Eveninger - Dec 30 2008
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Tuesday, December 30, 2008
BSE Bulk Deals to Watch - Dec 30 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
30/12/2008 500032 BAJAJHINDLTD RAHUL KUMAR BAJAJ B 1400540 64.34
30/12/2008 532946 BANG KUNDAN LEASING AND FINVEST PVT. LTD B 89388 160.30
30/12/2008 532946 BANG MARUTI SECURITIES LTD. S 70996 162.00
30/12/2008 506093 BCL FORGING SALASAR STOCK BROKING LTD B 538950 12.50
30/12/2008 506093 BCL FORGING ELEGANT SHARE BROKING PVT LTD B 650000 12.80
30/12/2008 506093 BCL FORGING RAJKUMAR SARAOGI S 1188900 12.66
30/12/2008 531335 CARN NUT ANA NITIN RAOJIBHAI DESAI S 35000 73.85
30/12/2008 511092 JMD TELEFILM ASHOKMOOLCHANDJAIN B 25000 16.60
30/12/2008 511092 JMD TELEFILM ASHOK M JAIN HUF B 25000 16.60
30/12/2008 511092 JMD TELEFILM SAROJ KOTHARI S 20100 16.60
30/12/2008 531602 KOFF BR PICT MITESH NANDLAL SISODIYA S 191559 3.05
30/12/2008 508989 NAVNEET PUBLICATIONS (I) LTD. TUSHAR JANI HUF B 2248950 35.00
30/12/2008 508989 NAVNEET PUBLICATIONS (I) LTD. ANJALEE EXIM PRIVATE LIMITED B 2039893 35.00
30/12/2008 508989 NAVNEET PUBLICATIONS (I) LTD. DHARMESSH K CHHEDA B 2850000 35.00
30/12/2008 508989 NAVNEET PUBLICATIONS (I) LTD. NOTZ STUCKI ET CIE SA AC ARUNA FUND S 7174893 35.00
30/12/2008 523756 SREI INFRA SANLAM ASSET MANAGEMENT IRELAND LTD AC SANLAM GLOBAL BEST IDEAS B 747400 41.50
30/12/2008 531373 SUAVE HOTEL COMMERCIAL CONCEPT PRIVATE LIMITED B 178120 19.96
30/12/2008 531373 SUAVE HOTEL COMMERCIAL CONCEPT PRIVATE LIMITED S 49149 18.22
30/12/2008 530735 SUPER BAKE I AMIT MAKHANLAL AGRAWAL S 15265 4.83
30/12/2008 522229 TANEJ AERO A MARSHAL INDIA SELECT FUND LTD B 300000 29.00
30/12/2008 522229 TANEJ AERO A CITIGROUP GLOBAL MARKET MAURITIUS PVT. LTD. S 3000000 29.00
30/12/2008 519228 TEMPT.FOODS BEEJAY INVESTMENT FINANCIAL CONSULTANT PVT. LTD. B 200000 171.99
NSE Bulk Deal Watch - Dec 30 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
30-DEC-2008,BIRLACORPN,Birla Jute & Industries,DELTA FUND MAURITIUS LTD,BUY,503399,128.87,-
30-DEC-2008,CENTRALBK,Central Bank of India,DELTA FUND MAURITIUS LTD,BUY,7120700,40.30,-
30-DEC-2008,GAMMONIND,Gammon India Ltd.,COPTHALL MAURITIUS INVESTMENT LIMITED,BUY,806000,75.99,-
30-DEC-2008,HCIL,HIMADRI CHEMICALS AND IND,HIMADRI DYES & INTERMEDIATES LTD,BUY,400000,111.50,-
30-DEC-2008,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,BUY,1601234,133.74,-
30-DEC-2008,JKLAKSHMI,JK Lakshmi Cement Limited,DELTA FUND MAURITIUS LTD,BUY,802004,34.95,-
30-DEC-2008,PSTL,Pyramid Saimira Theatre L,KSHITIJ-PORTFOLIO-PVT.-LTD.,BUY,155000,42.40,-
30-DEC-2008,PSTL,Pyramid Saimira Theatre L,MULTIPLIER S AND S ADV PVT LTD,BUY,145448,42.40,-
30-DEC-2008,SELMCL,SEL Manufacturing Company,DKG SECURITIES PVT. LTD.,BUY,4,55.00,-
30-DEC-2008,SREINTFIN,SREI Infrastructure Finan,SANLAM ASST MGT. IRELAND LTD A/C SANLAM GLOBAL BEST IDEAS,BUY,627900,41.50,-
30-DEC-2008,TELEDATAGL,Teledata Informatics Limi,MARSHAL INDIA SELECT FUND LTD-SUB A\C GEOMATRIX (HK) LTD,BUY,1375000,6.50,-
30-DEC-2008,TVSMOTOR,TVS Motor Company Limited,DELTA FUND MAURITIUS LTD,BUY,2600000,22.15,-
30-DEC-2008,BIRLACORPN,Birla Jute & Industries,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,503399,128.87,-
30-DEC-2008,CENTRALBK,Central Bank of India,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,7150700,40.30,-
30-DEC-2008,HCIL,HIMADRI CHEMICALS AND IND,DAMODAR PRASAD CHOUDHARY,SELL,400000,111.50,-
30-DEC-2008,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,SELL,1600726,133.82,-
30-DEC-2008,JKLAKSHMI,JK Lakshmi Cement Limited,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,802004,34.95,-
30-DEC-2008,PSTL,Pyramid Saimira Theatre L,KSHITIJ-PORTFOLIO-PVT.-LTD.,SELL,74013,42.40,-
