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Monday, August 17, 2009
Rupee falls
At 48.99/49.00 per dollar
Rupee dropped more than 1.5 percent on Monday, falling to 49 per dollar for the first time in a month after a sharp fall in local shares and as hefty gains in the dollar versus higher-yielding currencies weighed.
Rupee was at 48.99/49.00 per dollar, its lowest since July 13 and 1.55 percent below its Friday's close of 48.24/25
BSE Bulk Deals to Watch - Aug 17 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
17/8/2009 532875 ALLIED DIGIT OPG SECURITIES P LTD B 159177 471.70
17/8/2009 532875 ALLIED DIGIT OPG SECURITIES P LTD S 159177 472.16
17/8/2009 512149 AVANCE TECHN SHRIPAL GOPAL RANGNATH BAJAJ B 250000 2.34
17/8/2009 512149 AVANCE TECHN CHANDRAKANT B SHAH S 805100 2.34
17/8/2009 512149 AVANCE TECHN VIPUL B GONDALIYA S 400000 2.34
17/8/2009 512149 AVANCE TECHN JASMIN S BAJORIYA S 390000 2.34
17/8/2009 519105 AVT NATU PRO THE MIDLAND RUBBER AND PRODUCE COMPANY LIMITED B 280000 79.99
17/8/2009 519105 AVT NATU PRO SHANTHI THOMAS S 276012 80.00
17/8/2009 526839 CCAP LTD JMP SECURITIES PVT LTD B 34499 58.55
17/8/2009 526839 CCAP LTD JMP SECURITIES PVT LTD S 54499 58.46
17/8/2009 526839 CCAP LTD KALPANA MADHANI SECURITIES PVT. LTD. S 20000 58.65
17/8/2009 532809 FSL ASSET ALLIANCE SECURITIES PVT. LTD B 2376210 32.74
17/8/2009 532809 FSL ASSET ALLIANCE SECURITIES PVT. LTD S 2564369 32.84
17/8/2009 513337 GUJ.TOOLROOM DHIRAJLAL V SANGHVI HUF B 46500 9.69
17/8/2009 513337 GUJ.TOOLROOM EMERGING EQUITIES PVT. LTD. B 24700 10.13
17/8/2009 513337 GUJ.TOOLROOM SHOBHA IMTIYAZ DESAI S 24600 10.13
17/8/2009 513337 GUJ.TOOLROOM DHIRAJLAL V SANGHVI HUF S 21300 10.13
17/8/2009 513337 GUJ.TOOLROOM DEVANG JAYANTKUMAR GADOYA S 20000 9.17
17/8/2009 524080 HAR.LEATHER CAMPHAR SEC.& ADV.P.LTD. B 103179 11.30
17/8/2009 524080 HAR.LEATHER VIJAY KISHANLAL KEDIA S 122575 11.28
17/8/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 30000 8.83
17/8/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 95945 6.57
17/8/2009 530255 KAY POW PAP OMPARKASH GUPTA B 53266 6.61
17/8/2009 530255 KAY POW PAP B.S.KHANDELWAL B 100000 7.68
17/8/2009 530255 KAY POW PAP JOLLY GUPTA S 59000 6.76
17/8/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 282401 7.08
17/8/2009 530255 KAY POW PAP NARENDER GUPTA S 76113 6.51
17/8/2009 530255 KAY POW PAP B.S.KHANDELWAL S 220028 6.65
17/8/2009 531602 KOFF BR PICT KISHORE B CHAUHAN B 300000 3.69
17/8/2009 511688 MATHEW EASOW PDKJ LTD B 18622 14.79
17/8/2009 532895 NAGREEKA CAP AGARWAL GALVANISING (P) LID. B 500000 39.50
17/8/2009 532895 NAGREEKA CAP LOTUS GLOBAL INVESTMENTS LTD S 500000 39.50
17/8/2009 532541 NIIT TECHNO OPG SECURITIES P LTD B 560175 136.71
17/8/2009 532541 NIIT TECHNO OPG SECURITIES P LTD S 560175 136.77
17/8/2009 530923 PASSARI CELL MANOHAR CHANDK B 24300 38.16
17/8/2009 533093 RAJ OIL TRANSGLOBAL SECURITIES LTD. B 218739 97.92
17/8/2009 533093 RAJ OIL ASHOKA FINSTOCK LTD B 363152 98.43
17/8/2009 533093 RAJ OIL TRANSGLOBAL SECURITIES LTD. S 218739 98.13
17/8/2009 533093 RAJ OIL WINALL VINIMAY PRIVATE LIMITED S 189000 93.40
17/8/2009 533093 RAJ OIL LIBERAL VINCOM PRIVATE LIMITED S 200000 99.37
17/8/2009 533093 RAJ OIL ASHOKA FINSTOCK LTD S 363152 98.68
17/8/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PVT LTD B 68980 49.96
17/8/2009 531952 RIBA TEXTILE REHWA CORPORATION LIMITED B 100000 50.37
17/8/2009 531952 RIBA TEXTILE SB LIQUOR DISTRIBUTORS PVT LTD. B 70000 50.40
17/8/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PVT LTD S 95334 50.25
17/8/2009 531952 RIBA TEXTILE SHAILESH SOMABHAI PATEL S 41802 50.38
17/8/2009 531952 RIBA TEXTILE SHAILESH SOMABHAI PATEL S 50000 50.40
17/8/2009 531952 RIBA TEXTILE NITABAEN SHAILESHBHAI PATEL S 50000 50.40
17/8/2009 530271 RICH CAP FIN SHYAMLAL RUPCHAND PARWANI B 57995 70.00
17/8/2009 530271 RICH CAP FIN RESHMA MANOHAR KANJANI S 36800 70.01
17/8/2009 531374 SAAG RR INFR SAAG MAURITIUS LTD S 300000 21.08
17/8/2009 531898 SANGUINE MD KUMKUM STOCK BROKER PVT LTD B 176455 3.44
17/8/2009 531898 SANGUINE MD SANDIP BHARAT BHAIRAVAL S 178856 3.44
17/8/2009 530109 VANTA COR SE NIRMALA PRAVINGALA B 14500 12.25
17/8/2009 530109 VANTA COR SE RAKSHA CHATRABHUJ VADHAIYA S 25000 12.25
17/8/2009 517429 VJIL CONSLTI VIKRAM MAN SINGH B 40620 8.79
17/8/2009 517429 VJIL CONSLTI NAGESWARA RAO NARAYANAMNAGESWARA S 66411 8.79
17/8/2009 531249 WELL PACK PA TUSHAR RAMESHBHAI PATEL B 24949 161.11
17/8/2009 531249 WELL PACK PA MANJO B BHANDARI B 22963 161.61
17/8/2009 531249 WELL PACK PA PANDYA HARDIK M B 25000 160.75
17/8/2009 531249 WELL PACK PA KISHORE B CHAUHAN S 25500 161.60
17/8/2009 531249 WELL PACK PA MANJO B BHANDARI S 25000 161.32
NSE Bulk Deals to Watch - Aug 17 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
17-AUG-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,239589,1125.69,-
17-AUG-2009,ABAN,Aban Offshore Ltd.,SMC GLOBAL SECURITIES LTD.,BUY,172093,1127.47,-
17-AUG-2009,BALAJITELE,Balaji Telefilms Limited,MINIX HOLDINGS PRIVATE LIMITED,BUY,341307,56.26,-
17-AUG-2009,FSL,Firstsource Solutions Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,2268341,32.70,-
17-AUG-2009,GOLDTECH,Goldstone Tech Ltd.,BHARATKUMAR RADHAKRISHNA RUIA,BUY,193535,23.90,-
17-AUG-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,4645632,50.68,-
17-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,8724632,21.70,-
17-AUG-2009,JAYSREETEA,Jayashree Tea Ltd.,LOTUS MF MASTER ACCOUNT,BUY,56000,207.84,-
17-AUG-2009,NAGREEKEXP,Nagreeka Exports Limited,AGARWAL GALVANISING PVT.LTD.,BUY,500000,17.20,-
17-AUG-2009,NIITLTD,NIIT Limited,ASIT C MEHTA FOREX PRIVATE LTD,BUY,867763,69.89,-
17-AUG-2009,NIITTECH,NIIT Technologies Limited,DINESH MUNJAL(HUF),BUY,310898,136.18,-
17-AUG-2009,NIITTECH,NIIT Technologies Limited,OM INVESTMENTS,BUY,502469,135.30,-
17-AUG-2009,NIITTECH,NIIT Technologies Limited,SUNDARAM BNP PARIBAS EQUITY MULTIPLIER FUND,BUY,300000,138.83,-
17-AUG-2009,SAKHTISUG,Sakthi Sugars Ltd.,PAN EMAMI COSMED Ltd.,BUY,175683,89.69,-
17-AUG-2009,SELMCL,SEL Manufacturing Company,MASTER TRUST LTD,BUY,700000,63.14,-
17-AUG-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,239589,1126.08,-
17-AUG-2009,ABAN,Aban Offshore Ltd.,SMC GLOBAL SECURITIES LTD.,SELL,212601,1126.85,-
17-AUG-2009,EVEREADY,Eveready Industries India,HDFC TRUSTEE CO LTD A/C HDFC INDIA PRUDENCE FUND,SELL,500000,57.68,-
17-AUG-2009,FSL,Firstsource Solutions Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,2191361,32.80,-
17-AUG-2009,GOLDTECH,Goldstone Tech Ltd.,NANDITA MIHIR MEHTA,SELL,193535,23.90,-
17-AUG-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,4724432,50.82,-
17-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,9093671,21.75,-
17-AUG-2009,NAGREEKEXP,Nagreeka Exports Limited,LOTUS GLOBAL INVESTMENTS LIMITED,SELL,500000,17.20,-
17-AUG-2009,NIITLTD,NIIT Limited,ASIT C MEHTA FOREX PRIVATE LTD,SELL,867763,70.16,-
17-AUG-2009,NIITTECH,NIIT Technologies Limited,DINESH MUNJAL(HUF),SELL,320895,136.16,-
17-AUG-2009,NIITTECH,NIIT Technologies Limited,OM INVESTMENTS,SELL,502469,135.50,-
17-AUG-2009,SELMCL,SEL Manufacturing Company,RITU SALUJA,SELL,700000,63.14,-
Post Session Commentary - Aug 17 2009
The domestic market today nosedived deep into red terrain on huge selling pressure over the ground as unsatisfactory US consumer sentiment report weakened concerns about the recovery in global economy. Market closed near day’s low tracking negative European markets. In addition, weak Asian markets along with lower US index futures also took huge beating on the bourses. Meanwhile, benchmark indices also exhibited weakness on monsoon worries as the country is going towards the worst drought year over the last two decades. The BSE Sensex ended below 14,800 level and NSE Nifty closed below 4,400 mark.
