Weekly Wrap - July 31 2009
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Friday, July 31, 2009
BSE Bulk Deals to Watch - July 31 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
31/7/2009 532727 ADHUNIK MET TEMPLETON MUTUAL FUND A/C FRANKLIN INDIA HIGH GROWTH INDIA FUND B 500000 101.45
31/7/2009 532981 ANU LABS KIRIT KUMAR MOHANLAL PATEL B 673337 15.12
31/7/2009 530245 ARYAMA FIN S PARESH KUMAR BABULAL SHAH B 66363 10.00
31/7/2009 530245 ARYAMA FIN S BETEL TRADING AND COMMERCIAL PVT LTD S 68000 10.00
31/7/2009 512149 AVANCE TECHN DILIP RASIKLAL PAREKH S 39723 69.40
31/7/2009 590076 CAMSON BIO JMP SECURITIES PVT LTD B 68612 55.49
31/7/2009 590076 CAMSON BIO A T INVOFIN INDIA PVT LTD B 50000 56.20
31/7/2009 590076 CAMSON BIO JMP SECURITIES PVT LTD S 67612 55.55
31/7/2009 513337 GUJ.TOOLROOM SHOBHA IMTIYAZ DESAI B 50000 8.97
31/7/2009 513337 GUJ.TOOLROOM DEVANG JAYANTKUMAR GADOYA S 50000 8.97
31/7/2009 513337 GUJ.TOOLROOM DEVANG JAYANT KUMAR GADOYA S 20000 8.97
31/7/2009 509597 HARDCAS WAUD VINOD SHARES LTD B 8000 245.00
31/7/2009 509597 HARDCAS WAUD VINOD SHARES LTD S 8000 245.00
31/7/2009 514034 JBF.IND.LTD BHAGIRATH C ARYA B 367050 74.05
31/7/2009 514034 JBF.IND.LTD NIRAJ REALTORS & SHARES PVT. LTD. S 400000 74.35
31/7/2009 514034 JBF.IND.LTD IL & FS PRIVATE EQUITY TRUST A/C. LEVERAGE INDIA FUND S 350000 85.46
31/7/2009 524826 JUPITER BIOS MACQUARIE BANK LIMITED S 110000 66.82
31/7/2009 532741 KAMDHENU NAVNIT BHAIMULCHANDBHAI SHAH S 99450 16.55
31/7/2009 530255 KAY POW PAP JOLLY GUPTA B 73100 7.62
31/7/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 64521 7.48
31/7/2009 530255 KAY POW PAP NARENDER GUPTA B 58100 7.73
31/7/2009 530255 KAY POW PAP GIRRAJPRASAD GUPTA B 97320 7.60
31/7/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 82819 7.63
31/7/2009 530255 KAY POW PAP OM PARKASH GUPTA S 75455 7.74
31/7/2009 530255 KAY POW PAP SUNDER DASS AGARWAL S 87363 7.35
31/7/2009 531731 KUVAM INTL UMESH PARMANAND BAJAJ B 18000 13.94
31/7/2009 531731 KUVAM INTL SANJEEV KUMAR GUTPA S 23000 13.94
31/7/2009 507759 LIME CHEM DUKE SPECIAL OPPORTUNITIES FUND LLC S 20000 4.28
31/7/2009 503685 MEDIA ONE EQUAAS ESTATES PRIVATE LIMITED S 94200 140.21
31/7/2009 526263 MOLDTEK TECH VIJAY KUMAR DARAPVNENI B 20000 95.88
31/7/2009 533080 MOLDTK PLA SURESH KANMAL JAJOO S 93600 32.14
31/7/2009 531096 MOUNT EVE MI DERIVE TRADING PVT LTD B 219000 71.92
31/7/2009 507813 NAT.OXYGEN VINOD SHARES LTD B 34000 34.71
31/7/2009 507813 NAT.OXYGEN VINOD SHARES LTD S 34000 34.71
31/7/2009 513121 ORICON ENT ASHOK KUMAR SATYANARAIN BIYANI S 48938 106.56
31/7/2009 511702 PARSHART INV KRUNAL GOPALDAS RANA B 20000 9.88
31/7/2009 590077 RANKLIN SOLU DEVAIAH MONDI S 25936 33.06
31/7/2009 532055 RASHEL AGROT ASHOKA FINSTOCK LTD B 50000 1.91
31/7/2009 532055 RASHEL AGROT SAHARA INDIA COMMERCIAL CORP LTD S 50000 1.91
31/7/2009 531898 SANGUINE MD ARCHIT AJIGNESH SHAH S 100000 3.25
31/7/2009 533056 SARK SYS PANNA LAL BHANSALI B 50004 16.01
31/7/2009 524540 SECUN HEALTH DHARMENDRA J MADHANI B 45000 24.30
31/7/2009 524540 SECUN HEALTH ANIL KUMAR KADAGATHUR S 72000 24.62
31/7/2009 532651 SPL INDS SURESH KANMAL JAJOO B 170000 9.35
31/7/2009 532651 SPL INDS SEEPRA SUMEET KABRA S 170000 9.35
31/7/2009 519228 TEMPT.FOODS CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED S 150000 34.49
31/7/2009 531962 VALLEY INDIA SANGEETABEN BANSIDHAR RANKA B 30000 11.77
31/7/2009 503657 VEER ENERGY JITENDRA KUMAR JAIN B 9500 193.46
31/7/2009 503657 VEER ENERGY HASTIMAL JAIN RAKESH B 9500 193.56
31/7/2009 503657 VEER ENERGY JITENDRA KUMAR JAIN S 9500 193.56
31/7/2009 503657 VEER ENERGY HASTIMAL JAIN RAKESH S 9500 193.81
31/7/2009 531249 WELL PACK PA HEMANT MADHUSUDAN SHETH S 33900 161.32
31/7/2009 532788 XL TEL ENE DYNAMIC STOCK BROKING INDIA PVT LTD B 94207 48.06
31/7/2009 532788 XL TEL ENE DYNAMIC STOCK BROKING INDIA PVT LTD S 91579 47.92
NSE Bulk Deals to Watch - July 31 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
31-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,255151,1030.78,-
31-JUL-2009,ABAN,Aban Offshore Ltd.,PRB SECURITIES PRIVATE LTD.,BUY,193383,1034.46,-
31-JUL-2009,HANUNG,Hanung Toys and Textiles,TCG STOCK BROKING LTD,BUY,135000,74.41,-
31-JUL-2009,IGPL,IG Petrochemicals Ltd.,SPARK SECURITIES PVT. LTD,BUY,150632,28.65,-
31-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,8348221,22.76,-
31-JUL-2009,SPLIL,SPL Industries Limited,VIMLA SURESJH JAJOO,BUY,172107,9.20,-
31-JUL-2009,XLTELENE,XL Telecom & Energy Ltd,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,BUY,107105,47.56,-
31-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,255151,1031.00,-
31-JUL-2009,ABAN,Aban Offshore Ltd.,PRB SECURITIES PRIVATE LTD.,SELL,180983,1032.46,-
31-JUL-2009,IGPL,IG Petrochemicals Ltd.,SPARK SECURITIES PVT. LTD,SELL,170868,26.91,-
31-JUL-2009,INDIAINFO,India Infoline Limited,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,2625965,136.92,-
31-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,8479644,22.73,-
31-JUL-2009,JBFIND,JBF INDUSTRIES LTD,IL & FS PRIVATE EQUITY TRUST A/C. LEVERAGE INDIA FUND,SELL,450000,85.31,-
31-JUL-2009,SPLIL,SPL Industries Limited,KABRA SEEPRA SUMEET,SELL,172107,9.20,-
31-JUL-2009,XLTELENE,XL Telecom & Energy Ltd,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,SELL,76721,47.15,-
Global stocks, fund flows to dictate trend
With the Q1 June 2009 earnings season over, the domestic bourses may track global markets in the coming days. A strong global risk appetite has boosted stocks across the globe in the past few days. The BSE Sensex struck its highest level in more than 13 months.
