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Wednesday, December 10, 2008
BSE Bulk Deals to Watch - Dec 10 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
10/12/2008 533029 ALKALI KHATRI ENTERPRISE B 60628 153.31
10/12/2008 533029 ALKALI MANSUKH STOCK BROKERS LTD B 54978 137.83
10/12/2008 533029 ALKALI MANSUKH STOCK BROKERS LTD S 54978 138.68
10/12/2008 532870 ANKIT METAL LOTUS GLOBAL INVESTMENTS LIMITED B 500000 16.74
10/12/2008 532870 ANKIT METAL ANAND YOGESH SHARES AND CONSULTANCY PVT LTD S 210245 16.75
10/12/2008 532823 EURO CERAMIC PRATIK K. SHAH B 150000 37.22
10/12/2008 511034 JINDA DRI IN ODD AND EVEN TRADES AND FINANCE PVT. LTD S 140000 236.29
10/12/2008 512559 KOHINORFOODS TEMPTATION FOODS LIMITED B 300000 77.00
10/12/2008 526045 LUMINAI TECH ROBOSOFT TRADING CO. P LTD. S 192000 3.67
10/12/2008 590077 RANKLIN SOLU JYOTHI G S 27200 54.36
10/12/2008 531646 RFL INTERNAT UNIVERSAL CREDIT S 180000 1.06
10/12/2008 526407 RIT PRO IND BHANWAR LAL MOHATTA S 46926 14.65
NSE Bulk Deals to Watch - Dec 10 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
10-DEC-2008,ALKALI,Alkali Metals Limited,MBL & COMPANY LTD.,BUY,53415,144.59,-
10-DEC-2008,GOLDTECH,Goldstone Tech Ltd.,YUVAK SHARE TRADING PVT LTD,BUY,109937,25.29,-
10-DEC-2008,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,BUY,2194604,98.41,-
10-DEC-2008,INDOTECH,Indo Tech Transformers Li,PAI P.S.,BUY,56105,286.09,-
10-DEC-2008,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,BUY,350000,14.52,-
10-DEC-2008,KSERAPRO,K Sera Sera Productions L,DIMPALBHAI J. LIMBOD,BUY,423729,14.37,-
10-DEC-2008,NITINFIRE,Nitin Fire Protection Ind,HARSHA MUKUND SHETH,BUY,110611,136.27,-
10-DEC-2008,VINDHYATEL,Vindhya Telelinks Ltd.,ANTRIKSH VYAPAAR PVT LTD,BUY,143900,57.89,-
10-DEC-2008,ALKALI,Alkali Metals Limited,MBL & COMPANY LTD.,SELL,53415,145.05,-
10-DEC-2008,GOLDTECH,Goldstone Tech Ltd.,YUVAK SHARE TRADING PVT LTD,SELL,125454,25.51,-
10-DEC-2008,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,SELL,2194604,98.46,-
10-DEC-2008,HDIL,Housing Development and I,KMUK A/C SANSTONE CAPITAL INDIA MASTER FUND LTD,SELL,1510286,99.53,-
10-DEC-2008,IVRCLINFRA,IVRCL Infra & Proj Ltd,FUNDAMENTAL INVESTORS INC,SELL,1320000,142.32,-
10-DEC-2008,KSERAPRO,K Sera Sera Productions L,DIMPALBHAI J. LIMBOD,SELL,423729,14.44,-
10-DEC-2008,NITINFIRE,Nitin Fire Protection Ind,HARSHA MUKUND SHETH,SELL,2048,139.39,-
10-DEC-2008,VINDHYATEL,Vindhya Telelinks Ltd.,SHEETAL R MEHTA,SELL,80000,59.00,-
Post Session Commentary - Dec 10 2008
The domestic market continued its rally for the second successive session and ended the day with decent gains supported by firm Asian markets. The Bull Run was triggered on the news that a tentative deal was reached on a plan to save the hammered US auto industry along with on hopes that governments all over the world will help out ailing industries by implementing the stimulus measures. White House and congressional Democrats on 9th December 2008 reached an agreement in principle on a $15 billion proposal for bailing out US automakers. Along with this in domestic arena, government is expected to pump additional spending over the next four months of the current fiscal ended March 2009 to bring back the confidence of the investors into the market.
The Indian market opened significantly higher tracking positive cues from the Asian markets. Further, market continued its northward journey on strong buying over the counters. Other Asian markets also gained further ground following the fall in dollar and hopes that the policymakers will provide a helping hand to key sectors. Finally, market concluded the day with huge gains on constant strong buying especially during final trading. From the sectoral front, traders on-loaded positions across the sectors. Reality stocks outperformed the benchmark indices as ended with gain of more than 12% on government’s announcement of a stimulus plan to enhance the sector, including a refinance facility for National Housing Bank and priority sector status for housing loan up to Rs.20,00,000. Cement stocks were in demand on hopes of price cut that will boost demand. Apart from that, most of the buying was seen in Metal, Oil & Gas, Capital Goods, Teck, Auto, Power and Bank stocks. Midcap and Smallcap stocks were also in buyers’ radar.
Among the Sensex pack 29 stocks ended in green territory and 1 in red. The market breadth was positive as 1530 stocks closed in green while 876 stocks closed in red and 121 stocks remained unchanged.
The BSE Sensex closed higher by 492.28 points at 9,654.90 and NSE Nifty ended up by 144.25 points at 2,928.25. The BSE Mid Caps and Small Caps ended with gains of 63.21 points and 52.25 points at 2,948.24 and 3,395.45 respectively. The BSE Sensex touched intraday high of 9,678.70 and intraday low of 9,280.16.
Gainers from the BSE Sensex pack are DLF Ltd (18.93%), Mahindra & Mahindra Ltd (15.47%), Grasim Industries (13.66%), Tata Steel (10.92%), Reliance Communication Ltd (10.24%), ACC Ltd (9.92%), Wipro Ltd (9.80%), Reliance (9.57%), JP Associates (8.96%), Sterlite Industries (8.82%), Reliance Infra (8.70%), ICICI Bank (8.15%) and HDFC (7.47%).
