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Tuesday, September 16, 2008
Banking shares recover
Banking shares recovered sharply on expectations that the meltdown in US market may prompt US Federal Reserve to cut interest rate to 1.75% from 2%.
BSE's banking sector index Bankex outperformed the Sensex, rising 0.72% at 6,840.60. The index recovered from a low of 6,503.21. The BSE Sensex was down 54.38 points, or 0.43%, to 13472.66.
Canara Bank (up 6.77% at Rs 217), Axis Bank (up 6.35% at Rs 699), Indian Overseas Bank (up 6.24% at Rs 100.50), State Bank of India (up 4.76% at Rs 1,559.70), and HDFC Bank (2.76% at Rs 1,237.25), spurted.
India's largest private sector bank by assets ICICI Bank was down 6.43% at Rs 587.55 on reports the bank may have about $200 million in losses tied to the credit market turmoil.
According to reports, there is a three-in-four chance the Fed will cut the benchmark fed funds rate in order to spur the US economy struggling under credit market turmoil on top of a slumping real estate market, lower domestic demand and rising unemployment. US Federal Reserve will hold a regular policy meeting later today, 16 September 2008.
The BSE bankex had outperformed the market over the past one month till 15 September 2008, falling 1.61% compared to the Sensex’s 8.10% fall. It had also outperformed the market in the past one quarter, falling 3.74% compared to Sensex’s 10.92% fall.
Rupee falls to nearly 47
Ends at 46.89/90
Rupee posted its biggest fall in a decade on Tuesday, hit by risk aversion and banks arbitraging a weaker offshore rate, although suspected RBI intervention stopped the slide just short of 47 per dollar.
Rupee ended at 46.89/90 per dollar, off a trough of 46.99 which was its lowest since July 24, 2006
Nifty September 2008 futures at premium
Turnover declines
Nifty September 2008 futures were at 4098.10, at a premium of 23.20 points as compared to spot closing of 4074.90. NSE's futures & options (F&O) segment turnover was Rs 56,509.60 crore, which was lower than Rs 61,185.99 crore on Monday, 15 September 2008.
Reliance Infrastructure September 2008 futures were at premium at 855 compared to the spot closing of 843.35.
ICICI Bank September 2008 futures were at premium at 597.70 compared to the spot closing of 591.65.
State Bank of India September 2008 futures were at premium at 1582.70 compared to the spot closing of 1580.75.
In the cash market, the S&P CNX Nifty rose 2 points or 0.05% at 4074.90.
Asian Markets End Sharply Lower
Kospi, Hang Seng, Nikkei Plunge By More Than 5%
The stock markets across the Asian region closed sharply lower, with South Korea's KOSPI plunging 6 per cent, Hong Kong's Hang Seng plummeting 5.4 per cent and Japan's Nikkei 225 index tumbling 5 per cent. However, the stock market in Indonesia pared early losses and moved into positive terrain.
Wall Street fell overnight after Lehman filed for bankruptcy protection and bank of America agreed to buy Merrill Lynch. Crude oil prices continued to fall Tuesday as investors dumped oil. In late Asian trade, oil was quoted at $92.78 a barrel.
On the currency front, the dollar fell to the upper 103-yen levels in late Tokyo deals from the mid 104-yen range in early trade and mid 107-yen range late Friday.
The South Korean won fell to its lowest level against the U.S. dollar since 2004. The local unit closed the session at a 49-month low of 1,160.0 a dollar, down 50.9 from Friday's close of 1,109.1 a dollar.
The Australian dollar shed 2.81 U.S. cents, closing at its lowest level since August 17, 2007, when it finished the local session at US$0.7741-0.7747. The Aussie finished Tuesday's session at US$0.7886-0.7890, down from Monday's close of US$0.8167-0.8171.
The Kiwi was sold-off as investors shied away from riskier currencies following the turmoil in the financial sector. In late local trade, the New Zealand dollar was quoted at US$0.6505, down from Monday's close of US$0.6687.
Coming back in equities, the Japanese stock market closed sharply lower, reversing Friday's gains. The market remained closed on Monday due to a public holiday. Banks and insurers fell sharply also due to growing concerns over American International Group's financial standing. The benchmark Nikkei 225 index closed down 605.04 points or 4.95% at its lowest level since July 8, 2005 of 11,609.72. The broader Topix index lost 59.63 points or 5.1% to finish at 1,117.57.
On the economic front, Tokyo condominiums for sale declined by an annual 38.8% in August compared to the previous month's 44.5% decrease, according to data released by the Japanese Real Estate Economic Research Institute. In August, there were 10,504 unsold units on the Tokyo market, a fall from July's 10,885.
Meanwhile, Japan's consumer confidence dropped to a new record low of 30.1 in August from 31.4 in July, results of the latest survey by the Cabinet Office showed. The reading fell for the fifth month in a row. The report said the headline index along with the sub-indices of overall livelihood, income growth and the willingness to buy durable goods were the lowest since June 1982.
The Chinese market closed sharply lower, led by banks, with the benchmark Shanghai Composite Index finishing below the 2,000 mark. The key index closed down 93.04 points or 4.47% at 1,986.64, its weakest close since November 17, 2006. The Shenzhen composite index decreased by 1.39% to 570.74.
Worries over interest spreads, after the People's Bank of China cut the benchmark one-year lending rate by 27 basis points to 7.20% effective today, also hurt investor sentiment. It was the first reduction in China's key interest rate since February 2002.
The central bank also announced that the commercial bank reserve requirement will be cut by one percentage point to 16.5% from September 25, but the cut will not apply to China's four big lenders, Bank of Communications and the postal savings bank.
In Hong Kong, the Hang Seng Index went down by 5.44% at 18,300.61, while the Hang Seng China Enterprises Index plunged by 7.4% to 9,236.58.
The Australian stock market closed lower, extending losses for the second straight trading session. The market started off sharply lower, but clawed back some ground as bargain hunting among major banks and resources stocks emerged in late trade.
The benchmark S&P/ASX 200 index closed down 66.9 points or 1.4% at a two and a half year low of 4,750.8 after falling as much as 2.7% to its lowest level since December 2005 in early trade. Meanwhile, the broader All Ordinaries index lost 75.2 points or 1.5% to finish at 4,799.8.
On the economic front, the minutes of the September 2 RBA Monetary Policy Committee meeting released today showed that the Board felt a general slowdown in demand was unfolding. According to the central bank, the opposing forces of weak consumption and strong investment were visible, affecting the nation's economy when it reversed its tight money policy this month. The meeting concluded with a 25 basis point reduction in the benchmark interest rate to 7.00%.
The New Zealand stock market closed sharply lower, extending losses for the second consecutive trading session. The benchmark NZX 50 index plunged 92.60 points or 2.87%, following Monday's 1.26% fall, as investors dumped stocks on concerns about the turmoil in the U.S. financial sector. The broader NZX All Capital index lost 96.91 points or 2.98% to finish at 3,255.90.
The South Korean market closed sharply lower, reversing Friday's sharp gains. The market remained closed on account of a public holiday on Monday. The benchmark Korea Composite Stock Price Index or KOSPI plunged 90.17 points, or 6.1%, to finish the session at 1,387.75.
Earlier in the day, the Financial Services Commission, South Korea's financial regulator, said it banned the two Lehman units in Seoul from selling their assets and repaying debts until 15 December.
On the economic front, South Korea's import price growth, in local currency terms, eased to an annual 42.6% in August, a report issued by the Bank of Korea showed. Import price growth eased from July's 50.6% increase, which was the largest annual growth since February 1998. On a monthly basis, import prices dropped 4.4% in August on lower oil prices. Further, the central bank report revealed that export prices grew 21.9% on a yearly basis, while it declined 1.4% month-on-month.