The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 1792 companies rose 23% to Rs 69263 crore on 5.2% fall in sales to Rs 651371 crore in Q1 June 2009 over Q1 June 2008.
Brokerages are likely to revise their earnings estimates upwards for the Sensex after most companies forming the part of the index reported results that beat analysts' expectations.
The BSE Sensex gained 1.89% to 15,670.31 in the week ended 31 July 2009. It was the Sensex's highest closing since 17 June 2008. The S&P CNX Nifty rose 1.48% to 4636.45 in the week.
Foreign institutional investor (FII) bought shares worth a net Rs 9,653.60 crore in July 2009 (till 29 July 2009). FIIs had bought stocks worth a net Rs 3,224.90 crore in June 2009. Their inflow in calendar year 2009 totaled Rs 34,197.80 crore
Investors will closely watch the progress of the annal monsoon as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains. The southwest monsoon rains, running between June to September, were 18% below normal in the week to 29 July 2009, having been above normal for the previous two weeks, the India Meteorological Department said on its website on Thursday, 30 July 2009. Total rainfall since the beginning of June was 19% below average, the weather bureau said.
Meanwhile, investor focus is likely to shift from secondary market to the primary market with the Adani Power's initial public offer seeing spectacular response. The public issue of 30.16 crore shares in the price band Rs 90-100 which opened for subscription from 28 July 2009 was oversubscribed 18.24 times by 15:00 IST on Friday, 31 July 2009, the last of the bidding. 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.
Globally the sentiment has been buoyant with the US equity indices surging to nine-month highs, with the Dow Jones above the psychological 9,000 mark on better-than-estimated results from frontline companies. Asian markets, too, struck 11-month high, as better-than-expected earnings of companies from Japan and US reinforced hopes of stronger global growth.
World equity funds garnered $9.5 billion in the week ending 29 July 2009, according to data the latest data from global fund tracker EPFR Global. The inflow was the highest since June 2008.
Emerging markets continued to be the darling of investors, with dedicated BRIC (Brazil, Russia, India and China) equity funds seeing net inflows for a 19th straight week. India equity funds took in a year-to-date high of $211 million in the most recent week, while China and Greater China stock funds saw $711 million in fresh money.
Meanwhile, investors will closely watch the preliminary second-quarter US GDP data about to be released by the Commerce Department on Friday, 31 July 2009. Economists forecast a 1.5% annualised pace of contraction in the second quarter, following a 5.5% drop in the first three months of 2009.
Market extends gains for a third week in a row
Better-than-expected earnings from India Inc, strong global cues and sustained buying by foreign funds helped the key benchmark indices extend gains for the third straight week. The BSE Mid-Cap and the BSE Small-Cap indices outperformed the Sensex.
The Securities and Exchange Board of India (Sebi) on 27 July 2009 introduced 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 BSE Sensex jumped 291.35 points or 1.89% to 15,670.31 in the week ended 31 July 2009. It was the Sensex's highest closing since 17 June 2008. The S&P CNX Nifty rose 67.90 points or 1.48% to 4636.45 in the week.
The BSE Mid-Cap index jumped 189.21 points or 3.52% to 5,571.02 and the BSE Small-Cap index rose 155.63 points or 2.57% to 6,205.83
The Sensex is up 6023 points or 62.43% in calendar year 2009 as on 310 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,509.91 points or 92.02% as on 31 July 2009.
A majority of the Q1 June 2009 results surpassed analysts' expectations with lower costs helping bottomline growth. The combined net profit of 1921 companies rose 20.50% to Rs 71437 crore on 5.1% fall in sales to Rs 673497 crore in Q1 June 2009 over Q1 June 2008.
Foreign institutional investor (FII) bought shares worth a net Rs 11066.30 crore in July 2009. FIIs had bought stocks worth a net Rs 3,224.90 crore in June 2009. Their inflow in calendar year 2009 totaled Rs 35369.90 crore
But a weak monsoon remains a cause of concern. The southwest monsoon rains, running between June to September, were 18% below normal in the week to 29 July 2009, having been above normal for the previous two weeks, the India Meteorological Department said on its website on Thursday, 30 July 2009. Total rainfall since the beginning of June was 19% below average, the weather bureau said.
In a major event, the Rererve Bank of India (RBI) kept the key rates unchanged and increased the inflation forecast to 5% by end March 2010 from earlier 4%, at its quarterly monetary policy review meet on Tuesday, 28 July 2009. 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 GDP is expected to grow at 6% in FY 2010, with an upward bias. 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.
Finance Minister Pranab Mukherjee after trading hours on 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 % 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.
Markets across the globe with the US equity indices surging to nine-month highs, with the Dow Jones above the psychological 9,000 mark on better-than-estimated results from frontline companies. Asian markets, too, struck 11-month high, as better-than-expected earnings of companies from Japan and US reinforced hopes of stronger global growth.
World equity funds garnered $9.5 billion in the week ending 29 July 2009, according to data the latest data from global fund tracker EPFR Global. The inflow was the highest since June 2008.
Emerging markets continued to be the darling of investors, with dedicated BRIC (Brazil, Russia, India and China) equity funds seeing net inflows for a 19th straight week. India equity funds took in a year-to-date high of $211 million in the most recent week, while China and Greater China stock funds saw $711 million in fresh money.
Closer home, trading for the week began on a muted note as key benchmark ended almost unchanged on Monday, 27 July 2009, after gyrating either sides throughout the day. The BSE 30-share Sensex slipped 3.92 points or 0.03% to 15,375.04 and the S&P CNX Nifty was up 3.75 points or 0.08% to 4,572.30.
Indices settled with modest losses on Tuesday, 28 July 2009 after swinging wildly either ways during the course of the day. 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. The BSE 30-share Sensex was down 43.10 points or 0.28% to 15,331.94 and the S&P CNX Nifty was down 8.20 points or 0.18% to 4,564.10
A sell-off in Chinese stocks on Wednesday, 29 July 2009, amid speculation the central bank is poised to order lenders to set aside larger reserves, triggered a slide in stocks across emerging markets including India. The BSE 30-share Sensex lost 158.48 points or 1.03% to 15,173.46 and the S&P CNX Nifty fell 50.60 points or 1.11% to 4,513.50
Strong Q1 June 2009 earnings from State Bank of India (SBI) and Mahindra & Mahindra (M&M) and firm global stocks helped the key benchmark indices snap a three day losing streak on Thursday, 30 July 2009. The BSE 30-share Sensex rose 214.50 points or 1.41% to 15,387.96 and the S&P CNX Nifty was up 57.95 points or 1.28% to 4,571.45.
