Friday, October 10, 2008
Morgan Stanley - Gone ? - BSE Bulk Deals to Watch - Oct 10 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
10/10/2008 532875 ALLIED DIGIT KOTAK MAHINDRA UK LTD AC SANDSTONE CAPITAL INDIA MASTER FUND LTD B 101704 492.00
10/10/2008 532875 ALLIED DIGIT MORGAN STANLEY MAURITIUS COMPANY LIMITED S 101704 492.00
10/10/2008 500877 APOLLO TYRE. KOTAK MAHINDRA UK LTD AC SANDSTONE CAPITAL INDIA MASTER FUND LTD B 8405530 33.25
10/10/2008 500877 APOLLO TYRE. MORGAN STANLEY MAURITIUS COMPANY LIMITED S 8405530 33.25
10/10/2008 506074 ARSHIYA INTL CREDIT SUISSE SINGAPORE LIMITED B 423458 113.50
10/10/2008 506074 ARSHIYA INTL MORGAN STANLEY MAURITIUS COMPANY LIMITED S 423458 113.50
10/10/2008 532668 AURIONPRO SO HSBC BANK MAURITIUS LIMITED B 424527 160.00
10/10/2008 532668 AURIONPRO SO MORGAN STANLEY MAURITIUS COMPANY LIMITED S 425037 160.00
10/10/2008 532719 BL KASHYAP ABN AMRO BANK N V LONDON B 400000 453.00
10/10/2008 532719 BL KASHYAP CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED S 400000 453.00
10/10/2008 590076 CAMSON BIO BATLIVALA AND KARANI FINANCIAL CONSULTANTS PVT LTD B 50000 36.30
10/10/2008 517326 CMC LTD COPTHALL MAURITIUS INVESTMENT LIMITED B 213160 362.00
10/10/2008 517326 CMC LTD MERRILL LYNCH CAPITAL MARKET ESPANA SA SVB S 213100 362.00
10/10/2008 531739 GENNEX LAB GOVINDJI GUPTA B 63897 41.65
10/10/2008 503699 GEOD LTD DEUTSCHE SECURITIES MAURITIUS LIMITED B 689928 131.65
10/10/2008 503699 GEOD LTD GOLDMAN SACHS INVESTMENTS MAURITIUS S 5394529 122.50
10/10/2008 503699 GEOD LTD MORGAN STANLEY MAURITIUS COMPANY LIMITED S 658928 132.00
10/10/2008 532770 HANUNG TOYS KOTAK MAHINDRA UK LTD AC SANDSTONE CAPITAL INDIA MASTER FUND LTD B 879180 100.00
10/10/2008 532770 HANUNG TOYS MORGAN STANLEY MAURITIUS COMPANY LIMITED S 879180 100.00
10/10/2008 517354 HAVELLSINDIA ABN AMRO BANK N.V. LONDON B 900000 217.50
10/10/2008 517354 HAVELLSINDIA CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LTD S 900000 217.50
10/10/2008 509631 HEG LIMITED CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD B 584615 140.00
10/10/2008 509631 HEG LIMITED DEUTSCHE BANK AG LONDON GDR AC S 584615 140.00
10/10/2008 517380 IGARASHI MOT GOLDMAN SACHS INVESTMENTS MAURITIUS S 886180 31.25
10/10/2008 531129 INAN MARB IN CHETAN DOGRA B 16449 61.74
10/10/2008 531807 ING VYSYA BK COPTHALL MAURITIUS INVESTMENT LIMITED B 1048960 173.00
10/10/2008 631807 ING VYSYA BK MERRILL LYNCH CAPITAL MARKET ESPANA SA SVB S 1048960 173.00
10/10/2008 531687 KARUTURI GLO KOTAK MAHINDRA UK LTD AC SANDSTONE CAPITAL INDIA MASTER FUND LTD B 7236699 9.15
10/10/2008 531687 KARUTURI GLO MORGAN STANLEY INVESTMENTS MAURITIUS LIMITED S 7236699 9.15
10/10/2008 532714 KEC INTERN RELIANCE CAPITAL TRUSTEE CO.LTD.AC RELIANCE DIVERSIFIED POW B 1000000 232.20
10/10/2008 532714 KEC INTERN FIDELITY FID FUNDS MAU LTD S 1000000 232.20
10/10/2008 531497 MADHUCON PRO KOTAK MAHINDRA UK LTD AC SANDSTONE CAPITAL INDIA MASTER FUND LTD B 229302 105.00
10/10/2008 531497 MADHUCON PRO MORGAN STANLEY MAURITIUS COMPANY LIMITED S 229302 105.00
10/10/2008 513446 MONNE ISPAT CREDIT SUISSE SINGAPORE LIMITED B 919034 215.00
10/10/2008 513446 MONNE ISPAT MORGAN STANLEY MAURITIUS COMPANY LIMITED S 919034 215.00
10/10/2008 531209 NUCLEU SOF E COPTHALL MAURITIUS INVESTMENT LIMITED B 1031219 82.25
10/10/2008 531209 NUCLEU SOF E MERRILL LYNCH CAPITAL MARKET ESPANA SA SVB S 1031219 82.25
10/10/2008 531092 OM MET INFRA COPTHALL MAURITIUS INVESTMENT LIMITED B 567685 13.20
10/10/2008 531092 OM MET INFRA MORGAN STANLEY MAURITIUS COMPANY LIMITED S 567685 13.20
10/10/2008 531092 OM MET INFRA MORGAN STANLEY INVESTMENTS MAURITIUS LIMITED S 1996000 13.20
10/10/2008 532675 PRITHVI INFO MAJESTIC SALES PROMOTION P LTD B 102046 45.17
10/10/2008 514304 S. KUMARS NAT MORGAN STANLEY MAURITIUS COMPANY LIMITED S 1072336 21.65
10/10/2008 531598 SHYAM SOFT I RAJESH K GODA S 35000 4.84
10/10/2008 521034 SOMA TEX IND BASMATI SCURITIES PVT. LTD. B 305600 28.24
10/10/2008 521034 SOMA TEX IND KII LTD S 295000 28.25
10/10/2008 532790 TANLA COPTHALL MAURITIUS INVESTMENT LIMITED B 990000 119.00
10/10/2008 532790 TANLA CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED S 990000 119.00
10/10/2008 524394 VIMTA LABS L KOTAK MAHINDRA UK LTD AC SANDSTONE CAPITAL INDIA MASTER FUND LTD B 385013 27.50
10/10/2008 524394 VIMTA LABS L MORGAN STANLEY MAURITIUS COMPANY LIMITED S 385013 27.50
10/10/2008 506720 ZANDU PHAR W VRUSHAL TRADING PVT LIMITED B 10170 15041.27
10/10/2008 506720 ZANDU PHAR W TEJAL MERCHANTILES PVT LIMITED B 10000 15099.84
10/10/2008 506720 ZANDU PHAR W M B TRADE LINK PVT LIMITED B 5845 15034.99
10/10/2008 506720 ZANDU PHAR W NOVA TRADEX PRIVATE LIMITED B 8780 15058.02
10/10/2008 506720 ZANDU PHAR W BHASKAR GOPALDAS PARIKH B 5566 15059.78
10/10/2008 506720 ZANDU PHAR W ANUJA AJAY PARIKH B 4450 15099.98
10/10/2008 506720 ZANDU PHAR W BHARTI GIRISH PARIKH B 9722 15085.00
10/10/2008 506720 ZANDU PHAR W ULKA BUSINESS LINKS PVT LIMITED S 8752 15035.00
10/10/2008 506720 ZANDU PHAR W JIMMY BHASKAR PARIKH S 5280 15063.98
10/10/2008 506720 ZANDU PHAR W NEETA BHASKAR PARIKH S 5066 15049.00
10/10/2008 506720 ZANDU PHAR W PRATIBHA HARENDRA PARIKH S 5845 15035.00
10/10/2008 506720 ZANDU PHAR W MINOTI AJAY PARIKH S 14372 15099.89
10/10/2008 506720 ZANDU PHAR W GIRISH GOPALDAS PARIKH S 9722 15085.00
NSE Bulk Deals to Watch - Oct 10 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
