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Monday, February 16, 2009
BSE Bulk Deals to Watch - Feb 16 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
16/2/2009 526955 ABL BIOTECHN HEMANT JAGDISH ASHAR B 93499 23.40
16/2/2009 500077 CABLE CORP I MATTERHORN ADVISORY SINGAPORE PTE LTD B 3300000 13.05
16/2/2009 500077 CABLE CORP I GRANT TRADING AND SERVICES PVT LTD S 3300000 13.05
16/2/2009 532696 EDUCOMP SOLN OPG SECURITIES P LTD B 96214 2087.08
16/2/2009 532696 EDUCOMP SOLN OPG SECURITIES P LTD S 96214 2088.46
16/2/2009 531137 GEMSTONE INV NAINESH HIMAT JATANIA B 20000 23.80
16/2/2009 531137 GEMSTONE INV RAMESH G GOKANI S 22750 23.70
16/2/2009 532081 K SERA SERA BASMATI SECURITIES PVT LTD B 376555 22.04
16/2/2009 531602 KOFF BR PICT OM SECURITIES B 297092 3.57
16/2/2009 532494 MICRO TECHN PR VYAPAAR PRIVATE LIMITED B 164187 62.78
16/2/2009 532494 MICRO TECHN GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD S 160352 62.06
16/2/2009 522296 SS FORG ENG. PUNEETVATS B 50000 11.39
16/2/2009 500800 TATA TEA LTD FIDELITY FUNDS MAURITIUS LIMITED S 450000 547.50
16/2/2009 531917 TWINSTA SO E KRUPA SANJAY SONI B 100000 2.99
16/2/2009 531917 TWINSTA SO E JUHI DINESHCHANDRA RASTOGI S 200000 3.00
16/2/2009 531249 WELL PACK PA VISHESH.SHAHRA B 50000 63.80
NSE Bulk Deal Watch - Feb 16 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
16-FEB-2009,BINDALAGRO,Oswal Chem & Fert Ltd.,OSWAL AGRO MILLS LIMITED,BUY,1750000,13.14,-
16-FEB-2009,BINDALAGRO,Oswal Chem & Fert Ltd.,P M AIR PRODUCTS PRIVATE LIMITED,BUY,250000,13.17,-
16-FEB-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,187302,2094.16,-
16-FEB-2009,HDIL,Housing Development and I,TOTAL SECURITIES LIMITED,BUY,1378479,86.01,-
16-FEB-2009,KALINDEE,Kalindee Rail Nirman (Eng,MANSUKH SECURITIES & FINANCE LTD,BUY,57081,130.37,-
16-FEB-2009,MICROTECH,Micro Technologies (India,PR VYAPAAR PRIVATE LIMITED,BUY,170813,62.90,-
16-FEB-2009,TIDEWATER,Tide Water Oil Co. (India,DECENT FINANCIAL SERVICES PVT LTD,BUY,13006,3123.09,-
16-FEB-2009,TIDEWATER,Tide Water Oil Co. (India,VSB INVESTMENTS P LTD,BUY,9500,3190.79,-
16-FEB-2009,BINDALAGRO,Oswal Chem & Fert Ltd.,OSWAL AGRO MILLS LIMITED,SELL,250000,13.17,-
16-FEB-2009,BINDALAGRO,Oswal Chem & Fert Ltd.,P M AIR PRODUCTS PRIVATE LIMITED,SELL,1750000,13.14,-
16-FEB-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,187302,2095.31,-
16-FEB-2009,HDIL,Housing Development and I,TOTAL SECURITIES LIMITED,SELL,1378479,86.05,-
16-FEB-2009,KALINDEE,Kalindee Rail Nirman (Eng,MANSUKH SECURITIES & FINANCE LTD,SELL,57081,130.38,-
16-FEB-2009,MAHLIFE,Mahindra Lifespace DevLtd,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,207752,135.80,-
16-FEB-2009,MICROTECH,Micro Technologies (India,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,165131,62.05,-
16-FEB-2009,MICROTECH,Micro Technologies (India,PR VYAPAAR PRIVATE LIMITED,SELL,10000,64.37,-
16-FEB-2009,TATATEA,Tata Tea Ltd,FID FUNDS MAURITIUS LIMITED ,SELL,464724,547.51,-
16-FEB-2009,TIDEWATER,Tide Water Oil Co. (India,ARION COMMERCIAL PVT LTD,SELL,10609,3100.00,-
16-FEB-2009,TIDEWATER,Tide Water Oil Co. (India,DECENT FINANCIAL SERVICES PVT LTD,SELL,9500,3190.79,-
Post Session Commentary - Feb 16 2009
Indian market today ended sharply lower after interim budget failed to accomplish investor’s expectations regarding stimulus plan for sectors such as autos and construction. Interim budget 2009-10 disappointed market sentiments that led the huge selling pressure throughout of trading session. Weak cues from the global markets also weighed on the sentiments. Both, NSE Nifty and BSE Sensex nosedived more than 3%.
The domestic market today opened on weak note tracking feeble cues from other Asian markets. Asian stocks fell after a government report showed that Japan’s gross domestic product slumped 12.7% in the fourth quarter. Japan’s economy shrank the most since 1974. Negative sentiment was also fueled by the lower closing of the US stock market on Friday on the back of selling pressure emerged among the financials. The Dow Jones industrial average once again closed below the 8000 mark at its lowest close since last November. Further, benchmark indices continued to extend their losses on negative sentiments led by the announcement that the export rate dropped to 17.1% during first nine months of current fiscal. Market lost further ground after Pranab Mukherjee, holding the charge of Finance Ministry, presented the budget. Market slipped sharply lower during final trading on investors’ nervousness on the concerns of weakening economy and uncertainty for the execution of expectations of stimulus from the interim budget. BSE Sensex ended around 9,300 mark and NSE Nifty closed below 2,850 level. From the sectoral front, all indices ended in red. Besides, Metal, Capital Goods, Bank, Reality, Oil & Gas, Power and PSU stocks witnessed most of the selling pressure from these baskets. Midcap and Smallcap stocks also remained under pressure during the trading session.
