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Tuesday, July 08, 2008
BSE Bulk Deals to Watch - July 8 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
8/7/2008 532022 FILAT FASH BHANABHAI GANPAT PARMAR B 30100 26.11
8/7/2008 532022 FILAT FASH AUM TECHNOCAST PVT. LTD S 66031 29.37
8/7/2008 532996 FIRST WIN SHOBHA IMTIYAZ DESAI B 236000 85.00
8/7/2008 532996 FIRST WIN IMTIYAZ IBRAHIM DESAI B 289500 84.50
8/7/2008 532996 FIRST WIN RUPAK KUMUDBHAI SHAH B 225469 86.37
8/7/2008 532996 FIRST WIN PRABHUDAS LILLADHER PVT. LTD. B 176368 86.49
8/7/2008 532996 FIRST WIN N D NISSAR B 190385 85.87
8/7/2008 532996 FIRST WIN SAM GLOBAL SECURITIES LTD B 200587 86.35
8/7/2008 532996 FIRST WIN B K SHAH CO B 121682 86.45
8/7/2008 532996 FIRST WIN H.J.SECURITIES PVT.LTD. B 164064 87.69
8/7/2008 532996 FIRST WIN RUPAK KUMUDBHAI SHAH S 179200 85.80
8/7/2008 532996 FIRST WIN PRABHUDAS LILLADHER PVT. LTD. S 176368 86.18
8/7/2008 532996 FIRST WIN N D NISSAR S 190385 85.79
8/7/2008 532996 FIRST WIN SAM GLOBAL SECURITIES LTD S 200587 86.43
8/7/2008 532996 FIRST WIN B K SHAH CO S 121682 86.88
8/7/2008 532996 FIRST WIN H.J.SECURITIES PVT.LTD. S 164064 87.81
8/7/2008 500398 GE CAP TRANS GLOBE CAPITAL MARKET LTD. B 173025 94.92
8/7/2008 531439 GOLDSTON TEC SUMMIT COMMUNICATIONS PVT LTD B 119139 225.90
8/7/2008 530985 JPTSECURITII ANGEL INFIN PRIVATE LIMITED S 22642 234.05
8/7/2008 500256 LOK HOUSI CO PRIYAL INTERNATIONAL S 326926 42.40
8/7/2008 532791 PYRAMID SAIM HARDIK M MITHANI B 152286 162.88
8/7/2008 532791 PYRAMID SAIM SPJSTOCK B 169477 162.50
8/7/2008 532791 PYRAMID SAIM HARDIK M MITHANI S 152286 162.62
8/7/2008 532791 PYRAMID SAIM SPJSTOCK S 169477 163.12
8/7/2008 532665 RAJVIR IND ABHISHEK FINCAP SERVICES PRIVATE LIMITED B 35000 98.95
8/7/2008 502587 RAMA PUL PAP PRITI KRISHNAGOPAL CHANDAK B 116025 25.19
8/7/2008 502587 RAMA PUL PAP KRISHNAGOPAL M CHANDAK S 76000 25.23
8/7/2008 502587 RAMA PUL PAP KRISHNA MOTILAL CHANDAK S 40000 25.10
8/7/2008 532884 REFEX REFRIG TUSHAR RAMESHBHAI PATEL S 146384 196.53
NSE Bulk Deals to Watch - July 8 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
08-JUL-2008,ASIANHOTEL,Asian Hotels Ltd.,MOSAIC INTER TRADE LIMITED,BUY,119499,480.00,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,ACCURATE FINSTOCK PVT LTD,BUY,90000,84.00,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,ADROIT FINANCIAL SERVICES PVT LTD,BUY,107755,85.91,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,AMBIT SECURITIES BROKING PVT. LTD.,BUY,102466,86.79,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,B K SHAH CO KETAN BHAILAL SHAH,BUY,137962,87.78,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,CHOKHANI SECURITIES LTD,BUY,177700,85.78,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,DINDAYAL BIYANI STOCK BROKERS LTD,BUY,99433,86.73,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,DINESH MUNJAL,BUY,179403,86.34,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,DIPAK RAMANBHAI RATHOD,BUY,97049,86.48,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,DIPAN MEHTA SHARE & STOCK BROKERS PVT. LTD.,BUY,107928,87.16,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,G RAMAKRISHNA,BUY,108000,85.34,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,INNOVATE SECURITIES PVT LTD.,BUY,144847,86.00,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,184438,87.90,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,MANIPUT INVESTMENTS PVT LTD,BUY,135152,87.60,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,MANSUKH SECURITIES & FINANCE LTD,BUY,123193,84.68,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,NISSAR BROTHERS,BUY,323449,86.15,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,PRASHANT JAYANTILAL PATEL,BUY,253872,85.79,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,R APPALA RAJU,BUY,170000,87.12,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,R.M. SHARE TRADING PVT LTD,BUY,160495,86.69,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,RAVI KUMAR,BUY,131041,86.00,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,SANGEETA KAKANI,BUY,294723,84.57,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,SANJAY BHANWARLAL JAIN,BUY,89864,87.14,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,SMC GLOBAL SECURITIES LTD.,BUY,160738,86.29,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,BUY,435982,86.40,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,VIPUL PANNALAL SHAH,BUY,138873,84.25,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,YUVAK SHARE TRADING PVT LTD,BUY,317603,87.20,-
08-JUL-2008,GOLDTECH,Goldstone Tech Ltd.,HEMANT MADHUSUDAN SHETH,BUY,123000,224.79,-
08-JUL-2008,GOLDTECH,Goldstone Tech Ltd.,SUMMIT COMMUNICATIONS PRIVATE LIMITED,BUY,94008,225.20,-
08-JUL-2008,MAXWELL,Maxwell Industries Ltd.,PRASHANT JAIPAL REDDY,BUY,710050,13.10,-
08-JUL-2008,PSTL,Pyramid Saimira Theatre L,HARDIK M MITHANI,BUY,196894,162.11,-
08-JUL-2008,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,BUY,209471,135.85,-
08-JUL-2008,SRTRANSFIN,Shriram Trans Fin Co. Ltd,QUANTUM ENDOWMENT FUND N.V.,BUY,3128257,290.00,-
08-JUL-2008,TRENT,Trent Ltd.,BILL & MELINDA GATES FOUNDATION,BUY,98790,452.00,-
