Tata Steel July 2009 futures at huge discount

Turnover drops

Nifty July 2009 futures were at 4333.55, at a discount of 15.30 points as compared to the spot closing of 4348.85. Turnover in NSE's futures & options (F&O) segment was Rs 52,918.55 crore, lower than Rs 55,613.06 crore on Wednesday, 1 July 2009.

Tata Steel July 2009 futures were at huge discount at 399.90 compared to the spot closing of 420.40.

Oil & Natural Gas Corporation July 2009 futures were at premium at 1129.20 compared to the spot closing of 1126.60.

Reliance Infrastructure July 2009 futures were near spot price at 1253 compared to the spot closing of 1252.85.

In the cash market, the S&P CNX Nifty rose 7.95 points or 0.18% at 4348.85.

Asian markets awaits US non-farm payroll data

Nikkei, New Zealand continue losing while Sensex, Shanghai add up more gains

Stock market in Asian region closed mixed on Thursday, 2 July 2009, with the overnight surge on Wall Street and renewed hopes of an economic revival prompting investors to go in for some selective buying. Towards the end, the mood has turned a bit cautious in most of the markets as investors prepare for more news on the U.S. economy.

On Wall Street, the major indices closed modestly higher but off their highs of the session Wednesday as investors greeted a new quarter and a whirlwind of economic data ahead of the government's June employment report.

The new quarter kicked off with a new round of economic data. First, ADP estimated that there were 473,000 jobs lost in the private sector in June. However, job losses were down from a downwardly revised 485,000 in May and also marked the least number of estimated jobs lost since October 2008. ADP's report comes ahead of the government's unemployment data which is expected to show unemployment rose to 9.6% on Thursday.

Meanwhile, the National Association of Realtors said pending home sales increased by 0.1% in May, after an upwardly revised 7.1% increase the month prior.

Also, the Institute for Supply Management said its manufacturing index rose to 44.8 in June from 42.8 the month prior, although any figure less than 50 still represents a contraction.

The Dow Jones Industrial Average added 57.06 points, or 0.7%, to 8504.06, while the S&P 500 climbed 4.01 points, or 0.4%, to 923.33. The Nasdaq Composite tacked on 10.68 points, or 0.6%, to 1845.72.

In the commodity market, crude oil fell for a third day before a report forecast to show the U.S. unemployment increased last month, signaling the world’s largest energy user remains mired in recession.

Crude oil futures fell off earlier gains, ultimately losing 58 cents, to settle at $69.31 a barrel, after the Energy Department's Energy Information Administration reported that gasoline and distillate inventories increased more than expected last week. That overshadowed a report by The American Petroleum Institute late Tuesday that said U.S. crude inventories dropped by 6.8 million barrels last week, helping crude oil futures to rebound early Wednesday, gaining more than $1.50 before it moved into negative territory.

U.S. fuel demand in the four weeks ended June 26 fell 5.8 percent from a year earlier, while demand for distillate fuel including heating oil and diesel, fell 9.4 percent, according to a Department of Energy report yesterday.

Crude oil for August delivery fell as much as $1.14, or $1.64, to $68.17 a barrel in electronic trading on the New York Mercantile Exchange. It traded $68.23 at 10:41 a.m. London time.

Brent crude oil for August settlement declined as much as $1.09, or 1.6 percent, to $67.70 a barrel on London’s ICE Futures Europe exchange. It was at $67.97 a barrel at 10:38 a.m. in London.

Gold declined in Asian trading as a gain in the dollar curbed the precious metal’s appeal as an alternative investment. Gold for immediate delivery fell 0.3 percent to $938.11 an ounce at 3:16 p.m. in Singapore.

In the currency market, US dollar recovers strongly on supportive comments from China again but after all, financial markets are generally indecisively mixed ahead of key events of ECB rate decision and US Non-Farm Payroll report today.

The Japanese yen steady against major currencies on Wednesday Thursday. The Japanese currencies were quoted at 96.48 against the US dollar, down from Wednesday’s quote of 96.77-79 yen

The Hong Kong dollar was trading at HK$ 7.7501 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 closed weaker on Thursday after the nation recorded its largest trade deficit in 10 months. At the local close, the dollar was trading at $US0.8028, down from Wednesday's close of $US0.8062. During the local session, the unit moved between $US0.8095 and $US0.8030.

In Wellington trades, the New Zealand dollar was testing support at US63.80c late today with dealers citing Fonterra's latest Internet auction as a factor. The NZ dollar was US63.79c at 5pm from US64.44c at the same time yesterday. It fell during the Wednesday night session and traded in a range between US63.79c and US64.16c during the domestic session, ending at the bottom of the range.

Reversing earlier gains, the South Korean won ended at 1,269.5 won against the greenback, down 1.8 won from Wednesday's close, as importers snapped up the dollar to cover debts. In early trading, the Korean won rose to as high as 1,257.5 won to the dollar on reports that South Korea's foreign exchange reserves rose to a nine-month high in June

The Taiwan dollar weakened against the greenback. The Taiwan dollar fell against the US dollar as it was trading lower at NT$ 32.8210, down by NT$ 0.0360 from Wednesday’s close of NT$32.7850.

Coming back in equities, Asian shares ended mostly lower, with investors locking in profits ahead of U.S. jobs data due out later in the day.

In Japan, the stock erased early gains on cautious ahead of the release of the key U.S. non-farm payroll report that could shed light on the pace of recovery in the world's largest economy. At the closing bell, the Nikkei 225 Stock Average index erased 63.78 points, or 0.64%, to 9,876.15, while the broader Topix index fell 4.28 points, or 0.5%, to 924.

On the economic front, the Ministry of Finance said Japanese investors purchased a net 1.533 trillion yen in foreign bonds and also a net 150.5 billion yen worth of foreign stocks for the week ending June 27. Foreign investors sold a net 195.1 billion yen in Japanese stocks and also sold a net 666.7 billion yen in Japanese bonds last week.

The Bank of Japan said the monetary base in Japan expanded by 6.4% on year in June to standing at 93.639 trillion yen. The seasonally adjusted monetary base fell an annual 8.8% to 94.448 trillion yen. For the second quarter, the monetary base was up 7.5% on year.

In Mainland China, stock index spurted with gains in financials and energy as China’s manufacturing added to signs the global recession is easing and hopes record bank lending will revive the world’s third-largest economy and on report power demand in the nation’s manufacturing hub of Guangdong rose in June. Resources related shares zoomed on higher commodities prices

The Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, added 1.73%, or 52.1 points, to 3,060.25, while the Shenzhen Component Index rose 1.03%, or 121.97 points, to 11,970.72.

In Hong Kong, the stock market tumbled on first trading day of the third quarter, 2 July 2009, reversed morning gains, with losses from financials and properties as investors prompted for profit booking amid cautious ahead US non-farm payrolls tonight and second-quarter earnings season looms. The Hang Seng Index retreated 200.68 points, or 1.09%, to 18,178.05, while the Hang Seng China Enterprise Index leaped 9.28 points, or 0.08%, to 10,971.89.

In Australia, the Australian stock market pared back morning gains to finish the session higher, despite a positive lead from Wall Street, as gains from miners and resources were offset by losses from energy shares. At the closing bell, the benchmark S&P/ASX200 index added 3.3 points, or 0.09%, to 3,877.3, meanwhile the broader All Ordinaries rose 2.9 points, or 0.07%, to 3,875.2.

On the economic front, the Australian bureau of statistic said in a repot that Australia’s May Trade Balance plummeted to a deficit of A$556 million from a negatively revised deficit of A$282 million in April, performing five times worse than that which was expected as exports of coal, wheat and natural gas fell. Imports fell 4% to A$20.95 billion in May. Imports of capital goods, such as trucks and machinery, dropped 14% and imports of consumer goods slipped 1%. Exports declined 5% from April to A$20.39 billion.

In New Zealand, equities on the New Zealand stock market ended weak. The benchmark index registered its second consecutive decline in a row. The NZX50 ended down 0.44% or 12.18 points to 2768.19. The NZX 15 declined 0.67% or 34.07 points to close at 5086.57.

On the economic front, a 13.5 percent increase in the price of sawn timber in June helped counter a 3.3 percent decline in dairy prices in the ANZ Commodity Price Index .The ANZ Commodity Price Index increased 0.2 percent in June from the month earlier. This is the fourth consecutive monthly rise in the index. However, the index is down 27.9 percent on June last year.

In South Korea, stocks closed lower as investors await the release of U.S. job data for clues about an economic recovery. After volatile trading, the benchmark Korea Composite Stock Price Index (KOSPI) edged down 0.18 point to 1,411.48.

In Singapore, the stocks shrugged off early high as investors selling for profit on cautious ahead of nation’s PMI data for June and ahead US non-farm payrolls tonight and second-quarter earnings season looms. The blue chip Straits Times Index melted 31.73 points, or 1.35%, to 2,320.82.

In Taiwan, stock market consolidated its recent gains as it moved ahead for third straight session, led by gains in major LCD makers after stronger demand from China. Gains were also supported by the intensified efforts by the Financial Supervisory Commission (FSC) to strengthen cross-Taiwan Strait economic and financial exchanges; it decided to allow local financial institutions to offer wealth-management services to Chinese mainlanders.

The main Taiex share index carried its winning streak in third session as the Taiex index stepped up 88.56 points or 1.35%, closing the day at 6667.53, strongest closing since last 6 June 2009 when market closed at 6856.74.

In Philippines, the stock market rallied for the first time in the week, scaled up by gains in the index linked counters as investors sentiments was enhanced by the gains in Wall Street overnight. At the concluding bell, the benchmark index PSEi increased 0.21% or 5.15 points to 2,438.04, while the All Shares index fell 0.29% or 4.70 points to 1,562.47.

