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Friday, July 25, 2008
BSE Bulk Deals to Watch - July 25 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
25/7/2008 530985 JPTSECURITII YUVAK SHARE TRADING PVT.LTD. S 29687 146.70
25/7/2008 532291 KDL BIOTECH SARVAMANGAL MERCANTILE CO LTD S 1743192 9.40
25/7/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD B 42122 19.92
25/7/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD S 243056 20.54
25/7/2008 531602 KOFF BR PICT DEEPAL CORPORATION S 67720 19.74
25/7/2008 532541 NIIT TECHNO L AND T CAPITAL COMPANY LIMITED B 496560 107.11
25/7/2008 532541 NIIT TECHNO MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S.V. S 337643 106.64
25/7/2008 531746 PRAJAY ENG S GE ASSET MANAGEMENT INCORPORATED S 259469 59.57
25/7/2008 513583 SBT INTERN VARIJ S SETHI B 225000 13.50
25/7/2008 513583 SBT INTERN KBS TRADING PVT LTD S 475000 13.52
25/7/2008 533001 SOMI CONVEY N D NISSAR B 173236 23.17
25/7/2008 533001 SOMI CONVEY VIJAY JAMNADAS VORA B 65200 23.13
25/7/2008 533001 SOMI CONVEY MEENAL NITISH THAKUR B 113177 23.42
25/7/2008 533001 SOMI CONVEY N D NISSAR S 173236 23.18
25/7/2008 533001 SOMI CONVEY MEENAL NITISH THAKUR S 113177 23.32
25/7/2008 521161 SRI LAKS SAR ANKIT BHUPENDRABHAI MEHTA B 19900 17.90
NSE Bulk Deals to Watch - July 25 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
25-JUL-2008,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,6345918,24.50,-
25-JUL-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,BUY,3321810,38.32,-
25-JUL-2008,NIITTECH,NIIT Technologies Limited,L&T CAPITAL COMPANY LIMITED,BUY,654989,107.52,-
25-JUL-2008,RADICO,Radico Khaitan Limited,J P M S L A/c Copthall Mauritius Investment Ltd,BUY,769018,77.24,-
25-JUL-2008,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,BUY,175294,155.99,-
25-JUL-2008,TFCILTD,Tourism Finance Corp ,NEO SECURITIES LTD.,BUY,772281,19.19,-
25-JUL-2008,IBSEC,Indiabulls Securities Lim,CAPITAL GROUP - A/C SMALL CAP WORLD FND INC,SELL,1514498,68.77,-
25-JUL-2008,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,5965537,24.45,-
25-JUL-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,SELL,3321810,38.35,-
25-JUL-2008,PRAENG,Prajay Engineers Syndicat,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,148541,59.76,-
25-JUL-2008,PRAENG,Prajay Engineers Syndicat,GE ASSET MANAGEMENT INCORPORATED,SELL,210000,59.62,-
25-JUL-2008,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,SELL,176394,156.07,-
25-JUL-2008,TFCILTD,Tourism Finance Corp ,NEO SECURITIES LTD.,SELL,541279,19.35,-
Post Session Commentary - July 25 2008
The domestic market ended the day in extremely negative territory due to the aggressive selling throughout of trading session. The selling pressure was fuelled on weak cues from global stock markets. The Indian market opened sharply lower tracking negative cues from the global markets and drop in crude oil prices. Light, sweet crude for September delivery raised $1.05 to close at $125.49 a barrel on the New York Mercantile Exchange. Further it slipped more and continued to trade in deep red till the end of session.
The market lost further momentum after reports of serial bomb blasts that hit the IT city Bangalore.
The BSE Sensex slipped below 14,300 and NSE Nifty closed below 4,400. From the sectoral front, heavy selling pressure was seen in the Oil & Gas, Bank, Capital Goods, Reality, Metal and Power stocks. While, FMCG and Pharma stocks were in limelight as most of the buying was witnessed from these baskets. The market breadth was negative as 1154 stocks closed in green while 1460 stocks closed in red and 77 stocks remained unchanged.
The BSE Sensex closed lower by 502.07 points at 14,274.94 and NSE Nifty ended down by 121.70 points at 4,311.85. The BSE Mid Caps and Small Cap closed with losses of 8.31 points and 17.33 points to 5,572.59 and 6,778.78 respectively. The BSE Sensex touched intraday high of 14,484.39 and intraday low of 14,210.63.
Losers from the BSE are ICICI Bank Ltd (9.62%), HDFC Bank Ltd (7.17%), Reliance (6.90%), HDFC (5.66%), JP Associates (4.50%), ONGC (4.31%), Reliance Infra (4.12%), BHEL (4.01%), DLF Ltd (3.24%) and L&T Ltd (3.16%).
The Oil & Gas index ended down by 508.98 points at 9,504.42. As Reliance (6.90%), Reliance Petroleum (4.52%), ONGC (4.31%), Reliance Natural Resources (3.34%), Gail India (2.64%) and Cairn (1.09%) closed in negative territory.
The BSE Bank index closed lower by 411.62 points at 6,751.86. Major losers are ICICI Bank Ltd (9.62%), HDFC Bank Ltd (7.17%), Bank of Baroda (6.44%), Canara Bank (4.06%), Karnataka Bank (3.79%), Yes Bank (3.41%), and Indian Kotak Bank (3.35%).
The BSE Capital Goods index lost 380.89 points to close at 11,738.27. Major lossers are ABB Ltd (7.71%), Crompton Greaves (6.51%), Punj Lloyd (4.40%), BHEL (4.01%), Havells India (3.74%) and L&T Ltd (3.16%).
The Metal index ended lower by 204.15 points at 12,492.10. Losers are Sterlite In (3.95), Sesa Goa Ltd (2.92%), Jindal Saw (2.25%), Tata Steel (2.08%), Steel Authority (1.97%), and JSW SL (1.96%).
The BSE Reality index closed down by 201.09 points at 5,029.06. As Indiabulls Real (10.21%), Purvankara (3.67%), Omaxe Ltd (3.55%), Anant Raj In (3.52%), DLF Ltd (3.24%), Parsvnath (2.80%) and Ansal Infra (2.72%) closed in negative territory.
The BSE FMCG index gained 5.43 points to close at 2,124.52. Major gainers are United Brew (6.90%), Glaxosmi Con (2.79%), Britania In (2.50%), HUL (1.91%), Tata Tea Ltd (1.54%) and Dabur India Ltd (1.38%).