08-JUL-2008,ASIANHOTEL,Asian Hotels Ltd.,HERMANOS ZUBADI INVESTMENTS PVT LTD,SELL,119499,480.00,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,ADROIT FINANCIAL SERVICES PVT LTD,SELL,107755,86.07,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,AMBIT SECURITIES BROKING PVT. LTD.,SELL,102466,86.81,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,B K SHAH CO KETAN BHAILAL SHAH,SELL,137962,88.12,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,CHOKHANI SECURITIES LTD,SELL,177700,86.10,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,DINDAYAL BIYANI STOCK BROKERS LTD,SELL,99433,87.23,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,DINESH MUNJAL,SELL,179403,86.45,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,DIPAK RAMANBHAI RATHOD,SELL,97049,88.30,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,DIPAN MEHTA SHARE & STOCK BROKERS PVT. LTD.,SELL,107928,87.31,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,G RAMAKRISHNA,SELL,108000,85.63,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,181438,88.19,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,MANIPUT INVESTMENTS PVT LTD,SELL,135152,87.36,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,MANSUKH SECURITIES & FINANCE LTD,SELL,121193,84.95,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,NISSAR BROTHERS,SELL,323449,86.22,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,PRASHANT JAYANTILAL PATEL,SELL,253872,86.31,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,R APPALA RAJU,SELL,170000,85.59,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,R.M. SHARE TRADING PVT LTD,SELL,160495,87.50,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,RAVI KUMAR,SELL,130991,85.82,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,SANGEETA KAKANI,SELL,294723,84.11,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,SANJAY BHANWARLAL JAIN,SELL,89864,87.36,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,SMC GLOBAL SECURITIES LTD.,SELL,160738,86.48,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,SELL,427982,86.47,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,VIPUL PANNALAL SHAH,SELL,138873,84.29,-
08-JUL-2008,FIRSTWIN,First Winner Industries L,YUVAK SHARE TRADING PVT LTD,SELL,315603,87.06,-
08-JUL-2008,GOLDTECH,Goldstone Tech Ltd.,MALA HEMANT SHETH,SELL,118648,224.68,-
08-JUL-2008,MAXWELL,Maxwell Industries Ltd.,SUNIL JAYKUMAR PATHARE,SELL,710050,13.10,-
08-JUL-2008,PSTL,Pyramid Saimira Theatre L,HARDIK M MITHANI,SELL,196894,162.48,-
08-JUL-2008,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,SELL,229846,135.81,-
08-JUL-2008,SRTRANSFIN,Shriram Trans Fin Co. Ltd,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,3128257,290.00,-
08-JUL-2008,TRENT,Trent Ltd.,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,98790,452.00,-
Post Session Commentary - July 8 2008
The domestic market came off sharply from the day’s lows by pairing most of initial losses irrespective of the Left parties step to pull out support from the UPA government. After the initial fall, it kept on trying to recover but still close in negative territory. The market opened with downbeat note on the back of weak cues from the US markets on financial worries. The Left parties have withdrawn support to the UPA government, mentioning Prime Minister''s announcement in Tokyo about going to the IAEA soon as the provocation. They are planning to meet President Pratibha Patil tomorrow to formally withdraw support. Indian market showed some upward trend after left announcement to pullout the support from the Union government. Market staged a smart downward rally but was unable to touch the dotted line. The BSE Sensex closed below 13,400 mark today and NSE Nifty below 4,000. Oil & Gas and IT stocks were major sufferers due to selling pressure while Capital Goods and Metal stocks were in favor as buying witnessed in these baskets. The market breadth was negative as 1156 stocks closed in green while 1417stocks closed in red and 83 stocks remained unchanged.
The BSE Sensex closed lower by 176.34 points at 13,349.65 and NSE Nifty ended down by 41.45 points at 3,988.55. The BSE Mid Caps and Small Cap closed negative with loss of 23.82 points and 30.39 points 5,315.99 and 6,562.62 respectively. The BSE Sensex touched intraday high 13,451.67 of and intraday low of 13,049.96.
Lossers from the BSE are Wipro Ltd (4.61%), Tata Motors (4.13%), Infosys Tech (3.62), ITC Ltd (3.24%), Grasim Indus (3.19%), Reliance Infra (3.03%), Satyam Comp (2.99), TCS Ltd (2.97%), Reliance (2.44%) and HDFC (2.14%).
Gainers from the BSE are ACC Ltd (6.21%), M&M Ltd (3.92%), NTPC Ltd (3.60%), BHEL (2.18%), Hindalco (2.18%) and L&T Ltd (1.50%).
The Oil & Gas index ended down by 138.78 points at 8,743.36. As Relaince (2.44%), ONGC (1.74%), Aban Offshore (1.46%), Reliance Petroleum (1.32%) and Cairn India (0.99%) closed in negative territory.
The IT Index closed lower by 129.77 points at 4,045.95. Lossers are Moser bayer (5.50%) along with Wipro Ltd (4.61%), Infosys Tech (3.62), Aptech Ltd (3.13%), HCL Tech (3.03%), Satyam (2.99%) and TCS Ltd (2.97%).
The Consumer Durables Index closed lower by 72.12 points at 3,530.33. Lossers are Rajesh Export (4.45%) along with Videocon Ltd (2.99%), Blue Star L (2.53%) and Titan India (1.35%).
The FMCG index ended down by 40.32 points at 1,952.33. Lossers are Rei Agro Ltd (5.00%), ITC Ltd (3.24%), Marico Ltd (3.13%), United Sprit (2.52%), Tata Tea Ltd (2.30%), and United Brew (2.20%).
The Capital Goods index closed up by 145.72 points at 10,854.14. Gainers are Alstom Proje (7.34%), Areva (5.38%), Bharat Elect (4.91%), Elecon Eng C (3.12%), BHEL (2.18%) and ABB Ltd (1.78%).
The Power index gained 9.88 points to close at 2,330.34. Major gainers are Areva (5.38%), NTPC Ltd (3.60%), Tornt Power (3.46%), Power Grid (2.40), BHEL (2.18%) and ABB Ltd (1.78%).
Sensex erases its lows but sheds 96 points at close
Weak global cues and political tensions back home led the market open lower today. The Sensex was down 233 points at the open and remained subdued, as investors booked profits after the recent gains. IT, Teck, fast moving consumer goods (FMCG) and consumer durables (CD) stocks took the major beating. The index faltered under the selling pressure by afternoon and slipped to the day's low of 13,050. While the market fluctuated sharply thereafter, the firm bullish sentiment and strong buying in heavyweights and capital goods (CG) stocks in the late trades helped the Sensex erase most of its losses. The Sensex finally ended the session by shedding 1.30% or 176 points at 13,350. The Nifty slipped 41 points at 3,989.
