Friday, June 26, 2009
NSE Bulk Deals to Watch - June 26 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
26-JUN-2009,DCB,Development Credit Bank L,SBI LIFE INSURANCE CO. LTD.,BUY,1000000,37.41,-
26-JUN-2009,GEMINI,Gemini Communication Limi,ANIL AMRUTLAL GANDHI,BUY,17348,22.97,-
26-JUN-2009,GEMINI,Gemini Communication Limi,AYODHYAPATI INVESTMENT PVT.LTD,BUY,165000,22.82,-
26-JUN-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,4403187,54.50,-
26-JUN-2009,INDUSFILA,Indus Fila Limited,TALMA CHEMICALS INDS. PVT. LTD.,BUY,580251,23.01,-
26-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,9748803,21.88,-
26-JUN-2009,KALINDEE,Kalindee Rail Nirman (Eng,BP FINTRADE PRIVATE LIMITED,BUY,89263,210.30,-
26-JUN-2009,NETWORK18,Network 18 Fincap Limited,RUANE,CUNNIFF&GOLDFARB INC SUB A/C.ACACIA CONSERVATION F,LP,BUY,648777,134.72,-
26-JUN-2009,NETWORK18,Network 18 Fincap Limited,RUANE,CUNNIFF&GOLDFARB INC SUB A/C.ACACIA INSTITUTION AL PAR,BUY,966195,134.72,-
26-JUN-2009,RUCHINFRA,Ruchi Infrastructure Ltd.,MAVI INVESTMENT FUND,BUY,3186426,34.79,-
26-JUN-2009,GEMINI,Gemini Communication Limi,ANIL AMRUTLAL GANDHI,SELL,506829,23.16,-
26-JUN-2009,GEMINI,Gemini Communication Limi,AYODHYAPATI INVESTMENT PVT.LTD,SELL,511000,23.22,-
26-JUN-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,4261347,54.38,-
26-JUN-2009,INDUSFILA,Indus Fila Limited,INDIA INFOLINE INVESTMENT SERVICES PVT LTD,SELL,340541,23.46,-
26-JUN-2009,INDUSFILA,Indus Fila Limited,T.J.STCXOK BROKING PVT.LTD.,SELL,580251,23.00,-
26-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,9436353,21.87,-
26-JUN-2009,KALINDEE,Kalindee Rail Nirman (Eng,BP FINTRADE PRIVATE LIMITED,SELL,89312,212.48,-
26-JUN-2009,LOTUSEYE,Lotus Eye Care Hospital L,NARENDRA A AMIN,SELL,129000,34.25,-
26-JUN-2009,NETWORK18,Network 18 Fincap Limited,SUNDARAM MUTUAL FUND A/C MIDCAP FUND,SELL,887331,135.00,-
26-JUN-2009,RUCHINFRA,Ruchi Infrastructure Ltd.,SHIVA FOUNDATION,SELL,1100000,34.80,-
Mahindra Holidays Grey Market Premium Drops
Mahindra Holidays
275 to 325
22 to 25
Rishabhdev Techno
29 to 33
5 to 7
Mahindra Holidays & Resorts India IPO receives solid response
Mahindra Holidays & Resorts India initial public offer was subscribed 9.74 times on the last day of subscription today as per the data on NSE website at 17:00 IST. The issue which opened for subscription on 23 June 2009 got bids for 9.02 crore shares as against 92.65 lakh shares on offer.
The company's 92.65 lakh public issue represents 11% of the post-issue paid up capital. The IPO price band is Rs 275-Rs 325.
Mahindra Holidays & Resorts India runs the shared vacation home business, Club Mahindra Holidays. India's largest tractor maker by sales Mahindra & Mahindra holds 93.64% in the company.
The IPO proceeds will be utilised in expanding current properties and adding five new properties at Kumbalgarh in Rajasthan, Kadambakkam in Tamil Nadu, Binsar in Uttaranchal, Theog in Himachal Pradesh, and Tungi in Maharashtra.
Mahindra Holidays & Resorts India, a unit of Mahindra & Mahindra, had raised nearly Rs 120 crore by selling 2% stake to State Bank of India and 1% stake to Jacob Ballas India Fund in February 2008. The transaction had taken place at Rs 479 a share.
The company's net profit fell 5% to Rs 79.80 crore on 11% rise in sales to Rs 393.19 crore in the year ended March 2009 over the year ended March 2008.
FIIs step up selling
Outflow of Rs 1038.10 crore on 25 June 2009
Foreign institutional investors (FIIs) sold shares worth a net Rs 1038.10 crore on Thursday, 25 June 2009, much higher than Rs 601.30 crore on Wednesday, 24 June 2009.
FII outflow of Rs 1038.10 crore on 25 June 2009 was a result of gross purchases Rs 4,111.50 crore and gross sales Rs 5,149.60 crore. The BSE Sensex lost 77.11 points or 0.53% to 14,345.62 on that day.
FII inflow in June 2009 totaled Rs 1,925.90 crore (till 25 June 2009). FII inflow in calendar year 2009 totaled Rs 23,245.30 crore (till 25 June 2009).
There are a total of 1668 foreign funds registered with the Securities & Exchange Board of India (Sebi).
Rally in banking, capital goods shares helps India outperform global markets
Key benchmark indices surged, recovering from a more than 7% slide from multi-month highs in the past eleven trading sessions, as speculators took fresh positions betting on economic reforms in the Union Budget 2009-10. Positive global cues also lifted sentiment. The BSE 30-share Sensex gained 419.02 points or 2.92% to 14,764.64, led by rally in index heavyweights Reliance Industries and ICICI Bank. Rally in banking and capital goods shares helped Indian indices outperform global peers.
A key trigger for the rally was the reduction in lot sizes of derivative contracts by the National Stock Exchange, which became effective from today, 26 June 2009. Lower lot size has made the contracts affordable to small traders and retail investors who took fresh positions today, 26 June 2009, ahead of the budget.
The National Stock Exchange
(NSE) had in late 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. Thus, the lot size of Maruti Suzuki has been reduced to 200 from 800 and that of Steel Authority of India (Sail) has been cut to 1350 from 5400. The lot size of Axis Bank has been halved to 450 from 900 and for Reliance Industries to 150 from 300. State Bank of India's lot size, too, has been halved to 132 from 264.
Today's rally on the bourses was amid a roller-coaster intraday ride. After an initial surge triggered by firm global stocks, the market soon pared gains. The market firmed up again in morning trade. It came sharply off the higher level in early afternoon trade. The market firmed up once again later. The market extended gains in afternoon trade. The market pared gains in mid-afternoon trade. before bouncing back to fresh intraday high. The rally gathered further momentum in late trade.