Bears strike back
The bears hit back strongly and triggered a major sell-off in the market during the intra-day trades. Tracking the subdued Asian markets, Sensex began the session below its previous close, but slipped on sustained selling in frontline stocks and continued moving down. After plunging below the 14,250 mark to touch the day's low of 14,211, the market moved in a range with a negative bias. The market witnessed panic selling towards the close and Sensex ended the session with a loss of 502 points at 14,275, whereas Nifty shed 122 points and closed at 4,312.
All the sectoral indices, except BSE FMCG and BSE HC, had a weak outing. The BSE Bankex and the BSE Oil & Gas index dropped over 5% each, while the BSE Realty index, the BSE CG index, the BSE Power index, the BSE Metal index and the BSE Auto index were down over 1-3% each.
The market breadth was negative. Of the 2,691 stocks traded on the BSE, 1,447 stocks declined, 1,161 stocks advanced and 83 stocks ended unchanged. Among Sensex stocks, ICICI Bank was the major loser and tumbled by 9.62% at Rs656.85. HDFC Bank at Rs1127.15, Reliance Industries at Rs2,147.35, HDFC at Rs2,221.55, Jaiprakash Associates at Rs163.45, ONGC at Rs983, Reliance Infra at Rs984.65 and BHEL at 1,654.90 slumped over 4-7% each. Among the other major losers, DLF dropped 3.24% at Rs590.75, L&T lost 3.16% at Rs2,625.60, Tata Motors fell 2.95% at Rs426.65 and Cipla declined by 2.65% at Rs225.60. While, Ranbaxy gained 3.12% at Rs481.25, ACC gained 2.41% at Rs574.25, Hindustan Unilever, Satyam Computer Services, NTPC, Grasim Industries and Reliance Capital gained around 0.50-2%.
Banking stocks lost ground on profit taking. Axis Bank dropped 6.44% at Rs712.50, Canara Bank slumped 4.06% at Rs183.15, Karnataka Bank shed 3.79% at Rs134.65 and Yes Bank slipped by 3.41% at Rs137.35. Kotak Bank, SBI, Federal Bank and Andhra Bank also ended weak.
Over 3.34 crore Reliance Natural Resources shares changed hands on the BSE followed by Ispat Industries (1.76 crore shares), MRPL (1.41 crore shares), Nagarjuna Fertiliser (1.39 crore shares) and Chambal Fertilisers (1.23 crore shares).
RBI’s monetary policy review to set direction
Volatility may rule the roost on the bourses next week. The Reserve Bank of India (RBI)’s monetary policy review, futures & options expiry for July 2008 series, progress of monsoon, and results of key index pivotals will dictate the trend.
Soaring inflation which is hovering near 13-year high has been a key concern for the financial markets. Inflation has consistently stayed above the Reserve Bank of India (RBI)’s tolerance level of 5.5% set for the current fiscal. The Reserve Bank of India (RBI) is set to review the monetary policy on 29 July 2008. Marketmen opine that RBI may further hike short-term interest rates or the repo rate as well as statutory deposit requirements or the cash reserve ratio (CRR). RBI had increased short-term lending rates for banks and CRR by 0.5% each on 24 June 2008 to control surging inflation.
The wholesale price index (WPI)-based annual rate of inflation stood at 11.89% for the week ended 12 July 2008, marginally lower than the 11.91% reported in the previous week. The annual inflation rate was 4.76% during the corresponding week last year.
Volatility may remain high ahead of the expiry of futures & options contracts for July 2008 series on Thursday, 31 July 2008.
The progress of the monsoon will also be watched very closely, as it will influence the GDP figures. Monsoon rains were 33% below average in third week of July 2008, according to Indian Meteorological Department. The cumulative rainfall after the onset of South West Monsoon has been 2% lower than the long period average (LPA). Rains in July account for a third of the four- month monsoon season from June to September and are crucial for sowing crops. Scant rainfall is bad news for the government, which is battling runaway inflation, which has surged to a 13-year high, largely due to a sharp rise in commodity prices.
There are expectations that the government may push forward some economic reforms which had been stalled over the past four years due to opposition from Left parties, after it won trust vote in parliament on Tuesday, 22 July 2008. Left parities had stalled privatisation of state-run firms, pension reforms, higher foreign limits in insurance and more liberal norms for foreign bank. The government has retained power thanks to support from regional parties including Samajwadi Party (SP), a regional party in Uttar Pradesh.
Some analysts, however, 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.
A sharp cooling off crude oil which touched record high of $147 per barrel early this month augurs well for the Indian economy. It is currently hovering at about $126 a barrel. Any sharp rebound in oil prices would dampen the sentiment.
Q1 earnings have been a mixed bag so far. A total of 482 companies reported 14.5% rise in net profit on 34% rise in net sales in Q1 June 2008 over Q1 June 2007. The overall earnings of the corporate sector are seen rising about 15% in Q1 June 2008 over Q1 June 2007. That would be well below the 20-25% growth seen over the past few years.
Larsen & Toubro, Sterlite Industries, Sun Pharma, HDFC Bank, Oil & Natural Gas Corporation, Ranbaxy Laboratories, Cairn India, NTPC, among the frontline companies will declare their June 2008 quarterly results in the forthcoming week.
Among other companies , Indian Overseas Bank, Wockhardt, Tata Communications, Sun TV Network, Mundra Port & Special Economic Zone, Tata Tea, Bharat Petroleum Corporation, Britannia Industries, Bank of India, Kotak Mahindra Bank, Bank of Baroda, Jet Airways, Punj Lloyd, Gail India, Hero Honda Motors, Neyveli Lignite and GMR Infrastructure, will declare June 2008 quarter results.
Market extends gains for third straight week
The key benchmark indices extended gains for the third straight week in the week ended Friday, 25 July 2008, buoyed the Congress-led coalition government winning confidence vote in parliament, sharp correction in crude oil and short covering of derivatives positions.
The barometer index BSE Sensex gained 639.54 points or 4.69% to 14,274.94 in the week ended Friday, 25 July 2008. The S&P CNX Nifty edged up 219.60 points or 5.36% to 4,311.85 in the week.
The BSE Mid-Cap index rose 333.20 points or 6.35% to 5,572.59. The BSE Small-Cap index advanced 322.89 points or 5.01% to 6778.78.
Foreign institutional investors (FIIs) were net buyers to the tune of Rs 43 crore in the month of July 2008 so far, till 24 July 2008. FIIs sold shares worth Rs 25,422.30 crore in the calendar year 2008. Mutual funds have bought shares worth Rs 882.20 crore in the month of July 2008 so far, till 23 July 2008.
Trading for the week started on an upbeat note. The 30-share BSE Sensex gained 214.64 points or 1.57% at 13,850.04 and the broader based S&P CNX Nifty advanced 67.25 points or 1.64% at 4159.50 on Monday, 21 July 2008. Index pivotals were in demand on strong rally in Asian stocks.
