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Tuesday, July 28, 2009
Adani Power IPO attracts strong investor response on day one
Allots 5.28 crore shares at Rs 95 per share to 6 anchor investors
Adani Power received spectacular response to its initial public offering which opened for subscription today, 28 July 2009. The IPO was subscribed 3.96 times on the day one. The IPO received bids for 98.59 crore shares compared to 24.87 crore shares on offer. The issue will close on 31 July 2009. Of the total issue size of 30.16 crore shares, 5.28 crore shares were allotted to anchor investors.
Adani Power has become the first Indian listing candidate to use new rules that allow companies to sign up anchor investors through a bookbuilding process, one day before the formal order taking starts. The company has allocated 5.28 crore shares at Rs 95 per equity share (at the mid-point of the price band) to six different anchor investors, some of which will take shares through several sub-funds in anchor portion of the Adani offering. The six buyers are: Ecofin, AIC Advantage Fund, CLSA, T Rowe Price International, Sundaram BNP Paribas Mutual Fund and Credit Suisse.
Of the 60% of the net issue allotted to qualified institutional buyers (QIBs), a maximum of 30% could be reserved under the anchor investor scheme. In this case, 30% of the QIB quota that the six anchor investors have bought forms 18% of the total issue size. As per Securities and Exchange Board of India (Sebi) norms, there is a 30-day lock-in for anchor investors.
Adani Power has fixed price band of Rs 90 to Rs 100 per equity share for its initial public offering (IPO). Adani Power is offering 30.16 crore equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The issue would constitute 13.84% of the post-issue paid-up capital of the company. The company has reserved 80 lakh shares for employees.
On 20 July 2009, Adani Power said it sold 36 million shares to a founder group firm and to private equity firm 3i. The shares were allotted on 25 June 2009 at Rs 81.42 a share to 3i Power Investments and at Rs 111.50 to Mauritius-based Capital Trade & Investments,
The proceeds of the IPO will be used to partly finance the construction and development of its coal-based power projects at Mundra in Gujarat and Tiroda in Maharashtra. Post listing, promoter Adani Enterprises will hold about 73.5% in the power firm.
Adani Power is implementing two thermal power plants in Mundra in Gujarat and Tiroda in Maharashtra. It has signed power purchase agreements with Haryana, Maharashtra and Gujarat governments for selling power from the 2,000 megawatt Mundra and 1,320 megawatt Tiroda projects. The company also proposes to set up a 1,320- megawatt plant in Rajasthan and another 1,980 megawatt project at Dahej in Gujarat.
Currently, Adani Power has no operational power plant except the modest 330-MW unit I of Mundra Power Project (MPP)'s phase I, synchronized in May 2009. All others are either under execution or on the drawing board. This Unit I of MPP is expected to go on stream this month and the revenue generation is expected thereafter
NHPC IPO opens on 7 August 2009
NHPC will raise nearly Rs 6,000 crore comprising of 5% divestment of government stake and infusion of 10% fresh equity
State-run power company NHPC plans to raise nearly Rs 6,000 crore through sale of shares in a price-band of Rs 30-36 in an IPO (initial public offer).
The issue will open on 7 August 2009 and close on 11 August 2009. The company would sell 168 crore shares comprising of 5% divestment of stake by the government and infusion of 10% fresh equity.
NHPC has a current capacity of 5175 megawatts (MW) and plans to have a capacity of 9600 MW by 2013.
NHPC's net profit rose 7.1% to Rs 1,075.22 crore on 19.1% rise in sales to Rs 2,671.85 crore in the year ended March 2009 over the year ended March 2008.
This will be the first IPO by a public sector enterprise after the United Progressive Alliance (UPA) assumed office for a second term in May this year. This is also the first stake sale by a state-run company in 17 months after REC went public in February 2008 to raise over Rs 1,600 crore.
Turnover jumps
ICICI Bank July 2009 futures at premium
Nifty July 2009 futures were at 4562, at a discount of 2.10 points as compared to the spot closing of 4564.10. Turnover in NSE's futures & options (F&O) segment spurted to Rs 76,854.19 crore from Rs 50,488.19 crore on Monday, 27 July 2009.
The near-month July 2009 F&O contract will expire on Thursday, 30 July 2009.
ICICI Bank July 2009 futures were at premium at 741 compared to the spot closing of 738.30.
Unitech July 2009 futures were near spot price at 96.05 compared to the spot closing of 95.70.
Tata Motors July 2009 futures were near spot price at 412.90 compared to the spot closing of 413.
In the cash market, the S&P CNX Nifty fell 8.20 points or 0.18% at 4564.10.
Asian markets advance further
Hang Seng, Shanghai consolidate gains while Sensex continued to buck the regional trend
Stock markets in Asian region advanced further on Tuesday, 28 July 2009, as investors tried to take some profit from recent rallies. The positive lead from Wall Street due to a better-than-expected surge in new home sales and better than expected earning reports consolidated belief of an economic revival.
On Wall Street, late-day buying sent stocks to a higher close Monday after earnings subdued the major indices most of the day. The Dow Jones Industrial Average rose 15.27 points, or 0.2%, to 9108.51, and the S&P 500 added 2.92 points, or 0.3%, to 982.18. The Nasdaq Composite edged up 1.93 points, or 0.1%, to 1967.89.
In the commodity market, crude oil fell in New York for the first time in four days as investors sold futures to lock in gains on concern prices have climbed too far amid expectations of a drop in demand. Oil prices rallied yesterday to a 3-week high, as equity markets climbed in the U.S. and Asia, signaling a potential economic recovery
Crude oil for September delivery declined as much as 48 cents, or 0.7%, to $67.90 a barrel in electronic trading on the New York Mercantile Exchange. It was at $68.19 a barrel at 11:31 a.m. Singapore time. Yesterday, it rose 33 cents, or 0.5%, to settle at $68.38, the highest since 1 July 2009.
Brent crude oil for September settlement traded at $71.07 a barrel, up 26 cents, on London’s ICE Futures Europe exchange at 2:36 p.m. Singapore time. Yesterday, it rose 49 cents, or 0.7%, to $70.81.
Gold gained in Asia, reversing an earlier decline, as the dollar traded near the lowest level in seven weeks against the euro and rising stocks and positive economic data spurred inflations concerns.
Gold for immediate delivery rose 0.2% to $955.82 an ounce at 2:35 p.m. in Singapore, after falling as much as 0.2%. The metal yesterday gained to $958.92, the highest since 11 June 2009. Crude oil for September delivery rose 0.3% to $68.56 a barrel.
In the currency market, US dollar remains generally soft while Aussie surges across the board, taking out 0.83 levels against dollar following upbeat comments from RBA Governor Stevens.
The Japanese yen softened to 95.16 against the US dollar.
The Hong Kong dollar was trading at HK$ 7.7500 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
In Sydney trade, the Australian dollar raced to the year's highs after surprisingly hawkish remarks on interest rates from RBA governor Glenn Stevens fuelled bets a rate hike here may be on the horizon.
At the local close, the dollar was trading at $US0.8307, up from yesterday’s $US0.8222. It was the highest since September 2008, breaking key resistance of $US0.8265 in the process.
Coming back in equities, most Asian markets ended higher after a roller-coaster session Tuesday, with hopes for earnings growth and broker upgrades helping some indexes reverse early declines.
In Japan, the benchmark indices snapped nine days of winning streak by finishing the session edge lower, amid concerns about overheating after the key Nikkei index topping the 10,000-point level. Tokyo market hovered most of time in red as investors turned to consolidate gains amid caution over the rally’s pace after the Nikkei gained over 11% in the past nine sessions through Monday. At the closing bell, the Nikkei 225 Stock Average index has dropped 1.4 points, or 0.03%, to 10,087.26, while the broader Topix index rose 1.87 points, 0.2%, to 930.
On the economic front, the number of bankruptcies of companies related to the auto industry such as parts suppliers and secondhand car dealers shot up 50.8% in the first half of 2009 from the year before to 273, a credit research institute said Tuesday
In Mainland China, stock market finished the session edge higher with benchmark indices touched fresh fourteen month high, powered by optimism about company earnings and rising liquidity in the region. Technology shares and retailers spurted on confidence a rebound in regional economies will boost earnings. Materials were steady on optimism a global economic recovery will boost demand for the metal. Steel stocks rally on Goldman Sachs upgrade.
At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, added 0.09% to 3,438.37, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, advanced 0.33% to 3,755.82.
On the economic front, China will cut gasoline and diesel prices by 220 yuan ($32) per metric ton from tomorrow to reflect a drop in global crude costs, state-run China Central Television said on its Web site today. The Chinese government controls prices under a mechanism introduced in December that takes into account crude-oil costs, taxes and a profit for refiners.
In Hong Kong, the benchmark index pared back early losses to finish the session higher, buoyed by strong gains from financials and properties as it remain darlings of the market on expectations of strong earnings performance. Materials stocks surged on firmer commodity prices. Meanwhile, shares of renewable energy companies gained on signs government spending will drive up demand for their products.
The Hang Seng Index surged 372.92 points, or 1.84%, to 20,624.54, while the Hang Seng China Enterprise Index spurted 234.96 points, or 1.93%, to 12,424.96.
On the economic front, the Hong Kong Monetary Authority said that the new residential lending in the territory soared to its highest on record in June 2009 amid low interest rates and new launches.
In Australia, the stock market posted its eleventh straight day of gains today, with most of heavyweight posting solid gains on the back of another positive lead from blue chip stocks on Wall Street and firmer commodity prices. An upbeat speech by Reserve Bank Governor Glenn Stevens also helped to lift the market.
