IDFC
Wednesday, March 18, 2009
Sensex ends firm; DLF soars 7.76%
The Sensex shed some of its gains towards the close due to some profit booking seen in select frontliners. Realty stocks outperformed all other stocks. Metal, consumer goods and banking stocks also supported the upmove.
The 30-share index, BSE Sensex opened with a gain of 92.48 points, at 8,956.30 on Wednesday on strong global cues. As the day progressed, the Sensex marched ahead breaching the mark of 9,000 and has touched a high of 9,120.46 on sustained buying witnessed across board. Moreover the opening of European markets supported the sentiment. However, it pared some gains as profit booking was seen during the close.
Secondline stocks also performed well. BSE Midcap index and Smallcap index rose 2.36% and 1.80% respectively.
Amongst the sectors, BSE Realty gained the most. The counter soared 7.65%, Metal and Consumer surged over 3% each and Bankex rose 2.63%.
On global front, Asian stocks gained, after the Bank of Japan said it will buy more bonds from banks to spur lending. Mizuho Financial Group rose 3% in Tokyo as the central bank pledged to increase debt purchases and provide loans to banks. Japanese benchmark index Nikkei advanced 23.04 points, or 0.29%, to end at 7,972.17.Hong Kong`s Hang Seng index climbed 239.08 points, or 1.86%, to close at 13,117.17 and China`s Shanghai Composite increased 5.40 points, or 0.24%, to settle at 2,223.72.
Meanwhile, European stocks rose, as investors speculated central banks will increase efforts to buoy the economy.UK`s benchmark index FTSE 100 dropped 13.47 points, or 0.35%, to trade at 3,843.63, French benchmark index CAC 40 gained 18.99 points, or 0.69%, to trade at 2,786.27 and Germany`s benchmark index DAX advanced46.25 points, or 1.16%, to trade at 4,034.02. (4.17p.m., IST)
The Sensex ended the day with a gain of 112.86 points, or 1.27% at 8,976.68 after touching a high of 9,120.46 and a low of 8,951.32. The broad-based NSE Nifty climbed 37.25 points, or 1.35% at 2,794.70 after hitting a high of 2,836.05 and a low of 2,752.25.
Major gainers in the 30-share index were DLF (7.76%), Jaiprakash Associates (6.46%), Tata Steel (4.54%), Bharat Heavy Electricals (4.28%), Reliance Energy (3.51%), and ICICI Bank (3.41%).
On the other hand, Mahindra & Mahindra (4.09%), Tata Power Company (2.40%), ITC (2.11%), ACC (1.46%), Housing Development Finance Corporation (0.76%), and Hindustan Unilever (0.45%) were the major losers in the Sensex.
Overall market breadth was sharply positive. Out of the total 2,590 stocks traded at BSE, 1,552 advanced, 930 declined while 108 remained unchanged.
BSE Bulk Deals to Watch - March 18 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
18/3/2009 523204 ABAN OFFSHO ABHI AMBI FINANCIAL SERVICES LTD B 197337 304.97
18/3/2009 532799 AKRUTI CITY OPG SECURITIES P LTD B 629794 1838.24
18/3/2009 532799 AKRUTI CITY OPG SECURITIES P LTD S 629794 1839.01
18/3/2009 512273 ARONI COMM FOUR DIMENSIONS SECURITIES INDIA LTD B 552300 31.00
18/3/2009 512273 ARONI COMM ASHWIN KUMAR KOTHARI HUF S 105500 31.00
18/3/2009 512273 ARONI COMM TEJALROHITKOTHARI S 133000 31.00
18/3/2009 512273 ARONI COMM ASHWIN KUMAR KOTHARI SMALLER HUF S 79800 31.00
18/3/2009 512273 ARONI COMM ROHITASHWINKOTHARI S 49000 31.00
18/3/2009 512273 ARONI COMM MEENAASHWINKOTHARI S 59000 31.00
18/3/2009 512273 ARONI COMM ASHWINPANNALALKOTHARI S 120500 31.00
18/3/2009 512273 ARONI COMM PAYASH SECURITIES P. LTD S 55000 29.59
18/3/2009 590061 BRUSHMAN IND IVORY CONSULTANTS PVT LTD. B 147000 17.15
18/3/2009 533055 EDSERV SOFT NIRMAN MANAGEMENT SERVICES PVT LTD B 63020 35.19
18/3/2009 533055 EDSERV SOFT NIRMAN MANAGEMENT SERVICES PVT LTD S 115951 32.31
18/3/2009 532876 EVERONN SYS MBL AND COMPANY LIMITED B 202199 157.76
18/3/2009 532876 EVERONN SYS MEENAXI KISHORE BHATIA B 112000 154.51
18/3/2009 532876 EVERONN SYS MATRIX EQUITRADE PVT. LTD. B 205637 160.42
18/3/2009 532876 EVERONN SYS OPG SECURITIES P LTD B 561511 156.75
18/3/2009 532876 EVERONN SYS MANSUKH STOCK BROKERS LTD. B 84455 157.39
18/3/2009 532876 EVERONN SYS PRABHUDAS LILLADHER PVT. LTD. B 84942 160.38
18/3/2009 532876 EVERONN SYS SAM GLAOBAL SECURITIES LTD B 101441 159.01
18/3/2009 532876 EVERONN SYS H.J. SECURITIES PVT. LTD. B 195937 158.52
18/3/2009 532876 EVERONN SYS NAVEEN TAPARIA B 80216 158.09
18/3/2009 532876 EVERONN SYS MBL AND COMPANY LIMITED S 202199 158.09
18/3/2009 532876 EVERONN SYS MEENAXI KISHORE BHATIA S 112000 160.90
18/3/2009 532876 EVERONN SYS MATRIX EQUITRADE PVT. LTD. S 205637 160.67
18/3/2009 532876 EVERONN SYS OPG SECURITIES P LTD S 561511 156.91
18/3/2009 532876 EVERONN SYS MANSUKH STOCK BROKERS LTD. S 84276 157.59
18/3/2009 532876 EVERONN SYS NETEQUITY VENTURES PRIVATE LIMITED S 114200 155.76
18/3/2009 532876 EVERONN SYS PRABHUDAS LILLADHER PVT. LTD. S 84942 160.60
18/3/2009 532876 EVERONN SYS SAM GLOBAL SECURITIES LTD S 101441 159.20
18/3/2009 532876 EVERONN SYS H.J. SECURITIES PVT. LTD. S 195937 158.61
18/3/2009 532876 EVERONN SYS NAVEEN TAPARIA S 80216 157.29
18/3/2009 532612 INDOCO REM HSBC UNIQUE OPPORTUNITIES FUND S 89874 112.00
18/3/2009 505840 JAIPAN INDUS KAILASH CHHAPARWAL B 66000 42.50
18/3/2009 505840 JAIPAN INDUS BHUPENDRA RAMESHCHANDRA JAIN S 40000 42.50
18/3/2009 532771 JHS SVEN ADVENT ADVISORY SERVICES PVT LTD B 300000 12.60
18/3/2009 532771 JHS SVEN SANJAY JAGDISH PODDAR S 300000 12.60
18/3/2009 511092 JMD TELEFILM NEHAL HASMUKHRAI GANDHI B 50000 41.40
18/3/2009 511092 JMD TELEFILM JOHARPALSINGH S 44500 41.40
18/3/2009 511092 JMD TELEFILM MILAN MUKHERJEE S 5000 41.40
18/3/2009 530955 KAILASH FICO ALPHA GRAPHIC INDIA LTD B 100000 26.50
18/3/2009 532092 KIRTI FINVES B A ANIL KUMAR B 273000 0.27
18/3/2009 511728 KZLEASING BHARATKUMAR N VACCHANI B 76132 73.85
18/3/2009 511728 KZLEASING RAMESH G GOKANI B 29835 73.98
18/3/2009 511728 KZLEASING NAINESH HIMAT JATANIA B 42000 74.11
18/3/2009 511728 KZLEASING BHAGWATIBEN I. PANCHMATIA B 20000 73.70
18/3/2009 511728 KZLEASING YOGESH G PANDYA S 85000 73.75
18/3/2009 511728 KZLEASING AMI STOCK SHARE BROKERS PLTD S 58000 74.14
18/3/2009 511728 KZLEASING NAINESH HIMAT JATANIA S 42000 73.82
18/3/2009 514242 MH MILLS & I AABHAR HOLDINGS PVT LTD B 162900 4.46
18/3/2009 514242 MH MILLS & I MALIBU KAPITAL LTD S 160000 4.46
18/3/2009 570002 PANTALBNDVR BENNETT COLEMAN AND COMPANY LTD S 365000 90.00
18/3/2009 531583 RAP MEDIA NILU SANJAY PODDAR B 50213 15.50
18/3/2009 531583 RAP MEDIA SANJAY JAGDISH PODDAR S 50213 15.50
18/3/2009 531898 SANGUINE MD LUHARUKA EXPORTS PVT LTD B 434700 2.38
18/3/2009 531898 SANGUINE MD SUVIDHA SECURITIES PVT LTD S 434700 2.38
18/3/2009 523838 SIMPLX INFRA BIRLA SUN LIFE INSURANCE CO LIMITED B 900000 125.00
18/3/2009 532332 SOFTPRO SYSL SANJAY JAGDISH PODDAR B 90000 57.00
18/3/2009 532332 SOFTPRO SYSL ADVENT ADVISORY SERVICES PVT LTD S 90000 57.00
18/3/2009 512048 SPLASH MEDIA KAMLESH NAHAR B 11185 108.95
18/3/2009 514140 SURYAVANSH ADVENT ADVISORY SERVICES PVT LTD B 150000 7.00
18/3/2009 514140 SURYAVANSH SANJAY JAGDISH PODDAR S 150000 7.00
18/3/2009 519228 TEMPT.FOODS INDIABULLS FINANCIAL SERVICES LTD S 573208 19.73
18/3/2009 526775 VALIANT COMM* OSTRICH ESTATE PRIVATE LIMITED S 83000 23.30
18/3/2009 532401 VIJAYA BANK CITIGROUP GLOBAL MAKERTS MAURITIUS PVT LTD B 5000000 19.85
18/3/2009 532401 VIJAYA BANK MNYL LIFE MAKER INVESTMENT PLAN ENDOWMENT FD AC UL LIFE GROWTH FD B 3765000 19.85
18/3/2009 532401 VIJAYA BANK BIRLA SUNLIFE INSURANCE CO LTD B 5000000 19.85
18/3/2009 532401 VIJAYA BANK BAJAJ ALLIANZ LIFE INSURANCE CO LTD B 7607800 19.85
18/3/2009 532401 VIJAYA BANK TCI CYPRUS HOLDING LIMITED S 24889424 19.86
18/3/2009 514470 WINSOME TEXT KUMKUM STOCK BROKER PVT LTD B 37634 30.25
18/3/2009 514470 WINSOME TEXT SANDEEP S SABOO B 30000 29.00
18/3/2009 514470 WINSOME TEXT KUMKUM STOCK BROKER PVT LTD S 48050 29.40