Strong global cues and better-than-expected Q1 June 2009 earnings of India Inc triggered surge in the key benchmark indices on Friday, 31 July 2009. The BSE 30-share Sensex gained 282.35 points or 1.83% to 15,670.31, its highest closing since 17 June 2008. The S&P CNX Nifty rose 65 points or 1.42% to 4,636.45.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 2.81% to Rs 1957.10 in the week. Reliance Natural Resources (RNRL) chairman Anil Ambani on 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.
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.
India's largest FMCG company by sales Hindustan Unilever rose 3.23% to Rs 291.20, after striking a 52-week high of Rs 306 on 28 July 2009. The company's 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 on 28 July 2009.
Auto stocks were in demand. India's largest truck market by sales Tata Motors gained 12.86% after net profit rose 57.54% 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 session on 27 July 2009.
India's top small car maker by sales Maruti Suzuki India gained 2.57% to Rs 1413.25 after striking a record high of Rs 1428.65 on 31 July 2009. The company had announced strong Q1 June 2009 results during market hours on 23 July 2009.
India's largest tractor maker by sales Mahindra & Mahindra rose 3.12% to Rs 856.80 after hitting a 52-week high of Rs 892 on 31 July 2009. The company's net profit rose 151.63% to Rs 400.80 crore on 28.04 % rise in total income to Rs 426.61 crore in Q1 June 2009 over Q1 June 2008. The results for the current quarter include the figures of the erstwhile subsidiaries Mahindra Holdings and Finance and Punjab Tractors which were merged with the company. Hence, the figures of the current quarter are not comparable with those of the previous year's quarter. The results were announced after market hours on Thursday, 30 July 2009.
Metal stocks gained on firm metal prices in the London Metal Exchange. India's largest private sector steel maker by sales Tata Steel gained 5.18% even as 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 29 July 2009.
Steel Authority of India (up 2.33%), and Hindalco (up 6.94%), National Aluminium Company (up 2.82%), gained.
India's largest copper market by sales Sterlite Industries slipped 1.23% after net profit fell 68.5% to Rs 112.70 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on 29 July 2009.
IT stocks rose on the back of robust Q1 earnings from IT pivotals in the past few days. India's second largest IT firm by sales Infosys rose 3.02%. India's largest IT exporter by sales TCS jumped 9.25%. India's third largest IT exporter by sales Wipro spurted 6.80%.
India's largest cellular services provider by sales Bharti Airtel fell 1.19%. 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.
India's largest power generation company by sales NTPC rose 2.25% 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 on 27 July 2009.
Other power generation firms gained as strong response to the Adani Power initial public offer lifted sentiment for the sector. The Adani Power issue was oversubscribed 21.51 times by 17:00 IST on the last day of the issue on 31 July 2009.
Reliance Infrastructure (up 2.91%), Tata Power (up 11.02%), and CESC (up 7.45%), advanced.
Bank stocks were mixed. India's largest private sector bank by net profit ICICI Bank slipped 1.02%. The bank's net profit rose 20.63% to Rs 878.22 crore on a 2.2% decline in operating income to Rs 9223.32 crore in Q1 June 2009 over Q1 June 2008. The bank reported its earnings on 25 July 2009. However, India's second largest private sector bank in terms of operating income HDFC Bank rose 3.30%.
India's biggest commercial bank in terms of branch network State Bank of India (SBI) rose 6.80% after net profit jumped 42.02% to Rs 2330.37 crore on 29.86% rise in total income to Rs 21041.51 crore in Q1 June 2009 over Q1 June 2008. The results hit the market during trading hours on 30 July 2009.
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 on 28 July 2009.
India's largest real estate developer by sales DLF rose 0.64%. The company's net profit surged 236.23% to Rs 100.40 crore on a 652.69% spurt in sales to Rs 417.97 crore in Q1 June 2009 over Q4 March 2009. The company announced the result after market hours on 30 July 2009.
Unitech (up 3.39%), Housing Development & Infrastructure (up 5.16%), Parsvnath Developers (up 8.04%), advanced.
Sensex strikes 13-month high on better-than-expected Q1 results
The key benchmark indices surged for the second straight day as gains in Asian stocks, higher US index futures and better-than-expected Q1 June 2009 earnings of India Inc boosted sentiment. The BSE 30-share Sensex rose 282.35 points or 1.83%. The barometer index today struck its highest closing level in more than 13 months. Banking
, oil & gas, IT and FMCG stocks rose. But realty stocks fell in volatile trade. The market breadth, indicating the overall health of the market weakened in the second half of the trading session compared to earlier strong breadth.
The Sensex is up 6023 points or 62.43% in calendar year 2009 as on 31 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,509.91 points or 92.02% as on 31 July 2009.
Coming back to today's trade, a bout of intraday volatility was witnessed. After surging in morning trade on firm Asian stocks, the market pared gains in early afternoon trade. The market firmed up again later. The market once again pared gains in mid-afternoon trade. The market surged in late trade on rally in RIL.
The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 1921 companies rose 20.5% to Rs 71437 crore on 5.1% fall in sales to Rs 673497 crore in Q1 June 2009 over Q1 June 2008. The earnings season gets over today, 31 July 2009.
But a weak monsoon remains a cause of concern. India's monsoon rains were 18% below normal in the week to 29 July 2009, having been above normal in the preceding two weeks. Total rainfall since the beginning of June was 19% below average, the India Meteorological Department said on Thursday. On the flip side, water levels in India's 81 main reservoirs rose to 35% of capacity in the week to 30 July 2009, up from 23% a week earlier and 31% a year ago, government data showed. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
Farm Minister Sharad Pawar on Friday, 31 July 2009, said that summer-sown crops such as sugarcane, oilseeds and cotton have covered more than half the normal area, and sowing is likely to rise. He also said weak monsoon rains would have a marginal impact on inflation.
World equity funds garnered $9.5 billion in the week ending 29 July 2009, according to data the latest data from global fund tracker EPFR Global. The inflow was the highest since June 2008.
Emerging markets continued to be the darling of investors, with dedicated BRIC (Brazil, Russia, India and China) equity funds seeing net inflows for a 19th straight week. India equity funds took in a year-to-date high of $211 million in the most recent week, while China and Greater China stock funds saw $711 million in fresh money.
European equities were flat after moving between gains and losses in intraday trade. Key benchmark indices in France and UK were up by between 0.01% to 0.09%. Germany's DAX fell 0.07%.
Asian stocks climbed today as better-than- expected earnings and a rally in commodities lifted confidence the global economy is headed towards recovery. Key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.72% to 2.72%.
Trading in the US index futures indicated Dow could rise 36 points at the opening bell today, 31 July 2009.
US markets rallied on Thursday, 30 July 2009, logging the highest close since November 2008, despite a late-afternoon pullback. It was the highest close for the Dow and S&P since November 2008, and for the Nasdaq, since October 2008.
