NSE Bulk Deals to Watch - June 23 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
23-JUN-2008,MAXWELL,Maxwell Industries Ltd.,SUNIL JAYKUMAR PATHARE,BUY,504050,15.30,-
23-JUN-2008,MONNETISPA,Monnet Ispat Ltd,RELIANCE CAPITAL MUTUAL FUND A/C RELIANCE NATURAL RESOURCES,BUY,750000,540.00,-
23-JUN-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,BUY,2506668,40.70,-
23-JUN-2008,RBL,Rane Brake Lining Limited,TRANSGLOBAL SECURITIES LTD.,BUY,43722,78.21,-
23-JUN-2008,AMTEKAUTO,AmtekAuto-Roll Sett,CLSA (MAURITIUS) LIMITED,SELL,818727,241.37,-
23-JUN-2008,MAXWELL,Maxwell Industries Ltd.,PRASHANT JAIPAL REDDY,SELL,504050,15.30,-
23-JUN-2008,MONNETISPA,Monnet Ispat Ltd,CITICORP INTL FINANCE CORPORATION,SELL,750000,540.00,-
23-JUN-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,SELL,2506668,40.71,-
23-JUN-2008,NAGARFERT,Nagarjuna Fert & Chem,NEW VERNON INDIA LIMITED,SELL,2353400,40.47,-
23-JUN-2008,RBL,Rane Brake Lining Limited,TRANSGLOBAL SECURITIES LTD.,SELL,43722,77.51,-

BSE Bulk Deals to Watch - June 23 2008

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
23/6/2008 532981 ANU LABS PRABHUDAS LILLADHER PVT. LTD. B 100944 389.14
23/6/2008 532981 ANU LABS MANISH SARVAIYA B 121709 394.56
23/6/2008 532981 ANU LABS PRABHUDAS LILLADHER PVT. LTD. S 100944 389.46
23/6/2008 532981 ANU LABS MANISH SARVAIYA S 121709 394.44
23/6/2008 505036 AUTOMO COR G TATA MOTORS LTD B 113700 225.00
23/6/2008 505036 AUTOMO COR G BIRLA SUNLIFE TRUSTEE CO PVT LTD AC BIRLA EQUITY PLAN S 65011 225.00
23/6/2008 590061 BRUSHMAN IND PACIFIC CORPORATE SERVICES LIMITED B 500000 116.36
23/6/2008 590061 BRUSHMAN IND PRAGYA MERCANTILE PVT LTD S 315000 116.27
23/6/2008 590061 BRUSHMAN IND JRK CONSULTANTS PVT LTD S 145000 116.50
23/6/2008 531932 C G IMPEX PRAFULLABEN AMRUTBHAI SONI B 43338 12.61
23/6/2008 507910 FIBERWB IN KANUBHAI MANILAL PATEL S 61844 9.77
23/6/2008 530389 GEEFCEE FINA BHAVANI PORTFOLIO PRIVATE LIMI S 69831 173.47
23/6/2008 531863 GEEKAY FINAN LOTUS GLOBAL INVESTMENTS LIMITED B 51000 64.30
23/6/2008 531439 GOLDSTON TEC MASUMI OVERSEAS PRIVATE LIMITED B 98000 233.03
23/6/2008 513337 GUJ.TOOLROOM DEVANG J GADOYA B 400000 8.15
23/6/2008 513337 GUJ.TOOLROOM SAURABH N KINARIWALA S 111900 8.15
23/6/2008 513337 GUJ.TOOLROOM SHREYA S KINARIWALA S 119500 8.15
23/6/2008 513337 GUJ.TOOLROOM MONA N KINARIWALA S 168600 8.15
23/6/2008 505840 JAIPAN INDUS GLOBAL FILM AND BORD CASTING L B 31595 36.43
23/6/2008 532605 JBM AUTO PASHA FINANCE PVT. LTD. S 90000 38.50
23/6/2008 512047 NATRAJ FIN NAMDEO H MORE S 28400 55.00
23/6/2008 532986 NIRAJ CEMENT BHAVARLAL BABULAL JAIN B 491169 193.43
23/6/2008 532986 NIRAJ CEMENT AYODHYPATI INVESTMENT PVT LTD B 705493 192.80
23/6/2008 532986 NIRAJ CEMENT AMRUT SECURITIES LTD B 53420 188.00
23/6/2008 532986 NIRAJ CEMENT HARSHAD B PATEL B 78997 191.42
23/6/2008 532986 NIRAJ CEMENT PRABHUDAS LILLADHER PVT. LTD. B 65012 193.12
23/6/2008 532986 NIRAJ CEMENT N D NISSAR B 108309 192.02
23/6/2008 532986 NIRAJ CEMENT VEERAJ BHABHLUBHAI WALA B 70100 192.04
23/6/2008 532986 NIRAJ CEMENT HEMANT MADHUSUDAN SHETH B 92500 185.50
23/6/2008 532986 NIRAJ CEMENT AYODHYPATI INVESTMENT PVT LTD S 735493 192.90
23/6/2008 532986 NIRAJ CEMENT AMRUT SECURITIES LTD S 53420 190.90
23/6/2008 532986 NIRAJ CEMENT HARSHAD B PATEL S 78997 192.65
23/6/2008 532986 NIRAJ CEMENT PRABHUDAS LILLADHER PVT. LTD. S 65037 193.14
23/6/2008 532986 NIRAJ CEMENT N D NISSAR S 109309 192.07
23/6/2008 532986 NIRAJ CEMENT N.C.JAIN S 52120 190.07
23/6/2008 532986 NIRAJ CEMENT BHAVARLAL BABULAL JAIN S 492703 187.59
23/6/2008 527005 SHREE PACETR ARUNKUMAR BAHL S 38050 45.31

Post Session Commentary - June 23 2008

Indian market closed in red by extending its Friday’s losses due to sustained sales that was witnessed in key indices mainly metal and capital goods stocks, which ended with a cut of more than 4% and 5% respectively. The domestic market opened sharply lower on the back of weak global cues and observed heavy selling pressure since the initial bell. It remained under black clouds till the end of trading. Concerns of further tightening of monetary policy triggered the negative sentiments. The rising inflation concerns along with the chances of another hike in interest rate by RBI and political uncertainty also put some more pressures to the market. Heavy selling in capital goods, metal, power, realty, and oil stocks added pressure on the markets while IT stocks were on limelight as maintained to close on positive zone. The market breadth was extremely negative as 2,222 stocks closed in red and 425 stocks closed in green while 50 stocks remained unchanged.

