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Tuesday, October 21, 2008
Want more cuts - Parekh
The banking industry is hoping for more rate cuts by the Reserve Bank, which in turn, will help soften both deposit and lending rates, a top financial industry expert said.
"Yesterday, the RBI has cut repo rates and we hope some more reductions take place in rates," HDFC's Chairman, Deepak Parekh, said here today.
The Reserve Bank had cut its key short-term repo rate by 1 per cent yesterday to 8 per cent.
Asked whether interest rates could be expected to decline now, Parekh said that there was a likelihood of deposit rates getting reduced first followed by a softening in lending rates.
On the current liquidity situation in the system, Parekh said that "the current liquidity is enough."
Real estate prices should decline, Parekh said, when asked his outlook on the sector. "Sales are dull presently," he said.
Discounts given by developers have not been able to attract buyers, he said.
High interest rates (at 12 per cent) were not affordable for the common man, the HDFC chief said, adding that interest rates should be at around 8-9 per cent which would then be affordable for the common man.
HDFC, Satyam Computers, Indian Bank, Ultratech Cement, Mphasis BFL, Jubilant Organosys, Federal Bank, Biocon, India Infoline, Tata Steel, Dish TV
India Economy, Zensar Technologies, Geometric Software, HT Media, Indian Bank, Patel Engineering, Voltamp, Alembic, Petronet LNG
BSE Bulk Deals to Watch - Oct 21 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
21/10/2008 531223 ANJANI SYNTH SATYABHAMA CHAMPALAL AGARWAL B 95000 17.20
21/10/2008 531223 ANJANI SYNTH POOJA SUMIT AGARWAL B 95000 17.20
21/10/2008 531223 ANJANI SYNTH BLUEDERRY TRADIND COMPANY PVT LTD S 120000 17.20
21/10/2008 533016 AUSTRAL COKE AMBIT TIE UP PRIVATE LIMITED B 400000 75.55
21/10/2008 590059 BIHAR TUBES APL INFRASTRUCTURE PVT. LTD. B 359000 92.38
21/10/2008 590059 BIHAR TUBES MUKESH JAIN S 158500 92.35
21/10/2008 590059 BIHAR TUBES KINSFOLK INDUSTRIES PVT. LTD. S 160000 92.35
21/10/2008 532960 IB SECURITIE ORIENT GLOBAL CINNAMON CAPITAL LIMITED B 7871705 25.50
21/10/2008 532960 IB SECURITIE F N I L G D R CONVERSION S 7871705 25.49
21/10/2008 512185 IOL NET COM INDIA MAX INVESTMENT FUND LTD. B 345000 38.00
21/10/2008 512185 IOL NET COM KRISMA INVESTMENT PVT. LTD. S 336000 38.00
21/10/2008 502587 RAMA PUL PAP M/S SEWRI LAND COMPANY PVT LTD S 39000 6.92
21/10/2008 505854 TRF LIMITED DSP MERRILL LYNCH TRUSTEE CO PVT LTD AC DSP ML MICRO CAP FUND B 75000 385.00
NSE Bulk Deals to Watch - Oct 21 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
21-OCT-2008,AUSTRAL,Austral Coke & Projects L,AMBIT TIEUP PVT LTD,BUY,400000,75.85,-
21-OCT-2008,BANARISUG,Bannari Amman Sugars ,BLUE MOON SECURITIES PVT. LTD.,BUY,205000,475.22,-
21-OCT-2008,HDIL,Housing Development and I,ORIENT GLOBAL CINNAMON CAPITAL LIMITED,BUY,3246104,149.04,-
21-OCT-2008,IBREALEST,Indiabulls Real Estate Li,ORIENT GLOBAL CINNAMON CAPITAL LIMITED,BUY,4350000,125.59,-
21-OCT-2008,BANARISUG,Bannari Amman Sugars ,ADITYA INTERNATIONAL LTD,SELL,204110,475.01,-
Post Session Commentary - Oct 21 2008
Market continued its upward movement for the second straight day and ended with heavy gains on strong buying across the board. Investors hunted for bargains on favorable global cues and CRR cut by RBI along with Prime minister’s assurance that the Indian economy continued to be resilient. RBI cut its repo rate for the first time in 4.5 years on Monday by 100 basis points to 8.0% to soften the liquidity condition. Domestic markets opened on strong note tracking favorable cues from the markets across the world. Global markets lifted by the government’s efforts to push down short-term lending rates. Along with this Fed chairman Ben Bernanke indicated about another fiscal stimulus package and also expressed confidence in the government''s recent efforts to restore the financial system. Further market continued to recover from last week’s losses and extend its gains. Finally, market closed sharply higher on hopes that the global credit crisis would ease due to measures taken by policy makers across the world. BSE Sensex ended above 10,600 level along with NSE Nifty above 3,200 mark. On the sectoral front, all indices exhibited a good show and Consumer Durable and Reality stocks outperformed the benchmark index as they ended with gains of more than 8%. Apart from that, Capital Goods, Oil & Gas, Metal and IT stocks witnessed most of the buying from these baskets. Midcap and Smallcap stocks were also able to gain favor from the market.
