Market Review - Aug 19 2009
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Wednesday, August 19, 2009
Wednesday woes continues to whack Asian Markets
Doubt over global economic recovery triggers slump at Shanghai, Sensex, Hang Seng
Stock markets in Asian region slump on Wednesday, 19 August 2009, following the growing fears that global investors
are pulling the plug on a six-month rally amid doubts about a global economic recovery. Shanghai stocks tumbled to a two-month low on disappointment that authorities were not taking steps to support the market amid increasingly heavy losses while other regional stocks followed it.
On Wall Street, stocks witnessed a warmed back up on Tuesday after eyeing better-than-expected earnings reports and a silver lining in mixed economic data. The Dow Jones Industrial Average gained 82.07 points, or 0.9%, to 9217.41, while the S&P 500 tacked on 9.94 points, or 1%, to 989.67. The Nasdaq Composite edged up 25.08 points, or 1.3%, to 1955.92.
In the commodity market, crude oil traded little changed below $70 a barrel in New York after gaining as an industry-funded report showed a drop in crude inventories in the U.S., the world’s biggest energy consumer.
Crude oil for September delivery was trading down 3 cents at $69.16 a barrel on the New York Mercantile Exchange at 1:49 p.m. in Singapore. Earlier it rose as much as $1.31, or 1.9%, to $70.50 a barrel. Yesterday, it gained $2.44, or 3.7%, to settle at $69.19.
Brent crude oil for October settlement fell 44 cents to $71.93 a barrel on London’s ICE Futures Europe Exchange at 1:53 p.m. Singapore time. Earlier it rose as much as $1.14, or 1.6%, to $73.51 a barrel. The contract yesterday jumped $1.83, or 2.6%, to end the session at $72.37 a barrel.
Gold climbed for a second day as the dollar weakened on signs that the global recession is abating, reviving investors’ appetite for higher-yielding assets. Gold for immediate delivery, which tends to move inversely to the dollar, rose as much as 0.4% to $942.40 an ounce, and traded at $941.40 an ounce at 8:41 a.m. in Singapore.
In the currency market, US dollar and yen were logically boosted up on safe haven flow. The dollar and yen got a lift, as another sell-off in Chinese share markets sent risk-wary investors into the perceived safety of lower-yielding currencies.
The Japanese yen strengthened against greenback and euro as investors started buying Japan’s currency to take advantage of favorable exchange rates. The Japanese yen was quoted at 94.32 per greenback, while 133.06 per euro on Wednesday.
The Hong Kong dollar was trading at HK$ 7.7516 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 lost ground after a late fall in Chinese stocks got some investors worrying about the economic health of one of Australia's top export markets. The dollar retreated to close locally at $US0.8208, from the day's high of $0.8307, and compared to yesterday's close of $US0.8264.
In Wellington trade, the New Zealand dollar was mixed today, but generally recovered from recent lows as gains in stock markets worldwide-eroded safe-haven demand for the greenback and yen. The NZ dollar was buying US 67.57 cents at 5pm today from US 66.96 cents at the same time yesterday.
The South Korean won ended at 1,255.8 won to the U.S. dollar, down 9.5 won from Tuesday's close as foreigners shunned emerging currencies due to murky recovery predictions.
The Taiwan dollar weakened against the greenback. The Taiwan dollar fell against the US dollar as it was trading lower at NT$ 33.0100, down by NT$ 0.0460 from Tuesday’s close of NT$32.9640.
Coming back in equities, most of the Asian indices tanked dipper following the Shanghai slump that fed jitters over a potential deep correction.
In Japan, the shares market finished the session lower after trading most of the time in and out of boundary line, weighed down by major banks and real estate developers as investors sentiment remain fragile on the recovery’s strength and the mood was soured after the Shanghai market expanded losses. Insurance shares dived after regulators released new guidelines. Shipping companies turned lower after a gauge of transport fees fell overnight. At the closing bell, the Nikkei 225 Stock Average index slid 80.96 points, or 0.79% to 10,204, meanwhile the broader Topix index edged down 6.41 points, or 0.67% to 943.25.
In Mainland China, share market extended looses throughout the session on broad based sell off across the sector, as sentiment remained fragile after recent market losses. Materials, energy, and industrials dragged down the market as investors were prone to slashing their bets on riskier assets amid worries about declining international commodity prices and the strength of economic recovery after Shanghai bourse fell 19% in the last two weeks. Fears about restricted bank lending and the economic outlook weighed down banks and properties shares. Shipping companies turned lower after a gauge of transport fees fell overnight.
At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, declined 125.30 points, or 4.3% to 2,785.58, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, fell 4.96%, or 157.42 points to 3,014.57.
In Hong Kong, benchmark index plummeted to one month closing low as market participants sentiment remained fragile after recent market losses and the mood was further soured after the Shanghai market expanded losses second times in this week. Investors were disappointed after the mainland authorities did not take steps to support the sliding share market. The Hang Seng Index retracted 352.04 points, or 1.73%, to 19,954.23, while the Hang Seng China Enterprise retreated 187.19 points, or 1.64%, to 11,260.83.
On the economic front, according to the Census and Statistics Department, Hong Kong’s seasonally adjusted unemployment rate was steady at 5.4% in the three months to July 2009.
In Australia, the stock market finished the session in mixed terrain despite spending much of the day in positive territory. Materials and resources tumbled as investors were prone to slashing their bets on riskier assets. Heavy profit booking witnessed among top four banks and miners offset gains from industrials, energy, and consumer discretionary shares.
At the closing bell, the benchmark S&P/ASX200 index slid 7.80 points, or 0.18%, to 4,373.8, meanwhile the broader All Ordinaries rose 1.6 points, or 0.04%, to 4,387.5.
On the economic front, the latest report from Westpac Bank and Melbourne Institute revealed that Australia’s leading index of economy activity contracted at an annualized rate of 3.3% in June compared to a fall of 5.3% in May. The leading index rose 1.8 index points to 247.9 points in June, meanwhile the coincident index declined at an annualized rate of 0.7% in June.
In New Zealand, stock market bucked the regional trend by ending the day in positive region. The New Zealand share market started the day in positive territory after US stocks rose overnight. Asian stock markets were mixed as a positive boost from gains for U.S. stocks was somewhat overshadowed by the uncertain outlook. The NZX50 was up 0.31% or 9.46 points to 3081.05. The NZX 15 moved forward 0.55% or 30.77 points to close at 5673.44.
On the economic front, New Zealand’s producers’ output prices fell 0.7% in the June 2009 quarter, while input prices remained unchanged, Statistics New Zealand said on Wednesday. In the year to the June 2009 quarter, the PPI outputs index rose 2.1% while the PPI inputs index fell 1.2%. This is the first annual fall in the PPI inputs index since a fall of 0.3% in the year to the March 2004 quarter.
Meanwhile, New Zealand’s capital goods price index (CGPI) rose 0.3% in the June 2009 quarter. The CGPI rose 4.1% in the year to the June 2009 quarter, compared with rises of 3.1% in the year to the June 2008 quarter and 2.8% in the year to the June 2007 quarter.
In South Korea, stocks closed lower as falling Asian shares fed jitters over a potential deep correction. In volatile trading, the benchmark Korea Composite Stock Price Index (KOSPI) declined 4.28 points to end at 1,545.96.
In Singapore, the stock market tumbled with broad based sell off across the sector as investors sentiment remained fragile about the strength of economic recovery and the mood was further soured after the Shanghai market expanded losses second times in this week. Banks, properties and manufacturing shares lead the decliners, as investors were prone to slashing their assets amid volatility in the global markets. The blue chip Straits Times Index slipped 44.94 points, or 1.75%, to 2,522.78.
In Taiwan, stock market struggled to keep gains as it finished the session slightly lower as worries over political uncertainty offset gains in contract notebook PC makers on expectations of new orders. The benchmark Taiex share index continued losing for the third session as it ended the session slightly lower by 1.19 points or 0.02% in a day, closing the day at 6788.58, lowest closing since 16 July 2009 when market closed the day at 6780.30
In Philippines, the stock market overturned its three days losses, closing higher, due to bargain hunting following a three-day downturn. Moreover, overnight recovery of Wall Street also acted as a helping hand or the Philippines equity to scale up. At the final bell, the benchmark index PSEi mounted 1.07% or 29.34 points to 2,760.89, while the All Shares index climbed 1.07% or 18.79 points to 1,765.63.
In India, key benchmark indices edged lower in choppy trade as world stocks fell led by a sharp slide in Chinese stocks. The BSE 30-share Sensex was down 225.62 points or 1.50% at 14,809.64. The S&P CNX Nifty was down 64.80 points or 1.45% to 4,394.10.