The Dow Jones Industrial Average rose 83.74 points to close at 9154.46. The S&P jumped 1.2% to close near the 1,000 mark and the Nasdaq added 0.84% to finish near the 2,000 mark. In economic news, the number of US workers staying on jobless rolls fell to the lowest level in three months while the four week moving average for new claims dropped by 8250 to 559000, the lowest level since late January 2009.
The BSE 30-share Sensex was up 282.35 points or 1.83% to 15,670.31 its highest closing since 17 June 2008. The Sensex rose 344.85 points at the day's high of 15,732.81 in morning trade. The Sensex rose 61.51 points at the day's low of 15,449.47 in early trade.
The S&P CNX Nifty was up 65 points or 1.42% to 4,636.45 its highest closing since 11 June 2009. Nifty August 2009 futures were at 4636.05 at almost the same level as the spot closing of 4636.45.Turnover on NSE's futures & options (F&O) segment was Rs 57151.46 crore, much lower than Rs 94477.38 crore on Thursday, 30 July 2009.
BSE clocked a turnover of Rs 6,249 crore, higher than Rs 6,065.04 crore on Thursday, 30 July 2009.
The market breadth, indicating the overall health of the market, was positive. But the breadth weakened when compared to a strong breadth earlier in the day. On BSE, 1401 shares advanced as compared with 1,299 that declined. A total of 101 shares remained unchanged.
Among the 30-member Sensex pack, 23 rose while rest declined.
The BSE Mid-Cap index was up 1.17% and the BSE Small-Cap index was up 0.03%. Both these indices underperformed the Sensex.
The BSE FMCG index (up 3.17%), the BSE Oil & Gas index (up 2.65%), the BSE Bankex (up 1.92%), outperformed the Sensex.
The BSE Realty index (down 1.36%), the BSE Healthcare index (up 0.39%), the BSE Power index (up 0.47%), the BSE TECk index (up 0.49%), the BSE Capital Goods index (up 1.05%), the BSE PSU index (up 1.19%), the BSE Auto index (up 1.24%), the BSE Metal index (up 1.47%), the BSE Consumer Durables index (up 1.6%), the BSE IT index (up 1.81%), underperformed the Sensex.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 3.01% to Rs 1,957.10 on bargain hunting after a recent sharp fall. The Supreme Court on Thursday said, it will give a date on 1 September 2009 to expedite the decision pertaining to the Krishna-Godavari basin gas dispute between Mukesh Ambani's Reliance Industries (RIL) and Anil's Ambani's Reliance Natural Resources (RNRL). RNRL counsels Mukul Rohatgi and Mahesh Agrawal sought an early decision in the case.
RNRL chairman Anil Ambani has said the gas supply dispute between RIL and Reliance Natural Resources (RNRL) vitally affects public interest and will seek an early judgment in the case. The matter concerns power projects of national importance representing a capacity of 12,000 megawatt (MW) and an investment of over Rs 50,000 crore and affects the interests of over 10 million shareholders, he said.
The Supreme Court on 20 July 2009, asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. The court has scheduled next hearing on the dispute over the gas supply to Reliance Natural Resources (RNRL) on 1 September 2009.
RNRL has asked the Supreme Court to dismiss the government's affidavit on the dispute, even as the petroleum ministry has suggested that the court treats the pact between the two brothers null and void. The dispute concerns supply of natural gas from RIL's field, off the Andhra Pradesh coast, as also the price at which Reliance Natural Gas will get the fuel for power projects within the group.
In reply to the lawsuit filed by Reliance Industries challenging the Bombay High Court order, RNRL has said the government has no role to play in the private gas sharing dispute, and certainly not as a party to the row.
Oil exploration pivotals rose after US crude futures bounced back on Thursday, ending nearly 6.4% higher to reverse losses suffered in the previous session as Wall Street sizzled and the dollar edged lower. India's largest state-run oil exploration firm by sales ONGC rose 5.91%. Cairn India rose 1.33%. On the New York Mercantile Exchange, September crude settled up $3.59, or 5.67%, at $66.94 a barrel. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.
FMCG stocks rose on improvement in India's annual monsoon in July 2009 after a dry spell in June 2009. FMCG firms derive substantial revenue from rural sector. Britannia Industries, ITC, Dabur India, REI Agro, United Spirits, Tata Tea, rose by between 0.84% to 3.27%.
India's largest FMCG company by sales Hindustan Unilever rose 3.32%. The company reported 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 during trade hours on Tuesday, 28 July 2009.
Bank stocks rose on strong Q1 results from State Bank of India, India's biggest commercial bank in terms of branch network. State Bank of India (SBI) rose 5.29% extending Thursday's 4.37% gains as its net profit jumped 42.02% to Rs 2330.37 crore on 29.86% rise in total income to Rs 21041.51 crore in Q1 June 2009 over Q1 June 2008. The results hit the market during trading hours on Thursday 30 July 2009.
India's second largest private sector bank in terms of operating income HDFC Bank rose 2.73% as its ADR rose 3.93% on Thursday. India's largest private sector bank in terms of operating income ICICI Bank rose 0.49% as its ADR rose 4.47% on Thursday.
Rate sensitive realty shares fell 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 fell 1.48% even as net profit surged 236.23% to Rs 100.40 crore on a 652.69% spurt in sales to Rs 417.97 crore in Q1 June 2009 over Q4 March 2009. The company announced the result after market hours on Thursday. 30 July 2009. Unitech, Indiabulls Real Estate, Phoenix Mills and Omaxe fell by between 1.35% to 3.57%.
India's largest mobile telecom player by sales Bharti Airtel fell 3.06% on reports the merger deal between Bharti Airtel and South Africa's MTN is likely to extended to September this year. The two companies could extend the exclusivity period for discussion by a few weeks. The original timeline for discussions expires on 31 July 2009. In the event of the deal going through, the Bharti-MTN combined entity will be the third-largest wireless group globally.
India's second largest mobile services provider by sales Reliance Communications fell 2.11%, reversing early gains, ahead of its Q1 June 2009 results. The consolidated net profit rose 8.3% to Rs 1637 crore in Q1 June 2009 over Q1 June 2008. The results were announced after market hours today.
IT stocks rose on better-than-expected Q1 June 2009 results by IT pivotals in the past few days. India's second largest IT exporter by sales Infosys rose 2.66% as its American depository receipt (ADR) rose 1.56% on Thursday. India's thirds largest IT exporter by sales Wipro rose 0.43% as its ADR rose 1.77% on Thursday. But India's largest IT exporter by sales TCS fell 0.68%.
Capital goods and construction stocks rose on government's thrust on infrastructure sector in Union Budget 2009-2010. Nagarjuna Construction Company, Hindustan Construction Company, Era Infra Engineering, Gayatri Projects and IVRCL Infrastructure & Projects rose by between 1.95% to 5%.
From capital goods space, Bharat Heavy Electricals, Larsen & Toubro, Punj Lloyd, ABB, BEML, Siemens rose by between 0.57% to 1.55%.
Some power stocks fell on profit taking even after a strong response to the Adani Power initial public offer (IPO) which opened for subscription on Tuesday, 28 July 2009. Reliance Power, Power Grid Corporation Of India, NTPC, CESC fell by between 0.47% to 3.24%.