The market breadth was negative, with the losers outpacing the gainers in the ratio of 1.20:1. Of the 2,656 stocks traded on the BSE, 1,408 stocks declined, 1,167 stocks advanced and 81 stocks ended unchanged. Most of the sectoral indices ended in the red. The BSE IT index dropped 3.11% at 4,046 followed by the BSE Teck index (down 2.50% at 3,017) and the BSE FMCG index (down 2.02% at 1,952). However, the BSE CG index gained 1.36% at 10,854 and the BSE PSU index (up 0.82% at 5,724).
Heavyweights led the fall in the Sensex. Wipro slipped by 4.61% at Rs419.70, Tata Motors slumped by 4.13% at Rs376.35, Infosys shed 3.62% at Rs1,736, ITC lost 3.24% at Rs171.85, Grasim Industries was down 3.19% at Rs1,670.70 and Reliance Infrastructure tumbled 3.03% at Rs754. Among the gainers ACC jumped 6.21% at Rs527, Mahindra & Mahindra gained 3.92% at Rs515.80, NTPC rose 3.60% at Rs161.20, SBI was up by 2.79% at Rs1,204.45 and BHEL was up 2.18% at Rs1,498.25, while Hindalco and L&T ended with modest gains.
Over 2.84 crore Reliance Natural Resources shares changed hands on the BSE followed by IFCI (2.47 crore shares), First Winner Industries (1.35 crore shares), Reliance Petroleum (99.92 lakh shares) and Chambal Fertilisers (91.83 lakh shares).
Sensex sheds 176 points in sell-off in world markets; Nifty ends below 4,000
The market failed to sustain yesterday’s small gains as global markets played a spoilsport. Nevertheless, the market came off lower level after an initial sharp fall, shrugging of decision of Left parties to withdraw their support to the Congress-led United Progressive Alliance (UPA) government. The moment the Left front announced their decision in afternoon trade, recovery began on the bourses.
The 30-share BSE Sensex lost 176.34 points or 1.3% at 13,349.65. At the day’s low of 13,049.96 Sensex lost 476.03 points in mid-morning trade. At the day’s high of 13,451.67 hit in late trade Sensex lost 74.32 points.
The broader based S&P CNX Nifty was down 41.45 points or 1.03% at 3,988.55.
Hopes that government may push forwards some stalled economic reforms aided recovery on the bourses from lower level after the Left's decision. Over the last four years, Left parities had stalled privatisation of state-run firms, pension reforms, higher foreign limits in insurance and more liberal norms for foreign banks
FMCG, consumer durables, and IT stocks slipped while capital goods and power stocks climbed. The market breadth was weak.
The Left's exit is expected to lead to a parliamentary vote of confidence in the government, which hopes the newly enlisted support of the regional Samajwadi Party (SP) will enable it to win such a ballot and avoid calling early general elections. Left parties had for months threatened to end their support if the government pressed ahead with the deal and approached the International Atomic Energy Agency for its approval.
Prime Minister Manmohan Singh on Monday, 7 July 2008 said the UPA government will go through the remaining formalities of the nuclear deal with the US and expressed full confidence that his government will last its full term. SP said on Tuesday it will vote with the government in support of the nuclear deal with the United States.
Stocks tumbled in Asia and Europe after sharp decline in shares of top US mortgage firms Fannie Mae and Freddie Mac on Monday, 7 July 2008, on funding concerns reminded investors about the fragility of global credit markets. In Europe, key benchmark indices in France, Germany and UK were down by between 1.2% to 1.82%. in Asia, key benchmark indices in Taiwan, Singapore, Hong Kong, South Korea, Japan were down by between 1.74% to 3.94%. China’s Shanghai Composite rose 0.81%.
Back home, Nifty July 2008 futures were at 3938.70, at a discount of 49.85 points as compared to spot closing of 3988.55.
BSE clocked a turnover of Rs 4,513 crore today 8 July 2008 as compared to Rs 6,784.55 crore on Monday, 7 July 2008. NSE's futures & options (F&O) segment turnover was Rs 41,117.91 crore, which was lower than Rs 44,634.29 crore on Monday, 7 July 2008.
As per the provisional figures on NSE, the foreign institutional investors (fii)'s sold shares worth Rs 326.27 crore today,8 July 2008 and domestic funds bought shares worth Rs 427.27 crore.
From a record high of 21,206.77 hit on 10 January 2008, Sensex has lost 7,857.12 points or 37.05%. It is down 6,937.34 points or 34.19% in calendar year 2008 so far.
Back to today's trade, the BSE Mid-Cap index was down 0.45% at 5,315.99, while the BSE Small-Cap index shed 0.46% to 6,562.62.
BSE IT index (down 3.11% to 4,045.95), BSE TecK index (down 2.5% to 3,016.65), BSE FMCG index (down 2.02% to 1,952.33), BSE Consumer Durables index (down 2% to 3,530.33), The BSE Oil & Gas index (down 1.56% to 8,743.36) underperformed Sensex.
The BSE Capital Goods index (up 1.36% at 10,854.14), BSE PSU index (up 0.82% to 5,723.73), BSE Power (up 0.43% to 2,300.34), BSE Metal index (up 0.07% to 12,266.78), BSE Bankex (up 0.06% at 5,896.14), BSE Auto (down 0.3% at 3,498.38), BSE Health Care index (down 0.44% at 4,090.38), BSE Realty index (down 0.85% at 4,620.98) outperformed Sensex.
The market breadth was weak on BSE, with 1417 losers outpacing 1,156 gainers. 83 stocks remained unchanged.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries declined 2.44% to Rs 1,978.60.
India’s largest commercial bank State Bank of India rose 2.79% to Rs 1,204.45. It recovered from session’s low of Rs 1,059.40.
Capital goods stocks rose. India’s largest engineering and construction firm by sales Larsen & Toubro rose 1.5% to Rs 2,400.20 as it bagged a Rs 1047-crore order from Railways. It recovered from session’s low of Rs 2,260.80. Bharat Heavy Electricals (up 2.18% to Rs 1,498.25) and Suzlon Energy (up 1% to Rs 196.75) edged higher.
Power stocks also rose. NTPC (up 3.6% to Rs 161.20), PowerGrid Corporation of India (up 2.4% to Rs 78.95), Reliance Power (up 0.96% to Rs 137) edged higher. India’s second largest power utility firm in terms of sales Reliance Infrastructure fell 3.03% to Rs 754.95.
India's second largest software exporter by sales Infosys Technologies fell 3.62% to Rs 1,736.
