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Tuesday, June 30, 2009

Automobiles, Tata Motors, Suzlon Energy, Glenmark Pharmaceuticals, India Cements

Automobiles, Tata Motors, Suzlon Energy, Glenmark Pharmaceuticals, India Cements

FY2010 Union Budget,Hindalco, Havells India, Unitech

FY2010 Union Budget,Hindalco, Havells India, Unitech

Turnover surges

Tata Steel July 2009 futures at discount

Nifty July 2009 futures were at 4302.25, at a premium of 11.15 points as compared to the spot closing of 4291.10. Turnover in NSE's futures & options (F&O) segment surged to Rs 52,352.52 crore from Rs 47,588.96 crore on Monday, 29 June 2009.

Tata Steel July 2009 futures were at discount at 375.10 compared to the spot closing of 390.65.

Reliance Industries July 2009 futures were at premium at 2,036.50 compared to the spot closing of 2,023.40.

Larsen & Toubro July 2009 futures were at premium at 1,576.75 compared to the spot closing of 1,567.80.

In the cash market, the S&P CNX Nifty lost 99.85 points or 2.27% at 4291.10.

Asian markets end mixed

Shanghai, Sensex closed lower while Nikkei, NZX 50 turned higher

Stock market in Asian region closed mixed on Tuesday, 30 June 2009; on optimism a recovery in the global economy will lift earnings for producers of commodities and electronics. Risk appetite was on the rise again, after the DJIA rose 1.1% and front-month Nymex crude futures settled at their highest point in more than two weeks.

On Wall Street, stocks ended day on a strong note. Markets started the day in the green during the day but slipped in the red soon for a very brief period of time. But stocks recovered fast and indices traded in the green since then within a limited boundary. There was a lack of clear leadership, which checked stocks from moving higher.

The Dow Jones Industrial Average ended higher by 90.5 points at 8,528. The Nasdaq Composite Index, ended higher by 5.8 points at 1,844.22. S&P 500 ended higher by 8.2 points at 927.

In the commodity market, crude oil rose to the highest in eight months, set for its biggest quarterly gain since 1990, as the U.S. dollar declined and militant attacks in Nigeria curbed supply from Africa’s largest producer.

According to reports, Nigerian militants said they attacked an oil platform run by Royal Dutch Shell. This marks the latest in a series of claimed incursions on crude networks in the Niger Delta.

In other oil news, this morning the International Energy Agency rewrote its earlier demand projections, saying instead that global demand for crude oil may be lower than previously thought in the coming years because of the economic slowdown.

The International Energy Agency’s Medium-Term Oil Market Report yesterday cut oil- consumption estimates for every year through 2013 by about 3 million barrels a day. Consumption will average 86.76 million barrels a day in 2012, the first year demand will rise above 2008’s level of 85.76 million, the IEA said.

Crude oil for August delivery gained as much as $1.89 to $73.38 a barrel on the New York Mercantile Exchange, the highest since Oct. 21. It was at $72.23 a barrel at 9:41 a.m. in London.

Brent crude oil for August settlement rose as much as $2.51, or 3.5%, to $73.50 a barrel on London’s ICE Futures Europe exchange and traded at $71.77 at 9:42 a.m. local time. Yesterday, it gained $2.07, or 3%, to $70.99 a barrel, the biggest gain since 4 June 2009.

Gold climbed above $940 an ounce in Asia, heading for a third quarterly increase, as the weakening dollar fueled demand for the precious metal as a store of value. Gold for immediate delivery gained 0.4% to $941.42 an ounce at 9:40 a.m. in Singapore, gaining for a third quarter.

In the currency market, the Japanese yen softened against major currencies on Tuesday. The Japanese currencies were quoted at 96.01 against the US dollar.

The Hong Kong dollar was trading at HK$ 7.7500 against the dollar. Actually the Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

In Sydney trade, the Australian dollar had another strong day, posting its best quarter against the greenback since at least 1985, as optimism the global slump is easing buoyed demand for higher-yielding assets. At the local close, the dollar was trading at $US0.8130, up 1.2 US cents - or 1.5 per cent - from Monday's close of $US0.8009.

In Wellington trades, the New Zealand dollar spent the last day of June treading water around US 65 cents, having regained much of the ground lost during the month.

An improvement in business sentiment in the latest National Bank Business Outlook survey released today made little impact on the kiwi. A net 6 percent of respondents in the June survey expect general business conditions to improve during the next 12 months, up 4 percentage points on May. Also today, the Reserve Bank of NZ said that inflation was not currently considered a threat to the economy, but could return to the fore when the global economy recovers. By its closing, the kiwi was at US 65.16 cents, up from US 64.35 cents late yesterday afternoon.

The South Korean won ended at 1,273.9 won against the greenback, up 11.9 won from Monday's close, as offshore investors increased their holdings of Seoul stocks.

The Taiwan dollar strengthened against the greenback. The Taiwan dollar gained against the US dollar as it was trading higher at NT$ 32.8180, up by NT$ 0.1250 from Monday’s close of NT$32.9430.

Coming back in equities, Asian stock markets were broadly higher, taking their cue from gains on Wall Street with energy stocks buoyed by a continued rise in crude oil prices. In Australia, retailing stocks were helped by improved profit guidance from David Jones.

In Japan, the stock index spurted with broad based gains across thirty-three sectors, on the back of strong gains on Wall Street and Europe and rebound in commodities prices, buoyed by growing hopes that the worst of the global economic slump may be over. The benchmark Nikkei spurted 22.8% for the quarter ended June 30, 2009.

At the closing bell, the Nikkei 225 Stock Average index spurted 174.97 points, or 1.8% to 9,958.44, while the broader Topix index surged 14.44 points, or 1.6% to 930. The benchmark Nikkei 225 index has gained 4.6% for the month ended June, while it ballooned 22.8% in during April-June quarter.

On the economic front, the Ministry of Internal Affairs and Communications said in a monthly report that Japan’s unemployment rate rose to 5.2% in May. The total number of jobless people climbed by 770,000 from a year earlier to 3.47 million.

In Mainland China, stock index reversed early gains to finish the session lower, snapping four days of winning streak, as investors prompted for selling for profit after the key index hit a 12-month high and concern this year’s rally has outpaced earnings prospects and end of first half 2009. The benchmark Shanghai Composite finish April-June quarter 25% higher, and 63% in the first half 2009, buoyed by growing hopes that the worst of the global economic slump may be over.

The Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, fell 0.54%, or 15.95 points, to 2,959.36, while the Shenzhen Component Index dumped 0.34%, or 38.90 points, to 11,566.61.

The Shanghai Composite has rallied 12.4% for the month ended June, meanwhile spurted 25% in April-June quarter and 63% this year on optimism Premier Wen Jiabao’s 4 trillion yuan ($586 billion) of stimulus plan and record bank lending will revive growth in the world’s third-largest economy.

On the economic front, the National Development and Reform Commission said China raised state-set gasoline and diesel prices to reflect rising global crude costs. The retail price of gasoline rose by 8.6% and that of diesel by 9.6%

The National Development and Reform Commission said that China might not continue purchases of industrial metals for strategic reserves after prices rebounded.

In Hong Kong, stocks declined as the Hang Seng Index, the benchmark after touching the intraday low of 18,364.81 points, the blue-chip Hang Seng Index fell 149.78 points or 0.81% to close at 18,378.73. The Hang Seng China Enterprise Index, which tracks the overall performance of 43 Chinese mainland state-owned enterprises on the Hong Kong Stock Exchange, slid 24.96 points or 0.23% to 10,962.61 points.

In Australia, the stock market surged on the last day of the month on the back of a strong gains on Wall Street and Europe and as energy stocks were buoyed by higher crude oil prices. Miners, energy, and materials led the rally on demand for resources shares, while financials and properties stocks performed strongly. Consumer discretionary was the best performer on improved profit guidance from David Jones.

