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Wednesday, July 29, 2009
BSE Bulk Deals to Watch - July 29 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
29/7/2009 523204 ABAN OFFSHO CHANDARANA INTERMIDIARY BROKERS PVT LTD B 248695 989.74
29/7/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD B 393826 994.22
29/7/2009 523204 ABAN OFFSHO CHANDARANA INTERMIDIARY BROKERS PVT LTD S 237830 989.35
29/7/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD S 393826 994.73
29/7/2009 532475 APTECH LTD INDIA LONG TERM OPPORTUNITY MASTER FUND B 500000 174.80
29/7/2009 532475 APTECH LTD INDIA CAPITAL PTE LIMITED - INDEA ABSOLUTE RETURN FUND S 500000 174.80
29/7/2009 532995 AVON CORP S V ENTERPRISES B 1646987 11.72
29/7/2009 532995 AVON CORP BP FINTRADE PRIVATE LIMITED B 338055 11.99
29/7/2009 532995 AVON CORP S V ENTERPRISES S 1656504 11.97
29/7/2009 532995 AVON CORP BP FINTRADE PRIVATE LIMITED S 335055 11.94
29/7/2009 532989 BAFNA PHARMA DILIP KUMAR S 97000 22.15
29/7/2009 500038 BALRAMPUR C* JANUS WORLD FUND PLC - A/C GLOBAL TECHNOLOGY FUND S 1989875 113.21
29/7/2009 511664 BGIL FL TEC JINESH BHATT S 51599 16.05
29/7/2009 590076 CAMSON BIO ANGEL INFIN PRIVATE LIMITED B 77502 57.85
29/7/2009 590076 CAMSON BIO Naman Securities & Finance Pvt. Ltd. B 51515 56.87
29/7/2009 590076 CAMSON BIO JMP SECURITIES PVT LTD B 65196 57.04
29/7/2009 590076 CAMSON BIO ARYA INVESTMENTS B 50000 57.85
29/7/2009 590076 CAMSON BIO BP FINTRADE PRIVATE LIMITED B 141565 56.72
29/7/2009 590076 CAMSON BIO ANGEL INFIN PRIVATE LIMITED S 82229 57.85
29/7/2009 590076 CAMSON BIO Naman Securities & Finance Pvt. Ltd. S 51515 57.85
29/7/2009 590076 CAMSON BIO ARYA INVESTMENTS S 70000 57.85
29/7/2009 590076 CAMSON BIO BP FINTRADE PRIVATE LIMITED S 141565 57.85
29/7/2009 500068 DISA INDIA INDIA DEEP VALUE FUND S 9502 1608.41
29/7/2009 526285 DIVYAJYO IND VIJAY KUMAR NYATI B 50000 8.75
29/7/2009 526285 DIVYAJYO IND ANIL AGRAWAL S 50000 8.75
29/7/2009 590080 EASTERN GAS KAMLESH NAHAR S 56000 55.40
29/7/2009 526705 ELEG MAR GRA VIDHYA EQUIRESEARCH PVT LTD B 53200 29.70
29/7/2009 526705 ELEG MAR GRA SAUMIK KETAN DOSHI B 23000 29.70
29/7/2009 526705 ELEG MAR GRA PIYUSH PRAFUL AVALANI S 23000 29.70
29/7/2009 526705 ELEG MAR GRA PIYUSH PRAFULCHANDRA AVLANI S 53192 29.70
29/7/2009 530571 EXPLICIT FIN MAYUR BAHETI B 16600 5.27
29/7/2009 532786 GREAT OFFSH ABG SHIPYARD LTD B 1456994 449.99
29/7/2009 532786 GREAT OFFSH SUNDARAMBNPPARIBASMF A/C SUND.BNP PARI.SELECT THEMATICFUNDSENERGY S 445049 450.00
29/7/2009 532786 GREAT OFFSH DSP BLACKROCK INDIA T.I.G.E.R. FUND S 559485 450.00
29/7/2009 509684 INDIA FOILS SHILPA MILIND DESAI S 150000 15.90
29/7/2009 524826 JUPITER BIOS MACQUARIE BANK LIMITED S 123000 66.60
29/7/2009 530255 KAY POW PAP KAILASH CHAND GUPTA B 96000 6.23
29/7/2009 530255 KAY POW PAP B.S.KHANDELWAL B 86671 6.33
29/7/2009 530255 KAY POW PAP JOLLY GUPTA S 65000 6.24
29/7/2009 530255 KAY POW PAP SUNDER DASS AGARWAL S 67215 6.06
29/7/2009 530357 KBS CAP MANA KALAVATI SURESH KANAKIA B 23100 23.03
29/7/2009 506528 KELTECH ENRG CHANCHAL DEVI LODHA B 13122 171.68
29/7/2009 531602 KOFF BR PICT KISHORE B CHAUHAN B 350000 4.06
29/7/2009 532907 MAYTAS INFRA BP FINTRADE PRIVATE LIMITED S 309318 93.29
29/7/2009 533080 MOLDTK PLA SEEPRA JAJOO S 40992 32.39
29/7/2009 521080 PASARI SPIN CHANDRASHEKAR JAYKISHAN THANVI B 100000 4.61
29/7/2009 521080 PASARI SPIN XITIJ INVESTMENTS S 100000 4.61
29/7/2009 502448 ROLLATAINERS WLD INVESTMENTS P.LTD. S 100000 161.50
29/7/2009 517534 S.V.ELECTRIC KIRAN SUTTAMCHAND B 36800 4.29
29/7/2009 517534 S.V.ELECTRIC UJIWAL BHORKAR S 40000 4.29
29/7/2009 524446 SABE ORG GUJ HITESH SHASHIKANT JHAVERI S 190270 36.97
29/7/2009 530611 STURDY INDS KINOFOLK INDUSTRIES LTD. B 100000 34.47
29/7/2009 500407 SWARAJ ENGIN DERIVE TRADING PVT LTD B 50000 305.00
29/7/2009 500407 SWARAJ ENGIN RELIANCE CAPITAL TRUSTEE CO. LTD A/C RELIANCE TAX SAVER(ELSS) FU S 60000 305.25
NSE Bulk Deals To Watch - July 29 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
29-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,392077,993.65,-
29-JUL-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,BUY,255563,985.43,-
29-JUL-2009,ABAN,Aban Offshore Ltd.,PRB SECURITIES PRIVATE LTD.,BUY,215081,991.73,-
29-JUL-2009,ABAN,Aban Offshore Ltd.,SMC GLOBAL SECURITIES LTD.,BUY,211636,986.25,-
29-JUL-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,BUY,108456,50.31,-
29-JUL-2009,FSL,Firstsource Solutions Lim,AMBIT SECURITIES BROKING PVT. LTD.,BUY,2474684,26.24,-
29-JUL-2009,GAMMONIND,Gammon India Ltd.,BIRLA SUN LIFE INSURANCE COMPANY LIMITED,BUY,500000,144.90,-
29-JUL-2009,GTOFFSHORE,Great Offshore Limited,ABG SHIPYARD LTD,BUY,469727,449.97,-
29-JUL-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,4141476,50.64,-
29-JUL-2009,INDIAINFO,India Infoline Limited,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,12965096,124.00,-
29-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,9367507,22.40,-
29-JUL-2009,MAYTASINFR,Maytas Infra Limited,BP FINTRADE PRIVATE LIMITED,BUY,375797,93.66,-
29-JUL-2009,MAYTASINFR,Maytas Infra Limited,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,BUY,347309,93.68,-
29-JUL-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1108820,18.82,-
29-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,395677,994.39,-
29-JUL-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,SELL,255563,985.88,-
29-JUL-2009,ABAN,Aban Offshore Ltd.,PRB SECURITIES PRIVATE LTD.,SELL,205881,992.77,-
29-JUL-2009,ABAN,Aban Offshore Ltd.,SMC GLOBAL SECURITIES LTD.,SELL,183236,984.21,-
29-JUL-2009,BALRAMCHIN,Balrampur Chini Mills,JANUS GLOBAL TECHNOLOGIES FUND,SELL,2900000,113.13,-
29-JUL-2009,BANKRAJAS,Bank Of Rajasthan Ltd,Copthall Mauritius Investment Ltd,SELL,816076,58.53,-
29-JUL-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,SELL,102420,51.78,-
