3QFY09 Results Review
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Thursday, February 05, 2009
Satyam gets new CEO
Scandal hit, Satyam Computer Services new board has appointed A.S Murty as its new chief executive officer (CEO) with immediate effect.
Deepak Parekh, member of the board said, `` Murty is a Satyam veteran of 15 year, who has been in its forefront since January 1994. He brings to play a deep understanding of the organization proven expertise in leading a business unit, overseeing global delivery, nurturing customer relationships and spearheading the entire gamut of the human resource function. He is well respected for his ability to effectively integrate the team and enable a collective decision making which will be critical as Satyam moves into its revival phase.``
It also disclosed the appointment of Homi Khusrokhan and Partho Datta as special advisors, to assist in it management and finance areas, respectively.The board has also affirmed that the company has received bank sanctions worth Rs 6 billion (USD 130 million) a planned fund infusion towards working capital requirements.
Alonside, it also confirmed that salaries of Jan.9,2009 (globally) and fortnightly had been met from its internal accruals.
Shares of the company declined Rs 3.85, or 7.68%, to settle at Rs 46.25. The total volume of shares traded was 18,867,759 at the BSE (Thursday).
BSE Bulk Deals to Watch - Feb 5 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
5/2/2009 505923 CEEKAY DIAKI SHILPA KETAN SHAH S 29400 29.20
5/2/2009 531913 GOPAL IRON DIMPLE A.PARIKH S 40000 4.80
5/2/2009 531524 I.C.S.A. IND CREDIT SUISSE SINGAPORE LIMITED B 623750 80.50
5/2/2009 531524 I.C.S.A. IND CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD S 623750 80.50
5/2/2009 532081 K SERA SERA S V ENTERPRISES B 373634 19.79
5/2/2009 532081 K SERA SERA S V ENTERPRISES S 373634 19.51
5/2/2009 531784 KADAMB CONST ALLIANCE INTERMEDIATERIES AND NETWORK PVT LTD S 20000 23.80
5/2/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 155450 5.82
5/2/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 142654 5.57
5/2/2009 526235 MERCATOR LIN OPG SECURITIES P LTD B 1390719 32.04
5/2/2009 526235 MERCATOR LIN OPG SECURITIES P LTD S 1390719 32.08
5/2/2009 531694 RAINBOW FOUN ANITA JAIN S 37334 5.32
5/2/2009 590077 RANKLIN SOLU A V D NAGESWARA RAO S 26300 24.60
5/2/2009 532790 TANLA CREDIT SUISSE SINGAPORE LIMITED B 2026698 34.35
5/2/2009 532790 TANLA CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD S 2026698 34.35
5/2/2009 517146 USHA MARTIN CREDIT SUISSE SINGAPORE LIMITED B 5218594 23.80
5/2/2009 517146 USHA MARTIN CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD S 5218594 23.80
5/2/2009 511431 VAKRAN SOFTW CLSA MAURITIUS LIMITED S 363208 21.50
5/2/2009 500439 VARD HOLDING PRINCIPAL PNB ASSET MANG PVT LTD AC P S 36150 119.00
5/2/2009 532795 WIRE& WIRLES ASSET ALLIANCE SEC PVT LTD B 1377332 18.29
5/2/2009 532795 WIRE& WIRLES OPG SECURITIES P LTD B 4812659 18.36
5/2/2009 532795 WIRE& WIRLES JUGALKISHOREMODI B 1239480 18.48
5/2/2009 532795 WIRE& WIRLES PRABHUDAS LILLADHER PVT. LTD. B 1141205 18.25
5/2/2009 532795 WIRE& WIRLES ASSET ALLIANCE SEC PVT LTD S 1358132 18.29
5/2/2009 532795 WIRE& WIRLES OPG SECURITIES P LTD S 4812659 18.40
5/2/2009 532795 WIRE& WIRLES JUGALKISHOREMODI S 1239480 18.50
5/2/2009 532795 WIRE& WIRLES PRABHUDAS LILLADHER PVT. LTD. S 1141205 18.26
NSE Bulk Deals to Watch - Feb 5 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
05-FEB-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,8104537,11.63,-
05-FEB-2009,MLL,Mercator Lines Limited,AMBIT SECURITIES BROKING PVT. LTD.,BUY,1338403,30.99,-
05-FEB-2009,MLL,Mercator Lines Limited,GENUINE STOCK BROKERS PVT LTD,BUY,1653194,32.12,-
05-FEB-2009,MLL,Mercator Lines Limited,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,1431964,32.23,-
05-FEB-2009,MLL,Mercator Lines Limited,NIRSHILP SECURITIES PVT. LTD.,BUY,429788,31.04,-
05-FEB-2009,MLL,Mercator Lines Limited,P R B SECURITIES PRIVATE LTD,BUY,2382669,32.42,-
05-FEB-2009,VHL,Vardhman Holdings Limited,DEVAKAR INVESTMENT & TRADING COMPANY PVT. LTD.,BUY,17585,119.05,-
05-FEB-2009,WWIL,Wire and Wireless (India),ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,1570493,18.47,-
05-FEB-2009,WWIL,Wire and Wireless (India),AMBIT SECURITIES BROKING PVT. LTD.,BUY,4138279,18.31,-
05-FEB-2009,WWIL,Wire and Wireless (India),C D INTEGRATED SERVICES LTD,BUY,1268738,18.23,-
05-FEB-2009,WWIL,Wire and Wireless (India),DYNAMIC EQUITIES PVT. LTD.,BUY,1585932,18.71,-
05-FEB-2009,WWIL,Wire and Wireless (India),GENUINE STOCK BROKERS PVT LTD,BUY,1538496,18.14,-
05-FEB-2009,WWIL,Wire and Wireless (India),KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,1825114,18.49,-
05-FEB-2009,WWIL,Wire and Wireless (India),KRISH CAPITAL SERVICES,BUY,5175464,18.33,-
05-FEB-2009,WWIL,Wire and Wireless (India),LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,3042950,18.47,-
05-FEB-2009,WWIL,Wire and Wireless (India),P R B SECURITIES PRIVATE LTD,BUY,5361278,18.34,-
05-FEB-2009,WWIL,Wire and Wireless (India),PRABHUDAS LILLADHER PVT LTD.,BUY,1766446,18.46,-
