India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Thursday, May 21, 2009
Rupee rises
Ends at 47.37/38 per dollar
Rupee rose back towards its 2009 high on Thursday, bolstered by broad weakness in the dollar and expectations of a jump in foreign investment after the ruling coalition won national elections.
Rupee ended at 47.37/38 per dollar, off an early peak of 47.28, but still above Wednesday's close of 47.47/48.
Fed fire up fear in Asian Markets
Sensex, Seoul surrendered more than 2% while Shanghai, Hang Seng gave up 1.6%
Stock market in Asian region closed mostly lower on Thursday, 21 May 2009, as concerns over the pace of economic recovery hurting sentiment and the yen making significant advance against the U.S. dollar.
On Wall Street, the major indices settled in negative territory after a mostly positive day as investors digested a harsher forecast for GDP and unemployment from the Federal Reserve. The Dow Jones Industrial Average lost 52.81 points, or 0.6%, to 8422.04, while the S&P 500 moved 4.66 points, or 0.5%, lower to 903.47. The Nasdaq was off by 6.70 points, or 0.4%, at 1727.84.
The Federal Reserve released the minutes from the latest Federal Open Market Committee meeting, saying the pace of decline in "some components of final demand" appeared to have slowed recently. Consumer spending firmed, and housing activity -- although still depressed --"leveled off" in February and March. But businesses cut production and labor markets deteriorated further in recent months, according to the committee.
The FOMC is now projecting real GDP to shrink by 1.3% to 2% in 2009, vs. prior expectations for a decrease between 0.5% and 1.3%. The committee's projections for the unemployment rate during the fourth quarter were between 9.2% to 9.6%, "noticeably higher" than the latest reading available on unemployment at the time, a rate of 8.5%.
In the commodity market, crude oil fell from a six-month high after the Federal Reserve said that recovery might fail to take root in the U.S., the world’s largest energy consumer. Crude oil declined after minutes of the Federal Open Market Committee meeting on April 28-29 showed that some members want the central bank to boost its purchases of assets to revive growth. Total U.S. daily fuel demand in the four weeks ended May 15 fell 7.6% from a year earlier, an Energy Department report showed yesterday
Crude oil for July delivery dropped as much as 87 cents, or 1.4%, to $61.17 a barrel, and was at $61.21 on the New York Mercantile Exchange at 9:46 a.m. in London. Yesterday, oil rose $1.94, or 3.2%, to settle at $62.04 a barrel, the highest closing price since Nov. 10.
Brent crude for July settlement fell as much as 84 cents, or 1.4%, to $59.75 a barrel on London’s ICE Futures Europe exchange.
Gold rose to the highest in almost two months as a drop in the dollar boosted investors’ interest in the metal as an alternative asset, and a producers’ group said investment demand gained in the first quarter.
Immediate-delivery gold gained for a third day, rising 0.4% to $942.24 an ounce at 11:29 a.m. in Singapore. Earlier, the metal touched $943.10, the highest since March 26, taking gains from year’s low of $802.59 to about 17.5%.
In the currency market, US dollar was sharply off yesterday after FOMC minutes revealed that the committee members had discussed on increasing the size of assets purchase.
The Japanese yen climbed to a 2-month high against the US dollar on Thursday after the U.S. Federal Reserve projected a deeper recession, boosting demand for the Japanese currency as a refuge from the global slump. The Japanese currency quoted at 94.69 per greenback.
The Hong Kong dollar was trading at HK$ 7.7515 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
In Sydney trades, the Australian dollar were eased from nine month highs against the major currencies as gathering optimism the world economy is on the mend improved investors’ appetites for riskier currencies. The Aussie was quoted at 77.37 cents against the greenback on Thursday.
In Wellington trades, the New Zealand dollar ended the day at US60.85c after rallying to trade as high as US61.05c during the session. The New Zealand dollar climbed back to its highest level against the greenback in more than a week today.
The South Koran won ended at 1,248.6 won against the dollar, up 2.4 won from Wednesday's close, as offshore investors dumped the greenback.
The Taiwan dollar continued to rally further. The Taiwan dollar strengthened against the US dollar as it closed higher at NT$ 32.7380, up by NT$ 0.1170 from Wednesday’s close of NT$33.855.
Coming back in equities, most of the Asian equity markets ended lower on the U.S. Federal Reserve's grim view of the economy, with shares in Japan also hurt by concerns a stronger yen would hurt exporters' competitiveness. However, selling pressure was moderate and we can remain hopeful after a recent data from several parts of the world point toward an economic recovery.
In Japan, the stock index finished the session lower, dragged down by a weak lead from Wall Street and slumps in the shares of financials and property developers as optimism over the global economic recovery waned after the US Federal Reserve reduced its economic outlook for 2009, while a stronger yen weighed on exporters. The Nikkei 225 Stock Average index tumbled 80.49 points, or 0.9%, to 9,264.15, while the broader Topix index retracted 4.86 points, or 0.6% to 881.
In Mainland China, stock market finished the session lower on Thursday following weak led from Wall Street overnight and a sell-off in financial, properties, and energy stocks as optimism over the global economic recovery waned after the US Federal Reserve reduced its economic outlook for 2009 and after Credit Suisse Group AG report said a rebound in economic growth are below market expectation
The Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, retreated 1.5%, or 40.79 points, to close at 2,610.62.
In Hong Kong the stock finished the session lower, extending loosing streak for second consecutive day, dragged down by financials and properties following weak led from Wall Street overnight, Beijing liquidity concern, and raise in Hong Kong’s unemployment rate. The Hang Seng Index retracted 276.35 points, or 1.59%, to 17,199.49, while the Hang Seng China Enterprise Index, which tracks H shares of Chinese companies, melted 115.33 points, or 1.15% to 9,927.28.
In Australia, the stock market pared back early losses to finish the session down, dragged down by a weak lead from Wall Street and slumps in the shares of financials, retailers, and property trusts as optimism over the global economic recovery waned after the US Federal Reserve reduced its economic outlook for 2009. At the closing bell, the benchmark S&P/ASX200 index slipped 10.70 points, or 0.28%, to 3,813.90, while the broader All Ordinaries trimmed 4.20 points, or 0.11%, to 3,804.70.
On the economic front, Westpac Bank and the Melbourne Institute survey data showed that the consumer inflationary expectations found the median rate of inflation was 2.3% in May, down from 2.4% in April as the economy kept sliding.
The Australian Bureau of Statistics reported Thursday that vehicle sales increased a seasonally adjusted 0.9% on month. In trend terms, which further smooth the seasonally adjusted data, sales were down 1.4% on month. For the full year to April, total vehicle sales were down a seasonally adjusted 20.3%, and were lower by 20.6 percent in trend terms.
In New Zealand, the stock market dipped down in line with most of the Asian markets trailing pessimism in the United States overnight. The NZX50 fell 0.88% or 24.77 points to 2776.311. NZX 15 declined 0.94% or 48.15 points to close at 5067.837.
In South Korea, stock markets closed lower as bleak outlooks for a quick economic recovery set off selling in shipping, tech and other large-cap issues. The benchmark Korea Composite Stock Price Index (KOSPI) fell 14.05 points to 1,421.65.
In Singapore, the stocks index finished the session lower, dragged down by a weak lead from Wall Street and broad based slumps in the shares of financials, properties, and manufacturers as optimism over the global economic recovery waned after the US Federal Reserve reduced its economic outlook for 2009 and rekindled worries over the strength of China’s economic growth. The blue chip Straits Times Index tumbled 58.27 points, or 2.57%, to 2,210.97.
On the economic front, the Ministry of Trade and Industry said on Thursday in its revised report that the Singapore economy shrank a seasonally adjusted 14.6% in the first three months of 2009, after shrinking 16.4% between October and December and a second stimulus package may not be needed as the nation emerges from the deepest recession in its 44-year history.
Singapore's Ministry of Trade and Industry also said that the Singapore's consumer price index (CPI) slowed to 2.1 percent in the first quarter of 2009, down from 5.4 percent in the fourth quarter of 2008 due to a downward correction of global commodity prices from the peaks in 2008.
In Taiwan, stock market ended marginally higher, stretching its upward run in the fifth session, as market attained a new nine-month high. However, today’s gains were capped after Taiwan confirmed its first new flu H1N1 case in Taiwan also forced many major enterprises on the island to kick off anti-pandemic mechanism deterring investor’s confidence. Investor’s cautious approach ahead of first quarter GDP data also limited the gains. The main Taiex share index gained further as Taiex added 15.19 points or 0.23%, closing the day at 6718.81, highest closing since 1 September 2008 when market closed the day at 6813.09.
On the economic front, the Taiwan legislature recently passed the resolution for Taiwan to become a member of the Government Procurement Agreement (GPA), which is approved by the World Trade Organization (WTO), making Taiwan the 41st signatory member.
Joining the GPA enables Taiwan’s enterprises to bid for government projects overseas and vice versa. Huang Chih-peng, director general of Bureau of Foreign Trade (BOFT) under the Ministry of Economic Affairs (MOEA), noted that the BOFT informed WTO of Taiwan’s entry in the GPA right after legislative approval, with the membership to be effective starting June at the earliest. The annual market value created by GPA members is estimated at US$960.3 billion.
The GPA is one of the multilateral agreements under the WTO framework. The WTO stipulates that GPA members should open up government procurement markets with negotiation based on principles of openness, transparency and non-discrimination. Currently the GPA members include the United States, the European Union, Canada, Japan, South Korea and Singapore, many of which have close trade relations with Taiwan.
In India, the key benchmark indices extended losses in late trade as capital goods and banking stocks fell. The barometer index BSE Sensex fell below the psychological 14,000 mark. Weak global markets triggered profit taking after strong gains on the domestic bourses in the past 2-1/2 months. The BSE 30-share Sensex closed down 324.12 points or 2.31%, to 13.736.54. The S&P CNX Nifty was down 59.40 points or 1.39% to 4,210.95.
Elsewhere, Malaysia's Kula Lumpur Composite index was down 0.68% or 7.07 points to 1035.56 while Indonesia’s Jakarta composite index fell 0.02% or 0.29 points ending the day at 1885.72.
In other regional market, European shares snapped a five-session advance on Thursday, as comments from the U.S. Federal Reserve provided a reason for investors to reassess recent optimism over the economy. Regional European markets were also lower, with the U.K. FTSE 100 index down by 0.32% at 4,367, the German DAX 30 index falling 1.71% to 4,954, and the French CAC-40 index, losing 1.62% to 3,250.
