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Friday, June 20, 2008
BSE Bulk Deals to Watch - June 20 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
20/6/2008 520077 AMTEK AUTO L WARHOL LIMITED B 1315082 240.00
20/6/2008 520077 AMTEK AUTO L COPTHALL MAURITIUS INVESTMENT LTD S 975187 240.06
20/6/2008 520077 AMTEK AUTO L CLSA MAURITIUS LIMITED S 868813 240.05
20/6/2008 532981 ANU LABS S.M.NISSAR B 69531 413.75
20/6/2008 532981 ANU LABS BHANDARI RAKHI KALPESH B 61061 413.23
20/6/2008 532981 ANU LABS RUPESH DALAL B 64928 413.70
20/6/2008 532981 ANU LABS SUMMIT COMMUNICATIONS PVT LTD S 80000 409.21
20/6/2008 532981 ANU LABS S.M.NISSAR S 69531 414.32
20/6/2008 532981 ANU LABS BHANDARI RAKHI KALPESH S 61061 416.51
20/6/2008 532981 ANU LABS RUPESH DALAL S 64928 413.95
20/6/2008 532946 BANG MARUTI SECURITIES LTD B 84218 290.44
20/6/2008 511698 BHAGYASHREE SHIVALIK SECURITIES LTD B 173900 95.50
20/6/2008 511698 BHAGYASHREE GALA FINANCE AND INVESTMENT LTD B 43000 95.50
20/6/2008 511698 BHAGYASHREE FIDELITY B 99100 95.41
20/6/2008 511698 BHAGYASHREE MASTER CAPITAL SERVICES LTD S 173000 95.50
20/6/2008 511698 BHAGYASHREE HARJEET SINGH ARORA S 45000 95.50
20/6/2008 511698 BHAGYASHREE CHIRAG SINGHANIA S 43000 95.50
20/6/2008 507833 COMPUTER POI UP TODATE SYNTHETICS PRIVATE LIMITED B 80000 5.10
20/6/2008 507833 COMPUTER POI ANOOP NOPANY S 99800 5.10
20/6/2008 531863 GEEKAY FINAN LOTUS GLOBAL INVESTMENTS LIMITED B 70000 65.35
20/6/2008 532764 GWALIOR CHEM GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD B 128627 95.57
20/6/2008 506134 K B STEEL LT GULAB T VORA B 12000 30.50
20/6/2008 506134 K B STEEL LT NIRAV G KANSARA S 11950 30.50
20/6/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD B 54745 27.37
20/6/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD S 28240 27.32
20/6/2008 501209 MAST MEDI SY BAKLIWAL INVESTMENT B 30000 39.83
20/6/2008 532986 NIRAJ CEMENT AYODHYAPATI INVESTMENT PVT LTD B 125841 195.92
20/6/2008 532986 NIRAJ CEMENT AMRUT SECURITIES LTD B 143000 201.90
20/6/2008 532986 NIRAJ CEMENT RAJ CORPORATION B 100000 201.13
20/6/2008 532986 NIRAJ CEMENT BHAVESH PRAKASH PABARI B 74000 198.31
20/6/2008 532986 NIRAJ CEMENT N D NISSAR B 185405 198.38
20/6/2008 532986 NIRAJ CEMENT KAUSHIK SHAH SHARES SEC PL B 174671 191.53
20/6/2008 532986 NIRAJ CEMENT BHANDARI RAKHI KALPESH B 88580 200.01
20/6/2008 532986 NIRAJ CEMENT MANISH SARVAIYA B 113937 198.98
20/6/2008 532986 NIRAJ CEMENT ANIL AMRUTLAL GANDHI S 73750 194.51
20/6/2008 532986 NIRAJ CEMENT AYODHYAPATI INVESTMENT PVT LTD S 60841 198.20
20/6/2008 532986 NIRAJ CEMENT AMRUT SECURITIES LTD S 143000 203.10
20/6/2008 532986 NIRAJ CEMENT S.M.NISSAR S 293053 199.30
20/6/2008 532986 NIRAJ CEMENT BHAVESH PRAKASH PABARI S 99000 200.12
20/6/2008 532986 NIRAJ CEMENT N D NISSAR S 184405 198.36
20/6/2008 532986 NIRAJ CEMENT KAUSHIK SHAH SHARES SEC PL S 174671 191.80
20/6/2008 532986 NIRAJ CEMENT BHANDARI RAKHI KALPESH S 88580 201.08
20/6/2008 532986 NIRAJ CEMENT MANISH SARVAIYA S 113937 199.43
20/6/2008 530069 PRO DEV&TEC SAROJINI FINANCE AND INVESTMENT P LTD B 400000 2.92
20/6/2008 530069 PRO DEV&TEC S S H REHMAN S 400000 2.92
20/6/2008 532791 PYRAMID SAIM P. S. SAMINATHAN B 1370000 250.00
20/6/2008 532791 PYRAMID SAIM NIRMAL KOTECHA S 1370000 250.00
20/6/2008 532987 RANE BRAKE EUREKA STOCK AND SHARE BROKING SERVICES LTD. B 70175 100.66
20/6/2008 532987 RANE BRAKE EUREKA STOCK AND SHARE BROKING SERVICES LTD. S 70175 100.73
20/6/2008 511607 SHLOKA INFO PARESH CHANDRAKANT DOSHI S 19587 63.67
20/6/2008 531499 SYBLY INDUSR RAIS KHAN B 34608 7.10
20/6/2008 531499 SYBLY INDUSR SANOBER KHAN S 34608 7.10
Domestic Newsletter
Wheat output crosses Govt target
India's wheat production touched 78mn tons in the 2007-08 season, higher than what the Government had projected. "Wheat production touched 78mn tons this year," Food Corporation of India (FCI) Chairman and MD Alok Sinha said. As per the Government's third advance estimates, wheat production was projected at a record 76.78mn tons in the 2007-08 season, compared with 75.81mn tons in the previous year. Spurred by record production and higher minimum support price, FCI and other government agencies have so far procured 22.14mn tons of wheat as against the target of 15mn tons. Wheat procurement was 11.13mn tons last year. Sinha also said that he was confident about attaining rice procurement target of 27.5mn tons by September.
Airlines announce another price hike
Air India, Jet Airways, Kingfisher-Deccan combine and low-cost carrier SpiceJet raised air fares following the recent hike in jet fuel prices. The new charges are being added to the basic fare and do not include taxes and surcharges levied by various airlines. Air India, Jet and Kingfisher increased base fares for up to 750 km by Rs1,000, between 750 km and 1,000 km by Rs2,250 and beyond 1,000 km by Rs3,000. New Delhi-based SpiceJet increased the fuel surcharge. The fuel surcharge for up to 750 km has gone up by Rs300 and beyond 750 km by Rs550. In the case of Deccan, for distances below 750 kms, the minimum base fare will now be Rs500; for distances between 751 kms to 1000 kms the minimum base fare will now be Rs1500 while for distances over 1001 kms, the minimum base fare will now be Rs2000.
Sahara gets reprieve from RBI
The Reserve Bank of India (RBI) allowed Sahara India Financial Corp. to accept new deposits maturing till June 2011. SIFCL is hereby directed not to accept any new deposit which matures beyond June 30, 2011 and to stop accepting installments of existing deposit accounts also with effect from that date, RBI said in an order which followed two meetings between Sahara group and RBI officials. In its earlier order on June 4, RBI had barred SIFCL from accepting fresh deposits from the public and had directed the company to repay the depositors on maturity. RBI said that the fresh order is being given after taking into consideration all the oral and written submission made by SIFCL and to protect the interests of depositors.
Ranbaxy, Pfizer to settle all Lipitor cases
Ranbaxy and Pfizer agreed to settle all litigations against each other, involving the US drug major's cholesterol-reducing treatment Lipitor. The two companies also agreed to settle patent cases regarding Pfizer's Caduet and Quinapril. Ranbaxy will have a license to sell generic versions of Lipitor and Caduet in the US effective November 30, 2011. Ranbaxy was the first generic challenger to the listed Lipitor patents and, as such, holds the rights to 180 days of marketing exclusivity in the US. However, the deal means a delay of 20 months in launching generic Lipitor. Lipitor has global sales of more than US$12bn, with the US alone accounting for US$8bn. Caduet has worldwide sales of US$400mn.
