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Tuesday, January 20, 2009
Sensex cools, drops 229 points
The market took a sharp dip in the early trades and continued to move down. The Sensex began the trading session with a negative gap of 170 points at 9160 and exhibited weakness through the day. The selling pressure in front-line stocks kept the metal and reality stocks in the red that dragged down the index to an intra-day low of 9034. The Sensex pared some losses on selective buying in power and PSU stocks and ended the session with losses of 229 points at 9101. The Nifty was 50 points down and closed at 2797.
The breadth of the market was negative. Of the 2,455 stocks traded on the BSE, 1,342 stocks declined, 1,018 stocks advanced and 95 stocks ended unchanged. Among the sectoral indices the BSE Metal Index shed 3.76% followed by the BSE Reality Index (down 3.31%) and the BSE Bankex (down 3.11%). On the other hand, the BSE Power Index was up 1.44%.
Among the Sensex stocks, Tata Steel tumbled 6.22% at Rs195.25, Bharti Airtel plunged 5.40% at Rs612, Reliance Communication slumped 4.76% at Rs176.15, JP Associate dropped 4.41% at Rs66.15, ICICI Bank shed 4.10% at Rs396.10, Reliance Communication lost 3.88% at Rs1182, Sterlite Industries was down 3.75% at Rs260.50 and Hindalco declined 3.65% at Rs48.90. The other front-line stocks lost around 1-3% each. However, NTPC was marginally up at Rs185.70, Reliance Infra gained 3.16% at Rs552 and Tata Power was up at Rs769.95.
Over 4.59 crore Satyam shares changed hands on the BSE followed by Cals Refinery (2.71 crore shares), Unitech (2.47 crore shares), GVK Power (1.15 crore shares) and Suzlon (98.36 lakh shares).
BSE Bulk Deals to Watch - Jan 20 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
20/1/2009 526556 AVERY INDIA PAT FINANCIAL CONSULTANTS B 111430 80.67
20/1/2009 526556 AVERY INDIA MINAL B. PATEL S 75131 80.90
20/1/2009 526785 CREST ANIM V. SHANKAR VENKATRAMAN B 114438 22.00
20/1/2009 526285 DIVYAJYO IND JAGDISH CHANDRA NYATI B 123000 6.80
20/1/2009 526285 DIVYAJYO IND BRIJMOHAN RATHI S 140000 6.80
20/1/2009 531913 GOPAL IRON CHANDRA SHEKHAR SUNIL BHATT S 100000 3.60
20/1/2009 530255 KAY POW PAP PARKASH CHAND GUPTA S 64750 6.76
20/1/2009 531602 KOFF BR PICT APURVA GIRISHBHAI RAMOLIA B 300000 2.67
20/1/2009 531602 KOFF BR PICT VIPUL VIRENDRAKUMAR PATEL S 262010 2.70
20/1/2009 590077 RANKLIN SOLU PURE VALVE INVESTMENTS PVT LTD B 50000 23.15
20/1/2009 590077 RANKLIN SOLU SATISH YECHAREDDY B 75000 22.70
20/1/2009 590077 RANKLIN SOLU PABBATHI SRINIVASA RAO S 50000 22.40
20/1/2009 590077 RANKLIN SOLU VENKATA RAGHAVANAGAR ANJANEYA S 50000 22.40
20/1/2009 590077 RANKLIN SOLU PROMPT CORPORATE SERVICES LIMITED S 93569 22.43
20/1/2009 507649 RASOI LTD TRINCAS AGENCIES AND COMMERCE B 10000 342.15
20/1/2009 507649 RASOI LTD TEJASWI VINIMAY PVT LTD B 10000 342.30
20/1/2009 531898 SANGUINE MD SUKUSAMA TRADING AND INVESTMENTS PVT LTD S 300069 6.93
20/1/2009 531898 SANGUINE MD KHAITAN WEAVING MILLS LTD S 135036 6.82
20/1/2009 501756 THANA ELE SU NIKESH B MEHTA B 10000 12.00
NSE Bulk Deals to Watch - Jan 20 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
20-JAN-2009,CRESTANI,Crest Animation Studios L,V. SHANKAR VENKATARAMAN,BUY,116696,22.00,-
20-JAN-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,101898,1964.15,-
20-JAN-2009,EDUCOMP,Educomp Solutions Limited,MARWADI SHARES AND FINANCE LIMITED,BUY,91184,1969.62,-
20-JAN-2009,EVINIX,Evinix Accessories Limite,RAKESH GUPTA,BUY,985000,2.59,-
20-JAN-2009,SARLAPOLY,Sarla Performance Fibers,MADHUSUDAN SHIVCHANDRAI JHUNJ,BUY,45000,30.00,-
20-JAN-2009,SATYAMCOMP,Satyam Computers Ltd,ADROIT FINANCIAL SERVICES PVT LTD,BUY,4859463,25.95,-
20-JAN-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,101898,1964.82,-
20-JAN-2009,EDUCOMP,Educomp Solutions Limited,MARWADI SHARES AND FINANCE LIMITED,SELL,91184,1970.08,-
20-JAN-2009,EVINIX,Evinix Accessories Limite,SUPREME FINVEST (P) LTD.,SELL,1000000,2.59,-
20-JAN-2009,SATYAMCOMP,Satyam Computers Ltd,ADROIT FINANCIAL SERVICES PVT LTD,SELL,4856263,26.06,-
Post Session Commentary - Jan 20 2009
The Indian market ended lower tracking negative cues from the Asian markets. Investors were spooked by the fears that the global financial sector crisis would trigger more foreign fund outflows that pulled the market lower. Concern about global banking sector revived on record loses at British bank. Crisis-stricken Royal Bank of Scotland took spanking new help from the government and announced that its losses for last year could reach $41.3 billion, the biggest ever for a British corporation.
