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Friday, May 09, 2008
BSE Bulk Deals to Watch - May 9 2008
Scrip Name Client Name Deal Type * Quantity Price **
ADVANI HOT R DELTA HOSPITALITY PVT LTD OLD NAME FASTTRACK IMPEX PVT LTD B 3144127 101.00
AISHWARYA TE YES INVESTMENTS B 150000 92.12
AISHWARYA TE HARISH KUMAR SROTRIYA B 88795 92.87
AISHWARYA TE GOPAL TRADERS B 502759 90.21
AISHWARYA TE ANIL.SHRIMAL B 801270 92.24
AISHWARYA TE KASHISH FINSTOCK B 65000 96.24
AISHWARYA TE SHRINATHJI SHARES TRAD. PVT LTD B 80007 87.00
AISHWARYA TE RAJEEV SHARMA B 129078 94.74
AISHWARYA TE BIMAL KUMAR BHAKAT B 75000 94.06
AISHWARYA TE DIPALI RAJESH SHAH B 91625 95.85
AISHWARYA TE S.M.NISSAR B 543822 90.44
AISHWARYA TE PATEL INVESTMENTS B 111832 91.93
AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. B 716312 94.57
AISHWARYA TE N D NISSAR B 1383737 92.63
AISHWARYA TE N C JAIN B 68701 94.46
AISHWARYA TE LATIN MANHARLAL SEC PVT LTD B 305361 92.95
AISHWARYA TE JITEN G PATEL HUF B 156790 92.74
AISHWARYA TE MIHIR AGENCIES PVT LTD B 172000 90.15
AISHWARYA TE ARCHITA JIGNESH SHAH B 59718 93.26
AISHWARYA TE SANJAY POPATLAL JAIN HUF B 370430 94.81
AISHWARYA TE NAVEEN TAPARIA B 102244 90.45
AISHWARYA TE ASTUTE COMMODITIES AND DERIVATIVES PVT LTD B 78461 91.70
AISHWARYA TE AMU SHARES AND SEC LTD B 68482 94.22
AISHWARYA TE YATIN SATRA B 61982 94.22
AISHWARYA TE MUKESH SHAH B 422932 92.13
AISHWARYA TE SREI VENTURE CAPITAL LTD S 240309 89.97
AISHWARYA TE YES INVESTMENTS S 150000 95.46
AISHWARYA TE HARISH KUMAR SROTRIYA S 88795 92.44
AISHWARYA TE GOPAL TRADERS S 563893 94.58
AISHWARYA TE ANIL.SHRIMAL S 835830 96.95
AISHWARYA TE VINOD SHOKEEN S 84698 93.55
AISHWARYA TE KASHISH FINSTOCK S 105000 96.82
AISHWARYA TE SHRINATHJI SHARES TRAD. PVT LTD S 80007 88.34
AISHWARYA TE RAJEEV SHARMA S 129078 94.81
AISHWARYA TE BIMAL KUMAR BHAKAT S 75000 93.43
AISHWARYA TE DIPALI RAJESH SHAH S 91625 95.70
AISHWARYA TE S.M.NISSAR S 543822 90.54
AISHWARYA TE SANDEEP S SABOO S 100000 92.30
AISHWARYA TE PATEL INVESTMENTS S 121832 92.33
AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. S 716310 94.66
AISHWARYA TE N D NISSAR S 1383737 92.69
AISHWARYA TE N C JAIN S 68700 94.98
AISHWARYA TE LATIN MANHARLAL SEC PVT LTD S 323361 93.13
AISHWARYA TE MANOJ NANDKISHORE TEKRIWAL S 200000 97.59
AISHWARYA TE SHAH SAMIR D S 100000 98.02
AISHWARYA TE JITEN G PATEL HUF S 156790 91.56
AISHWARYA TE MIHIR AGENCIES PVT LTD S 172000 91.41
AISHWARYA TE ARCHITA JIGNESH SHAH S 59718 96.92
AISHWARYA TE SANJAY POPATLAL JAIN HUF S 370430 94.81
AISHWARYA TE NAVEEN TAPARIA S 102244 94.00
AISHWARYA TE ASTUTE COMMODITIES AND DERIVATIVES PVT LTD S 83972 91.96
AISHWARYA TE VIRENDRA KUMAR AGRAWAL S 100000 92.02
AISHWARYA TE AMU SHARES AND SEC LTD S 68482 94.27
AISHWARYA TE YATIN SATRA S 61982 94.27
AISHWARYA TE MUKESH SHAH S 422932 92.34
AZTECSOFT L MINDTREE CONSULTING LIMITED B 840000 79.48
AZTECSOFT L V R GOVINDARAJAN S 400000 80.00
BANNARI AMMA CHANAKYA INTERNATIONAL PVT LTD B 104250 104.95
BANNARI AMMA LOGUS REALTY PVT LTD S 100000 105.00
BIHAR TUBES SPJ STOCK B 166226 162.86
BIHAR TUBES SPJ STOCK S 166226 163.65
BOMBAY PAINT RAJIV ARORA B 19721 79.37
BOMBAY PAINT RAJIV ARORA S 11091 80.17
CHOKSH INFO DEWANG HIMATLAL JOSHI B 18749 19.22
CYBERMAT INF EDELWEISS ESTATES PRIVATE LIMITED S 336214 6.13
DMC INTER VEENA GUPTA B 19800 14.30
DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 28500 14.35
DMC INTER HITECH COMPUTECH PRIVATE LTD S 25000 14.34
DMC INTER KRISHNA INFOMEDIA LTD S 18000 14.22
GREYCELLS EN HARSHAD N SHAH S 25500 320.07
GSS AMERICA OPG SECURITIES PVT LTD B 261096 406.52
GSS AMERICA MANSUKH STOCK BROKERS LTD B 69916 399.61
GSS AMERICA OPG SECURITIES PVT LTD S 261096 406.92
GSS AMERICA MANSUKH STOCK BROKERS LTD S 69916 400.99
IFL PRMOTER J A FINANCIAL AND MAMAGEMENT CONSULTANTS PVT LTD B 20000 29.50
JUMBO BAG LT PARAS VALCHAND MEHTA HUF S 37910 41.21
KARUTURI GLO WEXFORD CAPITAL LLC B 3000000 28.25
KASHYAP TEC OM EDUCATION IT PVT LTD B 2748148 2.00
KASHYAP TEC OM EDUCATION IT PVT LTD S 2266836 2.01
KUSHAGRA SO ROMY REALTY PVT LTD B 101600 8.30
KUSHAGRA SO YASHODHA BAI MANIYAR S 100000 8.30
NEOCORP INTE KRIPA NIWAS SHARMA B 45000 65.63
NEOCORP INTE VINAY KUMAR HUF S 50000 64.00
PASARI SPIN SPJ STOCK B 67704 12.33
PASARI SPIN SPJ STOCK S 64404 12.36
PAT INT LOG PATEL HOLDINGS LIMITED B 208979 61.88
PAT INT LOG NATASHA CONSTRUCTIONS PVT LTD S 201500 61.94
POONAM PHARM SWARN GANGA TRADING PVT. LTD. B 100000 3.73
RADHE DEVELO SHYAM RAMBHAI PATEL B 65000 145.74
SHYAMLAL HOL EMPEROR CONSULTANCY SER PVT LTD B 3000 5.40
SITA SHREE SOPHIA GROWTH A CLASS OF SOMERSET INDIA FUND S 500000 45.00
STELCO STRIP SPJ STOCK B 46822 38.88
STELCO STRIP SPJ STOCK S 46822 38.64
WEBEL SL ENE BLACKSTONE ASIA ADVISORS LL. B 70040 349.94
WEBEL SL ENE MORGAN STANLEY MAURITIUS CO LTD S 50000 350.00
WELL PACK PA KEYURKUMAR JAYANTIBHAI PATEL B 30000 50.00
NSE Bulk Deal Watch - May 9 2008
Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
AZTECSOFT,Aztecsoft Limited,MINDTREE CONSULTING LIMITED,BUY,440000,78.88,-
GSSAMERICA,GSS America Infotech Limi,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,158635,401.23,-
GSSAMERICA,GSS America Infotech Limi,MANISH VRAJLAL SARVAIYA,BUY,81419,408.41,-
GTL,GTL Limited,GLOBAL ASSET HLDG CORIN P.LTD,BUY,642151,259.37,-
GWALCHEM,Gwalior Chemical Industri,MBL & COMPANY LTD.,BUY,175710,86.27,-
KEYCORPSER,Keynote Corp Serv Ltd,CHAINANI MALKA SANJIV,BUY,61071,134.95,-
RENUKA,Shree Renuka Sugars Limit,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,BUY,1494000,131.43,-
SITASHREE,Sita Shree Food Products,ADROIT FINANCIAL SERVICES PVT LTD,BUY,144766,45.95,-
WEBELSOLAR,Webel-SL Energy Systems L,BLACKSTONE ASIA ADVISORS L L C A/C THE INDIA FUND INC,BUY,57941,349.92,-
GSSAMERICA,GSS America Infotech Limi,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,158635,401.76,-
GSSAMERICA,GSS America Infotech Limi,MANISH VRAJLAL SARVAIYA,SELL,81419,410.14,-
GWALCHEM,Gwalior Chemical Industri,MBL & COMPANY LTD.,SELL,175710,86.30,-
IBSEC,Indiabulls Securities Lim,CLSA (MAURITIUS) LIMITED,SELL,3600000,115.62,-
KEYCORPSER,Keynote Corp Serv Ltd,GULU KHUBA WATAMULL,SELL,36071,134.95,-
SITASHREE,Sita Shree Food Products,ADROIT FINANCIAL SERVICES PVT LTD,SELL,144766,45.89,-
SITASHREE,Sita Shree Food Products,SOPHIA GRWOTH - A SHARE CLASS OF SOMERSET INDIA FUND,SELL,500000,45.00,-
WEBELSOLAR,Webel-SL Energy Systems L,MORGAN STANLEY DEAN WITTER MAURITIUS CO. LTD,SELL,50000,350.02,-
Post Session Commentary - May 9 2008
Indian market closed with heavy losses backed by unfavoring cues like the growth in domestic inflation figures that rose at the fastest pace in three and half years to 7.61% in the week ended 26th April. Also the surge in global crude oil prices to $125 led to the negative sentiments in the market. The domestic market opened on the weak note spurred by the negative cues from the Asian market. Soon after the mid session the market did not showed any sign of recovery and kept on drifting down further as the selling pressures prevailed across the sectoral indices. From the sectoral front, the oil and gas stocks faced the heavy selling across the counters. The market breadth was negative as 2019 stocks closed in red while 704 stocks closed in green.
