Monthly Technicals - March 2 2009
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Monday, March 02, 2009
India Votes 2009 - DP Poll
The Poll on DP has received more than 400 votes and the trend seems to be towards BJP with over 47% of the votes with Congress a close second at over 42% of the votes. The Khichidi parties are a pathetic third with 9% votes.
Vote now and again in the General Elections - Make your VOTE count!
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AIG posts 61.7 billion dollar loss
American International Group Inc posted a $61.7 billion fourth-quarter loss -- the biggest quarterly loss in corporate history -- after
reaching a revised rescue deal with the US government that wards off for now the prospect of crippling credit rating downgrades.
The massive quarterly loss, equal to $22.95 a share, was AIG's fifth in a row, bringing the total loss over that period to more than $100 billion.
The US Treasury and Federal Reserve said AIG had posed a systemic risk requiring government action to prevent its problems from damaging the entire financial system.
AIG, the recipient of $150 billion in taxpayer aid last year, will get access to an additional $30 billion under the government's revised plan announced on Monday.
It also got more lenient terms on existing financing and will be able to significantly pay down an outstanding credit facility in a swap that will give the government a preferred-share stake in two life insurance businesses.
AIG also announced plans to spin off part of its property-casualty business, to be renamed AIU Holdings.
The revamped rescue package is the third since last fall when the government stepped in to bail out AIG, once the world's biggest insurer by market value.
The Treasury and the Fed said that AIG, which has counterparties around the globe, was so important to the US economy and financial system that it had to be helped, and they held out the possibility more aid might be needed.
"This will take time and possibly further government support if markets do not stabilize and improve," they said in a statement.
via Reuters
Post Session Commentary - March 2 2009
Indian market extended its previous week’s losses to close with huge gap down on account of selling pressure witnessed across the board. Concerns of deteriorating economic conditions led stocks to extend fall by more than 3%. Weak cues from Asian stocks along with lower European markets also fueled the negative sentiments. In domestic arena, approval of RPL’s merger with RIL by with the swap ratio of 16:1, by the board of directors of RIL and RPL, failed to bring any relief. In the mean time, significant selling by FIIs also dragged the market lower.
The domestic market tumbled since initial bell mirroring weak cues from the markets all over the world. The US markets on Friday ended down with the S&P slides to a 12-year low backed by the fourth quarter GDP readings that showed the US economy shrunk at the sharpest pace since 1982. Further, benchmark indices continued to lose ground as extensive selling pressure dragged the stocks sharply lower. Meanwhile, India’s merchandise exports fell 16% in January over the same period a year earlier. Finally, market concluded its southward journey on extremely red territory. BSE Sensex ended around 8,600 mark and NSE Nifty closed below 2,700 level. From the sectoral front, most of the indices ended in red and among those, Bank, Metal, Oil & Gas, Capital Goods, Power and PSU stocks contributed to most of the downward trend. BSE Mid Cap and Small Cap stocks also witnessed huge selling pressure. However, Consumer Durable stocks were able to gain market favour 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 negative as 1636 stocks closed in red while 731 stocks closed in green and 88 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 284.53 points at 8,607.08 and NSE Nifty ended down by 89.05 points at 2,674.60. BSE Mid Caps and BSE Small Caps ended with losses of 57.31 points and 56.73 points at 2,700.98 and 3,049.28 respectively. The BSE Sensex touched intraday high of 8,762.88 and intraday low of 8,563.52.
Losers from the BSE Sensex pack are Reliance Infra (9.12%), Tata Steel (7.54%), ICICI Bank (7.28%), RCom (6.50%), JP Associates (5%), HDFC Bank (4.43%), L&T Ltd (4.40%), TCS Ltd (4.39%) and ONGC Ltd (3.92%).
Only gainer from the BSE Sensex pack is M&M Ltd (2.58%).
India’s merchandise exports fell 16% in January over the same period a year earlier, marking the fourth straight month of decline in merchandise exports, as recession in the US and EU markets continued to depress demand for its products. The exports in January were down 16% at $12.38bn while imports declined by 18% to $18.46bn. This has led to the trade gap of $6.08bn as against $7.85bn in the year-ago period.
The much-waited Lok Sabha elections schedule is announced today by the election commissioner. The General Elections are to be held between April 16 to June 1, 2009. The first phase will be held on April 16, 2009 and will cover 124 constituencies. Along with this, the phase two will be on April 23, 2009 and will cover 141 seats. The Phase three will be on April 30, 2009 and will cover 107 seats. The phase four and five will be held on May 7 and May 13, 2009 and will cover 85 and 86 seats respectively. The counting of votes will be on May 16, 2009.
On the global markets front the Asian markets which opened before the Indian market, ended in deep red. Sentiments remained weak on declines in Japanese wages and South Korean exports. Monthly wages in Japan fell 1.3% in January 2009 from a year earlier, after declining 0.8% in December 2008, the Labor Ministry said in Tokyo. South Korea''s overseas shipments decreased 17.1% in February 2009 from a year earlier following previous month''s record 33.8% fall, the government reported. Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended lower by 494.11, 288.27, 61.47 and 44.22 points at 12,317.46, 7,280.15, 1,533.40 and 1,018.81 respectively.
European markets which opened after the Indian market are trading lower. In London FTSE 100 is trading lower by 134.18 points at 3,695.91 and in Frankfurt the DAX index is trading down by 101.42 points at 3,742.32.
The BSE Bank index lost (4.86%) or 206.11 points at 4,033.99 on fears of rising defaults in a weakening economy. Main lossers are ICICI Bank (7.28%), Axis Bank (7.16%), Oriental Bank (6.08%), IDBI Bank (5.38%) and Canara Bank (5.17%).
The BSE Metal index ended down by (4.31%) or 202.15 points at 4,488.82 due to drop in global base metal prices on the London Metal Exchange. Losers are JSW Steel (8.69%), Welspan Gujarat SR (8.31%), Tata Steel (7.54%), Sesa Goa Ltd (5.88%) and Steel Authority (5.79%).
The BSE Oil & Gas index closed with decrease of (2.94%) or 178.14 points at 5,885.97 as crude oil for April delivery reversed its three day rally and prices fell by $0.46 to settle at $44.76 a barrel on the New York Mercantile Exchange. Scrips that lost are Aban Offshore (6.98%), Essar Oil Ltd (6.24%), Reliance Nat Res (4.37%), Cairn Ind (3.92%) and ONGC Ltd (3.92%).
The BSE Capital Goods index also tumbled (2.9%) or 171.06 points to close at 5,726.86. Punj Lloyd (9.04%), Reliance Industrial Infra (6.13%), Gammon Indi (5.54%), Suzlon Energy (5.06%) and Everest Kanto (4.58%) ended in red.
The BSE Power index ended lower by (2.83%) or 49.63 points to close at 1,702.12. Reliance Infra (9.12%), Suzlon Energy (5.06%), Power Grid (4.87%), GVK Power (4.74%) and GMR Infra (3.44%) ended in negative territory.
The BSE Consumer Durables stocks gained (0.15%) or 2.3 points to close at 1,544.97. Only gainer is Titan Ind (2.15%).
Reliance Industries fell 3.15% after the company set the swap ratio of 16:1 for merger of Reliance Petroleum slightly in favour of Reliance Petroleum.
Aurobindo Pharma dropped by 1.80% despite the company through its wholly owned subsidiary Aurobindo Pharma Australia Pty Ltd received it''s first approval from Therapeutic Goods Administration (TGA), Government of Australia for the registration of Auro-Lisinopril 5, Auro-Lisinopril 10 and Auro-Lisinopril 20 tablets containing Lisinopril (as dihydrate) 5mg, 10mg and 20mg.
Maruti Suzuki ended down by 0.30%. The company achieved its highest ever domestic and total sales in February 2009. The company also registered the highest ever export sales. The company in February 2009 sold 70,625 units in the domestic market up 19.1% over the corresponding period last year. The company in all sold 79,190 vehicles in February 2009; up 24.1% over the corresponding period last fiscal.
Losing streak extends
The market took a sharp dip in early trades and the downward spell continued unabated for the day. Sensex began the session with a negative gap of 129 points at 8763, however sudden spurt in selling, particularly in banking, metal, oil & gas and capital goods stocks dragged the index just above 8,600 level to the day’s low of 8564. However, the index pared some losses on selective buying in fast moving consumer durables (CD) stocks and ended the session with a loss of 285 points at 8607. Nifty was 89 points down at 2675 at closing.
The market breadth was negative. Of the 2,454 stocks traded on BSE, 1,633 stocks declined, whereas 734 stocks advanced. Eighty seven stocks ended unchanged. All the 13 sectoral indices except BSE CD ended lower. BSE Bankex shed 4.86% followed by BSE Metal (down 4.31%), BSE Oil, BSE CG, BSE Power, BSE PSU, BSE Teck, BSE FMCG, BSE Realty, BSE IT, BSE Auto and BSE HC were down 1-2% each.
Among Sensex stocks, Reliance Infrastructure tumbled 9.12% at Rs445.85, Tata Steel plunged 7.54% at Rs159.35, ICICI Bank slumped 7.28% at Rs304.20, Reliance Communications dropped 6.50% at Rs145.35, JP Associates shed 5% at Rs62.55, HDFC Bank lost 4.43% at Rs845.65, Larsen & Toubro was down 4.40% at Rs584.55 and Tata Consultancy Services declined 4.39% at Rs459.50 Other frontline stocks lost around 1-4% each. However, Mahindra & Mahindra was at Rs317.90, up 2.58%.
Over 3.40 crore shares of Edserv Softsystems changed hands on BSE followed by Cals Refineries (1.40 crore shares), Reliance Petroleum (0.89 crore shares), Satyam Computer Services (0.77 crore shares) and Unitech (0.69 crore shares).