Only one loser from the BSE Sensex pack is Ranbaxy Lab (1.08%).
The BSE Reality index ended up by (12.56%) or 223.72 points at 2,005.09. Major gainers are DLF Ltd (18.93%), Housing Dev (13.43%), Indiabull Real (10.62%), Pheonix Mill (7.78%), Unitech Ltd (6.54%) and Orbit Co (5.86%).
The BSE Metal index ended higher by (8.38%) or 400.70 points at 5,181.92 as Steel Authority (15.77%), Tata Steel (10.92%), Jai Corp Ltd (9.28%), Jindal Steel (9.14%), JSW Steel (9.09%) and Sterlite Industries (8.82%) ended in positive territory.
The BSE Oil & Gas index surged (6.97%) or 384.87 points to close at 5,906.46 as Reliance (9.57%), Aban Offshore (9.00%), Gail India (7.33%), Essar Oil Ltd (6.54%) and Cairn Ind (5.26%) ended in green.
The BSE Capital Goods index advanced by (4.51%) or 294.75 points to close at 6,824.14. Main gainers are Usha Martin (16.27%), Crompton Greaves (10.97%), Suzlon Energy (9.15%), Gammon Indi (6.90%), Thermax Ltd (5.96%) and BEML Ltd (5.76%).
The BSE Teck index went up by (4.31%) or 84.90 points to close at 2,053.28. Main gainers are Dish TV (16.21%), Tata Communication Ltd (13.77%), Reliance Communication Ltd (10.24%), Tel eighteen (9.88%), Wipro Ltd (9.80%) and Zee Ent (7.76%.
The BSE Auto index ended higher by (4.16%) or 94.14 points at 2,375.42. Gainers are Excorts Ltd (15.87%), Mahindra & Mahindra Ltd (15.47%), Tata Motors (7.30%), Bajaj Auto (5.20%), Bosch Ltd (4.55%) and Exide Industries (3.68%).
Buoyancy afloat
The north-bound trend remained intact for the second straight session, with the Sensex registering smart gains on buying in heavyweights and other sectoral stocks. After opening with sharp gains of over 153 points over its last close at 9,316, the Sensex remained in the green and rallied past 9,650 to touch an intra-day high of 9,679 in early trades. However, the initial upsurge failed to gather momentum, as the index pared gains and later slowed down on lack of further buying interest. The Sensex ended the session with gains of 492 points at 9,655. The Nifty gained 144 points to close at 2,928.
The market breadth was positive. Of the 2,527 stocks traded on the BSE, 1,530 stocks advanced, whereas 876 stocks declined. Hundred and twenty one stocks ended unchanged. On sectoral front, BSE Realty surged 12.56% followed by BSE Metal (up 8.38%), BSE Oil & Gas (up 6.97%) and BSE CG (up 4.51%). The remaining indices ended with gains of 0.79% to 4% each.
Among the gainers in heavyweights, DLF advanced 18.93% at Rs262.65, Mahindra & Mahindra rose 15.47% at Rs286.65, Grasim Industries flared up 13.66% at Rs1,098.50, Tata Steel scaled up 10.92% at Rs217.40, Reliance Communications added 10.24% at Rs228.25, ACC jumped 9.92% at Rs476.40 and Wipro gained 9.80% at Rs261.65. Only Ranbaxy dropped (1.08% at Rs210.75) for the day.
Over 3.21 crore shares of Unitech changed hands on the BSE followed by Suzlon Energy (2.04 crore shares), HDIL (1.47 crore shares), GVK Power & Infrastructure (1.46 crore shares) and DLF (1.14 crore shares).
Realty, metal, oil & gas stocks lead 5.3% Sensex surge
Frenzied buying in index pivotals on speculation US lawmakers will approve a $15 billion bailout of American auto companies, boosted the domestic bourses today, 10 December 2008. The BSE 30-share Sensex surged 492.28 points or 5.37% All the BSE sectoral indices logged gains.
Buying by foreign institutional investors (FIIs) led today's rally. As per the provisional data released by the stock exchanges after trading hours, FIIs bought shares worth a net Rs 950.65 crore today, 10 December 2008. Domestic funds sold shares worth a net Rs 59.01 crore.
The market witnessed a bout of volatility. After a firm opening triggered by the news that a tentative deal was reached on a plan to rescue the battered US auto industry, the Sensex pared gains in mid-morning trade on slide in India's biggest state-run bank in terms of assets, State Bank of India, and auto shares. The market surged in early afternoon trade as Asian shares extended gains.
After a surge of close to 400 points or 4.36%, in afternoon trade, the market came off the higher level on a likely subdued start of European markets. The market spurted later.
Asian stocks surged on hopes governments worldwide will bail out ailing industries and increase spending as they fight back against a deepening economic crisis. China's Shanghai Composite index rose 2.03%, reversing early losses. Key benchmark indices in Hong Kong, Japan, Singapore, South Korea and Taiwan were up by between 3.62% and 5.59%, extending earlier gains. Earlier in the day, the key indices in these five Asian countries were up by 0.95% and 3.41%.
Governments worldwide are looking to spend their way out of sharply slowing economic growth via various stimulus measures, while expectations are rising they will also step in to help sectors and companies in trouble. As per reports, the White House and congressional Democrats late on Tuesday, 9 December 2008, reached an agreement in principle on a $15 billion proposal for bailing out US automakers.
Trading in US index futures indicated the Dow could rise 110 points at the opening bell.
But European markets were subdued. Key benchmark indices in UK and France declined 0.24% and 0.10% respectively. However, Germany's DAX index rose 0.10% on a better-than-anticipated report on investor confidence in Germany, the largest eurozone economy.
The BSE 30-share Sensex surged 492.28 points or 5.37% to 9,654.90. At the day's high of 9,678.70, the Sensex gained 516.08 points in late trade. The Sensex rose 117.54 points at the day's low of 9,280.16 in early trade.