Market extended its previous session’s losses as opened in negative mirroring unfavorable global markets. The Asian stocks were in deep red today and US stocks markets closed lower on Friday, backed by the August consumer sentiment survey. A disappointing report on consumer sentiment sent the benchmark indices in the red as revealed that sentiment unpredictably declined to 63.2, the lowest level since March. Further, Indian benchmark indices continued to extend losses as selling emerged across the counters. There was not a single hope of recovery during the trading on weak sentiments led by losses in Asian and US stocks. During final trading hours, market slipped sharply and widened its negative gap to end the day with huge losses on intense selling pressure over the stocks. From the sectoral front, investors offloaded positions across the sectors. Besides, Realty, Metal, Auto, Oil & Gas, Bank, Capital Goods, FMCG and Consumer Durables stocks contributed to most of the selling pressure. Broader markets also supported the negative sentiments as BSE Midcap and Smallcap stocks lost more than 3% each.
Among the Sensex pack all 30 stocks ended in red territory. The market breadth indicating the overall health of the market remained negative as 1929 stocks closed in red while 674 stocks closed in green and 73 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 626.71 points or (4.07%) at 14,784.92 and NSE Nifty ended down by 24.95 points at 4,580.05. BSE Mid Caps and Small Caps closed with losses of 218.30 and 200.85 points at 5,385.51 and 6,211.71 respectively. The BSE Sensex touched intraday high of 15,284.23 and intraday low of 14,740.63.
Losers from the BSE Sensex pack are DLF Ltd (7.75%), Hindalco (7.35%), Tata Steel (6.82%), Sterlite Industries (6.69%), Tata Motors (6.67%), JP Associates (6.31%), Reliance Infra (6.15%), Herohonda Motors (5.92%), ITC Ltd (5.56%), M&M Ltd (5.31%), ICICI Bank (5.28%), Maruti Suzuki (5.18%), RCom (5.07%), L&T Ltd (5.00%), ACC Ltd (4.84%), ACCL Ltd (4.69%), Reliance (4.66%), ONGC Ltd (4.59%), Sun Pharma (3.39%) and Infosys Tech (2.78%).
On the global markets front the Asian markets that opened before the Indian market, ended in deep red. Shanghai Composite, Hang Seng, Nikkei 225, Singapore''s Straits Times Index and Seoul Composite closed lower by 176.34, 756.26, 328.72, 85.53 and 44.35 points at 2,870.63, 20,137.07, 10,268.61, 2,545.98 and 1,547.06 respectively. Chinese stocks plunged to their lowest level on renewed worries over the economic outlook and government policy. However, Japan’s economy made a sharp turnaround in the second quarter (April-June) as it expanded at an annual pace of 3.7% on a strong rebound in exports. Exports grew 6.3% from the previous quarter, the highest growth since the second quarter of 2002 though it failed to produce a positive revelation.
European markets, which opened after the Indian market, are trading in red tracking Wall Street losses overnight. In Frankfurt the DAX index is trading lower 97.90 points at 5,211.21 and in London FTSE 100 is trading down by 79.28 points at 4,634.39.
The BSE Realty index lost (7.58%) or 300.36 points at 3,662.70 on profit taking. Losers are Pheonix Mill (12.69%), Housing Dev (9.19%), Parsvnath (8.02%), DLF Ltd (7.75%) and Unitech Ltd (7.70%).
The BSE Metal index closed tumbled (6.15%) or 781.93 points at 11,938.91 after LMEX, a gauge of six metals traded on the London Metal Exchange, fell 3.05% last Friday. Losers are Hindalco (7.35%), JSW Steel (7.08%), Tata Steel (6.82%), Sterlite Industries (6.69%) and Jindal Steel (6.66%).
The BSE Auto index lost (4.77%) or 265.72 points at 5,303.50 on worries arising from scanty rains as auto firms derive larger revenue from rural India. Main losers are Tata Motors (6.67%), Bharat Forge (6.45%), Apollo Tyre (6.12%), Herohonda Motors (5.92%) and M&M Ltd (5.31%).
The BSE Oil & Gas index dropped by (4.42%) or 436.70 points at 9,432.51 oil prices extended losses. Losers are Aban Offshore (6.69%), Essar Oil Ltd (5.97%), Cairn Ind (4.98%), RNRL (4.91%) and Reliance Petroleum (4.68%).
The BSE Bank index dropped by (4.42%) or 436.70 points at 7,947.87. Scrips that lost are Kotal Bank (7.30%), IDBI Bank (5.55%), ICICI Bank (5.28%), Canara Bank (5.13%) and SBI (4.69%).
The BSE FMCG index ended down by (4.07%) or 103.86 points at 2,448.94 as United Spr (6.05%), ITC Ltd (5.56%), United Brew (4.95%), Tata Tea (4.60%) and Godrej Cons (4.43%) ended in red.
Bank of Baroda lost 3.21%. The bank revealed that it is likely to start life insurance venture with the UK-based Legal and General Group is expected in the next seven months.
Krypton Industries Ltd ended lower by 2.28%. The company has informed that the Board of Directors of the Company at its meeting held on August 14, 2009 took a decision to raise an Amount not exceeding Rs 11 Crore by issue of shares on right basis at such price as may be decided later by board.
LIC Housing Finance closed down by 3.66%. With effect from August 1, LIC Housing Finance cut interest rates for new loans by 0.5% where for customers opting for floating rate loans between Rs 30 lakh and Rs 75 lakh, the new rates will be 8.755 against 9.25%.
Berger Paints (India) Ltd fell 4.28% despite its board approved issuing 72 lakh shares of a face value of Rs 2 each to Nalanda India Fund.
Provogue India Ltd lost 3.14% after its board approved spending Rs. 50 crore to buy back 50 lakh shares at up to Rs 100 each.
KSK Energy Ventures Ltd tumbled 4.29%. The company said it will seek shareholders approval to raise as much as Rs 2000 crore by selling preferential shares.
Hindalco Industries ended down by 7.39%. The company has closed the Rogerstone (UK) operations of its Canadian subsidiary, resulting in 400 job losses. The plant was in deep trouble like Corus'' Teesside cast outfit, so nobody protested against the closure, said sources in the know.
Asian markets marks manic Monday
Shanghai slump by 5.8% while Hang Seng, Sensex hovers around 4% loss
Stock market in Asian region managed a minus closing on Monday, 17 August 2009, after a further deterioration in US consumer confidence cast doubts about the pace of the global economic recovery and soured appetite for risky assets. With investors choosing to tread a cautious path and looking to cash in on recent strong gains, stocks cutting across various sectors are feeling the heat in the Asian markets. The disappointing GDP figures from Japan also weighed on the markets as well.
