Candidates with Criminal Records
Wednesday, March 25, 2009
BSE Bulk Deals to Watch - March 25 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
25/3/2009 530499 A K CAPITAL FIRSTRAND IRELAND PLC S 45600 141.01
25/3/2009 526955 ABL BIOTECHN MAVERICK INVESTMENT SOLUTION PVT LTD S 49776 11.45
25/3/2009 520077 AMTEK AUTO L OLYMPIA BUILDERS PVT LTD B 1899000 70.00
25/3/2009 520077 AMTEK AUTO L HDFC MUTUAL FUND S 1800000 70.00
25/3/2009 530355 ASIAN OILFIE OASIS TRADE CAPFIN P LTD B 325000 30.69
25/3/2009 532995 AVON CORP PANKAJ PRATAPSINH SARAIYA B 97000 5.19
25/3/2009 531682 CAT TECHNOL NEWGEN INTERNATIONAL PVT LTD S 400424 3.05
25/3/2009 523736 DHUNSE TEA I KASHIPUR HOLDINGS LTD B 325000 66.00
25/3/2009 523736 DHUNSE TEA I GREENPLY LEASING AND FINANCE LTD B 212980 66.00
25/3/2009 523736 DHUNSE TEA I MAYFAIR INDIA LTD S 515300 66.00
25/3/2009 532958 ETC NETWORK MUKUL AGRAWAL B 50000 60.50
25/3/2009 530317 GODAVAR DRUG SUSHMA KAKANI B 70000 3.80
25/3/2009 530317 GODAVAR DRUG KAMALA JAJU B 65000 3.80
25/3/2009 530317 GODAVAR DRUG GAUTAMCHAND JAIN S 135000 3.80
25/3/2009 505750 JOSTS ENG CO MAHESH PARSAD B 5000 124.86
25/3/2009 505750 JOSTS ENG CO MAHESH PARSAD S 5000 118.10
25/3/2009 532967 KIRI DYES PRAGYA MERCANTILE PVT LTD B 150000 100.00
25/3/2009 505283 KIRLOSAR PN BETTER VALUE HOLDING PVT LTD B 209962 167.00
25/3/2009 505283 KIRLOSAR PN KIRLOSKAR INTEGRATED TECHNOLOGIES LIMITED S 209962 167.00
25/3/2009 511728 KZLEASING KARAN MAHESHKUMAR HADVANI B 61971 74.54
25/3/2009 511728 KZLEASING YOGESH GIRDHARLAL PANDYA S 40000 74.65
25/3/2009 511728 KZLEASING AMI STOCK SHARE BROKERS PLTD S 33000 74.70
25/3/2009 530543 MARG LTD FRONTPOINT ASIA PACIFIC FUND L.P B 1278696 38.21
25/3/2009 530543 MARG LTD FRONTPOINT FINANCIAL SERVICES FUND L.P S 155000 39.75
25/3/2009 530543 MARG LTD MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S.V. S 1123696 38.00
25/3/2009 511688 MATHEW EASOW MATHEW EASOW FISCAL SERVICES LIMITED B 20898 5.69
25/3/2009 513131 METALMAN IND ISHA INVESTMENT B 60000 6.12
25/3/2009 531611 PRRANET INDU CHANDRAKANT BHOGILAL SHAH S 715939 2.87
25/3/2009 513558 REAL STRIP L NILAMBEN M RATHOD B 50000 26.05
25/3/2009 513558 REAL STRIP L NILAMBEN M RATHOD S 50000 29.00
25/3/2009 526407 RIT PRO IND AMULYA LEASING AND FINANCE LTD B 600000 17.30
25/3/2009 526407 RIT PRO IND CONSOLIDATED SECURITIES LTD S 600000 17.30
25/3/2009 531898 SANGUINE MD ANKURANILAGRAWAL B 160000 2.86
25/3/2009 531898 SANGUINE MD SUNIL RAMESHBHAI RUPANI B 116000 2.86
25/3/2009 531898 SANGUINE MD BHROSEMAND COMMODITIES PVT. LTD. S 160000 2.86
25/3/2009 505729 SINGER INDI DILIPKUMAR ARORA HUF S 15000 39.41
25/3/2009 512413 SPECTACLE SANJEEV JAI AEREN S 355155 46.90
25/3/2009 512048 SPLASH MEDIA NITIN T KATWA B 7389 90.10
25/3/2009 512048 SPLASH MEDIA KATWA KANCHANMALA T B 15000 90.10
25/3/2009 512048 SPLASH MEDIA MARIGOLD INVESTTRADE PRIVATE LIMITED S 20000 92.00
25/3/2009 512048 SPLASH MEDIA CHIRAG SHAH S 12000 90.10
25/3/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD B 99417 22.03
25/3/2009 526133 SUPERTEX IND PUSHPABEN MUKTILAL SHAH B 50000 19.50
25/3/2009 526133 SUPERTEX IND SHAH EKTA RIPPLE B 52500 22.36
25/3/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 107453 21.03
25/3/2009 526133 SUPERTEX IND PUSHPABEN MUKTILAL SHAH S 50000 22.33
25/3/2009 511503 SYNERG LOGIN PIYUSH D MEHTA HUF B 61000 3.75
25/3/2009 531874 VENUS VENT CHANDRA SHEKHAR SUNIL BHATT B 37060 27.33
25/3/2009 531874 VENUS VENT CHANDRA SHEKHAR SUNIL BHATT S 43136 27.85
25/3/2009 531668 VISION CORPO BALLY MERCHANDISE LTD. B 925000 5.69
25/3/2009 531668 VISION CORPO RUPA V SHAH S 925000 5.69
25/3/2009 531249 WELL PACK PA GANDHI MANISHA NAVNEETLAL B 22613 131.29
25/3/2009 531249 WELL PACK PA KAMLESH NAHAR B 39000 132.00
25/3/2009 531249 WELL PACK PA TUSHAR RAMESHBHAI PATEL B 29500 131.15
25/3/2009 531249 WELL PACK PA MADHU CHOWDHARY S 40000 132.00
25/3/2009 531249 WELL PACK PA VISHESH SHAHRA S 25000 131.90
NSE Bulk Deal Watch - March 25 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
25-MAR-2009,ACE,Action Construction Equip,INDUSINO INTERNATIONAL,BUY,2039167,12.00,-
25-MAR-2009,ALPSINDUS,Alps Industries Ltd.,INTELL INVOFIN INDIA PVT LTD,BUY,1,6.50,-
25-MAR-2009,AMTEKAUTO,AmtekAuto-Roll Sett,JPM COPTHAL INV AC COPTHALL MAURITIUS INV LTD,BUY,5397441,70.00,-
25-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,147190,2017.84,-
25-MAR-2009,GMRINDS,GMR Industries Limited,PRIME INDIA INVESTMENT FUND LTD,BUY,150000,85.95,-
25-MAR-2009,HBLPOWER,HBL Power Systems Limited,BLACKSTONE ASIA ADVISORS LLC. DEUTSCHE BANK,BUY,77600,103.00,-
25-MAR-2009,IOLN,IOL Netcom Limited,SAJEEVE KOPPARA THOMAS,BUY,176000,39.96,-
25-MAR-2009,JUBILANT,Jubilant Organsosys Limit,JUBLIANT EMPLOYEESWELFARETRUST,BUY,1048000,90.00,-
25-MAR-2009,KIRIDYES,Kiri Dyes and Chemicals L,PRAGYA MERCANTILE PVT LTD,BUY,150000,100.00,-
25-MAR-2009,KIRIDYES,Kiri Dyes and Chemicals L,SHRIMAL ANIL,BUY,25747,116.03,-
25-MAR-2009,LUMAXIND,Lumax Industries Ltd,CHAINANI SANJIV KANWAL,BUY,96942,63.50,-
25-MAR-2009,PRAKASH,Prakash Industries Ltd.,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,1272042,42.75,-
25-MAR-2009,UNITECH,Unitech Ltd,AMBIT SECURITIES BROKING PVT. LTD.,BUY,10906283,31.36,-
25-MAR-2009,UNITECH,Unitech Ltd,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,9600000,30.67,-
25-MAR-2009,ACE,Action Construction Equip,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,2039167,12.00,-
25-MAR-2009,ALPSINDUS,Alps Industries Ltd.,INTELL INVOFIN INDIA PVT LTD,SELL,250000,6.54,-
25-MAR-2009,AMTEKAUTO,AmtekAuto-Roll Sett,HSBC MUTUAL FUND A/C INDIA PRUDENCE FUND,SELL,800000,70.00,-
