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Thursday, April 09, 2009
BSE Bulk Deals to Watch - Apr 9 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
9/4/2009 532919 ALLIED COMP KANJI PATEL S 2296100 0.37
9/4/2009 532114 AREALTY HS FII INVESTMENTS LIMITED B 1515000 16.45
9/4/2009 532114 AREALTY SANDEEP SETHI S 1943421 16.55
9/4/2009 590059 BIHAR TUBES ARION COMMERCIAL PRIVATE LIMITED B 110000 40.02
9/4/2009 590059 BIHAR TUBES RAJASTHAN GLOBAL SECURITIES LTD B 539000 40.00
9/4/2009 590059 BIHAR TUBES MAVI INVESTMENT FUND LIMITED S 190000 41.68
9/4/2009 590059 BIHAR TUBES NISHWET MANAGEMENT SERVICES PVT LTD S 205000 40.00
9/4/2009 590059 BIHAR TUBES NIRMAN MANAGEMENT SERVICES PVT LTD S 300000 40.00
9/4/2009 511710 CUBI FIN SER DEEPTI AGGARWAL B 18450 10.51
9/4/2009 531270 DAZZEL CONFI DEEPAK GAMBHIR B 40000 3.72
9/4/2009 531270 DAZZEL CONFI YOGESH GAMBHIR B 40000 3.72
9/4/2009 504008 EMCO LTD RELIANCE CAPITAL LIMITED B 367000 49.00
9/4/2009 504008 EMCO LTD RELIANCE INFRASTRUCTURE AND CONSULTANTS LIMITED S 366365 49.00
9/4/2009 530407 EPIC ENERGY JAGDISH KUMAR BANGA S 35000 27.87
9/4/2009 532876 EVERONN SYS NETEQUITY VENTURES PRIVATE LIMITED S 76067 162.71
9/4/2009 532818 EVINIX ELARA INDIA OPPORTUNITIES FUND LIMITED S 1000000 2.40
9/4/2009 523277 G V FILMS LT CREDIT SUISSE SINGAPORE LIMITED S 2200000 1.13
9/4/2009 532947 IRB INFRA DEUTSCHE SECURITIES MAURITIUS LIMITED S 3052005 100.12
9/4/2009 532081 K SERA SERA BASMATI SECURITIES PVT. LTD. B 408624 10.83
9/4/2009 532081 K SERA SERA S V ENTERPRISES B 557058 10.81
9/4/2009 532081 K SERA SERA BASMATI SECURITIES PVT. LTD. S 435924 10.61
9/4/2009 532081 K SERA SERA S V ENTERPRISES S 557058 10.60
9/4/2009 517518 LLOYD ELE EN THE EMM UMBRELLA FUNDS EMERGING MARKETS SOUTH ASIAN STARS FUND S 224000 26.45
9/4/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC CHANDARANA INTERMEDIARIES BROKERS P. LTD B 160246 822.45
9/4/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC EUREKA STOCK AND SHARE BROKING SERVICES LIMITED B 83717 801.09
9/4/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC CHANDARANA INTERMEDIARIES BROKERS P. LTD S 160246 823.79
9/4/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC EUREKA STOCK AND SHARE BROKING SERVICES LIMITED S 83717 802.26
9/4/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PVT LTD B 37503 43.77
9/4/2009 512048 SPLASH MEDIA KIRIT V DAVE S 26500 84.98
9/4/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 66500 20.43
9/4/2009 526133 SUPERTEX IND DANISH MOHMEDALI MERCHANT S 75000 21.52
9/4/2009 507747 TTK HEALTHCA* TTK HEALTHCARE BUYBACK OF EQUITY SHARES ACCOUNT B 189444 100.49
9/4/2009 507747 TTK HEALTHCA* UNIFI FINANCIAL P LTD S 100640 100.00
9/4/2009 507747 TTK HEALTHCA* ESDOTCOM SSS P LTD S 64012 100.00
9/4/2009 531874 VENUS VENT MANOJ CHHAGANLAL RATHOD HUF B 30000 32.60
9/4/2009 531874 VENUS VENT VIPUL SHAH S 75000 32.72
9/4/2009 531874 VENUS VENT MANOJ CHHAGANLAL RATHOD HUF S 30000 32.74
NSE Bulk Deal Watch - Apr 9 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
09-APR-2009,ALCHEM,Alchemist Ltd,HS FII INVESTMENTS LTD,BUY,236097,51.17,-
09-APR-2009,APTECHT,Aptech Limited,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,BUY,235019,110.84,-
09-APR-2009,EMCO,Emco Limited,RELIANCE CAPITAL LTD,BUY,350000,49.25,-
09-APR-2009,ESCORTS,Escorts India Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,BUY,653422,45.18,-
09-APR-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,BUY,121110,10.81,-
09-APR-2009,LLOYDELENG,Lloyd Electric & Engg Ltd,SUNDARAM BNP PARIBAS MUTUAL FUND,BUY,236509,26.39,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,A TO Z STOCK TRADE PRIVATE LIMITED,BUY,134982,812.79,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,ADROIT FINANCIAL SERVICES PVT LTD,BUY,220319,809.16,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,AMBIT SECURITIES BROKING PVT. LTD.,BUY,80797,799.42,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,ARCADIA SHARE AND STOCK BROKERS PVT LTD,BUY,257037,816.41,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD,BUY,591713,814.37,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,CHANDARANA INTERMEDIARIES BROKERS P. LTD,BUY,157693,814.62,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,CPR CAPITAL SERVICES LTD.,BUY,77455,838.90,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,DINESH MUNJAL(HUF),BUY,98363,815.44,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,192307,825.70,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,HARBUX SINGH SIDHU,BUY,133192,814.26,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,101123,806.48,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,85618,803.61,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,MANIPUT INVESTMENTS PVT LTD,BUY,165247,808.81,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,115064,803.65,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,NAMAN SECURITIES & FINANCE PVT LTD,BUY,105470,799.95,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,NEPTUNE FINCOT PVT LTD,BUY,117032,799.10,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,P R B SECURITIES PRIVATE LTD,BUY,173731,801.96,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,PRASHANT JAYANTILAL PATEL,BUY,100663,799.88,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,SMC GLOBAL SECURITIES LTD.,BUY,148614,824.82,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,TODI SECURITIES PVT. LTD.,BUY,90937,813.79,-
09-APR-2009,SATYAMCOMP,Satyam Computers Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,4143134,47.16,-
09-APR-2009,SIMPLEX,Simplex Projects Limited,JM FINANCIAL MUTUAL FUND,BUY,295000,53.20,-
09-APR-2009,UNITECH,Unitech Ltd,AMBIT SECURITIES BROKING PVT. LTD.,BUY,8884249,42.35,-
09-APR-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PVT LTD,BUY,1174705,14.38,-
09-APR-2009,ALCHEM,Alchemist Ltd,RAJABABU SAMPATRAO BANDELA,SELL,250000,51.04,-
09-APR-2009,EMCO,Emco Limited,RELIANCE INFRASTRUCTURE AND CONSULTANTS LIMITED,SELL,350000,49.25,-
09-APR-2009,ESCORTS,Escorts India Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,SELL,725286,45.57,-
09-APR-2009,EVINIX,Evinix Accessories Limite,ELARA INDIA OPPORTUNITIES FUND LIMITED,SELL,1000000,2.40,-
09-APR-2009,GLORY,Glory Polyfilms Limited,PATKI KISHORE KRISHN,SELL,115000,32.82,-
09-APR-2009,KALINDEE,Kalindee Rail Nirman (Eng,VNR AND CO,SELL,230000,93.96,-
09-APR-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,SELL,357610,10.60,-
