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Monday, July 21, 2008
BSE Bulk Deals to Watch - July 21 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
21/7/2008 532919 ALLIED COMP NANDIT VIPUL RAJA S 100000 19.00
21/7/2008 590059 BIHAR TUBES ELARA INDIA OPPORTUNITIES FUND LTD B 50000 159.97
21/7/2008 590059 BIHAR TUBES SECUROCROP SECURITIES INDIA P B 125555 159.96
21/7/2008 590059 BIHAR TUBES GEOMATRIX HK LTD AC DUMAURITIUS CAPITAL LTD S 150000 160.00
21/7/2008 523890 DS KULKARNI CHARLEMAGNE CAPITAL IOM LTD B 424294 90.15
21/7/2008 523890 DS KULKARNI MAGNA GLOBAL EMERGING MKTS FUND S 424294 90.15
21/7/2008 500132 EMPEE SUG CH EMPEE HOLDINGS LTD B 326143 8.67
21/7/2008 500132 EMPEE SUG CH EMPEE DISTILLERIES LIMITED S 285041 8.66
21/7/2008 532876 EVERONN SYS BENOY DEVELOPERS PRIVATE LTD B 100000 427.00
21/7/2008 532876 EVERONN SYS ASHOKKUMAR RUIA S 103250 426.89
21/7/2008 532996 FIRST WIN H.K. STOCK SERVICES PVT LTD S 96850 124.64
21/7/2008 531137 GEMSTONE INV BHAVESH PRAKASH PABARI S 44000 21.00
21/7/2008 500151 GTC INDUSTRI L AND T FINANCE LIMITED S 105000 118.35
21/7/2008 524330 JAYANT AGRO SHASHIKANT A PATEL S 150000 51.75
21/7/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD B 96851 20.95
21/7/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD S 87602 20.64
21/7/2008 512559 KOHINORFOODS SUNSTAR OVERSEAS LTD. B 941000 117.34
21/7/2008 512559 KOHINORFOODS DEUTSCHE BANK AG LONDON CB AC S 900000 117.45
21/7/2008 532387 PRITISHN COM ARTINVEST INDIA PVT. LTD. B 74564 33.25
21/7/2008 532387 PRITISHN COM GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD S 79786 33.30
21/7/2008 506618 PUNJAB CHEM DHANLAXMI COTEX LTD B 50000 235.47
21/7/2008 506618 PUNJAB CHEM SHRIPAL SHARES AND SECURITIES LIMITED S 25115 235.34
21/7/2008 506618 PUNJAB CHEM JITENDRA MEHTA S 25000 235.00
21/7/2008 500355 RALLI INDIA FIDELITY TRUSTEE COMPANY PRIVATE LIMITED AC FIDELITY EQUITY FUND B 200000 407.00
21/7/2008 500355 RALLI INDIA PRUDENTIAL I.C.I.C.I. MF TRUST LTD DISCOVERY FUND S 200000 407.00
21/7/2008 513583 SBT INTERN KAPIL PURI B 150000 13.50
21/7/2008 526049 SHRILAKSHMI PRARTHANA TARUNKUMAR BRAHMBHATT S 136000 90.36
21/7/2008 524129 VINYL CHEM STANDARD SEC AND INVST INTER LTD B 154725 11.13
21/7/2008 524129 VINYL CHEM STANDARD SEC AND INVST INTER LTD S 143725 10.83
21/7/2008 507410 WALCHAND IN OLSSON HOLDINGS INC S 174500 255.02
NSE Bulk Deals to Watch - July 21 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
21-JUL-2008,FIRSTWIN,First Winner Industries L,CHOKHANI SECURITIES LTD,BUY,94990,116.53,-
21-JUL-2008,FIRSTWIN,First Winner Industries L,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,93271,117.39,-
21-JUL-2008,FIRSTWIN,First Winner Industries L,INNOVATE SECURITIES PVT LTD.,BUY,990,118.25,-
21-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,BUY,289310,118.73,-
21-JUL-2008,FIRSTWIN,First Winner Industries L,VIPUL PANNALAL SHAH,BUY,142557,107.38,-
21-JUL-2008,HINDDORROL,Hindustan Dorr-Oliver Ltd,KARAN MEHTA,BUY,200000,81.88,-
21-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,PRASHANT JAYANTILAL PATEL,BUY,201639,38.21,-
21-JUL-2008,MAXWELL,Maxwell Industries Ltd.,KAPIL JAYKUMAR PATHARE,BUY,600000,14.35,-
21-JUL-2008,NICCO,Nicco Corporation Limited,KARAN MEHTA,BUY,520000,13.00,-
