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Tuesday, March 31, 2009
Sensex ends firm; J P Asso. soars 7.26%
The sensitive 30-share index, Sensex ended on a firm note as sustained buying interest was seen across board. Capital goods, healthcare, realty and auto stocks were on the upmove. It opened with a gain of 65.07 points, at 9,633.21 on Tuesday. After few minutes of trading into the positive, the index fell into the negative to bounce back into the positive. The Sensex proceeded to trade further on sustained buying, touching a day`s high of 9,826.22. Meanwhile, opening of European markets also supported the sentiment.
Secondline stocks also performed well. BSE Midcap and Smallcap index rose 2.27% and 1.46% respectively.
Amongst sectoral indices, BSE Capital goods surged over 3%, Healthcare, Realty, auto and Metal rose over 2% each.
European stocks gained as Marks & Spencer Group posted sales that beat analysts` estimates and commodity producers climbed. FTSE 100 gained 199.23 points, or 3.17%, to trade at 3,882.14, CAC 40 advanced 48.89 points, or 1.80%, to trade at 2,768.23 and DAX climbed 58.65 points, or 1.47%, to trade at 4,047.88 (4.28 p.m., IST)
The Sensex ended the day with a gain of 140.36 points, or 1.47% at 9,708.50 after touching a high of 9,826.22 and a low of 9,547.21. The broad-based NSE Nifty climbed 42.80 points, or 1.44% at 3,020.95 after hitting a high of 3,054.30 and a low of 2,966.40
Biggest gainers in the 30-share index were Jaiprakash Associates (7.26%), Tata Steel (5.02%), Tata Motors (4.64%), Reliance Capital (4.63%), Ranbaxy Laboratories (4.58%), and State Bank Of India(4.36%).
On the other hand, Housing Development Finance Corporation (2.71%), NTPC (1.80%), ICICI Bank (1.58%), Hindustan Unilever (0.50%), and Oil & Natural Gas Corporation (0.41%) were the biggest losers in the Sensex.
Overall market breadth was sharply positive. Out of the total 2,542 stocks traded at BSE, 1,551 advanced, 903 declined while 88 remained unchanged.
BSE Bulk Deals to Watch -March 31 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
31/3/2009 530499 A K CAPITAL FIRSTRAND PUBLIC LIMITED COMPANY S 40000 142.00
31/3/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD B 321681 400.64
31/3/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD S 321681 400.87
31/3/2009 532981 ANU LABS KAMAL KUMAR DUGAR AND CO B 61000 260.26
31/3/2009 532995 AVON CORP PANKAJ PRATAPSINH SARAIYA B 135000 5.02
31/3/2009 532719 BL KASHYAP RUANE CUNNIFF AND GOLDFARB INC SUB RUANE ACACIA PARTNERS LP B 150000 129.00
31/3/2009 532719 BL KASHYAP ARISAIG INDIA FUND LIMITED S 446650 129.00
31/3/2009 533026 CHEMCEL SANTOSH SHAHRA B 300000 6.41
31/3/2009 533026 CHEMCEL VIKSIT ENGINEERING LIMITED S 250630 6.50
31/3/2009 532608 DECCAN CHR MORGAN STANLEY AND CO INTERNATIONAL LIMITED PLC S 2375990 47.00
31/3/2009 532858 DECOLIGHT CE CLARUS FINANCE AND SECURITIES B 268159 6.50
31/3/2009 532858 DECOLIGHT CE DIAMANT INVESTMENT AND FINANCE S 268159 6.50
31/3/2009 532760 DEEP INDS ARCADIA SHARE AND STOCK BROKERS PVT LTD B 127516 40.24
31/3/2009 532760 DEEP INDS ARCADIA SHARE AND STOCK BROKERS PVT LTD S 110718 41.20
31/3/2009 508860 DIAMANT INV FANCY INVESTRADE PVT LTD S 10150 54.19
31/3/2009 532022 FILAT FASH VANNA TRADING COMPANY PVT LTD B 36950 69.10
31/3/2009 531137 GEMSTONE INV ANKIT RAJENDRA SANCHANIYA S 23007 22.50
31/3/2009 531137 GEMSTONE INV PREM MOHANLAL PARIKH S 23208 22.50
31/3/2009 500168 GOODYEA INDI MINAL B. PATEL B 345337 95.14
31/3/2009 514238 IKAB SECU IN ABHISHEK BAGRI B 153200 8.34
31/3/2009 514238 IKAB SECU IN MADHU JAJOO S 144300 8.34
31/3/2009 532612 INDOCO REM SPA HOLDINGS PRIVATE LIMITED B 240000 137.00
31/3/2009 532612 INDOCO REM NARSINH INVESTMENT AND FIN PVT LTD S 243364 137.06
31/3/2009 532717 INDOTECHTR RAJASHTAN GLOBAL SECURITIES LTD B 125000 299.99
31/3/2009 532717 INDOTECHTR BLACKSTONE ASIA ADVISORS L.L.C. AC THE INDIA FUND INC S 190628 300.01
31/3/2009 532187 INDUS IND BK GIRDHARILAL V. LAKHI B 2000000 32.65
31/3/2009 532187 INDUS IND BK ASHOK LEYLAND LTD. S 2000000 32.65
31/3/2009 505840 JAIPAN INDUS MADHUKAR B SANAS B 44369 35.08
31/3/2009 530955 KAILASH FICO ALPHA GRAPHIC INDIA LTD B 66899 27.60
31/3/2009 530955 KAILASH FICO VISTA FOOD PRODUCTS PVT LTD S 77814 27.60
31/3/2009 522298 MICRO FORGE ROOPKAMAL KAUR POONIAN B 41700 2.57
31/3/2009 522298 MICRO FORGE DEEPINDER SINGH POONIAN S 41700 2.57
31/3/2009 500370 SALORA INT AYUSH JIWARAJKA B 132598 27.70
31/3/2009 500370 SALORA INT TARUN JIWARAJKA B 114950 28.55
31/3/2009 500370 SALORA INT YES INVESTMENTS B 45949 28.26
31/3/2009 500370 SALORA INT ARPIT CHAURASIA S 107548 27.96
31/3/2009 500370 SALORA INT MAYANK CHAURASIA S 150000 27.60
31/3/2009 500370 SALORA INT DSP MERRILL LYNCH S 49950 27.86
31/3/2009 526981 SHRI BAJRANG CLARUS FINANCE AND SECURITIES B 240092 14.10
31/3/2009 526981 SHRI BAJRANG DIAMANT INVESTMENT AND FINANCE S 240092 14.10
31/3/2009 508976 SPANCO AVL INDIA LEASING B 685000 27.61
31/3/2009 508976 SPANCO INTELLINVOFININDIAPVTLTD S 685000 27.60
31/3/2009 523756 SREI INFRA ARISAIG PARTNERS ASIA PTE LTD S 610000 24.95
31/3/2009 590037 STEEL EXCH CLARUS FINANCE AND SECURITIES B 419236 13.43
31/3/2009 590037 STEEL EXCH DIAMANT INVESTMENT AND FINANCE S 419236 13.43
31/3/2009 513414 SUJANA METAL MORGAN STANLEY MAURITIUS COMPANY LIMITED B 461665 6.18
31/3/2009 513414 SUJANA METAL CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD S 461665 6.18
31/3/2009 532299 TEL EIGHTEEN T ROWE PRICE INT DISC FUN D B 804973 67.50
31/3/2009 532299 TEL EIGHTEEN T ROWE PRICE NEW ASIA FUN D B 1926292 67.50
31/3/2009 532299 TEL EIGHTEEN MORGAN STANELY INST FUND INC EMERGING MKT PORT MSEM S 634100 67.50
31/3/2009 532299 TEL EIGHTEEN MORGAN STANLEY INVESTMENT MGT INC AC MORGAN STANLEY MGMT EMPT S 718476 67.50
31/3/2009 519228 TEMPT.FOODS VENTURE BUSINESS ADVISORS PVT LTD B 435171 29.87
31/3/2009 519228 TEMPT.FOODS BEEJAYINVNFINCONPVTLTD S 131409 29.63
31/3/2009 531249 WELL PACK PA GANDHI MANISHA NAVNEETLAL B 35565 148.48
31/3/2009 531249 WELL PACK PA TUSHAR RAMESHBHAI PATEL B 29500 148.00
31/3/2009 531249 WELL PACK PA SAGARTEX CREATION B 75000 150.20
31/3/2009 531249 WELL PACK PA SHREE GOPAL BAJORIA S 25000 148.90
31/3/2009 531249 WELL PACK PA VISHESHSHAHRA S 149702 149.73
NSE Bulk Deals to Watch - March 31 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
31-MAR-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD,BUY,319648,392.79,-
31-MAR-2009,ABAN,Aban Offshore Ltd.,GENUINE STOCK BROKERS PVT LTD,BUY,206629,396.85,-
31-MAR-2009,ABAN,Aban Offshore Ltd.,P R B SECURITIES PRIVATE LTD,BUY,207227,392.88,-
31-MAR-2009,ANANTRAJ,Anant Raj Industries Limi,SUMMER BUILDERS PVT. LTD.,BUY,2420555,40.00,-
31-MAR-2009,BOMDYEING,Bombay Dyeing & Mfg Co.,SUNEET LAL,BUY,182630,164.87,-
31-MAR-2009,DUNCANSIND,Duncans Industries Ltd,ARYAVART OVERSEAS (P) LTD,BUY,500000,5.75,-
31-MAR-2009,DUNCANSIND,Duncans Industries Ltd,ISHWAR DAYAL KANSAL,BUY,500000,5.75,-
31-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,104385,2084.61,-
31-MAR-2009,GMRINDS,GMR Industries Limited,PRIME INDIA INVESTMENT FUND LTD,BUY,200000,70.56,-
31-MAR-2009,INDUSINDBK,IndusInd Bank Ltd.,KII LTD.,BUY,3503337,31.91,-
31-MAR-2009,INDUSINDBK,IndusInd Bank Ltd.,MODERN GEARS PVT LTD.,BUY,2000000,32.10,-
31-MAR-2009,KOHINOOR,Kohinoor Foods Limited,KAPIL SINGHAL,BUY,150000,52.87,-
31-MAR-2009,PVP,PVP Ventures Limited,VINAY CHILAKAPATI,BUY,1403947,9.93,-
31-MAR-2009,SALORAINTL,Salora International Ltd.,AYUSH JIWARAJKA,BUY,83500,27.87,-
31-MAR-2009,SALORAINTL,Salora International Ltd.,TARUN JIWARAJKA,BUY,105050,27.52,-
31-MAR-2009,SASKEN,Sasken Commu Techno Ltd,ALTIUS SECURITIES TRAD. P.LTD.,BUY,220000,59.67,-
31-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PVT LTD,BUY,1200049,23.53,-
31-MAR-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD,SELL,319648,393.01,-
31-MAR-2009,ABAN,Aban Offshore Ltd.,GENUINE STOCK BROKERS PVT LTD,SELL,206629,397.04,-
31-MAR-2009,ABAN,Aban Offshore Ltd.,P R B SECURITIES PRIVATE LTD,SELL,207227,393.12,-
31-MAR-2009,ANANTRAJ,Anant Raj Industries Limi,QUANTUM M LIMITED,SELL,4420555,40.00,-
31-MAR-2009,BOMDYEING,Bombay Dyeing & Mfg Co.,SUNEET LAL,SELL,193481,165.20,-
31-MAR-2009,BRANDHOUSE,Brandhouse Retails Limite,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,382831,15.54,-
31-MAR-2009,DUNCANSIND,Duncans Industries Ltd,INTELL INVOFIN INDIA PVT LTD,SELL,1000000,5.75,-
31-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,104385,2085.88,-
31-MAR-2009,GMRINDS,GMR Industries Limited,SHRINE FINANCE & INVESTMENTS PVT LTD,SELL,195615,70.52,-
31-MAR-2009,ICSA,ICSA (India) Limited,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,250000,89.20,-
31-MAR-2009,INDUSINDBK,IndusInd Bank Ltd.,AMAS MAURITIUS LTD,SELL,3066065,32.00,-
31-MAR-2009,INDUSINDBK,IndusInd Bank Ltd.,ASHOK LEYLAND LIMITED,SELL,3025000,32.32,-
31-MAR-2009,IOLN,IOL Netcom Limited,INTELL INVOFIN INDIA PVT LTD,SELL,250000,36.40,-
31-MAR-2009,KOHINOOR,Kohinoor Foods Limited,OPUS PROPERTIES LIMITED,SELL,450000,52.86,-
31-MAR-2009,PVP,PVP Ventures Limited,INDIABULLS FINANCIALS SERVICES LTD,SELL,1403947,9.93,-
31-MAR-2009,SALORAINTL,Salora International Ltd.,AYUSH JIWARAJKA,SELL,10500,27.86,-
31-MAR-2009,SALORAINTL,Salora International Ltd.,DSP MERRILL LYNCH,SELL,73483,27.81,-
31-MAR-2009,SALORAINTL,Salora International Ltd.,MAYANK CHAURASIA,SELL,160000,27.75,-
31-MAR-2009,SASKEN,Sasken Commu Techno Ltd,CHANDRASEKAR CHANDRASEKAR SRIKANTH,SELL,219055,59.67,-
31-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PVT LTD,SELL,1233846,23.36,-
31-MAR-2009,SREINTFIN,SREI Infrastructure Finan,ARISAIG PARTNERS - INDIA FUND,SELL,1536704,24.91,-
Post Session Commentary - March 31 2009
Domestic market closed on positive note following firm cues from the Asian markets along with positive European markets. Favorable US index futures also added to the sentiments. The market continued it’s up move during the trading session on buying interest across the counters though; it had trimmed its gains amid volatility during early trading.
