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Monday, October 13, 2008
Asian Markets Bounce Back
Hang Seng Lead The Gain As It Surged By 10.2%
The stock markets across the Asian region showed some recovery ending the first day of the week on a mixed note as the G7 and G20 meetings over the weekend restored a little confidence. In background stocks on Wall Street finished Friday's volatile session mixed amid concerns about the outlook for the global economy as a result of the current credit crisis. The Dow and the S&P 500 set new five-year closing lows. While the Nasdaq managed to close in positive territory, the Dow and the S&P 500 slid back into the red. The Nasdaq closed up 4.4 points or 0.3% at 1,649.51, while the Dow closed down 128.0 points or 1.5% at 8,451.2 and the S&P 500 shed 10.7 points or 1.2% to finish at 899.2.
In commodities, November crude-oil futures rose $3.73 to $81.43 a barrel in electronic trading recently, after dropping $8.89 to close at $77.70 a barrel on the New York Mercantile Exchange Friday.
In currency market the euro rose against the dollar and U.S. stock futures surged after the U.S. government said that it would take stakes in banks and European leaders initiated a plan that includes buying of debt that banks issue. The US dollar was quoted at 6.8298 yuan.
The New Zealand dollar was trading at US$0.6122 in early afternoon, up slightly from US$0.6019 in early deals. The kiwi closed Friday's session at US$0.5930.
The South Korean won jumped against the U.S. dollar on expectations that the government might step up intervention to support its currency and that global efforts to tackle financial turmoil might help increase liquidity in the local market. In early trade, the won was quoted at 1,250.3 a dollar, up 58.8 a dollar from Friday's close. The won fell to as low as 1,460.0 a dollar on Friday, its weakest level since April 1998, but ended the volatile session higher for a second straight day.
The gain in Asian equities was also powered by the statement issued by the Group of Seven (G7) issued in its meeting in Washington DC addressing the ongoing financial crisis. According to the statement released, " the G-7 agreed that the current situation calls for urgent and exceptional action. We commit to continue working together to stabilize financial markets and restore the flow of credit, to support global economic growth. The group agreed to take decisive action and use all available tools to support systemically important financial institutions and prevent their failure.
It has also decided to take all necessary steps to unfreeze credit and money markets and ensure that banks and other financial institutions have broad access to liquidity and funding.
It will ensure that our banks and other major financial intermediaries, as needed, can raise capital from public as well as private sources, in sufficient amounts to re-establish confidence and permit them to continue lending to households and businesses.
It will also ensure that our respective national deposit insurance and guarantee programs are robust and consistent so that our retail depositors will continue to have confidence in the safety of their deposits.
The group has urged to take action, where appropriate, to restart the secondary markets for mortgages and other securitized assets. Accurate valuation and transparent disclosure of assets and consistent implementation of high quality accounting standards are necessary.
All this steps helped the equities to regain their confidence. The Australian and South Korean markets rebounded, but are off their highs, after policymakers around the world took steps, including guarantees on bank deposits and direct injection of capital into banks, to stem credit crisis. The Japanese market remained closed on account of a public holiday.
In Mainland China, the Shanghai stock index interrupted a weeklong fall to finish the session 3.6% higher, on sharp rebound in banks and financials after policy makers around the world took more bold moves to stem the financial crisis. The Shanghai Composite Index was 72.99 points, or 3.6% higher to 2,073.56, off the day’s high of 2,073.81 and low of 1,931.59.
On the economic front, China's trade surplus widened to a record in September, boosting the currency reserves that may shield the world's fourth-biggest economy from the global crisis. Exports rose 21.5% from a year earlier to $136.4 billion after gaining 21.1% in August. The trade surplus climbed to $29.3 billion, a figure derived by deducting the value of imports from the number for exports.
In another release, the National Bureau of Statistics said China’s consumer confidence index was 93.8 points in the quarter ended September 2008, down from 94.1 in the second quarter. The consumer expectations index, which focuses on economic outlook, decreased to 96.2 in the third quarter from 96.7 in the second quarter.
The Ministry of Commerce of China said that the Chinese companies had contracts abroad to provide outsourced services totaling 1.9 billion US dollars in the first eight months, up 17% from the same period last year.
In Hong Kong, the stocks shot sharply higher, recouping some of the steep losses from the previous week amid efforts by governments around the world to find a solution to the global financial crisis. The Hang Seng Index surged 1,515.29 points, or 10.2%, to end at 16,312.16, after losing more than 16% in the previous week. The index is still down 41.4% in 2008. The Hang Seng China Enterprises Index flared up 13.3% to 8,083.43.
The Australian stock market closed sharply higher, as word spread over the weekend that the government had moved to guarantee all deposits made by individuals into banks, credit unions, and building societies, which total about A$700 billion. The benchmark S&P/ASX 200 index was up 220 points or 5.55% at 4,180.70, after closing down 8.34% on Friday. The broader All Ordinaries index was gaining 202.40 points or 5.14% to 4,141.90.
On the economic front, a report released by Australia and New Zealand Banking Corp. showed that advertised job opportunities in Australia declined in September by a seasonally adjusted 1.4% from August.
In the meantime, Prime Minister Kevin Rudd said on Sunday, 12 October 2008, that the government would guarantee deposits held in Australian financial institutions for the next three years. The government also doubled to A$8 billion the funds available to improve liquidity in the financial markets
The New Zealand stock market closed the day on negative side after very volatile trading day. The continued its losing streak for the seventh day. The benchmark NZX 50 index was down by 22.92 points or 0.82% at 2,782.39 following Friday's 5% plunge. Prime Minister Helen Clark's assurance Sunday that the Government will guarantee all savers' deposits, taking on a liability worth up to NZ$150 billion to reassure local investors spooked by the worsening international crisis, also boosted market sentiment.
On the economic front, retail sales in New Zealand grew modestly in August due to higher spending at supermarkets. Statistics New Zealand reported that overall retail sales increased a seasonally adjusted 0.4%, or NZ$20, million over July.
The South Korean market closed today trading session in green as bargain hunting following Friday's steep losses. The benchmark Korea Composite Stock Price Index or KOSPI was up 47.06 points or 3.79% closing the day at 1,288.53.
On the economic front, the Bank Of Korea said that the sluggish economy and depreciation of the Korean won caused overseas spending by local travelers to fall this year for the first time since 2003. According to the Bank of Korea, foreign spending was US$10.02 billion in the first eight months of this year, down 6.1% from US$10.67 billion in the same period in 2007.
In Singapore the stock index finished the session sharp 6.6% higher on sharp rebound in banks and financials after policy makers around the world took more bold moves to stem the financial crisis. The market opened on a positive note after policymakers around the world took increasingly bold steps to rescue the financial system, including guaranteeing bank deposits and taking stakes in banks. The benchmark Straits Times Index was 128.02 points, or 6.57%, higher to 2,076.35.
In Philippines the stock exchange showed signs of strength for the first time in the current month as the markets edged up at a measurable pace as the benchmark index rose by as much as 2.2 % in early trade. The benchmark index PSEi went up by 0.99% or 20.95 points to 2,118.75, after it experienced the biggest drop since June 2006 on Friday, while the all shares index gained 0.85% or 11.78 points to 1,382.86. All six-sub indices also went up with property shares advancing the most by 3.21% or 22.20 points to 711.94.
