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Tuesday, January 13, 2009
BSE Bulk Deals to Watch - Jan 13 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
13/1/2009 533029 ALKALI MANISHKUMARGILADA S 64500 164.73
13/1/2009 500335 BIRLA CORPOR BRIJMOHAN SAGARMAL CAPITAL SERVICES PVT.LTD B 438000 139.92
13/1/2009 521244 CHITRA.SPIN. SRECKO INDHAN LIMITED B 65025 3.55
13/1/2009 521244 CHITRA.SPIN. RAMESH BABU P S 77750 3.55
13/1/2009 526033 CRYSTAL SOFT RAJKUMARIJAIN B 173443 5.72
13/1/2009 526033 CRYSTAL SOFT VAYEDA VIBHUTI P S 100000 5.72
13/1/2009 526033 CRYSTAL SOFT PATEL JIGNESH S 73136 5.72
13/1/2009 511116 HFCL INFOTEL NILAY KISHOR MEHTA B 62500 9.98
13/1/2009 511092 JMD TELEFILM MILAN MUKHERJEE S 41500 19.15
13/1/2009 531602 KOFF BR PICT VIPUL VIRENDRAKUMAR PATEL B 350000 2.66
13/1/2009 500366 ROLTA IND MATRIX EQUITRADE PVT. LTD. B 1688969 71.88
13/1/2009 500366 ROLTA IND OPG SECURITIES P LTD B 2582374 73.31
13/1/2009 500366 ROLTA IND H.J. SECURITIES PVT. LTD. B 2763804 73.20
13/1/2009 500366 ROLTA IND MATRIX EQUITRADE PVT. LTD. S 1688969 72.23
13/1/2009 500366 ROLTA IND OPG SECURITIES P LTD S 2582374 73.79
13/1/2009 500366 ROLTA IND H.J. SECURITIES PVT. LTD. S 2763804 73.40
13/1/2009 511630 SAMBHAAV MED MUNJALBEN G PATEL B 1574200 1.44
13/1/2009 511630 SAMBHAAV MED FRONTLINE BIOSYSTEM LTD S 1581000 1.44
13/1/2009 531249 WELL PACK PA SUNIL BHANDARI B 100000 35.60
13/1/2009 531249 WELL PACK PA RAMESHBHAI V PARMAR S 26000 35.60
13/1/2009 531249 WELL PACK PA SUBHKARAN TILOKCHAND AGARWAL S 76349 35.22
NSE Bulk Deals to Watch - Jan 13 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
13-JAN-2009,EVINIX,Evinix Accessories Limite,NCR BUILDTECH PRIVATE LIMITED,BUY,1110496,3.15,-
13-JAN-2009,HCC,Hindustan Construc Co.,STANDARD CHARTERED BANK (MAURITIUS) LIMITED A/C EMERGING IN,BUY,5000000,47.17,-
13-JAN-2009,HCIL,HIMADRI CHEMICALS AND IND,HIMADRI DYES & INTERMEDIATES LTD,BUY,350000,100.00,-
13-JAN-2009,KOHINOOR,Kohinoor Foods Limited,M/S TRANSWORLD FINVEST PVT LTD,BUY,223675,93.74,-
13-JAN-2009,PNC,Pritish Nandy Comm. Ltd.,ALPHA GRAPHIC INDIA LTD,BUY,75000,17.50,-
13-JAN-2009,ROLTA,Rolta India Ltd.,ADROIT FINANCIAL SERVICES PVT LTD,BUY,929282,75.67,-
13-JAN-2009,ROLTA,Rolta India Ltd.,C D INTEGRATED SERVICES LTD,BUY,2314076,70.91,-
13-JAN-2009,ROLTA,Rolta India Ltd.,EAST INDIA SECURITIES LTD.,BUY,1086934,70.00,-
13-JAN-2009,ROLTA,Rolta India Ltd.,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,1433163,77.46,-
13-JAN-2009,ROLTA,Rolta India Ltd.,MANIPUT INVESTMENTS PVT LTD,BUY,908064,77.45,-
13-JAN-2009,ROLTA,Rolta India Ltd.,P R B SECURITIES PRIVATE LTD,BUY,3934309,70.82,-
13-JAN-2009,ROLTA,Rolta India Ltd.,PARWATI CAPITAL MARKET PRIVATE LIMITED,BUY,1261107,70.79,-
13-JAN-2009,ROLTA,Rolta India Ltd.,TODI SECURITIES PVT. LTD.,BUY,885122,73.37,-
13-JAN-2009,SATYAMCOMP,Satyam Computers Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,4457677,32.25,-
13-JAN-2009,ALKALI,Alkali Metals Limited,GILADA MANISH KUMAR,SELL,80500,164.81,-
13-JAN-2009,EVINIX,Evinix Accessories Limite,COROLATION BUILDERS PVT LTD,SELL,1110000,3.15,-
13-JAN-2009,HCC,Hindustan Construc Co.,RITU ESTATE DEVELOPERS PVT LIMITED,SELL,5000000,47.17,-
13-JAN-2009,HCIL,HIMADRI CHEMICALS AND IND,VIJAY KUMAR CHOUDHARY,SELL,350000,100.00,-
13-JAN-2009,KOHINOOR,Kohinoor Foods Limited,M/S TRANSWORLD FINVEST PVT LTD,SELL,2000,92.99,-
13-JAN-2009,MALWACOTT,Malwa Cotton Spg. Mills ,SARAVANA GLOBAL ENERGY LIMITED,SELL,45500,19.35,-
13-JAN-2009,PNC,Pritish Nandy Comm. Ltd.,TAKESHI INVESTRADE PRIVATE LIMITED,SELL,75000,17.50,-
13-JAN-2009,ROLTA,Rolta India Ltd.,ADROIT FINANCIAL SERVICES PVT LTD,SELL,929182,75.52,-
13-JAN-2009,ROLTA,Rolta India Ltd.,C D INTEGRATED SERVICES LTD,SELL,2314076,71.15,-
13-JAN-2009,ROLTA,Rolta India Ltd.,EAST INDIA SECURITIES LTD.,SELL,1086934,70.07,-
13-JAN-2009,ROLTA,Rolta India Ltd.,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,1433163,77.53,-
13-JAN-2009,ROLTA,Rolta India Ltd.,MANIPUT INVESTMENTS PVT LTD,SELL,908064,77.37,-
13-JAN-2009,ROLTA,Rolta India Ltd.,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,1000000,68.41,-
13-JAN-2009,ROLTA,Rolta India Ltd.,P R B SECURITIES PRIVATE LTD,SELL,3936109,71.24,-
13-JAN-2009,ROLTA,Rolta India Ltd.,PARWATI CAPITAL MARKET PRIVATE LIMITED,SELL,1262007,70.32,-
13-JAN-2009,ROLTA,Rolta India Ltd.,TODI SECURITIES PVT. LTD.,SELL,885122,73.13,-
13-JAN-2009,SATYAMCOMP,Satyam Computers Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,4418920,32.28,-
Post Session Commentary - Jan 13 2009
The Indian market ended below the dotted line after trading volatile during the trading session on continuous bouts of buying and selling. Weak European markets fueled the negative sentiments. However, the IT sector gained strength as the IT bellwether- Infosys results brought a sigh of relief for the investors as it declared a healthy performance in the October-December quarter amid global recession.
