India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Tuesday, July 22, 2008
BSE Bulk Deals to Watch - July 22 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
22/7/2008 590059 BIHAR TUBES SECUROCROP SECURITIES INDIA P B 42497 163.38
22/7/2008 590059 BIHAR TUBES SECUROCROP SECURITIES INDIA P S 69764 157.26
22/7/2008 523489 CMM HOSPITAL. SHEETAL RAJESH JAIN B 38250 19.16
22/7/2008 532271 CYBERMAT INF S V ENTERPRISES B 2112269 4.83
22/7/2008 532271 CYBERMAT INF S V ENTERPRISES S 2168744 4.71
22/7/2008 532996 FIRST WIN MEENAL NITESH THAKUR B 115482 137.67
22/7/2008 532996 FIRST WIN MERIT CREDIT CORPORATION LTD S 105000 137.95
22/7/2008 532996 FIRST WIN MEENAL NITESH THAKUR S 115482 136.32
22/7/2008 531137 GEMSTONE INV PREM M PARIKH B 28000 22.54
22/7/2008 531137 GEMSTONE INV BHAVESH P PABARI B 28500 22.50
22/7/2008 531137 GEMSTONE INV BHAVESH PRAKASH PABARI S 90000 22.53
22/7/2008 500151 GTC INDUSTRI L AND T FINANCE LIMITED S 173000 104.90
22/7/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD B 84700 21.53
22/7/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD S 98367 20.94
22/7/2008 517522 RAJ GLO WIR MIDEX GLOBAL PVT. LTD. B 25000 91.30
22/7/2008 517522 RAJ GLO WIR SWASTIKA FIN LEASE LTD. S 25000 91.30
22/7/2008 513583 SBT INTERN KAPIL PURI B 300682 13.50
22/7/2008 513583 SBT INTERN CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD S 125000 13.50
22/7/2008 513583 SBT INTERN ABN AMRO BANK NV LONDON S 88264 13.50
NSE Bulk Deals to Watch - July 22 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
22-JUL-2008,FIRSTWIN,First Winner Industries L,ALPHA CHEMIE TRADE AGENCIES PVT LTD,BUY,93836,136.00,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,CHOKHANI SECURITIES LTD,BUY,91316,134.79,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,DIPAK RAMANBHAI RATHOD,BUY,101076,127.50,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,129884,135.31,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,PRASHANT JAYANTILAL PATEL,BUY,245334,138.07,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,S. J. SECURITIES LIMITED,BUY,100000,137.99,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,BUY,313536,135.90,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,YUVAK SHARE TRADING PVT LTD,BUY,191600,135.51,-
22-JUL-2008,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,BUY,3997910,39.99,-
22-JUL-2008,IFCI,IFCI Ltd.,CLEAN FINANCE & INVESTMENT LTD,BUY,5993807,39.96,-
22-JUL-2008,KHAITANLTD,Khaitan (India) Ltd.,MANOJ CHHAWCHHARIA,BUY,102000,36.14,-
22-JUL-2008,SB&TINTL,SB&T International Ltd,PURI KAPIL,BUY,305713,13.50,-
22-JUL-2008,TFCILTD,Tourism Finance Corp ,NEO SECURITIES LTD.,BUY,555344,14.72,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,ALPHA CHEMIE TRADE AGENCIES PVT LTD,SELL,93836,139.22,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,CHOKHANI SECURITIES LTD,SELL,91326,135.92,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,DIPAK RAMANBHAI RATHOD,SELL,41076,140.09,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,129884,135.44,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,MERIT CREDIT CORPORATION LTD,SELL,110000,137.86,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,PRASHANT JAYANTILAL PATEL,SELL,245334,137.65,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,S. J. SECURITIES LIMITED,SELL,125000,135.13,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,SCB CORPORATION PROP SUNIL BAMCHA,SELL,98219,139.64,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,SELL,313536,136.30,-
22-JUL-2008,FIRSTWIN,First Winner Industries L,YUVAK SHARE TRADING PVT LTD,SELL,191569,135.88,-
22-JUL-2008,GTCIND,GTC Industries Ltd,L&T FINANCE LIMITED,SELL,125875,107.34,-
22-JUL-2008,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,SELL,3982804,40.02,-
22-JUL-2008,IFCI,IFCI Ltd.,CLEAN FINANCE & INVESTMENT LTD,SELL,5993807,39.98,-
22-JUL-2008,JAYAGROGN,Jayant Agro Organics Ltd.,SHASHIKANT BHAI PATEL,SELL,100000,53.43,-
22-JUL-2008,KHAITANLTD,Khaitan (India) Ltd.,CD EQUI FINANCE PVT LTD,SELL,110000,36.14,-
22-JUL-2008,SB&TINTL,SB&T International Ltd,ABN AMRO BANK N.V. LONDON BRANCH,SELL,88264,13.50,-
22-JUL-2008,SB&TINTL,SB&T International Ltd,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,SELL,131742,13.50,-
22-JUL-2008,TFCILTD,Tourism Finance Corp ,Copthall Mauritius Investment Ltd,SELL,715000,14.76,-
22-JUL-2008,TFCILTD,Tourism Finance Corp ,NEO SECURITIES LTD.,SELL,50450,14.78,-
Post Session Commentary - July 22 2008
The domestic market continued its rally as it witnessed strong buying support from the sectoral heavy weights as it sensed that vote of confidence would be in favor of UPA so that they will stay as a government. Trust vote is fixed at 6PM today, which will decide that UPA’s continuance as a government or not. Indian market opened on flat note due to the political uncertainty but further it gathered the momentum to trade higher on hopes that the government will last its term. Due to the strong buying support over the counters, market extended its gains to close on a firm note. The BSE Sensex ended above 14,000 level and NSE Nifty closed above 4,200 mark. From the sectoral front, the FMCG and Power indices closed with a gain of more than 4%. Along with this huge buying was seen in Metal, Capital Goods, Bank and Oil & Gas stocks. However, Auto stock was only sufferer of negative sentiment. The market breadth was positive as 1849 stocks closed in green while 734 stocks closed in red and 74 stocks remained unchanged.
The BSE Sensex closed higher by 254.16 points at 14,104.20 and NSE Nifty ended up by 80.60 points at 4,240.10. The BSE Mid Caps closed with gains of 89.04 points at 5,346.03 and Small Cap ended up by 98.44 points 6,536.42. The BSE Sensex touched intraday high of 14,206.13 and intraday low of 13,798.18.
Gainers from the BSE are Reliance Infra (6.83%), Ranbaxy Lab (4.74%), BHEL (6.04%), ITC Ltd (6.00%), Wipro Ltd (5.93%), Cipla Ltd (4.99%), Reliance Com Ltd (4.83%), Tata Steel (4.32%), ACC Ltd (4.08%) and SBI (3.73%).
