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Wednesday, July 01, 2009
BSE Bulk Deals to Watch - July 1 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
1/7/2009 531223 ANJANI SYNTH ARVIND KALYANJI RAMBHIA B 71654 33.24
1/7/2009 531223 ANJANI SYNTH ARVIND KALYANJI RAMBHIA S 72082 33.07
1/7/2009 531223 ANJANI SYNTH SAGAR TEX CREATION PVT.LTD S 85863 33.75
1/7/2009 532914 ARCOTECH LTD TEJINDER SINGH S 500000 3.00
1/7/2009 512149 AVANCE TECHN KAUSHIK GANGARAM RATHOD B 43210 35.88
1/7/2009 532995 AVON CORP S V ENTERPRISES B 88027 8.61
1/7/2009 526839 CCAP LTD RAMABEN JAYSUKHLAL PAREKH B 38846 30.20
1/7/2009 526839 CCAP LTD MONA PAREKH B 30000 30.20
1/7/2009 526839 CCAP LTD SARITA KANODIA S 23602 30.20
1/7/2009 532363 COMP-U-LEARN SRECKO INDHAN LIMITED B 71252 9.50
1/7/2009 532363 COMP-U-LEARN SRECKO INDHAN LIMITED S 66981 9.49
1/7/2009 526550 COUNTRY CLUB ANGEL INFIN PRIVATE LIMITED B 531331 24.60
1/7/2009 526550 COUNTRY CLUB ANGEL INFIN PRIVATE LIMITED S 600752 24.62
1/7/2009 532848 DELTA CORP NEW VERNON ASSET MGMT LTD NEW VERNON INDIA LTD B 900000 41.50
1/7/2009 532696 EDUCOMP SOLN OPG SECURITIES P LTD B 128675 4045.57
1/7/2009 532696 EDUCOMP SOLN OPG SECURITIES P LTD S 128675 4047.53
1/7/2009 532876 EVERONN SYS SUNEET LAL B 79115 433.99
1/7/2009 532876 EVERONN SYS OPG SECURITIES P LTD B 156456 436.95
1/7/2009 532876 EVERONN SYS JMP SECURITIES PVT LTD B 85188 443.54
1/7/2009 532876 EVERONN SYS SUNEET LAL S 79115 433.41
1/7/2009 532876 EVERONN SYS OPG SECURITIES P LTD S 156456 437.21
1/7/2009 532022 FILAT FASH RUCHITA AMIT SHAH S 33000 97.54
1/7/2009 508918 GREYCELLS EN INDIA MAX INVESTMENT FUND LTD B 26000 166.50
1/7/2009 508918 GREYCELLS EN KIRITKUMAR MUCHHALA HEMANG S 25990 166.50
1/7/2009 505712 GUJARAT AUTO NEENA DILIP VARIYA B 10600 251.90
1/7/2009 505712 GUJARAT AUTO DILIP VASANTLAL VARIYA S 9600 251.90
1/7/2009 509709 INTERN CONVE R C A LIMITED B 18216 264.33
1/7/2009 532705 JAGRAN PRAK INDEPENDENT NEWS MEDIA INVESTMENTS LIMITED S 4500000 67.56
1/7/2009 514312 JAIHIND SYNT PRASHANT MAHADEV KAMBLE S 44440 2.98
1/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 76951 50.52
1/7/2009 516078 JUMBO BAG LT CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 41236 50.15
1/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 50601 50.17
1/7/2009 516078 JUMBO BAG LT HEMENDRA AGARWAL S 70000 49.76
1/7/2009 531784 KADAMB CONST RAMBHABA HLDG. & TRDG. CO. PVT S 15000 30.35
1/7/2009 531602 KOFF BR PICT DIPESH SURESH JAIN S 350300 3.58
1/7/2009 526263 MOLDTEK TECH RAJENDAR REDDY NARRA B 18001 85.74
1/7/2009 526263 MOLDTEK TECH SUNIDHI SECURITIES & FINANCE LTD. S 27081 85.79
1/7/2009 590011 MOVING PICTU-PMS AZMATULLAH MD B 42747 4.98
1/7/2009 500304 NIIT LTD TRANSGLOBAL SECURITIES LTD. B 1426782 67.30
1/7/2009 500304 NIIT LTD TRANSGLOBAL SECURITIES LTD. S 1419842 67.38
1/7/2009 524820 PANAM PETROC DIPAK K SHAH B 25000 101.05
1/7/2009 531273 RADHE DEVELO PAWAR RAVI VASANTBHAI B 56374 77.57
1/7/2009 533083 RISHABHDEV AMEET VIPIN GALA B 86000 23.12
1/7/2009 533083 RISHABHDEV Naman Securities & Finance Pvt. Ltd. B 169295 24.19
1/7/2009 533083 RISHABHDEV AMIT SAHITA FINANCE PVT. LTD. B 82853 24.35
1/7/2009 533083 RISHABHDEV AMEET VIPIN GALA S 86000 22.87
1/7/2009 533083 RISHABHDEV Naman Securities & Finance Pvt. Ltd. S 169295 24.21
1/7/2009 533083 RISHABHDEV AMIT SAHITA FINANCE PVT. LTD. S 81853 24.35
1/7/2009 513436 SHAH ALLOY L AMIT BUSINESS PVT LTD B 122000 20.13
1/7/2009 513436 SHAH ALLOY L IVORY CONSULTANTS PVT LTD S 122000 20.13
1/7/2009 512048 SPLASH MEDIA MANJU KHANDELIA B 10000 82.85
1/7/2009 512048 SPLASH MEDIA ANURAG KHANDELIA B 10000 82.85
1/7/2009 512048 SPLASH MEDIA HITESH BABUBHAI DOBARIYA S 16770 82.85
1/7/2009 512048 SPLASH MEDIA BHANUMATI DHARAMRAJ GIRI S 11230 82.85
1/7/2009 526133 SUPERTEX IND PATEL NITABEN SHAILESHBHAI B 51000 59.28
NSE Bulk Deals to Watch - July 1 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
01-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,223701,888.81,-
01-JUL-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,BUY,195121,889.02,-
01-JUL-2009,AHMEDFORGE,Ahmednagar Forgings Ltd,RAPID ESTATES PRIVATE LTD,BUY,174000,51.00,-
01-JUL-2009,APTECHT,Aptech Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,238286,169.32,-
01-JUL-2009,DELTACORP,Delta Corp Limited,NEW VERNON ASSET MANAGEMENT LTD - NEW VERNON INDIA LTD,BUY,1100000,41.50,-
01-JUL-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,BUY,193689,4016.44,-
01-JUL-2009,EVERONN,Everonn Systems India Lim,ASIT C MEHTA FOREX PRIVATE LTD,BUY,86185,431.83,-
01-JUL-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,BUY,112764,433.88,-
01-JUL-2009,EVERONN,Everonn Systems India Lim,MULTIPLEX CAPITAL LTD.,BUY,94004,429.94,-
01-JUL-2009,EVERONN,Everonn Systems India Lim,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,128515,442.28,-
01-JUL-2009,EVERONN,Everonn Systems India Lim,SUNEET LAL,BUY,75604,434.74,-
01-JUL-2009,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,BUY,1514177,233.93,-
01-JUL-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,4060464,52.68,-
01-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,9636601,21.03,-
01-JUL-2009,NIITLTD,NIIT Limited,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,946016,67.74,-
01-JUL-2009,NIITLTD,NIIT Limited,OM INVESTMENTS,BUY,864623,67.83,-
01-JUL-2009,NIITLTD,NIIT Limited,TRANSGLOBAL SECURITIES LTD.,BUY,1342245,67.26,-
01-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,223301,889.03,-
01-JUL-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,SELL,195121,889.47,-
01-JUL-2009,AHMEDFORGE,Ahmednagar Forgings Ltd,MSR MARKETING PRIVATE LTD,SELL,174000,51.00,-
01-JUL-2009,APTECHT,Aptech Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,238486,169.69,-
01-JUL-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,SELL,193689,4018.10,-
01-JUL-2009,EVERONN,Everonn Systems India Lim,ASIT C MEHTA FOREX PRIVATE LTD,SELL,86185,432.97,-
01-JUL-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,SELL,112764,434.31,-
01-JUL-2009,EVERONN,Everonn Systems India Lim,MULTIPLEX CAPITAL LTD.,SELL,94004,430.28,-
01-JUL-2009,EVERONN,Everonn Systems India Lim,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,110897,441.79,-
01-JUL-2009,EVERONN,Everonn Systems India Lim,SUNEET LAL,SELL,75604,435.73,-
01-JUL-2009,HCC,Hindustan Construc Co.,EMERGING INDIA FOCUS FUNDS,SELL,1391270,104.02,-
01-JUL-2009,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,SELL,1514177,234.09,-
01-JUL-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,4060464,52.66,-
01-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,8718763,20.96,-
01-JUL-2009,JAGRAN,Jagran Prakashan Limited,INDEPENDENT NEWS & MEDIA INVESTMENTS LIMITED,SELL,4500000,68.87,-
01-JUL-2009,NIITLTD,NIIT Limited,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,926016,67.70,-
01-JUL-2009,NIITLTD,NIIT Limited,OM INVESTMENTS,SELL,863023,67.86,-
01-JUL-2009,NIITLTD,NIIT Limited,TRANSGLOBAL SECURITIES LTD.,SELL,1342245,67.22,-
01-JUL-2009,VINCARDS,Vintage Cards & Creations,KAPIL MARWAHA,SELL,3455,18.45,-
Post Session Commentary - July 1 2009
Sustained buying during second half of the trading propelled market to end the today’s session with decent gains. In addition, positive European markets along with firm US index futures also lifted the sentiments. Market touched the day’s high during afternoon trading on account of upward movement in front liners. Though, uncertainty also gripped the market ahead of upcoming Union Budget and building hopes on India Inc. BSE Sensex ended above 14,600 level and NSE Nifty below 4,300 mark.
