Eveninger - Aug 20 2008
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Wednesday, August 20, 2008
Sensex up 134 pts, closes above 14k
The Bombay Stock Exchange benchmark Sensex on Wednesday spurted by over 134 points to snap its five-day long losing spree with metal, capital goods and realty sectors attracting buying support amid positive cues in Asian bourses.
The 30-share Sensex, which lost nearly 960 points in past five sessions, rebounded to post a gain 134.50 points at 14,678.23. The key index touched the day's high of 14,746.20 and a low of 14,584.03 points.
The 50-share National Stock Exchange index Nifty also rose by 47.50 points at 4,415.75, after touching the day's high of 4434.90 and a low of 4365.45 points.
IT stocks were in demand after US dollar strengthened to the highest level this year, raising expectations of strong profit earnings for software exporting companies.
Marketmen said a firming trend in Asian region boosted the trading sentiment. Hong Kong stocks rose, with the benchmark index rebounding from a one-year low on speculation that China will introduce measures to support the economy.
However, investors preferred to lighten their positions ahead of the inflation data to be released tomorrow amid speculations that the rate of price rise might surge further.
Post Session Commentary - Aug 20 2008
The domestic market bounced back today and broke its five days losing streak to close with gains due to sustained buying in stocks across various sectors. Market opened on upbeat note tracking positive cues from the Asian markets as China lifted up the sentiments in Asian markets. Further market continued to sustain the positive momentum and traded with gains till end as buying support maintained across the board. The market had moved up sharply in mid afternoon trade. Positive cues from European markets also boosted up the sentiments. NSE Nifty ended above 4,400 mark and BSE Sensex above 14,600 level. From the sectoral front, most indices closed in green and among those Metal, Capital goods, Reality, Pharma and Oil & Gas stocks were leading gainers. Mid cap and Small cap stocks also witnessed buying interest. However FMCG stock remained out of favor as witnessed selling from this basket. The market breadth was positive as 1666 stocks closed in green while 969 stocks closed in red and 83 stocks remained unchanged.
The BSE Sensex closed higher by 134.50 points at 14,678.23 and NSE Nifty ended up by 47.50 points at 4,415.75. The BSE Mid Caps and Small Cap closed with gains of 60.05 points and 53.49 points at 5,826.37 and 7,066.23 respectively. The BSE Sensex touched intraday high of 14,746.20 and intraday low of 14,584.03.
Gainers from the BSE are Reliance Com Ltd (3.76%), Grasim Indus (3.64%), BHEL (3.40%), Bharti Airtel (2.99%), Ranbaxy Lab (2.71%), HDFC Bank Ltd (2.52%), DLF Ltd (1.90%), NTPC Ltd (1.41%) and JP Associates (1.27%).
The BSE Capital Goods index advanced by 207.11 points at 12,269.52. Major gainers are Reliance Industrial Infra (5.00%), Walchand In (4.99%), Gammon Indi (3.71%), Rajesh ABB Ltd (3.43%), BHEL (3.40%) and Elecon Eng C (3.22%).
The BSE Metal index ended up by 202.85 points at 12,475.65. Gainers are SAIL (5.53%), NMDC Ltd (5.00%), Ispat Industries (4.74%), Jindal Steel (2.49%), Ispat Jindal Saw (2.44%), and Hindustan Zinc (2.19%).
The BSE Reality index closed higher by 90.61 points at 5,207.81 as Orbit Co (5.00%), Parsvnath (3.21%), Mahindra Life (3.14%), Akruti City (2.77%), Sobha Dev (2.58%) and Unitech Ltd (2.52%) closed in positive territory.
The BSE Pharma index gained 69.97 points to close at 4,336.76. Major gainers are Opto Circuit (6.52%), Matrix Lab (4.33%), Wockhardt Lt (3.52%), Ranbaxy Lab (2.71%), Sun Pharma (2.66%) and Cipla Ltd (2.50%).
The BSE Oil & Gas index ended up by 44.56 points at 10,032.47 as Relaince Nat Res (3.98%), Gail India (1.54%), Reliance Petroleum (1.25%), Reliance (1.03%), BPCL (0.93%) and Essar Oil Ltd (0.86%) closed in positive territory.
The BSE FMCG index closed marginally lower 1.14 points at 2,161.71. Lossers are United Spr (2.07%), Marico Ltd (1.86%), HUL (0.41%), Nestle Ltd (0.33%), ITC Ltd (0.11%), and Godrej Cons (0.08%).
BSE Bulk Deals to Watch - Aug 20 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
20/8/2008 500013 ANSAL INFRAS MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S.V. B 608140 106.44
20/8/2008 512379 CRESSANDA SO RAKSHIT JAIN S 75000 13.60
20/8/2008 512379 CRESSANDA SO KALPESH SHAH S 100000 13.60
20/8/2008 512379 CRESSANDA SO KH SECURITIES PVT LTD S 130000 13.55
20/8/2008 504000 ELPRO INTERN INDIA MAX INVESTMENT FUND LTD. B 35000 450.00
20/8/2008 531739 GENNEX LAB DIMENSIONS INVESTMENTS AND SECURITIES LTD B 200000 54.00
20/8/2008 531739 GENNEX LAB C V NARAYANAN B 60000 47.00
20/8/2008 531739 GENNEX LAB DIMENSIONS INVESTMENT AND SECURITIES LTD S 80000 47.99
20/8/2008 524184 GULSHA SUG C ARION COMMERCIAL PVT LTD B 110554 32.76
20/8/2008 524184 GULSHA SUG C ARION COMMERCIAL PVT LTD S 86105 32.90
20/8/2008 505840 JAIPAN INDUS VHM IMPEX PRIVATE LTD B 32503 65.85
20/8/2008 516078 JUMBO BAG LT PRAFUL BABULAL SHAH B 41289 42.12
20/8/2008 505890 KENNAMETAL DSP ML MICROCAP FUND B 100000 235.49
20/8/2008 505890 KENNAMETAL RELIANCE TAX SAVER ELSS FUND S 99173 235.50
20/8/2008 531602 KOFF BR PICT PRAVIN DHARAMSHI GALA B 46981 27.03
20/8/2008 531528 MAARS SOFTWR BASMATI SECURITIES PVT LTD B 743461 4.19
20/8/2008 533010 OCTAV INVES HITESH SHASHIKANT JHAVERI B 27094 82.41
20/8/2008 531374 SAAG RR INFR HITESH SHASHIKANT JHAVERI B 53224 68.23
20/8/2008 531374 SAAG RR INFR YUVAK SHARE TRADING PVT LTD B 112606 68.20
20/8/2008 531374 SAAG RR INFR YUVAK SHARE TRADING PVT LTD S 103662 68.11
20/8/2008 532886 SEL MANUF HARDIK M MITHANI B 119356 329.86
20/8/2008 532886 SEL MANUF MARWADI SHARES AND FINANCE LIMITED B 111225 326.37
20/8/2008 532886 SEL MANUF SPJSTOCK B 110090 326.88
20/8/2008 532886 SEL MANUF SAM GLOBAL SECURITIES LTD B 92893 325.09
20/8/2008 532886 SEL MANUF B K SHAH CO B 187106 324.93
20/8/2008 532886 SEL MANUF HARDIK M MITHANI S 119356 328.19
20/8/2008 532886 SEL MANUF MARWADI SHARES AND FINANCE LIMITED S 111225 325.87
20/8/2008 532886 SEL MANUF SPJSTOCK S 110090 326.32
20/8/2008 532886 SEL MANUF SAM GLOBAL SECURITIES LTD S 92907 325.41
20/8/2008 532886 SEL MANUF B K SHAH CO S 187102 325.05
20/8/2008 508976 SPANC TELESY KAPIL PURI B 115456 104.78
