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Thursday, November 06, 2008
Asian markets follow wall street
Hang Seng, Kospi Plunge by about 7% while Nikkei manage 6.5% fall
The stock markets across the Asian region suffered deep losses after Wall Street plunged overnight, shrugging off the mood of optimism surrounding Barack Obama's election, as economic data revealed deep cuts in employment by private employers and a contraction in services sector activity in October.
On Wall Street, the Dow Jones Industrial Average slumped 5.1% to 9,139.27, as investors worried about the task ahead for President-elect Barack Obama in dealing with the poor shape of the U.S. economy. The S&P 500 index sank 5.3% to 952.77, while the Nasdaq Composite shrank 5.5% to 1,681.64.
In commodity market, crude oil prices dropped to $65 a barrel in the Asian session on signs of slowing demand. December crude-oil futures slipped 56 cents to $64.74 a barrel in electronic trading recently, after dropping $5.23 to $65.30 a barrel Wednesday on the New York Mercantile Exchange
In the currency market, the U.S. dollar strengthened to the lower 98-yen levels in late Tokyo deals. The dollar was quoted at 98.07-98.10 yen compared to the upper 97-yen range in early trade and mid 99-yen levels late Wednesday in Tokyo.
The Chinese yuan weakened to 6.8274 a dollar in over-the-counter trading, down from Wednesday's close of 6.8240.
The Australian dollar fell from the recent two-week highs on Thursday, as mounting worries about a global economic slowdown offset strong employment data. In late trade, the Aussie was quoted at US$0.6724, off a session high of US$0.6815 hit soon after the jobs data was released, and down from US$0.6888 late Wednesday. The local unit struck a two-week peak of US$0.7015 on Monday.
The New Zealand dollar closed weaker as investors avoided riskier currencies. However, it rallied a little after the unemployment data came in slightly better than expected. The kiwi finished the domestic session at US$0.5930, down from Wednesday's close of US$0.6048.
The South Korean won fell sharply against the greenback. The won ended at 1,330.8 a dollar, down from Wednesday's close 1,266.0 a dollar. The won has dipped about 29 percent to the dollar so far this year.
US dollar showed strength against the Philippine peso today during early Asian deals. The dollar-peso pair hit a 2-day high of 48.5850 compared to 48.0050 hit late New York Wednesday. The pair is currently trading at 48.47.
Coming back in equities, China's main stock index dropping to a more than two-year low while benchmarks in Japan, Hong Kong, South Korea and Taiwan slumped more than 5%.
The Japanese stock market plummeted on Thursday, recording its biggest one-day loss in nearly two weeks, as a stronger yen hit exporters amid renewed fears about a global economic slowdown. Automakers tumbled on worries about sliding earnings due to the global financial crisis. The benchmark Nikkei 225 index fell 622.1 points or 6.58% to close at 8,899.1 after posting sharp gains for the previous two sessions. The broader Topix index of all First Section issues on the Tokyo Stock Exchange closed down 57.6 points or 5.96% at 909.3.
On the economic front, the minutes from the October 6-7 meeting showed no clear signs that the Bank of Japan's policy board was considering a rate cut at that meeting, ahead of its decision to slice rates to 0.3% on October 31. Japan's government pressed the Bank of Japan to join global efforts to contain the global financial crisis in the weeks leading up to the central bank's first rate cut in seven years, the minutes showed.
Meanwhile, Japan's Cabinet Office said in a preliminary report that the leading index rose to 89.2 in September from 89.0 in August. A year ago, the index had logged 95.4. The September reading matched economists' expectations. At the same time, the coincident economic index logged a reading of 100.8, up from 100.7 recorded in August. Moreover, the lagging index fell to 99.5 from 100.5 seen in August.
The Chinese stock market closed lower, led by financial and property stocks, reversing most of the gains. The benchmark Shanghai Composite Index fell 42.89 points or 2.44% to close at 1,717.72.
In Hong Kong, the Hang Seng Index slumped 7.08% to 13,790.04 and the Hang Seng China Enterprises Index lost 8.67% to 6,599.50.
The Australian stock market closed sharply lower, reversing yesterday gain of about 3%. The market started off lower, extended its losses as miners fell on renewed economic fears and banks lost ground after two of Australia's top four banks revealed a combined A$352 million exposure to two collapsed companies. The benchmark S&P/ASX 200 index closed down 186.9 points or 4.31% at 4,149.7 and the broader All Ordinaries index lost 180.8 points or 4.22% to close at 4,106.5.
On the economic front, data released by the Australian Bureau of Statistics showed that the unemployment rate in Australia held steady in October at 4.3% on year. However, the total number of employed persons in Australia soared by 34,300 to 10.77 million from the previous month. Full-time employment was down 9,200 to 7.69 million. Participation rate also remained steady at 65.2%. Unemployment increased by 7,000 to 487,000.
The New Zealand stock market closed sharply lower, reversing yesterday's gains. Wall Street's plunge overnight and weakness in the stock markets in the Asia-Pacific region prompted investors to sell stocks. The benchmark NZX 50 index closed down 46.0 points or 1.59% at 2,840.1 and the broader NZX All Capital index shed 39.3 points or 1.4% to 2,876.3.
On the economic front, a report form Statistics New Zealand showed that New Zealand's unemployment rate rose to 4.2% in the September quarter, its highest level in nearly five years, from 3.9% in the three months to June. Analysts expected unemployment rate to decline to 4.3%. Unemployment has risen in each of the last three quarters after hitting a record low of 3.4% in the December quarter of last year. According to the report, the number of people in jobs rose slightly to a record high of 2.17 million in the September quarter, while the number of unemployed people jumped 6.3% to 94,000.
The South Korean stock market tumbled, snapping a five-day winning streak. The benchmark Korea Composite Stock Price Index or KOSPI closed down 89.28 points or 7.56% at 1,092.22 after falling to as low as 1,081.79. Steep losses here prompted the Korea exchange to suspend program trading for five minutes earlier in the day after the main index futures prices dropped more than 5%. This marked the 19th trading suspension aimed at cooling markets this year.
On the economic front, South Korea's core inflation grew at a faster pace than other advanced nations as a sharp decline in its currency value increased overall import prices. According to a report compiled by the Organization for Economic Cooperation & Development, South Korea's core inflation, excluding volatile food and oil prices, jumped 4.1% in September from a year earlier. The figure compared with the average of 2.4% for OECD member countries.
The Bank of Korea said in a report that the money supply showed the weakest growth since December 2007, when it rose 11.5%. L, which is the broadest measure of money supply, moved up 12.1% year-on-year in September, down from 13.3% in August. The liquidity aggregate reached 2,233.8 trillion won in September.
In Philippines, the benchmark index PSEi toppled 3.22% or 64.59 points to 1,941.62 keeping in line with other regional markets following heavy losses on Wall Street overnight.