Edserv Softsystems ends with 129% premium
Edserv Softsystems settled at Rs 137.55 on BSE, a sharp premium of 129.25% to its IPO price of Rs 60.
Meanwhile, the BSE Sensex ended lower 284.53 points or 3.20% to 8607.08.
The stock debuted at Rs 55, a discount of 8.33% over the initial public offer (IPO) price. The stock hit a high of 147 and low of Rs 55 during the day.
The counter saw high volumes of 3.41 crore shares on BSE.
At current price of Rs 137.55, the stock trades at a PE multiple of 65.5, based on its year ended March 2008 EPS of Rs 2.1.
The initial public offering of Edserv Softsystem (ESL) was oversubscribed 1.30 times. The qualified institutional buyer category was subscribed 1.07 times, the non institutional investors category 3.10 times and the retail investors category 1.02 times. The issue was open between 5 February 2009 - 9 February 2009.
ESL came with an initial public offering of 39.7 lakh equity shares of Rs 10 each in the price band of Rs 55 - Rs 60. The issue price was later fixed at Rs 60.
Incorporated in 2001, Chennai-based Edserv provides integrated learning and placement solutions, customized software solutions and placement consulting to clients in the field of IT and non-IT verticals. The company has three business units, viz. ELMAQ (IT Training), Edserv (HEADS) and Lambent (Software Development).
The proceeds of the issue would be utilized mainly for establishing the HEAL Lab to develop, test, install, connect and implement the D2J (Degree to Job) content across all HEADS Offices. It will also finance the cost for establishing HEADS Offices across India.
For the year ended on March 2008, the company posted net profit of Rs 2.53 crore on net sales of Rs 3.95 core.
BSE Bulk Deals to Watch - March 2 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
2/3/2009 524448 AHLCON PAREN BIKRAMJIT SINGH AHLUWALIA B 750090 14.00
2/3/2009 524448 AHLCON PAREN AHLUWALIA CONTRACT INDIA LTD. S 750090 14.00
2/3/2009 533055 EDSERV SOFT RAJESHPRAVINBHANUSHALI B 356923 117.66
2/3/2009 533055 EDSERV SOFT AVINISH KISHORCHANDRA SHUKLA B 91084 107.89
2/3/2009 533055 EDSERV SOFT MATRIX EQUITRADE PVT. LTD. B 2130360 106.60
2/3/2009 533055 EDSERV SOFT MARWADI SHARES AND FINANCE LIMITED B 304088 126.60
2/3/2009 533055 EDSERV SOFT EUREKA STOCK AND SHARE BROKING SERVICES LIMITED B 623928 117.14
2/3/2009 533055 EDSERV SOFT PIYUSHKUMAR B 307522 121.80
2/3/2009 533055 EDSERV SOFT ALKAAGARWAL B 159030 124.25
2/3/2009 533055 EDSERV SOFT OPG SECURITIES P LTD B 6416716 112.27
2/3/2009 533055 EDSERV SOFT JUGALKISHOREMODI B 689916 112.72
2/3/2009 533055 EDSERV SOFT MANSUKH SEC. AND FINANCE LTD. B 61468 116.15
2/3/2009 533055 EDSERV SOFT R M SHARES TRADING PVT LTD B 615058 114.68
2/3/2009 533055 EDSERV SOFT SAM GLOBAL SECURITIES LTD B 63880 101.16
2/3/2009 533055 EDSERV SOFT KAUSHIK SHAH SHARES SEC PL B 64087 74.35
2/3/2009 533055 EDSERV SOFT PRADEEPKUMARPARASMALJAIN B 269268 116.52
2/3/2009 533055 EDSERV SOFT H.J. SECURITIES PVT. LTD. B 2833872 110.56
2/3/2009 533055 EDSERV SOFT KHANDWALA TRADELINK B 174674 101.92
2/3/2009 533055 EDSERV SOFT MONTU K SHAH B 85465 129.47
2/3/2009 533055 EDSERV SOFT B K SHAH B 82395 106.65
2/3/2009 533055 EDSERV SOFT MOTILAL OSWAL FINANCIAL SERVICES LTD B 197791 89.77
2/3/2009 533055 EDSERV SOFT MAVI BUSINESS VENTURES LTD B 125000 86.85
2/3/2009 533055 EDSERV SOFT NIRMALABEN CHHATRABHUJ SHAH B 89661 81.48
2/3/2009 533055 EDSERV SOFT RAJESHPRAVINBHANUSHALI S 301923 108.09
2/3/2009 533055 EDSERV SOFT MATRIX EQUITRADE PVT. LTD. S 2130360 106.60
2/3/2009 533055 EDSERV SOFT MARWADI SHARES AND FINANCE LIMITED S 304088 127.28
2/3/2009 533055 EDSERV SOFT EUREKA STOCK AND SHARE BROKING SERVICES LIMITED S 623928 117.43
2/3/2009 533055 EDSERV SOFT PIYUSHKUMAR S 307522 122.03
2/3/2009 533055 EDSERV SOFT ALKAAGARWAL S 159030 124.37
2/3/2009 533055 EDSERV SOFT OPG SECURITIES P LTD S 6416716 112.39
2/3/2009 533055 EDSERV SOFT JUGALKISHOREMODI S 689916 112.93
2/3/2009 533055 EDSERV SOFT MANSUKH SEC. AND FINANCE LTD. S 61468 115.71
2/3/2009 533055 EDSERV SOFT R M SHARES TRADING PVT LTD S 615058 116.05
2/3/2009 533055 EDSERV SOFT SAM GLOBAL SECURITIES LTD S 63880 102.25
2/3/2009 533055 EDSERV SOFT KAUSHIK SHAH SHARES SEC PL S 64087 81.45
2/3/2009 533055 EDSERV SOFT PRADEEPKUMARPARASMALJAIN S 269268 116.63
2/3/2009 533055 EDSERV SOFT H.J. SECURITIES PVT. LTD. S 2833872 110.62
2/3/2009 533055 EDSERV SOFT KHANDWALA TRADELINK S 174674 105.14
2/3/2009 533055 EDSERV SOFT MONTU K SHAH S 85465 128.77
2/3/2009 533055 EDSERV SOFT B K SHAH S 82395 108.25
2/3/2009 533055 EDSERV SOFT MOTILAL OSWAL FINANCIAL SERVICES LTD S 197791 91.00
2/3/2009 533055 EDSERV SOFT MAVI BUSINESS VENTURES LTD S 75000 119.45
2/3/2009 533055 EDSERV SOFT NIRMALABEN CHHATRABHUJ SHAH S 89661 80.47
2/3/2009 504000 ELPRO INTERN LOTUS GLOBAL INVESTMENTS LIMITED S 70000 255.00
2/3/2009 513059 G.S. AUTO HARDIK M MITHANI B 39767 7.35
2/3/2009 531137 GEMSTONE INV NAINESH HIMAT JATANIA S 20000 22.85
2/3/2009 511728 KZLEASING KARAN MAHESHKUMAR HADVANI B 17027 56.42
2/3/2009 511728 KZLEASING JYOTIKABEN MAHESHBHAI HADVANI B 18030 56.33
2/3/2009 504864 ORISA SP IRS NISHU FINLEASE PVT LTD B 108400 326.55
2/3/2009 526588 PHOTOQUIP IN VIMAL J SONI B 80000 9.95
2/3/2009 526588 PHOTOQUIP IN JAVED S SAIYED S 79700 9.95
2/3/2009 524727 SPAN DIAGNOS BAJRANG MAHESHWARI B 20000 35.00
2/3/2009 524727 SPAN DIAGNOS NIMBARAM DHARMAJI PRAJAPATI B 20000 45.00
2/3/2009 524727 SPAN DIAGNOS BAJRANG MAHESHWARI S 20000 45.00
2/3/2009 524727 SPAN DIAGNOS NIMBARAM DHARMAJI PRAJAPATI S 20000 35.00
2/3/2009 532619 UTV SOFTWARE FIDELITY FUNDS MAURITIUS LIMITED B 286212 195.00
2/3/2009 531249 WELL PACK PA GANDHI MANISHA NAVNEETLAL B 25000 74.44
NSE Bulk Deals to Watch - March 2 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
02-MAR-2009,EDSERV,Edserv Softsystems Limite,A TO Z STOCK TRADE PRIVATE LIMITED,BUY,222632,124.62,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,AJAY ASSET MANAGEMENT PRIVATE LIMITED,BUY,97168,125.55,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,AMBIT SECURITIES BROKING PVT. LTD.,BUY,657286,117.96,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,ANBU CHEZHIAN R,BUY,64000,132.81,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,ARCHITA C GADA,BUY,132769,114.10,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,BUY,561206,107.71,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,BUY,377541,129.48,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,AVINISH KISHORCHANDRA SHUKLA,BUY,103500,112.59,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,B K SHAH CO KETAN BHAILAL SHAH,BUY,150338,106.16,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,BHAVIN SURESH CHHEDA,BUY,195486,119.08,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,BUY,1257486,111.85,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,CHOKHANI SECURITIES LTD,BUY,90263,122.45,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,CPR CAPITAL SERVICES LTD.,BUY,424239,122.99,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,DEPANSU SECURITIES INDIA PRIVATE LIMITED,BUY,222068,124.85,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,DHYAN SECURITIES PVT LTD,BUY,84924,112.65,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,DINDAYAL BIYANI STOCK BROKERS LTD,BUY,149676,116.12,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,DINESH MUNJAL,BUY,438086,121.18,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,DIPAN MEHTA SHARE & STOCK BROKERS PVT. LTD.,BUY,135630,103.79,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,DKG SECURITIES PVT. LTD.,BUY,327949,112.01,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,EPOCH SYNTHETICS PVT LTD,BUY,8568,101.90,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,G RAMAKRISHNA,BUY,288177,117.45,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,GENUINE STOCK BROKERS PVT LTD,BUY,60605,133.89,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,GHALLA BHANSALI STOCK BROKERS PVT. LTD.,BUY,263244,103.21,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,HARBUX SINGH SIDHU,BUY,820226,119.62,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,INDIA ADVANTAGE SECURITIES LTD.,BUY,182918,129.30,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,JAY SURESH CHHEDA,BUY,158422,121.62,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,1146468,109.27,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,KHANDWALA TRADELINK CO,BUY,139901,106.13,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,KOTECHA NIRMAL NARENDRA,BUY,69500,63.74,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,KRUNAL FINVEST- NIKESH NATAVARLAL SHETH,BUY,60045,137.78,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,894067,132.35,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,M/S JIYA INVESTMENTS,BUY,259242,115.61,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MAHALAXMI INVESTMENTS,BUY,71506,111.60,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MANIPUT INVESTMENTS PVT LTD,BUY,1365483,118.35,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MANSUKH SECURITIES & FINANCE LTD,BUY,66248,118.61,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MARWADI SHARES AND FINANCE LIMITED,BUY,356322,126.71,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MAVI BUSINESS VENTURE LTD,BUY,270000,97.32,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MBL & COMPANY LTD.,BUY,80771,130.52,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MITHALI MUKESH GUDEKAR,BUY,272111,97.12,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MITHUN SECURITIES PVT. LTD.,BUY,80154,115.26,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MLB CAPITAL PVT LTD,BUY,101700,125.05,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MOTILAL OSWAL FINANCIAL SERVICES LTD,BUY,182024,94.40,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MUKUL RAMVALLABH TIBREWALA,BUY,91820,124.71,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MULTIPLIER S AND S ADV PVT LTD,BUY,146499,126.94,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,NAMAN SECURITIES & FINANCE PVT LTD,BUY,171114,124.44,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,NEPTUNE FINCOT PVT LTD,BUY,187556,135.62,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,NIRMALA B,BUY,77570,133.47,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,NIRMIT MUKESHKUMAR