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Tuesday, June 02, 2009
Post Session Commentary - June 2 2009
The domestic market closed the session on a mixed note as Indian benchmark index BSE Sensex closed just above the dotted line while NSE Nifty closed marginally lower. Tracking the positive global markets, the Indian benchmark indices opened with decent gains but did not able to sustain at the higher level as the profit booking takes a lead across the selective indices. The weak start of European markets and weakening of Asian markets after initial surge dampened the sentiments of the investors to some extent that led to selling pressure across the certain counters. However, the market made a smart turnaround in the final hours of the session due to some favoring domestic data like the India’s infrastructure sector output jumped 4.3% in April from 2.3% in the same month last year. Moreover, the output has risen 2.7% in the March 2009 fiscal as against 5.9% growth in 2007/08.
The Indian stock market witnessed strong volatility throughout the trading session as the investors takes calculated steps to book further position after four straight day of continuous rally. However the late buying at the lower levels led the market to pare mst of its losses to close almost on a flat note. Moreover, in the global arena, the US Markets closed in green on the back of good economic data. Flurry of economic data pleased the investors bringing broad based buying sentiments that pushed S&P 500 to fresh highs for 2009 and the index also managed to close above 200-day moving average for the first time since December 2007. The personal income for the month of April recorded a surprise growth of 0.5% and on the other hand the personal spending for April declined a better than expected 0.1%. Construction spending for the month of April showed a surprise growth of 0.8% month-over-month. The ISM Manufacturing index for May was also inline with the expectations at 42.8. However, benchmark indices showed volatility during the session with BSE Sensex closed above 14,850 level and NSE Nifty above 4,520 mark. From sectoral front, investors on-loaded position across the sectors led by Consumer Durables, Metals and Auto while Realty, Power and PSU index remained on the sellers radar.
Among the Sensex pack 13 stocks ended in green territory and 17 in red. The market breadth indicating the overall health of the market remained firm as 1,664 stocks closed in positive while 1,130 stocks closed in negative and 56 stocks remained unchanged in BSE.
The BSE Sensex closed up by 34.28 points or 0.23% at 14,874.91 and NSE Nifty closed marginally lower by 4.65 points or 0.10% at 4,525.25. BSE Mid Caps and Small Caps closed with gains of 42.47 and 56.20 points at 5,246.68 and 6,252.98. The BSE Sensex touched intraday high of 14,994.31 and intraday low of 14,608.23.
Gainers from the BSE Sensex pack are Tata Steel (8.24%) followed by HDFC (4.19%), Sterlite Industries (3.87%), Tata Motors (3.31%) and M&M (2.10%).
Losers from the BSE Sensex pack are ACC Ltd (5.83%), Ranbaxy Labs (4.50%), Reliance Infra (4.34%), Tata Power (3.36%), DLF (2.43%) and HDFC bank (2.41%).
On the global markets front the Asian markets which opened before the Indian market, closed mixed. Hang Seng, Strait Times and Seoul Composite closed lower by 2.64%, 0.18% and 0.16% at 18,389.08, 2,375.82 and 1,412.85. While Nikkei and Shanghai Composite closed up by 0.27% and 0.11% at 9,704.31 and 2,724.30.
European markets which opened after the Indian market are trading mixed. In Frankfurt the DAX index is trading up by 0.11% at 5,148.42 and in London FTSE 100 is trading lower by 0.53% at 4,482.49.
The BSE Consumer Durables index increased (2.63%) or 74.62 points to close at 2,906.55. Main gainers are Rajesh Export (9.56%), Blue Star (3.99%), Titan Industries (2.31%) and Gitanjali Gems (1.89%).
The BSE Metal index surged (2.48%) or 283.62 points at 11,740.89. Scrips that mostly gained are Ispat Industries (11.34%), Tata Steel (8.24%), Gujarat NRE (9.68%), Hindustan Zinc (6.68%), Jai Corp (4.99%) and Sterlite Industries (3.87%).
The BSE Auto index also ended higher by (1.37%) or 64.25 points at 4,764.30. Ashok Leyland (7.82%), Tata Motors (3.31%), Bajaj Auto (2.40%), Hero Honda (2.24%) and Mahindra & Mahindra (2.10%) ended in positive territory.
The BSE Realty index fell (2%) or 80.67 points to close at 3,954.92. Losers are Phoenix Mill (3.05%), DLF (2.43%), Omaxe Ltd. (2.26%), Ansal Infra (1.55%) and Parsavnath (1.18%).
The BSE Power slipped (1.65%) or 48.93 points at 2,908.12. Losers are Tata Power (3.36%), Neyiveli Lig (3.27%), GVK Power (2.07%), Torent Power (2.31%) and Suzlon Energy (2.08%).
The BSE IT index gained (0.17%) or 5.37 points to close at 3,121.34. Gainers are Rolta Ind (11.42%), Tech Mahindra (7.09%), Patni Computer (4.99%), NIIT Ltd. (3.18%) and HCL Technologies (3.87%).
The BSE Bankex decreased (0.31%) or 25.18 points at 8,163.03. Losers are Bank of India (4.55%), Indus Ind Bank (4.05%), Kotak Bank (2.95%), Oriental Bank (2.88%), PNB (2.55%) and HDFC Bank (2.41%).
Punjab National Bank fell 2.55%. The Bank will be raising Upper Tier II Bonds as PNB Upper Tier II Bond Issue Series IX through an issue size of Rs 500 crore. The proposed date of opening is June 04, 2009 and proposed date of closing is June 04, 2009.
Hindustan Petroleum Corporation Ltd (HPCL) slipped 3.12%. The company has posted a net profit of Rs 51040.40 million for the quarter ended March 31, 2009 as compared to Rs 3845.10 million for the quarter ended March 31, 2008. Total Income has decreased from Rs 317794.90 million for the quarter ended March 31, 2008 to Rs 255804.60 million for the quarter ended March 31, 2009.
Ambuja Cements Ltd galloped 2.40% after cement shipments rose 8.26% to 16.38 lakh tons in May 2009 over May 2008.
Hero Honda Motors Ltd gained 2.24% to Rs. 1,397.30 after vehicle sales rose 22.5% to 3.82 lakh units in May 2009 over May 2008.
Shree Cement Ltd spurted 1.52% after cement shipments surged 32.19% to Rs 7.35 lakh tons in May 2009 over May 2008.
Sensex measly up
Starting firm on strong global cues, the Sensex rallied sharply in morning trades touching an intra-day high of 14994. Consumer durable and metal stocks moved up sharply, whereas realty and power stocks remained subdued. The index however saw profit booking towards mid of the day and entered negative territory to touch the day's low of 14608. At one point of time, the market appeared to be heading towards a negative close on the back of strong bout of selling. But the market recovered on buying in few pivotal stocks and the Sensex closed at 14875, up 34 points. The 50-stock index, Nifty, ended the session at 4525, down 5 points.
The market breadth, the number of advancing shares to declining ones, was positive. Of the 2,850 stocks traded on the BSE, 1,664 stocks advanced, whereas 1,130 stocks declined. Fifty six stocks ended unchanged. Seven of the 13 sectoral indices on the BSE remained above their yesterday’s close. BSE CD gained 2.63% followed by BSE Metal (up 2.48%), BSE Auto (up 1.37%) and BSE CG (capital goods; up 1.37%). However, BSE Realty (down 2%), BSE Power, BSE PSU, BSE Bankex, BSE Teck and BSE Oil & Gas closed with marginal losses.
Among the Sensex stocks, Tata Steel was the leading gainer, soaring 8.24% at Rs474.05 for the day. HDFC advanced 4.19% at Rs2,394.95, Sterlite Industries jumped 3.87% at Rs690.50, Tata Motors shot up by 3.31% at Rs349.15, Mahindra & Mahindra added 2.10% at Rs725.40, while State Bank of India, Grasim Industries, ICICI Bank, Larsen & Toubro and Sun Pharmaceutical Industries closed with marginal gains. Among laggards, ACC tumbled 5.83% at Rs784.50, Ranbaxy Laboratories shed 4.50% at Rs262.25 and Reliance infrastructure declined by 4.34% at Rs1244.45. Tata Power, DLF and National Thermal Power Corporation lost 1-3% each.
Over 6.85 crore shares of Satyam Computer Services changed hands on the BSE followed by Essar Oil (5.78 crore shares), Ispat Industries (4.68 crore shares), Unitech (3.25 crore shares) and IFCI (3.23 crore shares).
