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Wednesday, October 29, 2008
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BSE Bulk Deals to Watch - Oct 29 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
29/10/2008 531683 ANKU DR PH GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD S 150843 128.00
29/10/2008 532946 BANG MARUTI SECURITIES LTD B 75175 234.93
29/10/2008 590061 BRUSHMAN IND PRACHI AGENCIES PVT LTD B 700000 52.02
29/10/2008 590061 BRUSHMAN IND NENDEJ TIEUP PRIVATE LIMITED S 350000 52.04
29/10/2008 590061 BRUSHMAN IND ARISTRO FINANCIAL SERVICES LTD S 350000 52.00
29/10/2008 514418 DUJODWA PROD CATCH PENNY POTFOLIO LTD S 48555 4.41
29/10/2008 532347 HELIOS MAT I PASSIONATE INVESTMENT MANAGEMENT PRIVATE LIMITED B 154000 27.75
29/10/2008 532347 HELIOS MAT I BSEINTERNALSHORTAGE S 154000 27.75
29/10/2008 512047 NATRAJ FIN DASH PHARMACEUTICALS PVT LTD B 26531 29.68
29/10/2008 512047 NATRAJ FIN PARI STOCK TRADING PVT LTD S 23622 28.46
29/10/2008 530461 SABOO SOD CH CHIRAGPURI KAILASHPURI GOSWAMI B 55000 9.10
29/10/2008 532710 SADBHAV ENGG ABN AMRO BANK NV LONDON BRANCH B 192070 465.00
29/10/2008 532710 SADBHAV ENGG BSMA LIMITED S 190000 465.00
29/10/2008 532543 SAHPETROLEUM GLOBE CAPITAL MARKET LIMITED B 340468 30.58
29/10/2008 532543 SAHPETROLEUM LRS PORTFOLIO AND ADVISORY SERV. P LTD B 900000 30.58
29/10/2008 526885 SARLA PER F PASSIONATE INVESTMENT MANAGEMENT PRIVATE LIMITED B 77730 57.50
29/10/2008 526885 SARLA PER F BSEINTERNALSHORTAGE S 77730 57.50
29/10/2008 512217 WOOLITE MERC UMESH PURUSHOTTAM CHAMDIA B 691334 7.34
29/10/2008 512217 WOOLITE MERC SANJAY RASIKLAL SHAH S 80550 7.60
29/10/2008 512217 WOOLITE MERC SRIDHAR BHUPATIRAJU S 608530 7.30
NSE Bulk Deals to Watch - Oct 29 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
29-OCT-2008,COREPROTEC,Core Projects and Technol,SHARAD SHAH,BUY,727526,44.81,-
29-OCT-2008,EDUCOMP,Educomp Solutions Limited,OPPENHEIMER QUEST INTN VALUE FUND I,BUY,184000,2157.63,-
29-OCT-2008,GTL,GTL Limited,J P M S L A/c Copthall Mauritius Investment Ltd,BUY,80000,187.99,-
29-OCT-2008,HDIL,Housing Development and I,ORIENT GLOBAL CINNAMON CAPITAL LIMITED,BUY,2400000,143.92,-
29-OCT-2008,NAUKRI,Info Edge (India) Limited,KRUTO FUND LP,BUY,266300,429.99,-
29-OCT-2008,SAHPETRO,Sah Petroleums Limited,SETU SECURITIES LTD,BUY,50035,30.50,-
29-OCT-2008,SAHPETRO,Sah Petroleums Limited,YUVAK SHARE TRADING PVT LTD,BUY,211304,30.35,-
29-OCT-2008,APTECHT,Aptech Limited,CREDIT SUISSE FIRST BOSTON (SINGAPORE) LTD,SELL,391837,76.03,-
29-OCT-2008,BAJAJHIND,Bajaj Hindusthan Ltd,CITIGROUP GLOBAL MARKET MAURITIUS PVT.LTD.,SELL,1371800,43.10,-
29-OCT-2008,BALRAMCHIN,Balrampur Chini Mills,CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD,SELL,1569600,36.97,-
29-OCT-2008,BALRAMCHIN,Balrampur Chini Mills,CREDIT SUISSE FIRST BOSTON (SINGAPORE) LTD,SELL,1334400,36.91,-
29-OCT-2008,COREPROTEC,Core Projects and Technol,CREDIT SUISSE FIRST BOSTON (SINGAPORE) LIMITED,SELL,686250,44.95,-
29-OCT-2008,DCB,Development Credit Bank L,CITIGROUP GLOBAL MARKETS MAURITIUS PVT. LTD.,SELL,901600,23.70,-
29-OCT-2008,GTL,GTL Limited,J P M S L A/c Copthall Mauritius Investment Ltd,SELL,623250,185.75,-
29-OCT-2008,GUJALKALI,Gujarat Alkalies & Chem ,CREDIT SUISSE FIRST BOSTON (SINGAPORE) LTD,SELL,422800,66.97,-
29-OCT-2008,IFCI,IFCI Ltd.,CREDIT SUISSE FIRST BOSTON (SINGAPORE) LTD,SELL,4587440,18.08,-
29-OCT-2008,SAHPETRO,Sah Petroleums Limited,SETU SECURITIES LTD,SELL,182109,30.43,-
29-OCT-2008,SAHPETRO,Sah Petroleums Limited,YUVAK SHARE TRADING PVT LTD,SELL,44368,30.45,-
Post Session Commentary - Oct 29 2008
The Indian markets ended marginally higher after a sharp volatile session through out trading session. Markets witnessed instability ahead of expiry of the Derivative contract of the October 2008 series. Domestic market opened significantly higher on the back of positive cues from the global markets. However the market was not able to continue the same momentum and trimmed its initial gains as investors preferred to book some profits. Market revealed sea-saw movement as it was not able to hold a particular territory and traded with volatility in range bound manner. Most Asian stock markets raised on hopes that the Bank of Japan and the Federal Reserve will cut interest rates this week as a measure to encourage economic growth. BSE Sensex ended above 9,000 level and NSE Nifty above 2,600 mark. From the sectorial front, Metal, Oil & Gas, Auto and IT were in limelight as most of the buying witnessed from these baskets. However, Reality, Pharma, FMCG and Capital Goods stocks contributed to the most of the selling pressure. The BSE Mid Cap and the BSE Small Cap after a sharp rally in the early trade finally ended in negative territory.