India’s third largest IT services provider by sales Satyam Computer Services fell 2.99% to Rs 467.55. The company said on Monday, 7 July 2008, it has entered into an alliance with Tyfone, a global provider of mobile financial services, infrastructure and fully-integrated mobile payments capabilities. The two companies will collaborate to provide businesses with an even greater edge when competing in the mobile financial services sector.
Tata Consultancy Services (down 2.97% to Rs 826.70) and Wipro (down 4.61% to Rs 419.70) edged lower.
FMCG stocks declined. ITC (down 3.24% to Rs 171.85) and United Spirits (down 2.52% to Rs 1,100.10) edged lower. India’s largest FMCG major by sales Hindustan Unilever rose 0.07% to Rs 209.60.
Consumer durables stocks fell. Videocon Industries (down 2.99% to Rs 269.10), Titan Industries (down 1.35% to Rs 1,035.70) and Rajesh Exports (down 4.45% to Rs 52.60) edged lower.
ACC (up 6.21% to Rs 527), Mahindra & Mahindra (up 3.92% to Rs 515.80), Hindalco Industries (up 2.18% to Rs 145.40), Ambuja Cements (up 0.81% to Rs 74.50) edged higher from the Sensex pack.
Tata Motors (down 4.13% to Rs 376.35), Grasim Industries (down 3.19% to Rs 1,670.70), HDFC (down 2.14% to Rs 2,010.95), ICICI Bank (down 1.64% to Rs 593.85), Bharti Airtel (down 2.03% to Rs 711.90), edged lower from the Sensex pack.
India’s second largest telecom services provider by sales Reliance Communications fell 1.05% to Rs 415.40. The stock recovered from session's low Rs 395.05. As per reports, talks between Reliance Communications (RCom) and South Africa's MTN Group which are due to end on Tuesday, 8 July 2008, may be extended by three or four weeks. The deal may be structured in a way whereby RCom Chairman Anil Ambani will take 51% in the South African firm through a cash and share swap. Such an arrangement will require more scrutiny by MTN which is the reason why the deadline for the 45-day exclusivity pact might be extended, reports suggest.
Reliance Natural Resources clocked the highest volume of 2.84 crore shares on BSE. IFCI (2.47 crore shares), Reliance Petroleum (99.96 lakh shares), Chambal Fertilisers and Chemicals (91.84 crore shares) and Ispat Industries (89.76 lakh shares) were the other volume toppers in that order.
Reliance Capital clocked the highest turnover of Rs 425.08 crore on BSE. Reliance Industries (Rs 366.11 crore), Reliance Infrastructure (Rs 230.90 crore), Reliance Natural Resources (Rs 186.76 crore) and Reliance Petroleum (Rs 163.96 crore) were the other turnover toppers in that order.
US markets edged lower yesterday, 7 July 2008, on concerns that the top two mortgage providers would have to raise even more capital, eroding existing shareholders' stakes further. The Dow Jones industrial average lost 56.58 points, or 0.50%, to 11,231.96. The Standard & Poor's 500 index slipped 10.59 points, or 0.84%, to 1,252.31, and the Nasdaq Composite index dropped 2.06 points, or 0.09%, to 2,243.32.
Oil, India's biggest import, rose by more than half a dollar to nearly $142 a barrel, rebounding from the previous day's near $4 fall as the US dollar weakened.
The BSE Sensex rose 71.99 points or 0.54% at 13,525.99 and the broader based S&P CNX Nifty gained 14 points or 0.35% at 4,030 yesterday, 7 July 2008.
US Market stumbles as financial sector sinks
Dow was up by 100 points earlier in day but ends in red though crude prices retreat
After a full day of whipsaw trading, US Market ended with losses today, Monday, 07 July, 2008. Market started the day with strong gains. But it failed to hold on to the same. Oil prices dropped drastically but the same did not come to any relief. A lack of concerted leadership during trading contributed to the broad-based declines. Financials were the worst performer yet again.
After being up by almost 100 points earlier during the day, The Dow Jones industrial Average was also down by more than 100 points at one point of time. Finally, it ended the day with a loss of 56.58 points at 11,231.96. The Nasdaq Composite Index, finished lower by 2 points at 2,243. S&P 500 finished lower by 10.3 points at 1,252.67.
Seventeen out of thirty Dow components ended in the red today. Merck and Walt Disney were a couple of main laggards. Both the stocks plummeted after being downgraded at different firms.
The financial sector came under severe pressure today after Fannie Mae and Freddie Mac were two notable laggards in the sector. The two stocks encountered selling pressure on news that accounting changes could force the companies to bring off-balance sheet assets on to their books, thus requiring large capital raises. Both the stocks fell by 16% to 17%.
Corporate news dominated Wall Street today. First, Microsoft is reported to be willing to enter discussions with Yahoo! if Yahoo replaces its board of directors. Next, General Electric's NBC Universal is joining Blackstone Group and Bain Capital to purchase The Weather Channel for $3.5 billion. Also, Merrill Lynch might be planning to sell its stakes in holdings like Bloomberg and BlackRock soon which would generate cash to help offset potential write-downs and adjustments.
Crude prices fell for the first time in four days today. Prices dropped by more than $6 earlier in the day today but then pared some of their losses and closed lower by more than $3 at the end. The stronger dollar and Iran’s nuclear programme related comments during the weekend affected crude prices. Crude-oil futures for light sweet crude for August delivery today closed at $141.37/barrel (lower by $3.92/barrel or 2.7%) on the New York Mercantile Exchange. Prices fell by almost $6 to $139 during intraday trading. Last week, prices gained $5.08 (3.6%).
At the currency markets on Monday, the U.S. dollar had began the week higher against major currencies aided by a firmer tone in equity markets, a retreat in oil prices and reluctance to sell the greenback in the midst of the meeting of the Group of Eight world leaders in Japan. But the dollar lost its gains in mid-day trading after the equities market turned south, spooked by news of possible capital raising by U.S mortgage giants Freddie Mac and Fannie Mae. The dollar index which measures the greenback against a trade-weighted basket of currencies fetched 72.668, down from 73.104 earlier in the day.
Volume on the New York Stock Exchange topped 1.5 billion shares, with declining issues running ahead of those advancing more than 2 to 1. On the Nasdaq, more than 1 billion shares traded, and decliners topped advancers 2 to 1.
For tomorrow, the economic report starts with the pending home sales report for May. The earnings calendar is marks Alcoa kicking off the second quarter after the close.
Market seen opening lower on global cues
Local shares are likely to be under pressure today, 8 July 2008, as weak global cues will weigh on sentiment. Talks of crude touching $200 at the G8 summit may dampen the sentiment further.
