Rs 219.65), Satyam Computer (down 3.72% at Rs 471.10), TCS (up 2.33% at Rs 943.70), HCL Technologies (down 1.82% at Rs 288.05) and Wipro (down 0.40% at Rs 0.40% at Rs 497.15), slipped.
India's second largest software exporter by sales Infosys Technologies fell 3.44% at Rs 1,779.80.
The BSE Bankex index underperformed the Sensex, falling 2.90% to 8,755.48. Kotak Mahindra bank (down 6.41% at Rs 782.40), Bank of Baroda (down 5.51% at Rs 300.05), Axis Bank (down 4.83% at Rs 863.35), HDFC Bank (down 2.24% at Rs 1,508.40), and State Bank of India (down 2.17% at Rs 1,729.80), tumbled.
India's biggest private sector lender by assets ICICI Bank fell 3% to Rs 891.30.
The BSE Metal index outperformed the Sensex, gaining 0.19% to 15,843.27. Tata Steel (up 2.51% at Rs 845.65), Welspun Gujarat Stahl Rohren (up 1.89% at Rs 409.60), Bhushan Steel (up 0.93% at Rs 790), Sesa Goa (up 0.89% at Rs 4,028.20), and Hindalco Industries (up 0.17% at Rs 180.05), moved higher.
Among the side counter, Moser Baer (up 8.08% at Rs 191.30), United Phosphorus (up 5.19% at Rs 349.35), Aban Offshore (up 5.03% at Rs 3,811.10), Great Offshore (up 5.03% at Rs 708.65) and IFCI (up 3.57% at Rs 60.85), soared.
Stocks from the side counters that declined were, Sintex Industries (down 6% at Rs 435), Indiabulls Financial Services (down 5.98% at Rs 491), Reliance Industrial Infrastructure (down 5% at Rs 1,465.90), and Lanco Infratech (down 5% at Rs 506.15).
Tata Communications rose 3.07% to Rs 502.50 on reports the government is planning to divest its residual 26.12% stake in the company.
India's third largest listed cellular services provider by sales Idea Cellular rose 2.41% to Rs 106.40. The firm slashed its long-distance call rates and roaming charges.
Mid-day Multimedia, which publishes a tabloid, gained 2.10% to Rs 34. The firm reported net profit of Rs 0.23 crore in the Q4 March 2008 as compared to net loss of Rs 2.88 crore in Q4 March 2007. Sales declined 2.19% to Rs 27.24 crore in Q4 March 2008 over Q4 March 2007.
Aishwarya Telecom clocked the highest turnover of Rs 722.21 crore on BSE. Reliance Power (Rs 250.45 crore), Reliance Capital (Rs 171.71 crore), Tata Steel (Rs 160.78 crore) and Cairn India (Rs 155.39 crore), were the other turnover toppers on BSE in that order.
Aishwarya Telecom reported the highest volume of 7.71 crore shares on BSE. IFCI (1.42 crore shares), Ispat Industries (1.14 crore shares), Kashyap Technologies (87.10 lakh shares) and Reliance Natural Resources (83.40 lakh shares), were the other volume toppers on BSE in that order.
Pre Session Commentary - May 8 2008
The Indian Market is likely to have a negative opening as the US market close in red while the Asian market are trading on the back foot. On Wednesday, the Indian market continued its previous day losing trend to close in negative. The investors did not showed their active participation during the trading session as the cues from the global markets like the surging crude oil prices above $121 a barrel led the investors to take cautious steps to book their further positions. The market opened with marginal gains but fell soon after the start, however the market gathered the momentum towards the mid session to recover from the fall but unable to sustain at the higher levels and fell to close on the back foot. The capital goods stocks remained in the limelight as most selling was reported from this basket. 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. We expect that the market may decline further during the trading session.
On Wednesday, the US market closed in red. The Dow Jones Industrial Average (DJIA) closed lower by 206.48 points at 12,814.35 along with S&P 500 fell by 25.69 points to close at 1,392.57 and NASDAQ dropped by 44.82 points to close at 2,438.49.
Indian ADRS closed in red. In technology sector, Satyam fell by 6.31% along with Wipro by 5.85%. Infosys by 5.59% and Patni Computers by 0.61%. In banking sector, HDFC bank and ICICI bank dropped by (5.81%) and (2.38%) respetively. In telecommunication sector, MTNL and Tata Communication slipped by (5.71%) and (4.22%). Sterlite industries declined by (4.29%).