In Thailand, the benchmark SET index ended positive as it gained by 5.39% or 24.37 points to end the session at 476.33. The market has gained on Monday after a consistent fall in the last week. The SET 100 recorded an increase of 6.64% or 44.31 points to close at 711.68. Likewise, the Set 50 rose by 7.07% or 22 points ending the session at 333.16.
In India, the domestic markets showed no sign of weakness today gaining consistently almost throughout the day on firm global equities. The BSE Sensex provisionally climbed 7.58%. Finance minister P Chidambaram's statement that the government was working on more measures to infuse liquidity in the banking system and increase the confidence of depositors and investors, aided the rebound in equities.
Core Projects and Technologies massive Fall
One of the probably many reasons why Core Projects and Technologies fell 58% today. Got any more dope ? Leave a comment
13/10/2008 512199 CORE PROJECT INDIABULLS FINANCIALS SERVICES LTD S 3100000 69.18
13-OCT-2008,COREPROTEC,Core Projects and Technol, IL AND FS FINANCIAL SERVICES LIMITED,SELL,604000,89.96,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,I360 STAFFING AND TRAINING SOLUTION PRIVATE LIMITED,SELL,500000,93.02,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,INDIABULLS FINANCIALS SERVICES LTD,SELL,3176793,69.06,-
BSE Bulk Deals to Watch - Oct 13 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
13/10/2008 519485 ASIA IND NET ATUL NAGINBHAI CHAUHAN S 22025 14.10
13/10/2008 530355 ASIAN OILFIE CONSOLIDATED SECURITIES LTD B 100000 46.58
13/10/2008 530355 ASIAN OILFIE AAP INVESTMENTS S 100000 46.41
13/10/2008 522059 CHAMPAGN IND MERILL LYNCH CAPITAL MARKETS ESPANA SA SV B 465000 222.00
13/10/2008 522059 CHAMPAGN IND MORGAN STANLEY MAURITIUS COMPANY LTD S 465000 222.00
13/10/2008 533026 CHEMCEL KAREPU SHYAM SUNDER B 200000 11.21
13/10/2008 533026 CHEMCEL KAREPU SAILAJA B 205000 10.93
13/10/2008 533026 CHEMCEL N D NISSAR B 1148589 9.52
13/10/2008 533026 CHEMCEL N D NISSAR S 1148589 9.51
13/10/2008 533026 CHEMCEL TAIB SEC MAURITIUS LTD S 521288 12.18
13/10/2008 512199 CORE PROJECT MARWADI SHARES AND FINANCE LIMITED B 841563 81.68
13/10/2008 512199 CORE PROJECT B K SHAH CO B 575391 84.23
13/10/2008 512199 CORE PROJECT MARWADI SHARES AND FINANCE LIMITED S 820563 76.47
13/10/2008 512199 CORE PROJECT INDIABULLS FINANCIALS SERVICES LTD S 3100000 69.18
13/10/2008 513059 G.S. AUTO SPJSTOCK B 69886 66.27
13/10/2008 513059 G.S. AUTO SPJSTOCK S 73239 64.70
13/10/2008 523676 GOLKU DIAM J SAKET SARAOGI B 24276 7.20
13/10/2008 523676 GOLKU DIAM J SHANTI KUMAR SARAOGI S 24276 7.20
13/10/2008 517354 HAVELLSINDIA WOODCREST INVESTMENT LTD B 775000 233.00
13/10/2008 517354 HAVELLSINDIA CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD S 550000 233.00
13/10/2008 511551 NETWO ST BRO THE RBS PLC AS TRUSTEE OF THE JUPITER INDIA FUND B 324502 25.92
13/10/2008 511551 NETWO ST BRO CHARLEMAGNE CAPITAL IOM LTD S 342030 25.96
13/10/2008 523670 NOIDA MEDI C SHABNAM MOTIHAR B 31912 11.18
13/10/2008 512618 RLF LIMITED PRADEEP AGARWAL B 225000 4.28
13/10/2008 512618 RLF LIMITED AJAY AGARWAL S 225000 4.28
13/10/2008 514304 S. KUMARS NAT MORGAN STANLEY MAURITIUS COMPANY LTD S 1085000 25.52
13/10/2008 503205 SHREE RAM GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD B 250649 73.00
13/10/2008 503205 SHREE RAM MORGAN STANLEY MAURITIUS COMPANY LTD S 250649 73.00
13/10/2008 519228 TEMPT.FOODS GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD B 1000000 265.00
13/10/2008 519228 TEMPT.FOODS MORGAN STANLEY MAURITIUS COMPANY LTD S 1000000 265.00
13/10/2008 506720 ZANDU PHAR W GREAT EQUIPMENT LEASING COMPANY PVT LTD B 6500 14940.00
13/10/2008 506720 ZANDU PHAR W DHARMENDRA MATHURADAS PARIKH B 10529 14939.82
13/10/2008 506720 ZANDU PHAR W HARENDRA PARIKH B 6717 14940.00
13/10/2008 506720 ZANDU PHAR W NAYANA KIRIT PARIKH B 5351 14940.00
13/10/2008 506720 ZANDU PHAR W GIRISH GOPALDAS PARIKH B 10047 14940.00
13/10/2008 506720 ZANDU PHAR W NEEPA JINESH PARIKH B 4392 14940.00
13/10/2008 506720 ZANDU PHAR W BINIT DHARMENDRA PARIKH S 4542 14940.00
13/10/2008 506720 ZANDU PHAR W SACHIN DHARMENDRA PARIKH S 4162 14940.00
13/10/2008 506720 ZANDU PHAR W KUSUM DHARMENDRA PARIKH S 6473 14940.00
13/10/2008 506720 ZANDU PHAR W KIRIT MATHURADAS PARIKH S 5351 14940.00
NSE Bulk Deals to WAtch - Oct 13 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
13-OCT-2008,ALPSINDUS,Alps Industries Ltd.,RAKESH GUPTA,BUY,361105,13.23,-
13-OCT-2008,AUSTRAL,Austral Coke & Projects L,SRI SALASAR SUPPLIER PVT LTD,BUY,150000,182.39,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,ALOSHA VANIJYA PVT LTD.,BUY,950000,86.80,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,AMBIT SECURITIES BROKING PVT. LTD.,BUY,507416,77.72,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,B K SHAH CO KETAN BHAILAL SHAH,BUY,481604,91.75,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,740264,78.16,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,MARWADI SHARES AND FINANCE LIMITED,BUY,671950,80.83,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,P R B SECURITIES PRIVATE LTD,BUY,1003190,81.94,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,R.M. SHARE TRADING PVT LTD,BUY,432803,72.95,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,YUVAK SHARE TRADING PVT LTD,BUY,479247,80.69,-
13-OCT-2008,IBREALEST,Indiabulls Real Estate Li,SHAIL INVESTMENTS PVT LTD,BUY,1450000,107.66,-
13-OCT-2008,KOHINOOR,Kohinoor Foods Limited,SUDHIR JAIN,BUY,225000,113.38,-
13-OCT-2008,PRAENG,Prajay Engineers Syndicat,CLSA (MAURITIUS) LIMITED,BUY,26000,21.40,-
13-OCT-2008,ZANDUPHARM,Zandu Pharma works Ltd,DHARMENDRA MATHURADAS PARIKH,BUY,6514,14880.00,-
13-OCT-2008,ZANDUPHARM,Zandu Pharma works Ltd,PRATIBHA HARENDRA PARIKH,BUY,6645,14880.00,-
13-OCT-2008,ALPSINDUS,Alps Industries Ltd.,PANKHURI INVESTEMENTS & SECURI,SELL,384302,13.23,-