Among the Sensex pack 17 stocks ended in green terrain and 13 in red. The market breadth was negative as 1319 stocks closed in red while 1104 stocks closed in green and 75 stocks remained unchanged.
The BSE Sensex closed higher by 36.43 points at 9,044.51 and NSE Nifty ended marginally up by 12.45 points at 2,697.05. The BSE Mid Caps and Small Caps closed with losses of 62.98 points 3,094.48 and by 37 points at 3,674.61. The BSE Sensex touched intraday high of 9,297.76 and intraday low of 8,894.34.
Gainers from the BSE Sensex pack are Hindalco (31.56%), M&M Ltd (8.25%), Wipro Ltd (7.33%), ACC Ltd (6.93%), Sterlite Industries (6.57%), Reliance (4.47%), Tata Power (4.33%), JP Associates (3.53%) and ICICI Bank (3.09%).
Losers from the BSE Sensex pack are Reliance Communication Ltd (10.27%), Ranbaxy Lab (9.62%), DLF Ltd (6.98 %), Satyam Computer (5.44%), HUL (4.74%), HDFC (3.03%), SBI (2.01%), Reliance Infra (1.98%), HDFC Bank Ltd (1.98%) and L&T Ltd (1.52%).
The BSE Metal index ended up by (6.52%) or by 298.19 points at 4,870.87. Major gainers are Hindalco (18.24%), Hindustan Zinc (15.13%), Jindal Steel (15.03%), Sterlite Industries (6.57%, Steel Authority (5.82%) and Welspan Guajrat Sr (5.37%).
The Oil & Gas index gained (2.78%) or 153.81 points to close at 5,678.33 as BPCL (7.91%), Cairn India (7.22%), IOC (6.14%) and Reliance (4.47%) in positive territory.
The BSE Auto index ended higher by (1.63%) or 40.55 points at 2,524.40. Gainers are Bharat Forge (9.75%), M&M Ltd (8.25%), Bajaj Auto (5.65%), Hero Honda Motors (3.74%) and Tata Motors (1.45%).
The BSE Consumer Durables index advanced by (1.46%) or 29.26 points to close at 2,027.42 as Videocon Ind (0.87%), Titna Ind (6.40%) ended in positive territory while Gitanjali GE (8.11%) and Rajesh Export (4.23%) ended in negative territory.
The BSE Reality index lost (3.24%) or 64.79 points to close at 1,933.84. Major losers are Omaxe Ltd. (11.81%), Mahindra Life (11.29%), Orbit Co (10.18%), DLF (6.98%), Sobha Dev (6.07%), Phoenix Mill (1.98%) and Akruti City (0.40%).
The BSE Pharma index closed lower by (3.23%) or 89.79 points at 2,691.72. Losers are Dishman Pharma (19.88%), Aurobindo Pharma (16.32%), Biocon Ltd (13.79%), Wockhardt Ltd (12.76%), Matrix Lab (9.72%) and Cadila Health (3.03%).
Sensex ends with small gains in volatile trade
Expiry of the near month October 2008 derivatives contracts caused high volatility on the bourses today. The market swung between positive and negative negative zone throughout the day with Sensex gaining 36.43 points or 0.4%. Gains in some Asian and European marekts supported domestic bourses.
Reliance Communications slumped 10.27% wheeras Hindalco Industries surged 18.24% ahead of their Q2 results due on Friday, 31 October 2008. The market breadth was weak, reflecting caution among investors after a recent setback in share prices.