In India, the key benchmark indices provisionally ended with small losses in what was a choppy trading session. Fears the government may make dividend taxable in the hands of shareholders weighed on investors sentiment after the finance ministry's annual economic survey suggested a rationalization of the dividend distribution tax.

Suggesting sweeping tax reforms, the Economic Survey released ahead of Monday's (6 July 2009) budget announcement for the fiscal year ending in March 2010, asked for rationalising the dividend distribution tax (DDT) so that dividend is taxed in the hands of receiver. As per the current dispensation, a company pays tax on dividend declared to shareholders, which is called dividend distribution tax. The dividend is tax-free in shareholders hand.

The survey also called for a review and phasing out of surcharges, cesses and transaction taxes such as commodities transaction tax (CTT), securities transaction tax (STT) and fringe benefit tax (FBT).

The Economic Survey said economy could grow around 7% in the year ending March 2010 if the US economy recovers by September 2009. It further said economy could return to 8.5-9% growth in medium terms if reforms are pursued. It said government should free diesel and petrol prices at the earliest. The report said government should take advantage of the recent low price in oil costs to free petrol and diesel prices.

The Economic Survey has called for introduction of standardized credit default swaps on exchanges subject to strict contols, introduction of exchange traded derivatives such as interest rates swaps, foreign direct investment in multi format retail starting with food retail, raising foreign equity share in insurance to 49%, rationalising dividend distribution tax and revival of disinvestment plan to generate at least Rs. 25,000 crore annually. The survey has also called for reforms in petroleum, fertilizers, food subsidies to reduce leakages, ensure targeting. The survey also called for an auction of third-generation mobile phone spectrum.

It also called for implementation of a goods and services tax (GST) by April 2010 to maximise revenues and simplify the tax regime. It also called for "greater urgency" to removing hurdles to investment in infrastructure by government and the private sector. The survey said inflation is no longer a worry and called for an urgent return to the targeted fiscal deficit of 3%.

The survey said it be challenging to fund $500 billion of planned spending on roads and power plants over five years as the economic slowdown and the global financial crisis have made it difficult to raise funds

The survey has also called for passage of pending bills on pension, insurance and forward contract reforms. The BSE 30-share Sensex closed up 13.02 points or 0.09% to 14,658.75. The S&P CNX Nifty ended higher 7.95 points or 0.18% to 4,348.85.

Elsewhere, Malaysia's Kula Lumpur Composite index went down 0.06% or 0.69 points to 1078.71 while Indonesia’s Jakarta composite index ended the day higher at 2065.75.

In other regional market, European shares fell in early trading Thursday as investors awaited an interest-rate decision from the European Central Bank with crucial U.S. jobs data also on tap. At the regional level, the German DAX index dropped 1.69% or 82.64 points to 4,823, while the French CAC-40 index declined 1.32% or 42.57 point to 3,174 and the U.K.’s FTSE 100 index fell 0.85% or 37.09 point to 4,304.

Looking forward, the focus of the day will be on ECB rate decision and US Non-Farm Payroll report today. ECB is widely expected to leave benchmark interest rates unchanged at 1.00% today. From US, markets will expect the release of regular initial jobless claims and factory orders in addition to non-farm payrolls.

Disinvestment

Disinvestment

Fuel Price Hike

Fuel Price Hike

India Budget Expectations

India Budget Expectations

Adani Enterprises

Adani Enterprises

BSE Bulk Deals to Watch - July 2 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
2/7/2009 524412 AAREY DRUGS SHAISHIL TUSHAR KUMAR JHAVERI B 32000 37.13
2/7/2009 524412 AAREY DRUGS HARISH RATILAL SHAH B 30000 37.00
2/7/2009 524412 AAREY DRUGS AJITBHAI PADMAKUMAR VASA B 30000 36.96
2/7/2009 524412 AAREY DRUGS PATEL NITABEN SHAILESHBHAI B 65000 37.27
2/7/2009 524412 AAREY DRUGS NIKHILBHAI VINAKANTBHAI SHAH B 32000 37.15
2/7/2009 524412 AAREY DRUGS SHAISHIL TUSHAR KUMAR JHAVERI S 32000 37.15
2/7/2009 524412 AAREY DRUGS HARISH RATILAL SHAH S 30000 37.25
2/7/2009 524412 AAREY DRUGS AJITBHAI PADMAKUMAR VASA S 30000 37.30
2/7/2009 524412 AAREY DRUGS DAXABEN VASANTKUMAR SHAH S 25961 37.04
2/7/2009 524412 AAREY DRUGS NITA BANKESH BHAVSAR S 31763 37.04
2/7/2009 531223 ANJANI SYNTH MANGILAL B. BURAD B 110861 34.79
2/7/2009 531223 ANJANI SYNTH SAGAR TEX CREATION PVT.LTD B 85863 33.53
2/7/2009 531223 ANJANI SYNTH MANGILAL B. BURAD S 111862 34.09
2/7/2009 532914 ARCOTECH LTD TEJINDER SINGH S 600000 3.00
2/7/2009 532406 AVANTEL LTD* AVANTEL LIMITED B 35688 48.50
2/7/2009 532406 AVANTEL LTD* AMAR INVESTMENTS LIMITED S 29188 48.50
2/7/2009 532995 AVON CORP BASMATI SECURITIES PVT LTD B 105000 9.01
2/7/2009 532995 AVON CORP S V ENTERPRISES B 172800 9.07
2/7/2009 532995 AVON CORP S V ENTERPRISES S 143721 9.01
2/7/2009 500446 CAROL INFO BHARAT JAYANTILAL PATEL B 181190 55.01
2/7/2009 531682 CAT TECHNOL S V ENTERPRISES B 205094 7.17
2/7/2009 531682 CAT TECHNOL S V ENTERPRISES S 210600 7.61
2/7/2009 532696 EDUCOMP SOLN OPG SECURITIES P LTD B 134227 4303.01
2/7/2009 532696 EDUCOMP SOLN OPG SECURITIES P LTD S 134227 4304.23
2/7/2009 509709 INTERN CONVE R C A LIMITED B 20658 267.75
2/7/2009 509709 INTERN CONVE KEDCO PROCESSORS PRIVATE LIMITED S 20000 267.53
2/7/2009 532705 JAGRAN PRAK INDEPENDENT NEWS MEDIA INVESTMENTS LIMITED S 4500000 67.39
2/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 90204 52.15
2/7/2009 516078 JUMBO BAG LT CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 50511 52.40
2/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 82862 51.73
2/7/2009 516078 JUMBO BAG LT CHIMANLAL MANEKLAL SECURITIES PVT.LTD S 43811 51.75
2/7/2009 531602 KOFF BR PICT DIPESH SURESH JAIN S 455658 3.64
2/7/2009 512559 KOHINORFOODS SAMRIDHI SHARE AND STOCK BROKER LIMITED B 135000 50.50
2/7/2009 512559 KOHINORFOODS MLJ CAPITAL SERVICES LTD. B 135000 50.50
2/7/2009 512559 KOHINORFOODS NEWMECH VYPAAR PRIVATE LIMITED B 165000 50.50
2/7/2009 512559 KOHINORFOODS TEMPTATION FOODS LTD S 500000 50.50
2/7/2009 531731 KUVAM INTL SEEMA GANDHI B 27000 8.73
2/7/2009 531731 KUVAM INTL AMRIT LAXMICHAND GANDHI B 25000 8.73
2/7/2009 531731 KUVAM INTL SAHIL SINGLA S 20000 8.73
2/7/2009 526263 MOLDTEK TECH SUNIDHI SECURITIES & FINANCE LTD. S 19661 85.00
2/7/2009 500304 NIIT LTD TRANSGLOBAL SECURITIES LTD. B 1047432 72.05
2/7/2009 500304 NIIT LTD TRANSGLOBAL SECURITIES LTD. S 1047932 72.07
2/7/2009 532497 RADICO KHAIT CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED B 1225000 79.99
2/7/2009 532497 RADICO KHAIT HSBC GLOBAL INVESTMENT FUNDS MAURITIUS LIMITED S 1211485 80.00
2/7/2009 531952 RIBA TEXTILE PATEL NITABEN SHAILESHBHAI B 74545 54.36
2/7/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PVT LTD S 34750 54.89
2/7/2009 531952 RIBA TEXTILE SHAISHIL TUSHAR KUMAR JHAVERI S 43000 53.91
2/7/2009 533083 RISHABHDEV JMP SECURITIES PVT LTD B 87894 22.87
2/7/2009 533083 RISHABHDEV AMIT SAHITA FINANCE PVT. LTD. B 109212 23.23
2/7/2009 533083 RISHABHDEV JMP SECURITIES PVT LTD S 75457 23.70
2/7/2009 533083 RISHABHDEV AMIT SAHITA FINANCE PVT. LTD. S 110212 23.27
2/7/2009 512048 SPLASH MEDIA LAKSHMI DEVI B 10000 87.80
2/7/2009 512048 SPLASH MEDIA BHANUMATI DHARAMRAJ GIRI S 17790 87.92
2/7/2009 532249 SQL STAR INT CHIRAAYUSH STOCK CONSULTANTS PVT LTD S 117830 11.44
2/7/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD B 89935 58.38
2/7/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 81522 58.46
2/7/2009 526133 SUPERTEX IND PATEL SHAILESH SOMABHAI S 69000 58.27
2/7/2009 532156 VAIBHAV GEM AMIT BUSINESS PVT LTD B 149500 21.25
2/7/2009 532156 VAIBHAV GEM SIDHANT FINANCIAL SERVICES PVT LTD S 149500 21.25

