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Monday, August 10, 2009
Raj Oil Mills to list on 12 August 2009
The IPO was priced at Rs 120 per share
Shares of Mumbai-based Raj Oil Mills will debut on the secondary stock markets on Wednesday, 12 August 2009. The shares will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The company had priced its initial public offer at the top end of the Rs 100-Rs 120 price band. The issue price of Rs 120 discounts the company's year ended December 2008 earnings per share (EPS) of Rs 8.2, with a price earning (PE) multiple of 14.63.
The IPO had closed for on 23 July 2009, with a total subscription of 1.24 times. The company received bids for 1.17 crore shares compared with 95 lakh shares on offer. The issue constituted 26.38% of the fully diluted post-issue paid-up capital of the company.
Raj Oil Mills is a branded player in the edible oil business. It is engaged in processing and marketing of vegetable oils. The company plans to use issue proceeds to set up various facilities at Manor, Thane district, Maharashtra. These include a refinery of 200 tonnes per day (tpd), which can process Sunflower, Soyabean, Groundnut, Palm, Cotton Seed oils; a crushing unit of 200 tpd for Groundnut and Copra; a Palm Fractionation unit of 100 tpd; and a Vanaspati Ghee unit of 50 tpd, an Ayurvedic and Cosmetic unit of 5 tpd and an in-house blow moulding plant for PET Bottles.
The funds of the IPO will also fund setting up of crushing unit of 200 tpd for sesame and mustard at Bagru, Jaipur district, Rajasthan; for brand promotion, expansion of marketing & distribution network and for setting up of research and development facilities. The margin money for working capital requirement and issue expenses will also be met out of issue proceeds.
The company reported a net profit of Rs 29.62 crore on sales of Rs 317.76 crore in the year ended December 2008.
Nifty August 2009 futures at a huge discount
Turnover rises
Nifty August 2009 futures were at 4388.05, at a huge discount of 49.60 points as compared to the spot closing of 4437.65. Turnover in NSE's futures & options (F&O) segment rose to Rs 68,493.48 crore from Rs 65,231.26 crore on Friday 7 August 2009.
Reliance Industries August 2009 futures were at discount at 1976.10 compared to the spot closing of 1988.10.
Tata Steel August 2009 futures were at discount at 447.50 compared to the spot closing of 456.05.
ICICI Bank August 2009 futures were at a slight discount at 717.20 compared to the spot closing of 718.70.
In the cash market, the S&P CNX Nifty lost 43.75 points or 0.98% at 4437.65.
Asian markets celebrates healthy economic reports
Nikkei trespassed 10,500 mark while Hang Seng nears 21,000 mark
Stock markets in Asian region finished mostly higher on Monday, 10 August 2009, as Nikkei trespassed the 10,500 mark for the first time in ten months, buoyed by a strong close on Wall Street Friday after a U.S. jobs report underpinned hopes the world's largest economy was on track for recovery. Additionally, an unexpected surge in Japan's core machinery orders in June, a closely watched indicator of corporate capital spending also boosted investor sentiment.
On Wall Street, stocks ended with good gains for the week that ended on Friday. The gains were led by healthy economic reports, mainly in the housing and employment sectors. There were also a large number of earnings reports, and most of them beat expectations. The Dow Jones Industrial Average ended higher by 113.8 points at 9,370.07. The Nasdaq Composite Index, ended higher by 27.09 points at 2,000.25. S&P 500 ended higher by 13.4 points at 1,010.48.
On the economic front, the Labor Department reported that the unemployment rate, in July 2009 unexpectedly fell to 9.4% as nearly a half a million people dropped out of the labor market. U.S. non-farm payrolls declined by 247,000 to 131.5 million in July, the 19th consecutive month of job losses. It was the fewest lost payroll jobs since last August 2008.
But the number of people who've been out of work longer than six months soared by a record 584,000 to 5 million, accounting for more than a third of all unemployment for the first time on record.
In the commodity market, crude oil fell for a third day in New York after gasoline futures declined on signs of slowing seasonal demand for auto fuel late in the U.S. summer.
Crude oil for September delivery fell as much as 71 cents, or 1%, to $70.22 a barrel in after-hours electronic trading on the New York Mercantile Exchange, and traded at $70.39 at 2:18 p.m. in Singapore.
Brent crude oil for September settlement declined as much as 43 cents, or 0.6%, to $73.16 a barrel on London’s ICE Futures Europe exchange, and was at $73.23 at 2:18 p.m. Singapore time.
Gold declined after an unexpected drop in U.S. unemployment drove the dollar higher, eroding the appeal of the precious metal as an alternative investment. Gold for immediate delivery lost 0.3% to $952.20 an ounce at 8:28 a.m. in Singapore, dropping for a fourth day.
In the currency market, the US dollar retreats mildly as the week starts to digest Friday's sharp gain. But after all, downside is limited so far as the greenback is supported by mild weakness in commodities with crude oil hovering around 70 level while gold stays sold below 960. Asian stocks are broadly higher following strength in US but provide little inspiration to currency markets so far.
The dollar slipped against the yen in Asian trading Monday, after Japanese government data showed core machinery orders jumped more than forecast, as did the nation's current-account surplus. The Japanese yen was quoted at 97.28 against the US dollar, up from Friday’s quote of 95.38-39 yen.
The Hong Kong dollar was trading at HK$ 7.7503 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 was flat after a better than expected US jobs report had traders buying American dollars in anticipation that the US Federal Reserve might be prepared to raise interest rates sooner than expected. At the local close, the dollar was trading at $US0.8389, up a touch from Friday's close of $US0.8388. During Monday's local session, the local unit moved between $US0.8336 and $US0.8404.
In Wellington trade, the New Zealand dollar rose today after bouncing around during the weekend reflecting movements in the US dollar. The NZ dollar was US67.35c at 5pm, up from US66.99c at 8am. The NZ dollar spiked to a fresh 10 month high of US68c on Friday night but then was knocked back toward US67c as the US dollar strengthened against all the major currencies. It was US67.07c at 5pm on Friday.
The South Korean won ended at 1,228.2 won against the dollar, down 3.2 won from Friday's close, as the greenback remained strong in markets across the world.
The Taiwan dollar weakened against the greenback. The Taiwan dollar added against the US dollar as it was trading lower at NT$ 32.8250, down by NT$ 0.0330 from Thursday’s close of NT$32.7920.
Coming back in equities, a weaker yen and robust economic data boosted Japanese stocks Monday, while mainland Chinese markets fell for a fourth straight session on continued speculation that Beijing will impose restrictions on property transactions.
In Japan, the shares market ended higher, as positive sentiment flowed through from Friday’s stronger-than-expected US employment numbers and better-than-expected Japanese core machinery orders. Consumer and automotive companies lead the rally, boosted by increased Japanese machine orders. Export related shares benefited from weakening of the yen. Shares of iron & steel, nonferrous metals and mining companies bounced as base metal prices surged. Banks and properties rose on tacking US peer.
At the closing bell, the Nikkei 225 Stock Average index climbed up 112.17 points, or 1.08%, to 10,524.26, while the broader Topix index put on 12.48 points, 1.3%, to 969.24.
On the economic front, a data from the Cabinet Office showed that Japanese machinery orders climbed 9.7% in June, the first time in four months. The nation’s current-account surplus more than doubled from a year earlier to 1.15 trillion yen ($11.8 billion) in June, the Ministry of Finance said.
In Mainland China, share market tumbled enduring losses for fourth consecutive day, dragged down by major banks and properties amid investors’ caution over possible changes on the monetary policy after last week central bank comment about fine-tuning its policy heralds a curbing of liquidity into the market. At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, dropped 0.34% or 10.93 points to 3,249.76, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, dived 0.3% or 10.56 points to 3,544.54.
On the economic front, the National Development and Reform Commission said in a report that House prices in 70 major cities in China climbed 1% in July from the prior year, while it gaind 0.9% from June 2009.
In Hong Kong, the benchmark index surged on tracking a strong finish on Wall Street and strong rally in HSBC and China mobile lifted by persistent hopes of a listing in Shanghai. Financials and properties rebounded as bargain hunters stepped in after comments from Chinese Premier Wen Jiabao soothed worries the mainland authorities would take measures to rein in liquidity. Materials stocks rebounded after copper prices climbed amid optimism that the global recession may be easing.
The Hang Seng Index advanced 554.15 points, or 2.72%, to 20,929.52, while the Hang Seng China Enterprise has bounced 289.47 points, or 2.49%, to 11,901.65.
In Australia, the stock market managed to stay above line amid profit booking in the afternoon trading session after opening higher inspired by higher base metal prices and strong lead from Wall Street. Property trusts, consumer staples, healthcare, and telecommunications stocks finished higher. At the closing bell, the benchmark S&P/ASX200 index added 4.7 points, or 0.11%, to 4,304.1, meanwhile the broader All Ordinaries put on 6.1 points, or 0.14%, to 4,309.2.
In New Zealand, equities on the New Zealand stock market started the week firmly. The NZX50 rose by 0.48% or 11.98 points to 3080.97. The NZX 15 ended flat at 5656.03.
On the economic front, the New Zealand Manufacturers and Exporters Association called for the Reserve Bank to lower the OCR immediately to alleviate the strain of the NZ dollar's strength on exporters. However, economists at Westpac issued a warning against calls for the Reserve Bank to lower the official cash rate (OCR) in a bid to weaken the New Zealand dollar.
In South Korea, shares remained virtually unchanged as investor sell-offs outweighed the market's earlier gains. The benchmark Korea Composite Stock Price Index (KOSPI) gained 0.11 points or 0.01 percent to 1,576.11.
In Taiwan, stock market in Taiwan demoted the ‘Morakot’ typhoon that slammed in to Taiwan on Thursday night by starting the week on positive note, as cement and construction sector shares jumped after a typhoon hit the island resulting into the rising demand for reconstruction work. Taiwan's stock market was closed on Friday because of a typhoon over the weekend.