Looking ahead for the day, in US, initial jobless claims may reduce further for the week ended 16 May 2009. Leading indicators may show up their first increase in almost a year and the sharpest gain in 4 years, in April as led improvement in consumer confidence and stabilization in jobless claims. The Philly Fed Survey is also expected to show some improvement in May from a month ago. Canada's wholesale sales is set to contract in month on month in March.
RIL May 2009 futures at premium
Turnover rises
Nifty May 2009 futures were at 4219.50, at a premium of 8.60 points over the spot closing of 4210.90. Turnover in NSE's futures & options (F&O) segment inched up to Rs 71702.09 crore from Rs 70570.87 crore on Wednesday, 20 May 2009.
Reliance Industries (RIL) May 2009 futures were at a premium at Rs 2126.85 compared to the spot closing of Rs 2115.45.
Tata Steel May 2009 futures were at a discount at Rs 364.85 compared to the spot closing of Rs 365.65.
Reliance Communication May 2009 futures were at discount at Rs 319.50 compared to the spot closing of Rs 324.10.
In the cash market, the S&P CNX Nifty lost 59.40 points or 1.39% at 4210.90.
Post Session Commentary - May 21 2009
Indian market slumped sharply lower to close near day’s low on heavy profit booking after a recent rally. Investors were cautious, though witnessed some recovery during early afternoon trade on few bouts of buying. However, the upturn was short-lived and domestic bourses once again slipped into red. Benchmark indices extended losses tracking fragile global cues. Rise in inflation to 0.61% in the 12 months to May 9, 2009 as against previous week''s annual rise of 0.48%, also weighed on sentiments.
The domestic market opened lower backed by the unfavorable cues from the markets all over the world. The Asian markets were lower and the US stock markets on Wednesday closed with losses on the back of grim economic outlook from the US Federal Reserve. Further, lack of positive news restricted benchmark indices to gather momentum. Meanwhile, during afternoon trade stocks slashed losses and gained some ground on some bouts of buying. However, market was unable to carry same impetus and slipped again into red. Market lost more ground during final trading to end the day with losses after huge selling pressure emerged across the board. BSE Sensex ended below 13,800 level and NSE Nifty closed below 4,250 level. From the sectoral front, investors off-loaded position across the sectors. Most of the selling was seen in Capital Goods, Bank, Auto, IT, FMCG and Metal stocks. However, PSU, Oil & Gas and Consumer Durable stocks remained in limelight as witnessed most of the buying from these baskets.
Among the Sensex pack 24 stocks ended in red territory and 6 in green. The market breadth indicating the overall health of the market remained positive as 2097 stocks closed in green while 627 stocks closed in red and 43 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 324.12 points at 13,736.54 and NSE Nifty ended down by 59.40 points at 4,210.90. BSE Mid Caps and Small Caps closed with gains of 0.10 and 134.35 points at 4,673.87 and 5,342.53 respectively. The BSE Sensex touched intraday high of 14,089.51 and intraday low of 13,704.43.
Losers from the BSE Sensex pack are L&T Ltd (8.59%), Maruti Suzuki (6.93%), ICICI Bank (5.15%), HDFC (5.01%), Hindalco (5%), Wipro Ltd (4.86%), TCS Ltd (4.25%), M&M Ltd (3.75%), BHEL (3.73%) and SBI (3.70%).
Gainers from the BSE Sensex pack are ONGC Ltd (8.41%), RCom (4.52%), Ranbaxy Lab (2.66%), NTPC Ltd (1.87%) and Reliance Infra (1.36%).
India''s inflation hovers near the three decade low as its wholesale price index shot up 0.61% in the 12 months to May 9, 2009 as against previous week''s annual rise of 0.48%, government data showed on Thursday. The annual inflation rate was 8.57% during the corresponding week of the previous year.
On the global markets front the Asian markets which opened before the Indian market, ended in red after the U.S. central bank predicted yet deeper recession in America''s economy. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times and Seoul Composite index ended higher by 40.79, 276.35, 80.49, 58.27 and 14.05 points at 2,610.62, 17,199.49, 9,264.15, 2,210.97 and 1,421.65 respectively. However Seoul Composite lost 4.47 points at 1,393.45.
European markets which opened after the Indian market are trading lower. In Frankfurt the DAX index is trading down by 69.23 points at 4,969.71 and in London FTSE 100 is trading lower by 89.66 points at 4,378.75.
The BSE Capital Goods index plunged (5.41%) or 616.94 points to close at 10,794.96. Main losers are Jyoti Struct (8.27%), ABB Ltd (6.71%), Bharat Bijli (6.13%), Areva (5.11%) and Praj Indus (4.84%).
The BSE Bank stocks dropped by (2.91%) or 230.30 points to close at 7,689.23 on fears of rising defaults in a slowing economy. Major losers are Indian Overseas Bank (7.58%), Yes Bank (6.97%), Oriental Bank (6.80%), Kotak Bank (6.64%) and ICICI Bank (5.15%).
The BSE Auto ended down by (2.07%) or 93.49 points at 4,423.14. Losers are Maruti Suzuki (6.93%), Ashok Leyland (3.82%), Herohonda Motors (2.43%), Bharat Forge (1.81%) and Tata Motors (1.77%).
The BSE IT index ended lower by (1.88%) or 53.64 points to close at 2,800.32. Wipro Ltd (4.86%), TCS Ltd (4.25%), Patni Computer (3.05%), Moser Bayer (2.40%) and Oracle Fin (2.16%) ended in negative territory.
The BSE FMCG index closed with decrease of (1.86%) or 39.34 points at 2,072.76. Scrips that lost are United Brew (5.92%), United Spr (4.06%), ITC Ltd (2.54%), Marico Ltd (2.27%) and Dabur India (1.67%).
The BSE PSU index gained (2.75%) or 204.45 points to close at 7,631.35. Gainers are MMTC Ltd (15.08%), HPCL (14.64%), IOC (14.52%), Chennai Petr (13.01%) and BPCL (10.22%).
Aurobindo Pharma surged 5.61%. The company announced that it has further expanded its partnership with Pfizer Inc., a global leader in Pharmaceuticals by executing licensing and supply agreements for several Solid Dosage and Sterile products for a number of emerging market countries.
Tata Motor dropped by 10.77%. The company raised Rs. 4200 crores ($ 840 million) through issue of Secured Non-Convertible Rupee Debentures. The issue opened for bids today at 10 am and dosed at 5 pm. The funds raised will be used for part repayment of the $3 billion bridge facility taken for acquiring Jaguar Land Rover. Tata Motors had earlier prepaid $1.11 billion.
Patel Engineering Ltd lost 1.74%. The company has bagged new orders aggregating to Rs 708.04 crore. The company has bagged an Rs 554.67 crore order from Vidarbha Irrigation Development Corporation (VIDC) and Rs 153.37 crore hydropower order from the Hknachal Pradesh Power Corporation.
Reliance Power ended lower by 3.70%. The company has bagged four hydroelectric power projects of 2,520- Mw capacity worth over Rs 18,000 crore from the Arunachal Pradesh government.
HCL Technologies plunged 1.98%. The company has received an outsourcing services contract from MTV Networks (MTVN) in the US, for online media platform development. The contract covers various brands of MTV Networks, including MTV, VH1, Comedy Central and Nickelodeon.
Reliance Industries lost 1.59%. The company has received the government approval to sign agreements with firms supplying gas to households and car owners in major cities. RIL bagged the government''s nod for the allocation of gas from RIL''s Krishna-Godavari basin to gas distribution firms (CGD) in Delhi as well as Mumbai, Ahmedabad, Gandhinagar, Agra, Indore and Ujjain.