Among the Sensex pack 28 stocks ended in positive terrain while 2 in red. The market breadth was positive as 1613 stocks closed in green while 975 stocks closed in red and 63 stocks remained unchanged.
The BSE Sensex closed higher by 460.30 points at 10,683.39 and NSE Nifty ended up by 112.1 points at 3,234.90. The BSE Mid Caps and Small Caps closed with gains of 80.89 points at 3,587.24 and by 83.46 points at 4,196.28. The BSE Sensex touched intraday high of 10,750.20 and intraday low of 10,250.23.
Gainers from the BSE Sensex pack are JP Associates (16.25%), TCS Ltd (12.86%), Reliance Communication Ltd (11.25%), Tata Steel (10.20%)), Satyam Computer (9.84%), Tata Power (9.60%),), Sterlite Industries (8.59%), L&T Ltd (6.13%), ACC Ltd (6.03 %), Reliance (5.73%), Wipro Ltd (5.61%) and HDFC (5.25%).
The BSE Capital Goods index closed higher by 392.92 points at 7,563.42. Gainers are Praj Industries (13.51%), Suzlon energy (8.73%), Siemens Ltd (8.33%), SKF India (7.49%), Crompton Greaves (6.69%) and Areva (6.14%).
The BSE Oil & Gas index gained 251.78 points to close at 6,774.28. Major gainers are Reliance Petroleum (5.92%), Reliance (5.73%), Cairn India (4.95 %), Aban Offshore (4.21%), Reliance Natural Resources (3.55%) and Essar Oil Ltd (2.73%).
The BSE Reality index ended up by 202.32 points at 2,632.93. Gainers are Indiabull Real (27.65%), Housing Development (19.14%), Mahindra Life (11.78%), Penland Ltd (9.20%), Orbit Co (6.78%) and Unitech Ltd (6.00%).
The BSE Metal index advanced by 214.40 points to close at 6,101.76. Major gainers are Tata Steel (10.20%), Sterlite Industries (8.59%), Sesa Goa Ltd (5.85%), Wespan Gujarat SR (5.07%), Hindustan Zinc (3.47%) and JSW Steel (2.17%).
The BSE Consumer Durable index surged 186.54 points to close at 2,271.82 as Titna Ind (17.39%), Videocon Ind (7.26%), Rajesh Export (6.52%), and Gitanjali GE (1.46%) ended in positive territory.
The IT index gained 165.37 points to close at 2,906.83 as TCS Ltd (12.86%), Tech Mahindra (11.51%), Oracle Fin (9.85%), Satyam Computer (9.84%), NIIT Ltd (8.42%) and HCL Tech (8.10%) in positive territory.
SBI October 2008 futures at slight premium
Turnover decreases
Nifty October 2008 futures were at 3245, at a premium of 10.10 points as compared to spot closing of 3234.90. NSE's futures & options (F&O) segment turnover was Rs 49,845.05 crore, which was lower than Rs 51,272.30 crore on Monday, 20 October 2008.
State Bank of India (SBI) October 2008 futures were at premium at 1488.90 compared to the spot closing of 1487.60.
Reliance Petroleum October 2008 futures were near spot price at 106.65 compared to the spot closing of 106.55.