The S&P CNX Nifty advanced 144.25 points or 5.18% to 2928.25. Nifty December 2008 futures were at 2934.95, a premium of 6.70 points as compared to the spot closing.
The barometer index BSE Sensex is down 10632.09 points or 52.40% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 11551.87 points or 54.47% below its all-time high of 21,206.77 struck on 10 January 2008.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1539 shares advanced as compared with 888 that declined. 113 shares remained unchanged. The BSE Mid-Cap index (up 2.19% to 2,948.24) and the BSE Small-Cap index (up 1.56% to 3,395.45), though up, underperformed the Sensex.
The total turnover on the BSE amounted to Rs 4169 crore as compared with Rs 3,243.32 crore on Monday, 8 December 2008. Turnover in NSE's futures & options (F&O) segment surged to Rs 43,597.57 crore from Rs 39,051.16 crore on Monday, 8 December 2008.
All the sectoral indices rose. The BSE Realty index (up 12.56% to 2,005.09), the BSE Metal index (up 8.38% to 5,181.92), and BSE Oil & Gas index (up 6.97% to 5,906.46), outperformed the Sensex.
The BSE Consumer Durables index (up 2.01% to 1,739.10), the BSE Teck index (up 4.31% to 2,053.28), the BSE IT index (up 2.89% to 2,454.98), the BSE Auto index (up 4.16% to 2,375.42), the BSE HealthCare index (up 1.04% to 2,850.81), the BSE Capital Goods index (up 4.51% to 6,824.14), the BSE Power index (up 4.02% to 1,762.53), the BSE FMCG index (up 0.79% to 1,950.49), the Bankex (up 3.58% to 4,959.29) and the BSE PSU index (up 2.42% to 4,748.00), underperformed the Sensex.
Jaiprakash Associates (up 9.40% to Rs 75.10), HDFC (up 8.85% to Rs 1645), and Hindustan Unilever (up 1.20% to Rs 244.70), edged higher from the Sensex pack.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) jumped 9.29% to Rs 1224 on high volumes of 33.16 lakh shares on hopes stimulus packages around the world would revive demand for its petroleum and petrochemical products. RIL's refining margins comfortably beat most of its global peers, and is seen as well placed to tap any revival in demand.
India's largest oil exploration firm by market capitalisation Oil & Natural Gas Corporation (ONGC) climbed 1.60% to Rs 670 after the government reportedly permitted its overseas arm ONGC Videsh (OVL) to make a formal offer for acquiring 100% equity in UK-listed Imperial Energy for 1.4 billion pounds despite sharp slide in crude oil prices.
Ranbaxy Laboratories was the lone loser from the 30-member Sensex pack. India's top pharma company by sales lost 1.01% to Rs 210.90 after brokerage Reliance Money maintained its sell rating on the stock with a target price of Rs 177 in its report dated 10 December 2008 stating that foreign exchange fluctuation could continue to dent the company's performance through hedging as well as translation losses.
Wockhardt rose 4.40% to Rs 100.80 on reports it is in talks with private equity funds to divest a 15% stake at a huge premium over the ruling market price.
Real estate shares extended Monday's (8 December 2008) gains after the Reserve Bank of India (RBI) on Saturday, 6 December 2008, announced several measures, including a refinance facility for the National Housing Bank and priority sector status for housing loans up to Rs 20 lakh, in a bid to revive housing demand.
India's top real estate developer by market capitalisation DLF galloped 21.85% to Rs 269.10 on huge volumes of 1.14 crore shares and was the top gainer from the Sensex pack. The stock had surged 8.71% on Monday, 8 December 2008.
Unitech (up 6.39% to Rs 34.70), Sobha Developers (up 2.98% to Rs 97), and Housing Development Infrastructure (up 10.63% to Rs 98.85), rose.
Cement shares surged on hopes price cut will boost demand. Grasim (up 14.35% to Rs 1105), ACC (up 10.75% to Rs 480), Ambuja Cements (up 11.21% to Rs 64.50), and Shree Cement (up 8.33% to Rs 390.25) advanced.
Major cement manufacturers, including ACC, Ambuja Cements and Shree Cement announced price cuts by up to Rs 7 per 50 kilogram bag in response to the government's move on Sunday, 7 December 2008, to reduce excise duty by 4% across the board, as a part of a fiscal stimulus package for the economy. The cement companies have, however, not passed on the entire benefit of excise duty cut due to hike in railway freight by about 8%.
Capital goods heavyweights rose on hopes the government's thrust on the infrastructure sector, will boost orders. India's largest power equipment maker by sales Bharat Heavy Electricals gained 3.68% to Rs 1412. India's largest engineering & construction company by sales Larsen & Toubro rose 5.38% to Rs 780
Elecon Engineering Company rose 4.31% to Rs 32.70 after Prayas Engineering, a promoter, has acquired 44,500 shares or 0.05% of the equity capital of the company through open market, Elecon Engineering Company said in a filing to the BSE. The company made this announcement before trading hours today, 10 December 2008.
The government hopes to precipitate infrastructure projects worth Rs 100,000 crore through faster clearances of public-private partnership projects, and ensure their easier financing by way of a tax break on fund raising by the India Infrastructure Finance Company, a specialist lender to the infrastructure sector.
IT pivotals rose reports of government-led support in Asia for sectors such as technology. India's second largest IT exporter by sales Infosys rose 1.20% to Rs 1171.10. India's third largest IT exporter by sales Satyam Computer Services climbed up 5.34% to Rs 235.60. India's fourth largest IT exporter by sales Wipro jumped 10.45% to Rs 263.20. India's largest IT exporter by sales Tata Consultancy Services gained 2.88% to Rs 537.45.
In Taiwan, struggling memory chip maker ProMOS has reportedly asked for government assistance.
IT stocks shrugged off a firmer rupee. A stronger rupee affects operating margins of IT firms negatively as they earn most of their revenues from exports. The rupee was trading firm at 48.98/49 per dollar, higher than its previous close of 49.58/59 as gains in Asian share markets eased concerns about an outflow of foreign funds from the market.