The Indian market belled the day on pleasant note after recovering smartly from last session’s losses tracking gains in Asian stocks. However the US stock markets plunged due to concerns about the possible bankruptcy of General Motors and Chrysler after the White House rejected their turnaround plans. However, key stocks turned irregular, as investors were a little cautious on negative sentiments across US market. Further, benchmark indices managed to gain momentum and bounced back from day’s low as buying emerged over the ground. Market continued to gain ground to end the day on positive note led by firm sentiments. From the sectoral front, all indices ended in green. Besides, Capital Goods, Pharma, Reality, Auto, Metal, Teck, IT, FMCG and Bank stocks witnessed most of the buying. Mid Cap and Small Cap stocks also followed the same trend.
Among the Sensex pack 25 stocks ended in green territory and 5 in red. The market breadth indicating the overall health of the market remained strong as 1551 stocks closed in green while 903 stocks closed in red and 88 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 140.36 points at 9,708.50 and NSE Nifty ended up by 42.80 points at 3,020.95. BSE Mid Caps and Small Caps closed with gains of 65.64 and 46.58 points at 2,956.23 and 3,246.63 respectively. The BSE Sensex touched intraday high of 9,826.22 and intraday low of 9,547.21.
Gainers from the BSE Sensex pack are JP Associates (7.26%), Tata Steel (5.02%), Tata Motors (4.64%), Ranbaxy Lab (4.58%), SBI (4.36%), RCom (4.02%), M&M Ltd (3.51%), Hindalco (3.39%), L&T Ltd (3.33%) and ITC Ltd (3.30%).
Losers from the BSE Sensex pack are HDFC (2.71%), NTPC Ltd (1.80%), ICICI Bank (1.58%), HUL (0.50%) and ONGC Ltd (0.41%).
On the global markets front the Asian markets which opened before the Indian market, ended mostly in green. However, Japan’s Nikkei tumbled as investors preferred to offload shares on the last trading day of the fiscal year ahead of the Tankan Survey slated to be released tomorrow. Besides, South Korean data boosts economic recovery hope as industrial output rose 6.8% in February from January and consumer goods sales by 5.0%, each marking the biggest rise in more than a decade. Shanghai Composite, Hang Seng, Straits Times index and Seoul Composite ended higher by 15.17, 119.69, 26.85 and 8.8 points at 2,373.21, 13,576.02, 1,699.99 and 1,206.26 respectively. However, Nikkei 225, lost 126.55 point at 8,109.53.
European markets which opened after the Indian market are trading higher. In Frankfurt the DAX index is trading up by 38.09 points at 4,027.32 and in London FTSE 100 is trading higher by 85.07 points at 3,847.98.
The BSE Capital Goods stocks advanced by (3.29%) or 205.73 points to close at 6,466.03. Major gainers are Siemens Ltd (10.04%), Punj Lloyd (6.80%), Areva (6.14%), ABB Ltd (4.84%) and Crompton Geaves (4.50%).
The BSE Pharma ended up by (2.97%) or 81.56 points at 2,830.11. Gainers are Sunpha Adv (17.04%), Aurobindo Pharma (9.04%), Biocon Ltd (7.96%), Wockhardt Ltd (7.14%) and Piramal Health (7.05%).
The BSE Realty index gained (2.93%) or 44.41 points to close at 1,560.83 on hopes that lower rates will spur housing demand. Gainers are Indiabull real (8.07%), Pheonix Mill (5.62%), Penland Ltd (4.57%), Housing Dev (4.46%) and Mahindra Life (4.26%).
The BSE Auto index also ended higher by (2.44%) or 73.02 points at 3,061.67 on reports the government plans to extend higher depreciation benefit of 50% on commercial vehicles by three months till June 2009. MFR Ltd (6.87%), Apollo Tyre (6.44%), Tata Motors (4.64%), M&M Ltd (3.51%) and Cummins Ind (2.80%) ended in positive territory.
The BSE Metal index closed with increase of (2.43%) or 137.39 points at 5,795.07 after industrial copper increased on the London Metal Exchange. Scrips that gained are JSW Steel (8.54%), Jindal Saw (5.86%), Tata Steel (5.02%), Hindustan Zinc (4.74%) and Hindalco (3.39%).
The BSE Teck index surged (2.32%) or 41.96 points to close at 1,846.83. Main gainers are Financ Tech (6.09%), Aptech Ltd (5.71%), Rolta India (5.40%), Patni Computer (4.42%) and Mphasis Ltd (4.24%).
Ranbaxy Labs closed up by 4.58%. Ranbaxy Laboratories (Ranbaxy) and Daiichi Sankyo Company (Daiichi Sankyo) announced that Ranbaxy will launch Olvance (Olmesartan Medoxomil, antihypertensive), which was originally discovered by Daiichi Sankyo. This follows a licensing agreement between the two companies authorizing Ranbaxy to promote and market the drug in India.
L&T ended higher by 3.33%. The company has received an order worth Rs. 345 crore from the Nuclear Power Corporation of India Ltd (NPCIL) for manufacturing and supplying steam generators.
DLF Ltd gained 1%. The company has determined to deprive its windmill power generation business. According to the company it is a non-core business.
M&M Ltd surged 3.51% as the booking for the company''s newly launched vehicle, Xylo crossed the 12000 level since its launch on 13th January 2009.
Tata Power Company (TPC) went up by 0.17%. The company has commercialised the operation of 250-mega watt (MW) unit 8 of its Trombay Thermal Power Station (TTPS) in Chembur near Mumbai.
Bharat Electronics rose 2.84% after the company said it signed an agreement with Bharat Heavy Electricals to jointly set up a company for solar photo voltaic cell business.
Suzlon Energy advanced 2.54% on report that its overseas unit secured an order for supply of 63 wind turbine generators.
Jet Airways (India) slumped 1.74% after Sahara India moved to court alleging that Jet has partly defaulted in payment relating to the buyout of Sahara Airlines, now JetLite, in April 2007.
First quarterly gain for Sensex since Q4 December 2007
Key benchmark indices managed to clock decent gains in a volatile trade after a nearly 5% fall on the bourses on Monday 30 March 2009. Metal, capital goods and realty stocks rose. Banking, IT stocks and index heavyweights Reliance Industries and Larsen & Toubro came off the day's highs. The BSE 30-share Sensex rose 140.36 points, or 1.47%, up close to 160 points from the day's low but off about 120 points from the day's high.
The S&P CNX Nifty regained the psychological 3,000 level. It had fallen below that level yesterday after a steep slide in equities caused by a setback in global stocks. On Monday, 30 March 2009, stocks around the globe were slammed amid worries about the health of the US auto sector.
Volatility was immense. After opening on a firm note tracking gains in Asian stocks, the market slipped into the red in morning trade. The market recovered in volatile trade later. The market extended gains in afternoon trade tracking firm European markets which opened after Indian market. Volatility was high in mid-afternoon trade. After a sharp surge at about 14:53 IST, the market came sharply off the higher level.
European stocks rebounded on Tuesday from a sharp fall in the previous days as Marks & Spencer Group Plc posted sales that beat analysts' estimates and commodity producers climbed. Key benchmark indices in France, Germany and UK were up by between 1.4% to 2.96%.
Most of the Asian stocks edged up on Tuesday as some investors bet the most painful stretch of corporate earnings damage may be over and bought Asian technology shares. Key benchmark indices in Hong Kong, China, Taiwan, South Korea and Singapore rose by between 0.09% to 1.72%. But Japan's Nikkei stock average was down 1.54% on Tuesday, with trade thin as investors waited for details of a fresh stimulus plan for the economy due out later in the day.
Trading in US index futures showed the Dow could rise 66 points at the opening bell on Tuesday, 31 March 2009. The US markets fell sharply on Monday 30 March 2009 on concerns about potential bankruptcies in the auto sector and worries that some big banks will need a lot more bailout money. The Dow plunged 254.16 points, or 3.3%, to 7,522.02. The S&P 500 index was down 28.41 points, or 3.5%, to 787.53, and the Nasdaq composite index slipped 43.40 points, or 2.8%, to 1,501.80.
Closer home, the fall in headline inflation to a record low has raised expectations of further easing of the monetary policy by the Reserve Bank of India (RBI) to boost demand in the economy. Inflation based on the wholesale prices rose 0.27% in the 12 months to 14 March 2009, a record low and below the previous week's annual rise of 0.44%, data released by the government during trading hours on Thursday, 26 March 2009 showed.
Prime Minister Manmohan Singh on Tuesday, 24 March 2009 said India's economy will revive in a big way in six to seven months as stimulus packages start to take effect. On the same day, Planning Commission Deputy Chairman Montek Singh Ahluwalia scaled down the GDP (gross domestic product) growth projection for the current fiscal to 6.5% from the 7.1% increase estimated by the government earlier during the year, owing to the ongoing global crisis.
Meanwhile, there are signs that the credit flow to businesses is improving. During the fortnight ended 13 March 2009, loans sanctioned by scheduled commercial banks (SCBs), including regional rural banks, went up by Rs 22,423 crore. This was the third fortnight in a row when credit flow went up. Earlier, an extreme risk aversion by banks had chocked credit flow to the industry - the lifeline of business.
Earlier the global financial crisis ends and sooner the risk appetite of global investors and global companies improves, better it will be for India Inc. An increase in risk appetite of global investors/global companies will help Indian firms raise overseas funds required for business expansion. The global financial crisis has chocked the overseas funding route for Indian firms.
Raising funds could become difficult for small and medium enterprises (SMEs) with new lending regulations for banks, popularly known as Basel II norms coming into practice from 1 April 2009. All business units, irrespective of their size, will need to take ratings for their enterprises to secure working capital, loans, and other funds from banks.