The BSE Sensex closed lower by 277.97 points at 14,293.82 and NSE Nifty ended down by 81.15 points at 4,266.40. The BSE Mid Caps and Small Cap closed negative with fall of 217.20 points and 261.36 points 5,815.23 and 7,136.30 respectively. The BSE Mid Cap and BSE Small Cap ended with a deep cut of more than 3% each. The BSE Sensex touched intraday high 14,510.55 and intraday low of 14,163.45.

Lossers from the BSE are JP Associates (7.95%), Hindalco (7.83%), L&T Ltd (6.53%), Maruti Suzuki (5.43%), Ranbaxy Lab (5.38%), Reliance Infra (4.76%), M&M Ltd (4.55%), Tata Steel (4.12%) and Reliance (3.55%).

The Metal index closed lower by 671.73 points at 13,856.33. Lossers are Hindalco (7.83%), Hindustan Zinc (6.19%), Welspan Guj Sr (5.94%), Nalco (5.41%), Jindal Steel Ltd (5.36%), Steel Authority (4.57%), and Sterlite In (4.15%).

The Capital Goods index dropped by 602.78 points to close at 10,797.01. Major lossers are Alstom Proje. (8.65%), Punj Lloyd (6.86%), L&T Ltd (6.53%), Suzlon Energy (6.21%), Lakshmi Ma W (6.03%) and Elecon Eng C. (5.93%).

The Oil & Gas index closed down by 247.79 points at 9,172.10. As Essar Oil Ltd (7.51%), Aban Offshore (6.79%), Reliance Nat Res (4.22%), Reliance (3.55%), IOC (3.19%) and Reliance Pet (1.73%) closed in negative territory.

The Reality Index closed lower by 195.89 points at 5,187.92. Lossers are Akruti City (9.04%) along with Anant Raj (9.00%), Penl; Ltd (7.27%), Unitech Ltd (7.12%), Housing Dev (7.00%) and Ansal Infras (6.00%).

The Banking index closed down by 174.20 points at 6,630.58. Lossers are BOI (9.12%), Indian Overseas Bank (6.81%), Andhra Bank (6.65%), Allahabad Bank (6.61%), Karnataka Bank (6.14%), Federal Bank (6.02%) and Bank of Baroda (5.77%).

The IT index went up by 28.80 points to close at 4,233.42 as HCL Tech (1.63%), Wipro Ltd (1.14%), Patni Computer (1.12%), Infosys Tech (1.09%) and Satyam Computer(1.04%) closed in positive territory.

CG, metal and power stocks lead market slump

Continuing the bear trend, the market witnessed another round of frenzied selling with correction in the index heavyweights with the CG, metal and power stocks shaving off over 348 points during the intra-day trades. After resuming 148 points lower at 14,423, the market remained under the grip of sustained selling pressure. Extensive correction in heavyweight CG, metal, power and realty stocks dragged the index below the 14,200 mark to the day's low of 14,163. The Sensex finally ended the session at 14,293, down 278 points, while the Nifty shed 81 points to close at 4,266.

The breadth of the market was negative with 2,222 declines, 425 advances and 50 stocks ending unchanged. All the sectoral indices had a weak outing except the information technology (IT) stocks. The BSE CG index slipped sharply and dropped 5.29% followed by the BSE Metal index (down 4.62%), the BSE Power index (down 4.01%), the BSE Realty index (down 3.64%), the BSE Auto index (down 2.95%), BSE Oil & Gas index (down 2.63%), BSE Bankex index (down 2.56%), BSE PSU index (down 2.46%) and the BSE HC index (down 2.43%) etc.v Out of the 30 Sensex stocks, 24 stocks lost ground and 6 managed to end with steady gains. Among the major losers, JP Associates slumped 7.95% at Rs15.35, Hindalco plummeted 7.83% at Rs146.80, L&T tumbled 6.53% at Rs2,380, Maruti Suzuki India shed 5.43% at Rs2,682.05, Ranbaxy Laboratories crashed 5.38% at Rs509.50, Reliance Infrastructure dropped 4.76% at Rs906, Mahindra & Mahindra lost 4.55% at Rs546 and Tata Steel declined nearly 4.12% at Rs731.10. Reliance Industries, SBI, ACC, BHEL, DLF, ICICI Bank, ITC, Ambuja Cement, Grasim Industries, Bharti Airtel, Reliance Communications and Tata Consultanct Services fell over 0.60-2% each. However, ONGC gained 2.36% at Rs887.30, HDFC, Wipro, Infosys, Satyam Computer Services and Hindustan Unilever ended marginally higher around 1%.

CG stocks came under the grip of sharp hammering. Alstom Projects crumbled 8.65% at Rs372.15, Punj Lloyd slumped 6.86% at Rs225.55, Larsen & Toubro dropped 6.53% at Rs2,396.30 and Suzlon Energy declined by 6.21% at Rs228. Elecon Engineering, Crompton Greaves, Areva T&D India, Havells India, Jyoti Structure, SKF India, AIA engineer, and Praj Industries shed around 3-5% each.

Over 1.41 crore Reliance Petroleum shares changed hands on the BSE followed by Reliance Natural Resources (1.39 crore shares), IFCI (1.06 crore shares), Chambal Fertiliser (1.05 crore shares) and Ispat Industries (0.82 crore shares).

