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Tuesday, June 17, 2008
NSE Bulk Deals to Watch - June 17 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
17-JUN-2008,GWALCHEM,Gwalior Chemical Industri,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,134364,95.06,-
17-JUN-2008,GWALCHEM,Gwalior Chemical Industri,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,BUY,203665,92.20,-
17-JUN-2008,GWALCHEM,Gwalior Chemical Industri,MANISH VRAJLAL SARVAIYA,BUY,292928,94.48,-
17-JUN-2008,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,BUY,231670,152.88,-
17-JUN-2008,SASKEN,Sasken Commu Techno Ltd,P R B SECURITIES PRIVATE LTD,BUY,210128,155.92,-
17-JUN-2008,SASKEN,Sasken Commu Techno Ltd,SUNDARAM MUTUAL FUND A/C. SUNDARAM SELECT MIDCAP,BUY,262779,150.45,-
17-JUN-2008,GWALCHEM,Gwalior Chemical Industri,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,134364,95.18,-
17-JUN-2008,GWALCHEM,Gwalior Chemical Industri,MANISH VRAJLAL SARVAIYA,SELL,292928,94.91,-
17-JUN-2008,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,SELL,231670,152.15,-
17-JUN-2008,SASKEN,Sasken Commu Techno Ltd,P R B SECURITIES PRIVATE LTD,SELL,210128,155.92,-
BSE Bulk Deals to Watch - June 17 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
17/6/2008 530721 ANG AUTO RAJASTHAN GLOBAL SECURITIES LTD B 425000 71.50
17/6/2008 530721 ANG AUTO LG INDIA FUND LIMITED S 531000 71.50
17/6/2008 532981 ANU LABS S.M.NISSAR B 206703 404.60
17/6/2008 532981 ANU LABS PRABHUDAS LILLADHER PVT. LTD. B 184731 405.72
17/6/2008 532981 ANU LABS N D NISSAR B 62738 406.89
17/6/2008 532981 ANU LABS KAUSHIK SHAH SHARES SEC PL B 158146 401.96
17/6/2008 532981 ANU LABS BHANDARI RAKHI KALPESH B 109995 406.71
17/6/2008 532981 ANU LABS RUPESH K DALAL B 169640 407.92
17/6/2008 532981 ANU LABS S.M.NISSAR S 206703 405.00
17/6/2008 532981 ANU LABS PRABHUDAS LILLADHER PVT. LTD. S 184731 406.17
17/6/2008 532981 ANU LABS N D NISSAR S 62738 406.82
17/6/2008 532981 ANU LABS KAUSHIK SHAH SHARES SEC PL S 156146 402.05
17/6/2008 532981 ANU LABS BHANDARI RAKHI KALPESH S 109995 404.18
17/6/2008 532981 ANU LABS RUPESH K DALAL S 169640 408.08
17/6/2008 503940 ASIAN ELECT U.S. INSTURMENTS PVT LTD B 1100000 123.43
17/6/2008 503940 ASIAN ELECT USHA SURESH SHAH S 1100000 123.43
17/6/2008 505678 C.P.E.C. SARIKA HUKUMSINGH RAJPUROHIT B 13350 65.00
17/6/2008 505678 C.P.E.C. MAHENDRA HUKUMSINGH RAJPUROHIT B 8300 65.00
17/6/2008 505678 C.P.E.C. LEELA HUKAMSINGH RAJPUROHIT B 8500 65.00
17/6/2008 505678 C.P.E.C. HUKAMSINGH B RAJPUROHIT B 8350 65.00
17/6/2008 505678 C.P.E.C. KOTICHA ASIT H.U.F. S 16750 65.00
17/6/2008 505678 C.P.E.C. KOTICHA SAMEER S 16750 65.00
17/6/2008 532271 CYBERMAT INF BASMATI SECURITIES PVT LTD S 513160 5.02
17/6/2008 531137 GEMSTONE INV ANKIT R. ANCHANIYA B 15000 21.95
17/6/2008 531137 GEMSTONE INV HEMANT M.SHETH B 15000 21.95
17/6/2008 531137 GEMSTONE INV HEMANT MADHUSUDAN SHETH S 38500 21.77
17/6/2008 531137 GEMSTONE INV BHAVESH PRAKASH PABARI S 30000 21.95
17/6/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD B 32644 25.80
17/6/2008 531602 KOFF BR PICT FORTUNE GILTS PRIVATE LIMITED B 25000 25.85
17/6/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD S 61304 25.85
17/6/2008 532884 REFEX REFRIG SANDHYA H JATANIA B 210000 219.20
17/6/2008 532884 REFEX REFRIG SANDHYA H JATANIA S 210000 219.00
17/6/2008 532884 REFEX REFRIG HIMAT PARSHOTTAMBHAI JATANIA S 476070 221.09
17/6/2008 526640 ROYALE M H I NISHA SUMAN JAIN B 94156 21.93
17/6/2008 532663 SASKEN COMM H.J.SECURITIES PVT. LTD. B 316679 154.53
17/6/2008 532663 SASKEN COMM SUNDRAM MUTUAL FUND B 190000 150.68
17/6/2008 532663 SASKEN COMM H.J.SECURITIES PVT. LTD. S 316679 154.65
17/6/2008 531431 SHAKTI PUMPS ROULEX INVESTMENT AND F P LTD B 83763 127.27
17/6/2008 505529 SHYAMLAL HOL EMPEROR CONSULTANCY SER. PVT. LTD. B 10450 5.67
17/6/2008 505529 SHYAMLAL HOL NIKHIL D PATEL HUF S 10450 5.67
17/6/2008 500420 TORRENT PHAR TORRENT PRIVATE LIMITED B 2582080 157.84
17/6/2008 500420 TORRENT PHAR U N MEHTA HUF S 1719448 154.30
17/6/2008 500420 TORRENT PHAR U N MEHTA HUF NO 2 S 862632 164.90
17/6/2008 531249 WELL PACK PA GUNVANT H RATHOD B 40000 32.35
17/6/2008 531249 WELL PACK PA VINOD KUMAR MAFATLAL PATEL S 25000 32.35
17/6/2008 531249 WELL PACK PA PUSHPABEN VINODBHAI PATEL S 76785 32.35
17/6/2008 531249 WELL PACK PA JIGAR JAYANTILAL SHAH S 50000 32.35
Post Session Commentary - June 17 2008
Indian market ended with handsome gains due to heavy buying support across the counters. The domestic market opened by showing a lot of volatility but bounced back and maintained the strength since afternoon. Further it continued to trade higher backed by easing crude oil price and favoring opening of the European markets that gave a support to the market. The BSE Sensex closed above 15600 mark and the NSE Nifty 4600 mark. The crude oil price reached an all time high of $139.89 a barrel on Monday and it slid back to $132.84 today before ending the day at $134.61. From the sectoral front, all indices closed in green and banking, capital goods, reality and oil & gas stocks held most of the gains of market. Metal index recovered after mid session and IT stocks recovered during final trading hours. The bank index outperformed as it advanced 4.29%. The market breadth was positive as 1,802 stocks closed in green while 882 stocks closed in red.