The 50-unit S&P CNX Nifty advanced 133.65 points or 3.15% to 4375.50. With effect from today, 26 June 2009. Nifty has become a free-float market capitalisation based index from its earlier full-market capitalisation method. As a result, weights of public sector undertakings - ONGC, NTPC, Steel Authority of India (Sail), Power Grid Corporation and National Aluminum Company, in Nifty has come down by at least 50%.
Other stocks that have seen a drop in weightage due to the change in methodology include Bharti Airtel, Reliance Communications, Tata Consultancy Services, DLF and Wipro. On the other hand, Infosys Technologies, ICICI Bank, Larsen and Toubro, HDFC and HDFC Bank stand to gain from this change as their weightages almost double from earlier.
On the macro front, there are concerns that poor rains could cap a recovery in the economy. A weak monsoon could hit rural demand for consumer goods. Monsoon rains, which run from June to September, have weakened and are expected to be below normal, Prithviraj Chavan, minister of science and technology, said after trading hours on Wednesday, 24 June 2009 in a briefing in New Delhi. The minister said the 2009 monsoon rainfall would be 93% of the long-term average, lower than an earlier forecast of 96%. However, the government ruled out the possibility of a drought
Foreign funds have been on a selling drive recently after aggressively buying during the past three months or so. Foreign institutional investors (FIIs) sold shares worth Rs 1038.10 crore on Thursday, 25 June 2009. FIIs sold shares worth Rs 4188.40 in nine trading days till 25 June 2009. However they are still net equity buyers to the tune of Rs 2759.90 in June 2009 (till 25 June 2009) and Rs 23233.40 in calendar 2009.
The next major trigger for the market is the Union Budget 2009-2010. 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 the year ending March 2010 (FY 2010) and 7.8% in the year ending March 2011 (FY 2011).
Finance Minister Pranab Mukherjee would present the 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.
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.
European markets were trading firm today, 26 June 2009 as rise in crude and metals prices boosted commodity stocks, while financial stocks recovered after recent losses. Key benchmark indices in UK, Germany and France were up by between 0.12% and 0.28%.
Asian markets were trading higher today, 26 June 2009 as commodity prices jumped amid optimism the US recession may ease after the economy shrank less than expected in the first quarter. Key benchmark indices in Hong Kong, China, Taiwan, South Korea, Singapore and Japan were up by between 0.11% and 1.78%. While Hong Kong's Hang Seng index extended gains, China's Shanghai Composite index reversed early losses to clawed back in green.
Crude oil prices jumped past $70 a barrel on Thursday, 25 June 2009 after the US government said that the economy may be faring better than previously thought. Light sweet crude for July delivery gained $1.56 to settle at $70.20 a barrel on the New York Mercantile Exchange.
But trading in the US index futures indicated the Dow could fall 18 points today, 26 June 2009.
US stocks surged on Thursday, 25 June 2009 as investors were relieved after government data showed gross domestic product shrank last quarter by 5.5%, lesser than economists' expectations of 5.7%. The Dow Jones industrial average jumped 172.54 points, or 2.08%, to 8,472.40, snapping a four-day losing streak. The Standard & Poor's 500 Index gained 19.32 points, or 2.14%, to 920.26. The Nasdaq Composite Index advanced 37.20 points, or 2.08%, to 1,829.54
In other economic data, initial jobless claims jumped by 15,000 to 627,000 last week, higher than the expected 6,00,000. Continuing claims crept up to 6.74 million.
The BSE 30-share Sensex advanced 419.02 points or 2.92% to 14,764.64. The Sensex opened 27.95 points higher at 14,373.57, also its day's low. At the day's high of 14,781.94, the Sensex rose 436.32 points in late trade.
The 50-unit S&P CNX Nifty was up 133.65 points or 3.15% to 4375.50. Nifty July 2009 futures were at 4384, a premium of 8.50 points as compared to spot closing. Turnover in NSE's futures & options segment declined to Rs 48071.62 core today, 26 June 2009 as compared with Rs 95928.31 crore on Thursday, 25 June 2009.
The BSE Sensex had lost 1121.19 points or 7.24% in 11 trading sessions to 14345.62 on Thursday, 25 June 2009, from a multi-month closing high of 15,466.81 on 10 June 2009. The barometer index is up 5117.33 points or 53.04% in calendar year 2009 as on 26 June 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 6604.24 points or 80.93% as on 26 June 2009
Coming back to today's trade, the BSE clocked a turnover of Rs 5512 crore as compared to Rs 5655 crore on Thursday, 25 June 2009.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1682 shares advanced as compared with 974 that declined. 100 shares remained unchanged.
The BSE Mid-Cap index rose 2.4% to 5,170.90 and the BSE Small-Cap index advanced 1.89% to 5,800.75. But both these indices underperformed the Sensex
Sectoral indices on BSE displayed mixed trend. The BSE Capital Goods index (up 2.94%), the BSE IT index (up 3.64%), BSE Bankex (up 4.31%), and the BSE Realty index (up 2.99%), the BSE Consumer Durables index (up 3.17%), the BSE Oil & Gas index (up 2.94%), the BSE Metal index (up 2.69%), outperformed the Sensex
The BSE TECk index (up 2.84%), BSE Power index (up 2.37%), the BSE Healthcare index (down 1.49%), the BSE Auto index (up 1.12%), the BSE FMCG index (up 1.72%), the BSE PSU index (up 1.84%), underperformed the Sensex.
Among the 30-member Sensex pack, 26 advanced while only 4 of them slipped.
Banking and financial shares vaulted mirroring firm American depository receipt (ADRs) and hopes of financial sector reforms in the Union Budget 2009-10. India's largest private sector bank by net profit ICICI Bank surged 9.06% to Rs 762 after its ADR jumped 4.75% on Thursday, 25 June 2009. It was the top gainer from the Sensex pack. The counter clocked volume of 23.86 lakh shares
India's second largest private sector bank by net profit HDFC Bank rose 2.09% after its ADR advanced 3.12% on Thursday, 25 June 2009.
India's biggest bank in terms of branch network State Bank of India (SBI) rose 2.51%. The bank on Wednesday, 24 June 2009 said it will cut its benchmark prime lending rate by 50 basis points to 11.75% per annum from 29 June 2009.
India's top housing mortgage firm by total income Housing Development Finance Corporation gained 2.62%.