05-FEB-2009,WWIL,Wire and Wireless (India),RAJESH BAHETI,BUY,1937352,18.26,-
05-FEB-2009,WWIL,Wire and Wireless (India),TRANSGLOBAL SECURITIES LTD.,BUY,2216967,18.41,-
05-FEB-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,8104537,11.66,-
05-FEB-2009,MLL,Mercator Lines Limited,AMBIT SECURITIES BROKING PVT. LTD.,SELL,1319852,30.94,-
05-FEB-2009,MLL,Mercator Lines Limited,GENUINE STOCK BROKERS PVT LTD,SELL,1653194,32.14,-
05-FEB-2009,MLL,Mercator Lines Limited,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,1431964,32.28,-
05-FEB-2009,MLL,Mercator Lines Limited,NIRSHILP SECURITIES PVT. LTD.,SELL,1628533,31.30,-
05-FEB-2009,MLL,Mercator Lines Limited,P R B SECURITIES PRIVATE LTD,SELL,2370419,32.48,-
05-FEB-2009,VAKRANSOFT,Vakrangee Softwares Limit,CLSA (MAURITIUS) LIMITED,SELL,206832,21.50,-
05-FEB-2009,VHL,Vardhman Holdings Limited,PRINCIPAL TAX SAVINGS FUND,SELL,34045,119.00,-
05-FEB-2009,WWIL,Wire and Wireless (India),ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,1570493,18.42,-
05-FEB-2009,WWIL,Wire and Wireless (India),AMBIT SECURITIES BROKING PVT. LTD.,SELL,4113279,18.34,-
05-FEB-2009,WWIL,Wire and Wireless (India),C D INTEGRATED SERVICES LTD,SELL,1268738,18.27,-
05-FEB-2009,WWIL,Wire and Wireless (India),DYNAMIC EQUITIES PVT. LTD.,SELL,1585932,18.64,-
05-FEB-2009,WWIL,Wire and Wireless (India),GENUINE STOCK BROKERS PVT LTD,SELL,1480116,18.17,-
05-FEB-2009,WWIL,Wire and Wireless (India),KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,1850614,18.35,-
05-FEB-2009,WWIL,Wire and Wireless (India),KRISH CAPITAL SERVICES,SELL,5175464,18.35,-
05-FEB-2009,WWIL,Wire and Wireless (India),LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,3042950,18.52,-
05-FEB-2009,WWIL,Wire and Wireless (India),P R B SECURITIES PRIVATE LTD,SELL,5361278,18.34,-
05-FEB-2009,WWIL,Wire and Wireless (India),PRABHUDAS LILLADHER PVT LTD.,SELL,1766446,18.48,-
05-FEB-2009,WWIL,Wire and Wireless (India),RAJESH BAHETI,SELL,1937352,18.27,-
05-FEB-2009,WWIL,Wire and Wireless (India),TRANSGLOBAL SECURITIES LTD.,SELL,2216967,18.47,-
Post Session Commentary - Feb 5 2009
Market sentiments remained weak during the trading session that led the Indian market to close in red terrain due to the unfavorable global markets. Most of the Asian markets slipped into red after a gap up opening and European markets were also trading on down beat note. Significant selling by the foreign investors also weighed on the sentiments. Drop in inflation number after continuous two weeks rise, to 5.07% for the week ended Jan 24 2009, from 5.64% of the previous week, also failed to bring any respite.
The domestic market today opened slightly higher but soon after start turned volatile following Wall Street losses overnight along with mixed cues from the Asian markets. The US stock market on Wednesday knock down with Dow Jones closed below the 8K mark on the back of disappointing earnings results from Walt Disney and Kraft Foods that over shadowed the better than expected economic reports. Investors were edgy also on account of heavy selling by foreign investors. Further, benchmark indices continued to lose ground without any sign of recovery on the back of heavy selling pressure. Decline in inflation number failed to lift the sentiments and market remained directionless. During final trading hours, though market tried to recover but was unable to depart the red terrain. BSE Sensex ended below 9,100 mark and NSE Nifty closed below 2,800 level. From the sectoral front, investors off-loaded their position on majority of indices. Among those, Auto, Consumer Durable, IT, Capital Goods, Teck, Oil & Gas and Reality stocks contributed to most of the selling pressure. Midcap and Smallcap stocks also lost ground during the trading session. However, Metal and Pharma stocks remained in limelight as witnessed most of the buying from these baskets.
Among the Sensex pack 22 stocks ended in red territory and 8 in green. The market breadth indicating the overall health of the market remained negative as 1459 stocks closed in red while 1001 stocks closed in green and 108 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 110.97 points at 9,090.88 and NSE Nifty ended down by 23 points at 2,780.05. Broader market indices were weak as BSE Mid Caps and Small Caps ended with losses of 18.46 points and 27.79 points at 2,842.10 and 3,245.30 respectively. The BSE Sensex touched intraday high of 9,247.09 and intraday low of 9,017.08.
Losers from the BSE Sensex pack are Sterlite Industries (5.71%), M&M Ltd (5.69%), MAruti Suzuki (4.07%), HDFC (3.66%), TCS Ltd (3.27%), Tata Motors (2.77%), L&T Ltd (2.57%), RCom (2.14%) and Hindalco (1.92%).
Gainers from the BSE Sensex pack are Grasim Industries (3.13%), Tata Steel (1.59%), Ranbaxy Lab (1.36%), ACC Ltd (0.64%), ICICI Bank (0.35%) and ITC (0.25%).
Inflation for the week ended 24th January 2009, declined to 5.07% against 5.64% the previous week. The WPI for all commodities slid 0.2% at 230.1 on a week-on-week basis. The WPI for manufactured products was also down 0.5% on a week-on-week basis.