Among the Sensex pack 29 stocks ended in red territory and 1 in green. The market breadth indicating the overall health of the market remained weak as 1598 stocks closed in red while 776 stocks closed in green and 108 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 329.29 points at 9,305.45 and NSE Nifty ended down by 99.85 points at 2,848.50. Broader market indices were in red as BSE Mid Caps and Small Caps ended with losses of 88.20 points and 71.44 points at 2,924.75 and 3,324.14 respectively. The BSE Sensex touched intraday high of 9,637.04 and intraday low of 9,279.10.
Losers from the BSE Sensex pack are JP Associates (7.88%), Reliance Infra (6.35%), ICICI Bank (5.79%), RCom (45.78%), Tata Steel (5.20%), Reliance (5.17%), L&T Ltd (4.96%), SBI (4.86%), Sterlite Industries (4.70%), BHEL (4.47%) and Wipro Ltd (3.62%).
Only gainer from the BSE Sensex pack is ITC Ltd (0.75%).
The government in its interim budget gives importance to infrastructure investment. The investments in Infrastructure to be raised to 9% of GDP by 2014. However, 54 infra projects under PPP projects were given in-principle or final approval with an investment of Rs 67,700 crore. In line with this, the budgetary support increased for Ministries of Rural Development as well as Road Transport & Highway, Power, Railways, Industrial Policy & Promotion and IT. Bharat Nirman to get Rs 4900 crore and JNNURM gets Rs 11842 crore. In addition to this, the India Infrastructure Finance Company will raise Rs 10,000 crore from market by end of March 2009. Along with this, The India Infrastructure Finance Company will raise Rs 30,000 crore from market in next fiscal year. Adding to this, the rural infrastructure development scheme to be expanded through suitable allocations. The spending in FY 10 seen at 9.53 lakh crore. The Fiscal deficit for FY 09 at 6% of GDP.
The budget also gives support to agricultural sector. The agriculture credit has been increased by three fold to Rs 250,000 crore. Along with this, the fertiliser subsidy increased by Rs 44,863 crore from about Rs 14,000 crore (Rs 140 billion) during 2008-09. The annual rate of growth in agriculture was 3.7%. The production of food grain increased by 10 mn tonnes each year to all time high of 230 mn tonnes in 2007-08. The minimum support price for wheat increased to Rs 1,080 per quintal from Rs 630.
On the global markets front, the Asian markets ended in down as Japan’s recession get worst since 1974. Japan''s fourth quarter GDP numbers were a sobering reminder of the toll on Asia''s export-driven economies. The world''s second-biggest economy shrank 3.3% from the previous quarter, or at an annual rate of 12.7%. Hang Seng, Nikkei 225, Straits Times and Seoul Composite index ended down by 98.79, 29.23, 22.33 and 16.97 points at 4,373.44, 7,750.17, 1,683.31 and 1,175.47 respectively.
European markets which opened after the Indian market are also trading down. FTSE 100 is trading lower by 31.09 points at 4,158.5 and the DAX index is trading down by 39.95 points at 4,373.44.
The BSE Metal stocks under performed the benchmark indices as ended down by (4.75%) or 251.07 points at 5,031.02. Main losers are JSW Steel (7.07%), Jindal Steel (6.79%), Gujarat NRE C (6.49%), Welspan Guajrat SR (6.46%), Nalco (6.29%) and Tata Steel (5.20%).
The BSE Reality index ended lower by (4.58%) or 72.99 points to close at 1,519.37 in absence of any Ansal Infra (6.28%), Housing Dev (6.22%), Unitech Ltd (5.34%) and Mahindra Life (3.16%) ended in negative territory.
The BSE Bank index ended down by (4.58%) or 230.14 points at 4,794.78 after acting Finance Minister Pranab Mukherjee proposed an increase in government borrowing, sending bond yields higher. Main losers are ICICI Bank (5.79%), Bank of India (5.40%), Union Bank (5.21%), IDBI Bank (5.20%) and SBI (4.86%).
The BSE Capital Goods index faced heavy selling pressure and closed with decrease of (4.55%) or 297.94 points at 6,249.48. Scrips that lost are Gammon Indi (8.58%), Everest Kanto (5.78%), ABB Ltd (5.48%), Alstom Proje (5.31%), Crompton Greaves (5.15%) and Siemens Ltd (4.98%).
The BSE Oil & Gas index dropped by (4.23%) or 276.90 points to close at 6,264.67. Aban Offshore (5.49%), Reliance (5.17%), Reliance Petroleum (5.05%), Reliance Natural Resources (5.03%) and Essar Oil Ltd (4.88%) ended in red.
The BSE Power index also ended lower by (3.95%) or 73.25 points at 1,779.53. Losers are Lanco Infra (7.23%), GVK Power (6.58%), Reliance Infra (6.35%), Neyveli LIG (5.90%), ABB Ltd (5.48%) and Reliance Power (5.18%).
Punjab National Bank closed down by 4.36%. The Bank will be raising Rs 500 crore as PNB Upper Tier II Bond Issue Series VII through private placement with an option to retain oversubscription. The proposed date of opening is February 18, 2009 and proposed date of closing is February 18, 2009.
Sensex sheds 3.4% as govt makes no changes in taxes in interim budget
Key benchmark indices slumped on sustained unwinding in index pivotals following disappointment from the interim general budget for 2009-2010. The BSE 30-share Sensex lost 329.29 points, or 3.42%. Weak global markets also weighed on the domestic bourses.
After opening on a weak note taking cue from weak overseas markets, the domestic bourses lost further ground as acting Finance Minister Pranab Mukherjee began outlining achievements of the Congress-led UPA government when he began his interim budget speech at 11:00 IST. The market extended losses later as the budged disappointed the stock markets.
