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Friday, June 05, 2009
Post Session Commentary - June 5 2009
The domestic stock market managed to close the extreme volatile session on a positive note. The domestic market came off sharply form the day’s high in the final hour of the session to pare most of its gains due to profit booking across selective indices. Though there was a gap up opening tracking the positive Asian markets but it soon turned volatile as profit booking takes a lead. The investors took calculated steps during the trading session as the investors are eyeing the Union budget, which is scheduled to be announced on July 3, 2009 by Pranab Mukherjee.
The domestic key benchmark indices opened on a positive note tracking the positive global markets but remained rangebound for most part of the session. However, the market showed sharp upward trend after the mid session but did not able to sustain at that level and fell to pare most of its gains. Moreover, in the global arena, the Bank of England kept the interest rate unchanged. Also no fresh measures have been announced by the Bank to stimulate the economy. The Bank, in the last month, had announced that it would be injecting an extra pound 50bn into the economy as part of its quantitative easing policy. Policymakers are attempting to find out how the economy is faring amid tentative signs of a recovery. According to a closely-watched survey on the service sector, the recovery may be coming faster than expected. Moreover, On Thursday, the US Markets closed in positive territory. On macro economic scenario, retailers reported unimpressive comparable store sales for May. The sector had lost 3.0% at their session low however later managed to close at a loss of 1.2%. On the other hand, the numbers of initial jobless claims are slowing as initial weekly claims for the week ending May 30 totaled 621,000, in-line with the consensus estimate. Continuing jobless claims cooled off from record highs by coming in at 6.74 million, which is below what was expected. However, the BSE Sensex after witnessing a lot of volatility during the session closed above 15,100 mark and NSE Nifty above 4,580 mark. From sectoral front, investors on-loaded position across the sectors led by Capital Goods, IT and Auto index while the investors offload across FMCG and Realty index.
Among the Sensex pack 20 stocks ended in positive territory and 10 in negative. The market breadth indicating the overall health of the market remained strong as 1,519 stocks closed in green while 1,318 stocks closed in negative and 54 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 94.87 points or 0.63% at 15,103.55 and NSE Nifty closed up by 14.25 points or 0.31% at 4,586.90. The BSE Mid Caps and Small Caps closed with losses of 36.30 and 66.54 points at 5,409.78 and 6,458.65. The BSE Sensex touched intraday high of 15,257.30 and intraday low of 14,993.60.
Gainers from the BSE Sensex pack are Grasim Inds (6.06%) followed by Tata Motors (5.31%), Bhel (5.30%), L&T (4.35%), Infosys (3.91%) and Tata Power (3.82%).
Losers from the BSE Sensex pack are ITC (5.46%), Reliance Infra (3.66%), SBI (3.09%), DLF (1.95%) and Reliance Inds (1.94%).
On the global markets front the Asian markets which opened before the Indian market, closed mixed. Strait Times, Seoul Composite, Nikkei and Hang Seng closed up by 1.42%, 1.20%, 1.02% and 0.96% at 2,396.35, 1,394.71, 9,768.01 and 18,679.53. While Sanghai Composite and Taiwan Weighted closed lower by 0.48% and 0.28% at 2,753.981 and 6,767.10.
European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading higher by 0.40% at 5,085.23 and in London FTSE 100 is trading up by 1.33% at 4,445.47.
The BSE Consumer Durables index increased (0.78%) or 23.55 points to close at 3,030.84. Main gainers are Rajesh Export (3.73%), Titan Industries (2.28%) and Gitanjali Gems (0.32%).
The BSE Bankex index increased (0.49%) or 39.63 points at 8,204.48. Scrips that mostly gained are Bank of Baroda (3.49%), HDFC Bank (2.15%), ICICI Bank (2.30%), Allahabad Bank (1.93%) and Axis Bank (0.36%).
The BSE Metal index ended marginally lower by (0.03%) or 4.03 points at 11,695.50. Welspun Gujurat Sthal (4.09%), Ispat Industries (3.93%), Sesa Goa (3.74%), NMDC (3.49% and Jindal Saw (2.02%) ended in negative territory.
The BSE IT index grew (2.61%) or 80.35 points to close at 3,154.35. Gainers are Infosys Technologies (3.91%), Financial Technologies (1.94%), TCS (1.93%), HCL Technologies (0.29%) and Oracle Fin (0.06%).
The BSE Power improved (0.18%) or 5.42 points at 3,008.64. Losers are GVK Power (4.52%), Suzlon Energy (4.31%), Reliance Power (3.28%), Torent Power (1.37%) and NTPC (1.17%). However Tata Power ended higher by (3.82%).
The BSE Realty index dropped (2.12%) or 87.25 points to close at 4,029.74. Losers are Phoenix Mill (8.91%), HDIL (5.67%), India Bull Real (4.75%), Anant Raj Industries (4.09%) and Penland (2.30%).
The BSE Health Care increased (0.77%) or 27.87 points at 3,638.11. Gainers are Dr. Reddy (6.22%), Aurobindo Pharma (4%), Biocon (2.98%), Disman Pharma (2.94%), and Sun Pharmaceutical (2.70%).
Indian Overseas Bank (IOB) dropped 0.65% to Rs91.75. The company has informed that on June 04, 2009, the Bank has entered into a Joint Venture Agreement with Bank of Baroda and Andhra Bank for setting up a banking subsidiary in Malaysia in the name of BIA Bank (Malaysia) Bhd. The shareholding pattern in the subsidiary is Bank of Baroda - 40%, Indian Overseas Bank - 35% and Andhra Bank - 25%.
GMR Infrastructure Ltd fell 3.63% to Rs. 171.05. The net profit of the company rose 55.79% to Rs 97.67 crore on a 47.07% increase in total income to Rs 165.02 crore in the year ended March 2009 over the year ended March 2008.
JSW Steel Limited plunged 0.37% to Rs 584.75. The company reported a growth of 33% in Crude Steel production for May 2009 compared to that of corresponding month in the last fiscal year. The substantial growth in production is mainly attributable to the production from 2.8 MTPA expansion project at Vijayanagar works.
Jain Irrigation tumbled 0.12% to Rs650.35. The company has bagged the TN-IAMWARM order of World Bank, which is valued at Rs. 778 mn covering 22,345 Ha to be executed during this year.
