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Wednesday, April 01, 2009
Turnover surges
RIL April 2009 futures at premium
Nifty April 2009 futures were at 3067.10, at a premium of 6.75 points as compared to the spot closing of 3060.35. Turnover in NSE's futures & options (F&O) segment surged to Rs 52,145.14 crore from Rs 48,987.44 crore on Tuesday, 31 March 2009.
Reliance Industries (RIL) April 2009 futures were at premium at 1586.75 compared to the spot closing of 1581.25.
ICICI Bank April 2009 futures were near spot price at 349.50 compared to the spot closing of 349.35.
State Bank of India April 2009 futures were at discount at 1071 compared to the spot closing of 1077.45.
In the cash market, the S&P CNX Nifty gained 39.40 points or 1.30% at 3060.35.
Asian markets enters April with advance
Nikkei joins Shanghai, Sensex as gainer of the day while Sydney, New Zealand plummet deeper into the negative zone
Stock market in Asian region closed mostly higher on Wednesday, 1 April 2009, as auto related stocks advanced on speculation that US President Obama believes a quick, negotiated bankruptcy is the most possible way for GM to restructure. Meanwhile, Obama is also prepared to let Chrysler go bankrupt if it fails to form an alliance with Fiat SpA. Expectations from the G20 meeting and worries over deteriorating economic conditions weighed in Australian and Hong Kong markets dragged them into red.
On Wall Street, after two sessions of extensive sell-off, US stocks rallied yesterday, registering the first monthly gain since August 2008. After starting the day 51 points up earlier during the day, The Dow Jones Industrial Average ended higher by 87 points at 7,608. The Nasdaq Composite Index, ended higher by 27 points at 1,528. S&P 500 ended higher by 10 points at 797. For the month just ended, the Dow rose 7.7%, the S&P added 8.5%, and the Nasdaq gained 10.9%. For the year, they are still off by 13.3%, 11.7%, and 3.1%, respectively.
In the commodity market, crude oil fell below $49 a barrel, after capping its biggest monthly gain since May, on speculation that a government report today will show U.S. inventories rose from the highest level in more than 15 years as fuel demand slows.
Crude oil for May delivery fell as much as $1.38, or 2.8%, to $48.28 a barrel in electronic trading on the New York Mercantile Exchange. It was at $48.43 a barrel at 11:09 a.m. London time. Crude oil rose $1.25, or 2.6%, to $49.66 a barrel yesterday as equities gained and a weaker dollar enhanced the appeal of commodities. Crude gained 11% in the first quarter after tumbling 56% in the previous three months.
Brent crude oil for May settlement fell as much as $1.32, or 2.7%, to $47.91 a barrel on London’s ICE Futures Europe exchange. It was at $48.22 a barrel at 11:09 a.m. London time.
Gold gained for a second day on investors’ expectations that the dollar will weaken further and leaders gathering this week for Group of 20 meetings may not be able to pull the global economy out of recession.
Gold for immediate delivery gave up its yesterday’s gains as it was trading lower by NT$ 3.30 or 0.36% at $921.70 an ounce at 11:09 a.m. in London. The metal rose 4.2% in the quarter ended yesterday, the largest gain since the three months ended 31 March 2008.
In the currency market, after brief retreat, the greenback has regained momentum on talk of bankruptcy of GM and Chrysler.
The Japanese yen was quoted at 99.01 against the US dollar, depreciated from Tuesday’s quote of 97.96 yen.
The Hong Kong dollar was trading at HK$ 7.7502 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
In Sydney trades, the Australian dollar closed higher despite selling off during the local trading session. At the local close, the dollar was trading at $US0.6877, up from Tuesday's close of $US0.6854. The Australian dollar traded above $US0.6900 during offshore trading on Tuesday, supported by a positive finish on US equity markets and some US dollar selling.
In Wellington trades, the New Zealand dollar wobbled against the United States dollar on car news today, but dropped more than a cent against the Uncle Sam when it couldn't avoid an unexpected Bollard. It was worth US55.74 cent at the closing today, more than a cent down from US56.82 cents at the closing yesterday. The real impact was Reserve Bank governor Alan Bollard's unusual move of commenting on his concern at recent rises in long-term wholesale interest rates.
The South Korean currency won finished at 1,379.5 won against the U.S. dollar, up 4 won from Tuesday's close, extending the gains for the second day.
The Taiwan dollar strengthened against the US dollar as it closed trading at NT$ 33.8350, up by NT$ 0.0820 from Tuesday’s close of NT$33.917.
Coming back in equities, in Japan, stock market finished the session sharply higher, with broad based gains across the board, bloated by a government plan to support equities overshadowed weak confidence among manufacturers. Automakers and financials led the market as weakening yen against major currencies and speculation of Japanese automakers market share will expand if U.S. automakers go bankrupt.
The Nikkei 225 Stock Average index spurted 242.38 points, or 3%, to 8,351.91, while the broader Topix was 20.16 points, or 2.6%, lower to 794.
On the economic front, the Bank of Japan’s closely monitored Tankan survey data showing that the confidence amongst Japan’s business leaders continued its precipitous descent in the first quarter of 2009, with most of the major indicators below forecast.
The large manufacturer’s index fell to -58 in 2009’s first quarter, compared to the prior reading of –24 in quarter four. Meanwhile, the outlook amongst large manufacturers dropped sharply as well at –51, it was far below the previous quarter’s -36 reading.
The non-manufacturing index fell to -31 from the previous reading of -9 in quarter four. The outlook amongst non-manufacturing firms fell to -30 from a previous reading of -14.
The Tankan all-industries capex index, which measures capital expenditures by all Japanese industries apart from the financial sector, showed large manufacturers and non-manufacturers plan to decrease business investment by 6.6%.
The Natural Resources and Energy Agency said in a preliminary report that Japan’s crude oil imports in February fell 3.3% from a year earlier to 122.97 million barrels. Imports from the Middle East accounted for 89.3% of the total, up 2.6%age points from a year before for the fourth straight monthly expansion.
The results of the Tankan come a day after the Japanese prime minister instructed the government to draw up a third economic stimulus package, as financial data released on Tuesday indicated that the country is plunging into its worst recession in more than 50 years.
The Japan Mini Vehicle Association said Japanese sales of mini vehicles in March fell 13.8% from a year earlier to 223,035 units.
In Mainland China, the stock index finished the session higher, extending gains for second day in row, as investors’ enthusiasm for bargains hunting in recently battered shares on optimism the nation’s stimulus spending will help boost growth and an plenty supply of funds for short-term speculation in shares. The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, climbed up 34.80 points, or 1.5%, to 2,408.01. The Shenzhen Component Index on the smaller Shenzhen Stock Exchange put on 174.06 points, or 1.94%, to 9,156.01.
On the economic front, the CLSA China Purchasing Managers Index dropped to a seasonally adjusted 44.8 in March 2009 as compared 45.1 in February as collapsing global trade cut exports and growth across Asia.