On the global markets front, the Asian markets ended mostly lower. Shanghai Composite index, Nikkei 225, Straits Times and Seoul Composite index ended down by 9.73, 89.29, 2.79 and 17.49 points at 2,098.02, 7,949.65, 1,704.6 and 1,177.88 respectively. However, Hang Seng closed higher by 115.01 points at 13,178.9. Investors were cautious as Dow Jones Industrial Average on Wednesday closed below 8000 mark for only the third time this year, amid concerns about fading U.S. consumer demand. However, shares of shipping companies got a boost on news that China may announce stimulus package for shipbuilders soon that will include a reduction in age limit of vessels. Meanwhile, China approved a government stimulus plan for the textile and machinery industry. Further there are reports that the government is considering measures including raising export tax rebates and lending help.
European markets are trading in red tracking Wall Street losses overnight. FTSE 100 is trading lower by 16.70 points at 4,211.9 and the DAX index is trading down by 29.99 points at 4,462.8.
The BSE Auto index fell ended lower by (1.98%) or 48.9 points at 2,416.68 as higher interest rates and sluggish consumer spending have dented demand for automobiles, including for cars, trucks, motorcycles, scooters and three-wheelers. Main losers are M&M Ltd (5.69%), Tata Motors (2.77%), Maruti Suzuki (4.07%) and Exide Industries (1.61%).
The BSE Consumer Durables index ended lower by (1.88%) or 30.24 points to close at 1,580. Gitanjali GE (3.19%), Blue Star L (2.89%) and Titan Ind (2.39%) ended in negative territory.
The BSE IT index tumbled (1.86%) or 40.95 points to close at 2,155.05 after NASSCOM cut export growth target for the current year. NIIT Ltd (4.78%), TCS Ltd (3.27%), Tech Mahindra (2.41%), Oracle Fin (2.16%) and Wipro Ltd (1.90%) ended in red.
The BSE Capital Goods index closed with decrease of (1.47%) or 89.8 points at 6,017.11. Scrips that lost are ABB Ltd (5.59%), Usha Martin (4.43%), Gammon Indi (3.77%), Lakshmi MA W (2.80%), L&T Ltd (2.57%) and Kalpat Pow T (2.49%).
The BSE Metal stocks extended gains on firm price movement on the London Metal Exchange as ended up by (0.15%) or 7.41 points at 4,951.90. Scrips that gained are Sesa Goa Ltd (5.80%), Steel Authority (3.72%), Jindal Steel (2.44%), Hindustan Zinc (2.13%), Ispat Industries (1.62%) and Tata Steel (1.59%).
The BSE Pharma index also ended higher by (0.03%) or 0.73 points at 2,653.27. Gainers are Dishman Pharma (3.05%), Lupin Ltd (2.79%), Pfizer Ltd (1.89%), Ranbaxy Lab (1.36%) and Apollo Hos E (1.54%).
Tata Motors fell by 2.77% as it owes more than Rs. 1,200 crore in unpaid dues to its suppliers and vendors.
BHEL decreased by 0.52%. The company has dropped acquisition plans of an East European firm that make coaches and engines for its technology. Meanwhile it is close to bags an order worth Rs8bn from the Indian Railways for manufacturing 150 electric locomotives.
ACC Ltd ended marginally up by 0.64%. The Company has posted a net profit of Rs 12127.843 million for the year ended December 31, 2008 where as the same was at Rs 14385.870 million for the year ended December 31, 2007. Total Income is Rs 75973.332 million for the year ended December 31, 2008 where as the same was at Rs 71681.656 million for the year ended December 31, 2007. The company board have recommended payment of final dividend at the rate of 10/- (Rupees Ten only) per equity share of Rs 10/- each. Along with the Interim Dividend of Rs 10 per share paid earlier, the total dividend for the year is Rs 20/- (Rupees Twenty only) per share.
United Spirits advanced by 5.61% after the news flows that the world''s biggest alcohol drinks group Diageo, reportedly wants more than the initial less-than-15% stake in offered in the company.
SBI February 2009 futures at discount
RIL February 2009 futures most active
Nifty February 2009 futures were at 2773.40, a discount of 6.65 points as compared to the spot closing of 2780.05. Turnover in NSE's futures & options (F&O) segment declined to Rs 30808.31 today, 5 February 2009 from Rs 32,068.03 crore on Wednesday, 4 February 2009.
Reliance Industries (RIL) February 2009 futures were at premium at 1290.40 as compared to spot closing of Rs 1288.80. It was the most active contract with turnover of Rs 777.67 crore.
Infosys Technologies February 2009 futures were at premium at 1262.05 compared to the spot closing of Rs 1255.85.
However SBI February 2009 futures were at discount at 1089 compared to the spot closing of 1094.75.
In the cash market, the S&P CNX Nifty fell 23 points or 0.82% at 2780.05.
Sensex drops 1.21% on weak global cues
Lingering worries about the economic slowdown, weak global markets and sustained selling by foreign funds pulled the market lower, snapping last two days' gains. Nevertheless, the key benchmark indices in late trade made some recovery from the day's low as index heavyweights ICICI Bank, Reliance Industries and Infosys came off the day's low. The BSE 30-share Sensex was down 110.97 points, or 1.21%, off close to 75 points from the day's low.
After opening on a positive note tracking firm Asian stocks, the market soon fell into the red as investor sentiment remained edgy on heavy selling by foreign institutional investors this year. The market soon regained positive zone. The market weakened in morning trade as some Asian markets slipped into the red after swinging between positive and negative zone. It extended losses later as most of the Asian stocks slipped into the red.
The market cut losses in mid-afternoon trade as bank stocks recovered. A bout of volatility was witnessed in late trade.
Lingering concerns about the economic slowdown weighed on the market. A recent report by Ministry of Labour said that the economic slowdown claimed close to five lakh jobs in the December 2008 quarter in sectors that accounted for more than 60% of the country's GDP last fiscal. There is fear that job cuts will hit aggregate demand, mainly the discretionary spending by consumers, which in turn may accelerate the slowdown in the economy.
India's economy is expected to grow at 7% or less in the year to March 2009 due to declining exports and moderating domestic consumption, compared with 9% or higher growth in the last three years.