Elsewhere, Malaysia's Kula Lumpur Composite index went down 0.8% or 8.88 points to 1155.53 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2277.75.
In other regional market, European shares fell down for the second time this week, as investors moved to lock in profits, particularly in the mining and banking sectors. On a regional level, the U.K. FTSE 100 index declined 0.8% to 4,649.94, the German DAX index fell 1.3% to 5,183.77 and the French CAC-40 index declined 0.8% to 3,421.61.
Turnover surges
Nifty August 2009 futures at premium
Nifty August 2009 futures were at 4402 at a premium of 7.90 points as compared to the spot closing of 4394.10. Turnover in NSE's futures & options (F&O) segment surged to Rs 82,896.50 crore from Rs 73,655.74 crore on Tuesday, 18 August 2009.
Tata Steel August 2009 futures were at discount at 433 compared to the spot closing of 433.75.
IFCI August 2009 futures were near spot price at 51.80 compared to the spot closing of 51.85.
Suzlon Energy August 2009 futures were near sport price at 84.60 compared to the spot closing of 84.90.
In the cash market, the S&P CNX Nifty lost 64.80 points or 1.45% at 4394.10.
BSE Bulk Deals to Watch - Aug 19 2009
Date Scrip Code Company Client Name Deal Type * Quantity Price **
19/8/2009 533029 ALKALI OPG SECURITIES P LTD B 159168 286.01
19/8/2009 533029 ALKALI OPG SECURITIES P LTD S 159168 286.26
19/8/2009 512149 AVANCE TECHN AMIT PANNALAL GULECHA B 700000 2.25
19/8/2009 512149 AVANCE TECHN BHARATKUMAR VIMALCHAND RANKA B 300000 2.20
19/8/2009 512149 AVANCE TECHN SHAH ASHOK B 350000 2.24
19/8/2009 512149 AVANCE TECHN JAYESH MANUBHAI SUTHAR B 525000 2.24
19/8/2009 512149 AVANCE TECHN RATHOD MANOJ CHHAGANLAL HUF S 400000 2.24
19/8/2009 512149 AVANCE TECHN JIGNESH C SHAH S 400000 2.21
19/8/2009 512149 AVANCE TECHN CHANDRAKANT B SHAH S 375230 2.24
19/8/2009 512149 AVANCE TECHN VIPUL B GONDALIYA S 484450 2.25
19/8/2009 512149 AVANCE TECHN JASMIN S BAJORIYA S 516550 2.25
19/8/2009 512149 AVANCE TECHN VICKY RAJESHBHAI JHAVERI S 350000 2.24
19/8/2009 532609 BHARATI SHIP JMP SECURITIES PVT LTD B 145762 178.79
19/8/2009 511628 BRESCON CORP ALOK FINANCE PVT. LTD. B 100000 77.25
19/8/2009 511628 BRESCON CORP RELIANCE TAX SAVER ELSS FUND S 100000 77.25
19/8/2009 531682 CAT TECHNOL S V ENTERPRISES B 195140 6.23
19/8/2009 531682 CAT TECHNOL S V ENTERPRISES S 171140 6.24
19/8/2009 531270 DAZZEL CONFI DHIRENDER KUMAR SURANA B 50000 3.40
19/8/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD B 24300 8.03
19/8/2009 517973 DMC INTER SHIVCHARAN DASS MITTAL B 20500 7.50
19/8/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD S 25200 7.52
19/8/2009 517973 DMC INTER SHIVCHARAN DASS MITTAL S 20500 8.04
19/8/2009 533090 EXCEL INFO LOTUS GLOBAL INVESTMENTS LTD S 113000 101.02
19/8/2009 532022 FILAT FASH RAJESH RAMCHANDRA GUPTA B 51000 80.79
19/8/2009 532022 FILAT FASH FURIYA BHAVYA MANILAL S 51050 80.79
19/8/2009 531486 FILMCIT MEDI WELLNESS COMMUNICATION (P) LTD S 2500000 1.08
19/8/2009 531387 HASTI FINANC K GUNASEKARAN B 13123 21.63
19/8/2009 506522 J L MORISO I HITESH SHASHIKANT JHAVERI B 8826 268.48
19/8/2009 506522 J L MORISO I JAIDEEP HALWASIYA S 11000 269.80
19/8/2009 523467 JAI MATA GLA HITESH SHASHIKANT JHAVERI B 19292 12.70
19/8/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 46000 12.70
19/8/2009 523467 JAI MATA GLA HITESH SHASHIKANT JHAVERI S 19288 12.70
19/8/2009 516078 JUMBO BAG LT MAHESHKUMAR KIRTILAL SHAH B 35471 40.43
19/8/2009 516078 JUMBO BAG LT HITESH SHASHIKANT JHAVERI S 57367 40.44
19/8/2009 513509 KALYANI FORG AMRUT STEEL P.LTD. B 25000 122.95
19/8/2009 513509 KALYANI FORG B.K.KHULLAR & CO. S 25000 122.95
19/8/2009 532408 MEGASOFT LTD JMP SECURITIES PVT LTD B 676623 31.41
19/8/2009 532408 MEGASOFT LTD JMP SECURITIES PVT LTD S 630209 31.50
19/8/2009 532494 MICRO TECHN PR VYAPAAR PRIVATE LIMITED S 69788 133.63
19/8/2009 532724 MOUNT TRAD MUKUND MOTOR PARTS PVT LTD B 6898 414.04
19/8/2009 523670 NOIDA MEDI C DHEERAJ KUMAR B 102737 12.01
19/8/2009 523670 NOIDA MEDI C JAY K PANDYA S 124637 12.00
19/8/2009 533093 RAJ OIL TRANSGLOBAL SECURITIES LTD. B 184514 95.69
19/8/2009 533093 RAJ OIL ASHOKA FINSTOCK LTD B 411473 96.48
19/8/2009 533093 RAJ OIL TRANSGLOBAL SECURITIES LTD. S 184515 95.96
19/8/2009 533093 RAJ OIL ASHOKA FINSTOCK LTD S 411473 96.12
19/8/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PVT LTD B 68850 48.55
19/8/2009 531952 RIBA TEXTILE PATEL SHAILESH SOMABHAI S 56500 48.68
19/8/2009 531374 SAAG RR INFR HITESH SHASHIKANT JHAVERI B 77780 23.00
19/8/2009 531374 SAAG RR INFR Naman Securities & Finance Pvt. Ltd. B 90639 23.00
19/8/2009 531374 SAAG RR INFR HITESH SHASHIKANT JHAVERI S 77780 23.00
19/8/2009 531374 SAAG RR INFR Naman Securities & Finance Pvt. Ltd. S 90638 22.48
19/8/2009 531374 SAAG RR INFR SAAG MAURITIUS LTD S 150000 20.92
19/8/2009 532663 SASKEN COMM MATRIX EQUITRADE PVT. LTD. B 179699 177.88
19/8/2009 532663 SASKEN COMM OPG SECURITIES P LTD B 600084 177.27
19/8/2009 532663 SASKEN COMM A.A.DOSHI SHARE & STOCK BROKERS LTD B 160434 178.52
19/8/2009 532663 SASKEN COMM MATRIX EQUITRADE PVT. LTD. S 179699 178.07
19/8/2009 532663 SASKEN COMM OPG SECURITIES P LTD S 600084 177.39
19/8/2009 532663 SASKEN COMM A.A.DOSHI SHARE & STOCK BROKERS LTD S 160434 179.01
19/8/2009 524540 SECUN HEALTH ANJU DHARMENDRA MADHANI B 50000 24.25
19/8/2009 524540 SECUN HEALTH VENKATA SRIHARI TADIMALLA S 33400 24.25
19/8/2009 512048 SPLASH MEDIA RAJENDRAKUMAR AGARWAL HUF S 7500 127.33
19/8/2009 512048 SPLASH MEDIA KATWA KANCHAN MALAT S 15000 126.57
19/8/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 68216 57.65
19/8/2009 506808 TUTI CORIN ASHARI AGENCIES LTD B 241000 5.98
19/8/2009 506808 TUTI CORIN AMRUT STEEL P.LTD. S 241041 5.98
NSE Bulk Deals to Watch Aug 19 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
19-AUG-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,235593,1125.79,-
19-AUG-2009,ALKALI,Alkali Metals Limited,MANISH KUMAR GILADA,BUY,20500,277.02,-
19-AUG-2009,ALKALI,Alkali Metals Limited,OM INVESTMENTS,BUY,68357,283.81,-
19-AUG-2009,ALKALI,Alkali Metals Limited,PATEL KIRITKUMAR MOHANLAL,BUY,97989,284.91,-
19-AUG-2009,EDSERV,Edserv Softsystems Limite,BHAVIN Y MEHTA,BUY,88613,79.66,-
19-AUG-2009,FSL,Firstsource Solutions Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,2209686,33.55,-
19-AUG-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,5231519,51.45,-
19-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,7545429,21.66,-
19-AUG-2009,MRO-TEK,MRO-TEK Limited,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,104138,32.43,-
19-AUG-2009,NUCLEUS,Nucleus Software Exports,ASIT C MEHTA FOREX PRIVATE LTD,BUY,177102,119.54,-
19-AUG-2009,RAJOIL,Raj Oil Mills Limited,ASHOKA FINSTOCK LTD,BUY,248813,96.35,-
19-AUG-2009,SASKEN,Sasken Commu Techno Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,177407,178.42,-
19-AUG-2009,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,BUY,233848,174.71,-
19-AUG-2009,SASKEN,Sasken Commu Techno Ltd,OM INVESTMENTS,BUY,406134,176.36,-