Market extended gains on Tuesday, 22 July 2008 ahead of the government's trust vote in parliament. The 30-share BSE Sensex advanced 254.16 points or 1.84% at 14,104.20 and the broader based S&P CNX Nifty advanced 80.6 points or 1.94% at 4240.10, on that day.
Markets galloped on Wednesday, 23 July 2008 after the Congress-led coalition government won a confidence vote in parliament late on Tuesday, 22 July 2008, raising hopes for economic reforms. The 30-share BSE Sensex surged 838.08 points or 5.94% at 14,942.28 and the broader based S&P CNX Nifty advanced 236.70 points or 5.58% at 4476.80, on that day.
The market snapped its five-day rally on Thursday, 24 July 2008 as investors booked profits at higher level. The 30-share BSE Sensex lost 165.27 points or 1.11% at 14,777.01 and the broader based S&P CNX Nifty fell 43.25 points or 0.97% at 4433.55, on that day.
The market extended losses on Friday, 25 July 2008 following overnight sharp setback in US stocks. The sentiment was also hit by seven blasts that took place in Bangalore. The 30-share BSE Sensex lost 502.07 points or 3.40% at 14,274. 94 and the broader based S&P CNX Nifty fell 121.70 points or 2.74% at 4311.85, on that day.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 1.64% to Rs 2147.35 in the week. RIL reported 13.2% growth in net profit to Rs 4110 crore on 40.65% increase in total income to Rs 41,805 crore in Q1 June 2008 over Q1 June 2007. The results were announced after market hours on 24 July 2008.
India’s second largest listed telecom services provider by sales Reliance Communication galloped 15.60% to Rs 503.10 after it called off tie-up talks with South Africa's MTN Group, Africa's biggest mobile phone group, citing legal issues.
However, India’s largest listed cellular services provider by sales Bharti Airtel fell 0.69% at Rs 796.45. The company reported 44.86% growth in net profit to Rs 2046.79 crore on a 39.72% increase in revenue to Rs 7952.32 crore in Q1 June 2008 over Q1 June 2007.The company announced the results before trading hours on 24 July 2008.
Banking shares advanced in anticipation of reforms in the banking sector after the UPA government won trust vote in parliament. India’s largest private sector bank by assets ICICI Bank rose 6.36% to Rs 656.85 and India’s second largest private sector bank by assets HDFC Bank rose 9.06% to Rs 1127.15
India’s largest state run bank by assets State Bank of India vaulted 11.47% to Rs 1448.75. The Union cabinet approved the merger of unlisted State Bank of Saurashtra with its parent State Bank of India (SBI) on Thursday, 24 July 2008.
India’s largest drug maker by sales Ranbaxy Laboratories surged 10.01% at Rs 481.25 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.
India's largest passenger carmaker by sales Maruti Suzuki (India) slipped 1.50% to Rs 614.40. 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. The company announced the results after trading hours on 21 July 2008.
India's largest power equipment maker by sales Bharat Heavy Electricals (Bhel) advanced 8.15% at Rs 1654.90. 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. The company announced the results after trading hours on 21 July 2008.
World’s sixth largest steel maker Tata Steel climbed 4.26% at Rs 617.90 after its Thailand unit reported a surge in quarterly net profit and on expectations for a domestic price rise.
Shares of firms which are potential beneficiaries of the Indo-US nuclear deal surged after the Indian government won parliamentary vote of confidence clearing the way for the landmark civilian nuclear deal with the US. Reliance Infrastructure (up 15.08% to Rs 984.65), Alstom Projects India (up 6.60% to Rs 428.70), Rolta India (up 5.41% to Rs 288.60), Walchandnagar Industries (up 4% to Rs 267.70), Areva T&D India (up 12.56% to Rs 1655.25), Larsen & Toubro (up 3.16% to Rs 2625.60), National Thermal Power Corporation (up 8.19% to Rs 187.50), surged.
Among mid-cap stocks, McDowell Holding (up 48.73% to Rs 141), Phoenix Mills (up 45.29% to Rs 165.85), ITI (up 44.42% to Rs 38.20), Reliance Natural Resources (up 38.11% to Rs 95.50), Adlabs Films (up 26.83% to Rs 528.05), HMT (up 41.82% to Rs 75.45), and Strides Arcolabs (up 38.56% to Rs 190.45), surged.
Inflation based on the wholesale price index rose 11.89% in 12 months to 12 July 2008, below the previous week's annual rise of 11.91%, government data released on 24 July 2008 showed. Inflation for the week ended 17 May 2008 was revised upwards to 8.66% from 8.10%.
Participating in a debate on the trust motion in parliament, Finance Minister P Chidambaram on 22 July 2008, said the gross domestic product (GDP) growth in the fiscal year 2007/08 was close to 9.1%. He said the government has targeted farm credit of 2.8 trillion rupees ($65 billion) for the fiscal year ending in March 2009. Debt waiver of Rs 66,477 crore was granted to farmers so far, he said.
Sensex shed 502 points on weak global cues; ICICI Bank, RIL tumble
The market slumped today after reports filtered of seven blasts in Bangalore in afternoon. Weak global cues and profit booking by investors after a recent sharp surge in a short span also weighed on the indices. Index pivotals ICICI Bank and Reliance Industries plunged.
As per provisional data released by the stock exchanges after trading hours, foreign funds today, 25 July 2008, sold shares worth a net Rs 565.73 crore. Domestic funds sold shares worth a net Rs 302.41 crore.
The 30-share BSE Sensex fell 502.07 points or 3.40% at 14,274.94. The index lost 566.38 points at the day's low of 14,210.63, hit in late trade. Sensex lost 292.62 points at the day's high of 14,484.39, hit in early trade.
The broader based S&P CNX Nifty slipped 121.7 points or 2.74% at 4311.85. Nifty July 2008 futures were at 4441.90, at a premium of 13.45 points as compared to spot closing.
US stocks declined sharply on Thursday, 24 July 2008, after a report showing yet another drop in US home sales prompted investors to take profits in financial shares, which had rallied over the past week. The Dow Jones industrial average fell 283.10 points, or 2.43%, to close at 11,349.28. The Standard & Poor's 500 Index slid 29.65 points, or 2.31%, to 1,252.54, while the Nasdaq Composite Index shed 45.77 points, or 1.97%, to 2,280.11.
One person was killed and several persons have been injured in seven blasts in the outskirts of Bangalore today afternoon. Although the police have not yet been able to ascertain the cause of the blast, reports suggest that it may be an act of terror.
