Thursday, June 18, 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
18-JUN-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,367386,879.03,-
18-JUN-2009,DISHTV,Dish TV India Limited,TRANSGLOBAL SECURITIES LTD.,BUY,2201948,38.02,-
18-JUN-2009,EVERONN,Everonn Systems India Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,95213,369.11,-
18-JUN-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,BUY,129208,371.86,-
18-JUN-2009,EVERONN,Everonn Systems India Lim,MULTIPLEX CAPITAL LTD.,BUY,100436,366.80,-
18-JUN-2009,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,BUY,1766572,228.97,-
18-JUN-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,7409306,50.47,-
18-JUN-2009,ISPATIND,Ispat Industries Limited,EXCEL FINCOM,BUY,7860488,22.15,-
18-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,9540940,22.16,-
18-JUN-2009,POLARIND,Polar Industries Ltd,NARAYANAN C G,BUY,96369,6.32,-
18-JUN-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,138761,1021.29,-
18-JUN-2009,SIL,Standard Industries Limit,DECENT FINANCIAL SERVICES PVT LTD,BUY,695000,19.44,-
18-JUN-2009,SUZLON,Suzlon Energy Limited,GENUINE STOCK BROKERS PVT LTD,BUY,8457640,105.64,-
18-JUN-2009,TIDEWATER,Tide Water Oil Co. (India,DECENT FIN. SER. (P) LTD,BUY,6750,3702.60,-
18-JUN-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,366586,879.81,-
18-JUN-2009,DISHTV,Dish TV India Limited,TRANSGLOBAL SECURITIES LTD.,SELL,2188607,38.20,-
18-JUN-2009,EVERONN,Everonn Systems India Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,95213,368.38,-
18-JUN-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,SELL,130008,372.34,-
18-JUN-2009,EVERONN,Everonn Systems India Lim,MULTIPLEX CAPITAL LTD.,SELL,100436,367.36,-
18-JUN-2009,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,SELL,1766572,229.14,-
18-JUN-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,7409306,50.59,-
18-JUN-2009,ISPATIND,Ispat Industries Limited,EXCEL FINCOM,SELL,7860488,22.20,-
18-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,8555940,22.29,-
18-JUN-2009,POLARIND,Polar Industries Ltd,NARAYANAN C G,SELL,96369,5.60,-
18-JUN-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,138761,1023.58,-
18-JUN-2009,SIL,Standard Industries Limit,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,818500,19.40,-
18-JUN-2009,SIL,Standard Industries Limit,J.P. MORGAN FLEMING ASSET MANAGEMENT (EUROPE) S.A,SELL,627470,19.49,-
18-JUN-2009,SUZLON,Suzlon Energy Limited,GENUINE STOCK BROKERS PVT LTD,SELL,8457640,105.69,-
18-JUN-2009,TIDEWATER,Tide Water Oil Co. (India,MADANLAL LTD,SELL,6750,3702.94,-
18-JUN-2009,UNITECH,Unitech Ltd,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,10501792,80.04,-
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
18/6/2009 512149 AVANCE TECHN VIPUL B GONDALIYA B 24401 27.20
18/6/2009 590061 BRUSHMAN IND ASSOCIATED CAPSULES LTD S 61705 13.40
18/6/2009 590061 BRUSHMAN IND ARISAIG PARTNERS (ASIA) PTE LTD S 96546 13.57
18/6/2009 532528 DATAM GLOB DELTA INFOSOLUTIONS PVT LTD B 2137000 23.00
18/6/2009 532528 DATAM GLOB ASHA KANODIA S 2122000 23.00
18/6/2009 521216 DHANALA RO S KARMANGHAT SECURITIES PRIVATE LIMITED B 22000 6.59
18/6/2009 521216 DHANALA RO S VAISHAK SHARES LIMITED S 23074 6.59
18/6/2009 531367 DOLLEX INDUT DEEPTI DUBEY B 201000 6.72
18/6/2009 531367 DOLLEX INDUT MAUD ESTATES PVT LTD S 200000 6.72
18/6/2009 509597 HARDCAS WAUD JAIKUMAR BOTHRA B 7970 304.77
18/6/2009 509597 HARDCAS WAUD VOCATION INV & FIN CO PVT LTD S 7957 304.80
18/6/2009 532532 JAIPRAK ASSO JEL TRUST S 15000000 200.00
18/6/2009 532532 JAIPRAK ASSO JCL TRUST S 7500000 200.32
18/6/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 95784 38.78
18/6/2009 516078 JUMBO BAG LT HEMENDRA AGARWAL B 60000 38.89
18/6/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 85758 38.93
18/6/2009 524826 JUPITER BIOS CLSA (MAURITIUS) LIMITED S 107000 62.96
18/6/2009 531731 KUVAM INTL PUNEET ARORA S 22200 7.22
18/6/2009 511728 KZLEASING RAJENDRA HARISHSINH PARMAR S 32500 12.21
18/6/2009 526753 ROSELABS LTD NIRMALADEVI TRILOKCHAND AGRAWAL S 261000 10.61
18/6/2009 500285 SPICEJET LTD ANGEL INFIN PRIVATE LIMITED B 2102332 21.74
18/6/2009 500285 SPICEJET LTD JMP SECURITIES PVT LTD B 1263495 21.72
18/6/2009 500285 SPICEJET LTD JMP SECURITIES PVT LTD S 1309461 21.72
18/6/2009 512048 SPLASH MEDIA BHANUMATI DHARAM RAJGIRI B 15000 56.20
18/6/2009 512048 SPLASH MEDIA ASHISH SHAH S 10000 56.20
18/6/2009 512048 SPLASH MEDIA SWEETA JAIN S 10500 56.20
18/6/2009 530017 STANDARD IND DECENT FINANCIAL SERVICES PVT LTD B 545000 19.76
18/6/2009 530017 STANDARD IND DEUTSCHE SECURITIES MAURITIUS LIMITED S 818500 19.75
18/6/2009 530017 STANDARD IND J.P. MORGAN INVESTMENT MANAGEMENT INC. S 441024 19.84
18/6/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD B 59067 54.28
18/6/2009 526133 SUPERTEX IND PATEL NITABEN SHAILESHBHAI B 63000 54.39
18/6/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 86331 54.39
18/6/2009 590093 TRIMURTHI DR PISUPATI SURESH B 50800 37.38
18/6/2009 524264 UNIMER INDIA EXPLICIT FINANCE LIMITED B 104050 7.72
18/6/2009 524264 UNIMER INDIA INDUSTRIAL FINANCE CORPORATION OF INDIA S 110000 7.72
18/6/2009 531390 UPSURGE INVS NEW ERA ADVISORS PVT LTD B 100000 13.06
18/6/2009 532917 VARUN INDS KANWARLAL MANEKCHAND JAIN B 122068 37.50
18/6/2009 531874 VENUS VENT BESTO TRADECOMM PRIVATE L IMITED B 50000 52.23
18/6/2009 524576 VIVID IND ABHILASHA MONEY OPERATIONS PVT LTD B 30000 7.09
18/6/2009 524576 VIVID IND NITA ASHOK GANDHI S 31000 7.09
18/6/2009 512217 WOOLITE MERC UMESH PURUSHOTTAM CHAMDIA B 14151 22.67
The domestic stock market closed the extreme volatile session on a deep red note by extending its losses for the second straight day. The market dipped into the red zone after hovering in the negative and positive terrain till the mid session on the back of fears that government may rollback excise duty cuts in order to return to fiscal prudence amid slack revenue collections. This dampened the sentiments of the investors that led to heavy selling pressures across the sectoral indices. On the other hand, India’s wholesale price index dipped 1.6% for the week ended June 6, 2009 as against the rise of 0.13% for the previous week ended May 30. From the sectoral front, Realty, Metal, Power stocks were badly hit on heavy selling pressures across the counters.