Today the major stock markets in Asia are trading in negative. Japan’s Nikkei is trading lower by 123.54 points at 13,978.94 along with Han Seng index trading down by 59.49 points at 25,550.72 and Taiwan Weighted trading at 8,876.97 down by 49.37 points.
The FIIs on Wednesday stood as net seller in equity. The gross equity purchased was Rs3,099.00 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,827.80 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs728.80 Crore) and net debt was Rs0.00 Crore.
Today, Nifty has support at 5,002 and resistance at 5,201 and BSE Sensex has support at 16,926 and resistance at 17,492.
Market headed for weak start
Local market are braced for weak start tracking negative global cues. Also the impact of spiralling crude oil prices, which struck a fresh record just under $124 a barrel yesterday, 7 May 2008, on inflation will continue to weigh on investor sentiment.
Oil prices for June delivery fell 6 cents to US$123.47 a barrel in electronic trading on the New York Mercantile Exchange today, 8 May 2008, in Asia after jumping to a record of $123.93 a barrel yesterday, 7 May 2008.
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 1564 companies showed 18.30% rise in net profit on 22.60% rise in net sales in Q4 March 2008 over Q4 March 2007, so far. There was 29.60% rise in net profit on 23.40% rise in net sales in the year ended March 2008 over year ended March 2007.
Asian markets were trading lower today, 8 May 2008, as financial stocks slipped. Shanghai Composite (down 0.05% at 3,577.35), Hang Seng (down 0.23% at 25,550.72), Japan's Nikkei 225 average (down 0.88% at 13,978.94), Straits Times (down 1.35% at 3,185.36), Taiwan Weighted (down 0.55% at 8,876.97) and Seoul Composite (down 0.02% at 1,852.97) declined.
US markets suffered sharp losses yesterday, 7 May 2008, led by financials and spiraling crude prices. Financials stocks took a beating on concerns that new disclosure requirements for investment banks will limit their profits. The Dow Jones industrial average slumped 206.48 points, or 1.59%, to 12,814.35. The Nasdaq Composite index fell 44.82 points, or 1.80%, to 2,438.49. The S&P 500 shed 26 points at 1,393.
Back home, the 30-share BSE Sensex fell 33.70 points or 0.19% at 17,339.31 and the broader based S&P CNX Nifty slipped 9.15 points or 0.18% at 5135.50, yesterday 7 May 2008.
As per provisional data, foreign funds bought shares worth a net Rs 88.30 crore yesterday, 7 May 2008. Domestic funds bought shares worth a net Rs 234.83 crore on that day.
Foreign institutional investors (FIIs) were net sellers of Rs 232.94 crore in the futures & options segment yesterday 7 May 2008. They were net sellers of index futures to the tune of Rs 156.68 crore and bought index options worth Rs 48.59 crore. They were net sellers of stock futures to the tune of Rs 170.83 crore and bought stock options worth Rs 45.98 crore.
Morning Call - May 8 2008
Nifty at a support of 5080 and 5010 resist of 5150 and 5171
F&O:
Sell: Axis bank below 908 tgt of 875 SL of 919
Buy: Ril above 2650 tgt of 2700 SL of 2635
Out House :
Markets at a support of 17173 & 17021 and resistance at 17491 & 17571 levels .
Buy : MRPL & RPL at dips
Buy : RIL
Buy : Infy & TCS at dips
Buy : SBIN
Buy : BombayDye at dips
Buy : SKumar
Buy : Coreproject at dips
Dark Horse : NTPC , EssarOIL , INFY , CORE, BombayDye , GujNRE & RPL
US Market back in the red
Indices plunge in the final hours of trading as crude marks a new record
US Market was back in the red today, Wednesday, 07 May, 2008. Crude prices soaring above $123/barrel once again sent a vibe of negative feeling across the market. Each of the ten major economic sectors finished lower. Financials led the group of negatives.
The Dow was down by almost 70 points earlier in the day. But in the last hour of trading, indices took a massive plunge. At the end, going into close, The Dow Jones industrial Average ended the day with a loss of 206 points at 12,814. The Nasdaq Composite Index, finished lower by 44.8 points at 2,438.4. S&P 500 finished lower by 25.6 points at 1,392.7.