The market opened slightly above the dotted line in line with other Asian stocks. However, the US stocks markets ended in negative on Tuesday backed by disappointing consumer confidence and expectations readings for the month of June. The Consumer Confidence for the month of June came in at 49.3 that missed expectation. Further, domestic market abruptly turned volatile and slipped into red zone during mid session. Investors opted to remain on sidelines on uncertainties regarding forthcoming Union Budged. The benchmark indices managed to gain ground further and rebounded sharply from the lower level on positive opening of European markets. Higher movement in the US index futures also lifted the sentiments. Market maintained its upbeat impetus till end and ended with gains on healthy buying interest observed over the ground. From the sectoral front, most of the indices ended in positive. Besides, strong buying was seen in Reality, Teck, Bank, Auto, Oil & Gas, PSU and Power stocks. Mid Cap and Small Cap stocks also gathered favor during the trading session. However, Consumer Durables stocks witnessed selling from its basket.
Among the Sensex pack 25 stocks ended in green territory and 5 in red. The market breadth indicating the overall health of the market remained negative as 1339 stocks closed in red while 1255 stocks closed in green and 79 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 151.63 points at 14,645.47 and NSE Nifty ended up by 49.80 points at 4,380.90. BSE Mid Caps closed with gains of 51.17 and 17.38 points at 5,127.51 and 5,757.42 respectively. The BSE Sensex touched intraday high of 14,727.49 and intraday low of 14,355.52.
Gainers from the BSE Sensex pack are DLF Ltd (4.76%), M&M Ltd (3.16%), Reliance Infra (2.99%), RCom (2.98%), Tata Motors (2.80%), Bharti Airtel (2.58%), Sun Pharma (2.51%), SBI (2.17%), HUL (2.10%), JP Associates (1.68%), Reliance (1.68%) and Infosys Tech (1.11%).
Losers from the BSE Sensex pack are Hindalco (3.53%), ONGC Ltd (1.36%), ACC Ltd (0.65%) and Tata Power (0.33%).
On the global markets front the Asian markets which opened before the Indian market, ended mixed. Hang Seng and Nikkei 225 closed down by 149.78 and 18.51 points at 18,378.73 and 9,939.93 respectively. However, Shanghai Composite, Straits Times index and Seoul Composite closed up by 48.79, 19.41 and 21.59 points at 3,008.15, 2.352.55 and 1,411.66 respectively.
European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading higher by 69.44 points at 4,878.08 and in London FTSE 100 is trading up by 60.32 points at. 4,309.53.
The BSE Realty index outperformed the benchmark indices and gained (4.25%) or 136.32 points at 3,343.51. Scrips that gained are Indialbull Real (7.28%), DLF Ltd (4.76%), Unitech Ltd (3.89%), Anant Raj (2.99%) and Sobha Dev (1.79%).
The BSE Teck index jumped (1.56%) or 40.65 points to close at 10,830.90. Main gainers are NIIT Ltd (14.65%), Aptech Ltd (10.38%), Mahanag Tele (4.62%), Idea Cell (4.14%) and Tata Teleserv (3.90%).
The BSE Bank stocks also gained (1.33%) or 109.57 points to close at 8,321.05. Major gainers are Axis Bank (4.31%), SBI (2.17%), Union Bank (2.13%), Kotak Bank (1.67%) and Allahabad Bank (1.48%).
The BSE Auto index advanced by (1.26%) or 57.33 points to close at 4,615.76. Gainers are Escorts Ltd (13.29%), MRF Ltd (8.69%), Apollo Tyre (4.22%), M&M Ltd (3.16%) and Ashok Leyland (3.02%).
The BSE Oil & Gas index increased by (1.12%) or 104.92 points at 9,495.07. BPCL (5.49%), HPCL (4.08%), Essar Oil Ltd (2.82%), IOC Ltd (1.72%) and Reliance (1.68%) ended in positive territory.
The BSE Consumer Durables index ended slightly down by (0.15%) or 4.53 points at 2,953.90. Losers are Gitanjali GE (4.80%), Rajesh Export (0.83%) and Videocon Ind (0.08%).
L&T Ltd gained 0.38%. The company has bagged major orders aggregating Rs, 651 crore for two hydrocarbon projects. L&T will build a green field refinery project at Bathinda for HPCL-Mittal Energy Limited (HMEL)j valued at Rs. 440 crore. In addition, L&T has received an order from Engineers India Limited for the supply and construction of a reactor and regenerator system valued at Rs. 211 crore for the Fluidized Catalytic Cracking (FCC) unit of Mangalore Refinery and Petrochemicals Limited (MRPL), Mangalore.
Nagarjuna Construction Company Limited ended up by 1.93%. The company has secured four new orders aggregating Rs. 797 crores.
Maruti Suzuki India Limited ended higher by 0.44%. The company sold a lotal of 75,109 vehicles in June 2009, this includes 13,336''units for export. This month''s export numbers are the highest ever-monthly export volume in the company''s history.
LIC Housing Finance has increased by 1.89%. The company slashed the lending rates by 50 basis points for its existing customers with effective from July 1 and this move will help to lower the monthly payments for its existing borrowers.
SBI ended up by 2.17%. The bank launched two special home loan schemes that assure low interest rates in the first three years. The bank has earlier announced a special rate of interest of 8% for loan upto Rs.30 lakh in the first year. Now the bank has fixed the interest rate for the second year and third year at 9% for loan upto Rs.30 lakh.