Tracking the weakness in the global markets, the domestic key benchmark indices opened with a negative gap but bounced back soon on selective buying across the indices. The market kept on hovering in the positive and negative territory till the mid session and touch day’s high tracking the fall in India’s inflation to the negative terrain. However, the market completely changed its course to continue its southward journey after the afternoon trade to touch the day’s low. The market managed to comes off marginally from the day’s low in the final hour of the session. In the global arena, the US Markets closed flat. The discouraging forecast from FedEx about its downside guidance and lower ratings for 22 banks by S&P enforced broad based selling. The Financial stocks were under huge selling pressure after the opening bell as the S&P has lowered its ratings and also revised its outlooks on 22 banks. US Bancorp, Wells Fargo and Fifth Third were amongst those included in the ratings. The Consumer Price Index inclined by 0.1% which hardly affected the market sentiments.
Inflation for the week ended June 6 slipped to negative as it came in at -1.6%. The inflation slipped into negative territory for the first time since 1977-78. This was mainly due to high base effect and partly due to the economic slowdown. The annual rate of inflation came in at -1.61% (provisional) for the week ended June 6 as compared to 0.13 % (provisional) for the previous week ended 30 May and 11.66% during the corresponding week of the previous year. The WPI for all commodities was up 0.04% at 232.7 in the week ended June 6, 2009 from 232.6 in the previous week.
Among the Sensex pack 24 stocks ended in negative territory while 6 closed in negative. The market breadth indicating the overall health of the market remained weak as 2,094 stocks closed in red while 534 stocks closed in red while 56 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 257.31 points or 1.77% at 14,265.53 and NSE Nifty fell by 104.75 points or 2.40% at 4,251.40. The BSE Mid Caps and Small Caps closed with losses of 144.21 and 214.10 points at 4,876.86 and 5,572.44. The BSE Sensex touched intraday high of 14,630.73 and intraday low of 14,188.25.
Losers from the BSE Sensex pack are ACC (8.25%), JP Associates (6.73%), Tata Steel (6.71%), Hindalco Inds (6.66%), Grasim Inds (6.14%), NTPC (5.33%) and ONGC (4.87%).
Gainer from the BSE Sensex pack is SBI (2.33%), Sun Pharma (1.54%), Tata Motors (1.34%) and Infosys (0.64%).
On the global markets front the Asian markets which opened before the Indian market, closed in red. Hang Seng, Strait Times, Nikkei, Seoul Composite and Taiwan Weighted closed lower by 1.70%, 1.51%, 1.39%, 1.11% and 0.83% at 17,776.66, 2,237.20, 9,703.72, 1,375.76 and 6,144.53 respectively.
European markets which opened after the Indian market are trading in negative. In Frankfurt the DAX index is trading lower by 0.17% at 4,791.97 and in London FTSE 100 is trading down by 0.66% at 4,250.30.
The BSE Realty index dropped (5.80%) or 196.37 points to close at 3,190.13. Main losers are Mahindra Life (9.33%), HDIL (9.36%), Penland (8.85%), Unitech (8.93%), India Bull Real (6.11%) and Akruti City (5%).
The BSE Metal index plunged (4.88%) or 551.12 points at 10,737.38. Scrips that mostly lost are JSW Steel (9.32%), Ispat Industries (7.99%), Jindal Saw (7.05%), Tata Steel (6.71%), Hindalco Industries (6.66%) and Hindustan Zinc (6.54%).
The BSE Power index ended lower by (3.83%) or 110.77 points at 2,781.45 as Suzlon Energy (10.51%), Torent Power (7.62%), Power Grid (7.37%), NTPC (5.33%) and Reliance Power (3.67%) ended in negative territory.
The BSE Capital Goods index fell (3.73%) or 454.01 points to close at 11,722.64. Losers are Punj Lloyd (7.55%), Praj Industries (7.12%), Elecon Engneering (4.93%), SKF India (4.22%), Lakshmi Machine Work (4.72%) and Jyoti Structure (4.80%).
The BSE Oil and Gas decreased (2.16%) or 205.93 points at 9,308.44. Losers are Aban Offshore (9.55%), RNRL (5.09%), ONGC (4.87%), Essar Oil (4.77%) and BPCL (3.48%).
The BSE Consumer Durables index declined (2.07%) or 59.87 points to close at 2,832.44. Losers are Rajesh Export (7.23%), Gitanjali Gems (4.85%), Videocon Industries (4.67%) and Titan Industries (0.41%).
The BSE Bankex index decreased (0.71%) or 57.34 points at 7,965.77. Losers are Allahabad Bank (3.14%), Indian Overseas Bank (2.97%), ICICI Bank (2.58%), Union Bank (2.38%) and Yes Bank (2.18%).
Tata Teleservices surged 3.94% to close at Rs36.90. Israel based ECI Telecom bagged a $70 mn contract from Tata Teleservices on Wednesday to deliver the fixed-broadband access network across India. ECI has already rolled out the service for Tata Tele in Hyderabad as well as Bangalore, Delhi, Ahmedabad, Vizag, Vijayawada, Surat and Baroda. The broadband solution of ECI would enable TTSL to offer triple-play services and applications such as IPTV as well as video on demand, high speed broadband internet, VoIP and other bandwidth intensive services.
Infosys Technologies inched up by 0.64% to Rs1721.45. The company has bagged a $10 million BPO deal from Microsoft. This is a three-year contract for back-end support such as data processing.
SBI shot up by (2.33%) to Rs. 1,702.20. The bank is planning to merge two of its little-known subsidiaries SBI Commercial and International Bank (SBICI), a wholly-owned subsidiary of SBI and factoring services provider Global Trade Finance (GTF) in which SBI owns a 92.60% stake
Nifty June 2009 futures were at 4282, at a huge premium of 30.60 points as compared to the spot closing of 4251.40. Turnover in NSE's futures & options (F&O) segment surged to Rs 83,936.67 crore from Rs 79,470.14 crore on Wednesday, 17 June 2009.
