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Tuesday, March 31, 2009
Sensex ends firm; J P Asso. soars 7.26%
The sensitive 30-share index, Sensex ended on a firm note as sustained buying interest was seen across board. Capital goods, healthcare, realty and auto stocks were on the upmove. It opened with a gain of 65.07 points, at 9,633.21 on Tuesday. After few minutes of trading into the positive, the index fell into the negative to bounce back into the positive. The Sensex proceeded to trade further on sustained buying, touching a day`s high of 9,826.22. Meanwhile, opening of European markets also supported the sentiment.
Secondline stocks also performed well. BSE Midcap and Smallcap index rose 2.27% and 1.46% respectively.
Amongst sectoral indices, BSE Capital goods surged over 3%, Healthcare, Realty, auto and Metal rose over 2% each.
European stocks gained as Marks & Spencer Group posted sales that beat analysts` estimates and commodity producers climbed. FTSE 100 gained 199.23 points, or 3.17%, to trade at 3,882.14, CAC 40 advanced 48.89 points, or 1.80%, to trade at 2,768.23 and DAX climbed 58.65 points, or 1.47%, to trade at 4,047.88 (4.28 p.m., IST)
The Sensex ended the day with a gain of 140.36 points, or 1.47% at 9,708.50 after touching a high of 9,826.22 and a low of 9,547.21. The broad-based NSE Nifty climbed 42.80 points, or 1.44% at 3,020.95 after hitting a high of 3,054.30 and a low of 2,966.40
Biggest gainers in the 30-share index were Jaiprakash Associates (7.26%), Tata Steel (5.02%), Tata Motors (4.64%), Reliance Capital (4.63%), Ranbaxy Laboratories (4.58%), and State Bank Of India(4.36%).
On the other hand, Housing Development Finance Corporation (2.71%), NTPC (1.80%), ICICI Bank (1.58%), Hindustan Unilever (0.50%), and Oil & Natural Gas Corporation (0.41%) were the biggest losers in the Sensex.
Overall market breadth was sharply positive. Out of the total 2,542 stocks traded at BSE, 1,551 advanced, 903 declined while 88 remained unchanged.
BSE Bulk Deals to Watch -March 31 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
31/3/2009 530499 A K CAPITAL FIRSTRAND PUBLIC LIMITED COMPANY S 40000 142.00
31/3/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD B 321681 400.64
31/3/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD S 321681 400.87
31/3/2009 532981 ANU LABS KAMAL KUMAR DUGAR AND CO B 61000 260.26
31/3/2009 532995 AVON CORP PANKAJ PRATAPSINH SARAIYA B 135000 5.02
31/3/2009 532719 BL KASHYAP RUANE CUNNIFF AND GOLDFARB INC SUB RUANE ACACIA PARTNERS LP B 150000 129.00
31/3/2009 532719 BL KASHYAP ARISAIG INDIA FUND LIMITED S 446650 129.00
31/3/2009 533026 CHEMCEL SANTOSH SHAHRA B 300000 6.41
31/3/2009 533026 CHEMCEL VIKSIT ENGINEERING LIMITED S 250630 6.50
31/3/2009 532608 DECCAN CHR MORGAN STANLEY AND CO INTERNATIONAL LIMITED PLC S 2375990 47.00
31/3/2009 532858 DECOLIGHT CE CLARUS FINANCE AND SECURITIES B 268159 6.50
31/3/2009 532858 DECOLIGHT CE DIAMANT INVESTMENT AND FINANCE S 268159 6.50
31/3/2009 532760 DEEP INDS ARCADIA SHARE AND STOCK BROKERS PVT LTD B 127516 40.24
31/3/2009 532760 DEEP INDS ARCADIA SHARE AND STOCK BROKERS PVT LTD S 110718 41.20
31/3/2009 508860 DIAMANT INV FANCY INVESTRADE PVT LTD S 10150 54.19
31/3/2009 532022 FILAT FASH VANNA TRADING COMPANY PVT LTD B 36950 69.10
31/3/2009 531137 GEMSTONE INV ANKIT RAJENDRA SANCHANIYA S 23007 22.50
31/3/2009 531137 GEMSTONE INV PREM MOHANLAL PARIKH S 23208 22.50
31/3/2009 500168 GOODYEA INDI MINAL B. PATEL B 345337 95.14
31/3/2009 514238 IKAB SECU IN ABHISHEK BAGRI B 153200 8.34
31/3/2009 514238 IKAB SECU IN MADHU JAJOO S 144300 8.34