NSE Bulk Deals to Watch - March 18 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
18-MAR-2009,ABAN,Aban Offshore Ltd.,P R B SECURITIES PRIVATE LTD,BUY,191537,306.54,-
18-MAR-2009,ALPSINDUS,Alps Industries Ltd.,KISHAN KUMAR AGARWAL,BUY,200000,6.84,-
18-MAR-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,BUY,86872,32.54,-
18-MAR-2009,EDSERV,Edserv Softsystems Limite,DKG SECURITIES PVT. LTD.,BUY,21185,35.26,-
18-MAR-2009,EDSERV,Edserv Softsystems Limite,NIRMAN MANAGEMENT SERVICES,BUY,22485,36.82,-
18-MAR-2009,EDSERV,Edserv Softsystems Limite,VAIBHAV DOSHI,BUY,216361,35.34,-
18-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,143473,1984.09,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,ADROIT FINANCIAL SERVICES PVT LTD,BUY,231547,158.33,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,AMBIT SECURITIES BROKING PVT. LTD.,BUY,129632,158.41,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,AMITKUMAR S. KORADIA,BUY,105000,155.58,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,ARCHITA C GADA,BUY,120542,156.92,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,C D INTEGRATED SERVICES LTD,BUY,358318,158.84,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,CPR CAPITAL SERVICES LTD.,BUY,130254,155.05,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,DHYAN SECURITIES PVT LTD,BUY,96081,159.21,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,DINESH MUNJAL(HUF),BUY,198106,159.05,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,G RAMAKRISHNA,BUY,193095,157.18,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,GENUINE STOCK BROKERS PVT LTD,BUY,489201,157.22,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,GHALLA BHANSALI STOCK BROKERS PVT. LTD.,BUY,113189,158.96,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,HARBUX SINGH SIDHU,BUY,415358,158.21,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,132048,159.24,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,MANIPUT INVESTMENTS PVT LTD,BUY,291711,159.71,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,BUY,140873,157.67,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,MEENAXI KISHORE BHATIA,BUY,129000,154.49,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,NAMAN SECURITIES & FINANCE PVT LTD,BUY,85713,156.77,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,OM INVESTMENTS,BUY,484250,159.27,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,PRASHANT JAYANTILAL PATEL,BUY,178446,156.77,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,R APPALA RAJU,BUY,275000,156.76,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,R BABY,BUY,139000,159.62,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,SANDHYA GUPTA,BUY,84388,162.97,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,SMART EQUITY BROKERS PRIVATE LIMITED,BUY,117301,157.90,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,SMC GLOBAL SECURITIES LTD.,BUY,85736,159.67,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,TRANSGLOBAL SECURITIES LTD.,BUY,326169,158.07,-
18-MAR-2009,ICSA,ICSA (India) Limited,NIRSHILP SECURITIES PVT. LTD.,BUY,156033,69.93,-
18-MAR-2009,ICSA,ICSA (India) Limited,TRANSGLOBAL SECURITIES LTD.,BUY,415435,69.78,-
18-MAR-2009,JBFIND,JBF INDUSTRIES LTD,ARYA BHAGIRATH C,BUY,1470000,31.90,-
18-MAR-2009,JBFIND,JBF INDUSTRIES LTD,JAMISH INVESTMENT PVT LTD.,,BUY,712681,30.00,-
18-MAR-2009,JBFIND,JBF INDUSTRIES LTD,NIMISH SHAH,BUY,800000,30.00,-
18-MAR-2009,ABAN,Aban Offshore Ltd.,P R B SECURITIES PRIVATE LTD,SELL,192337,306.31,-
18-MAR-2009,ALPSINDUS,Alps Industries Ltd.,RAKESH GUPTA,SELL,174508,6.84,-
18-MAR-2009,BOMDYEING,Bombay Dyeing & Mfg Co.,GMO EMERGING MARKETS FUND,SELL,202591,127.81,-
18-MAR-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,SELL,86872,32.58,-
18-MAR-2009,EDSERV,Edserv Softsystems Limite,DKG SECURITIES PVT. LTD.,SELL,165799,34.66,-
18-MAR-2009,EDSERV,Edserv Softsystems Limite,EPOCH SYNTHETICS PVT LTD,SELL,75774,30.77,-
18-MAR-2009,EDSERV,Edserv Softsystems Limite,NIRMAN MANAGEMENT SERVICES,SELL,301812,31.46,-
18-MAR-2009,EDSERV,Edserv Softsystems Limite,VAIBHAV DOSHI,SELL,216361,34.08,-
18-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,143473,1985.13,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,ADROIT FINANCIAL SERVICES PVT LTD,SELL,231547,158.22,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,AMBIT SECURITIES BROKING PVT. LTD.,SELL,129630,158.41,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,AMITKUMAR S. KORADIA,SELL,105000,156.80,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,ARCHITA C GADA,SELL,120542,157.41,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,C D INTEGRATED SERVICES LTD,SELL,358318,158.94,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,CPR CAPITAL SERVICES LTD.,SELL,130254,155.14,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,DHYAN SECURITIES PVT LTD,SELL,96081,159.03,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,DINESH MUNJAL(HUF),SELL,198106,159.89,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,G RAMAKRISHNA,SELL,193095,158.20,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,GENUINE STOCK BROKERS PVT LTD,SELL,489201,157.25,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,GHALLA BHANSALI STOCK BROKERS PVT. LTD.,SELL,113189,158.80,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,HARBUX SINGH SIDHU,SELL,415358,158.69,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,132048,159.32,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,MANIPUT INVESTMENTS PVT LTD,SELL,291711,159.78,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,SELL,140873,157.47,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,MEENAXI KISHORE BHATIA,SELL,129000,161.29,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,NAMAN SECURITIES & FINANCE PVT LTD,SELL,85708,156.53,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,NETEQUITY VENTURES PRIVATE LIMITED,SELL,135800,155.54,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,OM INVESTMENTS,SELL,480890,159.40,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,PRASHANT JAYANTILAL PATEL,SELL,178446,156.91,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,R APPALA RAJU,SELL,275000,157.58,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,R BABY,SELL,139000,159.10,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,SANDHYA GUPTA,SELL,84388,163.21,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,SMART EQUITY BROKERS PRIVATE LIMITED,SELL,117301,158.08,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,SMC GLOBAL SECURITIES LTD.,SELL,85736,159.78,-
18-MAR-2009,EVERONN,Everonn Systems India Lim,TRANSGLOBAL SECURITIES LTD.,SELL,326666,157.92,-
18-MAR-2009,ICSA,ICSA (India) Limited,NIRSHILP SECURITIES PVT. LTD.,SELL,237633,69.91,-
18-MAR-2009,ICSA,ICSA (India) Limited,TRANSGLOBAL SECURITIES LTD.,SELL,436579,69.85,-
18-MAR-2009,INDOCO,Indoco Remedies Limited,HSBC UNIQUE OPPURTUNITIES FUND,SELL,71226,112.01,-
18-MAR-2009,JBFIND,JBF INDUSTRIES LTD,JAMISH INVESTMENT PVT LTD.,,SELL,712681,31.90,-
18-MAR-2009,JBFIND,JBF INDUSTRIES LTD,NIMISH SHAH,SELL,800000,31.94,-
18-MAR-2009,JBFIND,JBF INDUSTRIES LTD,TRIPLE M INVESTMENTS LIMITED,SELL,1832545,30.02,-
18-MAR-2009,PRETAILDVR,Class B shares (Series 1),BENNETT COLEMAN & COMPANY LTD,SELL,325000,90.01,-
Post Session Commentary - March 18 2009
Indian market ended today in green zone on sustained buying in key stocks. Though, market came off the day’s high after a sharp surge ahead of the closing of the two day US Federal Reserve meeting. Strong cues form the global markets contributed to the rally in domestic bourses. Asian markets closed with good gains tracking Wall Street gains overnight. Along with this, positive trend in European markets also contributed to the northward journey.
