Weekly Review - Aug 4 2009
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Tuesday, August 04, 2009
Asian markets ends mixed
Shanghai, Sydney ends higher while Sensex, Taiex ends lower
Stock market in Asian region closed mixed on Tuesday, 4 August 2009, as the overnight sharp surge on Wall Street buoyed up once again and lifted most of the key indices in the region to new multi-month highs in the initial trade. But the gains couldn’t be sustained as investors decided to book some profits on the renewed hopes about the recovery.
On Wall Street, investors had quite a sideshow Monday as the Securities Exchange Commission charged Bank of America with a list of unpleasant offenses before a lightning-quick settlement. In addition, good earnings, auto sales and the S&P 500 topping 1000 for the first time since November 2008, after better-than-expected data on U.S. manufacturing and a surprise increase in construction spending helped the major indices to start the month of August with more than 1% gains.
The Dow Jones Industrial Average rose 114.95 points, or 1.3%, to 9286.56, and the S&P 500 tacked on 15.15 points, or 1.5%, to 1002.63. The Nasdaq Composite added 30.11 points, or 1.5%, to 2008.61.
The stock of Bank of America closed up 3.6% at $15.32, after the Securities and Exchange Commission charged the bank with making materially false and misleading statements and misstating its agreement with Merrill Lynch regarding year-end bonuses. The bank immediately settled the charges, agreeing to pay a $33 million penalty, without admitting guilt. It also announced an executive shakeup.
On the economic front, the Institute for Supply Management said midmorning Monday that manufacturing contracted for the 18th consecutive month, but at a slower rate in July. The purchasing managers' index rose to 48.9, up from 44.8 the month prior and topping expectations for 46.5. ISM said the overall economy still grew for the third straight month and the new orders index increased 6.1 percentage points to 55.3.
More positive data came from the Commerce Department, which reported construction spending increased 0.3% in June after a 0.8% decline in May and vs. expectations for a drop of 0.5%.
In the commodity market, crude oil fell from a seven-week high on speculation that prices have risen faster than a recovery in fuel demand.
Crude oil for September delivery fell as much as $1.06, or 1.5 percent, to $70.52 a barrel on the New York Mercantile Exchange. It was at $71.10 a barrel at 2:33 p.m. Singapore time. Yesterday, futures rose $2.13, or 3.1 percent, to $71.58, the highest settlement since 12 June 2009.
Brent crude oil for September settlement dropped as much as $1.31, or 1.8 percent, to $72.24 a barrel on London’s ICE Futures Europe Exchange. It was at $73.25 a barrel at 2:42 p.m. in Singapore.
Gold declined on speculation that the metal’s rise to an almost two-month high may cause investors to sell some of their holdings. Gold for immediate delivery fell 0.2% to $954.60 an ounce at 2:20 p.m. in Singapore.
In the currency market, the US dollar and Japanese yen turned sideway in Asia as markets digest yesterday's losses.
The Japanese yen was quoted at 95.2 against the US dollar, up from Monday’s quote of 95.03 yen.
The Hong Kong dollar was trading at HK$ 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 set a high for the year for the third day in a row as the Reserve Bank of Australia dropped its easing bias, suggesting rates could rise here well before the rest of the developed world.
The Reserve Bank of Australia left interest rates unchanged at 3%, but closed the door on the chance of further easing in an expression of confidence on the economy at home and abroad.
The Aussie had risen a cent to as far as $US0.8471 before the announcement, but drifted off to $US0.8422 after as the statement was not as hawkish as some had wagered on. At the close of local trade, the dollar was buying $US0.8433, up form yesterday's close of $US0.8357.
In Wellington trade, the New Zealand dollar stayed up around its 10-month high against the US greenback today and it could be headed higher. At 5pm today the NZ dollar was worth US66.77 cents, up from US66.30c yesterday.
The South Korean won ended at 1,218.0 won to the U.S. dollar, up 4.4 won from Monday's close, this year's highest level. Solid foreign stock buying boosted demand for the won.
The Taiwan dollar strengthened strongly against the greenback. The Taiwan dollar added against the US dollar as it was trading higher at NT$ 32.6720, up by NT$ 0.0940 from Monday’s close of NT$32.7680.
Coming back in equities, Asian markets ended mixed, with the advance on Wall Street and recent gains in commodities broadly lifting shares of miners and energy producers.
In Japan, the share markets finished the session higher, as strong gains in the shares of marine transportation, securities trading firm. Tech exporters were stronger on signs of US economic recovery. Materials and resources and oil & coal shares bounced amid expectations a recovering global economy will boost demand. At the closing bell, the Nikkei 225 Stock Average index surged 22.54 points, or 0.2%, to 10,375.01, while the broader Topix index rose 1.46 points, 0.1%, to 959.02.
In Mainland China, Shanghai benchmark indices surged with the benchmark index registering its fourth consecutive day of surge in a row buoyed by materials and energy sector after firmer base metals and crude oil prices and strong gains on Wall Street overnight and yesterday on more signs of economic activity picking up speed.
At closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, added 0.26% to 3,471.44, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, dived 0.01% to 3,786.62.
In Hong Kong, the benchmark Hang Seng Index erased early gains to finish the session edged lower as losses among properties and major heavyweight amid worries about companies’ valuation offset gains by HSBC after solid corporate results. Chinese banks were lower amid fears that the Beijing might tighten capital requirements and crimp banks’ ability to lend.
The Hang Seng Index tumbled 10.83 points, or 0.05%, to 20,796.43, while the Hang Seng China Enterprise has lost 149.53 points, or 1.21%, to 12,218.57.
In Australia, the stock market surged with the benchmark index registering its fourth consecutive day of surge in a row powered by strength in the materials and resources and energy sector after firmer base metals and crude oil prices and strong gains on Wall Street overnight. Financials
extended recent gains after Goldman Sachs and Citigroup upgrade rating for major Australian banks.
At the closing bell, the benchmark S&P/ASX200 index surged 45.9 points, or 1.08%, to 4,309.3, meanwhile the broader All Ordinaries spurted 43.4 points, or 1.02%, to 4,313.9.
On the economic front, the Australian Bureau of Statistics said the short-term visitor arrivals dropped a seasonally adjusted 5.1% month-on-month in June. On an adjusted basis, visitor arrivals decreased to 442,500 in June from 466,200 in the preceding month. Meanwhile, the short-term tourist departures fell a seasonally adjusted 0.4% in June from May to 508,200
The Australian Bureau of Statistics reported Tuesday that retail sales declined a seasonally adjusted 1.4% to A$19.42 billion in June2009, compared to A$19.70 billion in May2009. Retail sales for the June quarter rose 2%
The Australian Bureau of Statistics the house price index climbed 4.2% in the June 2009 quarter. This was considerably above the forecast 2% rise.
The Reserve Bank of Australia (RBA) left its key interest rate unchanged as expected for the fourth month. The official cash rate now stands at 3%, the lowest level in 49 years.
In New Zealand, stock market continued to rise higher by more than 1%, with the benchmark index registering its fourth consecutive day of surge in a row on Tuesday. The early confidence in this country came after global stocks surged to a nine-month high, with improved economic data coming out of the United States and China. Asian markets were mostly higher early Tuesday following strong gains on Wall Street. The NZX50 increased by 1.45% or 44.95 points to 3092.80. The NZX 15 ascended 1.40% or 80.02 points to close at 5718.36.
In South Korea, stocks closed 0.09% higher led by auto and tech shares. The benchmark Korea Composite Stock Price Index (KOSPI) rose 1.39 points to 1,566.37, marking a four-day gaining streak. Foreign investors scooped up a net 530 billion won worth of local shares, tracking recent bullish Wall Street trading.
In Singapore, the stock market stumbled as investors took profits in major blue chip following a strong recent rally. Shares of banks and finance dragged down the market amid cautious about risks arising from higher valuations and expensive share prices. properties and multi-industries shares were mixed amid bout of profit booking and dip buying. The blue chip Straits Times Index slid 32.88 points, or 1.23%, to 2,648.76.
In Taiwan, benchmark index gave up its 7000 mark as posted the worst single day drop in more than three weeks, closing the day at lowest level in two weeks, as investors continued to book profit from technology and financial stocks which leaded the recent rally in the regional stock market. The domestic market also sidelined the positive cues given by the Wall Street closing.
The main Taiex share index continued to loose its shine as it dumped 100.84 points or 1.43%, closing the day at 6955.87, the lowest closing since 21 July 2009 when markets closed the day at 6953.34. It is also the worst single day percentage drop since 13 July 2009 when market tanked 239.04 points.