Reliance Industries (RIL) June 2009 futures were at a premium at 2044.10 compared to the spot closing of 2025.05.
State Bank of India June 2009 futures were at premium at 1715.10 compared to the spot closing of 1703.30.
Suzlon Energy June 2009 futures were at premium at 102 compared to the spot closing of 100.05.
In the cash market, the S&P CNX Nifty lost 104.75 points or 2.40% at 4251.40.
Hang Seng; Sensex ends lower while Shanghai continues gaining further
Stock market in Asian region closed mixed on Thursday, 18 June 2009, as investors choose a cautious path, as doubts about a quick economic revival surfaced again following mixed reports from the U.S., Europe and other regions. Considering the uncertainness, the markets across the globe have been finding it increasingly tough to hold at higher levels over the past few sessions.
On Wall Street, stocks ended modestly lower but in a mixed mode. US stocks opened the day in the red, but with the help of consumer stocks, indices managed to change direction. But disappointing guidance from Fed Ex halted the upward movement of stocks. Selling was witnessed in the materials sector, energy sector, and financial sectors. The consumer price index report checked in line with expectations but could do little to fuel stocks.
The Dow Jones Industrial Average ended lower by 7.46 points at 8,497. The Nasdaq Composite Index, ended higher by 11.88 points at 1,808. S&P 500 ended lower 1.2 points at 910.
In the commodity market, crude oil pared gains, trading near $71 a barrel in New York, as concern that demand is falling outweighed potential supply disruptions in Nigeria. The Nigerian militants said they attacked a “major” delivery pipeline at Shell’s Forcados terminal using explosives at 8:30 p.m. local time yesterday.
In other news, U.S. crude oil stockpiles last week fell a more-than- expected 3.87 million barrels to 357.7 million barrels. Oil dropped earlier yesterday after the weekly Energy Department report showed that fuel stockpiles increased. Gasoline inventories climbed 3.39 million barrels to 205 million last week, the biggest gain since January. Gasoline use increased 213,000 barrels a day to 9.35 million.
Crude oil for July delivery was at $70.96 a barrel, down 7 cents, in electronic trading on the New York Mercantile Exchange at 1:06 p.m. Singapore time. The contract earlier rose as much as 55 cents, or 0.8 percent, to $71.58 a barrel. Prices are up 59 percent this year and reached $73.23 last week.
Brent crude for August settlement was at $70.66 a barrel, down 19 cents, on London’s ICE Futures Europe exchange at 1:04 p.m. Singapore time. The contract earlier traded as high as $71.31 a barrel.
Gold, little changed in Asia, may gain after the dollar’s rally this week failed to push prices below their 100-day moving average. Gold for immediate delivery traded at $938.25 an ounce at 1:38 p.m. in Singapore, after adding as much as 0.5 percent to $943.63 an ounce today.
In the currency market, US dollar weakens again as crude oil rebounded back to above 70 level on tensions in Iran and Nigeria. Though the downside is limited so far as greenback is somewhat supported by risk aversion on falling Asian stocks. The rebound of dollar and yen since Monday was disappointing as key levels in major pairs and yen crosses are still intact.
The Japanese yen edged down against greenback on Thursday. The Japanese currency quoted at 96.05 against greenback.
The Hong Kong dollar was trading at HK$ 7.7502 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 trade, the Australian dollar has closed lower, with a lack of definitive economic data sapping the unit's momentum. At the local close, the dollar was trading at $US0.7967, down from Wednesday's close of $US0.7993.
In Wellington trades, the NZ dollar ended at US63.02c little changed from US63.05c yesterday. The New Zealand dollar consolidated in a fairly narrow range in its domestic session.
The Taiwan dollar weakened slightly against the greenback. The Taiwan dollar fell against the US dollar as it closed trading lower at NT$ 32.9000, down by NT$ 0.015 from Wednesday’s close of NT$32.8850.
Coming back in equities, Asian shares were mixed as investors tried to pin down a near-term direction for markets, with exporter shares in Tokyo hurt by ongoing resilience in the Japanese yen.
In Japan, the stock index plummeted in the absence of decisive lead from Wall Street overnight, firmer greenback, and lower commodities prices. The market plummeted on broad based slumps across most of sectors in Tokyo exchange amid rekindled concerns about the state of the global economy and financials institution after S&P said the business environment for U.S. banks will become less favorable.
The Nikkei 225 Stock Average index tumbled 137.13 points, or 1.4% to 9,703.72, while the broader Topix index stumbled 11.82 points, or 1.28% to 911.21.
On the economic front, the Finance Ministry reported that the Japanese resident became net sellers of foreign-based stocks last week, but remained net buyers of foreign bonds and notes. Residents of Japan sold a net 36.8 billion yen in foreign stocks for the week of June 7 - 13. Japan residents bought a net 550.2 billion yen in foreign bonds and notes for the week.
In Mainland China, stock index endured gains for second consecutive day, with broad based gains across ten sectors. Financials led the rally after the World Bank reinforced the belief that the economy is recovering, meanwhile energy outperformed as crude oil prices rebounded.
The Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, jumped 1.56%, or 43.78 points, to 2,853.90, while the Shenzhen Component Index climbed up 1.01%, or 111.14 points, to 11,151.63.
In Hong Kong, the stock market endured loses for fourth straight day, with broad based slumps across the board amid uncertainty about the prospects for a further pickup in the economy.
The blue-chip Hang Seng Index shrank 307.94 points or 1.7% to close at 17,776.66. The Hang Seng China Enterprise Index, which tracks the overall performance of 43 Chinese mainland state-owned enterprises on the Hong Kong Stock Exchange, slipped 277.84 points or 2.6% to 10,422.31 points.
In Australia, the share market ended lower for a fourth straight day as the sell-off of mining stocks goes on. The benchmark S&P/ASX200 index lost 0.3%, or 12 points, to 3892.1, while the broader All Ordinaries index was down 0.4%, or 16.8 points, at 3887.4.
In New Zealand, benchmark index moved forward despite a drop in most of the Asian markets on Thursday. The share market registered a gain after falling for two sessions in a row as low investor sentiment hampered global markets. The NZX50 rose 0.73% or 20.20 points to 2798.24. The NZX 15 rose 1.44% or 73.01 points to close at 5127.78.
In South Korea, stocks sank as investors dumped steel, tech and other large-cap shares amid lingering uncertainty over an economic recovery and lack of new momentum backing up recent rallies. The benchmark Korea Composite Stock Price Index (KOSPI) slid 15.41 points to 1,375.76, the fourth consecutive day of declines.
In Singapore, the stocks index extended losing streak for fourth straight day, as investors booked profits due to uncertainty about the prospects for a further pickup in the economy. Lower commodity prices and valuation concerns following recent run up also impacted market sentiment. Major heavyweight were sold for gains as investors speculated that this year’s rally has outpaced prospects for growth in the economy and corporate earnings. The blue chip Straits Times Index tumbled 34.25 points, or 1.51%, to 2,237.2.
