India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Thursday, March 26, 2009
Nifty April 2009 futures above 3000 mark
Turnover rises
Nifty April 2009 futures were at 3075.50, at a discount of 6.75 points as compared to the spot closing of 3082.25. Turnover in NSE's futures & options (F&O) segment increased to Rs 76,957.01 crore from Rs 74,456.63 crore on Wednesday, 25 March 2009.
Reliance Industries April 2009 futures were at premium at 1571.55 compared to the spot closing of 1565.50.
State Bank of India April 2009 futures were at premium at 1097.65 compared to the spot closing of 1095.50.
Bharat Heavy Electricals April 2009 futures were at a huge discount at 1538.25 compared to the spot closing of 1565.90.
In the cash market, the S&P CNX Nifty gained 97.90 points or 3.28% at 3082.25.
BSE Bulk Deals to Watch - March 26 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
26/3/2009 523395 3M INDIA LTD RUANE CUNNIFF AND GOLDFARB INC ACACIA INSTITUTIONAL PARTNERS LP B 58323 860.00
26/3/2009 523395 3M INDIA LTD IDFC MUTUAL FUND S 125912 860.00
26/3/2009 530499 A K CAPITAL FIRSTRAND PUBLIC LTD S 74002 142.00
26/3/2009 532799 AKRUTI CITY OPG SECURITIES P LTD B 532808 1333.21
26/3/2009 532799 AKRUTI CITY OPG SECURITIES P LTD S 532808 1334.52
26/3/2009 532830 ASTRAL POLY RAJASTHAN GLOBAL SECURITIES LTD B 113290 32.54
26/3/2009 532830 ASTRAL POLY MITEN A. MEHTA B 80000 33.99
26/3/2009 532830 ASTRAL POLY RAJASTHAN GLOBAL SECURITIES LTD S 82540 33.90
26/3/2009 590059 BIHAR TUBES RAJASHTAN GLOBAL SECURITIES LTD B 100000 34.00
26/3/2009 590059 BIHAR TUBES APL INFRASTRUCTURE PVT LTD B 471000 34.00
26/3/2009 590059 BIHAR TUBES ELARA INDIA OPPORTUNITIES FUND LIMITED S 1000000 34.00
26/3/2009 532885 CENTRAL BK MORGAN STANLEY MAURITIUS COMPANY LIMITED B 5437452 33.25
26/3/2009 532885 CENTRAL BK TRAFELET COMPANY UK LLP AC DELTA FUND MAURITIUS LIMITED S 5437452 33.25
26/3/2009 526546 CHOKSI LABOR VYANGESH CHOKSI B 120000 6.10
26/3/2009 506390 CLARI CHEM HARDIK B. PATEL B 194628 165.00
26/3/2009 506390 CLARI CHEM PRASHANT PATEL S 320000 165.12
26/3/2009 530393 DB(INTR) STBR ASHWIN GANESHMAL SHAH HUF B 49931 29.15
26/3/2009 530393 DB(INTR) STBR ANIL GANESHMAL SHAH HUF B 50000 29.15
26/3/2009 530393 DB(INTR) STBR PARESH JAYSUKHLAL DESAI B 40000 29.15
26/3/2009 530393 DB(INTR) STBR SADHNA RATHI S 29000 29.15
26/3/2009 530393 DB(INTR) STBR SAROJ RATHI S 28788 29.15
26/3/2009 508860 DIAMANT INV ARTISTIC FINANCE PVT LTD S 6000 51.00
26/3/2009 508860 DIAMANT INV FANCY INVESTRADE PVT LTD S 9500 51.28
26/3/2009 532326 INTENS TECH LAKSHYA IMPEX PVTLTD B 403272 11.67
26/3/2009 532326 INTENS TECH ITF MAURITIUS S 403272 11.67
26/3/2009 522183 ITL INDUSTRI HARDIK B. PATEL B 18080 16.00
26/3/2009 522183 ITL INDUSTRI RUCHIT B. PATEL S 18080 16.00
26/3/2009 532705 JAGRAN PRAK MORGAN STANLEY MAURITIUS COMPANY LIMITED B 1546085 55.50
26/3/2009 532705 JAGRAN PRAK TRAFELET COMPANY UK LLP AC DELTA FUND MAURITIUS LIMITED S 1546085 55.50
26/3/2009 500380 JK LAKSHMI MORGAN STANLEY MAURITIUS COMPANY LIMITED B 802004 40.80
26/3/2009 500380 JK LAKSHMI TRAFELET COMPANY UK LLP AC DELTA FUND MAURITIUS LIMITED S 802004 40.80
26/3/2009 505750 JOSTS ENG CO RAMSWROOP SOMANI B 4000 121.50
26/3/2009 505750 JOSTS ENG CO RAMSWROOP SOMANI S 4000 129.75
26/3/2009 513509 KALYANI FORG EQUITY INTELLIGENCE INDIA PRIVATE LTD S 77291 56.00
26/3/2009 512455 LLOYDS MET E PAWAN ARYA S 1250000 20.00
26/3/2009 512455 LLOYDS MET E RAVI ARYA S 1250000 20.00
26/3/2009 517334 MOTH SUMI SY SAMVARDHANA MOTHERSON FIN LTD B 34171875 60.30
26/3/2009 517334 MOTH SUMI SY SOJITZ CORPORATION S 34171875 60.30
26/3/2009 590028 NICCO CORP PINKY EXHIBITORS PVT LTD B 1200000 4.03
26/3/2009 590028 NICCO CORP IND FINANCE AND SEC TRUST PVT LT S 1200000 4.03
26/3/2009 532606 PAREKH ALUM MANISH MARU B 150000 53.00
26/3/2009 532606 PAREKH ALUM PIONEER NIRMAN INDIA PRIVATE L B 139248 53.00
26/3/2009 503100 PHOENIX MILL KOTAK MAHINDRA UK LTD AC SANDSTONE CAP INDIA MASTER FUND B 1680390 59.00
26/3/2009 526407 RIT PRO IND AMULYA LEASING AND FINANCE LTD B 765000 17.05
26/3/2009 526407 RIT PRO IND CONSOLIDATED SECURITIES LTD S 601000 17.05
26/3/2009 531324 ROSELABS FIN ASHWINI HI RISE ANF FARMS PVT LTD B 50000 5.23
26/3/2009 508961 SHRICON INDU NANDKISHORE AGRAWAL B 49150 55.55
26/3/2009 508961 SHRICON INDU SWASTIKA FIN LEASE LTD S 49150 55.55
26/3/2009 508976 SPANCO JITENDRA B SHAH HUF B 168875 29.25
26/3/2009 508976 SPANCO D THAKKAR CONSTRUCTIONS PRIVATE LIMITED S 168875 29.25
26/3/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD B 55925 18.41
26/3/2009 519228 TEMPT.FOODS ARION COMMERCIAL PRIVATE LIMITED B 195015 25.82
26/3/2009 532311 TUTIS TECH CHIRAG D PAREKH B 86302 14.57
26/3/2009 532343 TVS MOTOR L MORGAN STANLEY MAURITIUS COMPANY LIMITED B 2600000 20.95
26/3/2009 532343 TVS MOTOR L TRAFELET COMPANY UK LLP AC DELTA FUND MAURITIUS LIMITED S 2600000 20.95
26/3/2009 500427 UNIFLEX CABE PINKY EXHIBITORS PVT LTD B 125000 7.43
26/3/2009 500427 UNIFLEX CABE IND FINANCE AND SEC TRUST PVT LT S 125000 7.43
26/3/2009 531390 UPSURGE INVS KIRIT V DAVE B 430000 5.56