31/3/2009 532612 INDOCO REM SPA HOLDINGS PRIVATE LIMITED B 240000 137.00
31/3/2009 532612 INDOCO REM NARSINH INVESTMENT AND FIN PVT LTD S 243364 137.06
31/3/2009 532717 INDOTECHTR RAJASHTAN GLOBAL SECURITIES LTD B 125000 299.99
31/3/2009 532717 INDOTECHTR BLACKSTONE ASIA ADVISORS L.L.C. AC THE INDIA FUND INC S 190628 300.01
31/3/2009 532187 INDUS IND BK GIRDHARILAL V. LAKHI B 2000000 32.65
31/3/2009 532187 INDUS IND BK ASHOK LEYLAND LTD. S 2000000 32.65
31/3/2009 505840 JAIPAN INDUS MADHUKAR B SANAS B 44369 35.08
31/3/2009 530955 KAILASH FICO ALPHA GRAPHIC INDIA LTD B 66899 27.60
31/3/2009 530955 KAILASH FICO VISTA FOOD PRODUCTS PVT LTD S 77814 27.60
31/3/2009 522298 MICRO FORGE ROOPKAMAL KAUR POONIAN B 41700 2.57
31/3/2009 522298 MICRO FORGE DEEPINDER SINGH POONIAN S 41700 2.57
31/3/2009 500370 SALORA INT AYUSH JIWARAJKA B 132598 27.70
31/3/2009 500370 SALORA INT TARUN JIWARAJKA B 114950 28.55
31/3/2009 500370 SALORA INT YES INVESTMENTS B 45949 28.26
31/3/2009 500370 SALORA INT ARPIT CHAURASIA S 107548 27.96
31/3/2009 500370 SALORA INT MAYANK CHAURASIA S 150000 27.60
31/3/2009 500370 SALORA INT DSP MERRILL LYNCH S 49950 27.86
31/3/2009 526981 SHRI BAJRANG CLARUS FINANCE AND SECURITIES B 240092 14.10
31/3/2009 526981 SHRI BAJRANG DIAMANT INVESTMENT AND FINANCE S 240092 14.10
31/3/2009 508976 SPANCO AVL INDIA LEASING B 685000 27.61
31/3/2009 508976 SPANCO INTELLINVOFININDIAPVTLTD S 685000 27.60
31/3/2009 523756 SREI INFRA ARISAIG PARTNERS ASIA PTE LTD S 610000 24.95
31/3/2009 590037 STEEL EXCH CLARUS FINANCE AND SECURITIES B 419236 13.43
31/3/2009 590037 STEEL EXCH DIAMANT INVESTMENT AND FINANCE S 419236 13.43
31/3/2009 513414 SUJANA METAL MORGAN STANLEY MAURITIUS COMPANY LIMITED B 461665 6.18
31/3/2009 513414 SUJANA METAL CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD S 461665 6.18
31/3/2009 532299 TEL EIGHTEEN T ROWE PRICE INT DISC FUN D B 804973 67.50
31/3/2009 532299 TEL EIGHTEEN T ROWE PRICE NEW ASIA FUN D B 1926292 67.50
31/3/2009 532299 TEL EIGHTEEN MORGAN STANELY INST FUND INC EMERGING MKT PORT MSEM S 634100 67.50
31/3/2009 532299 TEL EIGHTEEN MORGAN STANLEY INVESTMENT MGT INC AC MORGAN STANLEY MGMT EMPT S 718476 67.50
31/3/2009 519228 TEMPT.FOODS VENTURE BUSINESS ADVISORS PVT LTD B 435171 29.87
31/3/2009 519228 TEMPT.FOODS BEEJAYINVNFINCONPVTLTD S 131409 29.63
31/3/2009 531249 WELL PACK PA GANDHI MANISHA NAVNEETLAL B 35565 148.48
31/3/2009 531249 WELL PACK PA TUSHAR RAMESHBHAI PATEL B 29500 148.00
31/3/2009 531249 WELL PACK PA SAGARTEX CREATION B 75000 150.20
31/3/2009 531249 WELL PACK PA SHREE GOPAL BAJORIA S 25000 148.90
31/3/2009 531249 WELL PACK PA VISHESHSHAHRA S 149702 149.73
NSE Bulk Deals to Watch - March 31 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
31-MAR-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD,BUY,319648,392.79,-
31-MAR-2009,ABAN,Aban Offshore Ltd.,GENUINE STOCK BROKERS PVT LTD,BUY,206629,396.85,-
31-MAR-2009,ABAN,Aban Offshore Ltd.,P R B SECURITIES PRIVATE LTD,BUY,207227,392.88,-
31-MAR-2009,ANANTRAJ,Anant Raj Industries Limi,SUMMER BUILDERS PVT. LTD.,BUY,2420555,40.00,-
31-MAR-2009,BOMDYEING,Bombay Dyeing & Mfg Co.,SUNEET LAL,BUY,182630,164.87,-
31-MAR-2009,DUNCANSIND,Duncans Industries Ltd,ARYAVART OVERSEAS (P) LTD,BUY,500000,5.75,-
31-MAR-2009,DUNCANSIND,Duncans Industries Ltd,ISHWAR DAYAL KANSAL,BUY,500000,5.75,-
31-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,104385,2084.61,-
31-MAR-2009,GMRINDS,GMR Industries Limited,PRIME INDIA INVESTMENT FUND LTD,BUY,200000,70.56,-
31-MAR-2009,INDUSINDBK,IndusInd Bank Ltd.,KII LTD.,BUY,3503337,31.91,-
31-MAR-2009,INDUSINDBK,IndusInd Bank Ltd.,MODERN GEARS PVT LTD.,BUY,2000000,32.10,-