09-APR-2009,LLOYDELENG,Lloyd Electric & Engg Ltd,THE EMM UMBRELLA FUNDS EMERGING MARKETS SOUTH ASIAN STARS FU,SELL,210122,26.40,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,A TO Z STOCK TRADE PRIVATE LIMITED,SELL,134982,813.65,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,ADROIT FINANCIAL SERVICES PVT LTD,SELL,221119,811.43,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,AMBIT SECURITIES BROKING PVT. LTD.,SELL,79197,801.89,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,ARCADIA SHARE AND STOCK BROKERS PVT LTD,SELL,249037,818.76,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD,SELL,591713,815.60,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,CHANDARANA INTERMEDIARIES BROKERS P. LTD,SELL,160093,812.52,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,CPR CAPITAL SERVICES LTD.,SELL,77155,839.96,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,DINESH MUNJAL(HUF),SELL,98363,817.44,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,192307,826.77,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,HARBUX SINGH SIDHU,SELL,133192,817.40,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,97123,801.78,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,85618,803.84,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,MANIPUT INVESTMENTS PVT LTD,SELL,165247,810.24,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,119864,802.98,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,NAMAN SECURITIES & FINANCE PVT LTD,SELL,105722,794.29,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,NEPTUNE FINCOT PVT LTD,SELL,117032,800.84,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,P R B SECURITIES PRIVATE LTD,SELL,173731,802.70,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,PRASHANT JAYANTILAL PATEL,SELL,100663,804.31,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,SMC GLOBAL SECURITIES LTD.,SELL,121414,826.91,-
09-APR-2009,RIIL,Reliance Indl Infra Ltd,TODI SECURITIES PVT. LTD.,SELL,90937,814.41,-
09-APR-2009,SATYAMCOMP,Satyam Computers Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,4143134,47.23,-
09-APR-2009,SIMPLEX,Simplex Projects Limited,JM FINANCIAL MUTUAL FUND,SELL,295000,53.20,-
09-APR-2009,SRF,SRF Ltd.,PRUDENTIAL ICICI PREMIER,SELL,356300,86.04,-
09-APR-2009,UNITECH,Unitech Ltd,AMBIT SECURITIES BROKING PVT. LTD.,SELL,8884249,42.44,-
09-APR-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PVT LTD,SELL,1174705,14.39,-
Post Session Commentary - Apr 9 2009
Indian market managed to recapture slight strength to close highly volatile session in mixed note as BSE Sensex closed in positive territory whereas NSE Nifty on flat note. However, market pared most of its initial gains amid instability on account of incessant bouts of buying and selling. Positive European markets contributed a bit to the recovery. Previously, market remained choppy on weak IIP data that shrank by 1.2% for February 2009. Further, the inflation for week ended March 28 came in at 0.26% against 0.31% a week ago.
The domestic market opened on firm note backed by positive cues for the markets all over the world. The US stock markets on Wednesday ended higher with a late session rally in the market. Higher stocks were helped by news that the Treasury is planning to extend bailout funds to insurers. However, market turned volatile, soon after start and slipped into red on selling pressure witnessed on key stocks. Further, benchmark indices get back their strength and tried to extend gains in afternoon trade. Despite sharp recovery, market once again slipped into negative before ending mixed. BSE Sensex ended above 10,800 level and NSE Nifty above 3,300 mark. From the sectoral front, most of the buying was observed in Reality, Metal, Bank, Consumer Durables and Capital Goods stocks. Mid Cap and Small Cap stocks outperformed the benchmarks today. However, FMCG, Auto, Pharma and PSU stocks witnessed most of selling from these baskets.
Among the Sensex pack 18 stocks ended in green territory and 12 in red. The market breadth indicating the overall health of the market remained positive as 1783 stocks closed in green while 789 stocks closed in red and 78 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 61.52 points at 10,803.86 whereas NSE Nifty ended flat at 3,342.05. BSE Mid Caps and Small Caps closed with gains of 55.76 and 61.58 points at 3,358.35 and 3,767.55 respectively. The BSE Sensex touched intraday high of 10,932.12 and intraday low of 10,655.96.
Gainers from the BSE Sensex pack are Tata Steel (7.71%), JP Associates (7.40%), Reliance Infra (5.66%), ICICI Bank (5.62%), DFL Ltd (4.83%), Sterlite Industries (3.15%), L&T Ltd (2.76%), Grasim Industries (1.84%), SBI (1.47%), Tata Motors (1.28%) and Ranbaxy Lab (1.23%).
Losers from the BSE Sensex pack are HUL (3.26%), M&M Ltd (3.15%), Wipro Ltd (2.80%), ONGC Ltd (2.42%), NTPC Ltd (1.30%), BHEL (1.28%), Maruti Suzuki (1.12%) and RCom (0.73%).
Markets will remain close on Friday (10th April 2009) on account of Good Friday.
The IIP for the month of February, 2009 dipped to a historic low of negative 1.2% from a revised growth of 0.4% in January. However, industrial production grew 9.5% in the same month last year. The January numbers before the revision stood at a negative 0.5%.
The inflation for week ended 28th March 2009, came in at 0.26% against 0.31% a week ago. Drop in Inflation to 30 years low raised expectations of rate cuts by the Reserve Bank of India. Prices of some food items like tea have declined. However, the fuel index remained unchanged at its previous week''s level of 320.9.
On the global markets front the Asian markets which opened before the Indian market, ended in green tracking Wall Street gains overnight. Positive economic data from Japan also boosted investor sentiment as Japanese government has moved closer to a larger-than-expected 15.4 trillion yen ($154 billion) stimulus package of spending. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended higher by 32.49, 426.55, 321.05, 44.55 and 54.28 points at 2,379.88, 14,901.41, 8,916.06, 1,828.51 and 1,316.35 respectively.
European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading higher by 34.90 points at 4,392.82 and in London FTSE 100 is trading up by 4.61 points at. 3,930.19.
The BSE Realty index gained (5.42%) or 104.92 points to close at 2,041.33 on hopes that lower rates will spur housing demand. Gainers are Anat Raj (19.12%), Indiabull Real (7.62%), Unitech Ltd (6.86%), Mahindra Life (4.93%) and DLF Ltd (4.83%).
The BSE Metal index advanced by (3.72%) or 243.94 points at 6,801.56 as index metals rose in London Metal Exchange overnight. Scrips that gained are JSW Steel (13.56%), Jai Corp Ltd (9.97%), Tata Steel (7.71%), Sesa Goa Ltd (5.35%) and Jindal Steel (4.82%).
The BSE Bank index increased by (2.64%) or 129.98 points to close at 5,045.27 on fresh buying. Main gainers are Yes Bank (10.95%), Federal Bank (6.22%), Oriental Bank (5.86%), Karnataka Bank (5.67%) and ICICI Bank (25.62
The BSE Consumer Durables ended up by (2.59%) or 49.20 points at 1,950.52. Gainers are Videocon Ind (19.96%) and Gitanjali GE (4.86%). However, losers are Rajesh Export (3.90 %) and Titan Ind (2.11%) and (0.96%).