On the economic front, the number of unemployment benefit applicants totaled an estimated 110,000 in July, down by 24,578 from a month earlier. According to the Bureau of Labor Insurance (BLI), in the same month the number of first-time applicants saw a monthly drop of 2,151 to around 14,000. Lo Wu-hu, deputy general manager of Bureau of Labor Insurance indicated that a person has to have been covered by labor insurance for at least one year before being qualified to apply for unemployment benefits. So new college graduates are unqualified to apply for such benefits. This may explain the drop in applicants for unemployment benefits in July, usually a month with a high jobless rate.
In Philippines, the stock market sustained its upward trend, closing nearly 2% higher, buoyed by positive earning reports released by the local companies. Furthermore the investors are looking forward for the July inflation data, which will be released tomorrow. The investor’s are expecting the inflation to ease further, which will provide the monetary boardroom for further domestic policy easing.
At the final bell, the benchmark index PSEi mounted 1.82% or 51.85 points to 2,886.96, while the All Shares index rose 1.91% or 34.21 points to 1,820.27
In India, key benchmark indices edged lower, reversing gains in the preceding three trading sessions, as lower European stocks and US index futures triggered profit taking after a recent solid rally.
The BSE 30-share Sensex was down 93.25 points or 0.59% to 15,830.98. The Sensex opened 38.42 points higher at 15,962.65. The Sensex rose 78.23 points at the day's high of 16,002.46 in early trade, its highest level since 2 June 2009. The Sensex lost 225.10 points at the day's low of 15,699.13 in mid-afternoon trade
The S&P CNX Nifty was down 30.90 points or 0.66% to 4,680.50. The Nifty struck high of 4731.45, it’s highest since 4 June 2008 in opening trade.
Elsewhere, Malaysia's Kula Lumpur Composite index went up 0.73% or 8.57 points to 1179.88 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2360.09.
In other regional market, European shares couldn't build on strong gains from the previous session on Tuesday, with food producers and telecoms under pressure, although the banking sector gained as lenders BNP Paribas and UBS updated on second-quarter trends. On a regional level, the U.K. FTSE 100 index declined 0.8% or 37.21 points to 4,645, the German DAX index fell 0.74% or 40.24 points to 5,387 and the French CAC-40 index lost 0.56% or 19.50 points to 3,458.
BSE Bulk Deals to Watch - Aug 4 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
4/8/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD B 197814 1158.12
4/8/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD S 197814 1158.26
4/8/2009 531761 AMULYA LEAS RAJESHKUMAR GOYAL B 70000 9.83
4/8/2009 531761 AMULYA LEAS KINOFOLK INDUSTRIES LTD. B 118300 9.83
4/8/2009 531761 AMULYA LEAS VIKASH KUMAR SINGH S 103700 9.83
4/8/2009 531761 AMULYA LEAS JAY PRAKASH S 101000 9.83
4/8/2009 532995 AVON CORP S V ENTERPRISES B 459639 11.24
4/8/2009 532995 AVON CORP S V ENTERPRISES S 459252 11.04
4/8/2009 530427 CHOKSI IMAG JAY K PANDYA S 20050 31.60
4/8/2009 532528 DATAM GLOB DELTA INFOSOLUTIONS PVT LTD B 1754285 26.25
4/8/2009 532528 DATAM GLOB AMRITA VIDUR BHOGILAL B 583089 26.25
4/8/2009 532528 DATAM GLOB ANEESHA ADITYA DALMIA B 583089 26.25
4/8/2009 532528 DATAM GLOB PRIYADARSINI KANODIA S 2920463 26.25
4/8/2009 504351 EMPOWER INDS SEEMA DEVI B 50000 18.42
4/8/2009 533090 EXCEL INFO TRANSGLOBAL SECURITIES LTD. B 194917 104.16
4/8/2009 533090 EXCEL INFO MATRIX EQUITRADE PVT. LTD. B 132363 106.83
4/8/2009 533090 EXCEL INFO OPG SECURITIES P LTD B 596460 105.41
4/8/2009 533090 EXCEL INFO JMP SECURITIES PVT LTD B 106146 105.61
4/8/2009 533090 EXCEL INFO A.A.DOSHI SHARE & STOCK BROKERS LTD B 111524 105.19
4/8/2009 533090 EXCEL INFO MATRIX EQUITRADE PVT. LTD. S 132363 106.33
4/8/2009 533090 EXCEL INFO OPG SECURITIES P LTD S 596460 105.52
4/8/2009 533090 EXCEL INFO A.A.DOSHI SHARE & STOCK BROKERS LTD S 111524 105.18
4/8/2009 533090 EXCEL INFO TRANSGLOBAL SECURITIES LTD. S 194917 104.10
4/8/2009 531387 HASTI FINANC SONAL NITIN SOMANI B 414128 13.17
4/8/2009 531387 HASTI FINANC NITIN PRABHUDAS SOMANI B 732126 13.07
4/8/2009 531387 HASTI FINANC RAJESH MANGALCHAND JHAVERI B 26000 14.15
4/8/2009 531387 HASTI FINANC GRISHMA V JHAVERI B 25000 13.11
4/8/2009 531387 HASTI FINANC COMET INVESTMENT PVT.LTD. B 25000 13.75
4/8/2009 531387 HASTI FINANC HASTIMAL BABULAL SURANA HUF S 128200 13.17
4/8/2009 531387 HASTI FINANC BABULAL DILIP KUMAR SURANA HUF S 128000 13.17
4/8/2009 531387 HASTI FINANC SURESHCHAND SURANA S 212258 13.14
4/8/2009 531387 HASTI FINANC SUNITHA S 125136 13.13
4/8/2009 531387 HASTI FINANC KEVALCHAND SARALA S 150000 13.28
4/8/2009 531387 HASTI FINANC DILIPCHAND SURANA S 152850 13.07
4/8/2009 531387 HASTI FINANC BABULAL SURESHCHAND SURANA HUF S 153000 13.06
4/8/2009 531387 HASTI FINANC ANJUDEVI SURANA S 100000 13.14
4/8/2009 531387 HASTI FINANC PADAM CHAND SURANA S 128000 13.17
4/8/2009 524826 JUPITER BIOS FAIRDEAL INFIN SERVICES PVT. LTD. B 130509 71.36
4/8/2009 524826 JUPITER BIOS FAIRDEAL INFIN SERVICES PVT. LTD. S 109009 71.39
4/8/2009 524826 JUPITER BIOS MACQUARIE BANK LIMITED S 475000 70.64
4/8/2009 530255 KAY POW PAP JOLLY GUPTA B 116501 7.67
4/8/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 203698 7.58
4/8/2009 530255 KAY POW PAP NARENDER GUPTA B 241510 7.44
4/8/2009 530255 KAY POW PAP B.S.KHANDELWAL B 258218 7.93
4/8/2009 530255 KAY POW PAP JOLLY GUPTA S 94046 7.90
4/8/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 211201 7.29
4/8/2009 530255 KAY POW PAP SUMANGUPTA S 66213 7.52
4/8/2009 530255 KAY POW PAP OMPARKASH GUPTA S 122872 7.55
4/8/2009 530255 KAY POW PAP NARENDER GUPTA S 189646 7.50
4/8/2009 530255 KAY POW PAP KAY CHANDRA IRON ENGINEERING WORKS PRIVATE LIMITED S 300000 8.00
4/8/2009 530255 KAY POW PAP GIRRAJ PRASAD GUPTA S 149080 7.52
4/8/2009 531892 KHANDWA SECU FALCON BROKERAGE STOCK/PMS PVT LTD B 100000 24.50
4/8/2009 531892 KHANDWA SECU FALCON BROKERAGE PVT LTD S 74000 24.50
4/8/2009 507759 LIME CHEM DUKE SPECIAL OPPORTUNITIES FUND LLC S 35466 4.39
4/8/2009 506605 POLYCHEM LTD VIRSUN INVESTMENTS PVT LTD B 3500 108.50
4/8/2009 506605 POLYCHEM LTD GINNERS & PRESSERS LTD S 3500 108.50
4/8/2009 532689 PVR LTD REL CAP TRUSTEE CO LTD A/C RELIANCE MEDIA AND ENTERTAINMENT FUND B 500000 103.00
4/8/2009 532689 PVR LTD FIMHK FIDELITY FUNDS MAURITIUS LTD S 429275 103.00
4/8/2009 502587 RAMA PUL PAP ELLKAY BUILDERS PRIVATE LTD B 48800 10.24
4/8/2009 500368 RUCHI SOYA FINDEAL INVESTMENTS PVT LTD B 1000000 61.00
4/8/2009 500368 RUCHI SOYA XITIJ INVESTMENTS B 1000600 61.01
4/8/2009 500368 RUCHI SOYA CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD S 2000000 61.00