30-DEC-2008,PSTL,Pyramid Saimira Theatre L,MULTIPLIER S AND S ADV PVT LTD,SELL,120198,42.40,-
30-DEC-2008,SELMCL,SEL Manufacturing Company,DKG SECURITIES PVT. LTD.,SELL,120204,55.26,-
30-DEC-2008,TELEDATAGL,Teledata Informatics Limi,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,1362002,6.50,-
30-DEC-2008,TVSMOTOR,TVS Motor Company Limited,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,2600000,22.15,-
Post Session Commentary - Dec 30 2008
The Indian market closed on a firm note tracking the positive opening of the Europen markets along with the expectations of another stimulus package by the government and also hopes of further rates cut by the Central bank. This led the rate sensitive stocks to gain momentum during the trading session. Meanwhile, Prime Minister Manmohan Singh has directed the RBI to soften the cash reserve ratio (CRR) for banks and short-term interest rates. Market is anticipating that, RBI may cut the CRR by 1% that will give banks some room to lend. In addition to this, it may also slash Repo Rate and Reverse Repo Rate for Banks by 1/2 % point each. Along with this, recent news from Mr. Montek Singh Ahluwalia, the deputy head of the Planning commission, of further easing monetary policy due to lower inflation and slowing economic growth have created scope for investors to have faith on market. Also, the higher index futures also added to the sentiments tracking the US Federal Reserve approval of pumping $ 5 billion into General Motors'' (GM) auto and mortgage financing arm GMAC and lending an additional $1 billion to GM to help it buy shares in GMAC, which is considered crucial to GM''s survival.
The domestic market opened on a positive note but soon turned volatile as some of the Asian markets fell into red. From the sectoral front, all the sensitive indices like the Realty and Auto index gained to close with strong gains of more than 3% each. The BSE Sensex closed above the 9,700 mark and NSE Nifty closed above 2,950 mark.
Among the Sensex pack 28 stocks ended in positive territory and 1 ended in red. The market breadth was positive as 1644 stocks closed in green while 810 stocks closed in red and 85 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 182.64 points at 9,716.16 and NSE Nifty ended up by 57.30 points at 2,979.50. The BSE Mid Caps and Small Caps also ended with gains of 68.46 points and 63.97 points at 3,216 and 3,635.48 respectively. The BSE Sensex touched intraday high of 9,785.04 and intraday low of 9,494.70.
Gainers from Sensex are Satyam Computers closed higher (8.33%) along with Reliance Comm (7.16%), JP Associates (6.01%), M&M (5.75%) and Tata Motors (4.91%).
Losers from the BSE Sensex pack is Grasim Industries closed lower by (1.16%).
The Power index grew by (2.38%) or 42.39 points at 1,824.45. Pushed it up are Lanco Infra higher by (8.09%) along with GMR Infra (4.16%), Reliance Power (3.88%), NTPC (2.48%), Neyvelli Lignite (2.62%), Tata Power (1.82%) and Crompton Greaves (2.19%).
The Capital Goods index closed higher by (2.92%) or 195.29 points at 6,877.72. Major gainers are Bharat Electrical (5.49%), Jyoti Structure (4.97%), Praj Industries (4.28%), ABB (3.32%), BEML (3.08%), L&T (3.90%).
The IT index gained (2.40%) or 52.11 points at 2,226.06. Scrips that closed in green are Satyam Comp (8.33%) followed by Mphasis (7.30%), Rolta Ind. (4.28%), Wipro (3.63%), HCL Technologies (3.11%) and Oracle Fin (3.68%).
The BSE Realty index closed with handsome gains of (3.48%) or 76.79 points at 2,283.52. Major gainers are Akruti City (6.53%) along with HDIL (4.86%), Omaxe (4.60%), Indiabull Real (4.57%), Unitech (4.35%), Anasl Infra (4.09%) and Parsvnath (3.99%).