The BSE FMCG index decreased by (1.36%) or 28.23 points at 2,050.14 as recovering equity market compelled investors to unload defensive stocks. HUL (3.26%), Britania In (2.73%), ITC Ltd (1.26%), Mraico Ltd (1.14%) and Nestle Ltd (0.47%) ended in negative territory.
The BSE Auto stocks also lost (0.87%) or 28.92 points to close at 3,294.69. Major losers are Bharat Forge (5.63%), Bajaj Auto (4.02%), M&M Ltd (3.15%), Herohonda Motors (1.13%) and Maruti Suzuki (1.12%).
Tata Motors closed up by 1.28%. The much waited Tata Nano car''s booking opens today across the country and this will continue till April 25. The company has joined hands with 18 banks and financial institution for the booking process.
Natco Pharma advanced by 14.80%. The drug manufacturer has collaborated with Mumbai-based Lupin, to jointly commercialize generic equivalents of Lanthanum Carbonate tablets.
Suven Life Sciences gain 20%. The company completed its Phase-I multiple ascending dose study of SUVN-502 in healthy volunteers. SUVN-502 is intended for treatment of Alzheimer''s disease, Schizophrenia and other disorders of memory and cognition like attention deficient hyperactivity disorder and Parkinson.
Unitech increased by 6.86%. The company is planning to sell one expensive land asset to pay off loans and raise cash to fund its business. It is now trying to find buyers by offering deep discounts.
L&T ended up by 2.76% after the company bagged orders worth Rs.605 crore from water and steel sectors in the last quarter of FY09. The company has secured three orders worth Rs. 416 crore from the water sector and another order worth Rs. 189 crore from the steel sector. The metallurgical, material handling and water operating units of the company’s construction division would be executing these orders.
Market may extend gains on buying by foreign funds
Buying by foreign funds and expectations of a further easing of the monetary policy by the central bank may help domestic bourses extend recent solid gains. The Q4 March 2009 results of India Inc would start trickling in soon and investors
will closely watch the future outlook provided by the management. IT bellwether Infosys Technologies kickstarts the earnings reporting season on Wednesday, 15 April 2009.
Consensus earnings expectations have been consistently revised downwards. There could be further earnings downgrades if the macroeconomic situation does not improve materially, analysts reckon.
Signs of an improvement in the Indian economy triggered a solid rally on the domestic bourses in the past few days. The rally was also a part of a sharp surge in global equities 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 jumped 2,643.46 points or 32.39% to 10,803.86 on 9 April 2009, its highest closing since 15 October 2008. The rally was broad-based with stocks across market-cap and sectors surging.
Near zero WPI inflation and weak industrial production data have raised expectations of a further easing of the monetary policy by the Reserve Bank of India (RBI) to revive slowing economic growth. RBI governor D Subbarao said policy will be tailored to arrest a steeper-than-estimated moderation in growth.
Inflation based on the wholesale price index (WPI) rose 0.26% in the year through 28 March 2009, lower than previous week's 0.31% rise, data released by the government on 9 April 2009 showed. It was the lowest growth in WPI inflation in at least two decades. Another data showed India's industrial production declined 1.2% in February 2009 compared to a 0.4% rise in January 2009. The government revised upwards the January 2009 industrial production to 0.4% from a provisional fall of 0.5%.
Foreign funds have resumed buying of Indian stocks. Foreign funds bought shares worth Rs 1103.40 crore in three trading sessions from 1 April 2009 and 6 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.
Domestic institutional investors had absorbed heavy selling by foreign funds witnessed in first two months of calendar year 2009
Bulls call the shots
A revival in global risk appetite and expectations the struggling world economy may have bottomed out boosted Indian indices for the fifth week in a row. The top-30 Sensex has climbed 32.39% from a low of 8160.40 on 9 March 2009.
The rally has lifted the market to positive territory this year after it had plunged 52% in 2008.
Falling inflation was another booster for the market besides positive global cues. Inflation based on the wholesale price index (WPI) rose 0.26% in the year through 28 March 2009, lower than previous week's 0.31% rise, data released by the government on Thursday, 9 April 2009, showed.
The 30-share BSE Sensex jumped 455.03 points or 4.40% to 10,803.86, in the week ended Thursday, 9 April 2009. The broader 50-issue Nifty jumped 131 points, or 4.07% to 3342.05 in the week
The BSE Mid-Cap index gained 232.93 points or 7.45% to 3,358.35 and the BSE Small-Cap index advanced 330.63 points or 9.62% to 3,767.55 in the week.
The Sensex is up 11.98% in calendar 2009 from its close of 9,647.31 on 31 December 2008. The S&P CNX Nifty is up 12.93% in calendar 2009 from its close of 2,959.15 on 31 December 2008.
UBS Wealth Management raised Indian market to 'overweight' on Thursday, 9 April 2009, as domestic demand improves and easing inflation paves the way for more rate cuts. The brokerage said in a note that valuations of Indian stocks have fallen to attractive levels and Indian firms have higher return on equity compared with other Asian markets. UBS had earlier on 27 March 2009, predicted that the Sensex could rise to 13,500 by March 2010 in anticipation of a recovery in earnings.
Goldman Sachs raised India market to 'market weight,' on 1 April 2009, the first upgrade since the brokerage rated it 'underweight' in January 2008, when the benchmark index climbed to a record high. The brokerage said India has a higher proportion of domestic demand drivers than many other Asian economies, while it expects relatively better corporate profit growth than in most other markets.
As the provisional data released by the stock exchange, foreign funds bought shares worth a net Rs 573.33 crore on Wednesday, 8 April 2009. Foreign funds bought shares worth Rs 1103.40 crore in three trading sessions from 1 April 2009 and 6 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.
Auto, realty, metal and capital goods stocks led a rally on Monday, 6 April 2009. The BSE 30-share Sensex rose 186.04 points, or 1.8%, to 10,534.87. The S&P CNX Nifty was up 45.55 points or 1.42% to 3,256.60.
Key benchmark indices extended recent strong gains with the barometer index BSE Sensex registering its highest closing in nearly six months on Wednesday, 8 April 2009. The BSE 30-share Sensex rose 207.47 points or 1.97% to 10,742.34. The S&P CNX Nifty gained 86.35 points or 2.65% to 3,342.95.
The 30-share BSE Sensex rose 61.52 points or 0.57% at 10,803.86 on Thursday, 9 April 2009. The S&P Nifty ended almost flat at 3342.05.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 4.24% in the week. The company started pumping gas from the Krishna Godavari (KG) which is estimated to add close to $2 billion to the company's profit at peak production levels.
Metal stocks extended gains as global metal prices rose. Hindalco Industries (up 4.44%), Steel Authority of India (up 3.45%), Sterlite Industries (up 6.35%), National Aluminum Company (up 9.62%) and Tata Steel (up 16.17%), rose.
Steel ropes maker Usha Martin surged 12.24% on reports the European Union scrapped a 23.8% tariff on steel ropes.
Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. DLF (up 9.29%), Indiabulls Real Estate (up 25.43%), Unitech (up 12.13%). Most of the realty deals including sale of commercial property and housing sales is driven by bank finance.
Banking stocks rose on hopes falling interest rates will boost lending growth. India's largest private sector bank by net profit ICICI Bank rose 10.40%. ICICI Bank's advance tax payment remained unchanged at Rs 250 crore in Q4 March 2009 when compared to Q4 March 2008.
