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Thursday, December 11, 2008
Rakesh Jhunjhunwala - Mother of all bull runs
“India will see the mother of all bull runs in the next four or five years, boosted by double-digit economic growth and increased investment by domestic investors, including pension and insurance funds,” Jhunjhunwala, 48, said as he smoked a Cohiba Cuban cigar in an interview at the South Mumbai office of his company, Rare Enterprises, a name that combines Ra from Rakesh and Re from Rekha, his wife.
“Indians as a society are not going to be bogged down by these terror attacks; the nation’s tolerance, skill set and democracy will prevail,” said Jhunjhunwala, whose office is a two-minute walk from the Oberoi hotel, one of the locations where terrorists killed 163 people in about 60 hours. He was stuck in the office all night with seven employees, eating Nestle SA’s Maggi noodles and popcorn.
“We will see a period of great uncertainty but great potential too,” Jhunjhunwala said. He’s holding on to investments including Titan Industries Ltd., India’s largest watchmaker, which fell 47 percent this year, and Aptech Ltd., a computer training company that lost 84 percent.
“The malaise of the West isn’t a problem India is facing; we don’t have overextended banking systems or overextended credit,” Jhunjhunwala said. “The basis of India’s economic growth has far deeper roots than many other countries.”
via Bloomberg
BSE Bulk Deals to Watch - Dec 11 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
11/12/2008 511501 BHARAT BHUSH INTEGRATED FINANCIAL SERVICES LTD B 30000 8.75
11/12/2008 511501 BHARAT BHUSH SUBHASH CHANDER KHANEJA S 30000 8.75
11/12/2008 502587 RAMA PUL PAP ELLKAY DEVELOPERS PRIVATE LTD B 60000 4.85
11/12/2008 502587 RAMA PUL PAP MUKESH KUMAR SINGHAL S 60000 4.85
11/12/2008 532299 TEL EIGHTEEN PASSPORT INDIA INVESTMENTS MAURITIUS LTD B 1122502 80.00
11/12/2008 532299 TEL EIGHTEEN INDIA EQUITY GROWTH FUND LIMITED S 1122502 80.00
11/12/2008 505196 TIL LIMITED WARD FERRY MANAGEMENT LTD AC WF INDIA RECONNAISSANCE FUND LTD B 348039 122.00
11/12/2008 505196 TIL LIMITED MORGAN STANLEY MAURITIUS COMPANY LIMITED S 361323 122.01
NSE Bulk Deals to Watch - Dec 11 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
11-DEC-2008,ALKALI,Alkali Metals Limited,MBL & COMPANY LTD.,BUY,55250,154.07,-
11-DEC-2008,ARVIND,Arvind Limited,IDREAM HOLDINGS PVT.LTD,BUY,1123666,15.29,-
11-DEC-2008,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,BUY,2980320,104.88,-
11-DEC-2008,MLL,Mercator Lines Limited,TRANSGLOBAL SECURITIES LTD.,BUY,1310177,31.94,-
11-DEC-2008,ORBITCORP,Orbit Corporation Limited,BLACKSTONE ASIA ADVISORSLLC A/CASIA OPP OFFSHORE MASTER FUND,BUY,183500,53.92,-
11-DEC-2008,UNITECH,Unitech Ltd,TOTAL SECURITIES LIMITED,BUY,8196216,35.09,-
11-DEC-2008,ALKALI,Alkali Metals Limited,MBL & COMPANY LTD.,SELL,55250,154.51,-
11-DEC-2008,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,SELL,2980320,104.93,-
11-DEC-2008,INDOTECH,Indo Tech Transformers Li,HDFC ASSET MANAGEMENT COMPANT LTD,SELL,70000,286.97,-
11-DEC-2008,MLL,Mercator Lines Limited,TRANSGLOBAL SECURITIES LTD.,SELL,1291922,32.11,-
11-DEC-2008,UNITECH,Unitech Ltd,TOTAL SECURITIES LIMITED,SELL,8243916,35.10,-
Post Session Commentary - Dec 11 2008
The domestic market ended with marginal losses after showing some recovery, on selling pressure led by weak global cues. Investors’ ignored further decline in inflation to 8% for the week ended 29th November 2008, and took calculative steps on concern of weakening domestic and global economy. Negative European markets also fueled to the negative sentiments. According to RBI’s governor D Subbarao, the next two years would be very critical for the country. On 10th December 2008, he indicated that RBI''s projection of 7.5% to 8% economic growth for the current fiscal year may be revised downwards when RBI reviews the annual policy for 2008-09 in January 2009.
The Indian market belled the day marginally higher but tuned choppy soon after start. Further, market continued to trade with volatility throughout of the session ahead of IIP data for the October 2008, due to be released on 12th December. The market tried to recuperate during afternoon session on as stocks recovered in Japan on hopes of aggressive rate cuts and government actions around the world to limit the depth of global recession. The benchmark indices fell further as selling pressure intensified in some of the front liners that led market to close in red territory. From the sectoral front most of the selling pressure was led by IT, Consumer Durables, Teck, Pharma and PSU stocks. However Reality, Oil & Gas, Metal, Bank and Auto stocks were able to gain market favor. Midcap and Smallcap stocks were also on buyer’s radar.
The State owned banks are planning to cut rates on small ticket home loans up to 300 basis points as RBI considers ways to help the banking sector to make small home loans at cheaper rate and is also looking at the option of relaxing norms for this.
Inflation for the week ended 29th November 2008, stood at 8% as compared to 8.4% of the previous week. It was 3.89% during the corresponding week last year. Inflation rate for primary articles, which has a weight of 22% in the index number fell to 11.66% in the reported week as compared to 11.98% in the previous week.
Among the Sensex pack 18 stocks ended in red territory and 12 in green. The market breadth was positive as 1557 stocks closed in green while 911 stocks closed in red and 97 stocks remained unchanged.