The manufacturing index increased for a fourth month from a record low of 40.9 in November. An index of export orders rose to 41.4 in March from 39.5 in February. A measure of orders climbed to 43.6 from 44.2. Output gained to 44.3 from 43.9. An employment index rose to 47.1 from 46.6
In Hong Kong, the stock market finished the session somewhat lower, erasing positive opening as investors locked gains after Beijing economic data showed mixed signals in the China’s recovery and on a media report that President Barack Obama had determined a prepackaged bankruptcy was the best option for U.S. automakers General Motors and Chrysler.
The Hang Seng Index tumbled 56.48 points, or 0.42%, to 13,519.54, while the Hang Seng China Enterprise Index, which tracks H shares of Chinese companies, recovered 7.55 points, or 0.09% to 8,077.68.
In Australia, the stock market finished the session slightly lower after fluctuating in and out of the red, as losses in telecom, industrials, and retailers overshadowed gains in banks and property trusts on hopes an interest rate cut could boost their lending businesses and firmer energy and resources stocks on the back of gains in the commodity prices. The benchmark S&P/ASX200 index ending down less than 0.1%, or 2.4 points, at 3579.7, while the broader All Ordinaries index was off 0.1%, or 5.1 points, at 3527.2.
On the economic front, the Australian Bureau of Statistics said in a report that Australian retail trade at current prices fell 2% in February to a seasonally adjusted A$18.873 billion, from A$19.257 billion in January.
The ABS also said Australian residential housing approvals were up 7.8% on month in February at 10,050, but down 25.5% on year.
In New Zealand, the stock market commenced the new financial year in the negative territory amid the global slowdown. The share market started the day in the green patch following Reserve Bank Governor Alan Bollard's unusual step of issuing a statement expressing his concern at a recent rise in long-term wholesale interest rates. The benchmark NZX50 fell 0.82% or 21.152 points to close at 2569.24. However, the NZX 15 decreased 0.49% or 23.665 points to 4769.013.
On the economic front, according to the Westpac McDermott Miller employment confidence index, employment confidence has fallen to a historic low as gloom continues to stalk the job market. The index fell to 93.2 in the March 2009 quarter, the first time the confidence index has hit a sub-100 level since the survey began in 2004.
In South Korea, stocks closed higher, as investors scooped up carmakers and banks on hopes of an economic recovery. The benchmark Korea Composite Stock Price Index (KOSPI) rose 27.1 points to 1,233.36.
On the economic front, South Korea's consumer prices grew at a slower pace in March than in the previous month as the cost of oil products declined. According to the report by the National Statistical Office, the consumer price index rose 3.9% last month from a year earlier, slowing from a 4.1% on-year advance in the previous month. From February, consumer prices gained 0.7%.
In other economic news, South Korea's trade surplus reached a record US$4.6 billion in March mainly due to a sharp drop in imports and a surge in exports of ships. According to the Ministry of Knowledge Economy, the country's exports reached $28.3 billion last month, falling 21.2% on-year, with imports plummeting 36% to $23.7 billion.
On the other hand, South Korean automakers reported an 18.7% drop in sales for March as the global economic crisis wilted demand for their vehicles.
In Taiwan, stock market in Taiwan regained its upward momentum, led by financial and technology sector stocks supported by the gains in the DRAM makers stocks. The domestic bourses followed the regional upswing, which followed the overnight gains on Wall Street where market put up their first monthly advance in eight months. The main Taiex share index consolidated itself on the road of recovery by ending the day on a crisply higher side. Taiex added 103.61 points or 1.99%, closing the day at 5314.45.
On the economic front, Taiwan’s economic indicator showed the sixth consecutive blue in February, with the composite scores advancing one point to 10. According to the Council for Economic Planning and Development (CEPD), the rise in the composite scores was mainly due to the better performing M1B money supply, gaining one more point during the month to turn its indicator from blue to yellow-blue. The indicator in February actually reflects the economic outlook in March, so the economic climate in March seemed a little better than that in February.
In Philippines, murky economic outlook continued to keep the Philippines equities under check today, with benchmark indices closing nearly 1% lower. Philippines 2009 growth forecast has been scaled down in the latest Asian Development outlook released yesterday, citing a global downturn that brings with it reduced demand for exports, job losses, erosion in domestic consumption, and fewer investments. The benchmark index PSEi plummeted 0.95% or 18.94 points to 1,967.28, while the All Shares index fell 0.69% or 8.92 points to 1,274.98.
Philippine economy is expected to expand by just 2.5% this year, down from an earlier forecast of 3.5% and sharp drop from 2008's actual gain on 4.6%. The outlook was in line with the ADB's expectation of a marked slowdown in Southeast Asian growth, which it projects to dwindle to just 0.7% this year from 4.3% in 2008.
In India, key benchmark indices extended gains in late trade led by rally in realty, banking and IT stocks. The BSE 30-share Sensex closed up 193.49 points, or 1.99%, to 9,901.99. The S&P CNX Nifty was up 39.40 points or 1.30% to 3,060.35.
On the economic front, India's fiscal deficit for the April-February 2009 period was Rs 3,07,000 crore ($61 billion), or 94.1% of an upwardly revised budget target, a government statement said on Tuesday. In February 2009, the government revised upwards its fiscal deficit estimate for the year ending 31 March 2009 to Rs 3, 27, 000 crore, equivalent to 6% of gross domestic product from 2.5% estimated earlier. The deficit has widened after the government announced extra spending of close to Rs 1,50,000 to cover a farm debt scheme, subsidies and steps to stimulate a slowing economy.
Elsewhere, Malaysia's Kula Lumpur Composite index was up 1.33% or 11.63 points to 884.18, while Indonesia’s Jakarta composite increased by 27.67 points or 1.93% to 1,461.75. In Thailand, the Thai Stock exchange fell 1.41 points to 430.09.
In other regional market, European shares sagged on Wednesday, with oil majors leading markets lower on the first day of the second quarter. On the regional level, the U.K. FTSE 100 index fell 0.8% to 3,893.60, the German DAX 30 index lost 1.2% to 4,036.06 and the French CAC-40 index slid 1.5% to 2,766.87
Realty and IT push market
Taking lead from overseas stock markets, the 30-stock index of BSE, Sensex, in lack of clear signals gyrated around 150 points in early trades.
However, frenzied selling pressure caused it dip below 9600-mark to touch an intra-day low of 9546. Though the market erased most of its loss by noon trades, the pull-back from lower levels came toward the close, after a fresh bout of buying in several frontline stocks saw Sensex touch an intra-day high of 9922. Sensex ended the session 193 points up at 9902, while Nifty moved up by 39 points to 3060.