Investor sentiment was edgy due to sustained selling by foreign funds. Foreign funds have sold shares worth Rs 4,435 crore in calendar year 2009 so far (till 3 February 2009). Domestic funds have absorbed selling by foreign funds. Domestic funds provisionally bought shares worth a net Rs 284 crore on Wednesday, 4 February 2009. In calendar 2009, domestic funds have bought shares worth a net Rs 3,832.90 crore, as per BSE data.
European shares fell early on Thursday, weighed down by financial stocks after Deutsche Bank posted a big loss and insurer Swiss Re slumped on a large writedown. Key benchmark indices in France, Germany and UK were down by between 0.12% to 0.78%.
Most of the Asian markets slipped into the red in contrast to gains earlier in the day, on deepening concerns about US consumer demand. Key benchmark indices in Japan, China, South Korea, Singapore and Taiwan fell by between 0.16% to 1.46%. Hong Kong's Hang Seng rose 0.88%.
Asian shares had briefly gained earlier in the day on hopes for a recovery in China's economy. An improved manufacturing data in China has raised hopes that its downturn may be bottoming out. Data during trading hours in Asia on Wednesday showed China's official purchasing managers' index rose, even though it remained below a reading of 50 that divides expansion from contraction. The index rose to 45.3 for January 2009, up from 41.2 in December 2008 and a record low of 38.8 plumbed in November 2008.
China unveiled an eye-popping $585 billion spending plan in November 2008, and central bank governor Zhou Xiaochuan said in remarks published on Wednesday that the pump-priming had a positive impact.
US stocks fell on Wednesday, 4 February 2009, as a glum profit forecast from the top North American food maker Kraft Foods signaled consumers are skimping even on the basics and investors worried that government efforts to rescue banks could wipe out their shareholders. Even so, a report showing that the vast service sector shrank less than expected in January 2009 spurred technology gains, helping the Nasdaq finish near break-even. But that was before Cisco Systems Inc, the network equipment maker that is a tech bellwether, forecast a slide of as much as 20% in its current quarter revenue, hitting other tech shares after the bell.
The Dow Jones industrial average fell 121.70 points, or 1.51%, to 7,956.66. The Standard & Poor's 500 Index shed 6.28 points, or 0.75%, to 832.23. The Nasdaq Composite Index dipped 1.25 points, or 0.08%, to 1,515.05.
The BSE 30-share Sensex lost 110.97 points, or 1.21%, to 9,090.88. The Sensex rose 45.24 points at the day's high of 9,247.09 in early trade. The Sensex fell 184.77 points at the day's low of 9,017.08 in mid-afternoon trade.
The S&P CNX Nifty was down 23 points, or 0.82%, to 2,780.05.
The market breadth, indicating the overall health of the market, was negative on BSE with 1,009 shares advancing as compared with 1,487 that declined. A total of 61 shares remained unchanged.
The BSE clocked turnover of Rs 2,580 crore lower than Rs 2,947.14 crore on Wednesday, 4 February 2009. Nifty February 2009 futures were at 2773.40, a discount of 6.65 points as compared to the spot closing of 2780.05. Turnover in NSE's futures & options (F&O) segment declined to Rs 30808.31 from Rs 32,068.03 crore on Wednesday, 4 February 2009.
As per the provisional figures on BSE, the foreign institutional investors (FIIs) sold shares worth Rs 26.97 crore and domestic funds sold shares worth Rs 100.72 crore today, 5 February 2009.
The BSE Metal index (up 0.15%), the BSE Healthcare index (up 0.03%), the BSE FMCG index (down 0.19%), the BSE PSU index (down 0.4%), the BSE Bankex (down 0.55%), the BSE Power index (down 0.61%), the BSE Realty index (down 0.73%), the BSE Oil & Gas index (down 0.91%), outperformed the Sensex.
The BSE Auto index (down 1.98%), the BSE Consumer Durables index (down 1.88%), the BSE IT index (down 1.86%), the BSE Capital Goods index (down 1.47%), the BSE Teck index (down 1.44%), underperformed the Sensex.
The market snapped last two days' winning streak. The BSE Sensex had risen 135.15 points or 1.49% to 9,201.85 on 4 February 2009 from 9,066.70 on 2 February 2009. The Sensex is down 556.43 points or 5.76% 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
Among the 30-share Sensex pack, 21 fell while rest gained. Reliance Communications, Jaiprakash Associates, Hindustan Unilever, Tata Power Company fell by between 1.51% to 2.14%.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) fell 1.58% to Rs 1,286.75 on profit booking. The stock came off the day's low of Rs 1,271.60. From a recent low of Rs 1,080.90 on 13 January 2009, the stock had jumped 20.95% to Rs 1,307.40 on 4 February 2009.
Outsourcing focussed IT firms fell after a senior official from IT bellwether Infosys Technologies said there is pricing pressure adding that the software export growth could be lower than 16% in the year ending March 2009. Infosys, India's second largest software services exporter, fell 1.79% to Rs 1,260 off the day's low of Rs 1,238.10.
India's third largest software services exporter, Wipro fell 1.9% as its American depository receipt (ADR) fell 1.16% overnight. India's fifth largest IT exporter by sales HCL Technologies rose 0.33%. TCS, India's largest software services exporter by sales fell 3.27%.
On Wednesday, the National Association of Software and Service Companies (Nasscom) cut export growth target for the current year. Nasscom said on Wednesday India's software and services exports should rise 16-17 % to about $47 billion in the year to March 2009, slower than 21-24% forecast earlier.
Auto stocks remained weak as high interest rates and sluggish consumer spending have dented demand for automobiles, including for cars, trucks, motorcycles and scooters. India's largest tractor maker by sales Mahindra & Mahindra fell 5.69%.
India's largest commercial vehicle maker by sales Tata Motors fell 2.77% on reports it has run into payment problems with vendors and suppliers as it is grappling with declining sales and the financial burden of acquiring British brands Jaguar and Land Rover.
India's largest car maker by sales Maruti Suzuki India tumbled 4.07% after its Japanese-parent Suzuki Motor slashed profit forecast as slumping demand and a strong yen hammered third-quarter results.
Bank stocks recovered from lower level on hopes lower interest rates will spur lending growth. India's largest private sector bank by net profit ICICI Bank rose 0.35% to Rs 390.95 off the day's low of Rs 384.10.