At the closing bell, the benchmark S&P/ASX200 index surged 29.9 points, or 0.72%, to 4,169.5, meanwhile the broader All Ordinaries rose 26.2 points, or 0.63%, to 4,174.
On the economic front, the National Australian Bank (NAB) business survey for the June quarter showed business confidence index rose 20 index points to minus-four points in the quarter ended June 2009, from minus-24 points at the end of the first quarter. It also showed business conditions had improved during the period.
Meanwhile the Reserve Bank Governor has maintained his upbeat assessment on economic prospects, noting, “The downturn we are having may not turn out to be one of the more serious ones of the post-War era”. The Governor indicated that one of the biggest challenges for Australia was to ensure that cheap housing finance didn’t lead to higher house prices but rather more homes being built.
Reserve Bank of Australia Gov. Glenn Stevens also said Australia’s economy may rebound faster than the country’s central bank had predicted six months ago on improving consumer and business confidence.
In New Zealand, equities continued to rise although the momentum was subdued. The benchmark index climbed through the 3000 level for the first time in 9-1/2 months. The NZX50 rose 0.68% or 20.464 points to 3018.47. The NZX 15 increased 0.49% or 27.41 points to close at 5599.11.
On the economic front, New Zealand’s value of seasonally adjusted exports and imports both fell in the June 2009 quarter, down 5.4 percent and 3.4 percent, respectively, Statistics New Zealand said on Tuesday. These falls followed decreases of 5.0 percent for exports and 13.7 percent for imports in the March 2009 quarter. New Zealand's trade deficit grew faster than expected in June. Exports for the month of June were valued at NZ$3.2 billion, a decrease of NZ$395 million or 11.0 percent from the month before. Import values totaled NZ$3.6 billion, down NZ$192 million or 5.1% on month.
In South Korea, stocks closed higher as foreigners continued their buying spree on hopes of positive U.S. consumer data. The benchmark Korea Composite Stock Price Index (KOSPI) inched up 1.98 points to 1,526.03 in range-bound trading.
In Singapore, the stock market rose on tracking positive lead from Wall Street overnight and other Asian market, boosted by expectation for upbeat economic data and better than expected corporate results. Major blue chip stocks outperformed on hopes of strong results from leading companies and confidence about a US economic recovery. Banks extended gains on tacking US peers. Manufacturing and multi-industries stocks surged amid bullish sentiment emanating from stronger equity markets and positive economic data. The blue chip Straits Times Index surged 47.38 points, or 1.84%, to 2,624.04.
In Philippines, the stock market hit eleven months high level, as investors seemed to have shrugged off political noise and focused on the bright economic prospects going forward. The benchmark index PSEi mounted 1.32% or 36.14 points to 2,768.76,highest since 4 September 2008, while the All Shares index increased 1.34% or 23.19 points to 1,753.85.
Manufactures reduced output for the seventh consecutive month in May but at a slower rate, indicating a revival in demand from both domestic and external markets. Factory output — as measured by the volume of production index — plunged by 13% in May from a year ago, a softer annual decline than April’s -18.2%, the National Statistics Office (NSO) reported yesterday. The month-on-month result was better, with production growing by 8% as sales rebounded. Monthly output in April fell by -contracted by 3.2%.
The National Government yesterday raised more funds than planned on its most successful auction so far this year. The auction committee took advantage of the drastic decline in the yields of its short-term debts as driven by high demand and by the ample liquidity that has been running in the system for weeks now thus, should already be put to work. The market was obviously very liquid that even without the maturing government debts this week amounting to P5.4 billion, it still had sufficient and enough cash.
In India, key benchmark indices ended with modest losses after swinging wildly either ways during the course of the day. Volatility rose after the Reserve Bank of India raised inflation forecast while keeping key policy rates unchanged at their historically low level at a quarterly monetary policy review today. The BSE 30-share Sensex went down 43.10 points or 0.28% to 15,331.94. The S&P CNX Nifty went down 8.20 points or 0.18 % to 4,564.10.
On the economic front, the RBI has kept the key rates unchanged and increased the inflation forecast to 5% by end March 2010 from earlier 4%. The central bank raised its inflation forecast, saying an uncertain outlook for monsoon rains could "accentuate" inflation for already-high food prices. The repo rate, at which the central bank lends cash to banks, stays at 4.75%, and the reverse repo rate, at which it absorbs surplus cash from the banking system, stays at 3.25%. Both these rates are at record low level. The statutory liquidity ratio (SLR) was also kept unchanged at 24%.
The RBI also kept the cash reserve ratio (CRR), the amount of funds banks have to keep on deposit with it, unchanged at 5%. The RBI said the deposit growth is seen at 19% adding that there is scope for the banks to cut interest rates. The GDP is expected to grow at 6% in FY 2010, with an upward bias, the central bank said
RBI said it would maintain an accommodative monetary stance until robust signs of recovery in the economy are visible. The central bank will be ready with a roadmap to reverse the expansionary stance quickly and effectively thereafter. The Reserve Bank of India will have to reverse the expansionary measures to anchor inflation expectations and subdue inflationary pressures while preserving the growth momentum the exit strategy will be modulated in accordance with the evolving macroeconomic developments, the RBI said.
The conduct of monetary policy will continue to condition and contain perception of inflation in the range of 4% to 4.5%. This will be in line with the medium-term objective of 3% inflation consistent with India's broader integration with the global economy, the RBI said.
The central bank said it would actively manage liquidity to avoid government borrowing crowding out private credit demand. RBI also said that government will need to return to a path of fiscal consolidation.
Elsewhere, Malaysia's Kula Lumpur Composite index went up 1.38% or 15.95 points to 1172.38 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2237.10.
In other regional markets, European shares struggled to gain for the 11th time in 12 sessions, as investors took on board a mixed bag of earnings from companies such as EADS, BBVA, Deutsche Bank and BP. At the regional level as the U.K. FTSE 100 index declined 0.23% or 10.37 points to 4,576, the German DAX index traded flat at 5,256 and the French CAC-40 index was also flat at 3,375.
Sensex ends lower; Tata Motors soars 10.47%
The Sensex ended on a lower note ahead of F&O expiry. Broader markets outperformed the Sensex. Realty stocks were in the limelight followed by auto and metal stocks, while FMCG and banking stocks dropped.
It opened with a gain of 53.46 points, at 15,428.50 on Tuesday on mixed global cues and soon fell into the negative terrain. RBI announcement did not cheered the market. It continued to trade in the negative, touching a low of 15,240.53 on the back of profit booking seen in select frontliners. After the RBI news, the market turned choppy and traded in a narrow range rest of the day. The index however moved up into the positive and touched a high 15,463.46. Finally, the index closed in the red.
As expected, the Reserve Bank of India (RBI) kept key policy rates unchanged. The repo rate under the liquidity adjustment facility (LAF) has been retained unchanged at 4.75%. The reverse repo rate under the LAF has been retained unchanged at 3.25%. The cash reserve ratio (CRR) of scheduled banks has been retained unchanged at 5% of net demand and time liabilities (NDTL). Statutory liquidity ratio (SLR) also left unchanged at 24%.
BSE Midcap and Smallcap index rose 1.13% and 1.68% respectively.
European stocks advanced after earnings beat analysts` estimates. The futures on the Standard & Poor`s 500 Index were little changed. UK`s benchmark index FTSE 100 declined 6.84 points, or 0.15%, to trade at 4,579.29. French benchmark index CAC 40 rose 0.18 points, or 0.01%, to trade at 3,372.54 and Germany`s benchmark index DAX gained 7.78 points, or 0.15% to trade at 5,259.26. (4.13 p.m., IST)
Futures on the S&P 500 dipped 2.10 points to 977.80 at 4.07 p.m. Dow Jones Industrial Average futures declined 13 points to 9,057, Nasdaq-100 Index futures fell 2.50 points to 1,597.
The Sensex ended the day with a loss of 43.10 points, or 0.28% at 15,331.94 after touching a high of 15,463.46 and a low of 15,240.53. The broad-based NSE Nifty fell 8.20 points, or 0.18% at 4,564.10 after hitting a high of 4,599.90 and a low of 4,529.15.
Major gainers in the 30-share index were Tata Motors (10.47%), Reliance Infrastructure (3.91%), DLF (3.40%), Reliance Communications (2.98%), Maruti Suzuki India (2.84%), and Tata Steel (2.54%).
On the other hand, Hindustan Unilever (7.28%), ICICI Bank (2.37%), Grasim Industries (1.77%), State Bank Of India(1.70%), Infosys Technologies (1.51%), and Reliance Industries (1.46%) were the major losers in the Sensex.
Overall market breadth was positive. Out of the total 2,745 stocks traded at BSE, 1,709 advanced, 945 declined while 91 remained unchanged.
Initial public offering (IPO) of Ahmedabad based Adani Power, promoted by Adani Enterprises, received overwhelming response today. The issue has managed to achieve full subscription with in hours of its opening.
As at 1:45 p.m, the issue was subscribed 3.87 times. A total of 962,302,445 bids were received out of which 1,306,305 bids were received at cut-off price.
The company has proposed a public issue of approximately 301.65 million equity shares of Rs 10 each for cash at a price to be decided through 100% book building process. The issue closes on July 31, 2009.
The price band of the issue has been fixed at Rs 90 to Rs 100 a share. It hopes to raise around Rs 30.16 billion at cap price. The net issue will constitute 13.47% of the post issue paid up capital of the company.
