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Monday, August 03, 2009
Sensex, Nifty end 1.62% higher
Indian bourses, namely the Sensex and the Nifty ended on a firm note. The 30-share index which opened on a flat note, turned volatile in the early trades but the traded on a firm note from the afternoon sessions. Positive opening of the European stocks helped the markets to gain further momentum. On the global front, European stocks advanced as former Federal Reserve Chairman Alan Greenspan said the recession may be ending, Chinese manufacturing expanded and earnings from HSBC Holdings Plc and Barclays Plc boosted banks. UK`s benchmark index FTSE 100 rose 83.59 points, or 1.81%, to trade at 4,691.95 while French benchmark index CAC 40 gained 58.89 points, or 1.72%, to trade at 3,485.16. Germany`s benchmark index DAX advanced 98.11 points, or 1.84% to trade at 5,430.25. (4:30 p.m., IST)
Meanwhile, Asian stocks rose after Mitsubishi UFJ Financial Group returned to profit, manufacturing in China expanded and Goldman Sachs Group lifted its rating for South Korean equities. Japanese benchmark index Nikkei fell 4.36 points, or 0.04%, to end at 10,352.47 and Hong Kong`s Hang Seng index gained 233.93 points, or 1.14%, to end at 20,807.26. Both the 30-share index Sensex , and the broad based Nifty hit their new 52-week highs. The Sensex ended the day with a gain of 253.92 points, or 1.62% at 15,924.23 after touching a high of 15,963.36 and a low of 15,608.40. The broad-based NSE Nifty climbed 74.95 points, or 1.62% at 4,711.40 after hitting a high of 4,723.75 and a low of 4,617.75.
Biggest gainers in the 30-share index were Hindalco Industries (7.98%), Mahindra & Mahindra (6.88%), Reliance Communications (5.17%), Bharat Heavy Electricals (5.15%), Tata Steel (4.52%), and Tata Power Company (4.31%).
On the other hand, Hindustan Unilever (2.25%), ITC (0.70%), HDFC Bank (0.39%), and Housing Development Finance Corporation (0.17%) were the major losers in the Sensex.
Overall market breadth was positive. Out of the total 2,785 shares traded at BSE, 1,761 advanced, 953 declined while 71 remained unchanged.
Auto Sales:
Car market leader Maruti Suzuki`s (India) sales grew 33.4%. The company sold a total of 78,074 vehicles in July 2009. This includes 10,546 units for export. The company had sold a total of 58,543 vehicles in July 2008.
Bajaj Auto`s total two and three wheelers for the month of July 09 remained flat to 192,835 from 193,704 in the same period last year.
New Listing:
Mumbai based Excel Infoways got listed at the bourses today. The shares of the company got listed at a premium of 1.18% at Rs 86 on the National Stock Exchange (NSE).
Meanwhile, shares of the company got listed at a premium of 9.07% against the issue price of Rs 85 on the Bombay Stock Exchange (BSE). BSE has assigned a scrip code of 533090. Shares of the company will trade in the `B` group.
BSE Bulk Deals to Watch - Aug 3 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
3/8/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD B 325654 1115.66
3/8/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD S 325654 1116.23
3/8/2009 532995 AVON CORP S V ENTERPRISES B 652293 11.67
3/8/2009 532995 AVON CORP S V ENTERPRISES S 652293 11.53
3/8/2009 505923 CEEKAY DIAKI VIMESH ZAVERI B 21651 63.52
3/8/2009 533026 CHEMCEL KAMLESH NAHAR S 163465 6.21
3/8/2009 530427 CHOKSI IMAG JAY K PANDYA S 20664 30.10
3/8/2009 532707 DYNEMIC PRO SHANU BHAIYA B 62000 16.05
3/8/2009 532707 DYNEMIC PRO REHWA CORPORATION LIMITED S 95402 16.09
3/8/2009 532707 DYNEMIC PRO RUCHI GLOBEL LIMITED S 106641 16.20
3/8/2009 532984 ENSO SECUT SEEMAJ VANZARA B 105000 22.27
3/8/2009 532984 ENSO SECUT CORPORATE STRATEGIES PVT LTD S 60000 22.30
3/8/2009 532876 EVERONN SYS B R INTERNATIONAL B 234725 371.50
3/8/2009 532876 EVERONN SYS NANDITA MEHTA S 234725 371.50
3/8/2009 533090 EXCEL INFO JMP SECURITIES PVT LTD B 202570 98.09
3/8/2009 533090 EXCEL INFO RAKHI KALPESH BHANDARI B 150000 98.52
3/8/2009 533090 EXCEL INFO NAVEEN TAPARIA B 172736 98.35
3/8/2009 533090 EXCEL INFO BP FINTRADE PRIVATE LIMITED B 125655 98.17
3/8/2009 533090 EXCEL INFO TRANSGLOBAL SECURITIES LTD. B 569381 97.94
3/8/2009 533090 EXCEL INFO MATRIX EQUITRADE PVT. LTD. B 153272 97.37
3/8/2009 533090 EXCEL INFO OPG SECURITIES P LTD B 1658383 97.85
3/8/2009 533090 EXCEL INFO MANSUKH STOCKS BROKERS LTD. B 187973 97.62
3/8/2009 533090 EXCEL INFO R.M.SHARES TRADING PVT.LTD B 114746 97.90
3/8/2009 533090 EXCEL INFO CHOKHANI SECURITIES LTD B 119401 98.55
3/8/2009 533090 EXCEL INFO Naman Securities & Finance Pvt. Ltd. B 317249 97.65
3/8/2009 533090 EXCEL INFO TRANSGLOBAL SECURITIES LTD. S 569381 97.71
3/8/2009 533090 EXCEL INFO MATRIX EQUITRADE PVT. LTD. S 153272 96.85
3/8/2009 533090 EXCEL INFO OPG SECURITIES P LTD S 1658383 97.70
3/8/2009 533090 EXCEL INFO MANSUKH STOCKS BROKERS LTD. S 187973 97.82
3/8/2009 533090 EXCEL INFO R.M.SHARES TRADING PVT.LTD S 114746 97.90
3/8/2009 533090 EXCEL INFO CHOKHANI SECURITIES LTD S 119401 98.43
3/8/2009 533090 EXCEL INFO Naman Securities & Finance Pvt. Ltd. S 317249 97.43
3/8/2009 533090 EXCEL INFO JMP SECURITIES PVT LTD S 157081 97.98
3/8/2009 533090 EXCEL INFO RAKHI KALPESH BHANDARI S 150000 97.71
3/8/2009 533090 EXCEL INFO NAVEEN TAPARIA S 172736 97.75
3/8/2009 533090 EXCEL INFO BP FINTRADE PRIVATE LIMITED S 118155 98.38
3/8/2009 500199 I.G.PETRO FANTASTIC CONSTRUCTIONS LIMITED B 1105490 22.50
3/8/2009 500199 I.G.PETRO VINDHYACHAL MERCANTILE P LTD B 1300000 22.50
3/8/2009 500199 I.G.PETRO GEMBEL TRADE ENTERPRISES LTD B 1399194 22.50
3/8/2009 500199 I.G.PETRO SPINNAKER GLOBAL STRATEGIC FUND LIMITED S 3899194 22.54
3/8/2009 505840 JAIPAN INDUS VHM IMPEX PRIVATE LTD S 52332 47.71
3/8/2009 524826 JUPITER BIOS MACQUARIE BANK LIMITED S 110000 67.41
3/8/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 138813 7.87
3/8/2009 530255 KAY POW PAP OM PARKASH GUPTA B 129147 7.63
3/8/2009 530255 KAY POW PAP KAILASH CHAND GUPTA B 103420 7.92
3/8/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 127613 7.87
3/8/2009 530255 KAY POW PAP OM PARKASH GUPTA S 68592 7.69
3/8/2009 530255 KAY POW PAP KAILASH CHAND GUPTA S 100000 7.41
3/8/2009 530255 KAY POW PAP B.S.KHANDELWAL S 136696 7.72
3/8/2009 505283 KIRLOSAR PN BENGAL FIN & INV PVT L B 150000 349.00
3/8/2009 505283 KIRLOSAR PN HIMALAYA FINANCE & INV C S 150000 349.00
3/8/2009 531731 KUVAM INTL CHETNA UMESH BAJAJ B 20000 14.63
3/8/2009 531731 KUVAM INTL SANJEEV KUMAR GUTPA S 19900 14.63
3/8/2009 507759 LIME CHEM DUKE SPECIAL OPPORTUNITIES FUND LLC S 30881 4.41
3/8/2009 524138 MAHIN COMP RIKEEN PRADEEP DALAL B 25000 65.70
3/8/2009 531996 ODYSSEY CORP BHROSEMAND COMMODITIES PVT. LTD. B 40000 26.90
3/8/2009 531996 ODYSSEY CORP NIJARALI BADRUDIN VASAYA S 40000 26.90
3/8/2009 524136 PEE CEE COSM MEENANAYAN PATEL B 9305 58.42
3/8/2009 524136 PEE CEE COSM MEENANAYAN PATEL S 10160 60.15
3/8/2009 503100 PHOENIX MILL MATTERHORN VENTURES B 3441060 118.50
3/8/2009 503100 PHOENIX MILL EMERGING INDIA TIGER FUND S 3441060 118.50
3/8/2009 526723 RDB INDUST L SAINATH HERBAL CARE MARKETING P.LTD B 102252 99.52
3/8/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PVT LTD B 74099 45.06
3/8/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PVT LTD S 63506 45.02
3/8/2009 524446 SABE ORG GUJ HITESH SHASHIKANT JHAVERI S 181871 39.70
3/8/2009 531898 SANGUINE MD ANGEL INFIN PRIVATE LIMITED S 87150 3.02
3/8/2009 524540 SECUN HEALTH SAURABH KUMARR GANDHI B 49600 27.55
3/8/2009 524540 SECUN HEALTH P SENTHAMARAI B 18000 27.53
3/8/2009 524540 SECUN HEALTH ANIL KUMAR KADAGATHUR S 28000 27.55
3/8/2009 524540 SECUN HEALTH NALINI JAYANTH ALURI S 50000 27.55
3/8/2009 524540 SECUN HEALTH SIVARANJIT PALEMPATI S 42000 27.55
3/8/2009 526133 SUPERTEX IND ARCHI STEEL WIRES PVT.LTD. B 50000 58.66
3/8/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 53304 58.74
3/8/2009 526133 SUPERTEX IND PRABU KUMAR S 49769 58.79
3/8/2009 532375 TIPS INDUSTR RAJIV ARORA B 275672 48.36
3/8/2009 532375 TIPS INDUSTR RAJIV ARORA S 275672 49.50
3/8/2009 532311 TUTIS TECH SUNITA MADHUKAR HARDIKAR B 100010 21.28
3/8/2009 532311 TUTIS TECH BHARTI SURESH PENDHARKAR B 110000 21.30
3/8/2009 532311 TUTIS TECH ABHAY AGARWAL S 130000 21.31
3/8/2009 532311 TUTIS TECH REDROSE CAPFIN PRIVATE LIMITED S 110000 21.04
3/8/2009 522091 UV DER HORST VSL SECURITIES PVT LTD B 28500 16.05
3/8/2009 503657 VEER ENERGY HEMLATA RAMESH HANKARE B 7000 185.94
3/8/2009 503657 VEER ENERGY HEMLATA RAMESH HANKARE S 7000 185.91