Twenty-four out of thirty Dow components ended in the red today. The financial stocks took the largest dips – AIG, American Express and Citigroup. Walt Disney was one of the main Dow winners.
Among major economic news of the day, first quarter nonfarm productivity rose at a 2.2% annual rate, which was more than the consensus estimate of 1.5%. Unit labor costs, an inflation gauge, registered a 2.2% rate of increase. That was better than the expected 2.6% rate of growth.
The National Association of Realtors announced in a separate report that March U.S. pending home sales fell 1.0% month-over-month on a seasonally adjusted annual rate. The decline was in-line with expectations. February sales were revised lower to a decrease of 2.8% from the previous reading, which showed a 1.9% slide.
On the earnings front, tech bellwether Cisco announced better than expected earnings after Tuesday's close. The company reported earnings topping expectations by two cents. Cisco also issued in-line guidance for its upcoming quarter and also acknowledged U.S. markets had weakened.
Walt Disney shares were up almost 3% today after the entertainment giant reported a 21% rise in profit for the second quarter of fiscal 2008.
Crude-oil futures touched a fresh record above $123 today following a U.S. government report which showed that crude supplies climbed for a third week in a row, but that refinery capacity declined. Price fell immediately after the data was released but soon it started spiraling up and closed $1.5/barrel higher for the day. Prices for crude oil have been hovering around $122 against a backdrop of disruptions to oil production in Nigeria.
Crude-oil futures for light sweet crude for June delivery closed at $123.53/barrel (higher by $1.69/barrel or 1.4%) on the New York Mercantile Exchange. Price dropped to $119 earlier during the day. In the past four sessions, crude prices have gone up by almost $11 (9.7%). For the year, crude is up by 26.7% till date.
EIA reported today that crude supplies rose 5.7 million barrels to 325.6 million for the week ended 2 May. Supplies of oil have now climbed a total of 11.9 million barrels over the past three weeks.
For tomorrow, the weekly jobless claims report is due prior to the session's start. The Wholesale Trade report for March is due subsequently.
Trading Calls - May 8 2008
Nifty (5136) Sup 5070 Res 5175
Buy Tata Communication (489) SL 483 Target 502, 505
Buy Renuka Sugars (134) SL 130 Target 140, 143
Sell Jindal Steel & Power (2276) SL 2300 Target 2230, 2215
Sell NALCO (444) SL 449
Target 435, 432
Sell SAIL (173) SL 177
Target 166, 164
Reform your thoughts!
Whenever you find that you are on the side of the majority, it is time to reform.
The bulls, who were in form last month, may soon need to reform. The worries are slowly catching up. Crude oil has been hitting record highs for the past few days and $150 seems realistic. With too much concentration on US market closings and Asian openings, there seems to be no time to sit back and think much about the local market scenario. It's still not too late to take a summer holiday. The recent run-up should have given one ample opportunities to exit some shaky counters. While mid-cap and small-cap shares may have outperformed, remember, on the downside they are the ones which get battered out of shape. We reiterate that one should selectively allocate larger portion of one's funds to large caps and ride the smaller stocks for short periods only. One should avoid aggressive buying at this juncture and should lock in some gains at every rally as the short-term outlook still remains murky.
Today, we see the market extending this week's fall due to weakness in US and Asian stocks, and oil prices hitting new record high. Indian ADRs tumbled, losing between 2-6.5%. The dearth of any near-term positive triggers coupled with erratic movement in FII flows and local inflation concerns would also keep the bulls on tenterhooks. The market is likely to consolidate for a while before breaking out on either side. We maintain that the key indices will remain rangebound within a few hundred points in the near term, as investors take stock of the situation after last month's rally. A major crash may not happen unless we get fresh bout of bad news from overseas or local markets. A stock specific approach is perhaps the most prudent way of tackling the current uncertainties.
FIIs were net buyers of Rs883mn (provisional) in the cash segment yesterday while local institutions too pumped in Rs2.35bn. In the F&O segment, foreign funds were net sellers of Rs2.33bn. On Tuesday, FIIs were net sellers of Rs7.29bn in the cash segment. Mutual Funds were net sellers of Rs265mn on the same day.
Results Today: Ashok Leyland, Birla Corp, Electrotherm, GIC Housing Finance, Hindustan Motors, JB Chemicals and Voltamp Transformers.