PATEL,BUY,178175,129.56,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,OM INVESTMENTS,BUY,521491,131.60,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,OPG SECURITIES PVT. LTD.,BUY,219195,118.07,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,P R B SECURITIES PRIVATE LTD,BUY,173659,135.87,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,PRASHANT JAYANTILAL PATEL,BUY,514649,130.29,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,R APPALA RAJU,BUY,408000,122.82,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,R BABY,BUY,95000,107.06,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,R.M. SHARE TRADING PVT LTD,BUY,746837,113.75,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SAI PRASAD REDDY LOMADA,BUY,71001,138.40,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SALASAR STOCK BROKING LTD.,BUY,81159,118.51,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SARAVANA STOCKS PRIVATE LIMITED,BUY,160000,108.81,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SETHU S,BUY,122114,116.88,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SHAH PRAFUL MANILAL HUF,BUY,98854,106.77,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SHANTANU GUPTA,BUY,72500,91.03,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SMC GLOBAL SECURITIES LTD.,BUY,65097,106.07,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SRINIVAS M R,BUY,88442,114.04,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SUNEET LAL,BUY,72913,103.98,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SUPREME STOCKS PRIVATE LIMITED,BUY,90000,135.41,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SWARAJ SHARES & SEC PVT. LTD.,BUY,162946,99.67,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,TODI SECURITIES PVT. LTD.,BUY,66826,133.49,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,TRANSGLOBAL SECURITIES LTD.,BUY,621869,119.13,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,URMILA L N SERI,BUY,98100,122.21,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,URVI INVESTMENT (PROP:JYOTI MEHTA),BUY,60491,132.44,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,VAIBHAV DOSHI,BUY,385494,119.09,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,VASUDEVA RAO K,BUY,191000,116.01,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,VINAN BROKING SERVICES PVT LTD,BUY,319589,111.73,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,VIREN RAMNIKLAL KENIA,BUY,118204,109.92,-
02-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,126998,1606.32,-
02-MAR-2009,KALINDEE,Kalindee Rail Nirman (Eng,L&T CAPITAL COMPANY LIMITED,BUY,61199,86.13,-
02-MAR-2009,UTVSOF,UTV Software Communicatio,FID FUNDS MAURITIUS LIMITED ,BUY,318085,197.59,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,A TO Z STOCK TRADE PRIVATE LIMITED,SELL,222632,124.70,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,AJAY ASSET MANAGEMENT PRIVATE LIMITED,SELL,97168,126.10,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,AMBIT SECURITIES BROKING PVT. LTD.,SELL,657286,117.99,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,ANBU CHEZHIAN R,SELL,64000,132.69,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,ARCHITA C GADA,SELL,132769,114.78,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,SELL,561206,107.66,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,SELL,377541,129.64,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,AVINISH KISHORCHANDRA SHUKLA,SELL,45000,123.70,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,B K SHAH CO KETAN BHAILAL SHAH,SELL,150350,107.42,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,BHAVIN SURESH CHHEDA,SELL,195486,118.65,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,SELL,1257488,111.17,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,CHOKHANI SECURITIES LTD,SELL,90264,123.61,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,CPR CAPITAL SERVICES LTD.,SELL,424239,123.05,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,DEPANSU SECURITIES INDIA PRIVATE LIMITED,SELL,222068,124.71,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,DHYAN SECURITIES PVT LTD,SELL,84924,112.91,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,DINDAYAL BIYANI STOCK BROKERS LTD,SELL,149676,114.06,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,DINESH MUNJAL,SELL,438086,120.54,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,DIPAN MEHTA SHARE & STOCK BROKERS PVT. LTD.,SELL,135630,103.66,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,DKG SECURITIES PVT. LTD.,SELL,327949,127.55,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,EPOCH SYNTHETICS PVT LTD,SELL,61368,72.41,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,G RAMAKRISHNA,SELL,288177,117.30,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,GENUINE STOCK BROKERS PVT LTD,SELL,60605,133.93,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,GHALLA BHANSALI STOCK BROKERS PVT. LTD.,SELL,224210,101.44,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,HARBUX SINGH SIDHU,SELL,820226,119.82,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,INDIA ADVANTAGE SECURITIES LTD.,SELL,182918,130.29,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,INDIA MAX INVESTMENT FUND LTD,SELL,406354,65.00,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,JAY SURESH CHHEDA,SELL,158422,121.71,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,1146468,108.94,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,KHANDWALA TRADELINK CO,SELL,139901,100.77,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,KOTECHA NIRMAL NARENDRA,SELL,10000,116.44,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,KRUNAL FINVEST- NIKESH NATAVARLAL SHETH,SELL,88337,134.95,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,894067,132.44,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,M/S JIYA INVESTMENTS,SELL,259242,115.63,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MAHALAXMI INVESTMENTS,SELL,71506,111.55,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MANIPUT INVESTMENTS PVT LTD,SELL,1365483,118.40,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MANSUKH SECURITIES & FINANCE LTD,SELL,66248,117.78,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MARWADI SHARES AND FINANCE LIMITED,SELL,356322,126.90,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MBL & COMPANY LTD.,SELL,80771,130.30,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MITHALI MUKESH GUDEKAR,SELL,272111,106.41,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MITHUN SECURITIES PVT. LTD.,SELL,80154,115.04,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MLB CAPITAL PVT LTD,SELL,101700,122.74,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MOTILAL OSWAL FINANCIAL SERVICES LTD,SELL,182024,93.42,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MUKUL RAMVALLABH TIBREWALA,SELL,81820,129.85,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,MULTIPLIER S AND S ADV PVT LTD,SELL,146495,127.21,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,NAMAN SECURITIES & FINANCE PVT LTD,SELL,171114,124.94,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,NEPTUNE FINCOT PVT LTD,SELL,187556,136.08,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,NIRMALA B,SELL,77570,133.32,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,NIRMIT MUKESHKUMAR PATEL,SELL,175175,128.63,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,OM INVESTMENTS,SELL,521491,131.72,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,OPG SECURITIES PVT. LTD.,SELL,219195,118.39,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,P R B SECURITIES PRIVATE LTD,SELL,173659,135.89,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,PRASHANT JAYANTILAL PATEL,SELL,514649,130.39,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,R APPALA RAJU,SELL,408000,122.75,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,R BABY,SELL,95000,140.16,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,R.M. SHARE TRADING PVT LTD,SELL,746837,112.60,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SAI PRASAD REDDY LOMADA,SELL,71001,132.94,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SALASAR STOCK BROKING LTD.,SELL,74159,129.41,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SARAVANA STOCKS PRIVATE LIMITED,SELL,150000,120.55,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SETHU S,SELL,122114,117.21,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SHAH PRAFUL MANILAL HUF,SELL,98854,108.44,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SHANTANU GUPTA,SELL,62500,100.11,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SMC GLOBAL SECURITIES LTD.,SELL,65097,104.97,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SRINIVAS M R,SELL,88442,115.49,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SUNEET LAL,SELL,72913,102.33,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SUPREME STOCKS PRIVATE LIMITED,SELL,90000,129.77,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,SWARAJ SHARES & SEC PVT. LTD.,SELL,162946,124.33,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,TODI SECURITIES PVT. LTD.,SELL,66826,133.68,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,TRANSGLOBAL SECURITIES LTD.,SELL,621869,118.56,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,URMILA L N SERI,SELL,98100,122.73,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,URVI INVESTMENT (PROP:JYOTI MEHTA),SELL,65491,132.70,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,VAIBHAV DOSHI,SELL,380494,119.76,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,VASUDEVA RAO K,SELL,191000,126.37,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,VINAN BROKING SERVICES PVT LTD,SELL,354010,111.64,-
02-MAR-2009,EDSERV,Edserv Softsystems Limite,VIREN RAMNIKLAL KENIA,SELL,118204,110.49,-
02-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,126998,1607.77,-
02-MAR-2009,MARKSANS,Marksans Pharma Limited,SANGAM FISCALS & HOLDINGS PVT LTD,SELL,2050000,5.40,-
Sensex tumbles to 3-month low on US gloom
Weak global markets and data showing slide in India's exports for the fourth month in a row in January 2009 hit the domestic bourses hard. Trading in US index futures indicated the Dow could slide 137 points at the opening bell on Monday, 2 March 2009. The BSE 30-share Sensex tumbled 284.53 points, or 3.2%.