3/8/2009 531668 VISION CORPO SIDDHARTHA SRIVASTAVA B 100000 7.35
3/8/2009 531668 VISION CORPO JAGDISH RAMNIKLAL SHETH B 150050 7.35
3/8/2009 531668 VISION CORPO PHDA FINANCIAL SERVICES PVT LTD S 157306 7.35
3/8/2009 531668 VISION CORPO PARASMAL JAIN S 154200 7.35
3/8/2009 531249 WELL PACK PA BHAVESH PRAKASH PABARI S 25000 160.30
3/8/2009 522108 YUKEN INDIA HEMANT S SHETH B 15486 69.50
3/8/2009 522108 YUKEN INDIA HEMANT S SHETH S 16278 69.68
3/8/2009 522108 YUKEN INDIA MATTERHORN ADVISORY SINGAPORE PTE LTD A/C MATTERHORN VENTURE S 28003 69.99
NSE Bulk Deals to Watch - Aug 3 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
03-AUG-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,303957,1112.81,-
03-AUG-2009,AUTOLITIND,Autolite (India) Ltd,JOEL JOHN PINTO,BUY,36698,34.39,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,BP FINTRADE PRIVATE LIMITED,BUY,190803,99.10,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,CHANDARANA INTERMEDIARIES BROKERS P. LTD,BUY,162266,96.89,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,CHOKHANI SECURITIES LTD,BUY,124110,98.06,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,CPR CAPITAL SERVICES LTD.,BUY,130976,97.30,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,DINESH MUNJAL(HUF),BUY,131660,98.76,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,BUY,144387,98.94,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,G RAMAKRISHNA,BUY,182000,98.41,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,INDRA KUMAR BAGRI,BUY,173737,96.63,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,584567,98.01,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,MANIPUT INVESTMENTS PVT. LTD.,BUY,163386,98.65,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,MANSUKH SECURITIES & FINANCE LIMITED,BUY,201225,97.95,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,529609,97.07,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,OASIS MERCHANTS PRIVATE LIMITED,BUY,107097,99.62,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,PRASHANT JAYANTILAL PATEL,BUY,202097,98.22,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,R.M. SHARE TRADING PVT LTD,BUY,116674,97.40,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,SANJAY BHANWARLAL JAIN,BUY,167703,97.90,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,SAVEREY PADMANABHA RAO BALAKRISHNAN,BUY,163913,99.07,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,TANUJ JAIN,BUY,146604,98.32,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,TRANSGLOBAL SECURITIES LTD.,BUY,512602,97.60,-
03-AUG-2009,GRABALALK,Grabal Alok Impex Limited,VECTOR FINANCIAL & MANAGEMENT CONSULTANT,BUY,200000,57.74,-
03-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,15627210,22.95,-
03-AUG-2009,TIPSINDLTD,Tips Industries Limited,RAHUL DOSHI,BUY,94026,49.60,-
03-AUG-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,303957,1113.37,-
03-AUG-2009,AUTOLITIND,Autolite (India) Ltd,JOEL JOHN PINTO,SELL,36698,35.00,-
03-AUG-2009,AUTOLITIND,Autolite (India) Ltd,VISHAL JATIN SHAH,SELL,27000,35.00,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,BP FINTRADE PRIVATE LIMITED,SELL,176303,98.37,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,CHANDARANA INTERMEDIARIES BROKERS P. LTD,SELL,162266,97.44,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,CHOKHANI SECURITIES LTD,SELL,124110,98.24,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,CPR CAPITAL SERVICES LTD.,SELL,130976,97.43,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,DINESH MUNJAL(HUF),SELL,131660,98.21,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,SELL,144387,98.17,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,G RAMAKRISHNA,SELL,182000,97.48,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,INDRA KUMAR BAGRI,SELL,187503,98.42,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,584567,97.99,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,MANIPUT INVESTMENTS PVT. LTD.,SELL,163386,98.73,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,MANSUKH SECURITIES & FINANCE LIMITED,SELL,201225,97.63,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,527609,97.15,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,OASIS MERCHANTS PRIVATE LIMITED,SELL,107097,99.60,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,PRASHANT JAYANTILAL PATEL,SELL,202097,98.02,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,R.M. SHARE TRADING PVT LTD,SELL,116674,97.62,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,SANJAY BHANWARLAL JAIN,SELL,167703,97.88,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,SAVEREY PADMANABHA RAO BALAKRISHNAN,SELL,163913,98.74,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,TANUJ JAIN,SELL,146604,97.71,-
03-AUG-2009,EXCELINFO,Excel Infoways Limited,TRANSGLOBAL SECURITIES LTD.,SELL,512602,97.83,-
03-AUG-2009,GRABALALK,Grabal Alok Impex Limited,J B F INDUSTRIES LIMITED,SELL,250000,57.60,-
03-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,14674309,22.97,-
03-AUG-2009,TIPSINDLTD,Tips Industries Limited,RAHUL DOSHI,SELL,84026,49.65,-
Post Session Commentary - Aug 3 2009
Indian market ended the highly unstable session with smart gains on positive cues from European markets along with higher US index futures. Asian markets also contributed to the recovery during the trading as surveys showed that Chinese factory growth is accelerating in July 2009, for the fourth consecutive month, rising to 52.8, up from 51.8 in June 2009. Market touched the day’s high during the final trading hours on hopeful sentiments led by strong corporate results and encouraging economic data from across the globe. However, earlier during the trading, domestic bourses were unable to sustain in either direction on continuous bouts of buying and selling. The BSE Sensex ended above 15,900 level and NSE Nifty closed above 4,700 mark.
Market opened on upbeat note tracking other Asian markets. However, the US stocks markets ended in mixed on Friday after government report showed softness in consumer spending. The major indices remained in green for most of the session and settled near the unchanged mark after the Q2 GDP showed a less than expected contraction. Further, Indian benchmark turned volatile soon after start on some profit booking at higher level. Market continued to swing between positive and negative terrain till afternoon trade. A government data that showed fall in exports by 27.7% in June, weigh on sentiments. However, stocks managed to recover and witnessed firm trade with higher European markets and firm US index futures. Market reported sharp gains during last trading hours to close near day’s high. From the sectoral front, Auto, Realty, Metal, Power, Oil & Gas, Capital Goods and Pharma stocks contributed to the positive sentiments. Good buying was also seen in BSE Mid Cap and BSE Small Cap indices. However, Consumer Durables and FMCG stocks observed most of the selling from these baskets.
Among the Sensex pack 26 stocks ended in green territory and 4 in red. The market breadth indicating the overall health of the market remained positive as 1761 stocks closed in green while 953 stocks closed in red and 71 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 253.92 points or (1.62%) at 15,924.23 and NSE Nifty ended up by 74.95 points or (1.62%) at 4,711.40. BSE Mid Caps and Small Caps closed with gains 131.56 and 107.95 points at 5,702.58 and 6,313.78 respectively. The BSE Sensex touched intraday high of 15,963.36 and intraday low of 15,608.40.
Gainers from the BSE Sensex pack are Hindalco (7.98%), M&M Ltd (6.88%), RCom (5.17%), BHEL (5.15%), Tata Steel (4.52%), Grasim Power (4.31%), JP Associates (4.05%), Maruti Suzuki (3.98%), Sterlitye Industries (3.90%), Reliance (2.96%), DLF Ltd (2.40%), Tata Motors (2.30%), ICICI Bank (1.89%), Grasim Industries (1.82%), SBI (1.79%), Reliance Infra (1.47%) and ACC Ltd (1.09%).
Losers from the BSE Sensex pack are HUL (2.25%), ITC Ltd (0.70%), HDFC Bank (0.39%) and HDFC (0.17%).
On the global markets front the Asian markets that opened before the Indian market, ended mostly higher on signs of a lift up in Chinese economic activity. Two surveys showed that Chinese factory growth accelerating in July on a revived domestic economy and slight pick-up in demand for its exports. Shanghai Composite, Hang Seng, Straits Times and Seoul Composite ended up by 50.23, 233.93, 22.44 and 7.69 points at 3,462.59, 20,807.26, 2,681.64 and 1,564.98 respectively. However, Nikkei 225 lost 4.36 points at 10,352.47.