The BSE Sensex closed lower by 343.58 points at 16737.07 and NSE Nifty fell by 99.10 points to close at 4,982.60. The BSE Mid Caps and Small Cap closed lower by 160.77 points and 183.40 points at 6,992.66 and 8,505.64 respectively.
Losers from the BSE are Jaiprakash Associates (6.60%), Reliance (5.19%), Reliance Energy (4.45%), ACC Ltd (4.20%), HDFC Bank (3.74%), Hindalco (3.61%), Cipla Ltd (2.81%) and Housing Development Finance Co (2.79%).
The Oil & Gas index closed lower by 547.57 points at 11,6080.88. Lossers are Essar Oil Ltd (9.45%), Reliance Petrolium (8.03%), RIL Natural Resources (5.86%), Reliance (5.19%) and Aban Offshore (4.18%).
The Capital Goods index declined by 265.83 points to close at 13,109.36. Major losers are Kirlosker Br (5.86%), AREVA (4.96%), Kalpat Paw T (4.00%), Havells India (3.71%), Punj Lloyd (3.68%) and Praj Industries Ltd (3.28%).
The Realty index closed lower by 239.60 points at 7,891.10 Losers are Housing Development (7.63%), Penland Ltd (5.08%), Omaxe Ltd (5.04%), Unitech Lyt (4.59%), Ansal Infra (3.15%), and DLF Ltd (2.08%).
The Bankex index fell by 243.83 points to close at 8511.65 as Kotak Bank (5.78%), Punjab National Bank (4.92%), Canara bank (4.52%), Yes bank (3.97%), HDFC Bank (3.74%), and Axis bank (3.13%) closed in negative territory.
Metal index closed lower by 232.58 points at 15,610.69. Losers are Welsp Gujarat (5.22%), Jindal Steel (4.71%), Ispat Industries (4.20%), SH.Precoated (3.77%), Jindal Stain (3.57%), and Hindalco (3.61%).
Sensex ends below 17K
The markets declined for the fifth straight session on Friday with the benchmark Sensex dropping over 340 points to close below 17k level as a further rise in inflation dampened the trading sentiments.
The 30-share Sensex on the Bombay Stock Exchange ended the day at 16,737.07, a loss of 343.58 points, or 2.01 per cent, from its previous close.
The BSE barometer has shed 863 points, or 5.0 per cent, during the week.
The broader 50-share S&P CNX Nifty of the National Stock Exchange also fell further by 99.10 points or 1.95 per cent to close at 4,982.60.
Marketmen said inflation, which rose to 42-week high of 7.61 per cent for the week ended April 26, and rising crude oil prices were the key factors behind today`s sharp slide.
Global oil prices hit yet another fresh record high at 124.73 dollars a barrel in European trade this afternoon.
Certain other factors such as weak global cues, worries about widening trade deficit, which might lead to slowdown in capital inflows, impacted the market sentiments, they added.
With selling pressure spilling over a wide front, all sectoral indices, barring FMCG index, closed lower. FMCG sector index was marginally better.
India`s largest private sector company Reliance Industries took a hit of 5.19 per cent on concerns over high oil global prices.
Bank shares were also came under heavy selling pressure even as bankers discounted fears of any increase in interest rates. SBI was down by 3.13 per cent, while HDFC Bank closed lower by 3.74 per cent. ICICI Bank also lost 1.94 per cent.
Weekly Newsletter - May 9 2008
The bulls may end up banging their heads against the Wall of Worry which seemed to have been ignored in recent weeks. The markets may more or less continue from where they left on Friday. A cause of concern would be the IIP numbers which will be announced on Monday. Expectations are it could be disappointing yet again and this could provide fuel to the bears. Inflation remains at higher levels and crude prices continue to cause worries globally. Not many significant results are in store. Only strong global cues can prevent a likely meltdown in the coming weeks.
Deutsche Telecom mulling bid for Sprint Nextel: reports
Shares of fell in Frankfurt after international newspapers, including the Wall Street Journal (WSJ) reported that it was considering a bid to acquire US-based Sprint Nextel. WSJ said deliberations are at a preliminary stage and management may very well turn away. Any bid could still be weeks, or even months away, WSJ quoted people close to the development as saying. "The Sprint project is top priority," Germany's Der Spiegel said. The weekly news magazine also said that there is for the moment no formal offer for shares or a takeover attempt and no active negotiations. A combination with Sprint could make the German company's T-Mobile unit the biggest wireless company in the US. Sprint Nextel is the third-biggest provider of cell phone services in the US and has a market capitalisation of about US$22bn (€14.2bn). AT&T Wireless and Verizon Wireless are the top two providers there. T-Mobile is No. 4 in the US market. Separately, Sprint Nextel unveiled an alliance with Clearwire, an internet-service provider, to create a network based on WiMax. Other companies, including Google, Intel and Time Warner, are investing in the venture. The deal may allow Sprint Nextel to steal a march on AT&T and Verizon, as they are backing a different wireless technology that will not be ready for two years.
Reliance Industries, Toshiba - JSW Deals
RIL still can't sign third-party gas deals
Reliance Industries Ltd. (RIL), which is all set to start gas production from the Krishna Godavari basin, will have to wait till July-end for signing sale agreements with potential customers. This is because the Bombay High Court deferred hearing in the long-standing legal dispute between RIL and RNRL till July 22. At yesterday's hearing, RIL counsel Harish Salve argued that the earlier interim order, restraining RIL from selling gas to third party, had lapsed. He said that RIL would start gas production from KG-D6 by the end of July and requested that it be allowed to enter into supply contracts with third parties. RNRL lawyer Ram Jethmalani said there was a strong possibility of appeals never getting disposed of if RIL was permitted to sign contracts. He also argued that if RIL is allowed to get into third-party agreements and the final verdict is in RNRL's favour, then the third parties will again move the court. Meanwhile, the court will soon take a call on the Government's application to become a party to the proceedings. RNRL has opposed the Government's plea to vacate the stay on RIL for creating third-party rights for the KG basin gas. It has alleged that the Centre's move is highly motivated and has been filed only with the intention of helping one party.
Toshiba & JSW to make turbines, generators
Toshiba Corp. and JSW Group agreed to establish a joint venture to manufacture and market super-critical steam turbines and generators for thermal power plants in India. Under the terms of an agreement between the companies, Toshiba and JSW will establish a joint venture in June. The new company will have an initial capitalization of US$50mn, 75% held by Toshiba and 25% by JSW Group, to be held by two group companies, JSW Steel (5%) and JSW Energy (20%). The companies are now deciding the location of the headquarters and manufacturing facilities, and will announce the details in due course. The manufacturing operations are expected to start in September 2009. The scope of the JV includes design, manufacture, marketing and maintenance services of mid- to large-sized steam turbines and generators, ranging in size from 500-megawatts (MW) to 1,000MW that will be deployed in highly efficient super-critical thermal power plants.
