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Friday, April 17, 2009
Weekly Newsletter - Apr 17 2009
Bulls may continue to be on a roll next week, as risk appetite is on the rise amid some tentative signs of recovery in the global economy, particularly in the US. Confidence in the western financial system is improving following positive results from the likes of Wells Fargo, Goldman Sachs and JP Morgan. Economic reports too do not appear to be as grim as a few months back, though a sustained rebound may still be some way away. Outflows by global funds have turned into relatively strong inflows, including in emerging markets like India. All these positives have raised optimism that the world economy and financial markets may be turning a corner.
Things are likely to remain positive in the short term, if global cues are supportive. Further rate cuts by the RBI may add fuel to the fire while a status quo too might not do any major damage to the sentiment either. In the meantime, polling for the next Lok Sabha will continue amid bitter war of words among the leading parties. A clear trend on who will form the next government at the Centre will emerge only after May 13. The results will be announced on May 16. In short, the undertone may continue to be positive. And, it will take a really bad development to put the bulls on the backfoot again. Still, one should not get too carried away and lock in some gains.
Key results next week are: Sesa Goa, Axis Bank, TCS, Hero Honda, Ultratech Cement, Hindustan Zinc, ACC, Ambuja Cements, HCL Tech, Marico, Zee Entertainment, Yes Bank, Wipro Idea, Bajaj Hindusthan, Reliance Infra, HDFC Bank, LIC Housing Finance, Reliance Power, Reliance Industries, HCL Infosystems, RNRL, Reliance Petroleum, Bharat Electronics, Cipla, Ranbaxy, Maruti Suzuki India, Piramal Healthcare, HCC, BILT and Wockhardt.
Infosys Q4 net profit down 1.7% QoQ
Infosys Technologies Ltd. announced financial results for the fourth quarter and financial year ended March 31, 2009. Under the Indian GAAP, Q4 FY09 net profit is at Rs16.13bn versus Rs16.41bn in the previous quarter, translating into a sequential drop of 1.7% in Rupee terms. Revenue for the January-March quarter of FY09 is at Rs56.35bn as against Rs57.86bn in Q3 FY09, indicating a sequential decline of 2.6%. Earnings Per Share (EPS) for the reporting quarter increased to Rs28.16 from Rs28.66 in the quarter ended December 31, 2008. EPS in Q4 FY08 was Rs21.83. Net profit for Q4 FY09 was up 29.1% compared to the same quarter of the previous fiscal year while revenue for the period is up 24.1% YoY.
For the fiscal year ended March 31, 2009, consolidated net profit after tax before exceptional item was Rs59.88bn; YoY growth was 28.5%. Consolidated revenue was Rs216.93bn in the year ended March 31, 2009; YoY growth was 30%. EPS before exceptional item increased to Rs104.60 from Rs81.53 in the previous year; YoY growth was 28.3%.
The net profit for the quarter and year ended March 31, 2009 includes a reversal of tax provisions pertaining to earlier period amounting to Rs150mn and Rs1.08bn, respectively (Rs200mn and Rs1.21bn for the quarter and year ended March 31, 2008). Excluding this reversal, the EPS for Q4 FY09 and year ended March 31, 2009 would have been Rs27.90 and Rs102.71 (Rs21.49 and Rs79.42 for the quarter and year ended March 31, 2008 respectively) resulting in a YoY growth of 29.8% and 29.3%, respectively.
The Board of Directors of Infosys has recommended a final dividend of Rs13.50 per share (270% on par value of Rs5 per share) for fiscal 2009.
"Many of our clients are impacted by the financial crisis and are looking to us to help them reduce their expenses and optimize their businesses," said S. Gopalakrishnan, CEO and Managing Director. "Our services, solutions and business model are well suited to help them in this environment. We are focusing on enhancing our business and investing smartly for the future."
Infosys and its subsidiaries added 37 new clients during the quarter. Infosys BPO registered six clients in the fourth quarter. Finacle added two top banks, one each from North America and Western Europe, to its list of customers this quarter. Eight Finacle customer projects went live this quarter - six in the Asia Pacific region, one each in the Europe, Middle East and Australia (EMEA) region and the Americas.
Tech Mahindra logs into Satyam
Satyam Computer Services Ltd. announced that its Board of Directors has selected Venturbay Consultants Pvt. Ltd., a subsidiary controlled by Tech Mahindra Ltd. as the highest bidder to acquire a controlling stake in the company, subject to the approval of the Company Law Board (CLB). Since there was no bid within at least 90% of Tech Mahindra's bid, which was the highest bid, the Board declared the Mumbai-based IT company as the highest bidder, Satyam said in a statement. Upon being declared the highest bidder, Tech Mahindra and the company executed a share subscription agreement within the company, it added.
Tech Mahindra has agreed to subscribe to 30.28 crore shares of Satyam, representing 31% of the share capital of the Hyderabad-based IT company after giving effect to the issuance of the initial shares at a price of Rs58 per share, thereby agreeing to infuse Rs17.56bn (or about US$351mn based on the exchange rate of Rs50 to US$1) into the company, Satyam said. The other two contenders - L&T and the Cognizant-Wilbur Ross consortium bid Rs45.90 a share and Rs20 a share, respectively.
Board members - Deepak Parekh and S.B. Mainak - abstained from discussion regarding the selection of the highest bidder, Satyam said. This was due to possible conflicts of interest since Parekh sits on the Board of the controlling shareholder of one of the bidders, while Mainak is the executive director of a significant shareholder of another bidder, it added.
The CLB approved a bid from Tech Mahindra to take over scam-tainted Satyam, while also offering immunity shield to the new directors to be appointed on the Satyam board by Tech Mahindra. Giving relief to Satyam, the CLB extended time limit for the IT company to declare quarterly financial results and file statutory documents up to December 31, 2009.
Meanwhile, the accounting standards regulator opposed the proposed sale of Satyam to Tech Mahindra before restating the accounts of the scam-hit IT company. "I am not happy with the deal as the company’s correct financial position was not yet known," Institute of Chartered Accountants of India (ICAI) president Uttam Prakash Agarwal said. He said ICAI would decide on taking up the matter with authorities concerned after its apex council meeting debates the deal.
Separately, B.K. Modi, whose Spice Group withdrew from the race for Satyam, expressed objections to the stake sale to Tech Mahindra. Modi said the process was not completed in a "transparent manner" and various guidelines set by the board and CLB were not followed. Modi plans to write to Justice S.P. Bharucha, who oversaw the sale process, and the CLB, objecting to the sale. Modi had earlier written to Bharucha complaining about the presence of common board members in Satyam and one of the bidders.
RIL, SBI April 2009 futures at premium
Turnover declines
Nifty April 2009 futures were at 3386.50, at a premium of 2.10 points as compared to the spot closing of 3384.40. Turnover in NSE's futures & options (F&O) segment was Rs 75,438.49 crore lower than Rs 78,509.17 crore on Thursday, 16 April 2009.
Reliance Industries (RIL) April 2009 futures were at premium at 1728.90 compared to the spot closing of 1716.95.
State Bank of India (SBI) April 2009 futures were at premium at 1312.55 compared to the spot closing of 1304.80.
Unitech April 2009 futures were at discount at 45.90 compared to the spot closing of 52.70.
In the cash market, the S&P CNX Nifty gained 14.90 points or 0.44% at 3384.40.
Asian markets ends in positive territory
Profit taking by investors trimmed the gains in Seoul, Shanghai while Sensex, Sydney manage to hold gains
Stock market in Asian region closed mostly higher Friday 17 April 2009; taking cues from Wall Street, where the major indices ended in positive territory on increasing confidence that the downturn in the economy has slowed down and the economy can begin to recover sooner-than-expected. Profit taking by investors trimmed the gains with the markets in Australia and Hong Kong ending nearly flat, while the South Korean market ended in negative territory. The underlying trend seems to be cautiously optimistic among investors despite the downward risk for the economies remaining relatively higher.
On Wall Street, stock markets ended with gains. Despite a slow, choppy start, stocks climbed in afternoon trading and finished with healthy gains. The jobless claims data checked in better than expected and this gave stocks some good reason to cheer about. But the economic report in the housing sector front, disappointed again. The Nasdaq outperformed the other indices as shares of large-cap tech stocks rebounded from their losses in the prior session.
After starting the day 6 points up earlier during the day, The Dow Jones Industrial Average ended higher by 95 points at 8,125. The Nasdaq Composite Index, ended higher by 44 point at 1,670. S&P 500 ended higher by 13.5 points at 865.