4/8/2009 532841 SAHYA INDU HITESH RAMJI JAVERI S 55000 81.20
4/8/2009 524540 SECUN HEALTH SALIM KASMANI B 24010 28.90
4/8/2009 524540 SECUN HEALTH SANKARARAO YALAMANCHI S 75851 28.90
4/8/2009 503297 SUP SYNCOT I VSL SECURITIES PVT LTD B 402617 1.28
4/8/2009 503297 SUP SYNCOT I IFCI LIMITED S 200000 1.28
4/8/2009 503297 SUP SYNCOT I INDUSTRIAL FINANCE CORPORATION OF INDIA S 200000 1.28
4/8/2009 503657 VEER ENERGY HEMLATA RAMESH HANKARE B 7000 176.27
4/8/2009 503657 VEER ENERGY MANNALAL JAIN JITENDRA B 7000 176.71
4/8/2009 503657 VEER ENERGY HEMLATA RAMESH HANKARE S 7000 176.54
4/8/2009 503657 VEER ENERGY MANNALAL JAIN JITENDRA S 7000 176.27
4/8/2009 531874 VENUS VENT AMRUT SECURITIES LTD. B 28000 35.72
4/8/2009 531668 VISION CORPO WINSURE TRADE INV P LTD S 232009 7.18
4/8/2009 531668 VISION CORPO JAGDISH RAMNIKLAL SHETH S 128100 7.18
4/8/2009 531249 WELL PACK PA PANDYA HARDIK M B 44984 158.03
4/8/2009 531249 WELL PACK PA HEMANT MADHUSUDAN SHETH B 25000 159.00
4/8/2009 531249 WELL PACK PA KISHORE B CHAUHAN S 30000 159.33
4/8/2009 531249 WELL PACK PA PANDYA HARDIK M S 40736 158.66
4/8/2009 532788 XL TEL ENE JMP SECURITIES PVT LTD B 91221 42.64
4/8/2009 522108 YUKEN INDIA HEMANT S SHETH B 19525 70.34
4/8/2009 531845 ZENITH BIRLA PRITI ANILBHAI GANDHI S 224085 25.04
NSE Bulk Deals to Watch - Aug 4 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
04-AUG-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,319459,1157.22,-
04-AUG-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,BUY,207443,1156.80,-
04-AUG-2009,ABAN,Aban Offshore Ltd.,SMC GLOBAL SECURITIES LTD.,BUY,138474,1162.15,-
04-AUG-2009,EXCELINFO,Excel Infoways Limited,BP FINTRADE PRIVATE LIMITED,BUY,170477,106.29,-
04-AUG-2009,EXCELINFO,Excel Infoways Limited,CHOKHANI SECURITIES LTD,BUY,110825,102.09,-
04-AUG-2009,EXCELINFO,Excel Infoways Limited,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,117895,106.05,-
04-AUG-2009,EXCELINFO,Excel Infoways Limited,NEETU PARIN SHAH,BUY,167884,98.73,-
04-AUG-2009,EXCELINFO,Excel Infoways Limited,TRANSGLOBAL SECURITIES LTD.,BUY,147483,104.00,-
04-AUG-2009,EXCELINFO,Excel Infoways Limited,VAIBHAV DOSHI,BUY,174730,104.90,-
04-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,11623667,23.30,-
04-AUG-2009,SRTRANSFIN,Shriram Trans Fin Co. Ltd,ICICI PRUDENTIAL LIFE INSURANCE CO LTD,BUY,2000000,300.00,-
04-AUG-2009,SRTRANSFIN,Shriram Trans Fin Co. Ltd,LLOYD GEORGE MANAGEMENT (HONG KONG) LTD A/C SOUTH ASIA - SAP,BUY,1041100,300.00,-
04-AUG-2009,TRIL,Transformers And Rectifie,SBI MF,BUY,179949,293.50,-
04-AUG-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1305814,20.34,-
04-AUG-2009,ZENITHBIR,Zenith Birla (India) Limi,AYODHYAPATI INVESTMENT PVT.LTD,BUY,180443,24.56,-
04-AUG-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,319459,1157.73,-
04-AUG-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,SELL,211138,1157.36,-
04-AUG-2009,ABAN,Aban Offshore Ltd.,SMC GLOBAL SECURITIES LTD.,SELL,189675,1157.27,-
04-AUG-2009,EXCELINFO,Excel Infoways Limited,BP FINTRADE PRIVATE LIMITED,SELL,176967,105.62,-
04-AUG-2009,EXCELINFO,Excel Infoways Limited,CHOKHANI SECURITIES LTD,SELL,110825,102.68,-
04-AUG-2009,EXCELINFO,Excel Infoways Limited,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,117895,106.07,-
04-AUG-2009,EXCELINFO,Excel Infoways Limited,NEETU PARIN SHAH,SELL,167884,105.28,-
04-AUG-2009,EXCELINFO,Excel Infoways Limited,TRANSGLOBAL SECURITIES LTD.,SELL,147483,104.29,-
04-AUG-2009,EXCELINFO,Excel Infoways Limited,VAIBHAV DOSHI,SELL,174730,104.95,-
04-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,11756470,23.32,-
04-AUG-2009,SRTRANSFIN,Shriram Trans Fin Co. Ltd,UNO INVESTMENTS,SELL,8000000,300.01,-
04-AUG-2009,TRIL,Transformers And Rectifie,SBI MF,SELL,179949,293.50,-
04-AUG-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1305814,20.34,-
04-AUG-2009,ZENITHBIR,Zenith Birla (India) Limi,ANIL AMRUTLAL GANDHI,SELL,231808,24.07,-
04-AUG-2009,ZENITHBIR,Zenith Birla (India) Limi,AYODHYAPATI INVESTMENT PVT.LTD,SELL,558443,25.36,-
04-AUG-2009,ZENITHBIR,Zenith Birla (India) Limi,KOOKMEN SECURITIES P LTD,SELL,225000,25.43,-
Choppy, marginally down
Despite US indices closing in the green, the Indian stock market seemed to have lost steam after a strong opening. The benchmark opened with a positive gap of 16 points at 15940 and touched the day's high of 16002 within a few minutes of trading on brisk buying in heavyweights. However, it shed its early gains on account of heavy selling in realty, teck, health care and power stocks and entered the negative territory by afternoon. The Sensex swung between negative and positive thereafter, as investors turned cautious due to lack of clarity. The Sensex tumbled below the 15700 mark towards afternoon session to touch the intra-day low of 15699 amid relentless selling pressure, but buying at lower levels helped the Sensex pare some of the losses. The Sensex finally closed at 15831, down 93 points, while Nifty ended 31 points down at 4681. However the market breadth was firm, as gainers outpaced losers. Of the 2,794 stocks traded on the BSE, 1,480 stocks advanced, whereas 1,242 stocks declined. Seventy two stocks ended unchanged. Of the 13 sectoral indices on the BSE only four were up and that only marginally. BSE CD (up 1.41%), BSE Auto (up 0.51%), BSE FMCG (up 0.36%) and BSE Oil & Gas were up for the day. BSE Teck dropped 1.41% followed by BSE HC (down 1.35%), BSE Power (down 1.28%), BSE Realty (down 1.20%) and BSE IT (down 1.10%). Most of the index heavyweights witnessed correction. Among the Sensex majors, Tata Motors tumbled 4.42% to Rs1,298.20, Oil and Natural Gas Corporation dropped 2.98% to Rs1,141.05, Reliance Infrastructure lost 2.78% to trade at Rs1,188.80, Bharti Airtel slumped 2.57% to Rs400.55, Reliance Communications slipped 2.55% to Rs282.50, JP Associates shed 2.33% to Rs244.75, DLF lost 1.80% to Rs398.35, Wipro fell 1.77% to Rs482.35, Tata Steel crumbled 1.77% to Rs475.05 and HDFC Bank dipped 1.58% to Rs1,470.15. Other front-line stocks lost around 1% each. However, select counters saw some buying and ended with gains. Hindalco Industries advanced 4.39% to Rs112.95 while Hindustan Unilever, Tata Motors, Reliance Industries, Maruti Suzuki India, Mahindra & Mahindra ended with modest gains. Mahindra Satyam was the most traded share on the BSE with over 1.84 crore shares changing hands on the BSE followed by Ispat Industries (1.83 crore shares), Suzlon Energy (1.59 crore shares), Unitech (1.56 crore shares) and Hindalco Industries (1.23 crore shares). In value terms Reliance Capital was the most actively traded counter with a turnover of Rs219 crore followed by Mahindra Satyam (Rs198 crore), Reliance Industries (Rs191 crore), ICICI Bank (Rs178 crore) and Tata Motors (Rs176 crore).