The BSE Sensex closed marginally lower by 9.44 points at 9,645.46 and NSE Nifty ended slightly down by 8.10 points at 2,920.15. The BSE Mid Caps and Small Caps ended with gains of 54.84 points and 48.14 points at 3,003.08 and 3,443.59 respectively. The BSE Sensex touched intraday high of 9,746.01 and intraday low of 9,441.97.
Losers from the BSE Sensex pack are TCS Ltd (6.24%), Satyam Computer (5.18%), Wipro Ltd (4.45%), Hindalco (4.38%), Infosys Tech (3.23%), BHEL (2.75%), DLF Ltd (2.28%), ONGC Ltd (1.77%), Tata Motors (1.56%) and Grasim Industries (1.42%).
Gainers from the BSE Sensex pack are JP Associates (10.63%), Sterlite Industries (8.43%), Reliance Communication Ltd (4.80%), ACC Ltd (2.81%), Reliance (2.58%), ICICI Bank (1.58%), Bharti Airtel (0.89%), SBI (0.75%) and Reliance Infra (0.41%).
The BSE IT index ended down (3.90%) or 95.78 points at 2,359.20. Losers are TCS Ltd (6.24%), Satyam Computer (5.18%), Financ Tech (4.74%), Wipro Ltd (4.45%), Tech Mahindra (3.28%) and Infosys Tech (3.23%).
The BSE Consumer Durables index dropped by (2.62%) or 45.65 points to close at 1,693.45. Main losers are Gitanjali GE (8.77%), Titan Ind (4.98%) and Videocon Ind (0.25%).
The BSE Teck index ended down by (1.38%) or 28.35 points at 2,024.93 as TCS Ltd (6.24%), Satyam Computer (5.18%), Financ Tech (4.74%), Wipro Ltd (4.45%), Infosys Tech (3.23%) and Infosys Tech (3.13%) ended in red.
The BSE Reality index ended up by (2.12%) or 42.49 points at 2,047.58. Major gainers are Anant Raj (19.95%), Indiabull Real (10.77%), Penland Ltd (8.08%), Pheonix Mill (6.67%), Sobha Dev (4.91%) and Orbit Co (4.47%).
The BSE Oil & Gas index surged (1.67%) or 98.53 points to close at 6,004.99 as Reliance Natural Resources (25.93%), Reliance Petroleum (8.74%), Aban Offshore (8.03%), Essar Oil Ltd (7.49%) and Reliance (2.58%) ended in green.
The BSE Metal index ended higher by (1.37%) or 71.19 points at 5,253.11 as Sterlite Industries (8.43%), Welspan Gujarat SR (5.61%), Sesa Goa Ltd (2.22%), Jai Corp Ltd (2.19%) and Ispat Industries (1.36%) ended in positive territory.
Nitin fires all cyclinders
Nitin Fire Protection Industries was locked at 20% upper limit at Rs 167.15 at 15:24 IST on BSE, as one of the promoters raised stake in the company.
The company announced the increase in promoters' stake during trading hours today, 11 December 2008.
Meanwhile, the BSE Sensex was down 21.57 points, or 0.22%, to 9,633.33.
On BSE, 31,254 shares were traded in the counter. The stock had an average daily volume of 16,676 shares in the past one quarter.
The stock hit a high of Rs 167.15 and a low of Rs 140.10 so far during the day. The stock hit a 52-week high of Rs 666.90 on 4 January 2008 and a 52-week low of Rs 121.10 on 27 October 2008.
The small-cap stock had underperformed the market over the past one month till 10 December 2008, declining 12.03% as compared to the Sensex's decline of 8.36%. It had also underperformed the market in the past one quarter, declining 55.68% as compared to the Sensex's decline of 34.15%.
The company's current equity is Rs 12.60 crore. Face value per share is Rs 10.
The current price of Rs 167.15 discounts the company's Q2 September 2008 annualized EPS of Rs 18.48, by a PE multiple of 9.04.
Nitin M Shah, a promoter, has increased his stake to 19.47% in the company after acquiring 20,000 shares on 10 December 2008 through open market purchases. The total promoter holding in the company stood at 69.42% as on 30 September 2008.
Nitin Fire Protection Industries' net profit surged 98.6% to Rs 5.82 crore on 157.3% increase in net sales to Rs 31.65 crore in Q2 September 2008 over Q2 September 2007.
Mumbai-based Nitin Fire Protection Industries is a leading end-to-end solution provider for fire protection, safety and security with capabilities in manufacturing, designing, engineering, commissioning and maintenance.
Small-cap, mid-cap indices outperform Sensex
Hopes that the central bank may cut rates further and reports that the government is likely to come out with a second fiscal stimulus for the economy helped the key benchmark indices bounce back in the last one hour of trade. The recovery materialized after the market had weakened in mid-afternoon trade and the rebound helped the market end with tiny losses. The BSE 30-share Sensex slipped 9.44 points or 0.10% to 9,645.46, recovering 203.49 points from the day's low. Recovery in US index futures also aided rebound on the domestic bourses in late trade
The market breadth, indicating the overall health of the market, was strong, as data showing further fall in inflation raised hopes of further cuts in interest rates by the central bank. Inflation based on the wholesale price index rose 8% in the year through 29 November 2008, lower than previous week's annual rise of 8.4%, data released by the government today, 11 December 2008, showed. Lower rates may help revive the domestic economy, which has been witnessing a slowdown.
Commerce Minister Kamal Nath today, 11 December 2008, said the government will consider another financial assistance package next week aimed at generating employment and ensuring that the credit needs of the companies are met.
The second stimulus package assumes significance as the World Bank in its report yesterday, 10 December 2008 expressed fears of a deeper and prolonged slowdown which may pull down the global economic growth to less than 1% in 2009. Also many of the developed nations like the US, Japan and some countries in the Eurozone are already in recession and India is witnessing the ripple effects of the global slowdown.
The RBI governor D Subbarao on Wednesday, 10 December 2008, indicated that RBI's forecast of a between 7.5% to 8% economic growth for the current fiscal year may be revised downwards. He also said that the fiscal year 2009-10 will be tougher.
