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Thursday, May 07, 2009
Rupee recovers
The Indian rupee recovered yesterday's losses and was up by 35 paise to close at a two and a half month high of 49.26/27 against the dollar in line with a smart rebound in local equity markets amid sustained capital inflows.
In active trade at the Interbank Foreign Exchange (Forex) market, the domestic unit resumed higher at 49.30/32 a dollar
from its previous close of 49.61/62.
It later moved in the range 49.23-49.52 before closing the day at 49.26/27 a dollar.
Firm trends in Asian equity markets, including India, mainly boosted rupee sentiment. The Indian benchmark Sensex ended higher by over 164 points or 1.37 per cent after yesterday's fall of about 178 points.
Asian indices also ended firm while European markets resumed better on the back of favourable Wall Street advice.
The weakness of the dollar against most of the Asian currencies also helped rupee recovery.
Meanwhile, oil prices rose towards USD 58 a barrel today in Asia, extending gains to near six-month highs on investor expectations that global economic growth may begin to rebound by the end of the year.
The Reserve Bank of India (RBI) fixed the reference rate for the US dollar at Rs 49.46 and the euro at Rs 65.63. Rupee premiums on the forward dollar ended stable.
The benchmark six-month forward dollar premium payable in October ended at 65-1/2-67-1/2 paise from 66-1/2-68-1/2 paise
on Wednesday and the far-forwards maturing in April finished steady at its previous level of 107-109 paise.
In cross-currency trade, the Indian rupee rose against the pound sterling, the euro and the Japanese yen.
The rupee firmed up against the pound sterling at Rs 74.22/24 against its previous close of Rs 74.42/44 while improved further against the euro to Rs 65.54/56 from Rs 65.91/93.
It shot up against the Japanese yen to settle at Rs 49.60/62 per 100 yen from the last close of Rs 50.44/46.
Sensex closes firm; Sterlite zooms 13.78%
The Sensex ended on a firm note led by metal stocks, consumer goods, realty and banking stocks. It belled the day above 12,000 mark with a gain of 111.76 points, at 12,064.51 on reports that US bank stress tests will reassure investors. It proceeded to trade higher through the day on sustained buying interest seen in frontline stocks, touching a high of 12,143.95.
Secondline stocks also supported the sentiment. BSE Midcap and Smallcap index rose 2.75% and 2.66% respectively.
Amongst the sectoral indices, BSE Metal gained the most. The counter soared 8.22% followed by Consumer durables, which surged 3.72%, Realty and Bankex rose over 1% each, while FMCG declined 0.71%.
On global front, Asian stocks jumped to a seven-month high on better-than-estimated US and Australian jobs reports and an assurance from US Treasury Secretary Timothy Geithner that none of the country`s biggest banks are insolvent. Nikkei gained 408.33 points, or 4.55%, to end at 9,385.70, Hang Seng index advanced 383.32 points, or 2.28%, to close at 17,217.89 and Shanghai Composite went up 4.93 points, or 0.19%, to settle at 2,597.45.
European stocks rose, on speculation that banks don`t need as much capital as had been projected amid signs the worst of the recession may be over. FTSE climbed 105.29 points, or 2.39%, to trade at 4,501.78, CAC 40 gained 59.13 points, or 1.80%, to trade at 3,342.64 and DAX rose 73.18 points, or 1.50%, to trade at 4,953.89. (3.59 p.m., IST)
The Sensex ended the day with a gain of 164.19 points, or 1.37% at 12,116.94 after touching a high of 12,143.95 and a low of 11,981.13. The broad-based NSE Nifty climbed 58.85 points, or 1.62% at 3,683.90 after hitting a high of 3,692.05 and a low of 3,617.15.
Major gainers in the 30-share index were Sterlite Industries (India) (13.78%), Hindalco Industries (11.25%), Tata Steel (8.76%), Wipro (5.80%), Housing Development Finance Corporation (3.86%), and Maruti Suzuki India (3.72%).
On the other hand, Mahindra & Mahindra (2.83%), ACC (2.44%), Hindustan Unilever (1.68%), Grasim Industries (1.47%), NTPC (1.34%), and ITC (1.25%) were the major losers in the Sensex.
Overall market breadth was positive. Out of the total 2,616 stocks
JSW Steel May 2009 futures at premium
Turnover declines
Nifty May 2009 futures were at 3682.40, at a discount of 1.50 points as compared to the spot closing of 3,683.90. Turnover in NSE's futures & options (F&O) segment was Rs 48,471.10 crore, lower than Rs 57,634.57 crore on Wednesday, 6 May 2009.
JSW Steel May 2009 futures were at premium at 439.05 compared to the spot closing of 429.40.
Reliance Industries May 2009 futures were near spot price at 1916.15 compared to the spot closing of 1915.55.
State Bank of India May 2009 futures were near spot price at 1368.65 compared to the spot closing of 1369.50.
In the cash market, the S&P CNX Nifty gained 58.85 points or 1.62% at 3,683.90.
Asian Markets finds little stress ahead of Stress Test
Nikkei catch up regional rally while Hang Seng, Taiex, Shanghai notched gains for a sixth straight session
Stock market in Asian region closed mostly higher on Thursday, 7 May 2009, as investors cheered better-than-expected news about U.S. jobs and banks. Shares of financials and properties led the market on growing confidence about the global economic outlook, while exporters and automakers zoomed as yen softened against greenback.
On Wall Street, the stock markets closed modestly higher with financials out in front; particularly those whose capital needs were in the stress test discussion. The Dow Jones Industrial Average climbed 101.63 points, or 1.2%, to 8512.28, while the S&P 500 rose 15.73 points, or 1.7%, to 919.53. The Nasdaq edged up 4.98 points, or 0.3%, at 1759.10.
The day started on a positive note, as ADP estimated that there were 492,000 jobs lost in the private sector in April, well below the 645,000 expected and a downwardly revised 708,000 in March. Financials were at the forefront of advances. The Financial Selects Sector SPDR, which tracks the financial stocks in the S&P 500, and the KBW Bank Index were higher by 8% and 11.5%, respectively, a day before the release of the so-called stress test results.
In the commodity market, crude oil traded little changed near $56 a barrel after rising 4.6 percent yesterday on a smaller- than-expected increase in U.S. stockpiles and as equities advanced to a four-month high. Overall U.S. crude supplies rose to 375.3 million barrels last week, the highest since 1990, the Energy Department said.
Gasoline supplies fell 167,000 barrels to 212.4 million in the week ended May 1, the Energy Department report showed. Supplies of distillate fuel, a category that includes heating oil and diesel, rose 2.43 million barrels to 146.5 million last week, the highest since October 2006, according to the department.
Crude oil for June delivery fell 16 cents to $56.18 a barrel on the New York Mercantile Exchange at 10:41 a.m. in Sydney. Yesterday, the contract climbed $2.50 to settle at $56.34, the highest settlement since 14 November 2009.
Brent crude oil for June settlement increased $2.03, or 3.8%, to end yesterday's session at $56.15 on London's ICE Futures Europe exchange, the highest since 10 November 2009.
Gold traded little changed in Asia as investment demand faltered after gains in equities dimmed demand for the precious metal as an alternative investment. Gold for immediate delivery rose 0.1% to $911.79 an ounce at 9:51 a.m. Singapore time, up 2.9% for the week.
In the currency market, commodity currencies extend recent rally on better than expected employment data from Australia and New Zealand as well as strong rally in Asian stocks.
The Japanese yen softened against its most major counterparts on Thursday on speculation U.S. banks need less new capital than was projected, sapping demand for Japan's currency as a refuge from the global financial crisis. The Japanese currency quoted at 98.45 against the US dollar.
The Hong Kong dollar was trading at HK$ 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 shot up a US cent to a new seven-month high on Thursday after a surprise jump in employment threw into doubt the need for more interest rate cuts in the next few months. The Aussie soared as high as $US0.7563, compared to $US0.7468 before the data and a low of $US0.7333 on Wednesday. At the close, the dollar had pulled back to $US0.7519, but was still up 6% in the past seven sessions.
In Wellington trades, the New Zealand dollar got a lift today from better-than-expected unemployment data. The unemployment rate rose to a six-year high of 5 percent in the March quarter, but it was a smaller rise than economists forecast, which suggested to some that the Reserve Bank may not cut interest rates further. The NZ dollar rose from US58.30c to US59.10c on the news. It was back US58.85c by 5pm, which was still up from US57.75c yesterday.
The South Koran won ended at 1,262.3 won against the U.S. dollar, up 14.7 won from Wednesday's close, after the central bank said that the country's foreign exchange reserves rose by the largest monthly amount over three years in April to $212.48 billion.
The Taiwan dollar continued to rally further. The Taiwan dollar strengthened against the US dollar as it was trading higher at NT$ 33.1150, up by NT$ 0.650 from Wednesday's close of NT$33.180.
Coming back in equities, the Asian markets stretched their winning streak, with financials again leading as investors chose to look at the bright side of economic and earnings data while they await results of the stress tests on U.S. banks. Japanese shares surged, catching up as trading resumed for the first time this week after the Golden Week holidays. Hong Kong, Taiwanese and Chinese shares notched gains for a sixth straight session.
In Japan, the stock market finished the session sharply higher on the first day of trading after the country's "Golden Week" holidays, with broad based gain across the board, as investors cheered better-than-expected news about U.S. jobs and banks. Shares of financials and properties led the market on growing confidence about the global economic outlook, while exporters and automakers zoomed as yen softened against greenback.
The Nikkei 225 Stock Average index climbed 408.33 points, or 4.55%, to 9,385.70, while the broader Topix index climbed up 39.08 points, or 4.6% to 886.
On the economic front, the Bank of Japan said in the statement that the monetary base in Japan gained 8.2% in April, standing at 95.62 trillion yen, following a 6.9% annual gain registered in March. Banknotes in circulation were up 1% on year reaching to 76.48 trillion yen, while coins in circulation eased 0.2% to 4.52 trillion yen. Current account balances jumped an annual 81.2% to 14.61 trillion yen, including a 69.7% rise in reserve balances. Seasonally adjusted, the monetary base was up 17.4% on year in April, coming in at 95.597 trillion yen.
In Mainland China, shanghai stock market recouped morning losses to finish the choppy session marginal higher, endured gains for six days in row, with rebound in the shares of energy and financials after the People's Bank of China said the economy was “better than expected” in the first quarter and the central bank pledged to keep money flowing into the financial system to sustain growth.
The Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, rose 0.2%, or 4.92 points, to close at 2,597.44. The Shenzhen Component Index on the smaller Shenzhen Stock Exchange slid 0.4% or 40.13 points to close at 10,108.94 points.
On the economic front, the State Council said China would give 20 billion Yuan this year in interest rate subsidies on bank loans to help industries including steel; petrochemical and automobile companies upgrade their technology.
In Hong Kong, the stock market finished the session higher, extending winning streak for sixth day in row, as gains in the shares of financials stocks on bolstering expectations for a recovery in the Chinese economy would revive demand and after U.S. Treasury Secretary Timothy Geithner said bank stress- test results will reassure investors. Metal and energy stocks leaped as metal and crude oil prices ballooned amid optimism the global economy was on the recovery path.
The Hang Seng Index spurted 383.32 points, or 2.28%, to 17,217.89, while the Hang Seng China Enterprise Index, which tracks H shares of Chinese companies, rose 146.72 points, or 1.5% to 9,896.93.
On the economic front, Hong Kong's official foreign currency reserve assets increased by 3.81% in April amounting to US$193.4 billion at the end of April 2009 compared to US$186.3 billion in March.
