Monday, May 04, 2009
The Sensex closed in the positive territory for the second consecutive session led by gains in metal major Sterlite Industries, and information technology and
banking stocks. The market resumed on a strong note backed by positive global cues and strong investor appetite for heavyweights. The Sensex quickly breached 12000 levels in early trades and held on its gains. Relentless buying in front-line stocks towards the close helped the index to touch to an intra-day high of 12162, up 759 points. The Sensex finally wrapped up the session 732 points higher at 12135. Nifty closed at 3654 by adding 180 points.
The breadth of the market was positive. Of the 2,612 stocks traded on the BSE 1,771 stocks advanced, whereas 770 stocks declined. Seventy one stocks ended unchanged. All the sectoral indices ended positive. The BSE Metal ended firm with gains of 8.77% while the BSE IT rose 8.40% and the BSE Bankex added 7.89%. All other indices gained 1-5% each.
Action in several index heavyweights lifted the market. Sterlite Industries led the pack and shot up by 16.56% at Rs476.80. Hindalco Industries soared by 13.74% at Rs61.25, Mahindra & Mahindra surged 13.07% at Rs549.80, HDFC flared up by 13.06% at Rs1,957.60, ICICI Bank jumped by 10.74% at Rs529.05, Tata Steel added 10.48% at Rs263, Wipro advanced by 10.35% at Rs364.60 and ITC moved up by 8.75% at Rs205.65. While, HDFC Bank, Larsen & Toubro, Infosys Technologies, Reliance Infrastructure and the remaining Sensex stocks posted gains in the range of 1-7%.
Metal stocks were the stars of the day. Hindustan Zinc shot up by 9.44% at Rs483.15, Jindal Saw soared 8.14% at Rs210.75, Steel Authority of India flared up by 7.96% at Rs118, JSW Steel added 7.49% at Rs361.75 and Nalco was up 7.33% at Rs227.10. Select IT stocks too logged sharp gains. HCL Technologies scaled up by 18.71% at Rs154.15, NIIT jumped by 12.48% at Rs29.75, Financial Technologies India added 11.93% at Rs792.05, Wipro gained 10.35% at Rs364.60 and Infosys Technologies was up 8% at Rs1629.25.
Over 7.12 crore share of Cals Refineries changed hands on the BSE followed by Unitech (3.14 crore shares), Reliance Natural Resources (1.21 crore shares), Infrastructure Development Finance Company (99.25 lakh shares) and Suzlon Energy (92 lakh shares).
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
4/5/2009 532114 AREALTY HS FII INVESTMENTS LIMITED B 3100000 11.98
4/5/2009 532114 AREALTY RAJABABU SAMPATRAO BANDELA S 2080000 11.98
4/5/2009 532114 AREALTY MASTER VISION SURVEYORS P LTD S 940000 11.98
4/5/2009 532668 AURIONPRO SO BAKLIWAL FINCOM PVT. LTD. B 76000 86.81
4/5/2009 590059 BIHAR TUBES APL INFRASTRUCURE PVT LTD B 800000 53.95
4/5/2009 590059 BIHAR TUBES MANJU SINGHAL S 300000 53.95
4/5/2009 590059 BIHAR TUBES VINOD KUMAR SINGHAL S 300000 53.95
4/5/2009 590059 BIHAR TUBES ANUJ SINGHAL S 300000 53.96
4/5/2009 505426 DAGGER FORST CHANDRAKANTJVALLAKATI B 41862 14.24
4/5/2009 505426 DAGGER FORST CHANDRAKANTJVALLAKATI S 82862 13.92
4/5/2009 506480 GULF OIL COR ASHITA BHAVIN PAREKH B 465392 41.60
4/5/2009 506480 GULF OIL COR ESQUIRE PVT. LTD. S 475000 41.60
4/5/2009 532081 K SERA SERA S V ENTERPRISES B 913494 10.15
4/5/2009 532081 K SERA SERA S V ENTERPRISES S 913494 10.11
4/5/2009 532819 MINDTREE LTD OPG SECURITIES P LTD B 288809 341.20
4/5/2009 532819 MINDTREE LTD OPG SECURITIES P LTD S 288809 341.34
4/5/2009 517334 MOTH SUMI SY SAMVARDHANA MOTHERSON FINANCE LIMITED B 8950213 82.13
4/5/2009 517334 MOTH SUMI SY VIVEK CHAAND SEHGAL S 2186826 81.50
4/5/2009 517334 MOTH SUMI SY VAMAN AUTO INDUSTRY S 5664937 82.50
4/5/2009 506618 PUNJAB CHEM EMERGING CAPITAL ADVISORS LIMITED B 26000 199.50
4/5/2009 506618 PUNJAB CHEM SHAISHAV RAKESHBHAI SHSH S 25000 199.50
4/5/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD B 111071 765.97
4/5/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD S 111071 765.83
4/5/2009 512048 SPLASH MEDIA ATUL SINGHI B 15000 55.88
4/5/2009 512048 SPLASH MEDIA HITESHBABUBHAIDOBARIYA S 19000 55.97
4/5/2009 531364 ZENU INFOTEC G.K. TRADING PVT. LTD. B 100000 5.93
4/5/2009 531364 ZENU INFOTEC VIDYA M CHALKE S 100000 5.93
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
04-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,2253502,2.60,-
04-MAY-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,BUY,105090,2437.71,-
04-MAY-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,BUY,357725,10.15,-
04-MAY-2009,KSERAPRO,K Sera Sera Productions L,NEWGEN INTERNATIONAL PRIVATE LIMITED,BUY,405318,10.00,-
04-MAY-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,BUY,138834,764.19,-
04-MAY-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,76348,763.07,-
04-MAY-2009,RSSOFTWARE,R. S. Software (I) Ltd.,IQROOP SINGH SEKHON,BUY,40000,18.03,-
04-MAY-2009,SARLAPOLY,Sarla Performance Fibers,SATIDHAM INDUSTRIES PVT. LTD,BUY,59530,42.78,-
04-MAY-2009,SELMCL,SEL Manufacturing Company,TOUCHSTONE FINVEST SERVICES PRIVATE LIMITED,BUY,170179,90.57,-
04-MAY-2009,STAR,Strides Arcolab Limited,RELIANCE CAPITAL MUTUAL FUND,BUY,271000,99.00,-
04-MAY-2009,TIDEWATER,Tide Water Oil Co. (India,DECENT FINANCIAL SERVICES PVT LTD,BUY,6983,3500.00,-
04-MAY-2009,AUTOLITIND,Autolite (India) Ltd,LOTUS GLOBAL INVESTMENTS LIMITED,SELL,100088,22.00,-
04-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,2144485,2.60,-
04-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,SOMERSET EMERGING OPPORTUNITIES FUND,SELL,13000000,2.60,-
04-MAY-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,SELL,105090,2438.77,-
04-MAY-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,SELL,562725,10.03,-
04-MAY-2009,KSERAPRO,K Sera Sera Productions L,NEWGEN INTERNATIONAL PRIVATE LIMITED,SELL,405318,10.14,-
04-MAY-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,SELL,138834,764.29,-
04-MAY-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,76348,763.48,-
04-MAY-2009,SARLAPOLY,Sarla Performance Fibers,RAJESH RAJNIKANT VED,SELL,57530,42.81,-
04-MAY-2009,SELMCL,SEL Manufacturing Company,TOUCHSTONE FINVEST SERVICES PRIVATE LIMITED,SELL,96902,88.80,-
04-MAY-2009,TIDEWATER,Tide Water Oil Co. (India,MADANLAL LTD,SELL,7000,3500.00,-
Indian market witnessed sharp rally to close with strapping gains tracking firm cues from the markets all over the world. BSE Sensex zoomed over 6% to close above 12,100 mark for the first time since Oct''08, and NSE Nifty surged over 5% to end above 3,600 level. Benchmark indices were on roll on a survey that showed activity in Indian factories expanded for the first time in five months in April as growing orders pipeline pointed to a tentative recovery. The ABN Amro Bank''s purchasing managers'' index (PMI) based on a survey of 500 companies increased to 53.3 in April from 49.5 during March. Any level above 50 indicates expansion in manufacturing activity.