Subbarao today said the RBI will continue to closely monitor the developments in the global and domestic financial markets and will take swift and effective action as and when needed. He said the central bank would endeavour to minimise the stress on various sectors of the economy which have been hurt by the global economic crisis.
India's infrastructure sector output rose 3.4% in October 2008 from a year earlier, below a downwardly revised 4.8% annual growth in September 2008, data released by the government today, 11 December 2008, showed. The infrastructure sector accounts for 26.68% of India's industrial output.
The stock market was volatile. After initial gains triggered by an upmove in bank shares, the market soon slipped into the red on concerns over the weakening global economy and uncertainty about the fate of the beleaguered US automakers. The market cut losses later as stocks recovered in Japan. After moving into positive zone from negative zone in early afternoon trade, the market slipped into the red again later. The market extended losses in afternoon trade.
The market weakened further in mid-afternoon trade as European markets dropped in early trade and on lower US index futures. The market staged a comeback in late trade helped by recovery in index heavyweight Reliance Industries (RIL) in the last one hour of trade. The BSE Sensex swung 304.04 points between the day's high and low.
European stocks dropped on renewed concerns over the health of the global economy and on uncertainties surrounding Washington's auto rescue plan. Key benchmark indices in UK, Germany and France were down by between 0.56% and 1.21%.
The House of Representatives on Wednesday approved a bailout legislation that would force US automakers to restructure or fail. However, prospects for passage of the legislation in the US Senate appears grim, reports suggest. Trading in US futures indicated the Dow could rise 35 points at the opening bell. The US index futures reversed early losses.
Recent economic data continues to highlight the extent of that global slowdown. China's exports shrank unexpectedly in November 2008, while industrial output in several European economies sank, according to data on Wednesday, 10 December 2008.
The Confederation of British Industry's monthly poll showed that the UK factory orders balance improved slightly to 'minus 35' in December 2008 from 'minus 38' in November 2008, but that remains indicative of a strong decline in manufacturing.
The Asian Development Bank today, 11 December 2008, said growth in developing nations in the Asian region is seen slowing to an eight-year low of 5.8% in 2009, joining the chorus of increasingly pessimistic calls made from brokerages to international bodies.
The US recession will tighten its grip next year as unemployment rises and weak home and stock prices imperil consumers, finance firms and debt-laden businesses, a UCLA Anderson Forecast report released on Thursday, 11 December 2008 said. Additionally, a sustained retreat in prices for goods and services is a very real possibility that would further drag on the economy, according to the forecasting unit's report.
Corporate news has added to worries about global growth. Major companies worldwide such as Rio Tinto are announcing steep job cuts as they seek ways to cope with a crisis of a magnitude not seen in decades.
Stocks moved into the green from red in Japan on hopes aggressive rate cuts and government actions around the world to revive economic growth could limit the depth of a global recession. The Nikkei 225 average was up 0.70%. South Korea's KOSPI gained 0.75% after the central bank cut its key interest rate by an unprecedented 100 basis points to a record low 3%, double the reduction that analysts had forecast. Hong Kong's Hang Seng index, too, reversed early losses and was up 0.23%. However, other Asian markets from China, Taiwan, and Singapore, were down by between 0.07% and 2.28%.
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. US President-elect Barack Obama announced large infrastructure investment plans last weekend.
The Swiss National Bank today slashed interest rates by 50 basis points, in a bid to save Switzerland's economy from a deeper recession.
The BSE 30-share Sensex slipped 9.44 points or 0.10% to 9,645.46. At the day's high of 9,746.01, the Sensex gained 91.11 points in early trade. The Sensex lost 212.93 points at the day's low of 9,441.97 in mid-afternoon trade.
The S&P CNX Nifty fell 8.10 points at 2,920.15. Nifty December 2008 futures were at 2925.55, at a premium of 5.40 points as compared to the spot closing.
A fiscal stimulus package by the government and cut in interest rates by the Reserve Bank of India (RBI) helped the market stage a rebound this month. The BSE Sensex advanced 562.18 points or 6.18% to 9654.90 on 10 December 2008 from 9092.72 on 28 November 2008. Foreign institutional investors (FIIs) have turned buyers this month. FII inflow in December 2008 totaled Rs 1715.40 crore (till 10 December 2008). As per the provisional data released by the stock exchanges after trading hours, FIIs today, 11 December 2008, bought shares worth a net Rs 444.18 crore.
But the barometer index is still down 10641.53 points or 52.45% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 11561.31 points or 54.51% 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 with 1576 shares advancing as compared with 914 that declined. 92 shares remained unchanged.
The BSE Mid-Cap index (up 1.86% to 3,003.08), and BSE Small-Cap index (up 1.42% to 3,443.59), outperformed the Sensex.
The total turnover on the BSE amounted to Rs 4626 crore as compared to Rs 4,638.42 crore on Wednesday, 10 December 2008. Turnover in NSE's futures & options (F&O) segment was Rs 38,606.17 crore, lower than Rs 43,597.57 crore on Wednesday, 10 December 2008.
The BSE Realty index (up 2.12%), the BSE Auto index (up 0.09%), the Bankex (up 0.89%), the BSE Metal index (up 1.37%), BSE Oil & Gas index (up 1.67%), outperformed the Sensex.
The BSE Consumer Durables index (down 2.62%), the BSE Teck index (down 1.38%), the BSE IT index (down 3.90%), the BSE HealthCare index (down 1.13%), the BSE Capital Goods index (down 0.20%), the BSE Power index (down 0.38%), the BSE FMCG index (down 0.31%), and the BSE PSU index (down 0.57%), underperformed the Sensex.
Among the 30-member Sensex pack, 20 declined while the rest advanced. Hindalco (down 4.01% to Rs 51.50), Grasim (down 2.05% to Rs 1076), and Hindustan Unilever (down 1.88% to Rs 240.50), edged lower from the Sensex pack.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) advanced 5.04% to Rs 1289, rebounding sharply from low of Rs 1192.05 hit in mid-afternoon trade, following reports the government has withdrawn an affidavit filed in the Bombay High Court wherein it had asserted that RIL cannot sell its Krishna-Godavari basin gas to anyone without its approval to the pricing formula. In its affidavit filed last month, the government had also said that RIL could not sell KG basin gas at a price less than $4.20 per million British Thermal Units.
