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Thursday, August 07, 2008
FIIs buy heavily
Inflow of Rs 1628.60 crore on 6 August 2008
Foreign institutional investors (FIIs) bought shares worth net Rs 1628.60 crore on Wednesday, 6 August 2008, compared to their buying of Rs 64.10 crore on Tuesday, 5 August 2008.
FII inflow of Rs 1628.60 crore on 6 August 2008 was a result of gross purchases Rs 4921.90 crore and gross sales Rs 3293.30 crore. The 30-share BSE Sensex rose 112.47 points or 0.75% to 15,073.54 on that day.
FII inflow in August 2008 totaled Rs 1546.90 (till 6 August 2008). FII outflow in calendar year 2008 totaled Rs 25,755.20 crore (till 6 August 2008).
There are a total of 1,458 FIIs registered with the Securities & Exchange Board of India (Sebi).
BSNL IPO - again ?
India is hoping to list state-run telecoms firm Bharat Sanchar Nigam Ltd (BSNL) at Rs 300-400 (USD 7.2-9.5) a share, but will take a final decision only after discussions with trade unions who oppose the move, Telecoms Minister Andimuthu Raja said on Thursday.
BSNL is India's top ranked telecoms firm by subscriber numbers but in mobile services lags Bharti Airtel Ltd, Reliance Communications Ltd and Vodafone-controlled Vodafone Essar.
As of end-June, BSNL had nearly 73 million wireless and fixed-line subscribers, slightly ahead of mobile services leader Bharti Airtel which had nearly 72 million users.
Inflation shock hits again
In sharp contrast to the claims of the Government that inflation is expected to fall below double digits soon, the rise in the price index to 12.01% came as a big shock to the country that was hoping some respite after the global crude prices have shown ease in their spurt.
The inflation rose by 0.3% from 11.9% for the week ended July 26. But despite the price index crossing the historic 12% mark the Finance Ministry has claimed that there is nothing to panic as inflation has remained stable on a weekly basis and the fuel index has also remained undisturbed.
The reason for this spurt has been attributed to the sudden rise in the cost of edibles like pulses, spices, egg, fish and meat.
"Infln seen below double-digits by FY-end"
India's headline inflation rate, which is ruling at a 13-year high just below 12 percent, is expected to fall to below double-digits by the end of the fiscal year, a top government official said on Thursday.
Montek Singh Ahluwalia, deputy chairman of the Planning Commission, which charts out five-year growth strategies, also said the softening of global crude oil prices was a "welcome development".
The government will release inflation data for the 12 months to July 26 at around 6:00 pm local time.
Turnover drops
RIL August 2008 futures at premium
Nifty August 2008 futures were at 4530.75, at a premium of 6.90 points as compared to spot closing of 4523.85. NSE's futures & options (F&O) segment turnover was Rs 49,917.63 crore, which was lower than Rs 61,180.08 crore on Wednesday, 6 August 2008.
Reliance Industries (RIL) August 2008 futures were at premium at 2281.10 compared to the spot closing of 2272.60.
State Bank of India August 2008 futures were at discount at 1519.90 compared to the spot closing of 1523.20.
DLF August 2008 futures were at discount at 543 compared to the spot closing of 557.
In the cash market, the S&P CNX Nifty gained 6.30 points or 0.14% at 4523.85.
Inflation goes past 12%
Inflation crossed 12% for the first time in 13 years at 12.1% for the week ended July 26, on the back of costlier food items.
Increase in the prices of some food articles and manufactured products pushed inflation to a 13-year high of 11.98 per cent for the week ended July 19. The increase prompted economists to predict another 25 basis points increase in the central bank’s short-term lending rates.
The high inflation and the attendant hawkish monetary policy of the central bank, feel economists, are expected to hit the economy’s expansion in the next fiscal. “We expect more upside in inflation before it comes down. We may have to live with double-digit inflation for at least a couple of months. The central bank may raise its short-term lending rate to banks by a quarter of a percent by September-October,” Crisil director & principal economist D K Joshi said.
Last week on Tuesday the RBI raised its key lending rate for the third time in two months, taking it to its highest in seven years to quell price pressures, dampen demand and keep inflation expectations in check. The apex bank hiked the benchmark short-term rate by 50 basis points, about 25 bps more than what the market had expected, and the cash reserve ratio, the amount of funds banks must keep on deposit with it, by 25 basis points to 9 per cent to absorb surplus cash in the banking system.
"Bringing down inflation from the current high levels and stabilising inflation expectations assume the highest priority in the stance of monetary policy,” the RBI said in its quarterly review.
Inflation, which stood at almost 12 per cent in mid-July, has more than doubled since late February. It accelerated into double digits after a sharp increase in government-set retail fuel prices in June, prompting the RBI to resume interest rate increases after a pause of more than a year.
“Such heavy dose of rate hikes has the potential to slow down the economy’s expansion next fiscal to about 7%,” said Joshi.