26/3/2009 531390 UPSURGE INVS SUPRIYA ENTERPRISES S 415000 5.56
26/3/2009 531668 VISION CORPO BALLY MERCHANDISE LTD B 600000 5.97
26/3/2009 531668 VISION CORPO DEEP PRAKASH SHAH S 600000 5.97
26/3/2009 531249 WELL PACK PA GANDHI MANISHA NAVNEETLAL B 23400 133.35
26/3/2009 531249 WELL PACK PA KAMLESH NAHAR B 37000 134.50
26/3/2009 531249 WELL PACK PA TUSHAR RAMESHBHAI PATEL B 25829 132.65
26/3/2009 531249 WELL PACK PA REKHA BACHHAWAT S 28583 133.91
26/3/2009 532144 WELSP GUJ SR WELSPUN WINTEX LTD. B 1700000 80.99
26/3/2009 532144 WELSP GUJ SR KRISHIRAJ TRADING LIMITED B 1450000 77.85
26/3/2009 532144 WELSP GUJ SR WELSPUN INDIA LIMITED S 3100000 79.51
NSE Bulk Deals to Watch - March 26 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
26-MAR-2009,AKRUTI,Akruti City Limited,C D INTEGRATED SERVICES LTD,BUY,426647,1456.28,-
26-MAR-2009,ALPSINDUS,Alps Industries Ltd.,OLIVE VINIMAY PRIVATE LIMITED,BUY,309000,7.00,-
26-MAR-2009,CEATLTD,CEAT Limited,PETROCHEM INTERNATIONAL LTD.,BUY,288500,35.19,-
26-MAR-2009,CYBERMEDIA,Cyber Media (India) Limit,PRADEEP GUPTA,BUY,60000,24.26,-
26-MAR-2009,DCB,Development Credit Bank L,DECENT FINANCIAL SERVICES PVT LTD,BUY,1207011,19.65,-
26-MAR-2009,DCB,Development Credit Bank L,DEVANSHU INFIN LIMITED,BUY,1078000,19.14,-
26-MAR-2009,DCB,Development Credit Bank L,SHANKAR SALES PROMOTION PVT LTD.,BUY,1180858,19.33,-
26-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,90902,2122.33,-
26-MAR-2009,FIEMIND,Fiem Industries Limited,ANIL BABULAL VEDMEHTA,BUY,204789,54.20,-
26-MAR-2009,GLFL,Gujarat Lease Fin Ltd,R P GUPTA,BUY,180000,2.45,-
26-MAR-2009,GMRFER,GMR Ferro Alloys & Indust,PRIME INDIA INVESTMENT FUND LTD,BUY,150000,26.25,-
26-MAR-2009,ORBITCORP,Orbit Corporation Limited,EDELCAP SECURITIES LTD.,BUY,60000,54.55,-
26-MAR-2009,ORBITCORP,Orbit Corporation Limited,SANTOSH KEDIA,BUY,492000,54.65,-
26-MAR-2009,PHOENIXLTD,The Phoenix Mills Limited,KOTAK MAHINDRA UK LTD A/C SANDSTONE CAP INDIA MASTER FUND LT,BUY,1425269,59.00,-
26-MAR-2009,PSL,PSL Limited,KOTAK MAHINDRA UK A/C SANDSTONE CAPITAL INDIA MASTER FUND L,BUY,652000,65.25,-
26-MAR-2009,SAREGAMA,Saregama India Ltd.,ADORN INVESTMENTS LTD,BUY,158025,47.59,-
26-MAR-2009,SAREGAMA,Saregama India Ltd.,ARTECH MERCHANTS PVT. LTD.,BUY,90000,47.55,-
26-MAR-2009,SAREGAMA,Saregama India Ltd.,ASHOK KUMAR BANKA(HUF),BUY,100000,47.64,-
26-MAR-2009,SAREGAMA,Saregama India Ltd.,ASIAN SECURITIES EXCHANGE PVT.LTD.,BUY,90000,47.55,-
26-MAR-2009,SAREGAMA,Saregama India Ltd.,PATREX VYAPAAR PVT LTD.,BUY,90000,47.55,-
26-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PVT LTD,BUY,1518552,17.56,-
26-MAR-2009,SREINTFIN,SREI Infrastructure Finan,ADHYATMA COMMERCIAL PRIVATE LIMITED,BUY,1925000,28.31,-
26-MAR-2009,TIDEWATER,Tide Water Oil Co. (India,YASHODHAM MERCHANTS PVT LTD,BUY,12000,3300.00,-
26-MAR-2009,ZICOM,Zicom Electronic Security,SAJEEVE KOPPARA THOMAS,BUY,90000,73.45,-
26-MAR-2009,AKRUTI,Akruti City Limited,C D INTEGRATED SERVICES LTD,SELL,429047,1459.10,-
26-MAR-2009,ALOKTEXT,Alok Industries Limited,SLONE ROBINSON LLP A/C THE VITTORIA FUND LP,SELL,1295000,12.01,-
26-MAR-2009,ALPSINDUS,Alps Industries Ltd.,INTELL INVOFIN INDIA PVT LTD,SELL,350000,7.02,-
26-MAR-2009,CEATLTD,CEAT Limited,BNK CAPITAL MARKETS LTD.,SELL,258500,35.22,-
26-MAR-2009,CYBERMEDIA,Cyber Media (India) Limit,YUKTI SECURITIES (P) LTD.,SELL,60000,24.26,-
26-MAR-2009,DCB,Development Credit Bank L,DECENT FINANCIAL SERVICES PVT LTD,SELL,637777,19.38,-
26-MAR-2009,DCB,Development Credit Bank L,SHANKAR SALES PROMOTION PVT LTD.,SELL,1180858,19.26,-
26-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,90902,2123.42,-
26-MAR-2009,FIEMIND,Fiem Industries Limited,ANIL BABULAL VEDMEHTA,SELL,204789,54.20,-
26-MAR-2009,GLFL,Gujarat Lease Fin Ltd,INTERNATIONAL SECURITIES LIMITED,SELL,185000,2.45,-
26-MAR-2009,GMRFER,GMR Ferro Alloys & Indust,SHRINE FINANCE & INVESTMENTS PVT LTD,SELL,91480,26.50,-
26-MAR-2009,ORBITCORP,Orbit Corporation Limited,EDELCAP SECURITIES LTD.,SELL,211500,54.60,-
26-MAR-2009,PSL,PSL Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,651879,65.25,-
26-MAR-2009,SAREGAMA,Saregama India Ltd.,BNK CAPITAL MARKETS LTD.,SELL,558025,47.56,-
26-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PVT LTD,SELL,1462577,17.60,-
26-MAR-2009,SREINTFIN,SREI Infrastructure Finan,VITHAL HOUSING LIMITED,SELL,1900000,28.31,-
26-MAR-2009,TIDEWATER,Tide Water Oil Co. (India,MADANLAL LTD,SELL,15000,3300.00,-
Post Session Commentary - March 26 2009
All round buying over the ground lifted the market to report strong gain of more than 3% today as compared to previous close. The BSE Sensex extended its gains for the 4th successive day and breached 10,000 level and NSE Nifty crossed the 3,000 mark. Stocks continued to march ahead in northward direction as further ease in inflation to memorable low, raised expectations of relieve in the monetary policy by the RBI. The inflation dropped to 0.27% during the week ended March 14 2009, as against 0.44% reported last week. Besides, further buying by the foreign investors and firm US index futures also boosted the sentiments.
