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Thursday, June 04, 2009
Jaiprakash Hydro-Power leads gainers in 'A' group
Max India, Torrent Power, MMTC, and IDBI Bank are among the other gainers.
Hydroelectric power project operator Jaiprakash Hydro-Power surged 20.64% to Rs 89.15. It topped the gainers in the BSE's 'A' group.
Diversified firm Max India soared 13.65% to Rs 230.70. It was the second biggest gainer in 'A' group.
Power distributor Torrent Power spurted 10.23% to Rs 157.35 on reports the company has submitted a proposal to Gujarat Electricity Regulatory Commission (GERC) for hiking tariff by 15%. It was the third biggest gainer in 'A' group.
State-run trading firm MMTC climbed 10% to Rs 31,098.25 on hopes the government may divest substantial stake in the company. The government holds 99.33% stake in MMTC as on March 2009. The stock was the fourth biggest gainer in 'A' group.
State-run IDBI Bank rose 9.80% to Rs 99.15. It was the fifth biggest gainer in 'A' group.
Asian markets relinquish recent gains
Seoul, Sydney heads regional losses while Sensex bucks the regional trend
Stock market
in Asian region tramped into negative territory amid concerns about the U.S. economy following weak U.S. private employment and services reports. Profit booking following recent rally and caution ahead of key U.S. jobs report, coupled with lower commodity prices in international market influenced the markets across the region.
On Wall Street, the major indices in New York cut losses in half in the final minutes of trading but still closed lower as stocks took a breather after two days of advances. The Dow Jones Industrial Average fell 65.63 points, or 0.8%, to 8675.24, while the S&P 500 declined 12.98 points, or 1.4%, to 931.76. The Nasdaq gave up 10.88 points, or 0.6%, to 1825.92.
The midweek declines came as ADP reported worse-than-expected private sector unemployment data; Fed Chairman Ben Bernanke urged Congress to mind the deficit; and energy stocks sold off due to inventory build and a dim outlook from Valero Energy.
ADP reported that unemployment in the private sector rose more than expected last month, estimating that the economy shed 532,000 jobs. That's down from an upwardly revised 545,000 in April and more than the 525,000 anticipated.
In the commodity market, crude oil was little changed near $67 a barrel after falling the most in two weeks yesterday as a government report showed that U.S. supplies unexpectedly increased when fuel consumption plunged to a 10-year low.
According to the Energy Department, Crude inventories climbed 2.9 million barrels to 366 million in the week ended 29 May 2009. The gain occurred as imports surged 9.9% and refineries increased operating rates to the highest level in six months. Fuel demand fell to the lowest since May 1999.
Crude oil for July delivery was at $67.19 a barrel, up NT$ 1.07, on the New York Mercantile Exchange at 11:24 a.m. in London. Yesterday, the contract fell $2.43, or 3.5%, to settle at $66.12 a barrel, the biggest decline since 15 May 2009.
Brent crude for July delivery was at $67.20 a barrel, up NT$ 1.32, on London’s ICE Futures Europe exchange at 11:44 a.m. in London. It dropped $2.29, or 3.4%, to end yesterday’s session at $65.88 a barrel, the biggest decline since 20 April 2009.
Gold advanced, paring the biggest decline in almost two months yesterday, as a drop in the dollar increased demand for the metal as an alternative investment. Gold for immediate delivery advanced 0.2% to $967.40 an ounce at 11:24 a.m. in London, trading between $961.92 and $968.85. The metal declined 1.9% yesterday, the largest drop since 6 April 2009.
In the currency market, US dollar pares some of yesterday's gain as finance markets stabilize from yesterday's volatility.
The Japanese yen softened against the greenback on Thursday after Fitch Ratings reiterated its confidence in the U.S. and U.K.’s AAA ratings, damping demand for Japan’s currency as a refuge from the global financial crisis. The Japanese currency quoted at 96.25 per greenback, compared to 96.00 hit late New York Wednesday.
The Hong Kong dollar was trading at HK$ 7.7520 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
In Sydney trades, the Australian dollar was softening against the greenback on Thursday after weak U.S. economic data triggered a sell-off in commodity-linked currencies. The Aussie was quoted at 80.30 cents against the greenback.
In Wellington trades, kiwi recovered to US 63.75 cents before drifting off to US 62.97 cents towards the end of the day, which compared with US 65.47 cents yesterday. The New Zealand dollar was mixed today after plunging on Wednesday night when investors took profits in higher-yielding but riskier currencies.
The South Korean currency ended at 1,251 won against the greenback, down 17.8 won from Wednesday's close, as foreign investors cut their holdings of Seoul stocks
The Taiwan dollar weakened for the second time in the week. The Taiwan dollar was lost against the US dollar as it was trading lower at NT$ 32.6110, down by NT$ 0.1060 from Wednesday’s close of NT$32.505.
Coming back in equities, most Asian equity markets staged a retreat, with resource stocks leading the fall after an overnight pullback in commodity prices.
In Japan, the stock index dropped, snapping its six days of winning streak, as reasonable amount of profit taking witnessed in the market following reports on a drop in capital spending by Japanese companies in the first quarter, U.S. economy reports raise growth concerns, and looming resistance levels. The Nikkei 225 Stock Average index dropped 72.71 points, or 0.8%, to 9,668.96, while the broader Topix index added 3.51 points, or 0.4% to 911.
On the economic front, Japan’s Finance Ministry announced earlier that Japanese companies drastically cut capital spending by a record of 25.3% in the first quarter ended 31 march from a year earlier as a slump in global demand eroded profits, leaving less money for plant and equipment.
However, the government said there were first signs that worst is over for the world’s second-largest economy, which has been hit by the worst recession since the end of World War II.
In Mainland China, stock market also tumbled snapping four days of winning streak from as investors prompted for profit booking after the China’s said unemployment is worsening, a quick rebound in trade is becoming less likely, and the nation is yet to feel the full effects of a global slump, but the mood remains cautiously positive in the region on further signs an economic recovery are gathering pace.
At the closing bell, the Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, dropped 0.4%, or 11.34 points, to 2,767.24, while the Shenzhen Component Index tumbled added 0.2% or 21.41 points to 10,733.72.
In Hong Kong, the stock market retreated, as commodity stocks and property developers surrendered some of their hefty recent gains after an overnight drop on Wall Street. Energy tumbled as crude oil prices plunged overnight from seven-month highs.
The investors’ sentiments turned fragile after the China’s government said yesterday unemployment is worsening, a quick rebound in trade is becoming less likely, and the nation is yet to feel the full effects of a global slump. However, losses were capped by gains in financials recouped early losses on bottom fishing on expectations that the global economy in the path of recovery.
The Hang Seng Index climbed tumbled 73.7 points, or 0.4%, to 18,502.77, while the Hang Seng China Enterprise Index melted 118.52 points, or 1.09% to 10,706.68.
In Australia, the stock market plunged, snapped four days of winning streak, on tracking negative cues from overseas market, pullback in commodities prices, and the re-emergence of capital raisings concern. Shares of industrials, miners, and materials and resources dragged down the market after pullback in crude oil and metals prices amid concerns over the global economic outlook, meanwhile a falling gold price weighed on gold miners.
At the closing bell, the benchmark S&P/ASX200 index dropped 82.6 points, or 2.06%, to 3,934.6, while the broader All Ordinaries dived 76.80 points, or 1.92%, to 3,932.5.
On the economic front, the Australian Bureau of Statistics reported that the Australia trade balance unexpectedly fell into a seasonally adjusted deficit of A$91 million ($73 million) in April. The deficit was attributed largely to lower exports of coal, iron ore and wheat. Overall exports were down 11% on month to A$21.68 billion. Non-rural goods exports, which include mining output, were down 12%. Imports declined 2.0% to A$21.77 billion.
In New Zealand, benchmark index gave up its three-day winning streak to end in the negative terrain on Thursday. The New Zealand share market was down in the first few minutes of trading this morning, in the wake of tumbling stocks in the United States. At the closing bell, the NZX50 fell by 0.88% or 24.91 points to 2815.71. The NZX 15 was down 0.84% or 43.94 points to close at 5167.86.
In South Korea, stock markets closed 2.6% lower as foreign and institutional investors dumped local stocks amid lingering woes over a global economic recovery. The benchmark Korea Composite Stock Price Index (KOSPI) declined 36.75 points to 1,378.14.
In Singapore, the stocks index dropped, reversing direction as losses in the financials, properties, and manufacturing issues amid profit booking on tracking negative cues from overseas market and pullback in commodities and oil prices. The blue chip Straits Times Index dropped 21.08 points, or 0.88%, to 2,362.74.
In Taiwan, stock market fell further posting their biggest daily percentage drop in about three-weeks, as dismal U.S. economic data dampened hopes for an economic recovery and dented the technology shares. The main Taiex share index declined further, as the Taiex index dumped 107.08 points or 1.55%, closing the day at 6786.06, its weakest finish since 26 May 2009 and the worst single-day percentage drop since 14 May 2009.
In Philippines, the stock market overturned yesterday’s losses closing nearly 1% higher as investor’s sentiments were supported by positive economic news released by the central bank yesterday. Furthermore the investors are looking forward for the May inflation data, which will be released tomorrow. The investor’s are expecting the inflation to ease further, which will provide the monetary boardroom for further domestic policy easing.
The benchmark index PSEi climbed 0.93% or 23.05 points to 2,494.24, while the All Shares index rose 0.57% or 9.23 points to 1,608.02.
On the economic front, demand for money continued to grow in April 2009 as domestic liquidity or M3 rose by 13.7% year-on-year. The expansion in liquidity was fueled mainly by the continued rise in net foreign assets (NFA) at 20.2 % in April, which can be traced to the sustained growth in the net foreign assets of the BSP and the banks at 19.8 % and 22.5 %, respectively. Net foreign assets rose as the BSP continued to build up its international reserves and banks settled a significant portion of their foreign liabilities.