BSE Bulk Deals to Watch - Aug 7 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
7/8/2008 531223 ANJANI SYNTH AYODHYAPATI INVESTMENT PVT LTD B 242610 37.44
7/8/2008 531223 ANJANI SYNTH NARENDRA VALLABHJI BAHUVA B 75681 41.38
7/8/2008 531223 ANJANI SYNTH NILESH R PANDYA S 78700 38.34
7/8/2008 531223 ANJANI SYNTH AYODHYAPATI INVESTMENT PVT LTD S 115259 41.17
7/8/2008 531223 ANJANI SYNTH NARENDRA VALLABHJI BAHUVA S 75681 39.56
7/8/2008 500013 ANSAL INFRAS MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S.V. B 1051722 92.54
7/8/2008 502355 BALKRISH IND MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S.V. B 400000 400.00
7/8/2008 531682 CAT TECHNOL S V ENTERPRISES B 319283 6.85
7/8/2008 531682 CAT TECHNOL S V ENTERPRISES S 313657 6.75
7/8/2008 532610 DWAR SUGAR R.D.INVESTMENT B 100000 91.20
7/8/2008 532610 DWAR SUGAR YUVAK SHARE TRADING PVT.LTD. B 98861 91.02
7/8/2008 532610 DWAR SUGAR YUVAK SHARE TRADING PVT.LTD. S 106858 90.67
7/8/2008 530389 GEEFCEE FINA GOPAL BANSAL SONS HUF S 52064 186.24
7/8/2008 531137 GEMSTONE INV DEEPA J SHAH B 20000 35.45
7/8/2008 531137 GEMSTONE INV ANKIT RAJENDRA SANCHANIYA S 22000 33.00
7/8/2008 532926 JYOTHY LAB FIDELITY INDIAN MUTUAL FUND AC FIDELITY EQUITY FUND B 117800 455.00
7/8/2008 532926 JYOTHY LAB IDFC ASSET MANAGEMENT COMPANY PVT LTD S 197549 455.00
7/8/2008 532283 KASHYAP TEC AYODHYAPATI INVESTMENT PVT LTD B 2191060 1.42
7/8/2008 532283 KASHYAP TEC AYODHYAPATI INVESTMENT PVT LTD S 2204099 1.46
7/8/2008 505283 KIRLOSAR PN RELIANCE CAPITAL ASSET MANAGEMENT LTD PMS S 161209 410.00
7/8/2008 532985 KOTAK SENSEX EMKAY GLOBAL FINANCIAL SERVICES LTD S 33112 151.33
7/8/2008 506618 PUNJAB CHEM RUPAK KUMUDBHAI SHAH B 25303 289.97
7/8/2008 532886 SEL MANUF HARDIK M MITHANI B 126193 553.85
7/8/2008 532886 SEL MANUF OPG SECURITIES PVT LTD B 291249 610.48
7/8/2008 532886 SEL MANUF S P J STOCK BROKER B 261602 575.15
7/8/2008 532886 SEL MANUF B K SHAH CO B 273460 581.74
7/8/2008 532886 SEL MANUF H.J.SECURITIES PVT.LTD. B 90437 608.39
7/8/2008 532886 SEL MANUF HARDIK M MITHANI S 126193 558.78
7/8/2008 532886 SEL MANUF OPG SECURITIES PVT LTD S 291249 611.13
7/8/2008 532886 SEL MANUF S P J STOCK BROKER S 261602 573.50
7/8/2008 532886 SEL MANUF B K SHAH CO S 273608 582.24
7/8/2008 532886 SEL MANUF H.J.SECURITIES PVT.LTD. S 90437 608.61
7/8/2008 532793 SHREE ASHTA SARANG RAKESH WADHAWAN B 100000 565.61
7/8/2008 532669 SOUTHBIOTEC BLB LIMITED S 213500 27.53
7/8/2008 513530 STELCO STRIP INDEX SECURITIES AND RESEARCH PV B 93575 19.50
7/8/2008 531950 VERTEX SECUR AMI STOCK SHARE BROKERS PLTD S 50000 31.45
7/8/2008 531249 WELL PACK PA RAMESHBHAI V PARMAR B 84000 17.61
7/8/2008 531249 WELL PACK PA WELLFIN SECURITIES LIMTED S 100000 17.61
NSE Bulk Deals to Watch - Aug 7 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
07-AUG-2008,ADLABSFILM,Adlabs Films Limited,A TO Z STOCK TRADE PRIVATE LIMITED,BUY,252145,543.67,-
07-AUG-2008,CHAMBLFERT,Chambal Fertilizers Ltd.,PACE FINANCIAL SERVICES,BUY,2245398,79.14,-
07-AUG-2008,DWARKESH,Dwarikesh Sugar Industrie,TALMA CHEMICALS INDS. PVT. LTD.,BUY,150000,91.34,-
07-AUG-2008,DWARKESH,Dwarikesh Sugar Industrie,YUVAK SHARE TRADING PVT LTD,BUY,135523,91.30,-
07-AUG-2008,FIRSTWIN,First Winner Industries L,J P CORPORATION JAYPRAKASH LAXMANPRASAD BHATT,BUY,100000,140.90,-
07-AUG-2008,GOKUL,Gokul Refoils and Solvent,CRESTA FUND LTD,BUY,629000,217.84,-
07-AUG-2008,SELMCL,SEL Manufacturing Company,B K SHAH CO KETAN BHAILAL SHAH,BUY,287201,582.29,-
07-AUG-2008,SELMCL,SEL Manufacturing Company,DKG SECURITIES PVT LTD.,BUY,247768,589.14,-
07-AUG-2008,SELMCL,SEL Manufacturing Company,DKG SECURITIES PVT. LTD.,BUY,114436,581.30,-
07-AUG-2008,SELMCL,SEL Manufacturing Company,STANDARD SECURITIES & INVESTMENT INTERMEDIATES LIMITED,BUY,79326,572.14,-
07-AUG-2008,SHREEASHTA,Shree Ashtavinayak Cine V,SARANG RAKESH WADHAWAN,BUY,100000,567.01,-
07-AUG-2008,ADLABSFILM,Adlabs Films Limited,A TO Z STOCK TRADE PRIVATE LIMITED,SELL,252145,543.99,-
