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Monday, June 01, 2009
Nifty June 2009 futures at premium
Turnover declines
Nifty June 2009 futures were at 4535, at a premium of 5.10 points as compared to the spot closing of 4,529.90. Turnover in NSE's futures & options (F&O) segment was Rs 58,484.39 crore lower than Rs 63,060.58 crore on Friday, 29 May 2009.
Reliance Industries June 2009 futures were at premium at 2293.95 compared to the spot closing of 2282.20.
GMR Infrastructure June 2009 futures were at premium at 176.90 compared to the spot closing of 175.10.
Unitech June 2009 futures were near spot price at 92.40 compared to the spot closing of 92.25.
In the cash market, the S&P CNX Nifty surged 80.95 points or 1.82% at 4,529.90.
Post Session Commentary - June 1 2009
The domestic market continued its northward journey for the fourth straight session on the back sustained buying across the sectoral indices. The sentiment was boosted on the back of favoring cues from the global markets as well as anticipation of the strong push for the economic reforms by the newly elected UPA government. The sentiment also got a further push due to the NSE announcement after the trading hours on Friday regarding the reduction in the lot size of a number of derivatives contracts as a part of a periodic review to meet a previously set value of the contract at Rs2 lakh. The changes for most of the stocks will be applicable from July 2009 derivatives contracts. Moreover, the signs of recovery in the Indian economy as the manufacturing activity in India expanded for the second straight month in May 2009 to its highest in eight months, a survey showed. The Market Purchasing Managers'' Index (PMI) based on a survey of 500 companies rose to 55.7 in May 2009 from April''s 53.3.
The Indian market opened the session with a upbeat note tracking the positive global markets and favoring cues from the domestic markets. But the market pared some of its early gains soon after the firm start as the profit booking prevails across selective sectoral indices. But again the market gained momentum after the mid session to close the day with decent gains. Moreover, in the global arena, the US Markets on Friday closed in green. After a gyrating start the markets managed to close with remarkable gains. Financial stocks were the later movers as the sector started with a loss of 1% however towards the end it closed with a gain of 3%. Diversified metal and mining companies were in the limelight with phenomenal gains of 4.2% and 3.3%.The GDP for the first quarter recorded a drop of 5.7% better than the 6.1% decline that was report in the advance GDP reading. However, benchmark indices gained strength during the session with BSE Sensex closed above 14,800 level and NSE Nifty above 4,520 mark. From sectoral front, investors on-loaded position across the sectors led by Realty, Metal, IT, FMCG, Consumer Durables and Power index.
Among the Sensex pack 23 stocks ended in green territory and 7 in red. The market breadth indicating the overall health of the market remained firm as 2,289 stocks closed in positive while 542 stocks closed in negative and 40 stocks remained unchanged in BSE.
The BSE Sensex closed up by 215.38 points or 1.47% at 14,840.63 and NSE Nifty closed higher by 80.95 points or 1.82% at 4,529.90. BSE Mid Caps and Small Caps closed with gains of 147.47 and 209.96 points at 5,204.21 and 6,196.78. The BSE Sensex touched intraday high of 14,906.81 and intraday low of 14,655.49.
Gainers from the BSE Sensex pack are Tata Steel (7.79%) followed by Sterlite Industries (6.75%), ACC (6.40%), NTPC (6.17%), JP Associates (6.12%) and M&M (5.25%).
Losers from the BSE Sensex pack are ICICI bank (2.36%) along with BHEL (2.27%), Bharti Airtel (1.67%) and Ranbaxy Labs (1.51%).
On the global markets front the Asian markets which opened before the Indian market, closed in green. Hang Seng, Sanghai Composite, Strait Times, Nikkei and Seoul Composite closed up by 3.95%, 3.36%, 2.19%, 1.63% and 1.38% at 18,888.59, 2,721.28, 2,380.07, 9,677.75 and 1,415.1 respectively.
European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading up by 3.08% at 5,092.88 and in London FTSE 100 is trading higher by 1.39% at 4,479.38.
The BSE Realty index increased (5.65%) or 215.70 points to close at 4,035.59. Main gainers are Unitech (15.61%), Orbit Co (9.35%), HDIL (8.17%), Penland (8.01%), Phoenix Mill (7.82%) and Akruti City (4.99%).
The BSE Metal index surged (5.32%) or 578.85 points at 11,457.27. Scrips that mostly gained are Welspun Gujarat Stahl (14.60%), Gujarat NRE (9.94%), Jindal Saw (8.88%), Jindal Steel (8.81%), Tata Steel (7.79%) and Sterlite Industries (6.75%).
The BSE IT index also ended higher by (3.95%) or 118.42 points at 3,115.97. Rolta Ind (12.22%), NIIT Ltd. (11.43%), Tech Mahindra (10.28%), Oracle Fin (5.11%) and Infosys Technologies (4.67%) ended in positive territory.
The BSE FMCG index grew (2.76%) or 57.97 points to close at 2,154.61. Gainers are ITC (5.04%), United Spirits (4.61%), Colgate Palmolive (1.14%) and HUL (0.76%).
The BSE Consumer Durables advanced (2.68%) or 73.86 points at 2,831.93. Gainers are Videocon Industries (5.71%), Rajesh Export (5.61%), Gitanjali Gems (2.99%) and Titan Industries (2.43%).
The BSE Power index gained (2.63%) or 75.69 points to close at 2,957.05. Gainers are Suzlon Energy (15.98%), NTPC (6.17%), Power Grid (4.88%), Neyivelli Lig (3.05%) and Torent Power (2.79%).
The BSE Auto increased (1.94%) or 89.44 points at 4,700.05. Gainers are Mahindra & Mahindra (5.25%), Ashok Leyland (4.47%), Hero Honda (1.92%) and Maruti Suzuki (1.84%).
Satyam Computer Services Ltd surged 6.09% to Rs56.65. The company announced the appointment of Venki Prathivadi as the new country manager for Satyam Australia and New Zealand (ANZ). Satyam has also appointed Vijay Prasad as principal advisor to the ANZ region
Parsvnath developers shot up 4.96% to Rs101.60. The company gets approval for Parsvnath La Tropicana Premium luxury project in the heart of Delhi worth Rs 1300 Crores.
Maruti Suzuki India Limited grew 1.84% to Rs1040.30. The company sold a total of 79,872 vehicles in May 2009. This includes 9,087 units for export. The company had sold a total of 69,001 vehicles in May 2008.
Glenmark Generics Inc. USA (GGI), a subsidiary of Glenmark Generics Limited (GGL), has received the final ANDA approval from the United States Food arid Drug Administration (U.S. FDA) for Hydralazine Hydrochioride Tablets. The product has been approved in the active strengths of 10 mg, 25mg, 50mg and 100 mg as the AB rated generic Pliva''''s equivalent Hydralazine Hydrochloride. : Glenmark will immediateliy commence marketing and shipping their generic version of the four presentations in various sku''''s within the U.S market.