The domestic market today opened on a weak note on fears of global financial crises that may deepen the world''s economic downturn. Foreign funds started fresh selling after Royal Bank of Scotland posted the largest loss in the UK’s banking history. The market also kept an eye on the Barrack Obama’s swearing in as the new President of the United States of America later Tuesday, which could probably provide some positive sentiment to global equities. Further, benchmark indices tried to recover on recovery in US index futures. Market extended its losses and slipped sharply again as US index futures were not able to hold their earlier gains. Negative sentiments continued to knock the market till end. From the sectoral front, the majority of indices ended in red. Most of the selling was seen in Metal, Reality, Bank, Oil & Gas, Auto and Teck stocks. Midcap and Smallcap stocks also followed the same trend. However, Power and PSU stocks were in limelight as were able to gain market favor.
Among the Sensex pack 27 stocks ended in red territory and 3 in green. The market breadth remained negative as 1342 stocks closed in red while 1018 stocks closed in green and 95 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 229.02 points at 9,100.55 and NSE Nifty ended down by 49.60 points at 2,796.60. The BSE Mid Caps and Small Caps ended with losses of 27.52 points and 12.37 points at 3,016.01 and 3,439.09 respectively. The BSE Sensex touched intraday high of 9,159.76 and intraday low of 9,033.55.
Losers from the BSE Sensex pack are Tata Steel (6.34%), Bharti Airtel (4.88%), Sterlite Industries (4.75%), RCom (4.65%), JP Associates (4.12%), HDFC (4.09%), Hindalco (4.04%), Reliance (3.84%), ICICI Bank (3.81%), ACC Ltd (3.37%), Maruti Suzuki (3.34%) and SBI (3.06%).
Gainers from the BSE Sensex pack are NTPC Ltd (4.27%), Reliance Infra (3.16%) and Tata Power (1.04%).
On the global markets front, the Asian Markets tumbled on Tuesday on worries for European banks as Royal Bank of Scotland''s massive loss renewed jitters about the health of global banks amid a protracted economic slump. Along with this, every one is waiting for Obama’s inauguration speech when he will take power as the 44th U.S. president. Hang Seng index closed lower by 380.22 points at 12,959.77. Along with this, Nikkei, Straits Times and Seoul Composite index ended down by 191.06, 23.62 and 23.84 points at 8,065.79, 1,723.37 and 1,126.81 respectively.
The European Markets are trading firm following a sell-off the day before. Though, U.K. price inflation fell sharply in December to 3.1% as against 4.1% November and investors were worried that the British government''s plans for a second financial sector bailout in three months could lead to the full nationalization of one or more banks. The DAX is up by 62.53 points at 4,378.67 and FTSE 100 is higher 68.24 points at 4,176.71.
The BSE Metal stocks tumbled on fall in metal prices on the London Metal Exchange and ended lower by (3.76%) or 191.25 points at 4,896.79. Main losers are Tata Steel (6.34%), Welspan Gujarat Sr (5.96%), Sterlite Industries (4.75%), Steel Authority (4.72%), Sesa Goa Ltd (4.45%) and Hindalco (4.04%).
The BSE Reality index also followed the southward direction as ended down by (3.31%) or 58.31 points at 1,702.77. Major losers are Ansal Infra (6.00%), Housing Development (5.70%), Indiabull Real (4.90%), Unitech Ltd (4.39%), Orbit Co (2.94%) and Pheonix Mill (2.89%).
The BSE Bank index tumbled (3.11%) or 155.31 points to close at 4,833.11 on weak sentiment for bank shares globally led by record losses reported by British bank Royal Bank of Scotland. Oriental Bank (4.73%), ICICI Bank (3.81%), Union Bank (3.70%), Axis Bank (3.64%) and Yes Bank (3.38%) ended in negative territory.
The BSE Oil & Gas index also remained out of favour as crude oil prices fell overnight and ended lower by (2.60%) or 156.81 points at 5,863.59. Losers are Reliance (3.84%), Gail India (2.87%), Reliance Natural Resources (2.70%), Cairn Ind (2.52%), Essar Oil Ltd (2.34%) and Reliance Pet (1.85%).