Infosys Technologies October 2008 futures were at discount at 1344.10 compared to the spot closing of 1347.60.
In the cash market, the S&P CNX Nifty gained 112.10 points or 3.59% at 3234.90.
Asian Markets Consolidate Gains
Strong Gains in Resource Sector And Overnight Rebound on Wall Street Supports Momentum
The stock markets across the Asian region consolidated their gains closing on higher side for the second consecutive day by taking a cue from overnight rebound in Wall Street on the back of strong gains in the resources sector and comments from Federal Reserve Chairman Ben Bernanke and the White House in support of a second economic stimulus package. The Dow Jones Industrial Average ended the day up by 413 points, to 9,265. The Nasdaq Composite Index finished higher by 58 points at 1,770. S&P 500 finished higher by 44 points at 985.
In commodity market, crude oil prices eased in late Asian deals despite hopes of a production cut by OPEC this week - the first time in almost two years and the U.S. government is considering further action to boost the economy.
At 8:58 GMT, oil was quoted at $73.50 a barrel, down $0.75 after York's main contract, light sweet crude for delivery in November, rose by $2.40 to close at $74.25 dollars a barrel on yesterday.
In currency trading, the U.S. dollar weakened to the lower 101-yen levels in late Tokyo deals from the lower 102-yen range in early trade and late Monday.
The Australian dollar responded positively to the strength in global shares, rising above US$0.70 in the morning session, but lost ground after the minutes of the Reserve Bank of Australia's board meeting earlier this month suggested that further interest rate cuts were possible in coming months. In late local trade, the Aussie was buying US$0.6953, down from Monday's close of US$0.6993-0.6996.
The New Zealand dollar gained as appetite for riskier assets such as high-yielding currencies improved amid firmer global equity markets. The CPI data released today had only a minimal effect on the kiwi, as the market anticipates a 100 basis point interest rate cut by the Reserve Bank of New Zealand on Thursday. The kiwi finished the domestic session at US$0.6172-0.6177 compared to US$0.6119-0.6122 in late local trade on Monday.
The South Korean won fell against the greenback, as dollar demand by importers and foreign stock investors remained strong. The won finished the local session at 1,320.1 a dollar, down from yesterday's close of 1,315.0 won.
The Taiwan dollar closed the morning at NT$32.647 to the US dollar, compared with the previous close of NT$32.580.
Coming back in equities, Japan's Nikkei index rose more than 3% and Australia's All Ordinaries jumped nearly 4%, while Hong Kong's Hang Seng declined 1.8%, South Korea's KOSPI lost 1% and China's Shanghai Composite index dropped 0.8%.
The Japanese stock market closed sharply higher, extending its gains for a third consecutive session. The benchmark Nikkei 225 Index closed up 300.66 points or 3.34% at 9,306.25 after posting a gain of 3.6% on yesterday. The broader Topix Index of all First Section Issues gained 29.27 points or 3.16 to 956.64.
The Chinese stock market closed lower on profit taking after two sessions of gains. Financials and property stocks led the losers. Investors also exercised caution on concerns about the economy after China's growth slowed to 9% in the third quarter. However, agricultural stocks gained after the National Development and Reform Commission or NDRC said that the government will sharply raise investment in agriculture and accelerate the building of related infrastructure. The benchmark Shanghai Composite Index closed down 15.48 points or 0.78% at 1,958.53.
In Hong Kong, the Hang Seng Index struggled to stay in the positive territory after opening higher. The benchmark index closed down by 1.84% at 15,041.17, while the Hang Seng China Enterprises Index went down by 2.34% to 7,267.12.
The Australian stock market closed sharply higher for the second straight trading session on Tuesday. The market started off firm, extended its gains amid signs that the global credit crunch might be easing. The benchmark S&P/ASX 200 index closed up 160.2 points or 3.9% at 4,302.5, extending yesterday's 4.3% gains. The broader All Ordinaries index gained 152.7 points or 3.73% to close at 4,251.4.