29-JUL-2009,FSL,Firstsource Solutions Lim,AMBIT SECURITIES BROKING PVT. LTD.,SELL,2520309,26.36,-
29-JUL-2009,GAMMONIND,Gammon India Ltd.,HDFC STANDARD LIFE INSURANCE COMPANY LIMITED,SELL,495802,145.00,-
29-JUL-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,4141476,50.57,-
29-JUL-2009,INDIAINFO,India Infoline Limited,ORIENT GLOBAL CINNAMON CAPITAL LIMITED,SELL,1716155,124.00,-
29-JUL-2009,INDIAINFO,India Infoline Limited,ORIENT GLOBAL TAMARIND FUND PTE. LIMITED,SELL,18500000,124.01,-
29-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,9638153,22.44,-
29-JUL-2009,MAYTASINFR,Maytas Infra Limited,BP FINTRADE PRIVATE LIMITED,SELL,378277,93.29,-
29-JUL-2009,MAYTASINFR,Maytas Infra Limited,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,SELL,348667,93.39,-
29-JUL-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1085595,18.81,-
Post Session Commentary - July 29 2009
Indian market closed on negative note following weak cues from Chinese market. The Chinese government has slashed gasoline prices, which led heavy selling into metal, energy and realty stocks in China. Consequently, China''s Shanghai index slumped over 7% during the trading. Market exhibited volatility on expiry of July futures and options contracts tomorrow, 30th July 2009. In addition, weak US index futures also took beating on the bourses. However, market minimized its losses during final trading hours on firm trading in European markets. Meanwhile, the government hopes to maintain a growth rate of the economy at 6.7% in 2009-10, same as the previous year despite the global economic slowdown. Finance Minister, Mr Pranab Mukherjee hoped that the stimulus provided both in terms of financial concessions as well as fiscal policy and the monetary measures announced by the RBI, will have its desired impact. The BSE Sensex ended below 15,200 level and NSE Nifty closed below 4,550 mark.
Market opened lower tracking mixed cues from the markets all over the world. Majority of Asian markets were down in early trading and the US stocks markets ended in mixed on Tuesday after trading in negative territory for almost all the session. The investor’s sentiments were dampened in the early trade on news that the consumer confidence data for the month of July came in worse-than-expected as it came in at 46.6 marking its second straight decline. Further, Indian benchmark continued to trade with volatility ahead of the derivative contracts expiry for the July series. However, market managed to recover and touched the green zone on some buying in key stocks, before once again losing ground. Market slipped sharply lower during mid session on huge fall in Chinese stocks. Finally, market ended lower on continued selling pressure over the counters. From the sectoral front, Realty, Consumer Durable, Metal, FMCG, Capital Goods and Pharma stocks contributed to most of the selling. BSE Mid Cap and BSE Small Cap indices also remained under pressure. However, IT and Oil & Gas stocks witnessed buying from these baskets.
Among the Sensex pack 23 stocks ended in red territory and 7 in green. The market breadth indicating the overall health of the market remained negative as 1558 stocks closed in red while 1089 stocks closed in green and 77 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 158.48 points or (1.03%) at 15,173.46 and NSE Nifty ended down by 50.60 points or (1.11%) at 4,513.50. BSE Mid Caps and Small Caps closed with losses 54.28 and 91.06 points at 5,477.09 and 6,154.75 respectively. The BSE Sensex touched intraday high of 15,379.43 and intraday low of 14,888.41.
Losers from the BSE Sensex pack are DLF Ltd (6.58%), Tata Steel (5.77%), Sterlite Industries (5.53%), Sun Pharma (5.24%), Tata Motors (4.96%), Grasim Industries (4.03%), Reliance Infra (3.79%), HUL (3.23%), RCom (2.36%), JP Associates (2.20%), L&T Ltd (2.13%), Herohonda Motors (2.03%), NTPC Ltd (1.61%), SBI (1.43%), ITC Ltd (1.33%) and ACC Ltd (1.14%).
Gainers from the BSE Sensex pack are TCS Ltd (4.18%), Tata Power (2.91%), M&M Ltd (2.31%), Hindalco (1.28%), Reliance (0.84%), Wipro Ltd (0.58%) and Maruti Suzuki (0.55%).
On the global markets front the Asian markets that opened before the Indian market, ended mostly lower. Shanghai Composite, Hang Seng, Straits Times and Seoul Composite ended down by 171.94, 489.04, 19.98 and 1.71 points at 3,266.43, 20,135.50, 2,604.06 and 1,524.32 respectively. However, Nikkei 225 gained 25.98 points at 10,113.24. The Chinese stocks plunged sharply after the Chinese government has cut gasoline prices, which led heavy selling into metal, energy and realty stocks. Shanghai index fell also on profit booking after a five-day winning streak amid worries that banks may begin to restrict lending.
European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading up by 95.43 points at 5,270.17and in London FTSE 100 is trading higher by 39.84 points at 4,568.68.
The BSE Realty index lost (4.36%) or 178.35 points at 3,911.77. Housing Dev (7.13%), DLF Ltd (6.58%), Ansal Infra (5.82%), Parsvnath (5.45%) and Unitech Ltd (5.38%) closed in negative territory.
The BSE Consumer Durable index dropped by (3.13%) or 98.94 points at 3,066.04. Losers are Titan Ind (5.07%), Videocon Ind (3.93%), Rajesh Export (2.49%) and Blue Star L (0.78%).
The BSE Metal index ended down by (2.31%) or 289.01 points at 12,217.24. Scrips that lost are Tata Steel (5.77%), Sterlite Industries (5.53%), Ispat Industries (5.39%), Gujarat NRE C (4.67%) and Steel Authority (4.57%).
The BSE FMCG index closed lower by (2.03%) or 53.64 points at 2,584.42. Nestle Ltd (5.59%), United Spr (3.60%), United Brew (3.56%) and HUL (3.23%) ended in red territory.
The BSE Capital Goods index dropped by (1.75%) or 222.01 points to close at 12,440.16. Main losers are Reliance Industrial Infra (6.55%), Waqlchand In (5.87%), Suzlon Energy (5.29%), Everest Kanto (5.02%) and Jyoti Struct (4.98%).
