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Wednesday, July 23, 2008
NSE Bulk Deals to Watch - July 23 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
23-JUL-2008,CUBEXTUB,CUBEX TUBINGS LTD,VIMAL RAMNARAYAN TOSHNIWAL,BUY,100000,45.69,-
23-JUL-2008,FIRSTWIN,First Winner Industries L,CHOKHANI SECURITIES LTD,BUY,106561,144.39,-
23-JUL-2008,FIRSTWIN,First Winner Industries L,DIPAK RAMANBHAI RATHOD,BUY,156580,147.04,-
23-JUL-2008,FIRSTWIN,First Winner Industries L,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,101437,144.63,-
23-JUL-2008,FIRSTWIN,First Winner Industries L,PIONEER MERCHANTILE LTD,BUY,100000,151.94,-
23-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,BUY,201532,144.22,-
23-JUL-2008,FIRSTWIN,First Winner Industries L,YUVAK SHARE TRADING PVT LTD,BUY,141297,146.54,-
23-JUL-2008,GKW,GKW Ltd,AMRABATHI INVESTRA PVT LTD,BUY,63999,78.56,-
23-JUL-2008,GKW,GKW Ltd,LOTUS GLOBAL INVESTMENTS LIMITED,BUY,450000,80.00,-
23-JUL-2008,IBREALEST,Indiabulls Real Estate Li,FIDELITY FUNDS - EMERGING MARKETS FUND,BUY,4100000,332.41,-
23-JUL-2008,IFCI,IFCI Ltd.,CLEAN FINANCE & INVESTMENT LTD,BUY,4063857,45.01,-
23-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,DIPAK RAMANBHAI RATHOD,BUY,279620,40.92,-
23-JUL-2008,NIITTECH,NIIT Technologies Limited,MINIX HOLDINGS PRIVATE LIMITED,BUY,348067,110.62,-
23-JUL-2008,SB&TINTL,SB&T International Ltd,KB CAPITAL MARKETS PVT LTD,BUY,100000,14.71,-
23-JUL-2008,CUBEXTUB,CUBEX TUBINGS LTD,K V J CONTAINER PRIVATE LIMITE,SELL,109075,45.70,-
23-JUL-2008,FIRSTWIN,First Winner Industries L,CHOKHANI SECURITIES LTD,SELL,106561,144.82,-
23-JUL-2008,FIRSTWIN,First Winner Industries L,DIPAK RAMANBHAI RATHOD,SELL,192794,147.33,-
23-JUL-2008,FIRSTWIN,First Winner Industries L,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,101437,144.70,-
23-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,SELL,201532,144.52,-
23-JUL-2008,FIRSTWIN,First Winner Industries L,YUVAK SHARE TRADING PVT LTD,SELL,138294,146.80,-
23-JUL-2008,GKW,GKW Ltd,AMRABATHI INVESTRA PVT LTD,SELL,444332,80.00,-
23-JUL-2008,IBREALEST,Indiabulls Real Estate Li,FIDELITY MT VERNON STREET TRUST FIDELITY AGG. GROWTH FND,SELL,3029485,330.61,-
23-JUL-2008,IFCI,IFCI Ltd.,CLEAN FINANCE & INVESTMENT LTD,SELL,4063857,45.03,-
23-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,DIPAK RAMANBHAI RATHOD,SELL,259626,40.35,-
23-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,KAMALABEN A. THAKKAR,SELL,152088,40.25,-
23-JUL-2008,PRAENG,Prajay Engineers Syndicat,GENERAL ELECTRIC INVESTMENT CORPORATION A/C GENERAL ELECTRIC,SELL,172000,56.93,-
23-JUL-2008,SB&TINTL,SB&T International Ltd,SEAGLIMPSE INVESTMENTS PVT LTD,SELL,100000,14.19,-
BSE Bulk Deals to Watch - July 23 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
23/7/2008 511706 ACTION FIN BIREN VALABHJI SAVLA S 49900 27.00
23/7/2008 532981 ANU LABS GOPAL TRADERS S 62792 384.11
23/7/2008 511664 BGIL FL TEC CHETAN DOGRA S 33914 20.38
23/7/2008 590059 BIHAR TUBES SECUROCROP SECURITIES INDIA P B 310000 173.07
23/7/2008 590059 BIHAR TUBES GEOMATRIX HK LTD AC DUMAURITIUS LTD S 272940 173.20
23/7/2008 522059 CHAMPAGN IND RAKESH JHUNJHUNWALA B 438650 364.00
23/7/2008 522059 CHAMPAGN IND ARISAIG INDIA FUND LIMITED S 408964 364.00
23/7/2008 532271 CYBERMAT INF PRABHUDAS LILLADHER PVT. LTD. B 375179 4.52
23/7/2008 532271 CYBERMAT INF S V ENTERPRISES B 2474648 4.59
23/7/2008 532271 CYBERMAT INF PRABHUDAS LILLADHER PVT. LTD. S 375179 4.55
23/7/2008 532271 CYBERMAT INF S V ENTERPRISES S 2474648 4.51
23/7/2008 532876 EVERONN SYS RUIA INTERNATIONAL HOLDING COMPANY PRIVATE LIMITED B 108683 452.50
23/7/2008 532876 EVERONN SYS ASHOKKUMAR RUIA S 115316 451.85
23/7/2008 532996 FIRST WIN JUPITOR BUSINESS LTD B 100000 151.87
23/7/2008 532938 FUTURE CAP ROOPCHAND BHANSALI HUF B 389433 330.00
23/7/2008 532938 FUTURE CAP BUSINESSMATCH SERVICES IND LTD S 390000 330.00
23/7/2008 524494 IPCA LAB LTD. PRUDENTIAL ICICI TRUST LTD AC DYNAMIC PLAN B 591000 544.00
23/7/2008 524494 IPCA LAB LTD. HDFC STANDARD LIFE INSURANCE CO LTD S 590844 544.00
23/7/2008 530165 KANCHA INTER BHARAT SHANTILAL SHA S 22874 5.67
23/7/2008 532283 KASHYAP TEC AYODHYAPATI INVESTMENT PVT LTD B 2306164 1.52
