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Wednesday, June 18, 2008
India's outsourcing rev growth softening: TCS
Tata Consultancy Services Ltd, India's top software services exporter, expects a slight slowdown in revenue growth in India's outsourcing industry this year but sees opportunities in sectors such as government and utilities.
India's outsourcing industry is expected to show 20-22 percent revenue growth in the current fiscal year ending in March, 2009, compared with growth of about 25 percent in the previous year, TCS CEO S Ramadorai told reporters on the sidelines of the OECD Ministerial Meeting on the Future of the Internet Economy.
Tata Consultancy, which got half its revenue from the United States in the March quarter, has said it would boost growth in new markets such as the Asia-Pacific region.
NSE Bulk Deals to Watch - June 18 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
18-Jun-08,ASIANELEC,Asian Electronics Ltd,U.S. INSTURMENTS PVT LTD,BUY,215000,127.07,-
18-Jun-08,GSSAMERICA,GSS America Infotech Limi,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,116545,327.85,-
18-Jun-08,GWALCHEM,Gwalior Chemical Industri,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,BUY,225000,97.21,-
18-Jun-08,HCLTECH,HCL Technologies Ltd.,HSBC GLOBAL INVESTMENT FUNDS MAURITIUS LTD,BUY,4545884,279.5,-
18-Jun-08,KOHINOOR,Kohinoor Foods Limited,TEMPTATION FOODS LIMITED,BUY,1000000,86.05,-
18-Jun-08,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,BUY,2180151,48.01,-
18-Jun-08,PTC,PTC India Limited,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,1080124,87.71,-
18-Jun-08,PUNJABCHEM,Punj Chem & Crop Prot Ltd,TIRUALA POWER LTD,BUY,1124,245,-
18-Jun-08,PUNJABCHEM,Punj Chem & Crop Prot Ltd,TIRUMALA POWER LIMITED,BUY,40610,247.74,-
18-Jun-08,SASKEN,Sasken Commu Techno Ltd,GEE BEE SECURITIES PRIVATE LIMITED,BUY,145194,167.71,-
18-Jun-08,SASKEN,Sasken Commu Techno Ltd,P R B SECURITIES PRIVATE LTD,BUY,170202,170.33,-
18-Jun-08,SASKEN,Sasken Commu Techno Ltd,PARWATI CAPITAL MARKET PRIVATE LIMITED,BUY,167405,168.2,-
18-Jun-08,SASKEN,Sasken Commu Techno Ltd,SUNDARAM MUTUAL FUND A/C. SUNDARAM SELECT MIDCAP,BUY,145000,168.44,-
18-Jun-08,SASKEN,Sasken Commu Techno Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,285438,166.48,-
18-Jun-08,ASIANELEC,Asian Electronics Ltd,USHA SURESH SHAH,SELL,215000,127.06,-
18-Jun-08,GSSAMERICA,GSS America Infotech Limi,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,116545,328.13,-
18-Jun-08,GTCIND,GTC Industries Ltd,L&T FINANCE LIMITED,SELL,173000,151.61,-
18-Jun-08,HCLTECH,HCL Technologies Ltd.,FID FDS MAURITIUS LTD,SELL,6207296,279.5,-
18-Jun-08,KOHINOOR,Kohinoor Foods Limited,DEUTSCHE BANK AG LONDON,SELL,1000000,86.02,-
18-Jun-08,LLOYDELENG,Lloyd Electric & Engg Ltd,MERRIL LYNCH CAPIATL MARKETS ESPANA S A,SELL,179100,99.17,-
18-Jun-08,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,SELL,2180151,48.04,-
18-Jun-08,NATCOPHARM,Natco Pharma Limited,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,159000,75.33,-
18-Jun-08,PTC,PTC India Limited,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,2000000,87.5,-
18-Jun-08,PUNJABCHEM,Punj Chem & Crop Prot Ltd,TIRUALA POWER LTD,SELL,48503,247.67,-
18-Jun-08,SASKEN,Sasken Commu Techno Ltd,GEE BEE SECURITIES PRIVATE LIMITED,SELL,145194,168.83,-
18-Jun-08,SASKEN,Sasken Commu Techno Ltd,P R B SECURITIES PRIVATE LTD,SELL,170202,170.45,-
18-Jun-08,SASKEN,Sasken Commu Techno Ltd,PARWATI CAPITAL MARKET PRIVATE LIMITED,SELL,167405,168.01,-
18-Jun-08,SASKEN,Sasken Commu Techno Ltd,RAMESH RAJ .,SELL,170000,158.63,-
18-Jun-08,SASKEN,Sasken Commu Techno Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,283878,166.29,-
BSE Bulk Deals to Watch - June 18 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
18/6/2008 532981 ANU LABS SUMMIT COMMUNICATIONS PVT LTD B 100000 449.00
18/6/2008 532981 ANU LABS YES INVESTMENTS B 71000 431.25
18/6/2008 532981 ANU LABS PRABHUDAS LILLADHER PVT. LTD. B 267457 430.49
18/6/2008 532981 ANU LABS N C JAIN B 61941 445.78
18/6/2008 532981 ANU LABS KAUSHIK SHAH SHARES SEC PL B 140487 443.86
18/6/2008 532981 ANU LABS BHANDARI RAKHI KALPESH B 195059 427.50
18/6/2008 532981 ANU LABS RUPESH K DALAL B 67767 423.33
18/6/2008 532981 ANU LABS YES INVESTMENTS S 71000 433.88
18/6/2008 532981 ANU LABS PRABHUDAS LILLADHER PVT. LTD. S 267457 430.64
18/6/2008 532981 ANU LABS N C JAIN S 61941 445.43
18/6/2008 532981 ANU LABS KAUSHIK SHAH SHARES SEC PL S 141987 443.78
18/6/2008 532981 ANU LABS BHANDARI RAKHI KALPESH S 195059 427.10