The BSE IT index ended higher by (0.33%) or 12.42 points at 3,785.89. Scrips that gained are Rolta Ind (4.44%), TCS Ltd (4.18%), Moser Bayer (3.17%), Patni Computer (3.17%) and Mphasis Ltd (2.17%).
Wockhardt Ltd lost 5.61%. The company and its subsidiaries, announced the signing of agreements to divest its Nutritional businesses to Abbott, the global health care company.
Aurobindo Pharma Ltd dropped marginally by 0.98%. The pharma company has received the tentative approval for Donepezi! Hydrochloride Tablets 5mg and 1Qmg (ANDA 90-056) from the US Food & Drug Administration (USFDA).
Solix Technologies closed unchanged. The company announced that Ping An Insurance has selected Solix EDMS for database archiving, database sub setting and data masking for Oracle e-Business Suite R 11.5.10.
Ashapura Minechem Ltd plunged 4.89% as it is directed to pay damages of $24.16 million to London-based shipping firm IHX (UK).
HUL dropped by 3.23%. The company has reported a 2.7% fall in its net profit for the first quarter of 2009-10 at Rs. 543.19 crore against Rs. 558.20 crore in the year-ago quarter. The mark-to-market foreign exchange loss of Rs 32 crore has pulled down the net profit. However, the net sales were up 8% at Rs. 4,475.70 crore against Rs. 4,152.84 crore. The stock is now trading down by (2.78%) at Rs. 268.95.
Punjab National Bank ended up by 3.45%. The bank has posted a net profit for the period of Rs 8320.50 million for the quarter ended June 30, 2009 as compared to Rs 5124.00 million for the quarter ended June 30, 2008. Total Income has increased from Rs 45946.20 million for the quarter ended June 30, 2008 to Rs 61775.80 million for the quarter ended June 30, 2009.
Tata Steel, Sterlite, Sun Pharma retreat after poor Q1 numbers
A sell-off in Chinese stocks triggered a slide in stocks across emerging markets. Indian equities were no exception. Nevertheless, the BSE Sesnex regained the psychological 15,000 mark soon after falling below that level in early afternoon trade. The BSE 30-share Sensex lost 158.48 points or 1.03%, off 205.97 points from the day's high, and up 285.05 points from the day's low.
Realty, metal, and banking shares led the decline on the domestic bourses. Index heavyweight Reliance Industries recovered from intra-day low to rise over 0.5%. In stock-specific activity, Sun Pharma, Tata Steel and Sterlite Industries slumped after Q1 June 2009 results. However TCS jumped nearly 4%
As per the provisional figures on NSE, foreign institutional investors (FIIs) sold shares worth Rs 168.79 crore on Wednesday, 29 July 2009 whereas domestic institutional investors bought shares worth Rs 126.23 crore.
The market was volatile. Equities slipped in early trade on lower Asian stocks. It has soon regained positive zone with auto shares leading the recovery. A sell-off in Chinese stocks pulled Indian stocks sharply down in early afternoon trade. The market cut losses in afternoon trade on gains in European shares.
The market may remain volatile ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009. As per reports, rollovers of Nifty positions from July 2009 series to August 2009 series stood at 42%, as on Tuesday, 28 July 2009. Rollover in Mini Nifty was about 35%
The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 1112 companies rose 22.5% to Rs 54375 crore on 2.3% fall in sales to Rs 474743 crore in Q1 June 2009 over Q1 June 2008.
At a quarterly review of the monetary policy, the Reserve Bank of India (RBI) on Tuesday, 28 July 2009, kept the key rates unchanged and increased the inflation forecast to 5% by end March 2010 from earlier 4%. 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 'with an upward bias' were the addition to that forecast.
The Finance Minister 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. This could benefit realty firms and housing finance companies.
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.
Finance Minister Pranab Mukherjee today said the government hopes to maintain the present level of economic growth despite a global slump. Certain signs of improvement are visible, Mukherjee said.
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 Tuesday, 28 July 2009. The issue received strong response from investors and was subscribed around 4.64 times by 17:00 IST today, 29 July 2009. 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 power company NHPC will hit the primary market to raise upto Rs 6048 crore through sale of shares in a price-band of Rs 30-36 in an IPO. The issue will open on 7 August 2009 and close on 11 August 2009. The company would sell 168 crore shares comprising of 5% stake divestment of the government and infusion of 10% fresh equity.
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.
European stocks rose today, 29 July 2009 led by financial stocks. Key benchmark indices in UK, Germany and France were up by between 1.06% and 1.99%.
Earlier in the day, Chinese stocks in Shanghai fell sharply as investors rushed to take profits, also sending Hong Kong-traded shares of mainland Chinese companies lower. In extremely volatile moves, the Shanghai Composite plunged as much as 7.7% in afternoon trading, before recovering to settled 5% lower at 3,266.43, giving up most of the gains made over the last five sessions. Hong Kong's Hang Seng was down 2.37%.
China's stocks plunged amid speculation the central bank is poised to order lenders to set aside larger reserves. Chinese policy makers in recent weeks have flagged inflationary worries and possible asset bubbles since lending exploded. New yuan loans in the first half of the year totaled 7.4 trillion yuan ($1.08 trillion), equivalent to about half of the country's gross domestic product in the period. The loan growth has spurred calls by economists for the central bank to fine-tune its policies.
Still, the People's Bank of China has signaled no reversal of its moderately loose monetary-policy stance, which is aimed at spurring growth in the world's third-biggest economy.
The Shanghai Composite has gained 79% this year as government stimulus spending, record bank lending and an economic rebound spurred demand for equities.
In other Asian markets, key benchmark indices in Taiwan, South Korea, Singapore, were down by between 0.11% and 0.83%. However Japan's Nikkei 225 index rose 0.26%.
Trading in US index futures showed the Dow could fall 25 points at the opening bell on Wednesday, 29 July 2009.
US stocks ended on a mixed note on Tuesday, 29 July 2009 after weak consumer confidence data offset gains on account of positive earnings. The Dow Jones Industrial Average shed 11.79 points, or 0.13%, to 9,096.72. The Standard & Poor's 500 Index dropped 2.56 points, or 0.26%, to 979.62. But the Nasdaq Composite Index gained 7.62 points, or 0.39%, to 1,975.51.
A report showed that US consumer confidence in July 2009 fell to 46.6, registering a second straight drop.
The BSE 30-share Sensex lost 158.48 points or 1.03% to 15,173.46. The Sensex opened 38.75 points lower at 15,293.19. The Sensex lost 443.53 points at the day's low of 14,888.41 in early afternoon trade. The Sensex rose 47.49 points at the day's high of 15,379.43 in mid-morning trade
The S&P CNX Nifty was down 50.60 points or 1.11% to 4,513.50. Nifty July 2009 futures were at 4496.20, at a discount of 17.30 points as compared to the spot closing.
The Sensex is up 5526.15 points or 57.28% in calendar year 2009 as on 29 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7013.06 points or 85.94% as on 29 July 2009.