In the commodity market, crude oil fell, poised for the biggest weekly decline since February, amid forecasts the recession will curb demand at a time when U.S. inventories are already at their highest in almost 19 years.
U.S. crude-oil inventories rose 5.67 million barrels to 366.7 million last week, the highest since September 1990, the Energy Department said 15 April 2009. The International Energy Agency reported 10 April 2009 that worldwide consumption would shrink by 2.8% in 2009 as the global economy contracts.
Crude oil for May delivery fell as much as 48 cents, or 1%, to $49.50 a barrel, and traded at $49.87 at 11:09 a.m. London time on the New York Mercantile Exchange. Oil has dropped 4.9% this week, set for its sharpest decline since the week ended 13 February 2009.
Brent crude oil for June settlement was at $52.84 a barrel, down 22 cents, at 11:28 a.m. London time on London’s ICE Futures Europe exchange.
Gold headed for its fourth weekly decline, the longest losing streak since August, as a global stock rally eroded demand for the metal as a store of value. Bullion for immediate delivery fell as much as 0.4% to $872.63 an ounce. It traded at $872.30 at 11:09 a.m. in London, down 0.8% for the week.
In the currency market, the Japanese yen weakened against its major counterparts on Friday. The Japanese currency quoted at 99.50 against the US dollar.
The Hong Kong dollar was trading at HK$ 7.7502 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
In Sydney trades, the Australian dollar closed weaker on Friday as the market drifted amid a lack of local and global economic data. At its closing, the Australian dollar was trading at 72.05 US cents, down from Thursday's close of 72.35 cents.
In Wellington trades, the New Zealand dollar slipped to a fortnight-low against the greenback as risk averse investors sold off high-yielding currencies. The kiwi dropped to around US56.80 cents during a bumpy night from US57.55 cents yesterday. By today morning it had edged up to US57.11 cents.
The South Koran held steady at 1,332.00 won to the dollar as a morning-session gain was offset by a fall in afternoon trading.
The Taiwan dollar weakened slightly further against the US dollar as it was trading at NT$ 33.816, down by NT$ 0.116 from Thursday’s close of NT$33.800.
Coming back in equities, in Japan, the stock market finished the session higher, touched a three-month high buoyed by banks and financials and property developers on a positive lead from Wall Street on increasing optimism about a recovery in the global economy. The electronics makers were the biggest contributors to the Topix’s advance.
The Nikkei 225 Stock Average index rose 154.32 points, or 1.7%, to 8,907.58, while the broader Topix was 18.5 points, or 1.6%, higher to 846.
On the economic front, the Ministry of Economy, Trade and Industry said service sector output in Japan fell a seasonally adjusted 0.8% on month in February following the 0.4% gain in January. The decline was led by a 7.3% monthly fall in the learning support sector, which includes supplementary tutorial schools.
In Mainland China, the stock index finished session lower, extending losses for second day in row after Beijing reported a contraction in economic activity during first quarter of 2009. The declines were further fuelling by government warnings that financial institutions should guard against risky loans amid a flood of a new lending as Beijing rolls out stimulus measures.
Investors sentiments turns fragile after media reported that regulators were taking a tougher stance on monitoring the use of short-term loans, after the Shanghai Securities News on Friday said about one-fifth of new first-quarter lending in the form of short-term discounted bills did not flow into the real economy, signifying that about 300 billion Yuan in loans had been channeled to stocks and other assests or used for arbitrage business.
The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, fell 1.2%, or 30.19 points to 2,503.93. The Shenzhen Component Index was down 1.35%, or 131.29 points to 9,580.06.
On the economic front, the World Bank approved a $300 million loan to China for a railroad project being funded mostly by the Chinese government. The National Bureau of Statistics said Thursday China’s gross domestic product expanded 6.1% in the first quarter of 2009, following the 6.8% gain in the previous quarter. The Consumer prices in China eased 1.2% on year in March. For the first quarter of 2009, inflation was down 0.6% on year. Producer prices fell an annual 4.6% in the first quarter. The Industrial production was up 5.1% on year.
In Hong Kong, the stock market erased most of morning gains to finish the session somewhat higher, as bleak economic data from Shanghai dented optimism about an imminent global recovery. Shares of financials and china-related stocks turns lower after Beijing warnings that financial institutions should guard against risky loans amid a flood of a new lending as Beijing rolls out stimulus measures.
The Hang Seng Index surged 18.28 points, or 0.12%, to 15,601.27, while the Hang Seng China Enterprise Index, which tracks H shares of Chinese companies, dropped 89.05 points, or 0.97% to 9,052.18.
In Australia, the stock pared back morning gains to finish the session flat, as investors locked in profits ahead of the weekend. Gains in financials and the property sector were offset by losses in telecom, energy, and materials. Financials erased some of the morning gains buoyed on increasing optimism about a recovery in the global economy on profit taking. Property trusts bloated up on expectation moderating recession in the United States would boost credit flows. Miners, materials, and energy stocks tumbled on weaker commodity prices.
The benchmark S&P/ASX200 rose 1 point, or 0.03%, to 3,776.7, while the broader All Ordinaries added 2.50 points, or 0.07%, to 3,728.10.
On the economic front, The Australian Bureau of Statistics reported Friday that import and export prices for Australia both decreased in the quarter-ended March 2009. Import Price Index decreased 2.8%, driven by lower prices for petroleum and related products as well as fertilizers. Export Price Index fell 4.6% due to lower prices for metal ferrous ores and metal scrap, non-ferrous metals as well as petroleum and related materials. For the full year to the March 2009 quarter, the Import Price Index was up 14.6%, while the Export Price Index was up 42.8%.
In New Zealand, stock markets consolidated gains to end the week in the positive region. The benchmark index surged by almost 2% with gains in most of the stocks. The share market ended in the green patch for the fifth time in a row. At the closing bell, the benchmark NZX50 rose by 1.81% or 48.13 points to close at 2711.26. The NZX 15 advanced 1.83% or 90.49 points to close at 5028.86.
On the economic front, New Zealand’s annual inflation rate slipped to 3% in the March quarter as per the figures published by Statistics New Zealand today. The dip confirms the decline in inflation that gives the central bank ample space to go ahead with a rate cut. The Reserve Bank has progressively lowered the OCR, from 8.25% last July, to 3% now in order to support New Zealand’s economic condition that has witnessed the longest contraction in more than 30 years.
New Zealand’s consumer price index (CPI) increased 0.3% in the March 2009 quarter, the statistical department said today. For just the three months to March, the Consumers Price Index rose 0.3%, following a decrease of 0.5% in the December quarter. Higher prices for food and cigarettes were largely offset by lower prices for transport.
In South Korea, stock markets closed little lower as institutions cashed in profits from recent advances. The benchmark Korea Composite Stock Price Index (KOSPI) fell 7.72 points or 0.58% to 1,329.00.
On the economic front, sales at South Korea's major discount outlets and department stores improved in March compared to the previous month thanks to greater demand for groceries and luxury goods. According to the report released by the Ministry of Knowledge Economy the total sales at the three leading discount outlets dipped 0.8% on-year last month from the 20.3% plunge tallied for the month before.
In Taiwan, stock market showed a solid retreat, registering its biggest one-day decline since 15 January 2009, as investors locked in profits after a recent rally that pushed the market to a seven-month high. The main Taiex share index surrendered its upward rally towards 6000 points, under the heavy selling from the investors from the point of view of profit booking through the recent rally. Taiex plumped 241.79 points or 4.03%, closing the day at 5755.38, retreating from a near seven month high registered yesterday.
In Singapore, the stock market finished the session slightly higher, led by financials and properties on increasing optimism about a recovery in the global economy, following Wall Street’s overnight gains. The blue chip Straits Times Index rose 4.81 points, or 0.25%, to 1,896.56.
In Philippines, the stock market closed higher, bucked up by the hefty gains in the key heavy weight stocks supported by positive sentiments of investors following the key policy rate cut by the monetary board yesterday. Moreover, favorable inflation forecast kept the investor’s sentiments on the optimistic side. At the concluding bell, the benchmark index PSEi escalated 1.42% or 29.47 points to 2,094.13, while the All Shares index rose 1.50% or 20.12 points to 1,358.98.
On the economic front, the Bangko ng Pilipinas (BSP) yesterday cut its policy rates by 25 basis points as expected, citing easing inflation and the need to stimulate the economy. Overnight borrowing and lending rates were trimmed to 4.5% and 6.5%, respectively, a new 17-year low. It was the fourth rate cut since December last year and brought total reductions to 150 basis points.