The BSE Auto index surged (3.09%) or 72.50 points to close at 2,421.64 as MRF (7.05%), Apollo Tyres (6.67%), Ashok Leyland (6.38%), M&M (5.75%), Tata Motors (4.91%), Bajaj Auto (4.64%) and Maruti Suzuki (3.75%) closed in positive territory.
The BSE Bankex index closed higher by (2.24%) or 121.05 points at 5,525.66. Scrips that gained are PNB (3.71%), Axis bank (3.15%), BOB (3.11%), ICICI Bank (3.05%), IDBI Bank (3.04%), Kotak bank (2.78%), Yes bank (2.70%) and BOI (1.91%).
The BSE Metal index grew by (1.86%) or 95.12 points at 5,205.04. Pushed it up are Sterlite Inds closed higher by (4.82%) along with Gujarat NRE Coke (4.17%), Sesa Goa (3.18%), Welspun Guj SR (2.90%), Hindalco Inds (2.53%) and Ispat Inds (2.53%).
Winning spree continues
The market wiped out a loss of over 40 points incurred in the first half after a strong bout of buying led by realty and auto stocks triggered a wide-spread buying. The Sensex started the day 91 points higher at 9,625 following weakness in US indices but crashed to the day's low of 9,495 on relentless selling. While the market recovered thereafter, Sensex witnessed a sharp turnaround in afternoon as gains in heavy weights, realty, auto and capital goods stocks propelled it to an intra-day high of 9,785. After gyrating 290 points during the intra-day trades, Sensex gained 183 points to close at 9,716, while the Nifty ended 57 points higher at 2,980.
The market breadth was positive. Of 2,539 stocks traded on the BSE, 1,644 stocks advanced whereas 810 stocks declined. Eighty five stocks ended unchanged. BSE Realty led the pack and gained 3.48% followed by BSE Auto (up 3.09%) and BSE CG (up 2.92%).
Satyam Computer Services was the star performer among the heavyweights and the stock soared 8.33% at Rs160.60. Among other major gainers, Reliance Communications advanced 7.16% at Rs228.10, JP Associates jumped 6.01% at Rs83.75, Mahindra & Mahindra rose 5.75% at Rs270.45 and Tata Motors moved up by 4.91% at Rs156.10. Sterlite Industries advanced 4.82% at Rs265.05, Ranbaxy Laboratories gained 4.09% at Rs241.70 and Reliance Infrastructure added 4.06% at Rs585.25. However, only Grasim Industries inched lower.
Over 4.32 crore shares of Bajaj Hindustan changed hands on the BSE followed by Unitech (2.71 crore shares), Reliance Natural Resources (2.32 crore shares), Suzlon Energy (1.90 crore shares) and Satyam Computer Services (1.71 crore shares).
Rate sensitive stocks lead rally
Interest rate sensitive sectors led the rally on the bourses on hopes of further cut in interest rates by the central bank and on a likely second government stimulus package for the economy. However, a sharp slide in index heavyweight Reliance Industries (RIL) in late trade pulled the key benchmark indices off the higher level. The BSE 30-share Sensex advanced 182.64 points or 1.92% at 9716.16, off 68.88 points from the day's high. Firm European markets and higher US index futures lifted sentiment.
However volatility was high as it has been in the past few days. Index heavyweight Reliance Industries (RIL) was responsible for the volatility in the market. Stocks surged in early trade on hopes for a second government stimulus package for the economy, expectations of further reduction in interest rates and on firm Asian stocks. Selling pressure in index heavyweight Reliance Industries (RIL) pulled the market into the red shortly.
The market moved in narrow range in early afternoon trade as some Asian markets slipped into the red from green. Higher US index futures and firm start of European bourses lifted the domestic bourses, with the Sensex surging 251.52 points or 2.63% in late trade. A sharp slide in RIL pulled the market off the higher level later.
Trading in US index futures indicated, the Dow could rise 42 points at the opening bell, after the US government said late on Monday, 29 December 2008, it was pumping $5 billion into General Motors' (GM) auto and mortgage financing arm GMAC and lending an additional $1 billion to GM to help it buy shares in GMAC, which is considered crucial to GM's survival. The loan to GM would come on top of assistance extended to the No. 1 US automaker earlier this month.
The US government agreed on 19 December 2008 to rescue GM and Chrysler LLC with up to $17.4 billion in loans to stave off a collapse that would have cost hundreds of thousands of jobs and dealt a severe blow to an economy already in recession. GMAC has lost $7.9 billion over the last five quarters as the global credit crunch lifted its borrowing costs sharply and the value of many of its assets plunged.
Oil and bank stocks led rally in European markets. Key benchmark indices in Germany, France and UK were up by between 0.97% and 1.84%.
