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Monday, April 06, 2009
Nifty April 2009 futures near spot price
Turnover declines
Nifty April 2008 futures were at 3257.45, near the spot price of 3256.60. Turnover in NSE's futures & options (F&O) segment was Rs 48,445.32 crore much lower than Rs 56,491.50 crore on Thursday, 2 April 2009.
ICICI Bank April 2009 futures were at discount at 373.05 compared to the spot closing of 374.80.
State Bank of India April 2009 futures were near spot price at 1124.30 compared to the spot closing of 1124.75.
Tata Steel April 2009 futures were near spot price at 235.75 compared to the spot closing of 235.65.
In the cash market, the S&P CNX Nifty gained 45.55 points or 1.42% at 3256.60.
Essar Oil leads the gainers
MRPL, Chennai Petroleum Corporation, EIH, and REI Agro are among the other gainers.
Shares of oil refiners dominated the gainers in BSE 'A' group. Private sector oil refiner firm Essar Oil surged 48.38% to Rs 119.15. It topped the gainers in BSE's 'A' group. Essar Oil was expected to seal a deal this week to buy a 50% stake in the Kenya Petroleum Refinery in Mombasa. Essar will reportedly buy the stake from three private firms that are divesting from the east African nation's only refinery - Shell, BP and Chevron. However, latest reports suggested, the firm and the Kenyan government have failed to reach an agreement on who should take management control of the Mombasa-based facility.
Mangalore Refinery and Petrochemicals (MRPL), in which ONGC holds over 70% stake, spurted 19.27% to Rs 52.30. It was the second biggest gainer in 'A' group.
Chennai Petroleum Corporation, in which Indian Oil Corporation holds 51.89% stake, flared up 18.23% to Rs 121.90. It was the third biggest gainer in 'A' group.
Hospitality firm EIH jumped 18.15% to Rs 122.05 after 29.13 lakh shares, or 0.74% equity changed hands in two different block deals on the BSE and the NSE at an average price of Rs 123.08. It was the fourth biggest gainer in 'A' group.
Basmati rice processing firm REI Agro rose 15.03% to Rs 51.65. It was the fifth biggest gainer in 'A' group.
Sensex ends firm; M&M zooms 14.26%
The Sensex ended on a firm note as intense buying was seen in frontliners. Consumer durables, consumer goods, metal, auto and realty stocks led the advances, while FMCG stocks declined. It opened on a buoyant note, with a gain of 172.95 points, at 10,521.78 on Monday and gained further strength touching a high of Rs 10,654.89. Later, it pared some of its gains touching a low of 10,410.44.
Secondline stocks also supported the upmove. BSE Midcap and Smallcap index rose 2.48% and 3.21% respectively.
Amongst the sectoral indices, BSE Consumer durables soared 5.84%, Consumer goods, Metal and Auto surged over 3% each, Realty gained 2.97%, while FMCG was down by 1.82%.
On global front, Asian stocks rose, led by banks and carmakers and supported by the yen weakened to a five-month low and the statement by US Federal Reserve chairman Ben S Bernanke that policies to unfreeze credit markets are working. Nikkei gained 108.09 points, or 1.24%, to end at 8,857.93, Hang Seng index rose 452.35 points, or 3.11%, to close at 14,998.04 and Taiex index climbed 26.59 points, or 0.48%, to finish at 5,556.22.
European stocks advanced, as investors speculated the worst of the recession may be over. UK`s benchmark index FTSE 100 climbed 36.99 points, or 0.92%, to trade at 4,066.66. French benchmark index CAC 40 gained 33.63 points, or 1.14%, to trade at 2,992.37 and Germany`s benchmark index DAX advanced 44.70 points, or 1.02%, to trade at 4,429.69. (4.20 p.m., IST).
The Sensex ended the day with a gain of 186.04 points, or 1.80% at 10,534.87 after touching a high of 10,654.89 and a low of 10,410.44. The broad-based NSE Nifty climbed 45.55 points, or 1.42% at 3,256.60 after hitting a high of 3,303.90 and a low of 3,211.35.
Biggest gainers in the 30-share index were Mahindra & Mahindra (14.26%), Reliance Communications (11.19%), Larsen & Toubro (7.40%), Housing Development Finance Corporation (7.37%), Reliance Energy (6.47%), and Hindalco Industries (6.39%).
On the other hand, ACC (3.14%), ITC (2.49%), Ranbaxy Laboratories (2.30%), Grasim Industries (2.13%), Hindustan Unilever (1.67%), and State Bank Of India(1.43%) were the biggest losers in the Sensex.
Overall market breadth was sharply positive. Out of the total 2,567 stocks traded at BSE, 1,859 advanced, 633 declined while 75 remained unchanged.
BSE Bulk Deals to Watch - Apr 6 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
6/4/2009 506074 ARSHIYA INTL MONEY MATTERS ADVISORY SERVICES LIMITED B 400000 50.00
6/4/2009 506074 ARSHIYA INTL ARCHANA AJAY MITTAL B 835000 50.00
6/4/2009 506074 ARSHIYA INTL SWISS FINANCE CORPORATION MAURITIUS LTD S 999729 50.02
6/4/2009 506074 ARSHIYA INTL JPMORGAN INDIAN INVESTMENT COMPANY MAURITIUS LIMITED S 508236 50.00
6/4/2009 506074 ARSHIYA INTL NOMURA FUNDS IRELAND PLC NOMURA FUNDS IRELAND INDIA EQUITY FUND S 490000 50.01
6/4/2009 533055 EDSERV SOFT BP FINTRADE PRIVATE LIMITED B 83315 22.58
6/4/2009 533055 EDSERV SOFT BP FINTRADE PRIVATE LIMITED S 111337 22.63
6/4/2009 505790 FAG BEARING ACACIA INSTITUTIONAL PARTNERS LP B 192402 283.00
6/4/2009 505790 FAG BEARING ACACIA PARTNERS LP B 179181 283.00
6/4/2009 505790 FAG BEARING NOTZ STUCKI ET CIE S A A/C ARUNA FUND S 447177 283.00
6/4/2009 531137 GEMSTONE INV DAXESH BHAYALAL SHAH B 15000 22.30
6/4/2009 522059 INDAGE VIN SICOM LTD S 125000 52.60
6/4/2009 532832 INDBUL REAL SONATA CAPITAL PRIVATE LIMITED S 1518683 112.44
6/4/2009 511728 KZLEASING DIPAK A RAITHATHA B 50000 57.05
6/4/2009 511728 KZLEASING RAJESH SHARADBHAI UPADHYAY S 25051 57.05
6/4/2009 511728 KZLEASING KARAN MAHESHKUMAR HADVANI S 25000 57.05
6/4/2009 532307 MELST INFTEC NIRVES TRADERS PRIVATE LIMITED B 500000 13.25
6/4/2009 532307 MELST INFTEC ANTHONY CLIFFORD GALE S 500000 13.25
6/4/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PVT LTD S 36250 43.38
6/4/2009 531898 SANGUINE MD HIMANSHU AGRAWAL B 88890 2.93
6/4/2009 531917 TWINSTA SO E RAGHUNATHMPOOJARY S 100000 4.24
6/4/2009 532917 VARUN INDS AMI PATEL S 153000 20.16
6/4/2009 514470 WINSOME TEXT KUMKUM STOCK BROKER PVT LTD S 32000 35.94
NSE Bulk Deals to Watch - Apr 6 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
06-APR-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,BUY,74237,22.53,-
06-APR-2009,EVERONN,Everonn Systems India Lim,CARLSON FUND EQUITY - ASIAN SMALL CAP,BUY,133921,147.23,-
06-APR-2009,IBREALEST,Indiabulls Real Estate Li,COPTHALL MAURITIUS INVESTMENT LTD,BUY,1500000,112.67,-
06-APR-2009,MEGASOFT,Megasoft Limited,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,342414,13.92,-