18/6/2008 532981 ANU LABS RUPESH K DALAL S 67767 423.69
18/6/2008 500058 BIHAR SPON I MODI RUBBER LTD S 649578 17.78
18/6/2008 590059 BIHAR TUBES CHANDRIKA TRADERS LTD S 52765 176.00
18/6/2008 590081 BRAHMANAND PRAGYA MERCANTILE PVT LTD B 150000 75.65
18/6/2008 590081 BRAHMANAND ANUSHREE TRADE LINK PVT LTD S 176125 75.77
18/6/2008 532271 CYBERMAT INF S V ENTERPRISES B 1895757 5.40
18/6/2008 532271 CYBERMAT INF S V ENTERPRISES S 1310002 5.49
18/6/2008 531863 GEEKAY FINAN LOTUS GLOBAL INVESTMENTS LIMITED B 80000 62.90
18/6/2008 532857 GLORY POLY M/S MAVI IMPEX LTD S 100000 64.04
18/6/2008 504701 GONTERM PEIP SANJOG REALTY PVT LTD B 85900 51.98
18/6/2008 504701 GONTERM PEIP SWAGATAM MARKETING PVT LTD S 90000 51.97
18/6/2008 500151 GTC INDUSTRI L T FINANCE LIMITED S 97000 152.19
18/6/2008 532764 GWALIOR CHEM GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD B 215000 97.46
18/6/2008 506131 INDIA CO VEN VINAYAK BHATTACHARJEE B 43701 530.52
18/6/2008 505840 JAIPAN INDUS GLOBAL FILM AND BORD CASTING L B 33005 37.11
18/6/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD B 66302 27.04
18/6/2008 517518 LLOYD ELE EN MERILL LYNCH CAPITAL MARKET ESPANA S 157500 99.18
18/6/2008 501209 MAST MEDI SY BAKLIWAL INVESTMENT B 25000 45.00
18/6/2008 524816 NATCO PHARMA GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD S 197751 75.38
18/6/2008 531996 ODYSSEY CORP ANUJ MANOJ TURAKHIA S 27500 27.91
18/6/2008 532524 PTC INDIA MORGAN STANLEY MAURITIUS COMPANY LIMITED S 2000000 87.50
18/6/2008 532884 REFEX REFRIG KAMLESH H DAFTARY B 114991 220.80
18/6/2008 532884 REFEX REFRIG HIMAT PARSHOTTAMBHAI JATANIA B 318000 220.10
18/6/2008 532884 REFEX REFRIG KAMLESH H DAFTARY S 114991 220.90
18/6/2008 526640 ROYALE M H I NISHA SUMAN JAIN B 115000 25.52
18/6/2008 532663 SASKEN COMM MATRIX EQUITRADE PVT LTD B 168031 169.13
18/6/2008 532663 SASKEN COMM MATRIX EQUITRADE PVT LTD S 168031 169.41
18/6/2008 526049 SHRILAKSHMI KARAN MAHESHKUMAR HADVANI B 168753 117.06
18/6/2008 531499 SYBLY INDUSR SANOBER KHAN B 50000 6.80
Post Session Commentary - June 18 2008
Indian market ended with loses after giving up yesterday’s gains due to heavy selling pressure over the ground. Weak opening of the European Markets also added to the negative sentiment. The domestic market opened in green but showed a lot of volatility since the initial bell. It was moving between positive and negative territory till mid session. But the market lost the grip after the mid session to close on the back foot despite easing oil prices.
The deferment of the meeting between the UPA and the Left parties over the Indo US nuclear deal, which was scheduled today also adds to the negative sentiments in the market. The Nifty closed below 4600 and the Sensex below 15500 levels. The crude oil price extended its decline today to stand below $134 a barrel. From the sectoral front, only FMCG and Auto stocks witnessed buying favour, while all other stocks closed in red. Metal, Capital Goods, Banking and Reality stocks were major losers as most of the selling was seen on theses baskets. The market breadth was negative as 1,254 stocks closed in green while 1,402 stocks closed in red.
The BSE Sensex closed lower by 274.59 points at 15,422.31 and NSE Nifty ended down by 70.60 points at 4,582.4. The BSE Mid Caps and Small Cap closed negative with decrease of 40.39 points and 6.01 points at 6,359.79 and 7,775.29 respectively. The BSE Sensex touched intraday high 15,789.62 and intraday low of 15,390.22.
Losers from the BSE are ICICI Bank Ltd (4.25%), HDFC Bank Ltd (3.40%), Tata Steel (3.18%), L&T Ltd (3.12%), JP Assoc (2.93%), Reliance Infra (2.83%), Reliance Infra (4.13%), DLF Ltd (2.68%), Bharti Airtel (2.67%) and BHEL (2.64%).
The Metal index closed lower by 265.38 points at 15,251.48. Losers are Gujarat Nre C (3.89%), Hindustan Zinc (3.66%), Tata Steel (3.18%), Steel Auth (3.17%), Ispat Industries (2.68%), and Jindal Steel (2.45%).
The Banking index closed down by 260.73 points at 7,306.44. Losers are Axis Bank (5.16%), ICICI Bank Ltd (4.25%), Kotak Bank (4.23%), Bank of Baroda (3.90%), Bank of Barod (5.87%), HDFC Bank Ltd (3.40%) and Union Bank (3.08%).
The Capital Goods index dropped by 243.94 points to close at 12,119.33. Major losers are Praj Indus (3.91%), Areva (3.49%), Kirloskar Br (3.29%), L&T Ltd (3.12%), Kir Oil Eng (2.66%) and BHEL (2.64%).
The Reality Index closed lower by 213.41 points at 5,885.75. Losers are Anant Raj Ind (7.46%) along with Indiabulls Real (6.07%), Purvankara (4.44%), Sobha Dev (3.36%), Unitech Ltd (3.31%) and Pheonix Mill (3.04%).