The Indian market extended its’ yesterday’s rally and opened sharply up tracking positive cues from markets all over the world. The US stock markets closed in green on Wednesday backed by better than expected economic data. The new home sales in US for February increased 4.7% month-over-month to an annualized rate of 337,000 versus a revised 322,000 in the previous month. Further, domestic stocks continued their upward movement as strong buying was emerged across the board. Historic ease in inflation number for the week ended 14th March also added to the positive sentiments. Finally, market touched the uppermost level during final trading but retrenched a little to end slightly below that level. From the sectoral front, mainly Capital Goods, Metal, Power, Bank, Teck, IT, Auto and FMCG stocks helped domestic bourses to gain ground. Mid Cap and Small Cap stocks also remained on buyer’s radar. However, reality stocks were not able to gain favor from the market.
Among the Sensex pack 27 stocks ended in green territory and 3 in red. The market breadth indicating the overall health of the market remained strong as 1392 stocks closed in green while 1138 stocks closed in red and 106 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 335.20 points at 10,003.10 and NSE Nifty ended up by 97.90 points at 3,082.25. BSE Mid Caps and Small Caps closed with gains of 33.05 and 21.88 points at 2,874.22 and 3,187.34 respectively. The BSE Sensex touched intraday high of 10,061.36 and intraday low of 9,739.93.
Gainers from the BSE Sensex pack are Tata Motors (7.94%), L&T Ltd (6.10%), Sterlite Industries (5.97%), TCS Ltd (5.94%), BHEL (5.85%), Tata Power (5.57%), ONGC Ltd (5.36%), Maruti Suzuki (5.07%), Wipro Ltd (5.03%), Tata Steel (5.00%), Bharti Airtel (4.95%), Reliance Infra (4.91%), Hindalco (4.70%) and ITC Ltd (4.23%).
Losers from the BSE Sensex pack are Ranbaxy Lab (2.95%), DLF Ltd (0.31%) and ACC Ltd (0.62%).
The inflation eased further to 0.27% during the week ended March 14 2009, as against 0.44% reported last week. Inflation has dropped sharply as commodity prices dropped after the global economic and financial crisis deepened. The memorable fall in headline inflation has raised expectations of further easing of the monetary policy by RBI to pump in additional liquidity into the market.
On the global markets front the Asian markets which opened before the Indian market, ended higher on better than expected US economic reports. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended higher by 70.15, 486.87, 156.34, 67.11 and 14.78 points at 2,361.70, 14,108.98, 8,636.33, 1,758.79 and 1,243.80 respectively.
European markets which opened after the Indian market are trading mixed. In Frankfurt the DAX index is trading up by 23.51 points at 4,246.80 whereas in London FTSE 100 is trading lower by 3.93 points at 3,896.32.
The BSE Capital Goods index surged (5.42%) or 330.47 points to close at 6,425.38. Main gainers are Havells India (14.80%), Crompton Greaves (14.10%), Kalpat Power T (8.83%), L&T Ltd (6.10%) and BHEL (5.85%).
The BSE Power index also ended higher by (4.02%) or 72.76 points at 1,883.13. Crompton Greaves (14.10%), Lanco Infra (11.59%), BHEL (5.85%), GVK Power Infra (5.84%) and Tata Power (5.57%) ended in positive territory.
The BSE Metal index closed with increase of (3.97%) or 222.62 points at 5,827.32 on strong rise in metal prices in London Metal Exchange. Scrips that gained are Sesa Goa Ltd (10.46%), Ispat Industries (6.44%), Sterlite Industries (5.97%), Hindustan Zinc (5.46%) and Tata Steel 5.00%).
The BSE Bank stocks advanced by (3.38%) or 153.78 points to close at 4,706.22 as RBI issued fresh norms for the adjustment of provisions for restructured accounts, standard assets, and non-performing assets (NPAs), to support the financial health of banks. Major gainers are Indus Ind Bank (7.73%), Yes Bank (7.62%), Bank of India (7.38%), Indian Overseas Bank (6.01%) and Axis Bank (5.97%).
The BSE IT index gained (3.29%) or 75.17 points to close at 2,361.21 on hopes of a revival in the US economy that will spur domestic market. Gainers are Mphasis Ltd (6.92%), TCS Ltd (5.94%), Wipro Ltd (5.03%), Infosys Tech (3.06%) and Rolta India (2.78%).
The BSE Reality ended down (4.54%) or 75.73 points at 1,614.94. Losers are Akruti City (55.06%), Indiabull Real (3.78%), Orbit Co (3.17%), Penland Ltd (0.94%) and DLF Ltd (0.31%).
Maruti Suzuki gained 5.07%. The auto company is insistently working to launch new cars and improvising the existing ones. The auto company’s move is seen as a counter attack to Tata Motors’ newly launched Tata Nano. Maruti is expected to launch Maruti Splash or Ritz in the second week of May.
GAIL India increased by 0.45%. The company will spin off its marketing business into a separate firm from April 1. GAIL India will remain a gas transmission company and will construct cross-country pipelines to transport gas, while GAIL Gas (GGL) will carry out marketing business. However, all allied businesses such as petrochemicals and telecom will remain under GAIL India.
Tata Consultancy Services (TCS) went up by 5.94%. The company has adopted several measures to cut down costs like avoiding travel and moving people from onsite to offshore.
Indian Overseas Bank gained 0.85% as the biggest domestic institutional investors Life Insurance Corporation of India hiked its stake in the state-run bank.
Unitech Ltd zoomed 7.82% to Rs. 34.05 n report that Morgan Stanley Mauritius purchased shares in the realty firm on Wednesday, March 25, 2009.
Nucleus Software Exports surged 3.24% on bagging a new order for one of its software products.
Akruti City lost (55.06%) on the last day of F&O expiry as stocks of the company are now out of F&O. On 19th March 2009, SEBI had had excluded Akruti City from futures and options (F&O) segment through its circular.