06-APR-2009,MELSTAR,Melstar Info Tec Ltd,NIRVED TRADERS PVT LTD,BUY,589332,13.25,-
06-APR-2009,SATYAMCOMP,Satyam Computers Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,4552724,44.96,-
06-APR-2009,TRICOM,Tricom India Limited,DINERO PROPBUILD PRIVATE LIMIT,BUY,300000,10.53,-
06-APR-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PVT LTD,BUY,1129713,13.53,-
06-APR-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,SELL,75557,22.47,-
06-APR-2009,EVERONN,Everonn Systems India Lim,VIRMAC INVESTMENTS,SELL,102000,146.26,-
06-APR-2009,IBREALEST,Indiabulls Real Estate Li,SONATA CAPITAL PRIVATE LTD,SELL,3000000,112.60,-
06-APR-2009,MELSTAR,Melstar Info Tec Ltd,ANTHONY CLIFFORD GALE,SELL,589332,13.25,-
06-APR-2009,RELINFRA,Reliance Infrastructu Ltd,QUANTUM ( M ) LIMITED,SELL,1304191,567.72,-
06-APR-2009,SATYAMCOMP,Satyam Computers Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,4537774,44.97,-
06-APR-2009,VARUN,Varun Industries Limited,AMI PATEL,SELL,117137,20.15,-
06-APR-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PVT LTD,SELL,1129713,13.54,-
Post Session Commentary - Apr 6 2009
Indian market rose for the fourth straight session tracking firm cues from the markets all over the world. Stocks witnessed rally on a volatile session led by growing optimism that the global economic slump may be close to its end. In addition, buying by FIIs and steps taken by the G20 leaders to revive the global economy, also contributed to the northward journey. The G20 members announced a $5 trillion stimulus package, which would be delivered by 2010 end to deal with the economic recession. However, benchmark indices trimmed some of their gains during trading on account of profit booking after a decent rise.
The market opened on pleasant note directed by firm cues from the Asian markets. Also, the US stock markets on Friday ended higher on the back of better than expected results from Research in Motion and positive comments by Fed Chairman Ben Bernanke about lending to banks. Domestic market exhibited volatility after firm opening and pared some of its gains on slight bouts of selling. However, benchmark indices continued to move in positive territory as buying was witnessed in front liners. Strong European markets also lifted the sentiments. Finally, market concluded its bullish movement only by the end of session in line with most of the global stocks. BSE Sensex ended above 10,500 level and NSE Nifty above 3,200 mark. From the sectoral front, strong buying was seen mainly in Consumer Durables, Capital Goods, Metal, Auto, Reality, Bank and Teck stocks. Mid Cap and Small Cap stocks also followed the same trend. However, FMCG and IT stocks witnessed most of the selling from these baskets.
Among the Sensex pack 22 stocks ended in green territory and 8 in red. The market breadth indicating the overall health of the market remained extremely positive as 1859 stocks closed in green while 633 stocks closed in red and 75 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 186.04 points at 10,534.87 and NSE Nifty ended up by 45.55 points at 3,256.60. BSE Mid Caps and Small Caps closed with gains of 77.66 and 110.32 points at 3,203.08 and 3,547.24 respectively. The BSE Sensex touched intraday high of 10,654.89 and intraday low of 10,410.44.
Gainers from the BSE Sensex pack are M&M Ltd (14.26%), RCom (11.19%), L&T Ltd (7.40 %), HDFC (7.37%), Reliance Infra (6.47%), Hindalco (6.39%), Tata Steel (4.89%), ICICI Bank (4.00%), Sterlite Industries (3.64%), Bharti Airtel (3.35%) and DLF Ltd (3.07%).
Losers from the BSE Sensex pack are ACC Ltd (3.14%), ITC Ltd (2.49%), Ranbaxy Lab (2.30%), Grasim Indus (2.13%), HUL (1.67%) and SBI (1.43%).
The Prime Minister''s economic advisory council (PMEAC) has lowered India''s growth rate forecast to 6.5-7 per cent from previous projection of 7.1 per cent for 2008-09. The industrial growth turned negative in October and December and the industrial output again fell in January, despite the stimulus packages. The exports also fell for the fifth consecutive month in February after it had a good run in the first half of 2008-09.
On the global markets front the Asian markets which opened before the Indian market, ended higher tracking Wall Street gains overnight. Asian stocks ignored news of North Korea''s rocket launch over the weekend, which was condemned by the international community. Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended higher by 452.35, 108.09, 27.11 and 14.1 points at 14,998.04, 8,857.93, 1,847.98 and 1,297.85 respectively. However, Shanghai Composite lost 5.51 point at 2,419.78.
European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading up by 39.15 points at 4,424.14 and in London FTSE 100 is trading higher by 38.47 points at. 4,068.14.
The BSE Consumer Durables outperformed the benchmark indices and ended up by (5.84%) or 100.21 points at 1,817.38. Gainers are Gitanjali GE (25.15%), Videocon Ind (9.02%), Rajesh Export (7.50%), Blue Star (3.70%) and Titan Ind (3.05%).
The BSE Capital Goods stocks also advanced by (3.75%) or 255.37 points to close at 7,062.37. Major gainers are Reliance Industrial Infra (32.65%), Suzlon Energy (10.64%), Kalpat Power T (8.23%), Praj Industries (8.18%) and L&T Ltd (7.40%).
The BSE Metal index gained (3.65%) or 226.93 points at 6,451.12 as primary metal prices indicated some recovery in past trading session. Scrips that gained are Jai Corp Ltd (14.80%), Ispat Industries (6.94%), Gujarat NRE C (6.45%), Hindalco (6.39%) and Jindla Saw (5.02%).
The BSE Auto index increased by (3.59%) or 113.66 points to close at 3,280.58. Main gainers are M&M Ltd (14.26%), Bharat Forge (11.59%), Escorts Ltd (9.30%), Exide Industries (7.61%) and Amtek Auto (6.65%).
The BSE Realty index gained (2.97%) or 53.36 points to close at 1,848.83 on hopes that lower rates will spur housing demand. Gainers are Penland Ltd (15.42%), Housing Dev (8.91%), Pheonox Mill (8.15%), Orbit Co (5.63%) and Sobha Dev (4.66%).
The BSE FMCG index lost (1.82%) or 36.92 points at 1,989.38. United Spr (4.38%), ITC Ltd (2.49%), Colgate Palm (2.27%), HUL (1.67%) and Marico Ltd (0.93%) ended in negative territory.
M&M Ltd advanced by 14.26%. The auto company and its joint venture company, Mahindra Navistar Automotives Ltd, have tied up with Corporation Bank for vehicle finance.
Suzlon Energy increased by 10.64% as its US unit won a repeat order from US firm Duke Energy worth about $45 million for supply of 20 wind turbines.
L&T Ltd surged 7.40%. The company had won two orders worth a total of 13.44 billion rupees ($265 million) from refiner Mangalore Refinery and Petrochemicals Ltd.