19-AUG-2009,SASKEN,Sasken Commu Techno Ltd,SUNEET LAL,BUY,158636,174.16,-
19-AUG-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,235593,1126.35,-
19-AUG-2009,ALKALI,Alkali Metals Limited,MANISH KUMAR GILADA,SELL,91000,284.67,-
19-AUG-2009,ALKALI,Alkali Metals Limited,OM INVESTMENTS,SELL,68357,284.28,-
19-AUG-2009,ALKALI,Alkali Metals Limited,PATEL KIRITKUMAR MOHANLAL,SELL,89982,283.68,-
19-AUG-2009,EDSERV,Edserv Softsystems Limite,BHAVIN Y MEHTA,SELL,88613,79.75,-
19-AUG-2009,EXCELINFO,Excel Infoways Limited,LOTUS GLOBAL INVESTMENTS LTD,SELL,113000,101.00,-
19-AUG-2009,FSL,Firstsource Solutions Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,2352186,33.71,-
19-AUG-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,5239399,51.56,-
19-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,7555388,21.70,-
19-AUG-2009,KOPRAN,Kopran Ltd.,AXIS BANK LIMITED AXIS BANK,SELL,248000,14.04,-
19-AUG-2009,MRO-TEK,MRO-TEK Limited,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,95138,32.43,-
19-AUG-2009,NUCLEUS,Nucleus Software Exports,ASIT C MEHTA FOREX PRIVATE LTD,SELL,177102,119.28,-
19-AUG-2009,RAJOIL,Raj Oil Mills Limited,ASHOKA FINSTOCK LTD,SELL,248813,96.42,-
19-AUG-2009,SASKEN,Sasken Commu Techno Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,179407,178.45,-
19-AUG-2009,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,SELL,233848,174.84,-
19-AUG-2009,SASKEN,Sasken Commu Techno Ltd,OM INVESTMENTS,SELL,406134,176.49,-
19-AUG-2009,SASKEN,Sasken Commu Techno Ltd,SUNEET LAL,SELL,158636,174.02,-
Post Session Commentary - Aug 19 2009
Domestic market lost its opening strength and extended its losses towards the closing to end the session with losses backed by significant selling pressure. Weak Asian markets along with negative European stocks took huge strike on the bourses. Lower US index futures also weighed on sentiments. Investors were worried regarding the weak monsoon rain that is putting pressure on food prices and energy supplies. However, market pared some losses during last trading hours on a little buying in key stocks. Meanwhile, foreign direct investment in India stood at $2.58 billion in June, with rise of 8% as compared with the same month last year. The BSE Sensex ended below 14,850 level and NSE Nifty closed below 4,400 mark.
Market opened slightly higher tracking positive cues from the US markets. On Tuesday, the US stocks markets rebounded from previous session’s sharp fall to close higher as buyers picked up stocks at low prices to give a good start for the markets. The rally was directed by financial, retail and technology as stocks posted gains over the ground. However, Indian stocks suddenly turned choppy backed by lower Asian markets. Further, benchmark indices continued to trade with losses on profit booking pressure at higher level. The selling pressure was mainly led by more than 4% fall in the Chinese markets. During final trading hours, market managed to reduce losses a bit but was still in negative territory. From the sectoral front, all indices ended in red. Besides, Oil & Gas, Metal, Auto, Power, PSU, Realty, Power and Teck stocks contributed to most of the selling pressure. Broader markets also remained out of favour as BSE Midcap and Smallcap stocks closed with losses.
Among the Sensex pack 27 stocks ended in red territory and 3 stocks ended in green territory. The market breadth indicating the overall health of the market remained negative as 1490 stocks closed in green while 1134 stocks closed in red and 89 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 225.62 points or (1.50%) at 14,809.64 and NSE Nifty ended down by 64.80 points or (1.45%) at 4,394.10. BSE Mid Caps and Small Caps closed with losses of 62.49 and 33.06 points at 5,434.06 and 6,308.69 respectively. The BSE Sensex touched intraday high of 15,096.94 and intraday low of 14,684.45.
Losers from the BSE Sensex pack are ACC Ltd (5.08%), Reliance Infra (4.86%), RCom (4.38%), Grasim Industries (4.20%), Tata Steel (3.93%), M&M Ltd (3.58%), Reliance (3.23%), Hindalco (3.20%), JP Associates (2.80%), SBI (2.46%), Herohonda Motors (2.27%), Tata Motors (2.27%), TCS Ltd (2.11%), ONGC Ltd (1.99%), NTPC Ltd (1.90%), Bharti Airtel (1.44%) and Wipro Ltd (1.43%).
Gainers from the BSE Sensex pack are HDFC (1.56%), HDFC Bank (0.44%) and L&T Ltd (0.22%).
Foreign direct investment (FDI ) in India stood at $2.58 billion in June, with rise of 8 per cent as compared with the same month last year, a senior official said. In June 2008, the FDI inflow was $2.39 billion.
On the global markets front the Asian markets that opened before the Indian market, ended with losses with financial and airline stocks weighed on the markets. Shanghai Composite, Hang Seng, Nikkei 225, Singapore''s Straits Times Index and Seoul Composite closed lower by 125.30, 352.04, 80.96, 44.94 and 4.28 points at 2,785.58, 19,954.23, 10,204, 2,522.78 and 1,545.96 respectively.
European markets, which opened after the Indian market, are trading in red, as equities had slid across Asia. In Frankfurt the DAX index is trading lower 68.69 points at 5,182.05 and in London FTSE 100 is trading down by 39.96 points at 4,645.82.
The BSE Oil & Gas index dropped by (2.68%) or 254.71 points at 9,259.60 despite crude oil gained for the first time in three days overnight. Losers are Essar Oil Ltd (4.60%), Reliance (3.23%), RNRL (3.19%), Reliance Petroleum (2.66%) and Gail India (2.31%).
The BSE Metal index closed tumbled (2.33%) or 284.33 points at 11,929.02. Losers are Gujarat NRE C (3.98%), Tata Steel (3.93%), Sesa Goa Ltd (3.30%), Hindalco (3.20%) and JSW Steel (2.98%).
The BSE Auto index lost (2.14%) or 115.48 points at 5,277.76 on worries arising from scanty rains as auto firms derive larger revenue from rural India. Main losers are Bharat Forge (5.59%), Ashok Leyland (3.63%), M&M Ltd (3.58%), Bajaj Auto (3.52%) and Cummins Indi (3.25%).
The BSE Power index tumbled (1.93%) or 55.49 points at 2,812.57 as Reliance Infra (4.86%), Suzlon Energy (3.90%), GMR Infra (3.10%), Siemens Ltd (2.81%) and Crompton Greaves (2.75%) ended in red.
The BSE PSU index closed lower by (1.88%) or 153.87 points at 8,048.22. Losers are Rashtriya Chem & Fert (4.07%), Canara Bank (3.50%), Corporation (3.41%), MRPL (3.30%) and Power Financ (3.08%).
The BSE Realty index ended down by (1.86%) or 69.63 points at 3,680.77 on profit taking. Losers are Unitech Ltd (3.28%), Orbit Co (3.03%), Housing Dev (2.76%), Penland Ltd (2.68%) and Anant Raj (2.42%).
DLF Ltd lost 1.08%. The company is set to bag India''s largest land deal in Gurgaon, Haryana as DLF has emerged as the sole bidder for the 350.71-acre land parcel in Gurgaon put up for auction by a Haryana state corporation. The state corporation has fixed the minimum reserve price as Rs 1,700 crore for the land.
Cairn India dropped by 1.88%. The company and state-owned ONGC will jointly invest $4 billion (Rs 20,000 crore) in an attempt to scale up the production capacity of their oil fields at Barmer in Rajasthan by 25,000 barrels of oil per day (bopd) to two lakh bopd.