By 16:00 IST on final day of the bidding today, 31 July 2009, the Adani Power IPO was subscribed 21.37 times.
Reliance Infrastructure rose 1.69% after net profit rose 25.35% to Rs 316.57 crore in Q1 June 2009 over Q1 June 2008. The company announced result after market hours on Thursday, 30 July 2009.
Tata Power Company rose 0.63% after its net profit rose 144.19% to Rs 396.97 crore in Q1 June 2009 over Q1 June 2008. The result hit the market at the fag end of the trading session
Auto stocks rose after posting strong Q1 June 2009 results in the past few days. India's largest truck market by sales Tata Motors rose 6.61%. The company on Tuesday, 28 July 2009, 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.
India's largest tractor maker by sales Mahindra & Mahindra rose 0.56% extending Thursday's gains after net profit rose 151.63% to Rs 400.80 crore on 28.04 % rise in total income to Rs 426.61 crore in Q1 June 2009 over Q1 June 2008. The results for the current quarter include the figures of the erstwhile subsidiaries Mahindra Holdings and Finance and Punjab Tractors which were merged with the company. Hence, the figures of the current quarter are not comparable with those of the previous year's quarter. The results hit the market during trading hours on Thursday, 30 July 2009.
India's top small car maker by sales Maruti Suzuki India rose 1.11%.
But, India's largest bike maker by sales Hero Honda Motors fell 2.08%. 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 the Q1 result after market hours on Wednesday, 29 July 2009.
Metal stocks rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 4.02% on Thursday, 30 July 2009.
India's largest private sector steel maker by sales Tata Steel rose 2.12%. The company's 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 on Wednesday, 29 July 2009.
But, India's second largest steel maker by sales Steel Authority of India fell 0.11%. Net profit fell 27.74% to Rs 1326.09 crore in Q1 June 2009 over Q1 June 2008. The company announced the result during trading hours on Thursday.
India's largest copper market by sales Sterlite Industries rose 2.91%. Net profit fell 68.5% to Rs 112.70 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on Wednesday, 29 July 2009.
India's largest aluminum maker by sales Hindalco Industries rose 6.65% after the company reported lesser-than-expected 31% fall in net profit to Rs 480.56 crore in Q1 June 2009 over Q1 June 2008. The result hit the market in mid-afternoon trade.
India's second largest aluminum maker by sales National Aluminum Company rose 5.15% even as net profit fell 75.92% to Rs 126.45 crore in Q1 June 2009 over Q1 June 2008.
Sugar stocks fell on concerns sugar prices will fall on higher supplies after the government extended duty-free imports of both raw and refined sugar beyond 31 July 2009. Bajaj Hindusthan, Shree Renuka Sugars and Dhampur Sugars fell by between 0.89% to 3.88%.
Mahindra Satyam clocked highest volume of 1.73 crore shares on BSE. Unitech (1.65 crore shares), Suzlon Energy (1.62 crore shares), Ispat Industries (1.36 crore shares) and Cals Refineries (1.27 crore shares) were the other volume toppers in that order.
Reliance Industries clocked highest turnover of Rs 198.55 crore on BSE. State Bank of India (Rs 193.77 crore), Mahindra Satyam (Rs 181.9 crore), DLF (Rs 176.71 crore) and Aban Offshore (Rs 164.20 crore) were the other turnover toppers in that order.
Adani Power IPO receives huge investor response
IPO bid 21.5 times
The Adani Power initial public offering (IPO) got overwhelming response. The IPO was subscribed 21.51 times by 17:00 IST on the last day of IPO today, 31 July 2009. The IPO received bids for 535.16 crore shares as compared to 24.87 crore shares on offer. Of the total issue size of 30.16 crore shares, 5.28 crore shares were allotted to anchor investors, a day before the opening of the issue.
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.
As per Securities and Exchange Board of India (Sebi) norms, there is a 30-day lock-in for anchor investors.
Adani Power had fixed price band of Rs 90 to Rs 100 per equity share for its initial public offering (IPO). The Adani Power issue is the second biggest public offer after that of Reliance Power in 2008.
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.
Pre Session Commentary - July 31 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened in the positive territory. There was a lot of short covering in yesterday''s trade due to F&O expiry, which helped benchmark indices mark gains. There is some positive momentum prevailing across the world which will benefit to bolster the domestic sentiments as well. Broad based buying effort could emerge during the day''s trade.
On Thursday, domestic markets closed higher. The domestic market rebounded sharply from initial losses to close near day’s high after exhibiting instability during the early trading hours. Speculators contributed to upward movement as indulged in covering short positions on the last day of the expiry of the July contracts in derivatives. Firm trading in European markets along with recovery in Asian markets and higher US index futures also added to the positive sentiments. In addition, market gained ground during afternoon trade after initial slide, also on encouraging first-quarter earnings by State Bank of India. The bank reported 42.03% rise in its net profit in first quarter. Meanwhile, inflation for week ended July 18 it came in at -1.54% as compared to -1.17% for the previous week ended July 11, 2009. The BSE Sensex ended above 15,350 level and NSE Nifty closed above 4,550 mark. Today domestic markets are likely to trade positive.
The BSE Sensex closed higher by 241.50 points or (1.41%) at 15,387.96 and NSE Nifty ended up by 57.95 points or (1.28%) at 4,571.45. BSE Mid Caps and Small Caps closed with gains 29.31 and 49.26 points at 5,506.40 and 6,204.01 respectively. The BSE Sensex touched intraday high of 15,409.91 and intraday low of 15,065.48.
On Thursday, the US stock markets closed higher. Better than expected earnings report and lack of negative news helped markets gain at broader level. The markets witnessed broad based buying effort along with shot covering. The material sector was in the limelight supported by higher commodity prices and also Dow Chemical (DOW 21.51, +1.24). Visa (V 67.05, +0.27) and MasterCard (MA 194.17, +5.62) both reported upside earnings results of their own and also provided support to the financial sector. The northward movement in the markets was supported by news that the four-week moving average for initial jobless claims fell to its lowest level in months, even though weekly claims climbed more than expected. Continuing claims declined more than expected for another straight week. Continuing claims now stand at levels not seen since April, but many economists caution that the labor market remains far from good. US light crude oil futures for September delivery closed at $67 per barrel up by 5.8% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 83.74 points at 9,154.16, NASDAQ index inclined by 16.54 points to 1,984.30 and the S&P 500 (SPX) closed higher by 11.45 points at 986.60.
Today major stock markets in Asia are trading positive. Hang Seng is up by 419.65 points at 20,653.73. Shanghai Composite is up by 40.289 points at 3,361.849. Japan''s Nikkei is trading up by 171.77 points at 10,336.98. Strait Times is up by 17.20 points at 2,653.39.
Indian ADRs ended in green on Thursday. In the banking space, ICICI Bank was up 4.47% and HDFC Bank was up 3.93%. In the telecom space, Tata Communication was up 2.99% and MTNL was up 1.86%. In the IT space, Satyam Computers was up 2.18%, Infosys was up 1.56%, Wipro was up 1.77% and Patni Computers was up 20.45%. In other sectors, Sterlite Industries was up 5.33%, Tata Motors was up 3.15% and Dr Reddy''s Labs was up 0.9%.
