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Wednesday, September 24, 2008
Post Session Commentary - Sep 24 2008
Domestic markets rebounded today after sharp fall on Tuesday to close with gains ahead of September F&O expiry on Thursday. Markets today opened on upbeat note as US-India civilian nuclear cooperation agreement moved closer to approval by Congress on Tuesday. US Senate Foreign Relations Committee passed the Indo-US civilian nuclear deal with a majority of 19-2. With this approval, first step is cleared and it is to be approved by House of Representatives. Drop in crude oil for November delivery by $2.76 to $106.61 on the New York Mercantile Exchange also added to positive sentiment. Further, markets continued its northward journey on the news of US investor Warren Buffet’s announcement of an infusion of $5 billion in Goldman Sachs Group. Though, markets trimmed some of its growth during second half of trading on inflation worries for the week ended 13th September 2008, but still ended on positive note. BSE Sensex ended above 13,650 level and NSE Nifty closed above 4,150 mark. From the sectoral front, Metal, Capital Goods, Oil & Gas and Bank stocks witnessed most of the buying. However, IT and Consumer Durable stocks witnessed most of the selling from these baskets. The market breadth was positive as 1349 stocks closed in green while 1241 stocks closed in red and 89 stocks remained unchanged.
The BSE Sensex closed higher by 122.21 points at 13,692.52 and NSE Nifty ended up by 34.35 points at 4,161.25. The BSE Mid Caps and Small Caps closed with gains of 13.47 points at 5,126.78 and by 8.54 points at 6,101.51. The BSE Sensex touched intraday high of 13,840.81 and intraday low of 13,592.79.
The markets were closed between 11.25AM to 12.10PM on account of disruption of satellite services due to sun outage. The new trading timing is effective from today (24th September 2008) to 8 October 2008. Trading will start as usual at 9.55 IST, but will end at 16.15 IST.
Gainers from the BSE are Sterlite In (8.36%), HDFC Bank Ltd (3.57%), Tata Steel (3.13), Reliance Infra (2.92%), Grasim Indus (2.35%), BHEL (2.29%), Bharti Airtel (2.03%), Reliance (1.89%), M&M Ltd (1.75%), DLF Ltd (1.43%) and SBI (1.05%).
The BSE Metal index surged 217.75 points to close at 10,142.29. Major gainers are Sterlite In (8.36%), Nalco (5.79%), Tata Steel (3.13), Jai Corp Ltd (1.73%), Welspan Guajrat Sr (1.60%) and Jindal Saw (1.53%).
The BSE Oil & Gas index ended up by 113.87 points at 9,435.85 as Cairn India (2.68%), Reliance (2.30%), IOC Ltd (1.78%), Reliance Natural Resources (1.20%), ONGC Ltd (0.65%) and BPCL (0.42%) ended in positive territory.
The BSE Capital Goods index gained 122.00 points to close at 11,340.80 Major gainers are Everest Kanto (6.78%), Usha Martin (6.08%), Jyoti Struct (4.58%), Crompton Greaves (4.10%), Praj Indus (4.08%) and BHEL (3.43%).
The BSE Bank index closed higher by 82.23 points at 6,886.65. Gainers are Indus Ind Bank (4.79%), Axis Bank (3.76%), HDFC Bank Ltd (3.57%), IDBI Bank Ltd (3.25%), Kotak Bank (1.56%) and Allahabad Bank (1.33%).
The BSE Consumer Durables index ended lower 39.51 points to close at 3,166.84. As Titan Ind (3.00%), Gitanjali GE (1.07%), Videocon Ind (0.50%) and Blue Star L (0.02%) closed in negative territory.
The BSE IT index dropped by 37.94 points to close at 3,417.11. As Wipro Ltd (5.05%), Oracle Fin (2.49%), NIIT Ltd (1.46%), Financ Tech (1.33%), Infosys Tech (1.27%), TCS Ltd (1.01%) and Mphasis Ltd (0.68%) closed in negative territory.