Italian Prime Minister Silvio Berlusconi said oil could reach $200 a barrel within two years and suggested that stock exchanges should increase margin deposits on the futures market, which now stands at 5%, which could curb speculative buying.
Crude oil for August delivery fell sharply by $3.92, to settle at $141.37 a barrel yesterday, 7 July 2008, on the New York Mercantile Exchange.
Sentiment may remain cautious ahead of the crucial International Atomic Energy Agency (IAEA) meeting with board of governors scheduled on 28 July 2008 to approve the India-specific safeguards agreement. The Manmohan Singh government is expected to notify the agreement with the IAEA secretariat in the second week of July. Singh will be meeting president George Bush in Japan to discuss the progress on the deal. The US president has been pressing Mr Singh hard to work out the deal.
Meanwhile, Prime Minister Manmohan Singh on Monday, 7 July 2008 said the UPA government will go through the remaining formalities of the nuclear deal and expressed full confidence that his government will last its full term.
Tracking declines in US equities, Asian markets took hit on the chin today, 8 July 2008. Asian markets were trading weak today, 8 July 2008. Shanghai Composite rose 1.11% or 30.90 points at 2,823.29. Hang Seng fell 1.42% or 310.08 points at 21,602.98, Taiwan's Taiwan Weighted slipped 1.85% or 135.56 points at 7,205.55, Singapore's Straits Times lost 0.93% or 27.21 points at 2,906.91 and South Korea's Seoul Composite was down 2.24% or 35.39 points at 1,544.33 and Nikkei plunged 1.78% or 238.18 points at 13,121.86.
US markets edged lower yesterday, 7 July 2008, on concerns that the top two mortgage providers would have to raise even more capital, eroding existing shareholders' stakes further. The Dow Jones industrial average lost 56.58 points, or 0.50%, to 11,231.96. The Standard & Poor's 500 index slipped 10.59 points, or 0.84%, to 1,252.31, and the Nasdaq Composite index dropped 2.06 points, or 0.09%, to 2,243.32.
Back home, the 30-share BSE Sensex rose 71.99 points or 0.54% at 13,525.99 and the broader based S&P CNX Nifty gained 14 points or 0.35% at 4,030 yesterday, 7 July 2008.
From a record high of 21,206.77 hit on 10 January 2008, Sensex has lost 7,680.78 points or 36.21%. It is down 6,761 points or 33.32% in calendar year 2008 so far.
As per the provisional figures on NSE, the foreign institutional investors (FII)'s sold shares worth Rs 439.57 crore, while domestic funds bought shares worth Rs 75.9 crore on 7 July 2008.
Foreign institutional investors (FIIs) were net buyers of Rs 866.58 crore in the futures & options segment on 7 July 2008. They were net buyers of index futures to the tune of Rs 634.41 crore and sold index options worth Rs 59.95 crore. They were net buyers of stock futures to the tune of Rs 271.75 crore and purchased stock options worth Rs 20.38 crore.
Asian markets drop in initial session
Asian markets declined in the initial session of trade on Tuesday (July 08). The benchmark index touched six-month low on concern that financial companies will take more write-down related to credit-market losses.
Mitsubishi UFJ Financial Group declined after analysts said the two largest U.S. mortgage-finance companies may need to raise extra capital.
Japan`s largest oil explorer, Inpex Holdings and Woodside Petroleum declined after crude fell by almost USD 4 a barrel.
Japanese benchmark index Nikkei lost 238.18 points, or 1.78%, to trade at 13,121.86.
Hong Kong`s index Hang Seng lost 337.67 points, or 1.54% to trade at 21,575.39.
China`s Shanghai Composite rose 26.36 points, or 0.94%, to trade at 2,818.76
Taiwan`s index Taiex lost 125.91 points, or 1.72%, to trade at 7,215.20.
South Korea`s KOSPI declined 32.34 points, or 2.05%, to trade at 1,547.38.
Singapore`s Straits Times lost 26.19 points, or 0.89%, to trade at 2,907.93. (8.16 a.m., IST)
Grey Market Premiums
First Winners Ind. Ltd. 125 5 to 7
Lotus Eye Care Hospital 38 3 to 3.50
KSK Energy Venture 240 Discount
Somi Conveyor Belting 35 3 to 5
Birla Cotsyn (India) 15 to 18 Discount
Morning Call - July 8 2008
Market Grape Wine :
In House :
Nifty at a support of 3926 with resistance at 4075 and 4115 levels.
Cash: sell RNRL target 59 with S/L 68
Cash: Sell RPL below 166.75 target 157 with S/L 170.
Future: sell REL INFRA below 780target 740 with S/L 795.
Future: sell RPL below 166 target 150 with S/L 171.
Out House:
Markets at a support of 13113 & 13231 resistance at 13786 & 13595 levels .
Buy : Infy at dips
Buy : Suzlon at dips
Buy : Tisco at dips
Buy : LT at dips
Buy : Adalbs at dips
Buy : Sbin
Dark Horse : LT , Infy , Gujnre , Jpasso , Suzlon & Tisco
Weakness in global markets may weigh
US indices ended weak in yesterday's trades and tracking the same the Asian markets are also trading weak in morning trades, which may weigh on the local indices and thereafter the market could exhibit volatility during intra-day trades. However, the prevailing northbound journey and sharp fall in crude oil prices may add to the market advantage and help the sentiment turn positive. Among the domestic indices, the Nifty could test 4,065 and above this level may surge to 4,100, while on the downside it could slip to 4,000-3,960 levels. The Sensex has a likely support at 13,400 and may face resistance at 13,650.
US indices closed in negative territory on Monday with the Dow Jones dropped 57 points at 11,232, the Nasdaq fell 2 points to close at 2,243.
Among the Indian ADRs trading on the US bourses, VSNL was the major gainer by 9.26%, followed by Patni Computer up by 7.60%, ICICI Bank 2.12%, Tata Motors 2.70 and ICICI Bank 2.65% while Infosys, Wipro and HDFC Bank were up with steady gains. However, only Rediff & Dr Reddy slipped into the red.
Crude prices tumbled on Monday as the dollar gained strength and traders reacted to an apparent easing of Mideast tensions. The Nymex light crude oil for August delivery settled down $3.92 to close at $141.37 a barrel. In the commodity space, the Comex gold for August series declined $4.80 to settle at $928.80.
