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Monday, June 29, 2009
Post Market Commentary - June 29 2009
The Sensex ended the volatile session on a flat note ahead of budget. Barring IT, consumer durables, realty, oil & gas, metal and PSU stocks ended higher. It opened with a gain of 51.26 points, at 14,815.90 on Monday following mixed global cues. After few minutes of trading, it erased all its gains and slipped into the negative terrain on profit booking. However the index bounced back into the positive on buying interest touching a high of 14,955.55 amid volatility and proceeded to trade higher on intense buying seen in frontliners. Later in the second part of the day, the benchmark index again fell hitting a low of 14,685.45 to finally close in marginally positive.
BSE Midcap and Smallcap index rose 1.14% and 1.50% respectively.
European stocks rose, with the Dow Jones Stoxx 600 Index rebounding from its first back-to-back weekly declines since March, as health-care and telephone shares gained. UK`s benchmark index FTSE 100 gained 26.92 points, or 0.63%, to trade at 4,266.86. French benchmark index CAC 40 advanced 41.67 points, or 1.33%, to trade at 3,171.38 and Germany`s benchmark index DAX rose 60.97 points, or 1.25%, to trade at 4,837.31. (4.15 p.m., IST)
Among the sectoral indices, BSE Consumer durables soared 4.24%, Realty, Metal, oil & gas rose over 2% each, PSU, Bankex and Power moved up over 1% each, while IT dipped 2.07%.
The Sensex ended the day with a gain of 21.10 points, or 0.14% at 14,785.74 after touching a high of 14,955.55 and a low of 14,685.45. The broad-based NSE Nifty gained 15.45 points, or 0.35% at 4,390.95 after hitting a high of 4,439.95 and a low of 4,350.90.
Major gainers in the 30-share index were Sterlite Industries (India) (5.66%), DLF (3.82%), Reliance Industries (2.78%), Oil & Natural Gas Corporation (2.61%), Tata Steel (2.38%), and Reliance Capital (2.23%).
On the other hand, Tata Motors (7.77%), Sun Pharmaceutical Industries (3.52%), Tata Consultancy Services (2.77%), Housing Development Finance Corporation (2.61%), Grasim Industries (2.43%), and Infosys Technologies (2.35%) were the major losers in the Sensex.
Overall market breadth was positive. Out of the total 2,723 stocks traded at BSE, 1,686 advanced, 964 declined while 73 remained unchanged.
Post Session Commentary - June 29 2009
Domestic market ended the volatile session on flat note backed by fresh selling in key stocks that emerged during last trading hours. However, market touched the day’s high during the second half of the trading, mirroring firm European markets but was unable to hold the momentum and slipped along with other Asian stocks. Earlier, benchmark indices moved between positive and negative terrain on continuous bouts of buying and selling ahead of the Union Budget 2009-2010 on 6 July 2009. In addition, Railway Budget is also due on 3 July 2009 and the Economic Survey on 2 July 2009. BSE Sensex ended above 14,750 mark and NSE Nifty closed around 4,400 level.
The market opened on upbeat note tracking positive cues from the global markets. Asian markets were in green in early trading and the US Markets closed mixed on Friday with the financial stocks reported a modest rally due to some upward movement in investment banking and brokerage stocks and diversified financial services stocks. However, the Indian benchmark indices lost ground soon after start and turned volatile. Investors were little cautious on delayed monsoon as it may lead to lower rural demand. Further, stocks managed to gain ground and bounced back on account of buying over the counters mainly led by positive European stocks. During the final trading hours, market again lost momentum as pared all its gains and ended on flat note on profit taking after previous session’s rally. From the sectoral front, most of the buying was witnessed in Consumer Durables, Realty, Metal, Oil & Gas, PSU and Bank stocks. BSE Mid Cap and Small Cap stocks also gained favour from the market. However, IT, Teck and Auto stocks contributed to most of the selling pressure on the market.
Among the Sensex pack 15 stocks ended in green territory and 15 in red. The market breadth indicating the overall health of the market remained positive as 1686 stocks closed in green while 964 stocks closed in red and 73 stocks remained unchanged in BSE.
The BSE Sensex closed marginally higher by 21.10 points at 14,784.74 and NSE Nifty ended slightly up by 15.45 points at 4,390.95. BSE Mid Caps and Small Caps closed with gains of 59.19 and 87.11 points at 5,230.09 and 5,887.86 respectively. The BSE Sensex touched intraday high of 14,955.55 and intraday low of 14,685.45.
Gainers from the BSE Sensex pack are Sterlite Industries (5.66%), DLF Ltd (3.82%), Reliance (2.78%), ONGC Ltd (2.61%), Tata Steel (2.38%), BHEL (1.54%), Hindalco (1.33%), NTPC Ltd (1.03%), M&M Ltd (0.94%), SBI (0.92%), Maruti Suzuki (0.68%) and HDFC Bank Ltd (0.64%).
Losers from the BSE Sensex pack are Tata Motors (7.77%), Sun Pharma (3.52%), TCS Ltd (2.77%), HDFC (2.61%), Grasim Industries (2.43%), Infosys Tech (2.35%), Herohonda Motors (2.13%), Rcom (1.76%), ITC Ltd (1.68%) and Wipro Ltd (1.32%).
On the global markets front the Asian markets, which opened before the Indian market, ended mostly lower. Hang Seng Nikkei 225, Straits Times index and Seoul Composite closed down by 71.75, 93.92, 0.78 and 6.08 points at 18,528.51, 9,783.47, 2.317.17 and 1,388.45 respectively. However, Shanghai Composite closed up by 47.10 points at 2,975.31.
European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading higher by 54.18 points at 4,830.65 and in London FTSE 100 is trading up by 21.81 points at. 4,262.82.
The BSE Consumer Durable ended up by (4.24%) or 122.24 points at 3,003.72. Gainers are Blue Star L (10.00%), Titan Ind (4.23%), Videocon Ind (0.99%) and Rajesh Export (0.69%).
The BSE Realty index gained (2.91%) or 97.97 points at 3,464.07 after successful fund raising by Unitech through a second round of qualified institutional placement. Scrips that gained are Pheonix Mill (5.36%), Housing Development (5.12%), Anant Raj (5.00%), Orbit Co (5.00%) and Sobha Dev (4.99%).
The BSE Metal index surged (2.59%) or 283.52 points to close at 11,214.93. Main gainers are Jindal Steel (5.91%), Sterlite Industries (5.66%), Steel Authority (4.19%), Welspan Gujarat SR (3.87%) and Tata Steel (2.38%).
The BSE Oil & Gas index increased by (2.40%) or 224.96 points at 9,613.29. Aban Offshore (3.51%), Reliance Petroleum (3.10%), Reliance (2.78%), ONGC Ltd (2.61%) and Gail India (2.02%) ended in positive territory.
The BSE IT index dropped by (2.07%) or 70 points to close at 3,305.32 on worries that the US economic recovery may take longer time that expected. Losers are Mphases Ltd (3.95%), TCS Ltd (2.77%), Infosys Tech (2.35%), Wipro Ltd (1.32%) and Financ Tech (1.17%).
The BSE Teck stocks lost (1.26%) or 33.72 points to close at 2,644.10. Major losers are Mphases Ltd (3.95%), TCS Ltd (2.77%), Idea Cell (2.52%), Infosys Tech (2.35%) and RCom (1.76%).
Wockhardt Limited surged 1.05%. The company announced the signing of an agreement to divest its Animal Health Division to Vetoquinol, France, Wockhardt''s Animal Health Division recorded net sales of Rs. 77 crore for the year ended December 31, 2008.
Jain Irrigation Systems Ltd. Ended up by 1.55%. The company has bagged large orders worth Rs. 158 crores (Rs.l580 million) from various Coca-Cola bottlers in India and overseas for supply of mango pulp for the 2009-2010 season. This is increase of more than 85% compared to last season. This product will be produced in the current mango season but dispatched over next year.
Larsen &, Toubro Limited (L&T) advanced by 0.24%. The company has bagged six orders aggregating to Rs.1230 crore from the electrical projects in the domestic market. This includes four orders valued at Rs. 1031 crore for transmission line & railway construction, and two orders worth Rs.199 crore for the construction of sub-stations.
Biocon Limited gained 1.21%. The company announced that it has executed a definitive agreement with Mylan Inc. for an exclusive collaboration on the development, manufacturing, supply and commercialization of multiple, high value generic biologic compounds for the global marketplace. Through this partnership, Mylan and Biocon bring together highly complementary capabilities that will significantly advance their efforts to secure a leading position in the emerging generic biologies industry.
Unitech Ltd zoomed 3.58% on reports it has raised Rs. 2,800 crore by placing shares with overseas private equity funds at Rs. 81 a share on Friday, 26 June 2009.
Tulip Telecom Ltd advanced by 6.30% after net profit jumped 60% to Rs. 105.73 crore on a 24% increase in total income to Rs. 519.52 crore in Q4 March 2009 over Q4 March 2008.
Jai Corp Ltd plunged 2.90% after the company reported net loss of Rs. 27.16 crore in Q4 March 2009 as against to net profit of Rs. 38.81 crore in Q4 March 2008.
Tata Motors Ltd dipped 7.77% after witnessing a consolidated net loss of Rs. 2,505.25 crore in the year ended March 2009 as against a net profit of Rs. 2,167.70 crore in the year ended March 2008.
Profit taking weighs market down
The market appeared to be heading towards a negative close, after a strong bout of profit-taking towards the close shaved off nearly 170 points from the day’s gains. After resuming with a positive gap of 51 points at 14816 the Sensex witnessed strong optimism for a better part of the trading session. While the action in several counters held the market firm above 14800 levels in the first half of the trading session, the index notched up further gains in the afternoon to touch the day's high of 14956. However, the market slipped towards the close as weakness in select heavyweight, information technology, teck and automobile stocks pared the gains. The Sensex ended 21 points up at 14786, while Nifty added 15 points to its kitty to close at 4391.
