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Monday, October 20, 2008
BSE Bulk Deals to Watch - Oct 20 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
20/10/2008 500003 AEGIS LOGIS VIJAY KEDIA B 100000 70.53
20/10/2008 531223 ANJANI SYNTH PUNNI SANGHAVI S 150000 18.10
20/10/2008 532989 BAFNA PHARMA PR VYAPAAR PRIVATE LIMITED S 100000 14.73
20/10/2008 532149 BANK OF INDIA MORGAN STANLEY MAURITIUS COMPANY LIMITED B 3537000 295.75
20/10/2008 532149 BANK OF INDIA MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S.V. S 3537000 295.75
20/10/2008 532413 CEREBRA INT SRINIVASA R VARADARAJAN B 40650 10.36
20/10/2008 511728 KZLEASING ANJALI YOGESH PANDYA B 18571 14.16
20/10/2008 511728 KZLEASING ANJALI YOGESH PANDYA S 18093 14.27
20/10/2008 532805 REDINGTON MORGAN STANLEY MAURITIUS COMPANY LIMITED B 698240 197.00
20/10/2008 532805 REDINGTON MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S.V. S 698240 197.00
20/10/2008 526407 RIT PRO IND NILESH KUMAR LAHOTI B 50000 52.06
20/10/2008 530461 SABOO SOD CH CHIRAGPURI KAILASHPURI GOSWAMI B 100000 9.65
20/10/2008 530461 SABOO SOD CH AAP INVESTMENTS S 72768 9.67
20/10/2008 521034 SOMA TEX IND BEST CHOICE FINVEST AND CONSULTANTS PVT LTD B 945000 29.00
20/10/2008 521034 SOMA TEX IND SOPHIA GROWTH A SHARE CLASS OF SOMEREST INDIA FUND GDR S 900000 29.00
20/10/2008 511730 TRC FINAN SE LRS PORTFOLIO AND ADV SER P LTD B 27338 10.13
20/10/2008 511730 TRC FINAN SE SHRENIK.V.MEHTA S 35940 10.19
20/10/2008 532765 USHER AGRO ASHOK COMERCIAL B 103000 137.97
NSE Bulk Deals to Watch - Oct 20 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
20-OCT-2008,ASIANHOTEL,Asian Hotels Ltd.,SHIV KUMAR JATIA,BUY,194008,270.00,-
20-OCT-2008,AURIONPRO,Aurionpro Solutions Limit,RELIALNCE CAPITAL MUTUAL FUND,BUY,139720,130.00,-
20-OCT-2008,ELGIEQUIP,Elgi Equipments Ltd,DOSHI NIMESH ARVIND,BUY,369900,33.96,-
20-OCT-2008,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,BUY,1547761,127.16,-
20-OCT-2008,HDIL,Housing Development and I,TOTAL SECURITIES LIMITED,BUY,1620962,127.82,-
20-OCT-2008,JSWSTEEL,JSW Steel Limited,HC MAURITIUS LTD,BUY,4199356,257.65,-
20-OCT-2008,LOGIXMICRO,Logix Microsystems Limite,AMITA R SHETH,BUY,210000,60.00,-
20-OCT-2008,MAHLIFE,Mahindra Lifespace DevLtd,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,1071908,250.53,-
20-OCT-2008,SURANATELE,Surana Telecom Ltd.,MRO TEK LIMITED,BUY,130620,24.51,-
20-OCT-2008,ZICOM,Zicom Electronic Security,SHEETAL SANJAY PALECHA HUF,BUY,90000,45.08,-
20-OCT-2008,ASIANHOTEL,Asian Hotels Ltd.,ASIAN HOLDING (P) LTD,SELL,194008,270.00,-
20-OCT-2008,AURIONPRO,Aurionpro Solutions Limit,HSBC BANK (MAURITIUS) LIMITED,SELL,141300,130.02,-
20-OCT-2008,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,SELL,1552489,127.30,-
20-OCT-2008,HDIL,Housing Development and I,TOTAL SECURITIES LIMITED,SELL,1620962,127.86,-
20-OCT-2008,JSWSTEEL,JSW Steel Limited,MACQUARIE BANK LIMITED,SELL,4199356,257.65,-
20-OCT-2008,LOGIXMICRO,Logix Microsystems Limite,KANAIYALAL M. SHETH,SELL,210000,60.00,-
20-OCT-2008,MAHLIFE,Mahindra Lifespace DevLtd,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,931950,251.00,-
Nifty futures at a premium
Turnover surges
Nifty October 2008 futures were at 3141, at a premium of 18.20 points as compared to spot closing of 3122.80. NSE's futures & options (F&O) segment turnover was Rs 51,272.30 crore, which was higher than Rs 43,767.13 crore on Friday, 17 October 2008.
NTPC October 2008 futures were at premium at 152.35 compared to the spot closing of 151.50.
ICICI Bank October 2008 futures were at premium at 411.70 compared to the spot closing of 411.35.
Reliance Capital October 2008 futures were at discount at 655.80 compared to the spot closing of 656.60.
In the cash market, the S&P CNX Nifty gained 48.45 points or 1.58% at 3122.80.
Post Session Commentary - Oct 20 2008
From previous week''s sharp sell off, today domestic markets have rebounded but in a tepid manner. Markets opened with positive note tracking favorable cues from Asian markets that gave a fillip to the sentiments of domestic investors. However, markets pared some of its gains after initial surge, due to fears of recession lingering. The indices were about to loose all its gains in the mid session and there came a surprise from RBI with 100 bps cut in the repo rate to 8%. Nevertheless, markets closed with gains on value buying over the counters led by positive response from Asian and European market. BSE Sensex ended above 10,200 level along with NSE Nifty above 3,100 mark. Markets managed to end the day in green zone but were below the days high. European markets also added to the positive sentiments as they opened gap up and continued to trade in green. On the sectoral front, The IT stocks outperformed the benchmark index with gains of more than 8%. Along with this, Bank, Metal, Oil & Gas and FMCG stocks were in limelight as witnesses most of the buying from these baskets. However, Reality, Capital Goods, Power and Auto stocks remained out favor. Midcap and Smallcap stocks also followed the same trend and ended with loss of more than 1% each.
Among the Sensex pack 20 stocks ended in positive terrain while 10 in red. The market breadth was negative as 1643 stocks closed in red while 920 stocks closed in green and 53 stocks remained unchanged.
The BSE Sensex closed higher by 247.74 points at 10,223.09 and NSE Nifty ended up by 48.45 points at 3,122.80. The BSE Mid Caps and Small Caps closed with losses of 38.49 points at 3,506.35 and by 55.04 points at 4,112.82. The BSE Sensex touched intraday high of 10,538.05 and intraday low of 10,023.08.
Gainers from the BSE Sensex pack are TCS Ltd (9.47%), Wipro Ltd (8.95%), Satytam Computer (8.67%), Infosys Tech (7.92%)), HDFC Bank (12.74% HDFC Bank (5.94%),), HDFC (5.73%), L&T Ltd (11.15%) ICICI Bank (4.95 %), Bharti Airtel (4.62%), ITC Ltd (4.07%) and MAruti Suzuki (2.67%).
Losers from BSE Sensex pack are Bhel (5.24%), Grasim Industries (7.96%), DLF Ltd (6.40%), ACC Ltd (6.13%), M&M Ltd (5.39%), Tata Power (3.72%) and Reliance Infra (1.87%).
The IT index gained 204.19 points to close at 2,471.46 as HCL Tech (10.23%), Rolta India (9.74%), TCS Ltd (9.47%), Wipro Ltd (8.95%), Satytam Computer (8.67%) and Infosys Tech (7.92%) in positive territory.