10-OCT-2008,20MICRONS,20 Microns Limited,NAMAN SECURITIES & FINANCE PVT LTD,BUY,75298,23.50,-
10-OCT-2008,CESC,CESC Ltd.,PCA INDIA INFRASTRUCTURE EQUITY OPEN LIMITED,BUY,914200,190.00,-
10-OCT-2008,EDUCOMP,Educomp Solutions Limited,CLSA (MAURITIUS) LIMITED,BUY,142748,2048.00,-
10-OCT-2008,EDUCOMP,Educomp Solutions Limited,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,BUY,97000,2063.04,-
10-OCT-2008,HBLPOWER,HBL Power Systems Limited,TREE LINE ASIA MASTER FUND (SINGAPORE) PTE LIMITED,BUY,1080000,151.75,-
10-OCT-2008,KEYCORPSER,Keynote Corp Serv Ltd,INDIA MAX INVESTMENT FUND LTD,BUY,125000,125.00,-
10-OCT-2008,PRITHVI,Prithvi Information Solut,SRI SALASAR SUPPLIER PVT LTD,BUY,128924,44.67,-
10-OCT-2008,RALLIS,Rallis India Ltd.,RELIALNCE CAPITAL MUTUAL FUND,BUY,349807,355.00,-
10-OCT-2008,SPSL,Shree Precoated Steels Li,PASSPORT CAPITAL LLC,BUY,654627,40.20,-
10-OCT-2008,ZANDUPHARM,Zandu Pharma works Ltd,MINOTI AJAY PARIKH,BUY,11618,15100.00,-
10-OCT-2008,20MICRONS,20 Microns Limited,NAMAN SECURITIES & FINANCE PVT LTD,SELL,14891,23.31,-
10-OCT-2008,CESC,CESC Ltd.,FID FUNDS MAURITIUS LIMITED ,SELL,1924472,190.07,-
10-OCT-2008,EDUCOMP,Educomp Solutions Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,142748,2048.01,-
10-OCT-2008,GHCL,GHCL Limited,PRANIDHI HOLDINGS PVT LTD,SELL,575500,30.57,-
10-OCT-2008,HBLPOWER,HBL Power Systems Limited,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,1080000,151.75,-
10-OCT-2008,KEYCORPSER,Keynote Corp Serv Ltd,ZEN WEST COMMERCIALS,SELL,124990,125.00,-
10-OCT-2008,RALLIS,Rallis India Ltd.,KOTAK SECURITIES CLIENT PMS A/C,SELL,350000,355.00,-
10-OCT-2008,ZANDUPHARM,Zandu Pharma works Ltd,TEJAL MERCHANTILE PVT LTD,SELL,11618,15100.00,-
Post Session Commentary - Oct 10 2008
Domestic market battered for yet another day on a negative global cues and IIP data. BSE Sensex lost nearly 1000 points during the trading session and ended below 10,600 level along with NSE Nifty below 3,400 mark. Although in a move to aid the liquidity in the market, RBI has cut CRR by 100 bps to bring it down to 7.5%. However, this has not much helped the market to sustain by the heavy losses. Markets opened on extremely negative note on awfully weak cues from markets across the world on concern for global recession. Asian markets had crashed and Nikkie lost more than 11%, which is its biggest fall since 1987 crash. Further markets continued its dive though struggled to recover a bit in afternoon. Markets extended its losses to close the day in deep red as heavyweights took huge beating on the bourses. European markets also fueled to the negative sentiments as scene in Europe is also terrible. On the sectoral front, all indices ended in red. Reality index faced the hard hit as witnessed deep cut of more than 12%. Apart from that, Capital Goods, Metal, Oil & Gas, Bank, Consumer Durables and Power stocks were major sufferers of negative sentiments. Midcap and Smallcap stocks had also crashed very badly and ended with loss of more than 8% and 7% respectively. Among the Sensex pack 28 stocks ended in negative terrain while 28 in green. The market breadth was negative as 2189 stocks closed in red while 382 stocks closed in green and 48 stocks remained unchanged.
The wholesale price index (WPI) for the week ended 27th Sep 2008, rose to 11.80% eased from a rise of 11.99% in the previous week. The WPI for primary articles is down 0.2% (week-on-week).
The Index of Industrial Production (IIP) numbers for August, stood at 1.3% as compared to 10.9% year-on-year (YoY). Along with that manufacturing growth for August stands at 1.1% versus 10.7% (YoY), and the consumer durables growth for the period has come in at 5.1% against 6.2%.
IT bellwether Infosys Technologies released its quarterly results and has lowered its FY09 guidance. The company’s standalone net profit for the quarter ended September 2008 was up 10% at Rs.1,390 crore against Rs.1,262 crore in the previous quarter.
The BSE Sensex closed lower by 800.51 points at 10,527.85 and NSE Nifty ended down by 233.7 points at 3,279.95. The BSE Mid Caps and Small Caps closed with losses of 334.48 points at 3676 and by 343.74 points at 4,355.45. The BSE Sensex touched intraday high of 10,904.13 and intraday low of 10,239.76.
Losers from the BSE pack are Reliance comm (21.02%), ICICI Bank (19.71%), Reliance Infra (19.26%), JP asso (16.27%), Tata Steel (14.99%), Hindalco Ind (11.18%), HDFC (8.98%), DLF Ltd (8.79%), BHEL (8.28%), L&T Ltd (8.02%) and Reliance Ind (7.43%).
Only two gainers from BSE Sensex pack are Ranbaxy Lab (4.71%) and SBI (2.27%).
The BSE Capital Goods index closed lower by 810.33 points at 7983.04. Losers are Elecon ENG C (19.68%), Jyoti Structure (19.04%), Punj Lloyd (18.37%), Suzlon Energy (17.60%), Usha Martin (16.80%) and Areva (14.81%).
The BSE Metal index plunged 666.89 points to close at 6,542.57. Major losers are Welspan Guajrat SR (21.80%), Gujarat NRE C (19.90%), Tata Steel (14.99%), Hindalco (11.18%), Jindal Saw (9.72%) and Ispat Indus (9.33%).
The BSE Oil & Gas index tumbled 524.15 points to close at 7,272.31 as Essar Oil Ltd (12.92%), Reliance Natural Resources (11.79%), Cairn Indi (11.38%), HPCL (8.14%), Reliance (7.43%) and Gail India (5.68%) ended in negative territory.
The BSE Bank index dropped by 452.77 points to close at 6,172.00. Major losers are Yes Bank (20.70%), ICICI Bank (19.71%), Axis Bank (14.19%), Indus Ind Bank (11.17%), Karnataka Bank (6.62%) and PNB (5.90%).