13-OCT-2008,COREPROTEC,Core Projects and Technol, IL AND FS FINANCIAL SERVICES LIMITED,SELL,604000,89.96,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,AMBIT SECURITIES BROKING PVT. LTD.,SELL,507416,77.81,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,B K SHAH CO KETAN BHAILAL SHAH,SELL,464887,95.02,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,I360 STAFFING AND TRAINING SOLUTION PRIVATE LIMITED,SELL,500000,93.02,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,INDIABULLS FINANCIALS SERVICES LTD,SELL,3176793,69.06,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,740264,78.32,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,MARWADI SHARES AND FINANCE LIMITED,SELL,668950,80.43,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,P R B SECURITIES PRIVATE LTD,SELL,973940,84.46,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,R.M. SHARE TRADING PVT LTD,SELL,432803,73.25,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,YUVAK SHARE TRADING PVT LTD,SELL,479247,81.02,-
13-OCT-2008,EDUCOMP,Educomp Solutions Limited,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,103581,2192.05,-
13-OCT-2008,KALINDEE,Kalindee Rail Nirman (Eng,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,70482,89.93,-
13-OCT-2008,PRAENG,Prajay Engineers Syndicat,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,250273,19.46,-
13-OCT-2008,PRAENG,Prajay Engineers Syndicat,CLSA (MAURITIUS) LIMITED,SELL,265000,19.33,-
13-OCT-2008,ZANDUPHARM,Zandu Pharma works Ltd,GREAT EQUIPMENT LEASING CO PVT LTD,SELL,6514,14880.00,-
13-OCT-2008,ZANDUPHARM,Zandu Pharma works Ltd,HARENDRA PARIKH,SELL,6645,14880.00,-
Markets pull back
The bulls were back in action after successive days of battering, as the market taking a cue from the buoyant international indices registered phenomenal gains on the back of an all-round buying support. Starting the day (at 10,818) 290 points above its previous close, strong buying led by heavyweights, banking, capital goods, and consumer durable stocks triggered a major rally that propelled the index to an intra-day high of 11,361 in the afternoon trades. Though the Sensex held firm ground above 11,200 for the better part of the trading session, it finally ended at 11,337, up 804 points. The Nifty advanced 211 points to close at 3,491.
Among the gainers in heavyweights, Reliance Communications soared 19.92% at Rs284.70, Reliance Infrastructure flared up 17.13% at Rs603.55, ICICI Bank jumped 16.71% at Rs424.95, Sterlite Industries scaled up 15.99% at Rs318.10, HDFC Bank surged 12.58% at Rs1,178, State Bank of India added 12.19% at Rs1517, Mahindra & Mahindra jumped 11.78% at Rs520, BHEL advanced 11.61% and Larsen & Toubro gained 11.35% at Rs990.05. The remaining Sensex stocks gained above 5-6% each. However, Ranbaxy Laboratories and ONGC eased marginally.
The market breadth was extremely positive, Of the 2,672 stocks traded on the BSE, 1,687 stocks advanced whereas 926 stocks declined. Fifty nine stocks ended unchanged. On the sectoral front, the BSE Bankex led the gainers pack and surged 12.51% at 5,985 followed by BSE CG (up 10.36% at 8,810), BSE CD (up 10.26% at 2,359), BSE Power (up 9.08% at 2,023), BSE Realty (up 8.99% at 2,750) and BSE Teck (up 8.72% at 2,296).
More than 1.86 crore shares of Core Projects and Technologies changed hands on the BSE followed by Chemcel Bio-Tech (1.69 crore shares), ICICI Bank (1.12 crore shares), Chambal Fertilisers and Chemicals (0.97 crore shares) and IFCI (82 lakh shares).
Valuewise, ICICI Bank registered a turnover of Rs486 crore followed by Reliance Industries (Rs242 crore), Core Projects and Technologies (Rs153 crore), Reliance Capital (Rs153 crore), and State Bank of India (Rs151 crore).
Post Session Commentary - Oct 13 2008
Today domestic market rebound sharply on the beginning of the week. Markets closed with huge gains on value buying over the counters. Finance minister P Chidambaram''s statement that the government was working to increase liquidity in the banking system, also gave a boost to the positive sentiments of the investors. BSE Sensex ended above 11,300 level along with NSE Nifty around 3,500 mark. Markets opened with positive gap tracking gains from some Asian markets. The positive trading across Asian markets gave a fillip to the sentiments of domestic investors as huge relief measures are resorted by the respective countries across the world to hydrate the financial markets. Further markets continued to march ahead as benchmark indices witnessed huge buying interest. Markets gained ground further to end the day with strong gains. European markets also added to the positive sentiments as they opened with huge gap up and continued to trade in green. On the sectoral front, all indices ended in green. The Bank stocks outperformed the benchmark index with gains of more than 12% as RBI''s move of CRR cut will ease the liquidity of around Rs 60,000 crore in the system. Along with this, another Rs 25,000 crore is expected to be infused as a first installment of farm loan waiver scheme once the Cabinet clears the disbursement. Apart from that, Capital Goods, Metal, Oil & Gas, Reality, Consumer Durables and IT stocks were in limelight as witnesses most of the buying from these baskets. Midcap and Smallcap stocks also followed the same trend and ended with gains of more than 4% and 3% respectively.
Among the Sensex pack 28 stocks ended in positive terrain while 2 in red. The market breadth was positive as 1687 stocks closed in red while 926 stocks closed in green and 59 stocks remained unchanged.
The BSE Sensex closed higher by 804 points at 11,332.19 and NSE Nifty ended up by 210.75 points at 3,490.7. The BSE Mid Caps and Small Caps closed with gains of 162 points at 3838.96 and by 168 points at 4,524.16. The BSE Sensex touched intraday high of 11,361.32 and intraday low of 10,817.68.
Gainers from the BSE Sensex pack are Reliance Comm (19.92%), Reliance Infra (19.13%), ICICI Bank (16.71%), Sterlite Indus (15.99%), HDFC Bank (12.58%), SBI (12.19%), M&M Ltd (11.78%), BHEL (11.61%), L&T Ltd (11.35%) and Hindalco (10.66%).
Only two losers from BSE Sensex pack are Ranbaxy Lab (5.88%) and ONGC (1.02%).
The BSE Capital Goods index closed higher by 827.19 points at 8,810.23. Gainers are Suzlon Energy (16.39%), Crompton Greaves (12.42%), BHEL (11.61%), Punj Lloyd (11.45%), L&T Ltd (11.35%) and Siemens Ltd (11.31%).
The BSE Bank index gained 665.66 points to close at 5,985.66. Major gainers are Axis Bank (20.01%), ICICI Bank (16.71%), IDBI Bank (14.01%), HDFC Bank (12.58%), SBI (12.19%) and Yes Bank (10.46%).