On the economic front, month-on-month growth rate of the General Retail Price Index (GRPI) in the National Capital Region (NCR) dropped to -0.2% percent in August from 0.7 % in July. On an annual basis, the growth rate of the GRPI in NCR eased to 13.3 % in August from 14% in July.
Elsewhere, Singapore's Straits Times Index dropped 2.62% to 1,819.20 and Taiwan's Taiex shrank 5.71% to 4,694.12. Indonesia’s Jakarta Composite dropped by 58.38 points or 4.27% to 1,307.90 while Malaysia’s Kula Lumpur Composite index went down by 19.29 points or 2.11% closing the day at 895.95.
In the other regional market, European stocks dropped sharply for a second session, as expected rate relief from the Bank of England and the European Central Bank was not enough to offset continued worries about corporate profits.
By region, the U.K. FTSE 100 fell 2.9% to 4
BSE Bulk Deals to Watch - Nov 6 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
6/11/2008 533029 ALKALI MATRIX EQUITRADE PVT. LTD. B 420287 149.54
6/11/2008 533029 ALKALI MARWADI SHARES AND FINANCE LIMITED B 131890 153.07
6/11/2008 533029 ALKALI EUREKA STOCK AND SHARE BROKING SERVICES LIMITED B 73007 157.59
6/11/2008 533029 ALKALI OPG SECURITIES P LTD B 1555777 155.18
6/11/2008 533029 ALKALI SAM GLOBAL SECURITIES LTD B 153401 159.94
6/11/2008 533029 ALKALI B K SHAH CO B 72401 154.40
6/11/2008 533029 ALKALI H.J. SECURITIES PVT. LTD. B 250497 142.92
6/11/2008 533029 ALKALI YUVAK SHARE TRADING PVT LTD B 120818 156.90
6/11/2008 533029 ALKALI MATRIX EQUITRADE PVT. LTD. S 420287 149.29
6/11/2008 533029 ALKALI SRI SALASAR SUPPLIER PVT LTD S 55000 150.79
6/11/2008 533029 ALKALI MARWADI SHARES AND FINANCE LIMITED S 131890 153.04
6/11/2008 533029 ALKALI EUREKA STOCK AND SHARE BROKING SERVICES LIMITED S 72657 157.87
6/11/2008 533029 ALKALI OPG SECURITIES P LTD S 1555777 155.29
6/11/2008 533029 ALKALI SAM GLOBAL SECURITIES LTD S 153401 159.46
6/11/2008 533029 ALKALI B K SHAH CO S 72401 152.97
6/11/2008 533029 ALKALI H.J. SECURITIES PVT. LTD. S 250497 142.11
6/11/2008 533029 ALKALI YUVAK SHARE TRADING PVT LTD S 119317 155.39
6/11/2008 506074 ARSHIYA INTL MERRILL LYNCH CAPITAL MARKETS ESPANA SA SV B 601000 87.00
6/11/2008 506074 ARSHIYA INTL MORGAN STANLEY MUTUAL FUND AC MORGAN STANELY GROWTH FUND S 440000 87.00
6/11/2008 530355 ASIAN OILFIE GAURAV SUD S 55894 46.65
6/11/2008 531335 CARN NUT ANA PRADEEP KUMAR DHELIA B 65000 51.60
6/11/2008 531335 CARN NUT ANA MACKERTICH CONSULTANCY SERVICESPVTLTD S 65000 51.60
6/11/2008 532643 GANESHFORGIN COPTHALL MAURITIUS INVESTMENT LIMITED B 272966 9.75
6/11/2008 532643 GANESHFORGIN BSMA LIMITED S 272966 9.75
6/11/2008 532708 GVK POWERINF QUANTUM M LIMITED B 8680349 16.29
6/11/2008 511728 KZLEASING YOGESH GIRDHARLAL PANDYA S 22395 18.25
6/11/2008 512167 MATRA REALT KOTAK MAHINDRA INVESTMENTS LIMITED S 87668 2.80
6/11/2008 507609 OLYMPIC OIL NILIMA UDAY DESAI B 5000 3.67
6/11/2008 507609 OLYMPIC OIL PUNNISANGHAVI B 10000 3.67
6/11/2008 507609 OLYMPIC OIL PATIL VIJAY BALWANT S 15000 3.67
6/11/2008 531219 POONAM PHARM S SIKARIA B 100000 1.70
6/11/2008 530047 RAI SH REK M C S BUILDWELL PVT LTD S 27998 85.00
6/11/2008 532093 VENKAT PHARM ANKUR CHOPRA HUF B 164028 2.70
6/11/2008 532093 VENKAT PHARM ANKUR CHOPRA S 164028 2.70
NSE Bulk Deals to Watch - Nov 6 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
06-NOV-2008,ALKALI,Alkali Metals Limited,ALPHA CHEMIE TRADE AGENCIES PVT LTD,BUY,55120,148.21,-
06-NOV-2008,ALKALI,Alkali Metals Limited,AMBIT SECURITIES BROKING PVT. LTD.,BUY,307595,154.33,-
06-NOV-2008,ALKALI,Alkali Metals Limited,B K SHAH CO KETAN BHAILAL SHAH,BUY,87337,151.79,-
06-NOV-2008,ALKALI,Alkali Metals Limited,CHOKHANI SECURITIES LTD,BUY,185756,156.54,-
06-NOV-2008,ALKALI,Alkali Metals Limited,CPR CAPITAL SERVICES LTD.,BUY,123494,157.43,-
06-NOV-2008,ALKALI,Alkali Metals Limited,DINDAYAL BIYANI STOCK BROKERS LTD,BUY,195633,159.99,-
06-NOV-2008,ALKALI,Alkali Metals Limited,DINESH MUNJAL,BUY,139711,160.52,-
06-NOV-2008,ALKALI,Alkali Metals Limited,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,BUY,170531,158.14,-
06-NOV-2008,ALKALI,Alkali Metals Limited,G RAMAKRISHNA,BUY,52604,154.52,-
06-NOV-2008,ALKALI,Alkali Metals Limited,HARESH VITTHALDAS RAMI,BUY,54515,157.70,-
06-NOV-2008,ALKALI,Alkali Metals Limited,HIMAL K PARIKH-HUF,BUY,57414,160.73,-
06-NOV-2008,ALKALI,Alkali Metals Limited,JAMUNARANI S,BUY,52913,161.66,-
06-NOV-2008,ALKALI,Alkali Metals Limited,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,86194,154.34,-
06-NOV-2008,ALKALI,Alkali Metals Limited,MANIPUT INVESTMENTS PVT LTD,BUY,103317,155.85,-
06-NOV-2008,ALKALI,Alkali Metals Limited,MANSUKH SECURITIES & FINANCE LTD,BUY,55972,153.22,-
06-NOV-2008,ALKALI,Alkali Metals Limited,MARWADI SHARES AND FINANCE LIMITED,BUY,191645,148.52,-