31-MAR-2009,KOHINOOR,Kohinoor Foods Limited,KAPIL SINGHAL,BUY,150000,52.87,-
31-MAR-2009,PVP,PVP Ventures Limited,VINAY CHILAKAPATI,BUY,1403947,9.93,-
31-MAR-2009,SALORAINTL,Salora International Ltd.,AYUSH JIWARAJKA,BUY,83500,27.87,-
31-MAR-2009,SALORAINTL,Salora International Ltd.,TARUN JIWARAJKA,BUY,105050,27.52,-
31-MAR-2009,SASKEN,Sasken Commu Techno Ltd,ALTIUS SECURITIES TRAD. P.LTD.,BUY,220000,59.67,-
31-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PVT LTD,BUY,1200049,23.53,-
31-MAR-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD,SELL,319648,393.01,-
31-MAR-2009,ABAN,Aban Offshore Ltd.,GENUINE STOCK BROKERS PVT LTD,SELL,206629,397.04,-
31-MAR-2009,ABAN,Aban Offshore Ltd.,P R B SECURITIES PRIVATE LTD,SELL,207227,393.12,-
31-MAR-2009,ANANTRAJ,Anant Raj Industries Limi,QUANTUM M LIMITED,SELL,4420555,40.00,-
31-MAR-2009,BOMDYEING,Bombay Dyeing & Mfg Co.,SUNEET LAL,SELL,193481,165.20,-
31-MAR-2009,BRANDHOUSE,Brandhouse Retails Limite,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,382831,15.54,-
31-MAR-2009,DUNCANSIND,Duncans Industries Ltd,INTELL INVOFIN INDIA PVT LTD,SELL,1000000,5.75,-
31-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,104385,2085.88,-
31-MAR-2009,GMRINDS,GMR Industries Limited,SHRINE FINANCE & INVESTMENTS PVT LTD,SELL,195615,70.52,-
31-MAR-2009,ICSA,ICSA (India) Limited,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,250000,89.20,-
31-MAR-2009,INDUSINDBK,IndusInd Bank Ltd.,AMAS MAURITIUS LTD,SELL,3066065,32.00,-
31-MAR-2009,INDUSINDBK,IndusInd Bank Ltd.,ASHOK LEYLAND LIMITED,SELL,3025000,32.32,-
31-MAR-2009,IOLN,IOL Netcom Limited,INTELL INVOFIN INDIA PVT LTD,SELL,250000,36.40,-
31-MAR-2009,KOHINOOR,Kohinoor Foods Limited,OPUS PROPERTIES LIMITED,SELL,450000,52.86,-
31-MAR-2009,PVP,PVP Ventures Limited,INDIABULLS FINANCIALS SERVICES LTD,SELL,1403947,9.93,-
31-MAR-2009,SALORAINTL,Salora International Ltd.,AYUSH JIWARAJKA,SELL,10500,27.86,-
31-MAR-2009,SALORAINTL,Salora International Ltd.,DSP MERRILL LYNCH,SELL,73483,27.81,-
31-MAR-2009,SALORAINTL,Salora International Ltd.,MAYANK CHAURASIA,SELL,160000,27.75,-
31-MAR-2009,SASKEN,Sasken Commu Techno Ltd,CHANDRASEKAR CHANDRASEKAR SRIKANTH,SELL,219055,59.67,-
31-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PVT LTD,SELL,1233846,23.36,-
31-MAR-2009,SREINTFIN,SREI Infrastructure Finan,ARISAIG PARTNERS - INDIA FUND,SELL,1536704,24.91,-
Post Session Commentary - March 31 2009
Domestic market closed on positive note following firm cues from the Asian markets along with positive European markets. Favorable US index futures also added to the sentiments. The market continued it’s up move during the trading session on buying interest across the counters though; it had trimmed its gains amid volatility during early trading.
The Indian market belled the day on pleasant note after recovering smartly from last session’s losses tracking gains in Asian stocks. However the US stock markets plunged due to concerns about the possible bankruptcy of General Motors and Chrysler after the White House rejected their turnaround plans. However, key stocks turned irregular, as investors were a little cautious on negative sentiments across US market. Further, benchmark indices managed to gain momentum and bounced back from day’s low as buying emerged over the ground. Market continued to gain ground to end the day on positive note led by firm sentiments. From the sectoral front, all indices ended in green. Besides, Capital Goods, Pharma, Reality, Auto, Metal, Teck, IT, FMCG and Bank stocks witnessed most of the buying. Mid Cap and Small Cap stocks also followed the same trend.