The agreement on Lipitor litigations covers US, Canada, Australia, Belgium, Netherlands, Germany, Sweden and Italy. Pfizer and Ranbaxy also resolved their disputes regarding Lipitor in Malaysia, Brunei, Peru and Vietnam. The settlement also resolves all patent litigation with Ranbaxy relating to Accupril in the US and Viagra in Ecuador. But, the patent infringement litigation between Pfizer and Ranbaxy relating to Lipitor will continue in five other European countries - Finland, Spain, Portugal, Denmark and Romania.
Anil Ambani to join hands with Spielberg: reports
Anil Ambani is dreaming big as far his group's proposed foray into Hollywood is concerned. The Reliance-Anil Dhirubhai Ambani Group (ADAG) is in talks with Steven Spielberg's DreamWorks SKG to form a joint venture, the Wall Street Journal (WSJ) reported. The move may help Spielberg finance his exit from Viacom's Paramount Pictures later this year, the US-based business daily reported in its online edition. ADAG may give DreamWorks up to US$600mn for the new venture and DreamWorks may raise another US$500mn through debt financing, WSJ said. ADAG is likely to get a large stake in the new company, it added. The proposed JV is expected to make six films a year and distribute the same through a Hollywood studio.
RCOM may begin criminal proceedings against RIL: reports
The feud between the two Ambani brothers over RCOM's proposed merger with South African telecom major MTN doesn't seem to be ending, with the two sides exchanging verbal blows almost on daily over RIL's claim of right of first refusal (RoFR). In the latest round of the war of words, RCOM said it may start criminal proceedings against Reliance Industries (RIL) officials for signing January 12, 2006 agreement, if the latter continues to assert its RoFR to buy a majority stake in RCOM. In its response, RIL said there is no criminality attached to the signing of the agreement dated January 12, 2006. "If any proceedings are adopted, we will not only defend them but will also consider our options for such a malicious action," the Mukesh Ambani owned company said. Earlier, RCOM announced that its negotiations with MTN Group for a potential combination of their businesses were ongoing. The company was reacting to news that RIL had sent a communication to MTN, claiming an alleged right of first refusal to buy a controlling stake in RCOM.
Goldman Sachs buys stake in Shapoorji Pallonji firm
Goldman Sachs (GS) acquired a minority stake in Sterling & Wilson Pvt. Ltd (S&W), a part of the Shapoorji Pallonji Group for US$50mn. S&W is one the leading Mechanical, Electrical and Plumbing (MEP) contracting companies in the country and is amongst the very few companies that have the ability to offer the full MEP package as a one stop solution provider.
Lehman Bros arm to buy 50% in Unitech project
Lehman Brothers Real Estate Partners agreed to invest about US$175mn (Rs7.4bn) to acquire a 50% take in the initial phase of Unitech's master-planned project on the Western Expressway of Mumbai. The project is being jointly developed by Unitech and their local Mumbai partners. The initial phase entails development one million square feet of office space of the total developable area of about 18mn sq ft. Lehman Brothers Real Estate Partners and the Western Expressway JV will each contribute 50% of the construction cost.
Action from Deal Street
Tata Communications signed equity Joint Venture agreement with the shareholders of China Enterprise Communications (CEC) for the acquisition of 50% interest in the Chinese company for an undisclosed amount. This JV will be the first-of-its-kind in the Chinese telecom sector post China's entry into the WTO. CEC is a value-added telecom services and integrated IT solutions provider headquartered in Beijing. CEC was recently awarded a nationwide IP-VPN service license. It has network reach throughout China, with no regional restrictions on its service capabilities. CEC provides VPN connectivity reach into 347 cities in China. This reach complements Tata Communications, which has VPN presence in 120 Indian cities and 19 other major business capitals in North America, Europe and Asia.
Punj Lloyd said it has signed an agreement, to divest interests in its Internet Service Provider ( ISP) division to a Joint Venture (JV) formed between Shyam Group, the promoters of Shyam Telelink, and Spanco Telesystems.
Sintex Industries acquired Digvijay Communication and Networks Pvt Ltd (DCNPL) through its 74% subsidiary Zeppelin Mobile Systems India Ltd (Zeppelin) in the form of a slump sale deal amounting to Rs540mn. The acquired company has a promising set of product / service offerings and it provides its range of solutions to leading Indian OEMs and telecom companies.
Exide Industries, the largest lead acid storage battery company in South Asia, announced acquisition of 51% shareholding in Leadage Alloys India Ltd., a lead smelting company located near Bangalore. Earlier this month, the company's board had approved a maximum investment of up to Rs350mn for such an acquisition.
Sujana Towers buys 51% stake in Mauritius based co
Poor listing for Niraj Cement
Niraj Cement Structural started trading at Rs185 against the issue price of Rs190. The IPO was made in the price band Rs175-190 per share of Rs10 each. The stock closed at Rs191 just managing to stay above its issue price touching an intra-day high of Rs194 and a low of Rs169. The issue was subscribed by only 1.73 times. The non-institutional investor portion got subscribed four times, the retail portion 3.8 times. However, the QIB portion remained un-subscribed. The company said it would use the issue proceeds to fund its capital equipment requirement, and also working capital needs.
Two senior BSE board members resign
The Bombay Stock Exchange's (BSE) non-executive chairman, Shekhar Datta and shareholder-director Jamshyd N Godrej have resigned, according to reports. A spokesman for the exchange confirmed the resignations but did not give any reasons for the same. According to reports, Datta and Godrej resigned citing micro-management of the exchange by some board members. Datta was quoted as saying that he resigned due to differences over the empowerment of professional management. Nobody yet knows what provoked the chairman and Godrej Boyce to quit, although officially Godrej has excused himself on account of lack of time.
Direct tax collections surge 71% yoy
Net direct tax collections in the first two months of the present fiscal year (April-May 2008-09) stood at Rs.2.29bn as against Rs.1.33bn, registering a growth of 71.28%. Growth in Corporate Taxes was 68.05% (Rs.812mn crore as against Rs.483mn), while Personal Income Tax (including FBT, STT and BCTT) grew at 73.05% (Rs.1.47bn as against Rs.848mn). Tax deducted at source (TDS) continued to grow this fiscal at about 51%, i.e. the same level as in the last fiscal. The robust growth in direct taxes has been achieved despite larger refund payouts at Rs.901mn in the first two months of this fiscal as against Rs.503mn during the first two months of last fiscal. In spite of manpower shortage, refunds were issued to over 4.8mn taxpayers last fiscal (2007-08) compared to about 4.45mn refunds in the previous fiscal (2006-07). It is the endeavour of the Income Tax department to provide better taxpayer services, particularly in the area of issuance of refunds.
BRIC set for a mobile boom: eMarketer
Brazil, Russia, India and China, collectively known as BRIC, represent the next great growth curve for both the mobile and interactive marketing industries, according to eMarketer. It projects that the BRIC countries will account for over 1.7bn mobile phone subscribers by 2012 and expects over 680mn subscribers to access the mobile Internet.
Home to over 40% of the world's population, the BRIC countries form the core of an emergent global middle class that will number over 1bn people by 2015, says eMarketer. Mobile will be the primary interactive screen for this new generation of consumers, and no major advertising agency can pitch a global brand without referencing its BRIC assets and capabilities, especially those in China and India, it adds. Likewise, the largest global telecom companies have bet a large amount of their future growth on sales to BRIC-based mobile operators.
"Mobile is the Internet for an increasingly large and attractive consumer segment an important distinction for marketers to keep in mind," says John du Pre Gauntt, senior analyst and author of the new report, "Mobile BRIC: Extreme Growth Ahead."
"As these huge populations within BRIC accumulate disposable income, they are poised to form interactive relationships with local and global brands primarily through the mobile phone," he adds. "With PC and broadband penetration far below that of mobile, marketers and mobile operators find themselves in uncharted territory."