BSE Bulk Deals to Watch - June 5 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
5/6/2009 530721 ANG AUTO PIVOTAL SEC P LTD S 85644 58.08
5/6/2009 512535 ASAHI INFR P PARESH L RATHI S 224406 1.85
5/6/2009 530355 ASIAN OILFIE DECENT FIN SER LTD B 128000 67.82
5/6/2009 530355 ASIAN OILFIE RELIGARE FINVEST LTD S 128000 67.81
5/6/2009 512149 AVANCE TECHN JASMINSBAJORIYA B 38647 21.84
5/6/2009 512149 AVANCE TECHN BHAVANA DEVANG MASTER B 25000 21.90
5/6/2009 512149 AVANCE TECHN VICKY RAJESHBHAI JHAVERI S 25000 21.90
5/6/2009 531733 BAFNA SPINNI PUKHRAJHIRACHANDBAFNA S 250000 2.83
5/6/2009 511664 BGIL FL TEC TARUNKUMARGURUCHARANBRAHMBHATT S 39020 46.41
5/6/2009 511664 BGIL FL TEC PRARTHANATARUNKUMARBRAHMBHATT S 44188 46.14
5/6/2009 590059 BIHAR TUBES THE PERLESS CONSULTANCY SERVICES PRIVATE LIMITED S 200000 63.90
5/6/2009 500446 CAROL INFO GANDIV INVESTMENT PVT. LTD. B 214342 56.38
5/6/2009 500446 CAROL INFO COSMO INVESTMENT B 192032 58.01
5/6/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD B 579130 6.50
5/6/2009 531682 CAT TECHNOL JMP SECURITIES PVT LTD S 434822 6.50
5/6/2009 523200 CLASS DIAM I MERRILL LYNCH CAPITAL MARKET ESPANA SA SVB S 465000 20.91
5/6/2009 500136 ESTER INDUST AJAY GUPTA B 373610 23.57
5/6/2009 590024 FERT CHEM R.B.K.SHARE BROKING LIMITED. B 62638 55.73
5/6/2009 590024 FERT CHEM R.B.K.SHARE BROKING LIMITED. S 38084 55.24
5/6/2009 532836 GREMAC INFRA VIKSIT ENGINEERING LIMITED B 80000 52.50
5/6/2009 532836 GREMAC INFRA RISHIRAJ AGARWAL S 129500 52.61
5/6/2009 532836 GREMAC INFRA GUJARAT FREEFLOW SALTS REFINERY PVT LTD S 123378 52.74
5/6/2009 508918 GREYCELLS EN PARSHURMAGSHINDE B 32000 252.00
5/6/2009 508918 GREYCELLS EN HEMANG KIRITKUMAR MUCHHALA S 32000 252.00
5/6/2009 504176 HIGH ENERGY KALIDENDI VENUGOPAL RAJU B 5000 128.37
5/6/2009 504176 HIGH ENERGY SANJAYPDAVDA S 5000 133.04
5/6/2009 504176 HIGH ENERGY KALIDENDI VENUGOPAL RAJU S 5000 134.88
5/6/2009 500185 HINDUS CONST MORGAN STANLEY INVESTMENT MGT INC. A/C MORGAN STANLEY INDIA INVT B 1200000 123.75
5/6/2009 500185 HINDUS CONST TEMPLETON INSTITUTIONAL FUNDS INC TEMPLETON EMERGING MARKETS SERI S 1200000 123.75
5/6/2009 590018 HISAR METAL RIDHINARULA B 27000 26.55
5/6/2009 590018 HISAR METAL SUKARMA FINANCE LTD S 26398 26.55
5/6/2009 532264 INDAGE RES PIVOTAL SEC P LTD S 206500 17.30
5/6/2009 532627 JP HYDROPOW OPG SECURITIES P LTD B 4288245 97.99
5/6/2009 532627 JP HYDROPOW OPG SECURITIES P LTD S 4288245 98.10
5/6/2009 516078 JUMBO BAG LT KRUPAL VIKRAMBHAI PATEL S 37175 31.87
5/6/2009 532081 K SERA SERA BASMATI SECURITIES PVT LTD B 375289 17.93
5/6/2009 532081 K SERA SERA S V ENTERPRISES B 1492720 17.84
5/6/2009 532081 K SERA SERA S V ENTERPRISES S 1038303 18.00
5/6/2009 531687 KARUTURI GLO KMUK A/C LTD SANDSTONE CAPITAL INDIA MASTER FUND LTD B 5000000 15.80
5/6/2009 531687 KARUTURI GLO MAVI INVESTMENT FUND LIMITED S 3840386 15.80
5/6/2009 532092 KIRTI FINVES VIKAS TUKARAM MANE B 271000 0.61
5/6/2009 500250 L.G.BALABROS EAST SAIL S 500000 16.46
5/6/2009 590011 MOVING PICTU-PMS RAHULGUPTA B 50000 5.51
5/6/2009 531083 NIHAR INFO DIVYESH NIHAR BODA B 74525 3.35
5/6/2009 531083 NIHAR INFO SATYANAGASURYANARAYANA BODA S 90918 3.34
5/6/2009 523670 NOIDA MEDI C JAYKPANDYA B 31456 15.62
5/6/2009 590057 NORTHGATE TE JMP SECURITIES PVT LTD B 236604 57.05
5/6/2009 590057 NORTHGATE TE JMP SECURITIES PVT LTD S 346606 57.04
5/6/2009 523483 PACIFIC INDU GANGA JAMUNA FINANCIAL ADVISOR PVT LTD B 7500 321.45
5/6/2009 523483 PACIFIC INDU ASHOKA FINSTOCK LTD B 9963 319.99
5/6/2009 523483 PACIFIC INDU BHARATJAYANTILALPATEL S 7500 317.92
5/6/2009 523483 PACIFIC INDU ASHOKA FINSTOCK LTD S 9963 319.93
5/6/2009 530923 PASSARI CELL SUNITHA KUMARI S 26600 31.90
5/6/2009 517522 RAJ GLO WIR MRINALINI TRADING CO PVT LTD B 85000 76.00
5/6/2009 517522 RAJ GLO WIR SURBHI INV & TRADING CO PVT LTD S 85000 76.00
5/6/2009 503162 REL CHEMO IN RAKESHBHAI AMULAKHBHAI MEHTA B 30765 39.53
5/6/2009 526753 ROSELABS LTD PAWANKUMAR AGARWAL S 124235 11.70
5/6/2009 531898 SANGUINE MD SETU SECURITIES PVT LTD B 150000 4.36
5/6/2009 531898 SANGUINE MD BCB FINANCE PRIVATE LIMITED B 86265 4.36
5/6/2009 531898 SANGUINE MD SANGHVI FINCAP LTD. S 200000 4.36
5/6/2009 532886 SEL MANUF MAVI INVESTMENT FUND S 90600 83.49
5/6/2009 512499 SHALIMAR PRO ANANTPRAKASHKABRA S 150000 1.58
5/6/2009 532765 USHER AGRO HEMCHANDGANDHI S 250000 39.19
5/6/2009 513216 UTTAM GALVA SANJUG TRADING COMPANY LIMITED B 1100000 57.27
5/6/2009 513216 UTTAM GALVA YATINKHANNA S 1100000 57.26
5/6/2009 531874 VENUS VENT KANCHAN VIJAYKUMAR THAKKAR B 37230 49.63
5/6/2009 531874 VENUS VENT VIPULHIRALALSHAH B 30000 49.68
5/6/2009 531874 VENUS VENT PATCHAVASRIKANTH S 30000 50.00
5/6/2009 531874 VENUS VENT KANCHAN VIJAYKUMAR THAKKAR S 32225 49.71
5/6/2009 532648 YES BANK FRANKLIN TEMPLETON MUTUAL FUND B 1500000 135.00
5/6/2009 532648 YES BANK MAGS FINVEST PVT LTD S 2000000 136.63
NSE Bulk Deal Watch - June 5 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
05-JUN-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,291447,1228.87,-
05-JUN-2009,ADLABSFILM,Adlabs Films Limited,A TO Z STOCK TRADE PRIVATE LIMITED,BUY,285667,452.67,-
05-JUN-2009,ADLABSFILM,Adlabs Films Limited,GLOBE CAPITAL MARKET LIMITED,BUY,103628,451.44,-
05-JUN-2009,BAJAUTOFIN,Bajaj Auto Finance Ltd,RELIANCE CAPITAL TRUSTEE CO. LTD. A/C RELIANCE VISION FUND,BUY,493727,166.05,-
05-JUN-2009,CREWBOS,Crew B.O.S. Products Limi,NEENA DHAWAN,BUY,71200,48.70,-
05-JUN-2009,DSKULKARNI,DS Kulkarni Dev. Ltd.,BP FINTRADE PRIVATE LIMITED,BUY,215992,65.45,-
05-JUN-2009,HARRMALAYA,Harrisons Malayalam Ltd,VAIBHAV DOSHI,BUY,135050,84.93,-
05-JUN-2009,HCC,Hindustan Construc Co.,MORGAN STANLEY INVESTMENT MANAGEMENT INC A/C MORGAN STANLEY,BUY,1305000,124.85,-
05-JUN-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,3649756,54.79,-
05-JUN-2009,ISPATIND,Ispat Industries Limited,EXCEL FINCOM,BUY,7379403,27.77,-
05-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,9672083,27.97,-
05-JUN-2009,JPHYDRO,Jaiprakash Hydro-Power Li,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,3370050,98.24,-
05-JUN-2009,JPHYDRO,Jaiprakash Hydro-Power Li,GENUINE STOCK BROKERS PVT LTD,BUY,3457667,97.57,-
05-JUN-2009,JPHYDRO,Jaiprakash Hydro-Power Li,PRB SECURITIES PRIVATE LTD.,BUY,3307114,97.10,-
05-JUN-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,BUY,442019,17.93,-
05-JUN-2009,SRTRANSFIN,Shriram Trans Fin Co. Ltd,RELIANCE CAPITAL MUTUAL FUND A/C RELIANCE GROWTH FUND,BUY,2373982,285.00,-
05-JUN-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,2063488,26.80,-
05-JUN-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,291447,1229.94,-
05-JUN-2009,ADLABSFILM,Adlabs Films Limited,A TO Z STOCK TRADE PRIVATE LIMITED,SELL,285667,452.23,-
05-JUN-2009,ADLABSFILM,Adlabs Films Limited,GLOBE CAPITAL MARKET LIMITED,SELL,237474,454.91,-
05-JUN-2009,ALPSINDUS,Alps Industries Ltd.,BEAUMARIS INVESTMENTS LIMITED,SELL,250000,16.03,-
05-JUN-2009,ANGAUTO,ANG Auto Limited,PIVOTAL SECURITES PVT. LTD.,SELL,77845,58.41,-
05-JUN-2009,BAJAUTOFIN,Bajaj Auto Finance Ltd,MACQUARIE BANK LIMITED,SELL,414631,166.12,-
05-JUN-2009,CLASSIC,Classic Diamonds (India),MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,530579,20.93,-
05-JUN-2009,DSKULKARNI,DS Kulkarni Dev. Ltd.,BP FINTRADE PRIVATE LIMITED,SELL,204992,65.65,-
05-JUN-2009,HARRMALAYA,Harrisons Malayalam Ltd,VAIBHAV DOSHI,SELL,47050,84.65,-
05-JUN-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,3697036,54.79,-
05-JUN-2009,ISPATIND,Ispat Industries Limited,EXCEL FINCOM,SELL,7379403,27.82,-
05-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,10652983,27.95,-
05-JUN-2009,JPHYDRO,Jaiprakash Hydro-Power Li,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,3375150,98.33,-
05-JUN-2009,JPHYDRO,Jaiprakash Hydro-Power Li,GENUINE STOCK BROKERS PVT LTD,SELL,3442016,97.66,-
05-JUN-2009,JPHYDRO,Jaiprakash Hydro-Power Li,PRB SECURITIES PRIVATE LTD.,SELL,3182114,97.14,-
05-JUN-2009,KALINDEE,Kalindee Rail Nirman (Eng,T ROWE PRICE INT INC A/C T ROWE PRICE NEW ASIA FUND,SELL,355177,202.55,-
05-JUN-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,SELL,1100,17.74,-
05-JUN-2009,LGBROS,LG Balakrishnan & Bros ,EAST SAIL, (MAU) PARI WASHINGT,SELL,657011,16.33,-
05-JUN-2009,LUMAXAUTO,Lumax Automotive Systems,RELIGARE FINVEST LTD.,SELL,45000,30.75,-
05-JUN-2009,SELMCL,SEL Manufacturing Company,MAVI INVESTMENT FUND,SELL,100000,83.29,-
05-JUN-2009,SRTRANSFIN,Shriram Trans Fin Co. Ltd,AXIS BANK LTD,SELL,2480000,285.02,-
05-JUN-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,2080734,26.81,-
Market flat almost
The market appeared to be heading towards a negative close after a strong bout of profit taking towards the close shaved off nearly 153 points from the day’s high.
