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Thursday, July 09, 2009
BSE Bulk Deals to Watch - July 9 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
9/7/2009 524412 AAREY DRUGS KUMKUM STOCK BROKER PVT LTD B 25001 41.55
9/7/2009 524412 AAREY DRUGS NIKHIL VINUKANT SHAH B 25000 42.05
9/7/2009 524412 AAREY DRUGS KUMKUM STOCK BROKER PVT LTD S 25000 42.05
9/7/2009 524412 AAREY DRUGS PATEL NITABEN SHAILESHBHAI S 25000 41.55
9/7/2009 531223 ANJANI SYNTH ARVIND KALYANJI RAMBHIA B 93197 39.44
9/7/2009 531223 ANJANI SYNTH ARVIND KALYANJI RAMBHIA S 93197 39.40
9/7/2009 532696 EDUCOMP SOLN OPG SECURITIES P LTD B 136652 3837.23
9/7/2009 532696 EDUCOMP SOLN OPG SECURITIES P LTD S 136652 3839.64
9/7/2009 532631 FAME INDIA L JAIDEEP HALWASIYA B 206027 18.82
9/7/2009 509597 HARDCAS WAUD VOCATION INV & FIN CO PVT LTD B 8894 212.23
9/7/2009 509597 HARDCAS WAUD JAIKUMAR BOTHRA S 7969 211.88
9/7/2009 532859 HGSL AASIA MANAGEMENT AND CONSULTANCY P LTD B 200000 285.00
9/7/2009 532859 HGSL AASIA EXPORTS S 200000 285.00
9/7/2009 504336 INDTRADECO L SHRENIK J SHAH (HUF) S 820000 0.74
9/7/2009 516078 JUMBO BAG LT ARJUNBHAI HARIBHAI DUBASIA B 40500 60.15
9/7/2009 516078 JUMBO BAG LT ARJUNBHAI HARIBHAI DUBASIA S 40500 60.40
9/7/2009 590003 KARUR VYSYA-PMS INDIA MAX INVESTMENT FUND LTD B 364023 272.00
9/7/2009 590003 KARUR VYSYA-PMS CREDIT SUISSE (SINGAPORE) LIMITED A/C S 364023 272.00
9/7/2009 531602 KOFF BR PICT DIPESH SURESH JAIN S 314792 3.30
9/7/2009 531731 KUVAM INTL SHAILESH PRAVINCHANDRA MEHTA HUF B 20000 10.46
9/7/2009 531731 KUVAM INTL MANISHA PAREKH B 20000 10.46
9/7/2009 531731 KUVAM INTL BHAVESH D PAREKH B 17500 10.46
9/7/2009 531731 KUVAM INTL HIMATLAL JAMNADAS CHANDRA B 20000 10.46
9/7/2009 531731 KUVAM INTL NAMITA DEEPAK GOSAR B 20000 10.46
9/7/2009 531731 KUVAM INTL DHIREN MADHUKAR DESAI B 20000 10.46
9/7/2009 531731 KUVAM INTL DHIRENDRA NARAYANDAS SHAH B 20000 10.46
9/7/2009 531731 KUVAM INTL SANJEEV KUMAR GUTPA S 84200 10.46
9/7/2009 531731 KUVAM INTL KAMLESH GUPTA S 99300 10.46
9/7/2009 511768 MASTER TRUST SHIVALIK SECURTIES LTD B 250000 50.50
9/7/2009 511768 MASTER TRUST GALA FINANCE&INVESTMENT B 250000 50.50
9/7/2009 511768 MASTER TRUST KINOFOLK INDUSTRIES LTD. S 100000 50.50
9/7/2009 511768 MASTER TRUST FOSTER CAPITAL VENTURES LTD S 400000 50.50
9/7/2009 531465 NOUVEA MULTI BHROSEMAND COMMODITIES PVT. LTD. B 83152 21.00
9/7/2009 531465 NOUVEA MULTI JANAKRAY GIRDHARLAL TURAKHIA S 84000 21.00
9/7/2009 531791 NOVGOL PETR NAVIN VIRA B 31324 2.10
9/7/2009 531791 NOVGOL PETR NILESH KRUSHNA PALANDE S 30000 2.10
9/7/2009 590077 RANKLIN SOLU JAYA VEER V. DURGA PRAKASH M. B 42000 33.31
9/7/2009 590077 RANKLIN SOLU VENKATA DURGA PRASAD TADEPALLI S 49475 33.30
9/7/2009 531952 RIBA TEXTILE NIKHIL VINUKANT SHAH B 34702 55.42
9/7/2009 533083 RISHABHDEV PATEL NILIMA B 81276 16.71
9/7/2009 533083 RISHABHDEV Naman Securities & Finance Pvt. Ltd. B 81293 16.94
9/7/2009 533083 RISHABHDEV PATEL NILIMA S 78546 16.89
9/7/2009 533083 RISHABHDEV Naman Securities & Finance Pvt. Ltd. S 79293 17.00
9/7/2009 526753 ROSELABS LTD SINGHAL OVERSEAS LIMITED S 97796 11.00
9/7/2009 506460 SI GROUP DUETSCHE TRUSTEE SERVICES INDIAPVTLTD AC DWS MONEY PLUS ADV. FUND B 381004 69.17
9/7/2009 531249 WELL PACK PA PURSOTAM SURAJMAL KOTHARI B 23000 161.39
NSE Bulk Deals to Watch - July 9 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
09-JUL-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,BUY,198575,3826.50,-
09-JUL-2009,EDUCOMP,Educomp Solutions Limited,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,BUY,104454,3748.06,-
09-JUL-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,BUY,135990,323.24,-
09-JUL-2009,FAME,Fame India Limited,JAIDEEP HALWASIYA,BUY,177698,18.75,-
09-JUL-2009,HGSL,Hinduja Global Sols Ltd,AASIA MANAGEMENT AND CONSULTANCY P LTD,BUY,200000,285.00,-
09-JUL-2009,KARURVYSYA,Karur Vysya Bank Ltd,INDIA MAX INVESTMENT FUND LTD,BUY,626000,269.90,-
09-JUL-2009,USHAMART,Usha Martin Limited,PRAJEEV INVESTMENTS LTD,BUY,2500000,45.00,-
09-JUL-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,SELL,198500,3828.18,-
09-JUL-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,SELL,135990,323.73,-
09-JUL-2009,HCC,Hindustan Construc Co.,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,3194000,99.28,-
09-JUL-2009,HGSL,Hinduja Global Sols Ltd,AASIA EXPORTS,SELL,200000,285.00,-
09-JUL-2009,KARURVYSYA,Karur Vysya Bank Ltd,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,626000,269.90,-
09-JUL-2009,MANGTIMBER,Mangalam Timber Pro Ltd,IFCI LTD.,SELL,132270,23.00,-
09-JUL-2009,NOIDATOLL,Noida Toll Bridge Company,HDFC INFRASTRUCTURE FUND,SELL,950000,35.96,-
09-JUL-2009,USHAMART,Usha Martin Limited,USHA MARTIN VENTURES LTD.,SELL,2500000,45.00,-
Post Session Commentary - July 9 2009
Final hours selling in selected stocks led the market to close on flat note after reporting gain during the trading session. Indian stocks erased their gains during last trading hours over a possible downgrade of the country''s sovereign evaluation by the rating agencies due to high fiscal deficit. Besides, weak global cues led by fragile data from US market and ease in crude oil prices also weighed on the sentiments. As well, volatility gripped the market on lack of encouraging news from domestic arena. Meanwhile, India’s annual rate of inflation further dropped to minus 1.55 per cent for the week ended 27th June as compared to minus 1.30 per cent of the previous week. BSE Sensex ended below 13,800 level and NSE Nifty closed below 4,100 mark.
The domestic market started the day on flat note and turned choppy soon after start backed by uncertain cues from the global markets. However, the US stocks markets closed flat on Wednesday after a sharp volatile session. The S&P 500 surrendered easily on the back of the auction of $19 billion of 10-year Treasury note which sent the benchmark 10-year bond yield to 3.3% for the first time since May. Indian investors were careful after yesterday’s fall that led market to remain quiet. Further, benchmark indices regained strength in afternoon trade though once again touched the dotted line before once more trimming the losses. To end with, Indian market concluded the today’s instable session flat due to lack of confidence among investors and hesitant global markets. From the sectoral front, Consumer Durable, Capital Goods, IT, Bank and Realty stocks remained out of favour. However, Metal, Pharma and FMCG stocks remained in limelight as witnessed most of the buying from these baskets.
