Thursday, August 20, 2009
RIL August 2009 futures at premium
Nifty August 2009 futures were at 4449.90 at a discount of 3.55 points as compared to the spot closing of 4453.45. Turnover in NSE's futures & options (F&O) segment was Rs 61,882.96 crore, sharply lower than Rs 82,896.50 crore on Wednesday, 19 August 2009.
Tata Steel August 2009 futures were at discount at 440.50 compared to the spot closing of 442.05.
Reliance Industries (RIL) August 2009 futures were at premium at 1902 compared to the spot closing of 1898.40.
JSW Steel August 2009 futures were at premium at 696.80 compared to the spot closing of 695.95.
In the cash market, the S&P CNX Nifty rose 59.35 points or 1.35% at 4453.45.
The domestic market today took a sharp turn from the sharp fall yesterday, as sustained buying during the trading propelled market to end with gains. Benchmark indices surged to intraday high during final trading hours on account of upward movement in front liners led by strong European markets along with higher US index futures. Firm closing of Asian stocks also lifted the sentiments. In addition, stocks extended gains also on news that rainfall dearth has reduced a bit. India’s cumulative rainfall deficit has lessened to 27% during the period from 1 June 2009 to 18 August 2009 from 29% during the period from 1 June 2009 to 12 August 2009. Though, inflation came in negative territory for 10th consecutive week. Inflation for the week ended 8th August stood at -1.53% with the previous week''s annual decline of -1.74%. The BSE Sensex ended above 15,000 level and NSE Nifty closed above 4,400 mark.
Market opened with decent gains mirroring favorable cues from the global markets. Majority of Asian Markets were in green in early trade and the US stocks markets closed higher on Wednesday backed by higher energy stocks after surprise fall in crude inventories. The extraordinary recovery by Crude oil prices helped to boost the shine of energy stocks. Further, Indian stocks continued upward movement on significant buying over the ground due to sharp rise in Chinese markets. Finally, market concluded its northward journey with gains in line with strong global stocks. From the sectoral front, investors on-loaded positions across the sectors. Besides, Auto, Bank, Power, IT, Consumer Durable, Realty and Metal stocks witnessed most of the buying from these baskets. Broader markets also followed the same trend as BSE Midcap and Smallcap stocks ended with gains.
Among the Sensex pack 29 stocks ended in green territory and 1 stock ended in red territory. The market breadth indicating the overall health of the market remained positive as 1525 stocks closed in green while 1145 stocks closed in red and 77 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 202.68 points or (1.37%) at 15,012.32 and NSE Nifty ended up by 59.35 points or (1.35%) at 4,453.45. BSE Mid Caps and Small Caps closed with gains of 43.33 and 51.88 points at 5,477.38 and 6,360.27 respectively. The BSE Sensex touched intraday high of 15,145 and intraday low of 14,928.18.
Gainers from the BSE Sensex pack are Maruti Suzuki (4.88%), M&M Ltd (4.48%), Herohonda Motors (3.90%), SBI (3.70%), Grasim Industries (3.01%), Tata Power (2.52%), HDFC Bank (2.31%), Wipro Ltd (2.24%), Infosys Tech (2.16%), RCom (2.08%), Sun Pharma (2.05%), Tata Steel (1.97%) and ONGC Ltd (1.83%).
Only loser from the BSE Sensex pack is Bharti Airtel (1.15%).
India''s inflation came in negative territory for 10th consecutive week. Inflation for the week ended August 8 stood at -1.53% with the previous week''s annual decline of -1.74% and as against 12.82 % during the corresponding week of the previous year. The WPI for the week ended August 8, 2009 rose by 0.1% to 237.4 from 237.2 for the previous week. The index for primary articles increased 0.2% to 262.9 (provisional) from 262.5 (provisional) the week before, the index for manufactured products rose 0.1% to 206.1 (provisional) from 205.9 (provisional) for the previous week. However, the price index for fuel and power witnessed a slight decline to 338.2 (provisional) from 338.3 (provisional) the week before.
On the global markets front the Asian markets that opened before the Indian market, ended with gains. Shanghai Composite, Hang Seng, Nikkei 225, Singapore''s Straits Times Index and Seoul Composite closed higher by 125.99, 374.63, 179.41, 34.63 and 30.43 points at 2,911.58, 20,328.86, 10,383.41, 2,557.41 and 1,576.39 respectively.