Starting the day with a positive gap of 31 points at 15040, the Sensex witnessed strong optimism till afternoon. Sustained buying in several counters held the market firm above 15200 levels in the first half of the trading session. In afternoon session, the index notched up further gains to touch the day's high of 15257. However, the market slid towards the close, as weakness in select heavyweights, fast moving consumer goods, realty and oil stocks erased 200 points from the index’ day’s high. The Sensex however ended the session with marginal gains of 95 points at 15104, while Nifty gained 14 points to close at 4587.
The market breadth was positive. Of the 2,891 stocks traded on the BSE, 1,519 stocks advanced, 1,318 stocks declined. 54 stocks ended unchanged. Most of the sectoral indices on the BSE remained above their yesterday’s close. BSE CG gained 2.95% followed by BSE IT (up 2.61%), BSE Auto (up 2.49%) and BSE Teck (up 1.58%). However, BSE FMCG (down 2.34%), BSE Realty, BSE Oil & Gas and BSE Metal closed with marginal losses.
Among the Sensex stocks, Grasim Industries was the leading gainer, soaring 6.06% at Rs2,510.70 for the day. Tata Motors advanced 5.31% at Rs389.05, Bharat Heavy Electricals jumped 5.30% at Rs2287.40, Larsen & Toubro shot up by 4.35% at Rs1519.30, Infosys Technologies added 3.91% at Rs1,690.55, while Tata Power, Hindalco Industries, Mahindra & Mahindra, Sun Pharmaceutical Industries and ACC closed with marginal gains. Among laggards, ITC tumbled 5.46% at Rs191.40, Reliance Infrastructure shed 3.66% at Rs1,226.80 and State Bank of India declined 3.09% at Rs1,817.90. DLF, Reliance Industries and Tata Steel lost 1% each.
Over 8.61 crore shares of Cals Refineries changed hands on the BSE followed by JP Hydro (3.20 crore shares), Unitech (3.05 crore shares), Satyam Computer Services (2.65 crore shares) and Ispat Industries (2.28 crore shares).
Market extends rally for thirteenth week; settle at multi month high
Key benchmark indices surged to multi-month highs, extending gains for the thirteen straight week in anticipation of a strong push for economic reforms by the newly-elected United Progressive Alliance (UPA) government. The barometer index BSE Sensex raced past the psychological 15,000 mark. Besides strong inflow from foreign funds, positive global cues and further signs of recovery in domestic and global economy boosted the sentiment further. Strong buying momentum was seen in small and mid-cap stocks
There are signs of recovery in the Indian economy. Manufacturing activity in India expanded for a second straight month in May 2009 to its highest in eight months, a survey showed, reflecting a revival in domestic demand but export orders remained weak. The Market Purchasing Managers' Index (PMI) based on a survey of 500 companies, rose to 55.7 in May 2009 from April's 53.3, well above the threshold of 50 that separates expansion from contraction.
The manufacturing index was boosted mainly by the new orders index, which rose to 59.1 in May 2009 from 54.9 in April 2009. Manufacturing makes up about 15% of India's gross domestic product. Although domestic demand improved, the pricing power of manufacturers was hurt by intense competition, while higher commodity prices also pushed up input prices, Market economist Gemma Wallace said.
President Pratibha Patil addressed to a joint session of both houses on 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.
Hopes of market friendly measures propelled key benchmark indices in the week ended Friday, 5 June 2009. The BSE Sensex advance 478.30 points or 3.27% to 15,103.5512, its highest closing since 12 August 2008. The S&P CNX Nifty gained 137.95 points or 3.1% to 4586.90 its highest closing since 11 August 2009.
The BSE Mid-Cap index gained 353.04 points or 6.98% to 5,409.78 and the BSE Small-Cap index advanced 471.83 points or 7.88% to 6,458.65 in the week ended Friday, 5 June 2009. Both these indices outperformed the Sensex
Trading for the week started on an upbeat note with markets advancing on Monday, 1 June 2009 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 and the S&P CNX Nifty rose 80.95 points, or 1.82%, to 4,529.90
Key benchmark indices saw divergent trend on Tuesday, 2 June 2009 with the BSE Sensex logging small gains and Nifty ending slightly lower in what was a highly choppy trading day. The BSE 30-share Sensex rose 34.28 points, or 0.23%, to 14,874.91. However the S&P CNX Nifty fell 4.65 points, or 0.10%, to 4525.25
Indices continued to see 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 after surging past the psychological 15,000 mark, the level it reached for the first time in nearly 9 months in intra-day trade. However, the S&P CNX Nifty rose 5.45 points, or 0.12%, to 4,530.70, its highest closing since 12 August 2008.
Buying frenzy in late trade helped indices reverse early losses caused due to weak global cues and log decent gains on Thursday, 4 June 2009. The BSE 30-share Sensex rose 137.78 points, or 0.93%, to 15,008.68 and the S&P CNX Nifty shot up 41.95 points, or 0.93%, to 4,572.65
Market extended gains on Friday, 5 June 2009 on the back of firm global cues and continued buying demand for index pivotals. The BSE 30-share Sensex rose 94.87 points, or 0.63%, to 15,103.55 and the S&P CNX Nifty rose 14.25 points, or 0.31%, to 4,586.90
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) slipped 2.28% to Rs 2211.85 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
Meanwhile, the Directorate General of Hydrocarbons has also 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.
Metal shares advanced on strong domestic demand and firm prices on the London Metal Exchange (LME). Steel Authority of India (up 1.71%), Hindalco (up 9.68%), Sterlite Industries (up 7.95%), and Hindustan Zinc (up 9.55%), edged higher.
The world's sixth largest steel maker by sales Tata Steel jumped 14.18% to Rs 463.90 after its unit, Tata Steel UK, won approval from banks to ease conditions on a 3.7 billion pounds loans it took to buy Anglo-Dutch Corus. The announcement was made on Saturday, 30 May 2009.
India's top small car maker by sales Maruti Suzuki gained 5.99% to Rs 1082.25 after total sales rose 15.7% to 79,872 units in May 2009 over May 2008.