20/8/2008 530459 VALSON IND AMI STOCK SHARE BROKERS PLTD S 30000 37.02
20/8/2008 533011 VISHAL INFO MARWADI SHARES AND FINANCE LIMITED B 113137 309.23
20/8/2008 533011 VISHAL INFO R M SHARES TRADING PVT LTD B 241737 311.04
20/8/2008 533011 VISHAL INFO H.J.SECURITIES PVT.LTD. B 186551 310.84
20/8/2008 533011 VISHAL INFO MINIL NITISH THAKUR B 103284 311.92
20/8/2008 533011 VISHAL INFO NAVEEN TAPARIA B 66259 315.60
20/8/2008 533011 VISHAL INFO YUVAK SHARE TRADING PVT LTD B 79971 318.50
20/8/2008 533011 VISHAL INFO MARWADI SHARES AND FINANCE LIMITED S 113137 310.00
20/8/2008 533011 VISHAL INFO R M SHARES TRADING PVT LTD S 241737 310.38
20/8/2008 533011 VISHAL INFO H.J.SECURITIES PVT.LTD. S 186551 311.01
20/8/2008 533011 VISHAL INFO MINIL NITISH THAKUR S 103284 311.55
20/8/2008 533011 VISHAL INFO NAVEEN TAPARIA S 66259 314.13
20/8/2008 533011 VISHAL INFO YUVAK SHARE TRADING PVT LTD S 79613 317.40
20/8/2008 519602 VMF SOFT TEC P. ARUNA RANI B 103451 5.83
20/8/2008 519602 VMF SOFT TEC KOTHAMASU LAKSHMAN RAO S 42024 5.76
20/8/2008 519602 VMF SOFT TEC KOTHAMASU LAKSHMANA RAO S 60000 5.85
NSE Bulk Deals to Watch - Aug 20 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
19-AUG-2008,SELMCL,SEL Manufacturing Company,AMBIT SECURITIES BROKING PVT. LTD.,BUY,109805,297.88,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,B K SHAH CO KETAN BHAILAL SHAH,BUY,234200,298.76,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,DINESH MUNJAL,BUY,90803,302.50,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,HARBUX SINGH SIDHU,BUY,80623,295.18,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,MANIPUT INVESTMENTS PVT LTD,BUY,118284,298.16,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,MARWADI SHARES AND FINANCE LIMITED,BUY,184167,298.09,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,MBL & COMPANY LTD.,BUY,119032,301.10,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,TRANSGLOBAL SECURITIES LTD.,BUY,173753,302.69,-
19-AUG-2008,SUBEX,Subex Limited,AMBIT SECURITIES BROKING PVT. LTD.,BUY,255837,112.47,-
19-AUG-2008,SUBEX,Subex Limited,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,234071,114.98,-
19-AUG-2008,SUBEX,Subex Limited,MBL & COMPANY LTD.,BUY,268839,113.14,-
19-AUG-2008,SUBEX,Subex Limited,NAMAN SECURITIES & FINANCE PVT LTD,BUY,318416,111.18,-
19-AUG-2008,SUBEX,Subex Limited,PACE FINANCIAL SERVICES,BUY,175001,116.03,-
19-AUG-2008,SUBEX,Subex Limited,TRANSGLOBAL SECURITIES LTD.,BUY,182794,114.45,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,ANKITA VISHAL SHAH,BUY,4002,38.72,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,B K SHAH CO KETAN BHAILAL SHAH,BUY,6607,34.49,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,NIKUNJ K SHAH,BUY,8009,33.53,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,PRAGATI PAPER MILLS LTD,BUY,4035,37.95,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,YUVAK SHARE TRADING PVT LTD,BUY,10042,40.50,-
19-AUG-2008,VITLINFO,Vishal Information Techno,AMBIT SECURITIES BROKING PVT. LTD.,BUY,92328,291.70,-
19-AUG-2008,VITLINFO,Vishal Information Techno,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,BUY,301701,291.67,-
19-AUG-2008,VITLINFO,Vishal Information Techno,CHOKHANI SECURITIES LTD,BUY,185167,290.39,-
19-AUG-2008,VITLINFO,Vishal Information Techno,CPR CAPITAL SERVICES LTD.,BUY,98673,296.53,-
19-AUG-2008,VITLINFO,Vishal Information Techno,DINESH MUNJAL,BUY,272175,296.52,-
19-AUG-2008,VITLINFO,Vishal Information Techno,DIPAN MEHTA SHARE & STOCK BROKERS PVT. LTD.,BUY,58081,286.42,-
19-AUG-2008,VITLINFO,Vishal Information Techno,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,95093,294.81,-
19-AUG-2008,VITLINFO,Vishal Information Techno,G RAMAKRISHNA,BUY,141000,298.21,-
19-AUG-2008,VITLINFO,Vishal Information Techno,G.S.V. COMMODITIES PRAVITE LIMITED,BUY,55591,298.91,-
19-AUG-2008,VITLINFO,Vishal Information Techno,HARBUX SINGH SIDHU,BUY,326323,299.61,-
19-AUG-2008,VITLINFO,Vishal Information Techno,HARSHA RAJESHBHAI JHAVERI,BUY,56036,267.17,-
19-AUG-2008,VITLINFO,Vishal Information Techno,HOTEL LIBRARY CLUB P LTD,BUY,64992,296.48,-
19-AUG-2008,VITLINFO,Vishal Information Techno,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,259095,297.40,-
19-AUG-2008,VITLINFO,Vishal Information Techno,MANIPUT INVESTMENTS PVT LTD,BUY,156756,296.11,-
19-AUG-2008,VITLINFO,Vishal Information Techno,MARWADI SHARES AND FINANCE LIMITED,BUY,77834,294.96,-
19-AUG-2008,VITLINFO,Vishal Information Techno,NAMAN SECURITIES & FINANCE PVT LTD,BUY,56896,294.66,-
19-AUG-2008,VITLINFO,Vishal Information Techno,OPG SECURITIES PVT. LTD.,BUY,65382,290.77,-
19-AUG-2008,VITLINFO,Vishal Information Techno,PRASHANT JAYANTILAL PATEL,BUY,89512,288.39,-
19-AUG-2008,VITLINFO,Vishal Information Techno,R APPALA RAJU,BUY,60000,297.72,-
19-AUG-2008,VITLINFO,Vishal Information Techno,R.M. SHARE TRADING PVT LTD,BUY,313352,289.12,-
19-AUG-2008,VITLINFO,Vishal Information Techno,RAMPRASAD PURSHOTTAM KABRA HUF,BUY,60188,296.27,-
19-AUG-2008,VITLINFO,Vishal Information Techno,TRANSGLOBAL SECURITIES LTD.,BUY,101476,294.67,-
19-AUG-2008,VITLINFO,Vishal Information Techno,YUVAK SHARE TRADING PVT LTD,BUY,233608,293.32,-
19-AUG-2008,OCTAV,Octav Investments Limited,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,19145,80.86,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,AMBIT SECURITIES BROKING PVT. LTD.,SELL,109305,298.65,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,B K SHAH CO KETAN BHAILAL SHAH,SELL,234426,299.15,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,DINESH MUNJAL,SELL,90803,303.70,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,HARBUX SINGH SIDHU,SELL,80623,295.96,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,MANIPUT INVESTMENTS PVT LTD,SELL,118284,298.64,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,MARWADI SHARES AND FINANCE LIMITED,SELL,184167,298.61,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,MBL & COMPANY LTD.,SELL,119038,300.72,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,TRANSGLOBAL SECURITIES LTD.,SELL,173753,302.97,-
19-AUG-2008,SUBEX,Subex Limited,AMBIT SECURITIES BROKING PVT. LTD.,SELL,255837,112.67,-
19-AUG-2008,SUBEX,Subex Limited,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,230571,115.19,-
19-AUG-2008,SUBEX,Subex Limited,MBL & COMPANY LTD.,SELL,268839,113.28,-
19-AUG-2008,SUBEX,Subex Limited,NAMAN SECURITIES & FINANCE PVT LTD,SELL,292328,110.81,-