Moreover, the double-digit growth of outstanding loans of commercial banks including reverse repurchase agreements (RRPs) was sustained at 13.4% in April, albeit a deceleration from the previous month’s growth of 18.9%. Preliminary data indicated that loans for production activities continued to lead the credit expansion in April, growing at a faster rate of 18.1% from 16.8% in March.
In India, the market ended in positive territory, bucking the overall trend in the region on expectation of more reforms from the new Government. Key benchmark indices reversed sharp early losses to end with smart gains as investors mopped equities after the newly elected UPA government in its agenda disclosed about reviving economic growth. The barometer BSE Sensex vaulted past the psychological 15,000 mark in late trade. The BSE 30-share Sensex rose 137.78 points, or 0.93%, to 15,008.68. The S&P CNX Nifty shot up 41.95 points, or 0.93%, to 4,572.65.
Elsewhere, Malaysia's Kula Lumpur Composite index was up 0.81% or 8.57 points to 1063.97 while Indonesia’s Jakarta composite index ended the day higher at 2032.72.
In other regional market, European share rose for the first time in three sessions on Thursday, as oil producers staged a turnaround and supermarket groups also advanced.
On a regional level, the U.K. FTSE 100 index rose 0.8% to 4,416.79, the German DAX 30 index climbed 0.7% to 5,089.08 and the French CAC-40 index advanced 0.8% to 3,335.28.
Looking ahead, investor’s focus will turn to the three central bank meetings today, Bank of England, European Central Bank and Bank of Canada; all are expected to leave rates unchanged. Apart from this, we have a retail sales data from Euro zone, which will be followed by Canadian building permits.
Sensex ends above 15K mark, RCap zooms 6.92%
Indian equities ended the day on a buoyant note. The 30-share BSE Sensex which opened on a negative, bounced back in the noon trade mirroring strong cues of European markets.
Major gainers in the sectoral indices were BSE Realty (3.29%), Capital Goods (3.23%) and Health Care (2.60%). Meanwhile, BSE Metal (2.11%), Consumer Durables (0.55%) and IT (0.52%) were major losers in the 30-share index.
BSE Midcap and Small too closed on a positive note higher by 2.26% and 2.20% respectively.
On the global front, European stocks advanced before today`s interest-rate decision from the European Central Bank.
J Sainsbury climbed more than 2.5% after Morgan Stanley recommended the stock. Rio Tinto Group dropped 1.5% as copper futures slipped in Shanghai for the first time in five days. UK`s benchmark index FTSE 100 gained 45.16 points, or 1.03%, to trade at 4,428.58. French benchmark index CAC 40 rose 34.25 points, or 1.03%, to trade at 3,343.90. Germany`s benchmark index DAX advanced 57.98 points, or 1.15% at 5,112.51. (2:58 p.m., IST)
The Sensex ended the day with a gain of 137.78 points, or 0.93% at 15,008.68 after touching a high of 15,026.03 and a low of 14,599.43. The broad-based NSE Nifty climbed 41.95 points, or 0.93% at 4,572.65 after hitting a high of 4,582.20 and a low of 4,453.45.
Biggest gainers in the 30-share index were Reliance Capital (6.92%), Ranbaxy Laboratories (6.06%), Sun Pharmaceutical Industries (4.14%), Hindustan Unilever (3.73%), Reliance Energy (3.39%), and Larsen & Toubro (3.30%).
On the other hand, Sterlite Industries (India) (5.91%), Hindalco Industries (3.54%), Tata Steel (3.53%), Wipro (1.26%), Infosys Technologies (1.15%), and Mahindra & Mahindra (1.11%) were the biggest losers in the Sensex.
Overall market breadth was positive. Out of the total 2,873 shares traded at BSE, 2,130 advanced, 688 declined while 55 remained unchanged.
BSE Bulk Deals to Watch - June 4 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
4/6/2009 511706 ACTION FIN MANISH DILIPBHAI SHAH S 43171 18.39
4/6/2009 532981 ANU LABS SAMIRKUMARDIPAKBHAISHAH B 920000 37.94
4/6/2009 532914 ARCOTECH LTD SHWETASHARMA B 589499 2.11
4/6/2009 532914 ARCOTECH LTD RAJAH PUKHRAJ JAIN S 835000 2.12
4/6/2009 506074 ARSHIYA INTL ABN AMRO BANK NV B 540744 121.44
4/6/2009 505506 AXON INFOTEC SAI KANAKAMAHALAKSHMI FINANCE PVT LTD S 3999 16.49
4/6/2009 531733 BAFNA SPINNI PUKHRAJHIRACHANDBAFNA S 700000 2.70
4/6/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD B 236098 6.55
4/6/2009 531682 CAT TECHNOL JMP SECURITIES PVT LTD B 160823 6.50
4/6/2009 531682 CAT TECHNOL S V ENTERPRISES B 293464 6.51
4/6/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD S 363862 6.53
4/6/2009 531682 CAT TECHNOL S V ENTERPRISES S 293464 6.57
4/6/2009 511636 DJS STOCK SH PADMAKANT DEVIDAS SECU.LTD S 30900 29.40
4/6/2009 504000 ELPRO INTERN FARIDABAD COMPANY LIMITED B 20238 372.00
4/6/2009 504000 ELPRO INTERN INDIA MAX INVESTMENT FUND LTD S 21801 371.84
4/6/2009 504701 GONTERM PEIP STATE BANK OF INDIA S 73965 31.80
4/6/2009 532836 GREMAC INFRA GUJARAT FREEFLOW SALTS REFINERY PVT LTD S 176622 55.24
4/6/2009 532836 GREMAC INFRA RISHIRAJ AGARWAL S 77000 55.36
4/6/2009 504176 HIGH ENERGY LAKSHMIRAJYAMUPPUTURI B 5000 136.90
4/6/2009 504176 HIGH ENERGY ALLURIBHARATHI S 5025 136.89
4/6/2009 532627 JP HYDROPOW OPG SECURITIES P LTD B 3145479 82.75
4/6/2009 532627 JP HYDROPOW OPG SECURITIES P LTD S 3145479 82.91
4/6/2009 516078 JUMBO BAG LT KRUPAL VIKRAMBHAI PATEL S 40637 32.19
4/6/2009 524826 JUPITER BIOS FAIRDEAL INFIN SERVICES PVT. LTD. B 156450 87.42
4/6/2009 524826 JUPITER BIOS FAIRDEAL INFIN SERVICES PVT. LTD. S 118900 87.75
4/6/2009 526209 K S OILS LTD CITIGROUP VENTURE CAPITAL INTL GROWTH PARTNERSHIP MAURITIUS LIMIT S 3000000 62.23
4/6/2009 532081 K SERA SERA NEWGEN INTERNATIONAL PVT LTD B 1500000 17.04
4/6/2009 532081 K SERA SERA S V ENTERPRISES B 1462612 16.73
4/6/2009 532081 K SERA SERA KII LTD S 1000000 17.00
4/6/2009 532081 K SERA SERA S V ENTERPRISES S 1463612 16.78
4/6/2009 532283 KASHYAP TEC JMP SECURITIES PVT LTD B 4055837 1.39
4/6/2009 532283 KASHYAP TEC JMP SECURITIES PVT LTD S 3660095 1.39
4/6/2009 523475 LOTUS CHOC C VSHASHIDHARKAMATH B 138298 21.00
4/6/2009 523475 LOTUS CHOC C JYOTI HARISH SHAH S 140000 21.00
4/6/2009 523373 MINI DIAMOND NAVPAD CONSULTANCY B 18000 6.80
4/6/2009 523373 MINI DIAMOND PINKESH A SHAH HUF S 18000 6.80
4/6/2009 590011 MOVING PICTU-PMS BHARATH KUMAR BANAVARA ESWARAIAH B 81176 5.51
4/6/2009 523670 NOIDA MEDI C JAYKPANDYA B 58912 14.88
4/6/2009 523670 NOIDA MEDI C KAMALCHANDMALJAIN S 63012 14.88
4/6/2009 523483 PACIFIC INDU GANGA JAMUNA FINANCIAL ADVISOR PVT LTD B 10000 292.68
4/6/2009 523483 PACIFIC INDU ASHOKA FINSTOCK LTD B 11536 284.82
4/6/2009 523483 PACIFIC INDU ASHOKA FINSTOCK LTD S 11536 292.66
4/6/2009 530695 PRIME PROPTY MINAL FINANCE PRIVATE LTD. B 123235 118.72
4/6/2009 520111 RATNAMA META ENAM SECURITIES DIRECT PVT.LTD. A/C. - ENAMPMS B 280004 76.00
4/6/2009 520111 RATNAMA META SIDDHESH CAPITAL MARKET SERVICES PVT.LTD. B 500000 76.00
4/6/2009 520111 RATNAMA META SIDDHESH CAPITAL MARKET SERVICES PVT.LTD. S 473655 87.75
4/6/2009 520111 RATNAMA META NOTZ STUCKI ET CIE S A A/C. ARUNA FUND S 1086878 75.97
4/6/2009 531952 RIBA TEXTILE HEMAL KETAN SHAH B 47003 71.52
4/6/2009 531898 SANGUINE MD SETU SECURITIES PVT LTD B 125252 4.16
4/6/2009 532886 SEL MANUF MAVI INVESTMENT FUND LIMITED S 100000 80.96
4/6/2009 526365 SHYAM STAR PRABHUBHAIDOBARIA S 55000 20.45