European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading higher 86.94 points at 5,318.92 and in London FTSE 100 is trading up by 67.15 points at 4,756.82.
The BSE Auto index closed higher by (2.60%) or 137.06 points at 5,414.82. Main gainers are Maruti Suzuki (4.88%), M&M Ltd (4.48%), Heorhonda Motors (3.90%), MRF Ltd (2.75%) and Exide Indus (1.75%).
The BSE Bank index gained (1.85%) or 148.10 points at 8,144.32. Gainers are Allahabad Bank (4.08%), Canara Bank (3.86%), SBI (3.70%), Kotak Bank (3.47%) and Bank of Baroda (2.90%).
The BSE Power index ended up by (1.67%) or 46.87 points at 2,859.44 as ABB Ltd (3.67%), Crompton Greaves (3.66%), GMR Infra (3.00%), Tata Power (2.52%) and Siemens Ltd (2.27%) ended in green.
The BSE Consumer Durables index closed higher by (1.66%) or 49.45 points at 3,037.29. Gainers are Blue Star L (2.28%), Titan Ind (1.78%), Videocon Ind (1.71%) and Rajesh Export (0.94%).
The BSE IT index advanced by (1.58%) or 60.57 points at 3,882.30. Gainers are Wipro Ltd (2.24%), Infosys Tech (2.16%), HCL Tech (1.74%), Tech Mahindra (1.73%) and Financ Tech (1.59%).
The BSE Realty index ended up by (1.55%) or 57.19 points at 3,737.96. Gainers are Pheonix Mill (3.29%), Sobha Dev (2.52%), Indiabull Real (2.45%), Unitech Ltd (2.30%) and Omaxe Ltd (2.05%).
Omaxe Ltd gained 2.05% after it received approval from the Uttar Pradesh government to develop an integrated township over 74.2 acres in the state at an investment of Rs 2.5 billion.
Maharashtra Seamless Ltd (MSL) advanced by 1.40%. The Government of Maharashtra has conferred the status of "Mega Project" to company’s new project at Vile Bhagad, Maharashtra. This status will enable MSL to avail various incentives from the Government of Maharashtra in due course of time. MSL has acquired a seamless plant in Romania having an installed capacity of 200000 TPA, which shall be installed, at the above location.
Sterlite Industries Ltd advanced 1.44% after company raised its bid for acquiring US bankrupt copper minter Asarco.
Panacea Biotec Ltd zoomed 5% after the company bagged an order worth $222.37 million for supply of a vaccine.
Mphasis Ltd is ended lower 3.89%. The company has posted a net profit after tax of Rs 2264.80 million for the quarter ended July 31, 2009 as compared to Rs 821.50 million for the quarter ended July 31, 2008. Total Income has increased from Rs 5826.10 million for the quarter ended July 31, 2008 to Rs 9201.20 million for the quarter ended July 31, 2009.
Dhanalakshmi Bank decreased by 0.48%. The bank has slashed its interest rate on deposits across various slabs effective since August 17, according to a release issued. Deposits with a tenure of one-year and above but less than five-years will now yield an interest of 7.50% as against the earlier 8%.