The main Taiex share index rose 14.22 points or 0.21%, closing the day at 6882.87, starting the week on a positive note despite of havoc caused by ‘Morakot’ a typhoon that slammed into Taiwan overnight, leaving at least six people dead or missing and more than a dozen injured, officials and media reported Saturday.
On the economic front, Taiwan’s consumer price index (CPI) dropped an annual 2.33% in July, the largest fall since November 1970 or in 39 years. Likewise, the wholesale price index (WPI) dipped a record 14.11%.
According to the Cabinet-level Directorate General of Budget, Accounting and Statistics (DGBAS), in the same month the core CPI, excluding prices of fresh vegetables, fruits and fish as well as energy, dropped the second consecutive monthly 0.93%, the largest of its kind since July 2003. Insiders say the sharp declines in CPI and WPI might fuel deflation on the island.
The July CPI stood at 104.28, edging up 0.19% from a month earlier and a new high in six months. However, the figure is still lower than the 106-plus figure recorded from July to November of last year, due to the high international oil prices.
The July WPI posted at 102.21 for a monthly rise of 1.05%, a new high in eight months. Compared to the same month of last year, WPI of products sold domestically and locally made products for Taiwan dived 16.26% and 16.58%, respectively, both were the largest drops of their kinds.
Influenced by economic downturn, the turnover posted by F&B outlets (dining-out expenditures) saw an annual growth of negative 0.2% in July, the first fall since June 2004.
In the first seven months of this year the CPI dipped an annual 0.71%. Polaris Research Institute, a prestigious private think tank here, predicted in June that Taiwan’s CPI might drop an annual 0.96% in the fourth quarter of the year, but reversed the prediction early this month, saying the CPI growth is very likely to turn positive for the quarter.
In other economic news, Taiwan’s foreign exchange reserves increased by US$3.53 billion from a month earlier to a record high of US$321.094 billion in July, remaining the world’s fourth largest, next to China, Japan, and Russia, according to the central bank here.
The central bank attributed the ballooning forex reserves to the continuing inflow of foreign funds. As of the end of July the cumulative net inflow of foreign funds reached US$136.803 billion, a new high this year; and in July alone the net inflow was US$2.392 billion or about NT$80 billion for the fifth consecutive monthly net inflow.
However, among the four Little Dragons in Asia, Taiwan saw the smallest monthly increase of US$3.53 billion in forex reserves in July; while the corresponding figures for Hong Kong was US$9.5 billion, South Korea US$5.8 billion, and Singapore US$4.7 billion.
As of the end of June China witnessed its forex reserves stand at US$2.13 trillion for a sharp quarterly rise of US$177.9 billion, leading the world. Japan took the second place with US$988.5 billion, down by US$4 billion from a month earlier; and Russia the third with US$365.4 billion for a sharp monthly rise of US$11.6 billion.
In Philippines, the stock market closed higher, as investor’s sentiments were supported by gains on the Wall Street overnight, which in turn led to the buying of key heavyweight stocks. Moreover, weighty gains in the key heavyweight stocks also assisted the composite index to scale up, especially the mining & oil index. Mining & oil index escalated more than 7%. At the concluding bell, the benchmark index PSEi ascended 2.42% or 67.60 points to 2,850.58, while the All Shares index rose 2.05% or 36.34 points to 1,807.46.
On the economic front, domestic liquidity or M3 continued to post double-digit growth in June 2009, albeit at a slower rate of 12.6% year-on-year compared to 15.0% in the previous month. On a monthly basis, seasonally adjusted M3 growth decelerated to 0.3 percent in June from 1.1 percent (revised) in May. The expansion in net foreign assets (NFA) continued to drive the growth of liquidity, even as it was lower at 17.6% from 19.8% in May.
Growth in commercial banks’ outstanding loans including reverse repurchase agreements (RRPs) continued to be in the double-digits at 11.1% year-on-year in June from 10.2% in May, to reach P2.2 trillion at end-June. Preliminary data showed that loans for production activities expanded year-on-year by 14.4% in June, lower than the 17.1% growth reported in the previous month.
In India, the key benchmark indices extended losses for the third straight day on weak European cues stocks. Fears of scanty rains also weighed on the sentiment. Sensex fell below the psychological 15,000 mark. The market pared gains after a firm starts triggered by better than expected US and Japanese economic data. It lost further ground later, slipping into the red from green as below normal monsoon rains and spread of the deadly swine flu in the country weighed on the sentiment.
The Sensex fell below the psychological 15,000 mark, however soon regained that psychological level as the market cut losses in early afternoon trade. The market moved into the green from red in early afternoon trade. The market moved between positive and negative zone in mid-afternoon trade.
Finally, the BSE 30-share Sensex finished the day 150.47 points or 1% at 15,009.77. The Sensex rose 257.10 points at the day's high of 15,417.34 in early trade. The S&P CNX Nifty fell 43.75 points or 0.98% to 4,437.65.
Elsewhere, Malaysia's Kula Lumpur Composite index went up 0.26% or 3.12 points to 1188 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2389.56.
In other regional market, European shares declined for the first time in three sessions on Monday, with German auto giants Daimler and Volkswagen dragging after downgrades at separate brokerage firms. On Monday, the DAX declined 0.8% or 43.53 points to 5,416, the French CAC-40 index lost 0.63% or 22.34 points to 3,499 and the U.K. FTSE 100 index lost 0.63% or 29.69 points to 4,702.
Looking ahead for the day, the economic calendar is light today as Euro zone Sentix investor confidence is set release, which is expected to show some improvement.
NHPC IPO subscribed 3.73 times on day two
Receives bids for 626.48 crore shares
After an overwhelming response on the first day, the initial public offer (IPO) of state-run hydro power generation firm NHPC was subscribed by a 3.73 times on the second day. The IPO got bids for 626.48 crore shares as against 168 crore shares offered by the company. More than 18.87 crore shares were bid at cut off price.
NHPC is selling 168 crore shares comprising of 5% divestment of stake by the government and infusion of 10% fresh equity. The price band for the IPO is Rs 30 to Rs 36 per equity share.
The issue will constitute 13.64% of the post-issue capital of NHPC. The IPO closes on 12 August 2009.
NHPC is the largest hydroelectric power generating company in the country. It has 13 operating hydro electric power (HEP) plants with an installed capacity of 5,175 megawatts (MW) including two power stations of total 1,520-MW capacity set up through its joint venture subsidiary Narmada Hydroelectric Development Corporation (NHDC). Current total generating capacity is 5,134.2 MW, taking into account the downgrade of the capacity ratings of Loktak and Tanakpur power stations by the Central Electricity Authority.
NHPC is constructing 11 additional hydroelectric projects, which are expected to increase the installed capacity by 4,622 MW. These plants, barring Teesta Low Dam IV, are mostly in the north and northeastern states and scheduled to be commissioned between December 2009 and March 2013. The Teesta Low Dam IV project is coming up in the Darjeeling district of West Bengal.
NHPC is also awaiting government sanction to build another five projects with an anticipated capacity of 4,565 MW on its own and another 2,166-MW capacity projects through certain JV projects. In addition, the company is surveying and investigating proposals for nine additional projects totaling 7,255 MW of anticipated capacity.
Apart from development and operation of HEP projects, NHPC also develops, designs, and delivers HEP station to clients. The company has executed two HEP projects, i.e. Kurichhu HEP in Bhutan and Devighat HEP in Nepal, on contract. Further, it also provides technical, management advisory and consultancy services to domestic and international clients.
NHPC's consolidated net profit rose 3% to Rs 1244.15 crore on 19.2% growth in sales to Rs 3493.71 crore in the year ended March 2009 (FY 2009) over the year ended March 2008.
On post-IPO equity of Rs 12300.74 crore, the EPS for FY 2009 works out to Rs 1 and the PE is 30-36 times at the offer price band of Rs 30-Rs 36.