After a sharp slide at the onset of the trading session, the market immediately recovered from lower level as fears of heavy selling by foreign funds eased to some extent as the performance of the two indices which gauge institutional activity on the bourses indicated that neither foreign institutional investors' (FIIs) nor domestic funds' selling had pulled the market lower at the onset of the trading session. The market weakened again at about 14:00 IST on as European markets, which opened after Indian market, dropped in early trade.
After a sharp slide in mid-afternoon trade, the market immediately cut losses as the performance of the two institutional investors' indices showed that domestic institutional investors (DIIs) could be absorbing the sales of accelerated selling by foreign funds by mid-day. At 13:00 IST, the Instanex FII Index had fallen 2.49% verses a 2.45% slide in S&P CNX Nifty and 2.27% fall in Sensex. At that time, the Instanex DII 15 Portfolio was down 1.88%, outperforming the Instanex FII Index as well as the Nifty and the Sensex.
But the intraday recovery on bourses was short-lived as the market witnessed a one-way sharp slide in late trade.
According to an end-of the day analysis by Instanex Capital Consultants which owns and manages the 15-share Instanex FII index, today's fall in was not led by selling by foreign funds. The index fell 3.07% at 194.56 today, outperforming the BSE Sensex and Nifty. While Sensex lost 3.2%, the Nifty lost 3.22%.
The analysis also showed that DIIs had absorbed most of the selling as the fall in the Instanex DII 15 Portfolio was just much lower than the two key benchmark indices at 2.8%. Since the past few days, DIIs have been absorbing heavy sales by foreign institutional investors.
FIIs have pressed substantial sales of Indian stocks this year. FIIs have pressed substantial sales of Indian stocks this year. FII outflow in February 2009 totaled Rs 2707 crore. FII outflow in calendar year 2009 totaled Rs 6940.90 crore (till 27 February 2009).
As per the provisional data on BSE, foreign institutional investors (FIIs) sold shares worth Rs 580.43 crore and domestic funds bought shares worth Rs 334.13 crore today, 2 March 2009.
Banking, IT, capital goods and metal stocks led the decline on the domestic bourses today, 2 March 2009. Index heavyweight Reliance Industries (RIL) was down after its board approved a swap ratio for merger of Reliance Petroleum (RPL) with the company, with the merger ratio being more favourable to RPL. Auto stocks pared gains after an intraday rally triggered by strong monthly sales figures announced Maruti Suzuki and Hero Honda Motors.
The market has been agog with talks of a rate cut by the RBI shortly. Some expectations were that the rate cut could have been at the weekend (either on Saturday 28 March 2009 or Sunday 1 March 2009). However, there was no such announcement at the weekend, disappointing the stock market investors.
Meanwhile, Indian manufacturing activity shrank for a fourth straight month in February 2009 as the global downturn hurt demand and soured business sentiment, a survey showed on Monday. The ABN AMRO Bank purchasing managers'index (PMI), based on a survey of 500 companies, rose to a seasonally adjusted 47 in February 2009 from January's 46.7. A reading above 50 signals economic expansion while a figure below 50 suggests contraction. Manufacturing makes up about 16% of India's gross domestic product.
India's exports fell an annual 15.9% to $12.38 billion in January 2009 over January 2008, government data released during trading hours today showed. It was the fourth straight loss as the global slowdown shaved off demand for Indian goods. The trade deficit narrowed to $6.1 billion in January 2009 compared with $7.57 billion in December 2008 due to a sharp decline in imports. Imports were down 18.2% at $18.46 billion in January 2009, led by 47.5% fall in oil imports.
N Gopalaswami, the Chief Election Commissioner, today announced that Lok Sabha elections will begin on 16 April 2009 and the 15th Lok sabha will be constituted by 2 June 2009.
The outcome of the election will be a key drive of the domestic bourses going ahead. The market may recover if a coalition led either by Congress or BJP comes to power. But the recovery will be subject to BJP or Congress led coalition coming to power without a support from the Left front which is against key economic reforms. The market will then look for whether the new government which comes to power undertakes second generation reforms that could bring India back on a strong growth path witnessed in five years between 2003 and 2008.
It is highly unlikely that either Congress or BJP comes to power on its own i.e. without the support of other smaller/regional parties. Elections are likely to be held in phases during April-May 2009.
European shares fell sharply on Monday, led lower by HSBC, which slid after unveiling a big rights issue as its annual profits fell and bad debts soared in the United States. The key benchmark indices in France, Germany and UK were down by between 3.42% to 4.58%.
Asian shares plunged as declines in Japanese wages and South Korean exports fueled concerns the global recession is deepening. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were down by between 2.88% to 4.16%. While, China's Shanghai Composite rose 0.51%.
Monthly wages in Japan fell 1.3% in January 2009 from a year earlier, after declining 0.8% in December 2008, the Labor Ministry said in Tokyo today. South Korea's overseas shipments decreased 17.1% in February 2009 from a year earlier following previous month's record 33.8% percent slump, the government reported today.
US stocks tumbled on Friday, 27 February 2009, after the Commerce Department said the US economy shrank in the three months to December 2008 by the most since 1982.
The BSE 30-share Sensex was down 284.53 points, or 3.2%, to 8,607.08, its lowest closing since 20 November 2008. At the day's low of 8,563.52 Sensex fell 328.09 points in late trade, its lowest level since 2 December 2008. At the day's high of 8,762.88 Sensex fell 128.73 points in early trade.
The S&P CNX Nifty was down 89.05 points, or 3.22%, to 2,674.60.
The market breadth, indicating the overall health of the market, was weak on BSE with 745 shares advancing as compared with 1,659 that declined. A total of 69 shares remained unchanged.
The Sensex is down 1,040.23 points or 10.78% in calendar 2009 from its close of 9,647.31 on 31 December 2008.
The BSE clocked a turnover of Rs 2182 crore, lower than Rs 3052.95 crore on Friday, 27 February 2009.
Nifty March 2009 futures were at 2629.80, at a discount of 44.80 points as compared to the spot closing of 2674.60. Turnover in NSE's futures & options (F&O) segment was Rs 35310.68 crore lower than Rs 39204.47 crore on Friday, 27 February 2009.
The BSE Consumer Durables index (up 0.15%), the BSE Healthcare index (down 0.41%), the BSE Auto index (down 1%), the BSE IT index (down 1.84%), the BSE Realty index (down 2.36%), the BSE FMCG index (down 2.48%), the BSE TECk index (down 2.5%), the BSE PSU index (down 2.61%), the BSE Power index (down 2.83%), the BSE Capital Goods index (down 2.9%), the BSE Oil & Gas index (down 2.94%) outperformed the Sensex.
The BSE Bankex (down 4.36%) and the BSE Metal index (down 4.31%) underperfomed the Sensex.
From the 30 share Sensex pack, 29 stocks fell and only one stock gained.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) fell 3.15% to Rs 1,225.15 after the company set the swap ratio for merger of Reliance Petroluem slightly in favour of Reliance Petroleum. Reliance Industries said on Monday its board approved the absorption of its unit Reliance Petroleum (RPL) and set a share swap ratio giving it direct control of the world's largest refinery complex. Reliance Industries said it would issue one share for every 16 held in RPL, which runs a refinery.
Reliance Industries said late on Friday 27 February 2009, it would also buy Chevron's 5 % stake in Reliance Petroleum valued at $344 million as of the close of trade on Friday. Reliance Industries said it would own 75.38% of Reliance Petroleum after buying out Chevron's stake. Shares of Reliance Petroleum was volatile now down 1.38% to Rs 75.15.
Meanwhile, RIL today said its absorption of its unit RPL will be tax neutral for both the entities i.e. both the refineries will retain their tax benefits.
Oil exploration firms ONGC and Cairn India declined by 3.92% each as oil April 2009 Nymex crude oil futures were 80 cents lower at $43.96 a barrel on Globex hurt by weak US gross domestic product data. It had risen sharply last week.
Banking stocks fell as fears of rising defaults in a weakening economy and on fall in American Depository Receipts (ADRs) offset hopes a further fall in interest rates may boost lending growth. India's largest private sector bank by net profit ICICI Bank fell 7.28%. Its American Depository Receipts (ADR) slipped 2.88% on Friday, 27 February 2009. Recently, Life Insurance Corporation of India hiked its stake in ICICI Bank by 2.04% to 9.38%.
India's largest bank in terms of assets and branch network State Bank of India fell 3.1%. The Indian government on Tuesday 24 February 2009 introduced a bill in Parliament which will enable it to increase the capital base of State Bank of India's subsidiaries and issue preference and bonus shares of these entities. India's second largest private sector bank by net profit HDFC Bank slipped 4.43% as its ADR fell 1.49% on Friday.
PSU bank stocks, Indian Overseas Bank, Union Bank of India, Bank of Baroda, Bank of India fell by between 1.38% to 4.55%.