Sensex vaults 22.5% in 11 trading sessions
Fall in headline inflation to a record low and short covering in the derivatives segment ahead of the expiry of the near-month March 2009 contracts lifted the barometer index BSE Sensex above the psychological 10,000 mark in mid-afternoon trade. The Sensex had last had hit the 10,000 mark on 7 January 2009, the day Satyam Computer unveiled India's biggest corporate fraud and triggered a market slide. The S&P CNX Nifty breached the psychological 3,000 mark.
A slide in inflation to near zero reinforced expectations of a further easing of the monetary policy by the Reserve Bank of India (RBI). Stepping up of buying by foreign funds, overnight gains in US stocks, higher Asian markets and higher US index futures also bolstered sentiment.
However, the market came off the higher level in late trade soon after a steep surge took the Sensex past 10,000 mark in mid-afternoon trade. market slide. The BSE 30-share jumped 335.20 points, or 3.47%, off close to 60 points from the day's high.
Auto, capital goods, banking, IT and metal stocks surged. But index heavyweight Reliance Industries (RIL) came off the day's high in late trade.
Reserve Bank of India Governor D Subbarao today said the slowdown in India's economic expansion has been steeper than previously estimated and the challenge will be to arrest the moderation in growth. He said a painful adjustment was inevitable until the economy recovered and stimulus measures were the right step in the current extraordinary situation.
The RBI governor said there is a cost to further fiscal stimulus and more borrowings will put pressure on credit markets. The RBI governor said 2009/10 will be a challenging year unless business confidence and investment revived, and said earlier cuts in policy rates needed to flow through to the economy. "We set the policy rates but policy rates have to transmit through the banks," Subbarao said.
Inflation based on the wholesale prices rose 0.27% in the 12 months to 14 March 2009, a record low and below the previous week's annual rise of 0.44%, data released by the government in mid-morning trade showed. The 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.
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.
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, there are sings that the credit flow to businesses is improving. During the fortnight ended 13 March 2009, loans sanctioned by scheduled commercial banks (SCBs), including regional rural banks, went up by Rs 22423 crore. This was the third fortnight in a row when credit flow went up. Earlier, an extreme risk aversion by banks had chocked credit flow to the industry - the lifeline of business.
European shares moved in and out of positive zone after a five-day rally as investors remained worried about the health of the financial sector even as recent US data raised hope for a recovery. Key benchmark indices in UK and Germany were up by between 0.01% to 0.49%. But France's CAC 40 fell 0.08%.
Asian stocks rose today, 26 March 2009 lifting the region's benchmark index to a two-month high, as better-than- expected US economic reports fueled optimism that global growth is responding to government stimulus measures. Key benchmark indices in Hong Kong, Japan, Singapore, South Korea and Taiwan were up by between 0.75% and 3.78%.
Trading in US index futures indicated the Dow could rise 50 points at the opening bell on Thursday, 26 March 2009. US stocks advanced in a volatile session on Wednesday, 25 March 2009 as unexpected growth in durable-goods orders and new-home sales stimulated confidence the economy is improving. The Dow Jones industrial average rose 89.84 points, or 1.17%, to 7,749.81. The Standard & Poor`s 500 index rose 7.63 points, or 0.95%, to 813.88, while the Nasdaq Composite index rose 12.43 points, or 0.82%, to 1,528.95.
The US February 2009 new home sales increased by 4.7% to 337,000 compared with January 2009, as against an expected decline of 2.9%. Commerce Department's report showed durable goods orders rose 3.4% in February 2009 over the previous month to $165.6 billion, as against an estimated 2.5% fall.
Closer home, 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.
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 have stepped up buying of Indian stocks which follows easing of FII selling vigour in the past few days. FIIs bought shares worth a net Rs 2,494.70 crore in nine trading sessions from 13 March 2009 to 25 March 2009. According to provisional data on NSE, foreign institutional investors (FIIs) were net buyers worth Rs 348.65 crore while mutual funds bought shares worth Rs 8.92 crore on Wednesday, 25 March 2009.
Foreign funds can take solace in the recent sharp rebound in the rupee against the dollar. However, the currency has been volatile. 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.
The Indian currency rose in early trade on Thursday 26 March 2009 helped by gains in other Asian currencies but month-end demand for the US unit from refiners and importers could limit gains. The partially convertible rupee was at 50.72 per dollar, higher than its Wednesday's close of 50.74/75.
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.
Meanwhile, the National Advisory Committee on Accounting Standards (Nacas), has reportedly favoured suspending for two years a key rule that requires firms to mark-to-market (MTM) foreign exchange assets and liabilities, a decision which is favourable for corporate India.
Accounting Standard-11 mandates MTM provisioning in the P&L a/cs for forex-related gains and losses. It requires that forex assets & liabilities be recorded at a fair value on the date of preparation of the balance sheet. The demand to suspend this rule, known in accounting circles as AS-11, was made by the Confederation of Indian Industry (CII) on grounds that it could severely distort the earnings of many companies. It was contended that this accounting standard, designed to address normal conditions, should be suspended for the time being, as the present market conditions were not normal.
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.
As per reports, BJP's manifesto is likely to be even more populist than that of the Congress party. The BJP looks set to sell rice to families below the poverty line at the hugely subsidised price of Rs 2 a kilo. Congress has already promised to sell 25 kilos of wheat or rice per month at Rs 3 a kilo.
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.
A latest jolt to the Congress party came from a decision of the regional party in Tamil Nadu viz. the PMK on Thursday, 26 March 2009, to join hands with the All India Anna Dravida Munnetra Kazhagam (AIADMK). PMK is a part of the ruling Congress-led United Progressive Alliance at the centre. The PMK's decision to join AIADMK could give impetus to the Third Front if the PMK and AIADMK join it.
The BSE 30-share Sensex advanced 335.20 points, or 3.47%, to 10,003.10, its highest closing since 6 January 2009. At the day's high of 10,061.36, the Sensex rose 393.46 points in late trade. At the day's low of 9,739.93, the Sensex rose 72.03 points in early trade.
The BSE Sensex has risen 1,842.70 points or 22.58% in eleven trading sessions from a three-year closing low of 8,160.40 on 9 March 2009
The S&P CNX Nifty was up 97.90 points or 3.28% to 3,082.25.
The market breadth, indicating the overall health of the market, was strong on BSE with 1,394 shares advancing as compared with 1,163 that declined. A total of 56 shares remained unchanged.
The BSE clocked a turnover of Rs 4,607 crore, higher than Rs 4,097.44 crore on Wednesday, 25 March 2009.
Nifty April 2009 futures were at 3075.50, at a discount of 6.75 points as compared to the spot closing of 3082.25. Turnover in NSE's futures & options (F&O) segment increased to Rs 76,957.01 crore from Rs 74,456.63 crore on Wednesday, 25 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 Capital Goods index (up 5.42%), the BSE Power index (up 4.02%), the BSE Metal index (up 3.97%) outperformed the Sensex.
The BSE Realty index (down 4.54%), the BSE Healthcare index (up 1.21%), the BSE Consumer Durables index (up 2.26%), the BSE Oil & Gas index (up 2.42%), the BSE FMCG index (up 2.67%), the BSE PSU index (up 2.74%), the BSE Auto index (up 3.03%), the BSE TECk index (up 3.25%), the BSE IT index (up 3.29%), the BSE Bankex (up 3.38%) underperfomed the Sensex.