Suzlon Energy Ltd zoomed 2.99% to on bargain hunting after the stock fell 16% in the preceding two trading sessions.
Gujarat State Petronet Ltd gained 6.11% after net profit increased phenomenally 23.5% to Rs. 123.41 crore in the year ended March 2009 over the year ended March 2008.
Glodyne Technoserve Ltd surged 4.99% after the company’s board of directors recommended a liberal 1:1 bonus issue.
Sensex up 290 points from the day's low
Key benchmark indices logged decent gains after seeing choppy swings throughout the day. Firm global markets and speculative build up of positions in the run up to the Union Budget 2009-10, supported the domestic bourses. The BSE 30-share Sensex gained 151.63 points or 1.05%, off 82.02 points from the day's high but up 289.95 points from the day's low. Realty shares were the star performers of the day
After opening slightly higher key benchmark indices slipped into the negative zone only to rebound later in early volatile trade. But a sell-off gripped the market soon on concerns that a glut in share sales by corporate India will suck liquidity from the secondary market. The market cut losses later as an index showing expansion in the manufacturing activity in June 2009 offset dismal exports for May 2009.
Firm opening of European stocks and higher US index futures boosted Indian stocks in early afternoon trade. The market came sharply off the higher level only to bounce back later. Volatility was immense in the last one hour of trade.
Following withdrawal of an institutional placement by GMR Infrastructure on Tuesday, 30 June 2009, realty firm Unitech said on Wednesday, 1 July 2009, it would raise Rs 2789 crore ($580 million) by issuing shares to qualified institutional buyers.
Corporate India appears to be a hurry to raise funds. A number of firms have announced plans this week 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.
Raising of funds will help corporates finance expansion and reduce debt. On the flip side, it will result in equity dilution which the stock market normally does not like due to earnings dilutions. Realty firm Housing Development & Infrastructure (HDIL) has reportedly raised $350.30 million by QIP issue on the same day.
Institutional investors also bought $150 million of shares from sugar maker Bajaj Hindusthan this week, as well as $110 million from realty firm Sobha Developers and $100 million from construction firm Hindustan Construction Company.
Meanwhile, the Indian government on Tuesday, 30 June 2009 eased overseas borrowing rules for developers of tax-free special economic zones, township projects and non-banking finance firms engaged in funding infrastructure projects.
The latest macro data confirmed that the economy is recovering. The Markit Purchasing Managers' Index (PMI) based on a survey of 500 companies, fell slightly to 55.34 in June 2009 from 55.7 in May 2009, which was the highest in eight months, data released a little while ago showed. Still, it is above the threshold of 50 that separates expansion from contraction. It hit a trough of 44.4 in December 2008 and has steadily risen since then. The new orders index fell to 58.6 in June 2009 from 59.1 in May 2009.
On the flip side, India's exports fell for the eighth month in a row in May 2009, this time by 29.2%, due to global downturn, while imports dropped by 39.2%, reflecting slowdown in domestic consumption. Exports dropped to $11.01 billion in May 2009 from $15.55 billion in the same month last year, according to the government data released today, 1 July 2009. Imports dipped to $16.21 billion in May 2009 from $26.68 billion over the year-ago period. The trade deficit during April-May 2009-10 was $10.20 billion against $19.88 billion.
The near-term major trigger for the stock 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 broad expectations from the budget are thrust on infrastructure, including easier financing of long-gestation infrastructure projects, a plan for disinvestment, some reforms such as hiking foreign direct investment limit for insurance and a clear road map to rein in the high fiscal deficit in the future. Consumption is likely to be shored up through the various rural spending programmes. At the same time, the government may rollback tax sops given to sectors doing well such as services.
The corporate sector is expecting a removal of the fringe benefit tax (FBT). 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.
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.
European markets were trading firm today, 1 July 2009, with oil, banks, and telecom shares leading the rally. Key benchmark indices in UK, Germany and France were up by between 1.35% and 1.77%.
Asian markets were mostly in the green. Key benchmark indices in South Korea, China, Singapore, and Taiwan were up by between 0.83% and 2.28%. However, key indices in Hong Kong and Japan fell 0.81% and 0.19% respectively
China's manufacturing growth accelerated in June 2009, adding to a picture of an improving economy as the effects of stimulus spending and new bank lending fueled activity. Brokerage CLSA's PMI rose to 51.8 in June 2009 from 51.2 in May 2009, the highest level since July 2008. The CLSA figures suggest China's manufacturing sector has expanded for three straight months.
A reading above 50 in either index indicates conditions are in an expansionary mode, while anything below 50 signals contraction.
Trading in the US index futures indicated the Dow could rise 44 points at the opening bell today, 1 July 2009. Earlier, the US index futures data showed the Dow could open slightly lower.
US markets declined on Tuesday, 30 June 2009, after consumer confidence unexpectedly slid and delinquencies on the least-risky mortgages more than doubled. The Dow Jones industrial average slipped 82.38 points, or 0.97%, to 8,447, the S&P 500 fell 7.91 points, or 0.85%, to 919.32, and the Nasdaq Composite index declined 9.02 points, or 0.49%, to 1,835.04.
The June 2009 US job data would be closely watched. The data will be unveiled on Thursday, 2 July 2009 instead of the usual Friday, 3 July 2009 as the US markets will be closed on Friday, 3 July 2009, for independence day holiday. The Job data could have a huge impact on US and global stock markets as positive data would confirm an improvement in the US economy. US non-farm payrolls are forecast to lose 355,000 jobs in June 2009 versus May's 2009 slide of 345,000. The US unemployment rate is projected to jump to 9.6% in June 2009 from 9.4% in May 2009.
The BSE 30-share Sensex gained 151.63 points or 1.05% to 14,645.47. The Sensex opened 12.59 points higher at 14,506.43. At the day's high of 14,727.49, the Sensex rose 233.65 points in mid-afternoon trade. The Sensex lost 138.32 points at the day's high low of 14,355.52 in early afternoon trade
The S&P CNX Nifty was up 49.80 points or 1.16% to 4,340.90 Nifty July 2009 futures were at 4339.40, at a discount of 1.50 points as compared to the spot closing. Turnover in NSE's futures & options (F&O) segment rose to Rs 55,613.06 crore from Rs 52,352.52 crore on Tuesday, 30 June 2009.
The stock market has risen sharply in the past four months or so, on heavy buying by foreign funds. The BSE Sensex is up 4998.16 points or 51.80% in calendar year 2009 as on 1 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 6485.07 points or 79.47% as on 1 July 2009
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 3,224.90 crore in the month of June 2009 while their inflow in calendar year 2009 totaled Rs 24,544.30 crore (till 30 June 2009).
Coming back to today's trade, the market breadth, indicating the overall health of the market, turned negative after a positive start. On BSE, 1341 shares declined as compared with 1292 that advanced. 73 shares remained unchanged.
The BSE clocked a turnover of Rs 5753 crore as compared with Rs 6,784.02 crore on Tuesday, 30 June 2009.
The BSE Mid-Cap index rose 1.01% to 5,127.51 and the BSE Small-Cap index gained 0.30% to 5,757.42. But both these indices underperformed the Sensex
All sectoral indices on BSE logged gains with the BSE Consumer Durables index being the only exception.
The BSE Bankex (up 1.33%), the BSE Realty index (up 4.25%), the BSE Oil & Gas index (up 1.12%), the BSE TECk index (up 1.56%), the BSE Auto index (up 1.26%), outperformed the Sensex
The BSE Metal index (up 0.53%), the BSE Healthcare index (up 0.24%), BSE Power index (up 0.98%), BSE Capital Goods index (up 0.81%), BSE PSU index (up 0.98%), BSE Consumer Durables index (down 0.15%), BSE IT index (up 0.92%), the BSE FMCG index (up 0.87%), underoperformed the Sensex.