Sensex loses nearly 1500 pts in 4 days

Indian stocks suffered losses for the fourth straight session today to settle at 10-month low on sustained selling pressure throughout the day. Concerns of further policy tightening by the Reserve Bank of India with inflation reaching 13-year high early this month and political uncertainty, weighed on the market sentiment today. The Capital Goods index, BSE Power index, BSE Realty index, BSE Auto index, BSE Bankex, BSE PSU index touched 52-week lows. The market breadth was weak.

Shares from capital goods, banking, realty, metal and power sector suffered sharp losses. But ONGC gained ahead of its Q4 and year ended March 2008 results scheduled on 25 June 2008.

As per provisional data, foreign funds today, 23 June 2008, sold shares worth a net Rs 665.56 crore. Domestic funds bought shares worth a net Rs 91.75 crore.

RBI governor Y V Reddy today, 23 June 2008, said RBI will play its part in moderating and managing demand and may have to build on actions it has already taken. Reddy said the central bank was in the midst of an intensive examination of issues and options. He added that he does not see any adverse impact of inflation on growth as of now.

In an important political development during the weekend, Uttar Pradesh chief minister Mayawati’s Bahujan Samaj Party (BSP) withdrew its support to the Congress-led UPA government. Given its current strength of 17 members of parliament (MPs) in the Lok Sabha, the BSP's decision to withdraw its support is unlikely to upset the UPA government’s standing.

Meanwhile, the Samajwadi Party, at loggerheads with the BSP, is reportedly in talks with the Congress on extending its support to the Indo-US nuclear deal. The Samajwadi Party has 39 MPs in the Lok Sabha (including two dissidents).

The nuclear energy deal appears headed for an imminent showdown that threatens to trigger early elections, reports suggest. The UPA government may have only a week or so to make up its mind if the pact is to have any chance of final approval before US President George W. Bush leaves office, reports suggest.

The 30-share BSE Sensex lost 277.97 points or 1.91% at 14,293.32. It is the lowest closing level of Sensex in 10 months since late August 2007. Sensex lost 407.84 points at day’s low of 14,163.45 touched in mid-morning trade.

After opening 148.24 points lower at 15,423.05, the Sensex made a recovery attempt striking day’s high of 14,509.26 in early trade itself. At the day’s high Sensex lost 62.03 points.

The broader based S&P CNX Nifty was down 81.15 points or 1.87% to 4266.40. It is the lowest closing level of Nifty in nearly 10 months since late August 2007. Nifty June 2008 futures were at 4275.20 a premium of 8.8 points as compared to spot closing.

Volatility is expected to remain high in the near term as derivatives contracts for June series are set to expire on Thursday, 26 June 2008. As per reports, the marketwide rollover of positions from June 2008 series to July 2008 series stood at 16% while that of Nifty was 20%, as on Friday, 20 June 2008.

The Sensex has lost 1403.58 points or 8.94% in four trading sessions, from its close of 15696.90 on 17 June 2008, due to political uncertainty, and on fears of further rise in interest rates by the Reserve Bank of India to combat inflation

The barometer index has now shaved 5,993.67 points or 29.54% in the calendar year 2008 so far from its close of 20286.99 on 31 December 2008. It is down 6,913.45 points or 32.60% from its all time high of 21206.77 struck on 10 January 2008.

Morgan Stanley in a note to clients today lowered the Sensex’s December 2008 fair value to 13,224, from 14,540 set in April 2007. Turmoil in global financial markets, coupled with the slowing of growth and resurgence of inflation, was the reason for the cut in fair value.

All the sectoral indices on BSE except the BSE IT index declined today. The BSE Health Care index (down 2.45% at 4,220.24), BSE Realty index (down 3.64% at 5,187.92), BSE Metal index (down 4.62% to 13,856.33), BSE Oil & Gas index (down 2.63% to 9,172.10), BSE Power (down 4.01% to 2,437.98), BSE Bankex (down 2.56% at 6,630.58), BSE Capital Goods index (down 5.29% at 10,797.01), BSE PSU index (down 2.46% to 6,214.11), underperformed the Sensex.

The BSE IT index (up 0.68% to 4,233.42), BSE FMCG index (down 1.41% to 2,202.65), BSE Auto (down 2.95% at 3,923.41), BSE TecK index (down 0.19% to 3,228.68), and BSE Consumer Durables index (down 1.79% to 3,774.19), outperformed the Sensex.

The market breadth was extremely weak on BSE with 2213 shares declining as compared to 441 that advanced. 47 remained unchanged.

The BSE Mid-Cap index lost 3.60% to 5,815.23 while the BSE Small-Cap index slumped 3.53% to 7,136.30. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 5,015 crore as compared to Rs 5,513.87 crore on Friday, 20 June 2008. Turnover on NSE’s futures & options segment amounted to Rs 66917.33 crore as compared to Rs 58533.66 crore on Friday, 20 June 2008.

Among the 30-member Sensex pack, 22 declined while the rest gained.

India’s largest state-run oil exploration company Oil & Natural Gas Corporation advanced 2.66% to Rs 889.90 on 7.22 lakh shares. It was the top gainer from Sensex pack. The stock moved in a range of Rs 850 and Rs 894 so far during the day. The company will declare its Q4 and year ended March 2008 results on 25 June 2008.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) was down 3.57% to Rs 2021.80 on 16.93 lakh shares. The stock sharply recovered from day’s low of Rs 1984.05. As per reports, RIL plans to open its first North American plant in North Carolina by investing $215 million.

India’s largest dam builder Jaiprakash Associates tumbled 8.88% to Rs 151.80 on 31.470 lakh shares. It was the top loser from Sensex pack.

Ranbaxy Laboratories (down 5.37% to Rs 513.50), Tata Steel (down 3.94% to Rs 747), and Larsen & Toubro (down 7.10% to Rs 2382), were the other major losers from Sensex pack.

India’s second largest private sector bank in terms of net profit HDFC Bank declined 0.48% to Rs 1093.75. The bank announced a hike in its benchmark prime lending rate by 25 basis points to 15.25%. The bank made this announcement after trading hours on Friday, 20 June 2007.