FMC suspends futures trade in 4 commodities
The Forward Market Commission (FMC), which is the regulator for commodity exchanges in India, decided to suspend futures trading in chana (gram), refined soyoil, potato and rubber for the next four months. "The decision has been taken as a measure of abundant caution considering the concerns of the Government about the inflationary expectations," FMC member Rajeev Agarwal was quoted as saying. All outstanding trades would be settled at Wednesday's closing price. The order may be revoked after September 6 unless the Government thinks otherwise, a financial newspaper reported. India's inflation, based on the wholesale price index (WPI) touched a 42-month peak of 7.61% for the week ended April 26 due to the relentless rise in global commodity prices. The suspension of futures trading in four commodities is the latest in the series of measures taken by the Government to reign in inflation. Last year, the Government had banned futures trading in wheat, rice, urad and tur after allegations that widespread speculation in commodity futures markets was partially responsible for soaring prices of essential food commodities.
Steel companies to cut prices again
Desperate situations call for desperate measures. Looks like that is what the Government also seems to be thinking, as it grapples with a spiraling inflation, which is running at a 42-month high. In a latest move to quell inflation, the Government asked steelmakers to reduce prices for a second time in as many months. Prime Minister Dr. Manmohan Singh persuaded steelmakers last month to freeze prices to help combat inflation. Steel companies agreed to cut prices of flat products by Rs4,000 per ton and that of long products by Rs2,000 a ton. These reductions will be applicable for all steel that gets consumed in India either directly or after further processing. Further, the steel producers will hold these prices for the next three months. The steelmakers told the Government that there should be no duty on export of steel products. They also demanded allocation and renewal of iron ore and coal mines on a priority basis and sought an ad valorem duty of 15-25% FOB on export of iron ore. Steel companies also said that railway freight on steel making raw materials and on steel products be maintained at current levels/classification. The Prime Minister appreciated the gesture of the steel industry and assured them of expeditious examination of their proposals.
Worst weekly fall for rupee in 10 yrs
The Indian rupee had its biggest weekly loss in a decade as crude oil touched a near all-time high of US$125.98 per barrel, boosting demand for dollars from oil refiners. However, the local currency bounced back on the last trading day of the week, spurred by suspected dollar sales by exporters. The rupee's 1% rally on Friday helped it pare this week's decline to 2.3%. It ended the week at 41.5950 as against last Friday's close of 40.6750, the biggest weekly decline since May 1998. During the week, the local currency touched a low of 41.8950 and a high of 40.53. The rupee is the second-worst performer this year among Asia's 11 most-traded currencies. A weak stock market also had an adverse impact on the local currency. The benchmark BSE Sensex fell 4.9% this week, ending a four-week advance. A rebound in the US dollar from a record low against the euro and signs the Federal Reserve may be finished with cutting rates prompted some investors to shun emerging-market assets.
Weekly Stock Picks - May 9 2008
Buy Arvind Mills
Buy IDBI
Buy Areva T&D
Buy Tata Steel
Buy Aban Offshore
Oil hits new record during the week
Oil prices touched a near record high above US$125 per barrel and was set for the biggest weekly gain in more than a year amid mounting concerns over supply disruptions ahead of the summer driving season in the US. Crude oil for June delivery climbed as high as US$125.98 a barrel in electronic trading on the New York Mercantile Exchange on Friday. The contract was last quoted at US$125.17 at 1:32 p.m. London time. Oil is up 7.6% this week, the biggest weekly gain since March 23, 2007. Oil prices have doubled from the same period a year ago.
A surge in heating oil futures following sharp declines in distillate inventories triggered heavy buying by investment funds. Also, refinery maintenance and production cutbacks have curbed diesel supplies of late. Militant strikes on Shell's Nigerian operations disrupted output from Africa's biggest oil producer. Still, OPEC said it doesn't need to increase supplies, even as its president warned prices may reach US$200 a barrel. The oil cartel said that there was no need to raise output as the considerable depreciation in the US dollar rather than limited supply is behind record prices.
The US government reported on May 7 that distillate fuel inventories and refinery operations fell last week. US distillate stockpiles, which include heating oil and diesel, declined 107,000 barrels to 105.7mn against forecasts for an 800,000-barrel rise, the Energy Department reported. Refineries in the US operated at 85% last week, down from 89% the year before, the data showed. Meanwhile, Goldman Sachs forecast that prices could hit US$200 a barrel in the next two years. The Wall Street major had famously and correctly predicted three years ago that oil would break through US$100.
Bharti Airtel goes shopping in Africa
In what could be India's biggest acquisition, Bharti Airtel said it is in "exploratory" talks to acquire South Africa-based MTN. Media reports said Bharti Airtel had bid for a 51% stake in Africa's biggest telecom firm, valuing it at US$38bn. But, Bharti Airtel denied that it had made any offer for acquiring a majority stake in MTN. FT quoted unidentified sources as saying that Bharti Airtel had bid 165 rand per share and had secured US$12bn from Goldman Sachs and Standard Chartered Bank to finance the deal. It added that MTN was hoping for a higher bid of near 180 rand. Separately, Dow Jones Newswires reported that Bharti Airtel is considering a bid of 175 rand a share. Shares of MTN surged to a new record, while that of Bharti Airtel slumped amid concerns that the mega deal could strain the company's finances.
There was talk that other suitors could emerge for MTN, but China Telecom and Orascom said they were not in the race for acquiring MTN. Bharti Airtel's local rivals Vodafone and Reliance Communications too denied interest in the South African company. Reports also suggested that Singapore Telecommunications, which has a substantial stake in Bharti Airtel, could help it fund the MTN acquisition. However, there was no confirmation of this from SingTel. The Mumbai analyst community had mixed view of Sunil Mittal's proposed big bang acquisition. But, credit ratings agency Fitch said that Bharti Airtel's ratings could be under pressure if it ends up successfully acquiring a major stake in MTN, goes for debt financing. Bharti Airtel may have its debt rating reviewed for a possible cut if it nears a bid for the company, Standard & Poor's said.
Free fall continues
Nervousness gripped the market for the fifth consecutive session, as selling pressure since early trades saw the index remain weak throughout the trading session. Though the Sensex resumed at 17,021, 60 points below its previous close and moved up to touch an early high of 17,126 on selective buying, the market soon snapped gains due to selling pressure. As correction continued unabated, the index tumbled below the 16,700 mark to touch an intra-day low of 16,679 by end of day. While the market languished in negative territory all through the noon trades, the Sensex signed off the session with losses of 344 points at 16,737. The Nifty also ended in red at 4,983, down 99 points.
The market breadth was weak. Of the 2,784 stocks traded on the BSE, 2,020 stocks declined, 703 stocks advanced and 61 stocks ended unchanged. Barring the BSE FMCG index, all the sectoral indices ended lower. The BSE Oil & Gas index fell 4.71%, the BSE Realty index dipped 2.95%, the BSE Bankex index shed 2.78% and the BSE PSU index was down 2.03%.
Among the draggers, Jaiprakash Associates dropped 6.60% at Rs251.30, Reliance Industries Ltd (RIL) shed 5.19% at Rs2,527.65, Reliance Energy tumbled 4.45% at Rs1,332.05, ACC declined 4.20% at Rs712 and HDFC Bank was down 3.74% at Rs1,451.95. State Bank of India at Rs1,675.70, Cipla at Rs205.60, HDFC at Rs2,644.70, Tata Consultancy Services at Rs917.45 were down around 2.79% each.
Select index heavyweights managed to register decent gains. Bharti Airtel rose 1.76% at Rs842.20, ITC gained 1.51% at Rs218.30, Wipro scaled up 0.81% at Rs501.20, Satyam Computer Services added 0.49% at Rs473.40, Grasim Industries jumped by 0.35% at Rs2,340 and ONGC advanced 0.04% at Rs1,028.80.
Oil & Gas stocks came under sharp hammering. Essar Oil slumped 9.45% at Rs251.15, Reliance Petroleum Ltd (RPL) lost 8.03% at Rs181.05, Reliance Natural Resources Ltd (RNRL) declined 5.86% at Rs106.80 and RIL was down 5.19% at Rs2,527.65. Aban Offshore, Gail India, BPCL, Cairn India, Indiana Oil Corporation (IOC) and Hindustan Petrochemical Ltd (HPCL) dipped 1.50-4% each.
Select fast moving consumer goods (FMCG) stocks attracted buying support. Nestle rose 3.32% at Rs1,812.30, ITC moved up 1.51% at Rs218.30, Marico flared up 0.84% at Rs66.10 and Godrej gained 0.81% at Rs137.20. While REI Agro added 0.58% at Rs1,600, Britania was up 0.37% at Rs1,370.
Over 5.37 crore Aishwarya shares changed hands on the BSE followed by IFCI (2.81 crore shares), Ispat Industries (1.56 crore shares), RPL (1.55 crore shares) and RNRL (1.21 crore shares).
Aiswarya clocked huge turnover of over 502 crore followed by RPL (Rs291 crore), Reliance Capital (Rs283 crore), RIL (Rs268 crore) and IFCI (Rs173 crore).