The BSE Metal index advanced by 465.05 points to close at 7,007.62. Major gainers are Sterlite Indus (15.99%), JSW Steel (14.66%), Hindalco (10.66%), Gujarat NRE (10%), Ispat Indus (6.25%) and Tata Steel (5.65%).
The BSE Oil & Gas index surged 277.37 points to close at 7,549.68 as Cairn Indi (17.47%), Gail India (11.27%), HPCL (10.42%), Reliance Natural Resources (8.82%), Aban Offshore (8.03%) and Reliance Natural Petroleum (5.22%) ended in positive territory.
The BSE Reality index ended up by 226.89 points at 2,749.96. Gainers are Housing Dev (24.18%), Indiabull Real (21.53%), Parsvnath (15.27%), Sobha Dev (11.61%), Unitech Ltd (10.27%) and Akruti City (8.88%).
The Consumer Durables index gained 219.60 points to close at 2,359.10. As Titan Ind (18.74%), Videocon Ind (10.55%), Blue Star L (4.12%) and Rajesh Export (2.28%) and Titan Ind (4.61%) in positive territory.
Market recovers on firm global stocks
The domestic markets showed no sign of weakness today gaining consistently almost throughout the day on firm global equities. The BSE Sensex provisionally climbed 7.58%. Finance minister P Chidambaram's statement that the government was working on more measures to infuse liquidity in the banking system and increase the confidence of depositors and investors, aided the rebound in equities.
World stocks jumped from last week's four-year low after policymakers around the world took new and drastic steps to rescue banks and prevent the global economy from sinking into recession. The UK government injected 37 billion pounds ($63.95 billion) buying into leading UK banks while Australia and New Zealand guaranteed all bank deposits.
Trading in US index futures suggested the Dow would rise 327 points at the opening bell.
BSE's banking sector index Bankex was the major gainer among the sectoral indices on BSE, with ICICI Bank surging close to 17%. Reliance Communications jumped 19.92%, Reliance Infrastrucutre rose 17.13% and Sterlite Industries vaulted 15.99%. Shares of L&T and Bharat Heavy Electricals which make equipment for nuclear power plants, rose after India and US on Friday, 10 October 2008, signed the civilian nuclear deal.
Though the market breadth was strong as buying was witnessed across the board, the small-cap and mid-cap indices underperformed the Sensex.
As per the provisional figures, BSE 30-share Sensex was up 808.81 points or 7.58% to 11,336.66. The Sensex surged 833.47 points at day’s high of 11,361.32, in mid-afternoon trade. The index rose 289.83 points at the day's low of 10,817.68 at the onset of the trading session.
The S&P CNX Nifty was up 225.75 points or 6.88% to 3,505.70 as per the provisional figures.
The BSE clocked a turnover of Rs 3,852 crore today as compared to a turnover of Rs 5,107.30 crore on Friday, 10 October 2008.
The BSE Mid-Cap index was up 4.39% at 3,837.44 and the BSE Small-Cap index was up 3.77% at 4,519.64. Both the indices underperformed the Sensex.
The market breadth was strong. On BSE, 1,687 shares advanced as compared to 927 that declined. 59 shares remained unchanged.
Reliance Communications (up 19.92% to Rs 284.70), Reliance Infrastrucutre (up 17.13% to Rs 603.55), Sterlite Industries (up 15.99% to Rs 318.10), Mahindra & Mahindra (up 11.79% to Rs 520) , spurted from the Sensex pack.
India’s largest private sector company by market capitalization and oil refiner Reliance Industries rose 3.08% to Rs 1,574. A block deal of 3.01 lakh shares at Rs 1569.90 was struck on the counter on BSE today.
Capital goods stock extended gains after India and the US signed the 123 agreement on Friday, 10 October 2008, to open up sales of civilian nuclear technology to India. Larsen & Toubro, Bharat Heavy Electricals and Suzlon Energy rose between 11.61% to 16.39%. Punj Lloyd, ABB and Crompton Greaves gained more than 10% each.
Banking stocks spurted. BSE's banking sector index Bankex rose 12.51.% to 5,985.16 and was a major gainer from the sectoral indices on BSE. India’s second largest bank by net profit ICICI Bank spurted 16.71% to Rs 424.95 after the bank's chief executive K.V. Kamath today said deposits with the bank are safe, and that the bank had a cushion to take domestic and overseas shocks. His statements came amid concerns about ICICI Bank's exposure to the global financial crisis, which has send the stock crashing on the bourses. The stock had fallen 19.7% on Friday, 10 October 2008, recording a sharpest single day fall.
Other major lenders, State Bank of India and HDFC Bank rose more than 12% each. Yes Bank gained more than 10%.
Axis Bank rose 20.01% to Rs 662.80 after the private sector bank reported 76.85% surge in net profit to Rs 402.91 crore on 57.3% rise in total income to Rs 3,239.45 crore in Q2 September 2008 over Q2 September 2006. The bank announced the result during market hours today.
India’s largest telecom services provider by market share Bharti Airtel rose 6.76% to Rs 738. The companyadded 2.70 million mobile users in September 2008, unchanged from August 2008.
India’s largest aluminum maker by sales Hindalco Industries jumped 10.73% to Rs 89.30 on reports the aluminium-maker’s Rs 5,047-crore rights issue managed to sail through due to underwriting by promoters and banks.
Sintex Industries rose close to 10% after a block deal of 2.5 lakh shares was struck on the counter at Rs 212 on BSE.
Jain Irrigation Systems climbed close to 10% after a block deal of 3 lakh shares was struck on the counter at Rs 303 on BSE.
Emco fell 4% even as the company announced that a joint venture of the company is in advance talks to acquire 2 transformer makers in South Africa.
Zandu Pharmaceuticals Works fell 1.2% to Rs 14,900. A block deal of 19,549 shares was struck at Rs 14,880 on NSE.
Finance Minister P Chidambaram today said the Indian economy continues to grow at a satisfactory rate. The finance minister also said the slide in commodity and crude oil prices will have a beneficial impact on inflation. He said the Indian services sector is growing at a brisk rate. He said the ratio of investments to GDP remains high. The ratio was above 35% in Q1 June 2008.
The Reserve Bank of India chief Duvvuri Subbarao on Friday, 10 October 2008 said that India may escape the worst consequences of the global financial crisis due to its strong internal drivers for growth but money, debt and credit markets may be impacted indirectly.
In Europe, key benchmark indices in UK, Germany and France were up between 4.93% to 6.93% on reports 3 major UK banks will get an unprecedented 37 billion-pound ($64 billion) bailout from the UK government.
Asian markets were mostly higher today, 13 October 2008. Hong Kong's Hang Seng, China's Shanghai Composite,Singapore's Straits Times, and South Korea's Seoul Composite rose between 3.65% to 9.35%. Taiwan's Taiwan Weighted fell 2.15%.
Crude oil for November 2008 delivery rose as much as $3.37, or 4.3%, to $81.07 a barrel on the New York Mercantile Exchange today 13 Ocober 2008.
The domestic bourses had suffered heavy losses on Friday, 10 October 2008 on the back of global sell-off and on data showing dismal industrial production growth in August 2008. The BSE 30-share Sensex had lost 800.51 points or 7.07% to 10,527.86 and the S&P CNX Nifty was down 233.70 points or 6.65% to 3,279.95, on that day.