The market opened on pleasant note mirroring firm global cues. The US stock markets on Tuesday ended higher on the back of surprise increase in the February housing starts and building permits. Further, domestic stocks continued to gain ground on significant buying led by strong sentiments. However, during final trading hours benchmark indices observed some dive from day’s high as investors booked gains after a decent journey. Finally market ended with growth despite giving up some gains from the day''s high. BSE Sensex breached 9,000 mark during trading but finally retreated from that level and NSE Nifty ended around 2,800 level after breaking 2,800 during the trading. From the sectoral front, traders on-loaded position across majority of sectors. Besides, Reality, Metal, Capital Goods, Bank, Oil & Gas, Consumer Durable and Power stocks were in limelight as witnessed most of the buying from these baskets. Further, BSE Mid Cap and Small Cap stocks also closed with decent gains. However, offloading was seen only in FMGC stocks.
Among the Sensex pack 23 stocks ended in green territory and 7 in red. The market breadth indicating the overall health of the market remained strong as 1552 stocks closed in green while 930 stocks closed in red and 108 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 112.86 points at 8,976.68 and NSE Nifty ended up by 37.25 points at 2,794.70. BSE Mid Caps and BSE Small Caps ended with gains of 63.55 and 54.17 points at 2,759.90 and 3,064.48 respectively. The BSE Sensex touched intraday high of 9,120.46 and intraday low of 8,951.32.
Gainers from the BSE Sensex pack are DLF Ltd (7.76%), JP Associates (6.46%), Tata Steel (4.54%), BHEL (4.28%), Reliance Infra (3.51%), ICICI Bank (3.41%), Sterlite Industries (3.13%), Hindalco (3.09%), L&T Ltd (3.05%), Tata Motors (2.56%) and Reliance (2.38%).
Losers from the BSE Sensex pack are M&M Ltd (4.09%), Tata Power (2.40%), ITC Ltd (2.11%), ACC Ltd (1.46%), HDFC (0.76%), HUL (0.45%) and Bharti Airtel (0.33%).
International Monetary Fund (IMF) said on Tuesday that India’s economy is slowing considerably and uncertainty surrounding the outlook in unusually large. The IMF predicted the India’s gross domestic product growth may slow to 6.3 per cent in the fiscal year 2008-2009, ending in March, and to 5.3 per cent the following year. That would be lower than the 9 per cent growth rate in the 2007-2008 year.
On the global markets front the Asian markets which opened before the Indian market, ended in green led by financial and auto companies. Bank of Japan today kept interest rates unchanged at 0.1% at a policy meeting but said it may provide subordinated loans to help banks replenish capital. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended higher by 5.40, 239.08, 23.04, 16.91 and 6.07 points at 2,223.72, 13,117.17, 7,972.17, 1,575.94 and 1,169.95 respectively.
European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading up by 53.16 points at 4,040.93 and in London FTSE 100 is trading slightly higher by 0.93 points at 3,858.03.
The BSE Reality index outperformed the benchmark indices as ended up by (7.65%) or 112.51 points at 1,584.05 on hopes lower rates will spur housing demand. Gainers are Akruti City (27.53%), Orbit Co (17.91%), Mahindra Life (8.42%), DLF Ltd (7.76%) and Penland Ltd (6.68%).
The BSE Metal stocks also witnessed rally as advanced by (3.47%) or 172.56 points to close at 5,146.58 on rise in metal prices on London Metal Exchange. Major gainers are Welspan Gujarat SR (13.78%), Hindustan Zinc (5.68%), Steel Authority (5.19%), Tata Steel (4.54%) and Jindal Steel (3.72%).
The BSE Capital Goods index gained (3.18%) or 187.60 points to close at 6,084.40. Main gainers are Walchand In (15.81%), Kalpat Power T (12.21%), Elecon Eng C (10%), Havells India (8.33%) and Gammon Indi (7.81%).
The BSE Bank index closed with increase of (2.63%) or 105.23 points at 4,110.99 on rally in bond yield and on hopes lower interest rates may boost investors’ sentiments. Scrips that gained are Federal Bank (9.97%), Bank of Baroda (4.79%), Axis Bank (4.74%), Punjab National Bank (3.85%) and Oriental Bank (3.43%).
The BSE Consumer Durable index ended higher by (1.73%) or 26 points to close at 1,531.47. Rajesh Export (8.39%), Gitanjali GE (2.41%), Videocon Ind (1.34%), Titan Ind (1.11%) and Blue Star L (0.84%) ended in positive territory.
The BSE FMCG index lost (1.14%) or 22.19 points to close at 1,924.08. Losers are United Spr (2.73%), Godrej Cons (2.72%), ITC Ltd (2.11%), Tata Tea Ltd (1.21%) and Colgate Palm (0.08%).
Tata Motors advanced by 2.56%. The company on Wednesday said it has entered into an agreement with Andhra Bank for financing its range of passenger vehicles, which will provide an added facility of car finance to its customers. Tata Motors said that this deal is based on the bank''s wide reach with a large industrial as well as retail clientele.
Satyam Computer gained 0.80% on report that the company received a fresh order from a food company based in Europe. In the latest development, the Board has placed norms for the winner of the bid, including no sale of the company''s assets for 3 years, not to pledge them to raise debt, no sudden lay-off of employees and should hold enough cash to infuse immediately.
Videocon Industries increased by 1.34%. The company has decided to hold its incursion into the mobile phones category by a year. It has also decided to put on hold its plan for a consumer electronics retail foray across West Asia, Europe, Africa and Latin America under the brand name ‘VC’. Reason behind the decision is current market condition and economic turmoil.
State Bank of India rose 1.20%. The bank is attracting the private bank customers after it launched the special housing loan schemes recently at 8% interest rate. This rate has prompted passage of customers of some private banks to SBI.
Maytas Infra Ltd (MIL) gained 3.98%. It has requested the government to grant more time for achieving financial closure for Metro Rail Project.
Asian stocks mostly advance
Strong overnight cues continue to lift regional benchmarks
Asian stocks mostly advanced on continued buying support as strong overnight cues from the US markets pepped up the sentiments and gains in banking and financials lifted the benchmarks in the region. US stocks surged yesterday, helped by news February 2009 housing starts increased 22.2% to a seasonally adjusted 5,83,000 annual rate compared to the prior month, after plunging 14.5% in January 2009. The Dow Jones Industrial Average rose 2.5%, its fifth gain in six sessions and its highest close since 19 February 2009.
Japanese stock index Nikkei endured gains for fourth consecutive day on broad based gain in the shares of financials, real estate, and energy issues after the central bank announced a move to boost lenders' capital.