Major Asian markets rose on hopes the Bank of Japan and the Federal Reserve will cut interest rates this week to spur growth, and as credit markets continued to show signs of recovery. Key benchmark indices in Japan and Taiwan were up by between 0.15% to 7.74%. However, Key benchmark indices in China, Hong Kong, Singapore and South Korea were down between 0.97% to 3.02%.
Key European markets also rose on Fed rate cut expectations. Key benchmark indices in France and UK were up by between 4.88% to 6.42%. However, Germany’s DAX fell 0.56%. The Fed is seen cutting interest rates at a two-day policy meet that concludes today, 29 October 2008.
The BSE 30-share Sensex gained 36.43 points or 0.4% to 9.044.51. The Sensex jumped 289.68 points at the day's high of 9.297.76 in early trade. The Sensex fell 113.74 points at day’s low of 8,894.34 in mid-morning trade.
The S&P CNX Nifty was up 12.45 points or 0.46% to 2,697.05.
The BSE clocked a turnover of Rs 3,091 crore today, 29 October 2008 compared to a turnover of Rs 3388.65 on Monday, 27 October 2008.
Nifty November 2008 futures were at 2738, at a premium of 40.95 points as compared to spot closing of 2697.05. NSE's futures & options (F&O) segment turnover was Rs 54223.24 crore, which was higher than Rs 46002.30 crore on Monday, 27 October 2008.
Most of the derivatives positions are normally rolled over at the time of expiry of near month contracts. This is done by closing the derivative position for the near month and taking a similar position in the subsequent's month's series.
There has been a massive erosion in investors' wealth this year. The barometer index is down 11,242.48 points or 55.41% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 12,162.26 points or 57.35% below its all-time high of 21,206.77 struck on 10 January 2008.
The BSE Mid-Cap index was down 1.99% at 3,094.48. The BSE Small-Cap index was down 1% at 3,674.61. Both the indices underperformed the Sensex.
The BSE Metal index (up 6.52% to 4,870.87), the BSE Oil & Gas index (up 2.78% to 5,678.33), the BSE Auto index (up 1.63% to 2,524.20), the BSE Consumer Durables index (up 1.46% to 2,027.42), the BSE PSU index (up 0.86% to 4,443.35) outperformed the Sensex.
The BSE Realty index (down 3.24% to 1,933.24), the BSE HealthCare index (down 3.23% to 2,691.72), the BSE FMCG index (down 2.35% to 1,742.07), the BSE Capital Goods index (down 1.48% to 6,683.71), the BSE Bankex (down 0.64% to 4,674.34), the BSE Teck index (down 0.56% to 2,027.62), the BSE Power index (down 0.03% to 1,500.24), and the BSE IT index (up 0.37% to 2,705.77) underperformed the Sensex.
The market breadth was weak. On BSE, 1104 shares advanced as compared to 1319 that declined. 75 shares remained unchanged.
India’s largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) jumped 4.47% to Rs 1,204.40 on shutting down polypropylene plant at the Jamnagar refinery complex with the objective of improving product swing capability and increasing propylene yield. The shutdown is expected to last for approximately four weeks.
ACC (up 6.93% to Rs 473.70), Tata Power Company (up 4.33% to Rs 616.552), Jaiprakash Associates (up 3.53% to Rs 61.65), were the major gainers from the Sensex pack.
India’s largest oil exploration firm by revenue ONGC rose 0.88% ahead of Q2 September 2008 result to be announced today.
DLF (down 6.98% to Rs 202.45), Ranbaxy Laboratories (down 9.62% to Rs 172.85), Hindustan Unilever (down 4.74% to Rs 208.20) were the major losers from the Sensex pack.
Reliance Communications slumped 10.24% ahead of its Q2 results due on Friday, 31 October 2008.
Auto stocks rose after Mahindra & Mahindra (M&M), India's largest tractor maker by sales, said the demand for its products remains healthy despite fears of a global recession. M&M rose 8.25%, despite 20.6% fall in net profit to Rs 226.77 crore on 13.25% rise in total income to Rs 3252.26 crore in Q2 September 2008 over Q2 September 2007. Hero Honda Motors, Tata Motors rose by between 1.45% to 3.74%. India’s largest car maker by sales Maruti Suzuki India fell 1.17%.
Metal stocks rose on rebound in metal prices triggered by strong rally in global stocks. The BSE Metal index gained 6.52% and was the biggest gainer from the sectoral indices on BSE. Tata Steel, Sterlite Industries, Hindustan Zinc rose between 3.35% to 15.13%.
India’s largest aluminum maker by sales Hindalco Industries surged 18.24% ahead of Q2 September 2008 result due on riday 31 October 2008.
India’s second largest aluminum producer by sales National Aluminum Company dipped 1.85%, ahead of Q2 September 2008 result to be announced today.
Banking stocks were mixed despite overnight spurt in American depository receipts (ADRs). India’s second largest private sector bank by net profit HDFC Bank fell 1.98%. HDFC Bank ADR ended up 16.17%. India’s largest private sector bank by net profit ICICI Bank gained 3.19%, as ADR rose 18.96%. India’s largest commercial bank State Bank of India slipped 2.01%.