There were no sector-specific tax sops for the industry hit by the global economic slowdown in the interim budget for 2009-2010 unveiled by acting Finance Minister Pranab Mukherjee today, 16 February 2009. No changes were made in direct or indirect taxes. The stock market was expecting government to offer tax sops and sector-specific stimulus package for the economy in the interim budget.
Mukherjee who is currently holding the charge of Finance Ministry, said the United Progressive Alliance government had succeeded in implementing the promises outlined in the Common Minimum Programme (CMP). The GDP grew from 7.5% in 2004-05 to 9.7% in 06-07 and clocked 9% growth in 2007-08. Per capita income increased 7.4% per annum during the UPA government's tenure. The government relaxed Fiscal Responsibility Budget Management (FRBM) targets to counter global economic slowdown.
The government has extended interest rate subsidy scheme on exports for some sectors till 30 September 2009 from 31 March 2009. The government will provide interest rate subsidy to farmers in 2009-2010.
The fiscal deficit is estimated at 6% GDP in 2008-09. The revenue deficit is seen at 4.4% of GDP in 2008-09. The government spending will rise 6% to 9.53 trillion rupees in the year starting 1 April 2009. That will result in a budget gap of 5.5% of gross domestic product by 31 March 2010, compared with a 3% target. The interim budget estimates include initiatives for the first four months of the fiscal year 2009-2010, as well as spending and revenue estimates for the full year. These figures will be revised when the new government announces its budget after assuming office in May 2009.
European markets were subdued today, 16 February 2009 amid disappointment over the lack of coordinated action from the weekend G7 meeting, grim economic data from Japan and continued uncertainty about bank rescue plans. Key benchmark indices in UK, Germany and France were down by between 0.54% and 0.75%.
Most Asia-pacific markets were trading lower today, 16 February 2009, after data showed Japan's economy shrank at an annual 12.7% last quarter, the most since the 1974 oil shock, as recessions in the US and Europe triggered a record drop in exports. Key benchmark indices in Japan, Hong Kong, South Korea, Taiwan and Singapore were down by between 0.03% and 1.42%. However, China's Shanghai Composite index rose 2.96%.
US markets ended lower on Friday, 13 February 2009 as persistent worries about the banking sector tempered news the Obama administration was set to announce on Wednesday, 18 February 2009, a plan to stem home foreclosures. US markets will be closed today, 16 February 2009 for President's Day holiday.
The Dow Jones industrial average fell 82.35 points, or 1.04%, to 7,850.41, the Standard & Poor`s 500 index slipped 8.35 points, or 1%, to 826.84, and the Nasdaq Composite index dipped 7.35 points, or 0.48% to 1,534.36.
US President Barack Obama would sign into law the American Economic Recovery and Reinvestment Act in Denver on Tuesday, 17 February 2009. The bill, popular as economic stimulus package, was passed by the US Congress on Friday, 13 February 2009 after weeks of intense deliberations. The bill makes available to the Obama Administration $789 billion to revive and recover the US economy by funding projects, offering bailout packages to sinking companies and making investments in infrastructure projects.
Meanwhile, the Group of Seven finance chiefs vowed to tackle a "severe" economic downturn that will persist for most of 2009 without spelling out new steps to do so. The G-7's finance ministers and central bankers said in a statement released after talks in Rome on Saturday, 14 February 2009 that they were working to restore confidence in markets and revive the world economy. They predicted the full effect of individual rescue packages will "build over time."
The BSE 30-share Sensex lost 329.29 points, or 3.42%, to 9,305.45 . The Sensex opened 2.3 points higher at 9,637.04, also its day's high. At the day's low of 9,279.10, the Sensex lost 355.64 points in late trade.
The S&P CNX Nifty dropped 99.85 points, or 3.39%, to 2,848.50. Nifty February 2009 futures were at 2831.05, at a discount of 17.45 points as compared to the spot closing.
As per the provisional data released by the stock exchanges after trading hours, foreign funds today, 16 February 2009, sold shares worth a net Rs 45.33 crore. Domestic funds bought shares worth a net Rs 189.52 crore.
The Sensex had jumped 333.88 points or 3.59% to 9,634.74 in the week ended 13 February 2009 in a pre-budget rally on expectations the forthcoming interim budget will contain fiscal incentives to revive sagging economy.
The barometer index BSE Sensex is down 341.86 points or 3.54% in the calendar 2009 from its close of 9,647.31 on 31 December 2008.
The market breadth, indicating the overall health of the market, was weak on BSE with 1606 shares declining as compared to 781 that advanced. A total of 103 shares remained unchanged. The market breadth was strong in opening trade.
The BSE Mid-cap index lost 2.93% to 2,924.75 and the BSE Small-cap index fell 2.10% to 3,324.14. Both these indices outperformed the Sensex.
BSE clocked a turnover of Rs 2894 crore as compared to Rs 2,908.21 crore on Friday, 13 February 2009. Turnover in NSE's futures & options (F&O) segment surged to Rs 44,914.39 crore from Rs 31,772.99 crore on Friday, 13 February 2009.
All sectoral indices on BSE edged lower. The BSE HealthCare index (down 1.95%), the BSE Auto index (down 1.04%), the BSE FMCG index (down 0.15%), the BSE IT index (down 2.64%), the BSE PSU index (down 3%), BSE Teck index (down 2.83%), BSE Consumer Durables index (down 1.56%), outperformed the Sensex.
The BSE Oil & Gas index (down 4.23%), BSE Metal index (down 4.75%), BSE Bankex (down 4.58%), BSE Realty index (down 4.58%), BSE Capital Goods index (down 4.55%), the BSE Power index (down 3.95%), underperformed the Sensex.
ITC was the lone gainer from the 30-member Sensex pack. India's largest cigarette maker by sales gained 0.59% to Rs 180.10 on defensive buying.
ONGC (down 2.77%), HDFC (down 2.76%), and ACC (down 2.68%), edged lower from the Sensex pack.
Infrastructure shares fell in the absence of any major sops for the sector in the interim budget. Jaiprakash Associates (down 7.95%), Bhel (down 4.55%), Larsen & Toubro (down 5.36%), Lanco Infratech (down 8.40%), and GVK Power Infrastructure (down 6.35%), slipped.
