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Thursday, July 31, 2008
BSE Bulk Deals to Watch - July 31 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
31/7/2008 532981 ANU LABS H K STOCK SERVICES PVT LTD B 99121 346.65
31/7/2008 532981 ANU LABS H K STOCK SERVICES PVT LTD S 99121 341.00
31/7/2008 590081 BRAHMANAND WILFUL FINANCE AND INVESTMENT S 153500 17.39
31/7/2008 532816 BROADCAST CONSOLIDATED SECURITIES LTD B 100000 34.00
31/7/2008 532816 BROADCAST MERRILL LYNCH CAPITAL MARKET ESPANA S A SVB S 310000 34.00
31/7/2008 526817 CHEVIO WINFIN FINANCIAL CONSULTANTS PVT. LTD. B 24210 254.75
31/7/2008 511742 CHOKHANI SEC VISHAL KANTILAL JAIN B 29800 16.51
31/7/2008 532764 GWALIOR CHEM H.J.SECURITIES P.LTD. B 403555 113.88
31/7/2008 532764 GWALIOR CHEM H.J.SECURITIES P.LTD. S 403555 114.05
31/7/2008 530885 JAISAL SECUR VENUGOPAL REDDY S B 25000 36.90
31/7/2008 530885 JAISAL SECUR CANOS TRADING PVT LTD. S 25000 36.90
31/7/2008 516078 JUMBO BAG LT VENKATESWARA CAPITAL MANAGEMEN B 100028 39.60
31/7/2008 532283 KASHYAP TEC AYODHYAPATI INVESTMENT PVT LTD B 2319324 1.45
31/7/2008 532283 KASHYAP TEC AYODHYAPATI INVESTMENT PVT LTD S 2319324 1.47
31/7/2008 513121 ORICON ENT VENUS MOULDED BOARDS PVT LTD B 49700 53.50
31/7/2008 513121 ORICON ENT KSM SECURITIES AND FINANCE PRIVATE LIMITED S 50000 53.50
31/7/2008 532886 SEL MANUF B K SHAH CO B 102680 640.35
31/7/2008 532886 SEL MANUF H.J.SECURITIES P.LTD. B 93881 658.94
31/7/2008 532886 SEL MANUF B K SHAH CO S 102678 642.20
31/7/2008 532886 SEL MANUF H.J.SECURITIES P.LTD. S 93881 658.83
31/7/2008 532311 TUTIS TECH SONAL MANISH SHAH B 150000 20.18
Inflation up .. home loans up!
Even as last week’s marginal decline of 0.02 % triggered hopes of a gradual ease, inflation for the week ending July 19 hovered yet again around 12%. The rise in inflation rate is being mainly attributed to an overall increase in the price of primary articles and food products. As a result, various banks have immediately announced an increase in their rates of lending.
The exact inflation figure for week ended July 19 is 11.98%. For the week before that it was 11.89%. The figure for May 24 has also been revised to 8.9%. It has been rising unabatedly after petrol prices were increased by the Government on June 5.
Inflation stood at 4.65 % in the corresponding week a year ago.
The break up of the inflation is as follows:
# Fuel, power, light index remains unchanged
# Primary articles are up by 0.1%
# Cereals were costlier by 0.1% while Pulses saw a slight climbdown
# Basic metals and alloys are costlier by 0.1%
# Fruits and vegetables were slightly less expensive
# Edible oil is down by 0/.3% and Cotton textile is up by 0.2%
This is the first official data on inflation after the Reserve Bank increased the short-term lending (repo) rate by 50 basis points to 9 per cent and also raised the mandatory deposits (CRR) that banks have to park with it by 25 basis points to cool down the rate of price rise.
However, the exact effect of these measures will be known after some time only as official data is released with a two week lag and hike in CRR would come into effect only after August 30.
Indices close flat
The market had a flat close as traders continued to book profits at the expiry of July derivative contracts.