The FIIs on Thursday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 2,851.70 Crore, while the gross equity sold stood at Rs 2,712.60 Crore and gross debt purchased stood at Rs 387.20 Crore, while gross debt sold stood at Rs 0.00 Crore. The net investment of equity reported was Rs 139.10 Crore and net debt was Rs 387.20 Crore.
On Thursday, the partially convertible rupee ended at Rs 48.34/35, 0.16% stronger than its previous close at 48.42/43. The rupee gained on the back of phenomenal resurgence in the local stock markets.
On BSE, total number of shares traded were 39.47 Crore and total turnover stood at Rs 6,065.04 Crore. On NSE, total number of shares traded were 103.33 Crore and total turnover was Rs 23,186.09 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 69415188 shares, followed by Suzlon Energy with 47803705, Tata Steel with 19407942, SAIL with 18185228 and DLF with 14563513 shares.
On NSE Future and Options, total number of contracts traded in index futures was 869901 with a total turnover of Rs 19,296.52 Crore. Along with this total number of contracts traded in stock futures were 1066247 with a total turnover of Rs 32,282.30 crore. Total numbers of contracts for index options were 1783295 with a total turnover of Rs 40,648.73 Crore and total numbers of contracts for stock options were 75027 and notional turnover was Rs 2,249.84 Crore.
Today, Nifty would have a support at 4,598 and resistance at 4,672 and BSE Sensex has support at 15,412 and resistance at 15,575.
Market may extend Thursday's gains
The key benchmark indices may extend Thursday's (30 July 2009) gains tracking firm global cues. Strong Q1 June 2009 earnings of India Inc announced so far will support market.
Strong Q1 June 2009 earnings from State Bank of India (SBI) and Mahindra & Mahindra (M&M) and firm global stocks helped the key benchmark indices snap a three day losing streak on Thursday, 30 July 2009. The BSE 30-share Sensex rose 214.50 points or 1.41% to 15,387.96, its highest closing since 11 June 2009 on Thursday. Volatility was high as traders rolled over positions from July 2009 contracts to August 2009 contracts in the futures & options segment ahead of the expiry of July 2009 contracts on 30 July 2009.
As per the provisional figures on BSE, foreign funds bought shares worth Rs 366.81 crore and domestic funds sold shares worth Rs 286.67 crore on 30 July 2009.
The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 1438 companies rose 23% to Rs 68,806 crore on 5.3% fall in sales to Rs 645438 crore in Q1 June 2009 over Q1 June 2008. Reliance Communications, Tata Power Company, Aban Offshore, ABB, Adlabs Films, Dish TV, Divi's Laboratories, Orchid Chemicals, Anant Raj Industries, Sterlite Biotech, Federal Bank, Suzlon Energy, Gammon India, Reliance Capital, MTNL among others will announce their quarter ended June 2009 result today.
A weak monsoon remains a cause of concern. India's monsoon rains were 18% below normal in the week to 29 July 2009, having been above normal in the preceding two weeks. Total rainfall since the beginning of June was 19% below average, the India Meteorological Department said on Thursday. But water levels in India's 81 main reservoirs rose to 35 percent of capacity in the week to July 30, up from 23 percent a week earlier and 31 percent a year ago, government data showed.More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
Asian stocks climbed today as better-than- expected earnings and a rally in commodities lifted confidence the global economy is headed toward recovery. The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.43% to 1.77%.
The US markets rallied on Thursday, 30 July 2009 logging the highest close since November, despite a late-afternoon pullback. It was the highest close for the Dow and S&P since November 2008, and for the Nasdaq, since October 2008.
At closing bell, the Dow Jones rose 83.74 points to close at 9154.46. The S&P jumped 1.2% to close near the 1,000 mark and the Nasdaq added 0.84% to finish under 2,000.In economic news, the number of US workers staying on jobless rolls fell to the lowest level in three months government data showed, while the four week moving average for new claims dropped by 8250to 5,59000 lowest level since late January.
Grey Market - NHPC or Adani or both ?
Excel Infoways Ltd. 85
5 to 7
Raj Oil Mills Ltd. 100 to 120
Discount
Adani Power 90 to 100
6 to 6.50
NHPC 30 to 36
9 to 9.50
Firm global indices indicates positive open
After posting gains in the last sessions, the bias for the market may remain positive. The market is expected to make further headways on surging international indices and prevailing strong bullish sentiment. However, investors should remain cautious on account of the prevalence of a intra-day volatility. Among the local indices, the Nifty could test higher levels in the 4610-4650 range and has a support in the 4525-4485 range. The Sensex on the downside may slip to 15200 and may face resistance at 15463.
Major US indices roseThursday, hitting their highest levels in nearly 9 months, as investors eyed the latest batch of better-than-expected profits and forecasts and a report that suggested the labor market is starting to stabilize. While the Dow Jones flared up by 84 points at 8154, the Nasdaq moved up by 17 points to close at 1984.
All the Indian ADRs traded firm on the US bourses. Patni Computers led the pack with gains of over 20% while, ICICI Bank, HDFC Bank, Tata Motors, Rediff, Satyam, VSNL jumped over 1-4% and Infosys, Wipro, MTNL and Dr Reddy's closed with the marginal gains.
Crude oil prices raised, with the Nymex light crude oil for September delivery gaining by $3.59 to close at $66.94 a barrel. In the commodity space, the Comex gold for December delivery raised $7.60 to settle at $937.30 an ounce.
ICSA India
We recommend a buy in ICSA India from a short-term perspective. It is evident from the charts that the stock was in a medium-term downtrend from a June high of Rs 214 to a July low of Rs 138. The band between Rs 138 and Rs 150 is a key long-term support. The stock is currently trading above its 21 and 50-day moving averages. Moreover, it appears to have resumed its intermediate-term uptrend that has been in place since the March low of Rs 48. The daily relative strength index (RSI) has entered in the bullish zone and the weekly RSI is on the brink of entering into this zone. Besides, both daily and weekly moving average convergence and divergence indicators are hovering in the positive territory. From the short-term perspective we are bullish on the stock. We expect its rally to prolong until it knocks our price target of Rs 206 in the forthcoming trading sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 177.
via BL
Daily News Roundup - July 31 2009
Bombay High Court allows RIL to amend plea in NTPC suit (ET)
Supreme Court declines RNRL’s plea for September 1 settlement (BS)
Software firms such as Infosys, Wipro are in talks with ECGC for risk cover against payment dues from overseas customers (Mint)
SAIL may hit capital market through another public offering this year to raise funds for its ongoing expansion program (ET)
Cairn to start production from its Rajasthan desert field of Mangala next month (ET)
Essar Power has tied-up debt required for Rs48.6bn, 1200MW thermal power plant in Madhya Pradesh (ET)
Tata Communication bags an outsourcing deal from Gotalk, an Australia-based communication company (BS)
BoB is planning to foray into private equity space (BS)
Bharat Forge and MIDC join hands for a multi-product SEZ to be developed at Khed in Pune district (ET)
UTV founder may sell minority stake in UTVi, its English news channel (BS)
Mphasis plans to double its BPO employees over the next 2-3 years from the current strength of 18,000 (BS)
Subex has moved about 20% of work being done by its subsidiaries in Europe and America to India (BS)
Apollo Hospitals to invest US$175mn on five new specialty hospitals for children (BS)
Inflation for the week ended July 18 was at -1.54% (ET)
Approvals for overseas borrowings by Indian corporates have touched almost US$2bn in June 2009 (ET)
Undistributed dividends of foreign entities controlled or owned by Indian companies will be taxed in the near future (ET)
STT collection clocks positive growth in July 2009 after nine months of yoy decline (ET)
Government will award road projects worth Rs2,000bn in the next two years (ET)
Monsoon progress still weak so far with deficit standing at 19% (FE)
The world’s on a high!