The BSE Bank index advanced 149.03 points to close at 5,695.72. Major gainers are HDFC Bank (5.94%), Canara Bank (5.05%), ICICI Bank (4.95 %), Yes Bank (3.26%), Bank of Baroda (2.80%) and Indian Overseas Bank (2.04%).
The BSE Metal index went up by 85.65 points to close at 5,887.36. Major gainers are Steel Authority (7.05%), JSW Steel (5.79%), Gujarat NRE (4.05%), Hindalco (1.95%), Ispat Indus (1.89%) and Tata Steel (1.75%).
The BSE Pharma index surged 51.47 points to close at 3,260.49 as Dr Reddy’s Lab (9.09%), Sun Pharma (7.02%), Lupin Ltd (4.57%), Glenmark Pharma (3.07%), Wockhardt Ltd(2.84%), and Aurobindo Pharma (2.18%) ended in positive territory.
The BSE Reality index ended down by 94.28 points at 2,430.61. Losers are Orbit Co (8.67%), Parsvnath (7.80%), DLF Ltd (6.40%), Omaxe Ltd (5.78%), Unitech Ltd (5.66%) and Ansal Infra (5.59%).
The BSE Capital Goods index closed lower by 70.86 points at 7,170.50. Losers are BHEL (8.24%), Elecon Eng C (4.95%), Alstom Proje (4.45%), Havell’s India (4.21%), Usha Martin (4.06%) and Walchand Industries (3.38%).
Last minute buying lifts market
While majority of the global markets took a dip today, the domestic indices shrugged off the intra-day volatility and registered decent gains at close. The Sensex opened at 10,160 (185 points above its previous close) and advanced further to touch an intra-day high of 10,538 in the early trades. After displaying sideways movement for a while the Sensex tumbled sharply in the early noon trades to touch the day's low of 10,023, only 248 points up from its last close.
The last hour of the trading session witnessed hectic activity, before selective buying saw the Sensex end in the green with a gain of 248 points at 10,223. The Nifty, too, after a mixed outing, moved up 48 points to close at 3,123.
However, the broader market was negative. Of the 2,616 stocks traded on the BSE, 1,623 stocks declined whereas 938 stocks advanced. Fifty five stocks ended unchanged.
Among the sectoral indices, the BSE IT led the surge and rose 8.05% at 2,741. The BSE Teck, BSE Bankex, BSE FMCG and BSE HC were the other notable gainers while BSE Realty, BSE Power and BSE CG ended weak.
Buying was led by Tata Consultancy Services, which notched up gains of 9.47% at Rs497.15. Among the other gainers Wipro advanced 8.95% at Rs280.65, Satyam Computer Services added 8.67% at Rs289, Infosys Technologies moved up 7.92% at Rs1,297.80, HDFC Bank jumped by 5.94% at Rs1,084.85, HDFC gained 5.73% at Rs1878.35 and ICICI Bank was up 4.95% at Rs411.10. However, BHEL, Grasim Industries, DLF, ACC, Mahindra & Mahindra, Tata Power and Reliance Infrastructure were down by 1-8% each.
A sharp rally was witnessed in IT stocks today. HCL Technologies soared 10.23% at Rs172.90, Rolta India scaled up 9.74% at Rs186.55, Tech Mahindra surged 7.39% at Rs370.45 and Mphasis moved up 6.90% at Rs185.95. Oracle Financial Services Software, Patni Computer Systems and Moser Bear India also ended higher.
Over 1.17 crore shares of Reliance Natural Resources changed hands on the BSE followed by Reliance Petroleum (0.94 crore shares), Chambal Fertilisers and Chemicals (82.38 lakh shares), Cals Refineries (63.36 lakh shares) and Housing Development and Infrastructure (61.01 lakh shares).
Asian Markets Set A Tone For Rebound
Sensex, Seoul Regain From Their Low While Taiex, PSEi Close Lower
The stock markets across the Asian region have turned mixed after a firm starts. News that the United States will host a summit of Group of Eight and other major economies on the global financial crisis and South Korean government's $130 billion rescue package for banks and markets initially boosted investor sentiment, but lingering concerns about a global recession put a damper on early gains.
Meanwhile, the U.S. stocks finished lower on Friday. The Dow closed down 127 points or 1.4% at 8,852, the Nasdaq closed down 6 points or 0.4% at 1,711, and the S&P 500 closed down nearly 6 points or 0.6% at 940.
Oil rose for a second day on Monday amid hopes that OPEC would slash output to shore up prices. Crude oil for November delivery gained as much as $2.15, or 3 percent, to $74 a barrel in electronic trading on the New York Mercantile Exchange, and traded at $73.95 at 2:59 p.m. in Singapore.
In currency market, the U.S. dollar strengthened to trade in the lower 102-yen levels in late Tokyo deals from the mid 101-yen range in early trade and lower 101-yen levels late Friday
The Australian dollar closed firmer following a rally in the stock market. Traders also overlooked the highest quarterly producer prices index in a decade. The Aussie dollar finished the session at US$0.6993-0.6996, up from Friday's close of US$0.6888-0.6892.
The New Zealand dollar fell against the dollar ahead of inflation data and a hefty cut in official interest rates. The kiwi finished the local session at US$0.6120, down from US$0.6155 in early trade and US$0.6181 late Friday.
The South Korean won rose against the U.S. dollar. The won closed at 1,315.0 a dollar, up from Friday's domestic close of 1,334.0 a dollar, as government's measures to ease liquidity crunch lifted investor sentiment.
The US dollar jumped to its highest level in nearly one and a half -year against the Philippine peso. The dollar-peso pair reached 48.2650, its highest point since April 2007 during the trading session. Now the currency is trading at 48.11 against the US dollar
Coming back in equities, the Japanese stock market closed sharply higher, extending Friday's gains. The market started off higher despite a weak lead from Wall Street and the key Nikkei index closed above the 9,000 mark after bargain hunting picked up momentum in the afternoon session. Additionally, a weaker yen supported the exporters. The 225-issue Nikkei index closed up 311.77 points, or 3.6%, at 9,005.59, ending above 9,000 for the first time in 3 trading days. The Topix index of all the first-section issues advanced 33.08 points, or 3.7%, to 927.37 after gaining 29.77 points in the previous session.
On the economic front, Japan's Cabinet Office said in a final report that the leading index fell to 89 in August from 91.4 in July. The August reading was revised from 89.3 reported initially. Meanwhile, the coincident economic index logged a reading of 100.6 in August, down from an initially estimated 100.7 and 103.5 seen in the previous month. At the same time, the lagging index came in at 100.5 versus 100.2 reported previously. The index was also down from previous month's 101.
The Chinese stock market closed higher, extending Friday's gains, on expectations that the government would take necessary measures to boost the economy as third-quarter economic data released today confirmed a slowdown. The benchmark Shanghai Composite Index closed up 43.36 points or 2.25% at 1,974.01, after falling as low as 1,890.92 in morning trade.
Among a slew of economic data released today, China's GDP rose 9.9% on year in the nine months to September, and rose 9.0% on year in the third quarter. Growth slowed from 10.6% in the first quarter and 10.1% in the second. T
The National Bureau of Statistics also said that industrial value-added output rose 11.4% on year-over-year basis in September, slowing from the 12.8% increase in August.
In another release from the same house, the consumer price index (CPI)- the main gauge of inflation, rose 4.6% in September over the same period last year. The figure, compared with 7.1 percent in June, 6.3 percent in July, 4.9 percent in August and a nearly 12-year-high of 8.7 percent in February.
In the first nine months of this year, the inflation indicator rose 7.0 percent from the same period last year: 6.7 percent for urban areas and 7.7 percent for the countryside. The growth rate was 0.9 percentage points lower than that in the first half.