Including unsettled forward contracts, the foreign currency reserve assets of Hong Kong at the end of April 2009 stood at US$194.0 billion (end-March 2009: US$186.3 billion).
In Australia, the stock market finished the session higher, touched six-month closing high buoyed by miners, materials and resources, and energy stocks as metal and crude oil prices ballooned amid optimism the global economy was on the recovery path. Financials spurted after their peers on Wall Street soared. Meanwhile better than expected third quarter earning from Newscorp's fueling the rally.
The benchmark S&P/ASX200 index has gained 71.60 points, or 1.85%, to 3,938.7, while the broader All Ordinaries rose 72 points, or 1.87%, to 3,912.10.
On the economic front, the Australian Bureau of Statistics said unemployment rate has dropped from 5.7% in March to 5.4% in April.
In New Zealand, the share market ended the day in the positive region for the fourth day in a row. The stock market rose today, after it held back its gains slightly yesterday following a surge for the first two days of the week. Most of the Asian markets were also trading in the green terrain although they lost momentum relative to the early days of the week.
At the closing bell, the benchmark NZX50 advanced 0.83% or 23.514 points to close at 2854.87. The NZX 15 was up 0.68% or 35.454 points to close at 5263.90.
On the economic front, New Zealand's jobless rate continued to rise in the first quarter, although less than expected, as per Statistics New Zealand. In seasonally adjusted terms, the labour market continued to weaken in the March 2009 quarter, with the number of people unemployed continuing to rise. The unemployment rate increased for the fifth consecutive quarter, to reach 5.0 percent. Both the labour force participation rate and the number of people employed fell.
In South Korea, South Korean stocks closed 0.55% higher after swinging in and out of positive terrain as investors took comfort from Wall Street gains on eased fears over the results of a stress test on U.S. banks. The benchmark Korea Composite Stock Price Index (KOSPI) advanced 7.63 points to 1,401.08, the highest level since the beginning of this year.
In Singapore, the stocks were finished the session higher, extending winning streak for sixth consecutive day, led by banks and properties. Metal and commodity stocks were firmer on the back of strong rally in commodity prices. Financial stocks outperformed after United Overseas Bank and Oversea-Chinese Banking Corporation reported yesterday first-quarter earnings that beat forecasts. Meanwhile, buying pressure was evident in manufacturing and multi industries issues. The blue chip Straits Times Index leaped 62.57 points, or 2.87%, to 2,241.60.
On the economic front, Singapore's central bank, which devalued the country's currency last month, said monetary policy remains “appropriate” amid signs the economy may be past the worst of its recession. The central bank expects consumer prices to remain unchanged or fall 1% this year. Inflation slowed to a 21-month low of 1.6% in March.
In Taiwan, stock market in Taiwan experienced a volatile trading day, as bourses managed to end the day slightly higher after slipping about 100 point lower during its intraday movement. Investors capped the gains as they locked in profits from the recent rally. Financial shares continued as leader while technology stocks showed some weakness.
The main Taiex share index crawl further as Taiex added 6.17 points or 0.09%, closing the day at 6572.87, highest closing since 8 September 2008 when market closed the day at 6658.69, bringing gains in the past six days to 976 points, the most since 18 January 1991.
On the economic front, the Cathay island-wide home sales index, collaboratively compiled by the Real-estate Center of the National Chengchi University (NCCU) and Cathay Construction Company, slid to 16.26 points in the first quarter, down 68.46% year-on-year with most regions hitting record lows since the second quarter of 2003.
In other economic news, the number of people on the dole declined to 114,000 in April after reaching a peak of 124,000 in March, indicating that the country's jobless situation is improving, the Council of Labor Affair's (CLA) said in a statement.
In Philippines, the stock market continued to take an uphill, buoyed by the hefty gains in the index-linked counter as investor's became optimistic by the overnight gains on Wall Street. At the concluding bell, the benchmark index PSEi escalated 1.48% or 32.69 points to 2,238.92, while the All Shares index rose 0.96% or 13.80 points to 1,436.63.
On the economic front, debt watcher Fitch Ratings has affirmed its Philippine ratings but warned that a downgrade was possible if the government failed to increase revenues and change its spending tack once the economy recovers. A sharp drop in exports, which will be "only partially offset" by weaker imports, plus a likely 6.8% drop in remittances means the county can expect to grow by just 0.1% this year, Fitch said.
Fitch noted the government's response to the global downturn — the P330-billion Economic Resiliency Plan — but said a drop in tax revenues could put pressure on the deficit, the target for which it said was P229 billion excluding privatization. Fitch noted that state revenues for the period were down 4%, the weakest in 22 years, which could lead to "fiscal policy adjustments" later in the year and below-target spending.
However, commenting on the growth forecast, the Philippines official's expects GDP to grow by 2 to 3% this year, a rate superior to anything in East Asia other than China and Vietnam, and a sharp contrast to the negative numbers elsewhere. The relatively strong performance this year will be largely due to what is also the Philippines' biggest long-term weakness — reliance on overseas worker remittances, which account for 10% of GDP and the bulk of foreign exchange earnings.
In India, firm global markets lifted the domestic bourses in what was a highly volatile trading session. Metal stocks surged on rally in global metal prices. Index heavyweight Reliance Industries was volatile. The BSE 30-share Sensex was up 164.19 points, or 1.37%, to 12,116.94. The S&P CNX Nifty added 58.85 points, or 1.62%, to 3,683.90.
Elsewhere, Malaysia's Kula Lumpur Composite index was down 0.05% or 0.49 points to 1023.47 while Indonesia's Jakarta composite index added 1.70% or 30.52 points ending the day at 1828.85.
In other regional market, European shares climbed on Thursday, as banks rose and investors welcomed updates from Unilever, Axa and others. In regional equity markets, the U.K. FTSE 100 index rose 1.4% to 4,459.07, the German DAX 30 index advanced 1.1% to 4,932.22 and the French CAC-40 index climbed 1% to 3,317.55.
Looking ahead for the day, all eyes will now turn to European Central Banks rate decision and press conference today. ECB is expected to slash its main refinancing rate by 25 bps to 1%. Emphasis has been put on the potential non-standard measures to be employed by ECB and these will likely be extension of refinancing maturity to 12 months from 6 months and enhancement of loan collaterals. Bank of England is expected to keep interest rate unchanged at 0.5% and continue working on the asset purchase program announced before.
Another major focus today will be Fed's announcement of announce result on bank stress test. Treasury Secretary Timothy Geithner stated earlier that while some banks will need to raise more capital, 'none of those 19 banks are at risk for insolvency' and 'the results will be, on balance, reassuring'. New said that Bank of America, Citigroup, Wells Fargo and GMAC are among the firms needing to raise capitals.
DLF Cheating Buyers ?
This was in Today's Times of India, Bangalore FULL PAGE ad by BBMP - the development authority of Bangalore
(CLICK ON THE IMAGE TO VIEW FULL SIZE)
Interested in the New Pension System ?
If you are interested in the NPS or the New Pension System - you will have to fill up the UOS-S1 registration form to the POP-SP (Points of Presence/Service Provider) (folks who accept your application) listed at http://www.pfrda.org.in
Some of the POPs include SBI and its associate banks, LIC, OBC, CAMS and Citibank.
In terms of contribution - you are required to make
a minimum per contribution of Rs 500
a minimum contribution of Rs 6000 per year
a minimum of 4 contributions per year
You can invest in 3 asset classes
Asset Class E - which is equity market instruments (stocks, mutual funds)
Asset Class C - investment in fixed income instruments other than govt securities
Asset Class G - which invests in Govt securities
You can choose to invest your pension entirely in C or G asset classes and upto a maximum of 50% in Asset Class E
If you subscribe to NPS, you will have to pay a fee to the central record-keeping agency (CRA), which will maintain all accounts and also to the PFM which manages the account. These charges will be deducted from his savings on a periodic basis. The fees and charges by the CRA and PFMs will be regulated by the PFRDA and is under discussion.
The fund management charge for mutual fund investors is 2.5 per cent of the investible corpus, deducted at the end of the year. There is a fund management fees that will be levied by the NPS are expected to be the same as mutual funds
Interested ? Download this document and the form here
BSE Bulk Deals to Watch - May 7 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
7/5/2009 530499 A K CAPITAL FIRSTRAND (IRELAND) PUB LTD CO S 40000 165.07
7/5/2009 516064 AROW COAT PR EPCOT SECIRITIES PVT LTD B 40000 10.81
7/5/2009 516064 AROW COAT PR JASMEEN KAUR S 40000 10.81
7/5/2009 500023 ASIAN HOTELS BIRLA SUNLIFE INSURANCE COMPANY LTD. B 400276 222.71
7/5/2009 500023 ASIAN HOTELS INDEA LONG TERM OPPERTUNITIES MASTER FUND S 500345 222.53
7/5/2009 532668 AURIONPRO SO NITADHIRENKOTHARY B 90000 80.40
7/5/2009 532668 AURIONPRO SO NITIKET INVESTMENT PRIVATE LIMITED B 83306 80.40
7/5/2009 532668 AURIONPRO SO ARISAIG INDIA FUND LTD(AIF) S 338512 80.44
7/5/2009 505506 AXON INFOTEC TRIPTI VYAPAAR PRIVATE LIMITED B 4756 11.10
7/5/2009 532989 BAFNA PHARMA RENEKA M B 105233 25.22
7/5/2009 532989 BAFNA PHARMA SASIKALABAFNA S 100000 25.22
7/5/2009 517001 BIRLA POWER JMP SECURITIES PVT LTD B 5379422 2.69
7/5/2009 517001 BIRLA POWER JMP SECURITIES PVT LTD S 8595000 2.71
7/5/2009 590061 BRUSHMAN IND AMIT BUSINESS PVT LTD B 70000 19.80
7/5/2009 590061 BRUSHMAN IND IVORY CONSULTANTS PVT LTD S 70000 19.80
7/5/2009 519600 CCL PRODUTS CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED B 409453 89.00
7/5/2009 519600 CCL PRODUTS THE MASTERTRUSTBANKOFJAPANLTDA/CNOMURA INDIA INVT.FUNDMOTHERFUND S 409453 89.00
7/5/2009 531270 DAZZEL CONFI PRITI V MEHTA B 61940 2.89
7/5/2009 531270 DAZZEL CONFI HASTI CHHAJER S 60557 2.89
7/5/2009 530643 INFOTREK SYS SARITA ANANDKUMAR GUPTA B 20000 12.27
7/5/2009 530643 INFOTREK SYS MAGNA UMBRELLA FUND PLC S 21100 12.27
7/5/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 38481 28.38
7/5/2009 531413 KIRAN PRIN P YASH MANAGEMENT AND SATELITE LTD B 50000 11.80
7/5/2009 531413 KIRAN PRIN P ROHYL CONSULTANCY PRIVATE LIMITED S 61600 11.87
7/5/2009 531602 KOFF BR PICT PARIMALJASHWANTRAIMEHTA B 370000 3.00
7/5/2009 511551 NETWO ST BRO ALBULA INVESTMENT FUND LTD B 725000 30.00