The domestic market opened lower but suddenly gained some grounds contributed by IT stocks on the back of stronger-than-expected Q3 December 2008 results posted by Infosys. Further, market slipped shapely into red, though bounced back later. Stocks remained choppy and volatility was high for throughout of trading session. At the end of day, market ended lower on concerns that the dismal quarterly results that the companies are set to announce on the beginning of this week, which will signal that the economy is in worse shape than feared. BSE Sensex ended below 9,100 mark and NSE Nifty below 2,800 level. From the sectoral front, Oil & Gas, Metal, Power, Bank and Pharma stocks remained under pressure as witnessed most of the selling from these baskets. Midcap and Smallcap stocks also ended in negative territory. However, IT, Teck, Consumer Durable and Reality stocks were on the buyer’s ride today.
Infosys Technologies Ltd has announced its audited results for the quarter ended December 31, 2008. The company has posted a net profit after tax of Rs 15980 million during the quarter as compared to Rs 11860 million for the quarter ended December 31, 2007. Total Income has increased from Rs 41510 million for the quarter ended December 31, 2007 to Rs 54770 million for the quarter ended December 31, 2008. Along with this, it has announced the audited consolidated results for the quarter ended December 31, 2008. The company has posted a net profit after tax and minority interest of Rs 16410 million for the quarter ended December 31, 2008 as compared to Rs 12310 million for the corresponding quarter of previous year. Total Income has increased from Rs 44290 million for the quarter ended December 31, 2007 to Rs 58260 million for the quarter ended December 31, 2008.
Among the Sensex pack 16 stocks ended in red territory and 14 in green. The market breadth remained weak as 1562 stocks closed in red while 848 stocks closed in green and 88 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 38.69 points at 9,071.36 and NSE Nifty ended down by 28.15 points at 2,744.95. The BSE Mid Caps and Small Caps ended with losses of 73.60 points and 52.90 points at 3,006.41 and 3,442.35 respectively. The BSE Sensex touched intraday high of 9,261.00 and intraday low of 8,992.92.
Losers from the BSE Sensex pack are Reliance Communication Ltd (6.59%), HDFC (4.21%), Tata Motors (4.11%), ONGC Ltd (3.47%), JP Associates (3.39%), Hindalco (3.09%), HUL (2.93%), Bharti Airtel (2.80%), ICICI Bank (2.68%), Grasim Indus (2.08%) and M&M Ltd (1.70%).
Gainers from the BSE Sensex pack are Infosys Tech (6.36%), Wipro Ltd (6.05%), Ranbaxy Lab (4.57%), Tata Power (3.40%), ACC Ltd (2.47%), TCS Ltd (2.16%), ITC Ltd (1.94%) and SBI (1.76%).
The BSE Oil & Gas index lost (1.78%) or 99.69 points to close at 5,488.64 as Reliance Natural Resources (7.76%), Cairn Ind (7.30%), ONGC Ltd (3.47%), Reliance Petroleum (2.56%), Aban Offshore (2.09%) and Reliance (1.67%) ended in negative territory.
The BSE Bank index closed down by (1.17%) or 60.53 points at 5,126.25. Major losers are Yes Bank (5.37%), Bank of India (4.27%), Axis Bank (2.74%), ICICI Bank (2.68%) and Federal Bank (2.33%).
The BSE Metal index ended lower by (1.15%) or 56.46 points at 4,854.89. Main losers are Hindustan Zinc (8.52%), Gujarat NRE C (5.23%), Sesa Goa Ltd (5.09%), Jai Corp Ltd (3.84%), Jindal Steel (3.45%) and Hindalco (3.09%).
The BSE Power index declined (1.11%) or 19.10 points at 1,696.36. Losers are Siemens Ltd (11.69%), Suzlon Energy (5.27%), ABB Ltd (4.26%), GMR Infra (3.27%), Neyveli LIG (3.19%) and Torent Power (2.40%).
The BSE IT index closed with increase of (4.71%) or 96.64 points at 2,147.69. Scrips that gained are Infosys Tech (6.36%), Wipro Ltd (6.05%), TCS Ltd (2.16%) and Mphasis Ltd (0.60%).
The BSE Teck index advanced by (0.85%) or 14.84 points to close at 1,759.20 as Infosys Tech (6.36%), Wipro Ltd (6.05%), HT Media (3.13%), Dish TV (2.48%), UTV Software (2.27%) and TCS Ltd (2.16%) ended in green.
Dreary trading
Markets took a breather, as investors remained on sidelines ahead of the corporate results season that begins this week. Sensex has lost almost 1,200 points in the last three sessions on the back of weak international markets. The market was range-bound throughout the day. Sensex resumed 68 points lower at 9,042, but gained amid volatile moves on buying in heavyweight and information technology stocks in afternoon and touched the day's high at 9,261. While market witnessed fluctuating trend for a while, the afternoon trades saw the index tumble below 9,000 mark to touch the day's low of 8,993 amid relentless selling pressure. Sensex finally ended the day 39 points lower at 9,071, while Nifty fell 28 points to close at 2,745.
The market breadth was extremely negative. Of the 2,498 stocks traded on BSE, 1,562 stocks declined, whereas 848 stocks advanced. Eighty eight stocks ended unchanged. Except BSE IT, BSE Teck, BSE CD, BSE FMCG and BSE Realty, all other sectoral indices were down around 0.16-1% each. BSE Oil & Gas, BSE Bankex, BSE Metal and BSE Power lost over 1% each.
Selling was rampant in several index heavyweights. Reliance Communications triggered a major sell-off in the market and tumbled by 6.59% at Rs168. Among other major losers, HDFC dropped 4.21% at Rs1,553, Tata Motors declined 4.11% at Rs155.25, ONGC lost 3.47% at Rs630.30, JP Associates shed 3.39% at Rs66.95, Hindalco Industries slumped 3.09% at Rs48.60, Hindustan Unilever slipped by 2.93% at Rs254.95 and Bharti Airtel dipped by 2.80% at Rs607.10. However, Infosys Technologies managed to report gains and jumped 6.36% at Rs1,230.20, Wipro advanced 6.05% at Rs241.10, Ranbaxy Laboratories added 4.57% at Rs216.40 and Tata Power gained 3.40% at Rs752.10.
Over 3.30 crore shares of Satyam changed hands on BSE followed by Rolta India (2.91 crore shares), Reliance Natural Resources (1.78 crore shares), Unitech (1.34 crore shares) and Suzlon Energy (1.03 crore shares).