BSE Bulk Deals to Watch - June 1 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
1/6/2009 524412 AAREY DRUGS RESHMA MOGALRAO PAGARE S 25000 34.65
1/6/2009 521070 ALOK INDUSTR SONATA INVESTMENTS LTD S 3000000 23.30
1/6/2009 512149 AVANCE TECHN JASMIN SUSILKUMAR BAJORIYA B 99000 19.95
1/6/2009 512149 AVANCE TECHN CHANDRAKANTBSHAH B 333414 19.59
1/6/2009 512149 AVANCE TECHN JASMIN SUSILKUMAR BAJORIYA S 51201 19.30
1/6/2009 512149 AVANCE TECHN JASMINSBAJORIYA S 263246 19.45
1/6/2009 512149 AVANCE TECHN DINESHMASTERDEVANG S 35000 19.95
1/6/2009 531733 BAFNA SPINNI PUKHRAJHIRACHANDBAFNA S 425000 2.35
1/6/2009 511664 BGIL FL TEC PRARTHANATARUNKUMARBRAHMBHATT B 35000 45.57
1/6/2009 531719 BHAGIR CHE I VVSS ESTATES PRIVATE LIMITED B 31410 54.35
1/6/2009 531719 BHAGIR CHE I VIJAYALAKSHMI INS AND PEST LTD S 30500 54.30
1/6/2009 512253 BIO GREEN I RAMESHJAMNADASBHAYANI S 75000 13.84
1/6/2009 512253 BIO GREEN I MILINDKESHAVNAVERKAR S 50000 13.84
1/6/2009 532330 BIOPAC INCOR CHIRAG BHARAT (HUF) S 100992 14.11
1/6/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD B 362785 6.08
1/6/2009 531682 CAT TECHNOL JMP SECURITIES PVT LTD B 230000 6.22
1/6/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD S 418512 6.16
1/6/2009 531682 CAT TECHNOL JMP SECURITIES PVT LTD S 225000 6.10
1/6/2009 505923 CEEKAY DIAKI DECENT FINANCIAL SERVICES PVT LTD S 26985 34.45
1/6/2009 500147 CMI FPE WALLSTREETPVTLTD B 29455 318.00
1/6/2009 500147 CMI FPE JANAKCHIMANLALTHACKER S 29500 318.00
1/6/2009 526987 COMMIT CAP S PRATEEK RAMNIWAS JHAVERI S 25000 10.48
1/6/2009 531270 DAZZEL CONFI PARESHDHIRAJLALSHAH B 35342 6.68
1/6/2009 502820 DCM LIMITED JHAWAR EXPORT FABRICS PVT LTD B 90000 33.85
1/6/2009 502820 DCM LIMITED SADHNA STOCKS & SECURITIES PVT LTD S 90000 33.85
1/6/2009 532984 ENSO SECUT SIVA RAM PRASAD GADDE S 82150 20.97
1/6/2009 532984 ENSO SECUT RIDHIMA GADDI S 55215 20.95
1/6/2009 532818 EVINIX DEUTSCHE SECURITIES MAURITIUS LIMITED S 580000 4.03
1/6/2009 590024 FERT CHEM MANOJ MITTAL B 34143 47.85
1/6/2009 590024 FERT CHEM HETALCHETANMEHTA B 100000 47.11
1/6/2009 531137 GEMSTONE INV KISHOR BHAIBCHAUHAN S 25000 23.44
1/6/2009 532857 GLORY POLY SHAH COAL PVT LTD S 130000 27.11
1/6/2009 531913 GOPAL IRON HIMAL KANCHANLAL PARIKH HUF B 44100 6.82
1/6/2009 531913 GOPAL IRON BALDEVSINH VIJAYSINH ZALA S 45500 6.81
1/6/2009 514386 GUJ COTEX VINODKUMARMAFATLALGOSAI S 20000 5.91
1/6/2009 504176 HIGH ENERGY BP FINTRADE PRIVATE LIMITED S 7500 131.13
1/6/2009 514034 JBF.IND.LTD BHAGIRATHARYA B 1000000 64.60
1/6/2009 514034 JBF.IND.LTD LEVERAGE INDIA FUND S 1020106 64.64
1/6/2009 532642 JINDAL SOUTH QUANTUM ENDOWMENT FUND N V S 111297 530.83
1/6/2009 516078 JUMBO BAG LT SEEMAHEMANDRAAGARWAL B 55000 28.81
1/6/2009 516078 JUMBO BAG LT NIKHILSSHAH S 36210 29.04
1/6/2009 524826 JUPITER BIOS ABN AMRO BANK NV S 85000 73.61
1/6/2009 524826 JUPITER BIOS HSBC BANK (MAURITIUS) LIMITED S 88000 73.18
1/6/2009 532081 K SERA SERA BASMATI SECURITIES PVT LTD B 384709 14.93
1/6/2009 530813 KRBL LTD HITESHSHASHIKANTJHAVERI B 125960 102.65
1/6/2009 530273 LIBERTY PHOS BHARAT EQUITY SERVICES LIMITED S 31000 20.24
1/6/2009 500255 LML LTD. JMP SECURITIES PVT LTD B 568425 12.41
1/6/2009 531131 MASCON GLOBA JMP SECURITIES PVT LTD B 1933021 6.72
1/6/2009 531131 MASCON GLOBA JMP SECURITIES PVT LTD S 1929261 6.68
1/6/2009 531131 MASCON GLOBA MACQUARIE BANK LTD DR CONVERSION AC S 3000000 6.71
1/6/2009 532045 NEXXOFT INFO MANOJHIMATLALMEHTA S 35000 14.79
1/6/2009 532986 NIRAJ CEMENT SAKETAGARWAL B 60000 34.80
1/6/2009 532986 NIRAJ CEMENT RAJ CORPORATION S 157331 34.80
1/6/2009 590077 RANKLIN SOLU V MANIKYALA RAO B 36441 28.42
1/6/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC GENUINE STOCK BROKERS PVT. LTD. B 76517 1168.87
1/6/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD B 80262 1179.46
1/6/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC GENUINE STOCK BROKERS PVT. LTD. S 76517 1169.33
1/6/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD S 80262 1180.21
1/6/2009 531646 RFL INTERNAT KIRTIKUMAR MAFATLAL VAKHARIA B 30000 0.74
1/6/2009 531646 RFL INTERNAT AANALRDESAI S 31499 0.74
1/6/2009 532731 ROHIT FERRO BP FINTRADE PRIVATE LIMITED S 217306 35.35
1/6/2009 502448 ROLLATAINERS ADHBHUT REALTORS PVT. LTD B 500000 94.11
1/6/2009 502448 ROLLATAINERS WLD INVESTMENTS P.LTD. S 500000 94.11
1/6/2009 526753 ROSELABS LTD NIRMALADEVITRILOKCHANDAGRAWAL S 71676 10.10
1/6/2009 532886 SEL MANUF MAVI INVESTMENT FUND LTD. S 100000 85.48
1/6/2009 519228 TEMPT.FOODS MARYADA BARTER PVT LTD B 300000 42.05
1/6/2009 519228 TEMPT.FOODS HSBC BANK (MAURITIUS) LIMITED S 540000 41.90
1/6/2009 532349 TRAN COR IND SALASAR STOCK BROKING LIMITED B 500000 68.00
1/6/2009 532349 TRAN COR IND RUANE CUNNIFF & GOLDFARB INC.SUB A/C ACACIA BANYAN PARTNERS S 677285 68.83
1/6/2009 532765 USHER AGRO DRB SECURITIES PVT LTD B 120994 37.91
1/6/2009 532765 USHER AGRO OODNAP AGROTECH LIMITED S 552883 35.37
1/6/2009 532765 USHER AGRO TAIB BANK A/C TSML S 592030 35.07
1/6/2009 532765 USHER AGRO DRB SECURITIES PVT LTD S 120994 36.55
1/6/2009 523261 VENKYS INDI PRAGNESHROHITKUMARPANDYA B 52520 141.03
1/6/2009 523261 VENKYS INDI AJAY GUPTA B 81120 145.35
1/6/2009 523261 VENKYS INDI PRAGNESHROHITKUMARPANDYA S 52520 146.00
1/6/2009 523261 VENKYS INDI JAIDEEPSAMPAT S 53079 139.58
1/6/2009 530477 VIKRAM THERM JYOTSANANATHALALSHAH S 11000 19.16
1/6/2009 532360 VINTAGE CARD ASHOK KUMAR BILGAIYAN B 3500 23.50
1/6/2009 532360 VINTAGE CARD RAJESH LAHOTI B 3500 23.50
1/6/2009 532360 VINTAGE CARD ASHOK KUMAR BILGAIYAN S 3500 23.50
1/6/2009 532360 VINTAGE CARD RAJESH LAHOTI S 3500 23.50
1/6/2009 512217 WOOLITE MERC UMESHPURUSHOTTAMCHAMDIA B 29437 16.50
1/6/2009 512217 WOOLITE MERC VISHALRAMESHSEKSARIA S 24400 16.50
NSE Bulk Deals to Watch - June 1 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
01-JUN-2009,ADLABSFILM,Adlabs Films Limited,A TO Z STOCK TRADE PRIVATE LIMITED,BUY,336974,377.54,-
01-JUN-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,4084466,23.95,-
01-JUN-2009,EVINIX,Evinix Accessories Limite,HI-GROWTH CORPORATE SERVICES PVT. LTD.,BUY,534774,3.94,-
01-JUN-2009,HOTELRUGBY,HOTEL RUGBY LTD,MASTERMIND FINANCIAL SERVICES PRIVATE LIMITED.,BUY,73404,8.80,-
01-JUN-2009,INDOWIND,Indowind Energy Limited,BP FINTRADE PRIVATE LIMITED,BUY,256677,40.90,-
01-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,12560296,24.28,-
01-JUN-2009,LML,LML Ltd.,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,430119,12.40,-
01-JUN-2009,RENUKA,Shree Renuka Sugars Limit,LANSFORSAKRINGAR ASIA PACIFIC,BUY,1380349,127.86,-
01-JUN-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,BUY,139813,1171.27,-
01-JUN-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,104895,1167.60,-
01-JUN-2009,ROLTA,Rolta India Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,814661,125.12,-
01-JUN-2009,VENKEYS,Venky's (India) Limited,KOOKMEN SECURITIES P LTD,BUY,66672,143.11,-
01-JUN-2009,VENKEYS,Venky's (India) Limited,PANDYA PRAGNESH ROHITKUMAR,BUY,56823,142.12,-
01-JUN-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1808314,22.88,-
01-JUN-2009,ADLABSFILM,Adlabs Films Limited,A TO Z STOCK TRADE PRIVATE LIMITED,SELL,336977,377.93,-
01-JUN-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,4084466,23.95,-
01-JUN-2009,EVINIX,Evinix Accessories Limite,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,920000,3.96,-
01-JUN-2009,EVINIX,Evinix Accessories Limite,HI-GROWTH CORPORATE SERVICES PVT. LTD.,SELL,564910,3.97,-
01-JUN-2009,GLORY,Glory Polyfilms Limited,HANURANG VINIMAY PVT LTD,SELL,150000,27.13,-
01-JUN-2009,GLORY,Glory Polyfilms Limited,SHAH COAL PVT LTD,SELL,100000,27.04,-
01-JUN-2009,GLORY,Glory Polyfilms Limited,TOUCHSTONE FINVEST SERVICES PVT LTD,SELL,116327,27.70,-
01-JUN-2009,HOTELRUGBY,HOTEL RUGBY LTD,DARSHANA MAHENDRA THACKER,SELL,75000,8.80,-
01-JUN-2009,HOTELRUGBY,HOTEL RUGBY LTD,MASTERMIND FINANCIAL SERVICES PRIVATE LIMITED.,SELL,7620,9.05,-
01-JUN-2009,INDOWIND,Indowind Energy Limited,BP FINTRADE PRIVATE LIMITED,SELL,186723,40.60,-
01-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,12436796,24.29,-
01-JUN-2009,JINDALPHOT,Jindal Photo Limited,CONSOLIDATED-PHOTO-&-FINVEST-LTD,SELL,108678,136.59,-
01-JUN-2009,JINDALSWHL,Jindal SouthWest Hold Ltd,Quantum Fund N.V.,SELL,118703,535.65,-
01-JUN-2009,LML,LML Ltd.,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,310119,12.31,-