On the economic front the according to the minutes of October 7 monetary policy meeting, the central bank's board noted that it saw increased risks to the nation's economy and hints that inflation would not get out of hand as it decided this month to reduce interest rates by a full percentage point. The board also said that while upcoming inflation figures would likely show an increase to around 5% for the year, the current staff forecast was for inflation to start to decline in 2009, and that weaker demand will probably mean inflation will fall faster than previously expected.
In other economic news, a report from the Australian Bureau of Statistics showed that new motor vehicle sales for September declined 0.4% from last month and 8.2% on year.
The New Zealand stock market closed sharply higher, extending its gains for the third consecutive trading session. The benchmark NZX 50 index closed up 62.10 points or 2.15% at 2952.20 after rallying nearly 3% on Monday. The broader NZX All Capital index advanced 53.53 points or 1.82% to finish at 2,993.66.
On the economic front, Inflationary pressures continued to scale new highs in New Zealand as the consumer price index soared at fastest pace in 18 years on soaring petrol prices. According to data released by the Statistics New Zealand, the consumer price index (CPI) increased 5.1% in the third quarter ended September 2008 over the corresponding period in the previous year. The annual rate has been the highest since the second quarter of 1990 quarter. Over the second quarter, the consumer price index rose 1.5%.
Meanwhile, Statistics New Zealand said that food prices rose 0.6% in September, driven mainly by a 3.7% jump in the prices of meat, poultry and fish.
The South Korean stock market closed lower, reversing early gains, as investors turned doubtful about the effectiveness of the government's financial stabilization package. The market started off stronger, mirroring a pickup in U.S. markets, but lost ground over the course of the trading session, dipping as much as 2.1% at one point. The benchmark Korea Composite Stock Price Index or KOSPI eventually closed down 11.53 points or 0.95% at 1,196.1 after opening nearly 2% higher.
On Sunday, the government unveiled sweeping measures aimed at providing three-year state guarantees for banks' foreign debts worth up to US$100 billion and injecting $30 billion into dollar-starved banks and companies.
In Malaysia, the shares advanced after the country's finance minister, Najib Razak, announced measures to attract foreign investment, and support the stock market. The KLSE Composite index rose 0.8% to 916.78.
In Philippines, the stock market advanced 2.61%, recording its first gain in five days as global investors praised the U.S. Federal Reserve's plan for a second stimulus package to aid the U.S. economy. The benchmark index PSEi scaled up 2.61% or 53.86 points to 2,116.74, after falling 1.7 % yesterday.
In India, the key benchmark indices surged in mid-afternoon trade to hit fresh intraday highs. However the market soon came off from the day’s high. At 15.46 IST the BSE Sensex was up 460.30 points or 4.50%. The S&P Nifty was up 3.91% trading at 3244.80.
On the economic front, the monetary board of Philippines approved on 17 October the opening of a US dollar repurchase agreement (repo) facility to support the orderly functioning of the financial system as an effective channel of monetary policy. The US dollar repo facility is expected to augment dollar liquidity in the market to help address any temporary market tightness at this time. In turn, this will help ensure the ready availability of credit for imports and other qualified funding requirements. For this facility, the Monetary Board approved the use of foreign-denominated sovereign debt securities (ROP) as collateral for loans availed.
Elsewhere, Thai Set increased by 0.56% or 2.69 points to close at 479.64 while Indonesia’s Jakarta Composite closed the day with a gain of 13.21 points or 0.93% closing at 1440.15. Singapore’s Strait Times was trading lower at 1,920.79 – down by 0.95%.
In other regional markets, European shares moved higher, with industrials advancing and French banks performing well amid moves by the French government to shore up the sector.
The German DAX 30 index rose 0.7% to 4,868.54, while the U.K. FTSE 100 index declined 0.1% to 4,279.92 as several U.K. lenders weakened, with HSBC Holdings down 4.3% and Royal Bank of Scotland down 5.3%. The French CAC-40 index climbed 2.1% to 3,519.56, outperforming other national indexes.
Sensex vaults 4.5% as Sebi warns FIIs against lending of shares overseas
The central bank's rate cut, higher global markets and short covering on the stock market regulator Securities & Exchange Board of India (Sebi)’s warning to foreign funds against overseas lending and borrowing of Indian securities, boosted the domestic bourses today. But intraday volatility was high. The BSE Sensex rose 460.30 points or 4.5%, extending Monday’s (20 October 2008) 2.48% gain.