Lack of funding has hit a slew of long-gestation infrastructure projects in India. World Bank Chief Economist & Senior Vice-President, Dr Justin Yifu Lin, on 13 March 2009, said if India can improve its infrastructure such as electricity, power, transportation and port facilities, it will be well on its path to achieve a 9-10% growth.
Foreign funds have resumed selling after heavy purchases in the past few days. Foreign institutional investors (FIIs) sold shares worth a net Rs 464.60 crore on Monday, 30 March 2009. Foreign institutional investors (FIIs) sold shares worth a net Rs 270.70 crore on Friday, 27 March 2009, as against a huge inflow of Rs 1317.30 crore on Thursday, 26 March 2009.
The latest sharp fall in the rupee will result in a depreciation in the value of FIIs' equity portfolio to the extent of the fall in the rupee to the extent of the fall in the rupee. A sharp volatility in the rupee may also dissuade fresh buying by foreign funds. The Indian rupee declined sharply on Monday, 30 March 2009, weighed down by the dollar's strength against some currencies and weakness in regional stock markets. The rupee hit a record low beyond 52 per dollar early this month. It had bounced back later. It once again faltered later.
The rupee once again recovered today. The partially convertible rupee was at 50.65 per dollar, stronger than its previous close at 51.17/19. The rupee rose as a rise in Asian stock markets calmed concerns of capital outflows, while the dollar's weakness against some Asian units also helped.
Domestic institutional investors have been absorbing heavy selling by foreign funds witnessed in first two months of calendar year 2009. Mutual funds are likely give support to prices to prop-up year end net asset values (NAVs). Today is the last day of the financial year 2008-09 (FY 2009).
The recent steep volatility in the currency does not augur well for corporate India as it may result in hedging losses for some firms. Meanwhile, the National Advisory Committee on Accounting Standards (Nacas), has reportedly favoured suspending for two years a key rule that requires firms to mark-to-market (MTM) foreign exchange assets and liabilities, a decision which is favourable for corporate India.
Accounting Standard-11 mandates MTM provisioning in the P&L a/cs for forex-related gains and losses. It requires that forex assets & liabilities be recorded at a fair value on the date of preparation of the balance sheet. The demand to suspend this rule, known in accounting circles as AS-11, was made by the Confederation of Indian Industry (CII) on grounds that it could severely distort the earnings of many companies. It was contended that this accounting standard, designed to address normal conditions, should be suspended for the time being, as the present market conditions were not normal.
The upside on the domestic bourses will be capped in the next two months due to political uncertainty ahead of parliamentary election to be held between mid-April 2009 to mid-May 2009. More so at a time when it is highly unlikely that either Congress or BJP will come to power on its own, i.e., without the support of other small/regional parties. Early estimates point a fractured mandate. An alliance led by the Congress party is ahead in pre-poll surveys carried out by several polls.
But in a move which could undermine the chances of a Congress-led alliance getting more seats in the election, RJD supremo Lalu Prasad has announced candidates for 28 of the 40 constituencies in Bihar including from the three seats where Congress has sitting MPs. RJD is one of the key constituents of the current Congress-led UPA government at the Centre.
The Congress, meanwhile, has reportedly sealed a seat-sharing pact with the Nationalist Congress Party (NCP) in the populous Maharashtra state. Relations between the two parties have been prickly as the NCP negotiated with opposition parties to undercut Congress and boost its leader's prime ministerial ambitions. Congress will stand for 26 seats in the state and the NCP for 22. The allies are weighing up their options for a similar deal outside the state.
A latest jolt to the Congress party came from a decision of the regional party in Tamil Nadu viz. the PMK on Thursday, 26 March 2009, to join hands with the All India Anna Dravida Munnetra Kazhagam (AIADMK). PMK is a part of the ruling Congress-led United Progressive Alliance at the centre. The PMK's decision to join AIADMK could give impetus to the Third Front if the PMK and AIADMK join it.
The Congress party on Tuesday 24 March 2009 said it would extend interest relief to farmers and build on the national job guarantee scheme. The focus on populist measures by Congress may weigh on the stock market sentiment especially at a time when the fiscal deficit has risen sharply. Releasing the party manifesto for the election, the Congress party on Tuesday said it would maintain government control over state-run firms in the manufacturing and finance sectors.
Meanwhile, BJP president Rajnath Singh said in an interview to a news agency that the party will speed up foreign investment projects in the country if it wins the parliamentary elections in May 2009. The measure is part of the BJP's election manifesto to be unveiled this week.
Singh said the BJP would be more open to foreign investment than Congress, which was unable to pass major economic reforms and open the economy further up globally due to opposition from leftist allies. Singh said his party would also focus on agriculture, putting more money in the pockets of farmers. More than half of India's 1.1 billion population live in villages.
A group of smaller political parties, including the communists, have formally launched a Third Front in a bid to provide an alternative to the two main parties viz. the Congress and the BJP.
The BSE 30-share Sensex rose 140.36 points, or 1.47%, to 9,708.50. At the day's high of 9,826.22, the Sensex rose 258.08 points in late trade. At the day's low of 9,547.21, the Sensex fell 20.93 points in mid-morning trade.
The S&P CNX Nifty was up 42.80 points or 1.44% to 3,020.95. It hit a high of 3,054.30 and low of 2,966.40.
The BSE clocked a turnover of Rs 3,981 crore, higher than Rs 3,260.81 crore on Monday, 30 March 2009.
Nifty April 2009 futures were at 3016, at a discount of 4.95 points as compared to the spot closing of 3020.95. Turnover in NSE's futures & options (F&O) segment was Rs 48,987.44 crore, lower than Rs 50,238.21 crore on Monday, 30 March 2009.
In the quarter ended 31 March 2009, the Sensex rose 61.19 points or 0.63% from 9,647.31 on 31 December 2008. It was Sensex's first quarterly gain since the December 2007 quarter. In the financial year ended 31 March 2009, the Sensex plunged 5,935.94 points or 37.94% from 15,644.44 on 31 March 2008.
The BSE Mid-Cap index was up 2.27%. It outperformed the Sensex. The BSE Small-Cap index rose 1.46%. It underperformed the Sensex.
The BSE Capital Goods index (up 3.29%), the BSE Healthcare index (up 2.97%), the BSE Realty index (up 2.93%), the BSE Auto index (up 2.44%), the BSE Metal index (up 2.43%), the BSE TECk index (up 2.32%), the BSE IT index (up 2.3%), the BSE FMCG index (up 1.91%), the BSE Bankex (up 1.73%) outperformed the Sensex.
The BSE Consumer Durables index (up 0.52%), the BSE PSU index (up 0.74%), the BSE Oil & Gas index (up 0.87%), the BSE Power index (up 1.44%) underperfomed the Sensex.
The market breadth, indicating the overall health of the market, was strong on BSE with 1,565 shares advancing as compared with 921 that declined. A total of 61 shares remained unchanged.
From the 30 stock Sensex pack 25 stocks gained while the rest fell.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 0.28% to Rs 1,520 on bargain hunting after a slide in the past two days. But the stock came off the day's high of Rs 1,552.40.
Meanwhile, report suggests firm will begin gas production from the Krishna Godavari (KG) basin in 24 to 48 hours, with gas production from the Dhirubhai 6 (D6) block estimated to add close to $2 billion to the company's profit at peak production levels.
RIL's advance tax payment fell 16.47% to Rs 370 crore in Q4 March 2009 over Q4 March 2008.
India's largest oil exploration firm by sales ONGC fell 0.41% to Rs 779.70, off the day's high of Rs 799 as crude oil prices tumbled over 7% on Monday, 30 March 2009. Fall in crude oil prices would result in lower realizations from crude sales for the oil exploration firm. Crude oil for May 2009 delivery tumbled $3.97 or 7.58% to $48.41 a barrel on the New York Mercantile Exchange on Monday, 30 March 2009 after the Wall Street plunged on Obama administration's talk of takeover and bankruptcy for two major US automakers and bank rescues in Europe prompted investors to book profits after a recent run-up.
The strengthening of dollar against euro was also one of the reasons for the sharp fall in crude oil prices. The dollar strengthened to its highest level against the euro in more than a week, limiting the appeal of commodities as an investment.
Shares of oil marketing companies rose after the government recently issued oil bonds worth Rs 10,000 crore to compensate them for under-recoveries on sale of petroleum products at a controlled price during the current financial year. BPCL and HPCL rose by between 2.31% and 2.34% respectively.
Indian Oil Corporation fell 0.09% after company said on Wednesday, 25 March 2009 the government has approved a proposal to absorb its subsidiary Bongaigaon Refinery & Petrochemicals (BRPL). Indian Oil will issue four shares for every 37 shares in BRPL.
Indian Oil Corporation has been issued oil bonds worth Rs 5,817.27 crore, while Bharat Petroleum Corporation has been issued bonds worth Rs 2,144.32 crore. Hindustan Petroleum Corporation has got bonds worth Rs 2,038.41 crore.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 3.33% to Rs 672.65. However, the stock came off the day's high of Rs 689.80. It has bagged an order worth Rs 1100 crore in electrical construction sector.
Other capital goods stocks, Crompton Greaves, Bharat Heavy Electricals Punj Lloyd, Praj Industries, Thermax, ABB, rose by between 0.56% to 6.8%.
Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. DLF, Housing Development & Infrastructure, Indiabulls Real Estate and Unitech rose by between 1% to 8.07%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
Metals stocks gained as industrial copper rose on the London Metal Exchange. Steel Authority of India, Tata Steel, National Aluminum Company, Sterlite Industries, Hindustan Zinc, and Hindalco Industries, rose by between 1.37% to 5.02%.
Banking stocks rose in choppy trade on hopes a further fall in interest rates may boost lending growth and on recovery in bond prices. India's largest bank in terms of assets and branch network State Bank of India rose 4.36% to Rs 1,066.35 off the day's high of Rs 1,083.65. It hit a low of Rs 995.30. Its advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.
India's largest private sector bank by net profit ICICI Bank fell 1.58% to Rs 332.60. It hit a high of Rs 345.90 and a low of Rs 314.50. Its American depository receipts (ADR) fell 13.27% on Monday, 30 March 2009. ICICI Bank's advance tax payment remained unchanged at Rs 250 crore in Q4 March 2009 when compared to Q4 March 2008.
India's second largest private sector bank by operating income HDFC Bank rose 2.42% to Rs 967.85. The stock came off a high of Rs 985. It hit a low of Rs 904.10. Its ADR fell 8.49% on Monday. Its advance tax payment rose 10% to Rs 275 crore in Q4 March 2009 over Q4 March 2008.
India's biggest dedicated housing finance firm by operating income HDFC fell 2.71% to Rs 1,411.20. It announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective Wednesday 25 March 2009.
Bond prices which had tumbled in the past few days recovered today on speculation yields near the highest in four months attracted investors and on speculation the central bank's plan to purchase debt in the coming months will help improve demand for the securities. Bond yields and bond prices are inversely related.
The yield on the 6.05% note due February 2019 declined nine basis points to 6.99% as of 11:34 IST in Mumbai. Ten-year yields have surged 1.74 percentage points since 31 December 2008. The Reserve Bank of India said last week it will buy as much as Rs 80000 crore ($16 billion) of existing government debt via auctions in the next six months. It may be recalled that banks made huge treasury gains in the December 2008 quarter following a surge in bond prices.
Outsourcing focussed IT firms rose on bargain hunting after a sharp slide in the past two trading sessions. India's second largest software services exporter Infosys Technologies rose 2.02% to Rs 1324.10 off the day's high of Rs 1,340. Its ADR fell 0.15% overnight. Recent reports said it may win a large IT project from the government, which will run on a transaction-based pricing model, similar to the passport processing contract its larger rival Tata Consultancy Services (TCS) won last year. The contract is among the many large IT contracts that are up for bidding from government departments or public sector undertakings, reports suggest.