Post Session Commentary - July 28 2009
The domestic market extended its previous session’s movement to end slightly below the dotted line after exhibiting volatility throughout the session. Market ignored positive cues from Asian markets and remained choppy after the announcement of the RBI’s quarterly monetary policy review. The RBI in its quarterly monetary policy review on 28th July, has kept the key rates unchanged. On the other hand, RBI remained optimistic about the GDP growth as it expected GDP to grow at 6% in FY10 with an upward bias. Further the RBI has increased the inflation forecast to 5%. The Realty index remained in the lime light during the session on account of the government’s latest announcement of tax benefits as well as keeping the policy rates unchanged by RBI in its quarterly monetary policy review. However, market recovered during afternoon session on a little buying before slipping again. Meanwhile, benchmark indices also exhibited volatility ahead of F&O expiry on 30th July 2009. BSE Sensex ended below 15,350 level and NSE Nifty closed around 4,560 mark.
Market opened on upbeat note though pared all gains soon after start and turned negative on selling pressure emerged in key stocks. Meanwhile, the US stocks markets ended marginally higher on Monday, as investors sentiments were carried away by the biggest jump in new-home sales data in more than eight years. Further, Indian benchmark witnessed instability and continued to trade with negative bias till mid session ahead of F&O expiry on coming Thursday. Stocks fluctuated also after interest rates left unchanged in RBI’s quarterly monetary policy review. However, market managed to recover during afternoon trade on some bouts of buying but was unable to sustain the momentum and slipped again to close near unchanged level. From the sectoral front, FMCG, Bank, Consumer Durable and Oil & Gas stocks witnessed most of the selling from these baskets. However, Realty, Auto, Metal and Power stocks managed to gain favour from the market. BSE Mid Cap and BSE Small Cap indices remained in limelight as closed with gains of more than 1% each.
Among the Sensex pack 20 stocks ended in green territory and 10 in red. The market breadth indicating the overall health of the market remained positive as 1709 stocks closed in green while 945 stocks closed in red and 91 stocks remained unchanged in BSE.
The BSE Sensex closed slightly lower by 43.10 points at 15,331.94 and NSE Nifty ended marginally down by 8.20 points or at 4,564.10. BSE Mid Caps and Small Caps closed with gains 61.87 and 103.07 points at 5,531.37 and 6,245.81 respectively. The BSE Sensex touched intraday high of 15,463.46 and intraday low of 15,240.53.
The RBI on Tuesday kept the key policy rates unchanged but increased the inflation forecast to 5%. RBI kept the repo rate, at which the central bank lends cash to banks, at 4.75% and the reverse repo rate, at which it absorbs surplus cash from the banking system, stays at 3.2%, according to the Q1 Monetary Policy. Moreover, the RBI also kept the cash reserve ratio unchanged at 5.00%t. The deposit growth is seen at 19% and the review has said that there is scope for the banks to slash interest rates. The SLR also remains unchanged at 2%. Besides, the GDP is expected to grow at 6% while the money supply growth is seen at 1%, according to the quarterly review of the economy.
On 28th July 2009, the government had announced some additional steps to bolster the economy, as lowered the interest rates on homes loans for affordable housing and extended a tax holiday given to industrial parks. Finance minister Pranab Mukherjee on Monday told the Lok Sabha that Home loans of up to Rs. 10 lakh for properties provided the value of home doesn’t exceed double that amount will now come with a 1% subsidy on the interest. Profits from housing projects approved by a local authority between April 1, 2007 and March 31, 2008 will be tax free if they are completed before March 31, 2012. Further, companies working out of industrial parks can now plan long-term with the tax breaks being extended to two more years, till March 31, 2011.
Gainers from the BSE Sensex pack are Tata Motors (10.47%), Reliance Infra (3.91%), DLF Ltd (3.40%), Rcom (2.98%), Maruti Suzuki (2.84%), Tata Steel (2.54%), Tata Power (2.30%), ACC Ltd (2.10%), NTPC Ltd (1.33%), Bharti Airtel (0.97%), Wipro Ltd (0.92%), M&M Ltd (0.81%), Sterlite Indutries (0.75%), Sun Pharma (0.74%) and ITC Ltd (0.73%).
Losers from the BSE Sensex pack are HUL (7.28%), ICICI Bank (0.27%), Grasim Industries (1.77%), SBI (1.70%), Infosys Tech (1.51%), Reliance (1.43%), HDFC Bank (0.66%), Herohonda Motors (0.56%) and L&T Ltd (0.34%).
On the global markets front the Asian markets that opened before the Indian market, ended mostly higher. Shanghai Composite, Hang Seng, Straits Times and Seoul Composite ended up by 3.16, 372.92, 47.38 and 1.98 points at 3,438.37, 20,624.54, 2,624.04 and 1,526.03 respectively. However, Nikkei 225 lost 1.40 points at 10,087.26.
European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading up by 15.98 points at 5,267.53 and in London FTSE 100 is trading higher by 5.54 points at 4,591.67.
The BSE FMCG index closed lower by (1.33%) or 35.49 points at 2,638.09. HUL (7.28%), Godrej Cons (3.44%), Britania Indus (1.60%) and Tata Tea Ltd (0.73%) ended in red territory.
The BSE Bank index dropped by (1.22%) or 101.98 points to close at 8,227.35 after RBI revised its wholesales price inflation forecast to 5% by end March 2010 as against 4% projected earlier. Main losers are Bank of India (4.21%), ICICI Bank (2.37%), Oriental Bank (1.81%), SBI (1.70%) and Karnataka Bank (1.55%).
The BSE Consumer Durable index ended down by (0.82%) or 26.08 points at 3,164.98. Losers are Blue Star L (3.08%), Titan Ind (1.59%) and Rajesh Export (0.24%).
The BSE Realty index surged (4.64%) or 181.81 points at 4,090.12 on government’s latest announcement of tax benefits. Unitech Ltd (8.81%), Mahindra Life (8.10%), Sobha Dev (5.77%), Pheonix Mill (5.08%) and Housing Dev (4.72%) closed in positive territory.
The BSE Auto index ended higher by (1.92%) or 105.71 points at 5,622.99. Scrips that gained are Tata Motors (10.47%), Bosch Ltd (4.45%), MRF Ltd (4.33%), Maruti Suzuki (2.84%) and Bharat Forge (2.78%).
Tata Motors ended higher by 10.47% as posted better-than-expected quarterly earnings. The company reported a 58% growth in net profit to Rs. 514 crore in the first quarter ended June 30 as against Rs. 326 crore in the previous corresponding quarter.
Reliance Power advanced by 0.34%. The company has raised more than Rs 20,000 crore for funding its three projects of total capacity of 5,000 MW. This includes Rs 15,000 crore for the 4,000 MW Sasan thermal power project in Madhya Pradesh.
Escorts Ltd zoomed 2.59% after net profit increased in triple digit 138.7% to Rs 22.22 crore in Q3 June 2009 over Q3 June 2008.