Sensex retraces after hitting 14-month high above 16,000
Key benchmark indices edged lower, reversing gains in the preceding three trading sessions, as lower European stocks and US index futures triggered profit taking after a recent solid rally. The BSE 30-share Sensex lost 93.25 points or 0.59%, off 171.48 points from the day's high and up 131.85 points from the day's low. Realty, power and IT stocks underwent correction even as auto stocks extended recent gains on robust July 2009 sales.
As per the provisional data released by the stock exchanges, foreign funds today, 4 August 2009, bought stocks worth a net Rs 219.10 crore and domestic funds mopped equities worth Rs 253.29 crore.
Among stock specific activity, Tata Power lost over 4% on profit booking, while ONGC dropped around 4% on fall in crude oil. Tata Motors rose over 2% on healthy July 2009 monthly sales. Hindalco gained over 3% on rise in global metal prices.
Stocks were volatile. The market edged higher in early trade on overnight rally in US stocks. The barometer index BSE hit the psychological 16,000 mark for the first time in more than 14 months at the onset of the trading session. But the market lost ground later.
The market cut losses in early afternoon trade as index heavyweight Reliance Industries (RIL) and State Bank of India (SBI) rose. The Sensex moved into the positive zone before slipping into the negative zone shortly. The market weakened in mid-afternoon trade. The Sensex cut losses in choppy late trade.
Strong Q1 results from India Inc have triggered a solid recent rally on the bourses in the past few days. The Q1 June 2009 results of India Inc were encouraging, with lower costs helping bottomline growth. The combined net profit of 2870 companies rose 17.20% to Rs 73664 crore on 5% fall in sales to Rs 719293 crore in Q1 June 2009 over Q1 June 2008.
Foreign institutional investors (FIIs) bought shares worth Rs 475.90 crore on Monday, 3 August 2009. FII inflow in calendar year 2009 totaled Rs 36,645.70 crore (till 3 August 2009).
World equity funds garnered $9.5 billion in the week ending 29 July 2009, according to data with global fund tracker EPFR Global. The inflow is 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, the Indian government on Monday, 3 August 2009 introduced the Companies Bill, 2009, in the Lok Sabha. When enacted, this will bring about significant changes in the way business is done in India, make it easier to start and close businesses, and protect shareholders. While the Bill was introduced in the Lok Sabha in October 2008, it could not be taken any further. The country went to the polls in May 2009 and the Bill lapsed.
There are sings that the Indian economy is recovering from a slowdown last year. 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 released during trading hours on Monday, 3 August 2009, 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.
But data released by the government on Monday, 3 August 2009 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.
A weak monsoon also 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.
A Finance Ministry report on Tuesday, 4 August 2009, said the government will take steps to moderate inflation and prune unproductive spending. The government will focus on fiscal consolidation to sustain growth, the report said.
The government on Monday, 3 August 2009 said raising foreign direct investment (FDI) cap in the insurance sector to 49% will not result in automatic change of management in a company. The government is proposing to raise the FDI cap in private sector insurance companies from 26% to 49% and a bill to give effect to the proposal is pending in the Rajya Sabha.
Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply in the Lok Sabha that there is no proposal to extend the limit of FDI in banking and media. At present, FDI up to 26% in media sector and 74% in banking is allowed.
European equities inched lower on Tuesday after hitting a nine-month high in the previous session, with investors pausing for breath after an impressive rally in the past few days. Key benchmark indices in UK, Germany and France were down by between 0.74% and 0.94%.
Profit taking capped gains in Asian stocks after recent strong gains. Key benchmark indices in South Korea, China and Japan were up by between 0.09% and 0.26%. However key indices in Hong Kong, Singapore and Taiwan were down 0.05% and 1.43% respectively.
Trading in US index futures showed the Dow could fall 53 points at the opening bell on Tuesday, 4 August 2009.
US stocks advanced on Monday, 3 August 2009, to their highest closes since November 2008 following encouraging economic reports from the US and abroad. The Dow Jones Industrial average gained 114.95 points, or 1.25%, to 9,286.56.The S&P 500 index rose 15.15 points, or 1.53%, to 1,002.63. The Nasdaq Composite index increased 30.11 points, or 1.52%, to 2,008.61.
The Institute for Supply Management (ISM) manufacturing index made its seventh straight increase by coming in at 48.9 for July 2009 as compared with 44.8 in June 2009. The reading was better than economist expectation of 46.5. Construction spending data for June 2009 made a surprise 0.3% increase. It was expected to fall 0.5%.
The BSE 30-share Sensex was down 93.25 points or 0.59% to 15,830.98. The Sensex opened 38.42 points higher at 15,962.65. The Sensex rose 78.23 points at the day's high of 16,002.46 in early trade, its highest level since 2 June 2008. The Sensex lost 225.10 points at the day's low of 15,699.13 in mid-afternoon trade
The S&P CNX Nifty was down 30.90 points or 0.66% to 4,680.50. The Nifty struck high of 4731.45, its highest since 4 June 2008 in opening trade. Nifty August 2009 futures were at 4676, at a discount of 4.50 points as compared to the spot closing.
The BSE Sensex had gained 750.77 points in three trading days to 15924.23 on 3 August 2009 from 15173.46 on 29 July 2009. The barometer index BSE Sensex is up 6183.67 points or 64.09% in calendar year 2009 as on 4 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7670.58 points or 93.99% as on 4 August 2009.
Coming back to today's trade, the BSE clocked a turnover of Rs 6590 crore, higher than Rs 5624 crore on Monday, 3 August 2009. Turnover in NSE's futures & options (F&O) surged to Rs 60,859.86 crore from Rs 50,805.16 crore on Monday, 3 August 2009.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1501 shares advanced as compared with 1246 that declined. 75 shares remained unchanged. The breadth turned negative in mid-afternoon trade in contrast to strong breadth in early trade.
The BSE Mid-Cap index was down 0.24% to 5,688.73 and the BSE Small-Cap index was up 0.32% to 6,333.95. Both the indices outperformed Sensex.
The BSE Auto index (up 0.51%), the BSE Metal index (down 0.32%), the BSE Oil & Gas index (up 0.24%), BSE Consumer Durables index (up 1.41%), the BSE FMCG index (up 0.36%), the BSE PSU index (down 0.50%), the BSE Capital Goods index (down 0.28%), outperformed the Sensex.
The BSE Power index (down 1.28%), BSE Realty index (down 1.20%), the BSE IT index (down 1.10%), the BSE Teck index (down 1.41%), the BSE Bankex (down 0.71%), the BSE Healthcare index (down 1.35%), underperformed the Sensex.
Among the 30-member Sensex pack, 19 declined while the rest rose
India's second largest private sector power generation firm by sales Tata Power lost 4.80% to Rs 1293 and was the top loser from the Sensex pack. Profit taking after recent gains triggered by strong response for Adani Power initial public offer, weighed on the counter. The IPO of Adani Power was subscribed over 21 times on 31 July 2009.
Other power stocks Reliance Infrastructure (down 3.34%), NTPC (down 0.55%), Reliance Power (down 1.97%) also declined on profit booking.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 1% to Rs 2035.10 after oil and petroleum minister Murli Deora said that gas to be produced from RIL's KG-D6 fields has to be utilized in accordance with the gas utilization policy approved by the government.
Meanwhile, the Supreme Court on 30 July 2009 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.
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.
Oil exploration stocks slipped on fall in crude oil prices. India's largest oil exploration firm by sales ONGC lost 2.98%. India's second largest oil exploration firm by sales Cairn India slipped 2.17%. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms. Crude oil fell 1.5% to $70.52 a barrel on the New York Mercantile Exchange, after Monday's over 3% rally.