Other frontline banking stocks, State Bank of India (down 2.59% to Rs 1215.20), and ICICI Bank (down 2% to Rs 720), declined.

Shares of PSU banks slumped. Bank of India (down 9.56% to Rs 224.20), Indian Overseas Bank (down 6.69% to Rs 96.25), Andhra Bank (down 6.81% to Rs 60.25), Allahabad Bank (down 6.68% to Rs 61.45), and Union Bank of India (down 6.56% to Rs 116), declined sharply.

Shares from realty estate sector were not spared either. Unitech (down 6.72% at Rs 172.20), Sobha Developers (down 9.39% at Rs 327.05), Parsvnath Developers (down 5.49% at Rs 143.75) and DLF (down 1.39% at Rs 450), slumped.

India’s largest dedicated housing finance company Housing Development Finance Corporation made a sharp recovery from early low of Rs 2140. It settled with gain of 1.31% to Rs 2212.20.

Mahindra & Mahindra (down 4.81% to Rs 547.55), and Maruti Suzuki India (down 5.47% to Rs 688), slipped. However India’s top truck maker in terms of sales, Tata Motors rose 0.24% to Rs 490.

Software stocks were mixed after the rupee fell to near a 14- month low against the dollar. Satyam Computer Services (up 1.26% to Rs 460.80), Infosys (up 1.17% to Rs 1849), Wipro (up 1.59% to Rs 481.70), edged higher. However India’s largest software services exporter TCS lost 0.40% to Rs 860.

Copper makers fell sharply on fears on further squeeze in margin on reports Escondida, the world's largest copper mine, is trying to force Japanese copper metal makers to further reduce treatment and refining charges for new contracts. Sterlite Industries lost 4.33% to Rs 736.50 and Hindalco Industries slumped 7.76% to Rs 148.50. Escondida, located in northern Chile, is majority-owned and operated by Anglo-Australian diversified natural resources firm BHP Billiton.

Reliance Capital was the top traded counter on BSE with turnover of Rs 354.50 crore followed by Reliance Industries (Rs 342.80 crore), Reliance Petroleum (Rs 238.92 crore), Larsen & Toubro (Rs 191.57 crore), and Anu’s Labs (Rs 179.77 crore), in that order.

Reliance Petroleum led the volumes chart clocking volumes of 1.42 crore shares followed by Reliance Natural Resources (1.39 crore shares), IFCI (1.07 crore shares), Chambal Fertilisers (1.05 crore shares) and Ispat Industries (82.77 lakh shares), in that order

Among the momentum counters, Essar Oil (down 7.45% to Rs 209.05), Reliance Capital (down 9.45% to Rs 925), Anu’s Labs (down 6.27% to Rs 382.90), Suzlon Energy (down 5.88% to Rs 228.80), and Reliance Power (down 7.88% to Rs 161.25), declined sharply

EIH plunged 7.49% to Rs 121 after it reported 9.7% rise in net profit to Rs 65.38 crore on 13.1% rise in sales to Rs 339.88 crore in Q4 March 2008 over Q4 March 2007. The company announced the results after trading hours on Friday, 20 June 2008.

Lotte India Corporation surged 5% to Rs 276.05 after its board decided to delist the shares from all the stock exchanges. The company made this announcement before trading hours today, 23 June 2008.

Ansal Properties & Infrastructure slipped 6% to Rs 87.75 despite HDFC Asset Management Company making investment in its subsidiary for participation in the development of hi-tech township in NCR region. The company made this announcement after trading hours on Friday, 20 June 2007.

Madras Cements rose 1.41% to Rs 2790 after the company said its board will meet on 30 June 2008 to consider stock split and issue of bonus shares. The company made this announcement after trading hours on Friday, 20 June 2007.

Pyramid Saimira Theatre rose 5.36% to Rs 228 after the company said its board will meet on 30 June 2008 to consider a proposal for raising additional funds. The company made this announcement before trading hours today, 23 June 2007.

Dredging Corporation of India surged 4% to Rs 558 despite reporting 22.1% decline in net profit to Rs 50.15 crore on 5.6% decline in sales to Rs 190.72 crore in Q4 March 2008 over Q4 March 2007. The company made this announcement after trading hours on 20 June 2008.

Jolly Board was up 5% at Rs 1876.35 after the company said its board will meet on 28 June 2008 to consider stock split and issue of bonus shares. The company made this announcement after trading hours on Friday, 20 June 2007.

European markets, which opened after Indian markets, were in mixed. Key benchmark indices in United Kingdom (up 0.10% to 5,626.20), and Germany (up 0.13% to 6,585.26) rose. However France’s CAC 40 index slipped 0.12% to 4,503.81

Asian markets, which opened before Indian markets, were trading lower today, 23 June 2008. Hang Seng (down 0.01% at 22,744.15), China's Shanghai Composite (down 2.40% at 2,76.72), Nikkei (down 0.63% at 13,853.96), Taiwan's Taiwan Weighted (down 0.44% at 7,867.57), Singapore's Straits Times (down 0.48% at 2,987.34), and South Korea's Seoul Composite (down 0.89% at 1,715.64), were in the red

US stocks tumbled on Friday, 20 June 2008, with the Dow cracking below the crucial 12,000 mark to hit 3-month lows. Moody's cut its ratings for bond insurers M-B-I-A and Ambac. Merrill Lynch reducing its earnings estimates for a host of banks on concerns of credit risk, capital raising and possible dividend cuts also impacted sentiment. The Dow Jones industrial average slumped 220 points to 11,843 while the Nasdaq Composite index declined 56 points to 2406.

Nymex crude oil futures rose $1.06 to $136.42 a barrel today, 23 June 2008, as growing tension between Iran and Israel countered the impact of Saudi Arabia's pledge to pump more oil, and a vow by Nigerian militants to halt attacks.