19-AUG-2008,SUBEX,Subex Limited,PACE FINANCIAL SERVICES,SELL,89480,117.47,-
19-AUG-2008,SUBEX,Subex Limited,TRANSGLOBAL SECURITIES LTD.,SELL,182794,114.61,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,ANKITA VISHAL SHAH,SELL,1001,43.77,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,B K SHAH CO KETAN BHAILAL SHAH,SELL,4212,32.97,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,NIKUNJ K SHAH,SELL,6882,37.97,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,PRAGATI PAPER MILLS LTD,SELL,4036,36.22,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,THANGAMUTHU. S. C,SELL,4000,44.23,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,VAISHNAV RAJESH CHANDRAKANT,SELL,20000,35.37,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,YUVAK SHARE TRADING PVT LTD,SELL,1074,34.49,-
19-AUG-2008,VITLINFO,Vishal Information Techno,AMBIT SECURITIES BROKING PVT. LTD.,SELL,92328,292.02,-
19-AUG-2008,VITLINFO,Vishal Information Techno,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,SELL,301701,292.31,-
19-AUG-2008,VITLINFO,Vishal Information Techno,CHOKHANI SECURITIES LTD,SELL,185167,292.31,-
19-AUG-2008,VITLINFO,Vishal Information Techno,CPR CAPITAL SERVICES LTD.,SELL,98673,296.68,-
19-AUG-2008,VITLINFO,Vishal Information Techno,DINESH MUNJAL,SELL,272675,296.56,-
19-AUG-2008,VITLINFO,Vishal Information Techno,DIPAN MEHTA SHARE & STOCK BROKERS PVT. LTD.,SELL,58081,286.53,-
19-AUG-2008,VITLINFO,Vishal Information Techno,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,95093,295.18,-
19-AUG-2008,VITLINFO,Vishal Information Techno,G RAMAKRISHNA,SELL,141000,292.78,-
19-AUG-2008,VITLINFO,Vishal Information Techno,G.S.V. COMMODITIES PRAVITE LIMITED,SELL,55591,298.01,-
19-AUG-2008,VITLINFO,Vishal Information Techno,HARBUX SINGH SIDHU,SELL,327023,299.57,-
19-AUG-2008,VITLINFO,Vishal Information Techno,HARSHA RAJESHBHAI JHAVERI,SELL,55537,309.27,-
19-AUG-2008,VITLINFO,Vishal Information Techno,HOTEL LIBRARY CLUB P LTD,SELL,64992,296.62,-
19-AUG-2008,VITLINFO,Vishal Information Techno,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,259095,297.31,-
19-AUG-2008,VITLINFO,Vishal Information Techno,MANIPUT INVESTMENTS PVT LTD,SELL,156756,296.34,-
19-AUG-2008,VITLINFO,Vishal Information Techno,MARWADI SHARES AND FINANCE LIMITED,SELL,77834,295.35,-
19-AUG-2008,VITLINFO,Vishal Information Techno,NAMAN SECURITIES & FINANCE PVT LTD,SELL,56366,295.04,-
19-AUG-2008,VITLINFO,Vishal Information Techno,OPG SECURITIES PVT. LTD.,SELL,65382,291.09,-
19-AUG-2008,VITLINFO,Vishal Information Techno,PRASHANT JAYANTILAL PATEL,SELL,89512,288.68,-
19-AUG-2008,VITLINFO,Vishal Information Techno,R APPALA RAJU,SELL,60000,296.82,-
19-AUG-2008,VITLINFO,Vishal Information Techno,R.M. SHARE TRADING PVT LTD,SELL,313353,289.45,-
19-AUG-2008,VITLINFO,Vishal Information Techno,RAMPRASAD PURSHOTTAM KABRA HUF,SELL,60188,296.59,-
19-AUG-2008,VITLINFO,Vishal Information Techno,TRANSGLOBAL SECURITIES LTD.,SELL,101476,295.49,-
19-AUG-2008,VITLINFO,Vishal Information Techno,YUVAK SHARE TRADING PVT LTD,SELL,234250,293.64,-
Bulls strike back
The Sensex, which saw a 79-point loss on Monday and a 102-point loss on Tuesday, staged a strong comeback today. In perspective, the Sensex seems all set to buck the losing trend, today. The 30-stock index started the day 67 points higher from yesterday’s closing taking cue from buoyant Asian indices. On the back of strong buying in heavyweights, realty, capital goods and health care stocks, the index rallied to today’s high of 14,746 (around 222 points higher than yesterday’s close) in afternoon. The index held the high ground and traded above 14,600 (about 70 points higher from yesterday’s closing) for the major part of the day and finally ended at 14,678, up 135 points its yesterday’s close. The 50-stock Nifty of NSE advanced 48 points to close at 4,416.
All 13 sectoral indices bar fast moving consumer good (FMCG; down 0.01%) index of the BSE ended the session with gains. Realty index (up 2.13%) led the list of sectoral indices that posted gains for the day, followed by power, metal, capital goods, and health care indices each of which ended around 2% higher.
Among the gainers in heavyweights, Reliance Communications soared 4% at Rs415.80, Grasim Industries flared up 3.48% at Rs2,025.15, BHEL jumped 3.41% at Rs1,735.05, HDFC Bank scaled up 3.28% at Rs1,247, Bharti Airtel surged 2.96% at Rs815, Ranbaxy Laboratories added 2.71% at Rs505.65, DLF jumped 1.72% at Rs509 and Reliance Infrastructure gained 1.55% at Rs1,009.70. However, ONGC, Mahindra & Mahindra, and Satyam Computer services registered marginal losses for the day.
The market breadth was extremely positive as around 61% stocks (1,662 stocks) advanced, while around 35% stocks (970 stocks) declined on the BSE. Around 3% stocks (86 stocks) ended unchanged.
On turnover front, over 1.89 crore Reliance Natural Resources shares changed hands on the BSE followed by Chambal Fertilisers & Chemicals (1.14 crore shares), Ispat Industries (0.96 crore shares), Vishal Information Technologies (0.91 Crore shares) and Nagarjuna Fertilisers & Chemicals (76 lakh shares).
In value terms, Vishal Information Technologies registered a turnover of Rs286 crore followed by Reliance Capital (Rs233 crore), Reliance Natural Resources (Rs187 crore), Reliance Industries (Rs168 crore), and SEL Manufacturing Company (Rs159 crore).
Nifty August 2008 futures at premium
Turnover slips
Nifty August 2008 futures were at 4442.35, a sharp 26.60-point premium over the spot closing of 4,415.75. NSE's futures & options (F&O) segment turnover fell to Rs 38567.7 crore from Rs 43426.67 crore on Tuesday, 19 August 2008.
Reliance Industries (RIL) August 2008 futures was the most active contract with turnover of Rs 694.53 crore. The contract was at 2262, a premium compared to the spot closing of 2257.65.
Reliance Capital August 2008 futures were at premium at 1309.05 compared to the spot closing of 1298.
However ICICI Bank August 2008 futures were at discount at 679.20, as compared to spot closing of 680.15
In the cash market, the S&P CNX Nifty gained 47.50 points or 1.09% at 4,415.75.
Nifty August 2008 futures are set to expire on Thursday, 28 August 2008. As per reports, marketwide rollover of positions from August 2008 series to September 2008 series stood at 7.30%, as of Tuesday, 19 August 2008.