Industrial production data may provide direction
The key data which the market will be eyeing at the start of the week is industrial production data for March 2008 due on Monday 12 May 2008. The market will also track global equities in the absence of major domestic trigger. The corporate results announced so far have been more or less in line with market expectations. Inflation data will also be eyed as it remains as a major worry and hindrance for the domestic growth. High inflation may compel the government to take more fiscal measures to rein in prices in addition to slew of majors taken recently.
Industrial production had risen 8.6% in February 2008, bouncing from January 2008's upwardly revised figure of 5.8%.
The spiraling inflation has been a major cause of concern for Indian equities market. The wholesale price index rose 7.61% in the 12 months to 26 April 2008, marginally higher than previous week's annual rise of 7.57%, government data showed on Friday, 9 May 2008. The rate was the highest since an annual reading of 7.68% on 13 November 2004. The WPI remained above the 7%-mark (significantly above RBI's revised target of 5.5% for the year) for the past four weeks.
India, which will hold parliamentary elections next year, has taken a number of measures in response to soaring food prices recently. The government has eliminated import tariffs on several commodities, including wheat, wheat flour and palm oil. It has also tried to crack down on hoarding food.
The Union government suspended futures trading in soybean oil, potatoes, rubber and chickpeas for four months from 8 May 2008. These four commodities account for a trading volume valued at nearly Rs 15,000 crore every month (Rs 600 crore daily) out of the total volume estimated at Rs 1,64,080 crore (about Rs 6,500 crore daily). Last year, the government banned trading in rice and wheat futures.
The recent rally in crude oil may also continue to weigh on investor sentiment. Oil rallied to strike a fresh record to an all-peak of $124.61 a barrel on Friday, 9 May 2008 as strong diesel demand outweighed signs of rising OPEC supplies.
Meanwhile in a meeting held on 8 May 2008, the Bank of England and the European Central Bank both kept interest rates unchanged at 5% and 4% respectively, as expected. Most experts now predict that both central banks are likely to cut rates by the end of the year to shore up stumbling economies.
Back home, the market succumbed to selling pressure last week as weak global equities and soaring crude oil prices worried investors.
Foreign institutional investors (FII) sold shares worth Rs 75.10 crore in first few days in the month of May 2008. They sold shares worth Rs 10433.20 in calendar year 2008 till 7 May 2008. Domestic funds bought shares worth Rs 15.90 crore in first few days in the month of May 2008.
Unichem Laboratories, Indiabulls Real Estate, Blue Star, Gail (India), Mercator Lines, Lupin, Punjab National Bank, Voltas, Steel Authority of India, Bank of India, Indian Bank among others will announce their quarterly results next week.
Sensex plunges 863 points
The market reversed the course devoid of any major local or global trigger to guide the investors. It declined in all the five trading sessions in the week as rising crude prices and inflation marred the sentiment. The market also more or less tracked the global markets. The corporate results announced so far have been more or less in line with market expectations.
The BSE Sensex plunged 863.05 points or 4.9% to 16,737.07 in the week ended 9 May 2008. S&P CNX Nifty fell 245.6 points or 4.69% to 4,982.60 in the week.
The BSE Mid-Cap index declined 244.81 points or 3.38% to 6,992.66 in the week. The BSE Small-Cap index slumped 316.07 points or 3.58% to 8,472.67.
Foreign institutional investors (FII)’s sold shares worth Rs 75.10 crore in first few days in the month of May 2008. They sold shares worth Rs 10433.20 in calendar year 2008 till 7 May 2008. Domestic funds bought shares worth Rs 15.90 crore in first few days in the month of May 2008.
The 30-share BSE Sensex fell 109.22 points or 0.62% at 17,490.90 on Monday 5 May 2008. After trading within a narrow range earlier in the day, the market declined in late trading as US stock futures indicated lower opening on the Wall Street. Realty and healthcare stocks outperformed the market. Consumer durables and IT stocks dropped. Small-cap and mid-cap counters were active throughout the session with their barometer indices outperforming the Sensex.
The 30-share BSE Sensex fell 117.89 points or 0.67% at 17,373.01 on Tuesday, 6 May 2008. The key benchmark indices ended lower as investors resorted to profit booking due to lack of positive triggers in the market. Selling pressure was seen in mid-cap and small-cap counters with their barometers underperforming the Sensex. Realty and power stocks rose whereas FMCG and metal stocks gained. IT pivotals recovered at the fag end of the session after rupee slipped to eight-month low against the dollar.
The 30-share BSE Sensex fell 33.70 points or 0.19% at 17,339.31 on Wednesday, 7 May 2008. Weakness in Asian markets and a surge in crude oil prices spoiled the sentiments. IT and oil & gas stocks rose whereas capital goods stocks and the shares of PSU firms suffered the most.
The 30-share BSE Sensex fell 258.66 points or 1.49% at 17,080.65 on Thursday, 8 May 2008. The market succumbed to selling pressure 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.
The 30-share BSE Sensex lost 343.58 points or 2.01% at 16,737.07 on Friday, 9 May 2008. The market tumbled hit by a series of bad news on the domestic and global front. India's inflation surged to more than 3-year high, global markets declined and crude oil hit yet another record high near $125 a barrel. All the sectoral indices on BSE, barring FMCG index, were in red. Oil & gas, realty and banking stocks declined sharply.
India’s largest cigarrette maker by sales ITC declined 1.11% to Rs 218.30, and Axis Bank shed 10.38% to Rs 836.30 in the week. As per recent reports,, the Union government has given in-principle approval for SUUTI’s stake sale in these three companies. Specified Undertaking of Unit Trust of India (SUUTI) was created as a successor to UTI with the assets and liabilities of US 64 and its assured-return schemes, and it reportedly owns 9.04% in Larsen & Toubro (L&T), 11.90% in ITC and 27.18% in Axis Bank (as at end March 2008). The stake sale process is likely to be completed by the end of this financial year.
India’s largest telecom services provider by sales Bharti Airtel fell declined 6.28% to Rs 842.20 in the week. Bharti said it is in exploratory talks for a stake in South African telecom operator MTN Group. Bharti Airtel said the current discussions with the MTN Group are still at an early stage and they may or may not lead to any transaction. As per media reports, Bharti Airtel has arranged $12 billion of financing and may seek to buy 51% of MTN, valuing the company at about $39 billion. The acquisition would be the biggest by an Indian company, eclipsing Tata Steel’s $13 billion takeover of Corus Group Plc in 2007.
India’s largest truck maker by sales Tata Motors declined 3.14% to Rs 668.80. The company reported 5.8% fall in total automobile sales to 38,149 units in April 2008 over April 2007 largely on account of dip in passenger car segment and exports.
India's largest engineering and construction company in terms of revenue Larsen & Toubro fell 9.73% to Rs 2835.55. The company is about to undergo a massive restructuring that will result in the creation of a dozen operating companies under the guidance of separate board of directors. As per reports, the restructuring will lead to Larsen & Toubro (L&T) becoming the umbrella organisation with a board to administer the performance of all businesses and ownership of the brand, pegged at around $2 billion, effective from 1 July 2008.
Shares of India's largest cement manufacturer in terms of annual production capacity ACC fell 5.54% to Rs 712 in the week. ACC had said on Thursday, 8 May 2008, its margins will be hurt by a decision to hold its prices for 2 to 3 months that was taken after the government asked cement firms to help contain price pressures. pressures.
Wipro (down 0.2% to Rs 501.20), Infosys (down 2.18% to Rs 1,750.50), Tata Consultancy Services (down 2.48% to Rs 917.45), Satyam Computer Services (down 4.19% to Rs 473.40), ICICI Bank (down 6.57% to Rs 874.05), HDFC Bank (down 5.65% to Rs 1451.95), Reliance Industries (down 5.5% to Rs 1,527.65) edged lower in the week.
Aishwarya Telecom debuted at Rs 50.10, a premium of 43.14% and settled at Rs 90.85 a sharp premium of 159.57% over its issue price of Rs 35 (the top end of Rs 32- Rs 35 IPO price band) on 7 May 2008.
The market regulator Securities & Exchange Board of India (Sebi) on 5 May 2008 relaxed margining in the cash market segment which it called as an initial step towards cross margining in the cash market and futures segment. Cross margin facility will be available in case where a market participant has a position in the cash market with an off-setting stock futures position in the derivatives segment. Cross margining benefit will be initially available for only institutional investors.
Passenger car sales in rose 17.2% to 98,740 units in April 2008 over April 2007. Analysts attribute the growth to low base effect as sales were poor in April 2007. Sales of commercial vehicles -- trucks and buses, rose 7.6% to 33,271 units in April 2008 over April 2007.
Indian steel makers on Wednesday, 7 May 2008, agreed to cut prices in government’s efforts to rein in inflation. The public and private steel makers said they would cut the price of long products used in construction by Rs 2,000 a tonne, or 5.5%, and that of flat products by Rs 4,000 a tonne, or about 10%. Steel makers have also decided to hold the price line for the next three months. Steel makers, however, urged the government to discourage iron ore exports and withdraw the tax on steel exports.