The market opened on pleasant note after a long weekend mirroring strength across Asian markets. Further, domestics stocks continued to touch a new high as US consumer confidence has improved to its best level since September 2008. The consumer sentiment index increased to 65.1 in April 2009 from 57.3 in March 2009. Bulls were on full momentum to cope up with the early gains in the US and other markets across the world during the previous two day’s trading close of the domestic markets. Phenomenal opening of European markets also helped traders to keep there buying morale firm. Finally, markets concluded its buoyant movement with mammoth gains. In sectoral indices, strong buying was witnessed mainly in Metal, IT, Bank, Capital Goods, Teck, FMCG, Reality, Auto and Consumer Durables, stocks. The broader market stocks also followed the same trend as Mid Cap and Small Cap stocks ended with gains of more than 3% each.
Among the Sensex pack all 30 stocks ended in green territory. The market breadth indicating the overall health of the market remained extremely positive as 1771 stocks closed in green while 770 stocks closed in red and 71 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 731.50 points at 12,134.75 and NSE Nifty ended up by 180.05 points at 3,654. BSE Mid Caps and Small Caps closed with gains of 137.43 and 140.80 points at 3,651.29 and 4,081.70 respectively. The BSE Sensex touched intraday high of 12,161.90 and intraday low of 11,635.24.
Gainers from the BSE Sensex pack are Sterlite Industries (16.56%), Hindalco (13.74%), M&M Ltd (13.07%), HDFC (13.06%), HDFC (7.37%), ICICI Bank (10.74%), Tata Steel (10.48%), Wipro Ltd (10.32%), ITC Ltd (8.75%), HDFC Bank (8.54%), L&T Ltd (8.28%), Infosys Tech (8.09%), Reliance Infra (7.75%), TCS Ltd (7.06%), SBI (6.93%), RCom (6.61%), Tata Motors (6.13%) and JP Associates (6.03%).
On the global markets front the Asian markets which opened before the Indian market, ended higher on recovery hopes as U.S. manufacturing activity in April contracted at a slower-than-expected pace last month that was slowest rate since September. Expansion in China for the first time in nine months and pledge of regional leaders to start a $120 billion foreign-currency reserve pool, also contributed to the positive sentiments. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended higher by 82.34, 860.06, 149.11, 108.43 and 28.56 points at 2,559.91, 16,381.05, 8,977.37, 2,028.71 and 1,397.92 respectively.
European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading up by 78.58 points at 4,848.03 and in Paris CAC 40 is trading higher by 34.36 points at. 3,194.21. The UK markets are closed today for a public holiday.
The BSE Metal index outperformed the benchmark indices and gained (8.77%) or 603.66 points at 7,489.47 on rise in metal prices on the London Metal Exchange. Scrips that gained are sterlite Industries (16.56%), Hindalco (13.74%), Tata Steel (10.48%), Hindustan Zinc (9.44%) and Jindla Saw (8.14%).
The BSE IT ended up by (8.40%) or 223.69 points at 2,887.04 on hopes that measures by the US government to revive the economy may provide results. Gainers are HCL Tech (18.71%), NIIT Ltd (12.48%), Finance Tech (11.93%), Wipro Ltd (10.32%) and Infosys Tech (8.09%).
The BSE Bank index increased by (7.89%) or 448.31 points to close at 6,133.53 on hopes that drop in interest rates will flourish lending growth. Main gainers are ICICI Bank (10.74%), Kotak Bank (10.27%), Axis Bank (9.57%), Indus Ind Bank (8.63%), Allahabad Bank (8.48%) and Yes Bank (7.90%).
The BSE Capital Goods stocks also advanced by (5.88%) or 465.42 points to close at 8,374.17. Major gainers are Thermax Ltd (10.36%), Walchand In (9.98%), Punj Lloyd (9.97%), Crompton Greaves (9.30%) and Siemens Ltd (9.21%).
The BSE Teck index gained (5.86%) or 126.78 points to close at 2,289.78. Gainers are HCL Tech (18.71%), NIIT Ltd (12.48%), Finance Tech (11.93%), Wipro Ltd (10.32%), Infosys Tech (8.09%) and Idea Cell (7.58%).
The BSE FMCG index also ended up by (5.43%) or 113.74 points at 2,208.74. Ruchi Soya (19.43%), ITC Ltd (8.75%), United Spr (3.22%), Godrej Cons (3.18%) and Nestle Ltd (2.99%) ended in positive territory.
Mahindra and Mahindra zoomed by 13.07%. The company has reported 14.8% increase in total sales in April 2008 as compared to a year ago period. The auto giant’s domestic sales grew 16% on an annual basis while exports declined by 39.3%.
Tata steel surged by 10.48% after a news that it may accept an invitation from the Liberian government to rebid for a $1.6-billion iron ore mine, from which was initially barred.
SBI is closed up by 6.93%. On 2nd May, the bank reduced deposit rates by 0.25% on all tenures effective from May 4. With this, 7.5% rate will be applicable to one-year to less than two-year deposits as against 7.75% earlier.
Ranbaxy Laboratories ended higher by 2.83%. The company commenced Phase III clinical trial for its new Anti-malaria combination drug, Arterolanc maleate + Piperaquine phosphate in India, Bangladesh and Thailand.
Siemens Ltd gained 9.21%. The engineering major has signed a contract with Gujarat-based Adani Power for transportation of power from its Mundra unit in Gujarat to Haryana. The contract values Rs 1,380 crore. The project is scheduled to be completed within two years and will be western India''s second private-private partnership (PPP) power transmission line.
TVS Motor Company surged 5.14% after two-wheeler sales rose 3% to 1,13,119 units in April 2009 over April 2008.
Bharti Airtel gained 1.15%. The company and Alcatel-Lucent have formed a Joint Venture to manage Bharti Airtel’s pan-India Broadband and Telephone services and help airtel’s transition to Next Generation Networks.
Maruti Suzuki India increased by 2.85% after vehicle sales rose around15% to 71,748 units in April 2009 over April 2008.
Key benchmark indices settled near day's high, striking 7-month highs, mirroring strong global cues. The barometer index BSE Sensex gained 731.50 points, or 6.41%, outperforming its global peers. Strong domestic and global economic data and aggressive build-up of fresh derivatives positions in May 2009 series triggered a solid rally on the bourses today, 4 May 2009. The barometer index BSE Sensex surpassed the psychological 12,000 level.
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 20089.
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.
Financial stocks led gains in European markets today, 4 May 2009, on improved economic data in the euro-zone. Germany's DAX gained 1.80% and France's CAC 40 index rose 1.16%. The stock market in UK was shut for a public holiday
The euro-zone manufacturing purchasing managers' index came in at 36.8 in April 2009, above 33.9 in March 2009. Stocks also rose as the US said swine flu has milder symptoms than the world's previous influenza outbreaks.
Asian stocks rose, led by technology and finance companies, as manufacturing in China expanded for the first time in nine months and regional leaders pledged to start a $120 billion foreign-currency reserve pool. Key benchmark indices in China, Hong Kong, Singapore, Taiwan, South Korea gained by between 2.09% and 5.64%. Japan's stock market is closed for a three-day holiday.