Strong Infosys results fail to lift market
Key benchmark indices extended losses for the fourth day in a row in what was a highly volatile trading session. Fall in index heavyweight Reliance Industries (RIL), telecom stocks and private sector banking pivotals offset rally in IT stocks on the back of stronger-than-expected Q3 December 2008 results by IT bellwether Infosys Technologies. The BSE 30-share Sensex fell 38.69 points, or 0.42%, to 9,071.36 . Weak global markets weighed on the domestic bourses.
Foreign funds continue to press sales. As per the provisional data released by the stock exchanges after trading hours, foreign funds today, 13 January 2009, sold shares wroth a net Rs 345.78 crore. Domestic funds bought shares worth a net Rs 152.58 crore.
Volatility was intense. After a weak opening, the market surged in early trade boosted by good results from Infosys unveiled before trading hours. After the strong rebound, the market fell sharply to slip into the red in mid-morning trade. It bounced back later. The market pared gains in afternoon trade. A sell-off gripped the market in mid-afternoon trade pulling it day's low. The market bounced back later in choppy trade. But the recovery proved short-lived with the Sensex shedding 1.28% in at about 15:00 IST, before cutting losses.
India's second largest software services exporter Infosys jumped 6.52% to Rs 1232 after it posted a 14.59% rise in net profit to Rs 1641 crore in Q3 December 2008 over Q2 September 2008. The company announced the Q3 December 2008 results before trading hours today, 13 January 2009.
European markets declined today, 13 January 2009, as investors remained worried that big companies might post poor results in the current earnings-reporting season. Key benchmark indices in Germany, France and UK were down by between 1.21% and 1.76%.
Asian markets were mixed. Key benchmark indices in Hong Kong, China and Singapore fell by between 0.81% and 2.17%. However indices in South Korea and Taiwan were up 0.95% and 1.76% respectively.
Stocks fell sharply in Japan. The Nikkei 225 index slumped 4.79% as a stronger yen pressured Toyota Motor and other exporters, with worry about earnings losses at major companies reinforcing fears about the global economy. As per market buzz, Sony Corporation is expected to post heavy operational loss in 2008/09 and Toshiba Corp is expected to post substantial operational loss in the year ending March 2009.
US stocks fell on Monday as concerns about massive credit losses at Citigroup knocked its shares 17% lower, dragging down bank stocks, and on fears of a dismal fourth-quarter earnings season The Dow Jones industrial average plunged 125.21 points, or 1.46%, to 8,473.97. The S&P 500 index declined 20.09 points, or 2.26%, to 870.26, and the Nasdaq composite index slipped 32.80 points, or 2.09%, to 1,538.79.
The BSE 30-share Sensex slipped 38.69 points or 0.42% to 9,071.36. The Sensex opened 67.69 points lower at 9,042.36. The Sensex lost 117.13 points at day's low of 8,992.92 in late trade. At the day's high of 9,261, the Sensex rose 150.95 points in mid-morning trade.
The S&P CNX Nifty fell 28.15 points or 1.02%, at 2744.95. Nifty January 2009 futures were at 2724.40, at a discount of 20.55 points as compared to the spot closing.
The BSE Sensex has lost 1264.57 points or 12.24% in the four trading sessions from 10335.93 on 6 January 2009, hit by accounting scandal at IT major Satyam Computer and on weak global markets. Before the sharp slide, the Sensex had risen 1,007.01 points or 10.79% to 10,335.93 on 6 January 2009 from a recent low of 9,328.92 on 26 December 2008.
The market breadth, indicating the overall health of the market, was weak on BSE, with 1538 shares declining as compared with 881 that rose. A total of 91 shares remained unchanged.
The BSE Mid-Cap index slipped 1.43% at 3,006.41 and the BSE Small-Cap index fell 1.51% at 3,442.35. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 3,465 crore as compared to Rs 3,212.66 crore on Monday, 12 January 2009. Turnover in NSE's futures & options (F&O) segment was Rs 38,378.33 crore, lower than Rs 44,953.49 crore on Monday, 12 January 2009.
The sectoral indices on BSE displayed mixed trend. The BSE Metal index (down 1.15%), BSE Capital Goods index (down 0.65%), the BSE Oil & Gas index (down 1.78%), the BSE HealthCare index (down 0.75), the BSE PSU index (down 0.73%), the BSE Power index (down 1.11%), the BSE Bankex (down 1.17%), underperformed the Sensex.
The BSE IT index (up 4.71%), BSE Realty index (up 0.13%), BSE Consumer Durables index (up 0.79%), the BSE FMCG index (up 0.16%), the BSE Auto index (down 0.16%), the BSE Teck index (up 0.85%) outperformed the Sensex.
Among the 30-member Sensex pack, 16 gained while the rest slipped.
The strong growth in Infosys' Q3 net profit was mainly due to the depreciation of the rupee against the dollar. The growth in net profit was way above market expectations. The company's revenue rose 6.8% to Rs 5786 crore in Q3 December 2008 over Q2 September 2008. The revenue growth also surpassed market expectations.
On the flip side, Infosys has cut earnings and revenue in dollar terms for the year ending March 2009 (FY 2009). At the same time, it has raised upwards earnings and revenue guidance in rupee terms for FY 2009
Infosys now expects 27.6% growth in earnings per share at Rs 101.30 for FY 2009, revising upwards from Rs 100.51 projected earlier. The company now expects 29.1% to 30.3% growth in revenue to between Rs 21552 crore to Rs 21757 crore for FY 2009, revising upwards from an earlier projected 27.7% to 30.2% growth.
In dollar terms, Infosys now expects 11.1% growth in earnings per American depository receipt to $2.20 for FY 2009, revised downwards from previously projected 12.6% growth. Revenue growth in dollar terms is now expected at 11.8% to 12.8% at between $4.67 billion to $4.71 billion, revised downwards from an earlier estimated 13.1% to 15.2% growth.
Infosys' strong-than-expected Q3 results and a weaker rupee lifted other IT pivotals. India's third largest software services exporter in terms of sales, Wipro recovered sharply from early low to end with 7.32% surge to Rs 244. It was the top gainer from the Sensex pack. The stock had slumped to low of Rs 200 in early trade. Wipro unveils its Q3 December 2008 earnings on 21 January 2009.
The stock had plunged 9.3% on Monday, 12 January 2009 after the company said during market hours it was barred from bidding for contracts from the World Bank until 2011 after it offered employees of the institution shares in its initial public offering. The announcement sent Wipro's ADR tumbling 10.37% on Monday, 12 January 2009.
India's largest software services exporter by sales TCS, too, rebounded from early low of Rs 488 and settled 2.98% higher at Rs 527. TCS unveils its Q3 December 2008 results on 15 January 2009.
