Tuesday, July 21, 2009
Indian market snapped its two consecutive session’s gaining streak to close the volatile session on downbeat note on sustained selling pressure seen in key stocks. Positive European markets contributed a bit to the recovery during the trading. However, domestic bourses were unable to recuperate on fears of impact of less rain on the economy. Market turned southward and continued to extend losses on profit booking after previous session’s gains. Meanwhile, most of the Asian stocks ended lower, which led selling pressure in the domestic stocks. BSE Sensex ended below 15,100 level and NSE Nifty closed below 4,500 mark.
Market opened marginally up on positive cues from the US markets. On Monday, the US stocks gained remarkably overnight on the back of better corporate earnings and firm buying sentiments. Moreover, the S&P 500 closed at its best levels of the year on reports of CIT deal to avert bankruptcy and the better than expected economic data. Indian benchmark indices trimmed all gains soon after start and slipped on profit booking after a sharp rally in the previous session. However, market tried to recover on positive European markets before sliding again. Further, weakness continued till end as investors continued to trade carefully to remain on sideline after recent rally. From the sectoral front, IT, Power, Tech, PSU, Bank and Realty stocks contributed to most of the selling pressure. However, Metal and Auto stocks were in limelight as witnessed most of the buying from these baskets. Broader market indices were mixed as BSE Mid Cap index observed selling pressure whereas BSE Small Cap index remained in buyers’ radar.
Among the Sensex pack 21 stocks ended in red territory and 9 in green. The market breadth indicating the overall health of the market remained negative as 1343 stocks closed in red while 1289 stocks closed in green and 86 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 128.52 points or (0.87%) at 15,062.49 and NSE Nifty ended down by 33.15 points or (0.74%) at 4,469.10. BSE Mid Caps closed with losses of 9.88 points at 5,225.21 whereas Small Caps closed with gains of 13.95 points at 5,837.82. The BSE Sensex touched intraday high of 15,234.21 and intraday low of 14,955.88.
Losers from the BSE Sensex pack are TCS Ltd (4.54%), BHEL (2.67%), M&M Ltd (2.59%), ITC Ltd (2.53%), ACC Ltd (2.51%), NTPC Ltd (2.48%), Tata Power (2.35%), Sterlite Industries (2.32%), DLF Ltd (2.07%), ICICI Bank (1.92%), Infosys Tech (1.50%), ONGC Ltd (1.49%), Bharti Airtel (1.35%), RCom (0.87%), Herohonda Motors (0.78%) and SBI (0.74%).
Gainers from the BSE Sensex pack are Tata Steel (5.28%), Maruti Suzuki (2.62%), HUL (1.12%), JP Associates (1.08%), Grasim Industries (0.95%) and L&T Ltd (0.91%).
On the global markets front the Asian markets that opened before the Indian market, ended mostly lower. Shanghai Composite, Hang Seng and Straits Times ended lower by 53.71, 0.64 and 1.82 points at 3,213.21, 19,501.73 and 2,454.33 respectively. Stocks weakened on wariness after a recent rally led by stronger earnings from global companies. However, Nikkei 225 and Seoul Composite gained 256.70 and 10.46 points at 9.652.02 and 1,488.99 respectively.
European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading up by 41.14 points at 5,071.29 and in London FTSE 100 is trading higher by 26.26 points at 4,469.88.
The BSE IT index ended lower by (1.74%) or 65.58 points at 3,694.03. Losers are TCS Ltd (4.54%), Patni Computer (3.37%), HCL Tech (2.52%), Moser Bayer (2.52%) and Oracle Fin (1.95%).
The BSE Power index decreased by (1.70%) or 49.07 points to close at 2,829.18. Main losers are Suzlon Energy (3.45%), BHEL (2.67%), NTPC Ltd (2.48%), Tata Power (2.35%), GMR Infra (2.20%) and Torrent Power (2.20%).
The BSE PSU index lost (1.40%) or 115 points at 8,087.39. Gujarat hind Copper (4.85%), Hindustan Copper (4.38%), Gail India (3.57%), Canara Bank (2.86%) and BHEL (2.67%) closed in negative territory.
The BSE Teck ended down by (1.40%) or 39.77 points at 2,801.55. IOL Netcom (4.90%), TCS Ltd (4.54%), Balaji Tele (4.28%), Patni Computer (3.37%) and Tele Eighteen (2.94%) ended in red territory.
The BSE Bank index dropped by (1.39%) or 118.28 points at 8,369.02. Scrips that lost are Indus Ind Bank (4.54%), Oriental Bank (4.38%), Kotak Bank (4.18%), Canara Bank (2.86%) and Bank of Baroda (2.36%).
The BSE Metal stocks gained (1.25%) or 142.37 points to close at 11,512.01. Major gainers are Tata Steel (5.28%), Jindal Steel (5.09%), Jindal Saw (3.77%), Ispat Industries (3.35%) and Steel Authority (1.96%).
Oriental Bank of Commerce ended lower by 4.38%. The bank has posted a net profit of Rs 2574.10 million for the quarter ended June 30, 2009 as compared to Rs 2205.20 million for the quarter ended June 30, 2008. Total Income has increased from Rs 21592.10 million for the quarter ended June 30, 2008 to Rs 27961.00 million for the quarter ended June 30, 2009.
KPIT Cummins Infosystems Ltd weakened 3.76% after net profit fell 34.79% to Rs 16.25 crore in Q1 June 2009 as against Q4 March 2009.
Tata Communications dropped by 1.95%. The company announced the launch of a new 10 Gigabit Ethernet (10 GigE) service to help service providers meet growing market demands for high-speed, secure and cost-effective bandwidth.
HDFC Bank closed down by 0.56%. The country’s second largest private sector lender has slashed benchmark prime lending rate (BPLR) by 25 basis points to 15.75% per annum with effect from July 20. The bank had also reduced its fixed deposits rate effective from June 19 by half a percentage point.
State Bank of India (SBI) dropped by 0.74%. The bank has increased the market share as the SBI group increased its share of deposits by 1.5% during FY09 from that in the previous fiscal. At the end of FY08, the banking group’s share of deposits stood at 22.6%, which at present accounts for more than 24% of bank deposits in the country.
National Aluminium Company Ltd (Nalco) gained 0.39%. The Union ministry of environment and forests (MoEF) has approved four environment-oriented projects of the company under Clean Development Mechanism (CDM).
Petron Engineering Construction Ltd closed higher by 4.89%. The company has received an Order from Jaiprakash Associates Ltd for Mechanical Fabrication and Erection for Jaypee Balaji Cement Project, Near Village Budhwada, Dist. Krishna, Andhra Pradesh for a total Contract Value of Rs 4810 Lakhs.
Ranbaxy Laboratories Limited (RLL) ended up by 0.20%. The company has received final approval in Canada to manufacture and market Ran-Simvastatin 5 mg, 10 rng, 20 mg, 40 mg and 80 mg tablets (Simvastatiri) from Health Canada, Therapeutic Products Directorate (TPD).