BSE Bulk Deals to Watch - Sep 24 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
24/9/2008 524412 AAREY DRUGS PRAFULLABEN AMRUTBHAI SONI B 30971 55.18
24/9/2008 533016 AUSTRAL COKE OPG SECURITIES P LTD B 544670 239.54
24/9/2008 533016 AUSTRAL COKE OPG SECURITIES P LTD S 544670 239.56
24/9/2008 590059 BIHAR TUBES ELARA INDIA OPPORTUNITIES FUND LIMITED B 150000 199.50
24/9/2008 590059 BIHAR TUBES NISHWET MANAGEMENT SERVICES PVT LTD S 57682 199.50
24/9/2008 590059 BIHAR TUBES NIRMAN MANAGEMENT SERVICES PVT LTD S 57643 199.53
24/9/2008 531682 CAT TECHNOL S V ENTERPRISES B 640329 6.55
24/9/2008 531682 CAT TECHNOL S V ENTERPRISES S 760141 6.51
24/9/2008 532413 CEREBRA INT SUNIL RAHEJA B 32500 23.24
24/9/2008 513059 G.S. AUTO HARDIK M MITHANI B 17109 88.82
24/9/2008 513059 G.S. AUTO J V STOCK BROKING PRIVATE LIMITED B 30510 88.79
24/9/2008 513059 G.S. AUTO YUVAK SHARE TRADING PVT LTD B 66523 88.31
24/9/2008 513059 G.S. AUTO MEET SHARES AND STOCK SERVICES P LTD S 20900 89.56
24/9/2008 513059 G.S. AUTO BALAJI CORPORATION S 20181 90.04
24/9/2008 513059 G.S. AUTO J V STOCK BROKING PRIVATE LIMITED S 23343 89.32
24/9/2008 513059 G.S. AUTO YUVAK SHARE TRADING PVT LTD S 51689 88.46
24/9/2008 531137 GEMSTONE INV ANKIT RAJENDRA SANCHANIYA B 21500 55.87
24/9/2008 531137 GEMSTONE INV BHAVESH PRAKASH PABARI B 26000 56.87
24/9/2008 531137 GEMSTONE INV MALA HEMANT SHETH B 44050 55.30
24/9/2008 531137 GEMSTONE INV KISHOR B CHAUHAN S 50000 55.12
24/9/2008 531137 GEMSTONE INV PREM M PARIKH S 28000 57.90
24/9/2008 531137 GEMSTONE INV BHAVESH P PABARI S 26300 56.08
24/9/2008 531439 GOLDSTON TEC ANKIT RAJENDRA SANCHANIYA S 122500 117.09
24/9/2008 505840 JAIPAN INDUS VHM IMPEX PRIVATE LTD B 56150 205.69
24/9/2008 504269 KHAITAN ELCT ARION COMMERCIAL PVT LTD B 100000 53.00
24/9/2008 504269 KHAITAN ELCT PACIFIC CORPORATE SERVICES LTD S 100000 53.00
24/9/2008 531602 KOFF BR PICT LEELABEN AMRUTLAL DARJI B 47285 41.37
24/9/2008 531602 KOFF BR PICT ARVIND NAGINBHAI PATEL B 26889 41.76
24/9/2008 531602 KOFF BR PICT NEHA UMESH DHRUVA B 27610 41.85
24/9/2008 532045 NEXXOFT INFO MUKESH G KONDE B 39439 32.44
24/9/2008 532045 NEXXOFT INFO KANTA ANANTRAI DESAI S 30000 32.45
24/9/2008 532045 NEXXOFT INFO SNEHA PANKAJ DESAI S 51000 32.45
24/9/2008 532045 NEXXOFT INFO NARESH KASAHVLAL RAVAL S 26000 32.40
24/9/2008 532045 NEXXOFT INFO MUKESH HIRALAL DOCTARIA S 34000 32.45
24/9/2008 533015 NUTEK INDIA OPG SECURITIES P LTD B 334598 125.90
24/9/2008 533015 NUTEK INDIA OPG SECURITIES P LTD S 334598 126.05
24/9/2008 531996 ODYSSEY CORP DAHLIA TRADERS PVT LTD S 31800 33.75
24/9/2008 531769 PFL INFOTECH VISHU ENTERPRISE S 41700 12.12
24/9/2008 503873 PRIYA SPIN L PRADEEP KUMAR AGARWAL B 78000 8.95
24/9/2008 503873 PRIYA SPIN L ARVIND KUMAR AGGARWAL S 70000 8.94
24/9/2008 522207 RASAND ENG I VINCENT COMMERCIAL CO. LTD. B 43500 53.75
24/9/2008 522207 RASAND ENG I SUDHA COMMERCIAL COMPANY LIMITED S 43500 53.75
24/9/2008 531646 RFL INTERNAT KALAVATIBEN BHARATKUMAR SHAH S 27500 0.96
24/9/2008 505075 SETCO AUTO SETCO ENGINEERING PVT LTD B 250000 195.00
24/9/2008 505075 SETCO AUTO HARISH KIRITBHAI SHETH HUF S 250000 195.00
24/9/2008 523756 SREI INFRA CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD S 601028 75.35
24/9/2008 531917 TWINSTA SO E KAMLESH BUDDHICHAND CHHEDA B 100000 3.20
24/9/2008 531917 TWINSTA SO E NAMITA STOCKTRADE PVT LTD S 100000 3.15
24/9/2008 532765 USHER AGRO PRITESH ASHOK PATEL B 400000 120.00
24/9/2008 532765 USHER AGRO SOPHIA GROWTH B 600000 119.96
24/9/2008 532765 USHER AGRO MERILL LYNCH CAPITAL MARKET ESPANA S A SVB S 970000 120.00
24/9/2008 533011 VISHAL INFO OPG SECURITIES P LTD B 238728 347.75
24/9/2008 533011 VISHAL INFO OPG SECURITIES P LTD S 238728 347.40
NSE Bulk Deals to Watch - Sep 24 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
24-SEP-2008,AUSTRAL,Austral Coke & Projects L,AMBIT SECURITIES BROKING PVT. LTD.,BUY,266144,241.14,-
24-SEP-2008,AUSTRAL,Austral Coke & Projects L,CPR CAPITAL SERVICES LTD.,BUY,148533,245.53,-
24-SEP-2008,AUSTRAL,Austral Coke & Projects L,YUVAK SHARE TRADING PVT LTD,BUY,150307,257.10,-
24-SEP-2008,DIVISLAB,Divi's Laboratories Limit,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,2160000,1397.00,-
24-SEP-2008,EMCO,Emco Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,1850000,93.75,-
24-SEP-2008,FINANTECH,Financial Technologies (I,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,325000,1366.00,-
24-SEP-2008,JINDALSAW,Jindal Saw Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,900434,608.75,-
24-SEP-2008,KHAITANELE,Khaitan Electricals Ltd,ARION COMMERCIAL PVT LTD,BUY,100000,53.00,-
24-SEP-2008,KKCL,Kewal Kiran Clothing Limi,NALANDA INDIA FUND LIMITED,BUY,1200000,178.00,-
24-SEP-2008,PRAKASH,Prakash Industries Ltd.,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,5939932,121.50,-
24-SEP-2008,SUBEX,Subex Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,2000000,86.05,-
24-SEP-2008,VITLINFO,Vishal Information Techno,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,BUY,82017,348.39,-