After a cautious start at 14,359, above 72 points its previous close, the Sensex came under selling pressure and slipped into the red below the 14,200 mark amid weakness in several Asian indices to touch the day's low of 14,162, down 125 points. The market stabilised by afternoon and continued its northwards journey on healthy buying in heavyweights, metal and oil & gas stocks. The market remained choppy thereafter and moved in a range with a mixed bias. Strong optimism in frontline, metal, oil & gas and power stocks saw the index touch an intra-day high of 14,370, up 28 points from the day's low. However, profit bookings at the close saw the Sensex end the session with a marginal gain of 69 points at 14,356, while Nifty added 19 points to close at 4,333.
The market breadth was negative. Of the 2,697 stocks traded on the BSE, 1,326 stocks declined, 1,296 stocks advanced and 75 stocks ended unchanged. Among the sectoral indices, the BSE Metal index gained 1.68%, while the BSE Oil & Gas index, the BSE Power index and the BSE Realty index were up over 0.75% each. The BSE HC index, the BSE Teck index, the BSE IT index and the BSE Bankex were marginally down.
Among the heavyweights, Tata Power gained 4% at Rs1,160.10, Tata Steel soared 3.95% at Rs654.95, DLF surged 3.79% at Rs509.30, State Bank of India moved up by 2.03% at Rs1,414.75, Reliance Industries scaled up 1.99% at Rs2,206.20, Sterlite Industries was up 1.50% at Rs631.30, Mahindra & Mahindra advanced by 1.29% at Rs520.55 and Ranbaxy Laboratories gained 1.29% at Rs499.10. However, Tata Motors slipped 3.13% at Rs403.25, followed by Grasim Industries, which was down 2.78% at Rs1,800.45. Maruti Suzuki India slumped by 2.36% at Rs574.90, Wipro shed 1.53% at Rs416 and Bharti Airtel lost 1.33% at Rs799.15.
Over 3.72 crore Reliance Natural Resources shares changed hands on the BSE followed by Birla Cotsyn (1.79 crore shares), Ispat Industries (1.30 crore shares), BL Kashyap & Sons(0.88 crore shares) and Chambal Fertilisers (0.83 crore shares).
Reliance Natural Resources was the most actively traded counter with a turnover of Rs370 crore on the BSE followed by Reliance Capital (Rs344 crore), Reliance Industries (Rs182 crore), Tata Steel (Rs163 crore) and Reliance Infra (Rs135 crore).
NSE Bulk Deals to Watch - July 31 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
31-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,PRASHANT JAYANTILAL PATEL,BUY,2582610,10.53,-
31-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,TRANSGLOBAL SECURITIES LTD.,BUY,1390545,10.36,-
31-JUL-2008,BROADCAST,Broadcast Initiatives Lim,CONSOLIDATED SECURITIES LTD,BUY,100000,34.00,-
31-JUL-2008,BROADCAST,Broadcast Initiatives Lim,Esdotcom Support & Software Services Pvt Ltd,BUY,130010,34.00,-
31-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,BUY,130490,118.44,-
31-JUL-2008,GOLDTECH,Goldstone Tech Ltd.,SUMMIT COMMUNICATION PRIVATE LIMITED,BUY,100000,119.85,-
31-JUL-2008,GWALCHEM,Gwalior Chemical Industri,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,142056,110.04,-
31-JUL-2008,GWALCHEM,Gwalior Chemical Industri,TRANSGLOBAL SECURITIES LTD.,BUY,161318,114.38,-
31-JUL-2008,GWALCHEM,Gwalior Chemical Industri,YUVAK SHARE TRADING PVT LTD,BUY,123502,114.28,-
31-JUL-2008,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,6812923,26.02,-
31-JUL-2008,JAYSREETEA,Jayashree Tea Ltd.,JAYASHREE MOHTA,BUY,77245,150.02,-