Coming back to today's trade, turnover in NSE's futures & options (F&O) segment galloped to Rs 1,16,508.34 crore from Rs 76,854.19 crore on Tuesday, 28 July 2009. The BSE clocked a turnover of Rs 7509 crore, higher than Rs 7051 crore on Tuesday, 28 July 2009
The market breadth, indicating the overall health of the market, was weak after a positive start. On BSE, 1575 shares declined as compared with 1095 that advanced. 76 shares remained unchanged.
The BSE Mid-Cap index lost 0.98% to 5,477.09, outperforming the Sensex. The BSE Small-Cap index slipped 1.46% to 6,154.75, underperforming the Sensex.
Most sectoral indices on BSE ended lower. The BSE Realty index (down 4.36%), BSE Capital Goods index (down 1.75%), the BSE Power index (down 1.24%), the BSE Metal index (down 2.31%), BSE PSU index (down 1.22%), BSE Healthcare index (down 1.72%), BSE FMCG index (down 2.03%), BSE Consumer Durables index (down 3.13%), the BSE Bankex (down 1.21%), underperformed the Sensex.
The BSE TECk index (down 0.33%), BSE Auto index (down 0.49%), the BSE IT index (up 0.33%), the BSE Oil & Gas index (up 0.32%), outperformed the Sensex.
Among the 30-member Sensex pack, 23 declined while the rest gained.
Rate sensitive realty shares dropped on profit taking after a recent rally. Investors are concerned that the central bank may start reversing its interest-rate cuts in early 2010 as food and energy prices fan inflation. Rising interest rates may dent property demand as most of the commercial and housing deals are driven by finance.
India's largest real estate developer by sales DLF plunged 6.83% to Rs 397 and was the top loser from the Sensex pack
Unitech (down 5.54%), Housing Development & Infrastructure (down 7.52%), Parsvnath Developers (down 6.11%), Sobha Developers (down 1.11%), and Omaxe (down 6.98%), declined
India's largest pharma company by market capitalisation Sun Pharma tumbled 5.38% after net profit declined 56.72% to Rs 121.51 crore in Q1 June 2009 over Q1 June 2008.
India's third largest pharma company by sales Cipla lost 3.22%. The company's net profit rose 72.6% to Rs 241.71 crore on 13.2% rise in net sales to Rs 1,325 crore in Q1 June 2009 over Q1 June 2008. The company declared its results during market hours today, 29 July 2009.
Alembic spurted 3.79% after the company posted consolidated net profit of Rs 12.25 crore in Q1 June 2009 as against net loss of Rs 4.70 crore in Q1 June 2008. The company declared its results after market hours on Tuesday, 28 July 2009.
Metal stocks slipped after LMEX, a gauge of six metals traded on the London Metal Exchange, declined 1.23% on Tuesday, 28 July 2009.
India's largest private sector steel maker by sales Tata Steel lost 6.09% after net profit fell 47% to Rs 789.83 crore on a 8.16% decline in total income to Rs 5661.89 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours today, 29 July 2009.
India's largest copper market by sales Sterlite Industries shed 5.70% after net profit fell 42% to Rs 6.73 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours today, 29 July 2009.
Steel Authority of India (down 4.32%), Sesa Goa (down 3.04%), Ispat Industries (down 5.82%), Nalco (down 2.23%), and Hindustan Zinc (down 2.74%), declined.
JSL jumped 4.67% after net profit surged 233.4% to Rs 94.76 crore on 13.3% fall in net sales to Rs 1346.49 crore in Q1 June 2009 over Q1 June 2008. The company declared its results after market hours on Tuesday, 28 July 2009.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 0.52% to Rs 1920.10, staging a smart pullback from day's low of Rs 1872.50
Reliance Natural Resources (RNRL) chairman Anil Ambani on Tuesday, 28 July 2009 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.
Oil exploration pivotals slipped on fall in crude oil prices. ONGC (down 0.75%), and Cairn India (down 2.68%), slipped. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.
But the fall in crude prices lifted shares of PSU OMCs. BPCL (up 0.67%), HPCL (up 0.69%) and Indian Oil Corporation (up 1.28%) gained. Lower crude oil prices will reduce underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.
HPCL reported a net profit of Rs 649.12 crore in Q1 June 2009 as compared with a net loss of Rs 888.12 crore in the Q1 June 2008. The results were declared during market hours today, 29 July 2009.
Light sweet crude for September delivery fell $1.15 to settle at $67.23 a barrel on the New York Mercantile Exchange on Tuesday, 28 July 2009.
Gujarat Gas Company jumped 13.31% after the company's board declared a liberal 1:1 bonus issue at the time of announcing Q2 June 2009 results after trading hours on Tuesday, 28 July 2009. This is a maiden bonus from Gujarat Gas Company.
Everest Kanto Cylinders tumbled 4.70% after net profit fell 18.2% to Rs 10.26 crore on a 28.3% decline in sales to Rs 65.44 crore in Q1 June 2009 over Q1 June 2008. The result was announced after market hours yesterday, 28 July 2009.
Great Offshore rose 4.85% to Rs 458.25 after 16.65 lakh shares, or 4.48% equity, changed hands in two block deals on the BSE and the NSE. The counter saw a block deal of 14.40 lakh shares on the Bombay Stock Exchange, at Rs 450 per share. Another deal of 2.24 lakh shares was executed on the National Stock Exchange at the same price.
India's largest software firm by sales TCS gained 3.89% to Rs 498.40 on reports the company will re-bid for the UGC order once fresh bids are called. The University Grants Commission (UGC) has reportedly cancelled a Rs 250 crore e-governance project it had awarded TCS in March 2009, due to funding and internal conflicts in UGC. It was the top gainer from the Sensex pack
Select auto stocks regained positive zone in choppy trade. India's largest tractor maker by sales Mahindra & Mahindra gained 2.21% to Rs 841, off day's low of Rs 806.85 ahead of its Q1 June 2009 earnings on 30 July 2009.
India's top small car maker by sales Maruti Suzuki India rose 0.12% to Rs 1390.50 after declining to day's low of Rs 1364. The stock struck a record high of Rs 1418 on the BSE in intra-day trade today, 29 July 2009. The stock has been on a roll ever since it announced strong Q1 June 2009 results during market hours on 23 July 2009.
But India's largest truck market by sales Tata Motors slumped 5.46% to Rs 391.60, off day's high of Rs 412 on profit booking. The had stock surged 10.76 on Tuesday, 28 July 2009 after reporting 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 on Monday, 27 July 2009.
India's largest bike maker by sales Hero Honda Motors slipped 2.02%. The company posted 83% jump in net profit to Rs 500 crore on 34% rise in total revenue to Rs 3865 crore in Q1 June 2009 over Q1 June 2008. The company announced Q1 June 2009 results after market hours today, 29 July 2009.
Bank stocks slipped after the Reserve Bank of India's (RBI) in its quarterly monetary policy review on Tuesday, 28 July 2009, raised inflation forecast which may result in reversal of the current soft interest rate regime. India's largest private sector bank by net profit ICICI Bank was down 1.17% mirroring a 3.25% fall in its American depository receipt (ADR) on Tuesday, 28 July 2009.
India's biggest bank in terms of branch network State Bank of India (SBI) fell 1.87%. The bank's chairman on Tuesday, 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.