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
20/8/2009 532628 3I INFOTECH TRANSGLOBAL SECURITIES LTD. B 905518 82.35
20/8/2009 532628 3I INFOTECH TRANSGLOBAL SECURITIES LTD. S 905517 82.40
20/8/2009 512149 AVANCE TECHN CHANDRAKANT B SHAH B 323668 2.12
20/8/2009 512149 AVANCE TECHN JASMIN S BAJORIYA B 435000 2.12
20/8/2009 512149 AVANCE TECHN SURESH M GORADIA B 700000 2.13
20/8/2009 512149 AVANCE TECHN JYOTI KOHALI S 360000 2.12
20/8/2009 512149 AVANCE TECHN JASMIN SUSILKUMAR BAJORIYA S 300000 2.13
20/8/2009 512149 AVANCE TECHN CHANDRAKANT B SHAH S 453000 2.13
20/8/2009 512149 AVANCE TECHN RAJIV KHANNA S 300000 2.13
20/8/2009 532995 AVON CORP WITHAL COMMERCIAL PVT LTD B 400000 9.55
20/8/2009 532995 AVON CORP S V ENTERPRISES B 406179 9.62
20/8/2009 532995 AVON CORP S V ENTERPRISES S 411668 9.59
20/8/2009 500032 BAJAJHINDLTD DEUTSCHE SECURITIES MAURITIUS LIMITED S 926000 179.94
20/8/2009 532609 BHARATI SHIP OPG SECURITIES P LTD B 171028 189.49
20/8/2009 532609 BHARATI SHIP OPG SECURITIES P LTD S 171028 189.59
20/8/2009 511628 BRESCON CORP ALOK FINANCE PVT. LTD. B 235100 80.74
20/8/2009 511628 BRESCON CORP PRASHANT DESAI S 33743 80.00
20/8/2009 511628 BRESCON CORP RELIANCE TAX SAVER ELSS FUND S 175450 81.04
20/8/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD B 24000 8.25
20/8/2009 517973 DMC INTER SHIVCHARAN DASS MITTAL B 19000 7.65
20/8/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD S 29300 7.67
20/8/2009 517973 DMC INTER SHIVCHARAN DASS MITTAL S 19400 8.25
20/8/2009 523329 ELDECO HOUS. CAPITAL CONSULATNCY B 10101 139.57
20/8/2009 533090 EXCEL INFO KIRITKUMAR MOHANLAL PATEL B 315937 95.88
20/8/2009 533090 EXCEL INFO NAVEEN TAPARIA B 150405 95.80
20/8/2009 533090 EXCEL INFO KIRITKUMAR MOHANLAL PATEL S 315299 95.63
20/8/2009 533090 EXCEL INFO NAVEEN TAPARIA S 150405 95.09
20/8/2009 513337 GUJ.TOOLROOM SURESH CHAND SUGANCHAND JAIN B 50000 10.00
20/8/2009 513337 GUJ.TOOLROOM ANIL KUMAR BAGRI B 50000 9.96
20/8/2009 513337 GUJ.TOOLROOM DHIRAJLAL V SANGHVI HUF S 45000 9.99
20/8/2009 513337 GUJ.TOOLROOM DEVANG JAYANTKUMAR GADOYA S 25000 9.94
20/8/2009 523467 JAI MATA GLA SK G PASHA B 20000 15.24
20/8/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 60000 15.23
20/8/2009 523467 JAI MATA GLA M.P.VORA SHARES & SEC P LTD S 15044 14.76
20/8/2009 516078 JUMBO BAG LT HITESH SHASHIKANT JHAVERI B 40849 42.45
20/8/2009 516078 JUMBO BAG LT HITESH SHASHIKANT JHAVERI S 43168 42.08
20/8/2009 532494 MICRO TECHN PR VYAPAAR PRIVATE LIMITED S 50921 128.62
20/8/2009 532724 MOUNT TRAD MUKUND MOTOR PARTS PVT LTD B 16731 434.02
20/8/2009 512449 PACE TEXTILES DIAMOND CREATIONS B 446415 62.55
20/8/2009 531726 PANCH ORGAN HIRAL CHANDRAKANT SHAH B 27000 12.98
20/8/2009 511702 PARSHART INV PRADEEP RAMPRASAD SANDHIR HUF B 20000 11.95
20/8/2009 511702 PARSHART INV GAURAV AERI S 20000 11.95
20/8/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PRIVATE LIMITED B 104533 47.85
20/8/2009 531952 RIBA TEXTILE NITABAEN SHAILESHBHAI PATEL S 50000 47.85
20/8/2009 531374 SAAG RR INFR SAAG MAURITIUS LTD S 150000 21.01
20/8/2009 512413 SPECTACLE VIVEK KISHANPAL SAMANT B 400000 42.11
20/8/2009 512048 SPLASH MEDIA SUVIDHA SECURITIES PVT LTD B 13750 132.00
20/8/2009 512048 SPLASH MEDIA RAJARAM KUNDLIK JADHAV S 13750 132.00
20/8/2009 523455 TECHTRAN POL RAHUL DOSHI S 75771 17.88
20/8/2009 532646 UNIPLY IND TARUNCHANDMAL JAIN S 65000 7.61
20/8/2009 532757 VOLTAMP TRAN OPG SECURITIES P LTD B 57760 844.14
20/8/2009 532757 VOLTAMP TRAN OPG SECURITIES P LTD S 57760 844.79
20/8/2009 531249 WELL PACK PA PANDYA HARDIK M B 25496 172.58