Metal stocks advanced, boosted by a surge in metal prices on the London Metal Exchange. Sterlite Industries (up 9.38% to Rs 273.50), Hindalco Industries (up 6.02% to Rs 53.75), Tata Steel (up 13.27% to Rs 222), Nalco (up 6.26% to Rs 195.10), Steel Authority of India (up 16.21% to Rs 79.95), soared.
Telecom shares were in demand on reports the finance ministry has reportedly allowed state-owned India Infrastructure Finance Company to lend money to telecom firms to bid for licences for the third generation (3G) spectrum auction early next year. Reliance Communications (up 11.52% to Rs 230.90), Bharti Airtel (up 4.95% to Rs 735.50), and Idea Cellular (up 3.83% to Rs 52.80), advanced.
Banks shares vaulted on hopes lower interest rates will spur lending growth. ICICI Bank (up 8.42% to Rs 400.95), HDFC Bank (up 2.99% to Rs 924.85), rose.
India's top state-run bank by total assets State Bank of India rose 1.86% to Rs 1190 after swing wildly in a range of Rs 1197.60 - Rs 1150.05 in the day.
LKP Finance was locked at 5% upper limit at Rs 55.05 after its board of directors scheduled a meet on 15 December 2008 to consider buy back of shares. The company announced the board meet during trading hours today, 10 December 2008.
The RBI, on 6 December 2008, announced a 100-basis point cut in the repo rate and the reverse repo rate each. Repo rate is the rate at which RBI lends to commercial banks and reverse repo rate is the rate at which RBI accepts deposits from banks. The RBI also announced steps to improve liquidity and shore up economic activity.
Auto shares reversed early losses on hopes the recent price cuts will revive demand. India's top truck maker by sales Tata Motors gained 10.53% to Rs 168, recovering from an early low of Rs 146.30 caused by a brokerage downgrade. Reliance Money put a sell rating on stock with a target of Rs 120 in its latest research report dated 8 December 2008 citing weak demand and fall in overall sales volume
India's top tractor maker by sales Mahindra & Mahindra (M&M) galloped 16.82% to Rs 290, off day's low of Rs 242.50.
India's top small car maker by sales Maruti Suzuki India gained 4.72% to Rs 522.90 after sliding to a low of Rs 485.65. The company cut prices of all 11 car models following an across-the-board 4% reduction in excise duty announced by the government on Sunday, 7 December 2008.
Most auto firms have cut prices after the government on Sunday cut excise duties in a bid to pump-prime the economy.
Power generation stocks gained as the government has decided to eliminate the import duty on naphtha used for power generation. Tata Power Company (up 6.20% to Rs 729.80), Reliance Infrastructure (up 9.24% to Rs 605) and NTPC (up 1.29% to Rs 168.55), rose.
Naphtha is used as a fuel in power sector generation. The elimination of import duty will bring down the price of naphtha which would in turn reduce the cost of power generated from naphtha. This will help the power producers to bring down the tariff of power that they sell to transmission companies. Currently, naphtha attracts a customs duty of 5%.
State-run oil marketing companies (OMCs), though up, underperformed the Sensex, as crude oil bounced back. HPCL (up 1.63% to Rs 227.10), BPCL (up 3.33% to Rs 337), and IOC (up 1.30% to Rs 386.40), rose.
State-run oil firms suffer revenue losses on domestic sale of petrol, diesel, LPG and kerosene at a controlled price. US crude for January 2009 delivery was up $1.21 at $43.28 a barrel today, 10 December 2008 on bargain hunting.
Shipping stocks advanced tracking the Baltic Dry Index, which rose for second day rebounding from a 22-year low. GE Shipping (up 13.77% to Rs 166.05), Mercator Lines (up 19.91% to Rs 27.70), and Shipping Corporation of India (up 5.88% to Rs 72), surged. The Baltic Dy Index represents daily average of prices to shipping raw materials.
Among the side counters, Andhra Cements (up 20% to Rs 18.72), Kisan Mouldings (up 20% to Rs 16.50), Modern Dairies (up 20% to Rs 14.31), Aurobindo Dairies (up 19.91% to Rs 140.60), and Gwalior Chemicals (up 19.90% to Rs 46.40), surged.
Redington (down 14.78% to Rs 102.05), CCAP (down 13.21% to Rs 12.35), Softpro Systems (down 11.65% to Rs 91), Kirloskar Electronics (down 10.68% to Rs 62.75), and Enkei Castalloys (down 10.58% to Rs 18.60), bucked the trend
Reliance Industries topped the turnover chart on BSE with a turnover of Rs 395 crore followed by DLF (Rs 282.40 crore), SBI (Rs 182 crore), Tata Steel (Rs 159 crore) and ICICI Bank (Rs 158.40 crore).
Unitech led the volume chart on BSE clocking volumes of 3.21 crore shares followed by Suzlon (2.05 crore shares), Housing Development Infrastructure (1.47 crore shares), GVK Power Infrastructure (1.47 crore shares) and DLF (1.14 crore shares).
Meanwhile, the global economic slowdown has impacted the Indian manufacturing sector, which has cut output in the last few months and this trend is expected to continue in coming months, according to a survey by industry body Federation of Indian Chambers of Commerce and Industry (Ficci). The survey found that the manufacturing slowdown is likely to continue till March 2009, which might result in job losses.
Dec 10 2008 Morning Commentary
Today markets are likely to open positive due to the feel good factor after the stimulus package announced on Sunday. However the risk aversion and cautious trading may trap the markets in volatility. There are also news that the Indian BPO industry which is estimated to be worth $11 billion may cut 2.5 lakh jobs in the first half of 2009, if the government doesn’t come out with a bailout package for the industry. The other sectors like realty are also under pressure due to fall in demand and high interest rates. Therefore the overall sentiments in the markets are not that strong enough to bring firmness. One could anticipate some volatility in the markets throughout the trading session.