06-NOV-2008,ALKALI,Alkali Metals Limited,MLB CAPITAL PVT LTD,BUY,68126,154.21,-
06-NOV-2008,ALKALI,Alkali Metals Limited,OPG SECURITIES PVT. LTD.,BUY,70266,157.45,-
06-NOV-2008,ALKALI,Alkali Metals Limited,PRASHANT JAYANTILAL PATEL,BUY,192680,158.84,-
06-NOV-2008,ALKALI,Alkali Metals Limited,PUJA TAPARIA,BUY,85947,158.38,-
06-NOV-2008,ALKALI,Alkali Metals Limited,R.M. SHARE TRADING PVT LTD,BUY,85925,147.72,-
06-NOV-2008,ALKALI,Alkali Metals Limited,SANJAY BHANWARLAL JAIN,BUY,102831,162.73,-
06-NOV-2008,ALKALI,Alkali Metals Limited,SHAH LALIT V,BUY,59505,158.36,-
06-NOV-2008,ALKALI,Alkali Metals Limited,SMC GLOBAL SECURITIES LTD.,BUY,134709,157.99,-
06-NOV-2008,ALKALI,Alkali Metals Limited,STANDARD SECURITIES & INVESTMENT INTERMEDIATES LIMITED,BUY,58960,154.79,-
06-NOV-2008,ALKALI,Alkali Metals Limited,SUBRAMANIAN SITTRARASU,BUY,51203,163.54,-
06-NOV-2008,ALKALI,Alkali Metals Limited,TRANSGLOBAL SECURITIES LTD.,BUY,186159,158.85,-
06-NOV-2008,ALKALI,Alkali Metals Limited,YUVAK SHARE TRADING PVT LTD,BUY,365695,158.35,-
06-NOV-2008,GVKPIL,GVK Power & Infrastructur,QUANTUM (M) LIMITED,BUY,12430300,16.27,-
06-NOV-2008,ALKALI,Alkali Metals Limited,ALPHA CHEMIE TRADE AGENCIES PVT LTD,SELL,30120,165.15,-
06-NOV-2008,ALKALI,Alkali Metals Limited,AMBIT SECURITIES BROKING PVT. LTD.,SELL,307595,154.80,-
06-NOV-2008,ALKALI,Alkali Metals Limited,B K SHAH CO KETAN BHAILAL SHAH,SELL,87337,153.75,-
06-NOV-2008,ALKALI,Alkali Metals Limited,CHOKHANI SECURITIES LTD,SELL,185756,158.69,-
06-NOV-2008,ALKALI,Alkali Metals Limited,CPR CAPITAL SERVICES LTD.,SELL,123494,157.87,-
06-NOV-2008,ALKALI,Alkali Metals Limited,DINDAYAL BIYANI STOCK BROKERS LTD,SELL,195633,160.82,-
06-NOV-2008,ALKALI,Alkali Metals Limited,DINESH MUNJAL,SELL,139711,159.81,-
06-NOV-2008,ALKALI,Alkali Metals Limited,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,SELL,168531,158.15,-
06-NOV-2008,ALKALI,Alkali Metals Limited,G RAMAKRISHNA,SELL,52604,154.42,-
06-NOV-2008,ALKALI,Alkali Metals Limited,HARESH VITTHALDAS RAMI,SELL,54515,162.26,-
06-NOV-2008,ALKALI,Alkali Metals Limited,HIMAL K PARIKH-HUF,SELL,57414,159.67,-
06-NOV-2008,ALKALI,Alkali Metals Limited,JAMUNARANI S,SELL,52913,160.26,-
06-NOV-2008,ALKALI,Alkali Metals Limited,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,86194,154.97,-
06-NOV-2008,ALKALI,Alkali Metals Limited,MANIPUT INVESTMENTS PVT LTD,SELL,103317,156.09,-
06-NOV-2008,ALKALI,Alkali Metals Limited,MANSUKH SECURITIES & FINANCE LTD,SELL,55972,154.31,-
06-NOV-2008,ALKALI,Alkali Metals Limited,MARWADI SHARES AND FINANCE LIMITED,SELL,191645,148.93,-
06-NOV-2008,ALKALI,Alkali Metals Limited,MLB CAPITAL PVT LTD,SELL,67626,152.57,-
06-NOV-2008,ALKALI,Alkali Metals Limited,OPG SECURITIES PVT. LTD.,SELL,70265,157.59,-
06-NOV-2008,ALKALI,Alkali Metals Limited,PRASHANT JAYANTILAL PATEL,SELL,192680,158.44,-
06-NOV-2008,ALKALI,Alkali Metals Limited,PUJA TAPARIA,SELL,85947,156.02,-
06-NOV-2008,ALKALI,Alkali Metals Limited,R.M. SHARE TRADING PVT LTD,SELL,85925,148.97,-
06-NOV-2008,ALKALI,Alkali Metals Limited,SANJAY BHANWARLAL JAIN,SELL,102831,163.13,-
06-NOV-2008,ALKALI,Alkali Metals Limited,SHAH LALIT V,SELL,55505,158.40,-
06-NOV-2008,ALKALI,Alkali Metals Limited,SMC GLOBAL SECURITIES LTD.,SELL,134709,158.99,-
06-NOV-2008,ALKALI,Alkali Metals Limited,STANDARD SECURITIES & INVESTMENT INTERMEDIATES LIMITED,SELL,58960,156.42,-
06-NOV-2008,ALKALI,Alkali Metals Limited,SUBRAMANIAN SITTRARASU,SELL,51203,161.82,-
06-NOV-2008,ALKALI,Alkali Metals Limited,TRANSGLOBAL SECURITIES LTD.,SELL,186159,159.76,-
06-NOV-2008,ALKALI,Alkali Metals Limited,YUVAK SHARE TRADING PVT LTD,SELL,365695,158.74,-
06-NOV-2008,AUROPHARMA,Aurobindo Pharma Ltd.,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,347000,109.20,-
Inflation thwarts recovery
Weak global cues and unwinding of positions by investors triggered a 485-point fall for the Sensex today. The market mirrored the Asian markets.
Hang Seng, Nikkei and Jakarta Composite slipped 5-7% each. The Sensex resumed on a bearish note at 9,755, which is 365 points below its last close of 10,120 and accumulated losses of 485 points by afternoon on across-the-board selling pressure to touch the day's low of 9,635. However, short covering in index pivotal stocks saw the Sensex erase marginal losses of 120 points towards close and end the session at 9,734, down 386 points. Nifty declined by 102 points to close at 2,893. The highlight of the day was the smart recovery by the indexes in the afternoon session, when the Sensex was within inches of turning positive and Nifty turned green. But higher inflation figures for the week ended October 25, 2008 played spoilsport and the indices ended sharply lower.