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
21/7/2009 524412 AAREY DRUGS NIKHIL VINUKANT SHAH B 25000 48.50
21/7/2009 524412 AAREY DRUGS SHAISHIL TUSHARKUMAR JHAVERI S 25000 48.50
21/7/2009 520077 AMTEK AUTO L MAVI INVESTMENT FUND B 4933771 100.00
21/7/2009 520077 AMTEK AUTO L UBS SECURITIES ASIA LTD. A/C SWISS FIN. CORP. (MAU S 5000000 100.01
21/7/2009 531223 ANJANI SYNTH NARENDRA VALLABHAJI BAHUVA B 63866 54.54
21/7/2009 531223 ANJANI SYNTH NARENDRA VALLABHAJI BAHUVA S 56282 54.53
21/7/2009 531381 ARIH FOUND H S JAYALAKSHMI B 106105 223.87
21/7/2009 531381 ARIH FOUND H COPTHALL MAURITIUS INVESTMENT LIMITED S 72889 223.95
21/7/2009 512149 AVANCE TECHN LALIT HIMTLAL SHAH B 40000 47.03
21/7/2009 590076 CAMSON BIO ABHIJAT DEEPAK HOLDING PVT.LTD. S 63000 41.30
21/7/2009 590076 CAMSON BIO GRAND SLAM INVESTMENT PVT LTD S 60000 40.50
21/7/2009 511636 DJS STOCK SH SHOHESH P SHAH S 103800 35.11
21/7/2009 517973 DMC INTER RAJESH AGRAWAL HUF B 20000 6.78
21/7/2009 532707 DYNEMIC PRO VIRENDR AAGRAWAL B 80000 18.40
21/7/2009 532707 DYNEMIC PRO PRANAV JHAWAR B 100000 18.40
21/7/2009 532707 DYNEMIC PRO ALOK DIRODIA B 70000 18.40
21/7/2009 532707 DYNEMIC PRO AADHAR ASHOK SIGTIA S 103906 18.40
21/7/2009 531127 ENRICH INDUT ASHUTOSH YASHWANTRAI PANDYA B 65000 3.55
21/7/2009 531127 ENRICH INDUT JAYESH KUMAR JAYANTILAL PANDYA B 40000 3.55
21/7/2009 531127 ENRICH INDUT DHARMENDRAMAL DEVBHAI AHIR B 35000 3.55
21/7/2009 531127 ENRICH INDUT REKHABEN DHARMENDRABHAI AHIR B 40000 3.55
21/7/2009 531127 ENRICH INDUT DINESH MADHUKAR BHANARKAR B 40000 3.55
21/7/2009 531127 ENRICH INDUT KAVITA DINESH BHANARKAR B 35000 3.55
21/7/2009 531127 ENRICH INDUT KAUSHAL ASHWIN GANDHI S 300000 3.55
21/7/2009 531777 INTELLVIS SO GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD S 44267 20.90
21/7/2009 516078 JUMBO BAG LT NIKHIL S SHAH B 67000 67.47
21/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 65187 67.58
21/7/2009 516078 JUMBO BAG LT KANSARA NIRAV GUNVANTRAY HUF B 45000 67.44
21/7/2009 516078 JUMBO BAG LT KANSARA PUNITA N B 40000 68.30
21/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 65196 67.52
21/7/2009 590084 KANCO ENTER KISHOR SHAH B 131000 4.30
21/7/2009 590084 KANCO ENTER SHAH INVESTMENT CONSULTANTS PVT LTD S 128000 4.30
21/7/2009 502933 KATARE SPG. RAMESH G GOKANI B 35000 12.78
21/7/2009 502933 KATARE SPG. IFCI LIMITED S 17800 12.73
21/7/2009 502933 KATARE SPG. AMI STOCK & SHARE BROKERS PVTLTD S 35000 12.78
21/7/2009 502933 KATARE SPG. BHARAT KUMAR N. VACHHANI S 14062 12.00
21/7/2009 530255 KAY POW PAP SUNIL KUMAR GUPTA B 126794 6.80
21/7/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 53721 6.76
21/7/2009 530255 KAY POW PAP SUNIL KUMAR GUPTA S 112347 6.32
21/7/2009 531261 KUSHAGRA SO MAKKHAN LAL SHARMA HUF S 88400 5.97
21/7/2009 531731 KUVAM INTL PRAVIN K TANK B 20000 10.96
21/7/2009 531731 KUVAM INTL AMITA MAHENDRA PARMAR B 40000 10.96
21/7/2009 531731 KUVAM INTL JAIKISHAN BHIMSAIN DHINGRA B 20000 10.96
21/7/2009 531731 KUVAM INTL RAJNI NAYYAR B 50000 10.96
21/7/2009 531731 KUVAM INTL ALPA KETAN SHAH B 25000 10.96
21/7/2009 531731 KUVAM INTL WALBAI NARAYAN BAROT B 20000 10.96
21/7/2009 531731 KUVAM INTL PREMILA SOMESHWAR JOSHI B 20000 10.96
21/7/2009 531731 KUVAM INTL KAJAL PIYUSH GOSAR B 20000 10.96
21/7/2009 531731 KUVAM INTL SANDEEP SALVE B 25000 10.96
21/7/2009 531731 KUVAM INTL HETAL BARU B 15500 10.96
21/7/2009 531731 KUVAM INTL ANIL KUMAR SINGHAL S 21000 10.96
21/7/2009 531731 KUVAM INTL SANJEEV KUMAR GUTPA S 119000 10.96
21/7/2009 531731 KUVAM INTL KAMLESH GUPTA S 120000 10.96
21/7/2009 533088 MAH HOLIDAY OPG SECURITIES P LTD B 442902 362.75
21/7/2009 533088 MAH HOLIDAY OPG SECURITIES P LTD S 442902 362.88
21/7/2009 532907 MAYTAS INFRA HITESH SHASHIKANT JHAVERI B 351981 74.69
21/7/2009 532907 MAYTAS INFRA BP FINTRADE PRIVATE LIMITED B 312545 74.60
21/7/2009 532907 MAYTAS INFRA HITESH SHASHIKANT JHAVERI S 314414 74.67
21/7/2009 532907 MAYTAS INFRA BP FINTRADE PRIVATE LIMITED S 441742 74.63
21/7/2009 532986 NIRAJ CEMENT AYODHYAPATI INVESTMENT PVT LTD S 59075 29.57
21/7/2009 526723 RDB INDUST L CHANDRAKANT JVALLAKATI B 64948 91.99
21/7/2009 526723 RDB INDUST L CHANDRAKANT JVALLAKATI S 64948 93.43
21/7/2009 531952 RIBA TEXTILE PATEL NITABEN SHAILESHBHAI B 64002 49.77
21/7/2009 531952 RIBA TEXTILE BELA TUSHAR ZAVERI S 34800 49.70
21/7/2009 507508 RIGA SUGAR C S. SIKARIA AND CO. B 33000 30.65
21/7/2009 507508 RIGA SUGAR C ASHIS KUMAR LAHIRI S 33000 30.65
21/7/2009 531901 SAARC NET GOVIND SHARDA S 477326 1.49
21/7/2009 512048 SPLASH MEDIA GIGALAL NIRMALKUMAR JAIN B 6500 103.25
21/7/2009 512048 SPLASH MEDIA HITESH BABUBHAI DOBARIYA S 9405 103.22
21/7/2009 590037 STEEL EXCH KIRAN SUTTAMCHAND B 292911 29.04
21/7/2009 590037 STEEL EXCH MITTAL SECURITIES FINANCE LIMITED S 300000 29.04
21/7/2009 526133 SUPERTEX IND ARCHI STEEL WIRES PVT.LTD. B 50000 57.40
21/7/2009 526133 SUPERTEX IND HARISH RATILAL SHAH S 67500 57.53
21/7/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 56155 57.86
21/7/2009 531249 WELL PACK PA KAUSHIK RAJNIKANT MEHTA B 62000 161.85
21/7/2009 531249 WELL PACK PA BHAVESH PRAKASH PABARI S 30000 161.85
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
21-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,218739,924.67,-
21-JUL-2009,DISHTV,Dish TV India Limited,JASWANT JAYANTILAL SHAH,BUY,2300000,41.09,-
21-JUL-2009,EDSERV,Edserv Softsystems Limite,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,BUY,64250,41.58,-
21-JUL-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,BUY,45191,41.69,-
21-JUL-2009,EDSERV,Edserv Softsystems Limite,SETU SECURITIES LTD,BUY,61830,41.61,-
21-JUL-2009,EDSERV,Edserv Softsystems Limite,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,34656,41.70,-
21-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,14402996,21.45,-
21-JUL-2009,JBMA,JBM Auto Limited,AMITY INFOTECH PVT.LTD.,BUY,1000000,30.90,-
21-JUL-2009,MAYTASINFR,Maytas Infra Limited,BP FINTRADE PRIVATE LIMITED,BUY,364405,74.73,-
21-JUL-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1168377,18.23,-
21-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,218739,925.16,-
21-JUL-2009,DISHTV,Dish TV India Limited,JASWANT JAYANTILAL SHAH,SELL,56202,39.90,-
21-JUL-2009,EDSERV,Edserv Softsystems Limite,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,SELL,80666,41.61,-
21-JUL-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,SELL,60162,41.17,-
21-JUL-2009,EDSERV,Edserv Softsystems Limite,SETU SECURITIES LTD,SELL,60821,41.60,-