7/5/2009 511551 NETWO ST BRO KVPRAKASH S 304900 30.00
7/5/2009 511551 NETWO ST BRO TRINITY CAPITAL S 325040 30.01
7/5/2009 526753 ROSELABS LTD SINGHAL OVERSEAS LIMITED S 71485 10.06
7/5/2009 531898 SANGUINE MD DHIRAJLAL V SANGHVI HUF S 93628 2.38
7/5/2009 526071 SELLAIDS PUB VIRENDRASEVANTILALSHAH S 30000 2.60
7/5/2009 512048 SPLASH MEDIA SANGEETAMANTRIMANTRI B 15000 50.35
7/5/2009 512048 SPLASH MEDIA SUNITAAGARWAL B 15000 50.35
7/5/2009 512048 SPLASH MEDIA ASHAJAIN B 15000 50.35
7/5/2009 512048 SPLASH MEDIA KIRIT V DAVE B 10000 50.15
7/5/2009 512048 SPLASH MEDIA HITESHBABUBHAIDOBARIYA S 38494 50.35
7/5/2009 512048 SPLASH MEDIA BHANUMATIDHARAMRAJGIRI S 6506 50.35
7/5/2009 512048 SPLASH MEDIA GANDHI MANISHA NAVNEETLAL S 12500 50.23
7/5/2009 517385 SYMP COM SYS JONAKIACHALBAKERI B 43161 45.75
7/5/2009 517385 SYMP COM SYS ROWENTA NETWORKS PVT. LTD. S 41320 45.72
7/5/2009 531364 ZENU INFOTEC SUMANGUPTA B 55011 6.53
7/5/2009 531364 ZENU INFOTEC SUMANGUPTA S 56921 6.54
7/5/2009 531364 ZENU INFOTEC VIDYA M CHALKE S 65000 6.22
NSE Bulk Deals to Watch - May 7 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
07-MAY-2009,ALLSEC,Allsec Technologies Ltd,S.J.ASSOCIATES,BUY,244792,27.55,-
07-MAY-2009,BAJAJHIND,Bajaj Hindusthan Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,980893,103.82,-
07-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,4676866,2.95,-
07-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,BP FINTRADE PRIVATE LIMITED,BUY,3572792,2.87,-
07-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,HI-GROWTH CORPORATE SERVICES PVT. LTD.,BUY,2309902,2.89,-
07-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,JMP SECURITIES PVT LTD,BUY,23891155,2.97,-
07-MAY-2009,GMRINDS,GMR Industries Limited,GMR HOLDINGS PVT LTD,BUY,178000,80.96,-
07-MAY-2009,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,BUY,1800691,167.96,-
07-MAY-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,13920533,15.05,-
07-MAY-2009,KOTHARIPET,Kothari Petrochem Ltd,SENEX MARKETING PRIVATE LIMITED,BUY,399489,7.69,-
07-MAY-2009,LOTTEINDIA,Lotte India Corporation L,GOVIND PARIKH SECURITIES (P) LTD.,BUY,19524,524.00,-
07-MAY-2009,NAGARFERT,Nagarjuna Fert & Chem,PACE FINANCIAL SERVICES,BUY,2400498,25.25,-
07-MAY-2009,SABERORGAN,Sabero Organics Gujarat ,V.K. KUMRA,BUY,155000,19.11,-
07-MAY-2009,ALLSEC,Allsec Technologies Ltd,EURONET,SELL,252317,27.57,-
07-MAY-2009,BAJAJHIND,Bajaj Hindusthan Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,913993,103.47,-
07-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,4676750,2.98,-
07-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,BP FINTRADE PRIVATE LIMITED,SELL,2818550,2.92,-
07-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,HI-GROWTH CORPORATE SERVICES PVT. LTD.,SELL,2309902,2.89,-
07-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,JMP SECURITIES PVT LTD,SELL,20617831,3.00,-
07-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,LOTUS GLOBAL INVESTMENTS LIMITED,SELL,9651360,3.05,-
07-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,MAVI INVESTMENT FUND LIMITED,SELL,10580000,2.90,-
07-MAY-2009,GMRINDS,GMR Industries Limited,SATABDI INVESTMENT PVT LTD,SELL,174988,80.97,-
07-MAY-2009,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,SELL,1800691,168.02,-
07-MAY-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,13868893,15.11,-
07-MAY-2009,KOTHARIPET,Kothari Petrochem Ltd,JALAN CEMENT WORKS LTD.,SELL,392989,7.69,-
07-MAY-2009,NAGARFERT,Nagarjuna Fert & Chem,PACE FINANCIAL SERVICES,SELL,2106501,25.20,-
Post Session Commentary - May 7 2009
Indian market rebounded from yesterdays’ losses to end the day with gain of more than 1% mirroring favorable cues from global markets. Report that US April job cuts were not as bad as feared, also contributed to the positive attitude. Companies in the US axe probable 491,000 workers from payrolls in April, while 6,45,000 job cuts were expected. Though, market also exhibited volatility since initial bell and pared some of gains later on. Bench mark indices recuperated strength since afternoon trade on buying by foreign funds.
The market opened on positive terrain backed by positive cues from the markets all over the world. The US stock markets on Wednesday closed higher with financial stocks rallied on the back of leaked government''s "stress tests" results that indicated that the major banks are better capitalized than expected. Further, domestic bourses continued to trade above yesterday’s closing amid volatility. Firm trading in European markets also contributed to gain momentum. After paring some of gains during afternoon, market regained same momentum to close on upbeat note led by significant buying momentum. In sectoral indices, mainly Metal, Consumer Durable, Realty, Bank, Pharma, Oil & Gas and Capital Goods stocks contributed to the buying momentum. The broader market stocks out performed the benchmark indices as gained more than 2.5% each. However, FMCG stocks witnessed selling from these baskets.
Among the Sensex pack all 19 stocks ended in green territory and 11 in red. The market breadth indicating the overall health of the market remained positive as 1696 stocks closed in green while 828 stocks closed in red and 92 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 164.19 points at 12,116.94 and NSE Nifty ended up by 58.85 points at 3,683.90. BSE Mid Caps and Small Caps closed with gains of 101.10 and 110.59 points at 3,776.94 and 4,263.60 respectively. The BSE Sensex touched intraday high of 12,143.95 and intraday low of 11,981.13.
Gainers from the BSE Sensex pack are Sterlite Industries (13.78%), Hindalco (11.25%), Tata Steel (8.76%), Wipro Ltd (5.80%), HDFC (3.86%), Maruti Suzuki (3.72%), SBI (3.27%), Tata Motors (3.05%), Bharti Airtel (2.92%), RCom (61.85%), Reliance (1.82%), L&T Ltd (1.66%) and ICICI Bank (1.53%).
Losers from the BSE Sensex pack are M&M Ltd (2.83%), ACC Ltd (2.44%), HUL (1.68%), Grasim Industries (1.47%), NTPC (1.34%), ITC Ltd (1.25%), Infosys Tech (0.86%) and Sun Pharma (0.67%).
On the global markets front the Asian markets which opened before the Indian market, ended higher on better than expected US and Australian job reports. Timothy Geithner, US Treasury Secretary assured that none of country’s banks are insolvent. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended up by 4.93, 383.32, 408.33, 62.57 and 7.63 points at 2,597.45, 17,217.89, 9,385.70, 2,241.60 and 1,401.08 respectively.
European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading up by 74.32 points at 4,955.03 and in London FTSE 100 index is trading higher by 108.16 points at. 4,504.65.
The BSE Metal index outperformed the benchmark indices as ended up by (8.22%) or 619.71 points at 8,155.08 on rise in metal prices on the London Metal Exchange. Scrips that gained are Ispat Industries (14.85%), Hindustan Zinc (14.77%), Sterlite Industries (13.78%), JSW Steel (12.79%) and Hindalco (11.25%).
The BSE Consumer Durable index gained (3.72%) or 68.52 points at 1,912.44. Scrips that gained are Blue Star L (5.56%), Videocon Ind (3.35%), Titan Ind (3.35%), Gitnanjali GE (3.14%) and Rajesh Export (1.90%).
The BSE Realty ended up by (1.90%) or 44.34 points at 2,382.51 on hopes that lower rates will encourage demand. Gainers are Pheonix Mill (7.57%), Orbit Co (4.96%), Housing Dev (4.80 %), Unitech Ltd (4.15%) and Ansal Infra (2.84%).
The BSE Bank index increased by (1.85%) or 112.82 points to close at 6,206.46 on hopes that drop in interest rates will flourish lending growth. Main gainers are Yes Bank (4.75%), Canara Bank (4.60%), Bank of Baroda (4.01%), Kotak Bank (3.53%) and Punjab National Bank (3.52%).
The BSE Pharma stocks also advanced by (1.74%) or 53.82 points to close at 3,154.89. Major gainers are Bil Care Ltd (13.73%), Dishman Pharma (9.60%), Piramal Health (8.72%), Divi’s Lab (8.49%) and Lupin Ltd (4.34%).
The BSE FMCG index lost (0.71%) or 15.13 points to close at 2,103.50. Losers are HUL (1.68%), Godrej Cons (1.42%), ITC Ltd (1.25%) and Nestle Ltd (0.75%).
Bhushan steel sharply jumped 36.39% after subsidiary of the company called Bhushan Energy has acquired 0.39% of Orissa Sponge Iron & Steel at Rupees 332.7 per share.
Bharat Heavy Electrical Ltd ended up by 0.28%. The company has touched a landmark by posting a turnover of Rs 5,405 crore in 2008-09 through products developed through its in-house research and development efforts.
McNally Bharat Engineering increased by 4.96%. The company has signed a MoU with Germany-based KHD Humboldt Wedag International GMBH and its subsidiaries in Germany, India and Hong Kong to buy their various businesses.
Hindustan Zinc advanced by 14.77%. The company announced that ongoing exploration activities have yielded significant success with an increase of 46.3mn tons to its reserves and resources, prior to a depletion of 6.7mn tons in FY09.
Tata Power lost 0.31%. Industrial Energy Limited (IEL), a joint venture between Tata Power (74%) and Tata Steel (26%), announced the commissioning of 1x120 MW - power house 6 at Jamshedpur.
Tata Communications fell 0.07% to despite forming an alliance with a Russian company, RTComm to provide joint data services between the carriers in Russia and the rest of the world.
Nifty scales 7-month high; Sensex regains 12,000
Firm global markets lifted the domestic bourses in what was a highly volatile trading session. Metal stocks surged on rally in global metal prices. Index heavyweight Reliance Industries was volatile. IT stocks fell even as banking and realty stocks gained. The BSE 30-share Sensex rose 164.19 points, or 1.37%, up close to 135 points from the day's low and off close to 25 points from the day's high.
Strong inflow from foreign institutional investors and a recovery in the Indian economy bolstered sentiment. But the market was volatile. After an early surge triggered by firm global equities, the market pared gains later. Market regained strength in early afternoon trade as Asian stocks rose. After firming up in late trade, the Sensex pared gains at the fag end of the trading session.
The barometer index BSE Sensex regained the psychological 12000 mark. A 1.47% slide had pulled the Sensex below the 12,000 level yesterday, 6 May 2009. The broader-based 50-share S&P CNX Nifty attained its highest closing in more than 7 months.
Buying by foreign funds supported domestic bourses. Foreign institutional investors (FIIs) are an aggressive buying mode after they made heavy sales in the first two months of calendar 2009. Foreign institutional investors (FIIs) bought shares worth a net Rs 688.30 crore on Wednesday, 6 May 2009. FII inflow in May 2009 totaled Rs 2,874.40 crore (till 6 May 2009). FII inflow in calendar year 2009 totaled Rs 3,587.20 crore (till 6 May 2009).
A recovery in the economy also supported the domestic bourses. Activity in Indian factories expanded for the first time in five months in April 2009 as a swelling orders pipeline pointed to a tentative recovery, a survey showed on Monday, 4 May 2009. The ABN AMRO Bank purchasing managers' index (PMI) based on a survey of 500 companies, rose to 53.3 in April 2009 from 49.5 in March 2009, climbing above the threshold of 50 that separates expansion from contraction. The latest reading is the highest in seven months and it has steadily risen after hitting a trough of 44.4 in December 2008.