The BSE Reality index ended down by 321.27 points at 2,523.27. Losers are Indiabull Real (19.45%), Orbit Co (19.45%), Housing Dev (17.99%), Mahindra Life (17.49%), Penland Ltd (16.05%) and Anant Raj (15.07%).
The Consumer Durables index lost 240.65 points to close at 2,569.60. As Videocon Ind (13.50%), Blue Star L (10.91%), Gitanjali GE (10.27%), Rajesh Export (7.59%) and Titan Ind (4.61%) closed in negative territory.
Q2 September 2008 results to dictate trend
Domestic bourses will take cues from global markets in the coming weeks. Fears of further selling by foreign institutional investors will continue to weigh on the domestic bourses. An acute risk aversion has set in among investors as a result of the global financial sector crisis.
Meanwhile, the crucial Q2 September 2008 earnings reporting season has started with a weak note with IT bellwether Infosys cutting earnings and revenue guidance in dollar terms for the year ending March 2009. The company has attributed the downward revision to the ongoing global financial sector crisis and the drastic depreciation of major global currencies against the dollar.
Analysts see capital goods, telecom and IT firms reporting decent-to-strong earnings in Q2 September 2008. Auto and cement firms, on the other hand, are likely to see pressure on margins.
Strong order book will benefit capital goods firms whereas continued strong growth in new subscribers will boost financials of telecom firms. IT firms will benefit from weak rupee against the dollar.
Panic grips bourses
A global sell-off triggered the biggest weekly fall for Indian indices since 1990. Fears the deepening credit crisis will push the global economy into recession, rattled stock markets across the globe. Back home, weak industrial output data added to the gloom on Friday, 10 October 2008.
The Reserve Bank of India (RBI)'s steep cut in cash reserve ratio twice in the week failed to soothe investors nerves.
The BSE 30-share Sensex slumped 1,998.47 points or 15.95% to 10,527.85 in the week ended Friday, 10 October 2008. The S&P CNX Nifty was down 538.35 points or 14.09% to 3279.95 in the week.
The BSE Mid-Cap index was down 21.42% at 3,676. The BSE Small-Cap index was down 20.31% at 4,355.45. Both the indices underperformed the Sensex.
The key benchmark indices extended steep losses of the previous trading session on 6 October 2008 as stocks fell across the globe after global financial crisis deepened. The BSE 30-share Sensex lost 724.62 points or 5.78% to 11,801.70. The S&P CNX Nifty was down 215.95 points or 5.66% to 3,602.35.
The key benchmark indices ended mixed on a highly volatile day of trade on 7 October 2008. The BSE 30-share Sensex lost 106.46 points or 0.9% to 11,695.24. The S&P CNX Nifty was up 4.25 points or 0.12% to 3,606.60.
Institutional buying and short covering helped the market stage a strong rebound from lower level on 8 October 2008. The BSE 30-share Sensex lost 366.88 points or 3.14% to 11,328.36. The S&P CNX Nifty was down 73.25 points or 2.03% to 3,533.35. The market was closed on 9 October 2008 on account of a national holiday.
Markets ended with heavy losses on 10 October 2008 in line with other global markets on worries that the financial crisis will lead to a global recession. The BSE Sensex closed at 10,527.85, down 800.51 points or 7.07% for the day. NSE's Nifty ended at 3279.95, down 233.70 points or 6.65%.
India’s largest private sector bank by net profit ICICI Bank slumped 27.83% to Rs 364.10, lowest in almost four years. The company clarified to the media that it had adequate liquidity. A finance ministry official said Indian banks were well capitalised and the ministry did not see specific problem with ICICI Bank
India’s largest private sector company by market capitalization and oil refiner Reliance Industries slipped 13.29% to Rs 1,527 in the week. The promoters of Reliance Industries converted 12 crore warrants into an equal number of shares. Post-transaction, the promoter group holds 49% stake in the company, with 52% voting rights. This involves an infusion of around Rs 15,142 crore into the company. The shares have a lock-in period of three years.
India’s largest electric equipment maker by sales Bharat Heavy Electricals declined 14.09% to Rs 1345.85. Bharat Heavy Electricals and Nuclear Power Corporation of India are reportedly in talks with foreign firms Siemens, Alstom and GE for a third partner in their planned joint venture to set up nuclear power projects in India.
India’s largest oil exploration firm by revenue Oil and Natural Gas Corporation fell 10.18% to Rs 915.85. The company will shortly tie up with Uranium Corporation of India for exploring and mining the fissile material, suggest reports.
India’s largest drug maker by sales Ranbaxy Laboaratories spurted 10.82% to Rs 292.40. The US Department of Justice withdrew a motion against the drugmaker for allegedly bringing adulterated and misbranded medications into the United States.
India’s largest commercial vehicle maker by sales Tata Motors fell 11.87% to Rs 291.45. The company, on 7 October 2008, signed an agreement with Gujarat government to make the Nano car there days after the company pulled out of West Bengal.
India's second largest software exporter by sales Infosys Technologies fell 11.81% to Rs 1226.70. The company revised its dollar revenue guidance for the year ending March 2009 downwards to reflect the current economic situation and the drastic depreciation of major global currencies against the US dollar.
The Reserve Bank of India on 10 October 2008 announced a 100 basis point cut in the cash reserve ratio (CRR), the proportion of deposits that banks must keep with the central bank, in addition to a 50 basis point reduction announced on 6 October 2008, to boost liquidity.
India's industrial growth slumped to 1.3% in August this year, compared to a 10.9%t growth in August 2007. Manufacturing production rose 1.1% in August 2008 from a year earlier. Industrial output rose 8.1% in fiscal 2007/08 (April-March), compared with 11.6% growth in 2006/07.
India's inflation rose 11.8% in the week ended 27 September 2008, down from 11.99% in the previous week ended 20th September 2008.
The government on 7 October 2008, added mining, exploration and refining to its definition of the infrastructure sector. These three sectors will be added to the list which includes power, telecom, railway, roads, sea ports and airports, industrial parks, and urban infrastructure.
Sensex off 48% in calendar 2008
There is fear and panic on the stock markets. The bourses suffered heavy losses today on the back of global sell-off and on data showing dismal industrial production growth in August 2008. The BSE 30-share Sensex lost 800.51 points. IT stocks suffered on downward revision in guidance in dollar terms by IT bellwether Infosys Technologies.
Banking stocks were volatile reacting to a slew of news such as cut in cash reserve rate, slowdown in industrial production and fall in inflation. Reliance Communications declined 21.02%, Reliance Infrastructure and ICICI Bank lost more than 19% each and Jaiprakash Associates shed 16.27%.
Securities & Exchange Board of India (Sebi) chief C B Bhave today said there was no unusual activity in the stock market. He further said there has been no shorting by institutions in cash markets.
Inflation based on the whole price index rose 11.8% in 12-months to 27 September 2008, lower than previous week's 11.99% rise, data released by the government during trading hours today, showed.
Stocks fell across the globe despite worldwide central bank measures to stave off a crisis. Bank bailouts, liquidity injections and interest rate cuts across the world have failed to quell investor anxiety with Asian stocks tumbling today, following overnight setback in US stocks.
Back home, the Reserve Bank of India (RBI) toady cut the cash Reserve Ratio (CRR) second time in the week. The central bank cut CRR by 100 basis points after 50 basis point cut earlier in the week.