Among the 30-member Sensex pack, 26 advanced while only 4 of them slipped
Rate sensitive realty stocks rose after reports Housing Development & Infrastructure (HDIL) and Sobha Developers successfully raised funds through share sales to foreign institutions. HDIL rose 1.22% to Rs 235.55, rebounding from day's low of Rs 224.10. Sobha Developers advanced 3.73% to Rs 217. Unitech, India's second largest real estate developer by sales, rose 4.40% to Rs 83.10
India's largest real estate developer by sales DLF jumped 5.05% to Rs 326.50 sand was the top gainer from the Sensex pack.
But infrastructure firm GMR Infrastructure lost 1.16% after it was on Tuesday, 30 June 2009 forced to abandon its attempt to raise $500 million in off-market share sales to institutional investors after they showed little interest in the offering.
India's largest engineering and construction company by revenue Larsen & Toubro rose 0.43% after the company bagged two orders aggregating Rs 651 crore in the hydrocarbon sector.
Nagarjuna Construction Company rose 2.08% after the company bagged fresh orders aggregating Rs 797 crore. The company announced the new order win during trading hours today, 1 July 2009.
India's largest private sector firm by market capitalisation Reliance Industries (RIL) advanced 1.37% to Rs 2051, as it may move the Supreme Court against a recent unfavourable high court order on gas sales. RIL said on Tuesday, 30 June 2009, it could not sign a gas supply agreement with Reliance Natural Resources (RNRL) as there was no clarity on government approval for the terms. RIL said it wanted the terms such as price, quantity and tenure to be subject to government approval. However RNRL lost 1.01%
The Bombay High Court, in its order dated 15 June 2009, had directed that Anil Ambani's RNRL will get assured gas supply of 28 million metric standard cubic metre per day (mmscmd) of gas from RIL's Krishna-Godavari basin for 17 years at $2.34 million per metric British thermal unit (mmbtu). This is 44.28% less 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.
PSU OMCs rose on recent reports a road map for a partial decontrol of petrol and diesel prices may be announced in the Union Budget 2009-10. BPCL (up 5.79%), HPCL (up 3.59%), and IOCL (up 2.06%), gained.
The government is likely to allow state-run oil marketing companies (Oil PSUs) to fix retail prices of at least auto fuels viz. petrol and diesel in a phased decontrol programme. As a result, oil companies may have the freedom to price auto fuels within a certain band. But if crude oil moves up beyond a level (recommended level of $75 a barrel) the government would step in with controlled prices at the pump level to protect consumers from the impact of high global prices.
Gujarat State Petronet rose 6.01% after net profit rose 23.5% to Rs 123.41 crore on 16.7% rise in net sales to Rs 487.50 crore in the year ended March 2009 over the year ended March 2008. The company announced the results after market hours on Tuesday, 30 June 2009.
Auto stocks were in demand as the government may provide a thrust to the rural sector in the budget. Car and two-wheeler makers derive substantial sales from rural markets.
India's top small car maker by sales Maruti Suzuki India rose 0.33% after total vehicle sales rose 22.63% to Rs 75,109 units in June 2009 over June 2008. Maruti's domestic sales rose 9.5% to Rs 61,773 units, while exports soared 175.8% to Rs 13,336 units in June 2009 over June 2008. The announcement came during market hours today, 1 July 2009.
India's largest tractor maker by sales Mahindra & Mahindra gained 3.10% after 2.55 lakh shares were traded on the counter in a bulk deal at Rs 712 per share on the National Stock Exchange
India's largest commercial vehicle maker by sales Tata Motors gained 3.66%, reversing two-day slide of over 15% 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.
TVS Motor Company rose 2% after sales increased 6% at 115,488 units in June 2009 over June 2008.
But India's largest bike maker by sales Hero Honda Motors slipped 0.13% despite a 23.7% surge in sales to 3,65,734 units in June 2009 over June 2008
India's top cellular services provider by sales Bharti Airtel advanced 2.14%. As per recent 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.
Banking stocks rose on hopes they may get tax relief on interest earned on infrastructure lending and on other favorable announcements in the Union Budget 2009-2010.
India's biggest bank in terms of branch network State Bank of India (SBI) reversed early losses to settle with gain of 1.72%. The bank on Tuesday, 30 June 2009 introduced a new home loan scheme under which it offer loans up to Rs 30 lakh at fixed rates of 8% for the first year and 9% for the next two years. The bank's earlier offer of home loans at a fixed rate of 8% for the first year ended on Tuesday, 30 June 2009.
Under the new scheme, customers will have two options in the fourth year: a floating rate at 2% below State Bank Advance Rate (SBAR), which is currently at 11.75%, or a fixed rate of 1% below SBAR with a five year re-set. A re-set means new rates will come into effect at the end of the specified period.
India's second largest private sector bank by net profit HDFC Bank gained 0.29% and India's largest private sector bank by net profit ICICI Bank rose 0.68%.
Outsourcing focussed IT stocks gained on reports the government is likely to extend the tax benefits on exports in the Budget. The scheme expired in March 2009.
India's second largest software firm by sales Infosys Technologies rose 1.02% despite a 1.24% fall in its ADR on Tuesday, 30 June 2009.
India's largest software services exporter by sales TCS rose 0.72%. India's third largest software services exporter by sales Wipro gained 0.48%.
As per reports TCS, Wipro and Infosys, apart from SAP and IFS Defense, are pursuing contracts worth Rs 2,000 crore from the country's defense forces, the Indian Air Force (IAF) and the Army, who are seeking to modernise their processes and become more efficient organisations.
Glodyne Technoserve was locked at 5% upper limit after the company's board of directors recommended a liberal 1:1 bonus issue. The company made this announcement before trading hours today, 1 July 2009.
India's largest private sector aluminium maker by sales Hindalco tumbled 2.26% to Rs 84.50, extending yesterday's 1.59% fall, 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 on Tuesday, 30 June 2009. It was the top loser from the Sensex pack Nevertheless, the stock recovered from day's low of Rs 80.25
Meanwhile, the company's board of directors in its meet held on 30 June 2009 approved raising funds upto $500 million by selling shares to institutional investors.
However other metal stocks gained on firm domestic demand. Sterlite Industries (up 0.86%), JSW Steel (up 1.44%), Tata Steel (up 1.31%), Sesa Goa (up 1.97%), gained.
FCCG stocks gained after the firms said sales and consumption have not declined due to the delay in the onset of monsoons. Hindustan Unilever (up 2.40%), ITC (up 0.95%), Marico (up 1.30%), Colgate Palmolive India (up 2.51%), and Bata India (up 4.25%), gained.
Fortunes of fast-moving consumer goods (FMCG) firms are closely linked to the monsoon as they derive substantial of sales from rural markets.
Mundra Port & Special Economic Zone, a developer of special economic zone rose 0.79% after the government on Tuesday, 30 June 2009 eased overseas borrowing rules for developers of tax-free special economic zones.
But infrastructure sector financiers declined despite easier overseas borrowing norms for non-banking finance firms engaged in funding infrastructure projects. IDFC lost 1.07% and SREI Infrastructure shed 5.48%.
Shipping stocks gained on reports the Shipping Ministry will award 6 port projects worth Rs 3319 crore under the ministry's 100-day agenda. Varun Shipping (up 1.42%), GE Shipping (up 2.83%), Mercator Lines (up 2.87%), Garware Shipping (up 1.89%), and Essar Shipping (up 1.68%), rose.
Shipping Corporation of India jumped 7.95% on reports the Shipping Minister is examining divestment in the company.