European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading up by 90.34 points at 5,422.48 in London FTSE 100 is trading higher by 77.01 points at 4,685.37.
The BSE Auto index advanced by (4.60%) or 262.77 points at 5,976.45. Bharat Forge (18.53%), Amtek Auto (17.95%), Cummins Indi (8.27%), M&M Ltd (6.88%) and Bajaj Auto (6.52%) closed in positive territory.
The BSE Realty index gained (4.19%) or 163.72 points at 4,072.49. Main gainers are Pheonix Mill (9.64%), Mahindra Life (9.17%), Anant Raj (8.04%), Indiabull Real (6.35%) and Penland Ltd (6.32%).
The BSE Metal index ended up by (3.41%) or 422.76 points at 12,818.02. Scrips that gained are Hindalco (7.98%), JSW Steel (6.84%), Hindustan Zinc (6.70%), Nalco (5.11%) and Jindal Saw (4.69%).
The BSE Power index ended higher by (2.19%) or 65.17 points at 3,035.63. As BHEL (5.15%), Tata Power (4.31%), Torrent Power (3.65%), ABB Ltd (3.61%) and Lanco Infra (2.41%) ended in green.
The BSE Oil & Gas index closed higher by (2.04%) or 192.99 points at 9,673.08. Gainers are Aban Offshore (9.74%), Cairn Ind (3.39%), Reliance Pet (2.96%), Reliance (2.96%) and ONGC Ltd (1%).
The BSE Consumer Durable index dropped by (0.80%) or 24.88 points at 3,094.21. Losers are Blue Star L (2.49%) and Titan Ind (0.71%). However, gainers from the index are Gitanjali GE (5.42%), Rajesh Export (1.83%) and Videocon Ind (0.50%).
L&T ended up by 0.85%. The company has won two major offshore platform contracts from the Oil & Natural Gas Corporation aggregating over Rs 5300 crores (US$ 1.18 billion). The Company secured a turnkey order for the Mumbai High North (MHN) process platform & living quarters project, with an additional order for supply of three process gas compression modules to be installed in the same complex. The projects will be completed within 33 months.
Bharti Airtel gained 0.13%. The company had entered into an exclusivity agreement regarding the potential transaction until July 31, 2009. As discussions between the parties regarding the potential transaction are continuing, both parties have agreed to extend the exclusivity period up to August 31, 2009.
Jaiprakash Associates Ltd (JAL) advanced by 4.05%. The company disclosed plan to make an investment of Rs. 1,050 crore for setting up a greenfield cement plant in Assam. The project would be a joint venture one with Assam Mineral Development Corporation (AMDC), Assam''s government undertaking. The plant''s total production capacity would be 2 million tonnes.
Aurobindo Pharma Ltd spurted 6.96% after consolidated net profit increased incredibly 911.2% to Rs. 166.45 crore in Q1 June 2009 as against Q1 June 2008.
Reliance Communication Ltd advanced by 5.17% after net profit improved 6.5% to Rs. 370 crore on a 5.4% decline in sales to Rs. 3,006.13 crore in Q1 June 2009 as against Q1 June 2008.
Sanghi Industries Ltd zoomed 14.40% after net profit increased phenomenally 157.3% to Rs 18.94 crore in Q1 June 2009 as against Q1 June 2008.
Divi''s Laboratories Ltd sunk 4.57% after consolidated net profit plunged 95.5% to Rs. 4.29 crore in Q1 June 2009 as against Q1 June 2008.
Sensex above 15900
The market continued to scale up and closed firm above 15900 levels. Exhibiting a choppy trend in early trades, Sensex gyrated over 250 points after the opening bell and slipped around 15600 mark on sustained selling pressure to touch the day's low of 15608. Recovery started thereafter and the market rebounded into the positive territory in afternoon. Substantial buying in Hindalco Industries, Mahindra & Mahindra, Reliance Communications, Bharat Heavy Electricals Ltd (BHEL) and Tata Steel saw Sensex notch up significant gains in late trades and touch a new intra-day high of 1596. Sensex wrapped the session 254 points higher at 15924, while the 50-stock Nifty gained 75 points to close at 4711.
Market breadth, the number of advancing stocks to declining stocks, was positive for the day. Of the 2,785 stocks traded on BSE, 1,761 stocks advanced whereas 953 stocks declined. Seventy one stocks ended unchanged. All the 13 sectoral indices bar BSE FMCG and BSE CD posted gains for the day. BSE Auto flared 4.60% up and BSE Realty gained 4.19%. Other sectoral indices were up 1-3% each.
Recovery in the market was led by Hindalco Industries, which shot up by 7.98% to Rs108.20. Among other major gainers, Mahindra & Mahindra advanced 6.88% to Rs915.75, Reliance Communications moved up 5.17% to Rs289.90, BHEL added 5.15% to move to Rs2,342.70, Tata Steel scaled 4.52% to Rs483.60 and Tata Power jumped 4.31% to Rs1,358.50. Select index stocks witnessed heavy selling pressure. Hindustan Unilever dropped 2.25% to Rs284.65. ITC India fell 0.70% to Rs248.30, HDFC Bank declined 0.39% to Rs1,493.70 and HDFC slipped 0.17% to Rs2,526.75.
Over 2.39 crore shares of Unitech changed hands on the BSE followed by Suzlon Energy (2.13 crore shares), Ispat Industries (1.87 crore shares), Excel Infoways (1.70 crore shares) and Reliance Natural Resources (97 lakh shares).
Nifty August 2009 futures at premium
Turnover drops
Nifty August 2009 futures were at 4729.90, at a premium of 18.50 points as compared to the spot closing of 4711.40. Turnover in NSE's futures & options (F&O) was Rs 50,805.16 crore, lower than Rs 57,151.46 crore on Friday, 31 July 2009.
Reliance Industries August 2009 futures were at premium at 2032 compared to the spot closing of 2017.
Unitech August 2009 futures were at premium at 95.45 compared to the spot closing of 94.55.
Aban Offshore August 2009 futures were at premium at 1158 compared to the spot closing of 1142.25.
In the cash market, the S&P CNX Nifty gained 74.95 points or 1.62% at 4711.40.
Asian markets makes headway on Monday
Enters August with renewed hopes about global recovery
Stock market in Asian region enter August with caution as regional markets closed higher on Monday, 3 August 2009, as investors turned conservative in most of the markets in the region. After taking positive cues from Wall Street are slightly positive the regional markets continued to seesaw between gains and losses. However, some positive manufacturing report from China and India boosted investor’s confidence towards the end. Energy and materials stocks are seen edging higher after a weak start. Consumer staples, healthcare and utilities stocks are mostly trading lower.
On Wall Street, stock markets capped off a stellar July with a mellow trading session after the government reported that the economy shrank again in the second quarter but not as badly as expected. The Dow Jones Industrial Average rose 17.15 points, or 0.2% to 9171.61, while the S&P 500 gained 0.72 points, or 0.07%, to 987.47. The Nasdaq Composite fell 5.8 points, or 0.3%, to 1978.5.
The day's action wasn't much, but the major indices had their best performance for a July in years. The Dow rose 8.6%, the S&P 500 added 7.4%, and the Nasdaq tacked on 7.8% for the month. It was the best monthly performance percentage wise since October 2002. It was also the best July month in percentage terms since 1989 when it rose 9.04%. Point wise it was the biggest gain in its history.
On the economic front, the advance reading on GDP, the most anticipated economic data of the week, indicated national production shrank by 1% in the second quarter, which was less severe than expected. However, first- quarter GDP was revised to reflect a 6.4% drop rather than the previously reported 5.5% decline. GDP has now fallen for four straight quarters, the first time since government records started in 1947.
In the commodity market, crude oil traded above $70 a barrel for the first time in a month on speculation fuel demand will increase, as equities in Asia gained for a third day amid signs the global economy is recovering.
Crude oil for September delivery rose as much as 88 cents, or 1.3 percent, to $70.33 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It traded at $70.30 a barrel at 2:23 p.m. in Singapore. Crude reached $71.85 a barrel on 1 July 2009.
Brent crude oil for September settlement gained as much as 78 cents, or 1.1 percent, to $72.48 a barrel on London’s ICE Futures Europe exchange. It traded at $72.34 a barrel at 2:23 p.m. Singapore time.
Gold advanced for a third day as signs of recovery in the global economy weakened the dollar and increased demand for the precious metal. Gold for immediate delivery added $1.42, or 0.2 percent, to $955.42 an ounce by 9:44 a.m. in London. Gold for December delivery, the most active contract rose $1, or 0.1%, to $956.80 an ounce on the Comex division of the New York Mercantile Exchange.
In the currency market, US dollar remains generally soft as the week starts, edged lower against most major currencies before recovering mildly.
The Japanese yen was quoted at 94.62 against the US dollar, down from Friday's quote of 95.60-61 yen.
The Hong Kong dollar was trading at HK$ 7.7500 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
In Sydney trade, the Australian dollar has closed above $US0.8350 for the first time in 10 months, after better than expected US economic data boosted commodity prices and lent support to resource-based currencies such as the local unit.
At the local close, the dollar was trading at $US0.8357, up from Friday's close of $US0.8279. It was the highest domestic close for the Australian dollar since September 25 last year when it ended the local session at $US0.8391. During the domestic session, the unit moved between a low of $US0.8339 and a high of $US0.8392.
In Wellington trade, the New Zealand dollar rose today in defiance of the Reserve Bank of New Zealand's latest attempt to talk it down. The NZ dollar fell as low as US 64.75 cents yesterday when the Reserve Bank said it would reassess policy settings if the economic recovery were put at risk. The central bank held its official cash rate unchanged at 2.5%. The NZ dollar recovered to US 65.68 cents at 5 pm from US 64.95 cents at the same time yesterday.