India's second largest private sector bank by operating income HDFC Bank rose 1.09%. 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, however, fell 0.43%. 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 7.62%. It announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective 25 March 2009.
India's largest truck maker by sales Tata Motors, which started taking bookings for its world's cheapest car Nano on 9 April 2009, rose 10.94%
India's largest engineering firm by revenue Larsen & Toubro gained 15.56%.
The Indian government on Thursday, 9 April 2009, launched its biggest-ever auction of oil and gas assets, offering 70 exploration blocks at a time when global oil demand is waning due to economic slowdown. The government has offered 24 deepwater blocks, 28 shallow water blocks and 18 onland blocks in the auction, which will close on 10 August 2009.
The government has also offered 10 coal-bed methane blocks for exploration in the fourth round of offering such blocks. The government has so far awarded 212 oil and gas blocks, under its licencing policy introduced in 1999.
Total passenger car sales in the domestic market increased marginally in March 2009 to 1,29,358 from 1,28,098 units in March 2008, according to the figures released by the Society of Indian Automobile Manufacturers (SIAM) on 8 April 2009.
Total two-wheeler sales in March 2009 jumped 3.65% at 6,54,017 units compared to 6,30,976 units in March 2008. Commercial vehicle sales during the month, however, dipped by 26.22% to 41,881 units from 56,768 units for the year-ago period, SIAM said. The grand total of all vehicle sales in March 2009 soared by 1.09% at 8,93,934 units as against 8,84,313 units in the same month last year.
Sensex up 32.39% from recent low
Key benchmark indices registered small gains in a highly volatile trade today. Volatility in banking stocks and the index heavyweight Reliance Industries (RIL) caused volatility in the key benchmark indices. The BSE 30-share Sensex rose 61.52 points or 0.57%, up close to 145 points from the day's low and off close to 130 points from the day's high. The Sensex registered its highest closing in nearly six months.
Fall in headline inflation and weak industrial production data for February 2009 raised expectations of a further easing of the monetary policy by the Reserve Bank of India (RBI). Resumption of buying by foreign funds also bolstered sentiment.
Volatility was high. The market surged in early trade with the Sensex hitting its highest level in more than five months on firm Asian stocks. The market soon cut gains and slipped in the red for a brief period. The market regained strength later and extended gains in early afternoon trade on data showing fall in headline inflation.
After a sharp surge, the Sensex slipped into the red again in afternoon trade before bouncing back. High volatility was witnessed in the last one hour of trade.
Signs of an improvement in the Indian economy triggered a solid rally on the domestic bourses in the past few days. The rally was also a part of a sharp surge in global equities 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 jumped 2,643.46 points or 32.39%.
Inflation based on the wholesale price index (WPI) rose 0.26% in the year through 28 March 2009, lower than previous week's 0.31% rise, data released by the government today, 9 April 2009, showed. It was the lowest growth in WPI inflation in at least two decades.
Another data showed India's industrial production declined 1.2% in February 2009 compared to a 0.4% rise in January 2009. The government revised upwards the January 2009 industrial production to 0.4% from a provisional fall of 0.5%.
Near zero WPI inflation and weak industrial production data raised expectations of a further easing of the monetary policy by the RBI to revive slowing economic growth. RBI governor D Subbarao said this week policy will be tailored to arrest a steeper-than-estimated moderation in growth.
Meanwhile, the Indian government today launched its biggest-ever auction of oil and gas assets, offering 70 exploration blocks at a time when global oil demand is waning due to economic slowdown. The government has offered 24 deepwater blocks, 28 shallow water blocks and 18 onland blocks in the auction, which will close on 10 August 2009. The government has also offered 10 coal-bed methane blocks for exploration in the fourth round of offering such blocks. The government has so far awarded 212 oil and gas blocks, under its licencing policy introduced in 1999.
European shares were higher on Thursday, 9 April 2009, up for the second consecutive session, with banks and commodity stocks leading the rally. Key benchmark indices in France, UK and Germany were up by between 0.25% to 1.15%.
The Bank of England today left interest rates unchanged at a record low of 0.5% and said it would take another two months to complete its 75 billion pound quantitative easing program.
British inflation continued to ease at the wholesale level in March 2009, with producer prices up 2% compared to the same month last year, the Office for National Statistics reported Thursday. That's the smallest rise since July 2007.
Asian stocks rose on Thursday, 9 April 2009, led by automakers and electronics companies, as Japan's ruling party proposed $154 billion of additional spending and reported an unexpected increase in machinery orders. The Nikkei 225 average jumped 3.74% as Japanese machinery orders rose for the first time in five months in February 2009, adding to signs that the recession may be easing.
As per reports Japan's ruling Liberal Democratic Party will propose the government implement a 15.4 trillion ($154 billion) stimulus package to help revive the economy. Japanese Prime Minister Taro Aso indicated this week he wanted to spend at least 10 trillion yen.
Japanese machinery orders unexpectedly rose for the first time in five months in February 2009. Bookings, an indicator of capital investment in the next three to six months, climbed 1.4% from January 2009, the Cabinet Office said today in Tokyo. The report added to signs the global recession might be easing. Even so, Australia's jobless rate rose to a five-year high of 5.7%, the statistics bureau said today. The Organization for Economic Cooperation and Development said on 27 March 2009 its 30 members are likely to see their economies contract by 4.2% this year.
Key benchmark indices in China, Hong Kong, Singapore and Taiwan rose by between 1.38% to 4.12%.
South Korea's Kospi index jumped 4.3% after the Bank of Korea's monetary policy committee left interest rates unchanged at a record low of 2%, signaling that there may be some hint of improvement in the economy. In a statement, the committee said that while domestic economic activity has continued to decline because of drops in both domestic demand and exports, the pace of the slowdown has moderated somewhat. There are signs that production activity in the manufacturing and services sectors is improving slightly, it said.
US stocks rose on Wednesday, 8 April 2009, after the Treasury said it may give funds to life insurers. Trading in US index futures showed the Dow could rise 60 points at the opening bell on Thursday, 9 April 2009.
Closer home, the Q4 March 2009 results of India Inc would start trickling in soon and investors will closely watch the future outlook provided by the management. IT bellwether Infosys Technologies kickstarts the earnings reporting season on 15 April 2009.
One domestic brokerage expects core earnings of 30-Sensex firms to decline 12% in Q4 March 2009 over Q4 March 2008. The decline in earnings may be more widespread than in the previous quarter. The decline in earnings was led primarily by commodities in Q3 December 2008. The above mentioned brokerage expect earnings to decline in real estate, automobiles, banking, financial services & insurance (BFSI), media, and construction, in addition to commodities (metals & mining, cement), sectors. FMCG and capital goods are expected to report only a marginal earnings growth. Oil marketing companies are, however, expected to post strong earnings growth.
The suspension of AS-11 till 2011 will result in significant increase in profits in Q4 March 2009, as companies may write back marked-to-market losses on foreign currency liabilities booked in the past three quarters.
The above-mentioned brokerage expects Sensex earnings to decline 5% in the year ending March 2010 (FY 2010). Capital goods, FMCG, oil & gas, and BFSI are expected to register earnings growth in FY 2010, whereas metals, cement and real estate are expected to see sharp earnings decline, it says in a recent report. Slowing economic growth, weak demand, and lower realisations will keep earnings growth and profitability of Indian corporates under pressure in the near term. With sales declining, operating leverage will result in margin contraction. However, this will be partially compensated by lower input costs.