BSE Bulk Deals to Watch - July 28 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
28/7/2009 532727 ADHUNIK MET CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED B 1000000 94.00
28/7/2009 532727 ADHUNIK MET ARION COMMERCIAL PVT LTD S 1011584 94.00
28/7/2009 519532 ASIAN TEA EX HARIRAM GARG S 66345 25.76
28/7/2009 500038 BALRAMPUR C* RELIANCE CAPITAL MUTUAL FUND B 2495836 107.00
28/7/2009 500038 BALRAMPUR C* JANUS WORLD FUND PLC - A/C GLOBAL TECHNOLOGY FUND S 3000000 107.36
28/7/2009 519600 CCL PRODUTS VIMLA JAJOO B 100000 160.00
28/7/2009 519600 CCL PRODUTS SEEPRA JAJOO S 100000 160.00
28/7/2009 507833 COMPUTER POI VSL SECURITIES PVT LTD B 65624 5.74
28/7/2009 512199 CORE PROJECT SHARAD KANTILAL SHAH B 830531 121.25
28/7/2009 512199 CORE PROJECT CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED S 985276 121.27
28/7/2009 532707 DYNEMIC PRO REHWA CORPORATION LIMITED B 110004 16.18
28/7/2009 532707 DYNEMIC PRO RUCHI GLOBEL LIMITED B 130002 16.25
28/7/2009 532707 DYNEMIC PRO VIRENDRA AGRAWAL S 67733 16.29
28/7/2009 532707 DYNEMIC PRO RAJIV MOHAN GUPTA S 75321 16.08
28/7/2009 532707 DYNEMIC PRO ALOK DIRODIA S 65000 16.25
28/7/2009 532022 FILAT FASH KALPANA SONU PADYAL B 50000 99.82
28/7/2009 532022 FILAT FASH BIJAL BHATT S 40000 99.76
28/7/2009 530945 GANGOTRI I&S M/S ADVANCE FINSTOCK S 45536 20.04
28/7/2009 530655 GOOD LUCK ST RAGHVIR GARG S 125000 36.00
28/7/2009 513337 GUJ.TOOLROOM SANGHVI FINCAP LTD. B 35200 9.94
28/7/2009 513337 GUJ.TOOLROOM DEVANG JAYANT KUMAR GADOYA S 50000 9.94
28/7/2009 513337 GUJ.TOOLROOM DEVANG JAYANTKUMAR GADOYA S 30000 9.94
28/7/2009 524669 HESTER BISC VIMLA JAJOO B 35000 92.75
28/7/2009 524669 HESTER BISC SURESHKANMAL JAJOO B 36837 92.75
28/7/2009 524669 HESTER BISC SEEPRA JAJOO S 71836 92.75
28/7/2009 517370 INCAP LIMITE CHALLAGULLA NEELIMA B 150000 12.38
28/7/2009 517370 INCAP LIMITE NUZIVEEDU SEEDS LIMITED S 150000 12.38
28/7/2009 509684 INDIA FOILS SAINATH HERBAL CARE MARKETING P.LTD S 156790 15.93
28/7/2009 523810 KALE FILMS KIRAN SUTTAMCHAND B 291343 1.24
28/7/2009 523810 KALE FILMS RAKESH HASMUKHLAL SHAH S 520000 1.24
28/7/2009 522259 KALIN RAIL N BP FINTRADE PRIVATE LIMITED B 124469 147.19
28/7/2009 522259 KALIN RAIL N BP FINTRADE PRIVATE LIMITED S 120077 147.32
28/7/2009 530255 KAY POW PAP JOLLY GUPTA B 130780 6.26
28/7/2009 530255 KAY POW PAP NARENDER GUPTA B 120302 6.66
28/7/2009 530255 KAY POW PAP SUNDER DASS AGARWAL B 67215 6.64
28/7/2009 530255 KAY POW PAP KAILASH CHAND GUPTA B 121277 6.82
28/7/2009 530255 KAY POW PAP JOLLY GUPTA S 65780 6.95
28/7/2009 530255 KAY POW PAP NARENDER GUPTA S 72039 6.71
28/7/2009 530255 KAY POW PAP KAILASH CHAND GUPTA S 108124 6.28
28/7/2009 530255 KAY POW PAP B.S.KHANDELWAL S 201706 6.09
28/7/2009 530255 KAY POW PAP GIRRAJ PRASAD GUPTA S 111046 6.37
28/7/2009 506528 KELTECH ENRG CHANCHAL DEVI LODHA B 7683 162.29
28/7/2009 531261 KUSHAGRA SO KKSS BUILDERS PRIVATE LIMITED S 71683 5.69
28/7/2009 513536 LESHA ENER SURYAJA INFRASTRUCTURE PVT LTD B 1555000 41.00
28/7/2009 513536 LESHA ENER SURESHINHJI P DESAI S 1555000 41.00
28/7/2009 526179 LUDLOW JUTE MPR BEARING & INVESTMENT PVT.LTD. S 90000 17.20
28/7/2009 513685 MULTI ARC IN VIMLA JAJOO B 100000 8.85
28/7/2009 513685 MULTI ARC IN SURESHKANMAL JAJOO B 100000 8.85
28/7/2009 513685 MULTI ARC IN SEEPRA JAJOO S 200000 8.85
28/7/2009 512449 PACE TEXTILES SUKUSAMA TRADING & INVESTMENTS PVT LTD B 213738 42.49
28/7/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC JMP SECURITIES PVT LTD B 197008 1076.75
28/7/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC JMP SECURITIES PVT LTD S 189673 1076.76
28/7/2009 531646 RFL INTERNAT JATIN J HARIA(HUF) B 30000 1.15
28/7/2009 531646 RFL INTERNAT JATINJ HARIA B 40000 1.15
28/7/2009 531646 RFL INTERNAT PRAGNA JATIN HARIA B 30000 1.15
28/7/2009 531646 RFL INTERNAT KHUSHALCHAND SHAMJI HARIA B 50000 1.13
28/7/2009 531646 RFL INTERNAT LAXMIBEN KHUSHALCHAND HARIA B 50000 1.15
28/7/2009 531646 RFL INTERNAT HITENDRA KHUSALCHAND HARIA B 50000 1.15
28/7/2009 531646 RFL INTERNAT HITENDRA HARIA HUF B 50000 1.15
28/7/2009 531646 RFL INTERNAT UNIGLORY PROJECTS PVT. LTD. S 127254 1.15
28/7/2009 531646 RFL INTERNAT AGARSON TRADING PVT. LTD. S 149830 1.15
28/7/2009 512413 SPECTACLE BHAVESH PRAKASH PABARI S 350000 41.43
28/7/2009 590037 STEEL EXCH KIRAN SUTTAMCHAND B 175000 35.00
28/7/2009 530611 STURDY INDS S K INVESTMENTS B 50000 33.60
28/7/2009 530611 STURDY INDS KINOFOLK INDUSTRIES LTD. B 100000 33.34
28/7/2009 526133 SUPERTEX IND HARISH RATILAL SHAH B 67366 58.77
28/7/2009 526133 SUPERTEX IND HARISH RATILAL SHAH S 67366 58.86
28/7/2009 503657 VEER ENERGY ATULBHAI GORDHANBHAI VAJA B 14101 284.34
28/7/2009 503657 VEER ENERGY VAJSHAH SHARES & CONSULTANCY P B 15000 284.64
28/7/2009 503657 VEER ENERGY VILPABEN PRANAVBHAI VORA S 17151 285.28
28/7/2009 531249 WELL PACK PA SANTOSH VISHRAM GHADSHI B 25000 160.50
28/7/2009 531249 WELL PACK PA PANDYA HARDIK M B 22709 161.19
28/7/2009 531249 WELL PACK PA HEMANT MADHUSUDAN SHETH B 30000 160.10
28/7/2009 531249 WELL PACK PA PANDYA HARDIK M S 22757 160.31
NSE Bulk Deals to Watch -July 28 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
28-JUL-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,BUY,204134,966.56,-
28-JUL-2009,BALRAMCHIN,Balrampur Chini Mills,RELIANCE MUTUAL FUND,BUY,2500000,107.25,-
28-JUL-2009,CCL,CCL Products (I) Ltd,SURESH KANMAL JAJOO,BUY,95394,158.50,-
28-JUL-2009,EMCO,Emco Limited,SUWALAL CHHAGANMAL BAFNA,BUY,110913,89.64,-
28-JUL-2009,GITANJALI,Gitanjali Gems Limited,J P M S L A/c Copthall Mauritius Investment Ltd,BUY,515501,106.00,-
28-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,11863653,23.11,-
28-JUL-2009,KALINDEE,Kalindee Rail Nirman (Eng,BP FINTRADE PRIVATE LIMITED,BUY,91085,146.54,-
28-JUL-2009,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD.,BUY,2286249,35.78,-
28-JUL-2009,RIIL,Reliance Indl Infra Ltd,BP FINTRADE PRIVATE LIMITED,BUY,82775,1067.90,-
28-JUL-2009,RIIL,Reliance Indl Infra Ltd,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,BUY,79420,1074.31,-
28-JUL-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,SELL,204134,967.11,-
28-JUL-2009,BALRAMCHIN,Balrampur Chini Mills,JANUS GLOBAL TECHNOLOGIES FUND,SELL,4500000,107.91,-
28-JUL-2009,BANKRAJAS,Bank Of Rajasthan Ltd,Copthall Mauritius Investment Ltd,SELL,1000000,61.64,-
28-JUL-2009,CCL,CCL Products (I) Ltd,KABRA SEEPRA SUMEET,SELL,95394,158.50,-
28-JUL-2009,EMCO,Emco Limited,SUWALAL CHHAGANMAL BAFNA,SELL,300000,89.89,-
28-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,11881090,23.12,-
28-JUL-2009,KALINDEE,Kalindee Rail Nirman (Eng,BP FINTRADE PRIVATE LIMITED,SELL,87097,146.53,-
28-JUL-2009,KIL,Kamdhenu Ispat Limited,KABRA SEEPRA SUMEET,SELL,98290,17.37,-
28-JUL-2009,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD.,SELL,2286249,35.79,-
28-JUL-2009,RIIL,Reliance Indl Infra Ltd,BP FINTRADE PRIVATE LIMITED,SELL,72290,1062.29,-
28-JUL-2009,RIIL,Reliance Indl Infra Ltd,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,SELL,70448,1070.14,-
28-JUL-2009,RSYSTEMS,R Systems International L,BHAVOOK TRIPATHI,SELL,69944,73.64,-
28-JUL-2009,SIYSIL,Siyaram Silk Mills Ltd,KABRA SEEPRA SUMEET,SELL,60000,121.00,-
Realty, auto shares cushion Sensex's fall as turnover swells
Key benchmark indices ended with modest losses after swinging wildly either ways during the course of the day. Volatility rose after the Reserve Bank of India raised inflation and GDP growth forecast while keeping key policy rates unchanged at their historical low level at a quarterly monetary policy review today, 28 July 2009. The BSE 30-share Sensex lost 43.10 points or 0.28%, off 131.52 points from the day's high but up 91.41 points from the day's low. European markets were slightly lower and most Asian stocks rose.
Poor Q1 results continued to weigh on the index heavyweight Reliance Industries for the second day in a row. Banking shares slipped. However power stocks advanced on strong response to Adani Power's initial public offer (IPO).
In stock specific activity, Tata Motors surged over 10% on better-than-expected Q1 results it announced during trading hours on Monday, 27 July 2009. Maruti Suzuki India struck a record high of Rs 1416.70. However Hindustan Unilever retraced sharply from 52-week high of Rs 306 after reporting fall in net profit in Q1 June 2009.
The Securities and Exchange Board of India (Sebi) on Monday, 27 July 2009 introduced some new norms for the comprehensive risk management system for the equity markets in the cash segment, in a move which would now reduce the margin burden on brokers. Sebi said that in case of a buy transaction in cash market, value at risk (VaR) margins, extreme loss margins and mark to market losses together will not exceed the purchase value of the transaction.