However, India's fourth largest software services exporter by sales Satyam Computer Services slumped 8.28% to Rs 31.55 as a quick-fix solutions is unlikely to rescue the firm hit by an estimated Rs 7,000 crore accounting fraud. The stock came off the session's high of Rs 37.
The government-appointed directors on Monday, 12 January 2009 took charge of Satyam and announced that they would appoint a new auditing firm within 48 hours to re-state the accounts. Also, they would immediately begin searching for a new chief executive officer and a chief financial officer.
The government has reportedly offered to throw a financial lifeline to tottering Satyam Computer Services to help it pay salaries to some 53,000 employees and run its operations. The government will consider all aspects, including giving financial support, once it receives firm proposals from the newly-constituted board, Commerce and Industry Minister Kamal Nath said on Monday, 12 January 2009.
Other small and mid-cap IT shares also logged gains taking cues from Infosys's better-than-expected Q3 results. MphasiS (up 0.74%), HCL Technologies (up 0.51%), Sonata Software (up 2.27%), gained.
Rolta India witnessed heightened activity seeing wild swings amid rumours that creditors with whom promoters had pledged their stake have resorted to fire sales in the open market. The stock which all off a sudden tanked as much as 60% in afternoon trade to a 52-week low of Rs 42.40 on BSE later staged a rebound from lower level after the company's chairman K.K. Singh denied rumours that creditor had sold shares pledged by the promoters. The stock ended 18% lower for the day at Rs 87.15 compared to Monday's (12 January 2009) close of Rs 105.90. Volumes in the stock were huge at 2.91 crore shares.
The Indian rupee was weak today, 13 January 2009 at 48.99/49 per dollar from Monday's, 12 January 2009 close of 48.84/85. A weak rupee benefits IT firms as the sector earns most of its revenues from exports.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) lost 1.20% to Rs 1086.10. The stock swung in a wide range of Rs 1085 and Rs 1145 in choppy trade. The Centre will file an affidavit today, 13 January 2009 before the Bombay High Court on the sale of gas from the Krishna-Godavari basin. As per reports, the Centre is likely to state that the price of $4.2 per million British thermal unit (mBtu) will be applicable to all buyers irrespective of whether they are government-owned or private entities.
The Centre's submission could be crucial for National Thermal Power Corporation (NTPC), India's largest power generation firm by sales, which is also locked in a dispute with RIL over the purchase of gas from the KG basin. NTPC shares lost 1% today. RIL had earlier agreed to supply 12 million metric standard cubic meters per day of gas to NTPC at $2.34 per mBtu for 17 years.
India's second largest power generation company by sales Tata Power Company rose 3.93% to Rs 756 on signing a pact with the state government of Gujarat for setting up power plants in the state. The company made this announcement after trading hours on Monday, 12 January 2009.
India's top state-run oil exploration firm by market capitalisation Oil and Natural Gas corporation (ONGC) fell 2.92% to Rs 633.90 and India's top private sector oil exploration firm by market capitalisation Cairn India slipped 7.27% to Rs 152.95, as crude oil prices slumped.
The sharp fall in oil prices which augurs well for state run oil marketing companies, boosted shares of PSU OMCs. HPCL (up 4.27%), BPCL (up 3.70%), and IOC (up 3.45%) rose.
US light, sweet crude for February 2009 delivery fell 34 cents to $37.25 a barrel today, 13 January 2009 extending Monday's, 12 January 2009 sharp fall of 7.94% or $3.24 to $37.59 on worries of global economic recession.
Capital goods heavyweights rose on bargain hunting after a recent steep slide. India's largest engineering & construction company by sales Larsen & Toubro (L&T) gained 0.70% to Rs 700 after sliding 18.63% in the past few trading sessions from Rs 854.40 on 5 January 2009 to Rs 695.15 on 12 January 2009. The stock had tumbled on fears L&T will make huge losses on shares of Satyam it bought before the scandal was unearthed at the IT firm last week. L&T had bought shares in Satyam earlier this month and holds 3.95% stake in the company, L&T chairman A M Naik said in a television interview on Friday, 9 January 2009. The company, which has a small outsourcing unit, had made the investment in Satyam in the hope of forming a strategic alliance, he said.
India's largest power equipment maker by sales Bharat heavy Electricals rose 1.70% to Rs 1367. As per reports, Karnataka Power Corporation will sign 2 separate memorandum of understanding with National Thermal Power Corporation (NTPC) and Bharat Heavy Electricals (Bhel) to set up a 4,000 megawatt thermal power plant at Kudigi in Bijapur district of Karnataka and a wind power project of 500 megawatt at three separate places in the state.
Real estate shares advanced with sentiment boosted by India's largest real estate firm by market capitalisation DLF raising about Rs 1,700 crore in debt at a time of tight liquidity and demand slowdown. DLF advanced 1.39% to Rs 208.60. As per reports, DLF raised funds from state-owned Punjab National Bank and Life Insurance Corporation in December 2008 to repay short-term debt.
Indiabulls Real Estate (up 5.60%), Housing Development & Infrastructure (up 0.95%), and Unitech (up 1.47%), gained.
India's largest private sector steel maker by sales Tata Steel rose 3.15% to Rs 206.60. The stock fell to day's low of Rs 191.20 after international agency Moody's Investor Service downgraded the secured rating of the company's European subsidiary, Tata Steel UK (formerly Corus), because of its decision to reduce production and cut costs in response to declining demand.
India's top copper producer by sales Sterlite Industries climbed up 3.08% to Rs 268. It fell to a low of Rs 253 in early trade tracking an 8.11% plunge in ADR on Monday, 12 January 2009.
India's largest cigarette maker by sales ITC rose 2.03% to Rs 168.20 after a block deal of 6.74 lakh shares was executed on NSE at Rs 170 per share. The block deal constituted 0.02% of the company's equity. ITC will declare its Q3 December 2008 results on 19 January 2009
Telecom pivotals slipped on reports India's much awaited 3G spectrum license auction has been postponed yet again. India's second largest telecom services provider by sales Reliance Communication (RCom), slumped 6.42% to Rs 168.30 and was the top loser from the Sensex pack. India's largest telecom services provider by sales Bharti Airtel lost 2.82% to Rs 607
Private sector banking stocks declined on worries of rising bad loans in a slowing economy. India's largest private sector bank by net profit ICICI Bank fell 2.51% to Rs 427 after its ADR fell 7.31% on Monday, 12 January 2009. India's second largest private sector bank by net profit HDFC Bank shed 1.65% to Rs 987.65 after its ADR slipped 5.04% on Monday, 12 January 2009.
However India's biggest bank in terms of total assets and branch network, State Bank of India rose 1.40% to Rs 1173. The stock had slipped 4.86% yesterday after the bank's Chairman O.P. Bhatt during trading hours said the bank has an exposure of about Rs 500 crore to firms with the Maytas tag. Maytas Infra and Maytas Properties are owned by the family of Satyam's Raju. Bhatt said that the exposure was fully collateralised with no problem as of now. He said the bank was reviewing the exposure.