The BSE Auto index fell as high interest rates and sluggish consumer spending have dented demand for automobiles in India. It closed with decrease of (2.59%) or 65.97 points at 2,476.47. Scrips that lost are Bajaj Auto (7.76%), Exide Indus (4.89%), Cummins Indi (3.50%), Maruti Suzuki (3.34%), M&M Ltd (2.99%) and Tata Motors (2.96%).
The BSE Power index witnessed most of the buying as ended up by (1.44%) or 25.52 points to close at 1,803.09 as Neyveli LIG (13.27%), Power Grid (10.73%), Torrent Power (6.12%), NTPC Ltd (4.27%), Reliance Infra (3.16%) and GVK Power (2.98%) ended in green.
RIL, bank shares lead 2.5% Sensex fall
Fears that the global financial sector crisis would trigger more foreign fund outflows pulled the market lower in choppy trade. Record loses at British bank Royal Bank of Scotland helped revive concerns about the global banking sector. The BSE 30-share Sensex was down 229.02 points, or 2.45%. The market was in the red throughout the day today, 20 January 2009.
Volatility in US index futures caused volatility on the domestic bourses. US index futures though in the red witnessed recovery from lower level at least twice during trading hours in India.
The Indian market opened on a weak note on concerns that increasing woes in the global financial sector will deepen the world's economic downturn. It cut losses in early afternoon trade on recovery in US index futures and recovery in some Asian stocks. The intraday recovery proved short-lived and the market weakened in afternoon trade as US index futures tumbled again.
Gains in European shares and recovery in US index futures from lower level triggered recovery on the domestic bourses in mid-afternoon trade. A sharp slide was witnessed at about 15:00 IST. The market cut losses at the fag end of the trading session.
The market sentiment was edgy due to selling by foreign funds. Foreign funds have sold shares worth a net Rs 2644.40 crore this month, till 19 January 2009.
European stocks fell after early gains on weakness in commodity stocks. Key benchmark indices in France, Germany and UK were down by between 0.04% to 0.93%.
Some Asian stocks cut losses triggered by record losses at British bank Royal Bank of Scotland. In China, the Shanghai Composite Index moved into green from red. It was now up 0.37%. Hong Kong's Hang Seng was down 2.85%, recovering from a more than 3% slide earlier. Key benchmark indices in Japan, South Korea, Singapore, Taiwan were down by between 1.35% to 2.85%.
Record loses at British bank Royal Bank of Scotland helped revive concerns about the global banking sector. Royal Bank of Scotland on Monday, 19 January 2009, unveiled the biggest loss in UK corporate history. On the same day, the UK government launched a second bank rescue plan. The plan, however, failed to restore confidence in the wobbly financial sector. Royal Bank of Scotland said on Monday it was on course to report a 2008 loss of up to 28 billion pounds ($40.45 billion), leading the UK government to increase its stake in the lender to nearly 70%.
Trading in US index futures indicated that the Dow could fall 82 points at the opening bell on Tuesday. Barack Obama will be sworn in as the new US president later in the day, and his administration is expected to quickly roll out a hefty stimulus package and a revived plan to buy bad bank assets. US markets were closed on Monday for the Martin Luther King, Jr. Day holiday.
Governments worldwide are grappling with how to get their banks lending again to revive economies, despite already injecting billions of dollars and implementing other measures such as backing some of their debt. Central banks have also cut interest rates sharply in a bid to spark growth, but even that has failed to comfort investors.
The BSE 30-share Sensex was down 229.02 points, or 2.45%, to 9,100.55. The Sensex fell 169.81 points at day's high of 9,159.76 in early trade. The Sensex lost 296.02 points at the day's low of 9,033.55 in mid-morning trade.
The S&P CNX Nifty fell 49.60 points, or 1.74%, to 2,796.60.
The market breadth, indicating the overall health of the market, was weak on BSE with 1,044 shares advancing as compared with 1,371 that declined. 61 shares remained unchanged.
The BSE clocked a turnover of Rs 2,748 crore today higher than Rs 2,612.82 crore on Monday, 19 January 2009.
Nifty January 2009 futures were at 2769.45, at a discount of 27.15 points as compared to the spot closing of 2796.60. Turnover in NSE's futures & options (F&O) segment surged to Rs 35,511.58 crore from Rs 26,461.81 crore on Monday, 19 January 2009.
The BSE Metal index (down 3.76%), the BSE Realty index (down 3.31%), the BSE Bankex (down 3.11%), the BSE Oil & Gas index (down 2.6%), the BSE Auto index (down 2.58%), the BSE Teck index (down 2.47%), underperformed the Sensex.
The BSE Power index (up 1.44%), the BSE PSU index (up 0.33%), the BSE FMCG index (down 0.64%), the BSE HealthCare index (down 0.94%), the BSE IT index (down 1.04%), the BSE Consumer Durables index (down 1.28%), the BSE Capital Goods index (down 1.99%) outperformed the Sensex.