Trading in US index futures suggested the Dow would fall 227 points at the opening bell.
The BSE 30-share Sensex ended down 800.51 points or 7.07% to 10,527.86. The index plunged 1,088.50 points at the day's low of 10,239.76 at the onset of the trading session, its lowest level since 24 July 2006. The Sensex fell 424.33 points at day’s high of 10,904.13, in early trade.
The S&P CNX Nifty was down 233.70 points or 6.65% to 3,279.95. Nifty hit a low of 3,198.95 in early trade, its lowest level since 9 August 2006.
From the recent high of 13,055.67 on 1 October 2008, the Sensex has lost 2,527.81 points or 19.36%. The barometer index is down 9,759.13 points or 48.1% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 10,678.91 points or 50.35% below its all-time high of 21,206.77 struck on 10 January 2008.
BSE clocked a turnover of Rs 5,073 crore today as compared to a turnover of Rs 5,135.12 crore on 8 October 2008.
Nifty October 2008 futures were at 3295, at a premium of 15.05 points as compared to spot closing of 3279.95. NSE's futures & options (F&O) segment turnover was Rs 48,279.24 crore, which was lower than Rs 57,666.95 crore on Wednesday, 8 October 2008.
The BSE Mid-Cap index ended down 8.34% at 3,676. The BSE Small-Cap index was down 7.31% at 4,355.45. Both the indices underperformed the Sensex.
The market breadth was extremely weak. On BSE, 382 shares advanced as compared to 2,189 that declined. 48 shares remained unchanged.
All the sectoral indices on BSE were in the red. BSE Realty index (down 11.3% to 2,523.07), BSE Consumer Durables index (down 10.11% to 2,139.50), BSE Metal index (down 9.25% to 6,542.27), BSE Capital Goods index (down 9.22% to 7,983.04), BSE Power index (down 8.8% to 1,855.04), BSE Bankex (down 7.84% to 5,319.50) underperformed the Sensex.
BSE HealthCare index (down 3.92% to 3,213.28), BSE IT index (down 4.33% to 2,584.25), BSE FMCG index (down 4.46% to 1,860.56), BSE PSU index (down 4.47% to 5,535.99), BSE Auto index (down 5.43% to 3,255.68), BSE Oil & Gas index (down 6.72% to 7,272.31), BSE Teck index (down 6.74% to 2,112.03), outperformed the Sensex.
Among the major Sensex losers were, Jaiprakash Associates (down 16.27% to Rs 76.15), Reliance Infrastructure (down 19.25% to Rs 515.30) and Reliance Communications (down 21.02% to Rs 237.40) slumped.
India’s largest private sector company by market capitalization and oil refiner Reliance Industries slumped 7.43% to Rs 1,527. The stock recovered from the session’s low of Rs 1,480.
India’s largest drug maker by sales Ranbaxy Laboaratories spurted 4.71% to Rs 292.40 after the US government withdrew a motion against Ranbaxy Laboratories after the drugmaker submitted a comprehensive set of audit documents to the authorities.
India's biggest private sector bank by net profit ICICI Bank lost 19.71% to Rs 364.10. The stock came off session's low of Rs 326.70. India's second-largest bank, has very small exposure to the global financial crisis and there should be no concerns about liquidity, its joint managing director Chanda Kochhar said. Her comments came after the bank's stock fell as much as 28% today as panic-stricken investors dumped the shares in a weak market.
India's second biggest private sector bank by market capitalisation HDFC Bank was down 5.35% at Rs 1,046.35, off the session's low of Rs 975.55.
India's largest state-run lender by market capitalisation State Bank of India rose 2.27% to Rs 1,352.16, off a low of Rs 1181.15.
IT stocks recovered after earlier fall on Infosys’s weak outlook. India’s second largest IT exporter by sales Infosys fell 2.2% to Rs 1,226.70. The stock recovered from the session’s low of Rs 1,040. Infosys said it has revised the US dollar guidance downwards to reflect the current economic situation and the drastic depreciation of major global currencies against the US dollar.
Infosys expects earnings per American depository share at $2.23 for the year ending March 2009, a growth of 12.6%. At the time of Q1 June 2008 results, the company had forecast earnings per American depository share at $2.31 to $2.35 for the year ending March 2009, a growth of 16.7% to 18.7%.
Infosys consolidated net profit rose 9.9% to Rs 1432 crore on 11.6% growth in sales to Rs 5418 crore in Q2 September 2008 over Q1 June 2008. The company announced the results before trading hours today, 10 October 2008.
Tata Consultancy Services, Wipro and Satyam Computer Services tumbled between 4.32% to 6.69%.
The Indian rupee fell to a record low past 49.07 per dollar today as the spreading global financial crisis hurt sentiment in Asian stock markets, leading to concerns of a large outflow of foreign funds from India. IT exporters benefit from the weaker rupee as they derive most of their revenues in dollars.
India’s largest steel maker by sales Tata Steel slumped 14.49% to Rs 287.50. ArcelorMittal SA and Tata Steel have reportedly shown interest in mining coal in collaboration with Coal India from the latter's 18 abandoned underground mines.
India’s largest aluminum maker by sales Hindalco Industries slumped 11.18% to Rs 80.65 even as the company said IGH Holdings, a promoter of the company has acquired 8.94 lakh shares or 0.05% of equity capital of the company by way of open markets purchases.
Tata Power Company declined 3.72% to Rs 774.70. The company is reportedly exploring the option of raising its stake in Indonesia's Bumi Resources Tbk, the world’s second largest coal company, after a sharp erosion in the value of the shares pledged by Bumi's parent firm, Bakrie & Brothers, with various lenders.
ICICI Bank clocked the highest volume of 1.16 crore on BSE. Reliance Natural Resources (94.27 lakh shares), Apollo Tyres (85.85 lakh shares), IFCI (85.41 lakh shares) and Jaiprakash Associates (83.93 lakh shares) were the other volume toppers in that order.
ICICI Bank clocked the highest turnover of Rs 428.25 crore on BSE. Reliance Industries (Rs 325.90 crore), Bharti Airtel (Rs 283.21 crore), Reliance Capital (Rs 230.99 crore), State Bank of India (Rs 186.57 crore) were other turnover toppers in that order.
Sintex Industries dropped 13.85% to Rs 195.70, even as the company reported 62.54% growth in net profit to Rs 68.24 crore in Q2 September 2008 over Q2 September 2007.
Era Infra Engineering slipped 7.24% to Rs 75.55, even as the company said its joint venture company has bagged a contract from Airport Authority of India for construction of a new terminal at Devi Ahilya Bai Holkar Airport, Indore
Aurobindo Pharma declined 7.56% to Rs 195, even as the company said it has received US Food & Drug Administration approval to manufacture and market Cyclobenzaprine hydrochloride tablets in multiple strengths.
Cairn India plunged 11.38% to Rs 151.40, on reports the Rajasthan government is yet to grant the crucial Right of Use (ROU) to Cairn India for the part of the pipeline that will pass through the state.
Ashok Leyland tumbled 8.01% to Rs 22.40 at 11:41 IST on BSE, after the company reported 14.57% fall in total sales to 6,186 units in September 2008 over September 2007.