21-JUL-2009,EDSERV,Edserv Softsystems Limite,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,63291,41.21,-
21-JUL-2009,EMAMILTD,Emami Limited,RELIANCE TRADING ENTERPRISES LTD.,SELL,400000,354.01,-
21-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,13834943,21.45,-
21-JUL-2009,JBMA,JBM Auto Limited,VALOUR CONSTRUCTION LTD.,SELL,1000000,30.90,-
21-JUL-2009,MAYTASINFR,Maytas Infra Limited,BP FINTRADE PRIVATE LIMITED,SELL,330631,74.67,-
21-JUL-2009,MAYTASINFR,Maytas Infra Limited,IFCI LTD.,SELL,600000,74.85,-
21-JUL-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1168857,18.23,-
Key benchmark indices fell in volatile trade as profit booking emerged after a recent solid surge. However firm European stocks capped the fall. The BSE 30-share Sensex was down 128.52 points or 0.85%, up close to 105 points from the day's low and off close to 175 points from the day's high. IT, realty and power stocks fell. Some metal stocks rose after Tata Steel raised $500 million from an issue of global depository receipts (GDR).
The market breadth, indicating the overall health of the market was negative. Concerns of impact of below average rains on the economy weighed on the sentiment.
The market was volatile. Profit taking pulled the key benchmark indices lower after a higher start triggered by firm global markets. The market cut losses in mid-morning trade. However, the intraday recovery proved short lived and the market lost ground again in early afternoon trade. The barometer index BSE Sensex regained 15,000 level soon after sliding below that level in early afternoon trade. Volatility was high in mid-afternoon trade.
Equities had witnessed a solid run up in the past few days with good initial batch of Q1 June 2009 lifting sentiment. From a recent low of 13,400.32 on 13 July 2009, the Sensex had risen 1,790.69 points or 13.36% in just five trading sessions to 15,191.01 on Monday, 20 July 2009.
Union Agriculture Minister Sharad Pawar on Monday said the overall agriculture situation due to an inadequate South-West monsoon so far was quite serious, and that the government was taking all steps to face the situation. Monsoon was 27% below normal during the period from 1 June 2009 to 15 July 2009. Spatial distribution and actual rain during July and August are vital to determine its consequences on overall economy. More than two-thirds of the people in India live in villages and 60% of the farm land depends on the annual rains.
Finance Secretary Ashok Chawla on Monday said the Centre and state governments are trying to ensure adequate supply of power and diesel for farmers to help them exploit ground water resources to the maximum.
The deputy chairman of the Planning Commission Montek Singh Ahluwalia said on Tuesday that India's economy does not need any more stimulus packages from the government. He said the Union Budget 2009-2010 includes a very significant boost in plan expenditure and investment.
Indian policymakers may reportedly raise foreign investment limit on government debt securities. Foreign investment in government debt is capped at $5 billion and at $15 billion in corporate debt, and the move if done is seen as ensuring demand for the government's record borrowing plan of Rs 4,51,000 crore ($94 billion) in 2009/10. The borrowing target, unveiled in the 6 July budget, is three times more than last year's and is aimed to bridge a fiscal deficit of 6.8 %, the biggest in 16 years.
The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 246 companies rose 42.8% Rs 12,717 crore on 10.9% growth in sales to Rs 96,767 crore in Q1 June 2009 over Q1 June 2008.
European shares rose on Tuesday, rising for a seventh straight day, following overnight gains US stocks and amid another batch of second-quarter earnings. Key benchmark indices in France, Germany and UK were up by between 0.9% to 1.33%.
Asian stocks were mixed. Key benchmark indices in Singapore, China and Hong Kong were down by between 0.07% to 1.64%. Key benchmark indices in Taiwan, Japan and South Korea were up by between 0.21% to 2.73%.
Trading in the US index futures indicated the Dow could rise 36 points at the opening bell today, 21 July 2009.
US stocks rallied on Monday, pushing the S&P 500 to an eight-month closing high, after CIT Group Inc was thrown a lifeline to avoid bankruptcy, and investors bet corporate America would log another strong set of earnings this week. CIT lends to nearly one million small and mid-sized US businesses.
The S&P 500 index closed at its best levels of the year and at 8-month highs above the psychologically important level of 950. Goldman Sachs has raised its year-end target for the index to 1,060 from 940.
The Dow gained 104.21 points, or 1.2%, to 8,848.15. The S&P 500 index rose 10.75 points, or 1.1%, to 951.13 and the Nasdaq Composite Index added 22.68 points, or 1.2%, to 1,909.29.
On the economic data front, an index which gauges US economic prospects for the next six to nine months, increased in June for the third straight month, suggesting the recession was drawing to a close.
The BSE 30-share Sensex was down 128.52 points or 0.85% at 15,062.49. At the day's high of 15,234.21, the Sensex rose 43.20 points in early trade. At the day's low of 14,955.88, the Sensex fell 235.13 points in early afternoon trade.
The S&P CNX Nifty was down 33.15 points or 0.74% to 4,469.10. Nifty July 2009 futures were at 4471.15, at a premium of 2.05 points as compared to the spot closing of 4469.10. Turnover in NSE's futures & options (F&O) segment was Rs 65,459.06 crore, lower than Rs 70,008.60 crore on Monday, 20 July 2009.
BSE clocked a turnover of Rs 6,190 crore which was almost equal to Monday's Rs 6,193.18 crore.
The barometer index BSE Sensex is up 5,415.18 points or 56.13% in calendar year 2009 as on 21 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 6,902.09 points or 84.5% as on 21 July 2009.
Coming back to today's trade, the market breadth, indicating the overall health of the market was negative. On BSE, 1,283 shares rose as compared with 1,343 that fell. A total of 86 shares remained unchanged.
From the 30 shares Sensex pack, 21 fell and rest rose.
The BSE Mid-Cap index was down 0.19%. The BSE Small-Cap index was up 0.24%. Both the indices outperformed the Sensex.
The BSE Metal index (up 1.25%), the BSE Auto index (up 0.11%), the BSE Healthcare index (up 0.02%), the BSE Capital Goods index (down 0.18%), the BSE Consumer Durables index (down 0.21%), the BSE FMCG index (down 0.85%), outperformed the Sensex.
