Daily Market Review - July 23 2009
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Thursday, July 23, 2009
Sensex, Nifty gain over 2% at close
Indian equities ended on buoyant note helped by positive results of many large cap companies like Maruti Suzuki, ITC and ACC along with news six core industries registered a growth of 6.5% in June this year against 5.1% in the same month last year.
The rise in core industries was on account of improved production in cement, coal, crude oil and electricity. During April-June this fiscal, the core industries grew by 4.8% compared to 3.5% in the corresponding period the previous year.
On the global front, Asian stocks rose led by automakers and technology companies, as a weaker yen boosted the prospects for Japanese export earnings and US housing prices unexpectedly gained.
Japanese benchmark index Nikkei rose 69.78 points, or 0.72%, to end at 9,792.94 while Hong Kong`s Hang Seng index gained 569.53 points, or 2.96%, to finish at 19,817.70.
European stocks gained and US index futures advanced, pushing the MSCI World Index to the longest stretch of gains since 2003, as companies from Roche Holding to ABB reported earnings that beat estimates.
UK`s benchmark index FTSE 100 fell 9.11 points, or 0.20%, to trade at 4,484.62 .
French benchmark index CAC 40 declined 22.16 points, or 0.67%, to trade at 3,282.70 .
Germany`s benchmark index DAX gained 9.38 points, or 0.18% to trade at 5,111.30. (4:29 p.m).
Futures on the S&P 500 fell by 2.20 points to 951.60 at 4:30 p.m. Dow Jones Industrial Average futures dropped by 19 points to 8,852. Nasdaq-100 Index futures decreased 3.75 points to 1,560.25.
Inflation:
India`s benchmark wholesale price index (WPI), annual inflation stood at -1.17% for the week ended July 11, 2009 as compared -1.21% a week ago
The Sensex ended the day with a gain of 387.92 points, or 2.61% at 15,231.04 after touching a high of 15,264.84 and a low of 14,997.75. The broad-based NSE Nifty gained 124.85 points, or 2.84% at 4,523.75 after hitting a high of 4,532.40 and a low of 4,405.95.
Major gainers in the sectoral indices were BSE Realty (5.08%), Consumer Durables (4.47%), Metal (4.32%), FMCG (3.95%) and Auto (3.87%). There were no major losers in the 30-share index.
Biggest gainers in the 30-share index were Reliance Energy (6.91%), DLF (6.77%), Maruti Suzuki India (6.44%), Hindalco Industries (6.08%), ACC (5.80%), and ITC (5.55%).
On the other hand, Bharti Airtel (1.09%), and Oil & Natural Gas Corporation were the only major losers in the Sensex.
Overall market breadth was positive. Out of the total 2,718 shares traded at BSE, 1,803 advanced, 835 declined while 80 remained unchanged.
Post Session Commentary - July 23 2009
Domestic market bounced back from previous session’s losses to close near day''s high backed by firm cues from Asian markets. In addition, firm US index futures also added to the positive sentiments. Key benchmark indices witnessed upswing despite negative cues from European stocks. Market gained ground as strong buying emerged across the board during final trading hours led by strong Q1 June 2009 results of Indian companies. Meanwhile, Inflation for week ended July 11 came in at -1.17% vs -1.21% for the previous week ended July 4, 2009, marking a sixth straight week fall. BSE Sensex ended above 15,200 level and NSE Nifty closed above 4,500 mark.
Market opened on pleasant note in line with other Asian counterparts. The Asian markets opened with remarkable gains whereas on Wednesday, the US markets closed mixed amid higher expectations of quarterly earnings by traders. However the Nasdaq logged its eleventh straight advance due to continued strength among large-cap tech stocks. Further, Indian benchmark indices continued to trade on upbeat note backed by of fresh capital inflows by foreign funds. Announcement that Foreign Institutional Investors (FIIs) and the Non-Resident Indians (NRIs) have been allowed to invest in Indian Depository Receipts (IDR), according to the operational guidelines issued by the Reserve Bank of India on Wednesday, 22 July 2009, also contributed to the upward journey. However, stocks cooled down a little after inflation stayed in negative for the sixth consecutive week at -1.17% for the week ended July 11, 2009. Though, market ignored the inflation data further and continued to extend gains. Huge buying over the ground led sharp rally during final trading hours and market witnessed strong close. From the sectoral front, investors on-loaded position across the sectors. Among those, Realty, Consumer Durable, Metal, FMCG, Auto, Pharma, Power and Oil & Gas stocks witnessed most of the buying from these baskets. BSE Mid Cap and BSE Small Cap indices also followed the same trend.
Among the Sensex pack 28 stocks ended in green territory and 2 in red. The market breadth indicating the overall health of the market remained positive as 1803 stocks closed in green while 835 stocks closed in red and 80 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 387.92 points or (2.61%) at 15,231.04 and NSE Nifty ended up by 124.85 points or (2.84%) at 4,523.75. BSE Mid Caps and Small Caps closed with gains 118.63 and 125.49 points at 5,293.37 and 5,942.85 respectively. The BSE Sensex touched intraday high of 15,264.84 and intraday low of 14,997.75.
Gainers from the BSE Sensex pack are Reliance Infra (6.91%), DLF Ltd (6.77%), Maruti Suzuki (6.44%), Hindalco (6.08%), ACC Ltd (5.80%), ITC Ltd (5.55%), Sterlite Industries (5.22%), JP Associates (4.93%), RCom (4.91%), Tata Motors (4.88%), M&M Ltd (4.80%), Tata Steel (4.13%), Grasim Industries (3.86%), Reliance (3.08%), Herohonda Motors (2.98%), L&T Ltd (2.86%) and HUL (2.64%).
Loser from the BSE Sensex pack is Bharti Airtel (1.09%).
Inflation for week ended July 11 came in at -1.17% vs -1.21% for the previous week ended July 4, 2009, marking a sixth straight week fall. The inflation during the corresponding week July 12, 2008 stood at 12.13%. The Wholesale Price Index for ''All Commodities'' for the week ended 11th July 2009 rose by 0.1% to 236.7 from 236.4 for the previous week.
On the global markets front the Asian markets that opened before the Indian market, ended higher. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times and Seoul Composite ended up by 31.88, 569.53, 69.78, 34.07 and 2.45 points at 3,328.49, 19,817.70, 9,792.94, 2,484.90 and 1,496.49 respectively.
European markets, which opened after the Indian market, are trading in red. In Frankfurt the DAX index is trading down by 10.71points at 5,110.85 and in London FTSE 100 is trading lower by 11.25 points at 4,482.48.
The BSE Realty index surged (5.08%) or 175.66 points at 3,635.69. DLF Ltd (6.77%), Housing Dev (5.19%), Unitech Ltd (5.16%), Orbit Co (4.97%) and Penland Ltd (4.58%) closed in positive territory.
The BSE Consumer Durable closed higher by (4.47%) or 131.27 points at 3,066.21. Blue Star L (7.65%), Titan Ind (4.37%), Videocon Ind (2.51%), Rajesh Export (2.16%) and Gitanjali GE (0.92%) ended in green territory.