India's second largest private sector bank by net profit HDFC Bank fell 1.39%.
India's largest bank in terms of assets and branch network State Bank of India fell 0.27% to Rs 1,093.90 off the day's low of Rs 1,083. State Bank of India will lower its home loan rates to 8% for new customers over the coming year, the second time it has reduced mortgage rates in as many months as the economy slows. The new rate will be offered between 2 February and 30 April 2009. SBI had previously charged 9.75% on a floating basis for home loans, and 11.25-12.25% on a fixed basis.
Inflation based on the wholesale price index rose 5.07% in 12 months to 24 January 2009, below the previous week's annual rise of 5.64%, data released by the government in early afternoon today, 5 February 2009, showed. It was the slowest annual rise since 9 February 2008 when inflation was at 4.98%. The Reserve Bank of India (RBI) said in its monetary policy review on 27 January 2009 it expected annual inflation to be below 3% by the end of the 2008/09 fiscal year in March 2009.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell 3.08% as investors were skeptical of about its interest in fraud-hit IT firm Satyam Computer. L&T has built up a 12% stake and is Satyam's largest shareholder. Other capital goods stocks, Bharat Heavy Electricals, ABB, Crompton Greaves fell by between 0.08% to 5.59%.
Metal stocks extended yesterday's (4 February 2009) gain as improved manufacturing data in China on Wednesday suggested its downturn may be bottoming out. Tata Steel, Steel Authority of India, Hindustan Zinc, National Aluminum Company and Hindalco Industries rose by between 1.46% to 3.72%. China is the world's largest consumer of industrial metals.
Ispat Industries gained 1.62% extending gains for the third consecutive day, on reports lenders have allowed the firm to defer payment of Rs 586 crore.
But India's largest copper maker by sales Sterlite Industries plunged 5.71% on reports the company is close to buying the US-based bankrupt copper miner Asarco LLC.
India's largest cement maker by sales ACC rose 0.64% to Rs 531.50 off the day's low of Rs 510.10. ACC's net profit fell 23% to Rs 1,099 crore in financial year ended December 2008 over financial year ended December 2007. The company announced the result during the market hours today. The firm had recently reported a 12.5% rise in January 2009 shipments from a year ago, to 1.89 million tonnes. The company, in which Swiss cement maker Holcim holds a more than 46% stake, said production rose to 1.87 million tonnes from 1.67 million tonnes a year earlier.
Shipping stocks rose tracking the overnight surge in the Baltic Dry Index, which measures changes in the cost of shipping commodities. Shipping Corporation of India, Mercator Lines and Great Eastern Shipping rose by between 0.66% to 23.12%.
The Baltic dry index notched up its biggest single-day gain on Wednesday 4 February 2009 at more than 14.6 %, on signs of recovering demand for raw materials in China.
Avaya GlobalConnect advanced 3.3% on reports institutional investors and some high net worth individuals have demanded an open offer from the promoters.
Sahara One Media & Entertainment fell 7.02% after it said on Thursday its promoters have pledged 15 lakh shares, or 6.97% of the total equity, with IDBI Bank as collateral for loans.
Lanco Infratech slipped 0.27%, after the company said its promoters have pledged more than 1.89 crore share of the company.
Wire & Wireless clocked the highest volume of 5.78 crore shares on BSE. Firstsource Solutions (2.2 crore shares), Satyam Computer Services (1.88 crore shares) and Ispat Industries (1.47 crore shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 192.86 crore on BSE. Wire & Wireless (Rs 106.38 crore), Reliance Infrastructure (Rs 99.35 crore), Satyam Computer Services (Rs 87.77 crore) and Reliance Capital (Rs 80.37 crore) were the other turnover toppers in that order.
Pre Session Commentary - Feb 5 2009
Today domestic markets are likely to open positive. Though the US markets tumbled yesterday due to worse earnings report, the Asian markets have opened with a positive note. The sentiments across the domestic arena are likely to move the markets in the northward direction amidst high essence of volatility. The deputy chairman of the planning commission Mr. Montek Singh Ahuwalliah has emphasized the need of further stimulus package to boost the economic growth and sustain a healthy economy in the turbulence prevailing across the world.
On Wednesday, the markets opened with a remarkable positive gap but later due to a volatile session it pared off early gains to close with a marginal gain. The session started with a phenomenal trend as was witnessed in other Asian markets. However due to lack of any supportive news the sentiments deteriorated towards the end. Sectors like CD & HC faced burns, however Metal, Realty and Oil & Gas which were brutally shattered for two consecutive previous days, managed to bounce back in today’s trade, registering gains of 2.99%, 1.18% and 0.73% respectively. Mid caps and Small caps also felt the heat of selling pressure as they lost 0.45% and 0.03% respectively. During the session we expect the markets to be trading volatile.
The BSE Sensex closed up by 52.55 points at 9,201.85 and NSE Nifty ended with gains of 19.15 points at 2,803.05. The BSE Mid Caps and Small Caps ended with losses of 13.07 points and 0.94 points at 2,860.56 and 3,273.09 respectively. The BSE Sensex touched intraday high of 9,338.21 and intraday low of 9,164.16.
The US markets on Wednesday closed negative. The investors succumbed to concerns about disappointing earnings of the consumer companies. On the other the macro economic news were not as bad as expected. The January ISM Service Index came in at 42.9, which is better than the consensus estimate of 39.0. There was better than expected job cuts during the month of January as the total job lost during the month was 5,22,000 as against the anticipated 5,35,000. However investors could not sustain the early trend and due to lack of support the markets started to buckle down.
The Dow Jones Industrial Average (DJIA) closed lower by 122.34 points at 7,956.02 NASDAQ index lost 1.25 points at 1,515.05 and the S&P 500 (SPX) lost 6.28 points at 832.23.
Indian ADRs ended lower. In technology sector, Infosys ended down by 1.31% along with Wipro by 1.16%. Further, Satyam ended with cut of 3.52% while Patni Computers closed up by 1.81%. In banking sector ICICI Bank and HDFC Bank lost 0.49% and 0.81% respectively. In telecommunication sector, Tata Communication and MTNL dropped by 2.62% and 4.33 respectively. However, Sterlite Industries increased by 2.15%.