The Bangko ng Pilipinas considered the latest baseline forecasts, which indicated a lower inflation path over the policy horizon, with average inflation expected to settle within the target ranges in 2009 and 2010. The Bangko ng Pilipinas announced a reduction in its 2009 inflation forecast to 3.42% from 3.5% previously, still within its target of 2.5-4.5% for the year. In addition, the Monetary Board considered that, on balance, the risks to inflation are skewed to the downside given expectations of weaker global and domestic demand conditions and a low probability of a significant near-term recovery in commodity prices.
In India, a sudden fall pushed the Sensex briefly into the red in late trade with index heavyweight Reliance Industries (RIL) and metal shares leading the slide. The market, however, came off the lows on rally in other heavyweights Infosys Technlogies, Larsen & Toubro and ICICI Bank. The BSE 30-share Sensex was up 75.69 points or 0.69% to 11,023.09. The S&P CNX Nifty was up 14.90 points or 0.44% at 3384.40.
Elsewhere, Malaysia's Kula Lumpur Composite index was up 0.4% or 3.90 points to 965.17 while Indonesia’s Jakarta composite index jumped by 0.6% or 9.70 points ending the day at 1634.79.
In other regional markets, European shares moved higher on Friday, with banks and oil majors fronting the advance as shares of UBS climbed 4.9% and shares of BP up 1.1%. The French CAC-40 index rose 1.3% to 3,076.01, the German DAX 30 index climbed 0.8% to 4,645.96 and the U.K. FTSE 100 index rose 0.6% to 4,080.05.
Sensex ends off highs; L&T surges 4.21%
The Sensex ended on a positive note led by realty, banking and IT stocks. It opened on a firm note with a gain of 120.31 points, at 11,067.71 on Friday in line with global cues. Later, it gained further ground on account of intense buying interest seen in frontliners touching a high of 11,339.47. As the day progressed, it lost its earlier gains by shedding most of its points on profit taking, touching a low of 10,946.25.
BSE Midcap and Smallcap index rose 0.98% and 0.57% respectively.
Amongst the sectoral indices, BSE Realty surged 3.13%, Bankex, IT, Capital goods rose over 2% each, Power moved up 1.01%, while Metal was marginally down by 1.66%.
In overseas market, Asian stocks advanced, as earnings reports from Toshiba and JPMorgan Chase & Co. lifted confidence the global recession is easing. Nikkei rose 152.32 points, or 1.74%, to end at 8,907.58, Hang Seng index gained 18.28 points, or 0.12%, to close at 15,601.27 and Shanghai Composite declined 30.20 points, or 1.19%, to settle at 2,503.94.
European stocks fell, reversing earlier gains, led by Hammerson after the region`s third largest real estate investment trust by market value was downgraded at UBS. FTSE 100 rose 34.09% or 0.84% at 4,087.07, CAC 40 climbed 43.28 points, or 1.42%, to trade at 3,081.46 and DAX increased by 46.13 points, or 1%, to trade at 4,655.59. (4.20 p.m., IST)
The Sensex ended the day with a gain of 75.69 points, or 0.69% at 11,023.09 after touching a high of 11,339.47 and a low of 10,946.25. The broad-based NSE Nifty gained 14.90 points, or 0.44% at 3,384.40 after hitting a high of 3,489.85 and a low of 3,359.25
Major gainers in the 30-share index were Larsen & Toubro (4.21%), Infosys Technologies (3.86%), State Bank Of India(3.54%), ICICI Bank (3.53%), Reliance Energy (2.30%), and Housing Development Finance Corporation (2.25%).
On the other hand, Hindalco Industries (5.18%), Tata Steel (4.03%), Sterlite Industries (India) (3.12%), Tata Motors (2.86%), Sun Pharmaceutical Industries (2.48%), and ITC (1.93%) were the major losers in the Sensex.
Overall market breadth was positive. Out of the total 2,650 stocks traded at BSE, 1,362 advanced, 1,194 declined while 94 remained unchanged.
BSE Bulk Deals to Watch - Apr 17 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
17/4/2009 505200 EICHER MOTORS LTD. DEUTSCHE SECURITIES MAURITIUS LIMITED B 264033 209.69
17/4/2009 524608 FEM CARE PHA ANOOPJAIN S 18000 733.00
17/4/2009 531137 GEMSTONE INV SUDHA SHANTILAL SHAH B 20000 22.50
17/4/2009 531137 GEMSTONE INV PREM M PARIKH S 33700 22.50
17/4/2009 532717 INDOTECHTR EDELWEISS COMMODITIES AND ADVISORS LTD S 60913 318.94
17/4/2009 532081 K SERA SERA S V ENTERPRISES B 479267 10.56
17/4/2009 532081 K SERA SERA S V ENTERPRISES S 479267 10.56
17/4/2009 511131 KAMAN HSG NISHA SUMANJAIN B 93776 24.52
17/4/2009 531602 KOFF BR PICT NIDHIMAHENDRASHAH S 650000 2.87
17/4/2009 512559 KOHINORFOODS TEMPTATION FOODS LTD B 223668 52.35
17/4/2009 532725 SOLAR IND HDFC TRUSTEE CO LTD AC HDFC GROWTH FUND B 199747 205.00
17/4/2009 532725 SOLAR IND NOTZ STUCKI ET CIE S A AC ARUNA FUND S 200000 205.02
17/4/2009 521034 SOMA TEX IND S V ENTERPRISES B 211038 9.48
17/4/2009 521034 SOMA TEX IND S V ENTERPRISES S 211038 9.50
17/4/2009 512413 SPECTACLE HITESHBABUBHAIDOBARIYA B 372161 53.01
17/4/2009 512413 SPECTACLE HITESHBABUBHAIDOBARIYA S 305712 53.00
17/4/2009 512048 SPLASH MEDIA AMIT PATEL HUF B 18149 77.00
17/4/2009 512048 SPLASH MEDIA DAZZEL CONFINDIVE LTD S 9400 77.00
17/4/2009 511726 VIPUL LTD VAISHALLIARYA B 925000 25.00
17/4/2009 511726 VIPUL LTD ANALYSIS SEC S 941700 25.00
17/4/2009 531404 ZICOM ELE SE RELIANCE MUTUAL FUND RELIANCE LONG TERM EQUITY FUND B 488236 84.45
NSE Bulk Deals to Watch - Apr 17 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
17-APR-2009,ALOKTEXT,Alok Industries Limited,ADROIT FINANCIAL SERVICES PVT LTD,BUY,1129236,15.63,-
17-APR-2009,ALOKTEXT,Alok Industries Limited,GAJANAND STOCKBROKERS PVT LTD,BUY,1057375,15.65,-
17-APR-2009,ALOKTEXT,Alok Industries Limited,MATHRAN SECURITIES PRIVATE LIMITED,BUY,1906705,15.86,-
17-APR-2009,EICHERMOT,Eicher Motors Ltd,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,274386,208.58,-
17-APR-2009,GDL,Gateway Distriparks Limit,SUNDARAM BNP PARIBAS MUTUAL FUND A/C SUNDARAM BNP PARIBAS SE,BUY,1300000,70.00,-
17-APR-2009,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,BUY,2056926,133.32,-
17-APR-2009,KOHINOOR,Kohinoor Foods Limited,TEMPTATION FOODS LTD,BUY,274694,52.35,-
17-APR-2009,RELCAPITAL,Reliance Capital Limited,C D INTEGRATED SERVICES LTD,BUY,1553195,541.88,-
17-APR-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD,BUY,88569,776.38,-
17-APR-2009,RIIL,Reliance Indl Infra Ltd,CHANDARANA INTERMEDIARIES BROKERS P. LTD,BUY,80620,779.48,-
17-APR-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,100156,776.97,-
17-APR-2009,UNITECH,Unitech Ltd,CLSA (MAURITIUS) LIMITED,BUY,17200000,51.33,-
17-APR-2009,ADVANTA,Advanta India Limited,ACCOLADE PROPERTIES PVT LTD,SELL,97773,535.00,-
17-APR-2009,ALOKTEXT,Alok Industries Limited,ADROIT FINANCIAL SERVICES PVT LTD,SELL,1129236,15.69,-
17-APR-2009,ALOKTEXT,Alok Industries Limited,GAJANAND STOCKBROKERS PVT LTD,SELL,1057375,15.71,-
17-APR-2009,ALOKTEXT,Alok Industries Limited,MATHRAN SECURITIES PRIVATE LIMITED,SELL,134545,15.40,-
17-APR-2009,GDL,Gateway Distriparks Limit,INFRASTRUCTURE DEVELOPMENT FINANCE COMPANY LIMITED,SELL,2000000,70.00,-
17-APR-2009,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,SELL,2057571,133.44,-
17-APR-2009,RELCAPITAL,Reliance Capital Limited,C D INTEGRATED SERVICES LTD,SELL,1553195,542.06,-
17-APR-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD,SELL,88569,777.45,-
17-APR-2009,RIIL,Reliance Indl Infra Ltd,CHANDARANA INTERMEDIARIES BROKERS P. LTD,SELL,80620,777.89,-
17-APR-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,100156,777.81,-
Post Session Commentary - Apr 17 2009
The market erased most of its gains to end off the day’s high as profit booking emerged during final trading hours. Intense selling dragged the domestic bourses lower on the last trading day of the week. Earlier during initial trading, market exhibited strong gains on positive global cues and sustained buying by the foreign funds.