Market breadth was positive however. Of the 2,463 stocks traded on the BSE 1,823 stocks advanced, whereas 558 stocks declined. Eighty two stocks ended unchanged. Of the 13 sectoral indices on BSE, only three (BSE FMCG, BSE HC and BSE CG) ended lower. Wiping its losses, BSE Realty moved up 5.41% topping the list, while BSE IT, occupying the second slot, was up by nearly 3.17%.
Several Sensex stocks registered decent gains. Ranbaxy Laboratories flared up 7.73% at Rs178.40, HDFC jumped by 6.70% at Rs1505.80 and Reliance Infrastructure gained 6.64% at Rs549.55. DLF, ICICI Bank, Infosys Technologies, Tata Power and Reliance Industries were up by more than 3% each. Among laggards, Sun Pharmaceutical Industries moved down by 4.23% at Rs1065.30, Bharat Heavy Electricals Ltd lost 2.15% at Rs1,472.05 and Grasim Industries declined 2.15% at Rs141.30. Bharti Airtel, Sterlite Industries, National Thermal Power Corporation, Hindustan Unilever and ITC were down by 1% each.
Unitech attracted volumes of over 1.75 crore shares on BSE followed by Suzlon Energy (1.66 crore shares), Reliance Natural Resources (1.26 crore shares) and Cals Refineries (1.03 crore shares).
BSE Bulk Deals to Watch - Apr 1 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
1/4/2009 532875 ALLIED DIGIT BLACKROCKTRUST JAPAN B 191015 173.00
1/4/2009 532875 ALLIED DIGIT BLACKROCK ML INDIA EQT MAUR B 141424 175.00
1/4/2009 532875 ALLIED DIGIT VIVIL INVESTMENTS PVT LTD S 218000 173.17
1/4/2009 532875 ALLIED DIGIT HSBC AMC OPPORTUNITY FUND S 70515 175.02
1/4/2009 532875 ALLIED DIGIT HSBC AMC UNIQUE OPPORTUNITY S 71976 175.02
1/4/2009 532989 BAFNA PHARMA SUBHASH P RATHOD S 85000 16.21
1/4/2009 523890 DS KULKARNI ANGEL GLOBAL CAPITAL PRIVATE LIMITED B 132592 22.98
1/4/2009 523890 DS KULKARNI ANGEL GLOBAL CAPITAL PRIVATE LIMITED S 135592 23.33
1/4/2009 532717 INDOTECHTR BLACKSTONE ASIA ADVISORS L.L.C. AC THE INDIA FUND INC S 64705 300.18
1/4/2009 531092 OM MET INFRA DEUTSCHE SECURITIES MAURITIUS LIMITED S 802234 7.65
1/4/2009 531898 SANGUINE MD SUNIL RAMESHBHAI RUPANI B 100000 2.93
1/4/2009 531898 SANGUINE MD PRASHANT MAHADEV KAMBLE B 181190 3.05
1/4/2009 531898 SANGUINE MD MERULAND INSURANCE SERVICES P LTD S 200000 2.93
1/4/2009 531898 SANGUINE MD SUNIL RAMESHBHAI RUPANI S 100000 3.07
1/4/2009 523838 SIMPLX INFRA BIRLA SUN LIFE INSURANCE CO LTD S 277615 160.03
1/4/2009 531874 VENUS VENT CHANDRA SHEKHAR SUNIL BHATT B 27050 27.28
1/4/2009 531249 WELL PACK PA GANDHI MANISHA NAVNEETLAL B 22424 154.92
NSE Bulk Deals to Watch - Apr 1 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
01-APR-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD,BUY,260159,400.17,-
01-APR-2009,INDOTECH,Indo Tech Transformers Li,APL INFRASTRUCTURE PRIVATE LIM,BUY,74993,305.19,-
01-APR-2009,MAX,Max India Ltd,T.ROWE PRICE INTERNATIONAL AC INTERNATIONAL DISCOVERY FUND,BUY,1112767,98.00,-
01-APR-2009,MAX,Max India Ltd,T.ROWE PRICE INTERNATIONAL AC NEW ASIA FUND,BUY,3877549,98.00,-
01-APR-2009,PREMIER,Premier Limited,GAURAV SATYAPAL JAIN,BUY,882573,35.10,-
01-APR-2009,VALECHAENG,Valecha Engineering Limit,OCCASION IMPEX PRIVATE LIMITED,BUY,199117,29.90,-
01-APR-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD,SELL,260159,400.32,-
01-APR-2009,GMRINDS,GMR Industries Limited,SHRINE FINANCE INVESTMENTS PVT LTD,SELL,100000,73.65,-
01-APR-2009,GSPL,Gujarat State Petronet Li,IDFC INFRASTRUCTURE,SELL,3238600,39.10,-
01-APR-2009,INDOTECH,Indo Tech Transformers Li,BLACKSTONE ASIA ADVISORS LLC,SELL,57000,300.50,-
01-APR-2009,MAX,Max India Ltd,HSBC INVESTMENTS (HK) LTD A/C HGIF INDIA EQUITY FUND,SELL,4204126,98.01,-
01-APR-2009,MAX,Max India Ltd,HSBC INVESTMENTS (HK) LTD A/C INDIA EQUITY MOTHER FUND,SELL,1555874,98.01,-
01-APR-2009,PREMIER,Premier Limited,LAXMI JAIN,SELL,383933,35.10,-
01-APR-2009,PREMIER,Premier Limited,SUSHMA JAIN,SELL,400000,35.10,-
01-APR-2009,VALECHAENG,Valecha Engineering Limit,MACKERTICH CONSULTANY PVT. LTD.,SELL,200000,29.90,-
01-APR-2009,XLTL,XL Telecom Limited,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,112000,32.48,-
Post Session Commentary - Apr 1 2009
Domestic market rebounded sharply from its initial lows to close near day''s high backed by firm cues from Asian markets. Key benchmark indices witnessed upswing despite negative cues form European stocks and lower US index futures. Volatility was high during trading on continuous bouts of buying and selling. Market gained ground amid instability as strong buying emerged across the board during final trading hours led by development in manufacturing sector. The ABN AMRO Bank purchasing managers'' index (PMI), based on a survey of 500 companies, increased to a seasonally adjusted 49.5 in February from 47.0 in January. Market was also hopeful on G-20 Summit on positive notes.
The Indian market opened slightly higher but gave up its gains soon after start and slipped below baseline on profit booking emerged at higher levels. Tuesday, the US stock markets closed in green territory after coming down from the day''s high on selling pressure in the final hour of trading. Benchmark indices leaped into negative territory after tedious opening as investors'' booked profit following yesterday''s bounce. Further, market managed to recover from its lows'' to come up in positive zone on some buying momentum. Stocks extended their gains after a survey showed an improvement in the manufacturing sector. Finally, market concluded the session with gains to continue its rally for second straight day. From the sectoral front, mainly Reality, IT, Oil & Gas, Bank, Consumer Durables and Teck stocks contributed to the upward movement. Mid Cap and Small Cap stocks were also on buyer''s radar. However, Pharma, FMCG and Capital Goods stocks remained out of favor during the trading session.