Dewan Housing Finance Corporation rose 1.32% after the company said its board will meet on 6 March 2009 to consider raising funds through issue of equity shares on rights basis.
Despite a steep cut in policy rates by RBI since October 2008, there has not been a commensurate reduction in lending rates by banks as fears of rising bad loans have made them cautious in increasing advances/lending. One reason why banks have not fully passed on the central bank rate cuts to customers is because higher bond yields are pushing up their funding costs. Bond yields and bond prices are inversely related. After a steep decline in bond yields in Q3 December 2008, the yields have hardened considerably in calendar year 2009 on worries over government's borrowing programme.
As per the latest data by the Reserve Bank of India, the banking sector lent over Rs 10,000 crore in the fortnight ended 13 February 2009. Food credit rose Rs 547.82 crore, while non-food credit went up by Rs 9124.95 crore. This is the highest fortnightly growth in bank loans since November 2007.
Metal stocks declined on fall in global base metal prices on the London Metal Exchange due to dismal global economic data. Hindalco Industries, Steel Authority of India, National Aluminum Company and Sterlite Industries fell by between 1.31% to 5.79%.
The world's sixth largest steel maker by sales Tata Steel fell 7.54% to Rs 159.35. The stock had surged 5.61% to Rs 172.35 on Friday, 27 February 2009 after announcing forecast-bearing consolidated results. On a consolidated basis, the company's net profit fell 44.18% to Rs 732.21 crore on 3.57% rise in total income to Rs 33,222.59 crore in Q3 December 2008 over Q3 December 2007. The market was expecting a loss.
Auto Stocks pared intraday gains in a weak market. India's largest car maker by sales Maruti Suzuki India fell 0.3% to Rs 675.55, off the day's high of Rs 693.70. Its vehicle sales rose 24.1% to 79190 units in February 2009 over February 2008. It was a record monthly sales by the car maker.
TVS Motor Company rose 2.58% after its two wheeler sales rose 13% to 1,07,301 units in February 2009 over February 2008. But India's largest motorcycle maker by sales Hero Honda Motors fell 3.38% despite reporting a 24% jump in its total sale for the month of February 2009, at 3,29,055 units, as compared to 2,65,431 units in February 2008.
India's second largest motorcycle maker in terms of market share Bajaj Auto fell 4.93% after total vehicle sales fell 16% to 1,53,782 units in February 2009 over February 2008.
India's largest tractor maker by sales Mahindra & Mahindra rose 2.58% to Rs 317.90, off the day's high of Rs 325.50. India's largest commercial vehicle maker by sales Tata Motors fell 0.2% to Rs 149.15, off the day's high of Rs 153.90.
Apollo Tyres rose 23.81% after the company said its board will meet on March 19 to consider a share buyback.
Capital goods stocks fell on worries a slowing economy will crimp orders. Larsen & Toubro, Bharat Heavy Electricals, Crompton Greaves, ABB, Thermax fell by between 0.57% to 4.4%.
Outsourcing focussed IT firms fell on fears a weak global economy would cut the amount firms spent on technology and on fall in ADRs overnight. India's third largest software services exporter, Wipro fell 2.17% as its ADR fell 4.05% on Friday. India's second largest software services exporter Infosys Technologies fell 1.02%. Its ADR remained unchanged on Friday. India's largest software services exporter by sales TCS declined 4.39%.
IT firms derive a lion's share of revenue from exports to US. There have been concerns of cut back in technology spend by global firms amid a recession in the US economy and due to the global financial sector crisis.
IT stocks fell despite a weak rupee. The Indian rupee dropped to an all-time low on Monday on heightened fears of rising capital outflows from the stock market. The partially convertible rupee was at 51.92 from Friday's close of 51.10/12 per dollar. A weak rupee boosts revenues of IT firms in rupee terms as IT companies earn a lion's share of revenue from exports.
Rate sensitive realty stocks fell on recent reports falling interest rates have failed to revive housing demand. DLF, Indiabulls Real Estate and Unitech fell by between 1.78% to 4.61%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
Some HealthCare stocks rose on defensive buying. Glenmark Pharmaceuticals, Biocon, Fortis HealthCare, Dr. Reddy's Laboratories, Novartis India rose by between 0.84% to 8.59%.
Edserv Softsystems settled at Rs 137.55, a 129.25% premium over its issue price of Rs 60, on its debut today.
Cals Refineries clocked the highest volume of 1.4 crore shares on BSE. Reliance Petroleum (89.97 lakh shares), Satyam Computer Services (77.68 lakh shares), Unitech (69.04 lakh shares) and Suzlon Energy (45.49 lakh shares) were the other volume toppers in hat order.
Reliance Industries clocked the highest turnover of Rs 205.88 crore on BSE. Educomp Solutions (Rs 116.42 crore), ICICI Bank (Rs 98.01 lakh), State Bank of India (Rs 88.30 lakh) and Reliance Infrastructure (Rs 81.94 lakh) were the other turnover toppers in that order.
India Votes 2009 - Election Dates
Lok Sabha elections will be held in five phases from April 16 to May 13 in redrawn constituencies for the first time, the Election Commission announced on Monday.
Setting in motion the process for the constitution of the 15th Lok Sabha, the poll panel said a total of 714 million electorate will cast their votes on April 16, 23, 30, May 7 and 13 to elect the 543-member House.
Counting of votes will take place on May 16, chief election commissioner N Gopalaswami, flanked by Election commissioners Navin Chawla and SY Quraishi, announced at a press conference here.
Uttar Pradesh, which has the maximum of 80 seats, and Jammu and Kashmir will have five-phase polls while Bihar will go to polls in four stages.
Maharashtra and West Bengal will have three phased polls, while Andhra Pradesh, Assam, Jharkhand, Karnataka, Madhya Pradesh, Manipur, Orissa and Punjab will have voting in two stages.
The remaining 15 states and seven union territories will have one-day poll, he said.
Assembly elections to Andhra Pradesh, Orissa and Sikkim will also be held along with the Lok Sabha poll
Market may edge lower on weak Asian stocks
A setback in Asian stocks, no rate cut announcement by the Reserve Bank of India at the week-end and sustained selling by foreign funds may pull the market lower. Monthly sales figures of auto and cement firms which would be out in the next 2-3 days and swap ratio for merger of Reliance Petroleum (RPL) with Reliance Industries (RIL) will influence trade in the near term.
Auto and cement sales figures for February 2009 could be keenly watched to get an inkling of the economy which is suffering a slowdown.
Meanwhile, the high weightage of index heavyweight RIL in the key benchmark indices, even a small movement in RIL stock could have large impact on the Sensex and the Nifty. The board of RIL and RIL meet today to consider the merger.
The market has been agog with talks of a rate cut by the RBI shortly. Some expectations were that the rate cut could have been at the week-end (either on Saturday 28 March 2009 or Sunday 1 March 2009). However, there was no such announcement at the week-end which may put pressure on stocks.
Despite a steep cut in policy rates by RBI since October 2008, there has not been a commensurate reduction in lending rates by banks as fears of rising bad loans have made them cautious in increasing advances/lending. One reason why banks have not fully passed on the central bank rate cuts to customers is because higher bond yields are pushing up their funding costs. Bond yields and bond prices are inversely related. After a steep decline in bond yields in Q3 December 2008, the yields have hardened considerably in calendar year 2009 on worries over government's borrowing programme.
Asian shares started the week on a downbeat note amid worries about the health of large US banks and the economy. Key benchmark indices in Hong Kong, Japan, China, South Korea, Singapore and Taiwan were down by between 0.37% to 4.7%
Pre Session Commentary - March 2 2009
Today domestic markets are likely to open negative as other markets across Asia have opened with brutal losses. The only domestic news that would storm the markets today is the merger of RIL and RPL. The swap ratio is not yet confirmed however there are anticipations that RIL’s stock may surge due to certain advantages of merger. Sterlite Industries could be another stock in motion today as the company has bid US Asarco for $ 1.5 billion. However the domestic market sentiments are likely to track the movements and sentiments of other Asian markets. One could witness selling pressure amidst volatility during the day’s trading session.
On Friday, the markets managed to pare off it early losses but still closed in red. The sentiments were weak since the opening and there was enough selling pressure across broader markets. Majority of Asian markets were trading in red and all the European markets could hardly survive the claw of bears. Amidst bearish sentiments prevailing across other markets, domestic traders were never late to evade their risk. However at the fag end of trading session, fresh buying helped recover some early losses. Sectors like Bankex, FMCG and Metal managed to close in green by gains of 1.31%, 0.34% and 0.22% respectively. However Realty, Oil & Gas and Tech were the top laggards as they fell by 2.29%, 1.64% and 1.40% respectively. During the session we expect the markets to be trading negative with volatility across the trading session.
The BSE Sensex closed low by 63.25 points at 8,891.61 and NSE Nifty ended low by 22 points at 2,763.65. The BSE Mid Caps closed flat at 2,758.29 and 3,106.01. The BSE Sensex touched intraday high of 8,944.11 and intraday low of 8,728.66.
On Friday, the US stock markets closed in red due to expectations of contraction in its GDP for the fourth quarter. Economic data remains gloomy. The fourth quarter GDP has been revised lower to reflect an annual rate of -6.2% versus a previously estimated -3.8%. The decrease in fourth quarter activity primarily reflected negative contributions from exports, personal consumption expenditures, equipment and software, and residential fixed investment. The selling pressure exacerbated after Citi Group announced that it is offering common shares of $ 27.5 billion in its existing preferred equity. The government will exchange a maximum of $25 billion face value of its preferred stock, which gives the government a 36% stake in the company. US light crude oil for April delivery reversed its three day rally, as the prices fell by $0.46 to settle at $44.76 a barrel on the New York Mercantile Exchange. The crude prices touched a low of $42.55 during the intraday.