Asian markets were mixed. Key benchmark indices in Japan, South Korea, Taiwan were up by between 0.62% and 3.91%. However, indices in China, Singapore and Hong Kong were down by between 0.56% and 0.95%. Earlier in the day, gains in resource firms that could benefit from a sharp rebound in oil prices, had triggered a broad-based rally in Asian stocks.
Closer home, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Monday, 29 December 2008, said the government will come out with a second stimulus package for this fiscal and another package for fiscal year 2009-10 in the next few days to spur economic growth. With industrial production contracting by 0.4% in October 2008, for the first time in 15 years, and the exports declining by over 12% during the month, the government came out with a stimulus package on 7 December 2008 to spur growth and help the industry combat the impact of global financial meltdown.
As part of the stimulus package, the government cut excise duty by 4% across the board, except on petroleum products, and announced raising of the public expenditure by Rs 20,000 crore to boost demand.
Meanwhile, Prime Minister Manmohan Singh has reportedly directed the Reserve Bank of India (RBI) to reduce the mandatory cash reserve ratio (CRR) for banks and short-term interest rates. Reports suggest that the RBI may cut the CRR by one percentage point that will give banks more headroom to lend. It may also slash the short-term lending rate (repo rate) and the short-term borrowing rate (reverse repo rate) for banks by half percentage points each.
The BSE 30-share Sensex advanced 182.64 points or 1.92% at 9716.16. The Sensex opened 91.61 points higher at 9,625.13. The Sensex gained 251.52 points at day's high of 9,785.04 in late trade. At the day's low of 9,494.70, the Sensex lost 38.82 points in midmorning trade.
The S&P CNX Nifty advanced 57.30 points or 1.96% at 2979.50, retreating from an intra-day high of high of 2999.15. Nifty January 2009 futures were at 2975, a discount of 4.5 points from the spot closing.
The BSE Sensex has risen 387.24 points or 4.15% in last two trading days. Before the recovery, the Sensex declined 770.99 points or 7.63% in four trading days to 9,328.92 on 26 December 2008 from a recent high of 10,099.91 on 19 December 2008.
The barometer index is down 10570.83 points or 52.10% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 11490.61 points or 54.18% below its all-time high of 21,206.77 struck on 10 January 2008.
All the sectoral indices on BSE logged gains. The BSE Auto index (3.09%), the BSE Realty index (up 3.48%), the BSE Capital Goods index (up 2.92%), the Bankex (up 2.24%), the BSE Teck index (up 2.73%), the BSE IT index (up 2.40%), the BSE Power index (up 2.38%), outperformed the Sensex.
The BSE FMCG index (up 0.32%), the BSE PSU index (up 1.20%), the BSE Consumer Durables index (up 1.12%), the BSE HealthCare index (up 0.98%), the BSE Metal index (up 1.86%), and BSE Oil & Gas index (up 0.51%), underperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1633 shares advanced as compared with 821 that declined. 80 shares remained unchanged.
The BSE Mid-Cap index advanced 2.18% to 3,216, outperforming the Sensex. The BSE Small-Cap index gained 1.79% to 3,635.48, underperforming the Sensex.
Grasim was the lone loser from the 30-member Sensex pack. Shares of the diversified firm lost 1.16% to Rs 1233.60.
Jaiprakash Associates (up 6.01%), Ranbaxy (up 4.09%), and Reliance Infrastructure (up 4.06%), edged higher from the Sensex pack
India's fourth largest IT exporter by sales Satyam Computer Services jumped 8.67% to Rs 161.10, extending yesterday's (29 December 2008) 9.41% rally helped by a newspaper report that private equity players were eyeing a stake in the company. It was the top gainer from the Sensex pack. As per reports, some institutional investors in Satyam had approached IT firms and private equity players for a stake sale.
Satyam shares are down almost a third since an aborted attempt two weeks ago to buy two firms in which management held stakes. Satyam on Monday, 29 December 2008, said three more independent directors, Krishna Palepu, Vinod Dham and Mendu Rammohan Rao, had quit. On Friday, 26 December 2008, the company announced the resignation of independent director Mangalam Srinivasan.
Other IT pivotals also logged gains on a weaker rupee. India's second largest IT exporter by sales Infosys rose 1.41% to Rs 1126. India's fourth largest IT exporter by sales Wipro gained 2.99% to Rs 234. India's largest IT exporter by sales Tata Consultancy Services advanced 0.27% to Rs 478.15.
Rolta India surged 4.26% to Rs 115.75 on acquiring a US firm which provides IT solutions to oil and gas refineries.
The partially convertible rupee was at 48.55 per dollar against its previous close of 48.41/44. A weaker rupee boosts margins of IT pivotals as they derive majority of their revenue from exports to the US.
India's second largest cellular services provider by sales Reliance Communication (RCom) advanced 7.16% to Rs 228.10 after the company said it had spent Rs 10000 crore ($2.1 billion) on expanding GSM services across India, and expects to spend a further Rs 2000-4000 crore on building 3G networks.