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%), Texmaco (up 2.11%), Titagarh Wagons (up 1.56%), Kalindee Rail Nirman Engineers (up 1.63%), Beml (up 3.63%), spurted.
Educomp Solutions was the top traded counter on the BSE with turnover of Rs 427.45 was followed by Reliance Capital (Rs 262.63 crore), Reliance Industries (Rs 234.12 crore), Suzlon Energy (Rs 196.87 crore), and HDIL (Rs 189.22 crore).
Unitech was the volume topper on BSE clocking volume of 2.05 crore shares followed by Ispat Industies (1.89 crore shares), Suzlon Energy (1.86 crore shares), NIIT (1.70 crore shares), and Reliance Natural Resources (1.54 crore shares)
Shares of companies providing services to the education sector gained on speculative buying ahead of the Union Budget 2009-10 on 6 July 2009 on speculation the government's major thrust will be on this sector. Educomp Solutions (up 15.62%), Everonn Systems (up 11.45%), NIIT (up 15.62%), Navneet Publications (up 9.03%), Jetking Infotrain (up 17.81%), surged.
United Spirits rose 0.34% on reports private equity majors like KKR, Blackstone and Capital International are in race to acquire stake in the company. The private equity investors are reported to be looking to buy stake worth $250-300 million in United Spirits. According to the report, the three PE investors have given term sheets to the company.
EIH declined 1.59% after consolidated net profit fell 23.27% to Rs 169.95 crore in the year ended March 2009 over the year ended March 2008. The company announced its results after market hours on Tuesday, 30 June 2009.
Cipla declined 2.68% after a block deal of 5.03 lakh shares was executed on NSE at Rs 244 per share. The block deal constituted 0.06% of the company's equity.
Areva T&D India rose 7.90% after the company's France-based parent Areva said its board approved sale of its global power transmission and distribution unit in a bid to raise cash to shore up its balance sheet and fund future investments.
US stocks end quarter on a somber note
Best quarter for US stocks in many years
US stocks ended the last day of the second quarter on a weak note on Tuesday, 30 June, 2009. Despite that, it was the best quarter witnessed by stocks in many years. Stocks shed their gains soon earlier in the morning after the consumer confidence data checked in lower than expected showing that expectations among consumers took a drop once again in June after a sudden rise in May. After this, stocks lingered in the red for the entire day.
The Dow Jones Industrial Average ended lower by 82.38 points at 8,447. The Nasdaq Composite Index, ended lower by 9 points at 1,835.22. S&P 500 ended lower by 7.9 points at 919.3.
3M, Microsoft, Bank of America and Mc Donalds were the only Dow components that traded higher today. IBM, P&G, Caterpillar, Exxon Mobil and Chevron were the main Dow laggards. All ten sectors posted a loss led by telecom and materials sectors.
The Dow logged a second quarter gain of almost 11%, though. That's the best quarterly performance since the fourth quarter of 2003. Nasdaq registered a second quarter gain of 20%, the best since 2003. Meanwhile, the S&P 500 logged a second quarter gain of 15%, which would be the best quarterly gain posted since the fourth quarter of 1998. Financials saw the best gains of any major sector during the second quarter.
The Conference Board reported on Tuesday, 30 June, 2009 that reading on U.S. consumer confidence relapsed in June, falling to 49.3 from a slightly downwardly revised 54.8 in May.
After a large confidence jump in May, consumers once again grew more pessimistic in June about their present and future. The present situation index declined to 24.8 in June from 29.7 in May, while the expectations index fell to 65.5 from 71.5.
The percentage of consumers with plans to buy an automobile within six months fell to 4.6% from 5.7%, while those with plans to buy a home fell to 2.7% from 2.8%, and those with plans to buy major appliances fell to 26.5% from 29.2%.
In a separate report, the Chicago Purchasing Manager Index for June just came in at 39.9, which is a bit above the 39 that was expected and up from the 34.9 that was registered in the prior report.
Barring Sify, all other Indian ADRs ended in the red today. ICICI Bank and Tata Motors were the largest losers shedding 4.3% and 9.3% respectively.
Crude prices ended lower at Nymex on Tuesday, 30 June, 2009. Prices fell today as consumer confidence in US showed unexpected drop for last month. Despite the drop, crude registered highest quarterly gain since 1990. On Tuesday, crude-oil futures for light sweet crude for August delivery closed at $69.89/barrel (lower by $1.6 or 2.2%). During intra day trading, crude rose to a high of $73.38/barrel.
In the currency market on Tuesday, the dollar index, a six-currency measure of the greenback's value, rose, heading for the first gain in four sessions, after the business-backed Conference Board in New York said consumer sentiment declined this month. The dollar index gained 0.4% today. The dollar index dropped by 6.4% in the second quarter and is lower by 1% on a y-t-d basis.
Tomorrow will again be a day heavy in economic data. In economic data, the ADP Employment (June), Construction Spending (May), ISM Index (June), Auto & Truck Sales (June) reports all due for release. In addition, the weekly crude inventory report is scheduled for 10:30ET.
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Market seen opening slightly lower
Key benchmark indices are seen opening slightly lower extending yesterday's 2% slide. The SGX Nifty futures for July 2009 expiry fell 5.50 points in Singapore. Global cues were mixed. Also a rush to raise funds through share sales by corporate India may continue to take its toll on the secondary equity markets. Meanwhile the foreign trade data for May 2009 unveiled by the government today, 1 July 2009 will be closely watched.
In a move which may boost sentiment, the Indian government on Tuesday, 30 June 2009 eased overseas borrowing rules for firms to speed up work at infrastructure projects as the cash strapped government tries to boost a slowing economy.
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
World Bank President Robert Zoellick said on Tuesday, 30 June 2009 that financial markets are showing signs of stabilization, but warned that the global crisis was far from over in developing countries. Developing countries were only now feeling the full force of the global economic and financial crisis, which could quickly return to advanced economies where it began, Zoellick added in his speech in Washington.
Back home, volatility is likely to zoom on the bourses in the near term major ahead of 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.
Most Asian markets were trading higher today, 1 July 2009. Key benchmark indices in Singapore, South Korea, China and Taiwan were up by between 0.19% and 1.39%. However Hong Kong's Hang Seng index fell 0.81%
US markets declined on Tuesday, 30 June 2009, after consumer confidence unexpectedly slid and delinquencies on the least-risky mortgages more than doubled. The Dow Jones industrial average slipped 82.38 points, or 0.97%, to 8,447; the S&P 500 fell 7.91 points, or 0.85%, to 919.32, and the Nasdaq Composite index declined 9.02 points, or 0.49%, to 1,835.04.
Back home, as per the provisional figures on the NSE, foreign institutional investors (FIIs) bought shares worth Rs 107.88 crore on Tuesday, 30 June 2009 while domestic institutional investors purchased shares worth Rs 197.98 crore.
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 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.
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.
May open flat tracking global cues
The market is likely to remain under pressure following an overnight fall on the US market and weakness among major Asian indices in the ongoing trades and it may exhibit strong volatility during the intra-day trades. However, continuing higher foreign fund inflows and prevailing bullish sentiment may help the market to get some buying support in initial trades. Among the key local indices, the Nifty could decline to 4250 on the downside while on the upside there is a near term resistance at 4350. The Sensex has a likely support at 14350 and may face resistance at 14650.
US indices tumbled Tuesday, at the end of the S&P 500's best quarter in more than a decade, with a weaker-than-expected consumer confidence report and a slump in oil prices sparking the selloff. While the Dow Jones tumbled by 82 points to close at 8447, the Nasdaq dropped 9 points at 1835.