Among the Sensex pack 25 stocks ended in green territory and 5 in red. The market breadth indicating the overall health of the market remained strong as 1551 stocks closed in green while 903 stocks closed in red and 88 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 140.36 points at 9,708.50 and NSE Nifty ended up by 42.80 points at 3,020.95. BSE Mid Caps and Small Caps closed with gains of 65.64 and 46.58 points at 2,956.23 and 3,246.63 respectively. The BSE Sensex touched intraday high of 9,826.22 and intraday low of 9,547.21.
Gainers from the BSE Sensex pack are JP Associates (7.26%), Tata Steel (5.02%), Tata Motors (4.64%), Ranbaxy Lab (4.58%), SBI (4.36%), RCom (4.02%), M&M Ltd (3.51%), Hindalco (3.39%), L&T Ltd (3.33%) and ITC Ltd (3.30%).
Losers from the BSE Sensex pack are HDFC (2.71%), NTPC Ltd (1.80%), ICICI Bank (1.58%), HUL (0.50%) and ONGC Ltd (0.41%).
On the global markets front the Asian markets which opened before the Indian market, ended mostly in green. However, Japan’s Nikkei tumbled as investors preferred to offload shares on the last trading day of the fiscal year ahead of the Tankan Survey slated to be released tomorrow. Besides, South Korean data boosts economic recovery hope as industrial output rose 6.8% in February from January and consumer goods sales by 5.0%, each marking the biggest rise in more than a decade. Shanghai Composite, Hang Seng, Straits Times index and Seoul Composite ended higher by 15.17, 119.69, 26.85 and 8.8 points at 2,373.21, 13,576.02, 1,699.99 and 1,206.26 respectively. However, Nikkei 225, lost 126.55 point at 8,109.53.
European markets which opened after the Indian market are trading higher. In Frankfurt the DAX index is trading up by 38.09 points at 4,027.32 and in London FTSE 100 is trading higher by 85.07 points at 3,847.98.
The BSE Capital Goods stocks advanced by (3.29%) or 205.73 points to close at 6,466.03. Major gainers are Siemens Ltd (10.04%), Punj Lloyd (6.80%), Areva (6.14%), ABB Ltd (4.84%) and Crompton Geaves (4.50%).
The BSE Pharma ended up by (2.97%) or 81.56 points at 2,830.11. Gainers are Sunpha Adv (17.04%), Aurobindo Pharma (9.04%), Biocon Ltd (7.96%), Wockhardt Ltd (7.14%) and Piramal Health (7.05%).
The BSE Realty index gained (2.93%) or 44.41 points to close at 1,560.83 on hopes that lower rates will spur housing demand. Gainers are Indiabull real (8.07%), Pheonix Mill (5.62%), Penland Ltd (4.57%), Housing Dev (4.46%) and Mahindra Life (4.26%).
The BSE Auto index also ended higher by (2.44%) or 73.02 points at 3,061.67 on reports the government plans to extend higher depreciation benefit of 50% on commercial vehicles by three months till June 2009. MFR Ltd (6.87%), Apollo Tyre (6.44%), Tata Motors (4.64%), M&M Ltd (3.51%) and Cummins Ind (2.80%) ended in positive territory.
The BSE Metal index closed with increase of (2.43%) or 137.39 points at 5,795.07 after industrial copper increased on the London Metal Exchange. Scrips that gained are JSW Steel (8.54%), Jindal Saw (5.86%), Tata Steel (5.02%), Hindustan Zinc (4.74%) and Hindalco (3.39%).
The BSE Teck index surged (2.32%) or 41.96 points to close at 1,846.83. Main gainers are Financ Tech (6.09%), Aptech Ltd (5.71%), Rolta India (5.40%), Patni Computer (4.42%) and Mphasis Ltd (4.24%).
Ranbaxy Labs closed up by 4.58%. Ranbaxy Laboratories (Ranbaxy) and Daiichi Sankyo Company (Daiichi Sankyo) announced that Ranbaxy will launch Olvance (Olmesartan Medoxomil, antihypertensive), which was originally discovered by Daiichi Sankyo. This follows a licensing agreement between the two companies authorizing Ranbaxy to promote and market the drug in India.
L&T ended higher by 3.33%. The company has received an order worth Rs. 345 crore from the Nuclear Power Corporation of India Ltd (NPCIL) for manufacturing and supplying steam generators.
DLF Ltd gained 1%. The company has determined to deprive its windmill power generation business. According to the company it is a non-core business.
M&M Ltd surged 3.51% as the booking for the company''s newly launched vehicle, Xylo crossed the 12000 level since its launch on 13th January 2009.
Tata Power Company (TPC) went up by 0.17%. The company has commercialised the operation of 250-mega watt (MW) unit 8 of its Trombay Thermal Power Station (TTPS) in Chembur near Mumbai.