Among the Sensex pack 20 stocks ended in green territory and 10 in red. The market breadth indicating the overall health of the market remained extremely positive as 1823 stocks closed in green while 558 stocks closed in red and 82 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 193.49 points at 9,901.99 and NSE Nifty ended up by 39.4 points at 3,060.35. BSE Mid Caps and Small Caps closed with gains of 55.57 and 93.24 points at 3,011.80 and 3,339.87 respectively. The BSE Sensex touched intraday high of 9,921.96 and intraday low of 9,546.29.
Gainers from the BSE Sensex pack are Ranbaxy Lab (7.73%), HDFC (6.70%), Reliance Infra (6.64%), DLF Ltd (5.68%), ICICI Bank (5.07%), Infosys Tech (3.88%), Tata Power (3.82%), Reliance (3.69%) and ONGC Ltd (3.10%).
Losers from the BSE Sensex pack are Sun Pharma (4.23%), BHEL (2.15%), Grasim Indus (1.99%), Bharti Airtel (1.72%) and Sterlite Ind (1.21%).
The exports of India fell an annual 21.7% in February to $11.91 bn, the government data showed on Wednesday and this is the fifth contraction in a row. The trade deficit narrowed to $4.9 bn in February as against $6.1 bn in January. The imports in February tumbled by 23.3% to $16.82 bn on the back of fall in oil prices, weakening domestic demand and shrinking the trade deficit. The oil imports dropped 47.5 percent during the month from to $4.05 bn. The exports during April to February 2008/09 grew 7.3% at $156.6 bn from a year ago, while the trade deficit during the period shot up to $115.1 bn from $82.2 bn a year earlier.
On the global markets front the Asian markets which opened before the Indian market, ended mostly in green following Wall Street gains overnight. Japan’s Nikkei rose as the yen''s recent weakness and overnight gains on Wall Street lifted exporters and financial shares on the first day of a new financial year. Shanghai Composite, Nikkei 225, Straits Times index and Seoul Composite ended higher by 34.80, 242.38, 2.27 and 27.1 points at 2,408.01, 8,351.91, 1,702.26 and 1,233.36 respectively. However, Hang Seng, lost 56.48 point at 13,519.54.
European markets which opened after the Indian market are trading lower. In Frankfurt the DAX index is trading down by 38.85 points at 4,045.91 and in London FTSE 100 is trading lower by 25.16 points at 3,900.98.
The BSE Realty index gained (5.41%) or 84.49 points to close at 1,645.32 on hopes that lower rates will spur housing demand. Gainers are Anant Raj (19.15%), Housing Dev (9.77%), Parsvnath (7.31%), Unitech Ltd (7.30%) and Penland Ltd (7.13%).
The BSE IT index also ended higher by (3.17%) or 72.45 points at 7,358.13. Aptech Ltd (8.82%), NIIT Ltd (8.15%), Rolta India (6.43%), Oracle Fin (5.99%) and Infosys Tech (3.88%) ended in positive territory.
The BSE Oil & Gas stocks advanced by (2.88%) or 202.96 points to close at 7,256 after the government oil bonds to compensate companies for under-recoveries on sale of petroleum products at a restricted price during the current financial year. Major gainers are Essar Oil Ltd (4.55%), RNRL (3.79%), Reliance (3.69%), Reliance Pet (3.31%) and ONGC Ltd (3.10%).
The BSE Bank index gained after touching day’s low to close with increase of (2.48%) or 111.18 points at 4,602.15. Scrips that gained are Kotak Bank (5.94%), ICICI Bank (5.07%), Yes Bank (3.51%), Federal Bank (3.29%) and Oriental Bank (3.29%).
The BSE Consumer Durables ended up by (2.36%) or 38.25 points at 1,663.80. Gainers are Rajesh Export (7.94%), Videocon Ind (5.04%), Gitanjali GE (3.76%), Blue Star (1.55%) and Titan Ind (0.53%).
The BSE Pharma index lost (0.69%) or 19.64 points to close at 2,810.47. Main losers are Wockhardt Ltd (11.11%), Dishman Pharma (4.94%), Sun Pharma (4.23%), Lupin Ltd (4.09%) and Apollo Hos (3.22%).
Hindustan Construction Company Ltd ended up by 2.55%. The company has has bagged the prestigious order for Package MC3 of 1200 MW Punatsangchhu-I Hydro Electric Project in Bhutan from Punatsangchhu-I Hydro Electric Project Authority.
Ranbaxy Laboratories zoomed 7.73% on reports that Daiichi Sankyo will meet US drug regulators next month to sort out issues at Ranbaxy''s Poanta Sahib plant in India.
DLF advanced 5.68% on reports several companies have evinced interest in acquiring the wind power business of the company.
Corporation Bank gained 0.42%. The bank has informed that Corporation Bank Benchmark Advance Rate (COBAR) has revised downward by 50 basis points to 12 % from 12.5 % p.a. with effect from April 01, 2009.
Wockhardt lost 11.11%. The pharma major informed that it will undertake the Corporate Debt Restructuring (CDR) mechanism, a system to deal with cases in which multiple lenders are involved. For the debt revamp, it has roped in ICICI Bank at the same time as its promoter Habil Khorakiwala will quit the post of Managing Director.
New financial year begins on an upbeat note; Sensex gains nearly 2%
Key benchmark indices rose for the second straight day after falling nearly 5% on Monday 30 March 2009, led by rally in realty, banking and IT stocks. Index heavyweight Reliance Industries jumped. The BSE 30-share Sensex surged 193.49 points, or 1.99%, up close to 350 points from the day's low. The S&P CNX Nifty regained the psychological 3,000 mark after falling below the mark earlier in the day. Findings of a survey which showed an improvement in Indian manufacturing sector in March 2009 offset dismal exports data for February 2009.
Concerns about the credit-crisis eased a bit after a report said Indian corporates raised Rs 37800 crore in Q1 March 2009 through bond sales, a record quarterly collection. Expectations of a further easing of the monetary policy by the Reserve Bank of India also supported stocks.
The market was volatile. After an early slide triggered by data showing resumption of selling by foreign funds, lower US index futures and political uncertainty ahead of parliamentary elections, the market soon cut losses. The market extended gains after a survey showed an improvement in the manufacturing sector. Stocks pared gains in afternoon trade after the poor exports data hit the market.
The market again regained strength before cutting gains in mid-afternoon trade. The market surged in late trade.
There will be absence of support from mutual funds in the near term. Mutual funds had supported the market last month to prop-up their net assets value for the year ended 31 March 2009 (FY 2009) which ended on Tuesday. Domestic institutional investors which includes mutual funds and insurance firms had mopped up stocks worth a massive Rs 1039.07 crore on Tuesday, 31 March 2009, as per the provisional data released by the stock exchanges. Mutual funds bought shares worth a net Rs 849.90 crore in the month of March 2009, till 30 March 2009.