The BSE Metal stocks gained (4.32%) or 490.07 points to close at 11,835.68 as LMEX, a gauge of six metals traded on the London Metal Exchange rose 1.72% overnight. Major gainers are Ispat Industries (7.02%), Hindalco (6.08%), Sterlite Industries (5.22%), Hindustan Zinc (5.08%) and Jindal Steel (4.97%).
The BSE FMCG index ended up by (3.95%) or 96.71points at 2,547.12. Gainers are United Brew (11.36%), Ruchi Soya (6.28%), ITC Ltd (5.55%), Britania Indus (4.39%) and HUL (2.64%).
The BSE Auto index advanced by (3.87%) or 196.33 points at 5,274.23. Scrips that gained are Maruti Suzuki (6.44%), Amtek Auto (5.98%), Tata Motors (4.88%), M&M Ltd (4.80%) and MRF Ltd (3.97%).
The BSE Pharma index increased by (2.85%) or 206.66 points to close at 3,845.72. Main gainers are Glenmark Pharma (6.68%), Opto Circuit (5.43%), Aurobindo Pharma (5.33%), Dr Reddys Lab (4.78%) and Cipla Ltd (4.75%).
KEC International Ltd zoomed 8.71%. The company has won four orders totaling to Rs, 471 crores in the domestic market. The two orders are from North East Transmission Co. Ltd. (a Joint Venture of QNGC, IL&F5 and Govt of Tripura).
Ramsarup Industries Ltd gained 4.98%. The company bagged orders worth Rs. 62 crores from the Rajasthan Urban Sector Development Investment Program (RUlDP-phase-II) for laying of sewerage lines at Jhunjhunu and Nagaur districts in northern Rajasthan.
Mahindra & Mahindra (M&M) Ltd increased by 4.80%. The company is planning to drive on rural markets in order to push its recent launch pick up- Mahindra Bolero Maxi Truck.
The Andhra Bank ended up by 0.85%. The bank planned to include 500 more branches in the next four years in order to increase its total branch network to 2000, a top bank official said.
Maruti Suzuki India Ltd advanced by 6.44%. The company has posted a net profit after tax of Rs 5835.40 million for the quarter ended June 30, 2009 as compared to Rs 4658.50 million for the quarter ended June 30, 2008. Total Income has increased from Rs 50823.60 million for the quarter ended June 30, 2008 to Rs 67095.30 million for the quarter ended June 30, 2009.
ACC Ltd gained 5.80%. The company has posted a net profit of Rs 4856.193 million for the quarter ended June 30, 2009 where as the same was at Rs 2714.242 million for the quarter ended June 30, 2008. Total Income is Rs 21382.483 million for the quarter ended June 30, 2009 where as the same was at Rs 18541.087 million for the quarter ended June 30, 2008.
BSE Bulk Deals to Watch - July 23 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
23/7/2009 524412 AAREY DRUGS VARSHA BEN NAVINBHAI SONI B 30367 43.41
23/7/2009 524412 AAREY DRUGS KAUSHIK SHAH SHARES & SEC. LTD S 150000 43.45
23/7/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD B 244409 948.08
23/7/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD S 244409 948.27
23/7/2009 531223 ANJANI SYNTH AYODHYAPATI INVESTMENT PVT LTD B 90744 48.30
23/7/2009 531223 ANJANI SYNTH AMIT SHANTILAL MEHTA B 56000 48.21
23/7/2009 519532 ASIAN TEA EX KAPISH CACJGING PVT. LTD S 75757 26.59
23/7/2009 505010 AUTOMAT AXLE M3 INVESTMENT PRIVATE LIMITED B 471600 135.00
23/7/2009 505010 AUTOMAT AXLE RELIANCE LIFE INSURANCE CO.LTD. S 470466 135.00
23/7/2009 512149 AVANCE TECHN JIGNESH CHANDRAKANT SHAH S 25000 51.05
23/7/2009 532995 AVON CORP S V ENTERPRISES B 335512 9.60
23/7/2009 532995 AVON CORP S V ENTERPRISES S 361512 9.57
23/7/2009 523415 COVEN COILOM MRS SANGEETA S 77840 9.89
23/7/2009 532858 DECOLIGHT CE KIRAN SUTTAMCHAND B 200000 10.15
23/7/2009 532858 DECOLIGHT CE SOHAN RAJ UTTAMCHAND B 200000 10.15
23/7/2009 532858 DECOLIGHT CE MITTAL SECURITIES FINANCE LIMITED S 400000 10.15
23/7/2009 517973 DMC INTER SHIVCHARAN DASS MITTAL B 45000 6.75
23/7/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD S 26425 6.83
23/7/2009 590080 EASTERN GAS SETU SECURITIES PVT LTD B 45002 57.75
23/7/2009 590080 EASTERN GAS HITESH SHASHIKANT JHAVERI B 48018 57.66
23/7/2009 590080 EASTERN GAS SETU SECURITIES PVT LTD S 45000 57.75
23/7/2009 590080 EASTERN GAS HITESH SHASHIKANT JHAVERI S 43698 57.75
23/7/2009 532139 GTECH INFOTR CHANDRAKANT B SHAH S 1294000 0.78
23/7/2009 509597 HARDCAS WAUD RAHUL GUPTA B 3500 264.00
23/7/2009 509597 HARDCAS WAUD PARSHANT SINGH B 3500 274.00
23/7/2009 509597 HARDCAS WAUD RAHUL GUPTA S 3500 274.00
23/7/2009 509597 HARDCAS WAUD PARSHANT SINGH S 3500 264.00
23/7/2009 531387 HASTI FINANC DHEERAJ K S 24000 16.81
23/7/2009 532467 HAZ MUL PRO PARAM CAPITAL B 297840 4.80
23/7/2009 532467 HAZ MUL PRO Gyanchand Jawarilal Jain S 300000 4.80
23/7/2009 504336 INDTRADECO L PLEASENT TEXTILES LIMITED S 875000 0.71
23/7/2009 526512 INTERLINK PE KENNETH GERARD PEREIRA B 224000 20.00
23/7/2009 526512 INTERLINK PE VIJAY MISRA & SONS S 224000 20.00
23/7/2009 516078 JUMBO BAG LT SANJEEV BURMAN JHAVERI B 37201 65.99
23/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 142817 67.08
23/7/2009 516078 JUMBO BAG LT SHVETAL K TRIVEDI B 80000 66.93
23/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 144210 66.84
23/7/2009 531784 KADAMB CONST DINESH B SOMANI S 20000 43.20
23/7/2009 530255 KAY POW PAP SUNDER DASS AGARWAL S 55000 5.83
23/7/2009 507759 LIME CHEM DUKE ADVISORS (P) LTD B 235000 4.27
23/7/2009 507759 LIME CHEM DUKE SPECIAL OPPORTUNITIES FUND LLC S 242550 4.27
23/7/2009 501209 MAST MEDI SY* PREMLATA RAMESH SARAOGI B 50000 43.00
23/7/2009 501209 MAST MEDI SY* JUGAL KISHORE MMAHESHWARI S 41094 43.02
23/7/2009 511551 NETWO ST BRO GANESH KUMAR SINGHANIA B 100000 42.64
23/7/2009 511551 NETWO ST BRO SALASAR STOCK BROKING LIMITED S 100000 42.63
23/7/2009 531802 PRERNA INFR MANI CREDIT CAPITAL PVT. LTD B 95500 16.60
23/7/2009 531802 PRERNA INFR FAROKH NARIMAN PAVRI S 95500 16.60
23/7/2009 531611 PRRANET INDU CHANDRAKANT B SHAH B 575000 9.80
23/7/2009 531611 PRRANET INDU ESHA SECURITIES LIMITED S 485000 9.80
23/7/2009 533083 RISHABHDEV SHELENDRA N BARADIA S 90000 19.11
23/7/2009 532638 SHOPPER STOP RELIALNCE CAPITAL MUTUAL FUND B 538000 162.01
23/7/2009 530611 STURDY INDS SIMMI JAIN B 50000 29.05
23/7/2009 530611 STURDY INDS GEETA JAIN B 50000 29.05