Glenmark Pharma tumbled 14.68%. Glenmark Pharmaceuticals S.A. (Switzerland), a subsidiary of the company and Forest Laboratories, Inc announced top-line results from a Phase lib dose range finding study of Oglemilast in patients with Chronic Obstructive Pulmonary Disease (COPD).
Gujarat Industries Power Company Ltd fell 0.46% despite a block deal of five lakh shares was executed on NSE at Rs. 100 per share.
Bharat Forge Ltd plunged 5.59% on profit booking after the stock rose 8.50% in the preceding trading session.
Dish TV surged 1.84% on back of plans to raise funds up to $200 million. As per reports, the company plans to raise $200 million (around Rs 1,000 crore) by way of equity issue in either domestic or international markets.
PSL Ltd ended up by 2.58%. The company has secured an order valued approximately Rs 500 crore from Gail (India) Limited for supplying quality API 5L X-80 grade PSL-2 Pipes for their Dahej-Vijaipur Pipe Line Upgradation Project (DVPL-II).
Market drifts lower on weak global stocks lower
Key benchmark indices edged lower in choppy trade as world stocks fell led by a sharp slide in Chinese stocks. Closer home, scanty rains, crucial for India's domestic demand driven economy, weighed on investor sentiment. Volatility in index heavyweight Reliance Industries (RIL) caused volatility in Sensex in the latter part of the trading session. Two other heavyweights L&T and ICICI Bank cut losses. HDFC rose. The BSE 30-share Sensex fell 225.62 points or 1.5%, off close to 285 points from the day's high and up close to 125 points from the day's low.
The barometer index BSE Sensex fell below the psychological 15,000 level. Metal, oil & gas and realty stocks led the decline.
As per provisional data, foreign funds today, 19 August 2009, offloaded stocks worth a net Rs 622.06 crore. Domestic funds bought shares worth a net Rs 83.77 crore
The market hovered in positive zone earlier in the day after moving between green and red at the onset of the trading session. A sustained fall was witnessed since 10:25 IST as most of Asian stocks moved into the red from green. An intraday recovery was witnessed in early afternoon trade. The market weakened again later as the intraday recovery proved short-lived. The market staged a strong rebound in mid-afternoon trade as index heavyweight Reliance Industries (RIL) & L&T recovered. But the intraday rebound in RIL could not be sustained with the stock weakening once again in late trade, weighing on the Sensex.
Weak monsoon rains have pushed India to the brink of drought, putting pressure on food prices and energy supplies and imperilling growth. Monsoon was 56% below normal in the 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.
Low rainfall has slowed the refilling of India's main reservoirs, threatening the supply of hydro-electric power which accounts for a quarter of India's generation and reducing availability of water to irrigate winter-sown crops such as wheat and rapeseed. Farm minister Sharad Pawar said on Monday that India needed to increase the planting of winter-sown crops and improve irrigation to make up for the damage to farms.
Finance Minister Pranab Mukherjee said on Tuesday he expected growth in 2009/10 to be over six percent, as forecast earlier and in line with a central bank estimate, despite the monsoon shortfall.
India's merchandise exports fell for the 10th straight month in July, but its balance-of-trade account improved as imports declined at a faster pace, Commerce Secretary Rahul Khullar said at a workshop on agricultural exports on Tuesday. The country's merchandise exports fell 26% from a year earlier in July as the economic crisis continued to hurt global demand, while the value of imports shrank 35%-36% he said.
European shares fell on Wednesday, after a sharp fall on China's stock market, and as doubts on global economic recovery persisted. The key benchmark indices in France, Germany and UK were down by between 0.36% to 0.63%.
Asian stocks fell, led by materials and finance companies, as China's fourth largest listed steelmaker, Maanshan Iron & Steel Company, reported a first-half loss and Japanese regulators said new guidelines will hurt insurers' solvency ratios. Key benchmark indices in Japan, Hong Kong, South Korea, Singapore and Taiwan were down by between 0.02% to 1.75%.
China's Shanghai Composite Index fell to a two-month low sliding 4.3% led by metal stocks, as the gauge approached levels signaling a so-called bear market.
Trading in the US index futures indicated the Dow could fall 67 points at the opening bell today, 19 August 2009.
US stocks made a broad-based rebound from the previous session's sharp decline, finishing near intra-day highs on Tuesday. The Dow gained 82.60 points, or 0.9%, to 9,217.94. The S&P 500 index gained 9.94 points, or 1%, to 989.67. The Nasdaq Composite Index added 25.08 points, or 1.3%, to 1,955.92.
The markets shrugged off some weak economic data. Housing starts dropped 1% in July 2009, well short of expectations after an upwardly-revised 6.5% jump in June 2008. Meanwhile, overall producer prices dropped by 0.9% last month, compared with a 1.8% gain in June. However, core prices made a surprise 0.1% decline, suggesting that inflationary pressures remain restricted.
Meanwhile, Hewlett-Packard reported better-than-expected quarterly earnings and revenue on Tuesday.
The BSE 30-share Sensex fell 225.62 points or 1.5% at 14,809.64. The Sensex rose 61.68 points at the day's high of 15,096.94 in early trade. At the day's low of 14,684.45, the Sensex fell 350.81 points in early afternoon trade.
The S&P CNX Nifty declined 64.80 points or 1.45% to 4,394.10. Nifty August 2009 futures were at 4402 at a premium of 7.90 points compared with the spot closing of 4394.10. Turnover in NSE's futures & options (F&O) segment rose to Rs 82896.50 crore from Rs 73,655.74 crore on Tuesday, 18 August 2009.
The market appears to be in a consolidation mode after a sharp and swift surge. From a recent high of 15518.49 on 13 August 2009, the Sensex has lost 708.85 points or 4.56% in the past four trading sessions. From a 14-month closing high of 15,924.23 on 3 August 2009, the Sensex has lost 1114.59 points or 6.99%.
Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 5162.33 points or 53.51% in calendar year 2009 as on 19 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 6,649.24 points or 81.48% as on 19 August 2009. FII inflow in calendar year 2009 totaled Rs 36,628.60 crore (till 17 August 2009).
Coming back to today's trade, the BSE Mid-Cap index was down 1.14% and the BSE Small-Cap index was down 0.52%. Both the indices outperformed the Sensex.
The BSE FMCG index (down 0.42%), the BSE Consumer Durables index (down 0.54%), the BSE Capital Goods index (down 0.73%), the BSE Bankex (down 1.01%), the BSE Healthcare index (down 1.17%), the BSE IT index (down 1.29%), the BSE Teck index (down 1.46%), outperformed the Sensex.
The BSE Oil & Gas index (down 2.68%), the BSE Metal index (down 2.33%), the BSE Auto index (down 2.14%), the BSE Power index (down 1.93%), the BSE PSU index (down 1.88%), the BSE Realty index (down 1.86%), underperformed the Sensex.
BSE clocked a turnover of Rs 5297 crore, higher than Rs 5189.12 crore on Tuesday, 18 August 2009.
The market breadth, indicating the overall health of the market, turned weak from a strong breadth earlier in the day. On BSE, 1130 shares advanced as compared with 1486 that declined. A total of 89 shares remained unchanged.
From 30 share Sensex pack, 27 stocks fell and rest rose.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) was down 3.23% to Rs 1883.45. Reliance Industries (RIL) has reportedly told the government that it is "ready and open" to scrutiny by any of its agencies, including Comptroller and Auditor General (CAG), for the expenditure it has incurred on discovering and developing the KG-D6 gas fields.
The latest twist in the battle between the two Ambani brothers, has seen Anil Ambani, chairman, Reliance Anil Dhirubai Ambani Group (ADAG) mount an all out blitzkrieg against elder brother Mukesh Ambani and the petroleum ministry. For the past three days, Reliance ADAG has issued front page advertisement campaign in leading financial dailies claiming that the national exchequer is being deprived of its rightful share and that Reliance Industries (RIL) will be making super-normal profits of Rs 50000 crore.
As per recent reports, 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 crude edged lower after a sharp rally on Tuesday, 18 August 2009. India's largest state-run oil exploration firm by sales ONGC fell 1.99%.
Crude oil for September 2009 delivery was down 64 cents or nearly 1% at $68.55 a barrel on the New York Mercantile Exchange tracking a decline in Asia stocks. The price had jumped nearly 4% on Tuesday on rally in US equities.
Cairn India fell 1.88%. Cairn India, the domestic subsidiary of Edinburgh-based oil explorer Cairn Energy, 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.