At the closing bell, the benchmark S&P/ASX200 index surged 68 points, or 1.75%, to 3,954.9, meanwhile the broader All Ordinaries spurted 65.1 points, or 1.68%, to 3,947.8.

The benchmark S&P/ASX200 index gained 3.6% in June, but tumbled 24.25 in the financial year ended June 30, 2009. Meanwhile, the broader All ordinaries rose 3.5% in June, but fell 26% in the financial year ended June 30, 2009.

On the economic front, the Australian bureau of statistic said in a repot that new home sales fell 5.7% in May from the previous month. This was the first drop following four consecutive months of increases as Western Australia witnessed the largest fall of all the states, with a 13.5% slump.

In New Zealand, equity market ended the day in the positive terrain although the share market started the day with a small decline, led by a fall in Telecom. The stock market registered the second consecutive session in the green. The NZX50 ended up 0.76% or 20.99 points to 2796.10. The NZX 15 advanced 0.89% or 45.49 points to close at 5159.28.

On the economic front, New Zealand’s business confidence is improving, but the continuing recession means the economy is still contracting albeit at a slower pace according to National Bank's latest survey of business confidence. The survey shows a net 6 percent of respondents expected general business conditions to improve in the next 12 months. That was up 4 percentage points from the last survey in May. The construction sector, which has been deeply down in the dumps, is now expecting better times ahead. A net 46 percent of firms expect an improvement in conditions- the highest reading in a decade.

Meanwhile, New Zealand central bank in its annual statement of intent, said that the New Zealand economy had been under pressure from the international financial crisis, global recession and weak domestic spending. The threat of inflation has eased, but it may become a problem again once global markets stabilise, the Reserve Bank said.

In South Korea, stocks closed higher as investor sentiment was underpinned by overnight gains in U.S. markets amid rising prospects for an economic recovery. The benchmark Korea Composite Stock Price Index (KOSPI) advanced 1.62 points to 1,390.07.

In Taiwan, stock market closed up, logging the best quarterly gain in eight years as technology sector stocks jumped on expectations of more orders from China. The main Taiex share index gave up yesterday losses as the Taiex index added 41.01 points or 0.64%, closing the day at 6432.16.

On the economic front, Taiwan’s manufacturers and traders received orders totaling US$25.17 billion in May of this year, up by US$100 million from a month earlier. According to the Ministry of Economic Affairs (MOEA) compared to the same month of last year, the order value tumbled by US$6.3 billion or 20.14%. In January of this year the export orders stood at US$17.67 billion, surging to US$20.12 billion in February, growing rapidly to US$23.94 billion in March and US$25.13 billion in April, and edging up to US$25.17 billion in May.

In May alone, the export orders received from Europe dropped an annual 28.01% in value and down by 10.49% from a month earlier, implying a gloomy business climate in Europe. Likewise, the orders from the United States dipped an annual 17.35%.

Influenced by the downturn, many countries have recently hesitated to launch investments. As a result, Taiwan witnessed a sizable annual fall of 44.23% and 33.13% in orders for machinery and basic metals & related products, respectively, in May; while orders for electronic products shrank by 11.33% and those for information technology (IT) and telecom products reduced by 11.9%.

In other economic news, according to the Investment Commission under the Ministry of Economic Affairs, Taiwan saw investments in China dive 65% year-on-year in the first five months of this year, affected by the global recession.

Also Taiwan posted negative growth in incoming investments by overseas Chinese and foreigners as well as outward investments. The Investment Commission’s tallies show the applications by Taiwanese businesspersons to invest in China has been rising starting in June as the Chinese government has offered a flurry of incentives, including subsidizing sales of home appliances in rural region and the launch of Haixi Economic Special Zone, to attract investors from abroad.

An official at the Investment Commission attributed the drop in applications for investing in China to the slump in export orders landed by domestic firms. Domestic firms invested US$1.3 billion in 65 cases in China in the first five months of this year. Operators in electronic components, electronics and computers, retail and wholesale, electronic equipment manufacturing and machinery are the leading investors in China, all of whom cut back in such investments.

The Investment Commission approved 86 investment cases from overseas Chinese and foreigners amounting to US$160 million in May alone, with cumulative investments totaling US$1.67 billion in the first fie months of this year, down 45% from a year before. Taiwanese businesspersons submitted 96 cases, amounting to US$940 million, of overseas investments in the first five months of this year, down 56% year-on-year.

At the same time, Chinese investors will be able to apply for investments in Taiwan from 1 July 2009, following the publication of permitted investment items and associated measures by the Executive Yuan i.e. the Cabinet, scheduled today.

In other economic news, the central bank here showed that due to fierce competition in the home mortgage market, the average home loan rate offered by Taiwan’s five state-linked banks stood at 1.853% per annum in May, the lowest in two months ever recorded.

The five banks are the Bank of Taiwan, Land Bank of Taiwan, Taiwan Cooperative Bank, Hua Nan Commercial Bank and First Commercial Bank. In May the said five banks lent new home loans totaling NT$460.8 billion (US$13.96 billion at US$1 = NT$33), down by NT$130 billion (US$3.94 billion) from a month earlier, with an average rate up 0.071 of a percentage point to 1.536%.

Of all the new loans in May, the home loans posted a slight monthly drop of NT$1.312 billion (US$39.76 million) to NT$41.095 billion (US$1.25 billion) while short-term corporate loans tumbled by NT$115.8 billion (US$3.51 billion).

The low interest rate has helped raise idle funds in the financial market and therefore the central bank currently has seen its certificates of deposit hit a new high of nearly NT$5 trillion (US$151.52 billion).

In Philippines, the stock market closed lower, bucking the trend in the regional markets, which are trading higher. Profit booking activities by investors dragged the composite index lower. Moreover, heavy losses registered by the key heavy weight stocks also brought the benchmark index under pressure. The PSEi closed lower despite the positive news on the economic facade. The benchmark index PSEi plummeted 1.21% or 30.06 points to 2,437.99, while the All Shares index went down 1% or 15.87 points to 1,566.47.

In India, the BSE 30-share Sensex closed down 291.90 points or 1.97% to 14,493.84 while the 50-unit S&P CNX Nifty was ended lower by 99.85 points or 2.27% to 4291.10.

Elsewhere, Malaysia's Kula Lumpur Composite index went down 0.06% or 0.60 points to 1075.24 while Indonesia’s Jakarta composite index ended the day lower at 2026.78.

In other regional market, European shares were flat on the last day of a strong second quarter, with gains for banks and healthcare stocks offsetting losses for food producers. Of regional equity markets, the German DAX index edged down 0.52% to 4,860, the French CAC-40 index slipped 0.39% to 3,181 and the FTSE 100 index dipped 0.25% to 4,284.

Looking ahead, markets will look into conference board consumer confidence in US, which is expected to improve further in June. Chicago PMI is expected to rise further. Canadian GDP will be another focus in the US sessio

Sensex ends weak; Realty tumbles

The sensitive share index, Sensex wrapped the day on a weak note led by frontliners-DLF, Tata Motors and Jaiprakash Associates. Even broader markets hurt the sentiment. The other major draggers were realty, metal, power, capital goods and banking stocks. It opened with a gain of 45.23 points, at 14,830.97 on Tuesday on positive global cues. After opening positive, Sensex pared all its gains and fell into the negative terrain on profit booking amid volatility. The markets continued to slip further in the red as cautious traders booked profits across the board ahead of the Union Budget. Fears of low rainfall also weighed on sentiments. Finally it ended sharply lower due to subdued European market and heavy selling pressure witnessed in heavyweights.

Secondline stocks also supported the fall. Midcap and Smallcap index plunged 2.94% and 2.51% respectively.