The Oil & Gas index closed down by 175.44 points at 10,066.35. As Essar Oil Ltd (3.03%), Reliance Pet (2.66%), Aban Offshore (2.65%), Reliance Natural Resources (1.97%), Reliance (1.96%) and Cairn India (0.95%) closed in negative territory.
The FMCG index increased by 8.52 points to close at 42,310.11 as Rei Agro Ltd (3.10%), United Spr (2.48%), United Brew (1.72%), Marico Ltd (1.47%) and ITC Ltd (0.84%) closed in positive territory.
The Auto index advanced by 4.77 points to close at 4,179.54. Major gainers are Hero Honda Motors (2.43%), Bosch Ltd (1.90%), Maruti Suzuki (1.24%), Ashok Leyland (0.76%) and TVS Motors (0.28%)
Market slips after two-session rally
The northward journey of the market finally got derailed on the third day of the trading week, after a sharp bout of selling in afternoon ensured that the market remains in negative territory till the close. The last two trading sessions had seen the market register gains of over 500 points on the back of firm international markets. The overnight fall in the US markets and mixed Asian indices saw brisk activity in early trades, with the Sensex witnessing a swing of over 400 points. After resuming 47 points higher at 15,744, the index eased on profit taking and remained range-bound with a negative bias in the first half of the trading session. A wave of selling in heavyweights and select sectoral stocks triggered a major fall, with the index slipping nearly below the 15,400 mark and touching the day's low of 15,390. The Sensex however managed to erase some losses on selective buying and closed the session with losses of 275 points at 15,422, while Nifty declined by 71 points at 4,582.
The broader market was in red. Of the 2,730 stocks traded on the BSE, 1,405 stocks declined, 1,254 stocks advanced and 71 stocks ended unchanged. Among the sectoral indices only two ended in green. BSE Realty was the biggest laggard and moved down 3.50% at 5,885.75 followed by BSE Bankex index (down 3.45% at 7,306.44) and BSE IT index (down 2.39% at 4333.94). However, BSE FMCG index gained 0.37% at 2,310.11 followed by BSE Auto index (up 0.11% at 4,179.54).
Among the laggards, ICICI Bank was down 4.25% at Rs771, HDFC Bank declined by 3.40% at Rs1,161.20, Tata Steel shed 3.18% at Rs818, Larsen & Toubro dropped 3.12% at Rs2,725, Jaiprakash Associates lost 2.93% at Rs180.50 and Reliance Infrastructure fell 2.83% at Rs1,065.20. However, select heavyweights attracted decent buying support. Ambuja Cement surged 4.80% at Rs90.65, Ranbaxy Laboratories rose 2.88% at Rs598.20, Grasim Industries jumped 2.38% at Rs2,177.25, Maruti Suzuki India added 1.24% at Rs765 and Hindalco gained 0.96% at Rs174.30..
Select realty stocks witnessed considerable selling pressure. Anant Raj Industries dropped 7.46% at Rs166.90, indiabulls Real Estate lost 6.07% at Rs397.90, Puravankara Projects declined by 4.44% at Rs200.35, Sobha Developers slipped by 3.36% at Rs395.45, Unitech lost 3.31% at Rs200.25 and Phoenix Mills was down 3.04% at Rs255.30..
Over 1.49 crore Anu’s Laboratories shares changed hands on the BSE followed by Ispat Industries (1.39 crore shares), Chambal Fertilisers (1.30 crore shares), RNRL (1.27 crore shares), IFCI (1.14 crore shares) and Nagarjuna Fertilisers (1.05 crore shares).
Political worries pull market down
Bears struck back with a vengeance on the bourses today after a sharp rally in the past two days. Bears used the ploy of weak European markets and deferral of a crucial UPA-Left coordination committee meeting on Indo-US nuclear deal scheduled today, to bring share prices down. The decline followed a range bound movement on the bourses for a better part of the day till early afternoon trade. News of deferral of the UPA-Left meet on nuclear deal hit the market in afternoon trade.
Banking and IT stocks bore the major brunt of selling. FMCG stocks rose on defensive buying.
Media reports had suggested that the government would try to persuade the communists in today's meeting to at least allow it to conclude negotiations with the International Atomic Energy Agency (IAEA), a crucial step in putting the deal into effect. The nuclear deal, if finalised, will meet some of India's energy needs.
The 30-share BSE Sensex lost 274.59 points or 1.75% at 15,422.31. The index shed 306.68 points at the day’s low of 15,390.22 hit at the fag end of the trading session. At the day’s high of 15,789.62, Sensex gained 92.72 points in early trade.
The broader based S&P CNX Nifty was down 70.6 points or 1.52% at 4582.40. Nifty June 2008 futures were at 4561.40, a discount of 21 points compared with the spot closing.
As per provisional data, foreign funds today sold shares worth a net Rs 435 crore. Domestic funds bought shares worth a net Rs 193.64 crore.
Reports of good monsoon in the first half this month, higher advance tax paid by key Indian corporates, and cooling off of oil prices from record high had boosted the battered bourses in the past two day. Sensex had risen 507.28 points or 3.33% to 15696.90 on Tuesday, 17 June 2008 from its close of 15189.62 on 13 June 2008.
The barometer index is down 5784.46 points or 27.27% from a record high of 21206.77 it hit on 10 January 2008. Slowdown in corporate earnings caused by moderation in economic growth and increase in risk aversion globally due to credit crisis in the United States, has triggered a massive fall on the Indian bourses this year.
Coming back to today's trade, the market breadth, which was strong in early trade, turned weak later as mid-and small-cap stocks lost ground later in the day. On BSE with 1254 shares advanced as compared to 1402 that declined. 75 remained unchanged. The breadth.
The BSE Mid-Cap index down 0.63% to 6,359.79 and BSE Small-Cap index was down 0.08% to 7,775.29.
