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Wednesday, May 13, 2009
BSE Bulk Deals to Watch - May 13 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
13/5/2009 512149 AVANCE TECHN VIHANGIDSHAH B 109270 11.95
13/5/2009 512149 AVANCE TECHN ROOPALJINESHSHAH B 100000 11.95
13/5/2009 512149 AVANCE TECHN JASMINSBAJORIYA S 50020 11.95
13/5/2009 512149 AVANCE TECHN BAKULRAMNIKLALPAREKH S 49250 11.95
13/5/2009 512149 AVANCE TECHN DEVANG MASTER S 110000 11.95
13/5/2009 531590 BILPOWER LT MONEY MATTERS (INDIA) PRIVATE LIMITED B 55000 89.26
13/5/2009 531590 BILPOWER LT SAPATRISHI PROPERTIES PVT LTD S 66171 89.25
13/5/2009 517001 BIRLA POWER JMP SECURITIES PVT LTD B 3166713 3.25
13/5/2009 517001 BIRLA POWER JMP SECURITIES PVT LTD S 3135881 3.22
13/5/2009 500147 CMI FPE ALPHA GRAPHIC INDIA LTD B 29500 244.40
13/5/2009 500147 CMI FPE JANAKCHIMANLALTHACKER S 29500 244.40
13/5/2009 526987 COMMIT CAP S PK GOYAL B 96706 6.68
13/5/2009 526987 COMMIT CAP S SRECKO INDHAN LIMITED S 100000 6.68
13/5/2009 532868 DLF LTD DEUTSCHE SECURITIES MAURITIUS LIMITED B 16255364 230.00
13/5/2009 532868 DLF LTD EURO PACIFIC GROWTH FUND B 31565967 230.00
13/5/2009 532868 DLF LTD COPTHALL MAURITIUS INVESTMENT LIMITED B 20067375 230.00
13/5/2009 532868 DLF LTD CAPITAL RESEARCH MGMT. CO. A/C EURO PACIFIC GROWTH FUND B 23684033 230.00
13/5/2009 532868 DLF LTD KAVITA SINGH S 10400000 230.00
13/5/2009 532868 DLF LTD KAVITA SINGH S 10400000 230.00
13/5/2009 532868 DLF LTD SIDHANT HOUSING AND DEVELOPMENT COMPANY S 26500000 230.01
13/5/2009 532868 DLF LTD RAJDHANI INVESTMENTS AND AGENCIES PRIVATE LIMITED S 46000000 230.01
13/5/2009 532868 DLF LTD SIDHANT HOUSING DEVELOPMENT COMPANY S 45500000 230.00
13/5/2009 532868 DLF LTD BULAND CONSULTANTS INVESTMENT PVT LIMITED S 27000000 230.00
13/5/2009 530407 EPIC ENERGY ASHOKPAMANI S 50000 27.73
13/5/2009 502223 EXCEL GLASSE ANILKABRA B 198000 2.01
13/5/2009 502223 EXCEL GLASSE IL AND FS FINANCIAL SERVICES LIMITED S 200000 2.01
13/5/2009 532022 FILAT FASH VANNA TRADINGCO PVTLTD B 33300 89.81
13/5/2009 532873 HOUSING DEV GENUINE STOCK BROKERS PVT. LTD. B 1871853 182.33
13/5/2009 532873 HOUSING DEV GENUINE STOCK BROKERS PVT. LTD. S 1871853 182.46
13/5/2009 530643 INFOTREK SYS BRIJKISHORKISHANGOPALSONI B 50000 11.41
13/5/2009 530643 INFOTREK SYS B K SONI HUF B 40000 11.41
13/5/2009 530643 INFOTREK SYS SARITA ANANDKUMAR GUPTA B 20000 11.41
13/5/2009 530643 INFOTREK SYS SARITA ANANDKUMAR GUPTA S 20000 11.41
13/5/2009 530643 INFOTREK SYS MAGNA UMBRELLA FUND PLC S 102085 11.41
13/5/2009 517063 JETKING INFO BINDU B. SHARMA B 37901 145.38
13/5/2009 517063 JETKING INFO KULDIP KUMAR SHARMA B 38215 148.07
13/5/2009 517063 JETKING INFO KULDIP KUMAR SHARMA S 38215 145.38
13/5/2009 517063 JETKING INFO BINDU B. SHARMA S 37901 148.08
13/5/2009 500304 NIIT LTD BIRLA SUN LIFE INSURANCE CO LTD B 1400000 30.00
13/5/2009 500304 NIIT LTD MORGAN STANLEY MAURITIUS COMPANY LIMITED S 945387 30.02
13/5/2009 531996 ODYSSEY CORP BHROSEMAND COMMODITIES PVT. LTD. B 36000 22.50
13/5/2009 512048 SPLASH MEDIA REKHA BHANDARI S 7014 47.10
13/5/2009 532890 TAKE SOLUT PASSPORT INDIA INVESTMENT (MAURITIUS) LIMITED B 5700000 24.40
13/5/2009 532890 TAKE SOLUT GALLEON INTERNATIONAL MASTER FUND SPC LTD NSRPSP S 5300000 24.40
13/5/2009 531390 UPSURGE INVS KIRIT V DAVE S 70000 5.50
13/5/2009 532765 USHER AGRO DRB SECURITIES PVT LTD B 250000 33.26
13/5/2009 532765 USHER AGRO EPOCH SYNTHETICS PVT LTD S 250000 33.26
13/5/2009 503349 VICTORIA MIL HARSUKHBHAI P DEGAMA B 700 1279.14
13/5/2009 503349 VICTORIA MIL HARSUKHBHAI P DEGAMA S 700 1235.14
13/5/2009 514470 WINSOME TEXT VIMALRAMNARAYANTOSHNIWAL B 30000 34.00
13/5/2009 514470 WINSOME TEXT UMESH SHYAMRAO KHESE S 30000 34.00
NSE Bulk Deals to Watch - May 13 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
13-MAY-2009,ADLABSFILM,Adlabs Films Limited,PARWATI CAPITAL MARKET PRIVATE LIMITED,BUY,331288,253.34,-
13-MAY-2009,ADLABSFILM,Adlabs Films Limited,PRB SECURITIES PRIVATE LTD.,BUY,292423,254.74,-
13-MAY-2009,BILPOWER,Bilpower Limited,MONEY MATTERS (INDIA) PVT.LTD,BUY,55000,89.25,-
13-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,5125714,3.12,-
13-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,JMP SECURITIES PVT LTD,BUY,3151205,3.14,-
13-MAY-2009,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,BUY,1861432,183.01,-
13-MAY-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1265227,15.60,-
13-MAY-2009,ADLABSFILM,Adlabs Films Limited,PARWATI CAPITAL MARKET PRIVATE LIMITED,SELL,322291,251.99,-
13-MAY-2009,ADLABSFILM,Adlabs Films Limited,PRB SECURITIES PRIVATE LTD.,SELL,272623,252.87,-
13-MAY-2009,BILPOWER,Bilpower Limited,SAPATRISHI PROPERTIES PVT LTD,SELL,58310,89.28,-
13-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,4925826,3.17,-
13-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,JMP SECURITIES PVT LTD,SELL,1513518,3.18,-
13-MAY-2009,DSKULKARNI,DS Kulkarni Dev. Ltd.,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,207472,32.82,-
13-MAY-2009,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,SELL,1861431,183.10,-
13-MAY-2009,SALORAINTL,Salora International Ltd.,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,51315,31.44,-
13-MAY-2009,SUZLON,Suzlon Energy Limited,RAMBHABEN UKABHAI TANTI,SELL,30000000,77.06,-
13-MAY-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1244170,15.57,-
Post Session Commentary - May 13 2009
The Indian market closed the volatile session on negative note due to the profit booking after strong rally in previous session. Benchmark indices plunged on the back of huge selling witnessed during the trading. Investors were cautious on political uncertainty as polling for 15th Lok Sabha to conclude today, but there is no clear picture of who would form the next government. Mixed US Index futures also contributed to the uncertainty.