Index heavyweight Reliance Industries spurted. Tata Consultancy Services rose more than 12.5%. Jaiprakash Associates spurted more than 16% on good Q2 September 2008 results. Tata Consultancy Services rose more than 13%, Tata Steel rose more than 10% and Reliance Communications rose more than 11%. The market breadth was strong.
European markets and some Asian markets rose as France said it will invest $14 billion in banks and the US moved toward a second stimulus package.
Sebi has disapproved of the overseas lending and borrowing activity of FIIs and the consequent selling pressure in the cash market in India. The Sebi warning to FIIs against overseas lending and borrowing came after the data showed FIIs had lent equities worth Rs 348 crore to overseas entities for the purpose of short selling, during 10 October-14 October 2008.
Fall in interest rate boosts stocks as it results in lower borrowing costs for corporates. The Reserve Bank of India (RBI), on Monday, 20 October 2008, cut the repo rate, by 100 basis points to 8%, with immediate effect. The 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.
The BSE 30-share Sensex rose 460.30 points or 4.5% to 10,683.39. The index surged 527.11 points at the day's high of 10,750.20 in mid-afternoon trade. The Sensex rose 27.14 points at day’s low of 10,250.23 in early trade.
The S&P CNX Nifty was up 112.10 points or 3.59% to 3,234.90.
The Sensex has risen 708.04 points or 7.09% in two trading sessions from its close of 9,975.35 on 17 October 2008. But the barometer index is down 9,603.06 points or 47.33% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 10,523.38 points or 49.62% below its all-time high of 21,206.77 struck on 10 January 2008.
BSE clocked turnover of Rs 3857 crore today as compared to a turnover of Rs 3.697.57 crore on 20 October 2008.
Nifty October 2008 futures were at 3245, at a premium of 10.10 points as compared to spot closing of 3234.90. NSE's futures & options (F&O) segment turnover was Rs 49,845.05 crore, which was lower than Rs 51,272.30 crore on Monday, 20 October 2008.
The BSE Mid-Cap index was up 2.31% at 3587.24 and The BSE Small-Cap index was up 2.03% at 4,196.28. Both the indices underperformed the Sensex.
BSE Consumer Durables index (up 8.95% to 2,271.82), BSE Realty index (up 8.32% to 2,632.93), BSE IT index (up 6.03% to 2,906.83), BSE Capital Goods index (up 5.48% to 7,563.42), BSE Teck index (up 4.66% to 2,282.64) outperformed the Sensex.
BSE PSU index (up 1.04% to 5,268.67), BSE HealthCare index (up 1.33 % to 3,302.82), BSE Auto index (up 1.65% to 3,123.27), BSE Bankex (up 2.57% to 5,842.23), BSE FMCG index (up 3.15% to 1,957.36), BSE Metal index (up 3.64% to 6,101.76), BSE Oil & Gas index (up 3.86% to 6,774.28), BSE Power index (up 4.36% to 1,751.40), underperformed the Sensex.
The market breadth was strong. On the BSE, 1,613 shares advanced as compared to 975 that declined. 63 shares remained unchanged.
India’s largest private sector company by market capitalization and oil refiner Reliance Industries rose 5.73% to Rs 1,397, rose ahead of Q2 results. The stock came off the session's high of Rs 1,424.60. The company is scheduled to announce its Q2 September 2008 result on 23 October 2008.
Tata Steel (up 10.2% to Rs 278.30), Reliance Communications (up 11.25% to Rs 258.20), Tata Power Company (up 9.6% to Rs 789.55), Sterlite Industries (up 8.59% to Rs 294.70) were the major gainers from the Sensex pack.
Mahindra & Mahindra (down 2.1% to Rs 408.50) and Hindalco Industries (down 1.68% to Rs 64.35) were the major losers from the Sensex pack.
IT stocks gained on overnight spurt in American depository receipts (ADRs) and amid steady rupee. The BSE IT index rose 6.03% and was the third biggest gainer from the sectoal indices on BSE.