Indian manufacturing activity contracted for a fifth straight month in March 2009 as demand remained depressed by the global economic downturn, although there were some signs of improvement, a survey showed on Wednesday, 1 April 2009. The new orders index rose to 49.5 in March 2009 from 45.9 in February 2009.
Signs of improvement in the manufacturing sector helped offset dismal exports data. India's exports fell an annual 21.7% in February 2009 to $11.91 billion, government data released today afternoon showed. It was a fifth straight monthly fall in exports as the global slowdown slashed demand for Indian goods. The trade deficit narrowed to $4.9 billion in February 2009 from $6.1 billion in January 2009 due to a sharp fall in imports. Imports fell an annual 23.3% to $16.82 billion in February 2009. Oil imports fell 47.5% during the month from a year earlier to $4.05 billion.
Prime Minister Manmohan Singh on 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.
Meanwhile, Indian corporate bonds sales posted their best quarter on record as government-backed infrastructure and finance companies raised funds to bolster their capital. Indian companies raised Rs 37800 crore from bonds in Q1 March 2009, 44% more than in the same period a year earlier. State-owned lender India Infrastructure Finance Co. raised Rs 7370 crore in the biggest bond sale of the quarter, followed by a Rs 3950-crore issue by the National Bank for Agriculture & Rural Development, known as Nabard.
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.
European shares edged lower on Wednesday, weighed by banks and commodities, with investors cautious ahead of a summit of G20 leaders in London. Key benchmark indices in France, Germany and UK were down by between 0.02% to 0.53%.
Asian markets rose on speculation Japanese and South Korean automakers will benefit from the possible bankruptcies of US auto makers General Motors Corp. and Chrysler LLC. Key benchmark indices in Japan, China, South Korea, Singapore, Indonesia and Taiwan were up by between 0.13% to 2.25%. But Hong Kong's Hang Seng fell 0.42%.
Markets were also looking ahead to the G20 leaders' summit in London on Thursday, 2 April 2009, even though expectations were low for any concrete new steps to support global growth.
Trading in US index futures showed, the Dow could fall 32 points at the opening bell on Wednesday, 1 April 2009. Nevertheless, the Dow futures recovered from an earlier fall of over 100 points triggered by continued concerns about the fate of large US automakers General Motors and Chrysler. The futures were volatile.
Closer home, India's fiscal deficit for the April-February 2009 period was Rs 3,07,000 crore ($61 billion), or 94.1% of an upwardly revised budget target, a government statement said on Tuesday. In February 2009, the government revised upwards its fiscal deficit estimate for the year ending 31 March 2009 to Rs 3, 27, 000 crore, equivalent to 6% of gross domestic product from 2.5% estimated earlier. The deficit has widened after the government announced extra spending of close to Rs 1,50,000 to cover a farm debt scheme, subsidies and steps to stimulate a slowing economy.
Nonetheless, 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.
Foreign funds have resumed selling after heavy purchases in the past few days. Foreign institutional investors (FIIs) sold shares worth a net Rs 531.40 crore on Tuesday, 31 March 2009. Foreign funds dumped stocks worth a net Rs 735.30 crore in two trading sessions from 27 March 2009 to 30 March 2009. Before the selling, foreign institutional investors had mopped up stocks worth Rs 3635 crore in a short span from 17 March 2009 to 26 March 2009.
A sharp fall in the rupee in the past few weeks 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.
The partially convertible rupee closed at 50.71/72 per dollar on Tuesday, nearly 1% stronger than the previous close of 51.17/19. Indian bonds and currency markets are shut on Wednesday as banks close their accounts for the financial year that ended on Tuesday.
Domestic institutional investors have been absorbing heavy selling by foreign funds witnessed in first two months of calendar year 2009.
The recent steep volatility in the currency does not augur well for corporate India as it may result in hedging losses for some firms.
The upside on the domestic bourses will be capped in the next two months due to political uncertainty ahead of parliamentary election to be held between mid-April 2009 to mid-May 2009. More so at a time when it is highly unlikely that either Congress or BJP will come to power on its own, i.e., without the support of other small/regional parties. Early estimates point a fractured mandate. An alliance led by the Congress party is ahead in pre-poll surveys carried out by several polls.
But in a move which could undermine the chances of a Congress-led alliance getting more seats in the election, RJD supremo Lalu Prasad has announced candidates for 28 of the 40 constituencies in Bihar including from the three seats where Congress has sitting MPs. RJD is one of the key constituents of the current Congress-led UPA government at the Centre.
The Congress, meanwhile, has 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 a recent 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 was up 193.49 points, or 1.99%, to 9,901.99. At the day's high of 9,921.96, the Sensex rose 213.46 points in late trade. At the day's low of 9,546.29, the Sensex fell 162.21 points in early trade.
The S&P CNX Nifty was up 39.40 points or 1.3% to 3,060.35. It hit a high of 3,069.30 and a low of 2,965.70
The BSE clocked a turnover of Rs 3,871 crore, lower than Rs 3,993.40 crore on Tuesday, 31 March 2009.
Nifty April 2009 futures were at 3067.10, at a premium of 6.75 points as compared to the spot closing of 3060.35. Turnover in NSE's futures & options (F&O) segment surged to Rs 52,145.14 crore from Rs 48,987.44 crore on Tuesday, 31 March 2009.
The BSE Mid-Cap index was up 1.88%. It underperformed the Sensex. The BSE Small-Cap index rose 2.87%. It outperformed the Sensex.
The BSE Realty index (up 5.41%), the BSE IT index (up 3.17%), the BSE Oil & Gas index (up 2.88%), the BSE Bankex (up 2.48%), the BSE Consumer Durables index (up 2.36%) outperformed the Sensex.
The BSE Healthcare index (down 0.69%), the BSE FMCG index (down 0.18%), the BSE Capital Goods index (down 0.04%), the BSE Power index (up 0.51%), the BSE Metal index (up 0.52%), the BSE Auto index (up 0.65%), the BSE PSU index (up 0.75%), the BSE TECk index (up 1.66%) underperfomed the Sensex.
The market breadth, indicating the overall health of the market, was strong on BSE with 1,845 stocks advancing as compared with 584 that declined. A total of 67 shares remained unchanged.
From the 30 stock Sensex pack, 20 stocks gained while the rest fell.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 3.69% to Rs 1,579.45. Report suggests the firm will begin gas production from the Krishna Godavari (KG) basin shortly 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.
Some of the FMCG stocks fell after recent gains on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Dabur India, Tata Tea, Marico, Britannia Industries and ITC fell by between 0.08% to 1.37%. India's largest FMCG firm by sales Hindustan Unilever fell 0.59%. The company's advance tax payment rose 30% to Rs 130 crore in Q4 March 2009 over Q4 March 2008.