The market breadth was heavily tilted in favour of losers as 1,633 stocks declined and 869 stocks advanced. Eighty three stocks remained unchanged. Most of the sectoral indices were battered. The BSE Metal lost heavily and dropped 8.41% followed by BSE Oil & Gas index (down 4.83%), BSE Teck (down 4.71%), BSE IT (down 4.26%), BSE Bankex (down 3.41%) and BSE Auto (down 2.92%). The second-rung benchmark indices the BSE mid-cap index and the BSE small-cap index also slipped over 2% each.
Out of the 30 Sensex stocks only six stocks managed to end in the green. Among the major losers Tata Steel tanked 13.67% at Rs186.25. Tata Motors slumped by 12.17% at Rs159.15, Sterlite Industries shed 11.33% at Rs237.55, Reliance Industries crumbled by 7.71% at Rs1171.55, Hindalco Industries dropped 7.50% at Rs56.70 and Bharti Airtel slipped by 6.62% at Rs639.45. Other front-line stocks also declined by around 1-6% each. However, JP associates bucked the downtrend and advanced by 4.10% at Rs83.80, while Ranbaxy Laboratories, Hindustan Unilever, DLF, Mahindra & Mahindra and Bharat Heavy Electricals inched up marginally.
Over 3.30 crore shares of GVK Power and Infrastructure changed hands on the BSE followed by Suzlon Energy (2.27 crore shares), Reliance Natural Resources (1.39 crore shares), Unitech (1.21 crore shares), IFCI (1.16 crore shares), Reliance Petroleum (1.03 crore shares) and Alkali Metals (1.02 crore shares).
Market crumbles as inflation rises
The market tumbled in a highly volatile trading session as an unexpected increase in inflation shattered hopes of further interest rate cuts by the Reserve Bank of India. Volatility in index heavyweight Reliance Industries (RIL) caused volatility in the key benchmark indices. Weak global markets also weighed on the domestic bourses, as the BSE Sensex plunged 385.79 points or 3.81% to 9,734.22. Most of the sectoral indices on BSE declined
Asian markets, which opened before Indian market, mirrored overnight losses in the US as a fresh batch of dismal economic data underscored the upbeat market mood from Democrat Barack Obama's victory in the US presidential election. Hong Kong's Hang Seng was down 7.7% and Japan's Nikkei plunged 6.5%. Key benchmark indices in China, Singapore, South Korea and Taiwan ended down by 2.44% to 7.56%.
US stocks slumped on Wednesday, 5 November 2008. The Dow Jones industrial average slid 486.01 points, or 5.05%, to 9,139.27. The Standard & Poor's 500 Index plunged 52.98 points, or 5.27%, to close at 952.77. The Nasdaq Composite Index lost 98.48 points, or 5.53% to 1,681.64.
Companies in the US cut an estimated 1,57,000 jobs in October 2008, the most in almost six years, a private report based on payroll data showed on Wednesday, 5 November 2008. Meanwhile, the Institute for Supply Management said the US service sector contracted sharply in October 2008.
The 30-share BSE Sensex fell 385.79 points or 3.81% to 9,734.22. The index fell 484.79 points to 9,635.22 in afternoon trade. It fell 10.56 points at day’s high of 10,109.45 in mid-afternoon trade.
The 50-unit S&P Nifty was down 102.30 points or 3.42% to 2892.65.
The BSE Mid-cap index was down 2.24% to 3,318.41, while the BSE Small-cap index was down 2.13% to 3,880.27.
The market breadth was weak with 1633 shares losing and 869 stocks gaining on BSE. A total of 83 stocks were unchanged.
BSE clocked a turnover of Rs 3841 crore as against Rs 4,983.72 crore on 5 November 2008.
Nifty November 2008 futures were at 2883.30, at a discount of 9.35 points as compared to spot closing of 2892.65. NSE's futures & options (F&O) segment turnover was Rs 43836.07 crore, which was higher than Rs 38550.94 crore on Wednesday, 5 November 2008.
The BSE Oil & Gas index underperformed the Sensex, falling 4.83%. PSU OMCs fell on reports the government may cut petrol prices by around Rs 2 a litre and diesel by Rs 1 per litre to drum up support with voters ahead of key state elections later this month. BPCL, HPCL and Indian Oil Corporation fell by 0.91% to 2.03%
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries extended losses for the second session. The stock fell 7.71% even as the firm denied a newspaper report that it had shut five polyester and petrochemical plants near Mumbai amid falling demand. The stock had tumbled 12.76% in the previous trading session hit by the media report.
Volatility in the stock was immense. The scrip declined 8.7% at the day’s low of Rs 1159 in late trade. The stock declined 2.3% at the day’s high of Rs 1240 in early trade. The stock had tumbled 12.76% in the previous trading session hit by the media report about the plant closure.
Oil exploration and offshore oil services firms fell on fall in global crude oil prices. Cairn India, Aban Offshore, and Shiv Vani Oil fell by 3.85% to 8.19%
India’s largest state-run oil explorer by market capitalisation ONGC fell 1.43% despite reports the French oil major Total is picking up stakes in ONGC Mittal’s Nigerian oil blocks.
Oil fell towards $65 a barrel on Thursday, 6 November 2008, extending its 7% overnight drop caused by weak US economic data and growing US fuel stockpiles.
State-run GAIL India rose 1.15% on reports it may be nominated as the sole agency to sell natural gas from Reliance Industries' eastern offshore KG-D6 block to fuel-starved fertilizer units.
Gains in sector bellwether DLF helped the BSE Realty index outperformed the Sensex. The index rose 0.60%. DLF, India's biggest realty developer by market capitalisation, rose 2.46% even as Morgan Stanley cut price estimate on the stock by 82% to Rs 256. Indiabulls Real Estate (up 3.13%) and Puravankara Projects (up 1.77%), were other gainers from the realty pack.
Stocks from the broader healthcare sector gained on defensive buying. The BSE Healthcare index outperformed the Sensex, rising 0.28%. Ranbaxy Laboratories, Glenmark Pharmaceuticals, Dr Reddy's Laboratories, Lupin, Apollo Hospitals, Glaxosmit Pharmaceuticals, and Biocon rose between 0.04% to 3.72%.
Drug maker Sun Pharmaceuticals Industries rose 1.67% after the company received US Food & Drug Administration approval to market generic version of Sinemet in tablet form in multiple strengths.
Gains in index heavyweight Hindustan Unilever supported the BSE FMCG index. The index outperformed the Sensex, falling merely 0.08%. Hindustan Unilever, which makes daily use products like soaps and detergents, rose 3.05%. It has 29.06% weightage on the BSE FMCG index.
Other FMCG stocks like ITC, United Spirits, Tata Tea, Nestle India, Dabur India, GlaxoSmithkline Consumer Healthcare, United Breweries, and Marico declined by 0.32% to 8.33%.