India's third largest IT exporter by sales Satyam Computer Services rose 9.84%. Its ADR jumped 6.46%. 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 3.9%. Infosys ADR gained 7.94%. India's largest IT services provider by sales Tata Consultancy Services jumped 12.86%. India's fourth largest IT exporter by sales Wipro rose 5.61%. Wipro ADR rose 0.84%.
NIIT Technologies gained 8.42%, as net profit rose 20.10% to Rs 29.35 crore in Q2 September 2008 over Q1 June 2008.
Zigma Software fell 2.44% on board meet on 27 October 2008, to consider issue of bonus shares.
PSI Data Systems hit 20% upper circuit on board approving a proposal received from promoter group to acquire the public shareholding of the company from the market through open offer, and to delist equity shares of the company from the Bombay Stock Exchange.
The Indian rupee was little changed in thin trade on Tuesday as a strike by central bank employees affected dealing.The partially convertible rupee was at 48.9550/9700 per dollar, compared to its previous close of 48.97/98 on Monday. A weak rupee results in higher revenues for IT companies as they earn most of their revenues in dollar terms.
Banking majors extended yesterday’s (20 October 2008) gains on hopes lower rates will boost lending. ICICI Bank, HDFC Bank and State Bank of India rose between 0.31% to 4.86%.
The BSE's banking sector index Bankex rose 2.57%. ICICI Bank, State Bank of India and HDFC Bank have a weightage of 24.21%, 22.44% and 20.55%, respectively, in the Bankex.
India’s largest home loan lender by operating income HDFC rose 5.25%. LIC Housing Finance surged 7.83% as net profit rose 16.05% to Rs 135.06 crore on 34.86% rise in total income to Rs 707.72 crore in Q2 September 2008 over Q2 September 2007.
Indiabulls Financial Services spurted 8.74% on reports of good loan recovery in Q2 September 2008.
The BSE Consumer Durables index rose 8.95% and was the biggest gainer from the sectoral indices on BSE. All the stocks rose from the BSE Consumer Durables index on hopes lower interest rates will spur demand. Gitanjali Gems, Rajesh Exports, Videocon Industries rose by between 1.46% to 7.26%.
Titan Industries surged 17.39% as net profit surged 88.21% rise in net profit to Rs 87.14 crore on 53.04% rise in sales to Rs 1088.76 crore in Q2 September 2008 over Q2 September 2007.
Most realty stocks rose today after yesterday’s slide as cut in lending rates will spur demand for residential properties. THE BSE Realty index rose 8.32% and was the second major gainer from the sectoral indices on BSE. Out of 14 real estate stocks from BSE Realty index, 11 stocks rose rest declined. Realty majors, DLF, Indiabulls Real Estate Unitech rose by between between to 5.01% to 27.65%.
DLF, India bulls Real Estate, Unitech have a weightage of 42.53% 22.09% and 11.03% respectively in the BSE Realty index.
Peninsula Land rose 9.2% on reports of exploring the option of hiving off land assets to mitigate risks and address the ongoing financial turmoil.
PSU OMC stocks fell despite crude oil falling for the first time since last three days. BPCL, HPCL and Indian Oil Corporation were down by between 0.96% to 6.45%. State-run oil marketing firms suffer revenue loss on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.
Crude oil for November 2008 delivery fell as much as $1.13, or 1.5 %, to $73.12 a barrel on the New York Mercantile Exchange today.
Shipping companies rose even as the Baltic Dry index, a measure of shipping costs for commodities, fell for 10th consecutive trading session in London on Monday, 20 October 2008. Great Eastern Shipping Company, Mercator Lines and Shipping Corporation of India rose by between 3.52% to 7.03%.
India’s largest commercial vehicle maker by sales Tata Motors rose 1.58% despite reports of rights issue getting a poor response.
India’s largest motorbike maker by sales Hero Honda Motors rose 2.66% as net profit jumped 49.9% to Rs 306.30 crore on 36.15% rise in total income to Rs 3255.93 crore in Q2 September 2008 over Q2 September 2007.
Jaiprakash Associates surged 16.25% as net profit jumped 96% to Rs 203.13 crore on 39.51% rise in total income to Rs 1286.63 crore in Q2September 2008 over Q2 September 2007.