Meanwhile 39 stocks will be included in futures & options segment of the National Stock Exchange from tomorrow, 21 August 2008.
They are ABG Shipyard, Akruti City, Asian Paints, Balaji Telefilms, Container Corporation of India, Core Projects, Deccan Chronicle Holdings, Dish TV, Everonn Systems, Firstsource Solutions, Gujarat State Petronet, GTL Infrastructures, HCL Infosystems, Indiabulls Real Estate, ICSA, KLG Systel, KS Oils, Mindtree Consulting, Mercator Lines, MIC Electronics, Monnet Ispat, MRF, Nava Bharat Ventures, Noida Toll Bridge Company, Opto Circuit, Orbit Corporation, Prism Cement, PTC India, Reliance Industrial Infrastructures, Sintex Industries, SREI Infrastructure, Thermax, Torrent Power, TV 18, UCO Bank, UTV Software, Voltamp Transformers, Walchandnagar Industries.
Market snaps five-day losing streak
The market ended with decent gains after it had posted losses for the last five successive trading sessions. However, it came off from a intra-day high hit in late trade.
Asian stocks rebounded from a two-year low as Chinese shares surged on hopes the government will introduce a stimulus package to boost the slowing economy and aid the stock and property markets. European markets which opened after Indian market were in green.
The BSE 30-share Sensex rose 134.50 points or 0.92% to 14,678.23. At day’s high of 14,746.20, the index gained 202.47 points in late trade. At the day’s low of 14,584.03, the Sensex was up 40.30 points in mid-morning trade.
The S&P CNX Nifty rose 47.50 points or 1.09% to 4,415.75.
Sensex had lost 960.19 points or 6.6% to 14,543.73 on 19 August 2008 from a recent high of 15503.92 hit on 11 August 2008. The barometer index is down 5,608.76 points or 27.64% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,528.54 points or 30.78% away from its all-time high of 21,206.77 struck on 10 January 2008.
The BSE clocked a turnover of Rs 4,233 crore today, 20 August 2008 as compares to turnover of Rs 3,972.48 crore on 19 august 2008.
Nifty August 2008 futures were at 4442.35, a sharp 26.60-point premium over the spot closing of 4,415.75. NSE's futures & options (F&O) segment turnover fell to Rs 38567.7 crore from Rs 43426.67 crore on Tuesday, 19 August 2008.
The BSE Mid-Cap index was up 1.04% to 5,826.37 and the BSE Small-Cap index was up 0.76% at 7,066.23.
BSE Realty index (up 1.76% to 5,207.81), BSE Power index (up 1.72% to 2,660.14), BSE Capital Goods index (up 1.72% to 12,269.52), BSE Metal index (up 1.65% to 12,475.65), BSE HealthCare index (up 1.64% to 4,336.76), BSE Teck index (up 1.26% to 3,048.19), BSE PSU index (up 1.2% to 6,975.66) outperformed Sensex.
BSE FMCG index (down 0.05% to 2,161.71), BSE Auto index (up 0.23% to 3,858.27), BSE IT index (up 0.28% to 3,903.22), BSE Consumer Durables index (up 0.3% to 3,794.77), BSE Oil & Gas index (up 0.45% to 10,032.47), BSE Bankex (up 0.63% to 6,935.78) underperformed Sensex.
The market breadth was strong on BSE with 1,666 shares advancing as compared to 969 that declined. 83 shares remained unchanged.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries rose 1.03% to Rs 2,244.15. It came off from sessions high of Rs 2,258.40
Large-cap diversified firm Grasim Industries rose 3.64% to Rs 2,028.35. It recovered from session’s low of Rs 1,955.
India’s largest electric equipment maker by sales Bharat Heavy Electricals rose 3.4% to Rs 1,734.90. It came off from session’s high of Rs 1,743 hit in late trade.
India’a largest engineering and construction firm by sales Larsen & Toubro rose 1.5% to Rs 2,714.65. It came off from session’s high of Rs 2,725 hit in late trade. As per reports, L&T is close to buying equity stake in coal mines in Australia and Indonesia to increase its focus on the power sector. In the next couple of years, L&T hopes to have 4,000-6,000 megawatt (MW) of power plants under development and the equity in coal mines abroad will be to feed these power plants.
India's largest listed telecom services provider by sales Bharti Airtel rose 2.99% to Rs 815.25. It recovered from the session’s low of Rs 793.
India's second largest private sector bank by net profit HDFC Bank rose 2.52% to Rs 1,237.90. It recovered from session’s low of Rs 1,202.05.
India's largest drug maker by sales Ranbaxy Laboratories rose 2.71% to Rs 505.65. It recovered from session’s low of Rs 489.
Realty stocks rose. Unitech (up 2.52% to Rs 169.15), Indiabulls Real Estate (up 1.53% to Rs 315.85), Housing Development & Infrastructure (up 0.67% to Rs 405.25) edged higher.
India’s largest real estate player by market capitalization DLF rose 1.9% to Rs 509.90. It came off from its high of Rs 514.50 hit in late trade.
Power stocks rose. Reliance Infrastructure (up 1.55% to Rs 1,009.70), Reliance Power (up 2.23% to Rs 160.60), NTPC (up 1.41% to Rs 183.95), PowerGrid Corporation of India (up 1.25% to Rs 93.35), Tata Power Company (up 0.59% to Rs 1,024.35) edged higher.
Mahindra & Mahindra (down 2.08% to Rs 549.55), ONGC (down 2.52% to Rs 1,035.85), Satyam Computer Services (down 0.74% to Rs 402.65), ICICI Bank (down 0.01% to Rs 678.30), edged lower from the Sensex pack.
Jaiprakash Associates (up 1.27% to Rs 171.40), HDFC (up 1.24% to Rs 2,311.55), Maruti Suzuki India (up 1.17% to Rs 623.40) edged higher from the Sensex pack.
India’s second largest IT exporter by sales Infosys rose 0.3% to Rs 1,698.70. The stock recovered from session’s low of Rs 1,680.10. Infosys Technologies chief executive S. Gopalakrishnan today, 20 August 2008, said the business environment remained challenging but there was no move by clients for lower prices.
India’s second largest telecom services provider by sales Reliance Communications (RCom) rose 3.76% to Rs 414.85. It had touched a high of Rs 418.20 in late trade. The company on Tuesday launched satellite television operation under the name Big TV. It will compete with Dish TV, state-owned Prasar Bharti's DD Direct, Sun TV's DTH arm and Tata Sky, a venture of the Tata Group and News Corp.
Reliance Natural Resources clocked the highest volume of 1.89 crore shares on BSE. Chambal Fertilisers and Chemicals (1.14 crore shares), Ispat Industries (93.68 lakh shares), Vishal Information Technologies (91.79 lakh shares) and Nagarjuna Fertilisers and Chemicals (76.53 lakh shares) were the other volume toppers in that order.
Vishal Information Technologies clocked the highest turnover of Rs 287.01 crore on BSE. Reliance Capital (Rs 233.66 crore), Reliance Natural Resources (Rs 187.56 crore), Reliance Industries (Rs 168.61 crore) and SEL Manufacturing Company (Rs 159.90 crore) were the other turnover toppers in that order.
European markets were in green. France’s CAC40, Germany’s DAX and UK’s FTSE 100 were up between 0.32% to 0.73%.
Most of the Asian markets were trading higher today, 20 August 2008. China's Shanghai Composite, Taiwan's Taiwan Weighted, Hong Kong's Hang Seng and Singapore's Straits Times rose between 0.39% to 7.63%. However, Japan's Nikkei andSouth Korea's Seoul Composite fell between 0.05% to 0.1%.