Among the sectoral indices, BSE Realty plummeted 7.42%, Metal, Power, Capital goods, plunged over 3% each, Bankex and Oil & gas dropped over 2% each, Auto and PSU declined over 1% each.

European stocks fell as gains by commodity producers offset the biggest contraction in the UK economy since 1958. UK`s benchmark index FTSE 100 fell 5.20 points, or 0.12%, to trade at 4,288.83. French benchmark index CAC 40 declined 3.51 points, or 0.11%, to trade at 3,190.17 and Germany`s benchmark index DAX fell 1.88 points, or 0.04%, to trade at 4,883.21. (4:20 p.m., IST)

Asian stocks ended in negative. The regional benchmark index capped a record quarterly gain, on optimism a recovery in the global economy will lift earnings for producers of commodities and electronics. Japanese benchmark index Nikkei fell 174.97 points, or 1.79%, to end at 9,958.44.Hong Kong`s Hang Seng index lost 149.78 points, or 0.81%, to close at 18,378.73 and China`s Shanghai Composite advanced 15.95 points, or 0.54%, to settle at 2,959.36.

The Sensex ended the day with a loss of 291.90 points, or 1.97% at 14,493.84 after touching a high of 14,907.48 and a low of 14,420.41. The broad-based NSE Nifty declined 99.85 points, or 2.27% at 4,291.10 after hitting a high of 4,426.75 and a low of 4,267.35.

Major gainers in the 30-share index were Hero Honda Motors (1.08%), Tata Consultancy Services (0.98%), and Hindustan Unilever (0.36%).

On the other hand, DLF (8.05%), Tata Motors (7.23%), Jaiprakash Associates (7.22%), Reliance Capital (6.18%), Sterlite Industries (India) (6.01%), and Reliance Energy (5.53%) were the major losers in the Sensex.

Overall market breadth was sharply negative. Out of the total 2,674 stocks traded at BSE, 760 advanced, 1,841 declined while 73 remained unchanged.

BSE Bulk Deals to Watch - June 30 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
30/6/2009 513149 ACROW INDIA VINOD SHARES LTD B 5000 122.75
30/6/2009 513149 ACROW INDIA VINOD SHARES LTD S 5000 122.75
30/6/2009 519183 ADF FOODS LT SUNDARAM MUTUAL FUND S 120673 31.87
30/6/2009 531223 ANJANI SYNTH MANGILAL B. BURAD B 92263 32.82
30/6/2009 531223 ANJANI SYNTH MANGILAL B. BURAD S 92756 32.65
30/6/2009 526652 CALS REF LTD JMP SECURITIES PVT LTD S 40398489 0.81
30/6/2009 507833 COMPUTER POI EPOCH MERCANTILES PVT LTD B 122117 6.02
30/6/2009 532707 DYNEMIC PRO DHAVAL AMRISH SHAH B 80000 23.75
30/6/2009 532022 FILAT FASH MUKESH DHIRAJLAL MAHETALIA B 45999 97.77
30/6/2009 532022 FILAT FASH AADESH PVT LTD B 34400 97.72
30/6/2009 532022 FILAT FASH MUKESH DHIRAJLAL MAHETALIA S 45999 97.99
30/6/2009 531137 GEMSTONE INV MAHENDRA SHAH B 25000 22.50
30/6/2009 531137 GEMSTONE INV HEMANT MADHUSUDAN SHETH S 55000 22.59
30/6/2009 506109 GENE INT COR TAIB BANK A/C TSML B 150000 69.50
30/6/2009 506109 GENE INT COR IMAGE SECURITIES LTD S 98236 69.50
30/6/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 81986 48.77
30/6/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 118336 48.31
30/6/2009 531731 KUVAM INTL MEETA NAVIN RATHOD B 20000 7.93
30/6/2009 531731 KUVAM INTL SAHIL SINGLA S 47000 7.93
30/6/2009 531731 KUVAM INTL SANJEEV KUMAR GUTPA S 21100 7.93
30/6/2009 531731 KUVAM INTL RAJINDER BANSAL S 21600 7.93
30/6/2009 590011 MOVING PICTU-PMS AZMATULLAH MD B 40135 4.75
30/6/2009 524689 PARENTER DRU SANJAY JAGDISH PODDAR B 41550 71.93
30/6/2009 531952 RIBA TEXTILE HARISH RATILAL SHAH B 35000 57.35
30/6/2009 533083 RISHABHDEV DEEPAK SHANTILAL CHHEDA B 104591 26.18
30/6/2009 533083 RISHABHDEV AMIT MANILAL GALA B 112431 26.02
30/6/2009 533083 RISHABHDEV VAIBHAV DOSHI B 100015 26.95
30/6/2009 533083 RISHABHDEV Naman Securities & Finance Pvt. Ltd. B 303030 25.70
30/6/2009 533083 RISHABHDEV JMP SECURITIES PVT LTD B 90872 25.34
30/6/2009 533083 RISHABHDEV AMIT SAHITA FINANCE PVT. LTD. B 163592 26.09
30/6/2009 533083 RISHABHDEV DEEPAK SHANTILAL CHHEDA S 104591 26.47
30/6/2009 533083 RISHABHDEV AMIT MANILAL GALA S 112431 26.24
30/6/2009 533083 RISHABHDEV VAIBHAV DOSHI S 100015 26.30
30/6/2009 533083 RISHABHDEV Naman Securities & Finance Pvt. Ltd. S 303030 25.71
30/6/2009 533083 RISHABHDEV JMP SECURITIES PVT LTD S 143525 26.87
30/6/2009 533083 RISHABHDEV AMIT SAHITA FINANCE PVT. LTD. S 163592 26.03
30/6/2009 531898 SANGUINE MD ARCHITA JIGNESH SHAH B 200000 4.93
30/6/2009 531898 SANGUINE MD NAINESH N JADAV S 116000 5.38
30/6/2009 531898 SANGUINE MD HITEN BHUPATRAI MEHTA S 79935 4.93
30/6/2009 531898 SANGUINE MD KISHORE Y S 78173 4.93
30/6/2009 524540 SECUN HEALTH VISHU ENTERPRISE B 19010 40.24
30/6/2009 524540 SECUN HEALTH DHIRAJLAL V SANGHVI HUF B 24840 40.24
30/6/2009 524540 SECUN HEALTH SETU SECURITIES PVT LTD S 27000 40.25
30/6/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 64202 58.87
30/6/2009 526133 SUPERTEX IND SHAILESH SOMABHAI PATEL S 55000 58.77
30/6/2009 532432 UNITD SPR SHAW WALLACE AND COMPANY LIMITED S 3098553 880.00
30/6/2009 531874 VENUS VENT ABHAY NARAIN GUPTA B 50000 39.05
30/6/2009 531364 ZENU INFOTEC SANTOSH GANGARAM MOHITE S 50000 7.50

