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Friday, September 26, 2008
BSE Bulk Deals to Watch - Sep 26 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
26/9/2008 515055 ANANT RAJ IN DEUTSCHE SECURITIES MAURITIUS LIMITED B 8541305 118.00
26/9/2008 515055 ANANT RAJ IN MORGAN STANLEY MAURITIUS COMPANY LIMITED S 8541305 118.00
26/9/2008 519532 ASIAN TEA EX VHM IMPEX PRIVATE LTD S 55983 109.02
26/9/2008 513059 G.S. AUTO HARDIK M MITHANI B 75200 80.85
26/9/2008 513059 G.S. AUTO SPJSTOCK B 112378 80.08
26/9/2008 513059 G.S. AUTO HARDIK M MITHANI S 25338 80.52
26/9/2008 513059 G.S. AUTO SPJSTOCK S 130439 80.61
26/9/2008 526727 GARNET CONST JAYSHREE JHAMATMAL PARIYANI B 45804 23.54
26/9/2008 531439 GOLDSTON TEC HEMANT MADHUSUDAN SHETH B 193000 114.83
26/9/2008 531439 GOLDSTON TEC BHAVESH PRAKASH PABARI S 100000 115.00
26/9/2008 532636 IND INFOLINE CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD B 500000 97.05
26/9/2008 512237 JAI CORP LIM DEUTSCHE SECURITIES MAURITIUS LIMITED B 5704919 288.95
26/9/2008 512237 JAI CORP LIM MORGAN STANLEY MAURITIUS COMPANY LIMITED S 5704919 288.95
26/9/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD B 29065 38.38
26/9/2008 532629 MCNALLY BHA IDFC SMALL MIDCAP EQUITYSME FUND B 500000 102.00
26/9/2008 532629 MCNALLY BHA TEMPLETON MUTUAL FUND A C FRANK FUND 11624 S 224650 102.01
26/9/2008 532629 MCNALLY BHA TEMPLETON MUTUAL FUND A C FRANKLIN INDIA PRIMA FUND 4615 S 277749 102.01
26/9/2008 590060 MK EXIM NARENDRA VALLABHJI BAHUVA S 21194 30.60
26/9/2008 532045 NEXXOFT INFO MANOJ H.MEHTA B 27831 35.74
26/9/2008 532045 NEXXOFT INFO HARSHA HARESH CHHATBAR S 38000 35.75
26/9/2008 531996 ODYSSEY CORP UDAYKUMAR P. SHAH B 25000 33.85
26/9/2008 531996 ODYSSEY CORP KIRIT V DAVE B 25000 32.77
26/9/2008 531996 ODYSSEY CORP UDAYKUMAR P. SHAH S 25000 34.20
26/9/2008 531996 ODYSSEY CORP TAMMANSA D KATWA S 26500 34.79
26/9/2008 531996 ODYSSEY CORP KATWA KANCHANMALA T S 26500 34.56
26/9/2008 531769 PFL INFOTECH KAUSHAL ASHWINKUMAR KANSARA B 25000 12.17
26/9/2008 531769 PFL INFOTECH BABULAL RANARAM GHANCHY B 27576 12.37
26/9/2008 531769 PFL INFOTECH KETAN C DELAVALA B 25000 12.17
26/9/2008 531769 PFL INFOTECH VISHU ENTERPRISE S 34193 12.18
26/9/2008 531769 PFL INFOTECH KAUSHAL ASHWINKUMAR KANSARA S 25000 12.20
26/9/2008 531769 PFL INFOTECH BABULAL RANARAM GHANCHY S 44898 12.19
26/9/2008 531769 PFL INFOTECH KETAN C DELAVALA S 25000 12.17
26/9/2008 503100 PHOENIX MILL DEUTSCHE SECURITIES MAURITIUS LIMITED B 930159 146.00
26/9/2008 532486 POKARNA LTD MERRILL LYNCH CAPITAL MARKETS ESPANA SA SV S 296680 76.99
26/9/2008 503873 PRIYA SPIN L PRADEEP KUMAR AGARWAL B 83841 9.35
26/9/2008 503873 PRIYA SPIN L ARVIND KUMAR AGGARWAL S 83841 9.35
26/9/2008 520086 SICAL LOG THE ROYAL BANK OF SCOTLAND PLC AS TRST OF JUPITER INDIA FUND B 200000 65.00
26/9/2008 532669 SOUTHBIOTEC MACKERTICH CONSULTANCY SERVICES PVT. LTD. B 175000 17.35
26/9/2008 532669 SOUTHBIOTEC TRICOLOUR INDIA OPPORTUNITIES FUND S 177546 17.35
26/9/2008 521161 SRI LAKS SAR BALAJI INVESTMENT S 20000 16.14
26/9/2008 532619 UTV SOFTWARE ARROW WEBTEX LTD S 200000 765.00
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NSE Bulk Deals to Watch - Sep 26 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
26-SEP-2008,KOHINOOR,Kohinoor Foods Limited,VENTURE BUSINESS ADVISORS PVT LTD,BUY,166214,125.63,-
26-SEP-2008,PSTL,Pyramid Saimira Theatre L,DKG SECURITIES PVT. LTD.,BUY,154769,110.50,-
26-SEP-2008,APTECHT,Aptech Limited,CREDIT SUISSE (SINGAPORE) LIMITED A/C CREDIT SUISSE (SINGAPO,SELL,321539,152.44,-
26-SEP-2008,PSTL,Pyramid Saimira Theatre L,DKG SECURITIES PVT. LTD.,SELL,130372,112.01,-
26-SEP-2008,SINTEX,Sintex Industries Ltd.,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,715000,275.00,-
Selling spree continues
The bear hammering continued unabated in the market, with the index crashing below the 13,000 level amid weakness in global indices, slump in the overseas commodities markets and continuing exodus of foreign institutional investment (FII) money from the domestic markets. Keeping with its southward journey, the Sensex started the day with a negative gap of 65 points at 13,482 and shed another 428 points to slip below the 13,000 level in the early trades to touch the day's low of 13,054. The market however moved above 13,200 for the better part of the session with a negative bias. Sustained selling pressure towards the close saw the Sensex slump below 13,100 and end 3.28% or 445 points lower at 13,102, while Nifty dropped 125 points at 3,985.