23/7/2009 530611 STURDY INDS KINOFOLK INDUSTRIES LTD. B 66009 28.95
23/7/2009 530611 STURDY INDS SIMMI JAIN S 50000 28.95
23/7/2009 530611 STURDY INDS KINOFOLK INDUSTRIES LTD. S 66009 29.05
23/7/2009 530109 VANTA COR SE J V STOCK BROKING PRIVATE LIMITED B 29822 13.50
23/7/2009 530109 VANTA COR SE J V STOCK BROKING PRIVATE LIMITED S 29822 13.74
23/7/2009 530109 VANTA COR SE BHUPENDRA SHANTILAL SHAH S 19595 12.72
23/7/2009 530109 VANTA COR SE PRADIP BHIMSHI SHAH S 18000 13.75
23/7/2009 503657 VEER ENERGY KIRIT KUMAR MOHANLAL PATEL B 18545 287.30
23/7/2009 531874 VENUS VENT VIPUL HIRALAL SHAH B 27705 29.89
23/7/2009 531874 VENUS VENT KANCHAN VIJAYKUMAR THAKKAR B 31410 29.91
NSE Bulk Deals to Watch - July 23 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
23-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,238180,946.78,-
23-JUL-2009,ABAN,Aban Offshore Ltd.,CREDIT SUISSE (SINGAPORE) LIMITED A/C CREDIT SUISSE (SINGAP,BUY,194123,931.80,-
23-JUL-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,3735437,48.78,-
23-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,9355651,21.55,-
23-JUL-2009,MAYTASINFR,Maytas Infra Limited,CLSA (MAURITIUS) LIMITED,BUY,2222500,76.49,-
23-JUL-2009,SHOPERSTOP,Shopper?s Stop Limited,RELIANCE CAPITAL MUTUAL FUND,BUY,462000,162.03,-
23-JUL-2009,UTTAMSTL,Uttam Galva Steels Limite,KREDENCE MULTI TRADING LTD,BUY,591563,61.36,-
23-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,238180,947.23,-
23-JUL-2009,HYDRBADIND,Hyderabad Industries Ltd,NATIONAL INSURANCE CO LTD,SELL,37759,274.13,-
23-JUL-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,3735437,48.82,-
23-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,8745601,21.57,-
23-JUL-2009,MAYTASINFR,Maytas Infra Limited,IFCI LTD.,SELL,2400000,76.55,-
Renewed wave of risk appetite lifts Asia
Strong gains noted in the major indices after cautious outing yesterday
Asian markets ended on a broadly buoyant note, with a renewed wave of risk appetite bringing in a spate of massive gains for the major indices. The markets were seemingly back on track after a cautious session as evidence that the export led economies are on the road to recovery spurred the sentiments. China, India, Hong Kong and Japan ended with smart upside nudges on expectation that worst is over for the US economy and the worldwide recession may be getting over soon.
Yesterday, the US Stocks
finished on a mixed note after seeing choppy trading, with reaction to the latest earnings results limited by low volume. Meanwhile, Federal Reserve Chairman Ben Bernanke redelivered his address regarding monetary policy before the Senate Banking Committee while also fielding questions regarding the current and near-term economic outlook. In his prepared remarks, Bernanke reiterated that the U.S. economy is showing signs of stabilization, although he noted that the economy is still in a fragile state, with unemployment high and consumer spending shaky.
However, Bernanke conceded that unemployment is "the most pressing issue" facing the Fed, but he noted that there are steps that Congress could take to ease the situation, similar to the already-passed extension of unemployment benefits.
With US markets not providing much of a direction, the response from Asian bourses was surprisingly upbeat. Japan's exports fell in June at the slowest pace this year and orders for Taiwanese shipments declined the least in eight months, adding to evidence that Asia's economies are on the road to recovery.
Japanese overseas sales dropped 35.7 percent from a year earlier, easing from a 40.9 percent decline in May, the Finance Ministry said in Tokyo. Orders for Taiwan exports, an indication of shipments in one to three months, fell 10.91 percent from a year earlier, easing from a 20.14 percent retreat in the previous month, the Ministry of Economic Affairs said in Taipei.
The Nikkei 225 Stock Average rose 0.70% at the close in Tokyo, taking its gains to 39 percent since reaching a 26- year low on March 10. The yen weakened to 94.30 per dollar from 93.59, spurring a renewed wave of risk appetite. In other major gainers, Chinese stocks continued to consolidate at 13-month highs, ending up around 1%. However, the biggest gainers were India and Hong Kong, with the benchmark stock indices in these countries jumping by nearly 3% each.
Looking ahead, the market participants are expecting yet another volatile session on the US exchanges. Traders will react to earnings from Qualcomm, McDonald's, Wyeth and AT&T Thursday morning while also looking to two key economic reports.
The U.S. Labor Department will release its weekly jobless claims report, with economists expecting first time claims for the week ended July 18th. Housing will also be in focus, with the National Association of Realtors scheduled to report figures on existing home sales for June shortly after the opening bell on Wall Street.
Nifty July 2009 futures at premium
Turnover drops
Nifty July 2009 futures were at 4539.95, at a premium of 16.20 points as compared to the spot closing of 4523.75. Turnover in NSE's futures & options (F&O) segment was Rs 74,885.56 crore, much lower than Rs 91,641.08 crore on Wednesday, 22 July 2009.
Tata Steel July 2009 futures were at discount at 414.70 compared to the spot closing of 415.75.
ICICI Bank July 2009 futures were at discount at 774 compared to the spot closing of 775.75.
Sterlite Industries (India) July 2009 futures were at discount at 631 compared to the spot closing of 633.35.
In the cash market, the S&P CNX Nifty surged 124.85 points or 2.84% at 4523.75.
Sensex, Nifty attain highest closing in more than a month
Key benchmark indices rallied, snapping losses in the preceding two trading sessions, on stellar Q1 June 2009 earnings from some Sensex stocks and positive economic data. Maruti Suzuki, ITC and ACC unveiled forecast beating earnings today, 23 July 2009. The BSE 30-share Sensex jumped 387.92 points or 2.61% to 15,231.04. The barometer index today regained the psychological 15,000 mark and the 50 unit S&P CNX Nifty surged past 4,500 level.