07-AUG-2008,CHAMBLFERT,Chambal Fertilizers Ltd.,PACE FINANCIAL SERVICES,SELL,2245398,79.28,-
07-AUG-2008,DWARKESH,Dwarikesh Sugar Industrie,YUVAK SHARE TRADING PVT LTD,SELL,137436,91.24,-
07-AUG-2008,FIRSTWIN,First Winner Industries L,J P CORPORATION JAYPRAKASH LAXMANPRASAD BHATT,SELL,1866,141.36,-
07-AUG-2008,GOKUL,Gokul Refoils and Solvent,PACIFIC CORPORATE SERVICES LTD ,SELL,607500,217.85,-
07-AUG-2008,KIRIDYES,Kiri Dyes and Chemicals L,IMTIYAZ IBRAHIM DESAI,SELL,150000,150.00,-
07-AUG-2008,SELMCL,SEL Manufacturing Company,B K SHAH CO KETAN BHAILAL SHAH,SELL,287440,580.06,-
07-AUG-2008,SELMCL,SEL Manufacturing Company,DKG SECURITIES PVT LTD.,SELL,247768,595.89,-
07-AUG-2008,SELMCL,SEL Manufacturing Company,DKG SECURITIES PVT. LTD.,SELL,114386,568.30,-
07-AUG-2008,SELMCL,SEL Manufacturing Company,STANDARD SECURITIES & INVESTMENT INTERMEDIATES LIMITED,SELL,79326,571.67,-
Post Session Commentary - Aug 7 2008
The domestic market managed to close with marginal gains after remained unstable during the trading session. Market opened slightly lower due to weak cues from Asian markets. Further gained some ground as buying action was witnessed across board. However, same momentum did not sustain for long as the volatility griped the market ahead of inflation number for the week ended 26th July 2008, which is due to come out today evening. NSE Nifty ended above 4,500 mark and BSE Sensex above 15,100 level. From the sectoral front, Consumer Durables, Auto, Bank, Reality and IT stocks tried to offset the negative sentiment as were able to gather the buying momentum. However, Capital Goods, Oil & Gas and Power stocks remained out of favor as most of the selling was seen from these baskets. The market breadth was just above positive as 1406 stocks closed in green while 1284 stocks closed in red and 95 stocks remained unchanged.
The BSE Sensex closed higher by 43.71 points at 15,117.25 and NSE Nifty ended marginally up by 6.30 points at 4,523.85. The BSE Mid Caps closed with gains of 26.18 points at 5,881.60 and Small Cap ended up by 22.86 points 7,166.99. The BSE Sensex touched intraday high of 15,280.06 and intraday low of 14,992.97.
Gainers from the BSE are Sterlite Inds (4.43%), Tata Motors (4.10%), HDFC (3.37%), Grasim Ind (2.49%), M&M Ltd (2.48%), Maruti Suzuki (2.41%), Satyam Computer (2.25%), DLF Ltd (1.88%) and NTPC Ltd (1.78%).
Lossers from the BSE are BHEL (2.88%), Bharti Airtel (2.25%), Reliance Com Ltd (1.78%), Ranbaxy Lab (1.68%), HUL (1.47%), Wipro Ltd (1.09%), Tata Power (1.06%) and Reliance (1.06%).
The BSE Consumer Durables index closed higher by 110.66 points at 3,977.97. Gainers are Gitanjali Ge (6.48%), Titan Ind (3.89%), Videocon Ind (2.67%), Rajesh Export (1.72%) and Blue Star L (0.71%).
The BSE Bank index advanced by 47.77 points to close at 7,283.15. Gainers HDFC Bank Ltd (3.03%), PNB (1.09%), Bank of Baroda (0.91%), Axis Bank (0.61%) and Federal Bank (0.16%) closed in positive territory.
The BSE Auto index ended up by 47.39 points at 3,967.03. As Tata Motors ended higher (4.10%), M&M Ltd (2.48%), Maruti Suzuki (2.41%), Ashok Leyland (1.69%), Apollo Tyre (1.39%) and Bosch Ltd (0.71%) closed in positive territory.
The BSE Reality index ended higher by 38.21 points at 5,580.88. Major gainers are Ansal Infra (14.87%), Omaxe Ltd (3.51%), Parsvnath (3.13%), DLF Ltd (1.88%), Unitech (1.27%) and Orbit Co (1.15%).
The BSE IT index gained 31.20 points to close at 3,954.87. Major gainers are Moser Bayer (4.02%), Mphasis Ltd (3.14%), Aptech Ltd (2.53%), Satyam Computer (2.25%) and Patni Computer (2.05%).
The BSE Capital Goods index closed lower by 87.98 points at 12,394.90. Lossers are Crompton Greaves (3.33%), BHEL (2.88%), Jyoti Struct (2.86%), Bharat Bijli (2.40%), Gammon India (1.96%) and Areva (1.58%).
The Oil & Gas index closed down by 34.62 points at 10,153.07. Lossers are Reliance Pet (2.07%), BPCL (1.41%), Reliance (1.06%) and HPCL (0.71%).