The breadth of the market was extremely negative. Of the 2,673 stocks traded on the BSE, 2,169 stocks declined, while only 445 stocks advance. 59 stocks remained unchanged. Among the sectoral indices, the BSE FMCG ended positive while other indices fell around 0.96% each. The BSE Realty was the major loser and crumbled by 6.33% followed by BSE Metal (down 4.76%), BSE Bankex (down 4.27%), BSE CG (down 4.10%), BSE Power (down 3.47%) and BSE IT (down 3.39%).
Barring State Bank of India, ITC, Hindustan Unilever and ACC, the remaining 27 Sensex stocks ended in a negative territory. Sliding sharply Ranbaxy Laboratories crumbled by 8.04% at Rs272.40, Sterlite industries plunged 6.28% at Rs447.20, ICICI Bank dropped 5.83% at Rs561.25, Grasim Industries slumped by 5.72% at Rs1760.50, Hindalco declined by 5.17% at Rs99.10, Mahindra & Mahindra shed 5.06% at Rs530.50, BHEL fell by 5.03% at Rs1538.20 and DLF lost 5.01% at Rs369.50. Other front-line stocks also bore the brunt of the selling pressure and declined around 2-3% each.
Over 96.73 lakh shares of IFCI changed hands on the BSE followed by Reliance Natural Resources (87 lakh shares), Anant Raj Industries (85 lakh shares), Sesa Goa (82 lakh shares) and Idea Cellular (65 lakh shares).
Post Session Commentary - Sep 26 2008
Domestic markets witnessed sharp cut during final trading hours to close in deep red as there are large differences between Democrats and Republicans in US about the Bush Administration''s $700 billion rescue plan for the financial sector. Sentiments also dented by the failure of Washington Mutual Fund, which was acquired by JPMorgan Chase yesterday. JPMorgan Chase & Co. Inc. acquired the assets of Washington Mutual Inc.''s banking operations after federal regulators seized the ailing thrift. Under the terms of the deal, J.P. Morgan acquired all of the deposits and assets of Washington Mutual and its subsidiary Washington Mutual FSB, valued at $307 billion in assets and $188 billion in deposits.
The markets opened on down beat note and continued to exhibit weakness on the bourses. Further, Markets extended its losses to more than 3% as selling pressure intensified across the counters. Finally, US bailout delay pulled the market in extremely negative territory. BSE Sensex ended around 13,100 level and NSE Nifty closed below 4,000 mark. From the sectoral front, Reality index under performed the bench mark index as witnessed deep cut of more than 6%. Along with that, huge sell of was also witnessed in Metal, Capital Goods, Bank, Oil & Gas, Capital Goods and IT stocks. However, FMCG stocks were in limelight as witnessed buying form its baskets. The market breadth was extremely negative as 2172 stocks closed in red while 442 stocks closed in green and 59 stocks remained unchanged.
The BSE Sensex closed lower by 445.00 points at 13,102.18 and NSE Nifty ended down by 125.30 points at 3,985.25. The BSE Mid Caps and Small Caps closed with losses of 152.23 points at 4,940.82 and by 188.25 points at 5,861.78. The BSE Sensex touched intraday high of 13,486.20 and intraday low of 13,054.42.
WPI based inflation rate for the week ended 13th September 2008, was remain unchanged at 12.14% at the same level recorded a week earlier. Inflation remains unchanged even as the Finance Ministry said prices of essential items like cereals, pulses, sugar and edible oils declined on weekly basis.
Losers from the BSE are Ranbaxy Lab (8.04%), Ranbaxy Lab (4.70%), Sterlite Indus (6.28), ICICI Bank Ltd (5.83%), Grasim Indus (5.72%), Hindalco (5.17%), M&M Ltd (5.06%), BHEL (5.03%), DLF Ltd (5.01%), Tata Steel (4.88%) and Reliance Com Ltd (4.83%).
The BSE Metal index plunged 475.01 points to close at 9,502.09. Major losers are Gujarat NRE C (9.66%), Jindal Steel (7.25%), Sterlite Indus (6.28), Steel Authority (5.84%), Hincalco (5.17%) and Ispat Indus (5.06%).
The BSE Capital Goods index lost 461.94 points to close at 10,795.19. Major losers are Praj Indus (7.16%), Punj Lloyd (6.86%), Reliance Industrial Infra (6.47%), Siemens Ltd (6.33%), Usha Martin (5.84%) and Walchand In (5.12%).
The BSE Bank index dropped by 292.93 points to close at 6,570.54. As Indian Overseas Bank (7.72%), IDBI Bank Ltd (6.11%), ICICI Bank Ltd (5.83%), Canara Bank (4.32%), HDFC Bank Ltd (4.05%) and Punjab national Bank (4.03%) closed in negative territory.
The BSE Oil & Gas index ended down by 282.58 points at 9,081.43 as Aban Offshore (9.63%), Reliance Natural Resources (5.25%), Essar Oil Ltd (3.82%), ONGC Ltd (3.37%), Cairn India (2.69%) and Reliance Petr (2.45%) ended in negative territory.
The BSE Reality index closed lower by 243.23 points at 3,596.98. Losers are Akruti City (16.74%), Housing Development (8.47%), Unitech Ltd (8.03%), Anant Raj (7.95%), Orbit Co (7.77%) and Ansal Infra (7.47%).