BSE Bulk Deals to Watch - June 2 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
2/6/2009 521070 ALOK INDUSTR NIRVAN HOLDINGS PVT. LTD B 2585000 23.27
2/6/2009 521070 ALOK INDUSTR SONATA INVESTMENTS LTD S 3000000 23.07
2/6/2009 530715 ALPS INDUST BEAUMARIS INVESTMENTS LIMITED S 285000 13.65
2/6/2009 512149 AVANCE TECHN CHANDRAKANTBSHAH B 35025 20.16
2/6/2009 531733 BAFNA SPINNI SURSHING GOVINDBHAI PARMAR B 200000 2.46
2/6/2009 531733 BAFNA SPINNI PUKHRAJHIRACHANDBAFNA S 1030000 2.45
2/6/2009 530809 BNR UDYOG LT CHETAN RATHI B 60000 7.50
2/6/2009 530809 BNR UDYOG LT B N RATHI SECURITIES LIMITED S 60000 7.50
2/6/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD B 376069 6.30
2/6/2009 531682 CAT TECHNOL JMP SECURITIES PVT LTD S 230000 6.25
2/6/2009 505923 CEEKAY DIAKI ISF SECURITIES LIMITED B 20312 35.96
2/6/2009 531337 CHAN GUIDE I MANOJ HIRACHAND MOTTA B 50000 19.90
2/6/2009 531337 CHAN GUIDE I VIJAYKAPURCHANDSHAH S 50000 19.90
2/6/2009 531270 DAZZEL CONFI TAPANKUMAR C JOGATAR HUF B 50000 7.34
2/6/2009 531270 DAZZEL CONFI PARESHDHIRAJLALSHAH S 35342 7.34
2/6/2009 511636 DJS STOCK SH RADHESHYAM CHOUDHURYRADHESHYAM CHOUDHURY S 31800 26.70
2/6/2009 500134 ESSAR OIL LTD. CITI GROUP GLOBAL MARKETS MAURITIUS PVT. LTD B 12453327 150.00
2/6/2009 500134 ESSAR OIL LTD. MATTERHORN VENTURES S 30000000 153.35
2/6/2009 505790 FAG BEARING INDIA PRIMA FUND S 103931 372.07
2/6/2009 523277 G V FILMS LT JMP SECURITIES PVT LTD S 2137102 2.84
2/6/2009 532857 GLORY POLY HANURANG VINIMAY PVT LTD S 88655 27.08
2/6/2009 504701 GONTERM PEIP STATE BANK OF INDIA S 100000 27.09
2/6/2009 514034 JBF.IND.LTD VAIDICRE SOURCES PRIVATE LIMITED B 481000 67.65
2/6/2009 514034 JBF.IND.LTD SPARC PESTI CHEM LIMITED S 481000 67.65
2/6/2009 532642 JINDAL SOUTH QUANTUM ENDOWMENT FUND N V S 77000 575.38
2/6/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 41801 29.85
2/6/2009 516078 JUMBO BAG LT SEEMAHEMANDRAAGARWAL S 50000 29.78
2/6/2009 524826 JUPITER BIOS FAIRDEAL INFIN SERVICES PVT. LTD. B 110145 78.58
2/6/2009 524826 JUPITER BIOS DYNAMIC STOCK BROKING INDIA PVT LTD B 109883 81.77
2/6/2009 524826 JUPITER BIOS FAIRDEAL INFIN SERVICES PVT. LTD. S 104145 76.54
2/6/2009 524826 JUPITER BIOS ABN AMRO BANK NV S 500000 78.38
2/6/2009 524826 JUPITER BIOS DYNAMIC STOCK BROKING INDIA PVT LTD S 85883 81.06
2/6/2009 524826 JUPITER BIOS HSBC BANK (MAURITIUS) LIMITED S 331698 76.37
2/6/2009 523876 JYOTI OVERSE NAROTTAM DAS SOMANI S 25177 2.69
2/6/2009 532081 K SERA SERA OUDH FINANCE & INVESTMENT PVT LTD B 640301 15.57
2/6/2009 532081 K SERA SERA S V ENTERPRISES B 1756636 15.42
2/6/2009 532081 K SERA SERA S V ENTERPRISES S 1756636 15.77
2/6/2009 532283 KASHYAP TEC JMP SECURITIES PVT LTD B 7511711 1.33
2/6/2009 532283 KASHYAP TEC MAHESH KUMAR & SONS HUF B 3011775 1.29
2/6/2009 532283 KASHYAP TEC JMP SECURITIES PVT LTD S 8512144 1.33
2/6/2009 532283 KASHYAP TEC MAHESH KUMAR & SONS HUF S 3081775 1.30
2/6/2009 590041 KAVERI TELE IMAGE EVENTURES LTD. S 52751 56.95
2/6/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 59505 7.49
2/6/2009 530255 KAY POW PAP SUNDERDASSAGARWAL B 104599 7.40
2/6/2009 530255 KAY POW PAP B.S.KHANDELWAL B 53300 7.05
2/6/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 56240 7.60
2/6/2009 530255 KAY POW PAP KAY CHANDRA IRON ENGINEERING WORKS PRIVATE LIMITED S 200000 7.01
2/6/2009 530255 KAY POW PAP SUNDERDASSAGARWAL S 106799 7.24
2/6/2009 519570 LAKSHMI OVER COPTHALL MAURITIUS INVESTMENT LIMITED S 497521 94.60
2/6/2009 509048 LANCOR HOLDS GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD S 217222 36.38
2/6/2009 500256 LOK HOUSI CO SPOT LIGHT SECURITIES PRIVATE LIMITED S 300000 38.25
2/6/2009 511551 NETWO ST BRO SALASAR STOCK BROKING LIMITED B 91071 48.34
2/6/2009 511551 NETWO ST BRO TRINITY CAPITAL S 72874 48.50
2/6/2009 532722 NITCO LTD ALBULA INVESTMENT FUND LTD B 169945 61.70
2/6/2009 590057 NORTHGATE TE Naman Securities & Finance Pvt. Ltd. B 314072 49.09
2/6/2009 590057 NORTHGATE TE JMP SECURITIES PVT LTD B 471796 48.13
2/6/2009 590057 NORTHGATE TE BP FINTRADE PRIVATE LIMITED B 217268 49.16
2/6/2009 590057 NORTHGATE TE Naman Securities & Finance Pvt. Ltd. S 411368 48.94
2/6/2009 590057 NORTHGATE TE JMP SECURITIES PVT LTD S 362494 49.13
2/6/2009 590057 NORTHGATE TE BP FINTRADE PRIVATE LIMITED S 206257 49.00
2/6/2009 523483 PACIFIC INDU WITHAL COMMERCIAL PVT LTD B 13000 264.25
2/6/2009 523483 PACIFIC INDU ASHOKA FINSTOCK LTD B 13000 255.97
2/6/2009 523483 PACIFIC INDU ASHOKA FINSTOCK LTD S 13113 264.25
2/6/2009 531769 PFL INFOTECH MEHERDADKERMANI S 31000 3.59
2/6/2009 532675 PRITHVI INFO A.A.DOSHI SHARE & STOCK BROKERS LTD B 128649 76.04
2/6/2009 532675 PRITHVI INFO A.A.DOSHI SHARE & STOCK BROKERS LTD S 128649 76.03
2/6/2009 509839 PUNJAB WOOLC DEEPINDERSINGHPOONIAN B 59853 7.13
2/6/2009 509839 PUNJAB WOOLC IFCI LTD S 59000 7.00
2/6/2009 524037 RAMA PHOS LT HI TECH STRUCTURES PVT LTD B 28440 14.83
2/6/2009 590077 RANKLIN SOLU V MANIKYALA RAO B 36484 29.60
2/6/2009 513558 REAL STRIP L SHANTILALSHETH S 25025 50.00
2/6/2009 500366 ROLTA IND GENUINE STOCK BROKERS PVT. LTD. B 908260 139.39
2/6/2009 500366 ROLTA IND MORGAN STANLEY MAURITIUS COMPANY LIMITED B 1100681 138.52
2/6/2009 500366 ROLTA IND GENUINE STOCK BROKERS PVT. LTD. S 908260 139.50
2/6/2009 526753 ROSELABS LTD NIRMALADEVITRILOKCHANDAGRAWAL S 94199 10.27
2/6/2009 524446 SABE ORG GUJ CLEARWATER CAPITAL PARTNERS (CYPRUS) LIMITED S 150250 23.12
2/6/2009 530073 SANGHVI MOV KOTAK MAHINDRA (U.K.)LTD. A/C MONSOON INDIA INFLECTION FUND B 883064 157.25
2/6/2009 530073 SANGHVI MOV TRIPLE M INVESTMENTS LIMITED S 936226 157.87
2/6/2009 531898 SANGUINE MD NOVAIDJAVEEDMERCHANT B 100000 3.79
2/6/2009 531898 SANGUINE MD DHIRAJLAL V SANGHVI HUF S 250000 3.78
2/6/2009 531898 SANGUINE MD DWARKESH RESTAURANT PVT LTD S 250000 3.79
2/6/2009 531898 SANGUINE MD HIMANSHU AGRAWAL S 88890 3.58
2/6/2009 500376 SATYAM COMP TRANSGLOBAL SECURITIES LTD. B 6211098 61.77
2/6/2009 500376 SATYAM COMP TRANSGLOBAL SECURITIES LTD. S 6211098 61.84
2/6/2009 512105 SHREENATH BEENA DEVI KANDA B 1500 65.00
2/6/2009 512105 SHREENATH BRIJ MOHAN KANDA B 1500 65.00
2/6/2009 512105 SHREENATH KRISHNA KUMARKEDIA B 1500 65.00
2/6/2009 512105 SHREENATH GEETAKEDIA B 1500 65.00
2/6/2009 512105 SHREENATH SARIKABANSAL B 1500 65.60
2/6/2009 512105 SHREENATH SEEMABANSAL B 1500 65.60
2/6/2009 512105 SHREENATH PRIYANKABANSAL B 1500 65.60
2/6/2009 512105 SHREENATH OMBANSAL B 1500 65.60
2/6/2009 512105 SHREENATH S K INVESTMENTS S 10600 65.32
2/6/2009 512105 SHREENATH ASHWIN C JAIN (HUF) S 1500 65.60
2/6/2009 512105 SHREENATH SALONIMITTAL S 2000 65.30
2/6/2009 512105 SHREENATH PREETIDHINGRA S 2000 65.30
2/6/2009 512105 SHREENATH VIPULDHINGRA S 2000 65.30