BSE Bulk Deals to Watch - May 21 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
21/5/2009 532331 AJANTA PHARM PRAGNESHROHITKUMARPANDYA B 65473 79.54
21/5/2009 532919 ALLIED COMP ALPESHJAYANTILALPANDIT B 972480 0.58
21/5/2009 532995 AVON CORP DHEERAJ KUMAR B 84204 7.82
21/5/2009 531733 BAFNA SPINNI VINODPUKHRAJJAIN S 246128 1.78
21/5/2009 531719 BHAGIR CHE I VVSS ESTATES PRIVATE LIMITED B 30500 46.73
21/5/2009 531719 BHAGIR CHE I SSVV AGRO FARMS PRIVATE LIMITED B 50000 46.36
21/5/2009 531719 BHAGIR CHE I VIJAYALAKSHMI INS AND PEST LTD S 100500 46.45
21/5/2009 512253 BIO GREEN I SHIVRAMJAGANNATHANGNE S 50230 10.54
21/5/2009 533059 BRAND HOUSE JMP SECURITIES PVT LTD B 297137 20.45
21/5/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD B 234425 5.01
21/5/2009 531682 CAT TECHNOL BP FINTRADE PRIVATE LIMITED B 342007 5.01
21/5/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD S 522000 5.01
21/5/2009 532413 CEREBRA INT D. B. SECURITIES. PVT. LTD. B 74700 9.63
21/5/2009 532413 CEREBRA INT VILPABENPRANAVBHAIVORA B 69000 9.63
21/5/2009 532413 CEREBRA INT VJPATELINVESTMENT B 72700 9.63
21/5/2009 532413 CEREBRA INT NARENDRAAMRATLALAMIN B 71870 9.63
21/5/2009 532413 CEREBRA INT ALPESHJAYANTILALPANDIT B 89100 9.63
21/5/2009 532413 CEREBRA INT KOSHTI SECURITIES B 70000 9.63
21/5/2009 532413 CEREBRA INT CHEMBRA ECONOMIC CONSULTANCY SERVICES LIMITED S 280000 9.63
21/5/2009 532413 CEREBRA INT UDBHAV HOLDINGS PVT LTD S 100000 9.63
21/5/2009 532413 CEREBRA INT SRINIVASARVARADARAJAN S 67110 9.63
21/5/2009 532413 CEREBRA INT AARRKAYS ENERGY SYSTEMS PVT LTD. S 67069 9.63
21/5/2009 502820 DCM LIMITED SETU SECURITIES PVT LTD B 88152 27.49
21/5/2009 502820 DCM LIMITED SETU SECURITIES PVT LTD S 87752 26.65
21/5/2009 523890 DS KULKARNI SVS SECURITIES PVT LTD S 132290 51.22
21/5/2009 532876 EVERONN SYS OPG SECURITIES P LTD B 233338 287.32
21/5/2009 532876 EVERONN SYS CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED B 100000 281.56
21/5/2009 532876 EVERONN SYS OPG SECURITIES P LTD S 233338 287.89
21/5/2009 523277 G V FILMS LT JMP SECURITIES PVT LTD B 2023545 1.65
21/5/2009 523277 G V FILMS LT JMP SECURITIES PVT LTD S 1897281 1.63
21/5/2009 532622 GATEWAY DIST DSP MERRILL LYNCH TRUSTEE CO PVT LTD A/C B 835257 89.08
21/5/2009 530655 GOOD LUCK ST UNITED INDIA INSURANCE CO. LTD. B 25000 164.85
21/5/2009 509148 GOVIND RUBBE MUKESHMAKHIJA S 106360 6.33
21/5/2009 509627 HINDUS DOR O MAVI INVESTMENT FUND LTD. B 600000 69.42
21/5/2009 509627 HINDUS DOR O MAPLENET TECHNOLOGIES PRIVATE LIMITED S 600000 69.43
21/5/2009 532662 HT MEDIA KMUK A/C SANDSTONE CAPITAL INDIA MASTER FUND LTD. B 3094100 86.00
21/5/2009 532662 HT MEDIA CITICORP INTL FINANCE CORPORATION S 3193283 86.26
21/5/2009 522059 INDAGE VIN RAJESH TREXIM PVT. LTD. B 121750 73.86
21/5/2009 522059 INDAGE VIN NEW VERNON ASSET MANAGEMENT LIMITED A/C NEW VERNON INDIA LIMITED S 162689 74.15
21/5/2009 532894 IWIND ENERGY ABN AMRO BANK NV S 750000 23.65
21/5/2009 530049 JJ EXPORTER AMIT BUSINESS PVT LTD B 85000 18.85
21/5/2009 530049 JJ EXPORTER IVORY CONSULTANTS PVT LTD S 85000 18.81
21/5/2009 524826 JUPITER BIOS SONALJATINKHANDWAL B 78000 58.25
21/5/2009 524826 JUPITER BIOS NIRJAY SECURITIES PVT LTD B 78000 58.25
21/5/2009 524826 JUPITER BIOS SONALJATINKHANDWAL S 78000 69.23
21/5/2009 524826 JUPITER BIOS NIRJAY SECURITIES PVT LTD S 78000 63.40
21/5/2009 524826 JUPITER BIOS ABN AMRO BANK NV S 300000 58.15
21/5/2009 532081 K SERA SERA S V ENTERPRISES B 1915169 10.75
21/5/2009 532081 K SERA SERA S V ENTERPRISES S 1915169 10.85
21/5/2009 511131 KAMAN HSG MAVI INVESTMENT FUND LTD. B 530000 35.03
21/5/2009 511131 KAMAN HSG VANSHVALUE REALTY PRIVATE LIMITED S 180000 35.16
21/5/2009 511131 KAMAN HSG MAPLENET TECHNOLOGIES PRIVATE LIMITED S 170000 34.84
21/5/2009 511131 KAMAN HSG DIMENSIONAL PROPERTIES PRIVATE LIMITED S 170000 35.09
21/5/2009 532652 KARNATAKA BK RCTCL A/C RELIANCE LONG TERM EQUITY FUND B 2620500 120.00
21/5/2009 532652 KARNATAKA BK RCTCL A/C RELIANCE REGULAR SAVING FUND EQUITY OPTION B 1391500 120.00
21/5/2009 532652 KARNATAKA BK COPTHALL MAURITIUS INVESTMENTS LTD. S 1595837 120.00
21/5/2009 532652 KARNATAKA BK CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD S 2620387 120.00
21/5/2009 532283 KASHYAP TEC NARENDRAAMRATLALAMIN S 2273780 0.65
21/5/2009 590011 MOVING PICTU-PMS AMITOJSINGH B 48000 5.40
21/5/2009 500304 NIIT LTD SUNDARAM MF AC SELF FD DIVID B 1190000 42.26
21/5/2009 500304 NIIT LTD SHYAMBIYANI B 860709 40.18
21/5/2009 500304 NIIT LTD SHYAMBIYANI S 906894 40.45
21/5/2009 504058 NIPPO BATT DAIWA SECURITIES SMBC CO LIMITED S 27209 314.77
21/5/2009 532837 ORBITCO JMP SECURITIES PVT LTD B 205032 155.54
21/5/2009 532837 ORBITCO JMP SECURITIES PVT LTD S 209032 152.76
21/5/2009 526109 PRICOL LTD FRANKLIN TEMPLETON MUTUAL FUND S 642414 11.65
21/5/2009 532675 PRITHVI INFO PATNI COMMODITIES AND DERIVATIVES P.LTD S 100000 58.14
21/5/2009 532524 PTC INDIA BAJAJ ALLIANCE LIFE INSURANCE S 1483458 82.65
21/5/2009 507300 RAVALG SUG F TIRATHPRADYUMANPARIKH B 389 6172.46
21/5/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC GENUINE STOCK BROKERS PVT. LTD. B 88945 950.30
21/5/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD B 231388 942.10
21/5/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC GENUINE STOCK BROKERS PVT. LTD. S 88945 951.01
21/5/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD S 231388 943.18
21/5/2009 500366 ROLTA IND MORGAN STANLEY MAURITIUS COMPANY LIMITED B 1590008 108.91
21/5/2009 526753 ROSELABS LTD ZAMEERPAWANKUMARAGRAWAL S 58000 10.06
21/5/2009 531898 SANGUINE MD DHIRAJLAL V SANGHVI HUF S 104224 2.44
21/5/2009 500285 SPICEJET LTD JMP SECURITIES PVT LTD S 1289848 19.99
21/5/2009 512048 SPLASH MEDIA RAKESH AKAR B 15000 41.73
21/5/2009 512048 SPLASH MEDIA BHANUMATIDHARAMRAJGIRI S 15500 41.73
21/5/2009 532765 USHER AGRO DKG SECURITIES PVT LTD S 114811 40.11
21/5/2009 531874 VENUS VENT KANCHAN VIJAYKUMAR THAKKAR B 30000 33.79
21/5/2009 523724 VIJ.SHANTI B BHARAT PRITHVIRAJ RANAWAT S 65548 21.30
21/5/2009 530477 VIKRAM THERM MAYAVIJAYSHAH B 13000 20.02
21/5/2009 531249 WELL PACK PA INTERNATIONAL TRANSMISSION PRODUCTS PVT LTD B 38000 142.75
21/5/2009 532795 WIRE& WIRLES TRANSGLOBAL SECURITIES LTD. B 1152351 21.39
21/5/2009 532795 WIRE& WIRLES TRANSGLOBAL SECURITIES LTD. S 1152351 21.45
NSE Bulk Deals to Watch - May 21 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
21-MAY-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,2506065,19.09,-
21-MAY-2009,DSKULKARNI,DS Kulkarni Dev. Ltd.,BP FINTRADE PRIVATE LIMITED,BUY,126223,51.70,-
21-MAY-2009,EDUCOMP,Educomp Solutions Limited,WARD FERRY MANAGEMENT LTD A/C WF INDIA RECONNAISSANCE FUND L,BUY,87000,2644.19,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,87821,283.54,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,C D INTEGRATED SERVICES LTD.,BUY,96843,285.05,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,INDEA ABSOLUTE RETURN FUND,BUY,100000,281.62,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,INDEA LONG TERM OPPERTUNITIES MASTER FUND,BUY,100000,281.62,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,PRB SECURITIES PRIVATE LTD.,BUY,79903,285.73,-
21-MAY-2009,EVINIX,Evinix Accessories Limite,HI-GROWTH CORPORATE SERVICES PVT. LTD.,BUY,542048,2.99,-
21-MAY-2009,GDL,Gateway Distriparks Limit,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,550333,88.90,-
21-MAY-2009,GOLDTECH,Goldstone Tech Ltd.,BHAVESH P PABARI,BUY,100000,26.75,-
21-MAY-2009,HDIL,Housing Development and I,SMC GLOBAL SECURITIES LTD.,BUY,1474750,304.10,-
21-MAY-2009,HTMEDIA,HT Media Limited,RELIANCE LIFE INSURANCE CO.LTD.,BUY,4000000,100.00,-
21-MAY-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,4457941,43.07,-
21-MAY-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,11309960,20.26,-
21-MAY-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,BUY,1257819,10.68,-
21-MAY-2009,NIITLTD,NIIT Limited,ASIATIC PORTFOLIO LIMITED,BUY,1150158,40.08,-
21-MAY-2009,NIITLTD,NIIT Limited,NIRSHILP SECURITIES PVT. LTD.,BUY,189502,41.20,-
21-MAY-2009,NIITLTD,NIIT Limited,SUNDARAM BNP PARIBAS,BUY,1218000,42.22,-
21-MAY-2009,NIITLTD,NIIT Limited,TRANSGLOBAL SECURITIES LTD.,BUY,834396,41.16,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,143766,952.58,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,BUY,181780,940.84,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,112936,949.85,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,86431,957.43,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,PRB SECURITIES PRIVATE LTD.,BUY,259771,949.96,-
21-MAY-2009,ROLTA,Rolta India Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1143284,109.91,-
21-MAY-2009,ROLTA,Rolta India Ltd.,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,3900661,109.00,-
21-MAY-2009,ROLTA,Rolta India Ltd.,OM INVESTMENTS,BUY,1698905,109.41,-
21-MAY-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1096082,33.99,-
21-MAY-2009,SUNDARMFIN,Sundaram Finance Ltd.,BRIGHT STAR INVESTMENTS PRIVATE LIMITED,BUY,400000,255.00,-
21-MAY-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,2570449,21.38,-
21-MAY-2009,WWIL,Wire and Wireless (India),TRANSGLOBAL SECURITIES LTD.,BUY,1182337,21.43,-
21-MAY-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,2506065,19.03,-
21-MAY-2009,ALPSINDUS,Alps Industries Ltd.,CORONATION BUILDERS & ENGG. PVT.LTD.,SELL,206756,9.35,-
21-MAY-2009,AUROPHARMA,Aurobindo Pharma Ltd.,RELIANCE CAPITAL ASSET MGT LTD,SELL,275806,343.11,-
21-MAY-2009,BRANDHOUSE,Brandhouse Retails Limite,DEUTSCHE BANK AG, LONDON,SELL,346396,18.53,-
21-MAY-2009,DSKULKARNI,DS Kulkarni Dev. Ltd.,BP FINTRADE PRIVATE LIMITED,SELL,140881,51.58,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,88621,283.53,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,C D INTEGRATED SERVICES LTD.,SELL,96843,285.80,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,PRB SECURITIES PRIVATE LTD.,SELL,79903,285.93,-
21-MAY-2009,EVINIX,Evinix Accessories Limite,HI-GROWTH CORPORATE SERVICES PVT. LTD.,SELL,578373,3.02,-
21-MAY-2009,GDL,Gateway Distriparks Limit,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,552333,89.98,-
21-MAY-2009,GOLDTECH,Goldstone Tech Ltd.,GOPAL MARATHE,SELL,105550,26.75,-
21-MAY-2009,HDIL,Housing Development and I,SMC GLOBAL SECURITIES LTD.,SELL,1508806,303.64,-
21-MAY-2009,HTMEDIA,HT Media Limited,CITICORP INTL FIN CORP,SELL,4100000,100.00,-
21-MAY-2009,IBREALEST,Indiabulls Real Estate Li,J P MORGAN SEC LTD A/C COPTHALL MAURITIUS INVEST LTD,SELL,1340000,210.34,-
21-MAY-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,4457941,43.01,-
21-MAY-2009,INDOWIND,Indowind Energy Limited,ABN AMRO BANK N.V. LONDON BRANCH,SELL,750000,23.77,-
21-MAY-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,11382800,20.23,-
21-MAY-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,SELL,1317846,10.83,-
21-MAY-2009,NIITLTD,NIIT Limited,ASIATIC PORTFOLIO LIMITED,SELL,1150158,40.28,-
21-MAY-2009,NIITLTD,NIIT Limited,NIRSHILP SECURITIES PVT. LTD.,SELL,990525,41.69,-
21-MAY-2009,NIITLTD,NIIT Limited,TRANSGLOBAL SECURITIES LTD.,SELL,843096,41.01,-
21-MAY-2009,PTC,PTC India Limited,BAJAJ ALLIANCE LIFE INSURANCE,SELL,2149775,82.20,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,143766,958.22,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,SELL,181780,941.78,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,112936,950.35,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,75231,961.29,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,PRB SECURITIES PRIVATE LTD.,SELL,241372,954.35,-
21-MAY-2009,ROLTA,Rolta India Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1145284,109.84,-
21-MAY-2009,ROLTA,Rolta India Ltd.,OM INVESTMENTS,SELL,1698905,109.49,-
21-MAY-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1210582,33.81,-
21-MAY-2009,SUNDARMFIN,Sundaram Finance Ltd.,DERIVE TRADING PVT LTD,SELL,400000,255.00,-
21-MAY-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,2575449,21.40,-
21-MAY-2009,WWIL,Wire and Wireless (India),TRANSGLOBAL SECURITIES LTD.,SELL,1182337,21.43,-
PSU OMCs defy weak market
The key benchmark indices extended losses for the second straight day as investors booked profit taking cues from weak global markets and after recent sharp surge in prices. Capital goods, auto and banking stocks led the fall. Index heavyweight Reliance Industries extended recent losses. The BSE 30-share Sensex lost 324.12 points or 2.31%, off close to 355 points from the day's high.