21-JUL-2008,PUNJABCHEM,Punj Chem & Crop Prot Ltd,DHANLAXMI COTEX LTD.,BUY,50000,235.20,-
21-JUL-2008,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,BUY,143208,136.07,-
21-JUL-2008,SB&TINTL,SB&T International Ltd,PURI KAPIL,BUY,150000,13.50,-
21-JUL-2008,VINYLINDIA,Vinyl Chemicals (India) L,STANDARD SECURITIES & INVESTMENT INTERMEDIATES LIMITED,BUY,148785,11.11,-
21-JUL-2008,FIRSTWIN,First Winner Industries L,CHOKHANI SECURITIES LTD,SELL,94990,117.10,-
21-JUL-2008,FIRSTWIN,First Winner Industries L,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,93271,117.54,-
21-JUL-2008,FIRSTWIN,First Winner Industries L,INNOVATE SECURITIES PVT LTD.,SELL,100000,106.25,-
21-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,SELL,289310,119.04,-
21-JUL-2008,FIRSTWIN,First Winner Industries L,VIPUL PANNALAL SHAH,SELL,142557,124.11,-
21-JUL-2008,GTCIND,GTC Industries Ltd,L&T FINANCE LIMITED,SELL,101747,119.68,-
21-JUL-2008,HINDDORROL,Hindustan Dorr-Oliver Ltd,ANJANA PROJECTS LTD,SELL,200000,81.88,-
21-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,KAMALABEN A. THAKKAR,SELL,125000,38.34,-
21-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,PRASHANT JAYANTILAL PATEL,SELL,201639,38.22,-
21-JUL-2008,MAXWELL,Maxwell Industries Ltd.,PRASHANT JAIPAL REDDY,SELL,600000,14.35,-
21-JUL-2008,NICCO,Nicco Corporation Limited,ANJANA PROJECTS LTD,SELL,520000,13.00,-
21-JUL-2008,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,SELL,150908,136.26,-
21-JUL-2008,VINYLINDIA,Vinyl Chemicals (India) L,STANDARD SECURITIES & INVESTMENT INTERMEDIATES LIMITED,SELL,148785,11.39,-
Post Market Commentary - July 21 2008
The domestic market ended the day in positive territory after showing a little volatility during trading session. Investors were taking calculative steps during the session due to political worries, as there will be vote of confidence in parliament tomorrow, which will decide UPA’s continuation as a government. Indian market opened higher on the back of positive cues from the Asian markets but pared some of its gains soon after the firm start and later gathered the momentum to close with good gains due to selective buying in key stocks gathered the momentum during final trading hours, which led the market to close in green. The BSE Sensex ended above 13,800 level and NSE Nifty closed above 4,100 mark. From the sectoral front, the Bank and Pharma indices closed with a gain of more than 3% after. Along with this Reality, Metal and Oil & Gas stocks also witnessed buying in these baskets. However, Capital Goods and Consumer Durables stocks were major sufferers of negative sentiment. The market breadth was negative as 1169 stocks closed in green while 1362 stocks closed in red and 85 stocks remained unchanged.
The BSE Sensex closed higher by 214.64 points at 13,850.04 and NSE Nifty ended up by 67.25 points at 4,159.50. The BSE Mid Caps closed with gains of 17.60 points at 5,256.99 while Small Cap ended with loss of 17.91 points 6,437.98. The BSE Sensex touched intraday high of 13,878.88 and intraday low of 13,581.19.
Gainers from the BSE are Cipla Ltd (5.20%), Ranbaxy Lab (4.74%), NTPC Ltd (4.70%), DLF Ltd (8.44%), ICICI Bank Ltd (4.29%), Maruti Suzuki (3.92%), HUL (3.76%), JP Associates (3.74%), SBI (3.67%) and Reliance Com Ltd (2.62%).