20/8/2009 531249 WELL PACK PA PANDYA HARDIK M S 24401 173.21
20/8/2009 522108 YUKEN INDIA BINA S VORA B 20131 85.50
20/8/2009 522108 YUKEN INDIA FAIRDEAL INFIN SERVICES PVT. LTD. S 25137 81.89
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
20-AUG-2009,3IINFOTECH,3i Infotech Limited,TRANSGLOBAL SECURITIES LTD.,BUY,977842,82.21,-
20-AUG-2009,EXCELINFO,Excel Infoways Limited,MANSUKH SECURITIES & FINANCE LIMITED,BUY,135836,94.89,-
20-AUG-2009,FSL,Firstsource Solutions Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,2158944,33.89,-
20-AUG-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,4335708,52.48,-
20-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,8789596,21.77,-
20-AUG-2009,PONNIERODE,Ponni Sugars (Erode) Limi,SANGAMESHWAR HOLDINGS LTD,BUY,100000,81.30,-
20-AUG-2009,VOLTAMP,Voltamp Transformers Limi,ROYCE MICRO CAP FUND,BUY,56000,836.30,-
20-AUG-2009,ZENSARTECH,Zensar Technologies -Depo,HILLTOP HOLDINGS INDIA LTD.,BUY,300000,189.60,-
20-AUG-2009,3IINFOTECH,3i Infotech Limited,TRANSGLOBAL SECURITIES LTD.,SELL,973342,82.27,-
20-AUG-2009,EXCELINFO,Excel Infoways Limited,MANSUKH SECURITIES & FINANCE LIMITED,SELL,134838,94.21,-
20-AUG-2009,FSL,Firstsource Solutions Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1961493,33.86,-
20-AUG-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,4335708,52.39,-
20-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,8130166,21.76,-
20-AUG-2009,PONNIERODE,Ponni Sugars (Erode) Limi,PATERSON SECURITIES PRIVATE LIMITED,SELL,100000,81.30,-
20-AUG-2009,ZENSARTECH,Zensar Technologies -Depo,PEDRIANO INVESTMENTS LTD,SELL,300000,189.60,-
Shanghai claw back some losses while Sensex, Hang Seng follows with strong gains
Stock market in Asian region took a hop on Thursday, 20 August 2009; as China's wobbling market clawed back some of its steep losses and oil prices jumped on signs of improving demand. However, stocks around the region oscillated wildly as many investors were nervous that the Shanghai slide might have more room to run.
On Wall Street, crude oil rose more than $3 a barrel and energy stocks led a reversal in U.S. markets Wednesday after a report showed demand for crude and gasoline may be on the up tick. The major indices recovered from what started out as a down day, and the Dow Jones Industrial Average ultimately gained 61.22 points, or 0.7%, to 9279.16, while the S&P 500 added 6.79 points, or 0.7%, to 996.46. The Nasdaq Composite gained 13.32 points, also 0.7%, to 1969.24.
According to the latest weekly report from the Energy Information Administration, crude oil stockpiles decreased unexpectedly by 8.4 million barrels, or 2.4%, v/s. expectations for a 1.1 million-barrel build. Gasoline supplies also decreased more than expected, by 2.1 million barrels, or 1%, which indicates demand for energy, which means things are ramping up, which suggests growth. Crude rose $3.23 to $72.42 after that report.
In the commodity market, crude oil traded little changed near $72 a barrel after a government report showed U.S. inventories declined the most in 15 months as imports tumbled and refineries increased operating rates.
Crude oil for September delivery traded down 13 cents at $72.29 a barrel on the New York Mercantile Exchange at 10:17 a.m. London time. Yesterday, the contract closed up $3.23, or 4.7%, at $72.42, the highest settlement since 11 June 2009. The September contract expires today. The more-active October contract was at $73.53 a barrel, down 30 cents, at 10:10 a.m. London time.