Market breadth on the BSE, the number of advancing shares to declining one, was positive. Of the 2,723 stocks traded, 1,686 stocks advanced, whereas 964 stocks declined. Seventy three stocks ended unchanged. Of the 13 sectoral indices on the BSE, eight ended positive while five indices ended negative. BSE CD, the consumer durable index, advanced the most--4.24% --followed by BSE Realty (up 2.91%), BSE Metal (up 2.59%) and BSE Oil & Gas (up 2.40%). The five losing sectoral indices of the day were BSE IT, BSE Teck, BSE Auto, BSE FMCG and BSE HC.
Select blue chips notched significant gains. Sterlite Industries rose 5.66% to Rs646.70, DLF advanced 3.82% to Rs338, Reliance Industries climbed 2.78% to Rs2,084.95, ONGC surged 2.61% to Rs1,068.05, Tata Steel scaled up 2.38% to Rs397.15, Bharat Heavy Electricals added 1.54% to reach Rs2,235.30, Hindalco Industries jumped 1.33% to Rs87.80 and National Thermal Power Corporation was up 1.03% to Rs196.95. Among laggards, Tata Motors tumbled 7.77% to Rs313.85 and Sun Pharmaceutical Industries dropped 3.52% to Rs1,100.35 while Tata Consultancy Services, HDFC, Grasim Industries and Infosys Technologies ended with loss of 2% each. Hero Honda, Reliance Communications, ITC and Wipro closed in negative territory.
Over 2.53 crore shares of Rishab Development changed hands on the BSE followed by Suzlon Energy (1.95 crore shares), IFCI (1.90 crore shares), Unitech (1.75 crore shares) and GMR Infrastructure (1.60 crore shares).
FIIs turn buyer after nine trading sessions
Inflow of Rs 672.90 crore on 26 June 2009
After sustained selling for nine trading sessions in a row, foreign funds turned buyers on Friday, 26 June 2009. Foreign institutional investors (FIIs) bought shares worth a net Rs 672.90 crore on Friday, 26 June 2009, as against an outflow of Rs 1,038.10 crore on Thursday, 25 June 2009.
FII inflow of Rs 672.90 crore on 26 June 2009 was a result of gross purchases Rs 2,547.70 crore and gross sales Rs 1,874.80 crore. The BSE Sensex surged 419.02 points or 2.92% to 14,764.64 on that day.
FII inflow in June 2009 totaled Rs 2,598.80 crore (till 26 June 2009). FII inflow in calendar year 2009 totaled Rs 23,918.20 crore (till 26 June 2009).
There are a total of 1668 foreign funds registered with the Securities & Exchange Board of India (Sebi).
Asian equities fail to impress
Listless sort of day sees most regional benchmarks ending mixed to lower
Asian stocks started the week on a mixed to bearish note with the regional benchmarks giving their initial gains to give indications that the world markets are likely to stay under some strain in the current week. Dollar rallied as safe haven seeking investors returned to the safety of the greenback after China's chief central banker said there will be no sudden changes in its policy on foreign exchange reserves. Apart from China, none of the regional benchmarks manage to record sizeable gains.
China stocks gained 1.61% on strength in property and consumer goods sectors, bucking the weak trend in most of the other markets. The shares in world's fastest growing economy rallied throughout the day, building onto the 0.61% gain they had cloaked by mid day as signs of the country not diversifying out of the US treasuries was taken as a sign that the policymakers in the Asian country expect the export demand from US to gather steam in due course.
The Australian share market fell in a late slide, pulled lower by the energy sector as the oil price fell further. The benchmark S&P/ASX200 index was recently 16.9 points, or 0.4 per cent, lower at 3886.9 points, while the broader All Ordinaries index was down 16.8 points, or 0.4 per cent, at 3882.9.
Japan's Nikkei average also fell 0.9 per cent, erasing morning gains as the drop in oil prices pulled down energy-related shares, with Nippon Oil losing nearly 2 per cent. Some selling pressure was observed at the days highs as traders booked some profits as the market has surged by a massive 32 per cent in the second quarter.
Japan's industrial output jumped a hefty 5.9 percent in May for a third straight month of growth, but traders are likely to shrug off this rise as nothing but manufacturer's attempts to increase inventories after having slashed them too sharply at the end of last year. This is unlikely to stay sustainable and may fail to bring in any desired gains as consumer spending in the western world is unlikely to come back on track soon.
This is more than likely to be the case as last week, the World Bank revised down global growth forecast in 2009 from - 1.7% to - 2.9%. As per the report, US economy is expected to contract deeper by - 3.0%, down from - 2.4%. Euro zone is expected to contract by - 4.5%, down from - 2.7% while Japan is expected to contract by - 6.8%, down from - 5.3%.
Last week, after quite a few ups and downs during the course of the week, the Dow Jones Industrial Average lost 101.34 points (1.2%) for the week to end at 8,438.39. The FOMC left the benchmark rates unchanged (fed funds at range of 0.00% and 0.25%), noting that there is a slowdown in the economic contraction. But the committee also stated that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period of time. The Dow Jones Industrial Average ended lower by 34 points at 8,438.39 on Friday. The Nasdaq Composite Index ended higher by 8.6 points at 1,838.22. S&P 500 ended lower by 1.3 points at 918.9.
In other Asian markets, Philippine share prices closed 0.38 percent lower while New Zealand's NZX-50 was flat, adding 0.16% and Hong Kong's Hang Seng dropped 0.39%. India's BSESENSEX managed to end in green, adding 0.14% though the market breath was very weak. Stocks in Indonesia, South Korea and Singapore ended in red to make it a day tilted more on the downside for Asia.
DLF July 2009 futures at premium
Turnover declines
Nifty July 2009 futures were at 4389, at a discount of 1.95 points as compared to the spot closing of 4390.95. Turnover in NSE's futures & options (F&O) segment was Rs 47,588.96 crore, lower than Rs 48,071.62 crore on Friday, 26 June 2009.
DLF July 2009 futures were at premium at 339.55 compared to the spot closing of 338.35.
Axis Bank July 2009 futures were at discount at 864.90 compared to the spot closing of 867.55.
Housing Development & Infrastructure July 2009 futures were at discount at 262.30 compared to the spot closing of 265.05.
In the cash market, the S&P CNX Nifty gained 15.45 points or 0.35% at 4390.95.
IPO Grey Market - Mahindra Holidays, Adani Power
Adani Power
110 to 130 (Approximate)
30 to 35
Mahindra Holidays
275 to 325
20 to 24
RIL firms up in choppy market
Key benchmark indices settled with small gains in what was a highly choppy trading session. After striking day's high in mid-afternoon trade, the key benchmark indices retreated sharply in late trade to sink into negative zone only to end with marginal gains. The BSE 30-share Sensex rose 21.10 points or 0.14% to 14,785.74, off 169.81 points from the day's, high but up 100.29 points from the day's low.
IT pivotals weighed dropped on fears a US economic recovery may take longer time than expected. Realty shares advanced as concerns of tight liquidity eased further. Index heavyweight Reliance Industries (RIL) rose.
The market was volatile. The market moved between positive and negative zone in early trade. It weakened in morning trade on lower US index futures. The market cut losses later as investors took fresh positions on hopes of a reform-oriented budget. The Sensex surged in early afternoon trade. The market pared gains after hitting fresh intraday high in afternoon trade.
The market firmed up again in mid-afternoon trade on firm European stocks. A sell-off pushed the Sensex into the red in late trade. The market regained positive zone at the fag end of the trading session
A fresh build of positions had triggered a near 3% rally in Sensex on Friday, 26 June 2009, following a reduction in lot sizes of derivative contracts on the National Stock Exchange. Lower lot size has made the contracts affordable to small traders and retail investors.
The National Stock Exchange (NSE) has reduced 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.
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.
The corporate sector is expecting a removal of the fringe benefit tax (FBT) in the budget. Under the current dispensation, an employer has to pay FBT at 30% on the fringe benefit, the taxable value of which is determined in accordance with a formula. FBT is a tax levied on perquisites-or fringe benefits -provided by an employer to his employees.
Meanwhile, domestic brokerages and fund houses want the government to remove securities transaction tax (STT) on trading in securities in the Budget. The Securities & Exchange Board of India (Sebi) members have already forwarded the demand of premier stock exchanges, BSE and NSE, to Finance Minister Pranab Mukherjee for scrapping STT in the Budget.
STT, which was introduced in the Union Budget 2004-05 by the then Finance Minister P Chidambaram, taxes every purchase and sale of securities entered into in a recognised stock exchange in India in securities like shares, debentures, bonds, and units of mutual funds. Equity investors pay an STT of 0.125% for every transaction in cash for the delivery of shares.
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).
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.
Meanwhile, before the budget, investors will be keenly watching the outcome of the Employees' Provident Fund Organisation (EPFO's) apex advisory body meet on 4 July 2009. The Central Board of Trustees (CBT) will take a view on the Finance Ministry's proposal to invest 15% of its corpus in equity. The EPFO has a corpus of about Rs 1,82,000 crore and the permission to invest 15% funds in equity could have positive implications for the capital market. A proposal to park funds in the stock market was earlier rejected by the EPFO's Finance and Investment Committee (FIC) at its meeting on 26 March 2009.
European markets were trading firm today, 29 June 2009 on buying in pharma shares. Key benchmark indices in UK, Germany and France were up by between 0.11% and 0.76%.