In Hong Kong, the Hang Seng Index jumped 5.28% to 15,323.01, while the Hang Seng China Enterprises Index soared 6.2% to 7,441.13.
The Australian stock market closed sharply higher, ending a three-day losing streak. The market started off higher, despite a weak lead from Wall Street, and extended its gains on bargain hunting following recent steep losses in the banking and resources sectors. The S&P/ASX 200 index climbed 171.5 points, or 4.3%, to 4,142.3 and the broader All Ordinaries index advanced 157.9 points, or 3.9%, to 4,098.7.
On the economic front, the Australian Bureau of Statistics said that producer price index for the third quarter rose 5.6% annually compared to a 4.7% gain in the second quarter. The report added that the producer prices grew 2.0% on quarter in the third quarter.
Meanwhile, the Department of Employment announced that annual wages in Australia climbed an average of 4.0% on year in the second quarter of 2008 from the 3.7% annual increase in the first quarter.
The New Zealand stock market closed sharply higher. The market opened sharply higher despite a weak lead from Wall Street and extended its gains for the second consecutive trading session. The benchmark NZX 50 index closed up 81.16 points, or 2.89%, at 2,889.92.
On the economic front, Statistics New Zealand reported Monday that the value of credit and debit card spending in New Zealand increased by a seasonally adjusted 0.8% in September compared to August, driven largely by non-retail industries. Retail transactions were flat. The core retail sales, which excludes motor vehicle related transactions, was down 0.4% in September following a 1.6% increase in August.
Meanwhile, businesses in New Zealand's services sector reported reduced activity for the third straight month in September, according to the latest Performance of Services Index reading. The Bank of New Zealand/Business New Zealand survey showed a drop of 1.0 point to an index reading of 46.9, with readings below 50.0 indicating contraction in the measured sector. It marked the second lowest reading for the index since the series began in April 2007.
The South Korean stock market closed higher, snapping a three-day losing streak. Seoul stocks rebounded from a three-year low hit on Friday as investors bought stocks following South Korean government's $130 billion financial rescue package for banks and stock market. The benchmark Korea Composite Stock Price Index or KOSPI finished a volatile session up 26.96 points, or 2.28%, at 1,207.63, as gains in the stock markets in the Asian region offset investors' doubts over the effectiveness of the government's financial stabilization package.
South Korea announced that it would provide $100 billion worth of state guarantees for local banks' foreign debts as part of efforts to ease the dollar shortage in the local financial sector and shore up market confidence. The government and the central bank will also provide $30 billion to local banks and exporters by using its foreign reserve holdings. Despite the sweeping measures the Kospi fluctuated, dipping 2.65% at one point.
On the economic front, South Korea's central bank said that the nation's economic growth is set to slow in coming months, as exports are likely to lose steam due to a global economic downturn amid sluggish domestic demand.
The Philippines stock market slid 1.68% to its lowest level in more than two years. The benchmark index PSEi went down 1.68% or 35.38 points to 2,062.88 - the lowest since 20 June 2006, while the all shares index retreated by 1.12% or 15.05 points to 1,328.62.
On the economic front, As of end-August 2008, the non-performing loans (NPL) ratio of universal and commercial banks (U/KBs) eased further to 3.88 % from the previous month's 3.98 % and year ago's 5.28 % ratios. The industry sustained an improving trend for the past 6 months and kept the NPL ratio below 4 % for the past 3 months.
The month-on-month improvement in the ratio occurred as the 1.07 % decline in NPLs was complemented by the 1.45 % expansion in total loan portfolio (TLP). NPLs went down to P91.53 billion from last month's P92.52 billion while TLP expanded to P2, 360.56 billion from P2, 326.82 billion.
Another release for the day showed the Philippines registering a budget deficit of 21.6 billion pesos ($449 million) in September as spending surged under government plans to spur growth to shield the economy from the global financial crisis.
In India, the Key benchmark indices pared large part of the earlier strong gains as index pivotals came off their highs in afternoon trade. The slide was in continuation of the trend witnessed in early afternoon trade when the market had pared gains soon after an initial surge triggered by the surprise announcement of a rate cut by the central bank.
At 15.30 IST, the BSE 30-share Sensex was up 312.26 points or 3.13% to 10,287.61. The index surged 562.70 points at the day's high of 10,538.05 in afternoon trade soon after the announcement of the rate cut by the RBI. The S&P CNX Nifty was up 2.14% to 3,140.05.
On the economic front, the Reserve Bank of India decided to reduce the repo rate under the Liquidity Adjustment Facility (LAF) by 100 basis points to 8.0 % with immediate effect.
In the adjoining statement, the Reserve Bank of India said that it has been continuously monitoring the monetary and liquidity conditions with a view to maintaining domestic macroeconomic and financial stability in the context of the global financial crisis. The Reserve Bank has taken a number of measures over the last one-month to augment domestic and forex liquidity.
In Taiwan, the stock markets continued to linger in red following a negative lead from Wall Street. The losses in financial sector amid a high-profile money-laundering probe related to former president Chen Shui-bian. However, the market recovered from a negative undertone as local authorities' move to extend the curbs on daily allowable falls in share prices. Taiwan's financial regulators said they have extended the effectivity of a 3.5% daily limit for downward movements of share prices by another week, until 24 Oct 2008. The usual limit is 7%.
Taiex - the benchmark index continued to remain below the key 5,000 points level breaching the five-year low level in the intraday transaction. The weighted index closed down 28.56 points or 0.58% at 4,931.8 - the lowest level since 30 June 2003 when it ended at 4,872.15 points. However, the index successfully crossed the five-year low by dipping down to 4,805.68 in the intraday transaction.
In other regional markets, European shares rose, as oil firms advanced, ING retook some of the previous session's heavy losses and investors welcomed earnings from Ericsson. Overall, the German DAX 30 index climbed 1.2% to 4,840.91, the French CAC-40 index rose 1% to 3,364.22 and the U.K. FTSE 100 index advanced 0.4% to 4,077.78.
On the economic front, U.K’s M4 money supply and M4 lending rose at a faster than expected pace in September. According to preliminary estimations by the Bank of England September show a 1.5% increase in M4, and a 12.2% increase from September last year. Market analysts had advanced a 11,3% year on year increase in September. M4 lending rose by 30.6 billion in September; an increase by 1.3% from August, and a 12.3% rise year on year.
Rate cut, firm global markets lift Sensex by 248 points
Central bank’s repo rate cut provided a much needed respite rally to the investors which have seen a massive erosion in their wealth in the past few days. The volatility was high and the market breadth was weak, indicating a cautious undertone. The BSE Sensex rose 247.74 points or 2.48%. Firm Asian and European markets provided added support to domestic bourses.
Fall in interest rate boosts stocks as it results in lower borrowing costs for corporates. The Reserve Bank of India (RBI), today, cut the repo rate, by 100 basis points to 8% with immediate effect. Repo rate is the rate at which the RBI provides funds to banks against the collateral of government bonds for a day to three days.
Banking stocks and IT stocks rose. Satyam Computer Services and Wipro rose more than 8.5% each while Tata Consultancy Services rose more than 9%.
Asian and European stocks were firm as investors took comfort in global efforts to prop up the banking system, allowing for some bargain hunting. Trading in US index futures suggested the Dow would rise 141 points at the opening bell.
The BSE 30-share Sensex jumped 247.74 points or 2.48% to 10,223.09. The index surged 562.70 points at the day's high of 10,538.05 in afternoon trade soon after the announcement of the rate cut by the RBI at about 12:45 IST. The Sensex rose 47.93 points at day’s low of 10,023.28 in mid-afternoon trade.
The S&P CNX Nifty was up 48.45 points or 1.58% to 3,122.80.