4/6/2009 512048 SPLASH MEDIA HITESHBABUBHAIDOBARIYA B 30000 42.00
4/6/2009 512048 SPLASH MEDIA BHANUMATIDHARAMRAJGIRI B 30000 42.00
4/6/2009 512048 SPLASH MEDIA STRATEGIC BRAND EQUITY LTD S 60000 42.00
4/6/2009 532249 SQL STAR INT CHIRAAYUSH STOCK CONSULTANTS PVT LTD S 150533 13.45
4/6/2009 523363 STER HOL RES INVESTRICKINDIA B 1300000 55.26
4/6/2009 523363 STER HOL RES ASHITABHAVINPAREKH S 1250000 55.05
4/6/2009 500404 SUN IR STEEL JMP SECURITIES PVT LTD B 1274194 26.20
4/6/2009 509930 SUPREM IND NANDKISHORE & CO S 152500 242.44
4/6/2009 519228 TEMPT.FOODS TAIB BANK A/C TSML B 200000 48.39
4/6/2009 590020 TERASOFTWARE CAMPHAR SEC.& ADV.P.LTD. B 48909 40.79
4/6/2009 590020 TERASOFTWARE RAJESHDINKARFOWKAR B 68797 40.52
4/6/2009 590020 TERASOFTWARE FAISALZUBAIRHAWA S 146464 40.16
4/6/2009 532765 USHER AGRO EUREKA STOCK & SHARE BROKING SERVICES LTD B 144722 35.40
4/6/2009 532765 USHER AGRO SWETA AMIT SHAH B 185136 34.43
4/6/2009 532765 USHER AGRO EUREKA STOCK & SHARE BROKING SERVICES LTD S 134722 36.43
4/6/2009 532765 USHER AGRO WILSONMEHTA S 513833 36.25
4/6/2009 532765 USHER AGRO HEMCHANDGANDHI S 550612 34.28
4/6/2009 532765 USHER AGRO SWETA AMIT SHAH S 185136 35.61
4/6/2009 531874 VENUS VENT CHANDRA SHEKHAR SUNIL BHATT B 73976 47.79
4/6/2009 531874 VENUS VENT SAROJBENBHARATBHAIPADIA S 35000 49.30
4/6/2009 531874 VENUS VENT VIJAY VELJIBHAI PADHARIA S 49722 47.50
4/6/2009 531874 VENUS VENT CHANDRA SHEKHAR SUNIL BHATT S 72118 49.15
4/6/2009 532360 VINTAGE CARD M K HARKUT B 3991 26.13
4/6/2009 532360 VINTAGE CARD BDS SHARE BROKERS PVT LTD S 3637 25.78
4/6/2009 501370 WALCHAND PF WALCHAND AND CO. LTD S 1500 1444.60
4/6/2009 521163 ZODIAC CLOTH RELIANCE CAPITAL ASSET.MGT.LTD.A/C.PMS B 85305 258.84
4/6/2009 521163 ZODIAC CLOTH EAST SAIL B 100000 255.00
4/6/2009 521163 ZODIAC CLOTH NOTZ STUCKI ET CIE S A A/C. ARUNA FUND S 264605 255.05
NSE Bulk Deals to Watch - June 4 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
04-JUN-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,260991,1148.34,-
04-JUN-2009,ADLABSFILM,Adlabs Films Limited,A TO Z STOCK TRADE PRIVATE LIMITED,BUY,294350,432.80,-
04-JUN-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,3060985,28.04,-
04-JUN-2009,ANGAUTO,ANG Auto Limited,KOOKMEN SECURITIES P LTD,BUY,44,55.75,-
04-JUN-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,3891073,54.66,-
04-JUN-2009,INDOWIND,Indowind Energy Limited,BP FINTRADE PRIVATE LIMITED,BUY,288601,44.75,-
04-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,11266984,27.85,-
04-JUN-2009,JPHYDRO,Jaiprakash Hydro-Power Li,PRB SECURITIES PRIVATE LTD.,BUY,2780863,83.50,-
04-JUN-2009,KALINDEE,Kalindee Rail Nirman (Eng,BP FINTRADE PRIVATE LIMITED,BUY,59747,188.53,-
04-JUN-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,BUY,641887,16.95,-
04-JUN-2009,KSERAPRO,K Sera Sera Productions L,NEWGEN INTERNATIONAL PVT LTD,BUY,1500000,17.00,-
04-JUN-2009,NILKAMAL,Nilkamal Limited,SWETA VIKASH SHAH,BUY,163334,105.00,-
04-JUN-2009,NUCLEUS,Nucleus Software Exports,KOTAK MAHINDRA MATUAL FUND,BUY,178000,112.98,-
04-JUN-2009,SATYAMCOMP,Satyam Computers Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,4960307,71.53,-
04-JUN-2009,SELMCL,SEL Manufacturing Company,KANUDIA CAPITAL & MANAGEMENT SERVICES PVT. LTD.,BUY,97757,84.00,-
04-JUN-2009,SUZLON,Suzlon Energy Limited,GENUINE STOCK BROKERS PVT LTD,BUY,7723070,132.18,-
04-JUN-2009,VISHALRET,Vishal Retail Limited,JMP SECURITIES PVT LTD,BUY,125149,91.09,-
04-JUN-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1810073,25.62,-
04-JUN-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,260991,1149.20,-
04-JUN-2009,ADLABSFILM,Adlabs Films Limited,A TO Z STOCK TRADE PRIVATE LIMITED,SELL,294350,432.87,-
04-JUN-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,3060985,28.02,-
04-JUN-2009,ALPSINDUS,Alps Industries Ltd.,BEAUMARIS INVESTMENTS LIMITED,SELL,320000,15.25,-
04-JUN-2009,ANGAUTO,ANG Auto Limited,KOOKMEN SECURITIES P LTD,SELL,65100,55.66,-
04-JUN-2009,ANGAUTO,ANG Auto Limited,PIVOTAL SECURITES PVT. LTD.,SELL,99000,57.89,-
04-JUN-2009,ANGAUTO,ANG Auto Limited,RAJASTHAN GLOBAL SECURITIES LTD,SELL,63265,56.63,-
04-JUN-2009,CLASSIC,Classic Diamonds (India),MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,219000,18.04,-
04-JUN-2009,GVKPIL,GVK Power & Infrastructur,OPPENHEIMER DEVELOPING MARKETS FUND,SELL,8091006,48.66,-
04-JUN-2009,IBREALEST,Indiabulls Real Estate Li,MORGAN STANLEY DEAN WITTER MAURITIUS COMPANY,SELL,2600000,237.14,-
04-JUN-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,3875313,54.60,-
04-JUN-2009,INDOWIND,Indowind Energy Limited,BP FINTRADE PRIVATE LIMITED,SELL,256084,44.77,-
04-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,9708116,27.80,-
04-JUN-2009,JPHYDRO,Jaiprakash Hydro-Power Li,PRB SECURITIES PRIVATE LTD.,SELL,2718363,83.58,-
04-JUN-2009,KALINDEE,Kalindee Rail Nirman (Eng,BP FINTRADE PRIVATE LIMITED,SELL,41037,188.39,-
04-JUN-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,SELL,196351,17.16,-
04-JUN-2009,KSERAPRO,K Sera Sera Productions L,KII LTD.,SELL,1500000,17.00,-
04-JUN-2009,NILKAMAL,Nilkamal Limited,ARISAIG INDIA FUND LTD,SELL,257464,105.24,-
04-JUN-2009,PSTL,Pyramid Saimira Theatre L,BHARTIA BACHAT LTD,SELL,175000,33.30,-
04-JUN-2009,SATYAMCOMP,Satyam Computers Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,4961807,71.50,-
04-JUN-2009,SELMCL,SEL Manufacturing Company,KANUDIA CAPITAL & MANAGEMENT SERVICES PVT. LTD.,SELL,97757,84.07,-
04-JUN-2009,SELMCL,SEL Manufacturing Company,MAVI INVESTMENT FUND LIMITED MM WARBURG BANK SCHWEIZAG,SELL,100000,81.80,-
04-JUN-2009,SELMCL,SEL Manufacturing Company,SHIVA SPINFAB PRIVATE LMITED,SELL,100000,84.00,-
04-JUN-2009,SUZLON,Suzlon Energy Limited,GENUINE STOCK BROKERS PVT LTD,SELL,7723070,132.17,-
04-JUN-2009,VISHALRET,Vishal Retail Limited,JMP SECURITIES PVT LTD,SELL,18710,91.10,-
04-JUN-2009,VISHALRET,Vishal Retail Limited,RAKHEE V. TODI,SELL,112100,91.10,-
04-JUN-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1811746,25.71,-
Turnover rises
June 2009 futures of Reliance Industries at premium
Nifty May 2009 futures were at 4583.75, at a premium of 11.1 points over the spot closing of 4572.65. Turnover in NSE's futures & options (F&O) segment rose to Rs 66932.8 crore from Rs 65165.46 crore on Wednesday, 3 June 2009.
Suzlon Energy June 2009 futures were at a discount at Rs 135.55 compared to the spot closing of Rs 136.90.
Reliance Industries (RIL) June 2009 futures were at a premium at Rs 2272.45 compared to the spot closing of Rs 2261.75.
Reliance Capital June 2009 futures were at a premium at Rs 1039 compared to the spot closing of Rs 1035.05.
In the cash market, the S&P CNX Nifty rose 41.95 points or 0.93% at 4572.65.
Post Session Commentary - June 4 2009
The domestic stock market made a smart turnaround in the final hours after a gap down opening to close the session with decent gains. The investors sentiments was boosted on the back of UPA government’s focus to revive the economic growth, which was disclosed in its agenda. This led the BSE benchmark index Sensex to cross the psychological 15,000 mark in the last hours of the session. Also the falling of the India inflation figure to 0.48% from the previous week annual rise of 0.61% also supported the sentiments.