A China purchasing manager's index rose to a seasonally adjusted 53.5 in April 2009 from 52.4 in March 2009, according to a statement from the Federation of Logistics and Purchasing on 1 May 2009. A reading over 50 indicates an expansion of activity in the manufacturing sector while one below 50 suggests contraction.
The Association of Southeast Asian Nations, together with Japan, China and South Korea, said they will start a $120 billion foreign-currency reserve pool by the end of the year to help revive investor confidence. The pledge was agreed upon at a weekend meeting in Bali, Indonesia.
Trading in US index futures showed the Dow could rise 50 points at the opening bell on Monday, 4 May 2009. US stocks gained on Friday, 1 May 2009 after better-than-expected reports on consumer confidence and manufacturing. The Dow Jones Industrial Average gained 44.29 points, or 0.54%, to 8,212.41. The Standard & Poor's 500 Index rose 4.71 points, or 0.54%, to 877.52 and the Nasdaq Composite index rose 1.90 points, or 0.11%, to 1,719.20.
US consumer sentiment rose in April 2009, according to a survey released on Friday. The consumer sentiment index rose to 65.1 in April 2009 from 57.3 in March 2009.
Another data showed that the pace of decline in the US manufacturing sector slowed in April 2009. The closely watched ISM purchasing managers' index rose to 40.1% in April 2009 from 36.3% in March 2009. It was the highest reading since September 2008, when the global financial crisis intensified.
Bank of America and Citigroup are working on plan to raise more than $10 billion each in capital after preliminary findings of the US stress test on banks, according to media reports. However, the two banks as well as two other lenders, will attempt to persuade the Treasury and the Federal Reserve that the findings of the stress tests into their financial health were too pessimistic, the Financial Times reported on Monday, citing people close to the situation.
The results of the government's Supervisory Capital Assessment Program, otherwise known as the "stress test," imposed on 19 major banks will be released Thursday,7 May 2009. The Federal Reserve has already said that most US banking organizations had enough capital.
Closer home, India's exports declined by 33% to $11.5 billion while imports dipped 34% to $15.5 billion in March 2009 over March 2008, provisional data released on Friday, 1 May 2009 showed. Exports registered its sixth straight fall in March 2009 on global economic slump.
The BSE 30-share Sensex jumped 731.50 points, or 6.41%, to 12,134.75, registering its biggest single day point gain since 31 October 2008. The Sensex opened 231.99 points higher at 11,635.24, which was also its day's low. At the day's high of 12,160.32, the Sensex gained 757.07 points in late trade, its highest level since 7 October 2008.
The BSE Sensex has advanced 2,487.44 points or 25.78% in the calendar year 2009 from its close of 9647.31 on 31 December 2009.
Coming back to today's trade, the S&P CNX Nifty advanced 180.05 points, or 5.18%, to 3,654. Nifty May 2009 futures were at 3659.90, at a premium of 5.90 points as compared to the spot closing. Turnover in NSE's futures & options (F&O) segment was Rs 46,344.80 crore much lower than Rs 80,063.40 crore on Wednesday, 29 April 2009.
Signs of an improvement in the Indian economy triggered a solid rally on the domestic bourses in the past few days. The rally was also a part of a sharp surge in global equities triggered by hopes the worst of the global economic recession may be over. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has jumped 3974.35 points or 48.70%
Foreign institutional investors (FIIs) played a key role in the recent rally. FII inflow in April 2009 totaled Rs 7,039.90 crore, with their inflow in calendar year 2009 totaling Rs 368.10 crore, till 28 April 2009.
The BSE Mid-Cap index gained 3.91% to 3,651.29 and the BSE Small-Cap indices rose 3.57% to 4,081.70. Both these indices, however, underperformed the Sensex
The market breadth, indicating the overall health of the market, was strong. On BSE, 1774 shares rose as compared with 782 that declined. A total of 66 shares remained unchanged.
BSE clocked a turnover of Rs 4726 crore as compared to Rs 4,168.12 crore on Wednesday, 29 April 2009
The BSE IT index (up 8.40%), the BSE Bankex (up 7.89%), and the BSE Metal index (up 8.77%), outperformed the Sensex.
The BSE TECk index (up 5.86%), the BSE Healthcare index (up 1.49%), the BSE FMCG index (up 5.43%), the BSE Consumer Durables index (up 4.23%), the BSE PSU index (up 2.99%), the BSE Capital Goods index (up 5.88%), the BSE Realty index (up 4.96%), the BSE Auto index (up 4.62%), the BSE Power index (up 3.31%), the BSE Oil & Gas index (up 3.87%), underperfomed the Sensex.
All the 30 members from the Sensex pack logged gains. ITC (up 8.41%), Reliance Infrastructure (up 7.05%), and Jaiprakash Associates (up 5.55%), edged higher from the Sense pack.
Metal shares were the star gainers of the day's trading session on rise in commodity prices on the London Metal Exchange. India's largest aluminium and copper maker by sales Sterlite Industries galloped 17.05% to Rs 478.80 on 19.36 lakh shares. It was the top gainer from the Sensex pack.
India's largest private sector steel maker by sales Tata Steel jumped 10.63% to Rs 263.35 on reports the company may accept an invitation from the Liberian government to rebid for a $1.6 billion iron ore mine from which is was initially barred.
Sesa Goa (up 8.04%), Steel Authority of India (up 7.55%), Hindustan Zinc (up 9.81%), and Hindalco Industries (up 14.48%), surged
Banking shares gained on hopes lower interest rates may boost lending growth. ICICI Bank (up 10.94%), and HDFC Bank (up 7.82%), gained.
India's largest bank in terms of assets and branch network State Bank of India (SBI) shot up 6.68% to Rs 1363. The bank reduced deposit rates by 25 basis points on all tenures with effect from today, 4 May 2009, which will help reduce cost of funds.
India's largest mortgage finance firm by total income HDFC vaulted 13.49% to Rs 1965 as Q4 March 2009 results beat market expectations. The firm during market hours today, 4 May 2009 reported a 4.52% fall in net profit to Rs 733.37 crore on 36.01% rise in total income to Rs 2317.67 crore in Q4 March 2009 over Q4 March 2008.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) gained 3.90% to Rs 1873 on 13.75 lakh shares. After market hours on Wednesday, 29 April 2009, RIL acquired Chevron Corporation's 5% stake in its unit Reliance Petroleum (RPL), hiking its stake to 75.38% in the refining unit.
RIL paid Rs 60 per share aggregating to Rs 1,350 crore, the same price at which the US firm had bought the stake in RPL in April 2006. According to an agreement signed at the time, Chevron had the right to increase its stake in RPL to 29% within three months of commissioning of the company's only-for-exports refinery at Jamnagar or exit the company completely. RPL commissioned the 5,80,000 barrels per day refinery in Jamnagar in December 2008.
India's largest oil exploration firm by sales ONGC gained 3.06% to Rs 892 and India's largest private sector oil exploration firm by sales Cairn India surged 8.74% to Rs 201.60 after US crude futures jumped $2.08 to at $53.20 a barrel, a four-week high on Friday, 1 May 2009, on support from improved US consumer confidence. Rising crude oil prices will boost the realization from crude sales.
However, shares of oil marketing firms HPCL (down 2.09%), BPCL (down 0.61%), fell. State-run oil marketing firms suffer revenue loss on domestic sale of petrol, diesel, LPG and kerosene at a controlled price. But IOC rose 1.04% to Rs 448.15, off day's low of Rs 430
Auto shares advanced as auto sales rose in April 2009. India's largest tractor maker by sales Mahindra & Mahindra shot up 10.44% to Rs 537 after the company said total sales of vehicles rose 14.85% to 23,004 units in April 2009 over in April 2008.