The BSE IT index (down 1.74%), the BSE Power index (down 1.7%), the BSE PSU index (down 1.4%), the BSE TECk index (down 1.4%), the BSE Bankex (down 1.39%), the BSE Realty index (don 1.23%), the BSE Oil & Gas index (down 0.99%), underperformed the Sensex.
India's largest private sector firm by market capitalisation Reliance Industries (RIL) fell 0.65% to Rs 2,017.55. The stock hit a high of Rs 2,044.90 and a low of Rs 2,007.15. The stock had risen 5.03% on Monday, 20 July 2009, after the Supreme Court asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. The news hit the market during trading hours that day. The court has scheduled next hearing on the dispute over the gas supply to Reliance Natural Resources (RNRL) on 1 September 2009.
RNRL has asked the Supreme Court to dismiss the government's affidavit on the dispute, even as the petroleum ministry has suggested that the court treats the pact between the two brothers null and void. The dispute concerns supply of natural gas from RIL's field, off the Andhra Pradesh coast, as also the price at which Reliance Natural Gas will get the fuel for power projects within the group.
In reply to the lawsuit filed by Reliance Industries challenging the Bombay High Court order, RNRL has said the government has no role to play in the private gas sharing dispute, and certainly not as a party to the row. The government, however, has said that the country's interest must be taken into consideration first and that cannot be held to ransom by a dispute between two industrialists or a previous, private pact between them.
Shares of oil exploration firms fell even after crude oil rose for a fifth day today on speculation that fuel demand will increase as gains in equity markets spurred optimism the global recession is ending. India's largest state-run oil exploration firm by revenue ONGC fell 1.49%. Cairn India fell 0.18%. Crude oil for August delivery rose 0.45% to $64.27 a barrel on the New York Mercantile Exchange. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.
Metal stocks rose as LMEX, a gauge of six metals traded on the London Metal Exchange rose 1% on Monday, 20 July 2009. JSW Steel, Jindal Steel, Hindalco Industries, Steel Authority of India, rose by between 0.11% to 5.09%.
India's largest steel maker by sales Tata Steel jumped 5.28% reversing losses in early trade after the company said on Tuesday it has launched an issue of issue global depository receipts (GDR). The stock came off the day's low of Rs 377. The company today, 21 July 2009, said it will raise $500 million and priced each GDR at $7.644. Each GDR issue represents one underlying equity share. The issue will result in equity dilution of nearly 9%. The company will use the funds for expansion projects.
IT stocks fell on profit taking after Monday's sharp rally triggered by better-than-expected Q1 June 2009 result by India's largest IT exporter by sales TCS after trading hours on Friday, 17 July 2009. TCS fell 4.52% after surging 15.34% on Monday. The company's net profit rose 15.27% to Rs 1276.44 crore on 0.12% fall in sales to Rs 5609.60 crore in Q1 June 2009 over Q4 March 2009.
India's largest IT firm by sales Infosys fell 1.5%. The stock had risen 5.66% on Monday. The company had raised the lower end of its annual forecast in dollar terms at the time of announcing Q1 June 2009 results on 10 July 2009. Its ADR rose 5.01% overnight.
India's third largest IT exporter by sales Wipro fell 0.46% ahead of its Q1 June 2009 result on Wednesday, 22 July 2009. Its American depository receipt (ADR) rose 4.44% on Monday, 20 July 2009.
Power stocks fell on disappointment from the Budget early this month. There was lack of any major sops in the Budget for the power sector. Reliance Power, Reliance Infrastructure, Tata Power Company, NTPC, Power Grid Corporation of India, fell by between 0.27% to 2.67%.
India's largest car maker by sales Maruti Suzuki India rose 2.62% ahead of its Q1 June 2009 result on Thursday, 23 July 2009.
Realty stocks fell on profit taking after a recent surge triggered by government's thrust on the housing sector in the Budget. Unitech, Housing Development & Infrastructure, Omaxe, Indiabulls Real Estate, DLF, Ackruti City fell by between 0.91% to 2.48%.
Some cement stocks rose after a robust Q1 result by Ultratech Cement. Ultratech Cement rose 0.67% after net profit rose 61.41% to Rs 427.77 crore on 30.5% rise in total income to Rs 1,987 crore in Q1 June 2009 over Q1 June 2008.
Birla Corporation of India and Grasim Industries rose by between 0.95% to 4.04%.
Construction stocks, rose after thrust on infrastructure sector in the Union budget 2009-2010. Era Infra Engineering, Hindustan Construction Company, Gayatri Projects, JP Associates rose by between 0.35% to 3.5%.
Finance Minister Pranab Mukherjee on 6 July 2009, provided a thrust on various infrastructure projects in the Budget which may result in increase in orders for construction firms and help boost cement demand. 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.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 0.91%. The company, last week, stood by its stated outlook of 25% growth in order inflows for the current year even as the first quarter ended with a negative note. At the time of announcing Q1 June 2009 results, L&T had during trading hours on Thursday, 16 July 2009 said its order inflow was down 22 % in Q1 June 2009 over Q1 June 2008. The company's order backlog at the end of the June quarter was Rs 71, 650 crore ($14.7 billion).
Other capital goods stocks, Punj Lloyd, Praj Industries, BEML, ABB, Crompton Greaves, rose by between 0.77% to 3.84%.
Some drug makers rose after the Finance Minister Pranab Mukherjee reduced customs duty on life saving drugs in the Budget. Biocon, Ranbaxy Laboratories, Sun Pharmaceutical Industries , Cipla rose by between 0.16% to 1.01%.
Dr Reddy's Laboratories fell 0.18%. The company after market hours today said net profit rose 8.27% to Rs 227.44 crore on 9.13% rise in total income to Rs 1,220.71 crore in Q1 June 2009 over Q1 June 2008.
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.
Bank stocks fell on profit taking after recent gains triggered by the government's commitment to financial sector reforms. Finance Secretary Ashok Chawla on 17 July 2009, said the government will introduce seven bills in parliament, including proposals for pension and banking reforms and efforts to raise the foreign investment limit in insurance companies.
India's largest private sector bank by net profit ICICI Bank fell 1.92% even as its American depository receipt (ADR) rose 9.19% overnight.
India's biggest bank in terms of branch network State Bank of India (SBI) fell 0.74% on recent reports the Reserve Bank of India has asked it to set aside more money for bad loans, noting that provisions made by the bank are far short of the industry average.
India's second largest private sector bank in terms of operating income HDFC Bank fell 0.56%. Its ADR rose 6.61% overnight. The bank on Monday, 20 July 2009, slashed its benchmark lending rate by 25 basis points to 15.75%. The cut in lending rate follows the reduction in the fixed deposits rate effective from 18 May 2009, the private sector bank said.
HDFC Bank's net profit rose 30.52% to Rs 606.11 crore on 21.86% rise in total income to Rs 5136.75 crore in Q1 June 2009 over Q1 June 2008. Other income jumped 75.9% to Rs 1043.70 crore in Q1 June 2009 over Q1 June 2008, due to spurt in fees and commissions. The bank announced the result on 14 July 2009.