State run oil marketing companies (OMC) spurted on fall in crude oil prices. HPCL (up 3.19%), BPCL (up 4.56%), and Indian Oil Corporation (up 1.28%), gained. The slide in crude oil prices after a recent steep surge will reduce underrecoveries of the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.
PSU OMC's had increased jet fuel prices marginally by 1.6% due to rising international oil prices from 1 August 2009. The increase follows a sharp 5.7% cut in jet fuel prices two weeks ago.
Castrol India flared up 6.44%. The company's net profit rose 55.1% to Rs 128.40 crore on a 2.6% rise in sales to Rs 637.50 crore in Q2 June 2009 over Q2 June 2008. The results were announced on 27 July 2009.
Rate sensitive realty shares declined on profit booking after recent strong gains triggered by of the government's thrust on housing sector in the Union Budget 2009-2010. Unitech (down 0.79%), Indiabulls Real Estate (down 2.37%), HDIL (down 2.34%), DLF (down 1.86%), and Omaxe (down 2.38%), slipped
IT stocks extended early fall as the rupee hovered near two-month high against the dollar. India's second largest IT exporter by sales Infosys fell 1.34% even as its American depository receipt (ADR) rose 3.14% on Tuesday, 3 August 2009. India's third largest IT exporter by sales Wipro fell 1.74% even as its ADR rose 4.13% on Tuesday, 3 August 2009. However India's largest IT exporter by sales TCS rose 0.23% to Rs 532 on reports the company is a frontrunner for a Rs 2,500-crore outsourcing contract from the Indian Railways. The stock recovered from day's low of Rs 521.10
The rupee gained further towards near two-month peaks on Tuesday, 3 August 2009 on expectations for inflows into the domestic market. The partially convertible rupee was at 47.60 per dollar, off an early high of 47.43, its strongest since 12 June 2009 and slightly firm above its Monday's close of 47.635/645. A firm rupee affects operating profit margins of IT firms negatively as they earn most of their revenues from exports.
MphasiS slipped 2.83% to Rs 499 after striking record high of Rs 601.05 on profit booking after it advanced 22% in the preceding five trading sessions.
Rolta India rose 3.53% after net profit surged 41.6% to Rs 372.32 crore in the year ended June 2009 over the year ended June 2008. The company declared the results during trading hours on Monday, 3 August 2009, when the stock had declined 1.31%
India's largest cellular services provider by sales Bharti Airtel lost 2.64% on concerns it will have to sweeten its offer for a deal with South Africa's MTN. The company has 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 during trading hours on Monday.
Metal stocks advanced after LMEX, a gauge of six metals traded on the London Metal Exchange, jumped 4.92% on Monday, 3 August 2009.
India's largest aluminum maker by sales Hindalco Industries surged 3.51% to Rs 112. 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
However India's largest copper market by sales Sterlite Industries rose 0.55% after its American depository receipt (ADR) jumped 8.23% on Monday, 3 August 2009.
National Aluminium Company (up 1.77%), Jindal Saw (up 2.40%), Jindal Stainless (up 1.30%), and Maharashtra Seamless (up 3.26%) gained
However, steel stocks retreated from day's high after some steel markets announced price cuts on some products. India's largest private sector steel marker by sales Tata Steel fell 1.99% to Rs 474, off day's high of Rs 492.10.
India's largest state-run steel producer by sales Steel Authority of India lost 2.59% to Rs 175, off day's high of Rs 181.50 after the company announced a cut in prices for a second month. Prices of long products were lowered by as much as Rs 1,500 a tonne. However prices of flat products, used in automobiles, were raised by as much as Rs 900 a tonne.
India's largest private sector steel marker by sales JSW Steel declined 2.19% to Rs 728.90, off day's high of Rs 762.15. The company lowered prices of long products, but raised flat steel prices. Prices for long products, which are mainly used in construction, stand lowered by 3-4% for August whereas prices for flat steel, that go in the making of automobiles and white goods, are up by 2-3% from the previous month.
India's largest FMCG company by sales Hindustan Unilever gained 3.41% on reports the company plans to concentrate on the Rs 35,000-crore branded processed food segment. While announcing the company's results, Harish Manwani, chairman, HUL, said that foods division will become a larger part of the overall portfolio in the future.
Godrej Consumer Products surged 2.68% on reports the company is actively scouting for acquisitions in China, Latin America and the Middle East.
Auto stocks gained on reporting healthy monthly sales figures for July 2009. India's largest truck market by sales Tata Motors gained 2.26% to Rs 441 after total vehicle sales rose 18% to 48,054 units in July 2009 over July 2008. However, the stock came off day's high of Rs 468.20 after global ratings major Standard & Poor's downgraded long term corporate credit rating of the auto major to 'B' from 'B+'. The outlook is negative. At the same time, Standard & Poor's lowered the issue rating on the company's senior unsecured notes to 'B' from 'B+'.
Mahindra & Mahindra (up 1.34%), Bajaj Auto (up 1.19%), and Maruti Suzuki India (up 1.05%), edged higher.
Auto ancillary and tyre stocks gained for the second day in a row on recovery in auto sales in India and abroad. Motherson Sumi Systems (up 7.16%), Lumax Industries (up 4.12%), Amtek India (up 2.72%), Gabriel (up 3.45%), advanced. Higher auto sales will boost demand for auto parts.
Apollo Tyres (up 5.31%), Falcon Tyres (up 5%), Ceat (up 4.99%), JK Industries (up 3.78%), Goodyear India (up 5.46%), MRF (up 1.07%) were the gainers among tyre stocks
Bank stocks rebounded from the day's low. India's biggest bank in terms of branch network State Bank of India (SBI) rose 0.19% to Rs 1850, off day's low of Rs 1837.10. The state-run bank reduced interest rates on deposits by 25-50 basis points (a basis point equals one-hundredth of a percentage point) with effect from 27 July 2009, which will help reduce cost of funds.
India's largest private sector bank by net profit ICICI Bank fell 1.05% to Rs 765.25, off the day's low of Rs 754.10. India's second largest private sector bank by net profit HDFC Bank was down 1.85% to Rs 1466, off day's low of Rs 1452.
Insurance and healthcare firm Max India advanced 6.17%. The government proposes to raise the limit on foreign direct investment (FDI) in the insurance sector from 26% to 49%
Cement stocks were mixed despite healthy July 2009 monthly sales by cement makers. India's largest cement manufacturer by sales ACC rose 1.46% after its cement sales rose 4.09% to 1.78 million tonnes in July 2009 over July 2008.
Aditya Birla Group cement firms were mixed despite 10% rise in the group's cement shipments to 2.7 million tonnes in July 2009 over July 2008. Grasim slipped 0.71% while UltraTech Cement rose 0.30%.
North India's largest cement producer by sales Ambuja Cements rose 0.74% after dispatches rose 4.50% to 14.38-lakh tonnes in July 2009 as compared to 13.76-lakh tonnes in July 2008
India Cements gained 7.25% after shipments rose 19% to 10.2 lakh tonnes in July 2009 over July 2008
Dalmia Cement jumped 1.39% after cement sales rose 14.80% to 3.8 lakh tonne in July 2009 July 2008.
Reliance Capital was the top traded counter on BSE with turnover of Rs 219.57 crore followed by Mahindra Satyam (Rs 196.17 crore), Reliance Industries (Rs 191.34 crore), ICICI Bank (Rs 178.98 crore), and Tata Motors (Rs 176.11 crore).
Cals Refineries was the volume topper on BSE with volume of 3.24 crore shares on BSE followed by Mahindra Satyam (1.84 crore shares), Ispat Industries (1.83 crore shares), Suzlon Energy (1.59 crore shares), and Unitech (1.56 crore shares).
IRB Infrastructure Developers rose 3.57% after winning a contract to construct a greenfield airport in Sindhudurg district in Maharashtra. The announcement was made at the onset of trading session today, 4 August 2009.
Latest Grey Market - NHPC, Adani Power, Raj Oil Mills
NHPC 30 to 36
10 to 12
Adani Power 100
8 to 9
Raj Oil Mills 120
4 to 6
Pre Session Commentary - Aug 4 2009
Today domestic markets are likely to open positive on the back of phenomenal US economic data that has brought euphoria across Asian markets. The US ISM Manufacturing Index reported its seventh straight increase by coming at 48.9 for the month of June. Further the Consumer spending data for the month of June made a surprise gain of 0.3% raising hopes of economy recovery. In the domestic arena one could witness Sensex breaching the 17k mark and Nifty50 touch the 4800 mark. During the day’s trade there would be a broad based buying across the broader markets.