Major Indian ADRs, too, buckled under selling pressure on the US bourses. Tata Motors slipped 9.36%, ICICI Bank declined 4.60%, Satyam dropped 4.22%, HDFC Bank lost 2% and Infosys lost 1.24% while Wipro, MTNL, Rediff and Patni Computers slipped marginally. However, Dr Reddy and VSNL closed with the marginal gains.
Crude oil prices lost, with the Nymex light crude oil for August series lost by $1.60 to close at $69.89 a barrel. In the commodity space, the Comex gold for August series lost $13.30 to settle at $927.40 a troy ounce.
Pre Session Commentary - July 1 2009
Today domestic markets are likely to open negative as majority of Asian markets have opened in red. The sentiments are weak ever since the infrastructure sector that recorded a lower growth as compared to the previous year. Some early selling pressure is likely to erupt however as the day progresses the domestic traders would rely a lot on the movement of European markets. Range bound trade is what we expect for the day’s trading session.
On Tuesday, Indian market pared all 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. 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. The markets are likely to trade range bound today with negative bias.
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.
On Tuesday, the US Markets closed in red. The disappointing Consumer Confidence Index data for the month of June pulled the market sentiments towards southward. The Index recorded at 49.3 which was far below the expected and the consensus estimates. The second quarter gain data with regard to the financial sector which recorded nearly 44% gain incited investors to pull back in stock prices. S&P 500 finished June flat; or up just one-fifth of a point, however for the second quarter it recorded a gain of 17%. The CRB Commodity Index and the materials sector gained roughly 16% during the second quarter. Due to surge in the greenback, US light crude oil for August Futures delivery declined by 2.3% at $68.90 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) fell 82.38 points at 8,447.00 the NASDAQ Composite (RIXF) index fell by 9.02 points at 1,835.04 and the S&P 500 (SPX) declined by 7.91 points at 919.32.
Today major stock markets in Asia are trading mixed. Hang Seng is low by 149.78 points at 18,378.73. Shanghai Composite is up by 26.73 points at 2,986.094. Japan''s Nikkei is trading up by 47.58 points at 10,006.02. Strait Times is low by 3.22 points at 2,329.92. KLSE Composite is flat at 1,075.24.
Indian ADRs plunged on Tuesday following a slump in Wall Street. In the IT space, Satyam Computers was down 4.6%, Infosys was down 1.24%, Wipro was down 0.42% and Patni Computers was down 0.36%.In the banking space, ICICI Bank was down 4.22% and HDFC Bank was down 2.13%. In the telecom space, MTNL was down 0.91% while Tata Communication was up 0.2%.In other sectors, Tata Motors was down 9.36%, Sterlite Industries was down 5.54% while Dr Reddy''s Labs was up 1.13%.
The FIIs on Tuesday stood as net buyers in equity and net sellers in debt. The Gross equity purchased stood at Rs 2,888.10 Crore and gross debt purchased stood at Rs 147 Crore, while the gross equity sold stood at Rs 1,990.90 Crore and gross debt sold stood at Rs 155 Crore. Therefore, the net investment of equity and debt reported were Rs 397.20 Crore and Rs (8) Crore respectively.
On Tuesday, the partially convertible rupee ended at Rs 47.90/91, 0.41% stronger than its previous close at 48.10/11. The exporter dollar sales the FIIs inflow followed by some buying form importers kept the rupee at a flat end.
On BSE, total number of shares traded were 49.94 Crore and total turnover stood at Rs 6,784.02 Crore. On NSE, total number of shares traded was 97.41 Crore and total turnover was Rs 19,339.45 Crore.
On NSE Future and Options, total number of contracts traded in index futures was 759852 with a total turnover of Rs 15,978.49 Crore. Along with this total number of contracts traded in stock futures were 658956 with a total turnover of Rs 18,754.49 Crore. Total numbers of contracts for index options were 730449 with a total turnover of Rs 16,273.56 Crore and total numbers of contracts for stock options were 38137 and notional turnover was Rs 1,6273.56 Crore.
Today, Nifty would have a support at 4,233 and resistance at 4,345 and BSE Sensex has support at 14,285 and resistance at 14,612.
Daily News Roundup - July 1 2009
Government is contemplating action against RIL for committing 28 mmscmd from its KG basin to RNRL at a price of US$2.34 per mmBtu without its permission. (ET)
ONGC Videsh, the overseas arm of the ONGC has put in a bid for Zubair oil field in Iraq in consortium with Russia’s Gazprom and Turkish Petroleum. (ET)
GMR Infrastructure abandons its attempt to raise Rs20bn in off-market share sales to institutional investors after they showed little interest in the offering. (ET)
RIL has said in a letter to RNRL that it would not sign any agreement involving gas supply, price, quantity and tenure without the government’s approval. (BS)
LIC Housing Finance cuts interest rates for existing borrowers. (FE)
IOC to invest over Rs600bn for capacity expansion . (BL)
Unity Infra to raise Rs2.5bn via QIP . (BL)
Jet Airways, Sahara fails to resolve dispute. (FE)
SBI cuts home loan rates for first three years. (ET)
Blackstone, KKR and Capital International are in race for buying a stake worth $250-300 million in United Spirits. (ET)
GVK Power QIP’s to raise Rs25bn. (ET)
Gammon Infra to mop up Rs10bn through the issue of securities in the market. (ET)
Motherson Sumi Systems to acquire the stake of its partner Wilhelm Pudenz and Wickmann Werke in the JV firm Motherson Pudenz Wickmann. (BS)
Lupin has acquired the global rights for an intra-nasal steroid (INS) product, AllerNaze. (ET)
PAIDF invests Rs4.5bn in Essar Telecom Kenya Holdings, the Essar group’s telecom arm for African operations, for an undisclosed stake. (ET)
IOC, BPCL and HPCL has raised jet fuel prices by 6%. (ET)
DLF’s plan to buy DE Shaw’s stake in DAL hits roadblock. (ET)
HCL Technologies bagged a five-year IT applications support and infrastructure management deal from US-based beverages firm DPS. (ET)
TCS sees muted growth in next few quarters . (BL)
Reliance Power, part of the ADAG, is in talks with five leading global power companies to sell 15% equity stake in the company. (BS)
United Spirits Ltd. (USL), the flagship spirits firm of the Vijay Mallya-owned UB Group, has raised close to Rs9.5bn through a open market sale. (BS)
TRAI unveiled draft regulations for the implementation of mobile number portability. (ET)
The output in the six infrastructure industries grew by 2.8% in May as against 3.1% in May last year. It was at 3.9% during April-May 2009-10 versus 2.7% a year-ago. (BS)
The government is likely to retain its GDP growth projection of 7% for 2009-10 as it expects a sharp recovery in the second half of the fiscal year. (ET)
Fiscal deficit in the first two months of FY10 reached 27.3% of the annual target. It stood at Rs907.6bn in April-May 2009-10 versus full-year target of Rs3.32tln. (BS)
The current account has turned into a surplus of US$4.75bn during the January-March quarter as against a deficit of US$1.5bn in the year-ago period. (BS)
Government is readying a package of concessions worth around Rs35bn for the plantation sector. (ET)
RBI allows SEZ developers to raise overseas loans. (FE)
Private trusts may be allowed to invest in listed stocks. (BL)
Petroleum sector, taxes of local bodies to be out of GST net. (BL)
Another choppy day in store
A tactical retreat is not a bad response to a surprise assault, you know. First you survive. Then you choose your own ground. Then you counterattack.
Who let the bears out? That may perhaps be the question uppermost on most players’ minds. The sell-off struck suddenly and came on higher volume. Even the breadth was bad. May be the market feels the Budget may be a non-event. A few economic reports globally served as a grim reminder that not all is hunky dory after all.