Bharat Electronics rose 2.84% after the company said it signed an agreement with Bharat Heavy Electricals to jointly set up a company for solar photo voltaic cell business.
Suzlon Energy advanced 2.54% on report that its overseas unit secured an order for supply of 63 wind turbine generators.
Jet Airways (India) slumped 1.74% after Sahara India moved to court alleging that Jet has partly defaulted in payment relating to the buyout of Sahara Airlines, now JetLite, in April 2007.
First quarterly gain for Sensex since Q4 December 2007
Key benchmark indices managed to clock decent gains in a volatile trade after a nearly 5% fall on the bourses on Monday 30 March 2009. Metal, capital goods and realty stocks rose. Banking, IT stocks and index heavyweights Reliance Industries and Larsen & Toubro came off the day's highs. The BSE 30-share Sensex rose 140.36 points, or 1.47%, up close to 160 points from the day's low but off about 120 points from the day's high.
The S&P CNX Nifty regained the psychological 3,000 level. It had fallen below that level yesterday after a steep slide in equities caused by a setback in global stocks. On Monday, 30 March 2009, stocks around the globe were slammed amid worries about the health of the US auto sector.
Volatility was immense. After opening on a firm note tracking gains in Asian stocks, the market slipped into the red in morning trade. The market recovered in volatile trade later. The market extended gains in afternoon trade tracking firm European markets which opened after Indian market. Volatility was high in mid-afternoon trade. After a sharp surge at about 14:53 IST, the market came sharply off the higher level.
European stocks rebounded on Tuesday from a sharp fall in the previous days as Marks & Spencer Group Plc posted sales that beat analysts' estimates and commodity producers climbed. Key benchmark indices in France, Germany and UK were up by between 1.4% to 2.96%.
Most of the Asian stocks edged up on Tuesday as some investors bet the most painful stretch of corporate earnings damage may be over and bought Asian technology shares. Key benchmark indices in Hong Kong, China, Taiwan, South Korea and Singapore rose by between 0.09% to 1.72%. But Japan's Nikkei stock average was down 1.54% on Tuesday, with trade thin as investors waited for details of a fresh stimulus plan for the economy due out later in the day.
Trading in US index futures showed the Dow could rise 66 points at the opening bell on Tuesday, 31 March 2009. The US markets fell sharply on Monday 30 March 2009 on concerns about potential bankruptcies in the auto sector and worries that some big banks will need a lot more bailout money. The Dow plunged 254.16 points, or 3.3%, to 7,522.02. The S&P 500 index was down 28.41 points, or 3.5%, to 787.53, and the Nasdaq composite index slipped 43.40 points, or 2.8%, to 1,501.80.
Closer home, 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. 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 during trading hours on Thursday, 26 March 2009 showed.
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 signs 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 22,423 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.
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.
Foreign funds have resumed selling after heavy purchases in the past few days. Foreign institutional investors (FIIs) sold shares worth a net Rs 464.60 crore on Monday, 30 March 2009. Foreign institutional investors (FIIs) sold shares worth a net Rs 270.70 crore on Friday, 27 March 2009, as against a huge inflow of Rs 1317.30 crore on Thursday, 26 March 2009.
The latest sharp fall in the rupee will result in a depreciation in the value of FIIs' equity portfolio to the extent of the fall in the rupee to the extent of the fall in the rupee. A sharp volatility in the rupee may also dissuade fresh buying by foreign funds. The Indian rupee declined sharply on Monday, 30 March 2009, weighed down by the dollar's strength against some currencies and weakness in regional stock markets. The rupee hit a record low beyond 52 per dollar early this month. It had bounced back later. It once again faltered later.
The rupee once again recovered today. The partially convertible rupee was at 50.65 per dollar, stronger than its previous close at 51.17/19. The rupee rose as a rise in Asian stock markets calmed concerns of capital outflows, while the dollar's weakness against some Asian units also helped.
Domestic institutional investors have been absorbing heavy selling by foreign funds witnessed in first two months of calendar year 2009. Mutual funds are likely give support to prices to prop-up year end net asset values (NAVs). Today is the last day of the financial year 2008-09 (FY 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 reportedly 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.
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 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.
Meanwhile, BJP president Rajnath Singh said in an interview to a news agency that the party will speed up foreign investment projects in the country if it wins the parliamentary elections in May 2009. The measure is part of the BJP's election manifesto to be unveiled this week.
Singh said the BJP would be more open to foreign investment than Congress, which was unable to pass major economic reforms and open the economy further up globally due to opposition from leftist allies. Singh said his party would also focus on agriculture, putting more money in the pockets of farmers. More than half of India's 1.1 billion population live in villages.
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 rose 140.36 points, or 1.47%, to 9,708.50. At the day's high of 9,826.22, the Sensex rose 258.08 points in late trade. At the day's low of 9,547.21, the Sensex fell 20.93 points in mid-morning trade.