The Dow Jones Industrial Average (DJIA) declined by 119.15 points to close at 7,062.93. The NASDAQ Composite (RIXF) index fell by 13.63 points to close at 1,377.84 and the S&P 500 (SPX) fell by 17.74 points to close at 735.09.
Today major stock markets in Asia are trading in deep red. Shanghai composite is down by 7.75 points to 2,075.08, Japan''s Nikkei is low by 242.46 points at 7,325.96. Hang Seng is low by 504.94 points at 12,306.63, South Korea''s Seoul Composite is low by 46.07 points at 1,016.96 and Singapore''s Strait Times is also trading low by 53.94 points to 1,540.93.
Indian ADRs closed lower. In technology sector, Satyam ended down by 19.25% along with Wipro by 4.05%. Further, Infosys remained unchanged and Patni Computers closed down by 5.80%. In banking sector ICICI Bank and HDFC Bank lost 2.88% and 1.49% respectively. In telecommunication sector, MTNL gained 8.11% while Tata Communication plunged 0.81%. However, Sterlite Industries increased by 3.16%.
The FIIs on Friday stood as net sellers in equity and net buyer in debt. Gross equity purchased stood at Rs 1,353.60 Crore and gross debt purchased stood at Rs 755.50 Crore, while the gross equity sold stood at Rs 1,592.30 Crore and gross debt sold stood at Rs. 306.60 Crore. Therefore, the net investment of equity and debt reported were Rs (238.60) Crore and Rs 448.90 Crore respectively.
On Friday, the Indian rupee closed at 51.10/12, 1.3% weaker than its previous close of 50.45/47. The rupee slipped further for the fifth consecutive day on the back of huge demand from importers and plummeting stock markets.
On BSE, total number of shares traded were 22.69 Crore and total turnover stood at Rs 3,052.95 Crore. On NSE, total number of shares traded were 53.24 Crore and total turnover was Rs 8,898.93 Crore.
Top traded volumes on NSE Nifty – Unitech with 23204854 shares, Power Grid with 19916378 shares, ICICI Bank with 17868678 shares, Tata Steel with total volume traded 14548491 shares followed by SAIL with 13640735 shares.
On NSE Future and Options, total number of contracts traded in index futures was 955328 with a total turnover of Rs 12,316.70 Crore. Along with this total number of contracts traded in stock futures were 378407 with a total turnover of Rs 10,302.97 Crore. Total numbers of contracts for index options were 1131309 with a total turnover of Rs 15,693.34 Crore and total numbers of contracts for stock options were 28719 and notional turnover was Rs 891.46 Crore.
Today, Nifty would have a support at 2,693 and resistance at 2,742 and BSE Sensex has support at 8,773 and resistance at 8,862.
Markets to remain shaky
After witnessing a slump in last weeks trades, the market is likely to remain shaky as global markets fell further and the FIIs remaining net sellers of equities in the local market. Although the sentiment is likely to remain bearish on weak global indices. Among the key domestic indices, the Nifty may get support at 2830 and a break below this level could see the index slip further to 2800. The Sensex has a likely support at 8740 and may test higher levels at 9050.
US indices slumped on Friday as the Dow ended lower at 7063 down 119 points, while the tech-laden Nasdaq declined to close 14 points lower at 1378.
Indian floats had a weak outing on the US bourses. Except MTNL all fell sharply. Satyam tumbled 19.25%, Rediff slipped 6.17% and Patni Computer, Tata Motors, Wipro, ICICI Bank, Dr Reddy, VSNL dropped over 1-5% each.
Crude oil prices in the international market edged lower, with the Nymex light crude oil for April delivery lost by 46 cents to close at $44.76 per barrel. In the commodity space, the Comex gold for April series declined 10 cents to settle at $942.50 a troy ounce.
US markets to fall to 11 year low
Indices drop to lowest levels in eleven years
Wall Street continued with its streak of loss making weeks even for the week that ended on Friday, 27 February, 2009. Though the week kicked off on a relatively strong note with some modest support from the financial sector, couple of economic reports and developments in Wall Street in the banking sector weighed on investor sentiments during the course of the week. Big companies continued to slash their dividends to curtail costs and unemployment continued to remain at highest levels in three decades.
The Dow Jones Industrial Average lost 302 points (4.1%) for the week to end at 7,062. Tech - heavy Nasdaq lost 63 (4.4%) to end at 1,377. S&P 500 lost 35 (4.5%) to end at 735.
On Monday, 23 February, 2009, amid news of nationalization of US banks, stocks did witness a modest rally led by the financial sector. But the rally fizzled out in the second half but once again rebounded on next day, Tuesday, 24 February, 2009.
On Tuesday, Fed Chairman Bernanke finished his semiannual testimony in front of the Senate Banking Committee. The testimony continued to dominate financial news coverage. Bernanke noted in his remarks that measures taken by the Federal Reserve, other U.S. government entities, and foreign governments have helped restore a degree of stability to some financial markets. However, he noted that first banks have to be stabilized and then only overall development despite a range of lower borrowing costs, significant stresses persist in many markets.
JP Morgan and GE were two big names on Wall Street that announced dividend cuts during the week. General Electric cut its long-standing dividend to $0.10 from $0.31 to save nearly $8.9 bln a year. JPMorgan reduced its dividend to $0.05 from $0.38 to retain $5 billion in additional common equity per year. But the company said that its first quarter performance to date has been "solidly profitable'.
In the US market on Friday, 27 February, 2009, stocks ended in the red. Market started the day in the red and limped in the same for the entire day. The Dow Jones Industrial Average ended lower by 119 points at 7,062, the Nasdaq closed lower by 13.7 points at 1,377 and the S&P 500 closed lower by 17.7 points at 735.
Stocks started losing steam on Friday after reports that Citigroup has decided to offer common shares for up to $27.5 billion in existing preferred equity at a conversion price of $3.25 per share. The government will match this exchange to a maximum of $25 billion face value of its preferred stock. The transaction is expected to increase Citigroup's tangible common equity, but it also gives the government a 36% stake in the company.
In the earnings arena, retailers Gap and Kohls reported worse than expected earnings. Dell's results were at par with other tech companies.
Among major economic reports scheduled for the day, fourth quarter GDP was revised lower to reflect an annual rate of -6.2% versus a previously estimated -3.8%. The decrease in fourth quarter activity primarily reflected negative contributions from exports, personal consumption expenditures, equipment and software, and residential fixed investment. The report once again questioned the demand for oil in the coming months. That marked the steepest drop in GDP since 1982.
On Friday, crude-oil futures for light sweet crude for April delivery closed at $44.76/barrel (lower by $0.46 or 1%) on the New York Mercantile Exchange. For the week, crude ended higher by 12%. For the month of February, crude prices ended higher by 1.5%.
Among major economic reports for the week, durable Goods Orders ex-transportation dropped a larger-than-expected 2.5% in January, more than the -2.2% consensus estimate. The prior month's figure was revised sharply lower to -5.5% from -3.6%. In the housing sector, new home sales dropped to an annualized rate of 309,000 units in January. That was below the 324,000 consensus estimate, 48.2% below the year-ago level and also marked a new low for records dating back to 1963.
For the year 2009, Dow, Nasdaq and S&P 500 are down by 19.5%, 12.6% and 18.6% respectively.
All eyes on Reliance Industries and Reliance Petroleum
The board of Reliance Industries will meet later today to consider absorbing its Reliance Petroleum unit, giving it direct control of the world's largest refinery complex. Reliance Industries separately said it would buy Chevron Corporation's 5% stake in Reliance Petroleum, valued at $344 million as of the close of trade on Friday, 27 February 2009. Reliance Industries said it would own 75.38% of Reliance Petroleum after buying out Chevron's stake. Mukesh Ambani is chairman of both the Reliance companies.
Meanwhile, Reliance Industries reportedly expects losses of Rs 4005 crore from sale of gas from its D-6 block in 2008/09, according to its submissions in the Bombay High Court. However, it expects profit of Rs 962 crore in 2009/10. Reliance expects to double production to 80 million metric standard cubic meters per day by December, from 40 million metric standard cubic meter per day when it starts production this month.
Sterlite Industries, part of the London-based Vedanta Group, has reportedly put in a fresh bid to acquire US copper miner Asarco LLC for $1.5 billion, much lower than $2.6 billion it offered last year.
Hero Honda Motors reported a 24% jump in its total sale for the month of February 2009, at 3,29,055 units, as compared to 2,65,431 units in February 2008.
TVS Motor Company's two-wheeler sales for February 2009 rose 13% to 1,07,301 units from 95,235 units in February 2008. Its exports grew 32% to 16,583 units in February 2009 over February 2008. Meanwhile, TVS group firms, including TVS Motor, are reportedly planning to raise Rs 200 crore by selling land in the southern city of Chennai.
Thailand's ThaiBev has reportedly initiated talks with liquor maker United Spirits, even as the latter is negotiating a minority stake sale to Diageo Plc.
Tech Mahindra may reportedly tie up with a private equity firm to launch a bid for beleagured Satyam Computer Services.
The board of Dewan Housing Finance Corporation will meet on 6 March 2009 to consider raising funds via a rights issue of shares.