The FMCG index gained 20.79 points to close at 2,189.07. As REI Agro Ltd (5.00%), Colgate Palm (2.41%), Dabur India Ltd (2.30%), ITC Ltd (2.04%) and HUL (1.18%) closed in positive territory.
Indian stocks may continue to be influenced by movements in global indices amid impasse over the proposed $700 billion bailout deal for the US financial sector. Sustained selling by foreign institutional investors will weigh on the domestic bourses.
The US Congress on Thursday, 25 September 2008 struggled to find agreement on modifying the Bush proposal to attack the housing market crisis. The Bush administration, on 19 September 2008, proposed a $700 billion financial rescue package, aimed at staving off the collapse of the US financial system. Meanwhile, a group of conservative Republican lawmakers proposed an alternative mortgage insurance plan.
A financial crisis engulfed the global markets earlier this month with the US investment banking giant Lehman Brothers filing for bankruptcy, Merrill Lynch being bought over by the Bank of America and the US government bailout of American Insurance Group (AIG) for $85 billion in turn of 80% stake.
The market sentiment has been badly hit by a sustained selling by foreign institutional investors (FIIs). They have been pulling out their investments from India and other emerging markets to shore up resources to beat the global liquidity crunch. In India, FIIs sold shares worth a net Rs 8,061 crore (till 25 September 2008). FII outflow reached Rs 36,574.90 crore in calendar 2008.
Meanwhile, the odds of the US-India civil nuclear cooperation agreement being approved by the US Congress improved on Thursday, 25 September 2008, when a key lawmaker embraced a bill to end the three-decade ban on nuclear trade with India. House of Representatives Foreign Affairs Committee Chairman Howard Berman introduced a bill to approve the deal identical to Senate legislation, dropping his own competing version and eliminating any need to reconcile the two.
Q2 September 2008 results is the next major trigger for the market. IT bellwether Infosys Technologies will kickstart the earnings season when it unveils its Q2 September 2008 results on 10 October 2008. Analysts opine that with the dollar appreciating sharply against other currencies, including the euro and the pound, most IT pivotal may miss their dollar revenue guidance. Foreign brokerage CLSA said in its recent research note to clients that Infosys may not be able to meet its dollar guidance for the second quarter and the full fiscal.
Derivative contracts for September 2008 series expired on Thursday, 25 September 2008, with lower rollovers. As per reports, marketwide rollover of positions from September 2008 series to October 2008 series declined to 76% as against 83% seen in previous expiry. Similarly Nifty rollover was also lower at 63% as compared to 75% seen in last expiry.
On the macro-economic front, inflation based on the wholesale price index rose 12.14% in 12 months to 13 September 2008, unchanged from the previous week's annual rise, government data released on Thursday, 25 September 2008, showed. Yet further monetary tightening by the Reserve Bank of India (RBI) cannot be ruled out as inflation is way above its target level of 7% towards the year ending March 2009.
The sharp fall in oil prices from a record high of $147.27 a barrel struck on 11 July 2008 augurs well for the global economy. NYMEX crude for November 2008 delivery was hovering at $106.70 a barrel on Friday, 26 September 2008, after falling to sub $90 a barrel earlier this month.
Market tanks on uncertainty over US bailout deal
Key benchmark indices suffered a sever setback mirroring weak global imarket and amid impasse over the proposed $700 billion bailout deal for the US financial sector. Sustained selling by foreign institutional investors weighed on the market sentiment. The market posted losses in four out of five trading sessions. The S&P CNX Nifty fell below the psychological 4,000 level. Among index pivotals Ranbaxy Laboratories and Hindalco Industries hit 52-week lows on BSE.
A financial crisis engulfed the global markets earlier this month with the US investment banking giant Lehman Brothers filing for bankruptcy, Merrill Lynch being bought over by the Bank of America and the US government bailout of American Insurance Group (AIG) for $85 billion in turn of 80% stake.
On Thursday, 25 September 2008, JPMorgan Chase acquired the banking assets of Washington Mutual after the troubled thrift was seized by federal regulators, marking the biggest bank failure in the United States.
The barometer index BSE Sensex lost 940.14 points or 6.69% to settle at 13,102.18 in the week ended Friday, 26 September 2008. The S&P CNX Nifty shed 260 points or 6.12% at 3985.25 in the week.
The BSE Mid-Cap index lost 287.96 points or 5.50% to 4,940.82 in the week ended Friday, 26 September 2008. The BSE Small-Cap index slipped 354.21 points or 5.69% to 5,861.78 in the week.
The BSE Sensex is down 7184.84 points or 35.41% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 8104.59 points or 38.21% below its all-time high of 21,206.77 struck on 10 January 2008.
Trading for the week started on a subdued note as rise in oil prices weighed on the market sentiments on Monday, 22 September 2008. The BSE 30-share Sensex fell 47.36 points or 0.34% to 13,994.96 and the S&P CNX Nifty fell 22.20 points or 0.52% to 4223.05, on that day.
Key benchmark indices suffered sharp losses on Tuesday, 23 September 2008, mirroring fall in global stocks on uncertainty about the potency of the US government's $700 billion bank bailout. The BSE 30-share Sensex was down 424.65 points or 3.03% to 13,570.31 and the S&P CNX Nifty fell 96.15 points or 2.28% to 4,126.90, on that day.
Domestic bourses saw a relief rally on Wednesday, 24 September 2008, posting decent gains to snap two-day losses. The BSE 30-share Sensex rose 122.21 points or 0.9% to 13,692.52 and the S&P CNX Nifty gained 34.35 points or 0.83% to 4,161.25, on that day.
On Thursday, 25 September 2008, key benchmark indices ended volatile session in the red. The BSE 30-share Sensex shed 145.34 points or 1.06% to 13,547.18 and the S&P CNX Nifty was down 50.70 points or 1.22% to 4110.55, on that day.