He who would leap high must take a long run.
After consolidating for the first three days, the bulls are back on their feet. The undertone remains broadly positive though some softening shouldn’t surprise anyone. Today, the key indices could see a sprinted start. US stock benchmarks have made their highs for the year. The Nikkei in Japan too has hit a new peak for 2009.
Global investors responded to a slew of better than expected earnings and macroeconomic data in late July by pumping fresh money into a broad range of asset classes. EPFR Global-tracked equity funds posted inflows of $9.5bn - the highest weekly tally since mid-June, 2008. The economic picture is brightening up, both in India and abroad. Earnings have exceeded expectations across the globe. Risk appetite seems to be back in flavour. Liquidity was never an issue, though too much of it is definitely not healthy.
The feel good has its flip side too. Crude oil and other commodities are also climbing. Food prices remain elevated despite headline WPI inflation being in the red for seven successive weeks. Monsoon remains a joker in the pack and could fuel inflationary expectations if rain Gods refuse to relent.
The local bulls have to retain their energy for a longer run before leaping to new highs. Companies too have to show meaningful appreciation in the topline to warrant an upgrade. Economic data also has to be persistently good. All in all, we will continue to witness fluctuations in stock prices over the next few weeks and months. It is not going to be a one-way street where only the bulls will dominate. The bears might also get opportunities to stage a come back. A big crash in not expected and markets' direction will hinge on daily dose of news.
Results Today: Aban Offshore, ABB, Adlabs, Anant Raj, Arvind, Aurobindo Pharma, Bombay Dyeing, Britannia, Deccan Chronicle, Dish TV, Divi's Lab, Dredging Corp., Edelweiss, Federal Bank, Gammon India, GMR Infra, GE Shipping, Gujarat Flurochemicals, Gulf Oil, Hindalco, Hotel Leela, Indiabulls Financial, Indian Hotels, MTNL, NALCO, Orchid Chem, RCOM, Reliance Capital, Suzlon, Syndicate Bank, Tata Power, TVS Motor, Unitech and Videocon.
FIIs were net buyers of Rs3.67bn in the cash segment on Thursday on a provisional basis while the local funds pulled out Rs2.87bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs3.39bn. On Wednesday, the foreign funds were net buyers of Rs1.39bn in the cash segment. Mutual Funds were net sellers on the same day at Rs2.92bn.
US stocks rallied on Thursday, with the key indices hitting their highest levels in nearly nine months. Investors welcomed the latest batch of better-than-expected profits and forecasts besides a report that suggested that the labor market is starting to stabilize.
The Dow Jones Industrial Average rose 83 points, or 0.9%, to 9,154.46, ending at its best level since Nov. 4. It was also the highest close for the blue-chip index in 2009. The S&P 500 index added 11 points, or 1.2%, to 986.75, ending at its highest point since Nov. 4. The Nasdaq gained 16 points, or 0.8%, to 1,984.30, its highest close since Oct. 1. The major gauges had managed bigger gains earlier in the session, but lost a little momentum by the close.
Stocks gains were broad-based Thursday, with 25 of 30 Dow components rising.
Shares of Dow component GE gained nearly 7%. Goldman Sachs upgraded it to "buy" from "neutral" after legislators appeared to back down on the question of whether GE should separate itself from its troubled finance unit GE Capital. A variety of financial shares gained.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.60% from 3.66% late on Wednesday.
US light crude oil for September delivery rose $3.57 to settle at $66.72 a barrel on the New York Mercantile Exchange.
In currency trading, the dollar gained versus the euro and fell against the Japanese yen.
COMEX gold for December delivery rose $7.60 to settle at $937.30 an ounce.
The number of Americans filing unemployment claims for a week or more, a measure known as continuing claims, slipped by more than expected. According to a Labor Department report, continuing claims dipped to 6.2 million last week, from a revised 6.25 million the previous week, for their lowest level since mid-April and short of forecasts for 6.3 million.
The continuing claims report overshadowed the regular weekly jobless claims report, which showed a bigger-than-expected rise to 584,000. However, that rise was largely related to seasonal issues related to auto plant shutdowns.
Two Dow components reported results on Thursday morning. Oil behemoth Exxon Mobil reported a steep drop in second-quarter income due to weaker demand and falling oil and gas prices. Weaker quarterly earnings missed estimates on weaker revenue that topped estimates. Shares fell 1%.
Dow component Travelers also reported weaker profit that missed forecasts. But the financial company also boosted its full-year earnings forecast. Shares fell 2%.
Among other companies reporting results, telecom Motorola posted higher quarterly earnings that topped forecasts on weaker revenue that missed. The company shipped 14.8 million phones in the quarter, nearly half what it shipped a year ago, but more than what analysts expected. Shares gained 9.4%.
Friday brings the biggest economic report of the week, the first reading on second-quarter gross domestic product growth. GDP is expected to have shrank at a 1.5% annualized rate, according to forecasts. GDP shrank at a 5.5% annualized rate in the first quarter.
The Chicago PMI, a regional reading on manufacturing, is due shortly after the start of trading. Quarterly results from Dow component Chevron.
European equities staged a broad-based rally on Thursday, hitting a fresh eight month high as a string of mostly well-received corporate earnings convinced investors the recent run should continue. The pan-European Dow Jones Stoxx 600 index rose 2.2% to close at 225.25, taking out the previous 2009 closing high set on Monday.
On a regional level, the French CAC-40 index climbed 2.1% to settle at 3,435.49, the UK's FTSE 100 index rose 1.8% to end at 4,631.61 and Germany's DAX index advanced 1.7% to finish at 5,360.66..
After consolidating in the past couple of trading session, bulls were back in action on F&O expiry. After starting off on a flat note, markets gains momentum as the day progressed. The IT, FMCG, Banking and the Telecom stocks were among the top gainers. Even the Mid-Cap and the Small-Cap stocks were in demand which saw the NSE Nifty ends above the 4550 levels yet again.
However, the Oil & Gas, Power and Metals stocks were under pressure.
The BSE Sensex surged 214 points to end at 15,387 after touching a high of 15,410 and a low of 15,065. The index opened at 15,148. The NSE Nifty surged 58 points to shut shop at 4,571.
In Asia, the Nikkei in Japan ended up by 0.5 at 10,165, while Australia's S&P/ASX ended higher by 1.7% at 4,190. The Hang Seng index in Hong Kong was up by 0.5% to end at 20,234. Shanghai index in China gained 1.6% to end at 3,321.
In Europe, stocks were in momentum. The FTSE in the UK was up 1.2% at 4,605. The DAX was up 0.7% 5,305 and the CAC 40 was up 1.1% at 3,405.