Karnataka Bank (up 4.08%), Kotak Mahindra Bank (up 4.81%), Axis Bank (up 4.98%), Canara Bank (up 2.75%), and Punjab National Bank (up 3.16%), edged higher
Indiabulls Financial Services rose 5% after 15 lakh shares changed hands in two block deals on BSE and NSE combined. A block deal of seven lakh shares was struck on BSE at Rs 184 per share and another deal of eight lakh shares was executed on NSE at the same price. The two block deals combined constituted 0.59% of the company's equity.
As per street expectations, banks may get tax relief on interest earned on infrastructure lending in the Union Budget 2009-2010. A tax relief on infrastructure lending will enable banks to lend more to the sector. This relief was withdrawn by the government in 2007. Bankers have also sought rebate for long-term deposits, which are necessary for infrastructure funding.
Metal shares gained after LMEX, a gauge of six metals traded on the London Metal Exchange, climbed 1.52% on Thursday, 25 June 2009. Sterlite Industries (up 5.84%), JSW Steel (up 5.33%), Sesa Goa (up 2.38%), Hindalco Industries (up 2.01%), Hindustan Zinc (up 2.73%), and Nalco (up 0.72%), gained.
However, India's largest private sector steel maker by sales Tata Steel lost 2.80% to Rs 386.80, off sharply from the day's high of Rs 403, after consolidated net profit declined 59% to Rs 4950.90 crore on a 11.80% increase in sales to Rs 147594.93 crore in the year ended March 2009 over the year ended March 2008. The results were announced after market hours on Thursday, 25 June 2009. Tata Steel's standalone net profit rose 10.98% to Rs 5201.74 crore on a 23.32% rise in sales to Rs 24024.45 crore in the year ended March 2009 over the year ended March 2008.
India's largest private sector firm by market capitalisation Reliance Industries (RIL) jumped 3.39% to Rs 2026 on reports the company is evaluating options for future course of action after the Bombay high court on 15 June 2009 asked RIL to supply gas to Anil Ambani Group firm Reliance Natural Resources (RNRL) at prices lower than the government-approved. RNRL gained 3.40%.
The Bombay High Court has directed RIL and 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 RNRL. 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. According to analysts the lower gas sale price will result in lower-than-expected earnings from gas sales for RIL.
India's largest oil exploration firm by sales Oil & Natural Gas Corporation (ONGC) rose 1.47% to Rs 1040.25 after Thursday's nearly 3% slide triggered by weak Q4 results which the company had announced after market hours on Wednesday, 24 June 2009. ONGC's net profit fell 16% to Rs 2206.76 crore on a 12.30% fall in net sales to Rs 13703.80 crore in Q4 March 2009 over Q4 March 2008.
Cairn India rose 4.80% on rise in crude oil prices. The rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms such as Cairn India.
Shares of three state-run oil marketing companies rose on reports the Union Budget 2009-2010 may include a road map for a partial decontrol of auto fuel prices in the country. Hindustan Petroleum Corporation (up 2.52%), Indian Oil Corporation (up 0.65%) and Bharat Petroleum Corporation (up 1.11%), rose.
Infrastructure stocks rose on hopes the government may announce higher spending for the infrastructure projects in the Union Budget 2009-10. Bharat Heavy Electricals (up 2.99%), Larsen & Toubro (up 5.84%), Lanco Infratech (up 6.71%), Punj Lloyd (up 4.45%), IVRCL Infrastructures & Projects (up 8.42%), GMR Infrastructure (up 1.74%), and Jaiprakash Assciates (up 1.22%), gained.
J Kumar Infraprojects was locked in the 5% upper limit after the company bagged two orders aggregating Rs 8.56 crore. The company announced the fresh orders during trading hours today, 26 June 2009.
Rate sensitive realty stocks rose on expectations that stability at the Centre will attract more money from foreign investors into the sector which in turn will boost growth. DLF (up 2.27%), Indiabulls Real Estate (up 5.85%), Unitech (up 0.18%), Omaxe (up 5.85%), Akruti City (up 5%), HDIL (up 13.33%) rose.
India's largest private sector power generation company by net profit Tata Power Company rose 0.17% after the company entered into a memorandum of understanding with group firm Tata Steel to set up a 525 megawatt power plant in Netherlands. The company made this announcement after trading hours on Thursday, 25 June 2009.
India's largest private sector power generation company by net profit Reliance Infrastructure rose 1.67% on reports despite reports Tata Power Company, which supplies 500 megawatts of power to Reliance Infrastructure's distribution area in Mumbai, has decided to discontinue the supply from April 1, 2010.
India's largest commercial vehicle maker by sales Tata Motors rose 0.65%. The company reported a net loss of Rs 2505.25 crore in the year ended March 2009 as compared with net profit of Rs 2167.70 crore in the year ended March 2008. Net sales jumped 98.73% to Rs 70370.40 crore in the year ended March 2009 over the year ended March 2008. However the figures are not comparable as the year-ago numbers did not include that of Jaguar and Land Rover, as well as some other assets the company bought and sold during the year. The results were announced after market hours today, 26 June 2009.
Other auto stocks saw mixed trend. India's largest tractor maker by sales Mahindra & Mahindra slipped 0.50% while India's top small car maker by sales Maruti Suzuki India gained 3.22%
Fears that scanty rains may hurt rural demand had pulled auto stocks lower on Thursday, 25 June 2009. Auto companies derive a substantial revenue from sales in the rural market.
Outsourcing focussed IT stocks mirrored gains in ADRs. India's second largest software firm by sales Infosys Technologies rose 3.45% as its ADR rose 1.49% on Thursday, 25 June 2009.
India's largest software services exporter by sales TCS rose 3.75%. India's third largest software services exporter by sales Wipro gained 2.51% following a 3.15% rise in its ADR on Thursday, 25 June 2009.
India's top pharma firm by market capitalisation Sun Pharma tumbled 12.36% to Rs 1138 after its subsidiary Carco Pharma tumbled 42.82% on Thursday, 25 June 2009 in the US markets. The US Food and Drug Administration said it seized more than 30 generic drugs made by Caraco Pharmaceutical Laboratories, in which Sun Pharma holds 70.21% stake, after the agency found manufacturing defects at the company's plants, including oversized tablets. Nevertheless, the stock rebounded sharply from day's low of Rs 1070 in opening trade
Other pharma stocks also witnessed a rub-off effect of Sun Pharma's slide. Ranbaxy Laboratories (down 4.33%), Lupin (down 6.14%), Wockhardt (down 3.93%), Aurobindo Pharma (down 0.50%), and Nicholas Piramal (down 0.60%), slipped.
FMCG and fertiliser companies, though up, underperformed the Sensex on forecast of below normal monsoon rains for the first time in four years.