25-MAR-2009,AMTEKAUTO,AmtekAuto-Roll Sett,HSBC TRUSTEE CO LTD A/C HDFC EQUITY FUND,SELL,3904000,70.00,-
25-MAR-2009,EDSERV,Edserv Softsystems Limite,EPOCH SYNTHETICS PVT LTD,SELL,70006,23.90,-
25-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,147190,2018.78,-
25-MAR-2009,GMRINDS,GMR Industries Limited,BRP STOCK BROKING SERVICES LIMITED,SELL,120000,85.95,-
25-MAR-2009,HBLPOWER,HBL Power Systems Limited,BLACKSTONE ASIA ADVISORS LLC. DEUTSCHE BANK,SELL,155200,103.00,-
25-MAR-2009,JUBILANT,Jubilant Organsosys Limit,COPTHALL MAURITIUS INVESTMENT LTD FCCB A/C,SELL,915294,90.00,-
25-MAR-2009,KIRIDYES,Kiri Dyes and Chemicals L,SHRIMAL ANIL,SELL,135000,100.00,-
25-MAR-2009,LUMAXIND,Lumax Industries Ltd,KRISMA INVESTMENTS PVT. LTD.,SELL,96942,63.50,-
25-MAR-2009,PRAKASH,Prakash Industries Ltd.,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,1272042,42.75,-
25-MAR-2009,UNITECH,Unitech Ltd,AMBIT SECURITIES BROKING PVT. LTD.,SELL,10906283,31.37,-
Post Session Commentary - March 25 2009
Markets closed the highly volatile session in green terrain on significant buying across the sectoral indices. The Realty (6.32%), Oil & Gas (3.66%), the Metal (3.31%) and Bankex (3%) indices led the rally on expectations of easing of the monetary policy by the Central bank due to the easing of the inflation to less than 1%. In addition, the markets greeted the US Federal Reserve plan to buy bank’s toxic assets. Though, volatility gripped the domestic bourses during the trading ahead of the expiry of March 2009 derivatives contracts on 26th March 2009. During afternoon, market came off the high on some profit booking after smart gain in domestic stocks.
The market opened today on flat note as there was lack of cues from the global markets. The US stock markets closed lower on Tuesday and Asian markets were trading slightly mixed in early trading. However, soon after start domestic market gained some grounds, as buying witnessed among the selective scrips. Further, benchmark indices pared gains after reaching upbeat, tracking US index futures that slipped into red. Though, market bounced back once again as US index futures regained positive movement. Finally, market climbed to the day’s high during final trading on healthy buying interest observed over the ground. BSE Sensex ended above 9,650 level and NSE Nifty closed above 2,950 level. From the sectoral front, most of the indices ended in positive. Besides, strong buying was seen in Reality, Oil & Gas, Metal, Bank, Capital Goods, Power and
IT stocks. Mid Cap and Small Cap stocks also gathered some favor during the trading session. However, PSU stocks witnessed selling from its basket.
Among the Sensex pack 22 stocks ended in green territory and 8 in red. The market breadth indicating the overall health of the market remained positive as 1263 stocks closed in green while 1219 stocks closed in red and 104 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 196.86 points at 9,667.90 and NSE Nifty ended up by 45.65 points at 2,984.35. BSE Mid Caps and Small Caps closed with gains of 21.09 and 10.01 points at 2,841.17 and 3,165.46 respectively. The BSE Sensex touched intraday high of 9,706.47 and intraday low of 9,430.45.
Gainers from the BSE Sensex pack are JP Associates (7.51%), Tata Power (7.12%), Sterlite Industries (6.18%), DLF Ltd (6.22%), Reliance Infra (5.84%), Reliance (5.63%), Tata Steel (4.11%), RCom (3.96%) and HDFC Bank (3.60%).
Losers from the BSE Sensex pack are NTPC Ltd (2.77%), Bharti Airtel (2.05%), ONGC Ltd (2.02%), HUL (1.88%), Tata Motors (1.27%), Ranbaxy Lab (0.76%) and Sun Pharma (0.68%).
Prime Minister Manmohan Singh will meet the industry leaders on March 28 to review the economic situation amid India Inc urging the government to seek poll panel waiver for key infrastructure projects. The Prime Minister, who is likely to seek their suggestions for restoring the growth momentum witnessed in the past four years, corporate sources said, has invited the heads of FICCI along with Assocham and CII and other industry leaders.
On the global markets front the Asian markets which opened before the Indian market, ended mostly lower. Shanghai Composite, Hang Seng, Nikkei 225 and Straits Times index ended higher by 46.86, 288.23, 8.31 and 14.66 points at 2,291.55, 13,622.11, 8,479.99 and 1,691.68 respectively. However, and Seoul Composite gained 7.32 points at 1,229.02. Japan''s exports fell to record low in February from a year earlier. Exports dropepd 49.4% from the previous year, the sharpest fall since the Ministry of Finance began compiling comparable data in 1980.
European markets which opened after the Indian market are trading in red. In Frankfurt the DAX index is trading down by 10.66 points at 4,176.70 and in London FTSE 100 is trading higher by 20.67 points at 3,890.79.
The BSE Reality outperformed the benchmark indices as ended up by (6.32%) or 100.6 points at 1,691.67 on hopes lower rates will spur housing demand. Gainers are Unitech Ltd (16.70%), Housing Development (8.73%), Mahindra Life (8.38%), DLF Ltd (6.22%) and Parsvnath (5.21%).
The BSE Oil & Gas index gained (3.66%) or 248.03 points to close at 7,020.86 as the government issued oil bonds worth Rs. 10,000 crore to oil marketing companies for under-recoveries on the sale of petroleum products. Gainers are Reliance (5.63%), Reliance Pet (5.16%), Cairn Ind (3.83%), Gail India (3.57%) and Reliance Natural Resources (3.54%).
The BSE Metal index closed with increase of (3.31%) or 179.43 points at 5,604.70. Scrips that gained are Welspan Gujarat SR (14.56%), Sterlite Industries (6.48%), Tata Steel (4.11%), JSW Saw (4.10%) and Steel Authority (3.96%).