Regarding the advance tax payments, SBI has recorded a 32% growth in advance tax payment to Rs663 crore for April-June 2008 as against Rs503 crore reported last year. The ICICI bank’s tax outgo during the period stood at Rs340 crore from Rs250 crore last year. HDFC Bank has paid Rs140 crore making a growth of 40% over the last years of Rs95 crore. From the Oil and Gas sector, Reliance industries paid Rs340 crore during April-June 2008 representing a growth of 15% over the last year’s Rs295 crore.
The finance minister has projected a direct tax collection of Rs 3,65,000 crore for the current fiscal.
The BSE Sensex closed higher by 301.08 points at 15,696.90 and NSE Nifty ended up by 80.50 points at 4,653.00. The BSE Mid Caps and Small Cap closed positive with increase of 100.46 points and 112.19 points at 6,400.18 and 7,781.30 respectively. The BSE Sensex touched intraday high 15,732.75 and intraday low of 15,357.98.
Gainers from the BSE are HDFC (5.99%), Maruti Suzuki (5.22%), HDFC Bank (4.87%), ONGC (4.77%), SBI (4.57%), JP Assoc (4.51%), Reliance Infra (4.13%), L&T Ltd (3.73%) and DLF Ltd (2.99%).
The Banking index closed up by 311.54 points at 7,567.17. Gainers are IOB (8.49%), Axis Bank (7.89%), Kotak Bank (7.45%), Bank of India (5.92%), Bank of Barod (5.87%), OBC (5.60%) and Canara Bank (5.34%).
The Capital Goods index increased by 260.07 points to close at 12,363.27. Major gainers are Kirloskar Br Sr (4.82%), Areva (3.98%), L&T Ltd (3.73%), Punj Lloyd (3.48%), Alstom Proje (3.26%) and Praj Indus (2.91%).
The Reality Index closed higher by 228.32 points at 6,099.19. Gainers are Indiabulls Real (6.34%) along with Unitech Ltd (4.70%), Ansal Infra (4.36%), Anant Raj (4.46%), Pheonix Mill (3.90%), DLF Ltd (2.99%) and Housing Development (2.75%).
The Oil & Gas index closed up by 225.73 points at 10,241.79. As ONGC (4.77%), Essar Oil Ltd (3.92%), Reliance Petroleum (2.96%), Reliance Natural Resources (2.91%), HPCL (2.16%) and Reliance (1.94%) closed in positive territory.
The Metal index closed up by 142.09 points at 15,516.86. Gainers are SH Precoated (8.90%), Ispat Industries (3.29%), Jindal Steel (3.29%), Steel Auth (3.17%), Bhushan Steel (1.70%), and Gujarat Nre C (1.50%).
The Consumer Durables index increased by 79.52 points to close at 4,037.64 as Titan Ind (5.36%), Gitanjali Ge (1.57%), Blue Star L (0.95%), Videocon India (0.94%) and Lloyd Ele En (0.91%) closed in positive territory.
IT index advanced by 26.85 points to close at 4,440.20. Major gainers are Aptech Ltd (9.18%), Financ Tech (8.44%), I-Flex (4.51%), Tech Mahindra (3.03%) and NIIT Ltd (2.42%)
Upmove continues, Sensex sizzles past 15,650
Action continued on Dalal Street for the second straight session as the market brushed aside the flat Asian market trend. Overnight surge in global crude oil prices also failed to dampen the sentiment. The Sensex opened 8 points lower than its last close at 15,396 and touched the day’s low of 15,358 in early trades. However, the emergence of strong buying by mid-morning trades saw the index erase most of its loss and touch an intra-day high of 15,733, up 337 points from the yesterday's close of 15,396. Renewed buying, particularly, in the old economy heavyweights held the market firm thereafter and the Sensex ended the session with gains of 301 points at 15,697. The Nifty moved up 81 points to close at 4,653.
The market breadth was fairly positive. Of the 2,764 stocks traded on the BSE, 1,800 stocks advanced, 884 stocks declined and 80 stocks ended unchanged. All the sectoral indices ended in positive territory. The BSE Bankex index rose 4.29%, the BSE Realty gained 3.89%, the BSE Oil & Gas index added 2.25%, the BSE PSU was up 2.17%, the BSE CG was up 2.15% and the BSE CD was up 2.01%.
Leading the rally, HDFC zoomed 5.99% at Rs2,298.05. While Maruti Suzuki India soared nearly 5.22% at Rs755.60, HDFC Bank flared up 4.87% at Rs1,207.55. ONGC advanced 4.77% at Rs884.45, State Bank of India added 4.57% at Rs1,387.05, Jaiprakash Associates moved up 4.51% at Rs187.60 and Reliance Infrastructure was up 4.13% at Rs1,104.65.
Bankex stocks rallied sharply on strong buying support. Indian Overseas Bank raised 8.49% to close at Rs114.35. Axis Bank rose 7.89% at Rs794.20, Kotak Bank moved up 7.45 at Rs679. Federal Bank, Bank of India, Bank of Baroda, Oriental Bank, Canara Bank and Union Bank moved up 5-6% each.
Value wise, Anu’s Laboratories registered a turnover of Rs449 crore followed by Reliance Capital (Rs194 crore), Reliance Industries (Rs180 crore), Reliance Petroleum (Rs162 crore) and Larsen & Toubro (Rs127 crore).
Higher advance tax payment, good monsoon lift spirits
Bulls had an upper hand over bears for a second day in a row today with market sentiment boosted by reports of higher advance tax payment by top Indian firms in the first installment of 15 June 2008, reports of good monsoon in the initial phase and easing of oil prices from record high. Banking and realty shares led the rally.
The rally gathered strength in the second half of the trading session tracking firm European markets which opened after Indian market. All the sectoral indices on BSE were in green indicating that the rally was broad-based. Maruti Suzuki India, India's biggest car maker in terms of market share, spurted in the late trade.
As per provisional data, foreign funds bought shares worth a net Rs 142.36 crore today, 17 June 2008. Domestic funds bought shares worth a net Rs 420.08 crore.