23/7/2008 532283 KASHYAP TEC AYODHYAPATI INVESTMENT PVT LTD S 2306164 1.56
23/7/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD B 460169 21.13
23/7/2008 531602 KOFF BR PICT DARSHAN NARENDRA SHAH B 30000 19.33
23/7/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD S 683098 20.22
23/7/2008 530979 MANOJ HOU FI VIDHI HOLDINGS PRIVATE LIMITED B 25000 13.62
23/7/2008 511551 NETWO ST BRO MAGNA UMBRELLA FUND PLC S 77576 45.56
23/7/2008 531746 PRAJAY ENG S GE ASSET MANAGEMENT INCORPORATED S 255000 56.96
23/7/2008 506618 PUNJAB CHEM RUPAK KUMUDHBAI SHAH B 25455 277.23
23/7/2008 522207 RASAND ENG I RELIANCE TAX SAVER ELSS FUND S 55729 65.03
23/7/2008 513583 SBT INTERN SEAGLIMPSE INVESTMENTS PVT LTD S 96954 14.09
23/7/2008 500389 SILVERLINE T BSMA LTD S 213885 18.13
23/7/2008 532961 SITA SHREE SAGAR CONSTRUCTIONS S 120000 18.52
23/7/2008 532765 USHER AGRO MERILL LYNCH CAPITAL MARKET ESPANA B 900000 125.00
23/7/2008 532765 USHER AGRO SOMEREST EMERGING OPPORTUNITIES FUND S 150518 125.00
23/7/2008 532765 USHER AGRO SOPHIA GROWTH S 849482 125.02
Post Session Commentary - July 23 2008
The domestic market celebrated the UPA’s victory over the crucial vote of confidence in parliament on Tuesday and ended the day with handsome gains. Market was hovering in sea of green for through out the trading session. Indian market opened with a bang tracking a spectacular win by the UPA government over the nuclear deal and kept on marching forward through out the trading session. The favoring cues from the global markets and decline in crude oil prices by more than $3 a barrel to $127.95 per barrel on the New York Mercantile Exchange gave a support to the market sentiments. This led to the market to gather the momentum to continue its northward journey and close at day’s high after D-day outcome. Both NSE Nifty and BSE Sensex closed with gains of more than 5%. The BSE Sensex ended above 14,900 level and NSE Nifty closed above 4,400 mark. The sharp rise was due to the heavy buying activities over the counters across all indices that ended in green. Out of which, Bank index rallied to close with a gain of around 10%. Also, the Capital Goods, Metal, Reality, Power and Oil & Gas stocks also witnessed heavy buying from these baskets. The market breadth was extremely strong as 2270 stocks closed in green while 436 stocks closed in red and 53 stocks remained unchanged.
UPA government won a vote of confidence in parliament on Tuesday, ensuring the immediate survival of the ruling coalition and a civilian nuclear deal with the United States. The government won 275 votes against 256 for the opposition. Government is now hoped to concentrate on addressing some pressing issues, like hold back the inflation and give a push to manufacturing growth.
The BSE Sensex closed higher by 838.08 points at 14,942.28 and NSE Nifty ended up by 236.70 points at 4,476.80. The BSE Mid Caps closed with gains of 269.91 points at 5,615.94 and Small Cap ended up by 17.91 points 276.22. The BSE Sensex touched intraday high of 14,979.90 and intraday low of 14,568.22.
Gainers from the BSE are Reliance Com Ltd (12.20%), ICICI Bank Ltd (11.64%), BHEL (10.92%), HDFC (10.92%), SBI (10.45%), Reliance Infra (10.36%), HDFC Bank Ltd (9.57%), DLF Ltd (9.12%), JP Associates (8.37%) and L&T Ltd (7.58%).
Among the Sensex 30 pack 28 stocks closes in green and only two closed in red. Lossers from the BSE are Cipla Ltd (2.21%) followed by HUL (0.65%).
The BSE Capital Goods index gained 933.47 points to close at 12,339.77. Major gainers are Punj Lloyd (12.46%), Seimens Ltd (11.48%), BHEL (10.92%), Suzlon Energy (10.37%), Crompton Greaves (9.85%) and L&T Ltd (7.58%).
The Metal index closed up by 838.07 points at 13,070.52. Gainers are Sesa Goa Ltd (14.79%), Sh Precoated (14.38%), Jindal Steel (12.95%), Tata Steel (9.51%), Ispat Industries (8.63%), and Jindal Sawl (7.87%).
The BSE Bank index closed higher by 662.52 points at 7,291.50. Major gainers are Yes Bank (16.76%), Karnataka Bank (14.68%), Kotak Bank (13.46%), Federal Bank (12.55%), ICICI Bank Ltd (11.64%), SBI (10.45%), Canara Bank (10.22%), and Indian Overseas Bank (9.60%).