The domestic key benchmark indices opened on a negative note tracking the weakness in the global markets but the market changed its gears after President Pratibha Patil in her first address to the joint session of both houses of the Parliament said, that the government will focus on sectors like small and medium enterprises (SMEs), exports, textiles, commercial vehicles, infrastructure and housing as they are adversely hit by the global financial meltdown. Further the government''s stake in public sector units (PSUs) will not fall below 51%. Also the firm European markets ahead of the interest rate decision from the Bank of England (BOE) and the European Central Bank (ECB) later in the day boosted the investors’ sentiments in the later half. Moreover, in the global arena, the US Markets closed negative. Some of the economic data like ISM and ADP employment report were less with surprise and inline with expectations. The ISM Services Index for the month of May recorded at 44.0, and was in-line with expectations, while factory orders for April increased 0.7%, below the forecasted figure of 0.9% increase. Nonfarm payrolls report from the ADP Employment Report showed 532,000 job losses for May which was also inline with the consensus forecast. However, benchmark indices witnessed a lot of volatility during the session with BSE Sensex finally closed above 15,000 mark and NSE Nifty above 4,570 mark. From sectoral front, investors on-loaded position across the sectors led by Realty, Capital Goods, Health Care and Power index while the Metal index face the heat.
Inflation fell to 0.48 per cent for the week ended May 23 lower than previous week annual rise of 0.61 per cent in the previous week even though the prices of essential food items like fruit, tea, cereals and pulses continued to be expensive. The wholesale price-based inflation was 8.90 per cent during the corresponding week a year ago. During the week, the prices of the maize, arhar, spices and fruit went up while ragi and barley declined.
Among the Sensex pack 21 stocks ended in positive territory and 9 in negative. The market breadth indicating the overall health of the market remained strong as 2,130 stocks closed in green while 688 stocks closed in negative and 55 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 137.78 points or 0.93% at 15,008.68 and NSE Nifty closed up by 41.95 points or 0.93% at 4,572.65. The BSE Mid Caps and Small Caps closed with gains of 120.54 and 140.27 points at 5,446.08 and 6,525.19. The BSE Sensex touched intraday high of 15,026.03 and intraday low of 14,599.43.
Gainers from the BSE Sensex pack are Ranbaxy Labs (6.06%) followed by Sun Pharma (4.14%), HUL (3.73%), Reliance Infra (3.39%), L&T (3.30%) and DLF (3.30%).
Losers from the BSE Sensex pack are Sterlite Inds (5.91%), Hindalco Inds (3.54%), Tata Steel (3.53%), Wipro (1.26%) and Infosys Tech (1.15%).
On the global markets front the Asian markets which opened before the Indian market, closed in red. Seoul Composite, Taiwan Weighted, Nikkei, Hang Seng closed lower by 2.60%, 1.55%, 0.75% and 0.40% at 1,378.14, 6,786.06, 9,668.96 and 18,502.77.
European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading higher by 0.68% at 5,088.84 and in London FTSE 100 is trading flat at 4,382.83.
The BSE Realty index increased (3.29%) or 130.98 points to close at 4,116.99. Main gainers are Sobha Developers (9.99%), Mahindra Life (8.56%), Omaxe Ltd. (5.72%), Akruti City (4.99%) and Orbit Co (4.98%).
The BSE Capital Goods index surged (3.23%) or 392.30 points at 12,551.73. Scrips that mostly gained are Lakshmi Machine Works (28.60%), Everest Kanto (5.50%), BEML (5.64%), Punj Lloyd (4.69%) and L&T (3.33%).
The BSE Health Care index also ended higher by (2.60%) or 91.53 points at 3,610.24. Divi''s Lab (7.07%), Ranbaxy Laboratories (6.06%), Glenmark Pharma (4.54%), Sun Pharma (4.14%) and Dr. Reddy (4.01%) ended in positive territory.
The BSE Power index grew (2.30%) or 67.62 points to close at 3,003.22. Gainers are Torent Power (10.23%), Lanco Infra (9.41%), Suzlon Energy (8.19%), Neyivelli Lignite (5.71%) and Reliance Power (4.56%).
The BSE Bankex improved (1.32%) or 106.58 points at 8,164.65. Gainers are IDBI Bank (9.80%), AXIS Bank (2.60%), Kotak Bank (2.52%), ICICI Bank (2.02%) and yes Bank (1.92%).
The BSE FMCG index gained (0.94%) or 27.48 points to close at 2,935.60. Gainers are Marico (7.46%), Ruchi Soya (7.20%), Colgate Palmolive (7.17%), HUL (3.73%) and Nestle (1.96%).
The BSE Metal decreased (2.11%) or 251.67 points at 11,699.53. Losers are Sterlite Industries (5.91%), Nalco (3.73%), Tata Steel (3.53%), Hindalco Industries (3.54%), Sesa Goa (1.92%) and SAIL (1.86%).
Gujarat NRE surged 4.99% to close at Rs56.80. The company on Thursday said that it''''s Australian listed subsidiary- Gujarat NRE Minerals will acquire Australia-based Rey Resources Ltd in an all the stock deal. Gujarat NRE Minerals intends to make an off-market takeover offer for acquiring all the issued shares in Rey.
ICICI Bank galloped 2.02% to Rs734.25. The bank has announced a reduction of 0.50% in its Floating Reference Rate (FRR) applicable to floating rate retail loans (including floating rate home loans) with effect from June 05, 2009. The revised FRR will be 12.75% p.a. as against 13.25% p.a. at present. All the existing floating rate retail loan customers will be benefited by the reduction in FRR.
Bank of Baroda fell 2.02% to Rs411.55. The bank has informed that the Bank of Baroda, Indian Overseas Bank and Andhra Bank on June 04, 2009 have signed, a Joint Venture Agreement for setting up a Banking Subsidiary in Malaysia. The subsidiary is proposed to be named as India BIA Bank (Malaysia) Bhd. The shareholding pattern would be Bank of Baroda 40%, Indian Overseas Bank 35% and Andhra Bank 25%.
HCL Tech grew 0.52% to close at Rs174.40. HCL GmbH Germany, a 100% subsidiary of HCL Technologies Ltd. (HCL), a leading global IT services provider, has entered into a multi-year, multi-regional SAP ERP support services and projects engagement with The Linde Group, a world-leading gases and engineering Company.
Parsvnath Developers Ltd shot up 4.95% to close at Rs105.95. The company, Indias leading Real Estate Company having diversified portfolio has bagged a contract from Delhi Metro Rail Corporation (DMRC) for construction of a residential proj
Market overcomes early blues, soars 138 points
The market witnessed a dramatic turnaround in afternoon, as substantial buying at lower levels helped the index scale above 15000 at the close and clock gains of more than 150 points during the last hour of the trading session. The Sensex began the trading session 116 points lower at 14755 and shed another 156 points to slip below the 14600 mark and touch the day's low of 14599 amid weak US and Asian markets. While the market languished in the negative territory and was on a recovery mode, the index rolled back into the green in late trades and surged to an intra-day high of 15026 on fresh buoyancy in heavyweight, realty, capital goods and health care stocks. The Sensex finally closed the session with gains of 0.93% and was up 138 points at 15009, while Nifty advanced 42 points to close at 4573.
The market breadth was positive. Of the 2,873 stocks traded on the BSE, 2,130 stocks advanced, 688 stocks declined and 55 stocks ended unchanged. Out of the 13 sectoral indices, 10 indices ended higher while 3 indices eased on profit taking. The BSE Realty gained 3.29% followed by BSE CG (up 3.23%), BSE HC (up 2.60%) and BSE Power (up 2.30%). However, BSE Metal, BSE CD and BSE IT ended at lower levels.
Heavyweights participated in the late rally and notched up significant gains. Ranbaxy Laboratories soared 6.06% at Rs282.55, Sun Pharmaceutical Industries advanced 4.14% at Rs1306.65, Hindustan Unilever added 3.73% at Rs248.65, Reliance Infrastructure scaled up 3.39% at Rs1,273.45, Larsen & Toubro rose 3.30% at Rs1,455.90 and DLF jumped 3.30% at Rs416.15. Maruti Suzuki India, Reliance Communications, Grasim Industries, JP Associates, ACC, Tata Motors, Bharti Airtel and ICICI Bank gained over 2% each. Among laggards, Sterlite Industries dropped 5.91% at Rs661.30, Hindalco Industries lost 3.54% at Rs89.85, Tata Steel declined by 3.53% at Rs470.70 and Wipro was marginally down at Rs390.90.
Realty stocks registered strong gains in the late rally. Sobha Developers hit the upper limit of 10% at Rs247.15. While Mahindra Lifespace Developers advanced 8.56% at Rs327.95, Omaxe gained 5.72% at Rs114.65. Akruti City, Orbit Corporation, Parsvnath Developers and Housing Development and Infrastructure Ltd were up over 4% each. Among capital goods stocks Lakshmi Machine Works, Suzlon Energy, Kalptaru Power Transmission, Areva T&D India, BEML, ABB, Everest Kanto Cylinder, Walchand and Punj Lloyd gained 4-8% each.
Over 3.86 crore share of Satyam Computer Services (Satyam) changed hands on the BSE followed by Reliance Natural Resources Ltd (RNRL; 3.33 crore shares), Suzlon Energy (3.30 crore shares), Ispat Industries (2.87 crore shares) and Unitech (2.50 crore shares).
Suzlon Energy was the most actively traded counter on the BSE with a turnover of Rs435 crore followed by Reliance Capital (Rs342 crore), RNRL (Rs304 crore), Satyam (Rs275 crore) and Reliance Industries (Rs255 crore).