Shares of Sun Pharma gained 1.62% in highly volatile trade after plunging as much as 7.70% in early trade. Maruti Suzuki, ITC and ACC logged smart gains on strong Q1 June 2009. However Bharti Airtel faltered as average revenue per user dipped.
Today's market rally was accompanied by higher volume. BSE's cash market turnover amounted to Rs 8030 crore as compared with Rs 6672 crore on Wednesday, 22 July 2009. Apart from upbeat Q1 results, positive infrastructure data and strong Asian stocks also bolstered bulls. All the sectoral indices on BSE logged gains.
After a firm opening triggered by higher Asian stocks, the market soon came off the higher level. A bout of volatility was witnessed later. The Sensex climbed to a fresh intraday high in mid-afternoon trade.
The market recovered today after last two days' slide. The BSE Sensex had lost 347.89 points or 2.29% in the previous two trading sessions.
In a move that my boost sentiment, foreign institutional investors (FIIs) and the non-resident Indians (NRIs) have been allowed to invest in Indian Depository Receipts (IDR), according to the operational guidelines issued by the Reserve Bank of India on Wednesday, 22 July 2009. FIIs, including the Securities & Exchange Board of India (Sebi) approved sub-accounts of the FIIs registered with Sebi and NRIs may invest, purchase, hold and transfer IDRs of eligible companies resident outside India and issued in the Indian capital market, subject to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000.
The six infrastructure industries -- crude oil, refining, coal, electricity, cement and steel -- together grew at an annual rate of 6.5% in June 2009, faster than the previous month's rise of 2.8%, data showed on Thursday, 23 July 2009. The data indicated improving economic activity. The infrastructure sector accounts for 26.7% of India's industrial output.
Inflation measured by the wholesale price index (WPI) declined 1.17% in the 12 months to 11 July 2009, as compared with previous week's annual decline of 1.21%, government data showed today, 23 July 2009.
Meanwhile, annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. The cumulative seasonal rainfall for the country as a whole during this year's monsoon has so far been 24% below the Long Period Average (LPA), the India Meteorological Department said on its website in a press release dated 17 July 2009. Out of 36 meteorological sub-divisions, rainfall was excess/normal in 13 and deficient/scanty in 23 meteorological sub-divisions
More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 354 companies rose 35.10% Rs 22352 crore on 9.2% growth in sales to Rs 159099 crore in Q1 June 2009 over Q1 June 2008.
European markets were trading subdued today, 23 July 2009. Key benchmark indices in UK, France and DAX were down by between 0.09% and 0.45%
Asian stocks climbed to a 10-month high today, 23 July 2009 led by energy shares. Key benchmark indices in Hong Kong, Singapore, South Korea and Japan were up by between 0.16% and 2.96%. However Taiwan's Taiwan Weighted index slipped 0.06%
China's Shanghai Composite rose 0.97% after the Chinese Foreign Minister Yang Jiechi today, 23 July 2009 expressed confidence that his country's economy could reach an 8% growth target this year buoyed by stimulus package.
Yang Jiechi added that giving developing nations more weight in global financial bodies would be a key element of the G20 summit in Pittsburgh in September 2009.
US markets ended mixed on Wednesday, 22 July 2009 as both the Dow Jones and the S&P 500 ended the session in the red after poor quarterly results by financial giants Morgan Stanley and Wells Fargo. However, the tech heavy Nasdaq Composite index successfully logged its eleventh straight advance on robust earnings from Apple Inc and Starbucks Corp.
The Dow slipped 34.68 points, or 0.39%, to 8,881.26 and the S&P 500 slipped 0.51 points, or 0.05%, to 954.07. However the Nasdaq Composite index rose 10.18 points, or 0.53%, to 1,926.38.
US President, Barack Obama said on Wednesday, 22 July 2009 said that the country has seen a stabilisation in the financial system.
Trading in the US index futures indicated the Dow could rise 25 points at the opening bell today, 23 July 2009.
The BSE 30-share Sensex jumped 387.92 points or 2.61% to 15,231.04, its highest closing since 12 June 2009. The Sensex opened 165.66 points higher at 15,008.78. At the day's high of 15,264.84, the Sensex advanced 421.72 points in mid-afternoon trade. The Sensex rose 154.63 points at the day's low of 14,997.75 in early trade.
The S&P CNX Nifty was up 124.85 points or 2.84% to 4,523.75, its highest closing since 12 June 2009. Nifty July 2009 futures were at 4539.95, at a premium of 16.20 points as compared to the spot closing.
The Sensex is up 5583.73 points or 57.87% in calendar year 2009 as on 22 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7070.64 points or 86.64% as on 23 July 2009.
Coming back to today's trade, the market breadth, indicating the overall health of the market, was strong. On BSE, 1797 shares advanced as compared with 856 that declined. 87 shares remained unchanged.
The BSE Mid-cap index gained 2.29% to 5,293.37 and BSE Small-cap index rose 2.16% to 5,942.85. However, both these indices underperformed the Sensex
All the sectoral indices on BSE logged gains. The BSE Realty index (up 5.08%), the BSE Consumer Durables index (up 4.47%), the BSE Auto index (up 3.87%), the BSE FMCG index (up 3.95%), the BSE Healthcare index (up 2.85%), the BSE Metal index (up 4.32%), outperformed the Sensex.
The BSE PSU index (up 1.37%), the BSE Oil & Gas index (up 2.39%), the BSE Bankex (up 1.73%), BSE Capital Goods index (up 2.08%), the BSE Power index (up 2.59%), the BSE IT index (up 1.99%), the BSE TECk index (up 1.55%), underperformed the Sensex.
Among the 30-member Sensex pack, 28 advanced while only 2 of them declined.
Realty stocks rose on the government's thrust on the housing sector in the Union Budget 2009-10 tabled in the Parliament on 6 July 2009. India's largest real estate developer by sales DLF jumped 7.60% to Rs 372.50 and was the top gainer from the Sensex pack.
Unitech (up 5.72%), Housing Development & Infrastructure (up 5.73%), Indiabulls Real Estate (up 3.49%), and Ackruti City (up 1.80%), advanced.
Infrastructure stocks rose on the government's thrust on the infrastructure sector in the Union Budget 2009-2010. Larsen & Toubro (up 2.95%), Reliance Infrastructure (up 7.21%), Lanco Infratech (up 3.54%), GMR Infrastructure (up 2.66%), and GVK Power Infrastructure (up 1.42%), rose
India's biggest power equipment maker by sales Bharat Heavy Electricals gained 0.66% after net profit rose 22.41% to Rs 470.59 crore on 27.64% rise in total income to Rs 5,898.51 crore in Q1 June 2009 over Q1 June 2008. Bhel outstanding order book stood at Rs 1,24,000 crore. The company announced the result during market hours on Wednesday, 22 July 2009.