The market was volatile. After a firm start triggered by government sops to stimulate the economy announced after trading hours on Monday, 27 July 2009, the market soon slipped into the red. It cut losses after the RBI's policy announcement at about 11:15 IST. However the intraday recovery proved short lived. The market weakened again. The market bounced back one again in afternoon trade as the RBI kept policy rates at record low levels. The Sensex hit its highest level in more than a month. However, the market failed to sustain higher level and once again slipped into the red later.
The RBI has kept the key rates unchanged and increased the inflation forecast to 5% by end March 2010 from earlier 4%. The central bank raised its inflation forecast, saying an uncertain outlook for monsoon rains could "accentuate" inflation for already-high food prices. The repo rate, at which the central bank lends cash to banks, stays at 4.75%, and the reverse repo rate, at which it absorbs surplus cash from the banking system, stays at 3.25%. Both these rates are at record low level. The statutory liquidity ratio (SLR) was also kept unchanged at 24%.
The RBI also kept the cash reserve ratio (CRR), the amount of funds banks have to keep on deposit with it, unchanged at 5%. The RBI said the deposit growth is seen at 19% adding that there is scope for the banks to cut interest rates. The GDP is expected to grow at 6% in FY 2010, with an upward bias, the central bank said. At the time of the annual monetary policy announcement in April 2009, the central bank had forecast a 6% growth. So, the words 'upward bias' were the addition to that forecast.
RBI said it will maintain an accommodative monetary stance until robust signs of recovery in the economy are visible. The central bank will be ready with a roadmap to reverse the expansionary stance quickly and effectively thereafter. The Reserve Bank of India will have to reverse the expansionary measures to anchor inflation expectations and subdue inflationary pressures while preserving the growth momentum The exit strategy will be modulated in accordance with the evolving macroeconomic developments, the RBI said.
The conduct of monetary policy will continue to condition and contain perception of inflation in the range of 4% to 4.5%. This will be in line with the medium-term objective of 3% inflation consistent with India's broader integration with the global economy, the RBI said.
The central bank said it will actively manage liquidity to avoid government borrowing crowding out private credit demand. RBI also said that government will need to return to a path of fiscal consolidation
Finance Minister Pranab Mukherjee after trading hours on Monday, 28 July 2009 announced tax breaks for industrial park schemes and developers of real estate and road projects to stimulate the economy and lift growth to 8-9 percent by the end of 2010. He announced a 1% subsidy on home loans up to Rs 10 lakh, when the overall cost of the house does not exceed Rs 20 lakh.
In another measure that that could provide a boost to the realty sector the government has allowed developers of housing projects a tax holiday under section 80 IB(10) of the Income Tax Act on profits from projects approved between 1 April 2007 and 31 March 2008. The benefit is subject to a condition that the projects are completed on or before 31 March 2012.
The government has also extended tax holiday to developers of industrial parks by two years until March 2011. A tax holiday for firms engaged in food processing has also been extended. Producers of natural gas from coal-bed methane blocks would also be extended tax breaks.
Annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. India's monsoon rains were 15% above normal in the week to 22 July 2009, the second consecutive week of above-average rainfall after an exceptionally dry patch at the start of the season. Total cumulative monsoon, which runs from June to September, was 19% below average, improving from a 27% deficit in the previous week, the India Meteorological Department said on Thursday, 23 July 2009.
More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
Meanwhile, investor focus may shift from secondary market to the primary market as Adani Power's initial public offer of 30.16 crore shares in the price band Rs 90-100 opened for subscription from today, 28 July 2009. The issue received strong investors response and was subscribed 3.96 times by 16:00 IST. Adani said institutions including T. Rowe Price International Inc. demanded twice as many shares as offered in the so-called anchor investor portion of its initial sale.
The company will raise up to Rs 3,016 crore at the upper end of the price band, making it the second-biggest issue after Reliance Power.
Close on the heels of Adani Power, state-run NHPC is ready to hit the primary market in August to raise Rs 6000 crore. Besides, Oil India and Pipavav Shipyard collectively plan to raise over Rs 2000 crore. Earlier, on 17 July 2009 the government said it is considering a part sale of its shareholding in the telecom monolith Bharat Sanchar Nigam (BSNL) to the public. Currently, the government fully owns BSNL.
The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 891 companies rose 21.9% to Rs 48207 crore on 1.4% fall in sales to Rs 393192 crore in Q1 June 2009 over Q1 June 2008.
But equities may remain volatile ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009. As per reports, rollover of Nifty positions from July 2009 contacts to August 2009 contracts stood at 30%, as of Monday, 27 July 2009.
European markets reversed early gains and were trading marginally lower today, 28 July 2009. Key benchmark indices in UK, Germany and France were down by between 0.04% and 0.45%
Most Asian markets were in green today, 28 July 2009. Key benchmark indices in Hong Kong, Taiwan, Singapore, South Korea, China rose by between 0.13% and 1.62%. Japan's Nikkei 225 index was down marginally by 0.01%
US markets ended modestly higher on Monday, 27 July 2009 led by gains in banking shares after a bout of profit taking in early trade. The Dow Jones industrial average rose 15.27 points, or 0.17%, to 9,108.51. The S&P 500 index rose 2.92 points, or 030%, to 982.18, while the Nasdaq Composite Index rose 1.93 points, or 0.10%, to 1,967.89.
On the economic front, new home sales in June 2009 rose the most in more than eight years. Sales spiked 11% to hit a better-than-expected annualised rate of 3.84 lakh units.
Trading in US index futures showed the Dow could slide 29 points at the opening bell on Tuesday, 28 July 2009.
The BSE 30-share Sensex was down 43.10 points or 0.28% to 15,331.94. The Sensex opened 47.53 points higher at 15,422.57. The Sensex rose 88.42 points at the day's high of 15,463.46 in mid-afternoon trade, its highest level since 12 June 2009. The Sensex lost 134.51 points at the day's low of 15,240.53 in mid-morning trade.
The S&P CNX Nifty was down 8.20 points or 0.18% to 4,564.10. Nifty July 2009 futures were at 4562, at a discount of 2.10 points as compared to the spot closing. Turnover in NSE's futures & options (F&O) segment spurted to Rs 76,854.19 crore from Rs 50,488.19 crore on Monday, 27 July 2009.
The BSE clocked a turnover of Rs 7028 crore, compared to Rs 6063 crore on Monday, 27 July 2009.
The Sensex is up 5684.63 points or 58.92% in calendar year 2009 as on 28 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7171.54 points or 87.88% as on 28 July 2009.
Coming back to today's trade, the market breadth, indicating the overall health of the market, was strong. On BSE, 1718 shares advanced as compared with 957 that declined. 94 shares remained unchanged.
The BSE Mid-Cap index was up 1.13% to 5,531.37 and the BSE Small-Cap index rose 1.68% to 6,245.81. Both these indices outperformed the Sensex
The BSE Realty index (up 4.64%), BSE Capital Goods index (down 0.03%), the BSE Power index (up 0.83%), the BSE TECk index (up 0.03%), the BSE Metal index (up 1.25%), BSE PSU index (up 0.52%), BSE Auto index (up 1.92%), outperformed the Sensex.
The BSE Healthcare index (down 0.60%), BSE FMCG index (up down 1.33%), BSE Consumer Durables index (down 0.82%), the BSE IT index (down 0.74%), the BSE Oil & Gas index (down 0.81%), the BSE Bankex (down 1.22%), underperformed the Sensex.
Among the 30-member Sensex pack, 20 advanced while the rest declined
Most auto stocks gained after the Reserve Bank of India (RBI) kept key policy rates unchanged at their historical low at its quarterly monetary policy review today, 28 July 2009.
India's largest truck market by sales Tata Motors galloped 10.01% to Rs 412.50 after a 3.76% jump in its ADR on Monday, 27 July 2009. It was the top gainer from the Sensex pack. The company reported 57.54% rise in net profit to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008. Analysts had expected a steep fall in net profit due to lower sales volume. The result was announced at the fag end of the trading sessions today, 27 July 2009.
Tata Motors attributed the strong results to continued focus on cost efficiencies, decline in raw material prices and improvement in sales realization
India's largest tractor maker by sales Mahindra & Mahindra advanced 1.23% to Rs 826.15, rebounding from day's low of Rs 812.50. The company will unveil its Q1 June 2009 earnings on 30 July 2009.
India's top small car maker by sales Maruti Suzuki India gained 2.70% to Rs 1407 after striking a record high of Rs 1416.70 in intra-day trade today, 28 July 2009. The stock rebounded sharply from day's low of Rs 1346.60. The company had announced strong Q1 June 2009 results during market hours on 23 July 2009.
India's largest bike manufacturer by sales Hero Honda Motors lost 0.97% ahead of its Q1 June 2009 results on 29 July 2009.
Escorts surged 2.15% after net profit jumped 138.7% to Rs 22.22 crore in on 10.4% rise in net sales to Rs 582 crore in Q3 June 2009 over Q3 June 2008. The company announced the results after market hours on Monday, 27 July 2009.
India's largest power generation company by sales NTPC rose 1.12% after net profit jumped 27.1% to Rs 2193.62 crore on a 25.8% increase in sales to Rs 12002.68 crore in Q1 June 2009 over Q1 June 2008. The result was announced after market hours yesterday, 27 July 2009.
Other power generation firms gained as strong response to the Adani Power initial public offer which opened for subscription from today, 28 July 2009 lifted sentiment for the sector. Reliance Infrastructure (up 3.56%), Tata Power (up 2.45%), Reliance Power (up 0.16%), CESC (up 5.69%), advanced.