Pre Session Commentary - July 8 2008
The Indian Market is expected to have negative opening on the back of weak global cues as the US market gave up its initial gains despite of fall in crude oil prices and this led to the Asian market to trade on the back foot. Crude oil dropped by $3.92 to close at $141.37 per barrel on the New York Mercantile Exchange. Monday On Monday, the Indian market closed with gains after it pared back its earlier gains. Market opened on the firm note tracking positive cues from the Asian markets and receding political worries as SP is expected to support the UPA in Nuke Deal. Further, it continued the same but during final trading hours it surrendered earlier gains and after a struggle managed to close in green. BSE Sense closed above 13,500 points and NSE Nifty 4,000. From the sectoral front Oil & Gas and Pharma stocks were major sufferers of selling pressure while Metal, IT, Auto and Bank stocks were best performers as witnessed most of the buying in these baskets. The BSE Sensex closed higher by 71.99 points at 13,525.99 and NSE Nifty ended up by 14.00 points at 4,030.00. We expect that market may decline during the trading session.
US markets closed lower on financial worries and weak energy sector on Monday after the U.S. Independence Day long weekend. The Dow Jones Industrial Average (DJIA) closed lower by 56.58 points at 11,231.96 along with S&P 500 down by 10.59 points to close 1,252.31 and NASDAQ dropped by 2.06 points to close at 2,243.32.
Indian ADRs ended up. In technology sector, Patni Computers ended up by (7.90%) along with Satyam by (5.00%), Wipro by (0.69%) and Infosys by (0.23%). In banking sector, ICICI bank and HDFC bank gained (2.65%) and (0.06%) respectively. In telecommunication sector, MTNL ended without any change and Tata Communication advanced by (2.70%). Sterlite industries declined (0.75%).
Today the major stock markets in Asia are trading weak. Hang Seng index is trading lower by 310.08 points at 21,602.98 along with Japan’s Nikkei trading down by 238.18 points at 13,121.86 and Taiwan Weighted trading at 7,205.55 with a fall of 135.56 points.
The FIIs on Monday stood as net buyer in equity and in debt. The gross equity purchased was Rs3,008.90 Crore and the gross debt purchased was Rs2,083.80 Crore while the gross equity sold stood at Rs2,476.20 Crore and gross debt sold stood at Rs441.50 Crore. Therefore, the net investment of equity reported was Rs532.70 Crore and net debt was Rs1,642.30 Crore.
Today, Nifty has support at 3,848 and resistance at 4,096 and BSE Sensex has support at 13,072 and resistance at 13,764.
Trading Calls - July 8 2008
Nifty (4030) Sup 3950 Res 4075
Buy Colgate (371) SL 366
Target 381, 384
Buy Infosys (1801) SL 1780 Target 1845, 1850
Buy Satyam (481) SL 475
Target 492, 495
Sell PNB (386) SL 391
Target 376, 373
Sell RPL (166) SL 170
Target 158, 156
Bulls feel Left out!
Left to themselves, things always go from bad to worse.
The Left parties are likely to announce withdrawal of their support today. While this may be factored in, future events on the political front need to be watched. The key indices may have ended positive but bulls still appear to be lacking in confidence. Much of the action will be seen in New Delhi though. The Prime Minister has announced that the Government will approach the IAEA for India-specific safeguards agreement soon. The IAEA is to meet on July 28 to consider the India proposal. The Prime Minister also says that he is ready for a trial of strength in parliament and that elections will happen as per schedule.
This morning, cues from global markets are discouraging. US shares gave up most of their gains to end slightly lower. Asian markets are down 1-2.5% this morning, except for China. The bulls may take some heart from the fact that crude oil prices have cooled off marginally and key European indices gained almost 2% yesterday.
We expect the key Indian indices to fall at the opening bell. Overall, we see them staying choppy and rangebound ahead of the political developments immediately and quarterly results. The IT sector may hog the limelight as Infosys will declare its results on Friday and others will follow suit next week. The current weakness in the rupee may have some positive spin on IT shares. This morning, the Indian currency is trading at 43.32 versus the dollar against yesterday's close of 43.29.
Banks may be in focus today amid reports of SBI suffering big MTM loss. Reliance counters of course may continue to attract attention amid the ongoing row over MTN deal.
After hitting an intra-day high of 13,793, the Sensex lost altitude and ended just 0.5% higher yesterday. This only goes to reinforce the widely held view that the bulls are still not out of the woods and there may be some more pain on the horizon.
Among the other stocks, SpiceJet will be in action again amid reports that it has apparently spurned Vijay Mallya's buyout offer and will instead go for private placement with billionaire US investor Wilbur Ross. Siemens has won baggage handling contract worth Rs3bn for the Delhi International Airport. Cairn India may remain in the limelight as it has signed an agreement for exploration in Sri Lanka.
Shares of First Winner Industries Ltd. will be listed today.
FIIs were net sellers of Rs4.4bn (provisional) in the cash segment yesterday while local institutions poured in Rs759mn. In the F&O segment, the foreign funds were net buyers of Rs8.67bn. On Friday, the FIIs pumped in Rs5.33bn in the cash segment. Mutual Funds were net sellers of Rs659mn on the same day.
US shares erased most of the day's gains to end lower as trading resumed after an extended "Independence Day" weekend. Sentiment was hit by renewed worries that banks could suffer substantial further write-downs even as crude oil prices slipped by nearly $4 per barrel.
The rumors about Fannie Mae needing more capital seemed to be a big driver in pulling down the indices from the day's highs. That revived fears about the depth of the credit market crisis ahead of the first wave of second-quarter earnings reports.
Lehman Brothers said Fannie Mae and Freddie Mac - largest US providers of home-mortgage financing - may need to raise a combined $75bn in capital if new accounting rules go through.
After rising more than 100 points, the Dow Jones Industrial Average slipped 56.58 points, or 0.5%, to 11,231.96. The Nasdaq Composite Index finished almost unchanged at 2,243.32. The S&P 500 index lost 10.59 points, or 0.8%, to 1,252.31, extending its plunge from an October record high to 19.99%.
JPMorgan Chase and Bank of America slid, dragging the S&P 500 Financials Index to a five-year low. Yahoo! led gains in technology shares that limited the market's decline after Microsoft said it may revive talks to acquire the Internet giant.
Cautious comments from San Francisco Fed Bank president Janet Yellen kept worries about a weakening economy in the forefront. She warned that the downturn in the housing market and the credit crisis plaguing Wall Street could worsen before the economy recovers.
Stocks managed a comeback late in the session after the three major indices hit bear market levels - a decline of 20% off the recent highs. But the advance proved unsustainable, with stocks falling again into the close.
The selloff in oil prices did little to relieve worries about consumer spending and rising inflation. Instead, the lower oil prices caused oil services stocks to fall, dragging on the broader market.