Indices tumbled on Friday, 26 September 2008, as Washington Mutual's failure and uncertainty over the fate of the US government's $700 billion rescue plan for the financial sector haunted investor sentiment. First-time jobless claims in the US rose to their highest count in seven years pointing to a slow down. The BSE 30-share Sensex lost 445 points or 3.28% to 13,102.18 and the S&P CNX Nifty fell 125.30 points or 3.05% to 3,985.25, on that day.
Foreign institutional investors FIIs have been consistently pressing sales to pull out their investments from India and other emerging markets in an attempt shore up resources to beat the global liquidity crunch. In India, FIIs sold shares worth a net Rs 8,061 crore (till 25 September 2008). FII outflow reached Rs 36,574.90 crore in calendar 2008.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) lost 4.43% at Rs 1960.90. Reliance Industries (RIL) began production of crude oil at KG-D6 block of the Krishna Godavari basin on 17 September 2008, the company said on 22 September 2008. RIL holds 90% participating interest in the block while the balance is being held by Niko Resources.
Sterlite Industries (India) fell 4.36% to Rs 447.20. The company’s parent Vedanta Resources dropped a restructuring plan. As per a restructuring plan proposed earlier, the Vedanta group was to create three units focused on commodities: copper, zinc and lead; aluminium and energy; and iron ore.
India’s largest drug maker by sales Ranbaxy Laboratories tumbled 23.67% at Rs 272.40 on reports the Canadian drug regulator, Health Canada, issued a notice to Ranbaxy saying it will be particularly cautious about drug marketing applications from Ranbaxy after the US drug regulator blocked the sale of more than 30 generic medicines made in two factories by the company. The stock hit a 52-week low of Rs 269.05 on 26 September 2008.
Banking shares were hard hit on fears local banks may reportedly suffer losses on their exposure to the US financial giants that collapsed recently. ICICI Bank (down 10.64% at Rs 561.25), HDFC Bank (down 4.12% at Rs 1245.70), and State Bank of India (down 8.33% at Rs 1434.20), dipped.
Real estate heavyweights were not spared either. India’s largest real estate developer in terms of market capitalisation DLF lost 13.45% to Rs 369.50. Unitech, the country’s second largest real estate developer in terms of market capitalisation fell 30.59% to Rs 111.05, after sliding to a 52-week low of Rs 109.10 on 26 September 2008.
India's largest aluminium producer Hindalco Industries slipped 12.19% at 99.10 after hitting a 52-week low of Rs 98.50 on 26 September 2008. The company's Rs 5,050 crore rights share offering for subscription Monday, 22 September 2008. The sale in a ratio of three shares for every seven held at Rs 96 a share will close on 10 October 2008. The company aims to use the funds to repay a bridge loan it had taken to buy Canada's Novelis in 2007.
Software firms fell on lingering concerns about the economic prospects for the United States, their biggest export market. Satyam Computer (down 13.01% to Rs 321.95), Infosys Technologies (down 10.85% to Rs 1447.10), Wipro (down 17.54% to Rs 343.75), slipped. India’s largest software exporter by sales TCS lost 11.69% at Rs 676.45 after hitting a 52-week low of Rs 666.20 on 26 September 2008.
India's largest state-run oil explorer Oil & Natural Gas Corporation (ONGC) dropped 3.45% to Rs 1035.10. As per reports, ONGC Videsh (OVL), the overseas investment arm of ONGC, may take a $1 billion short-term loan to partly fund the $2.8 billion acquisition of London Stock Exchange-listed Imperial Energy.
Inflation remained steady, the latest data showed. Inflation based on the wholesale price index rose 12.14% in 12 months to 13 September 2008, unchanged from the previous week's annual rise, government data released after trading hours on Thursday, 25 September 2008, showed. Inflation for the week ended 19 July 2008 was revised upwards to 12.54% from 11.98%.
On 22 September 2008 the Indian government eased overseas borrowing rules for infrastructure companies, increasing the amount they can bring in to $500 million from $100 million. The ceiling on borrowing by infrastructure firms has been raised to $500 million a year from the exiting $100 million a year.
Nifty falls below 4,000
Stocks fell sharply today, ending a lackluster week of trading mired in uncertainty about the future of the US financial system. The BSE 30-share Sensex fell 445 points. Wary investors continued to unload shares across-the-board as news of the biggest ever US bank failure compounded the bearish sentiments, with the US government brokering a last-ditch purchase of thrift Washington Mutual by JPMorgan. The S&P CNX Nifty fell below the psychological 4,000 level.
Realty, metal and banking stocks slumped. Export-driven information technology stocks extended recent fall.
Weak US economic data also weighed on market sentiments. Data released overnight showed US-made durable goods fell 4.5% in August 2008, while sales of new homes in the US dropped 11.5% during the month. First-time jobless claims in the US rose to their highest count in seven years pointing to a slow down.
European stocks posted a steep decline as uncertainty persisted over the $700 billion US financial sector bailout plan. Key indices in UK, France and Germany were down 2.07% to 2.12%. Asian market, which opened before Indian market, ended in red. Key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan were down by between 0.16% to 2.16%.
The BSE 30-share Sensex fell 445 points or 3.28% to 13,102.18. The index shed 492.76 points at the day’s low of 13,054.42 at the fag end of the trade. It was down 60.98 points at day’s high of 13,486.20, hit at the onset of trading session.
The S&P CNX Nifty was down 137.10 points or 3.34% to 3985.25. Nifty October 2008 futures were at 3984.50, at a discount of 0.75 points as compared to spot closing.
The BSE Mid-Cap index fell 2.99% at 4,940.82 and the BSE Small-Cap index fell 3.11% at 5,861.78. Both the indices outperformed the Sensex.
The market breadth was poor on BSE with 442 shares advancing as compared to 2172 that declined. 59 shares remained unchanged.