Sensex ends flat
In a spiritless trading session, the market displayed a range-bound trend with select bouts of buying and selling activities. After opening 42 points lower over its previous close of 15,032, the Sensex scaled lower to touch an intra-day low of 14,993. In mid session, the market remained steady, however the sentiment turned bullish at the end of the session and the index rose to the day's high of 15,280. However, the Sensex on the back of selective pivotals in the stocks ended on a flat note at 15,074, up 44 points. The Nifty however advanced by six points to close at 4,524. The market breadth was positive. Of the 2,785 stocks, 1,415 stocks rose, 1,277 stocks fell and the remaining stocks ended unchanged. Sectoral indices showed a mixed result. The BSE CD, BSE Auto index, BSE IT index, BSE Realty index, BSE Bankex index, BSE FMCG index, BSE HC index and BSE Metal index ended with gains, whereas BSE CG index, BSE Power index, BSE PSU index, BSE Oil & Gas index and BSE Teck index ended with losses. Among gainers, Sterlite Industries flared up 4.43% at Rs614, Tata Motors moved up 4.10% at Rs444.20, HDFC jumped 3.37% at Rs2,476.60, HDFC Bank gained 3.03% at Rs1,253.70, Grasim Industries scaled up by 2.49% at Rs2,089.35, Mahindra & Mahindra was up 2.48% at Rs575.95, Maruti Suzuki India gained 2.41% at Rs668.55 and Satyam Computer Services advanced up 2.25% at Rs416.55. DLF, NTPC, Infosys, Relilance Infra, JPAssociates and ITC reported steady gains. However, BHEL dropped 2.88% at Rs1,774.65, Bharti Airtel shed 2.25% at Rs850.15 and Ranbaxy Laboratories dipped 1.78% at Rs438.55. Hindustan Unilever, Wipro, and Tata Power were marginally down. Over 2.91 crore Reliance Natural Resources shares changed hands followed by Ispat Industries (1.40 crore shares), Tata Teleservices Maharashtra Ltd (1.18 crore shares) and Kaashyap Technologies (0.88 crore shares)
Sensex settles above 15,100 in volatile trade
Key benchmark indices ended with marginal gains after swinging wildly. The market breadth was just about positive. Turnover on BSE remained dull. European markets recovered after weak start. Asian markets were trading mixed.
The Bank of England left interest rate unchanged at 5% at its meeting today, 7 August 2008. The European Central Bank which also meets today is expected to hold interest rates at 4.25%.
The Indian government will release the weekly inflation data today, 7 August 2008, evening. Inflation measured by wholesale price index is forecast to have risen 12.02% in the 12 months to 26 July 2008, up from previous week’s rise of 11.98%.
Foreign institutional investors were net equity sellers worth Rs 223.19 crore while mutual funds purchased shares worth Rs 24.10 crore today, 7 August 2008, according to provisional data on NSE.
The BSE 30-share Sensex rose 43.71 points or 0.29% at 15,117.25. At the day’s high of 15,280.06 struck in mid-afternoon trade, the Sensex gained 206.52 points. Sensex opened 41.68 points lower at 15,031.86 and slipped further to hit an intra-day low of 14,992.97 in early trade. At the day’s low, the Sensex lost 80.57 points.
The S&P CNX Nifty was up 6.30 points or 0.14% at 4523.85. Nifty August 2008 futures were at 4530.75, a premium of 6.9 points over spot closing.
The BSE Sensex is down 5,169.74 points or 25.48% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,089.52 points or 28.71% away from its all-time high of 21,206.77 struck on 10 January 2008.
The market breadth was just about positive on BSE with 1381 shares advancing as compared to 1262 that declined. 84 remained unchanged.
The BSE Mid-Cap index was up 0.45% to 5,881.60 and the BSE Small-Cap index gained 0.32% to 7,166.99. Both these indices outperformed the Sensex.
Turnover was dull today. The total turnover on BSE amounted to Rs 5,641 crore as compared to Rs 7,203 crore yesterday, 6 August 2008.
Sectoral indices on BSE displayed mixed trend. The BSE auto index (up 1.21% at 3967.03), BSE IT index (up 0.80% at 3954.87), BSE Realty index (up 0.69% at 5580.88), Bankex (up 0.66% at 7283.15), BSE FMCG index (up 0.53% at 2191.05), BSE Oil & Gas index (down 0.34% at 10153.07), BSE Consumer Durables (up 2.86% to 3,977.97), outperformed the Sensex.
The BSE Metal index (up 0.21% at 12885.97), BSE Healthcare (up 0.28% at 4269.87), BSE Capital goods (down 0.70% at 12394.90), BSE Power index (down 0.47% at 2686.46), BSE TecK (down 0.10% to 3,123.98), BSE PSU (down 0.36% to 7,025.66), underperformed the Sensex.
Among the 30-member Sensex pack, 20 advanced while the rest slipped.
Auto shares advanced for the third straight day and dominated Sensex gainers. India’s top truck maker in terms of sales, Tata Motors surged 4.28% to Rs 445 on 2.84 lakh shares. It was the top gainer from the Sensex pack.
Maruti Suzuki India (up 2.33% to Rs 668), and Mahindra & Mahindra (up 2.14% to Rs 574.05), also logged gains from auto pack.
Frontline banking shares were firm ahead of inflation data. HDFC Bank (up 3.25% to Rs 1256.25), State Bank of India (up 0.10% to Rs 1525), and ICICI Bank (up 0.74% to Rs 712), gained.
Cement shares rose despite recent reports that they could find it difficult to raise prices when the moratorium on price freeze ends on 14 August 2008. Ambuja Cements (up 1.93% to Rs 90), Grasim (up 1.52% to Rs 2069.60), and ACC (up 0.09% to Rs 638.20), edged higher from the cement pack. In May 2008, cement firms had agreed to hold prices for three months to help the government contain skyrocketing inflation.
India’s largest dedicated housing finance company in terms of revenue Housing Development Finance Corporation vaulted 3.36% to Rs 2476.40 on reports the company is in talks with GE Money to buy the latter's Indian home loan business.