The market opened above the previous close while turned volatile and slipped into negative soon after start. The US stock markets closed in mixed on Tuesday as investors bought healthcare and energy stocks. The domestic bourses turned volatile tracking mixed cues from the markets all over the world. Besides concerns for result of Lok Sabha election this weekend also fueled to the uncertainty. However, market tried to recover during final trading but was unable to sustain the momentum and slipped again to end the day with losses. Market ignored some positive sentiments from Asian stocks and continued to trade weak till end. BSE Sensex fell below 12,050 level and NSE Nifty below 3,650. From sectoral front, all indices ended in red barring Consumer Durables stocks. Besides, Metal, IT, FMCG, PSU, Oil & Gas and Bank stocks contributed to most of the selling pressure. Mid Cap and Small Cap stocks also remained out of favour.
Among the Sensex pack 22 stocks ended in red territory and 8 in green. The market breadth indicating the overall health of the market remained negative as 1336 stocks closed in red while 1154 stocks closed in green and 91 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 138.38 points at 12,019.65 and NSE Nifty ended down by 45.85 points at 3,635.25. BSE Mid Caps and Small Caps closed with losses of 4.79 and 20.50 points at 3,741.45 and 4,220.21 respectively. The BSE Sensex touched intraday high of 12,256.43 and intraday low of 11,934.44.
Losers from the BSE Sensex pack are Tata Steel (3.67%), Sterlite Industries (3.46%), ONGC Ltd (3.44%), JP Associates (2.90%), Maruti Suzuki (2.67%), SBI (2.57%), M&M Ltd (2.40%), TCS Ltd (2.36%), RCom (2.22%), HDFC Bank (2.22%) and ITC Ltd (1.85%).
Gainers from the BSE Sensex pack are ACC Ltd (3.37%), HDFC (3.03%), Grasim Industries (1.83%), Ranbaxy Lab (1.05%), Hindalco (0.92%) and Tata Motors (0.52%).
On the global markets front the Asian markets which opened before the Indian market, ended mostly up with rise in oil companies on stronger crude prices. However, investors remained cautious as a huge spring rally showed signs of weakness. Shanghai Composite, Nikkei 225, Straits Times and Seoul Composite index ended higher by 45.59, 41.88, 7.16 and 11.01 points at 2,663.77, 9,340.49, 2,185.29 and 1,414.52 respectively. However, Hang Seng lost 94.02 points at 17,059.62.
European markets which opened after the Indian market are trading in mixed as a drop in banking shares overshadowed gains in defensive stocks. In Frankfurt the DAX index is trading higher by 5.12 points at 4,859.23 whereas in London FTSE 100 is trading down by 17.02 points at 4,408.52.
The BSE Metal index dropped by (2.07 %) or 165.53 points at 7,812.99, on profit taking. Scrips that lost are Gujarat NRE C (3.85%), Welspan Gujarat SR (3.71%), Tata Steel (3.67%), Sterltie Industries (3.46%) and Akruti City (2.95%).
The BSE IT stocks decreased by (1.56%) or 44.13 points to close at 2,792.64 on US government plans to scrap tax incentives that encourage American firms to ship jobs overseas. Major losers are NIIT Ltd (6.07%), HCL Tech (3.90%), Financ Tech (3.38%), Aptech Ltd (2.93%) and TCS Ltd (2.36%).
The BSE FMCG index lost (1.54%) or 32.27 points to close at 2,059.42. Main losers are United Brew (3.75%), Tata Tea (2.36%), Nestle Ltd (2.18%) and Colgate Palm (2.03%).
The BSE PSU index ended lower by (1.47%) or 90.03 points at 6,016.45. Losers are St Trade Corp (5.30%), Neyveli LIG (5.02%), RECL Ltd (4.31%), ONGC Ltd (3.44%) and UCO Bank (3.03%).
The BSE Oil & Gas index also ended lower by (1.39%) or 120.38 points at 8,539.81. ONGC Ltd (3.44%), Essar Oil Ltd (2.84%), Cairn Ind (1.90%), RNRL (1.88%) and Reliance (1.04%) ended in negative territory.
The BSE Bank index lost (1.14%) or 71.29 points to close at 6,179.39. Main losers are Indus Ind Bank (3.67%), Karnataka Bank (2.61%), SBI (2.57%), Bank of India (2.56%) and HDFC Bank (2.22%).
Tata Consultancy Services lost 2.36%. The company announced that it has been selected to deliver TT transformation and support services to Volkswagen Group UK Ltd in a five year contract.
ONGC ended lower by 3.44%. The company has chalked out an investment plan of Rs.6,000 crore to invest in Western and Eastern Offshore fields to raise output in this fiscal.
DLF dropped by 1.59%. Company’ss promoters sold 9.9% stake or 168 million shares via block deal to institutional investors. DLF said the funds will be used for contractual obligation to DAL (DLF Assets) and for buying out DE Shaw stake in DAL.
Tata Steel tumbled 3.67%. The company plans to prepay more than £200 million (about Rs 1,500 crore at current exchange rates) of the non-recourse debt that it took to acquire Anglo-Dutch steel major Corus in 2007.
Piramal Life Sciences Limited advanced by 4.99%. The company has received regulatory approval by Drug Controller General of India (DCGI) for the initiation of two phase-l/ll combination studies of its cancer molecule P276 for pancreatic and head and neck cancer.
Educomp Solutions Ltd gained 2.01% as the company is seeking shareholders approval to hive off two divisions.
Sensex sheds 240 points from the day's high on fears of a fractured mandate in election
Fears of a fractured mandate in the parliamentary election pulled the market lower in what was a highly volatile trading session
. Volatility in index heavyweight Reliance Industries and banking and IT stocks caused volatility in the key benchmark indices. The BSE 30-share Sensex lost 138.38 points or 1.14%, off close to 240 points from the day's high and up close to 80 points from the day's low.
The BSE Sensex swung near the psychological 12,000 mark throughout the day. The barometer index settled above the 12,000 level
Even as the Sensex edged lower, select non-Sensex stocks surged. One among the prominent gainers was two wheeler major Bajaj Auto which jumped 7.4% to Rs 737.80
The market was volatile. The BSE Sensex dropped in early trade on profit taking after a firm opening triggered by gains in Asian stocks. The market recovered later in choppy trade with the Sensex regaining positive territory on firm Asian stocks. However, the recovery proved short-lived as the barometer index once again slipped into the red. The market extended losses in early afternoon trade on political uncertainty as no political party appeared likely to emerge as a clear in parliamentary elections.