The barometer index BSE Sensex fell below the psychological 14,000 mark.
The market was volatile. The market cut losses after a weak start triggered by weak global cues. However, the recovery proved short-lived as the Sensex tumbled to a fresh intraday low in morning trade. It cut losses later. The Sensex moved into the green from red in early afternoon trade. It once again slipped into the red shortly. The market extended losses later.
The headline inflation held near a three- decade low, giving Prime Minister Dr Manmohan Singh's re-elected government room to take steps to support a slowing economy. Inflation based on the wholesale price index (WPI) rose 0.61% in the year through 9 May 2009, higher than previous week's annual rise of 0.48% data announced by the government just a while back showed.
A comfortable victory for the Congress-led coalition government in election has raised expectations of a strong push for economic reforms by the government. As per media reports key government departments have drawn up a slew of proposals to populate an ambitious reform agenda for the first 100 days of Dr Singh's second term as the PM, aimed at giving economic growth a leg-up.
PM has already prepared the broad contours of an economic revival plan to be taken up soon after the new government is formed, reports suggest While recommendations to revive growth and ease the credit squeeze are likely to find a place in the plan, tax proposals are expected to be taken up as budget recommendations. The telecom ministry has prioritised the much delayed auction of 3G airwaves and WiMAX spectrum. It has also prioritised introduction of a new spectrum policy.
The petroleum ministry is aiming for increased domestic output and a targetted-delivery system for the poor
The new government is also likely to pursue disinvestment of state-run undertakings, reports suggest. The disinvestment department under the finance ministry is reportedly working on expanding the list of companies in which the government could reduce its stake. Among these are Power Grid Corporation, Cochin Shipyard, and Rashtriya Ispat Nigam.
Financial sector reforms are likely to get a push in the coming days, which were relegated to the back seat due to persistent opposition from the Left parties.
Meanwhile, a meeting slated this morning between Prime Minister Singh and President Pratibha Patil on government formation was deferred apparently because the list of the Council of Ministers was yet to be finalised, reports suggest.
The Congress party-led coalition has the support of 322 lawmakers, Prime Minister-elect Manmohan Singh said on Wednesday, 20 May 2009, giving it a clear majority in a new government. Singh and Congress party chief Sonia Gandhi met President Pratibha Patil to seek approval to form a new government. President Pratibha Devisingh Patil on Wednesday appointed Manmohan Singh Prime Minister and invited him to name his Council of Ministers.
The invitation to form the government came after Dr. Singh and Congress president Sonia Gandhi staked claim with letters of support from 274 members of the 15th Lok Sabha. In addition, the Bahujan Samaj Party, the Samajwadi Party and the Rashtriya Janata Dal sent letters of support for a Manmohan Singh-led government directly to the President, taking the support base to 322.
Dr Singh, the 76-year-old economist-turned-politician, will be sworn in as Prime Minster of India for the second term on Friday 22 May 2009, a day after the 18th death anniversary of Rajiv Gandhi. Dr Singh was renominated as Congress Parliamentary Party leader on Tuesday (19 May 2009).
The Congress-led UPA defied predictions of a tight election and was only about 11 seats short of an majority from the 543 seats at stake in the recently concluded Lok Sabha election. Congress' alliance took 261 seats, sweeping aside its nearest rival, the bloc led by the Hindu-nationalist Bharatiya Janata Party (BJP), which won only 159 combined. Congress, which alone won 205 seats, needs a handful of partners to reach the 272 seats needed to take power, and is expected to seek the support of more smaller parties or independents.
Meanwhile, the stock market will keep a close eye on the allocation of portfolios in the new government. It remains to be seen who get the key ministries viz. power, transport and education sectors. Analysts say growth in these three sectors are key for India to achieve strong economic growth. If those seen as strong performers are given charge of these three ministries, the market may extend gains.
As per reports, Congress's strong showing in election means reformers will almost certainly be named to key ministerial portfolios viz. finance, trade, defence and foreign affairs. Fresh reformist faces may also join the cabinet for the first time, including Rahul Gandhi, heir to the powerful Gandhi dynasty and seen as pushing a new generation of leaders into the Congress.
Veteran Congress leader Pranab Mukherjee is the frontrunner for the post of the finance minister. Among the other contenders for the post of the finance minister are C Rangarajan, an economic adviser to the prime minister, Montek Singh Ahluwalia, deputy chairman of the Planning Commission. As per market talks, P Chidambaram could retain his home portfolio.
The two contenders for the post of the external affairs minister are Kapil Sibal and Salman Khursheed. Another senior leader Murli Deora may retain his old portfolio viz. petroleum. And A K Antony is also likely to retain defense portfolio. Jairam Ramesh may become Power minister
Trinamool Congress (TC) leader Mamata Banerjee is likely to be made Railway Minister. DMK is said to be insisting on IT, shipping and surface transport, environment and forest, portfolios.
As per reports, DMK and TC are bargaining hard for more berths in the Council of Ministers. While DMK is seeking nine ministerial berths, TC is insisting on getting one more ministerial portfolio than what the DMK gets, reports suggest.
Foreign funds turned sellers on Wednesday, 20 May 2009, after buying aggressively in the past two months. Foreign institutional investors (FIIs) sold shares worth Rs 234.10 crore on Wednesday. FII inflow in May 2009 totaled Rs 15,134.70 crore (till 20 May 2009) while their inflow in calendar year 2009 totaled Rs 15,491.20 crore.
Weak global markets weighed on the domestic bourses. European shares fell on Thursday to snap a five-day winning run as comments from the US Federal Reserve provided a reason for investors to reassess recent optimism over the economy. Key benchmark indices in France, Germany and UK were down by between 1.6% to 2.06%.
Standard & Poor's cut its credit-rating outlook on the UK to negative from stable though it affirmed the country's AAA sovereign credit rating. "We have revised the outlook on the UK to negative due to our view that, even assuming additional fiscal tightening, the net general government debt burden could approach 100% of GDP and remain near that level in the medium term," Standard & Poor's credit analyst David Beers said.
UK retail sales rose 0.9% month-on-month in April 2009 and 2.6% on year-on-year, according to data compiled by the Office of National Statistics. Economists had been expecting a monthly rise of 0.5% and an annual rise of 2.4%.
Asian stocks retreated today, dragging the MSCI Asia Pacific Index from a seven-month high, as the stronger yen diminished earnings prospects in Japan and the US Federal Reserve projected a deeper recession. Key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea were down by between 0.86% to 2.57%. Taiwan's Taiwan Weighted rose 0.23%.
Singapore's gross domestic product declined 14.6% in quarter ended March 2009 after shrinking 16.4% between October and December 2008. The Ministry of Trade and Industry said it saw "no decisive indicators of economic recovery." For all of 2009, the ministry said it was keeping its forecast for a 6%-9% contraction. If correct, it would be the worst economic decline since Singapore's independence from Malaysia in 1965
US stock futures slipped Thursday, as Standard & Poor's move to lower the credit-rating outlook on Britain raised fears that a downgrade of the US government's debt rating could be coming soon as well. Trading in US index futures indicated the Dow could fall 43 points at the opening bell on Thursday, 21 May 2009.
Like the UK, US public spending has swelled, the country's central bank has embarked on quantitative easing and interest rates are at ultra-low levels in reaction to the credit-led recession
US markets ended lower on Wednesday, 20 May 2009, as American Express Company said legislation to curb credit-card fees may reduce lending to consumers. The Dow Jones Industrial Average shed 52.81 points or 0.62%, to 8,422.04. The S&P 500 lost 4.66 points or 0.51%, to 903.47 and the Nasdaq Composite fell 6.70 points or 0.39%, to 1,727.84.