Lossers from the BSE are Maruti Suzuki (9.29%), JP Associates (4.26%), Bharti Airtel (2.47%), DLF Ltd (2.00%) and Tata Motors (1.94%).
The BSE Metal index closed up by 466.21 points at 12,232.45. Gainers are Sesa Goa Ltd (7.01%), Welspan Gujarat Sr (7.00%), Steel Authority (6.96%), Jindal Steel (6.34%), Tata Steel (4.32%), and Ispat Industries (3.43%).
The BSE Capital Goods index ended up by 343.44 points at 11,406.30. As Jyoti Struct (18.03%), Alstom Proje (7.43%), Areva (6.17%), BHEL (6.04%), Punj Lloyd (5.10%) and Thermax Ltd (4.79%) closed in positive territory.
The BSE Bank index closed higher by 200.27 points at 6,628.98. Major gainers are Kotak Bank (6.97%), Axis Bank (6.09%), Bank of Baroda (5.50%), SBI (3.73%), Union Bank (3.60%), Canara Bank (3.38%), and Indian Overseas Bank (3.22%).
The BSE Power index gained 103.44 points to close at 2,512.68. Major gainers are Reliance Power (7.90%), GVK Power (7.70%), Reliance Infra (6.83%), Tata Power (6.23%), Areva (6.17%) and BHEL (6.04%).
The BSE Oil & Gas index ended up by 73.15 points at 9,382.31. As Reliance Natural Resources (6.83%), Cairn India (4.43%), BPCL (4.40%), Reliance Pet (3.53%) and HPCL (2.71%) closed in positive territory.
The BSE Auto index lost 35.10 points to close at 3,628.06. Major lossers are Maruti Suzuki (9.29%), Bharat Forge (4.02%), Tata Motors (1.94%) and Escorts Ltd (1.92%).
Sensex ends firm above 14,100
The market remained buoyant on strong foreign institutional investor (FII) inflows and the index surged past the 14,200 mark in intra-day trades. Resuming on a negative note at 13,838, 12 points below its previous close of 13,850, Sensex turned positive and crossed the 14,000 mark in the afternoon. A positive close in most of the Asian indices triggered a major rally in heavyweight, fast moving consumer goods (FMCG), power, metal and banking stocks that helped Sensex surge to an intra-day high of 14,206. Sensex finally closed with gains of 254 points at 14,104, while Nifty added 81 points to close at 4,240.
The market breadth was extremely positive. Of the 2,657 stocks traded on the BSE, 1,849 stocks advanced, while only 734 stocks declined; 74 stocks ended unchanged. Among the sectoral indices, BSE FMCG gained 4.35% followed by BSE Power index, which was up 4.29%. BSE Metal index was up 3.96%, BSE Bankex index gained 3.12% and BSE capital goods (CG) index gained 3.10%. BSE public sector unit (PSU) index jumped by 2.50%, BSE information technology (IT) index moved up by 1.89% and BSE consumer durables (CD) index was up 1.66%. BSE TEck index, BSE Oil & Gas index, BSE health care (HC) and BSE Realty index also ended the day in positive. However, BSE Auto index closed in the red, down 0.96%.
Leading the upsurge in Sensex, Reliance Infra soared 6.83% at Rs846. BHEL advanced 6.04% at Rs1597.50, ITC rose 6% at Rs189.90, Wipro advanced 5.93% at Rs394.75, Cipla added 4.99% at Rs237.75, Reliance Communications jumped 4.83% at Rs468.15, Tata Steel gained 4.32% at Rs624.35 and ACC moved up 4.08% at Rs564.50. SBI, M&M, Hindalco, HDFC, ICICI Bank, TCS, L&T, Grasim and HUL also ended the day in positive territory with 2-3% each. However, Maruti Suzuki India dropped 9.29% at Rs587.95, JP Associates was down 4.26% at Rs159.45 while Bharti Airtel, DLF and Tata Motors also ended at lower levels.
On the volume front, over 2.21 crore Reliance Natural Resources Ltd (RNRL) shares changed hands on the BSE followed by IFCI (1.23 crore shares), Reliance Petroleum Ltd (RPL; 0.95 crore shares), Ispat Industries (0.72 crore shares) and JP Associates (0.65 crore shares).
Market gains smartly
The market ended with smart gains for the fourth consecutive session in a row on expectations the Congress-led United Progressive Alliance (UPA) government will win the trust vote in parliament. The market, which had turned volatile in the second half of trading session on account of weak global cues, firmed up in the late trade again on all round buying support. All the sectoral indices on BSE, barring the auto index, ended in green.
As per provisional data released by the stock exchanges after trading hours, foreign funds today, 22 July 2008, sold shares worth a net Rs 597.35 crore. Domestic funds bought shares worth a net Rs 261.61 crore.
Meanwhile, a high drama was witnessed in Lok Sabha today afternoon after market hours when Ashok Argal, a BJP MP from Morena walked into the well with a bag full of currency notes, which he claimed was given by a Samajwadi Party leader in return for his support in the trust vote. Amid the chaos, Deputy Speaker Charanjit Atwal adjourned the House briefly
The government is seeking the trust vote after the Left parties early this month withdrew support to the government. Reports suggest that the government has a wafer-thin edge of winning the trust vote.
Following disruption in Lok Sabha in afternoon, voting on the trust motion was likely to be delayed. Earlier Lok Sabha Speaker Somnath Chatterjee had announced that electronic voting will take place on the trust motion in parliament at 18:00 IST today. A debate on the trust vote is going on in the parliament since yesterday in a special session being held for the purpose.
If the government wins the confidence vote it will continue to be in power. If 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.
The 30-share BSE Sensex advanced 254.16 points or 1.84% at 14,104.20. The index gained 356 points at day's high of 14,206.13 hit in early afternoon trade. The Sensex shed 51.86 points at day's low of 13,798.18, hit at the onset of trading session.
The broader based S&P CNX Nifty advanced 80.6 points or 1.94% at 4240.10. Nifty July 2008 futures were at 4271.90, at a premium of 31.80 points as compared to spot closing.
The BSE Mid-Cap index was up 1.69% to 5,346.03 and the BSE Small-Cap index was up 1.53% to 6,536.42.
The market breadth was strong on BSE with 1849 shares advancing as compared to 734 that declined. 74 remained unchanged.
BSE clocked a turnover of Rs 5504 crore, higher than Rs 4,408.03 crore on Monday, 21 July 2008. NSE's futures & options (F&O) segment turnover was Rs 54,100.84 crore, which was higher than Rs 43942.21 crore on Monday, 21 July 2008.