JSW Steel rose 1.42% to Rs 296.80, having recovered from a 52-week low of Rs 244, after the company posted 14% growth in net crude steel production to 10.01 lakh tonnes in Q2 September 2008 over Q2 September 2007.
Biocon slipped 2.44% to Rs 134.15, even as the company said on Friday, 10 October 2008, its joint venture company NeoBiocon has launched Arbaxane in United Arab Emirates for the treatment of breast cancer.
India's industrial production rose at a dismal 1.3% in August 2008 compared to a 10.9% growth in August 2007. Manufacturing grew a poor 1.1% in August 2008 versus 10.7% growth in August 2007. Consumer durables production rose 5.1% in August 2008 verses 6.2% growth in August 2007. Capital goods prodcution rose 2.3% in August 2008 verses 14.7% growth in August 2007. Meanwhile, industrial production growth for July 2008 was revised upwards to 7.4% from 7.1%.
European markets which opened after Indian market were sharply lower. France’s CAC 40, Germany’s DAX and UK’s FTSE 100 were down between 7.49% to 8.41%.
Overnight, US stocks slumped more than 7% on fears that credit markets would stay frozen, paralysing the world's financial system and slowing economies to a standstill.
US light crude for November delivery fell $4.16, or 4.8%, to $82.43 a barrel today, 10 October 2008, just above its earlier low of $82.00, in its biggest two-week decline since the start of the Iraq war in 2003. Oil slipped on fears that market turmoil will send demand for fuel slumping.
The Indonesian stock exchange suspended trading for a third day, and exchanges in Bangkok and Vienna halted trading after shares fell more than 10 %, triggering circuit-breaker rules.
In Moscow, the Russian Duma, or Parliament, approved a financial sector bailout package valued at more than $80 billion. Trading on Russian stock exchanges was suspended until further notice.
It is raining lows!
The downward journey of the domestic stock market continued for the fifth straight session, as rate cuts by the seven central banks and cash injections by various governments failed to stem the fall in global indices. The Dow Jones Industrial Average-the benchmark index of the New York Stock Exchange- fell below 9,000 on Thursday, the first time since 2003. Asian markets and European markets were down 5–9%. The 30-stock Sensex of the BSE started the day on a bearish note at 10,632, around 696 points below its last close of 11,328. During mid-afternoon, the index accumulated losses of more than 1,050 points on across-the-board selling to touch the day's low of 10,240. The index however managed to erase its losses a bit and trade above 10,500 at the end of the session. After registering losses of 1,726 points in the last four sessions, the Sensex dropped 7.07% or 801 points to close at 10,529 today. The Nifty shed 234 points at 3,280.
All the 13 sectoral indices were mauled and each index declined by more than 4-11%. The BSE Realty was the major loser and crashed by 11.30% followed by BSE CD (down 10.11%), BSE Metal (down 9.25%), BSE CG (down 9.22%), BSE Power (down 8.80%) and BSE Bankex (down 7.84%). The BSE second-rung benchmark indices, the BSE mid-cap index and the BSE small-cap index tanked over 7-8% each.
The breadth of the market was heavily skewed in favour of losers. Of the 2,619 stocks traded on the BSE, 2,185 stocks declined whereas only 385 stocks advanced. Fourty nine stocks ended unchanged.
Except Ranbaxy Laboratories and State Bank of India, all the other 28 stocks in the Sensex basket ended lower. Among the major losers, Reliance Communications crashed 21.02% at Rs237.40, ICICI Bank plunged 19.71% at Rs364.10, Reliance Infrastructure slumped 19.26% at Rs515.30 and JP Associates crumbled 16.27% at Rs76.15. Tata Steel plummeted 14.99% at Rs287.50, Hindalco Industries dropped 11.18% at Rs80.65, HDFC shed 8.98% at Rs1719.20, DLF tanked 8.79% at Rs281.65, BHEL declined 8.28% at Rs1,345.85 and Larsen & Toubro lost 8.02% at Rs889.15. Other heavyweights also came under sustained selling pressure and lost around 5-7% each.
Realty stocks were battered the worst. Orbit Corporation tanked nearly 19.45% at Rs87.50, India Bulls Realestate plummeted 19.45% at Rs95.45, Mahindra Lifespace Developers slumped 17.49% at Rs211.55, Peninsula Land dropped 16.05% at Rs28.25, Anant Raj Industries lost 15.07% at Rs80 and Unitech slipped by 12.38% at Rs82.80. Akruti City, Omaxe, Parsvnath Developers and Phoenix Mills declined over 1-8% each.
Over 1.16 crore shares of ICICI Bank changed hands on the BSE followed by Reliance Natural Resources (0.94 crore shares), Apollo Tyres (0.85 crore shares), IFCI (0.85 crore shares) and JP Associates (0.83 crore shares).
Daily Call - Oct 10 2008
Things look pretty gloomy this Friday morning. More gloomy than we have ever felt. None of the individual steps taken by the US , Europe or the orchestrated ones like the interest rate cuts on Wednesday taken by nations across the world seem to be working. The financial markets seem to have fallen in quick sand, in which the more efforts you make to come out, you sink more. The Dow has fallen 678 points on Thursday and is below the 9000 mark, at 8579. The Asian indices too have slumped in response.
It is useless watching the support levels in the Indices or stocks as they have no relevance in today’s market. The three month Libor and the overnight rates that Banks charge each other are continuously increasing. Unless , you see a drop in these rates, don’t touch equities with a pole. If the Sensex hits a circuit breaker, then of course it is a different thing and stocks could present short term upward potential. Our past targets for Sensex are 9200 for the Sensex and 2850 for the Nifty.
Pre Session Commentary - Oct 10 2008
Today markets is likely to open with a heavy blood bath, as majority of Asian markets have been butchered during the opening and are still trading in deep red. The US markets were the ones that showed huge selling and negative sentiments, which are now followed by the other Asian markets. Domestic news have very little to play with the markets’ numbers because all the markets around the world are now exuding a linear movement. Therefore, one could expect the domestic markets to be highly volatile amidst negative sentiments in other markets. The inflation data to come today would also have a very little impact on the markets.
On Wednesday, domestic Markets opened with a blood bath on the back of poor sentiments across the world indices. The Asian markets opened negative on the back of the blood bath that happened in US markets a day before. Simultaneously the domestic markets crashed badly with heavy losses in the opening. Terrible sell of was seen on FMCG, Technology, Banking and Capital Goods indices. However during the post mid session the markets recovered phenomenal as Sensex and Nifty recovered 587.6 points and 184.2 points. CD, FMCG, IT and Bankex recorded fall of 6.75%, 5.18%, 4.90% and 4.42% respectively. During the trading session we expect the market to be trading in deep red.
The BSE Sensex closed at 11,328.36 registering a marginal fall of 366.88 points and NSE Nifty fell by 92.95 points to close at 3,513.65. The BSE Mid Caps and Small Caps closed with loss of 246.68 points and 277.20 points at 4,010.48 and 4,699.19. The BSE Sensex touched intraday high of 11405.73, and intraday low of 10,740.76.
On Thursday, the US market faced a heavy loss due to huge selling pressures across all markets. The Short Selling ban was lifted so to allow more trade. The ban was originally limited to 799 financial stocks and later it also included some non financial companies. However after the consequent rate cut off by majority of European and Asian countries, the investors in the US market were skeptic about their economy’s sustainability. The selling pressures therefore pulled the markets to new lows. Crude oil for November delivery fell by $2.05 to $86.90 per barrel on the New York Mercantile Exchange. The investors are optimistic about the economic slowdown across the world, hence anticipated fall in the demand of Crude oil. The OPEC has also called an emergency meeting on November 18 to chalk out plans to cut the production so to keep the Crude oil prices stable.