BSE clocked a turnover of Rs 6160 crore as against Rs 5,337.45 crore on Tuesday, 17 June 2008. NSE's futures & options (F&O) segment turnover was Rs 47440.71 crore, which was higher than Rs 42624.38 crore on Tuesday, 17 June 2008.
India’s biggest drugmaker by sales Ranbaxy Laboratories advanced 2.88% to Rs 598.20 on reports Japanese drug-maker Daiichi-Sankyo may revise the open offer price for minority shareholders if US drug major Pfizer launches a counter offer. The stock rose on heavy volume of 40.8 lakh shares on BSE.
In a major development announced after trading hours today, 18 June 2008, Ranbaxy Laboratories said it has reached a comprehensive settlement over disputes with Pfizer, clearing the way to launch generic version of the US firm's cholesterol drug Lipitor. The settlement covers the United States, Europe, Canada and Australia.
Banking stocks witnessed massive selling pressure after rise in past two sessions. India's largest private sector bank by assets ICICI Bank fell 4.25% at Rs 785.35. ICICI Bank has a third highest weightage of 8.18% in BSE Sensex.
Axis Bank (down 5.16% at Rs 753.25), HDFC Bank (down 4.23% at Rs 650.25), and State Bank of India (down 2.61% at Rs 1,350.90), slipped. The BSE Bankex underperformed the Sensex, falling 3.45% to 7,306.44.
The BSE IT index underperformed the Sensex, sliding 2.39% to 4,333.94. HCL Technologies (down 4.41% at Rs 279.40), Satyam Computer (down 2.44% at Rs 472.50), TCS (down 2.27% at Rs 900.50), Wipro (down 1.94% at Rs 484.85), declined.
India’s second largest software exporter by sales Infosys Technologies fell 2.49% at Rs 1,865.70. Infosys has a second highest weightage of 8.80% in BSE Sensex.
Cement stocks were in demand. Ambuja Cements (up 4.80% at Rs 90.65), ACC (up 0.88% at Rs 643.20), and Grasim Industries (up 2.38% at Rs 2229.10), rose. Some cement makers have reportedly paid higher advance taxes in the June 2008 quarter, hinting at the possibility of brisk business in the current fiscal.
Realty stocks tumbled. The BSE Realty index underperformed the Sensex, falling 3.50% to 5,885.78. Indiabulls Real Estate (down 6.07% at Rs 397.90), Sobha Developers (down 3.36% at Rs 395.45), Unitech (down 3.31% at Rs 200.25), and DLF (down 2.68% at Rs 492.35), slumped.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.96% at Rs 2283.50. RIL has a highest weightage of 15.76% in BSE Sensex.
India’s second largest cellular services provider Reliance Communication rose 0.42% to Rs 527.95. As per reports, Anil Ambani is considering buying more than 40% in South Africa-based MTN. The stock had lost 2.42% to Rs 530.20 on Tuesday, 17 June 2008 from Rs 543.35 on Friday, 13 June 2008, after RIL on Friday, 13 June 2008, claimed first right of refusal to buy a controlling stake in Reliance Communication (RCom).
RCom, controlled by Anil Ambani, is in exclusive talks with South Africa's MTN for a tie-up that could create a top-10 global telecoms firm.
Drug maker Plethico Pharmaceuticals rose 2.75% to Rs 384.80 on reports the company plans to acquire a US-based nutraceutical company for about $80 million to $100 million.
Auto lubricants maker Tide Water Oil was locked at upper limit of 5% at Rs 4040.40 on reports Reliance Industries, French oil giant Total, US oil giant Chevron, Hinduja group and Keventer group have evinced interest in bidding for Andrew Yule's stake in the firm.
IT soulutions provider Cambridge Solutions was locked at upper limit of 20% at Rs 57.80 on reporting net profit of Rs 17.18 crore in Q4 March 2008 as compared to net loss of Rs 1.65 crore in Q3 December 2007.
Anu's Laboratories clocked the highest turnover of Rs 643.25 crore on BSE. Reliance Capital (Rs 286.03 crore), Ranbaxy Laboratories (Rs 245.66 crore), Reliance Industries (Rs 211.08 crore), and Reliance Petroleum (Rs 163.08 crore), were the other turnover toppers on BSE in that order.
Anu's Laboratories reported a highest volume of 1.49 crore shares on BSE. Ispat Industries (1.39 crore shares), Chambal Fertilizers and Chemical (1.30 crore shares), Reliance Natural Resources (1.27 crore shares) and IFCI (1.14 crore shares), were the other volume toppers on BSE in that order.
European markets, which opened after Indian market, were trading lower. Key indices in UK, France and Germany were down by 0.25% to 1.17%.
Asian markets, which opened before Indian market, were trading higher. Key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan were up by 0.19% to 5.24%.
US market closed lower yesterday, 17 June 2008, following a warning from Goldman Sachs that banks may need to raise another $ 65 billion to tide over the credit crisis. The news rippled through the market, offsetting any positive impact from Goldman's earnings. The Dow Jones industrial average plunged 108.78 pints, or 0.89%, to 12,160.30. The S&P 500 index declined 9.21 points, or 0.68%, to 1,350.93, while the Nasdaq composite index lost 17.05 points, or 0.69%, to 2,457.
US crude oil futures fell further on Wednesday, 18 June 2008, after settling lower for a third day in a row on Tuesday, 17 June 2008, on expectations Saudi Arabia will soon boost output. Front-month US crude for July delivery was down 65 cents, or 0.49%, at $133.36 a barrel on the Globex electronic trading platform.