The market cut losses later. The market surged to hit fresh intraday high in mid-afternoon trade. A sudden sell-off pulled the market lower later.
Volatility may remain high in the near futures ahead of the formation of the next government at the Centre. Pre-election surveys have pointed to a hung parliament, raising the prospect of a repeat of 1996 when the new administration collapsed after just 13 days.
Speculation that the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) is gaining in the elections triggered a solid surge on the domestic bourses on Tuesday, 12 May 2009. The BSE 30-share Sensex jumped 475.04 points or 4.07% to 12,158.03, its highest closing since 3 October 2008.
Before Tuesday's rebound, fears of a fractured mandate in the parliamentary polls had triggered a 3.58% fall in the BSE Sensex in two trading sessions to 11,682.99 on 8 May 2009 from 12,116.94 on 7 May 2009. The month-long parliamentary elections that began on 16 April 2009, concluded today, 13 May 2009.
The major news channels will start telecasting the exit poll results in a short while from now. The counting of votes takes place on Saturday, 16 May 2009. A party/alliance needs 272 seats in the 543-member parliament to claim power at the Centre.
With election for the final phase over just a while back, the ban on exit polls has been lifted - the Election Commission had put a ban on all exit polls in the country till the final phase elections are over. Major news channels such as CNN-IBN, TimesNOW, Star News, Aaj Tak, India TV and NDTV India are all set to telecast the exit polls today, based on their own permutations and combinations.
Indian stocks have risen sharply in the past two months on 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 3,997.63 points or 48.98% to 12,158.03 on Tuesday, 12 May 2009, its biggest closing in more than 7 months.
Heavy buying by foreign funds aided the rally. Foreign funds are aggressively buying Indian stocks. As per the provisional figures on NSE, foreign funds bought shares worth Rs 452.18 crore on Tuesday, 12 May 2009. FII inflow in May 2009 totaled Rs 4,692.70 crore (till 11 May 2009). FII inflow in calendar year 2009 totaled Rs 5,405.50 crore (till 11 May 2009).
European shares fell in choppy trade on Wednesday after the release of Bank of England's quarterly inflation Report in which it predicted British economy will shrink sharply in the coming months. Key benchmark indices in Germany, France and UK were down by between 1.17% to 1.74%.
The Bank of England (BoE) in its quarterly inflation report said its view on 2009 economic output is worse than in its February 2009 report, due to lower-than-expected activity in the first quarter. It could take longer for bank lending to return to normal than previously assumed, the BoE said. It also increased its estimate on inflation in the medium term, though it still sees CPI below its 2% target.
Most Asian stocks rose today 13 May 2009 on signs the global economic slowdown may be fading, with Nissan Motor powering ahead in Tokyo on hopes for an earnings turnaround. Key benchmark indices in China, Japan, South Korea, Singapore and Taiwan rose by between 0.33% to 1.74%. Hong Kong's Hang Seng fell 0.55%.
China's industrial production grew at a lower-than-expected rate of 7.3% in April 2009 as electricity output fell and exports tumbled. Industrial production had risen 8.3% in March 2009.
China's retail sales continued to expand at a rapid pace, data showed Wednesday. Retail sales rose 14.8% in April 2009 from a year earlier and in line with March 2009's 14.7% rise, according to data released by the National Bureau of Statistics. Expectations were for a rise between 14.5% and 15%. In the first four months of the year, retail sales were up 15%, a pace of growth unchanged from the first three months of the year.
The growth in retail sales adds to evidence that the Chinese government's 4 trillion yuan ($586 billion) stimulus plan is buoying domestic growth, while the global recession takes a toll on exports and related industries. Institutions with at least 80 billion yuan of assets in the past year will be allowed to set up financing companies to provide consumers with loans for buying appliances and other goods, according to draft rules issued by China Banking Regulatory Commission yesterday, 12 May 2009. Loans for cars and property are barred.
Trading in US index futures indicated Dow could fall 64 points in early trade on Wednesday, 13 May 2009.
Profit taking pulled US stocks lower for most of the session on Tuesday 12 May 2009. But markets picked up in the second half and finished mixed despite a lack of positive catalysts. Consumer and health care stocks rose, though weakness in technology and banks prevented larger gains. The Dow gained 50.34 points, or 0.6%, to 8,469.11. The S&P 500 index slipped 0.89 points, or 0.1%, to 908.35 and the Nasdaq fell 15.32 points, or 0.9%, to 1,715.92.
US foreclosure filings hit a record in April 2009, affecting one in every 374 housing units, and bank repossessions in particular may spike in the next few months, RealtyTrac reported today, 13 May 2009
Closer home, India's industrial output fell a steeper-than-expected 2.3% in March 2009 over March 2008, its third fall in four months government data showed on Tuesday. The manufacturing segment shrank by 3.3%. Mining rose by a modest 0.4% and electricity output climbed by a decent 6.3%. However, data showing a strong growth in consumer durables production in March 2009 reinforced expectations of a recovery of the economy. Production of consumer durables jumped 8.3% in March 2009 as compared to a 2% decline in March 2008.
The industrial production figure for February 2009 was revised to a 0.7% drop from a preliminary estimate of a 1.2% decline.
Meanwhile, initial estimates showed that India's exports dropped 33% to $10.7 billion in April 2009. Imports fell a sharper 35% to $16 billion in April 2009 on the back of low oil prices, falling exports and a deceleration in manufacturing activity and investment.
The BSE 30-share Sensex lost 138.38 points or 1.14% to 12,019.65. The Sensex rose 98.40 points at the day's high of 12,256.43 in mid-afternoon trade. At the day's low of 11,934.44, the Sensex fell 223.59 points in early afternoon trade.
The S&P CNX Nifty fell 45.85 points or 1.25% to 3,635.25. Nifty May 2009 futures were at 3629, at a discount of 6.25 points as compared to the spot closing of 3635.25. Turnover in NSE's futures & options (F&O) segment surged to Rs 64035.11 crore from Rs 53677.79 crore on Tuesday, 12 May 2009.
BSE clocked a turnover of Rs 9767 crore much higher than Rs 4,943.62 crore on Tuesday, 12 May 2009, thanks to a large block deal in DLF.
The market breadth, indicating the overall health of the market, was negative. The breadth swung between positive and negative zone in the second half of the trading session. On BSE, 1,166 shares rose as compared with 1,351 that fell. A total of 59 shares remained unchanged.
From the 30 share Sensex pack, 22 stocks fell and rest gained.
From 9,647.31 on 31 December 2008, the BSE Sensex has risen 2,372.34 points or 24.59% in calendar year 2009.
The BSE Mid-Cap index fell 0.13% and the BSE Small-Cap index slipped 0.48%. However, both these indices underperformed the Sensex.
The BSE Consumer Durables index (up 0.09%), the BSE Healthcare index (down 0.45%), the BSE Auto index (down 0.46%), the BSE Capital Goods index (down 0.56%), the BSE TECk index (down 0.85%), the BSE Realty index (down 0.96%), the BSE Power index (down 0.98%), outperformed the Sensex.
The BSE Bankex fell 1.14% and matched the performance of benchmark index BSE Sensex.