The S&P CNX Nifty was up 42.80 points or 1.44% to 3,020.95. It hit a high of 3,054.30 and low of 2,966.40.
The BSE clocked a turnover of Rs 3,981 crore, higher than Rs 3,260.81 crore on Monday, 30 March 2009.
Nifty April 2009 futures were at 3016, at a discount of 4.95 points as compared to the spot closing of 3020.95. Turnover in NSE's futures & options (F&O) segment was Rs 48,987.44 crore, lower than Rs 50,238.21 crore on Monday, 30 March 2009.
In the quarter ended 31 March 2009, the Sensex rose 61.19 points or 0.63% from 9,647.31 on 31 December 2008. It was Sensex's first quarterly gain since the December 2007 quarter. In the financial year ended 31 March 2009, the Sensex plunged 5,935.94 points or 37.94% from 15,644.44 on 31 March 2008.
The BSE Mid-Cap index was up 2.27%. It outperformed the Sensex. The BSE Small-Cap index rose 1.46%. It underperformed the Sensex.
The BSE Capital Goods index (up 3.29%), the BSE Healthcare index (up 2.97%), the BSE Realty index (up 2.93%), the BSE Auto index (up 2.44%), the BSE Metal index (up 2.43%), the BSE TECk index (up 2.32%), the BSE IT index (up 2.3%), the BSE FMCG index (up 1.91%), the BSE Bankex (up 1.73%) outperformed the Sensex.
The BSE Consumer Durables index (up 0.52%), the BSE PSU index (up 0.74%), the BSE Oil & Gas index (up 0.87%), the BSE Power index (up 1.44%) underperfomed the Sensex.
The market breadth, indicating the overall health of the market, was strong on BSE with 1,565 shares advancing as compared with 921 that declined. A total of 61 shares remained unchanged.
From the 30 stock Sensex pack 25 stocks gained while the rest fell.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 0.28% to Rs 1,520 on bargain hunting after a slide in the past two days. But the stock came off the day's high of Rs 1,552.40.
Meanwhile, report suggests firm will begin gas production from the Krishna Godavari (KG) basin in 24 to 48 hours, with gas production from the Dhirubhai 6 (D6) block estimated to add close to $2 billion to the company's profit at peak production levels.
RIL's advance tax payment fell 16.47% to Rs 370 crore in Q4 March 2009 over Q4 March 2008.
India's largest oil exploration firm by sales ONGC fell 0.41% to Rs 779.70, off the day's high of Rs 799 as crude oil prices tumbled over 7% on Monday, 30 March 2009. Fall in crude oil prices would result in lower realizations from crude sales for the oil exploration firm. Crude oil for May 2009 delivery tumbled $3.97 or 7.58% to $48.41 a barrel on the New York Mercantile Exchange on Monday, 30 March 2009 after the Wall Street plunged on Obama administration's talk of takeover and bankruptcy for two major US automakers and bank rescues in Europe prompted investors to book profits after a recent run-up.
The strengthening of dollar against euro was also one of the reasons for the sharp fall in crude oil prices. The dollar strengthened to its highest level against the euro in more than a week, limiting the appeal of commodities as an investment.
Shares of oil marketing companies rose after the government recently 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 2.31% and 2.34% respectively.
Indian Oil Corporation fell 0.09% 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.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 3.33% to Rs 672.65. However, the stock came off the day's high of Rs 689.80. It has bagged an order worth Rs 1100 crore in electrical construction sector.
Other capital goods stocks, Crompton Greaves, Bharat Heavy Electricals Punj Lloyd, Praj Industries, Thermax, ABB, rose by between 0.56% to 6.8%.
Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. DLF, Housing Development & Infrastructure, Indiabulls Real Estate and Unitech rose by between 1% to 8.07%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
Metals stocks gained as industrial copper rose on the London Metal Exchange. Steel Authority of India, Tata Steel, National Aluminum Company, Sterlite Industries, Hindustan Zinc, and Hindalco Industries, rose by between 1.37% to 5.02%.
Banking stocks rose in choppy trade on hopes a further fall in interest rates may boost lending growth and on recovery in bond prices. India's largest bank in terms of assets and branch network State Bank of India rose 4.36% to Rs 1,066.35 off the day's high of Rs 1,083.65. It hit a low of Rs 995.30. 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 fell 1.58% to Rs 332.60. It hit a high of Rs 345.90 and a low of Rs 314.50. Its American depository receipts (ADR) fell 13.27% on Monday, 30 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 2.42% to Rs 967.85. The stock came off a high of Rs 985. It hit a low of Rs 904.10. Its ADR fell 8.49% on Monday. 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 fell 2.71% to Rs 1,411.20. It announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective Wednesday 25 March 2009.
Bond prices which had tumbled in the past few days recovered today on speculation yields near the highest in four months attracted investors and on speculation the central bank's plan to purchase debt in the coming months will help improve demand for the securities. Bond yields and bond prices are inversely related.