2/6/2009 526133 SUPERTEX IND PATEL NITABEN SHAILESHBHAI S 50000 49.11
2/6/2009 532765 USHER AGRO MAVI INVESTMENT FUND LTD. S 200000 30.84
2/6/2009 532765 USHER AGRO OODNAP AGROTECH LIMITED S 692117 31.06
NSE Bulk Deal Watch - June 2 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
02-JUN-2009,ABAN,Aban Offshore Ltd.,WARD FERRY MGMT LTD A/C WF ASIA FUND LIMITED,BUY,268000,949.75,-
02-JUN-2009,ADLABSFILM,Adlabs Films Limited,A TO Z STOCK TRADE PRIVATE LIMITED,BUY,419387,379.46,-
02-JUN-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,3658151,23.53,-
02-JUN-2009,BARTRONICS,Bartronics India Limited,MANISH VRAJLAL SARVAIYA,BUY,145770,139.31,-
02-JUN-2009,ESCORTS,Escorts India Ltd.,NIRSHILP SECURITIES PVT. LTD.,BUY,177821,77.31,-
02-JUN-2009,ESCORTS,Escorts India Ltd.,TRANSGLOBAL SECURITIES LTD.,BUY,608430,77.16,-
02-JUN-2009,EVINIX,Evinix Accessories Limite,HI-GROWTH CORPORATE SERVICES PVT. LTD.,BUY,856690,3.87,-
02-JUN-2009,GSSAMERICA,GSS America Infotech Limi,NAGARJUNVALLURIPALLI,BUY,18000,181.05,-
02-JUN-2009,IFCI,IFCI Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,3996272,51.49,-
02-JUN-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,3890866,51.43,-
02-JUN-2009,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,BUY,4830912,51.95,-
02-JUN-2009,IFCI,IFCI Ltd.,JAYPEE CAPITAL SERVICES LTD.,BUY,4702394,51.37,-
02-JUN-2009,IFCI,IFCI Ltd.,NIRSHILP SECURITIES PVT. LTD.,BUY,3712422,51.71,-
02-JUN-2009,INDOWIND,Indowind Energy Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,264098,40.82,-
02-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,13502289,25.10,-
02-JUN-2009,KSERAPRO,K Sera Sera Productions L,OUDH FINANCE & INVESTMENT PVT LTD,BUY,648173,15.20,-
02-JUN-2009,LITL,Lanco Infratech Limited,TOP MANAGERS PACIFIC ALPHA FUND 2,BUY,1130058,366.92,-
02-JUN-2009,NORTHGATE,Northgate Technologies Li,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,242170,47.94,-
02-JUN-2009,PRAENG,Prajay Engineers Syndicat,BP FINTRADE PRIVATE LIMITED,BUY,220329,43.67,-
02-JUN-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,BUY,137219,1182.83,-
02-JUN-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,87834,1164.42,-
02-JUN-2009,RIIL,Reliance Indl Infra Ltd,PRB SECURITIES PRIVATE LTD.,BUY,98457,1188.51,-
02-JUN-2009,ROLTA,Rolta India Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,824880,139.63,-
02-JUN-2009,ROLTA,Rolta India Ltd.,GENUINE STOCK BROKERS PVT LTD,BUY,1192970,139.95,-
02-JUN-2009,ROLTA,Rolta India Ltd.,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,2915000,138.50,-
02-JUN-2009,SASKEN,Sasken Commu Techno Ltd,MANISH VRAJLAL SARVAIYA,BUY,357603,113.38,-
02-JUN-2009,SATYAMCOMP,Satyam Computers Ltd,OM INVESTMENTS,BUY,6415254,62.15,-
02-JUN-2009,SATYAMCOMP,Satyam Computers Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,5873887,61.87,-
02-JUN-2009,SELMCL,SEL Manufacturing Company,KANUDIA CAPITAL & MANAGEMENT SERVICES PVT. LTD.,BUY,93127,85.66,-
02-JUN-2009,VENKEYS,Venky's (India) Limited,KOOKMEN SECURITIES P LTD,BUY,100,141.65,-
02-JUN-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1399059,22.74,-
02-JUN-2009,ADLABSFILM,Adlabs Films Limited,A TO Z STOCK TRADE PRIVATE LIMITED,SELL,419387,380.21,-
02-JUN-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,3658258,23.53,-
02-JUN-2009,ALPSINDUS,Alps Industries Ltd.,BEAUMARIS INVESTMENTS LIMITED,SELL,315000,13.80,-
02-JUN-2009,BARTRONICS,Bartronics India Limited,MANISH VRAJLAL SARVAIYA,SELL,145770,141.30,-
02-JUN-2009,CLASSIC,Classic Diamonds (India),HSBC BANK (MAURITIUS) LIMITED,SELL,286194,17.54,-
02-JUN-2009,ESCORTS,Escorts India Ltd.,NIRSHILP SECURITIES PVT. LTD.,SELL,475421,77.08,-
02-JUN-2009,ESCORTS,Escorts India Ltd.,TRANSGLOBAL SECURITIES LTD.,SELL,650551,77.09,-
02-JUN-2009,EVINIX,Evinix Accessories Limite,HI-GROWTH CORPORATE SERVICES PVT. LTD.,SELL,868493,3.88,-
02-JUN-2009,EVINIX,Evinix Accessories Limite,LEAPFROG ENTERPRISES P,SELL,600000,3.69,-
02-JUN-2009,GSSAMERICA,GSS America Infotech Limi,NAGARJUNVALLURIPALLI,SELL,68765,174.89,-
02-JUN-2009,IFCI,IFCI Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,3932732,51.63,-
02-JUN-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,3875106,51.55,-
02-JUN-2009,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,SELL,4830928,51.96,-
02-JUN-2009,IFCI,IFCI Ltd.,JAYPEE CAPITAL SERVICES LTD.,SELL,4702394,51.47,-
02-JUN-2009,IFCI,IFCI Ltd.,NIRSHILP SECURITIES PVT. LTD.,SELL,371546,51.60,-
02-JUN-2009,INDOWIND,Indowind Energy Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,264098,40.94,-
02-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,14355417,25.19,-
02-JUN-2009,JINDALSWHL,Jindal SouthWest Hold Ltd,Quantum Fund N.V.,SELL,94113,583.65,-
02-JUN-2009,LAKSHMIEFL,Lakshmi Energy and Foods,Copthall Mauritius Investment Ltd,SELL,555000,94.48,-
02-JUN-2009,NILKAMAL,Nilkamal Limited,ARISAIG INDIA FUND LTD,SELL,77000,88.83,-
02-JUN-2009,NORTHGATE,Northgate Technologies Li,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,321925,48.70,-
02-JUN-2009,NUCLEUS,Nucleus Software Exports,Copthall Mauritius Investment Ltd,SELL,317168,92.15,-
02-JUN-2009,PRAENG,Prajay Engineers Syndicat,BP FINTRADE PRIVATE LIMITED,SELL,211283,43.58,-
02-JUN-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,SELL,137219,1183.69,-
02-JUN-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,87834,1164.28,-
02-JUN-2009,RIIL,Reliance Indl Infra Ltd,PRB SECURITIES PRIVATE LTD.,SELL,90415,1185.36,-
02-JUN-2009,ROLTA,Rolta India Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,824880,139.44,-
02-JUN-2009,ROLTA,Rolta India Ltd.,GENUINE STOCK BROKERS PVT LTD,SELL,1192970,139.79,-
02-JUN-2009,SASKEN,Sasken Commu Techno Ltd,MANISH VRAJLAL SARVAIYA,SELL,357603,113.89,-
02-JUN-2009,SATYAMCOMP,Satyam Computers Ltd,OM INVESTMENTS,SELL,6415254,62.19,-
02-JUN-2009,SATYAMCOMP,Satyam Computers Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,5873897,61.88,-
02-JUN-2009,SELMCL,SEL Manufacturing Company,KANUDIA CAPITAL & MANAGEMENT SERVICES PVT. LTD.,SELL,93127,84.84,-
02-JUN-2009,SELMCL,SEL Manufacturing Company,MAVI INVESTMENT FUND LTD.,SELL,100000,83.76,-
02-JUN-2009,VENKEYS,Venky's (India) Limited,KOOKMEN SECURITIES P LTD,SELL,50192,149.62,-
02-JUN-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1389059,22.86,-
02-JUN-2009,XLTL,XL Telecom Limited,JM MUTUAL FUND. A/C CONTRA FUND,SELL,100000,63.75,-
Turnover rises
SBI June 2009 futures at discount
Nifty June 2009 futures were at 4524.30, at a discount of 0.95 points as compared to the spot closing of 4525.25. Turnover in NSE's futures & options (F&O) segment surged to Rs 63,624.63 crore from Rs 58,484.39 crore on Monday, 1 June 2009.
