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Friday, January 16, 2009
BSE Bulk Deals to Watch - Jan 16 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
16/1/2009 532134 BANK OF BARODA-PARI PASSU THE CHILDRENS INVEST FD MAGT UK LLP THE CHILDRENS INVET MASTER FD S 12216811 235.00
16/1/2009 532787 ESS DEE ALUM RELIANCE CAPITAL TRUSTEE CO LTD REKIANCE LONG TERM EQ FD B 285706 120.00
16/1/2009 532787 ESS DEE ALUM AKASH BHANSALI B 300000 120.00
16/1/2009 532787 ESS DEE ALUM MORGAN STANLEY MF AC MORGAN ST GROWTH FUND S 190513 120.16
16/1/2009 532787 ESS DEE ALUM MORGAN STANLEY INVT MGT INC AC MORGAN ST INIDA INVT FUND INC S 346000 120.00
16/1/2009 500720 FUTURA POLYS UPPALA KANTHARAO B 340313 4.41
16/1/2009 505576 GOLDCRES FIN PADMAKSHI FINANCIAL SERVICES LTD B 140000 15.78
16/1/2009 505576 GOLDCRES FIN BHARAT SHAH S 140000 15.78
16/1/2009 523160 MORGAN CRU MORGANITE CRUCIBLE LTD S 18290 45.54
16/1/2009 531952 RIBA TEXTILE MANISHRATILALSHAH S 43800 24.85
16/1/2009 531898 SANGUINE MD VISHU ENTERPRISE S 89005 7.02
16/1/2009 532765 USHER AGRO R U RAMCHANDANI S 269985 48.05
16/1/2009 531249 WELL PACK PA REKHA BHANDARI B 125000 41.15
16/1/2009 531249 WELL PACK PA GANDHI MANISHA NAVNEETLAL S 32000 41.15
NSE Bulk Deals to Watch - Jan 16 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
16-JAN-2009,APOLLOSIND,Apollo Sindhoori Capital,SUBRAMANIYAN P B,BUY,10000,53.00,-
16-JAN-2009,HCIL,HIMADRI CHEMICALS AND IND,HIMADRI DYES & INTERMEDIATES LTD,BUY,350000,89.52,-
16-JAN-2009,SATYAMCOMP,Satyam Computers Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,5248769,25.32,-
16-JAN-2009,SATYAMCOMP,Satyam Computers Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,3608973,24.69,-
16-JAN-2009,APOLLOSIND,Apollo Sindhoori Capital,SUBRAMANIYAN P B,SELL,382382,53.71,-
16-JAN-2009,HCIL,HIMADRI CHEMICALS AND IND,VIJAY KUMAR CHOUDHARY,SELL,350000,89.52,-
16-JAN-2009,SATYAMCOMP,Satyam Computers Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,5197307,25.29,-
16-JAN-2009,SATYAMCOMP,Satyam Computers Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,3635950,24.69,-
16-JAN-2009,UNITECH,Unitech Ltd,IFCI LTD.,SELL,17500000,29.52,-
Post Session Commentary - Jan 16 2009
Positive cues from the global markets along with news that Bank of America will receive fresh aid from the US government, led the pleasant closure of the Indian markets. The largest U.S. bank by assets, Bank of America Corp., received a $138 billion emergency salvation from the government to support its acquisition of Merrill Lynch & Co. and prevent the global financial crisis from intensifying. The U.S. government agreed to invest $20 billion more in Bank of America and guarantee $118 billion of assets as part of its commitment to maintain financial-market stability. Confidence that the US government will act to prevent the yearlong recession from deepening as well as firm European markets also supported the rally.
The domestic market today made sharp turnaround from the yesterday’s losses and opened higher on the back of positive Asian Markets. Further, market continued to gain ground on the back of sustained buying interest seen across board contributed mainly by US government aid for Bank of America. Though, volatility ruled the bourses in mid-afternoon trade, market managed to make a rebound to trade on firm note. During the final trading hours market gained the most to close the day with gains on huge buying. From the sectoral front, most of the indices ended in green and most of the buying was seen in Reality Oil & Gas, Power, Metal, PSU, Bank and Teck stocks. However, Reality stocks remained out of favour today. Midcap and Smallcap stocks remained quiet during the trading but managed to close in green terrain.
Among the Sensex pack 25 stocks ended in green territory and 5 in red. The market breadth remained in favor of advancers as 1241 stocks closed in green while 1162 stocks closed in red and 94 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 276.85 points at 9,323.59 and NSE Nifty ended up by 91.75 points at 2,828.45. The BSE Mid Caps and Small Caps ended with gains of 16.02 points and 2.29 points at 3,026.83 and 3,412.77 respectively. The BSE Sensex touched intraday high of 9,342.47 and intraday low of 9,125.65.
Gainers from the BSE Sensex pack are NTPC Ltd (7.69%), Reliance Infra (7.34%), Reliance (6.56%), Tata Power (4.89%), Hindalco (4.64%), RCom (4.79%), Bharti Airtel (4.77%), ONGC Ltd (3.72%), ICICI Bank (3.69%) and BHEL (3.24%).
Losers from the BSE Sensex pack are DLF Ltd (3.51%), TCS Ltd (1.38%), Grasim Indus (1.11%), ACC Ltd (0.27%) and Maruti Suzuki (0.22%).
The BSE Oil & Gas index outperformed among all the sectoral indices to close higher by (5.09%) or 287.66 points at 5,933.69. Major gainers are Reliance (6.56%), Reliance Natural Resources (4.05%), Cairn India (3.94%), Gail India (3.75%), ONGC Ltd (3.72%) and HPCL (2.59%).
The BSE Power index inclined (4.29%) or 72.74 points at 1,767.43. Gainers are Neyveli LIG (10.76%), NTPC Ltd (7.69%), Reliance Infra (7.34%), Suzlon Energy (5.42%), Tata Power (4.89%) and BHEL (3.24%).
The BSE Metal also contributed to the rally and ended up by (3.45%) or 166.41 points at 4,995.43. Main gainers are Steel Authority (7.70%), Sesa Goa Ltd (5.13%), Jindal Steel (4.17%), NMDC Ltd (3.86%), Hindalco (3.63%) and Welspan Gujarat SR (2.87%).
The BSE PSU index witnessed northward journey today to close higher by (3.36%) or 165.09 points to at 5,085.20 as Neyveli LIG (10.76%), Steel Authority (7.70%), NTPC Ltd (7.69%), NMDC Ltd (3.86%), Gail India (3.75%) and NMDC Ltd (3.86%), ended in green.
The BSE Bank index gained on hopes lower interest rates may boost lending growth and on expectations of strong Q3 December 2008 results and advanced (2.42%) or 118.96 points to close at 5,037.84 as Federal Bank (9.41%), Yes Bank (4.21%), ICICI Bank (3.69%), Bank of India (3.28%), Kotak Bank (3.10%) and Union Bank (3.09%) ended in positive territory.
The BSE Reality index underperformed the benchmark indices to close with losses of (2.39%) or 42.26 points at 1,723.76. Scrips that lost are Unitech Ltd (5.49%), Mahindra Life (4.27%), DLF Ltd (3.51%), Indiabull Real (3.34%) and Orbit Co (0.75%).
Third quarter results to dictate trend
The ongoing quarterly reporting season may dictate the market trend in the near term. Investors are bracing for poor quarterly earnings as high input costs, credit crunch, high interest rates, and the burden of piled-up inventories may hit bottom lines of companies. India's largest private sector firm by market capitalisation and oil refiner Reliance Industries will unveil its Q3 December 2008 results on 22 January 2009.