India's largest small car maker by sales Maruti Suzuki India gained 2.86% to Rs 839 after vehicle sales rose about 15% to 71,748 units in April 2009 over April 2008. The company unveiled the vehicle sales figures on 1 May 2009.
India's country's largest commercial vehicle maker by sales Tata Motors rose 6.17% to Rs 257.30. The company said its total sales declined 2% to 37,518 units in April 2009 over April 2008. Tata Motors however managed a marginal growth in domestic sales by registering a 1% increase in sales at 36,275 units in April 2009 over April 2008.
TVS Motor Company surged 5.44% to Rs 34.90 after two-wheeler sales rose 3% to 1,13,119 units in April 2009 over April 2008.
Hero Honda Motors rose 1.08% to Rs 1197 after its sales rose 29% at 3,70,575 units in April 2009 over April 2008
Outsourcing focussed IT stocks rose on speculation US government efforts to fix the banking system and revive the economy will pull the nation out of a recession. US is the biggest market for Indian IT firms.
India's largest software services exporter by sales TCS gained 6.21% and India's second largest software services exporter by sales Infosys advanced 8.21%
India's fourth largest software services exporter by sales HCL Technologies jumped 18.98% after the company signed a five-year, multi-million dollar outsourcing deal with US-based supply chain services firm UTi Worldwide to provide applications support and maintenance and infrastructure management services.
India's third largest software services exporter by sales Wipro advanced 10.74% to Rs 366 on reports the company is keen on making acquisitions in continental Europe.
IT stocks shrugged off a firm rupee. The rupee rose today, 4 May 2009 on hopes rise in stock markets may attract more capital inflows. The partially convertible rupee was at 49.61/62 per dollar, stronger than Wednesday's close of 50.04/05. The currency market was closed on Thursday and Friday for local holidays.
A stronger rupee affects operating profit of IT firms negatively as they earn most of their revenues from exports.
Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
India's largest realty developer by sales DLF rose 1.36% to Rs 234.05. The company on 1 May 2009 reported a 95.32% fall in net profit to Rs 29.86 crore on 96.56% fall in net sales to Rs 55.53 crore in Q4 March 2009 over Q4 March 2008.
Unitech (up 10.77%), HDIL (up 6.47%), and Indiabulls Real Estate (up 2.36%), advanced.
India's second largest cellular services provider by sales Reliance Communication jumped 5.77% to Rs 227.35. 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 biggest cellular services provider by sales Bharti Airtel rose 0.63% to Rs 754 after the company set up a venture with Alcatel-Lucent SA to manage its carrier's fixed-line and broadband Internet businesses. Alcatel-Lucent will hold a 74% stake in the venture with the Bhart Airtel owning the remainder. The stock had hit a day's high of Rs 792 in intra-day trade.
Reliance Industries topped turnover charts on BSE notching a turnover of Rs 258.18 crore, followed by ICICI Bank (252.36 crore), Educomp Solutions (153.13 crore), Reliance Capital (151.81 crore) and Unitech (151.49 crore).
Cals Refinery led the volume charts on BSE clocking volume of 7.13 crore shares followed by Unitech (3.14 crore shares), Reliance Natural Resources (1.21 crore shares), IDFC (99.15 lakh shares) and Suzlon Energy (92.69 lakh shares).
Among the side counters, Banswara Syntex (up 20%), Infotech Enterprises (up 19.98%), Mastek (up 19.98%), Surya Pharma (up 19.97%), Ruchi Soya (up 19.96%), Dabur Pharma (up 19.96%), GEE (up 19.92%), Mazda (up 19.88%), and RS Software (up 19.96%), jumped.
GHCL jumped 7.31% to Rs 31.55 after the company reported 115.10% surge in net profit to Rs 25.25 crore in Q4 March 2009 over Q4 March 2008.
ABB lost 2.97% to Rs 473 after the company's net profit slumped 33.4% to Rs 78.37 crore in Q1 March 2009 over Q1 March 2008.
Kesoram Industries soared 14.76% to Rs 176.90 after its net profit rose 51% to Rs 159 crore in Q4 March 2009 over Q4 March 2008.
Siemens jumped 9.31% to Rs 337 after net profit soared 13,485.50% to Rs 225.52 crore on 10.60% rise in net sales to Rs 2,382.96 crore in Q2 March 2009 over Q2 March 2008.
CESC surged 6.73% to Rs 249 after net profit rose 15.50% to Rs 410 crore on 9% rise in net sales to Rs 3,098 crore in the year ended March 2009 over the year ended March 2008.
In the derivatives segment, rollover of stock futures from April 2009 series to May 2009 series stood at 74%, higher than 70% in the previous series. Rollover of Nifty positions from April 2009 series to May 2009 series was 76% as compared with 77% seen in the previous series.
Due to rise in the prices of food and manufactured goods, inflation rate rose for a second straight week, government data showed on Thursday, 28 April 2009. Annual inflation rose to 0.57% in the week ended 18 April 2009 from 0.26% in the previous week.
The new government, which is likely to be in place this month, should take more fiscal measures to boost the economy rather than phasing out tax exemptions to businesses, industry body Federation of Indian Chambers of Commerce and Industry (FICCI) said during the weekend. The new government should not only continue, strengthen fiscal incentives and introduce new ones as and when economically warranted, especially for sunrise industries, and undertakings engaged in infrastructure and other crucial sectors, FICCI said.
Today domestic markets are likely to open with positive gap as majority of Asian markets have also opened with phenomenal gains on the back of positive cues from US markets. The domestic markets may once again trade in the northward direction as the scenario across other markets seems to be conducive. The month beginning is likely to bring some charm for the traders. There might be a possibility that the domestic markets may try to cope up with the two day closing in the previous week, when most of markets recorded remarkable gains.
On Wednesday, domestic markets bounced back with staggering gains. The traders closed there short coverings during the expiry of April F&O series. Huge buying prevailed in the broader level which was further bolstered by positive sentiments swung the Asian and European markets towards northward direction. The traders are bullish as May series is at premium and on rollover of long positions. Phenomenal buying was witnessed in sectors like IT, Bankex, Teck and Oil & Gas stocks as they spurred by 4.95%, 4.47%, 3.99% and 3.48% respectively. The abrupt positive gap opening was further pumped with a firm positive sentiment that resulted in more than recovery from yesterday’s losses. We expect the markets to be trading range bound.
The BSE Sensex closed higher by 401.50 points at 11,403.25 and NSE Nifty ended up by 111.60 points at 3,473.95. BSE Mid Caps and Small Caps closed with gains of 63.15 points and 52.58 points at 3,513.86 and 3,940.90 respectively. The BSE Sensex touched intraday high of 11,430.25 and intraday low of 11,091.56.
On Friday, the US stock markets closed in green. Despite some weak economic data the markets managed to close in green. The session was quite choppy however towards the end some late buying supported the markets. The energy stocks were the charm of the day with a remarkable gain of 3%. The energy sector''s rebound was helped along by higher energy prices; natural gas prices spiked 5.1% to close at $3.55 per contract, while crude oil futures finished pit trading with oil priced 3.4% higher at $52.84 per barrel. US light crude oil futures for June inclined by 3.4% at $52.84 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) inclined by 44.29 points to close at 8,212.41 The NASDAQ Composite (RIXF) index gained by 1.90 points to close at 1,719.20 and the S&P 500 (SPX) inclined by 4.71 points to close at 877.52.