The Indian market took a sharp rebound from yesterday’s losses to start trading in green tracking firm cues from the global counterparts. The US stock markets on Thursday ended higher after a sharp choppy session backed by better-than-expected results from JPMorgan Chase and Google. Further, market continued to gain momentum on significant buying across the board. However, profit taking forced benchmark indices to pare most of gains during final trading. Lastly, market recuperates a bit after suffering a huge fall from its’ intraday high. BSE Sensex ended around 11,000 level and NSE Nifty around 3,400. From sectoral front, Reality, Bank, IT, Capital Goods, Teck and Power stocks witnessed most of the buying from these baskets. Mid Cap and Small Cap stocks were also able to gain market support. However, Metal, Pharma and Consumer Durable stocks remained out of favor.
Among the Sensex pack 15 stocks ended in green territory and 15 in red. The market breadth indicating the overall health of the market remained positive as 1362 stocks closed in green while 1194 stocks closed in red and 94 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 75.69 points at 11,023.09 and NSE Nifty ended up by 14.90 points at 3,384.40. BSE Mid Caps and Small Caps closed with gains of 37.87 and 22.57 points at 3,472.60 and 3,951.56 respectively. The BSE Sensex touched intraday high of 11,339.47 and intraday low of 10,946.25.
Gainers from the BSE Sensex pack are L&T Ltd (4.21%), Infosys Tech (3.86%), SBI (3.54%), ICICI Bank (3.53%), Reliance Infra (2.30%), HDFC (2.25%), Grasim Indus (1.58%), Tata Power (1.50%) and Bharti Airtel (1.44%).
Losers from the BSE Sensex pack are Hindalco (5.18%), Tata steel (4.03%), Sterlite Industries (3.12%), Tata Motors (2.86%), Sun Pharma (2.48%), ITC Ltd (1.93%), DLF Ltd (1.75%) and Maruti Suzuki (1.67%).
On the global markets front the Asian markets which opened before the Indian market, ended mixed. Hang Seng, Nikkei 225 and Straits Times index ended higher by 18.28, 152.32 and 4.81 points at 15,601.27, 8,907.58 and 1,896.56 respectively. However, Shanghai Composite and Seoul Composite lost 30.2 and 7.72 points at 2,503.94 and 1,329 respectively.
European markets which opened after the Indian market are trading green. In Frankfurt the DAX index is trading higher by 41.06 points at 4,650.52 and in London FTSE 100 is trading up by 28.27 points at 4,079.57.
The BSE Realty index gained (3.136%) or 65.75 points to close at 2,166.49 on hopes that lower rates will spur housing demand. Gainers are Unitech Ltd (21.34%), Mahindra Life (10.74%), Anant Raj (10%), Parsvnath (8.94%) and Penland Ltd (4.64%).
The BSE Bank index gained (2.93%) or 157.16 points at 5,526.33 on expectation of a further easing of the monetary policy by the RBI with headline inflation nearing to zero. Scrips that advanced are Allahabad Bank (10.09%), Indian Overseas Bank (9.74%), Axis Bank (7.04%), Canara Bank (5.94%) and Federal Bank (5.94%).
The BSE IT stocks advanced by (2.92%) or 69.83 points to close at 2,461.60. Major gainers are Parni Computer (8.28%), Oracle Fin (8.03%), HCL Tech (5.95%), Infosys Tech (3.86%) and NIIT Ltd (3.70%).
The BSE Capital Goods index also ended higher by (2.57%) or 196.64 points at 7,842.15. Thermax Ltd (7.35%), SKF India (6.19%), L&T Ltd (4.21%), Crompton Greaves (3.52%) and Suzlon Energy (3.29%) ended in positive territory.
The BSE Metal ended down by (1.66%) or 114.36 points at 6,790.76. Losers are Hindalco (5.18%), JSW Steel (4.35%), Tata Steel (4.03%), Steel Authority (3.96%) and Sterlite Industries (3.12%).
The BSE Pharma index dropped by (0.80%) or 24.38 points to close at 3,019.55. Main losers are Sunpha Adv (4.94%), Cipla Ltd (3.61%), IPCA Lab (2.58%), Sun Pharma (2.48%) and Lupin Ltd (1.53%).
Unitech closed higher by 21.34% after the real estate maker raised $325 million (Rs 1,575 crore) at Rs.38.50 per share through a qualified institutional placement (QIP) issue route, enabling it to service debt and develop affordable housing.
Power Finance Corporation ended up by 6.95%. The Company has posted a net profit of Rs 3905.838 million for the quarter ended March 31, 2009 as compared to Rs 2954.006 million for the quarter ended March 31, 2008. Total Income has increased from Rs 13668.527 million for the quarter ended March 31, 2008 to Rs 18192.720 million for the quarter ended March 31, 2009.
Larsen & Toubro Ltd zoomed 4.21% as the company expects its order inflow to grow by 25-35% in the fiscal year ending March 2010.
Tech Mahindra lost 4.26%. The company would pay a sum of Rs 1,756 crore before the deadline of April 21 for acquiring a stake of 31% in Satyam Computer. Tech Mahindra also received the approval from the Company Law Board on Thursday.
Maruti Suzuki lost 1.67%. The company will invest Rs 1,200 crore to replace engines of existing models with a new light-weight fuel-efficient one, which will conform to a new national emission standard to come in place next year.
Bank stocks lead rally
Easing concerns about the global economy and reports of near-normal monsoon in India this year helped stocks edge higher in what was a volatile trading session. The market rose for the sixth week in a row. The Sensex reclaimed the 11000 mark after the market dipped into the red for a brief period in mid-afternoon trade on slide in index heavyweight Reliance Industries (RIL) and some metal shares.
Index heavyweights Infosys Technlogies, Larsen & Toubro and ICICI Bank, surged. The BSE 30-share Sensex rose 75.69 points or 0.69%
Five out of 12 sectoral indices on BSE were in the red. Market breadth, which was strong throughout the session, lost steam in late trade. By the end of the day, there were 1362 gainers as against 1194 losers on BSE. A total of 94 shares were unchanged.
Government's forecast that the South West monsoon, critical to the country's $240 billion agricultural economy, will probably be near normal this year, supported the market at lower level. Rains in the June-September rainy season will probably be 96% of the average between 1941 and 1990, the New Delhi-based India Meteorological Department said in a statement today, 17 April 2009. Actual rainfall can be five percent more or less than the forecast, the bureau said. The monsoon outlook is most widely watched indicator because India's 235 million farmers represent about 20% of the $1.2 trillion economy.
The market was volatile. After a sharp surge in early afternoon trade, the market cut gains later. The market firmed up again in afternoon trade as investor sentiment was strong on sustained buying by foreign funds. Profit taking ahead of the weekend pulled the market sharply lower in mid-afternoon trade. The market cut losses in late trade on forecast of a near-normal rains this year.
Foreign funds were net buyers in Thursday's trade despite a near 3% fall in the barometer index BSE Sensex on that day. Foreign institutional investors (FIIs) bought shares worth a net Rs 395.90 crore on Thursday, 16 April 2009, lower than Rs 772.20 crore on Wednesday, 15 April 2009. FII inflow in April 2009 totaled Rs 3,488.10 crore (till 16 April 2009). FII outflow in calendar year 2009 totaled Rs 3,183.60 crore (till 16 April 2009).
Meanwhile, the government has reportedly postponed its largest auction of oil and gas fields after confusion about a tax holiday for natural gas production and the ongoing national elections
European markets were trading firm after a choppy start. Germany's DAX index rose 1.31%. France's CAC 40 was up 1.67%. UK's FTSE rose 1.33%
The European central bank's President Jean-Claude Trichet said Friday that the ECB would do what was necessary to restore confidence in the global economy. Trichet said the central bank would decide on non-standard policy steps in May, but that it was important not to create expectations.