In Taiwan, stock market prolonged its downward rally for fifth straight session, as investors continued profit booking on concerns over the local market's momentum after months of rally.
The main Taiex share index extended its downward trend for fifth straight session as the Taiex index slumped 51.38 points or 0.83%, closing the day at 6144.53, another lowest closing since 30 April 2009 when market closed at 5992.57.
On the economic front, Perng Fai-nan, governor of the central bank in Taiwan, with reference to a report by JP Morgan, a world-leading financial services firm, indicated that Taiwan, Japan and the United States would see positive economic growth in the second quarter of 2009, and Taiwan would see a recovering economy in the follow quarters of 2009.
In Philippines, the stock market continued to take a downhill for the third consecutive day tracking the overnight losses on Wall Street as investors continued to remain worried about the uncertainty in the global economy. At the concluding bell, the benchmark index PSEi fell 0.30% or 7.49 points to 2,434.26, while the All Shares index lost 0.10% or 1.60 points to 1,574.27.
In India, the key benchmark indices extended losses for the second straight day as investors took profits after a recent solid surge in share prices. A newspaper report that the government may rollback excise duty cuts in a bid to return to fiscal prudence amid slack revenue collections, weighed on the sentiment.
The BSE 30-share Sensex was down 257.31 points or 1.77% to 14,265.53. The S&P CNX Nifty was down 104.75 points or 2.40% to 4,251.40.
Elsewhere, Malaysia's Kula Lumpur Composite index went down 1.54% or 16.49 points to 1054.41 while Indonesia’s Jakarta composite index ended the day lower at 1950.99.
In other regional market, European shares declined on Thursday, falling for the fifth session in a row, although Dutch financial conglomerate ING Group and mining giant Xstrata shares advanced after broker upgrades. On a regional level, the U.K. FTSE 100 index declined 0.2% to 4,269.44, the German DAX index slipped 0.1% to 4,796.98 and the French CAC-40 index moved down 0.3% at 3,151.86.
Looking ahead for the day, in the European session, the Swiss national bank will release its interest rate
decision followed by retail sales data from UK for May. In US session, Canadian CPI will be the main focus. Initial jobless claims in US accompanied by Philly Fed survey for June will bear the evening focus.
The key benchmark indices extended losses for the second straight day as investors took profits after a recent solid surge in share prices. A newspaper report that the government may rollback excise duty cuts in a bid to return to fiscal prudence amid slack revenue collections, weighed on the sentiment. Selling by foreign funds also weighed on the sentiment The BSE 30-share Sensex was down 257.31 points or 1.77%, off close to 360 points from the day's high and up close to 80 points from the day's low. The barometer index has plunged 692.38 points or 4.62% in the past two trading sessions.
Realty, capital goods and metal stocks led the fall. Index heavyweight Reliance Industries slipped in volatile trade. The market breadth was weak.
The market was volatile. The market dipped in red in early trade after swinging between the positive and negative terrain at the onset of the trading session. The market bounced back soon after extending losses in early trade. The Sensex moved into green from red. It later slipped into the red again in mid-morning trade. The market surged to the fresh intraday high in afternoon trade after the wholesale price index fell into the negative terrain. A total reversal of trend was witnessed in afternoon trade as the Sensex tumbled to intraday low. The market extended losses later. The market came off the lower level in mid-afternoon trade.
The government may reportedly spare select sectors from a proposed increase in excise duty rates in the upcoming budget, as officials consider plans for a wholesale rollback of recent duty cuts, in a bid to return to fiscal prudence amid slack revenue collections. The Central value added tax (Cenvat) which covers almost 96% of the goods that attract excise duty, was cut to 10% last December and further to 8% in February 2009 under a series of fiscal stimulus measures, launched by the government to shield the economy from the slowdown.
A lot of these cuts could be reversed in the upcoming Budget on 6 July 2009. There could be lower rollback in case of sectors where recovery was not strong. The rollback in duty cuts could be as four percentage points in those sectors expected to turn buoyant soon. Steel and cement could see the excise duty go up to 12%, the report said.
Fears of a rollback of Cenvat cut offset optimism that falling interest rates in India may help sustain strong domestic demand and a larger capital expenditure programme of India Inc. Inflation based on the wholesale price index declined 1.6% in the year through 6 June 2009 compared with the previous week's annual rise of 0.13%, data released by the government today, 18 June 2009, showed. That's the first drop since December 1978, according to the central bank's monthly data.
Interest rates are falling thanks to ample liquidity in the banking system, low headline inflation and a loose monetary policy stance of the Reserve Bank of India. However, inflation may rise if oil and metal prices which have risen sharply in 2009 continue to rally.
Finance minister Pranab Mukherjee last Wednesday said banks should provide credit at reasonable rates to spur growth, saying cuts in official rates by the Reserve Bank of India had not been passed on.
European stocks fell after fluctuating between gains and losses in volatile trade. Key benchmark indices in France, Germany and UK were down by between 0.13% to 0.58%.
British retail sales volume tumbled 0.6% in May 2009, leaving sales 1.6% below the level seen in the same month last year, the Office for National Statistics reported Thursday.
Asian stocks fell today amid concerns a rally since March 2009 had made stocks too expensive relative to earnings prospects. Key benchmark indices in Hong Kong, Singapore South Korea ,Taiwan and Japan were down by between 0.83% to 1.7%.
But China's Shanghai Composite rose 1.56% after the World Bank raised its growth forecast for the country this year. The country's economy will expand 7.2% this year, up from a 6.5% forecast in March, the bank said.
Trading in the US index futures indicated Dow could rise 11 points at the opening bell today, 18 June 2009.
The US markets closed yesterday's session flat. The Dow Jones industrial average was down 7.49 points, or 0.1%, to 8,497.18. The broader S&P 500 index fell 1.26 points, or 0.1%, to 910.71, and the Nasdaq Composite Index was up 11.88 points, or 0.7%, to 1,808.06.
On the economic front, mortgage applications fell 15.8% to 514.4 last week, the lowest in nearly seven months. Trade deficit fell nearly 35% to around 101 billion dollars in the first quarter, the lowest since the fourth quarter of 2001. But, consumer prices edged up marginally higher, up 0.1%.
Closer home, the data on advance tax payments reported since Monday for the first quarter of the financial year indicated banks and fast moving consumer goods (FMCG) firms have done well in the first quarter, but realty companies continue to perform badly. Automobile sector have also paid higher taxes this year, show the revenue department's initial estimates. Indian companies paid around Rs 23,000 croe in advance tax for the first quarter of FY 2010, almost flat at the previous year's receipts.
Among manufacturing sector companies, Reliance Industries' first installment of advance tax payments fell by 7.65% to Rs 314 crore. Similarly, almost all Tata group companies, barring Tata Power, have paid lower advance tax.