Today major stock markets in Asia are trading positive. Shanghai composite is up by 56.15 at 2,534.08. Hang Seng is trading up by 576.64 points at 16,097.63 followed by, Strait Times which is up by 60.07 points at 1,980.35. While Taiwan Weighted is also up by 362.98 points at 6,355.55 and Seoul Composite points is also up by 19.08 points at 1,388.44 respectively. Japan’s Nikkei is up with phenomenal gains of 149.11 points at 8,977.37.
Indian ADRs ended mixed. In technology sector, Infosys ended down by 0.36% along with Satyam by 1.67%. Further, Wipro gained 0.96% whereas Patni Computers closed down by 1.02%. In banking sector ICICI Bank lost 0.39 % while HDFC Bank advanced by 1.24%. In telecommunication sector Tata Communication gained 0.04% whereas MTNL declined by 0.34%. Sterlite Industries increased by 0.35%.
The FIIs on Wednesday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 1,544.10 Crore and gross debt purchased stood at Rs 1,080.80 Crore, while the gross equity sold stood at Rs 1,718.00 Crore and gross debt sold stood at Rs. 201.80 Crore. Therefore, the net investment of equity and debt reported were Rs (173.90) Crore and Rs 879.00 Crore respectively.
On Wednesday, the Rupee closed at Rs.50.04/05, 0.5% stronger than its previous close of Rs. 50.52/53. The rupee gained strength on the back of phenomenal rise in the local stock markets.
On BSE, total number of shares traded were 41.98 Crore and total turnover stood at Rs 4,168.12 Crore. On NSE, total number of shares traded was 107.40 Crore and total turnover was Rs 15,524.28 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 225846398 shares, followed by Suzlon Energy with 38933772 shares, ICICI Bank with 18656793 shares, Tata Steel 16859539 shares and SAIL with 13031157shares respectively.
On NSE Future and Options, total number of contracts traded in index futures was 1268457 with a total turnover of Rs 21,241.92 Crore. Along with this total number of contracts traded in stock futures were 722945 with a total turnover of Rs 26,841.51 Crore. Total numbers of contracts for index options were 1743673 with a total turnover of Rs 29,847.12 Crore and total numbers of contracts for stock options were 53207 and notional turnover was Rs 2,132.85 Crore.
Today, Nifty would have a support at 3,512 and resistance at 3,578 and BSE Sensex has support at 11,545 and resistance at 11,695.
Earnings and economic reports indicate that worst might be over
Swine flu news dominated the US market for the week that ended on Friday, 01 May, 2009 with modest gains. Economic and earning reports continued to check in during the course of the week one after another. The reports, in most cases, pointed out that the worst might be over for the overall US economy in terms of the ongoing recession and things might have bottomed out and will only start to improve from now on.
The Dow Jones Industrial Average gained 136.12 points (1.7%) for the week to end at 8,212.41. Tech - heavy Nasdaq gained 24.91 (1.5%) to end at 1,719.20. S&P 500 gained 11.29 (1.3%) to end at 877.52.
During the middle of the week, advanced reading for first quarter GDP came in at a much weaker-than-expected -6.1% (consensus -4.7%). But stocks shrugged off the GDP figure and rallied ahead of the FOMC's rate decision and policy statement that afternoon. The FOMC kept its key interest rate in a range of 0.00%-0.25%, as expected.
Economic reports dominated the entire week. Consumer confidence came in at a better-than-expected 39.2 for April, well above the 29.7 consensus estimate. Chicago PMI's turn, as it came in at a better-than-expected 40.1 for April vs. the 35.0 consensus.
Finally, on Friday, the ISM Manufacturing Index for April came in at 40.1. That was much better than the 38.4 that was expected, and was also up from 36.3 in March. But economic conditions remained dour as factory orders for March declined 0.9%, which was worse than the 0.6% decline that was widely expected, and February orders were revised lower to reflect an increase of 0.7%. Also, U.S. consumer sentiment rose in April, but remained at relatively low levels, according to a survey released by the University of Michigan.
In the US market on Friday, 01 May, 2009, stocks started the day in a choppy mode. Volumes remained extensively low. But the indices managed to end the day with modest gains. Economic reports dominated the day. The Dow Jones Industrial Average ended higher by 44 points at 8,212. The Nasdaq Composite Index, ended higher by 1.9 points at 1,719.2. S&P 500 ended higher by 4.7 points at 877.5.
In the financial sector, the big headline of the day came late morning when a government source said it would announce information on the bank stress tests late afternoon on Thursday, 7 May, later than the original date of 4 May. This followed a slew of headlines on the tests throughout the week, mainly the one which stated that Bank of America and Citigroup might need to raise additional capital based on early results of the tests.
Among major earning reports of the week, Exxon Mobil's earnings results missed analysts' expectations. Chevron too reported that its first quarter profits have almost halved compared to last year.
Crude oil ended higher for the third straight day on Friday, 01 May, 2009 helping crude register its second consecutive weekly gain. Better than expected earning and economic reports gave some hopes that the worst might be over for the overall economy in terms of recession and things might just get better from here thereby increasing the demand for energy in the coming months. On Friday, crude-oil futures for light sweet crude for June delivery closed at $53.2/barrel (higher by $2.08 or 4.1%) on the New York Mercantile Exchange. For the week, crude ended higher by 3.2%.
For the year 2009, Dow and S&P 500 are down by 6.4nd 2.8% respectively. Nasdaq is up by 9%.
Key benchmark indices are seen opening strong, playing a catch up with global bourses after a long weekend, on the back of strong global cues. The SGX Nifty futures for May 2009 expiry surged 136.50 points in Singapore. However profit booking after eight consecutive weeks of rally, with the BSE Sensex surging over 32% since March 2009 lows cannot be ruled out.
Also political uncertainty, with polling for India's 15th Lok Sabha underway, may also prop volatility. 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.
HDFC, Allahabad Bank, Indian Overseas Bank, Century Textiles, among others will declare their March 2009 quarterly results today, 4 May 2009. Aggregate results of 1075 firms showed 4.1% fall in net profit on 5% rise in sales in Q4 March 2009 over Q4 March 2008.
Asian indices were trading higher today, 4 May 2009. Key benchmark indices in China, Hong Kong, Singapore, Taiwan, South Korea, and Japan rose by between 1.34% and 5.97%.
US stocks gained on Friday, 1 May 2009 as increasing oil prices pushed the energy shares higher and fresh economic data suggested that the key parts of the economy could be stabilizing. The Dow Jones industrial average gained 44 points to 8,212 . The Standard & Poor's 500 Index rose five points, to 876. The Nasdaq Composite Index edged up 2 points, to 1,719.
Back home, positive global cues and short covering in April 2009 derivatives contracts on expiry day boosted the bourses on Wednesday, 29 April 2009, in a volatile trading session. The BSE 30-share Sensex rose 401.50 points or 3.65% to 11,403.25, its highest closing since 14 October 2009 and the S&P CNX Nifty jumped 111.60 points or 3.32% to 3,473.95
As per reports, rollover of Nifty positions from April 2009 series to May 2009 series stood at 74% while those of stock futures were 76%.
The stock market remained shut on Thursday, 30 April 2009 as voting took place in Mumbai for the parliamentary elections and also on Friday, 1 May 2009 on account of Maharashtra Day.
As per the provisional figures on the NSE, foreign institutional investors (FIIs) bought shares
worth Rs 365.23 crore on Wednesday, 29 April 2009 while domestic institutional investors sold shares worth Rs 403.99 crore.