01-JUN-2009,NUCLEUS,Nucleus Software Exports,Copthall Mauritius Investment Ltd,SELL,215500,88.17,-
01-JUN-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,SELL,139813,1171.60,-
01-JUN-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,104895,1168.35,-
01-JUN-2009,ROLTA,Rolta India Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,814661,125.72,-
01-JUN-2009,SELMCL,SEL Manufacturing Company,MAVI INVESTMENT FUND LTD DEUTSCHE BANK,SELL,100000,85.80,-
01-JUN-2009,VENKEYS,Venky's (India) Limited,KOOKMEN SECURITIES P LTD,SELL,43031,146.68,-
01-JUN-2009,VENKEYS,Venky's (India) Limited,PANDYA PRAGNESH ROHITKUMAR,SELL,56823,143.03,-
01-JUN-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1753247,22.87,-
Buoyancy lifts Sensex past 14800
The market extended its winning streak for the fourth consecutive session, as firm Asian indices and strong buying by domestic investors on account of it being the second day of the of the June series in derivatives segment helped the sentiment remain bullish for the entire trading session. Taking its healthy up-move of over 1,000 points registered in the last three sessions further, the Sensex commenced 122 points higher at 14747 and swiftly moved past 14800 in early trades gaining 200 points for the day. While the market largely remained unchanged above 14800 in the first half, the index received a jolt in afternoon, as it slipped on selective selling to touch the day's low of 14655. However, a smart bounce back thereafter and buoyancy in heavyweights, reality and metal stocks towards the close saw the index surge to an intra-day high of 14907. The Sensex finally ended the session 215 points up at 14841, while Nifty added 84 points to close at 4533.
The market breadth was positive. Of 2,870 stocks traded on the BSE, 2,272 stocks advanced, 552 stocks declined and 46 stocks ended unchanged. Among sectoral indices, BSE Realty jumped 5.65% at 4036 followed by BSE Metal (up 5.32% at 11457), BSE IT (up 3.95% at 3116) and BSE FMCG (up 2.76% at 2155). Rest of indices gained 1-2% each. BSE HC and BSE Bankex lost marginally for the day.
Barring a few select counters, most of the heavyweights ended at higher levels. Among blue chips, Tata Steel shot up by 7.79% at Rs437.95, Sterlite Industries soared 6.75% at Rs664.75, ACC surged 6.40% at Rs833.10, National Thermal Power Corporation advanced by 6.17% at Rs228.75, JP Associates added 6.12% at Rs220.20, Mahindra & Mahindra moved up 5.25% at Rs710.45, HDFC scaled up 5.16% at Rs2,298.55 and ITC was up 5.04% at Rs192.90. Among laggards, ICICI Bank dropped 2.36% at Rs723.20 and Bharat Heavy Electrical Ltd shed 2.27% at Rs2,125.60 while Bharti Airtel, Ranbaxy Laboratories, HDFC Bank, Larsen & Toubro and Tata Consultancy Services closed marginally lower.
Sensex, Nifty scale multi-month highs
Key benchmark indices extended gains for the fourth straight session to settle at multi-month highs in anticipation of a strong push for economic reforms by the newly-elected United Progressive Alliance (UPA) government. But the market was volatile. The BSE 30-share Sensex jumped 215.38 points, or 1.47%, off 66.18 points from the day's high and up 182.62 points from the day's low.
Strong global markets, sustained buying by foreign funds and signs of improving global and domestic economy propelled the market further. Also boosting the sentiment, the National Stock Exchange (NSE) after trading hours on Friday, 29 May 2009, announced a reduction in the lot size of a number of derivatives contracts as a part of a periodic review to meet a previously set value of the contract at Rs 2 lakh. For most of the stocks, the changes will be applicable from July 2009 derivative contracts. The reduction in lot size may result in increased participation from retail investors.
Thus, the lot size of Maruti Suzuki has been slashed to 200 from 800 and that of Steel Authority of India (Sail) has been reduced to 1350 from 5400. The lot size of Axis Bank has been halved to 450 from 900 and for Reliance Industries also the lot size has been halved to 150 from 300. State Bank of India's lot size too has been halved to 132 from 264.
Foreign funds are aggressively buying Indian stocks. Foreign funds net bought shares worth Rs 21307.80 in May 2009 in 2009.
The market was volatile. After an early surge triggered by firm global markets, Indian stocks pared gains on profit taking. The market recovered from lower level later. Volatility was high in early afternoon trade. Stocks surged in afternoon trade on firm European markets which opened after Indian market. Volatility heightened in the last one hour of trade.
There are signs of recovery in the Indian economy. Manufacturing activity in India expanded for a second straight month in May 2009 to its highest in eight months, a survey showed, reflecting a revival in domestic demand but export orders remained weak. The Market Purchasing Managers' Index (PMI) based on a survey of 500 companies, rose to 55.7 in May 2009 from April's 53.3, well above the threshold of 50 that separates expansion from contraction.
The manufacturing index was boosted mainly by the new orders index, which rose to 59.1 in May 2009 from 54.9 in April 2009. Manufacturing makes up about 15% of India's gross domestic product. Although domestic demand improved, the pricing power of manufacturers was hurt by intense competition, while higher commodity prices also pushed up input prices, Market economist Gemma Wallace said.
On the back of higher government spending, India's economy expanded 5.8% in the fourth quarter ended March 2009 compared with a year earlier. That matched a revised gain of the previous quarter, government data announced on Friday, 29 May 2009 showed. Economists were expecting a 5% increase. The GDP grew 6.7% in the year ended March 2009, slowing from 9% in the previous year.
Meanwhile, India's consumer price index rose 8.70% in April 2009 from a year earlier, higher than March's 2009 annual rise of 8.03%, as prices of edible items rose, government data showed on Friday, 29 May 2009. The consumer price index for industrial workers increased by 2 points to 150.
The sentiment on the stock markets remains upbeat following upgrade in earnings of India Inc as thumping victory of the Congress-led United Progressive Alliance (UPA) in the 15th Lok Sabha elections means political stability for the next five years.
Market may see a pre-budget rally on hopes of accelerated economic reforms and pro-reforms announcements. The UPA government's comfortable victory, without the support of the Left parties, has raised expectations that the government may revive disinvestment programme. The Congress party had in its manifesto released before polls promised to go ahead with disinvestment while retaining a majority holding in the state-run companies. Disinvestment programme was earlier put on backburner due to stiff opposition from the Left front.
Meanwhile, Civil Aviation Minister Praful Patel said today, 1 June 2009 the government will consider bringing out an initial public offer for flag carrier Air India and list it on the bourses. However, he did not give any time frame
Investors expect financial sector reforms such as increase in the cap on foreign direct investment in insurance sector to 49%, from 26% at present. Finance Minister Pranab Mukherjee on 26 May 2009 said that a sustained stimulus to economic growth is possible by next round of reforms. He said reviving growth momentum is a top priority for the government adding that fiscal prudence will also be kept in mind.
Mukherjee said the government will stick to fiscal deficit target of 5.5% of GDP in the current financial year that ends on March 2010 (FY 2010). He said the government is committed to fiscal consolidation in 2-3 years. The minister said he would be able to announce the full-budget for FY 2010 by the first week of July 2009 and try to get it approved by 31 July 2009. He said the common man will be the focus of the government policy.
The first session of 15th Lok Sabha began today, 1 June 2009 with the first two days of Parliament kept for newly elected members to take oath followed by election of the Speaker on 3 June 2009. In all, the Parliament session will have seven sittings
Investors will keenly watch President's address to the Lok Sabha on 4 June 2009 which would chart out the road map of the second term of the Manmohan Singh Government.