US markets declined for a second straight day yesterday, 20 August 2008, as an inflation report agitated a market already rattled by worries about the financial sector. The Dow Jones industrial average plunged 130.84 points, or 1.14%, to 11,348.55. The S&P 500 index lost 11.90 points, or 0.93%, to 1,266.70, and the Nasdaq Composite index slipped 32.62 points, or 1.35%, to 2,384.36.
Market may remain volatile
The market may witness cautious trend as US indices ended on a negative note yesterday and Asian indices are exhibiting upward trends in the morning trades. Although the bias remains positive, investors should maintain caution as profit taking at higher levels may pull down the market. Among the local indices the Nifty could test 4320 and 4270 on the downside while on the upper side it may move up to 4420. The Sensex has a likely support at 14400 and may face resistance at 14700.
US indices finished on a negative note on Tuesday. While the Dow Jones ended in a negative at 11349 declined by 131 points, the Nasdaq down by 33 points at 2384.
Indian floats trading on the US bourses had a mixed outing. Among the major losers Satyam, MRNL, Infosys and Rediff fell over 2-3% each. While Tata Motors, Patni Computer, Dr Reddy's and VSNL closed with marginal loss. However, Wipro, ICICI Bank and HDFC Bank ended with steady gains.
Crude oil prices inched higher in the US market, with the Nymex light crude oil for September delivery adding $1.66 to close at $114.53 a barrel. In the commodity space, the Comex gold for December series gained $11.10 to settle at $816.80.
Pre Session Commentary - Aug 20 2008
The Indian Market is expected to have negative opening on weak global cues as US markets closed lower and Asian markets are trading weak along with rise in crude oil prices. On Tuesday, the market closed with marginal losses after recovering from days low. The domestic market opened on weak note tracking unfavorable cues from the global markets. Further market continued to trade in negative territory due to huge selling over the counters. Weak European markets along with fears of more losses from the US mortgage crisis also fueled to the negative sentiments. Due to some bouts of buying during last hour of trading, market pared its losses to close with minimum gap. NSE Nifty ended below 4,400 mark and BSE Sensex below 14,600 level. From the sectoral front, most of the indices closed in red and among that, Metal, Consumer Durable, IT and Auto stocks contributed to the most of the selling in market. However, Power and Bank stocks were in limelight as were able to gain market favor. The BSE Sensex closed lower by 101.93 points at 14,543.73 and NSE Nifty ended down by 24.80 points at 4,368.25. The BSE Mid Caps and Small Cap closed with losses of 15.48 points and 23.87 points at 5,766.32 and 7,012.74 respectively. We expect that market may remain volatile during the trading session.
On Tuesday, the US market was closed lower on continued concerns regarding financials along with rise in wholesale inflation and a rebound in crude oil prices. PPI Inflation rose 1.2% in July (consensus 0.6%) and core PPI, which excludes food and energy, rose 0.7% (consensus 0.2%). That leaves the YoY increase in total PPI at 9.8%, which is the highest since 1981. Crude oil ended above $115 a barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed lower by 130.84 points to close at 11,348.55. The NASDAQ index decreased by 32.62 points to close at 2,384.36 and the S&P 500 (SPX) fell 11.91 points to close at 1,266.69.
Indian ADRs ended down. In technology sector, Wipro ended higher by (0.78%), while Satyam dropped by (2.67%) along with Infosys by (2.06%) and Patni Computers by (1.16%). In banking sector ICICI bank and HDFC Bank reported marginal gain by (0.10%) and (0.01%). In telecommunication sector, MTNL dropped by (3.07%) along with Tata Communication by (0.26%). Sterlite industries decreased by (0.07%).
Today the major stock markets in Asia are trading weak following the fall on Wall Street overnight. Hang Seng index is trading marginally higher by 38.22 points at 20,522.59 while Taiwan Weighted trading down by 56.03 points at 6,922.57, Japan’s Nikkei trading 12,826.54 dropped by 36.51 points and Singapore''s Straits Times is down by 5.04 points at 2,733.43.
India''s rupee declined for a sixth day, on speculation stock losses will spur investors to reduce local assets. The rupee closed at 43.61 a dollar, the lowest since March 29, 2007, as against 43.59 of Monday.
Today, Nifty has support at 4,276 and resistance at 4,432 and BSE Sensex has support at 14,204 and resistance at 14,812.
Market seen range-bound on mixed global cues
Local benchmark indices are likely to remain range-bound today, 20 August 2008 amid mixed global cues. However high intra-day volatility cannot be ruled out.
On the New York Mercantile Exchange, September crude rose $1.66 at $114.53 yesterday, 19 August 2008 as the dollar weakened, prompting investors to buy into commodities.
Asian markets were trading mixed today, 20 August 2008. China's Shanghai Composite was down 0.93% or 21.90 points at 2,322.56, Japan's Nikkei slipped 0.28% or 36.51 points at 12,828.54, Taiwan's Taiwan Weighted fell 0.80% or 56.03 points at 6,922.57 and South Korea's Seoul Composite lost 0.53% or 8.12 points at 1,533.29. However, Hong Kong's Hang Seng was up 0.19% or 38.22 points at 20,522.59 and Singapore's Straits Times advanced 0.18% or 5.04 points at 2,733.43.
US markets declined for a second straight day yesterday, 20 August 2008, as an inflation report agitated a market already rattled by worries about the financial sector. The Dow Jones industrial average plunged 130.84 points, or 1.14%, to 11,348.55. The S&P 500 index lost 11.90 points, or 0.93%, to 1,266.70, and the Nasdaq Composite index slipped 32.62 points, or 1.35%, to 2,384.36.
Back home, fears of more losses from the US mortgage crisis globally hit domestic bourses yesterday, 19 August 2008. The BSE 30-share Sensex lost 101.93 points or 0.7% to 14,543.73 and the S&P CNX Nifty was down 24.8 points or 0.56% to 4,368.25, on that day.
The BSE Sensex is down 5,743.26 points or 28.31% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,663.04 points or 31.41% away from its all-time high of 21,206.77 struck on 10 January 2008.
Foreign institutional investors (FIIs) were net equity sellers worth Rs 716.35 crore while mutual funds purchased shares worth Rs 14.56 crore on Tuesday, 19 August 2008, according to provisional data on NSE.
FIIs were net sellers of Rs 974.84 crore in the futures & options segment on Tuesday, 19 August 2008. They were net sellers of index futures to the tune of Rs 1188.29 crore and purchased index options worth Rs 504.66 crore. They were net sellers of stock futures to the tune of Rs 328.63 crore and bought stock options worth Rs 37.43 crore.
Daily Call - Aug 20 2008
The US markets have yielded further ground on higher producer price index and the Asian markets are mixed. However, given the support that came in the last hour of trading, I expect the markets to take into stride any selling that may happen during early trade. Tuesday’s resurgence from the lows came on the back of Reliance and the market heavy weight may lead the pack today as well.
PSU oil firms could do well if their proposal to sell Diesel at differential rates to industrial and retail consumers is accepted. Reliance could also benefit if the Government allows it sell Diesel in the domestic space even after paying custom duty on crude and excise on Diesel. Fertiliser and Sugar stocks are also expected to do well.
US Market remains subdued
Inflation data, oil and financials hammer stocks
Stocks at Wall Street ended lower on Tuesday, 19 August, 2008. Stocks continued to be hurt due to the credit crisis situation in the financial sector, drop in quarterly earnings from a couple of retailers and a batch of economic reports that were against investor sentiments. Crude prices rising by more than 2% today also took a toll on stocks at Wall Street. Eight of the ten sectors ended in the red today.