In India, frenzied buying in index pivotals coupled with short covering after five straight days of fall helped key benchmark indices erase sharp early losses and post marginal gains in highly choppy session. Higher Dow & Nasdaq futures and crude oil at 7-month low also aided the rebound.
The BSE 30-share Sensex rose 19.40 points or 0.14% to 13,550.67 as per provisional closing. The Sensex opened with a downward gap of 479.54 at 13,051.73, also its day’s low. At the day’s high of 13,556.03 hit in late trade, the Sensex rose 24.31 points. The S&P CNX Nifty rose 11.60 points or 0.28% to 4,084.50 as per provisional closing. Nifty recovered from a low of 3919.35. At the day's low, Nifty had lost 153.55.
Elsewhere, Indonesia's Jakarta Composite index was up by 0.95% to 1,735.64; Singapore's Straits Times index was down by 1 % at 2,461.43; and Taiwan's Taiex dropped by 4.9% at 5,756.59.
In the other part of the world, European shares fell again, with financials under more pressure after U.S. insurance giant AIG was downgraded by ratings agency Standard & Poor's, although hopes for a U.S. interest rate cut kept shares off three-year lows.
Of national indexes, the U.K. FTSE 100 index fell 1.4% to 5,132.10, the German DAX 30 index lost 1% to 6,001.23 and the French CAC-40 index fell 0.6% to 4,145.97. However the market plunged further as the time passed. At 12.53 GMT U.K. FTSE 100 index hit a level not seen for three years, trading down 3.2% at 5,036.40. The last time the index traded at this level was in July 2005. The German DAX 30 index fell by 1.8% to 5,953.30, while the French CAC-40 index was down by 2% to 4,086.90.
On the economic front there was slue of economic data. Starting with German Inflation shown by the consumer price, which surged by 3.1% in August 2008 from a year earlier which is lower than July’s 3.3% figure. Core consumer prices excluding energy rose 1.9% on the year in August 2008.
In UK, the consumer price inflation remained more than 1% above the Bank of England's 2.0% target for the fourth straight month in August, forcing BOE Governor Mervyn King to write another letter of explanation to the treasury. The annual CPI rate rose to a fresh 16-year high of 4.7% in August – a 16 year high figure. Adding more concern was the core CPI, which excludes energy, food, alcoholic beverages and tobacco, rise more sharply, up 2.0% on the year after a 1.9% rise in July. The annual increase hasn't been higher since January 1997. At the same time the retail price index, which has historically been used as a guide for pay settlements, rose 4.8% in August, slowing from an increase of 5.0% in July. In monthly terms, the RPI rose 0.3%.
In a letter written to the government the Bank of England Governor Mervyn King said that the British inflation would peak soon near 5 percent but remain above the central bank's 2 % target well into next year, especially if sterling's fall is sustained. In an open letter to the government published after data showed inflation hit a 16-year high of 4.7 percent in August, King said the level of interest rates needed to get inflation back to target was "highly uncertain" and he expected to have to write several more such letters in the next year.
In the meantime, UK showed some heating on the inflationary front the regional indicator showed some sign of relief. The annual rate of euro-zone inflation eased in August as energy prices dropped sharply and food price growth slowed for the first time in over a year. The prices in the euro zone fell 0.1% on the month and rose 3.8% on the year in August.
Some other important data release the house prices in Britain fell 0.3 percent on a year ago in July after a 0.6% annual gains in June. Meanwhile Switzerland’s industrial production increased by 6.1% in August from a year earlier while the industrial orders increased by 11.5% during the same time period.
Looking ahead the day is scheduled to release some of the most awaited economic events. The day is left with the data on US inflation, which includes the consumer price index for the month of August. It will be followed by the net capital inflows as well as the total capital inflows for the month of July. To show the status of housing market we will eagerly await the NAHB housing price index for the month of August. Last but the least Fed will declare its interest rate decision.
BSE Bulk Deals to Watch - Sep 16 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
16/9/2008 519532 ASIAN TEA EX ENCA FINLEASE LTD. S 49000 75.30
16/9/2008 533016 AUSTRAL COKE OPG SECURITIES P LTD B 297661 239.80
16/9/2008 533016 AUSTRAL COKE OPG SECURITIES P LTD S 297661 239.65
16/9/2008 502355 BALKRISH IND ARISTOS MASTER FUND LTD B 400000 388.00
16/9/2008 502355 BALKRISH IND MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S.V. S 400000 388.00
16/9/2008 531335 CARN NUT ANA NATUBHAI HARIBHAI DESAI B 32200 107.31
16/9/2008 531335 CARN NUT ANA NITIN RAOJIBHAI DESAI B 31200 107.09
16/9/2008 531335 CARN NUT ANA SANJAY JASUBHAI DESAI B 31200 107.05
16/9/2008 532959 GAMMON INFRA ABN AMRO BANK N V LONDON B 934513 74.00
16/9/2008 532959 GAMMON INFRA MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S.V. S 934513 74.00
16/9/2008 531439 GOLDSTON TEC ANKIT RAJENDRA SANCHANIYA B 135000 117.33
16/9/2008 512219 INDUSVISTA ARIDHI HOLDINGS PVT LTD S 86900 25.35
16/9/2008 512219 INDUSVISTA ARIDHI INVESTMENTS CONSULTANT PVT LTD S 485000 25.35
16/9/2008 512219 INDUSVISTA APARNA PIPARIYA S 220584 25.35
16/9/2008 505840 JAIPAN INDUS VHM IMPEX PRIVATE LTD B 37505 159.95
16/9/2008 504269 KHAITAN ELCT CARWIN MERCANTILES PVT LTD B 100000 57.90
16/9/2008 504269 KHAITAN ELCT PACIFIC CORPORATE SERVICES LTD S 146885 57.61
16/9/2008 531269 KLG SYSTEL DEUTSCHI SECURITIES MAURITIUS LIMITED B 200151 316.50
16/9/2008 531269 KLG SYSTEL GRANTS INVESTMENT LIMITED FCCB S 200151 316.50
16/9/2008 531602 KOFF BR PICT PRAVIN D GALA B 65792 39.53
16/9/2008 531602 KOFF BR PICT PRAVIN D GALA S 46997 38.39
16/9/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD S 27720 39.29
16/9/2008 531528 MAARS SOFTWR S V ENTERPRISES B 1144131 3.73
16/9/2008 531528 MAARS SOFTWR S V ENTERPRISES S 1144131 3.75
16/9/2008 531092 OM MET INFRA DEUTSCHE SECURITIES MAURITIUS LIMITED S 1552500 21.00
16/9/2008 500322 PANYAM CEMEN CLSA MAURITIUS LIMITED B 250000 180.00
16/9/2008 500322 PANYAM CEMEN DEUTSCHE SECURITIES MAURITIUS LIMITED S 250000 180.00
16/9/2008 532606 PAREKH ALUM MANISH MARU B 120000 124.09
16/9/2008 532606 PAREKH ALUM RAJASTHAN GLOBAL SECURITIES LTD S 98739 124.95