Realty stocks gained after the Reserve Bank of India (RBI) kept key policy rates unchanged at their historical low at its quarterly monetary policy review today, 28 July 2009.
DLF (up 3.49%), Unitech (up 8.75%), Housing Development & Infrastructure (up 4.50%), Parsvnath Developers (up 1.68%), and Indiabulls Real Estate (up 1.47%), advanced.
In another measure that that could provide a boost to the realty sector the government has allowed developers of housing projects a tax holiday under section 80 IB(10) of the Income Tax Act on profits from projects approved between 1 April 2007 and 31 March 2008. The benefit is subject to a condition that the projects are completed on or before 31 March 2012.
Housing finance companies rose after the government announced a 1% subsidy on home loans up to Rs 10 lakh, when the overall cost of the house does not exceed Rs 20 lakh.
HDFC (up 0.61%), LIC Housing Finance (up 3.03%), Deewan Housing Finance (up 12.28%), and GIC Housing (up 1.06%), gained
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.58% to Rs 1908, extending yesterday's over 3.78% fall. The fall in the stock materialised after the company posted disappointing Q1 June 2009 results after trading hours on Friday, 24 July 2009. Nevertheless, the stock recovered from day's low of Rs 1891
RIL's net profit fell 11.5% to Rs 3636 crore on a 22.9% decline in sales to Rs 32055 crore in Q1 June 2009 over Q1 June 2008. Reliance Industries (RIL) saw its net profit dip for the third straight quarter, as margins from its refining business halved and the global recession reduced fuel demand. RIL's gross refining margins (GRMs) - the difference between cost of crude oil and the price of refined petroleum products - came down 52.22% to $7.5 per barrel in Q1 June 2009 compared with $15.7 per barrel in Q1 June 2008.
Reliance Natural Resources (RNRL) chairman Anil Ambani on Tuesday accused the Petroleum Ministry of being biased in the legal dispute with brother Mukesh Ambani-led Reliance Industries (RIL) over the price of natural gas from the Krishna-Godavari basin. Addressing shareholders of the company, he also said the government would not lose a single rupee even if the gas from RIL's fields off the Andhra Pradesh coast were to be supplied to his company at the originally contracted price of $2.34 per unit.
Addressing shareholders at the RNRL's Annual General Meeting, Anil Ambani asked the Oil Ministry to cancel the Production Sharing Contract with RIL if it was really aggrieved and not challenge third party agreements. Giving details of the global gas scenario, he said the price of the industrial fuel had crashed 80% and the gas price of $4.2 per mmBtu (fixed by the Government) was "exorbitant" and against public interest.
Last month, the Bombay High Court had asked Reliance Industries to supply 28 million units of gas to Reliance Natural Resources for 17 years at $2.34 per unit, after assigning 12 million units to the state-run power utility NTPC. Reliance Industries challenged the verdict in the Supreme Court, which heard the case on 20 July 2009 and fixed 1 September 2009 as the next date of hearing. It also asked all the parties to file their replies on the government position on the matter by then.
BPCL rose 2.75% to Rs 462.80 after the company posted net profit of Rs 614.12 crore on 33.34% fall in total income to Rs 26,195.60 crore in Q1 June 2009 over Q1 June 2008. The company announced the results during trading hours today, 28 July 2009.
India's largest FMCG company by sales Hindustan Unilever slumped 6.72% to Rs 278.55, retracing sharply after striking a 52-week high of Rs 306 in intra-day trade on the BSE. The stock tanked after net profit declined 2.68% to Rs 543.19 crore on a 5.06% increase in total income to Rs 4536.17 crore in Q1 June 2009 over Q1 June 2008. The results were declared in late trade today, 28 July 2009. It was the top loser from the Sensex pack
Bank stocks were mixed after the Reserve Bank of India's (RBI) in its quarterly monetary policy review today, 28 July 2009, raised inflation forecast. India's largest private sector bank by net profit ICICI Bank was down 2.49%. The bank's net profit rose 20.63% to Rs 878.22 crore on a 9.61% decline in total income to Rs 7133.44 crore in Q1 June 2009 over Q1 June 2008. The bank reported its earnings on Saturday, 25 July 2009.
India's biggest bank in terms of branch network State Bank of India (SBI) fell 1.90%. The bank's chairman today, 28 July 2009 said that credit growth is expected to pick up in second half of the year. The state-run bank reduced interest rates on deposits by 25-50 basis points (a basis point equals one-hundredth of a percentage point) with effect from Monday, 27 July 2009.
However, India's second largest private sector bank in terms of operating income HDFC Bank rose 0.52% to Rs 1442. The stock slipped to day's low of Rs 1400 mirroring a 1.9% fall in its American depository receipt (ADR) on Monday, 27 July 2009.
Karnataka Bank fell 1.55% after the bank's gross non-performing assets rose 7.30% to Rs 447.12 crore in Q1 June 2009 over Q1 June 2008. Karnataka Bank's net profit surged 93.5% to Rs 40.06 crore on 20.1% rise in total income to Rs 609.67 crore in Q1 June 2009 over Q1 June 2008. The bank announced the results after market hours on Monday, 27 July 2009.
Kotak Mahindra Bank declined 1.63% after the bank's consolidated gross non-performing assets surged 65.83% to Rs 1084.48 crore in Q1 June 2009 over Q1 June 2008. The bank's consolidated net profit surged 71.70% to Rs 257.29 crore on 57.69% rise in total income to Rs 2,345.26 crore in Q1 June 2009 over Q1 June 2008.
Karur Vysya Bank jumped 6.19% after net profit galloped 131.02% to Rs 70.53 crore on 29.49% rise in total income to Rs 487.37 crore in Q1 June 2009 over Q1 June 2008. The bank declared its results during trading hours today, 28 July 2009.
Diversified major Grasim Industries slipped 2.18% despite 61% rise in net profit to Rs 1080 crore on 15% rise in net revenue to Rs 5123 crore in Q1 June 2009 over Q1 June 2008. The results were announced during trading hours today.
IT stocks were mixed, recovering from early lows. India's second largest IT firm by sales Infosys lost 1.50% to Rs 1995, off day's low of Rs 1968.25. India's largest IT exporter by sales TCS rose 0.06% to Rs 480.50, after slipping to day's low of Rs 472. On 17 July 2009, TCS announced Q1 results that beat market expectations. India's third largest IT exporter by sales Wipro gained 0.82% to Rs 463.50, after touching day's low of Rs 452. On 22 July 2009, Wipro announced better-than-expected Q1 results.
Telecom pivotals advanced ahead of meeting of a Group of Ministers (GoM) to decide on the base price for 3G spectrum on 31 July 2009.
India's largest cellular services provider by sales Bharti Airtel rose 0.31%. As per reports, Bharti Airtel and South Africa's MTN may extend by about four weeks their 31 July 2009 deadline for talks to agree on a merger.
Bharti and MTN have been in exclusive talks that could lead to a merger creating the world's No. 3 wireless group with more than 200 million subscribers and combined revenue of $20 billion.
India's second largest cellular services provider by sales Reliance Communications rose 2.73%.
The GoM is set up to look into matters relating to pricing of spectrum and number of operators to be allowed in each telecom circle. The finance ministry had proposed a base price of Rs 4,040 crore for 3G spectrum, whereas the Department of Telecom (DoT) suggested a price of Rs 3,540 crore. While presenting the Union Budget, the finance minister, Mr Pranab Mukherjee, said Rs 35,000 crore was expected to be raised from the auction.
Metal stocks were mixed with some stocks correcting after recent strong gains. LMEX, a gauge of six metals traded on the London Metal Exchange, advanced 1.25% on Monday, 27 July 2009.
Tata Steel (up 2.22%), Sterlite Industries India (up 0.67%), Steel Authority of India (up 1.42%), and Hindalco (up 0.43%), gained. National Aluminium Company (down 0.87%), Jindal Steel & Power (down 2.66%), Hindustan Zinc (down 0.36%), declined.
Unitech was the top traded counter on BSE with turnover of Rs 380.29 crore followed by DLF (Rs 239.78 crore), Reliance Industries (Rs 231.56 crore), Tata Steel (Rs 217.23 crore), and HDIL (Rs 199.04 crore).
Unitech was also the volume topper on BSE clocking volume of 4.06 crore shares followed by Ispat Industries (1.68 crore shares), Reliance Natural Resources (1.47 crore shares), Suzlon Energy (1.23 crore shares) and IFCI (1.09 crore shares)
Tyre shares extended gains for the second running day on fresh buying following robust earnings reported by MRF, Apollo Tyres and JK Tyres.
MRF (up 3.93%), Goodyear India (up 1.89%), Balkrishna Industries (up 3.11%), and TVS Shrichakra (up 5%), gained.
On 27 July 2009, MRF reported a 294% jump in net profit to Rs 125.70 crore on 12.4% rise in net sales to Rs 1433.55 crore in Q3 June 2009 over Q3 June 2008. JK Tyre reported a two fold spurt in net profit, while Apollo Tyres posted a 95% jump in net profit in Q1 June 2009 over Q1 June 2008.
Rashtriya Chemicals & Fertilizers surged 7.01% after net profit soared 65.5% to Rs 31.55 crore on 46% fall in net sales to Rs 843 crore in Q1 June 2009 over Q1 June 2008. The company announced the results after trading hours on Monday, 27 July 2009.