The BSE Metal index (down 2.07%), the BSE IT index (down 1.56%), the BSE FMCG index (down 1.54%), the BSE PSU index (down 1.47%), the BSE Oil & Gas index (down 1.39%), underperfomed the Sensex.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.04% to Rs 1937.90 on profit taking after a recent surge. The stock was volatile. It hit the high of Rs 1,975 and a low of Rs 1,907.10. 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.
Ratnagiri Gas & Power, which supplies electricity to the western Indian state of Maharashtra, on Friday, 8 May 2009, agreed to buy natural gas from an offshore field operated by Reliance Industries.
Outsourcing focussed IT stocks fell in choppy trade on US government plans to scrap tax incentives that encourage American firms to ship jobs overseas. India's second largest software services exporter by sales Infosys was down 1.51% to Rs 1,573.85. The stock hit a high of Rs 1,598.80 and a low of Rs 1,558. Its American depository receipt (ADR) rose 2.58% on Tuesday.
India's largest software services exporter by sales TCS was down 2.36% to Rs 622.45. The stock hit a high of Rs 645 and a low of Rs 617. TCS said today it has been selected for a five-year IT services contract for auto maker Volkswagen group's operations in the United Kingdom.
India's third largest software services exporter by sales Wipro was down 0.13% to Rs 374.75. The stock hit a high of Rs 390.95 and a low of Rs 365.50. Its ADR rose 6.05% on Tuesday.
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. On 4 May 2009, US president Barack Obama 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 dis-incentivise 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.
The Indian rupee was weak amid choppy trade. The rupee was at 49.64 per dollar, below its previous close of 49.26/28. A weak rupee boosts revenues of IT firms in rupee terms as IT companies earn a lion's share of revenue from exports.
Bank stocks fell in volatile trade on profit taking after a recent rally. India's biggest bank in terms of branch network State Bank of India was down 2.57% to Rs 1,262.15. The stock hit a high of Rs 1,309 and a low of Rs 1,255. SBI reported a forecast-beating 45.6% rise in net profit to Rs 2742.31 crore on a 34.6% increase in operating income to Rs 22060.61 crore in Q4 March 2009 over Q4 March 2008. Profit was boosted after gains from trading trebled and loan demand soared as borrowers scrambled for funds in a slowing economy. The bank announced the results on Saturday, 9 May 2009.
India's largest private sector bank by net profit ICICI Bank was down 1.61% to Rs 549.65. The stock hit a high of Rs 567.80 and a low of Rs 541.50.. Its American depository receipt (ADR) rose 3.88% on Tuesday, 12 May 2009.
India's second largest private sector bank by operating income HDFC Bank was down 2.21% to Rs 1,163.30. The stock hit a high of Rs 1,199 and a low of Rs 1,147. Its ADR fell 0.27% on Tuesday.
India's biggest dedicated housing finance firm by operating income HDFC rose 3.03%.
Metal stocks fell even as copper climbed for a second day in Asia as investors deemed April 2009's record Chinese imports a sign of improving demand in the world's top metals consumer. Tata Steel, Steel Authority of India, Sterlite Industries, National Aluminum Company, fell by between 2.95% to 3.67%.
China's purchases of copper and copper products reached a record 399,833 metric tons last month, compared with 374,957 tons in March 2009. Still, a deepening slump in the nation's exports, which declined 22.6% in April 2009 over April 2008, capped the metal's gains.
FMCG stocks fell on profit taking after they rose recently triggered by expectations of a surge in sales due to forecast of a good monsoon this year. ITC, Tata Tea, Nestle India, Dabur India, Britannia Industries fell by between 0.01% to 2.36%. FMCG firms derive a substantial revenue from rural markets.
India's largest FMCG major by sales Hindustan Unilever fell 1.51% as it reported a lower-than-expected rise of 3.68% in net profit to Rs 394.99 crore on a 6% rise in sales to Rs 3988.33 crore in Q4 March 2009 over Q4 March 2008. Profit fell short of expectations mainly due to provision for retirements and restructuring costs. The company announced the result on Sunday, 10 May 2009.
Realty stocks fell on profit taking after recent surge. Unitech, Omaxe, Akruti City fell by between 0.53% to 3.24%.
DLF fell 1.59% to Rs 232.50 after two block deals of 8.4 crore shares each were struck at an average price of Rs 233.50 a piece whereby the founders sold 16.8 crore shares, or nearly 10% of the firm's equity.
Before trading started, promoters of DLF had informed the stock exchanged today, 13 May 2009, that they will offload 16.8 crore shares, or nearly 10% of the firm's equity. DLF promoters said the funds raised through the share sale would be used to infuse capital in its property trust DLF Assets (DAL) and also to purchase private equity D.E. Shaw's stake in DAL. DE Shaw had invested $400 million in DAL in 2007 and is due to exit by the end of the month under an agreement.
Capital goods stocks fell on profit taking after a recently strong rally. India's biggest engineering & construction firm by revenue Larsen & Toubro (L&T), last month, lost 1.01%. L&T on 16 April 2009 said the company expects its order inflow to grow by 25-35% in the year ending March 2010 (FY 2010).
Bharat Heavy Electricals, Gammon India, Praj Industries, Areva T&D, fell by between 0.29% to 4.3%.
Suzlon Energy fell 5.07% to Rs 76.75 after about 3 crore shares, or 2% of its equity changed hands in a single block deal at Rs 82 a share on the National Stock Exchange.
Some healthcare stocks fell on profit taking after they rose recently as most of the healthcare firms reported better than expected Q4 March 2009 result. Dr Reddy's Laboratories, Piramal HealthCare, Biocon, Glenmark Pharmaceuticals, Sun Pharmaceutical Industries fell by between 0.85% to 3.67%.
Telecom stocks fell on recent reports the telecom regulator has notified mobile number portability (MNP) from September 2009. Reliance Communications and Idea Cellular, fell by between 1.32% to 2.22%, on fears that mobile users will hop service providers at a faster rate when MNP is introduced. Once MNP comes in force, it could force GSM operators to increase capital expenditure to improve service quality in the top-tier telecom zones in a bid to retain existing users.
But, India's largest telecom services provider by sales Bharti Airtel rose 0.35% after the company added 2.81 million mobile users in April 2009, taking total customers base to 96.7 million.
DLF clocked the highest volume of 17.98 crore shares on BSE. Cals Refineries (2.44 crore shares), Unitech (2.22 crore shares), Suzlon Energy (2.17 crore shares) and Birla Power Solutions (1.74 crore shares) were the other volume toppers in that order.
DLF clocked the highest turnover of Rs 4,1531.15 crore on BSE. Reliance Industries (Rs 284.08 crore), Reliance Capital (Rs 267.96 crore), ICICI Bank (Rs 256.81 crore) and Housing Development & Infrastructure (Rs 244.42 crore) were the other turnover toppers in that order.
India Votes 2009 - DP VERDICT
BJP/NDA
642 (60.x%)
Congress/UPA
365 (34.x%)
3rd Front/Khichidi
26 (2.x%)
4th Front/More Khichidi
25 (2.x%)
TOTAL VOTES: 1058
DISCLAIMER: These votes are mostly from Big cities and metros and may not represent the views of the entire country. And also, lot of voters may be from Gujju community who would prefer the NDA. It's also true that the stock community prefers the BJP and its allies for the markets
Let's wait and watch who our next PM would be and respect the verdict. Hopefully, the country has given a clear verdict and not a split verdict.