Manufacturing makes up about 16% of India's gross domestic product. The boost in manufacturing index came from a surge in new orders. The new orders index rose to 54.9 in April 2009 from 49.5 in March 2009. Several research notes in the past few days have pointed to improvement in economic activity in the months ahead.
European shares rose on Thursday, 7 May 2009, extending a winning streak to seven days, with banks taking the lead. Key benchmark indices in France, Germany and UK were up by between 1.74% to 2.5%.
The Bank of England said on Thursday it would increase the size of its asset purchase program by 50 billion pounds to 125 billion pounds, and left interest rates at a record low 0.5% for a second month.
The European Central Bank cut its benchmark interest rate by 25 basis points to a new record low of 1% on Thursday, as expected.
Asian stocks rose today, 7 May 2009, on better-than-estimated US and Australian jobs reports and an assurance from US Treasury Secretary Timothy Geithner that none of the country's biggest banks are insolvent. Key benchmark indices in Taiwan, Hong Kong, Singapore, China, South Korea and Japan were up by between 0.09% to 4.55%. Key benchmark indices in China, Taiwan and South Korea regained strength after falling in red for the brief period.
The China Enterprises Index of top mainland companies listed in Hong Kong rose 1.5% to 9,896.93.
Geithner said results of bank stress tests will reassure investors. The results of the stress tests will be reassuring, Geithner said in an interview that's scheduled to air on PBS. While some banks will need to raise more capital, there are a number of ways they can do that and most should be able to do it in the private sector, he said.
Meanwhile, a report from the statistics bureau of Australia said employers unexpectedly added workers in April 2009, buoying optimism the economy will avoid the worst of the global recession.
In South Korea, the Ministry of Strategy and Finance said although some recent data were pointing to an improvement in the economy it was too early to say the recovery will continue.
Trading in US index futures showed the Dow could rise 57 points at the opening bell on Thursday, 7 May 2009. US markets surged on Wednesday, 6 May 2009, as investors speculated banks will need less capital than expected and ADP Employer Services said US companies eliminated fewer jobs in April 2009 than economists expectations. The Dow rose 101.63 points, or 1.2%, to 8,512.28. The S&P 500 index added 15.73 points, or 1.7%, to 919.53. The Nasdaq gained 4.98 points, or 0.3%, to 1,759.10.
In encouraging economic data in US, reports suggested planned layoffs in April 2009 fell to 132,590, while ADP National Employment Report said private employment decreased by 491000 in April 2009 against an expected 650000 private-sector job cuts.
Closer home, political uncertainty may cause volatility on the bourses in the next few days with polling underway for India's 15th Lok Sabha. The month-long a parliamentary elections that began on 16 April 2009 will conclude on 13 May 2009. Poll estimates point to a fractured mandate. Consumption and investment decisions will be significantly impacted by any signs that the new government is unstable. The counting of votes will take place on 16 May 2009. A party/alliance needs 272 seats in the 543-member parliament to claim power at the Centre.
Polling for the fourth phase for 85 Lok Sabha seats is being held today, 7 May 2009. At the end of the fourth phase, elections would be completed in 457 of the 543-member Lok Sabha.
The BSE 30-share Sensex rose 164.19 points, or 1.37%, to 12,116.94. The Sensex jumped 191.20 points at the day's high of 12,143.95 in early trade. At the day's low of 11,981.13, the Sensex gained 28.38 points in mid-morning trade.
BSE clocked a turnover of Rs 4,670 crore, lower than Rs 5,850.89 crore on Wednesday, 6 May 2009.
The S&P CNX Nifty gained 58.85 points or 1.62% to 3,683.90, its highest closing since 3 October 2008.
Nifty May 2009 futures were at 3682.40, at a discount of 1.50 points as compared to the spot closing of 3,683.90. Turnover in NSE's futures & options (F&O) segment was Rs 48,471.10 crore, lower than Rs 57,634.57 crore on Wednesday, 6 May 2009.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,702 shares rose as compared with 851 that fell. A total of 56 shares remained unchanged.
The BSE Mid-Cap index rose 2.75% and the BSE Small-Cap index gained 2.66%. Both these indices outperformed the Sensex.
The BSE Metal index (up 8.22%), the BSE Consumer Durables index (up 3.72%), the BSE Realty index (up 1.9%), BSE Bankex (up 1.85%), BSE Healthcare index (up 1.74%), the BSE Capital Goods index (up 1.55%), the BSE Oil & Gas index (up 1.5%) outperformed the Sensex.
The BSE FMCG index (down 0.71%), the BSE IT index (up 0.06%), the BSE Power index (up 0.29%), The BSE TECk index (up 1.16%),the BSE Auto index (up 1.23%) and the BSE PSU index (up 1.26%) underperfomed the Sensex.
Among the 30-member Sensex pack, 19 stocks gained while the rest fell.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 1.82% to Rs 1,914. The stock was volatile. It hit a high of Rs 1,922 and a low of Rs 1,880. Analysts expect strong growth in bottom line in coming quarters from sale of gas which it started pumping last month from its deep-sea field off the east coast.
Oil exploration firm Cairn India gained 7.02% on higher crude oil prices. India's biggest listed state-run oil exploration firm by sales Oil and Natural Gas Corporation (ONGC) rose 0.26%. Crude oil extended yesterday's 4.6% gain after an Energy Department report showed US refinery demand climbed. Crude oil for June 2009 delivery rose as much as 56 cents, or 1%, to $56.90 a barrel on the New York Mercantile Exchange.
But, PSU OMCs fell on rise in oil prices. Indian Oil Corporation HPCL and BPCL fell 1.1% to 1.6%. State-run oil marketing firms suffer revenue loss on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.
Capital goods stocks rose after India's biggest engineering & construction firm by revenue Larsen & Toubro (L&T) recently said it expect a strong order flow in the year ending March 2010 (FY 2010). L&T rose 1.66%. Bharat Heavy Electricals, Thermax, Punj Lloyd, Praj Industries, Siemens, rose by between 0.28% to 4.8%.
L&T on 16 April 2009 said the company expects its order inflow to grow by 25-35% in FY 2010.
Real estate shares rose on reports commercial banks have stepped up lending to the real estate sector. Housing Development & Infrastructure, Indiabulls Real Estate and Unitech rose by between 2.62% to 4.8%. Most of the realty deals including sale of commercial property and housing sales is driven by finance and bank lending is therefore key.
According to RBI data, loans to the real estate sector grew 61% on a year-on-year basis, with Rs 90,765 crore outstanding as on 27 February 2009. During the corresponding period in the previous year, the growth was 26.7%.
Metal stocks surged after LMEX, a measure of six metals traded on the London Metal Exchange, jumped 4.14% to 2,255 on Wednesday, 6 May 2009. Hindustan Zinc, Tata Steel, Steel Authority of India, Sterlite Industries, Hindalco Industries and National Aluminum Company, rose by between 5.1% to 14.77%.
Outsourcing focussed IT stocks fell for the second straight day on US government plans to scrap tax incentives that encourage American firms to ship jobs overseas. A firm rupee also weighted on IT stocks. India's second largest software services exporter by sales Infosys slipped 0.86% as its ADR slipped 3.05% on Wednesday.
India's largest software services exporter by sales TCS fell 0.47%.
But, India's third largest software services exporter by sales Wipro rose 5.8% even as its ADR fell 2.75% on Wednesday.
Analysts feel that US government's plan to scrap tax incentives that encourages American firms to ship jobs overseas is unlikely to dent business for Indian outsourcers. US president Barack Obama on Monday, 4 May 2009, announced plans to reduce tax breaks for US-based multinationals shipping jobs to places like India. Instead, the tax incentives would now go to those creating jobs inside the US, in places like the Buffalo city, New York.
Currently, US businesses that invest overseas can take an immediate tax deduction for expenses supporting their overseas investments. They can also defer the payment of US taxes on the profits they make from such investments. But, now the Obama Administration wants to ensure that companies do not receive deductions for expenses supporting their offshore investments until they pay tax on their offshore profits. This is intended to disincentivise US companies from retaining profits abroad.
Infosys said the proposal, if implemented, was unlikely to reverse the outsourcing of a gamut of services by US firms to Indian companies. "The current proposal, as we understand, is to close corporate tax loopholes on US multinational corporations and crack down on their overseas tax havens," the company said in a statement. "We do not believe that it has anything to do with IT outsourcing done by US corporations.", Infosys said.
Meanwhile, the Indian rupee rose to fresh two and half month highs on Thursday on expectations foreigners would bring in funds into the local share market, with higher Asian units also supporting sentiment. The partially convertible rupee was at 49.24 per dollar, higher than Wednesday's close of 49.58/60.
A stronger rupee affects operating profit of IT firms negatively as they earn most of their revenues from exports.
Banking stocks rose in choppy trade on hopes falling interest rates will boost lending growth. India's largest private sector bank by net profit ICICI Bank rose 1.53% to Rs 549.10. It hit a high of Rs 557.75 and a low of Rs 538.15. Its ADR fell 5.79% on Wednesday.
India's largest bank in terms of assets and branch network State Bank of India (SBI) was up 3.27% to Rs 1,366.95. It hit a high of Rs 1,375 and a low of Rs 1,330.35. SBI announces Q4 March 2009 results on Saturday, 9 May 2009. A total 13 brokerages expect a between 15% fall to a 39% rise in SBI's net profit at between Rs 1601.20 crore to Rs 2626.60 crore in Q4 March 2009 over Q4 March 2008.
India's second largest private sector bank by operating income HDFC Bank rose 0.4% to Rs 1,176.75 . It hit a high of Rs 1,189 and a low of Rs 1,164. Its American depository receipts (ADRs) fell 0.15% on Wednesday, 6 May 2009.
India's biggest dedicated housing finance firm by operating income HDFC was up 3.86%.
Shipping firms rose after the Baltic Dry Index, which measures commodity-shipping rates, surged. Shipping Corporation of India, Varun Shipping Company, Essar Shipping, ABG Shipyard, Shreyas Shipping, GE Shipping Company, Mercator Lines rose by between 2.92% to 10.93%.
The Baltic dry index, which measures commodity-shipping rates, rose 8.85% to 2,065 in London yesterday, 6 May 2009, its highest closing level since mid-March 2009. The index rose after China, world's largest consumer of metals, said iron-ore imports at the country's major ports rose by a quarter in April 2009 to a record.
Auto stocks gained on strong sales figures posted by auto firms in April 2009. India's largest commercial vehicle maker by sales Tata Motors rose 3.05% after the British government said it is continuing talks with Tata Motors on providing aid to its UK's Jaguar Land Rover unit. Bajaj Auto, Maruti Suzuki India and Hero Honda Motors, rose by between 1.64% to 3.72%. But Mahindra & Mahindra fell 1.81% 2.83%
Cement stocks fell on reports cement prices could fall by up to 10% in the coming months, pushed lower by new supply and slower construction activity during the monsoon season. Ultratech Cements, Grasim Industries, ACC and Ambuja Cements, fell by between 1.41% to 2.7%.
Rates in Mumbai may see the steepest fall before the four-month-long monsoon season ends in September, dropping by about Rs 20 for a 50 kilogram bag, the report added.
Some healthcare stocks rose as most of the healthcare firms reported better than expected Q4 Marc 2009 result. Piramal Healthcare, Lupin, Biocon, Dr Reddy's Laboratories rose by between 0.71% to 8.72%.
Cals Refineries clocked the highest volume of 5.24 crore shares on BSE. Ispat Industries (3.19 crore shares), Unitech (1.68 crore shares), Birla Power Solutions (1.31 crore shares) and Suzlon Energy (1.21 crore shares) were the other volume toppers in that order.