NSE Bulk Deals to Watch - July 2 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
02-JUL-2009,AHMEDFORGE,Ahmednagar Forgings Ltd,RAPID ESTATES PRIVATE LTD,BUY,174000,51.46,-
02-JUL-2009,APTECHT,Aptech Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,290957,178.62,-
02-JUL-2009,AUROPHARMA,Aurobindo Pharma Ltd.,HSBC INVEST (HK) LTD A/C HGIF INDIA EQUITY FUND,BUY,1417000,460.00,-
02-JUL-2009,CAROLINFO,Carol Info Services Limit,Bharat Patel,BUY,295459,55.07,-
02-JUL-2009,CAROLINFO,Carol Info Services Limit,Gandiv Investment Pvt Ltd,BUY,111353,55.00,-
02-JUL-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,BUY,190813,4292.50,-
02-JUL-2009,EVERONN,Everonn Systems India Lim,BHARAT SECURITIES PVT LTD,BUY,87717,431.13,-
02-JUL-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,BUY,315924,440.32,-
02-JUL-2009,EVERONN,Everonn Systems India Lim,MULTIPLEX CAPITAL LTD.,BUY,132745,440.26,-
02-JUL-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,3880088,53.69,-
02-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,7893224,21.67,-
02-JUL-2009,NIITLTD,NIIT Limited,OM INVESTMENTS,BUY,1680442,71.76,-
02-JUL-2009,NIITLTD,NIIT Limited,TRANSGLOBAL SECURITIES LTD.,BUY,934213,72.07,-
02-JUL-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1172026,20.59,-
02-JUL-2009,ZYLOG,Zylog Systems Limited,SUNDARAM SMALL CAP FUND,BUY,350000,195.00,-
02-JUL-2009,ZYLOG,Zylog Systems Limited,SUNDARAM SMILE FUND,BUY,150000,195.00,-
02-JUL-2009,AHMEDFORGE,Ahmednagar Forgings Ltd,MSR MARKETING PRIVATE LTD,SELL,174000,51.46,-
02-JUL-2009,APTECHT,Aptech Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,290757,178.59,-
02-JUL-2009,AUROPHARMA,Aurobindo Pharma Ltd.,STANDARD CHARTERED PRIVATE EQUITY (MAURITIUS) LIMITED,SELL,643745,460.16,-
02-JUL-2009,AUROPHARMA,Aurobindo Pharma Ltd.,STANDARD CHARTERED PRIVATE EQUITY(MAURITIUS)LIMITED-FDI A/c,SELL,801839,460.02,-
02-JUL-2009,CAROLINFO,Carol Info Services Limit,Bharat Patel,SELL,101708,55.00,-
02-JUL-2009,CAROLINFO,Carol Info Services Limit,Gandiv Investment Pvt Ltd,SELL,261353,55.04,-
02-JUL-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,SELL,190813,4293.80,-
02-JUL-2009,EVERONN,Everonn Systems India Lim,BHARAT SECURITIES PVT LTD,SELL,87717,431.29,-
02-JUL-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,SELL,315924,440.83,-
02-JUL-2009,EVERONN,Everonn Systems India Lim,MULTIPLEX CAPITAL LTD.,SELL,132745,440.88,-
02-JUL-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,3864327,53.73,-
02-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,7269711,21.66,-
02-JUL-2009,JAGRAN,Jagran Prakashan Limited,INDEPENDENT NEWS & MEDIA INVESTMENTS LIMITED,SELL,8450000,69.89,-
02-JUL-2009,NIITLTD,NIIT Limited,OM INVESTMENTS,SELL,1682042,71.81,-
02-JUL-2009,NIITLTD,NIIT Limited,TRANSGLOBAL SECURITIES LTD.,SELL,937652,72.15,-
02-JUL-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1152023,20.51,-
02-JUL-2009,ZYLOG,Zylog Systems Limited,ADITICON SERVICES INDIA PVT LTD,SELL,201400,195.01,-

Post Session Commentary - July 2 2009

The domestic market today took a sharp turn after the posting good gains yesterday, to close on flat note on profit booking. Depressing US index futures along with negative European markets fueled the negative sentiments. The market was extremely volatile on as the investors were eyeing the outcome of the Economic Survey report, which gave emphasis on the disinvestment of the PSUs as well as decontrolling of fuel prices, tax cuts and phasing out of cesses and surcharge on taxes, etc. However, the Benchmark indices were under pressure also on concerns ahead of forthcoming Union Budget on 6th July. Worries for inflation also contributed to instability as it remained in negative terrain for third successive week. The wholesale price index fell to minus 1.30% for the week ended June 20, as compared to minus 1.14% of the previous week June 13. However, market bounced back during mid session but were unable to hold the momentum and slipped again. BSE Sensex ended around 14,650 level and NSE Nifty around 4,350 mark.

The market opened on positive note tracking favorable cues from the global markets. The US stocks markets ended higher on Wednesday but off highs following a barrage of economic reports. The ISM Manufacturing Index for the month of June came in-line at 44.8, from 42.8 in May, slightly higher than expected. However, Indian market gave up all early gains soon after start and turned volatile. Investors were concerned for inflation as it continued to hold negative territory and stood at minus 1.30% for the week ended June 20. Further, the benchmark indices rebounded from its lows to witness sharp gains though they slipped later with negative European markets and lower US index futures. Market came off from day’s high also on announcement of the Economic Survey. Finally market concluded the extremely volatile session on flat note. Meanwhile, the government yesterday hiked the petrol prices by Rs 4 per litre and diesel by Rs 2 per litre effective from midnight in order to cut the losses of oil companies due to rising global oil rates. However, the government kept the prices of Kerosene and LPG unchanged. From the sectoral front, Metal, PSU, Reality, Pharma and Consumer Durables stocks witnessed most of the buying. Mid Cap and Small Cap stocks also remained on buyer’s radar. However, Capital Goods, Auto and Teck stocks remained out of favour.

The Economic Survey for 2008-09, which was released today, stated that the government should sell a minimum stake of 10 per cent in all the unlisted public sector enterprises and "auction" those that can''t be revived. It also recommended a disinvestment target of Rs 25,000 crore annually. The Economic Survey for financial year 2009 stated 100% FDI in health and weather insurance, disinvestment target of Rs 25,000 crore per year, removed Commodity Transaction Tax, Securities Transaction Tax, and Fringe Benefit Tax, etc. Moreover, the survey suggested tax cuts as well as increase in government expenditure as part of another stimulus package to boost the economy. Besides this, the government should phase out all cesses and surcharges on taxes and securities transaction tax, fringe benefit tax and introduce a new income tax code, the Economic Survey said. On the top of this, decontrol the petrol and diesel prices to take the advantage of low inflation and global crude prices, the Economic Survey said.

Among the Sensex pack 15 stocks ended in green territory and 15 in red. The market breadth indicating the overall health of the market remained positive as 1459 stocks closed in green while 1141 stocks closed in red and 92 stocks remained unchanged in BSE.

The BSE Sensex closed marginally higher by 13.02 points at 14,658.49 and NSE Nifty ended slightly up by 7.95 points at 4,348.85. BSE Mid Caps closed with gains 16.76 and 42.82 points at 5,144.27 and 5,800.24 respectively. The BSE Sensex touched intraday high of 14,764.35 and intraday low of 14,469.69.

Gainers from the BSE Sensex pack are ONGC Ltd (7.02%), Tata Steel (6.37%), Grasim Industries (4.20%), Sterlite Industries (3.75%), DLF Ltd (3.12%), Sun Pharma (2.46%), HDFC (2.33%), NTPC Ltd (2.17%), Tata Power (2.04%), Reliance Infra (1.56%) and Hindalco (1.38%).

Losers from the BSE Sensex pack are BHEL (3.03%), Reliance (2.29%), Bharti Airtel (2.27%), RCom (1.83%), Tata Motors (1.67%), Maruti Suzuki (1.53%), SBI (1.17%), Herohonda Motors (0.96%) and HUL (0.88%).

India’s annual rate of inflation remained in negative terrain for third successive week. The wholesale price index fell to minus 1.30% for the week ended June 20, as compared to minus 1.14% of the previous week June 13, according to official data released on Thursday. However, inflation was 11.91% during the corresponding period of previous year. The index for primary articles increased 0.5%, while for fuel and power rose by 0.1% and manufactured products went up by 0.05%.

On the global markets front the Asian markets which opened before the Indian market, ended mostly mixed. Hang Seng, Nikkei 225, Straits Times index and Seoul Composite closed down by 200.68, 63.78, 31.73 and 0.18 points at 18,178.05, 9,876.15, 2,320.82 and 1,411.48 respectively. However, Shanghai Composite closed up by 52.10 points at 3,060.25.

European markets, which opened after the Indian market, are trading in red. In Frankfurt the DAX index is trading lower by 68.33 points at 4,837.11 and in London FTSE 100 is trading down by 31.16 points at. 4,309.55.

The BSE Metal index gained (4.26%) or 355.15 points at 11,243.85 after LMEX, a gauge of six metals traded on the London Metal Exchange, improved 2.9% overnight. Scrips that gained are Tata Steel (6.37%), Jai Corp Ltd (4.93%), Steel Authority (3.77%), Sterlite Industries (3.75%) and Jindal Steel (3.64%).

The BSE PSU index jumped (1.95%) or 156.06 points to close at 8,156.03. Main gainers are Gail India (7.85%), Power Financ (6.57%), Hindustan Copper (4.99%), REC Ltd (4.97%) and Mahanag Tele (4.96%).