31-JUL-2008,LICHSGFIN,LIC Housing Finance Ltd,MORGAN STANLEY & CO INT LTD A/C MORGAN STANLEY DEAN WITTER M,BUY,758200,323.60,-
31-JUL-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,BUY,2391875,39.26,-
31-JUL-2008,RENUKA,Shree Renuka Sugars Limit,MORGAN STANLEY & CO INT LTD A/C MORGAN STANLEY DEAN WITTER M,BUY,1400000,125.61,-
31-JUL-2008,SELMCL,SEL Manufacturing Company,B K SHAH CO KETAN BHAILAL SHAH,BUY,106887,640.99,-
31-JUL-2008,STERLINBIO,Sterling Biotech Ltd.,EMERALD FINSTOCK PRIVATE LIMITED,BUY,1500000,234.63,-
31-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,PRASHANT JAYANTILAL PATEL,SELL,2582610,10.49,-
31-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,TRANSGLOBAL SECURITIES LTD.,SELL,1382699,10.38,-
31-JUL-2008,BROADCAST,Broadcast Initiatives Lim,MERILL LYNCH CAPITAL MARKET ESPANA S.A SVB,SELL,290000,34.00,-
31-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,SELL,130490,118.74,-
31-JUL-2008,GWALCHEM,Gwalior Chemical Industri,TRANSGLOBAL SECURITIES LTD.,SELL,162315,114.47,-
31-JUL-2008,GWALCHEM,Gwalior Chemical Industri,YUVAK SHARE TRADING PVT LTD,SELL,119735,114.26,-
31-JUL-2008,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,6030621,26.02,-
31-JUL-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,SELL,2391875,39.28,-
31-JUL-2008,SELMCL,SEL Manufacturing Company,B K SHAH CO KETAN BHAILAL SHAH,SELL,106887,640.82,-
31-JUL-2008,STERLINBIO,Sterling Biotech Ltd.,DWS INVEST DWS INVEST BRIC PLUS,SELL,2150000,240.44,-
Post Session Commentary - July 31 2008
The domestic market finally managed to end the day with gains after it witnessed volatility for throughout of trading session and remained in a narrow range ahead of F&O expiry day and inflation number for the week ended 19th July 2008, which has to come out today evening. Market opened in upbeat note tracking favorable global cues from global markets but was not able to sustain the momentum and slipped to negative territory soon after start . Further, market turned choppy and skipped up and down. Alternative shifts of buying and selling were witnessed during the trading hours but strong buying support during the final hours of trading led the market to close in green. NSE Nifty maintained the level of 4,300 and BSE Sensex maintained 14,300 level. On the sectoral front, Metal, Oil & Gas, Capital Goods and Reality stocks gained favor from the market as witnessed buying from these baskets. However, Pharma, IT and Reality stocks observed selling pressure. The market breadth was negative as 1296 stocks closed in green while 1326 stocks closed in red and 75 stocks remained unchanged.
The BSE Sensex closed higher by 68.54 points at 14,355.75 and NSE Nifty ended up by 19.40 points at 4,332.95. The BSE Mid Caps closed with losses of 13.64 points at 5,567.37 and Small Cap ended down by 14.81 points 6,912.79. The BSE Sensex touched intraday high of 14,369.59 and intraday low of 14,161.76.
Gainers from the BSE are Tata Power (4.00%), Tata Steel (3.95%), DLF Ltd (3.79%), SBI (2.03%), Reliance (1.99%), Sterlite In (1.50%), M&M Ltd (1.37%), Ranbaxy Lab (1.29%), Hindalco (0.68%) and BHEL (0.61%).
Lossers from the BSE are Tata Motors (3.13%), Grasim Indus (2.78%), MAruti Suzuki (2.36%), Wipro Ltd (1.53%), Bharti Airtel (1.33%), Infosys Tech (1.20%), ACC Ltd (1.12%), TCS Ltd (0.72%), Relaince Infra (0.58%) and Reliance Com Ltd (0.47%).