Tata Steel clocked the highest turnover of Rs 222.33 crore on BSE. Reliance Industries (Rs 210.89 crore), DLF (Rs 207.33 crore), Reliance Capital (Rs 182.88 crore) and ICICI Bank (Rs 175.90 crore) were the other turnover topers in that order.
Gammon India
We recommend a buy in Gammon India from a short-term trading perspective. It is evident from the charts that the stock’s decline from January peak of Rs 96 was arrested at Rs 50 in early March, which was just above the December 2008 low of Rs 47. However, the stock reversed its trend and has been on medium-term uptrend since March. In early April the stock conclusively penetrated its 50-day moving average and is trading well above this average. After a minor pullback, the stock resumed its medium-term trend by gaining 6 per cent with above average volume on May 6. This recent surge in stock price has reinforced the bullish momentum. The daily relative strength index (RSI) has re-entered the bullish zone from the bearish zone and the weekly RSI is begun to rise in the neutral region. The daily moving average convergence and divergence indicator is featuring in the positive territory. We are bullish on the stock from a short-term horizon. We anticipate the stock’s up move to prolong until it hits our price target of Rs 92. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 78.
Crude at six month high
Prices rise as crude inventories rise less than expected
Crude oil ended at highest levels in almost six months on Wednesday, 06 May, 2009. Prices rose today as energy department's weekly inventory report showed that crude inventories rose less than expected last week and also gasoline inventories dropped.
On Wednesday, crude-oil futures for light sweet crude for June delivery closed at $56.34/barrel (higher by $2.5 or 4.6%) on the New York Mercantile Exchange. Last week, crude ended higher by 3.2%.
Crude ended April higher by 2.9%. Previously, March trading ended 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 61% since then. Year to date, in 2009, crude prices are higher by 19.7%. On a yearly basis, crude prices are lower by 43%.
EIA reported today that crude inventories increased by 600,000 barrels in the week ended 1 May, 2009. Gasoline inventories fell by 200,000 barrels. Market was expecting a buildup of more than 2 million barrels in crude inventories and a 750,000 increase in gasoline inventories. Crude inventories, meanwhile, still remained at the highest level since September 1990.
The report also showed that total petroleum demand over the past four weeks was 7.9% lower than a year ago. EIA also reported U.S. refineries increased their capacity utilization of 85.3%, up from 82.7% a week ago.
Also at the Nymex on Wednesday, June reformulated gasoline rose 5.58 cents, or 3.5%, to $1.628 a gallon and June heating oil added 4.51 cents, or 3.2%, to $1.4713 a gallon.
Natural gas for June delivery rose 25.6 cents, or 7.1%, to $3.871 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 May delivery closed at Rs 2,778/barrel, higher by Rs 102 (3.8%) against previous day's close. Natural gas for May delivery closed at Rs 191.3/mmbtu, higher by Rs 12.9/mmbtu (7.2%).
Bullion metals rise further
Precious metals rise as optimistic economic reports hints at higher inflation
Precious metals ended higher on Wednesday, 06 May, 2009 at Comex. Prices rose today on couple of economic reports that hinted towards more inflation ahead thereby increasing the appeal of precious metals as a safe bet for 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 Wednesday, Comex Gold for June delivery gained $6.7 (0.7%) to close at $911 an ounce on the New York Mercantile Exchange. Earlier in the day, it rose to a high of $913.5. Last week, gold ended lower by 3%. Year to date, gold prices are higher by 2.4%.
For the month of April, gold lost 3.7%, the second consecutive monthly drop. 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%) since then.
On Wednesday, Comex silver futures for July delivery gained 29 cents (2.2%) at $13.71 an ounce. Year to date, silver has climbed 15.9% this year. For 2008, silver had lost 24%.
Among major economic reports for the day, a private sector report stated that private-sector employment fell by an estimated 491,000 jobs in April, the smallest decline in six months. In a separate report, also helping boost sentiment, the Mortgage Bankers Association reported a 2% rise last week in the count of mortgage applications, hinting that the troubled housing market could be stabilizing
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 107 (0.74%) at Rs 14,486 per 10 grams. Prices rose to a high of Rs 14,532 per 10 grams and fell to a low of Rs 14,365 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 535 (2.5%) higher at Rs 22,326/Kg. Prices opened at Rs 21,869/kg and rose to a high of Rs 22,450/Kg during the day's trading.
FIIs buy equities worth Rs 27.99 bn on May 6 Email Print Foreign Institutional Investors (FIIs) remain net buyer
Foreign Institutional Investors (FIIs) remain net buyers in the equity segment worth Rs 5.31 billion on both the BSE and the NSE on May 6 as per provisional data available at NSE. They bought equities worth Rs 27.99 billion and sold equities worth Rs 22.68 billion.
While, Domestic Institutional Investors (DIIs include banks, DFIs, Insurance and MFs) remain net sellers in the equity segment worth Rs 282.6 million on both the BSE and the NSE on May 6, as per provisional data available at the NSE. They bought equities worth Rs 11,708.5 million and sold equities worth Rs 11,991.1 million.
Wednesday, May 06, 2009
BSE Bulk Deals to Watch - May 6 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
6/5/2009 530499 A K CAPITAL FIRSTRAND (IRELAND) PUB LTD CO S 45000 164.67
6/5/2009 532475 APTECH LTD RAKESHRADHEYSHYAMJHUNJHUNWALA B 442000 113.34
6/5/2009 512149 AVANCE TECHN RITABEN R THAKKAR B 120000 9.39
6/5/2009 512149 AVANCE TECHN DEVANG MASTER S 100000 9.39
6/5/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD B 198695 5.02
6/5/2009 531358 CHOIC INTERN JAGO INDIA ADVISORY PRIVATE LID B 40745 22.21
6/5/2009 531358 CHOIC INTERN VINOD JEETAPAL BANA B 25000 22.00
6/5/2009 531358 CHOIC INTERN SURENDRA KUMAR KULHARI S 89882 22.23
6/5/2009 526027 CUBEX TUBING VIMALRAMNARAYANTOSHNIWAL S 85000 11.25
6/5/2009 531270 DAZZEL CONFI AJAYAGRAWAL B 45000 3.21
6/5/2009 531270 DAZZEL CONFI PRITI V MEHTA B 90000 3.21
6/5/2009 531270 DAZZEL CONFI REKHA BHANDARI S 38210 3.21
6/5/2009 531270 DAZZEL CONFI HASTI CHHAJER S 145250 3.21
6/5/2009 532760 DEEP INDS ARCADIA SHARE & STOCK BROKERS PVT. LTD S 141162 61.15
6/5/2009 532038 EMMSO INTERN AJAY AGARWAL B 24756 38.83
6/5/2009 532022 FILAT FASH BHAVYA MANILAL FURIYA B 49800 87.57
6/5/2009 532022 FILAT FASH POPAT BHARAT NANALAL S 49800 87.57
6/5/2009 531137 GEMSTONE INV BHAVESH P PABARI S 18040 28.35
6/5/2009 517271 HBL P SYS RELIANCE CAPITAL LTD B 1741000 174.13
6/5/2009 517271 HBL P SYS ABHISHEK SONATA S 1729665 174.20
6/5/2009 516078 JUMBO BAG LT URMILCHANDRAGUPTAMEHTA S 50000 28.18
6/5/2009 530165 KANCHA INTER SURAJ KANWARI KASAT B 17804 5.38
6/5/2009 530165 KANCHA INTER SAROJ BHAGWATI PRASAD RUNGTA S 17804 5.38
6/5/2009 531413 KIRAN PRIN P YASH MANAGEMENT AND SATELITE LTD B 25000 11.29
6/5/2009 531413 KIRAN PRIN P SAPATRISHI PROPERTIES PVT LTD B 26721 11.29
6/5/2009 531413 KIRAN PRIN P ROHYL CONSULTANCY PRIVATE LIMITED S 50000 11.29
6/5/2009 500126 MERCK LTD AMERICAN FUNDS INSURANCE SERIESGLOBAL CAPITALIZATION FUND B 300000 347.49
6/5/2009 500126 MERCK LTD HDFC MUTUAL FUND S 300000 347.49
6/5/2009 532850 MIC ELECT FIDELITY INVESTMENT SERVICES LIMITED A/C FIDELITY INSTITUTIO B 1000000 28.99
6/5/2009 532850 MIC ELECT JMP SECURITIES PVT LTD B 1001163 29.65
6/5/2009 532850 MIC ELECT JMP SECURITIES PVT LTD S 1102303 29.35
6/5/2009 504864 ORISA SP IRS BHUSHAN ENERGY LIMITED B 103996 332.73
6/5/2009 531611 PRRANET INDU JASMINSBAJORIYA S 420007 4.46
6/5/2009 506618 PUNJAB CHEM PRIMORE SOLUTIONS PVT.LTD B 40176 193.61
6/5/2009 506618 PUNJAB CHEM PRIMORE SOLUTIONS PVT.LTD S 38176 195.87
6/5/2009 506618 PUNJAB CHEM N VGRAPICE & ADVERTISING P LTD S 25000 193.04
6/5/2009 526753 ROSELABS LTD SINGHAL OVERSEAS LIMITED S 100000 9.31
6/5/2009 512048 SPLASH MEDIA BHANUMATIDHARAMRAJGIRI B 10345 52.74
6/5/2009 512048 SPLASH MEDIA KIRIT V DAVE B 19655 52.50
6/5/2009 512048 SPLASH MEDIA ASHOKHARGOVINDASSONI B 9000 52.50
6/5/2009 512048 SPLASH MEDIA KAMLESH NAHAR S 27360 52.57
6/5/2009 512048 SPLASH MEDIA KAMLESHNAHAR S 12000 52.50
6/5/2009 517385 SYMP COM SYS JONAKIACHALBAKERI B 50000 43.60
6/5/2009 517385 SYMP COM SYS HIRWAACHALBAKERI B 75000 43.60
6/5/2009 517385 SYMP COM SYS ROWENTA NETWORKS PVT. LTD. S 50000 43.60
6/5/2009 517385 SYMP COM SYS BLUBAY TECHNOLOGIES PVT. LTD. S 75000 43.60
6/5/2009 590013 XPRO INDIA-PMS TARUNA SUBHASH SHARMA B 46302 20.61
6/5/2009 590013 XPRO INDIA-PMS TARUNA SUBHASH SHARMA S 46302 20.76
6/5/2009 531364 ZENU INFOTEC SUMANGUPTA B 70150 6.23
6/5/2009 531364 ZENU INFOTEC SUMANGUPTA S 38240 6.53
6/5/2009 531364 ZENU INFOTEC SANTOSH GANGARAM MOHITE S 100000 5.92
NSE Bulk Deals to Watch - May 6 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
06-MAY-2009,ALKALI,Alkali Metals Limited,VAJA ATULBHAI GORDHANBHAI,BUY,59232,292.56,-
06-MAY-2009,APTECHT,Aptech Limited,RAKESH R.JHUNJHUNWALA,BUY,558000,113.19,-
06-MAY-2009,BAJAJHIND,Bajaj Hindusthan Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1122562,102.37,-
06-MAY-2009,BAJAJHIND,Bajaj Hindusthan Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,1258019,102.42,-
06-MAY-2009,BALRAMCHIN,Balrampur Chini Mills,OM INVESTMENTS,BUY,1286694,77.84,-
06-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,2417033,2.88,-
06-MAY-2009,CHAMBLFERT,Chambal Fertilizers Ltd.,PACE FINANCIAL SERVICES,BUY,2131279,48.97,-
06-MAY-2009,GMRINDS,GMR Industries Limited,GMR HOLDINGS PVT LTD,BUY,102547,78.56,-
06-MAY-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,3864630,28.03,-
06-MAY-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,5572556,14.40,-
06-MAY-2009,MIC,MIC Electronics Limited,FIDELITY INVESTMENT SERVICES LIMITED A/C FIDELITY,BUY,1030000,28.98,-
06-MAY-2009,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD.,BUY,3929142,25.30,-
06-MAY-2009,NAGARFERT,Nagarjuna Fert & Chem,PACE FINANCIAL SERVICES,BUY,2878643,25.16,-
06-MAY-2009,PLASTIBLEN,Plastiblends India Limite,SARITADEVI KABRA,BUY,50000,90.25,-
06-MAY-2009,PUNJABCHEM,Punj Chem & Crop Prot Ltd,PRIMORE SOLUTIONS PVT.LTD,BUY,48926,194.32,-
06-MAY-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,BUY,90054,774.78,-
06-MAY-2009,XPROINDIA,Xpro India Limited,TARUNA SUBHASH SHARMA,BUY,76816,20.87,-
06-MAY-2009,ALKALI,Alkali Metals Limited,VAJA ATULBHAI GORDHANBHAI,SELL,47710,288.63,-
06-MAY-2009,BAJAJHIND,Bajaj Hindusthan Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1133962,102.19,-