The market has witnessed a solid surge ahead of the government's trust vote. Sensex has risen for four consecutive trading sessions ahead of trust vote in the parliament later today. Sensex has risen 1528.4 points or 12.15% in last four trading sessions from its close of 12575.80 on 16 July 2008. The barometer index is down 6182.79 points or 30.47% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 7102.57 points or 33.49% away from its all-time high of 21,206.77 struck on 10 January 2008.
ITC (up 6% at Rs 189.90), Wipro (up 5.93% at Rs 394.75), Cipla (up 4.99% at Rs 237.75), Reliance Communication (up 4.83% at Rs 468.15), and ACC (up 4.08% at Rs 564.50), were the prominent gainers from the Sensex pack today, 22 July 2008.
India’s largest drug maker by sales Ranbaxy Laboratories rose 1.03% at Rs 462.90 after the company said a UK court had quashed the country's Serious Fraud Office's (SFO) prosecution of the firm's subsidiary. Ranbaxy said in a statement the English Crown Court had also declined an application by the SFO for permission to appeal to the English Court of Appeal. However, the SFO retained a right to appeal to the court directly, the Indian firm said.
Jaiprakash Associates (down 4.26% at Rs 159.45), Bharti Airtel (down 2.47% at Rs 778.75), DLF (down 2% at Rs 454.15), and Tata Motors (down 1.94% at Rs 411.90), were the major losers from the Sensex pack.
India's largest passenger carmaker by sales Maruti Suzuki (India) slumped 9.29% to Rs 587.95. Its net profit fell 6.8% to Rs 465.85 on a 20.9% increase in sales to Rs 4753.58 crore in Q1 June 2008 over Q1 June 2007. Maruti declared the results after market hours on Monday, 21 July 2008.
Power sector stocks were in demand. Reliance Power (up 7.90% at Rs 142.75), GVK Power & Infrastructure (up 7.70% at Rs 33.55), Reliance Infrastructure (up 6.83% at Rs 919.30), and Tata Power (up 6.23% at Rs 1,108.65), soared. The BSE Power index outperformed the Sensex, rising 4.29% to 2,512.68.
India's largest power equipment maker by sales Bharat Heavy Electricals (Bhel) rose 6.04% at Rs 1,597.50. Its net profit rose 33.1% to Rs 384.41 crore on a 33.9% increase in sales to Rs 4329.24 crore in Q1 June 2008 over Q1 June 2007. The company's outstanding order book stood at Rs 95,000 crore as on 30 June 2008. Bhel declared results after market hours on Monday, 21 July 2008.
Electrical equipment maker Areva T&D jumped 6.17% to Rs 1,617.15 after the company said its board will meet on 29 July 2008 to consider a 5-for-1 stock split.
Metal shares rose. Sesa Goa (up 7.01% at Rs 2,878.35), Welspun Gujarat Stahl Rohren (up 7% at Rs 314.15), Jindal Steel & Power (up 6.34% at Rs 1,862.90), and Ispat Industries (up 3.43% at Rs 22.60), soared. The BSE Metal index outperformed the Sensex, rising 3.96% to 12,232.45.
World’s sixth largest steel maker Tata Steel rose 4.32% at Rs 624.35 after its Thailand unit reported a surge in quarterly net profit and on expectations for a domestic price rise.
India's largest state-run steel maker by output Steel Authority of India (Sail) rose for the second day in a row after it reported good Q1 results during trading hours yesterday, 21 July 2008. The stock rose 6.96% to Rs 134.40. Sail's net profit rose 20.3% to Rs 1835.19 crore on a 37.2% increase in sales to Rs 11029.44 crore in Q1 June 2008 over Q1 June 2007.
Banking shares moved up. Kotak Mahindra bank (up 6.97% at Rs 510.15), Axis Bank (up 6.09% at Rs 740.05), and Bank of Baroda (up 5.50% at Rs 243.65), spurted. The BSE Bankex outperformed the Sensex, rising 3.12% to 6,628.98.
India's largest private sector bank by assets ICICI Bank rose 2.67% to Rs 661.30. The stock hit an intra-day high of Rs 677.80 earlier in the day.
India's largest private sector firm by market capitalization and oil refiner Reliance Industries was almost unchanged at Rs 2154.30. Bombay High Court has reportedly adjourned a hearing on the dispute over the gas supply agreement between Reliance Industries of Mukesh Ambani (RIL) and Reliance Natural Resources (RNRL) of Anil Ambani, to Wednesday, 23 July 2008.
For RNRL, the availability and pricing of gas from RIL's Krishna-Godavari basin is critical for the success of its proposed 7,500 megawatt power plant in Dadri. RIL, on the other hand, wants court approval so that it can enter into contracts with third parties for the sale of gas as production from the KG basin draws near.
India’s second largest software exporter by sales Infosys Technologies rose 1.10% at Rs 1578.95.
Power generation equipment maker Thermax rose 4.79% at Rs 401.05 after the company, during market hours today, reported 13.72% rise in net profit to Rs 63.70 crore on a 7.56% increase in sales to Rs 7,16.97 crore in Q1 June 2008 over Q1 June 2007.
State-run mortgage lender LIC Housing Finance rose 1.90% to Rs 262.25 on reports it is set to foray into the venture capital arena and intends to start a Rs 500 crore real estate fund by the end of this financial year.
Drug maker Lupin gained 4.22% to Rs 726.75 on reporting 38.45% rise in net profit to Rs 108.52 on 18.39% rise in total income to Rs 712.42 crore in Q1 June 2008 over Q1 June 2007.
Toys maker Hanung Toys & Textiles gained 0.72% to Rs 190 after posting 101% rise in net profit to Rs 18.69 crore on a 71.4% rise in sales to Rs 146.04 crore in Q1 June 2008 over Q1 June 2007.
Offshore services provider Aban Offshore declined 3.41% to Rs 2,568.40 on concerns of equity dilution after the company said it plans of raise funds through various routes.
Reliance Capital reported the highest turnover of Rs 424.32 crore on BSE. Reliance Infrastructure (Rs 254.36 crore), Reliance Industries (Rs 218.07 crore), Larsen & Toubro (Rs 160.86 crore) and Reliance Natural Resources (Rs 160.10 crore), were the other turnover toppers on BSE in that order.
Reliance Natural Resources clocked a highest volume of 2.21 crore shares on BSE. IDFC (1.23 crore shares), IFCI (1.20 crore shares), Reliance Petroleum (95.29 lakh shares), and Ispat Industries (72.31 lakh shares), were the other volume toppers on BSE in that order.
European markets, which opened after Indian market, were in red. Key indices in UK, France and Germany were down 0.68% to 1.44%. European markets tumbled after a worse-than-forecast profit fall from Ericsson and a revenue warning from Vodafone spooked investors.