Dewan Housing Finance Corporation rose 4.82% to Rs 82.55 on reports it is set to acquire IDBI Home Finance for close to Rs 311 crore.
India's top truck maker by sales Tata Motors lost 3.24% to Rs 156.65 after its ADR lost 7.56% on Monday, 12 January 2009.
Ashok Leyland fell 0.34% to Rs 14.85 despite bagging an export order worth $10.5 million from Honduras Armed Forces (HAF) for supply of 139 vehicles.
Reliance Industries was the top traded counter on BSE with turnover of Rs 244.60 crore followed by Rolta (Rs 217.40 crore), Reliance Capital (Rs 174 crore), Infosys (Rs 146.20 crore) and DLF (Rs 145.35 crore).
Satyam Computer Services topped volumes on BSE clocking volumes of 3.30 crore shares followed by Rolta (2.90 crore), Reliance Natural Resources (1.80 crore), Unitech (1.35 crore) and Suzlon Energy (1.05 crore).
Fertilizers & Chemicals Travancore shed 1.56% to Rs 18.90. The company reported a net profit of Rs 5.28 crore in Q3 December 2008 as compared to a net loss of Rs 54.46 crore in Q3 December 2007. The company announced the result after the market hours on 12 January 2009.
Hindustan Construction Company surged 2.36% to Rs 47.75 on signing a pact with the state government of Gujarat, involving total investment worth Rs 40,000 crore, for a township project. The company made this announcement before trading hours today, 13 January 2009.
Jubilant Organosys gained 4.60% to Rs 141 after the company said its unit has signed a partnership agreement with US based BioLeap in the area of drug discovery.
Market seen opening lower on negative global cues
Key benchmark indices are likely to open lower mirroring weak global cues. IT bellwether reported better than expected earnings for Q3 December 2008.
Infosys Technologies consolidated net profit rose 14.6% at Rs 1,641 crore in Q3 December 2008 over Q2 September 2008. The company's consolidated net sales rose 6.8% to Rs 5,786 crore versus Rs 5,418 crore.
Asian markets were trading mixed today, 13 January 2009. China's Shanghai Composite slipped 1.09% or 20.69 points at 1,879.64, Japan's Nikkei plunged 4.30% or 380.32 points at 8,456.48. However, Hong Kong's Hang Seng was up 0.38% or 52.87 points at 14,023.87, Singapore's Straits Times rose 1.39% or 24.62 points at 1,800.87, South Korea's Seoul Composite gained 0.47% or 5.44 points at 1,162.19, and Taiwan's Taiwan Weighted advanced 0.19% or 8.39 points at 4,462.29.
US markets ended lower on Monday, 12 January 2009 as investors worried about the outlook for embattled bank Citigroup and expectations mounted for dismal fourth-quarter earnings. The Dow Jones industrial average plunged 125.21 points, or 1.46%, to 8,473.97. The S&P 500 index declined 20.09 points, or 2.26%, to 870.26, and the Nasdaq composite index slipped 32.80 points, or 2.09%, to 1,538.79.
Back home, key benchmark indices, remained in negative zone throughout the day on Monday, 12 January 2009 extending losses for the third straight day on sustained selling in index pivotals. The BSE 30-share Sensex lost 296.42 points or 3.15% to 9,110.05 and the S&P CNX Nifty lost 99.90 points or 3.48% at 2,773.10.
Foreign institutional investors (FIIs) were net sellers worth Rs 563.57 crore while mutual funds sold shares worth Rs 217.83 crore on Monday, 12 January 2009, according to provisional data on NSE.
Pre Session Commentary - Jan 13 2009
Today the markets are likely to open negative. The other major Asian markets have also opened mixed and the US markets closed in red. The IIP numbers recorded a growth of 2.4% for the month of November as against a contraction of 0.3% in October. Despite this growth it has dark story to tell that the capital goods a lead indicator of investment activity witnessed a contraction of 2.3% as against a 9.2% growth over April-October. Further the November IIP numbers grew on the back of a base effect rather than a real growth in economic activity. There is huge amount of pain in the markets as investors are caught in the fist of insecurity and fear. The volume of trade is also little low as compared to previous trades. Infosys Technologies declared a healthy performance in the October-December quarter, reporting 14.5% rise in net profit to Rs 1641 crore as against Rs 1432 crore in the previous quarter. Income stood at Rs 5786 crore vs Rs 5418 crore (QoQ).
On Monday, the markets traded with extreme selling pressures and closed in red. The sentiments were fragile since the opening as the Asian markets traded in the south zone and the European markets also followed the same. The charm of the day was Satyam that gained 44.23% to close at Rs 34.40 on BSE. The extreme selling pressures were seen on sectors like Metal, Realty, IT, Power & CG that lost by 5.62%, 4.87%, 3.80%, 3.67% and 3.63% respectively. Sensex and Nifty lost by 3.15% and 3.48% respectively. Mid caps and Small caps also felt the burn as they lost 2.27% and 1.70% respectively. During the session we expect the markets to be trading volatile.
The BSE Sensex closed lower by 296.42 points at 9,110.05 and NSE Nifty ended lower by 99.90 points at 2,773.10. The BSE Mid Caps and Small Caps ended with losses of 70.78 points and 60.35 points at 3,050.01 and 3,495.25 respectively. The BSE Sensex touched intraday high of 9,331.13 and intraday low of 9,024.45.
On Monday, the US markets ended in red. The markets in US have once again closed in red exuding signs of selling pressures. Losses have been the worst amongst financial stocks as in the past two sessions it lost 9% amidst concerns of fear about what may still be lurking on the balance sheets of banks. Financials were the worst performing sector in 2008, losing roughly 58%, and are currently the worst performing sector in 2009, currently down 13% year-to-date. Crude oil futures for the month of February delivery fell by $3.24 to $37.59 per barrel on New York Mercantile Exchange. The crude futures fell for a fifth straight session, to close at the lowest level in more than two weeks, due to the continued concerns about a sharp slowdown in energy demand.
The Dow Jones Industrial Average (DJIA) closed lower by 125.13 points at 8,474.05 NASDAQ index lost 32.80 points at 1,538.79 and the S&P 500 (SPX) also closed lower by 20.09 points to close at 870.26.
Indian ADRs ended lower. In technology sector, Satyam tumbled 84.39% and Wipro lost 10.37%. Further Infosys ended with decrease of 2.23% and Patni Computers closed down by 0.20%. In banking sector ICICI Bank lost 7.31% along with HDFC Bank ended down by 5.04%. In telecommunication sector, Tata Communication lost 7.68%, while MTNL gained 4.44%. Sterlite Industries decreased by 7.09%.