India's largest private sector power generation firm by sales Reliance Infrastructure tumbled 6.29% to Rs 533.50 after the company said AAA Project Ventures, a promoter of the company, has pledged more than 3.72 crore shares or 16.35% stake. It was the top loser from the Sensex pack. AAA Project Ventures held 36.66% stake in the company as on 31 December 2008, while the total promoters shareholding is 37.33%. The company made this announcement during trading hours today, 16 February 2009.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) fell 5.40% to Rs 1315.90 on profit booking as the government did not re-introduce an anticipated seven-year income-tax holiday for natural gas producers in the interim budget. The stock retraced sharply from day's high of Rs 1395
Petroleum Minister, Murli Deora, hinted some days back that the government may consider granting seven-year tax holiday for natural gas producers in an attempt to make the next round of Nelp (New Exploration and Licensing Policy) bidding attractive. The finance ministry had withdrawn the tax holiday last year.
India's second largest cellular services provider by sales Reliance Communication (RCom) slumped 5.89% to Rs 170.95 after the company said AAA Communication, a promoter, has pledged more than 27.23 crore shares or 13.19% stake. AAA Communication held 63.38% stake in the company as on 31 December 2008. The company made this announcement during trading hours today, 16 February 2009.
Auto stocks declined after a firm start as the government did not announce any sops in the interim budget to revive demand. India's top truck maker by sales Tata Motors fell 1.99% to Rs 135.10. The stock retraced from day's high of Rs 142.80 mirroring a 1.83% rise in ADR on Friday, 13 February 2009.
India's top tractor maker by sales Mahindra & Mahindra lost 2.48% to Rs 313 after the company said its promoters have pledged more than 2.09 crore or 8.09% stake in the company. The company made this announcement during trading hours today, 16 February 2009.
Maruti Suzuki (down 2.18%), Hindustan Motors (down 3.85%), and Bajaj Auto (down 2.22%) slipped.
Auto stocks had surged in the past few days on budget hopes. The Auto index jumped 6.7% to 2612.22 on 13 February 2009, from 2447.68 on 6 February 2009.
Banking shares extended early fall on weak sentiment for financial sector stocks globally. The new US bank rescue plan that would potentially cost $2 trillion was greeted unceremoniously by investors last week, frustrated by the lack of detail, especially with regard to how the banks' illiquid assets will be valued.
India's second largest private sector bank by net profit HDFC Bank lost 3.27% as its ADR slipped 2.5% on Friday, 13 February 2009. India's largest private sector bank by net profit ICICI Bank declined 5.10% on a 1.85% slide in its ADR on Friday, 13 February 2009. India's largest bank in terms of assets and branch network State Bank of India fell 5.05%.
Metal stocks declined as there was no changes in import duty in the interim budget. Tata Steel (down 5.49%), Sterlite Industries (down 4.54%), National Aluminium Company (down 7.23%), Sail (down 4.80%), Hindalco (down 3.28%), and Sesa Goa (down 4.87%), slipped.
A section of the market was expecting increase in import duties on metals to protect the domestic industry from cheap imports.
Realty shares overturned in the absence of any tax sops for the housing sector in interim budget. India's largest real estate firm by market capitalisation DLF lost 2.55% to Rs 156.50, off day's high of Rs 167.70.
Parsvnath Developers (down 2.60%), Omaxe (down 3.46%), Indiabulls Real Estate (down 10.31%), and HDIL (down 6.45%), slipped after a strong start.
India's largest power generation company by market capitalisation, NTPC fell 2.79% to Rs 177.80. The company today entered in to an MOU with Nuclear Power Corporation of India (NPCIL) and formed a joint venture company for setting up Nuclear Power Projects. The proposed joint venture company will be a subsidiary of NPCIL in which NPCIL shall hold 51% equity and the balance 49% will be held by NTPC.
IT pivotals slipped amid fears a weak global economy would cut the amount firms spent on technology offset weak rupee.
India's third largest software services exporter, Wipro fell 4.20% mirroring its ADR which slipped 1.02% on Friday, 13 February 2009. India's second largest software services exporter Infosys Technologies shed 2.36% as its ADR declined 2.55% on Friday, 13 February 2009.
India's largest software services exporter by sales TCS slipped 1.82% and India's fifth largest IT exporter by sales HCL Technologies declined 2.80%.
However Satyam Computer Service spurted 6.05% to Rs 49.10 after the stock market regulator relaxed takeover rules in certain conditions, which should make it easier for fraud-hit Satyam Computer to find a buyer. The announcement was made after market hours on Friday, 13 February 2009. Satyam ADR jumped 11.70% on Friday, 13 February 2009.
IT firms derive a lion's share of revenue from exports. The rupee declined to 48.74 against dollar from Friday's close of 48.67. A weaker rupee augurs well for the sector as IT firms earn most of their revenues from exports.
Also some anticipated tax sops for the IT sector were not announced in the interim general budget. The information technology (IT) and information technology enabled services (ITeS) industry had anticipated the interim budget will extend the Software Technology Park of India (STPI) scheme beyond 2010. But there was no such announcement
India's largest pharma company by market capitalisation Sun Pharmaceutical shed 1.45% to Rs 1052 despite reports the company is on the lookout for a possible acquisition overseas as well as in India.
Shares of domestic tyre makers fell on reports the government has started issuing licences to allow import of truck and bus radial tyres. CEAT (down 1.47%), Goodyear India (down 3.05%), Apollo Tyres (down 1.69%), JK Tyre & Industries (down 2.48%) and MRF (down 3.55%), edged lower.
According to reports, foreign tyre makers such as Bridgestone and Pirelli had sought licences from the government to allow them to import radial tyres. This will put the domestic players into more competition and the domestic tyre makers will be forced to reduce the prices of tyres to face the tough competition.