India's top truck marker by sales Tata Motors jumped 15.55% to Rs 389.05 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
India's second largest listed cellular services provider by sales Reliance Communications (RCom) surged 10.81% to Rs 338.85 on the company's plans to raise funds through the qualified institutional placement route.
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.
India's largest cellular services provider by sales Bharti Airtel rose 0.63% to Rs 824.80, on fears that the merger deal with MTN would lead to dilution in earnings per share. On 25 May 2009, Bharti Airtel said it is in talks to buy 49% of Johannesburg-based MTN, the first step in a potential $23 billion merger. The deal may also see MTN, Africa's largest mobile-phone company, buy 36% of Bharti Airtel
Infrastructure shares gained on hopes the Congress-led UPA government may boost spending on infrastructure sector. GVK Power & Infrastructure (up 1.86%), GMR Infrastructure (up 3.79%), Bhel (up 5.17%), IVRCL Infrastructures & Projects (up 11.21%), surged
Realty stocks rose on expectations that stability at the Centre will attract more money from foreign investors into the sector which in turn will boost growth. DLF (up 1.18%), Housing Development & Infrastructure (up 7.13%), and Unitech (up 22.63%), gained.
In the last six weeks, three realty firms Unitech, DLF and Indiabulls Real Estate, have together raised Rs 8000 crore through qualified institutional placements (QIPs).
India's largest bank by net profit and branch network State Bank of India (SBI) fell 2.74% to Rs 1817.90 on profit booking after the recent rally. Reportedly the bank hopes to earn more profit than the landmark figure of Rs 10,000 crore in the current fiscal
India's second largest bank by net profit ICICI Bank rose 1.41% to Rs 751.15 after it said on 4 June 2009 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.
Shares of public sector firms gained on speculation the UPA government may revive disinvestment programme. Shipping Corporation of India (up 5.86%), HMT (up 4.87%), Hindustan Copper (up 26.55%), MMTC (up 24.09%), rose
The Congress party had in its manifesto released before polls promised to go ahead with disinvestment while retaining a majority holding in the state-run companies. Disinvestment programme was earlier put on the back burner due to stiff opposition from the Left front which provided support to the previous government for most part of the five-year term.
India's largest cement manufacturer by sales ACC gained 9.57% to Rs 857.95 after cement production rose 1.11% to 1.81 million tonnes and cement dispatches rose 1.11% to 1.82 million tonnes in May 2009 over May 2008.
India's second largest software firm by sales Infosys Technologies gained 5.53% to Rs 1690.55 on 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.
Wholesale price index rose 0.48 % in the 12 months to 23 May 2009 lower than previous week's annual rise of 0.61%, government data showed on Thursday, 4 June 2009. The annual inflation rate was 8.9% during the corresponding week of the previous year.
The National Stock Exchange (NSE) after trading hours on 29 May 2009, announced a reduction in the lot size of a number of derivatives contracts as a part of a periodic review to meet a previously set value of the contract at Rs 2 lakh. For most of the stocks, the changes will be applicable from July 2009 derivative contracts. The reduction in lot size may result in increased participation from retail investors.
Thus, the lot size of Maruti Suzuki has been slashed to 200 from 800 and that of Steel Authority of India (Sail) has been reduced to 1350 from 5400. The lot size of Axis Bank has been halved to 450 from 900 and for Reliance Industries also the lot size has been halved to 150 from 300. State Bank of India's lot size too has been halved to 132 from 264.
India's infrastructure sector output grew 4.3% in April from a year earlier, government data showed on Tuesday, 2 June 2009. 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
Globally, China's official purchasing managers' index, a key economic indicator, slipped slightly in May 2009, but stayed above the 50 reading indicating manufacturing activity continued to expand for the third consecutive month. The Purchasing Managers Index slipped to 53.1 in May 2009 from 53.5 in April 2009 but held over the expansionary 50 mark, the China Federation of Logistics & Purchasing said.
US Treasury Secretary Timothy Geithner today, 1 June 2009 said that the global recession seemed to be losing force but that it will be critical for the United States and China to institute major economic reforms to put the world on a more sustained footing. Geithner said that a successful transition to a more balanced and stable global economy will require substantial changes to economic policy and financial regulation around the world and especially in the world's largest and third largest economies.
US GDP decreased at an annual rate of 5.7% in the first quarter of 2009, according to preliminary estimates from the Bureau of Economic Analysis. Although a significant contraction, the fall was smaller than the 6.3% drop in the fourth quarter of last year, and also beat advance estimates which had suggested a decline of 6.1%
Market seen consolidating after sharp recent rally
Key benchmark indices are likely to consolidate as some profit booking might emerge after witnessing a stupendous rally in the past thirteen weeks. However a lot would also depend on global cues, foreign funds flows and the progress of monsoon.
The recent surge propelled the BSE Sensex and the S&P CNX Nifty to multi-month highs in anticipation of a strong push for economic reforms by the newly-elected United Progressive Alliance (UPA) government. Hopes of market friendly measures helped the BSE Sensex advance 478.30 points or 3.27% to 15,103.55 and the S&P CNX Nifty gained 137.95 points or 3.1% to 4586.90 in the week ended Friday, 5 June 2009.
However the broad sentiment on the stock market is likely to remain firm 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 even see a pre-budget rally on hopes of accelerated economic reforms and pro-reforms announcements. Finance Minister Pranab Mukherjee will present the Union Budget on 3 July 2009 while Railway Minister Mamata Banerjee will present the Rail Budget on 1 July 2009. The Economic Survey will be held on 2 July 2009. The Union Budget 2009 attains significant importance in the wake of the global financial crisis. Despite the country being relatively unharmed compared to the West, the UPA government will have many tasks on its to-do list, which includes boosting growth and demand, continuing to maintain liquidity, balancing inflation and also containing the country's worrying fiscal situation.
The Government has made its intention clear to push for reforms and pursue the disinvestment agenda, which was met with stiff opposition in the UPA's previous stint when the Left parties were members for a major part of the five-year tenure. 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.
While addressing to a joint session of both houses on 4 June 2009 President Pratibha Patil disclosing the agenda of the UPA coalition government 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.
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 BSE Sensex has advanced 5456.24 points or 56.55% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 6943.15 points or 85.08%.
Foreign institutional investors (FII) were the key drivers of the recent solid surge. After being heavy net sellers of Rs 4250.30 crore in January 2009 and to the tune of Rs 2707 crore in February 2009, foreign fund selling eased in March 2009, when they tuned net sellers of only Rs 1.1 crore. Their buying gathered steam in April 2009 when they pumped Rs 7384.50 crore. They continue their buying spree in May 2009 pouring Rs 20,606.80 in equities. Their inflow in calendar year 2009 stood at Rs 21,818.80 crore till 3 June 2009. Meanwhile, mutual funds, which are sitting on a large cash pile, are also likely to buy on dips.
Meanwhile annual monsoon rains may further advance to more parts during the next 48 hours, India Meteorological Department (IMD), said on its website late on Thursday, 4 June 2009. Monsoon rains, which hit the country's mainland on 23 May 2009 ahead of its normal schedule of 1 June 2009, encountered a weak phase in the last week of May 2009.
The IMD on 17 April 2009 forecast a near normal monsoon this year saying rainfall in the June-September 2009 monsoon season is expected to be 96% of the long-term average. The outlook is among the nation's most widely watched indicator as monsoon rains are a major influence on output of key crops, economic activity and also affects sentiment in the country's financial markets.
Jaiprakash Associates, Divi's Laboratories, Indiabulls Financial Services, Sadbhav Engineering, CESC will unveil their March 2009 quarterly earnings in the forthcoming week. Aggregate results of 2157 firms showed net profit rose 27.90% on 0.7% rise in sales in q4 march 2009 over q4 march 2008.
Sensex extends gains for seventh straight day
The benchmark index BSE Sensex rose for the straight seventh day on firm global cues. It hits its highest closing since 12 August 2008. The BSE 30-share Sensex rose 94.87 points, or 0.63%, off close to 155 points from the day's high and up close to 110 points from the day's low. Banking stocks pared gains and index heavyweight Reliance Industries faltered. While IT stocks rose. Hopes of renewed reforms and rekindled growth by the new government also bolstered investor sentiment.
The market was volatile. After a firm start tracking positive Asia market turned red for a brief period in mid-morning trade before regaining strength later. Market pared gains after hitting the fresh day's high in early afternoon trade. Market remained firm in afternoon trade. It surged to the fresh day's high in mid-afternoon trade. It pared most of its gains in late trade.