Brent crude oil for October settlement fell 26 cents, or 0.4%, to $74.33 a barrel on the London-based ICE Futures Europe exchange at 9:16 a.m. local time.
Gold advanced for a third day after Asian stocks rose ahead of the release of data that is expected to point to a recovery in global economies. Gold for immediate delivery rose as much as 0.4% to $945.53 an ounce and traded at $943.13 at 12:45 p.m. in Singapore.
In the currency market, US dollar and yen pulled back sharply overnight following sharp rebound in commodities and subsequent energy led stocks rebound. Both currencies are still soft today on follow through rebound in Asian stock markets.
The Japanese yen softened against greenback and euro as a rebound in Chinese stocks allayed concerns that the global economic recovery is faltering, encouraging investors to buy higher-yielding assets. The Japanese yen was quoted at 94.34 per greenback, while 134.16 per euro on Thursday.
The Hong Kong dollar was trading at HK$ 7.7510 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 rose as firmer stocks in Asia, especially those in key trading partner China, underpinned demand for riskier assets. The Aussie ended the local trading day at $US 0.8310, up from $US 0.l8208 on Wednesday.
In Wellington trade, the New Zealand dollar fell sharply against the greenback overnight in the wake of a slide in the Shanghai stock market, but then zoomed up out of its hole. By 8am today the kiwi was buying US 67.44 cents, having dipped to around US 66.65 cents shortly after midnight, from US 67.57 cents at 5pm yesterday.
The South Korean won closed at 1,246.9 won against the greenback, up 8.9% from Wednesday's close, as investors shed risk-averse sentiment.
The Taiwan dollar strengthened against the greenback. The Taiwan dollar gain against the US dollar as it was trading higher at NT$ 32.9510, up by NT$ 0.0610 from Wednesday’s close of NT$33.0100.
Coming back in equities, most of the Asia stocks ended higher following the a big rebound staged by Chinese stocks, recouping their hefty losses from the previous session as they remained confident about earnings and economic growth prospects in spite of a sharp recent correction.
Most other regional markets ended higher as well, with energy producers getting a lift after crude-oil prices topped $72 a barrel, though Taiwanese shares lost ground on concerns about a cabinet reshuffle.
In Japan, the shares market recouped from three-week closing low hit yesterday on broad based bottom fishing, boosted by strong finish of Wall Street overnight, stronger commodity prices, and on rise in Shanghai stocks. Oil developers, trading houses led the rally after crude futures surge overnight. Shares of materials and resources spurted on the back of firmer base metal prices. Shares of blue chip companies such as Canon, Toyota and other automakers after brokerages houses upgraded rating for the sector.
At the closing bell, the Nikkei 225 Stock Average index rose 179.41 points, or 1.76%, to 10,383.41, meanwhile the broader Topix index climbed up15.34 points, or 1.63% to 958.59.
On the economic front, the Japan Iron and Steel Federation said that Crude steel output in Japan dropped 24.9% in July from a year earlier to 7.66 million tons, down from year-before levels for the 10th straight month due to weak demand amid the global economic slowdown. But the pace of decline became slower for the fourth month in a row, as production at auto and electronics makers has begun to pick up, an industry body said.
In Mainland China, share market rebounded after benchmark index briefly entered a so-called bear market yesterday, boosted by broad based bottom fishing among energy, materials, and industrials shares after crude oil and metal prices bounced overnight and rekindled recovery sign. Banks and properties spurted on sign of government support for the sliding stock market. Meanwhile better than expected earning from ZTE Corp also supported the rally.
At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, advanced 126 points, or 4.52% to 2,911.58, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, bounced 4.31%, or 129.82 points to 3,144.39.
On the economic front, the State Administration of Foreign Exchange said that China current account surplus of $130 billion in the first half of 2009, down 32% on year.
In Hong Kong, benchmark index rebounded from one month closing low in the previous session on tracking a rebound in Chinese peers on signs of regulatory support, with higher commodity prices. Investors hunted for bargains after the market's recent steep slide. The Hang Seng Index spurted 374.63 points, or 1.88%, to 20,328.86, while the Hang Seng China Enterprise surged 258.01 points, or 2.29%, to 11,518.84.