State Bank of India (SBI) June 2009 futures at discount at 1876.90 compared to the spot closing of 1906.90.
Housing Development & Infrastructure June 2009 futures were at premium at 306.80 compared to the spot closing of 305.65.
IFCI June 2009 futures were near spot price at 53.30 compared to the spot closing of 53.
In the cash market, the S&P CNX Nifty lost 4.65 points or 0.10% at 4,525.25.
Tata Steel spurts as Sensex extends gains for the fifth day in a row
Key benchmark indices saw divergent trend with the BSE Sensex logging small gains and Nifty ending slightly lower in what was a highly choppy trading day. The BSE Sensex extended gains for the fifth straight day as stocks staged a comeback in late trade after an early slump caused by profit booking, weak European markets and on Asian markets turning negative after early gains. Index heavyweights Reliance Industries and ICICI Bank played a lead role in the recovery in the key benchmark indices from lower level. Turnover on BSE's cash segment surged to Rs 9,438 crore as compared with Rs 8,177.61 crore on Monday, 1 June 2009.
The BSE 30-share Sensex rose 34.28 points, or 0.23%, recovering 266.68 points from the day's low but off 119.31 points from the day's high.
Volatility was high. Profit taking pulled the market off the higher level after an initial surge that took the barometer index BSE Sensex within striking distance of the psychological 15,000 level. The market slipped into the red in early trade. The market cut losses after the latest data showed India's infrastructure sector output grew 4.3% in April 2009 from a year earlier. Weak European markets pulled the Sensex to intraday low in early afternoon trade. The market cut losses later. The BSE Sensex moved into green from red in choppy late trade.
The Sensex is up 5227.60 points or 54.18% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 6714.51 points or 82.28%.
But a glut in share shares will soak liquidity from the secondary market and cap upside on the bourses in the medium term. Indian companies or their founders have collected $3 billion over the past three weeks, either by transferring existing stock or selling new shares, and more local companies plan to raise at least four times that number, Credit Suisse Group AG said in a note to clients on 25 May 2009. According to Goldman Sachs Group, Indian companies may raise $4 billion to $6 billion from initial public offerings in the 12 months ending 31 March 2009 and another $5 billion to $7 billion through share placements over the next two to three months.
Nevertheless, there are reasons to believe that the recent strong rally may continue in the near term. For one, equity analysts are raising earnings forecasts of India Inc on hopes that the new government will focus on infrastructure sector and push economic reforms to boost growth.
The market may see a pre-budget rally over the next one month 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.
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 newly elected UPA government convened the first session of the 15th Lok Sabha on Monday, 1 June 2009. The session will last till 9 June 2009. As regards the business of the first Lok Sabha session, the first two days are 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. On Monday, 1 June 2009, Civil Aviation Minister Praful Patel said 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
Recent data has reinforced expectations that the economy is recovering. India's infrastructure sector output grew 4.3% in April from a year earlier, government data showed on Tuesday. Output had risen 2.3% in the same month last year, and climbed 2.7% in the fiscal year ended March 2009 compared with 5.9% growth in 2007/08. The infrastructure sector accounts for 26.7% of India's industrial output.
Data during trading hours on Monday 1 June 2009 showed that 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
The latest data showed cement sales surged in May 2009 even as auto sales data depicted a mixed picture. Aditya Birla Group's cement shipments 19.5% to 3.18 million tonnes in May 2009 over May 2008. The shipments of the country's third-largest cement maker Ambuja Cements surged 8.3% while Shree Cement witnessed a 32.1% growth during the month.
Car market leader Maruti Suzuki India sold a total of 79,872 vehicles in May 2009, up 15.6% year-on-year (yoy). This includes 9,087 units for export, up 87.1%. M&M recorded an almost flat growth in the total volume for the month of May 2009 at 30,366 units (30,123). Its auto Segment reported an 18.3% yoy decline to 16,866 whereas the tractor segment reported a 42.6% yoy jump in volume (including sales figures of Punjab Tractors).
Tata Motors' domestic sales for the month of May 2009 were 38,392 units, an 11% decline yoy. However, they were 6% higher compared to the 36,257 units sold in the previous month (April 2009). The company's sales of commercial vehicles in the domestic market, in May 2009, were 23,004 units, a 3% decline yoy.
In the two-wheelers segment, Hero Honda clocked a robust 22.5% yoy growth in May 2009 to 382,678 units (312,317). TVS Motors recorded a 5.2% yoy growth in May 2009 to 118,574 (112,770). Its export volumes declined 20.9% yoy during the month to 11,135, while domestic volumes grew by 7% yoy.
Two-wheeler maker Bajaj Auto on Tuesday reported an 8.13% fall in motorcycle sales in May 2009 at 1,65,049 units as against 1,79,649 units in the same month last year. Total two-wheeler sales during the month stood at 1,65,697, an 8.42% decrease over the same month last year.
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.
Foreign funds are aggressively buying Indian stocks. Their inflow in 2009 totaled Rs 21,937.30 crore (till 1 June 2009).
European markets were trading lower today, 2 June 2009 as investors resorted to profit taking following a recent sharp surge. Key benchmark indices in UK, France and Germany were down by between 0.02% and 0.51%.
Stocks in Hong Kong, Taiwan, South Korea and Singapore were down by between 0.07% and 2.65% on profit taking after recent strong gains. Yet, select Asian markets were trading higher as US manufacturing data reinforced hopes that demand will stabilise, while automakers such as Toyota Motor Co and Honda Motor Co climbed after General Motor's bankruptcy filing removed some uncertainty from the market. Key benchmark indices in China and Japan rose 0.11% and 0.27% respectively
Trading in US index futures showed the Dow could rise 17 points at the opening bell on Tuesday, 2 June 2009.
US markets rallied on Monday, 1 June 2009 despite General Motors filing for bankruptcy, as strong manufacturing and construction reports raised hopes of a global economic recovery. The Dow Jones Industrial Average jumped 221.11 points, or 2.6%, to 8,721.44. The Standard & Poor's 500 Index gained 23.73 points, or 2.58%, to 942.87 and the Nasdaq Composite index rose 54.35 points, or 3.06%, to 1,828.68.
The Institute for Supply Management (ISM) manufacturing index rose to 42.8 in May 2009 from 40.1 in March 2009. Construction spending also jumped 0.8% in April 2009, doubling the 0.4% increase seen in March 2009.
GM filed for bankruptcy on Monday, 1 June 2009 after years of taking heavy losses, becoming the largest-ever US manufacturer to seek court protection. The US government will extend $50 billion of loan to the automaker and will convert it into a 60% stake in the reorganized company, according to a filing in US Bankruptcy Court in New York.
The BSE 30-share Sensex rose 34.28 points, or 0.23%, to 14,874.91, its highest closing since 9 September 2008. The Sensex opened 101.58 points higher at 14,942.21. The Sensex rose 153.59 points at the day's high of 14,994.22 in early trade. At the day's low of 14,608.23, the Sensex lost 232.40 points in afternoon trade.
The BSE Sensex has gained 1285.68 points or 9.46% in five trading days from 13589.23 on 26 May 2009 to 14,874.91.
The S&P CNX Nifty was down 4.65 points, or 0.10%, to 4525.25. The Nifty struck an intra-day high of 4586.40, its highest level since 12 August 2008. Nifty June 2009 futures were at 4524.30, at a discount of 0.95 points as compared to the spot closing.
Turnover in NSE's futures & options (F&O) segment surged to Rs 63,624.63 crore from Rs 58,484.39 crore on Monday, 1 June 2009.
The market breadth, indicating the overall health of the market, was positive. The breadth gyrated between positive and negative zone during the day. On BSE, 1699 shares advanced as compared with 1128 that declined. A total of 52 shares remained unchanged.