The Metal index closed up by 213.91 points at 12,912.61. Gainers are NMDC Ltd (4.98%), Tata Steel (3.95%), Steel Authority (3.42%), Sterlite In (1.50%), Ispat Industries (1.36%), and Sesa Goa Ltd (1.25%).
The Oil & Gas index ended up by 121.74 points at 9,729.48. As Cairn India (2.55%), Reliance (1.99%), Essar Oil Ltd (0.83%), ONGC (0.59%), Gail India (0.44%) and Reliance Pet (0.30%) closed in positive territory.
The BSE Capital Goods index gained 55.43 points to close at 11,683.80. Major gainers are Elecon Eng C (4.73%), Seimens Ltd (4.19%), Aiaengineer (3.51%), Usha Martin (3.51%), Everest Kanto (2.31%) and Suzlon Energy (1.83%).
The BSE Reality index ended higher by 37.13 points at 5,079.01. As DLF Ltd (3.79%), Mahindra Life (3.24%), Penland Ltd (2.56%), Sobha Dev (2.49%), Omaxe Ltd (2.10%), Unitech Ltd (0.86%), and Pheonix Mill (0.73%) closed in positive territory.
The BSE Pharma index closed lower by 45.88 points at 4,162.03. Lossers are Sterl Biotec (13.36%), Matrix Labs (3.54%), Bilcare Ltd (3.25%), Dr Reddy’s Lab (2.78%), Wockhardt Ltd (2.48%), Glenmark Pharma (2.24%), and Sun Pharma (1.78%).
The BSE IT index lost 32.52 points to close at 3,689.57. Major losers are Patni Computer (3.23%), Financ Tech (3.09%), Moser Bayer (3.07%), Aptech Ltd (2.04%), Wipro Ltd (1.53%) and HCL Tech (1.47%).
Market extends gains
The key benchmark indices extended yesterday (30 July 2008)’s sharp gains ending marginally higher amidst volatility as futures & options contracts for July 2008 series expired today. However, the market breadth turned negative from earlier strong breadth. Crude oil surged by more than $4 a barrel yesterday, 30 July 2008. Tata Power Company and Tata Steel rose close to 4%.
Banking shares were mixed ahead of the inflation data for 12 months to 19 July 2008 to be released after trading hours today, 31 July 2008. Metal stocks gained. Healthcare and IT stocks fell.
The 30-share BSE Sensex rose 68.54 points or 0.48% at 14,355.75. At the day’s low of 14,161.76, the Sensex lost 125.45 points in afternoon trade. Sensex hit a high of 14,369.59 in late trade. At the day's high, the Sensex rose 82.38 points.
The broader based S&P CNX Nifty was up 19.40 points or 0.45% to 4,332.95. Nifty August 2008 futures were at 4337, at a premium of 4.05 points as compared to spot closing of 4332.95.
The BSE clocked the turnover of Rs 5,047 crore as compared to Rs 5,353.99 crore on 30 July 2008. NSE's futures & options (F&O) segment turnover was Rs 64,640.25 crore, which was higher than Rs 58,543.91 crore on Wednesday, 30 July 2008.
The barometer index BSE Sensex is down 5,931.24 points or 29.23% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,851.02 points or 32.3% away from its all-time high of 21,206.77 struck on 10 January 2008.
The market breadth turned negative from earlier strong breadth with 1,296 shares advancing as compared to 1,326 that declined on BSE. 75 remained unchanged.
Among the 30-member Sensex pack, 16 gained while the rest declined.
The BSE Mid-Cap index fell 0.24% to 5,567.37 and BSE Small-Cap index declined 0.21% to 6,912.79. Both these indices underperformed Sensex.
BSE Metal index (up 1.68% to 12,912.61), BSE Oil & Gas (up 1.27% to 9,729.48), BSE Power index (up 0.78% to 2,574.27), BSE Realty index (up 0.74% to 5,079.01), BSE Consumer Durables index (up 0.73% to 3,685.84), BSE Capital Goods index (up 0.48% to 11,683.80) outperformed Sensex.