From the 30 share from the Sensex pack 27 stocks gained while rest fell. Reliance Infrastructure, ONGC, Tata Power Company, Bharti Airtel rose by between 4.91% to 5.57%.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 2.16% to Rs 1,566.55. 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.
Shares of oil marketing companies rose for the third 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 2.6% and 2.31% respectively.
But Indian Oil Corporation fell 0.85% after company said on Wednesday, 25 March 2009 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.
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.
Rate sensitive real estate shares fell on recent reports falling interest rates have failed to revive housing demand. DLF, Indiabulls Real Estate, Akruti City fell by between 0.31% to 55.06%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
Some healthcare stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Matrix Laboratories, Lupin, Dr Reddy's Laboratories, Lupin Pfizer, Cipla rose by between 0.22% to 4.29%.
Outsourcing focussed IT stocks rose on hopes of a revival in the US economy, the biggest market for IT firms. India's largest software services exporter by sales TCS jumped 5.94%. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.
India's second largest software services exporter Infosys Technologies rose 3.06%. Its ADR rose 2.25% on Wednesday. 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.
India's third largest software services exporter, Wipro rose 5.03%. Its ADR gained 0.54% on Wednesday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).
The Indian rupee surged on Thursday helped by gains in other Asian currencies but month-end demand for the US unit from refiners and importers could limit gains. A stronger rupee affects operating profit of IT firms negatively as they earn most of their revenues from exports.
Metal stocks gained on a recent solid surge in metal prices on the London Metal Exchange and on imposition of a safeguard duty by the Indian government recently on import of some aluminium products. Steel Authority of India, National Aluminum Company, Tata Steel, Hindustan Zinc and Hindalco Industries rose by between 1.06% to 5.46%.
Rate sensitive auto shares gained on hopes lower interest rates and fall in fuel prices would spur demand for vehicles which is mainly driven by finance. India's largest commercial vehicle maker by sales Tata Motors rose 7.94%. The world's cheapest car Tata Nano was unveiled in Mumbai by Tata Group Chairman Ratan Tata on Monday 23 March 2009. Bookings for the Nano are expected to soothe the company's funding woes.
India's largest car maker by sales Maruti Suzuki India rose 5.07% on recent report 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 motorbike maker by sales Hero Honda Motors rose 1.79%. India's largest tractor maker by sales Mahindra & Mahindra rose 1.58%.
Banking stocks gained after Reserve Bank of India (RBI) on Wednesday 25 March 2009 issued fresh norms for the treatment of provisions for restructured accounts, standard assets, and non-performing assets (NPAs), a move that will help improve the financial health of banks. India's largest bank in terms of assets and branch network State Bank of India rose 4.17%. 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 2.31% to Rs 374.20. But the stock was off the day's high of Rs 376.70. Its American depository receipts (ADR) remained flat on Wednesday 25 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 1.37%. Its ADR rose 4.65% on Wednesday. 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 3.51%, extending gain for the second straight day after it announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective Wednesday 25 March 2009.
The new RBI norms are expected to improve capital adequacy and bring down the level of net NPAs. Under the revised norms, the banks can use the provisions made for decline in the fair value of restructured advances (standard assets and NPAs) for netting from relative assets.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 6.1%. 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, Crompton Greaves, Punj Lloyd, Praj Industries, ABB, rose by between 0.49% to 14.1%.
Some FMCG stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Nestle India, Britannia Industries, Marico, Tata Tea, ITC, United Breweries rose by between 0.52% to 4.23%. India's largest FMCG firm by sales Hindustan Unilever rose 1.85%. The company's advance tax payment rose 30% to Rs 130 crore in Q4 March 2009 over Q4 March 2008.
Unitech clocked the highest volume of 3.7 crore shares on BSE. Motherson Sumi (3.42 crore shares), Cals Refineries (1.74 crore shares), GVK Power Infrastructure (1.09 crore shares) and IFCI (95.77 lakh shares) were the other volume toppers I that order.
Akruti City clocked the highest turnover of Rs 545.49 crore on BSE. Reliance Industries (Rs 370.53 crore), Motherson Sumi (Rs 206.66 crore), ICICI Bank (Rs 163.49 crore) and Reliance Infrastructure (Rs 135.79 crore) were the other turnover toppers in that order
Asian stocks open in green
Asian stocks rose, on better than expected US economic reports.
Sony Corp gained more than 6.5% in Tokyo after US durable-goods orders rose the most in more than a year.
Japanese benchmark index Nikkei advanced 8.55 points, or 0.10%, to trade at 8,488.54.
Hong Kong`s Hang Seng index gained 199.17 points, or 1.46%, to trade at 13,821.28.
China`s Shanghai Composite rose 35.12 points, or 1.53%, to trade at 2,326.68.
Taiwan`s Taiex index climbed 55.56 points, or 1.04%, to trade at 5,401.94.
South Korea`s Kospi index increased 6.80 points, or 0.55%, to trade at 1,235.82.
Singapore`s Straits Times went up 37.24 points, or 2.20%, to trade at 1,728.92. (7.52 a.m., IST).
Pre Session Commentary - March 26 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened positive on the back of positive cues from US markets. Domestic markets are likely to surge as investors would close their positions due to F&O expiry today. There could be some volatility creeping in during the mid session of the trade and most likely the investors would keep a hawk’s eye on the trading of other Asian markets and also the opening of European markets. The better than expected economic data of US economy has exuded positive cues for Asian markets and most probably the European markets would also follow a positive opening.
On Wednesday, the domestic markets opened with a shy and later turned highly volatile, however towards the end it managed to close with heavy gains. The session started with a lot of volatility with little a fury tussle between bulls and bears. Asian markets were trading mixed but the positive trend of the European markets helped the domestic investors gain momentum. Towards the end the markets gained momentum as the F&O expiry is due on Thursday. Sectors like Realty, Oil & Gas, Metal and Bankex closed with phenomenal gains of 6.32%, 3.66%, 3.31% and 3% respectively. However sectors like PSU, HC and FMCG were the lackluster. During the session we expect the markets to be trading volatile with positive bias.
The BSE Sensex closed with gain of 198.86 points at 9,667.90 and NSE Nifty ended with a gain of 45.65 points at 2,984.35. BSE Mid Caps and BSE Small Caps ended with gains of 21.09 points 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.
On Wednesday, the US Markets gained on the back of good economic data. February durable goods orders increased 3.4%, marking the first time in six months that orders increased. Excluding transportation, orders increased 3.9%. Economists expected respective declines of 2.5% and 2.0%. February new home sales also increased 4.7% month-over-month to an annualized rate of 337,000. Economists predicted a 2.9% decline. In the financial sector Bank of America was a top performer after a report indicated the company plans to soon repay federal aid. US light crude oil for May delivery fell by 1.9% to settle at $52.98 a barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed high by 89.84 points at 7,749.81, the NASDAQ Composite (RIXF) index inclined by 12.43 points to close at 1,528.95 and the S&P 500 (SPX) grew by 7.76 points to close at 813.88.