Consensus earnings expectations have been consistently revised downwards. There could be further earnings downgrades if the macroeconomic situation does not improve materially.
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 1 April 2009. The new orders index rose to 49.5 in March 2009 from 45.9 in February 2009.
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.
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.
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 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.
Closer home, foreign funds have resumed buying of Indian stocks. As the provisional data released by the stock exchange, foreign funds bought shares worth a net Rs 573.33 crore on Wednesday, 8 April 2009. Foreign funds bought shares worth Rs 1103.40 crore in three trading sessions from 1 April 2009 and 6 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.
Domestic institutional investors had absorbed heavy selling by foreign funds witnessed in first two months of calendar year 2009.
The Indian rupee has bounced back after hit a record low beyond 52 per dollar early last month. The Indian rupee rose in early on Thursday as stocks extended gains for a sixth day while higher Asian units also boosted sentiment. The partially convertible rupee was at 50.01 per dollar, stronger than its previous close of 50.19/20.
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.
The BSE 30-share Sensex rose 61.52 points or 0.57% to 10,803.86, its highest closing since 15 October 2008. At the day's high of 10,932.12, the Sensex rose 189.78 points in early trade. At the day's low of 10,655.96, the Sensex fell 86.38 points in early trade.
The S&P CNX Nifty was almost unchanged at 3,342.05 compared to Wednesday (8 April 2009)'s close of 3342.95
The BSE clocked a turnover of Rs 5,915 crore, higher than Rs 5,437.91 crore on Wednesday, 8 April 2009.
Nifty April 2009 futures were at 3,353, at a premium of 10.95 points as compared to the spot closing of 3,342.05. Turnover in NSE's futures & options (F&O) segment was Rs 62,970.10 crore lower than Rs 63,465.15 crore on Wednesday, 8 April 2009.
The BSE Mid-Cap index rose 1.69% and the BSE Small-Cap index rose 1.66%. Both the indices outperformed the Sensex.
The BSE Realty index (up 5.42%), the BSE Metal index (up 1.65%), the BSE Bankex (up 2.64%), the BSE Consumer Durables index (up 2.59%), the BSE Capital Goods index (up 1.31%), the BSE Power index (up 0.59%) outperformed the Sensex.
The BSE FMCG index (down 1.36%), the BSE Auto index (down 0.87%), the BSE PSU index (down 0.69%), the BSE Healthcare index (down 0.49%), the BSE Oil & Gas index (down 0.26%), the BSE IT index (up 0.04%), the BSE TECk index (up 0.35%), underperfomed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,790 stocks advanced as compared to 807 that declined. A total of 52 shares remained unchanged. The breadth was weak earlier in the day.
From the 30 share Sensex pack 18 stocks gained while rest fell.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 0.52% to Rs 1,733.05. The stock was off the day's high of Rs 1,759. The company started pumping gas from the Krishna Godavari (KG) recently which is estimated to add close to $2 billion to the company's profit at peak production levels.
Meanwhile, as per recent reports, RIL and ONGC Videsh (OVL) may pick up 20% stake each in at least one of the three large oil fields in Venezuela's Carabobo region. Each one of the Carabobo oil fields has 40-50 billion barrels of proven oil reserves enough to meet the total global oil demand for 6-8 weeks. The RIL-OVL consortium will pick up 40% stake while the balance 60% will be held by Venezuela's national oil company PdVSA.
Essar Oil jumped 2.28% extending gains for the sixth day in a row on reports the firm is buying 50% stake in a Kenyan refinery.
Metal stocks rose as a measure of six metals rose 0.7% in London yesterday, 8 April 2009, its second day of gains. Tata Steel, Steel Authority of India, Sterlite Industries, National Aluminum Company and Hindalco Industries rose by between 0.09% to 7.71%.
Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. DLF, Indiabulls Real Estate, Unitech rose by between 4.83% to 7.62%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
Banking stocks rose on hopes falling interest rates will boost lending growth. However, bank stocks were volatile. India's largest private sector bank by net profit ICICI Bank was up 5.62% to Rs 397.70. The stock hit the high of Rs 401.70 and a low of Rs 371.55. Its American depository receipts (ADR) rose 4.54% on Wednesday, 7 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 was up 0.02% to Rs 1,046.05. The stock hit the high of Rs 1,079 and a low of Rs 1,033. Its ADR rose 2.18% on Wednesday. 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 was up 1.47% to Rs 1,140.40. The stock hit the high of Rs 1,162.90 and a low of Rs 1,116.30. 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 fell 0.35%. It announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective 25 March 2009.
As per the latest RBI data, credit growth from the banking sector slowed down to 17.27% in the financial year ended March 2009, from 21.60% in the financial year ended March 2008. It was the slowest pace of credit growth in five years.
Shares of FMCG companies fell as recovering equity market forced investors to dump these so called defensive stocks. Godrej Marico, Britannia Indisustries, Nestle India, ITC, Hindustan Unilever, fell by between 0.47% to 3.26%.
Some healthcare stocks rose triggered by expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Lupin, Dr Reddy's Laboratories, Ranbaxy Laboratories, Biocon, Sun Pharmaceutical Industries, Piramal Healthcare rose by between 0.74% to 3.12%.
Some cement stocks fell on reports cement prices will fall post general elections as demand from state projects tapers off and credit crunch thwarts new projects. ACC, Ultratech Cement and Bila Corporation India fell by between 0.68% to 2.65%.
India's largest engineering and construction firm by sales Larsen & Toubro rose 2.76% after firm secured orders worth Rs 605 crore from the water and steel sectors.
Other capital goods stocks, Crompton Greaves, ABB, AIA Engineering rose by between 1.48% to 11.09%.
Outsourcing focussed IT stocks fell on a stronger rupee. India's third largest software services exporter, Wipro fell 2.8%. Its ADR rose 10.71% on Wednesday. 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 fell 0.26%. As per recent reports company bagged a $80 million outsourcing contract from UK's Child Maintenance and Enforcement Commission, the first in a series of $2-3 billion worth of contracts to be awarded by the UK's state-owned departments. 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 fell 1.65% on recent 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.
But, India's second largest software services exporter Infosys Technologies rose 0.33%. Its ADR rose 2.55% on Wednesday.
Recent reports said Infosys 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.
A firm rupee affects operating profit of IT firms negatively as they earn most of their revenues from exports.
Unitech clocked the highest volume of 3.39 crore shares on BSE. Satyam Computer Services (2.39 crore shares), Reliance Natural Resources (2.2 crore shares), Cals Refineries (2.19 crore shares) and Suzlon Energy (1.58 crore shares) were the other volume toppers in that order.
Reliance Industrial Infrastructure clocked the highest turnover of Rs 404.33 crore on BSE. Reliance Industries (Rs 288.56 crore), Reliance Infrastructure (Rs 247.22 crore), ICICI Bank (Rs 237.47 crore) and Reliance Capital (Rs 227.18 crore) were the other turnover toppers in that order.
The stock market remains closed tomorrow, 10 April 2009, on account of Good Friday.