Five of the world's 10 largest cities are located in BRIC, along with four of the five top markets for new mobile subscribers, says eMarketer. Rapid growth in entertainment and media consumption in the BRIC countries is important for marketers looking to interact with mobile consumers.
Weekly Newsletter - June 20 2008
Worries seem to get inflated with the latest inflation numbers skyrocketing beyond imagination. The market was more or less ready for a double digit inflation but the fact that it crossed 11% was indeed a negative surprise. Expectations now are on what the central bank would do. On the political front, there could be some drama but no dramatic end in sight.
The prime minister may threaten to resign over the nuclear issue but it may just remain a threat. While the government looks at buying time, investors can look at buying stocks for the medium to long term. And no harm in booking profits if you are making money in the short term. Pleasant surprises could occasionally come your way often in the form of better global cues. Large caps purchased around these levels sure hold much more promise. The coming week will also see the F&O expiry. To that extent some short covering will keep the bears on the defensive though it need not bring back the bulls on the offensive.
INFLATION HITS 13-YEAR HIGH
Inflation zoomed to a 13-year high in the first week of June after the Government hiked retail prices of petroleum products to help provide a much-needed succor to the state-run oil marketing companies, who had been reeling under record crude oil prices. Inflation, based on the wholesale price index (WPI), soared to 11.05% for the week ended June 7 from 8.75% in the preceding week. Inflation rate was well above average forecasts that ranged between 9.8-10.8%. The rate is now at the highest since May 6, 1995, when it was 11.11%. The annual inflation rate was 4.28% during the corresponding week of the previous year. Inflation for the week ended April 12 was revised upwards to 7.95% from 7.33%.
The stock market fell sharply, led by banking and real estate stocks, after the announcement of inflation data. The Sensex and the Nifty closed at their lowest levels since August 2007. Bond prices slid, with the yield on the benchmark 10-year Government bond expiring in 2018 rising as high as 8.66%, their highest in nearly seven years. The rupee was more or less stable against the dollar at 42.97 amid market talk that the central bank may have sold dollars to prevent a further decline in the local currency.
The WPI for All Commodities climbed 1.8% to 235.2 points in the week under consideration. The index for Fuel & Power jumped 7.8% to 374.2 while the Primary Articles index was down 0.4% at 242.5. The index for Manufactured Products rose 0.3% to 201.6. Most of the jump in inflation came from the fuel price hike announced on June 4. The price of Light Diesel Oil surged 21%, while that of Liquefied Petroleum Gas (LPG) jumped 20% and Naphtha prices were up by 17%. Furnace Oil prices increased by 15%, Aviation Turbine Fuel (ATF) prices rose 14%. Prices of Petrol and High-speed Diesel went up by 11% and 10%, respectively. Bitumen prices gained 7%.
The index for Basic Metals, Alloys & Metal Products rose by 1.1% to 295.8. Other Iron Steel prices jumped 14%, while that of Basic Pig Iron and Foundry Pig Iron were up 11% each. MS Bars & Rounds (9%), Steel Sheets, Plates & Strips (4%), and Pipes & Tubes (2%) too turned costlier.
According to some economists, the Reserve Bank of India (RBI) is likely to take more measures to contain spiraling inflation. The fresh tightening step could be announced ahead of next month's quarterly review. Last week, the central bank had hiked the repurchase rate (repo rate), at which banks borrow from RBI, by 25 basis points to 8%. It remains to be seen which instrument, the central bank employs this time to check inflation. The RBI might push up the rupee to fight inflation, some economists said.
The Government, which has been facing flak from its Left allies and the opposition, may also chip in with new set of administrative measures, including price controls on certain items and ban on exports of some others. As a first step, it decided to sell edible oils through ration shops from July. More such steps could be in the offing over the next few days. Meanwhile, in a scary prediction, HSBC's chief Indian economist warned that India could remain in double digits for the next nine months and peak at 15% by the end of 2008.
Nirmal Kotecha sells PSTL
Pyramid Saimira Theatre Ltd said its chairman, P.S. Saminathan, bought on Friday 1.37 million shares, or about 4.8 percent, in the company from Nirmal Kotecha, part of the founders' group.
Earlier in the day, a block deal of about 4.9 percent took place at 250 rupees per share on the BSE.
Shares in the cinema chain operator closed down 19.58 percent at 216.40 rupees
via Reuters
NSE Bulk Deals to Watch - June 20 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
20-JUN-2008,AMTEKAUTO,AmtekAuto-Roll Sett,WARHOL LIMITED,BUY,1384918,240.00,-
20-JUN-2008,GSSAMERICA,GSS America Infotech Limi,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,68941,314.39,-
20-JUN-2008,GWALCHEM,Gwalior Chemical Industri,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,BUY,171373,95.84,-
20-JUN-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,BUY,2311028,45.20,-
20-JUN-2008,NEOCURTHER,Neocure Therapeutics Ltd,NIKHILA REDDY YEDAGURI,BUY,110467,28.35,-
20-JUN-2008,RBL,Rane Brake Lining Limited,AMBIT SECURITIES BROKING PVT. LTD.,BUY,44111,95.99,-
20-JUN-2008,RBL,Rane Brake Lining Limited,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,49572,98.21,-
20-JUN-2008,RBL,Rane Brake Lining Limited,B K SHAH CO KETAN BHAILAL SHAH,BUY,71706,105.90,-
20-JUN-2008,RBL,Rane Brake Lining Limited,R.M. SHARE TRADING PVT LTD,BUY,80912,99.87,-
20-JUN-2008,RBL,Rane Brake Lining Limited,TRANSGLOBAL SECURITIES LTD.,BUY,147560,98.82,-
20-JUN-2008,SASKEN,Sasken Commu Techno Ltd,PARWATI CAPITAL MARKET PRIVATE LIMITED,BUY,146921,160.74,-
20-JUN-2008,GSSAMERICA,GSS America Infotech Limi,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,68941,314.73,-
20-JUN-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,SELL,2311028,45.20,-
20-JUN-2008,RBL,Rane Brake Lining Limited,AMBIT SECURITIES BROKING PVT. LTD.,SELL,44111,96.39,-
20-JUN-2008,RBL,Rane Brake Lining Limited,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,49573,97.97,-
20-JUN-2008,RBL,Rane Brake Lining Limited,B K SHAH CO KETAN BHAILAL SHAH,SELL,71707,105.07,-
20-JUN-2008,RBL,Rane Brake Lining Limited,Esdotcom Sup&Software S P Ltd,SELL,56364,115.60,-
20-JUN-2008,RBL,Rane Brake Lining Limited,R.M. SHARE TRADING PVT LTD,SELL,80912,100.08,-
20-JUN-2008,RBL,Rane Brake Lining Limited,TRANSGLOBAL SECURITIES LTD.,SELL,147560,97.02,-
20-JUN-2008,SASKEN,Sasken Commu Techno Ltd,PARWATI CAPITAL MARKET PRIVATE LIMITED,SELL,146921,160.06,-
Post Session Commentary - June 20 2008
Indian market faced the blood bath today during the trading session and closed in deep red with BSE Sensex reached to its lowest in 2008 due to the high inflation figure that increased more than expectation and reached to 13 year high to stood at 11.05% for the week ended 7th June 2008 as against 8.75% in earlier week. Interest rate sensitive sectors suffered most on the expectations that RBI may announce some measures to curb inflation, like a hike in interest rates. The domestic market opened on positive zone on the back of favorable global cues but it was not able to sustain the momentum and soon slipped to extremely negative territory since initial bell. Stocks were hammered further to close in deep red. Political uncertainty in country also added to the negative sentiment as CPM threatened the UPA to withdraw its support if government moves forward with the deal. Government is planning go ahead to Nuke deal without the Left consent. All indices closed in negative and metal and oil & gas stocks were most unfavorable as most of selling was seen in these baskets. The market breadth was extremely negative as 2,247 stocks closed in red and 450 stocks closed in green.
The BSE Sensex closed lower by 516.70 points at 14,571.29 and NSE Nifty ended down by 156.70 points at 4,347.55. The BSE Mid Caps and Small Cap closed negative with fall of 197.74 points and 262.76 points at 6,032.43 and 7,397.66 respectively. The BSE Sensex touched intraday high 15,202.01 and intraday low of 14,519.27.