Heavy electrical equipments maker Bharat Heavy Electricals (Bhel) helped the BSE Capital Goods index outpeforme the Sensex. The index fell 1.02%. Bhel rose 0.52%. The stock has 23.49% weightage on the BSE Capital Goods index. Suzlon Energy (up 2.74%), and Punj Lloyd (up 2.34%), were the other gainers in the pack.
However, stocks like Larsen & Toubro, Crompton Greaves, Siemens, ABB, Areva T&D and Thermax fell by 0.71% to 5.28%
The BSE Consumer Durables outperformed the Sensex, falling 1.90%. This was on the back of strong gains in Gitanjali Gems and Rajesh Exports, which rose 10.21% and 3.36% respectively. Meanwhile, Videocon Industries, Titan Industries, Lloyd Electric and Blue Star fell by 1.16% to 4.92%.
The BSE Power index outperformed the Sensex, falling 2%. GVK Power & Infrastructure rose 9%. Power and allied projects developer GMR Infrastructure rose 3.83% after the company said the group is pursing possibility of acquiring a coal mine in Indonesia.
Meanwhile, Neyveli Lignite, Tata Power and Reliance Infrastructure fell by 2.76% to 5.12%.
The BSE Auto index outperformed the Sensex, falling 2.92%. This was despite the massive fall witnessed by Tata Motors.
Tata Motors, India's largest commercial vehicle maker by sales, tumbled 12.17%, extending losses for the second session, as the firm closed its commercial vehicle plant in Jamshedpur for three days starting today to avoid a build-up of inventory. The stock moved in the range of Rs 154.55 and Rs 175. The stock had declined 6.53% in the previous session, ahead of the announcement.
Commercial vehicles maker Ashok Leyland plunged 9.33% after the company posted 50.2% fall in sales to 3397 units in October 2008 over October 2007.
Banking shares fell in volatile trade on higher inflation and on comments by State Bank of India chief O.P. Bhatt that there is not enough liquidity in the banking system. India's largest commercial bank State Bank of India fell 4.58% after Bhatt said the bank will announce a 75 basis point cut in its prime lending rate later today.
India's largest private sector bank by market capitalisation ICICI Bank fell 3.87%. HDFC Bank and Axis Bank fell 3.10% and 3.51% respectively. The BSE Bankex outperformed the Sensex, falling 3.41%.
Shares of the software exporters fell as American depository receipt (ADR) of Infosys Technologies, Wipro, and Satyam Computer fell between 4.28% to 7.72% overnight. TCS, Infosys Technologies, Wipro and Satyam Computer were down by 1.08% to 6.31%. The BSE IT index underperformed the Sensex, falling 4.26%
World's largest steel maker, ArcelorMittal's poor earnings outlook for the fourth quarter hit metal shares. World’s sixth largest steel maker Tata Steel fell 13.67%. JSW Steel, Steel Authority of India, and Jindal Steel & Power, were down 6.02% to 10.80%.
ArcelorMittal, on Wednesday, 5 November 2008, reported third-quarter net profit below expectations and forecast significantly lower earnings in the fourth quarter. The company also announced a series of measures, including more temporary production cuts and a pause in its growth strategy, in response to the economic slowdown.
India's largest aluminium maker by sales Hindalco Industries slipped 7.50% on reports the company bought $2 billion from the foreign exchange market to part-repay a $3.03 billion bridge loan it took to buy Canadian aluminium can manufacturer, Novelis.
Sterlite Industries India, a leading producer of copper, tumbled 11.33% after parent Vedanta Resources reported 24.73% fall in net profit to $350 million in the half year ended 2008 over the half year ended 2007. The BSE Metal index underperformed the Sensex, falling 8.41%
Reliance Industries clocked the highest turnover of Rs 391.47 crore on BSE. Reliance Capital (Rs 202.90 crore), State Bank of India (Rs 173.15 crore), ICICI Bank (Rs 165.32 crore), and Alkali Metals (Rs 161.38 crore), were the other turnover toppers on BSE in that order.
GVK Power & Infrastructure reported the highest volume of 3.30 crore shaes on BSE. Suzlon Energy (2.27 crore shares), Reliance Natural Resources (1.39 crore shares), Unitech (1.21 crore shares), and IFCI (1.16 crore shares), were the other volume toppers on BSE in that order.
There has been a massive erosion in investors' wealth this year. The barometer index BSE Sensex is down 10551.78 points or 52.01% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 11471.78 points or 54% below its all-time high of 21,206.77 struck on 10 January 2008.
Pre Session Commentary - Nov 6 2008
Today a market is expected to have gap down opening on weak global cues. US markets ended sharply lower and today Asian markets are trading weak. Wednesday, Indian market broke its five-day winning streak and ended in deep red due to the negative European markets and lower US index futures. Investors once again turned towards concern over troubled economy after the US presidential election. Market opened on positive note tracking firm cues from the global markets. Asian markets were higher as Barack Obama elected as the 44th US President, which ended the uncertainty about the leader of US economy during the financial crises. Further, market was not able to hold the same momentum and start losing ground soon after start. During final trading hours market slipped sharply lower to deep red on aggressive selling pressure. From the sectoral front, the Oil & Gas, Metal, Reality, Capital Goods and Power stocks contributed to the most of the selling pressure. While, Pharma stocks were in limelight as most of the buying was witnessed from its baskets. We expect market to trade lower during the trading session. Inflation data for the week ended 25th October 2008, due to be released today will also be a concern for the market.
The BSE Sensex closed lower by 511.11 points at 10,120.01 and NSE Nifty ended down by 147.15 points at 2,994.95. The BSE Mid Caps and Small Caps closed with losses of 51.61 points 3,394.61 and by 70.33 points at 3,964.78. The BSE Sensex touched intraday high of 10,945.41 and intraday low of 10,051.51.
Wednesday, the US markets wiped away the previous days’ gains, which was largest Election Day gain and reported sharp decline. The decline was mainly led by economic concern and profit booking. Private nonfarm employment fell by a larger-than-expected 157,000 in October, according to ADP. Crude oil futures for the December delivery fell $5.23 to $65.3 a barrel on New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) dropped by 486.01 points to close at 9,139.27. The NASDAQ Composite (RIXF) index decreased by 98.48 points to close at 1,681.64 and the S&P 500 (SPX) lost 52.98 points to close at 952.77.
Indian ADRs ended down. In technology sector, Wipro ended lower by (4.28%) along with Infosys lost (7.72%), Patni Computers ended down by (6.25%) and Satyam closed lower by (4.37%). In banking sector ICICI Bank was down by (11.92%) and HDFC Bank lost (10.78%). In telecommunication sector, Tata Communication declined by (13.80%) and MTNL was down by (9.55%). Sterlite Industries decreased by (8.52%).
Today major stock markets in Asia are trading lower. Hang Seng is trading lower by 882.48 points at 13,957.68. Further, Japan''s Nikkei lost 541.06 points at 8,980.18 and Singapore’s Straits Times plunged 87.65 points at 1,781.17. The South Korea’s Seoul Composite lost 78.70 points at 1,102.80 and Taiwan Weighted tumbled 241.47 points at 4,736.79.