Lossers from the BSE are Satyam Computer (4.14%), Ambuja cement (2.17%), BHEL (1.56%), L&T Ltd (1.26%) and Bharti Airtel (0.44%).
The BSE Banking index closed higher by 239.82 points at 6,428.71. Major gainers are Bank of Baroda (6.95%), Union Bank (6.16%), Bank of India (6.11%), Indian Overseas Bank (5.95%), HDFC Bank Ltd (4.78%), Punjab Natioanl Bank (4.57%), and ICICI Bank Ltd (4.29%).
The BSE Pharma index gained 120.88 points to close at 4,111.73. Major gainers are Sun Pharma (5.30%), Cipla Ltd (5.20%), Ranbaxy Lab (4.74%), Glenmark Pharma (3.88%), Dishman Pharma (3.79%) and Orchid Chem (3.14%).
The BSE Reality index ended up by 114.04 points at 4,784.28. As Housing Development (7.80%), Indiabull Real (5.24%), Anant Raj (4.78%), Unitech Ltd (2.28%), Purvankara (1.49%), DLF Ltd (1.39%), and Ansal Infra (1.23%) closed in positive territory.
The Metal index closed up by 97.85 points at 11,766.24. Gainers are Nalco (8.27%), Steel Authority (2.36%), Sterlite In (1.31%), Tata Steel (0.99%), Jindal Stain (0.70%), and Jindal Steel (0.50%).
The Oil & Gas index ended up by 77.12 points at 9,309.16. As Reliance (1.92%), ONGC (1.34%) and Reliance Petroleum (0.39%) closed in positive territory.
The BSE Capital Goods index lost 83.65 points to close at 11,062.86. Major lossers are Kirloskar br (7.69%), Bharat Elect (2.53%), Alstom proje (2.41%), Crompton Greaves (1.86%), Jyoti Struct (1.79%) and BHEL (1.56%).
Sensex gains on positive global cues
The market attracted considerable buying interest for the third session in a row on firm global cues and gained nearly 200 points in early trades. Sensex resumed with a huge positive gap of 147 points at 13,782 and the market was range-bound with a positive bias, but the index lost some ground in the mid-noon trades to touch the day's low of 13,581, down 54 points from yesterday's close. The market however regained its lost momentum towards the final hour of the session on hectic upsurge in banking, heavyweight and HC stocks, but profit booking at close led Sensex shed its gains and end the session at 13,850, up 215 points. The Nifty gained 67 points to close at 4,160.
The breadth of the market was negative. Of the 2,615 stocks traded on the BSE 1,368 stocks declined, 1,163 stocks advanced and 84 stocks ended unchanged. Among sectoral indices, the BSE Bankex notched up 3.88% at 6,428.71 followed by the BSE HC index (up 3.03% at 4,111.73), while the BSE Realty index and the BSE Auto index were up 1-2%.
Most of the index heavyweights received considerable buying interest. Cipla soared 5.20% at Rs226.45, HDFC Bank rose 4.78% at Rs1,082.95, Ranbaxy Laboratories was up 4.74% at Rs458.20, National Thermal Power Corporation gained 4.70% at Rs181.45 and ICICI Bank moved up 4.29% at Rs644.10. Among the other major gainers Maruti Suzuki India shot up by 3.92% at Rs648.20, Hindustan Unilever jumped 3.76% at Rs227.95, Jaiprakash Associates added 3.74% at Rs166.55, State Bank of India gained 3.67% at Rs1,347.45, Reliance Communications moved up by 2.62% at Rs446.60 and Tata Consultancy Services was up 2.33% at Rs813.45. However, Satyam Computer Services slipped 4.14% at Rs367.10 and Ambuja Cement fell 2.17% at Rs81 while Bharat Heavy Electrical Ltd, Larsen & Toubro, Bharti Airtel and Tata Motors inched marginally lower.
Banking stocks notched up significant gains during the day. Bank of Baroda surged 6.95% at Rs230.95, UBI scaled up 6.16% at Rs122.30, Bank of India rose 6.11% at Rs272.45, Indian Overseas Bank jumped 5.95% at Rs83.75, HDFC Bank added 4.78% at Rs1,082.95, Punjab National Bank gained 4.57% at Rs460.60 and Oriental Bank was up 3.06% at Rs139.65.