Here are the exit poll results from various pollsters
Exit Poll Source | BJP+ | CONGRESS+ | THIRD FRONT | OTHERS |
CNN-IBN | 165-185 | 185-205 | 110-130 | 70-100 |
Times Now | 183 | 198 | 112 | 50 |
Headlines Today | 180 | 191 | 38 | 134 |
India TV | 194 | 195 | 108 | 46 |
News X | 191 | 199 | 104 | 48 |
UTVi | 189 | 195 | - | 14 |
Star News | 196 | 199 | 100 | 36 |
Mumbai Satta-Bazar | 190-200 | 160-180 | - | - |
Rajasthan Satta-Bazar | 125 | 145 | - | - |
Congress (in house) | 168 | 205 | - | 164 |
BJP (in house) | 220 | 170 | - | 153 |
Our country certainly deserves better than what we get from our politicians.
Thank you all for the amazing participation !
Mixed finish at Wall Street
Dow manages to erase earlier losses and end higher
Stocks at Wall Street ended on a mixed mode on Tuesday, 12 May, 2009. The Dow ended higher while Nasdaq and S&P 500 ended lower. US stocks had been lingering in the red in a day where there has been no major news flow. Crude prices ended higher today.
The Dow Jones Industrial Average ended higher by 50 points at 8,469. The Nasdaq Composite Index, ended lower by 15 points at 1,715. S&P 500 ended lower by 0.89 points at 908.8.
Exxon Mobil, Chevron and Wal-Mart, were the main Dow winners today. JP Morgan Chase, American Express, and Citigroup were the main Dow decliners.
The weakness in the market was broad based. But weakness mainly came from the technology and financial sectors.
There was absolutely no market moving news since morning today. Dow had climbed up higher after the economic report on trade deficit hit the wires today.
The Commerce Department reported on Tuesday, 12 May, 2009, that the U.S. trade gap with the rest of the world increased in March for the first time in eight months, as exports declined faster than imports.
The trade deficit, the difference between exports and imports, increased by 5.5% to $27.6 billion in March from a nine-year low of $26.1 billion in February as the global recession tightened in major U.S. trading partners in North America, Europe and Asia.
Led by a big decline in capital-goods sales, exports of goods and services fell 2.4% to a seasonally adjusted $123.6 billion in March, the lowest level since August 2006. Nominal exports were down 17% in the past year.
Meanwhile, imports of goods and services fell 1% to $151.2 billion, led by declining purchases of natural gas, clothing and industrial engines. Imports were at the lowest level since September 2004 and were down 27% in the past year.
Microsoft was one of the main Dow laggards today after the company said that it will issue $3.75 billion of senior unsecured notes to help fund working capital requirements, capital expenditures, or share repurchases.
Crude oil ended higher on Tuesday, 12 May, 2009. Prices rose today due to the weak dollar and also on reports that crude imports to China during April registered substantial increase. On Tuesday, crude-oil futures for light sweet crude for June delivery closed at $58.85/barrel (higher by $0.35 or 0.6%) on the New York Mercantile Exchange. Earlier, it fell to $57.81 and also rose to $60.08. Last week, crude ended higher by 10.2%.
China's customs department reported today that the country's imports increased by 13.6% last month to 16.17 million metric tons, or 3.9 million barrels a day. April's imports were still lower compared with the 16.34 million tons China bought from abroad in March, the highest in a year. The country imports about half of its oil consumption, which stood at 7.8 million barrels a day.
EIA said today in a monthly report that it now projected world oil demand to fall by 1.8 million barrels per day in 2009, a decline that is 400,000 barrels larger than the EIA had forecasted last month. The report also said that oil prices will remain flat for the remainder of the year, averaging about $55 a barrel.
In the currency market on Tuesday, the greenback was relatively weak and the dollar index, which weighs the strength of dollar against the basket of six other currencies was down 0.8% at $82.612.
Earnings and economic reports will be in focus tomorrow. Earning reports will feature prominent retailers like Kohl's, Macys and Wal Mart. Economic data will be in focus, with April retail sales at 8:30ET, April import/export prices at 8:30ET and March business inventories at 10:00ET. In addition, the weekly crude inventory report is due at 10:30ET.
Pre Session Commentary - May 13 2009
Today domestic markets are likely to open positive as the Asian markets have opened with phenomenal gains. The narrow trade deficit data of US for the month of March shows some signs of improvement in international trade of US with other nations. Despite the contraction of 2.3% in IIP data for the month of March and also the exports falling by 33% to $10.7 billion, domestic markets rallied by whopping numbers yesterday. The participation of FIIs would play a crucial role in deciding today’s markets as well. There are also news about MFs holding a total cash of Rs. 14,000 crore, just waiting for some correction in the domestic markets. One could witness volatility creeping in as traders may book some profits on yesterday’s huge gains.
On Tuesday, the domestic markets closed with whopping gains. The session started with a subdued trading, however the rumor of BJP likely to come to power on the back of Bahujan Samajwadi Party’s president Chief Minister of U.P. support lifted the markets phenomenally. FIIs also played a crucial role in lifting the markets to northward. FIIs and Pension Funds traded hugely on the frontline stocks. IT and Bankex were the favourite picks for the day as they gained by 5.19% and 4.83% respectively. Bad IIP numbers for the month of March hardly affected the bullish sentiments of domestic as well as international traders. Mid and Small cap indices were little sluggish in their move as compared to the bench mark indices. We expect the markets to be trading positive with an essence of volatility.
The BSE Sensex closed high by 475.04 points at 12,158.03 and NSE Nifty ended with a gain of 126.50 points at 3,681.10. BSE Mid Caps and Small Caps closed with gains of 34.82 points and 55.39 points at 3,746.24 and 4,240.71 respectively. The BSE Sensex touched intraday high of 12,194.63 and intraday low of 11,625.39.
On Tuesday, the US stock markets closed mixed. There was lack of any specific news to drive the markets. The Large cap stocks of technology and financial sectors witnessed some selling pressures. Bank of America witnessed sell off pressures as traders were unimpressed by news that the company is selling a partial stake in China Construction Bank for $7.3 billion to a consortium of buyers. On the macro economic front, U.S. trade deficit widened to $27.6 billion in March, which is the first time in eight months that the deficit widened. However, the increase comes off of February''s $26.1 billion deficit, which was the narrowest deficit since 1999. US light crude oil futures for June closed fractionally higher by 0.6% at $58.85 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) gained by 50.34 points to close at 8,469.11 The NASDAQ Composite (RIXF) index declined by 15.32 points to close at 1,715.92 and the S&P 500 (SPX) closed flat at 908.35.
Today major stock markets in Asia are trading positive. Hang Seng is trading up by 112.19 points at 17,265.83 followed by Shanghai Composite which is also up by 12.15 points at 2,630.32. Japan''s Nikkei is up by 36.75 points at 9,335.36, Strait Times is up by 16 points at 2194.13. Seoul Composite is also flat at 1,405.72 respectively.