The recent 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 Rs 21,818.80 crore (till 3 June 2009). As per the provisional data on NSE, foreign funds bought shares worth Rs 465.34 crore on Thursday, 4 June 2009.
Annual monsoon rains may further advance to more parts during the next 48 hours, India Meteorological Department (IMD), said on its website late on Thursday. Monsoon rains, which hit the country's mainland on 23 May ahead of normal schedule of 1 June, encountered a weak phase in the last week of May.
In the political front, President Pratibha Patil addressed to a joint session of both houses on Thursday, 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.
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 investors expect 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.
European shares rose on Friday, with Rio Tinto leading miners higher after scrapping a planned tie-up with Chinalco, and energy companies rising on higher crude prices. Key benchmark indices indices in France, Germany and UK rose by between 0.54% to 1.58%.
. Asian shares rose on Friday as hopes for a global economic recovery drove up appetite for riskier assets, but traders were cautious ahead of U.S. monthly job data. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore rose by between 0.96% to 1.42%. Key indices in Taiwan and China fell by between 0.28% to 0.48%.
U.S. nonfarm payrolls data due later in the day is expected to show employers cut 520,000 jobs in May 2009, lower than 539,000 in April 2009, and the unemployment rate is forecast to rise to 9.2 % from 8.9 % in April 2009.
Trading in the US index futures indicated Dow could rise 19 points at the opening bell today 5 June 2009.
The US markets advanced on Thursday 4 June 2009 as a report showed jobless claims fell last week and banks gained. The Dow Jones Industrial Average gained 74.96 points, or 0.9%, to 8,750.24. The S&P 500 index rose 10.70 points, or 1.2%, to 942.46, and the Nasdaq Composite rose 24.10 points, or 1.3%, to 1,850.02.
In economic news, initial jobless claims fell by 4,000 last week. Continuing claims fell to 6.73 million. It's the first time that it has declined since early January 2009, following 17 straight weeks of record highs. However, retail sales data disappointed. May 2009 sales reports from the nation's largest retailers showed 76% of retailers missed estimates.
The BSE 30-share Sensex rose 94.87 points, or 0.63%, to 15,103.55 its highest closing since 12 August 2008. The Sensex rose 248.62 points at the day's high of 15,257.30 hit in the mid-afternoon trade, its highest since 13 August 2008. At the day's low of 14,993.60, the Sensex fell 15.08 points in mid-morning trade.
The S&P CNX Nifty rose 14.25 points, or 0.31%, to 4,586.90 its highest closing since 11 August 2008. Nifty June 2009 futures were at 4594.80, at a premium of 7.90 points as compared to the spot closing of 4586.90. Turnover in NSE's futures & options (F&O) segment was Rs 65,938.39 crore lower than Rs 66,932.80 crore on Thursday, 4 June 2009.
BSE clocked a turnover of Rs 8.934 crore today lower than Rs 9,175.26 crore on 4 June 2009.
The Sensex jumped 5456.24 points or 56.55% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 6,943.15 points or 85.08%.
The BSE Capital Goods index (up 2.95%), the BSE IT index (up 2.61%), the BSE Auto index (up 2.49%), the BSE TECk index (up 1.58%), the BSE PSU index (up 1.33%), the BSE Consumer Durables index (up 0.78%), the BSE Healthcare index (up 0.77%) outperformed the Sensex.
The BSE FMCG index (down 2.34%), the BSE Realty index (down 2.12%), the BSE Oil & Gas index (down 0.77%), the BSE Metal index (down 0.03%), the BSE Power index (up 0.18%), the BSE Bankex (up 0.49%) underperfomed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,514 shares rose as compared with 1,315 that declined. A total of 54 shares remained unchanged.
Among the 30-member Sensex pack, 20 rose while the rest declined.
The BSE Mid-Cap index was down 0.67% and the BSE Small-Cap index was down 1.02%. Both the indices underperformed the Sensex.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.94% to Rs 2,211.85 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 on 3 June 2009.
Banking stocks pare gains on profit taking after they rose recently on hopes the UPA government will pursue financial sector reforms. India's largest private sector bank by net profit ICICI Bank rose 2.3% to Rs 751.15. The stock hit a high of Rs 763.80 and a low of Rs 738. Its American depository receipt (ADR) rose 7.19% on Thursday, 4 June 2009.
ICICI Bank on 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.
India's second largest private sector bank by operating income HDFC Bank rose 2.15% to Rs 1,418.70. Its ADR rose 3.06% overnight. The stock hit a high of Rs 1,431 and a low of Rs 1,386.50.
But, India's biggest bank in terms of branch network State Bank of India (SBI) fell 3.09% to Rs 1,817.90. The stock hit a high of Rs 1,920.90 and a low of Rs 1,810. Reports suggest SBI Chairman O P Bhatt said there is room to cut lending rates by 25 basis points.
India's biggest dedicated housing finance firm by operating income HDFC fell 0.63%.
Outsourcing focussed IT stocks rose on hopes aggressive measures by the United States to revive the economy may bear fruit. US is the biggest market for Indian IT firms. India's second largest software firm by sales Infosys Technologies rose 3.91% on recent 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. Its ADR gained 0.94% overnight.
India's third largest software services exporter by sales Wipro rose 0.49% as its ADR rose 1.48% overnight.
But, India's largest software services exporter by sales TCS rose 1.93%.
Cement stocks rose on posting healthy growth in shipments in the month of May 2009. India Cements, Grasim Industries, ACC, Ambuja Cements rose by between 0.68% to 6.06%.
Some capital goods stocks rose on hopes the UPA government's aim to revive economic growth would spur orders. Larsen & Toubro, Bharat Heavy Electricals, Crompton Greaves, Siemens, Thermax, Praj Industries rose by between 0.78% to 5.3%.
Auto stocks rose on posting good monthly sales figures in the month of May 2009. Tata Motors, Mahindra & Mahindra, Bajaj Auto, Maruti Suzuki India and Hero Honda Motors rose by between 0.73% to 5.64%.
Healthcare stocks rose on hopes newly elected UPA government will give primary importance to healthcare segment and health of citizens. Ranbaxy Laboratories, Dr Reddy's Laboratories, Biocon, Wochardt, Pfizer rose by between 0.41% to 6.22%.
Telecom stocks rose on hopes government may speed up the auction process for the spectrum allocation of third generation WiMax services and stress on rural telephony. Idea Cellular and Bharti Airtel rose by between 1.56% to 1.59%. Reliance Communications fell 0.98%.
Metal stocks as Copper rose in London, heading for a third straight weekly gain, on speculation that the pace of job cuts slowed in the U.S., adding to indications that the worst of the economic slump may be past. Steel Authority of India, National Aluminum Company, Hindalco Industries and Sterlite Industries rose by between 0.77% to 3.39%.
Hindustan Zinc rose 0.05% on raising zinc and lead prices.
Sugar stocks rose on hopes of a firm sugar prices on fall in output. Dhampur Sugar, Shree Renuka Sugars and Bajaj Hindustan rose by between 2.74% to 8.92%.
Shares of multiplex cinema operators rose on reports talks between Bollywood producers and multiplex owners came to an end as the two parties reached a revenue sharing deal. Cinemax India, Adlabs Films, PVR, Inox Leisure, Pyramid Saimira, and Fame India rose by between 0.95% to 5%.
Cals Refineries clocked the highest volume of 8.61 crore shares on BSE. Jaiprakash Associates (3.2 crore shares), Unitech (3.05 crore shares), Satyam computer Services (2.65 crore shares) and Ispat Industries (2.26 crore shares) were the other volume toppers in that order.
Jaiprkash Hydro Power clocked the highest turnover of Rs 308.19 crore on BSE. Unitech (Rs 298.34 crore), Suzlon Energy (Rs 292.50 crore), Reliance Capital (Rs 274.32 crore) and Reliance Industries (Rs 217.99 crore) were the other turnover toppers in that order.
Pre Session Commentary - June 5 2009
Today domestic markets are likely to open positive as the US markets closed in green on the back of better than expected weekly job claims. The other Asian markets are trading positive thus paving way for another northward movement today. The government’s focus on the key sectors would help the market sentiments for further firmness. One would witness strong buying sentiments across broader level especially in the mid cap and small cap basket. Stock specific movement would also prevail throughout the trading session.