The BSE Realty stocks also gained (1.55%) or 51.67 points to close at 3,395.18. Major gainers are Sobha Dev (4.98%), Anant Raj (4.96%), Ansal Infra (3.99%), DLF Ltd (3.12%) and Parsvnath (2.34%).

The BSE Pharma index advanced by (0.84%) or 29.78 points to close at 3,590.24. Gainers are Glenmark Pharma (4.44%), Glaxosmith (2.86%), Sun Pharma (2.46%), Apollo Hos (2.29%) and Orchid Chem (1.43%).

The BSE Capital Goods index decreased by (1.01%) or 130.26 points at 12,770.31. Usha Martin (3.05%), BHEL (3.03%), Areva (2.85%), Alstom Proje (2.45%) and Suzlon Energy (2.34%) ended in negative territory.

The BSE Auto index ended slightly down by (0.91%) or 41.78 points at 4,573.98. Losers are Bajaj Auto (3.10%), Escorts Ltd (2.97%), Apollo Tyre (2.65%), Ashok Leyland (2.11%) and Tata Motors (1.67%).

Metals steel the show

The stock market witnessed strong volatility, swinging 294 points during intra-day trades, as shares gyrated sharply between zones. Taking cue from mixed Asian indices, the Sensex started on a positive note at 14694, but failed to sustain its gains, as a sharp bout of profit-taking pushed the index below 14500 mark to an intra-day low of 14470. While the market remained lacklustre with a negative bias for some time, the Sensex rolled back to the green by mid-noon trades on renewed buying support and surged to an intra-day high of 14764. However, a fresh round of profit-taking towards the fag end saw the Sensex pare its gains and end at 14658, up only 13 points, while Nifty added 7 points to close at 4349.



The market breadth, the number of advancing shares to declining ones, was positive. Of the 2,692 stocks traded on BSE 1,452 stocks advanced, whereas 1,150 stocks declines. Ninety stocks remained unchanged. Of the 13 sectoral indices, BSE Metal gained 3.26%, while BSE PSU, BSE Realty and BSE HC ended at higher levels. BSE CG, BSE Auto, BSE Teck, BSE Bankex and BSE FMCG were the sectoral indices posting losses for the day.



Select heavyweights edged higher on decent buying support. ONGC rose 7.02% at Rs1,126, Tata Steel jumped 6.39% at Rs420.15, Grasim Industries advanced 4.20% at Rs2,401.75, Sterlite Industries added 3.75% at Rs634.10, DLF gained 3.12% at Rs335.75 and Sun Pharmaceutical Industries gained 2.46% at Rs1,145.85. However, select front-line stocks came under selling pressure. Bharat Heavy Electricals was the major loser and lost 3.03% at Rs2,149.90. Reliance Industries declined 2.29% at Rs2,010.15, Bharati Airtel dropped 2.27% at Rs804.10 and Reliance Communications shed 1.83% at Rs293.10.


Over 1.48 crore shares of Ispat Industries changed hands on BSE followed by Satyam Computer Services (1.47 crore shares), Suzlon Energy (1.24 crore shares), NIIT (1.23 crore shares) and Unitech (1.17 crore shares).

ONGC surges in choppy market

The key benchmark indices ended flat in what was a choppy trading session. Fears the government may make dividend taxable in the hands of shareholders weighed on investors sentiment after the finance ministry's annual economic survey survey presented to the parliament suggested a rationalization of the dividend distribution tax.

The BSE 30-share Sensex rose 13.02 points or 0.09%, up close to 190 points from the day's low but off close to 105 points from the day's high. Weak European stocks and lower US index futures weighed on the domestic bourses. Index heavyweight Reliance Industries was weak. But ONGC surged. Metal and realty stocks rose but auto stocks fell.

Wide differences in prices of some side counters such as Sical Logistics, McNally Bharat Engineering, Subex, KEI Industries, IMP Powers in early trade on the two bourses viz. BSE and NSE today created confusion among investors. The prices of these side counters rose sharply in intraday trade on BSE due to relaxation in daily circuit filter of 5%. There was, however, no change in circuit filters in these stocks on NSE. This is unusual because as per the current policy of the two stock exchanges, any changes in daily price bands are done simultaneously by the two exchanges i.e. whenever the price band of a scrips is revised, the change takes effects on both the exchanges on the same day.

BSE later reinstated the 5% circuit filter on these stocks during market hours. It is, however, not known whether trades done at prices executed above the 5% circuit filters in these stocks on BSE will be canceled.

Currently, there are four slabs of circuit filters on individual stocks on BSE and NSE. These are 2%, 5%, 10% and 20%. No price band are applicable on scrips on which derivative products are available or scrips included in indices on which derivative products are available

Volatility was high right from the onset of the trading session on the stock market today. The key benchmark indices dropped after a positive start triggered by higher Asian markets. Concerns arising from a glut in share sales weighed on the bourses in early trade. Worries over inflation was another reason for nervousnesses in early trade after the hike in fuel price announced by the government after market hours on Wednesday, 1 July 2009. The market bounced back in mid-morning trade.

The market pared soon after surging to the fresh day's high after the presentation of the annual economic survey by the finance ministry in parliament which suggested a strong push for policy reforms. The market extended losses in afternoon trade. It cut losses later. Volatility was immense in the last one hour of trade.

Suggesting sweeping tax reforms, the Economic Survey released ahead of Monday's (6 July 2009) budget announcement for the fiscal year ending in March 2010, asked for rationalising the dividend distribution tax (DDT) so that dividend is taxed in the hands of receiver. As per the current dispensation, a company pays tax on dividend declared to shareholders which is called dividend distribution tax. The dividend is tax-free in shareholders hand.

The survey also called for a review and phasing out of surcharges, cesses and transaction taxes such as commodities transaction tax (CTT), securities transaction tax (STT) and fringe benefit tax (FBT).

The Economic Survey said economy could grow around 7% in the year ending March 2010 if the US economy recovers by September 2009. It further said economy could return to 8.5-9% growth in medium terms if reforms are pursued. It said government should free diesel and petrol prices at the earliest. The report said government should take advantage of the recent low price in oil costs to free petrol and diesel prices.

The Economic Survey has called for introduction of standardized credit default swaps on exchanges subject to strict contols, introduction of exchange traded derivatives such as interest rates swaps, foreign direct investment in multi format retail starting with food retail, raising foreign equity share in insurance to 49%, rationalising dividend distribution tax and revival of disinvestment plan to generate at least Rs 25,000 crore annually. The survey has also called for reforms in petroleum, fertilizers, food subsidies to reduce leakages, ensure targeting. The survey also called for an auction of third-generation mobile phone spectrum.

It also called for implementation of a goods and services tax (GST) by April 2010 to maximise revenues and simplify the tax regime. It also called for "greater urgency" to removing hurdles to investment in infrastructure by government and the private sector. The survey said inflation is no longer a worry and called for an urgent return to the targeted fiscal deficit of 3%.

The survey said it be challenging to fund $500 billion of planned spending on roads and power plants over five years as the economic slowdown and the global financial crisis have made it difficult to raise funds.

The survey has also called for passage of pending bills on pension, insurance and forward contract reforms.

Meanwhile, data released just ahead of the survey showed inflation declined 1.3% in 12 months to 20 June 2009 compared to fall of 1.14% in the preceding week . Inflation had dipped to negative in early June 2009 for the first time since 1977-78. But inflation for the year through 25 April 2009 was revised upwards to 1.75% from 0.7%.

The government had on Wednesday hiked petrol price by Rs 4 per litre and diesel by Rs 2 per litre.

Meanwhile, corporate India appears to be in a rush to raise funds by share sales to institutional investors. Bajaj Hindusthan (BHL) on Wednesday raised Rs 723 crore through a qualified institutional placement (QIP). 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.

A glut in share sales by companies may keep a lid on share prices in the secondary market. On the flip side, the raising of funds will help corporates finance expansion and reduce debt. But it will result in equity dilution which the stock market normally does not like due to earnings dilution.

European shares were trading lower on Thursday as investors took a cautious stance ahead of the influential US non-farm payroll figures. Commodity stocks fell tracking weakness in crude and metal prices. Key benchmark indices in France, Germany and UK were down by between 0.81% to 1.57%.

Most of the Asian stocks were trading lower today, 2 July 2009. While, Key benchmark indices in Japan, Singapore, Hong Kong and South Korea fell by between 0.01% to 1.09%. The key benchmark indices in China and Taiwan rose by between 1.35% to 1.73%.

Trading in the US index futures indicated Dow could fall 56 points at the opening bell today, 2 July 2009.

US markets shut in the green but off highs yesterday, 1 June 2009 after a barrage of economic reports. The Dow gained 57.06 points, or 0.7%, to 8,504.06. The S&P 500 index rose 4.01 points, or 0.4%, to 923.33. The Nasdaq composite index was up 10.68 points, or 0.6%, to 1,845.72.

In economic news, the June 2009 ISM manufacturing index rose to 44.8 from 42.8 in May 2009, slightly higher than expected. Meanwhile, the ADP employment change report showed more than-expected job losses for June 2009 at 4,73,000 jobs.

The BSE 30-share Sensex rose 13.02 points or 0.09% to 14,658.49. The Sensex opened 48.84 points higher at 14,694.31. At the day's high of 14,764.35, the Sensex rose 118.88 points in early afternoon trade. The Sensex lost 175.78 points at the day's low of 14,469.69 in afternoon trade.

The S&P CNX Nifty gained 7.95 points or 0.18% to 4,348.85. Nifty July 2009 futures were at 4333.55, at a discount of 15.30 points as compared to the spot closing of 4348.85. Turnover in NSE's futures & options (F&O) segment was Rs 52,918.55 crore, lower than Rs 55,613.06 crore on Wednesday, 1 July 2009.