Firm overseas markets supported the domestic bourses today. European markets surged on stronger commodity prices and growing signs of a global economic recovery. Key benchmark indices in UK, Germany and France were up by between 1.75% and 3.24%
Asian markets extended early gains boosted by encouraging manufacturing data from China. Key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea, and Taiwan were up by between 0.92% and 3.95%
Japan's Nikkei stock average rose 1.63%, after touching a nearly eight-month high, buoyed by shippers, smelters and trading houses.
China's official purchasing managers' index, a key economic indicator, slipped slightly in May 2009, but stayed above the 50 reading indicating manufacturing activity continued to expand for the third consecutive month. The Purchasing Managers Index slipped to 53.1 in May 2009 from 53.5 in April 2009 but held over the expansionary 50 mark, the China Federation of Logistics & Purchasing said.
US Treasury Secretary Timothy Geithner today, 1 June 2009 said that the global recession seemed to be losing force but that it will be critical for the United States and China to institute major economic reforms to put the world on a more sustained footing. Geithner said that a successful transition to a more balanced and stable global economy will require substantial changes to economic policy and financial regulation around the world and especially in the world's largest and third largest economies.
Trading in US index futures showed the Dow could rise 124 points at opening bell on Monday, 1 June 2009. General Motors Corporation and the US government have reportedly finalized plans for the battered company to reorganize, setting the stage for America's largest-ever industrial bankruptcy filing before markets open today, 1 June 2009. Government support for GM is expected to total up to $60 billion. Nearly half of that money has already been extended this year in emergency aid.
Meanwhile, another US automaker Chrysler LLC is nearing the end of a court-supervised restructuring in New York to cut debt and non-performing assets, as well as consummate an alliance with Italy's Fiat SpA.
US markets surged on Friday, 1 June 2009 on encouraging consumer confidence data and a better-than-expected GDP data for the first quarter. The Dow Jones industrial average rose 96.53, or 1.15%, to 8,500.33. The Standard & Poor's 500 index soared 12.31, or 1.36%, to 919.14, and the Nasdaq Composite index was up 22.54, or 1.29%, to 1,774.33.
US GDP decreased at an annual rate of 5.7% in the first quarter of 2009, according to preliminary estimates from the Bureau of Economic Analysis. Although a significant contraction, the fall was smaller than the 6.3% drop in the fourth quarter of last year, and also beat advance estimates which had suggested a decline of 6.1%.
The BSE 30-share Sensex gained 215.38 points, or 1.47%, to 14,840.63, its highest closing since 9 September 2008. The Sensex opened 165.64 points higher at 14,790.89. The Sensex rose 281.56 points at the day's high of 14,906.81 in early trade. At the day's low of 14,658.01, the Sensex 32.76 rose points in morning trade.
The Sensex is up 5193.32 points or 53.83% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 6,680.23 points or 81.86%.
The S&P CNX Nifty advanced 80.95 points, or 1.82%, to 4,529.90, its highest closing since 12 August 2008. Nifty June 2009 futures were at 4535, at a premium of 5.10 points as compared to the spot closing.
BSE clocked a turnover of Rs 8141 crore, lower than Rs 8444.33 crore on Friday, 29 May 2009. Turnover in NSE's futures & options (F&O) segment was Rs 58,484.39 crore, lower than Rs 63,060.58 crore on Friday, 29 May 2009.
The market breadth, indicating the overall health of the market, was strong. On BSE, 2282 shares rose as compared with 557 that declined. A total of 42 shares remained unchanged.
The BSE Mid-Cap index was up 2.92% to 5,204.21 and the BSE Small-Cap index was up 3.51% to 6,196.78. Both these indices outperformed the Sensex
Most sectoral indices on BSE logged gains. The BSE Realty index (up 5.65%), the BSE Consumer Durables index (up 2.68%), the BSE Auto index (up 1.94%), the BSE PSU index (up 1.55%), the BSE Metal index (up 5.32%), the BSE FMCG index (up 2.76%), the BSE Power index (up 2.63%), the BSE IT index (up 3.95%), the BSE TECk index (up 2.27%), outperformed the Sensex.
The BSE Oil & Gas index (up 0.79%), the BSE Capital Goods index (up 0.70%), the BSE Healthcare index (down 0.03%), the BSE Bankex (down 0.85%) and underperfomed the Sensex.
Among the 30-member Sensex pack, 23 gained while the rest slipped. HDFC shot up 5.68%, ITC gained 5.17%, and Tata Power advanced 2.38%
Metal shares advanced on strong domestic demand and firm prices on the London Metal Exchange (LME). JSW Steel (up 2.41%), Steel Authority of India (up 2.11%), Hindalco (up 3.60%), Nalco (up 1.62%), Sesa Goa (up 2.23%), and Hindustan Zinc (up 4.55%), edged higher.
LMEX, a gauge of six metals traded on the LME, rose 2.5% to 2,260.50 on Friday, 29 May 2009
India's largest copper maker by sales Sterlite Industries surged 6.95% to Rs 666 and was the top gainer from the Sensex pack
The world's sixth largest steel maker by sales Tata Steel jumped 6.85% to Rs 434.15 after its unit, Tata Steel UK, won approval from banks to ease conditions on a 3.7 billion pounds loans it took to buy Anglo-Dutch Corus. The announcement was made on Saturday, 30 May 2009.
India's second largest listed cellular services provider by sales Reliance Communications (RCom) surged 4.68% to Rs 320.10 on the company's plans to raise funds through the qualified institutional placement route. The announcement was made after market hours on Friday, 30 May 2009.
RCom will seek shareholders' approval to garner funds from qualified institutional investors, either through a share sale or an issue of a variety of instruments including fully convertible, partly convertible or non-convertible debentures with warrants or any other security. Although the company did not say how much it planned to raise reports suggested it may be around $500 million and will be used to strengthen financial position for a planned participation in the upcoming auction for nationwide 3G and Wi-Max spectrum allocation by the Indian government.
However India's largest cellular services provider by sales Bharti Airtel fell 2.03% to Rs 803, on fears that the merger deal with MTN would lead to dilution in earnings per share. Nevertheless, the stock came off sharply from day's high of Rs 921.
On 25 May 2009, Bharti Airtel said it is in talks to buy 49% of Johannesburg-based MTN, the first step in a potential $23 billion merger. The deal may also see MTN, Africa's largest mobile-phone company, buy 36% of Bharti Airtel
IT shares advanced mirroring gains in American depository receipts (ADR) on Friday, 29 May 2009. India's second largest software services exporter by sales Infosys rose 4.56% after ADR jumped 3.54% rise on Friday, 29 May 2009
India's third largest software services exporter by sales Wipro advanced 4.15% after ADR rose 2.16% on Friday, 29 May 2009. India's largest software services exporter by sales TCS gained 0.61%.
Cement were in action ahead of release of their monthly sales figures for May 2009. ACC (up 6.32%), Ambuja Cements (up 7.10%), Grasim (up 2.33%), UltraTech Cement (up 3.26%), and India Cement (up 2.89%), rose
India's top small car maker by sales Maruti Suzuki gained 1.61% to Rs 1038 after total sales rose 15.7% to 79,872 units in May 2009 over May 2008. The company announced the monthly sales data during trading hours today, 1 June 2009.
Hero Honda Motors rose 2.02% after vehicle sales rose 22.5% to 3.82 lakh units in May 2009 over May 2008. The company announced the monthly sales figure before market hours today, 1 June 2009.
TVS Motor Company surged 3.13% on reporting 5.15% growth in total two-wheeler sales to 1,18,574 units in May 2009 over May 2008. TVS Motor Company's domestic motorcycle sales clocked a 3% growth in May 2009 over May 2008. However, the total motorcycle sales slipped 2.23% to 53,495 units in May 2009 over May 2008. Scooters sales declined 1.94% to 22,486 units in May 2009 over May 2008. The company made this announcement during trading hours today, 1 June 2009.
Tata Motors (up 0.39%), Mahindra & Mahindra (up 5.36%), and Ashok Leyland (up 4.78%), were the other gainers from the auto pack.
India's largest power generation firm by sales NTPC surged 6.13% to Rs 228.65 on reports the company will sign an agreement with Coal India next month for setting up a 4,000-mwgawatt pithead power plant at Brahmani block near Rajmahal in Jharkhand, entailing an investment of over Rs 23,000 crore. Brahmani block had a reserve of 1.1 billion tonne of coal.
India's largest power equipment maker by sales Bharat Heavy Electricals lost 2.39% to Rs 2122.95 after gaining 31.67% in one month to 29 May 2009. It was the top loser from the Sensex pack.
India's largest engineering and construction firm by sales Larsen & Toubro was unchanged at Rs 1405.60 after advancing 59.81% in one month to 29 May 2009
Voltas jumped 21.77% after net profit rose 13.4% to Rs 62.86 crore in Q4 March 2009 over Q4 March 2008. Voltas' net sales surged 51.6% to Rs 1,276.54 crore in Q4 March 2009 over Q4 March 2008. The company announced the results after market hours on Friday, 29 May 2009.