The wholesale price index rose 11.05% in the 12 months to 7 June 2008, government data released on Friday, 20 June 2008, showed. The rate was above market expectation of about 10% rise. The reading was the highest in 13 years since 6 May 1995, when it was 11.11%.

Negative bias may continue

The market tumbled by over 500 points in the last trading session and is expected to fall further on weak global cues. The weak close in the US markets and a sharp fall in most of the Asian markets coupled with the presence of sharp intra-day volatility could drag down the local indices. The Nifty could test higher levels at 4410 and may find supports at 4296 or 4245 while the Sensex has a likely support at 14,455 and may face resistance at 14,725.

US indices tumbled sharply on Wednesday, as the Dow Jones slumped by 220 points to close at 11843 and the Nasdaq ended 56 points lower at 2406.

Indian floats largely ended on a weak note. Wipro dropped 7.42% while Satyam, VSNL, Infosys, HDFC Bank and Patni Computer were down nearly 4-5% each. Dr Reddy's and Tata Motors also faltered while MTNL and Rediff registered steady gains.

Crude oil prices in the US market edged higher, with the Nymex light crude oil for July '08 delivery gaining $2.69 to close at $132.62 a barrel. In the commodity space, the Comex gold for August series declined marginally by 50 cents to settle at $903.70 a troy ounce.

Market Outlook - June 23 2008

Market Outlook - June 23 2008

Indian stocks headed for weak start

Indian stocks may be geared for weak start today, 23 June 2008, as whole host of factors including weak global markets, shadows of a interest rate hike post double-digit inflation, and political uncertainty may create havoc on the bourses.

Also there might be possibility of early elections after Uttar Pradesh chief minister Mayawati’s Bahujan Samaj Party (BSP) withdrew its support to the Congress-led UPA government during the weekend.

Volatility is expected to remain high as derivatives contracts for June series are set to expire on Thursday, 26 June 2008. As per reports, the marketwide rollover of positions from June 2008 series to July 2008 series stood at 16% while that of Nifty was 20%, as on Friday, 20 June 2008.

Asian markets were trading weak today, 23 June 2008. China's Shanghai Composite slipped 1.98% or 56.01 points at 2,775.73, Nikkei plunged 1.16% or 162.27 points at 13,779.81, Hang Seng tumbled 1.28% or 290.53 points at 22,455.07, Taiwan's Taiwan Weighted lost 0.44% or 34.87 points at 7,867.57, Singapore's Straits Times fell 0.78% or 23.47 points at 2,978.34. and South Korea's Seoul Composite declined 1.17% or 20.25 points at 1,710.75

US stocks tumbled on Friday, 20 June 2008, with the Dow cracking below the crucial 12,000 mark to hit 3-month lows. Moody's cut its ratings for bond insurers M-B-I-A and Ambac. Merrill Lynch reducing its earnings estimates for a host of banks on concerns of credit risk, capital raising and possible dividend cuts also impacted sentiment. The Dow Jones industrial average slumped 220 points to 11,843 while the Nasdaq Composite index declined 56 points to 2406.

Back home, investors chucked stocks on Friday, 20 June 2008, to survive the snowballing threat of a possible monetary tightening by Reserve Bank of India to rein in soaring inflation. The 30-share BSE Sensex slumped 516.70 points or 3.42% at 14,571.29, and the broader based S&P CNX Nifty was down 157.70 points or 3.48% at 4347.55, on that day.

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 BSE Sensex declined 618.33 points or 4.07% to 14,571.29 in the week ended Friday, 20 June 2008. S&P CNX Nifty lost 169.55 points or 3.75% to 4,347.55 in the week.

As per provisional data, foreign funds sold shares worth a net Rs 999.31 crore on 20 June 2008. Domestic funds bought shares worth a net Rs 563.86 crore on that day.

Foreign institutional investors (FIIs) were net sellers of Rs 1254.40 crore in the futures & options segment on Friday 20 June 2008. They were net sellers of index futures to the tune of Rs 1429.10 crore and bought index options worth Rs 17.74 crore. They were net buyers of stock futures to the tune of Rs 160.87 crore and sold stock options worth Rs 1.91 crore.

The wholesale price index rose 11.05% in the 12 months to 7 June 2008, government data released on Friday, 20 June 2008, showed. The rate was above market expectation of about 10% rise. The reading was the highest in 13 years since 6 May 1995, when it was 11.11%.

Crude oil prices rose in Asian trading today, 23 June 2008, after Saudi Arabia said at a weekend summit that it had raised output, and said speculators were partly to blame for higher prices. New York's main oil futures contract, light sweet crude for August delivery, was 29 cents higher at $135.65 per barrel.

Today's Pick - Amara raja batteries

We recommend a sell in Amara Raja Batteries from a short-term perspective. From the charts of the Amara Raja Batteries we see that the stock has been on a medium-term downtrend from its February 2008 high of Rs 274. In early June, the stock conclusively crossed below the 200-day moving average and continued to decline. However, the stock found support at around Rs 143 and witnessed a corrective up-move to the resistance level Rs 180. After testing this resistance level the stock resumed the medium-term downtrend recently.

The stock is currently trading well below the 50- and 200-day moving averages. The daily momentum indicator has entered into the bearish zone. The daily moving average convergence and divergence is also featuring in the negative territory. Considering that the medium-term down trendline is intact, we are bearish on the stock in the short-term. We expect the stock’s decline to continue until it hits our price target of Rs 150 in the forthcoming trading sessions.

Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 176.

via BL

Financial sector weighs too heavily on US Market

All the ten sectors end in the red for the week overlooking encouraging economic data

US Market ended the week on Friday, 20 June with huge losses. The financial sector was the main one that was to be blamed. Quarterly earnings from Lehman Brothers, Goldman Sachs and Morgan Stanley were poor compared to last year though they were better when compared to Wall Street's expectations. Although financials were the driving force behind the negative sentiment this week, all ten economic sectors posted a decline. Economic data were largely overlooked as market participants focused on corporate news, although there were several notable releases.