The BSE Mid-Cap index was up 0.82% to 5,246.68 and the BSE Small-Cap index was up 0.91% to 6,252.98. Both these indices outperformed the Sensex
BSE clocked a turnover of Rs 9438 crore as compared with Rs 7040 crore by 14:25 IST. The turnover was boosted by 3 massive bulk deals of 1 crore shares each in Essar Oil counter in opening trade. Essar Oil was the top traded counter on BSE with turnover of Rs 987.15 crore.
Other turnover toppers were Unitech (Rs 300.21 crore), DLF (Rs 289.14 crore), Tata Steel (Rs 271.04 crore) and HDIL (Rs 221.92 crore).
Sectoral indices on BSE displayed mixed trend. The BSE Consumer Durables index (up 2.63%), the BSE Auto index (up 1.37%), the BSE Metal index (up 2.48%), the BSE Capital Goods index (up 0.31%), outperformed the Sensex.
The BSE FMCG index (up 0.15%), the BSE Power index (down 1.65%), the BSE IT index (up 0.17%), the BSE TECk index (down 0.08%), the BSE PSU index (down 1.14%), BSE Realty index (down 2%), the BSE Oil & Gas index (down 0.26%), the BSE Healthcare index (up 0.16%), the BSE Bankex (down 0.31%) and underperfomed the Sensex.
Among the 30-member Sensex pack, 16 slipped while the rest gained. HDFC (up 4.76%), Grasim (up 1.14%), Infosys (up 0.57%), and Larsen & Toubro (up 1.15%), edged higher from the Sensex pack. However ACC (down 5.65%), Jaiprakash Associates (down 1.48%), and Tata Power (down 3.12%), edged lower from the Sensex pack.
Metal shares advanced on strong domestic demand and firm prices on the London Metal Exchange (LME). The world's sixth largest steel maker by sales Tata Steel jumped 10.71% to Rs 484.85, extending yesterday's 7.79% surge 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. It was the top gainer from the Sensex pack.
India's largest copper market by sales Sterlite Industries gained 3.57% to Rs 688.50 after its American depository receipt surged 6.99% on Monday, 1 June 2009.
Ispat Industries (up 10.71%), Steel Authority of India (up 3.62%), and Hindustan Zinc (up 6.66%), edged higher.
LMEX, a gauge of six metals traded on the LME, rose 4.18% to 2,355.20 on Monday, 1 June 2009
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) slipped 0.29% to Rs 2274.30, rebounding from day's low of Rs 2205. Earlier the stock came off day's high of Rs 2309. The Directorate General of Hydrocarbons has reportedly contested the authenticity of claims of gas reserves at Krishna Godavari basin blocks D-3 and D-9 by Hardy Oil & Gas Plc.
UK-based Hardy Oil, late last month, said RIL may have an estimated 20 trillion cubic feet of natural gas reserves in two areas off the east coast, more than double the quantity of its biggest field. The D-3 and D-9 fields may hold as much as 9.5 trillion cubic feet and 10.8 trillion cubic feet of gas, respectively, it had said. Hardy Oil & Gas Plc has 10% stake each in the two blocks where RIL is the operator with 90% interest.
Cairn India rose 1.99% after Goldman Sachs raised its 12-month target price to Rs 290 from Rs 240 earlier, saying the company was set to produce oil from its Rajasthan fields within the next few weeks.
HPCL lost 3.23% to Rs 349 despite reporting 32.74% rise in net profit to Rs 510.40 crore in Q4 March 2009 over Q4 March 2008. The results were announced during market hours today, 2 June 2009.
India's largest private sector bank by net profit ICICI Bank and a heavyweight in the 30-share BSE Sensex gained 2.05% to Rs 738, after sliding to a day's low of Rs 704. The bank's ADR rose 3.02% on Monday, 1 June 2009
India's largest bank by net profit and branch network State Bank of India (SBI), too, recovered sharply from an intra-day low of Rs 704 to settle 2.05% higher at Rs 738. The country's largest lender, State Bank of India (SBI), today said it has increased its stake to 55% in joint venture Nepal SBI from 50% earlier.
India's top tractor maker by sales Mahindra & Mahindra (M&M) advanced 2.02% to Rs 724.80 on surge in tractor sales in May 2009. The sales figures were announced after market hours on Monday, 1 June 2009.
India's top truck maker by sales Tata Motors rose 4.88% to Rs 354.45 after the company's American depository receipt (ADR) jumped 4.75% on Monday, 1 June 2009.
Bajaj Auto advanced 1.73% to Rs 1074 after total vehicle sales surged 9.59% to 1.85 lakh units in May 2009 over April 2009. The company's motorcycle sales rose 10% to 1.65 lakh units in May 2009 over April 2009. The sales figures were announced during market hours today, 2 June 2009.
India's top pharma company by sales Ranbaxy Laboratories fell 4.59% to Rs 262. The stock slipped on profit booking after it jumped 65.47% in one month to 1 June 2009.
However, India's largest pharma company by market capitalisation Sun Pharmaceuticals rose 0.53% to Rs 1225 on reports the company will spend Rs 332 crore in research & development (R&D) of low-cost versions of original drugs to be sold in the domestic and global markets. The Mumbai-based drug maker had last year spent Rs 290 crore on R&D activities.
India second largest private sector power generation firm by sales Reliance Infrastructure plunged 4.22% to Rs 1246. The stock slipped on profit booking after advancing 87.12% in one month to 1 June 2009.
India's second largest listed cellular services provider by sales Reliance Communications (RCom) slipped 0.67% to Rs 318.60 on profit booking. The stock had risen 4.89% on Monday, 1 June 2009 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.
Realty stocks cooled off on profit booking after a recent solid surge triggered by expectations that stability at the Centre will attract more money from foreign investors into the sector which in turn will boost growth.
DLF (down 2.82%), Housing Development & Infrastructure (down 0.85%), Indiabulls Real Estate (down 5.96%), and Unitech (down 0.54%), edged lower. DLF slipped on profit booking after surging 79.67% in one month to 1 June 2009.
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).
North India's largest cement firm by sales Ambuja Cements rose 1.89% after its shipments rose 8.3% to 1.64 million tonnes in May 2009 over May 2008. The figures were announced after market hours on Monday, 1 June 2009.
Grasim Industries rose 1.14% while UltraTech Cement slipped 1.90% despite the Aditya Birla Group's shipments rose 19.5% to 3.18 million tonnes in May 2009 over May 2008. Production rose 20% to 3.24 million tonnes in the same period. The group's cement business includes flagship Grasim Industries and unit UltraTech Cement, with combined production capacity of 42 million tonnes a year.
Shree Cement rose 1.91% to Rs 1060 after cement shipments surged 32.19% to Rs 7.35 lakh tonne in May 2009 over May 2008. The company made this announcement after market hours on Monday, 1 June 2009.
Essar Oil, too, led volume chart with over 57 million shares traded on the BSE today. It was followed by Ispat Industries (46.97 million), Unitech (32.58 million), IFCI (32.42 million) and Reliance Natural Resources (18.77 million).
Rashtriya Chemicals and Fertilizers (up 9.98%), Nagarjuna Fertilizers & Chemicals (up 4.96%), Deepak Fertilisers and Petrochemicals Corporation (up 1.49%), Tata Chemicals (up 3.12%), and Chambal Fertilisers & Chemicals (up 1.76%), rose on governments plan to maximise domestic production of fertilisers through modernisation and restructure of existing fertilisers production units.
Some mid and small-cap software shares gained on buying momentum. Aztecsoft (up 4.94%), Core Projects (up 5.60%), Firstsource Solutions (up 6.90%), KPIT Cummins (up 9.09%), 3i Infotech (up 8.57%), Patni Computer (up 5.14%), Polaris (up 3.56%), and Tech Mahindra (up 6.85%), surged
Sanghvi Movers jumped 8.65% to Rs 169.50 after a block deal of nine lakh shares was executed on BSE at Rs 162.10 a piece. The block deal constituted 2.08% of the company's equity.
Pantaloon Retail (India) rose 0.29% on reports France's Carrefour will buy stake in Future Fashion Merchandise, a company formed after a restructuring of Pantaloon earlier this year.
KGN Industries was locked at 5% upper limit after the company said its board will meet on 6 June 2009 to consider a 10-for-1 stock split. The company announced the board meet during trading hours today, 2 June 2009.
Among other side counters, Mindtree (up 18.78%), Bartronics (up 19.96%), Hawkins Cookware (up 20%), Ankur Drugs (up 19.98%), and Sasken Communications (up 15.46%), surged.
However, Metrochem Industries (down 11.01%), Sundaram Finance (down 8.42%), and HT Media (down 7.35%), slipped.
More gains likely
The markets are likely to continue their march higher and the expected breather is unlikely to materialise. US stocks brushed aside the GM bankruptcy and surged ahead to put on a 221 points gain in the Dow and a 24 point gain in the S&P 500. The S&P 500 is now above its 200 DMA. Nasdaq is already above its 200 DMA and the Dow needs to add just 70 odd points to go over the hump.