The quarterly earnings season was kicked off by Infosys Technologies on a positive note with stronger-than-expected results on 13 January 2009. So far, aggregate results of 83 companies showed 19.40% rise in net profit on a 36.60% increase in net sales in Q3 December 2008 over Q3 December 2007.
Industry representatives will meet government officials on 21 January 2009 to discuss further measures to stimulate country's economy, Trade Minister Kamal Nath had said on 12 January 2009.
On 2 January 2009, the Reserve Bank of India (RBI), cut the repo rate and the reverse repo rate by 100 basis points each, with immediate effect. Repo rate is the rate at which RBI lends to commercial banks and reverse repo rate is the rate at which RBI accepts deposits from banks. After the latest cuts, the repo rate is now at 5.5% and the reverse repo is now at 4%, the lowest ever.
The RBI also announced a cut in cash reserve ratio, the proportion of deposits banks must keep with the central bank, by 50 basis points to 5% with effect from 17 January 2009. Lower interest rates may revive the domestic economy, which has been slowing faster than expected due to high interest rates and the global financial crisis.
Meanwhile, global cues turned positive after Bank of America Corporation, the largest US bank by assets, received a $138 billion emergency lifeline from the US government late on Thursday, 15 January 2009, to support its acquisition of Merrill Lynch & Company and prevent the global financial crisis from deepening.
Bank of America Corp will receive $20 billion in fresh government cash and a federal backstop against $118 billion of bad assets to help the bank absorb Merrill Lynch & Co.
Closer home, Jaiprakash Associates, Dr. Reddy's Laboratories, Hero Honda Motors, KS Oils, LIC Housing Finance, Mangalore Refinery & Petrochemicals, Mahindra Lifespace Developers, Nagarjuna Fertilisers & Chemicals, Reliance Capital, Reliance Petroleum, Tata Coffee, United Breweries, Rolta India, Religare Enterprises, United Breweries (Holdings), Wockhardt, Bank of Rajasthan, Gujarat NRE Coke, Jaypee Hotels, Reliance Industrial Infrastructure, Allahabad Bank, Apollo Tyres, BASF India, Great Offshore, Madras Aluminium Company, MindTree, Punjab Tractors, REI Agro, State Bank Of Mysore, amd State Bank of Travancore, among others will declare their December 2008 ended quarter results next week.
Market drifts lower in volatile trade
Volatility ruled the roost as weak global markets and concerns about the US banking sector pulled the domestic bourses lower. Nevertheless, lower inflation and improved industrial production numbers ensured that the fall in share prices was not steep.
FII outflow in January 2009 totaled Rs 1174.20 crore (till 14 January 2009). FIIs had pulled out a massive Rs 52,998.70 crore in calendar year 2008, as against an inflow of a huge Rs 71,486.50 crore in calendar year 2007.
The BSE 30-share Sensex fell 82.88 points or 0.88% to 9,323.59 in the week ended 16 January 2009. The S&P CNX Nifty fell 44.55 points or 1.55% at 2828.45 in the week.
The BSE Mid-Cap index fell 93.96 points or 3.01% to 3,026.83 and the BSE Small-Cap index fell 142.83 points or 4.02% to 3,412.77 in the week.
The barometer index BSE Sensex is 11883.18 points or 56.03% below its all-time high of 21,206.77 struck on 10 January 2008.
Key benchmark indices, remained in negative zone throughout the day, extending losses for the third straight day on 12 January 2009 led by sustained selling in index pivotals. Concerns about corporate governance standards at Indian firms and weak global markets dampened investor sentiment offsetting an improved industrial production data. The BSE 30-share Sensex lost 296.42 points or 3.15% to 9,110.05. The S&P CNX Nifty lost 99.90 points or 3.48% at 2,773.10.
Key benchmark indices extended losses for the fourth day in a row 13 January 2009. 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 slipped 38.69 points or 0.42% to 9,071.36. The S&P CNX Nifty fell 28.15 points or 1.02%, at 2744.95. Weak global markets weighed on the domestic bourses.
Key benchmark indices snapped four-day declining trend on 14 January 2009 led by frenzied buying in index heavyweight Reliance Industries (RIL) and IT pivotals. Strong buying momentum was seen in stocks of Anil Dhirubhai Ambani Group (ADAG) and Mukesh Ambani group in late trade on speculation the two warring Ambani brothers will reach out-of-court settlement over supply of gas from Reliance Industries (RIL)'s KG basin. However, RIL denied rumours of out-of-court settlement. The BSE 30-share Sensex surged 299.13 points or 3.30% at 9370.49. The S&P CNX Nifty gained 90.35 points or 3.29% at 2835.30.
Weak global equities and a deepening banking crisis in the United States pulled the domestic bourses lower in choppy trade on 15 January 2009. The BSE 30-share Sensex lost 323.75 points or 3.45% at 9,046.74. The S&P CNX Nifty lost 98.60 points or 3.48% at 2,736.70.
Index heavyweight Reliance Industries (RIL) led a rally on the bourses on 16 January 2009, triggered by the US government rescue of the largest US bank by assets, Bank of America. Optimism that the US government will act to prevent the year-long recession from deepening also aided the surge on the domestic bourses. The BSE 30-share Sensex gained 276.85 points or 3.06% to 9,323.59. The S&P CNX Nifty advanced 91.75 points or 3.35% to settle at 2828.45.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) spurted 5.85% after the company during trading hours on Thursday (15 January 2009), said its unit Reliance Petroleum (RPL) will start fuel exports from its new refinery this month. RPL, last month, commissioned its 5,80,000-barrels-per-day only for exports refinery at Jamnagar in Gujarat. RPL fell 0.75%
India's second largest private sector bank by net profit HDFC Bank shed 7.48, after the bank's gross net performing assets (NPA) rose 120.47% to Rs 1911.41 crore as at 31 December 2008 from Rs 866.97 crore as on 31 December 2007.
TCS, India's largest software services exporter by sales, fell 6.10%. on posting a lower-than-expected rise in net profit in Q3 December 2008. Tata Consultancy Services (TCS)'s standalone net profit as per Indian GAAP rose 3.31% to Rs 1,211.89 crore on 3.07% rise in sales to Rs 5,875.48 crore in Q3 December 2008 over Q2 September 2007. The TCS management said currency volatility had hit the growth of its revenue in Q3 December 2008.
The company reported a foreign exchange loss of Rs 250 crore, of which Rs 45 crore was a mark-to-market loss and the rest were hedging losses. TCS said that it added 41 new clients in Q3 December 2008 and hired 11,773 new employees.
India's fourth largest software services exporter Satyam Computer Services rose 2.52% after a member of the newly-nominated board, Deepak Parekh, said after trading hours on Thursday that Satyam had Rs 1700 crore in receivables and might not need financial help if payments arrived on time. The stock had plunged about a third on Thursday after the government said it was not considering a bailout package.
Meanwhile UK-based investment bank Lazard Asset Management sold over 1.13 crore shares of Satyam in a bulk deal on the Bombay Stock Exchange at Rs 21.71 per share on Thursday, 15 January 2009. On the same day, Lazard sold 2.44 crore shares at Rs 21.74 a piece on the National Stock Exchange. Overall, the firm has sold 5.3% out of the 7.34% it holds in Satyam.
India's fifth largest software firm by sales HCL Technologies gained 7.24% ahead of its Q2 December 2008 results on 23 January 2009.