The FIIs on Wednesday stood as net seller in equity and in debt. Gross equity purchased stood at Rs1968.30 Crore and gross debt purchased stood at Rs83.10 Crore, while the gross equity sold stood at Rs2061.20 Crore and gross debt sold stood at Rs121.00 Crore. Therefore, the net investment of equity and debt reported were (Rs93.00 Crore) and (Rs38.00 Crore) respectively.
On Wednesday, the Indian rupee ended at 47.46/50 0.5% stronger from 48.69/70 at close on Tuesday on support of dollar sales by exporters. India''s rupee pared its gains after hitting a one-month high, as heavy loss in the local stock market raised concerns of more capital outflows.
Foreign direct investment (FDI) in India increased 259% in September to $2.56 billion, compared to the same month last year, with Mauritius being the largest investor. FDI for the same month last year stood at $713 million. The services sector attracted the highest foreign investment at $2.34 billion.
On BSE, total number of shares traded was 39.16 Crore and total turnover stood at Rs. 4,983.72 Crore. On NSE, total volume of shares traded was 80.756 Crore and total turnover was Rs 13,040.48 Crore.
Top traded volumes on NSE Nifty – Suzlon Energy with total traded volume of 72123210 shares, followed by Unitech Ltd with 29273672 shares, RPL with 22325657 shares, ICICI Bank with 18388708 shares and DLF Ltd with 11793141 shares respectively.
On NSE Future and Options, total numbers of contracts traded in index futures were 949325 with a total turnover of Rs.13,767.86 Crore. Along with this total number of contracts traded in stock futures were 1019103 with a total turnover of Rs.11,294.69 Crore. Total numbers of contracts for index options were 820304 and total turnover was Rs.12,958.26 Crore and total numbers of contracts for stock options were 47870 and notional turnover was Rs.530.12 Crore.
Today, Nifty would have a support at 2,762 and resistance at 2,990 and BSE Sensex has support at 9,522 and resistance at 10,332.
Market may witness another correction
After falling over 500 points yesterday, the market is likely to fall further today on the back of weak global cues. Uncertainty is likely to prevail on lack of fund buying in the domestic market and the trend in the international markets. A fall in Asian indices in the ongoing trades may see the market resume on a weak note and could slip further during intra-day trades on sharp volatility. Among the local indices, the Nifty may slip to 2950 and 2900 while on the upside it could test 3050 to 3100 level. The Sensex has a likely support at 9970 and could test higher levels at 10250.
US indices tumbled sharply on Wednesday, as the Dow Jones slumped by 486 points to close at 9139 and the Nasdaq ended 98 points lower at 1682.
All the Indian ADRs except Rediff, which rose by 0.39%, fell in tune with the broader market. VSNL led the slump and tumbled 13.80% followed by ICICI Bank (down 11.92%), HDFC Bank (down 10.78%), MTNL (down 9.55%) and Tata Motors (down 8.24%) while Infosys, Patni Computers, Satyam, Wipro and Dr Reddy's slipped by over 4-7% each.
Crude oil prices in the international market slipped, with the Nymex light crude oil for December delivery slipped by $5.23 at $65.30 a barrel. In the commodity segment, the Comex gold for Gold series slipped $14.90 to settle at $742.40 an ounce.
Daily Call - Nov 6 2008
Gravity finally caught with the Sensex on Wednesday with Reliance posting its third worst fall in history in percentage terms. The petro-chemical giant, with a weightage of 13.85% in the Sensex, acted as a mill stone around the market’s neck. The Sensex earlier rallied 42% from 7697 to 10945 in the past 7 sessions, making it the fastest fightbacks ever seen in the market’s history for a comparable period.
The US has also followed in India’s footsteps after a weak October job report and poor corporate results sent stocks tumbling. Though the market generally takes the ADC job numbers with a pinch of salt, the fact that their data (job losses) beat the expectations of economists, did the markets in. The Government’s numbers will come in on Friday. Back in India, the local punters who built position in 5 cr. shares in the last few sessions, squared up 90% of their longs, leaving the markets in a limbo. A 50% retracement of the 44% gains in the Nifty from the 2250 low means a target of 2750, which may need to be revised lower to 2631.
"Some cause happiness wherever they go; others whenever they go."
- Oscar Wilde
Trading Calls - Nov 6 2008
Nifty (2995) Sup 2890 Res 3035
Buy Cipla (183)
SL 180 Target 188, 189
Sell Tata Motors (182)
SL 186 Target 175, 173
Sell ICICI Bank (452)
SL 457 Target 445, 443
Sell Maruti (616)
SL 622 Target 604, 602
Sell HDFC Bank (1098)
SL 1120 Target 1060, 1050
Buck stops for bulls!
Focusing your life solely on making a buck shows a certain poverty of ambition. Because it’s only when you hitch your wagon to something larger than yourself that you realize your true potential- Barack Obama.
All said and done, Obama has won. The fact of the matter remains, investors and traders are in the market to make some bucks. That doesn’t seem to come easy for quite some time. Looks like the world markets are following the Indian market, as most global equity benchmarks tumbled on Wednesday amid mounting worries over the fast spreading economic gloom.
The main US indices are down over 5% each as a couple of grim economic reports took some shin off Barack Obama's historic win in the presidential election. Asian markets are down 5-6% this morning, with Shanghai stocks falling to the lowest level since September 2006. One exception was Europe, where the fall was relatively less (2-3%) than in other markets.
Key Indian indices slid by nearly 5% on Wednesday despite a healthy trend in other Asian markets. The sudden and sharp sell-off came after a 2,000 point rally in the Sensex over the previous five sessions.
In fact the fall coincided with Obama’s speech where he said, “Let us remember that if this financial crisis taught us anything, it's that we cannot have a thriving Wall Street while Main Street suffers….”The coincidence may be just incidental as the buzz is that some local operator had gone heavily short on the Nifty around that time. Selling pressure on Reliance by large funds added to the pressure.
Meanwhile, ArcelorMittal announced a steep cut in global production due to falling demand and prices. Back home, Tata Motors said it will shut its Jamshedpur CV plant for three days to align production with dwindling demand. Auto parts makers are also mulling output cuts to tackle the slowdown in demand for new autos.
Shipping companies are in trouble due to a sharp dip in trade for commodities. Several other industries like airlines and real estate are also facing headwinds. Growth in direct tax collection has slipped to 11% in October. Though this may be an aberration, the fact is that the economy is slowing rapidly.
Given this bleak economic background, both globally and locally, stocks are unlikely to rise too much from current levels. There may be some more room on the upside, but there will be selling after every spurt. A sudden and sharp sell-off like Wednesday is not ruled out. Today, we expect another weak opening on the back of the global meltdown. From there on, the trend may turn choppy and will hinge on news flow. Take a break and wait for lower levels to resume your buying.