24-SEP-2008,AUSTRAL,Austral Coke & Projects L,AMBIT SECURITIES BROKING PVT. LTD.,SELL,266149,241.54,-
24-SEP-2008,AUSTRAL,Austral Coke & Projects L,CPR CAPITAL SERVICES LTD.,SELL,148533,245.60,-
24-SEP-2008,AUSTRAL,Austral Coke & Projects L,YUVAK SHARE TRADING PVT LTD,SELL,151851,256.78,-
24-SEP-2008,DIVISLAB,Divi's Laboratories Limit,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,2160000,1397.00,-
24-SEP-2008,EMCO,Emco Limited,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,1855793,93.75,-
24-SEP-2008,FINANTECH,Financial Technologies (I,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,325000,1366.00,-
24-SEP-2008,JINDALSAW,Jindal Saw Limited,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,900434,608.75,-
24-SEP-2008,KHAITANELE,Khaitan Electricals Ltd,PACIFIC CORPORATE SERVICES LTD,SELL,100000,53.00,-
24-SEP-2008,KKCL,Kewal Kiran Clothing Limi,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,1200000,178.00,-
24-SEP-2008,PIONEEREMB,Pioneer Embroideries Limi,YASHMAN VYAPAAR PVT LTD.,SELL,60169,27.41,-
24-SEP-2008,PRAKASH,Prakash Industries Ltd.,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,5939902,121.50,-
24-SEP-2008,SUBEX,Subex Limited,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,2000000,86.05,-
24-SEP-2008,VITLINFO,Vishal Information Techno,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,SELL,82017,347.83,-
Firm amidst volatility
The market was back on track after displaying subdued trend for the last couple of sessions. The market remained firm, above 15,600 levels, for almost the entire trading session. The 30-stock Sensex began the day 61 points above its previous close at 13,631 and moved up to touch an intra-day high of 15,841 on substantial buying support in heavyweight, metal and oil & gas stocks. The index also received major support from banking, power and capital goods stocks, each of which gained around 1% today. The Sensex finally wrapped up the session with a gain of 122 points at 13,692, while the Nifty closed with a gain of 34 points at 4,161.
The breadth of the market was positive. Of the 2,679 stocks traded on the BSE, 1,349 stocks advanced, while 1,241 stocks declined. 89 stocks ended unchanged. Among the sectoral indices, the BSE Metal index moved up by 2.19% followed by the BSE Oil & Gas index (up 1.22%), the BSE Bankex (up 1.21%) and the BSE Power index (up 1.10%). However, the BSE CD, BSE IT and BSE Teck indexes closed in negative territory.
Among the heavyweights, Sterlite Industries gained 8.36% at Rs487.55, HDFC Bank soared 3.57% at Rs1,281.85, Tata Steel surged 3.13% at Rs485.70, Reliance Infrastructure moved up by 3.13% at Rs889.10, Grasim Industries scaled up 2.35% at Rs1,935.20, BHEL was up 2.29% at Rs1,663.30 and Bharti Airtel advanced by 2.03% at Rs779. Reliance Industries gained 1.89% at Rs2,047.60, Mahindra & Mahindra advanced by 1.75% at Rs559 and DLF moved up by 1.43% at Rs400.25. However, Wipro, Tata Motors, Infosys Technologies, Tata Consultancy Services, HDFC, NTPC, ITC and Maruti Suzuki India closed with moderate losses.
Over 96.10 lakh shares of Sesa Goa changed hands on the BSE followed by Reliance Natural Resources (87.33 lakh shares), JP Associates (75 lakh shares), Cals Refineries (63.13 lakh shares) and Austral Coke & Projects (60.67 lakh shares).
RIL leads 122-points Sensex rally
The domestic bourses saw a relief rally today posting decent gains and snapping losses of the last two trading sessions. The BSE Sensex rose 122.21 points. The barometer index had lost 472.01 points in last two trading sessions. The market breadth was positive. Sterlite Industries rose more than 8% on canceling a restructuring plan. Metal stocks rose. Index heavyweight Reliance Industries (RIL) edged higher
US stock futures rose boosted by Warren Buffett's Berkshire Hathaway's announcment of an infusion of $5 billion in Goldman Sachs Group. Goldman will sell $5 billion of preferred stock to Berkshire Hathaway, which will also receive warrants to purchase $5 billion of common stock with a strike price of $115 per share. Berkshire has five years to exercise the warrants. The Dow futures were up 83 points and the Nasdaq futures were up 14 points.
In Europe, France’s CAC 40, Germany’s DAX and UK’s FTSE 100 were up by between 0.11% to 0.17%. Most of the Asian markets were trading higher today, 24 September 2008. Key benchmark indices in Hong Kong, Singapore, Japan, China and South Korea were up by between 0.2% to 0.99%.
Meanwhile, a US-India civilian nuclear cooperation agreement moved closer to approval by Congress on Tuesday, 23 September 2008, when a key Senate Committee passed the deal with a landslide majority. However, the historic agreement is yet to clear a few hurdles in its final lap. The bill now goes to the floor of the Senate for the final ratification.
The BSE 30-share Sensex ended up 122.21 points or 0.9% to 13,692.52. The Sensex rose 270.50 points at day’s high of 13,840.81, hit in early afternoon trade. The index rose 22.48 points at the day's low of 13,592.79, hit in mid-afternoon trade.