RCom also said during trading hours it had repurchased zero coupon foreign currency convertible bonds worth Rs 121 crore ($25 million) at a discount of 52.5%.
Idea Cellular surged 8.02% to Rs 53.85 on its plans to invest Rs 300 crore in the next 15 months to grow its business in Karnataka.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) gained 0.13% to Rs 1248.95, after its unit Reliance Petroleum started processing crude at its 5,80,000 barrels per day refinery last week. But the stock came sharply off the day's high of Rs 1272 struck in late trade. At the day's high, the stock had risen 1.98%. The stock witnessed a wild gyration during the day. It hit a low of Rs 1228.20.
Banking shares advanced on speculation falling bond yields and lower rates would accelerate loan growth and profitability. India's largest private sector bank by net profit ICICI Bank rose 3.05% to Rs 458.05. India's second largest private sector bank by net profit HDFC Bank gained 1.51% to Rs 1018.15. India's biggest bank in terms of total assets and branch network, State Bank of India, vaulted 1.35% to Rs 1288.85.
Auto shares gained on reports the government is likely to remove an additional excise duty of Rs 10,000-20,000 on large cars and sports-utility vehicles as part of the package for the automobile industry which is facing downturn in sales for want of cheap retail credit. India's biggest commercial vehicles maker by sales Tata Motors rose 4.91% to Rs 156.10, India's biggest small car maker by sales Maruti Suzuki India gained 3.72% to Rs 517.60 and India's top utility vehicles maker by market share Mahindra & Mahindra advanced 5.75% to Rs 270.45. The additional duty was imposed in June this year.
Realty shares gained on hopes of further sops in the second government stimulus package to boost the ailing sector. DLF (up 3.16%), Unitech (up 4.35%), and Indiabulls Real Estate (up 4.57%), gained.
India's largest power generation firm by sales NTPC gained 2.48% to Rs 181.60 on reports it is one among the companies that have submitted bids for the 4,000 megawatt Tilaiya Ultra Mega Power Project in Jharkhand.
India's largest copper producer by sales Sterlite Industries advanced 4.82% to Rs 265.05 tracking a 2.87% rise in American depository receipt overnight.
India's largest engineering and construction company by sales Larsen & Toubro gained 3.90% to Rs 770 on hopes that lower interest rates would keep order flows strong and aid project funding.
India's largest power equipment maker by sales Bharat Heavy Electricals (Bhel) rose 2.01% to Rs 1373.95, extending yesterday's (30 December 2008) 3.60% rise after the company said on Friday, 26 December 2008, it had secured a Rs 5,040-crore contract from Jindal Power for setting up 2,400 megawatt power plant in Chhatisgarh.
PSU OMCs were mostly lower on reports the government is considering passing on the benefit of the fall in international crude oil prices to consumers by cutting petrol and diesel prices. HPCL (down 0.05%), and IOC (down 0.17%), slipped. However, BPCL gained 1.29%.
Reliance Industries topped the turnover chart on BSE with turnover of Rs 371.76 crore followed by Bajaj Hindusthan (Rs 278.33 crore), Satyam Computer Services (Rs 269.60 crore), Reliance Communication (Rs 150.74 crore) and Reliance Capital (Rs 142.39 crore).
Bajaj Hindusthan was the volume topper on BSE clocking volume of 4.32 crore shares followed by Unitech (2.71 crore), Reliance Natural Resources (2.33 crore), Suzlon (1.91 crore) and Satyam Computer Services (1.72 crore).
Sun TV Network jumped 8.58% to Rs 183.45. The company recently said its movie division will produce a mega-budget Rajinikanth starrer Tamil film Endhiran. The film, set to cost a whopping Rs 165 crore, is the highest budgeted Indian film till date.
Electrotherm India jumped 20% to Rs 128.40 on board's approval to spin off its engineering business into a new entity - Electrotherm Engineering & Projects.
Oil fell below $40 on Tuesday, 30 December 2008, as demand concerns overshadowed Middle East crude supply fears amid the Israeli-Hamas conflict, with prices on track to end the year down 60%, their biggest annual loss on record. US crude was down 24 cents at $39.78 a barrel, after having gained almost 1% earlier in the day.
Crude jumped as much as 12% on Monday, 29 December 2008, after Israel launched its fiercest air offensive in the Hamas-ruled Gaza strip in decades and prepared for a ground assault, raising fears that enraged Arab crude-producing neighbours would react.
Market seen opening firm
Key benchmark indices are likely open firm mirroring positive Asian indices. Also reports of the government working on a second stimulus package for the current fiscal may boost the sentiment. Also year end net asset value boosting exercise aid gains.