Oil rose above $126 a barrel on Friday, 25 July 2008, extending a rebound a day earlier that helped stem a nearly two-week dive as buyers crept back into the market before the weekend, superceding lingering demand worries. Crude oil for September delivery was at $126.35 a barrel, up 86 cents, on the New York Mercantile Exchange (NYMEX) at 16:56 IST.
European markets, which opened after Indian market, were in red. Key benchmark indices in UK, France and Germany were down 0.90% to 1.48%. Asian markets, which opened before Indian market, dropped. Key benchmark indices in Hong Kong, Japan, South Korea, China and Singapore were down by between 1.50% to 1.97%.
The BSE Mid-Cap index fell 0.15% to 5,572.59 and the BSE Small-Cap index was down 0.25% to 6,778.78. Both these indices outperformed the Sensex.
The barometer index BSE Sensex is down 6012.05 points or 29.63% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6931.83 points or 32.68% away from its all-time high of 21,206.77 struck on 10 January 2008.
The market breadth was negative on BSE with 1154 shares advancing as compared to 1460 that declined. 77 remained unchanged.
BSE clocked a turnover of Rs 5834 crore as against Rs 7,445.07 on Thursday, 24 July 2008. NSE's futures & options (F&O) segment turnover was Rs 53,163.45 crore, which was lower than Rs 58129.42 crore on Thursday, 24 July 2008.
India’s largest private sector bank by assets ICICI Bank slumped 9.62% to Rs 656.85 after its American depository receipt (ADR) fell more than 10% in the US market yesterday. The stock is witnessing a major selling pressure since Thursday, 24 July 2008 after it rose nearly 42% to Rs 738.25 in just five trading session to Wednesday, 23 July 2008 from Rs 519.60 on 16 July 2008. The stock lost 1.55% on Thursday, 24 July 2008.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries slipped 6.90% to Rs 2147.35 after the company met forecasts with a 13% rise in quarterly profit, but analysts were still disappointed after four quarters of 20%-plus earnings growth. The firm posted 13.2% growth in net profit to Rs 4,110 crore on a 41% growth in turnover to Rs 41,805 crore in Q1 June 2008 over Q1 June 2007. Nearly 95% of the increase in turnover was due to increase in prices, with volume increases accounting for the rest, said a press release from the company.
Other major Sensex losers were, HDFC Bank (down 7.17% at Rs 1127.15), Housing Development Finance Corporation (down 5.66% at Rs 2221.55), Jaiprakash Associates (down 4.50% at Rs 163.45), ONGC (down 4.31% at Rs 983), and Bharat Heavy Electricals (down 4.01% at Rs 1654.90).
Top Sensex gainers were, Ranbaxy Laboratories (up 3.12% at Rs 481.25), ACC (up 2.41% at Rs 574.25), Hindustan Unilever (up 1.91% at Rs 232.20), Grasim Industries (up 0.70% at Rs 1842.95), and Satyam Computer (up 1.41% at Rs 374.55).
Banking shares dropped. Axis Bank (down 6.44% at Rs 712.50), Canara Bank (down 4.06% at Rs 183.15), Yes Bank (down 3.41% at Rs 127.35), Kotak Mahindra Bank (down 3.35% at Rs 559.65), and State Bank of India (down 2% at Rs 1448.75), slipped. The BSE Bankex underperformed the Sensex, falling 5.75% to 6,751.86.
Oil & gas stocks declined sharply after crude oil prices bounced back from recent low. Reliance Petroleum (down 4.52% at Rs 159.65), GAIL (India) (down 2.64% at Rs 366.65), Reliance Natural Resources (down 3.34% at Rs 95.50 ), Cairn India (down 1.09% at Rs 221.85), and HPCL (down 0.20% at Rs 229.70), slipped. The BSE Oil & Gas index underperformed the Sensex, falling 5.08% to 9,504.42.
Realty shares slipped. Indiabulls Real Estate (down 10.21% at Rs 294.65), Housing Development & Infrastructure (down 6.20% at Rs 473), and DLF (down 3.24% at Rs 490.75), declined. The BSE Realty index underperformed the Sensex, falling 3.84% to 5,029.06.
Mangalore Refinery & Petrochemicals jumped 16.07% to Rs 67.45 after its net profit surged 129.4% to Rs 845.39 crore on a 42.9% increase in sales to Rs 10662.46 in Q1 June 2008 over Q1 June 2007. The firm declared the results during market hours today.
Container handler Gateway Distriparks rose 0.53% to Rs 85.15 after its board approved buyback of shares at a price not exceeding Rs 110 per share for an aggregate amount of Rs 64 crore.
Media firm TV Today Network surged 12.64% to Rs 107.80 after the company said its board will meet on 31 July 2008 to consider buyback of equity shares.
Chemicals maker Balaji Amines was locked at 20% upper limit at Rs 120.20 after the company posted 67.2% rise in net profit to Rs 5.15 crore on 48.6% increase in net sales to Rs 73.08 crore in Q1 June 2008 over Q1 June 2007.
Reliance Industries clocked the highest turnover of Rs 443.93 crore on BSE. Reliance Capital (Rs 374.65 crore), Reliance Natural Resources (Rs 321.39 crore), Reliance Petroleum (Rs 195.87 crore), and Reliance Infrastructure (Rs 166.42 crore), were the other turnover toppers on BSE in that order.
Reliance Natural Resources reported the highest volume of 3.34 crore shares. Ispat Industries (1.76 crore shares), Mangalore Refinery & Petrochemicals (1.41 crore shares), Nagarjuna Fertilizers & Chemicals (1.39 crore shares), and Chambal Fertilizers & Chemicals (1.23 crore shares), were the other volume toppers on BSE in that order.
Inflation based on the wholesale price index rose 11.89% in 12 months to 12 July 2008, a tad lower than previous week's annual rise of 11.91%, government data released. Although, the annual inflation rate held just below previous week’s level the rate has not cooled enough to banish expectations of monetary tightening next week, reports suggest. The Reserve Bank of India (RBI) holds a review on Tuesday, 29 July 2008 and market expects it to raise the key lending rates to cool effects of higher fuel prices.
Pre Session Commentary - July 25 2008
The Indian Market is expected to have negative opening due to the weak global cues as US market ended with huge losses and Asian markets are trading on back foot. Increase in crude oil price will also add to the negative sentiment . On Thursday, the Indian market closed with losses. The domestic market opened on positive note tracking positive global cues, but was not able to sustain the momentum and slipped to negative territory. Further continuous selling led the market to close on down beat note due to the inflation worries. The BSE Sensex touched the 15,000 mark during early trading but ended below 14,800 and NSE Nifty closed below 4,500. From the sectoral front, the Oil & Gas index index was in limelight as was able go gain favor from market. While the Metal, Capital Goods, bank and IT stocks remained out of favor as witnesses most of the selling from these baskets. The BSE Sensex closed lower by 165.27 points at 14,777.01 and NSE Nifty ended down by 49.20 points at 4,433.55. We expect that market decline further during the trading session.