A global sell-off triggered the biggest weekly fall for Indian indices since 1990, last week. Fears the deepening credit crisis will push the global economy into recession, rattled stock markets across the globe. 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.
Chemcel Biotech ends at 68% discount over IPO price
At Rs 5.15 on BSE as against issue price of Rs 16
Chemcel Biotech settled at Rs 5.15 on BSE, a discount of 67.81% against issue price of Rs 16.
On BSE, 1.69 crore shares changed hands on the Chemcel Biotech counter. The stock hit a high of Rs 16 and a low of Rs 4.75. The stock debuted today at Rs 16, the same level at which it had priced the initial pubilc offer (IPO).
The fixed price offering, priced at Rs 16, ended on 12 September 2008 with 1.83 times subscription. It received applications for 2.53 crore shares, as against the net issue of 1.38 crore shares offered.
Chemcel Biotech, engaged in manufacturing of agrochemicals and planning to expand into bio-diesel business, entered the capital market with an initial public offering of 1.54 crore equity shares of Rs 10 each at a premium of Rs 6 per share.
As a part of its expansion plans, Chemcel proposes to set up a bio-diesel manufacturing plant at a cost of Rs 10.95 crore at Kondapalli near Vijaywada, Andhra Pradesh, with a capacity of 20 tonnes per day (tpd) of three shifts. It will also meet additional working capital needs on account of increased operations for the agrochemical & bio fertilizer division at Rs 9.45 crore.
Chemcel Biotech's net profit rose 30.9% to Rs 1.23 crore on a 5.3% increase in sales to Rs 24.58 crore in the year ended March 2008 over the year ended March 2007.
Market may remain volatile
The market may witness cautious trend as US indices ended on a flat note on Friday and Asian indices are exhibiting upward trends in morning trades. Although the market may resume positive, investors should maintain caution as profit-taking at higher levels may pull down the market. Among the local indices the Nifty could test 3200 on the downside while on the upper side it may move up to 3330. The Sensex has a likely support at 10400 and may face resistance at 10600.
US indices finished on a flate note on Friday. While the Dow Jones ended in negative at 8451 declined by 128 points, the Nasdaq up by 4 points at 1650.
Indian floats too followed the suit and ended weak on US bourses. ICICI Bank tumbled 20.17% while HDFC Bank, Wipro, Infosys and Rediff fell 4-6% each. Dr Reddy's, VSNL and MTNL lost marginally. Tata Motors, however, gained 1.72% and Satyam added 1.39%.
Crude oil prices in the international market slipped, with the Nymex light crude oil for October delivery slipped by $8.89 at $77.70 a barrel. In the commodity segment, the Comex gold for December series lost $27.50 to settle at $859 an ounce.
Bullion metals drop for second straight day
Gold manages to end week higher by more than 3%
A strong dollar and profit taking among traders pushed precious metals lower for second straight day on Friday, 10 October, 2008. It should be noted that before that 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. Silver prices also fell on that day. Investors generally tend to seek safety in gold when the economy falls into turmoil.
On Friday, Comex Gold for December delivery fell $27.5 (3.1%) to close at $859 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 week, gold prices ended higher by 3.1%.
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 2.8% till date.
On Friday, Comex silver futures for December delivery fell 9% to $10.6 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 31% 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 Friday, the dollar index, which measures the currency against a trade-weighted basket of counterparts, rallied 1.9%.
Market may recover in volatile trade
Key benchmark indices may see some respite today, 13 October 2008 after posting biggest weekly loss ever, boosted by worldwide measures to support markets amid the global financial turmoil. Wall Street futures indicated a sharp surge ahead of the opening bell on Monday. The Dow Jones Industrial futures jumped 235 points and the Nasdaq futures added 22 points. However high volatility may not be ruled out.
On Friday, 10 October 2008, the US President George Bush along with the finance ministers of seven of the world's most powerful economies in the White House Rose Garden pledged to work together to resolve the crisis that has paralyzed global markets. Bush said that they will do what it takes to resolve this crisis so that the world's economy will emerge stronger. The G-7 countries pledged to act in concert in five areas including expanding bank deposit insurance, providing capital to shaky financial institutions and developing better asset accounting rules.
The Finance Minister Palaniappan Chidambaram will make a statement on the market situation today, 13 October 2008.
The Reserve Bank of India chief Duvvuri Subbarao on Friday, 10 October 2008 said that India may escape the worst consequences of the global financial crisis due to its strong internal drivers for growth but money, debt and credit markets may be impacted indirectly.
Meanwhile in the midst of the largest financial crisis in recent times, India and the US triumphantly signed the 123 agreement on Friday, 10 October 2008, to open up sales of civilian nuclear technology to India for the first time in three decades. This ends India’s nuclear isolation and capping the three-year dramatic journey of the nuclear deal. The deal offers India access to US technology and cheap atomic energy in return for allowing UN inspections of some of its civilian nuclear facilities -- but not military nuclear sites.
Asian markets were trading mixed today, 13 October 2008. China's Shanghai Composite slipped 1.85% or 36.94 points at 1,963.62, Singapore's Straits Times was down 0.13% or 2.54 points at 1,945.79, Taiwan's Taiwan Weighted plunged 3.05% or 156.26 points at 4,974.45. However, Hong Kong's Hang Seng rose 0.84% or 124 point at 14,920.87 and South Korea's Seoul Composite gained 1.41% or 17.46 points at 1,258.93
US markets ended mixed on Friday, 13 October 2008 after a rollercoaster session. The Dow saw its biggest point swing ever, a 1000 point swing. It recovered from a 697 points tumble and rose as much as 322 points in the last hour as an industry group said the bankruptcy auction of Lehman Brothers' debt won't worsen credit losses. The Dow plunged 128 points, or 1.49%, to 8,451.49 and the S&P 500 index lost 10.70 points or 1.18%, to 899.22. However the Nasdaq Composite index gained 4.39 points, or 0.27%, to 1,649.51.
Back home, the bourses suffered heavy losses on Friday, 10 October 2008 on the back of global sell-off and on data showing dismal industrial production growth in August 2008. The BSE 30-share Sensex ended down 800.51 points or 7.07% to 10,527.86 and the S&P CNX Nifty was down 233.70 points or 6.65% to 3,279.95, on that day.
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. 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.
Foreign institutional investors (FIIs) were net equity sellers worth Rs 2513.74 crore while mutual funds bought shares worth Rs 1744.68 crore on Friday, 10 October 2008, according to provisional data on NSE.
FIIs were net buyers of Rs 161.80 crore in the futures & options segment on Friday, 10 October 2008. They were net sellers of index futures to the tune of Rs 8.47 crore while bought index options worth Rs 32.26 crore. They were net buyers of stock futures to the tune of Rs 142.70 crore while sold stock options worth Rs 4.69 crore.
Pre Session Commentary - Oct 13 2008
Today Markets are likely to open positive as the markets have already shed enough after heavy blood bath on Friday. One can expect some value buying today but the sentiments would still be negative amidst concerns of financial crisis across the world. The Asian markets have also opened mixed as some indexes are showing some rebound. In the domestic arena there is not much good news to support the markets; however the relief of bearishness in the global markets would cool down the bears in the domestic markets too. The inflation too has declined by 19bps to 11.80% from 11.99%.