BSE clocked a turnover of Rs 4835 crore as against Rs 5,070.61 crore on Thursday, 25 September 2008. NSE's futures & options (F&O) segment turnover was Rs 44297.14 crore, which was almost half of Rs 82697.69 crore on Thursday, 25 September 2008.
Pre Session Commentary - Sep 26 2008
The Market is expected to have negative opening as Asian markets are trading lower along with negative news from the US markets about the failure of Washington Mutual Fund, which was acquired by JPMorgan Chase yesterday. JPMorgan Chase & Co. Inc. acquired the assets of Washington Mutual Inc.''s banking operations Thursday after federal regulators seized the ailing thrift. The deal will cost JPMorgan Chase $1.9 billion. Under the terms of the deal, J.P. Morgan acquired all of the deposits and assets of Washington Mutual and its subsidiary Washington Mutual FSB, valued at $307 billion in assets and $188 billion in deposits. Also, the talks about US governments’ financial sector bailout plan stalled in Washington.
On Thursday, the Indian markets closed in downbeat note on F&O expiry day for September. Markets also hit by concern over US governments’ $700 billion financial sector bailout plan. Domestic markets opened marginally higher but lost ground soon after start to trade below dotted line. Further, weakness continued to prevail over the markets on inflation worries. Though markets struggled to recover but profit booking led the markets to end the day in losses. BSE Sensex ended below 13,600 level and NSE Nifty closed below 4,150 mark. From the sectoral front, Metal, Reality, Oil & Gas, Capital Goods, IT and Pharma stocks contributed to most of the selling pressure. Mid Cap and Small Cap stocks also remained in bear grip. However, Auto stocks ended almost flat as witnessed some buying form its baskets. We expect that the market remain volatile during the trading session.
The BSE Sensex closed lower by 145.34 points at 13,547.18 and NSE Nifty ended down by 50.70 points at 4,110.55. The BSE Mid Caps and Small Caps closed with losses of 33.73 points at 5,093.05 and by 51.48 points at 6,050.03. The BSE Sensex touched intraday high of 13,716.88 and intraday low of 13,430.68.
Inflation for the week ended 13th September 2008, was remain unchanged at 12.14% at the same level recorded a week earlier. According to economists, inflation is stabilizing around this level before it starts to fall. Inflation remains unchanged even as the Finance Ministry said prices of essential items like cereals, pulses, sugar and edible oils declined on weekly basis.
September series of derivative contract expired on Thursday. The rollover was 62.56% in Nifty, which is lower than past three months average of 70.14%. In absolute terms also the rollover of 2.73 crore shares is much lower than the past three months average 3.21 crore shares.
On Thursday, the US market snapped a three day losing streak and closed in green as investors were confident of Congressional approval for bailout plan. Crude oil for November delivery raised $2.29 to $108.02 a barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed up by 196.89 points at 11,022.06 along with NASDAQ index closed higher by 30.89 points at 2,186.57 and the S&P 500 (SPX) gained 23.31 points to close at 1,209.18
Indian ADRs ended up. In technology sector, Wipro closed up by (5.39%) followed by Satyam by (3.20%), Infosys ended higher by (1.66%) and Patni Computers by (0.59%). In banking sector HDFC Bank gained (0.72%), while ICICI Bank lost (1.12%). In telecommunication sector, Tata Communication and MTNL surged (16.94%) and (4.96%). Sterlite Industries increased by (1.57%).
Today the major stock markets in Asia are trading lower despite gains on Wall Street overnight, over the uncertainty as there are deep divisions between Democrats and Republicans in US about the Bush Administration''s $700 billion rescue plan for the financial sector. Hang Seng index is trading down by 187.27 points at 18,747.16. Followed by, Taiwan Weighted dropped by 132.56 points at 5,928.27, Japan''s Nikkei slipped 23.19 points at 11,983.34 and Singapore''s Straits trading at 2,422.92 plunged 21.32 points.
The FIIs on Thursday stood as net seller in equity and net buyer in debt. Gross equity purchased stood at Rs3,505.60 Crore and gross debt purchased stood at Rs258.60 Crore while the gross equity sold stood at Rs3,680.00 Crore and gross debt sold stood at Rs116.80 Crore. Therefore, the net investment of equity reported was (Rs174.40) Crore and net debt was Rs141.90 Crore.
The BSE and NSE trading will remain suspend between 11.25 IST and 12.10 IST due to the sun outage. The day’s session ended at 16.15 IST. The new trading timing is effective till 8 October 2008.
On Thursday, the partially convertible rupee closed to its lowest in a week as loss in stock market fueled concern for capital outflow and due to the two-day nationwide strike by bank unions. Indian rupee ended at 46.21/22 per dollar, 0.5% weaker than 45.95/96 at close on Wednesday. It fell to the low of 46.30 during the trade.
On BSE, total number of shares traded was 22.49 crores and total turnover stood at Rs5070.61 crores. On NSE, total volume of shares traded was 61.37 crores and total turnover was Rs 15311.01 crores.
Top traded volumes on NSE Nifty – Suzlon Energy with total volume traded 14417116, followed by NTPC with 12831889, Reliance Petro with 12829529, ICICI Bank with 12103191 and Reliance Power with 10740865.
On NSE Future and Options, total number of contracts traded in index futures was 1159748 with a total turnover for the same was Rs 22788.38 crores. Along with this total number of contracts traded in stock futures was 1686501 with a total turnover of Rs 27584.52 crores. Total number of contract for index options was 1467767 and total turnover was Rs 3119.09 crores and total number of contracts for stock options was 66583 and notional turnover was Rs 1205.7 crores.
Today, Nifty has support at 4,008 and resistance at 4,199 and BSE Sensex has support at 13,162 and resistance at 13,859.