The S&P CNX Nifty rose 34.35 points or 0.83% to 4,161.25. Nifty September 2008 futures were at 4182.25, at a premium of 21 points as compared to spot closing of 4161.25.
The BSE Sensex is down 6594.47 points or 32.5% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 7514.25 points or 35.43% below its all-time high of 21,206.77 struck on 10 January 2008.
BSE clocked a turnover of Rs 4,304 crore today, 24 September 2008 as compared to a turnover of Rs 4,336.47 crore on 23 September 2008.
NSE's futures & options (F&O) segment turnover was Rs 67,051.71 crore, which was lower than Rs 68,368.66 crore on Tuesday, 23 September 2008. The September 2008 derivatives will expire tomorrow, 25 September 2008.
The BSE Mid-Cap index was up 0.26% at 5,126.78 and the BSE Small-Cap index was up 0.14% at 6,101.51.
BSE Metal index (up 2.19% to 10,142.29), BSE Oil & Gas index (up 1.22% to 9,435.85), BSE Bankex (up 1.21% to 6,886.65), BSE Power index (up 1.1% to 2,473.39), BSE Capital Goods index (up 1.09% to 11,340.80) outperformed the Sensex.
BSE Consumer Durables index (down 1.23% to 3,166.84), BSE IT index (down 1.1% to 3,417.11), BSE Teck index (down 0.15% to 2,759.62), BSE Auto index was flat at 3,849.27, BSE HealthCare index (up 0.13% to 3,876.11), BSE Realty index (up 0.34% to 3,916.98), BSE FMCG index (up 0.35% to 2,189.68) and BSE PSU index (up 0.59% to 6,568.37) underperformed the Sensex.
The market breadth was positive on BSE with 1349 shares advancing as compared to 1241 that declined. 89 shares remained unchanged.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries rose 1.89% to Rs 2,047.60.
India’s largest commercial vehicle maker by sales Tata Motors declined 1.55% to Rs 387.95. It came off from the session’s high of Rs 401.85.
India's biggest power generation firm by revenue, NTPC, declined 0.7% to Rs 178.60.
India’s largest dedicated housing finance firm by operating income HDFC declined 0.82% to Rs 2,180.10. It came off from the session’s high of Rs 2,258.20.
India’s largest drug maker by sales Ranbaxy Laboratories rose 0.63% to Rs 310.80. It came off from session’s high of Rs 318. Japan's third-largest drugmaker Daiichi Sankyo said on Wednesday, 24 September 2008, its open offer to buy up to 20% stake in generic drugmaker Ranbaxy Laboratories was oversubscribed. Investors had tendered more than 92.5 million Ranbaxy shares between in the open offer, Daiichi Sankyo said.
In June 2008, Daiichi Sankyo had agreed to buy the 34.8% held by Ranbaxy's founding family, and to make an open offer for a further 20% of Ranbaxy shares, as per Securities & Exchange Board of India (Sebi) takeover regulations.
IT stocks recovered from lower levels. But majority of them ended in the red. Wipro (down 5.05% to Rs 370.75), Infosys (down 1.27% to Rs 1,523.70) and Tata Consultancy Services (down 1.01% to Rs 713.45) edged lower. India’s third largest IT exporter by sales Satyam Computer Services rose 0.68% to Rs 333.90.
Metal stocks rose. National Aluminum Company (up 5.79% to Rs 419.35), Tata Steel (up 3.13% to Rs 485.70), Hindalco Industries (up 0.69% to Rs 108.85), Steel Authority of India (up 0.11% to Rs 142.25) and edged higher.
Sterlite Industries (India) surged 8.36% to Rs 487.55 after the company dropped a restructuring plan. The stock came off from session's high of Rs 517.70. From a recent high of Rs 622.35 on 8 September 2008, the stock had tumbled 27.7% to Rs 449.95 on 23 September 2008 after parent Vedanta Resources said it will transfer Sterlite's aluminium and energy businesses to Madras Aluminium Company as part of restructuring. The restructuring of the Vedanta group was planned to result in three units focused on commodities produced by the group: copper, zinc and lead; aluminium and energy; and iron ore.
India’s largest engineering and construction firm by sales Larsen & Toubro rose 0.85% to Rs 2,553.70 after the company said it has bagged several large value orders aggregating Rs 5000 crore for the construction of a slew of institutional, commercial, residential and factory buildings.
HDFC Bank (up 3.57% to Rs 1,281.85), Tata Steel (up 3.13% to Rs 485.70), Reliance Infrastructure (up 2.92% to Rs 889.10), Grasim Industries (up 2.35% to Rs 1,935.20), Bharat Heavy Electricals (up 2.29% to Rs 1,663.30), Bharti Airtel (up 2.03% to Rs 810.40) edged higher from the Sensex pack.
Sesa Goa clocked the highest volume of 96.1 lakh shares on BSE. Reliance Natural Resources (87.33 lakh shares), Jaiprakash Associates (75.19 lakh shares), Cals Refineries (63.13 lakh shares) and Austral Coke & Projects (60.67 lakh shares) were the other volume toppers in that order.
Reliance Capital clocked the highest turnover of Rs 259.22 crore on BSE. Reliance Industries (Rs 229.66 crore), Austral Coke & Projects (Rs 149.21 crore), Sterlite Industries (Rs 148.14 crore) and ICICI Bank (Rs 134.50 crore) were the other turnover toppers in that order.