European markets edged higher as reports suggested that the expectations of a US rate hike have been overplayed. Key indices in UK, France and Germany were up by 0.87% to 1.57%.
Asian markets were trading on a mixed note. Key indices in China, Japan, South Korea, and Singapore were down by 0.04% to 2.76%. However, Taiwan’s Taiwan Weighted index was up 0.39% and Hong Kong’s Hang Seng was up 0.12%.
The 30-share BSE Sensex gained 301.08 points or 1.96% at 15,696.90. At the day’s high of 15,732.75 Sensex gained 336.93 points at the fag end of the trading session. The index shed 37.84 points at the day’s low of 15,357.98, hit in early trade.
The broader based S&P CNX Nifty rose 80.5 points or 1.76% at 4653. Nifty June 2008 futures were at 4639.35, a discount of 13.65 points compared with the spot closing.
The BSE Mid-Cap index rose 1.59% to 6,400.18. The BSE Small-Cap index was up 1.46% to 7,781.30. Both these indices underperformed the Sensex.
The market breadth was strong on BSE with 1802 shares advancing as compared to 882 that declined. 80 remained unchanged.
BSE clocked a turnover of Rs 5312 crore as against Rs 4,537.92 on Monday, 16 June 2008. NSE's futures & options (F&O) segment turnover was Rs 42624.38 crore, which was higher than Rs 40166.83 crore on Monday, 16 June 2008.
As per reports, India's monsoon rains in the first half of June 2008 were more than 40% above the long-term average, raising hopes of strong crop output at a time when rising food prices have helped push inflation to 7-year highs.
Many companies have recorded a higher advance tax outgo in the first installment of 15 June 2008 compared to the corresponding period last year, raising expectations of good June 2008 results. The finance minister expects direct tax collection for the current year to cross Rs 4 lakh crore. Advance taxes are paid in four instalments, in June, September, December and March. Usually, the first instalment is 15% of the total tax estimated to be paid for the whole fiscal.
Oil steadied today, 17 June 2008, after touching a record near $140 the previous day, with traders caught between a weaker dollar and expectations that top exporter Saudi Arabia will ramp up output to its highest rate in decades. US crude slipped 15 cents to $134.46 a barrel after ending 25 cents lower on Monday, 16 June 2008, as traders quickly took profit from a rally to a record $139.89 triggered by a falling dollar and the closure of a North Sea oil platform.
India’s largest dedicated housing finance firm by operating income Housing Development Finance Corporation (HDFC) jumped 5.99% at Rs 2298.05. HDFC paid advance tax of Rs 140 crore in the first installment of 15 June 2008, marking an over 40% increase over the corresponding figure in the previous year.
India's largest passenger car maker in terms of market share Maruti Suzuki soared 5.22% at Rs 755.60 on reports the company plans to counter Ratan Tata's Nano with a stripped-down version of its flagship model Maruti 800.
Battered bank stocks rose on reports of higher advance tax paid by prominent banking/finance firms. The BSE Bankex outperformed the Sensex, rising 4.29% to 7,567.17. Indian Overseas Bank (up 8.49% at Rs 114.35), Axis Bank (up 7.89% at Rs 794.20), Kotak Mahindra Bank (up 7.45% at Rs 679), and HDFC Bank (up 4.87% at Rs 1207.55), spurted.
India's largest commercial bank State Bank of India rose 4.57% at Rs 1387.05. The bank recorded a 32% increase in advance tax payment to Rs 663 crore Q1 June 2008 over Q1 June 2007.
India's largest private sector bank by assets ICICI Bank rose 2.70% at Rs 820.25. The stock had hit a low of Rs 785.55 earlier in the day. ICICI Bank’s tax outgo jumped 38% to Rs 340 crore in Q1 June 2008 over Q1 June 2007. ICICI Bank paid advance tax of Rs 1,108.6 crore in the whole of last fiscal. ICICI Bank has a third highest weightage of 8.18% in BSE Sensex.
The BSE Realty index outperformed the Sensex, rising 3.89% to 6,099.19. Indiabulls Real Estate (up 6.34% at Rs 423.60), Unitech (up 4.70% at Rs 207.10), and DLF (up 2.99% at Rs 505.90), soared.
India’s second largest software exporter by sales Infosys Technologies rose 0.32% at Rs 1913.30. Infosys has a second highest weightage of 8.80% in BSE Sensex.
India’s second largest listed cellular service provider by sales Reliance Communication (RCOM) declined 0.92% to Rs 530.20. The stock is southward bound since Monday, 16 June 2008, after Reliance Industries, India’s largest private sector firm by market capitalisation and oil refiner, claimed first right of refusal to buy a controlling stake in it. Reliance Communications, controlled by Anil Ambani, is in exclusive talks with South Africa's MTN about a tie-up that could create a top-10 global telecoms firm. As part of a tie-up, Anil Ambani would likely swap his controlling stake in Reliance Communications to become the largest shareholder in MTN. On Monday, the RCOM stock had ended 1.52% lower at Rs 535.10.
Reliance Industries (RIL) rose 1.94% at Rs 2329.20. RIL has a highest weightage of 15.76% in BSE Sensex.
Anil Dhirubhai Ambani group Reliance Power rose 3.41% at Rs 191 on reports the firm will get a $500 million loan from the Asian Development Bank for its 4,000 megawatt ultra mega power project coming up in Andhra Pradesh.
Chemicals maker GHCL spurted 6.82% at Rs 77.55 on reports the Al Rostmani Group of the United Arab Emirates is planning to pick up a majority stake in the firm for an estimated Rs 700 crore.
Real estate developer Housing Development and Infrastructure (HDIL) rose 2.75% at Rs 606.15 on reports the firm is eyeing the power sector as part of its diversification strategy.
South Indian Bank surged 3.12% to Rs 127.15 after the private sector bank said its board will meet on 28 June 2008 to consider issue of bonus shares.
Commercial vehicles maker Ashok Leyland gained 0.92% to Rs 33.05 after the company said it has made a strategic investment in Albonair GmbH, Germany for development of vehicle emission treatment products.
Among side counters, Ravalgaon Sugar Farm (up 20% at Rs 5729.10), Torrent Pharmaceuticals (up 20% at Rs 185), Vaibhav Gems (up 20% at Rs 73.95), Essar Shipping (up 9.48% at Rs 129.90), UCO Bank (9.47% at Rs 42.20), Indiabulls Financial Services (up 9.01% at Rs 368.50), spurted.
Anu's Laboratories clocked a highest turnover of Rs 449.52 crore on BSE. Reliance Capital (Rs 194.12 crore), Reliance Industries (Rs 180.93 crore), Reliance Petroleum (Rs 162.72 crore) and Larsen & Toubro (Rs 127.31 crore), were the other turnover toppers on BSE in that order.