Most Asian markets were trading lower today, 29 June 2009 despite encouraging economic reports from Japan. Key benchmark indices in South Korea, Singapore, Taiwan, Japan, Hong Kong were down by between 0.03% and 1.12%. But China's Shanghai Composite rose 1.61%
Trading in the US index futures indicated the Dow could rise 30 points at the opening bell today, 29 June 2009. Earlier in the day, the US index futures were in the red.
US markets ended mixed on Friday, 26 June 2009 with the Nasdaq Composite index rising on strong demand for Palm's Inc's Pre smartphone, while the Dow took a hit on account of falling oil prices. Strength in some financial stocks helped cushion the S&P 500's decline.
The Dow Jones industrial average dropped 34.01 points, or 0.40%, to 8,438.39. The Standard & Poor's 500 Index fell 1.36 points, or 0.15%, to 918.90. But the Nasdaq Composite Index gained 8.68 points, or 0.47%, to 1,838.22.
The BSE 30-share Sensex rose 21.10 points or 0.14% to 14,785.74. The Sensex opened 51.26 points higher at 14,815.90. At the day's high of 14,955.55, the Sensex rose 190.91 points in mid-afternoon trade. The Sensex lost 79.19 points at the day's high low of 14,685.45 in morning trade
The S&P CNX Nifty was up 15.45 points or 0.35% to 4390.95. Nifty July 2009 futures were at 4389, at a discount of 1.95 points as compared to the spot closing of 4390.95. Turnover in NSE's futures & options (F&O) segment was Rs 47,588.96 crore, lower than Rs 48,071.62 crore on Friday, 26 June 2009.
The barometer index BSE Sensex is up 5,138.43 points or 53.26% in calendar year 2009 as on 29 June 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 6,625.34 points or 81.18% as on 29 June 2009
Coming back to today's trade, the BSE clocked a turnover of Rs 5969 crore, higher than Rs 5,541.06 crore on Friday, 26 June 2009.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1684 shares advanced as compared with 987 that declined. 65 shares remained unchanged.
The BSE Mid-Cap index rose 1.14% to 5,230.09 and the BSE Small-Cap index advanced 1.50% to 5,887.86. But both these indices outperformed the Sensex
Sectoral indices on BSE displayed mixed trend. The BSE Capital Goods index (up 0.87%), BSE Bankex (up 1.24%), and the BSE Realty index (up 2.94%), the BSE Consumer Durables index (up 4.24%), BSE Power index (up 1.10%), the BSE Oil & Gas index (up 2.40%), the BSE PSU index (up 1.73%), the BSE Metal index (up 2.59%), outperformed the Sensex
The BSE IT index (down 2.07%), the BSE TECk index (down 1.26%), the BSE Healthcare index (down 0.33%), the BSE Auto index (down 0.42%), the BSE FMCG index (down 0.37%), underperformed the Sensex.
Among the 30-member Sensex pack, 16 gained while the rest slipped
Metal shares rose on strong domestic demand. India's largest zinc and copper maker by sales Sterlite Industries galloped 8.49% to Rs 664 after its American depository receipt (ADR) jumped 5.48% on Friday, 26 June 2009. It was the top gainer from the Sensex pack.
Tata Steel (up 2.38%), JSW Steel (up 1.43%), Hindalco Industries (up 1.44%), Hindustan Zinc (up 1.43%), and Nalco (up 2.90%), edged higher
Rate sensitive realty stocks rose after successful fund raising by Unitech through a second round of qualified institutional placement. Unitech, India's second largest real estate company by sales, gained 3.52% to Rs 85.25. As per reports, Unitech has raised $575 million through qualified institutional placement (QIP) with overseas private equity funds at Rs 81 per share.
India's largest real estate developer by sales DLF jumped 3.69% to Rs 337.55.
Among other realty firms, Parsvnath Developers (up 4.95%), Sobha Developers (up 4.99%), Omaxe (up 3.37%), Akruti City (up 2.10%), HDIL (up 4.54%), edged higher.
India's largest private sector firm by market capitalisation Reliance Industries (RIL) advanced 2.62% to Rs 2081.90 on recent 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. The stock slipped from day's high of Rs 2011.90
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 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.
Some PSU stocks were in demand. India's largest oil exploration firm by net profit ONGC jumped 2.70% on reports it would get the coveted 'Mahanavaratna' status conferring greater operational autonomy.
Shares of other companies likely to get 'Mahanavaratna' status such as Indian Oil Corporation (up 1.13%) and Steel Authority of India (up 3.73%), also logged gains.
A total of 5 companies including 2 unlisted firms - BSNL and Coal India may get Mahanavaratna status. According to the criteria set by Department of Public Enterprises (DPE), only five pubic sector enterprises (PSUs) could meet the qualifying norm in turnover, profitability and networth. As per reports Mahanavaratna status would be given to PSUs who had clocked Rs 30,000 crore or more turnover in the past three years and earned more than Rs 5,000 crore profit after tax in three consecutive years.
Also, the Mahanavaratna-eligible PSU should have an average networth of Rs 15,000 crore and global presence, according to the cabinet note circulated by DPE.
BEML jumped 17.80% after net profit surged 45.2% to Rs 172.02 crore 20.4% rise in net sales rose 20.4% to Rs 1,262.51 crore in Q4 March 2009 over Q4 March 2008. The company announced the results after market hours on Friday, 26 June 2009.
India's largest commercial vehicle maker by sales Tata Motors tumbled 7.80% to Rs 313.75 and was the top loser from the Sensex pack. 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.
Meanwhile, Tata Motors, on 28 June 2009, launched in India its marquee car brands Jaguar and Land Rover. The company had completed the acquisition of the two British marquee car brands last year for $2.3 billion from Ford Motor Company.
India's top tractor maker by sales Mahindra & Mahindra (M&M) rose 1.08% after its unit Mahindra Holidays & Resorts India reportedly priced shares in its initial public offer (IPO) at Rs 300 each. The Mahindra Holidays IPO was subscribed nearly 10 times. The issue closed on Friday, 26 June 2009
India's largest bike maker by sales Hero Honda Motors slipped 2.19% while India's largest pharma company by sales Ranbaxy Laboratories gained 1.21%. The former has replaced the latter in the BSE 30-share Sensex from today
India's top pharma firm by market capitalisation Sun Pharma lost 3.36% extending Friday's over 10% after reports the US drug regulator has seized generic drugs made by Caraco Pharmaceutical Laboratories, a US subsidiary of Sun Pharma after the agency found manufacturing defects at company plants, including oversized tablets. Sun Pharma holds 70.21% stake in Caraco Pharmaceutical Laboratories.
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 1.84%), GVK power Infrastructure (up 3.23%), Punj Lloyd (up 2.29%), Nagarjuna Construction Company (up 3.78%), GMR Infrastructure (up 13.13%), gained.
India's largest engineering and construction company by sales Larsen & Toubro was unchanged at Rs 1610.80 despite winning six orders aggregating to Rs 1230 crore for electrical projects in the domestic market. The company made this announcement before market hours today, 29 June 2009.
In a move to push financially unviable highway projects worth approximately Rs 22,000 crore, the National Highways Authority of India (NHAI) has proposed a more lucrative hybrid model which will combine both toll as well as annuity payment under build operate transfer (BOT) scheme.
According to the proposed model, a concessionaire will get the viability gap funding (VGF), meaning the gap between the cost of the project and the expected return, up to a maximum of 40% of the project cost from NHAI. However, in case the developer needs more than 40% VGF, it has to make its own investment.
Suzlon Energy slumped 5.35% after reporting net loss of Rs 183.36 crore in Q4 March 2009 as compared with net profit of Rs 482.55 crore in Q4 March 2008. Net sales declined 25.8% to Rs 2037.07 crore in Q4 March 2009 over Q4 March 2008. The results were announced after market hours on Friday, 29 June 2009.
Cement shares slipped on reports prices are likely to soften by Rs 3-5 per 50 kilogram bag next month due to the twin effect of excess supply and lower demand. ACC (down 0.51%), Grasim (down 2.65%), Ambuja Cement (down 0.76%), UltraTech Cement (down 2.16%), slipped.
Post this price cut, retail cement prices will come down to Rs 255 in Mumbai, Gujarat, South India and to around Rs 245 in the northern and eastern markets. Grasim, ACC and Ambuja Cement are expected to announce price cut on 1 July 2009, reports added.
India Cements lost 4.81% after consolidated net profit declined 34% to Rs 423.25 crore on 14.8% rise in net sales to Rs 3,496.26 crore in the year ended March 2009 over the year ended March 2008. The company announced results on Saturday, 27 June 2009.
Outsourcing focussed IT stocks slipped on worries the US economic recovery may take longer time that expected. US is the biggest market for Indian IT firms. India's second largest software firm by sales Infosys Technologies slipped 2.01% despite a 2.67% rise in its ADR on Friday, 26 June 2009.
India's largest software services exporter by sales TCS declined 2.99%. India's third largest software services exporter by sales Wipro dropped 1.76% even as its ADR rose 3.75% on Friday, 26 June 2009
Bank stocks rose on hopes banks may get tax relief on interest earned on infrastructure lending in the Union Budget 2009-2010. But front line bank shares came off the day's highs. India's biggest bank in terms of branch network State Bank of India (SBI) rose 0.92%. The stock came off the day's f Rs 1777.60.
India's second largest private sector bank by net profit HDFC Bank gained 0.37% to Rs 1502.25 after hitting a day's high of Rs 1535. India's largest private sector bank by net profit ICICI Bank slipped 1.77% to Rs 741, off the day's high of Rs 772.70.
Among notable gainers were Union Bank of India (up 6.15%), Kotak Mahindra Bank (up 2.63%), Axis Bank (up 5.20%), Canara Bank (up 2.22%), and Punjab National Bank (up 3.31%).
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.
Indiabulls Financial Services was locked at 5% upper limit after 20 lakh shares changed hands in two block deals on BSE and NSE combined.