Auto stocks fell on concerns arising from scanty rains. Auto firms derive substantial revenue from rural India. Tata Motors, Hero Honda Motors, Mahindra & Mahindra fell by between 2.27% to 3.58%.
India's largest car maker by sales Maruti Suzuki India fell 0.12% to Rs 1301 even on reports the country's largest small-car maker is expecting a double digit growth over the next few months. The stock came off the day's low of Rs 1276.10.
Metal shares declined as copper prices fell on Wednesday, with Shanghai futures shedding more than 3% and London copper down by 2% pressure from a slide in Chinese equities. Steel Authority of India, Sterlite Industries, Tata Steel, Hindalco Industries, Hindustan Zinc, Jindal Steel & Power fell by between 0.41% to 3.93%.
IT stocks fell on weak US housing data. US is the biggest market for Indian IT firms. India's largest IT exporter by sales TCS fell 2.11%. India's third largest IT exporter by sales Wipro fell 1.43% even as its ADR rose 0.55% on Tuesday.
India's second largest IT exporter by sales Infosys fell 1.05% even as its American depository receipt (ADR) rose 0.71% on Tuesday. As per reports, the has bid for more than 10 large government projects in India
Realty shares fell on profit taking after recent gains. Phoenix Mills, Unitech, Akruti City, Omaxe, Ansal Properties, Anant Raj Industries fell by between 0.6% to 3.28%. There are 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.
Banking stocks fell on profit taking. India's largest private sector bank by net profit ICICI Bank fell 0.41% to Rs 716.70 even as its ADR rose 3.28% on Tuesday. The stock came off the day's low of Rs 700.15.
India's biggest commercial bank in terms of branch network State Bank of India (SBI) fell 2.46%. Other PSU bank stocks, Union Bank of India, Bank of Baroda, Bank of India, fell by between 0.59% to 3.05%.
India's second largest private sector bank by net profit HDFC Bank rose 0.44% to Rs 1,447.20 as its ADR rose 3.63% on Tuesday. The stock came off the day's low of Rs 1,411.25.
India's largest dedicated home loan lender HDFC rose 1.56%, extending gains for the second day, on its plan to raise funds through a simultaneous issue of equity warrants and non-convertible debentures to qualified institutional buyers.
Construction, capital goods and cement shares fell on profit taking after recent gains triggered by government's thrust on infrastructure. Among construction shares, Era Infra Engineering, Gayatri Projects, Hindustan Construction Company, Jaiprakash Associates fell by between 0.44% to 2.8%.
But India's largest engineering and construction firm by sales Larsen and Toubro rose 0.22% to Rs 1481 on recent reports L&T Finance plans to foray into general insurance segment by 2010. The stock came off the day's low of Rs 1441.25. L&T holds 99.99% stake in L&T Finance.
Among cement shares, ACC, Ultratech Cement, Ambuja Cements, Grasim Industries, Birla Corporation fell by between 1.7% to 5.08%.
From the capital goods space, ABB, Siemens, Bharat Heavy Electricals, Praj Industries, Crompton Greaves fell by between 0.22% to 2.81%.
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. Bidding is expected to start soon on 139 road projects covering 14,395 kilometres at a cost of about US$ 21 billion.
FMCG stocks fell on concerns over scanty rains. FMCG firms derive substantial revenue from rural markets. Dabur India, Marico, ITC, Hindustan Unilever fell by between 0.38% to 2.77%.
Sugar stocks fell, extending recent losses. Bajaj Hindustan, Balrampur Chini and Shree Renuka Sugars fell by between 3.03% to 4.45%. Agriculture minister Sharad Pawar today said sugar production prospects for next season are not bright
IFCI clocked the highest volume of 2.35 crore shares on BSE. Unitech (1.76 crore shares), Firstsource Solutions (1.63 crore shares), Cals Refineries (1.59 crore shares) and Suzlon Energy (1.49 crore shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 286.06 crore on BSE. Tata Steel (Rs 158.07 crore), Unitech (Rs 145.51 crore), Reliance Capital (Rs 140.32 crore) and Suzlon Energy (Rs 126.80 crore) were the other turnover toppers in that order.
Mahindra & Mahindra, Rallis India, Reliance Industries may see action
Mahindra & Mahindra will reportedly spend around Rs 2000 crore to augment capacity at its Chakan plant that is expected to be operational in October 2009, as it looks to crack the US car market that accounts for more than a fifth of all cars sold globally.
The Tata Group is reportedly considering merging pesticide maker Rallis India with Tata Chemicals. The marger targets a 15-20% cut in Rallis' raw material, staff, logistics and other operational costs.
Reliance Industries is reportedly looking to sell 15% in Rewas Port in Maharashtra to fund the project as well as to bring in specialists as it does not have expertise in handling cargo.
Real estate developer DLF is reportedly set to bag a 350.71-acre land parcel in Gurgaon for Rs 1703 crore, after it emerged the sole bidder for the land put up for auction by the Haryana government.
The Delhi High Court has reportedly dismissed German drug major Bayer's attempt to stop the Drug Controller General of India (DCGI) from giving marketing approval to India's Cipla for the generic version of the former's patented kidney cancer drug, Nexavar. Besides, it has asked the German firm to pay Rs 6.75 lakh to the government and Cipla as legal cost.
Daiichi Sankyo Co, which owns India's Ranbaxy Labs is reported to be in early talks with Lupin for a product marketing parternship.
Aditya Birla Nuvo is reportedly expecting equity infusion of about Rs 600 crore from founder Kumar Mangalam Birla in the current financial year in the form of warrant conversion. Another Rs 400 crore is expected in the next financial year.
United Spirits has reportedly initiated talks with more than half-a-dozen private equity firms to raise over $300 million to develerage its
Pre Session Commentary - Aug 19 2009
Today domestic markets are likely to open positive as there is no negative news in the markets. Meanwhile US markets have closed positive after some rebound happening across broader level similar to that of domestic markets yesterday. Asian markets are trading mixed and therefore there is hardly any guidance for traders, which will result in a range bound trade along the base line today.
On Tuesday, Domestic markets closed positive with some rebound happening across broader level as against previous day’s heavy losses. Domestic market ended the session with handsome gains backed by significant buying that emerged after Asian markets reversed losses. Higher US index futures also added to sentiments. Market touched the day’s high during afternoon trade mirroring firm European markets though afterwards pared gains a bit. However, monsoon worries continued to remain a key concern as 9 States have declared drought. Meanwhile, Finance Minister Pranab Mukherjee said that government has no proposal to write off loans taken by farmers as it did in 2008 in its first term in office. Further, India’s July export is down 26% from a year earlier. The BSE Sensex ended above 15,000 level and NSE Nifty closed above 4,450 mark.
The BSE Sensex closed higher by 250.34 points or (1.69%) at 15,035.26 and NSE Nifty ended up by 71 points or (1.62%) at 4,458.90. BSE Mid Caps and Small Caps closed with gains of 111.04 and 129.74 points at 5,496.55 and 6,341.45 respectively. The BSE Sensex touched intraday high of 15,134.51 and intraday low of 14,740.26.
On Tuesday, US stock markets closed higher. There was little rebound in the broader level from the previous session’s sharp decline. Buyers picked up stocks at low prices to give a good start for the markets. Financial stocks were the charm of the day as it gained a remarkable 1.9% during the session as against previous session’s loss of 4%. On the macro economic level housing starts and building permits for July recorded a slower-than-expected annualized rate of 581,000 and 560,000, respectively. Meanwhile, overall producer prices for the month of July declined 0.9%, which was more than what had been expected. Core prices made a surprise 0.1% decline, which suggests that inflationary pressures remain restricted. US light crude oil futures for September delivery closed at $69.19 per barrel up by 3.7% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 82.60 points at 9,217.94, NASDAQ index inclined by 25.08 points to 1,955.92 and the S&P 500 (SPX) closed higher by 9.94 points at 989.67.
Today major stock markets in Asia are trading mixed. Japan''s Nikkei is trading down by 24.34 points at 10,260.62 followed by Hang Seng which is trading lower by 68.02 points at 20,238.25. Taiwan Weighted is trading also trading higher by 33.25 points at 6,823.02. Seoul Composite is also up by 5.28 points at 1,555.52. Strait Times is low by 14.26 points at 2,553.46.
Indian ADRs ended in green on Tuesday. In the IT space, Satyam Computers was up 5.24%, Patni Computers was up 3.52%, Infosys was up 0.71% and Wipro was up 0.55%. In the banking space, ICICI Bank was up 3.28% and HDFC Bank was up 3.63%. In the telecom space, Tata Communication was up 0.88% and MTNL was up 0.27%. In other sectors, Sterlite Industries was up 3.72%, Dr Reddy''s Labs was up 3.58% and Tata Motors was up 3.29%.