Other Mukesh Ambani group companies - Reliance Petroleum (up 10.16% to Rs 81.50), Reliance Industrial Infrastructure (up 4.01% to Rs 383), also surged.
The withdrawal came following insistence by Anil Dhirubhai Ambani Group (ADAG) firm Reliance Natural Resources (RNRL)'s counsel Ram Jethmalani to cross-examine the government on the issue. RNRL galloped 31.92% to Rs 57.45 on massive volumes of 3.32 crore shares. While the government approved price of gas for KG basin is $4.20 per million British Thermal Units (mBTU), RNRL is seeking the gas at $2.34 mBTU.
Other ADAG firms - Reliance Capital (up 6.71% to Rs 497.30), Reliance Power (up 5.18% to Rs 118.85) rose. India's top private sector power generation firm by sales Reliance Infrastructure was down 0.30% to Rs 600.25, recovering from a low of Rs 580.
India's top dam builder by sales Jaiprakash Associates galloped 10.96% to Rs 83 on high volumes of 1.63 crore shares on momentum buying after its contract in derivative segment saw a build up of 10 lakh shares in open interest with the total reaching to 1.37 crore shares on Wednesday, 10 December 2008. It was the top gainer from the Sensex pack.
India's top copper producer by sales Sterlite Industries (India) jumped 9.52% to Rs 298 boosted by a 12.2% surge in ADR on Wednesday, 10 December 2008.
India's second largest cellular services provider by sales Reliance Communications jumped 5.52% to Rs 240.85 on reports that strategic investors, including telecom groups from the US and Europe, are in talks with the company to acquire around 20-26% stake
Banking shares rose on expectations of a further rate cut to ease liquidity after inflation declined further in the week ended 29 November 2008. India's top private sector bank by net profit ICICI Bank gained 2.29% to Rs 409.10 as its American depository receipt (ADR) jumped 8.68%.
State Bank of India (up 0.91% to Rs 1200), Bank of India (up 5.09% to Rs 263), Kotak Mahindra Bank (up 4.71% to Rs 380.15), gained.
But India's second largest private sector bank by net profit HDFC Bank fell 1.17% to Rs 914.
Outsourcing firms slumped on fears a weak global economy would cut the amount firms spent on technology. India's largest IT exporter by sales Tata Consultancy Services lost 6.55% to Rs 506 and was the top loser from the Sensex pack
India's third largest IT exporter by sales Satyam Computer Services plunged 5.58% to Rs 223.10 despite its ADR gaining 0.49%
India's second largest IT exporter by sales Infosys slipped 3.32% to Rs 1135 even as its ADR rose 0.56% on Wednesday, 10 December 2008. India's fourth largest IT exporter by sales Wipro slipped 4.76% to Rs 249.20 even as its ADR gained 1.71%.
A firm rupee also weighed on IT shares. The rupee was trading firm at 48.50/52 per dollar, compared with Wednesday's close of 49.03/04. A stronger rupee affects operating margins of IT firms negatively as they earn most of their revenues from exports.
Select shares retraced sharply from the day's high. DLF (down 2.91% to Rs 255, after hitting a day's high of Rs 270), Tata Steel (down 0.51% to Rs 216.30, off day's high of Rs 225.90), and ONGC (down 1.91% to Rs 664, easing from early high of Rs 684), slipped.
Cement stocks surged on reports a host of multinational cement makers are in talks to buy out promoters in Andhra Cements at a huge premium to the ruling market price. ACC (up 3.29% to Rs 492.05), UltraTech Cement (up 7.74% to Rs 352), and India Cement (up 4.42% to Rs 98), rose.
Andhra Cements hit 20% upper circuit at Rs 22.46 on reports a host of multinational cement makers including Lafarge, CRH and Italcementi, are in the race to buy out promoters at Rs 75 a share, at a huge premium of 233% over the current market price.
Sri Digvijay Cements (up 20% to Rs 7.17), Mysore Cements (up 20% to Rs 14.72), Prism Cement (up 7.10% to Rs 18.56), Sagar Cements (up 5% to Rs 129.45), Saurashtra Cement (up 10% to Rs 18.12), and Gujarat Sidhee Cement (up 5% to Rs 7.35), surged.
Sugar stocks gained tracking sugar futures which rose for a fifth straight day in the commodities market. Shree Renuka Sugars, Dhampur Sugar, Bajaj Hindustan and Balrampur Chini were up by between 4.93% to 8.50%. The sugar futures price was lifted by a firm spot market and on a court ruling in favour of higher cane price set by Uttar Pradesh state government on 8 December 2008.
Shipping stocks advanced tracking recovery in the Baltic Dry Index. GE Shipping (up 18.38% to Rs 197), Mercator Lines (up 33.21% to Rs 36.50), and Shipping Corporation of India (up 12.20% to Rs 80.95), surged. The Baltic Dry Index gauges changes in the prices of shipping commodities.
State-run oil marketing companies (OMCs) slipped on rise in crude oil. HPCL (down 1.90% to Rs 224.40), BPCL (down 4.05% to Rs 322), and IOC (down 2.47% to Rs 377), slipped.
US crude for January 2009 delivery was up 21 cents at $43.73 a barrel today, 11 December 2008 on signs that top oil exporter Saudi Arabia has slashed January supplies ahead of next week's organisation of petroleum exporting countries (OPEC) meeting. State-run oil firms suffer revenue losses on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.
Reliance Industries was the top traded counter on BSE with turnover of Rs 416.25 crore followed by DLF (Rs 234.10 crore), Reliance Capital (Rs 216.70 crore), SBI (Rs 213.50 crore) and Reliance Natural Resources (Rs 168.55 crore).
Reliance Natural Resources led the volume chart on BSE clocking volumes of 3.33 crore shares followed by Suzlon (2.47 crore shares), Unitech (2.15 crore shares), GVK Power Infrastructure (2.13 crore) and Jaiprakash Associates (1.64 crore shares).