Chambal Fertilizers & Chemicals reported a highest volume of 1.22 crore shares on BSE. Anu's Laboratories (1.10 crore shares), Reliance Natural Resources (98.96 lakh shares), Nagarjuna Fertilizers & Chemicals (95.46 crore shares) and Reliance Petroleum (88.52 lakh shares), were the other volume toppers on BSE in that order.
US markets ended mixed in see-saw trade yesterday, 16 June 2008. A rally was sparked in banking stocks with Lehman Brothers declaring results in line with market expectations. The Dow Jones industrial average lost 38.27 points, or 0.31%, to 12,269.08. The S&P 500 index gained 0.11 points, or 0.01%, to 1,360.14. The Nasdaq Composite index added 20.28 points, or 0.83%, to 2,474.78.
Foreign institutional investors (FIIs) stepped up selling of Indian equities on Monday, 16 June 2008. As per data released by the Securities & Exchange Board of India (Sebi) today, 17 June 2008, foreign funds sold shares worth a net Rs 532.80 crore on 16 June 2008, much higher than their outflow of Rs 51.80 crore on the previous trading session on Friday, 13 June 2008. FIIs had pressed heavy sales worth Rs 1141.70 crore on Thursday, 12 June 2008.
The BSE Sensex had risen 206.20 points or 1.36% at 15,395.82 on Monday, 16 June 2008, on the back of firm global markets.
Grey Market Premiums - Archid Ply and more...
Bafna Pharmaceutical 40 7 to 10
Avon Weighing 10 5 to 6
Sejal Architectural Glass Ltd. 105 to 115 21 to 22
First Winners Ind. Ltd. 115 to 125 5 to 7
Archid Ply Ind. 70 to 80 7 to 9
Lotus Eye Care Hospital 38 to 42 4 to 6
Pre Session Commentary - June 17 2008
The Indian Market is expected to open positive on the back of mixed global cues as the US market closed mixed and Asian markets are also trading mixed. On Monday, the Indian market closed on positive zone due to heavy buying across the ground. The domestic market opened with positive note on the back of strong global cues and maintained the balance throughout the trading. From the sectoral front, realty, banking, metal, technology and oil & gas stocks held gains of market while consumer durables and auto stocks were out of favor during final trading hours. Due to increase in excise duty by Union government on large cars, multi-utility vehicles and sports utility vehicles with an engine cubic capacity exceeding 1500, auto stocks dropped. The BSE Sensex closed higher by 206.20 points at 15,395.82 and NSE Nifty ended up by 55.40 points at 4,572.50. We expect that market may give up some of its yesterday’s gains during the trading session.
Oil surged to a new record high on Monday of nearly $140 a barrel, pushed by weakness in the dollar which offset the bearish impact of plans by Saudi Arabia to increase output by the next month by about a half million barrels a day.
On Monday, U.S. stock indexes were mixed, due to rise in oil prices and fall in the U.S. dollar against the euro and the yen and also weakening of manufacturing in June for four times in five months. It softened 5 points to negative 8.7 in June. Lehman Brothers announcement also add on to negative sentiment about loss of $2.8 billion for second quarter.
The NASDAQ closed higher by 20.28 points at 2,474.78 along with S&P 500 up by 0.11 points to close at 1,360.14 while Dow Jones Industrial Average (DJIA) dropped by 38.27 points to close at 12,269.08.
Indian ADRs ended mixed. In technology sector, Patni Computers went up by (1.83%) while Satyam dropped by (1.28%) along with Wipro by (0.59%) and Infosys by (0.51%). In banking sector, HDFC bank and ICICI bank increased by (1.32%) and (0.63%) respectively. In telecommunication sector, MTNL advanced by (0.67%) while Tata Communication decreased by (2.55%). Sterlite industries inclined (1.36%).
Today the major stock markets in Asia are trading mixed. Hang Seng index is trading higher by 44.39 points at 23,074.08 along with Japan’s Nikkei trading up by 18.51 points at 14,372.88. However, Taiwan Weighted trading at 8,107.37 down by 62.40 points.
The FIIs on Monday stood as net seller in equity. The gross equity purchased was Rs2,712.10 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,763.90 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs51.80) Crore and net debt was Rs0.00 Crore
.
Today, Nifty has support at 4,468 and resistance at 4,635 and BSE Sensex has support at 15,126 and resistance at 15,590.
Market may be edgy
Overnight marginal gain in US markets and a sharp rise in several Asian indices in the ongoing trading session may help the domestic indices to gain further. However, lack of clarity in the market and higher volatility may drag down the market. Among the indices, the Nifty could test higher levels at 4635 and has a supports at 4535 and 4490. The Sensex has a likely support at 15135 and may face resistance at 15550.
US indices exhibited a mixed trend on Monday, with the Dow Jones moving down by 38 points to close at 12269 and the Nasdaq gaining 20 points to close at 2475.
Indian ADRs were largely mixed on the US bourses. Rediff jumped nearly 3.62%, Patni Computer, MTNL, ICICI Bank and HDFC Bank ended with modest gains. while Tata Motors, Dr Reddy, VSNL and Satyam ended with loss of around 1-3%. However, Infosys & Wipro slipped marginally.
Crude oil prices in the US market was marginally down, with the Nymex Light Crude oil for July 08 delivery lost 25 cents to close at $134.61 a barrel. However, in the Commodity space, the Comex gold for August 08 series gained $13.20 to settle at $886.30.
Range-bound moves likely
Local equities are likely to stay range-bound tracking mixed global cues. The advance tax figures of some leading banks and a few corporates for the April-June quarter of this fiscal provide some room for comfort. State Bank of India recorded a 32% increase in advance tax payment to Rs 663 crore for the Q1 2008 over Q1 2007. Reliance Industries (RIL), reported 15% rise in advance tax paid to Rs 340 crore in Q1 2008 over Q1 2007.
Advance taxes are paid in four instalments, in June, September, December and March. Usually, the first instalment is 15% of the total tax estimated to be paid for the whole fiscal.
However crude oil striking record high just under $140 a barrel may dampen sentiment. Light, sweet crude for July delivery fell 25 cents to settle at $134.61 a barrel yesterday, on the New York Mercantile Exchange after earlier soaring to a trading record of $139.89.
Also caution will prevail in the coming day’s on fears that the Reserve Bank of India (RBI), as part of its efforts to contain rising inflation, would resort to more measures to make banks’ lending rates dearer.