The Japanese stock market opened higher and optimism that government stimulus measures and central bank policies would pump life into the world's second-largest economy spurred the sentiments further. The Nikkei 225 Stock Average index spurted 23.04 points, or 0.3%, to 7,972.17, while the broader Topix added 4.03 points, or 0.5%, to 765.
China's Shanghai Composite rose 0.2%, South Korea's Kospi added 0.5%, Taiwan's Taiex edged up 0.1% and Hong Kong's Hang Seng Index gained 1.9%, with the latter led again by a surge in market heavyweight HSBC Holdings
However, Aussie stocks slipped from a one-month high as traders booked profts in the mining and energy stocks. Australia's S&P/ASX 200 index defied the broad regional trend after hefty gains Tuesday, to finish down 0.2% at 3,446.30.
In other markets, Malaysia's main index rose 0.7% and Philippine shares gained 0.6%, while New Zealand's NZX-50 ended up 1.6%.
India's Sensex shed its initial gains and dipped below 9k mark in the closing hours. The BSE 30-share Sensex provisionally rose 113.92 points, or 1.29%, off close to 140 points from the day's high. The steep slide in the second half of the trade came after the market surged to its hit highest level in more than a month in afternoon trade.
Meanwhile, crude oil prices slipped ahead of the US weekly inventories data as traders booked profits after the recent surge. The light, sweet crude oil for April futures slipped 86 cents to 48.90 per barrel in the London trades.
Realty, metal shares lead 1.2% Sensex surge
Key benchmark indices came sharply off the day's high in late trade as IT and banking stocks pared gains amid caution ahead of the outcome of the two-day meeting of the US Federal Reserve. Index heavyweights Reliance Industries (RIL) and Larsen & Toubro came off the day's high even as realty stocks held firm. The barometer index BSE Sensex fell below the psychological 9,000 level. Fall in shares in London after weak economic data also triggered profit taking after a sharp surge in prices in the past few days.
The BSE 30-share Sensex was up 112.86 points, or 1.27% off close to 140 points from the day's high. The steep slide in the second half of the trade came after the market surged to its hit highest level in more than a month in afternoon trade.
The market extended gains during the course of the trading session after a firm opening triggered by data showing substantial buying by foreign funds on Tuesday and on overnight rally in US stocks. Share prices, however, witnessed intermittant decline as investors cashed on gains after a recent solid rally. The market came sharply off the higher level after 14:00 IST. Just before the sharp slide, the Sensex was hovering comfortably above the psychological 9,000 level.
Expectations of further cut in policy rates by the Reserve Bank of India remain with sharply falling headline inflation.
Trading in US index futures indicated the Dow could fall 36 points at the opening bell on Wednesday, 18 March 2009. The Federal Reserve will conclude its two-day meeting Wednesday amid signs the economy is still continuing to contract sharply. Over the past year, the Fed has slashed rates to zero and thrown $1 trillion at selected credit markets to try to break the economy's vicious downward cycle.
Foreign institutional investors (FIIs) bought shares worth a net Rs 415.12 crore on Tuesday, as per the provisional data released by the stock exchanges. The substantial buying follows easing of FII selling vigour in the past few days.
But the upside on the domestic bourses will be capped in the next two months due to political uncertainty ahead of parliamentary election to be held between mid-April 2009 to mid-May 2009.
Meanwhile, FIIs have responded enthusiastically to the government's decision to increase the cumulative investment limit in corporate debt from $ 6 billion to $ 15 billion. In an open bidding held at the National Stock Exchange (NSE) recently, a total of 24 bidders were allocated investments of Rs 29350 crore, the highest ever investment allocation by FIIs in India. In comparison, the net investment of FIIs in 2008 was only Rs 12069 crore. Since January 2009, FII's net investment in debt instrument has fallen by Rs 634 crore.
As per the Securities and Exchange Board of India (Sebi) data, $8 billion (Rs 41,000 crore) was available for allocation to FIIs and their sub-accounts in an open bidding platform.
Attractive interest rates have lured foreign funds to Indian debt market. For instance, corporate debt returns in the US are 1-1.5%, whereas in India, the rates are as high as 8-9%. Bonds floated by state-run firms fetch yields in the range of 9.30%, which are about 300 basis points higher than 10-year G-Sec yields. As per reports, FIIs are likely to invest in attractive PSU bonds floated by quasi-government entities like Power Finance Corporation and Rural Electrification Corporation.
Meanwhile, foreign direct investment (FDI) in India in January 2009 was up 55% at $2.73 billion from $1.76 billion for the same month in the preceding year. Up to September this fiscal year, the monthly inflows were in excess of $2 billion. However, the following three months witnessed a sharp dip in the overseas investment, due to the backdrop of the global financial crisis. The January figures bring a renewed hope that India is back on the radar of global investors.
A sharp fall in inflation in the past few months has provided room for the Reserve Bank of India (RBI) to cut policy rates. Japanese financial services firm Nomura expects a 100 basis points reduction in key short-term interest rates by RBI in April-June 2009 quarter.
While gains in the wholesale-price index (WPI) have slowed, other gauges of inflation that the central bank takes into account when deciding policy are at a decade high. The inflation rate as measured by consumer price index for industrial workers, which seeks to represent the impact of retail prices on the country's workforce, had risen to 10.45% in January 2009, compared to 9.7% in the previous month.
Similarly, consumer price index for urban non-manual employees suggests that the annual rate of inflation in 59 Indian cities had been 9.8% in December 2008, the latest month for which data is available.
London's FTSE 100 stock index turned lower as the latest data showed the tally of unemployed British workers rose to 2.03 million in the November-to-January period for an unemployment rate of 6.5% when measured by International Labor Organization standards. The FTSE was down 0.01% at 3,856.74. The number of unemployed rose by 1,65,000 from the previous three months and the unemployment rate jumped from 6%. The number of people claiming jobless benefits in February 2009 rose by a record 138,400 from January to 1.39 million. Economists had expected a rise in claimants of 87,500.
Key benchmark indices in France and Germany and UK pared gains and were up by between 0.38% to 0.68%.
Asian shares rose on Wednesday, 18 March 2009, following an upbeat session in the US overnight. Key benchmark indices in Hong Kong, China, Singapore, Japan, South Korea and Taiwan were up by between 0.12% to 1.86%.
At a policy meeting, the Bank of Japan today kept interest rates unchanged at 0.1% but said it would broaden its purchases of government bond to bolster liquidity and ensure market stability. The Bank of Japan also forecast that the economy would remain under stress in the new fiscal year and said that substantial liquidity is required to ensure stability in financial markets.
The Bank of Japan had announced late Tuesday that it would provide up to one trillion yen ($10.2 billion) in subordinated loans to financial institutions in an effort to bolster banks' capital ratios and ease strains in Japan's financial system.
US stocks surged on Tuesday, 17 March 2009, helped by news February 2009 housing starts increased 22.2% to a seasonally adjusted 5,83,000 annual rate compared to the prior month, after plunging 14.5% in January 2009. The Dow Jones Industrial Average rose 2.5%, its fifth gain in six sessions and its highest close since 19 February 2009.
The BSE 30-share Sensex was up 112.86 points, or 1.27%, to 8,976.68, its highest closing since 19 February 2009. At the day's high of 9,120.46, the Sensex gained 256.64 points in afternoon trade, its highest level since 17 February 2009. At the day's low of 8.951.32, the Sensex rose 87.50 points in late trade.
The S&P CNX Nifty was up 37.25 points or 1.35% to 2,792.90.
The Sensex is down 670.63 points or 6.95% in calendar 2009 from its close of 9,647.31 on 31 December 2008. The S&P CNX Nifty is down 166.25 points or 5.61% in calendar 2009 from its close of 2,959.15 on 31 December 2008.
The BSE clocked a turnover of Rs 4.134 crore, higher than Rs 3,974.95 crore on Tuesday, 17 March 2009.
Nifty March 2009 futures were at 2786.75, at a discount of 7.95 points as compared to the spot closing of 2794.70. Turnover in NSE's futures & options (F&O) segment increased to Rs 54,871.64 crore from Rs 53,883.76 crore on Tuesday, 17 March 2009.
The BSE Mid-Cap index was up 2.36% and BSE Small-Cap index rose 1.8%. Both the indices outperformed the Sensex.
The BSE Realty index (up 7.65%), the BSE Metal index (up 3.47%), the BSE Capital Goods index (up 3.18%), the BSE Bankex (up 2.63%), the BSE Consumer Durables index (up 1.73%), the BSE Oil & Gas index (up 1.64%), the BSE Power index (up 1.44%) outperformed the Sensex.