Software firm Rolta India slumped 23.28% amid rumours that creditors with whom promoters had pledged their stake have resorted to fire sales in the open market. Rolta's chairman K K Singhm however, denied rumours that creditor had sold shares pledged by the promoters.
India's second largest software services exporter by sales Infosys Technologies soared 6.12% 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 on 13 January 2009.
Car sales in India fell 7% to 82,105 units in December 2008 over December 2007, the fifth drop in six months as high borrowing costs, tight credit and a slowing economy weighed on demand. Sales of trucks and buses fell sharply by 58% to 17,920 units in December 2008 over December 2007.
India's infrastructure sector output grew 2.2% in November 2008 over November 2007, government data showed on Monday (12 January 2009). The figure was below 3.4% annual growth in October 2008 over October 2007. Output had risen an annual 5.1% in November 2007, and in the 2007/08 fiscal year it rose 5.6% from a year earlier. The infrastructure sector accounts for 26.68% of India's industrial output.
India's GSM telecom companies have added over 8.1 million mobile customers in December 2008 (excluding Reliance Telecom) maintaining the robust pace in the world's fastest-growing mobile market. According to the latest data released by Cellular Operators' Association of India (COAI), the total GSM subscriber base rose to 257.85 million, up from 249.35 million in November 2008, a sequential growth of about 3.25% in December 2008. Worldwide, GSM-led mobile technology is more popular than rival CDMA.
Sensex jumps 3% on US government aid for Bank of America
Index heavyweight Reliance Industries (RIL) led a rally on the bourses triggered by the US government rescue of the largest US bank by assets, Bank of America. Optimism that the US government will act to prevent the year-long recession from deepening also aided the surge on the domestic bourses. The BSE 30-share Sensex gained 276.85 points or 3.06%. RIL rose nearly 7%. The market was in green throughout the day.
However, foreign funds dumped stocks today, 16 January 2009, even as domestic funds bought. As per the provisional data released by the stock exchanges after trading hours, foreign funds sold shares worth a net Rs 585.41 crore. Domestic funds bought shares worth a net Rs 400.73 crore.
A bout of volatility was witnessed mid-afternoon trade when after a sudden fall the market immediately staged a rebound. A government official said the Reserve Bank of India (RBI) is unlikely to cut key policy interest at its monetary policy review later this month, causing the sudden slide.
Falling inflation has raised expectations that the central bank may further cut interest rates to soften the impact of the global financial crisis and economic recession in key world economies on the Indian economy. The Reserve Bank of India (RBI) has substantially eased monetary policy over the past few months.
European markets opened firm today, 16 January 2009, snapping a seven-session losing run, following a late rally in the United States on Thursday, 15 January 2009. Key benchmark indices in France, Germany and UK were up by between 1.86% and 2.73%.
Asian stocks surged on news of US government aid for Bank of America. In Japan, the Nikkei 225 average jumped 2.58%. Key benchmark indices in China, Singapore, Hang Seng, South Korea, and Taiwan were up by between 0.09% and 2.15%.
Trading in US index futures indicated the Dow could rise 118 points at the opening bell on Friday, 16 January 2009
US stocks ended slightly higher on Thursday, 15 January 2009, recovering from an early slump, amid optimism the government will act to prevent the year-long recession from deepening, offsetting news that Bank of America was seeking fresh government aid, which fueled worries about the health of the financial sector. The Dow Jones Industrial Average rose 12.67 points, or 0.15%, to 8,212.81. The S&P 500 Index gains 1.12 points, or 0.13%, to 843.74. The Nasdaq Composite Index rose 22.20 points, or 1.49%, to 1,511.84.
In response to indications that the recession is deepening, Democratic leaders in the US House of Representatives on Thursday unveiled an $825 billion tax cut and spending bill. After the closing bell, the US Senate rejected an attempt to block the release of the remaining $350 billion from the financial bailout fund.
As part of the emergency plan announced by the Treasury Department, the US Federal Reserve and Federal Deposit Insurance Corp, Treasury will provide Bank of America, the largest US bank by assets, with $20 billion in fresh capital from a government bailout fund in exchange for preferred stock. The government also agreed to share in losses on the troubled assets, which Bank of America took on when it paid an estimated $19.4 billion for Merrill on 1 January 2009
The European Central Bank (ECB) cut its benchmark interest rate by 50 basis points to 2% on Thursday, 15 January 2009, matching its lowest ever rate. The ECB President Jean-Claude Trichet said inflation risks continued to diminish as the economy weakened.
The BSE 30-share Sensex gained 276.85 points or 3.06% to 9,323.59. Sensex opened 78.91 points higher at 9125.65, also its day's low. The Sensex gained 295.73 points at day's high of 9,342.47 in late trade.
The S&P CNX Nifty advanced 91.75 points or 3.35% to settle at 2828.45. Nifty January 2009 futures were at 2821.50, a discount of 6.95 points compared over the spot closing.
The BSE Sensex has lost 323.72 points or 3.35% so far in 2009 from its close of 9647.31 on 31 December 2008. The barometer index had lost 10639.68 points or 52.44% in the calendar year 2008
The market breadth, indicating the overall health of the market, was positive on BSE with 1247 shares advancing as compared with 1175 that declined. 91 shares remained unchanged.
The BSE Mid-Cap index rose 0.53% at 3,026.83 and the BSE Small-Cap index gained 0.07% at 3,412.77. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2930 crore as compared to Rs 2,904.93 crore on Thursday, 15 January 2009. Turnover in NSE's futures & options segment slipped to Rs 32716.71 crore as compared to Rs 40218.44 crore on Thursday, 15 January 2009.
The BSE Capital Goods index (up 1.83%), BSE Consumer Durables index (up 0.88%), the BSE FMCG index (up 1.27%), the BSE Auto index (up 1%), BSE HealthCare index (up 0.86%), the BSE Teck index (up 2.18%), BSE IT index (up 1.03%), the BSE Bankex (up 2.42%), BSE Realty index (down 2.39%), underperformed the Sensex.
The BSE Metal index (up 3.45%), BSE Oil & Gas index (up 5.09%), the BSE PSU index (up 3.36%), the BSE Power index (up 4.29%), outperformed the Sensex.
Among the 30-member Sensex pack, 26 advanced while only 4 of them declined. Tata Power (up 5.11%), Reliance Infrastructure (up 7.30%), and ITC (up 2.20%), edged higher from the Sensex pack.
Maruti Suzuki India (down 1.31%), and Grasim (down 0.34%), edged lower from the Sensex pack.
India's largest power generation company in terms of sales NTPC jumped 7.54% to Rs 176.90 on 18.76 lakh shares. It was the top gainer from the Sensex pack. The company's board of directors at its meet held on 13 January 2009 approved investment of Rs 6,037 crore in super thermal power projects in Madhya Pradesh, Uttar Pradesh and Chattisgarh.
India's second largest private sector power generation firm by sales Tata Power Company rose 5.11% to Rs 775 after a block deal of one lakh shares was executed on NSE at Rs 758 per share. The block deal constituted 0.05% of the company's equity.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) spurted 6.76% to Rs 1220.65 on 22.21 lakh shares. The stock surged after the company during trading hours on Thursday said its unit Reliance Petroleum (RPL) will start fuel exports from its new refinery this month. RPL, last month, commissioned its 5,80,000-barrels-per-day only for exports refinery at Jamnagar in Gujarat. RPL gained 2.19%
India's largest oil exploration firm by market capitalisation Oil and Natural Gas Corporation (ONGC) vaulted 3.73% to Rs 648.20 on reports the company will invest $5.3 billion in developing gas finds in two of its eastern offshore KrishnaGodavari basin blocks to produce 25 million standard cubic meters per day of gas by 2013.