India's third largest software services exporter, Wipro rose 1.78% even as its ADR fell 3.78% on Monday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).
India's largest software services exporter by sales TCS rose 3.3% to Rs 540 off the day's high of Rs 544. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.
Financial Technologies (India) spurted 6.09% to Rs 619.90 on reports the company is set to revive an initial public offer of its unit Multi Commodity Exchange.
Commercial vehicle makers rose on reports the government plans to extend higher depreciation benefit of 50% on commercial vehicles by three months till June 2009. Ashok Leyland and Tata Motors rose by between 2.26% to 4.64%. The higher depreciation rate translates into lower tax liabilities and lower insurance premiums for buyers of commercial vehicles.
India's largest tractor maker by sales Mahindra & Mahindra rose 3.51% after booking for the company's new vehicle Xylo crossed the 12000 mark since its launch on 13 January 2009.
Some FMCG stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. United Spirits, Tata Tea, Nestle India, Britannia Industries and ITC rose by between 0.42% to 4.2%. But India's largest FMCG firm by sales Hindustan Unilever fell 0.5%. The company's advance tax payment rose 30% to Rs 130 crore in Q4 March 2009 over Q4 March 2008.
Some healthcare stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Cipla, Dr Reddy's Laboratories, Ranbaxy Laboratories, Cadila HealthCare, Wockhardt, Biocon rose by between 0.29% to 7.96%.
Sun Pharmaceutical Industries rose 2.79% after the company on Monday 30 March 2009 said it has received approval from the US Food and Drug Administration to sell topiramate tablets, used for the treatment of seizures.
Kalpataru Power Transmission jumped 0.77% on bagging an overseas orders worth Rs 400 crore.
Airline stocks fell on reports aviation turbine fuel (ATF) prices will go up by at least 15% from 1 April 2009. Jet Airways and SpiceJet fell 1.74% and 0.37% respectively while Kingfisher Airlines rose 0.45%. ATF accounts for 50% of an airline's operational expenditure.
Tea shares rose on reports prices of Indian teas are likely to rise in the coming months. Warren Tea, Asian Tea & Exports, Mcleod Russel, Assam Company and Harrisons Malayalam roseby between 5.77% to 20%.
Unitech clocked the highest volume of 1.56 crore shares on BSE. GVK Power & Infrastructure (1.39 crore shares), Cals Refineries (1.2 crore shares), Reliance Natural Resources (1.13 crore shares) and ICICI Bank (1.05 crore shares) were the other volume toppers in that order.
ICICI Bank clocked the highest turnover of Rs 351.08 crore on BSE. Reliance Industries (Rs 254.60 crore), State Bank of India (Rs 169.61 crore), Reliance Infrastructure (Rs 162.78 crore) and Reliance Capital (Rs 146.50 crore) were the other turnover toppers in that order.
Market may exhibit strong volatility
After witnessing a strong correction yesterday, the market is likely to remain uncertain on the back of a strong intra-day volatile moves. However, firm Asian indices in current trades may release some pressure from local indices in morning trades. Among the local indices, in the near term the Nifty could test 3030 on the upside while on the downside the index may get support at 2930. The Sensex is likely to get support at 9400 and may face resistance at 9700.
US indices declined sharply on Monday, as worries about the auto and bank industries sent investors running after the recent rally.
The Dow Jones lost 254 points to close at 7522 and the Nasdaq to end 43 points lower at 1502.
All the Indian ADR's fell on the US bourses. ICICI Bank was the biggest loser and dropped over 13.27% followed Tata Motors declined 9.90%, while HDFC Bank, Rediff, Satyam, Wipro. Dr Reddy, MTNL, Patni Computers and VSNL were down around 2-8% each. However, Infosys closed in negative territory with marginal loss.
Crude oil prices lost sharply, with the Nymex light crude oil declined $3.97 at $48.41 per barrel. In the metals segment, the Comex gold for June series lost $7.60 to settle at $917.70 an ounce.
Market may recover
The market may recover after Monday's (30 March 2009) near 5% slide after most Asian stocks rose after the previous day's steep fall. Buying by mutual funds to prop up year-end net asset values (NAVs) may also support the market. Today is the last day of the financial year 2008-09 (FY 2009). However, data showing resumption of selling by foreign funds after heavy buying in the past few days may weigh on the sentiments.
Expectations of a further easing of the monetary policy by the Reserve Bank of India remain, with headline inflation at record low. Inflation based on the wholesale prices rose 0.27% in the 12 months to 14 March 2009, a record low and below the previous week's annual rise of 0.44%, data released by the government during trading hours on 26 March 2009 showed.
Asian shares were mostly higher on Tuesday, 31 March 2009, despite continued concerns about the US automobile and financial sectors. Japan's Nikkei 225 was up 0.9% after dropping 4.5% Monday, helped by some pension fund buying as the fiscal year there drew to a close.
Trading in US index futures showed the Dow could rise 56 points at the opening bell on Tuesday, 31 March 2009.
Closer home, foreign funds sold shares worth a net Rs 452.32 crore on Monday, as the provisional data released by the stock exchanges. Foreign institutional investors (FIIs) sold shares worth a net Rs 270.70 crore on Friday, 27 March 2009, as against a huge inflow of Rs 1317.30 crore on Thursday, 26 March 2009.
The latest sharp fall in the rupee will result in a depreciation in the value of FIIs' equity portfolio to the extent of the fall in the rupee. A sharp volatility in the rupee may also dissuade fresh buying by foreign funds. The Indian rupee declined sharply on Monday, 30 March 2009, weighed down by the dollar's strength against some currencies and weakness in regional stock markets. The rupee hit a record low beyond 52 per dollar early this month. It had bounced back later. It once again faltered later.
Meanwhile, the market sentiment may improve after BJP president Rajnath Singh said in an interview to a news agency that the party will speed up foreign investment
projects in the country if it wins the parliamentary elections in May 2009. The measure is part of the BJP's election manifesto to be unveiled this week.
Singh said the BJP would be more open to foreign investment than Congress, which was unable to pass major economic reforms and open the economy further up globally due to opposition from leftist allies. Singh said his party would also focus on agriculture, putting more money in the pockets of farmers. More than half of India's 1.1 billion population live in villages.
Bullion metals end further lower
Strong dollar continues to take shine off precious metals
Bullion metal prices ended lower for second straight day on Monday, 30 March, 2009. The strong dollar was the main reason for precious metals ending lower.
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 April delivery fell $7.7 (0.8%) to close at $915.5 an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 3.5%. For the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%. Year to date, gold prices are higher by 12.8%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (7.9%) since then.
On Monday, Comex silver futures for May delivery fell 23 cents (1.7%) to end at $13.033 an ounce. In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 20% this year. For 2008, silver had lost 24%.
In the currency market on Monday, the dollar moved higher against most major rivals as investors panicked amid fears in the US auto industry.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last 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.
Prior to 2008, 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 April delivery closed higher by Rs 21 (0.14%) at Rs 15,121 per 10 grams. Prices rose to a high of Rs 15,321 per 10 grams and fell to a low of Rs 15,030 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 153 (0.7%) lower at Rs 22,025/Kg. Prices opened at Rs 22,215/kg and fell to a low of Rs 21,837/Kg during the day's trading.
Nifty April 2009 futures below 3000
Turnover declines
Nifty April 2009 futures were at 2980.80, at a premium of 2.65 points as compared to the spot closing of 2978.15. Turnover in NSE's futures & options (F&O) segment was Rs 50,238.21 crore, lower than Rs 51,171.38 crore on Friday, 27 March 2009.
Reliance Industries April 2009 futures were at premium at 1518.80 compared to the spot closing of 1516.45.
ICICI Bank April 2009 futures were at premium at 339.20 compared to the spot closing of 338.10.
State Bank of India April 2009 futures were near spot price at 1022.20 compared to the spot closing of 1022.35.
In the cash market, the S&P CNX Nifty lost 130.50 points or 4.20% at 2978.15.
Crude plunges
Demand concerns and strong dollar took crude prices substantially lower on Monday, 30 March, 2009. Many traders had anticipated that crude's recent rally was overdone and hence ended lower for the day. Prices closed below $50 after almost two weeks of rally.
On Monday, crude-oil futures for light sweet crude for May delivery closed at $48.41/barrel (lower by $3.97 or 7.6%) on the New York Mercantile Exchange. Last week, crude ended higher by 0.6%. For the month of February, crude prices had ended higher by 1.5%.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 63% since then. Year to date, in 2009, crude prices are higher by 10%. On a yearly basis, crude prices are lower by 51%.
In the currency market on Monday, the dollar moved higher against most major rivals as investors panicked amid fears in the US auto industry. The dollar index gained 0.8% today.
The U.S government's auto task force determined that neither General Motors nor privately held Chrysler had submitted viable restructuring plans and also indicated bankruptcy may be required for the flagging auto companies. This issue kept selling pressure intense in the Wall Street today and stocks lingered in the red for the entire day.
Also at the Nymex on Monday, April reformulated gasoline fell 10.8 cents, or 7.3%, to $1.3799 a gallon and April heating oil dropped 9.02 cents, or 6.3%, to $1.3426 a gallon.
Natural gas for April delivery gave up 3.82 cents, or 8.8%, to $3.947 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for March delivery closed at Rs 2,498/barrel, lower by Rs 158 (5.9%) against previous day's close. Natural gas for April delivery closed at Rs 194.3/mmbtu, higher by Rs 0.5/mmbtu (0.25%).