Asian stocks are mostly down this morning, led by financial companies. Mizuho Financial Group, Japan's third-largest publicly traded bank, and Kookmin Bank, South Korea's biggest bank, led the declines among regional lenders.
The MSCI Asia Pacific Index lost 0.8% to 150.35 as of 10:22 a.m. in Tokyo, with more than twice as many shares retreating for each that gained. Financial shares were the biggest drag among the benchmark's 10 industry groups.
The Nikkei in Tokyo was down 123 points or 0.9% at 13,978 while the Hang Seng in Hong Kong shed 88 points or 0.3% to 25,522. The Kospi in Seoul was flat at 1853 while the Straits Times in Singapore lost 37 points or 1.15% to 3191.
The Shanghai Composite in China was down 14 points to 3565 while the Taiex in Taiwan dropped 50 points or 0.6% to 8875. Australia's S&P/ASX 200 Index gained 48 points or 0.85% to 5716.
US stocks declined the most in a month, with the Dow Jones Industrial Average losing over 200 points. Crude oil prices rose above US$123 per barrel to a new record, heightening worries about the impact on consumers as well as the overall economy.
The S&P 500 slumped 25.69 points, or 1.8%, to 1,392.57. The Dow slid 206.48 points, or 1.6%, to 12,814.35. The Nasdaq Composite Index dropped 44.82 points, or 1.8%, to 2,438.49.
Market breadth was negative. Five stocks fell for each that rose on the New York Stock Exchange.
Financial shares fell on concern that new disclosure requirements for investment banks will limit their profits. Merrill Lynch and Lehman Brothers sent brokerages and lenders tumbling after the SEC said it will require Wall Street firms to disclose capital and liquidity levels.
The move comes after the market regulator was criticized for regulatory lapses in the wake of the Bear Stearns' collapse. Equity market losses accelerated after the SEC's announcement.
US light crude oil for June delivery settled at a record US $123.53 a barrel on the New York Mercantile Exchange, after hitting a trading high of US $123.75 a barrel earlier. Prices had been volatile after the weekly inventories report showed a surprise rise in both crude and gas supplies.
The national average price for a gallon of regular unleaded gas rose to US $3.618 from US $3.610 the previous day, according to AAA.
The dollar rose versus the euro and slipped against the yen. COMEX gold for June delivery fell US $6.7 to settle at US $8.71 an ounce. Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.84% from 3.92%.
Economic reports showed further weakness in housing and some strength in worker productivity. The productivity report's inflation component eased, but with record oil and gas prices, worries about pricing pressure remain a drag.
Fourteen of 15 homebuilders in S &P indexes fell on a National Association of Realtors report that fewer Americans bought previously owned homes in March.
The Federal Reserve said that consumers took on more debt in March, adding on US$15.2bn during the month, or a 7.2% annual rate, to US$2.56 trillion. According to some analysts, the data shows a big run-up in credit card debt.
Walt Disney shares gained 2.9% after the entertainment giant reported a 21% rise in profit for the second quarter of fiscal 2008.
Clearwire and Sprint Nextel are combining their wireless units to create a new company called Clearwire. The US $14.55bn deal is backed by Intel, Google, Comcast, Time Warner Cable and Bright House Networks, and will give the companies a stake in the new venture.
Signs that the world's largest economy has turned a corner, or is very close to doing so, have reassured investors of late, as have indications that the worst of the financial market mess may be over.
The Wall Street will probably stick to a trading range over the next few months. Thursday brings reports on March wholesale inventories and the weekly jobless claims. There are no market-moving earnings due in the morning.
European equity markets ended firm. Strong gains for technology companies and automakers helped shares build on early momentum generated over favorable earnings reports. The pan-European Dow Jones Stoxx 600 index rose 0.8% to 329.35, moving higher after two days of losses. Germany's DAX 30 advanced 0.8% to 7,076.25, while the French CAC-40 rose 0.7% to 5,075.31 and the UK's FTSE 100 added 0.7% to 6,261.
In the emerging markets, the Bovespa in Brazil was down 1.7% at 69,017 while the IPC index in Mexico fell 1.5% to 30,762. The RTS index in Russia rallied 2.2% to 2201 and the ISE National 30 in Turkey gained 0.9% at 53,602.
Sideways movement to continue
Markets ended on a flat note as bulls managed to make a come back towards the last hour of the trading session. It was the positive cues coming in from the European markets and media reports stating that monsoon is likely to hit Kerala coast by May 20-25 lifted the sentiments on Dalal-Street.