On Wall Street, stocks gave up ground Friday, despite a half-hearted late-day comeback, after data showed an unexpected dip in consumer confidence in August. The Dow Jones Industrial Average, which dipped more than 150 points earlier in the day, ultimately gave up 76.79 points, or 0.8%, to 9,321.40, while the S&P 500 slid 8.64 points, or 0.9%, to 1004.09. The Nasdaq Composite fell 23.83 points, or 1.2%, to 1985.52. The indices logged their first down week in five, with the Dow down 0.5%, the S&P 500 off by 0.6%, and the Nasdaq lower by 0.7% in the five-day session.
In the commodity market, crude oil fell to the lowest in more than two weeks after a report last week showed an unexpected decline in consumer confidence in the U.S. economy.
Crude oil for September delivery fell as much as $1.82, or 2.7%, to $65.69 a barrel in after-hours electronic trading on the New York Mercantile Exchange, the lowest since 31 July 2009. It was at $66.12 at 10:01 a.m. London time. The contract had plunged 4.3% on 14 August 2009 after the U.S. consumer sentiment index fell to a five-month low.
Brent crude oil for October settlement declined as much as 2.5% on London’s ICE Futures Europe exchange and was down $1.31, or 1.8%, at $70.13 a barrel at 10:02 a.m.
Gold fell to the lowest price this month in London as the dollar strengthened, curbing the metal’s appeal as an alternative investment. Immediate-delivery bullion slipped as much as $10.67, or 1.1%, to $937.88 an ounce, the lowest price since July 31. It traded at $939.60 at 9:26 a.m. in London.
In the currency market, the Japanese yen edge higher against major currencies after Japan’s economic growth missed estimates and US regulators closed five lenders, boosting demand for safe-haven assets. The Japanese yen was quoted at 94.54 per greenback as investors withdrew from riskier assets. Japan’s currency rose to 133.79 per euro.
The Hong Kong dollar was trading at HK$ 7.7506 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 dropped more than two US cents as risk averse investors sold out of the currency amid falls on local and regional equity markets. At the local close, the dollar was trading at $US0.8214, down 2.14 US cents - or 2.5 per cent - from Friday's close of $US0.8427.
The dollar started the local trading week below $US0.8300 after a poor consumer sentiment survey and weak retail sales figures in the US resulted in a fresh bout of risk aversion and a negative finish on Wall Street.
In Wellington trade, the New Zealand dollar fell today from 11-month highs set last week as investors again became more averse to risk. At the closing, the NZ dollar was at US 66.89 cents, down from US 67.87 cents at the same time on Friday. On Friday night the NZ dollar peaked at US 68.86 cents, its highest level since 29 September 2008.
The South Korean won ended at 1,256.9 won to the U.S. dollar, down 17.7 won from Friday's close as investors reduced appetites for emerging currencies on weak U.S. economic data.
The Taiwan dollar weakened against the greenback. The Taiwan dollar fell against the US dollar as it was trading lower at NT$ 32.9760, down by NT$ 0.0810 from Friday’s close of NT$32.8950.
Coming back in equities, Shanghai stocks suffering their biggest percentage drop so far this year while Hong Kong shares were also weighted down by the performance as well as a steep fall in U.S. stock futures and commodity prices.
In Japan, shares market plummeted with benchmark indices eased from 10-month high on broad based sell off as profit takers took money after weak finish of Wall Street and commodity prices. Disappointing US consumer confidence reports further fueling the decline as it aggravated doubts in the recovery's strength, overshadowing news that Japan's economy climbed out of its recession last quarter. Exporters were dragged down by the yen's strength as risk-averse investors bought the low-yielding currency in search of a perceived safe haven.
At the closing bell, the Nikkei 225 Stock Average index tumbled 328.72 points, or 3.1% to 10,268.61, meanwhile the broader Topix index dropped 23.98 points, or 2.46% to 949.59.
On the economic front, the Cabinet Office said in a statement that Gross domestic product expanded at an annual 3.7% pace in the three months ended June 30, following an 11.7% decline in the previous quarter, as a revival in exports and consumer spending helped the country climb out of its worst postwar recession
The Federation of Electric Power Companies of Japan said Japan's 10 utilities generated 10.6% less electricity in July to 84.10 billion kilowatt-hours from the same month a year earlier.
In Mainland China, grim consumer data for August dented Wall Street shares on Friday while fears that the Chinese government may move to squeeze liquidity sent China's benchmark stock index sharply lower. Lower commodity prices, persistent worries over tightening in bank loans and weak economic data dampened investor sentiment further.
At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, plummeted 176.34 points, or 5.79%, to 2,870.63, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, stumbled 204.19 points, or 6.1%, to 3,140.27.
On the economic front, the commerce ministry said foreign direct investment into China slid for a 10th straight month, decreasing 36% in July 2009 from a year earlier.
In Australia, the stock market tumbled snapped five days of winning streak, dragged down by miners, materials, and energy on the back of pullback in commodity prices and weak finish of Wall Street market after US consumer confidence unexpectedly declined in August. Investors pulled out of financials following last week’s run up in the sector. The Consumer discretionary and building related stocks finished below the line on profit booking.
At the closing bell, the benchmark S&P/ASX200 index tumbled 72.6 points, or 1.63%, to 4,388.4, meanwhile the broader All Ordinaries dropped 67 points, or 1.5%, to 4,398.1.
In New Zealand, stock market commenced the first trading day of the week in the negative terrain following pessimism on the Wall Street on Friday. The share market began faltering since the early hours taking cues from other Asian markets that were trading deep in the red region. NZ benchmark index ended its three-day winning streak to end down more than 2% on Monday. The NZX50 plunged by 2.06% or 65.17 points to 3086.08. The NZX 15 declined 2.33% or 136.78 points to close at 5659.47.
On the economic front, New Zealand’s service sector showed its first sign of expansion, although at a very modest level, for the first time since March 2008, according to the BNZ Capital - Business NZ Performance of Services Index (PSI). A gauge of service sector activity edged into expansion in July for the first time since March 2008. The BNZ Capital -- Business NZ Performance of Services Index (PSI) was at 50.1 last month, 5.1 points up from June. A PSI reading above 50 indicates the sector is generally expanding. Three of the five diffusion indices that make up the PSI were still showing contraction in July.
In South Korea, stock market closed lower as investors were spooked by U.S. losses last week and bearish Chinese stocks. The benchmark Korean Composite Stock Price Index (KOSPI) slumped 44.35 points to 1,588.73
In Singapore, the stock market climbed up after opening lower, dragged down by major blue chips on the back of weak finish of Wall Street and other Asian market. Financials and properties shares tumbled on speculation the worst of the US financial crisis isn’t over after US regulators last week closed five lenders and on concerns about possible tightening of Chinese bank lending policies. At the closing bell, the blue chip Straits Times Index stumbled 85.53 points, or 3.25%, to 2,545.98.
In Taiwan, stock market in Taiwan gave up its two-week high status by starting a week on a negative note, as weak consumer data from the United States raised doubts about the strength of economic recovery, pressuring export-reliant stocks. In addition, Taiwan President Ma Ying-jeou said during an interview with a local newspaper that the signing of a FTA-like financial agreement with China known as an Economic Cooperation Financial Agreement (ECFA) probably would not take place until 2010 struck investors as bad news.
The benchmark Taiex share index started the new week by losing its two weeks high position by giving up 137.71 points or 1.95% in a day, closing the day at 6931.80, logging its worst daily percentage fall in five weeks.
On the economic front, the Financial Supervisory Commission (FSC) and the Bankers Association of Republic Of China plan to have financial institutions bear realty-loan debts of insolvent typhoon-Morakot victims whose mortgaged properties have been lost or offer a five-year grace period for principals and interests to others still with repayment capability.
In Philippines, the stock market closed lower, weighed down by the losses on Wall Street on Friday, which in turn brought the key heavy weight stocks under selling pressure. Moreover, razor sharp losses in key heavy weight stocks also dragged the composite index lower. The benchmark index PSEi plummeted 2.76% or 78.83 points to 2,771.18, while the All Shares index declined 2.37% or 43 points to 1,763.98.
In India, global sell-off after a disappointing US consumer sentiment report reigniting concerns about the global economic recovery triggered a sharp sell-off on the domestic bourses. Sustained bear hammering kept indices under pressure throughout the day. The BSE 30-share Sensex was down 626.71 points or 4.07% at 14,784.92. The S&P CNX Nifty was down 192.15 points or 4.20% to 4,387.90.
Elsewhere, Malaysia's Kula Lumpur Composite index went down 1.64% or 19.52 points to 1169.05 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2386.86.