The South Korean won ended at a new yearly high of 1,222.4 won against the greenback, up 6.1 won from Friday's close, as overseas investors were net buyers of local shares for a 14th session.
The Taiwan dollar strengthened strongly against the greenback. The Taiwan dollar added against the US dollar as it was trading higher at NT$ 32.7720, up by NT$ 0.0460 from Friday’s close of NT$32.8180.
Coming back in equities, Asian markets ended mostly higher Monday, with resource and shipping shares jumping in line with commodity prices and as data showed Chinese manufacturing activity continued to gather pace in July.
In Japan, the share market finished the session in mixed terrain, as gains from banks and auto shares on upbeat earnings outlooks overshadowed by quick profit amid caution about an overheated market. Casio Computer and Fuji film Holdings tumbled on depressing earning report. At the closing bell, the Nikkei 225 Stock Average index eased 4.36 points, or 0.04%, to 10,352.47, while the broader Topix index rose 7.3 points, 0.8%, to 958.
In Mainland China, benchmark indices surged as bargain hunters stepped in on more signs of economic activity picking up speed. Shares of materials led the rally after manufacturing expanded and higher prices for the commodities. At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, surged 1.48%, or 50.53 points, to 3,462.59, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, spurted 1.4% to 3,787.03.
On the economic front, the China Federation of Logistics & Purchasing said China's Purchasing Manager's Index, a major indicator of the strength of the manufacturing sector, rose seasonally adjusted 53.3 in July 2009, from 53.2 June 2009.
In Hong Kong, the benchmark index surged with gains across the sectors as a set of solid corporate results overseas-revived hopes for a global economic recovery. Shares of materials and energy led the rally after China manufacturing expanded in July. Financials and properties rebounded amid more sign of an economic recovery. The Hang Seng Index spurted 233.93 points, or 1.14%, to 20,807.93, while the Hang Seng China Enterprise gained 244.61 points, or 2.01%, to 12,368.20.
In Australia, the stock market surged backed by strength in the financials sector after Goldman Sachs JB Were upgraded the big four banks. Materials and recourses bounced on higher base metal prices. At the closing bell, the benchmark S&P/ASX200 index surged 19.4 points, or 0.46%, to 4,263.4, meanwhile the broader All Ordinaries spurted 21 points, or 0.49%, to 4,270.5.
On the economic front, total Australian job ads fell by 1.7% in July 2009 from previous month. Newspaper ads declined 0.4% while jobs advertised online was down 1.8%. A key-manufacturing index rose 6.1 index points in July to its highest level in 10 months. The figure remained in contraction territory at 44.5 points, however was the third successive month of easing.
In New Zealand, equities commenced the first trading day of the week in the green region, registering the third day of gain in a row on Monday. The NZX50 moved forward 1.05% or 31.65 points to 3047.85. The NZX 15 increased 1.41% or 78.34 points to close at 5638.34.
On the economic front, as per the summary of the monthly economic indicators released by the treasury, recent data point to weak domestic demand in the June quarter, in line with forecasts. The outlook for the second half of the year is more positive, but still weak. The New Zealand economy is expected to shrink 0.2% in the September quarter after easing 0.4% in the second quarter. Net migration is expected to provide near-term support for the housing market. International outlook improves, with risk appetite driving the New Zealand dollar higher.
In South Korea, shares closed higher as strong foreign buying drove up brokerages, auto firms and machinery makers. The benchmark Korea Composite Stock Price Index (KOSPI) added 7.69 points to 1,564.98, a new high for this year.
On the economic front, the National Statistical Office reported earlier in the day that the consumer price index rose a lower-than-expected 1.6% in July from a year earlier, the slowest annual growth since May 2000.
In Singapore, the stock market spurted as investors step in for dip buying in properties and construction shares amid sign of an economic recovery strengthening hopes of demand revival. Shares of major blue chip rebounded amid more sign of an economic recovery. The blue chip Straits Times Index put on 22.44 points, or 0.84%, to 2,681.64.
In Taiwan, stock market failed to carry July jubilance in August as the benchmark index closed the first trading day of the month as well as the week on lower note, thanks to smart phone maker HTC led technology shares down after it slashed its revenue forecast for 2009. The positive cues from Wall Street could not succeed in setting the flavor in the domestic markets. The main Taiex share index started the week on a silent note as the Taiex index fell 21 points or 0.30%, closing the day at 7056.71.
In Philippines, the stock market closed more than 1% higher buoyed by razor sharp gains in the key heavy weight stocks, especially the mining & oil index. Mining & oil index gained more than 7% dragging the composite index higher. Moreover, as investor’s are positive about the earning reports to be released this week by the local companies, which in turn led to the buying of key blue chips. The benchmark index PSEi mounted 1.31% or 36.78 points to 2,835.11, while the All Shares index climbed 1.01% or 17.90 points to 1,786.06.
On the economic front, inflation is likely decelerated further last month. Low inflation will give the central bank more leeway to consider cutting reserve requirement, though they might wait until the release of the second quarter economic data. However, the market is still divided on the central bank's next move. Some market player’s do not expect a drop in inflation to prod the central bank to ease rates further in a meeting this month, policymakers may look at other monetary tools such as lower reserve requirement on bank deposits. While some believe there is a chance of a 25 bps rate cut if inflation falls below 1%. Manila will release on 5 August inflation data for July which is expected to be the lowest in 22 years.
In India, the key benchmark indices extended gains in late trade as European stocks and US index futures rose. Sign of recovery in the Indian economy, better-than-expected Q1 June 2009 results from India, which just got over and buying by foreign funds underpinned sentiment.
The BSE 30-share Sensex was up 253.92 points or 1.62% to 15,924.23. The Sensex rose 293.05 points at the day's high of 15,963.36 in late trade, its highest level since 6 June 2008. The S&P CNX Nifty was up 74.95 points or 1.62% to 4,711.40. It hit a high of 4,723.75, its highest level since 6 June 2008.
Elsewhere, Malaysia's Kula Lumpur Composite index went down 0.31% or 3.59 points to 1171.31 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2338.80.
In other regional market, European shares traded higher on Monday, with banks advancing after reports that UBS may avoid a fine from the U.S. and Barclays reported a profit. On a regional level, the German DAX index rose 1.67% or 89.18 points to 5,421, the French CAC-40 index climbed 1.50% or 51.33 points to 3,478 and the U.K. FTSE 100 index edged up 1.70% or 78.35 points to 4,687.
Sensex, Nifty soar to 14-month high as global stocks rally
The key benchmark indices rose for the third session in a row, helped by firm European stocks and higher US index futures. Sign of recovery in the Indian economy, better-than-expected Q1 June 2009 results from India Inc which just got over and buying by foreign funds underpinned sentiment. The BSE 30-share Sensex was up 253.92 points or 1.62%, up close to 315 points from the day's low and off close to 40 points from the day's high.
The barometer index BSE Sensex and the 50-unit S&P CNX Nifty, both attained their highest closing level in 14 months. The Sensex has risen 750.77 points or 4.94% in last three trading sessions.
Auto stocks rose on improved sales in the month just gone by whereas firm metal prices on the London Metal Exchanges boosted metal counters. India's largest car maker by sales Maruti Suzuki India hit a record high. Realty stocks rose and index heavyweight Reliance Industries also edged higher
The market was volatile. Equities pared gains after a firm start triggered by gains in some Asian stocks. The market regained strength after moving between the positive and negative terrain in mid-morning trade. The market pared gains once again in early afternoon trade. Stocks slipped into the red once again after a government data showed fall in exports. However, it soon regained positive zone on gains in European stocks and higher US index futures. The market surged to hit fresh intraday high in mid-afternoon trade. The market further extended gains in late trade.
Strong inflows from foreign funds has boosted the bourses in the past few weeks. FII inflow in July 2009 totaled Rs 11,625.20 crore. FIIs had bought stocks worth a net Rs 3,224.90 crore in June 2009. FII inflow in calendar year 2009 totaled Rs 36,169.70 crore (till 31 July 2009).
The Q1 June 2009 results of India Inc were encouraging, with lower costs helping bottomline growth. The combined net profit of 2661 companies rose 17.3% to Rs 73478 crore on 5% fall in sales to Rs 713706 crore in Q1 June 2009 over Q1 June 2008.
But data released by the government today showed that exports fell 27.7% in June 2009 to $12.8 billion, its ninth straight monthly fall. Imports dropped 29.3% to $18.98 billion in June 2009. Exports were down 31.3% at $35.4 billion between April and June this year from the same period in the previous year.
Nevertheless, in another indicator that the economy is recovering, growth in India's manufacturing activity held steady in July 2009 amid robust local demand and a slight rebound in exports. However, intense competition curbed companies' pricing power even as raw material costs jumped, a survey showed. The Markit Purchasing Managers' Index (PMI), based on a survey of 500 companies, was at 55.30 in July 2009, little changed from 55.34 in June 2009. It has been above the threshold of 50 -- which separates expansion from contraction -- for four straight months. The new orders index rose to 59.75, its highest in nine months, from 58.56 in June 2009.
A weak monsoon remains a cause of concern though. 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 30 July 2009. 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.
Meanwhile, the finances of the government showed improvement during the first quarter of 2009-10 (Q1 June 2009), with the fiscal deficit working out to be 31% of the estimates as compared to 65% in the corresponding period last fiscal. Against the Budget estimate of Rs 4,00,996 crore for the entire financial year, the fiscal deficit stood at Rs 1,24,302 crore at the end of 30 June 2009. It is to be noted that the fiscal deficit was revised upward at Rs 4,00,996 crore in the full Budget tabled in Parliament on 6 July 2009 against Rs 3,32,835 crore projected in the interim Budget in February 2009.