Cadila Healthcare soared 10.59% to Rs 444.40. The company, during market hours on Monday, 27 July 2009, reported a 120.3% spurt in net profit to Rs 122.56 crore on 8.4% rise in sales to Rs 465.27 crore in Q1 June 2009 over Q1 June 2008. The stock had risen 3.26% to Rs 401.85 on Monday boosted by the Q1 numbers.
Shree Renuka Sugars climbed 8.83% to Rs 167.05. The company, during market hours on 21 July 2009, reported a 165.7% surge in net profit to Rs 61.10 crore on a 17.3% increase in sales to Rs 715.50 crore in Q3 June 2009 over Q3 June 2008.
Punj Lloyd lost 2.10% despite 13.69% rise in consolidated net profit to Rs 127.16 crore on 12.07% rise in consolidated total income rose to Rs 2,979.04 crore Q1 June 2009 over Q1 June 2008. The company declared its results after market hours on Monday, 27 July 2009.
Real estate stocks may move up
Nine real estate developers rose 1.62% to 4.19% after Finance Minister Pranab Mukherjee announced sops for the housing sector on Monday, 27 July 2009.
At 9:58 IST, the BSE Realty sector was up 2.16% at 3,993.16. It outperformed the Sensex, which was up 0.28% at 15,418.24.
Mahindra Lifespace Developers (up 4.19%), Ansal Properties & Infrastructure (up 3.83%), Parsvnath Developers (up 2.89%), Omaxe (up 2.86%), Unitech (up 2.33%), DLF (up 2.26%), Housing Development and Infrastructure (up 2.02%), Phoenix Mills (up 1.97%), and Sobha Developers (up 1.62%), rose.
The BSE Realty had outperformed the market over the past one month till 27 July 2009, soaring 16.12% as compared to the Sensex's 4.13% rise. It had also outperformed the market in the past one quarter, spurting 77.50% as against the Sensex rise of 35.20%.
To provide stimulus to the housing sector, tax holiday has been extended to real estate developers on profits derived from housing projects approved between 1 April 2007 and 31 March 2008, if such projects are completed on or before 31 March 2012.
Mr Mukherjee also proposed an interest subsidy of 1% for home loans of upto Rs 10 lakh availed for houses worth upto Rs 20 lakh. The minister earmarked Rs 1,000 crore for this purpose and said it will also benefit the lower and middle income housing sector. The interest subsidy will be routed through scheduled commercial banks and housing finance companies registered with the National Housing Bank.
Grey Market Premiums - NHPC, Adani Power, Raj Oil Mills
Excel Infoways Ltd. 85 5 to 7
Raj Oil Mills Ltd. 100 to 120 Discount
Adani Power 90 to 100 8 to 10
NHPC 28 to 33 (Approximate) 12 to 13
Pre Session Commentary - July 28 2009
Today domestic markets are likely to open negative due to cautiousness ahead of RBI’s monetary policy to be announced today. US markets closed flat yesterday and therefore majority of Asian markets have also opened in a subdued note. Any surprise or disappointment from RBI’s quarterly policy review can hit hard on the market sentiments. One may witness a lot of cautiousness prevailing across the broader level before the monetary policy review and rate sensitive sectors could be the cheer leaders of the day.
On Monday, domestic markets closed flat after a range bound session. Investors took calculative steps ahead of F&O expiry on 30th July 2009 and RBI’s quarterly policy review tomorrow. Earlier during initial trading, market exhibited gains on positive global cues as Asian market ended in with good gains and European markets were in green. However rally was short lived and selling pressure dragged the domestic bourses lower on the first trading day of the week. Meanwhile, sharp drop in revenues of Reliance Industries due to lower refinery margins had contributed to the selling pressure to some extent. From the sectoral front FMCG, Realty, Power and Metal led the markets with gains of 3.64%, 3.11%, 2.29% and 1.93% respectively. There was phenomenal bottom fishing as BSE Mid Cap and Small Cap index gained by 1.63% and 1.53% respectively. Domestic markets are likely to trade range bound today.
The BSE Sensex closed flat at 15,375.04 and NSE Nifty also ended flat at 4,572.30. BSE Mid Caps and Small Caps closed up by 87.69 points and 92.54 points at 5,469.50 and 6,142.74 respectively. The BSE Sensex touched intraday high of 15,463.09 and intraday low of 15,228.46.
On Monday, the US stock markets closed flat. The banking stocks were in the limelight and provided a lot of support and leadership in the market. Many stocks opened with losses during the early trading hours; however news of new home sales data helped stocks record respectable gains. The new home sales during June inclined by 11 per cent to record a better-than-expected annualized rate of 384,000. With new home sales coming in at their highest rate since November, the supply of unsold homes moved lower to 8.8 months from 10.2 months in May. In the banking space The Wall Street Journal stated that second quarter lending was down nearly 3 per cent among 15 large U.S. banks suggested that many banks remain cautious about putting their money to work. In the macro economic scenario Bernanke stated that the jobless rate will remain high even after the U.S. exits recession. US light crude oil futures for September delivery closed at $68.32 per barrel up by 0.4% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 15.27 points at 9,108.51, NASDAQ index inclined by 1.93 points to 1,967.89 and the S&P 500 (SPX) closed up by 2.92 points at 982.18.
Today major stock markets in Asia are trading mixed. Hang Seng is up by 119.03 points at 20,370.65. Shanghai Composite is low by 11.573 points at 3,423.639. Japan''s Nikkei is trading down by 37.25 points at 10,051.41. Strait Times is up by 18.78 points at 2,595.44.
Indian ADRs ended mixed on Monday. However, gainers outnumbered the losers. In the IT space, Satyam Computers was up 3.9%, Infosys was up 0.12%, Wipro was up 0.57%, while Patni Computers was down 1.58%. In the telecom space, MTNL was up 6.91% while Tata Communication was down 0.63%. In the banking space, ICICI Bank was down 0.73% and HDFC Bank was down 1.9%. In other sectors, Tata Motors was up 3.76%, Dr Reddy''s Labs was up 1.02% and Sterlite Industries was up 0.38%.
The FIIs on Monday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 3,263.90 Crore, while the gross equity sold stood at Rs 2,213.20 Crore and gross debt purchased stood at Rs 242.10 Crore, while gross debt sold stood at Rs 457.90 Crore. The net investment of equity reported was Rs 1,050.60 Crore and net debt was Rs (215.80) Crore.
On Monday, the partially convertible rupee ended at Rs 48.16/17, 0.1% stronger than its previous close at 48.22/23. The rupee gained strength despite lack of direction from the local domestic stock markets and also month end dollar demand from importers.
On BSE, total number of shares traded were 43.63 Crore and total turnover stood at Rs 6,063.49 Crore. On NSE, total number of shares traded were 95.23 Crore and total turnover was Rs 19,164.1 Crore.
Top traded volumes on NSE Nifty – Suzlon Energy with total volume traded 59873665 shares, followed by Unitech with 50732864, DLF with 21199776, Tata Steel with 12102620 and HUL with 11347035 shares.
On NSE Future and Options, total number of contracts traded in index futures was 474417 with a total turnover of Rs 10,471.27 Crore. Along with this total number of contracts traded in stock futures were 623987 with a total turnover of Rs 19,245.66 crore. Total numbers of contracts for index options were 842623 with a total turnover of Rs 19,164.38 Crore and total numbers of contracts for stock options were 50988 and notional turnover was Rs 1,606.88 Crore.
Today, Nifty would have a support at 4,510 and resistance at 4,634 and BSE Sensex has support at 15,145 and resistance at 15,568.
Market on a zigzag road, but upmove continues
Marginal drop European market dampened the sentiment on Dalal Street yesterday but it was more related to the fears of overvaluation. The market is taking cues from international markets and the mixed global cues likely to weigh on the local indices in the morning trades. However, the prevailing bullish trend may add to the market advantage and help the sentiment turn positive. Among the domestic indices, the Nifty could test 4510 and below this level next support is in 4460-4405 range, while on the upside it could edge higher to 4620. The Sensex has a likely support at 15200 and may face resistance at 15500.
Among the Us indices the Dow industrials closed higher Monday, at the end of a choppy session on Wall Street in which investors weighed better-than-expected results with some wariness after a two-week rally. While the Dow Jones gained over 15 points at 9109, the Nasdaq moved up by 2 points at 1968.
Indian floats trading on the US bourses. had a firm outing on Monday, the gainers were, Rediff gaining over 13% while MTNL, Tata Motors and Satyam gained above 3-6% each. Whle Infosys, Wipro and Dr Reddy gained marginally. However, Patni Computers & HDFC Bank slipped over 1% each and VSNL and ICICI Bank dropped around marginally.
Crude oil prices are moving up gradually, while the Nymex light crude oil for September delivery rose by 33 cents to close at $68.38 a barrel. In the commodity segment, the Comex gold for December series dropped by 40 cents to settle at $956 an ounce.
Turnover dips
Nifty July 2009 futures at premium
Nifty July 2009 futures were at 4576.30, at a premium of 4 points as compared to the spot closing of 4572.30. Turnover in NSE's futures & options (F&O) segment was Rs 50,488.19 crore, sharply lower than Rs 72,581.23 crore on Friday, 24 July 2009.
The near-month July 2009 F&O contract will expire on Thursday, 30 July 2009.
Tata Steel July 2009 futures were at discount at 455.85 compared to the spot closing of 458.80.
JSW Steel July 2009 futures were at discount at 680 compared to the spot closing of 683.60.
Jaiprakash Associates July 2009 futures were near spot price at 240.50 compared to the spot closing of 240.40.