Infrastructure shares gained on hopes the Congress-led UPA government may boost spending on infrastructure sector. Gammon India (up 1.79%), Reliance Infrastructure (up 1.73%), GVK Power & Infrastructure (up 0.99%), GMR Infrastructure (up 6.37%), and IVRCL Infrastructures & Projects (up 1.17%), surged
India largest dam builder by sales Jaiprakash Associates spurted 6.27% to Rs 220.50 on high volume of 78.68 lakh shares ahead of the record date of 12 June 2009 for the proposed merger of four group companies with itself. The company on 15 May 2009 got approval from the Allahabad High Court for merger of Japyee Cement (JCL), Gujarat Anjan Cement (GACL), Jaypee Hotels (JHL) and Jaiprakash Enterprises (JEL) with itself.
JMC Projects India was locked at 5% upper limit at Rs 146.40 after net profit jumped 70.32% to Rs 16.30 crore in Q4 March 2009 over Q4 March 2008. The company's net profit rose 19.82% to Rs 36.76 crore on 44.19% surge in net sales to Rs 1,319.29 crore in the year ended March 2009 over the year ended March 2008.
Realty stocks rose on expectations that stability at the Centre will attract more money from foreign investors into the sector which in turn will boost growth. DLF (up 2.50%), Housing Development & Infrastructure (up 8.79%), Indiabulls Real Estate (up 0.37%), and Unitech (up 15.86%), gained.
In the last six weeks, three realty firms Unitech, DLF and Indiabulls Real Estate, have together raised Rs 8000 crore through qualified institutional placements (QIPs).
Hotel shares gained on speculation the government will push for lower lending rates and tax breaks for all industries that are labor-intensive which includes hotels. Indian Hotels Company (up 16.60%), EIH (up 14.10%), Taj GVK Hotels (up 19.96%), Asian Hotel (up 13.67%), and Hotel Leelaventures (up 21.80%), surged.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) was almost unchanged at Rs 2276.05. The stock moved in a band of Rs 2257 and Rs 2311.45 in choppy trade
India's largest private sector bank by net profit ICICI Bank and a heavyweight in the 30-share BSE Sensex was down 1.98% to Rs 726 on profit booking after surging 55.04% in one month to 29 May 2009. Nevertheless, the stock recovered from day's low of Rs 710.05
India's largest bank by net profit and branch network State Bank of India (SBI) gained 1.12% to Rs 1890. As per reports the bank hopes to earn more profit than the landmark figure of Rs 10,000 crore in the current fiscal
Shares of public sector firms gained on speculation the UPA government may revive disinvestment programme. Shipping Corporation of India (up 8.35%), HMT (up 2.37%), Hindustan Copper (up 4.98%), NMDC (up 2.05%), MMTC (up 2.31%), Central Bank of India (up 1.52%), rose
The Congress party had in its manifesto released before polls promised to go ahead with disinvestment while retaining a majority holding in the state-run companies. Disinvestment programme was earlier put on the back burner due to stiff opposition from the Left front which provided support to the previous government for most part of the five-year term.
India's largest pharma firm by market capitalisation Sun Pharmaceuticals rose 0.85% to Rs 1220 after net profit rose 71.3% to Rs 424.69 crore on 49.8% rise in net sales to Rs 1169.27 crore in Q4 March 2009 over Q4 March 2008. The results were announced on Saturday, 30 May 2009.
Glenmark Pharmaceuticals rose 0.33% after Glenmark Generics Inc. USA, a subsidiary of Glenmark Pharmaceuticals got final approval from US Food and Drug Administration (US FDA) for Hydralazine Hydrochloride tablets in multiple strengths. The drug is used for treating hypertension. The company made this announcement during trading hours today, 1 June 2009.
Opto Circuits India surged 6.94% after an overseas unit of the company received approval from the US drug regulator for Sequel, a next generation pulse oximeters module. The company made this announcement during trading hours today, 1 June 2009.
Page Industries rose 3.47% after ICICI Prudential Discovery Fund acquired 80,000 shares, or 0.71% equity of the company at Rs 450 each on Friday, 29 May 2009.
Unitech topped the turnover chart on BSE with turnover of Rs 376.72 crore followed by Suzlon Energy (Rs 358.45), Reliance Capital (Rs 260.18 crore), HDIL (Rs 241.98 crore) and Reliance Natural Resources (Rs 216.64 crore).
Unitech also led the volume chart on BSE with trades of 4.26 crore shares was followed by Suzlon Energy (3.28 crore shares), Satyam Computer Services (3.18 crore shares), Reliance Natural Resources (2.52 core shares) and Cals Refineries (2.51 crore shares).
Gokul Refoils and Solvent rose 9.01% after the company's board approved a 5-for-1 stock split. The company made this announcement before trading hours today, 1 June 2009.
Market may rise on firm global cues
The market is likely to display a positive trend on the back of increasing investor confidence on economic outlook and positive global cues. Strong investor's appetite for heavyweights and sectoral stocks could see the market to extend its winning streak. However, caution should be maintained as higher bouts of intra-day volatility is likely to persist. Among the local indices, the Nifty could test higher levels in the 4500-4550 range and has a support at 4400. The Sensex on the downside may slip to 14475 and may face resistance at 14775.
Major US indices rose Firday for the second session in a row, with the Dow Jones flared up by 97 points at 8500, the Nasdaq moved up by 23 points to close at 1774.
Indian ADRs had a mixed outing on US bourses. VSNL, Rediff ,Tata Motors, Dr Reddy, and Patni Computers dropped around 1-10% each. While, Infosys gained 3.54% while Wipro, ICICI Bank, HDFC Bank and MTNL were up around 1-2% each.
The Nymex light crude oil for July delivery gained by $1.23 to close at $66.31 a barrel. In the commodity space, the Comex gold for August delivery jumped $17.10 to settle at $980.30 an ounce.
Market seen extending three-day gains on positive global cues
Key benchmark indices are seen extending gains for fourth session mirroring positive global cues. The SGX Nifty futures for June 2009 expiry jumped 71 points in Singapore. However profit booking after the recent sharp rally cannot be ruled out. The BSE Sensex has surged 4977.94 points or 51.59% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 6464.85 points or 79.22%.
The sentiment on the stock market is likely to remain upbeat following upgrade in earnings of India Inc as thumping victory of the Congress-led United Progressive Alliance (UPA) in the 15th Lok Sabha elections means political stability for the next five years.
Market may see a pre-budget rally on hopes of accelerated economic reforms and pro-reforms announcements. The UPA government's comfortable victory, without the support of the Left parties, has raised expectations that the government may revive disinvestment programme. The Congress party had in its manifesto released before polls promised to go ahead with disinvestment while retaining a majority holding in the state-run companies. Disinvestment programme was earlier put on backburner due to stiff opposition from the Left front.
Also the passage of the Bill to amend the Insurance Act, 1938 is likely to be touched upon in the full Budget likely to be announced in the first week of July 2009. 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.
Finance Minister Pranab Mukherjee on 26 May 2009 said that a sustained stimulus to economic growth is possible by next round of reforms. He said reviving growth momentum is a top priority for the government adding that fiscal prudence will also be kept in mind.
Mukherjee said the government will stick to fiscal deficit target of 5.5% of GDP in the current financial year that ends on March 2010 (FY 2010). He said the government is committed to fiscal consolidation in 2-3 years. The minister said he would be able to announce the full-budget for FY 2010 by the first week of July 2009 and try to get it approved by 31 July 2009. He said the common man will be the focus of the government policy.
Meanwhile, the newly elected UPA government will convene the first session of the 15th Lok Sabha from 1 to 9 June 2009. As regards the business of the first Lok Sabha session, the first two days will be reserved for oath of affirmation to the newly elected members. On 3 June 2009, election for the Lok Sabha Speaker would be held, followed by the President's address to both the houses of parliament on 4 June - the date of commencement of Rajya Sabha session. In all, the Parliament session will have seven sittings
Investors will keenly watch President's address to the Lok Sabha on 4 June 2009 which will unveil the new agenda of the government.
Asian markets were trading higher today, 1 June 2009. China's Shanghai Composite surged 2.23% or 58.79 points at 2,691.71, Hong Kong's Hang Seng rose 2.06% or 374.44 points at 18,545.44, Japan's Nikkei gained 0.79% or 75.08 points at 9,597.58, Singapore's Straits Times added 1.61% or 37.60 points at 2,366.68, South Korea's Seoul Composite was up 0.35% or 4.87 points at 1,400.76 and Taiwan's Taiwan Weighted rose 0.84% or 58.17 points at 6,948.61.
US markets gained on Friday, 1 June 2009 on encouraging consumer confidence data and a better than expected GDP figures. The Dow Jones industrial average soared 96.53, or 1.2%, to 8,500.33. The Standard & Poor's 500 index soared 12.31, or 1.4%, to 919.14, while the Nasdaq composite index was up 22.54, or 1.3%, to 1,774.33.
Back home, key benchmark indices rose for the straight third day on Friday, 29 May 2009 as data showing a better-than-expected fourth quarter GDP growth strengthened expectations the economy will grow faster in the fiscal second-half of the year that began on 1 April 2009. Both the Sensex & S&P CNX Nifty today attained their highest closing levels in the last eight and half months.