Among the Sensex pack 16 stocks ended in red territory and 14 in green. The market breadth indicating the overall health of the market remained negative as 1462 stocks closed in red while 1078 stocks closed in green and 98 stocks remained unchanged in BSE.
The BSE Sensex closed slightly lower by 11.69 points at 13,757.46 and NSE Nifty ended marginally up by 2.05 points at 4,080.95. BSE Mid Caps closed with gains of 27.95 points at 4,810.79 and Small Caps closed losses of 7.63 points at 5,329.72. The BSE Sensex touched intraday high of 13,879.18 and intraday low of 13,643.97.
Losers from the BSE Sensex pack are Tata Motors (3.15%), ICICI Bank (2.77%), DLF Ltd (2.02%), M&M Ltd (2.02%), Infosys Tech (1.70%), L&T Ltd (1.68%), Hindalco (1.55%), HUL (1.32%), BHEL (1.24%), Grasim Industries (1.09%) and ONGC Ltd (1.01%).
Gainers from the BSE Sensex pack are Reliance Infra (2.45%), Sun Pharma (2.39%), TCS Ltd (2.25%), Sterlite Industries (2.04%), ITC Ltd (1.86%), Tata Power (1.76%), HDFC Bank (1.69%), JP Associates (1.49%) and Reliance (1.26%).
India’s annual rate of inflation further dropped to minus 1.55 per cent for the week ended 27th June as compared to minus 1.30 per cent of the previous week. However, the wholesale price index was 12.03 per cent in the corresponding week a year ago. Inflation eased despite rise in prices of food items like pulses, fish marine and fruit and vegetables.
On the global markets front the Asian markets that opened before the Indian market, ended mixed. Shanghai Composite, Hang Seng and Straits Times ended higher by 42.26, 69.52 and 47.84 points at 3,123.04, 17,790.59 and 2,307.61 respectively. However, Nikkei 225 index and Seoul Composite lost 129.69 and 0.13 points at 9,291.06 and 1,430.89 respectively.
European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading up by 65.43 points at 4,638.08 and in London FTSE 100 is trading higher by 29.11 points at 4,169.34.
The BSE Consumer Durable stocks dropped by (1.43%) or 40.99 points to close at 2,816.98. Major losers are Rajesh Export (2.27%), Titan Ind (1.98%), Blue Star L (1.61%), Videocon Ind (1.15%) and Gitanjali GE (0.78%).
The BSE Capital Goods index lost (1.607) or 125.22 points to close at 11,555.10. Losers are Crompton Greaves (3.42%), Reliance Industrial Infra (2.83%), Everrest Kanto (2.77%), Kalpat Power T (2.64%) and Usha Martin (2.49%).
The BSE IT index decreased by (0.63%) or 19.94 points to close at 3,128.22. Main losers are Moser Bayer (3.96%), Oracle Fin (2.14%), Inflosys Tech (1.70%), Financ Tech (1.60%) and Wipro Ltd (0.31%).
The BSE Metal index increased by (1.53%) or 154.68 points at 10,255.84. Welspan Guajrat SR (5.01%), Gujarat NRE C (4.64%), Hindustan Zind (4.53%), Jindal Steel (4.36%) and Steel Authority (3.98%) ended in positive territory.
The BSE Pharma ended higher by (1.70%) or 37.25 points at 3,596.80. Gainers are Wockhardt Ltd (6.42%), Dishmkan Pharma (6.00%), Biocon Ltd (4.36%), Apollo Hos (3.71%) and Aurobindo Pharma (3.63%).
The BSE FMCG index gained (1.02%) or 24.25 points at 2,403.84. Scrips that gained are United Spr (4.86%), Godrej Cons (4.09%), Marico Ltd (3.84%), Godrej Palm (2.39%) and ITC Ltd (1.86%).
Educomp Solutions gained 13.38%. the company said that it has raised Rs 606.69 crore by private placement of shares with qualified institutional buyers. The company has alloted 1,620,000 shares of Rs 10 each at a price of Rs 3,745 a piece, aggregating to an issue size of Rs 606.69 crore on private placement basis with qualified institutional buyers, the company said in a filing to the Bombay Stock Exchange.
Mahindra Satyam Ltd improved 3.62% on reports the company has received an approval from the Company Law Board to issue shares to Venturbay Consultants, a subsidiary of Tech Mahindra, on preferential basis.
SBI ended higher by 0.94%. The bank has approval from the Insurance Regulatory and Development Authority (IRDA) for its proposed non-life joint venture with IAG of Australia.
Moser Baer India Ltd closed lower by 3.96%. The company has posted a net loss of Rs (1508.80) million for the year ended March 31, 2009 as compared to net loss of Rs (789.10) million for the year ended March 31, 2008. Total Income has increased from Rs 20017.30 million for the year ended March 31, 2008 to Rs 23249.10 million for the year ended March 31, 2009.
Mahindra & Mahindra ended down by 1.02%. The company is planning to launch diesel-powered pick-up trucks in the US. However, some global carmakers such as Honda, Toyota, Nissan and Ford have put on hold the similar launches in the US.
DLF Ltd lost 2.02%. The company has sold its stake in a 50:50 joint venture with Ackruti City for developing a commercial project in Mumbai to a US-based real estate fund for over Rs 200 crore. The stake sale by DLF is a part of the company’s asset sale programme to raise Rs 5,500 crore by the end of this fiscal.
Turnover declines sharply
Nifty July 2009 futures at discount
Nifty July 2009 futures were at 4075.20, at a discount of 5.75 points as compared to the spot closing of 4080.95. Turnover in NSE's futures & options (F&O) segment was Rs 53,047.24 crore, sharply lower than Rs 66,588.76 crore on Wednesday, 8 July 2009.
Tata Steel July 2009 futures were at discount at 363 compared to the spot closing of 364.05.
Suzlon Energy July 2009 futures were at discount at 85.65 compared to the spot closing of 86.35.
Unitech July 2009 futures were near spot price at 69.80 compared to the spot closing of 69.85.
In the cash market, the S&P CNX Nifty rose 2.05 points or 0.05% at 4080.95.
Asian markets witness mixed trend
Shanghai post-modest gains while Sensex, Seoul ended little lower
Stock market in Asian region continued to witness mixed trend on Thursday, 9 July 2009, with participants choosing a cautious path ahead of the reporting season.
On Wall Street, stocks managed to end little higher but in a mixed mode after a day of volatile trading pressured by slipping crude price. The absence of positive catalysts led sellers to step in during mid day and send stocks lower before strong Treasury auction results encouraged buyers to step back into the action. Economic worries loomed large over stocks and the same continued with their downward slide.
The Dow Jones Industrial Average ended higher by 14.8 points at 8,178. The Nasdaq Composite Index, ended higher by 1 point at 1,747. S&P 500 ended lower by 1.4 points at 879.
In the commodity market, crude oil rebounded from a seven-week low as traders took the view that the decline in prices during the longest losing streak this year was overdone.
Crude also gained as the Washington-based International Monetary Fund said in a revised forecast yesterday that the world economy will expand 2.5% in 2010, compared with its April projection of 1.9% growth. A contraction this year will be 1.4%, worse than an April forecast for a 1.3% drop, the IMF said.
China’s passenger-vehicle sales rose 48% in June, the biggest jump since February 2006, as government stimulus spending spurred a revival in the world’s third-largest economy.
Crude oil for August delivery gained as much as 85 cents, or 1.4%, to $60.99 a barrel on the New York Mercantile Exchange, and traded at $60.81 at 3:30 p.m. Singapore time. Futures touched $60.01 yesterday before closing down 4.4% at $60.14, the lowest settlement since 19 May 2009.
Brent crude for August settlement rose as much as 94 cents, 1.6%, to $61.37 a barrel on London’s ICE Futures Europe exchange and was at $61 at 3:06. p.m. in Singapore. Yesterday, it declined $2.80, or 4.4%, to $60.43, the lowest settlement since 25 May 2009.
Gold rose from a two-month low in London as the dollar weakened for the first time in six days, increasing the metal’s appeal as an alternative investment. Bullion for immediate delivery gained $4.83, or 0.5%, to $914.33 an ounce by 9:10 a.m. in London. The metal yesterday fell the most in a month. August gold futures rose 0.5% to $914 an ounce on the New York Mercantile Exchange’s Comex division.
In the currency market, yen retreats mildly today to digest yesterday's sharp gain but after all, the trend should be formed as risk sentiments reversed since June. Among the major currencies, Aussie and Kiwi, as the highest yielder, are hardest hit so far this month, which is normal.