Engineering major Larsen and Toubro has seen a 15.79 % rise, while Mahindra and Mahindra's advance tax payment went up by 25%.Engineering major Larsen and Toubro has seen a 15.79 % rise, while Mahindra and Mahindra's advance tax payment went up by 25%.The banking sector has put up a healthy show. State Bank of India is the highest taxpayer during the first quarter of 2009-10 with a 61.09% jump to Rs 1,068 crore. HDFC Bank has paid 16.28% higher advance tax to Rs 250 crore.
Even smaller banks such as IndusInd Bank (122 % increase to Rs 20 crore), Dena Bank (75 % rise to Rs 35 crore) and Yes Bank (42 % increase to Rs 27 crore) have followed the trend.
ACC posted 11% rise in advance tax to Rs 600 crore. India Oil Corporation paid advance tax of Rs 1.30 crore, HPCL paid advance tax of Rs 0.15 crore and BPCL paid advance tax of Rs 0.4 crore advance tax in Q1 June 2009. These three PSU OMC had paid nil advance tax in Q1 June 2008. NTPC (up 46% to Rs 275 crore), Bhel (up 7% to Rs 320 crore) were other higher tax payers.
Foreign funds have sold shares in last three days after aggressively buying in the past three months or so. Foreign funds sold shares totaling Rs 1,169.80 crore in three trading sessions from 15 June 2009 to 17 June 2009. FII inflow in June 2009 totaled Rs 4,962.40 crore (till 17 June 2009). FII inflow in calendar year 2009 totaled Rs 26,281.80 crore (till 17 June 2009).
Finance Minister Pranab Mukherjee would present the Union Budget on 6 July 2009. The Railway Budget will be presented on 3 July 2009 and the Economic Survey would be presented on 2 July 2009.
Indian stocks have soared in the past three months on a view that ample global liquidity and a return of risk appetite will help India Inc help raise funds for expansion which in turn will boost corporate profits. India Inc has already raised almost Rs 5,000 crore from three qualified institutional placements (QIPs) so far in 2009 and announced plans to raise another Rs 20,000 crore.
Many equity analysts have been raising earnings forecasts of India Inc on hopes that the new government will provide thrust on the infrastructure sector and push economic reforms to boost growth. Citigroup expects the economy to grow by 6.8% in 2009/10 and 7.8% in 2010/11.
A comfortable victory last month for the Congress-led United Progressive Alliance (UPA) government in elections for the 15th Lok Sabha has raised hopes for economic reforms. Reforms virtually came to a halt in the past five years of the Congress-led alliance government at the centre, when the Communists provided support to the government from outside for a large part of the five-year term. Left parties are opposed to economic reforms.
Investor expectations from the new government are high. Investors expect financial sector reforms such as increase in the cap on foreign direct investment in insurance sector to 49%, from 26% at present.
Unveiling the agenda of the government, President Pratibha Patil in her speech addressed to a joint session of both houses early this month had indicated government's intension to divest stake in state-run firms. The government, however, intends to retain control over state-run firms and will continue to hold at least 51% stake. But some investors are concerned that the government's two key allies viz. the DMK and Trinamool Congress (TC) may oppose economic reforms.
Finance minister Pranab Mukherjee recently said there was a need to find ways to bring the economy back to higher growth path without increasing the fiscal deficit. He said the government would focus on infrastructure, agriculture and employment generating sectors to protect growth and jobs.
But rising metal prices is a cause of concerns for manufacturing companies as their raw material costs may shoot up.
The government's oil subsidy bill may remain high and it could continue to put pressure on the already high fiscal deficit if the government does not resort to decontrol of oil prices. However, the surging rupee against the dollar may mitigate the impact to some extent as India is a major importer of crude.
Prime Minister Manmohan Singh recently said India will achieve an economic growth of at least 7% this fiscal and promised more resources for areas like infrastructure and public services. He said India will be able a growth rate of 8-9%, even when the world grows at a lower rate.
The Prime Minister said the reason behind his optimism was that India's savings rate, which determines the money that can be deployed for development projects, was still high at 35% of gross domestic product (GDP).
The BSE 30-share Sensex was down 257.31 points or 1.77% to 14,265.53. The Sensex rose 107.89 points at the day's high of 14,630.73 hit in early afternoon trade. At the day's low of 14,188.25, the Sensex fell 334.59 points in mid-afternoon trade.
The S&P CNX Nifty was down 104.75 points or 2.4% to 4,251.40. Nifty June 2009 futures were at 4282, at a premium of 30.60 points as compared to the spot closing of 4,251.40. Turnover on NSE's futures & options (F&O) segment surged to Rs 83,936.67 crore from Rs 79,470.14 crore on Wednesday, 17 June 2009.
BSE clocked a turnover of Rs 7,148 crore, higher than Rs 6,968.96 crore on Wednesday, 17 June 2009.
The Sensex has jumped 4,618.22 points or 47.87% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 6,105.13 points or 74.81%
The market breadth turned weak from a positive breadth in early trade. On BSE, 543 shares rose as compared with 2,090 that declined. A total of 58 shares remained unchanged.
From the 30 share Sensex pack 24 stocks fell and rest rose.
The BSE Mid-Cap index was down 2.87% and the BSE Small-Cap index lost 3.7%. Both the indices underperformed the Sensex.
The BSE Realty index (down 5.8%), the BSE Metal index (down 4.88%), the BSE Power index (down 3.83%), the BSE Capital Goods index (down 3.73%), the BSE PSU index (down 3.49%), the BSE Oil & Gas index (down 2.16%), the BSE Consumer Durables index (down 2.07%), underperfomed the Sensex.
The BSE IT index (up 0.17%), the BSE Healthcare index (down 0.41%), the BSE TECk index (down 0.47%), the BSE FMCG index (down 0.6%), the BSE Bankex (down 0.71%), the BSE Auto index (down 0.92%) outperformed the Sensex
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.26% to Rs 2,024.95 extending steep losses this week triggered by an unfavourable court ruling on gas sales. The stock was volatile and moved between the high of Rs 2,072 and low of Rs 1,991.15. The Bombay High Court has directed RIL and Reliance Natural Resources (RNRL) to sign gas supply deal.
The court has asked RIL to supply 28 million metric standard cubic meters per day (mmscmd) of gas for 17 years at $2.34 per million metric British thermal unit (mmbtu) to RRNL. This is much lower than the price fixed by the government for gas sale from the RIL block in the KG basin at $4.2 million per metric British thermal unit. The lower gas sale price will result in lower-than-expected earnings from gas sales for RIL.
RIL's advance tax payment fell 7.65% to Rs 1,068 crore in Q1 June 2009 over Q1 June 2008.
In January 2009, the Bombay High Court had issued an interim order saying Reliance Industries was allowed to sell gas at $4.2 per million British thermal units from its KG-D6 block in the Krishna Godavari basin off eastern India, pending a final judgment.
India's largest oil exploration firm by sales ONGC fell 4.87% as its advance tax fell 33% to Rs 890.50 crore in Q1 June 2009 over Q1 June 2008.