Indian ADRs ended mostly higher. In technology sector, Infosys ended up by 2.58% along with Wipro by 6.05%. Further, Satyam gained 1.08% whereas Patni Computers lost 1.36%. In banking sector ICICI Bank gained 3.88% while HDFC Bank dropped by 0.27%. In telecommunication sector Tata Communication increased by 3.04% while MTNL lost 0.69%. Sterlite Industries increased by 1.66%.
The FIIs on Tuesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 1,684.40 Crore and gross debt purchased stood at Rs 618.60 Crore, while the gross equity sold stood at Rs 1,501.90 Crore and gross debt sold stood at Rs. 593.90 Crore. Therefore, the net investment of equity and debt reported were Rs 182.40 Crore and Rs 24.70 Crore respectively.
On Tuesday, the partially convertible rupee ended at 49.30/31 per dollar, 20 paise stronger than previous close at 49.52/54. Rupee gained on the back of phenomenal rise in the domestic stock markets asserting expectations of greenback inflow.
On BSE, total number of shares traded were 41.51 Crore and total turnover stood at Rs 4,380.10 Crore. On NSE, total number of shares traded was 97.05 Crore and total turnover was Rs 15,554.95 Crore.
Top traded volumes on NSE Nifty – Unitech with 101016841 shares, Suzlon Energy with 54244786 shares, DLF with 17625083 shares, Hindalco with 15771918 shares followed by SAIL with 14943022 shares.
On NSE Future and Options, total number of contracts traded in index futures was 928686 with a total turnover of Rs 15,984.02 Crore. Along with this total number of contracts traded in stock futures were 424997 with a total turnover of Rs 17,721.73 Crore. Total numbers of contracts for index options were 1005381 with a total turnover of Rs 18,597.49 Crore and total numbers of contracts for stock options were 30594 and notional turnover was Rs 1,374.54 Crore.
Today, Nifty would have a support at 3,630 and resistance at 3,735 and BSE Sensex has support at 12,040 and resistance at 12,395.
Bias may remain bullish
The positive Asian indices in morning trades and prevailing bullish trend likely to generate optimism in morning trades. The market may see some short-term profit bookings in frontline stocks which may create a volatility in the afternoon. Among the domestic indices, the Nifty could test higher levels of 3720 and may dip to 3650 on the downside. The Sensex has a likely support at 12000 and may face resistance at 12300.
Blue chips gained and the Nasdaq declined in a mixed Tuesday session on Wall Street as investors showed caution after the recent rally and amid ongoing worries about banks and autos. As a Result the Dow gained 50 points to close at 8469, the Nasdaq also ended weak with loss of 15 points at 1716.
Indian ADRs had a mixed outing on Friday. Wipro was the major gainer amongst the ADRs and gained 6.05%, while Infosys, Satyam, Dr Reddy, ICICI Bank, VSNL and Tata Motors were up around 1-3% each. Among the losers Rediff shed 5.06% and HDFC Bank, MTNL and Patni Computers fell around 1% each.
Crude oil prices moved up, while the Nymex light crude oil for June series went up by 84 cents at $59.69 a barrel. In the commodity segment, the Comex gold shot up by $10.40 to settle at $923.90 an ounce.
Market may open higher on gains in Asian stocks
The market may open higher on positive cues from the Asian markets. The market sentiment remains firm due to sustained buying by foreign funds. However, political uncertainty may cause volatility on the bourses in the next few days.
Speculation that the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) is gaining momentum in the ongoing parliamentary elections triggered a solid surge on the domestic bourses on Tuesday, 12 May 2009. The BSE 30-share Sensex jumped 475.04 points or 4.07% to 12,158.03, its highest closing since 3 October 2008.
Before Tuesday's rebound, fears of a fractured mandate from the parliamentary polls had triggered a 3.58% fall in the BSE Sensex in two trading sessions to 11,682.99 on 8 May 2009 from 12,116.94 on 7 May 2009. Today is the last day of the month-long parliamentary elections that began on 16 April 2009. Exit polls will be announced after the last round of voting ends on Wednesday and the election results are due on Saturday, 16 May 2009. A party/alliance needs 272 seats in the 543-member parliament to claim power at the Centre.
Heavy buying by foreign funds has bolstered sentiment on the stock markets. Foreign funds are aggressively buying Indian stocks. As per the provisional figures on NSE, foreign funds bought shares worth Rs 452.18 crore on Tuesday, 12 May 2009. FII inflow in May 2009 totaled Rs 4,692.70 crore (till 11 May 2009). FII inflow in calendar year 2009 totaled Rs 5,405.50 crore (till 11 May 2009).
Most Asian stocks rose today 13 May 2009 on signs the global economic slowdown may be fading, with Nissan Motor powering ahead in Tokyo on hopes for an earnings turnaround. Key benchmark indices in China, Japan, South Korea, Singapore and Taiwan rose by between 0.01% to 0.96%. But Hong Kong's Hang Seng was down 0.02%.
China's industrial production grew at a lower-than-expected rate of 7.3% in April 2009 as electricity output fell and exports tumbled. But retail sales climbed. Industrial production had risen 8.3% in March 2009.
Profit taking pulled US stocks lower for most of the session on Tuesday 12 May 2009. But markets picked up in the second half and finished mixed despite a lack of positive catalysts. Consumer and health care stocks rose, though weakness in technology and banks prevented larger gains. The Dow gained 50.34 points, or 0.6%, to 8,469.11. The S&P 500 index slipped 0.89 points, or 0.1%, to 908.35 and the Nasdaq fell 15.32 points, or 0.9%, to 1,715.92.
Back home, India's industrial output fell a steeper-than-expected 2.3% in March 2009 over March 2008, its third fall in four months government data showed on Tuesday. The manufacturing segment shrank by 3.3%. Mining rose by a modest 0.4% and electricity output climbed by a decent 6.3%. However, data showing a strong growth in consumer durables production in March 2009 reinforced expectations of a recovery of the economy. Production of consumer durables jumped 8.3% in March 2009 as compared to a 2% decline in March 2008.
The industrial production figure for February 2009 was revised to a 0.7% drop from a preliminary estimate of a 1.2% decline.
Meanwhile, initial estimates showed that India's exports dropped 33% to $10.7 billion in April 2009. Imports fell a sharper 35% to $16 billion in April 2009 on the back of low oil prices
, falling exports and a deceleration in manufacturing activity and investment.
Indian market has risen sharply in the past two months on 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 3,997.63 points or 48.98% to 12,158.03 on Tuesday, 12 May 2009.
Asian stocks open on positive note
Asian stocks rose as forecasts from Olympus Corp and Nissan Motor boosted confidence that the corporate earnings are recovering from the global recession.
Nissan gained 5.5% after predicting a narrower loss than analysts estimated.
Japanese benchmark index Nikkei gained 19.91 points, or 0.21%, to trade at 9,318.52.
Hong Kong`s Hang Seng index declined 55.82 points, or 0.33%, to trade at 17,097.82.
China`s Shanghai Composite advanced 1.67 points, or 0.06%, to trade at 2,619.84.
Taiwan`s Taiex index went up 56.43 points, or 0.88%, to trade at 6,488.98.
South Korea`s Kospi index increased 5.07 points, or 0.36%, to trade at 1,408.58.
Singapore`s Straits Times rose 1.51 points, or 0.07%, to trade at 2,179.64. (7.41 a.m., IST)
Bullion metals end higher
Precious metals rise due to weak dollar
Precious metals ended higher on Tuesday, 12 May, 2009 at Comex. Prices rose today due to the relatively flat dollar and rising crude prices.