State run oil marketing firms rose as crude oil prices fell. HPCL (up 2.76%), BPCL (up 1.85%), and IOC (up 2.08%), gained.
Crude prices fell on Thursday, 15 January 2009, on unemployment benefit claims in US, the world`s largest oil consumer rose and organisation of petroleum exporting countries (Opec's) expectation that oil demand will fall in 2009. Light, sweet crude for February delivery fell $1.88, to $35.40 a barrel on the New York Mercantile Exchange (NYMEX). Lower oil prices will reduce losses at the state-run oil firms on domestic sale of cooking gas and kerosene at a controlled price.
Telecom pivotals surged on bargain hunting after a recent slide. India's largest cellular services provider by sales Bharti Airtel gained 4.63% to Rs 632 after declining 6.94% in one week to 15 January 2009. India's second largest cellular services provider by sales Reliance Communications rallied 4.19% to Rs 181.55 after sliding 15.62% in a week to 15 January 2009
IT pivotals underperformed the Sensex after TCS Chief executive S. Ramadorai said market conditions are tough and on firm rupee. Shares of TCS, India's largest software services exporter by sales, fell 1.47% to Rs 502.50. Ramadorai said almost all sectors are facing stress and almost all geographies are facing problems. TCS does not give guidance and hence management comments are watched closely.
After market hours on Thursday, 15 January 2009, TCS reported 3.31%% rise in standalone net profit as per Indian GAAP to Rs 1,211.89 crore on 3.07% rise in sales to Rs 5,875.48 crore in Q3 Decmeber 2008 over Q2 September 2007. The TCS management said currency volatility had hit the growth of its revenue in Q3 December 2008.
India's third largest software services exporter, Wipro, rose 1.55% to Rs 238.95, off day's low of Rs 229. Wipro's ADR fell 1.24% on Thursday, 15 January 2009. Wipro unveils its Q3 December 2008 results on 21 January 2009.
India's second largest software services exporter Infosys Technologies rose 1.27% to Rs 1268, recovering from low of Rs 1238.60. Infosys' ADR advanced 2.72% on Thursday, 15 January 2009.
India's fourth largest software services exporter Satyam Computer Services galloped 21.92% to Rs 24.75, on high volumes of 6.14 crore shares after the member of the newly-nominated board, Deepak Parekh, said after trading hours on Thursday that Satyam had Rs 1700 crore in receivables and might not need financial help if payments arrived on time. The stock had plunged about a third on Thursday after the government said it was not considering a bailout package.
Meanwhile UK-based investment bank Lazard Asset Management sold over 1.13 crore shares of Satyam in a bulk deal on the Bombay Stock Exchange at Rs 21.71 per share on Thursday, 15 January 2009. On the same day, Lazard sold 2.44 crore shares at Rs 21.74 a piece on the National Stock Exchange. Overall, the firm has sold 5.3% out of the 7.34% it holds in Satyam.
India's fifth largest software firm by sales HCL Technologies gained 8.24% to Rs 118.25 ahead of its Q2 December 2008 results on 23 January 2009.
The Indian rupee rose today as domestic shares crept up tracking other regional markets and raised hopes for fresh capital inflows. The partially convertible rupee was at 48.77/78 per dollar, stronger than its Thursday's close of 49.03/04. A firm rupee negatively impacts operating margins of IT firms as the sector derives a lion's share from exports
Banking shares gained on hopes lower interest rates may boost lending growth and on expectations of strong Q3 December 2008 results. ICICI Bank (up 2.82%), HDFC Bank (up 1.68%), and State Bank of India (up 1.59%), rose.
Federal Bank surged 9.27% to Rs 155.65 on posting 98.1% rise in net profit to Rs 203.89 crore in Q3 December 2008 over Q3 December 2007. The results were announced during market hours today, 16 January 2009.
India's largest engineering and construction company by sales Larsen & Toubro advanced 1.46% to Rs 715.10 after it the company entered into a deal with Westinghouse Electric for 1,000 megawatt nuclear reactors in India. Westinghouse Electric is a unit of Japan's Toshiba Corp
India's top power equipment maker by sales Bharat Heavy Electricals (Bhel) rose 3.05% to Rs 1395. On 14 January 2009, the company signed a deal with Karnataka Power Corporation for constructing a 660 megawatt thermal power plant at Edlapur in Raichur district of Karnataka and two thermal units of 800 megawatt capacity each in Raichur.
Metal shares gained as copper prices rose on the commodities market. Tata Steel (up 2.50% to Rs 202.75), Hindalco (up 4.15% to Rs 50.25), and Sterlite Industries (up 2.31% to Rs 259.55), gained.
Auto shares rose on hopes lower interest rates and fall in fuel prices would spur demand for vehicles which is mainly driven by finance.
India's largest tractor maker by sales Mahindra & Mahindra (M&M) rose 0.45% to Rs 320.50. M&M, which bought a controlling stake in the Pune-based two-wheeler manufacturer, Kinetic Motors, in August 2008, plans to re-launch the Kinetic range of scooters by the end of this month.
India's largest truck maker by sales Tata Motors rose 0.50% to Rs 151.90 after its Amercian depository receipt jumped 4.40% on Thursday, 15 January 2009.
Bajaj Auto jumped 7.69% to Rs 472 on improvement in a key profit margin parameter in Q3 December 2008 over Q2 September 2008, despite adverse market conditions. The company's EBITDA (earnings before interest, tax, depreciation and amortization) margin stood at 14.5% in Q3 December 2008, higher than 13.6% in Q2 September 2008, Bajaj Auto said at the time of announcing Q3 December 2008 results during trading hours today, 16 January 2009.
India's fourth largest pharma company by market capitalisation Ranbaxy Laboratories rose marginally by 0.07% to Rs 216.15 after striking day's high of Rs 224. The company is reportedly planning to exit its Japanese joint venture - Nihon Pharmaceuticals Industry (NPI) by selling 50% stake after the Indian drug maker was acquired by Japanese drug major Daiichi Sankyo. Ranbaxy will sell the stake back to its Japanese partner Nippon Chemiphar. Ranbaxy's stake in the six-year-old joint venture is estimated at Rs 30.50 crore.
Nippon Chemiphar, a Tokyo stock exchange-listed mid-sized drug company, competes with Ranbaxy's owner Daiichi Sankyo in several therapeutic categories in the Japanese market.
The Satyam mega accounting scandal weighed on realty shares on market perception that a number of realty firms do not strictly follow good corporate governance practices. Mahindra Lifestyle (down 4.27%), Indiabulls Real Estate (down 3.34%), and Unitech (down 5.59%), edged lower.
Akruti City rose 2.52% to Rs 636.20. The National Stock Exchange after market hours yesterday, 15 January 2009 informed the open interest in the underlying security reached 90% of the specified market wide position limit in the futures & options segment.
Puravankara Projects slumped 6.03% to Rs 36.65. The stock recovered after sliding to a low of Rs 25.60 on a clarification by the company that it is not pulling out of a major project in Andhra Pradesh.
India's largest real estate firm by market capitalisation DLF slumped 3.44% to Rs 195.35 on high volumes of 42.93 lakh shares. As per recent reports the company is planning to turn down its special economic zone (SEZ) plans, battered by low demand for real estate. The company is planning to start five of its SEZs after 2010 when demand revives.