Fed policy makers projected a fourth-quarter US contraction of 1.3% to 2% from a year earlier, according to minutes of an April 28-29 meeting released yesterday, 20 May 2009. That compares with January projections for a contraction of 0.5% to 1.3%. US unemployment surged to 8.9% in April 2009, a level not seen since 1983.
The BSE 30-share Sensex lost 324.12 points or 2.31% to 13,736.54. The Sensex rose 28.85 points at the day's high of 14,089.51 in afternoon trade. At the day's low of 13,704.43, the Sensex fell 356.23 points in late trade.
The S&P CNX Nifty was down 59.40 points or 1.39% to 4,210.90. Nifty May 2009 futures were at 4219.50, at a premium of 8.60 points over the spot closing of 4210.90. Turnover in NSE's futures & options (F&O) segment inched up to Rs 71702.09 crore from Rs 70570.87 crore on Wednesday, 20 May 2009.
BSE clocked a turnover of Rs 7,951 crore lower than Rs 8415.09 crore on Wednesday, 20 May 2009.
The BSE Mid-Cap index was almost unchanged at 4,673.87. The BSE Small-Cap index rose 2.58%. Both the indices outperformed the Sensex.
From a recent high of 14,302.03 on Tuesday, 19 May 2009, the Sensex has lost 566.49 points or 3.95%. Yet, the Sensex is up 4099.31 points or 42.48% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 5,576.14 points or 68.33%.
Coming back to today's trade, the BSE PSU index (up 2.75%), the BSE Oil & Gas index (up 0.82%), the BSE Consumer Durables index (up 0.81%), the BSE Healthcare index (down 0.36%), the BSE TECk index (down 1%), the BSE Power index (down 1.19%), the BSE Realty index (down 1.31%), the BSE Metal index (down 1.5%), the BSE FMCG index (down 1.86%), the BSE IT index (down 1.88%), the BSE Auto index (down 2.07%), outperformed the Sensex.
The BSE Bankex (down 2.91%), the BSE Capital Goods index (down 5.41%) underperfomed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 2,100 shares rose as compared with 636 that fell. A total of 40 shares remained unchanged.
From the 30 share Sensex pack, 24 stocks fell while rest rose.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.59% to Rs 2,116.80 on profit taking after a recent sharp surge. The stock was volatile. It hit a high of Rs 2,177.85 and a low of Rs 2,107. 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.
India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) rose 8.41%, as crude oil rose. Crude oil for July 2009 delivery jumped 3.2% to $62.04 a barrel in New York yesterday, 20 May 2009, the highest settlement since 10 November 2008. The rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.
PSU OMCs rose on reports the petroleum ministry has prepared a draft Cabinet note on freeing petrol and diesel prices from government control, after which they will be linked to international movements. BPCL, HPCL and IOCL, rose by between 10.22% to 14.64%.
With international crude oil prices hovering between $50 a barrel and $60 a barrel, the oil ministry reportedly feels it is the right time to free petrol and diesel prices from government control. Petrol prices may be raised by about Rs 2 per litre and diesel rates cut by Rs 0.30 a litre if the proposal to free auto fuel prices from state control is approved by the incoming Cabinet.
According to the proposal, state-run IOC, BPCL and HPCL will be given freedom to fix rates of petrol and diesel till the time crude oil stays below $75 a barrel. If it breaches this mark, the government will step in to protect the interests of consumers.
Auto stocks fell on concerns a likely partial decontrol of petrol and diesel prices will result in an immediate rise in retail prices of petrol and diesel. Maruti Suzuki India, Mahindra & Mahindra and Heor Honda Motors fell by between 2.43% to 6.93%.
India's largest commercial vehicle maker by sales Tata Motors fell 1.77% on profit taking after recent solid surge. The company has raised Rs 4,200 crore through the issue of secured non-convertible debentures (NCD) in the local market. In a statement issued on Wednesday, 20 May 2009, the company said the funds raised will be used for part repayment of the $3-billion bridge loan facility taken for acquiring Jaguar Land Rover (JLR) last year. Of this, Tata Motors had earlier pre-paid $1.11 billion.
Capital goods stocks fell on profit taking after a recent solid surge triggered by expectations of increased infrastructure spending by the Congress-led UPA government to boost growth. India's biggest engineering & construction firm by revenue L&T lost 8.59% to Rs 1242.60 and India's biggest power equipment maker by revenue Bhel shed 3.73% to Rs 1964.30.
Banking stocks fell on profit taking after they rose recently on hopes the UPA government will pursue financial sector reforms. India's largest private sector bank by net profit ICICI Bank fell 5.15%. Its American depository receipt (ADR) fell 2.77% overnight.
India's biggest bank in terms of branch network State Bank of India (SBI) fell 3.7%. As per reports, the Congress-led UPA government may go ahead on a plan to merge six associate banks with State Bank of India to create a Indian banking behemoth. The government may also re-introduce the State Bank of India (Amendment) Bill that will enable Centre to reduce its stake in SBI to 51% from current 59.41%.
India's second largest private sector bank by operating income HDFC Bank fell 0.51%. Its American depository receipt (ADR) fell 1.63% on Wednesday, 20 May 2009.
India's biggest dedicated housing finance firm by operating income HDFC fell 5.01%. As per recent reports, HDFC is likely to cut deposit rates and follow it with a cut in lending rates.
With a decisive mandate, there are expectations that the UPA government may pursue financial sector reforms. There is likely to be some movement on passage of the Bill to amend the Insurance Act, 1938. Apart from raising the foreign investment ceiling to 49%, from 26% at present, the Bill had proposed to do away with the stipulation on Indian promoters having to mandatorily sell a part of their holdings after 10 years of operation.
There are two other Bills act for providing statutory backing to the pensions regulator and to amend the Banking Regulation Act which have been pending in Parliament for over five years, mainly due to the opposition from the Left parties. But now the Left is no longer an ally of the re-elected UPA, the Bills may finally be enacted.
The Pension Fund Regulatory & Development Authority Bill will allow the regulator to issue regulations, instead of the present system where it has to enter into agreements with service providers such as the fund managers. In addition, it will also help PFRDA regulate the pension products offered by life insurance companies. The new government may also announce tax benefits on investment in the New Pension Scheme, which will help make it attractive for investors, reports suggest
The amendments to the Banking Regulation Act will allow foreign investors to exercise voting rights in line with their shareholding. While the Reserve Bank of India has concerns on greater play for foreign banks, it will have no reservations in getting more powers for regulation of banks and supercession of borads, which are provided for in the Bill.
The government may also re-introduce the Micro-finance Development and Regulation Bill
Outsourcing focussed IT stocks fell after the Federal Reserve disclosed in its minutes from the last rate-setting meeting that it lowered its forecast for growth of the US economy this year given the weakness in the first quarter. US is the biggest market for Indian IT firms. A firm rupee also weighed on IT stocks.
India's largest software services exporter by sales TCS fell 4.25%. TCS last week it has been selected for a five-year IT services contract for auto maker Volkswagen group's operations in the United Kingdom.
India's second largest software services exporter by sales Infosys fell 2.05% as its American depository receipt (ADR) fell 2.45% overnight.
India's third largest software services exporter by sales Wipro fell 4.86%. Its ADR fell 0.72% overnight.
The rupee extended its recent solid surge. The partially convertible rupee was at 47.34 per dollar, stronger from its Wednesday's close of 47.47/48. It is up close to 10% since hitting a record low of 52.2 in early March 2009. A firm rupee affects operating profit of IT firms negatively as they earn most of their revenues from exports.
Some FMCG stocks fell as investors pulled out from the so-called defensive stocks. ITC, Hindustan Unilever, United Breweries, Marico, Nestle India and Dabur India, fell by between, 1.2% to 5.92%.
Healthcare stocks rose on hopes newly elected UPA government will give primary importance to healthcare segment and health of citizens. Dr Reddy's Laboratories, Biocon, Lupin, and Wochardt, Pfizer rose by between 1.06% to 11.83%.
India's largest drug maker by sales Ranbaxy Laboratories rose 2.66% after chairman Malvinder Mohan Singh said that the company will be able to wipe out its forex losses in the quarter ending June 2009 and head back towards profitability if rupee appreciates further. Ranbaxy posted losses of over $150 million last quarter due to the mark-to-market hit on forex derivative contracts due to depreciation in rupee. Rupee is now sub 48 mark after touching 52 mark in March 2009.
Realty stocks fell on profit taking after recent surge on expectations stability at the Centre will attract more money from foreign investors into the sector. Indiabulls Real Estate, Unitech, DLF, Ansal Properties fell by between 0.56% to 3.62%.
But, Sobha Developers jumped 10% and Housing Development and Infrastructure rose 0.99% on reports these two realty firms may raise a total of Rs 3,000 crore by the end of next month through qualified institutional placement.
Airlines stocks rose on hopes the newly elected government may allow foreign direct investment in the sector. Jet Airways, and SpiceJet rose by between 3.94% to 5.62%. While Kingfisher Airlines fell 3.01%.
The Indian aviation industry has been plagued by large losses, rising debt levels and a serious liquidity crunch. According to reports, measures like increasing the present cap on Foreign Direct Investment (FDI) in the aviation sector as well as withdrawing the restrictions on investment by foreign airlines in the domestic carriers are important to save the industry from the current crisis that it finds itself in.
Currently, foreign airlines are not allowed to pick up equity in aviation companies while foreign investors and financial institutions can hold up to a 49% stake.
Cement stocks fell on profit taking after recent surge triggered by hopes UPA government's likely thrust on infrastructure sector would boost cement demand. Grasim Industries, ACC, Ambuja Cements fell by between 1.08% to 3.68%.
India's second largest telecom services provider by sales Reliance Communications rose 4.52% after S P Shukla, president for wireless business, said revenue and profit will improve in the current quarter as the company gradually eliminates free voice services offered to new users. The company logged net additions of 2.2 million in April 2009 down from about 3 million in March 2009, after axing some free users.
India's largest steel maker by sales Tata Steel fell 1.45% even as Managing Director B. Muthuraman said sales volume in India will grow 25% in the fiscal year ending March 2010 (FY 2010). He expects profit margins to remain healthy in the current fiscal year
Cals Refineries clocked the highest volume of 4.32 crore shares on BSE. Kashyap Technologies (3.18 crore shares), Ispat Industries (2.48 crore shares), Reliance Natural Resources (2.44 crore shares) and Unitech (2.04 crore shares) were the other volume toppers in that order.
Housing Development & Infrastructure (Rs 277.96 crore), ICICI Bank (Rs 242.20 crore), DLF (Rs 240.59 crore), Reliance Industries (Rs 210.56 crore) and Tata Steel (Rs 209.59 crore) were the other turnover toppers in that order.