The BSE FMCG index (down 1.14%), the BSE TECk index (up 0.75%), the BSE PSU index (up 0.81%), the BSE Healthcare index (up 0.82%), the BSE IT index (up 1.09%), the BSE Auto index (up 1.25%) underperfomed the Sensex.
The market breadth, indicating the overall health of the market, was strong on BSE with 1,570 shares advancing as compared with 949 that declined. A total of 60 shares remained unchanged.
From the 30 share Sensex pack, 23 stocks rose while rest fell.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 2.38% to Rs 1,333.60 ahead of production of gas from KG basin, off the east coast, this month. But the stock came off the day's high of Rs 1,359.90. RIL's advance tax payment fell 16.47% to Rs 370 crore in Q4 March 2009 over Q4 March 2008.
Banking stocks pared gains on fears of rising defaults in a weakening economy. India's second largest private sector bank by operating income HDFC Bank rose 2.09% to Rs 842. 65, off the day's high of Rs 859.79 . Its ADR rose 2.1% on Tuesday. Its advance tax payment rose 10% to Rs 275 crore in Q4 March 2009 over Q4 March 2008.
India's largest bank in terms of assets and branch network State Bank of India gained 1.2% to Rs 960.95, off the day's high of Rs 975. Its advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.
India's largest private sector bank by net profit ICICI Bank rose 3.41% to Rs 335.20. Its American depository receipts (ADR) jumped 3.56% on Tuesday, 17 March 2009. ICICI Bank is reportedly considering spinning off its automated teller machines and point of sale terminals, which accept credit and debit card payments, and has sought bids from banking technology firms and private equity players. ICICI Bank's advance tax payment remained unchanged at Rs 250 crore in Q4 March 2009 when compared to Q4 March 2008.
Outsourcing focussed IT firms came off the day's high on fears a weak global economy would cut the amount firms spent on technology. India's largest software services exporter by sales TCS rose 1.85% to Rs 506.60 off the day's high of Rs 513.90. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008. The company during trading hours on Monday 16 March 2009 said its promoter Tata Sons has pledged more than 12.06 crore shares or 12.33% of the equity capital of the firm.
India's fifth largest IT major by sales HCL Technologies rose 1.29% to Rs 102.45 on securing a contract worth $350 million on Monday, 16 March 2009.
India's third largest software services exporter, Wipro rose 1.47% to Rs 230.65, off the day's high of Rs 237.85. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC). Its ADR rose 0.63% on Tuesday.
India's second largest software services exporter Infosys Technologies rose 0.94% to Rs 1,277.45, off the day's high of Rs 1,301.70. Its ADR rose 1.08% on Tuesday. Infosys chief and co-founder Mr S Gopalakrishnan said on Sunday, 15 March 2009, the Indian IT industry would tide over the current downturn and might surpass the US in terms of having the largest number of IT professionals in the world in the next three years.
The Indian rupee climbed on Wednesday, propelled by a rise in domestic stocks and the dollar's weakness against the euro. The partially convertible rupee was at 51.30 per dollar, above its previous close of 51.470/485. The rupee has declined sharply in the past few days. It hit a record low beyond 52 a dollar recently. 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 real estate shares rose on hopes lower rates will spur housing demand. DLF, Unitech and Indiabulls Real Estate rose by between 2.7% to 7.76%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 3.4% to Rs 638 as the company's advance tax payment rose 61.76% to Rs 275 crore in Q4 March 2009 over Q4 March 2008. But the stock came off the day's high of Rs 645.50. Bharat Heavy Electricals, Thermax, Praj Industries, ABB, rose by between 0.67% to 5.56%.
Auto shares rose on hopes lower interest rates and fall in fuel prices would spur demand for vehicles which is mainly driven by finance. Hero Honda Motors, and Maruti Suzuki India rose by between 1.17% to 2.38%. But India's largest tractor maker by sales Mahindra & Mahindra fell 4.09%.
India's largest commercial vehicle maker by sales Tata Motors rose 2.56% ahead of the launch of its Rs 1-lakh car Nano on 23 March 2009. Tata Motors paid no advance tax in Q4 March 2009 compared to Rs 75 crore in March 2008.
Some FMCG stocks rose on expectations of better Q4 March 2008 results following reports of higher advance tax payment by these firms. Ruchi Soya, Dabur India, Britannia Industries, ITC and United Spirits rose by between 0.75% to 4.5%. But India's largest FMCG firm by sales Hindustan Unilever fell 0.45% even as the company's advance tax payment rose 30% to Rs 130 crore in Q4 March 2009 over Q4 March 2008. India's largest cigarette maker by sales ITC fell 2.11%.
Some healthcare stocks, too, rose on expectations of better Q4 March 2008 results on reports of higher advance tax payment by these firms. Dr Reddy's Laboratories, Sun Pharmaceuticals Industries, Ranbaxy Laboratories, Biocon, Glenmark Pharmaceuticals, Lupin, Matrix Laboratories, rose by between 0.4% to 5.9%.
Metal stocks rose on rally in metal prices on London Metal Exchange. Tata Steel, Steel Authority of India, Hindustan Zinc, Sterlite Industries National Aluminum Company and Hindalco Industries rose by between 1.04% to 5.68%.
India's largest iron ore exporter Sesa Goa rose 1.99% on reports India's iron ore exports jumped 21.53% to 13.9 million tonnes in January 2009 against 11.5 million tonnes in January 2008 led by rising demand from China.
Shanghai copper crept up on Wednesday, after earlier touching a four-month high, buoyed by strong spot prices. The most-active Shanghai June copper contract rose 0.4% to 30,570 yuan ($4,472) a tonne by the midday break, after hitting a peak of 30,880 yuan, the best level since 11 November 2008. Three-month London Metal Exchange copper rose $10 to $3,810 a tonne, having struck a more than four-month high of $3,862 the previous day.
LME copper prices have rallied 25% this year having plummeted 60% from record highs last July, while Shanghai copper has rallied 28% since the end of December 2008. Copper prices have been supported in recent weeks by the purchase of 3,00,000 tonnes of metal by China's State Reserves Bureau (SRB) to boost the country's strategic stockpiles.
Vijaya Bank clocked the highest volume of 2.68 crore shares on BSE. Cals Refineries (2.01crore shares), Suzlon Energy (1.57 crore shares), Satyam Computer Services (1.39 crore shares) and Reliance Natural Resources (1 crore shares) were the other volume toppers in that order.
Akruti City clocked the highest turnover of Rs 786.55 crore on BSE. Reliance Industries (Rs 217.06 crore), ICICI Bank (Rs 146.17 crore), Educomp Solutions (Rs 143.71 crore) and Everonn Systems (Rs 135.97 crore) were the other turnover toppers in that order.
US stocks register good gains in the final hour
All ten sectors end in the green led by the financial sector
After starting the day on a relatively shaky note, US stocks picked up momentum within a couple of hours on Tuesday, 17 March, 2009. The financial sector dropped substantially as soon as trading
kicked off today leading indices in the red region during the opening bell. But the same sector rebounded and coupled with support from a few large technology companies, US stocks managed a good rally at the end of the day. An unexpected good housing report also gave investors
some reason to cheer.
The Dow Jones Industrial Average ended higher by 178 points at 7,395, the Nasdaq closed higher by 58 points at 1,462 and the S&P 500 closed higher by 24 points at 778. Dow had started the day 23 points lower earlier during the day.
All the ten sectors ended in the green today led by financials and consumer discretionary sectors. Materials could not lend much support as aluminium giant Alcoa warned of a first quarter loss. Higher oil prices supported the energy sector.
Stocks stalled today in the first few minutes of trading due to the lack of direction and profit taking in the prior session. But despite a choppy start, stocks put together some solid gains as financial stocks rebounded to lift the broader market to fresh session highs.
Among major economic news at Wall Street today, the Commerce Department reported that February housing starts hit an annualized rate of 583,000, up from record lows and above the rate of 450,000 starts that was expected. Meanwhile, February building permits hit an annualized rate of 547,000, which is above the 500,000 that was expected. The prior reading showed 531,000 permits.
In a separate report, the Producer Price Index (PPI) for February increased 0.1% after a 0.8% increase the month before. The PPI was expected to increase 0.4% in February. Core PPI increased 0.2% after a 0.4% increase in the prior reading. The consensus called for a 0.1% increase in February.
Volatile crude shot up substantially today to highest level in three months on Tuesday, 17 March, 2009. Prices fell earlier today as traders digested the news that OPEC's meeting at Vienna this weekend was inconclusive regarding any further production cut. But then, the stronger than expected housing report from the Commerce Department helped boost prices.