Wall Street is gearing up for a new round of corporate earnings that kicks off on Tuesday when Dow component Alcoa reports its second-quarter results. GE, another Dow component, will report its results later this week.
Crude for August delivery fell more than $5 to below $140 a barrel on the New York Mercantile Exchange, as the dollar gained strength and traders reacted to an apparent easing of middle-east tensions. The contract settled at $141.37 a barrel, down $3.92 after falling as low as $139.50 a barrel.
In the bond market, Treasury prices rallied. The benchmark 10-year note slumped, lowering its corresponding yield to 3.90% from 3.97% on Thursday. In currency trading, the dollar rose versus the euro and gained against the yen. COMEX gold for August delivery fell $4.80 to settle at $928.80 an ounce.
European shares ended with strong gains as a sharp pullback in oil prices and a fall in the euro against the dollar gave sentiment a lift. The pan-European Dow Jones Stoxx 600 index rose 1.3% to 283.17. Germany's DAX 30 climbed 2% to 6,395.75, while the French CAC-40 advanced 1.8% to 4,342.59 and the UK's FTSE 100 closed up 1.9% to 5,512.70.
In the emerging markets, the Bovespa in Brazil was down 0.5% at 59,088 while the IPC index in Mexico gained 0.2% at 28,383. The RTS index in Russia was virtually flat at 2189 and the ISE National-30 index in Turkey jumped 2.3% to 42,403.
Markets barely managed to end the day on a positive note as bulls were unable to hold on to their early gains. After staying in positive terrain for major part of the day, bulls lost momentum as selling pressure in the Oil & Gas and Pharma stocks dragged the benchmark Sensex to slide from day’s high.
Stocks like Reliance Industries, Cairn India and Essar Oil were the major laggards reacting to reports that private oil companies may have to give up some of their profits to share the huge subsidy burden in the oil sector. However, there were media reporting that the oil minister was not aware of private companies’ subsidy sharing move.
Finally, the BSE benchmark Sensex closed at 13,525 adding a modest 71 points and the Nifty index added 14 points to close at 4,030.
Eicher Motors surged by over 3.5% to Rs250 after the company announced that it recorded a total sale of 2,677 Nos. of commercial vehicles during June 2008, tabbing YTD growth of 10%. While domestic sales tallied at 2,432 nos. of commercial vehicles, the total sales count also included 245 nos. of CVs, exported. The scrip touched an intra-day high of Rs258 and a low of Rs244 and recorded volumes of over 10,000 shares on BSE.
Pyramid Saimira Theatre declined by over 7% to Rs162 after the company said that the stake sale reports are speculative. Earlier, the stock hit an intra-day high of Rs195 on reports that the world’s largest theater chain, US-based Regal Entertainment Group, and other PE firms are planning to pick up a combined 14% stake in the company. The stock touched an intra-day high of Rs195 and low of Rs159 and recorded volumes of over 26,00,000 shares on NSE.
PSTL aims to have 1,000 theatres in six countries by the end of 2008 and Regal, one of the interested suitors, has close to 6,500 screens across the US. The deal is expected to be in the range of Rs2.5bn to Rs3bn.
Shares of Suzlon Energy gained 1% to Rs194 on expectations it will benefit from Tanti group's investments in China. The group’s unit formed a joint venture with Arcapita Bank BSC, to invest US$2bn for developing wind power farms in China.
Spice Tele edged higher by 0.5% to Rs73. The provider of cellular phone services, continued to hog the limelight as 282mn shares changed hands on BSE at Rs77.3 per share in the morning trades on Monday.
Idea Cellular purchased 282mn shares of Spice Communication from the open market. The company had made an open offer to the shareholders of Spice Communications for acquiring additional 20% stake in the company.
Cairn India declined by over 5.5% to Rs237, following reports that private oil companies may have to pay windfall profit tax. However, other private company stocks like Reliance Industries and Essar Oil are trading with smart gains.
According to reports, private oil companies may have to give up some of their profits to share the huge subsidy burden in the oil sector. Currently, the under recoveries are split by the Public Sector E&P companies like ONGC and Gail.
SpiceJet sky rocketed by over 21% to Rs30 after reports stated that Kingfisher Airlines Ltd. may acquire shares of the company in an all-cash deal. SpiceJet's shareholders are expected to get one share of a merged company with Kingfisher for every three shares owned reports stated. The scrip touched an intra-day high of Rs32 and a low of Rs26 and recorded volumes of over 63,00,000 shares on BSE.
There were reports stating that UB Group Chairman, Vijay Mallya is negotiating with Gulf-based fund Istithmar and UK-based Bhulo Kansagra family, who together hold 26.33% in the airline. Acquisition of their stake would trigger an open offer for another 20% from other share holders.