Though market opened modestly lower in the morning, the inflation data followed by the bleak housing report dragged market further lower. The Dow Jones industrial Average ended the day with a loss of 130.84 points at 11,348.55. The Nasdaq Composite Index, finished lower by 32.62 points at 2,384.66. S&P 500 finished lower by 11.91 points at 1,266.69.
Twenty six of thirty Dow components ended in the red led by AIG, Bank of America and American Express. AIG dropped more than 6% on reports that the company might have to raise more capital.
The Labor Department reported today that U.S. producer prices rose by a bigger-than-expected 1.2% in July. It was driven higher by prices for energy, food and other products. Market was looking for an increase of 0.3% in July. Excluding food and energy, producer prices rose 0.7% in the month, which was also higher than expected. In July, energy prices rose 3.1% and food prices climbed by 0.3%.
The report hit the wires just before Wall Street opened in the morning. It fuelled a sell-off among stocks and the Dow Jones Industrial Average slipped by almost 100 points within an hour after market opened.
Also, the Commerce Department reported today that the number of new homes starting construction in July has sharply dropped. The number of new single-family permits dropped to the lowest level in 26 years. Builders are cutting back their production of new homes and trying to work off unsold inventory. Rising foreclosures on existing homes are complicating the builders' efforts to bring supply back down to meet sluggish demand. Housing starts fell 11% to a seasonally adjusted annual rate of 965,000 in July, 2008.It marked the lowest level for housing starts in 17 years. June's starts were revised higher to a 1.084 million annual pace. Housing starts are down 29.6% in the past year.
Among earning news, Home Depot stock slipped almost 4% after the company reported drop in second quarter profit. Target too reported y-o-y drop in quarterly earnings but still met investor expectations.
Barring HDFC Bank and ICICI Bank, all the Indian ADRs ended in the red today. Satyam was the biggest loser shedding 3.2%. HDFC Bank and ICICI Bank marginally gained 0.1% and 0.01% respectively.
At the crude market on Tuesday, crude oil rose more than $1 a barrel as a weakening dollar prompted investors to purchase commodities as an inflation hedge. Crude oil for September delivery rose $1.66 (1.5%) to settle at $114.53 a barrel.
At the currency markets on Tuesday, the dollar index, which tracks the greenback against a trade-weighted basket of six major currencies, was at 76.74, down from 77.070. It climbed as high as 77.41 earlier. The dollar weakened in the face of weak economic data.
Trading volumes remained light, with 1 billion shares exchanging hands on the New York Stock Exchange and 712 million shares trading on the Nasdaq stock market.
For tomorrow, the day is quite light in terms of economic reports and earning reports. The weekly crude inventory report from the Energy Department is the main and only economic report expected for the day.
Bullion metals rise for second straight day
Weak dollar and rising crude help precious metals rise
Gold and silver prices rose for second straight day on Tuesday, 19 August, 2008. prices rose after crude prices went up after a long time and the dollar weakened against its rivals. Traders were back in buying spree after prices fell to new lows last week. Barring these two days, and one day in between, gold and silver prices had registered losses in all the trading sessions in the current month of August, 2008. Silver prices also rose for the day.
Today, Comex Gold for December delivery rose $11.1 (1.4%) to close at $816.8 ounce on the New York Mercantile Exchange. It fell to an intra day low price of $792 earlier. Last week, the yellow metal gave up 8.4%. With today’s gain, it has lost 11.3% in August, 2008 till date. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (20.6%) since then.
This year, gold prices have lost 2.5% till date as the dollar rallied against the euro. It has lost almost $105 in August till now. Gold ended July, 2008 lower by $11 (1.1%).
Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. It ended June, 2008 with a gain of 4.1%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, in 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 Tuesday, Comex silver futures for September delivery rose 0.5 cents (0.05%) to $13.22 an ounce. Earlier, it fell to $12.52/ounce. With today’s rise silver has lost almost 11% in 2008 till date. Last week, it gave up 16.4%. It ended July 2008 with a gain of 3%. For the second quarter, it had gained a paltry 1.4%. Silver had gained 16% in Q1. The metal also had gained for seven straight years.
Gold and silver prices have dropped 22% and 38% from their all time highs that they reached earlier this year.
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. 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 and vice versa.
At the currency markets on Tuesday, the dollar index, which tracks the greenback against a trade-weighted basket of six major currencies, was at 76.74, down from 77.070. It climbed as high as 77.41 earlier. The dollar weakened in the face of weak economic data.
In economic news on Tuesday, the Labor Department reported that U.S. producer prices rose by a bigger-than-expected 1.2% in July. It was driven higher by prices for energy, food and other products. Market was looking for an increase of 0.3% in July. Excluding food and energy, producer prices rose 0.7% in the month, which was also higher than expected. In July, energy prices rose 3.1% and food prices climbed by 0.3%.
Also, the Commerce Department reported today that the number of new homes starting construction in July has sharply dropped. The number of new single-family permits dropped to the lowest level in 26 years. Builders are cutting back their production of new homes and trying to work off unsold inventory. Rising foreclosures on existing homes are complicating the builders' efforts to bring supply back down to meet sluggish demand. Housing starts fell 11% to a seasonally adjusted annual rate of 965,000 in July, 2008.It marked the lowest level for housing starts in 17 years. June's starts were revised higher to a 1.084 million annual pace. Housing starts are down 29.6% in the past year.
At the crude market on Tuesday, crude oil rose more than $1 a barrel as a weakening dollar prompted investors to purchase commodities as an inflation hedge. Crude oil for September delivery rose $1.66 (1.5%) to settle at $114.53 a barrel.
Earlier this year, the weakening dollar and higher global demand for raw materials had led to records this year for commodities including gold. Gold reached a record in March as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. The Federal Reserve halted cuts to its target bank lending rate in April, after slicing it in seven steps to 2% from 5.25% in September.
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. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for October delivery closed higher by Rs 157 (1.4%) at Rs 11,663 per 10 grams. Prices rose to a high of Rs 11,744 per 10 grams and fell to a low of Rs 11,276 per 10 grams during the day’s trading.
At the MCX, silver prices for September delivery closed Rs 240 (1.2%) higher at Rs 20,085/Kg. Prices opened at Rs 19,760/kg and rose to a high of Rs 20,339/Kg during the day’s trading.
Crude prices rise more than a dollar
Weak dollar and forecast regarding decline in weekly inventory perk up prices
Crude oil prices rose on Tuesday, 19 August, 2008 at Nymex as the dollar weakened against its rivals. Crude oil rose more than $1 a barrel as a weakening dollar prompted investors to purchase commodities as an inflation hedge. Oil also gained on forecasts a government report tomorrow will show a fourth weekly decline in U.S. gasoline stockpiles. Also providing support to crude price was the ongoing conflict between Russia and Georgia.
Crude-oil futures for light sweet crude for September delivery closed at $114.53/barrel (higher by 1.66 or 1.5%) on the New York Mercantile Exchange. Last week, crude prices ended lower by 1.2%. Before that crude lost $15.92 (11%) in July, 2008, the biggest ever in dollars. Prices are 59% higher than a year ago. Prices reached a high of $147 on 11 July but have dropped 21.5% since then.
At the currency markets on Tuesday, the dollar index, which tracks the greenback against a trade-weighted basket of six major currencies, was at 76.74, down from 77.070. It climbed as high as 77.41 earlier. The dollar weakened in the face of weak economic data.
In a monthly oil report issued last week, the Organization of the Petroleum Exporting Countries (OPEC) said that oil demand has been "badly hurt" this summer by the slowing economy and high oil prices. Transport and industrial fuels declined the most, sending USA’s total oil demand down by 3.8%, or 0.8 million barrels per day in the first seven months of the year.
Crude prices had 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%. For the year, crude is up by 16.5% till date.
Brent crude oil for October settlement rose $1.31 (1.2%) o close at $113.25 a barrel.