This is likely to trigger more buying by the funds that track the S&P 500. Meanwhile Crude has also added $2.21 to close at $68.58. This is likely to further buoy the refiners and the upstream oil companies. Upstream oil companies have more room to rise from here. The Nifty has also closed above the important 4509 mark, the high seen on 19th May. The last of the shorts may now scamper for cover.
Pre Session Commentary - June 2 2009
Today domestic markets are likely to open positive as the US markets closed with phenomenal gains on the back of better than expected economic data. The US personal income for April inclined by a surprise 0.5% and personal spending was better than expected decline of 0.1%. The construction spending was higher by 0.8% for April which was far better than expected. In the domestic arena the UPA government is likely to come up with array of stimulus for exports, infrastructure and other key sectors along with the disinvestment policy. Markets are likely to thrust on the back good feel factor across the global markets.
On Monday, the domestic markets closed positive on the back of phenomenal rally in markets across the world. The sentiments bolstered due to better than expected Chinese official purchasing manager’s index that recorded at 53.1 points is above 50 points mark for the third successive month. In the domestic arena the session got in a zigzag mode after some profit booking pressures tried pulling the frontline stocks. Sectors like Realty, Metal, IT, FMCG, and CD inclined by 5.65%, 5.32%, 3.95%, 2.76% and 2.68% respectively. On the other hand, Mid cap and Small cap stocks outshined benchmark indices with exemplary gains of 2.92% and 3.51% respectively. We expect the markets to be trading positive.
The BSE Sensex closed with gain of 215.38 points at 14,840.63 and NSE Nifty inclined by 80.95 points at 4,529.90. BSE Mid Caps and Small Caps closed with gains of 147.47 points and 209.96 points at 5,204.21 and 6,196.78 respectively. The BSE Sensex touched intraday high of 14,906.81 and intraday low of 14,655.49.
On Monday, the US Markets closed in green on the back of good economic data. Flurry of economic data pleased the investors bringing broad based buying sentiments that pushed S&P 500 to fresh highs for 2009 and the index also managed to close above 200-day moving average for the first time since December 2007. The personal income for the month of April recorded a surprise growth of 0.5% and on the other hand the personal spending for April declined a better than expected 0.1%. Construction spending for the month of April showed a surprise growth of 0.8% month-over-month. The ISM Manufacturing index for May was also inline with the expectations at 42.8. Finally General Motors has submitted for bankruptcy with the U.S. government which in turn will provide $30 billion for a 60% stake in the company. GM and Citigroup will be replaced in Dow Jones with Cisco and Travellers respectively with effect from June 8 onwards. The US light crude oil for July delivery inclined by 3.2% to settle at $68.40 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed high by 221.11 points at 8,721.44, the NASDAQ Composite (RIXF) index inclined by 54.35 points to close at 1,828.68 and the S&P 500 (SPX) gained 23.73 points to close at 942.87.
Indian ADRs ended Positive. In technology sector, Satyam and Wipro closed up by (7.55%) and (5.59%) respectively. In banking sector ICICI Bank and HDFC Bank surged (3.02%) and (1.90%) respectively. In telecommunication sector, MTNL and Tata Communication gained (6.05%) and (4.66%) respectively. However, Sterlite Industries galloped by (6.99%).
Today major stock markets in Asia are trading positive. Hang Seng is low by 88.86 points at 18,799.73. Shanghai Composite is up by 17.58 points at 2,738.82. However Japan''s Nikkei is trading up by 65.82 points at 9,743.57. Strait Times is also up by 23.79 points at 2,403.86. Seoul Composite is also up by 13.18 points at 1,428.28.
The FIIs on Monday stood as net buyers in equity and sellers in debt. Gross equity purchased stood at Rs 5,979.30 Crore and gross debt purchased stood at Rs 79.00 Crore, while the gross equity sold stood at Rs 5,145.10 Crore and gross debt sold stood at Rs. 0.00 Crore. Therefore, the net investment of equity and debt reported were Rs 834.20 Crore and Rs 79.00 Crore respectively.
On Monday, the partially convertible rupee closed at 46.94/95 per dollar, 0.4% stronger than it previous close at 47.11/12. The rupee gained strength on the phenomenal consecutive surge in local stock markets.
On BSE, total number of shares traded were 69.53 Crore and total turnover stood at Rs 8,177.61 Crore. On NSE, total number of shares traded was 150.80 Crore and total turnover was Rs 24,877.16 Crore.
Top traded volumes on NSE Nifty – Unitech with 136155389 shares, Suzlon Energy with 95946316 shares, DLF with 18098160 shares, Hindalco with 15040839 shares, followed by Reliance Comm with 14485796 shares.
On NSE Future and Options, total number of contracts traded in index futures was 552064 with a total turnover of Rs 11,860.39 Crore. Along with this total number of contracts traded in stock futures were 454214 with a total turnover of Rs 26,029.86 Crore. Total numbers of contracts for index options were 822133 with a total turnover of Rs 18,925.12 Crore and total numbers of contracts for stock options were 29166 and notional turnover was Rs 1669.02 Crore.
Today, Nifty would have a support at 4,570 and resistance at 4,628 and BSE Sensex has support at 14,996 and resistance at 15,125.
Market seen extending four-day advance on strong global cues
Key benchmark indices are seen extending gains for fifth straight session mirroring strong global cues. The SGX Nifty futures for June 2009 expiry was up 18 points in Singapore. However profit booking after the recent sharp rally cannot be ruled out. 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 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 convened the first session of the 15th Lok Sabha on Monday, 1 June 2009. The session will last till 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.
Most Asian markets were trading higher today, 2 June 2009 as US manufacturing data the previous day reinforced hopes that demand will stabilise, while automakers such as Toyota Motor Co and Honda Motor Co climbed after General Motor's bankruptcy filing removed some uncertainty from the market.. Key benchmark indices in China, Japan, Singapore, South Korea, and Taiwan rose by between 0.64% and 1.07%.
However Hong Kong's Hang Seng index was down 0.35%.
US markets rallied on Monday, 1 June 2009 despite General Motors filing for bankruptcy, as strong manufacturing and construction reports raised hopes of a global economic recovery.
The Dow Jones Industrial Average jumped 221.11 points, or 2.6%, to 8,721.44. The Standard & Poor's 500 Index gained 23.73 points, or 2.58%, to 942.87 and the Nasdaq Composite index rose 54.35 points, or 3.06%, to 1,828.68.
Wall Street was buoyed by a report that said while the manufacturing sector contracted in May 2009, the rate of the slowdown was lower than expected. Construction spending was also up in April 2009, according to a report from the Commerce Department, which said the 0.8% gain was the highest since August 2008
GM filed for bankruptcy on Monday, 1 June 2009 after years of taking heavy losses, becoming the largest-ever US manufacturer to seek court protection. The US government will extend $50 billion of loan to the automaker and will convert it into a 60% stake in the reorganized company, according to a filing in US Bankruptcy Court in New York.
Back home, 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.
The BSE 30-share Sensex gained 215.38 points, or 1.47%, to 14,840.63, its highest closing since 9 September 2008. The S&P CNX Nifty advanced 80.95 points, or 1.82%, to 4,529.90, its highest closing since 12 August 2008.
As per the provisional figures on the NSE, foreign institutional investors (FIIs) bought shares worth Rs 279.67 crore on Monday, 1 June 2009 while domestic institutional investors sold shares worth Rs 196.74 crore.
Good times continue at Wall Street
Pleasing global economic reports take US stocks higher
US stocks ended with huge gains on Monday, 01 June, 2009. Couple of encouraging economic reports on Wall Street together with encouraging manufacturing data from China helped US stocks rally right out of the gate today morning. Energy prices also ended considerably higher. General Motors remained in the headlines today for most part of the day today due to its bankruptcy news.
After starting the day 123 points higher earlier during the day, The Dow Jones Industrial Average ended higher by 221 points at 8,721. The Nasdaq Composite Index, ended higher by 54 points at 1,828. S&P 500 ended higher by 24 points at 942.
Nine of the ten sectors ended in the green led by industrials and consumer discretionary sectors. Telecom was the only sector to end in the red.
General Motors lent good support to the Dow despite news that the company is filing for bankruptcy. According to GM CEO Fritz Henderson, GM believes it can complete bankruptcy in 60 to 90 days.
Though GM remains a Dow component for now, Cisco is expected to replace GM in the Dow Jones Industrial Average from 8 June. As per latest reports, Citigroup will also get replaced by Travelers.
The Commerce Department reported on Monday, 01 June, 2009 that the Institute of Supply Management (ISM) Manufacturing Index for May came in at 42.8. The data indicated that that manufacturing activity is contracting, but that activity continues to improve since earlier this year. Additionally, construction spending for April showed a surprise 0.8% month-over-month increase, making for two consecutive monthly increases.