The Japanese yen strengthened against major currencies on Thursday. The Japanese currencies were quoted at 92.68 against the US dollar.
The Hong Kong dollar was trading at HK$ 7.7502 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 lower despite a late comeback linked to a positive lead from the domestic share market. At the local close, the Australian dollar was trading at $US0.7822, down from Wednesday's close of $US0.7863. During the local session on Thursday, the unit moved between a high of $US0.7822 and a low of $US0.7755.
The South Korean won ended at 1,279 won against the dollar, down 2.9 won from Wednesday's close, as exporters sold the Korean currency.
The Taiwan dollar strengthened against the greenback. The Taiwan dollar gain against the US dollar as it was trading higher at NT$ 32.9900, up by NT$ 0.0460 from Wednesday’s close of NT$33.0360.
Coming back in equities, Asian shares were mixed, with some markets off their lows as investors took note of an after-hours rise in Alcoa, though recent weakness in oil and commodity prices kept the mood gloomy on the prospects for a quick economic recovery.
In Japan, the stock market extended losses for seventh consecutive day, as investors sold export oriented stocks amid concern the rising yen dimmed earnings prospects, while rekindled concern over the health of global economy weighing shares of banks and real estate. Lower crude oil and metals prices taking a toll on commodity-linked stocks. At the closing bell, the Nikkei 225 Stock Average index shed 129.69 points, or 1.38%, to 9,291.06, while the broader Topix index stumbled 14.63 points, or 1.6%, to 874.
In Mainland China, stock index recouped early losses to finish the session flat, as investors sentiments relived after the International Monetary Fund has raised its 2009 growth forecast for Asia's developing economies from 4.8% to 5.5%. IMF raised its 2009 growth outlook for China by one percentage point to 7.5%, due to its stimulus-driven investment boom and a faster-than-expected turnaround in capital flows.
The Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, rose 1.37%, or 42.26 points, to 3,123.40, while the Shenzhen Component Index added 1.2%, or 149.36 points, to 12,637.94.
On the economic front, the National Bureau of Statistics (NBS) said China's business climate index, a main measurement of macro-economic outlook, rose by 10.3 points in the second quarter (Q2) 2009 from the previous quarter. The quarterly business climate index climbed from 105.6 in the first quarter this year to 115.9, the NBS said. The index ranges from zero to 200. A reading above 100 shows economic expansion, while a reading below 100 indicates contraction.
In Hong Kong, the benchmark index clawed back morning losses to finish the session higher, snapping three days of loosing streak on the back of strong gains in carmakers after China announced upbeat June car sales. Airlines stocks zoomed as crude oil prices eased overnight and hopes for industry consolidation. The Hang Seng Index gained 69.52 points, or 0.39%, to 17,790.59, while the Hang Seng China Enterprise Index added 67.48 points, or 0.64%, to 10,641.19.
In Australia, the stock market clawed back most of early losses as investors chased for bargain among recently battered shares after a report showed that Australia's unemployment rate raised less than expected in June. Banks and properties tumbled as investors cautious about the economic outlook at the kickoff of the corporate earnings season.
At the closing bell, the benchmark S&P/ASX200 index erased 4.6 point, or 0.12%, to 3,763.3, meanwhile the broader All Ordinaries shrank 4.6 points, or 0.12%, to 3,761.4.
On the economic front, the Australian Bureau of Statistic revealed the unemployment rate increased to 5.8% seasonally adjusted in June, slightly down from the 5.9% many economists were predicting. There are now 663,000 people looking for work in Australia, up by 7,400 from May’s unemployment rate of 5.7%.
In New Zealand, stock market slipped following a lackluster session in the United States market on Wednesday. The share market dipped down today after registering two consecutive gains. The NZX50 dipped down 0.32% or 8.92 points to 2741.69. The NZX 15 decreased 0.37% or 18.93 points to close at 5079.93.
On the economic front, the Real Estate institute of New Zealand says fewer houses were sold in June than May but the average price rose slightly. REINZ said today 6040 houses were sold nationwide in June compared to 6291 in May. The average sale price rose to $340,000 - in line with June 2008 - and up from May's $337,000. The median time taken to sell fell to 41 days in June this year from 53 days in June 2008.
In South Korea, shares closed ended flat after a volatile session as institutional investors sold shares for the third day. The benchmark Korea Composite Stock Price Index (KOSPI) fell 0.13 points to 1,430.89.
In Singapore, the stock market rose on the back of gains from financials, multi-industries, and manufacturing as investors sentiments relived after the International Monetary Fund has raised its 2009 growth forecast for Asia's developing economies from 4.8% to 5.5%. The blue chip Straits Times Index rose 47.84 points, or 2.12%, to 2,307.61.
In Taiwan, stock market in Taiwan continued its seesaw movement by erasing yesterday’s losses with gains, as shares of LCD makers lead the gains in the optoelectronics sector on increasing demand for LCD panels. The main Taiex share index gave up yesterday’s losses as the Taiex index escalated 80.04points or 1.20%, closing the day at 6748.18, highest closing since 6 June 2009 when market closed the day at 6856.74.
On the economic front, the number of unemployment benefit applicants totaled 134,578 in June for a sharp rise of 45,890 from 88,688 recorded a month earlier, according to the Bureau of Labor Insurance under the Cabinet-level Council of Labor Affairs (CLA).
In the same month the unemployment benefit payments hit a six-month high of NT$2.532 billion (US$76.73 million at US$1 = NT$33), for a sizable monthly growth of nearly NT$1 billion (US$30.3 million).
In Philippines, the stock market overturned yesterday’s losses, closing higher, as investors remained in a wait and see mode ahead of the monetary policy meeting of the Philippines monetary board today. Following the abrupt decline in inflation the central bank has signaled clearly that it will further relax monetary policy in response to slowing inflation. Monetary authorities have all but guaranteed a rate cut of at least 25 basis points when they meet. The benchmark index PSEi escalated 0.48% or 11.86 points to 2,473.85, while the All Shares index climbed 0.67% or 10.58 points to 1,589.35.
In India, the key benchmark indices provisionally closed flat after moving between the positive and negative terrain throughout the day in what was a volatile trading session. The BSE 30-share Sensex was down 11.69 points or 0.08% to 13,757.46. The S&P CNX Nifty was up 2.05 points or 0.05% to 4,080.95.
Elsewhere, Malaysia's Kula Lumpur Composite index went up 0.02% or 0.21 points to 1065.68 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2083.97 points.
In other regional market, European shares rose for the first time in six sessions on Thursday, with metal stocks climbing after U.S. aluminium giant Alcoa posted better-than-expected quarterly results and SAP moved higher after a broker upgrade.
On a regional level, the U.K. FTSE 100 index advanced 0.77% 31.66 points to 4,172 ahead of a decision on interest rates from the Bank of England. The German DAX index advanced 1.42% or 64.80 points to 4,637 and the French CAC-40 index rose 1.08% or 32.36 points to 3,042.
RIL gains in choppy market
The key benchmark indices closed flat after moving between positive and negative terrain throughout the day in what was a volatile trading session. The BSE 30-share Sensex was down 11.69 points or 0.08%, up close to 115 points from the day's low and off close to 120 points from the day's high. The 50-unit S&P CNX Nifty closed slightly higher. Index heavyweight Reliance Industries rose. The market breadth was weak.
The market was volatile. Stocks edged higher in early volatile trade after the International Monetary Fund revised upwards India's growth projection by 0.9% for 2009 and 2010. But the market slipped into the red in mid-morning trade on concerns over progress of India's annual monsoon and worries over a possible downgrade of the country's sovereign rating by rating agencies due to high fiscal deficit.
The market cut entire losses in early afternoon trade soon after government data showed headline inflation hovering the negative zone for a fourth consecutive week. The market once again slipped into the red in early afternoon trade before regaining positive zone. The Sensex moved between the positive and negative terrain in late trade.
Inflation based on the wholesale price index (WPI) fell 1.55% in the 12 months to 27 June 2009, compared with the previous week's annual decline of 1.3% government data showed at 12:00 IST today. However, the government revised upwards WPI for week ended 2 May 2009 to 1.48% from 0.48%.
Analysts say that last week's increase in petrol and diesel prices may rekindle inflation pressures in coming months. Consumer price inflation also remains high.