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 $10.4 (1.1%) to close at $923.9 an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 3%. Year to date, gold prices are higher by 4.5%.
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 30.5 cents (2.2%) at $14.215 an ounce. Year to date, silver has climbed 19.6% this year. For 2008, silver had lost 24%.
In the currency market on Tuesday, the greenback was relatively weak and the dollar index, which weighs the strength of dollar against the basket of six other currencies was down 0.8% at $82.612.
Crude prices rose substantially on Tuesday. Prices surpassed the $60 markl for some time and ultimately settled around $58.85/barrel.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.
Prior to 2008, gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for June delivery closed higher by Rs 127 (0.87%) at Rs 14,697 per 10 grams. Prices rose to a high of Rs 14,720 per 10 grams and fell to a low of Rs 14,552 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 425 (1.95%) higher at Rs 23,049/Kg. Prices opened at Rs 22,668/kg and rose to a high of Rs 23,138/Kg during the day's trading.
Crude glides up
Prices cross $60 mark during intra day trading
Crude oil ended higher on Tuesday, 12 May, 2009. Prices rose today due to the weak dollar and also on reports that crude imports to China during April registered substantial increase.
On Tuesday, crude-oil futures for light sweet crude for June delivery closed at $58.85/barrel (higher by $0.35 or 0.6%) on the New York Mercantile Exchange. Earlier, it fell to $57.81 and also rose to $60.08. Last week, crude ended higher by 10.2%.
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 24.2%. On a yearly basis, crude prices are lower by 39%.
In the currency market on Tuesday, the greenback was relatively weak and the dollar index, which weighs the strength of dollar against the basket of six other currencies was down 0.8% at $82.612.
China's customs department reported today that the country's imports increased by 13.6% last month to 16.17 million metric tons, or 3.9 million barrels a day. April's imports were still lower compared with the 16.34 million tons China bought from abroad in March, the highest in a year. The country imports about half of its oil consumption, which stood at 7.8 million barrels a day.
EIA said today in a monthly report that it now projected world oil demand to fall by 1.8 million barrels per day in 2009, a decline that is 400,000 barrels larger than the EIA had forecasted last month. The report also said that oil prices will remain flat for the remainder of the year, averaging about $55 a barrel.
Also at the Nymex on Tuesday, June-reformulated gasoline fell 1.23 cents, or 0.7%, to $1.6679 a gallon, and June heating oil added 0.61 cent, or 0.4%, to $1.5070 a gallon.
Natural gas for June delivery gained 18.8 cents, or 4.4% to $4.490 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 2,907/barrel, higher by Rs 32 (1.1%) against previous day's close. Natural gas for May delivery closed at Rs 216.3/mmbtu, higher by Rs 3.4/mmbtu (1.6%).
Daily News Roundup - May 13 2009
Combined debt of Reliance Industries and its subsidiary Reliance Petroleum will be brought down to around Rs570bn from Rs720bn at present. (BS)
Reliance Industries, IOC and Essar Oil are amongst the six companies that have expressed interest in taking on lease the LNG terminal at Dabhol. (FE)
Tata Steel will raise Rs30bn through non-convertible debentures to prepay the debt of its UK subsidiary, Tata Steel UK. (BS)
DLF has raised the shareholding it had put up for sale from 100mn shares or 6% to 168mn shares or nearly 10% to raise Rs38.5bn from QIBs, including FIIs. (BS)
DoT has appointed independent auditors to look into the accounts of Bharti Airtel, Idea Cellular, Vodafone Essar and Tata Teleservices to check whether they had paid lower licence fees to the Government. (BL)
Cairn India has said that crude oil production from Rajasthan field may be delayed if its partner, ONGC, which has a 30% stake in it, withdraws from the project. (BL)
Bajaj Auto has announced the launch of new 2009 Pulsar 150 DTS-I and 180 DTS-i bikes in Andhra Pradesh. (BL)
Japan’s Kawasaki Heavy Industries will introduce a high-powered motorcycle in the Indian market with the help of its Indian partner, Bajaj Auto. (BS)
IOC, HPCL and BPCL are likely to get Rs103bn worth of bonds this week. (FE)
Maruti to set up R&D unit to develop its own cars from scratch, in India. (ET)
The Supreme Court issued notice to Reliance Communications on a petition by MTNL alleging that the private mobile services provider had tampered with the process of deciphering the point of origin of a call. (BS)
Power Grid has tied-up with Netherlands based KEMA to lay the transmission system in Middle East. (FE)
Pantaloon Retail got its shareholders’ nod to raise Rs3.7bn from sale of equity and linked warrants to promoters and select investors. (BS)
Nalco has resumed full-fledged operations at its Panchpatmali mines. (BS)
TDSAT has rejected petitions by BSNL challenging abolition of the access deficit charge by the telecom regulator. (BL)
Indiabulls Real Estate plans to build residential projects over 9.8mn sq ft in the current fiscal year. (BS)
KEC International has bagged an order worth Rs1.1bn for power transmission related work. (FE)
TIL Ltd has pruned its investment plan in the proposed greenfield project in West Bengal. (BL)
AB Nuvo has decided to create a holding company for its financial services business. (ET)
India’s industrial output dipped by 2.3% in March this year as the country’s industries were adversely impacted by a sharp fall in exports and cut in spending by local consumers. (BS)
India’s exports for the month of April dipped by 33% to US$10.7bn, while imports declined by 35% to US$16.07bn. (BS)
FDI inflows fall over 55% in March to US$2bn from US$4.44bn in the same month last year. (FE)
The Indian cement industry despatched 16.65mn tons during the month, registering a growth of 13.03%, the highest since February, 2008. (BS)
Tea exports fall 24% in Q1 CY09. (FE)
According to agriculture ministry sugarcane output has dipped 17% to 289.2mn tons in 2008-09. (FE)
Wolf in bull clothing?
He that makes himself a sheep shall be eaten by a wolf.
Don't worry if you missed the run yesterday. The sudden and sharp advance remains quite inexplicable given the bleak IIP report and uncertainty over the outcome of elections. The upsurge was led by strong inflows from overseas investors and buying by select local funds.
Today is the fifth and final round of the Lok Sabha polls. The results will be out on Saturday, but exit polls from various media outfits will start rolling in from this evening. Expect a cacophony of conflicting signals depending on what you choose to read or hear. It pays to wait till the results are announced.
At the moment, there is no clarity on who will win the race to parliament. A fractured verdict is what everyone has discounted. A triumph for the NDA was the buzz yesterday and that would cheer markets further. A win for UPA may also be welcome unless it is heavily propped up by the Left.
Today, we expect the market to open on a cautious note. Global cues are mixed. Don’t be surprised of Tuesday’s gains are wiped out before the weekend. After that the trend will be determined by the poll verdict. It is a big event risk and one should not load up too much on shares.
In any case, the two-month rally has been overdone and some correction is imminent even if the election result is favourable. The much-touted global economic turnaround may take longer than anticipated. There may be more pain going ahead which means the recent rebound may taper off after a while.