On Friday, domestic Markets were butchered ruthlessly on the back of negative cues from the US and Asian Markets. After a heavy blood bath session of the opening the markets recovered some points as RBI announced the 150bps cut off on the CRR through which it would pump Rs.60,000 crore in the banking industry. However after the IIP numbers came up the markets dwindle into deep red territory showing no sign of recovery. The IIP numbers for the month of August was at 1.3% versus 10.9% (YoY). There was also news from the EAC member about the decelerating and industrial recession. Terrible selling was seen on Realty, CD, Metal and CG indices recording fall of 11.30%, 10.11%, 9.25% and 9.22% respectively. During the trading session we expect the market to be trading range bound.
The BSE Sensex closed at 10,527.85 registering a heavy fall of 800.51 points and NSE Nifty fell by 233.7 points to close at 3,513.65. The BSE Mid Caps and Small Caps closed with loss of 334.48 points and 343.74 points at 3,676.00 and 4,355.45. The BSE Sensex touched intraday high of 10,904.13, and intraday low of 10,239.76.
On Friday, the US market closed mixed after a volatile session trading. The economic news was not good as GE posted a 10 year low quarter earnings of $0.47 per share. Further out of ten economic sectors, eight sectors reported losses. The weak credit markets and a very high sense of uncertainty kept the markets in volatility. Goldman Sachs and Morgan Stanley suffered some burns after Moddy’s reviewed their credit rating with a downgrade. 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 128 points at 8451.19, However NASDAQ index managed to close in green with a gain of 4.39 points at 11649.51 and the S&P 500 (SPX) also declined by 10.70 points to close at 899.22 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 mixed. The Shanghai Composite is low by 68.32 points and trading at 1,931.75. Further Japan''s Nikkei is low by 881.06 points at 8,276.43, however Straits Times is trading high by 24.39 points at 1,972.72 and South Korea’s Seoul Composite is also high by 30.17 points at 1,271.64.
The FIIs on Friday stood as net sellers in equity and Debt. Gross equity purchased stood at Rs3016.70 Crore and gross debt purchased stood at Rs58.10 Crore, while the gross equity sold stood at Rs3864.40 Crore and gross debt sold stood at Rs241.10 Crore. Therefore, the net investment of equity and debt reported were (Rs847.70 Crore) and (Rs182.90 Crore) respectively.
On Friday, the partially convertible rupee ended at 48.38/43 per dollar after it touched a life time low of 49.30 per dollar. The rupee is anticipated to touch Rs.50/ dollar in another one month time. The RBI on the other hand is pumping Rs.60,000 Crore through the CRR cut by 150bps so as to bring some liquidity in the market. The RBI was also selling dollar though commercial banks to give the rupee some level of support from intense falling.
On BSE, total number of shares traded were 32.10 crores and total turnover stood at Rs5,107.30 Crore. On NSE, total volumes of shares traded were 64.59 crores and total turnover was Rs14,743.54 Crore.
On NSE Future and Options, total number of contracts traded in index futures was 1150335 with a total turnover of Rs17921.64 Crore. Along with this total number of contracts traded in stock futures were 1011762 with a total turnover of Rs12326.98 Crore. Total number of contracts for index options was 920958 and total turnover was Rs17337 Crore and total number of contracts for stock options was 47869 and notional turnover was Rs693.62 Crore.
Today, Nifty would have a support at 3,300 and resistance at 3,590 and BSE Sensex has support at 10,450 and resistance at 11,150.
Daily Call - Oct 13 2008
The Dow fell 700 points on Friday and then reversed to close with just 128 points loss. With the Dow piercing the 8000 mark and bouncing back from 7882 levels, a temporary bottom seems to have been made. At the weekend, the failure of the G7 to come out with a concrete plan to support the banking sector, weighed heavily on the futures market. But the steps taken by the Eurozone countries and UK to infuse capital in their banks, seem to have improved sentiment.
It remains to be seen, what these efforts are and whether they will be able to actually stem the tide. Our take is, the markets have failed to react positively to such moves earlier, but because of the sharp declines already seen in the US on Friday and for two days in India, it may be a trading opportunity as the shorts scamper to cover. Japanese markets are closed for the Sports Day holiday.
Trading Calls - Oct 13 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.
Gather some courage!
Courage is the discovery that you may not win, and trying when you know you can lose.
Good Morning. It’s been a while since we wished you a Good Morning on a Monday. The reasons are best known to you. The bulls are likely to show some courage after suffering one of the worst ever week. US stock benchmarks rebounded on Friday, with the technology-laden Nasdaq even managing a positive finish. What's more, major Asian markets that are open for trading this morning (barring China and Taiwan) are well in the green. The Japanese markets are shut for a holiday. The Dow Jones Industrial Average futures are up over 200 points.
As far as strategy is concerned, remain on high alert despite today's positive undertone, as the global economy is most likely to slip into a recession and India's growth too will be hit badly. There is still widespread skepticism over the steps taken to unfreeze the world credit markets. It will be a while before things start looking up on a sustained basis.
The much-needed breath of fresh air comes in the wake of yet another busy weekend for the world's leading nations. Leaders of the world's most industrialised countries gathered in Washington to thrash out fresh measures to try and stop the non-stop bleeding across equity markets. The G7 has laid out a 5-point plan to combat the unprecedented financial crisis. The European Union (EU) has finally set aside their differences and has announced its own bailout package.
The Government, the RBI and other regulators are likely to take more steps to shore up liquidity and boost market sentiment. The RBI has already pumped in Rs600bn by slashing the CRR by 150 basis points. The Centre may announce some more measures to ease the credit crunch in the wake of the grim set of economic numbers (IIP and Infrastructure Growth). The RBI may go for further cuts in the CRR and even SLR, if the situation so demands.
In the meantime, India Inc. will continue to publish their report card for the July-September quarter. Among the top companies that will announce their results today include Axis Bank, BASF India, Indo Tech Transformers, Orbit Corp., Refex Refrigerants and Repro India.
Other countries also took fresh action Sunday to support their economies. Australia, New Zealand, the United Arab Emirates and Saudi Arabia have all reportedly moved to guarantee bank deposits. The Australian dollar has soared the most since it began freely trading and New Zealand's currency also advanced. The euro rose the most in three weeks against the dollar and the yen.
Billionaire investor George Soros says that the European leaders' rescue plan is a positive step that may help stabilise global financial markets. IMF MD Dominique Strauss-Kahn says that leading countries now have coordinated, detailed and comprehensive plans to resolve the severe credit crisis. He says almost all the affected nations now have taken strong action to shore up their financial sectors.
FIIs were net sellers of Rs25.13bn (provisional) in the cash segment on Friday while the local institutions pumped in Rs17.45bn. In the F&O segment, the foreign funds were net buyers at Rs1.62bn. On Thursday, FIIs were net sellers of Rs8.48bn in the cash segment, taking their total outflows this year to more than $10bn.
US stocks ended with only marginal declines on Friday, led by the blue chip Dow Jones Industrial Average, which bounced back from a decline of as much as 697 points. Credit markets remained tight, although short-term lending showed some improvement from recent days. Bond prices fell, raising the corresponding yields. The dollar gained versus the yen and fell against the euro. Oil, gas and gold prices fell.