Against this background, September reformulated gasoline added 4.9 cents to close at $2.8639 a gallon, and September heating oil climbed 3.9 cents to finish at $3.1237 a gallon.
- Natural gas in New York advanced as lower prices for the heating and industrial fuel attracted buyers and on forecasts Tropical Storm Fay could enter the Gulf of Mexico, threatening production. Natural gas for September delivery rose 8.8 cents (1.1%) to settle at $7.976 per million British thermal units.
At the MCX, crude oil for August delivery closed at Rs 4,989/barrel, higher by Rs 37 (0.74%) against previous day’s close. Natural gas for August delivery closed at Rs 344.4/mmbtu, lower by Rs 3.9/mmbtu (1.1%).
Trading Calls - Aug 20 2008
Nifty (4368) Sup 4320 Res 4440
Buy Tech Mahindra (762)
SL 755 Target 775, 780
Buy Gujarat Alkali (171)
SL 167 Target 179, 180
Buy Bongaigaon (69)
SL 66 Target 74, 76
Sell Sesa Goa (166)
SL 170 Target 158, 156
Sell Crompton Greaves (254)
SL 258 Target 244, 242
Take your time!
Anywhere is walking distance, if you've got the time.
Although the market continued its recent slide into a fifth successive day, the late spurt could spell some hope for the bulls. Take your time in getting in. At the same time, be quick to make your exits when profits are on your side. Markets in Asia have bounced back despite another triple-digit fall in the Dow overnight and steep losses in European markets. That’s encouraging. A bounce back does look to be a remote possibility today after five straight days of decline. As always, it remains to be seen whether the same will be sustained for long.
On the whole, the market is likely to remain sideways and rangebound, as it tries to break free. Persistent concerns over the western financial sector, coupled with fears of recession in key economies and local economic worries will continue to check gains. What may also be disconcerting is that the FIIs remain net sellers. Adopt a cautious approach and remain stock specific.
FIIs were net sellers to the tune of Rs7.16bn (provisional) in the cash segment on Tuesday. Local institutions were net buyers of Rs145.6mn. In the F&O segment, the foreign funds were net sellers of Rs9.75bn.
HEG could gain as the company's Board has approved a share buy back at up to Rs350 per share. ABG Shipyard might attract attention as it is planning a new shipyard in Gujarat to meet growing demand. Kirloskar Electric could rise amid reports of an acquisition.
Dishman Pharma is another stock to watch out for as it is reportedly close to signing contracts with US- based Merck and AstraZeneca for supplying bulk drugs. Jindal Steel may also be in focus as it is reportedly close to acquiring a state-owned coal mine in Mozambique.
Idea Cellular could hog the limelight as it is set to announce its much-delayed entry into the lucrative Mumbai circle.
Asian markets have rebounded after a weak opening. Hong Kong's Hang Seng Index rose 1.4% to 20,765.83 while the Shanghai Composite extended its gains, and was last up 4% at 2,437.30. The Nikkei in Tokyo was last down only 0.3% at 12,828.
US stocks continued their southward journey. Oil prices rose, retailers' earnings fell short of expectations and government reports showed that homebuilding activity remains under pressure while inflation is on the rise. A weaker dollar and more worries surrounding the financial sector dampened the mood.
The S&P 500 lost 11.91 points, or 0.9%, to 1,266.69. The Dow Jones Industrial Average declined 130.84 points, or 1.1%, to 11,348.55. The Nasdaq Composite Index slipped 32.62 points, or 1.4%, to 2,384.36.
Market breadth was negative though trading volume remained light. More than three stocks dropped for each that rose on the New York Stock Exchange.
Financial shares led the way down among the Dow's blue chips. But declines were broad based, with 25 out of 30 Dow components ending lower.
Concerns about the health of the housing sector and the ongoing credit crisis escalated amid reports that the US government may have to bail out mortgage giants Fannie Mae and Freddie Mac.
The Wall Street Journal reported that Lehman Brothers has approached a number of potential bidders about selling part of its investment management business. Its shares slid over 13%. Another report said the Wall Street firm will report bigger writedowns than originally thought. JP Morgan forecasts it at about $4bn.
A variety of retail chain stores issued downbeat results, as consumers continued to cut back spending amid a slowing economy. Home Depot shares fell 3.7% after the home improvement retailer reported a profit drop for the second quarter.
Both housing starts and building permits - a measure of builder confidence - fell in July to levels not seen since the 1991 recession as the housing market fallout continued.
The Producer Price Index (PPI), a measure of inflation at the wholesale level, rose 1.2% in July, double what economists were expecting.
Crude oil futures also reversed course to finish higher, adding to existing pressure on consumer-related stocks. Crude for September delivery gained $1.66, or 1.5%, to end at $114.53 a barrel in New York. Oil prices had ended the previous session at a 3-1/2 month low.
Meanwhile, the dollar continued to edge slightly lower. The dollar fell against the euro and the yen. In the bond market, Treasury prices fell, lifting the yield on the benchmark 10-year note to 3.84% from 3.81%. COMEX gold for October delivery rose $11.20 to $813 an ounce.
After the close, Hewlett-Packard reported higher quarterly sales and earnings that topped forecasts, sending the stock 1% higher in extended-hours trading. The company also forecast that fiscal fourth-quarter earnings would top current forecasts.
Wednesday brings little in the way of quarterly earnings or economic reports. The weekly oil inventories report will also be in focus.
Financials led a sharp drop in European stocks. The pan-European Dow Jones Stoxx 600 index dropped 2.5% to 279.71, finishing at its worst levels in two weeks. UK's FTSE 100 dropped 2.4% to 5,320.40, while Germany's DAX 30 lost 2.3% to 6,282.43 and the French CAC-40 fell 2.6% to 4,332.79.
An ex-chief economist of the International Monetary Fund (IMF) predicted that a major bank may go bankrupt in the next few months.
In the emerging markets, Brazil's Bovespa rose 0.6% to 53,638 while Mexico's IPC shed 0. 2% to 26,732. The RTS index in Russia plunged 5.2% to 1685 and the ISE National-30 index in Turkey was down 3.6% at 50,064.
Market may extend losses
Indian markets extended losses to fifth straight trading session on Tuesday. Markets traded in the red throughout the day on the back of sustained selling and weak global cues.
However, key indices staged a strong comeback in the last hour of the trading session led by gains in the Banking, Power and Pharma stocks. Finally, the benchmark Sensex slipped 101 points to close at 14,543 and Nifty ended 24 points lower to close at 4,368.
Air Deccan surged by over 3.5% to Rs87 after media reports stated that the company would launch international operations and are launching 7 flights from Bangalore to London. The scrip touched an intra-day high of Rs88 and a low of Rs82 and recorded volumes of over 2,00,000 shares on BSE.
Asian Oilfield slipped 3.2% to Rs124. The company announced AOSL Petroleum PTE Ltd, its 100% subsidiary in Singapore has made an investment into Ensearch Petroleum Ltd. The scrip touched an intra-day high of Rs133 and a low of Rs122 and recorded volumes of over 14,000 shares on BSE.
Unichem Laboratories declined 1.5% to Rs191. The company announced that it received approval from US Food & Drug Administration (FDA) for Hydrochlorothiazide tablets in the strengths of 25 mg and 50 mg. The scrip touched an intra-day high of Rs197 and a low of Rs190 and recorded volumes of over 12,000 shares on BSE.
Balaji Telefilms ended 2% lower at Rs169. The company announced that the board of directors of the company approved execution of an agreement by the company with Star Group, Asian Broadcasting FZ-LLC., and the promoters of the Company, Mr. Jeetendra Kapoor, Ms. Shobha Kapoor, Ms. Ekta Kapoor and Mr. Tusshar Kapoor whereby the parties have agreed to terminate in the manner specified in the agreement, the various agreements entered into between the parties inter-se in August 2004 in relation to the acquisition by ABF of a total of 25.99% of the share capital in the company.