16/9/2008 530695 PRIME PROPTY CHETAN KANTILAL MEHTA S 185907 60.22
16/9/2008 532675 PRITHVI INFO DEUTSCHE SECURITIES MAURITIUS LIMITED S 212462 86.63
16/9/2008 532675 PRITHVI INFO ECL FINANCE LIMITED S 122147 87.94
16/9/2008 522207 RASAND ENG I MACKERTICH CONSULTANCY SERVICESPVTLTD S 36000 57.50
16/9/2008 532972 SANKHYA INFO SRIDHAR NADUPALLI S 58400 85.06
16/9/2008 532972 SANKHYA INFO NPADMAJAJ S 65000 85.00
16/9/2008 532972 SANKHYA INFO INDIRA RAMANI NADUPALLI S 250000 85.57
16/9/2008 532886 SEL MANUF MBL AND COMPANY LIMITED B 95314 177.52
16/9/2008 532886 SEL MANUF OPG SECURITIES P LTD B 146360 188.13
16/9/2008 532886 SEL MANUF MBL AND COMPANY LIMITED S 95314 177.58
16/9/2008 532886 SEL MANUF OPG SECURITIES P LTD S 146360 188.06
16/9/2008 526049 SHRILAKSHMI JYOTIKABEN MAHESHBHAI HADWANI S 110000 80.32
16/9/2008 526365 SHYAM STAR MANUBHAI JIVANI S 38000 148.81
16/9/2008 502455 SIRPUR PAP CHHATAR MAL CHHAJER S 43009 52.79
16/9/2008 522229 TANEJ AERO A TREE LINE ASIA MASTER FD SING PTE L B 2350000 51.00
16/9/2008 522229 TANEJ AERO A MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S.V. S 2350000 51.00
NSE Bulk Deals to Watch - Sep 16 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
16-SEP-2008,AUSTRAL,Austral Coke & Projects L,AMBIT SECURITIES BROKING PVT. LTD.,BUY,163990,238.23,-
16-SEP-2008,CARBORUNIV,Carborundum Univ Ltd,NALANDA INDIA FUND LIMITED,BUY,4766392,125.00,-
16-SEP-2008,KHAITANELE,Khaitan Electricals Ltd,CARWIN MERCANTILES PVT LTD,BUY,100000,57.90,-
16-SEP-2008,MANGLMCEM,Mangalam Cement Ltd,SMIFS CAPITAL MARKETS LIMITED,BUY,150000,82.00,-
16-SEP-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,BUY,2812197,31.59,-
16-SEP-2008,NUTEK,Nu Tek India Limited,SHRI BRIJ SECURITIES PVT.LTD.,BUY,108317,128.34,-
16-SEP-2008,ORBITCORP,Orbit Corporation Limited,STAR WAR PROPERTIES PVT.LTD.,BUY,300000,234.08,-
16-SEP-2008,PRITHVI,Prithvi Information Solut,YUVAK SHARE TRADING PVT LTD,BUY,110585,86.39,-
16-SEP-2008,SELMCL,SEL Manufacturing Company,DKG SECURITIES PVT. LTD.,BUY,102147,185.54,-
16-SEP-2008,AUSTRAL,Austral Coke & Projects L,AMBIT SECURITIES BROKING PVT. LTD.,SELL,163990,238.31,-
16-SEP-2008,CARBORUNIV,Carborundum Univ Ltd,MERILL LYNCH CAPITAL MARKET ESPANA S.A. SVB,SELL,4766392,125.00,-
16-SEP-2008,KHAITANELE,Khaitan Electricals Ltd,PACIFIC CORPORATE SERVICES LTD,SELL,149420,57.60,-
16-SEP-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,SELL,2812197,31.59,-
16-SEP-2008,NUTEK,Nu Tek India Limited,SHRI BRIJ SECURITIES PVT.LTD.,SELL,108317,128.51,-
16-SEP-2008,ORBITCORP,Orbit Corporation Limited,EVERLONE TRADING PVT. LTD.,SELL,300000,234.08,-
16-SEP-2008,PIONEEREMB,Pioneer Embroideries Limi,MELCHIOR INDIAN OPPORTUNITIES FUND LIMITED,SELL,86200,27.43,-
16-SEP-2008,PRITHVI,Prithvi Information Solut,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,125000,87.11,-
16-SEP-2008,PRITHVI,Prithvi Information Solut,ECL FINANCE LIMITED,SELL,131145,88.78,-
16-SEP-2008,PRITHVI,Prithvi Information Solut,YUVAK SHARE TRADING PVT LTD,SELL,104732,86.39,-
16-SEP-2008,SELMCL,SEL Manufacturing Company,DKG SECURITIES PVT. LTD.,SELL,73120,189.96,-
Post Session Commentary - Sep 16 2008
Domestic markets took a sharp U turn and recovered smartly from the initial dip fall on expected cut in interest rate by US Federal Reserve to protect US financial system in its meeting scheduled today along with drop in crude oil below $92 a barrel and short covering during last trade to give up its initial losses and close on a flat note. Indian markets today opened on weak note for the second straight day on the back of unfavorable cues from the global markets that led strong round of selling in early trade. Further, markets continued to trade in negative territory without any sign of recovery but buying on battered heavyweights forced markets to rebound from its days low and end the day on flat note. The news that US finance major Lehman Brothers filed for bankruptcy protection and the uncertain health of other companies weighed heavily on the Indian bourses. From the sectoral front, most of the buying was seen in Oil & Gas and FMCG stocks along with Bank stocks who were in limelight ahead of Fed reserve meet scheduled today and expected to cut interest rate to protect US financial system. However, Metal, Reality, Consumer Durables, Capital Goods and Phama stocks remained out of favour as witnessed most of the selling from these baskets. Mid cap and Small cap stocks also remained unfavorable as lost more than 1%. The market breadth was negative as 1752 stocks closed in red while 886 stocks closed in green and 73 stocks remained unchanged.
On the global front Lehman Brothers had filed for bankruptcy protection in US. Along with that AIG is facing liquidity crunch and seeking $40 billion loan from Federal Reserve to raise capital. Further, Bank of America acquired Merill Lynch at a premium $29 per share.
The BSE Sensex closed lower by 12.47 points at 13,518.80, while NSE Nifty ended up by 2.00 points at 4,074.90. The BSE Mid Caps and Small Caps closed with losses of 71.34 points at 5,217.25 and by 91.06 points at 6,289.41. The BSE Sensex touched intraday high of 13,556.03 and intraday low of 13,051.73.
Losers from the BSE are ICICI Bank Ltd (5.82%), JP Associates (5.09%), Maruti Suzuki (3.55%), Ranbaxy Lab (3.23%), Satyam Computer (3.21%), Wipro Ltd (2.62%), Tata Steel (2.49%), DLF Ltd (2.31%), ACC Ltd (1.92%), Tata Power (1.69%) and TCS Ltd (1.61%).
Gainers from the BSE are SBI (6.49%), Sterlite In (2.66%), Reliance (2.35%), HDFC Bank Ltd (2.16%), ITC Ltd (2.16%), Tata Motors (2.00%), Bharti Airtel (1.21%) and BHEL (1.17%).
The BSE Metal index lost 214.35 points to close at 10,176.49. Major losers are NMDC Ltd (8.53%), Gujarat NRE C (8.40%), Sesa Goa Ltd (7.38%), Jindal Steel (6.30%), Hindustan Zinc (5.60%) and Jai Corp Ltd (3.50%).
The BSE Reality index plunged 170.56 points to close at 4,163.96. As Anant Raj (15.03%), Pheonix Mill (7.30%), Indiabull Real (6.49%), Mahindra Life (5.20%), Housing Development (4.97%) and Penland Ltd (4.57%) closed in negative territory.
The BSE Consumer Durables index ended down by 99.02 points at 3,338.22 Major losers are Rajesh Export (6.02%), Videocon Ind (5.24%), Gitanjali GE (3.90%) and Blue star L (2.48%).
The BSE Pharma index dropped by 88.61 points to close at 3,940.66. As Apollo Hos E (5.62%), Glenmark Pharma (4.82%), Dr Reddy’s Lab (4.20%), Sun Pharma (3.54%), Ranbaxy Lab (3.23%) and Opto Circuit (3.01%) closed in negative territory.