PSU OMCs fell on reports the government may reimpose the duty on crude oil imports, its biggest source of customs revenue before the levy was scrapped last year, as it looks for fresh revenue streams to rein in mounting fiscal deficit. BPCL, HPCL and IOCL fell by between 2.2% to 3.48%.
The government had removed the duty last June to cushion domestic customers from the impact of global crude oil prices, which hit a record high of $147 per barrel. PSU OMCs import a large part of their crude oil requirements.
Rate sensitive realty stocks fell on profit taking after the recent surge triggered by expectations that stability at the Centre will attract more money from foreign investors into the sector which in turn will boost growth. Akruti City, Phoenix Mills, DLF, Indiabulls Real Estate, Unitech fell by between 3.3% to 8.93%.
Unitech and Indiabulls Real Estate, have already raised funds through qualified institutional placements (QIPs). A number of other realty funds have decided to raised funds by way of QIPs. The promoters of DLF last month sold a 10% stake in the secondary equity markets.
Metal stocks fell after LMEX, a gauge of six metals traded on the London Metal Exchange dipped 0.33% yesterday extending losses for a fourth day in a row. It was the longest losing stretch since February 2009. National Aluminum Company, Hindustan Zinc, Hindalco Industries, Jindal Steel, Steel Authority of India fell by between 0.49% to 6.66%.
India's largest steel maker by sales Tata Steel fell 6.71%. Its advance tax payment fell 36.39% to Rs 230 crore in Q1 June 2009 over Q1 June 2008.
Capital goods stocks fell on profit taking after a recent sharp surge triggered by hopes the government may boost spending on the infrastructure sector. Siemens, BEML, Thermax, Bharat Heavy Electricals, ABB, Punj Lloyd, fell by between 2.72% to 7.55%.
India's largest engineering and construction firm by sales Larsen & Toubro fell 3.49%. Its advance tax payment rose 15.79% to Rs 110 crore in Q1 June 2009 over Q1 June 2008.
Cement stocks fell on fears of a complete rollback in excise duty cuts in the forthcoming budget. ACC, Ultratech Cements, Ambuja Cements, India Cements, Grasim Industries fell by between 4.92% to 8.25%.
IT stocks rose on reports the forthcoming Union Budget may extend the corporate tax holiday enjoyed by export-oriented units and software parks by three more years, as the government looks forward to clearing the air for companies in these segments reeling under a demand slump in key Western markets.
India's second largest software firm by sales Infosys Technologies rose 0.64% as its American depository receipt (ADR) rose 1.06% on Wednesday. Meanwhile software giant Microsoft has reportedly awarded a $10-million BPO deal to the firm.
India's largest software services exporter by sales TCS rose 0.2%. TCS's advance tax payment fell 33.33% to Rs 50 crore in Q1 June 2009 over Q1 June 2008. But, India's third largest software services exporter by sales Wipro fell 0.24%. Its ADR was flat on Wednesday.
Healthcare stocks fell on profit taking after recent surge triggered by hopes the government will give primary importance to healthcare segment and health of citizens. Ranbaxy's Laboratories, Cipla, Lupin, Sterling Biotech, Pfizer fell by between 0.43% to 3.96%.
Auto stocks fell on profit taking after a recent surge triggered by improved sales in the month of May 2009. India's largest car maker by sales Maruti Suzuki India fell 2.28%.
India's largest tractor maker by sales Mahindra & Mahindra fell 1.03%. Its advance tax payment rose 25% to Rs 17.5 crore in Q1 June 2009 over Q1 June 2008.
But, India's largest commercial vehicle maker by sales Tata Motors rose 1.34% on reports the company is gearing up for a big-ticket launch of a sports utility vehicle by 2010.
Bank stocks fell as higher bond yields will result in diminution in valuation of banks' bond portfolio. India's largest private sector bank by net profit ICICI Bank fell 2.58% . Its American depository receipt (ADR) fell 0.57% on Wednesday, 17 June 2009. ICICI Bank's advance tax payment rose 7.64% to Rs 366 crore in Q1 June 2009 over Q1 June 2008.
India's second largest private sector bank by operating income HDFC Bank fell 1.57%. Its ADR fell 2.51% on Wednesday. HDFC Bank's advance tax payment rose 16.28% to Rs 250 crore in Q1 June 2009 over Q1 June 2008.
But, India's biggest bank in terms of branch network State Bank of India (SBI) rose 2.33%. SBI's advance tax payment rose 61.09% to Rs 1,068 crore in Q1 June 2009 over Q1 June 2008. SBI cut deposit rates across all tenors by 25 basis points with effect from 15 June 2009.
SBI chairman O.P. Bhatt recently said SBI's first priority is to absorb its associate banks. It is also looking to grow by buying domestic banks.
India's biggest dedicated housing finance firm by operating income Housing Development Finance Corporation (HDFC) fell 0.38%. HDFC plans to raise up to Rs 4000 crore after its board recently approved a proposal to raise Rs 4000 crore by selling bonds and warrants. The maximum dilution on conversion of all warrants to shares would be 3.5% of the expanded capital.
HDFC and HDFC Bank are reportedly set to reduce interest rates on term deposits by up to 0.25%.
But bond yields are rising due to concerns over government's hefty borrowing programme this year
Jaiprakash Associates clocked the highest volume of 4.22 crore shares on BSE. Unitech (2.82 crore shares), Satyam Computer Services (2.44 crore shares), Reliance Natural Resources (2.38 crore shares) and Ispat Industries (1.93 crore shares) were the other volume toppers in that order.
Jaiprakash Associates clocked the highest turnover of Rs 808.48 crore on BSE. Reliance Industries (Rs 327.76 crore), Reliance Capital (Rs 260.14 crore), Unitech (Rs 216.09 crore) and Reliance Natural Resources (Rs 215.83 crore) were the other turnover toppers in that order.
Gold and silver rise due to consumer price report
Precious metal gave up earlier losses and rose modestly higher on Wednesday, 17 June, 2009. They rose as the dollar weakened in the wake of consumer price index report in the US thereby increasing the appeal of precious metals as a hedge against inflation.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Wednesday, gold for August delivery ended at $936, higher by $3.8 (0.4%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 2.3%. Year to date, gold prices are higher by 8%.
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 (10%) since then.
On Wednesday, Comex silver futures for July delivery rose 15 cents (1.1%) at $14.28 an ounce. Last week, silver ended lower by 3.3%. 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 29.8% this year. For 2008, silver had lost 24%.
The Labor Department reported on Wednesday, 17 June, 2009 that total CPI and core CPI increased 0.1%. Total CPI was a bit below expectations, but core CPI was in-line the consensus. U.S. consumer price index fell 1.3% in the past year, the sharpest decline since April 1950.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for August delivery closed higher by Rs 70 (0.48%) at Rs 14,510 per 10 grams. Prices rose to a high of Rs 14,550 per 10 grams and fell to a low of Rs 14,450 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 163 (0.72%) higher at Rs 22,732/Kg. Prices opened at Rs 22,605/kg and rose to a high of Rs 22,790/Kg during the day's trading.