Asian shares ended mostly in green on Thursday led higher by technology stocks after their US peers gained on hopes for better demand and some stability in the economy there. Key benchmark indices in Hong Kong, Indonesia, and Singapore were up by 0.12% to 0.60%. But key indices in South Korea and Taiwan were down 0.58% to 4.03%.
Japan's Nikkei 225 was up 1.74% after consumer confidence in Japan climbed in March 2009. However, Bank of Japan Governor Masaaki Shirakawa said Friday the Japanese economy is worsening and the downturn has yet to run its course.
China's Shanghai Composite was down 1.19%. Chinese industrial production expanded by 8.3% in March 2009 from a year earlier, up from 3.8% in the first two months. The data was released by the statistics bureau yesterday, 16 April 2009, in Beijing.
Trading in US index futures showed the Dow could rise 19 points at the opening bell on Friday, 17 April 2009. US index futures rose as General Electric and Citigroup both beat analyst estimates on their first-quarter results.
Wall Street gained Thursday amid hopes for an economic bottom in the US. US jobless claims declined. The number of people filing new claims for unemployment insurance in the week to 11 April 2009 fell to 6,10,000, the lowest number of new claims since late January 2009 and well below the 6,55,000 economists expected.
The BSE 30-share Sensex was up 75.69 points or 0.69% to 11,023.09. At the day's high of 11,339.47, the Sensex rose 392.07 points in early afternoon trade. At the day's low of 10,946.25, the Sensex fell 1.15 points in the late trade.
The S&P CNX Nifty was up 14.90 points or 0.44% at 3384.40. Nifty April 2009 futures were at 3386.50, a premium of 2.1 points compared to the spot closing. Turnover in NSE's futures & options (F&O) segment was Rs 75438.49 crore lower than Rs 78509.17 crore on Tuesday, 15 April 2009.
The BSE Mid-Cap index outperformed the Sensex, rising 0.98%. The BSE Small-Cap index underperformed the Sensex, rising 0.57%.
The BSE clocked a turnover of Rs 5555 crore, lower than Rs 7149.45 crore on 16 April 2009.
The BSE PSU index (up 0.86%), the BSE Power index (up 1.01%), the BSE Capital Goods index (up 2.57%), the BSE IT index (up 2.92%), the Bankex (up 2.93%), and the BSE Realty index (up 3.13%), outperformed the Sensex.
The BSE Auto index (up 0.15%), the BSE Oil & Gas index (down 0.29%), the BSE FMCG index (down 0.64%), the BSE Consumer Durables (down 0.73%), the BSE Healthcare index (down 0.80%), and the BSE Metal index (down 1.66%), underperformed the Sensex.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.09%, extending losses for the second sessions in a row. The stock had lost 4.88% in the previous session on profit taking. Earlier the stock had risen 20.44% in eight straight sessions to Rs 1825.55 on 15 April 2009 from Rs 1515.70 on 30 March 2009. The scrip has the highest weightage on the Sensex. The company recently started pumping gas from the Krishna Godavari (KG) which is estimated to add close to $2 billion to the companys profit at peak production levels.
Delhi based realtor Unitech soared 21.34% on reports the company raised nearly $325 million by selling fresh shares to institutional investors via a qualified institutional placement (QIP) on Thursday. The shares were placed at Rs 38.50 each.
Mahindra Lifespace Developers (up 10.74%), Puravankara Projects (up 9.73%), Parsvnath Developers (up 8.94%), HDIL (up 3.42%)m and Sobha Developers (up 2.35%), were other gainers in the realty sector.
However, DLF (down 1.75%), Ansal Properties & Infrastructure (down 3.67%), and Indiabulls Real Estate (down 5.05%), were losers from the realty sector.
India's largest engineering and construction firm by revenue Larsen & Toubro rose 4.21% as the company expects its order inflow to grow by 25-35% in the year ending March 2010 (FY 2010). The company said during trading hours on Thursday new orders grew 24% to Rs 52000 crore in the financial year that ended on 31 March 2009.
Wind-turbine maker Suzlon Energy spurted 3.29%. The company is reportedly seeking to reschedule payments to Portugal's Martifer SGPS SA for buying a 22.4% stake in German unit REpower Systems AG.
Suzlon had fallen more than 18% on Thursday, on reports the company faces new problems over blades for a project in China. The company, however, on Thursday denied media reports. Suzlon clarified that blades referred to in the reports are in testing stage and their production has not started yet, the company's chief operating officer (COO) Sumant Sinha had said.
Bharat Heavy Electricals (up 1.20%), BEML (up 1.52%), Areva T&D (up 2.61%), ABB (up 2.94%), Crompton Greaves (up 3.52%), SKF India (up 6.19%), and Thermax (up 7.35%), were the other major gainers from the capital goods sector.
India's largest private sector power utility Reliance Infrastructure soared 2.30%. As per recent reports, Reliance Infrastructure has been selected by Power Finance Corporation to act as IT implementation agency for state electricity boards (SEBs). This would enable the company to access Rs 10000-crore projects from the SEBs.
State-run power transmission utility Power Grid Corporation of India rose 2.96% after 20 lakh shares changed hands in a block deal on NSE at Rs 96.25 each.
Banking shares were in demand after US bank JPMorgan Chase & Co on Thursday, posted a better-than-expected quarterly profit and fuelled hopes the world banking sector was stabilizing. A further fall in bond yields also aided rally in bank shares.
India's largest commercial bank by branch network State Bank of India rose 3.54% on reports its credit growth could rise 25% in 2009-10 even as the banking sector may see loan growth of 19-20%.
O.P. Bhatt, Chairman, State Bank of India said with increase in efficiency and opening of more number of branches, SBI should be able to achieve higher growth figure. SBI, which has the largest network of branches at over 11,111, added 1,600 branches in 2008-09. The bank is planning to add another 800-1,000 branches in 2009-10, with the majority in rural and semi-urban areas.
Private sector bank and Sensex pivotal ICICI Bank rose 3.53%. It has the fourth highest weightage of 6.05% on the Sensex.
HDFC Bank (up 0.36%), Kotak Mahindra Bank (up 0.99%), Union Bank India (up 2.56%), Canara Bank (up 5.94%), Axis Bank (up 7.04%), and Allahabad Bank (up 10.09%), were the other major banking sector gainers.
At 13:30 IST, the 6.05% 2019 government bond yield was at 6.40%, off its early low of 6.36%, which was its lowest since 16 March 2009. It had ended at 6.43% on Thursday. It may be recalled that many banks had reported robust Q3 December 2008 results on the back of treasury gains as bond prices soared. Bond yields and bond prices are inversely related.
Power sector lender Power Finance Corporation rose 6.95% after its net profit rose 32.22% to Rs 390.58 crore on a 33.09% rise in operating income to Rs 1819.27 crore in Q4 March 2009 over Q4 March 2008.
Brokearge Motilal Oswal Financial Services jumped 2.24% after the scrip entered the S&P CNX 500 index, replacing RSWM, in the broad-based index.
India's second largest software outsourcer by sales Infosys Technologies rose 3.86% on bargain hunting after it fell 5.96% in past three session to Rs 1341.30 on 15 April 2009 from Rs 1426.45 on 9 April 2009. The stock had tumbled after the company issued a weak guidance for the year ending March 2010 (FY 2010). It has the second highest weightage of 8.33% on the Sensex.
Infosys has forecast a 3.1% to 6.7% decline in revenue to between $4.35 billion and $4.52 billion as per US GAAP for the year ending March 2010 (FY 2010). The company forecast a 9.5% to 13.6% decline in consolidated earnings per American Depositary Share in the range of $ 1.91 and $ 2.00 for FY 2010. The pricing for the quarter ended March 2009 declined by 3%, S.D.Shibulal, chief operating officer, Infosys said in a statement.
Patni Computer (up 8.28%), Oracle Financial Software Services (up 8.03%), HCL Technologies (up 5.95%), NIIT Technologies (up 5.29%), and TCS (up 0.33%). However, India's third largest software outsourcer by sales Wipro fell 0.85%.
Steel stocks fell on profit selling after they spurted in past few sessions. India's largest steel maker by sales Tata Steel fell 4.03%. It had lost 8.25% on Thursday after the stock rose 49.55% in eight consecutive sessions to Rs 293.35 on 15 April 2009 from Rs 196.15 on 30 March 2009. Steel Authority of India (down 3.96%), and JSW Steel (down 4.35%), were the other steel majors that slipped.