Asian markets, which were subdued earlier in the day, pared losses as the trading session proceeded. Key indices in China, Hong Kong, Singapore, South Korea and Taiwan were down by 0.02% to 0.93%. However, key index in Japan was up 2.98%. The Asian indices had fallen earlier as several major US companies, including American Express Co, iPod maker Apple Inc and cruise ship operator Royal Caribbean Cruises, disappointed investors with lower-than-expected quarterly results on Monday, 21 July 2008.
US stocks finished lower on Monday, 21 July 2008. The Dow Jones Industrial Average lost 29.23 points or 0.25% at 11,467.34. The tech-laden Nasdaq Composite Index lost 3.25 points or 0.14% at 2,279.53.
Caution to prevail ahead of trust vote
Caution is likely to prevail on the bourses ahead of the government’s trust vote in parliament today, 22 July 2008. The government is seeking a vote of confidence in parliament in a special two-day session that began yesterday, 21 July 2008, after it was reduced to minority following withdrawal of support of Left parties early this month.
Trading volumes are likely to remain low as institutional investors will remain on the sidelines ahead of the outcome of the confidence vote. As per reports, the actual voting will take place at between 17:00 IST to 18:00 IST, which is after trading hours. Reports suggest that the government has a wafer-thin edge of winning the trust vote.
If the government wins the confidence vote it will continue to be in power. If 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
Asian stocks were subdued today, 22 July 2008, as several major US companies, including American Express Co, iPod maker Apple Inc and cruise ship operator Royal Caribbean Cruises, disappointed investors with lower-than-expected quarterly results on Monday, 21 July 2008. Key benchmark indices in Hong Kong, China, South Korea, Singapore and Taiwan were down by between 0.1% to 0.7%. The Japanese market bucked the weak trend. The Nikkei 225 average was up 1.4%.
US stocks finished lower on Monday, 21 July 2008. The Dow Jones Industrial Average lost 29.23 points or 0.25% at 11,467.34. The tech-laden Nasdaq Composite Index lost 3.25 points or 0.14% at 2,279.53.
As per provisional data released by the stock exchanges, foreign funds on Monday, 21 July 2008, sold shares worth a net Rs 62.22 crore. Foreign funds purchased worth a net Rs 589.20 crore on Friday, 1 July 2008, data released by market regulator Securities & Exchange Board of India (Sebi) after trading hours on Monday, 21 July 2008, showed.
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 at its quarterly monetary policy review next week.
Crude oil rose more than $2 a barrel to $131.04 on Monday, 21 July 2008. Oil's rise came on the heels of its biggest weekly decline ever.
Daily Call - July 22 2008
The markets continued to strengthen for the third day on Monday as bulls showed no sign of easing their strangle hold on the bears. The fact that the Nifty Futures were traded at a premium of 6 points indicates that the shorts were covered. Also in stock futures we lost 1.5 cr shares of OI which indicates that profits have been booked in positions built over the past days.
The FIIs have turned buyers again in Index futures. Crude is marginally up but will not affect the sentiment. Sentiment was poor in the US as Apple, Texas Instruments and American Express were marked down by at least 10% each with the Nasdaq After Hours Indicator registering a 45 points fall, the largest we have seen in recent history. However, as our markets re-open tomorrow, they will be guided by the outcome of the trust vote and not how US fairs tonight. As you are already hedged, there is nothing more you need to do but twiddle your thumbs. If a large number of MPs fail to turn up there is possibility that the markets could sense which way the wind will blow before the vote.
Morning Call - July 22 2008
Market Grape Wine :
In House :
Nifty at a support at 4095 and 4030 with resistance 4183 and 4220 levels.
Cash: sell ICICI BANK below 621 target 590 with S/L 632
Cash: sell TATAPOWER below 1010 target 980with S/L 1025
Future: Sell BPCL below 280 target 265 with S/L 287
Future : Buy TISCO above 610 target 635 with S/L 600
Out House:
Markets at a support of 13654 & 13452 levls with resistance at 13993 & 14041 levels .
Buy : Relcap & Adlabs
Buy : RIL
Buy : ITC
Buy : LT
Buy : ACC & Grasim at dips
Buy : SBIN & IciciBank
Buy : JPasso
Buy : PFC & NTPC
Buy : GujNRE at dips
Dark Horse : Suzlon , LNT , RIL , ITC ,Core , NTPC & Tisco
Pre Session Commentary - July 22 2008
The Indian Market is expected to have negative opening on the back of unfavorable global cues as US market ended lower and Asian markets are trading mixed. On Monday, the Indian market closed with gains after going through little volatility during the trading session. The domestic market yesterday opened on firm note, tracking strong cues from the Asian markets. Further, market trimmed its initial gains as investors were taking calculative steps on political worries but later managed to gather and maintain the higher momentum to close with good gains. The BSE Sensex ended above 13,800 mark and NSE Nifty closed above 4,100 level. From the sectoral front, the Bank and Pharma indices closed with a gain of more than 3%. Along with this Reality, Metal and Oil & Gas stocks also witnessed buying interest. However, Capital Goods and Consumer Durables stocks were major sufferers of negative sentiment. 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.
We expect that market may remain volatile during the trading session and crucial trust vote will set direction for the market. There will be vote of confidence in parliament today, which will decide UPA’s continuation as a government.
On Monday, the US market was closed in red as oil turned higher after a sharp drop last week by more than $2 to above $US131 a barrel. An announcement by Bank of America also added to negative sentiment about its second-quarter profit of $3.4 billion to $1 billion, down 41% from previous year.
The NASDAQ ended lower by 29.23 points at 11,467.34, followed by the Dow Jones Industrial Average (DJIA) closed lower by 3.25 points at 2,279.53 along with S&P 500 ended down by 0.68 points at 1,260.00.
Indian ADRs ended down. In technology sector, Satyam ended down by (5.22%) along with Wipro closed down by (3.05%), Infosys by (2.45%) and Patni Computers dropped by (2.13%). In banking sector, HDFC bank gained by (1.66%) while ICICI bank lost (0.13%). In telecommunication sector, Tata Communication ended up by (0.10%) and MTNL ended down by (0.44%). Sterlite industries increased by (3.59%).
Today the major stock markets in Asia are trading mixed Japan’s Nikkei is trading higher by 165.31 points at 12,969.01 while Hang Seng index trading down by 24.36 points at 22,508.54 and Taiwan Weighted trading at 7,071.49 dropped by 14.18 points.
The FIIs on Monday stood as net buyer in equity. The gross equity purchased was Rs2,988.40 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,399.20 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs589.20 Crore and net debt was Rs0.00 Crore.