On the flip side, the International Monetary Fund (IMF)'s latest World Economic Outlook said the global economy is likely to decline 1.4%, slightly steeper than the 1.3% contraction it saw in April 2009 in calendar 2009. However it foresaw a stronger recovery next year. Economic growth could hit 2.5 % in 2010, a more optimistic figure than the 1.9% the IMF reported in April.
For India, the IMF has revised upwards because of positive impact from fiscal and monetary stimulus packages. The multilateral financial institution now expects Asia's third largest economy to grow at 5.4% in calendar 2009, compared with 4.5% projected in April this year. In 2010, the Indian economy is expected to grow at a much faster rate of 6.5%. Early this, the Indian government forecast a 6.7% growth in GDP for the year ending March 2010.
Recent data has confirmed a recovery in India's economy. India's car sales rose an annual 7.8 % in June 2009 over June 2008, climbing for a fifth straight month and reinforcing the country was one of the few markets where demand has been picking up. The government will release industrial output data for the month of May 2009 on Friday, 10 July 2009.
Weak monsoon, however, is a cause for concern. India's huge farm economy may be hit by a bad drought if its annual monsoon rains remain weak with the window for planting crops closing by mid-July, a report from a US Agricultural Department attache said. India's monsoon rains have now covered all of the country, but the country's Meteorological Department said last week that as of 1 July 2009, the rains were 29% below normal.
Meanwhile, global rating agency Standard & Poor's Ratings Services on Wednesday said it maintains its view that India's high fiscal deficits are not sustainable in the medium term and if fiscal consolidation is delayed, there is a risk that the sovereign credit ratings on India may be lowered. S&P ranks India's long-term local-currency rating at BBB-, their lowest investment grade.
A reduction in credit rating would make it difficult for Indian firms to borrow overseas, adding pressure to the domestic credit system, which threatens to be swamped by higher government borrowing.
Finance Minister (FM) Pranab Mukherjee set a sharply higher fiscal deficit target to 6.8% for the financial year ending March 2010 after he increased spending on roads, power and aid to the poor.
The next major trigger for the market is earnings of India Inc. for the quarter ended June 2009. India's second largest IT major by sales Infosys kickstarts the result season on Friday, 10 July 2009.
European stocks rose on Thursday as a rebound in oil prices boosted shares of energy companies such as Total. The key benchmark indices in France, Germany and UK were up by between 0.67% to 1.21%.
Most Asian shares rose on Thursday, with some markets off their lows as investors took note of an after-hours rise in US aluminium major Alcoa, though recent weakness in oil and commodity prices kept the mood gloomy on the prospects for a quick economic recovery. The key benchmark indices in Hong Kong, China, Singapore and Taiwan rose by between 0.39% to 2.12%. The key benchmark indices in South Korea, and Japan were down by between 0.01% to 1.38%.
China's passenger-vehicle sales rose 48% in June 2009 over June 2008, the biggest jump since February 2006, as tax cuts and government subsidies helped the nation extend its lead over the US as the world's largest auto market this year.
Alcoa swung to a second-quarter loss, due to falling aluminum prices and volume, which led to a big drop in revenue. However, the company recorded some sequential improvement and beat Street expectations.
Trading in the US index futures indicated Dow could rise 42 points at the opening bell today, 9 July 2009.
US markets ended flat yesterday, 8 July 2009 after a seesaw session as investors rotated into defensive stocks. The Dow Jones industrials rose 14.81 points, or 0.2%, to 8,178.41. The S&P 500 index fell 1.47 points, or 0.2%, to 879.56 and the Nasdaq Composite Index rose 1 points, or 0.1%, to 1,747.17.
On the economic front, some positive news came out of the housing sector. Demand for US mortgages rose 11% last week as mortgage rates again receded.
Closer home, foreign funds bought shares worth Rs 4,356.70 crore in the fist few days of July 2009 (till Wednesday, 8 July 2009). The strong inflows reflected subscription by foreign funds in qualified institutional placement by Indian firms. On a cumulative basis, foreign funds bought shares worth Rs 28,889 crore shares in calendar 2009, till 8 July 2009.
The BSE 30-share Sensex was down 11.69 points or 0.08% to 13,757.46. The Sensex rose 110.03 points at the day's high of 13,879.18 in early trade. At the day's low of 13,643.97, Sensex fell 125.18 points in mid-morning trade.
The S&P CNX Nifty was up 2.05 points or 0.05% to 4,080.95. Nifty July 2009 futures were at 4075.20, at a discount of 5.75 points as compared to the spot closing of 4080.95. Turnover in NSE's futures & options (F&O) segment was Rs 53,047.24 crore, sharply lower than Rs 66,588.76 crore on Wednesday, 8 July 2009.
BSE clocked a turnover of Rs 4,877 crore, lower than Rs 5,400.03 crore on Wednesday, 8 July 2009.
Indian stocks have risen sharply this year boosted by strong inflow of foreign funds. The BSE Sensex is up 4,110.15 points or 42.6% in calendar year 2009, as on 9 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 5,597.06 points or 68.58% as on 9 July 2009.
Coming back to today's trade, the market breadth was weak. On BSE, 1070 shares rose as compared with 1,463 that fell. A total of 98 shares remained unchanged.
From the 30 shares Sensex pack, 14 rose and rest fell.
The BSE Mid-Cap index was up 0.54% and outperformed the Sensex. The BSE Small-Cap index was down 0.14% and underperformed the Sensex.
The BSE Metal index (up 1.53%), the BSE Healthcare index (up 1.05%), the BSE FMCG index (up 1.02%), the BSE Oil & Gas index (up 0.91%), the BSE PSU index (up 0.18%), the BSE Auto index (up 0.06%), the BSE Power index (up 0.05%), the BSE TECk index (down 0.01%), outperformed the Sensex.
The BSE Consumer Durables index (down 1.43%), the BSE Capital Goods index (down 1.07%), the BSE IT index (down 0.63%), the BSE Bankex (down 0.36%), the BSE Realty index (down 0.2%), underperformed the Sensex.
India's largest private sector firm by market capitalisation Reliance Industries (RIL) rose 1.26% to 1,852.35 on bargain hunting after a recent fall. But the stock was volatile. It moved between a low Rs 1,832 and a high of Rs 1873.70. The Supreme Court on Tuesday declined to stay the Bombay High Court's verdict in a dispute over the sale of natural gas by Reliance Industries (RIL) to Reliance Natural Resources (RNRL).
The Supreme Court didn't grant RIL' plea to stay the order of the Bombay High Court until the resolution of the case and issued notices to the companies and the Centre. Both companies have to reply to appeals filed by each other by 20 July 2009, when the matter is scheduled to be heard. The government must also respond by then, the court said.
RIL, late last week, moved the Supreme court, challenging the Bombay High Court judgment asking it to supply gas to the former at a price that is 44% lower than fixed by the government. In its appeal filed in the Supreme Court on Saturday 4 July 2009, Reliance Industries contended that the high court had erred in deciding the three terms - quantity, tenure and price of gas supply to power plants of Reliance Natural Resources (RNRL) affiliates.
Oil stocks were mixed after an overnight sharp slide in crude oil prices. India's largest state-run oil exploration firm by revenue ONGC fell 1.01%. But Cairn India rose 1.43% as oil recovered on Thursday after Wednesday's steep slide. Light, sweet crude futures for delivery in August 2009 contract dropped $2.79 or 4.43% to $60.14 per barrel on New York Mercantile Exchange on Wednesday, 8 July 2009 as US government data showed a larger-than-expected rise in distillate and gasoline inventories last week. The fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.
Crude oil rebounded today from a seven-week low as traders took the view that the decline in prices during the longest losing streak this year was overdone. Crude oil for August delivery gained as much as 72 cents, or 1.2%, to $60.86 a barrel on the New York Mercantile Exchange today.
The overnight sharp fall in oil prices boosted shares of PSU OMCs. BPCL, HPCL and Indian Oil Corporation rose by between 0.58% to 2.23%. Lower crude oil prices will reduce under-recoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price. The government, last week, hiked petrol prices by Rs 4 per liter and diesel prices by Rs 2 per liter.
But, contrary to market expectations, the Union Budget 2009-2010 did not include a roadmap for decontrol of fuel prices in the country but the finance minister said it will set up a expert panel to look into the matter of fuel pricing.
Metal stocks rose after US metals giant Alcoa reported better-than-expected results after trading hours in the US on Wednesday and after metal stocks climbed in Europe on Thursday. Steel Authority of India, Tata Steel, Sterlite Industries, Hindustan Zinc rose by between 0.46% to 4.53%.