On Tuesday, crude-oil futures for light sweet crude for April delivery closed at $49.16/barrel (higher by $1.81 or 3.8%) on the New York Mercantile Exchange. It rose to a high of $49.82 during intra day trading. Earlier during the day, prices dropped as much as 2%.
Tomorrow, among economic reports, February CPI and the fourth quarter account balance are due before the opening bell. In addition, the weekly crude inventory data is due at 10:30ET. The FOMC will make its policy announcement tomorrow at 14:15ET. The fed funds target rate is expected to remain unchanged at 0.00-0.25%.
Firm global stocks, FII buying to boost bourses
An overnight rally in US stocks, higher Asian markets and buying by foreign funds would lift Indian equities today, 18 March 2009. Expectations of further cut in policy rates by the central bank remain with sharply falling headline inflation.
Asian shares were moderately higher Wednesday, 18 March 2009, after an upbeat session in the US, with building stocks helped by surprisingly strong US housing data. Key benchmark indices in Hong Kong, Japan, China, South Korea, Singapore and Taiwan were up by between 0.02% to 1.8%. Bank of Japan at its policy meeting kept the key interest rate unchanged at 0.1%.
US stocks surged on Tuesday, 17 March 2009, helped by news February 2009 housing starts increased 22.2% to a seasonally adjusted 5,83,000 annual rate compared to the prior month, after plunging 14.5% in January 2009. The Dow Jones Industrial Average rose 2.5%, its fifth gain in six sessions and its highest close since 19 February 2009.
As per provisional data released by the stock exchanges, foreign institutional investors (FIIs) funds bought shares worth a net Rs 415.12 crore on Tuesday. The substantial buying follows easing of FII selling vigour in the past few days.
Meanwhile, FIIs have responded enthusiastically to the government's decision to increase the cumulative investment limit in corporate debt from $ 6 billion to $ 15 billion. In an open bidding held at the National Stock Exchange (NSE) recently, a total of 24 bidders were allocated investments of Rs 29350 crore, the highest ever investment allocation by FIIs in India. In comparison, the net investment of FIIs in 2008 was only Rs 12069 crore. Since January 2009, FII's net investment in debt instrument has fallen by Rs 634 crore.
As per the Securities and Exchange Board of India (Sebi) data, $8 billion (Rs 41,000 crore) was available for allocation to FIIs and their sub-accounts in an open bidding platform.
Attractive interest rates have lured foreign funds to Indian debt market. For instance, corporate debt returns in the US are 1-1.5%, whereas in India, the rates are as high as 8-9%. Bonds floated by state-run firms fetch yields in the range of 9.30%, which are about 300 basis points higher than 10-year G-Sec yields. As per reports, FIIs are likely to invest in attractive PSU bonds floated by quasi-government entities like Power Finance Corporation and Rural Electrification Corporation.
Meanwhile, foreign direct investment (FDI) in India in January 2009 was up 55% at $2.73 billion from $1.76 billion for the same month in the preceding year. Up to September this fiscal year, the monthly inflows were in excess of $2 billion. However, the following three months witnessed a sharp dip in the overseas investment, due to the backdrop of the global financial crisis. The January figures bring a renewed hope that India is back on the radar of global investors.
A sharp fall in inflation in the past few months has provided room for the Reserve Bank of India (RBI) to cut policy rates. Japanese financial services firm Nomura expects a 100 basis points reduction in key short-term interest rates by RBI in April-June 2009 quarter.
However, the upside on the domestic bourses will be capped in the next two months due to political uncertainty ahead of parliamentary election to be held between mid-April 2009 to mid-May 2009.
Bullion metals drop again
Prices drop for the second straight day
Bullion metals dropped for the second consecutive day on Tuesday, 17 March, 2009 as stocks rallied in US once again decreasing the appeal of the precious metals. Stocks at Wall Street rallied today buoyed by the financial sector.
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 Tuesday, Comex Gold for April delivery fell $5.2 (0.6%) to close at $916.8 an ounce on the New York Mercantile Exchange. Yesterday also, gold had slipped by 0.8%. Last Tuesday, gold had dropped below $900 for first time in two months. Before yesterday, gold had climbed by almost 4% in the past three sessions. Last week, the yellow metal ended lower by 1.5%. 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 3.9%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (8.9%) since then.
On Tuesday, Comex silver futures for May delivery fell 22 cents (1.7%) to end at $12.67 an ounce. Last week, silver fell 0.8% In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 10.3% this year. For 2008, silver had lost 24%.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.
Prior to 2008, gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for April delivery closed lower by Rs 46 (0.3%) at Rs 15,145 per 10 grams. Prices rose to a high of Rs 15,260 per 10 grams and fell to a low of Rs 15,109 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 233 (1.1%) lower at Rs 21,646/Kg. Prices opened at Rs 21,853/kg and fell to a low of Rs 21,590/Kg during the day's trading.
Pre Session Commentary - March 18 2009
Today domestic markets are likely to open positive as US markets closed with phenomenal gains on the back of positive cues of the housing sector. There are also expectations about further back up from the government to take the mortgage assets of the banks to revive the housing demand and lending. The other Asian markets have also opened positive and therefore one could witness some trend in the domestic arena as well. Amidst lack of news, domestic markets are likely to track the movements of global markets.
On Tuesday, the domestic markets closed in red after a volatile session. There was not much enthusiasm amongst the investors due to lack of news. The sentiments from the other Asian markets were also subdued. There was some Profit booking pressures across frontline stocks and no fresh buying was built. This dull movement was inevitable due to the fact that domestic markets had gained enough in the previous trading sessions. A lot of cautiousness prevailed in the buying interest. Bottom line stocks however managed to close flat. Sectors like Bankex, IT, Oil & Gas, Teck and CD were shattered as they fell by 2%, 1.72%, 1.46%, 1.05% and 0.94% respectively. During the session we expect the markets to be trading positive with mild volatility.
The BSE Sensex closed lower by 79.72 points at 8,863.62 and NSE Nifty ended down by 19.8 points at 2,757.45. BSE Mid Caps ended with losses of 4.21 points at 2,696.35 and BSE Small Caps ended with gains of 11.82 points 3,010.31. The BSE Sensex touched intraday high of 9,024.12 and intraday low of 8,801.79.
On Tuesday, the US stock markets ended with phenomenal gains. The February housing starts recorded an annualized rate of 583,000, up from record lows and above the rate of 450,000 starts that was expected. Further the February building permits hit an annualized rate of 547,000, which is above the 500,000 that was expected. The prior reading showed 531,000 permits. On the other hand, the Producer Price Index (PPI) for February increased 0.1% after a 0.8% increase the month before. The PPI was expected to increase 0.4% in February. Core PPI increased 0.2% after a 0.4% increase in the prior reading. US light crude oil for April delivery inclined by $1.81 to settle at $49.16 a barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed up by 178.73 points at 7,395.70, the NASDAQ Composite (RIXF) index gained 58.09 points to close at 1,462.11 and the S&P 500 (SPX) inclined by 24.23 points to close at 778.12.
Today major stock markets in Asia are trading positive. Shanghai composite is up by 9.70 points at 2,228.03 followed by Hang Seng that is also up by 185.82 points at 13,063.91. Further, South Korea''s Seoul Composite is flat at 1,162.50 and Japan''s Nikkei is also flat at 7,950.54. However, Singapore''s Strait Times is up by 18.23 points at 1,577.26.
Indian ADRs ended mostly up. In technology sector, Patni Computers ended higher by 6.37% along with Infosys by 1.08%. Further, Wipro gained 0.63 while Satyam closed down by 7.06%. In banking sector ICICI Bank and HDFC Bank gained 3.56% and 2.10 respectively. In telecommunication sector, Tata Communication dropped by 1.12% while MTNL advanced by 5.37%. Further, Sterlite Industries increased by 0.72%.
The FIIs on Tuesday stood as net sellers in equity and net buyer in debt. Gross equity purchased stood at Rs 1,369.90 Crore and gross debt purchased stood at Rs 454.90 Crore, while the gross equity sold stood at Rs 1,384.20 Crore and gross debt sold stood at Rs. 113.70 Crore. Therefore, the net investment of equity and debt reported were Rs (14.30) Crore and Rs 341.20 Crore respectively.
On Tuesday, the Indian rupee closed at 51.47/48, weaker than its previous close. Indian rupee ended weaker on stock market losses along with worries over capital inflows.