India's second largest private sector bank in terms of operating income HDFC Bank declined 0.64% after a 1.61% fall in its American depository receipt (ADR) on Tuesday, 28 July 2009.
Punjab National Bank rose 2.97% after net profit surged 62.38% to Rs 832.05 crore on 34.45% rise in total income to Rs 6,177.58 crore in Q1 June 2009 over Q1 June 2008. The bank declared its results during trading hours today, 29 July 2009.
India's largest FMCG company by sales Hindustan Unilever declined 3.10% on selling pressure. The stock had tanked 7.68% on Tuesday, 28 July 2009 after reporting a 2.68% fall in net profit 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 on Tuesday, 28 July 2009.
Power generation stocks slipped on profit booking after a strong response to the Adani Power initial public offer which opened for subscription on Tuesday, 28 July 2009. Reliance Infrastructure (down 3.96%), NTPC (down 1.96%), Reliance Power (down 2.84%), declined. However, India's second largest private sector power generation firm by sales Tata Power rose 2.96% to Rs 1303.10, off day's low of Rs 1187
Rural Electrification Corporation rose 5.48% after net profit rose 73.1% 471.82 crore on 47.2% rise in net sales to Rs 1,449.35 crore in Q1 June 2009 over Q1 June 2008. The company declared its results after market hours on Tuesday, 28 July 2009.
Fertiliser shares declined on fears the ongoing tussle between the Ambani brothers might impact the smooth flow of gas from the Krishna Godawari basin which was earlier allocated to fertiliser firms on a priority basis.
Rashtriya Chemicals and Fertilizers (down 5.14%), Nagarjuna Fertilizers & Chemicals (down 3.16%), Chambal Fertilizers & Chemicals (down 1.96%), Deepak Fertilisers and Petrochemicals Corporation (down 2.59%), and Tata Chemicals (down 0.35%), declined.
Tata Steel topped the turnover chart on BSE with a turnover of Rs 300.14 crore, followed by Unitech (Rs 272.69 crore), Reliance Industries (Rs 258.54 crore), Aban Offshore (Rs 251.94 crore) and Jindal Steel & Power (Rs 251.94 crore)
Unitech led the volume toppers on BSE clocking volume of followed by Suzlon (2.98 crore shares), Cals Refineries (2.17 crore shares), Suzlon Energy (2.14 crore shares), Reliance Natural Resources (2.13 crore shares) and Ispat Industries (1.84 crore shares).
Gammon India jumped 10.76% to Rs 164.55. The stock had plunged as much as 12.44% in early trade to a day's low of Rs 130.10. The company has been served a show cause notice by the Delhi Metro Rail Corporation (DMRC), asking it to state why it should not be banned for two years and debarred for bidding contracts under phase IV of the project. This comes a little over a month after an accident at the site claimed six lives and prompted DMRC chief, E Sreedharan to submit his resignation. The probe panel has held Gammon India responsible for the mishap.
Birla Corporation spurted 2.55% after net profit rose 69.2% to Rs 155.34 crore on a 23.9% increase in sales to Rs 490.40 crore in Q1 June 2009 over Q1 June 2008. The result was announced after market hours on Tuesday, 28 July 2009
Kingfisher Airlines gained 2.42%. The company said it posted a net loss of Rs 1609 crore on net sales of Rs 5270 crore in the year ended March 2009. Year-ago figures were not immediately available. The results were announced today, 29 July 2009.
IPO Grey Market Premium - NHPC, Adani Power
Excel Infoways Ltd. 85
5 to 7
Raj Oil Mills Ltd. 100 to 120
Discount
Adani Power 90 to 100
10 to 12
NHPC 30 to 36
12 to 13
Daily News Roundup - July 29 2009
US$23bn strategic equity alliance between Bharti Airtel and MTN awaits clearance from the competition authorities of both countries. (ET)
Tata Motors appoints Roland Berger strategy consultant and KPMG to trim costs at JLR. (BS)
SABMiller selects Infosys to evaluate and improve the effectiveness of its marketing campaigns. (ET)
Maruti rolls out 100,000 KB-series cars in 10 months. (BS)
Sobha Developers is set to raise another Rs2.5bn by selling over 100 acres of its land in Pune. (BS)
Reliance Power plans to raise further Rs200bn to finance its ongoing projects. (ET)
Reliance Infrastructure aims at a five-fold increase in its roads portfolio to Rs22bn by 2012 from Rs46bn. (BS)
GMR has commenced commercial operations of its sixth national highway project - 73km stretch on NH-45. (ET)
KSK Energy to raise Rs20bn through FCCB or GDR issue. (BL)
McLeod Russel eyes Africa plantations to increase tea output. (FE)
Delhi Metro Rail Corporation serves Gammon India, the contractor working at the Zamrudpur accident site, a show-cause notice, bans it for 2 years and debars it from bidding for new contracts. (ET)
Maytas Infra ties up with a Singapore based consultancy firm to raise upto Rs2.4bn to retain the metro rail project. (ET)
JSW Steel plans to route upto 25% of its total revenues through retail chains over the next 2-3 years. (ET)
Matrix Laboratories has been issued a notice by WHO in relation to the anti-retroviral drugs it supplies to WHO for its HIV/AIDS program. (ET)
Wockhardt has sold its nutritional business comprising of Farex, Protinex, Dexolac and Nusobee and manufacturing units at Lalru and Jagraon in Punjab to Abbot Laboratories for US$130mn. (ET)
L&T Finance plans to raise Rs1bn via NCDs. (BS)
Jet Airways and Kingfisher Airlines bet on global routes for forex and fuel cost advantage. (BL)
Titan eyes sales of Rs150mn watches in Orissa. (BL)
Zensar Technologies announced a buyback plan with a maximum price of Rs165/share and a minimum outlay of Rs400mn. (BL)
Adani Power IPO oversubscribed 4 times on debut. (ET)
NHPC plans to have an installed capacity of 10GW by the end of the XIth Five Year Plan. (FE)
NHPC fixes IPO price band at Rs 30-36. (BL)
Century Textiles plans to invest Rs19.3bn over the next 2-3 years to modernize and expand its capacity. (ET)
RBI keeps rates unchanged, but has hinted at rising rates going forward. (ET)
Poor rains have damaged 35-40% of sugarcane crop in UP. (FE)
National Solar Mission targets solar generation of 20GW by 2020. (FE)
Uttar Pradesh Power department staff have threatened to go on a strike from August 11th. (FE)
Orissa Power Generation Corporation plans to expand its capacity by 1320 MW by 2013. (BS)
Property developers plan more launches in the sub-Rs2mn category homes, after Budget concession. (BS)
NABARD has sanctioned Rs7.9bn to implement various projects in Tamil Nadu. (BS)
No emotions on the Street!
They may forget what you said, but they will never forget how you made them feel.
An emotionally charged speech by Anil Ambani partly overshadowed the RBI’s Q1 review, which by the way held no surprises. We will only say that we haven’t heard the last word on the RIL-RNRL matter. Though the Supreme Court’s verdict should be binding, one cannot rule out surprises.