On Thursday, the domestic markets closed with moderate gains. The session started with a subdued opening on the back of weak global cues. However statement from our Honorable President Pratibha Patil in the 15th Lok Sabha about reviving the Indian economy helped built strong sentiments. As per her statement the government would keep a keen focus on infrastructure, exports, SMEs, housing sector and recapitalise public sector banks. The government would further adopt the disinvestment policy to reduce government’s stake in PSUs to 51%. The markets reacted very positively to the statement. Sectors like Realty, CG, HC and Power inclined by 3.29%, 3.23%, 2.60% and 2.30% respectively. On the other hand, Mid cap and Small cap stocks were once again the out performers for the day with remarkable gains of 2.26% and 2.20% respectively. We expect the markets to be trading positive.
The BSE Sensex closed with a gain of 137.78 points at 15,008.68 and NSE Nifty ended up by 41.95 at 4,572.65. BSE Mid Caps and Small Caps closed with gains of 120.54 points and 140.27 points at 5,446.08 and 6,525.19 respectively. The BSE Sensex touched intraday high of 14,599.43 and intraday low of 15,026.03.
On Thursday, the US Markets closed positive. The markets started with phenomenal gains led by financial stocks which closed 4.0% higher as all the banking stocks rallied. The energy and materials stocks rebound from their previous losses to close with moderate gains of 2% and 2.2% respectively. On macro economic scenario, retailers reported unimpressive comparable store sales for May. The sector had lost 3.0% at their session low however later managed to close at a loss of 1.2%. On the other hand, the numbers of initial jobless claims are slowing as initial weekly claims for the week ending May 30 totaled 621,000, in-line with the consensus estimate. Continuing jobless claims cooled off from record highs by coming in at 6.74 million, which is below what was expected. Traders had broader look at the unemployment picture with tomorrow''s nonfarm jobs report, which is due ahead of the opening bell. The US light crude oil for July delivery inclined by 3.7% to settle at $68.70 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed high by 74.96 points at 8,750.24, the NASDAQ Composite (RIXF) index inclined by 24.108 points to close at 1,850.02 and the S&P 500 (SPX) gained 10.70 points to close at 942.46.
Indian ADRs rallied on Thursday. In the telecom space, Tata Communication was up 10.08% and MTNL was up 4.15%. In the banking space, ICICI Bank was up 7.19% and HDFC Bank was up 3.06%. In the IT space, Wipro was up 1.48%, Infosys was up 0.94%, Patni Computers was up 2.79% while Satyam Computers was down 15.38%.
Today major stock markets in Asia are trading positive. Hang Seng is flat at 18,498.92. Shanghai Composite is flat at 2,764.83. Japan''s Nikkei is trading up by 76.80 points at 9,745.76. Strait Times is also up by 14.09 points at 2,376.83. KLSE Composite is up by 8.57 points at 1,063.97.
The FIIs on Thursday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 3,423.80 Crore and gross debt purchased stood at Rs 428.20 Crore, while the gross equity sold stood at Rs 3,740.00 Crore and gross debt sold stood at Rs. 209.80 Crore. Therefore, the net investment of equity and debt reported were Rs (316.20) Crore and Rs 218.40 Crore respectively.
On Thursday, the partially convertible rupee closed at 47.20/21 per dollar, 0.3% weaker than it previous close at 47.07/08. The rupee fell as investors booked profit on previous rally.
On BSE, total number of shares traded were 80.49 Crore and total turnover stood at Rs 9,175.26 Crore. On NSE, total number of shares traded was 167.06 Crore and total turnover was Rs 26,357.67 Crore.
Top traded volumes on NSE Nifty – Suzlon Energy with 101522634 shares, Unitech with 89022623 shares, Hindalco with 21048781 shares, DLF with 14756408 shares, followed by Reliance Comm with 12108305 shares.
On NSE Future and Options, total number of contracts traded in index futures was 670007 with a total turnover of Rs 14,488.22 Crore. Along with this total number of contracts traded in stock futures were 490752 with a total turnover of Rs 29,650.73 Crore. Total numbers of contracts for index options were 893178 with a total turnover of Rs 205,43.25 Crore and total numbers of contracts for stock options were 36685 and notional turnover was Rs 2,250.60 Crore.
Today, Nifty would have a support at 4,525 and resistance at 4,626 and BSE Sensex has support at 14,912 and resistance at 15,245.
Stocks to Watch - Bharti Airtel, DLF, GMR
The government has reportedly asked Bharti Airtel to furnish details of its proposed $23-billion deal with South African operator MTN. The matter will be referred to the law ministry for legal opinion, the reports added.
Financial Technologies said on Thursday, 4 June 2009, the MCX Stock Exchange plans to divest 18% of its equity to Indian banks. Of this, it has already divested 6.48% equity with Union Bank of India and Bank of India through a primary offering for Rs 87.5 crore. The exchange is also expecting another 11.52% divestment to other public and private banks.
Indage Vintners has denied a report that it was in talks with Japanese beer maker Asahi Breweries and Indian entrepreneur Ravi Jain about a stake sale. Some reports had suggested Asahi and Jain were in the race to buy a major stake in Indage, which it said could attract an enterprise valuation of around $150 million.
Aban Offshore has reportedly told its bankers to moderate or change its huge debt repayment schedule and terms, due to a massive loan of Rs 15,000 crore taken for an overseas acquisition.
DLF is reportedly looking to sell land assets over the next one year to raise Rs 2000 crore in a bid to retire debt.
Fortune Hotels, a unit of ITC, is reportedly planning to launch 26 hotels in India by mid-2011. Currently it has 29 hotels with a room inventory of 2,400.
GMR Group is reported to be in talks with Nuclear Power Corporation of India to set up a nuclear power joint venture company.
Market may open higher
The key benchmark indices may open higher extending recent strong gains tracking positive global cues. Hopes of renewed reforms and rekindled growth by the new government may also bolster investor sentiment. However profit taking at higher levels may cap the upside.
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 Rs 21,818.80 crore (till 3 June 2009). As per the provisional data on NSE, foreign funds bought shares worth Rs 465.34 crore on Thursday, 4 June 2009.
In the political front, President Pratibha Patil addressed to a joint session of both houses on Thursday, 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.
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 investors expect 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.
Asian stocks gained today with the MSCI Asia Pacific Index set for its third weekly advance, after BHP Billiton Ltd. and Rio Tinto Group said they're forming an iron- ore venture and the yen fell to its lowest in a week. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.26% to 0.95%. China's Shanghai Composite down 0.05%.
The US markets advanced on Thursday 4 June 2009 as a report showed jobless claims fell last week and banks gained. The Dow Jones Industrial Average gained 74.96 points, or 0.9%, to 8,750.24. The S&P 500 index rose 10.70 points, or 1.2%, to 942.46, and the Nasdaq Composite rose 24.10 points, or 1.3%, to 1,850.02.
In economic news, initial jobless claims fell by 4,000 last week. Continuing claims fell to 6.73 million. It's the first time that it has declined since early January 2009, following 17 straight weeks of record highs. However, retail sales data disappointed. May 2009 sales reports from the nation's largest retailers showed 76% of retailers missed estimates.
Upmove may continue
The market is likely to stay firm on overnight gains in the US indices and strong Asian markets in morning trades. Major Asian indices like Nikkei, Hang Seng, Kospi, Straits Times and Jakarta Composite are trading with gains of more than 1% each. However, caution should be maintained on account of the prevalance of a intra-day volatility. Among the local indices, the Nifty could test higher levels around the 4540 level and has a support in the 4600-4650 range. The Sensex on the downside may slip to 14850 and may face resistance at 15150.
US indices registered gains on Thursday, led by energy, financial and tech shares, as investors welcomed signs of improvement in the labor market ahead of the big monthly jobs report. While the Dow Jones soared by 75 points at 8750, the Nasdaq advanced by 24 points at 1850.
The Indian ADR pack also rallied sharply on the US bourses. VSNL led the upmove and zoomed nearly 10% while ICICI Bank, Wipro, Dr Reddy, HDFC Bank, MTNL, Rediff and Patni Computers flared up over 1-7% each. While Satyam lost 15%.
Crude oil prices in the global market edged higher Nymex light crude oil for July series rose by $2.69 at $68.81 a barrel. In the commodity space, the Comex gold for August delivery advanced by $16.70 to settle at $982.30 an ounce.