Losers from the BSE are Rel Com Ltd (6.65%), Reliance (6.61%), HIndalco (6.37%), JP Assoc (6.03%), Rel Infra (4.92%), Bharti Airtel (4.76%), Ambuja Cement (4.71%), Tata Steel (4.66%) and DLF Ltd (4.57%).
The Metal index closed lower by 603.80 points at 14,528.06. Losers are NALCO (6.75%), Hindalco (6.37%), Ispat Indus (5.61%), Tata Steel (4.66%), Sesa Goa Ltd (4.59%), Jindal Steel (4.52%), and Gujarat Nre C (3.52%).
The Oil & Gas index closed down by 498.96 points at 9,419.86. As Reliance Nat Res (7.27%), Essar Oil Ltd (6.62%), Reliance (6.61%), Cairn India (5.69%), Reliance Pet (5.19%) and Aban Offshore (4.57%) closed in negative territory.
The Capital Goods index dropped by 267.90 points to close at 11,399.79. Major losers are Praj Indus (6.30%), Kir Oil Eng (5.74%), Seimens Ltd (5.21%), Kirloskar Br (4.83%), Crompton Geaves Ltd (4.72%) and Alstom Proje. (4.68%).
The Reality Index closed lower by 250.79 points at 5,383.81. Losers are Housing Devel (9.17%) along with Akruti City (7.14%), Sobha Dev (6.66%), Parsvnath (6.28%), Penl;and Ltd (6.17%) and Ansal Infras (5.80%).
The Banking index closed down by 208.40 points at 6,804.78. Losers are BOI (7.36%), Bank of baroda (6.24%), Indian Overseas Bank (5.78%), OBC (5.50%), SBI (4.11%), Allahabad Bank (4.08%) and Union Bank (4.06%).
The Pharma index dropped by 101.52 points to close at 4,325.40 as Nicholas Pira (7.93%), Fortis Health (6.73%), Sunpha Adv (6.26%), Aurbindo Pharma (5.73%) and Matrix (5.34%) closed in negative territory.
Market sinks on bear hammering
The market went into a complete tailspin, as the much-awaited correction shaved nearly 700 points off the Sensex during the intra-day trades. Positive global cues like oil prices cooling off further failed to lift the sentiment, as investors instead tracked the falling Asian indices since early trades.After resuming on a positive note at 15,168, the market turned negative and remained under the bear hug for the rest of the session. The Sensex nearly slipped below 14,600 towards the noon trades as a wave of selling in heavyweights, oil, realty and metal stocks saw it slump to an intra-day low of 14,519. The Sensex finally ended 3.42% or 517 points lower at 14,571, while the Nifty crashed 157 points to close at 4,347. Among the Asian indices, Nikkei tanked 1.33% (down 188 points) at 13,942 and Hang Seng dropped 0.23% (down 52 points) at 22,745.
The market breadth was extremely negative, Of the 2,708 stocks traded on the BSE, 2,247 stocks declined, 450 stocks advanced and 43 stocks ended unchanged. All the sectoral indices took sharp beatings. BSE Realty index bore the major brunt and crashed 5.03% at 9,420 while BSE Metal index, BSE Teck index, BSE Bankex index and BSE FMCG index dropped over 2-4% each.
Except ONGC, all other 29 stocks in the Sensex pack ended in the red. Among the major losers Reliance Communications tumbled 6.65% at Rs489, Reliance Industries slumped 6.61% at Rs2,079, Hindalco crumbled 6.37% at Rs158.70, Jaiprakash Associates plunged 6.03% at Rs165.15, Reliance Infrastructure dropped 4.92% at Rs943.65, Bharti Airtel declined 4.76% at Rs754, Ambuja Cement dropped 4.71% at Rs84.05, Tata Steel tumbled 4.66% at Rs772, DLF lost 4.57% at Rs452.50 and SBI fell 4.11% at Rs1,241.05. Other stocks also dropped over 2-3% each.
Over 1.32 crore Reliance Natural Resources shares changed hands on the BSE followed by IFCI (1.27 crore shares), Reliance Petroleum (1.15 crore shares), Chambal Fertilisers (1.07 crore shares) and Ispat Industries (0.98 crore shares).
Realty index mauled
The BSE Realty index was down 253.56 points or 4.50% at 5,381.04, faring worst among the sectoral indices on BSE.
It underpeformed the market. BSE Sensex was down 454.41 points or 3.01% at 14,633.58. Data showing a surge in inflation to a 13-year high of 11.05% in early June 2008 rattled the bourses today.
Among the other sectoral indices which underperformed the market were BSE Oil & Gas index (down 394.94 points or 3.98% at 9,523.91), BSE Metal Index (down 595.80 points or 3.94% at 14,536.06), and BSE Tech index (down 106.40 points or 3.17% at 3,247.42).
BSE PSU index (down 141.79 points or 2.17% to 6,382.82), BSE Healthcare index (down 96.43 points or 2.18% to 4,330.49), BSE Capital Goods index (down 260.94 points or 2.24% to 11,406.75), BSE IT index (down 99.27 points or 2.31% to 4,206.63), BSE Power index (down 64.91 points or 2.49% to 2,540), BSE Auto index (down 111.95 points or 2.70% to 4,032.18) and BSE’s banking sector index Bankex (down 207.80 points or 2.96% to 6,805.38), though in the red, outperformed Sensex.
Sensex, Nifty at 10-month low
It was the worst day for Indian equity markets since the beginning of this year. Investors chucked stocks to survive the snowballing threat of a possible monetary tightening by Reserve Bank of India to rein in soaring inflation.
The key benchmark indices plummeted over 3% to end at their lowest level in 10 months after the latest data showed a surge in inflation to 13-year high early this month. The market breadth was extremely weak due to widespread selling. All the sectoral indices on BSE ended in the red. Oil & gas and realty stocks declined sharply.
As per provisional data, foreign funds today, 20 June 2008, sold shares worth a net Rs 999.31 crore. Domestic funds bought shares worth a net Rs 563.86 crore.
The 30-share BSE Sensex slumped 516.70 points or 3.42% at 14,571.29, its lowest closing since late August 2007. The index shed 568.72 points at the day’s low of 14,519.27 hit at the fag end of the trading session today. The Sensex gained 114.02 points at the day’s high of 15,202.01, hit at the onset of trading session.
The broader based S&P CNX Nifty was down 157.70 points or 3.48% at 4347.55, its lowest closing level since August 2007. Nifty June 2008 futures were at 4343, a discount of 4.55 points compared with the spot closing. NSE's futures & options (F&O) segment turnover was Rs 58533.66 crore, which was higher than Rs 42696.18 crore on Thursday, 19 June 2008.
The Sensex is down 6635.48 points or 31.28% from a record high of 21206.77 it hit on 10 January 2008. It is down 5715.70 points or 28.17% in calendar year 2008 so far.
The market breadth was poor on BSE with 450 shares advancing as compared to 2247 that declined. 43 remained unchanged.
The BSE Mid-Cap index outperformed the Sensex, falling 3.17% to 6,032.43. The BSE Small-Cap index underperformed the Sensex, sliding 3.43% at 7,397.66.
India’s second largest cellular service provider by sales Reliance Communication (RCom) slipped 6.65% at Rs 491.30. South African mobile giant MTN remained silent on its talks with the company at its annual general meeting (AGM) in Johannesburg on Thursday, 19 June 2008. The AGM was expected to discuss RCom merger deal especially in the back drop of the Reliance Industries’ claims over first right of refusal for a controlling stake in RCom.
India's largest aluminium producer by sales Hindalco Industries slipped 6.37% at Rs 161 after its board approved raising up to Rs 5000 crore by way of a rights issue to redeem a bridge loan it had taken for acquisition of Novelis Inc.
The other major losers from the Sensex pack were, Jaiprakash Associates (down 6.03% at Rs 166.60), Reliance Infrastructure (down 4.92% at Rs 962.55), Bharti Airtel (down 4.76% at Rs 766.40) and Tata Steel (down 4.66% at Rs 777.60).