BSE clocked a turnover of Rs 3,684 crore today as compared to a turnover of Rs 4,134.51 crore on 17 October 2008.
From a recent high of 11,483.40 on 14 October 2008, Sensex had tumbled 1508.05 points or 13.13% to 9975.35 on Friday, 17 October 2008. The barometer index is down 10,063.90 points or 49.6% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 10,983.68 points or 51.79% below its all-time high of 21,206.77 struck on 10 January 2008.
Nifty October 2008 futures were at 3141, at a premium of 18.20 points as compared to spot closing of 3122.80. NSE's futures & options (F&O) segment turnover was Rs 51,272.30 crore, which was higher than Rs 43,767.13 crore on Friday, 17 October 2008.
The BSE Mid-Cap index was down 1.09% at 3,506.35 and The BSE Small-Cap index was down 1.32% at 4,112.82. Both the indices underperformed the Sensex.
Only a few sectors outperfored the Sensex. BSE IT index (up 8.05% to 2,741.46), BSE Teck index (up 5.45% to 2,181), BSE Bankex (up 2.69% to 5,695.72) outperformed the Sensex.
BSE Realty index (down 3.73% to 2,430.61), BSE Power index (down 1.99% to 1,678.22), BSE Capital Goods index (down 0.98% to 7,170.50), BSE Auto index (down 0.87% to 3,072.52), BSE PSU index (down 0.4% to 5,241.63), BSE Consumer Durables index (was flat at 2,085.28), BSE Oil & Gas index (up 0.66% to 6,522.50), BSE Metal index (up 1.48% to 5,887.36), BSE HealthCare index (up 1.6 % to 3,260.49), BSE FMCG index (up 2.08% to 1,897.58) underperformed the Sensex.
The market breadth was negative. On BSE, 920 shares advanced as compared to 1643 that declined. 53 shares remained unchanged.
Battered Reliance Industries, India's largest private sector company by market capitalization and oil refiner Reliance Industries, rose 1.23% to Rs 1,321.25. The stock came off the day’s high of Rs 1,379.90. From a recent high of Rs 1619.70 on 14 October 2008, the stock plunged 19.41% to Rs 1,438 on 17 October 2008 on concerns of fall in refining margins.
India’s largest drug maker by sales Ranbaxy Laboratories rose 2.15% to Rs 261.70. Japan's Daiichi Sankyo has acquired 52.5% of Ranbaxy Laboratories making the Indian firm a subsidiary, the two companies said in a joint statement today. Daiichi Sankyo bought shares from Ranbaxy's founders and through an open offer from other shareholders. It also subscribed to shares and warrants worth $736 million, the statement said. Daiichi Sankyo had agreed in June 2008 to take over Ranbaxy in a deal worth up to $4.6 billion.
From the pack of 30 Sensex stocks, 20 rose. Bharti Airtel (up 4.62% to Rs 708.05), ITC (up 4.07% to Rs 165) and Jaiprakash Associates (up 1.42% to Rs 67.70) were among the top gainers from the Sensex pack.
Grasim Industries (down 7.96% to Rs 1,190.50), Reliance Communications (down 0.79% to Rs 232.10) and Tata Power Company (down 3.72% to Rs 720.40) were the losers from the Sensex pack.
India’s largest cement maker by sales ACC fell 6.13% to Rs 459.05 off day’s high of Rs 513. Reliance Infrastructure fell 1.87% to Rs 481.55 off day’s high of Rs 522.
Most lenders rose on hopes lower rates will boost lending. However, the prices were choppy. HDFC Bank, India’s second largest private sector bank by net profit, which last week reported strong Q2 results, rose 5.94% to Rs 1,084.85. The stock came off the day’s high of Rs 1,113. The bank's net profit rose 43.2% to Rs 527.98 crore on 62.8% growth in total income to Rs 4,634.32 crore in Q2 September 2008 over Q2 September 2007 on 16 October 2008.
ICICI Bank and State Bank of India rose between 1.43% to 4.95%. India’s largest home loan lender by operating revenue HDFC jumped 5.73%.
Canara Bank spurted 5.05%, as net profit jumped 31.84% to Rs 529.43 crore in Q2 September 2008 over Q2 September 2007.
Most realty stocks fell even as cut in lending rates will spur demand for residential properties. From the 14 real estate stocks in BSE Realty index, four rose, while the rest declined. Unitech fell 5.66%. Indiabulls Real Estate rose 7.5%. India’s largest real estate player by market capitalization DLF declined 5.77% to Rs 274.50 off day’s high of Rs 305. DLF, Indiabulls Real Estate and Unitech have a weightage of 42.53% 22.09% and 11.03%, respectively, in the BSE Realty index.
Rate sensitive auto stocks were mixed even as lower rates may spur sales which are largely driven through finance. Mahindra & Mahindra, and Hero Honda Motor fell by between 0.7% to 3.36%. Tata Motors and Maruti Suzuki India rose by between 0.84% to 5.39%.
IT stocks gained on sharp spurt of American depository receipts (ADR) last week and on fall in rupee. India’s fourth largest IT exporter by sales Wipro rose 8.95% to Rs 280.65 off day’s high of Rs 289. Wipro ADR jumped 25% to end at $8.3 on Friday 17 October 2008 over the previous week's close of $6.63.
India’s third largest IT exporter by sales Satyam Computer Services rose 8.67% to Rs 289. Its ADR jumped 16% to end at $14.39 in the week ended 17 October 2008. The company raised its earnings guidance in rupee terms at the time of announcing Q2 September 2008 results on Friday, 17 October 2008.
India’s second largest IT exporter by sales Infosys rose 7.19% to Rs 1297.80. Infosys ADR gained 8% to end at $25.96 in the week ended 17 October 2008. India’s largest IT services provider by sales Tata Consultancy Services jumped 9.47%.
The rupee depreciated marginally 0.31% against the dollar to 48.83 as compared to that of the previous working day`s 48.68. A weak rupee results in higher revenues for IT companies as they earn most of their revenues in dollar terms
PSU OMC stocks rose despite rise in crude oil prices from the lower levels. BPCL, HPCL and Indian Oil Corporation rose between 0.4% to 1.7%. State-run oil marketing firms suffer revenue loss on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.
US crude rose $2 to $71.85 a barrel, on Friday, 17 October 2008 spurred by a broader rise across financial markets and expectations Organisation of Petroleum Exporting Countries (OPEC) could cut output at an emergency meeting next week.
Cement stocks fell on weak results reported by Ultra Tech Cement which lost 1.1%. The company's net profit fell 2.04% to Rs 368.15 crore in Q2 September 2008 over Q2 September 2007. India’s largest cement maker by sales ACC fell 6.13% to Rs 459.05, off the day’s high of Rs 513. Grasim Industries & Birla Corporation fell by between 1.85% to 7.96%.
Shree Renuka Sugars tumbled 7.76%, after the company acquired a majority stake in a sugar firm based in Karnataka.
Cadila Healthcare rose 0.67% on receiving US Food & Drug Administration approval for a new drug.
Apollo Hospitals Enterprise fell 2.04% following the decision to consider sub-division of equity shares.
Raymond rose 0.21% after a block deal was struck in the counter at Rs 109, at a premium of 13.95% over the previous day's closing price.
United Phosphorus slumped 7.47% on reports of plans to buy stake in an Israel agrochemicals based company for around $1.1 billion.
Godawari Power & Ispat fell 4% after the company decided to consider buyback of equity shares.
Moser Baer India surged 2,25%, on reports the company plans invest over $800 million in various businesses in the next 18 months.
Akruti City moved up 1.17%, as net profit spurted 195.34% to Rs 192.24 crore in Q2 September 2008 over Q2 September 2007.
Balaji Telefilms lost 11.15% after Hindi entertainment channel Star issued a notice for the termination of a long running television serial.