IT stocks were mixed as a strong rupee offset rally in ADRs. India's third largest IT exporter by sales Satyam Computer Services fell 5.44%, even as ADR rose 16.83%, India's fourth largest IT exporter by sales Wipro rose 7.33%, as ADR jumped 22.84%. India's second largest IT exporter by sales Infosys gained 1.82%, as ADR jumped 15.55%. India's largest IT exporter by sales Tata Consultancy Services jumped 0.37%.
India's rupee rose for a second day as local stocks extended their best gains in two weeks made yesterday on optimism measures by governments worldwide will ease the global credit crunch. The rupee rose 0.1 % to 49.8325 per dollar from 49.8575 on 27 October.
Hindalco Industries clocked the highest volume of 2.18 crore shares on BSE. Unitech (1.6 crore shares), Suzlon Energy (1.04 crore shares), IFCI (76.93 lakh shares) and Reliance Natural Resources (65.70 lakh shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 276.50 crore on BSE. Educomp Solutions (Rs 172.30 crore), Reliance Capital (Rs 138.42 crore), HDFC (Rs 108.84 crore) and Hindalco Industries (Rs 107.81 crore) were the other turnover toppers in that order.
Tata Tea lost 7.42% on reports it may cut tea prices.
Sical Logistics declined 2.16% after the company reported a net loss of Rs 41.93 crore in Q2 September 2008 as compared to net profit of Rs 9.39 crore in Q2 September 2007.
Fortis Healthcare rose 4.09% on reporting net profit of Rs 10.06 crore in Q2 September 2008 as compared to net loss of Rs 15.23 crore in Q2 September 2007.
Unitech advanced 1.43% on entering into a deal to sell a majority stake in telecom unit.
Readymade garments maker Gokaldas Exports surged 20% on reports of Anand Jain, a close confidante of Reliance Industries, picking up close to 10% stake in the firm.
Pre Session Commentary - Oct 29 2008
Today a market is expected to have gap up opening on strong global cues. The US markets ended with huge gains and the Asian markets made are trading significantly higher after a positive opening. On Tuesday, domestic market opened the Muhurat trading session with handsome gains in line global markets. The BSE Sensex and the NSE Nifty both opened with a gap up of more than 5% each. Market extended its gains till the end of session. BSE Sensex ended above the favoulous 9,000 mark and the NSE Nifty above the 2,650 mark. The buying support was seen across all the sectorial indices mainly led by the Realty, Metal, Power Capital Goods, Oil & Gas and Auto stocks. The positive Asian Markets and the European markets along with the relaxing of norms of creeping acquisition norms for promoters by SEBI had provided the support to the market. . We expect that market may gain further ground during the trading session. Investors will also eye on F&O expirery.
The BSE Sensex closed higher by 498.52 points at 9,008.08 and NSE Nifty ended up by 160.40 points at 2,684.60. The BSE Mid Caps and Small Caps closed with gains of 191.23 points at 3,157.46 and by 232.77 points at 3,77.61. The BSE Sensex touched intraday high of 9,056.97 and intraday low of 8,909.34.
Tuesday, the US stock market ended with strong gains with the Dow surging 889 points on bargain hunting and short covering. Strong rebound in other global market also added to the positive sentiments. However, consumer confidence plunged 23.4 to 38.0 in October, according to the Conference Board''s survey. Along with this, August home prices in 20 major metro areas fell 16.6% year-over-year, according to the S&P/Case-Shiller Index. Further Fed is expected to cut interest rate in its meeting today. Crude oil futures for the December delivery fell $0.49 or 0.8% to $62.73 a barrel on New York Mercantile Exchange. Crude oil fell to 17-month low, after a report showed that U.S. consumer confidence dropped to the weakest level on record in October.
The Dow Jones Industrial Average (DJIA) closed higher by 889.35 points at 9,065.12. NASDAQ index gained 143.57 points to 1,649.47 and the S&P 500 (SPX) surged 91.59 points to close at 940.51 points.
Indian ADRs ended up. In technology sector, Wipro ended higher by (22.84%) and Satyam gained (16.83%), Infosys ended up by (15.55%) and Patni Computers closed higher by (4.96%). In banking sector ICICI Bank was up by (18.96%) and HDFC Bank gained (16.17%). In telecommunication sector, Tata Communication inclined by (23.45%), and MTNL was up by (13.43%). Sterlite Industries increased by (21.55%).
Today major stock markets in Asia are trading higher. Japan''s Nikkei is higher by 487.42 points at 8,109.34. Further Hang Seng advanced 348.12 points at 12,944.41. Taiwan Weighted is also up by 106.99 points at 4,506.96. The Straits Times surged 38.01 points at 1,704.50 and South Korea’s Seoul Composite advanced 32.98 points at 1,032.14.