Yes Bank was flat at Rs 153.45 even as net profit surged 84.19% to Rs 100.07 crore in Q1 June 2009 over Q1 June 2008. The private sector bank announced the results during trading hours today
Axis Bank fell 0.39% on profit taking after recent sharp gains triggered by robust Q1 June 2009 results announced during market hours on 13 July 2009. Net profit rose 70.24% to Rs 562.04 crore on 33.64% rise in total income to Rs 3864.13 crore in Q1 June 2009 over Q1 June 2008. The bank
Unitech clocked the highest volume of 2.58 crore shares on BSE. Mahindra Satyam (2.45 crore shares), Ispat Industries (2.44 crore shares), IFCI (1.82 crore shares) and Cals Refineries (1.72 crore shares) were the other volume toppers in that order.
Tata Steel clocked the highest turnover of Rs 390.14 crore on BSE. Mahindra Satyam (Rs 231.55 crore), Unitech (Rs 210.31 crore), Reliance Capital (Rs 207.49 crore) and ICICI Bank (Rs 151.89 crore) were the other turnover toppers in that order.
Excel Infoways Ltd. 80 to 85
Premium : 5 to 6
Raj Oil Mills Ltd. 100 to 120
Premium: 2 to 3
Adani Power 90 to 100 (Approximate)
Premium: 8 to 9
NHPC 15 to 20 (Approximate)
Premium: 3 to 4
Today domestic markets are likely to open positive. The US markets have gained remarkably overnight on the back of better corporate earnings and firm buying sentiments. However in the Asian space majority of markets are trading subdued as they have gained enough during the last couple of days. At this peak level one could witness a subdued trading in the domestic markets as well. There could be some profit booking pressures at higher level.
On Monday, domestic markets closed with phenomenal gains. Exemplary first quarter results from TCS coupled with strong bullish sentiments from Asian markets propelled domestic Sensex to breach the 15k mark. There was some short covering happening across broader level as traders were expecting markets to fall, however as the markets picked up traders squared off positions to minimize losses. TCS posted better-than-expected 22 per cent growth in net profit to 15.20 billion rupees. Revenue rose 12 per cent to 72.07 billion rupees. European markets gave a lot of support to the early surge in domestic arena. Amongst sectors IT, Realty, Teck and Bankex were the leaders with gains of 7.26%, 4.91%, 4.78% and 4.37% respectively. BSE Mid Caps and Small Caps also gained by 2.54% and 2.52% respectively. Today markets are likely to trade positive with an essence of volatility.
The BSE Sensex closed with phenomenal gain of 446.09 points at 15,191.01 and NSE Nifty ended higher by 127.30 points at 4,502.25. BSE Mid Caps and Small Caps closed with gains of 129.50 and 142.97 points at 5,235.09 and 5,823.87 respectively. The BSE Sensex touched intraday high of 15,209.36 and intraday low of 14,854.17.
On Monday, the US stocks markets closed higher on the back of better than expected corporate earnings and also CIT group coming up with news to secure $3 billion rescue financing. On a corporate earnings aspect companies like Halliburton (HAL 22.33 +0.95) Hasbro (HAS 26.45 +1.07), Johnson Controls (JCI 23.08 +1.56), and Eaton (ETN 48.94 +3.99) all reported better-than-expected second quarter results before the opening bell. Traders were also inspired by news that Goldman Sachs has raised their 2009 target for the S&P 500 to 1060. On the macro economic aspect, June leading indicator data was better than expected at +0.7% as against the consensus +0.5%. Tomorrow will be a crucial day in the corporate earnings space as companies like Caterpillar (CAT 36.65 +2.66), Coca-Cola (KO 51.03 +0.71), Apple (AAPL 152.91 +1.16), Yahoo (YHOO 17.01 +1.01), and UnitedHealth (UNH 24.84 -0.25) will declare their results. US light crude oil futures for August delivery closed at $64.12 per barrel up by 0.8% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 104.21 points at 8,848.15, NASDAQ index gained 22.7 points to 1,909.29 and the S&P 500 (SPX) closed up by 10.8 points at 951.13.
Indian ADRs surged on Monday with IT and Banking space gaining the most. In the banking space, ICICI Bank was up 9.19% and HDFC Bank was up 6.61%. In the IT space, Infosys was up 5.01%, Satyam Computers was up 5.69%, Wipro was up 4.44% and Patni Computers was up 4.26%. In the telecom space, Tata Communication was up 1.88% while MTNL was down 1.03%. In other sectors, Tata Motors was up 3.41%, Dr Reddy''s Labs was up 2.39% and Sterlite Industries was up 2.48%.
The FIIs on Monday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 2,846.60 Crore and gross debt purchased stood at Rs 859.70 Crore while the gross equity sold stood at Rs 2,586.60 Crore and gross debt sold stood at Rs 525.70 Crore. Therefore, the net investment of equity reported was Rs 260.00 Crore and net debt was Rs 334.00 Crore.
On Monday, the partially convertible rupee ended at Rs 48.20/21, 1.08% stronger than its previous close at 48.73/74. The rupee gained strength on the back of phenomenal rally in domestic stock markets.
On BSE, total number of shares traded were 44.63 Crore and total turnover stood at Rs 6,193.18 Crore. On NSE, total number of shares traded were 99.73 Crore and total turnover was Rs 19,072.38 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 59801090 shares, followed by Suzlon Energy with 54156485, TCS with 17260270, DLF with 13305997 and Hindalco with 11455750 shares.
On NSE Future and Options, total number of contracts traded in index futures was 698026 with a total turnover of Rs 15,059.83 Crore. Along with this total number of contracts traded in stock futures were 655143 with a total turnover of Rs 19,731.47 crore. Total numbers of contracts for index options were 1488378 with a total turnover of Rs 33,099.06 Crore and total numbers of contracts for stock options were 67992 and notional turnover was Rs 2,117.71 Crore.
Today, Nifty would have a support at 4,476 and resistance at 4,586 and BSE Sensex has support at 15,080 and resistance at 15,392.
The key benchmark indices may open in green extending recent solid surge tracking gains in most of Asia and strong surge in US stocks overnight. Encouraging Q1 results by India Inc may also support market. However, profit taking may not be ruled out considering the recent sold gains in indices.
The key benchmark indices clocked strong gains, on Monday, 20 July 2009 extending last week's sharp climb, as encouraging Q1 June 2009 results from India Inc and firm global stocks boosted sentiment. The BSE 30-share Sensex rose 446.09 points or 3.03% to 15,191.01. The barometer indices struck its highest closing in more than a month. From a recent low of 13,400.32 on 13 July 2009, the Sensex has risen 1,790.69 points or 13.36% in five trading sessions.
As per the provisional; figures on NSE, foreign funds bought shares worth Rs 563.20 crore and the domestic funds bought shares worth Rs 151.85 crore on Monday.
Lower costs have helped India Inc report Q1 June 2009 results. The combined net profit of 216 companies rose 45.5% Rs 11,288 crore on 10.2% growth in sales to Rs 83,441 crore in Q1 June 2009 over Q1 June 2008. Wipro, Banco Produsts India, Binani Cement, Chambal Fertilisers and Chemicals, Renuka Sugars, Ultratech Cements, Zuari Industries among others will announce their quarter ended June 2009 result today.
Most Asian stocks were trading higher today after a firm start after Goldman Sachs Group Inc. raised its estimate for the U.S. Standard & Poor's 500 Index. The key benchmark indices in Singapore, Taiwan, Japan and South Korea rose by between 0.12% to 1.35%. The key benchmark indices in China and Hong Kong fell by between 0.28% to 0.41%.