Today, Nifty has support at 4,081 and resistance at 4,221 and BSE Sensex has support at 13,576 and resistance at 14,106.
Market may remain volatile
The market is moving in tune with international markets for last few sessions. The local indices may witness volatility following the overnight gains in the European markets and major Asian gauges like the Nikkei, the Hang Seng index, the Straits Times Index and the Jakarta index are trading in mixed territory in current trades. Although the domestic indices moved up on Monday, intra-day volatility remains the major concern. Among the local indices, the Nifty could test higher levels around the 4215 level and has a support at 4100. The Sensex on the downside may slip to 13700 and may face resistance at 14055.
In the US markets, the broader Dow Jones was down by 29 points at 11467 and the Nasdaq was lost three points to close at 2280.
Indian ADR's had a mixed outing on the US bourses. Satyam was the major loser and tanked 5.22% while Dr Reddy, Wipro and Infosys slumped over 2-4% each. ICICI Bank and MTNL ended with steady loss However, Rediff jumped by 4.58% and Patni Computer surged over 2.13% while HDFC Bank, Tata Motors andVSNL ended with the marginal gains.
Crude oil prices gained marginally, with the Nymex light crude oil for August delivery moved up by $2.16 to close at $131.04 a barrel. In the commodity space, the Comex gold for August series gained $5.70 to settle at $963.70 a troy ounce.
Trading Calls - July 22 2008
Nifty (4160) Sup 4050 Res 4250
Buy Tech M (681)
SL 674 Tgt 694, 698
Buy Siemens (484)
SL 477 Tgt 494, 498
Buy HCC (86)
SL 82 Tgt 92, 94
Sell S Kumars (67)
SL 71 Tgt 61, 60
Sell Amtek Auto (214)
SL 219 Tgt 205, 203
Market may remain jittery
Victory goes to the player who makes the next-to-last mistake.
The Prime Minister was all smiles and flashed the "V" sign before moving the much-awaited confidence motion in the Lok Sabha. Fellow Congress leader and Foreign Minister Pranab Mukherjee went one step ahead, saying that the UPA had secured 276 votes. The confidence displayed by the two senior Congressmen rubbed off on the stock market, with the key indices gaining 1.5% each. A healthy trend in Asian markets and relatively stable oil prices forced the bears on the backfoot for the third successive day.
However, the broader market continued to buck the bullish trend. Market breadth was also negative. Also, institutions (both local and foreign) remained cautious ahead of the crucial trust vote.
In global markets, US stocks ended slightly lower after last week's rally. Oil prices have gained over $2 amid fears of disruption in the Gulf of Mexico from Tropical Storm Dolly. Lack of breakthrough in multilateral talks over Iran's nuclear program too pushed up prices. Markets in Europe rose while Asian markets are marginally down this morning. Japanese shares rose over 1% after yesterday's holiday.
Coming to today's outlook, the market could start off slightly lower. After that the trend is likely to be volatile and rangebound, as most players will stay cautious before the trust vote. The debate on the confidence motion will continue and the vote is unlikely before the close of trading. Uncertainty over the trust vote will keep most players nervous. So, it is difficult to predict a clear direction today. The market's reaction to the outcome of the trust vote will be known only tomorrow.
As for the much-talked about trust vote, it is still too close to call, as Indian politics is highly unpredictable. The UPA is banking on abstentions from the Opposition camp and a few defections as well. Its biggest threat is the emergence of the Third Front (Left-BSP-UNPA). Most political commentators and media expect the Government to survive the trial of strength by a small margin. The bulls will rejoice a UPA win, while a loss will lead to a knee-jerk fall. Once the dust settles, the focus will turn to the fundamentals, which remain fragile. Stay on the sidelines for the day due to the big event risk.
Key Results Today: Alfa Laval, Asian Paints, Bank of Rajasthan, Century Textiles, EMCO, Hanung Toys, IDBI Bank, Indraprastha Gas, Jindal Stainless, Lupin, NIIT Tech, NOCIL, Seamec, Sesa Goa, Siemens, Strides Arcolab, Tata Elxsi and Thermax.
FIIs were net sellers of Rs622.2mn (provisional) in the cash segment on Monday. The local institutions offloaded shares worth Rs2.31bn. In the F&O segment, the foreign funds were net buyers of Rs15.32bn. On Friday, FIIs were net buyers of Rs5.89bn in the cash segment. Mutual funds were net buyers of Rs1.3bn.
Asian markets were trading mixed. The Nikkei in Tokyo rallied 1.3% to 12,969 while the Hang Seng in Hong Kong was nearly unchanged at 22,531. The Kospi in Seoul was down 0.3% at 1557 while the Straits Times in Singapore dropped 0.7% at 2899. The Taiex in Taiwan lost 0.2% at 7074 and the Shanghai Composite in China shed 0.5% to 2847.
US stocks fell on Monday after oil prices rebounded, and investors turned cautious again on the financial sector. Sentiment was also affected by after pharma giants - Merck & Co. and Schering Plough - postponed reporting their quarterly results. Norwegian researchers said a study found a cholesterol drug marketed by the two companies to be ineffective in curtailing a cardiac condition.
The S&P 500 index closed nearly flat at 1,260. The Dow Jones Industrial Average dropped 29.23 points, or 0.3%, to 11,467.34, and the Nasdaq Composite Index lost 3 points, or 0.1%, to 2,279.53.
Market breadth remained positive. Seven stocks advanced for every five that fell on the New York Stock Exchange (NYSE), as all 39 energy companies in the S&P 500 advanced.
Oil prices rebounded strongly, following the largest four-day slide in trading history. Investors focused on a breakdown of negotiations with Iran, as well as Tropical Storm Dolly, which is making its way into the Gulf of Mexico. Light, sweet crude oil for August delivery settled up $2.16 to $131.04 a barrel.
Regular unleaded gas fell to $4.069 a gallon, down from $4.077 the previous day.
Yahoo announced a settlement with activist investor Carl Icahn over its lineup of candidates for board. Yahoo said the board is being expanded to 11 members, one of whom will be Icahn, along with two other added positions from Icahn's proposed slate of nine candidates. Shares of Yahoo slipped by more than 3%. Yahoo was scheduled to report its earnings Tuesday.
After the bell, Apple reported its third-quarter profit jumped 31%, beating Wall Street's expectations. The technology giant earned $1.07bn, or $1.19 per share, 11 cents ahead of Wall Street's expectations. Shares of Apple ended the trading day up 0.6%, but guidance for the coming quarter hit the stock in after-hours trading, pushing the stock down about 4.5%.
After the close, Merck announced that its second-quarter profit beat analyst expectations. Several charges drove second-quarter profit for Schering-Plough down, but adjusted profit results for the quarter topped Wall Street expectations.