US stocks fell on Tuesday, 23 September 2008, on fear that congressional wrangling could delay a proposed $700 billion plan to rescue the financial sector, increasing worries about the struggling US economy. The Dow Jones industrial average fell 161.52 points, or 1.47%, to end at 10,854.17. The Standard & Poor's 500 Index slid 18.87 points, or 1.56%, to 1,188.22. The Nasdaq Composite Index dropped 25.64 points, or 1.18%, to 2,153.34.
Pre Session Commentary - Sep 24 2008
The Market is expected to have negative opening due to weak cues from the global markets as US markets closed in red and Asian markets are trading mixed. On Tuesday, the Indian markets closed deep into red on US bailout concerns as is an uncertainty on the details regarding the U.S. government’s $700 billion plan to fix the financial market turmoil and the two major Wall Street investment banks Goldman Sachs and Morgan Stanley, converted to a traditional banking structure. Crude oil also weighs on the sentiments. Domestic markets opened sharply lower and continued to trade on negative terrain on weak global cues. Though markets struggled to recover during early trade but were not able to maintain the strength and skid further. Finally markets ended with huge losses on profit booking over the counters. BSE Sensex ended below 13,600 level and NSE Nifty below 4,150 mark. From the sectoral front, all of the indices ended in red and among those, Bank, Capital Goods, Metal, Reality, IT and Oil & Gas stocks contributed to most of the selling pressure. Mid cap and Small cap stocks also crushed during the trading session as ended with loss of more than 2% and 1% respectively. We expect that the market remain volatile during the trading session.
The BSE Sensex closed lower by 424.65 points at 13,570.31 and NSE Nifty ended down by 96.15 points at 4,126.90. The BSE Mid Caps and Small Caps closed with losses of 107.65 points at 5,113.31 and by 101.14 points at 6,092.97. The BSE Sensex touched intraday high of 13,978.26 and intraday low of 13,543.67.
The BSE and NSE will extend their trading hours from today (24 September 2008) on account of disruption of satellite services due to sun outage. Trading will start as usual at 9.55 IST, but will be suspended between 11.25 IST and 12.10 IST. The day’s session will end at 16.15 IST. The new trading timing will be effective till 8 October 2008.
On Tuesday US Senate Foreign Relations Committee passed the Indo-US civilian nuclear deal with a majority of 19-2. With this first step is cleared and two steps are still pending as it is to be approved by House of Representatives.
On Tuesday, the US market closed lower due to nervousness about the proposed $700 billion bailout plan. There are concerns that congressional vote on proposed bailout may be delayed. However, crude oil for November delivery dropped $2.76 to settle at $106.61 on the New York Mercantile Exchange, after earlier touching the low of $104.05.
The Dow Jones Industrial Average (DJIA) closed down by 161.52 points at 10,854.17 followed by the NASDAQ index closed lower by 25.65 points at 2,153.33 and the S&P 500 (SPX) dropped by 18.87 points to close at 1,188.22.
Indian ADRs ended mixed. In technology sector, Satyam closed down by (6.38%) followed by Infosys by (4.76%), Patni Computers by (2.83%) and Wipro by (2.76%). In banking sector HDFC Bank and ICICI Bank gained (5.72%) and (0.78%). In telecommunication sector, MTNL and Tata Communication advanced by (5.37%) and (1.21%). Sterlite Industries plunged (0.80%).
Today the major stock markets in Asia are trading mixed. Hang Seng index is trading up by 295.73 points at 19,168.58 along with Singapore''s Straits rose 2.17 points at 2,478.68, while Japan''s Nikkei slipped 140.19 points at 11,950.40 and Taiwan Weighted trading at 6,146.11 plunged 36.10 points.
The FIIs on Tuesday stood as net buyer in equity and in debt. Gross equity purchased stood at Rs3,245.30 Crore and gross debt purchased stood at Rs232.50 Crore while the gross equity sold stood at Rs3,134.00 Crore and gross debt sold stood at Rs139.80 Crore. Therefore, the net investment of equity reported was Rs111.40 Crore and net debt was Rs92.60 Crore.
On Tuesday, the Indian rupee closed lower due to fall in local stocks and dollar demand from oil importers and arbitrageurs, to 45.73 per dollar against Monday''s close of 45.44/45. Earlier it opened at 45.36/37 and moved in a range of 45.36 and 45.70 in morning trade.
Today, Nifty has support at 4,043 and resistance at 4,215 and BSE Sensex has support at 13,276 and resistance at 13,882.
Daily Call - Sep 24 2008
Stocks are likely to get some respite from their usual clobbering, despite the US markets closing with losses. The markets are going to take notice of Warren Buffet picking up a stake in Goldman Sachs, an event that happened after the markets closed. While the amount $5 billion is not something to feel ecstatic about, but the fact that Buffet has dipped his toes into the troubled markets is something that may enthuse investors. The bail out package may also be cleared by the Congress later today in the US.
The bill regarding Indian Nuclear Deal was cleared by the Senate committee. It now needs the full Senate and Congress blessings. This should also improve sentiment but I doubt, the gains may sustain beyond a few sessions. The Nifty may recover but is unlikely to go beyond the 4225 mark. If it goes, buying the 4250 September Put may be a good idea. Power and capital goods may lead the pack.
Market may slide further (alt view)
The market is likely to remain under pressure following an drop in the US market in yesterday's trades and weakness among major Asian indices in the ongoing trades. Persisting offloading of equities from FIIs in the domestic market may also add pressure. Among the key local indices, the Nifty has a key support at 4100 and a slip below this level could see it test lower levels around 4050, while on the upside the index could test 4150. The Sensex has a likely support at 13400 and may face resistance at 13700.