Pre Session Commentary - May 21 2009
Today domestic markets are likely to open negative amidst weak global cues. The US markets closed in red due to FOMC’s outlook of the economy which shows contraction in the real GDP during the current fiscal along with trough path for the housing sector. The bottom-line stocks may once again steel the charm of the day form the heavy weights. Further the UPA government formation to go with the swearing tomorrow would hardly affect the market sentiments today as traders are cautious in taking fresh positions.
On Wednesday, the domestic markets closed in red. The session started with a timid trade amidst lack of any cues from other Asian markets which were trading mixed. As the trading session progressed the markets started plunging in red exuding profit booking and cautiousness. A firm trend in London Metal Exchange (LME) thrust local market indices like CD, Metal and Auto that closed with huge gains of 9.69%, 5.22% and 4.70% respectively. On the other hand Bankex, Oil & Gas and Teck suffered losses of 2.45%, 2.09% and 1.33% respectively. The bottom line stocks for the second consecutive day outshined the benchmark indices by clocking remarkable gains of 6.03% and 8.86% respectively. We expect the markets to be trading negative.
The BSE Sensex closed low by 241.37 points at 14,060.66 and NSE Nifty ended with loss of 48.15 points at 4,270.30. BSE Mid Caps and Small Caps closed with gains of 265.95 points and 424.04 points at 4,673.77 and 5,208.18 respectively. The BSE Sensex touched intraday high of 14,405.51 and intraday low of 13,976.49.
On Wednesday, the US stock markets closed in red. The fragile outlook of the FOMC meeting suggested that the real GDP will face a contraction this year. The housing sector is also facing a trough situation amidst the downturn in economy. Sectors like financial and consumer finance companies were shattered during the day’s trade. Though Bank of America exuded some strength after announcing that it has raised $13.5 billion through share offering, the banking stocks could not resist the selling pressure. Consumer finance companies were under huge pressure after the Senate’s approval and House of Representatives approved a bill to make stringent changes for the credit card industry. Dow Component Hewlett Packard generated in-line earnings for the last quarter and has a upside outlook for the current fiscal. However the stock ended with a loss of 0.7%. The US light crude oil futures for July closed higher by 3.3% at $62.01 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) declined by 52.81 points to close at 8,422.04. The NASDAQ Composite (RIXF) index fell by 6.70 points to close at 1,727.84 and the S&P 500 (SPX) closed low by 4.66 points at 903.47.
Today major stock markets in Asia are trading negative. Hang Seng is trading low by 208.16 points at 17,267.68 followed by Shanghai Composite which is low by 29.97 points at 2,621.44. Japan''s Nikkei is low by 123.06 points at 9,221.58, Strait Times is low by 19.59 points at 2,249.65. Seoul Composite fell by 17.78 points at 1,417.92 respectively.
Indian ADRs ended mostly lower. In technology sector, Infosys ended down by 2.45% along with Wipro by 0.72%. Further, Satyam lost 0.44% while Patni Computers gained 2.27%. In banking sector ICICI Bank and HDFC Bank dropped by 2.77% and 1.63% respectively. In telecommunication sector Tata Communication decreased by 0.57% whereas MTNL advanced by 3.20%. Sterlite Industries increased by 1.52%.
The FIIs on Wednesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 12,578.90 Crore and gross debt purchased stood at Rs 44.40 Crore, while the gross equity sold stood at Rs 7,534.10 Crore and gross debt sold stood at Rs. 28.80 Crore. Therefore, the net investment of equity and debt reported were Rs 5,044.80 Crore and Rs 15.70 Crore respectively.
On Wednesday, the partially convertible rupee ended at 47.47/48 per dollar, 0.6 percent stronger than previous close at 47.75/77. Rupee continued gaining strength for the fourth consecutive day due to anticipations of more foreign capital inflow as the UPA government is expected to sworn in on May 22, 2009.
On BSE, total number of shares traded were 81.15 Crore and total turnover stood at Rs 8,415.09 Crore. On NSE, total number of shares traded was 159.89 Crore and total turnover was Rs 28,398.75 Crore.
Top traded volumes on NSE Nifty – Unitech with 108221028 shares, Suzlon Energy with 59918605 shares, DLF 27738945 shares, Reliance Comm with 26408897 shares followed by Tata Steel with 24893214 shares.
On NSE Future and Options, total number of contracts traded in index futures was 813193 with a total turnover of Rs 16,919.57 Crore. Along with this total number of contracts traded in stock futures were 529735 with a total turnover of Rs 26,987.93 Crore. Total numbers of contracts for index options were 1189773 with a total turnover of Rs 25,002 Crore and total numbers of contracts for stock options were 32442 and notional turnover was Rs 1,661.38 Crore.
Today, Nifty would have a support at 4,189 and resistance at 4,245 and BSE Sensex has support at 13,650 and resistance at 13,920.
KRBL
We recommend a buy in KRBL from a short-term trading perspective. It is apparent from the charts of KRBL that it was on an intermediate-term downtrend between late July 2008 and early March 2009, from Rs 150 to Rs 42. However, the stock reversed direction, after finding support around Rs 42. Since early March the stock has been on a medium-term uptrend, forming higher peaks and higher troughs. In mid-April, the stock conclusively penetrated the intermediate-term down trendline as well as the 50-day moving average. On May 20, the stock decisively broke out of its significant resistance at Rs 70 by advancing 10 per cent. We notice that there is an increase in volume over the past two trading sessions. The daily relative strength index (RSI) is featuring in the bullish zone and the weekly RSI is heading towards this zone. We are bullish on the stock from a short-term horizon. We expect the stock’s up-move to continue until it hits our price target of Rs 85 in the near future. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 72.
via BL
Slide may continue
The south-bound trend in the market is likely to continue on the back of a weak global indices. However raise in FIIs may help the market sentiment. Among the key domestic indices, the Nifty may test 4240 on the downside while on the upside the index could test higher levels of 4310, while the Sensex could test higher levels of 14200 and has a likely support at 13900.
US indices faltered erasing earlier gains, as the Federal Reserve's dour economic outlook curbed optimism about the health of U.S. banks. While the Dow Jones dropped 53 points to close at 8422, the Nasdaq ended 7 points lower at 1728.
Barring few select floats, most of the Indian ADRs posted loss on the US bourses. Infosys, Satyam, Wipro, Tata Motors, ICICI Bank, HDFC Bank and VSNL lost nearly 0.57-3% each, Among the select gainers Rediff gained the most and moved up over 9% while MTNL and Patni Computers ended with decent gains.
Crude oil prices inched lower, with the Nymex light crude oil for July delivery moved up by $1.94 at $62.04 a barrel and in the commodity segment, the Comex gold for June 09 series gained $10.70 to settle at $937.40 an ounce.
Daily trend of FII/MF investment in equities
On May 19 2009, FIIs were net buyers of stocks to the tune of Rs5045 crore (purchases worth Rs12579 crore and sales of Rs7534 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs619 crore (purchases worth Rs7975 crore and sales of Rs8594 crore).
A weak finish to a strong start for US stocks
Minutes of last FOMC meeting take a toll on stocks
US stocks ended modestly lower on Wednesday, 20 May, 2009. US stocks managed a very strong start on Wednesday, 20 May, 2009. But by noon, stocks gave up most of their gains and were trading flat and at the end, they registered losses. It was the financial sector that gave market a solid start in the morning. But with lack of any specific news, the sector failed to continue with its momentum. Earning reports from Target and H-P checked in line with expectations. But losses picked up momentum after last Federal Open Market Committee's meeting minutes hit the wires.
Weakness in the financial sector was the main reason behind today's loss. The sector failed to lend any substantial support to the market in the course of the day. But the same sector had managed to make market make a strong start earlier.
The Dow Jones Industrial Average ended lower by 52.8 points at 8,422. The Nasdaq Composite Index, ended lower by 6.7 points at 1,727. S&P 500 ended lower by 4.6 points at 903.7. Market had opened 101 points higher earlier during the day.
Strength in the financial sector was the main reason behind today's strong open. Bank of America concluded its previously announced common stock offering, which brought in nearly $13.5 billion through the issuance of stock carrying an average price of $10.77 per share. This boosted stocks.
Home improvement retailer, Target announced its latest earnings results ahead of the opening bell today. The company reported better-than-expected earnings this morning.
In other earnings news, Hewlett-Packard posted in-line second quarter earnings and an in-line forecast for its third fiscal quarter. HP also reaffirmed an upside outlook for fiscal 2009. But the stock failed to drive the tech sector higher. Deere announced better-than-expected earnings.
The minutes from the April FOMC meeting indicated today that participants project a contraction for real GDP this year, and that committee members believe the near-term economic outlook has weakened relative to the projections made in January. However, a recovery in sales and production is still expected to begin in the second half of this year.
Crude oil prices ended higher on Wednesday, 20 May, 2009 after energy department's weekly inventory report showed more than expected drop in crude inventories for last week. The subdued dollar also led to rising crude price. On Wednesday, crude-oil futures for light sweet crude for June delivery closed at $62.04/barrel (higher by $1.94 or 3.2%) on the New York Mercantile Exchange. It was the highest level for crude in six months.
EIA reported today that crude inventories decreased by 2.1 million barrels in the week ended 15 May, 2009. Market was expecting a decline of 1.5 million barrels. Despite the decline, crude inventories, at 368.5 million barrels, were still above the upper boundary of the average range for this time of year. Refineries, meanwhile, operated at 81.8% of their operable capacity last week, slightly higher than a week ago.
In the currency market on Wednesday, the U.S. dollar index, fell more than 1%. The dollar dropped against euro for the third straight session.
Earnings and economic reports will be in focus tomorrow. Among economic report, weekly jobless claims data are due at 8:30 AM ET tomorrow morning. Leading economic indicators for April are due at 10:00 AM ET, as is the Philadelphia Fed Index.
Market may extend losses
The key benchmark indices may extend yesterday (20 May 2009)'s losses as investors may resort to profit booking after the recent solid surge. The weak global cues may further weigh on the sentiment.
Asian stocks retreated today, dragging the MSCI Asia Pacific Index from a seven-month high, as the stronger yen diminished earnings prospects in Japan and the U.S. Federal Reserve projected a deeper recession. Key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan fell by between 0.05% to 1.61%.
Singapore's economy shrank less than initially estimated in the quarter ended March 2009, signaling the nation may be past the worst of its deepest recession since 1965. Singapore's gross domestic product declined 14.6% in quarter ended March 2009 over quarter ended March 2008 after shrinking 16.4% between October and December 2008.