Inflation, measured by wholesale price index (WPI), jumped to a 7-year high of 8.75% in the week to 31 May 2008, after rising 8.24% in the previous week. The negative impact of higher lending rates would rub off on the entire economy. Such concerns over slowdown in economic growth are expected to keep the market choppy in the near term.
Also high interest rates may delay expansion plans of corporates, which in turn may impact future earnings growth.
Asian markets were trading mixed today, 17 June 2008. Shanghai Composite was up 0.31% or 8.99 points at 2,883.09, Nikkei gained 0.13% or 18.51 points at 14,372.88, Hong Kong's Hang Seng rose 0.19% or 44.39 points at 23,074.08.
However, Taiwan's Taiwan Weighted fell 0.76% or 62.40 points at 8,107.37, Singapore's Straits Times slipped 0.39% or 11.80 points at 3,025.12 and South Korea's Seoul Composite declined 0.87% or 15.31 points at 1,745.51
US markets ended mixed in see-saw trade yesterday, 16 June 2008. A rally was sparked in banking stocks with Lehman Brothers declaring results in line with market expectations.
The Dow Jones industrial average lost 38.27 points, or 0.31%, to 12,269.08. The S&P 500 index gained 0.11 points, or 0.01%, to 1,360.14. The Nasdaq Composite index added 20.28 points, or 0.83%, to 2,474.78.
Earnings downgrades by brokerages amid rising input and interest costs for India Inc and drying up of global liquidity due to credit crisis remain major concern for the Indian stock market. A further hike in rates would impact bottomline of Indian companies.
Back home, the market ended on a firm note yesterday, 16 June 2008, on the back of firm global markets. The 30-share BSE Sensex rose 206.20 points or 1.36% at 15,395.82 and the broader based S&P CNX Nifty gained 55.4 points or 1.23% at 4572.50, on that day.
As per provisional data, foreign funds sold shares worth a net Rs 547.84 crore yesterday, 16 June 2008. Domestic funds bought shares worth a net Rs 293.05 crore on that day.
Foreign institutional investors (FIIs) were net buyers of Rs 59.33 crore in the futures & options segment yesterday, 16 June 2008. They were net buyers of index futures to the tune of Rs 180.49 crore and sold index options worth Rs 257.05 crore. They were net buyers of stock futures to the tune of Rs 131.73 crore and bought stock options worth Rs 4.16 crore.
After short squeeze a flat day!
The thing to remember is that that the future comes one day at a time
As expected, the market rebounded on the back of short covering. Firm global markets and stable oil prices helped the bulls' cause. For the day, we expect the market to open on a flat to slightly positive note, as the short squeeze may continue. Global markets are mixed with no clear direction being exhibited by any region. As a result, the market may turn sideways with a positive bias unless we get fresh bad news. But, the bulls may just be able to hold on to their gains today.
F&O indicators suggest that there may be more upside in the offing. The Nifty futures expiring in June shed more than 20 lakh shares in open interest while the discount slumped from about 30 points to almost nil. With this, the total open interest in Nifty futures has slipped below 4 crore shares. Over the past few months there have been a few instances where the market trend has taken an about turn following this event. It remains to be seen if the bulls are lucky this time round as well.
The advance tax numbers for a few top companies are out and as usual it’s a mixed bag. Banks like ICICI Bank, SBI and HDFC have done well and so has Reliance Industries. Bajaj Auto, Tata Motors and Ambuja Cements have reported lower tax outgo versus the same period last year.
Results Today: BPCL, Bilpower, Cambridge Solutions, Chettinad Cement, IRB Infra, Jumbo Bag, Sical Logistics, Sri Digvijay Cement, Tantia Constructions, Tata Communications, Wire & Wireless and Zee News.
Cadila Healthcare's Board will meet today to consider options to consolidate / restructure the Consumer Products business of the group, including its listed subsidiary, namely Carnation Nutra-Analogue Foods Ltd.
Champagne Indage's Board will consider raising of long term / medium term financial resources.
Both L&T and Crompton Greaves have denied reports that L&T is doing due diligence to acquire Crompton Greaves' project business.
FIIs were net sellers of Rs5.48bn (provisional) in the cash segment on Monday while the local institutions poured in Rs2.9bn. In the F&O segment, foreign funds were net buyers of Rs593.2mn.
On Friday, FIIs were net sellers of Rs518mn in the cash segment. With this, they have pulled out over $5.4bn from the Indian market this year.
Asian stocks are trading mixed this morning. Japanese steelmakers are down after Mizuho Securities downgraded shares of JFE Holdings and Kobe Steel. BHP Billiton rose in Sydney after metals prices advanced. Tokyo Electric Power Co. led a gain by utilities.
The MSCI Asia Pacific Index fell 0.1% to 142.66 as of 9:41 a.m. in Tokyo. Japan's Nikkei 225 Stock Average was little changed at 14,351.08. Benchmarks in South Korea, Australia and New Zealand declined.
US stocks closed mixed on Monday after crude oil prices retreated after very nearly touching $140 per barrel and brokerage Lehman Brothers expressed optimism about its future, sparking a rally in financial shares.
"Our capital and liquidity positions have never been stronger," Lehman Brothers CEO Dick Fuld said during a conference call to discuss the company's $2.8bn quarterly loss.
Equities also regained some lost ground as crude oil futures closed 25 cents lower at $134.61 per barrel in New York after hitting the day's record high of $139.89 in electronic trading on Globex.
The Dow Jones Industrial Average fell 38.27 points, or 0.3%, to end at 12,269.08. The S&P 500 index finished virtually flat at 1,360.14. The Nasdaq Composite index climbed 20.28 points, or 0.8%, to end at 2,474.78.
Telecom stocks were hit after UBS cut its ratings on Verizon and AT&T. Citi led blue-chip gains, gaining 1.7%. AIG ended down 0.5%. On Sunday, the world's largest insurer said that Martin Sullivan was leaving as CEO and that chairman Robert Willumstad replacing him.
Stocks struggled in the morning as oil prices surged to a new record and investors considered Lehman Brothers' quarterly loss and the management shakeup in AIG. But stocks recovered in the afternoon as oil erased most of its gains and strength in tech and financials continued to dominate.
Oil prices had jumped earlier on the weaker dollar and reports of a North Sea rig fire. Reports that Saudi Arabia plans to boost oil production by 200,000 bpd had little impact on the price. Analysts think that an extra 200,000 bpd would mostly be eaten up by international demand.
The dollar fell versus the euro and gained against the yen. COMEX gold for August delivery rose $13.20 to settle at $886.30 an ounce. Treasury prices fell, raising the yield on the benchmark 10-year note to 4.27% from 4.25% late on Friday.