India's second largest IT firm by sales Infosys fell 1.7% ahead of its Q1 June 2009 result tomorrow, 10 July 2009. The company's revenue as well as profits are seen falling sequentially due to a firm rupee. Investors would closely watch the managements comments for signs of recovery in the business environment. Its ADR fell 2.75% overnight.
A total of four brokerages expect a between 8% to 16.1% fall in Infosys' consolidated net profit at between Rs 1353.30 crore to Rs 1483.80 crore in Q1 June 2009 over Q4 March 2009. Their estimates peg a between 3% to 6.5% fall in Infosys' sales at between Rs 5269.10 crore to Rs 5466 crore in Q1 June 2009 over Q4 March 2009
FMCG stocks rose as the Finance Minister reiterated the government's thrust on the agriculture sector in Union Budget 2009-2010. FMCG firms derives a substantial revenue from rural sector. REI Agro, Jain Irrigation, Tata Tea, ITC, United Spirits, Dabur india rose by between 1.14 % to 4.97%.
Finance Minister Pranab Mukherjee, while presenting the Union Budget for 2009-10, said the government will ensure that agriculture grows by at least 4% per year.
The government has announced additional interest rate subvention of 1% to farmers who pay short-term farm loans on schedule. The government has also decided to extend agriculture debt waiver by six months and to provide additional Rs 1000 crore over interim budget for irrigation.
Capital goods stocks fell on profit taking even as the Budget laid a major emphasis on infrastructure development. Crompton Greaves, Punj Lloyd, Praj Industries, Siemens, Bharat Heavy Electricals fell by between 1.24% to 3.42%.
India's largest engineering & construction firm by sales Larsen & Toubro fell 1.68% after company's Chairman and Managing Director A M Naik sold 39,185 shares or 0.01% stake in the company worth Rs 6.42 crore. Naik sold the shares on 30 June 2009, L&T said in a filing to the stock exchanges.
Among construction shares, Hindustan Construction Company, IVRCL Infrastructure & Projects and Nagarjuna Construction Company, rose by between 1.12% to 3.21%. Finance Minister Pranab Mukherjee on 6 July 2009, provided a thrust on various infrastructure projects in the Budget which will benefit construction firms in the form of increased orders. The government announced more spending for urban, water and road projects. The allocation to National Highway development program allocation was increased 23% to Rs 15948 crore.
Cement stocks fell on profit taking after a sharp surge this week due to the Budget's thrust on the infrastructure sector. ACC, Birla Corporation of India and Grasim Industries, fell by between 0.45% to 1.29%.
Realty stocks reversed recent steep losses on bargain hunting. DLF, Unitech, Housing Development & Infrastructure, Indiabulls Real Estate, Akruti City rose by between 0.54% to 2.57%. Realty shares declined sharply this week after the Finance Minister made no major announcement to boost the debt ridden sector reeling under slump in demand for new homes in the Budget.
Some drug makers rose after the Finance Minister Pranab Mukherjee reduced customs duty on life saving drugs in the Budget. Pfizer, Cipla, Dr Reddy's Laboratories, Wockhardt, Biocon, Sun Pharmaceutical Industries rose by between 0.4% to 6.42%.
Finance minister on 6 July 2009, reduced basic customs duty on influenza vaccine and nine other specified life-saving drugs used for treating breast cancer, hepatitis-B, rheumatic arthritis, etc.
The government has also reduced basic customs duty for two bulk drugs used in manufacturing these medicines from 10% to 5%. Bulk drugs are processed raw materials used in manufacturing the final doses of medicines.
Some power stocks rose on bargain hunting after a post Budget slide triggered by lack of any major sops in the Budget to the sector. Reliance Infrastructure, PowerGrid Corporation of India, Tata Power Company, rose by between 0.44% to 2.45%.
Bank stocks recovered after initial losses as inflation remained in the negative zone. India's biggest bank in terms of branch network State Bank of India (SBI) rose 0.94%. India's second largest private sector bank by net profit HDFC Bank rose 1.69% even as its American depository receipt (ADR) fell 2.75% on Wednesday, 8 July 2009. But, India's largest private sector bank by net profit ICICI Bank fell 2.77% as its ADR fell 6.67% overnight.
India's biggest dedicated housing finance firm by operating income Housing Development Finance Corporation fell 0.58%.
Bank stocks declined sharply this week after the government did not announce financial sector reforms in the Budget. Market expectations on financial sector reforms were high. The government's annual economic survey released ahead of the Budget had called for a phased increase in the foreign direct investment limit in banks. Voting rights in banks should be aligned with equity holdings, the Survey had said.
Unitech clocked the highest volume of 5.71 crore shares on BSE. Suzlon Energy (2.04 crore shares), Cals Refineries (1.57 crore shares), Mahindra Satyam (1.15 crore shares) and Ispat Industries (0.86 crore shares) were the other volume toppers in that order.
Unitech clocked the highest turnover of Rs 398.88 crore on BSE. Educomp Solutions (Rs 345.54 crore), Reliance Capital (Rs 199.49 crore), DLF (Rs 178.32 crore) and Reliance Industries (Rs 177.93 crore) were the other turnover toppers in that order.
Market loses at end
The market appeared to be heading towards a negative close after a strong bout of profit taking towards the close shaved off nearly 122 points from the day’s high. Starting the day with a gap of 27 points at 13796, the Sensex witnessed strong optimism till afternoon. Sustained buying in several counters held the market firm above 13800 levels in the first half of the trading session and touched the day's high of 13879. In afternoon, the market slid as weakness in select heavyweights, consumer goods (CG), consumer durables (CD) and information technology (IT) stocks dragged the index to an intra-day low of 13644, down 126 points for the day. The Sensex however ended the session with marginal loss of 12 points at 13757, while the Nifty gained 2 point to close at 4081.
The market breadth was negative. Of the 2,636 stocks traded on the BSE, 1,463 stocks declined, 1079 stocks advanced. 95 stocks ended unchanged. The 13 sectoral indices on the BSE had a mixed trading for the day. BSE Metal gained 1.53% followed by BSE HC (up 1.05%), BSE FMCG (up 1.02%) and BSE OIL & Gas (up 0.91%). However, BSE CD (down 1.43%), BSE CG, BSE IT, BSE Bankex and BSE Realty closed with marginal losses.
Among the Sensex stocks, Reliance Infrastructure was the lead gainer, soaring 2.45% to Rs1,101 for the day. Sun Pharmaceutical Industries advanced 2.39% at Rs1,169.60, Tata Consultancy Services jumped 2.25% to Rs388.60, Sterlite Industries shot up by 2.04% to Rs557.20, ITC added 1.86% to Rs213.50, while Tata Power, HDFC Bank, JP Associates and Reliance Industries closed with marginal gains. Among laggards, Tata Motors tumbled 3.15% to Rs272.30, ICICI Bank shed 2.77% to Rs636.45 and DLF and Mahindra & Mahindra declined 2.02% to Rs278.70 and 722.05 respectively. Infosys, Larsen & Toubro, Hindalco Industries, Hindustan Unilever, Grasim Industries, ONGC and Bharat Heavy Electricals lost 1-2% each.
Over 5.71 crore shares of Unitech changed hands on the BSE followed by Suzlon Energy (2.04 crore shares), Cals Refineries (1.57 crore shares), Mahindra Satyam (1.15 crore shares) and Ispat Industries (0.86 crore shares).
Pre Session Commentary - July 9 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened in the positive terrain. The sentiments across Asia are still embedded with the bearish sentiments as the G-8 leaders have commented that the economic crisis in still not over and cause serious effects across the globe. There could be some rebound in the early trade after yesterday’s losses.
On Wednesday, domestic markets once again ended with huge losses for the second alternative day of the week. Negative sentiments from the US and other Asian markets afflicted the domestic traders during the early trading hours. The selling pressure was further intensified by news that the northwest region of India has received 45% below the average monsoon rainfall. The overall sentiment at the broader level was weak and therefore small and Sectors like Realty, CG, Metal and Bankex were the top losers for the day as they fell by 8.47%, 5.05%, 4.22% and 4.09% respectively. BSE Midcap and Smallcap ended with a loss of 3.66% and 3.73%. Today domestic markets are likely to trade range bound.
The BSE Sensex closed low by 401.30 points at 13,701.76 and NSE Nifty ended with a loss of 123.25 points at 4,078.90. BSE Mid Cap and Small Cap closed with losses of 181.50 points and 206.92 points at 4,782.84 and 5,337.35 respectively. The BSE Sensex touched intraday high of 14,039.58 and intraday low of 13,701.76.