Anant Raj Industries galloped 20% to Rs 69.45 boosted by a bulk deal of 8.22 lakh shares struck on the counter at Rs 56 a piece on BSE at 12:44 IST.
Steel Strips Wheels gained 1.36% to Rs 52.15 on bagging an export order worth Rs 2.4 crore. The company announced the order win during trading hours today, 11 December 2008.
Nitin Fire Protection Industries spurted 20% to Rs 167.15 after Nitin M Shah, a promoter, increased his stake to 19.47% in the company after acquiring 20,000 shares on 10 December 2008 through open market purchases. The company announced the increase in promoters' stake during trading hours today, 11 December 2008.
KIC Metaliks galloped 18.13% to Rs 22.15 after Karni Syntex made an open offer to acquire 11.19 lakh shares at Rs 28 per share. The company made this announcement during trading hours today, 11 December 2008.
TVS Motor Company gained 5.73% to Rs 24.90 on launch of a new motorcycle model, Apache RTR 160 RD.
Market to remain volatile
The market may witness cautious trend as US indices closed on a firm note yesterday and Asian indices are exhibiting mixed trends in the morning trades. Although the bias remains positive, investors should maintain caution as profit taking at higher levels may pull down the market. Among the local indices the Nifty could test 2900 and 2850 on the downside while on the upper side it may move up to 2950. The Sensex has a likely support at 9500 and may face resistance at 9800.
US indices advanced on Wednesday as investors welcomed reports that Congress and the White House have struck a deal to provide a $14 billion bailout to the struggling auto industry. While the Dow Jones gained 70 points to close at 8761, the Nasdaq advanced by 18 points at 1565.
Most of the Indian ADRs trading on the US bourses closed in the green. ICICI Bank, Tata Motors & VSNL led the pack with gains of over 8% each followed by MTNL, HDFC Bank, Patni Computer, Wipro both of which gained above 1-2%. Infosys, and Satyam gained marginally. However, Rediff and Dr Reddy closed negative territory.
In the crude oil front, the Nymex light crude oil for January series surged by $1.45 to close at $43.52 per barrel. The bullion Comex gold for February delivery gained $34.60 to settle at $808.80 a troy ounce
Pre Session Commentary - Dec 11 2008
Today markets are likely to open negative despite US markets have ended in green. However after phenomenal gains for the two consecutive trading days, today one could anticipate some profit booking pressures. Yesterday’s rally showed strong Bull Run but one cannot ignore the weak sentiments that still persist across the broader markets. Asian Markets have opened with blood bath and there are possibilities that domestic markets may follow the same trend. The sentiments won’t be that strong and hence volatility is likely to creep during the later trading session.
On Wednesday, the markets opened with a positive gap and managed to retain firmness till the end. The positive sentiments across Asian markets also helped boost the morale of investors as the trend in benchmark indices remained firm till the end. The volume of trades in benchmark indices was phenomenal and sectors like Metal, Oil, Telecom and Capital Goods witnessed huge buying. Sensex and Nifty gained by 5.37% and 5.18%. Realty, Metal, Oil & Gas and Capital Goods gained 12.56%, 8.38%, 6.97% and 4.51% respectively. During the trading session we expect the market to be trading volatile.
The BSE Sensex closed with a gain of 492.28 points at 9,654.90 and NSE Nifty ended higher 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. The BSE Sensex touched intraday high of 9,678.70 and intraday low of 9,280.16.
On Wednesday, the US markets closed positive on the back of huge bail out package for the US Auto makers. The White House confirmed that it has reached an agreement with congressional Democrats on a $15 billion aid package for U.S. automakers. The White House called the aid either a bridge to viability or a bridge to bankruptcy. The crude futures soared to a high of $46.17 a barrel on globex. The crude oil futures however ended below the intraday highs after the U.S. Energy Information Administration (EIA) reported that crude-oil inventories during the week ended Dec. 5 rose by 400,000 barrels to stand at 320.8 million barrels. Further, there was speculation that Saudi Arabia may implement a big production cut in January also added to the rally.
The Dow Jones Industrial Average (DJIA) closed higher with 70.09 points at 8,761.42 NASDAQ index gained 18.14 points at 1,565.48 and the S&P 500 (SPX) also closed higher by 10.57 points to close at 899.24 points.
Indian ADRs ended mixed. In technology sector, Infosys gained by 0.56% and Wipro ended high by 1.17% followed by Satyam that gained 0.49% and Patni Computers closing high by 2.99%. In banking sector ICICI Bank gained 8.68%, while HDFC Bank gained by 3.26%. In telecommunication sector, Tata Communication inclined by 8.68%, while MTNL inclined by 4.70%.
Today the major stock markets in Asia opened negative. The Shanghai Composite is trading low by 3.36 at 2,072.73 Hang Seng is low by 25.37 points at 15,552.37. Further Japan''s Nikkei is low by 64.67 points at 8,595.57. South Korea’s Seoul Composite is high by 10.83 points at 1,156.70 and Singapore’s Strait Times is low by 6.78 points at 1,814.92.
The FIIs on Wednesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 1,724.50 Crore and gross debt purchased stood at Rs 193.70 Crore, while the gross equity sold stood at Rs 1,264.20 Crore and gross debt sold stood at Rs 35.20 Crore. Therefore, the net investment of equity and debt reported were Rs 460.40 Crore and Rs 158.50 Crore respectively.
On Wednesday, the partially convertible rupee ended at 49.11 per dollar as against 49.58/59 on Friday last week. The rupee ended stronger by 0.20% as the stock markets witnessed a phenomenal rally.
On BSE, total number of shares traded was Rs 31.14 Crore and total turnover stood at Rs 4,180.57 Crore. On NSE, total volume of shares traded was Rs 72.70 Crore and total turnover was Rs 11,519.57 Crore.