Commercial vehicle maker were mixed on reports the government plans to extend higher depreciation benefit of 50% on commercial vehicles by three months till June 2009. India's largest commercial vehicle maker by sales Ashok Leyland rose 1.95%. But India's largest commercial vehicle maker by sales Tata Motors fell 0.25% on profit taking after recent strong gains. 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 2.97% after the company posted a 6% rise in total vehicles sales to 26,209 in March 2009 over March 2008.
India's largest motorbike maker by sales Hero Honda Motors fell 2.71% even as it reported 10.2% rise sales to 3.53 lakh unit in March 2009 over March 2008.
TVS Motor Company rose 2.21% after the company has posted a 4.22% rise in its two-wheeler sales to 1,21,988 units in March 2009 over March 2008.
Some healthcare stocks fell after recent gains triggered by expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Cipla, Dr Reddy's Laboratories, Lupin, Piramal HealthCare fell by between 0.26% to 3.65%.
Sun Pharmaceutical Industries fell 4.23% after a US unit said it has recalled generic heart tablets.
Wockhardt tumbled 11.11% as the drugmaker sought to restructure its debt and said it is evaluating a recast of certain businesses and units, suggesting a liquidity crunch.
Shares of two GSM-based telecom operators fell after the telecom tribunal allowed CDMA players to launch GSM-based telecom services India's largest GSM mobile services provider by market share Bharti Airtel fell 1.72%. India's second largest listed GSM operator by sales Idea Cellular fell 1.1%. Meanwhile, India's largest listed CDMA player by market share Reliance Communications (RCom) rose 3.06%.
Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. Housing Development & Infrastructure, Anant Raj Industries and Unitech rose by between 1.25% to 19.15%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
DLF rose 5.68% on reports several companies have evinced interest in acquiring the wind power business of the company.
Banking stocks rose on hopes a further fall in interest rates may boost lending growth. However, they were volatile. India's largest private sector bank by net profit ICICI Bank rose 5.07% to Rs 349.45. It hit a high of Rs 354 and a low of Rs 324 so far in the day. Its American depository receipts (ADR) rose 4.81% on Tuesday, 31 March 2009. ICICI Bank's advance tax payment remained unchanged at Rs 250 crore in Q4 March 2009 when compared to Q4 March 2008.
India's second largest private sector bank by operating income HDFC Bank rose 3.03% to Rs 997.15. It hit a high of Rs 1,004 and a low of Rs 952 so far in the day. Its ADR rose 9.13% on Tuesday. Its advance tax payment rose 10% to Rs 275 crore in Q4 March 2009 over Q4 March 2008.
India's largest bank in terms of assets and branch network State Bank of India rose 0.69% to Rs 1,073.95. It hit a high of Rs 1,079.70 and a low of Rs 980. Its advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.
India's biggest dedicated housing finance firm by operating income HDFC rose 6.7%. It announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective 25 March 2009.
SREI Infrastructure Finance galloped 14.78% on bargain hunting after the stock tumbled 20.65% in the preceding seven trading sessions.
Outsourcing focussed IT stocks rose on hopes aggressive measures by the United States to revive the economy may bear fruit. US is the biggest market for Indian IT firms. India's second largest software services exporter Infosys Technologies rose 3.88%. Its ADR rose 2.94% 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 2.53%. Its ADR fell 0.14% on Tuesday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).
India's largest software services exporter by sales TCS rose 0.8%. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.
Metals stocks gained as a measure of six primary metals traded in London advanced 2.1% on Tuesday, 31 March 2009. Tata Steel, Sterlite Industries, National Aluminum Company and Hindalco Industries rose by between 0.98% to 1.87%.
Hindustan Zinc rose 3.23% after it hiked zinc prices more than 4%.
Cement shares rose on reports cement prices are likely to rise in western part of India from Wednesday, 1 April 2009. Birla Corporation of India, ACC, Ambuja Cements rose by between 0.62% to 1.85%. But Grasim Industries fell 1.83%.
Cement prices could reportedly strengthen in the range of Rs 3 to Rs 8 per 50-kilogram (kg) bag in Maharashtra and Gujarat from today, 1 April 2009. According to reports, the price hike is likely to be effected in other parts of the country also, depending on market response.
Unitech clocked the highest volume of 1.75 crore shares on BSE. Suzlon Energy (1.66 crore shares), Reliance Natural Resources (1.26 crore shares), Cals Refineries (1.13 crore shares) and IFCI (99.18 lakh shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 282.18 crore on BSE. Reliance Capital (Rs 246.44 crore), ICICI Bank (Rs 2227.63 crore), Reliance Infrastructure (Rs 174.75 crore) and State Bank of India (Rs 134.89 crore) were the other turnover toppers in that order.
Market may rise on firm global cues
The market is likely to display a positive trend on the back of increasing investor confidence and positive global cues. Strong investor's appetite for heavyweights and sectoral stocks could see the market to extend its winning streak. However, caution should be maintained as higher bouts of intra-day volatility is likely to persist. Among the local indices, the Nifty could test higher levels in the 3050-3100 range and has a support at 2980. The Sensex on the downside may slip to 9550 and may face resistance at 9850.
Major US indices rose Tuesday, recharging the rally that gave the Dow Jones industrial average its first month of gains after six straight declines. But all three major gauges declined in the first quarter. While the Dow Jones flared up by 87 points at 7609, the Nasdaq moved up by 27 points to close at 4085.
Except MTNL & Wipro all the Indian ADRs traded firm on the US bourses. Dr Reddy's led the pack with gains of over 9.76% followed by HDFC Bank gained 9.13% and Tata Motors advanced 8.35% while, Patni Computers, Infosys, satyam, ICICI Bank and VSNL closed with the gains of 1-7% each.
The Nymex light crude oil for May delivery gained by 1.49% to close at $49.90 a barrel. In the commodity space, the Comex gold for June delivery jumped $7.30 to settle at $925 an ounce.
Market may edge higher; upside capped
The market may edge higher on the first trading session of the new financial year FY 2010, tracking gains in Asian stocks
. But heavy selling by foreign funds after huge purchases in the past few days, lower US index futures and political uncertainty ahead of parliamentary elections may cap the upside. Traders and operators who had closed positions at the year-end may start building fresh positions from the beginning of the new financial year. Some traders who don't want to show positions on their balance sheet typically unwind positions before the year-end.
Auto and cement shares will in the spotlight in the next 2-3 days as firms release sales/dispatches figures for March 2009.
There will be absence of support from mutual funds. Mutual funds had supported the market last month to prop-up their net assets value for the year ended 31 March 2009 (FY 2009) which ended on Tuesday. Domestic institutional investors which includes mutual funds and insurance firms had mopped up stocks worth a massive Rs 1039.07 crore on Tuesday, 31 March 2009, as per the provisional data released by the stock exchanges. Mutual funds bought shares worth a net Rs 849.90 crore in the month of March 2009, till 30 March 2009.