The FIIs on Tuesday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 1,766.40 Crore and gross debt purchased stood at Rs 2,740.20 Crore while the gross equity sold stood at Rs 550.10 Crore and gross debt sold stood at Rs 122.30 Crore. Therefore, the net investment of equity reported was Rs (973.80) Crore and net debt was Rs 427.80 Crore.
On Tuesday, the partially convertible rupee ended at 48.79/80 per dollar, 0.33% weaker than previous close at 48.95/96. Rupee gained strength on the back of surge in local stock markets that has raised concerns of dollar inflow.
On BSE, total number of shares traded were 40.35 Crore and total turnover stood at Rs 5,189.12 Crore. On NSE, total number of shares traded were 84.56 Crore and total turnover was Rs 15,795.70 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 84611851 shares, followed by Suzlon Energy with 41260777, Hindalco with 14262790, DLF with 12873196 and Tata Steel with 11763155 shares.
On NSE Future and Options, total number of contracts traded in index futures was 889389 with a total turnover of Rs 18,758.01 Crore. Along with this total number of contracts traded in stock futures were 581616 with a total turnover of Rs 18,176.64 crore. Total numbers of contracts for index options were 1556191 with a total turnover of Rs 35,111.01 Crore and total numbers of contracts for stock options were 50168 and notional turnover was Rs 1,610.08 Crore.
Today, Nifty would have a support at 4,385 and resistance at 4,512 and BSE Sensex has support at 14,886 and resistance at 15,225
Grey Market - NHPC, Oil India, Adani Power, Jindal Cotex
NHPC 30 to 36
8 to 10
Adani Power 100
10 to 12
Jindal Cotex 70 to 75
3 to 4
Oil India 1300 to 1500 (Approximate)
160 to 170
Technical Levels for Market, Stocks
| S3 | S2 | S1 | Close | R1 | R2 | R3 | |
| Sensex Index | 14,775 | 14,838 | 14,905 | 15,035 | 15,165 | 15,232 | 15,295 |
| Nifty Index | 4,434 | 4,440 | 4,446 | 4,459 | 4,472 | 4,478 | 4,484 |
| ABB Ltd | 648 | 652 | 656 | 665 | 673 | 677 | 681 |
| ACC | 779 | 783 | 788 | 798 | 807 | 812 | 817 |
| Ambuja Cements | 98 | 99 | 99 | 100 | 101 | 101 | 102 |
| Bajaj Holdings | 440 | 442 | 445 | 450 | 455 | 458 | 461 |
| BHEL | 2,158 | 2,180 | 2,202 | 2,247 | 2,291 | 2,314 | 2,336 |
| Bharti Airte | 399 | 402 | 405 | 411 | 417 | 420 | 423 |
| Cipla | 258 | 260 | 261 | 264 | 267 | 268 | 270 |
| Dabur India | 120 | 121 | 122 | 123 | 124 | 125 | 126 |
| GAIL India | 319 | 321 | 324 | 329 | 333 | 336 | 338 |
| Grasim Ind. | 2,508 | 2,525 | 2,543 | 2,578 | 2,612 | 2,630 | 2,647 |
| HCL Tech | 248 | 250 | 252 | 257 | 262 | 265 | 267 |
| HDFC Bank | 1,405 | 1,413 | 1,423 | 1,441 | 1,459 | 1,468 | 1,477 |
| Hero Honda | 1,337 | 1,350 | 1,364 | 1,392 | 1,419 | 1,433 | 1,446 |
| Hindalco | 101 | 102 | 104 | 107 | 109 | 111 | 112 |
| Hindustan Unilever | 250 | 252 | 254 | 259 | 263 | 265 | 267 |
| ICICI Bank | 698 | 704 | 709 | 720 | 731 | 737 | 742 |
| Infosys Tech | 1,944 | 1,951 | 1,959 | 1,973 | 1,988 | 1,995 | 2,002 |
| ITC Ltd | 219 | 220 | 222 | 225 | 228 | 229 | 230 |
| L&T | 1,416 | 1,431 | 1,447 | 1,479 | 1,510 | 1,526 | 1,541 |
| MTNL | 92 | 93 | 93 | 95 | 96 | 97 | 98 |
| M&M | 748 | 753 | 759 | 769 | 779 | 785 | 790 |
| Maruti Suzuki | 1,265 | 1,274 | 1,283 | 1,300 | 1,318 | 1,327 | 1,335 |
| Mahindra Satyam | 96 | 97 | 99 | 101 | 104 | 105 | 106 |
| National Alumin | 306 | 309 | 312 | 317 | 323 | 325 | 328 |
| ONGC | 1,157 | 1,163 | 1,169 | 1,182 | 1,195 | 1,202 | 1,208 |
| Oriental Bank | 162 | 163 | 163 | 165 | 167 | 167 | 168 |
| PNB | 651 | 654 | 658 | 666 | 673 | 677 | 681 |
| Ranbaxy Labs | 296 | 298 | 300 | 304 | 307 | 309 | 311 |
| Reliance Capital | 791 | 797 | 804 | 817 | 830 | 837 | 843 |
| Reliance Comm | 244 | 246 | 248 | 252 | 256 | 257 | 259 |
| Reliance Energy | 1,098 | 1,107 | 1,117 | 1,135 | 1,154 | 1,164 | 1,173 |
| Reliance Inds | 1,917 | 1,923 | 1,929 | 1,941 | 1,953 | 1,959 | 1,965 |
| R Power | 154 | 155 | 156 | 159 | 161 | 162 | 163 |
| Siemens India | 428 | 435 | 441 | 454 | 466 | 472 | 479 |
| SBI | 1,694 | 1,703 | 1,714 | 1,734 | 1,755 | 1,765 | 1,775 |
| TCS | 498 | 501 | 504 | 509 | 514 | 517 | 519 |
| Tata Motors | 424 | 428 | 432 | 440 | 448 | 452 | 456 |
| Tata Power | 1,233 | 1,240 | 1,247 | 1,262 | 1,276 | 1,283 | 1,290 |
| Tata Steel | 434 | 438 | 443 | 452 | 461 | 465 | 470 |
| Tata comm | 471 | 473 | 475 | 480 | 485 | 488 | 490 |
| Wipro | 489 | 491 | 494 | 500 | 506 | 509 | 512 |
| Wire And Wireless | 18 | 19 | 19 | 19 | 20 | 20 | 20 |
| Zee Entertainment | 184 | 185 | 187 | 189 | 192 | 194 | 195 |
| NOTE : S1, S2 and S3 are critical support levels while R1, R2 and R3 are resistance levels. Trading call depends on the price band | |||||||
Daily News Roundup - Aug 19 2009
Cairn Energy, ONGC to invest US$4bn in Rajasthan (ET)
RIL has no objection to CAG audit on gas field costs (ET)
Cipla gets High Court approval to sell copy of Bayer’s cancer drug (ET)
Steel Minister has asked SAIL to complete its ongoing Rs700bn expansion program on time (ET)
NTPC FPO likely next year (BL)
NTPC invites global bids for 2.5mmscmd gas (FE)
Infosys to foray into new application areas (FE)
M&M to spend Rs20bn to augment capacity at its Chakan plant to drive into the US market (ET)
M&M to launch four tractors in the current fiscal and expects 10% growth in farm equipment sales (BS)
Mahindra Satyam is eyeing business shift to spur revenues (FE)
SBI to launch host of sector-specific PE funds in addition to a venture capital fund (BS)
DLF is set to bag a 350-acre land parcel in Gurgaon for ~Rs17bn (ET)
Unitech Wireless raises Rs50bn as bridge loan from SBI to fund the rollout of its operations (ET)
Reliance Infra takes MSRDC to High Court over toll bid rejection (ET)
Bombay High Court admits AB Nuvo’s application challenging IT department’s demand for capital gains tax (ET)
DLF Pramerica to infuse Rs1.5-2bn by 2010 to maintain its solvency ratio and to develop infrastructure (BS)
AB Nuvo expects Rs6bn equity infusion from its promoters in the current financial year (BS)
Bharat Forge to raise Rs7.5bn to meet its long-term financial requirements (BL)
Welspun Group firm, Welspun Power & Steel, plans to invest Rs60bn towards setting-up a fully integrated 1.5mtpa steel plant in Maharashtra (BS)
Puravankara Projects plans to develop a high-end villa project in its 26-acre land parcel on Colombo’s airport road (ET)
RPG Group owned Spencer’s Retail is looking at diluting 10% stake to raise funds (ET)
Dish TV to raise US$200mn through issue of securities in domestic and international market (ET)
Glenmark is facing a lawsuit in US for a patent infringement case of an anti-malaria product (ET)
Foreign investment in local banks in the form of ADRs, GDRs, FCCBs and any type of convertible warrants may not be part of FDI (ET)
Power Ministry will ask for more natural gas for additional power generation capacity of around 15,000MW (BL)
Government to divest stake in at least 6-7 PSUs in next ten months (BL)
Government has cleared FDI proposals worth Rs11bn (ET)
Exports in July 2009 declined by 26% yoy, as per trade secretary (BS)
Gold imports dip 67.5% in July 2009 (BS)
Choppy day, plan it well!