India's top state-run oil explorer by market capitalisation ONGC rose 1.56% at Rs 866.85. It was the only gainers from the Sensex pack.
The BSE Oil & gas index underperformed the Sensex, sliding 5.03% to 9,419.89. Reliance Natural Resources (down 7.27% at Rs 82.95), Essar Oil (down 6.62% at Rs 225.80), and Cairn India (down 5.69% at Rs 267.60), slumped.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries lost 6.61% at Rs 2096.60. RIL has a highest weightage of 15.80% in Sensex.
Stocks of the interest rate sensitive sectors such as automobiles, realty and banking dropped after the inflation data. Bank of India (down 7.36% at Rs 247.90), State Bank of India (down 4.11% at Rs 1,247.50), and HDFC Bank (down 1.93% at Rs 1,099), were the key losers from the banking space. The BSE Bankex outperformed the Sensex, falling 2.97% to 6,804.78.
India's largest private sector bank by assets ICICI Bank lost 2.48% at Rs 734.65. ICICI Bank has a third highest weightage of 8.11% in BSE Sensex.
The BSE Realty index underperformed the Sensex, falling 4.45% at 5,383.81. Housing Development & Infrastructure (down 9.17% at Rs 528.15), Sobha Developers (down 6.66% at Rs 360.95), Indiabulls Real Estate (down 5.91% at Rs 354.05), Unitech (down 2.12% at Rs 184.60) and DLF (down 4.57% at Rs 456.35), tumbled.
Realty developer Parsvnath Developers lost 6.28% to Rs 152.10 after the company reported 17% fall in net profit to Rs 108.87 crore in Q4 March 2008 over Q4 March 2007.
Automobile sector stocks lost steam fearing that a tight monetary policy may compel banks to raise lending rates which in turn would hurt demand for automobiles. TVs Motor Company (down 5.19% at Rs 32.85), Hero Honda Motors (down 4.01% at Rs 759), Tata Motors (down 2.82% at Rs 488.85), Maruti Suzuki (down 2.51% at Rs 727.80) and Mahindra & Mahindra (down 0.22% at Rs 575.20), declined.
India’s second largest software exporter by sales Infosys Technologies shed 1.74% at Rs 1827.60. Infosys has a second highest weightage of 8.76% in BSE Sensex.
Sundaram Clayton, which resumed trading today on BSE, fell 57.92% at Rs 282.55. It opened at Rs 324 and touched a high of Rs 397.80 in early trade.
Reliance Industries clocked the highest turnover of Rs 387.31 crore on BSE. Anu's Laboratories (Rs 263.72 crore), Niraj Cement Structurals (Rs 233.67 crore), Reliance Capital (Rs 233.25 crore) and Reliance Petroleum (Rs 201.16 crore), were the other turnover toppers on BSE in that order.
Reliance Natural Resources reported a highest volume of 1.32 crore shares on BSE. IFCI (1.27 crore shares), Niraj Cement Structurals (1.16 crore shares), Reliance Petroleum (1.15 crore shares) and Chambal Fertilizers & Chemicals (1.07 crore shares), were the other volume toppers on BSE in that order.
European markets were trading lower. Key indices in UK, Germany and France were down by 1.07% to 1.43%. Some of the indices were trading in positive terrain earlier.
Asian stocks were mixed today. The key benchmark indices in Hong Kong, China and Singapore were up by between 0.31% to 3.01%. Key benchmark indices in Japan, Taiwan and South Korea were down by between 0.23% to 1.81%.
US stocks rose Thursday, 19 June 2008, as a drop in oil prices fueled investor optimism about consumer spending, driving shares of transportation and retailers sharply higher. The Dow Jones Industrial Average gained 34.03 points or 0.28% to 12,063.09. The tech-laden Nasdaq Composite Index rose 32.35 points or 1.33% to 2,462.06.
US crude for July delivery settled down $4.75, or 3.48%, at $131.93 per barrel on the New York Mercantile Exchange on Thursday. It lost further to $131.71 today as China's surprise move to increase fuel prices sparked worries about a curb in demand from the world's second largest consumer.
The sharp fall in oil price came just days before an emergency meeting on Sunday, 22 June 2008, in Saudi Arabia between oil consumers and producers to discuss rising oil prices. Saudi Arabia, the world's top oil exporter, is hiking output to help bring down prices, which have jumped nearly 40% this year and caused protests around the globe.
Market may remain volatile
The market may exhibit a cautious trend as US indices closed on a firm note yesterday and Asian indices are exhibiting mixed trends in the morning trades. Although the bias remains positive, yet investors should maintain caution as profit taking at higher levels may pull down the market. The market is likely to remain under pressure on account of unwinding of positions ahead of the June series derivative contracts. Among the local indices, the Nifty could test 4460 and 4410 on the downside while on the upper side it may move up to 4540. The Sensex has a likely support at 15000 and may face resistance at 15225.
US indices advanced on Thursday with the Dow Jones gaining 34 points to close at 12063 and the Nasdaq rising by 32 points at 2462.
Indian ADRs had a mixed outing on US bourses. Dr Reddy's lost 2.55% followed by ICICI Bank and Patni Computers with a loss of 2% each. Tata Motors, Rediff and HDFC Bank shed around 1% each. However, MTNL gained 3.59%; Infosys, Satyam and Wipro all gained above 2% each and VSNL moved up marginally.
In the crude oil front, the Nymex light crude oil for July series lost sharply by $4.75 to close at $131.93 per barrel. The bullion Comex gold for August delivery gained $10.70 to settle at $904.20 a troy ounce.
Pre Session Commentary - June 20 2008
The Indian Market is expected to have positive opening on the back of favourable global cues as the US market closed in green and Asian markets are trading mixed. On Thursday, the Indian market closed with heavy loses pressurized by sales across the ground. It was a difficult day for the domestic market as it hanged around extremely negative zone after negative start due to weak global cues. It was in bad mood through out the trading session. Nuke Deal and inflation worries also caused distress for the market as political uncertainty occurred after CPM threatened the UPA to withdraw its support if government moves forward with the deal. From the sectoral front, all indices closed in red and capital goods, bank and reality stocks faced most of the negative sentiment. The BSE Sensex closed lower by 334.32 points at 15,087.99 and NSE Nifty ended down by 78.15 points at 4,504.25. We expect that market may remain volatile during the trading session and inflation data to be released today will give further direction to the market
US markets closed higher on Thursday baked by lower oil prices that offset a warning of further write-downs from Citigroup. Crude oil futures fell $4.75 at $131.93 per barrel on the New York Mercantile Exchange after China disclosed plans to raise prices for gasoline and diesel fuel by 16% and 18%.
The Dow Jones Industrial Average (DJIA) closed higher by 34.03 points at 12,063.09 along with NASDAQ up by 32.35 points to close at 2,462.06 and S&P 500 advanced by 5.02 points to close at 1,360.03.
Indian ADRs ended mixed. In technology sector, Wipro went up by (2.90%) along with Satyam by (2.29%) and Infosys by (2.05%) while Patni Computers dropped by (2.28%). In banking sector, ICICI bank and HDFC bank decreased by (2.01%) and (0.78%) respectively. In telecommunication sector, MTNL and Tata Communication advanced by (3.59%) and (0.70%). Sterlite industries declined (0.85%).
Today the major stock markets in Asia are trading mixed. Hang Seng index is trading higher by 387.83 points at 23,185.44 while Japan’s Nikkei trading down by 132.74 points at 13,997.43 and Taiwan Weighted trading flat at 8,047.51.
The FIIs on Thursday stood as net seller in equity. The gross equity purchased was Rs2,469.90 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,919.70 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs449.80) Crore and net debt was Rs0.00 Crore.
Today, Nifty has support at 4,416 and resistance at 4,573 and BSE Sensex has support at 14,799 and resistance at 15,370
Market may recover
The market may recover after last two days’ steep fall tracking overnight recovery in US stocks and sharp fall in global crude oil prices. However, sustained selling by foreign funds, political uncertainty and expectation of a surge in inflation will cap upside.