The FIIs on Monday stood as net seller in equity and in debt. Gross equity purchased stood at Rs2284.10 Crore and gross debt purchased stood at Rs25.00 Crore, while the gross equity sold stood at Rs3462.10 Crore and gross debt sold stood at Rs240.90 Crore. Therefore, the net investment of equity and debt reported were (Rs1178.00 Crore) and (Rs215.90 Crore) respectively.
On Monday, the partially convertible rupee ended higher at 49.88 per dollar, against Friday’s close of 49.95. India''s rupee rebounded from its earlier low on speculation that the central bank bought the currency to stem losses.
On BSE, total number of shares traded was 7.14 Crore and total turnover stood at Rs. 679.93 Crore. On NSE, total volume of shares traded was 12.51 Crore and total turnover was Rs 1,557.10 Crore.
Top traded volumes on NSE Nifty – Unitech Ltd with total traded volume of 10127095 shares, followed by Suzlon Energy with 7692434 shares, IFCI with 7403533 shares, Hindalco with 4816609 shares and Reliance Natural Resources with 4134324 shares respectively.
On NSE Future and Options, total numbers of contracts traded in index futures were 311629 with a total turnover of Rs.3,969.41 Crore. Along with this total number of contracts traded in stock futures were 235084 with a total turnover of Rs.2,237.47 Crore. Total numbers of contracts for index options were 288416 and total turnover was Rs.4,088.39 Crore and total numbers of contracts for stock options were 5160 and notional turnover was Rs.58.09 Crore.
Today, Nifty would have a support at 2,624 and resistance at 2,826 and BSE Sensex has support at 8,760 and resistance at 9,420.
Daily Call - Oct 29 2008
This was the best performance we saw from the global markets on Diwali day. And today for the new year, the world markets are booming again. This fantastic back to back rally in the global markets is hard to believe, but true. Rate cuts are now expected not only in the US but also Japan, which indicates the situation is serious.
We believe that markets do not bottom out with 10% gains. We saw such gains in US, Japan and Honk Kong and many other exchanges this week. But this is time also, when rates are being cut and investors pouring in money. So allow the rally to continue if you are partly invested. But if you are fully invested, sell in this rally. Today is the settlement. Looks tough that we will be able to maintain the initial gains if they are more than 100 point in the Nifty.
Precious metals turn dull
Firm dollar puts downward pressure on bullion metals
Gold prices ended little lower on Tuesday, 28 October, 2008. This was due to the dollar that remained relatively firm. Silver prices also dropped today.
Earlier last week, gold prices had slipped to lowest levels in thirteen months as it fell below $700 level. A strong dollar was the main reason behind this. Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. Losses in equity markets had also forced traders to sell gold. Since past couple of weeks, precious metals, mainly gold, had dropped as traders tried to gain back some of the money that had lost in other markets.
On Tuesday, Comex Gold for December delivery fell $2.4 (0.3%) to close at $740.5 an ounce on the New York Mercantile Exchange. Prices fell to a low of $724 and also rose to a high of $756 earlier during the day. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (29%) since then. Last week, gold prices ended lower by 7.3%.
This year, gold prices have lost 11.9% till date. The dollar index has gained 10.5% this year. For the third quarter ended September, 2008, gold prices ended lower by 5.1%. It was the first quarterly loss for the yellow metal since the second quarter in FY 2007. Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. For first quarter prices gained 10.7%.
On Tuesday, Comex silver futures for December delivery fell 40 cents (4.4%) to $8.79 an ounce. Last week, silver fell 0.4%. Till date, silver has lost 42% this year. Silver had ended month and quarter of September 2008 with a loss of 10%. For the second quarter, it had gained a paltry 1.4%. Silver had gained 16% in Q1. The metal also had gained for seven straight years.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices and vice versa.
In the currency market on Tuesday, the dollar index, which tracks the value of the greenback against a basket of other major currencies, rose 0.5%.
In the crude market on Monday, crude for December delivery fell 49 cents, or 0.7%, to end at $62.73 a barrel on the New York Mercantile Exchange.
Earlier this year, the weakening dollar and higher global demand for raw materials had led to records this year for commodities including gold. Gold reached a record in March as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. The Federal Reserve halted cuts to its target bank lending rate in April, after slicing it in seven steps to 1.5% currently from 5.25% in September, 2007. But there are chances that Fed might curtail the rate to 1% in its next meeting.
Gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for December delivery closed lower by Rs 77 (0.63%) at Rs 11,965 per 10 grams. Prices rose to a high of Rs 12,099 per 10 grams and fell to a low of Rs 11,911 per 10 grams during the day’s trading.
At the MCX, silver prices for December delivery closed Rs 162 (0.98%) lower at Rs 16,286/Kg. Prices opened at Rs 16,355/kg and fell to a low of Rs 16,148/Kg during the day’s trading.