US Market slumped on Tuesday as the heated debate in Congress on the proposed $700 billion bank bailout dampened hopes that the government would take faster action to mitigate the credit market crisis. While the Dow index plunged 162 points at 10854 the Nasdaq dropped 26 points to close at 2153.
Indian floats largely had a mixed outing on the US bourses. Satyam was the major loser and declined by above 6% followed by Infosys and Wipro, which lost 4.76% and 2.76% respectively. While Tata Motors ended with steady losses. Among the gainers, HDFC Bank & MTNL jumped over 5% each while Dr Reddy, Patni Computer, VSNL and ICICI Banks ended with steady gains.
Crude oil prices inched lower, with the Nymex light crude oil for November delivery slipping by $2.76 at $96.37 a barrel. In the commodity segment, the Comex gold for December series lost $17.80 to settle at $891.20 an ounce.
Market may edge higher
The market may edge higher after Warren Buffett's Berkshire Hathaway announced an infusion of $5 billion in Goldman Sachs Group. US stocks futures rose after the news which was announced after the US markets had closed on Tuesday, 23 September 2008. Goldman will sell $5 billion of preferred stock to Berkshire Hathaway, which will also receive warrants to purchase $5 billion of common stock with a strike price of $115 per share. Berkshire has five years to exercise the warrants.
Asian markets were mostly in the green today, 24 September 2008. Key benchmark indices in Hong Kong, Singapore, Taiwan and South Korea were up by between 0.26% to 1.3%. Key benchmark indices in Japan and China were down by between 0.9% to 2.2%.
US stocks fell on Tuesday, 23 September 2008, on fear that congressional wrangling could delay a proposed $700 billion plan to rescue the financial sector, increasing worries about the struggling US economy. The Dow Jones industrial average fell 161.52 points, or 1.47%, to end at 10,854.17. The Standard & Poor's 500 Index slid 18.87 points, or 1.56%, to 1,188.22. The Nasdaq Composite Index dropped 25.64 points, or 1.18%, to 2,153.34.
Meanwhile, a US-India civilian nuclear cooperation agreement moved closer to approval by Congress on Tuesday, 23 September 2008, when a key Senate Committee passed the deal with a landslide majority. However, the historic agreement is yet to clear a few hurdles in its final lap. The bill now goes to the floor of the Senate for the final ratification.
As per the provisional data released by the stock exchanges, foreign funds on Tuesday, 23 September 2008, sold shares worth a net Rs 924.40 crore. Domestic fund bought shares worth a net Rs 68.77 crore.
The September 2008 contracts expire on Thursday, 25 September 2008. Roll over in Nifty futures till Tuesday, 23 September 2008, was about 40%.
Meanwhile, trading on the bourses will be extended to 16:15 IST starting today due to Sun Outage. Trading will start as usual at 9:55 IST and close at 16:15 IST. On BSE, there will be no trading from 11:25 IST to 12:10 IST as there will be signal problems during this time
Trading Calls - Sep 24 2008
Nifty (4127) Sup 4080 Res 4210
Buy Chennai Petro (239) SL 234 Target 249, 251
Buy L&T (2531) SL 2510
Target 2570, 2580
Buy NTPC (179) SL 176
Target 187, 189
Buy Renuka (109) SL 106
Target 116, 118
Sell Sesa Goa (126) SL 130
Target 118, 116
Sun outage…aim for the stars!
Even a fool knows you can't touch the stars, but it doesn't stop a wise man from trying
Even as the US government is persuading its lawmakers to push through the $700bn bailout plan, comes news that investment guru Warren Buffett is pouring $5bn into the troubled Wall Street titan Goldman Sachs. The investment by Buffett's company Berkshire Hathway in Goldman is likely to act as further cushion to the battered US and global markets. Already, the effects of this news are visible, with US stock futures surging. Shares of Goldman and others of its ilk too have climbed in extended trading. Meanwhile, Japanese giant Nomura has picked up failed US investment bank Lehman Brothers' operations in Europe and the Middle East. Not all news is good though. Reports in the US say that the FBI has opened preliminary investigations into possible fraud involving Fannie Mae and Freddie Mac, Lehman Brothers and the American International Group (AIG).
In India, the bulls may yet again get caught in the whirlwind of the constant news flow emerging from the global markets, especially the US. We expect a cautious start amid anxiety and uncertainty over the US situation. However, given the intensity of the fall on Tuesday, a bounce-back is always on the cards. To add to the volatility, the sun outage (and the protracted session) will commence from today. We also have to contend with the F&O expiry tomorrow.
Inflation numbers will be announced on Thursday and in the next couple of weeks the latest earnings announcements. Overall, the market is likely to remain choppy and will trade in a range of a few hundred points (NSE Nifty). We would advise investors to stick to basics and catch the falling stars for brighter times ahead.
European markets didn't do well overnight and Asian markets are trading mixed this morning. While the Nikkei is down over 1% (it was shut on Tuesday), the Hang Seng is up over 1%. Meanwhile, crude oil is hovering around $107 per barrel.
US stocks slipped further on Tuesday with the Dow Jones Industrial Average back down below 11,000 amid concerns that White House' massive rescue package may get delayed in Congress. Some members of the Senate Banking Committee have expressed skepticism about Treasury Secretary Henry Paulson's plan.
In their testimony on Capitol Hill on Tuesday, both Paulson and Federal Reserve chief warned that the bailout plan must be cleared soon to avoid adverse effects on the US economy and the jobs market.
The US Congress is expected to announce a deal by the end of the week. But, one has to see how things progress on this front even as analysts warn that the credit crunch is going to become far more severe than anybody thought two weeks ago.