The national average price for a gallon of regular unleaded gas rose to a record high of $4.077, up from the previous day's record of $4.060, AAA reported.
The National Association of Home Builders (NAHB)/Wells Fargo said the housing market index fell 1 point to a seasonally adjusted reading of 18, down from May's reading of 19. A reading below 50 indicates poor home sales conditions.
The New York Empire State index, a regional manufacturing reading, fell to -8.7 from a prior reading of -3.2. Economists forecast an improvement to -2. Any reading that is positive implies expansion in the sector, while a negative reading implies further weakness.
Tuesday brings a slew of economic reports, including the May Producer Price Index (PPI), a measure of wholesale inflation, due out before the start of trade. Other economic reports due Tuesday morning include May housing starts and building permits and readings on factory usage.
Additionally, earnings are due from Goldman Sachs.
European shares ended lower, but off the day's lows. Weakness in food and beverage stocks weighed and another record for oil futures knocked airlines and auto makers. The pan-European Dow Jones Stoxx 600 index fell 0.26% to 304.9. UK's FTSE 100 lost 0.14% to 5,794.60, while Germany's DAX 30 fell 0.5% to 6,729.88 and the French CAC-40 dropped 0.5% to 4,657.74.
In the emerging markets, the Bovespa in Brazil was up 0.1% at 67,284 while the IPC index in Mexico shed 0.2% at 30,354. The RTS index in Russia gained 0.4% at 2366 and the ISE National-30 index in Turkey rose 0.6% to 46,720.
Bulls may gain further ground
Markets ended with smart gains as bulls were back on the bourses. Key indices kicked off positively, mirroring gains in the International equity markets and buying momentum in the index heavyweights like ICICI Bank, Infosys and Bharti Airtel.
However, as the day progressed, key indices were unable to hold on to their early gains as traders and investors preferred to book some profits at higher levels. As the benchmark Sensex slipped over 200 points from days high and Nifty came off nearly 40 points from days high.
The Auto, Pharma and Capital Goods stocks were under the pressure. However, the Realty, Bankex and IT stocks were among the ones in demand. Even the Mid-Cap and the Small-Cap stocks attracted some buying interest. Both the indices were in up by a percent each.
Among the 30-scrips of Sensex, 23 stocks ended in positive terrain and only 6 stocks ended in red. Finally, the BSE benchmark Sensex gained 26 points to close at 15,395 and the Nifty index was up 55 points to close at 4,572.
Lupin advanced by 3% to Rs725 after the company announced that it secured USFDA approval for Escitalopram Oxalate tablet. The scrip touched an intra-day high of Rs730 and a low of Rs707 and recorded volumes of over 8,00,000 shares on BSE.
Cadila edged higher by half a percent to Rs313. The company announced the first day launch of Venlafaxine Hydrochloride Tablets upon receiving the final approval fi-oni the US FDA. The scrip touched an intra-day high of Rs320 and a low of Rs311 and recorded volumes of over 9,000 shares on BSE.
Jupiter Bioscience gained by over 0.5% to Rs137 after the company announced that it entered into licensing agreement with California based GI Logics Inc for development and sales for the use of Diamox for eradication of H. pylori and for a diagnostic test for infection by and eradication of the bacterium.
The scrip touched an intra-day high of Rs146 and a low of Rs137 and recorded volumes of over 82,000 shares on BSE.
Hindustan Zinc slipped by 0.3% to Rs588. The company announced that it lowered prices of zinc and lead. The price of zinc was cut by Rs2,400, or 2.6%, to Rs90,300 per metric ton and Lead prices were lowered by 3.5% to Rs93,300 per ton. The scrip touched an intra-day high of Rs602 and a low of Rs585 and recorded volumes of over 31,000 shares on BSE.
Hindalco Industries slipped by 2.3% to Rs171. According to reports, the company is considering various options including rights issue to repay a US$3bn bridge loan it took to finance the acquisition of Novelis Inc. The scrip touched an intra-day high of Rs179 and a low of Rs170 and recorded volumes of over 11,00,000 shares on BSE.
Tata Steel gained by a percent to Rs848 after the company said that its wholly owned subsidiary, Rawmet Ferrous Industries Ltd entered into a share subscription agreement and shareholders' agreement with Jasper Industries Pvt Ltd to set up a coal based power plant of 2 X 67.5 MW capacity at Anantpur Village, Cuttack, Orissa.
Pursuant to the shareholders' agreement, Tata Steel and Rawmet together will hold 26% and Jasper Industries will hold 74% of the stake of the equity in Bhubaneshwar Power Pvt Ltd (JV Company). The scrip touched an intra-day high of Rs864 and a low of Rs845 and recorded volumes of over 5,00,000 shares on BSE.
JSW Steel rallied by over 5.5% to Rs994 following reports that the company plans to invest Rs800bn to add 20mn tonne capacity. The scrip touched an intra-day high of Rs1019 and a low of Rs965 and recorded volumes of over 2,00,000 shares on BSE.
Wipro advanced by 1.8% to Rs486 after reports stated that the company has pulled out of its joint venture with Motorola. The scrip has touched an intra-day high of Rs490 and a low of Rs460 and has recorded volumes of over 81,000 shares on BSE.
Satyam Computer advanced 1.5% to close at Rs488 after the company announced that it has been awarded Tier 1 Engineering Supplier Status by EADS, an international leader in the aerospace and defense industries. The scrip touched an intra-day high of Rs494 and a low of Rs483 and recorded volumes of over 3,00,000 shares on BSE.
3i Infotech marginally slipped by 0.5% to Rs115. Reports stated that the company completed the acquisition of US based Regulus Group for US$100mn. The scrip touched an intra-day high of Rs121 and a low of Rs115 and recorded volumes of over 76,00,000 shares on NSE.