The Oil & Gas index ended up by 482.28 points at 9,864.59. As Reliance Natural Resources (22.71%), Essar Oil Ltd (7.66%), Reliance Petroleum (6.91%), Aban Offshore (6.82%), BPCL (6.75%) and IOC (5.77%) closed in positive territory.
The BSE Reality index ended higher by 388.78 points at 5,199.27. As Pheonix Mill (18.76%), Housing Development (10.63%), Mahindra Life (10.11%), Sobha Dev (9.45%), PDLF Ltd (9.12%), Unitech Ltd (7.77%), and Parsvnath (7.50%) closed in positive territory.
The BSE Consumer Durables index gained 218.41 points to close at 3,737.45. Major gainers are Rajesh Exports (12.06%), Videocon Industries (9.17%), Ranbaxy Lab (4.74%), Titan India (7.66%), Blue Star Ltd (2.94%) and Lloyd Ele En (1.51%).
The BSE Power index gained 194.43 points to close at 2,707.11. Major gainers are Reliance Power (19.75%), GVK Power Inf (12.67%), Siemens Ltd (11.48%), BHEL (10.92%), Suzlon Energy (10.37%), Reliance Infra (10.36%) and Crompton Greaves (9.85%).
Market extends its winning streak
The market extended its winning streak for the fifth consecutive session, as firm Asian indices and strong buying in frontline stocks helped the sentiment remain bullish for the better part of the trading session. After accumulating over 1,500 points in the last four sessions, Sense opened well above its previous close and rallied sharply above 13,800. While, the market remained well above 14,800 mark in the first half, it gained further as buying continued and touched the intrude high of 14,980, up 876 points. However, the Sense finally ended the session with a gain of 838 points at 14,942, while Nifty added 237 points to close at 4,477.
The market breadth was extremely positive. Of the 2,257 stocks traded on the BSE, 2,257 stocks advanced, 442 stocks declined and 59 stocks ended unchanged. Among the sect oral indices, BSE Banked jumped 9.99% at 7,292 followed by BSE CG index (up 8.18% at 12,340), BSE Realty index (up 8.08% at 5,199) and BSE Power index (up 7.74% at 2,707).
Most of the heavyweights ended with solid gains, however, select frontline stocks closed with marginal losses. Among the blue chips, Reliance Communications shot up by 12.20% at Rs525.25, ICICI Bank soared 11.64% at Rs738.25, BHEL surged 10.92% at Rs1,772, HDFC gained 10.92% at Rs2,380, SBI moved up 10.45% at Rs1,543 and Reliance Infra advanced by 10.36% at Rs1,014.50. HDFC Bank added 9.57% at Rs1,205.75, DLF moved up 9.12% at Rs495.55, JP Associates scaled up 8.37% at Rs172.80 and L&T was up 7.58% at Rs2,766.65. Among the laggards Copal dropped 2.21% at Rs232.50 and HUL slipped 0.65% at Rs228.15.
Banking stocks closed with strong gains. Yes Bank vaulted 16.76% at Rs140, Karnataka Bank soared 14.68% at Rs142.60, Kodak Bank surged 13.46% at Rs578.80, Federal Bank gained 12.55% at Rs202.30 and Canada Bank advanced by 10.22% at Rs188.75.
Over 5.55 crore Reliance Natural Resources Ltd (RNRL) shares changed hands on the BSE followed by IFCI (2.13 crore shares), Reliance Petroleum (1.69 crore shares), Spat Industries (1.42 crore shares), Reliance Power (1.39 crore shares) and IDFC (1.06 crore shares).
RNRL clocked a turnover of Rs480 crore on the BSE followed by Reliance Capital (Rs476 crore), Reliance Petroleum (Rs286 crore), Reliance Industries (Rs278 crore) and Reliance Communications (Rs259 crore).
Market soars on reforms hopes
The market gave a thumbs up to government securing confidence vote in parliament as that may pave the way for key economic reforms. The barometer index BSE Sensex registered its biggest single day rise in nearly four months. Easing crude oil prices and firmness in global markets were other positive factors that moved the domestic indices higher.
Banking, realty and capital goods sector shares led the rally. All the sectoral indices on BSE were in green. Anil Dhirubhai Ambani controlled Reliance Natural Resources surged on huge volumes.
Oil held near six-week lows on Wednesday, 23 July 2008, as worries increased over dwindling US demand at the same time as fears eased Hurricane Dolly would deal a major blow to oil and gas supply. Oil was trading around $126.34 per barrel, nearly 14% lower than record $147.27 hit earlier this month.
The Congress-led coalition government won a confidence vote in parliament late on Tuesday, 22 July 2008, ending speculation over an early election and allowed Prime Minister Manmohan Sigh to turn the page on political squabbling that had worried investors and stalled government action. The trust vote paves the way for operationalisation of Indo-US nuclear deal.
Finance Minister P. Chidambaram said on Tuesday, 22 July 2009, the government would now push ahead with unfinished economic reforms that would include drafting new legislation in insurance and banking sectors and creating a pension regulatory body.
The 30-share BSE Sensex rose 838.08 points or 5.94% at 14,942.28. It was the biggest single day rise in Sensex since 25 March 2008. Sensex gained 875.70 at day's high of 14,979.90 hit in late trade. The index rose 464.02 points at day's low of 14,568.22, hit in mid-morning trade.