Crude slips marginally
Oil continues to lose as OPEC mulls over another production cut
Crude prices rose fell by more than half a dollar on Tuesday, 28 October, 2008 and closed below the $63/barrel level as traders continued to doubt about energy demand in the coming months. There were also reports in the market that OPEC was thinking about another production cut. Last week, OPEC had decided on a production cut. The decision, however, failed to perk up crude prices as traders still remained extremely worried that an ongoing recession will curtail demand for energy in the coming months.
On Tuesday, Crude-oil futures for light sweet crude for December delivery closed at $62.73/barrel (lower by $0.49 or 0.7%) on the New York Mercantile Exchange. Prices earlier touched a low of $61.61. Prices reached a high of $147 on 11 July but have dropped almost 58% since then. Last week, prices dropped by 11% after shedding 7.5% in the week prior to that. On a yearly basis, crude price is lower by 31%. For this year in 2008, crude prices have dropped 38%.
OPEC officials decided last Friday at its meeting at Vienna that OPEC will pare production by 1.5 million barrels a day w.e.f 1 November, 2008. The official production quota is currently 28.8 million barrels, and it will be cut by 1.5 million in November.
Last week, the Centre for Global Energy Studies said that global oil demand may fall for the first time in 15 years in 2008 and stagnate next year.
Earlier this month, in the latest monthly prediction, the Organization of the Petroleum Exporting Countries said that global oil consumption will grow 550,000 barrels a day this year compared with a year ago, down 330,000 barrels from last month's forecast. Total consumption will stand at 86.5 million barrels a day. For the next year, demand will grow 800,000 barrels a day, down 100,000 barrels from OPEC's September prediction.
The Energy Information Administration, the statistics arm of the U.S. Energy Department, also lowered its growth outlook for this year's global oil consumption by 350,000 barrels from a month ago.
For the third quarter of the year crude prices ended lower by 28%. This was the biggest quarterly drop since 1991. Before that, crude prices had gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. For the month of September, prices registered drop of 13%.
Against this background, November reformulated gasoline fell 1.5% to end at $1.4555 per gallon, while November heating oil finished almost flat at $1.912 per gallon.
November natural-gas futures gained 1.1% to end at $6.186 per million British thermal units.
At the MCX, crude oil for November delivery closed at Rs 3,250/barrel, lower by Rs 61 (1.8%) against previous day’s close. Natural gas for November delivery closed at Rs 316.7/mmbtu, lower by Rs 2.2/mmbtu (0.7%).
The U.S. Energy Information Administration will offer its weekly update on petroleum supplies tomorrow, Wednesday, at 10. am E.T.
Huge rally at Wall Street
Dow comes back above 9,000 mark with its second highest one day gain
There was a late day huge rally at Wall Street on Tuesday, 28 October, 2008. There was extreme volatility since the start of the day. Though the market started on a strong note, it pared almost all of its gains within first couple of hours of trading. But then, with help of GM and Boeing, Dow managed to climb up again. Financials continue to be a laggard even today. But energy sector provided good support today despite crude prices closing marginally down. The sector got some good support from good earning reports from a couple of oil companies.
Bargain hunting and short-covering helped offset the weakest consumer confidence reading on record. Every major economic sector concluded the session with a gain.
The Dow Jones Industrial Average ended the day up by 889 points, to 9,065. The Nasdaq Composite Index, finished higher by 143 points at 1,649. S&P 500 finished higher by 91 points at 940.
All thirty Dow stocks ended in the green today. Alcoa, Boeing and GM were the main Dow winners today.
Boeing was up almost 15% today after it reached a four-year tentative labor agreement with its striking machinist union. The union, Boeing's largest, has been on strike since the beginning of September due to disagreements on compensation, benefits and job security. On the other hand, GM shares were up today on reports that the Department of Energy is working to arrange $5 billion in loans to the auto maker, which would help GM merge with Chrysler.
The Conference Board at USA reported today that U.S. consumer confidence plunged in October, reaching an all-time low. The current financial crisis hit the sentiment of consumers in US.
Despite falling gasoline prices, the October consumer confidence index fell to 38 from an upwardly revised September reading of 61.4. Expectations with the percentage of consumers expecting business conditions to worsen over the next six months rose to 36.6% from 21%, and those was expecting fewer jobs rising to 41.5% from 26.9%.
The report also stated that the present situation index fell to 41.9 from 61.1. The expectations index reached a record low in October, hitting 35.5, compared with 61.5 in the prior month.
In another important economic report today, The Case-Shiller home price index, published on Tuesday, 28 October, 2008 by Standard & Poor's showed that home prices in 20 major U.S. cities dropped 1% in August compared with July and fell a record 16.6% from the previous year. Prices have now fallen 20.3% from their peak in June 2006. Phoenix, Las Vegas was hit the hardest.
Credit conditions tightened significantly and foreclosures mounted in September and October.
Among major earning reports for the day, Whirlpool cut its 2008 forecast and announced it was cutting 5,000 jobs.
The energy sector provided good support today following better-than-expected results at Occidental Petroleum and Valero Energy. The sector is also getting an indirect boost from BP which posted stronger-than-expected earnings and revenue growth.