BSE clocked a turnover of Rs 5,972 crore higher than Rs 5,770.71 crore on Wednesday 1 July 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 5,011.18 points or 51.94% in calendar year 2009 as on 2 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 6,498.09 points or 79.62% as on 2 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 funds bought shares worth Rs 163.70 crore on 1 July 2009. Foreign institutional investors (FIIs) bought shares worth a net Rs 3,224.70 crore in the month of June 2009 while their inflow in calendar year 2009 totaled Rs 24,696.10 crore (till 1 July 2009).

Coming back to today's trade, the BSE Metal index (up 3.26%), the BSE PSU index (up 1.95%), the BSE Realty index (up 1.55%), the BSE Healthcare index (up 0.84%), the BSE Consumer Durables index (up 0.44%), the BSE Power index (up 0.28%), the BSE Oil & Gas index (up 0.12%) outperformed the Sensex.

The BSE Capital Goods index (down 1.01%), the BSE Auto index (down 0.91%), the BSE TECk index (down 0.58%), the BSE Bankex (down 0.52%), the BSE FMCG index (down 0.08%), the BSE IT index (up 0.06%), underperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,452 shares rose as compared with 1,141 that fell. 93 shares remained unchanged.

Among the 30-member Sensex pack, 15 fell while rest advanced.

India's largest private sector firm by market capitalisation Reliance Industries (RIL) fell 2.29% to Rs 2,010.15 after the company said on Wednesday, 1 July 2009, it would appeal to the Supreme Court against a ruling that it should enter into a gas supply agreement with former group firm Reliance Natural Resources (RNRL).

RIL had 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. 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 as government hiked petrol and diesel prices yesterday. HPCL and IOCL rose by between 1.51% to 2.73%. BPCL fell 0.11%. Higher fuel prices will reduce underrecoveries at the state-run oil firms on domestic sale of petrol and diesel at a controlled price.

India's largest oil exploration firm by sales ONGC rose 7.02% after company's chairman and Managing Director R. S. Sharma said the company's fuel subsidy burden for the current year will be significantly lower than the previous year, if the crude prices stay around the current level. GAIL India jumped 7.85%.

The current government-controlled fuel pricing regime in India forces state-run producers such as ONGC to partially subsidise state oil marketing companies to sell products at low prices to consumers.

Metal stocks rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 2.9% yesterday, 1 July 2009. Sterlite Industries, Hindustan Zinc, Hindalco Industries, Jindal Steel, Steel Authority of India rose by between 0.67% to 3.77%.

India's largest steel maker by sales Tata Steel rose 6.37% on reports the plans to sell global depositary receipts worth about $600 million.

Auto stocks fell on worries fuel price hike may hamper auto sales. India's top small car maker by sales Maruti Suzuki India fell 1.53%. The company's 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 company announced June 2009 sales figures during trading hours on Wednesday, 1 July 2009.

India's largest tractor maker by sales Mahindra & Mahindra fell 0.27% even as its domestic sales jumped 24% to 22,526 units in June 2009 over June 2008.

India's largest commercial vehicle maker by sales Tata Motors fell 1.67%. Tata Motors on Wednesday reported a 3.91% decline in its total sales to 45,399 units in June 2009 over June 2008.

India's largest bike maker by sales Hero Honda Motors slipped 0.96% despite a 23.7% surge in sales to 3,65,734 units in June 2009 over June 2008.

Healthcare stocks rose after economic survey suggested a decontrol of drug prices. Cipla, Lupin, Sun Pharmaceutical Industries, Piramal HealthCare rose by between 0.09% to 2.46%. The survey suggested removal of price controls on all drugs except on essential drugs which have less than five producers.

IT stocks fell on profit taking after recent a rally in the sector triggered by reports the forthcoming Union Budget may extend the corporate tax holiday enjoyed by export-oriented units and software parks by three more years, as the government looks forward to clearing the air for companies in these segments reeling under a demand slump in key Western markets.

India's second largest software firm by sales Infosys Technologies fell 0.04% even as its American depository receipt (ADR) rose 1.5% on Wednesday.

India's largest software services exporter by sales TCS fell 0.56%. But, India's third largest software services exporter by sales Wipro rose 0.74% even as its ADR fell 0.85% on Wednesday.

Banking stocks edged higher in choppy trade after the economic survey said the government should allow a phased increase in the FDI limit in banks. Voting rights in banks should be aligned with equity holdings, the Survey said

India's largest private sector bank by net profit ICICI Bank rose 0.34% as its ADR gained 4.17% overnight. India's second largest private sector bank by net profit HDFC Bank rose 0.01% as its American depository receipt (ADR) rose 0.96% yesterday, 1 July 2009.

But, India's biggest bank in terms of branch network State Bank of India (SBI) fell 1.17%. 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.

Capital goods stocks fell on profit taking after the recent surge triggered by hopes the government may boost spending on the infrastructure sector. Siemens, Praj Industries, Thermax, Siemens, ABB, Larsen & Toubro, Bharat Heavy Electricals fell by between 0.28% to 3.03%.

Some cement stocks were mixed amid higher dispatches in the month just gone by. Aditya Birla group Grasim Industries rose 4.27% and another group firm UltraTech Cement rose 0.47%. The Aditya Birla Group said on Wednesday cement shipments rose 21.7% to 3.14 million tonnes in June 2009 over June 2008. The group's cement business includes flagship Grasim Industries and unit UltraTech Cement.

Jaiprakash Associates was almost unchanged at close even as cement sales rose 29% at 8.04 lakh tonnes in June 2009 over June 2008. Shree Cement cement rose 0.61% after cement sales rose 28% at 7.78 lakh tonnes in June 2009 over June 2008.

Ambuja Cements fell 0.45% even after company reported on Wednesday its shipments rose 8.2% to 1.59 million tonnes in June 2009 over June 2008.

Telecom firms were weak after the economic survey suggested auctioning radio frequencies for the forthcoming 3G mobile services. Bharti Airtel, Reliance Communications, Idea Cellular fell by between 0.01% to 2.27%.

The survey has also suggested disaggregating spectrum from telecom licence. At present, a pan-Indian telecom licence comes bundled with spectrum. For GSM services, the licence has 4.4 MHz of start-up spectrum while a CDMA operator gets 2.2 MHz of air waves.

The survey also suggested that spectrum should be "traded" freely among telcom firms having licences.

FMCG stocks fell on poor start for the India's annual monsoon. FMCG firms derive substantial revenue from the rural markets. REI Agro, Nestle India, United Breweries, United Spirits, Tata Tea, Hindustan Unilever fell by between 0.14% to 4.41%.

Fertiliser firms rose as economic survey called for reforms in fertilizer sector. GNFC, GSFC, National Fertiliser, Rashtriya Chemical & Fertilisers rose by between 0.12% to 6.55%.

Economic survey suggested removal of pricing controls on fertilizers and converting subsidies to fertiliser producers into subsidies for consumers.

Suagr stocks fell even as economic survey suggested to remove pricing controls on sugars. It also suggested converting subsidies to sugar producers into subsidies for consumers. Bajaj Hindustan, Balrampur Chini and Shree Renuka Sugars fell by between 0.73% to 2.74%.

Retail firms fell even as economic survey suggested foreign direst investment in multi format retail starting with food retail. Pantaloon Retail Vishal Retail, Shopper's Stop fell by between 1.01% to 4.95%.

Shares of companies that run insurance business fell on profit booking after they rose in intraday trade following the Economic Survey's suggestion for hiking foreign direct investment limit in the sector. Bajaj Finserv, Aditya Birla Nuvo and Reliance Capital fell by between 0.32% to 1.28%.

Shares of public sector companies rose after the Economic Survey recommended a disinvestment target of Rs 25,000 crore annually. Hindustan Copper, Power Finance Corporation, Central Bank of India, Mahanagar Telephone Nigam, Bharat Electronics, Chennai Petroleum Corporation and State Trading Corporation of India rose by between 0.13% to 6.5%.

Ispat Industries clocked the highest volume of 1.48 crore shares on BSE. Satyam Computer Services (1.47 lakh shares), Suzlon Energy (1.24 crore shares), NIIT (1.23 crore shares) and Unitech (1.17 crore shares) were the other volume toppers in that order.

Educomp Solutions clocked the highest turnover of Rs 422.09 crore on BSE. Tata Steel (Rs 264.60 crore), Reliance Capital (Rs 235.57 crore), Reliance Industries (Rs 226.56 crore) and ONGC (Rs 216.58 crore) are the other turnover toppers in that order.

Aptech

We recommend a buy in Aptech from a short-term trading perspective. It is evident from the charts of Aptech that after taking support around Rs 60 in early December, the stock has been trending upward. Since then, the stock has been forming higher peaks and higher troughs and has been on an intermediate-term uptrend. In mid-May the stock conclusively broke through a significant resistance level Rs 120 and the 200-day moving average. The stock recently found support at Rs 150 and bounced, resuming the intermediate-term uptrend. We observe that the volumes are high during the advance days of the uptrend. The daily relative strength index (RSI) is rising towards the bullish zone and weekly RSI is hovering in the bullish zone. The weekly moving average convergence and divergence indicator is featuring in the positive territory. Our short-term outlook is bullish on the stock. We expect it to continue its rally until it hits our price target of Rs 197. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 169.

via BL

Pre Session Commentary - July 2 2009

Today domestic markets are likely to open positive today as the Asian markets are trading in northward on the back of phenomenal Chinese official purchasing managers’ index which inclined for the 4th straight month. The index rose to seasonally adjusted 53.2 in June from 53.1 in May. The index reading above 50 indicates expansion in Manufacturing. One could witness a positive gap opening with a firm buying trend across broader level along with an essence of minor volatility.