Daily News Roundup - March 2 2009
Reliance Industries says it would merge its wholly-owned subsidiary, Reliance Petroleum, with it to create an integrated company in oil refining and petrochemicals.(FE)
Reliance Industries plans to ramp up production of gas from its D6 block in the KG basin in Bay of Bengal far faster than estimated earlier.(DNA)
ONGC is planning an IPO of its subsidiary, which is building the Rs124bn petrochemical plant at Dahej in 2011, even as it agreed to give GAIL (India) a 19% stake in the project.(FE)
Chevron Corp, which holds a 5% stake in Reliance Petroleum, is likely to exit the company.(BL)
GAIL (India) signs pact for gas supply to four fertilizer units.(BL)
Company Law Board is not in favour of superseding the board of Maytas Infra.(FE)
Petronet LNG plans to mobilise Rs22bn from the domestic and external markets to part-finance its captive port with re-gassification facilities at Kochi.(BL)
Hero Honda February sales rise 24% to 329,055 units. (BS)
TVS Motors February sales rose 13% to 107,301 units. (BS)
Union Bank, PNB cut rates on car, home loans.(BL)
GMR group has signed an agreement with Malaysian Airlines to set up an Rs4bn MRO facility at the Aerospace Park near the Rajiv Gandhi International Airport in Hyderabad.(BL)
ICRA revises Tata Motor Finance to A1. (BS)
Shareholders of Zenotech, an associate company of Ranbaxy, have moved the Chennai High Court against the "low" open offer price quoted by Daiichi to acquire more Zenotech shares. (BS)
Shoppers Stop shut three of its unprofitable book stores 'Crossword' and airport store 'Stop & Go' in the country. (BS)
Sterlite cuts bid for US Asarco to US$1.5bn. (ET)
Unitech in talks with Oriental Bank of Commerce to sell its office building in Sake in New Delhi. (ET)
Tech Mahindra plans to launch a bid for Satyam jointly with a private equity fund. (ET)
Infosys cuts 5% of workforce at Australian unit. (ET)
TVS Group to raise Rs2bn via land sale. (ET)
Bidding for Satyam Computer not to be restricted to domestic companies but also open to international companies. (BL)
Reliance Industries’ gas production facility at the KG basin will supply gas to fertiliser, power and steel plants across the country in a couple of weeks.(TOI)
MTNL to launch 3G in Mumbai by April. (BS)
Raymond plans to have a 50 strong store network in Middle-East and SAARC markets by 2012. (ET)
BHEL dispatches the boiler drum for the first unit of 2x500 mw thermal project of NTPC TN energy company coming up in Thiruvallur district. (ET)
Orissa Sponge Iron to Coopt Monnet Ispat as strategic partner. (ET)
Ashok Leyland ties up with Bank of Baroda for extending finance to the company's end-customers. (ET)
Hindustan Motors looks for non-auto business to stay afloat. (BS)
Having bought two coal mines, one each in South Africa and Indonesia, the GMR Group is set to establish new power plants on the east and west coasts of India.(DNA)
Emami Group is planning to invest Rs 22bn for setting up a writing and printing paper manufacturing plant in West Midnapore district of West Bengal.(BL)
Coming to the rescue of new telecom licensees like Unitech Wireless, Datacom, Loop Telecom and Swan Telecom, the government has postponed and staggered the penalties liable for failing to meet year-one rollout obligations.(FE)
Moser Baer Photo Voltaic, a subsidiary of optical storage device maker Moser Baer India, said the construction of its new Chennai plant would begin in October and production from fiscal 2011.(DNA)
Power Grid Corp. of India says its board had approved investments in three transmission projects.(BL)
Honda has indefinitely put on hold opening of its Rs10bn second plant in India due to slowdown in the auto market.(FE)
BSNL launches 3G mobile services on commercial basis from 11 cities.(BL)
Forex reserves fell by US$165mn to US$250bn in the week ended February 20.(BL)
GDP expanded by 5.3% in Q3 FY09, the slowest in almost the last six years.(BL)
Government strikes deal with the RBI to receive Rs450bn of market stabilization funds in installments by March 30.(FE)
India's fiscal deficit for the April-Jan period stood at $52bn, or 80.5% of an upwardly revised budget target, according to a government statement.(FE)
Domestic pharma retail market has recorded nearly 15% growth in January.(TOI)
The government plans to invest upto Rs100bn annually into drug research. (ET)
Automobile companies plan their captive finance arms.(TOI)
Plan panel to review bidding guidelines for infrastructure projects.(FE)
State-run fuel retailers cut ATF rates by a further seven%, making it the 11th reduction since September last year.(FE)
Exports of garments and leather items to US & EU from April 1 to get a 2% incentive from government.(BL)
The same old story!
Things have never been more like the way they are today in history.
History is set to repeat on the bourses, as Reliance has done it again. Most analysts expect the ratio to favour RIL, though there could be a positive surprise for RPL shareholders.
Though expected, we are surprised by the timing of the proposed merger of RPL with RIL. The swap ratio may be in a range between 16:1 and 24:1 (RPL:RIL). RPL shareholders could lose out if the ratio is unfavorable. But they will get an exposure to RIL’s high profile E&P assets, retail and SEZ businesses. So, we expect RIL to rally (later than sooner).
RIL’s weightage is high in the key indices but it may not be able to counter the persistent headwinds from the global markets. Even the macro-economic outlook is getting worse by the day, which is evident in the Q3 GDP data. The government’s fiscal situation also seems to be spiraling out of control.
On the overall bourses too, we see the same old story; a weak start and later globally clues directing the proceedings.
FIIs were net sellers in the cash segment on Friday at Rs4.63bn, while the local institutions pumped in Rs6.49bn. In the F&O segment, the foreign funds were net sellers at Rs3.16bn. On Thursday, FIIs were net sellers in the cash segment at Rs2.38bn.
US stocks ended lower on Friday, capping another terrible month on a sour note after the Obama administration increased its stake in the troubled Citigroup, and revised fourth-quarter GDP figure down.
The Dow Jones Industrial Average lost 119 points, or 1.7%, to 7,062.93. It was the lowest close for the blue chip barometer since May 1997. The S&P 500 index dropped 18 points, or 2.4%, to 735.09, closing at its lowest point since Dec. 18, 1996.
The Nasdaq Composite index shed 13.5 points, or 1%, to 1,377.84. The tech-laden index has held up better than the other major averages this year and remains above its lows from Nov. 21, 2008.
The S&P 500 closed below its November lows and also below the 740-750 range that some had hoped will hold up. For the week, the broader marker indicator was down 4.5%, giving it a monthly hit of 11%.
The Dow slid 4.5% in the week and 11.7% in the month. The Nasdaq shed 4.4% during the week and 6.7% in the month.
Financials led the declines, with Citigroup down 39% on news the US government was hiking its stake in the battered bank to as much as 36%. The deal converts preferred shares that the US Treasury already holds for common shares.
It gives the bank more capital, which ideally would lead to more lending. The government had earlier given Citi US$45bn in exchange for preferred shares. Citi shares have plunged around 90% over the last year as the company has struggled to stay solvent amid the housing sector collapse and the credit crisis.
Still, Wall Street worry that Citi will ultimately have to be taken over by the government, a move that would completely wipe out shareholders.
The US economy shrank at a much faster pace in the fourth quarter than initially thought. GDP contracted at the fastest pace in 26 years on sharp declines in consumer spending, investment and exports, the government said.
GDP fell at a 6.2% seasonally adjusted annualized pace in the final three months of 2008, revised from the initial estimate of a 3.8% drop, the Commerce Department reported. It was the worst decline in GDP since a 6.4% decrease in the first quarter of 1982.
Economists had expected a revision to a 5.5% decline, based on updated monthly data on inventories, exports and other key measures.
Economists don't expect any relief in the current quarter, which ends March 31. The current projection sees first-quarter GDP falling at a 4.8% annual rate. Since 1947, GDP has never fallen by more than 4% for two quarters in a row. Most economists don't expect GDP to grow until the second half of the year.
While the report was worse than expected, it also wasn't surprising to investors, following weak readings on manufacturing, employment and consumer spending. Hence, the stock market reaction Friday was negative, but not awfully bad.
The New York Stock Exchange said it is temporarily waving its minimum price for listed stocks, due to the unprecedented stock market environment. There are 50 stocks that have traded for less than a US$100 for at least 30 days, the NYSE said. Typically, those stocks would be put under review, which could eventually lead to a delisting. Last month, the NYSE changed its market cap for listed companies to US$15 million from US$25 million. Both changes are in effect through the end of June.
In other economic news, the Chicago PMI, a regional reading on manufacturing, rose to 34.2 in February from 33.3 in January. Economists had predicted a drop in the index to 33. Any figure below 50 signals weakness in the sector.
The University of Michigan said its consumer sentiment index rose to 56.3 in February from an initially reported 56.2. Economists thought it would dip to 56.
Dell reported weaker quarterly sales and earnings late on Thursday that missed analysts' forecasts. The company also said it plans to cut an additional US$1 billion a year from its annual expenses within two years, picking up the pace on an existing cost-cutting plan. This seemed to reassure investors and shares rose almost 4%.
General Electric (GE) said that it will cut its quarterly dividend by 68% to 10 cents per share from 31 cents per share, a move the company says will save it about US$9 billion a year. GE shares lost 6.5%.
Treasury prices slipped, raising the yield on the benchmark 10-year note to 3.01% from 2.99% on Thursday.
In currency trading, the dollar gained versus the euro and fell against the yen. COMEX gold for April delivery fell 10 cents to US$942.50 an ounce.
US light crude oil for April delivery fell 46 cents to settle at US$44.76 a barrel on the New York Mercantile Exchange.
The S&P's finish was its worst since the 731.54 hit at the close of Dec. 18, 1996, with its percentage decline in February proving to be the second-worst on record following the 18.4% hit that came in 1933.
After the worst January performance in its 113-year history, the Dow tallied the index's worst February point decline, and its second-worst percentage drop since 1933, when it lost 15.6%.
The Nasdaq decline proved its worst percentage drop since 2001, when it discarded 22.67% of its value.