Prices recover from their intra day lows as crude inventory drops more than expected
Crude oil prices gave up earlier losses and ultimately ended marginally higher on Wednesday, 17 June, 2009. Prices initially went down in synchronization with US stocks which opened in the red today. But as soon as the weekly inventory report showed more than expected draw in crude inventories for last week, prices pared their earlier losses.
On Wednesday, crude-oil futures for light sweet crude for July delivery closed at $71.03/barrel (higher by $0.63 or 0.75%). During intra day trading, crude fell to a low of $69. Last week, crude ended higher by 5.3%.
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 51% since then. Year to date, in 2009, crude prices are higher by 41.5%.
EIA reported today that crude supplies decreased by 3.9 million barrels last week to stand at 357.7 million barrels for the week ended 12 June, 2009. Market had expected a decline of 1.7 million barrels.
EIA also reported that gasoline inventories rose by 3.4 million barrels during the week and distillate inventories rose by 0.3 million barrels last week. Over the last four weeks, motor gasoline demand has averaged nearly 9.3 million barrels per day, up by 1.1% from the same period last year.
Also at the Nymex on Wednesday, July reformulated gasoline fell 3.80 cents to end at $2.033 a gallon, while July heating oil rose 3.80 cents to $1.863 a gallon.
July natural gas futures rose 12.40 cents to end at $4.253 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for July delivery closed at Rs 3,417/barrel, lower by Rs 8 (0.23%) against previous day's close. Natural gas for July delivery closed at Rs 212.1/mmbtu, higher by Rs 5.5/mmbtu (2.1%).
Ministry of Petroleum and Natural Gas has directed Reliance Industries to make additional allocation of natural gas from its KG Basin field to nine power companies. (BS)
TCS aims to prune its selling, general and marketing expenses to 19% of its total earnings. (BL)
NTPC, Reliance Industries case hearing on July 8th 2009. (BL)
Infosys has bagged a US$10mn deal from Microsoft. (ET)
HDFC and HDFC Bank are set to cut interest rates on term deposits by up to 25bps. (ET)
Hindalco is close to acquiring a coal mine in Australia for US$70-80mn. (ET)
M&M is betting its diesel pick up trucks to beat the Chinese competition in US markets. (BS)
ONGC - Mittal to spend US$150mn in Nigeria. (FE)
GAIL has informed Delhi High Court that it has cancelled tender for 3 sections of its Dahej-Vijaipur pipeline where Man Industries was the lowest bidder. (FE)
HPCL and LN Mittal owned Bathinda Refinary is likely to raise Rs20bn through IPO by year-end. (ET)
Tata Communications may sell a minority stake in Tata Communication Internet Services to rope in a strategic partner with proven experience in Wi-Max operations. (ET)
US based Medicis Pharmaceutical Corporation has filed a law suit against Ranbaxy for alleged infringement of its patent on a drug branded Solodyne. (BS)
Ashok Leyland has entered into pact with UBI and Bank to extend retail finance for sales of promotional vehicle. (FE)
NHPC Ltd to float its IPO by end of August 2009. (BL)
Government plans to divest 10% in Coal India Ltd. (BS)
Jet Airways will not offer any frill services in 110 routes out of its 290 routes. (BL)
Jet Airways and Kingfisher Airlines have raised the fuel surcharge by Rs400 on domestic flights. (BL)
Yes Bank plans to enter retail brokerage business. (FE)
Havells India targets Rs5bn revenue from Switch gear exports in the next three years. (FE)
Apollo Group has dropped plans to acquire Wockhardt Hospitals. (BL)
Fortis Healthcare is leading the race to acquire part of Wockhardt Hospitals. (BS)
Wockhardt Ltd has divested its German business Esparma to Mova GmbH. (BL)
Omaxe Infrastructure has bagged an order worth Rs1.3bn from UP Projects Corporation Ltd. (BS)
Dabur India has increased its stake in Fem Care Pharma to 92.15% post completion of the open offer. (BS)
Man Industries is shelving its plan to build a US$100mn plant in Arkansas. (BS)
Godrej Consumers plans to renew focus on hair colours to achieve higher growth. (BS)
AB Nuvo to raise Rs10bn to repay short-term debt. (FE)
Syndicate Bank has raised Rs2bn from sale of bonds. (FE)
Akruti City has delayed its US$500mn QIP issue by a year. (ET)
World Bank pre-conditions may delay a US$3.2bn loan for re-capitalization of more then a dozen government banks by 6-7 months. (ET)
NHAI has decided to issue letter of award to a highway developer only after it has acquired 80% of the land require for the project. (BL)
Bank credit increased Rs215bn for the fortnight ended June 5th 2009. (BS)
As per IMD, monsoon may revive around June 20th. (BS)
Advance tax collection touch Rs230bn in Q1 FY10 vis-à-vis Rs232bn in Q1 FY09.
Coal production increased 7.8% to 492.95mn tons in FY09. (FE)
Government may reduce food subsidy by Rs135bn. (ET)
Happiness is nothing more than good health and a bad memory.
The market fell like hell but the wise ones would have done well to pick some stocks. No point in discussing what went wrong on Wednesday. No earth shaking event happened. The only explanation could be profit booking by FIIs after a three-month rally. Of course sentiment associated with a large stock which gave way towards noon may have caught many on the wrong foot. Though we can’t really escape weak global cues for long, the Indian market could attempt a recovery after Wednesday’s sudden sell-off.
There have been some concerns over the lofty stock valuations without any commensurate improvement in fundamentals. However, today is a new day. The bulls are keen to get back to winning ways, especially considering India's relatively better positioning vis-à-vis other economies. A flat to positive opening is on the cards. Overall, the market will remain choppy with alternative bouts of rise and fall depending on how global cues play out. The recovery in economic growth and corporate profits will take time to catch up with market performance. At every fall, you could feel better if you pick up something.
Results Today: Dish TV, Kernex Micro, Opto Circuits, Prithvi Info, TV Today and Zee News.
FIIs were net sellers in the cash segment on Wednesday at Rs3.64bn while the local institutions pumped in Rs5.69bn. In the F&O segment, the foreign funds were net sellers at Rs13.26bn. On Tuesday, FIIs were net sellers at Rs7.12bn in the cash segment. Mutual Funds were net buyers of Rs86mn on the same day.
The US markets closed mixed on Wednesday, with blue chips and broader market slipping and technology stocks advancing marginally. Financial shares slid after Standard & Poor's cut its outlook on 22 banks.
The Dow Jones Industrial Average lost almost 7 points, or 0.1%, to 8,497.18. The S&P 500 index ended unchanged at 1,808.06, and the Nasdaq Composite index advanced 12 points, or 0.7%, to 910.71.
Stocks fluctuated through the session as investors considered the corporate news, President Barack Obama's plan for an overhaul of the American financial market regulation and a tame reading on consumer inflation.