The BSE Bank stocks advanced by (3%) or 132.77 points to close at 4,552.44 on expectations of lowering interest rates that will result in boosting liquidity into the market. Major gainers are Punjab National Bank (8.57%), Axis Bank (6.84%), HDFC Bank (3.60%), Kotak Bank (3.54%) and ICICI Bank (3%).
The BSE Capital Goods index surged (1.85%) or 110.52 points to close at 6,094.91. Main gainers are Aiaengineer (9.78%), Usha Martin (8.23%), Suzlon Energy (5.03%), ABB Ltd (4.37%) and BHEL (2.70%).
The BSE Power index also ended higher by (1.68%) or 29.84 points to close at 1,810.37. GMR Infra (8.67%), Tata Power (7.12%), Reliance Infra (5.84%), Lanco Infra (5.05%) and Suzlon Energy (5.03%) ended in positive territory.
Novartis India surged 19.99% after Swiss parent Novartis AG made an open offer to buy an additional 39% stake in its Indian unit at Rs. 351 per share, a 6.14% premium over the current market price.
HDFC gained 2.10%. The country largest mortgage player has cut its prime-lending rate by 50 bps to 14% for the current and new customers. The new rate would be effective from March 25. HDFC in the past three months has cut its prime-lending rate by 100 bps.
Indian Oil Corporation Ltd surged 0.59%. It has informed that the Ministry of Corporate Affairs has sanctioned the Scheme of Amalgamation for merger of Bongaigaon Refinery & Petrochemicals Ltd (BRPL) (a subsidiary of IndianOil) with Indian Oil Corporation Ltd under Section 391(2) read with Section 394 of the Companies Act, 1956.
ICICI Bank gained 3%. The bank is looking at mobilizing Rs 1,200 crore through the issue of upper tier-II bonds, which carry a coupon rate of 9.95 per cent and have tenure of 15 years with a call option after 10 years. The issue has a green shoe option of Rs 300-crore.
Tata Communications ended with increase of 2.13%. The company said had received amount of Rs4.24 bn through selling some of its stake in-group firm Tata Teleservices.
Capital goods carry the day
Market recovered most of the day’s losses towards the close of the session, after shedding 41 points in early trades from the day's high of 9706. Tracking weak global indices, Sensex opened marginally below its previous close. The mood remained bearish and the market slipped on profit booking in index pivotals, public sector units and health care stocks. The market once again witnessed selling pressure and Sensex touched the day's low of 9430 by afternoon amid a choppy session. However, the index recovered, shrugging off weakness on substantial buying in realty and oil stocks towards the close and ended the session at 9668, up 197 points. Nifty gained by 46 points to close at 2984.
The market breadth was positive. Of the 2,586 stocks traded on the BSE, 1,263 stocks advanced, 1,219 stocks declined and 104 stocks ended unchanged. Of the 13 sectoral indices, BSE Realty (index of realty shares) flared up by 6.32% followed by BSE Oil & Gas (up 3.66%), BSE Metal (up 3.31%) and BSE Bankex (up 3%). Other indices were up 0.18-1% each.
Among Sensex stocks, JP Associates was the leading gainer and its stock price soared by 7.51% at Rs84.45. Among other stocks, Tata Power advanced 7.12% at Rs740.20, Sterlite Industries jumped 6.48% at Rs347.35, while DLF, Reliance Infrastructure, Reliance Industries, Tata Steel, Reliance Communications, HDFC Bank and ICICI Bank closed with sharp gains of 3-6%. Among laggards, National Thermal Power Corporation slipped 2.77% at Rs179.95, Bharti Airtel shed 2.05% at Rs591.05, ONGC by 2.02% at Rs763.70, Hindustan Unilever fell by 1.88% at Rs234.70 and Tata Motors lost 1.27% at Rs160.
Over 3.66 crore Unitech shares changed hands on the BSE followed by Cals Refineries (2.62 crore shares), Crompton Greaves (1.27 crore shares), Reliance Natural Resources (1.14 crore shares) and Suzlon Energy (1.12 crore shares).
Sensex at 2-1/2 month closing high
Key benchmark indices extended recent strong gains as buying by foreign funds and higher US index futures bolstered sentiment. Expectations of a further cut in policy rates by the Reserve Bank of India (RBI) also aided the surge in what a highly volatile trading session today.
Metal, realty, banking and capital goods stocks gained. Index heavyweight Reliance Industries galloped. The BSE 30-share Sensex jumped 196.85 points, or 2.08%, up about 235 points from the day's low. The barometer index today settled at its highest level in 2-1/2 months.
From a three-year closing low of 8,160.40 on 9 March 2009, the BSE Sensex has risen 1,507.50 points or 18.47%.
The market was highly volatile today ahead of the expiry of March 2009 derivatives contracts on Thursday, 26 March 2009. After opening weak, the market regained strength to trade in green for a brief period before losing steam once again. Investors resorted to profit booking after a recent solid surge in share prices. The market bounced back in morning trade as US index futures rose after US President Barack Obama said there are signs of progress in US efforts to revive the world's largest economy.
The market pared gains after surging to the day's high in early afternoon trade. It lost further ground in choppy trade later as US index futures slipped into the red. The market surged in mid-afternoon trade as US index futures once again moved into the green from red. The market extended gains in late trade.
Volatility may remain high tomorrow, 26 March 2009, ahead of the expiry of March 2009 derivatives contracts on Thursday, 26 March 2009. As per reports, rollover of Nifty positions from March 2009 series to April 2009 was around 50% as of Tuesday, 24 March 2009.
Prime Minister Manmohan Singh on Tuesday, 24 March 2009 said India's economy will revive in a big way in six to seven months as stimulus packages start to take effect. On the same day, Planning Commission Deputy Chairman Montek Singh Ahluwalia scaled down the GDP (gross domestic product) growth projection for the current fiscal to 6.5% from the 7.1% increase estimated by the government earlier during the year, owing to the ongoing global crisis.
Meanwhile, traders and brokers can now have a higher exposure in the currency futures market after the market regulator Sebi on Tuesday, 24 March 2009, doubled the gross outstanding limit to $10 million for small traders, $50 million for brokers. However, the limits for banks - the biggest participants in the market so far - have been left untouched at $100 million.
Europe stocks fell after a firm start. Key benchmark indices in France, Germany and UK were down by between 0.71% to 1.1%.
Asian shares were mostly lower today, 25 March 2009, as investors paused to assess whether a US plan to deal with banks' toxic debt would revive the financial system and help pull the economy out of recession. Key benchmark indices in Hong Kong, China, Japan and Singapore were down by between 0.1% and 2%. Key benchmark indices in South Korea and Taiwan were up by between 0.6% and 1.99%.
Japan reported a record fall in exports in February 2009, with no signs of a demand recovery in its key US and European markets. There was also a decline in Japanese imports in the month. The data pointed to more pain for an economy already mired in its worst recession since the 1974 oil shocks, showing both domestic consumption and overseas demand were crumbling under the weight of the global slowdown.
Trading in US index futures indicated the Dow could rise 3 points at the opening bell on Wednesday, 25 March 2009. The Dow futures moved between green and red.