Grey Market - Avon Weighing zooms
Niraj Cement 190 -8 to 10
Bafna Pharmaceutical 40 7 to 10
Avon Weighing 10 9 to 11
Sejal Architectural Glass Ltd. 105 to 115 23 to 25
First Winners Ind. Ltd. 115 to 125 6 to 8
Archid Ply Ind. 70 to 80 7 to 10
Lotus Eye Care Hospital 36 to 38 3 to 5
Somi Conveyor Belting 35.00 5 to 7
Market may move sideways
The market may exhibit optimism after registering the sharp gains in yesterday's trades. The overnight loss in US markets and the mixed Asian indices in morning trades may put pressure on the domestic indices. The current net outflows from the market and the rise in international crude oil prices remain causes for concern. The market may witness sideways movement during intra-day trades. The Nifty could test higher levels between 4700 and 4747 and may dip around 4615 while the Sensex has a likely support at 15540 and may face resistance at 15850.
US indices lost on Tuesday: The Dow Jones declined by 109 points at 12160 while the Nasdaq was down 17 points at 2458.
Barring a few, the majority of the Indian floats ended at lower levels. Rediff was the biggest loser and tumbled nearly 2.38% followed by Dr Reddy's and MTNL which shed over 1-2% each. Infosys, Satyam and Wipro ended with steady losses. However, VSNL bucked the downtrend and soared 4.16% while Tata Motors and ICICI Bank were up nearly 1% each. HDFC Bank and Patni Computers closed in positive territory.
Crude oil prices in the US market were marginally down, with the Nymex Light Crude oil for July 2008 delivery losing 60 cents to close at $134.01 a barrel. However, in the commodity space, the Comex gold for August 2008 series gained 60 cents to settle at $886.90.
Pre Session Commentary - June 18 2008
The Indian Market is expected to open on negative note on the back of weak global cues as the US market closed in red and Asian markets are trading mixed. On Tuesday, the Indian market closed with handsome gains due to heavy buying over the ground. The domestic market showed lots of volatility in opening but it jumped up and sustained the momentum till end backed by easing crude oil price and favoring opening of the European markets that gave a support to the market. Encouraging advance tax numbers also boosted 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 slipped back to $132.84 on Tuesday before ending the day at $134.61. From the sectoral front, all indices closed in green in addition to this banking, capital goods, reality and oil & gas stocks held most of the gains of market. 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. We expect that market may remain cautious during the trading.
US markets closed lower on Tuesday after the government reported a decline in housing starts to their lowest level in more than 17 years and a sharp rise in producer prices in May. The U.S. Commerce Department reported starts of new houses have declined 3.3% on the month in May. Production in factories, mines and utilities declined 0.2% for the same month after dropping 0.7% in April. Bank shares dropped after Goldman Sachs warned on credit crisis. According to Goldman, banks may need to raise another $65 bn in capital to shore up balance sheets weakened by the mortgage crisis , which adds on to negative sentiment.
The Dow Jones Industrial Average (DJIA) closed lower by 108.78 points at 12,160.30 along with NASDAQ down by 17.05 points to close at 2,457.73 and S&P 500 dropped by 9.21 points to close at 1,350.93.
Indian ADRs ended mixed. In technology sector, Patni Computers went up by (0.03%) while Infosys dropped by (0.32%) along with Satyam by (0.12%) and Wipro by (0.04%). In banking sector, ICICI bank and HDFC bank advanced by (1.22%) and (0.71%) respectively. In telecommunication sector, Tata Communication rose (4.16%) however MTNL fell by (1.77%). Sterlite industries inclined (0.86%).
Today the major stock markets in Asia are trading mixed. Japan’s Nikkei is trading higher by 57.40 points at 14,405.77 along with Hang Seng index trading up by 40.34 points at 23,098.33, while Taiwan Weighted trading at 8,194.77 with a fall of 7.02 points.
The FIIs on Tuesday stood as net seller in equity. The gross equity purchased was Rs2,282.80 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,815.70 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs532.80) Crore and net debt was Rs0.00 Crore.
Today, Nifty has support at 4,539 and resistance at 4,728 and BSE Sensex has support at 15,324 and resistance at 15,920.
Morning Call - June 18 2008
Market Grape Wine :
In House :
Nifty at a support of 4615 and 4570 with resistance at 4688 and 4730 levels.
Cash : Sell BHEL below 1524 TGT 1485 with S/L 1545
Cash : BUY Divislab above 1575 TGT 1630 with S/L 1559
F & O : Buy Ansal Infra above 102 TGT 112 with S/L 98
F & O : Buy SCI above 251 TGT 264 with S/L 245
Out House :
Markets at a support of 15463 & 15551 resistance at 15786 & 15991 levels .
Buy : Tisco & Sail
Buy : LUPIN & Glenmark
Buy : Infy & Satyam
Buy : Praj & EIH Bullet
Buy : JPAsso & Unitech
Buy : RPL & RIL
Buy : Bhel & LT
Buy : SKumar & Aban
Dark Horse : EIH , LT , RPL , Tisco , Aban , JPAsso , RIL & Lupin
Trading Calls - June 18 2008
Nifty (4653) Sup 4580 Res 4695
Buy Divis Lab (1596) SL 1578 Target 1640, 1650
Buy Axis (794) SL 788
Target 805, 810
Buy NTPC (168) SL 164
Target 178, 182
Buy Punj (276) SL 271
Target 286, 290
Sell Indian Hot (103) SL 106 Target 97, 94
Spark still missing!
A rocket won't fly unless somebody lights the fuse.
The bulls may have regained some lost ground with bears covering their shorts in the last couple of days. Global markets too have largely held up quite well and oil prices have retreated a bit. Lack of fresh bad news coupled with buying by local institutions have kept the bears on the defensive in the last two days. FIIs turned net buyers in the cash segment yesterday on a provisional basis. However, it remains to be seen whether the current momentum can be sustained, as the bulls still lack conviction.
Mutual funds may be sitting on a huge pile of cash, but the market needs FIIs to turn net buyers in a big way. In short the FIIs have to light the fuse to ignite positive action in the Indian bourses. Plus, the macro and micro environments have to change drastically. The flow of bad news has to slow down. All this will take a while to materialise. As a result, the market will remain largely rangebound and choppy with alternate bouts of buying and selling. It’s a no brainer that this outlook is subject to global market conditions and improvement in local fundamentals.