FIIs turn sellers
Sold shares worth a net Rs 316.20 crore on Wednesday, 3 June 2009 after buying for the five consecutive days.
Foreign institutional investors (FIIs) sold shares worth a net Rs 316.20 crore on Wednesday, 3 June 2009, compared to a buying of a net Rs 209.30 crore on Tuesday, 2 June 2009. The FIIs had bought shares worth Rs 4,227.40 crore in the last five consecutive days.
FII outflow of Rs 316.20 crore on 3 June 2009 was a result of gross purchases Rs 3,423.80 crore and gross sales Rs 3,740 crore. The BSE 30-share Sensex fell 4.01 points, or 0.03%, to 14,870.90 on that day.
FII inflow in calendar year 2009 totaled Rs 21,818.80 crore (till 3 June 2009).
There are a total of 1662 foreign funds registered with the Securities & Exchange Board of India (Sebi)
Sensex settles above 15,000 level; at nine-month high
Key benchmark indices settled at multi-month highs as buying frenzy in late trade helped indices reverse early losses caused due to weak global cues. The benchmark index BSE Sensex finished above the psychological 15,000 mark as investors mopped equities after the newly elected UPA government in its agenda disclosed about reviving economic growth. The BSE 30-share Sensex gained 137.78 points, or 0.93%, to 15,008.68 after sliding to day's low of 14,601.91 and surging to high of 15,026.03 in a highly volatile trade.
President Pratibha Patil addressed to a joint session of both houses a little while ago today, 4 June 2009 formally disclosing the agenda of the UPA coalition government. She said that the government would aim to revive economic growth with higher investments in sectors such as infrastructure, while adhering to fiscal prudence. Patil said steps would be taken to encourage foreign investment inflows, list shares of state-run firms and infuse more capital in banks. The government's immediate priority must be to focus on management of the economy that will counter the effect of the global slowdown, she added.
Patil said the new regime will develop a roadmap for listing public sector units, co-ordinate with other countries to bring back illegal money stashed in secret bank accounts, recapitalise public sector banks, and bring in the pension reforms bill.
On the economic front, the government's immediate focus would be on sectors that are adversely hit, especially small and medium enterprises, exports, textiles, commercial vehicles, infrastructure and housing.
The Sensex jumped 5361.37 points or 55.57% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 6848.28 points or 83.92%. The solid surge in the market materialised as foreign funds' pumped Rs 20,606.80 crore in May 2009 and their inflow in calendar year 2009 totaled Rs 22,146.60 crore till 2 June 2009.
There are reasons to believe that the recent strong rally may continue. 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.
European markets were trading firm today, 4 June 2009 ahead of interest rate decisions. Key benchmark indices in UK, Germany and France were up by between 0.21% and 0.76%.
Investors are awaiting the interest rate decisions from the Bank of England (BOE) and the European Central Bank (ECB) later in the day. The ECB is set to keep interest rates on hold with markets keen to see the details of its covered bond purchase plan as well as clues on whether rates may yet be cut further. The BOE is expected to keep interest rates at a record low 0.5% and refrain from expanding its quantitative easing plan.
Eurozone GDP fell 2.5% quarter-on-quarter in the first quarter of 2009, data confirmed on Wednesday, 3 June 2009. The annual drop was revised down to 4.8%, from an earlier reading of 4.6%.
Asian markets declined today, 4 June 2009, with investors indulging in profit taking after recent sharp gains. Weak economic data from the U.S. also hurt sentiment. Key benchmark indices in Japan, China, Singapore, South Korea, Hong Kong and Taiwan were down by between 0.40% and 2.60%.
Among economic news, according to the quarterly survey by the Ministry of Finance, Japanese business investment fell by 25.3% from a year earlier during the January-March period 2009, marking the eighth straight quarter of decline. Economists closely watch the capital investment figure because the government will use it in revising the preliminary first-quarter gross domestic product data, which showed a record 15.2% contraction at an annualized pace. Corporate investment in factories and equipment account for around 15% of Japan's GDP.
Trading in US index futures showed the Dow could rise 51 points at the opening bell on Thursday, 4 June 2009.
US markets slipped on Wednesday, 3 June 2009, the major U.S. averages snapped their four-day winning streak overnight, as traders chose to take profits on the back of some discouraging economic data. The U.S services sector contracted for the eighth straight month in May and employment data from the world's biggest economy has also turned out to be a bit disappointing.
The Dow Jones industrial average slipped 65.63 points, or 0.75%, at 8,675.24. The Standard & Poor's 500 Index fell 12.98 points, or 1.37%, at 931.76 and the Nasdaq Composite index declined 10.88 points, or 0.59%, at 1,825.92.
Reports on the job market, factory orders and the services sector of the US economy were in focus, along with congressional testimony from Federal Reserve Chairman Ben Bernanke.
Comments by the U.S. Fed Chairman Ben Bernanke that US budget deficits threaten financial stability and the government could not continue indefinitely to borrow at the current rate to finance the shortfall also affected investor sentiment.
Private-sector employers cut 532,000 jobs in May 2009 after paring 545,000 in April 2009, according to payroll-services firm ADP. Expectations were for 525,000 cuts. The Institute for Supply Management's (ISM) services index improved to 44 in May 2009 from 43.7 in April 2009, but just missed expectations. It was still below 50, indicating contraction. Also factory orders rose 0.7% in April 2009, an improvement over the downwardly revised 1.9% drop in March 2009 but shy of expectations
Closer home, 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.
Finance Minister Pranab Mukherjee is likely to present the Union Budget in the first week of July 2009 with focus on ‘Aam Admi' while providing special attention to sectors hit hard by global crisis. Railway Budget for the year 2009-10 would be presented on 1 July 2009 followed by Economic Survey on 2 July 2009.
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.
Congress candidate Meira Kumar was elected Speaker of the 15th Lok Sabha unanimously on Wednesday, 3 June 2009. Kumar is the first woman to be elected as the Speaker of the Lok Sabha. The first session of the 15th Lok Sabha on Monday, 1 June 2009. The session will last till 9 June 2009. In all, the Parliament session will have seven sittings.
The BSE 30-share Sensex rose 137.78 points, or 0.93%, to 15,008.68, its highest closing since 2 September 2009. The Sensex opened 115.82 points lower at 14,755.08. At the day's low of 14,601.91, the Sensex lost 268.99 points in early afternoon trade. The Sensex gained 155.13 points at the day's high of 15,026.03 in midafternoon trade
The S&P CNX Nifty shot up 41.95 points, or 0.93%, to 4,572.65 its highesr closing since 11 August 2009. Nifty June 2009 futures were at 4583.75, at a premium of 11.1 points over the spot closing. Turnover in NSE's futures & options (F&O) segment rose to Rs 66932.8 crore from Rs 65165.46 crore on Wednesday, 3 June 2009.
The market breadth, indicating the overall health of the market, was strong. On BSE, 2111 shares rose as compared with 716 that declined. A total of 55 shares remained unchanged.
The BSE Mid-Cap index rose 2.26% to 5,446.08 and the BSE Small-Cap index advanced 2.20% to 6,525.19. Both these indices outperformed the Sensex
BSE clocked a turnover of Rs 9118 crore as compared with Rs 9,461.31 crore on Wednesday, 3 June 2009
Most sectoral indices on BSE displayed logged gains. The BSE FMCG index (up 1.09%), the BSE Power index (up 2.30%), the BSE Capital Goods index (up 3.23%), the BSE Healthcare index (up 2.60%), the BSE PSU index (up 1.88%), the BSE Realty index (up 3.29%), the BSE Bankex (up 1.32%) outperformed the Sensex
The BSE TECk index (up 0.82%), the BSE Metal index (down 2.11%), BSE Consumer Durables index (down 0.55%), the BSE Auto index (up 0.46%), The BSE IT index (down 0.52%), the BSE Oil & Gas index (up 0.31%), underperfomed the Sensex
Among the 30-member Sensex pack, 21 rose while the rest slipped.
Pharma and FMCG companies dominated the list of gainers on defensive buying. India's largest pharma company by sales Ranbaxy Laboratories surged 6.27% to Rs 283.10 and was the top gainer from the Sensex pack
Sun Pharma (up 2.91%), Divi's Labs (up 7.78%), Dr Reddy's Labs (up 4.78%), rose from the pharma pack.
India's largest FMCG company by sales Hindustan Unilever gained 3.65% to Rs 248.50 and India's largest cigarette company by sales ITC rose 0.57% to Rs 204.15
FMCG shares were also boosted by reports that key product segments such as soaps, detergents, toothpastes, biscuits, snack foods and soft drinks saw volume growth of more than 20% in April-May 2009 due to stable prices and promotional activities
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 0.23% to Rs 2250. The stock slipped to a day's low of Rs 2160 after its German unit Trevira, a specialty polyester manufacturer, went bankrupt. Reliance Industries had acquired Trevira five years ago for Rs 440 crore. This acquisition in 2004 had propelled Reliance to the position of the world's largest polyester fibre and yarn producer. The announcement was made after market hours yesterday, 3 June 2009.
India's largest private sector bank by net profit ICICI Bank vaulted 2.82% to Rs 740 despite a 6% slump in its ADR on Wednesday, 3 June 2009. The stock recovered from day's low of Rs 651.25.
ICICI Bank today, 4 June 2009 said it will cut lending rates by 50 basis points from Friday, 5 June 2009. The benchmark advance rate, or the rate that it charges its top customers, will drop to 15.75% from 16.25%. It also cut floating reference rate (FRR) applicable to floating rate retail loans (including floating rate home loans) by 50 basis points. The revised FRR will be 12.75% from 13.25%. All the existing floating rate customers to benefit from the cut.