NSE Bulk Deals to Watch - June 30 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
30-JUN-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,341539,929.71,-
30-JUN-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,BUY,330237,937.49,-
30-JUN-2009,CLUTCHAUTO,Clutch Auto Limited,FALCON JERSY PVT. LTD.,BUY,1,28.90,-
30-JUN-2009,CLUTCHAUTO,Clutch Auto Limited,RAVINDER KUMAR BATRA,BUY,87601,28.51,-
30-JUN-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,BUY,111650,3793.34,-
30-JUN-2009,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,BUY,1499072,244.55,-
30-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,9977132,21.36,-
30-JUN-2009,MCDOWELL-N,United Spirits Limited,CAPITAL INTERNATIONAL EMRG MARKETS FUND 0591,BUY,1060000,879.88,-
30-JUN-2009,MCDOWELL-N,United Spirits Limited,DWS INVESTMENT DWS INVEST BRIC PLUS,BUY,1039598,880.00,-
30-JUN-2009,MCDOWELL-N,United Spirits Limited,EMERGING MARKETS GROWTH FUND INC 0015,BUY,2140900,879.88,-
30-JUN-2009,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD.,BUY,2242246,41.29,-
30-JUN-2009,RUCHINFRA,Ruchi Infrastructure Ltd.,RUCHI SOYA INDUSTRIES LTD.,BUY,2000000,31.50,-
30-JUN-2009,SUZLON,Suzlon Energy Limited,GENUINE STOCK BROKERS PVT LTD,BUY,7860892,108.89,-
30-JUN-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,341139,930.06,-
30-JUN-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,SELL,332637,937.82,-
30-JUN-2009,CLUTCHAUTO,Clutch Auto Limited,FALCON JERSY PVT. LTD.,SELL,86001,28.51,-
30-JUN-2009,CLUTCHAUTO,Clutch Auto Limited,RAVINDER KUMAR BATRA,SELL,1,28.20,-
30-JUN-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,SELL,111650,3795.58,-
30-JUN-2009,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,SELL,1499072,244.43,-
30-JUN-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,10007942,21.45,-
30-JUN-2009,MCDOWELL-N,United Spirits Limited,SHAW WALLACE AND COMPANY LTD,SELL,7184000,880.06,-
30-JUN-2009,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD.,SELL,2242246,41.32,-
30-JUN-2009,RUCHINFRA,Ruchi Infrastructure Ltd.,SARVESH SHAHRA,SELL,1494435,31.50,-
30-JUN-2009,SUZLON,Suzlon Energy Limited,GENUINE STOCK BROKERS PVT LTD,SELL,7860892,108.92,-

Post Session Commentary - June 30 2009

Indian market pared opening gains and plunged sharply lower to close in red territory on profit taking led by report regarding slowdown in infrastructure growth. Moreover, the output of India''s infrastructure sector grew 2.8% in May from 3.1% in the same month last year, and this growth is slower than an upwardly revised 5% in April. Besides, investors were cautious ahead of Union Budget next week. BSE Sensex ended below 14,500 level and NSE Nifty below 4,300 mark.

The market opened above the previous session’s closing tracking positive cues from the global markets. Asian markets were in green in early trading and the US Markets ended higher on Monday as investors showed confidence and bid stocks up in broad-based fashion. The energy stocks remained in focus bolstered by higher oil prices. However, domestic market lost ground soon after start and exhibited volatility. The benchmark indices continued to extend losses and declined further due to sluggish infrastructure growth. In addition, investors’ booked profits also on uncertainties regarding Union Budget next week. Eventually, heavy sell off during the final trading led the market to close sharply lower. From the sectoral front, investors off-loaded position across sectors. Among those, most of the selling was witnessed in Realty, Metal, Power, Capital Goods, Bank, Oil & Gas, Pharma and Auto stocks. BSE Midcap and Smallcap stocks also followed the same trend.

Among the Sensex pack 27 stocks ended in red territory and 3 in green. The market breadth indicating the overall health of the market remained negative as 1849 stocks closed in red while 757 stocks closed in green and 74 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 291.90 points at 14,493.84 and NSE Nifty ended down by 99.85 points at 4,291.10. BSE Mid Caps closed with losses of 153.75 and 147.82 points at 5,076.34 and 5,740.04 respectively. The BSE Sensex touched intraday high of 14,907.48 and intraday low of 14,420.41.

Losers from the BSE Sensex pack are DLF Ltd (8.05%), Tata Motors (7.23%), JP Associates (7.22%), Msterlite Industries (6.01%), Reliance Infra (5.53%), RCom (5.49%), ICICI Bank (3.57%), ACC Ltd (3.16%), Reliance (2.95%), L&T Ltd (2.89%), M&M Ltd (1.64%), Tata Steel (1.60%) and Hindalco (1.54%).

Gainers from the BSE Sensex pack are Herohonda Motors (15.00%), TCS Ltd (0.98%) and HUL (0.36%).

The output of India''s infrastructure sector grew 2.8% in May from 3.1% in the same month last year, and this growth is slower than an upwardly revised 5% in April, government data showed on Tuesday. During April-May, the output shot up 3.9% as compared to 2.7% in the same period previous year. The infrastructure sector accounts for 26.7% of India''s industrial output.

On the global markets front the Asian markets which opened before the Indian market, ended mixed. Shanghai Composite and Hang Seng closed down by 15.95 and 149.78 points at 2,959.36 and 18,378.73 respectively. However, Nikkei 225, Straits Times index and Seoul Composite closed up by 174.97, 15.97 and 1.62 points at 9,958.44, 2.333.14 and 1,390.07 respectively.

European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading higher by 6.50 points at 4,891.59 and in London FTSE 100 is trading up by 1.69 points at. 4,295.72.

The BSE Realty index underperformed the benchmark indices and lost (7.42%) or 256.88 points at 3,207.19. Scrips that lost are Housing Development (12.19%), Indialbull Real (8.32%), DLF Ltd (8.05%), Unitech Ltd (6.68%) and Mahindra Life (5.04%).

The BSE Metal index tumbled (3.42%) or 384.03 points to close at 10,830.90. Main losers are Welspan Gujarat SR (9.21%), Ispat Industries (6.42%), Sterlite Industries (6.01%), Gujarat NRE C (4.94%) and Jai Corp Ltd (4.87%).

The BSE Power index dropped by (3.19%) or 93.56 points to close at 2,842.34. Losers are Suzlon Energy (11.44%), GMR Infra (8.79%), GVK Power (6.34%), Reliance Infra (5.53%) and Siemens Ltd (5.02%).

The BSE Capital Goods index ended down by (3.18%) or 420.27 points at 12,797.27. Losers are Suzlon Energy (11.44%), Havells India (7.73%), Alstom Proje (6.66%), Everest Kanto (6.31%) and Punj Lloyd (5.56%).

The BSE Bank stocks also lost (2.45%) or 206.38 points to close at 8,211.48. Major losers are Kotak Bank (5.81%), IDBI Bank (5.95%), Indus Ind Bank (5.49%), Axis Bank (3.86%) and ICICI Bank (3.57%).

The BSE Oil & Gas index decreased by (2.32%) or 223.14 points at 9,390.15. Reliance Natural Resources (7.65%), Essar Oil Ltd (5.37%), Aban Offshore (3.27%), Reliance Pet (3.20%) and Reliance (2.95%) ended in negative territory.

Four Soft Limited lost 1.69%. The company has been appraised as fully compliant at Maturity Level 3 with Carnegie Mellon''s Software Engineering Institute''s (SEI) Capability Maturity Model(R) Integration for Development (CMMI(R)) Version 1.2.

Patni Computer Systems Limited plunged 4.90%. The company has launched an Inventory Liability and Risk Management Dashboard in collaboration with SAP. The solution, built on top of the SAP Supply Network Collaboration {SAP SNC) application and leveraging the SAP BusinessObjects5" Xcelsius Enterprise software, helps enterprises calculate in near real time the monetary value of the inventory which is at risk at any given point across the supply chain.

Lupin Ltd. ended down 1.09%. The company announced the acquisition of worldwide rights for the intra-nasal steroid (INS) product, AllerNaze (triamcinolone acetonide, USP) Nasal Spray, 50mcg from Collegium Pharmaceutical, Inc.

Tata Communications lost 0.15%. The company and Starwood Hotels & Resorts Worldwide, Inc announced a partnership agreement as part of an ambitious plan to roll out public Telepresence rooms worldwide.

State Bank of India (SBI) decreased by 1.31%. The bank has decided to reduce interest rates for dealer financing segment by 50 basis points. The move is aimed to double its market share in dealer financing. Besides, the bank has also waived mortgage charges for these loans with effect from July 1, which is the bank’s foundation day.