The BSE Sensex has lost 546.76 points or 5.66% 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
From the 30 stocks from the Sensex pack, 27 stocks rose while rest fell. Bharti Airtel, Jaiprakash Associates, ACC, HDFC, Reliance Communications fell by between 3.37% to 4.86%.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) fell 3.84% after Anil Dhirubai Ambani group (ADAG) firm Reliance Natural Resources (RNRL) on Monday, 19 January 2009, asked the Bombay High Court (HC) not to lift the stay on the sale of gas from Reliance Industries (RIL)'s block in the Krishna-Godavari basin.
In May 2007, the Bombay HC in an interim order had asked RIL not to create third-party interest for 40 mscmd (million standard cubic metres per day) of gas from the KG basin committed to NTPC and RNRL under their respective agreements with RIL. Both the companies are seeking gas from RIL at $2.34 per mBtu and fighting a legal battle with RIL at the Bombay HC. The government approved price for the gas is $4.20 per mbtu.
Profit taking also weighted on the RIL counter after the stock gained 7.54% in last two days to Rs 1,229.65 on Monday,19 January 2009 from Rs 1,143.35 on Thursday, 15 January 2009 after the company during trading hours on 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.
India's largest oil exploration firm by revenue ONGC fell 1.12% as crude oil prices fell. But lower oil prices boosted PSU OMCs. HPCL, BPCL and Indian Oil Corporation rose by between 1.15% to 2.48%. Lower oil prices will reduce losses of the state-run oil firms on domestic sale of LPG and kerosene at a controlled price. The oil marketing firms are making profit on sale of petrol and diesel thanks to a sharp slide in oil prices from a record high of $147 a barrel struck in July 2008.
Oil fell about $3 a barrel as more gloomy economic news emerged and gas supplies resumed from Russia.
Mangalore Refinery and Petrochemicals fell 4.68% after it posted a net loss of Rs 285.41 crore in Q3 December 2008 compared to a net profit of Rs 346.6 crore in Q3 December 2007.
Some healthcare stocks rose on defensive buying. Aventis Pharma, Lupin, Dr Reddy's Laboratories, Fortis Healthare rose by between 0.63% to 3.26%.
Power stocks gained in late trade after the Central Electricity Regulatory Commission (CERC) raised the return on equity for power units to 15.5% from existing 14%. Power Grid Corporation of India, Torrent Power, NTPC, CESC, Reliance Power, Tata Power Company, Reliance Infrastructure rose by between 0.84% to 10.73%.
The CERC said that the new RoE would be applicable for the period from 2009 to 2014. The RoE for projects completed on schedule is at 16%, a CERC statement said.
Rate sensitive realty stocks fell on reports falling interest rates have failed to revive housing demand. DLF, Unitech and Indiabulls Real Estate fell by between 2.95% to 4.9%.
Metal stocks declined on fall in metal prices on the London Metal Exchange. Hindalco Industries, Steel Authority of India, National Aluminum Company, Sterlite Industries fell by between 1.47% to 4.75%.
India's largest steel maker by sales Tata Steel tumbled 6.34% after its Thailand-based unit reported its biggest quarterly loss since 2003.
Bank stocks fell on weak sentiment for bank shares globally as record losses reported by British bank Royal Bank of Scotland fueled concerns among investors that the industry crisis is deepening. India's largest bank in terms of assets and branch network State Bank of India fell 3.06%. India's second largest private sector bank by net profit HDFC Bank slipped 2.99%. India's largest private sector bank by net profit ICICI Bank fell 3.81%.
Outsourcing focussed IT firms fell as fears a weak global economy would cut the amount firms spent on technology. India's third largest software services exporter, Wipro fell 1.75%. The company will announce its Q3 December 2008 earnings on Wednesday, 21 January 2009.
India's second largest software services exporter Infosys Technologies fell 0.81%. India's fifth largest IT exporter by sales HCL Technologies fell 3.93%.
TCS, India's largest software services exporter by sales fell 0.92% to Rs 496.10 even as the company said it had signed a multi-million dollar, multi-year deal with Ducati Motor Holding to deliver technology-based services to the Italian bikemaker and its subsidiaries in Europe. TCS had reported a lower-than-expected rise in net profit in Q3 December 2008 with the management cautioning about the tough business environment at the time of declaring results after market hours on Thursday, 15 January 2008.
India's fourth largest software services exporter Satyam Computer Services rose 5.5% to Rs 26.85 off the day's low of Rs 23.05. A US-based client had reportedly canceled its contract, and after the Indian government widened its probe to two firms linked to Satyam viz. Maytas Properties and Maytas Infra, the two firms Satyam tried to take over in mid-December 2008 before hastily backing down in the face of a shareholder revolt. Satyam's ex CEO Ramalinga Raju had resigned on 7 January 2009 after admission of accounting fraud in the company.