Monday, March 30, 2009
BSE Bulk Deals to Watch - March 30 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
30/3/2009 530499 A K CAPITAL FIRSTRAND PUBLIC LIMITED COMPANY S 53507 141.25
30/3/2009 532910 ANIL PRODUCT MINESHCHANDRAKANTSHAH B 55867 46.97
30/3/2009 532995 AVON CORP PANKAJ PRATAPSINH SARAIYA B 117000 4.94
30/3/2009 532719 BL KASHYAP ARISAIG PARTNERS ASIA PTE LTD S 400000 129.75
30/3/2009 502865 FORBES & CO DEUTESCHE INT TRUST CORP MAURITIUS LTD AC INDIA DISCOVERY FUND B 400000 360.00
30/3/2009 502865 FORBES & CO SPS CAPITAL AND MONEY MNG SERV.P.LTD S 277691 360.01
30/3/2009 531137 GEMSTONE INV BHUPESH RATHOD S 59000 22.75
30/3/2009 522059 INDAGE VIN INDIA MAX INVESTMENT FUND LTD. B 200000 49.45
30/3/2009 522059 INDAGE VIN SICOM LTD S 218620 49.45
30/3/2009 531898 SANGUINE MD BHROSEMAND COMMODITIES PVT. LTD. S 84170 3.02
30/3/2009 508961 SHRICON INDU SWASTIKA FIN LEASE LTD B 49150 55.55
30/3/2009 508961 SHRICON INDU NANDKISHORE AGRAWAL S 49150 55.55
30/3/2009 508976 SPANCO AVL INDIA LEASING B 400000 25.87
30/3/2009 508976 SPANCO INTELLINVOFININDIAPVTLTD S 400000 25.87
30/3/2009 531874 VENUS VENT CHANDRA SHEKHAR SUNIL BHATT B 32311 27.78
30/3/2009 531249 WELL PACK PA GANDHI MANISHA NAVNEETLAL B 36645 141.56
30/3/2009 531249 WELL PACK PA TUSHAR RAMESHBHAI PATEL B 29950 141.08
30/3/2009 531249 WELL PACK PA SHREE GOPAL BAJORIA S 25000 143.10
30/3/2009 514162 WELSPUN INDI WELSPUN TRADING LIMITED B 1543262 21.42
30/3/2009 514162 WELSPUN INDI CRESENT TRADING PRIVATE LIMITED S 1543262 21.42
NSE Bulk Deals to Watch - March 30 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
30-MAR-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD,BUY,228917,399.87,-
30-MAR-2009,ABAN,Aban Offshore Ltd.,P R B SECURITIES PRIVATE LTD,BUY,201041,409.47,-
30-MAR-2009,ALOKTEXT,Alok Industries Limited,HI GROWTH CORPORATE SERVICES PRIVATE LIMITED,BUY,1185606,12.64,-
30-MAR-2009,BHARATRAS,Bharat Rasayan Ltd,WELDON FINCAP PVT LTD,BUY,110900,37.75,-
30-MAR-2009,BOMDYEING,Bombay Dyeing & Mfg Co.,SUNEET LAL,BUY,341502,155.73,-
30-MAR-2009,BRANDHOUSE,Brandhouse Retails Limite,GURU KRUPA INVESTMENTS,BUY,300000,15.95,-
30-MAR-2009,BRANDHOUSE,Brandhouse Retails Limite,MANGHNANI DURU BHAGWANDAS,BUY,384225,15.96,-
30-MAR-2009,GMRFER,GMR Ferro Alloys & Indust,PRIME INDIA INVESTMENT FUND LTD,BUY,102000,25.23,-
30-MAR-2009,GMRINDS,GMR Industries Limited,PRIME INDIA INVESTMENT FUND LTD,BUY,300000,73.75,-
30-MAR-2009,IOLN,IOL Netcom Limited,VASANT RAMU JADHAV,BUY,287000,38.00,-
30-MAR-2009,JAYAGROGN,Jayant Agro Organics Ltd.,VED VIJAYSINH VIRCHAND,BUY,75000,33.50,-
30-MAR-2009,JINDALSAW,Jindal Saw Limited,VALIANT MAURITIUS PARTNERS OFFSHORE LTD,BUY,330000,175.97,-
30-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PVT LTD,BUY,1858752,21.33,-
30-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,AMBIT SECURITIES BROKING PVT. LTD.,BUY,1452236,21.91,-
30-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,P R B SECURITIES PRIVATE LTD,BUY,1117814,22.76,-
30-MAR-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD,SELL,228917,400.15,-
30-MAR-2009,ABAN,Aban Offshore Ltd.,P R B SECURITIES PRIVATE LTD,SELL,201041,409.28,-
30-MAR-2009,ALOKTEXT,Alok Industries Limited,CALEDONIA INVESTMENTS PLC,SELL,1422000,12.72,-
30-MAR-2009,ALOKTEXT,Alok Industries Limited,HI GROWTH CORPORATE SERVICES PRIVATE LIMITED,SELL,1186106,12.64,-
30-MAR-2009,BHARATRAS,Bharat Rasayan Ltd,SHWETA GUPTA,SELL,110900,37.75,-
30-MAR-2009,BOMDYEING,Bombay Dyeing & Mfg Co.,SUNEET LAL,SELL,342991,156.28,-
30-MAR-2009,BRANDHOUSE,Brandhouse Retails Limite,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,575000,16.31,-
30-MAR-2009,GMRFER,GMR Ferro Alloys & Indust,SHRINE FINANCE & INVESTMENTS PVT LTD,SELL,102000,25.20,-
30-MAR-2009,GMRINDS,GMR Industries Limited,SHRINE FINANCE & INVESTMENTS PVT LTD,SELL,183852,73.75,-
30-MAR-2009,IOLN,IOL Netcom Limited,VENKATESHWARA SECURITIES PVT LTD,SELL,287000,38.00,-
30-MAR-2009,JAYAGROGN,Jayant Agro Organics Ltd.,DEEPAK VIJAYSINH VED,SELL,75000,33.50,-
30-MAR-2009,KINETICMOT,Kinetic Motor Company Ltd,CITICORP FINANCE (INDIA) LIMITED,SELL,130000,11.70,-
30-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PVT LTD,SELL,1858752,21.59,-
30-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,AMBIT SECURITIES BROKING PVT. LTD.,SELL,1409941,21.90,-
30-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,P R B SECURITIES PRIVATE LTD,SELL,1095014,22.78,-
Sensex below 9600
Sensex that had surged over 1,100 points during the last five sessions witnessed a major sell-off today. Tracking weak Asian markets, Sensex was 146 points down at 9902 at the opening bell, and continued to fall all through the day. After plunging below 9600 mark to touch the day's low of 9521, Sensex moved within a range though with a negative bias. A spell of panic selling towards the close led Sensex close 480 points down at 9568 whereas Nifty shed 131 points to close at 2978.
Except consumer durables and health care that were marginally up, all other sectoral indices posted losses for the day. Banking and metals sectors were the worst hit, down 7-8% each, information technology, teck , capital goods power and public sector units sectors were down over 3-4% each.
Market breadth, the number of advancing shares to declining shares, was negative. Of the 2,473 stocks traded on BSE, 1,471 stocks declined, whereas 904 stocks advanced. Ninety eight stocks ended unchanged. Most of the index heavyweights ended in the red. JP Associates tumbled 12.34% at Rs78.50. ICICI Bank at Rs337.95, Tata Steel at Rs196.15, Reliance Infrastructure at Rs502.45, DLF at Rs165.55, State Bank of India at Rs1,022 and Tata Consultancy Services at Rs522.75 fell by around 9-12% each. Among other major losers, Hindalco Industries dropped 8.81% at Rs50.20, Tata Motors lost 8.74% at Rs172.30, HDFC fell 8.72% at Rs1,450.55 and Reliance Communications declined by 8.70% at Rs167.85. National Thermal Power Corporation, however, bucked the downtrend and gained 0.80% at Rs183.50. Sun Pharmaceutical Industries was up 0.25% at Rs1,079.50.
Banking stocks were among the worst hit. Kotak Bank dropped 11.02% at Rs268.45, Punjab National Bank slumped 9.97% at Rs397.15, Yes Bank shed 9.59% at Rs49.95 and Axis Bank slipped by 7.84% at Rs397.40. Bank of Baroda, Federal Bank, Union Bank, Indian Overseas Bank, Karnataka Bank, Bank of India and Oriental Bank of Commerce also ended weak.
Over 1.63 crore shares of Cals Refineries changed hands on BSE followed by Reliance Natural Resources (1.31 crore shares), Unitech (1.21 crore shares), S Kumars (98.56 lakh shares) and Suzlon Energy (79 lakh shares).
Post Session Commentary - March 30 2009
Indian market today dived deeply into red to close with huge losses along with other Asian counterparts. Profit booking together with political worries ahead of parliamentary elections weighed on sentiments. Besides, weak European markets also fueled to the negative attitude. BSE Sensex tanked around 5% to close below 9,600 level and NSE Nifty lost more than 4% to end lower than 3,000 mark.
The market opened sharply below its last closing figure mirroring unfavorable cues from global markets. The US stock markets ended lower on Friday on account of profit booking at the end of week. US Stocks retreated as the heads of JPMorgan Chase and Bank of America said results worsened in March and lower oil and metal prices pulled down commodity producers. Further, domestic bourses continued to southbound on huge selling pressure over the ground. Profit taking mainly led by weak US index futures contributed to hit the investors’ sentiments. During last trading hours, market lost further ground to widen its losses led by all round selling. Last week market gained solid ground tracking positive cues from the markets all over the world. From the sectoral front, Bank, Metal, Reality, IT, Teck, Capital Goods and Power stocks observed most of the selling from these baskets. Mid Cap and Small Cap stocks also stayed out of favor. However, Consumer Durables and Pharma stocks remained in limelight as contributed most of the buying.
Among the Sensex pack 28 stocks ended in red territory and 2 in green. The market breadth indicating the overall health of the market remained weak as 1471 stocks closed in red while 904 stocks closed in green and 98 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 480.35 points at 9,568.14 and NSE Nifty ended down by 130.50 points at 2,978.15. BSE Mid Caps and Small Caps closed with losses of 43.57 and 38.06 points at 2,890.59 and 3,200.05 respectively. The BSE Sensex touched intraday high of 9,902.35 and intraday low of 9,520.96.
Losers from the BSE Sensex pack are JP Associates (12.34%), ICICI Bank (12.27%), Tata Steel (12.24%), Reliance Infra (11.43%), DLF Ltd (9.34%), SBI (9.18%), TCS Ltd (9.12%), Hindalco (8.81%), Tata Motors (8.74%), HDFC (8.72%), RCom (8.70%), Sterlite Industries (6.18%), HDFC Bank (5.18%) and BHEL (4.98%).
Gainers from the BSE Sensex pack are NTPC Ltd (0.80%) and Sun Pharma (0.25%).
On the global markets front the Asian markets which opened before the Indian market, ended in deep red tracking Wall Street losses overnight. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite lost 16.40, 663.17, 390.89, 72.52 and 40.05 points at 2,358.04, 13,456.33, 8,236.08, 1,673.14 and 1,197.46 respectively.
European markets which opened after the Indian market are trading lower. In Frankfurt the DAX index is trading down by 146.16 points at 4,057.39 and in London FTSE 100 is trading lower by 94.63 points at 3,804.22.
The BSE Bank stocks under performed the benchmark indices as dropped by (8.58%) or 414.56 points to close at 4,414.47 on profit booking after a recent surge. Major losers are ICICI Bank (12.27%), Kotak Bank (11.02%), Punjab National Bank (9.97%), Yes Bank (9.59%) and SBI (9.18%).
The BSE Metal index closed with decrease of (7.41%) or 452.41 points at 5,657.68. Scrips that lost are Tata Steel (12.24%), Welspan Gujarat SR (10.35%), Steel Authority (9.24%), Hindalco (8.81%) and Jindal Saw (8.47%).
The BSE Reality ended down by (7.24%) or 118.32 points at 1,516.42. Losers are Housing Development (9.57%), DLF Ltd (9.34%), Indiabull Real (6.95%), Ansal Infra (6.60%) and Unitech Ltd (6.13%).
The BSE IT index lost (4.43%) or 103.54 points to close at 2,234.26 on fear of slashing down of prospective orders for India. Losers are TCS Ltd (9.12%), Rolta India (5.94%), NIIT Ltd (5.90%), Wipro Ltd (4.74%) and Tech Mahindra (4.67%).
The BSE Teck index ended lower by (3.94%) or 74.04 points to close at 1,804.87. Main losers are TCS Ltd (9.12%), RCom (8.70%), UTV Software (6.04%), Rolta India (5.94%) and NIIT Ltd (5.90%).
The BSE Capital Goods index also ended lower by (3.81%) or 247.87 points at 6,260.80 on worries that a slumping economy might restrict prospective orders. Suzlon Energy (9.12%), Havells India (7.59%), Reliance Industrial Infra (7.09%), Punj Lloyd (5.53%) and Gammon Indi (5.36%) ended in negative territory.
Cairn India fell 6.79% to Rs. 181.90 as crude oil prices dropped. Fall in crude oil prices would result in lower realizations from crude sales for the oil exploration firm.
Larsen & Toubro shed by 4.27% to despite the company won an order worth Rs. 345 crore to manufacture steam generators for Nuclear Power Corporation of India.
Unichem Laboratories lost 2.33% to Rs. 160.80 despite it received approval from US Food & Drug Administration (FDA) for Topiramate tablets in the strengths of 25 mg, 50 mg and 100 mg.
Asian Paints Ltd increased by 2.38%. The company has informed that the Board of Directors of the Company at its meeting held on March 28, 2009, has approved a Scheme of Amalgamation (the Scheme) of Technical Instruments Manufacturers (India) Ltd (a wholly owned subsidiary of the Company) with the Company under the provisions of Company Act, 1956.
