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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.
Bullion metals continue to shine
Precious metals gain on news that banks might raise additional capital
Precious metals ended higher on Tuesday, 05 May, 2009 at Comex. Prices rose today on reports that banks in US might raise additional capital in the near future 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 Tuesday, Comex Gold for June delivery gained $2.1 (0.2%) to close at $904.3 an ounce on the New York Mercantile Exchange. Earlier in the day, it rose to a high of $916.7. Last week, gold ended lower by 3%. Year to date, gold prices are higher by 1.7%.
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 Tuesday, Comex silver futures for July delivery gained 30.7 cents (2.3%) at $13.42 an ounce. Year to date, silver has climbed 13.7% this year. For 2008, silver had lost 24%.
On Tuesday, according to prepared remarks for his Joint Economic Committee testimony, Fed Chairman Bernanke stated that the U.S. economy is moving to resume growth later this year. However, Bernanke also stated that further sizable job losses are likely and inflation will remain low.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.
Prior to 2008, gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for June delivery closed lower by Rs 54 (0.4%) at Rs 14,379 per 10 grams. Prices rose to a high of Rs 14,538 per 10 grams and fell to a low of Rs 14,336 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 346 (1.6%) higher at Rs 21,791/Kg. Prices opened at Rs 21,516/kg and fell to a low of Rs 21,311/Kg during the day's trading.
Crude slips
Prices drop for first time in five sessions
Crude oil ended lower for the first time in five sessions on Tuesday, 05 May, 2009. Prices fell today as traders anticipated that tomorrow's inventory report by energy department will show rise in crude inventories for last week.
On Tuesday, crude-oil futures for light sweet crude for June delivery closed at $53.84/barrel (lower by $0.63 or 1.2%) 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 15.1%. On a yearly basis, crude prices are lower by 48%.
Market is expecting a build up of more than 2 million barrels of crude for last week. On Tuesday, according to prepared remarks for his Joint Economic Committee testimony, Fed Chairman Bernanke stated that the U.S. economy is moving to resume growth later this year. However, Bernanke also stated that further sizable job losses are likely and inflation will remain low.
Also at the Nymex on Tuesday, June reformulated gasoline fell 1.38 cents, or 0.9%, to $1.5722 a gallon and June heating oil lost 0.83 cent, or 0.6%, to $1.4262 a gallon.
Natural gas for June delivery slid 11 cents, or 3%, to $3.615 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 2,676/barrel, lower by Rs 2 (0.07%) against previous day's close. Natural gas for May delivery closed at Rs 178.4/mmbtu, lower by Rs 6.2/mmbtu (3.3%).
Market seen opening firm in volatile trade
Key benchmark indices are seen opening slightly higher mirroring mixed global cues. The SGX Nifty futures for May 2009 expiry rose 11 points in Singapore. However profit booking after the recent rally cannot be ruled out.
Volatility may swell as political uncertainty, with polling for India's 15th Lok Sabha underway. 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.
Asia-Pacific stocks were slightly higher ahead of US bank stress-test results on Thursday, 7 May 2009. Key benchmark indices in China, Hong Kong, Singapore, Taiwan, rose by between 0.39% and 2.79%. South Korea's Seoul Composite index fell 0.29%.
US stocks edged lower on Tuesday, 5 May 2009 as cautious investors were worried about bank stress test results and energy shares succumbed to the pressure of 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.
Meanwhile, US Federal Reserve Chairman Ben Bernanke told the US Congress Joint Economic Committee yesterday, 5 May 2009 that the US economy is on track for a recovery, but it will be slow. He said unemployment will continue to rise as businesses remain cautious about hiring.
Back home, the two key benchmark indices - the BSE Sensex and the S&P CNX Nifty saw divergent trend with the Sensex falling marginally and the S&P CNX Nifty rising slightly in what was a highly choppy trading session on Tuesday, 5 May 2009. The BSE 30-share Sensex ended marginally lower by 3.67 points, or 0.34%, to 12,092.96. The S&P CNX Nifty rose 7.90 points, or 0.22%, to 3,661.90, its highest closing since 3 October 2008.
Recovery in the Indian economy triggered a solid rally on the domestic bourses in the past few days. The rally was also a part of a sharp surge in global equities triggered by hopes the worst of the global economic recession may be over. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex jumped 3974.35 points or 48.70% to 12134.75 on 4 May 2009.
As per the provisional figures on the NSE, foreign institutional investors (FIIs) bought shares worth Rs 508.51 crore on Tuesday, 5 May 2009 while domestic institutional investors sold shares worth Rs 129.85 crore.
Asian stocks open on negative note
Asian stocks fell, as people familiar with the matter said Bank of America has the largest need for new capital among the 19 biggest US banks subjected to stress tests.
Hong Kong`s Hang Seng index fell 81.32 points, or 0.49%, to trade at 16,348.76.
China`s Shanghai Composite declined 5.77 points, or 0.22%, to trade at 2,561.57.
Taiwan`s Taiex index went up 81.81 points, or 1.28%, to trade at 6,461.75.
South Korea`s Kospi index shrank 2.41 points, or 0.17%, to trade at 1,395.51.
Singapore`s Straits Times dropped 16.91 points, or 0.82%, to trade at 2,057.44. (7:47 a.m., IST)
Japan`s Nikkei is not trading today.
GMDC
We recommend a buy in the Gujarat Mineral Development Corporation (GMDC) stock from a short-term perspective. It is apparent from the charts of GMDC that it has been on a medium-term uptrend since the March low of Rs 31. The stock has been forming higher peaks and higher lows since this trough. On April 15, the stock conclusively broke through a resistance at Rs 54, by gaining 10 per cent, with heavy volume. The stock resumed its uptrend on May 5 by surging 7 per cent following a minor pull back. We notice above average volume during the stock’s recent surge. GMDC is trading well above 21 and 50-day moving averages. The daily relative strength index (RSI) has re-entered in to the bullish zone from the neutral region and weekly RSI is steadily heading towards the bullish zone. Our short-term forecast on this stock is bullish. We expect the stock to move up further until it hits our price target of Rs 65 in the upcoming sessions. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 55.
Turnover surges
RIL, HDIL, SBI May 2009 futures at discount
Nifty May 2009 futures were at 3,659, at a discount of 2.90 points as compared to the spot closing of 3,661.90. Turnover in NSE's futures & options (F&O) segment surged to Rs 52,712.16 crore from Rs 46,344.80 crore on Monday, 4 May 2009.
Reliance Industries (RIL) May 2009 futures were at discount at 1881.15 compared to the spot closing of 1883.65.
Housing Development and Infrastructure (HDIL) May 2009 futures were at discount at 171.40 compared to the spot closing of 172.60.
State Bank of India (SBI) May 2009 futures were at discount at 1339.95 compared to the spot closing of 1345.20.
In the cash market, the S&P CNX Nifty gained 7.90 points or 0.22% at 3,661.90.
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