Infrastructure shares advanced after President Pratibha Patil disclosed today, 4 June 2009 the UPA coalition government would aim to revive economic growth with higher investments in infrastructure sector. L&T (up 3.59%), GVK Power Infrastructure (up 1.47%), Punj Lloyd (up 6.03%), Lanco Infratech (up 9.16%), GMR Infrastructure (up 2.40%), Reliance Infrastructure (up 3.11%), Bhel (up 1.79%), and Jaiprakash Associates (up 2.70%), gained.
Maruti Suzuki India (up 2.71%), DLF (up 3.26%) and ACC (up 2.58%), gained
Realty stocks gained 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 3.26%), Unitech (up 2.32%), Shobha Developers (up 9.99%), Parsvnath Developers (up 4.95%), Indiabulls Real Estate (up 2.97%), Housing Development & Infrastructure (up 4.73%), advanced.
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).
India's second largest listed cellular services provider by sales Reliance Communications (RCom) spurted 2.22% to Rs 340.30 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 metal shares were weak on profit booking after the sharp recent surge and on fears of waning global demand post poor economic data from the US. India's largest aluminium and copper marker by sales Sterlite Industries lost 6.24% to Rs 659 and was the top loser from the Sensex pack
Tata Steel (down 3.46%), Hindalco Industries (down 3.17%), Sail (down 2%), Sesa Goa (down 2.10%) and Hindustan Zinc (down 2.65%), edged lower
National Aluminum Company fell 4.15% to Rs 342 after its net profit fell 80% to Rs 83 crore in Q4 March 2009 over Q4 March 2008 on lower aluminum prices. The company announced the result after market hours on Wednesday, 3 June 2009.
India's top truck marker by sales Tata Motors rose 1.80% to Rs 368.50, extending yesterday's 3.68% rise after global credit rating agency Moody's on Tuesday, 2 June 2009 revised upwards outlook for its low investment grade rating on from negative to stable after the company successfully refinanced a bridge loan for Jaguar and Land Rover acquisition. Despite the sharp rise, the stock is off day's high of Rs 378.70
However, India's top tractor maker by sales Mahindra & Mahindra (M&M) lost 1.22% to Rs 689 on profit booking after surging sharply recently
Oil exploration firms slipped after US light crude oil for July delivery fell $2.43 to $66.12 a barrel on the New York Mercantile Exchange on Wednesday, 3 June 2009. Fall in oil prices affects realization from crude sales of oil exploration firms.
India's largest oil exploration firm by sales ONGC slipped 0.34% to Rs 1165 and India's second largest oil exploration firm by sales Cairn India lost 2.78% to Rs 249.90
India's second largest software firm by sales Infosys Technologies slipped 1.27% to Rs 1625 despite reports the firm is looking at three to four companies with annual revenue of $100 million to $200 million in the U.S. and Europe for a potential acquisition.
Airline stocks fell after reports indicated the government is in no hurry to remove the bar on foreign airlines buying stakes in Indian carriers. Jet Airways (down 2.27%), SpiceJet (down 0.95%), slipped. However Kingfisher Airlines rose 1.41%. Reports quoting Aviation Minister Praful Patel said there was no bailout package on cards for the airline industry, which is saddled with losses.
Fertiliser shares gained on hopes of sops from the government in the Union Budget and speculative build-up of positions ahead of the monsoon season. Chambal Fertilisers (up 4.34%), Tata Chemicals (up 5.12%), RCF (up 2.94%), and Nagarjuna Fertilisers (up 3.03%), rose.
PSU shares gained on hopes of positive announcement on disinvestment front in President Pratibha Patil's address to a joint session of both houses today, 4 June 2009 as she formally discloses the agenda of the UPA coalition government.
Engineers India (up 13.97%), Dredging Corporation (up 5.39%), HMT (up 5%), Beml (up 6.75%), and Balmer Lawrie (up 3.86%), surged.
MMTC climbed 10% to Rs 31,098.25 on hopes the government may divest substantial stake in the company. The government holds 99.33% stake in MMTC as on March 2009.
Suzlon Energy was the top traded counter on BSE with turnover of Rs 435.68 crore, followed by Reliance Capital (Rs 342.21 crore), Reliance Natural Resources (Rs 304.82 crore), Reliance Industries (Rs 255.52 crore), and Unitech (Rs 239.93 crore).
Satyam Computer topped the volume chart on BSE clocking volume of 3.85 crore followed by Reliance Natural Resources (3.31 crore shares), Suzlon Energy (3.29 crore shares), Ispat Industries (2.86 crore shares) and Unitech (2.49 crore shares).
Suzlon Energy spurted 7.55% to Rs 136 on reports the company is close to raising Rs 600 crore from private equity investors to finance the purchase of Portuguese energy firm Martifier's stake in its subsidiary REpower. Suzlon owns about 83% in REpower.
Indage Vintners was locked at upper limit of 5% at Rs 110.05 on reports Japanese beer maker Asahi Breweries and an Indian entrepreneur are in the race to buy a major stake in the company.
Kinetic Engineering was locked at upper limit of 5% at Rs 55.65 after winning an order for supplying specialised transmission gear assemblies to an unspecified European automobile manufacturer.
Asian Electronics hit 5% upper circuit at Rs 47.45 after company said its board of directors will meet on 10 June 2009 to consider raising funds through various routes. The company announced the fund raising plans after market hours on Wednesday, 3 June 2009.
Anu's Laboratories rose 2.78% to Rs 37 after its board recommended 1:1 bonus issue. The company announced the bonus issue before market hours today, 4 June 2009.
Torrent Power spurted 10.23% to Rs 157.35 on reports the company has submitted a proposal to Gujarat Electricity Regulatory Commission (GERC) for hiking tariff by 15%.
Global weakness may weigh on local indices
The market is moving in tune with global markets and the weak Asian indices in current trades coupled with overnight fall in the US markets is likely to weigh on the local indices. Nervousness in the market is likely to continue after the Sensex reporting losses in yesterday's trades. Among the key local indices, the Nifty could decline to 4500 on the downside while on the upside there is a near term resistance at 4580. The Sensex has a likely support at 14700 and may face resistance at 15000.
US indices slipped Wednesday, giving back earlier gains, as a four-session advance lost steam, after mixed readings on the economy and ahead of retail sales and labor market reports due later this week. While the Dow Jones shed 66 points at 8675, the Nasdaq was down 11 points to close at 1824.
Among Indian ADRs except few all had a weak outing on US bourses. Patni Computer tumbled over 8% follwed by Rediff lost 7.78%, while ICICI Bank, Infosys, Wipro and HDFC Bank dropped around 1-5% each. While Satyam gained 22.91%, MTNL moved up 5.47% and VSNL ended with marginal gain of 0.26%.
Crude oil prices lost, with the Nymex light crude oil declined $2.43 at $66.12 per barrel. In the metals segment, the Comex gold for August series lost $18.80 to settle at $965.60 an ounce.
Pre Session Commentary - June 4 2009
Today domestic markets are likely to open negative and subdued on the back of negative cues from US and other Asian markets. After yesterday’s lackluster trade one could guess the phase of consolidation happening across global markets. There is hardly any specific news to drive and guide the market sentiments. Traders would once again trade with a load of cautiousness, thus keeping the benchmark indices at a range bound level. However stock specific buying would continue along with pick in Mid cap and small cap basket.
On Wednesday, the domestic markets closed flat after a volatile trading session. After a phenomenal gap up opening, the domestic markets started traded firm till the mid of the trading session. However, as the Asian and European markets stated trading with losses the negative sentiments pulled the frontline stocks at domestic level. Towards the end, late buying helped benchmark indices to close flat. Sectors like FMCG, CD, HC and Metal inclined by 4.19%, 4.04%, 2.28% and 1.79% respectively. On the other hand, Mid cap and Small cap stocks were the out performers for the day with gains of 1.50% and 2.11% respectively. We expect the markets to be trading range bound.
The BSE Sensex closed flat at 14,870.90 and NSE Nifty ended flat at 4,530.70. BSE Mid Caps and Small Caps closed with gains of 78.86 points and 131.94 points at 5,325.54 and 6,384.92 respectively. The BSE Sensex touched intraday high of 15,046.43 and intraday low of 14,733.59.
On Wednesday, the US Markets closed negative. After continuous positive trend the US markets paused to close nearly flat after a broad based selling. Some of the economic data like ISM and ADP employment report were less with surprise and inline with expectations. The ISM Services Index for the month of May recorded at 44.0, and was in-line with expectations, while factory orders for April increased 0.7%, below the forecasted figure of 0.9% increase. Nonfarm payrolls report from the ADP Employment Report showed 532,000 job losses for May which was also inline with the consensus forecast. The layoffs seem to have slowed however apprehensions about the consumer spending are still unavoidable. There are expectations that the consumer spending is likely to improve as the Fed Chairman Bernanke stated during his testimony before the House Budget Committee that the overall economic activity is likely to rebound during the second half of this year. The US light crude oil for July delivery declined by 3.6% to settle at $66.05 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed low by 65.63 points at 8,675.24, the NASDAQ Composite (RIXF) index declined by 10.88 points to close at 1,825.92 and the S&P 500 (SPX) fell 12.98 points to close at 931.76.
Indian ADRs drag on Wednesday barring a couple of stocks. In Banking space, ICICI Bank was down 5.6% and HDFC Bank was down. In IT space, Patni Computers was down 8.77%, Infosys was down 2.38%, Wipro was down 2.48% while Satyam Computers ended higher 22.91%. In Telecom space, Tata Communication was up 0.26% and MTNL was up 5.47%. In other sectors, Sterlite Industries was down 2.29%, Tata Motors was down 0.29% at and Dr Reddy''s Labs was down 0.08%.