Real estate stocks advanced on fresh buying. DLF (up 2.28% to Rs 557), Parsvnath Developers (up 3.78% to Rs 129.20), Omaxe (up 3.51% to Rs 138.60), and Unitech (up 1.27% to Rs 179.40), logged gains from the realty space.
IT pivotals were mixed. Wipro (down 1.63% to Rs 446.20), and TCS (down 1.56% to Rs 845.05), slipped.
India’s fourth largest software services exporter Satyam Computer Services advanced 2.23% to Rs 416.50. As per recent reports, the company is pursuing 15-20 deals of over $50 million each and is eyeing buyouts in the Asia Pacific, US, and European continents.
India’s second largest software services exporter Infosys gained 1.29% to Rs 1720.20
Oil and Natural Gas Corporation (ONGC), the country’s largest oil exploration company by market capitalisation gained 0.40% to Rs 1020. The company reportedly plans to scale up its gas production in Tripura and has revised the project cost to Rs 4376 crore from Rs 1817 crore.
NTPC (up 1.66% to Rs 183.25), and Jaiprakash Associates (up 1.55% to Rs 188), edged higher from the Sensex pack.
India’s largest power equipment maker by sales, Bharat Heavy Electricals lost 3.53% to Rs 1763 on reports the government blamed the company for delaying the projects causing acute shortage of electricity in various parts of the country.
India’s largest pharma company in terms of sales Ranbaxy Laboratories fell 1.28% to Rs 506. The government gave its approval to Daiichi Sankyo’s proposed acquisition of shares in the company. It was the top loser from Sensex pack.
Frontline telecom shares slipped. Bharti Airtel, the nation’s top mobile operator by revenue lost 1.46% to Rs 857. The company yesterday, 6 August 2008, said it would launch Apple Inc's third-generation iPhone in India on 22 August 2008.
India’s number two cellular services provider in terms of market capitalisation Reliance Communications (RCom) was down 1.71% to Rs 438.65. According to recent reports, the company is all set to float a $500-million tender for GSM 3G networks. At present, RCom is predominantly a CDMA-based operator which is now looking at 3G services only in the GSM space.
India's largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) was down 1.45% at Rs 2262.50 on 10.30 lakh shares. The stock moved in a range of Rs 2315.25 and Rs 2248.60 so in the day. However, Reliance Natural Resources (RNRL) was up 0.70% to Rs 100.95.
As per reports, the Bombay High Court (HC) has once again postponed hearing on the RIL-RNRL case till 12 August 2008. The court will decide in its next hearing whether the government can intervene in this case at this stage. The government had filed a petition in the HC to become a party to the case, supporting RIL.
India’s largest private sector steelmaker by sales, Tata Steel fell 0.54% to Rs 642.15 on reports top steel producers have decided not to raise steel prices even as the three month moratorium with the government on price freeze ends today, 7 August 2008.
Hindustan Unilever (down 1.45% to Rs 242.15), and Larsen & Toubro (down 0.34% to Rs 2754), edged lower from the Sensex pack.
Reliance Capital topped turnover charts on BSE clocking turnover of Rs 342.50 crore followed by Reliance Natural Resources (Rs 296 crore), Reliance Industries (Rs 235.80 crore), SEL Manufacturing (Rs 228 crore) and ONGC (Rs 137.80 crore) in that order.
Reliance Natural Resources topped volumes chart on BSE notching volumes of 2.92 crore shares followed by Ispat Industries (1.41 crore shares), Tata Teleservices (Maharashtra) (1.19 crore shares), Kashyap Technologies (88.30 lakh shares) and Chambal Fertilisers & Chemicals (86 lakh shares).
SEL Manufacturing saw heightened activity on high volumes. From the day’s low of Rs 530, the stock galloped to strike a day’s high of Rs 627.80. The stock settled with gain of 6.55% to Rs 609.70 on high volumes of 38.56 lakh shares.
Shiv Vani Oil & Gas Exploration Services jumped 5.16% to Rs 576 after the company said secured a contract worth Rs 1610 crore from Oil & Natural Gas Corporation to deploy eight onshore deep drilling rigs. The company made this announcement during trading hours today, 7 August 2008.
Dr Reddy’s Laboratories surged 4.02% to Rs 606.10 after the company said Dr Reddy’s Laboratories Holdings, a promoter group firm, acquired 1.95 lakh equity shares from
Elecon Engineering Company soared 9.76% to Rs 117.55 after the company said Emtici Engineering, a promoter, purchased 1.07 lakh equity shares on 16 July 2008 from open market. The company made this announcement after trading hours on Wednesday, 6 August 2008.
Ansal Properties & Infrastructure spurted 15.85% to Rs 105.60 after 9.8 lakh shares or 0.86% of the company’s equity changed hands in a block deal on BSE at Rs 92 each. open market for Rs 11.36 crore.
US crude rose 26 cents to $118.84 a barrel today, 7 August 2008. The contract is almost 20% off the record of $147.27 a barrel hit on 11 July 2008.
European markets, which opened after Indian market, edged higher. Key benchmark indices in UK, Germany and France were up by between 0.48% and 0.98%.
Asian markets, which opened before Indian market, were trading mixed today, 7 August 2008. Key benchmark indices in Japan, Taiwan Singapore, and South Korea were down by between 0.02% and 1.80%. However Hong Kong's Hang Seng index and China’s Shanghai Composite were up 0.70% and 0.30% respectively.