IT pivotals fell despite a weaker rupee. The rupee weakened on Tuesday following weak Asian stock markets and the dollar's rise against some regional currencies. The partially convertible rupee was at 49.17 per dollar, below Monday's close of 48.65. A weaker rupee improves operating margin of IT firms as they earn most of their revenues from exports.
Auto stocks fell as high interest rates and sluggish consumer spending have dented demand for automobiles in India. Mahindra & Mahindra, Tata Motors and Maruti Suzuki India fell by between 2.96% to 3.34%. India's largest motorbike maker by sales Hero Honda Motors fell 0.42%.
India's largest FMCG major by sales Hindustan Unilever fell 2.84% on reports the company has cut prices of key soaps and detergent brands to pass on to consumers the excise duty reduction announced a month ago.
Satyam Computer Services clocked the highest volume of 4.6 crore shares on BSE. Cals Refineries (2.71 crore shares), Unitech (2.47 crore shares), GVK Power & Infrastructure (1.01 crore shares) and Suzlon Energy (98.48 lakh shares) are the other volume toppers in that order.
Educomp Solutions clocked the highest turnover of Rs 198.69 crore on BSE. Reliance Industries (Rs 185.93 crore),Reliance Infrastructure (Rs 152.1 crore), Reliance Capital (Rs 150.74 crore) and Satyam Computer Services (Rs 120.19 crore) were the other turnover toppers in that order.
Pre Session Commentary - Jan 20 2009
Today the markets are likely to open negative as the Asian markets have opened with heavy blood bath. Yesterday’s trade exuded the sense of cautiousness and fear which is likely to haunt in today’s trade as well. The EU commission has forecasted that the GDP growth rate for UK would be at -2.8% during 2009 from -1.0% earlier. Further it also forecasts that the US economy would contract by 1.6% this year. The intensity of bearishness would be harsh today as the European markets closed in red yesterday and today the Asian markets are trapped in the tight claw of bears. There is no special news in the markets that would support the buying sentiments and hence one could anticipate severe selling pressure across broader markets.
On Monday, the markets closed flat after a volatile session. The sentiments were not that strong throughout the day’s session to keep the markets above the base line. The volumes of trade in NSE as well as BSE were also far below the average level exuding sings of reluctance and interest. The European markets further jolted the domestic sentiments as after the announcement of a stimulus package worth 200 billion pounds from the UK government, the European markets trade red. However, the major Asian markets managed to close in green after a nervous trading. There was no special news in the domestic arena that could have spurred the domestic sentiments. Sectors like Realty, Metal, Oil & Gas and CG closed with gains of 2.17%, 1.85%, 1.46% and 1.32% respectively. On the other hand Bankex, IT and Auto shed 0.97%, 0.75% and 0.38% respectively. Sensex and Nifty gained 0.06% and 0.63% respectively. Mid caps and Small caps gained by 0.55% and 1.13% respectively. During the session we expect the markets to be trading in deep red.
The BSE Sensex closed higher by 5.98 points at 9,323.59 and NSE Nifty gained by 17.75 points at 2,846.20. The BSE Mid Caps and Small Caps ended with gains of 16.70 points and 38.69 points at 3,043.53 and 3,451.46 respectively. The BSE Sensex touched intraday high of 9,409.51 and intraday low of 9,273.47.
Markets in the US were closed on Monday for Martin Luther King Jr. Day.
Today major stock markets in Asia have opened with heavy losses. The Shanghai Composite is trading low by 27.05 points at 1,959.62 while Hang Seng is low by 463.31 points at 12,876.68. Further Japan''s Nikkei is trading low by 226.81 points at 8,030.04. South Korea’s Seoul Composite is low by 28.73 points at 1,121.92 and Singapore’s Strait Times is also low by 40.36 points at 1,706.63.
The FIIs on Monday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 835.30 Crore and gross debt purchased stood at Rs 772.50 Crore, while the gross equity sold stood at Rs 1398.50 Crore and gross debt sold stood at Rs 322.90 Crore. Therefore, the net investment of equity and debt reported were Rs (563.20) Crore and Rs 449.60 Crore respectively.
On Monday, Indian Rupee closed at 48.70/71 per dollar, 0.2% stronger than Friday’s close of 48.78/80. The rupee shed off from its high at 48.50 on concerns of choppy share markets and weak expectations of foreign capital inflow.
On BSE, total number of shares traded were 32.28 Crore and total turnover stood at Rs 2,612.82 Crore. On NSE, total number of shares traded were 62.59 Crore and total turnover was Rs 6,818.92 Crore.
Top traded volumes on NSE Nifty – Unitech with 183768320 shares, Suzlon Energy with 27926330 shares, DLF with 11566589 shares, SAIL with total volume traded 10332457 shares followed by Reliance Petro with 8868290 shares.