Reportedly the second stimulus package of 2009-10 is aimed at spurring growth in the wake of the slowdown owing to the global financial crisis. Planning Commission Deputy Chairman Montek Singh Ahluwalia said after market hours on Monday, 29 December 2008, he hopes the second stimulus package will be announced in the next few days
Trading may turn remain lacklustre amid the ongoing holiday season and festivities across the world, which is likely to impact trading volumes at the bourses. Mutual funds bought shares worth Rs 243.21 crore while foreign institutional investors (FIIs) were net buyers worth Rs 4.42 crore on Monday, 29 December 2008, according to provisional data on NSE.
Most Asian markets were trading higher today, 30 December 2008. China's Shanghai Composite was up 0.38% or 7.07 points at 1,857.55, Hong Kong's Hang Seng rose 0.60% or 86.53 points at 14,415.01, Japan's Nikkei gained 1.28% or 112.39 points at 8,859.56, South Korea's Seoul Composite advanced 1.63% or 18.27 points at 1,135.86, Taiwan's Taiwan Weighted surged 3.13% or 138.12 points at 4,554.28. However, Singapore's Straits Times was down 0.43% or 7.71 points at 1,772.86.
US markets declined on Monday, 29 December 2008 after Kuwait scrapped $ 17.4 billion petrochemical joint-venture with Dow Chemicals. The Dow Jones industrial average slipped 31.62 points, or 0.37%, to 8,483.93. The S&P 500 index fell 3.38 points, or 0.39%, to 869.42; the Nasdaq composite index fell 19.92 points, or 1.30%, to 1,510.32.
Oil prices rose on Monday, 29 December 2008 amid concern that Israeli attacks on Hamas could disrupt Middle East crude oil supplies, but economic troubles limited gains. US light, sweet crude was up 18 cents at $37.89 a barrel.
Pre Session Commentary - Dec 30 2008
Today the markets are likely to open positive. The monetary action to be taken shortly by the government may pump the morale of investors as more rate cuts are likely to come in near future due to softening of inflation. The majority of Asian markets have also opened positive despite negative closing of the US markets. The oil marketing companies’ stocks may be under pressure today as the Crude oil prices have gone up due to recent Israeli attack on Gaza province. Amidst minor hiccups we expect markets to trade volatile.
On Monday, the markets opened with a negative gap however after the post mid session it managed to close in green. The negative sentiment was seen in the morning because on Friday the advance tax collection data showed a fall of 22% yoy. However the markets started bouncing back after the planning commission deputy chairman Montek Singh Ahuwalliah announced about monetary action as the inflation has clammed down. On the other hand he also ruled out the possibility of any other fiscal stimulus. Sensex and Nifty gained 2.19% and 2.27%. Bankex, Metal, Oil & Gas and Power gained 3.71%, 3.23%, 2.87% and 2.01% respectively. During the trading session we expect the markets to be trading volatile.
The BSE Sensex closed higher by 204.60 points at 9,533.52 and NSE Nifty ended up by 64.95 points at 3060.75. The BSE Mid Caps and Small Caps ended with gains of 40.86 points and 22.97 points at 3,147.54 and 3,571.51 respectively. The BSE Sensex touched intraday high of 9,550.40 and intraday low of 9,162.66.
On Monday, the US markets closed in red. The sentiments were weak as there was not enough news to carry the market flow. However the markets managed to pare off its day’s early losses. The merger between Rohm and Hass has been questioned and therefore they were the biggest decliners and also most active traded stocks. On the other hand due to surge in oil prices the energy stocks were in the lime light. Crude oil futures for the month of February delivery grew $2.31 to $40.02 per barrel on New York Mercantile Exchange. The contract hit an intraday high of $42.20 a barrel in electronic trading amidst rising tension in the Middle East. The Israeli air strike in the Gaza Strip has raised concerns over the supply of oil. This has increased worries about a possible disruption to energy supplies from the Middle East.
The Dow Jones Industrial Average (DJIA) closed low with 219.35 points at 8,604.99 NASDAQ index fell 26.94 points at 1,552.37 and the S&P 500 (SPX) also closed lower by 19.14 points to close at 885.28 points.
Indian ADRs ended mixed. In technology sector, Infosys fell by 0.87% and Wipro gained by 8.53%, further Satyam ended with a gain of 6.19% and Patni Computers closed high by 0.18%. In banking sector ICICI Bank gained 8.94%, HDFC Bank grew by 9.61%. In telecommunication sector, Tata Communication rose by 2.96%, while MTNL inclined by 6.21%.
Today the major stock markets in Asia opened mixed. The Shanghai Composite is trading low by 3.54 points at 1,846.94 Hang Seng is high by 64.46 points at 14,392.94. Further Japan''s Nikkei gained by 112.39 points at 8,859.56. Taiwan weighted is high by 150.06 points 4,566.22 and Singapore’s Strait Times is low by 5.70 points at 1,774.87.