India's top cellular services provider by sales Bharti Airtel slipped 0.44%. As per reports, JP Morgan, BNP Paribas, HSBC and Barclays are in talks with Bharti Airtel to fund part of the $4 billion needed by Bharti Airtel to complete its $23-billion merger with MTN, Africa's largest mobile phone operator. The merger deal will see both Bharti and MTN offering equity stakes and cash to each other. Bharti will have to make a net cash payment of around $4 billion to complete the deal, which will see it acquiring a 49% stake in MTN, which, in turn, will get a 36% economic interest in the Indian firm. Both companies are in exclusive talks till 31 July 2009.
India's second largest listed telecom services provider by sales Reliance Communications shed 1.86% on reports the company is in advanced talks with private equity firms Carlyle Group and Providence Equity to divest raise capital of its subsidiary BIG TV.
Tulip Telecom spurted 7.27% after net profit jumped 60% to Rs 105.73 crore on a 24% increase in total income to Rs 519.52 crore in Q4 March 2009 over Q4 March 2008. The results were announced before market hours today, 29 June 2009.
Sugar shares gained after sugar prices moved up by Rs 50 a quintal to Rs 2,400 today, 29 June 2009 in the wholesale foodgrains market. Bajaj Hindusthan (up 11.33%), Triveni Engineering (up 1.63%), Ugar Sugar (up 1.96%), Sakthi Sugar (up 5%), Shree Renuka Sugar (up 4.03%), and Balrampur Chini Mills (up 3.71%), rose.
Shares of firms which rely on orders from Indian railways rose on expectation of some positive announcement in the forthcoming Railway Budget on 3 July 2009. Kernex Microsystems (up 5%), Hind Rectifiers (up 4.76%), Texmaco (up 5%), Titagarh Wagons (up 4.76%), Kalindee Rail Nirman Engineers (up 4.47%), Stone India (up 4.91%), spurted.
Rishabhdev Technocable settled on BSE at Rs 27.20 on BSE on its day of debut. The stock listed on Rs 42, a 27.27% premium compared with issue price of Rs 33 per share.
GMR Infrastructure was the top traded counter on BSE with turnover of Rs 244.84 crore followed by Suzlon Energy (Rs 228.90 crore), HDIL (Rs 216.75 crore), Reliance Industries (Rs 197.37 crore) and Reliance Capital (Rs 181.35 crore).
Rishabhdev Technocable led the volumes chart on BSE with volume of 2.53 crore shares followed by Suzlon Energy (1.95 crore shares), IFCI (1.90 crore shares), Unitech (1.75 crore shares) and GMR Infrastructure (1.60 crore shares)
Jain Irrigation Systems rose 1.55% after the company bagged fresh orders aggregating Rs 158 crore. The company announced the new order win before trading hours today, 29 June 2009.
Adani Enterprises was locked at 5% upper limit after a block deal of two lakh shares was executed on NSE at Rs 829.40 per share. The block deal constituted 0.08% of the company's equity.
VST Tiller Tractors rose 1.86% after the company's board recommended a 1:2 bonus issue.
BSE Bulk Deals to Watch - June 29 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
29/6/2009 524412 AAREY DRUGS HITEN BHUPATRAI MEHTA B 35049 33.65
29/6/2009 524412 AAREY DRUGS HITEN BHUPATRAI MEHTA S 35049 33.81
29/6/2009 524412 AAREY DRUGS C SHAH CHAMPAKLAL S 39212 34.26
29/6/2009 513149 ACROW INDIA VINOD SHARES LTD B 6000 125.67
29/6/2009 513149 ACROW INDIA VINOD SHARES LTD S 6000 125.67
29/6/2009 512149 AVANCE TECHN JASMIN SUSILKUMAR BAJORIYA B 101500 36.45
29/6/2009 512149 AVANCE TECHN JIGNESH CHANDRAKANT SHAH B 95831 36.32
29/6/2009 512149 AVANCE TECHN JASMIN SUSILKUMAR BAJORIYA S 81471 36.30
29/6/2009 512149 AVANCE TECHN CHANDRAKANT B SHAH S 80000 36.44
29/6/2009 512149 AVANCE TECHN JASMIN S BAJORIYA S 35956 36.45
29/6/2009 512149 AVANCE TECHN VICKY RAJESHBHAI JHAVERI S 25000 36.45
29/6/2009 532995 AVON CORP NEENA DILIP VARIYA S 100000 9.29
29/6/2009 500032 BAJAJHINDLTD JUPITER ENTERPRISES LTD B 1392228 223.01
29/6/2009 500032 BAJAJHINDLTD GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD S 850548 224.25
29/6/2009 531682 CAT TECHNOL S V ENTERPRISES B 193639 7.97
29/6/2009 590080 EASTERN GAS AJAY RAVINDRA SHAH B 112585 72.22
29/6/2009 590080 EASTERN GAS MAYUR NARAYANDAS DARJI B 53197 70.58
29/6/2009 590080 EASTERN GAS HITESH SHASHIKANT JHAVERI B 112099 70.20
29/6/2009 590080 EASTERN GAS CHAINROOP DUGGAR B 52500 70.20
29/6/2009 590080 EASTERN GAS AJAY RAVINDRA SHAH S 136984 71.84
29/6/2009 590080 EASTERN GAS MAYUR NARAYANDAS DARJI S 54447 70.48
29/6/2009 590080 EASTERN GAS CHAINROOP DUGGAR S 75000 70.47
29/6/2009 512604 HARIA EXPO L VILCO PHARMA PVT LTD B 56140 4.30
29/6/2009 512604 HARIA EXPO L MOTICHAND MEGHAN BEED S 56140 4.30
29/6/2009 532821 INDUSFILA INDIA INFOLINE INVTS. SERVICES LTD S 173000 23.07
29/6/2009 522183 ITL INDUSTRI ROHIT GADIA S 51169 33.75
29/6/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 128687 46.15
29/6/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 109841 45.87
29/6/2009 516078 JUMBO BAG LT HEMENDRA AGARWAL S 40000 45.26
29/6/2009 531784 KADAMB CONST SAMRIDDHI COMMOTRADE PRIVATE LIMITED B 15000 32.00
29/6/2009 531784 KADAMB CONST RAMBHABA HLDG. & TRDG. CO. PVT S 15000 32.00
29/6/2009 522259 KALIN RAIL N JMP SECURITIES PVT LTD B 117045 226.30
29/6/2009 522259 KALIN RAIL N BP FINTRADE PRIVATE LIMITED B 107904 226.21
29/6/2009 522259 KALIN RAIL N JMP SECURITIES PVT LTD S 112045 226.26
29/6/2009 522259 KALIN RAIL N BP FINTRADE PRIVATE LIMITED S 105816 226.22
29/6/2009 505890 KENNAMETAL KOTAK MAHINDRA MUTUAL FUND S 33123 148.92
29/6/2009 531602 KOFF BR PICT LAKSHMI RAJYAM UPPUTURI S 310798 3.56
29/6/2009 533080 MOLDTK PLA RAJENDAR REDDY NARRA B 47275 41.61
29/6/2009 533080 MOLDTK PLA SUDHINDAR K KHANNA ( NRO) S 56083 41.77
29/6/2009 533080 MOLDTK PLA SUNIDHI SECURITIES & FINANCE LTD. S 40217 42.14
29/6/2009 521030 NAKODA TEXT DHIRAJLAL V SANGHVI HUF S 79455 40.86
29/6/2009 532798 NTWK MED INV UFI INSURANCE BROKERS PRIVATE LIMITED B 550000 131.48
29/6/2009 532798 NTWK MED INV PRUDENTIAL ICICI MUTUAL FUND S 556000 131.35
29/6/2009 523483 PACIFIC INDU WITHAL COMMERCIAL PVT LTD S 11300 268.70
29/6/2009 533083 RISHABHDEV RAKHI KALPESH BHANDARI B 449395 30.96
29/6/2009 533083 RISHABHDEV NAVEEN TAPARIA B 194985 32.75
29/6/2009 533083 RISHABHDEV A.A.DOSHI SHARE & STOCK BROKERS LTD B 234353 28.57
29/6/2009 533083 RISHABHDEV AMU SHARES AND SECURITIES LIMITED B 178246 33.63
29/6/2009 533083 RISHABHDEV KANUDIA CAPITAL AND MANAGEMENT SERVICES PVT LTD B 209077 32.97
29/6/2009 533083 RISHABHDEV CHIRAG SHASHIKANT TANNA B 235692 31.38
29/6/2009 533083 RISHABHDEV UMESH DHAN SINGH B 203493 31.55
29/6/2009 533083 RISHABHDEV SMITA M PATEL B 85030 31.53
29/6/2009 533083 RISHABHDEV DEEPAK SHANTILAL CHHEDA B 319921 34.08
29/6/2009 533083 RISHABHDEV AMIT MANILAL GALA B 329499 32.79
29/6/2009 533083 RISHABHDEV GOURAV GUPTA B 140336 33.08
29/6/2009 533083 RISHABHDEV VAIBHAV S SHAH B 128100 33.33
29/6/2009 533083 RISHABHDEV EPOCH SYNTHETICS PVT LTD B 211760 32.34
29/6/2009 533083 RISHABHDEV BHARAT RATILAL SHAH B 75000 31.06
29/6/2009 533083 RISHABHDEV DKG SECURITIES PVT. LTD. B 1006436 33.88
29/6/2009 533083 RISHABHDEV AMISHA DEVLOPERS LIMITED B 103000 33.73