The Reserve Bank of India (RBI) on Thursday, 8 May 2008, eased lending norms for infrastructure projects. In a notification RBI said bank loans to infrastructure projects would be treated as sub-standard only if commercial production is delayed by more than two years over the date originally envisaged, instead of the present norm of one year.
The wholesale price index rose 7.61% in the 12 months to 26 April 2008, marginally higher than previous week's annual rise of 7.57%, government data showed on Friday, 9 May 2008. The rate was the highest since an annual reading of 7.68% on 13 November 2004.
Finance Minister P Chidambaram on 9 May 2008, said the government has asked cement companies to reduce prices to curb inflation.
Crude oil for June 2008 delivery hit a record high $125.12 a barrel in electronic trading on the New York Mercantile Exchange on Friday, 9 May 2008. It is set for the biggest weekly gain since March last year, as concern violence in Nigeria will cut supply spurred speculative buying.
Sensex sheds 344 points on weak global cues, higher inflation
The market tumbled today hit by a series of bad news on the domestic and global front. India's inflation surged to more than 3-year high, global markets declined and crude oil hit yet another record high near $125 a barrel.
All the sectoral indices on BSE, barring FMCG index, were in red. Oil & gas, realty and banking stocks declined sharply.
Inflation based on wholesale prices rose 7.61% in the 12 months to 26 April 2008, marginally higher than previous week's annual rise of 7.5%, government data released in early afternoon trade showed.
European markets, which open after Indian markets, were trading sharply lower. Key indices in UK, France and Germay were down by 1.52% to 2.48%. Asian markets, which opened before Indian market, were trading lower. Key indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan were down by 0.84% to 2.06%.
US stock futures were in the red indicating weak opening on the Wall Street today after the world's largest insurer, American International Group, posted record quarterly losses, and as the oil price hit new high. Dow futures were down 77 points and S&P 500 futures were down 8 points.
The 30-share BSE Sensex lost 343.58 points or 2.01% at 16,737.07. The index shed 401.71 points at day's low of 16,678.94, hit at the fag end of the trading session. Sensex rose 45.3 points at the day's high of 17,125.95, hit in early trade.
The broader based S&P CNX Nifty lost 99.10 points or 1.95% at 4982.60. Nifty May 2008 futures were at 4978, a discount of 4.6 points as compared to spot closing.
As per provisional data, foreign funds sold shares worth a net Rs 619.34 crore today. Domestic funds bought shares worth a net Rs 180.16 crore.
The Sensex declined 863.05 points or 4.90% this week, from 17,600.12 on 2 May 2008.
The market breadth was weak on BSE with 704 shares advancing as compared to 2019 stocks that declined. 61 stocks remained unchanged.
The BSE Mid-Cap index fell 2.25% to 6,992.66 and BSE Small-Cap index fell 2.11% to 8,505.64. Both the indices underperformed the Sensex.
BSE clocked a turnover of Rs 6561 crore as against Rs 5,965.87 crore on Thursday, 8 May 2008. The NSE's futures & options (F&O) segment turnover was Rs 34,951 crore, which was higher than Rs 28,943.79 crore on Wednesday, 7 May 2008.
Top Sensex gainers were, ITC (up 1.51% at Rs 218.30), Wipro (up 0.81% at Rs 501.20), Satyam Computer (up 0.49% at Rs 473.40), Grasim Industries (up 0.35% at Rs 2340), and ONGC (up 0.04% at Rs 1028.80).
India’s biggest cellular service provider by market share Bharti Airtel gained 1.76% to Rs 842.20. Some reports suggested Bharti Airtel may make an offer to acquire MTN Group next week.
Top Sensex losers were, Jaiprakash Associates (down 6.60% at Rs 251.30), Reliance Infrastructure (down 4.45% at Rs 1332.05), ACC (down 4.20% at Rs 712), and Hindalco Industries (down 3.61% at Rs 173.55).
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 5.19% at Rs 2527.65.
The BSE Bankex underperformed the Sensex, falling 2.78% to 8,511.65. India’s largest private sector bank by assets ICICI Bank fell 1.94% to Rs 874.05. HDFC Bank (down 3.74% at Rs 1451.95), State Bank of India (down 3.13% at Rs 1675.70) and Housing Development Finance Corporation (down 2.79% at Rs 2644.70), declined.
Private sector lender Kotak Mahindra Bank fell 5.78% to Rs 737.15. Global investment firm Credit Suisse has cut its rating on the stock by 20% to Rs 708 a share.
The BSE Oil & Gas index underperformed the Sensex, falling 4.71% at 11,080.88. Essar Oil (down 10% at Rs 257.15), Reliance Petroleum (down 8.03% at Rs 181.05), Reliance Natural Resources (down 5.86% at Rs 106.80), BPCL (down 2.51% at Rs 374.90), HPCL (down 1.56% at Rs 242.30), and Indian Oil Corporation (down 1.59% at Rs 442.65), slumped.
The BSE Realty index underperformed the Sensex, falling 2.95% to 7,891.10. Housing Development & Infrastructure (down 7.63% at Rs 725.90), Omaxe (down 5.04% at Rs 216.50), Unitech (down 4.59% at Rs 286.55), and DLF (down 2.08% at Rs 630.40), tumbled.
Among the side counters, Spice Communication (down 8.60% at Rs 40.40), Lanco Infratech (down 8.39% at Rs 463.70), Bombay Dyeing (down 7.83% at Rs 906.35), Chennai Petroleum (down 7.79% at Rs 350.80), and Reliance Capital (down 7.04% at Rs 1,287.40), slumped.
Electronic display units maker MIC Electronics rose 0.28% to Rs 905.10 after the firm said its board will meet on 19 May 2008 to consider splitting each share into five.
Train wagon maker Texmaco jumped 4.14% to Rs 1510.55 after the firm said its board would meet on 16 May 2008 to consider a stock split
India’s largest dry cell battery manufacturer by sales Eveready Industries India gained 0.90% to Rs 45.05 after the company reported lower net loss of Rs 8.16 crore in Q4 March 2008 compared to net loss of Rs 26.45 crore in Q4 March 2007. Sales rose 10.40% to Rs 193.20 crore in Q4 March 2008 over Q4 March 2007.
IT firm 3i Infotech fell 0.94% to Rs 125.80. The firm said on Thursday it has acquired 26% stake in Hyderabad-based IT infrastructure services firm Locuz Enterprise Solutions, for an undisclosed sum.
Aishwarya Telecom clocked the highest turnover of Rs 502.20 crore on BSE. Reliance Petroleum (Rs 291.21 crore), Reliance Capital (Rs 283.57 crore), Reliance Industries (down 268.66 crore) and IFCI (Rs 173 crore), were the other turnover toppers on BSE in that order.
Aishwarya Telecom reported the highest volume of 5.37 crore shares on BSE. IFCI (2.81 crore shares), Ispay Industries (1.56 crore shares), Reliance Petroleum (1.5 crore shares) and Reliance Natural Resources (1.21 crore shares), were the other volume toppers on BSE in that order.
US markets rebounded from early lows on Thursday, 8 May 2008, led by technology stocks. Retailers' monthly sales reports also helped ease concerns about an economic downturn. The Dow Jones industrial average rose 52.43 points, or 0.41%, to 12,866.78. The Standard & Poor's 500 index gained 5.11 points, or 0.37%, to 1,397.68, and the Nasdaq Composite index advanced 12.75 points, or 0.52%, to 2,451.24.
Market to stay cautious ahead of inflation data
The market is likely to turn cautious ahead of inflation data to be released for the week ended 26 April 2008 by noon today. Soaring crude oil prices and no visible cooling in the prices of primary articles, inflation is likely to be more or less near previous week’s levels.
The spiralling inflation has been the biggest cause of concern for Indian equities market. The wholesale price index (WPI) in the week ended 19 April 2008 had galloped to a fresh three-and-a-half-year high of 7.57% from 7.33%. The WPI remained above the 7%-mark (significantly above RBI's revised target of 5.5% for the year) for the past four weeks.
The recent rally in crude oil may also continue to weigh on investor sentiment. Oil rallied to strike a fresh record to an all-peak of $124.61 a barrel, after settling up 16 cents at $123.69 yesterday, 9 May 2008 as strong diesel demand outweighed signs of rising OPEC supplies.
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 1601 companies showed 17.90% rise in net profit on 22.60% rise in net sales in Q4 March 2008 over Q4 March 2007, so far. There was 29.50% rise in net profit on 23.30% rise in net sales in the year ended March 2008 over year ended March 2007.
Meanwhile in a meeting held yesterday, 8 May 2008, the Bank of England and the European Central Bank have both kept interest rates unchanged at 5% and 4% respectively, as expected. Most experts now predict that both central banks are likely to cut rates by the end of the year to shore up stumbling economies.