The government will today release inflation data for the year through 7 June 2008. Market men expectation inflation to rise to about 10% in the year through 7 June 2008 as the data will capture effect of a rise in retail fuel prices announced by the Union government on 4 June 2008. Inflation based on the wholesale price index rose 8.75% in the 12 months to 31 May 2008, the highest reading in more than seven year.
The market’s concerns are that the Reserve Bank of India (RBI) may further tighten the monetary policy to rein in inflation
Foreign funds have pressed heavy sales of Indian stocks this month. As per provisional data, they sold shares worth a net Rs 598.36 crore yesterday, 19 June 2008. Their outflow totaled Rs Rs 7125.20 crore this month, till 18 June 2008.
Sensex lost 608.91 points or 3.87% to 15,087.99 on 19 June 2008 from 15,696.90 on 17 June 2008 due to weak global markets and due to political uncertainty. As per reports, CPM, a key left party, may be working on a plan to pull out support to the Congress-led UPA government at the Centre. Left parties have threatened to pull support to the government if it took further steps on the Indo-US nuclear deal. Left parties are opposing the agreement, saying it undermines India's independent foreign policy and nuclear weapons program.
US stocks rose Thursday, 19 June 2008, as a drop in oil prices fueled investor optimism about consumer spending, driving shares of transportation and retailers sharply higher. The Dow Jones Industrial Average gained 34.03 points or 0.28% to 12,063.09. The tech-laden Nasdaq Composite Index rose 32.35 points or 1.33% to 2,462.06.
US crude for July delivery settled down $4.75, or 3.48%, at $131.93 per barrel on the New York Mercantile Exchange on Thursday. It lost further to $131.71 today as China's surprise move to increase fuel prices sparked worries about a curb in demand from the world's second largest consumer.
Morning Call - June 20 2008
Market Grape Wine :
In House :
Nifty at a support of 4480 & 4436 levels with resistance at 4540 & 4580 levels .
Buy : in F&O Cairns : above 278 target 290 s/l of 272
Buy : in F&O AxisBank : above 707 target 735 s/l of 695
Buy : Auropharma above 327 target 337 s/l of 322
Buy : RComm above 526 target 538 s/l of 521
Out House :
Markets at a support of 14786 & 14747 resistance at 15234 & 15424 levels .
Inflation expected to be 9.88 to 10.04 .
Buy : Tisco & JindalSaw
Buy : Luoin & Glenmark at dips
Buy : Infy & Satyam
Buy : EIH & emami
Buy : HP & IOC
Buy : RPL
Buy : LT & SKumar
Buy : Aban & Geshipping
Dark Horse : Tisco , RPL , Aban , INFY , RIL & Wipro
TGIF : Thank God Its Friday : Markets to be choppy and volatile maintain strict stop loss for your trades .
Trading Calls - June 20 2008
Nifty (4504) Sup 4450 Res 4580
Buy Tata Chem (364) SL 359 Target 374, 378
Buy Patel Eng (416) SL 411 Target 426, 430
Buy Cairn (284) SL 279
Target 294, 298
Sell PNB (435) SL 440
Target 425, 422
Sell Cummins India (266) SL 270 Target 256, 252
Inflation to fuel proceedings
Desire is a bonfire that burns with greater fury, asking for more fuel….
Inflation will yet again play a crucial role today as the Government will release the numbers for the week ended June 7. For the day market guesstimates are anything between 9.8% and 10.2%.
What's good for the bulls is that the scene across global markets is not too bad. Oil prices have cooled off after China announced a hike in fuel prices. US shares closed up, though the worries over its economic health and the troubled financial sector remain. Asian markets, barring that of Japan, are mostly up this morning, with Hang Seng and Shanghai leading from the front. This may result in a positive opening, though the undertone will be jittery ahead of the release of inflation data.
After dithering for several weeks, the Centre had finally hiked fuel prices on June 4. It has also slashed duties on crude and petro products to partly cushion the economy from higher fuel prices. Ever since then, there has been speculation (and fear to some extent) that inflation will touch double-digit mark soon. It may happen when the data is released at noon.
If not today, inflation is likely to cross 10% in the next few weeks due to the cascading effect of higher fuel prices. The market and most players have been bracing for this. So, the event, whenever it happens, could draw only a temporary reaction (or over-reaction).
Anxiety over the latest slugfest between the Government and the Left may also have some bearing. In short, the market remains at the mercy of day-to-day news and any rally could vanish in a jiffy with the next bad news. We expect the market to remain choppy and rangebound.
FIIs were net sellers of Rs5.98bn (provisional) in the cash segment on Thursday while the local institutions poured in Rs1.4bn. In the F&O segment, foreign funds were net sellers of Rs10.86bn. On Wednesday, FIIs were net sellers of Rs4.5bn in the cash segment. With this, they have pulled out over $5.5bn from the Indian market this year.
Results Today: Abbott India, Dredging Corp., EIH, Essar Shipping, Hindalco, Nectar Lifescience, Onward Tech and Parsvnath.
Asian stocks are mostly higher, except for Japan. Weakness in energy stocks offset gains in airlines and refiners after crude oil fell the most in almost three months.
The MSCI Asia Pacific Index lost 0.5% to 140.57 as of 11 a.m. in Tokyo, leaving it little changed this week. Almost five stocks declined for every three that gained. Japan's Nikkei 225 Stock Average dropped 0.9% to 13,999.06.
Woodside Petroleum fell for the first time in four days. Korean Air Lines and Singapore Airlines rallied. China Petroleum jumped in Shanghai after China said it will raise transport fuel prices for the first time in 7 1/2 months.
US stocks closed higher, led by strength in the technology space, but the advance in blue-chip indices was capped by a Citigroup warning that it saw substantial additional writedowns going ahead.
Crude oil prices fell by nearly $5 per barrel on the back of China's move to increase fuel prices by up to 18%. Technology shares rallied on forecasts for higher earnings at Broadcom Corp.
The S&P 500 added 5 points, or 0.4%, to 1,342.83. After dipping below 12,000 for a second day, the Dow Jones Industrial Average rose 34 points, or 0.3%, to 12,063.09. The Nasdaq Composite Index jumped 32 points, or 1.3%, to 2,462.07.
Market breadth was mixed. More than three stocks rose for every two that fell on the New York Stock Exchange.
US light crude oil for July delivery fell $4.75 to settle at $131.93 a barrel on the New York Mercantile Exchange after China said it will lift fuel subsidies on gas and diesel - a move that could curb demand in the country and lower prices globally.
The market extended gains after regional bank BB&T said it expects to increase its dividend this year, countering speculation of a reduction in payout. Broadcom rallied the most since April after Lehman Brothers said the maker of computer chips is poised for steadier profit growth.
Ryder Systems and Southwest Airlines led nine of ten transportation companies in the S &P 500 Index higher as crude oil slid.
AIG gained 4.9% after Citigroup the insurance giant and Dow component to a buy. Citigroup shares came under pressure after its CFO told a conference call that the bank is likely to take substantial additional markdowns if current trends prevail.
The troubled financial sector was also affected by reports of possible criminal charges against two former managers of two Bear Stearns hedge funds that collapsed last year. Two ex-Bear Stearns hedge fund managers in question surrendered to authorities.
The Philadelphia Fed index, a regional reading on manufacturing, weakened to minus 17.1 in June from minus 15.6 in May, a bigger drop than what economists had expected. It was the index's seventh straight monthly decline.
The number of Americans filing new claims for unemployment fell modestly by 5,000 last week to 381,000, but stayed at levels that continued to reflect a struggling economy. The Conference Board's index of leading economic indicators rose 0.1% in May, as it did in April. Economists had expect LEI to remain unchanged.
The national average price for a gallon of regular unleaded gas eased to $4.073 from $4.075 the previous day, according to AAA. COMEX gold for August delivery rose $10.70 to settle at $904.20 an ounce. In currency trading, the dollar rose versus the euro and the yen.
In the bond market, Treasury prices fell, raising the yield on the benchmark 10-year note to 4.21% from 4.13% late on Wednesday.
There are no market-moving earnings or economic news tomorrow. Friday brings the quadruple options expiration Friday, a quarterly event in which stock futures and options and stock index futures and options all expire simultaneously. This can sometimes add volatility to the underlying stocks.