Today major stock markets in Asia are trading negative. Hang Seng is low by 263.01 points at 18,313.46. Shanghai Composite is low by 38.71 points at 2,739.88. Japan''s Nikkei is also trading low by 39.62 points at 9,702.05. Strait Times is also low by 11.62 points at 2,372.20. KLSE Composite is low by 8.22 points at 1,055.40.
The FIIs on Wednesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 4,067.60 Crore and gross debt purchased stood at Rs 2119.70 Crore, while the gross equity sold stood at Rs 3,858.30 Crore and gross debt sold stood at Rs. 353.60 Crore. Therefore, the net investment of equity and debt reported were Rs 209.30 Crore and Rs 1,766.10 Crore respectively.
On Wednesday, the partially convertible rupee closed at 47.07/08 per dollar, 0.1% weaker than it previous close at 47.02/03. The rupee fell due to lackluster trading in local stock markets.
On BSE, total number of shares traded were 87.46 Crore and total turnover stood at Rs 9,461.31 Crore. On NSE, total number of shares traded was 169.85 Crore and total turnover was Rs 26,272.58 Crore.
Top traded volumes on NSE Nifty – Unitech with 102114423 shares, Suzlon Energy with 89377325 shares, Reliance with 16224312 shares, Hindalco with 15918768 shares, followed by Tata Steel with 15299244 shares.
On NSE Future and Options, total number of contracts traded in index futures was 632256 with a total turnover of Rs 13,633.73 Crore. Along with this total number of contracts traded in stock futures were 4912.36 with a total turnover of Rs 28,913.44 Crore. Total numbers of contracts for index options were 881202 with a total turnover of Rs 20,381.26 Crore and total numbers of contracts for stock options were 38252 and notional turnover was Rs 2,237.04 Crore.
Today, Nifty would have a support at 4,465 and resistance at 4,569 and BSE Sensex has support at 14,765 and resistance at 15,085.
Market seen consolidating on weak global cues
Key benchmark indices are seen lower mirroring weak global markets. The SGX Nifty futures for June 2009 expiry lost 34 points in Singapore. Also profit booking might emerge after a sharp recent surge in which the Sensex jumped 5223.59 points or 54.14% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 6710.50 points or 82.23%. Investors will keenly watch President's address to the Lok Sabha on 4 June 2009, which will unveil the new agenda of the government.
However there are reasons to believe that the recent strong rally may continue. 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.
Congress candidate Meira Kumar was elected Speaker of the 15th Lok Sabha unanimously on Wednesday, 3 June 2009. Kumar is the first woman to be elected as the Speaker of the Lok Sabha. The first session of the 15th Lok Sabha on Monday, 1 June 2009. The session will last till 9 June 2009. In all, the Parliament session will have seven sittings.
Asian markets were trading lower today, 4 June 2009. Nikkei was down 0.27%, Hang Seng fell 1.43%, Kospi declined 1.10% and Shanghai Composite slipped 1.15%.
US markets slipped on Wednesday, 3 June 2009 on reports of 5,32,000 private-sector employees being axed and fall in crude oil prices fueled concerns of economic recovery.
The Dow Jones industrial average fell 0.75% to end at 8,675.28, the Nasdaq Composite Index was down 0.59% at 1,825.92 and the Standard & Poor's 500 Index shed 1.37%.
Key benchmark indices saw divergent trend for the second running day on Wednesday, 3 June 2009 as the Sensex ended with marginal loss while the S&P CNX Nifty settled slightly higher.
The BSE 30-share Sensex fell 4.01 points, or 0.03%, to 14,870.90 to end its five day winning streak. It had gained 1285.68 points or 9.46% in five trading days to 14,874.91 on 2 June 2009 from 13589.23 on 26 May 2009.
However, the S&P CNX Nifty rose 5.45 points, or 0.12%, to 4,530.70, its highest closing since 12 August 2008.
As per the provisional figures on the NSE, foreign institutional investors (FIIs) bought shares worth Rs 32.80 crore on Wednesday, 3 June 2009 while domestic institutional investors purchased shares worth Rs 52.89 crore.
A dull day at Wall Street
Indices linger in the red for the entire day despite mixed batch of economic data
US stocks ended in the red on Wednesday, 03 June, 2009. Despite a couple of mixed economic reports, the indices failed to move up into the green even for once. It was mainly the materials and energy sectors that got hammered because of the sudden surge in dollar index today. Fed Chairman Bernanke spoke before the House Budget Committee today morning and stated that inflation is likely to fall over the next year, and overall economic activity is expected to turn up later this year. The expected remarks did not bring any major change in market movements today.
The Dow Jones Industrial Average ended lower by 65.6 points at 8,674. The Nasdaq Composite Index, ended lower by 11 points at 1,825. S&P 500 ended lower by 13 points at 931. But the Dow managed to recover from the session lows. At one point during the day, Dow had dropped by almost 129 points.
All the ten sectors ended in the red today led by the materials and energy sectors.
The ADP employment report stated on Wednesday, 03 June, 2009 that the U.S. private sector eliminated 532,000 net jobs in May, 2009, the fewest jobs lost since November, 2008. Goods producing industries cut 267,000 jobs while services cut 265,000. Manufacturing firms cut 149,000 positions, the 39th consecutive decline. Construction firms shed 108,000 jobs, the 28th straight monthly decline. Financial firms cut 32,000 jobs, the 18th straight decline.
The report also stated that employment in the private sector has fallen by 5.86 million since the recession began in December 2007. The April ADP index was revised to a decline of 545,000 from a decline of 491,000 previously reported. But the pace of job cutting has slowed in recent months, from an average of 691,000 in the first three months of the year to 539,000 over the past two months.
In a separate report, the Commerce Department reported on Wednesday, 03 June, 2009 that orders for U.S.-made factory goods rose by 0.7% in April, 2009, more or less in line with expectations. Excluding transportation, however, orders were up just 0.1% in April. Taking out defense goods, factory orders climbed by 0.3%. New orders for manufactured goods are now up in two of the last three months. They fell by 1.9% in March, 2009 but rose by 0.7% in February, 2009.
Separately, the ISM Services Index for May came in at 44, and was essentially in-line with expectations.
Crude prices dropped substantially on Wednesday, 03 June, 2009 as energy department reported sudden rise in crude inventories for last week. Market was expecting a decline in crude inventories. Prices also fell today due to the firming up of the dollar. On Wednesday, crude-oil futures for light sweet crude for July delivery closed at $65.7/barrel (lower by $2.86 or 4.2%).
EIA reported today that U.S. commercial crude inventories for the week ended 29 May rose to 366 million barrels, up 2.9 million barrels. Market was expecting a decline to the tune of 2 million barrels.
In the currency market on Wednesday, the U.S. dollar index, a gauge of the greenback against six major currencies, rose as much as 1.3%, following a 6.1% drop in May. It was the first increase for the dollar in five sessions. The dollar rose today against the euro after data showed the European economy shrank 2.5% in the first quarter.
Other than a few earning reports, on the economic front, weekly initial jobless claims and the first quarter productivity report are expected at 8.30ET tomorrow. Fed Chairman Bernanke will give opening remarks at a Fed Conference at 8.45ET.
Daily News Roundup - June 4 2009
M&M and Tata Motors figure amongst the global list of firms being considered by General Motors for a possible sale of small car brand Saturn. (ET)
Suzlon is planning to raise Rs6bn from private equity investors to fund the acquisition of RE Power. (ET)
Tech Mahindra is looking to pre-pay Rs3bn loan taken by Satyam in February 2009. (ET)
Tata Motors has bagged an order to supply 4,689 buses for the JNNRUM project. (BL)
DLF has put its Andheri (Mumbai) project on the block. (ET)
GVK Power is planning to raise Rs25bn via the QIP route. (ET)
Reliance Industries has stopped exporting petroleum products to Iran. (ET)
Reliance Industries’ German textile arm Trevira has filed for bankruptcy. (ET)
BHEL bags Rs3.75bn order for installing two gas turbines generating unit in Oman. (ET)
NHPC likely to float Rs16.7bn IPO in August 2009. (BS)
Union Bank eyes business of Rs3trillion in FY10. (BS)
Cadila aims US$1bn sales in FY11. (FE)
Anand Mahindra ceased to be a promoter of Kotak Mahindra Bank after reducing his stake to 3.68% from a peak of nearly 15%. (ET)
Tata Power to generate 5MW from geothermal, solar plants in Gujarat. (BL)
HPCL plans to invest Rs6.1bn in two sugar mills it has bought in Bihar to manufacture Ethanol. (BS)
LIC Housing Finance plans to raise capital by issuing 10mn shares through QIP route. (BS)
Government has kicked off disinvestment process by putting up Indian Telephone Industries on the block. (ET)
Religare rights issue price may be raised to Rs400. (ET)
Pantaloon Retail has delayed its restructuring plan as it awaits a favorable FDI policy. (ET)
Aptech sells stake in China joint venture company. (BL)
Kinetic Engineering bags an order from European auto major. (BL)
Network 18 to raise Rs1.2bn through preferential allotment of shares to Asian private equity firm SAIF Partners. (BS)
SEBI has cleared Rs160mn open offer for Spice Mobiles. (FE)
TVS Motors arm to venture into car accessories business. (FE)
Economy Snippets
Government plans to take up all main gas pipeline projects in the country to ensure their speedy implementation. (ET)
According to Cellular Operators Association of India, the mobile subscriber base is expected to zoom to 893mn by 2012. (BL)
Government is examining a proposal to dilute its stake to 90% in all listed public sector undertakings. (BS)
Demand dip cools power prices to record low of 13paise. (FE)
DTH companies eye cut in license fees to 6% from 10% currently. (FE)
A dry spell!
If you refuse to be made straight when you are green, you will not be made straight when you are dry.