The FIIs on Monday stood as net sellers in equity and debt. Gross equity purchased stood at Rs 356.80 Crore and gross debt purchased stood at Rs 58.70 Crore, while the gross equity sold stood at Rs 616.10 Crore and gross debt sold stood at Rs 803.70 Crore. Therefore, the net investment of equity and debt reported were Rs (259.30) Crore and Rs (745.00) Crore respectively.
On Monday Indian Rupee closed at 48.42/43 a dollar, 3 paise stronger than Friday''s close of 48.45/46. Rupee gained strength due to surge in the stock markets.
On BSE, total number of shares traded were 27.52 Crore and total turnover stood at Rs 3,411.55 Crore. On NSE, total number of shares traded were 61.02 Crore and total turnover was Rs 9,062.00 Crore.
Top traded volumes on NSE Nifty – Unitech with 79334535 shares, Satyam with 73939412 shares, Suzlon Energy with total volume traded 34369164 shares followed by Reliance Petro 20682488 shares and SAIL with 17846467 shares.
On NSE Future and Options, total number of contracts traded in index futures was 816829 with a total turnover of Rs 10,881.06 Crore. Along with this total number of contracts traded in stock futures were 877900 with a total turnover of Rs 8,758.58 Crore. Total numbers of contracts for index options were 857877 with a total turnover of Rs 12,892.07 Crore and total numbers of contracts for stock options were 72527 and notional turnover was Rs 794.38 Crore.
Today, Nifty would have a support at 2,895 and resistance at 2,962 and BSE Sensex has support at 9,325 and resistance at 9,710.
Mild losses for the US Market
Dow pares most of its losses in the final hour of trading
US market managed to end modestly higher on Monday, 29 December, 2008. Trading volume remained relatively light due to the ongoing holiday mood in the market. Even after being down by almost 170 points earlier during the day, stocks pared most of their losses and ended modestly lower at Wall Street. Higher crude price and a deal-blowout have acted as negative catalysts in the market. Weakness in the financial sector was noteworthy today.
On Wall Street, the Dow Jones industrial average ended lower by 31 points at 8,483, the Nasdaq closed lower by 20 points at 1,510.9 and the S&P 500 closed lower by 3.4 points at 869.
The indices dropped sharply amid speculation that the merger agreement between Rohm and Haas and Dow Chemical may be renegotiated now because a Kuwaiti petrochemical outfit has put an end to a proposed multibillion dollar joint venture with Dow.
Twenty two of thirty Dow stocks ended in the red today led by GM, Citigroup and JP Morgan. Nine of the ten sectors ended in the red today. Energy was the sole gainer.
Weakness in Cisco Systems, Oracle and Microsoft took the technology sector down today.
In terms of trading volume, 877 million shares changed hands on the New York today at New York Exchange and 446 million trading on the Nasdaq. Declining issues topped advancers by nearly 2 to 1 on the NYSE and by nearly 3 to 1 on Nasdaq.
Crude prices rose for the second consecutive day on Monday, 29 December, 2008. Prices rose as tensions in the Middle East escalated. The relatively weak dollar was also the reason for the higher crude price today. On Monday, crude-oil futures for light sweet crude for February delivery closed at $40.02/barrel (higher by $2.31 or 6%) on the New York Mercantile Exchange. During intra day trading, prices touched a high of $142.05. For this year in 2008, crude prices have dropped 60%.
The strikes by Israel have heightened tensions in the Mid East region, increasing the geopolitical risk premium in the price on fears that there could be some disruption to crude supplies. As per reports, in the Gaza Strip, Israeli air strikes aimed at targets linked to militant group Hamas and it continued for a third day. Hamas said 300 Palestinians have died since Saturday.
At the currency market on Monday, the dollar was down against most major counterparts. The dollar index lost 0.24% today.
Tomorrow, economic data highlights include the October S&P/CaseShiller home price composite will be released followed by the December Chicago Purchasing Manager Index. December consumer confidence is due for release at 10:00 AM ET.
Mid East tension takes precious metal prices higher
Gold and silver prices go up amid thin trading volumes
Bullion metal prices ended higher on Monday, 29 December, 2008 due to the rising tensions in the Middle East, higher crude oil price and also the somber 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 Monday, Comex Gold for February delivery rose $4.1 (0.5%) to close at $875.3 an ounce on the New York Mercantile Exchange. Prices rose to a high of $892 during intra day trading. Last week, gold prices gained 4%. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (15.7%) since then.
This month, gold prices have rose 6.9% till date. 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 are higher by 4.6%. Futures have averaged $865 in 2008. The dollar index has gained 8% 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 Monday, Comex silver futures for March delivery rose 28 cents (2.7%) to $10.81 an ounce. For the month of November, silver prices had gained 5%. Till date, silver has lost 27.3% 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.