Top traded volumes on NSE Nifty – Unitech with 92869953 shares, Suzlon Energy with total volume traded 48191834 shares, followed by SAIL with 26293865 shares, DLF with 26196390 shares and Tata Steel with 15661932 shares.
On NSE Future and Options, total number of contracts traded in index futures was 1033254 with a total turnover of Rs 13,892.64 Crore. Along with this total number of contracts traded in stock futures were 986466 with a total turnover of Rs 9,817.12 Crore. Total numbers of contracts for index options were 1312292 with a total turnover of Rs 19,111.84 Crore and total numbers of contracts for stock options were 74492 and notional turnover was Rs 775.96 Crore.
Today, Nifty would have a support at 2,838 and resistance at 2,970 and BSE Sensex has support at 9,409 and resistance at 9,735.
Market seen mixed
Key benchmark indices may see ranged activity tracking mixed global cues with Asian markets declining today and those of the US advancing overnight.
Inflation data based on the wholesale price index in the year through 29 November 2008, to be released by the government today, 11 December 2008, will be closed watched. Inflation based on the wholesale price index rose 8.4% in the year through 22 November 2008, a six-month low and also lower than its previous week's 8.84% rise, data released by the government on 4 December 2008 showed.
Meanwhile, the country's economic growth may fall short of the Reserve Bank of India's projection of 7.5-8% for the current financial year ending March 2009 and more pain could be in store for the next fiscal 2009-10 in terms of growth. RBI governor D Subbarao on Wednesday, 10 December 2008 indicated that the forecast might be revised downwards when RBI reviews the annual policy for 2008-09 in January 2009.
Most Asian markets were trading lower today, 11 December 2008 on uncertainty over quick approval for US auto rescue plans. China's Shanghai Composite fell 0.65% or 13.61 points at 2,065.50, Hong Kong's Hang Seng was down 0.91% or 141.90 points at 15,435.84, Japan's Nikkei slipped 0.80% or 68.97 points at 8,591.27, Singapore's Straits Times plunged 1.34% or 24.39 points at 1,797.31, Taiwan's Taiwan Weighted declined 0.09% or 4.01 points at 4,654.86. However, South Korea's Seoul Composite was up 0.36% or 4.08 points at 1,149.9
US markets rose on Wednesday, 10 December 2008 as investors mulled progress on a 15-billion-dollar bailout plan being debated in Congress for troubled American automakers.
The Dow Jones industrial average rose 70.09 points, or 0.81%, to 8,761.42. The Standard & Poor's 500 Index gained 10.57 points, or 1.19%, to 899.24. The Nasdaq Composite Index was up 18.14 points, or 1.17%, at 1,565.48.
Back home, frenzied buying in index pivotals on speculation US lawmakers will approve a $15 billion bailout of American auto companies boosted the domestic bourses on Wednesday, 10 December 2008. The BSE 30-share Sensex surged 492.28 points or 5.37% to 9,654.90 and the S&P CNX Nifty advanced 144.25 points or 5.18% to 2928.25, on that day.
Foreign institutional investors (FIIs) were net buyers worth Rs 950.65 crore while mutual funds sold shares worth Rs 59.01 crore on Wednesday, 10 December 2008, according to provisional data on NSE.
US crude for January 2009 delivery was up 21 cents at $43.73 a barrel today, 11 December 2008 on signs that top oil exporter Saudi Arabia has slashed January supplies ahead of next week's organisation of petroleum exporting countries (OPEC) meeting.
FIIs step up buying
Inflow of Rs 460.30 crore on 8 December 2008
Foreign institutional investors (FIIs) purchased shares worth a net Rs 460.30 crore on Monday, 8 December 2008, much higher than Rs 51.20 crore on Friday, 5 December 2008.
FII inflow of Rs 460.30 crore on 8 December 2008 was a result of gross purchases Rs 1724.50 and gross sales Rs 1264.20 crore. The BSE Sensex gained 197.42 points or 2.2% to 9,162.62 on that day.
FII inflow in December 2008 totaled Rs 727 crore (till 8 December 2008). FII outflow reached Rs 54,010.20 crore in calendar 2008, so far, till 8 December 2008, as against an inflow of a huge Rs 69,430.50 crore in the corresponding period last year.
There are a total of 1587 foreign funds registered with the Securities & Exchange Board of India (Sebi).
Trading Calls - Dec 11 2008
Nifty (2928) Sup 2850 Res 2975
Buy NTPC (169) SL 166 Target 175, 177
Buy RCOM (228) SL 223 Target 238, 240
Buy Educomp (2168) SL 2145 Target 2210, 2225
Buy L&T (780) SL 773 Target 794, 798
Sell Cipla (188) SL 192 Target 180, 179
Daily News Roundup - Dec 11 2008
· ONGC plans hit, as Imperial does not renew its license to prospect oil in Kazakhstan. (ET)
· ONGC to raise Rs50bn from Indian banks to complete the acquisition of Imperial Energy. (BS)
· DLF led consortium emerges as the sole bidder for Gurgaon metro project. (BS)
· Reliance Industries to borrow US$400mn from JP Morgan Chase to purchase equipment from its US suppliers. (BS)
· DLF and Unitech may cut prices by 30% next year. (BS)
· Dr Reddy’s subsidiary may win eight drug supply contracts from AOK, Germany’s largest health insurance company. (BS)
· HCL Tech is set to conclude its £441mn acquisition of Axon Group on December 15, 2008. (ET)
· DLF to denotify IT SEZ and six other developers to cut size of their respective SEZs. (FE)
· Tata Steel to produce and sell more in the current year from its Indian operations. (FE)
· GMR Infra’s Andhra Pradesh plant starts electricity generation. (FE)
· Suzlon rejigs top management, CMD to steer company’s operations.