India's largest aluminium maker by sales Hindalco Industries slipped 5.18%. According to recent reports, Hindalco is actively considering scaling down production of alloy wheels at its Silvassa unit due to low demand from the auto industry for premium products. Aluminium April futures fell 0.90% on the Multi Commodity Exchange at 15:30 IST.
India's largest copper maker by sales Sterlite Industries tumbled 3.12% after copper April futures fell 0.99% on the Multi Commodity Exchange at 15:30 IST.
Steel pipes maker Welspun Gujarat Stahl Rohren rose 0.51% after falling 1.97% in the afternoon based on reports the company is expected to post yet another drop in quarterly net profit, despite rising sales, as higher interest and falling prices put pressure on margins.
India's largest passenger car maker by sales Maruti Suzuki fell 1.67%. The stock had risen 5.47% in past three session to Rs 851.55 on 16 April 2009 from Rs 807.35 on 9 April 2009.
India's largest truck maker by sales Tata Motors tumbled fell 2.89%. It had fallen 13.50% on profit selling after it rose 56.35% in six consecutive sessions to Rs 281.20 on 15 April 2009 from Rs 179.85 on 1 April 2009.
Commercial vehicle maker Ashok Leyland fell 0.71%. However, auto shares like Mahindra & Mahindra (up 0.10%), Escorts (up 2.07%), TVS Motor Company (up 2.30%), Hero Honda Motor (up 2.81%), gained.
Telecom stocks were in demand after GSM technology based mobile service providers added a record 10.8 million subscribers in March 2009. Bharti Airtel (up 1.44%), 0Reliance Communications (up 0.30) and Idea Cellular (up 2.37%), edged higher.
Idea Cellular added 1.42 million Global System for Mobile communications (GSM) users in March 2009. Bharti Airtel added 2.81 million GSM users in March 2009 compared to 2.73 million in February 2009. Reliance Communications, which has a much larger presence with phones using the competing standard CDMA, added 4,00,223 GSM subscribers in March 2009.
Sugar shares extended recent gains on reports retail sugar prices may hit Rs 30 per kilogram from current Rs 28.50 on acute shortage of cane. DCM Shriram Industries (up 6.61%), Simbhaoli Sugars (up 5%), Bajaj Hindustan Sugar (up 3.38%), Triveni Engg Industries (up 2.99%), Balrampur Chini (up 1.88%), EID Parry (up 1.79%), and Shree Renuka Sugars (up 1.36%), galloped.
The reason for shortage of sugar is attributed to shortage of cane, a raw material used in production of sugar. In response to price rise government may hike quota release for Q1 June 2009. The government, recently waived import duty on both raw and refined sugar to avert any rise in the price of this politically-sensitive commodity. In the wholesale markets, sugar prices have shot up by Rs 30 per quintal in the last fortnight to Rs 2,700-2,750 per quintal in Delhi. The rise in sugar prices stand to improve the operating margins of sugar producers.
Private sector airliner Jet Airways India rose 1.34% on reports the company is restructuring its business operations that would trim its workforce and enhance efficiency.
Security products maker Zicom Electronic Security Systems was locked at 5% upper limit after a block deal of five lakh shares was executed on BSE at Rs 84.45 per share.
Pre Session Commentary - Apr 17 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened with phenomenal gains and also the US markets closed in green yesterday. After substantial losses yesterday we can expect some bounce back on frontline stocks today. However at a broader level buying sentiment is less likely to sustain.
On Thursday, domestic markets finally ended its upward trend to close with losses. Since the opening bell the markets exuded a sense of cautious trading. The sentiments were weak and the selling pressure was further ignited after the post mid session. Despite the phenomenal positive trade of the European markets the Asian markets witnessed a lackluster trade. There was lack of buying interest across the broader level and traders were cautious on their fresh positions. The inflation numbers were very discouraging as it is heading towards the zero level. The wholesale price index for the week ended April 4 recorded at 0.18% as against 0.26% in the previous week. In the Sectoral indices Realty, Metal, CG and Oil & Gas faced huge selling pressures as they fell by 9.16%, 6.97%, 4.95% and 4.50% respectively. However on the other safe heaven FMCG closed with a gain of 1.92%. Smallcap and Midcap stocks were brutally shattered as they had gained enough in previous trading sessions. During the session we expect the markets to be trading volatile.
The BSE Sensex closed with loss of 337.33 points at 10,947.40 and NSE Nifty ended with huge loss of 114.65 points at 3,369.50. BSE Mid Caps and BSE Small Caps ended with losses of 163.16 points and 194.46 points at 3,438.73 and 3,928.99 respectively. The BSE Sensex touched intraday high of 11,367.23 and intraday low of 10,900.47.
On Thursday, the US stock markets closed in green. After an early choppy trade the stocks at broader level started northward movement. The Financial stocks were in charm after the JP Morgan Chase announced its first quarter earnings at $0.40 per share which was far above the expected $0.32 per share. In the macro economic scenario the latest jobless claims data suggest that the pace of layoffs is slowing, but that it isn''t getting any easier to find work. Initial claims for the week ending April 11 totaled 610,000, which is down more than expected from the prior week, but continuing claims climbed more than expected to a new record of 6.02 million. On the other hand housing sector starts disappointed investors hoping to find signs of a recovery in home building. Housing starts for March totaled 510,000, which was below the 540,000 starts that were expected and down from the prior month. Meanwhile, building permits in March totaled 513,000, which is below the 549,000 permits that were expected, and down from February. US light crude oil futures for May surged 1.4% at $49.95 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) inclined by 95.81 points to close at 8,125.43. The NASDAQ Composite (RIXF) index surged 43.64 points to close at 1,670.44 and the S&P 500 (SPX) inclined by 13.24 points to close at 865.30.
Today major stock markets in Asia are trading positive. Shanghai composite is low by 22.35 points at 2,511.79. Hang Seng is trading high by 318.13 points at 15,901.12 followed by Japan''s Nikkei which is high by 185.20 points at 8,940.46, Strait Times is up by 17.59 points at 1,909.43. While Taiwan Weighted is low by 40.96 points at 5,956.21 and Seoul Composite points is up by 8.25 points at 1,344.83 respectively.
Indian ADRs ended mixed. In technology sector, Infosys ended up by 2.57% along with Wipro by 3.23%. Further, Patni Computers gained 2.74% while Satyam closed lower by 2.04%. In banking sector ICICI Bank lost 1.72% whereas HDFC Bank advanced by 1.50%. In telecommunication sector Tata Communication and MTNL dropped by 2.77% and 3.62% respectively. Sterlite Industries decreased by 2.04%.
The FIIs on Thursday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 4,062.60 Crore and gross debt purchased stood at Rs 383.50 Crore, while the gross equity sold stood at Rs 3,290.40 Crore and gross debt sold stood at Rs. 669.00 Crore. Therefore, the net investment of equity and debt reported were Rs 772.20 Crore and Rs (285.50) Crore respectively.
On Thursday, the Rupee closed at Rs. 49.76, 10 paise weaker than its previous close of Rs. 49.66. The local currency closed weaker due to fall in domestic markets creating apprehensions of foreign capital inflow.
On BSE, total number of shares traded were 70.70 Crore and total turnover stood at Rs 7,149.45 Crore. On NSE, total number of shares traded was 148.41 Crore and total turnover was Rs 21,128.74 Crore.
Top traded volumes on NSE Nifty – Unitech with 157895258 shares, Suzlon Energy with 87077729 shares, DLF with 24617024 shares, SAIL with 23880649 shares followed by Rel Capital with 21513929 shares.
On NSE Future and Options, total number of contracts traded in index futures was 1251577 with a total turnover of Rs 20,716.69 Crore. Along with this total number of contracts traded in stock futures were 671570 with a total turnover of Rs 25,181.24 Crore. Total numbers of contracts for index options were 1770593 with a total turnover of Rs 30,483.07 Crore and total numbers of contracts for stock options were 52353 and notional turnover was Rs 2,127.90 Crore.
Today, Nifty would have a support at 3,283 and resistance at 3,441 and BSE Sensex has support at 10,810 and resistance at 11,198.
Market may recover on positive cues from global stocks
The market may recover after Thursday's (16 April 2009)'s 3% slide on firm global equities. The preliminary prediction of the South West monsoon by the India Meteorological Department (IMD) will influence shares in FMGC, auto and cement sectors which derive a substantial revenue from the rural markets. IMD will today give a preliminary forecast of the South West monsoon this year.