BSE Bulk Deals to Watch - Aug 10 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
10/8/2009 524412 AAREY DRUGS DAXABEN VASANTKUMAR SHAH B 25004 40.00
10/8/2009 524412 AAREY DRUGS JIPAL PINESH SHAH B 25170 40.03
10/8/2009 524412 AAREY DRUGS NITA BANKESH BHAVSAR B 31018 40.16
10/8/2009 524412 AAREY DRUGS KAUSHIK SHAH SHARES & SEC. LTD B 65000 47.03
10/8/2009 524412 AAREY DRUGS KAUSHIK SHAH SHARES & SEC. LTD S 130000 40.01
10/8/2009 519183 ADF FOODS LT TOP CLASS EDUCATION FACILITIES SERVICES PVT LTD B 960418 40.00
10/8/2009 519183 ADF FOODS LT RAMESH HARIRAM THAKKAR S 200000 40.00
10/8/2009 519183 ADF FOODS LT BIMAL RAMESH THAKKAR S 200000 40.00
10/8/2009 519183 ADF FOODS LT MISHAL ASHOK THAKKAR S 400000 40.04
10/8/2009 519183 ADF FOODS LT BHAVESH RAMESH THAKKAR S 200000 40.00
10/8/2009 532995 AVON CORP S V ENTERPRISES B 880077 11.02
10/8/2009 532995 AVON CORP S V ENTERPRISES S 869500 10.59
10/8/2009 531682 CAT TECHNOL S V ENTERPRISES S 390454 7.01
10/8/2009 590063 DUNCANS INDU UPSURGE INVESTMENT & FINANCE LTD B 1236122 9.74
10/8/2009 590063 DUNCANS INDU ARYAVART OVERSEAS PVT LTD S 400000 9.75
10/8/2009 590063 DUNCANS INDU UTTAR PRADESH UDYOG PVT. LTD. S 801521 9.75
10/8/2009 533090 EXCEL INFO SUNEET LAL B 122460 110.80
10/8/2009 533090 EXCEL INFO OPG SECURITIES P LTD B 424141 113.81
10/8/2009 533090 EXCEL INFO BP FINTRADE PRIVATE LIMITED B 113774 118.67
10/8/2009 533090 EXCEL INFO SUNEET LAL S 122460 110.50
10/8/2009 533090 EXCEL INFO OPG SECURITIES P LTD S 424141 113.80
10/8/2009 533090 EXCEL INFO BP FINTRADE PRIVATE LIMITED S 108273 117.65
10/8/2009 530945 GANGOTRI I&S SARVAMANGLA BUILDERS PVT LTD S 50000 19.62
10/8/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 226344 6.90
10/8/2009 530255 KAY POW PAP SATISH KUMAR GUPTA B 54000 6.63
10/8/2009 530255 KAY POW PAP B.S.KHANDELWAL B 99200 6.60
10/8/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 226344 6.66
10/8/2009 530255 KAY POW PAP SATISH KUMAR GUPTA S 54000 6.75
10/8/2009 530255 KAY POW PAP KAY CHANDRA IRON ENGINEERING WORKS PRIVATE LIMITED S 100000 7.10
10/8/2009 530813 KRBL LTD HITESH SHASHIKANT JHAVERI B 136994 114.61
10/8/2009 526045 LUMINAI TECH SANJAY KUMAR B 150000 3.54
10/8/2009 526045 LUMINAI TECH RAKESH KUMAR B 150000 3.54
10/8/2009 526045 LUMINAI TECH JITLAL FINANCIAL SERVICES PRIVATE LIMITED S 141770 3.53
10/8/2009 519560 NEHA INTERNA VIJAY JAIDEO PODDAR B 100000 21.92
10/8/2009 512449 PACE TEXTILES S UTTAMCHAND HUF B 300000 51.08
10/8/2009 511702 PARSHART INV GAURAV AERI B 20000 10.50
10/8/2009 531769 PFL INFOTECH CELEBRITY CONSULTANTS PRIVATE LIMITED B 88000 4.08
10/8/2009 531769 PFL INFOTECH AYODHYAPATI INVESTMENT PVT LTD S 123000 4.07
10/8/2009 590077 RANKLIN SOLU PTNV AMBICA RAMA SUDARSHAN B 91479 31.25
10/8/2009 590077 RANKLIN SOLU RAMA RAGHAVA LAKSHMI NARASIMHAPRASAD PASUMARTHY VEERA VENKATA S 100000 31.25
10/8/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD B 54676 59.50
10/8/2009 590091 TRINETHRA IN RAMA RAGHAVA LAKSHMI NARASIMHAPRASAD PASUMARTHY VEERA VENKATA B 180000 28.98
10/8/2009 531962 VALLEY INDIA SANGEETABEN BANSIDHAR RANKA B 43195 10.49
10/8/2009 531962 VALLEY INDIA CHITRANJAN SATYANARAYAN BHARADIA HUF S 29500 10.58
10/8/2009 503657 VEER ENERGY HEMLATA RAMESH HANKARE B 8500 181.11
10/8/2009 503657 VEER ENERGY SITANSHU P NANAVATI B 7000 180.94
10/8/2009 503657 VEER ENERGY HEMLATA RAMESH HANKARE S 8500 180.76
10/8/2009 503657 VEER ENERGY SITANSHU P NANAVATI S 7000 181.51
10/8/2009 531249 WELL PACK PA SAMPATRAJ BHANDARI HUF B 35000 157.14
10/8/2009 531249 WELL PACK PA PANDYA HARDIK M B 23227 158.93
NSE Bulk Deals to Watch - Aug 10 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
10-AUG-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,195403,1085.97,-
10-AUG-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,BUY,195458,1080.25,-
10-AUG-2009,BVCL,Barak Valley Cements Limi,DB (INTERNATIONAL) STOCK BROKERS LTD.,BUY,110920,36.33,-
10-AUG-2009,EXCELINFO,Excel Infoways Limited,BP FINTRADE PRIVATE LIMITED,BUY,109170,118.29,-
10-AUG-2009,EXCELINFO,Excel Infoways Limited,DINESH MUNJAL(HUF),BUY,139115,117.86,-
10-AUG-2009,EXCELINFO,Excel Infoways Limited,SUNEET LAL,BUY,131181,110.84,-
10-AUG-2009,FSL,Firstsource Solutions Lim,PRAKASH K SHAH SHARES & SECURITIES PVT. LTD,BUY,2144161,29.39,-
10-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,9435916,21.97,-
10-AUG-2009,SASKEN,Sasken Commu Techno Ltd,ASIT C MEHTA FOREX PRIVATE LTD,BUY,170426,130.51,-
10-AUG-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,195403,1086.43,-
10-AUG-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,SELL,196258,1081.11,-
10-AUG-2009,BVCL,Barak Valley Cements Limi,DB (INTERNATIONAL) STOCK BROKERS LTD.,SELL,110920,36.37,-
10-AUG-2009,EXCELINFO,Excel Infoways Limited,BP FINTRADE PRIVATE LIMITED,SELL,107166,118.80,-
10-AUG-2009,EXCELINFO,Excel Infoways Limited,DINESH MUNJAL(HUF),SELL,139115,117.54,-
10-AUG-2009,EXCELINFO,Excel Infoways Limited,SUNEET LAL,SELL,131181,111.30,-
10-AUG-2009,FSL,Firstsource Solutions Lim,PRAKASH K SHAH SHARES & SECURITIES PVT. LTD,SELL,2291347,29.40,-
10-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,9420616,22.00,-
10-AUG-2009,SASKEN,Sasken Commu Techno Ltd,ASIT C MEHTA FOREX PRIVATE LTD,SELL,170426,129.27,-
Post Session Commentary - Aug 10 2009
Markets closed the unstable session on a lackluster note on the back of huge selling pressure over the indices, offsetting gains in Asian Stocks. Lower than normal monsoon rains and spread of the deadly swine flu in the country fueled the sentiment. On the other hand, negative European markets along with lower US index futures also weighed on the attitude of the investors. However, stocks witnessed upward movement at the initial stage on better than expected news about U.S. job losses. The BSE Sensex ended below 15,050 level and NSE Nifty closed below 4,450 mark.
Market belled the day on positive note backed by the firm cues from the US and Asian markets. The US stocks markets closed higher on Friday by logging impressive gains for the week due to the better-than-expected jobs report. Moreover, US jobs report revealed that fewest amount of job losses in nearly one year by coming in at 247,000 for July as against the consensus estimate called for 350,000 job losses. Further, Indian benchmark indices turned volatile soon after start and pared all initial gains. However, market managed to regain strength and moved into positive before losing strength yet again. Going ahead, stocks continued to swing between positive and negative terrain without any sign of recovery. During the final trading hours, market slipped sharply to close with losses on weak European markets. Investors’ were also worried on lesser than normal rain that may interrupt a hopeful revival in the domestic economy. From the sectoral front, most of the selling was observed in Auto, FMCG, Capital Goods, Realty, PSU, Power and Bank stocks. The border market indices also followed the same trend as BSE Midcap and Smallcap indices ended with losses of more than 2% each. However, IT and Teck stocks remained in limelight as witnessed most of the buying from these baskets.
Among the Sensex pack 23 stocks ended in red territory and 7 in green. The market breadth indicating the overall health of the market remained negative as 1800 stocks closed in red while 850 stocks closed in green and 76 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 150.47 points or (0.99%) at 15,009.77 and NSE Nifty ended down by 43.75 points or (0.98%) at 4,437.65. BSE Mid Caps and Small Caps closed with losses of 92.77 and 120.73 points at 5,340.48 and 6,073.03 respectively. The BSE Sensex touched intraday high of 15,417.34 and intraday low of 14,902.02.
Losers from the BSE Sensex pack are M&M Ltd (9.12%), ACC Ltd (6.52%), Herohonda Motors (3.80%), HUL (3.48%), Tata Motors (3.27%), Maruti Suzuki (3.09%), Grasim Industries (3.00%), ITC Ltd (2.69%), ICICI Bank (2.54%), Bharti Airtel (2.51%), HDFC (2.09%), L&T Ltd (1.84%), JP Associates (1.83%), SBI (1.72%), DLF Ltd (1.52%), BHEL (1.41%) and RCom (0.96%).
Gainers from the BSE Sensex pack are TCS (6.02%), Wipro Ltd (2.80%), Infosys Tech (2.20%), Tata Power (2.12%), ONGC Ltd (1.90%), Hindalco (0.69%) and Sterlite Industries (0.50%).
On the global markets front the Asian markets that opened before the Indian market, ended mostly higher as better-than-expected news about U.S. job losses and Japan''s business spending raised hopes for recovery of the world''s two largest economies. Nikkei 225, Hang Seng and Seoul Composite ended higher by 554.15, 112.17 and 0.11 points at 20,929.52, 10,524.26 and 1,576.11 respectively. However, Shanghai Composite lost 10.93 points at 3,249.76. Singapore''s Straits Times Index remained closed in observance of National Day and it will re-open on Tuesday.
European markets, which opened after the Indian market, are trading in red. In Frankfurt the DAX index is trading down by 41.89 points at 5,417.07 and in London FTSE 100 is trading lower by 33.26 points at 4,698.30.
The BSE Auto index dropped by (4.52%) or 246.82 points at 5,210.27 on profit booking. Scrips that lost are M&M Ltd (9.12%), Bajaj Auto (9%), Escorts Ltd (5.07%), Bharat Forge (4.60%) and Apollo Tyre (4.11%).
The BSE FMCG index lost (2.96%) or 75.5 points at 2,479.02 on concerns over annual monsoon. Main losers are Colgate Palm (8.11%), United Spr (5.03%), HUL (3.48%), Marico Ltd (2.86%) and Godrej Cons (2.78%).
The BSE Capital Goods index dropped by (2.03%) or 247.11 points at 11,909.91. Losers are Suzlon Energy (6.67%), Praj Industries (6%), Aiaengineer (5.45%), Punj Lloyd (4.81%) and Gammon Indi (4.79%).
The BSE Realty index plunged (1.66%) or 61.14 points at 3,615.81. Losers are Pheonix Mill (8.01%), Sobha Dev (4.61%), Ansal Infra (4.15%), Ackruti (2.96%) and Omaxe Ltd (2.36%).