Coming to the RBI, the central bank sees an upward bias to growth. At the same time, it warns of an inflation spike in the second half of FY10. It is amply clear that interest rates have bottomed out and will head higher in step with the economic recovery. One will have to keep an eye on the trend in inflation, both locally and globally.
As far as markets are concerned, looks like the bulls are suffering from fatigue after a two-week rally. Even the global markets have turned insipid. Today again, we are likely to witness a lackluster and choppy day after a cautious start. On the eve of the F&O expiry, any decisive move looks unlikely. Besides, a plethora of results are in the pipeline over the next 2-3 days.
Results Today: Ackruti, AV Birla Nuvo, Alfa Laval, Alok Industries, Balaji Telefilms, Bank of Rajasthan, BPL, Cairn India, Cipla, Corporation Bank, Cummins India, EID Parry, Elder Pharma, Future Capital, GSK Consumer, Godrej Industries, Great Offshore, Hero Honda, Hexaware, HPCL, HDIL, IOB, Indraprastha Gas, IRB Infra, IVR Prime, IVRCL Infra, Jindal Steel, Kalpataru Power, Lanco Infra, Lupin, Matrix Labs, NIIT, NIIT Tech, Nirma, NMDC, Noida Toll, Patni, Power Grid, PNB, RNRL, Reliance Power, Sesa Goa, Shipping Corp., Shoppers Stop, Sobha Developers, Sterlite Industries, Sun Pharma, Sun TV, Tata Elxsi, Tata Steel, Torrent Pharma and United Spirits.
FIIs were net sellers of Rs587.6mn in the cash segment on Tuesday on a provisional basis while the local funds pumped in Rs4.48bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs6.7bn. On Monday, the foreign funds were net buyers of Rs4.46bn in the cash segment. Mutual Funds were net sellers on the same day at Rs1.77bn.
US stocks ended mixed on Tuesday as investors weighed a weaker-than-expected consumer confidence report and a better-than-expected housing report in the aftermath of a big rally.
The Dow Jones Industrial Average lost 12 points, or 0.1%, to 9,096.72. The S&P 500 index fell almost 3 points, or 0.3%, to 979.62. The Nasdaq Composite index rose 7 points, or 0.4%, to 1,975.51.
US stocks have gained for the last two weeks on the back of stronger than expected second-quarter results. The Dow and S&P 500 have added around 11.5% and the Nasdaq has gained 12%. But after such a big run, stocks have become vulnerable to some profit taking.
Consumer confidence slipped for the second straight month, the Conference Board reported, as growing joblessness and a prolonged recession took a toll on investor psychology. The index dipped to 46.6 in July from 49.3 in June. Economists thought the index would slip to 49.
As a result of growing joblessness and weak consumer confidence, spending by consumers is likely to remain sluggish. That doesn't bode well for GDP growth, which drives two-thirds of consumer spending.
On Friday, the US government will release the initial reading on second-quarter GDP. The report is expected to show that GDP shrank at a 1.5% pace, according to economists, after shrinking at a 5.5% pace in the first quarter. The slower pace may signal better times are on the horizon.
On a more positive note, a key measure of home prices showed its first monthly increase in three years. The S&P/Case-Shiller 20-city home price index rose 0.5% in May. The index dropped 17.1% versus a year ago, short of forecasts for a bigger drop of 17.9%. It was the fourth month in a row that the pace of declines lessened. On Monday, another report showed sales of new homes rose more than expected in May.
The three-week rally that’s sent a measure of homebuilder stocks toward a seven-month high is signaling an end to the worst housing downturn since the 1930s, according to John Murphy, chief technical analyst at StockCharts.com.
Valero Energy reported weaker revenue and earnings that topped estimates. Shares fell 2.4%. It was one of several oil services companies tumbling, along with the price of crude. Dow components Chevron and Exxon Mobil both declined modestly. The Amex Oil index fell 1.4%.
US light crude oil for September delivery fell $1.15 to settle at $67.23 a barrel on the New York Mercantile Exchange.
Bank of America shares gained after the company said it plans to reduce some of its 6,100 branch network. Reports said it planned to cut as much as 10% of the network, but the bank said the figure was smaller.
In deal news, IBM said it will buy Chicago-based business software maker SPSS in an all-cash deal worth $50 per share or $1.2 billion.
Sprint Nextel will buy the remaining 87% of Virgin Mobil it doesn't already own in an all-stock deal worth $5.50 per share or $483 million.
Media conglomerate Viacom reported weaker quarterly profit that nonetheless topped expectations.
This week is the biggest for corporate results, with 146 of the S&P 500 due to release reports. So far, 77% of reported earnings have topped forecasts, versus the long-term average of 61%, according to earnings tracker Thomson Reuters.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.70% from 3.72% late on Monday.
The two-year notes declined after a $42 billion auction did not generate as much interest as the prior month's two-year note auction.
In currency trading, the dollar fell versus the euro and fell against the Japanese yen.
COMEX gold for December delivery fell $14.60 to settle at $941.70.
Sprint Nextel, Time Warner and ConocoPhillips are all due to report results on Wednesday morning.
The June durable goods orders report is also due Wednesday morning, along with the weekly crude oil inventories report from the Energy Information Administration. In the afternoon, the Federal Reserve releases its periodic "Beige Book" report on economic activity in its 12 districts.
European shares were unable to extend their recent bull run, ending mostly lower, as investors took stock of mixed earnings from the likes of Deutsche Bank, BP, EADS and BBVA. After showing mild gains early in the session, the pan-European Dow Jones Stoxx 600 index turned lower to close at 218.54, down 0.9%.
UK's FTSE 100 index fell 1.3% to close at 4,528.84, snapping an 11-session winning streak. The German DAX index traded down 1.5% to end at 5174.74, while the French CAC-40 index dropped 1.2% to settle at 3,330.97.
Indian markets ended on a flat note for the second straight trading session as key indices were unable to stage a linear one-way movement in either direction. Subdued cues from international equity markets also played a spoilsport for the bulls on Tuesday.
In addition, the NSE Nifty once again faced stiff resistance at the 4,600 level which has acted a hurdle for the index in the past. Having said that, the broader market was in action indeed as the Mid-Cap and the Small-Cap index both ended higher by 1.5% each.
Monetary policy review also turned out to be a non event, as expected, the Reserve Bank of India (RBI) kept all policy rates unchanged, as it seeks to bolster economic growth amid persistent worries over the precarious global situation.
The Realty, Auto, Metals and the Power stocks were in demand. While, the FMCG, Banking and the Oil & Gas stocks remained under pressure.
The BSE Sensex ended lower by 43 points at 15,332 after touching a high of 15,463 and a low of 15,240. The index opened at 15,428 against the previous close of 15,375. The NSE Nifty slipped 13 points to shut shop at 4,559.
In Asia, the Nikkei in Japan ended flat to end at 10,087, while Australia's S&P/ASX ended higher by 0.7% at 4,169. The Hang Seng index in Hong Kong advanced by 1.8% to end at 20,624.
In Europe, stocks were mixed. The FTSE in the UK was down 0.3% at 4,573. The DAX was flat at 5,243 and the CAC 40 was down 0.2% at 3,367.
Coming back to India, among the BSE sectoral indices, the Realty index was the top gainer, rising 4.5%, followed by the Auto index that was up 2.1%. The BSE Metal index up 1.2% and the BSE Power index was up 0.7%.