Today the major stock markets in Asia have opened mixed. The Shanghai Composite is trading low by 22.69 points at 1,877.66 while Hang Seng is high by 13.38 points at 13,984.38. Further Japan''s Nikkei is trading low by 361.64 points at 8,475.16. South Korea’s Seoul Composite is high by 9.65 points at 1,166.40 and Singapore’s Strait Times is high by 25.11 points at 1,801.36.
The FIIs on Monday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 2815.30 Crore and gross debt purchased stood at Rs 96.20 Crore, while the gross equity sold stood at Rs 2993.20 Crore and gross debt sold stood at Rs 0.20 Crore. Therefore, the net investment of equity and debt reported were Rs (177.90) Crore and Rs 96.00 Crore respectively.
On Monday, Indian Rupee closed at 48.84/85 per dollar, 1.2% weaker than Friday’s close of 48.27/29. The rupee traded weak due to the plummeting stock markets and the some off-shore dollar demand.
On BSE, total number of shares traded were 28.46 Crore and total turnover stood at Rs 3,212.66 Crore. On NSE, total number of shares traded were 67.38 Crore and total turnover was Rs 9,692.25 Crore.
Top traded volumes on NSE Nifty – Unitech with 56133039 shares, Suzlon Energy with 34546216 shares, DLF with total volume traded 21920271 shares, Reliance Comm with 14626798 shares followed by SAIL with 12789427 shares.
On NSE Future and Options, total number of contracts traded in index futures was 1118249 with a total turnover of Rs 14,567.81 Crore. Along with this total number of contracts traded in stock futures were 1035845 with a total turnover of Rs 9,815.91 Crore. Total numbers of contracts for index options were 1333186 with a total turnover of Rs 19,633.18 Crore and total numbers of contracts for stock options were 84487 and notional turnover was Rs 936.60 Crore.
Today, Nifty would have a support at 2,688 and resistance at 2,810 and BSE Sensex has support at 8,815 and resistance at 9,211.
Market may fall further
The market may extend its weak trend after the Sensex reported losses of over 300 points in the previous session. The sharp fall in Asian markets in current trades, FIIs remaining the net sellers in equities and weak US Indices may also weigh on the investors sentiment. Among the indices, the Nifty could test 2740 and 2700 on lower side and has a resistance at 2810 and 2850. The Sensex has a likely support at 8950 and may face resistance at 9250.
US indices tumbled on Monday, dragged down by concerns about Citigroup's potential deal with Morgan Stanley - and the start of the fourth-quarter earnings reporting period. While the Dow Jones fell by 125 points at 8,474, the Nasdaq slipped by 33 points at 1,539.
All the Indian ADRs except Dr Reddy & MTNL fell in tune with the broader market. Satyam led the slump and tumbled 84.39% followed by Wipro (down 10.37%), Tata Motors (down 7.56%), ICICI Bank (down 7.31%) and HDFC Bank (down 5.04%) while VSNL, Rediff, Infosys and Patni Computers slipped by over 1-4% each.
Crude oil prices slipped on Monday, US light crude oil for September delivery moved down by $3.24 at $37.59 a barrel. In the commodity space, the Comex gold for December delivery tumbled by $34 to settle at $821 an ounce.
Daily trend of FII/MF investment in equities
On Jan 09, 2009, FIIs were net sellers of stocks to the tune of Rs178 crore (purchases worth Rs2,815 crore and sales of Rs2,993 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs350 crore (purchases worth Rs540 crore and sales of Rs890 crore).
Daily News Roundup - Jan 13 2009
World Bank bars Wipro and Megasoft from deals for offering Bank employees shares and setting up a JV in China with a former bank employee. (BS)
HC could modify the injunction that prevents RIL from selling gas to third parties. (BL)
RIL expects to start the trial production of gas from its KG basin fields by February-end. (BL)
Reliance Power is likely to announce the financial closure of its 3,960MW Sasan ultra mega power project (UMPP) in a few weeks. (BS)
NTPC and BHEL have tied up with Karnataka Power Corporation Ltd to set up thermal and wind power plants in Karnataka to generate 6,900 mw of power. (FE)
NISSAN-Renault is going slow on its ultra-low-cost car project in partnership with Bajaj Auto. (ET)
Cairn India indicated that specifications of its crude to be produced from Rajasthan fields are similar to that of Indonesian crude varieties. (BL)
Bajaj Auto plans to launch six new bikes in 2009 to rev up market share. (ET)
HCC to build Rs400bn ‘water front city’ in Gujarat. (BL)
IOC expects its GRM for the current quarter ending March 31 to be at US$4-5 a barrel. (BL)
DLF has repaid loans of about Rs10bn in December. (BL)
Diwan Housing Finance Corporation is set to buy out IDBI Home Finance for ~Rs3.1bn. (ET)
An independent auditor will conduct a system audit of Financial Technologies’ trading software. (ET)
The Bombay High court has asked the Government to clarify the price at which the gas from Reliance Industries’ KG basin would be sold to NTPC. (ET)
Tata Motors is planning to raise ~Rs27bn through public borrowing, offering upto 13.5% returns. (ET)
Ashok Leyland has bagged an order for 139 vehicles worth US$10.5mn from the Honduras Armed Forces. (ET)
The telecom tribunal TDSAT has dismissed Reliance Communication’s plea for GSM spectrum in six circles. (FE)
A government official said Satyam's receivables were estimated to be Rs25bn and that the company's debt liability is not huge. (BS)
Tata Communications has asked the Government to relax the shareholders’ agreement that puts a cap on the total indebtedness of the company. (BL)
ONGC Videsh Ltd has paid US$2.1bn for Imperial Energy buy and will further invest US$500-600mn in Imperial’s Russian fields. (FE)
Unitech has managed to clear land acquisition problems in West Bengal and has also restarted its work. (BS)
SBI and ICICI review funding to Maytas Infra and Properties. (BS)
Apollo Tyres may increase tyre prices to absorb spiraling raw material costs and maintain margins. (ET)
Bharti Airtel has launched mobile services in Sri Lanka, becoming the fifth mobile operator in the country. (ET)
Chennai Petroleum Corporation has commissioned a reverse osmosis-based desalination plant along the Bay of Bengal. (ET)
Kingfisher Airlines has hedged 10-15% of its jet fuel requirement for the remaining part of this fiscal. (ET)
NPCIL is likely to sign a three-year contract with Kazakhstan’s state owned Kazatomprom to get natural uranium stock. (FE)
The Government has not yet accorded the status of Ultra Mega Power Project to the 4,000 mw thermal power plant to be set up by NTPC in Karnataka. (FE)
PS Saminathan, the founder chairman and MD of Pyramid Saimira has sold over 6% stake through off-market deals. (FE)
Binani Industries has received High Court’s order for abandoning the share swap scheme of Binani Cement Ltd, its wholly-owned subsidiary. (FE)
Aditya Birla Nuvo has temporarily shut its fertilizer unit located in Jagdispur in Uttar Pradesh. (FE)
State Bank of India has ~Rs5bn exposure in Maytas Properties and Maytas Infrastructure. (FE)