Hindustan Unilever (up 2.60%), ITC (up 1.52%), Britannia Industries (up 0.19%), Bata India (up 2.14%), and United Spirits (up 0.89%), rose from the FMCG sector. FMCG firms derive a substantial revenue from rural markets.
Among fertiliser shares, Chambal Fertilisers & Chemicals (up 2.68%), RCF (up 1.15%), Nagarjuna Fertilisers (up 0.85%), Zuari industries (up 1.81%) and Deepak Fertilisers (up 1.26%) rose.
The fortunes of the fertiliser sector are linked to the monsoon. A normal monsoon boosts fertiliser demand helping fertiliser companies improve their profitability. The Indian Meteorological Department earlier this week said monsoon rains were 68% below normal for the week ended 24 June 2009.
Sugar shares gained on firm global sugar prices. Bajaj Hindusthan (up 1.83%), Triveni Engineering (up 1.86%), Ugar Sugar (up 3.81%), Sakthi Sugar (up 5%), and Balrampur Chini Mills (up 4.49%), rose.
Shares of select firms which depend on orders from railways gained on speculative buying on hopes of favorable announcement in the Railway Budget on 3 July 2009. Kalindee Rail Nirman Engineers (up 0.76%), Container Corporation of India (Concor) (up 1.03%), BEML (up 0.35%), Kernex Microsystems (up 5%), Titagarh Wagons (up 2.64%), Stone India (up 2.56%), Hind Rectifiers (up 0.41%), rose.
Tata Steel topped the turnover chart on BSE clocking a turnover of Rs 248.96 crore followed by Reliance Industries (Rs 211.64 crore), Suzlon Energy (Rs 205.48 crore), HDIL (Rs 192.90 crore) and ICICI Bank (Rs 175.90 crore).
IFCI led the volume chart on BSE notching volume of 2.50 crore shares followed by Ispat Industries (1.83 crore shares), Suzlon Energy (1.68 crore shares), Unitech (1.58 crore shares) and Reliance Natural Resources (1.45 crore shares).
HBL Power Systems surged 5% after net profit rose 35.6% to Rs 90.96 crore in the year ended March 2009 over the year ended March 2008. HBL Power Systems' net sales rose 27.9% to Rs 1243.90 crore in the year ended March 2009 over the year ended March 2008. The company announced the results after market hours on Thursday, 25 June 2009.
Bartronics India galloped 5.76% on buzz the company may likely win an order for a government initiated project to provide unique identification numbers to citizens of the country.
Apar Industries slumped 8.50% after the company posted consolidated a net loss of Rs 5.32 crore in the year ended March 2009 as compared to net profit of Rs 88.86 crore in the year ended March 2008. The company announced the results before trading hours today, 26 June 2009.
Pre Session Commentary - June 26 2009
Today domestic markets are likely to open positive as the US first quarter GDP data showed a contraction of 5.5% as against 5.7% decline that was previously reported. The US markets closed with phenomenal gains thus inspiring other Asian markets that have also opened in green. There could be a range bound trade in the domestic arena despite positive influence from other markets.
On Thursday, domestic markets closed in red due to late selling pressure. The markets could not hold on the early gains due to weak opening of the European markets. The morning rally had occurred on the back of phenomenal northward trend of the Asian markets however the domestic traders ignored the movement to Asian markets and rather followed the southward trend of the European markets. Sectors like Auto, Oil and PSU were the laggards of the day with losses of 2.18%, 2.10% and 1.71% respectively. On the other hand, Realty and Bankex managed to close in green with gains of 0.53% and 0.38% respectively. We expect the markets to be trading range bound.
The BSE Sensex closed with a loss of 77.11 points at 14,345.62 and NSE Nifty ended with a loss of 51.10 points at 4,241.85. BSE Mid Caps and Small Caps closed with losses of 9.94 points and 26.01 points at 5,149.90 and 5,693.02 respectively. The BSE Sensex touched intraday high of 14,578.46 and intraday low of 14,261.14.
On Thursday, the US Markets closed with phenomenal gains on the back of first quarter GDP data that showed a contraction of 5.5% as against 5.7% decline that was previously reported. The traders came back with a lot of exuberance across the broader level. The session’s broad based buying also helped CRB commodity index to record a gain of 1.4%. On the darker side the jobless claims for the week ending June 13 that totaled 627,000 was up than expected and also more than previous week. Bond markets also witnessed phenomenal buying this session after a $27 billion auction of 7-year Notes saw better-than-expected results. The US light crude oil for August Futures delivery inclined by 2.2% at $70.15 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed up by 172.54 points at 8,472.40 the NASDAQ Composite (RIXF) index inclined by 37.20 points at 1,829.54 and the S&P 500 (SPX) gained by 19.32 points at 920.26.
Today major stock markets in Asia are trading positive. Hang Seng is up by 186.28 points at 18,461.31. Shanghai Composite is low by 7.287 points at 2,917.759. Japan''s Nikkei is trading up by 50.48 points at 9,846.56. Strait Times is up by 22.06 points at 2,324.52. KLSE Composite is up by 16.26 points at 1,074.11.
Indian ADRs ended mostly higher on Thursday. In the banking space, ICICI Bank was up 5.16% and HDFC Bank was up 3.12%. In the IT space, Patni Computers was up 4.51%, Wipro was up 3.15%, Infosys was up 1.49% while Satyam Computers was down 1.18%. In the telecom space, MTNL was up 3.04% while Tata Communication was down 1.12%. In other sectors, Dr Reddy''s Labs was up 3.81%, Sterlite Industries was up 3.26% and Tata Motors was up 1.25%.
The FIIs on Thursday stood as net sellers in equity and debt. The Gross equity purchased stood at Rs 1,602.90 Crore and gross debt purchased stood at Rs 71.20 Crore, while the gross equity sold stood at Rs 2,204.10 Crore and gross debt sold stood at Rs 197.90 Crore. Therefore, the net investment of equity and debt reported were Rs (601.30) Crore and Rs (126.70) Crore respectively.
On Thursday, the partially convertible rupee closed 5 paise lower at 48.60/61 per dollar as compared to its previous close at 48.55/56. The Indian rupee ended low due to bearish local markets.
On BSE, total number of shares traded were 42.76 Crore and total turnover stood at Rs 5,654.81 Crore. On NSE, total number of shares traded was 123.97 Crore and total turnover was Rs 23,570.02 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 93887743, followed by Suzlon Energy with 66885125, NTPC with 20495167, SAIL with 18786896 and DLF with 14364546.