On Monday, the markets opened with a positive gap and managed to retain firmness till the end. The government stimulus package worth Rs 30,700 crore and other host of reforms in the form of Repo and Reverse Repo cut by 100bps to 6.5% and 5% respectively has helped regain some charm in the sentiments of the markets. Sectors like Auto and Banking are benefited the most and investors are optimistic about some revamp happening in the demand for loans and automobiles. Sensex and Nifty gained by 2.20% and 2.56%. Realty, Metal, CD, Power and Banking gained 5.27%, 3.05%, 2.78%, 2.78% and 1.71% respectively. During the trading session we expect the market to be trading volatile.
The BSE Sensex closed with a gain of 197.42 points at 9,162.62 and NSE Nifty ended higher by 69.60 points at 2,784.00. The BSE Mid Caps ended with a marginal loss of 7.92 points at 2,885.03, whereas Small Caps ended with gains of 19.66 points at 3,343.20. The BSE Sensex touched intraday high of 9,432.11 and intraday low of 9,095.70.
On Tuesday, the US markets closed negative due to risk aversion. Companies like Texas instruments and Fedex have given downside earnings estimate. On the macro economic level pending home sales fell in October by 0.07%, better than expected fall of 3.0%. On the other hand Auto makers were on the limelight as the White House is working out towards a financial aid agreement. Crude oil on New York Mercantile Exchange for January fell by $1.64 cents to $42.07 a barrel. Crude oil fell after the U.S. Department of Energy predicted a $51.17 per barrel average for 2009.
The Dow Jones Industrial Average (DJIA) closed lower with 242.85 points at 8,691.33 NASDAQ index lost 24.40 points at 1,547.34 and the S&P 500 (SPX) also closed lower by 21.03 points to close at 888.67 points.
Indian ADRs ended mixed. In technology sector, Infosys lost by 3.71% and Wipro ended high by 2.15% followed by Satyam that lost 1.62% and Patni Computers closing low by 1.22%. In banking sector ICICI Bank lost 3.33%, while HDFC Bank fell by 4.35%. In telecommunication sector, Tata Communication inclined by 3.18%, while MTNL declined by 1.65%.
Today the major stock markets in Asia opened mixed. The Shanghai Composite is trading low by 31.83 at 2,005.91 Hang Seng is high by 329.56 points at 15,082.78. Further Japan''s Nikkei is high by 95.68 points at 8,491.55. South Korea’s Seoul Composite is high by 31.90 points at 1,137.74.
The FIIs on Monday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 1,182.10 Crore and gross debt purchased stood at Rs 151.90 Crore, while the gross equity sold stood at Rs 1,130.90 Crore and gross debt sold stood at Rs 315.70 Crore. Therefore, the net investment of equity and debt reported were Rs 51.20 Crore and Rs (163.80) Crore respectively.
On Monday, the partially convertible rupee ended at 49.58/59 per dollar as against 49.57/58 on Friday last week. The rupee remained flat today little changed from the previous day.
On BSE, total number of shares traded was Rs 24.70 Crore and total turnover stood at Rs 3,243.32 Crore. On NSE, total volume of shares traded was Rs 58.34 Crore and total turnover was Rs 9,418.98 Crore.
Top traded volumes on NSE Nifty – Unitech with 74370515 shares, Suzlon Energy with total volume traded 32557379 shares, followed by DLF with 20190887 shares, SAIL with 17677935 shares and Tata Steel with 16184726 shares.
On NSE Future and Options, total number of contracts traded in index futures was 988891 with a total turnover of Rs 12,949.04 Crore. Along with this total number of contracts traded in stock futures were 864948 with a total turnover of Rs 9,008.09 Crore. Total numbers of contracts for index options were 1137017 with a total turnover of Rs 16,423.50 Crore and total numbers of contracts for stock options were 59516 and notional turnover was Rs 670.54 Crore.
Today, Nifty would have a support at 2,715 and resistance at 2,843 and BSE Sensex has support at 8,950 and resistance at 9,328.
US Market falters again
Postponement of share buyback plan by WalMart stall the recovery effort
Stocks at Wall Street ended with substantial losses on Tuesday, 09 December. Wall Street started the day in the red. Dow was down by more than 150 points at one point but thereafter it was able to trim its losses. At the end, losses increased and even Nasdaq which was managing to eke out gains earlier, ended in the red. Earnings warning came from Fed Ex and Texas Instruments. Pending home sales in October dropped less than expected. Crude is trading more than a dollar lower around $43 today.
On Wall Street, the Dow Jones industrial average closed down 242 points at 8,691, the Nasdaq closed down by 24 points at 1,547 and the S&P 500 moved down 21 points at 888. Nasdaq had earlier risen by almost 25 points.
All the ten sectors ended in the red today led by the financial sector. JP Morgan led the pack of Dow laggards.
Stocks were in the red right out of the gate today after Federal Express was down 14% today after reducing its fiscal year 2009 earnings guidance and capital spending forecast due to weaker-than-expected economic conditions. The weakness in Fed Ex, which is considered as a parameter for overall economy was the main reason to impart negative momentum in the market since morning.
Though indices were trimming their losses during mid day, the same once again plunged after a government filing released toward the end of the session said that WalMart is suspending its share repurchase program due to the current economic environment and the instability of the credit markets. Wal-Mart said it had about $5 billion remaining in its $15 billion program. Selling intensified after the report.
The National Association of Realtors reported on Tuesday, 09 December, 2008 that October pending home sales fell 0.7% month-over-month, which was better than the expected decline of 3%. September was revised to a drop of 4.3% from a decline of 4.6%.
The index, which is considered a leading indicator of existing home sales, was down 1% from the prior year. Pending home sales in October were mixed regionally, with declines of 8.7% in the West, and 4.3% in the Midwest.
Texas Instruments gave downside earnings or revenue guidance taking the number of semiconductor companies issuing cautious guidance to six.
On Tuesday, crude-oil futures for light sweet crude for January delivery closed at $42.07/barrel (lower by $1.64 or 3.7%) on the New York Mercantile Exchange. It touched a low of $41.83 during intra day trading. Prices reached a high of $147 on 11 July but have dropped almost 74% since then. On 5 Dec, 2008, prices touched a low of $40.5. Last week, prices coughed up 25%. That was the largest weekly loss for crude in past twenty five years. For this year in 2008, crude prices have dropped 52%.