Sensex surges 49% in June 2009 quarter on FII buying

Key benchmark indices reversed early gains to edge lower as a rush to raise funds through share sales by corporate India took its toll on the secondary equity markets. In fact, a bunching of institutional placement of shares by corporate India forced GMR Infrastructure to withdraw its issue today, 30 June 2009. The BSE 30-share Sensex lost 291.90 points or 1.97%, off 413.64 points from the day's high, and up 73.43 from the day's low.

Volatility was high throughout the day. All BSE sectoral indices declined with shares from realty, metal and capital goods sector worst hit. Turnover on BSE's cash market segment surged to Rs 6750 crore today, 30 June 2009 from Rs 6065 crore on Monday, 29 June 2009.

After a strong opening triggered by firm global stocks, the market soon lost ground as the Sensex slipped into the red. The barometer index moved between positive and negative zone amid volatile trade. Volatility remained high as the market weakened in mid-morning trade. The market extended losses in early afternoon trade. The market weakened further in afternoon trade. The market cut losses after hitting a fresh intraday low in mid-afternoon trade.

Concerns that a glut in share sales will suck liquidity from the secondary market weighed on investor sentiment after Indian companies on Monday, 29 June 2009, launched shares sales worth nearly $2 billion. A number of firms have announced plans to raise funds through shares sales to institutional investors, taking advantage of a solid surge in share prices in the past three months. Brokers expect companies to raise over $10 billion in the current financial year by way of share placements and initial public offers. The large equity sales may keep a natural lid on share prices in the secondary market

The near term major trigger for the market is the Union Budget 2009-10 on 6 July 2009. The Annual economic survey is scheduled to be presented on 2 July 2009 followed by the Rail Budget on 3 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.

Meanwhile, before the budget, investors will also 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.

Analysts expects that the government will provide a thrust to the infrastructure sector and push economic reforms to boost growth. 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 reversed early losses to post gains today, 30 June 2009. Key benchmark indices in UK, Germany and France were up by between 0.04% and 0.20%.

The UK economy shrank more than previously estimated in the first quarter March 2009 in the biggest contraction since 1958 as the recession choked industries from construction to services. Gross domestic product fell 2.4% from the final three months of 2008, compared with the prior measurement of a 1.9% drop, the Office for National Statistics said today in London.

Asian stocks turned mixed today, 30 June 2009. Key benchmark indices in Singapore, South Korea, and Taiwan were up by between 0.12% and 0.64%. However China's Shanghai Composite slipped 0.54% and Hong Kong's Hang Seng index fell 0.81%

Japan's Nikkei 225 Stock Average climbed 1.79% as the government said household spending unexpectedly increased in May, even as unemployment reached a five-year high.

Trading in the US index futures indicated the Dow could rise 19 points at the opening bell today, 30 June 2009.

US stocks rose on Monday, 29 June 2009 as higher oil prices lifted shares of energy companies and fund managers snapped up recent winners to embellish their portfolios a day before the close of the second quarter. The Dow Jones Industrial Average rose 90.99 points, or 1.08%, to 8,529.38. The Standard & Poor's 500 Index added 8.33 points, or 0.91% to 927.23 and the Nasdaq Composite index gained 5.84 points, or 0.32%, to 1,844.06

The BSE 30-share Sensex lost 291.90 points or 1.97% to 14,493.84. The Sensex opened points 45.23 higher at 14,830.97. At the day's high of 14,907.48, the Sensex rose 121.74 points in early trade. The Sensex lost 365.33 points at the day's low of 14,420.41 in late trade.

The S&P CNX Nifty was down 99.85 points or 2.27% to 4,291.10. Nifty July 2009 futures were at 4302.25, at a premium of 11.15 points as compared to the spot closing. Turnover on NSE's futures & options (F&O) segment surged to Rs 52,352.52 crore from Rs 47,588.96 crore on Monday, 29 June 2009.

The barometer index BSE Sensex gained 4785.34 points or 49.29% in the quarter ended June 2009 from its close of 9708.50 on 31 March 2009, on heavy buying by foreign funds. A strong global liquidity and increase in risk appetite boosted inflows after a comfortable victory for the Congress-led UPA government in parliamentary elections raised expectations of economic reforms. Foreign institutional investors (FIIs) bought shares worth a net Rs 2,996 crore in June 2009 (till 29 June 2009) while their inflow in calendar year 2009 totaled Rs 24,315.40 crore

The Sensex is up 4846.53 points or 50.23% in calendar year 2009 as on 30 June 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 6333.44 points or 77.61% as on 30 June 2009

Coming back to today's trade, the market breadth, indicating the overall health of the market, was weak. On BSE, 1859 shares declined as compared with 764 that gained. A total of 71 shares remained unchanged.

The BSE Mid-Cap index slipped 2.94% to 5,076.34 and the BSE Small-Cap index declined 2.51% to 5,740.04. Both these indices underperformed the Sense

The BSE Capital Goods index (down 3.18%), BSE Bankex (down 2.45%), the BSE Realty index (down 7.42%), BSE Power index (down 3.19%), the BSE Oil & Gas index (down 2.32%), the BSE Metal index (down 3.42%), the BSE Healthcare index (down 2.03%), the BSE Auto index (down 1.98%), underperformed the Sensex

The BSE PSU index (down 1.70%), BSE Consumer Durables index (down 1.51%), BSE IT index (down 0.55%), the BSE TECk index (down 1.54%), the BSE FMCG index (down 0.56%), outperformed the Sensex.

Among the 30-member Sensex pack, 24 slipped while the rest gained.

India's second biggest realty firm in terms of sales, Unitech, led a broad-based decline in realty shares. Unitech was down 6.62% on concerns of equity dilution after the company allotted 22.75 crore convertible warrants at Rs 50.75 each to Harsil Projects, a promoter group company. If Harsil Projects decides to convert the entire warrants into equity shares, it will result into an 11.12% equity dilution.

India's largest real estate developer by sales DLF tumbled 7.49% to Rs 312.70 and was the top loser from the Sensex pack.

Housing Development & Infrastructure tanked 12.51% on concerns of a large equity dilution after reports the company has launched a share sale to qualified institutional investors. As per reports, Housing Development & Infrastructure (HDIL) plans to sell shares in the range of Rs 240-250 each. The offer is to raise a minimum of $300 million, but can go up depending on the response. The firm has received shareholder approval to sell shares worth up to $600 million. Assuming the company raises $300 crore at floor price of Rs 240, it will result into equity dilution of about 22%

Parsvnath Developers (down 4.95%), Sobha Developers (down 1.72%), Omaxe (down 5.42%), Akruti City (down 2.48%), edged lower.

Infrastructure stocks slipped on profit booking after a recent run up triggered by hopes the government may announce higher spending on the infrastructure projects in the Union Budget 2009-10. Bharat Heavy Electricals (down 0.82%), Jaiprakash Associates (down 6.33%), GVK Power Infrastructure (down 6.92%), Larsen & Toubro (down 2.98%), Reliance Infrastructure (down 4.56%), Punj Lloyd (down 5.20%), slipped.

GMR Infrastructure lost 9.18% after the company informed BSE that it has decided to withdraw a qualified institutional placement (QIP) due to 'existing market conditions'. The company made the announcement in late trade.

Cement shares slipped on recent 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 2.36%), Ambuja Cement (down 2.37%), India Cement (down 4.26%), UltraTech Cement (down 1.46%), slipped. However Grasim ended flat at Rs 2317

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's largest commercial vehicle maker by sales Tata Motors slumped 7.25%, extending yesterday's 7.77% slide triggered by weak financial performance. 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. The results were announced after market hours on 26 June 2009. It was the top loser from the Sensex pack.

Other auto shares were mixed. India's largest small car maker by sales Maruti Suzuki India rose 0.36%. However India's largest tractor maker by sales Mahindra & Mahindra dropped 1.75%.