The yield on the 6.05% note due February 2019 declined nine basis points to 6.99% as of 11:34 IST in Mumbai. Ten-year yields have surged 1.74 percentage points since 31 December 2008. The Reserve Bank of India said last week it will buy as much as Rs 80000 crore ($16 billion) of existing government debt via auctions in the next six months. It may be recalled that banks made huge treasury gains in the December 2008 quarter following a surge in bond prices.
Outsourcing focussed IT firms rose on bargain hunting after a sharp slide in the past two trading sessions. India's second largest software services exporter Infosys Technologies rose 2.02% to Rs 1324.10 off the day's high of Rs 1,340. Its ADR fell 0.15% overnight. 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 1.78% even as its ADR fell 3.78% on Monday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).
India's largest software services exporter by sales TCS rose 3.3% to Rs 540 off the day's high of Rs 544. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.
Financial Technologies (India) spurted 6.09% to Rs 619.90 on reports the company is set to revive an initial public offer of its unit Multi Commodity Exchange.
Commercial vehicle makers rose on reports the government plans to extend higher depreciation benefit of 50% on commercial vehicles by three months till June 2009. Ashok Leyland and Tata Motors rose by between 2.26% to 4.64%. The higher depreciation rate translates into lower tax liabilities and lower insurance premiums for buyers of commercial vehicles.
India's largest tractor maker by sales Mahindra & Mahindra rose 3.51% after booking for the company's new vehicle Xylo crossed the 12000 mark since its launch on 13 January 2009.
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, Nestle India, Britannia Industries and ITC rose by between 0.42% to 4.2%. But India's largest FMCG firm by sales Hindustan Unilever fell 0.5%. The company's advance tax payment rose 30% to Rs 130 crore in Q4 March 2009 over Q4 March 2008.
Some healthcare stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Cipla, Dr Reddy's Laboratories, Ranbaxy Laboratories, Cadila HealthCare, Wockhardt, Biocon rose by between 0.29% to 7.96%.
Sun Pharmaceutical Industries rose 2.79% after the company on Monday 30 March 2009 said it has received approval from the US Food and Drug Administration to sell topiramate tablets, used for the treatment of seizures.
Kalpataru Power Transmission jumped 0.77% on bagging an overseas orders worth Rs 400 crore.
Airline stocks fell on reports aviation turbine fuel (ATF) prices will go up by at least 15% from 1 April 2009. Jet Airways and SpiceJet fell 1.74% and 0.37% respectively while Kingfisher Airlines rose 0.45%. ATF accounts for 50% of an airline's operational expenditure.
Tea shares rose on reports prices of Indian teas are likely to rise in the coming months. Warren Tea, Asian Tea & Exports, Mcleod Russel, Assam Company and Harrisons Malayalam roseby between 5.77% to 20%.
Unitech clocked the highest volume of 1.56 crore shares on BSE. GVK Power & Infrastructure (1.39 crore shares), Cals Refineries (1.2 crore shares), Reliance Natural Resources (1.13 crore shares) and ICICI Bank (1.05 crore shares) were the other volume toppers in that order.
ICICI Bank clocked the highest turnover of Rs 351.08 crore on BSE. Reliance Industries (Rs 254.60 crore), State Bank of India (Rs 169.61 crore), Reliance Infrastructure (Rs 162.78 crore) and Reliance Capital (Rs 146.50 crore) were the other turnover toppers in that order.
Market may exhibit strong volatility
After witnessing a strong correction yesterday, the market is likely to remain uncertain on the back of a strong intra-day volatile moves. However, firm Asian indices in current trades may release some pressure from local indices in morning trades. Among the local indices, in the near term the Nifty could test 3030 on the upside while on the downside the index may get support at 2930. The Sensex is likely to get support at 9400 and may face resistance at 9700.
US indices declined sharply on Monday, as worries about the auto and bank industries sent investors running after the recent rally.
The Dow Jones lost 254 points to close at 7522 and the Nasdaq to end 43 points lower at 1502.
All the Indian ADR's fell on the US bourses. ICICI Bank was the biggest loser and dropped over 13.27% followed Tata Motors declined 9.90%, while HDFC Bank, Rediff, Satyam, Wipro. Dr Reddy, MTNL, Patni Computers and VSNL were down around 2-8% each. However, Infosys closed in negative territory with marginal loss.
Crude oil prices lost sharply, with the Nymex light crude oil declined $3.97 at $48.41 per barrel. In the metals segment, the Comex gold for June series lost $7.60 to settle at $917.70 an ounce.
Market may recover
The market may recover after Monday's (30 March 2009) near 5% slide after most Asian stocks rose after the previous day's steep fall. Buying by mutual funds to prop up year-end net asset values (NAVs) may also support the market. Today is the last day of the financial year 2008-09 (FY 2009). However, data showing resumption of selling by foreign funds after heavy buying in the past few days may weigh on the sentiments.