US stocks ended lower on Tuesday, 24 March 2009 giving back some of the previous session's big gains, as investors paused to re-assess the likely success of the government's bank rescue plan. The Dow Jones industrial average fell 115.65 points, or 1.5%, to 7,659.97. The Standard & Poor`s 500 index fell 16.67 points, or 2.03%, to 806.35, while the Nasdaq Composite index fell 39.25 points, or 2.52%, to 1,516.52.
Closer home, fall in headline inflation to a record low has raised expectations of further easing of the monetary policy by the Reserve Bank of India (RBI) to boost demand in the economy. Inflation based on the wholesale price index (WPI) rose 0.44% in the year through 7 March 2009, a record low for the current series, data released by the government during trading hours on Thursday, 19 March 2009, showed. The rate of growth in inflation was much lower than previous week's annual rise of 2.43%.
Retail inflation is, however, ruling firm even as the whole sale price inflation has touched a record low. Retail inflation as measured by the Consumer Price Index for farm labourer (CPI-AL) and rural labourers (CPI-RL) eased to 10.79% in February 2009, a marginal dip from 11.62% and 11.35% respectively in January 2009. CPI-AL and CPI-RL were at 6.38% and 6.11% in corresponding period last year.
Annual inflation for food articles remains high even though it has eased from the 10 year high of 11.64% witnessed in first week of January 2009. Inflation for food articles stood at 7.35% for first week of March 2009 with double-digit price rise for many items including sugar and gur, pulses and cereals. At the time of announcing a reduction in key short-term interest rates, the RBI said early this month that though consumer price inflation has remained at elevated level due to increase in primary articles prices, it is expected to decline with a lag effect due to sharp fall in the wholesale price inflation.
Earlier the global financial crisis ends and sooner the risk appetite of global investors and global companies improves, better it will be for India Inc. An increase in risk appetite of global investors/global companies will help Indian firms raise overseas funds required for business expansion. The global financial crisis has chocked the overseas funding route for Indian firms.
Raising funds could become difficult for small and medium enterprises (SMEs) with new lending regulations for banks, popularly known as Basel II norms coming into practice from 1 April 2009. All business units, irrespective of their size, will need to take ratings for their enterprises to secure working capital, loans, and other funds from banks.
Lack of funding has hit a slew of long-gestation infrastructure projects in India. World Bank Chief Economist & Senior Vice-President, Dr Justin Yifu Lin, on 13 March 2009, said if India can improve its infrastructure such as electricity, power, transportation and port facilities, it will be well on its path to achieve a 9-10% growth.
Meanwhile, foreign institutional investors are now in buying mode which follows easing of FII selling vigour in the past few days. FIIs bought shares worth a net Rs 2,197.10 crore in eight trading sessions from 13 March 2009 to 24 March 2009.
Foreign funds can take solace in the recent sharp rebound in the rupee against the dollar. However, the currency has been volatile. The partially convertible rupee has weakened in the past two days after a steep rebound. The rupee was at 50.76 per dollar today, below its previous close of 50.73/74.
A recent sharp slide in the rupee to a record low had resulted in a depreciation in the value of FIIs equity portfolio to the extent of the fall in rupee. The rupee hit a record low beyond 52 per dollar early this month.
Domestic institutional investors have been absorbing heavy selling by foreign funds in calendar year 2009. Mutual funds are likely give support to prices to prop-up year end net asset values (NAVs). The financial year ends on 31 March 2009.
The recent steep volatility in the currency
does not augur well for corporate India as it may result in hedging losses for some firms.
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. More so at a time when it is highly unlikely that either Congress or BJP will come to power on its own, i.e., without the support of other small/regional parties. Early estimates point a fractured mandate.
An alliance led by the Congress party is ahead in pre-poll surveys carried out by several polls. But in a move which could undermine the chances of a Congress-led alliance getting more seats in the election, RJD supremo Lalu Prasad has announced candidates for 28 of the 40 constituencies in Bihar including from the three seats where Congress has sitting MPs. RJD is one of the key constituents of the current Congress-led UPA government at the Centre.
The Congress, meanwhile, has reported sealed a seat-sharing pact with the Nationalist Congress Party (NCP) in the populous Maharashtra state. Relations between the two parties have been prickly as the NCP negotiated with opposition parties to undercut Congress and boost its leader's prime ministerial ambitions. Congress will stand for 26 seats in the state and the NCP for 22. The allies are weighing up their options for a similar deal outside the state.
The Congress party on Tuesday 24 March 2009 said it would extend interest relief to farmers and build on the national job guarantee scheme. The focus on populist measures by Congress may weigh on the stock market sentiment especially at a time when the fiscal deficit has risen sharply. Releasing the party manifesto for the election, the Congress party on Tuesday said it would maintain government control over state-run firms in the manufacturing and finance sectors.
A group of smaller political parties, including the communists, have formally launched a Third Front in a bid to provide an alternative to the two main parties viz. the Congress and the BJP.
The BSE 30-share Sensex was up 196.85 points, or 2.08%, to 9,667.90, its highest closing since 6 January 2009. At the day's high of 9,706.47, the Sensex rose 235.43 points in late trade. At the day's low of 9,430.45, the Sensex fell 40.59 points in early trade.
The market breadth, indicating the overall health of the market, turned positive on BSE with 1,269 shares advancing as compared with 1,239 that declined. A total of 61 shares remained unchanged. The breadth was weak earlier in the day.
The S&P CNX Nifty jumped 45.65 points or 1.55% to 2,984.35. It touched a high of 2,996.50.
The BSE clocked a turnover of Rs 4,051 crore, lower than Rs 4,258.49 crore on Tuesday, 24 March 2009.
Nifty March 2009 futures were at 2990.55, at a premium of 6.20 points as compared to the spot closing of 2984.35. Turnover in NSE's futures & options (F&O) segment was Rs 74,456.63 crore, lower than Rs 78,270.59 crore on Tuesday, 24 March 2009.
The BSE Mid-Cap index was up 0.75% and BSE Small-Cap index rose 0.32%. Both the indices underperformed the Sensex.
The BSE Realty index (up 6.32%), the BSE Oil & Gas index (up 3.66%), the BSE Metal index (up 3.31%), the BSE Bankex (up 3%) outperformed the Sensex.
The BSE PSU index (down 0.01%), the BSE Healthcare index (up 0.16%), the BSE FMCG index (up 0.29%), the BSE Auto index (up 0.44%), the BSE TECk index (up 0.48%), the BSE Consumer Durables index (up 0.7%), the BSE IT index (up 1.02%), the BSE Power index (up 1.68%), the BSE Capital Goods index (up 1.85%) underperfomed the Sensex.
From the 30 share Sensex pack, 22 stocks rose while rest fell. Tata Power Company, Jaiprakash Associates, Reliance Infrastructure, Reliance Communications rose by between 3.96% to 7.51%. While Bharti Airtel, NTPC, Ranbaxy Laboratories fell by between 0.76% to 2.77%.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) jumped 5.63% to Rs 1,533.40 ahead of production of gas from KG basin, off the east coast. But the stock came off the day's high of Rs 1,519.90. The company is reportedly expected to start natural gas production from its Krishna Godavari (KG) basin field in early April 2009.
RIL's advance tax payment fell 16.47% to Rs 370 crore in Q4 March 2009 over Q4 March 2008.
GAIL India surged 3.57% on reports the company plans to invest Rs 1,000 crore in setting up 2,000 compressed natural gas dispensing stations on major national highways in the next three years.