Daily News Roundup - June 5 2009
ICICI Bank cuts retail floating, lending rates by 50 bps.(BL)
Aban Offshore asks bankers to moderate or change its huge debt repayment schedule and terms. (ET)
Gujarat NRE Coke arm plans to take over Australia’s Rey Resources.(BL)
Axis Bank announced plans to raise Rs30bn debt in local or overseas markets for meeting its tier-I and tier-II capital needs.(FE)
ITC plans 26 new Fortune hotels by 2011.(DNA)
Orbit Corporation to raise nearly Rs5bn through sale of shares to meet its long-term fund requirement. (ET)
MCX Stock Exchange announced the divestment of 6.48% equity to Union Bank of India and Bank of India.(BL)
Tata Motors to introduce Nano in Thailand and other markets in the South East Asia. (BS)
Top executives in ICICI Bank forgo either performance bonus or stock options during the year ended March 2009. (BS)
Suzlon's Pune wind park gets a major setback after a group of locals started an agitation demanding more money from the company for the acquired land. (BS)
Air India set to seek Rs120bn bailout.(DNA)
Kingfisher Airlines to raise Rs20bn from banks.(TOI)
SingTel seeks US$4 bn to shore up Bharti Airtel stake.(FE)
Satyam Computers to rationalize staff costs ahead of board meeting.(Mint)
Subhash Projects & Marketing has secured an order worth Rs1.1bn from NTPC.(BL)
Coal India will award tenders for development of seven large mines to global mining majors in 15-20 days.(BL)
Bank of Baroda, IOB and Andhra Bank to set up a Malaysian bank, India BIA Bank (Malaysia) Bhd.(ET)
The annual WPI-based inflation rose 0.48% during the week ended May 23, holding below 1% for the twelfth straight week.(BL)
Private players line up power projects of over 25,000MW.(BL)
Government likely to pass general and railway budgets, eco survey in July first week. (BS)
Government is drawing up a roadmap for listing and divesting of its equity in public sector units.(BL)
FTA between India, ASEAN to be signed in August.(Mint)
Climate conducive for growth!
It is your human environment that makes climate.
Climate change is among the several headwinds that we face today, even as the stock markets across the globe rejoice an environment of ‘green shoots.’ It’s a sobering thought to consider, as we mark the World Environment Day. In two decades the death toll from the adverse fallout of climate change could hit 50,000 and the annual economic cost is likely to be $340bn, warns a report.
Coming to the market, we may see modest gains at start on account of positive trend across global markets. From thereon, the direction will hinge on fresh global cues and the risk taking abilities of investors, both overseas and local ones. Given the soaring valuations, fresh buying may be a risky bet, particularly in small- and mid-caps.
The President has declared the intent of the new Government, but the challenge lies in execution. There could be some disappointment if the budget and other policy measures fail to live up to expectations. Some moderation in sentiment won’t do us any harm after the fast and furious run. Banks could see some positive action though.
In the global markets, UK is facing a potential political turmoil after a third cabinet minister resigned. The pound fell sharply to erase early gains on Thursday as rumours circulated that Gordon Brown, UK prime minister, had resigned. The British prime minister is facing a revolt, with MPs gathering signatures for a petition calling on him to stand down.
Meanwhile, fewer American workers filed claims for jobless benefits last week, signaling that the worst phase of the employment slump has passed. The report came a day ahead of the big monthly jobs report for May. US companies are expected to have cut 520,000 jobs from their payrolls after cutting 539,000 in the previous month. The unemployment rate, generated by a separate survey, is expected to have risen to 9.2% from 8.9% in the previous month.
Cosmo Films, Indiabulls Real Estate and Jyothy Labs will announce their results today.
US stocks climbed on Thursday, led by energy, financial and technology shares, as investors welcomed signs of improvement in the labor market ahead of the big monthly jobs report.
The Dow Jones Industrial Average gained 75 points, or 0.9%. The S&P 500 index added 10 points, or 1.1%. The Nasdaq Composite index added 24 points, or 1.3%.
Oil prices surged, along with the underlying stocks, after Goldman Sachs boosted its 2009 crude forecast to $85 a barrel and issued a 2010 forecast of $95 per barrel. Bank shares advanced as well, lifting the 24-share KBW Bank index by 4.8%.
The Labor Department's weekly jobless claims report offered a few encouraging signs in advance of Friday's big jobs report. The number of Americans filing first-time claims for unemployment dipped last week to 621,000 from a revised 625,000 in the previous week. Economists forecast 620,000 new claims.
But continuing claims - the number of Americans receiving claims for a second week or more - declined for the first time in 20 weeks.
In other economic news, first-quarter productivity increased 1.6%, revised up from its first reading of 0.8%. Economists forecast a revised gain of 1.2%.
Most May retail sales reports showed that the US consumer continues to struggle. May retail sales fell a sharper-than-expected 4.8%, according to Thomson Reuters, versus a gain of 1.1% a year ago.
Gap said same-store sales, or sales at stores open more than a year, fell 6% while Abercrombie & Fitch said same-store sales fell 28%. Both stocks tumbled.
No. 1 retailer Wal-Mart, which no longer issues monthly sales results and is therefore not included in the index, said that it will hire over 22,000 people this year to work at its new or expanded US stores.
The Securities and Exchange Commission said that it has filed fraud charges against former Countrywide CEO Angelo Mozilo and two others. The charges likely relate to the timing of Mozilo's sale of shares of the mortgage lender - and whether he benefited from dumping stock ahead of the company's near implosion and subsequent sale to Bank of America.
Intel will buy software maker Wind River for $884 million in cash, or $11.50 per share, a premium of more than 40% over Wind River's Wednesday closing price. Intel gained 1.2%, while Wind River rose 47%.
Regional bank Fifth Third Bancorp said it sold $1 billion of common stock and is on track to raise more than the $1.1 billion federal regulators have said it must as a result of the "stress tests." Shares gained 7.3%.
Treasury prices tumbled, raising the yield on the benchmark 10-year note to 3.71% from 3.54% Wednesday.
In currency trading, the dollar fell versus the euro and gained against the yen.
US light crude oil for July delivery rose $2.69 to settle at $68.81 a barrel on the New York Mercantile Exchange.
COMEX gold for August delivery rose $16.70 to settle at $982.30 an ounce.
Friday brings the May jobs report from the Labor Department. Employers are expected to have cut 520,000 jobs from their payrolls after cutting 539,000 in the previous month. The unemployment rate, generated by a separate survey, is expected to have risen to 9.2% from 8.9% in the previous month.
Although the report will be closely watched, the results are not likely to shake investors too much, unless they diverge considerably from forecasts. The labor market is generally recovers last compared to the rest of the economy.
European shares edged lower in a choppy session. The pan-European Dow Jones Stoxx 600 index slipped 0.2% to 209.47. Germany's DAX 30 index rose 0.2% to 5,064.80, the French CAC-40 index advanced 0.1% to 3,312.03 and the UK's FTSE 100 index edged up 0.1% to 4,386.94.
The European Central Bank and the Bank of England left interest rates on hold as expected on Thursday, as they focus on their bond-purchase programs. The ECB said that it will begin direct purchases of 60 billion euros worth of covered bonds in July.
Indian markets resumed its up run after ending on a flat note in the past coupled of trading session. Falling inflation and UPA’s reassurance of maintaining high economic growth with low inflation lifted the sentiment on Dalal Street.
All round buying was witnessed with the Realty, Capital, Goods, Power, mid-cap and the small-cap among the major gainers.
The Sensex gained 137 points or 0.9% to end at 15,007 after touching a high of 15,026 and a low of 14,599. The index had opened at 14,755 against the previous close of 14,871.
The NSE Nifty added 40 points or 0.9% to shut shop at 4,570.
Among the BSE Sectoral indices BSE Capital Goods index was the top gainer surging 3.3%, followed by the BSE Realty index up 3%, BSE Pharma index up 2.5%, BSE Power index up 2.1% and BSE PSU index up 1.7%.
Shares of Tata Motors gained by 2% to Rs369 after reports stated that the company has secured an order to supply 4,689 buses for the JNNRUM project. The scrip touched an intra-day high of Rs374 and a low of Rs352 and recorded volumes of over 0.9m shares on BSE.
Shares of GVK Power gained by 2% to Rs48 following the company’s announcement that it is planning to raise Rs25bn via the QIP route. The scrip touched an intra-day high of Rs50.4 and a low of Rs47 and recorded volumes of over 20.2mn shares on BSE.
Shares of Union Bank gained by 1% to Rs217 following reports that the company was eying business of Rs3trillion in FY10. The scrip touched an intra-day high of Rs220 and a low of Rs212 and recorded volumes of over 64,000 shares on BSE.