The BSE Consumer Durables index ended down by (1.49%) or 44.94 points at 2,968.31. As Gitanjali GE (6.09%), Rajesh Export (5.40%) and Videocon Ind (3.25%) ended in red.
The BSE IT index closed higher by (2.64%) or 103.31 points at 4,022.43 as better than expected US jobs data raised hopes for a recovery in the world''s largest economy. Gainers are Patni Computer (7.04%), Mphasis Ltd (6.02%), TCS Ltd (6.02%), Wipro Ltd (2.80%) and Infosys Tech (2.20%).
IDBI Bank dropped by 2.50%. The bank has slashed the interest rates on deposits in the range of 25 basis points to 50 basis points across various maturities effective August 12. Along with this, the bank has also announced reduction of one percentage point in lending rates for automobile loans. The bank has not made any changes in rates for deposits up to six months and all changes are for duration beyond six months.
Reliance Communications Ltd lost 0.96%. The company has posted a net profit of Rs 48026.50 million for the year ended March 31, 2009 as compared to Rs 25864.40 million for the year ended March 31, 2008. Total Income has increased from Rs 134266.50 million for the year ended March 31, 2008 to Rs 136946.70 million for the year ended March 31, 2009.
Hindustan Unilever Ltd slumped 3.48% after four lakh shares changed hands in two block deals on NSE.
Mundra Port and Special Economic Zone Ltd gained 3.36%. The largest private port in India has won the bid for the development of coal handling terminal at port of Mormugao, Goa, on design build, finance, operate and transfer (DBFOT) basis.
Austral Coke and Projects Ltd advanced by 5.01%. The company through its Guinea based sub-subsidiary Astra Energy Ltd SARL, has acquired 16 prospecting licenses of rich iron ore, bauxite and manganese ore blocks measuring 12,63,000 acres in Guinea in West Africa. The contract term is for 30 years with an extendable term of another 30 years.
Nucleus Software Exports Limited went up by 3.64%. The company has won a core banking order for their product FinnOne from Malayan Bank, Philippines for the implementation of Complete Banking Solution to enhance bank''s operations. Complete suite of FinnOne will be implemented at 9 branches of the bank including the head office.
Market corrects for third straight day
The market cooled off after gaining in the early session. The Sensex opened at 15287, up 127 points, tracking strong Asian indices. Nifty registered its intra-day high of 15417 on buying in information technology, media and telecommunication stocks. However, the market gave up its gains due to profit booking in heavyweights, auto, fast moving consumer goods and capital goods stocks. As trading progressed the Sensex lost its strength and slipped into negative territory to touch the day's low of 14902. The Sensex pared some losses towards the close but sustained selling in index pivotal stocks kept the index in negative territory. For the day the Sensex was down 150 points at 15010, while Nifty ended 44 points down at 4438.
The broader market remained weak. Of the 2,726 stocks traded on the BSE, 1,800 stocks declined, 850 stocks advanced and 76 stocks ended unchanged. Barring BSE IT index and BSE Teck the other sectoral indices ended in the negative territory. The BSE Auto index dropped 4.52%, the BSE FMCG index shed 2.96% and BSE CG index was down 2.03%.
Among the major losers, Mahindra & Mahindra dropped 9.12% to Rs758.10, ACC slumped 6.52% to Rs809.95, Hero Honda Motors shed 3.80% to Rs1,425, Hindustan Unilever lost 3.48% at Rs260.45, Tata Motors declined 3.27% to Rs400.95 and Maruti Suzuki India slipped nearly 3.09% to trade Rs1,251.40. However, Tata Consultancy Services notched 6.02% to trade at Rs538.85, Wipro rose 2.80% to Rs512.85, Infosys Technologies added 2.20% to Rs2,086.80, Tata Power advanced 2.12% to Rs1,251.30 and ONGC moved up by 1.90% to Rs1,159.70.
Over 2.11 crore shares of Mahindra Satyam changed hands on the BSE followed by Suzlon Energy (1.83 crore shares), Unitech (1.66 crore shares), Firstsource Solutions (1.50 crore shares) and Ispat Industries (1.40 crore shares).
Auto, cement shares slide as market extends losses for the third day slide
The key benchmark indices extended losses for the third straight day on fears below-normal rains may hamper a nascent economic recovery. Concerns about the spread of the deadly swine flu and weak European stocks also weighed on the sentiment. The BSE 30-share Sensex lost 150.47 points or 0.99%, off close to 410 points from the day's high and up close to 110 points from the day's low. The Sensex fell below the psychological 15,000 mark in intraday trade but settled just above that level.
Auto, cement, capital goods and FMCG stocks fell even as IT stocks rose. Index heavyweight Reliance Industries (RIL) edged lower in volatile trade. The barometer index BSE Sensex has plunged 894.06 points or 5.62% in last three trading sessions. From a 14-month closing high of 15,924.23 on 3 August 2009, the Sensex has lost 914.46 points or 5.74% in last five trading sessions.
As per the provisional data, foreign funds today, 10 August 2009, dumped stocks worth a net Rs 639.92 crore. Domestic funds bought equities worth a net Rs 86.14 crore.
Intraday volatility was high. The market pared gains after a firm start triggered by better-than-expected US and Japanese economic data. It lost further ground later, slipping into the red from green as below normal monsoon rains and spread of the deadly swine flu in the country weighed on the sentiment. The Sensex fell below the psychological 15,000 mark. It soon regained that psychological level as the market cut losses in early afternoon trade. The market moved into the green from red in early afternoon trade. The market moved between positive and negative zone in mid-afternoon trade. The market tumbled to a fresh intraday low in late trade, once again falling below the 15,000 mark.
Investors are worried that scanty rains may hamper a nascent revival in the domestic economy. Media reports today, 10 August 2009, suggested that the monsoon deficit in the current season had widened to 28% on 8 August from 25% on 5 August 2009. On the flip side, rains are likely to improve in soybean-growing central Indian and cane-growing northwest region by Wednesday, 12 August 2009, reports suggest.
The South West monsoon rains were 64% below normal in the seven days to 5 August 2009, dipping for the second straight week at a crucial period for oilseeds and sugarcane, and raising concerns of rising food prices. The total rainfall from 1 June 2009 to 5 August 2009 was a quarter below average, the India Meteorological Department said on 6 August 2009.
The June-September rains are the main source of irrigation for farms and are crucial for Asia's third-largest economy as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
The spread of the swine flu disease also weighed on investor sentiment. A 4-year-old Chennai boy died of swine flu in Chennai today, 10 August 2009, after a Pune doctor died in the morning, becoming the sixth fatality of the deadly swine flu in the country. Prime Minister Manmohan Singh on Sunday asked Union Health Minister Ghulam Nabi Azad to step up the preparedness and ensure closer coordination between the Health Ministry and the State governments to check the spread of the highly contagious disease.
Meanwhile, trade Minister Anand Sharma today said decline in exports is a matter of concern, but the stimulus measures already offered by the government have started working. India's exports fell an annual 27.7% in June 2009 to $12.8 billion, its ninth straight monthly fall, government data showed last week, as recessions at developed nations continue to slash demand for Indian goods.
The government will announce steps to encourage the export sector at the forthcoming trade policy review scheduled later this month, Sharma said. He also said the sharp fall in exports may have been halted in recent months, while the infrastructure sector was showing signs of improvement.
European shares were lower on Monday on profit taking after a four-week rally. Banking and commodity stocks led the decline. Key benchmark indices in France, Germany and UK were down by between 0.63% to 0.89%.
Asian stocks rose on better-than-expected US and Japanese data. Key benchmark indices in Hong Kong, Singapore, Taiwan rose by between 0.01% to 2.72%. But, China's Shanghai Composite fell 0.34%.
Japan's Nikkei rose 1.08%. Japanese machinery orders rose for the first time in four months in June 2009 and the current-account surplus widened, the latest signs that the nation's worst postwar recession is easing. Orders rose 9.7% from May 2009, the Cabinet Office said today in Tokyo, more than the 2.6% expected by economists. The surplus more than doubled in June 2009 from a year earlier to 1.15 trillion yen ($11.8 billion), expanding for the first time since February 2008 as exports improved.
Trading in US index futures indicated Dow could fall 26 points at the opening bell today, 10 August 2009.
US markets surged on Friday, 7 August 2009 on encouraging employment data. For the week, both the Dow and the S&P 500 closed with more than 2% gains. on Friday, the Dow soared 113.81, or 1.2%, to 9,370.07. The broader S&P 500 index rose 13.40, or 1.3%, to 1,010.48, while the Nasdaq composite index gained 27.09, or 1.4%, to 2,000.25.
In economic news, the jobs report came in better than expected. The report showed 2,47,000 jobs were cut from non-farm payrolls last month, which was less than the 320,000 expected. The unemployment rate eased for the first time since April 2009 by coming in at 9.4%, down from 9.5%.
Back home, the initial public offer (IPO) of NHPC, which opened for subscription on Friday 7 August 2009, was subscribed 3.73 times. At the end of second day of IPO, the NHPC IPO received bids for 626.48 crore shares compared to the issue size of 167.7 crore shares. NHPC is planning to raise Rs 6,040 crore at the upper end of the issue price band of Rs 36. The government kickstarts the divestment process by selling shares in NHPC.
Meanwhile, state-owned NMDC, India's biggest mining company, will reportedly tap the capital market in two phases. The government will first divest 8.38% of its equity stake through an initial public offer (IPO) in the current financial year, which will be followed by a follow-on offer (FPO) in 2010-11.
Investors feel economic reforms will boost economic growth and corporate earnings over the medium term. The Q1 June 2009 results of India Inc were encouraging, with lower costs helping bottomline growth. The combined net profit of 3,204 companies rose 17% to Rs 73665 crore on 5% fall in sales to Rs 724129 crore in Q1 June 2009 over Q1 June 2008.