On BSE, total number of shares traded were 34.02 Crore and total turnover stood at Rs 3,974.95 Crore. On NSE, total number of shares traded were 72.47 Crore and total turnover was Rs 10,376.64 Crore.
Top traded volumes on NSE Nifty – Unitech with 62488644, ICICI Bank with 31841759 shares, Suzlon with 30310171 shares, SAIL with 13468930 shares followed by DLF with 12572638 shares.
On NSE Future and Options, total number of contracts traded in index futures was 1032078 with a total turnover of Rs 13,685.4 Crore. Along with this total number of contracts traded in stock futures were 515537 with a total turnover of Rs 13,866.49 Crore. Total numbers of contracts for index options were 1794207 with a total turnover of Rs 24,919.22 Crore and total numbers of contracts for stock options were 47685 and notional turnover was Rs 1,412.65 Crore.
Today, Nifty would have a support at 2,738 and resistance at 2,809 and BSE Sensex has support at 8,812 and resistance at 8,976.
Market may stage a comeback
The modest rally in the US markets and a rise in several Asian indices in the ongoing trading session may help the domestic indices pull-back from lower levels. However, lack of clarity in the market and volatility may drag down the market. Among the indices, the Nifty could face a resistance at 2800-2850 levels and has a likely supports at 2700-2650 levels. The Sensex has a likely support at 8700 and may test higher levels of 9000.
US indices surged on Tuesday, with the major stock gauges ending higher for the fifth out of six sessions, as investors continued to dig out from 12-year lows. While the Dow Jones moved up by 179 points at 7,396, the Nasdaq managed to add 58 points at 1,462.
Barring few, most of the Indian floats had a field day on the US bourses. Tata Motors flared up by 12.86% and Patni Computers jumped 6.37% , while MTNL, ICICI Bank, Dr Reddy's, HDFC Bank, Infosys and Wipro gained around 1% each. Among the laggards Satyam slipped 7.06% and VSNL fell 1.12%.
Crude oil prices gained a little, with the Nymex light crude oil for April delivery raising by $1.81 to close at $49.16 a barrel. In the commodity space, the Comex gold for April delivery slipped by $5.20 to settle at $916.80 an ounce.
Daily News Roundup - March 18 2009
ICICI Bank is looking at setting up a new entity to house its ATM and point of sale terminals, and has sought bids from banking technology companies and PE players. (ET)
Government proposes to redistribute over 17,600 petrol pumps of IOC to BPCL and HPCL. (ET)
Infosys BPO, BPO arm of Infosys, has taken steps to reduce variable costs and accelerate staff redeployment by terminating services of over 600 contract workers in February. (BS)
NTPC has given technical approval for the establishment of coal-based thermal power plant at Kudagi in Bijapur district. (BS)
IOC plans to spend Rs15bn on additional pipelines, boosting its annual capacity to 10mn tons. (Mint)
Tata Sons pledged an additional 12.33% stake in TCS. (BL)
Reliance Industries and Essar Oil are keen on buying crude from Cairn India’s Rajasthan field. (ET)
JSW Steel plans to set up 600 outlets to supply steel in rural areas. (BS)
Differences have emerged between Tata Motors and Ashok Leyland, over a joint venture involving construction equipment and tractor manufacturer John Deere. (BS)
M&M unveils its defence auto facility in Faridabad and plans to enter into manufacturing of small aircrafts. (Mint)
Mahindra Defence Systems has called off talks with Italian aerospace and defence major. (BL)
M&M plans to confine Xylo exports primarily to South Africa for the next six months. (BL)
BPCL sells Rs950mn worth oil bonds under RBI’s special market operations. (ET)
Crisil has further downgraded Suzlon as it has concerns over its equity infusion and expanding working capital. (FE)
ICRA suspended its rating on Ansal Properties and Infrastructure Ltd after the real estate major failed to provide sufficient information to assess appropriate rating. (BS)
Mozambique government has allowed Coal India to begin exploring two carbon bed blocks that were awarded to it last year. (Mint)
GMR Infrastructure plans to spend Rs70bn during FY10. (Mint)
Maytas Infrastructure’s Rs121bn Hyderabad Metro Rail Project may go off track. (ET)
Dishman Pharmaceuticals announced 13% salary cut and reduced working days. (ET)
Telenor to acquire an additional 7% in Unitech arm at no extra cost. (ET)
Harrisons Malayalam plans to invest Rs900mn to vitalize its ageing rubber and tea plantations. (ET)
Essar Telecom Infrastructure is in talks with Tata-Quippo for a possible merger. (ET)
Multiplexes refused to share 50% revenues with the distributors. (ET)
Panacea Biotech has been asked by the Indian drug regulator to stop sale of its oral polio vaccine. (Mint)
Parle Agro, the Rs9.5bn FMCG company, raised prices of Frooti and Appy Classic drinks after a decade. (BS)
Commerce department proposes that companies in SEZ’s should be exempted from paying tax on the services they consume instead of seeking refunds. (ET)
Import of about 350 sensitive items went up by 33% during April-December period. (ET)
RBI has allowed Indian companies to hedge carbon credits and freight contracts on overseas exchanges to help them cope with high volatility. (ET)
CERC will take up the issue of inter-state electricity transmission with its stakeholders in a meeting today. (ET)
India’s oil imports dip by 7% in January. (FE)
Import duty sop on Naphtha sought. (FE)
Maharashtra has a revenue deficit of Rs84bn. (FE)
At least 70% of the 190 infrastructure projects are stalled due to land acquisition problems. (Mint)
Petroleum and Natural Gas regulator plans to complete the bidding process for piped gas distribution projects in six cities by March end. (Mint)
TRAI has made it mandatory for all broadcasters to have Reference Interconnect Offers (RIOs) for their addressable systems like DTH, IPTV and CAS. (BS)
Government extended the ban on export of edible oil by one year, up to March 16, 2010. (BS)
Holding the house!
One small cat changes coming home to an empty house to coming home.
Bulls may feel at home even as the debate is on whether the recent strength is merely a dead cat bounce. We had mentioned on Tuesday that the market could rebound after a breather if global markets hold firm. Rightly enough US stocks shot up overnight on the back of some encouraging news on housing starts. Asian indices too are mostly up though European shares closed marginally in the red.
In part, the current rebound in global equities is due to technical factors. Stock benchmarks had been under pressure since the start of the year. In the US, the Dow and the S&P hit 12-and-a-half-year lows early last week. However, since then they have recovered smartly and so have other markets.
Thankfully, there has not been too many bad news during this period. On the contrary, there have been a few bright spots like positive comments from top global banks. However, there are genuine fears that stocks could re-test lows hit in Oct ’08.
The Indian market should open strong today and remain so for most part of the day unless fresh bad news hits us.
FIIs were net buyers in the cash segment on Tuesday at Rs4.15bn while the local institutions pulled out Rs1.53bn. In the F&O segment, the foreign funds were net buyers at Rs9.51bn. On Monday, FIIs were net sellers of Rs143mn. Mutual Funds were net buyers of Rs2.26bn on the same day.
US stocks resumed their ascent on Tuesday after a day's breather, as a surprising rebound in housing starts coupled with an encouraging report on producer prices eased worries about deflationary conditions.
The sentiment also improved on hope that the Federal Reserve will outline new measures to revive the world's largest economy when it announces the outcome of its two-day meeting on Wednesday.
The S&P 500 index added 24 points, or 3.2% to 778.12, led by a 6.6% gain in financial companies. The Dow Jones Industrial Average advanced 178.73 points, or 2.5%, to 7,395.7. The Nasdaq Composite Index surged 24 points, or 4.1%, to 1,462.11.
About eight stocks rose for each that fell on the New York Stock Exchange.
The rally in global equities over the past week has been largely a rebound after all the sell-off suffered in the first two months. Between Jan. 6 and March 9, the S&P 500 slumped nearly 28%, ending at a 12-1/2 year low. Since March 9, stocks have gained in five of six sessions, with the S&P 500 rising 15% as of Tuesday's close.
The rally has also been powered by some good news. Citigroup and other top global banks said last week they were profitable in the first two months of the year, helping the financial sector. Banks also got a boost from talk about reinstating the "uptick rule" that limits short selling and changing mark-to-market accounting.
New legislation was introduced on Monday to reinstate the "uptick rule," adding to pressure on the Securities and Exchange Commission (SEC), which meets on April 8 to discuss restoring the rule. Critics have claimed that the rule's absence has exacerbated stock selling in the financial sector.