Market may remain volatile
After witnessing a sharp intra-day volatile trend due to lack of clarity may see the market remain edgy and move on the either side of the zone. Ongoing negative trend at the Asian markets and rise in crude oil prices could drag down the local indices in early trades. The Nifty could test higher levels at 4150 and may find supports at 4070 or 4040, while the Sensex has a likely support at 13400 and may face resistance at 13700.
US indices rallied Thursday on news that a group of key lawmakers have essentially agreed on terms of the $700 billion bank bailout plan, following days of heated debate. The Nasdaq advanced 31 points to 2187, the Dow Jones was up 197 points at 11022.
All of the Indian ADRs traded firm on the US bourses except ICICI Bank. VSNL led the pack with gains of 16.94% followed by Rediff oared by 6.05% and Wipro advanced 5.39%. While MTNL, Satyam, Infosys and Dr Reddy gained around 1-4% each. However, Tata Motors, HDFC Bank and Patni Computers ended with marginal gains.
Crude oil prices in the overseas market gained with the Nymex light crude oil for October series advanced by $2.29 to close at $108.02 a barrel and in the commodity space, the Comex gold for December delivery lost by $13 to settle at $882 respectively.
Market may track weak Asian stocks
The market may edge lower tracking weakness in Asian stocks as a proposed $700 billion bailout deal for the US financial sector stalled in Washington. The market sentiment has been hit by a sustained selling by foreign institutional investors.
Key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan were down by between 0.6% to 2.4%.
The US Congress struggled to find agreement on modifying the Bush proposal to attack the housing market crisis. The Bush administration, last week, proposed a $700 billion financial rescue package, aimed at staving off the collapse of the US financial system. Meanwhile, a group of conservative Republican lawmakers proposed an alternative mortgage insurance plan.
In a major development, JPMorgan Chase acquired the banking assets of Washington Mutual late on Thursday, 25 September 2008, after the troubled thrift was seized by federal regulators, marking the biggest bank failure in the United States and the latest stunning twist in the ongoing credit crisis.
A deep financial crisis engulfed the global markets last week when the US investment banking giant Lehman Brothers filed for bankruptcy, Merrill Lynch was bought over by Bank of America in a distress sale and the world's largest insurer AIG had to seek US government help to thwart an imminent collapse. Early this week Goldman Sachs Group Inc and Morgan Stanley became bank holding companies after investors last week lost confidence in their freewheeling, high-risk broker model.
Back home, inflation remained steady, the latest data showed. Inflation based on the wholesale price index rose 12.14% in 12 months to 13 September 2008, unchanged from the previous week's annual rise, government data released after trading hours on Thursday, 25 September 2008, showed. Inflation for the week ended 19 July 2008 was revised upwards to 12.54% from 11.98%.
As per provisional data released by the stock exchanges, foreign funds sold shares worth a net Rs 1050.38 crore on Thursday, 25 September 2008. Domestic funds bought shares worth a net Rs 605.59 crore.
Foreign institutional investors (FIIs) have been pulling out their investments from India and other emerging markets to shore up resources to beat the global liquidity crunch. In India, FIIs sold shares worth a net Rs 7357.20 crore this month (till 24 September 2008). The outflow has reached Rs 35871 crore in calendar year 2008.
Meanwhile, the odds of the US-India civil nuclear cooperation agreement being approved by the US Congress improved on Thursday, 25 September 2008, when a key lawmaker embraced a bill to end the three-decade ban on nuclear trade with India. House of Representatives Foreign Affairs Committee Chairman Howard Berman introduced a bill to approve the deal identical to Senate legislation, dropping his own competing version and eliminating any need to reconcile the two
Inflation unchanged at 12.14%
Inflation for week ended 19 July 2008 revised upwards to 12.54% from 11.98%
Inflation based on the wholesale price index rose 12.14% in 12 months to 13 September 2008, unchanged from the previous week's annual rise, government data released today, 25 September 2008, evening showed.
Inflation for the week ended 19 July 2008 was revised upwards to 12.54% from 11.98%.
Morning Call - Sep 26 2008
Market Grape Wine :
In House:
Nifty at a support of 4055 and 3980 with resistance at 4130 and 4175 levels.
Cash: Buy RIL above 2062 target 2110 with S/L 2040.
Cash: Buy RPL above 152.50 targets 158 with S/L 149.50.
Future: Buy RPOWER above 162 targets 175 with S/L 156.
Future: Sell BAJAJ HIND below 123 targets 111 with S/L 128.
Out House:
Markets at a support of 13446 & 13254 and resistance at 13686 & 13868 levels .
Buy : RIL
Buy : LNT
Buy : SBIN
Buy : Kohinoor
Buy : RelCap
Buy : Akruti
Buy : HP & BPCL at dips
Buy : ITC
Buy : Coreproject
Dark Horse : LNT , SBIN , RIL , BPCL & Bhel
TGIF : Thank God Its Friday : Markets consolidating buy low sell high call for the day .
Pantaloon Retail - SELL
We recommend a sell in Pantaloon Retail India from a short-term perspective. From the charts of the Pantaloon Retail we observe that it has been on a long-term term downtrend from its all-time high of Rs 875, marked in January. The stock has been recording lower peaks and troughs since this peak. On September 15, the stock decisively penetrated the support level Rs 325 by tumbling almost 5 per cent with heavy volume. There was yet another sharp 6 per cent decline in the stock on September 25, with above average volume. The daily and weekly relative strength indices are hovering in the bearish zone. The moving average convergence and divergence is declining in line with the stock price, in negative territory. We are bearish on the stock from a short-term horizon. We anticipate Pantaloon Retail to decline further until it hits our price target of Rs 246 in the forthcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 288.
Precious Metals Open On A High Note Still Close In Red
Greenback On Weak Footing Against Majors
Gold rose $6.95 to $896.55 in Asia on Thursday before it fell to $863.10 by late morning in New York on news the US financial bail-out package is almost agreed. The prices then rallied $13.10 in the last couple of hours of trade but still ended with a loss of 1.57% for the session.