Motherson Sumi Systems rose 1.26% after consolidated net profit jumped 98.6% to Rs 122.83 crore in Q4 March 2009 over Q4 March 2008. The company announced the results during trading hours on Monday, 29 June 2009, when the stock had galloped 11.97% to Rs 75.30.

India's largest private sector firm by market capitalisation Reliance Industries (RIL) slipped 2.78% to Rs 2027.05 after striking day's high of Rs 2105.10. The Bombay high court on 15 June 2009 asked RIL to supply gas to Anil Ambani Group firm Reliance Natural Resources (RNRL) at rates much lower than approved by the government.

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.

Meanwhile, the Bombay High Court on Monday, 29 June 2009 approved the merger between RIL and Reliance Petroleum (RPL) but stayed its own order for four weeks to enable those objecting to the amalgamation to file appeal before division bench.

In March 2009, the boards of director of the two firms approved the merger, creating one of the world's largest petrochemical entities. The deal offered shareholders of RPL one RIL share for every 16 shares held by them.

Shares of offshore drilling firms advanced on expectations that firm oil prices will result in increase in exploration and production activities by oil firms which in turn could boost orders for offshore oil services firms. Selan Exploration (up 3.47%), Asian Oilfield (up 3.4%), Dolphin Offshore (up 5%), and Jindal Drilling (up 0.33%), edged higher

India's largest private sector aluminium maker by sales Hindalco slipped 1.94% after consolidated net profit declined 77.88% to Rs 485 crore in year ended March 2009 over year ended March 2008. Net sales rose 9.35% to Rs 65625 crore in year ended March 2009 over year ended March 2008. The results were announced during market hours today, 30 June 2009.

India's top cellular services provider by sales Bharti Airtel slipped 0.43%. 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.

Tulip Telecom jumped 8.24%. Tulip's net profit rose 60% to Rs 105.73 crore on a 12% increase in sales to Rs 461.62 crore in Q4 March 2009 over Q4 March 2008. The result was announced during market hours yesterday, 29 June 2009.

India's largest software services exporter by sales TCS gained 1.06% to Rs 390 on reports the company is aggressively looking at deals in the life sciences and healthcare space, which is the fifth largest revenue generating vertical for the firm. It was the top gainer from the Sensex pack.

Other outsourcing focussed IT stocks also outperformed the Sensex on speculation the US recession is easing. US is the biggest market for Indian IT firms. India's second largest software firm by sales Infosys Technologies slipped 0.43% on a 1.12% fall in its ADR on Monday, 29 June 2009.

India's third largest software services exporter by sales Wipro gained 0.09% even as its ADR slipped 0.34% on Monday, 29 June 2009

Banking stocks, which were on a roll recently, fell on profit taking. India's biggest bank in terms of branch network State Bank of India (SBI) slipped 1.42% to Rs 1740. The stock came off the day's high of Rs 1781.70.

India's second largest private sector bank by net profit HDFC Bank slipped 0.41% to Rs 1500 after hitting a day's high of Rs 1525. India's largest private sector bank by net profit ICICI Bank shed 3.14% to Rs 725.20, off the day's high of Rs 800

Hopes banks may get tax relief on interest earned on infrastructure lending and other favorable announcements in the Union Budget 2009-2010 had triggered recent gains in bank shares

Select FMCG shares gained on defensive buying. Hindustan Unilever (up 0.85%), Nestle India (up 3.65%), Dabur India (up 3.13%), and Colgate Palmolive India (up 2.87%), gained

But United Spirits tumbled 4.84% after group firm Shaw Wallace & Company sold its entire 10.27% stake in the company in the open market via multiple block deals today, 30 June 2009. It was the top traded counter on BSE with turnover of Rs 686.54 crore. It was followed by Suzlon Energy (Rs 268.12 crore), HDIL (Rs 228.48 crore), Educomp Solutions (223.76 crore), and Reliance Communications (Rs 187 crore).

Cals was the volume topper on BSE clocking volume of 9.29 crore shares followed by Suzlon Energy (2.46 crore shares), Unitech (2.02 crore shares), Ispat Industies (1.42 crorre shares), and Reliance Natural Resources (1.33 crore shares)

India's top pharma firm by market capitalisation Sun Pharma fell 0.74%, extending two-day 15.25% slide. The stock had tumbled in the past two days hit by 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.

Sugar shares declined sharply after the Centre on Monday, 29 June 2009 released 14.90 lakh tonnes of sugar to be sold in the open market in July 2009, to check rising prices. Bajaj Hindusthan (down 9.71%), Triveni Engineering (down 7.11%), Sakthi Sugar (down 2.47%), Shree Renuka Sugar (down 4.89%), and Balrampur Chini Mills (down 4.78%), slipped.

Zicom Electronic Security Systems was locked at upper limit of 5% at Rs 87.90 on the BSE after net profit surged 504.76% to Rs 2.54 crore on a 7.50% increase in sales to Rs 53.02 crore in Q4 March 2009 over Q4 March 2008. The result was announced after market hours yesterday, 29 June 2009.

Daily News Roundup - June 30 2009

L&T has bagged six orders worth Rs12.3bn from different vendors, which will be executed by Electrical & Gulf Projects Operating Company, a part of L&T’s Construction division. (ET)

SBI is in talks with Indonesia-based Bank Eksekutif to acquire a majority stake. (ET)

Bhel has bagged an Rs1.7bn contract from Chennai Petroleum for setting up a 20mw gas-turbine based co-generation power plant at its Manali refinery. (ET)

Aurobindo Pharma has sued the South African government after failing to win a US$400mn AIDS drug tender. (FE)

Reliance Retail may acquire Henkel India’s two soap brands - Aramusk and Moloy for ~Rs100mn. (ET)

Godrej Consumer may license out brands like Ganga, Banish, Evita and Godrej Tea to the Future group for a period of 3-5 years. (ET)

Britannia Industries plans to stage a comeback into the packaged milk business, four years after it exited this segment. (BS)

ArcelorMittal, Rio Tinto, GVK Power & Infrastructure, Essar Mineral Resources and JSW Steel are among 10 prominent corporations in a shortlist to develop 18 abandoned coal mines owned by state-owned Coal India Ltd and its eight subsidiaries. (BS)

PVR is in talks to acquire DT Cinemas, a wholly-owned subsidiary of the DLF Group. (ET)

Essel Mining and Suzlon may settle lawsuit, seeking damages over technical problems in the wind mills set up by Suzlon, out of court. (ET)

NTPC and the Orissa government enter into dispute over Talcher power issue. (FE)

Reliance Communications and Reliance Power restructured their respective promoter holdings through transfer of shares among group companies. (FE)

Unitech has raised ~Rs11.6bn through warrant issue to its promoter group firm Harsil Projects on a preferential basis. (ET)

One of the six 500MW units of the 3,000MW NTPC-Kaniha plant, which was shut down on Sunday will be restored by Tuesday evening. (BS)

GAIL plans to pick up equity stake in the 1,400MW Bidadi Gas project promoted by the Karnataka State Power Corporation Ltd. (BL)

Sobha Developers raises US$130mn on day one of the QIP issue. (ET)

Nagarjuna Construction plans to raise Rs5.5bn through QIP route, with a greenshoe option to retain Rs0.5bn in case the issue is over-subscribed. (ET)

FIPB has rejected the pleas by Tata Teleservices and Bharti Telemedia, seeking relief from penalties that were to be imposed by RBI. (ET)

UCO Bank plans follow-on offer to raise Rs5-6bn. (BS)

Biocon has signed an agreement with the US-based Mylan to develop manufacture and supply generic biological drugs globally. (ET)

Mahindra Holidays' public offer price is fixed at Rs300/share. (BS)