Crude prices rose fell by more than half a dollar on Tuesday, 28 October, 2008 and closed below the $63/barrel level as traders continued to doubt about energy demand in the coming months. There were also reports in the market that OPEC was thinking about another production cut. Crude-oil futures for light sweet crude for December delivery closed at $62.73/barrel (lower by $0.49 or 0.7%) on the New York Mercantile Exchange. Prices earlier touched a low of $61.61.
Volume on the New York Stock Exchange topped 1.7 billion, with advancing stocks overriding those declining more than 4 to 1. On the Nasdaq, nearly 1.3 billion shares traded, and advancers topped decliners 2 to 1.
Economic and earning reports will dominate tomorrow’s session. Durable goods orders for September are due ahead of the opening bell followed by the weekly crude inventory report. Other than that, tomorrow, the Federal Open Market Committee (FOMC) announces its latest decision regarding monetary policy and market is expecting a 50 bps to 75 bps cut in fed fund rate which currently stands at 1.5%.
Colourful Sparklers...Enjoy the moment
I'd rather have a moment of wonderful than a lifetime of nothing special.
Happy Diwali and hope the festivities continue on the bourses. For the moment things look fine and there is no harm in rejoicing at the gains. You could in fact celebrate more if you book some gains. Given the strong sentiment on muhurat trading followed by the fireworks in global markets, we see a strong start to the day.
The F&O expiry today will provide the avoidable swings. Settlement for trades done on Stocks bought on October 27 and October 28, 2008 will be done on October 31, 2008. Keep your position light. Avoid any fresh buying for the day. Thursday being a holiday, you never know how global markets shape up as we open on Friday morning.
Asian stocks are up on hopes that Japan will cut interest rates. China is also expected to take steps to boost equities. In short there is a concerted effort world over to bring back some life to the equity markets.
The BOJ is considering lowering its benchmark rate by a quarter percentage point, according to reports. Meanwhile, the Federal Reserve will announce its decision later in the evening. Expectations are of a rate cut.
The Dow skyrocketed by 906 points during the day before ending 889 points up. This is the Dow's second-biggest one-day point gain ever. Two weeks ago it had zoomed by 936-point rally two weeks ago. The Standard & Poor's 500 (SPX) index added 91.6 points or 10.8%. The Nasdaq composite rose 143.6 points or 9.5%.
Reports say the Federal Reserve started buying commercial paper on Monday. The Treasury said it will start handing out $125 billion to nine banks this week to get credit moving again. These are part of the $700 billion bank bailout plan.
Libor, the overnight bank-to-bank-lending rate, fell to 1.24% from 1.26% on Monday.
US light crude oil for December delivery fell 49 cents to a 17-month low and ended at $62.73 a barrel.
The dollar gained versus the euro and the yen.
According to provisional data on the exchanges, FIIs remained net sellers to the tune of Rs691.8mn while domestic funds bought Rs247.8mn .
Results today: 3m India Ltd, Accel Frontl , Advik Labort , Aishwarya Te , Alk Securiti , Alpa Lab , Bannari Amma, Beeyu Overseas , Bharati Ship, Britania , Cairn Ind , Calfnia Sof , Capro Chem , Centum Elec , Cethar Indus , Clio Infote , , Disa India , Divi's Lab , Dolat Inv Lt , Dynamatic Te , Eicher Motor , Eid Parry , Elnet Techno , Everonn Sys , First Leas C , Fortis Health , Goldst Infra , Goldston Tec, Himad Chem, Insutec Indi , Intec Securi , Iqms Softwar , Ivp Limited , Jindal Stain , JRG Securities Kew Industries , KSK Energy , Labh Constrc , Lakshmi Over , Landmrk Pro , M&M, Matrix Labs , Rane Holdin , Rashtriya Chem, Sabero Org, Sical Log , Subex , Surana Corpr , Ucal Fuel, V Guard Ind , Vesuvius Inda , Vivimed Labs
Market extended losses to fourth straight trading session on Monday led by weakness across the US and the Asian markets and intensified selling witnessed the bourses. However, after hitting October 2005 lows in the mid-afternoon trades, key indices staged a smart recovery on the back of short covering and bargain hunting in the index pivotal like Reliance Industries, Bharti Airtel, ICICI Bank, RCom and Reliance Infra which saw the benchmark index to close above the 8,500 mark.
The BSE benchmark Sensex recovered over 800 points and the NSE Nifty index recouped almost 280 points from their respective lows. Finally, the BSE benchmark Sensex lost 191 points or 2.2% to close 8,509 and the NSE Nifty index declined 59 points to close at 2,524.
Shares of Suzlon erased all the early losses and ended flat at Rs46.9 after the company announced rights issue has been reviewed by the Securities Issue Committee of the Board of Directors and in view of the current capital market environment; it has been decided to suspend the right issue.
The corresponding deferment of the outflow is being made simultaneously. Since the right issue was planned to further accelerate the original plans of the Company, the proposed suspension shall not impact the original plans of the Company.