The BSE Oil & Gas index ended higher by 113.67 points at 8,928.13 as BPCL (4.07%), HPCL (3.56%), Reliance (2.35%), Essar Oil Ltd (2.08%), Reliance Pet (1.30%) and IOC Ltd (1.02%) ended in positive territory.
The BSE Bank index advanced 60.39 points to close at 6,852.41. Gainers are Canara Bank (7.06%), SBI (6.49%), Indian Overseas Bank (6.08%), Allahabad Bank (6.07%), Axis Bank (5.98%) and Union Bank (5.10%).
Bank shares lead intra-day rebound; Fed in focus
Buying in index pivotals coupled with short covering after five straight days of fall helped key benchmark indices erase sharp early losses and post marginal gains in highly choppy session. Higher Dow & Nasdaq and crude oil at 7-month low aided the rebound. The S&P CNX Nifty ended in green.
Index heavyweight Reliance Industries recovered sharply from 52-week low. Banking shares spurted on expectations that the meltdown in US market may prompt US Federal Reserve to cut interest rate to 1.75% from 2%. State Bank of India (SBI) advanced over 7%. However, ICICI bank cracked over 5% on high volumes. US Federal Reserve will hold a regular policy meeting later today, 16 September 2008.
Dow futures were up down 49 points while Nasdaq futures rose 4.25 points indicating higher opening of the US markets on Tuesday, 16 September 2008.
As per provisional data released by the stock exchanges after trading hours, foreign funds today, 16 September 2008, sold shares worth a net Rs 1303.41 crore. Domestic funds bought shares worth a net Rs 612.36 crore.
The BSE 30-share Sensex slipped 12.47 points or 0.09% at 13,518.80. The Sensex opened with a downward gap of 479.54 at 13,051.73, also its day’s low. At the day’s high of 13,556.03 hit in late trade, the Sensex rose 24.31 points.
The S&P CNX Nifty rose 2 points or 0.05%, to 4074.90. Nifty recovered from a low of 3919.35. At the day's low, Nifty had lost 153.55. Prior to today’s small gains, the Nifty had declined 407.40 points or 9.08% in five trading sessions from 4482.30 on 8 September 2008 to 4072.90 on 15 September 2008.
BSE Sensex has lost 1426.17 points or 9.54% in six trading sessions from a recent high of 14,944.97 on 8 September 2008. The barometer index is down 6768.19 points or 33.36% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 7687.97 points or 36.25% below its all-time high of 21,206.77 struck on 10 January 2008.
Nifty September 2008 futures were at 4098.10, at a premium of 23.20 points as compared to spot closing. NSE's futures & options (F&O) segment turnover was Rs 56,509.60 crore, which was lower than Rs 61,185.99 crore on Monday, 15 September 2008.
The market breadth was weak on BSE with 1725 shares declining as compared to 928 that rose. 71 remained unchanged. 19 shares from the 30-member Sensex pack declined.
The total turnover on BSE amounted to Rs 5919 crore as compared to Rs 4,485.30 crore on Monday, 15 September 2008.
The BSE Mid-Cap index slipped 71.34 points or 1.35% to 5,217.25 and BSE Small-Cap index lost 91.06 points or 1.43% to 6,289.41
India’s largest state run bank in terms of net assets State Bank of India galloped 7.44% to Rs 1599.60 on 13.94 lakh shares and was the top gainer from Sensex pack. The stock staged a massive recovery from early low of Rs 1432.60. As per reports, the bank paid 48% higher advance tax to Rs 1560 crore in Q2 September 2008 over Q2 September 2007.
However India's largest private sector bank in terms of net profit ICICI Bank plunged 5.23% to Rs 595.05 on 55.56 lakh shares on concerns it may incur losses tied to the US credit market turmoil. ICICI Bank said on Tuesday, 16 September 2008, it had exposure to 57 million euros ($81 million) of Lehman Brothers senior bonds, adding the potential losses were not material.
Mid-cap banking shares spurted on fresh buying. Allahabad Bank (up 6.91% to Rs 64.25), Bank of Baroda (up 6.34% to Rs 321.20), Bank of India (up 5.57% to Rs 290.20), Canara Bank (up 7.26% to Rs 218), Axis Bank (up 6.53% to Rs 700.20), surged. The Bankex rose 0.89% to 6,852.41.
India’s largest private sector firm in terms of market capitalization and oil refiner Reliance Industries gained 2.50% to Rs 1931.20 on 13.43 lakh shares. The stock rebounded sharply from a 52-week low of Rs 1800 in intra-day trade. Reliance Industries reportedly paid 5% higher advance tax at Rs 680 crore in Q2 September 2008 over Q2 September 2007.
Sterlite Industries (up 4.48% to Rs 486.15), HDFC Bank (up 2.16% to Rs 1230), and Bharat Heavy Electricals (up 1.95% to Rs 1660) edged higher from Sensex pack.
Telecom pivotals saw divergent trend in volatile trade. India’s largest cellular services provider by market capitalisation Bharti Airtel rose 0.71% to Rs 770.90. The stock oscillated in a band of Rs 728.55 and Rs 785.50
India’s second largest cellular services provider by market capitalisation Reliance Communications fell 0.26% to Rs 368. The stock oscillated in a band of Rs 350 and Rs 369.45
Most IT pivotals were under pressure. The BSE IT index lost 1.44% at 3,545.05. India’s fourth largest software services exporter Satyam Computer Services slumped 1.56% to Rs 362.40. The company said it has bagged a SAP implementation contract from Oman-based Khimji Ramdas LLC. The company made this announcement during trading hours on Monday, 15 September 2008.
Wipro (down 1.57% to Rs 396), and TCS (down 1.68% to Rs 749), slipped.
However India’s second largest software services exporter Infosys rose 0.35% to Rs 1579.90, after striking an intra-day low of Rs 1500.
Ranbaxy Laboratories, India’s top drug maker by sales fell 2.73% to Rs 408. The stock has been on sustained downtrend ever since the Japanese drug maker Daiichi Sankyo’s open offer to acquire an additional 20% stake at Rs 737 a share in the company ended on 4 September 2008.
Metal stocks declined as global metal prices extended losses on concerns turmoil in the global markets may slow the global economy, reducing demand for metals. The BSE Metal index lost 2.06%, to 10,176.49.
World's sixth largest steel maker Tata Steel fell 2.71% at Rs 486.45. The stock declined 18.86% in past one month and 40.57% in past three months till 15 September 2008.
Jindal Steel & Power fell 6.49% at Rs 1404.80. The stock declined 21.72% in past one month and 28.15% in past three months till 15 September 2008. Hindustan Zinc fell 5.63% at Rs 493. The stock declined 5.86% in past one month and 11.47% in past three months till 15 September 2008.
Sesa Goa lost 7.46% at Rs 119.70. The stock declined 26.34% in past one month and 31.03% in past three months till 15 September 2008. Steel Authority of India (Sail) fell 0.66% at Rs 136.20. The stock declined 4.74% in past one month and 14.48% in past three months till 15 September 2008.
Realty shares extended Monday’s, 15 September 2008 fall. The BSE Realty index lost 3.93%, to 4,163.96. DLF (down 1.76% to Rs 425), Unitech (down 1.53% to Rs 141.30), Indiabulls Real Estate (down 6.32% to Rs 223.80), Housing Development Infrastructure (down 4.46% to Rs 231.55), slumped.
Maruti Suzuki India (down 3.92% to Rs 695.05), DLF (down 1.76% to Rs 425), and Jaiprakash Associates (down 4.96% to Rs 140), edged lower from the Sensex pack.