Petronet LNG rose 1.03% even as net profit fell 10.51% to Rs 103.36 crore on 0.6% decline in total income to Rs 1,672.69 crore in Q2 September 2008 over Q2 September 2007.
Indian Hotels Company fell 2.25% as net profit fell 4.84% to Rs 50.66 crore on 8.95% rise in total income to Rs 399.44 crore in Q2 September 2008 over Q2 September 2007.
Reliance Natural Resources clocked the highest volume of 1.17 crore shares on BSE. Reliance Petroleum (94.12 lakh shares), Chambal Fertilisers and Chemicals (82.39 lakh shares), Cals Refineries (63.36 lakh shares) and Housing Development & Infrastructure (61.01 lakh shares) were the other volume toppers in that order.
Reliance Capital clocked the highest turnover of Rs 290.34 crore on BSE. Reliance Industries (Rs 274.98 crore), State Bank of India (Rs 183.72 crore), Axis Bank (Rs 175.52 crore) and ICICI Bank (Rs 137.28 crore) were the other turnover toppers in that order.
European markets which opened after Indian market were firm. Key benchmark indices in UK, France and Germany were up by between 0.92% to 1.64%.
Asian markets which opened before Indian market, rallied, with valuations growing attractive, and after governments around the world rushed out further steps to to stabilize the financial markets and revive the banking industry, which has been badly damaged by a crisis of confidence. Key benchmark indices in South Korea, China, Taiwan, Hong Kong, Japan and Singapore were up by between 1.93% to 4.78%.
Oil prices rose. US crude rose $2 to $71.85 a barrel, on Friday, 17 October 2008 spurred by a broader rise across financial markets and expectations Organisation of Petroleum Exporting Countries (OPEC) could cut output at an emergency meeting next week.
Market seen range-bound on mixed global cues
Key benchmark indices are likely to remain range-bound on mixed global cues. Asian markets were trading mixed today, 20 October 2008 while US markets ended lower on Friday, 17 October 2008. Volatility may remain high ahead of the derivatives expiry for October 2008 series on Thursday, 23 October 2008.
Meanwhile, US crude rose $2 to $71.85 a barrel, on Friday, 17 October 2008 spurred by a broader rise across financial markets and expectations OPEC could cut output at an emergency meeting next week.
Asian markets were trading mixed today, 20 October 2008. China's Shanghai Composite slipped 0.73% or 14 points at 1,916.65, South Korea's Seoul Composite declined 0.92% or 10.91 points at 1,169.76, Taiwan's Taiwan Weighted fell 0.45% or 21.60 points at 4,817.04. However, Hong Kong's Hang Seng rose 1.90% or 277.01 points at 14,831.22, Japan's Nikkei advanced 0.53% or 45.88 points at 8,739.70 and Singapore's Straits Times gained 1.17% or 21.89 points at 1,900.40.
US stocks fell on Friday, 17 October 2008 on weakness in manufacturing and financial stocks after bleak data on consumer confidence and construction. The Dow Jones industrial average fell 127.04 points, or 1.41%, to 8,852.22, while the Standard & Poor's 500 Index dropped 5.88 points, or 0.62%, to 940.55. The Nasdaq Composite Index slipped 6.42 points, or 0.37%, to 1,711.29.
Back home, bears ruled the roost on the bourses on Friday, 17 October 2008 on global recession worries, with the BSE Sensex falling below the psychological 10,000 mark for the first time in more than two years. The BSE 30-share Sensex lost 606.14 points or 5.73% to 9,975.35 and the S&P CNX Nifty was down 194.95 points or 5.96% to 3,074.35, on that day.
Foreign institutional investors (FIIs) were net sellers worth Rs 915.54 crore while mutual funds bought shares worth Rs 712.77 crore on Friday, 17 October 2008, according to provisional data on NSE.
Pre Session Commentary - Oct 20 2008
Today Markets are likely to open positive today as enough carnage was seen on Friday when the Sensex breached the 10k support level. After some value buying we expect the markets to be trading volatile during the day. The support level of 10k is blown up and therefore sentiment of investors about the next support level is in dark. There is not much good or bad news in the macro economic environment, which could move the markets in the red or green. Therefore the movements of the markets now would totally depend on the sentiments prevailing amongst the investors. The government’s credit policy is yet to come by the end of this week and till then the markets would probably trade volatile.
On Friday, domestic Markets opened positive and remained volatile until after the post mid session when it started diving in the deep red territory. The volatility was extreme and the positive sentiments crumbled after the post mid session. The sentiments were very negative despite positive cues from the European markets which traded in green. The closing of the week brought cautiousness and hence traders booked their positions. Realty, Power and Metal stocks were brutally shattered which brought the Sensex down below 10000 mark. The sectors hit hard were Realty, Power, Metal, Teck and CG that recorded fall of 10.25%, 8.09%, 6.12%, 5.91% and 5.52% respectively. During the trading session we expect the market to be trading volatile.
The BSE Sensex closed lower by 606.14 points at 9,975.35 and NSE Nifty ended down by 194.95 points at 3,074.35. The BSE Mid Caps and Small Caps closed with loss of 112.29 points at 3,544.84 and by 118.50 points at 4,167.86. The BSE Sensex touched intraday high of 10,786.93 and intraday low of 9,911.32.
On Friday, US markets ended in the red territory with. The negative sentiments occurred due to the data released indicating weak U.S. housing. Housing starts in September fell 6.3% well below the expectations to an annualized rate of 817,000 units. This was considered to be the lowest level since January 1991. Further building permits dropped 8.3% to an annualized rate of 786,000. The weak housing sector is expected to weaken the GDP growth and may also spur write downs at financial firms. However on the other hand, the latest quarterly results of IT sector were much better than the expectations. Companies like Google, Advanced Micro Devices and Honeywell surprised the market with better than expected results. Warren Buffet also made a public statement that he has been picking up stocks to add on his portfolio as stocks look very attractive at the current rates. Crude oil futures for the month of November delivery rose by $1.34 a barrel by at $73.19 a barrel on New York Mercantile Exchange. This rise in crude oil price happened after OPEC confirmed about reducing the oil production to support the price level. OPEC produces nearly 40% of the world’s oil.
The Dow Jones Industrial Average (DJIA) closed lower by 127.04 points at 8,852.22. NASDAQ index also declined by 6.42 points at 1,711.29 and the S&P 500 (SPX) was low by 5.88 points to close at 940.55 points.
Indian ADRs ended mixed. In technology sector, Wipro gained by (7.95%) followed by Satyam that ended low by (1.06%) and Patni Computers was low by (2.78%). In banking sector ICICI Bank was high by (9.93%), while HDFC Bank fell (5.79%). In telecommunication sector, Tata Communication declined by (7.79%), while MTNL fell by (2.25%). Sterlite Industries was low by (6.99%).
Today the major stock markets in Asia opened mixed. The Shanghai Composite is trading low by 14.10 points, at 1,916.55. Hang Seng is high by 411.63 points at 14,936.33. Further Japan''s Nikkei is high by 129.27 points at 8,823.09. Straits Times is trading is also trading high by 33.96 points at 1,912.47 and South Korea’s Seoul Composite is high by 7.77 points at 1,188.52.
The FIIs on Friday stood as net sellers in equity and debt. Gross equity purchased stood at Rs2233.60 Crore and gross debt purchased stood at Rs179.70 Crore, while the gross equity sold stood at Rs4144.90 Crore and gross debt sold stood at Rs473.80 Crore. Therefore, the net investment of equity and debt reported were (Rs1911.30 Crore) and (Rs 294.00 Crore) respectively.