Hindustan Construction Company tumbled 11.10% to Rs 43.25 on reporting a 7.38% fall in net profit to Rs 23.20 crore in Q3 December 2008 over Q3 December 2007. The company announced the results during trading hours today, 16 January 2009.
Reliance Industries was the turnover topper on BSE with turnover of Rs 266.50 crore followed by Satyam Computer Services (Rs 152.85 crore), Reliance Capital (Rs 120.85 crore), Reliance Infrastructure (Rs 115.45 crore) and Educomp Solutions (Rs 103.75 crore).
Satyam Computer Services led the volume chart on BSE clocking volumes of 6.15 crore shares followed by Unitech (2.60 crore), Reliance Natural Resources (1.65 crore), Bank of Baroda (1.24 crore) and Suzlon Energy (69.30 crore).
Stocks at Wall Street manage a turnaround
A late hour rally helps indices erase all their losses
Stocks at Wall Street showed signs of improvement on Thursday, 15 January, 2008. Disappointing economic data, falling crude price and the overall financial sector weighed on Wall Street earlier today. Nevertheless, indices pared all their losses and managed to eke out some gains after a long time. News of Bank of America might requiring bailout money to finance the Merrill Lynch acquisition unnerved investors once again today.
After opening 68 points lower earlier in the day, The Dow Jones Industrial Average was down by more than 200 points at one point of time. It dropped below the 8,000 mark for first time since November, 2008. At the end, it ended higher by 12.3 points at 8,212, the Nasdaq closed higher by 22.2 points at 1,511 and the S&P 500 closed higher by 1.1 points at 843.74.
Eight of the ten sectors ended higher today. Telecom and financials were the only laggards.
Inspite of a better than expected earning report from JP Morgan Chase, the financial sector has come to little help for the market.
But the news that had been really bothering market today was the reports that Bank of America is close to receiving aid from the U.S. government to help in its acquisition of Merrill Lynch. Bank of America has already received more than $25 billion in aid.
Among major economic reports for the day, the Federal Reserve Bank of Philadelphia's reported on Thursday, 15 January, 2009 that manufacturing conditions in the Philadelphia region continued to be "depressed" in early January, 2009. The Philly Fed index improved to negative 24.3 from a downwardly revised negative 36.1 in December. While still sharply negative, the index was better than the negative 36.0 expected.
The Labor Department reported on Thursday, 15 January, 2009 that first-time applications for state unemployment benefits rose 54,000 to a seasonally adjusted 524,000 in the week ending 10 January,2009. However, the four-week average of new claims fell 8,000 to 518,500, a level that is 55% higher than the average during the same period in the prior year.
The report also detailed that the number of people collecting benefits in the week ending 3 January, 2009 fell 115,000 to 4.5 million, a level that is 64% higher than the prior year. The four-week average of continuing claims rose 27,500 to 4.5 million, the highest level since December 1982. The insured unemployment rate remained at 3.4%.
In another separate report, the December Producer Price Index fell 1.9% month-over-month, which wasn't quite as bad as the 2.0% downturn that was expected. The prior reading shows a 2.2% decline. Excluding food and energy, producer prices were up 0.2% month-over-month.
In the technology sector, RIMM and Qualcomm helped the sector gain ground which otherwise witnessed good losses from Apple and Motorola. Apple fell after CEO Steve Jobs announced that he is taking medical leave till June, 2009.
On the other hand, Motorola issued a cautious outlook and announced additional job cuts. The company will cut roughly 4,000 employees this year. That's in addition to the 3,000 cuts already announced.
Tomorrow, Citigroup is expected to garner the most attention as the company is expected to report its fifth consecutive quarterly loss. Economic data for the day includes December CPI and industrial production scheduled before market opens. University of Michigan will release its consumer sentiment survey
Market seen opening firm on global cues
Positive global cues are likely to trigger a firm start in the key benchmark indices today, 16 January 2009 after seeing a savage cut in what was a equity global rout yesterday, 15 January 2009. The SGX Nifty index futures for January 2009 series rose 16 points in Singapore. However India's largest software services exporter TCS' lower-than-expected rise in quarterly profit reported after market hours on Thursday, 15 January 2009 may curtail gains.
Tata Consultancy Services posted 2.68% rise in net profit of Rs 1,362 crore for the quarter ended December 2008 over quarter ended December 2007. Revenues stood at Rs 7,277 crore for the reporting quarter, up 24.13% year-on-year. Market conditions were tough as global economic turmoil crimps outsourcing demand and puts pressure on fees, the company said.
Bajaj Auto, Federal bank, Jet Airways, and Hindustan Construction Company, among others will declare their Q3 December 2008 results today, 16 January 2009. Aggregate results of 83 companies showed 19.40% rise in net profit on a 36.60% increase in net sales in Q3 December 2008 over Q3 December 2007.
Asian markets were trading higher today, 16 January 2009, mirroring Wall Street. China's Shanghai Composite rose 2.08% or 40 points at 1,960.21, Japan's Nikkei advanced 1.27% or 101.62 points at 8,124.93, Singapore's Straits Times was up 0.50% or 8.54 points at 1,712.60, South Korea's Seoul Composite was flat at 1,111.99 and Taiwan's Taiwan Weighted gained 0.76% or 32.83 points at 4,353.60. However, Hong Kong's Hang Seng slipped 0.52% or 68.98 points at 13,173.98.
US stocks ended slightly higher on Thursday, 15 January 2009, recovering from an early slump, amid optimism the government will act to prevent the year-long recession from deepening, offsetting news that Bank of America was seeking fresh government aid, which fueled worries about the health of the financial sector.
The Dow Jones Industrial Average rose 12.67 points, or 0.15%, to 8,212.81. The S&P 500 Index gains 1.12 points, or 0.13%, to 843.74. The Nasdaq Composite Index rose 22.20 points, or 1.49%, to 1,511.84.
Back home, weak global equities and a deepening banking crisis in the United States pulled the domestic bourses lower in choppy trade on Thursday, 15 January 2009. The BSE 30-share Sensex lost 323.75 points or 3.45% at 9,046.74 and the S&P CNX Nifty lost 98.60 points or 3.48% at 2,736.70
Foreign institutional investors (FIIs) were net sellers worth Rs 484.33 crore while mutual funds bought shares worth Rs 175.12 crore on Thursday, 15 January 2009, according to provisional data on NSE.
Pre Session Commentary - Jan 16 2009
Today the markets are likely to open positive as the US markets closed with moderate gains and the Asian markets have opened positive. After a brutal loss in yesterday’s trade one could witness some bounce back today. The WPI inflation numbers recorded at 5.24% for the weak ended January 3 2009 better than 5.91% in the previous weak. The sentiments prevailing across the markets in the world are weak and therefore any fall in other Asian markets during the later trading session could affect the domestic markets’ movements. One could witness some bounce back with volatile trading in today’s trading session.
On Thursday, the markets closed in deep red. After a negative gap opening, the markets continued to fall towards the southward. The bearish sentiments had emanated from US and finally afflicted the Asian markets as well. The bears had a complete hold of the markets and therefore selling pressure was witnessed across the broader markets. The heavy stocks like ICICI bank, Jaiprakash, Sterlite and Tata Steel faced the severe blaze of the bears. All the sectors closed in red and sectors like Bankex, Realty, Metal and Realty were brutally shattered as they fell by 5.69%, 4.72%, 4.53% and 4.11% respectively. Sensex and Nifty lost 3.45% and 3.48% respectively. Mid caps and Small caps also lost by 1.72% and 2.16% respectively. During the session we expect the markets to be trading volatile.