On NSE Future and Options, total number of contracts traded in index futures was 1028417 with a total turnover of Rs 21,628.20 Crore. Along with this total number of contracts traded in stock futures were 652991 with a total turnover of Rs 36,098.15 Crore. Total numbers of contracts for index options were 1630359 with a total turnover of Rs 35,527.61 Crore and total numbers of contracts for stock options were 47108 and notional turnover was Rs 2,674.34 Crore.
Today, Nifty would have a support at 4,286 and resistance at 4,378 and BSE Sensex has support at 14,428 and resistance at 14,624.
Market seen opening firm
Key benchmark indices are seen opening on a buoyant note tracking positive global cues. The SGX Nifty futures for July 2009 expiry advanced 14.50 points in Singapore. However it may give up gains later in the day as forecast of below normal monsoon rains for the first time in four years and recent selling from foreign funds may dampen sentiment.
Rollovers for the derivative contracts for June 2009 series, which expired on Thursday, 25 June 2009, were lower as compared to previous series. As per reports, rollover of Nifty positions from June 2009 series to July 2009 series stood at 55% as compared to 63% in the previous series. Also stock futures rollover slipped to 75% from 77% in the last series
Most Asian markets were trading higher today, 26 June 2009. Key benchmark indices in Hong Kong, Taiwan, South Korea, Singapore and Japan were up by between 0.03% and 0.91%. However China's Shanghai Composite fell 0.25%.
US markets opened lower after weekly jobless claims came in higher than expected on Thursday, 25 June 2009. But strong demand for another treasury auction boosted confidence and markets rebounded. Good set of corporate earnings too helped the markets to bounce back.
The Dow Jones industrial average jumped 172.54 points, or 2.08%, to 8,472.40, snapping a four-day losing streak. The Standard & Poor's 500 Index gained 19.32 points, or 2.14%, to 920.26. The Nasdaq Composite Index advanced 37.20 points, or 2.08%, to 1,829.54
In economic data initial jobless claims jumped by 15,000 to 627,000 last week, higher than the expected 6,00,000 continuing claims crept up to 6.74 million meanwhile, the economy contracted 5.5% in the first-quarter, according to the commerce department.
Back home on the flip side, foreign funds have been in a selling mode recently after aggressively buying during the past three months or so. As per the provisional figures on the NSE, foreign institutional investors (FIIs) sold shares worth Rs 1482.82 crore on Thursday, 25 June 2009 while domestic institutional investors purchased shares worth Rs 1118.05 crore.
Monsoon rains, which runs from June to September, have weakened and are expected to be below normal, Prithviraj Chavan, minister of science and technology, said on Wednesday, 24 June 2009 in a briefing in New Delhi. The India Meteorological Department on 17 April 2009 predicted rains in the June- September period to be near normal. The minister said the 2009 monsoon rainfall would be 93% of the long-term average, lower than an earlier forecast of 96%.
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.
The World Bank on 22 June 2009 predicted that the global economy will shrink 2.9% this year, a deeper fall than the 1.7% contraction it predicted in March 2009.
The good news for India is that the World Bank has raised India's growth forecast for 2009 to 5.1% from earlier projection of 4%. It has projected an 8% growth for India in 2010 which will make it the fastest growing economy in the world in 2010, overtaking China's expected 7.7% growth relative to the robust performance prior to the current crisis.
In its semi-annual Economic Outlook released on 24 June 2009, the Organisation for Economic Co-operation and Development (OECD) called on the Indian government to restore fiscal discipline, speed up structural reform and increase sales of public-sector assets.
Brazil, India, China and Russia – collectively, the BRICs – held their first summit in Paris this month, underlining the quartet's growing political as well as economic clout.
The OECD had been forecasting GDP growth for India of 4.3% in 2009 and 5.8% in 2010. OECD said that with the gradual recovery of the global economy and easier financial conditions, growth is projected to gradually regain momentum.
The next major trigger for the market is the Union Budget 2009-2010. 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 the year ending March 2010 (FY 2010) and 7.8% in the year ending March 2011 (FY 2011).
Finance Minister Pranab Mukherjee would present the 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.
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.
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.
Positive global cues may push indices higher
The sharp rally in the US markets and a rise in several Asian indices in the ongoing trading session may help the domestic indices pull-back from lower levels. However, lack of clarity in the market and volatility may drag down the market. Among the indices, the Nifty could face a resistance at 4300-4350 levels and has a likely supports at 4200-4150 levels. The Sensex has a likely support at 14200 and may face resistance at 14500.
US indices bounced back sharply and finished higher, as investors scooped up a variety of shares hit in the recent selloff -- including commodity, consumer, homebuilding and tech issues. While the Dow Jones moved up by 173 points at 8,472, the Nasdaq managed to add 37 points at 1,830.
Barring few, most of the Indian floats had a field day on the US bourses. ICICI Bank flared up by 5.16% and Patni Computers jumped 4.51% , while Dr Reddy's, Wipro, HDFC Bank, MTNL, Rediff, Infosys and Tata Motors gained around 1-3% each. Among the laggards Satyam slipped 1.18% and VSNL was down by 1%.
Crude oil prices raised a little, with the Nymex light crude oil for August delivery gained by $1.56 to close at $70.23 a barrel. In the commodity space, the Comex gold for August delivery gained by $5.10 to settle at $939.50 an ounce.
Precious metals add further glaze
Gold and silver rise as dollar sheds gains
Precious metal prices rose at USA on Thursday, 25 June, 2009. Prices rose today as the dollar shed much of its earlier gains. Dollar gave up gains today after the initial jobless claims data in US checked in worse than expected.
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, gold for August delivery ended at $939.5, higher by $5.1 (0.5%) an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 0.5%. 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 Thursday, Comex silver futures for July delivery rose 9.5 cents (0.7%) at $14.005 an ounce. Last week, silver ended lower by 4.5%. 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 28.6% this year. For 2008, silver had lost 24%.
The Labor Department reported on Thursday, 25 June, 2009 that first-time filings for state unemployment benefits rose unexpectedly in the week ended 20 June, 2009. For the week ended 20 June, initial claims rose 15,000 to 627,000. This is the highest level since the week ended 16 May, 2009. The latest four-week moving average for initial claims fell 500 to stand at 617,250.
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 66 (0.45%) at Rs 14,679 per 10 grams. Prices rose to a high of Rs 14,705 per 10 grams and fell to a low of Rs 14,617 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 121 (0.54%) higher at Rs 22,491/Kg. Prices opened at Rs 22,372/kg and rose to a high of Rs 22,575/Kg during the day's trading.