Shares of Pantaloon Retail advanced by 1% to Rs322. According to reports the company has delayed its restructuring plan as it awaits a favorable FDI policy. The scrip touched an intra-day high of Rs330 and a low of Rs309 and recorded volumes of over 0.2mn shares on BSE.
Shares of Network 18 surged by over 3.5% to Rs160. The company announced that it would raise Rs1.2bn through preferential allotment of shares to Asian private equity firm SAIF Partners, stated reports. The scrip touched an intra-day high of Rs166.8 and a low of Rs145 and recorded volumes of over 0.3mn shares on BSE.
With the BSE Sensex closing above the 15000 levels for the first time since September 2008, the bulls would look to capitalize and build on to further gain ground. However, one cannot rule out profit booking as Friday being the last trading session of the week, traders and investors would look to lock in some gains.
US stocks manage a good recovery
Initial claims report offsets the negative effect from retail sales data
US stocks ended in the green on Thursday, 04 June, 2009. Following a strong start, retail sales data took US stocks down for some time today. But an upbeat data from the Labor department regarding the latest jobless claims data once again took stocks higher. Energy stocks ended considerably higher today.
The Dow Jones Industrial Average ended higher by 75.6 points at 8,750. The Nasdaq Composite Index, ended higher by 24 points at 1,850. S&P 500 ended higher by 11 points at 942. The Dow started the day higher by 11 points and was down by almost 30 points at one point of time.
Indices traded in the green for most part of the day end finally ended with good gains. But the retail sales data effect came back on stocks and the same once again gave up most part of their gains. But with a late session rally with help from financial, material and energy sectors, stocks managed to end in the green, that too with good gains.
Almost all retailers - Macy's, Gap and Target etc, all reported today considerable declines for May same-store sales results, which have weighed on retailers for the entire session.
The Labor Department reported on Thursday, 04 June, 2009 that the number of continuing claims for state unemployment benefits declined by 15,000 to 6.74 million for the week ended 23 May, 2009. However, the four-week average of these claims rose by 88,750 to 6.69 million, a record-high level. First-time applications for benefits fell 4,000 to 621,000 in the week ended 30 May, 2009, reaching the lowest level since early May. The four-week average of these first-time claims rose 4,000 to 631,250.
After reaching new weekly record highs since January, the number of continuing claims for state unemployment benefits has finally declined.
The report detailed that the level of initial claims is up 68% from the same period in the prior year, and the level of ongoing claims is more than double last year's level. The insured unemployment rate - the proportion of insured workers who are collecting benefits - remained at 5%.
Initial claims represent job destruction, while the level of continuing claims indicates how hard or easy it is for displaced workers to find new jobs. Benefits are generally available for those who lose their full-time job through no fault of their own. Those who exhaust their unemployment benefits are still counted as unemployed if they are actively looking for work.
Crude prices rose substantially on Thursday, 04 June, 2009. Upbeat economic data on the job front from Labor Department and an increase in the price forecast of crude by Goldman Sachs took crude prices higher today. The lower dollar also played a role in crude prices firming up. On Thursday, crude-oil futures for light sweet crude for July delivery closed at $69.15/barrel (higher by $3.03 or 4.6%). Last week, crude ended higher by 7.5%.
Today Goldman Sachs increased its 2009 oil price forecast to $85 a barrel, up from $65 a barrel previously.
In the currency market on Thursday, the U.S. dollar index, a gauge of the greenback against six major currencies, continued its recent strength initially following Asian nation announcements that they didn't see an alternative to the greenback as a reserve currency. But then the dollar slipped after the European Central Bank decided to keep benchmark interest rates at 1%. The dollar had risen yesterday for first time in five sessions after data showed the European economy shrank 2.5% in the first quarter. The index lost 1% in April and 2.9% in March.
Economic news flow is expected to be slow ahead of Friday's opening bell and the nonfarm payroll report for May is the main one scheduled. The report is scheduled to hit news wires at 8:30 AM ET tomorrow.
GSPL
We recommend a ‘buy’ on Gujarat State Petronet from a short-term trading horizon. It is apparent from the charts of Gujarat State Petronet that its long-term downtrend halted at Rs 25. It formed a bullish double bottom reversal pattern between October 2008 and March 2009 before the trend reversed upward. The stock has been on an intermediate-term uptrend shaping higher peaks and higher bottoms, since the January low of Rs 26. In early May, the counter’s uptrend accelerated, conclusively breaching the 200-day moving average. It is currently trading way above this average. The weekly trading volumes have increased over the past five weeks. Both daily and weekly relative strength indices (RSI) are featuring in the bullish zone. The weekly moving average convergence and divergence indicator has entered into positive territory. Our short-term forecast for the stock is bullish. We expect its up move to continue, until it hits our price target of Rs 69 in the impending trading sessions. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 58.50.
via BL
Precious metals add back some glaze
Gold and silver add some glitter as dollar sheds earlier gains
Bullion metals rose on Thursday, 04 June, 2009 as the dollar gave up its yesterday's gains and ended lower today against its major counterparts. The dollar fell today reversing earlier gains after the European Central Bank decided to keep benchmark interest rates at 1%.
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 Thursday, Comex Gold for June delivery rose $16.7 (1.7%) to close at $981.2 an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 2%. Year to date, gold prices are higher by 12.7%.
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%) since then.
On Thursday, Comex silver futures for July delivery rose 58.5 cents (3.8%) at $15.895 an ounce. Earlier during the week, silver prices had risen to nine month high. 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 40% this year. For 2008, silver had lost 24%.
In the currency market on Thursday, the U.S. dollar index, a gauge of the greenback against six major currencies, continued its recent strength initially following Asian nation announcements that they didn't see an alternative to the greenback as a reserve currency. But then the dollar slipped after the European Central Bank decided to keep benchmark interest rates at 1%. The dollar had risen yesterday for first time in five sessions after data showed the European economy shrank 2.5% in the first quarter. 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 higher by Rs 165 (1.12%) at Rs 14,870 per 10 grams. Prices rose to a high of Rs 14,892 per 10 grams and fell to a low of Rs 14,666 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 632 (2.7%) higher at Rs 24,362/Kg. Prices opened at Rs 23,787/kg and rose to a high of Rs 24,395/Kg during the day's trading.
Crude shoots up
Prices rise as Goldnam Sachs increases price forecast of crude
Crude prices rose substantially on Thursday, 04 June, 2009. Upbeat economic data on the job front from Labor Department and an increase in the price forecast of crude by Goldman Sachs took crude prices higher today. The lower dollar also played a role in crude prices firming up.
On Thursday, crude-oil futures for light sweet crude for July delivery closed at $69.15/barrel (higher by $3.03 or 4.6%). 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 50% since then. Year to date, in 2009, crude prices are higher by 38.6%.
Today Goldman Sachs increased its 2009 oil price forecast to $85 a barrel, up from $65 a barrel previously.
The Labor Department reported on Thursday, 04 June, 2009 that the number of continuing claims for state unemployment benefits declined by 15,000 to 6.74 million for the week ended 23 May, 2009. However, the four-week average of these claims rose by 88,750 to 6.69 million, a record-high level. First-time applications for benefits fell 4,000 to 621,000 in the week ended 30 May, 2009, reaching the lowest level since early May. The four-week average of these first-time claims rose 4,000 to 631,250. After reaching new weekly record highs since January, the number of continuing claims for state unemployment benefits has finally declined.
In the currency market on Thursday, the U.S. dollar index, a gauge of the greenback against six major currencies, continued its recent strength initially following Asian nation announcements that they didn't see an alternative to the greenback as a reserve currency. But then the dollar slipped after the European Central Bank decided to keep benchmark interest rates at 1%. The dollar had risen yesterday for first time in five sessions after data showed the European economy shrank 2.5% in the first quarter. The index lost 1% in April and 2.9% in March.
EIA had reported yesterday 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.
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 Thursday, July reformulated gasoline rose 7.19 cents, or 3.8%, to $1.9735 a gallon, and July heating oil gained 6.16 cents, or 3.5%, to $1.7998 a gallon.
Natural-gas futures reversed their earlier losses today. The July contract gained 3.4 cents, or 0.9%, to $3.81 per million British thermal units. It had fallen more than 5% earlier after government data showed gas in storage rose more than expected last week. EIA reported today that inventories rose 124 billion cubic feet in 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 3,261/barrel, higher by Rs 159 (5.1%) against previous day's close. Natural gas for June delivery closed at Rs 180.1/mmbtu, higher by Rs 2/mmbtu (1.1%).
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