On Friday, the partially convertible rupee dropped to 48.88/89 per dollar, its lowest close since June 25, 2002 weaker than Thursday''s close of 48.82/83. The rupee fell to its lowest close in more than six years on Friday, on domestic market losses rising concern of capital outflows.
On BSE, total number of shares traded was 25.26 crores and total turnover stood at Rs 4,134.51 crores. On NSE, total volume of shares traded was 51.66 crores and total turnover was Rs 10,486.83 crores.
Top traded volumes on NSE Nifty – ICICI bank with total traded volume of 19613823 shares, followed by Suzlon with 14605181 shares, NTPC with 12227954 shares, Reliance Petro with 10959820 shares and Unitech with 10332369 shares respectively.
On NSE Future and Options, total numbers of contracts traded in index futures were 1194841 with a total turnover of Rs 18098.12 Crore. Along with this total number of contracts traded in stock futures were 1107650 with a total turnover of Rs13495.7 Crore. Total numbers of contracts for index options were 1332782 and total turnover was Rs23404.65 Crore and total numbers of contracts for stock options were 60627 and notional turnover was Rs 894.25 Crore.
Today, Nifty would have a support at 2,910 and resistance at 3,220 and BSE Sensex has support at 9,750 and resistance at 10,650.
Wall Street ekes out gains for the week
After a wild week, indices look forward for a steady direction
Extreme volatility was the main characteristic of Wall Street for the week that ended on Friday, 17 October, 2008. The week witnessed immense injection of liquidity in the credit market across the globe. In the US Market, the earning reports started pouring in. Options expired on Friday, which likely induced volatility and added volume. But nevertheless, the indices managed to finish the week with gains surprisingly following the week that had witnessed the worst weekly decline in Dow’s history.
Both the earnings results and economic data this week were fairly unimpressive. But signs of improvement in the credit market aided in the buying efforts. The Dow Jones Industrial Average gained 401 points for the week to end at 8,852. Tech - heavy Nasdaq gained 61 points at 1,711. S&P 500 gained 41 points to end at 940.
Morgan Stanley completed a deal during the week to receive a $9 billion capital injection from Japanese bank Mitsubishi UFJ. Other than that, the other central bank plans to provide as much dollar liquidity as needed for short-term funding markets, and news that several European countries were guaranteeing interbank lending helped market open on a strong note earlier during the week.
In addition to the above, speculation that the U.S. Treasury would be making a direct capital injection of as much as $250 billion in U.S. banks and that the FDIC would guarantee deposits in non-interest bearing deposit accounts also fueled the buying efforts.
But the market stumbled on Tuesday, 14 October, 2008 on some profit taking activity and lingering concerns about the economic outlook. The economic concerns dominated the market on Wednesday, 15 October, 2008.
The Commerce Department reported on Wednesday, 15 October, that U.S. retail sales fell 1.2% in September, 2008, the worst drop in three years and the third decline in a row. It just sent another signal that the US economy has sunk into a recession. The 1.2% decline came against a forecast figure of 0.8% decline.
But stocks extended their declines in the afternoon as Fed Chairman Bernanke spoke at the Economic Club of New York. In Bernanke's text, he said that during past economic crises the government took too long to act, but during the current turmoil the government acted swiftly, which will help to restore market functioning quicker. Despite the swift action, Bernanke noted that credit markets "will take some time to unfreeze" and the economic recovery "will not happen right away."
Financial and technology companies led the earning reports this week. Citigroup, JPMorgan Chase, Wells Fargo, Merrill Lynch, Johnson & Johnson, PepsiCo, Intel, IBM and Google led the headliners. Third quarter results themselves were largely mixed.
On Friday, 17 October, 2008, the Dow ended the day down by 127 points, to 8,852. The Nasdaq Composite Index, finished lower by 6 points at 1,711. S&P 500 finished lower by 6 points at 940. On that day, Honeywell announced earning report that beat expectations. Other that in that, in the tech front, both Google and IBM announced upbeat earnings per share results for the latest quarter.
The finance sector continued to be bogged down with news of losses from Citigroup and Merrill Lynch earlier Friday morning. The two companies continued to be hit by asset write-downs or other impairment charges.
There were a couple of economic reports that hit the wires on Friday. The Commerce Department had reported that construction of new homes fell to the second-lowest level in 50 years last month, as home builders sought to reduce the number of unsold inventories in an elusive quest to find the bottom of the historic housing collapse. Housing starts fell 6.3% in September to a seasonally adjusted annual rate of 817,000, the lowest since January 1991 and just 19,000 above the record low.
The report also stated that starts of single-family homes tumbled 12% to an annual rate of 544,000, the lowest since February 1982 and the fourth-lowest ever. Housing starts were also revised lower in July and August. Starts in August were revised to 872,000, down from 895,000. Building permits, which are less volatile than the starts data, fell 8.3% to 786,000 last month, a 27-year low. Permits for single-family houses dropped 3.8% to 532,000, the lowest in 26 years.
In a separate report, University of Michigan/Reuters index released on Friday, 17 October, 2008, showed that U.S. consumer sentiment plunged in October. The index fell to 57.5 in October, compared with a reading of 70.3 in late September. Market had been expecting an October result of 64.5.
Oil prices dropped below $70 per barrel at one juncture during the week. The drop in oil prices followed a weak industrial production report and reflected underlying concerns about the prospect of a global recession. At the close of the week, crude prices closed at $72. OPEC is slated to meet on 24 October to discuss oil prices. It is expected that the cartel, having seen prices plummet more than 50% from the all-time high reached in July, will announce a production cut.
Sideways movement may continue
The market is likely to witness sideways movement on the back of a strong intra-day volatile moves. Stocks across sectors along with heavyweights may gyrate sharply. Overnight weakness in the US indices and mixed Asian markets in mornings trades may further dampen the investors' sentiment. On the technical side, the Nifty has a stiff resistance at 3100 and the downside cap at 3050, while the Sensex could test higher levels of 10075 and has a likely support at 9875.
US indices ended flat on Friday, with the Dow Jones closing below at 8852, 127 points down. The Nasdaq lost 6 points at 1711.
Indian ADRs also had a weak outing on Friday. MTNL was the major loser amongst the ADRs and declined 7.79% followed by Patni Computer which tumbled 6.20%, while ICICI Bank, Dr Reddy, Tata Motors, HDFC Bank, Infosys, VSNL and Rediff shed around 1-5% each. However, Wipro gained 9.93% and Satyam closed with the 7.95% gain.
Crude oil prices in the US market raised on Friday, with the Nymex light crude oil for November delivery gained by $2 to close at $71.85 a barrel and in the commodity space, the Comex gold for December series lost $16.80 to settle at $787.70 a troy ounce.
Rolta India - BUY
We recommend a buy in Rolta India from a short-term perspective. It is apparent from the charts of Rolta India that after encountering significant resistance at around Rs 340 in early September, it began to decline and has been on a medium-term downtrend. This medium-term downtrend of the stock was very sharp, in short span of four weeks it recorded new 52-week low of Rs 134 on October 10.
However, the stock reversed direction by taking support from its significant long-term support level of Rs 140 and bounced up sharply. The daily relative strength index has recovered from the oversold area and the weekly RSI is also recovering from that area. In Bollinger bands, we notice that the stock price is trading closer to the lower band, indicating that it is oversold.
We take a contrarian view on the stock from a short-term perspective and anticipate its current up move to prolong until it hits our price target of Rs 190 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 160.