The Reserve Bank of India (RBI) on Friday, 31 July 2009, extended the interest subsidy of 2% to exporters, battling demand recession in western economies, by six months till March 2010.
European shares rose, with banks advancing after reports that UBS may avoid a fine from the US and Barclays reported a profit. Key benchmark indices in France, Germany and UK were up by between 1.53% to 1.69%.
The Markit euro-zone manufacturing purchasing managers index rose to 46.3 in July 2009, up from 42.6 in June 2009, the second strongest rise in point terms in the history of the survey and the highest reading in 11 months. Although still below the 50 no-change line, the index rise was led by a near-stabilization of manufacturing production.
Select Asian stocks rose after CLSA Asia Pacific Markets said its China manufacturing PMI remained in expansionary territory for the fourth consecutive month in July 2009, rising to 52.8, up from 51.8 in June 2009. Key benchmark indices in China, Hong Kong Singapore and South Korea rose by between 0.49% to 1.48%. But key benchmark indices in Japan, and Taiwan fell by between 0.04% to 0.3%.
Trading in US index futures indicated the Dow could rise 82 points at the opening bell today, 3 August 2009.
On the Wall Street on Friday, 31 July 2009, the Dow pulled off a modest gain, capping a rocky week and month. Markets stayed in the green for much of the day after the Q2 GDP showed a less than expected contraction. The Dow gained 17.15 points, or 0.2%, to 9,171.61. The S&P 500 index added 0.73 points, or 0.1, to 987.48. But the Nasdaq Composite index slipped 5.80 points, or 0.3%, to 1,978.50.
The BSE 30-share Sensex jumped 253.92 points or 1.62% to 15,924.23, its highest closing since 3 June 2008. The Sensex rose 293.05 points at the day's high of 15,963.36 in late trade. The Sensex fell 61.91 points at the day's low of 15,608.40 in early afternoon trade.
The S&P CNX Nifty was up 74.95 points or 1.62% to 4,711.40, its highest closing since 3 June 2008. It hit a high of 4,723.75. Nifty August 2009 futures were at 4729.90, at a premium of 18.50 points as compared to the spot closing of 4711.40. Turnover in NSE's futures & options (F&O) was Rs 50,805.16 crore, lower than Rs 57,151.46 crore on Friday, 31 July 2009.
BSE clocked a turnover of Rs 5,471 crore lower than Rs 6,292.49 crore on Friday, 31 July 2009.
The Sensex is up 6276.92 points or 65.06% in calendar year 2009 as on 3 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,763.83 points or 95.14% as on 3 August 2009.
Coming back to today's trade, the market breadth, indicating the overall health of the market, was strong. The breadth had weakened in mid-morning trade from a strong breadth earlier in the day. On BSE, 1,755 shares advanced as compared with 951 that declined. A total of 71 shares remained unchanged.
Among the 30-member Sensex pack, 26 rose while rest declined.
The BSE Mid-Cap index was up 2.36% and the BSE Small-Cap index was up 1.74%. Both the indices outperformed Sensex.
The BSE Auto index (up 4.6%), the BSE Realty index (up 4.19%), the BSE Metal index (up 3.41%), the BSE Power index (up 2.19%), the BSE Oil & Gas index (up 2.04%), the BSE Capital Goods index (up 1.82%), outperformed the Sensex.
The BSE Consumer Durables index (down 0.8%), the BSE FMCG index (down 0.71%), the BSE PSU index (up 0.98%), the BSE IT index (up 0.99%), the BSE Teck index (up 1.2%), the BSE Bankex (up 1.2%), the BSE Healthcare index (up 1.41%), underperformed the Sensex.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 2.96% to Rs 2,014.95 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 firms rose as crude oil surged past $70 a barrel mark for the first time in a month on signs the global economy is recovering from recession. Cairn India rose 3.39%. India's largest state-run oil exploration firm by sales ONGC rose 1%. Crude oil for September delivery rose as much as 66 cents, or 1% to $70.11 a barrel on the New York Mercantile Exchange. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.
But PSU OMCs fell on rise in crude oil prices. BPCL, Indian Oil Corporation and HPCL fell by between 0.85% to 2.22%. Rise in crude oil prices will result in increase in under-recoveries for the PSU OMCs on domestic sale of fuels at controlled prices.
Oil services providers rose as increase in oil price may result in increase in exploration and production activities by oil firms which in turn may result in increase in demand for oil rigs. Aban Offshore, Asian Oilfield, Great Offshore rose by between 4.39% to 9.74%.
Rate sensitive realty shares rose on the government's thrust on the housing sector in the Union Budget 2009-2010. Unitech, Ackruti City, Indiabulls Real Estate and Omaxe rose by between 1.73% to 6.35%.
India's largest real estate developer by sales DLF reversed early losses and rose 2.4%. The company's net profit fell 85.7% to Rs 100.40 crore on 67.3% fall in sales to Rs 417.97 crore in Q1 June 2009 over Q1 June 2008. The company announced the results after trading hours on 30 June 2009.
Auto stocks jumped after posting strong July 2009 sales figures. India's largest tractor maker by sales Mahindra & Mahindra rose 6.88% after total sales rose 27% to 22463 units in July 2009 over July 2008.
India's top small car maker by sales Maruti Suzuki India rose 3.98% to Rs 1,469.55 after total sales rose 33.5% to 78,074 units in July 2009 over July 2008. The stock hit a record high of Rs 1,478 today.
India's largest bike maker by sales Hero Honda Motors rose 1% after total sales rose 30.3% to 3.66 lakh units in July 2009 over July 2008.
TVS Motor Company rose 1.6% after scooter sales rose 14.55% to 27673 units in July 2009 over July 2008. Total two wheeler sales remained flat at 1.21 lakh units in July 2009 compared to 1.20 lakh units in July 2008.
Bajaj Auto rose 6.52% as it plans to raise its domestic motorcycle production by 25% in August 2009 due to strong demand. The company's total sales fell 0.4% to 192,835 units in July 2009 over July 2008.
India's largest commercial vehicle maker by sales Tata Motors rose 2.3%. The company's total vehicle sales rose 18% to 48,054 units in July 2009 over July 2008.
Besides auto stocks, shares of a number of other auto component makers surged today. Improved sales of automobiles in India and Europe and an expected recovery in US auto sales drove shares of auto component makers higher. Bosch, Gabriel India, Sona Koyo Industries, Exide Industries, Banco Products India and Amtek auto rose by between 0.44% to 17.95%.
Tyre stocks, TVS Srichakra, Apollo Tyres, Ceat rose by between 0.62% to 20%.
Metal stocks rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 1.71% on Friday, 31 July 2009.
India's largest private sector steel maker by sales Tata Steel rose 4.52%. 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 29 July 2009.
India's second largest steel maker by sales Steel Authority of India rose 2.39%. 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 30 July 2009.
India's largest copper market by sales Sterlite Industries rose 3.9%. 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.
India's largest aluminum maker by sales Hindalco Industries rose 7.98% 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 during trading hours on Friday, 31 July 2009.
India's second-largest aluminum producer by sales National Aluminium Company rose 5.11% after it raised the price for the second month in a row after aluminum gained on the London Metal Exchange. The price increased as much as 6,000 rupees ($125) a metric ton, or 5.8 % Chairman C. R. Pradhan said.
India's largest mobile telecom player by sales Bharti Airtel rose 0.13% after the company extended a deadline for merger talks with South Africa's MTN Group until 31 August 2009. The structure and terms of the potential transaction may be adjusted to reflect further discussions between the parties, Bharti said in a statement.
India's second largest mobile services provider by sales Reliance Communications rose 5.17% after 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 on Friday 31 July 2009.
Grasim Industries rose 1.82% and unit UltraTech Cement rose 0.28%. India's Aditya Birla Group said on Monday its cement shipments rose 10% to 2.7 million tonnes in July 2009 over July 2008. The group's cement business includes flagship Grasim Industries and unit UltraTech Cement with a combined production capacity of 42 million tonnes a year.
Sun Pharmaceutical Industries, India biggest drugmaker by market value, fell 0.4% even after company settled a lawsuit with MedImmune Inc. on a generic version of the cancer drug Ethyol. MedImmune granted Sun a license to certain patents allowing the Indian company to continue to sell the generic version in the US, Sun Pharma said.
Divi's Laboratories plunged 4.57% after consolidated net profit tumbled 95.5% to Rs 4.29 crore in Q1 June 2009 over Q1 June 2008.
ome power stocks rose after a strong response to the Adani Power initial public offer (IPO) which closed on Friday, 31 July 2009. Torrent Power, Reliance Power, NTPC, CESC rose by between 0.83% to 2.38%. The Adani Power IPO was subscribed 21.51 times.
Tata Power Company rose 4.31% 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 on Friday, 31 July 2009.
Reliance Infrastructure rose 1.47%. 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.
But Suzlon Energy tumbled 4.11% after it reported a net loss of Rs 160.47 crore in Q1 June 2009 compared with a net profit of Rs 88.04 crore in Q1 June 2008.
Capital goods and construction stocks rose on government's thrust on infrastructure sector in Union Budget 2009-2010. India's largest electric equipment maker by sales Bharat Heavy Electricals (Bhel) rose 5.15% on plans to enhance its capabilities for manufacture and supply of nuclear reactor components like steam generator for higher size reactors proposed to be installed in the country.
India's largest engineering and construction firm by sales Larsen & Toubro rose 0.85% after company said on Monday it has won two contracts from state-run ONGC, aggregating over Rs 5300 crore.
Among other capital goods stocks, Punj Lloyd, ABB, BEML, Praj Industries, Siemens, rose by between 1.42% to 9.2%.