Power stocks rose after strong response to India's second largest private sector power generation company by sales Tata Power Company's global depository receipt (GDR) on Wednesday. Tata Power Company rose 2.64% to Rs 1150. Among other power stocks, Reliance Power (up 5.66%), NTPC (up 1.97%), CESC (up 2.67%), gained.
Tata Power Company during trading hours on Wednesday 22 July 2009, said strong response for its GDR issue helped it raise $335 million as compared with an earlier announced plan to raise $250 million. The company will use the funds for its ongoing capital expenditure plans. Tata Power issued 14.8-million GDRs priced at $22.58 a piece, with each GDR representing one equity share, Tata Power said.
KEC International soared 9.56% after the company bagged four orders totaling Rs 471 crore. The company announced the fresh orders during the trading hours today, 23 July 2009.
Metal stocks gained after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 1.72% on Wednesday, 22 July 2009. Hindalco Industries (up 6.20%), Hindustan Zinc (up 5.67%), Nalco (up 2.66%), JSW Steel (up 4.63%), Tata Steel (up 4.10%), edged higher.
India's largest private sector copper marker by sales Sterlite Industries surged 5.27%. The company said on 18 July 2009 it has raised $1.5 billion though an American Depositary Shares (ADS) issue. Parent Vedanta Resources participated in the offering with an allocation of $500 million either directly or through a subsidiary. On allotment, Vedanta's shareholding in Sterlite will drop to 57.5% from 61.7%, assuming no exercise of over-allotment option
Maharashtra Seamless rose 1.87% after net profit rose 8.2% to Rs 65.22 crore on 20.1% rise in net sales to Rs 422.51 crore in Q1 June 2009 over Q1 June 2008. The company declared its results after market hours on Wednesday, 22 July 2009.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) advanced 3.19% to Rs 2040.40, a day ahead of its Q1 June 2009 results on Friday, 24 July 2009. The stock shrugged off reports that the petroleum ministry is considering issuing a notice to Reliance Industries (RIL) for allegedly violating the production sharing contract (PSC) governing supply and production of gas from the Krishna Godawari (KG) basin.
The government may even cancel the contract as it claims that the secret family agreement to divide the gas was signed without informing the government. The family agreement in question refers to a memorandum of understanding (MoU) drawn up in 2005, which forms the basis for the division of RIL and parts of which refer to gas supply by RIL to Reliance Natural Resources (RNRL).
Earlier, the Supreme Court on 20 July 2009, asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. 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.
India's largest oil exploration firm by revenue ONGC was down 0.44% ahead of its Q1 June 2009 results today, 23 July 2009. The stock gyrated in a band of Rs 1080 and Rs 1118 in the day.
Mangalore Refinery and Petrochemicals declined 2.66% after net profit slumped 50.31% to Rs 420.07 crore on 41.53% fall in total income to Rs 6,298.97 crore in Q1 June 2009 over Q1 June 2008. The company announced the results during trading hours today, 23 July 2009.
India's top small car maker by sales Maruti Suzuki India shot up 6.67% to Rs 1298.30 after the net profit rose 25.26% to Rs 583.54 crore on a 31.01% increase in total income to Rs 6709.53 crore in Q1 June 2009 over Q1 June 2008. The stock hit a record high of Rs 1305.50 in intra-day today, 23 July 2009. The result was announced during trading hours today, 23 July 2009.
Strong Maruti results boosted sentiment for other auto shares. Mahindra & Mahindra (up 4.82%), Tata Motors (up 4.62%), bajaj Auto (up 0.94%), and Ashok Leyland (up 1.85%), advanced.
India's largest cement manufacturer by sales ACC vaulted 5.84% after net profit soared 79% to Rs 485.61 crore on a 15.32% increase in total income to Rs 2138.24 crore in Q2 June 2009 over Q2 June 2008. The results were declared during trading hours today, 23 July 2009
India's top cigarette maker by sales ITC gained 5.88% after net profit rose 17.38% to Rs 878.80 crore on 5.14% rise in total income rose to Rs 4220.49 crore in Q1 June 2009 over Q1 June 2008. The results were unveiled during trading hours today, 23 July 2009
India's largest listed cellular services provider by sales Bharti Airtel reversed early gains and was down 1.20% to Rs 813 after the company average monthly revenue per user dropped to Rs 278 in Q1 June 2009 from Rs 305 in Q1 June 2008. Average monthly minutes of use by user -- another key metric used by analysts to gauge performance -- fell 2% to 478 minutes in Q1 June 2009 over Q4 March 2009. The decline in these parameters hurt investor sentiment. It was the top loser from the Sensex pack
Bharti's net profit net profit jumped 31.3% to Rs 2687.51 crore on a 13.88% rise in total income to Rs 9056.29 crore in Q1 June 2009 over Q1 June 2008. The results were declared before trading hours today, 23 July 2009.
India's second largest listed cellular services provider by sales Reliance Communications (RCom) gained 5.79% after it bagged a Rs 10,000-crore telecom infrastructure outsourcing deal from new entrant Etisalat DB Telecom (formerly Swan Telecom). The deal, which includes both towers and transmission, is spread over a 10-year period. The company made this announcement during market hours on Wednesday, 22 July 2009.
India's largest pharma company by market capitalisation Sun Pharma rose 1.62% to Rs 1275, rebounding sharply from day's low of Rs 1158. The early plunge was triggered on reports investors have initiated a lawsuit seeking class action status against its US subsidiary Caraco Pharmaceutical in the United States District Court.
On June 25, the US FDA had announced seizure of drug products from the company's three facilities in Michigan at Detroit, Farmington Hills and Wixom. Upto 33 different drugs were seized and the US FDA banned Caraco from manufacturing and selling these drugs in the US until there is assurance that the firm complies with manufacturing standards. The action followed Caraco's continued failure to meet the US FDA's current good manufacturing practices (cGMP) requirements.
Biocon spurted 3.13% after net profit jumped 283.55% to Rs 57.55 crore on 96% surge in net sales to Rs 71.40 crore in Q1 June 2009 over Q1 June 2008.
Banking shares eased from the day's high after inflation data. India's largest private sector bank by net profit ICICI Bank was up 1.33% to Rs 771, off the day's high of Rs 787.75. India's second largest private sector bank in terms of operating income HDFC Bank rose 0.33% to Rs 1451, off day's high of Rs 1470
India's biggest bank in terms of branch network State Bank of India (SBI) rose 1.73% to Rs 1722.90, off the day's high of Rs 1241. Finance secretary Ashok Chawla said on 22 July 2009 that the Centre will seek Cabinet approval to dilute government stake in the state-run bank.
Indian Bank rose 7.51% after net profit surged 52.40% to Rs 331.66 crore 27.82% rise in total income to Rs 2,230.39 crore in Q1 June 2009 over Q1 June 2008. The bank declared its results during the trading hours today, 23 July 2009.
Union Bank of India tumbled 4.60% after the Reserve Bank India said foreign institutional investors (FIIs) will have to get its approval to purchase equity shares as FII investment in the public sector bank has reached 18% against its permissible limit of 20%.
Union Bank of India's net profit rose 93.70% to Rs 442.19 crore on 34.45% rise in total income to Rs 3704 crore in Q1 June 2009 over Q1 June 2008. The state-run bank announced the results during trading hours today, 23 July 2009.