Cairn India rose 3.69% on reports the firm is likely to pump out crude oil from its Barmer field in Rajasthan in a month.
Shares of oil marketing companies rose for the second straight day in a row after the government issued oil bonds worth Rs 10,000 crore to compensate them for under-recoveries on sale of petroleum products at a controlled price during the current financial year. BPCL and HPCL rose by between 0.01% and 0.59% respectively.
Indian Oil Corporation rose 0.59% after company said the government has approved a proposal to absorb its subsidiary Bongaigaon Refinery & Petrochemicals (BRPL). Indian Oil will issue four shares for every 37 shares in BRPL. BRPL rose 1.83%.
Indian Oil Corporation has been issued oil bonds worth Rs 5,817.27 crore, while Bharat Petroleum Corporation has been issued bonds worth Rs 2,144.32 crore. Hindustan Petroleum Corporation has got bonds worth Rs 2,038.41 crore.
India's largest commercial vehicle maker by sales Tata Motors fell 1.27% on profit taking after recent sharp gains. The world's cheapest car Tata Nano was unveiled in Mumbai by Tata Group Chairman Ratan Tata on Monday 23 March 2009. The Tata Nano was launched in three models - Base, CX and LX. The booking for Tata Nano will be held between 9 April 2009 and 25 April 2009. The first set of Tata Nano will be delivered in the first week of July 2009. Within 60 days of the closure of bookings, Tata Motors will process and announce the allotment of 1,00,000 cars in the first phase of deliveries, through a computerised random selection procedure.
India's largest car maker by sales Maruti Suzuki India fell 0.07%. As per reports, firm is working towards launching new cars and improvising the existing ones to counter attack Tata Motors' recently unveiled world's cheapest car Tata Nano. In a tussle to capture the Indian passenger car market, Maruti is likely to launch Maruti Splash or Ritz in the second week of May 2009. Ritz will mount a 1.2 litre (KB series) petrol or 1.3-litre diesel engine and will be priced at around Rs 4-5.5 lakh. India's largest tractor maker by sales Mahindra & Mahindra rose 1.55%. While India's largest motorbike maker by sales Hero Honda Motors rose 0.31%.
Some FMCG stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. United Spirits, Tata Tea, ITC, United Breweries rose by between 1.26% to 6.11%. India's largest FMCG firm by sales Hindustan Unilever fell 1.88%. The company's advance tax payment rose 30% to Rs 130 crore in Q4 March 2009 over Q4 March 2008.
Outsourcing focussed IT stocks rose on hopes of a revival in the US economy, the biggest market for IT firms and on a weaker rupee. India's largest software services exporter by sales TCS rose 0.87%. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.
India's fifth largest IT major by sales HCL Technologies fell 0.48%. India's third largest software services exporter, Wipro rose 0.04% even as its ADR fell 2.99% on Tuesday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).
India's second largest software services exporter Infosys Technologies rose 1.26% even as its ADR fell 4.92% on Tuesday. Recent reports said it may win a large IT project from the government, which will run on a transaction-based pricing model, similar to the passport processing contract its larger rival Tata Consultancy Services (TCS) won last year. The contract is among the many large IT contracts that are up for bidding from government departments or public sector undertakings, reports suggest.
The Indian rupee weakened for the second day on Wednesday, falling to its lowest in a week, weighed by gains in the dollar against the euro and Asian units and demand from importers and oil refiners. 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 surged on hopes lower rates will spur housing demand. DLF, Indiabulls Real Estate, Housing Development & Infrastructure and Unitech rose by between 2.65% to 16.7%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
Metal shares rose on hopes of a recovery in the global economy and on recent imposition of a safeguard duty the Indian government recently on import of some aluminium products. Steel Authority of India, Sterlite Industries, Tata Steel and Hindalco Industries rose by between 0.5% to 6.48%.
Weak rupee also aided the recovery in metal shares. A slide in the rupee makes imports costlier, reducing the threat of cheap import of metals in India.
Banking stocks gained in volatile trade on hopes lower interest rates may boost lending growth. India's largest bank in terms of assets and branch network State Bank of India rose 1.49%. 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% to Rs 365.75, off the day's low of Rs 347. Its American depository receipts (ADR) fell 3.09% on Tuesday 24 March 2009. ICICI Bank's advance tax payment remained unchanged at Rs 250 crore in Q4 March 2009 when compared to Q4 March 2008.
India's second largest private sector bank by operating income HDFC Bank rose 3.6%. Its ADR fell 5.85% on Tuesday. Its advance tax payment rose 10% to Rs 275 crore in Q4 March 2009 over Q4 March 2008.
India's biggest dedicated housing finance firm by operating income HDFC rose 2.1% after it announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective Wednesday 25 March 2009.
Bond yields inched higher in early trade on Wednesday as investors pared positions ahead of the details of the government's borrowing plan for the first six months of the next fiscal year FY 2010. At 9:20 IST, the most traded 6.05% 2019 bond yield was at 6.76%, five basis points above Tuesday's close. It is up 24 points so far this week.
The government plans to borrow a record Rs 362000 crore in FY 2010 and a calendar for the first half will be finalised on Thursday, 26 March 2009. It may be recalled that a solid surge in bond prices (bond prices rise when yields fall) had boosted treasury profits of banks in Q3 December 2008.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 2.54%. As per recent reports L&T and Grasim Industries are on the verge of settling their 7-year old legal dispute over Grasim`s 0.62% stake in L&T and the latter`s 11.49% stake in Ultratech, the Birla group cement firm. Grasim Industries and Ultratech Cement are Aditya Birla group companies. Other capital goods stocks Bharat Heavy Electricals, Punj Lloyd, Praj Industries, ABB rose by between 1.55% to 4.37%.
Unitech clocked the highest volume of 3.66 crore shares on BSE. Cals Refineries (2.62 crore shares), Crompton Greaves (1.27 crore shares), Reliance Natural Resources (1.14 crore shares) and Suzlon Energy (1.12 crore shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 445.36 crore on BSE. Akruti City (Rs 244.86 crore), ICICI Bank (Rs 203.19 crore), Reliance Capital (Rs 168.82 crore) and Reliance Infrastructure (Rs 152 crore) were the other turnover toppers in that order.
Pre Session Commentary - March 25 2009
Today domestic markets are likely to open negative as the other Asian markets have opened with blood bath and the US markets closed in red yesterday. The profit booking pressures on the broader level shows the weak sentiments prevailing across the world. A phenomenal rally in the previous trading sessions has prompted investors to book profits. Today one may witness further profit booking pressures as the markets closed flat yesterday. The early gains are yet to be discounted at broader level. One may witness cautious trade with an essence of selling pressure.
On Tuesday, the domestic markets opened with a positive gap but could not withstand the profit booking pressures. The positive opening was backed by the US treasury plan of $ 1 trillion and hence phenomenal opening of other Asian markets as well. The northward movement was however later impeded by immense selling pressures of profit booking. It was very obvious that the gains piling up since the last week was at its peak level for fall. Unlike the domestic markets, other Asian markets managed to close with remarkable gains. However due to the intense selling pressure Sensex closed with shallow gains, whereas NSE Nifty ended flat. European markets on the other hand had a mixed trading. Sectors like Bankex, Realty, CG, FMCG and Auto ended in green, however sectors like Metal, CD and PSU closed in red. During the session we expect the markets to be trading highly volatile with negative bias.