In other regional market, European shares fell sharply Monday as worries over bank capitalization, and weak commodity-sector performance preyed on investor confidence. On a regional level, the U.K. FTSE 100 index dropped 79.86 points or 1.7% to 4,634, the German DAX index fell 1.9% or 101.41 points to 5,186.10 and the French CAC-40 index skidded 2.1% or 73.75 points to 3,422.
NHPC IPO price fixed at Rs 36 per equity share
Raises Rs 6,048 crore through recently concluded IPO
The Indian government fixed a price of Rs 36 a share for the allotment of shares in the initial public offer (IPO) of state-run hydropower generator NHPC, thus raising Rs 6,048 crore through the recently concluded public issue. The IPO, biggest since the Reliance Power issue in January 2007, was subscribed 23.5 times. The IPO received bids for 3981.26 crore shares as against 168 crore shares offered by the company.
The qualified institutional buyers (QIBs) category was subscribed 29.16 times. Investors in this category put in bids for 2861.44 crore shares as against 98.12 crore shares reserved for this category.
The non institutional investor category, made up of high net worth individuals and corporate investors, was subscribed 56.70 times. The category mopped up bids for 927.41 crore shares as against 16.35 crore shares set aside by the company.
The retail investor category was subscribed 3.87 times. Total bids in this category were for 190.01 crore shares as against 49.06 crore shares assigned by the company.
The NHPC IPO, in which investors were asked to bid for shares in the price range of Rs 30-36 a share, opened on 7 August 2009 and closed on 12 August 2009.
The shares on sale during the offer included the government's 5% equity and 10% of fresh equity issued by the PSU.
The government would get Rs 2,016 crore while NHPC would retain the remaining Rs 4,032 crore. Post IPO, the government's stake would come down to little over 86% in the power PSU.
NHPC is the largest hydroelectric power generating company in the country. With an installed capacity of 4,815 megawatt (MW), NHPC has 11 projects under construction aggregating to a total capacity of 4,622 MW. The new projects are likely to be commissioned by 2012.
NHPC would use the IPO proceeds to part fund its ongoing investments in 11 projects. It also has plans to add 14,000 MW of power by 2020 for which it has either completed survey of projects or was in the process of surveying several others.
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 36 times at the offer price band of Rs 36 per share.
Sensex tanks 4.07% tracking global sell off
Global sell-off after a disappointing US consumer sentiment report reigniting concerns about the global economic recovery triggered a sharp sell-off on the domestic bourses. Sustained bear hammering kept indices under pressure throughout the day. The BSE 30-share Sensex fell 626.71 points or 4.07%, after cracking below the psychological 15,000 mark in early afternoon trade. Stocks across sectors collapsed with those from realty, metal, banking and auto gripped firmly under sell-off. All the 30 shares from Sensex pack declined.
European shares were lower on Monday, retreating for a second day as investors became cautious on global recovery hopes.The key benchmark indices in France, Germany and UK were down by between 1.92% to 2.52%.
Asian stocks dropped today for the first time in three days after an unexpected decline in a U.S. consumer confidence index raised concern about the strength of a revival in global growth. The key benchmark indices in China, Hong Kong, South Korea, Singapore and Taiwan fell by between 1.95% to 5.79%.
Japan's Nikkei 225 Stock Average fell 3.1% even as a government report showed the country's economy grew for the first time in five quarters. Gross domestic product expanded at an annual 3.7 % pace in the three months ended 30 June 2009, following an 11.7% decline in the previous quarter.
Trading at the US index futures indicated Dow could fall 176 points at the opening bell today, 17 August 2009.
Wall Street witnessed a broad based decline on Friday, 14 August 2009 as stocks slid snapping a four-week winning streak. A disappointing report on consumer sentiment sent the benchmark indices in the red but they closed off lows. The Dow Jones Industrial Average fell 76.79 points, or 0.8%, to 9,321.40. The S&P 500 index fell 8.64 points, or 0.9%, to 1,004.09, while the Nasdaq Composite Index fell 23.83 points, or 1.2%, to 1,985.52.
Contributing to the fall was the August consumer sentiment survey by the University of Michigan. The report showed sentiment unexpectedly dropped to 63.2, the lowest level since March. The reading was well below the 69.0 that was widely expected.
And, consumer prices were flat in July from June, but tumbled 2.1% from July last year, its largest decline since January 1950.
However, the industrial production rose 0.5% in June, the first increase in nine months, thanks to inventory rebuilding and the reopening of auto plants.
Back home, the government will announce on 27 August its foreign trade policy for the next five years starting from FY 2010, Trade Minister Anand Sharma said on Monday. The policy will address the problems of exporters, particularly the labour-intensive sector, but did not elaborate. India's exports fell an annual 27.7% in June 2009 to $12.8 billion, its ninth straight monthly fall, as recession at developed nations continue to slash demand for Indian goods.
A top finance ministry official said on Monday, the Indian government has no plan to go slow on its borrowing schedule for the first half of the 2009/10 fiscal year that began in April. The government will announce the details of the next auction later on Monday. The government had announced that it would borrow a total of Rs 2,99,000 crore in the first half out of its full-year borrowing target of a record Rs 4,51,000 crore.
Prime Minister Manmohan Singh said in his Independence Day speech on 15 August that returning to a high growth rate is the greatest challenge facing India, with a weak monsoon making the task harder, but the economy may improve by year-end. India has adequate stocks of foodgrains, and the government will keep food prices in check, Singh said. The goal is 4 % annual growth in agriculture, and I am confident it will be achieved in the next five years. he said.
The monsoon situation remains grim with the country heading into the worst drought year over the last two decades. Monsoon was 56% below normal in week to 12 August 2009 and was 72% below normal in the soyabean growing central region in past one week, India Meteorological Department (IMD) said on 13 August 2009. Monsoon rains were 29% below normal during the period from 1 June 2009 to 12 August 2009. However, India's weather office has ruled out an early withdrawal for this year's monsoon which has still one and half months to complete its full journey. The progress of monsoon is closely watched as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
However, some of India's main reservoirs in the western and southern parts could reportedly be used to mitigate the impact of poor monsoon rains on summer-sown crops. Comfortable water levels of the reservoirs in the southern and western parts could help irrigate lentils, oilseeds, and rice, Agriculture Minister Sharad Pawar said. Government data last week showed water in India's main reservoirs rose to 38 % of their capacity, up 2 percentage points from a week ago.
The BSE 30-share Sensex fell 626.71 points or 4.07% at 14,784.92. The Sensex fell 127.40 points at the day's high of 15,284.23 in early trade. At the day's low of 14,740.63, the Sensex fell 671 points in late trade.
The S&P CNX Nifty was down 192.15 points or 4.2% to 4,387.90. Nifty August 2009 futures were at 4375.10, at a discount of 12.80 points as compared to the spot closing of 4,387.90. Turnover in NSE's futures & options (F&O) segment was Rs 70983.18 crore higher than Rs 63,891.72 crore, on Friday, 14 August 2009.
BSE clocked a turnover of Rs 4,956 crore lower than Rs 5,649.97 crore on Friday, 14 August 2009.
Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 5137.61 points or 53.25% in calendar year 2009 as on 15 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 6,624.52 points or 81.17% as on 15 August 2009. FII inflow in calendar year 2009 totaled Rs 36,571.70 crore (till 13 August 2009).
Coming back to today's trade, the BSE Mid-Cap index was down 3.9% and the BSE Small-Cap index was down 3.13%. Both the indices outperformed the Sensex.
The BSE Healthcare index (down 2.62%), the BSE IT index (down 2.76%), the BSE Teck index (down 2.86%), the BSE Power index (down 3.04%), the BSE PSU index (down 3.21%), the BSE Capital Goods index (down 3.78%), the BSE Consumer Durables index (down 3.8%), outperformed the Sensex.
The BSE FMCG index fell 4.07% and matched Sensex's 4.07% decline.
The BSE Realty index (down 7.58%), the BSE Metal index (down 6.15%), the BSE Auto index (down 4.77%), the BSE Oil & Gas index (down 4.42%), the BSE Bankex (down 4.08%), underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 671 shares advanced as compared with 1924 that declined. 73 shares remained unchanged.
All the shares from the 30 share Sensex pack fell.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 4.66% to Rs 1,939.60. Reliance Industries has reportedly found natural gas reserves in a well drilled on its NEC-25 block in Mahanadi basin, off the Orissa coast, the company's junior partner Niko Resources of Canada said. Niko Resources holds 10 % interest in the Mahanadi basin shallow water block covering an area of 10,755 square kilometer (sq km) in water depths ranging between 20-600 meters. RIL holds 90 % interest in the Bay of Bengal block.