In other economic news, personal income for April increased 0.5%, despite continued layoffs and loose labor market conditions. The figure came against an expected 0.2% decrease. Personal spending for April showed another decrease, though the 0.1% decline wasn't as bad as expected and was an improvement from the previous month.
Yesterday, it was reported that , China's manufacturing PMI came in at 53.1 in May, slightly below April's 53.5 but stayed above 50 for the third consecutive month, suggesting that the manufacturing sector is maintaining its modest pace of expansion.
After an astounding finish for May, 2009, crude prices kicked off June 2009 on a sharp note with oil prices rising for the sixth consecutive session on Monday, 01 June, 2009. Prices rose as China's economy continued to witness moderate expansion and also as the dollar slid further. On Monday, crude-oil futures for light sweet crude for June delivery closed at $68.58/barrel (higher by $2.27 or 3.4%). Last week, crude ended higher by 7.5%.
While U.S. stocks have been trading with impressive gains since the opening bell, the U.S. dollar remained under continued pressure. In the currency market on Monday, the U.S. Dollar Index, a gauge of the greenback against six major currencies, slid as much as 0.7%, following a 6.1% drop in May.
May auto and truck sales and pending home sales are the only items on the economic calendar for tomorrow
Daily News Roundup - June 2 2009
New York-based hedge-fund Harbinger Capital Partners joins Sterlite in the race for Asarco. (BS)
Pantaloon Retail is close to sealing an equity partnership deal between one of its subsidiaries and French retail giant Carrefour. (BS)
The NTPC-BHEL JV has zeroed in on Andhra Pradesh to establish Rs60bn power equipment manufacturing base in Chittoor district. (BL)
Axis Bank plans to raise Rs30bn debt in local or overseas markets for meeting its tier-I and tier-II capital needs. (FE)
Zydus Cadila and Israeli generic major Teva have settled their patent disputes over active pharmaceutical ingredients used to make generic versions of GlaxoSmithKline’s heart drug and Johnson & Johnson’s anti-psychotic drug. (ET)
Bharti Group has ruled out any revision in its proposed deal to buy 49% stake in South African telco MTN. (ET)
Tata Teleservices plans to offer services on the GSM platform. (ET)
Voltas has secured two orders worth Rs3bn for electro-mechanical projects for the new generation airports in India. (FE)
SpiceJet plans to acquire a rival budget airline and to start international and regional operations. (ET)
Sun Pharmaceuticals has filed a case against Taro Pharmaceuticals in the Tel Aviv District Court requesting the court to order it to publish audited financial results. (ET)
Bharti Airtel and Vodafone Essar have added 2.8mn and 2.7mn subscribers respectively in April 2009. (ET)
NTPC seeks Government’s help to resolve fuel supply issues. (FE)
Ratnagiri Gas & Power has signed a five-year contract to buy gas from Reliance Industries. (ET)
Jet Airways is in talks with Gulf Air, Oman Air to convert lease deals. (ET)
Moser Baer has received Rs125mn order from Mahagenco for development of its 1MW solar power project at Chandrapur. (ET)
Gujarat NRE Coke has raised Rs500mn by issuing non-convertible debentures to two state-run lenders. (FE)
CPCL’s capacity to go up by 1mt from October. (BL)
The Government will consider Air India’s IPO on the bourses only after the capital market improves. (FE)
Corporation Bank raised Rs5bn through Upper Tier II bonds. (BL)
Ashok Leyland plans to develop CNG vehicles. (ET)
SAIL to recruit about 600 employees in FY10. (FE)
Religare has signed an agreement with global reinsurer Swiss Re to set up a 74:26 JV for health insurance. (BS)
Afcons Infrastructure, the infrastructure arm of Shapoorji Pallonji Group has forayed into the offshore oil and gas segment. (FE)
The directorate general of hydrocarbons has challenged the authenticity of London-based Hardy Oil & Gas’s claim of having huge gas reserves in KG basin blocks - D-3 and D-9. (ET)
General Motors has filed for bankruptcy and plans to set up a new company in 90 days. (ET)
PepsiCo has doubled its investment target in the beverages business to Rs10bn in 2009. (ET)
LG Electronics plans to invest Rs1bn in promotion of its home appliances in the current year. (ET)
Economy Snippets
The trade deficit narrowed 50% to US$5bn in April 2009 as imports fell 37% against a 33% fall in exports. (BS)
The Government is considering forwarding a proposal to introduce the auctioning of entitlements to borrow abroad to RBI. (FE)
The Indian Bank’s Association has denied any possibility of a 400-500bps cut in lending rates. (ET)
The proposal for auctions of 3G spectrum may be cleared directly by the Union Cabinet. (ET)
The Government has imposed an anti-dumping duty of US$0.36-1.9 per piece on the imports of compact fluorescent lamp (CFL). (ET)
Power minister said that awarding multiple UMPPs to a single company was a cause for concern as it could lead to execution delays. (BL)
The Communications and IT Minister pitches for 2-year extension of STPI scheme. (BL)
The Government plans to speed up its rural electrification program and to try to achieve the target of Rajiv Gandhi Grameen Vidyutikaran Yojana by March 2010. (ET)
The IT Ministry is likely to extend tax sops to software parks. (ET)
The Government has no plans to privatise any existing airports. (FE)
India Inc has urged the finance minister to abolish FBT or alternatively allow it as a credit against income tax. (FE)
Railways register 5.28% yoy increase in earnings at ~Rs22.7bn in May 2009. (ET)
Telecom operators reported a dip in telephone subscriber growth rate with 11.75mn new users in April compared with 15.87mn in March. (BL)
Multiplex owners and producers to sign revenue-sharing deal this week. (FE)
Bulls fine, bears whine!
If we see green shoots, can a return to days of wine and roses be all that far behind?
The bears must be whining. Sentiment seems to be overtaking earnings and valuations at a fast pace. Bulls are getting increasingly confident even as the debate continues on whether or not this is a bear market rally. The lows hit last October or even in early March could well be things of the past if the present is some indication of the future. The earlier skeptical ‘Green Shoots’ theory seems to be sprouting all over the place. Weeds in the form of bad news are being overlooked and minor good news is greeted with cheer as if the tree has already borne fruit.
Conviction seems to return that the process of economic turnaround has already begun though it remains a bit tentative. Safety is not a concern at the moment and risk is getting re-priced on the higher side. A sustained turnaround is still some while away though. There will be bumps on the road to recovery for sure. This makes a case for some restraint, lest one may have to repent later. We are looking for a slightly firm opening and some cooling afterwards.
FIIs were net buyers in the cash segment on Monday at Rs2.8bn while the local institutions pulled out Rs1.97n. In the F&O segment, the foreign funds were net buyers at Rs2.07bn. On Friday, FIIs were net buyers at Rs8.34bn in the cash segment.
HPCL will announce its Q4 and FY09 results today.
The yen traded near a two-month low against the euro, as stocks rallied across the globe on signs that an economic recovery is gathering pace, encouraging investors to seek higher-yielding currencies. Bond prices in the US declined, as yields move higher, an indication of increasing investor confidence. The dollar lost further ground on the first day of June, as investors thronged to commodities and equities. Commodities-oriented currencies lead charge against the greenback.
US stocks rallied on Monday, sending the Dow Jones Industrial Average near the breakeven point for the year, spurred by better-than-expected reports on manufacturing, personal income and construction activity.
The Standard & Poor’s 500 Index touched a seven-month high after most of the day's economic reports beat economists’ forecasts. Bond prices fell for the first time in three days and the dollar weakened to its lowest level of 2009.
The Dow Jones Industrial Average surged 221 points, or 2.6%, to close at 8,721.44 points. The blue chip average is within 55 points of breaking even for the year. The broader S&P 500 index gained 24 points, or 2.6%, to about 943 points - its highest level of the year. The Nasdaq Composite index jumped 54 points, or 3%.
Meanwhile, General Motors Corp. (GM) and Citigroup were removed from the Dow Jones Industrial Average and replaced by Cisco Systems Inc. and Travelers Cos.
US stocks opened higher as investors looked past an official declaration of bankruptcy by GM, which had been widely expected. The rally gained steam after an industry report showed US manufacturing activity shrank at a slower pace last month.
The day's economic reports were better than expected, both in the US and abroad. The recession has reached its bottom and the improved economic outlook has helped draw some cash off the sidelines.
Wall Street rallied on Friday, with the major indexes ending May in positive territory. That marked the third consecutive month that US stocks have risen, though May's gains were smaller than those posted in the previous two months.
The US manufacturing sector contracted in May, but the pace of deterioration was slower than expected. The Institute for Supply Management (ISM) said that its index of national factory activity rose to 42.8 from 40.1 in April. Economists had expected the index to increase to 42.
A reading below 50 in the index indicates the manufacturing sector is contracting. But May's gain puts the index over the tipping point that suggests expansion in the overall economy. A reading above 41.2%, over a period of time, is generally consistent with growth in GDP.