Daily News Roundup - June 26 2009
Reliance Industries said that it will not be able to divert gas meant for NTPC’s Kawas and Gandhar power plants to any other unit due to constraints in pipeline transporting the fuel. (BS)
ONGC Videsh, IOC and Oil India have proposed an investment of US$5bn to bring to production a massive gas field they discovered in offshore Iran in the next 3-4 years. (BS)
Reliance Gas, part of Reliance Industries, IOC and Adani Energy are among 8 companies that have bid for building city gas distribution networks in 7 cities. (BS)
NTPC will soon float a tender to procure equipment for 11.6GW supercritical thermal power units as a part of the 100 day program. (BS)
Bharti-MTN will take atleast 4 months for regulator and other approvals. (BS)
Spanish firm Gamesa and Danish company Vestas in race to buy Suzlon stake in Hansen. (ET)
Tata Power plans to discontinue the supply of power to Reliance Infrastructure’s Mumbai distribution area from April 1, 2010. (BS)
Tata Power to set up plant in Netherlands. (BL)
State government asks Maharashtra Electricity Regulatory Commission to look into Reliance Infra’s power tariff hike. (ET)
GAIL plans to invest upto Rs75bn for laying Dhabol-Bengaluru and Kochi-Kanjirkkod-Bengaluru-Mangalore pipelines. (BS)
Reliance Infrastructure plans to raise funds by issuing securities to QIBs (BS)
ABG Shipyard to revise its offer price for GT Offshore next week. (BL)
Moody’s warns that Indian banking system’s asset quality could come under strain. (BL)
Corus Group, subsidiary of Tata Steel, announced to cut 2,045 fresh jobs mostly in 3 of its plants in UK. (BS)
Glenmark Pharmaceuticals’ subsidiary has received US regulatory approval for marketing and distribution of Alclometasone Dipropionate Cream. (FE)
Government ropes in ex-Infosys chief Nandan Nilekani to steer National ID card project. (ET)
Infosys, TCS and Wipro may win UID orders. (ET)
Dabur completed Fem Care Pharma acquisition. (BS)
Sobha Developers in talks with PE firms to raise funds for the development. (ET)
Areva T&D bagged a Rs12bn order from JSPL for a power project. (BS)
IOC will shut its 160,000 barrel a day Mathura refinery for about a month from today for planned maintenance. (BS)
Indiabull Financial Services plans to raise US$200mn by issuing equity shares, fully convertible debentures or placement with QIB. (BS)
Pfizer has increased its tender offer price to Rs830/share, 23% increase over the original offer. (BS)
Novartis AG has hiked its stake to 76.42% in its Indian subsidiary Novartis India. (BS)
Azim Premji-owned Zash Investments sends legal notice to Subhiksha’s current and former directors over their alleged failure to perform their duties. (ET)
BHEL to build power plant for IOC. (BL)
The revenue department has raised objections to an application by United Breweries (Holdings) Ltd seeking approval to raise Rs7.1bn by issuing fully convertible equity warrants to FirStart Inc, a company owned by Mr. Vijay Mallya’s mother. (BS)
Tata Communications bagged a voice services outsourcing contract from British Telecom for a period of 5 years. (BS)
IDBI Bank cuts lending rate by 25 bps. (BL)
Kriloskar Brothers is looking to acquire companies in the US, UK and East Asia in the fluid handling solutions space. (BS)
Inflation remains in negative territory for the second consecutive week at -1.14% for the week ended June 13. (BS)
RBI may tighten prudential norms for banks to provide a cushion for financial soundness. (BS)
Government has announced anti dumping duty on imports of phosphoric acid and Diethyl Thio Phosphoryl Chloride. (BS)
Cabinet Committee on Economic Affairs approved a 32.74% increase in the statutory minimum price of sugarcane for 2009-10 to Rs107.76/quintal. (BS)
Power ministry’s plans to add 78GW during the XIth plan hit a major roadblock as states are pressing for atleast 5% of profit earned by project developers. (FE)
Government may give oil companies some space to fix retail prices of at least autofuel, petrol and diesel in a phased decontrol program. (ET)
Government borrowing in the first half of current fiscal is expected to be higher than the projected figure in the interim budget, says CMIE. (ET)
We are the World!
Heal the World, make it a better place, for you and for me and the entire human race - Michael Jackson.
The bulls will hope to Just Beat It (read bears) at start with global cues being brighter. Wall Street has led a global rebound after data showed that the US economy shrank less than expected in the first quarter. They have been asking the bears for sometime - Why You Wanna Trip On Me? A caveat though: there is no great Thriller in store as many things, to put it bluntly remain Bad.
Consider this: FIIs have been net sellers now for eight consecutive trading sessions. Crude oil is above $70. Toyota's new boss warns of two more tough years. Core consumer prices in Japan chalk up another drop, fueling further fears of deflation. South Korea’s surplus declines in May.
Back home though, there is some relief from the heat. After a delayed start, the crucial southwest monsoon’s finally here. Hopefully, it will be well spread out and spaced out. We expect the global rally to rub off on local sentiment today. But, early gains may not sustain as uncertainty still prevails over a spate of key events like the budget and earnings. Don’t take undue risks at this juncture.
At the same time, Don't Walk Away from the market completely, as there is nothing to panic about. The medium to long term outlook for India is encouraging. If you are too uncertain, remember, You are not Alone! May be you should stay on the sidelines for a while before taking a call.
FIIs were net sellers in the cash segment on Thursday at Rs14.83bn while the local institutions pumped in Rs11.18bn. In the F&O segment, the foreign funds were net sellers at Rs14.17bn. On Wednesday, FIIs were net sellers at Rs6.01bn in the cash segment. Mutual Funds were net buyers of Rs3.89bn on the same day.
Results Today: BEML, Deccan Chronicle, Glenmark Pharma, Gujarat State Petronet, Jai Corp., Max India, SpiceJet, Tata Motors, TVS Motor and Zee Entertainment.
US stocks rallied on Thursday, led by commodity related shares after crude oil spiked above $70 per barrel. Bond yields fell after a strong response to the latest auction by the Treasury Department. Investors snapped up a variety of shares hit in the recent selloff - including commodity, consumer, homebuilding and tech issues. Stocks also gained as better-than-estimated earnings at Bed Bath & Beyond lifted retailers and Lennar Corp. pushed homebuilders higher.
The Dow Jones Industrial Average gained 172 points, or 2.1%, to 8,472.40. The Dow rose as much as 190 points earlier in the afternoon. The S&P 500 index was up 19 points, or 2.1% at 920.26, and the Nasdaq Composite index added 37 points, or 2.1%, to 1,829.54.