Today, we expect another cautious to slightly positive start, as the US indices fell overnight but most Asian markets are on a firm ground. The overall trend could slightly favour the bulls purely due to the current momentum though there may be some cooling at higher levels.
Results Today: Aurobindo Pharma, Dish TV, Era Infra, Finolex Industries, Greenply, Hotel Leela, Indraprastha Gas, Kei Industries, Marg, Mascon Global, Power Grid Corp., PNB and Rajesh Exports.
Asian stocks are trading mostly higher this morning. Shares of mining companies and Japanese real-estate developers advanced.
Mitsubishi Estate Co. climbed to a two-week high in Tokyo after rival Mori Building Co. forecast profit to rise by a quarter this year. BHP Billiton gained after metals prices rose. NEC Electronics led chipmakers higher after Goldman Sachs said growth in computer memory sales will boost earnings.
The MSCI Asia Pacific Index rose 0.5% to 144.22 as of 10:27 a.m. in Tokyo. Japan's Nikkei 225 Stock Average added 0.6% to 14,434.34. Benchmark indexes in South Korea and Australia rose, while markets elsewhere declined.
FIIs were net buyers of Rs1.4bn (provisional) in the cash segment on Tuesday while the local institutions poured in Rs4.2bn. In the F&O segment, foreign funds were net buyers of Rs9.51bn.
On Monday, FIIs were net sellers of Rs5.33bn in the cash segment. With this, they have pulled out over $5.5bn from the Indian market this year.
US shares closed down on Tuesday after reports revealed continued weakness in the housing and manufacturing sectors even as wholesale prices increased. Losses were capped after oil prices fell for the third day in a row and Goldman Sachs reported better-than-expected earnings.
The S&P 500 lost 9.21 points, or 0.7 percent, to 1,350.93. The Dow Jones Industrial Average declined 108.78, or 0.9 percent, to 12,160.3. The Nasdaq Composite Index slid 17.05, or 0.7 percent, to 2,457.73.
Market breadth was negative. Two stocks decreased for each that advanced on the New York Stock Exchange.
Financials came under fresh pressure after Goldman Sachs predicted that banks will have to raise $65bn in new capital to cover losses. The top Wall Street firm also said it remains cautious on regional banks.
Zions Bancorporation tumbled the most in eight years after the Salt Lake City-based lender projected more losses from bad loans.
All 23 companies in the S &P 500 Banks Index declined as the group slumped to its lowest level since 1996. Boeing and Deere & Co. declined on the unexpected drop in industrial output, while Lennar Corp. led builders lower on a report showing new-home starts slumped to a 17-year low.
Economic reports showed a surprisingly large rise in the May Producer Price Index (PPI) and a drop in industrial production. Plus, there is still uncertainty whether the Federal Reserve will lift interest rates when it meets at the end of this month.
Wednesday brings earnings reports from Morgan Stanley and FedEx before the opening bell. Later in the morning, the government will release its weekly crude oil supply report. Analysts are expecting oil stockpiles to have fallen by 2mn barrels, according to a survey from Platts, an energy research firm.
U.S. light crude oil for July delivery settled lower for the third day in a row, down 60 cents to $134.01 per barrel on the New York Mercantile Exchange.
COMEX gold for August delivery rose 60 cents to settle at $886.90 an ounce. The national average price for a gallon of regular unleaded gas eased to $4.078 from a record $4.080 the previous day, according to AAA.
In currency trading, the dollar fell versus the euro and the yen. In the bond market, Treasury prices gained, lowering the yield on the benchmark 10-year note to 4.20% from 4.27% late on Monday.
Inflation fears have hurt the bond market in the US. Yields are up sharply over the past few weeks, with the 10-Year Treasury touching 4.27% on Monday, up from 4% just a few weeks ago. The yield on the 2-Year Treasury is now hovering around 3%, up from around 2.75% not long ago
CME Group, parent company of the Chicago Mercantile Exchange, rallied on news that its purchase of NYMEX has received clearance from the Justice Department.
Best Buy reported a lower quarterly profit that topped estimates. The company also reiterated its full-year sales and earnings forecasts. However, the retailer's shares fell 5.3%.
European stocks climbed. Investors scaled back expectations of interest rate hikes, while carmakers rose on lower oil prices and Daimler's announcement of $9bn stock buy back.
The pan-European Dow Jones Stoxx 600 index ended with a rise of 0.5% to 306.36. The UK's FTSE 100 rose 1.2% to 5,861.90, while the German DAX 30 climbed 1% to 6,796.16 and the French CAC-40 advanced 0.6% to 4,686.33. Indexes finished off intra-day highs.
In the emerging markets, the Bovespa in Brazil was up 1.7% at 68,437 while the IPC index in Mexico shed 1.4% at 29,925. The RTS index in Russia jumped 1.4% to 2399 and the ISE National-30 index in Turkey rose 0.8% at 47,100.
Market may take a breather
After a flat start to the trading session bull were back on the bourses taking charge over the bears. Today’s rally could be attributed to buying support in the banking, realty and capital goods stocks. Firm cues from the European markets further aided support to the market sentiment. Even the broader indices like the Mid-Cap and Small-Cap stocks attracted buying interest.
The Nifty closed above 4600 and the Sensex above 15500 levels.
Among the 30-scrips of Sensex, 26 stocks ended in positive terrain and only 4 stocks ended in red. Finally, the BSE benchmark Sensex gained 301 points to close above the 15,500 mark at 15,696 and the Nifty closed above the 4,600 level adding 80 points at 4,653.
BPCL gained by 1.8% to Rs280. The company posted a net profit after tax of Rs584mn for the quarter ended March 31, 2008 as compared to Rs6700mn for the quarter ended March 31, 2007. Total Income has increased from Rs244.005bn for the quarter ended March 31, 2007 to Rs327.129bn for the quarter ended March 31, 2008.