The Dow lost 128 points, or 1.5%, while the Standard & Poor's 500 index was down 1.2% and the Nasdaq Composite ended 0.3% higher, following a seven session losing streak. For the week, the Dow fell just over 1,874 points, or 18%, its worst weekly decline ever on both a point and percentage basis. Wall Street lost roughly $2.4 trillion in market value during the week, according to losses in the Dow Jones Wilshire 5000, the broadest measure of the market.
Market breadth was negative. On the New York Stock Exchange (NYSE), losers beat winners five to three on volume of 2.95bn shares. On the Nasdaq, decliners topped advancers almost by a narrow margin on volume of 4.27bn shares.
In the first five minutes of trade on Friday, the Dow plunged 697 points, falling below 7,900 to the lowest point since March 17, 2003. The Nasdaq and S&P also hit more than five-year lows. But stocks recovered abruptly, with the Dow erasing losses. The afternoon saw the Dow make violent swings back and forth across the breakeven line, toppling as much as 600 points and rising 322 points.
The Dow has now tumbled for eight consecutive sessions, losing nearly 2,400 points, or 22%, as panicked investors ditched stocks across the board. US stocks have plunged despite a series of efforts on the part of the government to unfreeze the credit markets and get money flowing through the system again.
Since hitting all-time highs a year ago, the Dow has lost just over 40% and the S&P 500 has lost 43%. The Nasdaq has not come close to reclaiming its tech-bubble record, but it did hit multi-year highs last October. Since then, the Nasdaq has fallen just over 42%.
Investor fear is at an all-time high. The CBOE Volatility (VIX) index, or the VIX, hit a record just shy of 77 Friday afternoon before pulling back a bit.
Investors across the board are pulling money out of equities, with $43.3bn pulled out of stock mutual funds during the week ended Oct. 8.
Oil, gold and other commodities slumped on slowdown fears, and that dragged down oil services, metal and mining and other underlying stocks.
The benchmark 10-year note rallied to 3.88% from 3.76% on Thursday. Treasury bond markets closed early on Friday and are closed on Monday for Columbus Day.
Oil prices plunged to a 13-month low Friday on bets that the slowing global economy will drag down oil demand. US light crude oil for November delivery fell $8.89 to settle at $77.70 a barrel on the New York Mercantile Exchange, the second biggest single-day drop ever.
Oil prices have tumbled on bets of slowing demand since the price of crude hit an all-time high of $147.27 a barrel on July 11. Gasoline price decreased for the 23rd consecutive day, according to a survey of credit card activity by motorist group AAA.
COMEX gold for December delivery tumbled $27.50 to settle at $859 an ounce. In currency trading, the dollar gained against the euro and the yen.
Shares in Europe recorded another massive one-day fall on Friday. The pan-European Dow Jones Stoxx 600 index fell 7.5% to 205.17, which ranks among the worst one-day performances on record for the index.
On Oct. 6, the index closed down 7.6% - its worst one-day drop ever - kicking off a week when the Stoxx 600 fell more than 20%. Some strategists called last week a bear market within a bear market as the Stoxx 600 is down close to 44% in the last year.
French CAC-40 slumped 6.8% to 3,207.86, while Germany's DAX 30 plunged 7% to 4,544.31 and the UK's FTSE 100 dropped 8.5% to 3,947.78.
In the emerging markets, the Russian markets remained closed. Elsewhere, the Bovespa in Brazil was down by almost 4% at 35,609 while the IPC index in Mexico dropped nearly 2% to 19,905 and Turkey's ISE National 30 index dived close to 7% to 36,314.
Sharp cut in the global markets and heavy selling in the realty, banking, capital goods and metal stocks dragged the BSE benchmark Sensex to hit fresh lows of 10,239.7.
The benchmark index however managed to recover from the day's low and touched a high of 10,904 on the back that the central bank cut CRR by 150 bps as against 50 bps announced earlier in the week.
The recovery, however, was short loved as disappointing IIP figures yet again dragged the index to lower levels. Finally, the BSE benchmark Sensex ended 800 points lower to close 10,527 and the NSE Nifty index lost 233 points to close at 3,279.
Market breath slightly was weak, 2,186 stocks declined against 384 advances, while, 49 stocks remained unchanged.
Among the BSE Sectoral indices, BSE Realty index (down 11.3%), BSE Consumer Durables index (down 10.1%), BSE Metal index (down 9.2%), BSE Capital Goods index (down 9.2%) and BSE Power index (down 9%).
ICICI Bank sharply recovered by over 6% after hitting 52-week low of Rs327.
The stock plummeted by over 20% at Rs364 the most since its trading debut in September 1997. The scrip touched an intra-day high of Rs423 and a low of Rs326 and recorded volumes of over 1,00,00,000 shares on BSE.
The RBI and FM, P Chidambaram in the previous week issued statements reassuring investors that the bank has enough capital. ICICI’s Joint Managing Director, Chanda Kochhar reassured investors stating that the bank enough liquidity.
Shares of Infosys recovered sharply after hitting an intra-day low of Rs1040. The stock ended at Rs1226 recovering nearly 10% lower by only 2.2%. The scrip touched an intra-day high of Rs1281 and a low of Rs1040 and recorded volumes of over 91,00,000 shares on BSE.
The company announced financial results for the fiscal second quarter ended September 30, 2008. The company has posted a consolidated net profit of Rs14.32bn versus Rs13.02bn in the previous quarter. This translates into a sequential growth of nearly 10%.
Consolidated revenue for the reporting quarter is at Rs54.18bn, up 11.6% over the April-June quarter. Earnings per share (EPS) for the second quarter has increased to Rs25.02 from Rs22.75 in the first quarter.
"We have revised our US dollar revenue guidance to reflect the current economic situation and the drastic depreciation of major global currencies against the US dollar," said S. Gopalakrishnan, CEO and MD, Infosys. "The challenging environment provides interesting opportunities for transformational service providers like us".
DLF clarified that with reference to headlines in the financial newspapers ‘Standard Chartered Bank had sanctioned a loan to DLF but refused to disburse the same’. The company said that facts are far from truth as there has been no impending transaction by DLF with Standard Chartered Bank or any other bank, and as a result, the question of refusing disbursement does not arise.
DLF slipped by 8% to Rs281. The scrip touched an intra-day high of Rs304 and a low of Rs279 and recorded volumes of over 21,00,000 shares on BSE.