Reliance Industries increased its holding in Reliance Petroleum to 75.4% by buying Chevron’s 5% stake for Rs13.5bn. (ET)
IOC will take up 4% stake in ONGC-Reliance Industries alliance that plans to pick up stake in an oilfield in Venezuela. (ET)
Bharti Airtel entered into a JV with Alcatel-Lucent to manage its landline and broadband business. (ET)
Wipro won the Rs25bn contract from Unitech Wireless to provide IT services. (ET)
M&M enters into the sub-30HP tractor market. (FE)
PNB cuts its benchmark PLR by 50bps to 11%. (FE)
Siemens India will execute Rs7.2bn of the Rs13.8bn transmission contract awarded by Adani Power, balance will be executed by the German parent. (ET)
CL Technologies signed a 5 year multi-million dollar outsourcing deal with supply chain services firm UTi Worldwide. (ET)
Jindal Steel and Power is in advanced talks with Hudson Resources, Australia, to form a JV for exploration and mining of coking coal there. (ET)
Suzlon Energy has paid €30mn as part payment to Martifer SGPS SA for acquiring the latter’s stake in a Germany-based wind turbine maker.(TOI)
Solar power firm Cobol Technologies, owned by the promoters of Moser Baer, raises US$30mn through a sale of minority stake to Pangea Emerging Infrastructure Fund. (ET)
SREI Infrastructure Finance plans to raise up to Rs10bn from the market to meet its long term working capital requirements. (ET)
Balco is planning to close its plant-1, which produces 100,000 tonnes of aluminum every year, as the dip in prices makes production unprofitable.(BS)
Aditya Birla Nuvo plans to rejig its apparel business by opening 150 new stores at city centers, where footfall is higher, after closing 30 unviable stores.(BS)
Reliance Industries which faces possible penalties by the US administration for its business ties with Iran, has paid about Rs10mn for lobbying among US lawmakers.(BS)
Hindustan Unilever along with a few associations for glass and detergents, has filed writs in the Delhi and Bombay High Courts to get a stay against a safeguard duty imposition of 20% on import of soda ash from China.(BS)
Punj Lloyd Ltd is in talks with Areva NP and Westinghouse Electric for a tie-up to build nuclear power plants in the country.(BL)
Corus' US$480mn deal with a consortium of buyers to sell its Teesside steel mill "is in danger of being scrapped," leading British daily Financial Times has said.(DNA)
International Coal Ventures, an SPV created by five PSU majors including Coal India and SAIL, may bid for a coal block in Mozambique this month.(BL)
Reliance Gas Transportation Infrastructure has approached the competent authorities to seek a nod for the transportation tariff to be levied by it for ferrying Reliance Industries’ D6 Block gas.(BL)
Pipe manufacturer Man Industries has bagged a Rs13.5bn order from Middle East in April.(BL)
Jet Airways and Sahara India Commercial Corporation have told the Bombay High Court that both the parties would soon meet to sort out the ongoing issue related to the takeover deal of Sahara Airlines.(BL)
Tata Motors to bring Jaguar, Land Rover to India.(BL)
Tata Steel to consider restructuring the continental European operations of Corus. (BS)
GMR Infra may raise upto Rs30bn through PE route. (ET)
Sobha Developers plans to raise Rs3.5bn by offloading around 25% stake through preferential allotment and is expected to also evaluate the QIP route. (BS)
DLF plans to launch more mid-income housing projects in Kochi, Bangalore and Hyderabad, among other cities, and divest stakes in some hotel projects to generate liquidity in the current fiscal. (BS)
ACC has no plans to increase the prices of the commodity in Delhi. (BS)
DLF plans to raise Rs55bn through the sale of non-core assets such as power units and hotels to help it reduce its debt.
DLF is banking on Rs20bn of additional inflows from group company DLF Assets. (BS)
SBI reduces the interest rate on domestic term deposits by 25bps across maturities. (BS)
NTPC may set up 600MW hydel power plant in Bhutan. (ET)
Tata Steel may re-bid for Liberian mine. (ET)
Ranbaxy Laboratories is forced to withdraw all batches of a generic urinary infection antibiotic drug from the US market. (BS)
Talks between Jaguar Land Rover and the UK government over a financial aid package for the carmaker have reached an impasse. (ET)
Titan Industries to close its two Tanishq jewellery brand boutiques in the US. (ET)
Godrej Consumer is eyeing acquisitions worth US$1bn in emerging markets in this fiscal. (ET)
Reliance Industries may neither start any greenfield initiative nor raise new funds in this fiscal, as it looks to consolidate its diverse portfolio of biz. (ET)
ONGC Videsh and its partners, IOC and Oil India, are likely to invest about US$4bn to start production from a gas field they discovered in offshore Iran, in the next 3-4 years. (ET)
R-Power may not get entire Sasan coal. (ET)
GMR Infrastructure has tied-up funds for its 1,050MW power project in Kamalanga in Orissa (ET)
TCS has shelved plans to increase its headcount in Australia to around 2,000 (BS)
RNRL has decided to procure six ships for transportation of imported coal to its proposed 4,000MW UMPP in Krishnapatnam (ET)
IOC has forayed into the wind power sector by commissioning its first wind farm at Kandla in Gujarat (ET)
Wockhardt has reached an out-of-court settlement on three patent infringement cases in the US with Orion Corporation (BS)
Apollo Tyres to fully acquire a Netherlands-based premium tyre maker for an undisclosed sum (BS)
Parsvnath Developers is planning to cut its debt by a quarter by the end of FY10 (BS)
UTV earmarks Rs9bn for its movie production venture (BS)
Sterlite Technologies to raise Rs419mn by issuing warrants to promoters (BS)
Siemens, BHEL plans to form JV for manufacturing super critical and ultra super critical steam turbines. (ET)
Aditya Birla Nuvo is considering plans to raise fresh equity of about Rs15bn to finance the group’s life insurance business (BS)
L&T reaches an agreement to end a standoff over its 60MW Singoli-Bhatwari hydel project in Rudraprayag district of Uttarakhand (BS)
Inflation inches higher to 0.56% as food prices remain high. (ET)
State run banks will now charge 9.25% or less interest rate for the first 5 years on home loans up to Rs3mn. (ET)
Index of six core industries registered a growth of 2.9% in Mar’ 09 (ET)
New premium collection in the life insurance industry fell by 12% in Q4 FY09 to Rs348bn from Rs394bn last year. (ET)
Anti¬dumping duty on some auto parts likely.(Mint)
Mumbai Metropolitan Region Development Authority is planning a 100km network of monorail in the Mumbai metropolitan area in next seven years.(BL)
Government has extended the special dumping duty on nylon tyre cord fabric imports from China for another 5 years. (ET)
State run oil companies cut jet fuel prices by 1% in tandem with the international prices. (ET)
India’s crude oil output fell 1.8% in FY09 to 33.5mn tons. (ET)
Planning commission has proposed to set up a National Electricity Fund with a corpus of Rs1-1.5trn to finance the development of T&D network of the state utilities. (ET)
DoT panel mulls new 2G spectrum pricing formula.(BL)
Indian gas companies may soon boast their first gas swap arrangement that could slash transportation costs by more than 50%.(BS)
Airport developer to raise over Rs 18bn by pledging revenues from passenger charges.(BS)
India plans to increase stockpiles of the anti-influenza drug Tamiflu or its generic version by 10-fold, from 1mn to 10mn currently.(BS)
India’s exports declined a record 33.3% in March 2009, marking a contraction for the sixth consecutive month to US$11.5bn. (BS)
Number portability charges likely to be below Rs300. (BS)
India’s foreign exchange reserves increased by US$631mn to US$253.1bn during the week ended April 24. (BS)
Public-sector banks chalk out expansion plans to open at least 15,300 ATMs across the country by the end of this fiscal. (ET)
General insurance industry, comprising 16-odd players, has registered a drop in premium income growth for the fiscal 2008-09.(DNA)
Government has decided to create separate quality guidelines for medical devices and not treat them as drugs. (ET)
Government plans to impose a 20% safeguard duty on imported acrylic fibre (ET)
GSM mobile service providers are opposing an 11-digit mobile numbering proposal (BS)
Government may decide on steel safeguard duty next week. (ET)
Take calculated risks. That is quite different from being rash.