Inflation for the week ended 12th July 2008, eased marginally by 0.02% and stood at 11.89 % in comparison to 11.91% of previous week. The wholesale price index-based inflation declined marginally mainly on account of lower prices of imported edible oils, cotton seed oil, groundnut oil and spices.
On Thursday, the US market closed with losses due to the rise in crude oil prices and weak home sales data that hit a 10-year low. Light, sweet crude for September delivery raised $1.05 to close at $125.49 a barrel on the New York Mercantile Exchange. The sales of existing homes dropped by 2.60% in June, in comparison to the previous month, to an annualized rate of 4.86 million, according to the National Association of Realtors.
The Dow Jones Industrial Average (DJIA) closed lower by 283.10 points at 11,349.28 along with NASDAQ ended down by 45.77 points at 2,280.11 and S&P 500 index closed lower by 29.65 points at 1,252.54.
Indian ADRs ended down. In technology sector, Satyam ended lower by (5.79%) along with Infosys by (5.40%), Wipro by (5.01%) and Patni Computers down by (2.49%). In banking sector, ICICI bank and HDFC bank lost (10.59%) and (8.27%) respectively. In telecommunication sector, Tata Communication ended down by (6.57%) while MTNL ended higher by (2.51%). Sterlite industries decreased by (8.97%).
Today the major stock markets in Asia are trading weak for the first time in five days on the concern of increase in credit market losses and Wall Street losses over night. Hang Seng index is trading lower by 361.42 points at 22,726.30 along with Japan’s Nikkei trading down by 209.50 points at 13,393.81 and Taiwan Weighted trading at 7,222.01 dropped by 146.07 points.
The FIIs on Thursday stood as net buyer in equity and net seller in debt. The gross equity purchased was Rs6,017.90 Crore and the gross debt purchased was Rs253.83 Crore while the gross equity sold stood at Rs4,382.30 Crore and gross debt sold stood at Rs306.00 Crore. Therefore, the net investment of equity reported was Rs1,635.00 Crore and net debt was (Rs52.20) Crore.
Today, Nifty has support at 4,288 and resistance at 4,496 and BSE Sensex has support at 14,289 and resistance at 15,046.
Sharp fall in global indices indicate negative open
Weakness across the global markets and rising global crude oil prices may drag down the local indices. Nervousness in the market is likely to continue following a slump in the overnight US market, escalating global crude oil prices and weak Asian indices in the morning trades. All the leading Asian indices like the Nikkie, the Hang Seng, the Straits Times, the Kopsi index and the Jakarta index are down over 2% each. Although the domestic indices moved up sharply in the last couple of sessions, intra-day volatility remains the major concern. Among the local indices, the Nifty may slip to 4375 while on the upside it could test the 4490 level. The Sensex has a likely support at 14600 and could test higher levels at 15000.
On the results front RNRL, Ceat, ABB, UBI, Alstom Project, Ambujha Cement, Andhra Bank, Educomp, Grasim Industries, I-Flex, Hind Motors, MRPL, RPower, Tata Power, Oreintal Bank, Nagarjna Fertlizers, SRF, Jindal Steel and mnay more are scheduled to announce their numbers.
US indices tumbled on Thursday, as the Dow Jones slumped 283 points to close at 11349 while the Nasdaq ended 46 points lower at 2280.
All the Indian ADRs fell in tune with the broader market. ICICI Bank led the slump and tumbled 10.59% followed by HDFC Bank down by 8.27%, Tata Motors, VSNL, Infosys, Rediff, Satyam and Wipro slipped over 5-6% each. Dr Reddy's Lab and Patni Computer dropped over 2% each. However, MTNL gained 2.51%.
The Nymex light crude oil for September delivery gained by $1.05 and closed at $125.49 per barrel. In the commodity space, the Comex gold for August series tumbled 10 cent to settle at $922.70 an ounce.
Market to track weak global cues
An overnight sharp fall in US stocks and rise in oil prices will trigger weak opening on the domestic bourses today. Reliance Industries (RIL) announced a 13.2% rise in net profit in Q1 June 2008 after trading hours on Thursday, 24 July 2008, more or less in line with market expectations.
With inflation showing signs of stabilizing, the Reserve Bank of India (RBI) is seen refraining from raising interest rates at its quarterly monetary policy review on Tuesday, 29 July 2008. RBI is, however, is seen raising banks’ cash reserve ratio (CRR) by 25 to 50 basis points at the monetary policy review.
Inflation based on the wholesale price index rose 11.89% in 12 months to 12 July 2008, below the previous week's annual rise of 11.91%, government data released after trading hours on Thursday, 24 July 2008, showed. Inflation for the week ended 17 May 2008 was revised upwards to 8.66% from 8.10%
As per provisional data released by the stock exchanges, foreign funds on Thursday, 24 July 2008, bought shares worth a net Rs 272.36 crore. Foreign funds bought shares worth a net Rs 1635.60 crore on Wednesday, 23 July 2008, data released by the market regulator Securities & Exchange Board of India (Sebi) after trading hours on Thursday, 24 July 2008, showed.
The Q1 June 2008 results announced so far have been a mixed bag. The combined net profit of 479 Indian firms rose 14.8 % to Rs 25790 crore on 33.9% growth in sales to Rs 210050 crore in Q1 June 2008 over Q1 June 2007.
US stocks declined sharply on Thursday, 24 July 2008, after a report showing yet another drop in US home sales prompted investors to take profits in financial shares, which had rallied over the past week. The Dow Jones industrial average fell 283.10 points, or 2.43%, to close at 11,349.28. The Standard & Poor's 500 Index slid 29.65 points, or 2.31%, to 1,252.54, while the Nasdaq Composite Index shed 45.77 points, or 1.97%, to 2,280.11.
US oil futures rose $1.05 to settle at $125.49 a barrel on Thursday, 24 July 2008, after a drop of more than 5% over the previous two sessions. Earlier during Thursday's NYMEX session, oil hit an intraday high above $126.
Asian stocks were in the red today, 25 July 2008. Key benchmark indices in Hong Kong, Japan, South Korea, China and Singapore were down by between 1.1% to 2.27%.
Morning Call - July 25 2008
Market Grape Wine :
In House :
Nifty at a support at 4335 and 4266 with a resistance of 4550 and 4625.