In the cash market, the S&P CNX Nifty rose 3.75 points or 0.08% at 4572.30.
Market seen opening firm; RBI's quarterly monetary policy review meet eyed
The market may open on a firm note following mixed global cues. The SGX Nifty futures for July 2009 expiry rose 8.5 points in Singapore. However volatility may be zoom ahead of the Reserve Bank of India's (RBI) quarterly monetary policy review meet today, 28 July 2009. Companies scheduled to announce quarter ended June 2009 results will be in spotlight.
The RBI has revised its FY10 gross domestic product (GDP) growth forecast to 6.5% versus 5.7% it had forecast earlier. In its first quarter review 2009-10 report, a background to the first quarter review of monetary policy 2009-10, which is scheduled be announced today, 28 July 2009, the central bank indicated average inflation in the fourth quarter of FY10 to be at 5.4%.
The Finance Minister Pranab Mukherjee in an address to the Parliament on Monday, 27 July 2009, said India can go back to 8–9% gross domestic product (GDP) growth. For the target to be achieved, the country needed at least 4% farm growth, the minister said. Pointing out that the various stimuli packages the government introduced last year cost the state Rs 2.14 lakh crore, Mukherjee added that the government would use more measures to boost the GDP growth.
The FM also announced a slew of changes of tax measures that included a 1% subsidy on home loans up to Rs 10 lakh, when the overall cost of the house does not exceed Rs 20 lakh.
Meanwhile, bankers expect the Reserve Bank of India (RBI) to maintain a status-quo in its key rates in its quarterly policy meet on Tuesday, 28 July 2009 following surplus liquidity in the banking system and low demand for credit. The central bank is also likely to lay out a more clear roadmap to conduct the government borrowing programme in a smooth manner and may hike the GDP and inflation forecast for the year ending March 2010 (FY 2010).
Earlier, the Reserve Bank of India (RBI) had cut the repo rate, or its key short-term lending rate, by 425 basis points to 4.75% in six steps since October 2008 as it tried to guard a slowing economy against the global financial crisis. The central bank also slashed the reverse-repo rate by 275 basis points since early December 2008 and brought down the cash reserve requirement by 400 basis points to 5% since early October 2008 to keep credit flowing.
Hindustan Unilever, Bajaj Hindusthan, GMR Infra, GVK Power, Kotak Mahindra Bank, Mundra Port, Neyveli Lignite, REC, Tata Tea, BPCL and Grasim, among others will announce their June 2009 quarterly result today, 28 July 2009. The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 825 companies rose 16% to Rs 45525 crore on 2.5% growth in sales to Rs 351504 crore in Q1 June 2009 over Q1 June 2008.
Equities may remain volatile this week as investors rollover positions from July 2009 contacts to August 2009 contracts ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009.
Asian markets were trading mixed today, 28 July 2009. Key benchmark indices in Hong Kong, Taiwan, Singapore, rose by between 0.42% and 1.47%. Indices in South Korea, China, and Japan were down by between 0.10% and 0.27%.
US markets ended modestly higher on Monday, 27 July 2009 led by gains in banking shares after a bout of profit taking in early trade. The Dow Jones industrial average rose 15.27 points, or 0.2%, to 9,108.51. The S&P 500 index rose 2.92 points, or 0.3%, to 982.18, while the Nasdaq Composite Index rose 1.93 points, or 0.1%, to 1,967.89.
On the economic front, the new home sales in June 2009 rose the most in more than eight years. Sales spiked 11% to hit a better-than-expected annualised rate of 3.84 lakh units.
Back home, as per the provisional figures on the NSE, foreign institutional investors (FIIs) bought shares worth Rs 439.54 crore on Monday, 27 July 2009 while domestic institutional investors sold shares worth Rs 278.97 crore.
Annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. India's monsoon rains were 15% above normal in the week to 22 July 2009, the second consecutive week of above-average rainfall after an exceptionally dry patch at the start of the season. Total cumulative monsoon, which runs from June to September, was 19% below average, improving from a 27% deficit in the previous week, the India Meteorological Department said on on Thursday, 23 July 2009.
More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
US stocks manage a late turnaround
Indices register little gains led by the banking stocks
With the help of a late turnaround, US stocks ended modestly higher on Monday, 27 July, 2009. US stocks made a weak start today. But a stronger than expected housing sector report pushed stocks in the green for a very brief period of time. But indices soon slipped back into the red. In line earning reports from a couple of Dow components failed to take indices back in then green. But with the rebound of financial sector, mainly from banks, stocks managed a rebound.
The Dow Jones Industrial Average ended higher by 15.2 points at 9,108.3. The Nasdaq Composite Index, ended higher by 1.9 points at 1,967.6. S&P 500 ended higher by 2.9 points at 982.
Seven of the ten sectors ended in the green today led by the financial sector. The technology sector remained the main laggard.
Among economic reports for the day, The Commerce Department reported on Monday, 27 July, 2009 that sales of new homes in the U.S. in June rose by the biggest amount since November 2008, climbing by 11% to a seasonally adjusted annual rate of 384,000.
The report was stronger than expected. Market was expecting a modest increase in new-home sales to 355,000. The report detailed that sales rose by a revised 2.4% in May, thus marking the third consecutive month of gains. Sales rose 1.8% in April, but fell 6.2% in March. Over the past year, sales are down 21.3%.
Among major earning reports for the day, in-line earnings came from Dow components Verizon and Honeywell. A conservative outlook came from Honeywell. In the healthcare sector, Aetna fell short of earnings expectations and issued downside guidance.
Crude prices ended little higher on Monday, 27 July, 2009. Prices witnessed volatile trading today but managed to eke out gains finally. Prices were boosted by better than expected housing report. On Monday, crude-oil futures for light sweet crude for September delivery closed at $68.38/barrel (higher by $0.33 or 0.48%). Trading was quite volatile today. Prices rose to a high of $68.99 and fell to a low of $67.6 during the day. Last week, crude ended higher by 7.1%.
Among other products in the sector, August reformulated gasoline gained 1.88 cents to $1.9347 a gallon and August heating oil rose 1.53 cents to $1.7966 a gallon. August natural-gas futures fell 9.10 cents to $3.604 per million British thermal units.
Precious metal prices ended little higher on Monday, 27 July, 2009. It was a day of volatile trading for precious metals as prices swung between gains and losses. The dollar managed to gain back some of its lost ground. On Monday, gold for August delivery ended at $953.5, higher by $0.40 (0.04%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 1.6%. Year to date, gold prices are higher by 7.44%.
Indian ADRs ended mixed today. While the bank ADRs ended in the red, the technology ADRs managed little gains. But Rediff and Sify were the main winners today soaring 13.9% and 10.9% respectively.
Tomorrow will be another busy day of for earnings reports. In economic data tomorrow, the S&P/Case-Shiller Home Price Index for May is due 9:00ET followed by July consumer confidence at 10:00ET.
Precious metals end marginally higher
Gold and silver witness little gains after volatile trading
Precious metal prices ended little higher on Monday, 27 July, 2009. It was a day of volatile trading for precious metals as prices swung between gains and losses. The dollar managed to gain back some of its lost ground.
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 $953.5, higher by $0.40 (0.04%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 1.6%. Year to date, gold prices are higher by 7.44%.
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 11.5 cents (0.9%) at $13.99 an ounce. Last week, silver ended higher by 3.5%.
Silver ended 13% down for the month of June, 2009. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. For second quarter, silver rose 4.5%. Year to date, silver has climbed 23.5% this year. For 2008, silver had lost 24%.
In the currency market on Monday, the dollar index, a six-currency gauge of the greenback's value, gained back some of its lost ground and rose mildly higher.
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 41 (0.27%) at Rs 14,941 per 10 grams. Prices rose to a high of Rs 14,972 per 10 grams and fell to a low of Rs 14,897 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 200 (0.88%) higher at Rs 22,727/Kg. Prices opened at Rs 22,550/kg and rose to a high of Rs 22,820/Kg during the day's trading.
Volatile crude ends higher
Strong housing reports boosts crude prices
Crude prices ended little higher on Monday, 27 July, 2009. Prices witnessed volatile trading today but managed to eke out gains finally. Prices were boosted by better than expected housing report.
On Monday, crude-oil futures for light sweet crude for September delivery closed at $68.38/barrel (higher by $0.33 or 0.48%). Trading was quite volatile today. Prices rose to a high of $68.99 and fell to a low of $67.6 during the day. Last week, crude ended higher by 7.1%.
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 52% since then. In July, 2009, it has dropped by 2.8% till date. Year to date, in 2009, crude prices are higher by 43.5%.
The Commerce Department reported on Monday, 27 July, 2009 that sales of new homes in the U.S. in June rose by the biggest amount since November 2008, climbing by 11% to a seasonally adjusted annual rate of 384,000. The report was stronger than expected. Market was expecting a modest increase in new-home sales to 355,000. The report detailed that sales rose by a revised 2.4% in May, thus marking the third consecutive month of gains. Sales rose 1.8% in April, but fell 6.2% in March. Over the past year, sales are down 21.3%.
Also at the Nymex on Monday, August reformulated gasoline gained 1.88 cents to $1.9347 a gallon and August heating oil rose 1.53 cents to $1.7966 a gallon.
August natural-gas futures fell 9.10 cents to $3.604 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 6 (0.18%) at Rs 3,293/barrel. Natural gas for August delivery closed at Rs 183.9/mmbtu, lower by Rs 2.3/mmbtu (1.23%).
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