Sugar shares slipped on profit booking after a solid recent surge on the back of rising commodity prices. Shree Renuka Sugars (down 6.95%), Bajaj Hindustan (down 3.62%), and Balrampur Chini Mills (down 7.20%), slipped. Shree Renuka Sugars had jumped 18.25% to Rs 90.70 in a week to 13 February 2009.
Shares of companies associated with Indian Railways declined on profit booking, after surging earlier on hopes of favorable announcements in the interim rail budget on 13 February 2009.
Container Corporation of India (down 1.42%), BEML (down 2.94%), Titagarh Wagons (down 11.25%), Kalindee Rail Nirman Engineers (down 12.64%), Texmaco (down 12.67%), and Kernex Microsystems (down 9.97%) declined.
State-run oil marketing companies declined after cutting jet fuel price by an average of Rs 1,206 across cities effective Sunday midnight.
Among the state-run oil marketing companies HPCL (down 3.58%), BPCL (down 2.96%), and IOC (down 1.12%), declined.
Reliance Industries was the top traded counter on BSE with turnover of Rs 240 crore followed by Educomp Solutions (Rs 207.60 crore), DLF (Rs 145.70 crore), Reliance Infrastructure (Rs 119.50 crore) and Reliance Capital (Rs 118.20 crore).
Unitech led the volume chart on BSE with volumes of 2.38 crore shares followed by Satyam Computer Services (2.01 crore shares), Cals Refineries (1.46 crore shares), DLF (91.95 lakh shares) and HDIL (83.77 lakh shares).
MRO TEK jumped 6.26% to Rs 23.75 after the company said its board will meet on 25 February 2009 to consider buyback of equity shares. The company made the announcement during trading hours today, 16 February 2009.
Bartronics India jumped 8.92% to Rs 85.25 after the company said it secured a project from the Municipal Corporation of Delhi for setting up 2000 kiosks. The company announced the new order win on Saturday, 14 February 2009.
Jain Irrigation Systems fell 1.58% to Rs 369.85 despite signing a pact with National Bank for Agriculture and Rural Development for village development programme in Maharashtra. The company made this announcement on Saturday, 14 February 2009.
Pre Session Commentary - Feb 16 2009
Today domestic markets are likely to open positive as there are huge expectations of tax sops in the interim budget to be presented today. After an early gain in the previous week end, today once again one could anticipate a good and firm trend. Sectors like Bankex, Realty and Auto could be on the lime light due to expectations of further interest rate cut and some special package for the other two. The trend during the day’s session is likely to sustain its firmness on domestic triggers and would remain shield against other Asian and European markets’ cues.
On Friday, the markets opened with a positive gap as the other Asian markets had opened in green. The sentiments across the broader markets were strong as the interim budget of Railways brought some cheer. For the year FY09 the railways showed a cash surplus of Rs 90 billion. The rate cuts on passenger fares and opening of new routes were some cheers for the billion Indian citizens. The feel good factor ahead of the interim budget to be presented on Monday keeps the markets on firm trend. Sectors like Metal, CG, Realty, Power and Auto gained by phenomenal 2.80%, 2.48%, 2.29%, 2.28% and 2.24% respectively. Mid caps and Small caps gained 1.51% and 0.62% respectively. During the session we expect the markets to be trading with a firm trend.
The BSE Sensex closed up by 168.91 points at 9,634.74 and NSE Nifty ended with a gain of 55.30 points at 2,948.35. The BSE Mid Caps and Small Caps ended with gains of 44.84 points and 20.79 points at 3,012.95 and 3,395.58 respectively. The BSE Sensex touched intraday high of 9,695.59 and intraday low of 9,540.60.
On Friday, the US stock markets closed in red. There was lack of special news that could swing the markets and therefore investors traded choppy throughout the session to evade any risks. The $ 787 billion bail out package announced on the previous day had very little influenced the sentiments of investors. The financial sector lamented after a fall of 4.2% for the day and an over all 10.2% during the week. Further on Monday U.S. markets are closed in observance of Presidents Day. US light crude oil for March delivery gained by $3.53 to settle at $37.51 a barrel on the New York Mercantile Exchange. OPEC, supplier of more than 40% of the world’s oil, may decide to reduce crude production further when it meets in March if the price remains below $40 a barrel.
The Dow Jones Industrial Average (DJIA) dropped by 82.35 points to close at 7,850.41. The NASDAQ Composite (RIXF) index fell by 7.35 points to close at 1,534.36 and the S&P 500 (SPX) lost by 8.35 points to close at 826.84.
Indian ADRs ended mixed. In technology sector, Satyam ended up by 11.70%. Further, Wipro ended with decrease of 1.02% Infosys by 2.55% and Patni Computers closed down by 2.05%. In banking sector HDFC Bank and ICICI Bank lost 2.50% and 1.85% respectively. In telecommunication sector, MTNL and Tata Communication advanced by 1.71% and 1.91% respectively. However, Sterlite Industries remained unchanged.
Today major stock markets in Asia are trading mixed. Shanghai composite is higher by 30.62 points to 2,351.42, Japan''s Nikkei is low by 19.83 points at 7,759.57. Hang Seng lost 234.36 points at 13,320.31, South Korea''s Seoul Composite is low by 5.89 points at 1,186.55 and Singapore''s Strait Times is lower by 7.14 points to 1,698.50.
The FIIs on Friday stood as net sellers in equity and debt. Gross equity purchased stood at Rs 871.70 Crore and gross debt purchased stood at Rs 18 Crore, while the gross equity sold stood at Rs 1,037.40 Crore and gross debt sold stood at Rs 94.20 Crore. Therefore, the net investment of equity and debt reported were Rs (165.60) Crore and Rs (76.20) Crore respectively.
On Friday, the Indian rupee closed at 48.66/67, 0.39% stronger than its previous close of 48.85/86. The rupee appreciated as banks cut their long positions in dollar and the domestic markets gain helped it further.
On BSE, total number of shares traded were 30.53 Crore and total turnover stood at Rs 3,103.17 Crore. On NSE, total number of shares traded were 61.17 Crore and total turnover was Rs 82.27 Crore.