The Dow Jones Industrial Average lost 465 points for the week to end at 11,842.69. Tech - heavy Nasdaq lost 48.4 points at 2,406.09. S&P 500 shed 42.1 points to end at 1,317.93. In percentage terms, Dow, S&P 500 and Nasdaq lost 3.8%, 3.1% and 2% respectively. Financials tumbled almost 5% for the week and is at its lowest level in five years.

Earlier during the week, Goldman's earnings blew away forecasts, and Morgan Stanley beat estimates. Lehman's loss of $2.8 billion matched its preannouncement. But the indices sank once Goldman warned that U.S. banks may need to raise $65 billion in fresh capital in response to the subprime fallout. The very following day regional bank Fifth Third Bank said it is going to raise $1 billion in fresh capital, sell $1 billion in assets and cut is dividend by 66%

Also, Citigroup compounded the financial sector's decline after announcing that it will face another barrage of write-downs in its second quarter, although the total amount should be less than its $19 billion first quarter write-down due decreased subprime exposure.

Again, in the same bleeding sector, Moody's cut its AAA credit rating and put a negative outlook on the insurance units of both Ambac Financial and MBIA.

Among interesting corporate news, Ford and General Motors both suffered major declines after Ford said it will be difficult for the company to "break-even" in 2009, and Standard & Poor's put a negative credit rating watch on both GM and Ford.

Among earning reports for the week, FedEx reported quarterly earnings that missed the consensus estimate. The company issued fiscal year 2009 earnings guidance well below expectations, citing sluggish U.S. demand and record energy prices. Market was also disappointed with earnings from retailers Best Buy and Circuit City.

Among major economic reports, May Producer Price Index (PPI) rose by a higher-than-expected amount due to the spike in energy prices. However, core PPI - which excludes food and energy was in-line with estimates.

The housing industry still continued to give dim news after it reported that housing starts fell 3.3% from the prior month and building permits dipped 1.3%.

The focal point next week will be the Federal Reserve Open Market Committee policy announcement on Wednesday, 25 June, 2008. The market expects the fed funds rate to remain unchanged at 2%.

Hotel Leelaventures

Hotel Leelaventures

Daily Call - June 23 2008

Daily Call - June 23 2008

Pre Session Commentary - June 23 2008

The Indian Market is expected to have negative opening on the back of weak global cues as the US market closed in red and Asian markets are trading weak. On Friday, the Indian market closed with heavy losses pressurized by selling across the ground. It was a hard day for the domestic market as it hanged around extremely negative zone after positive start. It had shown negative attitude 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. Inflation figure released on Friday reached to 13 years high to 11.05% for the week ended 7 June 2008. From the sectoral front, metal and oil & gas stocks were most unfavorable as most of selling was seen in these baskets. 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. We expect that market may decline further during the trading session.

US markets closed lower on Friday following negative news from the financial sector. Merrill Lynch slashed their earnings outlooks on several large regional banks. Standard & Poor may downgrade the credit ratings on General Motors, Chrysler and Ford.

The Dow Jones Industrial Average (DJIA) closed lower by 220.40 points at 11,842.69 along with NASDAQ down by 55.97 points to close at 2,406.09 and S&P 500 dropped by 24.90 points to close at 1,317.93.

Indian ADRs ended down. In technology sector, Wipro dropped by (7.42%) along with Satyam by (5.83%), Patni Computers by (4.58%) and Infosys by (4.42%). In banking sector, ICICI bank and HDFC bank increased by (5.71%) and (4.42%) respectively. In telecommunication sector, Tata Communication and MTNL reduced by (5.62%) and (0.65%). Sterlite industries declined (4.67%).

Today the major stock markets in Asia are trading in red extending its losses to third day, after Wall Street plunged on Friday. Hang Seng index is trading lower by 290.53 points at 22,455.07 along with Japan’s Nikkei trading down by 162.27 points at 13,779.81 and Taiwan Weighted trading at 7,867.57 with a fall of 34.87 points.

The FIIs on Friday stood as net seller in equity. The gross equity purchased was Rs1,858.70 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,211.30 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs352.60) Crore and net debt was Rs0.00 Crore.

Today, Nifty has support at 4,234 and resistance at 4,419 and BSE Sensex has support at 14,218 and resistance at 14,801.

Morning Call - June 23 2008

Market Grape Wine :

In House :

Nifty at a support of 4270 and 4220 with resistance at 4395 and 4425 levels.

Cash: Sell ABB below 926 TGT 900with S/L 937

Cash: Sell SUZLON below 238 TGT 227 with S/L 243.

Future: REL CAPITAL below 1019 TGT 970 with S/L 1040 .

Future: Sell RCOM below 495 TGT 475 with S/L 505

Out House:

Markets at a support of 14434 & 14234 resistance at 14747 & 15643 levels .

Buy : Tisco at dips

Buy : Lupin at dips

Buy : Infy at dips

Buy : HP at dips

Buy : Geshipping at dips

Dark Horse : HLL , RPL , INFY & ITC

Trading Calls - June 23 2008

Nifty (4348) Sup 4250 Res 4400

Sell Hero Honda (758) SL 765
Target 745, 741

Sell Suzlon (244) SL 249
Target 236, 234

Sell NALCO (430) SL 436
Target 420, 418

Sell Dr Reddy’s (658) SL 6665
Target 646, 642

Sell HDIL (528) SL 535
Target 516, 512

Squeeze…handle with care!

Managing is like holding a pigeon in your hand. Squeeze too hard and you kill it, not hard enough and it flies away.”

A squeeze is in store for the bulls at the start. After the squeeze could come the short-squeeze. So, handle your trades with care. Inflation crossing the double-digit mark was widely anticipated. But, the fact that it surpassed the worst possible increase set the cat among the pigeons.

Lots of shorts are believed to have been created in July futures and a low rollover in the near-month Nifty futures suggests more pain in the near term. Given that it's a derivative settlement week, expect a lot of volatility. The bias remains negative, in the wake of the worsening global as well as local factors. The heated political environment is also not making life any better for the bulls.