EIA reported today in its monthly short-term energy outlook that the current global economic slowdown is now projected to be more severe and longer than it expected last month, leading to further reductions of global energy demand and additional declines in oil and other energy prices. The EIA is now expecting world GDP growth to slow to 0.5% in 2009, down from an expectation of 1.8% in last month's outlook.
The weekly crude inventory report and the November Treasury Budget are the main economic reports scheduled tomorrow.
Market seen range-bound on mixed global cues
Key benchmark indices may see ranged activity and try to catch up with its global peers as it reopens after remaining shut on Tuesday, 9 December 2008 for Bakri Eid festial. Global cues were mixed with Asian markets rising today and those of the US declining overnight. The SGX November 2008 Nifty futures was up 68 points.
Meanwhile, the global economic slowdown has impacted the Indian manufacturing sector, which has cut output in the last few months and this trend is expected to continue in coming months, according to a survey by industry body Federation of Indian Chambers of Commerce and Industry (Ficci). The survey found that the manufacturing slow down is likely to continue till March 2009, which might result in job losses.
Asian markets were trading higher today, 10 December 2008, extending gains for the fourth straight day on optimism that stimulus plans will boost the global economy. China's Shanghai Composite rose 1.02% or 20.88 points at 2,058.62, Hong Kong's Hang Seng gained 2.34% or 345.71 points at 15,098.93, Japan's Nikkei advanced 1.14% or 95.68 points at 8,491.55, Singapore's Straits Times was up 0.73% or 12.73 points at 1,767.31, South Korea's Seoul Composite surged 2.79% or 30.87 points at 1,136.71 and Taiwan's Taiwan Weighted added 2.31% or 103.26 points at 4,575.92.
US markets declined on Tuesday, 9 December 2008 as profit warnings from FedEx Corp and others prompted investors to retrench after two days of big gains, while unprecedented demand for the safety of government securities signaled that fear remains a dominant force in the market.
The Dow plunged 242.85 points, or 2.72%, to 8,691.33. The S&P 500 index declined 21.03 points, or 2.31%, to 888.67. The Nasdaq Composite index fell 24.40 points, or 1.55%, to 1,547.34.
Back home, doubts as to how much stimulus the already stretched government budget will be able to finance, curtailed early gains on Monday, 8 December 2008. The BSE 30-share Sensex rose 197.42 points or 2.2% to 9,162.62 and the S&P CNX Nifty gained 69.60 points or 2.56% at 2784, on that day.
Foreign institutional investors (FIIs) were net buyers worth Rs 350.34 crore while mutual funds sold shares worth Rs 617.05 crore on Monday, 8 December 2008, according to provisional data on NSE.
US crude for January 2009 delivery rose $1.26 at $43.33 a barrel today, 10 December 2008 on bargain hunting
Trading Calls - Dec 10 2008
Nifty (2784) Sup 2725 Res 2850
Buy Wipro (238) SL 233 Target 248, 250
Buy Tata Steel (196) SL 192 Target 204, 206
Buy BHEL (1362) SL 1340 Target 1402, 1412
Sell IVRCL (135) SL 138 Target 129, 127
Daily News Roundup - Dec 10 2008
HDFC Bank has cut its benchmark prime lending rate by 50bps. (ET)
ONGC Videsh will go ahead with its planed US$2.1bn purchase of Imperial Energy and will meet the deadline for making an open offer to shareholders of the UK firm. (ET)
RPL’s Jamnagar refinery to go on-stream by March 2009, but is likely to start producing some products by next month. (FE)
Fire broke out at RPL's under-construction refinery at Jamnagar in Gujarat. (BS)
Walt Disney and UTV Motion Pictures have inked a deal, whereby UTV will handle the sales and distribution of all the Walt Disney’s Hollywood releases in India from January 1, 2009. (ET)
Jet Airways has agreed to pay 3% commission to agents on the gross fare. (ET)
Indian Oil and Adani Energy Ltd entered into a MoU for setting up 50:50 city gas distribution joint venture. (BL)
Kalpataru Power Transmission Ltd won a gas pipeline contract from GAIL valued at Rs2.4bn. (BL)
Binani Cement has no plans to reduce cement prices post 4% excise duty cut. (ET)
Dalmia Cement Bharat plans to cut cement prices by Rs5-6 per bag from next week. (ET)
Jet Airways has leased out five aircrafts to foreign carriers. (FE)
RNRL has criticized the Government for fixing the selling price of gas from Reliance Industries’ KG basin at US$4.2 per mmbtu. (ET)
The government awarded start-up spectrum to two telecom operators Unitech and Idea Cellular in Kolkata to enable them start operations. (BS)
US drug major Eli Lilly has sued Sun Pharma over Cymbalta patent. (FE)
Unitech plans to invest Rs25bn to develop 35 hotels over the next seven years. (ET)
ACC and Ambuja Cements have slashed cement prices by Rs4-6 per 50kg bag. (ET)
GVK-BHP Billiton to invest US$400mn in 7 oil blocks in the exploratory face. (BL)
MTNL to launch 3G services tomorrow. (BL)
Gas production from RIL’s KG D6 fields is expected to be further delayed due to inclement weather condition. (FE)
Suzlon’s REpower to supply wind turbines for projects in northeast France and US state of Oregon. (BS)
RCom, Bharat Forge and United Phosphorous among others are finalizing plans to buy-back their FCCBs. (ET)
Wockhardt is in talks to raise US$100mn for clearing FCCB dues. (ET)
Nagarjuna Construction has been asked to pay a penalty to RBI and then seek a fresh permission from FIPB to offload an additional 3.5% stake to Blackstone. (ET)
Financial Technologies acquires 60% stake in Bourse Africa. (DNA)
DLF plans to build office complex in IT SEZ space in Delhi. (DNA)
Tata Coffee in talks with Russian company to set up a Joint venture deal is likely to be finalized in three months. (DNA)
Maytas Infrastructure bags a contract worth Rs1.8bn. (DNA)
Nissan-Ashok Leyland to delay India truck output. (FE)
Hindustan Motors to cut prices of its ambassador car model by Rs10,000-14,500. (FE)
Hero Honda and Bajaj Auto to cut rates of their vehicles. (BS)