CASH:
SELL: RPL below 167 with a tgt of 158 with a s/l of 176
SELL: CHAMBALFERT below 68 with a tgt of 63 with a s/l of 72
FUTURE:
SELL: RELCAP below 1385 with a tgt of 1325 with a s/l of 1420
SELL: LICHOUSING below 302 with a tgt 280 with a s/l of 311
Out House:
Markets at a support of 14414 & 14541 levls with resistance at 14786 & 15015 levels .
Buy : RIL at dips
Buy : RPL at dips
Buy : RNRL
Buy : LT at dips
Buy : ITC & HLL
Buy : SBIN at dips
Buy : HDFC at dips
Buy : Core project
Dark Horse : ITC , RelCap , RIL , IciciBank ,Core , NTPC & HLL
TGIF : Thank God its Friday : Markets consolidating buy low sell high call for the day .
Trading Calls - July 25 2008
Nifty (4434) Sup 4350 Res 4490
Sell HCL Tech (210) SL 214
Target 203, 201
Sell Satyam (369) SL 374
Target 360, 357
Sell Rel Cap (1383) SL 1408
Target 1340, 1325
Sell Sun TV (282) SL 286
Target 272, 270
Buy Voltas (128) SL 124
Target 134, 136
Today's Pick - MTNL
We recommend a buy in Mahanagar Telephone Nigam Ltd (MTNL) from a short-term perspective. It is evident from the charts of MTNL that from its 52-week high of Rs 219, the stock tumbled steeply during January 2008. This down-move continued until the stock found support at Rs 83 in early July. Since then it has been charting a short-term uptrend. We notice that the stock has formed a falling wedge pattern (a bullish pattern), spanning over the past five months. On July 24, th e stock broke out of this falling wedge pattern by gaining 7 per cent with extraordinary volume. The stock is trading well-above its 21- and 50-day moving averages. The daily relative strength index (RSI) is featuring in the bullish zone. The weekly RSI is displaying a prolonged positive divergence and has entered into the neutral region from the bearish zone. The moving average convergence and divergence has entered into the positive territory. Our short-term forecast of the stock is bullish. We expect the stock to move up until it hits our price target of Rs 115 in the upcoming trading sessions. Traders with short-term perspective can buy the stock, while maintaining a stop-loss at Rs 98.
Bullion metals register marginal drop
Relatively strong US dollar continue to tarnish the image of precious metals
The relatively strong US dollar led bullion metals close marginally lower today, Thursday, 24 July, 2008. Yesterday, gold prices had dropped the most in almost six weeks. Lower crude price and rebound in US dollar had reduced precious metals’ appeal against a hedge against inflation and prices had lost almost $40 on past couple of days. Before that, 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.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies.
Comex Gold for August delivery fell $0.5 (0.5%) to close at $922.2 ounce on the New York Mercantile Exchange. 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 10.3% till date against a 10% 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 16 cents (0.8%) to $17.3 an ounce. Silver has gained 17.2% in 2008 till date. For the second quarter, it had gained a paltry 1.4%.
Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.
At the currency markets on Thursday, the greenback rallied sharply against the New Zealand dollar, or kiwi, after the Reserve Bank of New Zealand surprised markets by reducing its benchmark interest rate for the first time in five years. The dollar index, a measure of the greenback against a trade-weighted basket of currencies, rose to an intraday high of 73.02 by the close of metals trading, but it recently fell back 0.1% to 72.87.
In the crude market on Thursday, crude-oil futures rose for first time in three sessions, up 0.8% following their $20 decline over the past seven sessions that had sent the benchmark contract to its lowest level in seven weeks. Crude oil for September delivery gained $1.05, or 0.8%, to end at $125.49 a barrel on the Nymex.
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 36% and 66% 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 20 (0.15%) at Rs 12,624 per 10 grams. Prices rose to a high of Rs 12,708 per 10 grams and fell to a low of Rs 12,530 per 10 grams during the day’s trading.
At the MCX, silver prices for September delivery closed Rs 178 (0.7%) lower at Rs 24,275/Kg. Prices opened at Rs 24,400/kg and fell to a low of Rs 24,050/Kg during the day’s trading.
Crude prices rise for first time in three sessions
Natural gas prices tumble more than 5% on more than expected inventory buildup
Crude prices rose for the first time in three sessions today, Thursday, 24 July, 2008. Prices rose after the relatively strong dollar weakened in the late hours. Prices were also supported by tensions in Nigeria, the fifth largest foreign oil supplier to the U.S.
Crude-oil futures for light sweet crude for September delivery closed at $125.49/barrel (higher by $1.05/barrel or 0.8%) on the New York Mercantile Exchange. Earlier in the day, it touched an intra day high of $ 126.5. Before today, prices gave up more than $7 in the past two sessions. Last week, prices coughed up $16.5 (11.2%). It's now 15% 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 66% higher than a year ago. For the year, crude is up by 34% till date.
At the currency markets on Thursday, the greenback rallied sharply against the New Zealand dollar, or kiwi, after the Reserve Bank of New Zealand surprised markets by reducing its benchmark interest rate for the first time in five years. The dollar index, a measure of the greenback against a trade-weighted basket of currencies, rose to an intraday high of 73.02 by the close of metals trading, but it recently fell back 0.1% to 72.87.
EIA reported yesterday in its weekly inventory report today that U.S. crude inventories fell less than expected last week and fell 1.6 million in the week ended 18 July. Market expected a figure around 2 million. At 295.3 million barrels, U.S. crude-oil inventories are in the lower half of the average range for this time of year.
As per the report, U.S. crude-oil imports averaged 9.8 million barrels per day last week, down 985,000 barrels per day from the previous week. U.S. refineries operated at 87.1% of their operable capacity last week. The EIA also reported U.S. gasoline supplies rose by 2.9 million barrels in the latest week, and distillate stocks gained by 2.4 million barrels.
EIA data also showed that an economic slowdown is taking toll on energy demand. Over the past four weeks, U.S. motor gasoline demand has averaged 9.3 million barrels per day, down by 2.4% from the same period last year.
Against this background, September reformulated gasoline rose 0.7% to $3.08 a gallon and September heating oil ended at $3.58 a gallon.
EIA reported the latest status in natural gas inventories today. August natural gas futures fell 5.17 to $9.23 per million British thermal units. Earlier it fell more than 8% to an intraday low of $8.88. EIA had reported that U.S. natural gas inventories rose 84 billion cubic feet in the week ended 18 July against an expected buildup of 78 billion cubic feet.