Top traded volumes on NSE Nifty – Unitech with 39529354 shares, Suzlon Energy with 16834204 shares, DLF with 12556129 shares, Reliance Comm with total volume traded 12010898 shares followed by SAIL with 9707423 shares.
On NSE Future and Options, total number of contracts traded in index futures was 604388 with a total turnover of Rs 8,261.22 Crore. Along with this total number of contracts traded in stock futures were 826798 with a total turnover of Rs 8,712.44 Crore. Total numbers of contracts for index options were 958057 with a total turnover of Rs. 14,027.10 Crore and total numbers of contracts for stock options were 68987 and notional turnover was Rs 772.23 Crore.
Today, Nifty would have a support at 2,975 and resistance at 3,033 and BSE Sensex has support at 9,722 and resistance at 9,882.
Market likely to open lower
The market may slip initially following overnight slump in the US markets and in the major Asian indices taking a sharp dip in morning trades may pull down the domestic indices in early trades.On the technical front, the Nifty could test higher levels at 3000 and may find support at 2900, while the Sensex may face resistance at 9750 and find support at 9500.
US indices fell on Friday with Dow Jones dropped 82 points at 7850, the Nasdaq declined 7 points to close at 1534.
Indian ADRs were largely mixed on the US bourses. Satyam jumped nearly 11.70%, VSNL, MTNL, Tata Motors and Rediff ended with modest gains. while Dr Reddy, HDFC bank, Infosys, Patni Computer, ICICI Bank and Wipro ended with loss of around 1-3%.
Crude oil prices in the US market edged higher, with the Nymex light crude oil for March 09 delivery rising by $3.53 to close at $37.51 per barrel. In the commodity segment, the Comex gold for April 09 series lost $7 to settle at $942.20 an ounce.
Market seen opening lower; interim budget eyed
Key benchmark indices are likely to open subdued as the SGX Nifty futures for February 2009 series fell 13.50 points in Singapore. Interim budget 2009-10 scheduled to be presented in the parliament today will set the tone for the market. Global cues were mixed.
The interim Budget, to be presented by External Affairs Minister Pranab Mukherjee who is currently holding the charge of Finance Ministry, is likely to announce some measures to reduce the impact of the global economic meltdown on the Indian economy. The government has so far announced two stimulus packages including tax cuts and the capital injections for banks.
Also there are expectations of further rate cuts by the central bank. Marketmen expect the RBI to cut policy rates further after the interim general budget. The Reserve Bank of India (RBI) announced on Thursday, 12 February 2009, it will continue to closely monitor the developments in the global and domestic financial markets and will take swift and effective action, as appropriate.
Asian markets were trading mixed today, 16 February 2009, after Japan's economy shrank at an annual 12.7 percent pace last quarter, the most since the 1974 oil shock, as recessions in the US and Europe triggered a record drop in exports. China's Shanghai Composite gained 2.03% or 47.16 points at 2,367.96, South Korea's Seoul Composite was up 0.22% or 2.6 points at 1,195.04, Taiwan's Taiwan Weighted added 0.12% or 5.32 points at 4,597.82. However, Hong Kong's Hang Seng slipped 0.79% or 106.98 points at 13,447.69, Japan's Nikkei was down 0.21% or 16.37 points at 7,763.03 and Singapore's Straits Times was flat at 1,705.22.
US markets ended mixed on Friday, 13 February 2009 as persistent worries about the banking sector tempered news the Obama administration was set to announce on Wednesday, 18 February 2009, a plan to stem home foreclosures. US markets will be closed today, 16 February 2009 for President's Day holiday.
The Dow Jones industrial average fell 27.63 points, or 0.35%, to 7,905.13. The Standard & Poor's 500 index shed 2.70 points, or 0.32%, to 832.49. The Nasdaq Composite index added 1.39 points, or 0.09%, to 1,543.10.
Meanwhile, US President Barack Obama would sign into law the American Economic Recovery and Reinvestment Act in Denver on Tuesday, 17 February 2009. The bill, popular as economic stimulus package, was passed by the US Congress on Friday, 13 February 2009 after weeks of intense deliberations. The bill makes available to the Obama Administration $789 billion to revive and recover the US economy by funding projects, offering bailout packages to sinking companies and making investments in infrastructure projects.
Back home, key benchmark indices advanced on Friday, 13 February 2009, buying in metal, realty and capital goods shares. The BSE 30-share Sensex rose 168.91 points or 1.78%, to 9,634.74 and the S&P CNX Nifty advanced 55.30 points or 1.91% to 2948.35.
According to provisional data on NSE, FIIs were net sellers worth Rs 13.15 crore while mutual funds bought shares worth Rs 216.37 crore on Friday, 13 February 2009.
Meanwhile, Lalu Prasad presenting the interim railway budget 2009- 10 in the parliament on Friday, 13 February 2009 said the Railways will invest Rs 2.3 lakh crore in the year ending March 2010. Indian Railways generated a cash surplus of Rs 90,000 crore in the last five years. The Railway Minister announced fare cut in AC and mail express trains by 2% while keeping freight rates unchanged.
Trading Calls - Feb 16 2009
Nifty (2948) Sup 2890 Res 2995
Buy BHEL (1467) SL 1452 Target 1502, 1512
Buy PTC (66) SL 64 Target 70, 71
Buy Torrent Power (74) SL 72 Target 78
Sell Dr Reddy’s (431) SL 436 Target 421, 419
Daily News Roundup - Feb 16 2009
- Reliance Communications adds ~5mn new subscribers in January 2009. (BS)
- NPCIL and NTPC signs an agreement to jointly produce nuclear power plants. (BS)
- Jet Airways cut international fares by 30%. (ET)
- PNB to raise Rs5bn through issuance of bonds, with February 18 as the proposed date of opening. (BS)
- M&M decides to hiveoff its defense business into two separate entities — Mahindra Land Systems and Mahindra Naval Systems. (BL)
- Reliance Infrastructure announces another round of buyback programme for equity shares for amount up to Rs7bn from shareholders. (BS)
- The interim Budget is likely to provide for Rs21.5bn of recapitalisation package for three public sector banks UCO Bank, Central Bank of India and Vijaya Bank. (ET)
- Diageo, United Spirits deal may get delayed. (BS)
- The Bombay HC rejects an application made by IDBI Bank and ICICI Bank seeking appointment of a court receiver to oversee the administration of Maytas Infra.