The BSE 30-share Sensex fell 150.47 points or 0.99% at 15,009.77. The Sensex rose 257.10 points at the day's high of 15,417.34 in early trade. At the day's low of 14,902.02, the Sensex fell 258.22 points in late trade,
The S&P CNX Nifty fell 43.75 points or 0.98% to 4,437.65. Nifty August 2009 futures were at 4388.05, at a huge discount of 49.60 points as compared to the spot closing of 4437.65. Turnover in NSE's futures & options (F&O) segment rose to Rs 68,493.48 crore from Rs 65,231.26 crore on Friday 7 August 2009.
Foreign funds are selling equities this month after heavy purchases last month. FII outflow in August 2009 totaled Rs 889.30 crore (till 7 August 2009). FII inflow in calendar year 2009 totaled Rs 35,280.40 crore (till 7 August 2009).
Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex was up 5362.46 points or 55.58% in calendar year 2009 as on 10 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex was up 6,849.30 points or 83.99% as on 10 August 2009.
Coming back to today's trade, the market breadth, indicating the overall health of the market, was weak. On BSE, 846 shares advanced as compared with 1796 that declined. A total of 76 shares remained unchanged. The breadth had turned weak in mid-morning trade compared to a strong breadth in early trade.
Among the 30-member Sensex pack, 23 fell while the rest gained.
BSE clocked a turnover of Rs 5,516 crore, higher than Rs 5442.57 crore on Friday, 7 August 2009.
The BSE Mid-Cap index was down 1.71% and the BSE Small-Cap index was down 1.95%. Both the indices underperformed the Sensex.
The BSE Auto index (down 4.52%), the BSE FMCG index (down 2.96%), the BSE Capital Goods index (down 1.49%), the BSE Realty index (down 1.66%), the BSE Consumer Durables index (down 1.49%), the BSE PSU index (down 1.33%), the BSE Bankex (down 1.3%), underperformed the Sensex.
The BSE IT index (up 2.64%), the BSE Teck index (up 0.97%), the BSE Healthcare index (down 0.04%), the BSE Oil & Gas index (down 0.43%), the BSE Metal index (down 0.63%), the BSE Power index (down 0.93%), outperformed the Sensex.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 0.48% to Rs 1,986.35. The stock hit a high of Rs 2,038 and a low of Rs 1,973.35. Days after Anil Ambani, Chairman of Reliance Natural Resources (RNRL) unleashed a scathing attack against his elder brother and Chairman of petrochemical major Reliance Industries (RIL), on the issue of supply of gas from the Krishna Godavari basin (KG basin) by RIL to RNRL, the Mukesh Ambani group on Friday, 7 August 2009, rejected all the allegations as baseless and malafide.
Clarifying RIL's point, Atul Chandra, RIL's president for petroleum business, started by saying that Anil Ambani had attempted to convert a legal issue pending in the highest court of the country into a public matter for purely self serving interest aimed at personal and private gain, while overwhelmingly rejecting all of Anil's accusations. He said it was a smartly orchestrated campaign unleashed to malign RIL in the public domain even when the issue was subjudice.
Earlier, petroleum minister Murli Deora in Parliament on Thursday, 6 August 2009 said that the price approved by the empowered group of ministers (eGoM) for RIL gas from the KG D6 field was lower than the price it had approved for some of the other operators in the country. Deora said the price of $4.2 was lower than the price of $5.5 charged for gas from the Panna-Mukta-Tapti (PMT) field by a group consisting RIL, ONGC and British Gas. The Anil Ambani group (ADAG) had called the price of $4.2 exorbitant, pointing out that most of the natural gas in the country is being sold at $1.8 to $2.4 per unit.
The Ambani brothers have been at loggerheads since the death of their father in 2002, and a 2005 settlement saw the Reliance group split into two. The Supreme Court on 30 July 2009 said, it will give a date on 1 September 2009 to expedite the decision.
Shares of three public sector oil marketing companies fell on profit taking after recent rally triggered by expectations that a hike in retail fuel prices in early July 2009 may boost Q2 September 2009 results. Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) fell by between 3.11% to 6.22%. On 1 July 2009, the government had hiked petrol price by Rs 4 per litre and diesel by Rs 2 per litre.
The three public sector oil marketing firms reported strong Q1 June 2009 results as they incurred negligible underrecoveries on domestic sale of fuel at controlled prices. The strong performance was despite lack of any oil bonds from the government.
Auto stocks extended steep losses registered in the previous two trading sessions triggered by concerns over scanty rains. Auto firms derive substantial revenue from rural India. Mahindra & Mahindra, Bajaj Auto, Hero Honda Motors, Tata Motors, Maruti Suzuki India, TVS Motor Company fell by between 3.09% to 9.12%.
FMCG stocks fell on concerns over annual monsoon. FMCG firms derive substantial revenue from rural sector. Dabur India, ITC, United Spirits, REI Agro, Nestle India fell by between 0.45% to 5.03%.
India's largest FMCG maker by sales Hindustan Unilever dropped 3.4% after four lakh shares changed hands in two block deals on NSE.
IT stocks rose as better than expected US jobs data underpinned hopes for a recovery in the world's largest economy. India IT companies derive a lion's share of revenues from exports to the US.
India's largest IT exporter by sales TCS rose 6.02%. The company recently bagged an order from multi-brand discount chain The Loot. TCS will manage the back-end and software support system for the retail chain.
India's second largest IT exporter by sales Infosys rose 2.2%. The company, last week, signed an agreement with BanColombia SA for its Finacle software to be used by the Colombian bank and its overseas units.
India's third largest IT exporter by sales Wipro rose 2.8% as its ADR rose 1.25% on Friday. The company announced on Wednesday, 5 July 2009, that it has entered a five-year contract with US apparel retailer Charming Shoppes Inc. to provide information technology services.
Capital goods and construction shares fell on profit booking after recent strong gains triggered by of the government's thrust on the infrastructure sector in the Union Budget 2009-2010. Larsen & Toubro, Bharat Heavy Electricals, Crompton Greaves, Praj Indutries, ABB, BEML, Thermax, Siemens, fell by between 1.24% to 6%.
Among construction shares, Gayatri Projects, Nagarjuna Construction Company, Era Infra Engineering, Hindustan Construction Company, fell by between 0.69% to 6.66%.
Cement stocks fell on profit taking after a recent surge triggered by healthy July 2009 monthly sales. UltraTech Cement, Grasim Industries, Ambuja Cements, ACC fell by between 3% to 7.02%.
India's largest mobile services provider by sales Bharti Airtel fell 2.81% on concerns of a higher cash outgo in its proposed merger deal with South Africa's MTN to create a $23-billion entity.
India's second largest mobile services provider by sales Reliance Communications fell 0.96%.
Power stocks fell even as the NHPC IPO received robust investor response. Reliance Infrastructure, NTPC, PowerGrid Corporation of India, CESC, GVK Power & Infrastructure fell by between 0.35% to 3.06%.
Metal shares fell in volatile trade even as LMEX, a gauge of six metals traded on the London Metal Exchange, rose 1.7% on Friday, 7 August 2009. Tata Steel, Steel Authority of India, Jindal Steel, National Aluminum Company, JSW Steel, Hindustan Zinc, fell by between 0.04% to 4.05%.
Bank stocks fell on profit taking after recent strong gains. India's biggest bank in terms of branch network State Bank of India (SBI) fell 1.72%.
India's largest private sector bank by net profit ICICI Bank fell 2.54% as its ADR fell 2.41% on Friday, 7 August 2009. India's second largest private sector bank by net profit HDFC Bank fell 0.92% even as its ADR rose nearly 1% on Friday.
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, Phoenix Mills, Omaxe, DLF, Indiabulls Real Estate, Anant Raj Industries, Ackruti City, fell by between 1.33% to 8.01%.
Cals Refineries clocked highest volume of 2.19 crore shares on BSE. Mahindra Satyam (2.11 crore shares). Suzlon Energy (1.83 crore shares), Unitech (1.66 crore shares) and Firstsiurce Solutions (1.5 crore shares) were the other volume toppers in that order.
Mahindra Satyam clocked highest turnover of Rs 215.86 crore on BSE. Educomp Solutions (Rs 204.30 crore), Reliance Industries (Rs 194.19 crore), ICICI Bank (Rs 187.17 crore) and Tata Steel (Rs 169.62 crore) were the other turnover toppers in that order.
Pre Session Commentary - Aug 10 2009
Today domestic markets are likely to open positive as majority of Asian markets are trading in green on the back of positive closing of US markets last Friday. The US job losses for the month of July clicked at 247,000 as against the consensus estimates of 350,000. And also the unemployment rate has eased at 9.4% from 9.5%. Majority of markets across Asian have cheered the positive macro economic news coming from US. In the domestic arena one could witness a positive opening followed by northward trend.
On Friday, Market extended yesterday’s losses and opened sharply lower backed by negative cues from the global markets. The US stocks markets ended on downbeat note on Thursday for the second straight session after a solid start. The major indices opened higher following smaller-than-expected weekly initial jobless claims, even though continuing claims were more-than-expected. Further, benchmark indices were trading with volatility and managed to lessen some of the losses. However, market was unable to hold the same momentum and slipped again as profit booking continued across the sectorial indices. Further, the weak cues across the Asian markets also fueled the sentiments today. Market continued to extend losses and slipped sharply during final trading to end the day with huge losses. From the sectoral front, all indices closed in red. Among those, Consumer Durables, Auto, Realty, Bank, Power, Capital Goods, FMCG and Metal stocks were major draggers, which pulled down the market. Continuous selling also pulled down the border market indices as BSE Midcap and Smallcap indices ended lower.
The BSE Sensex closed lower by 353.79 points or (2.28%) at 15,160.24 and NSE Nifty ended down by 104.10 points or (2.27%) at 4,481.40. BSE Mid Caps and Small Caps closed with losses of 126.01 and 121.03 points at 5,433.25 and 6,193.76 respectively. The BSE Sensex touched intraday high of 15,501.94 and intraday low of 15,104.