The broader based S&P CNX Nifty advanced 236.70 points or 5.58% at 4476.80. Nifty July 2008 futures were at 4489.90, at a premium of 13.1 points as compared to spot closing.
As per provisional data released by the stock exchanges after trading hours, foreign funds today, 23 July 2008, bought shares worth a net Rs 1,306.56 crore. Domestic funds sold shares worth a net Rs 875.22 crore.
The BSE Mid-Cap index rose 5.05% at 5,615.94 and the BSE Small-Cap index rose 4.23% to 6,812.64.
The market breadth was strong on BSE with 2270 shares advancing as compared to 436 that declined. 53 remained unchanged.
BSE clocked a turnover of Rs 7447 crore as against Rs 5,522.37 on Tuesday, 22 July 2008. NSE's futures & options (F&O) segment turnover was Rs 68010.68 crore, which was higher than Rs 54100.84 crore on Tuesday, 22 July 2008.
Sensex has risen 2366.48 points or 18.81% in last five trading sessions from its close of 12575.80 on 16 July 2008. The barometer index is down 5344.71 points or 26.34% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6264.49 points or 29.54% away from its all-time high of 21,206.77 struck on 10 January 2008.
The top gainers from the Sensex pack today were Reliance Communication (up 12.20% at Rs 525.25), Housing Development Finance Corporation (up 10.92% at Rs 2380.20), Bharat Heavy Elelctricals (up 10.92% at Rs 1772), State Bank of India (up 10.45% at Rs 1543.80), and Reliance Infrastructure (up 10.36% at Rs 1014.50), soared.
Hindustan Unilever (down 0.65% at Rs 231.05), and Cipla (down 2.21% at Rs 232.50), were the only losers in the Sensex pack.
Banking shares soared on expectations reforms in the sector. India’s largest private sector bank by assets ICICI Bank surged 11.64% to Rs 738.25. The stock has 7.55% weightage in Sensex. Yes Bank (up 16.76% at Rs 140), Karnataka Bank (up 14.68% at Rs 142.60), Kotak Mahindra Bank (up 13.46% at Rs 578.80), and Canara Bank (up 10.22% at Rs 188.75), spurted. The BSE Bankex outperformed the Sensex, rising 9.99% to 7,291.50.
Capital goods sector shares edged higher. Punj Lloyd (up 12.46% at Rs 269.90), Suzlon Energy (up 10.37% at Rs 220.30), Crompton Greaves (up 9.85% at Rs 256.45), and Larsen & Toubro (up 7.58% at Rs 2,766.65), gained. The BSE Capital Goods index outperformed the Sensex, rising 8.18% at 12,339.77.
Realty stocks were in demand. Phoenix Mills (up 18.76% at Rs 138.35), Housing Development & Infrastructure (up 10.63% at Rs 513.05), Mahindra Lifespace Developers (up 10.11% at Rs 470.65), and DLF (up 9.12% at Rs 495.55), galloped. The BSE Realty index outperformed the Sensex, rising 8.08% to 5,199.27.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries rose 5.16% to Rs 2265.50. The Bombay High Court will have daily hearing from Thursday, 24 July 2008, on the petition of Reliance Natural Resources (RNRL) seeking to restrain Reliance Industries (RIL) from selling natural gas from its KG basin gas fields to third parties. Reliance Natural Resources surged 22.71% to Rs 90.25. The stock rose on huge volume of 5.55 crore shares.
India's second largest software exporter by sales Infosys Technologies fell 1.57% at Rs 1603.70.
Reliance Natural Resorces clocked the highest turnover of Rs 480.64 crore on BSE. Reliance Capital (Rs 476.17 crore), Reliance Petroleum (Rs 286.42 crore), Relaince Industries (Rs 278.66 crore), and Reliance Communication (Rs 259.57 crore), were the other turnover toppers on BSE in that order.
Reliance Natural Resorces reported the highest volume of 5.55 crore shares on BSE. IFCI (2.13 crore shares), Reliance Petroleum (1.69 crore shares), Ispat Industries (1.42 crore shares), and Reliance Power (1.39 crore shares), were the other volume toppers on BSE in that order.
Mining firm Sesa Goa advanced 14.79% to Rs 3304 after posting 442.42% rise in net profit to Rs 644.72 crore on 182.34% increase in total income to Rs 1310.93 crore in Q1 June 2008 over Q1 June 2007.
Power equipment and services firm Siemens spurted 11.48% at Rs 556.35 on reporting 107.2% surge in net profit to Rs 169.43 crore on 1.5% rise in net sales to Rs 1809.68 crore in Q3 June 2008 over Q3 June 2007.
Insurance firm Max India surged galloped 7.46% to Rs 193.80 on hopes the government, fresh from winning a confidence vote in parliament, is likely to push through reforms to boost foreign investment in insurance firms to 49% from 26% now.
Realty developer Unitech spurted 7.77% at Rs 169.25 on reports the founders of the company are looking to enter the general insurance sector and would rope in a foreign partner.
Pharmaceuticals firm Piramal Healthcare jumped 4.47% at Rs 296.60 after the company it expected to earn Rs 20 crore in revenue in two years from the sale of 'Ducray' range of skin and hair care products.
European markets, which opened after Indian markets, firmed up further after positive start. Key indices in UK, France and Germany were up 1.17% to 1.59%.
Asian markets, which opened before Indian market, were trading firm. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were up between 0.97% to 3.46%. However, China’s Shanghai Composite index was down 0.29%.