After triple-digit rises and declines during the session, the Dow Jones Industrial Average fell 161.51 points, or 1.5%, to end at 10,854.17, with all but three of its 30 components ending in the red.
The S&P 500 index dropped 18.87 points, or 1.6%, to end at 1,188.22, with energy and materials leading the losses that extended to all of the index's 10 industry groups. The Nasdaq was down 25.64 points, or 1.2%, at 2,153.34.
Oil futures slipped after soaring more than $16 in the previous session. Crude oil for November delivery closed at $106.61 a barrel on the New York Mercantile Exchange, down $2.76, or 2.5%, for the session.
Gold futures fell sharply, with the contract for December delivery off $17.80 to end at $891.20 an ounce on Nymex.
Treasury prices gained, sending yields lower, with the two-year note yields off 6 basis points to 2.076%.
The dollar pulled higher. The dollar index , which tracks the greenback against a trade-weighted basket of six major currencies, recently stood at 76.55 from 76.003 in North American trading late on Monday.
Paulson and Bernanke urged senators to quickly approve the plan to prop up the shell-shocked US financial system, saying that the failure to do so would risk the stability of financial markets and the economy.
Some critics on Capitol Hill likened the White House's hurried approach to the financial market crisis to its headlong plunge into the Iraq War
Economic officials and lawmakers are meeting this week in an attempt to hammer out an historic $700bn bank rescue plan that would get bad mortgage bets off bank balance sheets and ultimately loosen up the credit markets.
The move is seen as critical for the stability of the financial sector as the 15-month-old credit crisis stretches on.
US stocks rose in the morning, slipped in the afternoon, rallied again, and then sold off near the close. A selloff in oil, gold and other safe-haven commodities caused investors to bail out of the underlying stocks.
General Motors (GM) continued to slump on worries about its cash position. The stock fell 7.4% as investors continued to fear for its ability to raise capital amid the sluggish auto market.
Across the Atlantic, European shares declined, with banks under pressure yet again. The pan-European Dow Jones Stoxx 600 fell 1.9% to 267.31. The UK's FTSE 100 was down 1.9% at 5,136.12, while Germany's DAX 30 dropped 0.6% to 6,068.53 and the French CAC-40 slid 2% to 4,139.82.
In the emerging markets, the Bovespa in Brazil was down 3.8% to 49,593 while the IPC index in Mexico fell 0.45% to 24,969. Russia's dollar-denominated RTS stock index slipped 2.85% to 1,272 while the ISE National-30 index in Turkey was down nearly 2% at 44,069.
Global gloom to cloud sentiment
Markets extended losing streak to second straight trading session led by weak global cues and selling witnessed in the IT, realty and Capital Goods stocks. Index heavyweights like Infosys, ICICI Bank, HDFC and HDFC Bank. The BSE benchmark Sensex declined 424 points to close at 13,570 and the NSE Nifty index slipped 95 points to close at 4,126.
Among the 30 components of the Sensex 28 stocks ended in the red and only 2 stocks ended with positive bias. Infosys, ICICI Bank, HDFC and HDFC Bank were among the major laggards. Bucking the negative trend were, Tata Power and ACC.
Among the BSE Sectoral indices, BSE IT index (down 5.07%), BSE Realty index (down 4.6%), BSE Consumer Durable index (down 2.4%) and BSE Capital Goods index (down 2.2%). Even the Mid-Cap and the Small-Cap indices lost over 1.5% each.
NIIT Technologies gained by 1% to Rs95 after the company announced that it would offer Cargo handling solutions for Cathay Pacific.
The company would deliver cargo handling solution for Cathay Pacific at their new Cargo Terminal at Hong Kong International Airport. The scrip touched an intra-day high of Rs97 and a low of Rs93 and recorded volumes of over 79,000 shares on BSE.
Lanco Infratech announced that it won Rs3.1bn contract from the Andhra Pradesh Government. LITL slipped by over 7% to Rs208. The scrip touched an intra-day high of Rs223 and a low of Rs207 and recorded volumes of over 6,00,000 shares on BSE.
Shares of Panacea Biotec gained by 1.5% to Rs229 after 13.75 lakh equity shares of the company changed h ands at an average price of Rs228.5 on the BSE. The scrip touched an intra-day high of Rs234 and a low of Rs221 and recorded volumes of over 21,00,000 shares on BSE.
Moser Baer announced that its wholly owned photovoltaic (PV) subsidiary received in full the agreed capital injection of Rs4.15bn from a consortium of global investors to fund the capacity expansion of its high efficiency crystalline silicon and thin film solar verticals.
The Company had announced on September 4, 2008 had announced that it had signed definitive contracts with global investors, including Nomura, CDC Group, Credit Suisse, Morgan Stanley, IDFC PE, and IDFC.
This straight equity transaction values Moser Baer's PV business at over Rs63.50bn and the investors will be entitled to a 6.5% stake in the business.
Shares of Moser Baer had rallied by over 19% on Monday to close at Rs133.5. The stock ended at Rs122 down by 8.5% on the back of profit booking. The scrip touched an intra-day high of Rs137 and a low of Rs120 and recorded volumes of over 40,00,000 shares on BSE.
Punj Lloyd slipped towards the end losing 2% at Rs287. The stock had hit an intra-day high of Rs308 after the company announced that it secured an engineering, procurement, installation and commissioning contract worth Rs36.36bn from Qatar Petroleum. The scope of work includes laying of 211 km of pipeline with associated stations and infrastructure.