As per recent report Prime Minister Manmohan Singh has constituted a panel of four senior cabinet ministers that will continuously review the government's position in the Supreme Court case over allocation of gas from the Krishna-Godavari basin to ensure that their ministries don't speak in divergent voices on the vexed issue.
The dispute between Reliance Industries and Reliance Natural Resources (RNRL) which is centered around the price and supply of gas from KG basin operating by RIL to RNRL for the power plants of Anil Dhirubhai Ambani group.
Oil exploration stocks fell as oil prices extended losses on Monday, after posting their biggest loss in more than two weeks on Friday after a report showing weak U.S. consumer confidence darkened the economic outlook. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.
India's largest state-run oil exploration firm by sales ONGC fell 4.59%. U.S. crude oil futures fell $1 to $66.51 a barrel on the New York Mercantile Exchange.
Cairn India fell 4.98%. As per recent reports, the company is likely to start crude production from its Rajasthan oil fields later this month. The company has already reached pricing agreements for the crude with principal buyers, Indian Oil Corporation and Mangalore Refinery and Petrochemicals.
Bank stocks fell on profit taking. India's largest private sector bank by net profit ICICI Bank fell 5.28% as its ADR fell 2.93% on Friday.
India's biggest commercial bank in terms of branch network State Bank of India (SBI) fell 4.69%. Among other PSU banks, Bank of Baroda, Punjab National Bank, Bank of India, Union Bank of India fell by between 1.06% to 3.41%.
India's second largest private sector bank by net profit HDFC Bank fell 1.37% even as its ADR rose 0.59% on Friday.
India's largest dedicated home loan lender HDFC fell 2.54%. The lender last week reduced home loan rates by 50 basis points to 9% in the Rs 30 lakh to Rs 50 lakh segment for new loans.
Realty shares fell on profit taking. Phoenix Mills, Unitech, Omaxe, Indiabulls Real Estate, Ansal Properties, DLF, Anant Raj Industries fell by between 1.01% to 13.29%. Realty shares had risen sharply in the past few weeks on hopes the government's thrust on housing sector in the Union Budget 2009-2010 may help extend recovery in housing demand witnessed in the past few months.
Metal shares fell after LMEX, a gauge of six metals traded on the London Metal Exchange, fell 3.05% on Friday, 15 August 2009. Steel Authority of India, National; Aluminum Company, Hindalco Industries, Tata Steel, Hindustan Zinc fell by between 3.63% to 7.35%.
Auto stocks fell on concerns arising from scanty rains. Auto firms derive substantial revenue from rural India. Maruti Suzuki India, Hero Honda Motors, Mahindra & Mahindra, TVS Motor Company fell by between 5.18% to 5.92%.
India's largest commercial vehicle maker by sales Tata Motors fell 6.67%. Tata Motors is reportedly planning to invest about Rs 8,000 crore during the next three-four years as capital expenditure and product development. The money is likely to be spent on launching new models and scaling up its operations.
Construction, capital goods and cement shares fell on profit taking after recent gains. Higher government spending on infrastructure sector in 2009-2010 to provide a stimulus to the economy, may result in increase order flow for construction and capital goods firms and may help boost cement demand. Among construction shares, IVRCL Infrastructure & Projects, Hindustan Construction Company, Nagarjuna Construction Company, fell by between 4.51% to 6.28%.
Bidding is expected to start soon on 139 road projects covering 14,395 kilometres at a cost of about US$ 21 billion.
Capital goods stocks, Larsen & Toubro, Thermax, Punj Lloyd, ABB, Crompton Greaves, Praj Industries fell by between 0.8% to 7.14%.
From the cement pack, UltraTech Cement, Grasim Industries, ACC, Ambuja Cements, fell by between 0.75% to 4.84%.
FMCG stocks fell on concerns over scanty rains. FMCG firms derive substantial revenue from rural markets. Dabur India, Tata Tea, Nestle India, United Spirits, ITC, Hindustan Unilever fell by between 2.73% to 6.05%.
IT stocks fell on unexpected decline in a U.S. consumer confidence index after weak US retail sales and increase in weekly jobless claims. IT companies derive a lion's share of revenues from exports to the US. India's second largest IT exporter by sales Infosys fell 2.78% as its American depository receipt (ADR) fell 2.19% on Friday. India's third largest IT exporter by sales Wipro fell 2.7% as its ADR fell 1.53% on Friday India's largest IT exporter by sales TCS fell 1.9%.
Power companies fell after reports the power ministry is planning to cap the sale price of electricity sold in the open market if the projects claim tax benefits. CESC, Power Grid Corporation, Tata Power Company, Reliance Infrastructure, Jindal Steel and Power, GVK Power & Infrastructure fell by between 1.48% to 6.15%. The government is trying to prevent power companies from making windfall gains while enjoying the tax benefits report said.
Airline companies fell after state-run oil marketing firms raised jetfuel prices on account of rising global crude price. Jet Airways, Kingfisher Airlines and SpiceJet fell by between 3.97% to 8.58% declined as higher aviation turbine fuel (ATF) price would increase the operating cost of airlines.
State-run oil marketing companies (PSU OMCs) on 15 August 2009, hiked jet fuel prices by 4.5% in step with firming international oil rates, the second time in a month. The new price came into effect from Sunday, 16 August 2009. Jetfuel contributes 40-45% to the operating cost of an airline.
Shares of sugar companies fell on market talk government will hike levy sugar quota to 20 percent from 10 percent now.Shree Renuka Sugars, Bajaj Hindusthan and Balrampur Chini fell by between 2.06% to 3.43%.
Levy sugar is the amount government procures from sugar millers at a lower rate. This could affect the miller's profitability by 3%-4 % as they will have to sell the commodity at a lower price.
Fertiliser shares fell on concerns over progress of India's annual monsoon. GSFC, RCF, National Fertilisers, Chambal Fertilisers fell by between 3.07% to 7.41%.
Suzlon Energy clocked the highest volume of 1.87 crore shares on BSE. Firstsource Solutions (1.59 crore shares), IFCI (1.52 crore shares), Unitech (1.34 crore shares) and Mahindra Satyam (1.27 crore shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 192.60 crore on BSE. Suzlon Energy (Rs 160.16 crore), Tata Steel (Rs 147.73 crore), Aban Offshore (Rs 129.23 crore), Mahindra Satyam (Rs 128.39 crore) were the other turnover toppers in that order.
Pre Session Commentary - Aug 17 2009
Today domestic markets are likely to open negative as majority of Asian markets are trading with heavy losses. Nikkei has conceded more than 2% loss on the back of concerns of weak consumer sentiment in the US. However Japan’s economy grew by 0.9% in April-June quarter marking its fist expansion in the last five quarters. The sentiments across Asia are weak and therefore in the domestic market one could witness an early selling pressure erupting across broader level. During the day the domestic markets are likely to trade negative.
On Friday, domestic markets closed with staggering gains. After previous session’s strong rally, the domestic market closed the today’s instable session in red terrain on profit booking. Depressing US index futures weighed on the sentiments. Benchmark indices were under pressure also on concerns regarding poor monsoon. However, market tried to recover during mid session on the positive Asian markets and firm European markets, though were unable to continue the respite. The BSE Sensex ended below 15,450 level and NSE Nifty closed below 4,500 mark.
The BSE Sensex closed lower by 106.86 points at 15,411.63 and NSE Nifty ended down by 24.95 points at 4,580.05. BSE Small Caps closed with gains of 25.51 points at 6,412.56 whereas BSE Mid Caps ended with losses of 50.8 points at 5,603.81. The BSE Sensex touched intraday high of 15,535.47 and intraday low of 15,367.61.
On Friday, US stock markets closed lower. There was broad based selling pressure on the back of some latest dose of data. July CPI and core CPI were released ahead of the opening bell, which showed a monthly growth of 0.1%. The July CPI data was inline with expectations and therefore hardly affected the market sentiments. The Industrial production data for July recorded a stronger than expected growth of 0.5%. Material stocks were the laggards of the day with a loss of 2.7% followed by Retailers that shed 1.7%. Financial stocks provided a lot of support to the markets as they pared their early losses of 2% to close with modest loss of 0.5% only. US light crude oil futures for September delivery closed at $67.29 per barrel lower by 4.6% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed lower by 76.79 points at 9,321.40, NASDAQ index declined by 23.83 points to 1,985.52 and the S&P 500 (SPX) closed lower by 8.64 points at 1004.09.
Today major stock markets in Asia are trading negative. Japan''s Nikkei is trading down by 246.62 points at 10,521.02 followed by Hang Seng which is trading lower by 596.60 points at 20,471.77 and Taiwan Weighted is trading also trading lower by 84.02 points at 7,034.27.