· Petronet LNG signs one year LNG supply agreement beginning January 2009. (DNA)
· Heineken may pay a multi year commercial fee of US$100mn to United Breweries for handling distribution and bottling of its beer brands in India. (ET)
· Ranbaxy gets reprieve in UK cartel case along with other five generic companies. (ET)
· Bombay High Court grants an injunction against Cipla to Roche over the latter’s patent of Valganciclovir. (ET)
· Credit Suisse plans to cut down outsourcing to Wipro. (ET)
· Bajaj Holding buys an additional 5% stake in Bajaj Finserve through the creeping acquisition route. (ET)
· Madras Aluminum suspends production at its aluminum plant with immediate effect. (ET)
· HCC’s Lavasa project on track despite meltdown. (BL)
· Infotech Enterprises is gearing up to tap big contracts in defense sector. (BL)
· Gujarat NRE Coke plans DVS-rights issue at 1:450. (BS)
· Future Group plans expansion of 600,000 square feet in east India over the next one year. (ET)
· Future Group to cut prices of its private labels across all product categories. (BS)
· Oil India plans to foray into the telecom sector. (ET)
· Elder Pharma to ink two more nutraceutical deals. (BL)
· State owned Banks are planning to cut rates on small ticket loans by up to 300bps. (ET)
· TRAI plans administrative charges for 3G bids at the rate of 2% of the highest bid amount. (ET)
· Subbarao says RBI might further lower growth forecasts for FY09. (ET)
· Government plans to give tax-free status to equity returns from private PFs and superannuation funds. (ET)
· Government issues Rs100bn bonds to 23 fertilizer companies. (BS)
Car-ry on carefully!
Don't drive as if you owned the road. Drive as if you owned the car
The bulls appeared to be on overdrive on Wednesday. Today’s start again promises to be good given the developments in the US market. Use the gains to lighten position because the rally could run out of gas sooner than expected. The US House of Representatives approved a $14 billion federal loan package for the struggling big three automakers on a 231-170 vote late on Wednesday. Its fate in the Senate remains uncertain. On the flip side, the $14bn is slightly less than discussed earlier and almost half the amount sought by automakers.
The weekly inflation figures have lost their charm with the government and RBI more keen about growth. Meanwhile, RBI Governor indicated that the growth forecast might be revised downwards when the central bank reviews the annual policy in January 2009. The IIP numbers to be announced later on Friday would be anxiously awaited.
RCom could see action as global telecom companies are in talks to acquire around 20-26% stake in the company. Reliance Capital too could see some fund buying today.
Lafarge, CRH and Italcementi are reportedly in the race to acquire Andhra Cements.
Reports state that Infotech Enterprises is gearing up to tap big contracts in defense sector.
State owned banks are planning to cut rates on small ticket loans by up to 300bps.
TRAI plans administrative charges for 3G bids at the rate of 2% of the highest bid amount.
US stocks rallied on Wednesday following reports that Congress and the White House have struck a deal to provide a $14 billion bailout to the auto industry.
The Dow Jones added 0.8%. The Standard & Poor's 500 (SPX) index gained 1.2% and the Nasdaq was up 1.2%.
The bailout package, which has to get clearance from the Senate would enable GM and Chrysler to avoid filing for bankruptcy through at least the end of March.
The dollar gained versus the euro and fell against the yen. U.S. light crude oil for January delivery rose $1.45 to close at $43.52 a barrel on the New York Mercantile Exchange following a mixed weekly crude inventories report. COMEX gold for February delivery jumped $34.60 to $808.80 an ounce.
Among the major bulk deals; Lotus Global Investments has purchased 0.5mn equity shares of Ankit Metal at an average price of Rs17.
Insider trades:
3iInfotech: V. Srinivasan, MD & CEO has purchased 24,000 equity shares of the company on December 8, 2008.
House of Pearl Fashion: Deepak Seth, Chairman has purchased 22,519 equity shares of the company on December 8,2008.
Aurobindo Pharma: Trident Chemphar Limited (Promoter group) has purchased 515,000 equity shares of the company on 4th and 5th December.
Shree Ashtavinayak: Dhilin Mehta, CMD has purchased 2,000 equity shares of the company on December 8, 2008.
Indian markets ended at day's high in a rally propelled by heavy buying in the index pivotal like Reliance Industries, DLF and Tata Steel. Buying was witnessed across the board with the realty, metals and oil & gas stocks among the major gainers.
The broader market also participated in the rally with the BSE mid-cap index BSE small-cap Index adding over 2% each. Finally, the BSE benchmark Sensex surged 492 points to close at 9,654 and the NSE Nifty index was up 144 points ending at 2,928.
Market breath was positive, 1,530 stocks advanced against 800 declines, while, 116 stocks remained unchanged.
Among the 30-components of Sensex, 29 stocks ended in the green and only 1 stock ended in the negative terrain, the big gainers were DLF (22%), M&M (17%), Grasim (14.3%) and Tata Steel (13%). Ranbaxy was the only loser, down 1%.
Shares of Unitech surged by over 6% to Rs35 after reports stated that the company plans to invest Rs25bn to develop 35 hotels over the next seven years. The scrip touched an intra-day high of Rs35.9 and a low of Rs33.2 and recorded volumes of over 32,00,00,000 shares on BSE.
Shares of Wockhardt surged by over 3% to Rs99 after reports stated that the company was in talks to raise US$100mn for clearing FCCB dues. The scrip touched an intra-day high of Rs101 and a low of Rs98 and recorded volumes of over 21,000 shares on BSE.
Apollo Tyres declined by a percent to Rs20.2. According to reports, the company has slashed their product prices to pass on the 4% excise duty cut benefit to customers. The scrip touched an intra-day high of Rs21 and a low of Rs19 and recorded volumes of over 1,00,000 shares on BSE.
Shares of Jet Airways gained after reports said that the company plans to lease five aircraft to Gulf Air Co. and Turkish Airlines Inc. to cut costs. Jet Airways will lease two Airbus SAS A330 aircraft to Gulf Air for four months. Three Boeing Co. 777 planes will be leased to Turkish Airlines for six months.
The stock was up by a 1.5% to Rs135 after hitting an intra-day high of Rs138 and a low of Rs134 and recorded volumes of over 49,000 shares on BSE.
Shares of MTNL advanced after reports stated that the company would launch mobile video surveillance with uniting its 3G services with conventional closed-circuit TV.