On Friday, US stock markets closed higher. Markets opened with phenomenal gains backed by broad based buying. There was strong positive sentiment prevailing across the broader level on the back of better than expected Nonfarm payrolls data. Job losses for the month of July recorded at 247,000 much lower than the consensus estimate of 350,000. Further, the unemployment rate eased back for the first time since April by coming in at 9.4%, down from 9.5% and also lower than the expected 9.6%. Nine of the major 10 sectors finished higher. Energy stocks fell by 0.1% due to strengthening dollar that further pulled the oil prices by 1.5%. AIG (AIG 27.14, +4.61) was top gainer in the financial sector after posting its first profit since 2007. US light crude oil futures for September delivery closed at $70.88 per barrel lower by 1.5% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 113.81 points at 9,370.07, NASDAQ index inclined by 27.09 points to 2,000.25 and the S&P 500 (SPX) closed higher by 13.40 points at 1,010.48.
Indian ADRs ended mixed on Friday. In the IT space, Satyam Computers was down 1.25%, Infosys was up 0.14%, Patni Computers was up 2.16% and Wipro was up 1.25%. In the banking space, HDFC Bank was up 0.95% and ICICI Bank was down 5.41%. In the telecom space, MTNL was down 0.96% and Tata Communication was up1.73%. In other sectors, Sterlite Industries was down 0.07%, Dr Reddy''s Labs was up 2.38% and Tata Motors was up 1.06%.
The FIIs on Friday stood as net sellers in equity and debt. Gross equity purchased stood at Rs 2,580.90 Crore, while the gross equity sold stood at Rs 2,827.40 Crore and gross debt purchased stood at Rs 228.50 Crore, while gross debt sold stood at Rs 295.40 Crore. The net investment of equity reported was Rs (246.50) Crore and net debt was Rs (66.90) Crore.
On Friday, the partially convertible rupee ended at 47.85/86, 0.35% weaker than its previous close at 47.68/69. The rupee lost grounds due to downtrend in local stock markets which fell sharply for the second consecutive day.
On BSE, total number of shares traded were 40.78 Crore and total turnover stood at Rs 5,442.57 Crore. On NSE, total number of shares traded were 91.45 Crore and total turnover was Rs 17,655.37 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 60167483 shares, followed by Suzlon Energy with 46799627, Tata Steel with 17035801, DLF with 13363854 and Hindalco with 12576733 shares.
On NSE Future and Options, total number of contracts traded in index futures was 822708 with a total turnover of Rs 17,580.66 Crore. Along with this total number of contracts traded in stock futures were 549564 with a total turnover of Rs 16,973.98 crore. Total numbers of contracts for index options were 1239865 with a total turnover of Rs 28,846.15 Crore and total numbers of contracts for stock options were 57212 and notional turnover was Rs 1,830.48 Crore.
Today, Nifty would have a support at 4,515 and resistance at 4,572 and BSE Sensex has support at 15,215 and resistance at 15,396.
Market may snap last two days' losses on positive global cues
The market may recover from last two days' near 5% slide on firm global stocks. However, weak monsoon and spread of the deadly swine flu in the country may cap the upside. Further, there are concerns that strong response to the initial public offer (IPO) of NHPC will suck out liquidity from the secondary market.
A 4-year-old Chennai boy died of swine flu in Chennai after a Pune doctor died of the disease today, 10 August 2009 morning, becoming the fifth fatality of the deadly swine flu in the country. Shares of companies making Tamiflu, the only known anti-viral drug effective to treat to swine flu, may edge higher.
Prime Minister Manmohan Singh on Sunday asked Union Health Minister Ghulam Nabi Azad to step up the preparedness and ensure closer coordination between the Health Ministry and the State governments to check the spread of the highly contagious disease.
Asian stocks rose today buoyed by better than expected US and Japanese data. The key benchmark indices in China, Hong Kong, Singapore and Taiwan rose by between 0.23% to 2.2%.
Japan's Nikkei rose 1.42%. Japanese machinery orders rose for the first time in four months in June 2009 and the current-account surplus widened, the latest signs that the nation's worst postwar recession is easing. Orders rose 9.7% from May 2009, the Cabinet Office said today in Tokyo, more than the 2.6% expected by economists. The surplus more than doubled in June 2009 from a year earlier to 1.15 trillion yen ($11.8 billion), expanding for the first time since February 2008 as exports improved.
US markets surged on Friday, 7 August 2009 on encouraging employment data. For the week, both the Dow and the S&P 500 closed with more than 2% gains. on Friday, the Dow soared 113.81, or 1.2%, to 9,370.07. The broader S&P 500 index rose 13.40, or 1.3 %, to 1,010.48, while the Nasdaq composite index gained 27.09, or 1.4%, to 2,000.25.
In economic news, the jobs report came in better than expected. The report showed 247,000 jobs were cut from non-farm payrolls last month, which was less than the 320,000 expected. The unemployment rate eased for the first time since April 2009 by coming in at 9.4%, down from 9.5%.
Back home, the key benchmark indices fell for the second day in a row on Friday, 7 August 2009 as weak global stocks and below normal rains weighed on investor sentiment. The BSE 30-share Sensex was down 353.79 points or 2.28% to 15,160.24 on that day. Foreign funds on Friday, 7 August 2009, dumped stocks worth a net Rs 1,050.81 crore, provisional data released by the stock exchanges after trading hours showed.
The IPO of NHPC, which opened for subscription on Friday 7 August 2009, was subscribed 3.54 times by 17:00 IST on Friday, data on NSE website showed. The IPO received bids for 594.09 crore shares compared to the issue size of 167.7 crore shares. NHPC is planning to raise Rs 6,040 crore at the upper end of the issue price band of Rs 36. The government kickstarts the divestment process by selling shares in NHPC.
Meanwhile, state-owned NMDC, India's biggest mining company, will reportedly tap the capital market
in two phases. The government will first divest 8.38% of its equity stake through an initial public offer (IPO) in the current financial year, which will be followed by a follow-on offer (FPO) in 2010-11.
Investors continue to bet that the government will undertake economic reforms which may boost economic growth and corporate earnings. The Q1 June 2009 results of India Inc were encouraging, with lower costs helping bottomline growth. The combined net profit of 3,190 companies rose 17% to Rs 73665 crore on 5% fall in sales to Rs 724055 crore in Q1 June 2009 over Q1 June 2008.
But, scanty rains remains a cause of concerns for investors. The South West monsoon rains were 64% below normal in the past seven days to 5 August 2009, dipping for the second straight week at a crucial period for oilseeds and sugarcane, and raising concerns of rising food prices. The total rainfall since the start of season on 1 June 2009 was a quarter below average, the India Meteorological Department said on 6 August 2009. The June-September rains are the main source of irrigation for farms and are crucial for Asia's third-largest economy as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
Daily News Roundup - Aug 10 2009
NTPC plans to continue to fight legally for the fuel's contracted price and seek Power Ministry's help. (BS)
Reliance, Lanco, Essar, L&T, GVK are in race for taking up the Rs121.32bn Hyderabad Metro Rail project. (BS)
Tata Motors’ may consider buying 20% stake from Thonburi in Thai truck JV. (BS)
NTPC plans to invest more than Rs90bn in its two new expansion projects located at Jhanor and Kawas in Gujarat. (ET)
Tata Steel plans to invest Rs400bn over the next five years to ramp up its production capacity to 16mn tonnes. (ET)
Bharti Airtel has sought loans worth US$1bn from SBI. (BL)
CAG has sought Petroleum Ministry’s help to access Reliance Industries’ account books.(TOI)
Finance Ministry believed to be favourably inclined towards Petroleum Ministry’s proposal that ONGC be reimbursed the royalty that it would pay on behalf of Cairn India in the Rajasthan oil field.(BL)
Indian Hotels’ arm plans to invest about Rs800mn for setting up seven to eight hotels in the current fiscal. (BS)
Bharti Airtel may increase its offer by 5-10% for a stake in MTN. (ET)
NTPC is likely to set up power plants in Nigeria and Sri Lanka. (BS)
Jaiprakash Hydro-Power plans to add 2,000 mw power generation capacity, comprising hydro and thermal, in the current Five-Year Plan period ending 2012. (ET)
Air India's demand for equity infusion receives support from the Prime Minister. (ET)
Petroleum ministry approves a three-month credit period to Air India for payment of its aviation turbine fuel dues. (BS)
India Cements receives approval for raising around US$100mn. (BS)
Srei Infrastructure unit plans to roll out IPTV services at its 20 common service centers in the rural areas of Orissa by the end of this year. (BS)
Peninsula Land plans to raise a QIP of Rs5bn for acquiring land in Mumbai. (ET)
Mahindra Satyam receives 30 contracts.(BL)
Reliance Power fully acquires Jharkhand Integrated Power, an SPV floated to implement the 4,000MW Tilaiya ultra mega power plant project. (ET)
BHEL plans to airlift critical power equipment from different countries for two NTPC projects critical for meeting the electricity demand during the Commonwealth Games 2010. (ET)
Essar group amongst bidders for Shell’s UK refinery.(TOI)
Moser Baer gets Supreme Court notice on Rs29.78bn tax evasion. (BS)
Berger Paints decides to set up Rs1bn greenfield water-based plant, along with a supporting emulsion facility in southern India. (ET)
Major retailers Future Group, Aditya Birla Retail, Spencer’s and Reliance Retail forms a rainbow coalition to align their sourcing operations and share private labels, logistics, warehouses and hiring details on a transactional payment basis. (ET)
SEBI may give parallel dates to ABG Shipyard and Bharati Shipyard for their open offers to buy additional stake in Great Offshore. (BS)
DoT has given a clean chit to Datacom Solutions on the grounds that there is no violation of the licence norms.(BL)
Tata Communications earmarks Rs100bn capital expenditure over 3 years.(FE)
MTNL invites bids from global players to set up and run its WiMax operations in Delhi and Mumbai on a franchisee basis for a six-year period. (ET)
RPG eyes Rs17bn loan for Haldia thermal project. (ET)
BSNL earmarks a capital expenditure of Rs12.5bn to make its network ready for
India's foreign exchange reserves rose to US$272bn as on July 31, from US$268bn a week earlier.(BL)
Government relaunches its largest ever auction of oil and gas exploration areas, aiming to attract US$3-4bn investment. (BS)
Cement dispatches in July grew 10.6%, as compared to 8.1% a year ago. (BS)
CERC notifies medium-term open access norms.(FE)
Agricultural growth in the current fiscal could slow down to 2.5% from 3%, according to the latest Survey of Professional Forecasters by the RBI.(BL)
CERC issues new rules on transmission.(BL)
Finance Minister says he is unsure of the economy’s direction as other problems may arise from the adverse effects of scanty rainfall.(BL)
The government is likely to come up with an index to track price variation in the services sectors like telecom and railways in the next six months. (BS
Keep your portfolio healthy!