DS Kulkarni Developers has got a formal approval from Department of commerce (SEZ Section) for its Multi Service SEZ at Fursungi, Pune. (FE)
Mounting pressure from shareholders against its merger proposal, Hirco deferred its EGM. (BS)
ICRA suspends ratings of Maytas Infrastructure. (FE)
Bombay Dyeing has bought 10,000 shares of Rs10 each of White Horse Real Estate Company, making it a 100% subsidiary. (FE)
Shoppers Stop has closed down one of its Crossword stores at Ghaziabad. (FE)
General Electric has agreed to guarantee repairs and maintenance of its equipments supplied for Dabhol power project. (ET)
Utkal Alumina International Limited (UAIL) resumed work on Rs40bn alumina project in Orrisa. (BS)
The Index for Industrial Production registered 2.4% growth in November 2008 against 4.9% in November 2007. (BS)
Production in six core infrastructure industries expanded 2.2% in November 2008 compared with 5.1% in the year-ago month. (BS)
The Government may again impose an excise duty of Re1 per litre on non-branded petrol and diesel. (ET)
The Government has relaxed captive coal mining norms to allow power companies to divert surplus coal from one of their projects to another. (ET)
3G spectrum auctions may be delayed from an already rescheduled date of January 30. (BS)
Total domestic vehicle sales in December declined by 18% yoy to 597,622 units. (BS)
The DoT has sought legal opinion on whether it can further double the reserve price which telecom companies would have to pay for 3G spectrum. (FE)
India’s GSM players have added over 8mn mobile customers in December 2008. (ET)
The State Government has served notices to several sugar cooperatives seeking a return on dues on share capital. (FE)
Trading Calls - Jan 13 2009
Nifty (2773) Sup 2725 Res 2810
Sell ONGC (653) SL 660
Target 639, 636
Sell Nalco (181) SL 185
Target 175, 173
Sell Akruti City (613) SL 619
Target 600, 596
Sell SUN TV (164) SL 168
Target 157, 155
Buy Sun Pharma (1123) SL 1112 Target 1143, 1149
Infosys Q3FY09 Results
Infosys Technologies Q3 consolidated net profit rose 33.3% to Rs 1,641 crore for the quarter ended December 31, 2008 as against Rs 1,231 crore in the corresponding quarter a year ago.
According to a release issued by Infosys to the BSE today, the company's Q3FY09 total income increased 35.5% to Rs 5,786 crore from Rs 4,271 crore in Q3FY08.
Scrambling for guidance
If the destination is heaven, why do we scramble to be first in line for hell?
It’s quite a hell out there. Even as the government, regulators and the new board scramble to douse the wildfire at Satyam, its Bangalore-based rival Infosys has come out with its Q3 results.
Infosys has reported a consolidated net profit of Rs16.41bn for the quarter ended December 31, 2008, versus Rs14.32bn in the previous quarter. Consolidated net sales for the reporting quarter are at Rs57.86bn as against Rs54.18bn in the October-December quarter. EPS for the quarter stood at Rs28.63. India Infoline Research had expected Q3 FY09 revenues of Rs57.7bn while the PAT was forecast at Rs17.1bn (pre-exceptional).
No positive surprises were expected from Infosys and it was expected to miss its reported dollar guidance. The company has also trimmed its full-year dollar guidance marginally. The IT sector is facing multiple headwinds, including questions on corporate governance, in the wake of the Satyam controversy. The outlook on the industry remains weak.
The broader market scenario too remains glum in the face of renewed weakness across global markets. The aftershocks from the Satyam quake continue to haunt the market. The surprising improvement in IIP data could not prevent the key indices from slipping further. It may at best provide a temporary relief, as the economy will take time to pick up momentum again. Corporate earnings will continue to be in focus. Politics may become a key factor next month onwards till the end of Lok Sabha polls. Today, we see another cautious opening and no respite in volatility. The bias remains negative.
Key Results Today: CMC and Geojit Financial.
FIIs were net sellers in the cash segment on Monday at Rs5.63bn (provisional) while the local institutions pumped in Rs2.18bn. In the F&O segment, FIIs were net sellers of Rs8.99bn. Foreign funds were net sellers of Rs1.78bn in the cash segment on Friday. Mutual Funds were net sellers at Rs3.49bn on the same day.
US stocks extended last week's declines on Monday, dragged down by concerns about Citigroup's potential deal with Morgan Stanley - and the start of the fourth-quarter earnings reporting period.
Off for a fourth consecutive session, the Dow Jones Industrial Average fell 125.13 points, or 1.5%, to 8,474.05, with 25 of its 30 components ending lower.
Weighing the most on the blue-chip index, Citigroup shares fell 17% with the banking powerhouse reportedly near a deal to combine its brokerage business with Morgan Stanley, whose shares shed 1.4%.
Another Dow laggard, Alcoa shares declined 6.9% after its downgrade by Deutsche Bank to a sell from a hold in the wake of last week's announced cuts in production and employees by the aluminum giant.
Intel reports its results on Thursday, with the chip maker and Wal-Mart among the companies offering bleak forecasts last week.
Shares of technology firm Palm fell nearly 1% after its upgrade to hold by Citibank. Read detailed report.
The S&P 500 Index fell 20.09 points, or 2.3%, to 870.26, with financials fronting the losses that stretched to include all 10 of the index's industry groups, as big declines in real-estate investment trusts and life insurers socked the broader sector. Energy and materials also weighed heavily.
The Nasdaq Composite Index declined 32.8 points, or 2.1%, to 1,538.79.
After the close, Alcoa started off the fourth-quarter reporting period on a less-than-encouraging note. The aluminum maker reported an adjusted loss of 28 cents per share, versus a profit of 36 cents per share a year ago. Analysts thought the aluminum giant would lose 10 cents. The company also reported a bigger-than-expected rise in revenue. A week ago, Alcoa warned that it would lay off 13% of its workforce so as to save costs.
Fourth-quarter earnings are anticipated to be pretty dismal across the board, with companies struggling amid the recession.
Abbott Laboratories said it is buying Advanced Medical Optics for $1.36bn plus debt to expand its eye-care offerings, including laser vision care. Advanced Medical Optics shares gained 143%.
Treasury prices rallied, lowering the yield on the benchmark 10-year note to 2.30% from 2.40% on Friday. Yields on the 2-year, 10-year and 30-year Treasurys all hit record lows last month.
Lending rates improved. The 3-month Libor rate fell to 1.16% from 1.26% late Friday, according to Bloomberg.com. Overnight Libor held steady at 0.10%. Libor is a key bank lending rate.
US light crude oil for February delivery fell $3.24 to settle at $37.59 a barrel on the New York Mercantile Exchange.
COMEX gold for February delivery fell $34 to settle at $821 an ounce.