Asian markets were mixed today, 9 May 2008. Nikkei (down 0.91% at 13,815.68), Hong Kong's Hang Seng (down 0.16% at 25,409.01), Taiwan's Taiwan Weighted (down 0.27% at 8,842.47), South Korea's Seoul Composite (down 0.98% at 1,829.86) declined.
However, Singapore's Straits Times (up 0.13% at 3,175.89) and Shanghai Composite (up 0.73% at 3,683.70) advanced.
US markets rebounded from the early lows on Thursday, 8 May 2008, led by technology stocks. Retailers' monthly sales reports also helped ease concerns about an economic downturn.
The Dow Jones industrial average rose 52.43 points, or 0.41%, to 12,866.78. The Standard & Poor's 500 index gained 5.11 points, or 0.37%, to 1,397.68, and the Nasdaq Composite index advanced 12.75 points, or 0.52%, to 2,451.24.
Back home, the market succumbed to selling pressure for the forth straight session yesterday, 8 May 2008, as weak global equities and soaring crude oil prices worried investors. The 30-share BSE Sensex fell 258.66 points or 1.49% at 17,080.65 whereas the broader based S&P CNX Nifty slipped 53.8 points or 1.05% at 5081.70 on that day.
As per provisional data, foreign funds sold shares worth a net Rs 724.49 crore yesterday, 8 May 2008. Domestic funds bought shares worth a net Rs 609.51 crore on that day.
Pre Session Commentary - May 9 2008
Today the market is likely to have negative opening due to weak cues from the Asian markets. On Thursday, the Indian market closed with heavy losses due to heavy selling pressures across the sectoral indices. Due to lack of investors interest in buying as the cues from the global markets like the crude oil prices reached to record high of $123 a barrel led the investors to take cautious steps to book their further positions. 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. We expect that the market may remain volatile during the trading session and the declaration of the inflation figures by the government will give further direction to the market.
On Thursday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 52.43 points at 12,866.78 along with S&P 500 grew by 5.11 points to close at 1,397.68 and NASDAQ higher by 12.75 points to close at 2,451.24.
Indian ADRS closed in red. In technology sector, Infosys fell by 0.95% along with Patni Computers by 1.62%. In banking sector, HDFC bank and ICICI bank dropped by (0.08%) and (2.71%) respetively. In telecommunication sector, MTNL and Tata Communication slipped by (0.98%) and (0.88%). Dr Reddy’s declined by (0.58%).
Today the major stock markets in Asia are trading weak. Japan’s Nikkei is trading lower by 127.58 points at 13,815.68 along with Hang Seng index trading down by 40.78 points at 25,409.01 and Taiwan Weighted trading at 8,842.47 down by 24.15 points.
The FIIs on Thursday stood as net buyer in equity while net seller in debt. The gross equity purchased was Rs3,475.70 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,110.60 Crore and gross debt sold stood at Rs12.60 Crore. Therefore, the net investment of equity reported was Rs325.10 Crore and net debt was (Rs12.60) Crore.
Today, Nifty has support at 4,947 and resistance at 5,148 and BSE Sensex has support at 16,719 and resistance at 17,330.
Today's Pick - Great Offshore
We recommend a buy in Great Offshore from a short-term perspective. It is clearly visible from the charts of the stock that it has been on a modest medium-term uptrend (forming higher peaks and higher troughs) from its March 2008 low of Rs 560 level.
This up trend gained strength in mid-April as the stock penetrated its medium-term down trend line and also moved above the 21-day moving average. There has been a conclusive breakout on May 8 on which day the stock penetrated the 50-day moving average and gained 5 per cent. Volume was strong during this medium-term uptrend.
The daily relative strength index has entered the bullish zone. Moreover, the daily moving average convergence and divergence is on the verge of entering the positive territory. Our short-term forecast for the stock is bullish. We expect the stock’s medium-term uptrend to continue until it hits our price target of Rs 800 in the upcoming sessions. Investors with short-term perspective can buy the stock while keeping the stop-loss at Rs 667.
US Market registers modest gains
Indices give up half of their gains in the second half as crude stays at all time high
US Market registered modest gains today, Thursday, 08 May, 2008. A better than expected retail sales data in April did take market higher considerably up after the opening bell. But market gave up more than half of its gains post lunch hours. Ultimately it ended the day with modest gains. Crude prices soaring above $124/barrel once again sent a vibe of negative feeling across the market. Seven of the ten major economic sectors finished higher. Financials once again led the group of negatives.
The Dow was up 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 52.4 points at 12,866.7. The Nasdaq Composite Index, finished higher by 12.7 points at 2,451.2. S&P 500 finished higher by 5.1 points at 1,397.5.
Twenty out of thirty Dow components ended in the green today. Wal-Mart was one of the main Dow winners while AIG was one f the main Dow laggards.
Among major economic news of the day, several key retailers reported positive same-store sales results for April. Wal-Mart reported an increase of 3.2%, excluding fuel sales. Costco announced 8% growth. Target announced growth of 3.1%, though the results were slightly below what the company planned.
Wholesale inventories for March declined 0.1%, which is below the 0.5% growth that economists anticipated. Last month's reading was revised lower to 0.9% growth from an initial reading of 1.1% growth.
Also, initial jobless claims for the week ending 3 May totaled 365,000, which is below the consensus forecast of 370,000 claims. The prior week's jobless claims were revised higher to 383,000 from 380,000. Notably, the four-week average has increased to 367,000 from 364,500. However, the weekly figures remained inconsistent with levels associated with a recession.
Indian ADRs ended mixed today. ICICI bank and Sify were the main two laggards.
Crude-oil futures touched a fresh record once again above $124 today. Weaker dollar and tensions regarding overall global supplies were the main reasons to push crude prices higher today. Prices for crude oil have been hovering around $124 against a backdrop of disruptions to oil production in Nigeria. Crude-oil futures for light sweet crude for June delivery closed at $123.69/barrel (higher by $0.16/barrel or 0.1%) on the New York Mercantile Exchange. Price touched a high of $124.5 earlier during the day. In the past five sessions, crude prices have gone up by almost $11.2 (9.9%). For the year, crude is up by 26.8% till date.
On the currency markets today, the dollar was modestly lower losing ground to the euro and the pound after both the European Central Bank and the Bank of England both decided to hold policy steady. ECB President Jean-Claude Trichet cited inflation risks in his statement, further bolstering the common currency. The dollar index, which measures the greenback against a basket of six major currencies, fell 0.2% to 73.37.
For tomorrow, the March trade balance is the sole item on the economic calendar.
Morning Call - May 9 2008
Market Grape Wine :
In House :
Nifty at a support of 5055 and 5010 resist of 5145 and 5202
Cash:
Buy: Lichousing above 361 tgt of 376 with a SL of 354
Buy: Jpassociate above 272.50 tgt of 287 with a SL of 265
F&O:
Buy: Renuka above 137 tgt of 145 with aSL of 132
Out House :
Markets at a support of 17021 & 16886 and resistance at 17217 & 17373 levels .
Buy : EssarOil & RPL
Buy : RIL
Buy : Infy & Wipro
Buy : NTPC & RPower
Buy : BombayDye
Buy : SKumar
Buy : Coreproject & LKP
Dark Horse : SKumar , EssarOIL , CORE, BombayDye , GujNRE & RPL
TGIF : Thank God Its Friday : Markets consolidating with Inflation expected at 7.62 today , keep strict stop loss for your trades .
Trading Calls - May 9 2008
Nifty (5082) Sup 5030 Res 5150
Buy BRFL (390) SL 385
Target 399, 401
Buy ABAN Offshore (3810) SL 3790 Target 3870, 3890
Buy Great Offshore (709) SL 703 Target 722, 725
Sell Bank of Baroda (300) SL 305 Target 290, 288
Sell Alstom Projects (620) SL 626 Target 605, 602
Global softening, inflation in focus
Success is the ability to go from one failure to another with no loss of enthusiasm.
The bulls certainly lack enthusiasm at the moment, and conviction as well to build on last month's rally. Losses mounted for the bulls yesterday even as crude oil repeatedly touched new all-time highs, stoking fresh concerns over inflation, which is already at a 3 1/2 year peak. The Government will announce its latest data on inflation at noon today, and the same is likely to increase further from 7.57%. However, it has been observed that the market at times have completely brushed aside rising inflation and has charted its own course. Last Friday was a case in point when the Sensex rallied by over 300 points despite inflation touching a 42-month high. The same trend may play out today as well, especially because the Sensex has lost more than 500 points this week. Having said that one should not fooled by any spurt, as the market is most likely to witness profit booking on every rally. Any fresh purchases should be restricted to high-quality stocks (preferably large caps) with clear visibility in terms of earnings growth. That too should be done in smaller chunks.