Corporate News
Japanese drug-maker Daiichi-Sankyo may revise the open offer price for Ranbaxy in the case of a competitive bid. (BS)
Reliance Industries is seeking to borrow US$1bn to fund its expansion projects. (DNA)
Reliance Power will get a US$500-million loan from ADB for the 4,000-MW UMPP coming up at Krishnapatnam in AP. (BS)
IOC, HPCL and BPCL sell bonds to RBI at a premium. (BS)
Maruti may launch a stripped-down version of Maruti 800 to compete with Nano. (BS)
Balmer Lawrie is set to acquire a 50% stake in a travel and tourism company with a national presence. (ET)
TCS plans to participate in e-governance projects in India as well as countries in the Middle East, Latin America, eastern Europe and Africa. (ET)
Unitech has scrapped plans for a US$600mn sale of shares in a real estate investment trust in Singapore. (BS)
ITC Welcom Group through its subsidiary Fortune Park Hotels Ltd is planning to add another 21 hotels in the next three years. (BS)
The Al Rostmani group, one of the largest conglomerates in the UAE, is planning to pick up a majority stake in GHCL for an estimated investment of Rs7bn. (BS)
Srei Equipment Finance Pvt. Ltd., a 50:50 JV between Srei Infrastructure Finance Ltd and BNP Paribas, will raise ~Rs80-90bn during FY09. (DNA)
Aksh Optifibre, in collaboration with MTNL has cut its subscription rates to Rs199 per month. (ET)
Daiichi-Sankyo has been granted two product patents by the Kolkata Patent Office. (BS)
Jet Airways plans to put its international expansion on hold until the end of next year due to soaring oil prices. (ET)
Jet Airways has announced a two-year tie-up with Shell-MRPL Aviation Fuels and Services Pvt. Ltd for its fuel supply at the new airports in Banaglore and Hyderabad. (Mint)
Sterlite Industries may consider legal action if the bankruptcy court favors Grupo Mexico's counter-offer of US$4.1bn for Asarco, the US copper mining giant. (BS)
Godavari Fertilisers and Chemicals Limited would solely cater to the agri input requirements of the state farmers, starting this kharif season. (BS)
Gujarat State Petroleum Corporation (GSPC) has applied to the Directorate General of Hydrocarbons (DGH) for declaration of commerciality of its discoveries in the KG basin block. (BL)
SRF plans to put its share buyback plan on hold. (Mint)
NMDC has resumed operations at three iron ore mines in Chattisgarh. (Mint)
Transport Corporation of India plans to raise capital for its expansion plan by diluting promoter holding by ~10%, which is expected to generate ~Rs680mn. (ET)
Goldman Sachs has acquired a minority stake in Shapoorji Pallonji’s engineering arm Sterling & Wilson for over Rs2bn. (ET)
Gemini Communications has acquired a majority stake in Chennai based Veeras Infotek for Rs70mn. (ET)
Nokia’s market share in India has increased to 62.5% in 2007-08 from 53.6% last year. (ET)
Cobra Beer India, the Indian subsidiary of the US$400mn UK-based Cobra Beer will be launching diet beer in India. (ET)
Malaysian national carmaker Proton plans to enter the Indian passenger vehicle market (ET)
Economic News
State governments to roll back jet fuel tax cuts, as they believe that benefits have not been passed on to the consumers. (BS)
The Government has allowed private mobile operators to enter into mutual agreements for intra circle roaming with each other. (BS)
Mumbai Metro rail project will generate 651,938 carbon credits between 2011 and 2020. (BL)
States have asked the Centre to pay them Rs40bn for the revenue loss due to duty cuts on petrol, diesel and cooking gas during the remaining part of 2008-09. (FE)
Soaring steel and cement prices have virtually put the brakes on the Pradhan Mantri Gram Sadak Yojana, the rural road component of the UPA’s flagship ‘Bharat Nirman’ programme. (FE)
The department of fertiliser (DoF) has firmed up a time-bound completion of revival of seven sick units of Fertiliser Corporation of India (FCI) and Hindustan Fertiliser Corporation (HFC). (FE)
According to ministry officials, the national-wide rollout of CAS will happen only after the general elections in 2009. (ET)
According to TRAI, Mobile Virtual Network Operators (MVNOs) that intend to enter the domestic mobile space will not be allowed to own spectrum. (BS)
The empowered group of state finance ministers deferred its decision on rationalization of sales tax on aviation turbine fuel to June 23, 2008. (DNA)
According to CMIE, GDP is expected to grow at an impressive 9.5% in 2008-09. (ET)
Small and medium enterprises will get Rs550mn IPR facilitation package for implementation over the next four years. (ET)
Gems and jewellery exports rose by over 36% yoy to US$1.8bn in May 2008. (ET)
Today's Pick - GSFC
We recommend a buy in Gujarat State Fertilizers & Chemicals from a short-term perspective. It is clearly visible from the charts of Gujarat State Fertilizers & Chemicals that it had been on an intermediate-term downtrend from its January 2008 high of Rs 370 until it reached its June low of Rs 152.
However, after finding support at around Rs 150 (a significant long-term support level) in the recent times, the stock began to move up. During this upmove, the stock conclusively penetrated the intermediate-term down trendline and its 21-day moving average.
There is also an increase in trading volumes over the past two trading sessions.
We believe that the stock will continue to move higher in the short-term. The daily Relative Strength index is rising towards the bullish zone. We notice a crossover in the daily moving average convergence and divergence and it is rising in line with the stock price, indicating bullishness. Our short-term forecast for the stock is bullish. We expect the stock to move upwards until it hits our price target of Rs 200 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 167.
Via Businessline
India, China top outsourcing hubs
China and India are expected to continue as the top sourcing hubs in retail and consumer sector globally in the coming years, even as concerns over rising cost, quality and environmental issues may impact their advantage, a latest PWC report says.
According to report `global sourcing: shifting strategies` released by PricewaterhouseCoopers (PWC), cost, quality and the environment would play an increasingly important role as companies seek to achieve new heights of performance and competitive advantage from the global sourcing programmes.
"Our feeling is that China will continue to be the leader in terms of sourcing activities for many years to come, however, concern over rising costs, carbon footprint and other issues may cause companies to step up purchases in other countries over time," the PWC report stated.
China is the number one destination for global sourcing activities with 83 percent of companies interviewed for the survey naming it as the top sourcing nation, while India follows at the second place with 58 percent.
"Global sourcing is experiencing robust growth with increased globalisation. While cost is still the key driver of global sourcing activities, mature companies are shifting focus to gain greater efficiency in competitive market, with focus on better quality products and collaborative supplier relationships," PWC India retail and consumer leader N V Sivakumar said.
For success, companies need to adapt their organisation structure and processes to manage the supply chain risks, minimise impact on environment, as well as measure and maximise cost savings, Sivakumar added.
Amongst the North American companies surveyed, all firms mentioned China as a preferred source, while 40 percent firms endorsed India, the report stated.
For Europe-based companies, China was also first-named by 88 percent followed by India at 72 percent. Besides, in Asia Pacific region too China came out on top with 71 percent followed by India at second place (50 percent).
Highlighting that the growth of global sourcing is likely to dynamic on the coming years, the report stated that 40 percent of the respondents predict that the activities are likely to grow at 10 percent of more in the next five years.
However, looking to the future the survey revealed that respondents saw some potential barriers in achieving incremental cost savings.