The Dow Jones Industrial Average (DJIA) was low by 678.91 points at 8579.19, along with NASDAQ index which was low by 95.21 points at 1,645.12 and the S&P 500 (SPX) also declined by 75.02 points to close at 909.92 points.
Indian ADRs ended down. In technology sector, Wipro closed lower by (3.93%) followed by Satyam that ended down by (2%) and Patni Computers by (2.19%). In banking sector ICICI Bank fell by (7.41%), while HDFC Bank lost (1.31%). In telecommunication sector, Tata Communication fell by (10.36%), while MTNL plunged (5.40%). Sterlite Industries fell by (10.23%).
Today the major stock markets in Asia opened with heavy blood bath amidst concerns of weak sentiments in US and other markets. The Shanghai Composite is low by 82.38 points and trading at 1,992.201. Further Japan''s Nikkei is low by 841.19 points at 8,316.30, Straits Times is also low by 141.05 points at 1,961.66 and South Korea’s Seoul Composite was low by 93.74 points at 1,201.15.
The FIIs on Wednesday stood as net sellers in equity and net buyers in Debt. Gross equity purchased stood at Rs2797.60 Crore and gross debt purchased stood at Rs149.30 Crore, while the gross equity sold stood at Rs3345.70 Crore and gross debt sold stood at Rs59.50 Crore. Therefore, the net investment of equity and debt reported were (Rs548.10 Crore) and Rs89.80 Crore respectively.
On Wednesday, the partially convertible rupee ended at 47.90/92 per dollar after it touched a low of 48.815 weakest in Six years. The currency regained after the announcement came from US federal that it would reduce its fund and discount rates by 50bps each. Further the European Central Bank, Bank of England and the Swiss, Canadian and Swedish central banks all cut rates to save the global meltdown.
On BSE, total number of shares traded were 32.79 crores and total turnover stood at Rs5,135.12 Crore. On NSE, total volumes of shares traded were 61.69 crores and total turnover was Rs12,819.42 Crore.
Top traded volumes on NSE Nifty – Suzlon Energy with total volume of 19460883 shares followed by ICICI Bank 14595573 shares, Reliance Petro 14272697, NTPC 11691525 shares and ITC 11219288 shares.
On NSE Future and Options, total number of contracts traded in index futures was 1328407 with a total turnover of Rs21611.06 Crore. Along with this total number of contracts traded in stock futures were 1036858 with a total turnover of Rs13638.43 Crore. Total number of contracts for index options was 1135148 and total turnover was Rs21642.91 Crore and total number of contracts for stock options was 49733 and notional turnover was Rs774.56 Crore.
Today, Nifty would have a support at 3,250 and resistance at 3,675 and BSE Sensex has support at 10,550 and resistance at 11,350.
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Into the abyss
The market is set to tumble today, 10 October 2008, on worries about a global recession despite worldwide central bank measures to stave off a crisis. Bank bailouts, liquidity injections and interest rate cuts across the world have failed to quell investor anxiety with Asian stocks tumbling today, following overnight setback in US stocks. Infosys Technologies, which reports its quarterly earnings before trading begins, will be in focus.
Japan’s Nikkei 225 average was down 10.6% at 974.12. In other Asian shares, key benchmark indices in Hong Kong, South Korea, China and Singapore were down 5% to 7%.
Overnight, US stocks slumped more than 7% on fears that credit markets would stay frozen, paralysing the world's financial system and slowing economies to a standstill.
At the centre of a financial crisis now almost a month old, credit markets remained in deep distress. With banks desperate to protect capital, the interbank cost of borrowing dollars rocketed. Three-month interbank rates for dollar loans hit their highest level of the year.
The cost of protection against defaults in Asia's sovereign and corporate debt also soared to record highs on Friday, 10 October 2008, on fears financial crisis would spread to the region.
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 8278.10 crore last month. The outflow has reached Rs 39707.10 crore in calendar year 2008 (till 7 October 2008).
As per provisional data released by the stock exchanges, foreign funds sold worth a net Rs 1055.51 crore on Wednesday, 8 October 2008. Domestic funds bought shares worth a net Rs 1083.56 crore.
South-bound journey may continue
The Asian indices are also currently fell over 6-10% in the ongoing trades. FII's remaining net sellers in equities is likely to exert more pressure on the local stocks. Among the key domestic indices, the Nifty could test the recent low of 3450 on the downside and a break below could see it decline to 3400, while on the upside the index has resistances at 3550 and 3600. The Sensex has a likely support at 11150 and may face resistance at 11450. Infosys Technology, Mastek, Sintex Industries, Bharat Bhushan, Indus Fila and International Housing are expected to announce their numbers.
US indices witnessed a sharp fall on Thursday as panicked investors dumped stocks across the board. While the Dow Jones dropped 679 points at 8579, the Nasdaq lost 95 points to close at 1645.
Indian ADRs took a cue from the falling local markets, however, only MTNL managed to end in positive territory on the US bourses with 10.36%. Among the major laggards Wipro, HDFC Bank & Dr Reddy's Lab tanked over 5-7%, while Infosys, Satyam, Tata Motors, ICICI Bank, VSNL Rediff and Patni Computer eased around 1-3% each.
Crude oil prices lost in the international market, with the Nymex light crude oil for November delivery down up by $2.36 to close at $86.59 per barrel. In the commodity space, the Comex gold for December delivery declined $20 to settle at $886.50 an ounce.
Trading Calls - Oct 10 2008
Considering the unprecedented carnage in the global financial markets and uncertainty over the fate of the US and other major economies, we would like to refrain from giving any intra-day trading ideas. We continue to advise caution at this stage.
Investors should stay on the sidelines till the global selloff abates and markets stabilise. One should not get carried away if there is any kind of a relief rally, as further selling is expected. Any advance in Indian stocks can only be sustained if global markets recover.