Among construction shares, Nagarjuna Construction Company, Hindustan Construction Company, Era Infra Engineering, Gayatri Projects and IVRCL Infrastructure & Projects, rose by between 0.6% to 4.27%.
IT stocks rose on better than expected Q1 June 2008 result announced by IT pivotals over the past few days. India's second largest IT exporter by sales Infosys rose 0.58% after its American depository receipt (ADR) rose 1.94% on Friday. India's third largest IT exporter by sales Wipro rose 0.1% as its ADR rose 0.9% on Friday. India's largest IT exporter by sales TCS rose 0.84%.
FMCG stocks fell on concerns over progress of India's annual monsoon. FMCG firms derive substantial revenue from rural sector. Britannia Industries, ITC, Nestle India, REI Agro, Marico fell by between 0.7% to 4.55%.
India's largest FMCG company by sales Hindustan Unilever fell 2.25%. 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 early last week.
Bank stocks rose after some leading banks posted strong Q1 June 2009 results in the past few days. India's biggest commercial bank in terms of branch network State Bank of India (SBI) rose 1.79% extending recent gains as 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.
India's largest private sector bank in terms of operating income ICICI Bank rose 1.89% as its ADR rose 0.93% on Friday. But, India's second largest private sector bank in terms of operating income HDFC Bank fell 0.39% even as its ADR rose 1.68% on Friday, 31 July 2009.
Unitech clocked highest volume of 2.39 crore shares on BSE. Suzlon Energy (2.13 crore shares), Cals Refineries (1.87 crore shares), Ispat Industries (1.7 crore shares) and Excel Infoways (1.28 crore shares) were the other volume toppers in that order.
Unitech clocked highest turnover of Rs 226.20 crore on BSE. Aban Offshore (224.73 crore), Suzlon Energy (Rs 203.92 crore), Tata Steel (Rs 178.96 crore) and DLF (Rs 171.08 crore) were the other turnover toppers in that order.
Grey Market Premium - Adani Power, NHPC, Raj Oil Mills, Excel Infoways
NHPC 30 to 36 10 to 11
Adani Power 90 to 100 7.50 to 8
Raj Oil Mills 120 4 to 5
Excel Infoways 85 7 to 8
Stocks to watch - Bharti Airtel, Reliance Communications, Unitech
Bharti Airtel and South Africa's MTN Group are reportedly likely to update the market today, 3 August 2009, on talks aimed at merging their operations.
Net profit of Reliance Communication rose 6.51% to Rs 370.00 crore in the quarter ended June 2009 as against Rs 347.38 crore during the previous quarter ended June 2008. Sales declined 5.36% to Rs 3006.13 crore in the quarter ended June 2009 as against Rs 3176.47 crore during the previous quarter ended June 2008.
Net profit of Unitech declined 52.71% to Rs 142.50 crore in the quarter ended June 2009 as against Rs 301.31 crore during the previous quarter ended June 2008. Sales declined 54.65% to Rs 335.52 crore in the quarter ended June 2009 as against Rs 739.82 crore during the previous quarter ended June 2008.
Seperately, Unitech is reportedly planning a third round of share placements with institutional investors for about Rs 1000 crore. The proceeds will be used for fresh investment.
Tata Consultancy Services (TCS) and Wipro, amongst others, are reportedly in pursuit of an up to Rs 2500 crore outsourcing contract from Indian Railways.
Financial Technologies reportedly proposes to divest 52% in the MCX Stock Exchange by September 2009-end.
Electricity traders Jindal steel and Power and GMR Energy, an unlisted subsidiary of GMR Infrastructure, have reportedly surrendered their trading licences saying a Rs 0.04 cap on their margin imposed by the electricity regulator in 2006 has made the trading business unviable.
Oil and Natural Gas Corporation (ONGC) has for the first time reportedly begun ultra deep-sea drilling off the Kochi coast in Kerala. It proposes to start another drilling operation not far from the location.
Tamil Nadu's environment authority has reportedly permitted Chemplast Sanmar to restart work on a coal-fired power plant in Mettur in southern India, reversing an earlier decision to withdraw its approval.
Net profit of GMR Infrastructure declined 91.50% to Rs 3.56 crore in the quarter ended June 2009 as against Rs 41.89 crore during the previous quarter ended June 2008. Sales declined 68.47% to Rs 17.48 crore in the quarter ended June 2009 as against Rs 55.44 crore during the previous quarter ended June 2008.
Net profit of Reliance Capital declined 68.09% to Rs 104.29 crore in the quarter ended June 2009 as against Rs 326.85 crore during the previous quarter ended June 2008. Sales declined 19.11% to Rs 606.89 crore in the quarter ended June 2009 as against Rs 750.24 crore during the previous quarter ended June 2008.
Net profit of Britannia Industries rose 17.46% to Rs 47.37 crore in the quarter ended June 2009 as against Rs 40.33 crore during the previous quarter ended June 2008. Sales rose 5.46% to Rs 731.24 crore in the quarter ended June 2009 as against Rs 693.36 crore during the previous quarter ended June 2008.
Adlabs Films reported net loss of Rs 66.10 crore in the quarter ended June 2009 as against net profit of Rs 1.15 crore during the previous quarter ended June 2008. Sales declined 72.83% to Rs 49.94 crore in the quarter ended June 2009 as against Rs 183.79 crore during the previous quarter ended June 2008.
Mahanagar Telephone Nigam reported net loss of Rs 46.85 crore in the quarter ended June 2009 as against net profit of Rs 112.54 crore during the previous quarter ended June 2008. Sales declined 16.20% to Rs 937.71 crore in the quarter ended June 2009 as against Rs 1118.94 crore during the previous quarter ended June 2008.
Net profit of Divi's Laboratories declined 94.90% to Rs 4.92 crore in the quarter ended June 2009 as against Rs 96.48 crore during the previous quarter ended June 2008. Sales declined 23.79% to Rs 202.77 crore in the quarter ended June 2009 as against Rs 266.07 crore during the previous quarter ended June 2008.
Net profit of ICSA (India) declined 16.96% to Rs 34.02 crore in the quarter ended June 2009 as against Rs 40.97 crore during the previous quarter ended June 2008. Sales rose 26.58% to Rs 305.69 crore in the quarter ended June 2009 as against Rs 241.50 crore during the previous quarter ended June 2008.
Net profit of TVS Motor Company rose 158.12% to Rs 18.12 crore in the quarter ended June 2009 as against Rs 7.02 crore during the previous quarter ended June 2008. Sales rose 7.09% to Rs 975.62 crore in the quarter ended June 2009 as against Rs 911.07 crore during the previous quarter ended June 2008.
Net profit of McNally Bharat Engineering Company rose 98.28% to Rs 8.07 crore in the quarter ended June 2009 as against Rs 4.07 crore during the previous quarter ended June 2008. Sales rose 123.29% to Rs 269.00 crore in the quarter ended June 2009 as against Rs 120.47 crore during the previous quarter ended June 2008.
Dish TV India reported net loss of Rs 69.20 crore in the quarter ended June 2009 as against net loss of Rs 125.44 crore during the previous quarter ended June 2008. Sales rose 49.76% to Rs 246.29 crore in the quarter ended June 2009 as against Rs 164.46 crore during the previous quarter ended June 2008.
Pre Session Commentary - Aug 3 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened in the positive territory. There are positive sentiments across the world markets as US second quarter GDP has contracted only by -1.0%, far better than expected -1.5% and -6.4% recorded during the first quarter. In the domestic arena benchmark indices are already at there peak level of 2009 and therefore profit booking pressures may hamper a lot of frontline stocks. There could be a range bound trade during the day’s session.
On Friday, domestic markets closed higher. The market opened with strong gains and kept on marching forward till the mid session however, selective profit booking in the late after noon trade led the market to shed most of its gains tracking the weakness in the European markets. Firmness came on last hour trading after substantial buying in index heavyweights like Hindalco, Tata Motors, ONGC and SBI that closed more than 5% each. The speculators took fresh positions on the first day of the August future and option series. World equity funds gathered $9.5 billion in the week ending 29 July 2009, as per global fund tracker EPFR Global, highest since June 2008. BRIC (Brazil, Russia, India and China) equity funds seeing net inflows for a 19th consecutive 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 reported $711 million in fresh money. The BSE Sensex ended above15,350 level and NSE Nifty closed above 4,550 mark.
The BSE Sensex closed higher by 282.35 points or (1.83%) at 15,670.31 and NSE Nifty ended up by 65 points or (1.42%) at 4,636.45. BSE Mid Caps and Small Caps closed with gains 64.62 and 1.82 points at 5,571.02 and 6,205.83 respectively. The BSE Sensex touched intraday high of 15,732.81 and intraday low of 15,449.47.
On Friday, the US stock markets closed mixed. The Q2 GDP reading was a major event before the markets opened. The advance Q2 GDP reported a contraction of -1.0%, marking the fourth consecutive quarter of decline. However the contraction was better than the expected -1.5% decline and also downwardly revised -6.4% (from -5.5%) in the first quarter. On the other hand another major economic indicator called Personal Consumption, which accounts major chunk of US GDP reported a worst than expected fall of -1.2% as against the estimated -0.5%. In sector specific, Materials took the lead with a gain of 0.9% as commodity prices rose, whereas Utilities sector underperformed with a loss of 1.1%. After a range bound trading the markets closed nearly unchanged. US light crude oil futures for September delivery closed at $69.34 per barrel up by 3.6% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 17.15 points at 9,171.61, NASDAQ index declined by 5.80 points to 1,978.50 and the S&P 500 (SPX) closed flat at 987.48.