However, despite a come back the Nifty index was unable to breach the 200 DMA as again it faced stiff resistance. With crude oil trading at an all time record high US$123 per barrel, oil exploration companies like Cairn India, Hind Oil Exploration recorded smart gains. The IT and FMCG stocks closed with marginal gain. However, Capital Good and Realty stocks were under pressure.
Finally, the BSE benchmark Sensex ended 33 points lower to close at 17,339 and the Nifty index lost 9 points to close at 5,135.
Overall about 1,167 stocks advanced; 1,534 stocks declined while 63 stocks remained unchanged. Among the 50-Nifty 29 stocks ended in red and 21 stocks ended in green.
Gokaldas Exports 12% to Rs232. The company clarified that the said news report "Blackstone Group mulls taking Gokaldas Exports private" is purely speculative. There are no such discussions in the Board and no official of Gokaldas Exports Ltd & Blackstone have given any Press statements of this nature. Company made this announcement with reference to the news item appearing in a leading financial daily titled "Blackstone Group mulls taking Gokaldas Exports private"
The scrip touched an intra-day high of Rs248 and a low of Rs219 and recorded volumes of over 1,00,000 shares on BSE.
Tata Steel gained b a percent to Rs824. The company announced that along with Brazilian mining giant Vale and other JV partners it would undertake a massive expansion of the Carborough Downs Coal Mine in Australia for about US$379.4mn.The commencement of construction is scheduled for May 2008 and commissioning of the new mining equipment (Longwall) is expected by mid 2009." The scrip touched an intra-day high of Rs839 and a low of Rs812 and recorded volumes of over 20,00,000 shares on BSE.
Ashok Leyland slipped by 2.2% to Rs41 after the company’s April sales slipped 2.5% to 5705 units. The scrip touched an intra-day high of Rs43 and a low of Rs41 and recorded volumes of over 21,00,000 shares on BSE.
Power Grid slipped by 1.5% to Rs103. There were, reports stating that the company is looking for consultancy business in Nigeria and Dubai; plans capital expenditure of Rs80.4bn in current fiscal year. The scrip touched an intra-day high of Rs105 and a low of Rs102 and recorded volumes of over 8,00,000 shares on BSE.
Glenmark Pharma surged by over 5% to Rs672 after reports stated that the company launched its antifungal cream Onabet in India. The scrip touched an intra-day high of Rs697 and a low of Rs642 and recorded volumes of over 3,00,000 shares on BSE.
Union Bank of India was up by a percent to Rs173 after the company announced its FY08 net profit at Rs13.9bn (64.4%). The company also said that it would pay 40% dividend. There was also a buzz that it plans to issue shares on right basis and has sought permission from the government. The scrip touched an intra-day high of Rs177 and a low of Rs172 and recorded volumes of over 8,00,000 shares on BSE.
The IT stocks further gained momentum as the rupee further depreciated against the US Dollar hitting a high of Rs41.31 per dollar. Index heavyweight TCS was up by 3% to Rs966, Infosys gained by 1.2% to Rs1843, Hexaware advanced by 0.2% to Rs71 and Wipro added 0.2% to Rs499.
The Metal stocks lost their shine after the government asked steelmakers to cut prices by Rs4,000 per ton. SAIL slipped by 3.3% to Rs173, Sesa Goa declined by 5.5% to Rs3992, Gujarat NRE Coke dropped by over 3% to Rs149 and Ispat Industries lost by 2% to Rs34.