Daily News Roundup - Oct 10 2008
TCS acquires Citigroup Global Services for US$505mn and also gets US$2.5bn contract from Citi. (BS)
Tata Power may increase stake in Bumi Resources (ET)
M&M to launch green SUVs in US by early 2009 (ET)
Satyam Computers is considering Eastern Europe and Latin America as potential markets (ET)
Wockhardt signs a 10-year exclusive in-licensing agreement with UK-based pharma company to market a range of dermatology and dental products (ET)
Cairn is yet to receive ‘right of use’ for Rajasthan pipeline (BL)
ONGC may generate 4 lakh carbon credits by 2012 (BL)
Siemens sets up a new arm for rail transportation sector (BL)
US Department of Justice has withdrawn its motion against Ranbaxy. (ET)
Reliance Infra files an appeal against MERC order allowing Tata Power to sell 100MW to Tata Group’s power trading arm (BS)
Ashok Leyland’s September sales decline by 15% yoy (BS)
Mittal and Tata Steel are learnt to have shown interest in mining collaboration with Coal India (DNA)
Kotak Mahindra Bank has hiked deposit rates. (FE)
ACC plans expansion to retain market share (BS)
Tata Communication’s South African subsidiary plans to raise US$1bn in debt (BS)
BPCL in talks with Nippon for power via fuel cell technology (BS)
ONGC’s arm OVL seeks Kazakhstan oil company stake (DNA)
Videocon Group to set up IT park in Kolkata. (ET)
Videocon Industries plans to diversify into selling of power inverters and mobile phones. (Mint)
JSW Steel remains firm on expansion plans in spite of the economic crisis. (BS)
Dr.Reddy’s to stop innovative drug research at Perlecan Pharma, its wholly owned subsidiary, to freeze on R&D spends. (ET)
Essar Steel plans to invest Rs12bn to expand its steel and power capacity at Steel Algoma plant. (ET)
Nagarjuna Constructions has ruled out fund inflow from PE player Blackstone and is contemplating other routes of raising finance. (Mint)
Government has rejected a plan of Mahindra Defence Systems, a unit of M&M to set up a defence JV with an overseas company. (Mint)
US-based Merck is set to enter oncology segment in India (ET)
IDFC raises US$855mn under India Infrastructure fund. (BS)
SCI to buy four cargo ships for Rs16bn (ET)
IFC is likely to pump in US$74mn in United Phosphorous (FE)
Aspen Pharma and Matrix Labs enter into an asset-selling agreement (DNA)
Biocon arm launches cancer drug in UAE (BL)
Tata Chemicals to put Tanzanian JV on hold (ET)
Subex bags order from Norwegian telecom to deploy data integrity management solution. (BS)
Sterlite Technologies receives a contract from BSNL worth Rs240mn (DNA)
Elecon Engineering bags orders worth Rs520mn (BL)
Economic Front Page
Private airline carriers ask for Rs47bn bailout package from Government (BS)
Banks to stop lending to oil marketing companies owing to liquidity crunch and high debt (BS)
Finance ministry may ease norms for Indian non-infrastructure companies, especially those in manufacturing. (BS)
All proposals in respect to the telecommunication sector are now required to be approved by the Ministry of Home Affairs. (BS)
Government plans to make India a power equipment making hub. (BS)
Government rules out FDI in general retail (BS)
Commerce minister says FDI inflows have rose 124% in first five months of the current fiscal. (ET)
FIPB clears 17 FDI proposal worth Rs7.9bn. (ET)
Steel prices may decline 10% by FY10 (BS)
Hotels dish out discounts up to 50% to keep room occupancy steady (ET)
According to Trai, 30% of new mobile users are from rural areas (BL)
Government has decided to extend the rehabilitation package scheme for farmers by two years. (FE)
Railways to raise freight charges for iron ore movement (BL)
Don’t hurry, be happy!
Just think how happy you would be if you lost everything you have right now, and then got it back again.
The losing continues for investors and Dassehra may not be as auspicious as one would have wished. While we took a day's break, world markets continued to singe under mounting concerns that the financial mess could lead to a painful and protracted global recession. The only way to be relatively happy is to wait without plunging in. We know you have already committed sizeable amount of money. That should not tempt you to average because the rules of the game seemed to have changed.
All efforts to stop the plunge seem to be going nowhere, as money markets remain under extraordinary stress and investor confidence continues to sink. One may think that the selloff is overdone and that valuations have slumped to mouth-watering levels. There are not many takers for these theories and rightly so for the moment.
Given the relentless sell-off across global markets, particularly in the US and Asia, we expect another gap-down opening. Things could get worse, especially if there is no improvement in markets in Asia and Europe. There are fears that our market may come closer to the lower circuit levels.
Today is also an important day from the quarterly earnings' point of view, as IT major Infosys will announce its results for the July-September quarter. Market expectations are quite low once again, and there is a lurking fear that top software companies may miss estimates and could also revise down full-year guidance. On the whole, the bulls should brace for another bad day in office.
FIIs were net sellers of Rs10.55bn (provisional) in the cash segment on Wednesday while the local institutions pumped in Rs10.83bn. In the F&O segment, the foreign funds were net sellers at Rs2.05bn. On Tuesday, the FIIs were net sellers of Rs5.48bn in the cash segment. Mutual Funds pulled out Rs3.07bn on the same day.
US stocks plummeted anew on Thursday, with the Dow Jones Industrial Average plunging almost 700 points, as panic reigned supreme despite the concerted global effort to stop the bleeding in equity markets. What could have been a moderately down day ended up in another grim session, with the Dow losing by more than 7%, leaving it below 9,000 for the first time in five years.
One year after climbing to its peak of 14,164.53, the Dow sank 678.91 points, its third-largest point loss on record, to finish at 8,579.19, pushing the blue-chip index under the 9,000 level for the first time since August 2003. The Dow's close leaves it 5,585.34 points, or 39.4%, under its year-ago high.
The S&P 500 Index retreated for a seventh day, losing 75.02 points, or 7.6%, to 909.92 to cap its longest streak of daily declines since 1996. The financial sector led the losses with the broader market barometer's all 10 industry groups deep in the red. The Nasdaq Composite index lost 95 points or 5.5% to finish at 1,645.12, its lowest point since June 30, 2003.
A key measure of investor fear hit an all-time high amid a growing fear that the credit crisis will send the global economy into a deep recession. The CBOE Volatility (VIX) index, or the VIX, hit nearly 64.
Over the last seven sessions, the Dow has lost 2,271 points, or 20.1%. Since hitting an all-time high of 14,164.53 one year ago, the Dow has lost 39.4%.
One year ago today, the S&P 500 too hit an all-time high of 1565.15. As of Thursday's close, it was down 41.9%. The Nasdaq has never come close to its record of 5,048.62 hit on March 10, 2000, at the end of the tech bubble. But after hitting a six-year high of 2,859.12 this time last year, the Nasdaq had slipped 42.5%, as of Thursday's close.
In the busiest day in New York Stock Exchange history, panicky investors dumped stocks left, right and center.
General Motors (GM) lost 31% and Ford Motor fell 21% on reports that auto sales will hit recession levels this year and get worse in 2009. In response, S&P put GM and Ford's debt ratings on CreditWatch with a negative outlook.
IBM's better-than-expected earnings had lifted tech stocks in the morning, but even Big Blue got dragged down in the afternoon slump.
Former Dow component AIG plunged 25% on reports that it was taking a Fed loan of up to US$37.8bn. The insurance giant already received an US$85 billion Fed loan last month that helped it skirt bankruptcy.
Treasury prices slipped, raising the yields. The benchmark 10-year note fell, raising the corresponding yield to 3.76% on Thursday from 3.63% late on Wednesday.
On the economic front, weekly jobless claims edged off a seven-year high, but they still outpaced forecasts.
US light crude oil for November delivery fell US$2.36 to settle at US$86.59 a barrel on the New York Mercantile Exchange. Prices slipped on continued bets that the slowing global economy will hurt demand.
Oil prices have tumbled on bets of slowing demand since the price of crude hit an all-time high of US$147.27 a barrel on July 11. Gasoline prices decreased for the 22nd consecutive day, according to a survey of credit card activity by motorist group AAA.
COMEX gold for December delivery fell US$20 to settle at US$886.50 an ounce. In currency trading, the dollar gained against the euro and the yen. Treasury prices fell, raising their corresponding yields. Bank lending remained tight as nervous institutions continued to hoard cash.
After the close of trade, Citigroup said it failed to reach a deal with Wachovia. Citi said that although it will seek damages, it won't block a Wachovia-Wells Fargo merger.