Today major stock markets in Asia have opened mixed. Shanghai composite is up by 37.38 points to 2,145.13, Japan''s Nikkei is also down by 3.11 points at 8,035.83. Hang Seng surged 350.02 points at 13,413.91. South Korea''s Seoul Composite is up by 2.18 points at 1,197.55 and Singapore''s Strait Times is also up by 10.56 points to 1,717.95.
The FIIs on Wednesday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 1,221.30 Crore and gross debt purchased stood at Rs 385.70 Crore, while the gross equity sold stood at Rs 1,382.50 Crore and gross debt sold stood at Rs 137.90 Crore. Therefore, the net investment of equity and debt reported were Rs (161.20) Crore and Rs 247.80 Crore respectively.
On Wednesday, the Indian rupee ended at 48.82/83 per dollar, unchanged from Tuesday’s close of 48.81/82. The rupee touched its two weeks high at 48.60, however later fell as the stock markets pared off its early gains.
On BSE, total number of shares traded were 36.92 Crore and total turnover stood at Rs 2,947.14 Crore. On NSE, total number of shares traded were 74.47 Crore and total turnover was Rs 78.99 Crore.
Top traded volumes on NSE Nifty – Unitech with 37220468 shares, DLF with 29311808 shares, Suzlon Energy with 15289334 shares, SAIL with total volume traded 10191964 shares followed by Reliance Comm with 9825363 shares.
On NSE Future and Options, total number of contracts traded in index futures was 778867 with a total turnover of Rs 10,055.32 Crore. Along with this total number of contracts traded in stock futures were 817006 with a total turnover of Rs 7,439.63 Crore. Total numbers of contracts for index options were 970956 with a total turnover of Rs 13,913.49 Crore and total numbers of contracts for stock options were 66308 and notional turnover was Rs 659.59 Crore.
Today, Nifty would have a support at 2,778 and resistance at 2,849 and BSE Sensex has support at 9,085 and resistance at 9,310.
Market may extend gains
The market may extend last two days' gains on higher Asian shares and on expectations of economic recovery. Decent to strong growth in cement dispatches of top cement firms in January 2009 and record monthly by Maruti Suzuki, India's biggest small car maker by market share, in the month just gone by has raised hopes of an economic recovery as rural demand remains strong. The government will unveil the weekly inflation data today, 5 February 2009.
The BSE Sensex rose 135.15 points or 1.49% to 9,201.85 on 4 February 2009 from 9,066.70 on 2 February 2009.
But the market sentiment remains edgy due to selling by foreign funds. However, the outflow of foreign institutional investors (FIIs) was a miniscule 27.08 crore on Wednesday, 4 February 2009, as per the provisional data released by the stock exchanges after trading hours. Foreign funds have sold shares worth Rs 4435 crore in calendar year 2009 so far (till 3 February 2009).
Domestic funds have absorbed selling by foreign funds. Domestic funds provisionally bought shares worth a net Rs 284 crore on Wednesday. In calendar 2009, domestic funds have bought shares worth a net Rs 3,832.90 crore, as per BSE data.
Asian stocks gained on Thursday, led by mining and shipping companies, on speculation stimulus in China will boost demand for metals and transport services. Key benchmark indices in Hong Kong, China, Singapore, South Korea and Taiwan were up by between 0.06% to 2.74%.
Market may remain volatile
The market is likely to witness sideways movement on the back of a strong intra-day volatile moves. Stocks across sectors along with heavyweights may gyrate sharply. Overnight weakness in the US indices and mixed Asian markets in mornings trades may further dampen the investors' sentiment. On the technical side, the Nifty has a stiff resistance at 2850 and the downside cap at 2750, while the Sensex could test higher levels of 9350 and has a likely support at 9050.
US indices ended negative on Wednesday, with the Dow Jones closing below at 7960, 122 points down. The Nasdaq lost a points at 1515.
Majority of the Indian floats ended in the red. MTNL was the biggest loser and lost over 4.33% followed by Satyam which was down 3.52%. Infosys, Wipro, Tata Motors, ICICI Bank, HDFC Bank, VSNL and Rediff were down 0.50-2% each. However, Dr reddy moved up over 2.15% and Patni Computer gain over 1.81%.
Crude oil prices in the US market slipped on Wednesday, with the Nymex light crude oil for March 09 delivery falling by 46 cent to close at $40.32 a barrel and in the commodity space, the Comex gold for April 09 series also gained $9.70 to settle at $902.20 a troy ounce.