A goal without a plan is just a wish.
After Monday Mayhem came Tuesday Turnaround, now Wednesday what? Don’t get perturbed by such high volatility. Remember, we have covered a long distance from early March. Some consolidation after a reasonably protracted advance is a given. Brace for wild swings as most global economies will witness a slow recovery. The same holds true for India, especially now that the monsoon has failed to live up to expectations. Interest rates and inflation could also play spoilsport going ahead. Overall though, India should do reasonably well in terms of GDP growth.
Given the mixed global cues, particularly from Asian markets, we expect a cautious opening and a choppy day. Most world equity markets recently touched multi-month highs before softening a little. The catalyst for that sharp rally was growing optimism that we are out of the woods and are on the road to recovery. IMF’s top economist Olivier Blanchard also endorses this view, but warns that the recovery won't be typical. The short point is one should not expect very high growth rates and a swift recovery.
Shares bought on August 18, should not be sold on August 19, as trades done on both these days will be settled together on August 21. There is no settlement on August 19, due to the ‘Parsi New Year’. Also, please note that the pay-in schedule has changed for stocks sold on August 18, and August 19, to 10.00 a.m. and 2.00 p.m. respectively.
FIIs were net sellers at Rs7.2bn in the cash segment on Tuesday on a provisional basis while the local funds pumped in Rs4.67bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs8.5bn. On Monday, the foreign funds were net sellers at Rs9.74bn in the cash segment. Mutual Funds too were net sellers of Rs6.82bn in the cash segment.
US stocks rebounded from Monday's big losses, spurred by Home Depot's encouraging results and forecast. A few bright spots in the day's housing market report also prompted investors to resume their buying spree after a two-session retreat.
The Dow Jones Industrial Average added 82 points, or 0.9%, to 9,217.94. The S&P 500 index rose 10 points, or 1%, to 989.67. The Nasdaq Composite index gained 25 points, or 1.3%, to 1,955.92.
Market breadth was positive and trading volume was light.
All the three major US stock indices lost over 3% in two sessions on worries that circumspect American consumers could hurt an already fragile recovery. But Tuesday investors welcomed better news from the retail sector.
Volatility is bound to take place as we try to figure out the timing and the intensity of the economic rebound. A weaker-than-expected consumer sentiment report on Friday and Lowe's disappointing profit report on Monday had sparked a sell-off, which followed a roughly five-month advance.
The S&P 500 is 46% higher since bottoming March 9. Year-to-date, it is just up 9.6% as of Tuesday's close.
Home Depot reported earnings of 66 cents per share, versus 77 cents a year ago, as the recession cut into its business. But results were better than expected and the home improvement retailer boosted its full-year earnings outlook. Shares of the Dow component gained 3%.
Target reported earnings of 79 cents per share versus 82 cents a year earlier, topping expectations, due to cost cutting and reduced inventories. But revenue and same-store sales slipped, as consumers remained cautious. Shares gained 7.6%.
Housing starts and building permits both slipped in July, according to a Commerce Department report. The report surprised Wall Street economists who were looking for an improvement.
Housing starts fell to a 581,000 annualized rate in July from a revised 587,000 in June. Economists had forecast a reading of 599,000.
Building permits, which indicate builder confidence, fell to a 560,000 annualized rate in July from a revised 570,000 annualized rate in June. Economists thought it would rise to a 576,000 annualized rate.
On the positive side, the report showed that single-family housing construction rose 1.7% in July, advancing for the fifth straight month and at the fastest pace since October.
A separate report showed that inflation at the wholesale level remains in check. The Producer Price Index (PPI) fell 0.9% in July after rising 1.8% in June. Economists had predicted a fall to 0.3%. The core PPI, which strips out volatile food and energy prices, fell 0.1% in July versus forecasts for a rise of 0.1%.
General Motors said it is boosting production in the second half of the year and bringing 1,350 of its North American employees back to work as a result of increased demand from the government's Cash for Clunkers program.
Separately, GM said it made a deal to sell its money-losing Saab to Swedish luxury sports car maker Koenigsegg.
Huron Consulting Group rallied 37.6% in unusually active Nasdaq trading after the business consultant reported higher quarterly revenue and earnings that topped estimates.
American Axle & Manufacturing Holdings surged 117% in unusually active New York Stock Exchange trading after saying it will get up to $210 million in help from former parent GM. The auto parts manufacturer is trying to restructure its debt outside of bankruptcy court.
Treasury prices slipped, raising the yield on the benchmark 10-year note to 3.51% from 3.47% on Monday.
Crude oil rose for the first time in three days, surging the most this month, as the dollar dropped against the euro, bolstering the appeal of commodities. US light crude oil for September delivery rose $2.44 to settle at $69.19 a barrel on the New York Mercantile Exchange.
COMEX gold for December delivery rose $3.40 to settle at $939.20 an ounce.
The dollar fell against the euro for the first time in three days following the release of an upbeat German investor confidence report. The pound increased from near a one-month low versus the dollar after a report showed the UK inflation rate was higher in July than economists forecast. The dollar and yen declined against major counterparts, including the South African rand as stocks and commodities advanced, reducing demand for relative safety.
After the close, Hewlett-Packard reported lower quarterly sales and earnings that topped analysts estimates. Wednesday brings no market-moving quarterly results or economic news. The weekly oil inventories report from the Energy Information Administration is due in the mid-morning.
European shares rallied after the ZEW Center for European Economic Research’s index of German investor and analyst expectations rose to 56.1 in August from 39.5 in July, exceeding the median forecast for a reading of 45.
The pan-European Dow Jones Stoxx 600 index rose 1.1% to 226.61. On Monday it closed down 2%.
UK's FTSE 100 index rose 0.9% to 4,685.78, while Germany's DAX index climbed 0.9% to 5,250.74 and the French CAC-40 index advanced 0.9% to 3,450.69.
After a heartbreaking start to the week and dropping over 600 points on Monday, Indian markets staged a smart come back with the BSE Sensex managing to close above the psychological 15,000 mark. The index was seen taking support at the 50 day moving average for the second straight day.
The smart upswing was led by the Capital Goods, Realty, Metal and Power stocks, even the Mid-Cap and the Small-Cap stocks participated bounce back. Sentiments further got a lift as cues from the Asian and the European markets also were positive.
The BSE Sensex gained 250 points or 1.7% at 15,035 after touching a high of 15,134 and a low of 14,740. The index opened at 14,746 against the previous close of 15,785. The NSE Nifty ended higher by 71 points to shut shop at 4,459.
In Asia, the Nikkei in Japan ended higher by 0.2% at 10,284 while Australia's S&P/ASX ended flat at 4,381. The Hang Seng index in Hong Kong gained 0.8% at 20,306. Shanghai index in China gained by 1.4% at 2,910.
In Europe, stocks were trading in green. The FTSE in the UK was up 0.8%. The DAX in Germany was up 0.5% and the CAC 40 index in France was up 0.6%.
Coming back to India, among the BSE sectoral indices, the Capital Goods index was the top gainer, gaining 3.6%, followed by the Realty index that was up 2.3%. The BSE Metal index up 2.3% and the BSE Power index was up 2.1%.
The BSE Mid-Cap index gained 2% and the BSE Small-Cap index gained by 2%.
Within the Sensex, the major gainers were Hindalco, JP Associates, L&T, HUL, Tata Steel, HDFC and DLF. Among the major losers were Infosys, Grasim, TCS and Sun Pharma.
Outside the frontline indices, the big gainers in the broader market were Godrej Industries, Rolta, Mphasis, Bharat Forge, IFCI and Renuka Sugar. On the other hand, losers included Glaxo, REI Agro, Marico, Cadila and HCL Tech.
Shares of L&T surged by 4.6% to Rs1477 after reports stated that the company plans to initiate its third round of major business restructuring in 2010 and has appointed consultants McKinsey and Bain to guide on the same. The stock opened at Rs1411 and made an intra-day high of Rs1485 and a low of Rs1390. Total traded volumes stood at 0.5mn shares.