Pre Session Commentary - Apr 9 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened positive and the US markets closed in green. The phenomenal recovery and a positive trend on the last session of yesterday’ trade shows some sign of firmness amongst the bulls. The positive sentiments are likely to help markets sustain the Bull Run and make new support levels. During the later session of the day’s trade investors would track the movements of the Asian and European markets as well.
On Wednesday, the domestic markets emerged as a sole gainer in the Asian markets. The day’s session started with a negative gap opening on the back of bearish cues from other Asian markets. The buying sentiments however emanated after the post mid-session as heavy weight stocks recovered phenomenally. The European markets were trading mixed and hardly influenced the sentiments of domestic investors. Aggressive buying was witnessed in sectors like Realty and FMCG. On the other hand madcap and small cap stocks were in the limelight. The markets touched six months high today and have gained 33.5% on its 2009 low on March 6. Sectors like Realty, CD, FMCG, PSU and Oil & Gas witnessed huge buying as they gained 4.74%, 4.62%, 4.47%, 3.54% and 3.24% respectively. However Bankex was the only sector that was hammered. During the session we expect the markets to be trading positive with an essence of mild volatility.
The BSE Sensex closed with gain of 207.47 points at 10,742.34 and NSE Nifty ended with gain of 86.35 points at 3,342.95. BSE Mid Caps and BSE Small Caps ended with gains of 99.51 points and 158.73 points at 3,302.59 and 3,705.97 respectively. The BSE Sensex touched intraday high of 10,778.11 and intraday low of 10,171.91.
On Wednesday, the US Markets closed positive as the Treasury extends the bailout funds to insurers. Markets opened on positive note backed by news that the Treasury is planning to extend bailout funds to insurers. However despite the news the financial markets were the laggards during the day’s trade. The bad news came up from the FOMC minutes that the February housing starts may not be the beginning of the new trend. The earnings season seems to kick off as the as Dow component Alcoa unofficially kicked off with a deeper than expected loss. The US light crude oil for May delivery inclined by 0.6% to settle at $49.45 a barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed high by 47.55 points at 7,837.11 the NASDAQ Composite (RIXF) index inclined by 29.05 points to close at 1,590.66 and the S&P 500 (SPX) inclined by 9.61 points to close at 824.16.
Today major stock markets in Asia are trading positive. Shanghai composite is up by 3.39 points at 2,350.78. Hang Seng is trading up by 305.52 points at 14,780.41 followed by Japan''s Nikkei which is up by 224.18 points at 8,819.19, Strait Times is up by 34.81 points at 1,818.77. While Taiwan Weighted is up with gains of 172.44 points at 5,616 and Seoul Composite points is also up by 36.07 points at 1,298.14 respectively.
Indian ADRs ended mostly higher. In technology sector, Infosys ended up by 2.55% along with Wipro by 10.71%. Further, Patni Computers gained 4.72% while Satyam closed lower by 3.92%. In banking sector ICICI Bank and HDFC Bank gained 4.54% and 2.18% respectively. In telecommunication sector Tata Communication and MTNL advanced by 5.75% and 5.20% respectively.
The FIIs on Wednesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 2,619.80 Crore and gross debt purchased stood at Rs 1101.00 Crore, while the gross equity sold stood at Rs 2,447.50 Crore and gross debt sold stood at Rs. 315.50 Crore. Therefore, the net investment of equity and debt reported were Rs 172.30 Crore and Rs 785.50 Crore respectively.
On Wednesday, the Rupee closed at Rs. 50.19/20, 0.28% weaker than its previous close of Rs. 50.05. The local currency closed weaker due to the early losses in the stock markets however managed to pare off an early trough of 50.67.
On BSE, total number of shares traded were 57.23 Crore and total turnover stood at Rs 5,437.91 Crore. On NSE, total number of shares traded was 124.13 Crore and total turnover was Rs 17,605.82 Crore.
Top traded volumes on NSE Nifty – Unitech with 79449575 shares, Suzlon Energy with 45768596 shares, DLF with 20913995 shares, ICICI Bank with 18592959 shares followed by Hindalco with 15897043 shares.
On NSE Future and Options, total number of contracts traded in index futures was 1108333 with a total turnover of Rs 17,249.62 Crore. Along with this total number of contracts traded in stock futures were 555133 with a total turnover of Rs 18,909.68 Crore. Total numbers of contracts for index options were 1532903 with a total turnover of Rs 25,131.46 Crore and total numbers of contracts for stock options were 58922 and notional turnover was Rs 2,174.39 Crore.
Today, Nifty would have a support at 3,303 and resistance at 3,385 and BSE Sensex has support at 10,575 and resistance at 10,910.
Dish TV India
We recommend a buy in Dish TV India stock from a short-term trading horizon. It is evident from the charts of Dish TV that it has been on an intermediate-term uptrend from October 2008 low of Rs 11.75 (a 52-week low). Since then, the stock has been forming higher peaks and higher troughs. The stock has been trading well above its 21- and 50-day moving averages. On April 6, the stock penetrated its 200-day moving average, jumping 8 per cent with an upward gap. Moreover, the counter broke through a key resistance at Rs 28 on April 8, surging 7 per cent. We notice that there is an increase in volume over the past three trading sessions. The daily relative strength index is featuring in the bullish zone and the weekly RSI is on the brink of entering in to this zone from the neutral region. Considering that the intermediate-term up trendline is intact, we are bullish on the stock from a short-term perspective. We expect it to rally until it hits our price target of Rs 34. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 28.
Market may extend gains on FII buying, firm Asian equities
Resumption of buying by foreign funds and firm Asian stocks may help domestic bourses extend recent solid gains. Sings of an improvement in the Indian economy triggered a solid rally on the domestic bourses in the past few days. The rally was also a part of a solid surge in global equities 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 jumped 2,581.94 points or 31.63% to 10,742.34 on 8 April 2009, its highest closing since 15 October 2008
Foreign funds have resumed buying of Indian stocks. As the provisional data released by the stock exchange, foreign funds bought shares worth a net Rs 573.33 crore on Wednesday, 8 April 2009. Foreign funds bought shares worth Rs 1103.40 crore in three trading sessions from 1 April 2009 and 6 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.
The government will release industrial production data for February 2009 today, 9 April 2009. Another data due today is likely to show that the inflation based on the wholesale price index (WPI) hovered near zero level in the year through 28 March 2009. The inflation data is due around noon.
Asian stocks rose on Thursday, 9 April 2009, on an unexpectedly positive core machinery orders reading in Japan and on overnight gains in US stocks. The Nikkei 225 average was up 2.2% as Japanese machinery orders unexpectedly rose for the first time in five months in February 2009, adding to signs that the recession may be easing.
Trading in US index futures showed the Dow could rise 47 points at the opening bell on Thursday, 9 April 2009.
Bullion metals end higher
Gold and silver both gain as Aloca reports more than expected loss
Bullion metal ended higher once again on Wednesday, 08 April, 2009. Prices rose as traders still continued to worry about the current recessionary conditions as Alcoa posted a larger than expected loss in its latest quarter. These sentiments once again fuelled the recession concerns thereby increasing 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 Wednesday, Comex Gold for April delivery rose $2.6 (0.3%) to close at $884.8 an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 3%. Year to date, gold prices are lower by 0.4%.
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 (15.5%) since then.
On Wednesday, Comex silver futures for May delivery rose 13 cents (1.1%) to end at $12.34 an ounce. Year to date, silver has climbed 9.2% this year. For 2008, silver had lost 24%.