The outcome of this week's Federal Reserve meet and that of the UPA-Left panel on the nuke deal will have some bearing on the sentiment. The US central bank is not expected to cut rates, and may even hint at higher borrowing costs going ahead. One will have to wait and listen as to what Bernanke & Co. say about the future outlook on the US economy and interest rates.

Today, we expect another gap-down opening. The current situation warrants extreme caution. Any advance (dare we say) is likely to be driven by short-covering as fresh buying is negligible. FIIs continue to be heavy sellers even as local funds are continuing their shopping spree. The market will remain under pressure unless crude oil (and local inflation) cools off sharply and FIIs turn net buyers.

Stocks fell like nine pins on Friday, with the Nifty breaking all support levels and ending below its 500 day moving average (DMA). Indicators from the technical and derivative side of the market are also not encouraging for the bulls. As far as local politics is concerned, there are too many uncertainties at the moment, which is not good for the bulls.

FIIs were net sellers of Rs9.99bn (provisional) in the cash segment on Friday while the local institutions poured in Rs5.64bn. In the F&O segment, foreign funds were net sellers of Rs12.52bn.

On Thursday, FIIs were net sellers of Rs3.53bn in the cash segment. With this, they have pulled out over $5.6bn from the Indian market this year.

Results Today: Allsec Technologies, Assam Co., Central Bank, Electrosteel Castings, Gokul Refoils, Indian Hotels, Ramco Systems, Tata Power, United Breweries and United Breweries Holdings.

Asian stocks are mostly down this morning following the big fall in US stocks on Friday. A rebound in oil prices heightened concern that economic growth will slow and the continuing troubles in the credit markets dragged financial companies lower.

The MSCI Asia Pacific Index lost 1.1% to 138.53 as of 9:40 a.m. in Tokyo, the lowest since March 24. Japan's Nikkei 225 Stock Average fell 1.7% to 13,707.13. Indexes also declined in Australia, South Korea and New Zealand.

US stocks slumped on Friday, with the Dow Jones Industrial Average slipping below the 12,000 mark for the first time in three months. Rising oil prices and fresh bad news for the beleaguered financial sector were the major factors behind the sharp fall.

Bonds prices rallied, sending the corresponding yields lower, as investors sought the comparative safety of government securities. The dollar slipped versus other major currencies. Oil prices rose on reports that Israel may be undertaking rehearsals for an attack on Iran, which threatened to retaliate.

The Dow slid 220.40 points, or 1.8% to 11,842.69, its lowest finish since March 10. It was the blue-chip index's first close below 12,000 since March 17, when it ended at 11,972.25. The Dow lost about 465 points, or 3.8%, during the week.

Of the Dow's 30 components, 29 posted losses, with financials among the hardest hit after Merrill Lynch downgraded a number of regional banks. Merrill analysts predicted further dividend cuts from regional banks.

For the week, the S&P 500 fell 3.1%, and the Nasdaq fell just under 2%.

Market breadth was negative. Six stocks fell for each that rose on the New York Stock Exchange.

Citigroup led financial shares lower as UBS said the biggest US bank may post a second-quarter loss.

MBIA shares fell 13% after the bond insurer had its rating cut by Moody's, which also cut its ratings on another bond insurer Ambac Financial. The move followed similar actions by Standard & Poor's and Fitch Ratings.

GM shares plunged almost 6.8% after S&P said it may cut its debt rating on the company and on its finance affiliate unit. S&P also said it may cut debt ratings and finance unit ratings on Ford and Chrysler. Moody's cut Ford's outlook to "negative" from "stable."

In additional, Ford said it is delaying the launch of its redesigned pickup truck and warned that its 2008 loss will be bigger than its 2007 loss.

US light crude oil for July delivery rose US$2.69 to settle at US$134.62 a barrel on the New York Mercantile Exchange. The national average price for a gallon of regular unleaded gas rose to US$4.075 from US$4.073 the previous day, according to AAA.

COMEX gold for August delivery fell 50 cents to settle at $903.70 an ounce. In currency trading, the dollar slumped versus the euro and the yen. In the bond market, Treasury prices rallied, lowering the yield on the benchmark 10-year note to 4.17% from 4.21% late on Thursday.

Mining and banking shares hurt shares in London. The FTSE 100 index closed down 1.5% at 5,620.80. Other European shares also finished lower. The pan-European Dow Jones Stoxx 600 index fell 1.7% to 295.08, breaking below the 300 level for the second time in two days.

Germany's DAX 30 index fell 2.1% to 6,578.44 and the French CAC-40 index dropped 1.8% to 4,509.27.

In the emerging markets, the Bovespa in Brazil was down almost 3% at 64,613 while the IPC index in Mexico fell 1% to 29,533. The RTS index in Russia dipped by 0.7% to 2384 and the ISE National-30 index in Turkey dropped 0.2% to 46,004.

Stocks may rebound from year lows

Markets closed in deep red for third straight trading session ending the week with sharp losses after inflation shot up to a 13-year high of 11.05% triggering fears of some monetary tightening measures from the central bank. Further media reports stated the Prime Minister would step down if talks with the Left parties on the Indo-US nuclear deal issue did not yield result dampened the sentiments.

The slide was so sharp that both the major indices, Sensex and Nifty fell to their year lows falling below previous low of 14,645 and 4,369 on June 10 respectively. Among the 50-Nifty, 49 stocks ended in negative terrain and only 1 stock ended in green. Finally, the BSE benchmark Sensex lost 516 points to close at 14,571 and the Nifty index lost 156 points to close at 4,347.

Jindal Drilling surged by over 4% to Rs1577 after the company on Wednesday announced that the board of directors would consider stock split on June 30, 2008. The scrip touched an intra-day high of Rs1725 and a low of Rs1552.

Rain Commodities lost by over 11% to Rs190. The company’s unit-II, situated at Boincheruvupalli Village, Peapully Mandal, Kurnool has started commercial production of its expanded capacity of 1.5mn metric tonnes of cement per annum with effect from June 19, 2008.