U.S. stocks rallied on Monday, pushing the S&P 500 to an eight-month closing high, after CIT Group Inc was thrown a lifeline to avoid bankruptcy, and investors bet corporate America would log another strong set of earnings this week.. The S&P 500 index closed at its best levels of the year and at 8-month highs above the psychologically important level of 950.This is after the Goldman Sachs has raised its year-end target for the index to 1,060 from 940.
The Dow gained 104.21 points, or 1.2%, to 8,848.15. The S&P 500 index rose 10.75 points, or 1.1%, to 951.13 and the Nasdaq Composite Index added 22.68 points, or 1.2%, to 1,909.29.
The extra boost to the rally also came from the June 2009 leading indicator. The data was better than expected at 0.7%. This marked the third straight monthly increase, which has, however, come at a slower pace than the increases for April and May.
Back home, progress of India's annual monsoon may concern investors. The government on Monday said it will prepare a "back up" plan to neutralise the impact of truant monsoon on agriculture and the country's economic growth. Finance Secretary Ashok Chawla said, the Centre and state governments are trying to ensure adequate supply of power and diesel for farmers to help them exploit ground water resources to the maximum. As regards assessment of the monsoon situation, the Finance Secretary said, It continues to be a problem in some parts of central India and parts of north west India. Spatial distribution and actual rain during July and August are vital to determine its consequences on overall economy. Indian Meteorological Department has already predicted 98% of normal monsoon during August.
After gaining 450 points in the last session the market is likely to head northwards on firm Asian indices, which are up around 1% in morning trades. However, FIIs remaining net buyers in equities for last couple of sessions may bring some cheers to the market. Among the domestic indices, the Nifty could test higher levels of 4550 and may dip to 4450 on the downside. The Sensex has a likely support at 15050 and may face resistance at 15350.
Major US indices rose Monday, with the Dow adding more than 100 points and the S&P closing at an 8-month high, as investors signaled optimism about second-quarter financial reports. While the Dow Jones flared up by 104 points at 8848, the Nasdaq moved up by 23 points to close at 1909.
Among the Indian ADRs trading on the US bourses, 1 out of 11 floats ended on a negative turf. ICICI Bank led the upward move and gained 9.19% while Infosys, Satyam, Wipro, HDFC Bank, Rediff and Patni Computer gained over 4-6% each. While only Tata Motors, Dr Reddy and VSNL gained 1-3% each. MTNL however closed in negative territory with marginal loss.
Crude oil prices gained, with the Nymex light crude oil for August delivery raised by 42 cents to close at $63.98 a barrel. In the commodity space, the Comex gold for June delivery advanced $11.30 to settle at $948.80 an ounce.
Daily trend of FII/MF investment in equities
On July 17 2009, FIIs were net buyers of stocks to the tune of Rs260 crore (purchases worth Rs2846 crore and sales of Rs2586 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs742 crore (purchases worth Rs1452 crore and sales of Rs710 crore).
Importnat Results ==> UltraTech, LIC Housing, YES Bank, Dr. Reddy's,Esab India , Shree Renuka , Thermax
Stocks with +ve Bias: DLF (SL 342), TCS (SL 488) & BEL
Short term delivery: Tech Mah Buy near 787 s/l 765 Target - 862-63
Stocks with -ve Bias: Tisco (SL 396)
Stocks for Investment: IDBI Bank, EMCO Ltd, Ultratech Cement & Bajaj Holdings
We recommend a buy in UTV Software Communications from a short-term trading perspective. It is apparent from the charts of UTV Software that after a medium-term decline from the resistance level of Rs 479, the stock appears to have resumed its intermediate-term uptrend that has been in place since its March low of Rs 182. Recently, the stock found support at significant support band of Rs 300-310 and started moving up. On July 20, the stock surged almost 8 per cent with above-average volume. This rally helped the stock penetrate its 21- and 50-day moving averages conclusively. Daily and weekly relative strength indices are heading towards the bullish zone. Besides, the daily moving average convergence and divergence indicator is signalling a buy. Our short-term outlook is bullish on the stock. We anticipate the stock to continue its up-move until it hits our price target of Rs 405. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 348.
Tata Steel and Suzlon Energy aim to raise up to US$925mn by selling shares to international investors. (ET)
SC has referred the gas dispute between RIL and RNRL to special a special Bench. (BS)
Fiat India Automobiles, a JV between Tata Motors and Fiat, is close to finalizing a loan of US$510mn for its capex and working capital programs. (ET)
L&T plans to invest Rs15bn this fiscal in its projects relating to power, including equipment manufacturing, shipyard and port development. (BL)
NTPC was forced to shut down its 1,000MW Sipat thermal station briefly in May due to coal shortages and reported loss of generation at three other key stations - Kahalgaon, Talcher and Korba - during April-June. (BL)
LIC has exited Pfizer Ltd, selling 14.4% stake in the multinational drug-maker for around Rs3.6bn. (BL)
Bharti Airtel plans to invest around Rs750mn for setting up Airtel Service Centres (ASCs) in villages. (BS)
The Supreme Court has turned down RNRL’s plea to reject the government’s petition seeking to become an independent party in the KG basin gas dispute. (ET)
Alstom Projects has won ~Rs3.7bn contract from Bhel to supply boilers for the power plant at Krishnapatnam in Andhra Pradesh. (FE)
ONGC Videsh Ltd and its consortium partners have declined Iraq’s offer of a service contract for the Zubair oil field. (BL)
Gujarat NRE Coke plans to set up two greenfield plants of 1mtpa in Gujarat and Andhra Pradesh. (BS)
Renuka Sugars may pick up stake in NCDEX. (BL)
Punj Lloyd plans to raise US$125-150mn by placing fresh equity with institutional buyers to retire part of its high-cost debt and infuse liquidity. (ET)
The Union ministry of environment and forests (MoEF) has cleared four environment oriented projects of NALCO under Clean Development Mechanism (CDM). (BS)
Nagarjuna Construction Company Ltd has secured three orders totaling Rs7.8bn. (BL)
Cadila loses trademark case against Wallace Pharma. (BL)
Hong Kong based Li & Fung Group acquires over 26% stake in Future Group’s logistics arm Future Logistics Solutions for ~US$30mn. (ET)
Ranbaxy has received the final approval of the Canadian drug regulator Therapeutic Products Directorate to market and manufacture ‘Ran-Amlodipine tablets. (FE)
Adani Power sells 36mn shares to a founder group firm and to private equity firm 3i ahead of its July 28 IPO. (BS)
Nucleus Software plans to expand its footprint in Latin America and Central Asia. (FE)
Coca-Cola India and Hindustan Unilever are set to link compensation of their media buying and creative agencies to the performance of brands. (ET)
ONGC has hired Citigroup to advise it on a bid for Kosmos Energy’s stake in an oil field in Ghana for ~US$3-5bn. (ET)
HDFC Bank has cut its prime lending rate (PLR) by 25 bps to 15.75% from 16.0%.(BS)
Indiabulls Financial Services has mobilized US$200mn through a QIP issue. (ET)
Cairn India’s crude production from its Barmer field in Rajashtan is expected to narrow energy gap. (FE)
Essar Oil has tied up with Weizmann Forex to offer currency exchange facilities to non-resident Indians at its fuel stations. (BL)
ICL Financial Services Ltd, a subsidiary of India Cements Ltd, has acquired a 53% stake in Indo Zinc Ltd for about Rs530mn. (BL)
Kingfisher Airlines owes over Rs9.5bn to state-run oil companies as unpaid jet fuel bills. (ET)
Dish TV has announced an increase of Rs100 across all its tariff plans. (FE)
Kirloskar Pneumatic has entered the windmill gearbox manufacturing business with its foray into the gearboxes for 1MW capacity windmills. (FE)
Goa Carbon board approves formation of a wholly-owned subsidiary outside India to invest in a JV company in China to manufacture 1MTPA of calcined petroleum coke utilizing the vertical shaft kiln technology. (FE)
UTV Software to buy the remaining stake in UMP Plc for about US$195mn to integrate its movie business. (BS)
Ennore Port Ltd to raise funds by offering a small equity stake (10%) to institutions such as LIC and GIC. (BL)The finance ministry is likely to raise the investment cap in government securities by foreign portfolio investors, or FIIs. (ET)
The government plans to permit merchant power projects that allow merchant sales of up to 40% of saleable energy in case of hydel power and 15% in thermal power to get zero import duty and deemed export benefit on equipment purchase. (ET)
The Union Budget proposal to levy a 10% service tax on railway freight may see a partial roll-back. (ET)
The government plans to extend the DEPB scheme till the end of FY10. (ET)
The government has imposed anti-dumping duty of up to US$11.38 per kg on imports of viscose rayon filament yarn. (ET)
The Income-Tax Appellate Tribunal has held that anticipated losses on incomplete projects are allowable as a deduction, subject to that being calculated in accordance with Accounting Standard 7 (AS7). (ET)
Airports Authority of India proposes to charge Rs300 as development fee on local non-metro routes and Rs1,000 for international flights. (ET)
The World Bank has agreed to lend US$100mn for poverty alleviation efforts in Madhya Pradesh and another US$197mn to increase agricultural productivity of degraded land in Uttar Pradesh. (ET)
It's only during an eclipse that the Man in the Moon has a place in the sun.