Stocks in Europe ended mostly lower. The pan-European Dow Jones Stoxx 600 index ended down 0.5% at 300.24. The index came close to falling below the 300 level for the first time since late March.
Despite early gains from far stronger-than-forecast retail sales, the UK's FTSE 100 ended 0.8% lower to 5,708.40. The French CAC-40 dropped 0.6% to 4,591.39 and Germany's DAX 30 dipped modestly, losing 0.1% to 6,721.17.
In the emerging markets, the Bovespa in Brazil was down 0.75% at 66,590 while the IPC index in Mexico rose 0.8% at 29,847. The RTS index in Russia dipped by 0.08% to 2400 and the ISE National-30 index in Turkey dropped 0.4% to 46,104.
All eyes on Inflation
Markets ended in negative terrain for second consecutive trading session. Weak global cues coupled with unabated selling in scrips across the sectors dragged the Nifty to slips below the 4,500mark to hit a low of 4,488. The benchmark Sensex also fell below the 15,100 level to hit a low of 15,051 during the day.
Among the 30-scrips of Sensex, 27 stocks ended in negative terrain and only 3 stocks ended in green. Finally, the BSE benchmark Sensex lost 334 points to close at 15,087 and the Nifty index was down 78 points to close at 4,504.
MTNL gained 1% to Rs97 after reports stated that the company received the international long distance license from DoT. The scrip touched an intra-day high of Rs99 and a low of Rs95 and recorded volumes of over 5,00,000 shares on NSE.
Zee Entertainment ended flat at Rs243. Reports that the company may list its two divisions Zee Motion Pictures and Zee Limelight on the London Stock Exchange’s AIM. The scrip touched an intra-day high of Rs247 and a low of Rs237 and recorded volumes of over 3,00,000 shares on NSE.
Tata Comm end lower by 3% to Rs408. According to reports, a wholly owned subsidiary of Tata Communications Limited has signed an equity JV with China Enterprise Communications (CEC) for the acquisition of 50% equity in CEC, a value-added telecommunications services and integrated IT solutions provider. The scrip touched an intra-day high of Rs420 and a low of Rs401 and recorded volumes of over 64,000 shares on NSE.
BOC India was frozen at 20% upper circuit to Rs196.65 after the company founder offered to pay 21% more for shares held by other investors. The Indian unit of the U.K.'s BOC Group Plc raised the open-offer price to Rs200 per share, from an initial price of Rs165, according to reports The scrip touched an intra-day high of Rs196 and a low of Rs190 and recorded volumes of over 16,00,000 shares on NSE.
Time Techno advanced 1.2% to Rs780 after the company announced that its board of directors of the company would meet on June 27 to consider stock split. The scrip touched an intra-day high of Rs845 and a low of Rs765 and recorded volumes of over 23,000 shares on NSE.
MindTree ended lower by 2.7% to Rs455. The company announced that it today opened its own development center, MindTree Coromandel, in Chennai. The center was inaugurated by U.S. Consul General in Chennai, David T. Hopper.
MindTree Coromandel, named after the famous coastline of India, has been built by Ascendas Mahindra IT Park Pvt Ltd. Situated in the pristine and upcoming Mahindra World City SEZ in the city suburb, MindTree Coromandel has the capacity to seat 2,800 MindTree Minds. The interiors of the center have been designed and executed by Chandavarkar and Thacker Architects Pvt. Ltd. The scrip touched an intra-day high of Rs474 and a low of Rs451 and recorded volumes of over 10,000 shares on NSE.
Union Bank of India slipped by 2% to Rs129. There were reports stating that it would raise US$2bn through medium term debt from international market for its overseas expansion. The scrip touched an intra-day high of Rs131 and a low of Rs127 and recorded volumes of over 1,00,000 shares on NSE.
Vikas WSP slipped by a percent to Rs24.45. The company announced that it acquired agricultural land in the state of Rajasthan. The company purchased agricultural land measuring 2025 acres for raising certified organic crops like Guar to meet out the increased export demand of certified organic guar gum polymers mainly for the production of lactofermented foods, dairy and convenient food products and Wheat to manufacture pregelatinized certified organic wheat farina for export. The scrip touched an intra-day high of Rs24.95 and a low of Rs24.25 and recorded volumes of over 1,00,000 shares on NSE.
Roman Tarmat gained by 3% to Rs73 after the company announced that it secured orders worth Rs1.1bn from Tamil Nadu Infrastructure. The scrip touched an intra-day high of Rs74 and a low of Rs68 and recorded volumes of over 28,000 shares on NSE.
National Aluminum slipped by a percent to Rs459 after the company announced that they may have to shut plants as truck drivers strike has disturbed the supplies of coal to its plants. The scrip touched an intra-day high of Rs474 and a low of Rs456 and recorded volumes of over 81,00,000 shares on NSE.
GSS America fell by 2.5% to Rs311. The company clarified that acquisition of companies is one of the objects of the IPO of the company and the same has been mentioned in the column 'Objects of the Issue' in page 24 of the IPO Prospectus of the Company dated February 19, 2008. Since then the company is in the process of identifying the prospective companies for acquisition.
Company made this announcement with reference to the news item appearing in a leading web portal titled "GSS America plans to buy US Company for $ 130 MN in 1-2 months". The scrip touched an intra-day high of Rs333 and a low of Rs308 and recorded volumes of over 7,00,000 shares on NSE.
Corporate News
TCS to set-up separate business unit for BPO services. (ET)
DLF Mansear SEZ deal likely to called off. (ET)
Reliance Infra plans to invest US$7bn in next three years to expand its engineering construction business. (DNA)
MTN board avoids discussion on Rcom during the AGM. (BL)
IVRCL Infra close to acquiring Swedish construction equipment manufacturer for US$100mn. (DNA)
HDFC to raise funds for buying stake in HDFC Bank by listing its two arms. (ET)
PFC sanction’s Rs100bn loan to NTPC. (ET)
GE Shipping to invest Rs30mn in fleet expansion over three years. (ET)
Bank of Baroda signs pact with BSE for acting as a clearing and settlement bank for the exchange. (ET)
Bata India to open 240 outlets in next three years for a total capex of Rs4.8bn. (ET)
Radico Khaitan to set-up distillery in Maharashtra. (ET)
Supreme Infra to expand its ready mix concrete business by adding two more units. (ET)
Essar Steel looks to acquire Bulgaria’s based Kremikovtzi AD. (DNA)
Nalco may shut plans due to shortage of coal. (DNA)
ICRA acquire kolkatta based Axiom Technologies. (DNA)
Neyveli Lignite plans to add 750MW power capacity and 6.6mtpa of lignite mining by Sep’09 for an investment of Rs66.3bn. (DNA)
Jet Airways to hike basic fare by 10%. (BS)
Ess Dee Aluminium wins regulatory approval to bail-out India foils. (BS)
Ashok Leyland set’s up new facility for development of friendly diesel engines. (BS)
Bata India sold off its Hawai brand to Brazilian company , Alpragatas for ~Rs39mn. (BS)
ITC wholly owned subsidiary, ITC Info eyeing an acquisition with strong presence in US and Europe. (BS)
TNPL to spend Rs10bn to boost capacity. (BS)
NIIT to set-up training hub in china. (BS)
HPCL to acquire four sugar mills in Andhra Pradesh. (BS)
Gitanjali Gems acquire entire equity holding in CRIA Jewellery. (BL)
Roman Tarmat secures order worth Rs1.6bn from Tamil Nadu Road Infrastructure Development Company. (BL)
Corus to hike flat product prices by pound 200 per ton from June 30. (BL)
Bartronics US arm secures pilot project from Comic-con International. (BL)
Titagarh Wagons acquires 50% stake in Delhi based brake system unit for Rs75mn. (BL)
Punj Lloyd enters into agreement with Shyam group to divest interest in its internet service provider division. (FE)
Economic News
RBI decides to defer issuance of credit derivatives guidelines. (ET)
Securitised debt instrument to soon get listed on stock exchange. (ET)
TRAI recommends an open bidding process to acquire license for national integrated directory enquiry service. (ET)
CBDT raises tax collection estimates by Rs300bn for the current fiscal. (ET)
Monsoon 45% above normal Indian Metrological Department. (DNA)
Airlines to increase basic fares anywhere between 5-20% from today. (BS)
Power and Steel ministry seeks priority based gas allocation. (FE)
Technology sector helps US Market to register gains
After staying in red for first half, indices creep in the green buoyed by technology and financial stocks
After a volatile day of trading, US Market ended the day with modest gains today, Thursday, 19 June, 2008 mainly with the help of technology stocks. Crude prices slipping down by almost 4% also added to the positive momentum. But gains were restricted due to weakness in the financial sector where Citigroup announced that it might go for some more write downs in the coming quarter. But a reversal in the financial sector late in the day, also aided in market’s course reversal.