India's largest electric equipment maker by sales Bharat Heavy Electricals rose 4.37% on bagging a Rs 641-crore contract for setting up a 412 megawatt hydro-electric project in Himachal Pradesh.
India’s second largest steel maker by sales Steel Authority of India fell 2.5% despite 18.19% rise in net profit to Rs 2009.60 crore on 33.7% rise in total income to Rs 12660.99 crore in Q2 September 2008 over Q2 September 2007.
Hindustan Zinc surged 3.47% even as net profit fell 17.88% to Rs 959.51 crore on 9.28% rise in total income to Rs 1971.18 crore in Q2 September 2008 over Q2 September 2007.
Crompton Greaves surged 6.69% as net profit rose 24.73% to Rs 92.54 crore on 18.72% rise in total income to Rs 1096.44 crore in Q2 September 2008 over Q2 September 2007.
United Spirits gained 3.92% as net profit rose 17.06% to Rs 93.89 crore in Q2 September 2008 over Q2 September 2007.
Marico spurted 7.32% as net profit rose 18.42% to Rs 45.12 crore in Q2 September 2008 over Q2 September 2007.
Sadbhav Engineering declined 1.17% despite bagging an order worth Rs 268.34 crore.
EID Parry India moved up 11.4% on proposal to consider buy back of own shares.
ECE Industries soared 8.97% on proposal to raise funds by way of a rights issue.
Idea Cellular tumbled 12.54% as net profit fell 31.80% to Rs 150.39 in Q2 September 2008 over Q2 September 2007.
Sun TV Network surged 4.02% on proposal to consider buyback of own shares.
GVK Power & Infrastructure clocked the highest volume of 1.68 crore shares on BSE. Housing Development & Infrastructure (1.09 crore shares), Reliance Petroleum (92.86 lakh shares), Indiabulls Securities (87.84 lakh shares) and Reliance Natural Resources (87.61 lakh shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 301.65 crore on BSE. Reliance Capital (Rs 225.49 crore), ICICI Bank (Rs 172.23 crore), State Bank of India (Rs 162.58 crore) and Housing Development & Infrastructure (Rs 159.64 crore) were the other turnover toppers in that order.
In Europe, key benchmark indices in France, UK were up by between 0.18% to 1.57%. While, key benchmark index in Germany fell 0.37%.
Asian stocks were mixed today, 21 October 2008. Key benchmark indices in China, Japan, Taiwan and were up by between 0.22% to 3.34%. Key benchmark indices in Singapore, South Korea, and Hong Kong fell by between 0.1% to 0.95%.
US stocks rallied on Monday after the Federal Reserve's chairman backed more government spending to help the economy and credit market conditions showed further signs of improvement.
Market jumps
The key benchmark indices spurted in mid-morning trade to hit new intraday high after a bout of volatility in early trade. The BSE Sensex was up 324.37 points or 3.17%. The central bank's rate cut, higher Asian markets and short covering on the stock market regulator Securities & Exchange Board of India (Sebi)’s warning to foreign funds against overseas lending and borrowing of Indian securities, boosted the domestic bourses.
IT stocks jumped on weak rupee. Rate sensitive banking and realty stocks rose. Index heavyweight Reliance Industries spurted. Jaiprakash Associates rose more than 10%. The market breadth was strong.
Sebi has disapproved of the overseas lending and borrowing activity of FIIs and the consequent selling pressure in the cash market in India. The Sebi warning to FIIs against overseas lending and borrowing came after the data showed FIIs had lent equities worth Rs 348 crore to overseas entities for the purpose of short selling, during 10 October-14 October 2008.
Fall in interest rate boosts stocks as it results in lower borrowing costs for corporates. The Reserve Bank of India (RBI), on Monday, 20 October 2008, cut the repo rate, by 100 basis points to 8%, with immediate effect. The 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.
At 11:21 IST, the BSE 30-share Sensex was up 324.37 points or 3.17% to 10,547.46. The index surged 340.28 points at the day's high of 10,563.37 in mid-morning trade. The Sensex rose 27.14 points at day’s low of 10,250.23 in early trade.
The S&P CNX Nifty was up 86 points or 2.75% to 3,208.80.