JSW Steel gained 2.35% as achieved highest ever production during 4th Quarter ended March 2009 showing growth of 11% over corresponding quarter of last year. The Crude Steel production of 4,56 lakh tons in March 2009 was higher by 28% over the corresponding month of last year and 39% sequentially over February 2009.
HCL Technologies Ltd. went up by 5.01%. The company has entered into a six-year, multi-regional data center services and transformation engagement with Xerox Corporation. HCL will use Business Service Management process of Xerox to centralize and standardize Xerox’s data centers’ infrastructure. The engagement will also leverage HCL’s unique “zero-business” disruption based transition framework to ensure an accelerated risk-free transition across distributed regional data centers.
State Bank of India lost 1.43%. The bank has informed that SBI and Macquarie Group Ltd (Macquarie), on April 06, 2009 announced the launch of the Macquarie-SBI Infrastructure Fund (MSIF), which will invest in infrastructure projects in India. International investors have committed to invest $887 million to MSIF separately SBI''''s commitment of $150 million.
Sensex up 29% in less than a month
Key benchmark indices extended recent strong gains as auto, realty, metal and capital goods stocks rose. Volatility was high. The BSE 30-share Sensex jumped 186.04 points, or 1.8%, off close to 110 points from the day's high and up close to 120 points from the day's low.
The market was volatile. Firm Asian stocks, resumption of buying by foreign funds and steps taken by the G20 leaders to revive the global economy, took the BSE Sensex to a five-month high at the onset of the trading session. The Sensex rose for the fourth day in a row today. Expectations of a further easing of the monetary policy by the Reserve Bank of India (RBI) also supported the market.
After a sharp surge in early trade, the market pared gains in mid-morning trade. It lost further ground in early afternoon trade as most Asian stocks pared strong intraday gains. The market regained strength in afternoon trade as European stocks rose at the onset of the trading session. A sharp slide was witnessed in mid-afternoon trade. The market regained strength in late trade.
Indian stocks have risen sharply in the past few days as a part of a solid rally in global stocks triggered by hopes the worst of the global economic recession may be over. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 2,374.47 points or 29.09%.
European shares rose on Monday, tracking a late rally in the United States on Friday, as optimism for economic recovery picked up. Key benchmark indices in France, Germany and UK were up by between 0.09% to 0.69%.
Though most of the Asian markets were in green, many had pared earlier strong gains. Japan's Nikkei 225 Average 225 which had ended the morning trading session with a gain of 2.3%, closed 1.24% higher for the day. Key benchmark indices in South Korea, Singapore, Hong Kong and Taiwan were off the day's high. Key benchmark indices in South Korea, Singapore and Taiwan were now up by between 0.48% to 1.49%.
However, Hong Kong' Hang Seng which had pared intrday regained strength again and ended 3.11% higher for the day.
Asian stocks rose today, 6 April 2009, after Federal Reserve Chairman Ben S. Bernanke said policies to unfreeze credit markets are working. The Chinese stock market was closed for a holiday.
Trading in US futures showed the Dow could fall 28 points at the opening bell on Monday, 6 April 2009. The Dow futures were volatile.
US markets closed the week on Friday 3 April 2009 on a positive note. The Dow posted its biggest four week gain in 75 years. The Dow Jones closed up 36 points at 8,018, the Nasdaq added 19 points to close the day at 1,621 and the S&P 500 gained 8 points and closed at 843 on Friday.
Meanwhile, investors moved more cash out of safe-haven money market funds and moved it into higher-risk investments in the week ended 1 April 2009, data from Boston-based fund tracker EPFR Global showed on Friday, 3 April 2009. During the week ended 1 April 2009, long-only dedicated emerging market equity funds witnessed net inflows of $1.2 billion, according to the US-based EPFR Global, which provides fund flows and asset allocation data to financial institutions.
The broader category of Global Emerging Market (GEM) equity funds had net inflows of $867.5 million. However, India had net outflows of $4.1 million in the week ended 1 April 2009. It seems that emerging markets have once again become attractive investment destinations, promising better growth prospects, says EPFR Global managing director Brad Durham.
In the latest period, investors pulled $9.68 billion out of money market funds while developed equity markets such as the United States and Japan had outflows of $1.095 billion and $487.1 million, respectively.
In London, G20 leaders on 2 April 2009 agreed to provide a total of $1 trillion in resources to the International Monetary Fund (IMF) and other international institutions in an effort to confront a deep global economic downturn. The figure includes an agreement to boost the IMF's lending resources to $750 billion from the current level of $250 billion, the G20 leaders said in a joint statement issued at the end of a two-day emergency summit.
The G20 also agreed to provide $250 billion in trade-finance credits to combat a steep slump in global trade flows. "The global crisis is hitting emerging market and poor countries hard," said Dominique Strauss-Kahn, the IMF's managing director, in a statement. The G20 leaders have sent a powerful signal that the international community is committed to support these countries, including by ensuring that the IMF has the resources available, he said.
Citigroup Inc. economists Don Hanna and Jurgen Michels called the summit agreement a boon to emerging markets in a note to clients. The G-20 said they would couple the financing moves with steps to give emerging economic powerhouses such as China, India and Brazil a greater say in how the IMF is run.
Mexico said Wednesday, 1 April 2009, it will seek $47 billion from the IMF under the Washington-based lender's new Flexible Credit Line, which allows some countries to borrow money with no conditions.
Closer home, expectations of a further easing of the monetary policy by the Reserve Bank of India (RBI) remain with inflation near zero. Inflation as measured by the wholesale price index rose 0.31% in the 12 months to 21 March 2009, marginally above the previous week's annual rise of 0.27%, government data showed on 2 April 2009. The annual inflation rate was 7.85% during the corresponding week of the previous year.
Foreign funds have resumed buying of Indian stocks. Foreign funds bought shares worth Rs 696.30 crore on Thursday, 2 April 2009. The foreign funds bought shares worth a net Rs 234.80 crore on Wednesday, 1 April 2009. The inflow followed heavy sales in the preceding three trading sessions. Foreign funds dumped stocks worth a net Rs 1266.70 crore in three trading sessions from 27 March 2009 to 31 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.
However, a recent sharp volatility in the rupee may dissuade fresh buying by foreign funds. The rupee has bounced back after hit a record low beyond 52 per dollar early last month. The Indian rupee strengthened past 50 per dollar on Monday, 6 April 2009, its strongest in more than a month. The partially convertible rupee was at 49.98 per dollar, stronger than its Thursday's close of 50.33/35. The currency market was closed on Friday for a local holiday.
Domestic institutional investors have been absorbing heavy selling by foreign funds witnessed in first two months of calendar year 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 has helped offset dismal exports data. India's exports fell an annual 21.7% in February 2009 to $11.91 billion, data released by the government duding trading hours on Wednesday, 1 April 2009, 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.
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 may become difficult for small and medium enterprises (SMEs) with new lending regulations for banks, popularly known as Basel II norms coming into force 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.
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, 31 March 2009. 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.
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 early estimates point a fractured mandate. 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.
Meanwhile, the Bharatiya Janata Party (BJP) in its manifesto for the parliamentary elections released on Friday, 3 April 2009, said it will provide 35 kilogram (kg) of rice or wheat at Rs 2 per kg per month for Below Poverty Line (BPL) families against food coupons.
The party has gone out to woo the farmers offering them to waive off all current loans and provide fresh loans at four per cent interest rate. Every school-going girl child belonging to BPL families will be provided by a bicycle, the manifesto said, which also promised hike in income exemption limit to Rs. three lakh for the salaried class and IT exemption to all categories of defence personnel.