Gains were broad based with 29 out of 30 Dow issues rising.
US stocks have dipped over the last week as the more than three-month old rally lost steam. But that selloff seemed to draw new buyers on Thursday, thanks in part to strong demand for Treasury's $27bn seven-year note auction, which sent bond yields lower. Some end-of-quarter buying also helped.
Worries that rising bond yields - tied to mortgage rates - could derail a recovery has put some caution into the stock market after a three-month advance that lifted the S&P 500 index 40% off of 12-year lows.
The Federal Reserve Chairman told a House committee that he did not pressure Bank of America CEO Ken Lewis to complete his firm's purchase of Merrill Lynch, as Lewis testified two weeks ago. Bernanke also denied having asked former Treasury Secretary Henry Paulson to act on his behalf.
Bed Bath & Beyond reported higher quarterly earnings late on Wednesday that topped expectations, as cost cutting countered the impact of slowing demand. Shares gained 9.5% in active Nasdaq trading on Thursday.
A number of other retailers rose too, including Home Depot and Lowe's.
Homebuilder Lennar reported a larger-than-expected quarterly loss versus a year ago and a smaller-than-expected drop in revenue. However, the company reported a rise in new home sales and orders versus the first quarter, sending its shares up 17.5%.
Toll Brothers, Centex and KB Home were among the other gainers in the sector.
The number of Americans filing new claims for unemployment rose 15,000 to 627,000 last week, surprising economists who thought claims would fall to 600,000. Continuing claims, a measure of Americans receiving benefits for a week or more, rose to 6,738,000, after dropping in the previous week.
Another government report showed the first-quarter GDP growth shrank at a slower pace than initially thought. GDP shrank at an annual rate of 5.5% versus the initially reported 5.7% decline. Economists expected no change.
Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.54% from 3.68%.
US light crude oil for August delivery rose $1.56 to settle at $70.23 a barrel on the New York Mercantile Exchange after militants attacked a Royal Dutch Shell Plc pipeline supplying an export terminal in Nigeria, Africa’s largest producer.
COMEX gold for August delivery rose $5.10 to settle at $939.50 an ounce.
In currency trading, the dollar gained versus the euro and fell against the yen.
European shares pared some of the previous session's strong gains, with banks pacing the decline. The pan-European Dow Jones Stoxx 600 index fell 0.9% to 204.43. Germany's DAX index declined 0.7% to 4,800.56, while the French CAC-40 index lost 0.7% to 3,163.10 and the UK's FTSE 100 index was down 0.6% to 4,252.57.
Markets ended with modest gains on Wednesday. After a sluggish start and a range bound first half, key indices perked up in the second half as the bulls stepped on the gas. Power, Capital Goods, Pharma and the Realty stocks stock led from the front. However banking stocks were under pressure. The Mid-Cap and the Small-Cap indices outperformed the benchmark indices.
The BSE Sensex gained by 93 points to end at 14,422 after touching a high of 14,480 and a low of 14,207. The index had opened at 14,376 against the previous close of 14,324. The NSE Nifty gained 46 points or 1% to shut shop at 4,293.
Among the BSE Sectoral indices BSE Power index was the top gainer gaining 2.8%, followed by the BSE Capital Goods index up 2.5%, BSE Pharma index up 2.3% and BSE Realty index up 2%. However, the BSE Bankex index ended in the red down 0.12%.
Even the BSE Mid-Cap index gained 2.3%, BSE Small-Cap index up 2.2%.
Shares of Educomp shot up by over 11% to Rs3427 after Pearson and Educomp announced that they have established a 50:50 joint venture to offer vocational and skills training in India. As part of the agreement, Pearson would acquire a 50% ownership stake in Educomp's existing vocational training business.
The joint venture will provide vocational training to students and professionals across a range of industries including financial services, retail and construction. It will have a focus on English language training, which is often critical to an individual's employment prospects. Training will be delivered both online and through Educomp's network of centres, using Pearson's educational content, technology and related services.
Shares of Bajaj Auto were in top gear, the stock surged by over 2.5% to Rs960 after the Reserve Bank permitted FIIs to purchase the shares of the company as their holding in Bajaj Auto has gone below the trigger limit of 24% following the company's demerger of two non-banking finance companies.
"The restriction placed on the purchase of shares of Bajaj Auto on behalf of FIIs may be treated as withdrawn," RBI said in a release.
Earlier, RBI had asked FIIs not to purchase any further shares in Bajaj Auto as their holding had touched 24 per cent.
Shares of ABB surged by over 4.5% to Rs754 after the company announced that it won orders worth Rs2.2bn from Tata Projects Ltd to provide power products and solutions for a super-critical coal-fired power plant under construction in the southern India state of Andhra Pradesh.
Shares of Nagarjuna Const advanced by over 3.5% to Rs125 after the company announced that the board would meet on June 29 to consider private placement.
Shares of Andrew Yule were locked at 5% upper circuit to end at Rs51.10 after reports stated that government has given approval to the company for its disinvestment program. The scrip touched an intra-day high of Rs51.10 and a low of Rs51.10 and has recorded volumes of over 7,000 shares on BSE.
Shares of Renaissance Jewelry further extended gains and rallied by over 7% to Rs49.9. The stock sky rocketed by over 58% in the last four trading sessions.
The stock hit an intra-day high of Rs54 and an intra-day low of Rs48. The total traded quantity on the counter had exceeded over 0.5mn equity shares as compared to 0.2mn shares traded on Tuesday and mere 58,000 shares on Monday.
Renaissance Jewelry had hit a 52-week high of Rs68.35 on June 23, 2008 and 52-week low of Rs18.15 on March 05, 2009.
Shares of Torrent Power rallied by over 16% to Rs164 on the back of unusual volumes witnessed in the counter. The stock has hit an intra-day high of Rs169 and an intra-day low of Rs141. The total traded quantity has exceeded the average of 20 days traded volumes. Total volumes traded were ~2.8mn equity shares on the NSE.
The stock had hit a 52-week high of Rs177 on June 12, 2009 and 52-week low of Rs50 on October 28, 2008.
The total traded quantity has exceeded the average of 20 days traded volumes. Total volumes traded were ~2.8mn equity shares on the NSE.