GE is due to report earnings on Friday. In addition, President Bush is expected to make a statement in the morning, telling investors that economic officials are doing everything they can to stabilize our financial system.
Europe stocks faltered by the end of trading on Thursday, unable to hold on to early gains. Up as much as 2.7% earlier, the pan-European Dow Jones Stoxx 600 index dropped 2% to 221.77 as traders sold into early gains.
UK's FTSE 100 shed 1.2% to 4,313.80, while Germany's DAX 30 fell 2.5% to 4,887.00 and the French CAC-40 lost 1.6% to 3,442.70. In Iceland, trading has been halted until Monday as the government nationalized its largest lender, Kaupthing.
Among the emerging markets, the Russian RTS index shot up by nearly 11% to 844. Elsewhere, the Bovespa in Brazil was down 3.9% at 37,080 while the IPC index in Mexico dropped 1.8% to 20,310 and Turkey's ISE National 30 index rose 0.27% to 39,040.
Heavy selling in the index pivotals like Reliance Industries, Infosys and L&T coupled with a crash in the US and sharp decline in the Asian markets dragged the Indian bourses to open with a negative gap. The key indices hit fresh 2008 low post Sun-outage.
However, markets witnessed a strong recovery in the mid-afternoon trades. The solid bounce back was led by auto, pharma and select power stocks. The BSE benchmark Sensex recovered over 650 points and the NSE Nifty index recouped around 200 points from their respective day’s low. Te BSE benchmark Sensex ended 366 points lower to close 11,328 and the NSE Nifty index lost 92 points to close at 3,513.
Monnet Ispat, the sponge iron manufacturer has announced that it was planning to enter the services sector and provide total solution for setting up coal washeries, according to a report.
The company has reportedly said that it has tied up with Japan Coal Energy Centre (JCOAL) and Daniel of the US.
Monnet Ispat declined by over 15% to Rs241. The scrip touched an intra-day high of Rs270 and a low of Rs210 and recorded volumes of over 22,000 shares on BSE.
Compact Disc announced that the Board of Directors of the Company would meet on October 17, 2008 to consider offer from iMedia Ventures Ltd to invest USD 10mn in the expansion project of the Company and for buying 15% equity in the Company.
The stock was down by 9% at Rs35 hitting an intra-day high of Rs39 and a low of Rs33 and recorded volumes of over 40,000 shares on BSE.
Shares of HOV Services lost 10% to Rs57. According to reports, REcap partners LLC would acquire the company for ~Rs9.5bn. The scrip touched an intra-day high of Rs66 and a low of Rs57 and recorded volumes of over 20,000 shares on BSE.
Shares of Ranbaxy have rallied by over 6% to Rs270 after media reports stated that the US department of justice has withdrawn its motion against Ranbaxy. The scrip has touched an intra-day high of Rs276 and a low of Rs236 and has recorded volumes of over 12,00,000 shares on NSE.
Indiabulls Real Estate plunged by over 10% to Rs118 after the company announced that its Q2 profit plunged 77% to Rs80mn from Rs341.5mn a year earlier. However, net sales rose to Rs815.6mn from Rs252.7mn a year earlier.
The scrip touched an intra-day high of Rs132 and a low of Rs100 and recorded volumes of over 61,00,000 shares on BSE.
ONGC slipped 3% to Rs963. According to reports, ONGC Videsh Ltd., the overseas unit of ONGC was in talks with Iran for exploration of an oil block in the northern part of the country. The scrip touched an intra-day high of Rs981 and a low of Rs943 and recorded volumes of over 4,00,000 shares on BSE.
Bajaj Auto Finance was locked at 20% lower circuit at Rs77.55 after 3.2% of equity changes hands in a single trade. The scrip touched an intra-day high of Rs99.75 and a low of Rs77.55 and recorded volumes of over 12,00,000 shares on BSE.
Shares of United Spirits lost by over 17% to Rs939 after the company’s 1.34% equity shares changed hands in a single block trade. The scrip touched an intra-day high of Rs1095 and a low of Rs925 and recorded volumes of over 13,00,000 shares on BSE.
Bullion metals end mixed
Gold gives up more than $20 but silver gains
A strong dollar and profit taking among traders pushed precious metals lower today, Thursday, 09 October, 2008. It should be noted that since the past few days the yellow metal had gained after the stocks at Wall Street continued to plunge on global economic worries thereby strengthening the yellow metal’s demand as a safe haven for investment. But silver prices rose today. Investors generally tend to seek safety in gold when the economy falls into turmoil.
On Tuesday, Comex Gold for December delivery fell $20 (2.2%) to close at $886.5 an ounce on the New York Mercantile Exchange. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly since then.
For the third quarter ended September, 2008, gold prices ended lower by 5.1%. It was the first quarterly loss for the yellow metal since the second quarter in FY 2007. Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. For first quarter prices gained 10.7%. This year, gold prices have gained 5.9% till date.
On Thursday, Comex silver futures for December delivery slightly rose 11 cents (0.8%) to $11.88 an ounce. Silver had ended month and quarter of September 2008 with a loss of 10%. It ended August with a loss of 2.4% and July 2008 with a gain of 3%. For the second quarter, it had gained a paltry 1.4%. Silver had gained 16% in Q1. Till date, silver has lost 22% this year. The metal also had gained for seven straight years.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices and vice versa.
At the currency markets on Thursday, the U.S. dollar rose against other major currencies, with the dollar index climbing to 81.36, up from 80.879 in late North American trading.
US stocks plunged today after stocks at Wall Street witnessed a major sell off in the final hour of trading. The Dow ended lower by more than 650 points. In economic news of the day, the Labor Department reported reported that fewer Americans filed initial unemployment claims in the latest week even as the four-week average of initial claims rose amid the current economic slowdown. Initial claims fell by 20,000 to 478,000 in the week ended 4 October.
Apocalypse Now - DOW plunges below 9000
Stocks plunged Thursday, sending the Dow Jones industrial average down 679 points -- more than 7 percent -- to its lowest level in five years. Stocks took a nosedive after a major credit-rating agency said it might cut its rating on General Motors and Ford, further rattling investors already fretting over the impact of tight credit on the economy.
The Standard & Poor's 500 index also fell more than 7 percent.
The declines came on the one-year anniversary of the closing highs of the Dow and the S&P. The Dow has lost 5,585 points, or 39.4 percent, since closing at 14,164.53 on Oct. 9, 2007. It's the worst run for the Dow since the nearly two-year bear market that ended in December 1974 when the Dow lost 45 percent. The S&P 500, meanwhile, is off 655 points, or 41.9 percent, since recording its high of 1,565.15.
U.S. stock market paper losses totaled $872 billion Thursday and the value of shares over all has tumbled a stunning $8.33 trillion since last year's high. That's based on figures measured by the Dow Jones Wilshire 5000 Composite Index, which tracks 5,000 U.S.-based companies' stocks and represents almost all stocks traded in America.
Thursday's sell-off came as Standard & Poor's Ratings Services put General Motors Corp. and its finance affiliate GMAC LLC under review to see if its rating should be cut. The action means there is a 50 percent chance that S&P will lower GM's and GMAC's ratings in the next three months. GM has been struggling with weak car sales in North America.
S&P also put Ford Motor Co. on credit watch negative. The ratings agency said that GM and Ford have adequate liquidity now, but that could change in 2009.
via AP
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