Jain Irrigation Systems has bagged Rs1.6bn order for the supply of mango pulp to Coca-Cola in India and abroad. (BL)

Jay Shree Tea and Industries has firmed up plans to acquire tea estates in Uganda and Kenya. (ET)

Apollo Hospitals achieved the financial closure for their Rs15bn expansion plan, to add 2,000 beds. (BS)

Wockhardt plans to sell more non-core businesses in next three to six months. (BL)

Rolta has bought back FCCBs amounting to US$38.3mn through a tender offer. (ET)

Sterlite Energy has tied up loans worth Rs61.5bn for its 2,400mw project in Orissa. (ET)

S Kumars to buy Hartmarx, the American clothing company for US$119mn. (ET)

Bank of Rajasthan plans to raise funds up to Rs2.5bn through private placement of shares. (FE)

Max India plans to raise Rs4bn through the QIP route. (ET)

Kerala Ayurveda is set to merge with Arya Vaidya Pharmacy. (ET)

Ford India has started testing prototypes of its small car which will hit Indian roads early 2010. (FE)

Vodafone Essar has completed a service expansion into seven new regions across India. (FE)

The Government may reconstitute its cabinet panel on KG gas dispute. (ET)

RBI has sent letters to banks seeking their views on launching credit default swaps (CDS) instrument. (ET)

The Government is considering a proposal to allow duty-free imports of transmission equipment required for new projects. (ET)

The Thirteenth Finance Commission (TFC) plans to compensate states for any revenue loss from implementing the proposed GST from April 1, 2010. (BS)

Exports by units registered under the Software Technology Parks of India (STPI) scheme are estimated to have touched about Rs2,026bn during 2008-09, a 12.4% yoy growth. (BL)

Tuesday turnaround likely

Happiness is nothing more than good health and a bad memory.

With global markets in the pink of health, we expect India to follow in their footsteps. The key indices will open in the green, in line with the advance across other Asian markets. It remains to be seen if the initial gains can be sustained as most players would like to remain cautious ahead of the Union Budget, on July 6. The Economic Survey will be presented in parliament on Thursday while the Railway Budget will be announced on Friday.

It is up to the Government to nurture the green shoots of economic recovery given that a few headwinds (both local and global) are yet to be weathered. The Budget of course will be an important event for the UPA to convey its policy intent at least for the current fiscal. Investors are also bracing for the latest batch of quarterly results that could provide further insight into the health of Indian companies. One should also keep an eye on corporate earnings across the world to have a better understanding of the global situation.

US stocks rallied overnight amid expectations that key reports on unemployment and manufacturing will show further signs of improvement in economic conditions. The US market will be shut on Friday, as July 4 falls on a Saturday. The jobs data will be unveiled on Thursday.

The CBOE volatility index (VIX), the benchmark index for US stock options, returned to its level before the September collapse of Lehman Brothers. The VIX, as the Chicago Board Options Exchange Volatility Index is known, lost 2.2 percent to 25.35. The VIX measures the cost of using options as insurance against declines in the S&P 500.

Bernard Madoff has been sentenced to the maximum 150 years in prison for engineering the biggest Ponzi scheme in modern history. Elsewhere in the world, Japan's unemployment rate hits a five-year high, rising to 5.2% in May, as the nation struggles to emerge from a severe recession.

Results Today: Adlabs, Bombay Dyeing, EIH, Electrosteel, FT, Gammon India, Gujarat State Petronet, Hindalco and Ispat Industries.

FIIs were net buyers in the cash segment on Monday at Rs2.92bn while the local institutions pumped in Rs1.44bn. In the F&O segment, the foreign funds were net sellers at Rs693.6mn. On Friday, FIIs were net buyers at Rs6.73bn in the cash segment. Mutual Funds were net buyers of Rs3.7bn on the same day.

US stocks ended higher on Monday, with oil and technology shares pacing the advance as investors scooped up shares hit in last week's fall, at the start of a holiday-shortened trading week.

The Dow Jones Industrial Average added 91 points, or 1.1%. The S&P 500 index gained 8 points, or 0.9%, and the Nasdaq rose 6 points, or 0.3%.

All financial markets are closed on Friday for the Independence Day holiday weekend. Ahead of that, a slew of economic reports are due, including readings on housing, manufacturing and the labor market.

US stocks are likely to be volatile this week due to the extended weekend and the spate of economic news. Trading will be lower than usual with a lot of market participants taking off early ahead of the holiday.

The Dow and S&P 500 have closed lower for the last two weeks as a more than three-month rally has lost steam. The S&P 500 had surged more than 40% on bets that the recession is moderating. But worries that stocks have risen too far, too fast have dragged on sentiment lately. The Nasdaq inched higher last week after falling the week before.

Treasury prices rallied, with the yield on the benchmark 10-year note falling to 3.48% from 3.54% on Friday.

US light crude oil for August delivery rose $2.33 or 3.4% to settle at $71.49 a barrel on the New York Mercantile Exchange.

COMEX gold for August delivery fell 30 cents to settle at $940.70 an ounce.

In currency trading, the dollar fell versus the euro and the yen.

Reports are due Tuesday on consumer confidence, regional manufacturing and home prices.

European shares rose, with banks and oil producers among the best performers amid renewed optimism about the economic backdrop, while Deutsche Telekom received a boost as a result of deal speculation.

The pan-European Dow Jones Stoxx 600 index rose 1.7% to close at 208.03, gaining ground for the first time in three sessions.

Germany's DAX index traded up 2.3% to finish at 4,885.09, the French CAC-40 index gained 2% to close at 3,193.68 and the UK's FTSE 100 index rose 1.3% to close at 4,294.03.

Indian markets started off the week with modest gains amid day of trades. After starting off with a positive bias, key indices were unable to hold on their gains as traders and investors preferred to stay on the side lines ahead of the Union Budget to be presented next week.

The consumer durables, realty and metals stocks were in demand. Even the Mid-Cap and the Small-Cap stocks attracted buying interest. The Railway stocks were in the limelight ahead of the Rail Budget to be presented on July 3rd. Stocks like BEML, Kalindee Rail and Texmaco were the talk of the town.

The BSE Sensex gained 21 points or 0.2% to end at 14,785 after touching a high of 14,956 and a low of 14,685. The index had opened at 14,815 against the previous close of 14,764.

The NSE Nifty gained 15 points or 0.3% to shut shop at 4,391.

Among the BSE Sectoral indices BSE Consumer Durables index was the top gainer surging 4.2%, followed by the BSE Realty index up 3%, BSE Metal index up 2.6% and BSE Oil & Gas index up 2.4%.

Even the BSE Mid-Cap index ended higher by 1.1% and BSE Small-Cap index added 1.5%.

However, the BSE IT index slipped 2%, BSE Teck index down 1.2% and BSE Auto index slipped 0.5%.

In the Sensex, the major gainers were, Sterlite Industries, DLF, Reliance Industries, ONGC, Tata Steel, BHEL, Hindalco and NTPC.

On the other hand, major losers were Tata Motors, Sun Pharma, TCS, HDFC, Grasim, Infosys and Hero Honda.

Among the big gainers in the broader market were BEML, GMR Infra, Zee Ent, GE Ship, Union Bank, Tulip Tele, APIL and Yes Bank.

Outside the frontline indices, the top losers included Apollo Hosp, India Cement, Gujarat NRE, Mphasis and Jai Corp.

Aurobindo Pharma is reportedly suing South Africa’s National Treasury after the government awarded a US$400mn AIDS drugs-supply contract to rivals that charged higher prices.

At least 60% of the contract to supply anti-AIDS drugs from June last year to next May went to Aspen Pharmacare Holdings Ltd. and Adcock Ingram Holdings Ltd. Aurobindo, claims its prices were almost a third cheaper than locally produced products, stated reports.