The BSE 30-share Sensex rose 329.24 points or 2.3% to 14,625.25, its highest closing since 10 September 2008. The S&P CNX Nifty rose 111.85 points or 2.58% to 4,448.95, its highest closing since 9 September 2008.
Stocks surged to 8-month high, extending gains for the twelfth straight week, boosted by strong inflow from foreign funds and positive global cues. Further signs of recovery in domestic and global economy and anticipation of a strong push for economic reforms by the newly elected United Progressive Alliance (UPA) government bolstered the bulls.
The 30-share BSE Sensex gained 738.10 points or 5.31% to 14,625.25, in week ended Friday, 29 May 2009. The broader 50-issue Nifty jumped 210.45 points, or 4.96%, to end the week at 4448.95
As per the provisional figures on the NSE, foreign institutional investors (FIIs) bought shares worth Rs 272.77 crore on Friday, 29 May 2009 while domestic institutional investors bought shares worth Rs 873 crore.
Late rally at Wall Street
The start and end of the week witness solid rally
It was a holiday shortened week that ended on Friday, 29 May, 2009. But indices registered modest gains in course of the week. Trading volume and news flow remained relatively light during the week. News concerning General Motors always remained in the forefront in the course of the week. Treasury auctions were another event that dominated. Other than that, there was mixed set of economic data. The dollar index dropped considerably during the week pushing metal and crude prices substantially higher.
The Dow Jones Industrial Average gained 223 points (2.7%) for the week to end at 8,500.33. Tech - heavy Nasdaq gained 82.32 (4.7%) to end at 1,774.33. S&P 500 gained 32.14 (3.5%) to end at 919.14.
The indices rallied during start of the week after better-than-expected consumer confidence data gave participants some solid evidence that economic conditions may be improving, which brought about broad-based gains for the major indices. The Conference Board in US reported on Tuesday, 26 May, 2009 that reading on U.S. consumer confidence jumped to 54.9 in May from an upwardly revised 40.8 in April as expectations for jobs improved. Market was expecting a reading around 43. Dow rallied by 196 points on that day.
Downside guidance from Monsanto and news that a $27 billion bond exchange offer from General Motors proved unsuccessful led to some early weakness in stocks during the middle of the week.
Stocks moved substantially lower on Wednesday, 27 May, following an auction of 5-year government Notes carrying a 2.3% yield. Though the auction itself was solid, mortgage origination sellers moved to hedge their positions and pressured the long-end of the yield curve. That sent the benchmark 10-year Note more than one point lower, which pushed its yield above 3.7% to a fresh 2009 high.
Economic reports dominated on Thursday, 28 May, 2009. The Commerce Department reported on Thursday, 28 May, 2009 that U.S. new home sales rose 0.3% in April to a seasonally adjusted annual rate of 352,000. But the figure was well below the 365,000 pace expected. In a separate report, the Commerce Department reported that new orders for U.S made capital goods were much stronger than expected in April. Orders for durable goods rose 1.9% in April, pushed higher by new orders for primary metals, machinery and motor vehicles. It marked the largest gain in new orders since December 2007.
In the strained labor market, The Labor Department reported today that the number of new layoffs declined by 13,000 to 623,000 last week. The decline in initial jobless claims was in line with expectations. The four-week average of new claims, which smoothes out distortions in the week-to-week data caused by weather, holidays, strikes and the like, fell by 3,000 to 626,750 in the week ending 23 May. Initial claims for the week ending 16 May were revised up by 5,000 to 636,000.
In the US market on Friday, 29 May, 2009, indices oscillated between red and green for the entire day. But at the end, with the help of late buying, mainly from the financial sector, stocks surged in the final hour and closed at session highs.
The Dow Jones Industrial Average ended higher by 96 points at 8,500.33. The Nasdaq Composite Index, ended higher by 22.5 points at 1,774. S&P 500 ended higher by 12.3 points at 919. More than 1.8 billion shares traded hands on the NYSE on that day, the most in more than one month.
The Commerce Department reported on Friday, 29 May, 2009 that the U.S. economy contracted at a revised 5.7% annual rate in the first quarter, a decline that's smaller than the 6.3% drop in the fourth quarter. Market was expecting a drop of 6.1% in the first quarter.
General Motors dominated the headlines during the week. The company completed several steps on its road to bankruptcy. After agreeing to a restructuring deal with the United Autoworkers, where the union would take a significantly smaller stake in the company and the U.S. government would take a significantly larger one (70%), the company disclosed that it would not consummate its exchange offers as the principal amounts of notes tendered were substantially less than the amount required. But it would allow GM to move forward with bankruptcy. Reports indicate the Obama administration plans to usher the company into bankruptcy during the start of the next week.
Crude oil prices ended May, 2009 with highest monthly gain in a decade. Prices rose substantially higher on Friday, 29 May 2009. Prices rose for the fifth consecutive session as the dollar slid further and also on hopes of quicker than expected global economic recovery. Prices also continued to rise after energy department, earlier during the week, reported unexpected drop in crude inventories for last week. Market was anticipating a buildup in crude inventories. On Friday, crude-oil futures for light sweet crude for June delivery closed at $66.31/barrel (higher by $1.23 or 1.9%). For the week, crude ended higher by 7.5%.
In its latest annual report, EIA reported on international outlook for energy that global oil demand will grow to 91 million barrels a day in 2015 and 107 million barrels a day in 2030. Global oil supply will rise to 106.6 million barrels a day by 2030. The EIA also said natural-gas consumption will increase to 153 trillion cubic feet in 2030. The Energy Information Administration predicted in a newly released report that oil prices will rise to $110 in 2015 and $130 in 2030.
In the currency market on Friday, the U.S. Dollar Index, a gauge of the greenback against six major currencies, slid as much as 1.6%, heading for a 6.1% drop in May. The index lost 1% last month and 2.9% in March.
For the year 2009, Dow is down by 3.1%. The Nasdaq and S&P 500 are up by 12.5% and 1.8% respectively.
Bright month for precious metals
Silver witnesses largest monthly gain in more than two decades
Precious metals ended higher on Friday, 29 May, 2009 at Comex. With the day's gains, bullion metals also ended the month of May substantially higher. Prices ended higher as encouraging economic report increased inflation concerns thereby increasing the appeal of precious metals. The sharp drop in the dollar index also led to shining precious metals.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Friday, Comex Gold for June delivery rose $17.3 (1.8%) to close at $978.8 an ounce on the New York Mercantile Exchange. For the week, gold ended higher by 2%. Year to date, gold prices are higher by 12.4%.
With Friday's gain, gold ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. Before this, gold had suffered losses in prior two months. For the month of April and March, 2009, gold had lost 3.7% and 2.1% respectively. But the metal gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (5.4%) since then.
On Friday, Comex silver futures for July delivery rose 45 cents (2.9%) at $15.61 an ounce. For the week, silver ended higher by 6.2%. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. Year to date, silver has climbed 37% this year. For 2008, silver had lost 24%.
The Commerce Department reported on Friday, 29 May, 2009 that the U.S. economy contracted at a revised 5.7% annual rate in the first quarter, a decline that's smaller than the 6.3% drop in the fourth quarter.
In the currency market on Friday, the U.S. Dollar Index, a gauge of the greenback against six major currencies, slid as much as 1.6%, heading for a 6.1% drop in May. The index lost 1% last month and 2.9% in March.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Crude on a roll
Crude witnesses largest monthly gain in a decade
Crude oil prices ended May, 2009 with highest monthly gain in a decade. Prices rose substantially higher on Friday, 29 May 2009. Prices rose for the fifth consecutive session as the dollar slid further and also on hopes of quicker than expected global economic recovery. Prices also continued to rise after energy department, earlier during the week, reported unexpected drop in crude inventories for last week. Market was anticipating a buildup in crude inventories.
On Friday, crude-oil futures for light sweet crude for June delivery closed at $66.31/barrel (higher by $1.23 or 1.9%). For the week, crude ended higher by 7.5%.
Crude ended the month of May, 2009, higher by 30%. This was the largest monthly gain for crude in almost a decade. Prior to May, crude ended April and March, 2009 higher by 2.9% and 10.9% respectively. It rallied 11.3% in the first quarter. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 54.8% since then. Year to date, in 2009, crude prices are higher by 34.9%.
The Commerce Department reported on Friday, 29 May, 2009 that the U.S. economy contracted at a revised 5.7% annual rate in the first quarter, a decline that's smaller than the 6.3% drop in the fourth quarter. Market was expecting a drop of 6.1% in the first quarter.
In the currency market on Friday, the U.S. Dollar Index, a gauge of the greenback against six major currencies, slid as much as 1.6%, heading for a 6.1% drop in May. The index lost 1% last month and 2.9% in March.