Political uncertainty may cap near term upside on the bourses. The month-long parliamentary elections began on Thursday, 16 April 2009. Poll estimates point a fractured mandate.
As per the provisional data released by the stock exchange, foreign funds bought shares worth a net Rs 479.09 crore on Thursday. FIIs have made heavy buying in the past few weeks after heavy sales in the first two months of calendar 2009. There was a huge outflow of Rs 1124.24 crore by domestic institutional investors (DIIs) on Thursday.
Asian shares were higher Friday,17 April 2009, led by technology stocks
after their US peers gained on hopes for better demand and some stability in the economy there. Wall Street gained Thursday amid hopes for an economic bottom in the US.
But trading in US index futures showed the Dow could fall 29 points at the opening bell on Friday.
Market may witness pull-back
Overnight gains in the US markets and a sharp rise in several Asian indices in the ongoing trading session may help the domestic indices rebound from yesterday's losses. However, the market may exhibit caution owing to lack of clarity, higher volatility and the Sensex breaking the psychological level of 11000 towards the close yesterday. Among the indices, the Nifty could test higher levels at 3410 and 3450, and has a supports at 3320. The Sensex has a likely support at 10800 and may face resistance at 11100.
US indices gained onThursaday, with the major gauges touching multi-month highs on JPMorgan Chase's better-than-expected results and anticipation about Google's profit report. While the Dow Jones flared up by 96 points at 8,125, the Nasdaq moved up by 44 points at 1,670.
Most of the Indian ADRs traded firm on the US bourses. Rediff led the pack with gains of 12.24% while Wipro, Infosys, Patni Computers and HDFC Bank gained around 1-3% each. However, Satyam, Dr Reddy's Lab, Tata Motors, ICICI Bank, MTNL and VSNL slipped around 1-3% each
Crude oil prices edged higher, the US light crude oil for May delivery moved up by 73 cents at $49.98 a barrel. In the commodity segment, the Comex gold for June delivery slipped by $13.70 to settle at $879.80 an ounce.
Daily News Roundup - Apr 17 2009
Reliance Industries is set to start selling fuel in the country by next week from its Jamnagar unit following the withdrawal of refinery’s EOU status. (ET)
Unitech has raised Rs16.2bn at Rs38.5 per share through a QIP. (ET)
L&T anticipates 25-35% growth in order inflows in the current fiscal. (FE)
PNB is planning to expand in Australia and Saudi Arabia. (FE)
FIs object to Pfizer’s open offer to increase stake in its Indian arm from 41% to 75%. (ET)
SBI has agreed to lend Vodafone Essar Rs100bn to finance the company’s entry into 3G telecom services and expansion of broadband operations. (BS)
Tata Communications has joined an international consortium to build a US$600mn West African cable system. (ET)
Vedanta Resources is leading the race for Zambia’s Luanshya copper mines. (ET)
Indian Hotels plans to open 12 new properties in the next 2-3 years under its Gateway brand. (BS)
Essar Oil Ltd has shut its refinery in Gujarat for maintenance for 18 days. (BS)
JSW Steel is likely to finalize the long term contracts for supply of coking coal in FY10 by April end. (BS)
KKR has initiated talks with United Spirits to pick up a minority stake. (ET)
Jet Airways to recast its operations and trim its workforce to enhance efficiency. (ET)
Hindustan Zinc has raised zinc prices by 5% to Rs87,600 per ton. (BL)
Punj Lloyd has secured 3 contracts worth Rs3.1bn from the Bangalore metro rail corporation for construction 8 stations. (BL)
HPCL, BPCL and IOC have decided to form a JV with Mumbai Airport for distribution of ATF to aircrafts. (ET)
Nokia has entered into a JV with HCL Infocomm to set up exclusive retail outlets for selling handsets and servicing customers directly in India. (ET)
The long term fuel supply agreement between CIL and NTPC will be signed by the end of this month. (ET)
Areva T&D received an order from PGCIL for delivering two 500MVA power transformers by Q3 FY10. (BL)
Arvind Ltd has rescheduled its long term debt worth Rs9bn. (BS)
Bhushan Steel gets SEBI nod for Orissa Sponge open offer. (ET)
Natco Pharma has entered into an agreement with Dr Reddy’s for manufacture and supply of value added generic oncology drugs for global markets. (BL)
Promoter stake in GHCL dips to 18% from 38% in past 3 months. (BS)
Rallis India expects its Dahej plant to become operational in April-May 2010 and generate Rs4-5bn revenue over 3-4 years. (FE)
Inflation for the week ended April 4 dips to 0.18%. (ET)
India’s iron ore exports increased 17% to 12.6mn tons in February 2009. (ET)
Steel production and consumption grew at 1.2% yoy and 3.8% yoy respectively in Jan-March quarter. (ET)
Domestic fuel sales are likely to rise by 4-5% in the current fiscal, as per petroleum secretary. (ET)
Sugar prices may hit Rs30/kg on acute shortage of cane. (ET)
Petroleum production consumption grew by 6.9% in March 2009. (BS)
Bulls looking to dominate again
If everything seems under control, you're not going fast enough.
After a sudden setback on Thursday, the bulls are looking forward to accelerate the pace of gains. Healthy cues from global markets will surely help their cause. US stocks rose, with the Nasdaq hitting a 5-month high, after JPMorgan came out with encouraging results. Google too has managed to top Wall Street earnings estimates. Nokia shares gained despite its profit sinking 82%. The mobile handset titan says demand is stabilising. Shares in Europe too advanced. In emerging markets, Brazil’s Bovespa has reached a six-month peak. Markets in Asia have opened higher as well.
The positive global trend will have its rub-off on the Indian market too. However, the unpredictability associated with elections and fear of sudden corrections, like the one on Thursday, could cap gains. Technically, the 200DMA would continue to be a key resistance. No major results are in store for today, except PFC. Next week we will have the RBI announce its annual policy and the central bank may trim key rates as inflation is a non-issue. But, the event may not have much of a bearing on sentiment.
FIIs were net buyers in the cash segment on Thursday at Rs4.79bn while the local institutions chose to offload shares worth Rs11.24bn. In the F&O space, the foreign funds were net sellers at Rs7.38bn. On Wednesday, FIIs were net buyers at Rs7.72bn in the cash segment.
PFC, PSI Data Systems, Logix Micro and Sonata Software will announce their results today.
US stocks rallied on Thursday with the major stock indices touching multi-month highs on better-than-expected results from JPMorgan Chase, Google and Nokia.
The Nasdaq Composite index added 44 points, or 2.7%, ending at the highest point since Nov. 5, 2008. The Dow Jones Industrial Average added 96 points or 1.2% and the S&P 500 index gained 13 points, or 1.6%. Both closed at their highest points since Feb. 9.
After seesawing through the morning, US stocks began making a bigger move higher in the afternoon, before spiking near the close.
Stocks gained on Wednesday after a Federal Reserve report on the economy added to hopes that the pace of the slowdown is easing. Such hopes have helped bolster the market for nearly six weeks. Since hitting 12-1/2 year lows on March 9, the S&P 500 has risen 25% as of Wednesday's close.
JPMorgan Chase reported a higher-than-expected profit of $2.1 billion, although results were weaker than a year earlier. The company benefited from strength in its investment and consumer banking divisions, but also posted $10 billion in credit costs. JPMorgan shares gained 2%.
Earlier in the week, Goldman Sachs also reported weaker quarterly results that nonetheless topped estimates. Wells Fargo last week forecast that it would report a $3 billion profit.
Nokia reported a more than 90% drop in operating profit versus a year ago amid the global slowdown in the mobile phone market. However, results were expected to be worse and shares rallied 11.4%.
AIG said it will sell its U.S. car insurance business to a unit of Zurich Financial Services for $2 billion, as it begins the process of paying back the billions its received in federal aid. Shares gained 5.6%.
Hewlett-Packard (HP) rose to a two-month high after it took the top spot in the nation’s personal-computer market and industry shipments decreased at a slower rate in the U.S. than the rest of the world.
U.S. PC shipments dropped at a slower rate than the rest of the world, falling 3.1 percent to 15 million last quarter, Framingham, Massachusetts-based IDC said. Stamford, Connecticut- based Gartner said U.S. shipments were little changed.
New home construction slumped almost 11% last month, falling to the second lowest level on record, indicating that the housing market has not yet bottomed. March housing starts fell to an annual rate of 510,000 units versus a revised 572,000 units in the previous month. Economists had forecast starts would rise to 540,000 units.