As per the provisional data released by the stock exchanges, foreign funds sold shares worth a net Rs 583.65 crore on Tuesday, 31 March 2009. Foreign funds dumped stocks worth a net Rs 735.30 crore in two trading sessions from 27 March 2009 to 30 March 2009. Before the selling, foreign institutional investors had mopped up stocks worth Rs 3635 crore in a short span from 17 March 2009 to 26 March 2009.
Asian stocks were in green on Wednesday, 1 April 2009. Key benchmark indices in Hong Kong, Japan, China, South Korea, Singapore, Indonesia and Taiwan were up by between 0.14% to 2.1%. Markets were also looking ahead to the G20 leaders' summit in London on Thursday, 2 April 2009, even though expectations were low for any concrete new steps to support global growth.
But trading in US index futures showed, the Dow could fall 75 points at the opening bell on Wednesday, 1 April 2009, on continued concerns about the fate of large US automakers General Motors and Chrysler.
Indian bonds and currency markets are shut on Wednesday as banks
close their accounts for the financial year that ended on Tuesday.
Daily News Roundup - Apr 1 2009
Wockhardt announced major organizational changes and admitted that it was facing problems in servicing its debts. (ET)
Talks between Sun Pharma and Taro fail over price for the latter’s promoter holding. (ET)
Mindtree is eyeing strategic buyouts in package application in mechanical engineering service areas. (BL)
Sahara India takes Jet Airways to high court claiming the airline defaulted in its payment commitments. (BL)
TRAI dismiss COAI petition to allow RCOM to offer services using both GSM and CDMA technologies. (BL)
Kalpataru Power bags three projects for transmission lines worth Rs4bn. (BL)
Aurobindo Pharma gets US FDA approval for anti-AIDS combination drug. (BL)
Ranbaxy is all set to launch a drug for high blood pressure discovered by Daiichi. (BL)
Micro Technologies is close to sign a MoU with Japan Homeland Security Corporation. (BL)
GAIL-HPCL out bids Reliance for the city gas projects. (BL)
Suzlon Energy’s Australian subsidiary enters into contract with AGL Energy Ltd for supplying 132.3MW wind turbine capacity. (BL)
Canara Bank cuts BPLR by 50bps to 12%. (FE)
HPCL’s Vizag refinery and Mangalore refinery of ONGC have been named as buyers of the initial crude oil from Cairn India’s Rajasthan block. (ET)
SAIL likely to produce 12mt steel in FY10. (ET)
PNB reduces interest rate on retail term deposit below three years by 50-100 bps. (BS)
Zydus Cadila receives nod from US FDA for its anti-epileptic drug, Topiramate. (BS)
Godrej looking at acquiring companies in the household and haircare segments in developing economies. (BS)
Suzlon has entered into an agreement with AGL Energy for a 132mw project. (BS)
Vijaya Bank cuts BPLR by 50bps to 12.25%. (FE)
India recorded capital account deficit Q3 FY09, first time in over a decade. (BS)
Fiscal deficit reaches 94%of the annual revised target of 6% for FY09 in the first 11 months. (ET)
ADB predicts 5% growth for Indian economy in FY10 sharply below its earlier estimate of 7%. (BS)
Telecom tribunal TDSAT upheld Government’s decision to allow CDMA players to launch GSM services. (ET)
Cement price to rise Rs3-8 per 50kg bag in major consumption markets such as Maharashtra and Gujarat. (BS)
Government mulls anti-dumping duty on steel to protect domestic steel companies. (BS)
TRAI rejects DOT views on imposing entry fee on internet service providers. (BL)
The ministry for commerce and industry has recommended special duty on imported CR stainless steel. (ET)
Oil companies hike ATF prices by 10%. (ET)
Consumer price inflation for industrial workers remained at 9.6% in February 2009 against 10.45% in the previous month. (ET)
Indian companies borrowed US$452mn in February 2009. (ET)
RBI has decided to extend the special refinance facility available to NBFCs by three months till June 2009. (BS)
Economic slowdown to hurt the retail sector for another 12-18 months, as per KPMG. (ET)
RBI wants to regulate NBFC holding companies. (BS)
As is, where is basis
Our lives improve only when we take chances - and the first and most difficult risk we can take is to be honest with ourselves.
But, taking chances now may not be too prudent a move, as the market can always make a fool out of you. So, take the world as it is and not as it ought to be. Take for instance the rising threat of terrorism, what with Taliban threatening to attack the US.
Coming to the market, the key indices have logged slim gains in the January-March quarter. This is the first such instance in over a year. However, the real test for the bulls will come this month, as we approach elections and earnings. There is also considerable anxiety over the health of the US banks and its fallout worldwide. One thing is sure that the re-balancing process will take time.
Today, we expect the market to maintain the current momentum. But, one should not be surprised if there is some cooling from higher levels.
Meanwhile, the circuit filter for the April-June quarter is at 950 points for Sensex. We can always expect it on the downside but can’t hope for it on the upside.
FIIs were net sellers in the cash segment on Tuesday at Rs5.84bn while the local institutions poured Rs10.39bn. In the F&O segment, the foreign funds were net sellers at Rs11.1bn.
US stocks climbed on Tuesday, ending March on a very upbeat note with the key stock benchmarks posting their best monthly gains in more than six years and one of the top 20 months since 1950.
Tuesday's rally gave the Dow Jones Industrial Average its first monthly gains after six straight months of declines. But all three major indices declined in the January-March quarter.
The Dow rose 87 points, or 1.2%, to 7,608.92. The S&P 500 index gained 10 points, or 1.3%, at 797.87. The Nasdaq Composite index advanced 27 points, or 1.8%, to 1,528.59.
All the three major indices had posted bigger gains through the late afternoon, but the advance lost some steam near the close.
US stocks had fallen in the previous two sessions on worries about the auto and bank sectors. Prior to that, stocks had gained more than 20%, with the Dow and S&P 500 bouncing off 12-year lows hit early in March. Thoee gains were sparked by optimism that the economy is closer to stabilizing.
Up until the last few minutes of trade, the Dow had been on track to see its best March since 1928. But some late selling left the blue-chip indicator with a monthly gain of just 7.7% - the best since March 2002. The S&P 500 gained 8.5% in March, its best since March 2000. The Nasdaq is up 10.9%, its best March ever, going back to its inception in 1971.
Year-to-date, the Dow is down 13.3%, making the first quarter its worst since 1939. For the quarter and year-to-date, the S&P 500 is down 11.7% and the Nasdaq is off 3%.
Stock gains were broad-based, with 23 of 30 Dow stocks rising. Dow gainers included IBM, Chevron, McDonald's, 3M, Microsoft and Alcoa.