29/6/2009 533083 RISHABHDEV MUKTANANDA COMMERCIAL PVT LTD B 173860 36.42
29/6/2009 533083 RISHABHDEV NIRAJ HARSUKH SANGHVI B 286963 32.81
29/6/2009 533083 RISHABHDEV MANJULA DHIRAJLAL CHHADVA B 86139 35.45
29/6/2009 533083 RISHABHDEV VAIBHAV DOSHI B 339193 37.63
29/6/2009 533083 RISHABHDEV Naman Securities & Finance Pvt. Ltd. B 903276 33.12
29/6/2009 533083 RISHABHDEV DEVKANT SYNTHETICS INDIA PVT. B 400000 41.46
29/6/2009 533083 RISHABHDEV JMP SECURITIES PVT LTD B 276771 31.85
29/6/2009 533083 RISHABHDEV AMIT SAHITA FINANCE PVT. LTD. B 313445 32.83
29/6/2009 533083 RISHABHDEV SHRI BHIKSHUK FINANCIAL PVT. LTD. B 162209 34.00
29/6/2009 533083 RISHABHDEV TRIPTI SINGHVI B 253950 34.09
29/6/2009 533083 RISHABHDEV KALASH SHARES AND SECURITIES PVT.LTD B 170216 33.01
29/6/2009 533083 RISHABHDEV SAMRIDHI SHARE AND STOCK BROKER LIMITED B 101903 32.10
29/6/2009 533083 RISHABHDEV MLJ CAPITAL SERVICES LTD. B 127000 31.96
29/6/2009 533083 RISHABHDEV DRB SECURITIES PVT LTD B 350000 34.49
29/6/2009 533083 RISHABHDEV ARPIT SHARE BROKERS PRIVATE LIMITED B 173097 32.11
29/6/2009 533083 RISHABHDEV JHAVERI TRADING & INVESTMART PVT LTD B 150280 34.09
29/6/2009 533083 RISHABHDEV COSMO INVESTMENT B 99401 37.82
29/6/2009 533083 RISHABHDEV H.J. SECURITIES PVT. LTD. B 316359 37.27
29/6/2009 533083 RISHABHDEV SUNDEEP CHHABRA B 200000 43.71
29/6/2009 533083 RISHABHDEV DEEPAK POPATLAL VORA B 97001 31.14
29/6/2009 533083 RISHABHDEV KANUDIA CAPITAL AND MANAGEMENT SERVICES PVT LTD S 209077 31.46
29/6/2009 533083 RISHABHDEV CHIRAG SHASHIKANT TANNA S 232945 31.26
29/6/2009 533083 RISHABHDEV UMESH DHAN SINGH S 200834 31.12
29/6/2009 533083 RISHABHDEV SMITA M PATEL S 85030 31.54
29/6/2009 533083 RISHABHDEV DEEPAK SHANTILAL CHHEDA S 319921 34.25
29/6/2009 533083 RISHABHDEV AMIT MANILAL GALA S 329835 32.90
29/6/2009 533083 RISHABHDEV GOURAV GUPTA S 140336 33.05
29/6/2009 533083 RISHABHDEV VAIBHAV S SHAH S 149422 31.14
29/6/2009 533083 RISHABHDEV EPOCH SYNTHETICS PVT LTD S 234612 28.09
29/6/2009 533083 RISHABHDEV UPENDRA CHIRAG VIBHANI S 100000 36.93
29/6/2009 533083 RISHABHDEV BHARAT RATILAL SHAH S 75000 32.49
29/6/2009 533083 RISHABHDEV DKG SECURITIES PVT. LTD. S 1006436 34.58
29/6/2009 533083 RISHABHDEV ADHARSHILA VENTURE CAPITAL FUND LIMITED S 200000 37.98
29/6/2009 533083 RISHABHDEV PIYUSH MAGANLAL SHAH S 95000 39.29
29/6/2009 533083 RISHABHDEV AMISHA DEVLOPERS LIMITED S 93000 31.87
29/6/2009 533083 RISHABHDEV MUKTANANDA COMMERCIAL PVT LTD S 173860 36.60
29/6/2009 533083 RISHABHDEV AJAY R MOKARIYA S 400000 36.30
29/6/2009 533083 RISHABHDEV NIRAJ HARSUKH SANGHVI S 286963 33.68
29/6/2009 533083 RISHABHDEV MANJULA DHIRAJLAL CHHADVA S 86139 35.79
29/6/2009 533083 RISHABHDEV VAIBHAV DOSHI S 339529 36.33
29/6/2009 533083 RISHABHDEV Naman Securities & Finance Pvt. Ltd. S 903276 33.15
29/6/2009 533083 RISHABHDEV DEVKANT SYNTHETICS INDIA PVT. S 458788 34.34
29/6/2009 533083 RISHABHDEV JMP SECURITIES PVT LTD S 153771 35.25
29/6/2009 533083 RISHABHDEV AMIT SAHITA FINANCE PVT. LTD. S 313445 32.85
29/6/2009 533083 RISHABHDEV SHRI BHIKSHUK FINANCIAL PVT. LTD. S 162209 32.40
29/6/2009 533083 RISHABHDEV MOTA RAMNIK JAGSHI HUF S 128000 43.48
29/6/2009 533083 RISHABHDEV TRIPTI SINGHVI S 253950 31.36
29/6/2009 533083 RISHABHDEV KALASH SHARES AND SECURITIES PVT.LTD S 170216 32.94
29/6/2009 533083 RISHABHDEV KBII SECURITIES PVT LTD S 169794 34.10
29/6/2009 533083 RISHABHDEV TAIB BANK A/C TSML S 500000 39.49
29/6/2009 533083 RISHABHDEV SAMRIDHI SHARE AND STOCK BROKER LIMITED S 101903 29.72
29/6/2009 533083 RISHABHDEV MLJ CAPITAL SERVICES LTD. S 147912 29.72
29/6/2009 533083 RISHABHDEV DRB SECURITIES PVT LTD S 350000 36.32
29/6/2009 533083 RISHABHDEV ARPIT SHARE BROKERS PRIVATE LIMITED S 173097 27.33
29/6/2009 533083 RISHABHDEV JHAVERI TRADING & INVESTMART PVT LTD S 150280 27.76
29/6/2009 533083 RISHABHDEV GHADIYA NIRMAL S 202000 32.26
29/6/2009 533083 RISHABHDEV COSMO INVESTMENT S 99401 36.61
29/6/2009 533083 RISHABHDEV H.J. SECURITIES PVT. LTD. S 316359 37.36
29/6/2009 533083 RISHABHDEV CHIRAG UPENDRA VIBHANI S 100000 36.91
29/6/2009 533083 RISHABHDEV SUNDEEP CHHABRA S 200000 33.37
29/6/2009 533083 RISHABHDEV SONAL DINESH SHAH S 97980 33.00
29/6/2009 533083 RISHABHDEV DEEPAK POPATLAL VORA S 92001 32.18
29/6/2009 533083 RISHABHDEV RAKHI KALPESH BHANDARI S 449395 32.27
29/6/2009 533083 RISHABHDEV NAVEEN TAPARIA S 194985 34.14
29/6/2009 533083 RISHABHDEV INDIA MAX INVESTMENT FUND LTD S 75000 37.36
29/6/2009 533083 RISHABHDEV A.A.DOSHI SHARE & STOCK BROKERS LTD S 234353 28.67
29/6/2009 533083 RISHABHDEV AMU SHARES AND SECURITIES LIMITED S 178246 33.69
29/6/2009 524540 SECUN HEALTH SETU SECURITIES PVT LTD B 27000 40.41
29/6/2009 524540 SECUN HEALTH NALINI JAYANTH ALURI S 38989 40.56
29/6/2009 524540 SECUN HEALTH PALEMPATISLM CHOWDARY S 28760 40.54
29/6/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD B 105661 58.15
29/6/2009 526133 SUPERTEX IND SHAILESH SOMABHAI PATEL B 55000 58.11
29/6/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 104230 58.33
29/6/2009 526133 SUPERTEX IND NIKHILBHAI VINAKANTBHAI SHAH S 68000 58.10
NSE Bulk Deals to Watch - June 29 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
29-JUN-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,231004,914.73,-
29-JUN-2009,BAJAJHIND,Bajaj Hindusthan Ltd,JUPITER ENTERPRISES LTD,BUY,2071915,223.12,-
29-JUN-2009,EVERONN,Everonn Systems India Lim,MULTIPLEX CAPITAL LTD.,BUY,79540,420.72,-
29-JUN-2009,GLORY,Glory Polyfilms Limited,GAURAV INVESTMENTS & CONSULTANCY (PVT) LTD.,BUY,101220,25.41,-
29-JUN-2009,HDIL,Housing Development and I,SAPPHIRE LAND DEVELOPMENT PRIV,BUY,1566732,264.57,-
29-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,10244796,22.05,-
29-JUN-2009,KALINDEE,Kalindee Rail Nirman (Eng,BP FINTRADE PRIVATE LIMITED,BUY,79515,225.89,-
29-JUN-2009,KALINDEE,Kalindee Rail Nirman (Eng,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,146722,226.21,-
29-JUN-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,230599,915.36,-
29-JUN-2009,BAJAJHIND,Bajaj Hindusthan Ltd,JUPITER ENTERPRISES LTD,SELL,253907,229.82,-
29-JUN-2009,EVERONN,Everonn Systems India Lim,MULTIPLEX CAPITAL LTD.,SELL,79540,420.87,-
29-JUN-2009,GLORY,Glory Polyfilms Limited,GAURAV INVESTMENTS & CONSULTANCY (PVT) LTD.,SELL,79392,25.45,-
29-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,11266446,22.02,-
29-JUN-2009,KALINDEE,Kalindee Rail Nirman (Eng,BP FINTRADE PRIVATE LIMITED,SELL,78765,225.22,-
29-JUN-2009,KALINDEE,Kalindee Rail Nirman (Eng,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,139027,226.17,-
Pre Session Commentary - June 29 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened in green on the back of better than expected US personal income data for May which has recorded a 1.4% increase. In the domestic arena the SEBI is contemplating to increase the markets’ trading hours (cash market) from the current timings to 9 am – 5pm. Today one could witness some profit booking pressures in the domestic arena due to lack of specific news.