The BSE Mid-Cap index was up 1.8% at 3,569.57 and The BSE Small-Cap index was up 1.74% at 4,184.37. Both the indices underperformed the Sensex.
The market breadth was strong. On BSE, 1,324 shares advanced as compared to 682 that declined. 55 shares remained unchanged.
India’s largest private sector company by market capitalization and oil refiner Reliance Industries rose 4.58% to Rs 1,381.05.
Jaiprakash Associates (up 10.49% to Rs 74.80), Stelite Industries (up 7.44% to Rs 291.60), Reliance Communications (up 7.04% to Rs 248.45), Reliance Infrastrucutre (up 7.03% to Rs 515.50) were the major gainers from the Sensex pack.
Mahindra & Mahindra (down 4.76% to Rs 397.40), Grasim Industries (down 0.48% to Rs 1,184.80) and Bharti Airtel (down 0.84% to Rs 702) ITC (down 0.48% to Rs 164.20) were the major losers from the Sensex pack.
IT stocks gained on fall in rupee and overnight spurt in American depository receipts (ADRs). BSE IT index rose 4.13% and was the third biggest gainer form the sectoal indices on BSE. p> India's third largest IT exporter by sales Satyam Computer Services rose 5.43. Its ADR jumped 6.46%. 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 4.95. Infosys ADR gained 7.94%. India's largest IT services provider by sales Tata Consultancy Services jumped 7.21%. India's fourth largest IT exporter by sales Wipro rose 5.11%. Wipro ADR rose 0.84%
Rupee eased to 48.98 against dollar on Monday compared with 48.85 per on Friday. A weak rupee results in higher revenues for IT companies as they earn most of their revenues in dollar terms.
Banking majors extended yesterday’s (20 October 2008) gains on hopes lower rates will boost lending. HDFC Bank, ICICI Bank and State Bank of India rose between 1.955% to 4.38%.
The BSE's banking sector index Bankex rose 2.59%. ICICI Bank, State Bank of India and HDFC Bank have a weightage of 24.21%, 22.44% and 20.55%, respectively, in the Bankex.
India’s largest home loan lender by operating income HDFC rose 2.75%.
Most realty stocks rose today after yesterday’s slide as cut in lending rates will spur demand for residential properties. The BSE Realty index rose 4.8% and was the major gainer from the sectoral indices on BSE. Out of 14 real estate stocks from BSE Realty index, 12 stocks rose rest declined. Realty majors, Indiabulls Real Estate, DLF, Unitech rose by between between to 3.93% to 12.49%.
DLF, India bulls Real Estate, Unitech have a weightage of 42.53% 22.09% and 11.03%, respectively, in the BSE Realty index.
PSU OMC stocks fell after crude oil rose for a third day on signs that the Organization of Petroleum Exporting Countries will reduce production to halt a 50% drop in prices since July 2008. BPCL, HPCL and Indian Oil Corporation were down by between 0.77% to 2.65%.
State-run oil marketing firms suffer revenue loss on domestic sale of petrol, diesel, LPG and kerosene at a controlled price. Crude oil for November 2008 delivery rose $1.44, or 1.9 % to $75.69 a barrel today.
India’s largest commercial vehicle maker by sales Tata Motors rose 2.11% despite reports of rights issue getting a poor response.
EID Parry India rose 5.54% on board meeting on 29 October 2008, to consider a proposal for buy back of equity shares.
Punj Lloyd surged 3.14% on overseas unit bagging an order worth $22.48 million.
Sun TV Network surged 5.79%, on board meeting on 30 October 2008 to consider buy back of equity shares
ECE Industries surged 11.83% on board meeting on 31 October 2008 to consider rights issue.
Most of the Asian stocks were higher today, 21 October 2008, triggered by overnight surge in US stocks. Key benchmark indices in South Korea, China, Japan, Taiwan and Singapore were up by between 0.22% to 2.45%. Key benchmark indices in Hong Kong fell by 0.69%.
US stocks rallied on Monday after the Federal Reserve's chairman backed more government spending to help the economy and credit market conditions showed further signs of improvement.
The BSE Sensex rose 2.48% on Monday boosted by the repo rate cut by the Reserve Bank of India during trading hours.
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