- Era Infra bags Rs675mn order from BHEL for constructionrelated works at Bellary power station. (BS)
- NTPC, NPCIL to invest Rs150bn in 8 years. (BL)
- JSW group to review the status of the delayed steel project in West Bengal after three months. (ET)
- PNB expects the central bank to further cut rates. (FE)
- Nu Tek India plans to acquire two companies, in Nigeria and the other with presence in the US for a total investment of about US$26mn. (BL)
- Bartronics bags Municipal Corporation of Delhi’s 'AapKe Dwar' project to set up and manage 2,000 kiosks in Delhi. (BS)
- Mahindra Land Systems to launch a mineprotected vehicle in early 2010 in partnership with UKbased defence manufacturer BAE Systems. (BL)
- NMDC is looking at forging partnerships for acquiring coal blocks within the country. (BL)
- Nabard signs MoU with Jain Irrigation for its ‘Village Development Plan’ and implementation of Natural Resource Management and Dry Land Agriculture. (BL)
- Reliance Retail in talks with large retailers to forge an alliance for its retail business. (ET)
- Jet Airways targets breakeven in the next one year.(Mint)
- Nitco Tiles plans to exit cement business. (ET)
- Merrill Lynch to shift majority of its Satyam contracts with TCS. (ET)
- NTPC plans to bid for imported fuelbased UMPPs. (ET)
- UB Group may offload stake in Aventis Pharma.(Mint)
- Essar Oil is weighing the option of utilizing capacity of HPCL’s MundraDelhi pipeline for transporting oil products from its refinery in Vadinar, Gujarat.(BL)
- Telenor seeks to raise Unitech Wireless stake.(DNA)
- BEML seeks Dutch ally for dredging.(DNA)
- Omaxe in talks with 14 banks for debt restructuring. (BS)
- Arvind Ltd gets banks approval for rescheduling loan payments. (BS)
- Public sector oil companies cut ATF prices by 3.7%, the tenth reduction since September 2008.(FE)
- Relief for realty, auto sectors likely in interim Budget.(FE)
- Tax holiday for export, IT units may continue.(BL)
- SEBI to relax provision of Substantial Acquisition of Shares & Takeover Regulations, which outline the procedure to be followed when an outsider seeks to acquire control of a listed company. (DNA)
- SEBI to impose a penalty of Rs10mn on companies not filing disclosure. (BS)
- Agricultural Ministry may hike statutory minimum price for sugarcane to Rs107.6 per quintal. (BS)
- India gets US$1.36bn of FDI in December 2008. (BS)
- Railways to invest Rs2300bn during the 11th Plan period to improve its rolling stock. (FE)
- Railways expect revenues of Rs953.06 billion in FY 10. (FE)
- India likely to miss the FDI target of US$35bn for the current fiscal due. (FE)
- The government to finalize new norms for MNC drug prices. (ET)
- The government is likely to hike expenditure on flagship programmes, rural development and housing. (ET)
- Finance Ministry to lower service tax on banks foreign exchange turnover. (BS)
- Government to mark outlay for power fund; ministry to get 35% more allocation.(Mint)
- Defence forces would release 15MHhz of radio frequency for 2G and 3G mobile services soon after the agreement between the ministries of defence and telecom is signed.(TOI)
- The government mulling a commission for media guidelines. (BS)
Do what you can afford!
A budget tells us what we can't afford, but it doesn't keep us from buying it.
It’s a Monday morning when hopes run high. The government will present an interim budget today and use every opportunity to send a clear message to the voters.
Whether it can literally afford to do it or not is a different question, for which there are no answers now.
A bias may be there towards job protection and job generation. While indirect tax rates may be changed there is less hope of tinkering with direct tax rates. Import duty hike in steel and excise cuts in cement and auto are on the wish list.
The market will salute a cut in STT (Securities Transaction Tax) if it happens.
The market is expected to open weak on global cues. Depending on the announcements made by the acting finance minister Pranab Mukherjee, wild swings could be seen in specific counters. Banks and Real Estate may be in focus. Moreover, expectations are the RBI may cut rates later this week.
Asian markets fell as Japan’s gross domestic product slumped 12.7% in Q4, the most since 1974. The US markets are closed today for President’s Day. On Friday, US stocks were lower even as the House of Representatives approved the US$787 bn economic stimulus plan. President Obama is expected to sign the debated bill into law today. The Dow Jones fell 82 points, or about 1% to 7850.41, S & P index lost 8 points to 826.84,while Nasdaq composite lost 7 points, or about 0.5% to 1534.36.
The slowdown has been particularly sharp for the manufacturing sector while services have held up quite well. Going forward, the services sector could potentially see slower growth, due to the decline in overall business prospects, according to the CII report released here today.
The CII State of the Economy states that recent data on specific service sector activities gives a mixed picture - while there has been a sharp drop in indicators such as tourist arrivals or air freight and passenger movements, railway traffic and cellular subscriber growth have been holding up. In banking, deposit and credit growth have begun to slow down, though only moderately. Given that the service sector accounts for over 50% of GDP, the trends in this sector will have important implications for growth in the coming year.
In the interim railway Budget, the Railway Minister has focused on building capacity for the future by making the required investments in infrastructure and freight corridor projects. According to Mr. Chandrajit Banerjee, DG, CII, freight corridors, containers and improved passenger amenities that were announced in the budget will go a long way in making India's railway network more modern and efficient. Manufacturing sector experiencing a serious downturn: CII
Among other news reported in the media…
The World Bank will review the eight-year ban imposed on Satyam Computers. Meanwhile, Satyam Computer has initiated preliminary discussion with Life Insurance Corporation of India on funding.