The US markets ended lower on Wednesday 20 May 2009 as banking and technology stocks pulled back and comments from the US Federal Reserve dampened the market's optimism.At the closing bell, the Dow Jones Industrial Average shed 52.81 points or 0.62%, to 8,422.04. The S&P 500 lost 4.66 points or 0.51%, to 903.47 and the Nasdaq Composite fell 6.70 points or 0.39%, to 1,727.84. In fresh quarterly forecasts, the Fed projected the US economy would contract between 1.3 % and 2 % this year, with the unemployment rate rising to between 9.2 % and 9.6 %.
Minutes of the Fed's 28-29 April 2009 meeting released yesterday showed some policy makers said “a further increase” in the total amount of asset purchases may be needed to speed a U.S. economic recovery. Fed governors and district-bank presidents foresaw a deeper contraction this year and a weaker recovery next year.
Back home, inflation data for the year through 9 May 2009 will be announced by the government today. Inflation based on the wholesale price index rose 0.48% in the year through 2 May 2009, lower than previous week's annual rise of 0.7%
In the political news, the Congress party-led coalition has the support of 322 lawmakers, Prime Minister-elect Manmohan Singh said on Wednesday, giving it a clear majority in a new government. Singh and Congress party chief Sonia Gandhi met President Pratibha Patil to seek approval to form a new government. President Pratibha Devisingh Patil on Wednesday appointed Manmohan Singh Prime Minister and invited him to name his Council of Ministers.
The invitation to form the government came after Dr. Singh and Congress president Sonia Gandhi staked claim with letters of support from 274 members of the 15th Lok Sabha. In addition, the Bahujan Samaj Party, the Samajwadi Party and the Rashtriya Janata Dal sent letters of support for a Manmohan Singh-led government directly to the President, taking the support base to 322.
Dr Singh, the 76-year-old economist-turned-politician, will be sworn in as Prime Minster of India for the second term on Friday 22 May 2009, a day after the 18th death anniversary of Rajiv Gandhi. Dr Singh was renominated as Congress Parliamentary Party leader on Tuesday (19 May 2009).
Meanwhile, as per media reports key government departments have drawn up a slew of proposals to populate an ambitious reform agenda for the first 100 days of Dr Singh's second term as the PM, aimed at giving economic growth a leg-up. PM has already prepared the broad contours of an economic revival plan to be taken up soon after the new government is formed, reports suggest While recommendations to revive growth and ease the credit squeeze are likely to find a place in the plan, tax proposals are expected to be taken up as budget recommendations. The telecom ministry has prioritised the much delayed auction of 3G airwaves and WiMAX spectrum. It has also prioritised introduction of a new spectrum policy.
The petroleum ministry is aiming for increased domestic output and a targetted-delivery system for the poor
The new government is also likely to pursue disinvestment of state-run undertakings, reports suggest. The disinvestment department under the finance ministry is reportedly working on expanding the list of companies in which the government could reduce its stake. Among these are Power Grid Corporation, Cochin Shipyard, and Rashtriya Ispat Nigam.
The Congress-led UPA defied predictions of a tight election and was only about 11 seats short of an majority from the 543 seats at stake in the recently concluded Lok Sabha election. Congress' alliance took 261 seats, sweeping aside its nearest rival, the bloc led by the Hindu-nationalist Bharatiya Janata Party (BJP), which won only 159 combined. Congress, which alone won 205 seats, needs a handful of partners to reach the 272 seats needed to take power, and is expected to seek the support of more smaller parties or independents.
Financial sector reforms are likely to get a push in the coming days, which were relegated to the back seat due to persistent opposition from the Left parties.
Meanwhile, the stock market will keep a close eye on the allocation of portfolios in the new government. It remains to be seen who gets the key ministries viz. power, transport and education sectors likely to be decided at the crucial UPA meet scheduled to be held in New Delhi today. Analysts say growth in these three sectors are key for India to achieve strong economic growth. If those seen as strong performers are given charge of these three ministries, the market may extend gains.
As per reports, Congress's strong showing in election means reformers will almost certainly be named to key ministerial portfolios viz. finance, trade, defence and foreign affairs. The ministers should be named this week. Fresh reformist faces may also join the cabinet for the first time, including Rahul Gandhi, heir to the powerful Gandhi dynasty and seen as pushing a new generation of leaders into the Congress.
Among the contenders for the post of the finance minister are C Rangarajan, an economic adviser to the prime minister, Montek Singh Ahluwalia, deputy chairman of the Planning Commission, Trade Minister Kamal Nath, and External Affairs Minister Pranab Mukherjee. As per market talks, P Chidambaram could retain his home portfolio.
This week so far, The BSE 30-share Sensex lost 241.37 points or 1.69% to 14,060.66 on Wednesday 20 May 2009 on profit taking. The BSE Sensex had crawled up marginally on Tuesday, 19 May 2009 extending gains for the second straight day after Indian stocks had witnessed a historic rally on Monday, 18 May 2009, when the key indices viz. the Sensex and the Nifty surged more than 17% each on hopes a new stable government will be able to push reforms.
The Sensex has risen 4413.35 points or 45.74% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has surged 5,900.26 points or 72.3%.
Foreign funds turned sellers after buying aggressively in Indian stocks. As per the provisional figures on NSE, the foreign institutional investors (FIIs) sold shares worth a net Rs 985.53 crore on Wednesday, 20 May 2009 and domestic funds bought shares worth Rs 4.99 crore. FII inflow in May 2009 totaled Rs 15,368.80 crore (till 19 May 2009) while their inflow in calendar year 2009 totaled Rs 15,725.30 crore.
Daily News Roundup - May 21 2009
Reliance Industries has received the government go-ahead to sign agreements with firms supplying the much-needed gas to households and car owners in major cities. (ET)
ONGC and Oil India provide support of Rs9.4bn in form of subsidy. (BL)
Tata Steel rules out stake sale in Teesside plant. (FE)
Bharti-Wal-Mart will open its first cash and carry store in India in Amristar, Punjab next week. (BS)
Bharti Airtel plans to open 1600 Airtel service centres in Tamil Nadu by end of this month followed by another 4000 such centres by end of March ‘10. (FE)
PGCIL is in talks with atleast 4 US companies to jointly bid for transmission contracts there. (Mint)
Grupo Mexico has bid US$1.6bn for Asarco to counter Sterlite’s offer. (BS)
TCS expects its Asia-Pacific business to grow faster than the overall company. (BS)
Tata Motors is understood to have begun refunding dealers across the country for unsold Nano booking forms. (ET)
Tata Motors has raised Rs42bn through the issue of secured non-convertible debentures (NCD) in the local market. (ET)
Punjab National Bank to sell 26% stake in housing finance arm to Dawnay Day. (BL)
Reliance Power has bagged 4 hydro power projects of 2.5GW capacity worth over Rs180bn. (BS)
Reliance Infrastructure has achieved the financial closure of the Western Region System Strengthening power transmission project and a consortium of banks led by SBI will fund Rs9.7bn as debt. (BS)
Grasim puts its RMC investments plans at rest. (FE)
Sobha Developers and Mumbai-based HDIL are considering raising funds through QIP. (ET)
Aditya Birla Group may sell a stake in its loss-making retail venture to private equity firms Warburg Pincus, KKR and Goldman Sachs. (ET)
Tech Mahindra eyes 50% stake of VGE in Satyam’s JV. (FE)
Unitech has sold an office space in Saket, New Delhi, for Rs5bn as part of a plan to raise money. (BS)
Telenor hikes stake in Unitech Wireless to 49%. (BL)
HCL Technologies has entered into outsourcing services engagement with MTV Networks. (BS)
Jain Irrigation bags Rs650mn order from Balh Valley Medium Irrigation project in Himachal Pradesh. (BL)
Pfizer Inc has inked pact with Claris Lifesciences to market off patent injectibles. (BS)
Government plans to divest 10% in BSNL once the new minister assumes office. (BS)
BSNL may reject Huawei’s bid for the GSM line order for the western telecom circles. (BS)
KS Oil to get Rs4.5bn funding from PE investors, GDR and promoter funding for development, expansion and acquisition of agricultural assets in South East Asia. (BL)
Surya Roshni to complete its Rs6bn expansion by fiscal end. (BL)
Prolec GE announced that it has enhanced its stake in Indo Tech Transformers to 74.35%. (BL)
Texmaco bags 3,455 wagon orders from Railways. (BL)
Swan Telecom is set to outsource its IT and backoffice functions to Tech Mahindra and will award a network equipment deal to Ericsson. (ET)
NHPC, MMTC, BSNL and Oil India are some of the public sector firms that may be upgraded to navratna status ahead of their IPOs. (ET)
MTNL executives have called off their strike. (BS)
Merck board has approved Rs1.6bn buyback offer. (BS)
Air India board plans to raise Rs30bn to meet its working capital requirements among others. (BS)
MMRDA has invited pre-qualification bids for construction of the tallest building with 101 floors. (BS)
Commerce ministry has initiated steps to reduce the time taken to develop SEZ’s by simplifying procedures to get tax free industrial enclaves notified. (BS)
India may scrap the ban on rice exports after record harvest and increased stockpiles. (BS)
Monsoon has set over the Andaman Sea and part of south Bay of Bengal, right on schedule. (BS)
The new petroleum minister plans to freeing retail petroleum prices and set up transnational gas pipelines. (BS)
India’s import of sensitive products rose by 27.7% in fiscal ended March ’09. (FE)
Banks have lent Rs58.8bn to companies, individuals and other businesses during the fortnight ended May 8, according to the latest figures released by the RBI. (ET)
Demand for gold in India declined by a whopping 83% to 17.7 tons in the January-March period from the year-ago period. (ET)
A government panel is opposing a safeguard measure aimed at preventing owners of new telecom licences from making windfall profits. (ET)
Drizzles and fizzles on the Street!
I think it's how someone becomes good at anything. You practice when nobody's watching - in the heat of the summer or even when its drizzling out.
The streets of Mumbai saw some drizzling even as the heat in the market appears to be slowly fizzling. Though the convincing win for the UPA has been greeted with cheers, the road to recovery will not be a smooth one. It will take some doing for the new regime to engineer the economic turnaround. A good monsoon will surely help with it will need some heavy rain of reforms in the UPA’s new reign.
Global economic conditions remain precarious. The Fed expects a full recovery in the US to be 5-6 years away. Singapore’s economy shrank by 10% in the first quarter. Japan’s economy contracted at a record pace of 15.2% in Q1. The yen has risen to a two-month high against the dollar on speculation that a recession in the US is far from over.