On Wednesday, US Markets closed mixed. There was lack of any specific news in the markets and as a result trading was little subdued. The G-8 leaders believe that the economic crisis is still not over and could cause serious effect across the globe. The S&P 500 surrendered easily on the back of the auction of $19 billion of 10-year Treasury note which sent the benchmark 10-year bond yield to 3.3% for the first time since May. Retailers showed immense resilience by advancing 2.0% on the back of Family Dollar''s better-than-expected quarterly earnings results that helped win support for the sector ahead of a barrage of monthly same-store sales announcements. US light crude oil for August Futures delivery declined by 4.4 per cent at $60.14 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) was up by 14.81 points at 8,178.41. NASDAQ index closed flat at 1,747.71 and the S&P 500 (SPX) fell by 1.47 points to close at 879.56 points.
Indian ADRs ended in red on Wednesday. In the telecom space, MTNL was down 8.05% and Tata Communication was down 1.43%. In the banking space, ICICI Bank was down 6.67% and HDFC Bank was down 2.75%. In the IT space, Infosys was down 2.75%, Wipro was down 1.71%, Patni Computers was down 5.30%. However, Satyam Computers was up 1.80%. In other sectors, Sterlite Industries was down 8.59%, Tata Motors was down 6.94% while Dr Reddy''s Labs was up 1.21%.
Today major stock markets in Asia are trading mixed. Hang Seng is low by 87.46 points at 17,633.61. Shanghai Composite is flat at 3,080.87. Japan''s Nikkei is trading down by 69.16 points at 9,351.59. Strait Times is low by 26.59 points at 2,286.36. Seoul Composite is up by 6.81 points at 1,437.83 and KLSE Composite is flat at 1,065.47.
On Wednesday, the partially convertible rupee ended at Rs 48.88/89, 0.89% weaker than its previous close at 48.45/46. The rupee gained strength on the back of rise in local stock markets.
On BSE, total number of shares traded were 40.04 Crore and total turnover stood at Rs 5,400.03 Crore. On NSE, total number of shares traded was 91.65 Crore and total turnover was Rs 16,975.43 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 104177957 shares, followed by Suzlon Energy with 60493387, SAIL with 15047693, DLF with 14268810 and Tata Steel with 12824737 shares.
On NSE Future and Options, total number of contracts traded in index futures was 879832 with a total turnover of Rs 17,380.88 Crore. Along with this total number of contracts traded in stock futures were 622413 with a total turnover of Rs 16,610.49 crore. Total numbers of contracts for index options were 1453276 with a total turnover of Rs 31,148.21 Crore and total numbers of contracts for stock options were 48288 and notional turnover was Rs 1,449.17 Crore.
Today, Nifty would have a support at 3,969 and resistance at 4,132 and BSE Sensex has support at 13,510 and resistance at 13,892.
Stocks to Watch - Reliance Communications, Satyam
Telecom tribunal TDSAT late Wednesday, 8 July 2009 dismissed a petition by Anil Ambani group firm Reliance Communications (RCom) seeking a clarification on its judgment on allocation of additional spectrum and dual technology regime. In its application, RCom, which has been allocated a start-up spectrum of 4.4 Mhz in all circles for GSM services, sought clarification that the TDSAT order is not a bar on geeting 6.2 MHz of spectrum.
Mahindra Satyam, formerly Satyam Computer Services, has announced that it had received approval from the Company Law Board to issue 19.86 crore shares of Rs 2 at a premium of Rs 56 to Venturbay Consultants Pvt. Ltd., a subsidiary of Tech Mahindra, on a preferential basis.
Tech Mahindra was allotted 31% equity shares of Satyam earlier at Rs 1,756 crore and Venturbay announced a public offer to take the balance 20% from the open market. However, the open offer failed to evoke response from subscribers with only 4.21 lakh shares including 2.69 lakh underlying American Depository Shares were validly tendered, representing less than 0.1% of the outstanding equity shares.
IndusInd Bank will raise around $100 million through a qualified institutional process (QIP) in the current quarter. The bank will dilute around 10-15% of its capital in the process. Post-issue, the promoter shareholding in the bank, currently at 25.63%, will come down by 3.5-4%.
Icra Management Consulting Services Limited (Imacs), an arm of Indian Credit Rating Agency (Icra) has formed a joint venture with Jeddah, Saudi Arabia-based investment firm Exsab International Holding Company for Trading Development, to offer advisory and consulting services in the Middle East and North Africa.
The joint venture will have operations in 21 countries, including Saudi Arabia, Qatar, UAE, Bahrain
, Kuwait, Oman, Iraq, Lebanon, Palestine, and Egypt, and will be headquartered in Riyadh, the companies said in a joint statement on Wednesday.
Net profit of TTK Healthcare declined 80.47% to Rs 2.10 crore in the quarter ended March 2009 as against Rs 10.75 crore during the previous quarter ended March 2008. Sales rose 20.70% to Rs 53.53 crore in the quarter ended March 2009 as against Rs 44.35 crore during the previous quarter ended March 2008.
IMF's upward revision in India's growth projection may support market
The key benchmark indices may see a uncertain start today. The International Monetary Fund's upward revision in India's growth projection by 0.9 % point in calendar 2009 and 2010 may however support the market. However, recent selling by foreign funds may weigh on investor
sentiment. India's wholesale price index (WPI) for the 12 months to 27 June 2009 will be announced by the government today. India's wholesale price index fell 1.3% in the 12 months to 20 June 2009, compared with the previous week's annual decline of 1.14%. The global cues were mixed.
The International Monetary Fund (IMF)'s latest World Economic Outlook said the global economy is likely to decline 1.4 %, slightly steeper than the 1.3 percent contraction it saw in April 2009 in calendar 2009, however it foresaw a stronger recovery next year. Economic growth could hit 2.5 % in 2010, a more optimistic figure than the 1.9 % the IMF reported in April. The International Monetary Fund (IMF) has revised upwards India's growth projection by 0.9 % point in calendar 2009 and 2010 because of positive impact from fiscal and monetary stimulus packages. The multilateral financial institution now expects Asia's third largest economy to grow at 5.4 % in calendar 2009, compared with 4.5 % projected in April this year. In 2010, the Indian economy is expected to grow at a much faster rate of 6.5 %.
Recently, the Economic survey for 2008-09 projected Indian economy to expand by 7% with a range of 0.75 percentage point on either side.
In the economic front, India's car sales rose an annual 7.8 % in June 2009 over June 2008, climbing for a fifth straight month and reinforcing the country was one of the few markets where demand has been picking up.
Global rating agency Standard & Poor's Ratings Services on Wednesday said it maintains its view that India's high fiscal deficits are not sustainable in the medium term and if fiscal consolidation is delayed, there is a risk that the sovereign credit ratings on India may be lowered. S&P ranks India's long-term local-currency rating at BBB-, their lowest investment grade.
Finance Minister (FM) Pranab Mukherjee set a sharply higher fiscal deficit target to 6.8% for the financial year ending March 2010 after he increased spending on roads, power and aid to the poor.
Asian markets were trading mixed today. The key benchmark indices in Singapore, South Korea and Taiwan rose by between 0.48% to 1.82%. The key benhchmark indices in China, HongKong and Japan fell by between 0.28% to 0.84%.
Meanwhile, China's passenger-vehicle sales rose 48 % in June 2009 over June 2008, the biggest jump since February 2006, as tax cuts and government subsidies helped the nation extend its lead over the U.S. as the world's largest auto market this year.
The US markets ended flat yesterday, 8 July 2009 after a seesaw session as investors
rotated into defensive stocks. The Dow Jones industrials rose 14.81 points, or 0.2%, to 8,178.41. The S&P 500 index fell 1.47 points, or 0.2%, to 879.56 and the Nasdaq Composite Index rose 1 points, or 0.1%, to 1,747.17.
On the economic front, some positive news came out of the housing sector. Demand for US mortgages rose 11% last week as mortgage rates again receded.
Back home, the BSE 30-share Sensex fell 401.30 points or 2.83% to 13,769.15 on Wednesday, 8 July 2009. As per the provisional figures on NSE, the foreign funds sold shares
worth Rs 828.01 crore and domestic funds bought shares worth Rs 594.07 crore on that day.
Precious metals at two month lows
Prices drop in synchronization with slipping crude
Precious metal prices dropped substantially lower on Wednesday, 08 July, 2009. Slipping crude prices coupled with the dollar which remained strong erased more shine from precious metals by decreasing their appeal as a hedge against inflation.