The BSE Mid-Cap index advanced 1.1% and the BSE Small-Cap index rose 1.6%.
Within the Sensex, the major gainers were Tata Motors, Reliance Infra, DLF, Maruti, RCom, Tata Power and Tata Steel. Among the major losers were Hindustan Unilever, ICICI Bank, Grasim, SBI, Reliance Industries and Infosys.
Outside the frontline indices, the top gainers included Cadila, Nagarjuna Const, Renuka Sugar, Welspun Gujarat, Tata Chemicals and RCF.
Among the big losers in the broader market were Areva, Bank of India, Fin Tech, ABB and Jain Irrigation.
Grasim Industries has posted 61% growth in net profit at Rs10.80bn for the quarter ended June 30, 2009. The huge growth is on account of sale of its sponge iron division. Excluding the one time gain, the company has still managed to clock in growth of 3% YoY. Net profit for the company for the quarter ended June 30, 2008 was at Rs6.72bn
Total Income is Rs51.79bn for the quarter ended June 30, 2009 where as the same was at Rs45.16bn for the quarter ended June 30, 2008. The stock slipped nearly 2% to Rs2837, it opened at Rs2898 and made an intra-day high of Rs2938 and a low of Rs2802. Total traded volumes stood at 92,000 shares.
Shares of Hindustan Unilever dropped by over 7% to end at Rs277 after the company reported a net profit of Rs5.43bn down 2.6% YoY for the fiscal first quarter ended June 30, 2009 as against Rs5.58bn in the same period last year. Total income for the reporting quarter has increased to Rs45.36bn from Rs43.17bn for the quarter ended June 30, 2008.
The stock opened at Rs303 and made an intra-day high of Rs306 and a low of Rs273. Total traded volumes stood at 4.3mn shares.
Shares of ITC gained by 1% to end at Rs240. According to reports, the company plans to invest Rs80bn in the next five years to scale up its hotel business. Besides investing Rs80bn for hotel expansion, the company is also investing Rs40bn-50bn in a greenfield paper plant.
The stock opened at Rs240 and made an intra-day high of Rs245 and a low of Rs232. Total traded volumes stood at 0.89mn shares.
Shares of Kotak Mahindra Bank slipped by 1% to end at Rs662. The company announced its Q1 results with net profit at Rs2.57bn as against Rs1.5bn in the same period previous year. Thereby posting a 71% growth YoY.
Total Income increased from Rs7.9bn for the quarter ended June 30, 2008 to Rs8.9bn for the quarter ended June 30, 2009. The stock opened at Rs672 and made an intra-day high of Rs681 and a low of Rs648. Total traded volumes stood at 0.67mn shares.
Bharti Airtel announced that the company has exceeded 1mn customers in Sri Lanka and further plans to start operations in Sri Lanka North. Shares of Bharti gained by 1% to Rs427. The stock opened at Rs425 and made an intra-day high of Rs435 and a low of Rs415. Total traded volumes stood at 0.99mn shares.
Shares of SpiceJet surged by over 5% to Rs20 after the company returned to profits.
The company announced its quarterly results with a net profit of Rs263.4mn for the three months ended June 30 as against a loss of Rs1292.2mn in the same period a year earlier. The company’s Net sales were at Rs5,246.9mn as against Rs4,571.9mn in the same period last year.
Pre Session Commentary - July 29 2009
Today domestic markets are likely to open negative as majority of markets in Asia are trading in red. The US consumer confidence data tumbled for the second consecutive month causing further concerns of deteriorating demand. In the domestic arena the first quarter results from a majority of heavyweights like Tata Steel and Hero Honda would play a major role in guiding the market sentiments. Besides there is immense cautiousness prevailing amongst domestic traders ahead of the F&O expiry.
On Tuesday, domestic markets closed choppy ahead of F&O expiry. The markets opened on a subdued note ahead of the F&O expiry. Finally the much awaited RBI June quarterly review policy came with a lot of disappointment. RBI kept its key rates unchanged however asserted the fact that there is some scope for lowering interest rates. RBI forecasts the WPI inflation to remain at 5% and GDP growth rate to be at 6% during FY10. There was lot of disappointment prevailing in the market and traders were hesitating to buying at higher levels. The range bound trade finally ended flat as traders squared off their positions. From the sectoral front Realty, Auto and Metal led the markets with gains of 4.64%, 1.92% and 1.25% respectively. There was phenomenal bottom fishing once again as BSE Mid Cap and Small Cap index gained by 1.13% and 1.68% respectively. Domestic markets are likely to trade range bound today.
The BSE Sensex closed lower by 43.10 points at 15,331.94 and NSE Nifty also ended flat at 4,564.10. BSE Mid Caps and Small Caps closed up by 61.87 points 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.
On Tuesday, the US stock markets closed mixed. There was lot of consolidation happening across the broader level and during the day stocks spent most of their time in the negative territory. The Consumer confidence data disappointed traders as it made its second straight decline by coming at 46.6. Retailers performed well despite of poor consumer confidence data. Health care stocks (+0.2%) outperformed the broader market for the entire session on the back of better-than-expected earnings and an upside forecast from Amgen (AMGN 62.42, +1.65) and upbeat earnings and an in-line outlook from Teva Pharmaceutical (TEVA 53.25, +2.15). Treasuries were in the limelight but the auction of $42 billion 2-year notes pulled some of early gains. The auction had a bid to cover ratio of 2.75 and fell two ticks. US light crude oil futures for September delivery closed at $67.23 per barrel down by 1.7% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed lower by 11.79 points at 9,096.72, NASDAQ index inclined by 7.62 points to 1,975.51 and the S&P 500 (SPX) closed low by 2.56 points at 979.62.
Today major stock markets in Asia are trading in negative territory. Hang Seng is low by 344.74 points at 20,279.80. Shanghai Composite is low by 60.32 points at 3,378.05. Japan''s Nikkei is trading up by 5.58 points at 10,092.84. Strait Times is low by 4.12 points at 2,619.92.
Indian ADRs ended weak on Tuesday. In the banking space, ICICI Bank was down 3.25% and HDFC Bank was down 1.61%. In the telecom space, MTNL was down 2.16% and Tata Communication was down 0.05%. In the IT space, Satyam Computers was down 1.5%, Infosys was down 1.01%, Wipro was down 0.07% while Patni Computers was up 1.19%.
The FIIs on Tuesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 3,032.30 Crore, while the gross equity sold stood at Rs 2,586.10 Crore and gross debt purchased stood at Rs 553.50 Crore, while gross debt sold stood at Rs 429.80 Crore. The net investment of equity reported was Rs 446.10 Crore and net debt was Rs 123.80 Crore.
On Tuesday, the partially convertible rupee ended at Rs 48.20/21, 0.08% stronger than its previous close at 48.16/17. The rupee fell due to lack of cues from the local domestic stock markets which traded range bound.
On BSE, total number of shares traded were 50.32 Crore and total turnover stood at Rs 7,051.37 Crore. On NSE, total number of shares traded were 111.05 Crore and total turnover was Rs 22,072.74 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 134887122 shares, followed by Suzlon Energy with 43935787, DLF with 20024293, Tata Motors with 15517278 and HUL with 14579109 shares.