If it comes to power, BJP will take steps to generate employment through massive public spending on infrastructure projects. It will complete the implementation of Atal Bihari Vajpayee's dream projects: National Highway Development Project by building 15-20 kilo metre of new highways every day; and Pradhan Mantri Gram Sadak Yojana, to link all villages with over 500 people by all-weather road.
BJP said it will introduce schemes to encourage private industry and services sectors. It said it will ensure a low tax, low interest rate regime.
The party has promised exemption of personal income tax for those earning up to Rs 3 lakh per annum. For women and Senior Citizens, the exemption will be Rs 3.5 lakh per annum. This will benefit over 3.5 crore people.
BJP has also promised scrapping of the Fringe Benefit Tax (FBT), which is a source of harassment to employees and employers alike.
If it comes to power, BJP will construct 10,00,000 housing for the poor units every year, kick-start the real estate sector that is suffering at present and bring down interest on housing loans to make urban housing affordable.
The party has promised a complete exemption for interest income on bank deposits for all other than corporates and those who have business income.
To boost the tourism sector, the party will identify 50 destinations and develop infrastructure, connectivity. It will take steps to double foreign tourist arrivals in 5 years to help generate employment in hospitality industry.
BJP said it will ban foreign direct investment (FDI) in retail sector to help domestic retail trade.
The BSE 30-share Sensex was up 186.04 points, or 1.8%, to 10,534.87 its highest closing since 10 November 2008. At the day's high of 10,654.89, the Sensex rose 306.06 points in early trade its highest since 5 November 2008. At the day's low of 10,410.44, the Sensex rose 61.61 points in mid-afternoon trade.
The S&P CNX Nifty was up 45.55 points or 1.42% to 3,256.60 its highest closing since 16 October 2008.
The BSE clocked a turnover of Rs 4,672 crore today, lower than Rs 4,926.47 crore on Thursday, 2 April 2009.
Nifty April 2009 futures were at 3,260.25, at a premium of 3.65 points as compared to the spot closing of 3256.60. Turnover in NSE's futures & options (F&O) segment fell to Rs 48,445.32 crore from Rs 56,491.50 crore on Thursday, 2 April 2009.
The BSE Mid-Cap index rose 2.48% and the BSE Small-Cap index rose 3.21%. Both the indices outperformed the Sensex.
The BSE Consumer Durables index (up 5.84%), the BSE Capital Goods index (up 3.75%), the BSE Metal index (up 3.65%), the BSE Auto index (up 3.59%), the BSE Realty index (up 2.97%), the BSE Bankex (up 2.15%), the BSE TECk index (up 2%) outperformed the Sensex.
The BSE IT index was flat and matched the performance of Sensex.
The BSE FMCG index (down 1.82%), the BSE Healthcare index (up 0.08%), the BSE PSU index (up 0.65%), the BSE Oil & Gas index (up 0.99%), the BSE Power index (up 1.38%), underperfomed the Sensex. The BSE IT index was unchanged and underperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong on BSE with 1,871 stocks advancing as compared with 651 that declined. A total of 57 shares remained unchanged.
From the 30 share Sensex pack 22 stocks rose while rest fell.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 0.59% to Rs 1,672.25 after the company started pumping gas from the Krishna Godavari (KG) last week which is estimated to add close to $2 billion to the company's profit at peak production levels. However, the stock came off the day's high of Rs 1,718.
Meanwhile, as per reports Reliance Industries (RIL) and ONGC Videsh, the overseas arm of Oil and Natural Gas Corporation plan to jointly bid for oil blocks in Venezuela, and may also include Indian Oil Corporation in the alliance.
India's largest exploration firm by sales ONGC rose 1.76% and private sector oil exploration firm Cairn India rose 1.33% as crude oil prices surged nearly 2% in Asian electronic trades on Monday, 6 April 2009. Rise in crude oil prices would result in higher realizations from crude sales for the oil exploration firm.
Banking stocks rose on hopes lower interest rates may boost lending growth. The stocks were volatile. India's largest private sector bank by net profit ICICI Bank rose 4% to Rs 374.65. The stock hit the high of Rs 380.50 and the low of Rs 363.05. Its American depository receipts (ADR) rose 1.39% on Friday, 3 April 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 2.73% to Rs 1,062.95. The stock hit the high of Rs 1,074.80 and the low of Rs 1039.50. Its ADR rose 2.63% on Friday. 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 fell 1.43% to Rs 1,128.95. It hit the high of Rs 1,199 and a low of Rs 1,113.15. 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 7.37%. It announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective 25 March 2009.
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. Lupin, Cipla, Ranbaxy Laboratories, Sterling Biotech fell by between 0.35% to 4.41%.
Some FMCG shares fell as a strong recovery in equity markets forced investors to dump these so called defensive stocks. ITC, Hindustan Unilever, Marico, Dabur India and United Spirits fell by between 0.16% to 4.38%.
Outsourcing focussed IT stocks reversed early gains on a stronger rupee. IT stocks had surged in the past few days 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 fell 0.42% to Rs 1,414.45. Its ADR rose 1.57% on Friday.
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 fell 0.3% to Rs 269.45. Its ADR rose 5.76% on Friday. 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 0.18%. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.
India's fifth largest IT firm by sales HCL Technologies spurted 5.01% on reports the firm has bagged a five-year IT services contract worth close to $170 million or Rs 848 crore from US-based Microsoft Corporation.
Satyam Computer Services jumped 13.16% on reports private equity investor Wilbur Ross and Larsen & Toubro may reportedly jointly bid for a controlling stake in Satyam.
A stronger rupee affects operating profit of IT firms negatively as they earn most of their revenues from exports.
Cement shares fell on reports the government has warned cement makers that it will not extend any stimulus package to the industry unless they reduce the price of the building material. ACC, Ambuja Cements, Grasim Industries, Ultratech Cement fell by between 1.82% to 3.14%.
The warning followed the three rounds of price increases by cement companies in the past two months despite the government's move to contain its price by reducing excise duty on cement.
Indian largest engineering and construction firm by sales Larsen & Toubro rose 7.4%. It had recently won two orders worth a total of Rs 1,344 crore ($265 million) from refiner Mangalore Refinery and Petrochemicals. It had also bagged two orders aggregating Rs 1,143 crore ($227 million) from Tata Steel.
India's largest equipment maker by sales Bharat Heavy Electricals was flat at Rs 1,531.90. It had reported a 6.06% rise in net profit to Rs 3,039 crore on 28.52% rise in turnover to Rs 27,505 crore for the financial year ended March 2009 over financial year ended March 2008, as per tentative figures. The company announced the provisional figures during trading hours on Thursday, 2 April 2009.
Other capital goods stocks, BEML, Praj Industries, Thermax, ABB, rose by between 0.53% to 8.18%.
Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. DLF, Indiabulls Real Estate and Housing & Development Infrastructure rose by between 3.07% to 8.91%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
India's largest steel maker by sales Tata Steel rose 4.89% on reports its output grew 12.6% to 5.6 million tonnes in the financial year ended March 2009 over the financial year ended March 2008.
JSW Steel rose 2.35% after its steel output grew 11 % to 1.1 million tonnes in Q4 March 2009 over Q4 March 2008.