Bank of America reported better-than-expected earnings, even as it revealed that its profit plunged 41% in the most recent quarter. After the bell, American Express reported profits that missed expectations badly, citing an economic environment that "has weakened significantly.
In currency trading, the dollar lost ground against both the euro and the yen. In the bond market, Treasury prices mostly increased, and the yield of the 10-year benchmark fell to 4.06%, from 4.08% late on Friday. COMEX gold for August delivery settled $5.70 higher at $963.70 an ounce.
Europe stocks advanced, led by banks. The pan-European Dow Jones Stoxx 600 index rose 0.6% to 282.36 after Bank of America topped earnings estimates. UK's FTSE 100 gained 0.5% to 5,404.30, while Germany's DAX 30 added 0.7% to 6,424.84, and the French CAC 40 was up 0.6% at 4,327.14.
Volatile markets ended with smart gains extending winning streak to third straight trading session. Firm global cues coupled with declining crude oil prices lifted the Indian bourses to open with a positive gap. Thereon key indices turned volatile and witnessed alternate bouts of buying and selling.
However, bulls gained momentum ahead of the trust vote on back of short covering. Finally the Sensex gained 214 points to close at 13,850 and the Nifty surged 67 points to close at 4,159.
Among the 30-scrips of Sensex, RIL, ICICI Bank, HDFC Bank and SBI were among the major gainers. However, the laggards were Satyam and L&T.
In the overall market, 1,163 stocks advanced and 1,368 stocks declined. Whereas, 84 stocks were unchanged.
Volume Toppers…
IDFC was among the most traded counter on the bourses. Others like, RNRL, RPL, JP Associates, Chambal Fertilizer, Satyam, Idea, Renuka Sugar, RPower and ICICI Bank were among the stocks in demand in the liquid universe.
Shares of IDFC declined by over 14% to Rs93.4 after the company may need about US$250mn in equity capital, Morgan Stanley analysts said. A central bank requirement for finance firms to increase capital to 15% of assets, from 10%, will force IDFC to sell stock, the US brokerage added.
Rating companies have asked IDFC to maintain its leverage ratio at five times its capital if it wants to keep its triple A credit rating, Morgan Stanley said. IDFC has reported a 20% increase in net profit to Rs2.17bn in the three months ended June 30, from Rs1.81bn a year earlier.
IDFC’s need to raise Tier-I capital in the current year, together with lower earnings growth estimates will cap near-term upside on the stock price, says another broking firm. The scrip touched an intra-day high of Rs112 and a low of Rs92 and recorded volumes of over 1,00,00,000 shares on NSE.
SCI ended flat at Rs207. The board of directors of the company at its meeting held on May 20, 2008 considered the proposal to issue 1 bonus share for every 2 equity shares held and decided to recommend the proposal to the administrative Ministry i.e. Ministry of Shipping, Road Transport & Highways for their approval in terms of the Articles of Association of the Company.
Further the company has said that, the Ministry of Shipping, Road Transport & Highways (MoSRTH) approved the proposal for issuance of 1 bonus equity share having nominal value of Rs10/ each for every 2 equity share held by the shareholders. Therefore, the Board may discuss the proposal at its meeting to be held on July 26, 2008. The scrip touched an intra-day high of Rs216 and a low of Rs203 and recorded volumes of over 1,00,000 shares on BSE.
3i Infotech gained by 1.6% to Rs95 after the company announced that it signed an agreement with Bank of India, to implement AMLOCK(TM), the company's award winning Anti Money Laundering (AML) software.
As part of this agreement, the company would undertake complete system integration, from procurement and installation of hardware including Storage, Database, Middleware, and Report Writer. The scrip touched an intra-day high of Rs99 and a low of Rs92 and recorded volumes of over 8,00,000 shares on NSE.
Dr Reddys Labs advanced by 2% to Rs675 after the company posted a net profit attributable to the shareholders of the parent of Rs919.70mn for the quarter ended June 30, 2008 as compared to Rs1872.30mn for the quarter ended June 30, 2007.
Total Income increased from Rs12624.90mn for the quarter ended June 30, 2007 to Rs15476.10mn for the quarter ended June 30, 2008. The scrip touched an intra-day high of Rs695 and a low of Rs650 and recorded volumes of over 3,00,000 shares on NSE.
SAIL gained by 3% to Rs125 after the company posted a net profit of Rs18.351bn for the quarter ended June 30, 2008 as compared to Rs15.251bn for the quarter ended June 30, 2007. Total Income increased from Rs83.464bn for the quarter ended June 30, 2007 to Rs114.219bn for the quarter ended June 30, 2008.
The scrip touched an intra-day high of Rs128 and a low of Rs121 and recorded volumes of over 50,00,000 shares on NSE.
Kohinoor Foods surged by over 4.5% to Rs107 after the company announced that it is planning to put up own spices manufacturing unit,synergic to its operational Indian food domain. The company is eyeing the chilled foods business and intends to augment its current manufacturing facility by bringing in chilled foods processing capabilities.
KFL's overseas arms in the US and UK - aiming to garner leadership status in their respective countries in the Indian foods business; in UK, Kohinoor has become 4th most popular Indian food brand. The scrip touched an intra-day high of Rs117 and a low of Rs100 and recorded volumes of over 10,00,000 shares on NSE.
Tata Motors is set to roll out pilot batch of 25 Nanos by September 15, 2008. (ET)
Reliance Communications has launched blackberry smartphone in the Indian market. (ET)
ONGC Videsh Ltd, subsidiary of ONGC is gearing to bid for blocks in Eucador jointly with Petro Eucador. (ET)
Tech Mahindra bags US$700mn order from BT for transformation of its IT systems. (ET)
Cipla India may launch copycat version of 20 patented drugs of leading global drug makers.