On NSE Future and Options, total number of contracts traded in index futures was 592841 with a total turnover of Rs 7,803.48 Crore. Along with this total number of contracts traded in stock futures were 845310 with a total turnover of Rs 7,035.21 Crore. Total numbers of contracts for index options were 761579 with a total turnover of Rs 10,932.18 Crore and total numbers of contracts for stock options were 68621 and notional turnover was Rs 690.95 Crore.
Today, Nifty would have a support at 2,722 and resistance at 2,802 and BSE Sensex has support at 9,020 and resistance at 9,265.
Market to drift lower on weak Asian stocks
The market is likely to drift lower on weak Asian stocks with sentiment edgy due to renewed selling by foreign funds. There is no major Q3 results today, 20 January 2009.
Asian shares slumped on Tuesday, 20 January 2009, on concerns that increasing woes in the global financial sector will deepen the world's economic downturn, highlighting the difficulties confronting incoming US President Barack Obama. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore, Taiwan and China were down by between 1.36% to 3.48%.
The tumble came after Royal Bank of Scotland on Monday, 19 January 2009, unveiled the biggest loss in UK corporate history, and after Britain launched a second bank rescue plan that failed to restore confidence in the wobbly financial sector. Royal Bank of Scotland said on Monday it was on course to report a 2008 loss of up to 28 billion pounds ($40.45 billion), leading the UK government to increase its stake in the lender to nearly 70%.
Trading in US index futures indicated that the Dow could fall 110 points at the opening bell on Tuesday. Obama will be inaugurated as US president later in the day, and his administration is expected to quickly roll out a hefty stimulus package and a revived plan to buy bad bank assets. US markets were closed on Monday for the Martin Luther King, Jr. Day holiday.
Closer home, foreign institutional investors (FIIs) are in selling mode after strong inflows at the begging of the month. Their outflow for the current month reached Rs 2216.30 crore till 16 January 2009.
As per the provisional data released by the stock exchanges, foreign funds sold shares worth a net Rs 363.37 crore on Monday, 19 January 2009. Domestic funds bought shares worth a net Rs 275.97 crore.
The early batch of Q3 earnings has been a mixed bag. While Infosys reported a strong-than-expected Q3 result, TCS warned that the market conditions are tough. Bajaj Auto's Q3 report card though weak was much better than market expectations. But net profit growth at cigarette major ITC was subdued in the third quarter.
Commodities have been another big loser since the second half of last year, though US crude futures were steady at $34.39 on Tuesday, 20 January 2009. Oil prices fell nearly $2 in electronic trade on Monday after Russia and Ukraine signed a gas deal to end a dispute and 22 days of fighting in the Gaza Strip was halted with separately declared ceasefires by Israel and the Islamist group Hamas.
The rupee weakened on Tuesday following weak Asian stock markets and the dollar's rise against some regional currencies. At 9:01 IST, the partially convertible rupee was at 48.90/91 per dollar, below Monday's close of 48.65
Trading Calls - Jan 20 2009
Nifty (2846) Sup 2780 Res 2880
Sell HDFC (1546) SL 1565
Target 1510, 1505
Sell Pantaloon (172) Sl 176
Target 165, 163
Sell DLF (195) SL 199
Target 187, 185
Buy GAIL (213) SL 208
Target 220, 223
Buy Maruti (578) SL 572
Target 588, 592
Daily News Roundup - Jan 20 2009
Unitech reduces debt obligation up to March 2009 from Rs25bn to Rs6bn on account of repayment and rollover of loans. (ET)
Unitech gets shareholder approval to raise Rs50bn through the issue of securities. (FE)
Tata Communications to raise Rs2.5bn via bond issue. (ET)
Tata Communications acquires 30% more in South Africa’s Neotel, thereby becoming a controlling shareholder. (ET)
Kamal Nath, Commerce and Industry minister has said that the government has no bailout plan for troubled Satyam Computer. (ET)
Steel majors like SAIL, Tata, JSW and Essar may push for higher import tariff on steel. (ET)
The three discoveries made by Cairn India in 2005-06 in Rajasthan block gets government nod for commercial exploitation. (BL)
Minority shareholders of Zenotech Laboratories, a company in which Ranbaxy owns 46.8%, are up against Daiichi Sankyo for allegedly failing to buy additional shares at the price offered by the former promoters of Ranbaxy. (BS)
OBC cuts lending rate by 75 bps to 12.5%. (ET)
Kouton Retail said its promoters have pledged additional shares with a local lender to make up for a shortfall in the value of the collateral. (BS)
RNRL has asked the Bombay High Court not to lift the stay on the sale of gas from RIL block in the Krishna-Godavari basin. (BS)
Vedanta Alumina has cancelled Rs2.3bn contract with Maytas Infra for construction of a township in Jharsuguda on plea of slow progress of work. (BS)
According to E&Y, Satyam improperly used the valuation of Maytas Properties done by them. (BS)
Gujarat NRE Coke plans to invest Rs30bn in Gujarat over the next four to five years. (FE)
Wockhardt to raise Rs5bn through the issue of redeemable preference shares. (FE)
Kamal Nath, Commerce and Industry minister hints at rate cut and further fiscal measures. (FE)
The government may not allow real estate developers to own commercial projects such as malls in the same company that develops projects for which they have accepted foreign investment. (ET)
The government may this month decide on giving a 3-year drilling holiday or moratorium to firms such as ONGC and RIL. (ET)
Sebi is set to make mandatory for promoters to report to stock exchanges, if they pledge their shares to raise funds. (ET)
The State Level Single Window Clearance Authority (SLSWCA) has approved 2 thermal power projects with combined investment of Rs161bn. (BS)
Can a new Deal heal?