Other metal stocks, Hindustan Zinc, Steel Authority of India, Sterlite Industries, National Aluminum Company and Hindalco Industries, rose by between 0.2% to 6.39%, on firm base metal price on the London Metal Exchange.
India's largest commercial vehicle maker by sales Tata Motors rose 3.05% on improved sales in the month just gone by. Tata Motors' domestic sales fell 13% to 52,686 units in March 2009 over March 2008. Nevertheless, the domestic sales rose 24% in March 2009 over February 2009.
India's largest commercial vehicle maker by sales Ashok Leyland fell 1.86% after its total vehicle sales fell 52% to 5,112 units in March 2009 over March 2008.
India's largest car maker by sales Maruti Suzuki India rose 0.55%. The total vehicle sales rose 21.9% to 85,669 units in March 2009 over March 2008, the company said last week.
India's largest tractor maker by sales Mahindra & Mahindra rose 14.26%. The company, last week, 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 rose 3.01%. The company, last week, reported 10.2% rise sales to 3.53 lakh unit in March 2009 over March 2008.
Satyam Computer Services clocked the highest volume of 2.84 crore shares on BSE. Suzlon Energy (2.23 crore shares), Reliance Natural Resources (2.02 crore shares), Cals Refineries (1.39 crore shares) and Essar Oil (1.32 crore shares) were the other volume toppers in that order.
Reliance Infrastructure clocked the highest turnover of Rs 281.13 crore on BSE. Reliance Industries (Rs 242.26 crore), Reliance Capital (Rs 163.73 crore), ICICI Bank (Rs 158.42 crore) and Essar Oil (Rs 144.26 crore) were the other turnover toppers in that order.
Asian stocks open in green
Asian stocks gained, led by finance and mining companies, after US Federal Reserve chairman Ben S. Bernanke said policies to unfreeze credit markets are working.
Mizuho Financial Group gained almost 3% Tokyo. Panasonic Corp advanced almost 4.5% after Nomura Holdings raised the shares to buy.
Japanese benchmark index Nikkei gained 224.01 points, or 2.56%, to trade at 8,973.85.
Hong Kong`s Hang Seng index advanced 375.15 points, or 2.58%, to trade at 14,920.84.
Taiwan`s Taiex index climbed 48.98 points, or 0.89%, to trade at 5,578.61.
South Korea`s Kospi index went up 29.15 points, or 2.27%, to trade at 1,312.90.
Singapore`s Straits Times rose 35.30 points, or 1.94%, to trade at 1,856.17. (7.45 a.m., IST).
China`s Shanghai Composite is not trading today.
Pre Session Commentary - Apr 6 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened with phenomenal gains. The domestic markets may try to cope with the other markets as it was closed on Friday. There are enough buying sentiments prevailing in other markets which the domestic markets are most likely to track further. Besides the positive trend one may witness some profit booking pressures as the domestic markets have had witnessed consecutive rally in the last week.
On Thursday, the domestic markets closed with exemplary gains. The opening came with bang as anticipated on the back of Bull Run sentiments across other Asian markets. The day’s further trade carried the buying sentiments till the end and bench mark indices gained news highs for the year 2009. The G-20 meet at London has finally cast the magic spell by planning to commit $1 trillion to revive the global economy. This has brought huge relief to the investors across the globe. The buying sentiments were very strong and the stocks at broader level rallied. The European markets also helped the domestic sentiments as there was phenomenal bull trend. Sectors like Realty, Metal, Oil & Gas and CG exuded huge buying interest with gains of 9.13%, 6.85%, 5.73% and 5.32% respectively. During the session we expect the markets to be trading positive with an essence of mild volatility.
The BSE Sensex closed with gain of 446.84 points at 10,348.83 and NSE Nifty ended with gain of 150.70 points at 3,211.05. BSE Mid Caps and BSE Small Caps ended with gains of 113.62 points and 97.05 points at 3,125.42 and 3,436.92 respectively. The BSE Sensex touched intraday high of 10,432.31 and intraday low of 10,107.25.
On Friday, the US Markets closed positive despite bad news from the Labour Department. The latest job report from the Labour department could not suppress the buying sentiments amidst investors. The financial stocks rallied on the late trading session and simultaneously helped the broader markets gain. The latest data form the Labour departments shows 6,63,000 jobs were slashed in the month of March thus taking the unemployment rate to 8.5% from 8.1%. On the European markets the Royal bank of Scotland has indicated that it would take considerable cost saving measures and would also declare dividend payments. This news also helped financial stocks to trade in momentum. The US light crude oil for May delivery declined by 0.4% to settle at $52.44 a barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed high by 39.51 points at 8,017.59 the NASDAQ Composite (RIXF) index inclined by 19.24 points to close at 1,621.87 and the S&P 500 (SPX) inclined by 8.12 points to close at 842.50.
Today major stock markets in Asia are trading positive. Shanghai composite is low by 5.51 points at 2,419.78. Hang Seng is trading up by 411.68 points at 14,957.37 followed by Japan''s Nikkei which is up by 162.71 points at 8,912.55, Strait Times is up by 34.83 points at 1,855.70. While Taiwan Weighted is up with gains of 78.60 points at 5,608.23 and Seoul Composite points is also up by 29.91 points at 1,313.66 respectively.
Indian ADRs ended higher. In technology sector, Infosys ended up by 1.57% along with Satyam by 10%. Further, Wipro gained 5.76% while Patni Computers closed lower by 6.83%. In banking sector ICICI Bank and HDFC Bank gained 1.39% and 2.363 respectively. However, in telecommunication sector Tata Communication and MTNL advanced by 0.69% and 0.89% respectively.
The FIIs on Thursday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 1,695.20 Crore and gross debt purchased stood at Rs 16.30 Crore, while the gross equity sold stood at Rs 1,460.40 Crore and gross debt sold stood at Rs. 0.00 Crore. Therefore, the net investment of equity and debt reported were Rs (234.80) Crore and Rs (16.30) Crore respectively.
On Friday, the Currency market was closed due to local holiday.
On BSE, total number of shares traded were 45.07 Crore and total turnover stood at Rs 4,926.47 Crore. On NSE, total number of shares traded was 102.85 Crore and total turnover was Rs 14,600.59 Crore.
Top traded volumes on NSE Nifty – Unitech with 54119836 shares, Suzlon Energy with 53582426 shares, ICICI Bank with 23525738 shares, DLF with 22217784 shares followed by SAIL with 19093647 shares.
On NSE Future and Options, total number of contracts traded in index futures was 854491 with a total turnover of Rs 13,031.51 Crore. Along with this total number of contracts traded in stock futures were 512193 with a total turnover of Rs 16,794.77 Crore. Total numbers of contracts for index options were 1551701 with a total turnover of Rs 24,745.58 Crore and total numbers of contracts for stock options were 53804 and notional turnover was Rs 1,919.65 Crore.
Today, Nifty would have a support at 3,195 and resistance at 3,289 and BSE Sensex has support at 10,280 and resistance at 10,505.
US stocks manage a late turnaround
Wall Street registers its fourth consecutive weekly gains
US market witnessed substantial gains for the week that ended on Friday, 03 April, 2009. Stocks kicked off the week on a slow note and indices suffered losses during the first day of the week on Monday, 30 March, 2009. But thereafter, stocks picked up some momentum. Even on the last day of the week, Friday, 03 April, 2009, stocks managed a late turnaround and finished in the green ultimately after staying the red for the entire day.