At the MCX, crude oil for August delivery closed at Rs 5,307/barrel, lower by Rs 35 (0.7%) against previous day’s close. Natural gas for August delivery closed at Rs 394.4/mmbtu, lower by Rs 33.6/mmbtu (7.8%).
ICICI Bank, RPower July 2008 futures at discount
Turnover drops
Nifty July 2008 futures were at 4441.90, at a premium of 8.35 points as compared to spot closing of 4433.55. NSE's futures & options (F&O) segment turnover was Rs 58,129.42 crore, which was lower than Rs 68,010.68 crore on Wednesday, 23 July 2008.
ICICI Bank July 2008 futures were at discount at 727.40 compared to the spot closing of 730.20.
Reliance Power (RPower) July 2008 futures were at discount at 175.20 compared to the spot closing of 176.
State Bank of India July 2008 futures were near spot price at 1478.20 compared to the spot closing of 1478.80.
In the cash market, the S&P CNX Nifty shed 43.25 points or 0.97% at 4433.55.
Global weakness to hit sentiment
There are two ways of spreading light: to be the candle or the mirror that reflects it.
Just when the bulls were beginning to see light at the end of tunnel, comes yet another jolt from the US market, mainly on account of grim economic data. The Dow Jones Industrial Average slumped by nearly 300 points after two days of gains. Jobless claims surged and existing home sales slid more than forecast, to touch a 10-year low. Ford shares plunged the most since August 2000 after reporting a loss of $8.7bn, twice as big as analysts estimated.
Markets also tumbled in Europe on the back of weak economic reports, and on Daimler's poor earnings outlook. Meanwhile, Brazil's benchmark stock index slid into a bear market. Markets in Asia are down 1.5-2% this morning. Japan's consumer prices rose at the fastest pace in a decade in June on higher food and gasoline costs. South Korea's economy grew 0.8% in the April-June quarter over the previous quarter.
Coming to the Indian market, the main stock indices broke a five-session rally during which the Sensex had surged by over 2,300 points. Traded volume and turnover were down from Wednesday. Market breadth was negative. Oil & Gas stocks were the only notable gainers. Select Real Estate shares also gained, while the Auto index was flat. Metals, IT, Power, Capital Goods, Banking and FMCG were the top losers.
FIIs were net buyers in the cash segment even as local institutions remained net sellers. Another encouraging factor is that the southwest monsoon appears to have revived over the western parts after a protracted lull. The market could stay firm if the situation on this front keeps improving over the next few days and even weeks. A good kharif harvest will soften the spiraling food inflation.
Meanwhile, talk of the Government pursuing its unfinished reform agenda is gathering momentum. The Finance Minister has made no bones about the Centre's intention to push ahead with bills on insurance, banking and pension. A few divestments through the public issue route are possible. The Government could be tested on this front and one will have to adopt a wait-and-watch approach. Any positive movement on reforms will boost market sentiment.
The fate of the Indo-US nuclear deal too is as yet undecided, though both the sides are keen to close the pact as early as possible. The other worry is that interest rates could inch higher as the RBI may announce further tightening next week despite tight cash conditions in the money markets. We expect the market to fall at open, given the
Key Results Today: 3i Infotech, ABB, Alstom Projects, Ambuja Cement, Andhra Bank, CEAT, Dredging Corporation, Educomp, Engineers India, Gateway Distriparks, Godrej Consumers, Grasim, Gujarat State Petronet, Hindustan Unilever, HCC, i-flex, Indiabulls, Indian Hotels, IndusInd Bank, IPCA Labs, JB Chem, Jindal Steel, Karnataka Bank, Karur Vysya Bank, MRPL, Mphasis, Nagarjuna Fertilizers, Noida Toll Bridge, OBC, Redington, RNRL, RPower, SRF, Tata Power, Union Bank and UB.
FIIs were net buyers of Rs2.73bn in the F&O segment yesterday while the local funds pulled out Rs6.09bn. In the F&O segment, they were net buyers of Rs393.2mn. On Wednesday, FIIs were net buyers of Rs16.36bn in the cash segment. Mutual funds were net buyers of Rs3.34bn on the same day.
US stocks fell sharply on Thursday, as investors reacted to gloomy data on the housing sector and the job market. Financial shares suffered their worst drop in eight years, after home sales slid more than forecast and investor Bill Gross predicted the housing slump will cost banks and brokerages $1 trillion.
Citigroup, Bank of America and Goldman Sachs retreated and shares of builders posted their biggest decline ever as a report showed sales of previously owned homes fell to the lowest level in a decade.
The Standard & Poor's 500 Index dropped the most since June 26, losing 29.65 points, or 2.3%, to 1,252.54. The Dow slid 283.1 points, or 2.4%, to 11,349.28. The Nasdaq Composite Index tumbled 45.77 points, or 2%, to 2,280.11.
Market breadth was overwhelmingly negative. Five stocks fell for each that gained on the New York Stock Exchange.
Oil prices rose $1.05 to settle at $125.49 after falling nearly $4 on Wednesday on continued concerns about reduced demand. Oil has plummeted about $22 from its high of $147.27 set on July 11.
The average price of a gallon gasoline fell 1.6 cents to $4.026 a gallon in the United States, declining for the 7th straight day, according to a daily survey from motorist advocacy group AAA.
In currency trading, the dollar continued to rise against European currencies. The US currency rose against the euro and British pound, but fell slightly against the Japanese yen. COMEX gold for August delivery fell 50 cents to settle at $922.30 an ounce.
Treasury prices rose, bringing the yield on the benchmark 10-year note down to 4.01%.
Across the Atlantic, the pan-European Dow Jones Stoxx 600 slipped 1.6% to 282.21, with selling picking up late in the session after US existing-home sales dropped to a 10-year low. The UK FTSE 100 slipped 1.6% to 5,362.30 and the French CAC 40 fell 1.4% to 4,347.99.
The Ifo Institute's German business climate fell to a three-year low and other European economic indicators also pointed to slowing growth. However, shares of Swiss financial major Credit Suisse jumped after its earnings beat consensus estimates.
Brazilian equities entered into a bear market on Thursday, stoked by a bigger-than-expected interest-rate hike. Mexican stocks fell to a seven-month low following a report of higher inflation.
Brazil's Bovespa fell 3.3% to 57,434.37, its lowest closing level since late January. The benchmark Brazilian equity index has now lost 22% since hitting its high of 73,516.81 on May 20. Mexico's IPC index finished down 2.7% at 26,878.19, its worst finish since Jan. 18.