One should not get carried away by momentum in any scrip, as the trend could reverse rapidly. The market is still facing several headwinds, both local as well global. We are unlikely to see a one-way movement this year unless the factors that are hurting the market sentiment turn around. This may take a while. The market doesn't like uncertainty. And, with no immediate triggers for a big-bang rally, the market is expected to swing in a range of a few thousand points (Sensex: 16k-18k) with alternate bouts of buying and selling. Today, we expect yet another cautious to lower opening for the market. Asian markets have turned sharply lower after a flat opening. The Hang Seng was last seen down over 400 points, while The Nikkei was down by more than 100 points at mid-day break. The trend will remain dull till inflation numbers are out. Thereafter, its anybody's guess, though the bulls would be hoping for a better end to what has been a bad week.
FIIs were net sellers of Rs7.24bn (provisional) in the cash segment yesterday while local institutions poured in Rs6.1bn. In the F&O segment, foreign funds were net sellers of Rs13.69bn yesterday. On Wednesday, FIIs were net buyers of Rs3.25bn. Mutual Funds were net sellers of Rs231mn.
Key Results Today: Apollo Tyres, Asian Paints, Bharat Bijli, Kotak Mahindra Bank, Novartis India, Shalimar Paints and Su-Raj Diamond.
Meanwhile, the rupee fell to the lowest level in almost 13 months as crude oil traded near an all-time high, boosting demand for dollars from oil refiners. Crude oil is up 10% in the past week. " The rupee's fall reflects the uncertainties in global financial markets," said RBI Governor YV Reddy. Apparently, there were no dollar sales by either RBI or exporters. A weak stock market also hurt sentiment on the rupee.
The rupee declined 0.9% yesterday to 41.7375 per dollar, the lowest close since April 20, 2007. It is down 2.7% this week, the most in a five-day period since November 1997. The local currency may fall to 42 in the coming days, according to currency experts.
Asian stocks were mostly down for a third day, led by automakers and technology companies, after Toyota and Olympus forecast lower profits on rising raw material costs.
Toyota shares slumped after saying higher gasoline prices and a US economic slowdown will erode profit. Olympus tumbled the most in three months. BHP Billiton and Japan's Inpex Holdings gained after oil futures traded above $124 a barrel.
The MSCI Asia Pacific Index was down 0.5% at 149.90 as of 11:02 a.m. in Tokyo, after earlier advancing as much as 0.1%. The benchmark is poised for a five-day, 1.3% fall, its worst weekly performance in two months and snapping a two-week rally.
Japan's Nikkei 225 Stock Average was down 0.9% at 13,815.68. Australia's S&P/ASX 200 index climbed 1.2%, the biggest gain in the region, after National Australia Bank announced a 26% increase in its profit. Most other Asian markets declined.
US stocks rose marginally on Thursday, as investors welcomed some better-than-expected April retail sales. But, gains were capped by record-high oil prices and weakness in the financial sector.
Wal-Mart rose as the retail giant reported better than expected sales. News Corp. jumped on revenue that was lifted by advertisements for American Idol and the Super Bowl.
Freeport-McMoRan Copper & Gold and Chevron helped send raw-material and energy companies to the biggest gains in the S &P 500 Index. Alcoa climbed to a six-month high after naming a new CEO.
The S&P 500 added 5.11 points, or 0.4%, to 1,397.68. The Dow Jones Industrial Average gained 52.43 points, or 0.4%, to 12,866.78. The Nasdaq Composite Index rose 12.75 points, or 0.5%, to 2,451.24. About six stocks gained for every five that fell on the New York Stock Exchange.
Seven of 10 industry groups in the S&P 500 advanced as the market was also boosted by a government report that showed that initial jobless claims dropped last week more than economists had forecast.
With most of the quarterly earnings reports already having been released, the focus over the next few weeks will be on the economic news and the direction of commodity prices.
AIG shares dropped 2.1% after a S&P equity analyst slashed her forecasts for the insurance major ahead of it's first-quarter results. After the close, AIG reported a steeper-than-expected quarterly loss of $7.8bn and said it will look to raise $12.5bn in capital.
The national average price for a gallon of regular unleaded gas rose to a record $3.645 from $3.618 the previous day, according to AAA.
US light crude oil for June delivery rose 16 cents to settle at a record $123.69 a barrel on the New York Mercantile Exchange Thursday. Oil hit a record $124.49 in after-hours electronic trading.
COMEX gold for June delivery rose $11.10 to $882.30 an ounce. The dollar was little changed versus the euro and fell against the yen. Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.78% from 3.84% late on Wednesday.
The number of Americans filing new claims for unemployment fell by 18,000 last week to 365,000. Economists thought claims would post a narrower drop to 375,000 new claims.
Another economic report showed that wholesale inventories fell 0.1% in March, missing forecasts for growth of 0.5%. February's reading was revised down to growth of 0.9% from an initial reading of 1.1%.
Banking major Citigroup is holding an investor conference on Friday. It is likely to announce its strategy to deal with the ongoing crisis.
Most European stock benchmarks ended lower, as the European Central Bank and the Bank of England kept interest rates on hold, flagging inflation concerns. The pan-European Dow Jones Stoxx 600 index closed nearly unchanged at 329.28, with banks leading the decline.
ECB President Jean-Claude Trichet emphasized that inflation risks remain to the upside. After the comments from Trichet, the euro firmed and stocks moved further into the red.
The German DAX 30 ended 0.1% lower at 7,071.90, while the French CAC-40 slipped 0.4% to 5,055.58 and the Italian S&P/MIB index closed 1.3% lower at 34,082.00. The UK's FTSE 100, however, gained 0.2% to 6,270.80.
In the emerging markets the trend was mixed. The Bovespa in Brazil was up 1% at 69,722 while the IPC index in Mexico finished flat at 30,751. The RTS index in Russia surged by 3.75% to 2283 and the ISE National 30 index in Turkey slid 2.9% to 52,071.
Outlook remains cloudy
Losing streak for the bulls extends to fourth trading session on back of weak global cues and all round selling pressure. After starting off with a negative gap down, bulls were unable to stage a comeback led by fall in the Banking, IT and the capital Good stocks. The IT stocks after being in the upward trend in the past trading sessions also were under pressure after U.S. based Cognizant Technology Solutions Corp. forecast second-quarter profit and sales that missed analysts' estimates.
Finally, the BSE benchmark Sensex ended 258 points lower to close at 17,080 and the Nifty index lost 53 points to close at 5,081.
Overall about 1,106 stocks advanced; 1,589 stocks declined while 51 stocks remained unchanged. Among the 50-Nifty 35 stocks ended in red and 15 stocks ended in green.
Among the BSE Sectoral indices, BSE Bankex index (down 3%), BSE IT index (down 3%) and BSE FMCG index (down 2.7%). The BSE Metal index was the only gainer (up 0.5%).
TCS declined by 2.2% to Rs943. The company announced that it has renewed its managed services contract with one of the world’s leading long haul airlines Virgin Atlantic. By entrusting the management of its IT infrastructure and applications management to TCS, Virgin Atlantic is in a position to focus on core business activities and flex with the future challenges of the international airline industry. The scrip touched an intra-day high of Rs971 and a low of Rs919 and recorded volumes of over 2,00,000 shares on BSE.
Uttam Galve steels dropped by over 3% to Rs38 after the company said that it cut galvanized steel prices. The scrip touched an intra-day high of Rs40 and a low of Rs38.45 and recorded volumes of over 76,000 shares on BSE.
Ashok Leyland declined by over 3% to Rs40. The company announced that its Q4 net profit was at Rs1.81bn (up 5.2%) revenues were at Rs25.7bn (up 11.2%). The scrip touched an intra-day high of Rs41 and a low of Rs40 and recorded volumes of over 31,00,000 shares on BSE.
Patni Computer was down by a 2% to Rs271. The company on Thursday announced that it has partnered with Schindler, a leading global mobility company, for the development, enhancement and testing services for Schindler's double-deck elevator. The scrip touched an intra-day high of Rs283 and a low of Rs267 and recorded volumes of 1,00,000 over shares on BSE.
IFCI was down by 3.5% to Rs60 after LIC seeks to dilute its holding in the company and is awaiting cues from the government on its future strategy, reports stated. The insurance major has approached the IFCI management to reduce its holding from 11.39% to 8.39%, the level it was at prior to conversion of debt into equity earlier this year, according to reports. The scrip touched an intra-day high of Rs61 and a low of Rs57 and recorded volumes of over 14,00,000 shares on BSE.
Videocon Industries was up by 3% to Rs366 after reports stated that the company would be setting up a multi-product industrial park and a 1,320 MW thermal power plant in the West Godavari District of Andhra Pradesh. The scrip touched an intra-day high of Rs372 and a low of Rs345 and recorded volumes of over 6,00,000 shares on BSE.
Indiabulls Real Estate dropped by over 1.5% to Rs547. The company announced that it acquires Dev Property development. The scrip touched an intra-day high of Rs554 and a low of Rs520 and recorded volumes of over 5,00,000 shares on BSE.