Expectations of a further easing of the monetary policy by the Reserve Bank of India remain, with headline inflation at record low. 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 during trading hours on 26 March 2009 showed.
Asian shares were mostly higher on Tuesday, 31 March 2009, despite continued concerns about the US automobile and financial sectors. Japan's Nikkei 225 was up 0.9% after dropping 4.5% Monday, helped by some pension fund buying as the fiscal year there drew to a close.
Trading in US index futures showed the Dow could rise 56 points at the opening bell on Tuesday, 31 March 2009.
Closer home, foreign funds sold shares worth a net Rs 452.32 crore on Monday, as the provisional data released by the stock exchanges. Foreign institutional investors (FIIs) sold shares worth a net Rs 270.70 crore on Friday, 27 March 2009, as against a huge inflow of Rs 1317.30 crore on Thursday, 26 March 2009.
The latest sharp fall in the rupee will result in a depreciation in the value of FIIs' equity portfolio to the extent of the fall in the rupee. A sharp volatility in the rupee may also dissuade fresh buying by foreign funds. The Indian rupee declined sharply on Monday, 30 March 2009, weighed down by the dollar's strength against some currencies and weakness in regional stock markets. The rupee hit a record low beyond 52 per dollar early this month. It had bounced back later. It once again faltered later.
Meanwhile, the market sentiment may improve after BJP president Rajnath Singh said in an interview to a news agency that the party will speed up foreign investment
projects in the country if it wins the parliamentary elections in May 2009. The measure is part of the BJP's election manifesto to be unveiled this week.
Singh said the BJP would be more open to foreign investment than Congress, which was unable to pass major economic reforms and open the economy further up globally due to opposition from leftist allies. Singh said his party would also focus on agriculture, putting more money in the pockets of farmers. More than half of India's 1.1 billion population live in villages.
Bullion metals end further lower
Strong dollar continues to take shine off precious metals
Bullion metal prices ended lower for second straight day on Monday, 30 March, 2009. The strong dollar was the main reason for precious metals ending lower.
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 $7.7 (0.8%) to close at $915.5 an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 3.5%. For the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%. Year to date, gold prices are higher by 12.8%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (7.9%) since then.
On Monday, Comex silver futures for May delivery fell 23 cents (1.7%) to end at $13.033 an ounce. In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 20% this year. For 2008, silver had lost 24%.
In the currency market on Monday, the dollar moved higher against most major rivals as investors panicked amid fears in the US auto industry.
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 21 (0.14%) at Rs 15,121 per 10 grams. Prices rose to a high of Rs 15,321 per 10 grams and fell to a low of Rs 15,030 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 153 (0.7%) lower at Rs 22,025/Kg. Prices opened at Rs 22,215/kg and fell to a low of Rs 21,837/Kg during the day's trading.
Nifty April 2009 futures below 3000
Turnover declines
Nifty April 2009 futures were at 2980.80, at a premium of 2.65 points as compared to the spot closing of 2978.15. Turnover in NSE's futures & options (F&O) segment was Rs 50,238.21 crore, lower than Rs 51,171.38 crore on Friday, 27 March 2009.
Reliance Industries April 2009 futures were at premium at 1518.80 compared to the spot closing of 1516.45.
ICICI Bank April 2009 futures were at premium at 339.20 compared to the spot closing of 338.10.
State Bank of India April 2009 futures were near spot price at 1022.20 compared to the spot closing of 1022.35.
In the cash market, the S&P CNX Nifty lost 130.50 points or 4.20% at 2978.15.
Crude plunges
Demand concerns and strong dollar took crude prices substantially lower on Monday, 30 March, 2009. Many traders had anticipated that crude's recent rally was overdone and hence ended lower for the day. Prices closed below $50 after almost two weeks of rally.
On Monday, crude-oil futures for light sweet crude for May delivery closed at $48.41/barrel (lower by $3.97 or 7.6%) on the New York Mercantile Exchange. Last week, crude ended higher by 0.6%. 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 10%. On a yearly basis, crude prices are lower by 51%.
In the currency market on Monday, the dollar moved higher against most major rivals as investors panicked amid fears in the US auto industry. The dollar index gained 0.8% today.
The U.S government's auto task force determined that neither General Motors nor privately held Chrysler had submitted viable restructuring plans and also indicated bankruptcy may be required for the flagging auto companies. This issue kept selling pressure intense in the Wall Street today and stocks lingered in the red for the entire day.
Also at the Nymex on Monday, April reformulated gasoline fell 10.8 cents, or 7.3%, to $1.3799 a gallon and April heating oil dropped 9.02 cents, or 6.3%, to $1.3426 a gallon.
Natural gas for April delivery gave up 3.82 cents, or 8.8%, to $3.947 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 2,498/barrel, lower by Rs 158 (5.9%) against previous day's close. Natural gas for April delivery closed at Rs 194.3/mmbtu, higher by Rs 0.5/mmbtu (0.25%).
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