Trading Calls - Feb 5 2009
Nifty (2803) Sup 2760 Res 2855
Buy STER (279)
SL 274 Tgt 288, 290
Buy Sun TV (168)
SL 164 Tgt 176, 177
Sell Infosys (1283)
SL 1299 Tgt 1255, 1245
Sell Bajaj Auto (456-459)
SL 464 Tgt 448, 444
Sell HDFC (1442)
SL 1460 Tgt 1415, 1405
Daily News Roundup - Feb 5 2009
Lenders allow Ispat to defer its payment of Rs5.9bn. (ET)
IOC plans to buy 1.5mn tons of crude from Cairn India. (ET)
IOC, HPCL, BPCL seek Rs100bn more from Government. (BL)
NPCIL and Areva sign nuclear pact. (ET)
Essar Offshore Subsea, a division of Essar Projects, bagged Rs10bn order from ONGC. (ET)
BPTP, which bagged the Rs50bn 95 acre plot of land in Noida, has returned the property back to the district authority. (FE)
Maytas Infra plans to set up task force to provide managerial assistance to the company. (FE)
Coal India may assure 75% of fuel supply under the fuel supply agreement. (FE)
Subhiksha Group plans to raise funds through its NBFC arm Vishwapriya Financial Services. (ET)
Glenmark Pharmaceuticals received US regulatory approval for marketing of Lithium carbonate capsules. (FE)
Corporation Bank reduces lending and deposit rates. (FE)
Bank of India raises Rs4bn via bonds. (FE)
Eicher Motors January sales dropped by 58% to 940 units against 2,253 last year. (Mint)
Tata Metaliks gets prospecting license for iron ore mines in Maharashtra. (BL)
Research company raises concern on DLF’s fund raising plan. (BL)
JSPL hopes to complete first phase of Angul project by 2010. (BL)
Ashapura Minechem seeks partner for Maharashtra project. (BS)
Educomp to foray into budget schools.(BS)
State clears up to 25% hike in pay and pension. (ET)
NASSCOM lowers IT services exports growth to 17% in FY09. (ET)
Credit flow to housing sector remains stagnant despite rate cuts. (ET)
Government plans to levy special duty on import of LAB. (ET)
Petroleum ministry is seeking re-introduction of seven year income tax holiday for natural gas producers. (ET)
Government issues Rs219bn bonds to IOC (Rs119.4bn), BPCL (Rs53.1bn) and HPCL (Rs46.8bn). (ET)
Banks bar textile exporters from currency hedging to curb defaults. (ET)
TRAI has asked telecom companies to drop call rates. (FE)
Direct tax mop up growth slows to 13.2% (FE)
441 mining projects were cleared in 2008, a jump of 63.9%. (FE)
Steel ministry plans to cut import duty on ferro nickel. (FE)
Government announced the issue of 6.65% Fertiliser Companies Government of India Special Bonds 2023 for Rs60bn at par to 23 fertiliser companies as compensation towards fertiliser subsidy. (BL)
Government launches ethanol blending on pilot basis. (BS)
Caution gains weight
Stock market - In the short run it's a voting machine, but in the long run it's a weighing machine
The voting may take some time as investors remain undecided whether to vote for the bulls or bears. US markets may have reached buying levels according to Warren Buffett’s metrics. But they continue to falter and so does our market. Key indices have been in a range over the past few sessions and the trend may continue.
Today, we see a cautious start given the weakness across global markets. Depending on the news flow and global markets, our indices too may tend to swing either way. Inflation may cool to its lowest level in almost a year as we see it around 5.3 pc. This could bring a rebound.
The best way to tackle the current indecisive trend is to take each day as it comes.
Among major results today, we expect ACC to report a top-line growth of 2.8% to Rs18.3bn. The OPM is likely to witness a 400bps dip. The bottom-line is expected to be around Rs2.26bn.
According to Warren Buffett, US stocks are a logical investment when their total market value equals 70% to 80% of Gross National Product and that seems to have happened in the US.
Stock specific action will continue in stocks like Polaris which is rumored to bag a large order. Wireless India and Dish TV seem to have caught speculators attention but we wouldn’t expect you to venture in wild speculation.
Bhel could bag a Rs8bn deal from the railways. The IT sector woes continue as Nasscom says it has missed its target. The slowdown in the economy seems to have taken its toll with half a million jobs being lost in India. The RBI is now expected to effect rate cuts after the interim budget which is scheduled mid-February.
Metals and realty stocks came to the rescue of bulls, as traders were quick to lap up on stocks for short-term gains. While outlook on both these sectors remains weak, there could be a temporary rebound in select stocks here, especially those which have melted more.
The Dow Jones closed below the 8k mark for the third time this calendar year as fears continued to swirl around Bank of America’s nationalization. Also, weak earnings from Walt Disney and Kraft Foods and a sell off in the banking sector added to worries about the impact of the recession. The Dow Jones lost 121 points, or 1.5%. The Standard & Poor's 500 index fell 6 points, or 0.8% while the Nasdaq was a tad lower dipping by a solitary point.
Disappointing corporate results and economic reports remain the order of the day. Cisco Systems reported lower quarterly sales and earnings but beat expectations.
President Obama announced new rules on that caps compensation for executives at $500,000 for firms which get federal bailout money. The economic stimulus package is being debated in the Senate this week.
Among other important headlines today:
Tata Motors has reportedly failed to pay its vendors and suppliers. Meanwhile, Eaton Corporation has signed an agreement with Tata Motors for supply of heavy duty synchronized transmission up to 2014.
ONGC is set to revive its 15mn ton Rajasthan refinery plan.
Cairn India plans to invest US$3.8bn in Rajasthan fields.
PTC India plans to mobilize Rs12bn through QIP.
Ashok Leyland has announced it will rework its LCV tie up with Nissan.
The company reported a sharp drop in its January sales to 2,444 against 9,112 units a year ago.
ATE has dismissed Reliance Power’s petition against Lanco Infratech challenging the expansion of the Anpara project. (Mint)
Diageo is seeking a greater stake in United Spirits Ltd than sub-15% offered to it earlier.
Reliance Infrastructure and HCC are in the race for developing the Worli-Haji Ali sea link project.
State Government has ordered an inquiry into violations of the Maharashtra Ceiling on Agricultural Holdings Act by HCC’s Lavasa.
Markets ended the day with modest gains yet again. It has been the second straight day where key indices have lost ground towards the end. The slide was led by selling witnessed in the consumer durables, Pharma and select IT stocks. The BSE benchmark Sensex slipped nearly 140 points and the NSE nifty index declined almost 40 points from their respective day’s high. Finally, the Sensex rose 52 points to close at 9,201 and the Nifty rose 19 points to close at 2,803.
Among the 30-components of Sensex, 19 stocks ended in the green and 11 stocks ended in the negative terrain. Among the major gainers in the Sensex were DLF, Tata Steel, Sterlite, JP Associates and Maruti. On the other hand, major losers were Ranbaxy, ICICI Bank, Hindalco and Reliance Infra.
Shares of PTC India declined by 5% to Rs62. The board of directors of the company approved raising of funds upto Rs12bn through the Qualified Institutionals Placement ( NCDs upto Rs4bn plus Warrants of upto Rs8bn) and at such price and terms to be decided by a Committee of Directors. The scrip touched an intra-day high of Rs71 and a low of Rs61 and recorded volumes of over 4,00,000 shares on BSE.
Shares of RPL gained by a percent to Rs84.1. According to reports, Chevron Corp. may sell its 5% stake in the company. The scrip touched an intra-day high of Rs85 and a low of Rs82 and recorded volumes of over 35,00,000 shares on BSE.