The Dow's financial components spiked too, continuing the recovery off multi-year lows. Bank of America, Citigroup and JPMorgan Chase all gained.
General Motors (GM) slumped 28%. On Monday, the Obama administration rejected turnaround plans from GM and Chrysler, saying that a bigger overhaul is needed if they want more taxpayer money. As part of the revamp, GM chief executive Rick Wagoner was asked to step down. Late on Monday, Obama appointed an auto czar to focus on the industry's woes.
The S&P/Case-Shiller Home Price index fell a record 19% in January from a year earlier, after falling a record 18.6% in December. The index is a measure of 20 major metropolitan areas.
The March consumer confidence index from the Conference Board rose to 26 from 25.3, missing forecasts for a rise to 28.
The Chicago PMI slipped to 31.4 in March from 34.2 in February, missing forecasts for a slight improvement to 34.3.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 2.68% from 2.71% on Monday.
Lending rates were mostly higher. The 3-month Libor rate dipped to 1.19% from 1.21% on Monday. The overnight Libor rate rose to 0.51% from 0.29% Monday. Libor is a bank-to-bank lending rate.
In currency trading, the dollar fell versus the euro and gained against the yen.
US light crude oil for May delivery settled up $1.25 to $49.66 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery rose $7.30 to settle at $925 an ounce.
Wednesday morning brings reports on employment, manufacturing, housing, construction spending and oil inventories. March sales from the nation's automakers are due throughout the day.
The February pending home sales index is expected to show no change after having fallen 7.7% in the previous month.
Private-sector employers are expected to have cut 663,000 from their payrolls in March after cutting 697,000 jobs in February. The report from payroll services firm ADP is closely watched ahead of Friday's monthly employment report.
Bulls staged a strong come back on Tuesday on the back of firm cues from the Asian markets coupled with all round buying witnessed in scrips across the sectors. The rally was led by the interest rate sensitive stocks followed by the capital goods and the Pharma stocks.
Among the 30-share Sensex 25 stocks ended in the positive terrain and only 5 stocks ended in the red. JP Associates, Tata Steel, Ranbaxy, Tata Motors and Reliance Communication were among the top gainers.
On the other hand, HDFC, NTPC, ICICI Bank, Hindustan Unilever and ONGC were among the major losers.
Finally, the BSE benchmark Sensex surged by 140 points 9,708 and the NSE Nifty surged by over 40 points at 3,017.
Shares of Tata Power gained by a percent to Rs765 after reports stated that it announced the commencement of operations of its 250MW unit 8 of its Trombay Thermal Power Station. The scrip touched an intra-day high of Rs789 and an intra-day low of Rs755 recording volumes of over 0.12mn shares on BSE
Shares of Reliance Industries have edged higher by 0.5% to Rs1523 after reports stated that the company is close to signing KG gas sale agreements with over 6 power companies including Dhabol. Reports also stated that the company stopped production of crude at KG-D6 for 45 days to bring more wells into operation, thus raising output to peak of 40,000 barrels per day.
The scrip touched an intra-day high of Rs1552 and an intra-day low of Rs1514 recording volumes of over 1.6mn shares on BSE.
Shares of L&T have surged by over 3% to Rs672 after the company announced that it bagged a slew of large-value orders aggregating Rs 11bn in the electrical construction sector in the fourth quarter of 2008-09. The orders have come from PowerGrid Corporation of India Limited and the Rail Vikas Nigam Limited an involves setting up high end transmission lines and substations as well as a project for the Indian Railways.
Shares of DLF advanced by 1% to Rs167 after reports stated that the company may announced a relief package for its customers of its Gurgaon project, ‘Express Greens’, a few days after it announced a similar package for those who booked at its ‘New Town Heights’ residential project.
Reports also stated that the company has decided to divest its windmill power generation business. The scrip touched an intra-day high of Rs171 and an intra-day low of Rs160 recording volumes of over 4.6mn shares on BSE.
Shares of Reliance Infrastructure have advanced by 2.5% to Rs515 after the company announced that it is empanelled as the Information Technology Implementation Agency with Power Finance Corporation for implementing information technologies in State Electricity Boards.
After staging a strong come back on Tuesday, Indian markets would look to carry the momentum atleast in the opening trades , provided global cues give some way. However, volatility would be the order of the day.
Gold witnesses first monthly drop in five months
Yellow metal ends more than 4% for first quarter
Bullion metal prices ended higher on Tuesday, 31 March, 2009. The weak dollar was the main reason for precious metals ending higher.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Tuesday, Comex Gold for April delivery rose $7.1 (0.8%) to close at $922.6 an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 3.5%. Year to date, gold prices are higher by 12%.
For the month of March, gold fell 2.1%, down for the first month in five. But the metal gained 4.3% in the first quarter. Before March, for the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (7.9%) since then.
On Tuesday, Comex silver futures for May delivery fell 4.8 cents (0.4%) to end at $12.985an ounce. In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 19.6% this year. For 2008, silver had lost 24%.
In the currency market on Tuesday, the dollar moved lower against most major rivals. The U.S. Dollar Index, a six-currency gauge that includes the euro and yen, fell as much as 0.9%. The index has dropped 2.8% in March, 2009.
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 June delivery closed lower by Rs 57 (0.4%) at Rs 15,064 per 10 grams. Prices rose to a high of Rs 15,150 per 10 grams and fell to a low of Rs 14,935 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 170 (0.8%) lower at Rs 21,855/Kg. Prices opened at Rs 22,110/kg and fell to a low of Rs 21,244/Kg during the day's trading.
Crude climbs up
Oil still stays below $50
Buoyed by a weak dollar, crude prices ended higher on Tuesday, 31 March, 2009. Prices also rose as US stocks rallied today fuelling some hopes that oil demand might not wane out in the coming months. But still after ending higher, prices closed below $50 for second straight day.
On Tuesday, crude-oil futures for light sweet crude for May delivery closed at $49.66/barrel (higher by $1.05 or 2.2%) on the New York Mercantile Exchange. Last week, crude ended higher by 0.6%.
Crude ended March trading up 10.9%. It rallied 11.3% in the first quarter. 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 12.2%. On a yearly basis, crude prices are lower by 52%.
In the currency market on Tuesday, the dollar moved lower against most major rivals. The U.S. Dollar Index, a six-currency gauge that includes the euro and yen, fell as much as 0.9%. The index has dropped 2.8% in March, 2009.
Also at the Nymex on Tuesday, May reformulated gasoline rose 1.5% to $1.40 a gallon and May heating oil gained slightly to $1.3438 a gallon.
May natural gas futures fell 17.1 cents, or 4.3%, to $3.776 per million British thermal units. Natural gas lost 10% in March and 33% in the first quarter.
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 2,481/barrel, lower by Rs 17 (0.7%) against previous day's close. Natural gas for April delivery closed at Rs 190.9/mmbtu, lower by Rs 3.4/mmbtu (1.74%).
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