US stocks rose on Wednesday, building on the previous day's big gains, as a further drop in oil prices and a reassuring outlook from Cisco Systems overshadowed persistent credit concerns. The Dow Jones industrial average added 40.30 points, or 0.35%, to 11,656.07. The Nasdaq Composite index rose 28.54 points, or 1.21%, to 2,378.37.
Today's Pick - Rolta India
We recommend a sell in Rolta India from a short-term perspective. From the charts of Rolta India, we observe that the stock has been on a medium-term uptrend from its early July low of Rs 224. This uptrend has reversed from the significant resistance at Rs 340. The stock had formed a medium term peak at this level in May too and declined more than 30 per cent from there. We notice a bearish engulfing candlestick pattern (a reversal pattern) in the daily chart on August 5. The oscillators in the daily chart are in the overbought region and are ripe for a correction. The daily relative strength index has entered into the neutral region from the bullish zone. Loss of momentum is evident in the short-term. Taking into consideration, the significant resistance and bearish engulfing candlestick pattern, we are negative on the stock in the short-term. We expect the stock to decline until it hits our price target of Rs 280 in the approaching trading sessions. Traders with short-term perspective can sell the stock, while maintaining a stop-loss at Rs 326.
via BL
Morning Call - Aug 7 2008
Market Grape Wine :
In House :
Nifty at a support of 4495 and 4442 levels with resistance at 4560 and 4625 levels
Sell : in Cash RELINFRA below 1015 target 966 s/l of 1032
Sell : in Cash ADLABS below 526 target 505 s/l of 537
Sell: in F&O TISCO below 645 target 625 s/l of 655
Buy : BOB above 275 target 295 s/l of 265
Out House:
Markets at a support of 14786 & 14878 levels with resistance at 15225 & 15351 levels .
Inflation today might be seen at 11.98 to 12.02% .
Buy : Infy & Wipro
Buy : MRPL & EssarOIL
Buy : Aptech with medium term prespective
Buy : Adalbs
Buy : Titan & SesaGoa
Buy : RELInfra & RelCap
Buy : LNT
Buy : IBulls & IBreal
Buy : Core project
Buy : HDFCBANK & IciciBank
Buy : RComm & Bharti
Dark Horse : RelCap , Titan , Sail , Aftek , RIL , RComm , Core & Adlabs
Trading Calls - Aug 7 2008
Nifty (4518) Sup 4420 Res 4590
Sell NDTV (374) SL 379
Target 364, 360
Sell Chambal (78) SL 81
Target 73, 71
Sell Tata Power (1063) 1080
Target 1035, 1030
Buy Praj Ind (188) SL 184
Target 197, 199
Buy Educomp (3271) SL 3245
Target 3320, 3330
Rec-oil and Recall
If you want to test your memory, try to recall what you were worrying about one year ago today.
Guess what! Around a year ago, the indices were more or less at these levels with the major worry being the sub-prime crisis. A year later, we are at the same levels as far as the indices are concerned; not to forget the January highs though. The worries now include oil and rupee among others. Oil thankfully has been cooling a bit thanks to the weekly inventories report which showed crude supplies unexpectedly grew. The US markets, which opened weak recoiled following a slip in oil prices. The Indian government meanwhile has ruled out an immediate reduction in petrol and diesel prices following softening of global crude prices.
The outlook for today is a flat open with a quieter first half. Thereafter, indices could swing wildly depending on expectations of inflation and adjustments in large caps. Reports state that there is short covering in many large cap stocks. At the same time mutual fund units are being sold to book losses at lower NAVs. (Of course similar buying also seems to be happening the next day or so in mutual funds, reports state)
If investors are trying to mimic what the big players are doing then remember, these guys have a larger asset allocation across various asset classes. They are often hedging or adjusting one against another. It would be foolish to just follow selectively. In times like this, concentrate more on your own portfolio and your own asset allocation.
The Securities and Exchange Board of India and the Reserve Bank of India, on Wednesday issued final guidelines for launching exchange traded currency futures. Stock exchanges can now start currency futures after obtaining approval from both the regulators. Banks need to have a minimum net worth of Rs5bn to trade in currency derivatives, according to new directives issued.
The size of each contract will be $1,000 and the contract will be quoted and settled in Indian rupees. The settlement price shall be the Reserve Bank of India’s reference rate on the last trading day. The maturity of the contracts shall not exceed 12 months.
Some action could be expected in counters like RCom. But for heaven’s sake don’t buy on expectations that Amar Singh will become telecom minister or similar theories. Meanwhile, Cellular Operators’ Association of India has said that Trai’s directive to GSM operators to offer interconnection to CDMA player Reliance Communications is against interconnect agreements. Reliance Communication’s plans to launch its GSM services has a hit bump with the existing operators refusing to accept the telecom regulator’s orders to offer interconnection links to the new player.
i-flex would be closely watched with reports stating that Deepak Ghaisas, R Ravisankar and Rajesh Hukku, of i-flex are expected to leave the company in the next few weeks.
Bharat Forge could be in action in the coming days as it plans to step into the manufacture of ultra heavy forgings catering to the power sector, including nuclear plants. Expect some announcements tomorrow.
The Finance ministry is against issuance of oil bonds in advance to oil marketing companies, a report stated.
Sugar production in the country fell 6% in the 10 months to July 2008.
The Centre’s direct tax revenues continue to be buoyant, with net collections recording a 46.95 per cent growth in the first four months of the current fiscal. Net direct tax collections stood at Rs 71,648 crore during April-July 31 this year as compared with Rs 48,756 crore collected in the same period last year.