On Wednesday, domestic markets closed with moderate gains. After a subdued opening the markets turned volatile due to mixed cues from the Asian markets and lack of domestic news. The traders were cautious about the sentiments prevailing in the Asian markets and therefore later during the mid session benchmark indices could not hold its firmness due to profit booking pressures. However the firm northward trend in the European markets thrust the buying sentiment of domestic investors at broader level. Sectors like Realty, Teck, Bankex and Auto gained by 4.25%, 1.56%, 1.33% and 1.26% respectively. BSE Midcap and Smallcap were also in the charm of the day and managed to record gains of 1.01% and 0.30% respectively. The markets are likely to trade positive today.

The BSE Sensex closed up by 151.63 points at 14,645.47 and NSE Nifty ended down by 49.80 points at 4,340.90. BSE Mid Caps closed with gains of 51.17 points 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.

On Wednesday, the US Markets closed in green. The markets openend with phenomenal northward trend however it could not withstand the profit booking pressures. There was a broad based buying sentiment across broader level in the morning trade. The latest ADP report shows a higher-than-expected the 473,000 job losses for the month of June and many traders believe that job losses in tomorrow''s report could exceed the forecasted 363,000 number. May pending home sales data inclined by 0.1% month-over-month and the construction spending during the month of May declined by 0.9%. The June ISM Manufacturing Index recorded in-line at 44.8 indicating a contraction since the Index is below 50. US light crude oil for August Futures delivery declined by 0.8% at $69.35 per barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) gained 57.06 points at 8,504.06 the NASDAQ Composite (RIXF) index gained by 10.68 points at 1,845.72 and the S&P 500 (SPX) inclined by 4.01 points at 923.33.

Today major stock markets in Asia are trading positive. Hang Seng is up by 155.97 points at 18,534.70. Shanghai Composite is up by 27.06 points at 3,035.21. Japan''s Nikkei is trading up by 12.93 points at 9,952.86. Strait Times is low by 9.75 points at 2,342.80. KLSE Composite is flat at 1,079.40.

Indian ADRs ended in green on Wednesday. In the banking space, ICICI Bank was up 4.17% and HDFC Bank was up 0.96%. In the telecom space, Tata Communication was up 2.95% 4 and MTNL was up 1.61%.In the IT space, Satyam Computers was up 4.5%, Infosys was up 1.5%, Patni Computers was up 1.19%, while Wipro was down 0.85%. In other sectors, Tata Motors was up 3.87%, Sterlite Industries was up 1.85% and Dr Reddy''s Labs was up 1.06%.

The FIIs on Wednesday stood as net buyers in equity and net sellers in debt. The Gross equity purchased stood at Rs 2,952.10 Crore and gross debt purchased stood at Rs 133.60 Crore, while the gross equity sold stood at Rs 2,723.20 Crore and gross debt sold stood at Rs 379.40 Crore. Therefore, the net investment of equity and debt reported were Rs 228.90 Crore and Rs (245.80) Crore respectively.

On Wednesday, the partially convertible rupee ended at Rs 47.89/90, flat as compared to its previous close at 47.90/91. The local stock markets kept gyrating the whole trading day.

On BSE, total number of shares traded were 37.39 Crore and total turnover stood at Rs 5,770.71 Crore. On NSE, total number of shares traded was 88.45 Crore and total turnover was Rs 16,660.11 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 838845 with a total turnover of Rs 17,434.22 Crore. Along with this total number of contracts traded in stock futures were 621599 with a total turnover of Rs 17,793.90 Crore. Total numbers of contracts for index options were 862464 with a total turnover of Rs 19,091.13 Crore and total numbers of contracts for stock options were 41263 and notional turnover was Rs 1,293.81 Crore.

Today, Nifty would have a support at 4,369 and resistance at 4,412 and BSE Sensex has support at 14,715 and resistance at 14,882.

SGX Nifty shows positive trend

4,356.0 +16.5

US stocks extend first half yearly gains

Economic reports dominate the day

US stocks extended second quarter gains to the very first day of the new quarter on Wednesday, 01 July, 2009. Stocks traded in the green for the entire day. But it pared some of its gains in the later part of the day. Economic reports dominated the day. Reports showing that contraction in US manufacturing slowed down for the first time in ten months gave investors some reason to cheer about since early trade.

The Dow Jones Industrial Average ended higher by 57 points at 8,504. The Nasdaq Composite Index, ended higher by 11 points at 1,845. S&P 500 ended higher by 4 points at 923.3. During session highs, Dow was up by 124 points.

Eight of the ten sectors registered gains led by consumer staples and utilities sectors.

The consumer staples sector was a strong performer today due to General Mills. Better-than-expected earnings and an upbeat forecast earned shares of GIS their best single-session advance today and also pushed up the sector considerably higher.

The Institute for Supply Management reported on Wednesday, 01 July, 2009 that USA's manufacturing firms contracted at a slower pace in June, 2009. The report stated that the ISM index rose to 44.8% in June below the 45.6% expected by but higher than the 42.8% reading in May. It's the highest reading since last August. Seven of eighteen industries grew in June, led by petroleum, chemicals, plastics, and food.

The ISM bottomed at a 28-year low of 32.9% in December, and has been marching higher steadily since.

Among other reports, construction spending for May decreased 0.9% month-over-month. It was expected to slip 0.6%. Spending in April was revised lower to reflect a 0.6% increase. Also, pending home sales in May increased 0.1% month-over-month. They were expected to be flat after spiking the month before. April pending home sales were revised higher to reflect a 7.1% monthly increase.

In a separate report, the ADP employment report stated on Wednesday, 01 July, 2009 that companies in the U.S. private sector shed 473,000 jobs in June,2009. The report comes one day before the Labor Department reports on changes in the nation's nonfarm payrolls for June. Employment in the service-providing sector in June fell by 223,000. The goods-producing sector declined 250,000, and employment in factories dropped 146,000. Employment in manufacturing has declined for 40 straight months. Large businesses saw employment fall by 91,000. Medium-sized firms declined 205,000, and small firms dropped 177,000.

Barring Sify and Wipro Technologies, all Indian ADRs ended in the green today. ICICI Bank and Tata Motors were the main winners today gaining 4.2% and 3.9% respectively.

Crude prices reversed early gains and ended lower at Nymex on Wednesday, 01 July, 2009. Prices fell today as energy department reported buildup in crude inventories for last week for the first time in five weeks.

On Wednesday, crude-oil futures for light sweet crude for August delivery closed at $69.31/barrel (lower by $0.58 or 0.8%). During intra day trading, crude rose to a high of $71.85/barrel before the release of the report.

In the currency market on Wednesday, the dollar index, a six-currency measure of the greenback's value, rose, fell by almost 0.7% on reports that U.S. private sector shed 473,000 jobs in June,2009. The report comes one day before the Labor Department reports on changes in the nation's nonfarm payrolls for June. As per the report, employment in the service-providing sector in June fell by 223,000. The goods-producing sector declined 250,000, and employment in factories dropped 146,000. The dollar index dropped by 6.4% in the second quarter and is lower by 1.5% on a y-t-d basis.

Tomorrow will again be a day heavy in economic data. The June employment and weekly jobless claims reports are due at 8:30ET. Factory Orders for May will be released at 10:00ET.

Market may extend Wednesday's gains tracking positive Asia

The key benchmark indices may extend Wednesday's (1 July 2009) gains on positive Asia. The investor sentiment may be heightened on expectations of strong reforms in the forthcoming budget after a sudden hike in petrol and diesel prices ahead of the budget yesterday. The Annual economic survey is scheduled to be presented today, 2 July 2009.

India's Finance Minister Pranab Mukherjee will present the economic survey, which states the nation's economic performance during the fiscal year ended March 2009, in parliament. India's wholesale price index (WPI) in the 12 months to 20 June 2009 will be announced by the government today. Inflation based on the wholesale price index declined 1.14% in the year through 13 June 2009. The decline was however, smaller than a 1.61% fall in the year through 6 June 2009. Inflation had dipped to negative in early June 2009 for the first time since 1977-78.

Days before the Union Budget is presented, the government yesterday, 1 July 2009 announced a hike in petrol and diesel prices but left kerosene and LPG prices untouched. The price of petrol has been hiked by Rs 4 a litre while diesel price has been increased by Rs 2 per litre. Terming it an ad hoc price hike, the Union petroleum minister, Mr Murli Deora, said it would be applicable from midnight on 1 July 2009. After the increase, petrol in Delhi will cost Rs 44.62 a litre and diesel Rs 32.86 a litre. Investors expect the Congress party, emboldened by its recent unexpected strong election victory, may soon consider a proposal to end state controls on transport fuel prices, one of many important reforms expected from a government now unshackled from the constraints of its erstwhile Communist partners.

Most of the Asian stocks climbed today as commodity prices rose and on speculation measures taken to stimulate economy are helping to bolster consumer demand. The key benchmark indices in China, Hong Kong, Japan and Taiwan rose by between 0.01% to 1.35%. While, Key benchmark indices in Singapore and South Korea fell by between 0.04% to 0.56%.

US markets shut in the green but off highs yesterday, 1 June 2009 after a barrage of economic reports. The Dow gained 57.06 points, or 0.7%, to 8,504.06. The S&P 500 index rose 4.01 points, or 0.4%, to 923.33. The Nasdaq composite index was up 10.68 points, or 0.6%, to 1,845.72.