The Group posted a net profit of Rs17.696bn for the year ended March 31, 2008 as compared to Rs21.452bn for the year ended March 31, 2007. Total Income has increased from Rs991.078bn for the year ended March 31, 2007 to Rs1124.104bn for the year ended March 31, 2008. Year ended results are audited. The scrip touched an intra-day high of Rs282 and a low of Rs272 and recorded volumes of over 1,00,000 shares on NSE.
Tech Mahindra surged by over 3% to Rs813 after the company announced that it entered into a stra-tegic global alliance with Microsoft Corp. to address its System Integration (SI) re-quirements for deployments of the award-winning Microsoft Mediaroom Internet Pro-tocol Television (IPTV) and multimedia software platform.
Through the alliance, Tech Mahindra's solution will provide deployment and integration services for new and ex-isting Microsoft Mediaroom broadband service provider customers to deploy IPTV services, which are expected to gain momentum in the coming years. The scrip touched an intra-day high of Rs828 and a low of Rs780 and recorded volumes of over 65,000 shares on NSE.
South Indian Bank advanced by 3% to Rs127 after the board of directors announced that they would meet today to consider bonus issue. The scrip touched an intra-day high of Rs146 and a low of Rs122 and recorded volumes of over 9,00,000 shares on NSE.
Vijaya Bank surged by over 5% to Rs43. The company announced that it hiked 1-2 years deposit rates by 30bps to 8.8%. The scrip touched an intra-day high of Rs44 and a low of Rs41 and recorded volumes of over 8,00,000 shares on NSE.
Ranbaxy gained by 2.5% to Rs581 after the company company’s alliance with IPCA received USFDA marketing approval for Metoclopramide. The scrip touched an intra-day high of Rs588 and a low of Rs564 and recorded volumes of over 22,00,000 shares on NSE.
JSW Steel ended on a flat note to close at Rs992. Reports stated that the company plans to set up a greenfield plant in Georgia (Europe) in partnership with UK's Geo Steel to produce bars used in building construction.
The company would invest around US$42mn by way of equity and debt. While JSW Steel would hold 49% stake in the venture, the majority stake will be held by Geo Steel, report stated. The scrip touched an intra-day high of Rs1008 and a low of Rs955 and recorded volumes of over 1,00,000 shares on NSE.
Balmer Lawrie surged by over 4.9% to Rs419 after reports stated that the company has decided to acquire a 50% stake in a travel and tourism company and has appointed SBI Caps to carry out a due diligence exercise and has set aside Rs1bn for organic and inorganic growth in areas like, travel and tourism, logistics infrastructure and services and greases and lubricants, said leading business daily.
According to report, Balmer Lawrie plans to expand its brand network in the sector by opening offices in Pune and other centres and the company is looking for opportunities to set up container freight stations in the south and west coast besides inland container depots in the north, stated reports. The scrip touched an intra-day high of Rs421 and a low of Rs402 and recorded volumes of over 11,000 shares on NSE.
Corporate News
Reliance Industries and ONGC may resume oil production from PMT fields. (ET)
Reliance Communications is considering buying over 40% in MTN. (BS)
Hindalco plans US$1bn rights issue. (ET)
IDEA close to launching operations in Mumbai. (ET)
UBI plans to raise upto US$2bn via MTN. (BS)
Reliance Power, Tata Power, Lanco, amongst companies qualified for Rajpura thermal power project. (BL)
Ashok Leyland may divest stake in Nissan JV. (ET)
Tech Mahindra enters into IPTV global alliance with Microsoft. (ET)
GMR’s Delhi hospitality project hits AAI hurdle. (ET)
Tata Motors plans to build US$150mn factory in Mexico to assemble cars for exports to South America. (DNA)
Two Glenmark drugs are set to enter the clinical trial stage in October 2008. (DNA)
JSW Steel Group will invest Rs5.5bn in Chile mines. (BS)
Jet Airways and SpiceJet are introducing sharp cutbacks in staff cost and salaries. (BS)
Pantaloon Retail’s arm ties-up with Dubai’s Aramex to open a 90,000 sqft warehouse in Mumbai. (BL)
Aditya Birla Group’s BPO division plans to acquire captive arms of niche financial services firms. (DNA)
Voltas buys remaining 50% stake in Fedders International. (FE)
Cadila to spin-off and merge the consumer products division into its unit, Carnation Nutra Analogue-Foods Ltd. (FE)
Escorts Group is developing a bio-fuel powered tractor. (FE)
Castrol intends to spend Rs1bn on advertisement and product promotion. (BL)
S Kumars Nationwide plans acquisitions in Europe and North America. (BS)
IBM set to invest in KLG Systel. (DNA)
Ipca Labs is looking at an overseas acquisition in the range of US$10-20mn. (DNA)
Chettinad Cement plans new plant in Karnataka and defers rights issue. (BL)
Indo Asian Fusegear is planning to foray into power generation. (BS)
KEC International wins Rs1.6bn order from NTPC for rural electrification in Jharkhand. (ET)
Godawari Power to invest Rs2.8bn over the next two years to expand capacity and acquire majority stake in an iron ore pelletisation plant. (DNA)
Champagne Indage plans to raise US$50mn through issue of securities in overseas market. (BL)
Shri Lakshmi Cotsyn plans to invest an additional Rs3.5bn in FY09 on capacity expansion. (ET)
Plethico Pharma plans to acquire a US-based nutraceuticals company. (DNA)
Economic News
Nuclear Power ventures may get overseas funding. (ET)
Indirect tax collection registers a growth of 12.8% in the first two months of the current fiscal. (BS)
A dull day at US Market
Nasdaq outperforms as several brokerage downgrades weigh on overall market
Technology sector was a sole winner in today’s trading at US Market as indices closed almost unchanged but Nasdaq was the only index to register decent gains. Financials were also strong today but weakness in telecom and a couple of other major sectors offset the same today, Monday, 16 June, 2008. Crude prices neared $140 earlier in the day but then slipped and ended marginally lower going into close. Four of the major economic sectors closed higher. Financials, Technology, Energy and Materials were the winning sectors.