The country was expected to maintain the high growth trajectory in the Eleventh Plan period despite the current high rates of inflation. The Chief Economic Advisor to the Ministry of Finance, Dr Arvind Virmani, said, “The average growth in the 11th Plan period will remain at 9 per cent.” He dismissed fears of any “overheating” in the economy.
Prime Minister’s Economic Advisory Council (EAC) Chairman C. Rangarajan projected a moderation in India’s economic growth to 7.5-8 per cent this fiscal with no change in the Reserve Bank’s monetary stance until inflation cools down to reasonable levels. Dr. Rangarajan said: “There are certain factors, both domestic and external, which may add to the slowdown of growth rate, but we still think that the growth rate could be 7.5-8 per cent”.
Meanwhile, the monsoon has been active over Konkan-Goa and south madhya Maharashtra during the 24 hours ending Wednesday morning. Rainfall occurred at most places over Konkan-Goa, south madhya Maharashtra, Marathwada and south Gujarat region; at many places over north madhya Maharashtra and north Gujarat; and at isolated places over Saurashtra-Kutch.
Profit booking may continue
Bulls managed to extend gains to second straight trading session Sensex on Wednesday with the benchmark Sensex regaining the 15k mark. The rally was triggered after Fed decided to keep its key interest rates untouched. Sentiments were further improved as even the crude oil slipped for third day in a row. However, a bout of selling pressure in the last hour of the trading session dragged the Indian bourses from day’s high.
Finally, the benchmark Sensex gained 112 points to close at 15,073 and Nifty was up by 14 points to close at 4,517.
Among the 30-components of Sensex, 20 stocks were in green and 10 stocks were in red. Bharti Airtel, L&T, ICICI Bank and Reliance Industries were among the major gainers. On the other hand, HDFC, SBI and Tata Steel were among the major laggards.
Sugar stocks attracted heavy demand after sugar prices hit 52-week high of Rs19.02per kg on 06 August 2008 on back of improvement in sugar prices as forecast indicate lower sugar production in the ext season.
Triveni Engineering rallied by over 13%, Renuka Sugar surged by over 2%, Balrampur Chini advanced by over 2.5% and Sakhti Sugar rose over 1%.
Shares of Elecon Engineering rallied by over 5% to Rs107 after the company announced that it secured five major orders from their Material Handling Equipment (MHE) division totaling to Rs5.24bn. The scrip touched an intra-day high of Rs110 and a low of Rs101 and recorded volumes of over 14,00,000 shares on BSE.
Shares of ICSA India was locked at 5% to Rs377.40 after the company announced that it has entered into a MoA with ECE Industries Ltd, New Delhi to purchase all of the machineries and equipments along with available drawings, designs and data belonging to the Energy Meter Plant of ECE Industries Ltd situated at Hyderabad.
This MoA also permits ICSA to use the brand name of ECE for a period of six months from the date of MoA, after which the said energy meters shall be marketed under the own brand name of ICSA. The scrip touched an intra-day high of Rs377.40 and a low of Rs362 and recorded volumes of over 1,00,000 shares on BSE.
Shares of Geometric Ltd gained by 2% to Rs55.3 after the company announced that it signed a contract with Ford Motor Company, to provide Production Support and Software Maintenance Work.
Geometric will provide application management services (AMS) to Ford for production support of its engineering applications suite, which comprises of over 140 integrated applications. The management services will cover issue analysis, investigation, resolution, code fix, software vendor coordination, testing, packaging, validation and global release at various Ford Consumer Business Groups. The scrip touched an intra-day high of Rs58 and a low of Rs54 and recorded volumes of over 5,00,000 shares on BSE.
Shares of Sasken Communication slipped 1.8% to Rs147. The company announced that Sasken Test Lab capabilities have been formally assessed and accredited by National Accreditation Board for Testing and Calibration Laboratories. The scrip touched an intra-day high of Rs156 and a low of Rs146 and recorded volumes of over 7,00,000 shares on BSE.
Shares of Subhash Projects declined 1.6% to Rs182. The company announced that it won Rs3.18bn order from Public Health Engineering Dept. (PHED), Basni, Jodhpur, Government of Rajasthan. The scrip touched an intra-day high of Rs195 and a low of Rs176 and recorded volumes of over 55,000 shares on BSE.
Looking at the last hour of trading session on Wednesday it is likely to that profit booking will prolong on the Indian bourses. Nervousness would also remain before inflation data to be announced after the market hours. The sentiments in the US would also be a tad low as the Fannie and Freddie announced a loss of US$816mn.