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 dedicated housing finance company by sales, HDFC rose 2.23%. The finance firm reported 20.68% rise in net profit to Rs 564.92 crore on 22.86% rise total income to Rs 2,849.07 crore in Q1 June 2009 over Q1 June 2008. The lender announced its result during late trade on Wednesday, 22 July 2009.
IT stocks rose on fresh buying following upbeat Q1 June 2009 results from frontline IT companies in the past few days.
India's third largest IT exporter by sales Wipro advanced 0.99% after consolidated net profit as per Indian accounting rules rose 0.54% to Rs 1015.50 crore on 2.5% fall in sales to Rs 6289.10 crore in Q1 June 2009 over Q4 March 2009. The company announced the results before trading hours on Wednesday, 22 July 2009.
India's largest IT exporter by sales TCS gained 2.19% after 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. The company announced the result after trading hours on 17 July 2009.
India's largest IT firm by sales Infosys shot up 2.75%. The government has launched a Government-to-Business (G2B) services e-biz project with Infosys as the technology partner. The project is among the 27 Central, State and Integrated Mission Mode Projects (MMPs) under the National E-Governance Plan (NEGP).
Tech Mahindra rose 1.95% even as net profit dropped 43% to Rs 131.6 crore on 6% rise in total revenues to Rs 1,113 crore in Q1 June 2009 over Q4 March 2009. The company attributed fall in net profit to surge in interest costs on debt it took to buy Mahindra Satyam, the erstwhile Satyam Computer Services. The results were declared after market hours on Wednesday, 22 July 2009. Shares of Mahindra Satyam surged 15.09% to Rs 104.90
Mahindra Satyam was the top traded counter on BSE with turnover of Rs 556.941 crore followed by Reliance Industries (Rs 438.71 crore), ICICI Bank (Rs 281.22 crore), Aban Offshore (Rs 189.99 crore), and Infosys Technologies (Rs 189.80 crore).
Mahindra Satyam, too, led the volume charts on BSE clocking volume of 5.53 crore shares followed by IFCI (1.89 crore shares), Ispat Industries (1.80 crore shares), Suzlon Energy (1.53 crore shares) and Unitech (1.47 crore shares) were the other volume toppers in that order.
Century Enka was locked at 10% upper limit after net profit galloped 489.40% to Rs 28.35 crore in Q1 June 2009 over Q1 June 2008. The company announced the fresh orders during the trading hours today, 23 July 2009.
Zee News jumped 4.93% after net profit rose 24.85% to Rs 11.91 crore on a 21.35% increase in total income to Rs 132.98 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours today, 23 July 2009.
Pre Session Commentary - July 23 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened with remarkable gains. US markets closed mixed amidst higher expectations of quarterly earnings by traders. In the Domestic arena there could be sector specific movement lead by quarterly results announced. Selling pressure can erupt anytime depending on cues from European markets. However there could be some early surge on today’s trade followed by a volatile session.
On Wednesday, Indian markets closed in red for the second consecutive day. After a phenomenal opening and pre-mid session rally, domestic benchmark indices gave up firmness to trade choppy. Traders could not muster buying sentiments despite good quarterly results from BHEL and Wipro. The negative trading of European markets and also US index futures trading in red garnered selling pressure in the domestic markets. Abrupt selling pressure after the post mid session pulled the bench mark indices below the psychological levels of 15k (Sensex) and 3400 (S&P CNX Nifty). From the sectoral front CG, Auto, Power and IT were the top losers of the day. However, PSU, Realty and CD were least affected. BSE Mid Cap and Small Cap index lost 0.97% and 0.35% respectively. Domestic markets are likely to trade volatile.
The BSE Sensex closed lower by 219.37 points at 14,843.12 and NSE Nifty ended lower by 70.20 points at 4,398.90 BSE Mid Caps and Small Caps closed low by 50.47 points and 20.46 points at 5,174.74 and 5,817.36 respectively. The BSE Sensex touched intraday high of 15,369.42 and intraday low of 14,786.58.
On Wednesday, the US stocks markets closed mixed. Higher expectations by traders from Corporate Earnings and also the profit booking pressures pulled Dow Jones into negative territory. Apple (AAPL 156.74, +5.23) reported better-than-expected earnings of $1.35 per share, which is $0.18 better than the expectation. On the financial space, better-than-expected earnings from Wells Fargo (WFC 24.45, -0.90) were partly overshadowed by news that the company''s revenues fell short of the consensus and net charge-offs increased markedly to almost $4.4 billion. Further more than 150 companies are expected to announce their latest quarterly results between this evening and Thursday''s opening bell. On US light crude oil futures for August delivery closed at $65.36 per barrel down by 0.4% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed lower by 34.68 points at 8,881.26, NASDAQ index gained 10.18 points to 1,926.38 and the S&P 500 (SPX) closed flat at 954.07.
Today major stock markets in Asia are trading positive. Hang Seng is up by 469.09 points at 19,717.26. Shanghai Composite is up by 22.603 points at 3,319.218. Japan''s Nikkei is trading up by 118.36 points at 9,841.52. Strait Times is up by 25.39 points at 2,476.22. Seoul Composite is up by 8.4 points at 1,502.44 and KLSE Composite is up by 14points at 1,148.70.
Indian ADRs ended mixed on Wednesday. In the IT space, Infosys was down 0.98%, Patni Computers was down 0.17% while Wipro was up 0.59% and Satyam Computers was up 2.52%. In the telecom space, Tata Communication was down 0.34% while MTNL was up 0.5%. In the banking space, HDFC Bank was down 2.31% and ICICI Bank was down 2.18%. In other sectors, Dr Reddy''s Labs was down 3.33%, Sterlite Industries was up 1.32% while Tata Motors was unchanged at $ 9.16.
The FIIs on Wednesday stood as net buyers in equity. Gross equity purchased stood at Rs 2,547.40 Crore, while the gross equity sold stood at Rs 2,497.30 Crore. The net investment of equity reported was Rs 50.10 Crore. There was no trade in debt market.
On Wednesday, the partially convertible rupee ended at Rs 48.52/53, 0.2% weaker than its previous close at 48.42/43. The rupee lost strength as domestic stock markets plummeted on weak global cues.
On BSE, total number of shares traded were 46.43 Crore and total turnover stood at Rs 6,671.65 Crore. On NSE, total number of shares traded were 108.42 Crore and total turnover was Rs 21,378.53 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 80050645 shares, followed by Suzlon Energy with 69328673, Tata Steel with 19621179, DLF with 19509844 and Reliance with 13420740 shares.
On NSE Future and Options, total number of contracts traded in index futures was 1009459 with a total turnover of Rs 21,731.01 Crore. Along with this total number of contracts traded in stock futures were 774528 with a total turnover of Rs 23,094.81 crore. Total numbers of contracts for index options were 1997574 with a total turnover of Rs 44,779.15 Crore and total numbers of contracts for stock options were 66283 and notional turnover was Rs 2,036.11 Crore.