After market closed yesterday, Alcoa reported its latest quarterly earnings. The company reported a first quarter (March) loss of $0.59 per share. Revenues fell 40.7% year-over-year to $4.15 billion versus the $4.08 billion consensus. The sharp drop in revenue resulted from the impact of the economic downturn on Alcoa's end markets - automotive, transportation, building and construction and aerospace.
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 higher by Rs 1 (0.001%) at Rs 14,298 per 10 grams. Prices rose to a high of Rs 14,465 per 10 grams and fell to a low of Rs 14,211 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 51 (0.24%) higher at Rs 20,553/Kg. Prices opened at Rs 20,645/kg and rose to a high of Rs 20,750/Kg during the day's trading.
Crude gains for first time in four days
Prices give up early losses as stockpiles grow less than expected
Oil prices pared early losses and ended marginally higher on Wednesday, 08 April, 2009. Prices gave up earlier losses after energy department reported that there was less than expected build up in crude inventories. Prices rose today for first time in four days.
On Wednesday, crude-oil futures for light sweet crude for May delivery closed at $49.38/barrel (higher by $0.23 or 0.5%) on the New York Mercantile Exchange. During intra day trading, it dropped to a low of $47.37. Last 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 68% since then. Year to date, in 2009, crude prices are higher by 8.8%. On a yearly basis, crude prices are lower by 50%.
The EIA reported today that crude inventories rose 1.7 million barrels in the week ended 3 April, 2009. Market was expecting a build up to the tune of 2 million barrels. Stockpiles in the U.S., the world's biggest oil consumer, still stood at the highest level in 16 years.
The EIA also reported that gasoline inventories rose 600,000 barrels while distillate stockpiles, which include diesel and heating oil, declined by 3.4 million barrels during the week under review. U.S. refineries operated at 81.8% of their operable capacity last week, up slightly from a week ago. Meanwhile, the EIA also reported petroleum demand over the last four-week period fell 4.4% from a year ago.
Also at the Nymex on Wednesday, May reformulated gasoline rose 1.4% to $1.4396 a gallon and May heating oil gained 0.6% to $1.3982 a gallon.
May natural-gas futures gained 4.6% to $3.562 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for March delivery closed at Rs 2,538/barrel, higher by Rs 43 (1.7%) against previous day's close. Natural gas for April delivery closed at Rs 183.1/mmbtu, higher by Rs 2/mmbtu (1.1%).
Daily News Roundup - Apr 9 2009
RIL and ONGC Videsh may buy 20% stake each in at least one of the three large fields in Venezuela’s Carabobo region (ET)
Tech Mahindra to review Satyam bid (ET)
NTPC to triple its annual power capacity addition to 3,300MW in FY10 (BS)
DLF has entered into an agreement with an HNI to sell its 60-room hotel at Saket, New Delhi, for Rs550mn (ET)
ACC to invest Rs16bn in 2009 and Rs13bn in 2010 (ET)
Wockhardt to hive-off its Bio-tech division into a separate company and is planning to rope in a global Pharma major as a strategic investor (BS)
M&M is working on a new product to hold its market share in UVs (ET)
IOC re-deploying staff from BRPL as a part of merger (BL)
Idea rolls out GSM services in Orissa (BL)
Moody cuts Tata Chemicals corporate family rating to Ba1 from Baa3 (ET)
BHEL earmarks Rs9bn for R&D by 2011-12 (FE)
NALCO sells 30,000 tones of alumina at US$227.6/ton (FE)
DLF sold more than 85% of its west-Delhi housing projects in less than 24 hours (BS)
FIPB has approved a JV between John Deere and Ashok Leyland for construction equipments (ET)
GAIL inks pact with fertilizer companies to pipe KG basin gas (ET)
Aurobindo Pharma has received its first approval from Government of Switzerland for finasteride tablets (BL)
ABB opens automation facility near Bangalore (BL)
Banks are likely to buy Wockhardt’s FCCBs from foreign investors (ET)
Omaxe gets moratorium on 40% of its debt (BS)
Shriram properties in talks to buy Sobha Developer’s assets worth Rs2-3bn (ET)
Strides Arcolab gets tentative US FDA approval for its Aids drug (BL)
UCO Bank is talks for general insurance venture (BL)
Four Soft has entered into a contract with UK-based Calderhead Refrigerant Transport to implement the warehouse management system (FE)
Bank credit grew by 17.3% yoy in FY09 (BS)
Indian imports to fall faster than exports in March 2009, as per early estimates of the Commerce Department (ET)
Cement prices likely to stabilize, says Deputy Chairman of ACC (ET)
Banks see 50bps PLR cut soon (FE)
Bulls think of more action!
Think like a man of action, act like a man of thought.
Looks like the bulls have tasted blood. Despite weak global markets our market staged a remarkable turnaround. The market breadth continues to be strong as “momentum trading” seems to be in vogue again. In another healthy sign, trading volume and turnover too have picked up. In fact, the broader indices outperformed the frontline rivals by a wide margin. Some argue the gains are operator-driven.
We see the momentum continuing though for a few more days till it faces a big hurdle. This could be in the form of bad earnings or guidance, unfavourable outcome in the Lok Sabha polls or fresh bad news from the global markets.
As far as today goes, the outlook is positive with most Asian markets up smartly this morning. US stocks broke a two-day fall on the back of a merger in the housing sector and speculation of a bailout for life insurers. Keep an eye on the weekly inflation numbers as well as February’s IIP data. Given the extended weekend, there could be some cooling later on.
Meanwhile, the Federal Reserve has cut its GDP forecast for the US economy for this year. Warren Buffett's Berkshire Hathaway has lost its AA rating. The Bank of Korea has decided to keep interest rates steady for another month. Japan's core machine orders surprisingly rose in February.
The UK economy shrank 1.5% in the first quarter, as the recession increasingly resembled the one that started in 1979 when Margaret Thatcher took power, the National Institute of Economic and Social Research said.
Ireland’s top AAA credit rating was lowered one level by Fitch Ratings, the second reduction in two weeks, after global financial turmoil fueled a surge in borrowing costs and swelled the budget deficit.
Australia’s jobless rate jumped by the most since the nation’s economy was last in a recession in 1991, stoking speculation the central bank will be forced to extend a record round of interest-rate cuts.
FIIs were net buyers in the cash segment on Wednesday at Rs5.73bn while the local institutions were net sellers at Rs3.78bn. In the F&O segment, the foreign funds were net buyers at Rs1.5bn. On Monday, FIIs were net buyers at Rs1.72bn in the cash segment. Mutual Funds were net sellers at Rs2.23bn on the same day.
Mastek will announce its results today. The result season will accelerate from next week. IT titan Infosys will come out with its results and guidance on April 15.
US stocks rallied on Wednesday at the end of a volatile session as a housing sector merger and more optimism about the recovery overshadowed sinking bank shares and the Fed's dour economic forecast. Investors also seemed to take in stride Alcoa's glum start to what is expected to be a dismal quarterly results reporting period.
The Dow Jones Industrial Average gained 47 points, or 0.6%. The S&P 500 index rose 9 points, or 1.2%. The Nasdaq Composite index advanced 29 points, or 1.9%.
US stocks had slipped on Monday and Tuesday following a four-week advance that sent the Dow and S&P 500 spiking more than 20% off 12-year lows. But after the brief retreat, investors managed to recharge the advance on Wednesday.