Over 1.33 crore IDFC shares changed hands on the BSE followed by Reliance Natural Resources (0.88 crore shares), Reliance Petroleum (0.64 crore shares), IFCI (0.61 crore shares) and First Winner Industries (0.59 crore shares).
Value wise, Reliance Capital registered a turnover of Rs245 crore on the BSE followed by Reliance Industries (Rs204 crore), Larsen & Toubro (Rs196 crore), Reliance Communications (Rs139 crore) and IDFC (Rs128 crore).
Market shrugs off political uncertainty
The market notched decent gains amid intra-day volatility, extending its winning streak to third straight trading session ahead of the government's trust vote in parliament to be held on Tuesday, 22 July 2008. A strong rally in Asian stocks lifted the investor sentiment. Healthcare pivotals were in demand. Banking stocks notched up modest gains even as capital goods shares declined.
Prime Minister Dr Manmohan Singh today, 21 July 2008, morning moved the confidence motion in Lok Sabha. Earlier, Dr Singh asserted that his government will win the vote of confidence
The 30-share BSE Sensex gained 214.64 points or 1.57% at 13,850.04. At day’s high of 13,878.88, the index gained 243.48 points in the mid-afternoon trade. The index shed 54.21 points at the day’s low of 13,581.19, it hit in the early trade.
The broader based S&P CNX Nifty advanced 67.25 points or 1.64% at 4159.50. Nifty July 2008 futures were at 4164, at a premium of 4.5 points as compared to spot closing.
As per provisional data released by the stock exchanges after trading hours, foreign funds today, 21 July 2008, sold shares worth a net Rs 62.22 crore. Domestic funds sold shares worth a net Rs 230.96 crore.
The BSE Mid-Cap index was up 0.34% at 5,256.99, while the BSE Small-Cap index was down 0.28% at 6,437.98. Both these indices underperformed the Sensex.
The market breadth was weak on BSE with 1169 shares advancing as compared to 1362 that declined. 85 remained unchanged.
The BSE clocked a turnover of Rs 4387 crore as against Rs 5,330.45 on Friday, 18 July 2008. NSE's futures & options (F&O) segment turnover was Rs 43942.21 crore, which was lower than Rs 52794.98 crore on Friday, 18 July 2008.
Sensex has risen 1274.24 points or 10.1% in last three trading sessions from its close of 12575.80 on 16 July 2008. Sensex is down 6436.95 points or 31.72% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 7356.73 points or 34.69% away from its all-time high of 21,206.77 struck on 10 January 2008.
Coming back to today's trade, the top gainers from the Sensex were Cipla (up 5.20% at Rs 226.45), HDFC Bank (up 4.78% at Rs 1082.95), Ranbaxy Laboratories (up 4.74% at Rs 458.20), NTPC (up 4.70% at Rs 181.45), and Maruti Suzuki (up 3.92% at Rs 648.20).
Top Sensex losers were, Satyam Computer (down 4.14% at Rs 367.10), Ambuja Cements (down 2.17% at Rs 81), Bharat Heavy Electricals (down 1.56% at Rs 1506.45), Larsen & Toubro (down 1.26% at Rs 2513.05), Bharti Airtel (down 0.44% at Rs 798.45).
India’s second largest listed telecom services provider by sales Reliance Communication rose 2.62% to Rs 446.60, after it called off tie-up talks with South Africa's MTN Group, Africa's biggest mobile phone group, citing legal issues.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries rose 1.92% to Rs 2,153.30.
India’s second largest software exporter by sales Infosys Techologies rose 0.88% to Rs 1,561.80.
Banking shares were in demand. Bank of Baroda (up 6.95% at Rs 230.95), Union Bank of India (up 6.16% at Rs 122.30), Punjab National Bank (up 4.57% at Rs 460.60), State Bank of India (down 3.67% at Rs 1,347.45), and Axis Bank (up 1.57% at Rs 697.60), rose. The BSE Bankex outperformed the Sensex, rising 3.88% at 6,428.71.
India’s largest private sector bank by assets ICICI Bank rose 4.29% to Rs 644.10.
Capital goods shares declined. Kirloskar Brothers (down 7.69% at Rs 154.85), Bharat Electricals (donw 2.53% at Rs 1,025.80), Cromton Greaves (down 1.86% at Rs 224.50), and Thermax (down 1.01% at Rs 382.70), declined. The BSE Capital Goods index underperformed the Sensex, falling 0.75% to 11,062.86.