Today, Nifty would have a support at 4,338 and resistance at 4,468 and BSE Sensex has support at 14,685 and resistance at 15,111.
Grey Market Premium - Excel Infoways, Raj Oil Mills, Adani Power
Excel Infoways Ltd. 80 to 85 5 to 7
Raj Oil Mills Ltd. 100 to 120 3 to 4
Adani Power 90 to 100 10 to 11
NHPC 28 to 33 (Approximate) 10 to 12
Indices seen opening on buoyant note, inflation eyed
Key benchmark indices are likely to open on an upbeat note, ending their two-day losing trend, on strong Asian equities. The SGX Nifty futures for July 2009 expiry jumped 47 points in Singapore. Companies announcing June 2009 quarterly results will be in spotlight. Inflation data in the 12 months to 11 July 2009 will be released by the government today, 23 July 2009.
ACC, Ambuja Cements, Bharti Airtel, Idea Cellular, ITC, Maruti Suzuki, ONGC, Siemens, Biocon, Union Bank among others will announce their June 2009 quarterly result today, 23 July 2009. The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 270 companies rose 43% Rs 13,279 crore on 11.3% growth in sales to Rs 1,01,409 crore in Q1 June 2009 over Q1 June 2008.
Asian markets were trading firm today, 23 July 2009. Key benchmark indices in Hong Kong, China, Taiwan, Singapore, South Korea and Japan rose by between 0.10% and 2.18%.
US markets ended mixed on Wednesday, 22 July 2009 as both the Dow Jones and the S&P 500 ended the session in the red. However, the tech heavy Nasdaq successfully logged its eleventh straight advance.
The Dow slipped 34.68 points, or 0.4%, to 8,881.26 and the S&P 500 slipped 0.51 points, or 0.1%, to 954.07. However the Nasdaq rose 10.18 points, or 0.5%, to 1,926.38.
Back home, as per the provisional figures on the NSE, foreign institutional investors (FIIs) bought shares worth Rs 66.84 crore on Wednesday, 22 July 2009 while domestic institutional investors sold shares worth Rs 224.58 crore.
Daily News Roundup - July 23 2009
RCom bags Rs100bn Etisalat deal to provide tower and transmission infrastructure in 15 circles. (ET)
Reliance Industries may get notice for production sharing contract violation. (ET)
Government may let SBI stake to fall to 55%. (BS)
Sesa Goa raises Rs5bn by allotting shares to promoters. (ET)
Crisil downgrades IDFC long term debt. (ET)
Tata Power raises US$335mn through GDRs. (ET)
Ranbaxy has received a final approval in Canada to manufacture and market Ran-amlodipine tablets. (BL)
Tata Communication may need to explore new financing opportunity to fund its US$2bn capex plan. (ET)
Sun Pharma arm faces class action suit in US. (ET)
Apollo Tyres is planning to invest Rs10bn in setting up an IT park and a hotel complex in Kerela. (FE)
Dr Reddy’s eyes Rs152bn revenues by FY13. (FE)
Yes Bank is looking to close four mandates in its US$100mn niche social investment bank initiatives in the next three to five weeks. (FE)
MTN team likely to meet SEBI officials. (ET)
Srei Equipment Finance Pvt Ltd, a JV between Srei Infrastructure and B&P Paribas has identified medical equipments and IT sector as new verticals for financing. (BL)
BSNL’s mega GSM contract of 93mn connections is stuck on pricing issues. (BL)
NHPC IPO may raise Rs18bn. (BS)
Moser Baer has settled its patent and license dispute with Philips. (BS)
Promoters of Kalindee Rail Nirman are planning to increase their stake in the company owing to a possible hostile takeover. (ET)
Government to take call on stimulus measures after G-20 meet. (ET)
Q1 FY10 direct tax kitty grows 3.65% to Rs594bn. (ET)
PSU sell-off likely to begin in August. (BS)
DoT may cancel rural license fee waiver. (BS)
Planning commission has worked out broad guidelines for infra JVs. (BS)
Commerce Minister has asked Finance Minister to take up the issue of refunding local levies like octroi and mandi tax to exporters. (BS)
Government to re-launch NELP-VIII on August 8. (FE)
Public sector oil firms will lose Rs28.8bn in revenues during July . (FE)
Choppy time, pluck some gains!
When the apple is ripe it will fall.
It was darkness after dawn as a thick cloud cover over India and China hid the sun when the eclipse began. The market too had its share of darkness and choppiness. The outlook remains hazy as investors search new reasons to justify their stand on equity investment.
After a flat start, the indices will swing mostly to global cues. A recovery may be always on the cards but avoid getting in stocks which appear ripe after the recent run. The dangerous mid-caps may be back on the shopping list even though the risk-reward ratio remains lower for now.
Asian markets are mixed just like the US indices. The Nasdaq managed to close in the green for the 11th straight session as Apple's profits nourished the bulls. But Boeing descended and Coca-Cola's profits lost its fizz. The Dow closed in the red while S&P 500 was flat.
Nouriel Roubini, who’s claim to fame is for predicting the current collapse, said the economy is turning a corner although he believes the recession is still far from over. Now whatever that means, back home in India, the results have been mostly on par or above expectations barring a few cement companies. Disinvestment (the buzzword for the bulls) may see action in mid-August as around 15 PSUs have been asked to give IPO feasibility report. On the flip side, a rise in refund payout has hurt the Centre’s net direct tax collections growth rate for the first quarter this fiscal.
While the spate of GDRs and QIPs have brought back India story in the limelight, there is the IDR (Indian Depository Receipts) option soon for foreign companies facing fund crunch globally to raise resources from Indian markets.
The dollar gained against the euro and fell versus the Japanese yen.
US. light crude oil for September delivery fell 21 cents to settle at $65.40 a barrel on the New York Mercantile Exchange.
The telecom space is seeing action. RCom has bagged a Rs100bn Etisalat deal to provide tower and transmission infrastructure in 15 circles.
MTN team is likely to meet SEBI officials to discuss the ramifications of the Airtel deal.
Heavyweight Reliance Industries may get notice for production sharing contract violation.
SBI is back in the limelight on reports that government may allow stake to fall to 55%.
In the pharma space, Sun Pharma could face pressure as its arm faces class action suit in US. A clarification from the company is likely soon. Meanwhile, Ranbaxy has received a final approval in Canada to manufacture and market Ran-amlodipine tablets. Dr Reddy’s is eyeing Rs152bn revenues by FY13.
Yes Bank is looking to close four mandates in its US$100mn niche social investment bank initiatives in the next three to five weeks, says a report.
The Indian markets fell for the second consecutive trading session and this time the fall was accompanied by strong volume. The BSE Sensex slipped by over 500 points intra-day while the NSE Nifty erased nearly 160 points from the day’s high.
After starting off on a firm footing, the bulls were unable to hold on to the early gains, as the momentum fizzled out in the afternoon trades on the back of profit booking in the Capital Goods, Auto and Power stocks.
As the day progressed, the sentiment was further dampened on account of a weak trend in equity markets across Europe. Asian markets too closed mixed.