The greenback continued to trade on weak footing against the majors, mired beneath the 106-level versus the yen and trading near 1.4675 against the euro as the Bush Administration $700 billion bailout plan encountered gridlock in Congress. Amid the ongoing financial turmoil, markets will pay close attention to the results of the Congressional deliberations on the rescue plan in the coming days.
Further increasing the selling pressure on the dollar was earlier reports of the largest bank failure in US history, when it was announced that the assets of Washington Mutual was seized by the government on grounds that it had insufficient liquidity. JP Morgan Chase agreed to acquire Washington Mutual $1.9 billion in deposits.
Reports from the US reinforced the dire state of the economy, with new home sales down sharply by 11.5% to 460k units versus 515k units previously, its worst level in 17-years. Durable goods orders also fell sharply, posting a 4.5% decline compared with a 1.3% increase a month earlier while the core durable goods orders declined by 3.0% versus a 0.7% increase from July. Meanwhile, weekly jobless claims spiked up to 493k, versus 455k a week prior
Trading Calls - Sep 26 2008
Nifty (4111) Sup 4060 Res 4175
Buy Axis Bank (721) SL 714
Target 735, 738
Buy Aban (2322) SL 2302
Target 2365, 2375
Buy ONGC (1071) SL 1055
Target 1105, 1115
Sell Siemens (456) SL 461
Target 446, 444
Sell PNB (491) SL 496
Target 481, 479
Indecisive moves likely
Human science is an uncertain guess.
With inflation remaining unchanged at 12.14% (lower than expectations), and most players focussed on the upcoming results, the market may remain choppy and rangebound. Developments in global markets, especially in the US, will continue to drive the sentiment here. The anxiety over the fate of the Bush government's major rescue program for the troubled financial sector may keep a lid on the progress of the key indices. One should lock in whatever gains one gets in these uncertain environment.
Another major cause of concern is the continuous selling by the FIIs, who net sold more than Rs10bn worth of Indian shares on Thursday. This trend may not change much over the next few weeks and perhaps months, unless the global risk aversion subsides. Some relaxation in the investment regime for FIIs by SEBI could perhaps do the trick for the Indian market.
Today, we expect the market to open a tad higher given the bullish close on Wall Street, which welcomed the in-principal agreement struck by the lawmakers on the massive package to rescue the beleaguered US financial system. However, the Asian markets don't seem to be that excited by the prospect of a final green light to the Bush regime's $700bn bailout plan, possibly over the weekend. Most Asian stock benchmarks are in the red this morning, falling in a broad range of 0.5-2.5%. Shares in Europe, though saw a strong rally on Thursday, with the key national indices gaining more than 2% each. Most emerging markets too ended sharply higher.
Meanwhile, the derivative side of the market shows that the bulls are likely to hold an upper hand in the near term. Firstly, the rollover of September Nifty futures was lower than the last three months' average. This shows that the bears have let their shorts expire instead of carrying them over to the next series. At the same time, the October Nifty futures have witnessed quite a strong build up, and the premium on these contracts has also increased steadily. This indicates that most of the buildup was on the long side. Trend on the options front signals a range of 4100-4300 on the Nifty with a positive bias.
Coming back to Wall Street, stocks surged on reports that US lawmakers were close to an agreement on the extraordinary rescue package for the battered financial sector, helping offset grim economic data, including a slump in new-home sales.
The US market remains hopeful that something will come out sooner rather than later. The perception is that White House is close to getting the plan passed and that is definitely a short-term positive for the market.
Some Wall Street analysts say US stocks will probably see a bigger advance after a deal is signed, sealed, delivered, but any reaction is likely to be short-lived, as has been the market's recent history.
Once the euphoria is over Wall Street will have to come back to the harsh reality of slowing global and domestic economic growth and sluggish corporate earnings.
The Dow Jones Industrial Average jumped 197 points or 1.8% to end at 11,022. It was up as much as 304 points earlier in the day. The Standard & Poor's 500 index gained 23 points or 2% to close at 1,209. The Nasdaq Composite climbed 31 points or 1.4% at 2,188.
Dow gainers also included General Electric (GE), up 4.4%, after the company cut its earnings view for the year and halted a stock buyback, citing its financials business and the need to maintain a AAA credit rating.
Key Congressional leaders said they have come up with a bipartisan agreement in principle on a $700bn plan to let the Treasury buy bad mortgage assets from banks as a means of getting them to start lending again.
The deal would include many of the provisions lawmakers had been pushing for over the last few days, including help for homeowners, a limit to executive pay packages for participating companies and oversight of Treasury actions.
Yet, credit markets showed little reaction, with short-term borrowing rates spiking as banks clung to cash. The dollar fell versus other major currencies and oil and gold prices fell.
In the day's key economic reports, new home sales fell to a 17-year low, weekly jobless claims hit a seven-year high and durable goods orders showed a big drop.
The three-month Treasury bill, seen as the safest place to park money in the short term, rose to 0.75% from 0.35% earlier in the session following news that the rescue plan is progressing. Last week, the three-month bill fell to a 68-year low around 0% as panic gripped financial markets.
Longer-term treasury prices also fell Thursday, raising the yield on the benchmark 10-year note to 3.85% from 3.80% late on Wednesday.
US light crude oil for November delivery rose $2.29 to settle at $108.02 a barrel on the New York Mercantile Exchange after tumbling in the morning.
Oil prices had plummeted over $55 after peaking at $147.27 a barrel on July 11, as investors bet that sluggish global growth will eat into oil demand. But prices have soared in the last few weeks as the financial crisis has intensified and investors sought to put their money into hard assets.
COMEX gold for December delivery fell $13 to settle at $882 an ounce. In currency trading, the dollar fell against the euro and the yen. Gasoline prices fell for the eighth day in a row, according to a nationwide survey of credit card activity.