In economic news, the June 2009 ISM manufacturing index rose to 44.8 from 42.8 in May 2009, slightly higher than expected. Meanwhile, the ADP employment change report showed more than-expected job losses for June 2009 at 4,73,000 jobs.

Back home, the near-term major trigger for the stock market is the Union Budget 2009-10 on 6 July 2009. The Rail Budget will be presented by Railway minister Mamta Banerjee on Friday, 3 July 2009. As per media reports, another fare cut is unlikely because Lalu Prasad's Interim Railway Budget in February 2009 has already strained the Indian Railways' finances. Lalu Prasad had announced a 2% reduction in passenger fares. Similarly, any increase in freight rates looks unfeasible because of the current economic downturn. With the present economic conditions not providing much scope for either large-scale fare concessions or an across-the-board increase in freight rates, the highlight of the Railway Budget for 2009-10 is likely to be a big push to public-private partnership (PPP) initiatives to enhance the Indian Railways' capacity to earn higher revenues on a sustainable basis.

Many equity analysts have been raising earnings forecasts of India Inc on hopes that the new government will provide thrust on the infrastructure sector and push economic reforms to boost growth. Citigroup expects the economy to grow by 6.8% in the year ending March 2010 (FY 2010) and 7.8% in the year ending March 2011 (FY 2011).

The Union Budget 2009-2010 attains significant importance in the wake of the global financial crisis. Despite the country being relatively unharmed compared to the West, the UPA government will have many tasks on its to-do list, which includes boosting growth and demand, continuing to maintain liquidity, balancing inflation and also containing the country's worrying fiscal situation.

The Government has made its intention clear to push for reforms and pursue the disinvestment agenda, which was met with stiff opposition in the UPA's previous stint when the Left parties were members for a major part of the five-year tenure. The Congress party had in its manifesto released before polls promised to go ahead with disinvestment while retaining a majority holding in the state-run companies. Disinvestment programme was earlier put on backburner due to stiff opposition from the Left front.

Also the passage of the Bill to amend the Insurance Act, 1938 is likely to be touched upon in the budget. Apart from raising the foreign investment ceiling to 49%, from 26% at present, the Bill had proposed to do away with the stipulation on Indian promoters having to mandatorily sell a part of their holdings after 10 years of operation.

With infrastructure bottlenecks plaguing the economy, expectations are rife that the upcoming Budget will provide a big stimulus to this core sector, particularly roads and ports. A big push to Public Private Partnership (PPP) projects in infrastructure may be also on the cards.

For the power sector, the Budget may contain significant increases in spending, including for generation, rural electrification, and for minimising transmission and distribution losses. Other measures which the Budget may announce on infrastructure would be to give greater flexibility to the Infrastructure Investment and Financing Company (IIFCL), which has been set up as a refinancing facility for infrastructure projects, to deploy funds.

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.

Market may resume on a positive note

The market is likely open on a firm note on Wednesday's gains in the US indices and strong Asian markets in morning trades. Major Asian indices like Nikkei, Hang Seng, Kospi, Straits Times and Jakarta Composite are trading with gains of around 1% each. However, caution should be maintained on account of the prevalence of a intra-day volatility. Among the local indices, The Nifty may drift down to 4300 levels. On a break below 4300, the next short-term support is at 4250 and could test higher levels around 4400. The Sensex on the downside may slip to 14500 and may face resistance at 14800.

US indices registered another high on Wednesday, with investors starting off the third quarter on a positive note, after reports on manufacturing and housing added to bets that the pace of the recession is slowing. While the Dow Jones gained by 57 points at 8504, the Nasdaq advanced by 11 points at 1846.

The Indian ADRs witnessed decent to firm buying support on US bourses. Satyam & ICICI Bank were the major gainer amongst the ADRs and vaulted over 4% each, while Tata Motors propelled 3.87%. VSNL, Rediff, Infosys, Dr Reddy, MTNL, Patni Computers and HDFC Bank were up over 1-2% each. Wipro however lost marginallly and closed in negative territory.

The Nymex light crude oil for August series slipped by 58 cents at $69.31 a barrel. In the commodity space, the Comex gold for August delivery rose by $13.90 to settle at $941.30 an ounce.

Daily News Roundup - July 2 2009

RIL plans to move to Supreme Court against KG gas ruling (ET)

Ms.Roshni Nadar, daughter of Mr.Shiv Nadar, has been appointed as the CEO of HCL Group (ET)

Hindalco and its subsidiary, Novelis, are planning to relocate some of its European plants to India (ET)

The Hero Group will decide on the future of its 25-year old JV with Japan’s Honda Motors well before expiry in 2014 (ET)

L&T has received orders worth Rs6.5bn from HPCL-Mittal Energy and MRPL (BS)

Tata Motors and Ashok Leyland may hike truck prices by 2% on high input costs (ET)

IOC plans to invest over Rs600bn to scale-up its refining capacity to 80mtpa by FY12 (BL)

Tech Mahindra to raise stake in Satyam through preferential allotment (ET)

Unitech plans to raise Rs28bn through private placement of shares to institutional investors at Rs81/share (FE)

Government has deferred decision on Unitech Wirelerss’ FDI proposal (BL)

Government has deferred its decision on UB Group’s proposal for raising Rs7bn by issuing convertible warrants to FirStart (BS)

JSW Steel has decided to postpone its investments in iron ore mines in Chile (FE)

HCC raises Rs4.8bn through QIP (BS)

Gammon Infrastructure in consortium with two other firms has bagged orders of Rs5bn from Paradeep Port Trust (FE)

Punj LLoyd subsidiary, Sembawang Engineers, has bagged an order worth Rs12.6bn to construct two key stations in Singapore (ET)

Bajaj Hindustan raises Rs7.2bn via QIP route (ET)

IFCI mulls holding company for banking foray (ET)

Nagarjuna Constructions has bagged orders worth Rs8bn (BS)

Jubilant Organosys subsidiary has been asked by UK Medicine and Health Regulatory Authority to recall various batches of its product, Amlodipine Besilate, from the UK market (FE)

Yes Bank plans to double its branches next year (BS)

Lupin has acquired global rights for intra-nasal steroid product, Aller-Naize (BL)

Government hikes price of petrol by Rs4/litre and diesel by Rs2/litre (ET)

Steel companies may hike prices by 5% this month (ET)

Exports decline by 29% to US$11bn while imports fell by 39.2% to US$16.2bn in May 2009 (ET)

India’s external debt increased by 2.4% to US$230bn in FY09 (ET)

IRDA bars insurance companies from investing in IDRs (ET)

Companies violating ECB norms will not be able to raise fresh overseas loans through the automatic route (ET)

Developers of SEZ will be allowed to raise foreign debt for creating specified infrastructure facility in the zones (ET)

Libya has become third African country to ban import of Indian drugs (BS)

Waiting for Big B-day

You sort of start thinking anything's possible if you've got enough nerve.

World equity markets started a new month and a new quarter on a positive note, with gains being registered across the board. The catalysts were a slew of economic reports that further reinforced a growing view that the worst of the global recession is behind us. Still, a few headwinds like unemployment and bankruptcies are yet to be tackled fully. Global trade remains in a limbo, while recovery in the crucial banking and housing sectors remain sluggish.

Coming to the today’s outlook, the Indian market is likely to extend Wednesday's gains, at least at the start. Things could turn uncertain and sideways afterwards as most players would likely remain restrained ahead of the Railway Budget tomorrow and the Union Budget on Monday. The Economic Survey for FY09 will be presented in the parliament today.

We believe the Budget will be neutral from markets’ perspective. Expectations have been muted and rightly so. No point speculating on a big event like budget. The right approach is to wait for the event to unfold and then take a call. At the same time, one should not be too pessimistic either.

Economic activity across the globe is on a recovery path, though in the mature economies things are still precarious. Back home, mixed signals are coming from the latest data points. Manufacturing sector continues to show encouraging signs, as do the monthly sales volume of auto and cement companies. On the export front though, the gloom persists and is unlikely to end anytime soon. In fact, even inflationary expectations may escalate following the fuel price hike.

Also bear in mind, Wednesday's rally was pretty much restricted to the large caps, while the broader market remained subdued. Market breadth was negative and turnover too was down from the previous day. As far as fund action goes, the FIIs were net buyers while the local institutions chose to lock in some gains.

FIIs were net buyers in the cash segment on Wednesday at Rs1.86bn while the local institutions pulled out Rs763.8mn. In the F&O segment, the foreign funds were net buyers at Rs519.5mn. On Tuesday, FIIs were net buyers at Rs2.29bn in the cash segment.

US stocks rose on Wednesday, spurred by encouraging reports on manufacturing and housing. Eight of 10 industries in the S&P 500 index advanced as the Institute for Supply Management’s (ISM) factory index shrank at the slowest pace in 10 months and home resales increased for a fourth month.

The Dow Jones Industrial Average gained 57 points, or 0.7%. The S&P 500 index rose 4 points, or 0.4%, and the Nasdaq Composite index climbed 11 points, or 0.6%.

US stocks ended an otherwise strong second quarter with losses on Tuesday on a weaker-than-expected consumer confidence report and falling oil prices. But investors resumed their shopping spree on Wednesday after manufacturing and housing reports showed the pace of the economic contraction is easing.

The manufacturing report was driving gains. What is also encouraging is that customer inventories are too low, which could suggest a pickup in production.

Gains were broad based, with 24 of 30 Dow stocks rising. Wall Street is coming off the best quarter in years. The S&P 500 gained 15.2% in the April-through-June period for its best quarter since the last three months of 1998. The Dow rose 11%, posting its best three-month period since the second quarter of 2003. The Nasdaq's 20% gain gave it its best quarter since the second of 2003.