On Monday, domestic markets closed higher. 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.
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.
On Monday, the US stock markets closed higher. Broad based buying on the back of better than expected economic data helped S&P to reach its fresh psychologically significant 1000 mark. The ISM Manufacturing Index made its seventh straight increase by coming in at 48.9 for June, however the sub-50 reading still exudes contraction in the manufacturing sector, the reading was still better than what had been expected. Construction spending data for June made a surprise 0.3% increase. It was expected to fall 0.5%. The overwhelming economic data also helped commodity prices spiral. CRB commodity index gained by 3.4% and is now more than 9% during the past three sessions. Energy stocks also rallied with a gain of 2.3%. US light crude oil futures for September delivery closed at $71.53 per barrel up by 3.0% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 114.95 points at 9,286.56, NASDAQ index inclined by 30.11 points to 2,008.61 and the S&P 500 (SPX) closed higher by 15.15 points at 1,002.61.
Indian ADRs rallied on Monday. In the IT space, Satyam Computers was up 7.14%, Infosys was up 3.14%, Wipro was up 4.13% and Patni Computers was up 1.11%. In the banking space, ICICI Bank was up 5.9% and HDFC Bank was up 3.44%. In the telecom space, MTNL was up 4.28% and Tata Communication was up 3.53%. In other sectors, Sterlite Industries was up 8.23%, Tata Motors was up 7.2% and Dr Reddy''s Labs was up 2.27%.
The FIIs on Monday stood as net buyers in equity. Gross equity purchased stood at Rs 3,079.80 Crore, while the gross equity sold stood at Rs 2,292.20 Crore and gross debt purchased stood at Rs 0.00 Crore, while gross debt sold stood at Rs 0.00 Crore. The net investment of equity reported was Rs 787.60 Crore and net debt was Rs 0.00 Crore.
On Monday, the partially convertible rupee ended at Rs 47.64/65, 0.63% stronger than its previous close at 47.49/50. The rupee gained strength on the back of phenomenal last hour rally in the local stock markets.
On BSE, total number of shares traded were 40.92 Crore and total turnover stood at Rs 5,623.69 Crore. On NSE, total number of shares traded were 86.00 Crore and total turnover was Rs 16,719.34 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 74322647 shares, followed by Suzlon Energy with 62182427, Hindalco with 22237601, DLF with 13840143 and Tata Steel with 11066283 shares.
On NSE Future and Options, total number of contracts traded in index futures was 552897 with a total turnover of Rs 1,2223.10 Crore. Along with this total number of contracts traded in stock futures were 551855 with a total turnover of Rs 17,782.46 crore. Total numbers of contracts for index options were 820194 with a total turnover of Rs 19,457.31 Crore and total numbers of contracts for stock options were 39943 and notional turnover was Rs 1,342.30 Crore.
Today, Nifty would have a support at 4,765 and resistance at 4,809 and BSE Sensex has support at 16,056 and resistance at 16,235.
Gains may continue
The market is likely to see further action on the back of a firm US markets and over 1% gains in majority of the Asian indices in the prevailing trades. Surging FII fund inflows coupled with firm economy outlook also may help the market advance further. Among the key local indices, the Nifty has a strong support between 4671-4595 range, while on the upside the index could test higher level in the 4780-4825 range. The Sensex has a likely support at 15800 and may face resistance at 16063.
The US Stocks, coming off the best July in two decades, got a strong August start Monday after better-than-expected readings on manufacturing and car sales added to bets that the economy is starting to stabilize. While Dow Jones industrial average (INDU) added 115 points, or 1.3%, ending at a fresh 9-month high and the Nasdaq composite (COMP) gained 30 points, or 1.5%, closing above 2,000 for the first time since last November.
Indian ADRs witnessed strong buying support on US bourses. Rediff notched up significant gains and soared over 13% . The other Indian floats, Satyam, Tata Motors, ICICI Bank, MTNL and Wipro surged over 4-7% each. while Infosys, Dr Reddy's, HDFC Bank, VSNL and Patni Computers were up around 1-3% each.
Crude oil prices gained sharply. The US light crude oil for September series advanced by $2.13 at $71.58 a barrel. In the commodity space, the Comex gold for December delivery surged by $3 to settle at $958.80 an ounce.
Market may extend gains on firm global stocks
Key benchmark indices are likely to extend recent strong gains on firm global stocks. After hitting a 14-month high on Monday, 3 August 2009, the barometer index, the BSE Sensex, is within striking distance of the psychological 16,000. Auto and cement stocks may edge higher on higher sales in July 2009
Strong Q1 results from India Inc have triggered a solid recent rally on the bourses in the past few days. The Q1 June 2009 results of India Inc were encouraging, with lower costs helping bottomline growth. The combined net profit of 2839 companies rose 17.4% to Rs 73677 crore on 5% fall in sales to Rs 718185 crore in Q1 June 2009 over Q1 June 2008.
Meanwhile, the government on Monday, 2 August 2009 introduced the Companies Bill, 2009, in the Lok Sabha. When enacted, this will bring about significant changes in the way business is done in India, make it easier to start and close businesses, and protect shareholders. While the Bill was introduced in the Lok Sabha in October 2008, it could not be taken any further. The country went to the polls in May 2009 and the Bill lapsed.
There are sings that the Indian economy is recovering from a slowdown last year. 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 released during trading hours on Monday, 3 August 2009, 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.
But data released by the government on Monday, 2 August 2009 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.
A weak monsoon also 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.
Most Asian markets were trading firm today, 3 August 2009 with Japan's Nikkei average hitting its highest level in 10 months buoyed by exporters such as Advantest Corp after data on the US manufacturing sector underscored optimism that the economy was recovering.
Key benchmark indices in Hong Kong, Taiwan, South Korea, Singapore, and Japan were up by between 0.21% and 0.83%. However China's Shanghai Composite slipped 0.73%
US stocks advanced on Monday, 2 August 2009 to their highest closes since November 2008 following encouraging economic reports from the US and abroad. The Dow Jones Industrial average gained 114.95 points, or 1.25%, to 9,286.56.The S&P 500 index rose 15.15 points, or 1.53%, to 1,002.63. The Nasdaq Composite index increased 30.11 points, or 1.52%, to 2,008.61.
The ISM manufacturing index made its seventh straight increase by coming in at 48.9 for July 2009 versus 44.8 in June 2009. The reading was better than economist expectation of 46.5. Construction spending data for June 2009 made a surprise 0.3% increase. It was expected to fall 0.5%.
Strong inflows from foreign funds has boosted the bourses in the past few weeks. 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.
Foreign funds bought shares worth Rs 347.01 crore on Monday, 3 August 2009, as per the provisional data from the stock exchanges.
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).
Crude and natural gas take a huge leap
Prices rise on upbeat economic data
Crude prices ended substantially higher on Monday, 03 August, 2009. Prices rose as the dollar weakened and also as economic data showed that though USA's manufacturing firms continued to contract, they maintained their steady improvement in July, proving that the manufacturing downturn is nearing its end.
On Monday, crude-oil futures for light sweet crude for September delivery closed at $71.58/barrel (higher by $2.13 or 3%). During intra day trading, it rose to a high of $72.1. Last 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 44% since then. Year to date, in 2009, crude prices are higher by 48.4%.
In the currency market on Monday, the dollar index, a six-currency gauge of the greenback's value, fell by almost 1%.
As per latest report, China's manufacturing purchasing managers index remained in expansionary territory for the fourth consecutive month in July, rising to 52.8, up from 51.8 in June.
At Wall Street on Monday, The Institute for Supply Management reported on Monday, 03 August, 2009 that its index rose to 48.9% in July above the 46.2% expected. It was also higher than the 44.8% in June. It's the highest reading since last August. Readings below 50% in the ISM diffusion index indicate that more firms are contracting than growing. The ISM tracks the breadth of growth across firms, asking purchasing managers if business is better or worse this month than last.
Also at the Nymex on Monday, September reformulated gasoline rose 6 cents, or 3%, to $2.07 a gallon and September heating oil gained 4 cents to $1.87 a gallon.
September natural-gas futures rallied 38 cents, or 10.4%, to $4.03 per million British thermal units on the Nymex.
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 94 (2.83%) at Rs 3,415/barrel. Natural gas for August delivery closed at Rs 191.8/mmbtu, higher by Rs 16.9/mmbtu (9.7%).