Today we expect the key Indian indices to rally as risk appetite is holding up globally. World markets were up while we enjoyed a long weekend. The intermediate trend remains up as things are looking up globally as well as back home. But, there is a likelihood of correction after 7-8 week’s rally. The outcome of the Lok Sabha could provide a trigger for that. Another cause for concern is the spread of swine flu and its economic fallout.
US Treasury’s stress test results will be out later this week, which will reveal the health of the large American banks. Monthly labour report is also due on Friday in the US. On the whole, key global data points show continued signs of improvement, though the recovery is still fragile. There may be a few more hiccups going ahead but not as bad as the ones suffered in October-November and in early March. The upside will hinge on persistent improvement in economic conditions, pick-up in earnings and foreign capital inflows.
One also must not forget that the generous doses of fiscal stimulus administered by most governments could lead to its own set of problems. Running large fiscal deficits leads to inflation, higher interest rates and debt, besides crowding out private borrowing. Countries like Germany and New Zealand have already expressed concern on this front, so has the RBI Governor. In short, the recovery will not be a walk in the park and one should brace for a bumpy ride.
Key Results Today: Allahabad Bank, Century Textiles, HDFC and Indian Overseas Bank.
FIIs were net buyers in the cash segment on Wednesday at Rs3.65bn (provisional) while the local institutions were net sellers of Rs4.04bn. In the F&O segment, the foreign funds were net buyers at Rs12.96bn. On Tuesday, FIIs pulled out Rs1.74bn from the cash segment.
US stocks ended higher on Friday, as encouraging reports on manufacturing and consumer sentiment raised optimism that the worst of the global recession may be behind us. All the three major stock benchmarks closed up for the week as well as for April.
Stocks slumped in the morning, fluctuated in the afternoon and then made a run higher near the close. The Dow and S&P 500 have now gained for seven of the last eight weeks. The Nasdaq has gained for eight weeks in a row.
Last week's gains are a continuation of strong gains made in April amid growing expectations that the world's largest economy is close to stabilising. For the month of April, the Nasdaq gained 12.3%, the S&P 500 gained 9.4% and the Dow Jones gained 7.3%.
Market experts say this improved undertone should continue to benefit stocks in the weeks ahead, but there could be some hiccups next week. There are some concerns about the results of the banks' 'stress tests' and its implications for the market.
The results of the stress tests of the nation's largest banks are now expected late on Thursday, according to reports. Results were initially expected to be released on Monday.
In major corporate developments, auto major Chrysler filed for Chapter 11 bankruptcy protection after failing to reach a deal with some of its smaller lenders to cut debt. But a deal has been negotiated to combine the company with Italian automaker Fiat, allowing Chrysler to stay in business. Chrysler is privately owned. Shares of rivals General Motors (GM) and Ford Motor slipped Friday after rallying on Thursday.
Separately, Ford reported a 31.6% drop in sales versus a year ago, a steeper decline than expected. But the pace of the decline was smaller than a month ago. GM said sales fell 33.2% from a year ago, beating forecasts. But sales were an improvement after the 45% decline in March. Toyota Motor reported a worse-than-expected April sales decline of 41.9%. Toyota's March sales fell 30.9% versus a year earlier.
In the day's economic reports, the Institute for Supply Management's (ISM) manufacturing index rose to 40.1 in April from 36.3 in March beating forecasts for a rise to 38.4. The report was consistent with recent signs that the pace of the economic slowdown is easing.
Another report showed that consumer sentiment improved in April. The University of Michigan's consumer sentiment index was revised up to 65.1 from a previous reading of 61.9. Economists had forecast no change.
A third report showed that March factory orders fell 0.9% after rising 0.7% in February. Economists predicted a 0.6% fall, on average.
Dow component Chevron reported a big drop in first-quarter sales and earnings, that missed expectations, due to a steep drop in energy prices. Shares of the No. 2 oil services firm ended higher.
Fellow Dow component Exxon Mobil reported weaker sales and earnings on Thursday. Shares gained 2%. MasterCard reported weaker quarterly earnings that topped estimates on weaker revenue that missed expectations. Shares fell nearly 6%.
Citigroup is selling its Japanese retail brokerage business to Sumitomo Mitsui Financial Group in a deal worth US$7.9 billion. Shares fell 2.6%.
Treasury prices slipped, raising the yield on the benchmark 10-year note to 3.15% from 3.14% on Thursday.
Lending rates were mixed. The 3-month Libor rate fell to 1.01% from 1.02% on Thursday. The overnight Libor rate rose to 0.24% from 0.23%. Libor is a bank-to-bank lending rate.
In currency trading, the dollar fell versus the euro and gained against the yen.
US light crude oil for June delivery rose US$2.08 to settle at US$53.20 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery fell US$3 to US$889 an ounce.
The majority of developed markets were closed on Thursday on account of Labour Day. Among the world markets that were open for trading, Japan's Topix added 1.1%, while the UK's FTSE 100 Index slipped less than 0.1%.
A sharp rally for European stocks on Thursday helped a key index to record its best-ever monthly performance in April. Trading over the 200-point mark for the first time since early February, the pan-European Dow Jones Stoxx 600 index jumped 1.5% to 200.23. This move brings gains for the month to 13.5% - the best monthly performance for the index since Stoxx started tracking the data at the end of 1986.
Germany's DAX 30 index rose 1.4% to 4,769.45, the UK's FTSE 100 index advanced 1.3% to 4,243.71 and the French CAC-40 index gained 1.4% to 3,159.85.
After a sharp cut on Tuesday, Indian markets staged a strong come back as bulls ended the week on a high. Strong cues from the Asian markets coupled with buying witnessed in the heavyweights lifted the key indices to end with healthy gains erasing previous day’s losses.
The BSE Sensex surged 401 points to close at 11,403 and the NSE Nifty rose by 111 points at 3,473.
Among the 30-components of Sensex, 29 stocks ended in the green and only Grasim ended in the negative terrain. Among the major gainers were ICICI Bank, Sterlite, JP Associates, Tata Power, Wipro and Reliance Infra.
Among the BSE Sectoral indices BSE Bankex index was the top gainer, the index gained 5%. Among the other major gainers were BSE IT index (up 4.4%), BSE Teck index (up 4%), BSE Oil & Gas index (up 3.7%) and BSE Power index (up 3.5%)
Market breath was positive, 1,406 advanced against 1043 declines, while, 90 remained unchanged.
For the week:
The BSE IT Index (up 4.2%): IT stocks were among the major gainers after the tech companies (both mid-caps and large caps) announced quarterly earnings without any major negative surprises.
The top gainers in the IT sector were TCS (up 6.8%), Wipro (up 6%), Infosys (up 4.2%) and Financial Tech (up 2.7%).
Patni surged 3% during the week. The revenues for the quarter stood at Rs79.54bn, a decrease of 11.4% as compared to Rs85.70bn in the earlier quarter. The operating income stood at Rs8.12bn, an increase of 7.7% as compared to Rs7.20bn in the earlier quarter.
The top losers were Sasken Communication (down 5.3%), Oracle Financial (down 1.7%) and Satyam (down 0.5%).
The BSE Consumer Index: The top losers in the consumer durables space were Videocon Industries (down 11.1%), Su-Raj Diamonds (down 1.8%), Titan (down 1.5%)
Blue Star surged 4.5% during the week.