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 $909.3, lower by $19.8 (2.1%) an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 1.1%. Year to date, gold prices are higher by 3%.
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 (13%) since then.
On Wednesday, Comex silver futures for September delivery lost 36.8 cents (2.8%) at $12.852 an ounce.
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 14.4% 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. Dollar rose against the euro. The index rose as leaders from the Group of Eight nations kicked off their meeting today.
Crude prices traded lower once again today due to the strong dollar and economic worries. Crude oil prices settled around $60 today. With today's drop crude has given up almost $13 in the past six sessions.
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 108 (0.73%) at Rs 14,496 per 10 grams. Prices rose to a high of Rs 14,624 per 10 grams and fell to a low of Rs 14,457 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 244 (1.11%) lower at Rs 21,573/Kg. Prices opened at Rs 21,761/kg and fell to a low of Rs 21,460/Kg during the day's trading.
Crude back at $60 level
Price drop for the sixth consecutive session
Crude prices continued to slip at Nymex on Wednesday, 08 July, 2009. Prices fell as energy department reported rise in crude inventories for second straight week and also as energy demand remained fairly weak. Prices also dropped on worries about the certainty of global recovery from the current recession in the near future and strong dollar.
On Wednesday, crude-oil futures for light sweet crude for August delivery closed at $60.14/barrel (lower by $2.79 or 4.4%). Last week, crude ended lower by 3.5%. In July, crude has shed 14% on a m-t-d basis. Prices have gone down by $13 in the past six sessions.
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%. Crude prices 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 67% since then. Year to date, in 2009, crude prices are higher by 36.8%.
In the weekly inventory report, EIA reported today that crude inventories fell by 2.9 million barrels in the week ended 3 July, 2009. The drop came as US imported less oil in the week. Imports averaged 9.2 million barrels a day, down 139,000 barrels a day from the previous week. U.S. refineries ran at 86.8% of their operable capacity last week, slightly lower than the previous week's 87%.
EIA also reported today that gasoline inventories rose 1.9 million barrels, while distillate stockpiles increased 3.7 million barrels for last week. Total U.S. petroleum-product inventories rose for a 15th week to 766.9 million barrels, the highest level since 1998.
Yesterday EIA reported in its short-term energy outlook that it expects a smaller decline in global oil consumption this year due to better-than-expected economic activity in Asia. The EIA now projects oil consumption to fall by 1.6 million barrels a day compared with a decline of 1.7 million barrels a day in its June outlook. The price of crude oil is expected to average near $70 per barrel through the second half of 2009.
In the currency market on Wednesday, the dollar index, a six-currency measure of the greenback's value rose. Dollar rose against the euro. The index rose as leaders from the Group of Eight nations kicked off their meeting today.
Also at the Nymex on Wednesday, August reformulated gasoline fell 9.95 cents, or 5.7%, to $1.6333 a gallon and August heating oil dropped 2.59 cents, or 1.6%, to $1.6007 a gallon.
August natural-gas futures fell 5.8 cents, or 1.7%, to $3.429 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for July delivery closed at Rs 3,003/barrel, lower by Rs 72 (2.3%) against previous day's close. Natural gas for July delivery closed at Rs 167.6/mmbtu, lower by Rs 1.8/mmbtu (1.06%).
Grey Market Premium - Adani Power, NHPC, Mahindra Holidays, Excel Infoways
Mahindra Holidays 300
25 to 27
Excel Infoways Ltd. 80 to 85
Not Available
Adani Power 110 to 130 (Approximate)
20 to 25
NHPC 15 to 20 (Approximate)
4 to 5
Daily News Roundup - July 9 2009
Government is likely to be made an intervener in the RIL-RNRL case at the Supreme Court. (BS)
DLF sold its 50% stake in a commercial project in Mumbai, a JV with Akruti City, for Rs2bn to US based real estate developer. (ET)
IOC, HPCL and BPCL are expected to report Rs50bn loss on the sale of diesel, petrol and kerosene during Q1 FY10. (BL)
Tata Steel is on schedule to complete its Jamshedpur plant expansion to 10.5mt by 2010. (FE)
Tata steel plans to save Rs20bn this fiscal by increasing efficiency and cost cutting at its plant. (ET)
SAIL has cut prices of long steel products by 5%. (ET)
Coal India has sent notices of cancelling linkages to 19 companies including Hindalco, L&T and SRF amongst others. (ET)
The legal roadblock in selling the residual 29.5% stake in Hindustan Zinc has been removed with the withdrawal of the petition filed in the Supreme Court. (BS)
M&M plans to roll out diesel trucks in US. (ET)
DoT may impose a fine on Bharti Airtel for offering services to a number of subscribers in Delhi without proper verification. (BL)
TDSAT dismisses RCom’s application for GSM spectrum. (BS)
Educomp has opened the bidding for its US$100mn QIP. (BS)
CLB approved the allotment of fresh Satyam shares to Tech Mahindra on a preferential basis. (FE)
Gammon India received approval from the High Court for the merger of its subsidiary Associated Transrail Structures with itself. (BL)
GVK Power raised Rs7.2bn through placement of shares with QIB. (BL)
Government proposes IPO’s of NHPC in August and OIL in September. (FE)
Marico Bangladesh, an arm of Marico, plans to raise Rs90mn through an IPO. (BL)
Kingfisher Airlines plans to raise funds either through a rights issue or a follow on public offer if the FDI policy on investment in the sector remains unchanged. (BL)
Yes Bank plans to raise US$300mn by the end of this fiscal. (FE)
IndusInd Bank plans to raise US$100mn. (FE)
Bharat Electronics has exited the retail sale of set top boxes and will now focus on developing high end set top boxes for institutional buyers. (BL)
UTV Global Broadcasting Ltd (UGBL) and Dish TV have signed an agreement to broadcast UGBL’s English business news channel UTVi on the latter’s platform. (FE)
Lupin, Matrix Laboratories and Unichem Laboratories have come under the European Union Competition Commission scanner for an alleged understanding with global players to delay the launch of the generic version of Servier’s perindopril. (FE)
Galderma Laboratories, JV between Nestle and L’Oreal, and New York University have sued Lupin for infringing the patent rights of one of its main drugs, Oracea. (BS)
Elder Pharmaceuticals has earmarked Rs400mn investment to set up its network in villages. (BS)
Sobha Developers plan to raise Rs2.5bn during the current financial year through private placement or sale of land. (BL)
CERC plans to issue power trading regulations over the next couple of months. (FE)
Toshiba Corp, Japanese power and electronics major, announced that it would set up an Indian company to provide EPC services for power projects. (BL)
GE, the supplier of 9FA turbines to Dhabol, signed a comprehensive service and rehabilitation agreements with Ratnagiri Gas & Power Pvt Ltd. (FE)
Moser Baer has stopped some processes for manufacturing PV panels because of excess capacity and inventory build up. (BS)
BSNL shelves its plans to hive off its tower and other related infrastructure in a new entity. (ET)
Telecom operators will not get any spectrum unless the government finalizes a spectrum pricing policy. (FE)
Board of Approval which clears SEZ projects will meet next month to approve fresh proposals. (FE)
Power ministry proposed that 15% of the unallocated quota from the central sector will be sold through the exchanges. (FE)
29 coal projects meant for the power sector are awaiting environmental clearances. (FE)
Centre plans to enhance its nuclear power capacity to 6,700MW by the end of 2011. (FE)
Government plans to amend the I-T law to curb black money transactions in the property market. (BL)
NHAI plans to invite bids for 38 projects on a PPP model in FY10. (BL)
June automobile sales grew by 14.3% yoy. (BS)
Power ministry has asked for 40 units of gas from KG basin for its power plants. (ET)
Government to buy RBI’s stake in NABARD and NHB for Rs15bn. (ET)
Government plans to setup a coal regulatory body, with entry of private players in coal mining. (ET)
India’s June exports drop 29% yoy. (ET)
Fragile to exit!
Confidence is a very fragile thing.
The worst recession in several decades is moderating but it would be too early to withdraw the slew of government measures aimed at lifting the global economy, says the IMF. Group of Eight (G8) leaders endorse the IMF view saying that the economic recovery is too fragile to consider the so-called ‘exit’ strategies. Meanwhile, a top Democratic lawmaker has questioned if Obama’s economic stimulus plan is working as intended.
One of the key concerns is that the worldwide efforts to bolster growth could revive inflation and harden interest rates. India is no exception. Some experts are even worried about stagflation following the additional stimulus unveiled in the budget; especially, if monsoon plays truant and global commodity prices soar again.