- Domestic steelmakers including Tata Steel, Essar Steel, Ispat and JSW Steel have decided to hold prices of their products for another month. (ET)
- Boots Company has signed an agreement with Reliance Retail to enter India’s health and wellness market. (ET)
- 55 of ACC top managers have started receiving Holcim stock this year in lieu of bonuses. (ET)
- A technical snag at Petronet LNG’s Dahej terminal has severely impacted gas supplies to Ratnagiri Gas and Power Dabhol plant. (ET)
- Bharti Airtel and Vodafone Essar will launch 3G i-phone in India on August 22. (ET)
- Bharat Forge has incorporated its 51:49 joint venture with NTPC. (ET)
- JSW Energy will soon foray into the power distribution business. (BS)
- Elecon Engineering Company expects to bag orders worth Rs11bn in the next quarter of the current fiscal. (BS)
- The finance ministry has given its approval to Daiichi Sankyo’s proposed acquisition stake in Ranbaxy. (FE)
- Hindustan Construction Company led consortium has bagged a contract worth Rs14bn from Andhra Pradesh Government for irrigation project. (FE)
- Gujarat State Petroleum Corp will buy LNG for a record US$20/mmbtu the highest rate quoted by an Indian firm in the spot market—from Shell group unit Hazira LNG Ltd. (Mint)
- Power Grid Corporation of India has formed a joint venture company with Teesta Urja Ltd for developing transmission system to evacuate power from the upcoming 1,200 MW Teesta-III Hydro Electric Project in Sikkim. (BL)
- Bharat Forge Ltd plans to step into the manufacture of ultra heavy forgings catering to the power sector, including nuclear plants. (BL)
- Elecon Engineering Company’s material handling equipment division has bagged five major orders worth Rs5.2bn. (BL)
- Union Bank of India and IndusInd Bank have hiked their prime lending rates by 75 basis points. (BL)
- Rio Tinto has decided to set up a greenfield alumina facility in Gujarat. (ET)
- Captain GR Gopinath may sell 2% stake in Air Deccan. (ET)
- HSBC will not sell its 5% stake in Axis Bank
- IDEA Cellular has informed DoT about its willingness to demerge its licences in the Punjab and Karnataka circles into a separate entity. (ET)
- UTV Global Broadcasting Ltd, the broadcasting arm of UTV Software Communications Ltd, is taking two of its channels to Sri Lanka. (BL)
- Epic Energy has acquired Tamil Nadu-based Sathian Sun Power Systems for an undisclosed sum. (ET)
- Eaton Corporation, a US-based automotive company, has struck a distribution agreement with Redington India to distribute its Powerware brand of single phase UPS to IT and ITes customers in the country. (ET)
Economy Front page
- Net direct tax collections grew by 46.95% in April-July 2008 to Rs716.5bn against Rs487.7bn in corresponding period of the previous fiscal. (ET)
- Trai has asked the government to allow Mobile Virtual Network Operators (MVNOs) in the country. (ET)
- Flow of foreign direct investment into sensitive infrastructure sectors such as airports and ports may be taken off from the automatic route once the proposed umbrella law for scrutinizing FDI from the national security angle is put in place. (ET)
- Private players would hike the price of hot-rolled products by Rs 10,000 a ton for the export market. (FE)
- The government has paid about Rs280bn towards subsidy to fertilizer producers till July-end and plans to pay Rs80bn per month till February. (DNA)
FIIs in buying mode
Inflow of Rs 64.10 crore on 5 August 2008
Foreign institutional investors (FIIs) bought shares worth net Rs 64.10 crore on Tuesday, 5 August 2008, compared to their selling of Rs 400.60 crore on Monday, 4 August 2008.
FII inflow of Rs 64.10 crore on 5 August 2008 was a result of gross purchases Rs 4530.10 crore and gross sales Rs 4466 crore. The 30-share BSE Sensex advanced 383.20 points or 2.63% to 14,961.07 on that day.
FII outflow in August 2008 totaled Rs 81.70 (till 5 August 2008). FII outflow in calendar year 2008 totaled Rs 27,383.90 crore (till 5 August 2008).
There are a total of 1,456 FIIs registered with the Securities & Exchange Board of India (Sebi).
Austral Coke & Projects - IPO Analysis
Promoted by Ratan Lal Tamakhuwala and Rishi Raj Agarwal, Austral Coke & Projects was originally incorporated as NRE Stocknet on 22 April 1994. It got its present name from 14 September 2005. Main activity comprises manufacturing of low ash metallurgical (LAM) coke and refractory, trading of textile and providing rental of construction/ earthmoving machineries to medium/large construction companies.
The objective of Austral Coke’s IPO is to set up a Rs 78.12-crore 1,50,000-tonne per annum LAM coke plant at Sindhudurg in Maharashtra and a Rs 30.77-crore 8-MW captive power plant at Sindhudurg, to acquire coal mines to bag more prospecting mining licenses at a cost of Rs 40 crore, and prepayment of high cost debt amounting to Rs 2.54 crore. The company expects commercial production to start from April 2009. The expanded capacity of LAM coke shall be 5,25,000 tonnes per annum. A LAM coke plant with an initial capacity of 50000 tonnes per annum was started in 2004.
The four primary reporting segments of Austral Coke are: LAM coke, refractory, textile and equipment. Lam coke formed 54.7% of the total revenue at Rs 123.97 crore, refractory 0.4% at Rs 0.84 crore, textiles 18.6% at Rs 42.26 crore, and equipment 26.3% at Rs 59.59 crore in the 11 months of the fiscal year ended March 2008 (FY 2008).
In a pre-IPO placement, Somerset India Fund was issued 27.40 lakh shares at a price of Rs 196 per share totaling Rs 53.70 crore.
Strengths
Can take advantage of the significant gap between the price of imported coke and Indian coke. Coke prices have spurted in recent months owing to increased demand from the downstream steel sector and limited supplies.
Also proposes to convert waste heat generated to power to operate its coke oven plant. Surplus power would be sold.
Weaknesses
Coke is a cyclical business. Currently coke prices are high.
The promoter group has other companies operating in similar line of business and short-term MOUs have been entered with them to allocate activities.
Corporate guarantees of Rs 103.15 crore on behalf of group companies Gremach Infrastructure and Armstrong Infrastructure.
Valuations
At the price band of Rs 164 -Rs 196, the annualised EPS for the 11 months ended February 2008 on post-issue equity (green shoe option not exercised) works out to Rs 13.2 and PE 12.4-14.8, while the annualised EPS for the 11 months ended February 2008 on post-issue equity (green shoe option exercised) works out to Rs 12.7 and PE 12.9-15.4. The largest listed player Gujarat NRE coke is trading at a TTM PE of 16.6.
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