Nevertheless, stocks witnessed strong gains for the week. The Dow Jones Industrial Average gained 241 points (3.1%) for the week to end at 8,017.59. Tech - heavy Nasdaq gained 76.67 (5%) to end at 1,621.87. S&P 500 gained 26.56 (3.3%) to end at 842.5.
Earlier during the week, 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 and stocks lingered in the red for the entire day. Gloom also spread over auto sector after GM chairman was asked to quit by President Obama.
But the turnaround began on Tuesday, 31 March, 2009, the last day of the month/quarter, despite weaker-than-expected economic data. Strength in the Financial sector led the broader market to gains, though late-session profit taking cut them in half.
Market managed to rally on that day despite a few disappointing economic reports. Specifically, the S&P/CaseShiller Home Price Index declined 19.0% year/year in January, worse than the -18.6% consensus estimate. Consumer Confidence came in at 26 in March, below the 28 consensus. Finally, Chicago PMI came in at 31.4 in March, below the 34.3 consensus.
Thursday, 02 April, 2009 proved to be the biggest day of the week. All ten major sectors in the S&P closed higher, led by Industrials and Consumer Discretionary sectors.
In the US market on Friday, 03 April, 2009, stocks started the day in the red and ended the day in the green. In fact, the indices climbed up in the green in the final half hour of trading. After being 60 points down earlier during the day, The Dow Jones Industrial Average ended higher by 39 points at 8,017. The Nasdaq Composite Index, ended higher by 19 points at 1,621. S&P 500 ended higher by 8 points at 842.
Among major economic report for the day, the Labor Department reported that the total number of jobs lost since the recession began climbed to 5.1 million. As per the report, U.S. nonfarm payrolls fell by 663,000 in March, while the unemployment rate jumped to a 26-year high 8.5% from 8.1%, as expected.
A separate report showed that U.S. nonmanufacturing sectors contracted at a faster pace in March. The ISM non-manufacturing index fell to 40.8% in March from 41.6% in February. Readings below 50% indicate that more firms are contracting than expanding.
The business activity index rose to 44.1% from 40.2%. New orders fell to 38.8% from 40.7%. The employment index fell to 32.3% from 37.3%. The prices index plunged to 39.1% from 48.1%.
Oil prices fell on Friday, 03 April, 2009. Prices fell as Friday's job loss data once again raised concerns about the overall health of the US economy questioning the demand for energy in the coming months. For the week, oil ended marginally higher. On Friday, crude-oil futures for light sweet crude for May delivery closed at $52.51/barrel (lower by $0.13 or 0.2%) on the New York Mercantile Exchange. For the week, crude ended higher by 0.3%.
Market may extend gains
Firm Asian stocks, resumption of buying by foreign funds and steps taken by the G20 leaders to revive the global economy may help Indian stocks extend recent solid gains. Expectations of a further easing of the monetary policy by the Reserve Bank of India (RBI) may support the market. Indian stocks have risen sharply in the past few days as a part of a solid rally in global stocks triggered by hopes the worst of the global economic recession may be over.
Foreign funds have resumed buying of Indian stocks. As per the provisional data foreign funds bought shares worth a net Rs 691.56 crore on Thursday, 2 April 2009. Foreign institutional investors (FIIs) bought shares worth a net Rs 234.80 crore on Wednesday, 1 April 2009. The resumption of buying by FIIs followed sales of a substantial Rs 1266.70 crore in three trading sessions from 27 March 2009 to 31 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.
However, a recent sharp volatility in the rupee may dissuade fresh buying by foreign funds. The rupee has bounced back after hit a record low beyond 52 per dollar early last month.
During the week ended 1 April 2009, emerging market equity funds witnessed net inflows of $1.2 billion, according to the US-based EPFR Global, which provides fund flows and asset allocation data to financial institutions. It seems that emerging markets have once again become attractive investment destinations, promising better growth prospects, says EPFR Global managing director Brad Durham.
In London, G20 leaders on 2 April 2009 agreed to provide a total of $1 trillion in resources to the International Monetary Fund (IMF) and other international institutions in an effort to confront a deep global economic downturn. The figure includes an agreement to boost the IMF's lending resources to $750 billion from the current level of $250 billion, the G20 leaders said in a joint statement issued at the end of a two-day emergency summit.
The G20 also agreed to provide $250 billion in trade-finance credits to combat a steep slump in global trade flows. "The global crisis is hitting emerging market and poor countries hard," said Dominique Strauss-Kahn, the IMF's managing director, in a statement. The G20 leaders have sent a powerful signal that the international community is committed to support these countries, including by ensuring that the IMF has the resources available, he said.
Citigroup Inc. economists Don Hanna and Jurgen Michels called the summit agreement “a boon to emerging markets†in a note to clients. The G-20 said they would couple the financing moves with steps to give emerging economic powerhouses such as China, India and Brazil a greater say in how the IMF is run.
Mexico said Wednesday, 1 April 2009, it will seek $47 billion from the IMF under the Washington-based lender's new Flexible Credit Line, which allows some countries to borrow money with no conditions.
Closer home, expectations of a further easing of the monetary policy by the Reserve Bank of India (RBI) remain with inflation near zero. Inflation as measured by the wholesale price index rose 0.31% in the 12 months to 21 March 2009, marginally above the previous week's annual rise of 0.27%, data released by the government during trading hours on 2 April 2009 showed.
Gains may continue
The market is likely to see further action on the back of a firm US markets and over 1% gains in majority of the Asian indices in the prevailing trades. Surging FII fund inflows coupled with firm economy outlook also may help the market advance further. Among the key local indices, the Nifty has a strong support between 3170-3120 range, while on the upside the index could test higher level in the 3250-3300 range. The Sensex has a likely support at 10200 and may face resistance at 10500.
US indices posted gains for the on Friday, with the Dow Jones added 40 points at 8018, the Nasdaq was up 19 points at 1622.
Indian ADRs witnessed strong buying support on US bourses. Satyam notched up significant gains and soared 10% . The other Indian floats, Wipro, Infosys, ICICI Bank, HDFC Bank, MTNL and Dr Reddy surged over 0.50-5% each. However, Rediff and Patni Computers were down around 4-6% each.
Crude oil prices slipped marginally. The US light crude oil for May series declined by 13 cents at $52.51 a barrel. In the commodity space, the Comex gold for June delivery lost by $11.60 to settle at $897.30 an ounce.