Today, we expect another cautious opening and sideways trading in the key indices. Though the broader market was on fire, one should be wary of the rally in the small-and mid-caps.
Key Results Today: Bajaj Auto, Bajaj Holding, Federal Bank, Gammon Infra, Inox, IRB Infra, Nitin Fire, Unichem Labs and Varun Shipping.
FIIs were net sellers in the cash segment on Wednesday at Rs9.85bn while the local institutions were net buyers of Rs49.9mn. In the F&O segment, the foreign funds were net sellers at Rs34.6bn. On Tuesday, FIIs were net buyers at Rs50.45bn in the cash segment. Mutual Funds were net sellers at Rs17.2bn on the same day.
US stocks ended lower on Wednesday, erasing earlier gains on the back of the Federal Reserve's grim economic. The Dow Jones Industrial Average fell about 50 points, or 0.6%, after gaining more than 100 points early in the session. The S&P 500 index fell 0.5% while the Nasdaq Composite lost 0.4%.
Stocks surged in early trading after Bank of America's $13.5 billion stock sale raised bets that the financial sector is stabilising. Energy stocks also rallied as oil prices rose to a 6-month high. But the market slumped in the final hour of trading after the Fed reduced its growth targets and raised unemployment expectations. The central bank also said it expects a recovery in sales and production to begin during the second half of the year.
Still, the overall tone remains relatively bullish. The CBOE Volatility Index, or VIX, which is considered a gauge of investor fear, fell further after ending at its lowest level since September on Tuesday. The VIX added 0.8% to 29.03. The gauge slipped below 30 for the first time in eight months a day earlier. It was at 25.66 on Sept. 12, the session before Lehman Brothers Holdings Inc. filed for bankruptcy.
According to the minutes from its last policy meeting, the Fed said it expects 2009 GDP to shrink between 1.3% and 2%. That compares with January's projection for a decline between 0.5% and 1.3%. The Fed's staff now expects the unemployment rate to rise to between 9.2% and 9.6%. In January, the jobless rate was forecast to rise to between 8.5% and 8.8%, but the unemployment rate topped that in April, hitting 8.9%. But the Fed also pointed to signs the pace of the recession is easing.
Treasury Secretary Tim Geithner told the Senate Banking Committee that stress-tested banks have set out to raise $56 billion to plug holes in their books. Geithner also said there are "encouraging signs the financial system is starting to heal." But he warned that "we're only beginning to lay the foundation for economic recovery."
After the close on Tuesday, Bank of America said it has raised $13.47 billion through a sale of stocks. The bank has issued 1.25 billion shares since Friday at an average price of $10.77. BofA, whose shares rose more than 2%, needs to raise $33.9 billion to meet the government's stress test requirements.
Congress passed a bill that imposes greater restrictions on the credit card industry for raising fees and interest rates. The approval came despite strong objections by banking industry advocates, who say it could result in tightened credit to Americans.
Separately, President Obama said the financial markets have improved recently, but he cautioned that unemployment will remain elevated for some time. The president's remarks came during a public meeting of his special economic advisory group, which is led by former Fed chief Paul Volcker.
Also, the Senate's Special Committee on Aging heard testimony that the agency that guarantees the nation's corporate pensions, the Pension Benefit Guaranty Corp., posted a record $33.5 billion deficit in the first half of the current fiscal year.
Retailer Target reported that first-quarter profit fell to 69 cents per share, a 7% decline from 75 cents a year earlier. The results topped analyst expectations of 60 cents per share. Target shares rose more than 2%.
Late on Tuesday, PC maker Hewlett-Packard (HP) reported quarterly results that were in line with Wall Street's estimates. The company also said it would cut 6,400 jobs, or 2% of its workforce. HP shares fell 5%.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.19% from 3.24% on Tuesday.
Crude prices rose to a six-month high, settling up $1.94 to $62.04 a barrel, after the government said US supplies of crude oil and gasoline fell more than expected last week. It was the first settlement above $60 for the active-month contract since Nov. 10; Wednesday was the first day that the July contract was the active month.
The dollar slipped versus major international currencies including the euro, the yen and the British pound.
COMEX gold for June delivery rose $10.70 to settle at $937.40 an ounce.
After an overwhelming rally post the Lok Sabha election results, bulls finally took a breather. The slide could be attributed to offloading witnessed in the index heavyweights like DLF, BHEL, ICICI Bank, Bharti Airtel, Sun Pharma and HDFC.
On the other hand, the BSE Mid-Cap index rose 6% and the BSE Small-Cap index surged 8.8%.
Finally, the Sensex slipped 241 points or 1.6% to close at 14,060 after touching a high of 14,406 and a low of 13,976. The index had opened at 14,230 against the previous close of 14,302. The NSE Nifty declined 48 points or 1.1% to shut shop at 4,270.
Among the BSE Sectoral indices BSE Consumer Durable index was the top gainer gaining 9.6%, followed by the BSE Metal index up 5.2%, BSE Auto index up 5%, BSE PSU index up 3% and BSE Pharma index gaining 2%.
On the other hand, the BSE Bankex index was the top loser declining 2.5% and BSE Oil & Gas index down 2%.
Shares of Tata Motors rose over 19% to Rs367 after reports stated that a credit ratings company said the company was planning to sell Rs42bn of debentures. The company plans to issue the debentures in four tranches aiming to refinance a bridge loan taken to buy Jaguar and Land Rover and SBI has guaranteed the debt, added reports.
Shares of Tata Steel rallied by over 13% to Rs371 after reports stated that the company has secured a Rs20bn loan from LIC, aiding the company make additional equity infusions into its UK subsidiary. The scrip touched an intra-day high of Rs378 and a low of Rs324 and recorded volumes of over 8.7mn shares on BSE.
Shares of Airline companies surged to higher altitudes as the operational costs for the domestic airlines’ could drop by as much as 8%, if the dollar continues to depreciate against the rupee. Almost one-third of their operational expenses are denominated in US dollars.
Reports also stated that the civil minister suggested the formation of a civil aviation policy, allowing foreign airlines to acquire up to 49% stake in domestic carriers.
Stocks like Kingfisher Airlines sky rocketed by over 27% to Rs56, Jet Airways rallied by over 14% to Rs278, Spice Jet shot up by over 18% to Rs18.6.
Shares of M&M surged by over 8% to Rs678 after reports stated that the Strike at the company’s Nashik plant has been called off, and it would re-start normal production in 2 days. The scrip touched an intra-day high of Rs684 and a low of Rs603 and recorded volumes of over 0.2mn shares on BSE.
The frenzy of Monday quickly dissipated and the benchmarks ended in the red led by selling in the heavyweights. Markets might further consolidate as traders and investors would be cautious after an overwhelming rally.
Crude at six month highs
More than expected drop in crude inventories spurt prices
Crude oil prices ended higher on Wednesday, 20 May, 2009 after energy department's weekly inventory report showed more than expected drop in crude inventories for last week. The subdued dollar also led to rising crude price.
On Wednesday, crude-oil futures for light sweet crude for June delivery closed at $62.04/barrel (higher by $1.94 or 3.2%) on the New York Mercantile Exchange. It was the highest level for crude in six months. Last week, crude ended lower by 3.9%.
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 56% since then. Year to date, in 2009, crude prices are higher by 29.2%. On a yearly basis, crude prices are lower by 41%.
EIA reported today that crude inventories decreased by 2.1 million barrels in the week ended 15 May, 2009. Market was expecting a decline of 1.5 million barrels. Despite the decline, crude inventories, at 368.5 million barrels, were still above the upper boundary of the average range for this time of year. Refineries, meanwhile, operated at 81.8% of their operable capacity last week, slightly higher than a week ago.
Lower refinery production pushed gasoline inventories down by 4.3 million barrels to 204 million barrels, falling below the lower limit of the average range. The EIA also reported distillate stockpiles rose by 600,000 barrels. Motor gasoline demand had averaged about 9.1 million barrels per day over the past four weeks, down by 1.2% from the same period last year. Demand for distillate fuels, which include heating oil and diesel, fell 12%, and jet fuel consumption dropped 9%.
In the currency market on Wednesday, the U.S. dollar index, fell more than 1%. The dollar dropped against euro for the third straight session.
Last week, the International Energy Agency reported on Thursday that it now expects demand to fall 2.6 million barrels a day from 2008 levels. This is 200,000 barrels more than the IEA had projected a month ago. This perhaps kept further rise in crude prices from check.
Also at the Nymex on Wednesday, June-reformulated gasoline ended slightly lower at $1.8095 a gallon, and June heating oil gained 5.45 cents, or 3.7%, to $1.5411 a gallon.
Natural gas for June delivery rose 5.6 cents, or 1.4%, to $3.97 per million British thermal units. The EIA is scheduled to release last week's natural gas inventories on Thursday. Market is expecting a buildup between 93 billion cubic feet to 98 billion cubic feet.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for June delivery closed at Rs 2,932/barrel, higher by Rs 48 (1.7%) against previous day's close. Natural gas for June delivery closed at Rs 193.4/mmbtu, lower by Rs 1.8/mmbtu (0.9%).
Bullion metals rise further
Prices rise to seven week high as dollar index sheds more than 1%
Precious metals ended higher on Wednesday, 20 May, 2009 at Comex. Prices rose today once again following the depressed dollar. A report by World gold council regarding increased demand for gold in first quarter also spurred 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 Wednesday, Comex Gold for June delivery gained $10.7 (1.2%) to close at $937.4 an ounce on the New York Mercantile Exchange. It was highest price of gold in last seven weeks. Last week, gold ended higher by 1.8%. Year to date, gold prices are higher by 8%.
For the month of April, gold had 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 (9%) since then.
On Wednesday, Comex silver futures for July delivery gained 15.5 cents (1.1%) at $14.28 an ounce. Year to date, silver has climbed 26.1% this year. For 2008, silver had lost 24%.
In the currency market on Wednesday, the U.S. dollar index, fell more than 1%. The dollar dropped against euro for the third straight session.
In a report issued today, the World Gold Council reported that gold investment demand in the first quarter more than tripled from a year ago to a record level as investors piled into gold exchange-traded funds to hedge against the global economic downturn.
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 12 (0.08%) at Rs 14,333 per 10 grams. Prices rose to a high of Rs 14,373 per 10 grams and fell to a low of Rs 14,233 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 66 (0.29%) lower at Rs 22,267/Kg. Prices opened at Rs 22,220/kg and fell to a low of Rs 22,206/Kg during the day's trading.
Subscribe to:
Posts (Atom)