The scrip touched an intra-day high of Rs55.5 and a low of Rs42 and recorded volumes of over 1,00,00,000 shares on BSE.
Reliance Industries rallied by over 6% to Rs1074 erasing early losses on the back of bargain hunting witnessed at lower levels. The scrip touched an intra-day high of Rs1087 and a low of Rs930 and recorded volumes of over 3,00,00,000 shares on BSE.
Shares of Nagarjuna Construction surged by over 13% to Rs48 after the company announced results for the quarter ended September 30, 2008. The company posted a net profit after tax of Rs423.02mn for the quarter ended September 30, 2008 as compared to Rs336.44mn for the quarter ended September 30, 2007.
Total Income increased from Rs6775.31mn for the quarter ended September 30, 2007 to Rs10568.15mn for the quarter ended September 30, 2008. The scrip touched an intra-day high of Rs50.9 and a low of Rs40.5 and recorded volumes of over 27,000 shares on BSE.
Shares of National Aluminium plummeted by over 13% to Rs139 after the company announced that it slashed prices for the third time this month. The company said that it cut prices by as much as Rs8,000 per mt. The scrip touched an intra-day high of Rs166 and a low of Rs108 and recorded volumes of over 4,00,000 shares on BSE.
Government is working on proposal to make it mandatory for RIL to first meet domestic demand of diesel before exporting. (ET)
- Ranbaxy Laboratories has reset the conversion price of its FCCB to Rs555.9 from Rs908 per share. (BS)
- Suzlon scraps rights issue plan. (BS)
- RIL offers VRS to Patalganga staff. (BS)
- Falling navigable depth at Haldia may hit IOC refining operations. (BL)
- L&T to set up heavy engineering facility in Oman to manufacture high-pressure heat exchangers and reactors. (FE)
- ONGC expects Imperial Energy deal to be sealed in November, 2008. (BS)
- SBI to open 1,500 or more branches this year (FE)
- ONGC to commission Dahej plant by year-end. (BS)
- Essar Steel puts staff at Canadian business Algoma on layoff notice. (ET)
- Government may allow NTPC to invest over Rs260bn in setting up five large JV subsidiaries and a foreign subsidiary to acquire overseas assets. (ET)
- RIL polypropylene plant to stay shut for four weeks. (ET)
- Reliance Infrastructure’s 4,000 MW power project at Shahpur in Raigad district faces legal hurdle on environmental ground (BS)
- Nalco cuts aluminum prices by Rs8,000 per ton (ET)
- Reliance Capital awaits nod from NHB and RBI for its housing finance and consumer finance business (ET)
- M&M to spend Rs3bn towards the brand building and promotion for launching vehicles in US (BS)
- Future Group and its PE arm have picked up more than 50% stake in multi-cuisine lifestyle restaurant chain Blue Foods (ET)
- The Orissa government has given a go-ahead to NTPC for its proposed 4,600MW thermal power plant in Dhenkanal district (BL)
- SBI expects interest rates to soften (BL)
- Marico targeting 20% revenue contribution from its new products in five years time (DNA)
- NTPC to import 8.25mn ton of coal in the current year (DNA)
- Tata Tea may cut prices of its branded packaged tea if there is a significant fall in the commodity prices (DNA)
- HCC to curb its expansion plan due to current market conditions (DNA)
- Bhushan Steel cuts production of galvanized steel by up to 30% owing to a slump in domestic demand. (ET)
- IRDA gives a principle nod to Star Union Dai-ichi life Insurance, JV between Bank of India, Union Bank and Dai-ichi Life. (ET)
- Visa Steel shuts 50,000 ton pa ferro chrome plant owing to poor market conditions. (FE)
- Unity Infraprojects wins contract worth Rs3.75bn. (FE)
- Era Infra Engineering bags contract worth Rs4.5bn for construction of new power plant in Delhi. (FE)
- GACL to set up 100MW gas-based power plant in collaboration with GSPCL at Dahej (BS)
- PSTL may convert FCCB’s into equity (FE)
- Sun TV has launched FM radio station at Silliguri under the brand ‘S FM’ (FE)
- ICRA has downgraded Sona Koyo’s commercial paper from A1+ to A1 rating (ET)
- Petronet proposed to take participating interest in gas assets in Papua New Guinea (BL)
- Alok Industries to venture into the work-ware segment (BL)
Economic Front Page
Sebi relaxed the creeping acquisition norms and allowed promoters to annually raise their stake through the route to 75% via open market purchases instead of 55% earlier.
Companies planning to raise capital abroad may have to offer a third of incremental equity in domestic market. (ET)
The Ministry of Communications and IT has asked the Parliament to allow operators to pay separate spectrum charges on the revenues earned from 2G and 3G services, respectively. (BL)
Fall in demand hits cement companies realizations. (BL)
Sebi may limit FMP’s realty sector investments (ET)
Government’s plan for fertilizer bonds could face delays (ET)
Government to assess liquidity crunch in pharma sector. (ET)
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