Essar Oil to re-open petrol pumps next month. (DNA)
Gabriel India to sack up to 150 employees at its Parwanoo plant in Himachal Pradesh. (BS)
SpiceJet is looking at re-structuring its core leadership team. (BS)
The price for the sale of natural gas by RIL from the D6 Block in the Krishna Godavari Basin will remain unchanged despite the steep fall in global crude oil prices. (BL)
Tata Teleservices has partnered with Nokia Siemens Networks and Huawei Technologies from rolling out 60mn GSM lines under separate five-year contracts valued at ~US$3.5bn. (ET)
LIC plans to invest Rs150bn in debt offerings over the next four months and Rs120bn in stock market before the end of current fiscal. (ET)
Pivet Finance, an investment arm of industrialist Analjit Singh, has picked up ~1% stake in East India Hotels for Rs450mn. (ET)
JK Tyres and Apollo Tyres have slashed their product prices to pass on the 4% excise duty cut benefit to customers. (FE)
Many MNC-local JVs – Nissan-Ashok Leyland, Hero-Daimler and Eicher-Volvo projects may get delayed due to cut in production of commercial vehicles by many players. (ET)
ICRA has assigned the highest credit rating to Rs20bn bond issue of NTPC. (FE)
J Kumar Infra projects has bagged orders wroth ~Rs5.6bn from MMRDA and MSRDC for skywalk projects. (FE)
Max India to consider rights issue. (FE)
The Government has awarded start-up spectrum to Unitech and Idea Cellular. (FE)
SBI Life Insurance may infuse ~Rs5bn in its insurance business in 2009 and consider public listing in H2 FY10. (ET)
Sun Direct has launched its DTH services in Mumbai with a starting price of Rs299 for four months, which is lower by ~50-60% than other service providers. (ET)
Merrill Lynch has sold its ~5% stake in Religare Enterprises for an undisclosed sum. (ET)
Leading automakers have passed on the benefit of 4% cut in excise duty to customers by reducing prices by 3-3.5%. (ET)
Indian auto companies are likely to take a hit of Rs10bn on unsold vehicles post 4% excise duty cut. (ET)
Cognizant wins US$100mn US contract. (ET)
Smart start, stay cautious
Be slow to form convictions, but once formed they must be defended against the heaviest odds.
After a stimulating start on Monday, the bulls failed to hold on to their gains. We expect something similar today. Though US markets ended in the red, the Indian indices could be off to a smart start. The Asian cues are positive for the time being. Use the gains to lighten and shuffle your positions as the gains could get pared unless global markets boost local sentiment. Conviction, however, continues to evade the market players.
Asian stocks rose for a fourth day as optimism that stimulus plans will boost the global economy lifted commodity producers and automakers. The auto bailout bill in the US is still pending, which probably hurt Wall Street.
The World Bank say Global gross domestic product is likely to increase by 0.9% in 2009, the weakest rate since 1970. The US economy remains a sore point and as some traders point out people have run out of reasons to initiate some buying. Canada, declared itself in recession on Tuesday. In Asia, Japan’s economy sank deeper into recession in Q3. The MSCI Asia Pacific Index has fallen 47% this year.
FIIs were net buyers in Index Future by Rs925cr with increase in open interest by 27,983 contracts (6.2%). In Single Stock Future, they have gone short to the tune of Rs171cr with increase in open interest by 31,186 contracts (3.5%). In the Index Option segment, they were net sellers by Rs340cr. FIIs were net sellers in cash segment by Rs350cr (Provisional). DIIs were net sellers in cash segment by Rs617cr (Provisional).
The Dow Jones fell 240 points or 2.7%. The Standard & Poor's 500 (SPX) index lost 2.3% and the Nasdaq composite fell 1.6%.
U.S. light crude oil for January delivery fell $1.64 to end at $42.07 a barrel.
Suzlon could see some weakness on downgrades by a foreign brokerage.
MTNL could add some weight as it is set to launch 3G services.
Automakers say they have passed on the benefit of 4% cut in excise duty to customers by reducing prices by 3-3.5%. This however is unlikely to trigger accelerated sales. Reports say auto companies are likely to take a hit of Rs10bn on unsold vehicles post 4% excise duty cut.
Construction companies should have some news to cheer with the Government approving 21 highway projects worth ~Rs283bn to be executed in the form of government-private partnership.
India Infrastructure Finance Company Ltd (IIFCL) says it will raise another Rs100bn through tax-free bonds to refinance bank loans to infrastructure projects by March.
The real estate companies’ woes could continue with reports that the government may restrict state-owned banks to offer interest rates to 7-8% on housing loans up to Rs2mn.
SEBI has allowed companies to issue non-convertible debentures along with warrants – which can be converted into shares to Qualified Institutional Buyers.
Cement companies could be hurt on the bourses too today. While fuel rates may have gone down on the road, Indian Railways has hiked the freight rates for cement, coal and coke by up to 8% per ton.
To boost the tourism sector growth, the Government is considering proposals like abolition of the 12.5% service tax on tour packages, reduction in development charges for adding more rooms in the existing hotels and convincing the states to have a 4% uniform luxury tax across the country.
The BSE benchmark index witnessed wild swings on Monday, erasing early gains on the back of profit booking. Further on, with Tuesday being a holiday, traders exited their long positions. The Sensex finally ended adding 197 points, at 9,162, and the NSE Nifty index gained 69 points to close at 2,787.
Shares of Karuturi Global surged higher after the company announced that it concluded a new contract for supply of 50mn roses, an increase of 28% over 36mn roses supplied in the previous year, from Edeka, one of the largest super markets network in Germany.