The South African government gives preference to local suppliers. The subsidies give Indian drugmakers a cost advantage of 30%, added reports.

Shares of BHEL gained by 1.5% to Rs2235 after the company announced that it secured a contract worth Rs1.7bn from Chennai Petroleum for setting up an energy efficient and environment friendly co-generation power plant at its Manali Refinery. The scrip touched an intra-day high of Rs2269 and a low of Rs2205 and recorded volumes of over 0.1mn shares on BSE.

Shares of Bharti Airtel erased early gains and ended in the red, the stock was down 0.3% to shut shop at Rs807. According to reports, the company is in talks with four foreign banks to provide US$4bn to pay for its planned merger with MTN Group Ltd.

Shares of Adani Enterprises surged by over 4.5% to Rs824 after the company’s unit Adani Power Ltd. plans to raise about Rs22bn selling shares in an IPO by the fourth week of July. The scrip touched an intra-day high of Rs827.95 and a low of Rs805 and recorded volumes of over 0.12mn shares on BSE.

Shares of Suzlon Energy declined by over 5% to Rs117 after the company reported consolidated revenues of Rs260.82bn for FY2008-09, a 91% growth over the previous year.

Profit Before Tax for the year (before exceptional items) stood at Rs16.13bn. The net profit stood at Rs4.28bn for the year ended 31st March 2009 as compared to Rs10.17bn for the corresponding period translating in to decline of 58% YoY.

Stocks to Watch - PSTL, ICICI Bank, SBI

Nagarjuna Construction Company (NCC) announced its plan of issuing equity shares and securities to the qualified institutional buyers (QIBs) through Qualified Institutional Placement (QIP) for an amount not exceeding Rs 5.50 billion. Shares of the company closed up Rs 6.45, or 4.73%, at Rs 142.80**.

Apollo Hospitals Enterprise reported a steady growth in standalone net profit for the quarter ended March 2009. During the quarter, the profit of the company rose 33.06% to Rs 291.40 million from Rs 219 million in the same quarter last year. Shares of the company declined Rs 35.7, or 5.92%, to trade at Rs 566.90.

State Bank of India (SBI) has decided to lower interest rates for this segment by 50 basis points, in a bid to double its market share in dealer financing. Shares of the bank closed up Rs 16.15, or 0.92%, at Rs 1,765.10.

Pyramid Saimira Theatre (PSTL) has put its businesses and assets in the US and Malaysia up for sale a move that aims to decline the losses and generating funds for Indian operations. Shares of the company closed down Rs 0.85, or 3.31%, at Rs 24.85.

ICICI bank and its merchant banking arm, ICICI Securities (I-Sec), have entered into an agreement, whereby all M&A (mergers and acquisitions) deals will be done by ICICI Bank. Shares of I C I C I Bank closed down Rs 5.65, or 0.75%, at Rs 748.70.

Northbound journey may continue

The overnight gains in international markets and positive opening in most of the Asian indices in ongoing trades may help the local market advance further. Among the key indices, the Nifty can see an up- move till 4450 levels and has a key support at 4350 levels in the near-term. The Sensex has a likely support at 14650 and may face resistance at 14950.

Major US indices finished positive on monday, with oil and technology shares leading the way as investors scooped up shares hit in the recent retreat, at the start of a holiday-shortened trading week. While the Dow Jones gained by 91 points at 8529, the Nasdaq moved up by 6 points to close at 1844.

Indian ADRs were mostly mixed on the US bourses. MTNL notched up significant gains and soared over 7.62% while Patni Computers, Satyam, Dr Reddy's and VSNL moved up between 1-3% each. Select floats witnessed selling pressure. Tata Motors led the slump and dropped over 3% while Infosys, Wipro, ICICI Bank and HDFC Bank were down nearly half-a-percent each.

Crude oil prices moved up sharply, with the Nymex light crude oil for August delivery gained $2.33 to close at $71.49 a barrel. In the commodity space, the Comex gold for August delivery lost 30 cents to settle at $940.70 an ounce.

Bullion metals lose some luster

Prices drop as the dollar fluctuates

Precious metal prices fell at USA on Monday, 29 June, 2009. Prices fell today as the dollar fluctuated throughout the course of the day. The dollar traded higher against its counterparts earlier during the day but then fell.

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 Monday, gold for August delivery ended at $940.7, lower by $0.30 (0.03%) an ounce on the New York Mercantile Exchange. Earlier during the day, it hit a high of $943.2. Last week, gold ended higher by 1%. This was the first weekly gain for the yellow metal in four weeks. Year to date, gold prices are higher by 7%.

For the month of June, 2009, gold is still down by 4% on a m-t-d basis. 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 (8.9%) since then.

On Monday, Comex silver futures for July delivery fell 18.1 cents (1.3%) at $13.847 an ounce. Last week, silver ended lower by 0.5%. 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 28.2% this year. For 2008, silver had lost 24%.

In the currency market on Monday, the euro strengthened against the dollar. Earlier, the dollar was slightly higher after China' central bank governor ruled out any "sudden" changes to its foreign-exchange reserves.

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 lower by Rs 34 (0.23%) at Rs 14,609 per 10 grams. Prices rose to a high of Rs 14,649 per 10 grams and fell to a low of Rs 14,553 per 10 grams during the day's trading.

At the MCX, silver prices for July delivery closed Rs 253 (1.11%) lower at Rs 22,351/Kg. Prices opened at Rs 22,530/kg and fell to a low of Rs 22,252/Kg during the day's trading.

Crude shoots up

Crude prices cross $70 again on supply concerns

Set of geo political tensions took crude prices back above the $70 mark at Nymex on Monday, 29 June, 2009. Prices rose on Monday after attack on Nigerian pipeline once again raised supply concerns.

On Monday, crude-oil futures for light sweet crude for July delivery closed at $71.49/barrel (higher by $2.33 or 3.3%). During intra day trading, crude rose to a high of $72.4/barrel. Last week, crude ended lower by 1.2%.

For the month of June, 2009, crude is still 6.3% higher on a m-t-d basis. 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 51.3% since then. Year to date, in 2009, crude prices are higher by 58%.

As per reports, the Movement for the Emancipation of the Niger Delta said that it had struck at the Shell Forcados offshore platform in Delta state. Royal Dutch Shell said that it was shutting down some production in Nigeria after an attack by a militant group. Nigeria is a key exporter of crude.

Also at the Nymex on Monday, July reformulated gasoline rose 6.20 cents to end at $1.936 a gallon and July heating oil gained 5.40 cents to finish at $1.784 a gallon. The gasoline and heating oil contracts expire tomorrow.

August natural-gas futures fell 17 cents to end at $3.94 per million British thermal units.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

At the MCX, crude oil for July delivery closed at Rs 3,449/barrel, higher by Rs 97 (2.9%) against previous day's close. Natural gas for July delivery closed at Rs 192.4/mmbtu, lower by Rs 6.4/mmbtu (3.2%).

SGX Nifty Live Update - June 30 2009

4,416.0 +27.0

Automotive Axles

We recommend a buy in Automotive Axles from a short-term perspective. It is apparent from the charts of Automotive Axles that after recording a multi-year low of Rs 70 in early March, the stock reversed its trend. Since then, the stock has been on an intermediate-term uptrend. Following a minor correction to the support level Rs 130, it resumed the uptrend. On June 22, the stock gained 6 per cent, reinforcing the bullish momentum. Further the stock surged almost 6 per cent, accompanied with above average volume on June 29. The stock is trading well above its 21- and 50-day moving averages. The daily and weekly relative strength indices are on the verge of entering the bullish zone. The weekly moving average convergence and divergence indicator are entering the positive territory. The intermediate-term uptrend line is intact. We are bullish on the stock. We expect it to continue its rally until it hits our price target of Rs 167. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 143.

via BL