GVK Power is in talks with three PE players to offload 25% stake in its power business. (Mint)
Idea Cellular offers to surrender two licenses to gain DoT nod for its proposed merger with Spice Communications. (Mint)
Tata Group and Reliance Industries have applied for allocation of captive coal blocks for converting coal into liqui8d fuels. (DNA)
Omaxe Ltd to raise funds for its ambitious affordable housing project from PE players. (DNA)
BSNL defers opening of US$6bn GSM tender to August 30 from July 16. (DNA)
Tata Power to pick up 26% stake in Government of Bhutan promoted 114MW Hydro electric power projects. (BS)
Satyam Computer Services plans to set up IT and BPO development centres in Mexico and Chile. (BS)
Reliance Communications total subscriber base has touched the 50mn mark. (BS)
Bombay High Court will hear the KG Basin gas dispute between Reliance Industries and RNRL today. (ET)
Canara Bank plans to launch a Rs5bn venture capital fund. (BS)
Air India plans to cut tariffs on international routes. (ET)
LIC Housing Finance plans to enter venture funding and plans to start a Rs5bn real estate fund by the end of current fiscal. (BS)
Voltas to raise prices of air conditioners to offset rising input costs. (BS)
Petronet LNG hopes to close a long-term LNG contract soon following its board’s in-principle nod. (BL)
IVRCL Infrastructure has bagged five orders worth Rs3.5bn. (ET)
Bank of Baroda plans to open 10 new overseas branches. (ET)
Max Group is looking to list three of its subsidiaries Max India, Max New York Life and Max Healthcare. (ET)
UCO Bank may raise Rs3.25bn through preference allotment of equity shares. (ET)
Dr Reddy to buy out stake of ICICI ventures and Citigroup Venture Capital for US$18mn in Perlecan. (ET)
Glenmark Pharmaceuticals may acquire a medium to large scale specialty pharmaceutical company in US. (BS)
Garware Offshore has taken delivery of its eighth vessel “MV Poorna”, a AHTSV at Singapore. (FE)
Bilcare along with US company MeadWestaco Corporation has acquired International Labs, an American pharmaceutical packaging firm. (BS)
Global Vectra plans to start helicopter shuttle services in Mumbai, Bangalore and Kolkata. (ET)
Elder Pharmaceuticals has signed an agreement with California based Cymbiotics to market the latter’s six patented drugs in India. (ET)
Max Healthcare set to add four more hospitals tp its network by 2010. (BL)
Max India restructures its JV with New York Life to allow the latter to acquire additional 24% stake at 10% discount to fair market price. (BL)
Kirloskar Pneumatic Co to set up roadrailer manufacturing plant at Nashik. (FE)
Precision Automation and Robotics India bagged a Chrysler deal to build the US car maker’s axle assembly plant. (FE)
Economic Front Page
TRAI has questioned all telecom operators with respect to high SMS tariffs. (ET)
TRAI has told DoT to hike entry fee for an all India telecom license, if it wants to impose a one time spectrum fee on all GSM operators who hold radio frequencies above 6.2MHz. (ET)
The government is planning to simplify procedure for warrants issue MNCs on auto FDI route by allowing them to bypass FIPB approval. (ET)
The finance ministry has decided to form a panel to suggest possible changes in the proposed Insurance bill. (ET)
National Housing Bank is planning to buy housing loans from banks and housing finance companies. (ET)
Government has decided to ban all companies from Dubai, China, Hong Kong and Pakistan from investing in port infrastructure projects in the country. (ET)
US Market posts slight losses
Indices register little losses after a couple of pharmaceutical companies come under scanner
US market registered little losses today, Monday, 21 July, 2008 after crude prices climbed up again and Banc of America announced a substantial drop in its profits but however topping Wall Street’s estimates. Two pharmaceutical companies postponing their earning report till market closes also took a bit of toll on the market sentiment. Seven out of ten sectors ended in the red today led by consumer discretionary. Energy sector was one of the top gainers.
After a modest climb, The Dow Jones industrial Average ended the day with a loss of 29.23 points at 11,467.34. The Nasdaq Composite Index, finished lower by 3.25 points at 2,279.53. S&P 500 finished lower by 0.68 points at 1,260.
Twenty-one out of thirty Dow stocks ended in the red today led by Merck and American Express.
On the economic front, June leading indicators fell 0.1%, which was in-line with expectations. The report had a limited impact on the stock market.
Bank of America reported a 43% drop in earnings per share to $0.72. However, the result easily topped Wall Street's forecast due to a lower-than-expected write-down of $1.2 billion. The stock closed higher by 4%.
Merck along with Schering-Plough delayed releasing their second-quarter earnings until after the market's close as Norwegian researchers said the study found a cholesterol drug, Vytorin, marketed by the two companies to be ineffective in curtailing a cardiac condition.
The healthcare sector recently took a sharp slip into negative ground after momentarily spiking upward into the green. The drop coincides with negative news related to two marquee names in the pharmaceutical industry.
Barring HDFC Bank, Rediff.com and Patni Computers, all other Indian ADRs ended in the red today. Rediff.com was the largest gainer with the ADR soaring more than 4%.
Crude oil prices rose for the first time in five sessions today. Price spurred up as a tropical storm, Dolly, entered the Gulf of Mexico, and Iran, the world's fourth-biggest producer, resisted demands to suspend nuclear research. Crude-oil futures for light sweet crude for August delivery closed at $131.04 /barrel (higher by $2.16/barrel or 1.7%) on the New York Mercantile Exchange. It was the first increase in five days.
A hurricane watch was issued for the Texas coastline from Brownsville to Port O'Connor at morning time today by the Miami-based hurricane center. Dolly moved over the Yucatan Peninsula earlier today. Petroleos Mexicanos, Mexico's state oil company, produces about 1.07 million barrels of oil a day in the Bay of Campeche, which is south of the projected track of the storm. The northern Gulf of Mexico accounts for about 25% of U.S. oil production.
Trading was relatively light, with volume on the New York Stock Exchange passing 1.2 billion, and advancing stocks outran those declining nearly 2 to 1. On the Nasdaq, more than 753 million shares traded, and advancers beat decliners 5 to 4.
For tomorrow, Wachovia Bank, UPS, United Health, Caterpillar and DuPont are some of the more widely-held companies scheduled to announce their latest quarterly results Tuesday morning. There is no market moving economic data due tomorrow. Treasury Secretary Henry Paulson is scheduled to speak about the U.S. economy and markets before the opening bell.
Today's Pick - Indian Bank
We recommend a buy in Indian Bank from a medium-term perspective. From the charts of Indian Bank we observe that it had been on an intermediate-term down trend from its February high of Rs 256 till it recorded its 52-week low of Rs 78 on July 16.
The area around Rs 78 is a key support level and the stock reversed direction from here.
This reversal was supported by positive divergence in the daily relative strength index (RSI) and the moving average convergence and divergence.
On July 21, the stock jumped up 13 per cent breaking through its intermediate-term down trendline as well as the 21-day moving average.
The stock has gained 25 per cent over the past two trading sessions with heavy volume support.
The daily RSI is rising in the neutral region towards the bullish zone and the weekly RSI has recovered from the oversold region.
We are bullish on the stock in the medium-term horizon. We expect the stock to move up until it hits our price target of Rs 124 in the medium-term.
Traders with medium-term perspective can buy the stock while maintaining stop-loss at Rs 89.
via BL
Property prices down
Housing Development Infrastructure on Monday said countries real estate sector is going to witness a 20-25 per cent price fall but the financial capital would be insulated and would see a 10-15 per cent correction.