Fall in oil prices boosted US stocks on Tuesday, 22 July 2008. The Dow Jones industrial average rose 135.16 points, or 1.18%, to 11,602.50, while the Standard & Poor's 500 Index ended up 17.00 points, or 1.35%, at 1,277.00. The Nasdaq Composite Index was up 24.43 points, or 1.07%, at 2,303.96.
Rally to gain strength as government retains power, oil falls
The market is set to extend solid gains registered over the past four days after the Congress-led United Progressive Alliance (UPA) government late on Tuesday, 22 July 2008, retained power by winning trust vote in parliament. The end to political uncertainty following the trust vote will boost share prices. The government had sought trust vote after Left front early this month withdrew support. A further fall in oil prices and firm global markets will also aid further upmove on the domestic bourses.
The Indian stock market had surged sharply in the past four days ahead of the trust vote on expectations that the government will win the vote. Sensex jumped 1528.4 points or 12.15% in last four trading sessions to 14,104.20 on Tuesday, 22 July 2008, from its close of 12575.80 on 16 July 2008.
As per provisional data released by the stock exchanges, foreign funds on Tuesday, 22 July 2008, sold shares worth a net Rs 597.35 crore. Foreign funds sold shares worth a net Rs 111.90 crore on Monday, 21 July 2008, data released by market regulator Securities & Exchange Board of India (Sebi) on Tuesday, 22 July 2008, showed.
A section of the market reckons that the government may push forward economic reforms given that it has retained power without the support of Left parties. 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
But some analysts feel that a major big-bang push to reforms is unlikely as the government will focus primarily on bringing down inflation ahead of key state polls and parliamentary elections which are due in May 2009. Inflation is nearly 12% annually, its highest in more than 13 years.
A major relief for the Indian stocks and economy is cooling off of global crude oil prices from record high hit early this month. Oil was down 35 cents at $128.07 a barrel in Asia today, 23 July 2008, after falling more than $3 to a six-week low in the previous session as the threat of Hurricane Dolly to oil drillers and refiners eased, and concerns over faltering US energy demand increased. High oil and commodity prices have been a key cause for surging inflation and rising interest rates.
With political uncertainty over, the focus will now shift to quarterly review of the monetary policy by the Reserve Bank of India (RBI) on Tuesday, 29 July 2008 and Q1 results of India Inc. The results announced so far have been a mixed bag.
Fall in oil prices boosted US stocks on Tuesday, 22 July 2008. The Dow Jones industrial average rose 135.16 points, or 1.18%, to 11,602.50, while the Standard & Poor's 500 Index ended up 17.00 points, or 1.35%, at 1,277.00. The Nasdaq Composite Index was up 24.43 points, or 1.07%, at 2,303.96.
Asian stocks were firm today, 23 July 2008. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were up between 1.2% to 3.3%. The key benchmark index in China was almost unchanged.
Daily Call - July 23 2008
The markets are likely to open with a sharp upward gap of around 400 points in the Sensex, helped by an overnight ‘Trust’ Vote. Short covering could drive that still higher. For the past two sessions, the Nifty Futures had shed their discount and were quoting at a premium, indicating that shorts were anyway getting squeezed.
Expect the SP to now demand its pound of flesh. ADAG group of companies are the most well placed to shine early in this rally, followed by power equipment suppliers and the banking stocks, which should further build on their massive recent gains on hopes that the restructuring of the banks, will now happen in 2009, now that the left will not direct executive action. Small and the mid-caps, which have been resting should do the best today as rising tide will raise all boats. The morning gap will come back to haunt the markets later, but for the day, make hay while the sun shines.
Strong gains at US Market
A reversal in financial sector in the late hours helps US Market register strong gains
It was basically a day for earning reports today at US Market. A late surge in the financial sector helped US market register strong gains today, Tuesday, 22 July, 2008. Financial sector made a weak sector in the morning after earnings misses from Wachovia and American Express. But the sector turned around in the final hours of trading. Crude prices dropping to lowest levels in six weeks also added further momentum to this rally. Five out of ten sectors ended in the green today led by financials. But the energy sector was the worst performing sector.
The Dow Jones industrial Average ended the day with a good gain of 135.16 points at 11,602.5. The Nasdaq Composite Index, finished higher by 24.13 points at 2,303.96. S&P 500 finished higher by 17 points at 1,277.
Twenty-one out of thirty Dow stocks ended in the green today led by Banc of America, Caterpillar and Du-Pont. Merck and American Express continued to be two laggards for the second straight day.
Earlier in the day, Wachovia reported a larger-than-expected loss of $8.9 billion. The stock fell at the open but then recovered after investors were encouraged that the company plans to raise $5 billion in capital using organic measures, instead of a dilutive capital raise. The stock ended with a gain of 27%.
On the technology front, technology bellwether Apple fell almost 3% today after the maker of personal computers and iPod music players offered a weaker-than-expected outlook for its fourth quarter. Also, Texas Instruments slid 15% after the company reported a 4% profit fall and offered a disappointing third-quarter outlook.
Bank of America stock once again closed 13% higher today after the company’s the result easily topped Wall Street's forecast yesterday due to a lower-than-expected write-down of $1.2 billion.
On the same front, American Express too disappointed with its earnings and outlook.
Also in the earnings arena, strong emerging market demand helped Caterpillar increase earnings per share 40% year-over-year, topping estimates. UPS reported in-line earnings, relieving investors. The company called the economy "bleak," but kept its full year earnings forecast in-line with expectations.