Mahindra Holidays and Resorts Subscripton Details
Qualified Institutional Buyers (QIBs) 1.0930 times
Non Institutional Investors 1.2718
Retail Individual Investors (RIIs) 0.2533
OVERALL - 0.41 times
ISSUE CLOSES TODAY
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Syndicate Bank
We recommend a sell in Syndicate Bank from a short-term trading standpoint. It is evident from the charts of Syndicate Bank that after forming a multi-year low at Rs 37.6 in early March it bottomed out. Since then the stock was on an intermediate-term uptrend till it encountered resistance at Rs 100 on June 5.The stock reversed direction from this resistance level and has been on a short-term down trend. A negative divergence displayed in the daily relative strength index (RSI) backs the stock’s trend reversal. Moreover, we notice formation of a bearish engulfing candlestick pattern in the weekly chart signalling a short-term reversal. Recently, the stock breached its intermediate-term up trendline and is trading well below the 21-day moving average. The momentum indicators are heading towards the negative territory. We are bearish on the counter from a short-term perspective. We expect the stock’s decline to prolong until it hits our price target of Rs 63 in the approaching trading sessions. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 73.
via BL
Inflation remains in negative zone
WPI inflation declines 1.14% in the year through 13 June 2009
Inflation based on the wholesale price index remained in the negative zone for the second week in a row. Inflation based on the wholesale price index declined 1.14% in the year through 13 June 2009. The decline was, however, smaller than a 1.61% fall in the year through 6 June 2009.
Inflation had dipped to negative in early June 2009 for the first time since 1977-78.
Inflation continue to be in negative zone for the second week of June 09
Higher CPI quash benefits of WPI
The official Wholesale Price Index for all commodities for the week ended 13 June 2009 rose by 0.6% to 234.2 from 232.7 for the previous week. The annual rate of inflation, calculated on point-to-point basis, stood at -1.14% for the week ended 13 June 2009 as compared to -1.61% for the previous week and 11.80% during the corresponding week of the previous year.
All the major components of WPI recorded an increase from their previous week level. The index of primary articles rose by 0.1% to 256.3 from 256.0 for the previous week. Index of food and non-food articles move up from their pervious week levels. The index for food articles group rose by 0.2% to 251.2 from 250.8 for the previous week due to higher prices of tea and jowar (2% each) and arhar (1%). However, the prices of bajra (4%) and eggs (2%) declined. While index for non-food articles group also rose marginally to 236.0 from 235.9 for the previous week due to higher prices of raw jute (2%) and raw silk and rape & mustard seed (1% each).
The index for fuel, power, light and lubricant rose by 0.4% to 327.5 from 326.2 for the previous week due to higher prices of aviation turbine fuel (12%), light diesel oil (10%), furnace oil (3%) and naphtha (1%).
The major driver of WPI index, manufactured product rose by 1.0% to 205.8 from 203.8 for the previous week. The index for textiles, rubber and plastic products, chemicals and chemical products, transport equipment and parts rose from their previous week level. The index for textiles group rose by 0.7 % to 142.7 from 141.7 for the previous week due to higher prices of other cotton yarn and cotton yarn-'hanks (2% each) and cotton yarn-cones and synthetic yarn (1% each). The index for chemicals and chemical products group rose by 4.8 % to 228.2 from 217.7 for the previous week due to higher prices of capsules other than vitamin & antibiotics (58%) and liquid chlorine (1%).
However among manufactured product the index for food products, beverages tobacco and tobacco products, non-metallic mineral products, basic metals alloys and metal products, machinery and machine tools declined from their previous week levels.
Looking at the rise in all major indices of WPI, the plunge in WPI, only have a statistical significance. The higher base has led to a fall in WPI. However in real terms the situation is quite different. The soaring food prices, have put pressure on the daily consumption basket, reflected in the rising CPI. In addition to this the rise in CPI for May month is the highest in more in 13 years. It is the first time in more than a decade that consumer inflation in May has crossed the 10%-mark for the month. Point to point rate of inflation based on the CPI-AL and CPI-RL increased from 9.09% in April 2009 to 10.21% during May 2009.
Crude surpasses $70 again
Crude rises as militants attack pipeline in Nigeria
Crude prices at Nymex crossed $70 on Thursday, 25 June, 2009. Prices rose today after militants attacked a key pipeline in Nigeria, the fifth largest oil exporter to the U.S. Prices also rose as energy department's weekly inventory report showed yesterday more than expected drop in crude inventories for last week.
On Thursday, crude-oil futures for light sweet crude for July delivery closed at $70.23/barrel (higher by $1.56 or 2.3%). For the first time crude crossed $70 in a week. Last week, crude ended lower by 3.3%.
Crude had 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 53% since then. Year to date, in 2009, crude prices are higher by 39.8%.
EIA reported yesterday that crude inventories fell 3.8 million barrels in the week ended 19 June, 2009. Market was expecting a decline of 1.2 million barrels. Refiners boosted production in anticipation of higher fuel demand in the summer driving season. U.S. refineries ran at 87.1% of their operable capacity last week.
The government also reported that gasoline inventories increased by 3.9 million barrels last week, more than the buildup of 1 million barrels expected. Distillate inventories rose by 2.1 million barrels last week. Gasoline production stood at 9.2 million barrels a day last week, up 1% from the previous week. Total implied demand for petroleum products over the last four-week period has averaged 18.3 million barrels a day, down by 6.6% compared to the similar period last year
Also at the Nymex on Thursday, July reformulated gasoline rose 5.58 cents, or 3%, to $1.8983 a gallon and July heating oil gained 3.82 cents, or 2.2%, to $1.7763 a gallon.
Natural gas for July delivery gained 8.3 cents, or 2.2%, to $3.844 per million British thermal units. EIA reported today that U.S. natural gas inventories rose 94 billion cubic feet in the week ended 2 July, 2009. Market had expected an increase between 96 billion and 100 billion cubic feet.
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 3,428/barrel, higher by Rs 93 (2.8%) against previous day's close. Natural gas for July delivery closed at Rs 194.8/mmbtu, higher by Rs 4.6/mmbtu (2.4%).
FIIs continue selling selling
Outflow of Rs 601.20 crore on 24 June 2009
Foreign institutional investors (FIIs) sold shares worth a net Rs 601.20 crore on Wednesday, 24 June 2009, slightly lower than Rs 658.20 crore on Tuesday, 23 June 2009.
FII outflow of Rs 601.20 crore on 24 June 2009 was a result of gross purchases Rs 1,602.90 crore and gross sales Rs 2,204.10 crore. The BSE Sensex rose 98.72 points or 0.69% to 14,422.73 on that day.
FII inflow in June 2009 totaled Rs 2,964 crore (till 24 June 2009). FII inflow in calendar year 2009 totaled Rs 24,283.40 crore (till 24 June 2009).
There are a total of 1668 foreign funds registered with the Securities & Exchange Board of India (Sebi).
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