Today major stock markets in Asia are trading positive. Hang Seng is trading up by 297.62 points at 13,919.73 followed by Japan''s Nikkei by 62.12 points at 8,542.11, Strait Times is also up by 38.35 points at 1,730.03. While Taiwan Weighted and Seoul Composite are trading with gains of 26.29 points and 3.74 points at 5,372.67 and 1,232.76 respectively.
Indian ADRs ended up. In technology sector, Patni Computers ended higher by 4.22% along with Infosys that ended up by 2.25%. Further, Satyam gained 2.53% and Wipro closed up by 0.54%. In banking sector ICICI Bank remained unchanged and HDFC Bank gained 4.65%. In telecommunication sector, Tata Communication and MTNL advanced by 2.54% and 0.39% respectively. Further, Sterlite Industries increased by 6.66%.
The FIIs on Wednesday stood as net buyer in equity and net seller in debt. Gross equity purchased stood at Rs 1,288.40 Crore and gross debt purchased stood at Rs 262.50 Crore, while the gross equity sold stood at Rs 1,589.20 Crore and gross debt sold stood at Rs. 1,226.90 Crore. Therefore, the net investment of equity and debt reported were Rs 699.20 Crore and Rs (964.40) Crore respectively.
On Wednesday, the Indian rupee closed at 50.74/75, flat as compared to previous close 50.73/74. Rupee rebound on the day’s trade due to late gains in the domestic share markets.
On BSE, total number of shares traded were 34.69 Crore and total turnover stood at Rs 4,097.44 Crore. On NSE, total number of shares traded was 78.70 Crore and total turnover was Rs 12,356.08 Crore.
Top traded volumes on NSE Nifty – Unitech with 125145706, Suzlon Energy with 29252768 shares, ICICI Bank with 21115940 shares, SAIL with 19334210 shares followed by DLF with 19121410 shares.
On NSE Future and Options, total number of contracts traded in index futures was 1430862 with a total turnover of Rs 20,547.26 Crore. Along with this total number of contracts traded in stock futures were 749952 with a total turnover of Rs 22,896.90 Crore. Total numbers of contracts for index options were 1949,865 with a total turnover of Rs 28,913.19 Crore and total numbers of contracts for stock options were 60603 and notional turnover was Rs 2,099.29 Crore.
Today, Nifty would have a support at 2,932 and resistance at 3,025 and BSE Sensex has support at 9,546 and resistance at 9,772.
Market may start buoyant
The benchmark indices, Sensex and Nifty, are expected to commence on a firm note and witness significant rally during intra-day trades, as international markets backed by firm US and Asian indices may help the sentiment remain buoyant. Among the Asian majors, Nikkei Index has surged 0.51% while Hang Sang & Strait Times Index has scaled up nearly 2% each. On the technical front, the Nifty could test in the 3030-3080 range on the upside and has supports in the 2930-2880 range, while the Sensex has a likely support at 9550 and may face resistance at 9850.
US indices posted significant gains on Wednesday, mustering up a late-session rally after a choppy session that helped push the S&P 500's two-week gains to 20%. As a result, the Dow Jones flared up by 90 points at 7,750, while the Nasdaq added 12 points to close at 1529.
All of the Indian ADRs traded firm on the US bourses. Rediff led the pack with gains of 12.65% while Patni Computers, Infosys, Satyam, Dr Reddy, HDFC Bank and VSNL gained around 2-4% each. However, Wipro and MTNL ended with marginal gains. While Tata Motors closed with loss of 6.13%.
Crude oil prices in the US market lost, with the Nymex light crude oil for May delivery declining by $1.21 to close at $52.77 per barrel . In the commodity segment, the Comex gold for June series gained $12 to settle at $938 a troy ounce.
March 2009 derivatives to keep market volatile; Inflation data eyed
Key benchmark indices are likely to extend recent upmove on the back of positive global cues. The SGX Nifty futures for March 2009 series rose 12.50 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. Inflation data in the year through 14 March 2009 to be released by noon today, 26 March 2009 will be closely watched.
As per reports, rollover of Nifty positions from March 2009 series to April 2009 was 65% while marketwide rollover stood at 63%, as on Wednesday, 25 March 2009.
Inflation data in the year through 14 March 2009 to be released by noon today, 26 March 2009 will be closely watched. 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%. Hopes of interest rate cut by the Reserve Bank of India (RBI) loom large to revive demand and fuel growth in a sagging economy.
Asian stocks rose today, 26 March 2009 lifting the region's benchmark index to a two-month high, as better-than- expected US economic reports fueled optimism that global growth is responding to government stimulus measures. Key benchmark indices in Hong Kong, China, Japan, Singapore, South Korea and Taiwan were up by between 0.16% and 2.34%.
US stocks advanced in a volatile session on Wednesday, 25 March 2009 as unexpected growth in durable-goods orders and new-home sales stimulated confidence the economy is improving. The Dow Jones industrial average rose 89.84 points, or 1.17%, to 7,749.81. The Standard & Poor`s 500 index rose 7.63 points, or 0.95%, to 813.88, while the Nasdaq Composite index rose 12.43 points, or 0.82%, to 1,528.95.
The US February 2009 new home sales increased by 4.7% to 337,000 compared with January 2009, as against an expected decline of 2.9%. Commerce Department's report showed durable goods orders rose 3.4% in February 2009 over the previous month to $165.6 billion, as against an estimated 2.5% fall.
Back home, key benchmark indices extended recent strong gains on Wednesday, 24 March 2009 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.
The BSE 30-share Sensex jumped 196.85 points, or 2.08%, to 9,667.90, its highest closing since 6 January 2009. The S&P CNX Nifty jumped 45.65 points or 1.55% to 2,984.35.
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%.
According to provisional data on NSE, foreign institutional investors (FIIs) were net buyers worth Rs 348.65 crore while mutual funds bought shares worth Rs 8.92 crore on Wednesday, 25 March 2009.