HCL Technologies declined by over 2% to Rs288. The company has announced a significantly expanded partnership with Serena Software, Inc. Further strengthening a seven relationship between the two companies, HCL will now provide end-to-end product development, sustenance engineering and release managemønt for Serena PVCS Professional and Serena Dimensions RM, and will open a dedicated offshore development center for Serena. The scrip touched an intra-day high of Rs295 and a low of Rs283 and recorded volumes of over 39,000 shares on BSE.
MRPL was down by over 5% to Rs97. During the Q4 ended 31st March 2008, MRPL recorded tunover of Rs1081.2mn and earned net profit of Rs22.5mn after providing the interest Rs3.6mn, Depreciation Rs9.5mn and Tax Provision Rs8.4mn. During the Financial year ended 31st March 2008, company has earned net profit of Rs127.2mn as compared to Rs52.5mn in the previous year, after providing interest and finance charges of Rs14.8mn, depreciation of Rs37.8mn and tax liability of Rs46.1mn.The exports during the year were Rs1123.2mn. The scrip touched an intra-day high of Rs102 and a low of Rs96 and recorded volumes of over 25,00,000 shares on BSE.
Tata Investment gained by 2.5% to Rs542 after the company announced that the Board of Directors of the Company would meet on May 16, 2008 to consider raising of additional long term funds. The scrip touched an intra-day high of Rs550 and a low of Rs530 and recorded volumes of over 5,000 shares on BSE.
Corporate News
BHEL to invest Rs10bn in Tiruchi plant in the current fiscal. (BL)
Lafarge leads the race to acquire L&T Concrete; deal size estimated at Rs10bn. (BS)
Tata Steel raises Rs20bn via private placement of redeemable non-convertible rupee debentures. (BL)
Hungary’s MOL acquires 35% stake in ONGC’s onshore block in North-West India. (BL)
Suzlon’s operations at Sangli and Satara in Maharsahtra hit a roadblock due to local ire. (FE)
ACC to hold cement prices over the next 2-3 months. (BL)
TCS to renew contract with Virgin Atlantic till 2011. (ET)
Canara Bank, HSBC and OBC gets IRDA license to jointly launch a life insurance company in India. (BS)
BHEL plans JVs with APGenco and Tamil Nadu power board. (BS)
JSW Steel reduces prices of HR, CR and galvanized products by Rs4,000/tonne. (FE)
Satyam Computers is looking at new markets besides the US for its SAP business. (FE)
PTC to spend Rs3bn for acquiring coal assets in Indonesia. (DNA)
DoT defers decision on 26% stake sale in Tata Communication. (BL)
Indiabulls Real Estate files for IPO in Singapore. (BS)
RCF is looking at opportunities for joint ventures in African nations. (BL)
MTNL to launch mobile TV services. (ET)
Indiabulls Real Estate to buy 100% shares of Dev Development Property. (BS)
3i Infotech picks up 26% stake in Hyderabad-based Locuz Enterprise Solutions. (BL)
Shree Cement to spend Rs3.5bn to further expand capacity at its Rajasthan unit. (BL)
Thermax to invest Rs2bn in FY09 for expansion. (BL)
Garware Offshore to buy a new vessel from Singapore for US$15.5mn. (DNA)
Merck targets a turnover of Rs18bn by 2015 from its India operations. (FE)
NIIT Tech gets order worth Rs420mn form Maharashtra Government. (DNA)
Nagarjuna Fertilizers plans to set-up overseas plants and a foray into complex fertilizers. (DNA)
Tata Metaliks plans to set-up projects in Madhya Pradesh and Karnataka; signs MoUs to secure raw material linkages. (BL)
Jubilant Organosys acquires Specialty Molecules, a niche manufacturer of specialty intermediates, for Rs200mn. (BL)
S Kumars acquires a controlling stake in Italy’s Klopman for US$107mn. (ET)
EXL services eyes mid-sized companies in US and India. (BS)
Ramsarup Industries to invest Rs15bn in next two years. (BS)
Samtel enters into JV with Thales to make cockpit helmets. (ET)
Economic News
Government has imposed a temporary ban on exports of pig iron by PSUs. (ET)
Government mulls over a proposal to scarp license fees for landline operators. (BS)
Cement producers assures government of a price cut. (FE)
DTH operators to charge carriage fee from new channels for shoring-up revenues. (ET)
Auto companies to hold price hikes after steel companies announced cut in prices. (ET)
DLF seeks govt approval for FDI
Country's largest realty firm DLF, which has tied up with Dubai-based developer limitless for developing Rs 60,000-crore township in Bangalore, has sought government approval for bringing in foreign direct investments worth 150 million dollars.
Official sources said the issue would be taken by the foreign investment promotion board (FIPB) tomorrow, adding it is likely to get approval.
However, the foreign investment proposal would be given the final clearance by Finance Minister P Chidambaram, after the board's recommendation.
Limitless, a part of Dubai world company, will initially bring 150 million dollars as equity to part finance the project, market sources said.
DLF plans to develop a huge integrated township spread over 9,178 acre on the outskirts of Bangalore at an estimated investment of up to Rs 60,000 crore over the next seven years.
The Karnataka government awarded the project to develop Bidadi knowledge city to DLF in October last year.
The realty firm would develop the project in a 50:50 joint venture with limitless.
Total cost of the project is estimated at between Rs 50,000 crore and 60,000 crore, including Rs 3,600 crore for land. The investment would come from internal resources of the two partners and private equity at the project level.
The project was awarded to DLF, following a global tender issued by the Bangalore Metropolitan Regional Development Authority (BMRDA). The township, which would be positioned as new Bangalore, will be developed at about 30 km from the city of Bangalore and 15 km from Mysore.
Bullion metals rise again
A weak dollar pushes up the precious metals
Precious metals ended higher today, Thursday, 08 May, 2008. The weak dollar was the main reason for this. Higher crude prices also added to the reason behind the rise. Prices rose as crude touched a fresh new high at $124.5/barrel. Silver prices also rose for the day. Dollar weakness typically benefits dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies.
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 $10.9 (1.2%) to close at $882.1 ounce on the New York Mercantile Exchange. Yesterday, prices had dropped by more than $6. 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 5.5% for the till date against a 9.2% 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 17 cents (0.8%) to $16.87 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, the dollar was modestly lower losing ground to the euro and the pound after both the European Central Bank and the Bank of England both decided to hold policy steady. ECB President Jean-Claude Trichet cited inflation risks in his statement, further bolstering the common currency. The dollar index, which measures the greenback against a basket of six major currencies, fell 0.2% to 73.37.
In the energy market today, crude-oil futures touched a fresh record above $124.5 after traders continued to remain concerned regarding global oil supplies. Earlier in the day, crude prices fell, but it soon recovered and ended higher for the day.
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 204 (1.7%) at Rs 11,832 per 10 grams. Prices rose to a high of Rs 11,888 per 10 grams and fell to a low of Rs 11,621 per 10 grams during the day’s trading.
At the MCX, silver prices for July delivery closed Rs 318 (1.4%) higher at Rs 22,860/Kg. Prices opened at Rs 22,453/kg and rose to a high of Rs 23,067/Kg during the day’s trading.
Crude ends modestly higher
Crude rises for fifth straight day
Crude-oil futures touched a fresh record once again above $124 today, 08 May, 2008, Thursday. Weaker dollar and tensions regarding overall global supplies were the main reasons to push crude prices higher today. Prices for crude oil have been hovering around $124 against a backdrop of disruptions to oil production in Nigeria.
Crude-oil futures for light sweet crude for June delivery closed at $123.69/barrel (higher by $0.16/barrel or 0.1%) on the New York Mercantile Exchange. Price touched a high of $124.5 earlier during the day. In the past five sessions, crude prices have gone up by almost $11.2 (9.9%). For the year, crude is up by 26.8% till date.
On the currency markets today, the dollar was modestly lower losing ground to the euro and the pound after both the European Central Bank and the Bank of England both decided to hold policy steady. ECB President Jean-Claude Trichet cited inflation risks in his statement, further bolstering the common currency. The dollar index, which measures the greenback against a basket of six major currencies, fell 0.2% to 73.37.
EIA reported yesterday 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
June natural gas finished 7 cents lower at $11.26 per million British thermal units today. EIA reported today that natural-gas inventories rose by 65 billion cubic feet for the week ended 2 May. Total stocks now stand at 1.436 trillion cubic feet, down 284 billion cubic feet from the year-ago level and 11 billion cubic feet below the five-year average.
Against this backdrop, June reformulated gasoline closed up 2 cents at $3.14 a gallon while June heating oil rose 6 cents to end at $3.51 a gallon.
EIA reported earlier this week 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 5,095/barrel, higher by Rs 7 (0.13%) against previous day’s close. Natural gas for July delivery closed at Rs 467.3/mmbtu, higher by Rs 0.4/mmbtu (0.08%).
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