Today major stock markets in Asia are trading positive. Hang Seng is up by 92.61 points at 20,665.94. Shanghai Composite is up by 13.22 points at 3,425.29. Japan''s Nikkei is trading low by 28.51 points at 10,328.32. Strait Times is low by 6.69 points at 2,652.51.
Indian ADRs ended mixed on Friday. In the banking space, ICICI Bank was up 0.93% and HDFC Bank was up 1.68%. In the telecom space, Tata Communication was down 4.68% and MTNL was also low by 3.66%. In the IT space, Satyam Computers was low by 2.33%, Infosys was up 1.94%, Wipro was up 0.90% and Patni Computers was up 2.35%. In other sectors, Sterlite Industries was flat, Tata Motors was up 0.67% and Dr Reddy''s Labs was low by 0.59%.
The FIIs on Friday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 5,071.20 Crore, while the gross equity sold stood at Rs 3,887.20 Crore and gross debt purchased stood at Rs 204.10 Crore, while gross debt sold stood at Rs 2,500.30 Crore. The net investment of equity reported was Rs 1,184.00 Crore and net debt was Rs (2,296.20) Crore.
On Friday, the partially convertible rupee ended at Rs 47.49/50, 1.92% stronger than its previous close at 48.42/43. The rupee gained strength on the back of phenomenal firm trend in local stock markets.
On BSE, total number of shares traded were 43.20 Crore and total turnover stood at Rs 6,292.49 Crore. On NSE, total number of shares traded were 95.09 Crore and total turnover was Rs 19,926.93 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 64945636 shares, followed by Suzlon Energy with 48848405, Hindalco with 19802427, DLF with 14815854 and Tata Steel with 12756154 shares.
On NSE Future and Options, total number of contracts traded in index futures was 687808 with a total turnover of Rs 1,5193.7 Crore. Along with this total number of contracts traded in stock futures were 618324 with a total turnover of Rs 19,288.37 crore. Total numbers of contracts for index options were 904949 with a total turnover of Rs 21,271.51 Crore and total numbers of contracts for stock options were 43547 and notional turnover was Rs 1,397.65 Crore.
Today, Nifty would have a support at 4,598 and resistance at 4,696 and BSE Sensex has support at 15,612 and resistance at 15,725.
Sideways movement may continue
The current market sentiment is mainly driven by the earning estimations and movement in global indices. The
mood of the market is expected to remain positive after Friday's solid gains and the sharp FIIs inflow in the domestic markets will also help the local indices advance further. However, subdued Asian indices in current trades may drag the market in early trades. Among the indices, the Nifty could test higher levels around 4694 and 4755 while on the downside the index has a strong support at 4600-4565 levels. The Sensex has a likely support at 15500 and may face resistance at 15800. Geomet, Indo Rama Synthics, Merck, Petronet LNG, Power Finance Corporation and TCS are expected to announce their numbers.
US indices closed mixed on Friday. While the Dow Jones gained by 17 points at 9172, the Nasdaq lost 6 points to close at 1979.
Most of the Indian ADRs barring few ended in the green on the US bourses. VSNL tumbled nearly 4% and MTNL slipped 3.66% while Satyam, Dr Reddy's Lab and Rediff lost over 1-2% each. However, Infosys, Wipro, Tata Motors, ICICI Bank, HDFC Bank and Patni Computers gained over1-2% each.
Crude oil prices in the global market extended their upward trend, with the Nymex light crude oil for September series jumping by $2.51 at $69.45 a barrel. In the commodity space, the Comex gold for December delivery moved down by $18.50 to settle at $955.80 a troy ounce.
Daily trend of FII/MF investment in equities
On July 30, 2009, FIIs were net buyers of stocks to the tune of Rs1184 crore (purchases worth Rs 5071 crore and sales of Rs3887 crore). while domestic mutual funds were net sellers of stocks to the tune of Rs49 crore (purchases worth Rs1537 crore and sales of Rs1586 crore).
Market set for a shaky start after a recent surge
The key benchmark indices set for a uncertain start today on mixed global cues. Profit taking may not be ruled out after the recent surge in indices. Auto stocks may be in action after posting robust July 2009 sales figures.
The key benchmark indices surged for the second straight day on Friday 31 July 2009 as gains in Asian stocks, 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% to 15,670.31 on Friday its highest closing since 17 June 2008.
As per the provisional figures on NSE, foreign funds bought shares worth Rs 582.12 crore and domestic funds bought shares worth Rs 316.11 crore on Friday.
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.
With the result season over, the Q1 June 2009 results of India Inc were encouraging, with lower costs helping bottomline growth. The combined net profit of 2563 companies rose 17.2% to Rs 73243 crore on 5% fall in sales to Rs 710803 crore in Q1 June 2009 over Q1 June 2008.
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.
Meanwhile, the finances of the government showed improvement during the first quarter of 2009-10 (Q1 June 2009), with the fiscal deficit working out to be 31% of the estimates as compared to 65 % in the corresponding period last fiscal. Against the Budget estimate of Rs 4,00,996 crore for the entire financial year, the fiscal deficit stood at Rs 1,24,302 crore at the end of 30 June 2009. It is to be noted that the fiscal deficit was revised upward at Rs 4,00,996 crore in the full Budget tabled in Parliament on 6 July against Rs 3,32,835 crore projected in the interim Budget in February 2009.
Asian stocks were mixed in volatile trade after manufacturing in China expanded. The key benchmark indices in China, Hong Kong and South Korea rose by between 0.39% to 0.61%. The key benchmark indices in Japan, Singapore and Taiwan fell by between 0.27% to 1.04%.
A Chinese manufacturing index climbed to a one-year high in July as stimulus spending stoked domestic demand, countering a slump in exports.
In the Wall Street action, the Dow pulled off a modest gain on Friday, capping a rocky week and month. Markets stayed in the green for much of the day after the Q2 GDP showed a less than expected contraction. On Friday, the Dow gained 17.15 points, or 0.2%, to 9,171.61. The S&P 500 index added 0.73 points, or 0.1, to 987.48, while the Nasdaq Composite slipped 5.80 points, or 0.3%, to 1,978.50.
In economic news, the advance Q2 GDP report showed that the economy had contracted at an annualized rate of minus 1%. This marks the fourth consecutive quarter of decline. But the number was an improvement from expectations of a 1.4% decline. Personal consumption expenditures fell at an annualised rate of minus 1.2%. This was worse than the expected decline of 0.5%.
Precious metals shine on better GDP number
Gold and silver prices gain almost 3% in July
Precious metal prices rose on Friday, 31 July, 2009. Prices rose as the dollar weakened following the GDP numbers for second quarter which showed that US economy contracted at a smaller pace than expected.
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 Friday, gold for August delivery ended at $953.7, higher by $18.8 (2%) an ounce on the New York Mercantile Exchange. It rose as high as $958.10 earlier but also fell to $932. For the week, gold ended almost unchanged. Year to date, gold prices are higher by 7.5%. Gold ended July, 2009 higher by 2.8%.
Before this, 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 (9.5%) since then.
On Friday, Comex silver futures for September delivery gained 45.5 cents (3.4%) at $13.94 an ounce. For the week, silver ended higher by 0.5%.
Silver ended 2.7% higher for July, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 25% this year. For 2008, silver had lost 24%.
In the currency market on Friday, the dollar index, a six-currency gauge of the greenback's value, fell by almost 0.9%.
The advance Q2 GDP report showed the economy contracted at an annualized rate of -1%, marking the fourth consecutive quarter of decline. That was much improved from a downwardly revised -6.4% (from -5.5%) in the first quarter and it was also better than the expected -1.5% decline.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Friday's gains erase weekly losses for crude
Crude ends marginally lower in July
Crude prices ended substantially higher on Friday, 31 July, 2009. Prices rose as the dollar weakened following the GDP numbers for second quarter which showed that US economy contracted at a smaller pace than expected.
On Friday, crude-oil futures for light sweet crude for September delivery closed at $69.45/barrel (higher by $2.51 or 3.7%). For the week, crude ended higher by 2.1%.
For the month of July, 2009, crude ended lower by a marginal 0.6%. 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 47% since then. Year to date, in 2009, crude prices are higher by 45.4%.
In the currency market on Friday, the dollar index, a six-currency gauge of the greenback's value, fell by almost 0.9%.
The advance Q2 GDP report showed the economy contracted at an annualized rate of -1%, marking the fourth consecutive quarter of decline. That was much improved from a downwardly revised -6.4% (from -5.5%) in the first quarter and it was also better than the expected -1.5% decline.
Also at the Nymex on Friday, August reformulated gasoline rose 5.37 cents, or 2.7%, to $2.0448 a gallon and August heating oil added 2.51 cents, or 1.4%, to $1.7938 a gallon.