Building permits, a measure of builder confidence, fell to a 513,000 annual unit rate from a revised 564,000 unit rate in the previous month. Economists expected 549,000 permits.
The number of Americans filing new claims for unemployment fell to 610,000 last week from a revised 663,000 the previous week. Economists expected 658,000 new claims. Continuing claims, the number of people seeking benefits for a week or more, rose to 6.02 million, an all-time high.
The April Philadelphia Fed index improved to a decline of negative 24.4 from negative 35.0, versus forecasts for a reading of negative 32.
Treasury prices slumped, raising the yield on the benchmark 10-year note to 2.83% from 2.76% on Wednesday.
In currency trading, the dollar gained versus the euro and the yen.
U.S. light crude oil for May delivery rose 73 cents to settle at $49.98 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery fell $13.70 to settle at $879.80 an ounce.
Friday brings quarterly results from Citigroup and General Electric (GE), both Dow components. Also, the University of Michigan consumer sentiment index is due for release shortly after the start of trading.
European shares too advanced on Thursday. The pan-European Dow Jones Stoxx 600 index rose 1.7% to 193.82. Stronger-than-expected quarterly results from U.S. banking giant J.P. Morgan Chase helped banks extend early gains.
UK's FTSE 100 index rose 2.1% to 4,052.98, the French CAC-40 index advanced 1.8% to 3,038.18 and Germany's DAX 30 index climbed 1.3% to 4,609.46.
Indian market snapped an eight day long winning streak as bears returned on Dalal-Street with a vengeance. It was a day of wild gyrations as the Sensex fluctuated over 350 points and the Nifty swung over 150 points between their intra-day highs and lows.
High volatility was accompanied by huge trading volume as total market turnover crossed 1 lakh crore for second consecutive trading session.
Traders and investors preferred to book some profits even as a month-long election kicked off today. The jury’s still out on which formation will take the throne at the Centre. The counting of votes will take place on May 13. Given the high degree of uncertainty about the outcome of the Lok Sabha polls, an unexpected verdict could spoil the party for bulls.
The BSE Sensex declined 337 points, or 3%, to close at 10,947 and the NSE Nifty ended lower by 114 points, or 3.2% at 3,369.
Among the 30-components of Sensex, 24 ended in negative terrain and 6 ended in the green. Among the major losers were, Tata Motors, Reliance Infra, DLF, Tata Steel, JP Associates, Hindalco and Ranabxy.
However, bucking the negative trend were ITC, Wipro, Sun Pharma, Hindustan Unilever and Maruti.
Shares of Kingfisher Airlines declined by 12% to Rs35. According to reports, the company has sought 10 more days to pay IOC its jet fuel dues. The scrip touched an intra-day high of Rs42.4 and a low of Rs34.7 and recorded volumes of over 2.2mn shares on BSE.
Shares of Hero Honda gained by 1.2% to Rs1080. According to reports, the Group pulled out of JV with Daimler to manufacture commercial vehicles in India. The scrip touched an intra-day high of Rs1097 and a low of Rs1067 and recorded volumes of over 0.12mn shares on BSE.
Suzlon Energy is reportedly facing renewed problems over faulty blades, according to a report published in the Wall Street Journal (WSJ). This time it is for a project in China's Shandong province. It may be recalled that last year, Suzlon had faced some client-side issues with blades in the US.
According to the Wall Street Journal (WSJ), Suzlon is contracted to supply blades for 75 turbines in a project being managed by Germany's RePower Systems AG, with an option for 75 more. RePower rejected the prototype and ordered the equipment from elsewhere, the WSJ says.
Suzlon owns 74% of RePower although it has to manage it at arm's length because of German laws protecting minority investors. RePower lost 6mn euros because of the problems with the first batch and Suzlon said it was working vigorously on testing the latest blades, according to the WSJ.
Shares of Suzlon plunged by over 18% to Rs56 after hitting an intra-day high of Rs73 and an intra-day low of Rs53.5 recording volumes of over 20.8mn shares on BSE.
Punj Lloyd announced that it secured three projects aggregating to Rs3.08bn from Bangalore Metro Rail Corporation for construction of eight elevated metro stations in Bangalore.
The stock however ended 8% lower at Rs121 after it touched an intra-day high of Rs136 and a low of Rs118 and recorded volumes of over 4.2mn shares on BSE.
The party for the bulls was cut short on Thursday with bears returning with a vengeance. And, given the high degree of uncertainty about the outcome of the Lok Sabha polls, an unexpected verdict could further dampen the sentiments.
Bullion metals shed some shine
Stronger than expected jobless claim report decrease the appeal of precious metals
Bullion metal ended lower on Thursday, 16 April, 2009. Prices fell as better than expected jobs data reduced the appeal of precious metals as an alternate source of investment.
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 Thursday, Comex Gold for June delivery fell $13.7 (1.5%) to close at $879.8 an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 1.5%. Year to date, gold prices are lower by 0.6%.
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 Thursday, Comex silver futures for May delivery fell 54.5 cents (4.3%) at $12.255 an ounce. Year to date, silver has climbed 7.7% this year. For 2008, silver had lost 24%.
The Labor Department reported today that initial claims for the week ending 11 April totaled 610,000, which is down more than expected from the prior week, but continuing claims climbed more than expected to a new record of 6.02 million. The latest jobless claims data suggested that the pace of layoffs is slowing, but that it isn't getting any easier to find work.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.
Prior to 2008, gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for June delivery closed lower by Rs 142 (0.99%) at Rs 14,140 per 10 grams. Prices rose to a high of Rs 14,328 per 10 grams and fell to a low of Rs 14,102 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 721 (3.4%) lower at Rs 20,372/Kg. Prices opened at Rs 20,951/kg and fell to a low of Rs 20,265/Kg during the day's trading.
Crude acquires little gains
Prices rise as jobless claims data in US check in better than expected
Crude oil rose on Thursday, 16 April, 2009 after jobless data in US showed that the rate of layoffs have decreased a bit in the last week. This increased overall optimism about the current economic scenario in the market and prices rose today.
Energy department had reported yesterday that crude inventories rose more than expected for the week ended 10 April, 2009. Earlier during the week, the International Energy Agency had lowered its forecast for this year's global oil demand.
On Thursday, crude-oil futures for light sweet crude for May delivery closed at $49.98/barrel (higher by $0.73 or 1.5%) on the New York Mercantile Exchange. During intra day trading, prices rose to a high of $50.48 and also fell to a low of $49.11. Last week, crude ended lower by 0.5%.
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 70% since then. Year to date, in 2009, crude prices are higher by 12.9%. On a yearly basis, crude prices are lower by 51%.
The Labor Department reported today that initial claims for the week ending 11 April totaled 610,000, which is down more than expected from the prior week, but continuing claims climbed more than expected to a new record of 6.02 million. The latest jobless claims data suggested that the pace of layoffs is slowing, but that it isn't getting any easier to find work.
The EIA had reported yesterday that crude inventories rose 5.6 million barrels in the week ended 10 April, 2009. Market was expecting an increase of 2.5 million barrels. At 366.7 million barrels, U.S. inventories stood at the highest level since September 1990.
EIA also reported that gasoline inventories fell by 900,000 barrels last week, as refineries reduced production, and distillate stockpiles, which include diesel and heating oil, fell by 1.2 million barrels. U.S. refineries operated at 80.4% of their operable capacity, the lowest level since September 2008. Meanwhile, total petroleum demand over the past four weeks fell by 5.2% from a year ago.
Paris based IEA reported earlier during the week that it is cutting its demand projection by 1 million barrels a day. After the latest revision, global oil demand this year is now forecast at 83.4 million barrels a day, which is 2.4 million barrels a day below the 2008 level.
Also at the Nymex on Thursday, May reformulated gasoline rose 2.75 cents, or 1.9%, to $1.4743 a gallon and May heating oil gained 2.08 cents, or 1.5%, to $1.4218 a gallon.
May natural-gas futures fell 9.4 cents, or 2.5%, to $3.599 per million British thermal units. EIA reported today that U.S. natural-gas inventories rose 21 billion cubic feet in the week ended 10 April, 2009. At 1,695 billion cubic feet, stocks were 438 billion cubic feet higher than they were last year at this time and 311 billion cubic feet above the five-year average.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for May delivery closed at Rs 2,601/barrel, higher by Rs 13 (0.5%) against previous day's close. Natural gas for April delivery closed at Rs 179.3/mmbtu, lower by Rs 4.2/mmbtu (2.3%).
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