Shares of Satyam Computer ended lower by 6% to Rs50. According to reports, L&T may offer as much as Rs50 per share.
L&T had earlier tripled its stake in Satyam to 12%. The scrip touched an intra-day high of Rs56 and a low of Rs48 and recorded volumes of over 26,00,000 shares on BSE.
Shares of Balrampur Chini declined by 3% to Rs58 after reports stated that it expects its BHEL sugar output to fall 38% in the year to September 2009. The scrip touched an intra-day high of Rs61 and a low of Rs55 and recorded volumes of over 22,00,000 shares on BSE.
Shares of WWIL sky rocketed by over 77% on the back of huge volumes. The stock opened at Rs9.7 and finally ended at Rs17.1 after hitting an intra-day high of Rs18.2 and a low of Rs9.70 and recorded volumes of over 70mn shares on BSE.
Shares of Akruti City advanced by 3.5% to Rs827. The company announced that its promoters pledged 5% equity to Hi-Tech housing projects. The scrip touched an intra-day high of Rs839 and a low of Rs781 and recorded volumes of over 1,00,000 shares on BSE.
With no local triggers to play for, the market remains at the mercy of global trends and daily news- flow. Expect a lot of stock specific action. Volatility will continue to test even the most seasoned traders.
Weak economic reports increase precious metal's appeal as alternate investment
After dropping in the previous two sessions, bullion metal prices went up on Wednesday, 04 February, 2009. Weak economic data increased the appeal of the precious metal as a safe haven against alternatives.
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. But silver prices dropped.
On Wednesday, Comex Gold for April delivery rose $9.7 (1.1%) to close at $902.2 an ounce on the New York Mercantile Exchange. Price shed almost 3.9% in previous two sessions. Last week, gold prices ended higher by 3.5%. For January, 2009, gold had gained 3.9%. Year to date, gold prices are lower by 2.2%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (13%) since then.
On Wednesday, Comex silver futures for March delivery rose 17 cents (1.4%) to end at $12.47 an ounce. For 2008, silver had lost 24%.
The ADP employment index reported today that U.S. private sector companies shed a seasonally-adjusted 522,000 jobs in January, 2009.
In a separate report, the Institute for Supply Management reported that U.S nonmanufacturing sectors continued to contract but at a slower pace in January. The ISM's non-manufacturing index rose to 42.9% last month from 40.1% in December. In November, the index reached a record low of 37.4%. Readings below 50% indicate that more firms are contracting than expanding.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.
Prior to 2008, gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for April delivery closed higher by Rs 65 (0.5%) at Rs 14,054 per 10 grams. Prices rose to a high of Rs 14,170 per 10 grams and fell to a low of Rs 13,962 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed Rs 208 (1.06%) higher at Rs 19,740/Kg. Prices opened at Rs 19,595/kg and went to a high of Rs 19,896/Kg during the day's trading.
Crude pares early gains
Crude inventories climb more than expected
Oil prices gave up earlier gains and fell lower and closed just a little above $40/barrel on Wednesday, 04 February, 2009. Prices dropped as the weekly inventory report by the Energy department showed that crude inventories rose more than expected in the last week.
On Wednesday, crude-oil futures for light sweet crude for March delivery closed at $40.32/barrel (lower by $0.46 or 1.1%) on the New York Mercantile Exchange. Earlier during the day, it touched a high of $41.92. But while dropping, it touched a low of $39.74. Last week, crude prices ended lower by 10%. In January, 2009, crude shed 14%.
Prices reached a high of $147 on 11 July but have dropped almost 70% since then. Year to date, in 2009, crude prices are lower by 9.6%. On a yearly basis, crude prices are lower by 55%.
The EIA reported today that crude inventories rose for a sixth straight week to 346.1 million barrels last week, the highest level since July 2007. Meanwhile, U.S. refineries operated at 83.5% of their operable capacity last week, up from the previous week's 82.5%.
The EIA also reported gasoline inventories rose by 300,000 barrels while distillate fuel, which includes diesel and heating oil, fell by 1.4 million barrels.
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.
Against this background, March reformulated gasoline rose 4.4% to $1.2184 a gallon and March heating oil rose 0.2% to $1.327 a gallon.
March natural-gas futures rose 1.9% to $4.597 per million British thermal units.
At the MCX, crude oil for February delivery closed at Rs 2,013/barrel, higher by Rs 38 (1.9%) against previous day's close. Natural gas for February delivery closed at Rs 227.6/mmbtu, higher by Rs 10.1/mmbtu (4.6%).
Torrent Power pledges shares
Torrent Power today said one of its promoter, Torrent Pvt Ltd, has pledged 11.07 per cent stake of the company with lenders.
Torrent Pvt Ltd has pledged 5.22 crore shares, representing 11.07 per cent stake in the company, the company said in a filing to the Bombay Stock Exchange.
As on December 31, 2008, Torrent Pvt Ltd had 249.32 crore shares, representing 52.77 per cent stake of the company.
The disclosure of pledged shares by Torrent Power comes after market regulator Sebi asking promoters of the listed companies to disclose the amount of shares pledged with lenders.
The regulator's announcement comes in the wake of the Satyam scam, wherein promoter Ramalinga Raju had pledged nearly all his shares whose prices he had inflated by falsifying profits.
Shares of Torrent Power settled at Rs 71.20, down 0.84 per cent on the BSE.
Canara Bank
We recommend a sell in Canara Bank from a short-term trading perspective. It is apparent from the charts of Canara Bank that it was on a medium-term up trend from its October low of Rs 136 to January peak of Rs 223.
However, in mid January, the stock began to loose its bullish momentum and reversed direction. On January 15, the stock tumbled by 8 per cent following selling pressure. This selling pressure continued and on January 23, the stock dived 14 per cent, accompanied with heavy volume. This decline conclusively penetrated the 21- and 50-day moving averages.
The stock is currently trading well below these averages. The daily relative strength index is falling in the neutral region towards the bearish zone. Moreover, moving average convergence and divergence has entered the negative territory. Our short-term outlook is bearish for the stock. We expect the stock to decline until it hits our price target of Rs 160 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 187.
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