Trading Calls - Oct 20 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 20 2008
MRTPC orders probe in to Jet Airways-Kingfisher alliance.(BL)
Essar Oil to restart 70% of its fuel outlets by December.(FE)
Satyam Computers trims its hiring plans by a third.(BL)
Coal India says proposed private airport in West Bengal to block coal reserves of about 2.3bn tonnes.(FE)
Daiichi Sankyo acquires 20% of Ranbaxy Laboratories.(BS)
Essar and Gujarat State Petroleum Corp. win an oil and gas exploration block in Indonesia.(BL)
Hindustan Unilever raises prices by 5-10% on select items across soaps, detergents, shampoos and toothpastes.(TOI)
Ashapura Minechem forms a 50:50 JV with Adani group to set up an alumina refinery in Bhuj in Gujarat at an estimated cost of Rs35bn.(DNA)
Nalco to set up Rs100bn smelter project in Indonesia.(FE)
United Phosphorus eyes US$1bn buy in Israel.(BS)
Tata Sons in talks to buy stake in AIG’s Asian arm.(BL)
Parsvanath bags Rs295mn contract from Delhi Metro.(ET)
ONGC said it can fund the entire US$2.8bn for the acquisition of Imperial Energy, even if it was not able to raise the US$1bn bridge loan.(BS)
HCC has been awarded two contracts aggregating to Rs16.9bn from the Government of Andhra Pradesh.(FE)
Hindustan Zinc cuts zinc prices by 5.3%.(BL)
Punjab National Bank says eyeing a bank in Kazakhstan and also exploring options of a subsidiary in Canada.(DNA)
Ansal Housing & Construction to invest Rs1.4bn to develop residential project in Rajasthan.(BL)
NMDC to increase iron ore prices.(FE)
ADAG brings forward its plans to launch PE fund to January 2009 from March, but scales down the size from US$1bn to US$400-500mn.(BS)
Bharti Airtel could be one of the eight finalists in the race for a strategic 25% stake in the roughly US$1bn Omantel, Oman’s sole provider of fixed-line and Internet services.(FE)
Tatas to pick up undersubscribed portion of Tata Motors’ rights issue if the underwriter fails to do so.(ET)
RNRL asks Reliance Industries to pay it the difference between the price at which the latter would sell gas to other buyers and US$2.34 per MMBTU, the rate at which RNRL is seeking supply of gas.(BL)
An European telecom company to buy 43% stake in Unitech’s arm.(BS)
Tata Motors get rent relief for Pantnagar plant.(BS)
Four BHEL planned ventures may be hit due to current liquidity crunch.(Mint)
British Gas operated Panna-Mukta-Tapti JV plans a nine well in-fill drilling programme to enhance recovery from Panna-Mukta oilfield; project estimated to cost US$160mn.(BL)
Singapore fund pick up 8% stake in Mount Everest Mineral Water.(ET)
Reliance Power ties up US$2bn loan for Sasan power project.(ET)
ADAG eyes AIG’s Asian life insurance business.(ET)
Economic Front Page
Forex reserves drop by about US$10bn during the week ended Oct 10 to US$274bn.(BL)
Export curbs on rice, edible oils and cotton could be lifted in November.(FE)
Steel ministry is likely to consider scrapping the 15% export duty on steel, which includes long products, billets and slabs and pig iron.(DNA)
Cement production and dispatches grew 8% and 9% respectively in the month of September on a yoy basis.(ET)
Japan will provide India with US$4.5bn in loans to help build a freight railway between New Delhi and Mumbai, according to a newspaper report.(FE)
DoT is likely to impose higher one-time fee for operators seeking above 6.2MHz spectrum in metros and category A circles.(Mint)
Petroleum and Natural Gas Regulatory Board is working on a policy that will allow companies to use the unutilized capacity in the country's LNG terminals.(BS)
Maharashtra state government okays monorail projects worth Rs24.6bn.(ET)
Oil marketing companies give airlines new deadline to clear their fuel dues within 15 days.(Mint)
NHAI to invite bids for 23 projects worth about Rs300bn.(FE)
Railways may roll back freight hike on iron ore.(ET)
Uttar Pradesh government raises State Advised Price for sugarcane by Rs150/MT to Rs1,400/MT.(BL)
Global financial turmoil to affect FDI inflows according to Commerce and Industry minister.(Mint)
Steel companies may witness 10-40% hike in ore prices.(ET)
Government has allowed captive coal block exploration by private firms.(BS)
DoT admits issue of levying 1% usage charge for 3G services is yet to be finalized; 3G auction process likely to be delayed further.(Mint)
OPEC may decide to cut oil output next week.(BS)
Government may ease rules for more FDI inflow.(ET)
Still time to take a chance!
There is no security on this earth, there is only opportunity.
The crash may tempt those with cash to jump in right now. After all, how low can we go? Friday's big crash in our market, coming a week after a global rout, must have unnerved even the strongest of bulls. Especially, as many market players believed that world equity markets had placed a bottom on Oct. 10. However, the late afternoon meltdown on Friday proved the most optimistic of bulls wrong. The key indices fell to two year lows, with the BSE Sensex sliding below the 10,000 mark. It just goes to show that looking for a bottom in this kind of an environment is a futile exercise.
Though, the market looks highly oversold, and a bounce back is on the cards on "not-so-bad" global cues, one should wait for things to settle down. Staying on sidelines for a while won't do one any major harm. One must remain on guard even if there is a relatively strong rebound, as the bulls may not be out of the woods completely. The brave heart bulls can use these opportunities to pick up some crown jewels, but only for long-term purpose (at least two years). We would caution against any bottom fishing attempts for short-term gains.
We expect a firm opening, partly in reaction to the massive selloff on Friday and partly because of some semblance of stability in world markets. But, don't get too excited, as the bears may still stage a comeback having already thrashed the bulls over the past few weeks.
For India, the big concern remains the incessant selling by FIIs. The Government may try and perk up the inflows from other sources, like FDI and ECB. The RBI will hold its half-yearly review of the monetary policy on Friday. Hopes are that the central bank may ease the repo rate now, after having slashed the CRR substantially and giving leeway on the SLR front. But we think nothing really will happen to coincide with the review. The market will of course get some boost if Mint Street indeed announces a cut in short-term rates.
Expect some more market friendly action from other global central banks and policymakers as well. Meanwhile, India Inc will continue to rollout its report card, which is unlikely to be too pleasing given the slew of headwinds confronting them. One more factor that could have some bearing on the Indian markets over the next few weeks is politics, with several state polls lined up in November and December.
The global newsflow continues to be poor, what with Pakistan almost on the verge of a default and South Africa having to announce a bank bailout plan of its own. Last week's economic reports from the US and Europe too was not at all inspiring, underscoring a growing fear that a protracted and painful global recession is imminent. Dutch financial giant ING is set to receive $13.4 billion in new capital from the Netherlands government. China, which is so used to nothing up double-digit GDP growth, has seen its economic expansion slide to 9% in the July-September quarter.
FIIs were net sellers of Rs9.15bn (provisional) in the cash segment on Friday while the local institutions poured in Rs7.13bn. In the F&O segment, the foreign funds were net sellers at Rs1.69bn. On Thursday, FIIs were net sellers of Rs19.11bn in the cash segment, taking their total outflows this year to above $11.56bn.
Key Results Today: Akruti City, Alembic, Alfa Transformers, Archidply, Aztecsoft, Canara Bank, EMCO, Geometric, Granules India, Grindwell Norton, Hindustan Sanitary ware, HT Media, Idea, Indian Hotels, IL&FS Investment Managers, Ingersol Rand, JM Chemicals, Kale Consultants, KPIT Cummins, KRBL, Lumax Auto, Lumax Ind, Mic Electronics, Mindtree, MRO-TEK, Omnitech, Patel Engineering, Petronet LNG, Rolta, Sanghvi Movers, Shree Cement, Sterlite Technologies, Texmaco, Titan, United Phosphorus and Voltamp Transformers.
US stocks closed lower on Friday after another highly volatile day, as investors remained apprehensive about the future prospects of the world's leading economy amid a fresh set of disappointing data points.