As per reports, in the Gaza Strip, Israeli air strikes aimed at targets linked to militant group Hamas and it continued for a third day. Hamas said 300 Palestinians have died since Saturday.
At the currency market on Monday, the dollar was down against most major counterparts. The dollar index lost 0.24% today.
In the crude market on Monday, crude futures went higher earlier today amid tensions in the Middle East. Prices touched a high of $42/barrel but then dropped. Prices, once again shot up and ended around $41/barrel.
The Federal Reserve surprised market earlier this month to save the U.S. economy slashing interest rates to just above zero and promising to try an array of new economic measures to stimulate spending. The central bank's Federal Open Market Committee established a target range for the federal funds rate of zero to 0.25%, effectively cutting its key rate for overnight lending to banks by between 0.75% and 1%.
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 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.
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 243 (1.8%) at Rs 13,635 per 10 grams. Prices rose to a high of Rs 13,790 per 10 grams and fell to a low of Rs 13,428 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed Rs 605 (3.5%) higher at Rs 18,021/Kg. Prices opened at Rs 17,539/kg and rose to a high of Rs 178,402/Kg during the day's trading.
Cummins India
We recommend a buy in Cummins India from a short-term trading horizon. It is evident from the charts of Cummins that it was on an intermediate-term downtrend from its September peak of Rs 330. It found support at Rs 185 on December 11, which is also a 52-week low. Within this downtrend, we notice a formation of falling wedge pattern between late October and late December.
The stock formed a significant trough by consolidating in the range of Rs 190 and Rs 200 recently. On December 29, the stock conclusively broke out of both the falling wedge pattern and intermediate-term down trendline by surging 7 per cent. A minor positive divergence in the daily relative strength index also supports the stock’s trend reversal.
The daily RSI is likely to enter the bullish zone and the weekly RSI is on the verge of entering the neutral region from the bearish zone. Our short-term forecast for the stock is bullish. We expect its current up move to prolong until it hits our price target of Rs 235 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 199.
Market may remain volatile
The market may witness cautious trend as US indices ended on a negative note yesterday and Asian indices are exhibiting upward 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 2880 and 2840 on the downside while on the upper side it may move up to 2950. The Sensex has a likely support at 9400 and may face resistance at 9700.
US indices finished on a negative note on Monday. While the Dow Jones ended in a negative at 8484 declined by 32 points, the Nasdaq down by 20 points at 1510.
Except Infosys and Rediff all the Indian ADRs traded firm on the US bourses. HDFC Bank led the pack with gains of over 9.61% while Wipro, ICICI Bank, Tata Motors, Satyam and MTNL jumped over 6-8% each. Among other gainers Dr Reddy's, VSNL and Patni Computer gained marginally.
Crude oil prices inched higher in the US market, with the Nymex light crude oil for February delivery adding $2.31 to close at $40.02 a barrel. In the commodity space, the Comex gold for February series gained $4.10 to settle at $875.30.
Crude rises
Prices rise by more than 6%
Crude prices rose for the second consecutive day on Monday, 29 December, 2008. Prices rose as tensions in the Middle East escalated. The relatively weak dollar was also the reason for the higher crude price today.
On Monday, crude-oil futures for light sweet crude for February delivery closed at $40.02/barrel (higher by $2.31 or 6%) on the New York Mercantile Exchange. During intra day trading, prices touched a high of $142.05. Prices reached a high of $147 on 11 July but have dropped almost 73% since then. Last week, prices ended lower by 11%. For this year in 2008, crude prices have dropped 54%.
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 strikes by Israel have heightened tensions in the Mid East region, increasing the geopolitical risk premium in the price on fears that there could be some disruption to crude supplies. As per reports, in the Gaza Strip, Israeli air strikes aimed at targets linked to militant group Hamas and it continued for a third day. Hamas said 300 Palestinians have died since Saturday.
After a meeting in Oran, Algeria, the Organization of the Petroleum Exporting Countries agreed to cut 4.2 million barrels a day from its actual September production level of 29.045 million barrels a day on 17 December, 2008. The production cut is effective on 1 January, 2009. Excluding previously announced cuts, OPEC will actually cut its daily production by 2.2 million barrels from current levels. That constitutes its biggest production cut ever.
Against this background, reformulated gasoline for February delivery rose 4 cents to end at 92 cents a gallon and February heating oil added 5 cents to $1.27 a gallon.
February natural gas futures rose 27 cents, or 5%, to $6.08 per million British thermal units.
At the MCX, crude oil for January delivery closed at Rs 1,872/barrel, higher by Rs 25 (1.4%) against previous day's close. Natural gas for January delivery closed at Rs 291.6/mmbtu, higher by Rs 7.1/mmbtu (2.5%).
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