The Promoters are entitled to purchase, on their own account and / or through third, party(ies) nominated by them, the entire shareholding held by ABF in the company for an average price of Rs190/- per share, within, a period not exceeding 240 days. The scrip touched an intra-day high of Rs184 and a low of Rs167 and recorded volumes of over 13,00,000 shares on BSE.
IVRCL Infrastructures declined by 3% to Rs318. The company announced that it secured Pranahitha-Chevella Lift Irrigation Project worth Rs7.15bn - Package No.9 work in Karimnagar District, Andhra Pradesh involving "Investigation, Designs and execution of Lift Irrigation Scheme for drawal and lifting of 6.00 TMC of water in 120 days from Mid Manair Reservoir to Upper Manair Reservoir in Karimnagar District by water conveyor system on EPC Turnkey Basis".
The scrip touched an intra-day high of Rs331 and a low of Rs316 and recorded volumes of over 2,00,000 shares on BSE.
Shares of Adhunik Metaliks ended marginally higher by 0.5% to Rs119 after media reports stated that the company would raise Rs2.5-Rs3.5bn via IPO of its mineral arm. The scrip touched an intra-day high of Rs123 and a low of Rs118 and recorded volumes of over 2,00,000 shares on BSE.
Shares of McNally Bharat surged by over 4% to Rs130 after the company announced that it received Orders in the Products Division
First order is from Siemens VAI, Kolkata for Structural Fabrication at SAIL Plant at Burnpur valued at Rs377.8mn. Followed by another order from Brahmani River Pallets Ltd, Bhubaneswar for 1 no. Rod Mill and 2 nos. Ball Mills valued at Rs154.7mn. The scrip touched an intra-day high of Rs132 and a low of Rs121 and recorded volumes of over 21,000 shares on BSE.
ICICI Bank enters into a US$250mn agreement with Export Import Bank of United States to finance capital goods import of Indian companies from US.
Government is considering a proposal to declare Reliance Industries’ sales of fuel domestically as deemed exports. (BS)
BHEL plans to build forging units for nuclear power plants. (DNA)
Power ministry blames BHEL for delay in commissioning of power projects. (ET)
Jindal Steel and Power is close to acquiring a state-owned coal mine in Mozambique for Rs2-2.5bn. (ET)
RCom launches DTH service Big TV. (ET)
Hero Honda hiked prices of vehicles across models by up to Rs1,500. (FE)
L&T is close to buying equity stake in coal mines in Australia and Indonesia. (BL)
IVRCL Infra gets an irrigation project from Andhra Pradesh worth Rs7.15bn. (BS)
IOC, BPCL and HPCL may report losses worth Rs58bn, Rs70bn and Rs55bn in FY09 respectively. (BS)
Indiabulls Financial Services set to sell 35% stake in Comex to HDFC Bank, Yes Bank and India Potash. (BS)
PNB is exiting its mutual fund and primary dealership business. (BS)
Dr Reddy’s Lab is set to hive off its skin care business into a new entity called Promius Pharma. (DNA)
Aban Offshore sees US$1.65bn revenues in three years. (DNA)
Allahabad Bank hikes deposit rates by 25bps. (FE)
Oil India plans an IPO in November. (Mint)
General Atlantic may buy around 20% stake in Wockhardt Hospitals. (ET)
Opto Circuits acquires US based Criticare Systems, a non invasive medical device manufacturer for US$70mn. (ET)
Opto Circuits is looking to 2-3 healthcare diagnostics companies in US and Europe. (FE)
Lupin Labs inks marketing deal with US based Forest Labs for its Aerochamber line of products. (ET)
ITC Infotech acquires US based firm Pyxix Solutions for US$25mn in an all cash deal. (ET)
Spanco Telesystems bags Rs700mn contract from Orissa Government for setting up state wide area network. (ET)
Balaji Telefilms has agreed to terminate its agreement with STAR Group. (ET)
Kirloskar Electric is set to buy Germany’s Lloyd Dynamowerke & Co, in a deal estimate to be around US$70mn. (ET)
ABG Shipyard to set up a greenfield shipyard in south Gujarat with an investment of Rs12bn. (ET)
Deccan Aviation gets government nod to fly abroad. (BS)
Adhunik Metalik’s subsidiary, Orissa Manganese and Minerals to raise Rs3bn via IPO. (BS)
Unichem Labs gets approval from USFDA for blood pressure tablets Hydrochlorothiazide. (BS)
GMR Energy plans to offload 5-10% in its energy business to raise Rs26bn. (BS)
Bajaj Electricals to hike product prices in September. (BS)
Dishman Pharma is close to signing contracts with US based Merck and Astrazeneca for supplying bulk drugs. (DNA)
Mcnally Bharat gets two orders worth Rs532mn. (DNA)
Economy Front page
Government may charge higher diesel prices for industrial users. (ET)
Government has decided to control export of sugar by reintroducing the release order mechanism from October and is also planning to withdraw subsidy on export. (ET)
Fertilizer industry seeks cash subsidy from the government. (BS)
UP government to challenge high court order on sugarcane price. (BS)
Today's Pick - Balrampur Chini Mills
We recommend a buy in Balrampur Chini Mills from a short-term horizon. It is evident from the charts that the stock has been on a medium-term up trend from its early July trough at Rs 68, forming higher peaks and higher troughs. While trending up, the stock crossed over the 21 and 50-day moving averages. Also it penetrated the intermediate-term down trendline, which was in place since January high of Rs 127.
Moreover, the stock conclusively closed above its 200-day moving average by jumping up almost 8 per cent on August 19. We notice good volume during the up move. The daily relative strength index (RSI) has re-entered into the bullish zone, reinforcing bullishness and the weekly RSI is likely to enter this zone.
We are positive on the stock in the short-term. We anticipate the stock to rally further until it hits our price target of Rs 107 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 91.
Reliance Communications launches BIG TV
Reliance Big TV, a wholly owned subsidiary of Reliance Communications announced on Tuesday, August 19 the launch of India`s first fully digital home entertainment service on world`s most advanced MPEG4 Direct-To-Home (DTH) platform.
BIG TV DTH would initially offer over 200 channels with digital quality picture and sound. This service would be available in over 10 million outlets across 6,500 towns thus making it country`s largest retail rollout of a home entertainment product and service.
At the time of launch, BIG TV`s Fully Digital Home Entertainment Service would be available starting at Rs 1,490 which would include 3 month complimentary subscription. BIG TV also offers multiple price points and packages suiting the needs of all customer segments.
On this launch, Anil Dhirubhai Ambani, Chairman, Reliance ADA Group, said, ``The huge potential of a quality and value offering in the Home Entertainment Service market offers us a unique opportunity to tap the strengths and synergies of telecommunications and entertainment sectors embedded within Reliance ADA Group. With the launch of BIG TV DTH, we aim to offer a unique viewing experience in millions of Indian homes, further accelerate the growth momentum and enhance value for many million shareholders of Reliance Communications.``
BIG TV DTH Service, has set up a Call Center capacity capable of handling over 50,000 calls daily, in 11 Indian languages including English, across two locations to enable high-quality and speedy response to all customer queries.
Sanjay Behl, Group Head – Brand & Marketing, Reliance Communications, said, ``BIG TV launch will mark the shift of TV content control from broadcaster to customer hands and define the future of TV viewing in India.``
Shares of RCom declined Rs 12.6, or 3.06%, to settle at Rs 399.8. The total volume of shares traded was 2,234,666 at the BSE (Tuesday).
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