Infrastructure Development Finance Company (IDFC) slumped 14.81% to Rs 93.45 on a huge volume of 1.33 crore shares on BSE. The stock slumped on concerns it may have to raise additional capital of $250 millionl. A central bank requirement for finance firms to increase capital to 15% of assets, from 10%, will force IDFC to sell stock, Morgan Stanley said in a note. As per reports, ratings companies have asked IDFC to maintain its leverage ratio at five times its capital if it wants to keep its triple A credit rating.
Smart cards maker Bartronics India spurted 9.95% to Rs 171.90 after posting 220.37% surge in net profit to Rs 15.27 crore on 165.71% increase in total income to Rs 679.32 crore in Q1 June 2008 over Q1 June 2007.
Mortgage lender LIC Housing Finance soared 8.61% to Rs 257.35 after it reported 72.74% growth in net profit to Rs 104.66 crore on 34.68% rise in total income to Rs 622.01 crore in Q1 June 2008 over Q1 June 2007.
Farm vehicles maker Punjab Tractors advanced 10.98% to Rs 221.85 after posting 580% surge in net profit to Rs 22.44 crore in Q1 June 2008 over Q1 June 2007.
Reliance Capital clocked the highest turnover of Rs 245.94 crore on BSE. Reliance Industries (Rs 205.07 crore), Larsen & Toubro (Rs 196.58 crore), Reliance Communication (Rs 139.72 crore), and IDFC (Rs 128.12 crore), were the other turnover toppers on BSE in that order.
IDFC reported a highest volume of 1.33 crore shares on BSE. Reliance natural Resources (88.94 lakh shares), Reliance Petroleum (64.81 lakh shares), IFCI (61.55 lakh shares), and First Winner Industries (59.87 lakh shares), were the other volume toppers on BSE in that order.
European markets, which opened lower, turned positive as the session proceeded. Key benchmark indices in UK, Germany and France were up by between 0.17% to 0.89%.
Asian stocks rose sharply on Monday, 21 July 2008, as concerns about the global impact of a weak US financial sector eased after Citigroup, the largest US bank on Friday, 18 July 2008, reported a second-quarter loss of $2.5 billion, which was smaller than expected. Key benchmark indices in Hong Kong, China, South Korea, Singapore and Taiwan were 2.51% to 3.97%. Markets in Japan were closed for a public holiday.
US stocks finished mixed on Friday, 18 July 2008. Favorable results from No. 1 US bank Citigroup and technology leader IBM drove the Dow Jones Industrial Average higher, but the Nasdaq fell on disappointing results from tech icons Google and Microsoft. The Dow closed up 49.91 points, or 0.44%, at 11,496.57. The Standard & Poor's 500 Index added 0.34 points, or 0.03%, at 1,260.66. The Nasdaq Composite Index fell 29.52 points, or 1.28%, at 2,282.78.
Crude prices edged up on Monday, 21 July 2008 but remained below $130 a barrel as talks between world powers and nuclear ambitious Iran, the fourth largest oil exporter, proved inconclusive.
The government is seeking a vote of confidence in parliament in a special two-day session of the parliament starting today after it was reduced to minority following withdrawal of support of Left parties early this month. Voting will take place tomorrow.
Media reports suggest that the government has wafer-thin edge of winning the trust vote. If the government wins the confidence vote it will continue to be in power. If it the government loses the trust vote, the president could ask the prime minister to continue in power as a caretaker government. The Election Commission of India will then fix a date and mid-term polls will be held.
Another possibility in case the government loses the trust vote is that the opposition may try to form an interim government before the scheduled May 2009 election. However, this is an unlikely scenario given that the Bharatiya Janata Party (BJP) has said it would prefer elections if the government falls
A section of the market reckons that the government may push forward economic reforms if it survives the vote of confidence in parliament. There has been a virtual halt in reforms process in the last four years due to strong opposition to reforms from Left parties. Left parities had stalled privatisation of state-run firms, pension reforms, higher foreign limits in insurance and more liberal norms for foreign bank
Bullion metals try to stay steady
Gold and silver prices drop on the last day of the week but manage marginal gains
Strength in the US dollar weighed on bullion metals on Friday, 18 July, 2008. Lower crude price also added to the impact further. Going economic concerns about the current health of the US economy had been increasing the metal’s demand as a safe asset against the rising inflation in recent times. Silver prices fell for the day.