State-run oil refiners gained after crude oil price declined further to a 7-month low. Indian Oil Corporation (up 0.94% at Rs 417.40), BPCL (up 3.76% at Rs 360.50), and HPCL (up 3.43% at Rs 248.50), rose. Crude oil prices plunged to a seven-month low as turmoil in the US financial system heightened concerns energy demand may slow. US light crude for October 2008 delivery fell $3.02 to $92.69 a barrel yesterday, 15 September 2008.
Among side counters, Hercules Hoists (up 20% to Rs 3040.30), IVP (up 15.44% to Rs 31.40), Simplex Castings (up 11.98% to Rs 52.80), and Century Enka (up 11.41% to Rs 103.95), surged.
Reliance Capital was the top traded counter on BSE with turnover of Rs 357.70 crore followed by ICICI Bank (Rs 324.85 crore), Bharti Airtel (Rs 258 crore), Reliance (Rs 253.40 crore) and HDFC (Rs 240 crore) in that order.
Reliance Natural Resources led the volume chart on BSE with volumes of 1.50 crore shares followed by IFCI (1.06 crore shares), Ispat Industries (70.50 lakh shares), Chambal Fertilisers (64.65 lakh shares) and GVK Power & Infrastructures (56 lakh shares) in that order.
KSK Energy Ventures surged 17.13% to Rs 202.05. The company said in a statement today, 16 September 2008, the shareholding of Lehman Brothers and its units in the company was locked in for a year. Lehman affiliates hold 28.41% in the company, which they had acquired as a part of a pre-initial public offer (IPO) transaction.
Usher Agro lost 10% at Rs 179.80 despite reports leading private equity firms such as Blackstone, TPG, Blue River Capital, Actis and Silk Route are eyeing more than a 40% stake in the company.
Mather & Platt Pumps was locked at upper limit of 20% to Rs 140.50 on BSE after the company said its promoter proposes voluntary delisting of the company from all the stock exchanges. The company made the announcement before market hours today, 16 September 2008.
Glodyne Technoserve advanced 6.67% to Rs 657.95 after it said it has secured an order worth Rs 284 crore from Bihar State Electronics Development Corporation for implementing National Rural Employment Guarantee Scheme in Bihar. The company made this announcement after trading hours on Monday, 15 September 2008.
US markets collapsed on Monday, 15 September 2008 falling the most since 11 September 2001 as investors worried about the impact of the latest twists in the credit crisis on the economy and the outlook for profits. On Monday, 15 September 2008, US investment bank Lehman Brothers filed for bankruptcy and Bank of America acquired Merrill Lynch. American insurer AIG was struggling for survival. The Dow Jones Industrial Average plunged 504.48 points, or 4.42%, to 10,917.51, the Nasdaq Composite index dropped 81.36 points, or 3.60%, to 2,179.91 and the Standard & Poor's 500 index fell 59 points, or 4.71% to 1,192.70.
European markets which opened after Indian markets were subdued. Key benchmark indices in UK, Germany and France were down by between 0.37% and 1.54%. Asian markets were trading weak today, 16 September 2008 as fears of a global financial crisis gripped investors across Asia. Key benchmark indices in China, Japan, Hong Kong, Taiwan, Singapore, and South Korea were down by between 1.01% and 6.10%.
AIG - India Holdings
AIA Engg AIG Global Investment Corporation 1.16 218000
AIA Engg AIG Global Investment Corporation 1.26 236526
AIA Engg AIG Global Investment Corporation 1.3 245005
Bharati Shipyard AIG Trustee Company India Pvt Ltd 1.19 314145
Bharati Shipyard Aig Trustee Company India Pvt Ltd 1.14 314145
Bharati Shipyard AIG Trustee Company P Ltd - AIG India Equity Fund 1.32 314145
Federal Bank AIG Global Investment Partners LP 1 1708472
Gayatri Projects AIG Trustee Company India Pvt Ltd 1.4 141109
Gayatri Projects AIG Trustee Company India Pvt Ltd 2.07 209609
Gokaldas Exports Aig Trustee Company India Pvt Ltd 1.05 361031
Gokaldas Exports Aig Trustee Company India Pvt Ltd 1.12 385504
Indo Tech AIG Global Investment Corpn Asia 2.12 225000
Ipca Labs. AIG Trustee Company India Pvt Ltd 2 500000
Ipca Labs. AIG Trustee Company India Pvt Ltd 1.4 350000
Kolte Patil Deve AIG Trustee Company India Pvt Ltd 1.06 800000
Mindtree Ltd AIG Offshore Systems Service Inc 3.27 1240167
Mindtree Ltd AIG Offshore Systems Service Inc 3.28 1240167
Mindtree Ltd AIG Offshore Systems Service Inc 3.33 1240167
NIIT Tech. AIG Global Investment Corp 1.7 665510
NIIT Tech. AIG Global Investment Corp 2.29 1346370
NIIT Tech. AIG Global Investment Corporation 1.5 588380
Nucleus Software AIG Global Investment Corporation 1.58 509864
Sun Pharma Advan AIG Global Investment Corporation Asia Ltd 1.17 2335496
Sun Pharma Advan AIG Global Investment Corporation Asia Ltd 1.81 3650141
Sun Pharma Advan AIG Global Investment Corporation Asia Ltd 2.39 4956986
Unity Infra AIG Global Investment Corporation (ASIA) 1.05 140000
More jitters for the market
Key benchmark indices are likely to edge lower for sixth running day today, 16 September 2008 mirroring mayhem in global markets triggered by fears of the state of the US financial system after Lehman Brothers filed for bankruptcy, insurer AIG struggled for survival and Merrill Lynch was sold to Bank of America. Reports of Morgan Stanley being the next target of financial crisis may further dampen the sentiment
Meanwhile, crude oil prices plunged to a seven-month low as turmoil in the US financial system heightened concerns energy demand may slow. US light crude for October 2008 delivery fell $3.02 to $92.69 a barrel yesterday, 15 September 2008.
As per reports, State Bank of India paid 50% higher advance tax to Rs 1560 crore in Q2 September 2008 over Q2 September 2007. Reliance Industries paid 5% higher advance tax to Rs 680 crore in Q2 September 2008 over Q2 September 2007.
Asian markets were trading weak today, 16 September 2008 as fears of a global financial crisis gripped investors across Asia. China's Shanghai Composite fell 3.67% or 76.37 points at 2,003.29, Japan's Nikkei lost 5.06% or 618.67 points 11,596.09, Hong Kong's Hang Seng plunged 6.52% or 1261.57 points at 18,091.33, Taiwan's Taiwan Weighted slipped 5.04% or 304.89 points at 5,747.56, Singapore's Straits Times declined 2.39% or 59.46 points at 2,427.09 and South Korea's Seoul Composite tumbled 5.70% or 84.26 points at 1,393.66
US markets collapsed on Monday, 15 September 2008 as investors worried about the impact of the latest twists in the credit crisis on the economy and the outlook for profits. The Dow Jones Industrial Average plunged 504.48 points, or 4.42%, to 10,917.51, the Nasdaq Composite index dropped 81.36 points, or 3.60%, to 2,179.91 and the Standard & Poor's 500 index fell 59 points, or 4.71% to 1,192.70.
Back home, bears ruled the roost on the bourses for the fifth consecutive day yesterday, 15 September 2008 as key benchmark indices posted substantial losses after US investment bank Lehman Brothers filed for bankruptcy protection. The BSE 30-share Sensex lost 469.54 or 3.35% at 13,531.27 and the S&P CNX Nifty lost 155.55 points or 3.68%, to settle at 4072.90 on that day.