The BSE Sensex closed lower by 323.75 points at 8,946.62 and NSE Nifty ended lower by 98.60 points at 2,736.70. The BSE Mid Caps and Small Caps ended with losses of 52.67 points and 75.21 points at 3,010.81 and 3,410.48 respectively. The BSE Sensex touched intraday high of 9,123.78 and intraday low of 8,946.62.
On Thursday, the US markets closed in green. The markets bounced back to record moderate gains as the investors gave some support. Eight out of 10 sectors closed in green as telecom and financials were the only sectors that faced losses of 1.1% and 5.1% respectively. JPMorgan Chase reported fourth quarter adjusted earnings of $0.07 per share, which was better than the break-even level that Wall Street was expecting. The Wall Street Journal reported that Bank of America is close to receiving additional federal aid to assist in the acquisition of Merrill Lynch, even though the bank has already received $25 billion in federal funds. Crude oil futures for the month of February delivery fell by $2.03 to $35.25 per barrel on New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 12.35 points at 8,212.49 NASDAQ index rose by 22.20 points at 1,511.84 and the S&P 500 (SPX) also closed higher by 1.12 points at 843.74.
Indian ADRs ended down. In technology sector, Satyam plunged by 20.33% and Wipro lost 1.24%. Further Patni Computers ended with decrease of 3.46% while Infosys gained 2.72%. In banking sector ICICI Bank lost 3.74% along with HDFC Bank ended down by 2.70%. In telecommunication sector, Tata Communication dropped by 5.24% and MTNL tumbled 1.66%. Sterlite Industries decreased by 1.87%.
Today major stock markets in Asia have opened with gains. The Shanghai Composite is trading high by 42.88 points at 1,963.09 while Hang Seng is high by 63.57 points at 13,306.53. Further Japan''s Nikkei is trading high by 121.08 points at 8,144.39. South Korea’s Seoul Composite is high by 10.02 points at 1,121.36 and Singapore’s Strait Times is also high by 15.06 points at 1,719.12.
The FIIs on Thursday stood as net buyer in equity and net sellers in debt. Gross equity purchased stood at Rs 1689.70 Crore and gross debt purchased stood at Rs 212.90 Crore, while the gross equity sold stood at Rs 1614.80 Crore and gross debt sold stood at Rs 573.90 Crore. Therefore, the net investment of equity and debt reported were Rs 74.80 Crore and Rs (361.10) Crore respectively.
On Thursday, Indian Rupee closed at 49.03/04 per dollar, 0.4% weaker than Wednesday’s close of 48.85/86. The rupee weakened due to drastic fall in stock markets concerning weak flow of foreign capital.
On BSE, total number of shares traded were 27.72 Crore and total turnover stood at Rs 2,904.93 Crore. On NSE, total number of shares traded were 61.76 Crore and total turnover was Rs 8,178.88 Crore.
Top traded volumes on NSE Nifty – Unitech with 49924290 shares, Suzlon Energy with 13952090 shares, Reliance Comm with total volume traded 13821308 shares, ICICI Bank with 9696693 shares followed by SAIL with 9526154 shares.
On NSE Future and Options, total number of contracts traded in index futures was 980691 with a total turnover of Rs 12,321.88 Crore. Along with this total number of contracts traded in stock futures were 926736 with a total turnover of Rs 8,775.73 Crore. Total numbers of contracts for index options were 1280468 with a total turnover of Rs 18,288.86 Crore and total numbers of contracts for stock options were 75042 and notional turnover was Rs 831.97 Crore.
Today, Nifty would have a support at 2,679 and resistance at 2,798 and BSE Sensex has support at 8,890 and resistance at 9,175.
Market may remain volatile
The market may witness cautious trend as US indices ended on a positive note yesterday and Asian indices are exhibiting upward trends in morning trades. Although the bias remains positive, investors should maintain caution as profit-taking at higher levels may pull down the market. Among the local indices the Nifty could test 2670 on the downside while on the upper side it may move up to 2770. The Sensex has a likely support at 8950 and may face resistance at 9200.
US indices finished on a positive note on Thursday. While the Dow Jones ended in positive at 8212 advanced by 12 points, the Nasdaq up by 22 points at 1512.
All the Indian ADRs except Infosys and Tata Motors, which rose by 2.72% and 4.40% respectively, fell in tune with the broader market. Satyam led the slump and tumbled 20.33% followed by Rediff (down 5.50%), VSNL, ICICI Bank, Patni Computer, HDFC Bank, Dr Reddy, MTNL and Wipro. All these ADRs slipped by over 1-5% each.
Crude oil prices inched higher in the US market, with the Nymex light crude oil for February 09 delivery adding 11 cents to close at $35.51 a barrel. In the commodity space, the Comex gold for March 09 series lost $1.50 to settle at $807.30.
Trading Calls - Jan 16 2009
Nifty (2737) Sup 2695 Res 2790
Buy M&M (320) SL 315
Target 328, 330
Buy IVRCL Infra (116) SL 112
Target 124, 125
Buy Reliance Capital (413) SL 406 Target 422, 426
Sell Crompton Greaves (133) SL 138 Target 126, 122
Daily News Roundup - Jan 16 2009
GAIL may get exclusive marketing rights for distribution of Reliance Industries D6 gas from KG Basin. (ET)
Ranbaxy has missed the deadline to convert equity warrants issued by Jupiter Bioscience. (ET)
M&M plans more launches in 2010. (ET)
Essar’s Aegis may bid for Satyam BPO. (ET)
Lazard plans to sell its 5.3% holding in Satyam. (ET)
IndiGo plans to lease 6 new A320’s this year. (ET)
Kingfisher gets approval to Kuala Lumpur, Bangkok and Singapore. (ET)
PSU oil companies hike ATF prices by 3.4%. (ET)
World Bank plans to issue Power Grid US$1bn loan. (ET)
Mutual funds willing to bail out cash strapped Unitech. (ET)
Three new directors join Satyam board Mr Tarun Das, Mr T.N. Manoharan and Mr Suryakant Balkrishna Mainak. (BL)
Hiranandani Group has cancelled a sub contract awarded to Maytas Infrastructures for development of a township in Chennai. (FE)
Tyre majors cut prices sharply. (FE)
Punj Lloyd bagged a Rs13.1bn contract in JV with Public Works Company Tripoli for execution of utilities in Libya. (FE)
Leela Group puts 3 of its ventures on hold. (FE)
ICAI says KPMG cannot be auditors to Satyam since it is not registered. (BL)
Ancillary units for the Nano project are in talks with Tata Motors for compensation. (BL)
Reliance Industries to commence exports from its Jamnagar SEZ from this month. (BL)
IFC likely to sanction US$12m loan to PT TVS Motor Company, Indonesia, a subsidiary of TVS Motor. (BL)
ONGC has inked MoU with Australia’s Arrow Energy for co-operation in the coal bed methane sector. (BL)
Matrix Labs assigned purchase rights for a portion of Astrix Laboratories Ltd to its parent company, MP Laboratories (Mauritius) Ltd. (BL)
Andhra Bank reduced the BMPLR by 75 basis points. (BL)
Ranbaxy Laboratories plans to exit its Japanese JV — Nihon Pharmaceuticals. (BS)
Motorola plans to shut its India unit. (ET)
GTL plans buy back of shares up to 25% of its networth. (BS)
JV between Sasken and the Tata Group formed almost two years ago has been called off. (BS)
Maytas Infrastructure may lose Hyderabad Metro project. (BS)
ADAG rethinks its foray into steel, shipping sectors. (BS)
Inflation dips to 5.24%, its lowest level since February 2008, on cheaper food items. (ET)
Government clears Rs30.8bn NHDP projects. (ET)
FDI inflows hit a 15 month low of US$1bn. (ET)
Government has cleared a new formula for MSP of agricultural commodities. (FE)
Commerce ministry is planning to relax norms governing special economic zones (SEZs). (BS)
Pilot your Portfolio
Safety is not a gadget but a state of mind.