…So if you're not healthy to begin with, getting the flu can easily turn into a very serious medical situation.
We can barely handle a regular flu outbreak. As if the deficit monsoon was not enough, we now have to grapple with the growing concerns over swine flu. Though the situation has not yet reached alarm levels, it might have some effect on sentiment. More worrisome is the virtual disappearance of rains. Food prices are already pretty high and with the festival season approaching, it is likely to spike up further. A drought is the last thing that India needs at this crucial juncture.
Thankfully, the bulls got a dose of good news over the weekend in terms of stronger than expected US jobs data. This has come as a shot in the arm for the market, which is likely to overlook worries over swine flu and shortfall in monsoon. Among the key events to watch out this week would be the IIP numbers and comments from the Fed. We see the Nifty moving in a broad range of 4300-4800 in the near term. Ensure a healthy balance of your portfolio to stay immune from the vagaries of the market.
FIIs were net sellers of Rs10.5bn in the cash segment on Friday on a provisional basis while the local funds pumped in Rs4.14bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs7.92bn. On Thursday, the foreign funds were net sellers at Rs2.46bn in the cash segment. Their net purchases of Indian stocks have crossed $7.4bn year-to-date. Mutual Funds were net buyers of Rs212mn on Thursday.
Asian stocks rose, led by automakers and consumer companies, after the US jobless rate dropped and Japanese machinery orders increased, boosting confidence that the world’s two largest economies are emerging from recessions.
The MSCI Asia Pacific Index climbed 1.4% to 112.28 as of 11:35 a.m. in Tokyo, following a 1% drop last week. The regional benchmark has climbed 59% from a more than five-year low on March 9.
Japan’s Nikkei 225 Stock Average rose 1.3% to 10,545.90. The Hong Kong’s Hang Seng Index climbed 2% to 20,789.
Japanese machinery orders rose for the first time in four months and the current-account surplus widened. Orders rose 9.7% from May, the Cabinet Office said today in Tokyo, more than the 2.6% expected by economists. The current-account surplus more than doubled in June from a year earlier to 1.15 trillion yen (US$11.8bn), expanding for the first time since February 2008 as exports improved.
The US economy may be on the cusp of a recovery and the impact of the nation’s stimulus plan should increase this quarter, said Laura Tyson, an adviser to President Barack Obama. “We may have hit stability, we may be in the beginning of an upturn based on the latest economic data," Tyson, a member of the White House’s Economic Recovery Advisory Board, said yesterday during an interview in Kuala Lumpur.
Nobel Prize- winning economist Paul Krugman said that the deepest slump since the Great Depression may be ending. "It’s quite possible, though not certain, that retrospectively, we’ll say that the recession ended in July or August, maybe September,” Krugman said in a separate interview in the Malaysian capital. “My guess is that we’ve bottomed out now, that August was probably the trough month.”
US stocks rose on Friday, with the Dow and S&P 500 closing at the highest point in nine months, after the July jobs report showed the smallest number of job cuts in nearly a year, adding to recovery hopes.
The Dow Jones Industrial Average gained 114 points, or 1.2%, to 9370.07. The S&P 500 index rose 13 points, or 1.3%, to 1010.48. The Nasdaq Composite index added 27 points, or 1.4%, to 2000.25. All three indexes finished higher for the week.
US employers cut 247,000 jobs from their payrolls in July after slashing a revised 443,000 jobs in June. Economists had forecast job cuts of 325,000. It was the lowest level of losses since last August.
It was the best reading on non-farm payrolls since before Lehman Brothers' collapse last September.
The unemployment rate, generated by a separate survey, fell to 9.4% in July from 9.5% in June, versus forecasts for a rise to 9.6%.
The stock advance was broad based, with 24 of 30 Dow components rising.
The Dow, Nasdaq and S&P 500 all hit fresh 2009 highs earlier last week following three weeks of gains. Since bottoming March 9 at a 12-year low, the S&P 500 has risen 49.4% as of Friday's close.
AIG reported its first quarterly profit in nearly two years on Friday, but the troubled insurer continues to struggle in the aftermath of its near-collapse last fall. AIG still owes taxpayers $87.6 billion. The stock nearly doubled in the run-up to the profit report. AIG gained another 20.5% on Friday.
President Obama on Friday signed into law an extension of the auto sales stimulus program that will keep it running through Labor Day. On Thursday, the Senate approved $2 billion in extra funding for the popular program, which gives consumers up to $4,500 if they turn in gas guzzlers and buy more fuel-efficient models.
US light crude oil for September delivery fell $1.01 to settle at $70.93 a barrel on the New York Mercantile Exchange. Oil prices have been gaining in recent weeks on bets the global economy is close to turning around.
COMEX gold for December delivery fell $3.40 to settle at $959.50 an ounce. Treasury prices tumbled, raising the yield on the benchmark 10-year note to 3.85% from 3.74% late on Thursday. In currency trading, the dollar gained versus the euro and the Japanese yen.
Europe stocks advanced on Friday. The pan-European Dow Jones Stoxx 600 index reversed earlier losses to gain 1.2% to 230.66 after the US Labor Department report. The gains put the index 48% above March lows of 155.38.
Germany's DAX index rose 1.7% to 5,458.96, the UK's FTSE 100 index added 0.9% to 4,731.56 and the French CAC 40 index gained 1.3% to 3,521.14.
Nifty struck a new 2009 high this week. But the bull’s victory was short-lived. Concerns on the monsoon deficit and its wider fallout on the economy, especially on food prices and apprehension over the drought spreading across the country coincided with profit booking across the board. Finally, the NSE Nifty and BSE Sensex closed the week lower by 3.3%.
On Friday, the BSE Sensex slipped 354 points or 2.2% at 15,160 after touching a high of 15,502 and a low of 15,104. The index opened at 15,441 against the previous close of 15,514. The NSE Nifty ended lower by 104 points to shut shop at 4,481.
In Asia, the Nikkei in Japan ended higher by 0.3% at 10,412 while Australia's S&P/ASX ended lower by 0.6% at 4,299. The Hang Seng index in Hong Kong ended lower by 2.5% at 20,375. Shanghai index in China slipped by 2.8% at 3,260.
In Europe, stocks were trading lower. The FTSE in the UK was down 1.1%. The DAX was down 0.7% and the CAC 40 index in France was down 1%.
Coming back to India, among the BSE sectoral indices, the Consumer Durables index was the top loser, losing 4%, followed by the Auto index that was down 3.8%. The BSE Realty index down 3.2% and the BSE Bankex index was down 3%.
The BSE Mid-Cap index ended lower by 2.3% and the BSE Small-Cap index ended lower by 2%.
Within the Sensex, the major losers were RCom, JP Associates, M&M, Maruti and Tata Power. Among the major gainers were NTPC, Tata Steel and Wipro.
Outside the frontline indices, the big losers in the broader market were Tech M, United Spirits, IRB Infra, IDBI Bank and Opto Circuit. On the other hand, gainers included Lupin, Shriram transport, Mphasis and Biocon.
For the week, The top gainers: The top gainers in Sensex were Reliance Industries (up 2.2%), Wipro (up 2%) and Hindalco (up 1%).
The Top Losers: The top losers in the Sensex were Maruti Suzuki (down 8.6%), ITC (down 7.9%), Hero Honda (down 7.9%), Hindustan Unilever (down 7.5%), and DLF (down 7.3%).
The BSE IT Index (down 1.1%): The top losers in the IT sector were Oracle Financial (down 3.7%), TCS (down 3.2%), Patni (down 1.3%) and Infosys (down 1.2%).
Mahindra Satyam ended 2% lower in the week. Mahindra Satyam has outstanding income tax dues of Rs5.3bn, S.S. Palanimanickam, junior finance minister said.
The top gainer was Financial Tech. The stock surged over 9% during the week. Reports stated that the company plans to divest 52% in the MCX-SX bourse by September-end.
Wipro gained 2% during the week. The company announced that it has entered into a 5-year strategic agreement with US-based multi-brand specialty retailer, Charming Shoppers, stated reports.
Among the major gainers were Sasken Communication (up 9%), Wipro (up 2%) and HCL (up 1.4%).
The BSE Consumer Index: The top losers in the consumer durables space were Blue Star (down 8.4%), Mirc Electronics (down 4.1%), Samtel Color (down 2%) and Whirlpool (down 1.5%).
The top gainer was Su-Raj Diamonds (up 3.4%).
The BSE Healthcare Index (down 0.9%): The top losers in the Pharma space were Divi’s Labs (down 11.4%), Ranbaxy Labs (down 6.8%), Strides Arcolab (down 6.5%), Emami (down 5.9%) and Suven Life (down 4.9%).
The top gainers were Astrazeneca Pharma (up 21.9%), Dishman Pharma (up 11.3%), Marksans Pharma (up 6%) and Panacea Biotec (up 4.9%).
Emergency Warning Signs - H1N1 - Swine Flu
If you become ill and experience any of the following warning signs, seek emergency medical care.
In children, emergency warning signs that need urgent medical attention include:
* Fast breathing or trouble breathing
* Bluish or gray skin color
* Not drinking enough fluids
* Severe or persistent vomiting
* Not waking up or not interacting
* Being so irritable that the child does not want to be held
* Flu-like symptoms improve but then return with fever and worse cough
In adults, emergency warning signs that need urgent medical attention include:
* Difficulty breathing or shortness of breath
* Pain or pressure in the chest or abdomen
* Sudden dizziness
* Confusion
* Severe or persistent vomiting
* Flu-like symptoms improve but then return with fever and worse cough
Protect Yourself, Your Family, and Community
* Stay informed. Health officials will provide additional information as it becomes available.