Another choppy day ended on in the red on Friday. Weak global cues coupled with selling pressure dragged the Indian bourses at open. After trading in a narrow range, key indices managed to stage a smart pull back in the second half finally ending the day with marginal losses. Sensex slipped 63 points to close at 8,891 and the NSE Nifty was down 22 at 2,763.
The BSE benchmark Sensex recovered nearly 170 and the NSE nifty recovered almost 60 points from their day’s low.
Shares of SREI Infra gained by 1% to Rs30 after 4.1% of equity shares of the company were traded in a single transaction. The scrip touched an intra-day high of Rs34.8 and a low of Rs29.2 and recorded volumes of over 6mn shares on NSE.
Shares of United Spirits gained by 3.3% to Rs621 after reports stated that United Spirits and Diageo Plc are still in discussions about a possible stake-sale agreement. The scrip touched an intra-day high of Rs628 and a low of Rs595 and recorded volumes of over 2.1mn shares on BSE.
Shares of Shoppers Stop have declined by a percent to Rs86 after the company announced that it closed three crossword book stores. The scrip touched an intra-day high of Rs86 and a low of Rs83 and recorded volumes of over 8,000 shares on BSE.
Shares of ONGC declined by over 3.5% to Rs690 after reports stated that the company shut a platform in the Bombay High offshore field reducing gas output by 40%. The scrip touched an intra-day high of Rs720 and a low of Rs621 and recorded volumes of over 3.2mn on BSE.
Shares of HDFC surged by 5% to Rs1271 after 1.12mn equity shares changed hands in two trades. The scrip touched an intra-day high of Rs1275 and a low of Rs1200 and recorded volumes of over 1.9mn shares on BSE.
Shares of Mphasis erased early gains and slipped by 1.6% to Rs168. The group revenues increased by 58.1% to Rs9.8bn for the quarter ended January 31 from Rs6.1bn for the corresponding quarter I the previous year.
Operating profit during the quarter ended January 31 was Rs2.1bn a growth of 246.6% as compared to operating of Rs608mn in the same period a year ago. The scrip touched an intra-day high of Rs177and a low of Rs158nd recorded volumes of over 0.5mn shares on BSE.
The markets have fresh news to ponder and speculate on. Reliance Industries has done it again and finally announced a board meeting to mull merger with Reliance Petroleum. With Fortune 500 companies coming down in value, mergers will like may well create the balance sheet size that Indian conglomerates desire. All said and done, bulls and bears may hardly March anywhere this F&O series.
Asian Markets crumble
Asian markets : Nikkei 3.2% down, Hang Seng : 3.71% down, Straits Times: 3.27% down
Bullion metals end mixed
Gold gains 7.5% in February, 2009
Bullion metal prices ended marginally lower on Friday, 27 February, 2009. Prices fell as traders anticipated that economy will recover in the coming months and this decreased the appeal of the precious metals.
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 April delivery fell $0.1 (0.01%) to close at $942.5 an ounce on the New York Mercantile Exchange. For the week, gold ended lower by 6%. For the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%. Year to date, gold prices are higher by 8.5%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (8%) since then.
On Friday, Comex silver futures for March delivery rose 13.5 cents (1%) to end at $13.085 an ounce. Year to date, silver has climbed 18.5% this year. For 2008, silver had lost 24%.
The World Gold Council reported in February that demand for gold surpassed $100 billion last year for the first time ever, amid increased industrial and jewelry consumption and investors' purchase of the metal as a safe haven. Gold demand - including jewelry consumption, industrial demand and identifiable investments such as bars, coins and gold exchange-traded funds - hit $102 billion in 2008, up 29% from a year ago. In tonnage terms, gold demand rose 4% to 3,659 tons.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Crude falls on GDP data
Prices rise 12% for the week
Oil prices ended lower for the first time in four days on Friday, 27 February, 2009. Prices fell after preliminary fourth quarter GDP report showed that the US economy contracted more than expected in US.
On Friday, crude-oil futures for light sweet crude for April delivery closed at $44.76/barrel (lower by $0.46 or 1%) on the New York Mercantile Exchange. For the week, crude ended higher by 12%. For the month of February, crude prices ended higher by 1.5%.
Prices reached a high of $147 on 11 July, 2008 but have dropped almost 69% since then. Year to date, in 2009, crude prices are higher by 4%. On a yearly basis, crude prices are lower by 63%.
On Friday, in US, fourth quarter GDP was revised lower to reflect an annual rate of -6.2% versus a previously estimated -3.8%. The decrease in fourth quarter activity primarily reflected negative contributions from exports, personal consumption expenditures, equipment and software, and residential fixed investment. The report once again questioned the demand for oil in the coming months.
EIA had reported earlier during the week that U.S. gasoline consumption during the past four weeks rose 1.7% from a year ago. Gasoline inventories fell by 3.4 million barrels.
EIA had also reported that crude inventories rose by 700,000 barrels to 351.3 million during last week. Market had expected a rise of more than 2 million barrels. Total products supplied over the past four weeks, including gasoline, diesel and jet fuel, averaged 19.7 million barrels per day, down 0.8% from a year ago. Excluding jet fuel, total products supplied rose slightly.
Prices had been sliding since past couple of months after fear gripped the US economy that US banks might be nationalized.
OPEC has been trying to cut production consistently in order to step up prices from their current low levels. During the last weekend, Algerian Energy Minister Chakib Khelil said that OPEC is likely to reduce output in March, 2009. OPEC has already agreed to cut cartel quotas by 4.2 million barrels a day since September, equivalent to about 5% of global oil demand. The cartel is supposed to meet on 15 March at Vienna.
Against this background, April reformulated gasoline fell 1.2% to $1.3725 a gallon and April heating oil dropped 2% to $1.2675 a gallon.
Natural gas for April delivery also rose 3.1% to $4.203 per million British thermal units. It fell to $3.916 earlier, the lowest level since November, 2002.
Kirloskar Brothers
We recommend a buy in Kirloskar Brothers stock from a short-term trading perspective. It is evident from the charts of Kirloskar Brothers that it had been on a long-term downtrend from its January 2008 high of Rs 520 to its January 2009 low of Rs 59. However, the stock reversed direction, triggered by prolonged positive divergence displayed in the weekly relative strength index (RSI) as well as weekly moving average convergence and divergence (MACD) indicator. The stock ha s been on a medium-term uptrend from its January low.
On February 27, the stock conclusively broke through its long-term down trendline and 50-day moving average by gaining 10 per cent, with heavy volumes.
The daily RSI has entered in to the bullish zone and the weekly RSI has entered in to the neutral region from the bearish zone. The daily MACD is on the verge of entering in to the positive territory.
Our short-term forecast is bullish on the stock. We expect it to move up until it hits our price target of Rs 89 in the upcoming trading sessions. Traders with short-term perspective can consider buying the stock while maintaining a stop-loss at Rs 76.
Reliance Industries - RPL Merger impact
The Reliance Industries board will meet on Monday to consider the merger of Reliance Petroleum with the mothership, which will catapult the merged entity into the list of the world's top 50 profitable companies. DNA Money looks at what it means:
18:1 SWAP RATIO?
Historically every company that Reliance Industries Ltd has floated has been folded into the mothership at some stage. This way, the promoters have always been able to increase their stake in the mothership.
The merger ratio, therefore, is more likely to favour RIL than RPL. Again, speaking of history, RIL has set the swap ratios for earlier mergers at a CAGR of 8-10% from IPO price. RPL's IPO (in April 2006) was priced at Rs 60. The RPL share price on Friday was Rs 76 (exactly at 8% CAGR). A 10% CAGR would mean a share price of Rs 80. Given this, the swap should at best be around 18:1, said Kunal Bhakta, director, Foster Capital Ventures.
THIN ARBITRAGE FOR TRADERS
Basically, whenever a merger is announced and the swap ratio becomes public, the shares of the company that will cease to exist typically trades at a discount to the implied swap ratio. The arbitrage opportunity in the extinguishing company's share depends on liquidity.
"On Monday morning , initially both stocks will react positively in the region of 2-4% because there will always be two schools of thought in terms of which company will benefit more," said Bhakta. He expects discount (arbitrage window) will be around 2.5% to 3%. "Even if it touches 4%, it will come back to those levels converging with time, tangoing the process or sequence of merger," Bhatka said.
MERGER BY APRIL END
The first step for RIL will be to seek legal sanction for the merger. The high court will hear the application in a week at the earliest. The court is then expected to ask RIL to get approval from shareholder. A notice for an extraordinary general meeting will have to be sent 21 days before it is held as per Companies' Act. So net-net, the merger could be consummated legally by April-end, said analysts.
EARNINGS & REFINING CYCLE
RPL's cash flows are seen helping RIL's capital expenditure plans because RPL is more efficiently structured in terms of cash flows, analysts said. However, while the deal would bring much-needed liquidity in the short term, it also makes RIL less attractive to those who do not want to invest in a cyclical, commoditised business.
RIL already earns two-thirds of its revenues from refining, an industry that is facing a multi-year cyclical downturn. This merger would double RIL's refining capacity, thereby making its non-refining revenues negligible.
This will tie RIL's fortunes more closely to the refining cycle, which is globally entering a stage of depression. On the positive side, there will be a huge contribution to RIL's bottomline from sale of Krishna Godavari gas. The company, which pays only a 11% minimum alternate tax, can now use the depreciation from RPL plant to lower the profit of the combined entity and save on tax.
SEZ & TAX HOLIDAYS
The merger is unlikely to have any impact on the tax holidays enjoyed by RPL, since they are bestowed upon the refining unit operating inside the special economic zone, rather than on RPL as a company. The tax benefits are expected to continue without any change. However, it will have an indirect beneficial impact due to the transfer of depreciation of RPL's plants to RIL's profit & loss accounts.
via DNA
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