These include fuel costs (75 percent), currency risks (68 percent), environmental costs (68 percent) and transportation mode congestion (66 percent), the report stated.
Besides, environment also emerged as a key consideration when the survey group looked toward the future of their global sourcing programmes.
It is clear that companies do not fully comprehend the potential impact that carbon footprint and environmental costs might have on the future of global sourcing, the report added.
Precious metals try to make up for the losses
Gold and silver prices end considerably higher as dollar weakens for first time in four sessions
Precious metals ended considerably higher on Monday, 16 June, 2008. The weakness in dollar was the main reason behind this. Also, crude prices retreated after reaching an all time high of $140/barrel. Dollar fell today against the euro after three successive sessions of rise.
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.
Comex Gold for August delivery rose $13.2 (1.5%) to close at $886.3 ounce on the New York Mercantile Exchange. Earlier, in the day, gold futures touched a high of $897. Last week, gold prices ended lower by $25.9 (2.9%). Last month, in May, it ended with a gain of higher by $22.5 (2.5%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then.
This year, gold prices have gained 6% till date against a 4.8% drop for the dollar against the euro. Before May, 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%.
On Monday, Comex silver futures for July delivery rose 67 cents (4%) to $17.23 an ounce. Silver has gained 14.6% in 2008 till date. Last week, it finished 87 cents (5%) lower.
Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had 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.
At the currency markets on Monday, the U.S. dollar fell against most of its major rivals after a meeting of the Group of Eight finance ministers in Japan focused more on inflation than on currencies, deflating expectations of a strong statement of support for the U.S. currency.
Also weighing on the greenback was a report showing that manufacturing in the New York region contracted in June. The Empire State survey index fell to negative 8.7 this month from negative 3.2 in May, indicating the industry is contracting. The dollar index , which tracks the performance of the greenback against a basket of other major currencies, was off 0.6% at 73.62.
Since last September, Fed has axed interest rates seven times and brought it down to 2%. On the other hand, the ECB has kept rates unchanged at 4% since June, 2007.
In the crude market, crude oil fell from a record on signs that Saudi Arabia will increase production to stabilize prices. Crude oil for July delivery fell 25 cents to settle at $134.61 a barrel after reaching an intra day high of $139.89.
Gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for August delivery closed higher by Rs 169 (1.4%) at Rs 12,284 per 10 grams. Prices rose to a high of Rs 12,436 per 10 grams and fell to a low of Rs 12,055 per 10 grams during the day’s trading.
At the MCX, silver prices for July delivery closed Rs 772 (3.3%) higher at Rs 24,211/Kg. Prices opened at Rs 23,445/kg and rose to a high of Rs 24,630/Kg during the day’s trading.
Crude ends marginally lower after nearing $140
Chances of increased production at Saudi Arabia in coming month put pressure on price
Crude prices retreated back after nearing $140/barrel today, Monday, 16 June, 2008. Couple of factors continued to weigh on crude prices. Chance of an increase in output at Saudi Arabia was the main reason. Temporary shutdown of an oil platform in the North Sea and weakness in the U.S. dollar had earlier pushed up crude prices.
Crude-oil futures for light sweet crude for July delivery today closed at $134.61/barrel (lower by $0.25/barrel or 0.02%) on the New York Mercantile Exchange. Earlier it rose to $139.89/barrel.
Last week, crude prices closed lower by 2.7%. For the year, crude is up by 38.2% till date. Prices are 98% higher on a yearly basis.
Saudi Arabia has called a meeting for 22 June in Jeddah to help stabilize prices. It was also reported today that the kingdom will produce 9.7 million barrels of oil a day next month, an increase of 200,000 barrels from June's level.
Also, as per reports, Norwegian oil company StatoilHydro said during the weekend that it will shut down oil production at a North Sea platform after a fire broke out.
At the currency markets on Monday, the U.S. dollar fell against most of its major rivals after a meeting of the Group of Eight finance ministers in Japan focused more on inflation than on currencies, deflating expectations of a strong statement of support for the U.S. currency.
Also weighing on the greenback was a report showing that manufacturing in the New York region contracted in June. The Empire State survey index fell to negative 8.7 this month from negative 3.2 in May, indicating the industry is contracting. The dollar index , which tracks the performance of the greenback against a basket of other major currencies, was off 0.6% at 73.62.
Previous to today, oil prices had shot higher by almost $11 a barrel on Friday, 06 June, 2008 scoring their biggest one-day gain in dollar terms as talk about a potential Israeli attack on Iran combined with a slide in the U.S. dollar. Prices had touched an all time high of $139/barrel but closed at $138.5. That was an all-time closing high.
Brent crude oil for June settlement today fell $0.40 (0.3%) to $134.71 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.
Natural gas advanced to a 29-month high after the dollar declined the most against the euro in more than a week. Natural gas for July delivery advanced 30.8 cents (2.4%) to settle at $12.933 per million British thermal units.
Against this backdrop, July reformulated gasoline closed down 2.21 cents at $3.4379 a gallon after climbing as high as $3.53 earlier, while July heating oil fell 1.26 cents to end at $3.8274 a gallon.
Organization of the Petroleum Exporting Countries (OPEC) reported last week that demand for crude from the OPEC Countries in 2007 averaged an estimated 32 million barrels per day, up 260,000 barrels per day from the previous year. But in 2008, demand for OPEC crude is expected to average 31.8 million barrels per day, down 130,000 barrels from 2007.
The cartel also aid it expects global oil demand to grow to 86.88 million barrels per day for 2008, up 1.28% from 2007's demand of 85.78 million, but down from the estimate of 86.95 million it forecasted in the previous month.
At the MCX, crude oil for July delivery closed at Rs 5,762/barrel, lower by Rs 10 (0.2%) against previous day’s close. Natural gas for June delivery closed at Rs 552.6/mmbtu, higher by Rs 10.7/mmbtu (2%).
Nifty june futures at a discount
Turnover in F&O segment declines
Nifty June 2008 futures were at 4570, at a discount of 2.50 points as compared to spot closing of 4572.50. NSE's futures & options (F&O) segment turnover was Rs 40,166.83 crore, which was lower than Rs 41,003.40 crore on Friday, 13 June 2008.
Reliance Industries (RIL) June 2008 futures were at discount at 2278.25 compared to the spot closing of 2282.35.
Reliance Petroleum June 2008 futures were near spot price at 180.90 compared to the spot closing of 180.65.
Ranbaxy Laboratories June 2008 futures were at premium at 569.60 compared to the spot closing of 567.80.
In the cash market, the S&P CNX Nifty gained 55.40 points or 1.23% at 4572.50.
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