Having said that, the overall outlook has improved manifold over the past two months, with the so-called "greenshoots" driving the sentiment across the globe. What's more, a lot of money is sitting on the sidelines - both local and foreign - which will come in at every fall. In short, the upside as well as downside are capped, though the bias remains positive on the whole.
Lupin is to announce its results today and some new development. Among the other key results to be announced today include Balaji Telefilms, Hindustan Motors, JK Lakshmi Cement, Shriram Transport and Whirlpool India.
FIIs were net buyers in the cash segment on Tuesday at Rs4.52bn while the local institutions poured in Rs1.78bn. In the F&O segment, the foreign funds were net buyers at Rs12.33bn. On Monday, FIIs were net buyers at Rs1.82bn in the cash segment. Mutual Funds were net sellers at Rs3.4bn on the same day.
On Wall Street, blue chip US shares managed to register moderate gains while the technology space saw some profit booking. The Dow Jones Industrial Average gained 50 points, or 0.6%. The S&P 500 index ended barely changed. The Nasdaq Composite index lost 15 points, or 0.9%.
US stocks slumped through the early afternoon, but managed to cut some losses in the last hour. All the three major indices have risen more than 30% since hitting multi-year lows on March 9.
The Treasury budget for April revealed a $20.9 billion deficit. It was the first during the month in 26 years, reflecting the impact of the recession and economic stimulus efforts. Economists had expected a deficit of $20 billion. Treasury had reported a budget deficit of $191 billion in March.
The housing market contracted at a record pace in the first three months of the year, according to a National Association of Realtors report released on Tuesday. The national median price of single family homes sold during the first three months of the year fell 13.8% versus a year ago to $169,000.
The March trade deficit widened after narrowing in February, according to a government report released Tuesday morning. The deficit widened to $27.6 billion from a revised $26.1 billion. Economists expected a reading of $29 billion, on average.
Bank of America reportedly made $7.3 billion from the sale of 13.5 million shares of China Construction Bank to a group of buyers, according to published reports. A number of other US banks sold stock or said they plan to sell stock to raise money.
In other news, Citigroup said that it has approved $8.2 billion in lending to consumers this year, thanks to the government funding it received through the bank bailout plan.
The bank sector was lower, but managed to trim losses late in the session. The KBW Bank sector index, which includes two dozen of the largest banks, fell 4.2%.
Automakers were weaker, with General Motors (GM) down on growing speculation that the company is likely to file for bankruptcy protection. The shares fell intraday to $1.09, the lowest level since 1933, one day after a group of the company's executives said they had sold stock and direct holdings in the automakers. Shares ended at $1.15, down 20%.
Ford Motor fell after saying late on Monday that it will sell 300 million shares of stock to raise roughly $1.8 billion in capital.
Treasury prices were little changed, with the yield on the benchmark 10-year note at 3.17% unchanged from Monday.
In currency trading, the dollar fell versus the euro and the yen.
US light crude oil for June delivery rose 35 cents to settle at $58.85 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery rose $10.40 to settle at $923.90 an ounce.
After the close, Applied Materials reported a steer-than-expected quarterly loss versus a profit a year ago. The chipmaker also reported a plunge in revenue, but results were better than expected. Shares slumped 2% in after-hours trading.
Also after the close, Freddie Mac reported a $9.9 billion quarterly loss and asked the government for another $6.1 billion in help.
On Wednesday, April retail sales are due before the open from the Commerce Department. April sales are expected to hold steady after falling 1.2% in March. Sales excluding volatile autos are expected to have rise 0.2% after falling 1% in March.
Reports are also due on April import and export prices, March business inventories and weekly crude inventories.
The BSE Sensex breached the 12,000 levels and registered an impressive comeback after two days of selling, shrugging off weak IIP numbers, negative Asian markets and uncertainty over elections.
After a flat opening, the key indices turned choppy and rangebound in the run up to the IIP report, which was announced at noon. The sudden turnaround in the sentiment came despite industrial output falling by a higher than expected 2.3% in March after a revised fall of 0.7% in February.
The bulls never lost the momentum throughout the afternoon, with buying actually accelerating in the last one hour of trade.
Finally, the Sensex surged by 475 points or 4.07% to close at 12,158 after touching a high of 12,194 and a low of 11,625. The index had opened at 11,629 against the previous close of 11,682.
The NSE Nifty added about 127 points or 3.6% to shut shop at 3,681. On the other hand, the Small-Cap and Mid-Cap shares posted only marginal gains with the corresponding BSE indices rising by 1.3% and 0.9%, respectively.
The buying spree was seen across the board, with IT, Banking, Oil & Gas, Real Estate, Power, Capital Goods and Metals rising by 2-5%. Consumer Durables, Auto, Pharma and FMCG indices gained between 1-2%.
Within the Sensex, the prominent gainers were HDFC, Wipro, ICICI Bank, Bharti Airtel, Infosys, Reliance, Hindalco, BHEL, Jaiprakash Associates, M&M, RCOM, HDFC Bank, Tata Motors, Reliance Infra, TCS, DLF and Maruti.
Hindustan Unilver was the only stock in the Sensex that ended in the red today.
Outside the frontline indices, the top gainers included Jindal Saw, Kotak Bank, UB, Axis Bank, HDIL, Suzlon, JP Hydro, REC, Allahabad Bank, Welspun Gujarat, Dr. Reddy's, Unitech, Bombay Dyeing, PNB, Idea, FT,
Among the big losers in the broader market were, Essar Oil, United Phosphorus, Tata Chemicals, GMDC, IVRCL Infra, EIH, Bajaj Holdings, BF Utilities, Madras Cement, Dabur India, CONCOR and Aditya Birla Nuvo.
Tea stocks extended their recent good run amid a bullish outlook for prices as output continues to be below par. Jayshree Tea, Harrisons Malayalam and McLeod Russell rallied after tea prices surged by 35% last month over the previous month in Kolkata.
The advance-decline ratio on the BSE was pretty favourable with 1,410 shares rising and 1,101 stocks declining. The turnover on the BSE was Rs49.43bn as against Monday's Rs43.8bn while traded volume stood at 423.1mn shares versus 415.1mn.
Turnover on the NSE was Rs155.54bn compared to Monday's Rs136.34bn while traded volume stood at 970.5mn shares versus 900.6mn shares.
According to SEBI, the FIIs were net buyers in the cash segment on Monday at Rs1.82bn, taking their total net investment into Indian shares this month to Rs46.9bn or US$943.6mn. For the year, they are net buyers of about US$1bn after pulling out a record US$13bn last year.
Suzlon Energy
We recommend a buy on Suzlon Energy from a short-term trading perspective. It is apparent from the charts of Suzlon Energy that after recording a lifetime low of Rs 33 on March 12, the stock changed its trend. Since this low, the stock has been on a medium-term uptrend, forming higher peaks and higher troughs. On May 5, the stock conclusively broke through a significant resistance level at Rs 70 by gaining almost 10 per cent. Moreover, in last trading session the stock reinforced its bullish momentum by jumping 8 per cent accompanied with above average volume. The stock is trading well above its 21- and 50-day moving averages. The daily relative strength index (RSI) is featuring in the bullish zone and the weekly RSI is steadily rising in the neutral region towards the bullish zone. We are bullish on the stock from a short-term horizon. We anticipate its current rally to prolong until it hits our price target of Rs 90 in the near future. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 76.
via BL
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