European shares rose in a volatile session. The pan-European Dow Jones Stoxx 600 index rose 2% to 271.01. The French CAC-40 index advanced 2.7% to 4,226.81, while Germany's DAX 30 traded up 2% at 6,173.03, and the UK's FTSE 100 gained 2.2% at 5,197.02.
Among the emerging markets, the Russian RTS index fell 0.8% to 1,304.99 while the Bovespa in Brazil surged nearly 4% to 51,828. The IPC index in Mexico climbed 2.8% to 25,645 and the ISE National 30 index in Turkey shot up by 4.4% to 45,855.
Market to remain sideways
Markets which started off the day with a slightly positive bias, were unable to hold on to their gains on the back of selling witnessed in the IT, realty and power stocks. However, key indices managed to stage a comeback as buying was witnessed at lower levels. Finally, The BSE benchmark Sensex declined 152 points to close at 13,540 and the NSE Nifty index fell 50 points to close at 4,110.
Among the 30 components of the Sensex, 23 stocks ended in the red and only 7 stocks ended with positive bias. Reliance Industries, Bharti Airtel, ITC and Infosys were among the major laggards. Bucking the negative trend were, HDFC Bank, L&T, ONGC and NTPC.
Shares of Tata Steel ended flat at Rs485. In the early trades ~1 crore equity shares of the company changed hands at an average price of Rs487 per shares on the BSE. The scrip touched an intra-day high of Rs492 and a low of Rs480 and recorded volumes of over 1,00,00,000 shares on BSE.
Shares of Opto Circuits slipped 1.1% to Rs264. According to reports the company’s wholly owned subsidiary Eurocor GmbH has received registration for its drug eluting balloon Dior in India. The scrip touched an intra-day high of Rs273 and a low of Rs261 and recorded volumes of over 95,000 shares on BSE.
Suzlon Energy declined by 7% to Rs182. The company announced that the board of directors would meet on September 27, to consider the proposal to undertake a rights issue of its equity shares to an extent of Rs18bn. The scrip touched an intra-day high of Rs201 and a low of Rs181 and recorded volumes of over 48,00,000 shares on BSE.
Balaji Telefilms slipped by 3% to Rs142. According to reports, INX Media Pvt. might sell significant stake in its flagship regional general entertainment channel 9X to Balaji. The scrip touched an intra-day high of Rs154 and a low of Rs140 and recorded volumes of over 1,00,000 shares on BSE.
ONGC gained by 1% to Rs1071 after the company announced that it was looking for acquisition in Latin America, West Africa and former Soviet Union countries. The scrip touched an intra-day high of Rs1082 and a low of Rs1034 and recorded volumes of over 3,00,000 shares on BSE.
Market may remain under pressure and would turn sideways in the coming days. Given the market conditions, do not go overboard at such signs. Fresh, sustained buying is needed to push the market further near earlier highs.
Tata Motors to sell stake in six arms (ET)
Unitech secures spectrum in Gujarat and UP (ET)
ONGC may enter into JV with foreign strategic partners for three deepwater blocks within a month (BL)
Maruti in mulling CNG variants for its offerings in the compact car segments (BL)
BHEL is seeking EoIs from transmission equipment firms for an equity JV (DNA)
ONGC looking at acquiring oil and gas assets in Latin America and West Africa (DNA)
Dr Reddy’s forays into inhaler segment (ET)
The Government not to raise prices of gas produced by ONGC and OIL (ET)
PFC and IDBI may arrange Rs130bn loan syndication for the Krishnapatnam UMPP (ET)
Hindustan Zinc cuts lead prices by Rs500/tonne while keeps zinc prices unchanged (BL)
NTPC and Inland Waters enters into MoU for exploring possibility of transporting imported coal (DNA)
NMDC and Steel Ministry at loggerheads over iron ore exports duty; company seeks abolition of the 15% ad valorem levy (DNA)
Wockhardt to open seven hi-tech hospitals across the country (BS)
Indiabulls Financials rejigs structure of life insurance JV (ET)
Glenmark gets US FDA approval to market anti-inflammatory drug (ET)
Aurobindo Pharma gets US FDA nod for generic drug (BS)
Edelweiss, Oriental Insurance and AIMC enters into three-way MoU for providing motor insurance to truckers at 25% discount (ET)
Shyam Telelink to get a pan-India license to roll out telecom services from September 30th (ET)
Man Industries secures order worth Rs11bn for spirally-welded pipes (DNA)
Garware Offshore plans to purchase two specialized PSVs for US$150mn by FY09-end (DNA)
UCO Bank to raise Rs5-6bn through FPO (FE)
Suven Lifesciences gets DCGI nod for Phase I trials of Suvn-502 (ET)
REC plans to raise US$250mn via ECB (DNA)
Adlabs in talks with theatres for cinema distribution via cable (FE)
Arvind Mills expects 30-35% revenues from Megamart (BS)
Info Edge has invested Rs200mn for 49% equity stake in eTechAces Marketing and Consulting Pvt Ltd (FE)
Religare AEGON secures SEBI approval to launch mutual fund business (BL)
Binani Cement plans to raise prices by Rs3-5/bag of 50kg (DNA)
Staff of Century Textiles refuse to accept company’s pre-retirement scheme (ET)
Saksoft plans to acquire a US-based software testing company (BL)
Economic Front Page
Directorate of Advertising and Visual Publicity (DAVP) has increased the advertisement tariff by 24% (DNA)
Cement companies plan to cut dealer margins by as high as 50% due to rising input costs (BS)
Railways to levy surcharge of 5-7% on transportation of all products (ET)
DoT has decided to hold 3G and WiMax auctions simultaneously (BL)
Rice output estimated higher at 83.25mt in FY09 (BL)
Fertiliser subsidy bill soars to Rs1,250bn from budgeted estimate of Rs310bn (DNA)
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