Sun Pharmaceutical Industries gained 0.25% as it announced that USFDA has granted an approval for its abbreviated new drug application (ANDA) to market generic Topamax, topiramate tablets.
Financial Technologies ended up by 3.05%. The company is in talks with the London Stock Exchange to sell a minority stake in its forthcoming stock exchange.
Sensex sheds nearly 5% on weak global equities, political uncertainty
Profit taking after a recent solid surge accelerated a decline on the domestic bourses triggered by weak global equities. Banking, metal and realty stocks tumbled. The BSE 30-share Sensex tanked 480.35 points, or 4.78%. The S&P CNX Nifty fell below the psychological 3,000 mark. Political uncertainty ahead of parliamentary elections also weighed on the market.
The market had surged last week tracking a solid rally in global stocks. A steep fall in the India's inflation also raised expectations of a further easing of the monetary policy by the Reserve Bank of India. The 30-share BSE Sensex jumped 1,081.81 points or 12.06% to 10,048.49, in the week ended Friday, 27 March 2009. The BSE Sensex jumped 1888.09 points or 23.13% in twelve trading sessions to 10,048.49 on 27 March 2009 from a three-year closing low of 8,160.40 on 9 March 2009.
European markets which opened after Indian market dropped on Monday, 30 March 2009, with investors focusing on automakers and banks, as Washington rejected restructuring plans for General Motors and Chrysler, while Spain announced its first banking bailout since the beginning of the crisis. Key benchmark indices in France, Germany and UK were down by between 2.06% to 3.1%.
Asian markets which opened before Indian markets declined for the first time in six days, paring the regional benchmark index's best month since 1999, as US Treasury Secretary Timothy Geithner said some banks will need large amounts of government aid. Key benchmark indices in Hong Kong, South Korea, China, Singapore and Taiwan were down by between 0.69% to 4.78%.
Geithner announced this month a plan to shore up the nation's banks with a public-private partnership to finance the purchase of illiquid real-estate assets.
JPMorgan Chase & Co.'s Chief Executive Officer Jamie Dimon said in an interview with CNBC that March 2009 was a little tougher than January 2009 and February 2009 for the bank. Kenneth Lewis, Bank of America Corp.'s CEO, said the lender's trading book wasn't as good as in the first two months. The two said earlier this month that their banks were profitable through February 2009, excluding taxes and provisions, contributing to advances in financial shares.
Japan's Nikkei average slipped 4.53% on Monday, as investors locked in profits after last week's sharp rally, with bank shares such as Mitsubishi UFJ Financial Group falling following a drop in their US counterparts late last week. Japanese industrial production fell 9.4% in February 2009 from the previous month, government data showed today, the longest streak of declines since 2001.
The decline in Asian shares accentuated as the US said General Motors Corp. and Chrysler LLC must overhaul recovery plans to justify further taxpayer aid.
Meanwhile, hopes for a coordinated agreement on a new stimulus plan to help revive the global economy at this week's Group of 20 nations summit appear diminished ahead of the formal start of the meeting, according to reports. UK Chancellor Alistair Darling downplayed chances that leaders will unveil a completely new stimulus package in an interview Sunday with the British Broadcast Corporation.
The Telegraph reported Monday that British Foreign Secretary David Miliband had downplayed a leaked draft of a G20 communique that contained reference to a coordinated $2 trillion spending boost. Miliband was cited in the report as saying that the figures in the draft referred to spending packages already underway.
Trading in US index futures indicated the Dow could fall 171 points at the opening bell on Monday, 30 March 2009. Investors should sell US stocks because earnings are likely to keep weakening, according to a Morgan Stanley report. The 30 members of the Organization for Economic Cooperation and Development are likely to see their economies contract by 4.2% this year, the group's Secretary General Angel Gurria said on Friday, 27 March 2009.
US stocks ended a relatively good week on a negative note on Friday 27 March 2009 as investors locked in profits and banking shares took a hit. The Dow plunged 148.38 points, or 1.9%, to 7,776.18. The S&P 500 index declined 16.92 points, or 2%, to 815.94 and the Nasdaq composite index slipped 41.80 points, or 2.6%, to 1,545.20.
Closer home, the fall in headline inflation to a record low has raised expectations of further easing of the monetary policy by the Reserve Bank of India (RBI) to boost demand in the economy. Inflation based on the wholesale prices rose 0.27% in the 12 months to 14 March 2009, a record low and below the previous week's annual rise of 0.44%, data released by the government during trading hours on Thursday, 26 March 2009 showed.
Retail inflation is, however, ruling firm even as the whole sale price inflation has touched a record low. Retail inflation as measured by the Consumer Price Index for farm labourer (CPI-AL) and rural labourers (CPI-RL) eased to 10.79% in February 2009, a marginal dip from 11.62% and 11.35% respectively in January 2009. CPI-AL and CPI-RL were at 6.38% and 6.11% in corresponding period last year.
Annual inflation for food articles remains high even though it has eased from the 10 year high of 11.64% witnessed in first week of January 2009. Inflation for food articles stood at 7.35% for first week of March 2009 with double-digit price rise for many items including sugar and gur, pulses and cereals. At the time of announcing a reduction in key short-term interest rates, the RBI said early this month that though consumer price inflation has remained at elevated level due to increase in primary articles prices, it is expected to decline with a lag effect due to sharp fall in the wholesale price inflation.
Prime Minister Manmohan Singh on Tuesday, 24 March 2009 said India's economy will revive in a big way in six to seven months as stimulus packages start to take effect. On the same day, Planning Commission Deputy Chairman Montek Singh Ahluwalia scaled down the GDP (gross domestic product) growth projection for the current fiscal to 6.5% from the 7.1% increase estimated by the government earlier during the year, owing to the ongoing global crisis.
Meanwhile, there are signs that the credit flow to businesses is improving. During the fortnight ended 13 March 2009, loans sanctioned by scheduled commercial banks (SCBs), including regional rural banks, went up by Rs 22,423 crore. This was the third fortnight in a row when credit flow went up. Earlier, an extreme risk aversion by banks had chocked credit flow to the industry - the lifeline of business.
Earlier the global financial crisis ends and sooner the risk appetite of global investors and global companies improves, better it will be for India Inc. An increase in risk appetite of global investors/global companies will help Indian firms raise overseas funds required for business expansion. The global financial crisis has chocked the overseas funding route for Indian firms.
Raising funds could become difficult for small and medium enterprises (SMEs) with new lending regulations for banks, popularly known as Basel II norms coming into practice from 1 April 2009. All business units, irrespective of their size, will need to take ratings for their enterprises to secure working capital, loans, and other funds from banks.
Lack of funding has hit a slew of long-gestation infrastructure projects in India. World Bank Chief Economist & Senior Vice-President, Dr Justin Yifu Lin, on 13 March 2009, said if India can improve its infrastructure such as electricity, power, transportation and port facilities, it will be well on its path to achieve a 9-10% growth.
Meanwhile, foreign institutional investors had stepped up buying of Indian stocks. Foreign institutional investors (FIIs) bought shares worth a net Rs 2,494.70 crore in nine trading sessions from 13 March 2009 to 25 March 2009. FII inflow in March 2009 totaled Rs 994.90 crore (till 27 March 2009). However, Foreign institutional investors (FIIs) sold shares worth a net Rs 270.70 crore on Friday, 27 March 2009
But the latest sharp fall in the rupee will result in a depreciation in the value of FIIs' equity portfolio to the extent of the fall in the rupee. A sharp volatility in the rupee may also dissuade fresh buying by foreign funds. The Indian rupee declined sharply on Monday, 30 March 2009, weighed down by the dollar's strength against some currencies and weakness in regional stock markets. The partially convertible rupee was at 51.12 compared to Thursday's closing of 50.59/61. The rupee hit a record low beyond 52 per dollar early this month.
Domestic institutional investors have been absorbing heavy selling by foreign funds witnessed in first two months of calendar year 2009. Mutual funds are likely give support to prices to prop-up year end net asset values (NAVs). The financial year ends on Tuesday, 31 March 2009.
The recent steep volatility in the currency does not augur well for corporate India as it may result in hedging losses for some firms. Meanwhile, the National Advisory Committee on Accounting Standards (Nacas), has reportedly favoured suspending for two years a key rule that requires firms to mark-to-market (MTM) foreign exchange assets and liabilities, a decision which is favourable for corporate India.
Accounting Standard-11 mandates MTM provisioning in the P&L a/cs for forex-related gains and losses. It requires that forex assets & liabilities be recorded at a fair value on the date of preparation of the balance sheet. The demand to suspend this rule, known in accounting circles as AS-11, was made by the Confederation of Indian Industry (CII) on grounds that it could severely distort the earnings of many companies. It was contended that this accounting standard, designed to address normal conditions, should be suspended for the time being, as the present market conditions were not normal.
The upside on the domestic bourses will be capped in the next two months due to political uncertainty ahead of parliamentary election to be held between mid-April 2009 to mid-May 2009. More so at a time when it is highly unlikely that either Congress or BJP will come to power on its own, i.e., without the support of other small/regional parties. Early estimates point a fractured mandate. An alliance led by the Congress party is ahead in pre-poll surveys carried out by several polls.
But in a move which could undermine the chances of a Congress-led alliance getting more seats in the election, RJD supremo Lalu Prasad has announced candidates for 28 of the 40 constituencies in Bihar including from the three seats where Congress has sitting MPs. RJD is one of the key constituents of the current Congress-led UPA government at the Centre.
The Congress, meanwhile, has reportedly sealed a seat-sharing pact with the Nationalist Congress Party (NCP) in the populous Maharashtra state. Relations between the two parties have been prickly as the NCP negotiated with opposition parties to undercut Congress and boost its leader's prime ministerial ambitions. Congress will stand for 26 seats in the state and the NCP for 22. The allies are weighing up their options for a similar deal outside the state.
The Congress party on Tuesday 24 March 2009 said it would extend interest relief to farmers and build on the national job guarantee scheme. The focus on populist measures by Congress may weigh on the stock market sentiment especially at a time when the fiscal deficit has risen sharply. Releasing the party manifesto for the election, the Congress party on Tuesday said it would maintain government control over state-run firms in the manufacturing and finance sectors.
As per reports, BJP's manifesto is likely to be even more populist than that of the Congress party. The BJP looks set to sell rice to families below the poverty line at the hugely subsidised price of Rs 2 a kilo. Congress has already promised to sell 25 kilos of wheat or rice per month at Rs 3 a kilo.
A group of smaller political parties, including the communists, have formally launched a Third Front in a bid to provide an alternative to the two main parties viz. the Congress and the BJP. A latest jolt to the Congress party came from a decision of the regional party in Tamil Nadu viz. the PMK on Thursday, 26 March 2009, to join hands with the All India Anna Dravida Munnetra Kazhagam (AIADMK). PMK is a part of the ruling Congress-led United Progressive Alliance at the centre. The PMK's decision to join AIADMK could give impetus to the Third Front if the PMK and AIADMK join it.
The BSE 30-share Sensex was down 480.35 points, or 4.78%, to 9,568.14. At the day's high of 9,902.35, the Sensex fell 146.14 points in early trade. At the day's low of 9,520.96, the Sensex fell 527.53 points in late trade. The S&P CNX Nifty was down 130.50 points or 4.2% to 2,978.15. It hit a low of 2,962.40.
The BSE clocked a turnover of Rs 3,247 crore, lower than Rs 4,347.91 crore on Friday, 27 March 2009.
Nifty April 2009 futures were at 2980.80, at a premium of 2.65 points as compared to the spot closing of 2978.15. Turnover in NSE's futures & options (F&O) segment was Rs 50,238.21 crore, lower than Rs 51,171.38 crore on Friday, 27 March 2009.
The BSE Mid-Cap index was down 1.48% and BSE Small-Cap index fell 1.18%. Both the indices outperformed the Sensex.