BSE HealthCare (down 1.09% to 4,162.03), BSE Teck index (down 0.99% to 3,000.41), BSE IT index (down 0.87% to 3,689.57), BSE Bankex (down 0.1% to 6,516.41), BSE Auto index (up 0.18% to 3,679.51), BSE FMCG index (up 0.28% to 2,139.18), BSE PSU index (up 0.44% to 6,706.14), underperformed Sensex.
As per the provisional figures on BSE, foreign institutional investors (FII)'s bought shares worth Rs 494.87 crore and domestic funds bought shares worth Rs 320.57 crore today, 31 July 2008.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 1.99% to Rs 2,206.20.
IT stocks fell. Infosys (down 1.2% to Rs 1,583.30), Tata Consultancy Services (down 0.72% to Rs 832.55) and Wipro (down 1.53% to Rs 416) edged lower. India’s third largest IT exporter by sales Satyam Computer Services was flat at Rs 380.30.
Healthcare stocks fell. Cipla (down 0.61% to Rs 218.70), Dr Reddy’s Laboratories (down 2.78% to Rs 569.20), Wochardt (down 2.48% to Rs 186.85) edged lower. India’s largest drugmaker by sales Ranbaxy rose 1.29% to Rs 439.10.
Metal stocks rose. Hindalco Industries (up 0.68% to Rs 141.10), Steel Authority of India (up 3.42% to Rs 140.70), Sterlite Industries (up 1.5% to Rs 631.80) and Tata Steel (up 3.95% to Rs 654.95) edged higher.
Banking shares were mixed ahead of the weekly inflation data, to be released after market hours today, 31 July 2008. India’s largest private sector bank by net profit ICICI Bank declined 0.07% to Rs 634.85. India’s largest commercial bank State Bank of India rose 2.03% to Rs 1,414.75.
HDFC Bank, India's second largest private sector bank in terms of operating income, rose 0.25% to Rs 1,095.25.
Grasim Industries (down 2.78% to Rs 1,800.45), Bharti Airtel (down 2.46% to Rs 790), Maruti Suzuki India (down 2.36% to Rs 574.90), edged lower from Sensex pack.
Tata Power Company (up 4% to Rs 1,160.10), DLF (up 3.79% to Rs 509.30), Mahindra & Mahindra (up 1.37% to Rs 520.55), NTPC (up 0.79% to Rs 172.25), Ranbaxy Laboratories (up 1.29% to Rs 499.10), edged higher from Sensex pack.
Tata Motors, the country’s top truck manufacturer in terms of sales lost 3.13% to Rs 403.25 after the company reported 30.10% fall in net profit to Rs 326.11 crore on 14.40% rise in net sales to Rs 6928.44 crore in Q1 June 2008 over Q1 June 2007. The company announced the results during trading hours yeserday, 30 July 2008, when the stock had risen 4.91% to Rs 416.30.
India’s largest cigarette maker in terms of sales ITC was flat at Rs 187.80. After market hours yesterday, 30 July 2008, the company reported 4% drop in net profit at Rs 748.67 crore on 18% growth in net turnover to Rs 3,900 crore in Q1 June 2008 over Q1 June 2007. The drop in net profit was attributed to the increase in excise duties on non-filter cigarettes in the Union Budget 2008, steep rise in commodity prices and store rentals.
Reliance Natural Resources clocked the highest volume of 3.72 crore shares on BSE. Birla Cotsyn (1.79 crore shares), Iapat Industries (1.3 crore shares), Kashyap Technologies (88.35 lakh shares) and Chambal Fertilisers and Chemicals (83.17 lakh shares) were the other volume toppers in that order.
Reliance Natural Resources clocked the hoghest turnover of Rs 370.34 crore on BSE. Reliance Capital (Rs 344.41 crore), Reliance Industries (Rs 182.77 crore), Tata Steel (Rs 163.03 crore) and SEL Manufacturing (Rs 151.18 crore) were the other turnover toppers in that order.