"There is still supply constraint in Mumbai. Hence, the fall will be in the range of 10-15 per cent, if there is further reduction in demand. But, the remaining part of the country is like to see a 20-25 per cent correction," HDIL's Managing Director Sarang Wadhawan told reporters on the sidelines of the company's Annual General Meeting here.
Wadhawan said that since the industry is cyclic in nature, the current phase of demand recession may be there for two years and then the boom period starts to stay for another five years or vice versa.
The company recorded over 56 per cent rise in net profit for the quarter ended June 30 at Rs 317.93 crore as against Rs 202.68 crore in the corresponding quarter previous fiscal.
It would not be impacted much by the slowdown in realty sector as its operations is mainly confined into the Mumbai metropolitan area.
"The company is confident of executing all the projects on time and continues to register positive growth in the remaining part of the fiscal," Wadhawan said.
HDIL's turnover increased by 28.6 per cent during the first quarter of the current fiscal at Rs 570 crore over the same quarter last fiscal.
The company, he said, is likely to develop projects on 10-12 million square feet area in the city including the Mumbai Airport Slum Rehabilitation Project (MASRP) and is set to spread it wings to Hyderabad and Kochi.
Wadhawan said the first phase of the MASRP has already been kicked off and would be completed in the next one and a half year-two year time. The company has started construction on around 15 mn sq feet of area for rehabilitating around 20,000 families in the first phase.
HDIL also plans to set up a multi-product SEZ at Virar in Thane district.
"We have acquired 2,300 acre of land and are in the process of acquiring additional 200 acre. After that, we will approach to the Government for approval," Wadhwan said.
Bullion metals register gains
Higher crude price and weak dollar puts some shine back on precious metals
Higher crude prices led to higher bullion metal prices today, Monday, 21 July, 2008. Weakness in the US dollar also led to higher bullion metal prices today. 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 also rose for the day.
Comex Gold for August delivery rose $5.7 (0.6%) to close at $963.7 ounce on the New York Mercantile Exchange. It rose to a high of $966.5 during intra day trading. Last 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.
This year, gold prices have gained 15% till date against a 5.5% drop for the dollar against the euro. Gold prices ended June, 2008 with a gain of 4.1%. The yellow metal ended second quarter with a marginal gain of 0.7%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, for April, prices closed lower by 6.3%.
For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.
Today, Comex silver futures for September delivery rose 23 cents (1.2%) to $18.43 an ounce. Silver has gained 25% in 2008 till date. 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.
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 Monday, the U.S. dollar slipped after getting some support earlier on better-than-expected results from Bank of America. The banking giant reported a 41% profit fall for the second quarter but still beat Wall Street earnings estimates. The dollar index, a measure of the greenback against a trade-weighted basket of currencies, was down 0.1% at 72.069.
In the crude market on Monday, crude futures rose for the first time in five sessions, rebounding from last week's biggest weekly losses. Prices rose after multilateral talks over Iran's controversial nuclear program didn't yield progress. Cruse also crept higher as Tropical Storm Dolly headed toward the western Gulf of Mexico. Crude for August delivery closed up $2.16 (1.7%) at $131.04 a barrel on the New York Mercantile Exchange.
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.
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 month.
Gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for August delivery closed higher by Rs 95 (0.72%) at Rs 13,305 per 10 grams. Prices rose to a high of Rs 13,366 per 10 grams and fell to a low of Rs 13,227 per 10 grams during the day’s trading.
At the MCX, silver prices for September delivery closed Rs 266 (1.04%) higher at Rs 25,700/Kg. Prices opened at Rs 25,515/kg and rose to a high of Rs 25,826/Kg during the day’s trading.
Crude rises for first time in five sessions
Prices rise on Iran’s threats and as storm Dolly comes near the Gulf
Crude oil prices rose for the first time in five sessions today, Monday, 21 July, 2008. Price spurred up as a tropical storm, Dolly, entered the Gulf of Mexico, and Iran, the world's fourth-biggest producer, resisted demands to suspend nuclear research. Last week crude had coughed up almost $16.5 in four sessions. Prices had plunged once again on economic worries surrounding the US economy.
Crude-oil futures for light sweet crude for August delivery closed at $131.04 /barrel (higher by $2.16/barrel or 1.7%) on the New York Mercantile Exchange. It was the first increase in five days. Last week, prices coughed up $16.5 (11.2%). It's now 11% 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 74% higher than a year ago. For the year, crude is up by 38.7% till date.
A hurricane watch was issued for the Texas coastline from Brownsville to Port O'Connor at morning time today by the Miami-based hurricane center. Dolly moved over the Yucatan Peninsula earlier today. Petroleos Mexicanos, Mexico's state oil company, produces about 1.07 million barrels of oil a day in the Bay of Campeche, which is south of the projected track of the storm. The northern Gulf of Mexico accounts for about 25% of U.S. oil production.
On the other hand, Iran snubbed Western efforts to get it to suspend nuclear enrichment at talks in Geneva on 19 July setting the stage for new sanctions if the Middle East's second-largest oil producer doesn't respond to an existing proposal within two weeks.
At the currency markets on Monday, the U.S. dollar slipped after getting some support earlier on better-than-expected results from Bank of America. The banking giant reported a 41% profit fall for the second quarter but still beat Wall Street earnings estimates. The dollar index, a measure of the greenback against a trade-weighted basket of currencies, was down 0.1% at 72.069.
In its monthly report issued last 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.
Natural gas in New York declined amid an outlook supplies are ample at the height of the U.S. cooling season and the path of a storm in the Gulf of Mexico will miss production areas. Natural gas for August delivery fell 6 cents (0.6%) to settle at $10.51 per million British thermal units.
At the MCX, crude oil for July delivery closed at Rs 5,599/barrel, higher by Rs 67 (1.21%) against previous day’s close. Natural gas for July delivery closed at Rs 453.3/mmbtu, lower by Rs 3.6/mmbtu (0.8%).
RCom July 2008 futures at premium
Turnover drops
Nifty July 2008 futures were at 4164, at a premium of 4.50 points as compared to spot closing of 4159.50. NSE's futures & options (F&O) segment turnover was Rs 43,942.21 crore, which was lower than Rs 52,794.98 crore on Friday, 18 July 2008.
Reliance Communications (RCom) July 2008 futures were at premium at 450.10 compared to the spot closing of 446.50.
Reliance Petroleum July 2008 futures were near spot price at 154.75 compared to the spot closing of 154.40.
NTPC July 2008 futures were at discount at 179.55 compared to the spot closing of 181.50.
In the cash market, the S&P CNX Nifty gained 67.25 points or 1.64% at 4159.50.
Subscribe to:
Posts (Atom)