Daily News Roundup - Apr 6 2009
Reliance Industries, ONGC plan to jointly bid for oil exploration and production blocks in Venezuela.(Mint)
Hinduja Group is learnt to have opened talks with Wockhardt to acquire a majority stake in its healthcare arm, Wockhardt Hospitals.(FE)
Satyam board has extended the deadline to submit technical and financial bids to April 13 from April 9.(BL)
Suzlon is likely to seek time to pay Martifer for REpower stake.(BL)
GSPC makes a huge discovery of gas in the KG-21 well located on the western side of Deendayal west block in the KG Basin. (BS)
Unitech to clear Rs10bn debt burden through sale of assets, issuing convertible instruments and pre-sale of apartments. (BS)
Wockhardt may not be able to sell head office in Mumbai’s Bandra Kurla Complex. (BS)
Fitch Ratings downgrades the long-term foreign currency Issuer Default Rating for Tata Steel to 'BB+' from 'BBB-'.(BS)
Chinese, European firms approach Reliance Industries for hiring rig. (ET)
SC to hear plea of the Commissioner of Customs regarding evasion of import duty of Rs1.74bn against Reliance Industries in August. (ET)
Apollo Hospitals looking to acquire Wockhardt Hospitals provided it gets a majority stake. (ET)
Power Grid Corp plans to put up its projects for laying new transmission networks-worth Rs100-150bn-for competitive bidding.(DNA)
Sanofi Aventis's plans to acquire majority stake in Piramal Healthcare has fallen through due to differences over valuation. (ET)
Jaguar Land Rover is likely to get approval for a loan of about Rs20bn from the European Investment Bank on April 7. (BS)
Ambuja Cements says project cost would go up by 10% from earlier estimates. (ET)
HUL cuts prices by up to 20%.(TOI)
PE fund Duet set its sights on Parsvnath Developers’ hospitality projects.(TOI)
Satyam Computer modifies the bidding process to ensure if no bid comes within at least 90% of the highest bid the highest bidder would be declared the final buyer. (BS)
Pantaloon in talks for stake sale in subsidiaries like Big Bazaar and Food Bazaar. (BS)
Kingfisher Airlines, Jet Airways and Air India starts the financial year with accumulated dues of Rs40bn to oil companies and airports. (BS)
Bosch to invest Rs2.5bn to expand India IT operations. (BS)
Ashok Leyland reported a fall of 52.2% in commercial vehicle sales at 5,112 units in March this year compared to same month in 2008. (BS)
Government has received US$218,960 as first installment of profit-share generated from sale of crude oil from Reliance’s D6 block in the KG basin since mid-September.(ET)
Maruti will launch its sixth global car, ‘Ritz’ in May, priced between Rs0.4-0.5mn.(ET)
L&T is looking to exit from the infrastructure projects in which it holds minority stake, but open to bid in consortium with less than 50% holding in large and complex projects like metro. (FE)
Neyveli Lignite plans to set up a new company NLC Videsh Ltd. to handle substantial quantity of coal required for its coal-fired thermal power stations. (FE)
Bank of India plans to offer a three-month moratorium on interest and principal payment to loans for the purchase of Tata Nano. (ET)
IFC has approved US$12mn loan for the second phase of expansion of TVS Motor Company in Indonesia.(FE)
Bajaj Auto claims that it has won a patent case against rival TVS Motor Company over the ‘ExhausTEC’ technology. (FE)
Aircel will invest ~Rs11bn for its foray into the Mumbai cellular circle. (ET)
Domestic airlines such as SpiceJet, Kingfisher Airlines, Jet Airways, and Paramount Airways will increase airfares by 5-8% per ticket from mid-April. (ET)
Tata Motors postpones plans for an overseas equity issue and sale of investments to repay the US$3bn bridge loan it took in June last year. (BS)
Trichy and Ranipet units of BHEL to invest in capacity expansion and new lines. (BS)
The proposed Rs163bn second aluminium and captive power complex of NALCO in Orissa has been pushed into uncertainty with the government asking the company to shift the venue of the project. (BS)
HCL Technology bags US$170mn contract from Microsoft. (ET)
L&T, Tech Mahindra, Wilbur Ross and Cognizant reach the final stages to acquire Satyam. (ET)
Aircel in talks to acquire Loop Mobile. (ET)
Reliance Infrastructure’s Dahanu Thermal Power Station to expand its generation capacity from 500MW to 1,700W. (ET)
3iInfotech to triple its network of IT Kiosks in rural areas to over 12,000 by the year end. (ET)
NTPC to secure gas supplies from Nigeria for its fuel-starved power stations haven’t yielded results. (ET)
SBI plans to raise Rs410bn through equities and debt in the next two years.(FE)
Gitanjali Group plans 30 Gitanjali Jewels outlets across the country in the next four months. (BS)
Fitch downgrades Wockhardt's long-term rating. (BL)
UCO Bank receives capital infusion worth Rs4.5bn from the Government. (BL)
Government plans to restructure the priority list of power plants awaiting natural gas supply from Reliance Industries D-6 block in Krishna-Godavari basin. (ET)
Colgate-Palmolive raises prices of some brands by at least 4%.(Mint)
Forex reserves declined by US1.5$bn to US$252bn in the week ended March 27.(BL)
Government not to allow import of refined sugar at zero duty. (BS)
Rates of seven farm products rule below support prices.(BL)
Prime Minister Panel lowers FY09 GDP forecast to 6.5-7% from earlier 7.1%.(TOI)
Private airport operators asked to pay Rs4.2bn as compensation.(Mint)
Investment plans for pension schemes to be unveiled by the middle of this month.(TOI)
Government suspended a key accounting norm on forex losses for the period starting December 7, 2006 to March 31, 2011. (ET)
Banks may have to shell out 50% higher deposit insurance premium to get deposits up to Rs0.1mn covered. (ET).
India will launch its biggest-ever auction of oil and gas exploration blocks, Nelp-VIII on April 09, 2009. (FE)
Indian railways reported a 5% rise in freight loading in FY09. (ET)
More frill for the thrill!
The only thrill worthwhile is the one that comes from making something out of yourself.
Risk aversion seems to be suddenly on the rise, putting the bears on the defensive for the first time in more than a year. So strong is the momentum that all bad news is surprisingly getting discounted. The thrill of living on the edge need not be part of your portfolio though.
The current upsurge stems mainly from optimism about the latest efforts to unfreeze the US credit markets. A few encouraging economic reports from across the globe have added fuel to the fire.
The positive effects of the G20 announcement to commit US$1 trillion to revive global economy are already visible, with Asian markets smartly up. We expect the Indian market to open firm as well. But, a truncated trading week coupled with the anxiety over earnings and elections might just halt the bulls.
In a nutshell, the market will continue to take direction from the global trend. Technically, the near-term outlook looks promising. If the Nifty stays above 3150 for a few more days, the next key target is 3250. The 200 DMA stands at 3450.
FIIs were net buyers in the cash segment on Thursday at Rs6.92bn while the local institutions were net buyers at Rs2.55bn. In the F&O segment, the foreign funds were net buyers at Rs18.84bn. On Wednesday, the foreign funds were net buyers at Rs2.35mn in the cash segment. Mutual Funds were net buyers of Rs161mn on the same day.
Nitco Tiles will launch a new tile category for the first time in India - announcement later in the day. HCL Tech could gain amid reports that it has bagged a five-year order from Microsoft worth US$170mn.
Piramal Healthcare will be in action after a business daily reported that its talks with Sanofi Aventis for a stake sale have fallen through due to differences over valuation.
Cement companies are likely to attract attention amid a fresh war of words with the Government over the recent price increases. Oswal Chemicals is another stock to keep an eye on as it is reportedly looking for coal mines in Indonesia.
US stocks ended higher on Friday after a choppy session, as investors largely ignored the March jobs report and chose to focus on positives like the US$1 trillion booster from the Group of 20 (G20) nations.
The market extended the recent rally to a fourth consecutive week after Federal Reserve Chairman Ben S. Bernanke said that programs to revive lending were working and Research In Motions (RIM) announced strong results.
The Dow Jones Industrial Average gained almost 40 points, or 0.5%, to 8,017.59. The Standard & Poor's index added 8 points or 1%, to 842.50 and the Nasdaq Composite index rose 19 points, or 1.2%, to 1,621.87. The Dow and the S&P 500 closed at their highest levels since Feb. 9.
US shares have staged a strong comeback since hitting 12-year lows on March 9. All three major indices have risen by at least 20%. For the four-week period ended on Friday, the Dow is up 21.5%, making it the blue-chip indicator's best four-week run since May 1933, when it gained 31%.