Happiness is not the absence of problems but the ability to deal with them.
Problems are aplenty and Barack Obama has his task cut out, as he takes charge as the 44th US President - the first African-American to do so - on Tuesday. He has promised change for the US, and a second ‘New Deal’ to lift the world’s largest economy out of the financial abyss. The immediate priority will be to push through his version of the economic stimulus (worth US$825bn). But, the trillion-dollar question is how effective will it be? Recent history suggests that the previous stimulus plans and a slew of other steps haven’t quite been able to deliver the desired results.
Talking of stimulus, the UK has launched another rescue plan for its banks. There is talk of Japan announcing a new one anytime soon. In India too, the Government seems to be contemplating some more measures to stem the rot. But, the market appears to be going nowhere. Traded volume and turnover were abysmal to say the least.
Today, we expect the market to weaken amid sharp falls across Asian markets. European stocks too turned lower after a strong opening amid concerns about banks. The undertone may remain jittery ahead of a few key results such as Reliance Industries, which will be announced on Thursday.
FIIs were net sellers in the cash segment on Monday at Rs3.63bn (provisional) while the local institutions pumped in Rs2.76bn. In the F&O segment, the foreign funds were net sellers at Rs4.56bn. On Friday, they were net sellers of Rs5.63bn while Mutual Funds were net buyers of Rs2.85bn.
Key Results Today: AIA Engineering, Alstom Projects, Dr. Reddy's, Fortis Healthcare, Gati, Hero Honda, Hikal, HT Media, ICI India, KS Oils, Kirloskar Bros., LIC Housing Finance, Mahindra Lifespaces, MRPL, Nagarjuna Fertilizers, NIIT, Polaris, Reliance Capital, Shyam Telecom, Stone India, Tata Coffee, UB and Wipro.
Markets in the US were closed on Monday for Martin Luther King Jr. Day. US shares closed higher on Friday. A deluge of what are expected to be mostly bad corporate results and fresh reports on the state of the housing market will keep US market on tenterhooks. Earnings at S&P 500 companies are now expected to have tumbled 20.2% in the fourth quarter of last year from the year-ago period, according to Thomson Financial.
Last week, the Dow Jones Industrial Average slumped 3.7%, while the broader S&P 500 index fell 4.7%, and the tech-heavy Nasdaq Composite index lost 2.7%.
Across the Atlantic, weakness in the banking space led a slump in European stock benchmarks on Monday, as investors feared that the latest moves to support the financial sector won't be enough to get banks lending again. The pan-European Dow Jones Stoxx 600 index fell 1.7% to 189.62.
The banking sector initially traded higher after the UK government moved to support the British financial sector and Barclays reassured on profit trends late on Friday, shares turned sharply lower as the session went on.
Royal Bank of Scotland (RBS) shares sank nearly 67% in London with investors stunned by news that the lender could be on track to produce the biggest annual loss in UK corporate history. RBS said it could report a loss of up to 28 billion pounds ($41.6 billion) for the year.
In tandem with the RBS announcement, the UK government said it will restructure its recent rescue package for the lender as part of a wider package of measures designed to help the financial sector.
The UK's FTSE 100 index closed down 0.9% at 4,108.47, while Germany's DAX 30 index declined 1.2% to 4,316.14 and the French CAC-40 index index fell 0.9% to 2,989.69.
Shares of other European banks also fell sharply. Lloyds Banking Group declined 33.9% on the first day of trading after the merger of Lloyds TSB and HBOS. Credit Suisse shares dropped 6.7% and HSBC shares fell 6.5%. Barclays, which had a bright start to the session, fell 10.2%. Deutsche Bank shares fell 10.6%. BNP Paribas shares dropped 5.7%.Societe Generale shares declined 10.3%.
Meanwhile, the Bank of Japan is likely to announce new measures on Tuesday to prop up the world's second-largest economy. The Japanese central bank's monthly policy meeting comes after the bank on Friday lowered its assessment for the nation for a second consecutive quarter following its finding that conditions in all nine of economic regions have worsened.
Asian stocks slumped on Tuesday, led by commodity producers and banks, after Royal Bank of Scotland's forecast of the biggest loss in UK corporate history heightened concern the global recession is deepening.