06-MAY-2009,BAJAJHIND,Bajaj Hindusthan Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,1258019,102.49,-
06-MAY-2009,BALRAMCHIN,Balrampur Chini Mills,OM INVESTMENTS,SELL,1286694,77.91,-
06-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,2417033,2.90,-
06-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,MAVI INVESTMENT FUND LIMITED,SELL,8200000,2.90,-
06-MAY-2009,CHAMBLFERT,Chambal Fertilizers Ltd.,PACE FINANCIAL SERVICES,SELL,2129214,48.95,-
06-MAY-2009,GKW,GKW Ltd,LOTUS GLOBAL INVESTMENTS LIMITED,SELL,350000,48.00,-
06-MAY-2009,GMRINDS,GMR Industries Limited,SATABDI INVESTMENT PVT LTD,SELL,100000,78.55,-
06-MAY-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,3927670,28.12,-
06-MAY-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,6117756,14.45,-
06-MAY-2009,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD.,SELL,3929142,25.29,-
06-MAY-2009,NAGARFERT,Nagarjuna Fert & Chem,PACE FINANCIAL SERVICES,SELL,2878643,25.26,-
06-MAY-2009,PLASTIBLEN,Plastiblends India Limite,MAHASHREE PLASTIC IND PVT,SELL,50000,90.25,-
06-MAY-2009,PUNJABCHEM,Punj Chem & Crop Prot Ltd,PRIMORE SOLUTIONS PVT.LTD,SELL,48313,196.03,-
06-MAY-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,SELL,90054,775.00,-
06-MAY-2009,TCS,TATA CONSULTANCY SERV LTD,TATA LIMITED,SELL,10321324,615.04,-
06-MAY-2009,XPROINDIA,Xpro India Limited,TARUNA SUBHASH SHARMA,SELL,76816,20.80,-
Nifty Turnover surges
Nifty May 2009 futures at premium
Nifty May 2009 futures were at 3627.80, at a premium of 2.75 points as compared to the spot closing of 3,625.05. Turnover in NSE's futures & options (F&O) segment surged to Rs 57,634.57 crore from Rs 52,712.16 crore on Tuesday, 5 May 2009.
ICICI Bank May 2009 futures were at discount at 538.15 compared to the spot closing of 539.60.
Suzlon Energy May 2009 futures were at discount at 72.85 compared to the spot closing of 73.75.
Tata Steel May 2009 futures were near spot price at 270 compared to the spot closing of 270.70.
In the cash market, the S&P CNX Nifty lost 36.85 points or 1.01% at 3,625.05.
Sensex falls below 12,000 in choppy trade; Tata Steel tumbles
Political uncertainty pulled the market lower in a choppy trading session with the barometer index BSE Sensex falling below the psychological 12,000 mark. There was a sudden sell-off after the Sensex surged to a 6-month high in afternoon trade on the back of rally in Asian shares. The barometer index lost 178.33 points or 1.47%, off 319.35 points from the day's high and up 53.34 points from the day's low. Market breadth, indicating the overall health of the market, turned negative in late trade. The breadth was strong till afternoon trade.
Volatility was hallmark of the trading session. The market drifted lower in early trade amid concern the US banks are short of capital. The market cut losses later. It moved between positive and negative zone in early afternoon trade. The market surged in afternoon trade as Asian stocks rose. A sell-off gripped the bourses in mid-afternoon trade. The market cut losses in volatile late trade.
Political uncertainty weighed on the market with polling underway for India's 15th Lok Sabha. The month-long parliamentary elections that began on 16 April 2009 will conclude on 13 May 2009 with results due on 16 May 2009. Poll estimates point to a fractured mandate.
Polling for the fourth phase for 85 Lok Sabha seats will be held tomorrow, 7 May 2009. At the end of the fourth phase, elections would be completed to 457 of the 545-member Lok Sabha.
A recovery in the 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 3970.68 points or 48.65% to 12,131.08 on 5 May 2009. Foreign institutional investors (FIIs) were one of the key drivers of this rally. Their inflow in the calendar year 2009 totaled Rs 2,898.90 crore (till 5 May 2009).
Activity in Indian factories expanded for the first time in five months in April 2009 as a swelling orders pipeline pointed to a tentative recovery, a survey showed on Monday, 4 May 2009. The ABN AMRO Bank purchasing managers' index (PMI) based on a survey of 500 companies, rose to 53.3 in April 2009 from 49.5 in March 2009, climbing above the threshold of 50 that separates expansion from contraction. The latest reading is the highest in seven months and it has steadily risen after hitting a trough of 44.4 in December 2008.
Manufacturing makes up about 16% of India's gross domestic product. The boost in manufacturing index came from a surge in new orders. The new orders index rose to 54.9 in April 2009 from 49.5 in March 2009. Several research notes in the past few days have pointed to improvement in economic activity in the months ahead.
European markets were trading firm today, 6 May 2009 as losses in energy stocks were offset by gains in banks which shrugged off news that Bank of America needs $34 billion in fresh capital. Key benchmark indices in UK, Germany and France were up by between 0.07% and 0.80%.
A purchasing managers index of the British services industry rose to an eight-month high of 48.7 in April 2009 from 45.5 in March 2009. The reading, which beat economist estimates, nonetheless still signals that part of the UK economy is contracting, albeit at a reduced rate
Another data showed UK consumer confidence rose by eight points to 50 in April 2009, the largest single monthly rise in almost two years.
Asian stocks rose shrugging off concern that US banks are short of capital. Key benchmark indices in China, Hong Kong, Singapore and Taiwan were up by between 0.98% and 5.05%. South Korea's Seoul Composite was down 0.32%. Japan's market is closed for a holiday.
Asia Pacific countries will need to implement forceful monetary and fiscal policies through next year as insurance against downside economic risks and for the region to come out of recession more quickly, the International Monetary Fund today, 6 May 2009, said. "On the fiscal side, it will be important to sustain the stimulus injected in 2009 into next year, not least as an insurance policy against risks that have yet to reveal themselves," the IMF said in its latest Regional Economic Outlook for Asia and Pacific. At the same time, fiscal credibility must be preserved by signaling that fiscal stimulus packages are extraordinary and will be unwound once a recovery is firmly established.
"On the monetary side, many central banks still have scope to reduce policy rates, while some may need to support credit to the private sector through unconventional measures," the report said.
IMF called on the governments to take preemptive measures to shore up bank capital and improve bankruptcy procedures, warning that the collapse of global demand is likely to lead to a surge in corporate defaults that could spill over to the banking sector.
"Under the baseline scenario, losses are likely to be manageable, largely because Asian corporates entered the crisis in robust financial health," it said. "But if global demand plunges anew, the ranks of defaulters could grow to uncomfortably high levels, and Asia could become trapped in an adverse feedback loop in which the losses in the corporate and banking sectors imperil each other."
The IMF forecast the global economy won't recover before the middle of 2010, so a sustained economic recovery in the region will have to wait. The IMF forecast that the economy in the whole of Asia will grow 1.3% this year before expanding 4.3% in 2010, well below its potential and down from a growth of 5.1% in 2008.
Australian retail sales climbed in March 2009 at their fastest pace in four months, while the nation's trade surplus ballooned to its second-largest on record, according to data released Wednesday.
Trading in US index futures showed the Dow could fall 33 points at the opening bell on Wednesday, 6 May 2009. Bank of America may need to raise a further $34 billion in capital as a result of its US government stress test, reports suggest. The results of the US government's Supervisory Capital Assessment Program, otherwise known as the "stress test," imposed on 19 major US banks will be released Thursday, 7 May 2009.
US stocks edged lower on Tuesday, 5 May 2009 as cautious investors were worried about bank stress test results and as energy shares succumbed to the pressure on lower oil prices. The Dow Jones Industrial Average fell 16.09 points, or 0.19%, to 8,410.65. The Standard & Poor's 500 Index lost 3.44 points, or 0.38 per cent, to 903.80 and the Nasdaq Composite index dropped 9.44 points, or 0.54%, to 1,754.12.
Signs of life from the battered consumer and housing sectors raise hope that the severe recession in the US may be bottoming out and that growth could turn positive later this year, Federal Reserve Board Chairman Ben Bernanke said Tuesday. Businesses will likely need to restock shelves after letting their inventories fall sharply, Bernanke said in testimony on Capitol Hill. For their part, consumers appear to have adjusted to the downturn and have begun shopping again, and the spring selling season for homes seems to be attracting buyers for the first time in three years, he said.
In economic news the Institute for Supply Management's (ISM) report showed the service sector contracted at a slower pace in April 2009 than in March 2009. The April 2009 ISM service index came in at 43.7, better than expected, against 40.8 in March 2009, the highest level since October 2008.
The European Central Bank (ECB) is likely to increase efforts to shore up the slumping eurozone economy this week, cutting interest rates to a record low of 1% and embarking on further radical and aggressive measures when the ECB's Governing Council meets on Thursday, 7 May 2009. Economists forecast a further quarter-point cut in official eurozone interest rates to 1% - a level not reached since the euro's creation.
The BSE 30-share Sensex lost 178.33 points, or 1.47%, to 11,952.75. The Sensex opened 30.39 points lower at 12,100.69. The Sensex rose 140.96 points at the day's high of 12,272.04 in afternoon trade, its highest level since 6 October 2008. At the day's low of 11,899.40, the Sensex lost 231.68 points in late trade.
The S&P CNX Nifty shed 36.85 points, or 1.01%, to 3,625.05. Nifty May 2009 futures were at 3627.80, at a premium of 2.75 points as compared to the spot closing. Turnover in NSE's futures & options (F&O) segment surged to Rs 57,634.57 crore from Rs 52,712.16 crore on Tuesday, 5 May 2009.
The market breadth, indicating the overall health of the market, turned negative in late trade after remaining strong earlier in the day. On BSE, 1307 shares declined as compared with 1215 that rose. A total of 96 shares remained unchanged.
The BSE Mid-Cap index slipped 1.16% to 3,675.84 and the BSE Small-Cap index fell 0.23% to 4,153.01. Both these indices outperformed the Sensex.
BSE clocked a turnover of Rs 5,830 crore, slightly lower than Rs 5,831.59 crore on Tuesday, 5 May 2009.