Daily News Roundup - Aug 4 2009
Bharti Airtel and MTN have extended exclusive merger talks until August 31, 2009. (ET)
L&T bagged two offshore platform contracts worth over Rs53bn from ONGC. (FE)
L&T plans to raise about US$600mn through the qualified institutional placement (QIP) route. (BS)
NTPC plans to diversify into renewables and hydro. (BS)
Wipro's consumer care business logged robust growth in Q1 FY10, accounting for 9% of total turnover. (BS)
Supreme Court asks BPCL to pay Rs50mn as pre-deposit to the Kerala commercial tax department towards sales tax. (FE)
Indian Hotels to look at various methods of raising funds to meet its future expansion plans. (BS)
HCL Technologies plans to convert the remaining part of ~Rs32.5bn bridge loan taken from Standard Chartered Bank of the UK last year into long-term debt. (ET)
SAIL produced 1.08mn tons of saleable steel in July 2009, a 14% increase in production on a yoy basis. (BL)
Sun Pharma has settled its dispute with US-based Medimmune for marketing a generic version of latter’s ethyol, a drug used in the treatment of head and neck cancer. (ET)
Wockhardt, Biocon insulin prices to fall by 70%. (ET)
Corporation Bank plans to raise an additional Rs7bn from bonds in the Q2 FY10. (FE)
The Government has told Parliament that GAIL India’s eight JVs for retailing CNG to automobiles and piped gas to industries have been authorised by the Centre and do not need fresh authorization from sector regulator, PNGRB. (FE)
ITC plans to expand facilities for biscuits, staples and confectionery in southern and eastern India. (FE)
Godrej Consumer is actively scouting for acquisition in China, Latin America and the Middle East. (ET)
A US Court ruled in the favour of Daiichi Sankyo in a patent litigation related to the anti-hypertensive drug, Benicar, against Mylan Inc and its Indian subsidiary, Matrix Laboratories. (BS)
The radio business of Adlabs Films Ltd (AFL), Big 92.7FM has been demerged from AFL into Reliance Unicom Ltd and will be listed on the stock exchanges soon. (FE)
Adani Power IPO issue price fixed at Rs100 per share. (ET)
The civil construction of the Rs50bn alumina refinery project of Utkal Alumina, a subsidiary of the Aditya Birla Group, near Kasipur in Orissa’s Rayagada district has resumed after being stalled for about two months. (BS)
Essar Group is looking at merging its telecom licence for Uganda with the Dhabi Group’s operations in that country. (ET)
Private equity fund D E Shaw to retain US$100mn investment in DLF assets. (FE)
South Asia Multimedia Technologies Ltd, a subsidiary of Sun TV has raised its stakes in South Asia FM Ltd from 6.98% to 20%. (FE)
Emami Biotech plans to invest Rs4bn in a plantation project in Oromia, Ethiopia within 5-6 years. (ET)
Yuksom Breweries has acquired Rhino Breweries in Assam for over Rs400mn. (ET)
Indian exports fell by 28% yoy to US$12.8bn during June 2009, dipping for the ninth month in a row. (BS)
The Petroleum Minister, Mr. Murli Deora, told the Parliament that the Government will protect its right to use and allocate gas. (BL)
The government proposes to raise the FDI in private sector insurance companies from 26% to 49%. (ET)
Government to levy stiff penalties for software pirates in new copyright law. (ET)
The government has declined to provide tax relief on the expensive energy-efficient consumer. (ET)
The Markit Purchasing Managers’ Index (PMI) for the month of July remained stationary on a mom basis at 55.3. (BS)
Bank credit to the sensitive sector comprising real estate and capital markets rose at a slower pace of 14.12% in 2008-09 compared to 26.1% in 2007-08. (BS)
Maharashtra state’s sugar production is estimated to drop by 30-40% yoy in 2009-10. (ET)
Sweet little 16!
Success is sweet and sweeter if long delayed and gotten through many struggles and defeats.
After over a year of struggles and defeats, the bulls have reached a comfortable level to kiss 16K on the Sensex. The market is set to open higher and the next resistance for the Nifty is 4850 level.
Risk appetite seems to be improving by leaps and bounds. Consider this: the prices of the most traded risky European and US loans have touched 12-month highs. Stocks and commodities are soaring. Emerging market currencies are firming up while the dollar and yen have taken a beating. Investors are also deserting government bonds. Upbeat reports on manufacturing and housing sent the S&P 500 past 1,000 for the first time since November. New US vehicle sales have hit an 11-month high in July, mainly due to government incentives.
Back home too, there are a number of new "green shoots" that could propel the key indices to new 2009 highs. Earnings have been good. Auto, steel and cement sales continue to climb. Manufacturing output remains promising though exports are still in a limbo. Fiscal deficit and its attendant offshoots like high interest rates and spike in inflation could pose challenges. But, the bulls are in no mood to contemplate such ills.
There are concerns on valuations as the market may have risen too far, too fast. Some correction is imminent after a sharp surge. So, one should not get carried away by seeing stock indices breach new milestones. The continuation of a rally is going to be dependent on leading economic indicators showing strength and a commensurate reflection in corporate earnings.
Japan's Nomura Holdings has downgraded developing-nation stocks to "underweight" from "overweight" in its recommended portfolio because valuations look "stretched." The rally in emerging-market stocks has pushed valuations to 17.8 times companies’ reported earnings for the past 12 months, the highest level since the MSCI index peaked in October 2007. That exceeds the ratio of 17.2 for the S&P 500.
FIIs were net buyers of Rs3.47bn in the cash segment on Monday on a provisional basis while the local funds too pumped in Rs610.1mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs4.17bn. On Friday, the foreign funds were net buyers of Rs7.87bn in the cash segment. With this, their net purchases of Indian stocks have crossed $7.4bn.
US stocks got off to a strong start in August after better-than-expected readings on manufacturing and car sales added to bets that the economy is starting to stabilize.
The Dow Jones Industrial Average added 115 points, or 1.3%, to 9,286.56, ending at a fresh nine-month high. The S&P 500 index added 15 points, or 1.5%, to 1,002.63, ending above the 1,000 level for the first time since last November. The Nasdaq Composite index gained 30 points, or 1.5%, to 2,008.61, closing above 2,000 for the first time since last November.
US stocks had the best July in two decades after a spate of better-than-expected quarterly results reassured investors that the world's largest economy is getting closer to stabilizing. Last week, the first-quarter GDP report showed the economy shrank at a 1% rate, versus forecasts for a bigger contraction.
In July, the Dow gained 8.6%, its best July since 1989 and its best month overall since October 2002. The S&P 500 gained 7.4%, its best July since 1988 and its best month since April. The Nasdaq rose 7.8% in the month, its best July since 1997 and the best month overall since this past April.
The Institute for Supply Management's (ISM) manufacturing index rose to 48.9 in July from 44.8 in June. That was better than the 46.5 economists were expecting, but still short of the 50 level that indicates expansion in the sector.
Construction spending rose 0.3% in June versus forecasts for a decline of 0.5%. Spending fell 0.9% in May.
Ford Motor reported a gain in July auto sales and other major automakers cut losses, as the government's "Cash for Clunkers" program helped stimulate sales of cars and trucks. Ford said July sales rose 2% versus a year ago. It is the first U.S. automaker to report a rise in monthly sales since November 2007.
GM, Toyota, Chrysler and Honda all said sales fell versus a year ago, but rose versus June levels, thanks to "Cash for Clunkers". The popular program gives consumers a rebate check for as much as $4,500 if they exchange their gas guzzler vehicles and buy a fuel-efficient one. But the program could run out of cash by mid-week if the Senate doesn't approve the additional $2 billion in funding the House of Representatives approved last week.
With two-thirds of the S&P 500 having reported results, profits are on track to have fallen 29.5% from a year ago, according to the latest Thomson Reuters numbers. However, that's an improvement from a month ago, when profits were expected to fall more than 35%.
Profit reports have been topping expectations across the board, with roughly 74% of companies exceeding forecasts, versus the long-term average of 61% of companies.
Google CEO Eric Schmidt has resigned from the Apple board, as the Internet search leader is developing more and more products that compete with Apple's core businesses. Google gained 2%, while Apple gained 1.9%.
Bank of America has agreed to pay $33 million to settle charges that it mislead investors about Merrill Lynch's plans to pay bonuses to its executives. Bank of America completed its purchase of Merrill Lynch on Jan. 1.
Separately, BofA said Sallie Krawcheck, Citigroup's former head of global wealth management, will run BofA's global wealth and investment management operations.