The MSCI Asia Pacific Index dropped 2.5% to 82.89 as of 10:41 a.m. in Tokyo, as 12 of its constituents fell for each one that advanced. Japan’s Nikkei 225 Stock Average lost 3.4% to 7,979.81 while the Hang Seng was down 3.4% to 12,881. All markets open for trading declined except the Philippines.
Mixed cues from the overseas markets coupled with lack of follow up buying on Dalal-Street kept the markets lackluster throughout the trading session. However, in the second half of the day with strong cues from the European markets sentiments were slightly got boosted with the key indices ending on a flat note. The BSE benchmark Sensex ended flat at 9,329 and the NSE Nifty marginally added 17 points to close at 2,846.
Among the BSE Sectoral indices BSE Bankex index was the top loser, the index fell 1.2%. Among the other major losers were, BSE Auto index (down 1%), BSE IT index (down 0.7%) and BSE Pharma index (down 0.7%).
Among the major gainers were, BSE BSE Metal index (up 1.6%), BSE Realty index (up 1.3%), BSE Oil & Gas index (up 1%) and BSE Capital Goods index (up 0.8%).
Even BSE Mid-cap index gained 0.5% and BSE Small-Cap index added 1.2%.
Shares of Punj Lloyd gained by 0.2% to Rs113 after reports stated that the copany along with US-based Thorium Power would invest up to US$1bn in the venture. The scrip touched an intra-day high of Rs115 and a low of Rs111 and recorded volumes of over 1,00,000 shares on BSE.
Shares of Jindal Steel marginally gained by a percent to Rs860 after reports stated that the company would invest US$150mn in four oil blocks in Georgia. The scrip touched an intra-day high of Rs878 and a low of Rs845 and recorded volumes of over 95,000 shares on BSE.
Shares of Tata Metaliks pared gains and slipped by 1% to Rs75. Reports stated that the company received Centre’s approval for a prospecting license of iron ore mines in Maharashtra. The scrip touched an intra-day high of Rs78 and a low of Rs74 and recorded volumes of over 3,000 shares on BSE.
Shares of ONGC advanced by over 3% to Rs670 after reports stated that the company announced that it secured contract for oil exploration in Ganga basin area of Bihar. The scrip touched an intra-day high of Rs675 and a low of Rs642 and recorded volumes of over 2,00,000 shares on BSE.
Shares of Nucleus Software rallied by over 6% to Rs55 after the company announced its Q3 results with consolidated revenue increased by 14% to Rs842.4mn in three months ended December 31, 2008 compared to Rs736.4mn for the corresponding quarter of the previous year.
Total expenses increased by 25%, the consolidated EBITDA declined to Rs152.1mn in comparison to Rs185.1mn for the corresponding quarter of the previous year.
The scrip touched an intra-day high of Rs63.5 and a low of Rs54.5 and recorded volumes of over 4,00,000 shares on BSE.
Shares Ultratech Cement gained by 2% to Rs380 after the company announced its Q3 results which were almost in-line with market expectations. Net profit for the third quarter was at Rs238cr (down 15%) while, net sales was at Rs16.3cr (up 18%). The scrip touched an intra-day high of Rs415 and a low of Rs360 and recorded volumes of over 1,00,000 shares on BSE.
Shares of JP Associates advanced by 4% to Rs69 after the company posted a net profit of Rs1,655mn for the quarter ended December 31, 2008 as compared to Rs1,558mn for the quarter ended December 31, 2007.
The total Income increased from Rs10,015.7mn for the quarter ended December 31, 2007 to Rs14,471mn for the quarter ended December 31, 2008. The scrip touched an intra-day high of Rs71 and a low of Rs67 and recorded volumes of over 6,00,000 shares on BSE.
Shares Gujarat NRE Coke fell over 6% to Rs26.8 after Q3 profit dropped 73%. Also, net income dropped to Rs132.6mn in the three months ended Dec. 31, from Rs499.7mn a year earlier. The scrip touched an intra-day high of Rs28 and a low of Rs26.5 and recorded volumes of over 15,00,000 shares on BSE.
ENIL
We recommend a buy in Entertainment Network India (ENIL) from a short-term trading perspective. It is apparent from the charts of ENIL that it has been on a medium-term uptrend since its lifetime low of Rs 93, recorded in late November 2008. The stock has been forming higher peaks and higher troughs from this low. On December 30, the stock jumped by 18 per cent with an upward gap, penetrating its long-term down trendline (which was in place since December 2007 peak of Rs 700). The stock gained 9 per cent, accompanied by above average volume, resuming its medium-term uptrend on January 19. It is trading well above the 21- and 50-day moving averages. The weekly relative strength index has re-entered the neutral region from the bearish zone. Considering that the medium-term uptrend line continues to be intact, we are bullish on the stock from a short-term horizon. We anticipate the stock to move up further until it hits our price target of Rs 191. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 163.
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