All sectoral indices on BSE edged lower. The BSE TECk index (down 0.89%), the BSE Oil & Gas index (down 0.09%), BSE Consumer Durables index (down 0.33%), the BSE PSU index (down 0.32%), the BSE Capital Goods index (down 0.93%), the BSE Auto index (down 0.81%), the BSE Power index (down 0.02%), BSE Healthcare index (down 0.62%), outperformed the Sensex.
The BSE IT index (down 1.51%), the BSE FMCG index (down 1.97%), the BSE Realty index (down 3.74%), BSE Bankex (down 2.94%), and the BSE Metal index (down 2.79%), underperfomed the Sensex.
Among the 30-member Sensex pack, 19 slipped while the rest rose. Hindalco (up 1.61%), NTPC (up 1.44%), and Sun Pharma (up 0.37%), edged higher from the Sensex pack.
India's largest mortgage finance firm by total income HDFC tumbled 4.95% to Rs 1767, extending yesterday's 5.81% slide after the stock's rating was cut to hold from buy by Deutsche Bank, which said the shares were fairly valued.
Banking shares declined on profit taking after a sharp rally in the past few days. ICICI Bank (down 4.64%), HDFC Bank (down 0.93%), and State Bank of India (down 1.16%), edged lower.
India's largest private sector steel marker by sales Tata Steel lost 5.15% to Rs 271.40, off sharply from day's high of Rs 290, after global rating firm S&P said it has kept its 'BB' issue rating on the 3.67 billion British pound senior secured debt of Tata Steel UK on credit watch with negative implications.
Outsourcing focussed IT stocks fell on US government plans to scrap tax incentives that encourage American firms to ship jobs overseas. India's largest software services exporter by sales TCS lost 2.83% to Rs 632.05. The stock had lost 2.31% on Tuesday, 5 May 2009 on reports Chrysler, the bankrupt US automaker, plans to scale down its offshore outsourcing of information technology projects to vendors such as TCS in the near term, as America's third-largest automaker prepares to undergo a massive business transformation steered by the Obama administration and sell its assets to Italy's Fiat.
India's third largest software services exporter by sales Wipro fell 2.54% to Rs 359.05 despite a 2.73% rise in its ADR on Tuesday, 5 May 2009.
India's second largest software services exporter by sales Infosys slipped 0.91% to Rs 1568.50. Infosys' ADR slipped 1.04% on Tuesday, 5 May 2009
Analysts, however, feel that US government's plan to scrap tax incentives that encourages American firms to ship jobs overseas is unlikely to dent business for Indian outsourcers. US president Barack Obama on Monday, 4 May 2009, announced plans to reduce tax breaks for US-based multinationals shipping jobs to places like India. Instead, the tax incentives would now go to those creating jobs inside the US, in places like the Buffalo city, New York.
Currently, US businesses that invest overseas can take an immediate tax deduction for expenses supporting their overseas investments. They can also defer the payment of US taxes on the profits they make from such investments. But, now the Obama Administration wants to ensure that companies do not receive deductions for expenses supporting their offshore investments until they pay tax on their offshore profits. This is intended to disincentivise US companies from retaining profits abroad.
Infosys said the proposal, if implemented, was unlikely to reverse the outsourcing of a gamut of services by US firms to Indian companies. "The current proposal, as we understand, is to close corporate tax loopholes on US multinational corporations and crack down on their overseas tax havens," the company said in a statement. "We do not believe that it has anything to do with IT outsourcing done by US corporations.", Infosys said.
Core Projects & Technologies gained 2.80% to Rs 106.45 after net profit surged 47.61% to Rs 24.37 crore 13.21% rise in net sales to Rs 101.84 crore in Q4 March 2009 over Q3 December 2008. The company announced the results during trading hours today, 6 May 2009.
India's largest oil exploration firm by sales Oil and Natural Gas Corporation (ONGC) rose 0.11% to Rs 886.25, on higher crude oil prices. But the stock came off the day's high of Rs 919.90. Nymex crude moved past $54 a barrel a mark after the American Petroleum Institute said late yesterday, 5 May 2009, that crude stockpiles declined last week.
Meanwhile, as per reports, ONGC is looking for partners to bid for three oil fields in Iraq. Reports added ONGC Videsh, the overseas arm of ONGC, had held preliminary talks with Malaysia's Petronas, Russia's Gazprom, France's Total and the UK's BP.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) was almost unchanged at Rs 1877.15. Analysts expect strong growth in bottom line in coming quarters from sale of gas which it started pumping last month from its deep-sea field off the east coast. The stock swung wildly in range of Rs 1935.40 and Rs 1850.
Ratnagiri Gas & Power may sign an accord to buy gas from RIL at a board meeting this week, reports suggest.
Shares of oil marketing firms HPCL (down 1.70%), BPCL (down 1.89%), and IOC (down 1.42%) fell as oil rose. State-run oil marketing firms suffer revenue loss on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.
Gujarat State Petronet soared 9.94% to Rs 47. As per reports, Reliance Industries is likely to sign an agreement with a group company of Royal Dutch Shell PLC (RDSA) to buy up to 4 million standard cubic meters per day of liquefied natural gas for two months. Further, Reliance may sign a separate agreement with Gujarat State Petronet to transport the gas from Shell's Hazira LNG terminal in Gujarat to its refineries at Jamnagar.
India's largest pharma company by sales Ranbaxy rose 0.68% to Rs 178.50, extending yesterday's 3.38% rise after the company said it has launched phase-III clinical trials for its Anti-Malaria drug Arterolanc Maleate Piperaquine phosphate in India, Bangladesh and Thailand. The company expects to complete the trial and apply for marketing authorisation by late calendar year 2010.
But India's third largest pharma company by sales Cipla fell 3.63% to Rs 227.25 despite receiving a tentative approval from US Food and Drug Administration (US FDA) for tenogovir disoproxil fumarate tablets in 300 miligram (mg).
Cadila Healthcare rose 5.07% to Rs 336.65 on receiving the US regulatory approval to market its drug Mycophenolate Mofetil, which is used to suppress immune system in organ transplant. The estimated sales in 2008 as per National Drug Code (NDC) for Mycophenolate Mofetil tablets was $648 million and for the capsule it was $316 million.
India's second largest cellular services provider by sales Reliance Communication slipped 0.44% to Rs 236, after striking day's high of Rs 249. Consolidated net profit as per Indian GAAP declined 3% to Rs 1454.31 crore on 10% growth in sales to Rs 5797.77 crore in Q4 March 2009 over Q4 March 2008. The company unveiled the results on Thursday, 30 April 2009
India's largest cellular services provider by sales Bharti Airtel rose 0.25% to Rs 754.10. On 5 May 2009, Bharti Airtel and Alcatel-Lucent formed a joint venture to manage Airtel's pan-India broadband and telephone services.
Tulip Telecom surged 27.60% to Rs 608.95. The company will declare the year ending March 2009 results by June 2009.
India's largest engineering and construction company by sales Larsen & Toubro shed 1.10% to Rs 968. The company recently said it expects strong order flow in the year ending March 2010.
India's largest dam builder by sales Jaiprakash Associates slumped 6.35% to Rs 138 and was the top loser from the Sensex pack. The stock slipped on profit booking after it gained 52.38% to Rs 147.35 in one month to 5 May 2009.
McNally Bharat Engineering Company rose 2.73% to Rs 64 on signing a pact for acquisition of engineering workshop and coal & mineral technology business of KHD Humboldt Wedag International GMBH. The company made this announcement during trading hours today, 6 May 2009.
India's top tractor maker by sales Mahindra & Mahindra rose 0.27% to Rs 535, recovering from the session's low of Rs 516.10. The company said after trading hours on Tuesday, 5 May 2009, workers at its plant in Nashik in Maharashtra began a strike which would temporarily affect production.
However, India's largest small car maker by sales Maruti Suzuki India was down 2.16% to Rs 811.50. The company on Tuesday, 5 May 2009 said it will launch its new hatchback 'Ritz' on 15 May 2009. "Ritz, which will be available in petrol and diesel variants, will be India's first Bharat Stage IV compliant car.
Auto ancillary shares rose on reports the government would consider various measures, including imposing anti-dumping duties, to protect the domestic auto component industry from cheap imports. Minda Industries (up 4.68%), Bharat Gears (up 5.54%), Pricol (up 2.37%), Sona Koyo Steering (up 0.32%), and Rico Auto (up 1.46%), gained.
Reliance Infrastructure was the turnover topper on the BSE clocking turnover of Rs 300.08 crore followed by ICICI Bank (Rs 288.95 crore), Reliance Industries (Rs 277.25 crore), Suzlon Energy (Rs 254.18 crore) and Reliance Capital (Rs 244.63 crore).
Suzlon Energy topped the volume chart on BSE clocking volume of 3.38 crore shares followed by Unitech (2.59 crore shares), Reliance Natural Resources (2.49 crore shares), IFCI (1.74 crore shares) and Ispat Industries (1.01 crore shares).
Kanoria Chemicals & Industries hit upper circuit of 20% at Rs 23.10 after net profit jumped 148.4% to Rs 7.60 crore in Q4 March 2009 over Q4 March 2008. The result was declared after market hours yesterday, 5 May 2009.
The Indian government will release the weekly wholesale price inflation data around midday on Friday, 8 May 2009, instead of Thursday, 7 May 2009, due to a holiday for elections in New Delhi on Thursday.
Pre Session Commentary - May 6 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened in green despite flat closing of US markets. The sentiments in domestic arena would once again lament due to lack of any major news. One could expect another volatile session today amidst cautious trading. Further movements of the Asian markets would depend on the opening of the European markets.
On Tuesday, domestic markets closed flat after a volatile trade. Since the beginning of the day’s trade, lack of news and any cues from the Asian & European markets was evident. The trade was of low intensity and traders were cautious about their new positions. As the pending home sales data in US recorded better than expected growth of 3.2%, domestic Realty sector was the star performer of the day’s trade with a phenomenal gain of 8.63%. Stocks like DLF and Unitech were in the lime light recording exemplary gains of 11.36% and 10.66% to close at Rs. 260.30 and Rs. 54.50 respectively. Metal, Bankex, CG and Power stocks also managed recorded gains of 3.5%, 2.36%, 1.77% and 1.19% respectively. However amidst lack of news, bottom line stocks stole the charm of the day. We expect the markets to be trading positive with an essence of volatility.
The BSE Sensex closed flat at 12,131.08 and NSE Nifty ended up by 7.90 points at 3,661.90. BSE Mid Caps and Small Caps closed with gains of 67.58 points and 80.88 points at 3,718.87 and 4,162.58 respectively. The BSE Sensex touched intraday high of 12,197.88 and intraday low of 11,985.88.
On Tuesday, the US stock markets closed in red. The statement from Ben Bernanke prompted investors to book profits rather than carry forward yesterday’s rally. The Fed chairman Ben Bernanke has stated to the Joint Economic Committee that the recent data suggest that the pace of contraction may be slowing however the economic activity is likely to bottom out instead of moving up this year. Bernanke''s statement was further supported by the April ISM Service Index. Showing continued contraction, the Index came in at 43.7, but that was better than expected and up from the prior reading. Besides the Financial stocks, Energy stocks also fell due to fall in crude oil prices. US light crude oil futures for June declined by 1.2% at $53.80 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) declined by 16.09 points to close at 8,410.65 The NASDAQ Composite (RIXF) index fell by 9.44 points to close at 1,754.12 and the S&P 500 (SPX) declined by 3.44 points to close at 903.80.
Today major stock markets in Asia are trading positive. Hang Seng is trading up by 54.18 points at 16,484.26 followed by, Strait Times which is low by 9.11 points at 2,055.11.