On the New York Mercantile Exchange, September 2008 crude surged $4.58, or 3.75%, to $126.77 a barrel yesterday, 30 July 2008 after data showed a surprise drawdown in gasoline stocks last week.
US markets surged yesterday, 30 July 2008 after encouraging jobs data and the central bank's attempts at boosting liquidity in the financial markets offset a surge in oil prices. The Dow Jones jumped 186.13 points, or 1.63%, to 11,583.69. The Standard & Poor's 500 index rose 21.06 points, or 1.67%, to 1,284.26, and the Nasdaq Composite index advanced 10.10 points, or 0.44%, to 2,329.72.
European markets which opened after Indian market were positive. France’s CAC 40, Germany’s DAX and UK’s FTSE 100 were down by between 0.64% to 1.11%.
Asian markets were trading mixed today, 31 July 2008. Key benchmark indices in China and Taiwan were down by between 0.65% and 1.25%. However, indices in Hong Kong, Japan Singapore and South Korea were up by between 0.07% and 1.08%.
Back home, rally in global equities and fall in oil prices aided a rebound on the domestic bourses yesterday, 30 July 2008. The 30-share BSE Sensex jumped 495.67 points or 3.59% at 14,287.21 and the broader based S&P CNX Nifty jumped 123.70 points or 2.95% at 4,313.55, on that day.
Morning Call - July 31 2008
Market Grape Wine :
In House :
Nifty at a support at 4260 4190 with resistance at 4322 4378 levels.
Cash: Buy ABB above 794 target 845 with S/L 770
Cash: Buy CIPLA above 222 target 234 with S/L 217
Future: Sell Zee Below 208 target 195 with S/L 216
Future: Buy RPOWER above 160 targets 170 with S /L 156.
Out House:
Markets at a support of 14014 & 13898 levels with resistance at 14341 & 14441 levels .
F&O Expiry today : Markets o be very choppy and volatile maintain strict stop loss .
Buy : INFY & Satyam
Buy : Adalbs
Buy : SesaGoa
Buy : RelInfra & Relcap
Buy : LNT
Buy : IBulls & IBullInfra
Buy : SBIN
Buy : Aftekinfo
Buy : Core project
Dark Horse : Sesa Goa , IBulls , RIL , Wipro , Adalbs , SBIN , LNT , Core & INFY
Grey Market - Nu Tek India, Vishal Information Technolgoies
Vishal Information Technologies 140 to 150 4 to 6
NU TEK India Ltd. 170 to 192 14 to 16
Pre Session Commentary - July 31 2008
The Indian Market is expected to have positive opening as US markets closed with gains and Asian markets are trading mixed. On Wednesday, the Indian market closed heavy gains due to strong buying over the counters led by favorable global cues global cues and steep drop in crude oil price. The domestic market opened sharply higher tracking strong cues from the global markets. Further, market traded sharply higher without any sign of weakness and continued to gain ground through out of the trading session. NSE Nifty gained around 3% and ended above 4,300 mark and BSE Sensex closed with gains of more than 3% and ended above 14,200 level. All indices except FMCG closed in green. Out of which, Bank and Reality indices rallied to close with a gain of more than 5%. Along with this, the Metal, Capital Goods, Oil & Gas, IT and Power stocks also witnessed sustained buying from these baskets. The BSE Sensex closed higher by 495.67 points at 14,287.21 and NSE Nifty ended up by 127.35 points at 4,317.20. We expect that market may remain volatile during the trading session ahead of F&O expiry day and inflation number for the week ended 19th July 2008, which has to come out today evening.
On Wednesday, the US market was closed with gains influenced by the latest ADP employment report that showed an unexpected 9,000 increase in July private non-farm jobs. A news about Fed’s extension of the length of its Term Securities Lending Facility program also added positive sentiment. These entire positive cues off sets the surge in crude. Crude advanced $4.58 to settle at $126.77 a barrel on the NYMEX.