Indian ADRs ended mixed on Friday. In the IT pack, Infosys was down 2.19%, Satyam was down 1.96%, Wipro was down 1.53%, while Patni was up 0.93%. In the Telecom space, MTNL was down 3.65% but Tata Comm was up 1.88%. In the banking lot, ICICI Bank was down 2.93%, while HDC Bank was up 0.59%. In the other sectors, Dr Reddys was down 0.72%, Tata Motors was down 3.51% and Sterlite was down 1.38%.
On Friday, the partially convertible rupee ended at 48.24/25 per dollar, 0.3% weaker than previous close at 48.11/12. It rupee weakened duet to lackluster local stocks markets and also slowing economic growth after weak monsoon rains dented the outlook for farm output.
On BSE, total number of shares traded were 44.38 Crore and total turnover stood at Rs 5,649.97 Crore. On NSE, total number of shares traded were 90.76 Crore and total turnover was Rs 16,421.25 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 40787003 shares, followed by Suzlon Energy with 38859379, DLF with 14406199, Hindalco with 12990865 and Tata Steel with 11898887 shares.
On NSE Future and Options, total number of contracts traded in index futures was 712281 with a total turnover of Rs 15,422.16 Crore. Along with this total number of contracts traded in stock futures were 548389 with a total turnover of Rs 17,775.52 crore. Total numbers of contracts for index options were 1243373 with a total turnover of Rs 28,858.95 Crore and total numbers of contracts for stock options were 55779 and notional turnover was Rs 1,835.09 Crore.
Today, Nifty would have a support at 4,486 and resistance at 4,532 and BSE Sensex has support at 15,065 and resistance at 15,236.
Oil Marketing companies may witness action
State-run oil marketing companies on 15 August 2009, hiked jet fuel prices by 4.5% in step with firming international oil rates, the second time in a month. Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation raised Aviation Turbine Fuel (ATF) rates in Delhi by Rs 1,662 per kilolitre (kl) to Rs 38,585 per kl. The hike in ATF or jet fuel prices comes on the back of Rs 585 per kl or 1.6% hike on 1 August 2009.
Tata Motors is reportedly planning to invest about Rs 8,000 crore during the next three-four years as capital expenditure and product development. The money is likely to be spent on launching new models and scaling up its operations.
The board of HCL Infosystems approved raising up to Rs 500 crore via qualified institutional placement in domestic or international markets. The board also approved issuing convertible warrants not exceeding Rs 325 crore to one or more founders of the company.
Religare Enterprises has reortedly submitted a non-indicative bid to buy the Asian private banking assets of Dutch insurance and banking major ING Bank.
The promoters of Quippo Telecom Infrastructure, the telecom tower subsidiary of SREI Infrastructure Finance, will reportedly raise about Rs 900 crore by issuing fresh equity and selling shares in the secondary market.
The board of Provogue India approved spending Rs 50 crore to buy back 50 lakh shares at a maximum price of Rs 100 each. The buyback will remain open till 12 February 2010.
The board of Berger Paints India approved the issue of 72 lakh shares to Nalanda India Fund. The minimum price at which the shares can be sold will be determined on 17 August 2009 as per the market regulator's guidelines.
Market may resume weak
The market is monitoring the international markets for further direction and the weakness across the global markets may drag down the local indices. The market may open in negative territory following the slump in Asian markets in morning trades. However, after posting significant gains in last week sessions, buying interest may continue on the back of firm trend. Among the key local indices, the Nifty has good support around 4520-4460 levels and upside till 4620-4660 levels. The Sensex has a likely support at 15219 and may face resistance at 15545.
US indices slipped on Friday with the Dow ended lower at 9321 down 77 points, while the tech-laden Nasdaq declined to close 24 points lower at 1986.
Barring few select floats, most of the Indian ADRs posted loss on the US bourses. Infosys, Satyam, Wipro, Tata Motors, ICICI Bank and Dr Reddy lost nearly 1-3% each, Among the select gainers VSNL gained the most and moved up over 1.88% while HDFC Bank and Patni Computers ended with decent gains.
Crude oil prices in the international market edged lower, with the Nymex light crude oil for September delivery lost by $3.01 to close at $67.51 per barrel. In the commodity space, the Comex gold for December series declined $7.80 to settle at $948.70 a troy ounce.
Market may fall tracking slide in global stocks
The key benchmark indices may extend Friday's (14 August 2009) losses on weak global cues. Weak progress of India's annual monsoon may also weigh on investor sentiment.
Asian stocks dropped today for the first time in three days after an unexpected decline in a U.S. consumer confidence index raised concern about the strength of a revival in global growth. The key benchmark indices in China, HongKong, South Korea, Singapore and Taiwan fell by between 1.3% to 2.75%.
Japan's Nikkei 225 Stock Average fell 2.45% even as a government report showed the country's economy grew for the first time in five quarters. Gross domestic product expanded at an annual 3.7 % pace in the three months ended 30 June 2009, following an 11.7% decline in the previous quarter
Wall Street witnessed a broad based decline on Friday, 14 August 2009 as stocks slid snapping a four-week winning streak. A disappointing report on consumer sentiment sent the benchmark indices in the red but they closed off lows. The Dow Jones Industrial Average fell 76.79 points, or 0.8%, to 9,321.40. The S&P 500 index fell 8.64 points, or 0.9%, to 1,004.09, while the Nasdaq Composite Index fell 23.83 points, or 1.2%, to 1,985.52.
Contributing to the fall was the August consumer sentiment survey by the University of Michigan. The report showed sentiment unexpectedly dropped to 63.2, the lowest level since March. The reading was well below the 69.0 that was widely expected.
And, consumer prices were flat in July from June, but tumbled 2.1% from July last year, its largest decline since January 1950.
However, the industrial production rose 0.5% in June, the first increase in nine months, thanks to inventory rebuilding and the reopening of auto plants.
Back home, the BSE 30-share Sensex shed 106.86 points or 0.69% at 15,411.63 on Friday, 14 August 2009.
As per the provisional figures on NSE, foreign funds sold shares worth Rs 126.10 crore while domestic funds bought shares worth Rs 443.74 crore on Friday.
Meanwhile, Prime Minister Manmohan Singh said in his Independence Day speech on 15 August that returning to a high growth rate is the greatest challenge facing India, with a weak monsoon making the task harder, but the economy may improve by year-end. India has adequate stocks of foodgrains, and the government will keep food prices in check, Singh said. The goal is 4 % annual growth in agriculture, and I am confident it will be achieved in the next five years. he said.
The monsoon situation remains grim with the country heading into the worst drought year over the last two decades. Monsoon was 56% below normal in week to 12 August 2009 and was 72% below normal in the soyabean growing central region in past one week, India Meteorological Department (IMD) said on 13 August 2009. Monsoon rains were 29% below normal during the period from 1 June 2009 to 12 August 2009. The progress of monsoon is closely watched as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
End of gold's weekly gain
Consumer price report dampen precious metal prices
Precious metal prices fell on Friday, 14 August, 2009. Prices fell as economic report on that day showed that consumer prices registered sharpest drop on a yearly basis in July, 2009 thereby reducing the appeal of precious metals as a hedge against inflation. Also weighing on gold was the dollar which turned higher against most of its major rivals.
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 December delivery ended at $948.7, lower by $7.8 (0.8%) an ounce on the New York Mercantile Exchange. For the week, gold ended lower by almost 1.1%. Year to date, gold prices are higher by 6.7%. After four consecutive weekly gains, this was yellow metal's first weekly drop.
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 (7.5%) since then.
On Friday, Comex silver futures for September delivery lost 26.5 cents (1.8%) to $14.722 an ounce. For the week, silver ended higher by 0.23%.
Silver ended 2.7% higher for July, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 30.5% this year. For 2008, silver had lost 24%.
In the currency market on Friday, the dollar index which weighs the value of dollar against a basket of six other currencies, rose by 0.5%.
The Labor Department reported on Friday that the consumer price index was down 2.1% on a year-over-year basis in the sharpest annual decline since 1950. However, the core CPI is up 1.5% over the past year.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Crude tumbles
Prices end substantially lower on consumer data
Crude prices ended lower on Friday, 14 August, 2009. Prices tumbled on Friday as the dollar rose and survey showed that consumer sentiment once again dropped in US fuelling recessionary worries.
On Friday, crude-oil futures for light sweet crude for September delivery closed at $67.51/barrel (lower by $3.01 or 4.3%). During intra day trading, crude fell to an intra day low of $67.12/barrel. For the week, crude ended lower by 4.8%.
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 44%.
In the currency market on Friday, the dollar index which weighs the value of dollar against a basket of six other currencies, rose by 0.5%.