Markets snapped five day rally on Thursday led by profit booking in the IT and the Metal stocks. Rising rupee again had an impact on the IT stocks and heavyweights like Tata Steel and SAIL led the down fall in the Metal stocks. Finally, the benchmark Sensex sharply fell almost 375 points from day’s high to close at 14,777 losing 165 points and Nifty slipped ~110 points from its days high to close at 4,433 losing 42 points.
Among the 30-scrips of Sensex, 22 stocks were in red and only 8 stocks were in green. Reliance industries, ONGC, HDFC Bank and DLF were among the major gainers. Among the major laggards were, SBI, Infosys, Tata Steel and RCom.
Shares of ACC declined by over 5% to Rs560 after the company’s total Income decreased from Rs19,113.6mn for the quarter ended June 30, 2007 to Rs18,690.3mn for the quarter ended June 30, 2008.
However, it posted a net profit of Rs2714.242mn for the quarter ended June 30, 2008 as compared to Rs3458.333mn for the quarter ended June 30, 2007.The scrip touched an intra-day high of Rs599 and a low of Rs552 and recorded volumes of over 2,00,000 shares on BSE.
Shares of Hindustan Zinc dropped by 3.7% to Rs531 after the company posted net profit of Rs8478.10mn for the quarter ended June 30, 2008 as compared to Rs12,113.60 million for the quarter ended June 30, 2007. Total Income decreased from Rs22,660.60mn for the quarter ended June 30, 2007 to Rs18,530.40mn for the quarter ended June 30, 2008. The scrip touched an intra-day high of Rs563 and a low of Rs525 and recorded volumes of over 71,000 shares on BSE.
Shares of SCI surged by over 5.5% to Rs229 after the company announced that it secured approval from the government to buy four bulk carriers for US$238.2mn. The company will buy Panamax carriers of 80,000 dead weight tons each to replace its old fleet, the government said. The scrip touched an intra-day high of Rs231 and a low of Rs220 and recorded volumes of over 5,00,000 shares on BSE.
Sobha Developers surged by over 4% to Rs264 after the board of directors of the company unanimously decided to issue shares on Rights basis, to the existing shareholders up to Rs3,500mn. The scrip touched an intra-day high of Rs275 and a low of Rs259 and recorded volumes of over 3,00,000 shares on BSE.
Shares of United Breweries rallied by over 14% to Rs320 after the company announced its results for the quarter ended June 30, 2008 with net profit after tax of Rs88.60mn for the quarter ended June 30, 2008 as compared to Rs294.60mn for the quarter ended June 30, 2007. Total Income decreased from Rs1079.70mn for the quarter ended June 30, 2007 to Rs710mn for the quarter ended June 30, 2008. The scrip touched an intra-day high of Rs335 and a low of Rs277 and recorded volumes of over 2,00,000 shares on BSE.
United Phosphorus gained by 3% to Rs320 after the company announced that the board of directors of the company approved a bonus issue of equity shares in the ratio of 1 equity share of the company of Rs2/- each for every 1 equity share of the company held by the shareholders of the company. The Company also announced its Q1 results with net profit of Rs466.30mn as compared to Rs295.30mn for the quarter ended June 30, 2007. Total Income increased from Rs3589.10mn for the quarter ended June 30, 2007 to Rs5536.70mn for the quarter ended June 30, 2008. The scrip touched an intra-day high of Rs348 and a low of Rs313 and recorded volumes of over 4,00,000 shares on BSE.
Reliance Infrastructure plans four JVs with Shanghai Electric. (BS)
ONGC to enter nuclear mining. (BS)
Pantaloon Retail offers 1:10 bonus with differential rights. (BS)
Phoenix Mills to sell 30% in hotel unit for $250mn. (BS)
Scooters India plans to make electric bikes. (Mint)
Despite good sales, Hyundai Motor reported 11% decline in profit on forex losses. (Mint)
Tata’s Nano to be introduced in Q3 FY09 says Ratan Tata. (Mint)
Ajay Mahajan resigns from Yes Bank. (Mint)
M. Damodaran joins the board of Tech Mahindra. (BS)
Gail ties up with BPCL for natural gas. (BS)
Ashok Leyland is seeking shareholder approval to raise Rs9.5bn. (BS)
Gitanjali Gems buys metals company, B Vijay Retail Ventures. (BS)
Kingfisher Airlines has run up a debt of Rs40bn. (BS)
RBI approves merger of SBI and State Bank of Saurashtra. (BL)
Piramal Healthcare to make narcotic input for cough syrup. (BL)
Phillips Carbon Black plans to expand capacity of its Cochin plant to 90,000 tons from 40,000 tons currently. (BL)
Ramco Systems plans R1,730mn rights issue. (BL)
Tata Motors to partner Norway based company to produce electric car. (ET)
Cipla, Ranbaxy and US Vitamin (India) to face Rs15.63bn fine for over-charging customers on price controlled medicines. (ET)
Marico likely to raise prices of flagship brand, Parachute. (ET)
Educomp to acquire 76% stake in A-Plus Education for Rs107.5mn. (ET)
Reliance Infrastructure to tie-up with Chinese banks to fund its proposed US$3bn JV with Shanghai Electric. (ET)
Diageo in talks to acquire 30% stake in Cobra Beer. (ET)
Gujarat Alkalies forms JV with Dow Chemicals for setting up Rs6bn plant in Dahej. (FE)
Government approves Volvo’s proposal to invest US$275mn in their JV with Eicher Motors.(FE)
L&T and Reliance Infrastructure bids for Rs14.40bn mono-rail project. (FE)
SCI secures cabinet nod to buy four bulk carriers. (BL)
Economic Front Page
India relaxes offshore vessel hiring rules for oil explorers; April 2008 order reversed. (Mint)
Government waives licence fee on rural fixed line phones. (Mint)
RBI tells banks to stop excessive credit card charges. (BS)
Wholesale price index rose to 11.89% in the week ended July 12, compared to 4.76% in the same period last year. (ET)
TRAI favours industry-led body for regulating TRP ratings. (BL)
Government to consider ban on two fertilizer inputs, Sulphuric and Phosphoric acid. (ET)
SEBI seeks P-Note detailed information from FIIs. (ET)
Government approves execution of 444MW hydroelectric project in Uttarkhand. (ET)
Indian Railways invited global tenders to select JV partners for manufacturing locomotives and passenger coaches. (ET)
Panel comprising officials from MoF and RBI to review ECB policy shortly. (ET)
Annual Monsoon rains from July 17 to July 23 were 33% below the long term average, said weather office. (FE)
Parliamentary standing committee on finance to hold negotiations with RBI on management of foreign exchange reserves. (FE)
Commerce ministry recommends definitive dumping duty on imported inorganic chemical hydrogen peroxide. (BL)
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