The BSE Healthcare Index (up 0.1%): The top gainer in the Pharma space was Piramal Healthcare. The stock surged over 7% during the week. The net profit for the quarter increased by 59% at Rs1149mn as compared to Rs722.8mn.The total operating income was up by 9.3% to Rs8.5bn over Q4FY08.
Sun Pharma (up 6.9%), Lupin (up 1.6%), Astrazeneca Pharma (up 1.4%) and Panacea Biotec (up 0.9%) were among the major losers.
The top losers were Wockhardt (down 13%), Strides Arcolab (down 10.4%), Glenmark Pharma (down 9.1%), Orchid Chem (down 7.1%) and Ranbaxy Labs (down 5.6%).
The BSE Banking Index (up 1.7%): The top gainer in banking space was ICICI Bank. The stock was up 10.4% during the week. ICICI Bank posted a net profit of Rs7.44bn for the quarter ended March 31, 2009 compared to Rs11.5bn for the quarter ended March 31, 2008. Total Income decreased to Rs92.03bn for the quarter ended March 31, 2009 from Rs103.91bn for the quarter ended March 31, 2008.
Among the other major gainers were Bank of Baroda (up 7.1%), Axis Bank (up 5.2%), Federal Bank (up 5.2%) and Canara Bank (up 2%).
The top losers were Bank of India (down 12%), PNB (down 7.8%), Karnataka Bank (down 5.9%), IOB (down 5.5%) and Union Bank of India (down 4.2%).
The BSE Auto Index (up 0.7%): The top gainer in the auto space was M&M. Hero Honda gained 3.1% during the week. Hero group and Honda are reportedly considering plans to extend their 25-year-old partnership. Both the companies may look at sharing details of new products with each other, including engines, design sequences and vehicle platforms, says a financial newspaper.
Among the other major gainers were Eicher Motors (up 2.8%), Bajaj Auto (up 2.4%) and Swaraj Mazda (up 2.2%). The top losers were Ashok Leyland (down 5.7%) and Tata Motors (down 3.8%).
One of the key challenges before companies is to figure out what business they are really in. Once this is clear, everything else -- strategy, etc -- follows. If you know what you want to be, you know what to do.
Xerox Corp thought it was in the business of selling copiers. You had to hardsell the product, and convince the customer why he should invest money in expensive machines. But when the management probed a little deeper, it found that the customer's real need was making copies; owning a copier was incidental to the process. The change in the company's self-definition yielded significant benefits to both the company and its customers.
Governments, like companies, need to be clear about what business they are in. They do lots of things they shouldn't be doing, and don't do the things they should be. Most governments define their jobs as defending the country from external aggression, maintaining internal law and order, promoting economic and social development and ensuring a fair distribution of the fruits of growth.
But look closer: are these responsibilities that need to be done within government or should government merely be ensuring that someone does the job? When governments try to do too much, the net result is bureaucracy, waste, corruption and lack of accountability.
Gold registers 3% weekly drop in prices
Precious metals (gold) ended lower on Friday, 01 May, 2009. Prices dropped as earning and economic reports checked in better than expected on Friday reducing the appeal of precious metals as a safe bet for investment. But silver gained for the day.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Friday, Comex Gold for June delivery lost $3 (0.3%) to close at $888.2 an ounce on the New York Mercantile Exchange. For the week, gold ended lower by 3%. Year to date, gold prices are practically unchanged.
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 Friday, Comex silver futures for July delivery gained 17.5 cents (1.4%) at $12.5 an ounce. Year to date, silver has climbed 6.5% this year. For 2008, silver had lost 24%.
On Friday, the ISM Manufacturing Index for April came in at 40.1. That was much better than the 38.4 that was expected, and was also up from 36.3 in March. But economic conditions remained dour as factory orders for March declined 0.9%, which was worse than the 0.6% decline that was widely expected, and February orders were revised lower to reflect an increase of 0.7%.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Crude witnesses second consecutive weekly gains
Crude oil ended higher for the third straight day on Friday, 01 May, 2009 helping crude register its second consecutive weekly gain. Better than expected earning and economic reports gave some hopes that the worst might be over for the overall economy in terms of recession and things might just get better from here thereby increasing the demand for energy in the coming months.
On Friday, crude-oil futures for light sweet crude for June delivery closed at $53.2/barrel (higher by $2.08 or 4.1%) on the New York Mercantile Exchange. For the 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 68.8% since then. Year to date, in 2009, crude prices are higher by 14%. On a yearly basis, crude prices are lower by 51%.
On Friday, the ISM Manufacturing Index for April came in at 40.1. That was much better than the 38.4 that was expected, and was also up from 36.3 in March. But economic conditions remained dour as factory orders for March declined 0.9%, which was worse than the 0.6% decline that was widely expected, and February orders were revised lower to reflect an increase of 0.7%. Also, U.S. consumer sentiment rose in April, but remained at relatively low levels, according to a survey released by the University of Michigan.
Also at the Nymex on Friday, June reformulated gasoline rose 5.16 cents, or 3.5%, to $1.5174 a gallon and June heating oil gained 5.16 cents, or 3.9%, to $1.3884 a gallon.
June natural-gas futures added 16.5 cents, or 4.9%, to $3.538 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
We recommend a buy in the SRF stock from a short-term trading perspective. It is apparent from the charts of SKF that it has been on a medium-term up trend since its one-year low of Rs 62, recorded on February 3. Since this low the stock has been forming higher peaks and higher bottoms. While trending upward, the stock breached its 50-day moving average in late February and has been trading well above this average. Most recently the stock encounters resistance around Rs 95 and made a minor pullback to Rs 75 level. However, the stock resumed its medium-term uptrend after taking support from the up trendline around Rs 78. The daily relative strength index is on the verge of re-entering the bullish zone from the neutral region. Considering that the medium-term up trendline is intact, we are bullish on the stock from a short-term horizon. We expect the stock’s uptrend to continue until it hits our price target of Rs 94 in the upcoming trading sessions. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 81.
The last 45 days have seen heightened FII investment flows after nearly a quarter of lull and more than four quarters of gradual sell off.
The last month alone, FIIs have pumped in about $1 billion in stock markets.
These investors have restructured their portfolios to protect their interest in a volatile market, according to a study of FII investments patterns conducted by Mumbai-based, CNI Research on 394 companies listed on the stock exchanges in India.
The study covering the fourth quarter of fiscal 2009 reveals that there is a direct co-relation between FIIs hiking stake and their investment pattern with the company share performance.
“Wherever the FIIs have hiked stake, the share prices have gone up and conversely, wherever they have exited, the prices have lowered. Therefore, for an investor, this offers some broader hints at where to invest,” Mr Kishor Ostwal, Managing Director of CNI Research, said.
The Mumbai-based research company analysed 394 companies where FII stake has changed during the fourth quarter of 2008-2009.
The stake patterns of the 394 companies show that in 121 companies the FII stake has dropped below 5 per cent, in about 164 companies it is still above 5 per cent and in about 109 companies, they stepped up their holding.
Mr Ostwal told Business Line that the last four quarters have seen volatile markets and continuous efforts by the FIIs to restructure their portfolio. This was also compounded by tough markets back home where the FII come from.
This meant constant asset reallocation. However, for FIIs with sector specific mandate, say IT or real estate, it has been a tough way out, especially in a falling market.
“The research sought to analyse the co-relation between FII holding and stock prices. After the recent re-allocation of portfolio and heightened investment, it is time to have re-look at some of the stocks where FIIs have earlier exited due to tough market conditions due to pressure on some sectors. It won’t be long before they will come back to them,” he explained.
The study covered Maruti Suzuki, Grasim Industries, Infosys Technologies, Hero Honda, Lanco Infrastructur, HDFC, Colgate Palmolive, Tata Steel and host of others.