The BSE Sensex closed with gain of 47.02 points at 9,471.04 and NSE Nifty ended with a marginal loss of 1.20 points at 2,938.70. BSE Mid Caps and BSE Small Caps ended with losses of 16.36 points and 21.47 points at 2,820.08 and 3,155.45 respectively. The BSE Sensex touched intraday high of 9,699.04 and intraday low of 9,402.64.
The US stock markets closed lower on Tuesday after a sharp rally in the previous session as investors paused to re-assess the likely success of the government''s latest plans to clean up bank balance sheets and revive the financial system. Further there are reports that the SEC is considering modifying its uptick rules. Meanwhile, the Fed Chairman Bernanke and Treasury Secretary Geithner were put at the mercy of a House Financial Services Committee hearing regarding the rescue of AIG. US light crude oil for May delivery grew by 0.5% to settle at $54.05 a barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed low by 115.65 points at 7,660.21, the NASDAQ Composite (RIXF) index fell 37.18 points to close at 1,518.59 and the S&P 500 (SPX) fell by 16.57 points to close at 806.35.
Today major stock markets in Asia are trading mixed. Hang Seng is trading lower by 49.56 points at 13,860.78 followed by Japan''s Nikkei by 12.53 points at 8,475.77, Strait Times by 6.87 points at 1,699.47. While Taiwan Weighted and Seou Composite are trading with gains of 82.94 points and 2.14 points at 5,325.12 and 1,223.84 respectively.
Indian ADRs ended down. In technology sector, Patni Computers ended lower by 8.11% along with Infosys that ended down by 4.92%. Further, Satyam lost 3.07% and Wipro closed down by 2.99%. In banking sector ICICI Bank and HDFC Bank lost 3.09% and 5.85% respectively. In telecommunication sector, MTNL dropped by 5.20% along with Tata Communication by 1.56%. Further, Sterlite Industries decreased by 7.61%.
The FIIs on Tuesday stood as net buyer in equity and net seller in debt. Gross equity purchased stood at Rs 1,445.90 Crore and gross debt purchased stood at Rs 156.90 Crore, while the gross equity sold stood at Rs 1,130.20 Crore and gross debt sold stood at Rs. 496.20 Crore. Therefore, the net investment of equity and debt reported were Rs 315.80 Crore and Rs (339.30) Crore respectively.
On Tuesday, the Indian rupee closed at 50.73/74, 0.5% weaker than its previous close 50.46/47. Rupee lost its charm as the domestic stock markets pared its gains towards the closing bell.
On BSE, total number of shares traded were 34.31 Crore and total turnover stood at Rs 4,258.49 Crore. On NSE, total number of shares traded was 83.99 Crore and total turnover was Rs 13,308.11 Crore.
Top traded volumes on NSE Nifty – Unitech with 68325551, Suzlon Energy with 52820733 shares, ICICI Bank with 22747200 shares, SAIL with 21864661 shares followed by DLF with 17455586 shares.
On NSE Future and Options, total number of contracts traded in index futures was 1444913 with a total turnover of Rs 20,808.98 Crore. Along with this total number of contracts traded in stock futures were 750002 with a total turnover of Rs 22,635.53 Crore. Total numbers of contracts for index options were 2200776 with a total turnover of Rs 32,782.07 Crore and total numbers of contracts for stock options were 63936 and notional turnover was Rs 2,044 Crore.
Today, Nifty would have a support at 2,872 and resistance at 2,969 and BSE Sensex has support at 9,313 and resistance at 9,595.
Market seen lower in volatile trade
Key benchmark indices are likely to open lower following mixed to negative global cues. The SGX Nifty futures for March 2009 series declined 19.50 points in Singapore.
However volatility may remain high ahead of the expiry of March 2009 derivatives contracts for March 2009 series on Thursday, 26 March 2009. As per reports, rollover of Nifty positions from March 2009 series to April 2009 was around 50% as on Tuesday, 24 March 2009.
Planning Commission Deputy Chairman Montek Singh Ahluwalia on Tuesday, 24 March 2009 scaled down the GDP (gross domestic product) growth projection for the current fiscal to 6.5% from the 7.1% increase estimated by the government earlier during the year, owing to the ongoing global crisis.
Meanwhile, traders and brokers can now have a higher exposure in the currency futures market after the market regulator Sebi on Tuesday, 24 March 2009 doubled the gross outstanding limit to $10 million for small traders, $50 million for brokers. However, the limits for banks — the biggest participants in the market so far — have been left untouched at $100 million.
Asian shares were mixed retreating from two-month highs today, 25 March 2009 as investors paused to assess whether a U.S. plan to deal with banks' toxic debt would revive the financial system and help pull the economy out of recession.
Key benchmark indices in China, South Korea and Taiwan were up by between 0.15% and 1.58%. However indices in Hong Kong, Japan and Singapore were down by between 0.11% and 0.40%.
Japan reported a record fall in exports in February 2009, with no signs of a demand recovery in its key U.S. and European markets, as well as a sharp decline in imports. The data pointed to more pain for an economy already mired in its worst recession since the 1974 oil shocks, showing both domestic consumption and overseas demand were crumbling under the weight of the global slowdown.
US stocks ended lower on Tuesday, 24 March 2009 giving back some of the previous session's big gains, as investors paused to re-assess the likely success of the government's bank rescue plan.
The Dow Jones industrial average fell 115.65 points, or 1.5%, to 7,659.97. The Standard & Poor`s 500 index fell 16.67 points, or 2.03%, to 806.35, while the Nasdaq Composite index fell 39.25 points, or 2.52%, to 1,516.52.
Back home, key benchmark indices saw divergent trend on Tuesday, 24 March 2009, with the BSE Sensex logging small gains while its peer the S&P CNX Nifty ended marginally lower after a strong start as European stocks gave up early gains and lower US index futures.
The BSE 30-share Sensex rose 47.02 points or 0.5%, to 9,471.04, its highest close since 13 February 2009. The S&P CNX Nifty was down 1.20 points or 0.04% to 2,938.70. It came off a high of 3,017.40.
From a three-year closing low of 8,160.40 on 9 March 2009, the BSE Sensex has risen 1,310.64 points or 16.06%.
According to provisional data on NSE, foreign institutional investors (FIIs) were net buyers worth Rs 501.76 crore while mutual funds sold shares worth Rs 192.99 crore on Tuesday, 24 March 2009.
Market may remain cautious
The market is likely to witness cautious trend as major Asian gauges like the Nikkei, the Kospi index and the Jakarta index have declined in current trades and may drag down the indices in early trades. Although the domestic indices moved up in the last couple of sessions, intra-day volatility remains the major concern. Among the local indices, the Nifty may slip to 2900 and 2850 while on the upside it could test 3000 to 3050 level. The Sensex has a likely support at 9300 and could test higher levels at 9600.
US indices closed weak on Tuesday as investors stepped back after the previous session's big rally, Wall Street's best in four months. While the Dow Jones dropped 115 points at 7660, the Nasdaq was down 39 points at 1517.