The BSE Consumer Durables index (up 0.53%), the BSE Healthcare index (up 0.02%), the BSE FMCG index (down 2.06%), the BSE Auto index (down 2.58%), the BSE Oil & Gas index (down 2.64%), the BSE PSU index (down 3.21%), the BSE Power index (down 3.61%), the BSE Capital Goods index (down 3.81%), the BSE TECk index (down 3.94%), the BSE IT index (down 4.43%) outperformed the Sensex.
The BSE Bankex (down 8.58%), the BSE Metal index (down 7.4%), the BSE Realty index (down 7.24%) underperfomed the Sensex.
The market breadth, indicating the overall health of the market, was weak on BSE with 934 shares advancing as compared with 1,504 that declined. A total of 66 shares remained unchanged.
From the 30 stock Sensex pack 28 stocks fell while the rest gained. Jaiprakash Associates, Reliance Infrastructure and Reliance Communications fell by between 8.7% to 12.34%.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) fell 2.09% to Rs 1,515.70 extending the fall for the second straight day on profit taking after recent solid surge. However, the stock came off the day's low of Rs 1,494.10. The Reliance Industries stock had jumped 35.67% in eleven trading sessions to Rs 1565.50 on 26 March 2009 from a recent low of Rs 1153.85 on 9 March 2009.
Meanwhile, report suggests firm will begin gas production from the Krishna Godavari (KG) basin in 24 to 48 hours, with gas production from the Dhirubhai 6 (D6) block estimated to add close to $2 billion to the company's profit at peak production levels.
RIL's advance tax payment fell 16.47% to Rs 370 crore in Q4 March 2009 over Q4 March 2008.
India's largest oil exploration firm by sales ONGC fell 3.11% to Rs 782.90 as crude oil fell for a second day in New York on Friday, 27 March 2009, on speculation global stockpiles will increase as the world economy remains in recession. But the stock came off the day's low of Rs 770.15. Cairn India declined 6.79%
Crude oil for May delivery fell as much as $1.26, or 2.4% to $51.12 a barrel on the New York Mercantile Exchange. Fall in crude oil prices would result in lower realizations from crude sales for the oil exploration firm.
Shares of oil marketing companies rose after the government recently issued oil bonds worth Rs 10,000 crore to compensate them for under-recoveries on sale of petroleum products at a controlled price during the current financial year . BPCL and HPCL rose by between 0.95% and 0.94% respectively.
Indian Oil Corporation fell 2.28% after company said on Wednesday, 25 March 2009 the government has approved a proposal to absorb its subsidiary Bongaigaon Refinery & Petrochemicals (BRPL). Indian Oil will issue four shares for every 37 shares in BRPL.
Indian Oil Corporation has been issued oil bonds worth Rs 5,817.27 crore, while Bharat Petroleum Corporation has been issued bonds worth Rs 2,144.32 crore. Hindustan Petroleum Corporation has got bonds worth Rs 2,038.41 crore.
Some FMCG stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. United Spirits, Dabur India, REI Agro, Tata Tea, Nestle India and ITC rose by between 0.35% to 3.11%. But India's largest FMCG firm by sales Hindustan Unilever fell 0.25%. The company's advance tax payment rose 30% to Rs 130 crore in Q4 March 2009 over Q4 March 2008.
Some healthcare stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Cadila HealthCare, Glenmark Pharmaceuticals, Biocon, Pfizer, Fortis HealthCare, Matrix Laboratories rose by between 0.64% to 5.87%.
Sun Pharmaceutical Industries rose 0.25% after the company on Monday said it received approval from the U.S. Food and Drug Administration to sell topiramate tablets, used for the treatment of seizures.
Metal stocks fell as metal prices declined on the London Metal Exchange. Steel Authority of India, National Aluminum Company, Sterlite Industries, Hindustan Zinc, Tata Steel, and Hindalco Industries fell by between 4.97% to 12.24%.
Banking stocks declined on concerns of marked-to-market losses on their bond portfolio. India's largest bank in terms of assets and branch network State Bank of India fell 9.18%. Its advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.
India's largest private sector bank by net profit ICICI Bank fell 12.27% after the stock rose over 19% in past five sessions. Its American depository receipts (ADR) fell 1.15% on Friday, 27 March 2009. ICICI Bank's advance tax payment remained unchanged at Rs 250 crore in Q4 March 2009 when compared to Q4 March 2008.
India's second largest private sector bank by operating income HDFC Bank fell 5.18% as its ADR fell 4.61% on Friday. Its advance tax payment rose 10% to Rs 275 crore in Q4 March 2009 over Q4 March 2008.
India's biggest dedicated housing finance firm by operating income HDFC fell 8.72%. It announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective Wednesday 25 March 2009.
Other PSU stocks, Union Bank of India, Bank of Baroda, Bank of India, Punjab National Bank, Indian Overseas Bank, fell by between 5.41% to 9.97%.
A sharp fall in bond prices this year will result in depreciation in banks' bond portfolio. The yield on 10-year bonds fell for a seventh day in a row on Monday, 30 March 2009, the longest losing streak in almost two months, on speculation increasing government debt sales will reduce demand for existing securities. The yield on benchmark notes due 2019 climbed to the highest since November 2008 after the central bank last week said India plans to sell a record Rs 241000 crore ($47 billion) of bonds in the first half of the year starting 1 April 2009.
The government plans to borrow Rs 362000 crore in the whole of the next fiscal year, also the most ever. The yield on the 6.05% note due February 2019 added 15 basis points to 7.17% as of 10:13 IST in Mumbai. That is the highest since 25 November 2008. Bond yields and bond prices are inversely related. It may be recalled that banks made huge treasury gains in the December 2008 quarter following a surge in bond prices.
Banking stocks had risen sharply in the past few days on rate cut hopes and after the Reserve Bank of India (RBI) on Wednesday 25 March 2009 issued fresh norms for the treatment of provisions for restructured accounts, standard assets, and non-performing assets (NPAs), a move that will help improve the financial health of banks.
Outsourcing focussed IT firms declined for the second straight day after US based technology outsourcing and consulting firm Accenture on Thursday 26 March 2009 reported a drop in quarterly sales and lowered its full-year profit outlook due to a stronger dollar and a slower global economy.
India's second largest software services exporter Infosys Technologies fell 3.63% as its ADR fell 7.43% on Friday. Recent reports said it may win a large IT project from the government, which will run on a transaction-based pricing model, similar to the passport processing contract its larger rival Tata Consultancy Services (TCS) won last year. The contract is among the many large IT contracts that are up for bidding from government departments or public sector undertakings, reports suggest.
India's third largest software services exporter, Wipro fell 4.74% as its ADR fell 5.37% on Friday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).
India's largest software services exporter by sales TCS fell 9.12% . The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.
Rate sensitive realty stocks declined on talks falling interest rates have failed to revive housing demand. DLF, Indiabulls Real Estate and Unitech fell by between 6.6% to 9.34%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
Capital goods stocks fell on worries a slowing economy will crimp orders. Bharat Heavy Electricals, Crompton Greaves, Punj Lloyd, Areva T&D, ABB fell by between 0.42% to 5.53%.
India's largest engineering and construction firm by sales Larsen & Toubro was lost 4.27% to Rs 650.95 even as the company said it had won an order worth Rs 345 crore to manufacture steam generators for Nuclear Power Corporation of India.
Auto stocks fell on profit taking after a recent solid surge triggered by expectations of good sales in March 2009. Tata Motors, Hero Honda Motors, Mahindra & Mahindra and Maruti Suzuki India fell by between 1.35% to 8.74%.
Cals Refineries clocked the highest volume of 1.63 crore shares on BSE. Reliance Natural Resources (1.32 crore shares), Unitech (1.21 crore shares), S Kumar Nationwide (98.66 lakh shares) and Suzlon Energy (79.07 lakh shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 354.61 crore on BSE. ICICI Bank (Rs 229.17 crore), Aban Offshore (Rs 131.88 crore), Tata Steel (Rs 131.50 crore) and Reliance Infrastructure (Rs 126.66 crore) were the other turnover toppers in that order.
Market may resume weak
The market is monitoring the international markets for further direction and the weakness across the global markets may drag down the local indices. The market may open in negative territory following the slump in Asian markets in morning trades. However, after posting significant gains in last five sessions, buying interest may continue on the back of firm trend. Among the key local indices, the Nifty has good support around 3050-3000 levels and upside till 3150-3200 levels. The Sensex has a likely support at 9900 and may face resistance at 10200.
US indices slipped on Friday with the Dow ended lower at 7776 down 148 points, while the tech-laden Nasdaq declined to close 42 points lower at 1545.
Indian floats had a weak outing on the US bourses. Infosys, Satyam, Wipro, HDFC Bank, Patni Computer, ICICI Bank and Dr Reddy lost around 1.7% each while Tata Motors, MTNL and Rediff gained 3-8% each.
Crude oil prices in the international market edged lower, with the Nymex light crude oil for May delivery lost by $1.96 to close at $52.38 per barrel. In the commodity space, the Comex gold for June series declined $16.90 to settle at $925.30 a troy ounce.
Pre Session Commentary - March 30 2009
Today the domestic markets are likely to open negative as the Asian markets have opened with heavy blood bath. Also, the investors will be keeping close eye on the March quarterly results as well as the general elections scheduled in April 2009. The market is likely to give up its previous week gains as there are bearish sentiments across the major global markets. This could result in heavy profit booking across the sectoral indices. The market is likely to witness some selling pressures tracking the weakness in the global markets.
On Friday, the domestic markets traded volatile however later managed to close in green. Since the opening the domestic markets turned volatile as the other Asian markets were also trading mixed. Despite positive closing of the US markets, the Asian markets traded with low zeal. A very cautious trade was witnessed amidst fears of peak level of bench mark indices. After a consecutive rally a range bound trade was rather expected. However on the other hand broader markets outperformed the benchmark indices as BSE Mid cap and Small cap gained 2.09% and 1.59% respectively. Sectors like Metal, HC, Bankex and Auto ended with remarkable gains of 4.85%, 2.81%, 2.61% and 2.22% respectively. However IT and Oil & Gas closed with losses of 0.99% and 0.12% respectively. During the session we expect the markets to be trading negative with bearish trend.
The BSE Sensex closed with marginal gain of 45.39 points at 10,048.49 and NSE Nifty ended with a gain of 26.40 points at 3,108.65. BSE Mid Caps and BSE Small Caps ended with gains of 59.94 points and 50.77 points at 2,934.16 and 3,238.11 respectively. The BSE Sensex touched intraday high of 10,127.09 and intraday low of 9,913.40.
On Friday, the US Markets tumbled to close with losses on account of profit booking at the end of week. Weakness in large-cap tech caused the Nasdaq Composite to under perform its counterparts. Stocks retreated as the heads of JPMorgan Chase and Bank of America said results worsened in March and lower oil and metal prices pulled down commodity producers. Also, the commerce department reported that the Consumer spending reported a marginal rise for the second straight month in February. May crude oil closed 3.6% or $1.96 lower at $52.38 per barrel on New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed lower by 148.38 points at 7,776.18, the NASDAQ Composite (RIXF) index declined by 41.80 points to close at 1,545.20 and the S&P 500 (SPX) dropped by 16.92 points to close at 815.94.
Today major stock markets in Asia are trading in red. Hang Seng is trading down by 257.32 points at 13,862.18 followed by Japan''s Nikkei which is lower by 151.91 points at 8,475.06. Further, Strait Times is down by 25.20 points at 1,720.46, Seoul Composite points is low by 14.08 points at 1,223.43 and Taiwan Weighted dropped by 94.88 points at 5,295.82.