Shares of HDFC gained by 3% to Rs2321 after the company raised Rs43bn through a QIP issue of non-convertible debentures with attached warrants that entitle the holder to buy its shares at ~Rs3,000 per share within three years. The stock opened at Rs2260 and made an intra-day high of Rs2342 and a low of Rs2210. Total traded volumes stood at 0.1mn shares.
Shares of Renuka Sugars advanced by 6.5% to Rs183 after the company secured FMC approval for acquiring 5% in NCDEX for Rs365mn. The company would acquire the stake from Intercontinental Exchange and Goldman Sachs Investments.
The stock opened at Rs171 and made an intra-day high of Rs184 and a low of Rs171. Total traded volumes stood at 2mn shares.
Shares of Essar Oil gained by 4% to Rs135 after reports stated that the company was bidding to acquire Royal Dutch Shell Plc refineries in the U.K. and Germany. The stock opened at Rs129 and made an intra-day high of Rs136 and a low of Rs128. Total traded volumes stood at 1.3mn shares.
Market may extend Tuesday's gains on firm global cues
The key benchmark indices may extend Tuesday's (18 August 2009) gains on positive global cues. However, weak monsoon, crucial for India's domestic-demand and fall in India's exports may dampen investor sentiment. Market may continue to track global cues in the absence of near term domestic trigger for the market.
Firm global cues helped domestic bourses recover some of the Monday's sharp losses. The BSE 30-share Sensex rose 250.34 points or 1.69% at 15,035.26 on Tuesday, 18 August 2009 after falling close to 4% on Monday.
As per the provisional figures on NSE, foreign funds sold shares worth Rs 721.84 crore and domestic funds bought shares worth Rs 467.44 crore on Tuesday.
Meagre monsoon rains have pushed India to the brink of drought, putting pressure on food prices and energy supplies and imperilling growth. 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.
Finance Minister Pranab Mukherjee said on Tuesday he expected growth in 2009/10 to be over six percent, as forecast earlier and in line with a central bank estimate, despite the monsoon shortfall. Low rainfall has slowed the refilling of India's main reservoirs, threatening the supply of hydro-electric power which accounts for a quarter of India's generation and reducing availability of water to irrigate winter-sown crops such as wheat and rapeseed. Farms minister Sharad Pawar said on Monday that India needed to increase the planting of winter-sown crops and improve irrigation to make up for the damage to farms.
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.
India's merchandise exports fell for the 10th straight month in July, but its balance-of-trade account improved as imports declined at a faster pace, Commerce Secretary Rahul Khullar said at a workshop on agricultural exports on Tuesday. The country's merchandise exports fell 26% from a year earlier in July as the economic crisis continued to hurt global demand, while the value of imports shrank 35%-36% he said.
The government will reportedly sell stakes in at least six to seven more state-run firms in the next 12-14 months after a strong response to an initial public offering last week. Last month, the government's budget for 2009/10 included plans to raise Rs 1120 crore ($230 million) from initial public offers of unlisted firms including Railways subsidiary RITES, Cochin Shipyard, Telecommunications Consultants India and Manganese Ore India. Firms including Oil India, Coal India, NMDC, NTPC, BHEL, Rural Electrification Corp and Shipping Corp of India are also candidates for stake sales.
Asian stocks were mixed today. Nomura Holdings Inc. turned “bullish” on Japan's auto industry. The key benchmark indices in China, South Korea and Taiwan rose by between 0.07% to 0.38%. The key benchmark indices in Hong Kong, Japan and Singapore fell by between 0.24% to 0.41%.
The US Markets made a broad-based rebound from the previous session's sharp decline, finishing near intra-day highs. The markets snapped a two-day losing streak. The Dow gained 82.60 points, or 0.9%, to 9,217.94. The S&P 500 index gained 9.94 points, or 1%, to 989.67, while the Nasdaq Composite Index added 25.08 points, or 1.3%, to 1,955.92.
The markets seemed to shrug off some weak economic data. Housing starts dropped 1% in July, well short of expectations after an upwardly-revised 6.5-percent jump in June. Meanwhile, overall producer prices dropped by 0.9% last month, compared with a 1.8-percent gain in June. However, core prices made a surprise 0.1% decline, suggesting that inflationary pressures remain restricted.
In important earnings from the US, Hewlett-Packard reported better-than-expected quarterly earnings and revenue on Tuesday.
Volatile crude ends higher
Prices rise as the dollar falters against counterparts
Crude prices ended higher on Tuesday, 18 August, 2009. Prices rose as US stocks rebounded today for the first time in three days. The slipping dollar was also one of the reasons for crude to end higher.
On Tuesday, crude-oil futures for light sweet crude for September delivery closed at $69.19/barrel (higher by $2.44 or 3.6%). During intra day trading, crude fell to an intra day low of $66.11/barrel and also rose to a high of $69.58/barrel. Last 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 53% since then. Year to date, in 2009, crude prices are higher by 45.6%.
In the currency market on Tuesday, the dollar index which weighs the value of dollar against a basket of six other currencies, fell by 0.3%. The dollar gained against the Japanese yen, but edged lower against the British pound and was little changed against the euro. The greenback slipped in European trading after a survey showed German investor confidence hit its highest level in more than three years and after British inflation failed to show an expected decline.
Also at the Nymex on Tuesday, September reformulated gasoline rose 4.87 cents to end at $2.0002 a gallon and September heating oil gained 3.85 cents to finish at $1.8650 a gallon.
September natural-gas futures fell 6.70 cents to $3.096 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 September delivery closed higher by Rs 98 (2.9%) at Rs 3,451/barrel. Natural gas for August delivery closed lower by Rs 1.4(0.90%) at Rs 153/mmbtu.
Precious metals end mixed
Gold rises but silver slips marginally
Yellow metal prices rose on Tuesday, 18 August, 2009. Prices rose following upbeat economic reports in the US. Prices also rose due to the slipping dollar. But silver registered marginal drop.
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 Tuesday, gold for December delivery ended at $939.2, higher by $3.4 (0.4%) an ounce on the New York Mercantile Exchange. During intra day trading, gold rose to a high of $941.6. Last week, gold ended lower by almost 1.1%. After four consecutive weekly gains, this was yellow metal's first weekly drop. Year to date, gold prices are higher by 5.8%.
Gold ended July, 2009 higher by 2.8%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (9%) since then.
On Tuesday, Comex silver futures for September delivery fell marginally by 1 cent to $13.96 an ounce. Last 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 25.5% this year. For 2008, silver had lost 24%.
In the currency market on Tuesday, the dollar index which weighs the value of dollar against a basket of six other currencies, fell by 0.3%. The dollar gained against the Japanese yen, but edged lower against the British pound and was little changed against the euro. The greenback slipped in European trading after a survey showed German investor confidence hit its highest level in more than three years and after British inflation failed to show an expected decline.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for October delivery closed lower by Rs 7 (0.04%) at Rs 14,870 per 10 grams. Prices rose to a high of Rs 14,919 per 10 grams and fell to a low of Rs 14,830 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 141 (0.61%) lower at Rs 22,938/Kg. Prices opened at Rs 23,119/kg and fell to a low of Rs 22,812/Kg during the day's trading.
Asian stocks trade mix
Asian stock markets turn mixed in morning trade, supported by gains for U.S. stocks. In Japan, Sanyo Electric powers higher on a report that it will sell hybrid-car batteries to auto giant Toyota.
Japanese benchmark index Nikkei 225 fell 23.16 points, or 0.23%, to trade at 10,261.80.
Hong Kong`s Hang Seng index declined 111.18 points, or 0.55%, to trade at 20,195.09.
China`s Shanghai Composite decreased 5.14 points, or 0.18% to trade at 2,905.75.
Taiwan`s Taiex index gained rose 17.06 points, or 0.25%, to trade at 6,806.83.
South Korea`s Kospi index gained 1.80 points, or 0.12%, to trade at 1,552.04.
Singapore`s Straits Times decreased 12.05 points, or 0.47%, to trade at 2,555.67. (7.42 a.m., IST)
Madras Cements
We recommend a sell in Madras Cements from a short-term perspective. It is evident from the charts that the stock was on an intermediate-term uptrend from its March low of Rs 57 till July high of Rs 123. However, the stock met with a significant resistance around Rs 120 and changed its trend. It has been on a short-term downtrend since the July high. The stock conclusively penetrated its intermediate-term uptrend-line in recent times. Moreover, we observe that the volume has been dropping since the July peak. The daily and weekly relative strength indices (RSI) are declining in the neutral region towards the bearish zone. Besides, the weekly price rate of change indicator has entered the negative territory signalling selling interest. Our short-term outlook for the stock is bearish. We expect its decline to continue until it hits our price target of Rs 95. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 110.
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