Tata Motors announces US$383mn H1 loss at JLR. (FE)
RIL may acquire discovered oil and gas assets abroad. (DNA)
US Committee on Energy and Commerce have asked US Secretary of State to provide details of AIDS drug supplied by Ranbaxy. (ET)
Punj Lloyd bags order worth US$800mn from Qatar Petroleum. (FE)
Cipla unveils Roche’s generic version of anti-infection drug, valganciclovir in India. (BS)
Sun Pharma gets US FDA nod to market generic Paraplatin Carboplatin injection. (DNA)
RNRL plans to invest Rs120bn in cement and shipping business in next three years. (DNA)
Reliance Power plans to enter alternate energy segment, to set-up a 100mw solar power plant. (DNA)
CESC plans to invest Rs240bn over the next four years to boost power generation capacity. (DNA)
Akruti, DLF and Reliance ADAG among others are eyeing commercial development of 45,371 sq. meters of railway land in Mumbai. (BL)
Power ministry approves allocation of gas to the power sector from RIL KG D6 block. (FE)
HPCL appeals to finance ministry for 10% interest rate ceiling on borrowings from public sector banks by the company. (FE)
BPCL in talks with Shell and LNG Petronet to source gas up to 2.5 mmscmd as an alternative to KG basin. (DNA)
Etisalat buys 45% stake in Swan Telecom for US$900mn. (ET)
Maruti Suzuki in talks with Haryana government to acquire land for expanding its R&D operations in India. (DNA)
GSPC arm plans to rope in IFC as an equity partner in the company. (DNA)
Videocon starts major restructuring by cutting down manufacturing location across the country, trimming work force and pruning its brand portfolio. (ET)
Tech Mahindra and TCS eyes Flextronics units. (ET)
Akruti has formalized JV with Gujarat government and NCDEX to re-develop bus terminal and warehousing facilities, respectively. (ET)
BPCL venture to invest Rs22bn in bio-diesel project. (BL)
Nagarjuna Construction secures four new orders worth Rs4.13bn. (BL)
Tata Elxsi signs a MoU with subsidiary of Samtech Group, a Belgium-based company. (BL)
Satyam Computer opens development center in Pune SEZ. (BL)
Alok Industries spin-off its retail operations into a new subsidiary under the name of Alok India Retail Ltd. (BL)
Sanwaria Agro to form a SPV in Latin America to invest in corporate farming of soybean and other oil seeds. (DNA)
Ion exchange in talks with three South African companies for an acquisition. (DNA)
Maruti Suzuki in talks with taxi union in Mumbai to sell Omni as a replacement to ageing Premier Padminis. (DNA)
Balaji Telefilms plans to start Hindi entertainment channel. (ET)
Future Group to launch slew of consumer goods ranging from chocolates to toothpaste. (BL)
Economy Front page
India GSM operators are likely to be charged Rs2.66bn per MHz of spectrum for all the 2G radio frequency they hold over 6.2MHz. (ET)
Employee Provident Fund Organization may withdraw Rs530bn invested in special deposit scheme if the finance ministry doesn’t agree to raise interest rate for the scheme. (ET)
Chairman of India Tea Association says 2009 tea season to see short-fall in output. (ET)
Private companies were able to produce only around 15% of their annual target set in the current Five-Year Plan period. (BS)
Government revives plan to take FIIs out of FDI sector limits. (BS)
SEBI chairman says no move to ban short selling in India. (BS)
Morning Call - Sep 24 2008
Market Grape Wine :
Out House:
Markets at a support of 13346 & 13452 and resistance at 13786 & 13989 levels .
Maintain strict stop loss as markets to be very choppy and volatile .
Buy : RIL
Buy : LNT & Bhel
Buy : HDFC Bank & SBIN
Buy : Glenmark & APIL
Buy : RelCap
Buy : NTPC
Buy : GtOffshore & Aban
Buy : ITC & HLL
Dark Horse : Areva , ITC , Ntpc , Bhel , LNT , SBIN , RIL , Aban
Gold Falls Below $ 900
US Still Not Decided On Bailout Plan
Gold for December expiry finished down $17.80 at $891.20 while Congress heard testimony from White House officials and may soon decide whether or not to give its support to the proposed $700 billion bailout plan. The U.S. dollar saw moderate strength against other major currencies on Tuesday in New York. The dollar edged higher against the euro and moved away from a recently-seen four-week low. In trading with the British pound, the dollar inched away from a monthly low with a mild afternoon rally. MCX Gold contract for October expiry was also quiet shaky in the intra day trades and closed the session at Rs 13013 per 10 grams up Rs 104.
Oil prices also fell on Tuesday as November took over as the front-month contract, further reducing gold's hedge value. Light sweet crude fell to $106.09, down $3.28 on the session. October crude oil finished above $120 a barrel on Monday as traders scrambled to collect oil on the final day of the contract.
Jet Airways - SELL
We recommend a sell in Jet Airways India from a short-term horizon. It is clearly visible from the charts of Jet Airways that after recording its life low at Rs 308 in early July the stock was on a medium-term uptrend till the September 8 high at Rs 567. On September 17, the stock conclusively penetrated the key support level Rs 500 and the medium-term up trendline by tumbling 9 per cent. Subsequently, the stock continued to decline breaching the 50-day moving average. The daily relative strength index (RSI) is featuring in the bearish zone and the weekly RSI has entered into this zone. Moreover, the daily moving average convergence and divergence has entered the negative territory.
Our short-term forecast for the stock is bearish. We expect the stock’s current downtrend to prolong until it hits our price target of Rs 375 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 440.
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