Corporate News
The Government to divest residual 26.12% stake in Tata Communication (erstwhile VSNL). (BS)
The MTN Group to seek a non-compete agreement with Bharti Airtel. (BS)
Tata Steel and Vale to invest Rs15.6bn for the mega expansion work planned in Australia, starting later this month. (BS)
RIL and Essar Oil to bid for ONGC's unviable Kakinada refinery. (BS)
UB group drags Heineken to court, seeks termination of special grants given to foreign company. (ET)
LIC to dilute it’s holding in IFCI and is awaiting cues from the government on its future strategy. (BS)
RIL in talks with power and oil distribution companies for lease of optic fibre network. (ET)
L&T moves the SC challenging the Delhi High Court order that directed ONGC to consider Malaysia-based Ramunia Fabricators' bid for development of an oil field in Mumbai offshore. (Mint)
Cadila Pharmaceuticals to set up eight units in its upcoming Pharma SEZ near Ahmedabad. (BS)
Solar Semiconductor forms strategic partnership with Motech Industries of Taiwan for supply of PV cells worth about US$360mn. (BS)
Infosys BPO to set up KPO hub in Gurgaon. (BS)
The Centre may clear Essar Power's Rs80bn FDI plan. (ET)
GMDC plans to leverage its coal-control capabilities into a four-way business foray into cement, power, SEZ and port in Gujarat. (BL)
United Spirits to launch refurbished flagship brand McDowell's No 1 in Maharashtra. (ET)
Consortiums lead by Videocon Industries to set up a multi-product industrial park and a 1,320 MW thermal power plant in the West Godavari District of Andhra Pradesh. (BL)
Promoters of DLF Assets, lend more than Rs11bn worth of interest-free loans to help the arm pay for properties bought from the listed company. (Mint)
Economic News
The steel industry agreed to cut prices by Rs4,000 a ton on flat products and Rs2,000 a ton on long products with immediate effect. (BS)
The Forward Markets Commission suspended futures trading in four commodities namely potato, soya oil, chana and rubber for four months. (BS)
TRAI to revive implementing of carrier access code (CAC) system, allowing subscriber to choose long distance operators of there choice. (FE)
Government may charge 12.5% tax on aviation turbine fuel drawn by airlines. (FE)
The net oil import bill in 2007-08 is likely to rise by around 41% over 2006-07 on account of the surging demand in India. (BS)
Centre ups e-sale quota of coal by 5 times. (BL)
625 companies have borrowed ~US$31bn through ECBs during 2007-08. (BL)
RBI prefers safety over returns from forex pulls out funds parked with many high-street banks. (ET)
India most attractive markets ..
India is one of the most attractive markets in the world now because of its high domestic demand and economic growth, Merrill Lynch Chairman and CEO John A Thain said on Thursday.
"If you consider opportunity vis-a-vis risk, India is one of the most attractive markets in the world," Thain said in Mumbai.
Because of its high demand, growth in economy, strength of corporates to go global and huge spending on infrastructure, India would be less affected to the US slowdown, he said.
Thain, however, said that a combination of falling home prices, rising food and energy prices and higher unemployment would result in a pull back of the US economy in the next six to 12 months.
Stating that Merrill Lynch believed that "genuine opportunity would come from outside the US," Thain said he was bullish about China, Russia and Brazil as well.
"China is also a very attractive market for us. But, China is more coupled with the US and that will have much more impact on the Chinese economy," he said.
"The degree of impact (of US slowdown) is different from different countries," Thain added. Merrill Lynch, which recorded about four times top-line growth in India in the last two years and doubles its headcount in half the time, would continue to increase the number of employees in the country, Thain said.
Thain believed India would offer huge opportunity in the coming days for the company as on the wealth management side, Merrill Lynch anticipated huge opportunity emanating from the huge amount of wealth being created and on the investment banking side, India Inc is becoming more global with the outbound M&A activity on the rise.
Merrill Lynch, he said, has global footprint to provide advisory services to the aspiring Indian companies going for outbound merger and acquisitions. But on the wealth management side, the company would continue to target High Net-worth Individuals and not the masses.
"We are focused on HNIs. Our business is selected and not for masses. HNI is a rapidly increasing market in India, Brazil, China and Russia," he said.
Thain said Merrill Lynch, which raised $2.5 billion realty private equity funds for the Asia-pacific region in a week back, would also launch a mutual fund targeting at the sector.
Today's Pick - LLyod Electric and Engineering
We recommend a buy in Lloyd Electric & Engineering from a short-term perspective. The charts of the stock show that it has been on a medium-term uptrend from its 52-week low of Rs 89.25 (touched in late March 2008). While trending up, the stock crossed the 21- and 50-day moving averages in succession and it has been forming higher peaks and higher troughs.
We notice that there is an increase in volumes traded over the past three trading sessions. In the recent times, the daily momentum indicator has also entered the bullish zone and it is currently featuring in this zone.
Moreover, the daily moving average convergence and divergence is featuring in the positive territory, indicating bullishness. Our short-term outlook for the stock is bullish. We expect the stock’s medium-term uptrend to continue until it hits our price target of Rs 142. Investor with short-term perspective can buy the stock while keeping the stop-loss at Rs 118 level.