On Friday, domestic markets closed with phenomenal gains. The sentiments across Asia helped push the domestic sentiments to high levels. The surge in the US markets last night has pumped the buying sentiments across Asian markets. In the domestic arena short covering boosted the early trading hours and later some fresh long positions thrust the markets at broader level. Sectors like Bankex, CG, IT and CD were the forerunners with phenomenal gains of 4.31%, 4.17%, 3.64% and 3.17% respectively. On the other hand Mid cap and Small also recorded moderate gains of 2.40% and 1.89% respectively. We expect the markets to be trading range bound.
The BSE Sensex closed with a gain of 419.02 points at 14,764.64 and NSE Nifty ended with a gain of 133.65 points at 4,375.50. BSE Mid Caps and Small Caps closed with gains of 121 points and 107.73 points at 5,170.90 and 5,800.75 respectively. The BSE Sensex touched intraday high of 14,781.91 and intraday low of 14,373.57.
On Friday, the US Markets closed mixed. The session started with a choppy mood due to lack of news and many stocks were struggling to find a direction throughout the session. Financial stocks were in the shine on the back of surge in investment banking, brokerage and financial services stocks that closed with gains of 1.7% and 1.8% respectively. On a macro economic perspective, personal income for the month of May made a surprisingly strong 1.4% increase, however spending increased by 0.3% inline with expectations. Personal consumption expenditures increased 0.1% month-over-month, as expected. The US light crude oil for August Futures delivery declined by 1.5% at $69.17 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) fell by 34.01 points at 8,438.39 the NASDAQ Composite (RIXF) index inclined by 8.68 points at 1,838.22 and the S&P 500 (SPX) fell by 1.36 points at 918.90.
Today major stock markets in Asia are trading positive. Hang Seng is up by 41.06 points at 18,641.32. Shanghai Composite is up by 17.834 points at 2,946.045. Japan''s Nikkei is trading up by 31.60 points at 9,908.99. Strait Times is flat at 2,317.86. KLSE Composite is up by 1.66 points at 1,075.77.
Indian ADRs ended higher on Friday. In the banking space, ICICI Bank was up 4.46% and HDFC Bank was up 5.93%. In the IT space, Patni Computers was down 2.20%, Wipro was up 3.75%, Infosys was up 2.67% while Satyam Computers was down 3.59%. In the telecom space, MTNL was flat while Tata Communication was up 5.12%. In other sectors, Dr Reddy''s Labs was up 0.12%, Sterlite Industries was up 5.48% and Tata Motors was up 0.31%.
The FIIs on Friday stood as net sellers in equity and net buyers in debt. The Gross equity purchased stood at Rs 4,111.50 Crore and gross debt purchased stood at Rs 1,528.40 Crore, while the gross equity sold stood at Rs 5,149.60 Crore and gross debt sold stood at Rs 99.70 Crore. Therefore, the net investment of equity and debt reported were Rs (1,038.10) Crore and Rs 1,428.70 Crore respectively.
On Friday, the partially convertible rupee closed its highest since May 19 at Rs 48.10/11, 1.03% stronger than its previous close at 48.60/61 per dollar. The Indian rupee gained phenomenally on the back of remarkable surge in local and Asian stock markets.
On BSE, total number of shares traded were 38.36 Crore and total turnover stood at Rs 5,541.06 Crore. On NSE, total number of shares traded was 89.61 Crore and total turnover was Rs 17,540.88 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 57187066, followed by Suzlon Energy with 52397590, Tata Steel with 17427623, DLF with 13689972 and Hindalco with 11675776 shares.
On NSE Future and Options, total number of contracts traded in index futures was 673970 with a total turnover of Rs 13,971.56 Crore. Along with this total number of contracts traded in stock futures were 597697 with a total turnover of Rs 17,377.01 Crore. Total numbers of contracts for index options were 698899 with a total turnover of Rs 15,522.55 Crore and total numbers of contracts for stock options were 35542 and notional turnover was Rs 1,200.50 Crore.
Today, Nifty would have a support at 4,310 and resistance at 4,421 and BSE Sensex has support at 14,595 and resistance at 14,925.
Market may remain volatile
After registering the gains of 400 points on Fridays, the market is likely to exhibit weak trends on the back of a strong intra-day volatile moves. The flat US markets and mixed Asian indices in morning trades also likely to put pressure on the domestic indices. However, the FIIs have turned net sellers of equities in the last session may help the investors' sentiment remain negative. Among the domestic indices, the Nifty on upside could test around the 4400 level and may witness support around the 4350 level. The Sensex has a likely support at 14600 and may test higher levels of 14900.
US indices closed flat on Friday, with the Dow Jones sliding over 34 points to close at 8438 while the Nasdaq gaining by 9 points at 1838.
The Indian ADRs witnessed decent to firm buying support on US bourses. Rediff was the major gainer amongst the ADRs and vaulted over 10.98%, while HDFc Bank gained 5.93%, VSNL propelled 5.12% and ICICI Bank moved up 4.46%. Infosys, Wipro, Tata Motors and Dr Reddy's were up over 0.50-2% each. Satyam & Patni Computer however lost marginallly and closed in negative territory.
Crude oil prices in the global market moved down on Friday. The Nymex light crude oil for August series lost by $1.07 at $69.16 per barrel. In the commodity segment, the Comex gold for August delivery moved up by $1.50 to settle at $941 an ounce.
Daily trend of FII/MF investment in equities
On June 25 2009, FIIs were net sellers of stocks to the tune of Rs1038 crore (purchases worth Rs4,112 crore and sales of Rs5,150 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs691 crore (purchases worth Rs1955 crore and sales of Rs1264 crore).
Markets seen opening firm
Key benchmark indices are seen opening firm extending Friday's around 3% surge on follow-up buying. The SGX Nifty futures for July 2009 expiry rose 6 points in Singapore. Global cues were mixed. However it may give up gains later in the day as profit booking may emerge with the mood turning cautious ahead of the Union Budget 200-10
The Union Budget 200-10 will be presented on 6 July 2009, with the Annual economic survey scheduled on 2 July 2009 followed by the Rail Budget on 3 July 2009. 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.
Asian markets were trading on a mixed note today, 29 June 2009 even as encouraging economic reports from Japan helped revive hopes of a faster economic revival. Key benchmark indices in China, South Korea, Taiwan and Japan were up by between 0.03% and 0.61%. However indices in Hong Kong and Singapore were down 0.11% and 0.23% respectively
US markets ended mixed on Friday, 26 June 2009 with the Nasdaq Composite index rising on strong demand for Palm's Inc's Pre smartphone, while the Dow took a hit on account of falling oil prices and strength in some financial stocks helped cushion the S&P 500's decline.
The Dow Jones industrial average dropped 34.01 points, or 0.40 per cent, to 8,438.39. The Standard & Poor's 500 Index fell 1.36 points, or 0.15 per cent, to 918.90. But the Nasdaq Composite Index gained 8.68 points, or 0.47 per cent, to 1,838.22.
Back home, as per the provisional figures on the NSE, foreign institutional investors (FIIs) bought shares worth Rs 551.14 crore on Friday, 26 June 2009 while domestic institutional investors purchased shares worth Rs 333.95 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.
Stocks to Watch - Tata Motors, Suzlon Energy, Bharti Airtel
Tata Motors reported a net consolidated loss of Rs 2505.25 crore in the year ended March 2009 as against a net profit of Rs 2167.70 crore in the year ended March 2008. Consolidated total income rose 99.67% to Rs 71737.81 crore in the year ended March 2009 over the year ended March 2008.
Tata Motors on Sunday, 28 June 2009, announced the launch in India of Jaguar and Land Rover vehicles, the marquee brands it bought from Ford Motors last year.
JP Morgan, BNP Paribas, HSBC and Barclays are reported to be in talks with Bharti Airtel to fund part of the $4 billion needed by the Indian telecom major to complete its merger with South Africa's MTN.
The board of Suzlon Energy has approved raising up to Rs 5000 crore through the issue of equity, debt or other instruments. The board has also approved raising the investment
limit by foreign funds to 49% from 24% now, it said in a notice to the stock exchange. At the end of 25 June 2009, the company's order book position stood at Rs 7901 crore.
Cement prices are reportedly expected to soften by Rs 3 - Rs 5 per 50-kilogram bag next month due to the twin effect of excess supply and lower demand.
Drug firms Wockhardt and Biocon have reportedly come under the scanner of the National Pharmaceutical Pricing Authority for allegedly violating pricing norms on two insulin analogue brands sold by the two firms.
Wockhardt said on Sunday, 28 June 2009, it had signed an agreement to divest its Animal Health Division to France's Vetoquinol, but did not provide any financial details on the deal. The transaction would take effect in the second half of 2009, it added.
Dewan Housing Finance Corporation received approval on Saturday, 27 June 2009, from its shareholders to sell equity up to Rs 300 crore to qualified institutional buyers, the company told the stock exchanges. In an extraordinary general meeting, shareholders also allowed the company to issue up to 1 crore shares to its founders, the company notice to the exchanges said.
Allahabad Bank has lowered its benchmark prime lending rate (BPLR) by 25 basis points to 12%, from 12.25%, it said in a notice to the stock exchanges on Saturday. The cut in the state-run bank's prime lending rate would be effective from 1 July 2009, it added. Indian banks use BPLR as a benchmark for pricing their loan products.