Coming back to India, among the BSE sectoral indices, the IT index was the top gainer, gaining 3%, followed by the FMCG index that was up 2.7%. The BSE Bankex index up 2.2% and the BSE Teck index was up 1.5%.
The BSE Mid-Cap index gained 0.5% and the BSE Small-Cap index gained 0.8%.
Within the Sensex, the major gainers were TCS, HUL, Wipro, HDFC, SBI, ICICI Bank and HDFC Bank. Among the major losers were Sun Pharma, BHEL, Reliance Industries, Hindalco and RCom.
Outside the frontline indices, the top gainers included REC Ltd, Mphasis, Ashok Leyland, Tech M, Rolta and OFSS.
Among the big losers in the broader market were Divi’s Lab, PNB, Gujarat NRE, IRB Infra, Titan and Crompton Greaves.
Shares of Great Offshore further gained by 1.6% to Rs465 after ABG Shipyard announced that it raised its open offer price to Rs450 per share from Rs375.
ABG hiked its stake in the Great Offshore by over 5% picking up stake in a block deal from the open market. The block deal takes ABG's total shareholding in the company to 7.32% from 2.02% earlier, added reports.
The stock opened at Rs465 and made an intra-day high of Rs469 and a low of Rs461. Total traded volumes stood at 0.2mn shares.
IOC has posted a net profit of Rs36.82bn for the quarter ended June 30, 2009 where as the same was at Rs4.15bn for the quarter ended June 30, 2008.
Total Income is Rs606.8bn for the quarter ended June 30, 2009 where as the same was at Rs891.4bn for the quarter ended June 30, 2008.
Comparative figures for the quarter ended June 2008 do not include the figures of Bongaigaon Refinery and Petrochemicals Ltd , which was merged with IOC on March 25, 2009. Accordingly, the same are not strictly comparable.
The stock surged 4% to end at Rs556, it had opened at Rs540 and made an intra-day high of Rs464 and a low of Rs540. Total traded volumes stood at 0.38mn shares.
M&M has posted a net profit of Rs4bn for the quarter ended June 30, 2009 as against Rs1.59bn in the same quarter last year. Total income for the reporting quarter is Rs42.66bn versus Rs33.32bn in the quarter ended June 30, 2008.
The results for the current quarter include the figures of the erstwhile subsidiaries Mahindra Holdings & Finance Ltd. and Punjab Tractors Ltd., which merged with the company. Hence, the figures of the current quarter are not comparable with those of the first quarter of the previous fiscal year.
The stock surged 1.2% to end at Rs852, it had opened at Rs845 and made an intra-day high of Rs859 and a low of Rs832. Total traded volumes stood at 0.58mn shares.
SBI posted Net Profit of Rs23303.7mn for the quarter ending on June 30, 2009 against Rs16407.9mn for the quarter ending on June 30, 2008.
Total Income of Rs210415.1mn for the quarter ending on June 30, 2009 against Rs162030.7mn for the quarter ending on June
The stock surged 4% to end at Rs1722, it had opened at Rs1654 and made an intra-day high of Rs1734 and a low of Rs1644. Total traded volumes stood at 0.83mn shares.
SAIL has posted a net profit of Rs13.26bn for the quarter ended June 30, 2009 as compared to Rs18.35bn for the quarter ended June 30, 2008.
The total income has decreased to Rs96.93bn for the quarter ended June 30, 2009 from Rs112.28bn for the quarter ended June 30, 2008.
The stock surged 3% to end at Rs175, it had opened at Rs169 and made an intra-day high of Rs176 and a low of Rs165. Total traded volumes stood at 3.8mn shares.
Nifty August 2009 futures at premium
Turnover drops
Nifty August 2009 futures were at 4578, at a premium of 6.55 points as compared to the spot closing of 4571.45. Turnover in NSE's futures & options (F&O) was Rs 94,477.38 crore, lower than Rs 1,16,508.34 crore on Wednesday, 29 July 2009.
Rollover of Nifty positions from July 2009 contracts to August 2009 contracts was about 60% at the end of Wednesday's (29 July 2009) trading. July 2009 derivative contracts expired today, 30 July 2009.
State Bank of India August 2009 futures were at premium at 1734.50 compared to the spot closing of 1722.80.
Bharat Heavy Electricals August 2009 futures were at premium at 2210.05 compared to the spot closing of 2200.80.
Tata Steel August 2009 futures were at discount at 447.20 compared to the spot closing of 452.15.
In the cash market, the S&P CNX Nifty gained 57.95 points or 1.28% at 4571.45.
Precious metals gather some shine
Gold and silver prices rise with rising crude
Precious metal prices rose on Thursday, 30 July, 2009. Prices shone today as the rebounding crude price and weak dollar increased the appeal of precious metals as a hedge against inflation.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Thursday, gold for August delivery ended at $934.9, higher by $7.7 (0.8%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 1.6%. Year to date, gold prices are higher by 5.5%.
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 (11.5%) since then.
On Thursday, Comex silver futures for September delivery gained 48.2 cents (3.5%) at $13.258 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 Thursday, the dollar index, a six-currency gauge of the greenback's value, rose modestly.
In the crude market, crude prices rose in synchronization with US stocks.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for October delivery closed higher by Rs 45 (0.3%) at Rs 14,696 per 10 grams. Prices rose to a high of Rs 14,715 per 10 grams and fell to a low of Rs 14,631 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 274 (1.25%) higher at Rs 22,153/Kg. Prices opened at Rs 21,945/kg and rose to a high of Rs 22,238/Kg during the day's trading.
Crude claims back yesterday's losses
Prices rise as US stocks cheer economic data
Crude prices ended higher on Thursday, 30 July, 2009. Prices rose today in synchronization with US stocks which welcomed the news of modest rise in initials claims for last week. The weak dollar was also responsible for the rise.
On Thursday, crude-oil futures for light sweet crude for September delivery closed at $66.94/barrel (higher by $3.59 or 5.7%). 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 51% since then. In July, 2009, it has dropped by 4.6% till date. Year to date, in 2009, crude prices are higher by 41.7%.
US stocks registered good gains today after Labor Department reported that initial claims rose last week but the trend fell and fewer people were continuing to collect unemployment checks. The first-time claims for state jobless benefits crept up in the latest week but ws in line with expectations. Initial weekly jobless claims rose by 25,000 to a seasonally adjusted 584,000 during the week ended 25 July, 2009.
EIA reported yesterday that crude supplies rose by 5.1 million barrels to stand at 347.8 million barrels during the week ended 24 July, 2009. The EIA also reported that motor gasoline inventories fell by 2.3 million barrels and distillate supplies rose by 2.1 million barrels last week.
Also at the Nymex on Thursday, August reformulated gasoline rose 13.61 cents, or 7.3%, to $1.9911 a gallon and August heating oil gained 9.72 cents, or 5.8%, to $1.7685 a gallon.
September natural-gas futures rose 21.5 cent, or 6.1%, to $3.763 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 138 (4.45%) at Rs 3,234/barrel. Natural gas for August delivery closed at Rs 181.7/mmbtu, higher by Rs 9.8/mmbtu (5.7%)
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