The Dow Jones industrial Average traded between red and green for the entire day. It was down more than 50 points earlier in the day. Going into close, the index ended the day with a loss of 38 points at 12,269.58. The Nasdaq Composite Index, finished higher by 20.2 points at 2,474.78. S&P 500 finished higher by 0.11 points at 1,360.14.
Nineteen out of thirty Dow stocks ended in the red today. AT&T and Verizon – the telecom stocks led the Dow laggards. The financial heavyweights like Citigroup were some of the stocks that helped Dow to restrict its losses.
In economic news, according to the NY Empire State Index, June manufacturing activity in the New York region contracted by a larger-than-expected amount. The reading slipped 5.5 to -8.7, which fell short of the consensus estimate of -2.0. The stock market responded negatively to the report.
Brokerage downgrades of giants like General Electric, Verizon and AT&T prevented the broader market from making an advance.
The Nasdaq outperformed today with help from Research In Motion which benefitted from several positive brokerage comments
The National Association of Home Builders reported the industry to be as gloomy as ever in June, with about one in five builders holding the view the housing market is good.
Crude prices retreated back after nearing $140/barrel today. 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.
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. The dollar index , which tracks the performance of the greenback against a basket of other major currencies, was off 0.6% at 73.62.
Volume on the New York Stock Exchange topped 1.1 billion, with advancers ahead of decliners 3 to 2. On the Nasdaq, more than 804 million shares traded, with advancing stocks outpacing those declining by 4 to 3.
Key earnings releases from Goldman Sachs and Best Buy are due tomorrow. Both report prior to opening bell. Tuesday's economic data includes May Housing Starts and the May Producer Price Index followed by the Industrial Production Index for May.
Gold dives, losses limited on mixed US data
US industrial production data awaited
The yellow metal futures dived immediately after the data showed that the US data showed that the Producer prices rose. However gains in the dollar were capped as the housing starts fell to their lowest levels in 17 years and fall in the building permits. The core PPI that excluded the volatile items like energy and food prices however rose 0.2% lower than 0.4% last year also blocked the gains in dollar.
The U.S. current account deficit widened to $176.4 billion in the first three months of the year from $167.2 billion in the fourth quarter which is 5% of gross domestic product. US may building permits fall 1.3% to 969 thousand. Housing starts fell 3.3% to a seasonally adjusted annual rate of 975,000 in May, the lowest level since March 1991. Starts of single-family homes fell 1% to an annual rate of 674,000, also the lowest in 17 years. Wholesale prices rose 1.4% in May, after seasonable adjustments, with energy prices gaining 4.9% and food prices rising 0.8%, the Labor Department reported Tuesday. May's core PPI -- which excludes food and energy prices -- rose 0.2%.
The US industrial production figures and capacity utilization rate are due out 9:15 a.m.
COMEX Gold futures for August contract fell to as low as $876.2 an ounce down $10.1. The supports are at 871 levels with the resistance at 865 levels. Comex gold warehouse stocks were unchanged at 7,603,090 ounces Monday, while silver stocks were up 1,829,024 ounces at 134,664,359 ounces.
MCX Gold for the upfront month contract is trading down around Rs 80 at Rs 12202 per 10 grams, having earlier dipped to as low as 12160. The supports are at 12000 levels.
In currencies, the pound slipped from a one-week high against the dollar on Tuesday as a higher-than-expected rise in inflation raised concerns over the health of the UK economy. Figures showed UK consumer price inflation rose at an annual rate of 3.3 per cent in May, the highest since records began in 1997 and way above the Bank of England’s target of 2 per cent. The euro is up to $1.5484 from $1.5467 late Monday afternoon.
A closely watched gauge of German economic sentiment- the ZEW economic expectations index fell to -52.4 in June, news reports said, from -41.4 in May. The ZEW current conditions index fell to 37.6 in June from 38.6 in May, compared to expectations for a fall to 37.3.
Today's Pick - Allcargo Logistics
We recommend investors buy the stock of Allcargo Global Logistics with a short-term perspective. From the charts, we see that it has been on a long-term downtrend from its January 2007 peak of Rs 1,355 to its June 2008 low of Rs 620.
However, the stock found support at around Rs 640 for the second time (a key support level) recently and commenced an up move. At around Rs 700, the stock crossed over the 21-day moving average, showing signs of bullishness.
Recently, the stock penetrated the 50-day moving average as well as the long-term down trendline. The daily relative strength index is featuring in the bullish zone and the weekly RSI is rising towards this zone. The moving average convergence and divergence is on the brink of entering positive territory.
We are bullish on the stock in the short-term. We expect the stock’s current up move to prolong until it hits our price target of Rs 895 in the approaching trading sessions. Traders with a short-term perspective can buy the stock while maintaining stop-loss at Rs 750.
via BL
RIL June 2008 futures most active
Turnover in F&O segment vaults
Nifty June 2008 futures were at 4639.35, a discount of points 13.65 as compared to spot closing of 4,653.
NSE's futures & options (F&O) segment turnover advanced to Rs 42624.38 crore from Rs 40,166.83 crore yesterday, 16 June 2008.
Reliance Industries (RIL) June 2008 futures were at discount at 2336 compared to the spot closing of Rs 2338.95. It was the most active contract with turnover of Rs 1017.33 crore.
Reliance Petroleum June 2008 futures were at premium at 186.50 compared to the spot closing of Rs 185.65.
Ranbaxy Laboratories June 2008 futures were at premium at 588 compared to the spot closing of Rs 587.10.
In the cash market, the S&P CNX Nifty surged 80.50 points or 1.76% at 4,653.
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