In the healthcare sector, Merck reported better-than-expected results for its latest quarter, but continued concerns over its cholesterol drug Vytorin sent shares tumbling. United Health reported a 23% drop in earnings per share, but the results topped expectations.
All the Indian ADRs ended in the green today. ICICI Bank and HDFC Bank were the largest gainers with their ADRS soaring 13.1% and 9.9% respectively.
Crude-oil touched a six-week low today on forecasts that the tropical storm, Dolly, in the Gulf of Mexico will miss oil fields and refineries, easing concern about supply disruptions. The rebounding dollar also led further pressure on crude prices. Crude-oil futures for light sweet crude for August delivery closed at $127.95/barrel (lower by $3.09/barrel or 2.3%) on the New York Mercantile Exchange. It slipped by 5.41% to $125.63 earlier during intra day trading. Crude for August delivery expired today.
At the currency markets on Tuesday, the dollar index rebounded after dropping 0.3% yesterday on speculation borrowing costs may rise later this year. The dollar rose as much as 0.8% against a basket of six major currencies.
Volume on the New York Stock Exchange neared 1.6 billion shares, and advancers topped decliners more than 2 to 1. On the Nasdaq, more than 1 billion shares traded, and advancing issues outpaced those declining, also more than 2 to 1.
For tomorrow, a host of widely-held companies are scheduled to report their latest earnings results. AT&T, Boeing, ConocoPhillips, Whirlpool, PepsiCo and GlaxoSmithKline are among the many. No economic data are scheduled for release tomorrow.
Trading Calls - July 23 2008
Nifty (4240) Sup 4190 Res 4380
Buy BHEL (1955-1965) SL 1935 Target 1999, 2010
Buy L&T (2565-2575) SL 2545
Target 2621, 2631
Buy Adlabs (431-437) SL 428
Target 445, 450
Buy Rel Capital (1173-1183) SL 1163 Target 1210, 1220
Buy Rel Infra (916-923) SL 910
Target 935, 940
A gap-up opening likely
The man who has confidence in himself gains the confidence of others.
The bulls are likely to gain in confidence, now that the confidence motion has been won by the UPA, that too with an unexpectedly wide margin. And, we are saying this despite the four-day rally, which has seen the Sensex gain 1500 points. To add to the delight and elation of the bulls (and the Government), global cues are quite encouraging. Crude oil has come off the boil again after a potential storm missed oil facilities off the US coast. Lower oil prices has lifted the mood across global equity markets, except Europe where key indices declined. As a result, we expect a gap-up opening, and another solid day for the bulls.
The improvement in the mood may last for a few more days, provided oil prices retreat further, global markets hold and inflation cools down. On the flip side, the market could turn lower again on any fresh negative news. One must add here that the last four days of rally has been driven mainly by short-covering by bears. Also, FIIs have turned net sellers again in the last two days after pumping over Rs10bn in the two days of last week. The monsoon has been quite bad over western and southern parts of the country. This could spoil the party for the Government and the markets.
Next week, the RBI will undertake quarterly review of its annual monetary policy. Most experts see another round of tightening by the central bank to tame the inflation monster. The Government might also unveil a few more steps to check spiraling prices. This could potentially check the market's ascent, as could any unfavourable global events. We will also have the F&O expiry next week, which could make the market volatile. On the whole though, we are in for a short-term rebound, which could take the Nifty up a few hundred points. But, one must not get carried away and start buying aggressively.
On Monday, we had said "bulls and bears will make way for the horses (read MPs). More than market trading it would be horse trading or the result of the trust vote that markets will keenly watch". Media reports have been suggesting that brazen poaching is being pursued to swing the result of the confidence motion. Some of these shocking 'cash for vote' developments came to light in the Lok Sabha yesterday, with the three BJP MPs accusing SP of bribing them. The shady and sordid episode took much of the shine off the UPA's surprisingly comfortable victory.
A whole host of companies that will benefit from the Indo-US nuclear deal will see some positive action today. These include the likes of L&T, HCC, BHEL, NTPC, Tata Power, Reliance Power, Areva T&D, Alstom Projects, Siemens and ABB. The ADAG group shares may also extend their recent gains. Sesa Goa is likely to rise after announcing strong results.
Key Results Today: Aztecsoft, Crompton Greaves, Gujarat Industries Power, Infotech Enterprises, J Kumar Infraprojects, Lakshmi Machine Works, MMTC, M&M Financial, Mastek, Patni, Pidilite, Renuka Sugar, SEL Manufacturing, Sterlite Technologies and Zee Entertainment.
FIIs were net sellers of Rs5.97bn (provisional) in the cash segment on Tuesday. The local institutions pumped in Rs2.62bn. In the F&O segment, the foreign funds were net sellers of Rs3.91bn. On Monday, FIIs were net sellers of Rs1.12bn in the cash segment. Mutual funds were net sellers of Rs2bn.
Asian markets are mostly up this morning. The MSCI Asia Pacific Index gained 1.1% to 134.41 as of 10:30 a.m. in Tokyo, taking its three-day rally to 4.1%. About six stocks gained for each that declined today. Japan's Nikkei 225 Stock Average climbed 0.9% to 13,306.90.
US stocks staged a late-day rally on Tuesday, as falling oil prices overshadowed grim quarterly financial reports. Wachovia Corp. led the turnaround among financial shares after the large regional bank said it would not sell stock to raise capital.