Daily News Roundup - March 26 2009
The Fertiliser firms have sought the Petroleum and Natural Gas Regulatory Board’s intervention to resolve issues between the fertiliser companies and GAIL India over the supply of gas from RIL’s KG basin. (BS)
Satyam Board has short listed eight bidders including LT, Tech Mahindra and IBM Global. (ET)
Tata Communication sold 1% stake in Tata Teleservices (Unlisted) for Rs4.2bn. (ET)
Gail India will spin off its marketing business Gail Gas into a separate firm from April 1 '09, plan to list the Gail Gas on bourses. (ET)
Ranbaxy Lab has received nod to sell anti-psychotic drug by Australian drug regulators. (ET)
Novartis offers to buy 39% more in Indian subsidiary. (BS)
SBI asks associate banks to pay royalty for logo use. (BL)
Sobha Developers has received the nod from three mutual funds to roll over debt of around Rs3.5bn. (BS)
ONGC plans to set up a crude desalter plant in Mehsana, similar to its existing facility in Nawagam at an estimated cost of Rs1.5-2bn. (BS)
Tata Power exits a part of its holding in Tata Teleservices for Rs3.2bn. (ET)
Coal India Limited expects the exploration of coal block for its proposed coal gasification project in joint venture with ONGC to be done within 18 months. (BS)
Essar Oil is set to acquire 50% stake in 4mtpa Kenya Petroleum Refinery. (ET)
The PE arm of Aditya Birla Group plans to raise about $2bn in PE capital within the next five years. (BS)
Spice Group may opt out of Satyam bid. (BL)
SEBI has allowed the promoter group of Godrej Industries a passive increase in voting rights through a company’s buyback plan. (BL)
BRPL merged with its parent IndianOil with effect from Wednesday. (BL)
S&P rating services lowered its corporate credit rating of Tata Motors to 'B+' from 'BB-'. (ET)
Havells India has bagged US$200mn export order from the west European countries to supply motors and CFL. (ET)
Omaxe Ltd has bagged a contract to develop a convention centre, a library and a computer centre at the Deenbandhu Chhotu Ram University of Science and Technology at Sonepat.(FE)
RBI issued fresh norms for the treatment of provisions for restructured accounts, standard assets and NPAs. (BS)
For the first time in nearly three months deposit base shrunk, whereas credit flow improved during the fortnight ended March 13. (BS)
The National Advisory Committee on Accounting Standard has postponed the implementation of Accounting Standard 11 (AS 11) to 2011. (BS)
Cement prices have gone up by about Rs10 a 50-kg bag in March owing to an increase in demand and transportation constraints despite a duty cut. (BL)
Ground Zero for inflation!
While we stop to think, we often miss our opportunity.
The bulls may look forward to inflating their gains for now as the market is set to continue its recent ascent. We expect another positive start and a firm close, unless global cues give way. Some short-covering is likely on account of F&O expiry. Traded volumes too have picked up this week, which is a healthy sign. Still, one has to stay rooted to the ground, as the market could face a few bumps in the coming month.
There are some signs of recovery in economic activity. Inflation is all set to move into sub-zero territory, though partly it is a statistical magic. Consumer inflation is still pretty high at around 7-8%. For a day you can stop thinking and ride the upmove with stop losses to protect your downside.
A few good economic reports in the US have added fizz to the recent rally across global markets. Wall Street and world markets have also welcomed the latest bank bailout plan by the Obama regime. Add to that encouraging commentary from top global banks, and you have a pretty good platform for the bulls to exploit. But be careful as the bottoming process is going to take time.
FIIs were net buyers in the cash segment on Wednesday at Rs3.48bn while the local institutions poured Rs89.2mn. In the F&O segment, the foreign funds were net buyers at Rs3.41bn. On Tuesday, FIIs were net buyers of Rs6.99bn. Mutual Funds were net buyers of Rs1.25bn on the same day.
US stocks ended higher on Wednesday after a fairly volatile session, spurred by positive reports on new home sales and durable goods orders. The advance sputtered out through most of the afternoon. A late-session jump in financial stocks and technology shares helped markets finish higher.
The Dow Jones Industrial Average rose 90 points, or 1.2%, to 7,749.81. The S&P 500 index rose 7 points, or 0.9%, to 813.88. The Nasdaq Composite index advanced 12 points, or 0.8%, to 1,528.95.
US stocks have rebounded 20% since March 9, when the Dow and S&P 500 hit roughly 12-year lows. They have been rallying on optimism that the economy and financial markets are getting closer to stabilising. In addition, many stocks have been hammered out of shape and look attractive.
Bank of America, JPMorgan Chase and Wells Fargo ended higher after a shaky afternoon. Citigroup cut some losses. The KBW Bank sector index rose 5%, erasing a drop of over 5%.
February new home sales rose at an annual unit rate of 337,000 versus a revised 322,000 in the previous month. Sales were expected to rise at a 300,000 unit annual rate, according to a consensus of forecasts.
An earlier report showed that durable goods orders rose 3.4% in February after falling 5.2% in the previous month. Economists had forecast a fall of 2.5%. Durable goods orders, excluding transportation, rose 3.9% after falling 5.9% in January. Economists had predicted a decline of 2%.
Also, a report from the UCLA Anderson School of Management showed that real domestic product growth is on track to see quarterly growth in 2010 and 2011, although not in 2009.
On Tuesday, Federal Reserve Chairman Ben Bernanke and Secretary Geithner testified about the government's $180bn bailout of AIG. They said that AIG demonstrates the need for the government to have broader power over non-bank financial institutions.
Geithner again made his case for broader powers to regulate flailing companies on Wednesday. In a speech in New York, the Treasury Secretary said that the country should never again have to provide a massive bailout or risk seeing a collapse of the financial system.
President Barack Obama, in a primetime news conference on Tuesday, said that it is because of a lack of authority that the AIG situation has gotten worse. Obama also defended his $3.6 trillion 2010 federal budget, which he said is inseparable from the overall strategy for economic recovery.
Congressional committees began debating the budget on Wednesday, with a final budget not expected until at least next fall. On Monday, the Treasury Department introduced its plan to purge bank balance sheets of up to $1 trillion in bad assets that are limiting lending and prolonging the recession.
Last week, the Federal Reserve announced it was pumping another trillion into the economy to try to get credit flowing, including $300 billion to buy long-term Treasurys. The N.Y. Fed Bank began buying the securities on Wednesday.
Treasury prices tumbled, raising the yield on the benchmark 10-year note to 2.79% from 2.70% on Tuesday.
Lending rates were unchanged. The 3-month Libor rate held steady at 1.23%, where it stood Monday, while the overnight Libor rate held steady at 0.29%. Libor is a bank-to-bank lending rate.
In currency trading, the dollar fell against the euro and the yen, recovering from bigger morning losses that followed comments from Geithner.
Crude futures dropped from their highest level in nearly four months as data showed US crude inventories rose more than expected as petroleum demand fell. US light crude oil for May delivery fell $1.21 to settle at $52.77 a barrel. Over the last three months, oil futures have surged 49%.
COMEX gold for May delivery rose $12 to settle at $936.70 an ounce.
On Thursday, the House Financial Services Committee holds a hearing on regulatory reform, with Treasury Secretary Tim Geithner due to testify. Economic reports include readings on weekly jobless claims and gross domestic product growth.
The number of Americans filing new claims for unemployment is expected to have risen to 650,000 from 646,000 the previous week, economists estimate. Continuing claims, a measure of people who have been receiving unemployment for a week or more, will also be in focus. Last week, continuing claims hit an all-time high of 5.473 million.
Fourth-quarter GDP in the US is expected to have shrunk by a 6.6% annual rate versus the previous reading of a 6.2% rate. The 6.2% rate was a 26-year low. Best Buy and homebuilder Lennar report quarterly results before the start of trading.
European stocks edged higher on Wednesday, as gains in the oil and food sectors helped offset losses in Siemens and a dip in a key sentiment gauge in Germany. Major stock indexes spent much of the day meandering between positive and negative territory.
The pan-European Dow Jones Stoxx 600 index rose 0.3% to 178.82, while the French CAC 40 index rose 0.7% to 2,893.45 and the German DAX 30 index gained 0.9% to 4,223.29. The UK's FTSE 100 index, however, lost 0.3% to 3,900.25.