HCL Technologies does not rule out new bidder for Axon.(BL)
NHPC postpones IPO plan on market crisis.(BL)
Tata Teleservices sets off losses of Rs51bn in a biggest write-off by an Indian firm.(Mint)
Infosys Technologies says it would not increase its takeover offer bid for Axon.(FE)
Satyam Computer Services has reportedly been banned from doing any off-shore work with the World Bank.(DNA)
NHPC, PTC and J & K’s Power Development Corp. sign a JV for tapping 2,100MW on the Chenab basin.(ET)
ITC's fashion brand ‘Wills Lifestyle’ will have 100 stores in the next two years from the present 55.(DNA)
Hindustan Zinc reduces prices of zinc and lead.(ET)
3i Group to invest Rs9.9bn in Krishnapatnam port project.(Mint)
Kingfisher Airlines to delay new routes.(ET)
NPCIL to order 2,000MT uranium by year end.(BS)
Chattisgarh government looking to speed up the award of a 1,350MW power project and a coal mine to state owned mineral trading firm MMTC.(Mint)
Vishal Retail to add 100 stores by 2009.(ET)
HCL Technologies to close Axon deal by 24th October.(ET)
Tata Steel to start work at Orissa plant in 3 months.(BS)
Norway based Telenor may buy majority stake in Unitech’s telecom arm for US$1.5bn.(TOI)
Zee Entertainment expands presence in South with launch of a new regional channel in Tamil.(BL)
Tata Motors will roll out a 0.5 tonne payload version of ‘Ace’ light truck.(ET)
Tata Motors is amongst potential buyers of Ford’s stake in Mazda Motor.(TOI)
S Kumars to purchase Italian fabrics firm.(ET)
GE, Areva may tie up with domestic firms for reactors.(BS)
BSNL’s 3G service to roll out in December.(BL)
Aurobindo Pharma receives final approval from US FDA to manufacture and market generic version of ‘Flexeril’ tablets for relief of muscle spasm.(BL)
Hero Honda to roll out seven bikes.(ET)
Hindustan Sanitaryware plans acquisitions in Europe; in talks with companies focusing on high end products.(BL)
Economic Front Page
Forex reserves drop US$7.9bn during the week ended Oct 3 to US$283.9bn.(DNA)
India reports a drop in IIP growth to 1.3% in August from 10.9% a year ago.(FE)
India added 7.32mn new GSM users in September.(BL)
RBI cuts CRR by 150 bps to 7.5%.(FE)
Cement firms’ Q2 advance tax declines 35% yoy.(ET)
Road Ministry suggests a further increase of 33 to 50% in the base fees to be levied on most of the vehicle categories plying over bridges, bypass or tunnels.(BL)
Government may ban short selling in the futures and cash segment in stock markets.(TOI)
India's WPI rose 11.80% in 12 months to September 27, below previous week's rise of 11.99%.(FE)
I&B Ministry is examining the options to end the multiple taxation of DTH & cable operators through central and state levies.(FE)
Domestic airlines carry 9.44mn passengers in June-August, an 11.2% drop from last year.(Mint)
Fertilizer subsidy may fall below Rs1tn mark.(ET)
Finance Ministry asks DoT to speed up 3G auction process, so that operators can roll out services as early as possible.(FE)
Oil companies issue notices to domestic airlines on aviation fuel dies.(BL)
RBI governor hints at repo rate cut to ease credit crunch.(FE)
Steel companies urge government to levy 20% import duty on steel or completely ban its imports for the next three months.(ET)
Indian steel makers may cut prices and as also production in tandem with dip in demand market.(Mint)
India, US sign nuclear deal.(ET)
Easing of foreign ownership in banking may be delayed.(Mint)
Asian Development Bank asked the government to almost halve the size of UMPPs to help firms get funds.(ET)
Government may amend AS21 to plug gaps in accounting practices.(ET)
ICICI - safe - RBI
Country's leading private sector lender ICICI Bank, whose shares tumbled by 20 percent on Friday, has a high capital adequacy ratio of 13.97 percent, well above that of State Bank of India (SBI) and HDFC Bank during 2007-08, says a RBI report.
The capital adequacy ratio of the ICICI Bank, according to the central bank's recent profile of the Indian banking industry, was also well above the industry average of 13 percent.
As against the Capital to Risk Weighted Assets Ratio (CRAR) of the ICICI Bank at 13.97 percent, the SBI had a CRAR of 12.64 percent and HDFC 13.60 percent.
CRAR reflects the ability of a bank to deal with loan defaults, and as per the RBI guidelines, every bank is required to maintain capital adequacy ratio.
The shares of the ICICI Bank during the last week went down by 27.83 percent on the Bombay Stock Exchange to close at Rs 364.
According to the RBI analysis, CRAR of private banks at 14.30 percent for 2007-08 was higher compared to the PSU and foreign banks.
The average CRAR of the nationalised banks stood at 12.10 percent while that of foreign banks at 13.10 percent for the year 2007-08. State Bank of India and its associates had an average CRAR of 13.20 percent, with SBI's capital adequacy ratio stood at 12.64 percent, below the group average.
Among the nationalised banks, Canara Bank's CRAR at 13.25 percent was higher than the industry average.
The CRAR of foreign banks such as Standard Chartered Bank, HSBC and Citibank stood at 10.59 percent, 10.59 percent and 12 percent respectively, below the industry average.
ACC - Sell
We recommend a sell in ACC from a short-term trading perspective. It is clearly evident from the charts of ACC that it was on a medium-term uptrend from its July low of Rs 462 (a 52-week low) to early September high of Rs 659. However, subsequently the stock began to lose its bullish momentum and formed lower peak. In early October, the stock commenced to decline and it breached the 21- and 50-day moving averages.
On October 8, ACC declined 3 per cent, penetrating the medium-term up trendline. The stock appears to have resumed its long-term downtrend.
Both daily and weekly relative strength indices (RSI) are featuring in the bearish zone. The daily moving average convergence and divergence (MACD) is signalling a sell and is on the verge of entering the negative territory. We are bearish on the stock from a short-term perspective. We expect the stock’s decline to prolong further until it hits our price target of Rs 485 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 570.
via BL
ICICI Bank - Firefighting
ICICI Bank sent the following mail to its customers
ICICI Bank
**********
Dear Customer,
We are aware that you are being misled by numerous malicious and
baseless rumors. Many of these are via SMSes. Many of our customers
have written in to us expressing solidarity and confidence in our
relationship, and have mentioned they have dismissed these rumors, for
which we are grateful. Still we know that these rumors may cause you
distress and doubts. You are our valued customer and we would not like
you to have any of these feelings. So we have now chosen to write to
you directly to allay your concerns if any.
You would have seen the categorical endorsement of the soundness of
Indian banking as well as ICICI Bank's sound financial health from the
RBI and the Finance Minister. You would have also read about the
unequivocal certificate of confidence reposed on us by S&P an
independent rating agency of repute. We have categorically and in a
transparent manner disclosed that
-We have ZERO exposure, directly or indirectly, to US sub-prime
-We have 150% more capital than what Banks are required to have, and we
are one of the highest capitalized banks in the country
-We have a AAA rating
-We have sound liquidity to meet your needs whenever you need and in
what ever amounts you may need
Your bank has grown and achieved its status of pre-eminence due to the
patronage and trust you have reposed thus far in us. We have made many
an Indian smile with a house, car and every banking need dreamed of by
Indians. I am sure nothing factually or otherwise has changed in our
relationship that we should let baseless rumors cast doubts in your
mind. We once again want to reaffirm to you that the bank you have
built and assisted to grow to pre-eminence will be with you day and
night. We take pride in serving you and being the bank of your first
choice.
We desire and request the continuance of your unwavering trust and
relationship. We promise to you that not only your deposits but all
your interests are safe and secure with us. In case you need to reach
us, kindly write to us at customer.care@icicibank.com.
Sincerely
V. Vaidyanathan
Executive Director
ICICI Bank Ltd
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