The Reuters/University of Michigan index reported on Friday that U.S. consumer sentiment index unexpectedly declined in early August to 63.2 from 66.0 in July, 2009.
The Labor Department reported on Friday that the consumer price index was down 2.1% on a year-over-year basis in the sharpest annual decline since 1950. However, the core CPI is up 1.5% over the past year.
EIA reported earlier during the week that crude supplies rose by 2.5 million barrels to stand at 352.0 million barrels during the week ended 7, August, 2009. That was higher than the 1.2 million barrels expected. The report also showed that gasoline stocks fell by 1 million barrels and distillate inventories rose by 800,000 barrels last week.
In the latest report, The International Energy Agency revised up its global oil-demand forecasts for 2009 and 2010 by 190,000 barrels a day and 70,000 barrels a day respectively, citing a stronger outlook for Asia for both years.
Also at the Nymex on Friday, September reformulated gasoline fell 8.12 cents, or 4%, to end at $1.9380 a gallon and September heating oil dropped 6.18 cents to finish at $1.8410 a gallon.
September natural-gas futures fell 9.80 cents, or 3%, to end at $3.238 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
Daily News Roundup - Aug 17 2009
Tata Steel aims for JV with South Africa, Vietnam mining firms. (FE)
Idea Cellular plans to hive off the six overlapping licences it inherited from Spice Communications it acquired last year into two entities. (ET)
Special Undertaking of UTI is looking to divest around 17% stake from its 27.02% holding in Axis Bank within next four months. (ET)
Tata Motors may buy the entire stake of its partner, Thonburi Automotive, in the Thailand venture in case the overseas entity is unable to raise fresh equity. (TOI)
Maruti Suzuki plans to launch sports luxury car Kizashi in India in 2010. (ET)
Reliance Industries drops out of the alliance with ONGC and IOC for jointly bidding for a US$16-18bn oilfield in Venezuela. (TOI)
Tata Motors plans to invest about Rs80bn during the next three to four years as capital expenditure and product development.(TOI)
Reliance Industries is ready to supply gas to NTPC’s NCR plants. (ET)
Tata Motors seeks guarantees from state-owned banks to raise money to meet working capital needs and upgrade technology. (ET)
Coal India plans two-phase 15% disinvestment.(BL)
JSW Energy has filed regulatory application for an IPO to raise up to Rs30bn. (ET)
ONGC approaches the DoT for allocation of spectrum to set up a captive communication network for its Western Offshore site. (BS)
Reliance Industries has found natural gas reserves in a well drilled on its NEC-25 block in Mahanadi basin, off the Orissa coast.(TOI)
L&T plans of forming two separate JVs for manufacturing and servicing of defence equipment with Germany’s EADS Deutschland is facing roadblocks. (ET)
The civil aviation ministry has sought Cabinet’s nod for Air India to float tax-free bonds worth Rs50bn and fresh equity from the government to fund its fleet expansion plans and other expenses. (ET)
Coal India plans a price hike of 11%. (Mint)
Bajaj Auto planning 1-tonne commercial vehicle. (BL)
Orbit has raised Rs1.45bn through the issue of shares to QIB on a private placement basis. (ET)
The Delhi High Court rejects a petition by Jet Airways challenging a penalty of ~Rs44 lakh imposed on the airline by the government for a delay in submission of Indland Air Travel Tax. (ET)
Government has fixed a price of Rs36/share for the allotment of shares in NHPC, thus raising Rs60bn. (TOI)
The Supreme Court has rejected iron-ore mining lease application of Orissa Sponge Iron and Steel. (ET)
HCL Infosystems plans to raise Rs8.25bn through the issue of securities, including shares and warrants, in the global or domestic markets. (ET)
Man Industries receives Rs7.5bn order.(BL)
Quippo Telecom Infrastructure, the telecom tower subsidiary of SREI Infrastructure Finance, will raise Rs9bn by issuing fresh equity and selling shares in the secondary market.(Mint)
Religare Enterprises submits a non-indicative bid to buy the Asian private banking assets of ING, Dutch insurance and banking major. (ET)
Datacom Solutions has signed an infrastructure sharing deal with Tata Teleservices that will allow it to lease bandwidth as well as towers across the country from the Tata group firm. (ET)
Whirlpool plans to invest Rs3bn in India over 3 years. (ET)
India's foreign exchange reserves fell to US$271bn as on August 7, from US$272bn a week earlier.(BL)
The Road Transport and Highways Ministry is set to award 58 projects worth Rs190bn for building over 7,000 km roads in various states. (BS)
Centre is mulling granting sugarcane growers a bonus over and above its already announced statutory minimum price of Rs1,078/tonne for the ensuing 2009-10 crushing season.(BL)
Oil companies hike ATF prices by 4.5%.(FE)
RBI sees more pressure on food prices as drought looms.(BL)
Private oil field companies may have to detail capex spend to CAG.(BL)
Government moots higher FDI for FM radio, DTH.(DNA)
State government lines up Rs750bn of investment to boost power generation in Maharashtra alone. (ET)
Rains not so kind!
Earth is here so kind, that just tickle her with a hoe and she laughs with a harvest.
The earth has nothing much to laugh about, with the monsoon refusing to pour down in abundance. It’s just another Monday morning as we expect a weak opening for our markets. Concerns about drought and its adverse fallout on the economic recovery will weigh on the sentiment. Food prices, which are already soaring, could gain further due to shortfall in farm output. Whether the Centre will announce fresh freebies and goodies remains to be seen amid an already precarious fiscal situation.
After Germany and France, government data shows that Japan too pulled out of the recession in the April-June quarter. However, most Asian markets are down 1-2%. Wall Street and Europe too ended down on Friday.
Technically speaking, the Nifty is likely to remain in a broad range of 4300-4700. We are in for a major tug-of-war among the bulls and the bears in the near term.
Investors are looking for clearer and concrete signs of an economic recovery. A 10-15% correction should not surprise anyone. The fear of missing out on another round of rally could arrest any major sell-off. On the whole, the market is likely to be sideways and uncertain. Volatility is a given and one should also keep an eye on traded volume, aside from of course the fund flows.
FIIs were net sellers at Rs1.26bn in the cash segment on Friday on a provisional basis while the local funds pumped in Rs4.44bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs837.8mn.
US stocks slipped on Friday but managed to claw their way back a bit by the close, after a weaker-than-expected consumer sentiment report raised worries about the strength of any economic recovery.
The Dow Jones Industrial Average lost 77 points, or 0.8%, to 9,321.40. The S&P 500 index fell 8 points, or 0.9%, to 1,004.09. The Nasdaq Composite index lost 24 points, or 1.2%, to 1,985.52.
The decline was broad based, but a few sectors recovered from the day's lows. Some 24 of the Dow's 30 components fell.
US stocks started off on a weak note, as investors shrugged off positive reports on consumer inflation and factory production. But the selloff gathered momentum following the release of the consumer sentiment index. By the close, stocks had trimmed some of those losses.
The University of Michigan's consumer sentiment index dipped to 63.2 in August from 66 in late July. Economists thought it would rise to 69. The state of US consumers remains a worldwide concern, notwithstanding recent signs that the recession is winding down.
The report shows that American consumers are still not confident enough to resume their spending spree with lower incomes and erosion in wealth. This is going to be a cause for worry for a while before there is a substantial improvement in this critical part of the US economy.
Friday's losses came after the key US indices had made new highs for the year. Stocks ended lower for the week after a four-week advance, as a more optimistic view from the Federal Reserve could not offset weaker retail sales, and a disappointing but consumer sentiment report.
Between hitting a bottom on March 9 and Thursday's close, the S&P 500 rose 50%.
In the day's other economic data, industrial production rose 0.5% in July after falling 0.4% in the previous month. It was the first rise in nine months and could indicate that manufacturing is bottoming. Economists had forecast a gain of 0.4%. Capacity utilization rose to 68.5% from 68.1% in June. Economists had predicted a rise to 68.3%.
The Consumer Price Index (CPI), a measure of consumer inflation, was unchanged in July, as expected. CPI rose 0.7% in June. The so-called core CPI, which strips out volatile food and energy prices, rose 0.1%, as expected. Core CPI rose 0.2% in June.
Colonial BancGroup may have found a buyer for part or all of its assets in BB&T Corp., according to reports. Late on Thursday, a judge ruled in favor of Bank of America in a suit looking to bar Colonial, which is on the verge of collapse, from transferring or liquidating $1 billion in assets.
Shares of Colonial BancGroup, a Southern regional bank, slumped 12% before being halted. BB&T shares gained 9.4%. BofA shares rose 2.3%.