Finally, the Sensex slipped by 219 points or 1.4% to end at 14,843 after touching a high of 15,369 and a low of 14,786. The index had opened at 15,124 against the previous close of 15,062. The NSE Nifty lost by 70 points or 1.6% to shut shop at 4,398.
Asian markets ended mixed. The Nikkei in Japan gained 0.7% at 9,723, Australia's S&P/ASX edged higher by 0.4% at 4,068. The Hang Seng index slipped by 1.3% to 19,248.
In Europe, stocks were trading in the red. The FTSE in the UK was down 0.2% at 4,471. The DAX was down 0.4% at 5,072 and the CAC 40 slipped 0.8% at 3,278.
Coming back to India, among the BSE sectoral indices, the BSE Capital Goods index was the top loser, losing 2%, followed by the BSE IT index that was down 1.8%. The BSE Auto index slipped 1.7% and BSE Power index was down 1.5%.
The BSE Mid-Cap index slipped 0.8% and the BSE Small-Cap index rose 0.2%.
Within the Sensex, the major losers were HDFC, BHEL, Grasim, JP Associates, Tata Steel, TCS, Reliance Infra and Maruti. Among the major gainers were, ONGC, DLF, Sterlite and NTPC.
Outside the frontline indices, the top losers included India Cement, Lic Housing Finance, IDFC, United Spirits, Thermax and Exide Ind.
Among the big gainers in the broader market were Moser Baer, Lupin, Gujarat NRE, Welspun Guj and Asian Paints.
Wipro announced a consolidated net profit for the reporting quarter is at Rs10.15bn versus Rs10.10bn in the previous quarter. Consolidated net sales for the quarter are Rs62.89bn compared to Rs64.82bn in Q4 FY09.
The IT Services revenue for the Q1 of the current fiscal year stood at US$1,033mn, down 1.3% over the January-March quarter. Wipro sees Q2 IT Services revenues at US$1,035-1,053mn.
The stock was down by1.5% to Rs451 hitting an intra-day high of Rs470 and an intra-day low of Rs446 recording volumes of over 0.95mn shares.
Shares of India Cement slipped sharply by 8% to Rs139 after the company posted a net profit of Rs1442.80mn for the quarter ended June 30, 2009 as compared to Rs1421.40mn for the quarter ended June 30, 2008.
Total Income has increased from Rs8763.30mn for the quarter ended June 30, 2008 to Rs9602.50mn for the quarter ended June 30, 2009.
The stock opened at Rs153 and made an intra-day high of Rs154 and a low of Rs138. Total traded volumes stood at 1.1mn shares.
BHEL posted Q1 net profit of Rs4.71bn up 22.6% as against Rs3.84bn in the same period last year. Total income increased from Rs46.2bn for the quarter ended June 30, 2008 to Rs58.9bn for the quarter ended June 30, 2009.
The stock ended lower by 3% to Rs2150 it opened at Rs2220 and made an intra-day high of Rs2247 and a low of Rs2126. Total traded volumes stood at 3.3mn shares.
The Board of Directors of Jet Airways would meet on July 24, 2009 for considering un-audited result and propose to consider various options for raising of additional capital in the said Board Meeting.
Shares of Jet Airways slipped by 2.6% to Rs249. The stock opened at Rs257 and made an intra-day high of Rs265 and a low of Rs244. Total traded volumes stood at 89,000 shares.
Shares of Moser Baer gained by over 5% to Rs81 after the company announced settlement of its long-drawn licensing and patent dispute with Philips. The amicable settlement paves the way for Moser Baer to maintain and strengthen its market leadership position as the world's leading manufacturer of optical media storage products and will help the Company further cement its relationship as the preferred OEM for the world's leading optical media brands.
Shares of NMDC gained by 1% to Rs369 after reports stated that the government is working out details of a plan to sell shares in the company. The stock opened at Rs375 and made an intra-day high of Rs383.55 and a low of Rs366. Total traded volumes stood at 0.21mn shares.
Shares of Pfizer gained by 1.6% to Rs775 after reports stated that the parent company has increased its stake in Indian arm to 71%. The stock opened at Rs761 and made an intra-day high of Rs782 and a low of Rs761. Total traded volumes stood at 3,000 shares.
Crude drops marginally
Prices drop for first time in six sessions as crude product stockpiles soar
Crude price ended lower on Wednesday, 22 July, 2009. This was the first drop for crude in six sessions. Prices fell today as energy department reported increase in crude product stockpiles for last week.
On Wednesday, crude-oil futures for light sweet crude for September delivery closed at $65.4/barrel (lower by $0.21 or 0.3%). It dropped to $63.76 earlier during the day. 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 55% since then. In July, 2009, it has dropped by 7.3% till date. Year to date, in 2009, crude prices are higher by 44.3%.
EIA reported today that total inventories of crude, gasoline and other petroleum products rose 1.9 million barrels in the week ended 17 July, 2009 to 1,117.6 million barrels, up for a sixth straight week to the highest level since September 1990. But crude oil inventories fell last week as the U.S. imported less oil, but inventories gains in gasoline and other products were more than the drop in crude. Meanwhile, petroleum demand rose slightly, but still stayed way below last year's level.
The report said that crude oil inventories fell by 1.8 million barrels last week. Gasoline inventories rose by 800,000 barrels and distillate stockpiles, which include diesel and heating oil, increased by 1.2 million barrels.
EIA also reported that while refiners used less crude in their production, oil imports fell by 346,000 barrels a day last week, resulting in a drop in crude inventories. Refinery inputs averaged 14.8 million barrels a day, down 300,000 barrels from a week ago. Utilization rate stood at 85.8%. Total petroleum products supplied, an implied gauge of consumption, rose to 18.917 million barrels a day last week, up 0.3% from a week ago. Consumption was still nearly 1 million barrels a day lower compared with a year ago.
Also at the Nymex on Wednesday, August reformulated gasoline rose 2.63 cents, or 1.5%, to $1.8383 a gallon and August heating oil rose 1.28 cents, or 0.8%, to $1.7112 a gallon.
August natural gas futures gained 8.8 cents, or 2.4%, to $3.793 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 higher by Rs 8 (0.25%) at Rs 3,170/barrel. Natural gas for August delivery closed at Rs 194.7/mmbtu, higher by Rs 7.8/mmbtu (4.2%).
IDFC
We recommend a sell in Infrastructure Development Finance Company (IDFC) from a short-term trading perspective. It is evident from the charts of IDFC that the stock bottomed out after nearing its 2006 low of Rs 43 in March. Since then it was on an intermediate-term uptrend till it encountered resistance at June peak of Rs 149 (a 52-week high). The stock reversed direction from there, triggered by negative divergence displayed in the week relative strength index (RSI). Following a recent bounce, the stock resumed its medium-term downtrend on July 22, diving almost 6 per cent with extraordinary volume. The weekly RSI is losing its momentum and is on the verge of entering the neutral region from the bullish zone. The daily RSI is declining in the neutral region towards the bearish zone. We are bearish on the stock from a short-term perspective. We anticipate the stock’s decline to continue until it knocks our price target of Rs 120. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 138.
via BL
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