The Andhra Pradesh HC stayed awarding of a Rs1bn road project to Maytas Infra.
Omaxe is in talks with 14 banks for debt restructuring.
Jet Airways could see some action as it has cut international fares by 30%. Public sector oil companies have reportedly cut ATF prices by 3.7%, the tenth reduction since September 2008.
PNB could gain as it is set to raise Rs5bn through issuance of bonds, with February 18 as the proposed date of opening.
Markets ended with smart gains on Friday. The NSE Nifty index which closed below the 2900 mark on Thursday, managed to re-conquer it on the last trading day of the week. The bulls charged forward with support from the global markets and buying witnessed in the heavyweights like Reliance Industries, ICICI Bank, L&T and SBI. Finally, The Sensex rose 151 points to close at 9,617 and the Nifty advanced 55 points to close at 2,948.
Among the 30-components of Sensex, 27 stocks ended in the positive terrain and only 3 stocks ended in the red. The major gainers in the Sensex were M&M, RCom, Tata Steel, ACC, BHEL and Reliance Infra.
On the other hand, major losers were Sun Pharma, Infosys and Ranbaxy.
Shares of Varun Shipping surged by over 3.5% to Rs47 after 7% of equity shares were traded in a single deal. The scrip touched an intra-day high of Rs50.6 and a low of Rs46 and recorded volumes of over 4,00,000 shares on BSE.
DLF gained by 2.7% to Rs160. According to reports, the company announced that it has withdrawn from Rs50bn township project near Kolkata. The scrip touched an intra-day high of Rs162 and a low of Rs155 and recorded volumes of over 47,00,000 shares on BSE.
Shares of ONGC gained by 1.2% to Rs703 after reports stated that the company may sell 15% to 20% in a planned petrochemical project in India’s Gujarat state to Gail. The scrip touched an intra-day high of Rs714 and a low of Rs690 and recorded volumes of over 2,00,000 shares on BSE.
Shares of Reliance Infra surged by over 3.5% to Rs569 after the company announced a fresh program for buyback of shares of Rs7bn. The scrip touched an intra-day high of Rs579 and a low of Rs560 and recorded volumes of over 23,00,000 shares on BSE.
Shares of companies that derive a major chunk of their business from the Railways were in momentum on expectations of favourable announcements in the Interim Railway Budget.
Stone India (up 4.8%), Texmaco (up 11%),
However, the some of the railway stocks gave up their early post the announcement of the interim budget.
Kernex Micro (down 2.3%) Tita Garh Wagons (down 7%), BEML (down 1%) and Kaindee Rail (down 2.3%) were among the ones giving up gains.
The harp upswing on Friday was mainly on hopes of some goodies from the government as the vote-on-account is presented in Parliament on Monday. The US$789 billion stimulus compromise is set to pass and go on to President Obama for his signature. Incidentally, the US Market is closed on Monday for the Presidents Day holiday. So a lot of local factors will come into play for the Indian markets on Monday.
Bullion metals end mixed
Gold slips after three consecutive runs but silver rises
After surging more than 6% in the previous three sessions, gold prices went down on Friday, 13 February, 2009. Though there was no specific catalyst for the depressed price, substantial increase in price in the previous three days perhaps gave room to traders for some sell-off. Prices had rose to almost seven month high in the previous three sessions.
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 Friday, Comex Gold for February delivery fell $7 (0.7%) to close at $941.5 an ounce on the New York Mercantile Exchange. For the week, gold prices ended up by 3%. For January, 2009, gold had gained 3.9%. Year to date, gold prices are higher by 6.4%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (13%) since then.
On Friday, Comex silver futures for March delivery rose 11.5 cents (0.9%) to end at $13.625 an ounce. Year to date, silver has climbed 19.9% this year. For 2008, silver had lost 24%.
In the currency market on Friday, the dollar index ended lower by 0.1%.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Crude shoots up
Prices end higher by more than 10% after dropping for five straight days
Oil prices ended substantially higher on Friday, 13 February, 2009. Prices had ended lower in the previous five sessions. Earlier during the week, Energy Department had reported larger than expected build up in crude inventories for the last week.
On Friday, crude-oil futures for light sweet crude for March delivery closed at $37.51/barrel (higher by $3.53 or 10.4%) on the New York Mercantile Exchange. For the week, crude ended lower by 6.6%. Oil had shed 17% in the last five sessions.
Prices reached a high of $147 on 11 July, 2008 but have dropped almost 77% since then. Year to date, in 2009, crude prices are lower by 16%. On a yearly basis, crude prices are lower by 63%.
EIA had reported earlier during the week that crude inventories excluding those in the Strategic Petroleum Reserve gained 4.7 million barrels to 350.8 million barrels in the week ended 6 February, 2009. Inventories at Cushing, Oklahoma, the delivery point for futures traded on the New York Mercantile Exchange, rose to 34.9 million, the highest level on record.
As per the report, total products supplied over the last four-week period averaged 19.8 million barrels per day, down by 1.3% compared to the similar period last year. Meanwhile, U.S. refineries operated at 81.6% of their operable capacity last week, the lowest in four months. EIA had also reported that gasoline stockpiles fell by 2.6 million barrels while distillate fuels, which include diesel and heating oil, declined by 1 million barrels.
Recently, Paris based, IEA has reported that this year's global oil demand will fall by 1 million barrels a day, or 1.1%, from last year. If realized, it will be the biggest yearly drop since 1982. The IEA cited a worsening economic outlook across all regions as the reason for the weakness in oil demand.
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. OPEC agreed to reduce production by a record amount of 2.2 million barrels a day, starting from 1 January, 2009 adding to previous cuts of 2 million barrels. Overall, the reduction is equal to about 5% of the world's oil demand.
Against this background, March reformulated gasoline fell 4.1% to $1.2063 a gallon, and March heating oil dropped 1.6% to $1.30 a gallon.
March natural gas futures slid 0.6% to $4.452 per million British thermal units.
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