Comex Gold for August delivery fell $12.7 (1.3%) to close at $958 ounce on the New York Mercantile Exchange. It fell to a low of $950 during intra day trading. For the week, it ended marginally lower by $2.6. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then.
Today, Comex silver futures for September delivery fell 53 cents (2.8%) to $18.2 an ounce. Silver has gained 23.8% in 2008 till date. For the second quarter, it gained a paltry 1.4%.
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.
At the currency markets on Friday, the greenback was modestly higher buoyed by not-as-bad-as-expected results from Citigroup but it remained within recent ranges. The dollar index a measure of the U.S. unit against a trade-weighted basket of currencies, gained 0.2% to 72.18.
In the crude market on Friday, crude-oil futures ended the week trading down for a fourth straight session, with the benchmark contract suffering its biggest weekly loss of $16.20, on continued concerns that weaker economic growth will cut into oil demand. Prices closed at $128.88/barrel today, lower by 41 cents.
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 and oil has climbed 42% and 82% since the past one year.
As a safe-haven investment, gold tends to benefit when geopolitical tensions escalate as it did last week when Iran test fired missiles, including one that's capable of reaching its regional rival Israel.
Crude prices register marginal drop
Prices give up more than 11% during the course of the week
Crude oil prices dropped for fourth straight day on Friday, 18 July, 2008 but on that day it ended marginally lower. With Friday’s fall crude gave up almost $16.5 in four sessions. Prices plunged once again on economic worries surrounding the US economy and also after government data earlier during the week showed a surprise increase in U.S. petroleum inventories last week.
Crude-oil futures for light sweet crude for August delivery closed at $128.88 /barrel (lower by $0.43/barrel or 0.3%) on the New York Mercantile Exchange. Earlier in the day it rose to $130.8. For the week, prices coughed up $16.5 (11.2%). It's now 12.5% lower than the $147.27 record high hit last Thursday.
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 75% higher than a year ago. For the year, crude is up by 37% till date.
At the currency markets on Friday, the greenback was modestly higher buoyed by not-as-bad-as-expected results from Citigroup but it remained within recent ranges. The dollar index a measure of the U.S. unit against a trade-weighted basket of currencies, gained 0.2% to 72.18.
EIA reported earlier during the week on Wednesday, 16 July that U.S. crude inventories rose 3 million barrels to stand at 296.9 million barrels in the week ended 11 July. Gains in U.S. crude inventories got a helping hand from increased imports. Daily crude imports averaged nearly 10.8 million barrels last week, up 1.2 million barrels from a week earlier. With the weekly gain of 3 million barrels, U.S. crude inventories were still near the lower boundary of the average range for this time of year.
EIA also reported that gasoline supplies rose by 2.4 million barrels, and distillate stocks gained by 3.2 million barrels. Over the last four weeks, U.S. motor gasoline demand averaged 9.3 million barrels per day, down by 2.1% from the same period last year. U.S. refineries operated at 89.5% of their operable capacity last week, up from the previous week's 89.2%.
In its monthly report issued earlier during the week, OPEC lowered its forecast for world oil-demand growth for 2008 to 1.03 million barrels a day, which represents a decline of 70,000 barrels from its previous estimate. Global oil demand this year is expected to average 86.81 million barrels a day. Earlier this month, the Energy Information Administration projected that U.S. petroleum consumption will shrink by 400,000 barrels a day in 2008, 38% more than EIA's June projection of a decline of 290,000 barrels.
Against this backdrop, August reformulated gasoline gained slightly to end at $3.17 a gallon, and August heating oil fell 1.3% to $3.69 a gallon.