FIIs were net buyers of Rs2.16bn (provisional) in the cash segment on Wednesday while the local institutions pulled out Rs1.68bn. In the F&O segment, the foreign funds were net buyers at Rs9.12bn. On Tuesday, FIIs were net sellers of Rs930mn in the cash segment.
The euphoria of having elected the first ever African-American president faded fast, with US stocks suffering their biggest post-election slump in history amid lingering worries over the worsening economic situation.
Investors booked profits from the Election Day rally, as another round of bleak economic reports heightened fears of a protracted recession in the wake of the biggest financial crisis since the Great Depression.
The selling began early after a report showed that the US service sector contracted in October, falling at the fastest pace since records began in 1997, and accelerated in the final minutes. Downbeat news on the labor market hit sentiment ahead of Friday's monthly jobs report.
At the close, the Dow Jones Industrial Average was down 486 points, or 5.1%, at 9,139.27. The broader Standard & Poor's 500-stock index declined 52.98 points, or 5.3%, to end at 952.77, erasing yesterday's 4.1% rally.
Financials, materials and consumer discretionary shares fronted the losses in the S&P's 10 industry groups.
The Nasdaq Composite Index shed 98.48 points, or 5.5%, to 1,681.64. The Russell 2000 Index of small US companies fell 5.7% to 514.64. The MSCI World Index of 23 developed markets decreased 2.5% to 982.98.
Market breadth was negative. Volume were exceedingly light, with 1.3bn shares traded on the New York Stock Exchange, where four stocks were on the decline for every one on the rise. On the Nasdaq, 902mn shares traded, and decliners surpassed advancing stocks, by a roughly 10-to-3 margin.
Declines were broad based, with all 30 Dow components falling, led by Bank of America, Citigroup, Intel, Merck and Boeing.
Wall Street analysts said that a potentially deep US recession and a global financial crisis will give Democrat president-elect Barack Obama little time to bask in the glory of his historic win in the US presidential election.
Job cuts announced by US employers rose to 112,884 in October from 95,094 in September, according to outplacement firm Challenger, Gray & Christmas. That marked the highest number of layoffs in almost four years.
In another report on the sensitive jobs market, the ADP index of private employment showed that US companies shed 157,000 jobs in October, with the report seen as a preview of sorts of Friday's non-farm payrolls for the month.
That report is expected to show that employers cut 200,000 jobs from their payrolls in October. Meanwhile, the unemployment rate, which is generated by a separate survey, is expected to rise to 6.3% from 6.1% the previous month.
The Institute for Supply Management reported non-manufacturing sectors of the U.S. economy contracted sharply in October, with its index falling to 44.4% from 50.2% in September.
This week has already brought stark signs of the recession, including dour reports on manufacturing and factory orders, and the worst monthly auto sales in 25 years.
The dollar gained against the euro and fell versus the yen. Gold futures fell, snapping a two-day winning streak, down US $14.9 to close at US $742.40 an ounce.
US light crude oil for December delivery fell US$5.23 to settle at US$65.30 a barrel on the New York Mercantile Exchange. Losses accelerated after the weekly inventories report showed crude stockpiles were unchanged from the previous week.
Gasoline prices fell another 2.6 cents to a national average of US$2.365 a gallon. The decline marks the 49th consecutive day that prices have decreased. During that same time period, prices dropped by US$1.49 a gallon, or 38.6%.
The credit market continued to improve. The 3-month Libor fell to 2.51% from 2.71% Tuesday, hitting its lowest point in almost four years. Overnight Libor fell to 0.32% from 0.38%. Libor is a key interbank lending rate.
The yield on the 3-month Treasury bill, seen as the safest place to put money in the short term, fell to 0.39% from 0.47% Tuesday, with investors preferring to take a small return on their money than risk the stock market. Last month, the 3-month yield reached a 68-year low around 0% as investor panic peaked.
Treasury prices rose modestly, lowering the yield on the benchmark 10-year note to 3.68% from 3.72% Tuesday.
European shares ended their best winning streak of the year on Wednesday. The pan-European Dow Jones Stoxx 600 index declined 2.3% to 228.14, halting a six-session winning streak that had seen it gain 17%. The UK's FTSE 100 index declined 2.3% to 4,534.09, while Germany's DAX 30 index fell 2.1% to 5,166.87 and the French CAC-40 index lost 2% to 3,618.11.
Economists expect the ECB to cut its key rate by 50 basis points, to 3.25%, when the central bank announces its decision later today. The Bank of England's rate-setting Monetary Policy Committee is also likely to cut rates.
In the emerging markets, the Bovespa in Brazil was down 6.1% at 37,785 while the Bolsa in Mexico slumped 5% to 20,446. The RTS index in Russia was, however up 3.4% to 829 and the ISE National 30 index in Turkey plunged 5.3% to 35,612Markets snapped its five days winning streak, as the benchmark Sensex on Wednesday fell over 500 points in a volatile trading session. The fall was led by heavy selling in the oil & gas stocks.
Overnight gains in the US markets and a strong start to equity markets across Asia lifted the Indian bourses with a positive gap. However selling pressure coupled with weak cues from the European markers dragged the markets to end with a deep cut.
The BSE benchmark Sensex lost 511 points or 4.8% to close 10,120 and the NSE Nifty index was down 147 points to close at 2,994.
Among the 30-components of Sensex, 27 stocks were in the negative terrain and 3 stocks ended in the green. Reliance Industries, HDFC, L&T, Bharti Airtel and RCom were among the major laggards. Bucking the negative trend were Wipro Satyam and Maruti.
Shares of DLF declined by 9% to Rs264 after reports stated that Lehman Brothers sold stake in DLF Assets to Symphony Capital Partners. The scrip touched an intra-day high of Rs309 and a low of Rs259 and recorded volumes of over 39,00,000 shares on BSE.
Shares of GMR Infrastructure rallied by over 4.5% to Rs60 following reports that the company was close to acquiring Indonesia-based PT Barasentosa Lestari coal mine for over US$100mn. The scrip touched an intra-day high of Rs66.2 and a low of Rs58 and recorded volumes of over 51,00,000 shares on BSE.
Zen Technologies was frozen at 10% lower circuit at Rs109.3 after the company announced that it would purchase own fully paid equity shares of Rs10/- each at a maximum price of Rs110/- per equity share. The scrip touched an intra-day high of Rs132.3 and a low of Rs109.3 and recorded volumes of over 6,000 shares on BSE.
Himatsingka Seide rose over 3% to Rs27. 5 after reports stated that the company was planning to aggressively enhance its retail presence. The scrip touched an intra-day high of Rs28.5 and a low of Rs27.5 and recorded volumes of over 21,000 shares on BSE.