The 3G services would be launched on December 11 in Delhi. The services are expected to be launched in Mumbai too soon. The launch will put the country on the global 3G map a month ahead of the process to offer private firms 3G licenses. The stock was up by 3% to Rs75 after hitting an intra-day high of Rs76.9 and a low of Rs73 and recorded volumes of over 1,00,000 shares on BSE.
Shares of Kalpataru Power advanced by 3% to Rs233 after reports stated that the company won a gas pipeline contract from GAIL valued at Rs2.4bn. The scrip touched an intra-day high of Rs239 and a low of Rs230 and recorded volumes of over 81,000 shares on BSE.
Asian stocks open negative
Asian stocks fell for the first time this week after a USD 14 billion US automaker bailout ran into opposition in the Congress, raising concern the recession will deepen in the world`s biggest economy.
Toyota Motor which makes more than a third of its sales in North America slid more than 1.5% and Hyundai Motor dropped 2% as Senate Republicans yesterday voiced opposition to a rescue for General Motors Corp. and Chrysler LLC.
Japanese benchmark index Nikkei decreased 68.97 points, or 0.80%, to trade at 8,591.27.
Hong Kong`s Hang Seng index slipped 165.40 points, or 1.06%, to trade at 15,412.34.
China`s Shanghai Composite declined 6.40 points, or 0.31%, to trade at 2,072.72.
Taiwan`s Taiex index slid 1.38 points, or 0.03%, to trade at 4,657.49.
South Korea`s Kospi index climbed 5.05 points, or 0.44%, to trade at 1,150.92.
Singapore`s Straits Times fell 22.40 points, or 1.23%, to trade at 1,799.30. (8.08 a.m., IST)
Precious metals turn brighter
Gold and silver shine as dollar weakens
With a weak dollar, gold and silver prices once again rose today, Wednesday, 10 December, 2008. Bullion metals rose due to the falling dollar. 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.
On Wednesday, Comex Gold for February delivery rose $34.6 (4.5%) to close at $808.8 an ounce on the New York Mercantile Exchange. The metal is already up 7.5% this week. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (22%) 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 3.3% till date. Futures have averaged $878 in 2008. The dollar index has gained 10% 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 Wednesday, Comex silver futures for December delivery rose 35 cents (3.6%) to $10.2 an ounce. Last week, silver lost 7.7%. For the month of November, silver prices had gained 5%. Till date, silver has lost 30.6% 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 Wednesday, the U.S. dollar fell against most major currencies, but rose against the Japanese yen, as progress toward a $15-billion federal bailout for the nation's auto industry buoyed risk appetite among investors. The dollar index, a measure of the greenback against a trade-weighted basket of six currencies, fell 0.5% to 85.36
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 yesterday 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%.
At the MCX, gold prices for February delivery closed higher by Rs 367 (2.9%) at Rs 12,718 per 10 grams. Prices rose to a high of Rs 12,769 per 10 grams and fell to a low of Rs 12,338 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed Rs 344 (2.4%) higher at Rs 17,167/Kg. Prices opened at Rs 16,850/kg and rose to a high of Rs 17,260/Kg during the day's trading.
Crude shoots up
Prices rise more than 3% as traders anticipate modest energy demand due to auto bailout
After slipping yesterday, crude prices went higher once again on Wednesday, 10 December, 2008. Prices rose after energy department's weekly inventory report showed that crude supplies rose less than expected in the last week. Crude also rose on anticipation that Washington's bailout plan foe the three biggies will spur energy demand in the coming months.
On Wednesday, crude-oil futures for light sweet crude for January delivery closed at $43.52/barrel (higher by $1.45 or 3.4%) on the New York Mercantile Exchange. Earlier in the day, prices touched a high of $46.17. Prices reached a high of $147 on 11 July but have dropped almost 71% 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 50%.
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.
The EIA reported in its weekly inventory report that U.S. crude oil inventories rose by 400,000 barrels during the week ended 5 December, 2008 to stand at 320.8 million barrels. Market had expected a buildup of 2.7 million barrels in crude-oil stocks for the week.
The report also detailed that total motor gasoline inventories increased by 3.8 million barrels last week, and distillate fuel inventories increased by 5.6 million barrels.
EIA reported yesterday 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 White House confirmed today that it has reached an agreement with congressional Democrats on a $15 billion aid package for U.S. automakers. It's been reported that General Motors and Chrysler will be receiving the initial aid, as Ford is currently in a better financial position.
At the currency market on Wednesday, the U.S. dollar fell against most major currencies, but rose against the Japanese yen, as progress toward a $15-billion federal bailout for the nation's auto industry buoyed risk appetite among investors. The dollar index, a measure of the greenback against a trade-weighted basket of six currencies, fell 0.5% to 85.36.
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 rose 3 cents to end at 97 cents a gallon, while January heating oil fell 4 cents to end at $1.40 a gallon.
Natural gas for January delivery gained 11 cents to $5.69 per million British thermal units.
At the MCX, crude oil for December delivery closed at Rs 2,203/barrel, higher by Rs 72 (3.4%) against previous day's close. Natural gas for December delivery closed at Rs 276.9/mmbtu, higher by Rs 1.2/mmbtu (0.4%).
ING Vysya Bank
We recommend a buy in ING Vysya Bank from a short-term horizon. It is apparent from the charts that its medium-term downtrend, which commenced from September high of Rs 275, found support at Rs 113 that was almost the stock’s 52-week low. It reversed direction from here triggered by bullish divergence in the daily relative strength index (RSI). Since then the stock has been on a short-term up trend. The stock breached its medium-term downtrend line as well as 21-day moving average recently. Moreover, on December 10, the stock gained 8 per cent, reinforcing its bullish momentum. The daily RSI is likely to enter the bullish zone from the neutral region and weekly RSI is on the verge of entering the neutral region from the bearish zone. The significant resistance for the stock is at Rs 200. Our short-term outlook for the stock is bullish. We expect the stock’s up move to continue until it hits our price target of Rs 170 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 147.
via BL
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