Natural gas for August delivery rose 0.3% to $10.57 per million British thermal units. A day earlier, natural gas fell the most in nearly a year, reaching a three-month low, after a government report showed U.S. supplies rose last week more than expected. EIA had that stockpiles for the week ended 11 July rose 104 billion cubic feet, to 2.312 trillion against an expected rise of 88 billion cubic feet
Pre Session Commentary - July 21 2008
The Indian Market is expected to have positive opening on the back of strong global cues as Asian markets are trading higher and fall in crude oil prices. On Friday, the Indian market closed in with handsome gains. The domestic market opened in positive territory, but was not able to sustain the same momentum and was trading flat till afternoon. Further soon it bounced back and continued to gain ground till the end of session on significant buying over the counters. The BSE Sensex ended above 13,600 level with gain of more than 3.5% and NSE Nifty closed above 4,090 with increase of more than 3.67%. From the sectoral front, the Bank index surged to close with gains of more than 8%. The Capital Goods, Oil and Gas and Realty index also followed the rally to post good buying. However, the IT and Metal index remained out of favor. The BSE Sensex closed higher by 523.55 points at 13,635.40 and NSE Nifty ended up by 145.05 points at 4,092.25. We expect that the market may extend its gains during the trading session.
On Friday, the US market was closed mixed spending entire session in red. Technology companies'' earnings were disappointing for markets whereas financial companies reported better than expected results as credit fears eased following lower than expected quarterly loss reported by the top U.S. bank Citigroup.
The Dow Jones Industrial Average (DJIA) closed higher by 49.91 points at 11,496.57 along with S&P 500 index ended up by 0.36 points at 1,260.68 while NASDAQ closed lower by 29.52 points at 2,282.78.
Indian ADRs ended mixed. In technology sector, Patni Computers ended lower by (6.60%) along with Satyam by (6.05%), Infosys by (3.32%) and Wipro dropped by (2.70%). In banking sector, ICICI bank and HDFC bank gained (3.38%) and (1.92%) respectively. In telecommunication sector, Tata Communication ended up by (2.06%) while MTNL ended down by (2.16%). Sterlite industries decreased by (0.57%).
Today the major stock markets in Asia are trading in green. Hang Seng index is trading higher by 635.72 points at 22,509.91 along with Taiwan Weighted trading up by 208.15 points at 7,023.47. Japanese markets are closed today on account of holiday.
The FIIs on Friday stood as net buyer in equity. The gross equity purchased was Rs2,939.50 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,403.70 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs535.80 Crore and net debt was Rs0.00Crore.
Today, Nifty has support at 4,024 and resistance at 4,290 and BSE Sensex has support at 13,387 and resistance at 14,238.
Bias may remain positive
After witnessing the surge on Thursday the market is expected to make further headways on mix Asian markets, which are flat in current trades. With no clear direction to proceed, the market is witnessing the brief periods of optimism and threats. The market may see some short-term profit bookings in frontline stocks creating a volatility in the afternoon trades. Among the domestic indices, the Nifty could test higher levels of 4010 and may dip to 3890 on the downside. The Sensex has a likely support at 12900 and may face resistance at 13275.
Major US indices registered significant gains on Thursday with the Dow Jones flared up by 207 points at 11447, the Nasdaq moved up by 27 points to close at 2312.
Except MTNL all the Indian ADRs traded firm on the US bourses. ICICI Bank led the pack with gains of over 9% followed by HDFC Bank, Dr Reddy gaining over 4.53% and Patni Computer jumped 4.08%, while Satyam, Tata Motors, Infosys, VSNL, Wipro and Rediff jumped over 0.50-3% each.
Oil prices fell steeply on Thursday, extending a decline to a three-day record $15.89 a barrel, as natural gas prices tumbled and investors anticipated declining demand. Crude oil prices for August delivery fell $5.31 to close at $129.29 a barrel. In the commodity space, the Comex gold for June delivery gained $8 to settle at $970.70 an ounce.
Market may turn volatile after firm start
The market may extend solid gains registered in the past two trading sessions, tracking firm Asian equities. However political uncertainty ahead of the government seeking a vote of confidence in parliament will cap gains. Trading volumes are likely to remain low as institutional investors will remain on the sidelines ahead of the outcome of the confidence vote.
The government is seeking a vote of confidence in parliament in a special two-day session of the parliament starting today after it was reduced to minority following withdrawal of support of Left parties early this month. Voting will take place tomorrow. Media reports suggest that the government has wafer-thin edge of winning the trust vote.