US light crude oil for September delivery rose $2.13 to settle at $71.58 a barrel on the New York Mercantile Exchange.
COMEX gold for December delivery rose $2.90 to settle at $958.70 an ounce.
Treasury prices tumbled as investors pulled money out of the safe-haven commodity. The slump raised the yield on the benchmark 10-year note to 3.63% from 3.48% late on Friday.
In currency trading, the dollar fell versus the euro and rose against the Japanese yen.
On Tuesday morning, the Commerce Department releases its June readings on personal income and spending. Also Tuesday morning, the National Association of Realtors releases the pending home sales index.
European shares jumped, led by banks, after reports that UBS may avoid a fine from the US and as HSBC surprised investors by beating forecasts with its earnings. The pan-European Dow Jones Stoxx 600 index climbed 1.6% to 228.43, a level not seen since Nov. 4.
Germany's DAX index rose 1.8% to 5,426.85 and the French CAC-40 index was up 1.5% to 3,477.80. The UK's FTSE 100 index advanced 1.1% to 4,682.46, a level not seen since Oct. 3.
Indian markets ended at 52-week high on Monday with the NSE Nifty index managing to close above the 4,700 mark for the first time since June 6, 2008. Better than expected sales numbers by the auto companies coupled with firm cues from the international equity markets lifted the sentiments on Dalal Street.
The Auto, Realty, Metals and the Power stocks were among the major gainers. Even the Mid-Cap and the Small-Cap stocks participated in the upswing. On the other hand, the Consumer Durables and the FMCG stocks were offloaded.
The BSE Sensex advanced 254 points or 1.6% at 15,924 after touching a high of 15,963 and a low of 15,608. The index opened at 15,695 against the previous close of 15,670. The NSE Nifty advanced 75 points or 1.6% to shut shop at 4,711.
In Asia, the Nikkei in Japan ended flat at 10,352 while Australia's S&P/ASX ended higher by 0.5% at 4,263. The Hang Seng index in Hong Kong gained by 1.1% to end at 20,807. Shanghai index in China gained 1.5% to end at 3,462.
In Europe, stocks were trading higher. The FTSE in the UK was up 1.6%. The DAX gained 1.6% and the CAC 40 was up 1.5%.
Coming back to India, among the BSE sectoral indices, the Auto index was the top gainer, gaining 4.6%, followed by the Realty index that was up 4.1%. The BSE Metal index up 3.4% and the BSE Power index was up 2.1%.
The BSE Mid-Cap index gained 2.3% and the BSE Small-Cap index ended higher by 1.7%.
Within the Sensex, the major gainers were Hindalco, M&M, RCom, BHEL, Tata Steel, Tata Power, JP Associates and Maruti. Among the major losers were HUL, ITC, HDFC Bank and HDFC.
Outside the frontline indices, the top gainers included Bharat Forge, Biocon, Aban, Jubilant, Praj Industries, Cummins India and Renuka Sugar.
Among the big loser in the broader market were Divi’s Lab, MTNL, IOC, Castrol India and Nestle.
Oil Minister Murli Deora said on Monday that the first priority was to allot KG-Basin gas to existing power plants. He also added that the proposed Dadri plant of RNRL would get gas when it was ready to start producing power. "The Dadri plant will get gas subject to availability", he added.
Shares of RNRL ended flat at Rs83.9. The stock opened at Rs84.5 and made an intra-day high of Rs85 and a low of Rs81.8. Total traded volumes stood at 9.7mn shares.
While, shares of Reliance Industries surged by 3% to Rs2014. The stock opened at Rs1960 and made an intra-day high of Rs2032 and a low of Rs1958. Total traded volumes stood at 0.8mn shares.
Shares of Hero Honda gained by 1% to Rs1621 after the company reported a jump of 30.39% in its sales at 3,66,808 units in July compared to the sales in the same month last year.
Hero Honda had reported a jump of 83.28% in its net profit at Rs5bn for the quarter ended June 30 on account of robust sales amidst softening of input costs.
The company sold 2,81,317 units in July last year. The net profit for the first quarter for the last fiscal was at Rs2.72bn.
Shares of Maruti Suzuki gained by 4% to Rs1469 after the company announced that it posted 33% yoy growth in car sales in July. The stock opened at Rs1425 and made an intra-day high of Rs1478 and a low of Rs1421. Total traded volumes stood at 0.17mn shares.
Shares of DLF gained by 2.4% to Rs405 after reports stated that the company plans to launch 16mn sq ft of residential space in the current fiscal. Reports also stated that Hedge fund DE Shaw may retain a partial stake in DLF Assets. The stock opened at Rs396 and made an intra-day high of Rs407 and a low of Rs385. Total traded volumes stood at 4.2mn shares.
Shares of Suzlon Energy declined by over 4% to Rs95.6 after reporting a loss in the first quarter. The loss in the Q1 was Rs4.53bn compared with a profit of Rs93mn a year earlier.
The stock opened at Rs94.4 and made an intra-day high of Rs97 and a low of Rs90. Total traded volumes stood at 20.1mn shares.
Shares of Financial Technologies gained by 5% to Rs1485 after reports stated that the company plans to divest 52% in the MCX-SX bourse by September-end. The stock opened at Rs1430 and made an intra-day high of Rs1495 and a low of Rs1421. Total traded volumes stood at 73,000 shares.
Shares of SAIL advanced by 2.4% to Rs179 after the company announced thatit registered 14% growth in steel production at 1.08mt in July over the year-ago period. The stock opened at Rs176 and made an intra-day high of Rs180 and a low of Rs174. Total traded volumes stood at 1.7mn shares.
Shares of Wanbury were locked at 20% upper circuit to Rs70.50 after the company reported net sales of Rs837.4mn for the quarter ended 30th June 2009, registering a growth of 25.6%, as compared to Rs666.6mn in the corresponding quarter of last fiscal.
Net Profit was Rs94.8mn, as compared to Rs14.3mn in the corresponding quarter of last fiscal, grown by 5.62 times.
Precious metals rise for third straight day
Gold and silver prices gain as dollar plunges
Precious metal prices rose for third straight time on Monday, 03 August, 2009. Prices rose as the dollar weakened today and also as stocks across the world rallied overnight on hopes of quicker than expected global economic recovery.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Monday, gold for August delivery ended at $956.6, higher by $2.9 (0.3%) an ounce on the New York Mercantile Exchange. It rose as high as $964 earlier. Last week, gold ended almost unchanged. Year to date, gold prices are higher by 7.8%.
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 (9.2%) since then.
On Monday, Comex silver futures for September delivery gained 31.2 cents (2.2%) at $14.252 an ounce. Last 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 27.2% this year. For 2008, silver had lost 24%.
In the currency market on Monday, the dollar index, a six-currency gauge of the greenback's value, fell by almost 1%.
As per latest report, China's manufacturing purchasing managers index remained in expansionary territory for the fourth consecutive month in July, rising to 52.8, up from 51.8 in June.
At Wall Street on Monday, The Institute for Supply Management reported on Monday, 03 August, 2009 that its index rose to 48.9% in July above the 46.2% expected. It was also higher than the 44.8% in June. It's the highest reading since last August. Readings below 50% in the ISM diffusion index indicate that more firms are contracting than growing. The ISM tracks the breadth of growth across firms, asking purchasing managers if business is better or worse this month than last.
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 lower by Rs 52 (0.35%) at Rs 14,769 per 10 grams. Prices rose to a high of Rs 14,888 per 10 grams and fell to a low of Rs 14,751 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 286 (1.3%) higher at Rs 22,758/Kg. Prices opened at Rs 22,516/kg and rose to a high of Rs 23,020/Kg during the day's trading.
Indiabulls Real Estate
We recommend a buy in Indiabulls Real Estate from a short-term trading perspective. It is evident from the stock’s charts that after forming a triple bottom, bullish reversal pattern spanning between October 2008 and May 2009, it broke out of the neckline at Rs 160 emphatically in May. Since March low of around Rs 82, the stock has been on an intermediate-term uptrend. In mid-July, it conclusively penetrated its 21 and 50-day moving averages and is trading way above these averages. Moreover, on Monday, the stock broke through a medium-term resistance at Rs 250, on above average volume. Both daily and weekly momentum indicators are hovering in the bullish zone. The intermediate-term up trendline is intact and still in place. Our short-term outlook is bullish on the stock. We expect it to move up further until it hits our price target of Rs 288 in the upcoming trading sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 247.
via BL
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