S. Kumars Nationwide has acquired US clothing company Hartmarx Corp for about $120 million, the company said in a notice to stock exchanges on Saturday. The company acquired Chicago-based Hartmarx through its US subsidiary SKNL North America BV, along with its operating partner Emerisque UK, the company said. SKNL will directly be investing $35 million into this transaction, it added.
The board of Pyramid Saimira Theatre has approved issuing 1 crore shares via qualified institutional placement. The company also approved issuing up to 1 crore warrants to promoters.
US stocks manage a steady finish
Gains in the later part of the week offset earlier losses
After quite a few ups and downs during the course of the week, US stocks ended almost in an unchanged fashion for the week that ended on Friday, 26 June, 2009. Stocks had kicked of the week on a weak note but gains in the later part of the week offset those losses. Economic reports, corporate news and the Federal Open Market Committee meeting details dominated the week.
The Dow Jones Industrial Average lost 101.34 points (1.2%) for the week to end at 8,438.39. Tech - heavy Nasdaq gained 10.75 (0.6%) to end at 1,838.22. S&P 500 lost 2.33 (0.3%) to end at 918.9. Energy and financials sectors were the main laggards for the week.
The week started with the World Bank report that revised down global growth forecast in 2009 from - 1.7% to - 2.9%. As per the report, US economy is expected to contract deeper by - 3.0%, down from - 2.4%. Euro zone is expected to contract by - 4.5%, down from - 2.7% while Japan is expected to contract by - 6.8%, down from - 5.3%. This soured market sentiments since the very start of the week.
The FOMC left the benchmark rates unchanged (fed funds at range of 0.00% and 0.25%), noting that there is a slowdown in the economic contraction. But the committee also stated that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period of time.
The National Association of Realtors reported on Tuesday, 23 June, 2009 that falling prices boosted sales of pre-owned homes in May to the highest level since October, 2008. Existing-home sales in May rose 2.4% to a seasonally adjusted annual rate of 4.77 million. But new home sales were down 0.6% month-over-month versus an expected increase of 2.3%.
Among other economic data for the week, initial jobless claims for the week ended 13 June totaled 627,000, which was worse than expected and up from the previous week. Continuing claims crept up to 6.74 million. Though that is still off of its record high, it was worse-than-expected.
The Commerce Department reported during the week that the U.S. economy just went through its worst two quarters in more than 60 years, as businesses reduced their investments at the fastest pace since the Depression. Real GDP, the measure of the value of goods and services produced in the economy, fell at a 5.5% annual rate in the quarter after plunging at a 6.3% pace in the fourth quarter of 2008. A month ago, the government had estimated GDP fell at a 5.7% pace in the January-through-March quarter.
Among major corporate news of the week, Boeing pushed back the first flight date of its long anticipated and much delayed 787 Dreamliner. The stocks weighed heavily on the Dow for the whole week.
In the US market on Friday, 26 June, 2009, stocks spent the entire session struggling to find direction. Stocks attempted to reverse modest losses in the final minutes of trading, but the effort failed, which made for an anticlimactic finish to what was already a choppy and listless session.
The Dow Jones Industrial Average ended lower by 34 points at 8,438.39. The Nasdaq Composite Index, ended higher by 8.6 points at 1,838.22. S&P 500 ended lower by 1.3 points at 918.9.
Among economic reports for the day, The Commerce Department reported on Friday, 26 June, 2009 that U.S. personal incomes jumped 1.4% in May due to one-time stimulus checks, sending the savings rate to a 15-year high.
Incomes were boosted by one-time $250 checks sent to about 50 million Social Security beneficiaries as part of the Obama stimulus program. Excluding the one-time payments, disposable incomes rose 0.2%. Real disposable incomes (after taxes and inflation-adjusted) rose 1.6%. With the boost to incomes, the savings rate rose to 6.9%, the highest in 15 years. Consumer spending rose 0.3% in nominal terms, and 0.2% after adjusting for inflation, the largest gain since January.
Meanwhile, inflation measures rose 0.1% for the month. In the past, core inflation (excluding food and energy) is up 1.8%, while overall inflation is up just 0.1%, the lowest inflation rate in the 50-year history of the data.
In other earnings news, Accenture reported better-than-expected earnings for its latest quarter and raised its full-year outlook.
Large-cap tech showed relative strength, though its gains remained restrained. Nonetheless, it had helped the Nasdaq make its way into positive territory, while the Dow and S&P 500 mired in the red. Weakness, in the market was widespread. All 10 major sectors in the S&P 500 traded with losses. Their declines range from a fractional loss in the tech sector to a 1% loss in the energy sector.
Fresh demand concerns took crude prices at Nymex below $70 once again on Friday, 26 June, 2009. Prices fell on Friday as economic report showed that savings rate in US climbed to fifteen year high in US. Prices had crossed $70 mark a day earlier after militants attacked a key pipeline in Nigeria, the fifth largest oil exporter to the U.S. With Friday's drop, crude ended lower for the second consecutive week.
On Friday, crude-oil futures for light sweet crude for July delivery closed at $69.16/barrel (lower by $1.07 or 1.5%). For the week, crude ended lower by 1.2%.
In the currency market on Friday, the dollar was under renewed pressure after China's central bank reiterated a call to lessen the currency's role as the world's reserve currency. The dollar also slipped on speculation about global central banks' efforts to stabilize the economy that will boost demand for higher-yielding assets. The dollar index, which measures the strength of the dollar against a basket of six other currencies, fell almost 0.6%.
For the year 2009, Dow is down by 3.9%. The Nasdaq and S&P 500 are up by 16.6% and 1.7% respectively.
For the coming week, there are a few notable economic releases. U.S. stocks face a busy schedule of economic reports next week packed into four days because of the July 4th holiday. The key June employment report, along with manufacturing and housing data, will be the main items of the week. Markets will be closed on Friday, 3 July, 2009, to mark the Independence Day holiday the following day.
Daily News Roundup - June 29 2009
Sun Pharma to revise the revenue guidance for 2009-10 as the company was not sure when its US subsidiary, Caraco Pharmaceuticals, would be able to meet the regulatory standards of the US FDA. (BS)
India Cements plans to invest around Rs15bn over the next two years for setting up a greenfield project in Rajasthan, power plants in Tamil Nadu and Andhra Pradesh and acquiring a coal mine abroad. (BS)
B K Birla group is looking at raising its stake to more than 40% within the next three years in all the group companies where the promoters’ holding is around 26-27%. (BS)
Tata Motors Jaguar to unveil a super premium XJ sedan on July 09. (BS)
Wockhardt enters into an agreement with Vetoquinol, France to divest the animal health division. (BS)
Allahabad Bank reduces benchmark lending rates by 25bps from 12.25% to 12 %. (ET)
United Spirits may look at QIP, stake sale in W&M.(DNA)
State Bank of India reduces the interest rate on car loans to 8% for the first year.(BL)
Bharti Airtel’s proposed marriage with MTN has drawn the attention of the finance ministry, which is urgently seeking details of the proposed transaction.(BL)
Vjay Mallya, the UB group chairman, has reached out to Abu Dhabi's Al-Nahyan royal family for a possible investment in the debt-laden Kingfisher Airlines. (ET)
BIG TV, a pay-TV company owned by Reliance Communications, is in advanced talks with PE firms Carlyle Group and Providence Equity to sell a minority stake and raise capital. (ET)
Max India plans to raise equity funds of about Rs5bn in the next six months to part finance its planned investments in its insurance subsidiary.(BL)
GAIL plans two pipeline projects.(BL)
NTPC eyes takeover of ailing SEB stations.(BL)
Banks to provide Rs5bn to revive Wockhardt Pharma, while the promoters have agreed to bring in Rs7bn over three years. (ET)
Aditya Birla Group chairman Kumar Mangalam Birla to take over the reins at Kesoram Industries. (ET)
Punj Lloyd to raise Rs15bn.(BL)
Kesoram Industries plans further capacity expansion.(BL)
GRUPO Mexico revises its offer to outbid Sterlite Industries. Grupo Mexico increased the cash component to US$1.46bn from US$1.3bn. (ET)
JSL plans Rs25bn debt recast.(DNA)
MCX SX applies for SEBI nod to launch interest rate futures.(BL)
Unitech closes the second round of QIP worth US$575mn. (ET)
GE Shipping has taken up a US$1.2bn capex plan over the next three years. (ET)
Reliance Industries agrees to sell natural gas to NTPC’s power plants. (ET)
Adani Power, part of the diversified Adani Group, to come with an IPO in the third week of July to raise Rs22bn. (ET)
Mahindra Holidays IPO was subscribed 9.74 times. (ET)
Renuka Sugar raised US$100mn via the QIP route. (ET)
Rashtriya Ispat Nigam to have a controlling stake in the Bird Group of companies, including OMDC. (BS)
Suzlon looks to delist REpower.(DNA)
RPG Enterprises flagship CESC, Reliance Infrastructure and Mumbai-based Glodyne Technoserve are in the race to be franchise power distributor in Patna.(BL)
DLF and Unitech to try and re-start some of their projects in Mumbai. (ET)
JSL plans to raise Rs5bn via right issue. (ET)
Foreign exchange reserves increased by US$8mn to US$264bn for the week ended June 19.(BL)
Life insurers’ fresh premium collections decline in May.(BL)
Housing sector sales rise as much as 25-30% since April. (BS)
Gas production in May up 18%; crude oil dips.(BL)
Centre to soon hike petrol and diesel prices as prices for crude oil have gone up internationally, said petroleum minister Murli Deora. (ET)
The government proposes Rs430mn as entry fee for allowing internet service providers the right to offer domestic phone services using computers. (ET)
DoT may peg entry fee for telecom licence at Rs450mn.(BL)
IT companies eye’s government Rs400bn tech spend in next 5 yrs. (ET)
Cement prices are expected to dip by Rs3-5 on lower demand and excess supply. (ET)
The power ministry plans to award three more ultra-mega power projects of 4,000mw in the current financial year. (ET)
GST may miss its April 2010 deadline. (ET)
B-day caution may check the bulls
An optimist is a person who sees a green light everywhere, while a pessimist sees only the red stoplight. . . The truly wise person is colorblind.