The energy department reported on Thursday, 28 May, 2009 that crude inventories declined by 5.4 million barrels in the week ended 22 May, 2009. Market was expecting stockpiles to show an increase of 1.8 million barrels. U.S. refineries ran at 85.1% of their operable capacity last week, up sharply from 81.8% in the prior week. The EIA also reported that gasoline inventories fell by 600,000 barrels last week. Distillate stockpiles, which include heating oil and diesel, rose 300,000 barrels last week.
During the week, in its latest annual report, EIA reported, on international outlook for energy, that global oil demand will grow to 91 million barrels a day in 2015 and to 107 million barrels a day in 2030. Global oil supply will rise to 106.6 million barrels a day by 2030. The EIA also said natural-gas consumption will increase to 153 trillion cubic feet in 2030. The Energy Information Administration predicted in a newly released report that oil prices will rise to $110 in 2015 and $130 in 2030.
OPEC, in its latest meeting, decided to keep production quotas unchanged, in line with expectations. The cartel, which accounts for about one-third of the world's oil production, decided to leave production levels unchanged at today's meeting in Vienna on Thursday, 28 May, 2009.
Also at the Nymex on Friday, June reformulated gasoline gained 2.05 cents to end at $1.9310 a gallon and June heating oil futures rose 4.05 cents to $1.6419 a gallon. Both contracts expired at the end of trading on Friday.
Natural gas for July delivery fell 12.2 cents to end at $3.835 per million British thermal units on Friday.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
Pre Session Commentary - June 1 2009
Today domestic markets are likely to open positive as the US markets closed in green and the Asian markets have opened with phenomenal gains. The preliminary US GDP data has been revised moderately upward thus strengthening the morale of investors. The market sentiments across the Asian premises are looking very strong and therefore one could anticipate a strong buying trend during the day. However as the day would progress the profit booking pressures may chop some gains.
On Friday, the domestic markets closed positive on the back of encouraging GDP numbers and supportive cues from other markets. After a phenomenal gap up opening, the traders cheered the surge in other Asian markets which was further backed by the northward movement of European markets. Finally the better than expected GDP of 6.7% for the year FY09 pumped the sentiments of traders. The anticipations of deregulation in prices of Oil helped oil marketing companies gain momentum. Sectors like Realty, CG, CD and Auto inclined by 6.76%, 4.13%, 3.55% and 3.41% respectively. On the other hand, Mid cap and Small cap stocks also gained by 2.46% and 3.01% respectively. We expect the markets to be trading positive.
The BSE Sensex closed with a gain of 329.24 points at 14,625.25 and NSE Nifty inclined by 111.85 points at 4,448.95. BSE Mid Caps and Small Caps closed with gains of 121.18 points and 175.13 points at 5,056.74 and 5,986.82 respectively. The BSE Sensex touched intraday high of 14,727.28 and intraday low of 14,319.87.
On Friday, the US Markets closed in green. After a gyrating start the markets managed to close with remarkable gains. Financial stocks were the later movers as the sector started with a loss of 1% however towards the end it closed with a gain of 3%. Diversified metal and mining companies were in the limelight with phenomenal gains of 4.2% and 3.3%.The GDP for the first quarter recorded a drop of 5.7% better than the 6.1% decline that was report in the advance GDP reading. The US light crude oil for July delivery inclined by 1.7% to settle at $66.21 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed high by 96.53 points at 8,500.33, the NASDAQ Composite (RIXF) index inclined by 22.54 points to close at 1,774.33 and the S&P 500 (SPX) gained 12.31 points to close at 919.14.
Indian ADRs ended Positive. In technology sector, Infosys and Wipro closed up by (3.54%) and (2.16%) respectively whereas Satyam declined by (2.75%). In banking sector ICICI Bank and HDFC Bank surged (1.30%) and (2.39%) respectively. In telecommunication sector, MTNL gained (0.47%) whereas Tata Communication plunged by (9.61). However, Sterlite Industries galloped by (4.52%).
Today major stock markets in Asia are trading positive. Hang Seng is up by 430.83 points at 18,601.83. Shanghai Composite is also up by 74.959 points at 2,707.889. However Japan''s Nikkei is trading up by 117.91 points at 9,640.41. Strait Times is also up by 43.46 points at 2,372.54. Seoul Composite is also up by 9.75 points at 1,405.64.
The FIIs on Friday stood as net buyers in equity and sellers in debt. Gross equity purchased stood at Rs 5,870.90 Crore and gross debt purchased stood at Rs 103.40 Crore, while the gross equity sold stood at Rs 3,741.80 Crore and gross debt sold stood at Rs. 2,572.50 Crore. Therefore, the net investment of equity and debt reported were Rs 2,129.10 Crore and Rs (2,469.10) Crore respectively.
On Friday, the partially convertible rupee closed at 47.11/12 per dollar, 1.04% stronger than it previous close at 47.60/62. The rupee gained strength on the phenomenal consecutive surge in local stock markets.
On BSE, total number of shares traded were 68.89 Crore and total turnover stood at Rs 8,444.33 Crore. On NSE, total number of shares traded was 149.58 Crore and total turnover was Rs 27,356.32 Crore.
Top traded volumes on NSE Nifty – Unitech with 126063917 shares, Suzlon Energy with 67799714 shares, Idea Cellular with 42030544 shares, DLF with 26527793 shares, followed by Reliance Petro with 25852072 shares.
On NSE Future and Options, total number of contracts traded in index futures was 598920 with a total turnover of Rs 12,731.64 Crore. Along with this total number of contracts traded in stock futures were 477694 with a total turnover of Rs 26,652.95 Crore. Total numbers of contracts for index options were 984168 with a total turnover of Rs 22,029.79 Crore and total numbers of contracts for stock options were 29901 and notional turnover was Rs 1,646.21 Crore.
Today, Nifty would have a support at 4,498 and resistance at 4,569 and BSE Sensex has support at 14,741 and resistance at 14,915.
Daily News Roundup - June 1 2009
Maruti Suzuki’s car sales in the domestic market increased 8-10% in May 2009. (ET)
Multiplexes resolution is expected before June 12. (BS)
M&M to undertake major revamps of its tractor business. (ET)
Bharti Wal-Mart, the JV between two companies to invest over US$100mn in setting up 15 more such outlets in the next three-four years. (BS)
Coal India to sign an agreement with NTPC for setting up a 4,000-MW pithead power plant at Brahmani block near Rajmahal in Jharkhand. (ET)
IOC, BPCL and HPCL raised the ATF price by an average of Rs108/kl. (BS)
Tata Steel UK lenders agreed to reset the terms and conditions for a £3.7bn loan that was taken at the time of the acquisition of Corus. (ET)
Wockhardt in talks with a number of multinational Pharma companies including Eli Lilly, Roche, Sandoz, Pfizer and Sanofi-Aventis to find a strategic partner for its biosimilar business. (ET)
Jet Airways freezes fleet expansion for now and put off aircraft deliveries for two years. (ET)
Real estate developers may spring up more than a hundred malls spread over 30mn sq ft in the country by end-2010. (DNA)
PNB plans to expand its branch network by 10% in 2009-10. (DNA)
Unitech plans to repay about Rs20bn of its debt and bring it below Rs60bn level by the end of this fiscal. (DNA)
Axiata Group may increase its stake in Idea Cellular through a hostile open offer. (DNA)
Tata Motors plans to lower capital expenditure committed earlier and reduce exposure to vehicle financing. (DNA)
NTPC is looking at acquiring coal assets in Mozambique and Indonesia.
GMR International, wholly-owned subsidiary of GMR Infrastructure, signed an agreement with InterGen NV to acquire 100% ownership stake in Island Power Singapore. (BS)
The board of Bharati Shipyard decides to make an open offer for Great Offshore. (ET)
The government at the Centre plans to raise Rs100bn through stake sales in state-owned units over the next one year. (ET)
Indiabulls Real Estate decides to write off the entire investment in its retail arm. (ET)
SCI enters into an agreement with Geneva-based Mediterranean Shipping Company to run its European service. (BS)
Oman Oil Company to buy a 26% stake in the upcoming refinery at Bina for Rs12bn. (BS)
Aditya Birla Retail, Bharti Enterprises, Reliance Retail, Trent, Mahindra Retail and others to open new stores spread over 5mn square feet. (BS)
Transformers and Rectifiers sets up a facility for manufacturing transformers at Moraiya in Ahmedabad with an investment of Rs1bn. (BS)
Orissa government recommends the prospecting license for Horomoto iron ore mines in favour of Jindal Stainless, which is setting up a 1.6mn tonne per annum integrated stainless steel project at Kalinganagar in Jaipur. (BS)
Hindustan Dorr Oliver is likely to go in for a rights issue. (DNA)
IVRCL Infrastructure to exit non-core operations and remain focused on water-related projects. (DNA)
Anant Raj may raise Rs20bn via QIP route. (DNA)
Tata Power Company plans to add 200 megawatts of capacity in the current fiscal year. (FE)
BOC India not increasing its equity now and is also not considering delisting of its stock. (BL)
RBI to allow SBI to guarantee the recently-concluded Rs42bn non-convertible debenture issue by Tata Motors. (ET)
Mindtree plans to address the healthcare market for technology solutions. (ET)
MNC arms’ delist plans may hit price wall. (ET)
Shopper Stop to invest Rs400mn to roll-out 3-4 stores in the current fiscal. (BS)
Tata Motors aims to sell 4,000 World Trucks in the current financial year. (BL)
Shriram Transport Finance Company is looking to invest Rs40bn for an acquisition. (BS)
SBI plans to add atleast 40mn new deposit customers from the rural area by FY11. (BL)
GDP recorded a growth rate of 5.8% in the fourth quarter of 2008-09. (BS)
Financial sector reform as well as an aggressive perusal of "new avenues of investments" on top of the policy heap, said PM. (ET)
Government may soon relax export curbs on agri products and may also lift the ban on future trading of agri commodities. (ET)
The communications ministry to seek telecom regulator Trai’s approval before going ahead with the new policy, which determine the allocation of additional airwaves to all existing telecom companies. (ET)
Forex reserves rose US$6.4bn to touch US$260.6bn during the week ended May 22 - the highest weekly rise since April 2008. (ET)
Finance minister to start the customary pre-budget consultations with different interest groups on Monday for preparation of the budget, likely to be presented in the first week of July. (DNA)
The government may consider hiking the prices of domestic coal. (DNA)
India’s iron ore exports dropped 12% yoy in March. (ET)
The government may increase the royalty rates on extraction of minerals like copper, iron ore and zinc. (ET)
The government is likely to unveil a Rs11.2bn relief package for indebted coffee growers. (ET)
The government is likely to ease control over the allocation of domestically-produced natural gas from December this year. (ET)
Bears still on summer vacation!