RCom has offered a deal under which the promoters will pick up 51% in MTN through a cash and share swap. (BS)
SBI may suffer Rs7bn MTM loss in first quarter this fiscal. (ET)
DLF plans to set-up Rs8bn venture capital fund to investment in equipment manufacturing and construction companies. (ET)
RIL and GAIL to apply for gas retail licence. (BS)
The JV between Daimler AG and the Hero Group, to set up a truck manufacturing facility near Chennai for an investment of Rs30bn. (BS)
Infosys invests AUD$1.9mn in the newly formed Smart Services Cooperative Research Centre (CRC). (FE)
NTPC-BHEL JV to invest Rs60bn in setting up new power equipment manufacturing facility. (ET)
Cairn India has signed the petroleum resources agreement with Sri Lanka for exploration licence to explore oil and natural gas in the Mannar Basin. (BL)
RIL gets Government approval for 800MW Raigad project. (FE)
Moser Baer to spin off its entertainment business into a new company valued at Rs2.5bn. (BS)
ACC sets up second wind power project in Rajasthan. (BS)
Niko a partner in RIL operated D-6 blocks in the KG basin seeks Government approval to raise US$550mn by pledging its stake. (ET)
Japan based Nomura Asset Management to pick up stake in LIC’s AMC unit. (ET)
Vedanta Aluminium (VAL) to expand capacity of its existing alumina refinery in Lanjigarh, Orissa, to 6mtpa from the current 1mtpa at an investment of around Rs70bn. (BS)
Pan Atlantic LLC, Dubai, will invest US$10mn in a SPV created by Sobha and Pan Atlantic to develop a residential township with a total built up area of 1.7mn sq. ft. in Hosahalli in Bangalore South. (BL)
Garware Offshore takes the delivery of PSV christened MV Mana at Leirvik. (FE)
Tech Mahindra eyes emerging markets for BPO business. (FE)
GMR Energy Ltd, a subsidiary of GMR Infra wants CEA to recommend relocation of plant. (FE)
NHPC turns down L&T JV proposal for building up hydroelectric power projects within and outside the country. (FE)
Akruti City plans to form a 50:50 JV with Pacific Alliance Group. (FE)
Hinduja Foundries Ltd plans to raise Rs2.5bn to support its capex program spread during the next 18 to 24 months. (BL)
Economic Front Page
Left parties to withdraw support to the Government by July, 10. (BS)
Pharma companies have approached government seeking a review of prices control on key brand. (ET)
Shipping Industry has asked the finance ministry to reduce service tax and FBT. (ET)
New Port SEZ norms to be floated soon. (ET)
The Government plans regulator for tea industry. (FE)
The textile ministry plans not to impose ban on cotton export.(FE)
The Government to curb export of fertiliser raw materials like sulphuric acid, phosphoric acid, rubber and cotton. (BS)
Cotton import duty to be cut from 14% to nil. (BS)
The Government has approved allocation of 23 coking and non-coking coal blocks to leading steel, cement and power producers. (BS)
Today's Pick - Sterlite Industries
We recommend a sell in Sterlite Industries India from a short-term perspective. It is evident from the charts of Sterlite Industries India that it has been on a long-term downtrend from its all-time high of Rs 1,140 (recorded in early December 2007). In early June 2008, the stock declined breaching the 50 and 200-day moving averages. Moreover, in the recent times, the stock tested the key support level Rs 700 and broke out by tumbling almost 8 per cent on July 3 with good volume. The daily and weekly relative strength indices are featuring in the bearish zone. In line with the stock price, the moving average convergence and divergence (MACD) is also declining in the negative territory. The medium-term down trend of the stock that commenced from Rs 950 level 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 565 in the approaching trading sessions. Traders with short-term perspective can sell the stock while maintaining stop-loss at Rs 653.
via BL
Bullion metals shave off earlier loss partly
Gold and silver prices fall for the day as the dollar strengthens
Pressured by the US dollar, bullion metals fell earlier today, Monday, 04 July, 2008. But then, dollar lost some ground and helped precious metals to shave off some of their losses. Crude prices falling today also led to lower bullion metal prices. The increase in energy costs generally increase demand for the precious metal as a hedge against inflation. Silver prices also fell.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies.
Comex Gold for August delivery fell $4.8 (0.51%) to close at $928.8 ounce on the New York Mercantile Exchange. Earlier during the day, it dropped to as much low as $916. Last week, it ended higher by $2.3 (0.3%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then.
The weakening dollar and higher global demand for raw materials have led to records this year for commodities including gold. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices.
Gold prices ended June, 2008 with a gain of 4.1%. The yellow metal ended second quarter with a marginal gain of 0.7% yesterday. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, for April, prices closed lower by 6.3%.
This year, gold prices have gained 10.7% till date against a 6% drop for the dollar against the euro. 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%.
Today, Comex silver futures for September delivery fell 45 cents (2.4%) to $17.92 an ounce. Silver has gained 20% in 2008 till date. It ended last week higher by 3.8%. For the second quarter, it gained a paltry 1.4%.
Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.
At the currency markets on Monday, the U.S. dollar had began the week higher against major currencies aided by a firmer tone in equity markets, a retreat in oil prices and reluctance to sell the greenback in the midst of the meeting of the Group of Eight world leaders in Japan. But the dollar lost its gains in mid-day trading after the equities market turned south, spooked by news of possible capital raising by U.S mortgage giants Freddie Mac and Fannie Mae. The dollar index which measures the greenback against a trade-weighted basket of currencies fetched 72.668, down from 73.104 earlier in the day.
During last week of June, Federal Reserve yesterday sharpened its focus on inflation, saying that the upside risks to inflation have increased. Fed held its target for short-term interest rates steady at 2%.
Since last September, Fed has axed interest rates seven times and brought it down to 2%. On the other hand, after keeping interest rates unchanged at 4% since June, 2007, ECB hiked the same to 4.25% last week.
In the crude market on Friday, crude for August delivery had dropped $5.79 earlier in the day to an intra-day low of $139.50 a barrel on New York Mercantile Exchange. But futures pared their losses and closed down $3.9 or 2.7%, to $141.37 a barrel.
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 lower by Rs 43 (0.33%) at Rs 12,986 per 10 grams. Prices rose to a high of Rs 13,007 per 10 grams and fell to a low of Rs 12,803 per 10 grams during the day’s trading.
At the MCX, silver prices for July delivery closed Rs 273 (1.1%) lower at Rs 25,256/Kg. Prices opened at Rs 25,451/kg and fell to a low of Rs 24,875/Kg during the day’s trading.
Crude prices end lower for first time in four sessions
Prices drop by almost $6 earlier in the day but close more than $3 lower
Crude prices fell for the first time in four days today, Monday, 7 July, 2008. Prices dropped by more than $6 earlier in the day today but then pared some of their losses and closed lower by more than $3 at the end. The stronger dollar and Iran’s nuclear programme related comments during the weekend affected crude prices.
Crude-oil futures for light sweet crude for August delivery today closed at $141.37/barrel (lower by $3.92/barrel or 2.7%) on the New York Mercantile Exchange. Prices fell by almost $6 to $139 during intraday trading. Last week, prices gained $5.08 (3.6%).
Crude prices gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. It ended June 2008 higher by 9.9%. Prices are 105.5% higher than a year ago. For the year, crude is up by 44% till date.
At the currency markets on Monday, the U.S. dollar had began the week higher against major currencies aided by a firmer tone in equity markets, a retreat in oil prices and reluctance to sell the greenback in the midst of the meeting of the Group of Eight world leaders in Japan. But the dollar lost its gains in mid-day trading after the equities market turned south, spooked by news of possible capital raising by U.S mortgage giants Freddie Mac and Fannie Mae. The dollar index which measures the greenback against a trade-weighted basket of currencies fetched 72.668, down from 73.104 earlier in the day.
Against this backdrop, August reformulated gasoline fell 8.8 cents to $3.483 a gallon and August heating oil dropped 13.6 cents to $3.97 a gallon. And August natural-gas futures fell 60 cents to $12.977 per million British thermal units
At the MCX, crude oil for July delivery closed at Rs 6,160/barrel, lower by Rs 71 (1.1%) against previous day’s close. Natural gas for July delivery closed at Rs 566.6/mmbtu, lower by Rs 19.9/mmbtu (3.4%).
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