* Cover your nose and mouth with a tissue when you cough or sneeze. Throw the tissue in the trash after you use it.
* Wash your hands often with soap and water, especially after you cough or sneeze. Alcohol-based hand cleaners are also effective.
* Avoid touching your eyes, nose and mouth. Germs spread this way.
* Try to avoid close contact with sick people.
* If you are sick with a flu-like illness, stay home for at least 24 hours after your fever is gone except to get medical care or for other necessities. (Your fever should be gone without the use of fever-reducing medicine.) Keep away from others as much as possible. This is to keep from making others sick.
* If you are sick and sharing a common space with other household members in your home, wear a facemask, if available and tolerable, to help prevent spreading the virus to others. For more information, see the Interim Recommendations for Facemask and Respirator Use.
* Learn more about how to take care of someone who is ill in "Taking Care of a Sick Person in Your Home"
* Follow public health advice regarding school closures, avoiding crowds, and other social distancing measures.
* If you don’t have one yet, consider developing a family emergency plan as a precaution. This should include storing a supply of extra food, medicines, and other essential supplies.
Market may open firm
The market sentiment is likely to remain bullish following firm Asian markets in current trades and overnight gains in US markets. The renewed buying interest in heavyweights may keep the bias positive for the day. Among the key domestic indices, the Nifty could test higher levels in the 4530-4570 range and has a support at 4420. The Sensex has a likely support at 14888 and may face resistance at 15450.
US indices finished higher on Friday, the July jobs report showed the labor market is starting to show signs of bottoming. With the Dow Jones closing 1.23% higher at 9370 up 114 points, while the Nasdaq changed 27 points up to close at 2000.
The upsurge in both the domestic and US markets spurred the Indian ADRs trading on the US bourses. Tata Motors led the pack with gains of 2.38% followed by Patni Computers gaining 2.16% while Infosys, Wipro, Dr Reddy, Tata Motors, HDFC Bank, VSNL and MTNL surged around 1% each. However, Satyam, ICICI Bank and Rediff slipped around 1-4% each.
Crude oil prices in the international market moved down, with the Nymex light crude oil for September 09 delivery declining by $1.01 to close at $70.93 per barrel. In the commodity space, the Comex gold for December series lost by $3.40 to settle at $959.50 a troy ounce.
Daily trend of FII/MF investment in equities
On August 06 2009, FIIs were net sellers of stocks to the tune of Rs247 crore (purchases worth Rs2580.90 crore and sales of Rs2827 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs21 crore (purchases worth Rs1061 crore and sales of Rs1040 crore).
Encouraging job report pushes US stocks higher
Unemployment rises les thane expected for last month
US stocks ended with good gains for the week that ended on Friday, 07 August, 2009. The gains were led by healthy economic reports, mainly in the housing and employment sectors. There were also a large number of earnings reports, and most of them beat expectations.
The Dow Jones Industrial Average gained 198.46 points (2.2%) for the week to end at 9,370.07. Tech - heavy Nasdaq gained 21.75 (1.1%) to end at 2,000.25. S&P 500 gained 23 (2.3%) to end at 1010.48. With this week's gains, the Dow, Nasdaq and S&P 500 have surely consolidated their positions to their best levels of the year.
Seven of the ten sectors gained during the week led by the financial, industrial and consumer discretionary sectors.
Among manor names that reported earnings during the week, Cisco reported a 18% year-over-year drop in revenue in fiscal Q4, matching expectations, with earnings slightly beating estimates due to the company's cost cutting measures. Cost controls helped Procter & Gamble (PG) top quarterly EPS estimates. But its revenue of $18.66 billion disappointed investors as it was well short of the $19.32 bln consensus.
Among economic data for the week, the positive tone was set early in the week as ISM Manufacturing Index made its seventh straight increase, coming in at 48.9 for July. While the sub-50 reading indicates contraction in the manufacturing sector, the number was still better than the 46.5 expected. Separately, construction spending data for June made a surprise 0.3% increase. It was expected to fall 0.5%.
In the housing data, the National Association of Realtors reported that Pending Home Sales rose 3.6% in June, better than the expected increase of 0.7%. Low prices, low mortgage rates, and the first-time buyer tax credit continued to be attractive inducements for prospective buyers.
In the US market on Friday, 07 August, 2009, The Dow Jones Industrial Average ended higher by 113.8 points at 9,370.07. The Nasdaq Composite Index, ended higher by 27.09 points at 2,000.25. S&P 500 ended higher by 13.4 points at 1,010.48.
The Labor Department reported on Friday, 07 August, 2009 that the unemployment rate, in July, 2009 unexpectedly fell to 9.4% as nearly a half a million people dropped out of the labor market. U.S. nonfarm payrolls declined by 247,000 to 131.5 million in July, the 19th consecutive month of job losses. It was the fewest lost payroll jobs since last August, 2008.
But the number of people who've been out of work longer than six months soared by a record 584,000 to 5 million, accounting for more than a third of all unemployment for the first time on record.
Among earning reports, AIG was a primary leader in the financial sector after posting its first profit since 2007. What's more, the company's earnings exceeded expectations. On the other hand, Ambac Financial
plummeted after reporting a considerable loss for the second quarter.
In the currency market on Friday, the dollar index, a six-currency gauge of the greenback's value, rose by almost 1.2%.
Crude prices ended lower on Friday, 07 August, 2009. Prices fell as the dollar strengthened following an upbeat job report from the Labor Department in US. Inspite of the drop, crude managed weekly gains. On Friday, crude-oil futures for light sweet crude for September delivery closed at $70.93/barrel (lower by $1.01 or 1.4%). During intra day trading, it rose to a high of $72. For the week, crude ended higher by 2.1%.
For the year 2009, Dow is up by 6.8%. The Nasdaq and S&P 500 are up by 26.8% and 11.9% respectively.
Precious metals manage mixed end
Gold turns pale but silver shines though both manage weekly gains
Yellow metal prices fell on Friday, 07 August, 2009. Prices fell as the dollar strengthened following an upbeat job report from the Labor Department in US. But silver managed to add some shine to itself by going up.
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 $957.3, lower by $3.4 (0.4%) an ounce on the New York Mercantile Exchange. For the week, gold ended higher by almost 0.4%. 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 (10.3%) since then.
On Friday, Comex silver futures for September delivery rose 2.3 cents (0.2%) at $14.668 an ounce. For the week, silver ended higher by 5.2%.
Silver ended 2.7% higher for July, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 31.7% 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, rose by almost 0.7%.
The Labor Department reported on Friday, 07 August, 2009 that the unemployment rate, in July, 2009 unexpectedly fell to 9.4% as nearly a half a million people dropped out of the labor market. U.S. nonfarm payrolls declined by 247,000 to 131.5 million in July, the 19th consecutive month of job losses. It was the fewest lost payroll jobs since last August, 2008.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for October delivery closed higher by Rs 13 (0.08%) at Rs 14,868 per 10 grams. Prices rose to a high of Rs 14,875 per 10 grams and fell to a low of Rs 14,853 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 18 (0.07%) lower at Rs 23,386/Kg. Prices opened at Rs 23,400/kg and fell to a low of Rs 23,359/Kg during the day's trading.
Crude slips down
Friday's loss curtails crude's weekly gains
Crude prices ended lower on Friday, 07 August, 2009. Prices fell as the dollar strengthened following an upbeat job report from the Labor Department in US. Inspite of the drop, crude managed weekly gains.
On Friday, crude-oil futures for light sweet crude for September delivery closed at $70.93/barrel (lower by $1.01 or 1.4%). During intra day trading, it rose to a high of $72. 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 43% since then. Year to date, in 2009, crude prices are higher by 47.5%.
In the currency market on Friday, the dollar index, a six-currency gauge of the greenback's value, rose by almost 0.7%.
The Labor Department reported on Friday, 07 August, 2009 that the unemployment rate, in July, 2009 unexpectedly fell to 9.4% as nearly a half a million people dropped out of the labor market. Market was expecting a figure of 9.7%. U.S. nonfarm payrolls declined by 247,000 to 131.5 million in July, the 19th consecutive month of job losses. It was the fewest lost payroll jobs since last August, 2008.
Earlier during the week, EIA reported that crude supplies increased 1.7 million barrels to 349.5 million barrels in the week ended 31 July, 2009. Market was expecting a rise of 1.5 million barrels. The Energy Department also said that gasoline stocks fell by 200,000 barrels and distillate inventories dropped by 1.1 million barrels last week.
Also at the Nymex on Friday, September reformulated gasoline fell 5.26 cents, or 2.6%, to $2.0081 a gallon, and September heating oil dropped 2.45 cents, or 1.3%, to $1.9122 a gallon.
September natural gas futures rose 6.9 cents, or 1.8%, to $3.674 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for August delivery closed lower by 35 (1.02%) at Rs 3,392/barrel. Natural gas for August delivery closed unchanged at Rs 177.7/mmbtu.
Dhampur Sugar Mills
We recommend a buy in Dhampur Sugar Mills from a short-term perspective. It is evident from the charts of the stock that it has been trending upwards since November 2008 low of Rs 19.50. Since then, it has been forming higher peaks and higher troughs. In mid-July, the stock took support around Rs 50 and bounced resuming its long-term uptrend. The stock surpassed a medium-term resistance around Rs 72last week and is currently trading well above 21- and 50-day moving averages. The intermediate-term uptrend from March low is intact. We notice that there is an increase in weekly volume over the past four weeks. Both daily and weekly relative strength index (RSI) are featuring in the bullish zone. The daily as well as weekly moving average convergence and divergence indicators are hovering in the positive territory. Our short-term outlook is bullish on the stock. We anticipate it to move up until it hits our price target of Rs 85. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 73.
via BL
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