Meanwhile, two separate reports showed manufacturing activity in China expanded last month. A measure of India's manufacturing sector rose to its highest level in eight months. European manufacturing activity shrank at a slower pace in May, with a eurozone purchasing managers index marking its biggest monthly jump on record.
US construction spending unexpectedly rose 0.8% in April, its biggest increase in eight months, the Commerce Department reported. Analysts had forecast spending to fall 0.8%.
Separately, personal income rose 0.5% in April, the biggest increase in 11 months, the government reported. But consumer spending dropped 0.1%.
GM filed for bankruptcy protection in a move aimed at helping the once-mighty automaker emerge with only its more profitable plants, brands, dealerships and contracts. GM's stock rose 18% earlier in the session. Analysts said that the rally was related to short selling. Shares closed 8% higher.
GM stock will begin trading on the "Pink Sheets" on Tuesday morning, said Cromwell Coulson, CEO of Pink OTC Markets Inc. Pink sheets allow for trading in certain stocks that are not listed on an exchange or the Nasdaq.
GM's bankruptcy filing occurred just hours after a US Bankruptcy Court judge in New York approved Chrysler's sale of most of its assets to Italian carmaker Fiat.
Treasury prices fell, with the yield on the benchmark 10-year note rising to 3.71% from 3.46% on Friday.
In currency trading, the dollar fell against the euro and the British pound. It rose against the Japanese yen.
NYMEX oil for July delivery rose by $2.27 a barrel to settle at $68.58.
COMEX gold for August delivery fell 30 cents to close at $980 an ounce.
Commodity related stocks and banks led a sharp advance in Europe. The pan-European Dow Jones Stoxx 600 index climbed 2% to 212.43, the fifth time it has risen in six sessions, and building on a 4% gain for May.
Germany's DAX 30 index rose 3% to 5,090.56, while the French CAC-40 index was up 2.2% at 3,349.24 and the UK's FTSE 100 index advanced 1.3% to 4,474.05. Russia's RTS index jumped 7.2% to 1,166.06.
It was the fourth straight say of gains for Dalal Street as the key indices ended at 9-month high. The rally was led by Realty, Metal and IT stocks. In addition, firm cues from the US, Asian and the European markets also lifted the sentiment.
Finally, the Sensex surged 215 points or 1.4% to close at 14,840 after touching a high of 14,907 and a low of 14,655. The index had opened at 14,746 against the previous close of 14,625.
The NSE Nifty gained 84 points or 1.8% to shut shop at 4,532.
Among the BSE Sectoral indices BSE Realty index was the top gainer surging 5.5%, followed by the BSE Metal index up 5.2%, BSE IT index up 4%, BSE Consumer Durable index up 2.7% and BSE FMCG index up 2.7%.
The BSE Mid-Cap index was up 3% and BSE Small-Cap index added 3.5%.
Hotels stocks hogged the limelight on Monday on speculation that the government would classify them as infrastructure companies subject to lower lending and tax rates.
Stocks like Indian Hotels climbed 16% to end at Rs76.2. the stocks surged the most since April 1992. EIH Ltd surged 15% to Rs140.5. Hotel Leela rallied over 20% to shut shop at Rs39.5 and Taj GVK shot up over 19% to end at Rs111.9.
Shares of M&M gained by over 5% to Rs710 after the company’s total vehicle sales for May were are 15,323 units against 16,756 units for the samemonth last year. Similarly, YTD (Apr-May 2009-10) sales are 36,742 versus 33,659 for the same period previous year.
Total Auto sector sales for the month are 16,866 for the month against 20,653 for the same month last year. Similarly, YTD (April-May 2009-10) sales are 39,870 versus 40,683 for the same period previous year.
Shares of Tata Steel gained by over 7.5% to Rs437 after the company’s 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. The scrip touched an intra-day high of Rs446 and a low of Rs412 and recorded volumes of over 3.8mn shares on BSE.
Shares of NTPC surged by over 6% to Rs229 after reports stated that the company would sign an agreement with Coal India for setting up a 4,000-MW pithead power plant at Brahmani block near Rajmahal in Jharkhand. The scrip touched an intra-day high of Rs231 and a low of Rs218 and recorded volumes of over 3.5mn shares on BSE.
Shares of Opto Circuit surged by over 6% to Rs177 after the company announced that its arm received USFDA approval for Pulse Oximeter Module. The scrip touched an intra-day high of Rs180 and a low of Rs169 and recorded volumes of over 0.6mn shares on BSE.
BSE Sensex may look to hit the 15k levels on Tuesday, provided global cues are supportive. Technically as well, 4,550 look to be a strong resistance levels from where the Nifty turned around on Monday. Worries remain over the ballooning fiscal deficit. Locking in some gains is not a bad idea
Precious metals continue to shine
Gold and silver continue to glitter on encouraging economic reports
Precious metals kicked off June 2009 on a strong note. Bullion metals ended higher once again on Monday, 01 June, 2009 as the dollar continued to sink further. Prices also ended higher as encouraging economic report increased inflation concerns thereby increasing the appeal of 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 Monday, Comex Gold for June delivery rose $4.75 (0.5%) to close at $983.55 an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 2%. Year to date, gold prices are higher by 13%.
Gold had 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 Monday, Comex silver futures for July delivery rose 27 cents (0.9%) at $15.88 an ounce. Last 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 38% this year. For 2008, silver had lost 24%.
The Commerce Department reported today that U.S., the personal-savings rate jumped to a 14-year high of 5.7% in April as after-tax incomes were boosted by provisions of the economic stimulus plan.
Also, on the economic front, China's manufacturing PMI came in at 53.1 in May, slightly below April's 53.5 but stayed above 50 for the third consecutive month, suggesting that the manufacturing sector is maintaining its modest pace of expansion.
In the currency market on Monday, the U.S. Dollar Index, a gauge of the greenback against six major currencies, slid as much as 0.7%, following a 6.1% drop in May. The index lost 1% in April and 2.9% in March.
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 August delivery closed lower by Rs 76 (0.5%) at Rs 14,808 per 10 grams. Prices rose to a high of Rs 14,970 per 10 grams and fell to a low of Rs 14,770 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 147 (0.6%) lower at Rs 24,048/Kg. Prices opened at Rs 24,209/kg and fell to a low of Rs 23,857/Kg during the day's trading.
Crude take a giant leap
Prices rise sharply on hopes of quick economic recovery
After an astounding finish for May, 2009, crude prices kicked off June 2009 on a sharp note with oil prices rising for the sixth consecutive session on Monday, 01 June, 2009. Prices rose as China's economy continued to witness moderate expansion and also as the dollar slid further.
On Monday, crude-oil futures for light sweet crude for June delivery closed at $68.58/barrel (higher by $2.27 or 3.4%). Last week, crude ended higher by 7.5%.
Crude ended the month of May, 2009, higher by 30%. This was the largest month 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 52% since then. Year to date, in 2009, crude prices are higher by 38.3%.
The Commerce Department reported today that U.S., the personal-savings rate jumped to a 14-year high of 5.7% in April as after-tax incomes were boosted by provisions of the economic stimulus plan.
Also, on the economic front, China's manufacturing PMI came in at 53.1 in May, slightly below April's 53.5 but stayed above 50 for the third consecutive month, suggesting that the manufacturing sector is maintaining its modest pace of expansion.
In the currency market on Monday, the U.S. Dollar Index, a gauge of the greenback against six major currencies, slid as much as 0.7%, following a 6.1% drop in May. The index lost 1% in April and 2.9% in March.
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 Monday, July reformulated gasoline gained 2.9 cents, or 1.5%, to $1.9243 a gallon and July heating oil futures rose 9.89 cents, or 5.9%, to $1.7765 a gallon.
Natural gas for July delivery surged 41.4 cents, or 10.8%, to $4.249 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for June delivery closed at Rs 3,190/barrel, higher by Rs 66 (2.1%) against previous day's close. Natural gas for June delivery closed at Rs 192.4/mmbtu, higher by Rs 7.6/mmbtu (4.1%).
Ambuja Cements
We recommend a buy in Ambuja Cements from a short-term perspective. It is evident from the charts of Ambuja Cements that it has been on an intermediate-term up-trend, forming higher peaks and higher bottoms since its October 2007 low of Rs 43. This low is also its 52-week low. In early April the stock emphatically penetrated its 200-day moving average and is currently trading way above this average. On May 20, the stock surged 7 per cent with good volume breaking through a long-term resistance level of Rs 90. Besides, the stock reinforced the up-trend by gaining 7 per cent on June 1. We observe that there is an increase in volumes over the past three trading sessions. Both daily and weekly relative strength indices (RSI) are featuring in the bullish zone. The weekly moving average convergence and divergence has entered the positive territory. The intermediate-term up-trendline is intact. Though the stock is facing minor resistance at Rs 100, we are bullish on the stock and expect it to surpass this resistance in the near future. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 93 and with target of Rs 109.
via BL
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