Indian ADRs ended mixed. In technology sector, Infosys ended down by 1.04% along with Satyam by 0.56%. Further, Wipro gained 2.73% whereas Patni Computers closed down by 0.12%. In banking sector ICICI Bank gained 1.62% while HDFC Bank dropped by 2.18%. In telecommunication sector Tata Communication gained 0.13% and MTNL increased by 3.32%. Sterlite Industries decreased by 3.15%.
The FIIs on Tuesday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 3,852.80 Crore and gross debt purchased stood at Rs 56.20 Crore, while the gross equity sold stood at Rs 2,361.60 Crore and gross debt sold stood at Rs. 410.30 Crore. Therefore, the net investment of equity and debt reported were Rs 1,491.10 Crore and Rs (354.10) Crore respectively.
On BSE, total number of shares traded were 57.10 Crore and total turnover stood at Rs 5,831.59 Crore. On NSE, total number of shares traded was 119.86 Crore and total turnover was Rs 18,476.81 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 134753965 shares, followed by Suzlon Energy with 70788494 shares, DLF with 27798838 shares, ICICI Bank 23161116 shares and Tata Steel with 16763994 shares respectively.
On NSE Future and Options, total number of contracts traded in index futures was 832620 with a total turnover of Rs 14,657.83 Crore. Along with this total number of contracts traded in stock futures were 522332 with a total turnover of Rs 21,603.51 Crore. Total numbers of contracts for index options were 793635 with a total turnover of Rs 14,943.84 Crore and total numbers of contracts for stock options were 34288 and notional turnover was Rs 1,506.98 Crore.
Today, Nifty would have a support at 3,600 and resistance at 3,695 and BSE Sensex has support at 12,015 and resistance at 12,210.
Sideways movement may continue
The market is likely to witness sideways movement on the back of a strong intra-day volatile move. Stocks across the sectors along with heavyweights may gyrate sharply. Overnight marginal weakness in the US indices and mixed Asian markets in morning’s trades may further dampen the investors' sentiment. On the technical side, the Nifty has a stiff resistance at 3700-3740 levels and the downside strong support at 3610-3570, while the Sensex could test higher levels of 12220 and has a likely support at 12000.
Among the major results, ASM Technology, Manali Petro, Selan Exploration, Tayo Rolls, Visagar Poly, GIC Housing, Polytex, SKS Logo and Wall Street and many more are expected to announce their quarterly numbers.
US indices Tuesday as investors retreated after pushing the major gauges to multi-month highs in the previous session. As a result the Dow Jones lost 16 points to close at 8411 and the Nasdaq ended 9 points lower at 1754.
Indian floats trading on the US bourses had a mixed outing on Tuesday, the gainers were, Rediff gaining sharply over 39% while MTNL, Wipro, ICICI Bank and VSNL gained marginally. However, HDFC Bank & Dr Reddy slipped over 2% and Infosys, Satyam, Tata Motors and Patni Computer dropped around half a percent each.
Crude oil prices in the US market edged higher, with the Nymex light crude oil for June delivery up by a cents to close at $53.85 per barrel. In the commodity segment, the Comex gold for June series gained by $2.10 to settle at $904.30 an ounce.
Daily News Roundup - May 6 2009
Wipro has been awarded a 9-year IT outsourcing contract by Unitech Wireless worth Rs25-28bn (ET)
L&T and EADS set-up JV to make products for Indian defense segment (ET)
Pfizer sues Sun Pharma, Wockhardt and Lupin in US against generic versions of its best-selling nerve drug (BS)
SEBI issues a show-cause notice to RIL and its associated entities following a probe into charges of insider trading in shares of Reliance Petro (BS)
RIL seeks partner for its Rs400bn Haryana SEZ (FE)
Reliance Infrastructure to sign a 500MW PPA with Tata Power (ET)
SAIL records highest-ever average monthly sales of over 50,000 tons of steel products for construction in 2008-09 (ET)
BHEL to invest Rs120bn over the next four years to pick up equity in power projects and to ramp up capacity (ET)
Tata Steel and RINL have increased prices of long products sold in the spot market by Rs1,000/ton (ET)
Cipla’s HIV drug gets clearance from the US FDA (ET)
Work at the M&M’s Nashik plant has been affected following a tool down strike by the workers (BL)
Indian Hotels picks up 2.25mn shares of Orient Express for US$12.9mn (ET)
Kingfisher Airlines is understood to be finalizing a working capital loan of over Rs20bn from SBI (ET)
Jubilant Organosys has signed a R&D deal with AstraZeneca (BL)
Sobha Developers to raise Rs7.5bn and increase investment limit by FIIs to 100% (BS)
Strides Arcolabs has started exporting its flu drug to various countries (BL)
Maytas Infra to raise Rs8-10bn through asset sales and loans and gurantees from banks to complete various projects (BS)
Government considering various measures including imposing anti dumping duty on auto parts (ET)
India’s coffee exports are expected to jump by 21% to 2,30,000 tones in FY10 (ET)
Country’s engineering exports declined 13.7% yoy in 2008-09 (FE)
No crowd, no strength!
The crowd gives the leader new strength.
In politics and in market, the crowd (and of course money) sure adds new strength. But that strength seems to be running out for now. After a strong start to the week, the bulls seem to be losing hold. We expect the market to consolidate further amid persistent uncertainty over the outcome of elections. The result of the stress test of large US banks and monthly jobs report may also keep investors nervous. Asian markets are trading in the red or only marginally positive. As a result, the Indian indices are also likely to open on a cautious note. Overall, the trend may remain sideways with no major movement on either side.
While the foreign funds have been aggressively pumping money into the Indian stocks, their domestic counterparts are cautious. Reports say a domestic insurance giant has been booking profits of the past few days. Mutual Funds too are also indulging in only selective buying while using the rally to lock in some gains.
Quite a few local as well as global experts are warning against getting carried away with the current momentum. To a certain extent, we also endorse their view as a full fledged global turnaround may still take longer than expected. Also, the recent run-up has been too fast, which makes the market susceptible to a sharp reversal.
FIIs were net buyers in the cash segment on Tuesday at Rs5.08bn while the local institutions were net sellers at Rs1.3bn. In the F&O segment, the foreign funds were net sellers at Rs1.46bn. On Monday, the foreign funds were net buyers at Rs14.9bn in the cash segment.
US stocks ended slightly lower on Tuesday as investors chose to remain on the sidelines after pushing the major benchmarks to multi-month highs in the previous session. The Dow Jones Industrial Average lost 16 points, or 0.2%, to 8,410.65. The S&P 500 index lost 3 points, or 0.4%, to 903.80. The Nasdaq Composite index fell 9 points, or 0.4%, to 1,754.12.
US stocks slumped as investors pulled back after a strong start to the week. On Monday, the Nasdaq ended at a six-month high and the Dow and S&P 500 ended at nearly 4-month highs.
Expectations that the worst is over for the US and the global economy have lifted global equities over the last two months. The Nasdaq has risen for eight straight weeks after falling to a six-year low. The Dow and S&P 500 have risen for 7-8 weeks, after falling to more than 12-year lows. The rally propelled the S&P 500 by 34% since March 9.
The US economy will bottom and start to rebound later this year, but the recovery process will be slow and choppy, Federal Reserve Chairman Ben Bernanke told the Joint Economic Committee of the Congress. His comments essentially reiterated the statement from the last Fed policy meeting.
At least 10 of the 19 big banks under review by the government may need to boost their capital, the Wall Street Journal reported. The government has been testing the banks' viability in case the economic slowdown accelerates in the coming months. The results of the "stress tests" are due late on Thursday.
Bank of America, Citigroup and Wells Fargo have all been mentioned over the last few days as lenders that will potentially need to raise more capital.
AIG is expected to report a quarterly loss when it releases results late on Thursday. However, the insurance titan is not expected to need more money from the US government. Its shares rallied 14%.
In other financial news, Swiss bank UBS reported a steep quarterly loss and said it expects loan losses to keep climbing in the months ahead. US bank shares slipped, sending the KBW Bank sector index down by 1.6%.
Dow component Kraft Foods reported higher quarterly earnings that topped estimates. But revenue fell as the stronger dollar hurt sales overseas. Kraft shares rallied 4%.
A variety of influential technology shares slipped, dragging on the Nasdaq, including Intel, Dell, Microsoft and Applied Materials.
The Institute for Supply Management's index on the services sector of the economy rose to 43.7 in April from 40.8 in March. Economists had forecast a gain of 42.2. Any reading below 50 still indicates contraction, but the improvement suggests the pace of the slowdown is easing.
Treasury prices slipped, raising the yield on the benchmark 10-year note up to 3.16% from 3.15% on Monday.
Borrowing costs improved. The 3-month Libor rate, a key bank lending rate, fell to 0.99% on Tuesday, its lowest point on record. The overnight Libor rate held steady at 0.24%.
In currency trading, the dollar gained versus the euro and the yen.
US light crude oil for June delivery fell 63 cents to settle at $53.84 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery settled up $2.10 to $904.30 an ounce.
After the close, Walt Disney reported weaker earnings that topped estimates on weaker revenue that missed estimates. Shares gained in extended-hours trading.
Wednesday brings the private sector employment report from payroll services firm ADP, a precursor to the government's non-farm payrolls report due on Friday. Employers are expected to have cut 643,000 jobs from their payrolls after cutting 742,000 in the prior month.
Highly volatile market ended on a flat note on Tuesday. However, buying witnessed in the Realty, Metals and Banking stocks saw the Sensex to close above the 12,000 levels for second straight trading session. The BSE Sensex ended flat at 12,131. The NSE Nifty was up 7 points to close at 3,661.
Among the 30-components of Sensex, 16 ended in the red and 14 ended in the positive terrain. DLF, ICICI Bank, Tata Steel, Tata Motors, Reliance Infra and Ranbaxy were among the top gainers.
Top losers were HDFC, ITC, Infosys, M&M, TCS and NTPC.
Shares of Strides Arcolab rallied by over 7% to Rs113 after the company announced that it started supplies of capsules used in the treatment of swine flu and plans to manufacture more than 2mn doses per month starting June. The stock hit an intra-day high of Rs117 and a low of Rs106 and recorded volumes of over 0.35mn shares on BSE.
Shares of L&T surged by over 3% to Rs978 after the company announced that it will join forces with EADS Defence & Security in the fields of defence technology for manufacturing defence electronics in India at Talegaon near Pune.
The new JV company will aim at design, development, manufacturing and related services in the fields of electronic warfare, radar, military avionics and mobile systems for military applications.
Shares of Ranbaxy advanced by 4% to Rs177. According to reports, the company’s clinical trials for its malaria drug in final trial stage. The scrip touched an intra-day high of Rs180 and a low of Rs174 and recorded volumes of over 0.6mn shares on BSE.
Shares of Purvankara Projects edged higher by 0.6% to Rs69 after reports stated that it may consider restructuring part of its Rs2.8bn debt which is due for payment over the next 12 months. The scrip touched an intra-day high of Rs72 and a low of Rs69 and recorded volumes of over 21,000 shares on BSE.
Shares of GMR Infra gained by 3% to Rs120 after reports stated that the board of directors will meet on 9th May 09 to discuss the raising of funds through the issue of various securities. The scrip touched an intra-day high of Rs122 and a low of Rs116 and recorded volumes of over 2.1mn shares on BSE.
Tuesday saw Indian markets end on a flat note, the consolidation phase might continue for some time. All eyes would now be on the election results. A government formed by either the UPA or the NDA will be welcome. But, anything other than this scenario may temporarily make some dent in the sentiment.
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