Today, we expect the market to open on a cautious note and turn sideways later. Stay guarded and resist the temptation of jumping the gun at least till the Budget. Be selective and do your homework before picking a stock. Given the outlook on India, and the recent rally, there appears little scope for further upside. To justify current valuations and keep the bulls interested India Inc. needs to come out with a strong report card.
FIIs are likely to be the jokers in the pack. Of late, this breed seems to have turned cautious. The flood of QIP issues may have prompted some of these funds to take profits. Interestingly, local and overseas funds were net buyers on Tuesday.
FIIs were net buyers in the cash segment on Tuesday at Rs1.08bn while the local institutions pumped in Rs1.98bn. In the F&O segment, the foreign funds were net sellers at Rs9.38bn. On Monday, FIIs were net buyers at Rs3.97bn in the cash segment.
US stocks slipped on Tuesday, at the end of the best quarter for the S&P 500 index in more than a decade, as a weaker-than-expected consumer confidence report and a slump in oil prices sparked fresh selloff.
The Dow Jones Industrial Average fell 82 points, or 0.9%, to end at 8,447. The S&P 500 index lost 8 points, or 0.9%, to 919.32 and the Nasdaq Composite index gave up 9 points, or 0.5%, to close at 1,835.04.
Wall Street gained on Monday as investors scooped up shares hit in the recent selloff. But the advance petered out on Tuesday at the end of a strong quarter. The S&P 500 gained 15.2% in the April through June period for its best quarter since the final three months of 1998.
Tuesday brought a reading that showed consumer confidence slipped in June after rising in the last two months. That setback was weighing on stocks. But, the weakness was also part of a broader pullback after the recent rally. The S&P 500 surged 40% after bouncing off 12-year lows hit March 9.
It is possible that the second-quarter earnings could give the market a lift. At the same time, US stocks could continue to consolidate sideways in the third quarter and then ramp up again in the fourth quarter.
The Dow gained 11% this quarter, posting its best three-month period since the second quarter of 2003. The Nasdaq has gained 20% and is on track to post its best quarter since the second of 2003. But weakness in the first quarter means first half of 2009 results are less upbeat. The Dow is down 3.8%, the S&P is up 1.7% and the Nasdaq is up 16.4%.
The June Consumer Confidence index from the Conference Board fell to 49.3 from a revised 54.8 in May, versus forecasts for a rise to 55.3.
The S&P/Case Shiller 20-city home price index fell 18.1% in April from a year ago versus forecasts for a drop of 18.6%. But on a month-over-month basis, the index showed some improvement. Prices fell 0.6% versus March, after posting a 2.2% drop in the previous month.
The Chicago PMI, a regional read on manufacturing, rose to 39.9 in June from 34.9 in May. Economists thought it would rise to 39.
In currency trading, the dollar rallied versus the euro and the yen.
US light crude oil for August delivery fell $1.60 to settle at $69.89 a barrel on the New York Mercantile Exchange.
Treasury prices slipped, raising the yield on the benchmark 10-year note to 3.51% from 3.47%.
COMEX gold for August delivery fell $13.60 to settle at $927.40 an ounce.
European shares declined on the last day of a strong second quarter, with banks and oil producers leading the fall amid doubts about the health of the advanced economies such as the US, the UK, Europe and Japan.
Flat for much of the session, the pan-European Dow Jones Stoxx 600 index fell 1% to 205.83 after Wall Street opened lower.
Germany's DAX index was down 1.6% to 4,808.64, while the French CAC-40 index dropped 1.7% to 3,140.44 and the FTSE 100 index shed 1% to 4,249.21.
Indian markets ended in deep red on Tuesday amid all round selling witnessed over the bourses. Markets started off in line with the advance across other Asian and the US markets. However, were unable to hold on to their gains as most players opted 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.
The sentiment was affected amid concerns that the slew of QIP issues launched/announced by several Indian companies may prompt institutions (local and global) to divert their money from the secondary market. It may be recalled that barring an odd day, the FIIs have been net sellers over the past few days.
The BSE Sensex slipped 291 points or 2% to end at 14,493 after touching a high of 14,907 and a low of 14,420. The index had opened at 14,831 against the previous close of 14,786.
The NSE Nifty slipped 100 points or 2.2% to shut shop at 4,291.
Asia markets were mixed; the Hang Seng index slipped 0.8% at 18,378, Australia's S&P/ASX ended higher by 1.7% to 3,954. Nikkei index added 1.8% at 9,958.
Elsewhere in the Europe, stocks were trading with gains. The FTSE index was up 0.2% at 4,303. The DAX index was up 0.3% at 4,895. CAC 40 index gained 0.0.3% at 3,198.
Coming back to India, among the BSE Sectoral indices BSE Realty index was the top loser losing 7%, followed by the BSE Metal index down 3%, BSE Capital Goods index down 3% and BSE Power index down 3%.
Even the BSE Mid-Cap index ended lower by 3% and BSE Small-Cap index slipped 2.3%.
In the Sensex, the major losers were Sterlite Industries, DLF, RCom, Reliance Infra, JP Associates, ICICI Bank, L&T and Reliance Industries.
On the other hand, major gainers were TCS, HUL, Hero Honda and Tata Power.
Among the big losers in the broader market were Welspun Gujarat, Idea, RNRL, APIL, GVK Power, EKC and Moser Baer.
Outside the frontline indices, the top gainers included Tulip Tele, M&M Fin, Glaxo, Nestle, Piramal Health, Concor and BEML.
Almost half a dozen of Indian companies plan to sell shares to institutional investors, taking advantage of over a 50% rise in the key index this quarter.
Emami Ltd plans to raise upto Rs3.4bn in the share sale and it is said to sell shares at Rs310-Rs340 per share. While, Bajaj Hindusthan has set its minimum price at Rs203.8.
HCC also will sell shares. Real estate companies including HDIL and Sobha Developers filed share sale documents on Monday.
Hindalco Industries also announced that the Board of Directors approved QIP to eligible investors up to amount not exceeding US$500mn equivalent to Rs24bn.
GMR Infrastructure announced that it scrapped a US$500mn share sale due to lack of interest from investors. The company earlier cut the amount it was seeking to raise to US$100mn. GMR had joined Lanco Infratech and Emami in trying to raise funds from selling shares.
The stock was down by 9% to Rs142 after hitting an intra-day high of Rs160 and an intra-day low of Rs140 recording volumes of 8.1mn shares on BSE.
Shares of United Spirits slipped by 5% to Rs873 after nearly 12.4mn shares representing ~12.4% equity changed hands in two transactions on the exchanges.
United Spirits raised nearly Rs11bn selling treasury stocks, the deal was done with an aim to de-leverage its balance sheet.
In the two block deals, 5.26mn shares were sold at an average price of Rs900 per share and ~7.2mn shares were sold at an average price of Rs882 per share in the second block.
Reports stated that Reliance Mutual Fund has picked up shares worth Rs1bn from the blocks in the open market. United Spirits has an outstanding debt of Rs75bn and it has a debt equity ratio of 3.2. The company was planning to raise another US$200-US$250mn via QIP route, added reports.
Shares of Suzlon declined by over 11% to Rs104. According to reports, Essel Mining and Suzlon may settle lawsuit, seeking damages over technical problems in the wind mills set up by Suzlon, out of court. The scrip touched an intra-day high of Rs120 and a low of Rs102 and recorded volumes of over 24mn shares on BSE.
Hindalco reported 80% decline in full-year profit. Net income, including unit Novelis Inc., fell to Rs4.85bn in the year to March 31. On the other hand, sales rose 9% to Rs656.3bn.
The stock ended lower by 1.5% to Rs86.45 after hitting an intra-day high of Rs88.8 and an intra-day low of Rs85 recording volumes of 4mn shares on BSE.