Stocks briefly cut gains after the release of the minutes from the Federal Reserve policy meeting last month, when central bank policymakers opted to keep interest rates at levels near zero. The central bank forecast a delay in the economic recovery until 2010, instead of the second half of this year. The bankers also thought the unemployment rate would rise more steeply into 2010.
Pulte Homes is buying Centex in a $3.1 billion deal - including debt - that creates the nation's largest homebuilder. The deal gave a boost to a number of other companies in the sector, including Lennar and Hovnanian Enterprises.
The insurance sector got a lift from a published report that said Treasury will let certain insurers receive aid from its Troubled Asset Relief Program (TARP). Gainers included Hartford Financial, Genworth Financial and Lincoln National.
Alcoa reported a first-quarter loss of 59 cents per share after the close Tuesday, wider than the loss of 56 cents per share analysts were expecting. The aluminum maker earned 44 cents a year earlier. Revenue fell to $4.1 billion from $7.375 billion a year ago, versus forecasts for a bigger drop to $4.08 billion. Alcoa is typically the first Dow component and major company to report results each quarter. Shares gained 3.5% on Wednesday.
Bed Bath & Beyond reported weaker quarterly earnings that beat forecasts on lower revenue that met estimates. Shares jumped over 24%.
The rally was set back following reports that regulators are recommending restrictions on all short-selling, not just on financial shares, as had previously been thought. The stock market got a boost last month on talk that the Securities and Exchange Commission (SEC) would reinstate the uptick rule - that limits short selling - on financial shares. Critics have said that the absence of the rule has exacerbated the selloff in bank stocks.
In the day's economic news, February wholesale inventories fell 1.5% versus forecasts for a drop of 0.7%. Inventories fell 0.7% in the previous month.
Treasury prices rallied, lowering the yield on the benchmark 10-year note to 2.88% from 2.91% on Tuesday. Treasury prices and yields move in opposite directions.
In currency trading, the dollar fell versus the euro and the yen.
US light crude oil for May delivery settled up 23 cents at $49.38 a barrel on the New York Mercantile Exchange. Prices slipped in the morning, but turned around after the government's weekly energy report showed crude supplies increased less than expected.
COMEX gold for June delivery rose $3.40 to settle at $885.90 an ounce.
Sales report from US retailers are due on Thursday morning. Sales improved in February after four straight months of declines, but investors will be looking to see if the consumer is continuing to hang in despite the recession.
The government will release the February trade balance and the weekly jobless claims report before the start of trading, along with the March report on import and export prices.
Thursday is also Passover, although many celebrations begin the night before. Financial markets are open on Thursday, but trading volume is expected to be light ahead of Good Friday, when all markets are closed.
Indian markets extended gains to fifth straight trading session on Wednesday despite starting the day with a huge negative gap. Bulls staged a strong come back with Sensex bouncing back nearly 600 points and the NSE Nifty index recovering nearly 200 points from their respective day’s low. The BSE Sensex surged 207 points to close at 10,742 and the NSE Nifty surged 86 points at 3,343.
Among the 30-components of Sensex, 22 stocks ended in positive terrain and 8 stocks ended in the red. JP Associates, NTPC, Tata Motors, Hindustan Unilever, L&T and ITC were among the major gainers. Among the top losers were Hindalco, M&M, RCom, HDFC Bank and Sterlite.
Shares of Aurobindo Pharma gained by 3.5% to Rs197 after the company announced that it received Swismedic approval for Finasteride tablets. The scrip has touched an intra-day high of Rs198 and a low of Rs183 and has recorded volumes of over 12,000 shares on BSE.
Shares of TCS gained by 4% to Rs604 after the company announced that it has entered into an agreement for a technology partnership with the Rajasthan Royals, champions of Indian Premier League 2008. The scrip touched an intra-day high of Rs612 and a low of Rs550 and recorded volumes of over 0.2mn shares on BSE.
Shares of Essar Oil further surged by 8.5% to Rs129 after hitting an intra-day high of Rs136 and a low of Rs112 and recorded volumes of over 10.4mn shares on BSE.
The stock surged for the fifth straight day its longest winning streak in almost two months. The stock has added 81% in the last five trading sessions. This is the longest stretch of gains since the period ended Feb. 10.
Shares of Tata Motors surged by over 6% to Rs222 after the company announced that it would set up a heavy truck manufacturing facility in Myanmar with a capacity of 1,500 units per annum, stated reports. The scrip touched an intra-day high of Rs225 and a low of Rs197 and recorded volumes of over 2.1mn shares on BSE.
NTPC Ltd. said on Wednesday that its provisional full year net profit rose 5.6% to Rs78.27bn on net sales of Rs421.82bn. Provisional net profit in the quarter ended March 31 was up 30% at Rs17.4bn, Chairman R.S. Sharma said today. That compares with Rs13.4bn in the same period a year earlier.
NTPC announced that it plans to add 3,300 MW of new electricity in fiscal year 2009-10 and plans to generate 1,000 MW of renewable energy by 2017. The state-run power utility company is also looking to acquire coal blocks in Indonesia and Mozambique.
The stock surged over 6% to end at Rs196 hitting an intra-day high of Rs199 and an intra-day low of Rs180 recording volumes of over 3mn shares on BSE.
Shares of Satyam Computer gained by 1% to Rs45 after the company announced its partnership with Pentaho Corporation, a leading open source business intelligence product company. The scrip touched an intra-day high
After witnessing a huge recovery on Wednesday, markets players would await for the IIP and inflation data to be released. Global cues would yet again play important role in dictating trend atleast in the opening trades.Market up on realty, consumer durables
The 30-stock index of BSE, Sensex, in lack of clear signals gyrated around 300 points in early trades. However, frenzied selling caused it to dip below 10200 mark to touch an intra-day low of 10172. Though the market erased most of its losses 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 10778. Sensex ended the session 207 points up at 10742, while Nifty moved up by 86 points to 3343.
Market breadth was extremely positive. Of the 2,552 stocks traded on the BSE 2,021 stocks advanced, whereas 468 stocks declined. Sixty three stocks ended unchanged. Of the 13 sectoral indices on BSE, only one (BSE Bankex) ended lower. Wiping its losses, BSE Realty moved up by 4.74% topping the list while BSE CD, occupying the second slot, up nearly 4.62%.
Several Sensex stocks registered decent gains. JP Associates flared up 8.71% at Rs106.05, National Thermal Power Corporation jumped by 6.70% at Rs196.75 Tata Motors gained 6.29% at Rs222.30 and Hindustan Unilever gained 6.06% at Rs 240.80. ITC, Larsen & Toubro, Wipro, Tata Consultancy Services, Tata Power and Sun Pharmaceutical Industries were up by more than 4-5% each. Among laggards, Mahindra & Mahindra shot up by 3.54% at Rs449.30, Hindalco Industries lost 2.92% at Rs58.20 and Reliance Communications gained 2.18% at Rs213.35. HDFC Bank, Bharat Heavy Electricals, Sterlite Industries, State Bank of India and Grasim Industries were down by 0.20-1% each.
Reliance Natural Resources attracted volumes of over 2.57 crore shares on BSE followed by Unitech (2.35 crore shares), United Breweries (2.12 crore shares) and Cals Refineries (1.98 crore shares)
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