Gasoline prices slipped 0.2 cent to a national average of $1.79 a gallon, according to a survey of credit-card swipes released Monday by motorist group AAA.
European stocks declined on Monday for a fourth straight session, as worries over the prospect for the world economy sent shares of oil-sector companies lower.
The pan-European Dow Jones Stoxx 600 index fell 1.6% to 204.53. Though the oil sector paced the decline, 13 of the 14 component Stoxx sectors finished in the red.
The French CAC-40 index fell 1.6% to 3,246.12, while Germany's DAX 30 index declined 1.3% to 4,719.62, and the UK's FTSE 100 index lost 0.5% to 4,426.19.
It was the third straight trading session where markets ended with losses. Weak global cues coupled with selling witnessed in metals’, power and realty stocks dragged the benchmark indices lower. The BSE benchmark Sensex ended at 9,110 losing 296 points and the NSE Nifty index lost 99 points to close at 2,773.
Among the BSE Sectoral indices BSE Metal index (down 5.7%), BSE Realty index (down 4.4%), BSE PSU index (down 3.6%) and BSE Power index (down 3.6%). Even BSE Mid-cap index (down 2.3%) and BSE Small-Cap index (down 1.7%).
Market breath was negative, 1,598 stocks declined against 838 advances, while, 84 stocks remained unchanged.
Shares of Wipro dropped by over 9% to Rs227 after the company said that in June 2007 the World Bank determined Wipro to be ineligible to contest direct contracts from the World Bank for the period 2007-2011.
The scrip touched an intra-day high of Rs248 and a low of Rs220 and recorded volumes of over 9,00,000 shares on BSE.
Shares of Megasoft declined by half a percent to Rs15.7 after the World Bank barred the company for four years from December 2007. The scrip touched an intra-day high of Rs17.9 and a low of Rs13.3 and recorded volumes of over 1,00,000 shares on BSE.
Provogue India was locked at 5% lower circuit at Rs48.7 after almost 1% of equity changed hands in two transactions. The scrip touched an intra-day high of Rs50.8 and a low of Rs48.7 and recorded volumes of over 5,00,000 shares on BSE.
Shares of Bharat Forge declined by over 8% to Rs81 after reports stated that it would call off its issuance of non-convertible debentures worth Rs4bn due to the weak market conditions. The scrip touched an intra-day high of Rs89 and a low of Rs80 and recorded volumes of over 1,00,000 shares on BSE.
Binani Cement was unable to hold on to their gains and slipped lower by 2% to close at Rs31.7. The stock had rallied on report that the company was planning to invest Rs9bn on expansion. The scrip touched an intra-day high of Rs34 and a low of Rs31 and recorded volumes of over 18,000 shares on BSE.
Overall trend is likely to be choppy amid anxiety about corporate earnings and fragile state of the global economy. Tuesday will be a big day, as IT giant Infosys comes out with its Q3 results. Market expectations remain muted due to the global economic downturn, especially in the US. Overall, the IT sector continues to be out of favour with most investors.
Bullion metals turn very pale
Strong dollar and weak oil price hammer precious metals
Bullion metals ended substantially lower on Monday, 12 January, 2009 as the dollar strengthened and also due to the weak crude oil price. Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Monday, Comex Gold for February delivery fell $34 (3.9%) to close at $821 an ounce on the New York Mercantile Exchange. Last week, gold prices ended down by 2.8%. This year gold has lost 7.7% till date. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (20.5%) since then.
On Monday, Comex silver futures for March delivery fell by 57 cents (5%) to $11.32 an ounce. Last week, silver has gained 13 cents. For 2008, silver lost 24%.
At the currency market on Monday, the dollar was up against most major counterparts.Tthe U.S. dollar rose against the euro on expectations that the European Central Bank will cut its key interest rate later this week. The ECB's key lending rate stands at 2.5%.
In the crude market on Friday, crude prices fell by more than 7% to close below $38/barrel.
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 February delivery closed lower by Rs 334 (2.4%) at Rs 12,994 per 10 grams. Prices rose to a high of Rs 13,316 per 10 grams and fell to a low of Rs 12,850 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed Rs 387 (2.1%) lower at Rs 18,017/Kg. Prices opened at Rs 18,350/kg and fell to a low of Rs 17,903/Kg during the day's trading.
Crude drops for fifth straight day
Prices drop by more than 7% on demand concerns
After rallying for four previous sessions, crude oil prices ended lower for the fifth consecutive day today on Monday, 12 January, 2009. Prices fell due to the overall weak economic sentiments surrounding the US economy in recent months.
On Monday, crude-oil futures for light sweet crude for February delivery closed at $37.59/barrel (lower by $3.24 or 7.9%) on the New York Mercantile Exchange. Earlier during the day, prices fell to a low of $37.48. Last week, crude prices shed 12%.
Prices reached a high of $147 on 11 July but have dropped almost 65% since then. Year to date, in 2009, crude prices are lower by 16.2%.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
OPEC has been trying to cut production consistently in order to step up prices from their current low levels.
Last week, the Labor Department reported the U.S. economy lost 524,000 jobs in December, closing out the worst year of job losses since World War II. The unemployment rate rose to 7.2%, the highest in 16 years. Nearly 2.6 million jobs were lost in 2008, with 1.9 million destroyed in just the past four months.
At the currency market on Monday, the dollar was up against most major counterparts. The U.S. dollar rose against the euro on expectations that the European Central Bank will cut its key interest rate later this week. The ECB's key lending rate stands at 2.5%.
Against this background, February reformulated gasoline sank 2.4% to $1.0841 a gallon, while February heating oil lost 2.1% to $1.4877 a gallon.
Natural gas for February delivery added 1.5% to $5.60 per million British thermal units.
At the MCX, crude oil for January delivery closed at Rs 1,859/barrel, lower by Rs 100 (5.1%) against previous day's close. Natural gas for January delivery closed at Rs 274.4/mmbtu, higher by Rs 6/mmbtu (2.2%).
Wipro
We recommend a sell in Wipro stock from a short-term trading horizon. It is apparent from the charts of Wipro that it has been on a long-term downtrend from its February 2007 peak of Rs 690. Since then the stock has been forming lower peaks and lower troughs. In September, this downtrend accelerated and the stock witnessed a steep decline.
However, the stock found support at Rs 181 in late October and bounced back. We notice the formation of a descending triangle pattern spanning over the past two months, with the lower horizontal line at Rs 220. This pattern is a bearish continuation pattern.
On January 12, the stock plummeted by 9 per cent, accompanied with heavy volume. The stock is currently testing the lower horizontal line. The weekly relative strength index (RSI) features in the bearish zone.
We are bearish on the stock from a short-term perspective. We anticipate the stock to penetrate its lower horizontal line and decline until it hits our price target of Rs 204. Traders with short-term perspective can sell the stock, while maintaining a stop-loss at Rs 238.
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