The Dow Jones Industrial Average closed up 135 points or 1.2% at 11,602.50. The S&P 500 gained 17 points, or 1.4%, to 1,277 and has climbed 5.1% from an almost three-year low on July 15. The Nasdaq Composite Index climbed 24.43 points, or 1.1%, to 2,303.96.
Market breadth was positive. Three stocks rose for each that fell on the New York Stock Exchange.
US stocks fell right at the open of the trading day in reaction to a slew of disappointing quarterly financial reports from Wachovia, US Airways, United Airlines' parent company UAL Corp. and shipping carrier UPS. But by midmorning, crude oil prices plunged more than $5 per barrel, leading all three major indexes higher.
Adding further support were comments by Treasury Secretary Henry Paulson urging Congress to back a plan to support troubled mortgage finance giants Fannie Mae and Freddie Mac.
Oil prices closed at the lowest point since June 5, as a perceived decline in US demand again took hold and worries subsided that a storm would disrupt production in the Gulf of Mexico. Light, sweet crude for August delivery settled down $3.09 at $127.95 a barrel. Starting Wednesday, the September contract will be actively traded.
In currency trading, the dollar was up against both the 15-nation euro and the Japanese yen. In the bond market, Treasury prices sank, sending the yield for the 10-year benchmark note up to 4.10% from 4.03% late on Monday. COMEX gold for August delivery fell $15.20 to $948.50.
After the close, Yahoo reported earnings and revenue that fell short of expectations. Still, shares of the company fell more than 1% in regular trading.
Stocks in Europe dropped on the back of a sales warning by Vodafone and lower-than-expected profit by Ericsson. The pan-European Dow Jones Stoxx 600 retreated 0.5% to 280.89. UK's FTSE 100 closed down 0.7% at 5,364.10, while the French CAC 40 finished flat at 4,327.26 and Germany's DAX 30 reversed earlier losses to gain 0.3% to 6,442.79.
Defy weakness in the global markets, Indian equities continued their northbound journey. Taking into consideration today’s rally, the benchmark Sensex has gained by over 1,500 points in last four trading sessions on hopes that UPA will win the trust vote in parliament. Broad-based buying was seen in sectors such as steel, power, infra and banking stocks among the major gainers. Buying was also seen in Mid-cap and Small-cap stocks.
Among the 30-Sensex stocks, ITC, ICICI Bank, BHEL and R Com were among the major gainers. Whereas, Bharti, DLF, Maruti and JP Associates were among the notable losers. Finally, the BSE 30-share Sensex added 254 points to close at 14,104 and NSE Nifty advanced 80 points to 4240.
ADAG group rallied on hopes that government will remain in power with the support of Samajwadi Party. There is speculation that ADAG group may benefit from the promoters close ties with senior leadership of SP. RNRL, was up by 8% to Rs74, Reliance Capital was up by 8% to Rs1,177 and R Com gained b y over 5% to Rs471.
IT stocks closed higher following a sharp decline in stock prices over last couple of weeks. Wipro surged by 6% to Rs395, Educomp was up by 4% to Rs3,035, TCS advanced by 2% to Rs832 and HCL Tech was up by 4% to Rs205.
SAIL surged by over 7% to Rs134 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.
Maruti fell by over 9% to Rs588 after the company announced its Q1 results with net profit at Rs4,653mn, down by 6.8%. Concerns of margin pressure saw the stock touching day’s low of Rs585.
RIL is scouting for oil storages abroad to market the huge volume of clean products from its new refinery (BS)
Unitech is looking to venture into the general insurance sector (BS)
Ranbaxy gets clean chit in UK price rigging case (ET)
Reliance Petroleum to start production ahead of schedule (ET)
Tata Power to develop Hydel project in Bhutan (BL)
Patni Computers is eyeing companies in product engineering space (BL)
Pantaloon Retail plans major expansion in Tamil Nadu (BL)
RIL and Reliance Power bid for the same fossil-fuel reserves (DNA)
Dr Reddy’s bets big on drug discovery (BS)
Piramal Healthcare inks marketing deal with US-based firm, BioElectronics, to market the latter’s pain management equipment, Actipatch (ET)
JP Morgan Chase buys 33% stake in SPV of Alok Infrastructure, a realty subsidiary of Alok Industries (ET)
Exide Industries expects to double its supplies to automobile makers in FY10 to 5mn units (BS)
Land issues has delayed the proposed Jharkand plants of JSW Steel and Jindal Steel and Power (DNA)
Concor to set up 15 air freight stations to diversify its services and become a multimodal logistics service provider (DNA)
Hotel Leela enters into a marketing pact with US-based Preferred Hotel Group to increase its brand awareness and plans to invest US$500mn to add seven hotels in three years (DNA)
Info Edge to buy 40% stake in New Delhi-based education content developer, Applect Learning Systems, for Rs65mn (DNA)
Arvind Mills plans to float a new retail chain that will house six of its key premium brands under one roof (DNA)
NOCIL plans to increase its turnover to Rs10bn by 2012 and double its market share from 4% to 8% (DNA)
NIIT Tech is eyeing companies in the travel and insurance verticals to accelerate revenue growth (DNA)
Dalmia Cements is setting-up greenfield plants of upto 10mn tons capacity (BS)
Kamath Hotels is planning a pan-India presence for its ecotel brand The Orchid (DNA)
JK Synthetics to sell acrylic plant in Jhalawar (ET)
Kingfisher Airlines is all set to fly international locations in September (FE)
Economic Front Page
FM revises FY08 growth rate from 8.7% to 9.1% (BS)
Petroleum Ministry seeks oil bonds worth Rs506bn to partly compensate PSUs (ET)
Met coke prices treble in six months as China curbs output by 72% to control pollution before the Olympic Games (BS)
DG Shipping allows foreign flag vessels that are more than 25 years old to operate in Indian waters (DNA).