The bulls have had their place in the sun even as monsoon, moon, sun and stars seem to be hogging the headlines. Monday was the 40th anniversary of the first ever manned moon mission. Meanwhile, the longest full solar eclipse this century will pass over India and China on Wednesday.
Coming to the markets, the fortunes continue to fluctuate depending on whether one is a bull or a bear. Right now, the bulls seem to be holding an upper hand. And, the Finance Minister could be having a quiet smirk now that the Sensex has erased all the post-budget losses. What’s more, the key indices are within striking distance of the highs hit in June.
Milestones may be crossed and new ones will be made. But, valuations have zoomed from the lows struck last year. Sooner or later this factor will put a lid on any unbridled rally, as fundamentals are yet to return to pre-recession levels. The market will remain volatile till news turns ‘good’ on a sustained basis. Today, we expect a cautious start and some profit booking.
Global equity markets appear to be clawing their way back after a brief period of consolidation. The catalyst(s) are not new - a few positive economic reports and better corporate earnings. The big question is whether this momentum can be carried forward? If yes, then for how long? We are bound to meet roadblocks along the way. The moot point is that the market is delicately poised, and is only reacting to daily dose of news (both local and global).
For every good news there is a bad news. It depends on what you choose to focus on. This makes the market vulnerable to wild fluctuations. But, the swings continue to baffle and bamboozle even the smartest of market pundits and traders. The best thing to do would be to act judiciously whether you are buying or selling, as the market could remain choppy for quite a while.
Results Today: BOC India, Chambal Fertilizers, Coromandel Fertilizers, Dalmia Cement, Dr. Reddy's, ING Vysya Bank, Ion Exchange, JB Chemicals, LIC Housing Finance, OBC, Radico Khaitan, Renuka Sugar, TN Newsprint, Thermax, Ultratech Cement, Wipro and Yes Bank.
FIIs were net buyers of Rs5.63bn in the cash segment on Monday on a provisional basis while the local funds were a bit more cautious, putting in Rs1.52bn, according to figures published on the NSE web site. In the F&O segment, the foreign funds were net buyers at Rs2.34bn.
On Friday, the foreign funds were net buyers in the cash segment at Rs2.6bn, as per SEBI data. With this, their net investment in Indian stocks this year has crossed Rs300bn or ($6bn). Mutual Funds were net buyers of Rs7.42bn in the cash segment on Friday.
US stocks rallied on Monday, with the Dow adding more than 100 points and the S&P closing at an 8-month high, as investors welcomed encouraging second-quarter financial reports. Wall Street also got a boost from reports that small business lender CIT has secured private-sector financing to keep it out of bankruptcy.
The Dow Jones Industrial Average jumped 104 points, or 1.2%. Monday's rally pushed the blue-chip index into positive territory (in 2009) for the first time in more than 5 weeks.
The broader S&P 500 index added 11 points, or 1.1%, to close at its highest level in more than 8 months. The tech-heavy Nasdaq added 23 points, or about 1.2%, to stretch to its highest level since early October, or about 9 months.
The major indexes are coming off a positive week. Last week was the Dow and S&P 500's first up week -- and the Nasdaq's second -- in the past five.
The fact that companies haven't come out with the dire earnings that were seen in the first quarter is a positive sign. Investors are looking at incremental changes in the earnings reports to give them a clue as to how companies are placed to rebound when the economy starts to pick up.
A report from Goldman Sachs increased its 2009 target for the S&P 500 index to 1060 from 940, a 13% jump in the index. The report also cautioned that the U.S. economic backdrop represents the most significant risk to our equity market forecast, and that the risk of a double-dip recession is significant.
Stocks hit their recent lows on March 9 of this year and have been struggling higher.
This week, 145 of the S&P 500 companies, or 23% of the broad index, are due to report quarterly results. Among them, 12 Dow components, including American Express, Microsoft, Coca-Cola and Merck, are set to release results.
Texas Instruments reported earnings after the closing bell on Monday. The chipmaker posted sales that fell 27% from the year ago period and net income that plunged 56% from the same quarter a year ago. Compared to the first quarter of 2009, however, sales and profits jumped.
The board of CIT has approved a deal for a $3 billion loan from bondholders in order to stave off a bankruptcy filing, according to published reports. The deal is expected to be announced later on Monday. The small and midsize business lender has been scrambling to raise money after the government said it would not provide it additional bailout funds. CIT received $2.3 billion in aid from the government late last year. CIT shares had lost more than 80% since the beginning of June. On Monday, shares surged 79% to $1.25 per share.
The index of leading economic indicators (LEI) rose 0.7% in June, according a report from the Conference Board. Economists were expecting the index to have risen by 0.5% in June, according to a consensus estimate. LEI rose 1.2% in the previous month.
Treasury prices bounced, with the yield on the benchmark 10-year note falling to 3.61% from 3.64% on Friday.
In currency trading, the dollar lost ground against the euro and British pound. Meanwhile, the greenback edged higher against the Japanese yen, which is considered another safe-haven currency.
US light crude oil for August delivery settled up 42 cents to $63.98 a barrel on the New York Mercantile Exchange.
COMEX gold for August delivery rose $11.30 to $948.80 an ounce.
European shares gained ground for the sixth session in a row on Monday. The pan-European Dow Jones Stoxx 600 index rose 1.2% to 213.24, according to preliminary closing prices.
The UK FTSE index climbed 1.3% to 4,443.62, the French CAC-40 index advanced 1.6% to 3,270.94 and the German DAX index rose 1% to 5,030.15.
Bulls did IT again as the Indian markets started off the week with a bang. The NSE Nifty index ended above the 4,500 levels for the first time since June 16, 2009 led by the technology stocks; even the BSE Sensex shut shop above the 15,000 levels with the index adding up over 900 points in last two trading session.