Winter is slumber, spring is birth, and summer is life…
The bulls got a new lease of life this summer with the Sensex up a staggering 80% since the first week of March (28% in May alone). Bears who thought stocks were headed south this summer and took off for a vacation may remain in hibernation for a while.
FIIs are back and so are local funds. And the surge in broader market suggests even the retail players may have taken the plunge. Most global markets are also on a roll on growing risk appetite. At the same time, commodity markets too are witnessing a strong rally, which may not be all that healthy after all. Worries remain over the ballooning fiscal deficit and a possible revival in inflation with so much liquidity sloshing around.
With Asian markets in the green, the start of a new week and a new month may see an extension of Friday’s bounce. Auto and Cement shares will be in focus as their monthly sales numbers are announced. Sentiment may be positive but given the sharp surge in the past three months, locking in some gains is not a bad idea.
General Motors (GM) will file for Chapter 11 bankruptcy protection in New York on Monday.
FIIs were net buyers in the cash segment on Friday at Rs2.73bn while the local institutions too poured in Rs8.7bn. In the F&O segment, the foreign funds were net buyers at Rs7.4bn. On Thursday, FIIs were net buyers at Rs21.29bn in the cash segment.
The current rally may not hold for long given the fact that we are yet to cover some distance before there is a sustained rebound both in India and globally. The Sensex was trading at around 12 P/E in early March. It is now quoting at 20 P/E, which is pretty steep, especially considering the current uncertain times. Though the Q4 GDP was better than expected and Q3 numbers too were revised up, it will take some time for India to return to the desirable growth rate of around 9%. Even the revised Q1 US GDP data is nothing to rejoice about, as the world's largest economy is still in considerable pain. The housing and financial markets there and in other advanced economies may also not recover as fast as many expect them to.
The majority of the world's leading investors do not believe the recent strong performance of stocks and other risky assets is sustainable, according to a report released on Monday. The FTSE All World equities index has surged more than 60% since hitting a low for the year in March. But Barclays Capital has revealed that just 17.5% of the 605 investors interviewed for its quarterly FX investor sentiment survey – including central banks, asset managers, hedge funds and international corporate customers – think risky assets have further to rise.
US stocks ended higher on Friday after a late-session rally pushed the major indexes to their biggest three-month run since 2007.
The Dow Jones Industrial Average rose 97 points, or 1.1%. The broader S&P 500 index gained 12 points, or 1.3%. The Nasdaq Composite index advanced by 12 points, or 1.3%.
Friday's advance capped an upbeat week for Wall Street. The Nasdaq rose 4.6% over the week while the S&P 500 was up 3.4% and the Dow gained 2.5%.
For the month, the Dow jumped 3.8%, while the S&P 500 rose 5.2% and the Nasdaq advanced 3.6%. May's gains mark the first time US stocks have risen for three consecutive months since October 2007.
US stocks seesawed for most of Friday's session but began to move higher in the last hour of trade, with blue-chip stocks like IBM and Coca Cola leading advancers on the Dow.
Rising oil prices have helped lift the US market in recent days. Oil prices have jumped around 30% in May, marking the largest monthly rise since March 1999. Crude closed above $66 a barrel as the dollar fell to a five-month low. The yield on the 10-year Treasury note slid to 3.46% as its price ticked up.
US stocks rose on Thursday after a government debt auction elicited solid demand, tempering fears that borrowing costs would rise. The major gauges all added about 1%.
The government also said that first-quarter GDP fell at a revised annual rate of 5.7%, narrower than the originally reported 6.1%. Economists expected the revision to result in a 5.5% rate of decline.
A measure of business activity in the Midwest surprisingly fell in May. The ISM-Chicago Purchasing Managers Index dropped to 34.9 in May from 40.1 in April, signaling contraction. Economists had expected it to rise to 42.
After the stock market closed on Thursday, Dell reported a drop in sales and earnings. The company said a slowdown in PC sales pressured its bottom line.
Before the opening bell on Friday, luxury retailer Tiffany & Co. reported first-quarter earnings of 20 cents per share, slightly lower than the 21-cent-per-share profit analysts had expected. But the jewelry maker maintained its full-year earnings forecast.
Activist investor William Ackman's quest to overhaul the board of Target fell flat at the retailer's annual shareholder meeting. None of Ackman's candidates for the board won a seat.
Shares of General Motors (GM) fell below $1 for the first time since the Great Depression as the troubled automaker appeared set to enter bankruptcy despite winning key concessions from the United Auto Workers.
Treasury prices rose, with the yield on the benchmark 10-year note slipping to 3.46% from 3.67% on Thursday. The yield on the 10-year note jumped to a six-month high of 3.71% earlier this week, raising fears that higher borrowing costs, particularly mortgage rates, could hinder an economic recovery.
In currency trading, the dollar plummeted against major international currencies. The dollar index, which measures the greenback's performance against a basket of other currencies, sank to a session low of 79.287, its lowest since mid-December.
NYMEX oil for July delivery rose $1.23 to settle at $66.31 a barrel. It was the highest closing price since Nov. 4, when crude settled at $70.53. COMEX gold for August delivery gained $17.30 an ounce to settle at $978.80.
European shares rose on Friday. The pan-European Dow Jones Stoxx 600 index climbed 0.8% to 209.52. Including Friday's move, the index is up 4.9% in May.
The UK's FTSE 100 index climbed 1.4% to 4,449.60, Germany's DAX 30 index rose 0.6% to 4,963.73 and the French CAC-40 index advanced 0.9% to 3,289.03.
It was the second straight day of gains for the Indian markets on Thursday. The upswing was seen despite weak cues from the US and the Asian markets. The Metal, Banking and the PSU stocks were among the top gainers followed by the Capital Goods and the Realty stocks. However, some offloading was seen in the Pharma, IT and FMCG counters.
The Sensex surged 186 points or 1.3% to close at 14,296 after touching a high of 14,377 and a low of 14,078. The index had opened at 14,115 against the previous close of 14,109.
The NSE Nifty gained 61 points or 1.4% to shut shop at 4,336.
Among the BSE Sectoral indices BSE Metal index was the top gainer adding 2.7%, followed by the BSE PSU index up 2.3%, BSE Bankex index up 1.8%, BSE Capital Goods index up 1.7% and BSE Realty index up 1.7%.
Shares of L&T gained by 2.3% to Rs1342 after the company announced its Q4 results with net profit at Rs9.99bn posting 3.3% growth as against Rs9.67bn in the same period last year. The company’s net sales grew 23.6% yoy at Rs104.7bn as against to Rs84.7bn and has one-time loss of Rs1.44bn. The company announced that it would pay dividend of Rs10.50 per share.
Shares of M&M advanced by 2.1% to Rs639 after the company announced its Q4 results with net profit at Rs4.18bn posting a growth of 89% yoy as against Rs2.21bn. Net sales were up 15% at Rs36.2 versus Rs31.4. The company Q4 EPS was at Rs10.81 versus Rs9.02 and also announced that they would pay dividend of Rs10 per share.
SAIL surged by over 6.5% to Rs164. The company’s Q4 net profit dropped 37% yoy at Rs14.9bn as against Rs23.8bn in the same period last year. The company posted revenues of Rs120.6bn as against Rs134.8bn.
After gaining over 700 points in two trading sessions, some cooling off is not ruled out as trader and investors would prefer to book some profits ahead of the weekend. No other immediate catalysts for now besides the GDP numbers tomorrow.
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