With the commencement of commercial production of expanded capacity, the total production capacity of the company now stands at 3.16 million metric tonnes of cement per annum. The scrip touched an intra-day high of Rs218 and a low of Rs188 and has recorded volumes of over 1,00,000 shares on NSE.

L&T ended 2.2% lower to close at Rs2563. The company secured order worth Rs10bn. The company’s Heavy Engineering Division crossed Rs10bn of order booking for High-tech equipment and systems within 2 months of Q1 2008 - 09. Major local contracts include a large order for Power Plant Equipment from Coastal Gujarat Power Ltd (CGPL), a subsidiary of Tata Power Company Ltd, for the first Ultra Mega Power Plant (UMPP), and another large contract from HPCL Mittal Energy Ltd, Bathinda (HMEL) for critical reactors.

The scrip touched an intra-day high of Rs2655 and a low of Rs2545 and recorded volumes of over 5,00,000 shares on NSE.

Aditya Birla Nuvo slipped by 3.7% to Rs1281. The company announced that it shut down its fertilizer plant on June 4. The scrip touched an intra-day high of Rs1356 and a low of Rs1270 and recorded volumes of over 3,000 shares on NSE.

Bata India lost ground towards the end, the stock was down 1% to Rs150. Reports stated that the company would open 240 outlets in next three years for a total capex of Rs4.8bn. The scrip touched an intra-day high of Rs161 and a low of Rs148 and recorded volumes of over 4,00,000 shares on NSE.

BHEL was down by a percent to Rs1405. The company announced that it secured Rs18.4bn contract to set up 8500MW power project in Jharkhand from Damodar Valley. The scrip touched an intra-day high of Rs1453 and a low of Rs1398 and recorded volumes of over 5,00,000 shares on NSE.

Corporate News

Hindalco Industries plans 1:3 rights issue to raise Rs50bn.(TOI)
GMR group to buy stake in ONGC’s Rs310bn Kakinada refinery in Andhra Pradesh.(BS)
Taro Pharmaceuticals sues its proposed buyer Sun Pharmaceutical Industries for allegedly thwarting formers’ attempt to sell off its unit in Ireland.(BS)
L&T says its heavy engineering division crosses Rs10bn of order booking for hi-tech equipment & systems in two months of current quarter.(BL)
Essar Shipping Ports and Logistics to invest Rs 100bn for the development of shipping, ports and oil field services over the next three years.(BS)
DLF to get around 5,000 acres near greater Noida at less than market rate under the Taj Expressway Industrial Development Authority’s scheme.(ET)
Great Off-shore secures an order for its heavy lift vessel in a Mediterranean company for US$15mn per annum.(FE)
Ranbaxy to continue to pursue acquisitions despite the change in its ownership.(BL)
Glenmark has received an approval from USFDA for marketing and distribution of Trandolapril tablets.(TOI)
NTPC would add 3,000MW of power for commercial use in the current fiscal.(BL)
HDFC Bank raises its benchmark prime lending rate by 0.25% to 15.25%.(FE)
Petronet LNG considering taking participating interests in gas assets in Australia.(BL)
Reliance Industries USA to invest US$215mn and create 200 new jobs at a newly acquired polyester plant in the US.(FE)
A consortium of developers led by Maytas Infra starts work at the greenfield airport in Shimoga, Karnataka.(BL)
Jindal Steel & Power plans to invest Rs320bn in coal-to-liquid projects.(TOI)
MTNL floats a Rs2.5bn tender for building network based on Internet Protocol infrastructure.(ET)
Spencer’s Retail, part of the RPG group, plans to invest Rs25bn over the next two years to expand its retail network.(DNA)
HDFC AMC invests Rs2.4bn in Ansal Properties & Infrastructures’ Noida project.(BS)
Parsvnath Developers plans to open retail stores by end of this fiscal.(DNA)
Tata Steel and Essar Steel along with ArcelorMittal ruled out of the race to acquire a stake in Indonesia's state-owned Krakatau Steel.(ET)
Coal India and Tata Power to form a 40:60 JV to produce power from washery rejects.(BL)
Government approves mining plan for the coal block that Reliance Power plans to use for setting up 4,000MW UMPP at Sasan in Madhya Pradesh.(BS)
Royal Orchid Hotels to develop six new hotels with an investment of Rs5.2bn.(DNA)
Indo Asian Fusegear shelves its plan to buy a majority stake in a European firm.(ET)
SAIL keen on reviving a long pending proposal to fund Rs1.7bn project for redevelopment of Bharat Coking Coal operated Moonidih mine in Jharkhand.(BL)
Punjab National Bank to raise deposit rates by 50bps.(TOI)
Three UK based companies show interest in picking up a controlling stake in GHCL.(BL)
US based Holiday Group to enter into infrastructure, housing and hospitality sectors in Kerala with an investment of Rs10n.(ET)
SVP Group has signed a deal with Bharti Retail to lease out 32,000sq ft of space in Ghaziabad.(ET)
S Kumars subsidiary Reid and Taylor may sell stake to a European fund for Rs150 per share.(ET)
Amtek Transportation Division, part of Amtek Auto, enters into a JV with American Railcar Industries to foray into railcars.(ET)

Economic News

Leading Indian carriers say more air fare increases are possible.(BS)
Finance Ministry says it expects RBI to take monetary measures to help check inflation.(FE)
3G spectrum is not available in certain circles for allocation to CDMA players, according to an internal TRAI study.(BS)
TRAI to submit its recommendations on internet telephony in two months.(ET)
Coal ministry gives its approval for setting up a regulatory body for coal.(DNA)
Provident Fund trustees to press for increasing the interest rate on PF to at least 12%.(ET)
CMIE forecasts 5.5% inflation for FY09.(FE)
As per SEBI, currency futures may start by end of August 2008.(ET)
India exports to the European Union may face higher barriers, if the latter goes ahead with a proposal to place carbon tax on goods imported from advanced developing countries.(ET)