Today's Pick - Tata Elxsi
We recommend a sell in Tata Elxsi from a short-term perspective. It is evident from the charts of Tata Elxsi that it had been on a medium-term uptrend between March 2008 and June 2008 (from a low of Rs 138 to a high of Rs 223).
However, the stock encountered resistance at around Rs 220, significant resistance level in June and resumed its long-term downtrend. Later on, the stock penetrated its medium-term up trendline by declining and it continues to trend downwards.
On July 22, the stock tumbled more than 6 per cent accompanied with heavy volume, reinforcing the bearish view. The daily and weekly relative strength indexes are featuring in the bearish zone. The moving average convergence and divergence has entered into the negative territory. Moreover, the long-term down trendline is still in place.
We are bearish on the stock in the short-term. We expect the stock’s decline to prolong until it hits our price target of Rs 160 in the short-term. Traders with short-term perspective can sell the stock while maintaining stop-loss at Rs 190.
via BL
Nifty July 2008 futures at premium
Turnover spurts
Nifty July 2008 futures were at 4271.90, at a premium of 31.80 points as compared to spot closing of 4240.10. NSE's futures & options (F&O) segment turnover was Rs 54,100.84 crore, which was higher than Rs 43,942.21 crore on Monday, 21 July 2008.
Reliance Capital July 2008 futures were at premium at 1188 compared to the spot closing of 1178.60.
Tata Steel July 2008 futures were at premium at 629 compared to the spot closing of 625.60.
ICICI Bank July 2008 futures were at premium at 665.50 compared to the spot closing of 661.70.
In the cash market, the S&P CNX Nifty gained 80.60 points or 1.94% at 4240.10.
Bullion metals give up earlier gains
Lower crude price and rebounding dollar weaken precious metals
Lower crude prices and rebound in the US dollar led to lower bullion metal prices today, Tuesday, 22 July, 2008. 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 fell for the day.
Comex Gold for August delivery fell $15.2 (1.6%) to close at $948.5 ounce on the New York Mercantile Exchange. Gold earlier rose as much as 1.4% to $977 an ounce, partly as a retreat in equity markets sparked safe-haven buying. 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 13.5% till date against a 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 fell 42 cents (2.3%) to $18.005 an ounce. Silver has gained 21% 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 Tuesday, the dollar index rebounded after dropping 0.3% yesterday on speculation borrowing costs may rise later this year. The dollar rose as much as 0.8% against a basket of six major currencies.
In the crude market on Tuesday, crude-oil touched a six-week low on forecasts a tropical storm in the Gulf of Mexico will miss oil fields and refineries, easing concern about supply disruptions. Crude oil slid as much as $5.41 to $125.63 a barrel.
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 41% and 73% 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 lower by Rs 231 (1.72%) at Rs 13,074 per 10 grams. Prices rose to a high of Rs 13,465 per 10 grams and fell to a low of Rs 13,025 per 10 grams during the day’s trading.
At the MCX, silver prices for September delivery closed Rs 537 (2.1%) lower at Rs 25,163/Kg. Prices opened at Rs 25,750/kg and fell to a low of Rs 25,000/Kg during the day’s trading.
Crude at lowest levels in six weeks
Prices drop as Dolly surpasses Gulf area
Crude-oil touched a six-week low today, Tuesday, 22 July, 2008 on forecasts that the tropical storm, Dolly, in the Gulf of Mexico will miss oil fields and refineries, easing concern about supply disruptions. The rebounding dollar also led further pressure on crude prices. 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 $127.95/barrel (lower by $3.09/barrel or 2.3%) on the New York Mercantile Exchange. It slipped by 5.41% to $125.63 earlier during intra day trading. Crude for August delivery expired today. Yesterday, crude had registered the first increase in five days. Last week, prices coughed up $16.5 (11.2%). It's now 13.1% lower than the $147.27 record high hit last on Thursday, 10 July, 2008.
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 73% higher than a year ago. For the year, crude is up by 36.4% till date.
Hurricane Dolly moved toward the Texas border with Mexico, avoiding most U.S. Gulf production. Yesterday, hurricane watch was issued for the Texas coastline from Brownsville to Port O'Connor at morning time by the Miami-based hurricane center. The northern Gulf of Mexico accounts for about 25% of U.S. oil production.
On the other hand, Iran had 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. This also led to higher crude price yesterday.
At the currency markets on Tuesday, the dollar index rebounded after dropping 0.3% yesterday on speculation borrowing costs may rise later this year. The dollar rose as much as 0.8% against a basket of six major currencies.
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.
Against this backdrop, August reformulated gasoline fell 7 cents, or 2.2%, to $3.15 a gallon, and August heating oil dropped 7 cents, or 1.9%, to $3.68 a gallon.
Natural gas fell to the lowest in more than three months amid forecasts that Tropical Storm Dolly will miss production areas in the Gulf of Mexico. Natural gas for August delivery fell 44.3 cents (4.2%) to settle at $10.067 per million British thermal units.
At the MCX, crude oil for August delivery closed at Rs 5,442/barrel, lower by Rs 157 (2.8%) against previous day’s close. Natural gas for August delivery closed at Rs 430.7/mmbtu, lower by Rs 22.6/mmbtu (5%).
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