Abercrombie & Fitch reported a fiscal second-quarter loss versus a year-ago profit due to weak sales, higher costs and more markdowns. The loss was steeper than expected. The teen clothing retailer also reported weaker revenue that topped estimates. Shares gained 3.5% Friday.
JC Penney reported a smaller-than-expected quarterly loss, but also issued a current-year forecast that is lower than expectations. Shares fell 6.1%.
Market breadth was negative. Losers surpassed winners by seven to three on the New York Stock Exchange and by three to one on the Nasdaq.
Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.56% from 3.60% on Thursday. The government auctioned $75 billion in debt this week as part of its efforts to reduce the deficit and fuel its recovery efforts.
US light crude oil for September delivery fell $3.01 to settle at $67.51 a barrel on the New York Mercantile Exchange.
COMEX gold for December delivery fell $7.80 to settle at $948.70 an ounce.
In currency trading, the dollar gained versus the euro and rose against the Japanese yen.
Economic reports are due this week on housing, unemployment and manufacturing. A handful of retailers are due to report results, including rivals Lowe's and Home Depot and also Target. Computer maker Hewlett-Packard is also set to release results. Both Home Depot and Hewlett Packard are Dow components.
With 91% of the S&P 500 results having been released, second-quarter profits are expected to have fallen 28% versus a year ago, according to the latest figures from earnings tracker Thomson Reuters. Reports have largely been better than expected.
But results have been driven by cost-cutting, and many companies have reported lower revenue. Looking out, the third quarter is expected to show continued weakness, with Thomson estimates showing a decline of around 20% versus the previous year.
European shares closed lower on Friday, with automakers like Volkswagen pacing the decline. The pan-European Dow Jones Stoxx 600 index shed 0.8% to 228.67. Germany's DAX index was down 1.7% to 5,309.11, while the French CAC-40 index dropped 0.8% to 3,495.27 and the UK's FTSE 100 index lost 0.9% to 4,713.97.
The BSE Sensex slipped 107 points or 0.7% at 15,412 after touching a high of 15,535 and a low of 15,367. The index opened at 15,530 against the previous close of 15,518. The NSE Nifty slipped by 25 points to shut shop at 4,580
In Asia, the Nikkei in Japan gained by 0.8% at 10,597 while Australia's S&P/ASX gained 0.6% at 4,461. The Hang Seng index in Hong Kong gained 0.2% at 20,893. Shanghai index in China slipped 3% at 3,046.
In Europe, stocks were trading in the green. The FTSE in the UK was up 0.2%. The DAX in Germany was up 0.2% and the CAC 40 index in France was up 0.3%.
Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, losing 2%, followed by the FMCG index that was down 1.3%. The BSE Teck index down 1.3% and the BSE Auto index was down 1.2%.
Among the major gainers were, BSE Oil & Gas index up 1.5% and BSE Consumer Durables index up 0.9%
The BSE Mid-Cap index slipped by 0.3% and the BSE Small-Cap index edged higher by 0.3%.
Within the Sensex, the major losers were JP Associates, HUL, ACC, RCOM, NTPC, HDFC and Maruti. Among the major gainers were, ONGC, Reliance Infra and Reliance Industries.
Outside the frontline indices, the big losers in the broader market were Balrampur Chini, Renuka Sugar, HCL Tech, Akcruti, PFC and Gujarat NRE. On the other hand, gainers included United Phosphorous, Jet Airways, Gujarat Petronet, Bhushan Steel and EKC.
The top gainers: The top gainers in the Sensex were Ranbaxy Labs (up 13.8%), Tata Motors (up 12.7%), DLF (up 7.7%), ONGC (up 7.1%) and Hindalco (up 6.9%).
The Top Losers: The top losers in the Sensex were Hindustan Unilever (down 4.7%), ACC (down 4.5%), Ambuja Cements (down 4.2%), Grasim Industries (down 3.2%) and NTPC (down 3%).
The BSE IT Index (up 1.5%): The top gainers in the IT sector were Sasken Communication (up 20.8%), Patni Computer (up 13.4%), Oracle Financial (up 3.9%), TCS (up 2%) and Wipro (up 2.3%).
Mphasis shot up by over 10% during the week. The company signed definitive agreement to acquire AIG Systems Solutions Ltd; part of American International Group Inc. AIGSS is an India-based provider of information technology services and solutions to AIG companies worldwide.
HCL Tech surged over 10% during the week. CRISIL assigned an 'AA+ /stable' rating to the Rs5bn Non-convertible Debentures programme of HCL Technologies.
Financial Tech lost 5.2% during the week.
The BSE Consumer Index: The top gainers in consumer durables space were Su-Raj Diamonds (up 7.8%), Titan (up 4.9%), Samtel Color (up 2.3%) and Whirlpool (up 2%).
Blue Star was the top loser in the consumer durables index during the week. The stock fell 4.4%
Asian stocks open in red
Asian stocks dropped after an unexpected decline in a US consumer confidence index raised concern about the strength of a revival in global growth.
Sony Corp sank more than 3.5%. Nissan Motor lost almost 2.5% in Tokyo.
Japanese benchmark index Nikkei 225 fell 235.39 points, or 2.22%, to trade at 10,361.94.
Hong Kong`s Hang Seng index declined 426.03 points, or 2.04%, to trade at 20,467.30.
China`s Shanghai Composite decreased 36.38 points, or 1.19% to trade at 3,010.59.
Taiwan`s Taiex index gained dropped 104.93 points, or 1.48%, to trade at 6,964.58.
South Korea`s Kospi index lost 18.18 points, or 1.14%, to trade at 1,573.23.
Singapore`s Straits Times sank 53.66 points, or 2.04%, to trade at 2,577.85. (7.42 a.m., IST)
Fresenius Kabi Oncology
We recommend a buy in the stock of Fresenius Kabi Oncology (earlier Dabur Pharma) from a short-term perspective. It is evident from the charts of the stock that the share has been on an intermediate-term uptrend from its October 2008 low of Rs 28. Since then, it has been forming higher peaks and higher troughs. However, following a medium-term correction from Rs 59 to Rs 42 (from early June to late July), the stock took support around Rs 42 and resumed its uptrend. Since this low, the stock has been on a medium-term uptrend too. It is trading way above its 21- and 50-day moving averages. On August 13, the stock conclusively broke through the key resistance at Rs 59 by gaining 7 per cent with high volume. The daily as well as weekly relative strength indices are featuring in the bullish zone. Our short-term outlook on the stock is bullish. We anticipate the stock’s uptrend to prolong until it knocks our price target of Rs 73. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 63.
via BL
Proposed Income Tax 2009 - Table
| PROPOSED SLABS | ||
| Income (Rs) | Existing | Proposed Tax |
| MALE | ||
| Up to 1,60,000 | Nil | Nil |
| 1,60,001 -3,00,000 | 10 | 10% of the amount by which the total income exceeds Rs 1,60,000 |
| 3,00,001-5,00,000 | 20 | 10% of the amount by which the total income exceeds Rs 1,60,000 |
| 5,00,001-10,00,000 | 30 | 10% of the amount by which the total income exceeds Rs 1,60,000 |
| 10,00,001-25,00,000 | 30 | Rs 84,000 plus 20% of the amount by which the total income exceeds Rs 10,00,000 |
| Above 25,00,000 | 30 | Rs 3,84,000 plus 30% of the amount by which the total income exceeds Rs 25,00,000 |
| FEMALE | ||
| Up to 1,90,000 | Nil | Nil |
| 1,90,001 - 3,00,000 | 10 | 10% of the amount by which the total income exceeds Rs 1,90,000 |
| 3,00,001-5,00,000 | 20 | 10% of the amount by which the total income exceeds Rs 1,90,000 |
| 5,00,001-10,00,000 | 30 | 10% of the amount by which the total income exceeds Rs 1,90,000 |
| 10,00,001-25,00,000 | 30 | Rs 81,000 plus 20% of the amount by which the total income exceeds Rs 10,00,000 |
| Above 25,00,000 | 30 | Rs 381,000 plus 30% of the amount by which the total income exceeds Rs 25,00,000 |
| SENIOR CITIZEN | ||
| Up to 2,40,000 | Nil | Nil |
| 2,40,001 - 3,00,000 | 10 | 10% of the amount by which the total income exceeds Rs 2,40,000 |
| 3,00,001-5,00,000 | 20 | 10% of the amount by which the total income exceeds Rs 2,40,000 |
| 5,00,001-10,00,000 | 30 | 10% of the amount by which the total income exceeds Rs 2,40,000 |
| 10,00,001-25,00,000 | 30 | Rs 76,000 plus 20% of the amount by which the total income exceeds Rs 10,00,000 |
| Above 25,00,000 | 30 | Rs 3,76,000 plus 30% of the amount by which the total income exceeds Rs 25,00,000 |
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