Indian floats, also, bucked the weak US market trend and ended lower. Patni Computer, HDFC Bank and MTNL lost over 5-8% each, while Infosys, Wipro, Satyam, Dr Reddy, Tata Motors, ICICI Bank and VSNL lost around 1-4% each. Rediff however, was the only gainer amongst the ADRs and gained by 1.22% respectively.
Crude oil prices gained marginally. The US light crude oil for May series advanced by 18 cents at $53.98 a barrel. In the commodity space, the Comex gold for April delivery declined by $28.70 to settle at $923.80 an ounce.
US markets drop
Indices witness a lackluster day with no major catalyst
Stocks at Wall Street managed to somewhat steady during the day on Tuesday, 24 March, 2009 but ended in the red ultimately. After yesterday's huge rally, there was as such no market moving news or event today. Fed Chairman Ben Bernanke and Treasury Secretary Geithner endured a question and answer session at a House Financial Services Committee meeting regarding the rescue of AIG. There was single economic report scheduled today pertaining to the housing sector.
Stocks started the day in the red and ended with modest losses. For a very brief period, Dow had inched up to the green.
After starting the day 86 points down earlier during the day, The Dow Jones Industrial Average ended lower by 115 points at 7,660. The Nasdaq Composite Index, ended lower by 37 points at 1,518. S&P 500 ended lower by 17 points at 806.
All ten sectors registered losses led by the financial sector. Among Dow components, while GE tried to support the Dow, Microsoft and Intel were big losers.
Among major economic report for the day, The Federal Housing Finance Agency reported today that U.S. home prices rose 1.7% in January compared with December. It was the first monthly increase in a year. Home prices are down 6.3% in the past year and are down 9.6% from the peak in April 2006. In December, the year-over-year decline was 8.8%. December's index, originally reported as a 0.1% increase, was revised down to a 0.2% decline.
The report detailed that prices rose or were flat in eight of nine regions in January. only the Pacific states registered a decline, down 0.9%. Prices rose 3.9% in the East North Central region, which includes most of the Great Lakes states. Prices rose 3.6% in the South Atlantic region. In the past year, prices are down in all nine regions, led by the Pacific with a 21.1% decline. The smallest price decline has been the 0.4% drop in the West South Central (which includes Texas, Oklahoma, Arkansas and Louisiana).
Crude prices ended lower on Tuesday, 24 March, 2009 as traders anticipated that tomorrow's weekly inventory report will show build up in crude inventories for last week. Market is expecting the report to show a build up of more crude inventories to the tune of more than 1 million barrels. The rebounding dollar was also the reason for lower crude price.
On Tuesday, crude-oil futures for light sweet crude for May delivery closed at $53.11/barrel (lower by $0.69 or 1.3%) on the New York Mercantile Exchange. Earlier it fell to a low of $52.45 and also rose to a high of $53.50. Last week, crude ended higher by 10.4%. For the month of February, crude prices had ended higher by 1.5%.
In the currency market today, the dollar strengthened against its rivals. The dollar index, which measures the strength of the dollar against a basket of six currencies rose 0.3%.
Tomorrow, among economic reports expected are February durable goods orders data and February new home sales data. In addition, the weekly crude inventory report is due at 10:30ET.
Daily News Roundup - March 25 2009
- Coal India expects the exploration of coal block for its proposed coal gasification project in JV with ONGC to be complete within 18 months. (BS)
- Reliance Infrastructure achieved the financial closure for the Rs28.8bn New Delhi Airport Express line project. (FE)
- Crompton Greaves will acquire 41% stake in Avantha Power and Infrastructure Ltd for Rs2.3bn. (Mint)
- Idea forays into global long distance business. (ET)
- Essar Group, GVK Power and Infrastructure and BG Group along with other firms have bid to hire Dhabol’s LNG terminal which will become operational next month. (FE)
- HDFC announced a 50 bps reduction in its retail PLR to 14%. (ET)
- Ashok Leyland in association with Australian Eden Energy developed hythane engines to power its buses. (Mint)
- Bombay Rayon Fashions board approved raising of Rs3.3bn through a preferential allotment of 18mn shares at Rs185 each. (Mint)
- Satyam buyers may have to pay Goldman Sachs and Avendus. (ET)
- Government suggests creation of a separate bank account for Maytas Properties’ flagship project Maytas Hill Country to protect the investors’ money. (FE)
- The board of Maytas Infra will meet its lenders and partners in various BOT projects on Wednesday to consider the process of debt restructuring. (BL)
- NIIT bagged Rs214mn 5 year contract from Rajasthan government for introducing computer related learning in 1672 schools. (F)
- Patel Engineering bagged an order worth Rs8bn from Narmada Valley Development Authority. (ET)
- Welspun Power and Steel has raised Rs7bn debt to part finance its Rs10.3bn acquisition of Vikram Ispat from Grasim Industries. (ET)
- Firstsource has reorganized its businesses into 4 strategic business units, which will function as an independent profit centre. (ET)
- Essar Steel is setting up service centres in the country, at an investment of Rs750mn each. (BS)
- Nagarjuna Fertilisers and Chemicals commissioned a 450MTPD carbon dioxide recovery plant at its existing urea facilities at Kakinada, Andhra Pradesh. (BS)
- Orissa High Court has asked SEBI to investigate if Bhushan Steel’s group companies had violated SEBI Takeover Regulations and purchased shares of Orissa Sponge Iron and Steel. (ET)
- Ratnagiri Gas and Power is facing technical snag and insurance glitches which may result in delay in generation of additional power. (ET)
- Ministry of Finance and RBI will meet tomorrow to discuss the governments borrowing programme for the first half of FY10. (ET)
- FIPB stated that foreign investors in Indian real estate cannot sell their stakes to another foreign investor before 3 years. (ET)
- Finance ministry has rejected banks proposal to fix the period for which private partners in PPP road projects collect tolls. (ET)
- IATA expects India’s air travel demand to fall by 7%. (FE)
- Cement consumption in the country grew by 8% in the current year against 9% last year. (FE)
- The government today imposed safeguard duty on import of some aluminium and chemical products. (BS)
- The Finance Ministry scrapped customs duty on crude soyabean oil. (BL)
Nothing great to expect!
Greatness is nothing unless it be lasting.
After a great start on Monday, weakness did set in after all on Tuesday. The bulls expectedly failed to sustain the buying momentum. Key indices tumbled from a day's high even as Asian markets closed mostly higher.
To sum up the recent gains, FIIs have been buying, global markets have staged a smart comeback, No major bad news has hit Wall Street and currency fluctuations have ebbed to an extent.
The US markets ended in the red. The Dow Jones lost 115 points, or 1.5%. The S&P 500 fell 17 points, or 2%. The Nasdaq was down 40 points, or 2.5%. Asian markets are trading lower.
US President Barack Obama says his administration has a strategy in place to 'attack this crisis on all fronts' adding that there are no quick fixes.
"We'll recover from this recession, but it will take time, it will take patience, and it will take an understanding that, when we all work together, when each of us looks beyond our own short-term interest to the wider set of obligations we have towards each other, that's when we succeed," he said.
Back to our market, we expect the market to open flat and thereafter slide. Some volatility could set in ahead of tomorrow's F&O expiry. Given the recent rally, the bulls and the bears are pretty indecisive at this juncture.
Like the Sensex, the Nifty too will switch to a free float market capitalisation methodology. Investors may start making adjustments to their portfolios before the new formula comes into effect from June 26 ’09.