Bullion metals turn dull
A strong dollar takes away some of the glitter from precious metals
Precious metals ended lower today, Wednesday, 07 May, 2008. The strong dollar was the main reason for this. Today’s fall for precious metals came after three straight days of rise. Prices fell even though crude touched a fresh new high at $123/barrel. Silver prices also fell 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 fell $6.5 (0.7%) to close at $871.2 ounce on the New York Mercantile Exchange. Last 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 4.3% for the till date against a 9% drop for the dollar against the euro. For April, prices closed lower by 6.3%. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.
Comex Silver futures for July delivery fell 16 cents (0.8%) to $16.7 an ounce. Silver has gained 12.2% 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, the dollar rose as downbeat U.S. home sales data failed to offset the effects of weak U.K. and euro-zone data earlier. The dollar index, which measures the greenback against a basket of six major currencies, was at 73.52 as against last day’s 73.015.
In the energy market today, crude-oil futures touched a fresh record above $123 Wednesday following a U.S. government report which showed that crude supplies climbed for a third week in a row, but that refinery capacity declined.
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 28 (0.24%) at Rs 11,628 per 10 grams. Prices rose to a high of Rs 11,660 per 10 grams and fell to a low of Rs 11,535 per 10 grams during the day’s trading.
At the MCX, silver prices for July delivery closed Rs 50 (0.22%) lower at Rs 22,542/Kg. Prices opened at Rs 22,656/kg and fell to a low of Rs 22,301/Kg during the day’s trading.
Crude rises for fourth straight day
Prices rise after crude inventories rise for third straight week
Crude-oil futures touched a fresh record above $123 today, 07 May, 2008, Wednesday following a U.S. government report which showed that crude supplies climbed for a third week in a row, but that refinery capacity declined. Price fell immediately after the data was released but soon it started spiraling up and closed $1.5/barrel higher for the day. Prices for crude oil have been hovering around $122 against a backdrop of disruptions to oil production in Nigeria.
Crude-oil futures for light sweet crude for June delivery closed at $123.53/barrel (higher by $1.69/barrel or 1.4%) on the New York Mercantile Exchange. Price dropped to $119 earlier during the day. In the past four sessions, crude prices have gone up by almost $11 (9.7%). For the year, crude is up by 26.7% till date.
EIA reported today that crude supplies rose 5.7 million barrels to 325.6 million for the week ended 2 May. Supplies of oil have now climbed a total of 11.9 million barrels over the past three weeks.
EIA also reported that motor gasoline supplies climbed 800,000 barrels to 211.9 million barrels last week and distillate stocks were down 100,000 barrels at 105.7 million barrels. The decline in distillate supplies last week came as refinery utilization fell to 85.0% of capacity from 85.4% a week earlier
On the currency markets today, the dollar rose as downbeat U.S. home sales data failed to offset the effects of weak U.K. and euro-zone data earlier. The dollar index, which measures the greenback against a basket of six major currencies, was at 73.52 as against last day’s 73.015.
June natural gas rose 18 cents to close at $11.33 per million British thermal units.
Against this backdrop, June reformulated gasoline closed at $3.12 a gallon, up 1 cent, and June heating oil gained 10 cents to end at $3.45 a gallon.
EIA reported yesterday 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 5,088/barrel, higher by Rs 111 (2.2%) against previous day’s close. Natural gas for July delivery closed at Rs 466.9/mmbtu, higher by Rs 6.3/mmbtu (1.4%)
Crude oil Crossing $120 hollow Asian market's advance
Taiwan, Tokyo advances while others traded lower
Asian stocks traded broadly lower, after crude oil prices hit a record in New York. In the energy markets, June crude-oil futures slipped as much as 11 cents to $121.73 a barrel in electronic trading at midday Tokyo hours. The energy contract climbed $1.87 to finish at a record high of $121.84 a barrel Tuesday in regular trading on the New York Mercantile Exchange, advancing for a third straight session.
The Japanese stocks climbed initially in their first day of trading after a four-day holiday, as banking shares helped to support the market.
The Nikkei 225 Average was up 0.4% at 14,102.48. Today’s session is the first since the benchmark advanced 2.1% Friday. The Topix index advanced 1.15% to 1,393.28.