After a flood of gains, we may have a brief dry spell in the market. We hear that the monsoon, like the economic progress, may be slow after an unexpected early start. We see a subdued start with profit-taking in most counters. Strong hands could however rescue select counters. Expectations have shot through the roof in the wake of the UPA’s massive electoral triumph. The UPA may be slower on reforms. Some expectations may not even be met. All eyes are therefore on the budget (for now).
Stocks have had a strong run in the past three months. Though the bias is positive, this leaves less headroom for major gains without a meaningful correction. Concerns remain on widening fiscal deficit, not just in India but globally. The loose monetary policy has led to a liquidity deluge. This may result in fresh asset price inflation. Crude oil has already shot up. Though there is talk of oil price deregulation, but it remains to be seen if Mr. Deora walks the talk given the political compulsion.
GMR Infra, Power Finance Corp. and Sundram Fasteners will announce their results today.
US stocks slipped on Wednesday, as investors locked in some gains after a four-session advance, after mixed readings on the US economy. Traders were also cautious ahead of reports on retail sales and labor market due later this week.
The Dow Jones Industrial Average lost 66 points, or 0.8%. The S&P 500 index fell 13 points, or 1.4%. The Nasdaq Composite index dipped 11 points, or 0.6%.
Reports on the job market, factory orders and the services sector of the US economy were in focus, along with congressional testimony from Federal Reserve Chairman Ben Bernanke.
Stock declines were broad based, with 24 of 30 Dow issues falling, led by oil companies Chevron and Exxon Mobil. Oil prices fell after the government's weekly inventory report showed a larger-than-expected build up in inventories.
Oil services firm Valero Energy tumbled 18% after warning that it would report a quarterly loss rather than a quarterly profit analysts expected. The company also said it will make an additional 40 million shares available.
A couple of reports showed the pace of job losses could be slowing.
Private-sector employers cut 532,000 jobs in May after paring 545,000 in April, according to payroll-services firm ADP. Expectations were for 525,000 cuts.
A separate report showed the number of job cuts announced in May fell for the fourth month in a row. According to outplacement firm Challenger, Gray & Christmas Inc., job cut announcements by US employers were 111,182 in the month, down from 132,590 in April. The figure was the lowest total since last September, but still up from a year earlier.
The reports set the tone for the broader May non-farm payrolls report due out Friday.
The Institute for Supply Management's (ISM) index on the services sector of the economy improved to 44 from 43.7 in April. However, that was short of forecasts for an improvement to 45.
Factory orders rose 0.7% in April after falling 1.9% in March. Economists thought orders would climb 0.9%.
Fed chief Bernanke told the House Budget Committee that while data show the pace of the recession is slowing, the US economy still has a lot of work ahead of it. In particular, he talked about the impact of the still-weak labor market and decline in household wealth.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.54% from 3.61% on Tuesday.
In currency trading, the dollar gained versus the euro and yen.
US light crude oil for July delivery fell $2.43 to settle at $66.12 a barrel on the New York Mercantile Exchange.
COMEX gold for August delivery slipped $18.70 to settle at $964.50 an ounce.
Losses for commodity-sector stocks and banks weighed on Europe. The pan-European Dow Jones Stoxx 600 index lost 2% to 209.90, down for the second straight session.
Eurozone GDP fell 2.5% quarter-on-quarter in the first quarter of 2009, data confirmed on Wednesday. The annual drop was revised down to 4.8%, from an earlier reading of 4.6%.
The UK-based FTSE 100 index declined 2.1% to 4,383.42, while the French CAC-40 index fell 2% to 3,309.65 and Germany's DAX index lost 1.7% to 5,054.53.
The Sensex ended flat at 14,871 after touching a high of 15,046 and a low of 14,733. The index had opened at 14,902 against the previous close of 14,874.
The NSE Nifty ended flat to shut shop at 4,520.
Volume buzzers in the Mid-Cap and Small-Cap zone, Alok Industries, Dish TV, Anu’s Lab, S Kumars Nationwide, Spice Jet and Hinachal Futuristic were among the top traded stocks.
Among the BSE Sectoral indices BSE Consumer Durable index was the top gainer surging 4.4%, followed by the BSE FMCG index up 4%, BSE Pharma index up 2.5%, BSE Metal index up 1.5% and BSE Power index up 1%.
The BSE Mid-Cap index was up 1.5% and BSE Small-Cap index added 2%.
Shares of Sundaram-Clayton have surged by over 5.8% to Rs160 after ~7.4mn equity shares of the company changed hands in a single transaction. The deal was at an average price of Rs165 per share on the BSE.
The scrip has touched an intra-day high of Rs166 and a low of Rs151 and has recorded volumes of over 7.5mn shares on BSE.
Shares of Tata Motors gained by over 3.6% to Rs362 after reports stated that Moody’s upgraded the outlook on Tata Motors from negative to stable. The scrip touched an intra-day high of Rs378 and a low of Rs355 and recorded volumes of over 1.7mn shares on BSE.
Shares of ACC surged by over 4% to Rs819 after the company announced that its cement dispatches were up 1.1% yoy to 1.82mn tones in May 2009. The scrip touched an intra-day high of Rs822 and a low of Rs792 and recorded volumes of over 1.7mn shares on BSE.
Shares of JSW Steel gained by 3% to Rs586. Reports stated that the company has deferred Rs350bn 10mtpa West Bengal project. The scrip touched an intra-day high of Rs591 and a low of Rs548 and recorded volumes of over 1.1mn shares on BSE.
Shares of MTNL gained by 3.5% to Rs110 after reports stated that the company was aiming at 300,000 subscribers for its 3G service. The scrip touched an intra-day high of Rs112 and a low of Rs107 and recorded volumes of over 0.9mn shares on BSE.
SEBI cleared the open offer for Satyam Computer Services by Tech Mahindra.
The regulatory body asked Tech Mahindra to share with the company’s stakeholders the information Satyam had provided to the bidders. The open offer commences on June 12 and closes on July 1, 2009.
Shares of Satyam Computer surged by over 7% to Rs67 after hitting an intra-day high of Rs68 and a low of Rs64 and recorded volumes of over 40mn shares on BSE.
Meanwhile, shares of Tech Mahindra shot up by over 18% to Rs658 after hitting an intra-day high of Rs679 and a low of Rs560 and recorded volumes of over 1.7mn shares on BSE.
Aptech Ltd completed the process of sale of its 50% equity interest in the China JV Company and has also received its 22% allotment of shares in the holding Company, Beijing Jadebird IT Education Company Ltd (BJBC).
In terms of the definitive agreements, company including its subsidiaries would also be entitled to receive, prior to the proposed Initial Public offering of BJBC, as much of its distributable profits as possible, subject to any legal, accounting or working capital requirements as may be determined by the Board of Directors of BJBC.
In this regard, the definitive agreements envisages payment of a one-time special dividend, which in any event shall not be less than RMB 193 mn (equivalent to approx. US$ 28 million /approx. Rs1350 mn), in which share of Aptech India including its subsidiaries would be 22%.
Shares of Aptech rallied by over 14% to Rs193 after hitting an intra-day high of Rs197 and a low of Rs170 and recorded volumes of over 1.5mn shares on BSE.
After hitting the 15k, markets would enter into a consolidation phase which is seen in the past couple of trading sessions. While stocks may remain firm in the near term, one must stay guarded given the euphoric rally.
FII buying slows down
Inflow of Rs 209.30 crore on 2 June 2009
Foreign institutional investors (FIIs) bought shares worth a net Rs 209.30 crore on Tuesday, 2 June 2009, much lower than Rs 617.90 crore on Monday, 1 June 2009.
FII inflow of Rs 209.30 crore on 2 June 2009 was a result of gross purchases Rs 4,067.60 crore and gross sales Rs 3,858.30 crore. The BSE Sensex had risen 34.28 points, or 0.23%, to 14,874.91 on that day.
FII inflow in calendar year 2009 totaled Rs 22,146.60 crore (till 2 June 2009).
There are a total of 1661 foreign funds registered with the Securities & Exchange Board of India (Sebi).
Crude glides down
Prices drop as energy department announces sudden rise in crude inventories
Crude prices dropped substantially on Wednesday, 03 June, 2009 as energy department reported sudden rise in crude inventories for last week. Market was expecting a decline in crude inventories. Prices also fell today due to the firming up of the dollar.
On Wednesday, crude-oil futures for light sweet crude for July delivery closed at $65.7/barrel (lower by $2.86 or 4.2%). 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 58% since then. Year to date, in 2009, crude prices are higher by 34%.
EIA reported today that U.S. commercial crude inventories for the week ended 29 May rose to 366 million barrels, up 2.9 million barrels. Market was expecting a decline to the tune of 2 million barrels.
EIA also reported that total motor gasoline inventories decreased by 200,000 barrels on the week, while distillate supplies increased 1.6 million barrels.
In the currency market on Wednesday, the U.S. dollar index, a gauge of the greenback against six major currencies, rose as much as 1.3%, following a 6.1% drop in May. It was the first increase for the dollar in five sessions. The dollar rose today against the euro after data showed the European economy shrank 2.5% in the first quarter. 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 Wednesday, reformulated gasoline for July delivery fell 5.72 cents, or 3%, to $1.868 a gallon and July heating oil dropped 7.78 cents, or 4.3%, to $1.7188 a gallon.
Natural-gas futures for July gas contract tumbled 35.4 cents, or 8.6%, to $3.766 per million British thermal units. The EIA will report on Thursday morning the latest data on natural gas in storage for the week ended 29 May, 2009.
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 3,102/barrel, lower by Rs 122 (3.8%) against previous day's close. Natural gas for June delivery closed at Rs 178.1/mmbtu, lower by Rs 16.7/mmbtu (8.6%).
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