Shares of IVRCL Infra have rallied by over 20% to Rs146 after the promoters of the company purchased ~29,500 equity shares of the company through open markets in the month October. The scrip has touched an intra-day high of Rs152 and a low of Rs126 and has recorded volumes of over 50,00,000 shares on NSE.
Sugar stocks were in demand after government said that mills will be allowed to export without its prior approval from the government till the end of this year.
"The government has decided to extend the allowance of not requiring release orders for exports under the open general license up to Dec. 31, 2008, or till further orders," the food ministry said in a notification on its Web site.
Sugar exports have come to almost a standstill, S.L. Jain, director general of the Indian Sugar Mills Association, said last month.
Production may drop to 20mn tons in the year ending September 2009, lower than the August forecast of 22mn tons, he said.
The telecom stocks were on the receiving end after reports stated that the government agreed to hike spectrum user charges for all existing telecom operators both using CDMA and GSM technologies.
HDFC-HDFC Bank merger possible says HDFC Chairman Deepak Parekh. (FE)
Reliance Industries may restart polyester units at Patalganga this month. (BS)
Bharti Airtel has sought government approval for buying 65% stake in Bharti Teleports, a newly formed uplinking company. (ET)
Bharti Telesoft, a subsidiary of Bharti Airtel has entered into an alliance with MTN group. (BS)
French oil major, Total is set to acquire stakes in ONGC-Mittal’s Nigerian oil blocks. (ET)
SBI looks at a 40% growth in H2 FY09 net profit. (BS)
GAIL may me nominated as the sole agency to sell natural gas from Reliance Industries KG-D6 field to fertilizer units. (ET)
Tata Motors to shut plant in Jampshedpur for 3 days. (ET)
S&P keeps junk rating – “BB” on Tata Motors. (FE)
RCom is in talks with overseas operators to offer international roaming on its mobile communication network. (DNA)
Bajaj Auto to kick start low cost bikes priced around Rs30,000. (DNA)
Unitech claimed that vested interests of competing forces were creating entry barriers for global telecom majors in Indian markets. (ET)
Sun Pharmaceuticals announced that USFDA has granted approval for ANDA to market generic tablets. (FE)
DLF has no plans to cut its work force. (BL)
Oman Government Fund to pick up 24.5% stake in Ansal Township. (ET)
Omaxe promoters buy 51% stake in NAFIL, housing subsidiary of Omaxe. (ET)
Great Offshore completes acquisition of two Andhra Pradesh based companies KEI-RSOS Maritime Ltd and Rajamahindri Shipping and Oilfield Services Ltd. (BL)
GMR Infra is eyeing a coal mine in Indonesia. (BL)
Toshiba – JSW to set up a plant to manufacture super critical power boilers. (BL)
10 firms are vying for a majority stake in Deccan Charger, IPL team owned Deccan Chronicle group. (BS)
Jet Airways may layoff 100 out of 240 expat pilots. (BS)
NHPC ipo unlikely this fiscal. (FE)
Kalpataru Power Transmission logistic arm plans to set up 41 agri logistic parks across the country. (DNA)
Economic Front Page
Four PSU banks cut PLR by 50-75bps. (BS)
Finance Ministry has asked the telecom department to go ahead with the auction of 3G airwaves even in those zones where radio frequencies are not available. (ET)
CCEA is considering a proposal to allow FIIs to hold stake over and above the sectoral FDI ceilings for Indian companies. (ET)
FDI inflows were at US$2.56bn in September 2008, showing an increase of 259% yoy. (ET)
Direct tax collection grew by 11% yoy to Rs197bn in October 2008. (ET)
Government has authorized CMIE for collecting data for new IIP series. (ET)
DoT may slap curbs on mobile companies’ merger with virtual network operators in the same circle. (BL)
Private sector and foreign banks have assured the government that they will consider a rate cut. (BL)
Fertilizer ministry pushes for gas pacts with suppliers, ask oil ministry to facilitate contracts. (BL)
Airline companies might have to axe 8,000 ground staff, if the government implements new ground handling policy. (BS)
Government is planning to put successful bidders of 3G spectrum in waiting list for issuing spectrum in nine circles. (BS)
Stainless steel importers have opposed import duty levied on alloys saying that the move is aimed at benefiting a single producer. (BS)
The tourism ministry has suggested hoteliers to cut room tariffs by 10-15%. (FE)
Textile ministry seeks government initiatives to avoid layoffs. (FE)
Petroleum ministry expresses inability to direct OMCs to procure ethanol at pre-determined price. (FE)
Bank credit rises by 28% yoy in October. (FE)
Cabinet may approve a new highway toll policy fixing toll rates across the country. (Mint)
Oil ministry is pitching for three oil blocks in Siberia. (Mint)
Areva T&D - SELL
We recommend a sell in Areva T&D India from a short-term trading perspective. It is apparent from the charts of Areva T&D India that it has been on a medium-term downtrend from its September high of Rs 366. The stock commenced its downtrend from a significant resistance level of Rs 360, forming lower troughs and peaks. However, the stock recently found support at around Rs 142 level (a 52-week low) and witnessed a corrective upmove till Rs 200. This upmove retraced 23.6 per cent fibonacci retracement of its prior down leg and encountered twin resistance (key resistance level at Rs 200 and the down trendline). Subsequently, the stock resumed its medium-term downtrend by tumbling 9 per cent accompanied by above average volume on November 5. The daily relative strength index (RSI) has re-entered the bearish zone from the neutral region and the weekly RSI is featuring in this zone. Our short-term forecast for the stock is bearish. We expect the stock’s fall to prolong further until it hits our price target of Rs 158 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 185.
via BL
Asian stocks open in red
Asian stocks declined after News Corp, Isuzu Motors and Cathay Pacific Airways cut their profit outlook, adding to evidence the global economy is headed toward recession.
News Corp. slumped the most since 1990 after tumbling advertising sales led the company to slash its profit forecast. Isuzu, Japan`s largest maker of light-duty trucks, fell after cutting its full-year profit forecast as a stronger yen reduces the value of overseas earnings. Cathay Pacific Airways, Hong Kong`s largest carrier, warned financial results this year will be ``disappointing.`` Panasonic Corp. lost almost 7.5% and Hyundai Motor slipped more than 5.5% on concern slowing US growth will cut demand for televisions, stereos and cars.
Japanese benchmark index Nikkei fell 541.06 points, or 5.68%, to trade at 8,980.18.
Hong Kong`s Hang Seng index declined 886.88 points, or 5.98%, to trade at 13,953.28.
China`s Shanghai Composite dropped 45.27 points, or 2.57%, to trade at 1,715.34.
Taiwan`s Taiex index slid 254.50 points, or 5.11%, to trade at 4,723.76.
South Korea`s Kospi index slipped 67.55 points, or 5.72%, to trade at 1,113.95.
Singapore`s Straits Times decreased 78.84 points, or 4.22%, to trade at 1,789.98. (8.01 a.m., IST).
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