Imagine. A US Airways plane crash lands into the Hudson River and most of them on board survive. Similarly, US stocks too rebounded remarkably, on news that Bank of America will get a new lifeline from the government. A measure to block the release of the second part of the stimulus plan was dismissed in the Senate, giving the incoming Obama regime the final $350bn of TARP funds. The twin bit of good news put short sellers on the defensive, leading to a sharp snap-back in the afternoon session.
Coming to the Indian market, most participants have been crash landing since the start of 2008 and have found to their dismay that there is no pilot to take charge. In turbulent times, one has to be one’s own saviour and hope for some luck. What one also needs is a bit of a pluck.
Today, we see the market opening higher after Thursday’s setback. The bulls may be able to hold on to the gains if global markets are supportive, and there is no fresh bad news from any quarter. One caveat though, one should avoid any flights of fantasy given the uncertain scenario.
Key Results Today: Alphageo, Bajaj Holding, Bajaj Auto, Federal Bank, Hindustan Construction, Jet Airways, JP Hydro, MMTC and Zensar Technologies.
FIIs were net sellers in the cash segment on Thursday at Rs4.84bn (provisional) while the local institutions pumped in Rs1.75bn. In the F&O segment, the foreign funds were net sellers at Rs8.07bn. On Wednesday, they were net buyers of Rs748mn while Mutual Funds were net sellers of Rs1.46bn.
US stocks posted modest gains on Thursday, thanks largely to a late rally that was sparked off by news of Bank of America getting up to $200bn from the government and the president-elect Obama getting the second part of the stimulus announced by his predecessor.
Stocks tumbled through most of the session on worries about the banking sector's financial health, the future of Apple, and the depth of the recession. But stocks snapped back in the afternoon after more information circulated about the government's economic stimulus plan and reports that Bank of America may get a government-backed guarantee related to its purchase of Merrill Lynch.
Investors also reacted to the latest details about the proposed economic stimulus plan. House Democrats are pitching an $825bn bill that is roughly $550bn in spending and $275bn in tax cuts. The measure is likely the most expensive spending plan Congress has ever proposed.
After the close, a Senate measure to block the release of the second half of the bailout failed, giving the Treasury and Obama access to the remaining $350bn.
Fear of a prolonged recession has taken its toll on US stocks in the new year. As of Thursday's close, the S&P 500 is down almost 7% year-to-date.
For the week ended Jan. 14, investors pulled $13.3bn out of stock funds, according to investment-research firm Trim Tabs. In the previous week, investors poured $6.4bn into funds.
JPMorgan Chase reported a surprise quarterly profit. But income was down 76% from a year ago, and the company's CEO, Jamie Dimon, warned that the economy and financial sector will continue to weaken. Shares fell 6% after spending time on both sides of breakeven through the session.
Bank of America tumbled 18.4% on reports that the company is seeking billions more in federal funds to help it complete the purchase of Merrill Lynch. Shares had been down more than 26% in the morning, before the broad market turned around.
Citigroup shares slipped 15.5% one day before the company is expected to report another massive quarterly loss and announce restructuring moves. Earlier, Citi had been down as much as 25%.
On Wednesday, Citi said it is selling a majority stake in its brokerage unit to Morgan Stanley, a move that would seem to indicate the beginning of the break-up of the troubled banking firm.
Apple CEO Steve Jobs said late on Wednesday that he is taking a medical leave through the end of the second quarter because his health-related issues are more complex than he thought. Shares closed down 2.3%, erasing bigger losses.
In other news, Motorola said late on Wednesday that it will slash 4,000 jobs on top of the 3,000 cuts it announced in late 2008. Shares gained 7%.
In the day's economic reports, both the New York Empire State index and the Philadelphia Fed index fell more than expected, showing the deepening recession. The number of people filing for first-time unemployment benefits rose more than expected last week, pushing the number to 524,000.
The Producer Price Index (PPI), a measure of wholesale inflation, fell 1.9% last month, as expected. PPI fell 2.2% in November. The so-called core PPI, which strips out volatile food and energy prices, rose 0.2% after rising 0.1% in the previous month. Economists thought it would rise 0.1%.
Treasury prices slipped, raising the yield on the benchmark 10-year note to 2.21% from 2.20% on Wednesday. Treasury prices and yields move in opposite directions. Yields on the 2-year, 10-year and 30-year Treasurys all hit record lows last month.
Lending rates tightened. The 3-month Libor rate rose to 1.09% from 1.08% Wednesday, a five-year low, according to the British Banker's Association. Overnight Libor rose to 0.12% from 0.10% on Wednesday, a record low.
US light crude oil for February delivery fell $1.88 to settle at $35.40 a barrel on the New York Mercantile Exchange. COMEX gold for February delivery fell $13.40 to settle at $807.30 an ounce.
The dollar fell versus the euro and gained against the yen. Gasoline prices rose seven-tenths of a cent to a national average of $1.799 a gallon.
After the close, Intel reported a 90% drop in fourth-quarter earnings that nonetheless met forecasts. Shares gained modestly in extended-hours trading.
Also, Bank of America said that it will report fourth quarter and full-year 2008 earnings Friday morning.
European shares fell for the seventh session in a row on Thursday, as economic troubles pressured banks once more and prompted the European Central Bank (ECB) to slash interest rates.
The pan-European Dow Jones Stoxx 600 index fell 0.9% to 191.17 in a choppy session, with banks the worst performers once more. The ECB lowered its key interest rate by 50 basis points to 2.0%, matching an all-time low.
Germany's DAX 30 index fell 1.9% to 4,336.73, while the French CAC-40 index declined 1.8% to 2,995.88 while the UK's FTSE 100 index closed down 1.4% at 4,121.11.
Bulls were unable to carry the previous day’s momentum as weak global cues and profit booking at higher levels dragged the BSE benchmark Sensex below the 9,000 mark in intra-day trades.
Selling was witnessed all over the bourses with banking, realty and metal stocks among the major losers. Also the second rung stocks were under pressure. However despite all the odds the BSE benchmark Sensex managed to end the day above the 9,000 level.
The BSE benchmark Sensex ended at 9,046 plunging 323 points and the NSE Nifty index losing 98 points to close at 2,736.
Shares of Sasken Communication plummeted by over 19% after reports stated that the company may lose orders because of the bankruptcy filed by Nortel Networks Corp. The scrip touched an intra-day high of Rs49.9 and a low of Rs43 and recorded volumes of over 11,00,000 shares on BSE.
Shares of Satyam plunged by over 30% on Thursday to end at Rs20 per share after the government announced that it was not considering bailing out the company.
Shares of Infosys fell over 4% to end at Rs1252. The company announced that it does not see any impact on its finances after one of its clients Nortel Networks filed for bankruptcy. The company also clarified that Nortel's contribution to Infosys revenues was less than half a percent of our yearly revenues.
Shares of Wipro were also down by 3% to Rs235. The company came out and clarified saying that Nortel one of its clients accounts for less than 1.5% of the IT business revenue.