Foreign institutional investors (FIIs) were net equity sellers worth Rs 763.02 crore while mutual funds bought shares worth Rs 1328.14 crore on Monday, 15 September 2008, according to provisional data on NSE. FIIs were net buyers of Rs 1156.23 crore in the futures & options segment on that day.
Meanwhile, Rajya Sabha member and former head of the PM’s economic panel C Rangarajan yesterday, 15 September 2008 said inflation may come down to 10% by December 2008. The former RBI governor said inflation last year was moderate towards the end of December, so base effect will heighten inflation in the current year. The base effect relates to the impact on inflation because of its level in the year-ago period.
Morning Call - Sep 16 2008
Market Grape Wine :
In House:
Nifty at a support of 3950 and 3882 with resistance at 4080 and 4195 levels.
Cash: Buy HDFC BANK above 1150 target 1225 with S/L 1130.
Cash: Buy ACC above 565 targets 595 with S/L 558.
Future: Sell REL INFRA below 844 target 800 with S/L 860.
Future: Sell ANSAL INFRA below 77 targets 70 with S/L 81.
Out House:
Markets at a support of 13035 & 13245 and resistance at 13567 & 13786 levels .
Marekts to open weak , maintain strict stop loss for your trades : Markets to be very volatile .
Steep Bounce back not ruled out from lower levels in Financial , Infrastructure & Capital goods stocks .
Buy : Bhel at dips
Buy : Corerproject at dips
Buy : LNT at dips
Buy : SBIN at dips
Dark Horse : Bhel , Sbin , ITC , LNT , Relcap
Market may plunge again
After falling over 450 points yesterday, the market is likely to fall further today on the back of weak global cues. Uncertainty is likely to prevail on lack of fund buying in the domestic market and the trend in the international markets. A fall in Asian indices in the ongoing trades may see the market resume on a weak note and could slip further during intra-day trades on sharp volatility. Among the local indices, the Nifty may slip to 4000 and 4110 while on the upside it could test 4110 to 4150 level. The Sensex has a likely support at 13400 and could test higher levels at 13700.
US indices saw worst day in 7 years on Monday, with the Dow Jones slumped 504 points to close at 10918 and the Nasdaq ended 81 points lower at 2180.
All the Indian ADRs fell in tune with the broader market. Satyam led the slump and tumbled 14.37% followed by ICICI Bank (down 12.53%), Patni Computer (down 11.15%) and HDFC Bank (down 10.48%). while Infosys, Rediff, Dr Reddy's, Tata Motors, MTNL and VSNL slipped by over 3-7% each.
Crude oil prices in the international market slipped, with the Nymex light crude oil for September delivery slipped by $5.47 at $95.71 a barrel. In the commodity segment, the Comex gold for December series gained $22.50 to settle at $787 an ounce.
Pre Session Commentary - Sep 16 2008
The Indian Market is expected to have negative opening as US markets closed in deep red and Asian markets are trading extremely lower. On Monday, domestic markets ended sharply lower after going through bloodbath for throughout of trading session on the back of negative global market led by credit crisis in the US financial space. Markets tanked in the wake of Lehman Brothers’ collapse and Merrill Lynch’s sale to Bank of America. Terror attacks in New Delhi also fueled to the investor’s negative attitude. Indian markets opened on weak note tracking negative global cues. Further markets extended its losses and continued to lose ground. European markets also tumbled on Lehman woes. Though some recovery was happened during final trading on the back of news that China''s central bank, has cut benchmark lending rates by 27 basis points to 7.20%, on 15 September 2008,. The People''s Bank of China (PBOC) also cut the reserve requirement for all except the country''s five biggest banks and the Postal Savings Bank by 1%. This recovery did not helped the markets much as still closed with heavy losses. From the sectoral front, rate sensitive sectors Reality and IT stocks witnessed ended with huge loss of more than 7% and 5% respectively. Followed by, Metal, Oil & Gas, Capital Goods and Bank stocks who also remained out of favour. Mid cap and Small cap stocks also witnesses most of the selling pressure as lost more than 4%. The BSE Sensex closed lower by 469.54 points at 13,531.27 and NSE Nifty ended down by 215.55 points at 4,072.90. The BSE Mid Caps and Small Caps closed with losses of 248.55 points at 5,288.59 and by 331.07 points at 6,380.47. We expect that market will continue its losing trend during the trading session.
On the global front Lehman Brothers filed for bankruptcy protection in US. Along with that AIG was a bigger concern for the markets as facing liquidity crunch and seeking $40 billion loan from Federal Reserve to raise capital. American International Group Inc sank 61% and Washington Mutual Inc. decreased 27%. Further, Bank of America agreed to buy Merill Lynch at a premium $29 per share as compared to the last closing price of $17 per share.
On Monday, the US market closed in deep red on Lehman''s bankruptcy. Crude has slipped to 7 month low on demand concerns after Lehman Brothers has filed Chapter 11 bankruptcy. Crude oil for October delivery fell $5.47 to settle at $95.71 a barrel on the New York Mercantile Exchange, which was oil''s first settlement under $100 since March 4. Earlier, prices dipped to $94.13, the lowest trading level in seven months.
The Dow Jones Industrial Average (DJIA) closed lower by 504.48 points to close at 10,917.51 followed by the NASDAQ index ended down by 81.36 points at 2,179.91 and the S&P 500 (SPX) lost 59.00 points or 4.71%, which is largest one-day percent drop since the first session following the attacks on September 11, 2001, to close at 1,192.70.
Indian ADRs ended lower. In technology sector, Satyam ended lower by (14.37%) followed by Patni Computers dropped by (11.15%), Wipro plunged (6.93%) and Infosys lost (6.55%). In banking sector ICICI Bank and HDFC Bank lost (12.53%) and (10.48%). In telecommunication sector, Tata Communication and MTNL plunged (7.74%) and (6.80%). Sterlite industries decreased by (10.45%).
Today the major stock markets in Asia crashed. Hang Seng index plunged 1,261.57 points at 18,091.33 along with Japan’s Nikkei trading weak by 618.67 points at 11,596.09, Taiwan Weighted lost 304.89 points at 5,747.56 and Singapore''s Straits fell 59.46 points at 2,427.09.
The FIIs on Monday stood as net seller in equity and net buyer in debt. Gross equity purchased stood at Rs2,687.80 Crore and gross debt purchased stood at Rs399.80 Crore while the gross equity sold stood at Rs3,544.30 Crore and gross debt sold stood at Rs146.60Crore. Therefore, the net investment of equity reported was (Rs856.40) Crore and net debt was Rs253.20 Crore.
The rupee tumbled for fifth consecutive session to a two-year low on Monday of Rs 46 against the US dollar, its weakest since 2 October 2006. It ended at 46.04/05 against September 12 close of 45.74.
Today, Nifty has support at 3,816 and resistance at 4,120 and BSE Sensex has support at 12,719 and resistance at 13,727.
Today's Pick - Aban Offshore
We recommend a buy in Aban Offshore from a short-term perspective. It is clearly visible from the charts of Aban Offshore that its intermediate-term downtrend which began in late May from Rs 4,292 appears to have halted at around Rs 2,015 during late August. However, the stock reversed direction, after finding support at Rs 2,015 in late August. This stock’s reversal had been supported by a prolonged positive divergence in the daily moving average convergence and divergence, which is heading towards the positive territory. On September 4, the stock penetrated its intermediate-term down trendline by surging 5 per cent with good volume. Subsequently, the stock crossed over its 21-day moving average gaining bullish momentum and is trading above this average. We notice a hammer candlestick formation on September 15, which is a bullish pattern supporting our view. The daily relative strength index (RSI) is rising towards the bullish zone and the weekly RSI is likely to enter the neutral region. Our short-term forecast for the stock is bullish. We expect the stock to trend upward until it hits our price target of Rs 2,550 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 2,195.
via BL
Gold Ends Higher In Volatile Session
Pressure Mounting As Crude Keeps Fumbling
Gold gained again on Monday and moved further away from its multi-month low from last week. Gold for December delivery ended at $787.00, up $22.50 on the session. Prices hit as high as $789.50 in overnight transactions. MCX October expiry closed the session at Rs 11643 per 10 grams up Rs 222.