The Dow Jones industrial Average traded in red for the entire first half today. It then slipped in the green in the post lunch hours, manly after crude prices slipped. Going into close, the index ended the day with a gain of 34 points at 12,063. The Nasdaq Composite Index, finished higher by 32.3 points at 2,462.07. S&P 500 finished higher by 5 points at 1,342.
The day started on a rather choppy as disconcerting comments from the financial sector and mixed economic data have taken the focus away from lower oil prices.
Earlier in the day, financial giant Citigoup stated it will continue to have substantial marks on subprime exposure this quarter and a monoline adjustment could be on par with that of last quarter. The same started taking a toll on the financial sector.
In terms of economic data, initial jobless claims for the week ending 14 June totaled 381,000, down 5,000 from the prior week, but above the 375,000 claims that were expected. Notably, continuing claims through totaled 3.06 million, which is down from the previous tally of 3.14 million.
The Philadelphia Fed Index for June, a regional assessment of manufacturing activity, came in at -17.1, which was worse than the reading of -10 that market was expecting. Also, a reading of leading economic indicators for May climbed 0.1%, matching the prior month's reading and exceeding the consensus prediction, which called for a flat reading.
In the technology sector, large-cap tech stocks like Microsoft and Intel helped lead the way.
Crude prices acted in a volatile manner throughout the day today. Crude-oil futures closed with a loss of almost $5 a barrel after China raised its fuel prices, sparking concerns about a slowdown in demand. Oil prices climbed earlier on news that a Royal Dutch Shell oil platform off the coast of Nigeria was shut down after an attack by local militants but then slipped again but ended considerably lower for the day.
Crude-oil futures for light sweet crude for July delivery today closed at $131.93/barrel (lower by $4.75/barrel or 3.5%) on the New York Mercantile Exchange. Prices on Nymex climbed as high as $137.35 earlier on the heels of a shutdown of an oil platform in Nigeria. Prices are 91% higher than a year ago.
It was reported today that China, the second-biggest fuel consumer after the U.S., will increase gasoline and diesel prices by as much as 18%. It was also reported today that Saudi Arabia plans to increase crude-oil production by 200,000 barrels a day.
There is not much scheduled Friday, with only one company reporting earnings, no economic reports and no Fed speakers.
Today's Pick - Dr Reddy's Labs
We recommend a sell in Dr Reddys Laboratories from a short-term perspective. The stock has been on a medium-term uptrend since its February 2008 low of Rs 501. However, the stock met with a significant resistance at Rs 720 level in early June and gradually began to move sideways.
The medium-term uptrend of the stock began to lose its momentum. Subsequently, the stock reversed direction and started to decline, backed by the negative divergence in the weekly momentum indicator.
The daily and weekly momentum indicators have entered the neutral region from the bullish zone. The stock breached the 21-day moving average by declining on June 19, indicating bearishness.
We also notice that the daily MACD (moving average convergence and divergence) is displaying negative divergence, supporting our bearish stance. We are negative on the stock in the short-term.
We expect the stock to decline until it hits our price target of Rs 610 in the forthcoming trading sessions. Traders with short-term perspective can sell the stock, while maintaining stop-loss at Rs 712.
via BL
Gold rises to highest level in three weeks
Precious metal production data perks up their prices
Gold prices ended considerably higher on Thursday, 19 June, 2008. Prices rose to highest level in almost three weeks after concerns over global economies and a decline in South African gold production lifted prices for the precious metal past $900 an ounce. Silver prices also rose today.
It was reported today that South African gold output in April fell more than 10% in volume terms, compared with a year earlier.
Comex Gold for August delivery rose $10.7 (1.2%) to close at $904.2 ounce on the New York Mercantile Exchange. Earlier during the day, it touched a high of $910.5. 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 8% till date against a 5% 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 Wednesday, Comex silver futures for July delivery rose 13 cents (0.7%) to $17.47 an ounce. For this week, silver has gained 3.2%. Silver has gained 16.7% 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 Thursday, the dollar was mixed after a report showed that U.S. weekly jobless claims fell to a two-week low. The dollar was little changed against a weighted basket of the euro, yen and four other major currencies after declining in the previous three sessions.
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.
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.
In the crude market today, crude-oil futures closed with a loss of almost $5 a barrel after China raised its fuel prices, sparking concerns about a slowdown in demand. Oil prices climbed earlier on news that a Royal Dutch Shell oil platform off the coast of Nigeria was shut down after an attack by local militants but then slipped again and ended considerably lower for the day.
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 121 (0.97%) at Rs 12,510 per 10 grams. Prices rose to a high of Rs 12,610 per 10 grams and fell to a low of Rs 12,332 per 10 grams during the day’s trading.
At the MCX, silver prices for July delivery closed Rs 109 (0.44%) higher at Rs 24,504/Kg. Prices opened at Rs 24,385/kg and rose to a high of Rs 24,909/Kg during the day’s trading.
Volatile crude ends substantially lower
Prices give up earlier gains as China raises its fuel prices questioning demand growth
Crude prices acted in a volatile manner throughout the day today, Thursday, 19 June, 2008. Crude-oil futures closed with a loss of almost $5 a barrel after China raised its fuel prices, sparking concerns about a slowdown in demand. Oil prices climbed earlier on news that a Royal Dutch Shell oil platform off the coast of Nigeria was shut down after an attack by local militants but then slipped again but ended considerably lower for the day.
Crude-oil futures for light sweet crude for July delivery today closed at $131.93/barrel (lower by $4.75/barrel or 3.5%) on the New York Mercantile Exchange. Prices on Nymex climbed as high as $137.35 earlier on the heels of a shutdown of an oil platform in Nigeria. Prices are 91% higher than a year ago. Last week, crude prices closed lower by 2.7%. For the year, crude is up by 35% till date.
It was reported today that China, the second-biggest fuel consumer after the U.S., will increase gasoline and diesel prices by as much as 18%. It was also reported today that Saudi Arabia plans to increase crude-oil production by 200,000 barrels a day.
Yesterday, EIA reported that crude inventories have now fallen 24.8 million barrels in the past five weeks. Crude supplies dropped by 1.2 million barrels to 301 million for the week ended 13 June. Refinery utilization climbed to 89.3% compared with 88.6% of capacity a week earlier.
EIA also reported that demand for motor gasoline was down 1.8% over the past four weeks, compared to the same period a year ago. It stood at an average of about 9.3 million barrels per day. Motor gasoline supplies fell 1.2 million barrels to 208.9 million barrels for the week ended 13 June. Distillate stocks were up 2.6 million barrels at 116.6 million barrels.
Natural gas in New York declined after an Energy Department report showed that U.S. inventories advanced 57 billion cubic feet to 1.943 trillion cubic feet last week. Natural gas for July delivery fell 34.9 cents (2.6%) to settle at $12.861 per million British thermal units in New York.
Against this backdrop, gasoline for July delivery fell 11.41 cents (3.3%) to settle at $3.3526 a gallon in New York. Heating oil for July delivery dropped 14.65 cents (3.8%) to close at $3.7135 a gallon in New York.
Brent crude oil for June settlement today fell $4.44 (3.3%) to $132 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.
At the MCX, crude oil for July delivery closed at Rs 5,735/barrel, lower by Rs 79 (1.3%) against previous day’s close. Natural gas for June delivery closed at Rs 555.1/mmbtu, lower by Rs 11.8/mmbtu (2.1%).
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