Shares of Sakthi Sugars erased its early gains and ended lower by 2% to Rs57.4. The company announced that it has entered into a Master Restructuring Agreement with the Lenders in respect of restructuring of its debts under the Corporate Debt Restructuring Scheme announced by Reserve Bank of India.
Bharat Forge
We recommend a sell in Bharat Forge from a short-term trading perspective. It is apparent from the charts of Bharat Forge that after bottoming in January at the low of Rs 69, it commenced to trend upward. The stock was on an intermediate-term uptrend till it encountered resistance at Rs 194 in early June. Triggered by the negative divergence displayed both in the daily and weekly relative strength index the stock reversed direction. Since early June, the stock has been on a short-term downtrend. In mid-June, the stock breached both the 21-day moving average as well as intermediate-term uptrend-line and continued its decline. On June 30, the stock slipped almost 5 per cent crossing below the 50-day moving average line. The daily RSI is featuring in the bearish zone and the weekly RSI is declining in the neutral region. We are bearish on the stock from a short-term perspective. We expect it to decline further until it hits our price target of Rs 130. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 151.
via BL
Reliance Power stake sale..
Reliance Power Ltd (R-Power), part of the Reliance Anil Dhirubhai Ambani (ADA) group, is in talks with five leading global power companies to sell 15 per cent equity stake in the company.
Preliminary talks have started with three Chinese power companies, which include China Light and Power Holdings (CLP), and French and Canadian companies.
Sources said Anil Ambani was in China last week to hold discussions with Chinese power companies for a possible stake sale. The company is willing to place the equity to one or two power companies.
R-Power needs over Rs 70,000 crore to develop 17 medium and large power projects — either directly or through subsidiaries — with a combined planned installed capacity of 33,480 Mw.
A 15 per cent equity dilution would bring in around Rs 6,000 crore at the company’s current market price.
The promoters hold 84.78 per cent in the company and the public 15.22 per cent following a mega initial public offer last year that netted the company approximately Rs 10,000 crore.
R-Power had also tried to divest 10 per cent to a strategic partner two years ago, but the deal did not materialise.
Asked about the new deal, a Reliance ADA group spokesperson declined to comment. CLP’s India managing director Rajiv Mishra, however, denied discussions with R-Power.
R-Power has identified projects in western India (12,220 Mw), northern India (9,080 Mw), north-eastern India (4,220 Mw), southern India (4,000 Mw) and eastern India (3,960 Mw).
Among these are eight coal-fired projects (18,580 Mw) to be fuelled by reserves from captive mines and supplies from India and abroad, two gas-fired projects (10,280 Mw) to be fuelled primarily by reserves from the Krishna Godavari Basin off the east coast of India, and seven hydroelectric projects (4,620 Mw), three of these in Arunachal Pradesh and one in Uttarakhand.
Three of these projects are Ultra Mega Power Projects, which were put up for bidding by the government as a means of bridging the growing power deficit. These include power plants of 3,960 Mw each at Sasan in Madhya Pradesh and Tilaiya in Jharkhand and a 4,000 Mw plant at Krishnapatnam in Andhra Pradesh.
via Business Standard
Bullion metals lose more glaze
Prices drop as the dollar strengthens
Precious metal prices fell at USA on Tuesday, 30 June, 2009. Prices fell today as the dollar rose today after consumer confidence data showed unexpected drop for latest month.
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 Tuesday, gold for August delivery ended at $927.4, lower by $13.30 (1.4%) an ounce on the New York Mercantile Exchange. 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 4.9%.
For the month of June, 2009, gold ended down by 5.4%. Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. For the second quarter, gold ended higher by 0.5%. The metal had 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 Tuesday, Comex silver futures for July delivery fell 27.3 cents (1.9%) at $13.574 an ounce. Last week, silver ended lower by 0.5%.
Silver ended 13% down for the month of June, 2009. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. For second quarter, silver rose 4.5%. Year to date, silver has climbed 20% this year. For 2008, silver had lost 24%.
In the currency market on Tuesday, the dollar index, a six-currency measure of the greenback's value, rose, heading for the first gain in four sessions, after the business-backed Conference Board in New York said consumer sentiment declined this month. The dollar index gained 0.4% today. The dollar index dropped by 6.4% in the second quarter and is lower by 1% on a y-t-d basis.
The Conference Board reported on Tuesday, 30 June, 2009 that reading on U.S. consumer confidence relapsed in June, falling to 49.3 from a slightly downwardly revised 54.8 in May. After a large confidence jump in May, consumers once again grew more pessimistic in June about their present and future. The present situation index declined to 24.8 in June from 29.7 in May, while the expectations index fell to 65.5 from 71.5.
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 158 (1.08%) at Rs 14,451 per 10 grams. Prices rose to a high of Rs 14,624 per 10 grams and fell to a low of Rs 14,407 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 432 (1.93%) lower at Rs 21,924/Kg. Prices opened at Rs 22,405/kg and fell to a low of Rs 21,817/Kg during the day's trading.
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FIIs continue buying
Inflow of Rs 397.20 crore on 29 June 2009
Foreign institutional investors (FIIs) bought shares worth a net Rs 397.20 crore on Monday, 29 June 2009, much lower than 672.90 crore on Friday, 26 June 2009.
FII inflow of Rs 397.20 crore on 29 June 2009 was a result of gross purchases Rs 2,388.10 crore and gross sales Rs 1,990.90 crore. The BSE Sensex rose 21.10 points or 0.14% to 14,785.74 on that day.
FII inflow in June 2009 totaled Rs 2,996 crore (till 29 June 2009). FII inflow in calendar year 2009 totaled Rs 24,315.40 crore (till 29 June 2009).
There are a total of 1668 foreign funds registered with the Securities & Exchange Board of India (Sebi).
Crude pares early gains
Crude registers highest quarterly gain in nineteen years
Crude prices ended lower at Nymex on Tuesday, 30 June, 2009. Prices fell today as consumer confidence in US showed unexpected drop for last month. Despite the drop, crude registered highest quarterly gain since 1990.
On Tuesday, crude-oil futures for light sweet crude for August delivery closed at $69.89/barrel (lower by $1.6 or 2.2%). During intra day trading, crude rose to a high of $73.38/barrel. Last week, crude ended lower by 1.2%.
For the month of June, 2009, crude ended higher by 5.5%. In May, crude had registered the largest monthly gain in a decade rising 30%. For the second quarter, crude ended higher by 40%. It was the largest quarterly gain for crude since Saddam Hussain's invasion of Kuwait in 1990's third quarter. Prices rallied in second quarter due to supply concerns and weak dollar. It had rallied 11.3% in the first quarter of 2009.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 53.3% since then. Year to date, in 2009, crude prices are higher by 57%.
The Conference Board reported on Tuesday, 30 June, 2009 that reading on U.S. consumer confidence relapsed in June, falling to 49.3 from a slightly downwardly revised 54.8 in May. After a large confidence jump in May, consumers once again grew more pessimistic in June about their present and future. The present situation index declined to 24.8 in June from 29.7 in May, while the expectations index fell to 65.5 from 71.5.
Also at the Nymex on Tuesday, July reformulated gasoline lost 2% to $1.8972 a gallon, while July heating oil fell 3.7% to $1.718 a gallon. The gasoline and heating oil contracts expired today.
August natural-gas futures also fell, down 2.8% to stand at $3.835 per million British thermal units. Natural gas gained 1.6% in the second quarter.
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 3,344/barrel, lower by Rs 105 (3.04%) against previous day's close. Natural gas for July delivery closed at Rs 186/mmbtu, lower by Rs 6.4/mmbtu (3.3%).
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