In the day's big economic news, new construction of US homes jumped in February, surprising economists who were expecting a decline. Housing starts rose to a seasonally adjusted annual rate of 583,000 in the month, up 22% from a revised 477,000 in January. Housing starts haven't risen month-over-month since last June. Economists expected starts to have fallen to a 453,000 annual unit rate.
Building permits, a measure of builder confidence, rose 3% to a seasonally adjusted rate of 547,000 versus forecasts for a drop to 500,000.
Another government report, the Producer Price Index (PPI), showed a smaller-than-expected rise. PPI, a measure of wholesale inflation, rose 0.1% in February after rising 0.8% in January. Economists had forecast a rise of 0.4%. The so-called core PPI, which excludes volatile food and energy prices, rose 0.2% after climbing 0.4% in the previous month. Economists had predicted a gain of 0.1%.
FOMC, the Fed's policy setting body kicked off its two-day meeting. The central bank is expected to hold the fed funds rate, its key short-term interest rate, close to zero. But it could say that it will start buying long-term US Treasurys after saying it was prepared to do so at its last few meetings.
Financial stocks gained, including Citi, JPMorgan Chase, Goldman Sachs and Wells Fargo. The KBW Bank sector index added 6%.
Technology shares too rose, lifting the Nasdaq. Cisco Systems' shares rose on an upbeat Goldman Sachs note with the brokerage adding it to its Conviction Buy list. Dell announced a new line of laptops and Apple introduced a new version of software for iPhone. Intel, Microsoft, Google and Yahoo! were among the other big tech gainers.
Alcoa shares slumped 8.7% after the aluminium major announced late on Monday that it will cut its dividend, issue stock and convertible notes worth about $1.1 billion and cut its spending in 2010.
Caterpillar said it is laying off over 2,400 more employees at five plants in Illinois, Indiana and Georgia so as to save costs amid the economic slowdown. Shares of the Dow component ended 1.5% higher.
AIG remained in focus amid growing fury that the company paid millions in bonuses to executives, even as the company received $170 billion in federal bailout money. President Obama has said he will try to block the bonuses. AIG's CEO Edward Liddy will go before a House panel on Wednesday that is probing the government's involvement in the troubled insurer.
Despite the recent bounce in global equities, most market analysts believe that investors need to be cautious, as a few better-than-expected economic reports does not change the overall picture on the global economy and the mess in the financial sector.
This is very much a bear market rally and at some point stocks will retest the lows hit in October-November period. One also needs to start having a look at the corporate earnings which could well be the next turning point.
Quarterly earnings reports - which will start trickling out next month - are expected to be weak across the board. The earnings will probably cause the markets to retest recent lows.
Treasury prices tumbled, raising the yield on the benchmark 10-year note to 3.01% from 2.95% on Monday.
Lending rates were improved. The 3-month Libor rate fell to 1.3% from 1.31% on Monday, while the overnight Libor rate dipped to 0.31% from 0.33%. Libor is a bank-to-bank lending rate.
In currency trading, the dollar fell versus the euro and gained against the yen.
US light crude oil for April delivery rose $1.81 to settle at $49.16 a barrel on Monday.
COMEX gold for April delivery fell $5.20 to settle at $916.80 an ounce.
Europe stocks ended lower on Tuesday, bringing a winning streak that has stretched to five sessions to a halt, led by weakness in the metals space. The pan-European Dow Jones Stoxx 600 fell 0.7% to 172.05, in a session where losses had stretched to as much as 2%.
The UK's FTSE 100 index was down 0.2% to 3,857.10, while Germany's DAX 30 index fell 1.4% to 3,987.77 and the French CAC 40 index shed 0.9% to 2,767.28.
ndian market ended with losses snapping three day winning streak on the back of weak cues from the US and Asian Markets. The banking stocks which had a significant rally in previous couple of trading sessions led the slide, followed by the auto and the oil & gas stocks. However, the FMCG, auto and power stocks provided some support bucking the negative trend.
The BSE Sensex and the NSE Nifty breached past the 9,000 and the 2,800 levels respectively in the early afternoon trades. However, the advance lost steam as traders and investors preferred to book profits at higher levels. The BSE Sensex fell 80 points to close at 8,863 and the NSE Nifty was down 20 at 2,757.
Among the 30-components of Sensex, 20 stocks ended in negative terrain and only 10 stocks ended in the green. TCS, JP Associates, SBI, Ranbaxy, Reliance Industries, Infosys and ACC were among the major losers. Tata Motors, Hindalco, Maruti, ITC and NTPC were among the major gainers.
Shares of Ingersoll-Rand surged by over 10% to Rs272 after the company announced that board of directors would meet on March 24, 2009 to consider buyback back of equity shares. The scrip touched an intra-day high of Rs294 and a low of Rs257 and recorded volumes of over 98,000 shares on NSE.
Shares of Mercator Lines rallied after the company announced that it took the delivery of its new build Jack Up Rig at a cost of approx Rs10bn from Keppels FELS, Singapore.
The rig was delivered on March 11, 2009 about three weeks before schedule and has been immediately deployed under a firm bare boat contract for a period of three years. The stock was up by over 10% to Rs25 after hitting an intra-day high of Rs27.35 and a low of Rs24 and recorded volumes of over 4.1mn shares on BSE.
Jagatjit Industries was in high spirits after the long rivalry between two brothers is nearing closing stages.
CLB chairman S Balasubramanian, in an order dated March 12 took the view that there was no merit in challenging the allotment of shares with differential voting rights (DVRs), as it is legally permissible. It dismissed the petitions filed by the two estranged brothers — Anand Jaiswal and Jagatjit Jaiswal.
Besides settling the family dispute the order is also significant as it may offer clarity on minority promoters using DVRs to fend off hostile takeover threats.
The stock was frozen at 20% upper circuit to Rs55.20 recording volumes of over 5,000 shares on the BSE.
Fed policymakers are holding a two-day meeting. With interest rates already low, investors are expecting Fed officials to shed light on the potential for quantitative easing. The next big event will be the quarterly earnings. It will throw up both positive as well as negative surprises. Till then investors may remain cautious
India Votes 2009 Verdict - BJP wins, Congress close second
The DP Poll Results are OUT! It was a see-saw battle all the way
The Congress/UPA had wrested the lead for a brief while before BJP/NDA made a comeback and snatched victory!
The Khichidi parties managed 7% of the votes.
BJP/NDA 424 (46.x%)
Congress/UPA 417 (45.x%)
Third Front/Khichidi 70 (7.x%)
Over 900 votes in all - AWESOME PARTICIPATION ! Thanks to all of you who VOTED!
PLEASE GO AND VOTE in the REAL THING as well!
Crude shoots up
Prices rise as housing data improves overall sentiment
Volatile crude shot up substantially today to highest level in three months on Tuesday, 17 March, 2009. Prices fell earlier today as traders digested the news that OPEC's meeting at Vienna this weekend was inconclusive regarding any further production cut. But then, the stronger than expected housing report from the Commerce Department helped boost prices.
On Tuesday, crude-oil futures for light sweet crude for April delivery closed at $49.16/barrel (higher by $1.81 or 3.8%) on the New York Mercantile Exchange. It rose to a high of $49.82 during intra day trading. Earlier during the day, prices dropped as much as 2%. Last week, crude ended higher by 1.6%. For the month of February, crude prices had ended higher by 1.5%.
Prices had remained extremely volatile last week also. Prices reached a high of $147 on 11 July, 2008 but have dropped almost 65% since then. Year to date, in 2009, crude prices are higher by 14.5%. On a yearly basis, crude prices are lower by 55%.
Stocks at US rallied today on reports that February housing starts hit an annualized rate of 583,000, up from record lows and above the rate of 450,000 starts that was expected. Meanwhile, February building permits hit an annualized rate of 547,000, which is above the 500,000 that was expected. The prior reading showed 531,000 permits.
Last Friday, the IEA said in the monthly report that global oil supply in February is estimated at 83.9 million barrels a day, down 1 million barrels from a month ago and 3.4 million barrels from a year ago. The agency also lowered its forecast for this year's global oil demand to 84.4 million barrels a day, 1.5%, or 1.2 million barrels, lower than a year ago.
Also at the Nymex on Monday, April reformulated gasoline futures rose 4.1% to $1.4238 a gallon and April heating oil gained 4.5% to $1.2675 a gallon.
Natural gas for April delivery fell 0.9% to $3.814 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for March delivery closed at Rs 2,568/barrel, higher by Rs 115 (4.7%) against previous day's close. Natural gas for February delivery closed at Rs 197/mmbtu, lower by Rs 1.4/mmbtu (0.7%).
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