Hong Kong's Hang Seng Index ended the day 2.5% lower at 25,610.21. The Hang Seng China Enterprises Index, Hong Kong's benchmark for mostly Chinese state-owned shares, fell 3.6% to 14,118.31.
The Shanghai's Composite Index plunged by 4.1% to 3,579.15. Elsewhere, Taiwan's Weighted Price Index added 0.8% to 8,926.34. Australia's S&P/ASX 200 index fell 0.6% to 5,668.40 while South Korea's Kospi fell 0.3% to 1,854.01. New Zealand's NZX 50 index declined 1.5% to 3,596.82.
In the afternoon trading India's Sensitive Index, or Sensex, dropped by 0.5% to 17,293.97 and the broader S&P/CNX Nifty rose 0.5% to 5,117.15. Singapore's Straits Times Index dropped 1.1% to 3,214.19.
In Asian currency trading, the U.S. dollar bought 105.28 yen, compared with 104.78 yen in New York late Wednesday.
Shares in Europe edge higher as investors eyed a slew of mostly well-received earnings from some of Europe's best-known companies including Lafarge and British American Tobacco.
In National indices, the U.K. FTSE 100 index rose 0.4% to 6,238.60, the German DAX 30 index climbed 0.5% to 7,052.31 and the French CAC-40 index advanced 0.1% to 5,045.33.
On the economic release side, UK’s manufacturing sector unexpectedly recorded a broad-based fall in output during March, the sharpest in six months.
The Office for National Statistics said manufacturing output fell by 0.5 % from February - the biggest fall since September 2007 and follows a 0.4 % rises in both January and February.
In another data release Euro-zone retail sales posted a record drop on the year in March, but the previous month's figures were revised significantly to show a rise rather than a fall.
The volume of retail sales fell 0.4% on the month and 1.6% on the year in March, marking the biggest fall on an annualized basis since the series began in January 2000.
The data showed sales of food, drinks and tobacco dropped 0.1% on the month after remaining flat in February, while sales of nonfood products dropped 0.6% in March after falling 0.3% in the previous month.
On the year, sales of food, drinks and tobacco slumped 2.7% after easing 0.4% in February, while sales of nonfood products dropped 0.9% in March after rising 1.8% in the previous month.
Aishwarya Telecom rings loud on debut
Settles at Rs 90.85 on BSE, a sharp premium of 159.57% over its issue price of Rs 35
The counter saw high volumes of 8.27 crore shares on BSE
Aishwarya Telecom settled at Rs 90.85 on BSE, a sharp premium of 159.57% over its issue price of Rs 35 on its debut today.
Earlier today, the Aishwarya Telecom stock debuted at Rs 50.10 on BSE, a premium of 43.14% over its issue price of Rs 35. The stock hit a high of Rs 93 and a low of Rs 50.10 so far during the day.
Aishwarya Telecom had fixed the issue price at Rs 35 per equity share for its with initial public offering of 40 lakh shares. The initial public offer of Aishwarya Telecom was subscribed around 20 times. The company will use the proceeds of the issue to increase its manufacturing capabilities and infrastructure, fund research projects and for general corporate purposes.
Aishwarya Telecom mainly supplies its products to major telecom operators. The company also manufactures products for telephone service providers, defence sector, railways, telecom equipment companies and cable TV operators. It also exports cable fault locators to France, Taiwan, Czech Republic and Dubai.
The company had reported 28.90% rise in net profit to Rs 3.03 crore on 32.10% increase in net sales to Rs 22 crore in the year ended March 2007 over the year ended March 2006.
US Markets end in big losses
Wall Street stocks finished markedly lower on Wednesday as oil prices soared to fresh record peaks above 123 dollars a barrel, renewing fears about inflationary pressures.
The Dow Jones Industrial Average of blue chips ended down 207.05 points (1.59 percent) at 12,813.78.
The technology-laden Nasdaq composite finished down 44.82 points (1.80 percent) at 2,438.49 while the broad-market Standard & Poor's 500 index dropped 25.69 points (1.81 percent) to a preliminary close of 1,392.57.
The Nasdaq had traded higher in morning deals, but all three indexes endured losses in subsequent trading as oil prices pushed higher.
On the corporate front, telecoms giant Sprint Nextel and Clearwire said they would combine their networks in a new company focusing on emerging WiMax wireless Internet technology with investment backing from Internet search giant Google, Intel and others.
The firms have agreed to collectively invest 3.2 billion dollars in the new company
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