The precious metal gained as Lehman Brothers Holdings said it plans to file for Chapter 11 bankruptcy protection. Also on Monday, Bank of America Corp. (BAC) said it agreed to acquire Merrill Lynch & Co. (MER) in a $50 billion all-stock transaction. Meanwhile, American International Group (AIG) has received multiple analyst downgrades.
The greenback saw early weakness in overnight trading versus other majors on Monday in New York, falling to near-term lows against the euro, pound and franc. However, the dollar bounced back to pare most of its losses.
Gold's spike was somewhat subdued as oil prices have plunged after Gulf of Mexico refineries survived Hurricane Ike's weekend hit on Texas without major damage. Crude fell as low as $94.13 in electronic trading, its lowest level in months. On the economic front Monday morning, business activity in the New York state manufacturing sector has shown a notable contraction in the month of September, according to a report released by the Federal Reserve Bank of New York.
The report showed that the index of activity in the sector fell to a negative 7.4 in September from a positive 2.8 in August, with a negative reading indicating a contraction in the sector. Economists had expected the index to edge down to a positive 1.4.
Morgan Stanley - next ?
Investment bank Morgan Stanley could be the next target of the US financial crisis that has felled some of the biggest giants of Wall Street, says a 30-year veteran bond trader who lived through the October 1987 ‘Black Monday’ stock market crash.
“If I were to take the next target, it would be Morgan Stanley... I think they’re next in line,” says John J Jansen, who began his career at the Open Market Desk of the Federal Reserve Bank of New York and spent several years trading treasuries and high-grade fixed income products for some of the largest primary dealer firms.
Read more on DNA
Lehman invested in DLF, Unitech
Lehman Brothers’ bankruptcy is likely to cost Indian real estate dear. It may impact the financial major’s existing investments worth $500 million in realty firms, including DLF and Unitech, besides drying up another $500-million worth of potential investment which was expected to flow into Unitech’s Mumbai projects.
The news of Lehman’s collapse brought the BSE realty index down by 7.65% on Monday, while the benchmark Sensex declined 3.35%. Both DLF and Unitech fell 7.5%.
Lehman’s fall signals a deepening of credit crisis for Indian developers, who have lately been battling falling sales, rising cost of construction and tightening credit. It is expected that the US-based firm is likely to go for a fire sale of its assets.
The financial services major was very bullish on India and was among the active investors in Indian real estate. Early this year, it had leased out an office space in Mumbai paying Rs 1 crore per month as rental. This would divert a part of fresh funds seeking to invest in Indian realty.
This is because global fund houses have country-allocations. And as they buyout Lehman’s stake in some of the Indian assets, they will end up diverting some of the fresh funds-in-hand to existing assets rather than investing in new projects.
“Lehman’s departure will impact future cash flows of real estate companies. In a market situation like today’s, it will be all the more difficult for the firms to raise funds,” says Karvy Stock Broking vice-president Ambareesh Baliga.
Lehman invested $200 million in DLF promoter group company DLF Assets last year and bought 50% stake in Unitech’s Mumbai project for $175 million a few months ago. It had also invested $80 million in Bangalore-based SEZ Gandhi City and was likely to hike its share to $300 million.
Lehman’s other investments include a 40% stake in an IT park project of Peninsula Land in Hyderabad for an initial investment of Rs 50 crore. It had also teamed up with Mumbai-based developer HDIL to bid for the redevelopment of Asia’s largest slum Dharavi.
Wherever the developers had received fund, they are safe. But where the funds are yet to come, the developers could get stuck. Some analysts say a distress sale by Lehman will impact the valuation of existing projects.
DLF CFO Ramesh Sanka had earlier told ET that Lehman’s sale of investments in DAL would not impact DAL’s valuation. Unitech MD Sanjay Chandra said that his company had already received funds. So, the company won’t get impacted by Lehman’s bankruptcy.
Some industry executives say that FDI norms of a three-year lock-in period may prevent Lehman from making an immediate sale. But analysts argue that the lock-in period in case of bankruptcy may not hold.
Via ECONOMIC TIMES
Goldman Sachs - India Holdings
| GTC Industries Ltd | Goldman Sachs Investment (Mauritius) | 2.73 | 458782 |
| Hero Honda Motors Ltd | Goldman Sachs Investment (Mauritius) | 1.13 | 2249763 |
| Hero Honda Motors Ltd | Goldman Sachs Investment (Mauritius) | 1.29 | 2579428 |
| Hero Honda Motors Ltd | Goldman Sachs Investment (Mauritius) | 1.36 | 2716268 |
| Hero Honda Motors Ltd | Goldman Sachs Investment (Mauritius) | 1.5 | 3002349 |
| Hero Honda Motors Ltd | Goldman Sachs Investment (Mauritius) | 1.6 | 3196574 |
| Hero Honda Motors Ltd | Goldman Sachs Investment (Mauritius) | 1.69 | 3376435 |
| Lloyd Electric & Engineering Ltd | Goldman Sachs Investment (Mauritius) | 3.93 | 700000 |
| Punjab National Bank | Goldman Sachs Investment (Mauritius) | 4.42 | 13942761 |
| Punjab National Bank | Goldman Sachs Investment (Mauritius) | 4.63 | 14606923 |
| Shasun Chemicals & Drugs Ltd | Goldman Sachs Investment (Mauritius) | 2.2 | 201226 |
| Shasun Chemicals & Drugs Ltd | Goldman Sachs Investment (Mauritius) | 2.24 | 204376 |
| Shasun Chemicals & Drugs Ltd | Goldman Sachs Investment (Mauritius) | 2.28 | 209026 |
| Shasun Chemicals & Drugs Ltd | Goldman Sachs Investment (Mauritius) | 2.28 | 209116 |
| Shasun Chemicals & Drugs Ltd | Goldman Sachs Investment (Mauritius) | 2.39 | 218460 |
| Shasun Chemicals & Drugs Ltd | Goldman Sachs Investment (Mauritius) | 2.66 | 1216570 |
| Aftek Ltd | Goldman Sachs Investment | 1.63 | 1410531 |
| Champagne Indage Ltd | Goldman Sachs Investment | 2.47 | 300000 |
| Wanbury Ltd | Goldman Sachs Investment | 1.88 | 239900 |
| McNally Bharat Engineering Company Ltd | Goldman Sachs Investements Mauritius I | 1.19 | 317902 |
| Gujarat State Fertilizers & Chemicals Ltd | Goldman Sachs Invest Mauritius Ltd | 1.09 | 872039 |
| Gujarat State Fertilizers & Chemicals Ltd | Goldman Sachs Invest Mauritius Ltd | 1.16 | 923158 |
| United Phosphorus Ltd | Goldman Sachs Invest Mauritius India Ltd | 1.09 | 2043577 |
| United Phosphorus Ltd | Goldman Sachs Invest Mauritius India Ltd | 1.64 | 3070654 |
| Zicom Electronic Security Systems Ltd | Goldman Sachs Invesments (Mauritius) I | 4.06 | 379686 |
| Geodesic Information Systems Ltd | Goldman Sachs Inv Mauritius I Ltd | 6.43 | 3775708 |
| Geodesic Information Systems Ltd | Goldman Sachs Inv Mauritius I Ltd | 6.71 | 3939897 |