September natural-gas futures fell 9 cents, or 2.4%, to $3.653 per million British thermal units. Natural gas has fallen 4.7% this month.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
Daily News Roundup - Aug 3 2009
Hedge fund DE Shaw may retain a partial stake in DLF Assets.(BS)
Bharti Airtel and South Africa’s MTN are likely to announce the fate of their negotiations today.(TOI)
TCS and Wipro apart from several others are in pursuit of Rs25bn outsourcing contract of the railways. (ET)
Financial Technologies plans to divest 52% in the MCX-SX bourse by September-end. (ET)
Hindustan Unilever drops plan to sell South Mumbai headquarters. (ET)
SAIL registers 14% growth in steel production at 1.08mt in July over the year-ago period. (ET)
Maruti Suzuki posts 33% yoy growth in car sales in July.(BL)
Hero Honda reports sales of 0.37mn units in July.(BL)
TVS Motors reports 20.4% yoy fall to 42,998 units in motorcycle sales in July.(BS)
Bajaj Auto plans to launch its second new motorcycle for the year creating a new category or segment in the motorcycle market. (BS)
DLF plans to launch 16mn sq ft of residential space in the current fiscal.(ET)
Unitech to raise Rs10bn via QIPs for fresh investment.(FE)
Ranbaxy secures an approval from the Himachal Pradesh government to build a new drug manufacturing facility in Baddi.(BS)
JP Associates plans to invest Rs10.5bn for setting up a Greenfield cement plant in Assam. (BS)
Lanco Infratech to mop up US$100-150mn through QIP route. (ET)
Bank of India cuts deposit rates by 0.25-0.5% across various tenures, effective from today.(BS)
JK Tyre plans to set up radial unit in Tamil Nadu for an investment of Rs16bn. (ET)
Tata Steel plans to produce half the iron ore and coking coal for Corus by 2012. (BS)
Tata Motors edges closer to signing a financial aid package with the British government for its struggling UK subsidiary Jaguar Land Rover. (BS)
Dabur India has forayed into the premium skincare market by launching a new product range.(BS)
Air India is mulling canceling delivery of six Boeing-777 long-haul aircraft.(BS)
Essar Oil acquires 50% stake in a 4mn tonnes oil refinery in Kenya. (BS)
Hindalco plans to raise funds through GDR issue. (BS)
ONGC gets government approval to partner L N Mittal for buying 25% stake in Kazakhstan’s prospective Satpayev oilfield in the Caspian Sea.(BS)
Power Finance Corporation to approach banks and financial institutions to raise Rs900bn as part of the National Electricity Fund. (BS)
Andhra Pradesh government seeks to blacklist IVRCL.(DNA)
TVS group commences manufacturing tubes from its new plant at Pantnagar in Uttarakhand, from July.(BS)
IOC raises jet fuel prices marginally by 1.6%.(BS)
JSW Energy may go for an IPO to raise funds for its plans to step up power generation capacity to 12,000 Mw from the present 800 Mw. (BS)
Foreign exchange reserves rose by US$1.5bn to $268bn for the week ended July 24.(BL)
DoT proposes to EGoM to auction all the spectrum available in one go but to limit the number of operators to four.(BS)
DoT suggests WiMax base price at 25% of 3G reserve.(BL)
Government mulling incentives for services sector in the Foreign Trade Policy, expected to be announced in mid-August.(BS)
RBI has further extended interest subsidy to exporters by another six months.(ET)
Power Ministry to move SC on KG-D6 basin gas.(FE)
DoT rejects TRAI call on spectrum management.(FE)
The government may levy a 10% royalty on iron ore on ad valorem basis. (BS)
Union government to extend duty-free import of raw sugar for another eight months.(ET)
The Federation of Indian Airlines calls off its decision to suspend domestic operations on August 18. (BS)
The government withdraws tax concessions enjoyed by consortiums of foreign and Indian engineering firms that undertake infrastructure projects. (ET)
A ride on the wild side!
I think the thing to do is to enjoy the ride while you're on it.
A topsy-turvy ride is on the cards though freefalls are not an immediate fear. Today, we see a cautious start and a choppy day ahead as global markets are throwing mixed signals.
One will think the market will weigh valuations against earnings. Results, both in India as well as abroad, have largely been encouraging. But, dig deeper and one may find it was mostly due to reduced costs rather than rising topline. The classic revenue-driven growth will take a while to materialise. And, so will the overall economic activity.
On the whole the undertone is expected to remain cautiously optimistic. The news flow and a whole host of data points will mostly be positive. The markets could rally further if they turn out to be stronger than anticipated. However, selling pressure at higher levels can only be expected.
A big concern is the deficient monsoon, and its possible adverse fallout. Farm output could get hit, which in turn will push the already high food prices. What could add to the inflationary woes is the Centre’s bloated fiscal deficit.
A Chinese manufacturing index climbed to a one-year high in July as the government's stimulus spending stoked domestic demand, countering a slump in exports. Australian manufacturing sector contracted in July at the slowest pace since September.
The dollar traded near the weakest level in two months versus the euro as investors shifted toward higher-yielding currencies before a report that is forecast to show that US manufacturing output touched the highest level in almost a year.
The July jobs report will be keenly followed for more clues about an economic recovery in the US. The Obama administration will report on the July labor market on Friday. Economists expect that only 275,000 jobs were lost in July on a seasonally adjusted basis, the fewest since last August and significantly lower than the 467,000 lost in June. The unemployment rate is expected to rise to 9.7% from 9.5%, the survey says. It would be the highest unemployment rate in 26 years.
Top US officials said on Sunday it may be necessary to extend jobless benefits to firm up an economic recovery unlikely to create jobs until next year and declined to rule out future tax increases to tame massive budget deficits. Although output in the US economy will begin to turn positive in the second half of this year, job growth will take longer, White House economic adviser Lawrence Summers told Sunday morning talk shows.
Meanwhile, Former Fed Chairman Alan Greenspan said on Sunday that signs of stabilization and increased confidence in the US economy could be dashed if home prices were to take another turn downward.
Iran's OPEC governor expects crude prices to reach $80 a barrel by January, the oil ministry website, SHANA, reported on Sunday. Commodity prices may rise further in 2010 as the global recession abates, said Nouriel Roubini, the New York University economist who predicted last year's worldwide financial meltdown.
FIIs were net buyers of Rs5.82bn in the cash segment on Friday on a provisional basis while the local funds too pumped in Rs3.16bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs6.6bn. On Thursday, the foreign funds were net buyers of Rs11.84bn in the cash segment. With this, their net purchases of Indian stocks have crossed $7.3bn.
The latest government report showed on Friday that the US economy contracted at a 1% annual pace in the second quarter, a better-than-expected showing and the strongest signal to date that the recession, the longest since World War II, is finally winding down.
The Commerce Department said the slippage in gross domestic product for the April to June period came after the economy was in a free fall, tumbling at a 6.4% pace in the first three months of the year, worse than the earlier estimate of 5.5%. That made the first quarter the worst for the economy in nearly three decades.
The BSE Sensex rose to its highest level in 2009 led by positive earnings reported by India Inc. Also, FM’s announcement of additional stimulus measures to accelerate pace of economic growth and RBI’s forecast for GDP growth at 6.5% in the current fiscal boosted the sentiments on Dalal Street. Finally, the Sensex rose 1.9% and NSE Nifty rose 1.5% during the week.
On Friday, the BSE Sensex advanced 282 points or 1.8% at 15,670 after touching a high of 15,733 and a low of 14,449. The index opened at 15,449 against the previous close of 15,387. The NSE Nifty advanced 65 points or 1.4% to shut shop at 4,636.
In Asia, the Nikkei in Japan ended up by 1.9% at 10,356, while Australia's S&P/ASX ended higher by 1.2% at 4,244. The Hang Seng index in Hong Kong gained by 1.7% to end at 20,573. Shanghai index in China gained 2.5% to end at 3,412.
In Europe, stocks were mixed. The FTSE in the UK was down 0.2%. The DAX was down 0.5% and the CAC 40 was down 0.3%.
Coming back to India, among the BSE sectoral indices, the FMCG index was the top gainer, gaining 3.1%, followed by the Oil & Gas index that was up 2.6%. The BSE Bankex index up 2% and the BSE IT index was up 1.8%.
The BSE Mid-Cap index gained 1.1% and the BSE Small-Cap index ended flat.
Within the Sensex, the major gainers were Hindalco, Tata Motors, ONGC, SBI, HUL, Reliance Industries, ITC and Sterlite Industries. Among the major losers were Bharti, RCom, Hero Honda, DLF and NTPC.
Outside the frontline indices, the top gainers included Bharat Forge, Max India, Mundra Port, Nestle and Bajaj Holdings.
Among the big loser in the broader market were CESC, Ackruti, LITL, Divis Lab, Chambal Fert, GMDC and HCL Tech.
The BSE IT Index (up 4.9%): The top gainer in the IT sector was Patni. The stock shot up by over 30% during the week. The company’s Q2 revenues were up 3.3% at US$161.9mn while Net Income increased 91.7% sequentially to US$28.7mn.
Oracle Financial rose over 15% during the week. The company posted a net income of Rs1.86bn for the quarter ended June 30, 2009 as compared to Rs1.06bn for the quarter ended June 30, 2008. Total Income has decreased from Rs6.81bn for the quarter ended June 30, 2008 to Rs6.70bn for the quarter ended June 30, 2009.
Among the other major gainers were Mphasis (up 12.5%), TCS (up 9.1%) and Wipro (up 6.4%).
The top losers were Sasken Communication (down 3%) and Mahindra Satyam (down 0.1%).
Financial Technologies fell 1.2% during the week. The company posted a net profit of Rs205.37mn for the quarter ended June 30, 2009 compared to Rs1.7bn for the quarter ended June 30, 2008. Total income has decreased to Rs649.57mn for the quarter ended June 30, 2009 from Rs2.54bn for the quarter ended June 30, 2008.
The BSE Consumer Index: The top gainers in the consumer durables space were Mirc Electronics (up 9.7%) and Su-Raj Diamonds (up 6.1%).
The top losers in the consumer durables space were Titan (down 7%), Videocon Industries (down 2.3%) and Samtel Color (down 2%).
The BSE Healthcare Index (down 1.6%): The top losers in the Pharma space were Marksans Pharma (down 7.4%), Divi Labs (down 5.4%) and Morepen Labs (down 4.2%).
Sun Pharmaceutical declined by 5% during the week. The company posted a net profit after minority interest of Rs1.63bn for the quarter ended June 30, 2009 as compared to Rs5.01bn for the quarter ended June 30, 2008 thereby posting a decline of 67% decline YoY.
The top gainers in the Pharma space were Cadila Healthcare (up 19.4%), Torrent Pharma (up 15.1%), Ipca Labs (up 14.7%) and Panacea Biotec (up 13.2%).
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