A highly volatile session ended with smart gains ahead of the F&O expiry on Thursday. The BSE benchmark Sensex swung almost 280 points and the NSE Nifty index gyrated 70 points from their highs and lows. The interest rate sensitive stocks led from the front followed by the oil & gas, metals and capital goods stocks. Finally, the BSE Sensex surged 196 points to close at 9,667 and the NSE Nifty was up 45 points at 2,984.
Among the 30-components of Sensex, 22 stocks ended in positive terrain and 8 stocks ended in the red. JP Associates, Sterlite, DLF, Reliance Infra, Tata Power and Reliance Industries were among the top gainers.
On the other hand, NTPC, Bharti, ONGC, HUL and Tata Motors were among the major losers.
Shares of Idea gained by 3% to Rs48.7 after reports stated that the company has forayed into global long distance business. The scrip touched an intra-day high of Rs49 and a low of Rs46.7 and recorded volumes of over 0.7mn shares on BSE.
Shares of Bombay Rayon surged by over 5% to Rs146 after reports stated that the board of directors approved raising of Rs3.3bn through a preferential allotment of 18mn shares at Rs185 each. The scrip touched an intra-day high of Rs147.7 and a low of Rs136.8 and has recorded volumes of over 1.1mn shares on NSE.
Shares of Crompton Greaves dropped sharply for a second day in a row after reports stated that JP Morgan Chase & Co said the company’s proposed acquisition of 41% stake in Avantha Power appeared to be expensive.
The stock declined by over 13% to Rs106 after hitting an intra-day high of Rs119 and a low of Rs99.7 and recorded volumes of over 10.2mn shares on BSE.
Shares of DLF gained by 6% to Rs176 after reports stated that the company plans to book ~Rs20bn revenue from sale of 4.5mn sq ft of commercial space to the group company, DAL. The scrip touched an intra-day high of Rs178 and a low of Rs164 and recorded volumes of over 6.6mn shares on BSE.
Shares of Gail India advanced by over 3.5% to Rs234 after the company announced that it signed an agreement with Ministry of Petroleum. The company has announced that it has set a target to transport 94.8mn cubic meters per day of gas in the year starting April.
It was a surprise rally on Wednesday, however, the NSE Nifty index faces crucial hurdle i.e. the 3000 levels which it has failed to sustain above convincingly. Adding to the woes would be high volatility on account of F&O expiry. The global markets would also be closely watched for cues in the early trades. So one can expect a day of wild gyrations.
Nifty March 2009 futures at premium
Turnover declines
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 near-month March 2009 derivatives contract will expire tomorrow, 26 March 2009.
Reliance Industries March 2009 futures were at premium at 1540.85 compared to the spot closing of 1532.20.
State Bank of India March 2009 futures were at premium at 1055.30 compared to the spot closing of 1049.95.
DLF March 2009 futures were at premium at 177.60 compared to the spot closing of 176.65.
In the cash market, the S&P CNX Nifty gained 45.65 points or 1.55% at 2984.35.
Bullion metals go up
Gold and silver shine as the dollar dips
Bullion metal prices ended higher on Wednesday, 25 March, 2009. The weak dollar was responsible for precious metals ending higher 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 Wednesday, Comex Gold for April delivery rose $12 (1.3%) to close at $935.8 an ounce on the New York Mercantile Exchange. It fell to an intra day low of $916. 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 13.4%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (7.9%) since then.
On Wednesday, Comex silver futures for May delivery rose 8 cents (0.3%) to end at $13.437 an ounce. In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 22.9% this year. For 2008, silver had lost 24%.
In the currency market today, the dollar weakened against its rivals. The dollar index, which measures the strength of the dollar against a basket of six currencies fell 0.6%. But then, the dollar pared almost all its losses after Treasury Secretary Timothy Geithner clarified his earlier comments, emphasizing that the dollar remains the world's reserve currency.
Earlier this week, 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 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.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.
Prior to 2008, gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for April delivery closed higher by Rs 153 (1.01%) at Rs 15,226 per 10 grams. Prices rose to a high of Rs 15,382 per 10 grams and fell to a low of Rs 14,961 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 86 (0.4%) higher at Rs 22,351/Kg. Prices opened at Rs 22,305/kg and rose to a high of Rs 22,545/Kg during the day's trading.
Crude slides down
Oil prices drop as crude inventories rise more than expected
Crude prices ended lower on Wednesday, 25 March, 2009 as the weekly inventory report by the energy department showed that crude inventories rose more than expected last week. It was due to the drop in demand for petroleum products. Crude prices fell today despite the weak dollar.
On Wednesday, crude-oil futures for light sweet crude for May delivery closed at $52.77/barrel (lower by $1.21 or 2.2%) on the New York Mercantile Exchange. 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 64.6% since then. Year to date, in 2009, crude prices are higher by 18.3%. On a yearly basis, crude prices are lower by 50%.
The EIA reported today that crude inventories rose 3.3 million barrels last week (for the week ended 20 March, 2009), more than the 1.4 million barrels expected. At 356.6 million barrels, stocks are at the highest level since July 1993. U.S. refineries operated at 82% of their operable capacity last week, down slightly from a week ago.
EIA also reported that total petroleum products supplied over the past four weeks averaged 19.1 million barrels a day, down 3.2% from a year ago. Gasoline inventories fell by 1.1 million barrels in the week while distillate stockpiles, which include diesel and heating oil, declined by 1.6 million barrels.
In the currency market today, the dollar weakened against its rivals. The dollar index, which measures the strength of the dollar against a basket of six currencies fell 0.6%. But then, the dollar pared almost all its losses after Treasury Secretary Timothy Geithner clarified his earlier comments, emphasizing that the dollar remains the world's reserve currency.
Also at the Nymex on Wednesday, April-reformulated gasoline fell 0.5% to $1.495 a gallon and April heating oil dropped 2.3% to $1.4647 a gallon.
April natural-gas futures fell 0.4% to $4.329 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 2,685/barrel, lower by Rs 6 (0.22%) against previous day's close. Natural gas for April delivery closed at Rs 223.5/mmbtu, lower by Rs 1/mmbtu (0.44%).
Yes Bank
We recommend a buy on Yes Bank from a short-term trading perspective. It is apparent from the charts of Yes Bank that after meeting resistance around Rs 90 in early January, it fell by nearly 55 per cent and found support around Rs 41 in early March. The early March low is also a 52-week low for this stock. However, the stock changed trend and breached the medium-term down trendline recently. On March 24, the stock jumped 5 per cent, penetrating 21-day moving average. We observe that there is an increase in volume over the past three trading sessions. The daily relative strength index is rising in the neutral region and the weekly RSI is recovering from the oversold levels. The daily moving average convergence and divergence indicator is signalling a buy. We are bullish on the stock from a short-term horizon. We anticipate the stock’s short-term uptrend to prolong until it hits our price target of Rs 56 in the approaching sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 47
via BL
Subscribe to:
Posts (Atom)