Pending home sales rose 0.1% in May, the National Association of Realtors reported. Economists had forecast a steady number after rising a revised 7.1% in April. It was the fourth straight month of gains.

Manufacturing showed a small improvement in June. The Institute for Supply Management's manufacturing index improved to 44.8 from 42.8 in the previous month. Economists thought it would improve to 44.9.

Employers in the private sector cut 473,000 jobs from their payrolls in June, according to a morning report from payroll services firm ADP. Economists had estimated 394,000 job cuts. The report is seen as a precursor to the more widely watched government employment report due on Thursday.

Another report showed that the number of announced job cuts fell in June for the fifth month in a row. Challenger, Gray & Christmas said that job cuts fell to 74,393, down 33% from May and 9% from a year ago.

Ford Motor said its June sales dropped 11% versus a year earlier, a more modest decline than it has shown in recent months. But Ford was the exception, with most major automakers reporting bigger-than-expected declines as the industry continued to struggle.

General Motors (GM) said its June sales fell 33% from a year ago. The automaker was in bankruptcy court for a second day on Wednesday seeking approval for its restructuring plan. Meanwhile, Chrysler said sales fell 42% in June versus a year ago.

General Mills reported fiscal fourth-quarter profit nearly doubled from a year ago and issued a fiscal 2010 profit forecast that is above analysts' estimates.

AIG shares slumped 22% in the aftermath of its annual meeting on Tuesday, in which shareholders approved a proposal to put into effect a 1-for-20 reverse stock split. The shareholders also ousted the majority of the company's board at the meeting. AIG will remain under government control for the time being.

Energy prices surged, with US light crude oil for August delivery falling 58 cents to settle at $69.31 a barrel on the New York Mercantile Exchange.

COMEX gold for August delivery rallied $13.90 to settle at $942 an ounce.

Treasury prices were little changed, with the benchmark 10-year note yield at 3.53%.

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

European shares started the new month and quarter on an upbeat note, buoyed by sharp gains in metal stocks. The pan-European Dow Jones Stoxx 600 index climbed 1.6% to 209.12, with every sector trading in the green.

The French CAC-40 index gained 2.4% to 3,217.00, the UK's FTSE 100 index rose 2.2% to 4,340.71 and Germany's DAX index advanced 2% to 4,905.44.

Indian markets ended on a high on Wednesday with the NSE Nifty ending above the 4,300 levels. After losing some steam in the previous trading session, bulls were back and the rebound was led by the index heavyweights.

Stocks like DLF, M&M, and Reliance Infra were among the top gainers. The interest rate sensitive stocks along with the Oil & gas and the PSU stocks were in momentum.

Also the Railway, Education and Oil marketing stocks were in the limelight ahead of Union Budget to be presented on July 6, 2009.

The BSE Sensex gained 152 points or 1% to end at 14,645 after touching a high of 14,727 and a low of 14,355. The index had opened at 14,506 against the previous close of 14,494.

The NSE Nifty surged 50 points or 1.1% to shut shop at 4,341.

Asia markets ended in the red; the Nikkei index in Japan slipped 0.3% at 9,939, Australia's S&P/ASX ended lower by 2% to 3,874. Hang Seng index declined 1% at 18,378.

Elsewhere in the Europe, stocks were trading with gains. The FTSE index was up 1.5% at 4,310. The DAX index was up 1.5% at 4,879. CAC 40 index gained 1.8% at 3,195.

Coming back to India, among the BSE Sectoral indices BSE Realty index was the top gainer gaining 4.2%, followed by the BSE Teck index up 1.5%, BSE Bankex index up 1.3% and BSE Auto index up 1.2%.

The BSE Mid-Cap index ended higher by 1.1% and BSE Small-Cap index was up 0.3%.

In the Sensex, the major gainers were DLF, M&M, Reliance Infra, RCom, Tata Motors, Bharti, Sun Pharma and SBI.

On the other hand, major losers were Hindalco, ONGC, ACC, Tata Power and Grasim.

Among the big gainers in the broader market were Bajaj Holding, Areva T&D, Neyveli Lignite, SCI, Ispat Industries and IRB Infra.

Outside the frontline indices, the top losers included REI Agro, Fortis Health, Gujarat NRE, Mphasis, Glenmark, Yes Bank and Exide Industries.

Education stocks were in the demand on reports that the government would increase the outlay on in the Education sector. The government would offer incentives for companies when it announces its budget on July 6.

Educomp Solutions rallied by over 8% to Rs4123, NIIT Ltd. shot up over 14% to Rs70.3, while Aptech Ltd. rose over 10% to Rs177. Shares of Everonn Systems also surged over 9% to Rs448.

Oil marketing companies like HPCL and BPCL and IOC gained by 4% to 6% on hopes that the Union Budget may include a roadmap for decontrolling fuel prices.

Shares of Areva T&D India surged by 8% to Rs363 after its French parent Areva said that it has put the Transmission and Distribution (T&D) division up for sale globally, including the Indian arm.

Currently Areva holds ~72% stake in Areva T&D India. The Indian arm of Areva had net profit of Rs2.26bn on net sales of Rs26.55bn.

Shares of SCI surged by over 7.5% to Rs133 after government announced that it would examine a stake sale in the company. Shipping Corp to acquire 32 vessels in year ending March 31, 2010, says Shipping Secretary.

Shares of Hero Honda ended flat at Rs1398. The company’s June sales rose 23.7% to 3,65,734 units thereby registering its sixth consecutive month of over three lakh sales starting January’09. Hero Honda had sold 2,95,675 units of two-wheelers in June 2008.

Hero Honda’s cumulative sales for the Q1 (April-June) of FY’10 rose by 25.1% to 11,18,987 units of two-wheelers, thereby taking its share in the domestic motorcycle market to an all-time high of 59%. The company’s sales in the corresponding period last year was 8,94,244 units.

TVS Motor gained by 3% to Rs46.4 after the company posted 6% growth in June 2009, registering total two wheeler sales of 115,488 units against 109,082 units in the corresponding period of the previous year. Domestic sales of the company registered a growth of 12% clocking 1,05,361 units in June 2009 as against 94,072 in the corresponding period of the previous year. The company continued its positive growth trend, registering 5% growth for the period April to June 2009.

Maruti Suzuki edged higher by 0.5% to Rs1070. The company sold a total of 75,109 vehicles in June 2009. This includes 13,336 units for export. This is the highest ever monthly export volume in the company’s history.

The company had sold a total of 61,247 vehicles in June 2008.Maruti Suzuki’s volume in the domestic A2 segment grew by 22.2% while in the A3 segment the sales volume grew by 5% during the month as compared to sales in June 2008.

SGX Nifty Live Update - July 2 2009

4,360.5 +21.0

RIL July 2009 futures at premium 2009

Turnover rises

Nifty July 2009 futures were at 4339.40, at a discount of 1.50 points as compared to the spot closing of 4340.90. 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.

Reliance Industries (RIL) July 2009 futures were at premium at 2064 compared to the spot closing of 2058.80.

Unitech July 2009 futures were at premium at 83.20 compared to the spot closing of 82.70.

ICICI Bank July 2009 futures were near spot price at 728.95 compared to the spot closing of 729.85.

In the cash market, the S&P CNX Nifty gained 49.80 points or 1.16% at 4340.90.

FIIs continue buying

Inflow of Rs 228.90 crore on 30 June 2009

Foreign institutional investors (FIIs) bought shares worth a net Rs 228.90 crore on Tuesday, 30 June 2009, lower than 397.20 crore on Monday, 29 June 2009.

FII inflow of Rs 228.90 crore on 30 June 2009 was a result of gross purchases Rs 2,952.10 crore and gross sales Rs 2,723.20 crore. The BSE Sensex lost 291.90 points or 1.97% to 14,493.84 on that day.

FII inflow in June 2009 totaled Rs 3,224.90 crore. FII inflow in calendar year 2009 totaled Rs 24,544.30 crore (till 30 June 2009).

There are a total of 1671 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Drooping dollar bolsters precious metal prices

Drop in holding for gold exchange-traded fund restrict price rise

Precious metal prices rose at USA on Wednesday, 01 July, 2009. Prices added more luster today as the dollar fell following a worse than expected employment report from a private company, a day ahead of the employment report expected from the Labor Department. But at the same, holdings in the biggest gold exchange-traded fund fell for the first session in four, restricting the rise in price.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.

On Wednesday, gold for August delivery ended at $941.3, higher by $13.90 (1.5%) 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 6.4%.

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 Wednesday, Comex silver futures for July delivery rose 16.6 cents (1.2%) at $13.74 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 21.2% this year. For 2008, silver had lost 24%.

In the currency market on Wednesday, the dollar index, a six-currency measure of the greenback's value, rose, fell by almost 0.7% on reports that U.S. private sector shed 473,000 jobs in June,2009. The report comes one day before the Labor Department reports on changes in the nation's nonfarm payrolls for June. As per the report, employment in the service-providing sector in June fell by 223,000. The goods-producing sector declined 250,000, and employment in factories dropped 146,000. The dollar index dropped by 6.4% in the second quarter and is lower by 1.5% on a y-t-d basis.

In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.

At the MCX, gold prices for August delivery closed higher by Rs 98 (0.7%) at Rs 14,549 per 10 grams. Prices rose to a high of Rs 14,581 per 10 grams and fell to a low of Rs 14,415 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 67 (0.3%) higher at Rs 22,131/Kg. Prices opened at Rs 22,000/kg and rose to a high of Rs 22,131/Kg during the day's trading.