| Valecha Engineering Ltd | Goldman Sachs Inv Mauritius I Ltd | 1.45 | 100324 |
| Visa Steel Ltd | Goldman Sachs Inv Mauritius I Ltd | 4.18 | 4600648 |
| K Sera Sera Productions Ltd | Goldman Sachs Inv Mauritius | 2.39 | 466713 |
| Gitanjali Gems Ltd | Goldman Sachs Inv Mau India Ltd | 1.33 | 804178 |
| Gitanjali Gems Ltd | Goldman Sachs Inv Mau India Ltd | 4.83 | 2849619 |
| Shree Renuka Sugars Ltd | Goldman Sachs Funds | 1.75 | 471918 |
| Ruchi Soya Industries Ltd | Goldman Sach Investments(Mauritius) I Ltd | 1.51 | 552547 |
| Ruchi Soya Industries Ltd | Goldman Sach Investments(Mauritius) I Ltd | 1.55 | 564396 |
| Ruchi Soya Industries Ltd | Goldman Sach Investments(Mauritius) I Ltd | 1.82 | 3327410 |
| Indiabulls Financial Services Ltd | Goldman Sach Investments Mauritius Ltd | 4.76 | 8716176 |
| Indiabulls Financial Services Ltd | Goldman Sach Investments Mauritius Ltd | 4.81 | 8114365 |
| Lloyd Electric & Engineering Ltd | Goldman Sach Investments Mauritius Ltd | 4.2 | 1134446 |
| Lloyd Electric & Engineering Ltd | Goldman Sach Investments Mauritius Ltd | 5.17 | 1397790 |
| Lloyd Electric & Engineering Ltd | Goldman Sach Investments Mauritius Ltd | 7.57 | 2346066 |
| Lloyd Electric & Engineering Ltd | Goldman Sach Investments Mauritius Ltd | 8.65 | 2335566 |
| Indiabulls Financial Services Ltd | Goldman Sach Investments Mauritius I Ltd | 3.86 | 8601227 |
| Anant Raj Industries Ltd | Goldman Sach Investments Ltd | 1.23 | 422782 |
| Anant Raj Industries Ltd | Goldman Sach Investments I Ltd | 1.17 | 420400 |
| Intellvisions Software Ltd | Goldman Sach Investments (Maurtius) | 5.97 | 350000 |
| Intellvisions Software Ltd | Goldman Sach Investments (Maurtius) | 9.5 | 665000 |
| Mastek Ltd | Goldman Sach Investments (Mauritius) Ltd | 4.99 | 694709 |
| Mastek Ltd | Goldman Sach Investments (Mauritius) Ltd | 6.06 | 851872 |
| Tata Steel Ltd | Goldman Sach Investments (Mauritius) Ltd | 1.58 | 9598961 |
| Webel Sl Energy Systems Ltd | Goldman Sach Investments (Mauritius) Ltd | 1.93 | 125548 |
| Intellvisions Software Ltd | Goldman Sach Investments (Mauritius) | 10 | 700000 |
| Provogue (India) Ltd | Goldman Sach Investments (Mauritius) | 1.28 | 243681 |
| Provogue (India) Ltd | Goldman Sach Investments (Mauritius) | 1.34 | 256480 |
| Provogue (India) Ltd | Goldman Sach Investments (Mauritius) | 1.87 | 356806 |
| Provogue (India) Ltd | Goldman Sach Investments (Mauritius) | 2.11 | 403751 |
| Crompton Greaves Ltd | Goldman Sach Investments | 1.08 | 3973951 |
| Federal Bank Ltd | Goldman Sach Investments | 2.35 | 2008900 |
| Federal Bank Ltd | Goldman Sach Investments | 2.36 | 2020975 |
| Federal Bank Ltd | Goldman Sach Investments | 3.05 | 2000000 |
| Intellvisions Software Ltd | Goldman Sach Investments | 9.5 | 665000 |
| Carnation Nutra-Analogue Foods Ltd | Goldman Sach Investment Mauritius | 1.39 | 77565 |
| Anant Raj Industries Ltd | Goldman Sach Investment I Ltd | 1.01 | 418700 |
| Shah Alloys Ltd | Goldman Financial Investors | 1.25 | 246480 |
| Ajanta Pharma Ltd | Goldman Commodity Pvt Ltd | 2.25 | 263335 |
| Paramount Communications Ltd | Goldman Cachs Investments Mauritius India Ltd | 1.29 | 183420 |
| Paramount Communications Ltd | Goldman Cachs Investments Mauritius India Ltd | 1.53 | 217200 |
| Tata Teleservices (Maharashtra) Ltd | Goldman Agent Pvt Ltd | 8.72 | 122561358 |
| Champagne Indage Ltd | Goldman Sachs Investment | 2.36 | 300000 |
UNVERIFIED
Once in a Century Crisis - Greenspan
The US is in a "once-in-a-century" financial crisis and chances of it escaping a recession next year is less than 50 percent, former Chairman of Federal Reserve Alan Greenspan said on Sunday.
Greenspan, whose voice and views carry tremendous weight still on Wall Street, argued that it is not in the best interests of either financial industry or that of the economy to have the government getting involved in the short-selling in the financial institutions until the situation stabilised.
"If you had pressed me the last time I was here, I would say very unlikely," Greenspan told ABC News when asked on the prospect of the United States escaping recession next year.
"The remarkable thing is now the non-financial part of the economy is done...we've gone through a period of long-term interest rates being very low, and that enabled corporate sector and business generally to take its short-term liabilities and fund them into longer-term liabilities at low interest rates," he said.
Asked if the chances of escaping a recession now is greater than 50 percent, Greenspan said, "No, I think it's less than 50 percent. I can't believe we could have a once-in-a-century type of financial crisis without a significant impact on the real economy globally, and I think that indeed is what is in the process of occurring."
Greenspan was asked that against a backdrop of failure of the mortgage giants, in the folding of Bear Stearns and now with the crisis at Lehman Brothers, whether America is going to witness to more financial institutions failing.
"I suspect we will. But in and of it that does not need to be a problem. It depends on how it is handled and how the liquidations take place. And indeed we shouldn't try to protect every single institution," he said.
Oil's great crash
Oil prices plunged on Monday to seven-month lows below USD 93 on prospects of weaker energy demand amid a worsening global financial crisis after Lehman Brothers' bankruptcy, analysts said.
In London, Brent North Sea crude for delivery in October tumbled USD 4.81 to USD 92.77 a barrel -- the lowest level since February.
New York's main contract, light sweet crude for October, dived USD 5.26 to USD 95.82 a barrel.
"Turmoil in the financial markets hurt sentiment and reinforced concerns about weaker oil demand growth," said Sucden analyst Michael Davies in London.
Oil prices were also weighed down by news that damage to US oil platforms caused by Hurricane Ike had not been as bad as feared, analysts said.
US officials said that Ike, which slammed the US Gulf Coast on Saturday, had damaged about 10 oil platforms in the Gulf of Mexico where major energy installations are located.
"The initial perception is that there hasn't been much structural damage to oil and refinery infrastructure," said David Moore, a Sydney-based commodity strategist with the Commonwealth Bank of Australia.
Crude prices are down by more than a third in value from record levels of above USD 147 reached in July, as investors grow increasingly pessimistic about weakening energy demand amid signs the global economy is slowing down.
Fuelling investors' concerns was the announcement today that Lehman Brothers would file for bankruptcy after the investment bank, in desperate need of capital injection, failed to find a buyer.
Global stock markets plunged between three and seven percent today on concerns over the beleaguered world economy.
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