IT stocks were the flavor of the day as the BSE IT index ended with biggest daily percentage gains since May 18, 2009. The index surged over 7%. TCS led from the front after posting impressive Q1 results. Stocks like Infosys, Wipro and Tech Mahindra were among the other major gainers.
The Realty and Telecom stocks also ended with smart gains. Even the Mid-Cap and the Small-Cap stocks participated in the rally.
The Sensex surged by 446 points or 3% to end at 15,191 after touching a high of 15,209 and a low of 14,854. The index had opened at 14,854 against the previous close of 14,745.
The NSE Nifty shot up by 127 points or 2.9% to shut shop at 4,502.
Asian markets ended in the positive terrain. The Nikkei in Japan was closed, Australia's S&P/ASX ended higher by 1.2% at 4,050. The Hang Seng index rose by 3.7% to 19,502.
In Europe, stocks were trading in the green. The FTSE in the UK was up 1.4% at 4,450. The DAX rose 1.5% at 5,053 and the CAC 40 gained 1.6% at 3,270.
Coming back to India, among the BSE sectoral indices, the BSE IT index was the top gainer, surging by an impressive 7.2%, followed by the BSE Realty index that was up 5.2%. The BSE Teck index rose 4.6% and BSE Bankex index was up 4.3%.
The BSE Mid-Cap index advanced 2.5% and the BSE Small-Cap index rose 2.5%.
Within the Sensex, the major gainers were TCS, Wipro, ICICI Bank, DLF, Infosys, Hindalco, Reliance Industries and JP Associates. Among the major losers were, ITC, RCom, HDFC, Reliance Infra and HUL.
Outside the frontline indices, the top gainers included Gujarat NRE, IFCI, Aban Offshore, BEL, Koutans Retail and Marico.
Among the big losers in the broader market were Petronet LNG, NMDC, Crompton Greaves, Fortis Health, Sun TV and Exide Ind.
Shares of TCS shot up by over 15% to end at Rs500 on Monday registering its biggest single day gains for the first time since the stock was listed on the exchanges in August 2004. During the intra-day trades market capitalization of TCS hit the 1 lakh crore mark.
The stock rallied after the company posted spectacular Q1 earnings beating market estimates with major brokerage firms upgrading the stock rating.
The stock had opened at Rs449 and made an intra-day high of Rs514 and a low of Rs449. Total traded volumes stood at 3.9mn shares on the BSE.
Shares of Kingfisher Airlines surged by over 8% to Rs50.9 after reports stated tha the company plans to consider selling shares via rights issue or follow-on public offer to raise funds, stated reports. The stock opened at Rs47 and made an intra-day high of Rs51.6 and a low of Rs45.7. Total traded volumes stood at 3.2mn shares on BSE.
Shares of Maytas Infra were locked at 5% upper circuit to Rs71.15 after reports stated that the government will consider a strategic sale of Maytas Infra, if the board makes a recommendation. The stock opened at Rs71.15 and made an intra-day high of Rs71.15 and a low of Rs71.15. Total traded volumes stood at 80,000 shares on BSE.
Shares of India Cements surged by over 3.5% to Rs152 after the company’s wholly owned subsidiary, ICL Financial Services Ltd entered into a share purchase agreement with the promoters of Indo Zinc Ltd for purchase of 17,87,700 equity shares of Rs10/- each fully paid up in IZL constituting 39.84% of its paid up equity share capital.
Shares of Petronet LNG slipped sharply after the company’s profit in the first quarter fell 2.8%, missing market estimates. Net income in the three months ended June 30 decreased to Rs1.03bn from Rs1.06bn a year earlier. Net sales in the quarter rose to Rs26.04bn from Rs16.46bn.
The stock fell over 4.5% to end at Rs68.9 after hitting an intra-day high of Rs77 and a low of Rs66. Total traded volumes stood at 2.3mn shares on BSE.
Shares of Financial Technologies surged by over 2.5% to Rs1387. IFCI acquired 5% stake in the present equity share capital of MCX Stock Exchange Ltd from Financial Technologies at Rs35/- per equity share.
Shares of IFCI surged by over 10% to end at Rs50.15. The stock opened at Rs46 and made an intra-day high of Rs50.55 and a low of Rs45.75. Total traded volumes stood at 10.8mn shares on BSE
Weak dollar and higher crude spurt prices
Precious metal prices ended higher on Monday, 20 July, 2009. Weak dollar and higher crude prices increased the appeal of precious metals 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 Monday, gold for August delivery ended at $948.8, higher by $11.3 (1.2%) an ounce on the New York Mercantile Exchange. Earlier it reached a high of $955.4. Last week, gold ended higher by 2.7%. Year to date, gold prices are higher by 6.9%.
For the month of June, 2009, gold ended down by 5.4%. Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. For the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (10%) since then.
On Monday, Comex silver futures for September delivery rose 22.2 cents (1.7%) at $13.625 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 20.3% this year. For 2008, silver had lost 24%.
In the currency market on Monday, the U.S. Dollar Index, a six-currency gauge of the greenback's value, fell to a six-week low on speculation that European and U.S. economic reports this week will show the global recession is easing. The dollar index slipped by 1.1% today.
Crude prices rose by almost 2% to $64.9/barrel today.
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 87 (0.6%) at Rs 14,850 per 10 grams. Prices rose to a high of Rs 14,914 per 10 grams and fell to a low of Rs 14,772 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 222 (1%) higher at Rs 22,273/Kg. Prices opened at Rs 22,085/kg and rose to a high of Rs 22,395/Kg during the day's trading.
Prices rise as dollar weakens
Crude price ended higher on Monday, 20 July, 2009. Prices registered gains today due to the weak dollar.
On Monday, crude-oil futures for light sweet crude for August delivery closed at $63.98/barrel (higher by $0.42 or 0.6%). Earlier during the day, it hit a high of $64.9. Last week, crude ended higher by 6.1%.
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 56% since then. In July, 2009, it has dropped by 8% till date. Year to date, in 2009, crude prices are higher by 43.1%.
In the currency market on Monday, the U.S. dollar index, a six-currency gauge of the greenback's value, fell to a six-week low on speculation that European and U.S. economic reports this week will show the global recession is easing. The dollar index slipped by 1.1% today.
Last week, in its latest monthly report, OPEC reported that global oil demand will fall by 1.6 million barrels a day this year from a year ago. It also said the cartel increased its production in June for a third straight month. As per OPEC, oil demand will fall this year as the global economy is expected to contract 1.4%. The cartel, which accounts for about one third of the world's oil production, also said its oil production in June rose to 28.441 million barrels a day.
Also at the Nymex on Monday, August reformulated gasoline gained 2 cents to $1.79 a gallon and August heating oil rose 5 cents to $1.69 a gallon.
August natural gas futures gained 2 cents to $3.69 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 August delivery closed unchanged at Rs 3,149/barrel. Natural gas for August delivery closed at Rs 185.8/mmbtu, lower by Rs 2.9/mmbtu (1.53%).
Nifty July 2009 futures were at 4505.60, at a premium of 3.35 points as compared to the spot closing of 4502.25. Turnover in NSE's futures & options (F&O) segment was Rs 70,008.60 crore, much lower than Rs 74,254.90 crore on Friday, 17 July 2009.
Unitech July 2009 futures were at premium at 83.05 compared to the spot closing of 82.25.
Suzlon Energy July 2009 futures were at discount at 93.30 compared to the spot closing of 94.20.
Tata Consultancy Services July 2009 futures were near spot price at 499.80 compared to the spot closing of 500.55.
In the cash market, the S&P CNX Nifty gained 127.30 points or 2.91% at 4502.25.