Stocks were down in the first two days of the week on worries that the recession could drag on longer than has been anticipated. Bets that the economy is close to stabilising have fueled a three-month stock rally, lifting three major gauges into positive territory for the year. After bottoming at a more than 12-year low on March 9, the S&P 500 gained as much as 40% before pulling back. It currently stands 35% above the lows, through Wednesday's close.
In order for the rally to sustain beyond the short term, investors will need to see sustained improvement in economic news that will drive earnings growth and justify further stock gains.
Wednesday's gains were tempered by a retreat in financial shares after S&P downgraded the credit ratings of 22 banks, including Wells Fargo, Fifth Third and KeyCorp. S&P said operating conditions for the industry will get worse as financial markets become more volatile and regulatory supervision gets tighter.
President Obama unveiled details on how he plans to reorganize the way banks and other firms are regulated in the wake of the worst financial crisis since the Great Depression. The plan includes giving increased power to the Federal Reserve to monitor the financial system and also increased Treasurys responsibilities. Obama also proposed creating a consumer watchdog agency to track mortgage and credit card practices.
FedEx reported a wider fourth-quarter loss that missed sales expectations but beat on a per-share-basis. The delivery firm, often seen as a proxy for the economy, forecast earnings of 30 cents to 45 cents per share in the current quarter, versus Wall Street's forecasts for a profit of 68 cents per share.
FedEx's management gave a mixed outlook. The company's chief executive said there are signs that the worst of the recession is over, and the chief financial officer said the operating environment in the first two quarters in fiscal 2010 is going to be extremely difficult. FedEx shares dropped modestly.
Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.60% from 3.66% on Monday.
US light crude oil for July delivery rose 56 cents to settle at $71.03 a barrel on the New York Mercantile Exchange. COMEX gold for August delivery gained $3.80 to settle at $936 an ounce.
In currency trading, the dollar tumbled versus the euro and yen, falling for the second session in a row.
The Consumer Price Index (CPI), measure of consumer inflation, posted a decline of 1.3% over the past year, the biggest year-over-year decline since 1950. The report also showed that inflation has not picked up in the last month, despite rising oil and gas prices and trillions in government spending.
The CPI rose 0.1% in May, versus forecasts for an increase of 0.3%. CPI was flat in April. The so-called core CPI, which strips out volatile food and energy prices, rose 0.1% in May, meeting forecasts. Core CPI rose 0.3% in April.
Thursday brings a slew of economic news, including weekly jobless claims from the Labor Department, the Conference Board's May index of leading economic indicators and the Philadelphia Fed index, a regional read on manufacturing.
European shares fell sharply, with mineral extractors, oil producers and banks under pressure. The pan-European Dow Jones Stoxx 600 index ended 2% lower at 204.63. It was the fourth straight session of losses for the index. The UK's FTSE 100 index fell 1.2% to 4,278.46, while Germany's DAX 30 index lost 1.9% to 4,799.98 and the French CAC-40 index closed down 1.6% at 3,161.14.
After snapping a three day losing streak, the southward journey resumed on Dalal Street on Wednesday. Weak global cues coupled with all round selling in scrips across the sectors dragged the NSE Nifty below crucial support levels. Finally, the Sensex dropped 435 points or 2.9% to end at 14,522 after touching a high of 14,996 and a low of 14,447. The index had opened at 14,978 against the previous close of 14,958.
The NSE Nifty declined 162 points or 3.5% to shut shop at 4,356.
Among the BSE Sectoral indices BSE Realty index was the top loser declining 6%, followed by the BSE Metal index down 5.6%, BSE PSU index down 4.2%, BSE Oil & Gas index down 4.2% and BSE Capital Good index down 4%.
In the Sensex, among the major losers were, Tata Steel, Tata Motors, JP Associates, RCom, DLF, ONGC, Hindalco and Sterlite. Tata Power was the only gainer among the 30-components of Sensex.
Shares of Ranbaxy slipped by 4.2% to Rs287 after reports stated that the company is sued by US firm for patent infringement. The scrip touched an intra-day high of Rs294 and a low of Rs274and recorded volumes of over 0.39mn shares on BSE.
Shares of IL&FS Investsmart were locked at 5% upper circuit to Rs141.25 after the company announced that it received a proposal from HSBC Securities and Capital Markets India (HSCI) to voluntarily delist the equity shares of the company from the BSE and the NSE.
HSCI and HSBC Violet Investment (Mauritius) Ltd are the promoters of the company and collectively hold 65,548,443 equity shares representing 93.86% of the issued and paid up equity share capital of the Company.
Shares of Apollo Tyres slipped sharply from its intra-day high after reports stated that Michelin is looking to sell the remaining stake in Apollo Tyres. Michelin’s stake decreased to 7.3% from 14%
The stock plunged by 8.5% to end at Rs31.7 after hitting an intra-day high of Rs36.7 Total traded quantity was over 10.4mn shares on BSE.
On June 6, 2009, Michelin had offloaded 3.3% in Apollo Tyres for around Rs500mn through open market sales. According to reports, French tyre giant who had earlier sold small portions of its investments in the Indian firm has made a reasonable profit in this transaction given the original cost of purchase.
Shares of Max India gained 1% to Rs230 after reports stated that the company is considering selling a further 23% stake to New York Life Insurance if the government changes investment rules. The scrip touched an intra-day high of Rs249 and a low of Rs228 and recorded volumes of over 0.36mn shares on BSE.
Looking at the panic selling in the last hour of the trading session and crucial technical levels being breached, Indian markets would further slide atleast in the early trades. However, one cannot rule out a smart bounce back later in the day.
US stocks fell on Wednesday. Technology shares buoyed the Nasdaq after positive broker comments on Qualcomm, but financial shares` losses held back the Dow and the S&P 500.
The Dow Jones Industrial average fell 7.49 points, or 0.09%, to settle at 8,497.18.
The Standard & Poor`s 500 index lost 1.26 points, or 0.14%, to end at 910.71.
The NASDAQ composite index rose 11.88 points, or 0.66%, to close at 1,808.06.
Indian ADRs end on a negative note.
We recommend a sell in Jet Airways stock from a short-term trading perspective. It is apparent from the charts of Jet Airways that it was on an intermediate-term up-trend between early March and early June, from Rs 115 to Rs 363. Around Rs 360, the stock encountered resistance and reversed direction. Moreover, this trend reversal was triggered by the negative divergence displayed in the daily relative strength index (RSI). On June 8, the stock tumbled 12 per cent, experiencing selling. Since then, the stock has been on a short-term down-trend. It conclusively broke through the up-trendline by plunging 9 per cent on June 17. The daily RSI has entered the bearish zone and the weekly RSI is declining in the neutral region. The price rate of change indicator is falling in the negative territory indicating selling interest. Our short-term outlook on the counter is bearish. We expect its fall to prolong until it hits our price target of Rs 212. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 250.