In other news in the media:
Reliance Industries and Cairn are expected to start production of natural gas from KG basin and crude oil from the Barmer field respectively in a month.
Kalpataru Power Transmission bagged 3 orders worth Rs4bn from the PGCIL for 765kv and 400kv transmission line projects.(BL)
MRPL will buy Cairn India’s initial output from its Barmer field.
DLF plans to book ~Rs20bn revenue from sale of 4.5mn sq ft of commercial space to the group company, DAL.
Tata Motors chairman, Ratan Tata, says job losses and redundancies would be inevitable unless British government provides credit support to JLR.
Government may soon allow NTPC to offer an additional 15% of electricity generated from all new plants to home states.
Indian markets ended with modest gains on Tuesday as key indices were unable to hold on to their gains. After surging past the 3000 mark, profit booking coupled with weak European markets dragged key indices from day’s high. The BSE benchmark Sensex slipped nearly 300 points and the NSE Nifty index declined almost 100 points from their respective day’s high.
The F&O segment recorded its highest non-expiry day turnover since January 2008. The F&O segment recorded a turnover of ~77,000cr and the total turnover was at ~94,000cr.
The BSE Sensex was up 47 points to close at 9,471 and the NSE Nifty was flat at 2,938.
Among the 30-components of Sensex, 16 stocks ended in positive terrain and 14 stocks ended in the red. HDFC Bank, ICICI Bank, HDFC, BHEL, Ranbaxy and Bharti Airtel were among the top gainers.
Reliance Industries shares gained by 1% to Rs1451. According to reports, the company has raised the marketing margin it will charge on selling natural gas from eastern offshore KG-D6 fields to US$0.15 per mmbtu from US$0.12 per mmBtu earlier. The scrip touched an intra-day high of Rs1472 and a low of Rs1442 and recorded volumes of over 1.9mn shares on BSE.
Crompton Greaves erased gains and slipped sharply by 9% to Rs122. The stock had surged after the board of directors approved Buy-back of fully paid Equity Shares of Rs2/- each, from the open market through the Stock Exchanges, at a price not exceeding Rs170/- per share, upto an amount of Rs2241.52mn being 25% of the total Paid-Up Capital plus Free Reserves as per the audited Balance Sheet of the Company for the year ended March 31, 2008.
Shares of Bajaj Hindusthan gained by a percent to Rs45.1 after the company announced that the board of directors would meet on April 01, 2009, to consider, issue of equity shares / convertible securities / warrants to the promoters on preferential allotment basis.
The scrip has touched an intra-day high of Rs47.2 and a low of Rs44.8 and has recorded volumes of over 1.2mn shares on BSE.
Shares of Vakrangee Softwares slipped by 0.5% to Rs23. The company announced that its board of directors would meet on March 25, 2009, to consider incorporation of 100% subsidiary at Philippines and setting up of STP (Software Technology Park) unit. The scrip touched an intra-day high of Rs24.6 and a low of Rs23 and recorded volumes of over 0.1mn shares on BSE.
Nagarjuna Fertilizers announced that the company has completed installation of the 450 MTPD Carbon Dioxide Recovery (CDR) Plant to meet the shortfall in CO2.
The plant is being commissioned on March 24, 2009 and commercial production shall be declared to be effective from March 24, 2009.
The stock ended slipped 3% to Rs15.2 after hitting an intra-day high of Rs16 and a low of Rs15.10 and recorded volumes of over 1mn shares on BSE.
Looking at the offloading towards the end, the slide may continue further. There could be wild swings for sure ahead of F&O expiry also the political uncertainty would continue to take its toll over the market sentiment.
Asian stocks open on a negative note
Asian stocks declined after Japan`s exports slumped by a record, metal prices dropped and Sanyo Electric forecast a loss.
Sony Corp fell more than 3%. Panasonic which is acquiring Sanyo, declined almost 4%.
Japanese benchmark index Nikkei fell 63.04 points, or 0.74%, to trade at 8,425.26.
Hong Kong`s Hang Seng index dropped 155.57 points, or 1.12%, to trade at 13,754.77.
China`s Shanghai Composite declined 10.80 points, or 0.46%, to trade at 2,327.62.
Taiwan`s Taiex index went up 34.19 points, or 0.65%, to trade at 5,276.37.
South Korea`s Kospi index slipped 7.75 points, or 0.63%, to trade at 1,213.95.
Singapore`s Straits Times decreased 14.90 points, or 0.87%, to trade at 1,691.44. (7.50 a.m., IST).
Bullion metals end lower
Gold and silver drop due to rebounding dollar
Bullion metal prices ended lower on Tuesday, 24 March, 2009. The rebounding dollar was responsible for precious metals ending lower today.
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 Monday, Comex Gold for April delivery fell $28.7 (3%) to close at $923.8 an ounce on the New York Mercantile Exchange. Last week, the yellow metal ended higher by 2.8%. 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 12.1%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (7.9%) since then.
On Tuesday, Comex silver futures for May delivery fell 51 cents (3.7%) to end at $13.357 an ounce. In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 22.6% this year. For 2008, silver had lost 24%.
In the currency market today, the dollar strengthened against its rivals. The dollar index, which measures the strength of the dollar against a basket of six currencies rose 0.3%.
Yesterday, the Treasury Department had unveiled their plan about buying back most of the bank's toxic assets thereby cleaning up their balance sheet to the extent possible. Treasure Secretary Tim Geithner detailed today that the Treasury plans to create a series of public-private investments funds to buy $500 billion to $1000 billion in legacy loans and securities. To encourage participation from the private sector, the government is taking on much of the risk and offering subsidies. The move had boosted investor confidence and the same took precious metals little higher yesterday.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Crude sheds some glaze
Oil prices give up earlier gains
Crude prices ended lower on Tuesday, 24 March, 2009 as traders anticipated that tomorrow's weekly inventory report will show build up in crude inventories for last week. Market is expecting the report to show a build up of more crude inventories to the tune of more than 1 million barrels. The rebounding dollar was also the reason for lower crude price.
On Tuesday, crude-oil futures for light sweet crude for May delivery closed at $53.11/barrel (lower by $0.69 or 1.3%) on the New York Mercantile Exchange. Earlier it fell to a low of $52.45 and also rose to a high of $53.50. Last week, crude ended higher by 10.4%. For the month of February, crude prices had ended higher by 1.5%.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 63% since then. Year to date, in 2009, crude prices are higher by 20.5%. On a yearly basis, crude prices are lower by 50%.
In the currency market today, the dollar strengthened against its rivals. The dollar index, which measures the strength of the dollar against a basket of six currencies rose 0.3%.
Yesterday, the Treasury Department had unveiled their plan about buying back most of the bank's toxic assets thereby cleaning up their balance sheet to the extent possible. Treasure Secretary Tim Geithner detailed today that the Treasury plans to create a series of public-private investments funds to buy $500 billion to $1000 billion in legacy loans and securities. To encourage participation from the private sector, the government is taking on much of the risk and offering subsidies. The move had boosted investor confidence and the same took precious metals little higher yesterday.
Also at the Nymex on Tuesday, April reformulated gasoline rose 1.2% to $1.5055 a gallon and April heating oil gained 0.2% to $1.4736 a gallon.
April natural-gas futures were almost flat at $4.303 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
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