Profit-taking set in ahead of the close, capping a day that sent the S&P 500 Index swinging between gains and losses at least 28 times, as worsening consumer confidence and housing data overshadowed Warren Buffett's advice to buy shares.
Treasury bond prices advanced, lowering the corresponding yields, and the dollar gained versus other major currencies. The credit market showed some signs of loosening, as several key lending rates declined.
The Dow Jones Industrial Average climbed more than 300 points before surrendering gains in the final hour of trading. The Dow retreated 127.04 points, or 1.4%, to 8,852.22 to cap its best week since 2003.
The S&P 500, which rose as much as 4%, ended down 5.88 points, or 0.6%, at 940.55, trimming its best weekly advance since February. The Nasdaq Composite Index slipped 0.4% to 1,711.29.
Market breadth was mixed. Four stocks fell for every three that gained on the New York Stock Exchange.
US stocks seesawed throughout Friday as a report showing housing starts at a 17-year low was countered by Internet giant Google's strong quarterly performance and bullish comments from Buffett.
Markets were also impacted by the monthly options expiration, which can cause increased volatility in the underlying equities.
Despite the extremely volatile week, US stocks managed to end with gains for the five-session period, which included the Dow's biggest one-day point gain ever on Monday and the second-biggest point loss ever on Wednesday.
For the week, the Dow and S&P 500 both added 4.7% and the Nasdaq gained 3.6%.
The advance last week added US$500bn in market value, according to gains in the Dow Jones Wilshire 5000, the broadest measure of the stock market. Overall, the tone of the market seemed to be better this week, compared to last week, with perhaps the exception of Wednesday's big slump.
Many Wall Street experts feel that Oct. 10 lows could potentially represent a bottom for the current bear market. During last week's topsy-turvy ride, the major indices did get close to those lows, but managed to bounce back.
Lending rates improved last week, as a slew of government initiatives around the globe started to bear some fruit. Treasury prices rose, lowering the yield on the 10-year note at 3.97%.
US light crude oil for November delivery rose US$2 to settle at US$71.85 a barrel on the New York Mercantile Exchange after ending the previous session at a 13-month low. Oil prices have slid since hitting an all-time high of US$147.27 a barrel on July 11.
Gasoline prices fell another 4.4 cents overnight, to a national average of US$3.04 a gallon. It was the 30th consecutive day that pump prices have decreased - in the past month alone, they are down more than 81 cents a gallon.
Over the weekend, the price of regular gasoline at US filling stations fell below $3 a gallon for the first time in eight months.
COMEX gold for December delivery slumped US$16.80 to settle at US$787.70 an ounce. A variety of other metals declined as well. In currency trading, the dollar rose against the euro and the yen.
European shares surged on Friday, bucking the generally weak trend across other global equity markets, with a regional stock benchmark logging its biggest weekly gain since March 2007.
The Dow Jones Stoxx 600 Index had its biggest two-day rally on record, before posting the steepest two-day slump since 1987 even as the cost of borrowing dollars in London fell on a weekly basis for the first time since July.
The pan-European Stoxx 600 index added 3.8% on Friday to 214.23, closing an eventful week on a positive note, as 15 of 19 industry groups increased. The index gained 4.5% last week, the first such advance since Sept. 12.
National stock benchmarks increased in 14 of the 18 western European markets. The UK's FTSE 100 index jumped 5.2% to 4,063.01, while Germany's DAX 30 index climbed 3.4% to 4,781.33 and the French CAC-40 index advanced 4.7% to 3,329.92.
Russian shares extended the recent sell-off on Friday, with the dollar-denominated RTS stock index dropping 6.5% on the day, after Goldman Sachs slashed its 2009 economic growth forecasts for the federation. The RTS index fell 46 points to end at 667.62 points.
Among the other emerging markets, the Bovespa in Brazil was nearly flat at 36,399 while the IPC dropped 0.7% to 20,312. The ISE National 30 index in Turkey plunged 7.5% to 32,334.
Bulls look for resurrection
Indian markets ended the week with a deeper cut with the BSE benchmark Sensex sliding below the 10,000 mark for the first time since July 2006. Likewise, the broader NSE Nifty index also declined below the 3,100 mark. Markets witnessed intensified selling after starting off the Friday’s session with a positive bias extending previous day’s pull back. However, intensified selling in the index pivotal like Reliance Industries, L&T, Infosys and SBI dragged the key indices lower.
Massive selling was witnessed on the FII front, on provisional basis FIIs sold nearly Rs1,000cr on Friday and during the week FIIs were net sellers to the tune of Rs5,000cr.On the other hand, DIIs turned out to be net buyers, and bought stocks worth Rs712cr on Friday (prov).
Finaly, the BSE benchmark Sensex plummeted 606 points or 5.7% to close 9,975 and the NSE Nifty index dropped 194 points to close at 3,074.
All the 30-components of Sensex were in the red, Reliance Industries, SBI, Bharti, Infosys and HDFC Bank were among the major laggards.
Among the BSE Sectoral indices, BSE Capital Goods index (down 12%), BSE Power index (down 8.5%), BSE Metal index (down 7%) and BSE Bankex index (down 6.3%). Even the Mid-Cap and the Small-Cap indices declined over 3% each.
HDFC announced that it posted a net profit after tax of Rs5342.3mn for the quarter ended September 30, 2008 as compared to Rs6463.9mn for the quarter ended September 30, 2007.
Total income has increased from Rs18925mn for the quarter ended September 30, 2007 to Rs26205.9mn for the quarter ended September 30, 2008.
HDFC was down by 1.3% at Rs1776 hitting an intra-day high of Rs1860 and a low of Rs1751 and recorded volumes of over 4,00,000 shares on BSE.
Shares of Mphasis erased early gains and lost ground by 2.5% to Rs173. The company announced that it posted a net profit after tax of Rs1127mn (up 128.7%) for the quarter ended September 30, 2008 as compared to Rs492.7mn for the quarter ended September 30, 2007.
Total Income increased from Rs4124.1mn for the quarter ended September 30, 2007 to Rs6539.3mn (up 58.7%) for the quarter ended September 30, 2008. The scrip touched an intra-day high of Rs193 and a low of Rs172 and recorded volumes of over 99,000 shares on BSE.
Satyam announced that it posted a profit after taxation of Rs5974.3mn (up 43.2%) for the quarter ended September 30, 2008 as compared to Rs4171.5mn for the quarter ended September 30, 2007.
Total Income increased by 3.5% from Rs20564.4mn for the quarter ended September 30, 2007 to Rs27839.8mn for the quarter ended September 30, 2008.
Shares of Satyam Computer ended lower by 2.6% to close at Rs265 hitting an intra-day high of Rs285 and a low of Rs263 and recorded volumes of over 13,00,000 shares on BSE.
Shares of HCC have gained by 1.3% to Rs48.3 after the company announced that it won two orders worth Rs16.9bn from the government of the Southern Indian state of Andhra Pradesh. The scrip has touched an intra-day high of Rs50.6 and a low of Rs47.7 and has recorded volumes of over 11,00,000 shares on NSE.
Shares of Elecon Engineering also erased early gains and slipped sharply by 6% to close at Rs47. The company announced that it secured order worth Rs177mn from Techpro Systems Ltd, Chennai Supply of an Unidirectional Stacker cum Reclaimer & Slewing Boom Stacker. The scrip touched an intra-day high of Rs55 and a low of Rs46 and recorded volumes of over 1,00,000 shares on BSE.
Market players would keep a close track on the further measures to be taken by the Indian central bank on October 24th. Traders and investors are hoping for an interest rate cut from the RBI which could be a positive trigger for the Indian markets. However, having said that staying cautious is what we would advice.
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