On NSE Future and Options, total number of contracts traded in index futures was 766690 with a total turnover of Rs 17,182.21 Crore. Along with this total number of contracts traded in stock futures were 947123 with a total turnover of Rs 29,094.10 crore. Total numbers of contracts for index options were 1238904 with a total turnover of Rs 28,401.90 Crore and total numbers of contracts for stock options were 68548 and notional turnover was Rs 2,175.98 Crore.
Today, Nifty would have a support at 4,505 and resistance at 4,648 and BSE Sensex has support at 15,195 and resistance at 15,548.
Volatility may continue
The presense of a sharp intra-day volatile trend due to lack of clarity may see the market remain edgy and move on the either side of the zone. Mixed close at the US markets and weak start in Asian indices trend in the present trades could move down the local indices in early trades. The Sensex swung 300 points during intra-day trades on Fed jitters and shed 0.21% at the close on Tuesday across-the-board selling pressure. Key announcements like Reliance Power, RNRL, Hero Honda, Tata Steel, Sterlite, Sesa Goa, Jindal Steel, Cairn India, Cipla, Sun Pharma, HPCL, PNB are expected to announced their figures.
US markets ended mixed Tuesday as investors weighed a weaker-than-expected consumer confidence report and a better-than-expected housing report in the aftermath of a big rally. While the broader Dow Jones scaled down by 12 points at 9097, and the tech-heavy Nasdaq moved up by 8 points to close at 1976.
Barring Patni Computers & Tata Motors, rest of the Indian ADRs followed the US markets and ended with losses. Rediff, ICICI Bank and MTNL shed over 2-3% each while HDFC Bank, Infosys, Satyam, Wipro, Dr Reddy's and VSNL were down around 0.50-1% each.
Crude oil prices are moved down sharply, while the Nymex light crude oil for September delivery declined by $1.15 to close at $67.23 a barrel. In the commodity segment, the Comex gold for December series dropped by $14.60 to settle at $941.70 an ounce.
Crude marks first drop in four sessions
Strong dollar pulls down crude
Crude prices ended lower on Tuesday, 28 July, 2009. Prices dropped for the first time in four sessions today. Prices faltered due to the relatively strong dollar.
On Tuesday, crude-oil futures for light sweet crude for September delivery closed at $67.23/barrel (lower by $1.15 or 1.7%). Prices fell to a low of $66.6 earlier 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 54.4% since then. In July, 2009, it has dropped by 4.5% till date. Year to date, in 2009, crude prices are higher by 41.8%.
In the currency market on Tuesday, the dollar index, a six-currency gauge of the greenback's value, rose by more than 0.4%. The dollar strengthened on weak consumer confidence data.
The Conference Board reported on Tuesday, 28 July, 2009 that consumer confidence took its second consecutive monthly drop in July, 2009. The index dropped to 46.6 in July from an unrevised 49.3 in June. In May, the confidence gauge stood at 54.8. The confidence measure was worse than expected. Market was expecting confidence to dip to 48 in July from the June reading.
Also at the Nymex on Tuesday, August reformulated gasoline fell 2.41 cents to $1.9106 a gallon and August heating oil dropped 3.19 cents to $1.7647 a gallon.
August natural gas futures declined 6.90 cents to $3.5350 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 lower by Rs 41 (1.24
Precious metals turn pale
Gold and silver witness substantial drops as crude slips and dollar gains
Falling crude price and strengthening dollar took their toll on precious metals on Tuesday, 28 July, 2009. Crude prices slipped for the first time after four consecutive sessions of rise. On the other hand, weak consumer confidence data strengthened the dollar. These factors reduced the appeal of precious metals as a hedge against inflation.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Tuesday, gold for August delivery ended at $939.1, lower by $14.40 (1.5%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 1.6%. Year to date, gold prices are higher by 6%.
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 Tuesday, Comex silver futures for September delivery lost 25 cents (1.8%) at $13.74 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 21.7% this year. For 2008, silver had lost 24%.
In the currency market on Tuesday, the dollar index, a six-currency gauge of the greenback's value, rose by more than 0.4%. The dollar strengthened on weak consumer confidence data.
The Conference Board reported on Tuesday, 28 July, 2009 that consumer confidence took its second consecutive monthly drop in July, 2009. The index dropped to 46.6 in July from an unrevised 49.3 in June. In May, the confidence gauge stood at 54.8. The confidence measure was worse than expected. Market was expecting confidence to dip to 48 in July from the June reading.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for August delivery closed lower by Rs 186 (1.2%) at Rs 14,755 per 10 grams. Prices rose to a high of Rs 14,962 per 10 grams and fell to a low of Rs 14,715 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 331 (1.5%) lower at Rs 22,396/Kg. Prices opened at Rs 22,750/kg and fell to a low of Rs 22,258/Kg during the day's trading.
Indices seen opening little changed on mixed global cues
Local equity indices are likely to see a muted start following mixed global cues. However high intra-day volatility may not be ruled out ahead of the derivative contracts expiry for the July 2009 series on Thursday, 30 July 2009. The SGX Nifty futures for July 2009 expiry was down 2 points, while that of August 2009 expiry slumped 38 points in Singapore. Companies announcing their June 2009 quarterly results today, 29 July 2009 will be in spotlight. Also the raging battle between the estranged Ambani brothers may damped sentiment on the bourses.
Hero Honda Motors, Tata Steel, Sterlite Industries, Sesa Goa, Jindal Steel, Cairn India, Cipla, Sun Pharma, HPCL, PNB, Reliance Power and RNRL among others will announce their June 2009 quarterly result today, 29 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 ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009.
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 28 July 2009. The issue received strong investors response and was subscribed around 4 times on day one. 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 will hit the primary market on 7 August to raise around 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.
Most Asian markets were trading
lower today, 29 July 2009, snapping recent rally. Key benchmark indices in Hong Kong, Taiwan, Singapore, South Korea, China, were down by between 0.18% and 1.47%. However Japan's Nikkei 225 rose 0.17%.
US stocks ended on a mixed note on Tuesday, 29 July 2009 after weak consumer confidence data offset gains on account of positive earnings. The Dow Jones Industrial Average shed 11.79 points, or 0.13%, to 9,096.72. The Standard & Poor's 500 Index dropped 2.56 points, or 0.26%, to 979.62. But the Nasdaq Composite Index gained 7.62 points, or 0.39%, to 1,975.51.
On the economic front, markets struggled after a report that the July 2009 consumer confidence fell to 46.6, registering a second straight drop.
Back home, in a major event on Tuesday, 28 July 2009, the Reserve Bank of India (RBI) kept the key rates unchanged and increased the inflation forecast to 5% by end March 2010 from earlier 4%. 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.
Reliance Natural Resources (RNRL) chairman Anil Ambani on Tuesday, 28 July 2009 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.
The Finance Minister 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. This could benefit realty firms and housing finance companies.
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.
As per the provisional figures on the NSE, foreign institutional investors (FIIs) sold shares worth Rs 58.76 crore on Tuesday, 28 July 2009 while domestic institutional investors bought shares worth Rs 448.22 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.
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