Maytas Infra continued its downward journey; the stock was locked at 5% lower circuit to Rs123.15. According to reports, the company is in talks with two other organizations to sell stakes in projects it can’t afford to complete
The company controlled by the family of Ramalinga Raju, the former chairman of Satyam Computer needs around Rs13bn in working capital and is stated to be in negotiation with Nagarjuna Construction and Ramky Infrastructure to sell the stakes, added reports. The scrip touched an intra-day high of Rs123.15 and a low of Rs123.15 and recorded volumes of over 1,000 shares on BSE.
Balrampur Chini Mills
We recommend a buy in Balrampur Chini Mills from a short-term perspective. The stock has been in a strong short-term uptrend from December 2, 2008 when it formed the low at Rs 29.7. It gained more than 80 per cent from this trough and is currently in a corrective down trend.
After correcting about 50 per cent of the prior up-move, a fresh up-move appears to be unfolding currently. This leg of the up-move is likely to take the stock beyond its recent peak. The short-term trend line at Rs 45 should act as a reliable support in declines.
The 14-day relative strength index (RSI) is bouncing off the 50 level implying that the short-term up trend can continue further. Buy signals in the weekly oscillators too denote strength in the stock. Short-term traders can buy the stock with a stop at Rs 48. The stock can move to Rs 55 in the immediate future.
via BL
Do you support Raju ?
Contemplating his fate from a prison cell, his reputation shattered, Ramalinga Raju, the founder of India's Satyam Computer Services,
Across Hyderabad, home to Satyam, prayers are being said for Raju, the man who plunged the firm into crisis by revealing a fraud which is India's biggest corporate
scandal.
"He was good at computers, bad at construction. He was not able to manage finance properly. You can't be good at everything," argued one Raju supporter, a college lecturer who asked not to be named.
Outside the jail where Raju is being held pending charges, supporters drop by to ask about him even as a probe into the fraud widens.
"Dear Sri Ramalinga Raju. We are with you. Please don't loose (sic) confidence. Wishing you a happy pongal," read one poster outside the city's Chanchalguda jail on Wednesday.
A big pink rose was left by someone named "Nagaraj".
Pongal, a Hindu harvest festival, was celebrated in south India on Wednesday.
Satyam, which means truth in Sanskrit, has been battling for survival since Raju resigned as chairman last week, saying profits had been falsified for years and $1 billion of cash and bank balances did not exist.
The revelations have cast a pall over India's much-cherished software sector and had commentators lamenting a shameful lapse in corporate governance by one of the industry's favoured sons.
The fate of Satyam's 53,000 employees hangs in the balance, with statements from government officials on Thursday that there were no plans for a bailout adding to the gloom.
"But look at the way he built Satyam, created jobs. I don't think he has done anything wrong," the lecturer said, adding he had debated the matter with his wife and decided to use the holiday to show his support for Raju.
NO COCKFIGHTS, GAMBLING
A crowd of reporters and curious onlookers gathers outside the jail everyday for updates on its famous inmate, with guards sometimes bringing bits of news, including the celebration of Pongal with 'laddoos', a ball-shaped sweet.
"We sent him some," said Krishnamurthy, a guard.
But in Raju's ancestral village Garagaparru, about 400 km from Hyderabad, there were few festivities, with the traditional cockfight and card games nowhere to be seen, reported the Hindustan Times paper.
Instead, villagers printed large posters of support featuring pictures of Raju and his brother, Satyam's managing director, who has also been arrested over the fraud, the paper said.
Others in Hyderabad were less forgiving.
"He was like god," said Vijay Kumar, who runs a travel agency in the city. "He was the face of Andhra Pradesh. But after all this, he has lost that."
via ET
Dull day for precious metals
Strong dollar and sliding crude price impact prices
Bullion metals ended substantially lower for fourth straight day on Thursday, 15 January, 2009 as the dollar strengthened and also due to the weak crude oil price and sliding US stocks. 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 Thursday, Comex Gold for February delivery fell $1.5 (0.2%) to close at $807.3 an ounce on the New York Mercantile Exchange. Earlier, prices fell to a low of $801.5 and also rose to a high of $822.1. Last week, gold prices ended down by 2.8%. This year gold has lost 9.3% till date. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (21%) since then.
On Thursday, Comex silver futures for March delivery fell by 3.5 cents (0.3%) to $10.44 an ounce. Last week, silver has gained 13 cents. For 2008, silver had lost 24%.
At the currency market on Thursday, 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%. The dolar index gained 0.6% today.
In the crude market on Thursday, crude-oil futures fell after slew of weak economic reports that hit the wires today. Crude prices ended lower by 10% below $34/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 65 (0.5%) at Rs 12,787 per 10 grams. Prices rose to a high of Rs 12,925 per 10 grams and fell to a low of Rs 12,731 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed Rs 111 (0.63%) lower at Rs 17,484/Kg. Prices opened at Rs 17,598/kg and fell to a low of Rs 17,392/Kg during the day's trading.
Crude plunges
Demand concerns take crude to one month low
Crude oil prices once again dropped on Thursday, 15 January, 2009. Prices fell due to the weak set of economic reports that hit the wires today. The reports indicated that energy demand might go down in the coming months. Prices also continued to fall after yesterday's weekly inventory report that was reported by the Energy Department.
On Thursday, crude-oil futures for light sweet crude for February delivery closed at $35.4/barrel (lower by $1.88 or 5%) on the New York Mercantile Exchange. 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 21%.
In its monthly report, OPEC announced today that oil consumption will drop for the second consecutive year in 2009. As per the report, oil consumption is expected to fall 200,000 barrels a day this year. Consumption declined 100,000 last year, the first year of negative growth since 1983, the cartel, which controls about a third of the world's oil production.
Yesterday, the Energy Information Administration had reported that at 326.6 million barrels, U.S. crude inventories reached their highest level since August 2007. Total products supplied in the U.S., including gasoline and heating oil, averaged 19.7 million barrels a day over the past four weeks, down 4% compared with the same period last year. U.S. refineries operated at 85.2% of their operable capacity last week, up from the previous week's 84.6%.
The report also detailed that gasoline inventories rose 2.1 million barrels and crude-oil stockpiles gained 1.2 million barrels last week. Distillate fuel inventories, including heating oil and diesel, jumped 6.4 million barrels in the week ended 9 January, 2009.
Earlier this week, in the monthly report, the Energy Information Administration said that global oil consumption is projected to fall by 800,000 barrels per day in 2009. That's 400,000 barrels more than the previous month's forecast. Half of the consumption reduction in 2009 will come from the U.S., the world's largest oil consumer,
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.
Saudi Oil Minister Ali al-Naimi said this week that February production will be “lower than the target” set at a 17 December, 2008 OPEC meeting. The country is currently producing 8 million barrels a day, about level with its 8.051 million-barrel-a-day allocation. Prior to this, oil ministers from the Organization of Petroleum Exporting Countries agreed in Oran, Algeria, to cut supply by 9% w.e.f 1 January, 2009 to 24.845 million barrels a day.
Against this background, February reformulated gasoline ended almost flat at $1.1742 a gallon and February heating oil rose 1.6% to $1.4871 a gallon
February natural-gas futures fell 2.6% to $4.843 per million British thermal units. EIA reported today that U.S. natural-gas inventories fell 94 billion cubic feet in the week ended 9 January, 2009.
At the MCX, crude oil for February delivery closed at Rs 2,059/barrel, lower by Rs 83 (3.9%) against previous day's close. Natural gas for January delivery closed at Rs 235.7/mmbtu, lower by Rs 11/mmbtu (4.5%).
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