This is the longest winning streak for the S&P 500 index since the bear market began in October 2007. The S&P 500 has surged by 25% since sinking to a 12- year low of 676.53 on March 9. The S&P 500 gained 3.3% on the week while the Dow added 3.1%.
Meanwhile, the VIX, which tracks the cost of using options to protect against losses in the S&P 500, decreased 5.6% to close below 40 for the first time since January.
Employment is a lagging economic indicator and is usually the last to recover. That is perhaps the reason why Wall Street investors didn't react strongly to the day's big economic report, which showed unemployment rate climbing to a 25-year high.
US companies cut 663,000 jobs from their payrolls in March, after cutting a revised 651,000 in the previous month. Economists had expected 650,000 job cuts. The unemployment rate, generated by a separate survey, rose to 8.5% from 8.1% in February, in line with estimates.
In other economic news, the Institute for Supply Management released its services sector index for March. The index fell to 40.8 from 41.6 in the previous month. Economists thought it would rise to 42.
Benchmark indexes turned higher around noon after Bernanke, speaking in Charlotte, North Carolina, welcomed a decline in home-loan rates in the wake of the Fed’s purchases of mortgage securities and said that the drop may improve the housing market.
He also discussed the Fed's balance sheet and reiterated that the central bank would use every available tool to help the world's largest economy.
In London, leaders of the world's 20 largest economies (G20) pledged over US$1 trillion to boost the International Monetary Fund (IMF) and agreed to better monitor the global financial system.
Following the April 2 summit, G20 policy makers proposed a regulatory blueprint that places stricter limits on hedge funds and other financiers, while pledging to triple the resources of the IMF and to give China and other developing economies a greater say in the way the world economy is run.
IBM and Sun Microsystems are in the late stages of a deal whereby the IT services giant will acquire its smaller rival for US$9.55 per share, according to published reports. That is about US$1 less than the figure previously floating around. IBM shares gained 1.4% and Sun shares rose 3.4%.
Research in Motion (RIM) reported higher quarterly earnings that beat estimates late on Thursday. The BlackBerry maker also forecast first-quarter profit that are above analysts' current estimates. The stock jumped 20.8% and was among the Nasdaq's most-actively traded.
Treasury prices tumbled, raising the yield on the benchmark 10-year note to 2.89% from 2.77% on Thursday.
Lending rates mostly dropped. The 3-month Libor rate dipped to 1.16% from 1.17% on Thursday. The overnight Libor rate fell to 0.27% from 0.29% on Thursday. 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 fell 13 cents to settle at US$52.51 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery fell US$11.60 to settle at US$897.30 an ounce.
Indian markets extended its winning streak to third straight trading session with the NSE Nifty index ending above the 3200 mark for the first time since October 21, 2008. The BSE benchmark Sensex also ended above the 10,300 level.
The rally was led by Realty, Metals, Oil & Gas, Capital Goods and the Banking stocks. Also the second rung stocks participated in the upswing. However, the FMCG counters were under some pressure. Finally, the BSE Sensex advanced 193 points to close at 9,901 and the NSE Nifty was up 39 points at 3,060.
Among the 30-components of Sensex, 29 stocks ended in positive terrain and only Hindustan Unilever ended in the red. Among the top gainers were DLF, JP Associates, Tata Motors, RCom, ONGC and Hindalco.
Reliance Industries commenced production of gas from the Dhirubhai 1 and 3 discoveries of the KG-D6 block in the KG Basin, located off the East Coast of India, in the Bay of Bengal.
The stock advanced by 6% to Rs1674 after hitting an intra-day high of Rs1678 and a low of Rs1602 recording volumes of over 1.7mn shares on BSE.
Shares of Maruti Suzuki erased early gains and slipped lower by 1.7% to end at Rs780 recording volumes of over 0.2mn shares on BSE. The stock rose to hit an intra-day high of Rs832 as the company’s March sales rose 22% to 85,669 units as compared to 70,296 units in the same month last year.
The company’s local sales rose 14.6% to 73,855 units in the month of March and exports rose 101% to 11,814 units as compared to 5,875 units in the same month previous year.
Shares of Tata Motors rallied by over 13% to Rs202 after hitting an intra-day high of Rs207 and a low of Rs183 and recorded volumes of over 3.8mn shares on BSE.
The company’s sales of commercial vehicles in March 2009 in the domestic market were 29,006 nos., 24% higher than that in February 2009 but 19% lower than 35,993 vehicles sold in March 2008. M&HCV sales at 12,333 nos. reflect a 40% growth over February 2009, but 40% lower than March 2008. LCV sales at 16,673 nos. are 9% higher than March 2008.
The bulls are sweating gains but show no signs of tiring as yet. The problem is no one knows when the direction will change. Ride the upside and use it to lighten positions gradually. In the coming truncated week, unless the swings are wild on either side, retail investors may give the markets a near miss. Any sharp spurt could be used to book profits.
Bullion metals turn pale
Optimism about overcoming recession pull precious metals lower
Bullion metal ended lower on Friday, 03 April, 2009. Prices fell as traders remained a bit optimist about the overall recovery of the global recession thereby decreasing the appeal of the precious metal.
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 Friday, Comex Gold for April delivery fell $11.8 (1.3%) to close at $895.6 an ounce on the New York Mercantile Exchange. For the week, gold ended lower by 3%. Year to date, gold prices are higher by 10%.
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 Friday, Comex silver futures for May delivery fell 24 cents (2.2%) to end at $12.975 an ounce. In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 15% this year. For 2008, silver had lost 24%.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Crude tumbles
Prices register marginal gains for the week
Oil prices fell on Friday, 03 April, 2009. Prices fell as Friday's job loss data once again raised concerns about the overall health of the US economy questioning the demand for energy in the coming months. For the week, oil ended marginally higher.
On Friday, crude-oil futures for light sweet crude for May delivery closed at $52.51/barrel (lower by $0.13 or 0.2%) on the New York Mercantile Exchange. For the week, crude ended higher by 0.3%.
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 20%. On a yearly basis, crude prices are lower by 50%.
On Friday, the Labor Department reported that the total number of jobs lost since the recession began climbed to 5.1 million. As per the report, U.S. nonfarm payrolls fell by 663,000 in March, while the unemployment rate jumped to a 26-year high 8.5% from 8.1%, as expected.
Earlier during the week, the energy department reported that crude inventories rose 2.8 million barrels, staying at the highest level since July 1993. Crude inventories, the delivery point for Nymex oil futures, fell 800,000 barrels to 30.9 million barrels.
The report also said that gasoline inventories increased 2.2 million barrels in the week ended 27 March, 2009. The EIA also reported an increase of 300,000 barrels in distillate stockpiles, which include diesel and heating oil.
EIA had also reported that total demand for petroleum demand over the last four-week period averaged 18.9 million barrels a day, down by 4.4% compared to the similar period last year. Among them, motor gasoline demand averaged 9 million barrels a day, down by 0.2% from a year ago, while distillate fuel demand slumped by 9.1%. U.S. refineries operated at 81.7% of their operable capacity last week, down from the 82% a week ago,
Also at the Nymex on Friday, May reformulated gasoline gained 2.26 cents, or 1.5%, to $1.4924 a gallon and May heating oil rose slightly to $1.446 a gallon.
May natural gas futures rose 0.5% to $3.801 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex
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