Today, we expect a cautious opening with US markets ending flat and mixed indications coming from Asian markets. Shares in Europe fell for a fifth straight session. Tomorrow is a big result day, as Infosys will announce its Q1 results. The Government will come out with its latest IIP numbers. The near-term trend will remain hazy. Earnings, monsoon and global cues will continue to be the key drivers.
Results Today: Gammon India and Praj Industries.
FIIs were net sellers in the cash segment on Wednesday at Rs8.28bn while the local institutions poured in Rs5.94bn. In the F&O segment, the foreign funds were net buyers at Rs7.66bn.
US stock benchmarks reversed most of their losses by the close on Wednesday, as investors brushed aside concerns about the state of the economy to gear up for the starting of the quarterly earnings reporting period. Concerns that second quarter earnings will disappoint overshadowed a Treasury plan to remove as much as $40 billion in toxic assets from financial firms.
The Dow Jones Industrial Average gained 15 points, or 0.2%, to 8,178.41. The S&P 500 index finished nearly unchanged at 879.56. The Nasdaq Composite index ended just above the unchanged mark at 1,747.17.
US stocks slipped through most of Wednesday as investors remained nervous about the economy at the start of the quarterly reporting period. But after touching fresh multi-month lows in the afternoon, stocks bounced back.
Stocks have drifted lower since mid-June on worries that the US economy won't stabilise as quickly as hoped earlier. Those declines followed a three-month stock market rally that propelled the S&P 500 off of 12-year lows by about 40%.
Google said that late on Tuesday that it will challenge Microsoft's dominant Windows by launching a rival operating system called Chrome OS. The system will be available in the second half of 2010.
Google shares gained, but other big techs slipped including chipmakers Intel, AMD and Applied Materials. Bank of America, Morgan Stanley and Goldman Sachs were among the big bank decliners.
Among Dow movers, gains in Boeing, Johnson & Johnson and Wal-Mart Stores helped offset weakness in bank, tech and telecom stocks.
May consumer credit fell $3.22 billion versus a revised decline of $16.7 billion in the previous month. Economists had forecast a fall of $8.8 billion.
The International Monetary Fund (IMF) forecast that global GDP would shrink by 1.4% in 2009, versus its earlier forecast of 1.3%. However, the IMF also lifted its forecast for 2010 growth to 2.5% from 1.9% previously.
The leaders of the world's eight foremost industrialized nations (G8) met in L'Aquila, Italy to discuss the global economy, climate change and security issues. In addition to US President Barack Obama, the leaders of Japan, the UK, France, Italy, Germany, Canada and Russia are also due to speak.
Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.31% from 3.45% late on Tuesday.
Energy prices slipped, with US light crude oil for August delivery falling $2.79 to settle at $60.14 a barrel on the New York Mercantile Exchange. A government report showed a bigger-than-estimated increase in US fuel supplies last week as the recession curbed demand.
In currency trading, the dollar gained versus the euro and fell versus the yen.
COMEX gold for August delivery fell $19.80 to settle at $909.30 an ounce.
After the close, Dow component Alcoa reported a quarterly loss of 26 cents per share as the global recession ate into the price and demand for its precious metals. But the decline was narrower than the loss of 38 cents per share analysts expected. Alcoa earned 66 cents a year ago. Alcoa shares gained 5% in after-hours trading.
But most quarterly reports are not due until later this month and the results are expected to be fairly grim. Profits for S&P 500 companies are expected to have fallen 36% from a year ago, according to the latest Thomson Reuters estimates.
European shares closed lower for the fifth straight session. The pan-European Dow Jones Stoxx 600 index declined 1.2% to 197.75, edging below 200 for the first time since mid-May. The index is still roughly 28% above its March low although shares haven't made much progress since the start of May.
The UK's FTSE 100 index fell 1.1% to 4,140.23, while the French CAC-40 index lost 1.3% to 3,009.71 and Germany's DAX index slipped 0.6% to 4,572.65, supported by gains for utility giant E.On and software firm SAP.
Indian markets were once again under the bear attack as the key indices reversed all the previous day gains on Wednesday. Bulls were unable to hold their composure as unabated selling throughout the day dragged the BSE Sensex and NSE Nifty below the 14,000 and 4,100 levels respectively.
The sharp sell-off could be attributed to weak cues from the international markets. Sentiments were further dampened after reports stated that monsoon rains have been 45% below average in the northwest region.
The decline was led by the interest rate sensitive stocks. Even the Mid-Cap and the Small-Cap stocks were not spared.
Technically, the NSE Nifty index has ended below the 4,080 levels which was a crucial support level for the index previously.
The heavy offloading in the past three days have seen the BSE Sensex losing over 1,100 points and the NSE Nifty nearly 350 points.
The Sensex lost 401 points or 2.8% at 13,769 after touching a high of 14,039 and a low of 13,701. The index had opened at 14,039 against the previous close of 14,170.
The NSE Nifty plunged 127 points or 3% to shut shop at 4,075.
Asian markets ended in the red; the Nikkei index in Japan slipped 2.3% at 9,420, Australia's S&P/ASX ended flat at 3,767. Hang Seng index fell 0.8% at 17,721.
Elsewhere in the Europe, stocks were trading mixed. The FTSE index was up 0.2% at 4,191. The DAX index was down 0.2% at 4,594. CAC 40 index was down 0.6% at 3,033.
Coming back to India, among the BSE Sectoral indices BSE Realty index was the top loser losing 8.5%, followed by the BSE Capital Goods index down 5%, BSE Metal index down 4.2% and BSE Bankex index down 4%.
The BSE Mid-Cap index lost 3.6% and the BSE Small-Cap index fell 3.7%.
In the Sensex, the major losers were Tata Steel, DLF, Reliance Infra, Sterlite, ICICI Bank, JP Associates, L&T and BHEL.
On the other hand, ACC, Maruti, Hero Honda, NTPC, Grasim and Tata Motors were among the top losers.
Outside the frontline indices, the top losers included Aban, Essar Oil, Suzlon, Jai Corp, Moser Baer, Canara Bank and IFCI.
Among the big gainers in the broader market were BEML, NMDC, Aditya Birla Nuvo, ZEE, BEL, Areva and APIL.
Cement stocks ended with smart gains due to increase in infrastructure allocation in Budget spending.
The Finance Minister in his Budget announced an increased spending allocation for commonwealth games to Rs347bn from Rs211bn and increase in infrastructure and housing spending through PPP model.
Suzlon Energy bagged new orders totaling to 114 MW in capacity. Suzlon Energy (Tianjin) Ltd., a subsidiary of the company further strengthened its presence in the Chinese wind energy market with another order for 48.75 KW.
The contract for 39 sets of S.64 - 1.25 MW capacity was signed with Datang Power Generation Co. The turbines under this order are expected to be delivered and commissioned by the third quarter of financial year 2009-10.
Suzlon Energy (Tianjin) got another Chinese order for 50 MW. The contract for 40 units of 1.25 MW capacity was signed with Honiton.
The company gets a repeat order for 10 units of S.82-1.5 MW turbine from KS Oils Ltd. The edible oil major started with a 2.5MW project in Madhya Pradesh with Suzlon and has placed 6 orders with Suzlon till date.
Shares of Suzlon Energy slumped by over 10% to Rs87 after hitting an intra-day high of Rs96 and a low of Rs87 and recorded volumes of over 10.7mn shares on BSE.
Refinery stocks also were in demand after crude oil prices fell to its lowest levels in over 4 weeks. Crude oil fell for the sixth straight day posting its longest losing streak since December 2008.
The government hiked retail fuel prices on July 2, 2009. It hiked retail prices of petrol and diesel. Petrol prices were hiked by Rs4 per litre while diesel prices have been raised by Rs2 a litre.
Lupin, Matrix Labs and Unichem Labs face European Union antitrust investigations of agreements that may have delayed market entry of a cardiovascular drug.
Others like Teva Pharmaceutical, Les Laboratories Servier, France and other generic-drug makers also are under the investigations.
The investigations concern agreements between Servier and generic-drug makers that may have hindered the market entry of generic perindopril, a cardiovascular medicine developed by Neuilly, France-based Servier.
The companies were probed as the commission said in a report that companies use a variety of techniques to delay the introduction of generics "for as long as possible."
Shares of Lupin slipped by 3% to Rs808, Unichem Labs was down by 3% to Rs203 and Matrix Labs ended flat at Rs206.
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