The Dow Jones Industrial Average (DJIA) closed higher by 186.13 points at 11,583.69 along with S&P 500 index ended up by 21.06 points at 1,284.26 and NASDAQ closed higher by 10.10 points at 2,329.72.
Indian ADRs ended mixed. In technology sector, Patni Computers ended lower by (4.93%) along with Infosys by (0.69%) and Satyam by (0.40%) while Patni Computers remained unchanged. In banking sector, HDFC bank and ICICI bank dropped (2.03%) and (1.45%) respectively. In telecommunication sector, Tata Communication ended up by (3.49%) along with MTNL by (3.02%). Sterlite industries increased by (7.83%).
Today the major stock markets in Asia are trading mixed. Hang Seng index is trading higher by 68.19 points at 22,758.79 along with Taiwan Weighted trading up by 18.93 points at 7,089.28 while Japan’s Nikkei dropped 78.93 points at 13,288.86.
The FIIs on Wednesday stood as net seller in equity and net buyer in debt. The gross equity purchased was Rs2,312.70 Crore and the gross debt purchased was Rs159.30 Crore while the gross equity sold stood at Rs2,3645.00 Crore and gross debt sold stood at Rs33.40 Crore. Therefore, the net investment of equity reported was (Rs332.30) Crore and net debt was Rs125.90 Crore.
Today, Nifty has support at 4,227 and resistance at 4,408 and BSE Sensex has support at 13,989 and resistance at 14,627.
Market may remain nervous
Market may resume on firm note after the Sensex reported profit of around 500 points in the last session. Major hike in crude oil price, mixed asian indices and major funds resorting to selling of equities in the last session could make the investors jittery from taking any fresh position. Among the key local indices, the Nifty could decline to 4270 - 4200 on the downside while on the upside there is a near term resistance at 4350. The Sensex has a likely support at 14150 and may face resistance at 14450.
US indices ended positve on Wednesday on the back of strong financial reports, rising consumer confidence and falling oil prices. While the Dow Jones gained by 186 points to close at 11,584, the Nasdaq was up marginally by 10 points at 2330.
Major Indian ADRs, too, buckled under selling pressure on the US bourses. Patni Computer led the slump and tumbled 4.93% while Tata Motors declined 4.73%. Dr Reddy, HDFC Bank, ICICI Bank, Infosys, Satyam and Rediff lost over 0.17-2% each. However, MTNL and VSNL gained above 3%.
Crude oil prices advanced sharply after a surprise decline in the nation's gasoline stockpile, and a forecast from Goldman Sachs that said crude could hit $149 a barrel by year's end. The Nymex light crude oil for September series raising by $4.58 to close at $126.77 a barrel. In the commodity space, the Comex gold slumped $14.10 to settle at $912.30 a troy ounce.
Results Today : Abirlanuvo, Adlabsfilm, Aiaeng,Amtekauto,Aptecht, Bajajhind, Balramchin, Beml, Bharatforg, Bindalagro, Brigade, Centralbk, Dlf, Essaroil, Finantech, Ispatind, Jswsteel, Mtnl, Nagarconst, Nationalum, Parsvnath, Rcom, Renuka, Tatasteel, Titan, Yesbank
Bullion metals end mixed
Gold prices end considerably lower even though prices pare losses in last hours
Bullion metal prices once again dropped to its low levels in almost a month’s time today, Wednesday, 30 July, 2008. Prices fell as the dollar strengthened. Going into close, it pared some of its losses but still ended considerably lower. But silver prices rose for the day.
Comex Gold for August delivery fell $13.6 (1.5%) to close at $902.9 ounce on the New York Mercantile Exchange. It fell to a low of $895.4 during intra day trading. Last week, it ended lower by $30 (3.2%). 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 8.1% till date against a 8% 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%.
On Monday, Comex silver futures for September delivery rose 9 cents (0.46%) to $17.465 an ounce. Silver has gained 18.7% 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.