Indian ADRs ended mostly lower. In technology sector, Infosys ended down by 7.43% along with Satyam by 1.79%. Further, Wipro lost 5.37% and Patni Computers closed lower by 2.37%. In banking sector ICICI Bank and HDFC Bank lost 1.15% and 4.61% respectively. In telecommunication sector, MTNL advanced by 4.03% while Tata Communication dropped by 1.58%. Sterlite Industries increased by 0.56%.
On BSE, total number of shares traded were 38.93 Crore and total turnover stood at Rs 4,347.91 Crore. On NSE, total number of shares traded was 87.97 Crore and total turnover was Rs 12,829.61 Crore.
Top traded volumes on NSE Nifty – Unitech with 56448756 shares, SAIL with 2152351 shares, Suzlon Energy with 20265456 shares, Tata Steel with 18856245 shares followed by DLF with 16261955 shares.
On NSE Future and Options, total number of contracts traded in index futures was 1041384 with a total turnover of Rs 15,401.64 Crore. Along with this total number of contracts traded in stock futures were 509429 with a total turnover of Rs 15,730.05 Crore. Total numbers of contracts for index options were 1210770 with a total turnover of Rs 18,800.17 Crore and total numbers of contracts for stock options were 37151 and notional turnover was Rs 1,239.52 Crore.
Today, Nifty would have a support at 3,012 and resistance at 3,123 and BSE Sensex has support at 9,721 and resistance at 10,090.
Market may slip on weak global cues, profit taking
The market may witness profit taking on weak global cues and after strong recent surge in stock prices on the back of sustained buying by foreign funds and hopes of interest rate cut.
The stock markets displayed a distinctly strong trend during the week ended 27 March 2009 as the benchmarks jumped over 10%, on a host of positive global factors. A steep fall in the India's inflation also raised expectations of a further easing of the monetary policy by the Reserve Bank of India. Inflation based on the wholesale prices rose 0.27% in the 12 months to 14 March 2009, a record low. The 30-share BSE Sensex jumped 1,081.81 points or 12.06% to 10,048.49, in the week ended Friday, 27 March 2009. The BSE Sensex jumped 1888.09 points or 23.13% in twelve trading sessions to 10,048.49 on 27 March 2009 from a three-year closing low of 8,160.40 on 9 March 2009.
Foreign institutional investors (FIIs) bought shares worth a net Rs 2,494.70 crore in nine trading sessions from 13 March 2009 to 25 March 2009. As per the provisional figures on NSE, the foreign institutional investors bought shares worth Rs 80.43 crore while domestic funds bought shares worth Rs 42.98 crore on Friday, 27 March 2009 when the BSE 30-share Sensex was up 28.35 points, or 0.28%, to 10,031.45, its highest closing since 6 January 2009.
Asian markets which opened before Indian markets were trading weak today 30 March 2009. Key benchmark indices in Hong Kong, South Korea, Singapore and Taiwan were down by between 1.16% to 1.69. China's Shanghai Composite was up 0.08%.
Japan's Nikkei average slipped 1.76% on Monday, as investors locked in profits after last week's sharp rally, with bank shares such as Mitsubishi UFJ Financial Group falling following a drop in their US counterparts late last week.
US stocks ended a relatively good week on a negative note on Friday 27 March 2009 as investors locked in profits and banking shares took a hit. The Dow plunged 148.38 points, or 1.9%, to 7,776.18. The S&P 500 index declined 16.92 points, or 2%, to 815.94 and the Nasdaq composite index slipped 41.80 points, or 2.6%, to 1,545.20.
In economic front, US personal spending rose for a second straight month climbing 0.2% in February 2009 after January's revised 1-% increase, while income slipped 0.2%. And consumer sentiment improved more than expected in March 2009.
Wall Street registers gains for third consecutive week
Wall Street heads for first monthly gain after a long time
With all ten sectors registering good gains for the week, US market witnessed substantial gains for the week that ended on Friday, 27 March, 2009. Treasury Secretary Geithner unveiling his plan to purchase bad assets from banks, encouraging report in the housing sector coupled with a better thane expected report in the durable goods sector gave stocks a strong start during the week. An earning report from retailer Best Buy beating Wall Street estimates just kept gains growing during the week. But downside guidance from Accenture took a toll on technology stocks hammering the indices during the last day of the week.
Nevertheless, stocks witnessed strong gains for the week. The Dow Jones Industrial Average gained 497 points (6.8%) for the week to end at 7776. Tech - heavy Nasdaq gained 88 (6%) to end at 1,545. S&P 500 gained 47 (6.2%) to end at 816. Strength in financial sector followed by industrials and consumer discretionary sectors helped the indices post good gains for the week.
On Monday, 23 March, 2009, The Treasury Department unveiled their plan about buying back most of the bank's toxic assets thereby cleaning up their balance sheet to the extent possible. Treasure Secretary Tim Geithner detailed that the Treasury plans to create a series of public-private investments funds to buy $500 billion to $1000 billion in legacy loans and securities. To encourage participation from the private sector, the government is taking on much of the risk and offering subsidies. This boosted the confidence of the investors and stocks ended substantially higher.
Also, on Monday, the National Association of Realtors reported that sales of U.S. pre-owned homes rose 5.1% to a seasonally adjusted annual rate of 4.72 million in February, boosted by "deep" price discounts. It was the largest percentage gain since July 2003. Sales are down 4.6% in the past year. February's sales increased in all four regions as tracked by the NAR. This gave stocks a huge boost on Monday and Dow ended higher by 98 points.
Again on Wednesday, 25 March, 2009, the Commerce Department reported that demand for machinery and other capital goods rose in February, driving orders for durable goods up 3.4%. The increase came after six consecutive months of drop. Many sectors posted gains in February. The orders for durable goods fell a revised 7.3% in January, much worse than the previous estimate of a 4.5% decline.
In a separate report, the Census Bureau reported that sales of new homes nationwide rebounded by 4.7% in February. Sales of new homes rose to a seasonally adjusted annual rate of 337,000 last month, higher than the 323,000 expected. Meanwhile, the government revised January's sales pace for new homes to 322,000 units, up from the 309,000 reported earlier.
With these reports, Dow ended higher all the first four days of the week.
In the US market on Friday, 27 March, 2009, stocks started and ended the day in the red. After starting the day 117 points down earlier during the day, The Dow Jones Industrial Average ended lower by 148 points at 7,776. The Nasdaq Composite Index, ended lower by 42 points at 1,545. S&P 500 ended lower by 17 points at 815.
Among major economic report for the day, Commerce Department reported today that February personal income in US declined -0.2%, while spending increased 0.2%. Both were in level with estimates. However, real disposable income declined 0.4%.
The technology sector weighed significantly on the Dow on Friday with a number of heavyweights like IBM, Intel coming under pressure today. The tech sector is dragging as fellow component Accenture posted upside results for its latest quarter but the company lowered its outlook for the full year. Also, Intel is trading with weakness after the company announced it will issue a $1 billion common stock offering.
On Friday, crude-oil futures for light sweet crude for May delivery closed at $52.38/barrel (lower by $1.96 or 3.6%) on the New York Mercantile Exchange. For the week, crude ended higher by 0.6%.
In the currency market on Friday, the dollar moved higher against most major rivals as a budget warning from Germany's finance minister pressured the euro.
For the year 2009, Dow, Nasdaq and S&P 500 are down by 11.4%, 2% and 9.7% respectively.
Gitanjali Gems
The substantial price falls suffered by the stock of diamond jeweller, Gitanjali Gems, offers an entry for investors with a long investing horizon. At Rs 41, the stock has fallen 87 per cent from a high of Rs 315, in May 2008. The share trades at just 2.4 times its trailing standalone earnings versus closest competitor Titan’s price-multiple of 16 times.
The stock’s fall may have been precipitated by the floundering gems and jewellery industry — imports and exports deteriorated, both mining and production were put on hold —but appears to have discounted a fair bit of the negative news.
For Gitanjali, a rising proportion of domestic retail sales (as opposed to exports), a shift in product mix towards jewellery (from low-margin polished diamonds) and diversification moves suggest reasonable growth prospects over the long term.
The company’s presence across the value chain allows sourcing from both the Diamond Trading Corporation and other mines (helping better cost control), while forward integration in the jewellery business (from processing of rough diamonds into jewellery, branding and retail) lowers business risk and allows better margins than pure diamond exporters.
Key segments
Gitanjali operates in three main lines of business — diamonds and jewellery, the nascent lifestyle products and SEZs. Within the diamonds segment, the company processes (cutting and polishing) and exports diamonds; besides retailing diamond and gold jewellery in India and overseas. The jewellery segment did well in the past three years, clocking a CAGR of 63 per cent, with contribution to revenue going up from 22 per cent in 2006 to 42 per cent in the latest quarter.
The company expects to move to a 50:50 mix over the next year or so. This segment generates a better return on capital employed, 15 per cent versus the 1.5 per cent offered by diamonds (year-to-date figures).
Through the lifestyle business, the company retails watches, silver wear, cosmetics, perfumes, leather and accessories. Gitanjali’s SEZ initiative has not begun to contribute to revenues as yet.
Besides some in-principle approvals, it has one notified 80-hectare gems and jewellery SEZ at Hyderabad.In another initiative, Gitanjali recently entered into a joint venture agreement with the Kuwait-based Hassan’s Optician Company to secure a foothold in the eyewear segment.
Brand recall
Gitanjali is a top player in the branded jewellery market; the only other player with a significant national footprint being Titan Industries’, Tanishq. Gitanjali, however, leans towards the premium end, with an emphasis on diamond jewellery. Brands include the high-end Nakshatra and D’damas, daily wear Gili and Asmi, bridal collections Vivaha and Maya, pure-gold Collection G, and couples collection Sangini.
Most command good brand equity, and the infancy of India’s branded jewellery market will allow it to make the most of the opportunities thrown up as the market develops. Distribution is through ‘shop-in-shops’ housed in malls, independent jewellers, besides exclusive stores.
The domestic branded jewellery business appears very promising for the company at this juncture; a focus on premium jewellery leaves it less susceptible to cutbacks on spending by the mid-lower income groups.
The segment grew 20 per cent in the nine months ended December 2008. The problems related to global recessions and a cutback in US consumer spends may pose challenges for the diamond export segment.
On solid ground
Helped by its expanding retail footprint, Gitanjali’s sales have grown at a compounded annual rate of 25 per cent in the past three years, far surpassed by a 151 per cent growth in net profits in the same period.
A shift in product mix and cost-cutting measures pushed net profit margins from 1 per cent in FY 2005 to 5.2 per cent in the previous financial year. Gross margins improved from 2.5 per cent to 6.7 per cent in the same period.
Exports have always formed a bulk of revenues, though the share has come down to 52 per cent (December ’08 quarter) from the 71 per cent in 2005. Despite this, and significant imports, the company has not suffered any forex loss as yet.
Leverage is fairly low at 0.7 times (consolidated); coupled with a growing interest cover from 2.5 times in 2005 to its current 6.6 times, the company may not run into near-term funding roadblocks. Loans are primarily to fund working capital — the sector it operates in calls for high working capital. Its fund-raising spree through 1 per cent FCCBs and GDRs has left it with enough funds on hand to tide over for the next few quarters at least.
Challenges
Gitanjali’s SEZs concentrate primarily on gems and jewellery processing which is currently lacklustre. About $73.86 million of the FCCB, outstanding as of March ‘08, is due by 2011. Given the conversion price of Rs 220, the conversion option appears unlikely to be exercised, should the market price remain unattractive until 2011.
The bonds then may have to be redeemed, taking out more than Rs 250 crore of the company’s funds, assuming no conversion has taken place since March ‘08. Working capital forms about 40 per cent of sales; debtors make up almost half the assets with collection periods averaging five months. Hiccups in collection could restrict cash flows and revenues.
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