A section of the market reckons that the government may push forward economic reforms if it survives the vote of confidence in parliament. There has been a virtual halt in reforms process in the last four years due to strong opposition to reforms from Left parties. Left parities had stalled privatisation of state-run firms, pension reforms, higher foreign limits in insurance and more liberal norms for foreign bank.
Asian stocks rose sharply on Monday, 21 July 2008, as concerns about the global impact of a weak US financial sector eased after Citigroup, the largest US bank on Friday, 18 July 2008, reported a second-quarter loss of $2.5 billion, which was smaller than expected. Key benchmark indices in Hong Kong, China, South Korea, Singapore and Taiwan were 1.4% to 3.4%. Markets in Japan were closed for a public holiday.
A sharp fall in crude prices from a record high of above $147 a barrel and a good amount of buying by foreign funds which had pressed heavy sales over the past few weeks, triggered a solid rebound on the bourses late last week. The barometer index BSE Sensex jumped 1059.60 points or 8.42% to 13,635.40 on Friday, 18 July 2008 from its close of 12575.80 on 16 July 2008
Crude prices edged up today from late New York levels but remained below $130 a barrel as talks between world powers and nuclear ambitious Iran, the fourth largest oil exporter, proved inconclusive.
Meanwhile, a cause for concern on the inflation front is the uneven distribution of rains in this monsoon season so far which has raised concerns about some kharif crops. Though the Indian Meteorological Department (IMD) has estimated the cumulative monsoon rainfall till 15 July 18, 2008, at 6% above normal, rains have been scanty in southern peninsula, Maharashtra and parts of Gujarat and Rajasthan.
With inflation hovering at highest level in more that 13 years, the Reserve Bank of India (RBI) is expected to further tighten the monetary policy.
As per provisional data released by stock exchanges after trading hours, foreign funds on Friday, 18 July 2008, bought shares worth a net Rs 408.21 crore. Foreign funds purchased worth a net Rs 535.80 crore on Thursday, 17 July 2008, data released by market regulator Securities & Exchange Board of India (Sebi) after trading hours on Friday, 18 July 2008, showed.
US stocks finished mixed on Friday, 18 July 2008. Favorable results from No. 1 US bank Citigroup and technology leader IBM drove the Dow Jones Industrial Average higher, but the Nasdaq fell on disappointing results from tech icons Google and Microsoft. The Dow closed up 49.91 points, or 0.44%, at 11,496.57. The Standard & Poor's 500 Index added 0.34 points, or 0.03%, at 1,260.66. The Nasdaq Composite Index fell 29.52 points, or 1.28%, at 2,282.78.
Morning Call - July 21 2008
Market Grape Wine :
In House :
Markets at a support of 4025 and 3950 with resistance at 4165 and 4215 levels.
Buy: REL CAPITAL above 1095 target1170 with S/L 1060.
Buy: APIL above 402 target 423 with S/L 391
Future: Buy IFCIbove 40 target 45 with S/L38
Future: Buy RELIANCE above 2100 target 2180 with S/L 2060
Out House:
Markets at a support of 13345 & 13031 levls with resistance at 13786 & 13996 levels .
Buy : RPL at dips
Buy : RIL
Buy : ITC at dips
Buy : LT at dips
Buy : DLF & GMR
Buy : SBIN & IciciBank at dips
Buy : JPasso
Buy : PFC & NTPC
Dark Horse : LNT , RIL , JPasso , Unitech ,Core , NTPC & Tisco
Today's Pick - NTPC
We recommend a buy in National Thermal Power Corporation (NTPC) from a short-term perspective. From the charts of NTPC, we note that it had been on a medium-term downtrend from its early May 2008 peak of Rs 203 to its late June trough of Rs 148. However, the stock found support at around Rs 150 (significant long-term support level) and has been on a short-term uptrend since early July.
On July 9, the stock conclusively penetrated the medium-term down trendline and its 21-day moving average by gaining 4 per cent. The stock decisively breached the 50-day moving average by jumping up by 5 per cent, accompanied with good volume on July 18.
The daily relative strength index (RSI) has entered in to the bullish zone and the weekly RSI is rising in the neutral region. The daily moving average convergence and divergence (MACD) is on the verge of entering in to the positive territory. Our short-term forecast for the stock is bullish.
We anticipate the stock’s current up move to continue until it hits our price target of Rs 195 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 164.
via BL
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