It wouldn’t be a bad idea to turn colour blind for a few days in the run up to the Budget. But, with the southwest monsoon gradually picking up, the so-called green shoots theory might gain further credence. A good rainfall will go a long way in enhancing the growth prospects for the Indian economy. The icing on the cake will be a balanced budget with equal emphasis on social welfare programmes and crucial economic reforms. As of now, nobody’s willing to bet what the broad contours of the budget will be.
Friday’s big gains were a bit of a surprise, thanks partly to a shift in the way NSE calculates market-cap and weightages of 50 Nifty stocks. Net buying from both, foreign and local funds was pretty good. Today, we expect the market to open on a cautious note due to a subdued trend in Asian markets. Given the big event risk, we would advice you to exercise restraint and take a call only after the budget.
Hold all your cards close to chest till next Monday when the Union Budget is out. This seems to be the right approach if one goes by the recent experience during the Lok Sabha elections. Stunned by the surprisingly decisive verdict for the UPA, the market witnessed euphoric, but historic rally. Of late there is a feeling that the post-election celebration was a little premature. As a result, the market has struggled for direction amid uncertainty over Government’s policy roadmap and anxiety over the global situation.
Results Today: Ajmera Realty, Anant Raj Industries, Apollo Hospitals, Dredging Corporation, Gujarat Alkalies, Orchid Chemicals and TV18.
US stock benchmarks closed mixed on Friday, with the technology space clearly outperforming the blue chips and the broader market. The Standard & Poor's 500 Index suffered the first two-week decline since March. The Dow Jones Industrial Average too closed lower for the second week in a row. The Nasdaq Composite index managed to post slim gains for the week.
Shares of Exxon Mobil and Tesoro declined as crude oil futures lost 1.5% to USUS$69.16 per barrel. The dollar dropped after China's central bank reiterated a call for a new global reserve currency. Shares of Palm and Accenture rose after their earnings exceeded expectations and Micron Technology dropped on a wider loss.
Wall Street was subdued after the personal savings rate climbed to 6.9% in May, the highest level since December 1993. This fueled concerns that consumers in the world's largest economy were turning cautious. Any slowdown in consumer spending in the US could adversely affect the nascent economic recovery process.
The Dow fell 34 points, or 0.4% to end at 8438.39, while the S&P 500 index finished virtually unchanged at 918.90 and the Nasdaq gained 8 points, or 0.5% to 1838.22.
For the week, the Dow industrial average lost 101.34 points, or 1.2%. With two session left in the second quarter, the Dow is up 829.47 points, or 11%, which would be its first up quarter in over a year and a half.
The S&P 500 lost 2.33 points, or 0.3% during the week. So far for the second quarter, the S&P 500 is up 121.03 points, or 15%. The Nasdaq rose 10.75 points, or 0.6%, for the week, now up 14 of the last 16 weeks.
For the second quarter, the Nasdaq has gained 309.63 points, or 20%. If it can hold the gain it will be the tech-laden index's highest quarterly percentage advance in six years.
US stocks had bounced back on Thursday, after sliding for most of the week. But they failed to capitalise on those gains on Friday.
The S&P 500 is up by 40% since early March. Bets that the US economy is closer to stabilising gave the rally some fuel, but a mixed batch of recent reports has caused worries that the stock market advance has run way ahead of any material change in fundamentals.
The growing caution gained currency after a government report showed that personal income surged, but so did savings, as consumers decided to tighten their purse strings rather than spend. Consumer spending accounts for two-thirds of the US economy.
May personal income rose 1.4%, the Commerce Department reported. Economists had forecast a gain of just 0.3% after climbing a revised 0.7% in April. But the gain in personal spending was more modest, the government said. Spending rose 0.3% in May, in line with forecasts, after falling 0.1% in April.
Personal saving as a percentage of income rose to 6.9% in May from 5.6% in April. The rate was the highest level in more than 15 years. The PCE deflator, the report's inflation component, showed that pricing pressures remain benign. PCE rose 0.1% after rising 0.3% in April, versus forecasts for a rise of 0.2%.
A separate report from the University of Michigan showed that consumer sentiment rose to 70.8 in June from an earlier reading of 68.7. Economists had forecast that it would increase to 69.
KB Home reported a narrower fiscal second-quarter loss that was worse than expected. The homebuilder also said that it sees signs that certain negative trends are moderating. Shares plunged 9%.
Homebuilder Lennar reported a big drop in fiscal second-quarter sales and earnings versus a year ago, but said that new home sales and orders picked up versus the first quarter.
In other company news, Palm reported a narrower-than-expected fiscal fourth-quarter loss late on Thursday, due partly to strong demand for its new Pre smartphone. Shares rallied nearly 16%.
Gold touched a two-week high and marked its first weekly gain since May as the dollar weakened and LIBOR touched a record low in London, increasing the metal’s appeal as an alternative investment.
The three-month London interbank offered rate, or LIBOR, slipped below 0.6% for the first time. The dollar-based rate peaked at 4.82% on Oct. 10 in the aftermath of the Lehman Brothers fiasco.
Gold futures for August delivery rose US$1.50, or 0.2%, to US$941 an ounce on the New York Mercantile Exchange’s Comex division, after earlier touching US$949, the highest since June 12. The 0.5% weekly gain was the first since May 29. The four-day rally was the longest in five weeks.
In London, bullion for immediate delivery gained US$1.34, or 0.1%, to US$940.59 an ounce at 8:17 p.m. local time. The metal slipped to US$942 an ounce in the afternoon fixing in London, the price used by some mining companies to sell their output, from US$943 this morning.
Crude oil and gasoline tumbled after the government said the savings rate climbed to the highest level in more than 15 years and as US stocks slipped. US light crude oil for August delivery settled down US$1.07 to US$69.16 a barrel on the New York Mercantile Exchange.
The August contract declined 1.2% this week. Oil prices in New York have increased 55% this year. Gasoline for July delivery declined 2.42 cents, or 1.3%, to end the session at US$1.8741 a gallon in New York.
In currency trading, the dollar fell versus the euro and the yen. The dollar dropped against most of its major counterparts after China repeated its call for a supranational currency delinked from sovereign nations.
The greenback was headed for its biggest weekly loss against the euro in four weeks after the People’s Bank of China said the IMF should manage more of members’ foreign-exchange reserves.
Treasury prices were little changed, with the yield on the benchmark 10-year note at 3.54%, nearly unchanged from Thursday. The yield touched 3.492, the lowest level since June 1. Treasuries rose for a second day amid easing worries over inflation, bolstering expectations that the Fed will keep rates near zero through the year.
A rally in Treasuries this week pushed the yield on the benchmark 10-year note down the most since December, lowering expected returns. The PCE deflator, a price gauge tied to consumer spending patterns, registered the smallest gain since records began in 1959.
The BSE Sensex surged 419 points or 3% to end at 14,764 after touching a high of 14,782 and a low of 14,374. The index had opened at 14,374 against the previous close of 14,346.
The NSE Nifty surged 134 points or 3.1% to shut shop at 4,375.
Asia markets ended in the green, the Hang Seng index gained 2% at 18,600, Australia's S&P/ASX ended higher by 1.2% to 3,903. Nikkei index added 1% at 9,877.
Elsewhere in the Europe, stocks were trading with gains. The FTSE index was up 0.6% at 4,272. The DAX index was up 0.6% at 4,825. CAC 40 index gained 0.3% at 3,168.
Coming back to India, among the BSE Sectoral indices BSE Bankex index was the top gainer surging 4.4%, followed by the BSE Capital Goods index up 4.3%, BSE Consumer Durable index up 3.5% and BSE IT index up 3.2%.
Even the BSE Mid-Cap index ended higher by 2.3% and BSE Small-Cap index added 2%.
However, the BSE Phrama index slipped 1.5%.
In the Sensex, the major gainers were, ICICI Bank, Sterlite, L&T, TCS, Infosys, RCom, Reliance Industries, BHEL, Maruti and SBI.
On the other hand, major losers were Sun Pharma, Ranbaxy, Tata Steel and M&M.
Among the big gainers in the broader market were IVRCL Infra, Sintex Industries, Torrent Power, LITL, IFCI, Nagarjuna Const and Akruty City.
Outside the frontline indices, the top losers included Lupin, TTML, Corp Bank, Moser Baer, Idea and EKC.
Shares of Sun Pharma slumped by over 12% after reports stated that the U.S. authorities seized generic drugs made by Caraco Pharmaceutical Laboratories Ltd (US subsidiary of Sun Pharma). They are investigating potential claims against Caraco Pharma, concerning possible securities violations related to public statements made by the company. Sun Pharmaceutical owns 76% of Caraco’s stock.
According to reports, the seizure was on account of Caraco's constant failure to meet the FDA's current Good Manufacturing Practice requirements, which assure the quality of manufactured drugs.
Through the seizure, it seeks to immediately stop the company from further distributing drugs until there is assurance that the company complies with good manufacturing requirements.
Shares of J Kumar were locked at 5% upper circuit to Rs99.90 after the company announced that it won two orders worth Rs85.6mn. The scrip touched an intra-day high of Rs99.9 and a low of Rs98.3 and recorded volumes of over 18,000 shares on NSE.
Shares of Areva T&D advanced by 2% to Rs339 after the company announced that it secured Rs12bn order from JSPL for a power project. The scrip touched an intra-day high of Rs351 and a low of Rs335 and recorded volumes of over 0.3mn shares on BSE.
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