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 Wednesday, the dollar rose earlier in the day in foreign-exchange trading after data based on a sampling of ADP payrolls indicated that July's private-sector employment rose by 9,000. Including some 20,000 government workers typically hired in a given month, the ADP index suggests U.S. nonfarm payrolls rose by about 30,000. But the dollar index which tracks the performance of the greenback against a basket of other currencies, pulled back a bit as oil prices gained more ground. The index was settled at 73.29, compared with 73.285 in the previous day.
At the crude market on Wednesday, crude-oil futures closed with a more than $4 per barrel gain finding support from the first drop in U.S. gasoline supplies in five weeks and a second-weekly decline in crude inventories. Production concerns tied to conflicts in Nigeria and rising tension in Iran also lent support. Crude for September delivery gained $4.58 to close at $126.77 a barrel on the New York Mercantile Exchange.
The weakening dollar and higher global demand for raw materials have led to records this year for commodities including gold. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. Gold and oil has climbed 34% and 60% 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% in June, 2008.
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 142 (1.12%) at Rs 12,477 per 10 grams. Prices rose to a high of Rs 12,630 per 10 grams and fell to a low of Rs 12,284 per 10 grams during the day’s trading.
At the MCX, silver prices for September delivery closed Rs 174 (0.71%) higher at Rs 24,482/Kg. Prices opened at Rs 24,305/kg and rose to a high of Rs 24,560/Kg during the day’s trading.
Crude registers strong gains
Prices rise by almost $5 on inventory data
Crude prices registered sharp rise in prices today, Wednesday, 30 July, 2008. Prices rose after Energy Department’s weekly inventory report showed that last week registered first drop in gasoline inventories in almost five weeks and also showed a second weekly decline in the crude inventories.
Crude-oil futures for light sweet crude for September delivery closed at $126.77/barrel (higher by 4.54/barrel or 3.6%) on the New York Mercantile Exchange. Crude prices had registered drop in the past two days and yesterday it fell by almost $3. Last week, prices coughed up $6.5 (4.8%). It's now 14% lower than the $147.27 record high hit last on Thursday, 10 July, 2008.
EIA reported today that crude supplies fell by 100,000 barrels to 295.2 million barrels for the week ended 25 July. U.S. refinery activity was at 87.2% of capacity last week. That's up slightly from 87.1% the previous week.
EIA also reported that as for the oil products, motor gasoline supplies dropped by 3.5 million barrels to 213.6 million last week following a total climb of more than 8 million barrels between the weeks ended 27 June and 18 July. Distillate inventories, which include heating oil, were up 2.4 million at 130.5 million.
The increase in gasoline supplies came even as demand for motor gasoline stood at an average of about 9.4 million barrels per day over the past four weeks, down 2.4% from the same time a year ago.
At the currency markets on Wednesday, the dollar rose earlier in the day in foreign-exchange trading after data based on a sampling of ADP payrolls indicated that July's private-sector employment rose by 9,000. Including some 20,000 government workers typically hired in a given month, the ADP index suggests U.S. nonfarm payrolls rose by about 30,000. But the dollar index which tracks the performance of the greenback against a basket of other currencies, pulled back a bit as oil prices gained more ground. The index was settled at 73.29, compared with 73.285 in the previous day.
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 62% higher than a year ago. For the year, crude is up by 32% till date.
Against this background, September reformulated gasoline rose by 12.7 cents to close at $3.1399 a gallon while September heating oil added 4.7 cents to end at $3.5458 a gallon.
Natural-gas futures finished higher ahead of tomorrow’s update on natural-gas supplies from the EIA. September natural-gas futures rose 11.8 cents to close at $9.248 per million British thermal units.
At the MCX, crude oil for August delivery closed at Rs 5,347/barrel, higher by Rs 168 (3.2%) against previous day’s close. Natural gas for August delivery closed at Rs 392.5/mmbtu, higher by Rs 1.1/mmbtu (0.3%).
Energy Department will natural gas inventory data tomorrow covering the week ended 25 July.
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