This order comes at an increased price ranging from 20% to 33% above that of the price received this year. This order will be executed through its various production facilities.
The stock rose over 4.8% to Rs11.7 and touched an intra-day high of Rs11.8 and a low of Rs11.4 and recorded volumes of over 6,00,000 shares on BSE.
RPL gained by over 3% to Rs74.5 after reports stated that the company may commission its new refinery by March and may start producing some products by next month. The scrip touched an intra-day high of Rs78 and a low of Rs73 and recorded volumes of over 72,00,000 shares on BSE.
Dr Reddy's Labs gained by 1.2% to Rs481 after reports stated that the company is considering settling Sanofi-Aventis dispute out of court.
Also reports stated that the company remains in litigation for two patents in the US, while one patent has been dismissed from the case. The scrip touched an intra-day high of Rs492 and a low of Rs477 and recorded volumes of over 17,000 shares on BSE.
Shares of J Kumar ended flat at Rs66.4. The company announced that it received a confirmation of order to construct 16 Skywalk's from Mumbai Metropolitan Regulatory Development Authority (MMRDA) & Maharashtra State Road Development Corporation (MSRDC) out of which J Kumar lnfraprojects Ltd has received work order for Rs5.59.40bn. The scrip touched an intra-day high of Rs74 and a low of Rs66 and has recorded volumes of over 3,00,000 shares on BSE.
YES Bank
We recommend a buy in Yes Bank stock from a shortterm trading perspective. It is evident from the charts of Yes Bank that it was in a medium-term downtrend from its early September peak of Rs 149 to its 52-week low of Rs 55 recorded in late October.
During this downtrend, the stock broke through the significant support level at 100 in early October. However, the stock took support at its 52-week low (Rs 55) twice in late November and early December and reversed direction.
The stock has a significant long-term support level in the band between Rs 55 and Rs 62. On December 4, the stock jumped by 11 per cent, penetrating its medium-term down trendline. We notice above average volume over the past three trading sessions, strengthening the new uptrend. The weekly relative strength index (RSI) is displaying positive divergence and daily RSI is rising in the neutral region.
We are bullish on the stock from a short-term perspective. We expect the ongoing up move of the stock to prolong until it hits our price target of Rs 77 in the forthcoming trading sessions. Traders with short-t
Precious metals end mixed
Gold rises but silver drops as dollar weakens
With a weak dollar, gold prices once again rose today, Tuesday, 09 December, 2008. Gold rose due to the falling dollar but silver fell. 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 and also vice versa. Gold also registered first weekly drop last week in last five weeks.
On Tuesday, Comex Gold for February delivery rose $4.9 (0.6%) to close at $774.2 an ounce on the New York Mercantile Exchange. Earlier in the day, it reached a high of $780.7. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (26%) since then. Last week, gold prices ended lower by 8.2%.
For the month of November, gold prices ended higher by 14%. Prior to this, for the month of October, gold had ended lower by 18%. It was the biggest percentage loss for gold since February, 1983.
This year, gold prices have lost 7.8% till date. Futures have averaged $878 in 2008. The dollar index has gained 11% 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 12 cents (1.2%) to $9.85 an ounce. Last week, silver lost 7.7%. For the month of November, silver prices had gained 5%. Till date, silver has lost 34.2% this year.
For the month of October, silver had slipped by 20%. 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.
At the currency market on Tuesday, the dollar fell sharply against the Japanese yen, but was mixed against other major currencies. Dollar weakness typically boosts dollar-denominated commodities such as gold. The dollar index, which tracks the performance of the greenback against a trade-weighted basket of six major currencies gained 0.3%.
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. In the latest move, the Federal Reserve has cuts its target bank lending rate to 1% from 5.25% in September, 2007. The Fed did it in eight steps.
It was reported today that gold production in South Africa fell by 14% year-on-year in October. The country's total mining production, however, rose by 3.5% year-on-year in October, with non-gold output rising 6.5%.
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%.
Crude drops
Prices shed more than $1 after yesterday's rally
After rallying yesterday, crude prices slipped lower once again on Tuesday, 09 December, 2008. Prices fell due to a couple of factors. First was the fact that traders anticipated that tomorrow's weekly inventory report will show build up in crude inventories. Next, crude also fell on chances of OPEC going for a production cut to restore crude prices in its next meeting.
On Tuesday, crude-oil futures for light sweet crude for January delivery closed at $42.07/barrel (lower by $1.64 or 3.7%) on the New York Mercantile Exchange. It touched a low of $41.83 during intra day trading. Prices reached a high of $147 on 11 July but have dropped almost 74% since then. On 5 Dec, 2008, prices touched a low of $40.5. Last week, prices coughed up 25%. That was the largest weekly loss for crude in past twenty five years. For this year in 2008, crude prices have dropped 52%.
For the month of November, crude prices ended lower by 19.7%. Before this, for the month of October, 2008, crude prices had ended lower by 32.6%, the biggest monthly drop since 1983.
EIA reported today in its monthly short-term energy outlook that the current global economic slowdown is now projected to be more severe and longer than it expected last month, leading to further reductions of global energy demand and additional declines in oil and other energy prices. The EIA is now expecting world GDP growth to slow to 0.5% in 2009, down from an expectation of 1.8% in last month's outlook.
At the currency market on Tuesday, the dollar fell sharply against the Japanese yen, but was mixed against other major currencies. Dollar weakness typically boosts dollar-denominated commodities such as gold. The dollar index, which tracks the performance of the greenback against a trade-weighted basket of six major currencies gained 0.3%.
The Organization of Petroleum Exporting Countries ended meeting in Cairo last month without any decision on a production cut to restore crude prices. OPEC President and Algerian Oil Minister Chakib Khelil said he expects oil demand to decline from a month ago, and said the group would take necessary action on 17 December when it meets in Oran, Algeria.
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, January reformulated gasoline fell 2 cents to end at 94 cents a gallon and January heating oil dropped 5 cents to end at $1.44 a gallon.
Natural-gas futures for January delivery edged up 1 cent to finish at $5.58 per million British thermal units.
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