In Australia, the stock market pared gains to finished the session edge higher as a weak outlook from conglomerate Wesfarmers and lower than expected earning from stock exchange operator ASX offset early gains inspired from positive finish of Wall Street overnight, stronger commodity prices and generally upbeat earnings results Bramble’s. At the closing bell, the benchmark S&P/ASX200 index rose 3.70 points, or 0.08%, to 4,377.5, meanwhile the broader All Ordinaries added 3.8 points, or 0.09%, to 4,391.3.
On the economic front, the Australian Bureau of Statistics said that Australia’s July merchandise imports increased by 6% to A$16.698 billion over the revised figure for June2009. The preliminary balance of payments increased by 4% or a seasonally adjusted A$678 million compared to the month before.
The Reserve Bank of Australia said in the statement that Australians spent A$19.365 billion on their credit and charge cards in June2009, an increase of 9.19% from the previous month and the highest monthly total in 2009. The value of all purchases rose 8.94% to A$18.397 billion, the highest monthly total this year, while cash advances were up 14.19% at A$998 million.
In New Zealand, stock market ended down in line with most of the Asian markets that were trading lower. The NZX50 was down 0.91% or 27.94 points to 3053.11. The NZX 15 declined 0.96% or 54.47 points to close at 5618.97.
In South Korea, stocks closed higher as rebounding global shares cheered investor confidence. The benchmark Korea Composite Stock Price Index (KOSPI) advanced 30.43 points to 1,576.39.
In Singapore, the stock market spurted with broad based buying across the sector, with the positive sentiment from Wall Street's overnight and stronger commodity prices and the mood was further supported by a sharp rebound in Chinese equities. Banks and properties shares led the rally. Meanwhile multi industries, construction, and manufacturing shares in line with market rally. The blue chip Straits Times Index jumped 36.79 points, or 1.46%, to 2,559.39.
In Taiwan, stock market tanked on Thursday ending the session at five weeks low, as Premier Liu Chao-shiuan has announced a major reshuffle in the Cabinet by early September in the aftermath of the deluge triggered by typhoon Morakot.
The benchmark Taiex share index continued losing for the fourth session as it ended the session lower by 55.35 points or 0.82% in a day, closing the day at 6733.23, lowest closing since 13 July 2009 when market closed the day at 6530.82.
In Philippines, the stock market overturned yesterday’s gain closing lower; as investors engaged themselves in profit taking activities amid the flimsy economic prospects, which points that difficulties stands ahead for Philippines economy. The National Economic and Development Authority (NEDA) projection of GDP showed a marked deceleration. At the final bell, the benchmark index PSEi lost 1.47% or 40.71 points to 2,720.18, while the All Shares index fell 1.20% or 21.34 points to 1,744.29.
In India, volatility struck bourses as the key benchmark indices trimmed strong intraday gains. The BSE 30-share Sensex was up 202.68 points or 1.37% to 15,012.32. The S&P CNX Nifty was up 59.35 points or 1.35% to 4,453.45.
On the economic front, inflation based on the wholesale price index (WPI) declined 1.53% in the year through 8 August 2009; government data released today, 20 August 2009 showed. The decline was lower than the previous week's annual fall of 1.74%. It was the tenth consecutive fall in the headline inflation.
Elsewhere, Malaysia's Kula Lumpur Composite index went up 0.68% or 7.90 points to 1163.43 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2328.64.
In other regional market, European shares rose for the second time in a choppy week, with oil producers and miners getting a boost from commodity price moves and Ahold and Holcim up on forecast-beating results. On a regional basis, the U.K. FTSE 100 index climbed 1.3% or 60.85 points to 4,751, the German DAX index advanced 1.33% or 69.40 points to 5,301 and the French CAC-40 index rose 1.44% or 49.68 points to 3,500.
Firm global stocks helped Indian stocks edge higher in what was a volatile trading session. The barometer index BSE Sensex regained the psychological 15,000 level within a day after falling below that mark on Wednesday, 19 August 2009. The BSE 30-share Sensex jumped 202.68 points or 1.37%, off 132.68 points from the day's high and up 84.14 points from the day's low. But the upmove was on the back of lower turnover.
As per provisional data, foreign funds today, 20 August 2009, sold stocks worth a net Rs 438.19 crore. Domestic funds bought equities worth a net Rs 489.42 crore
Stocks rose across the globe led by a near 5% rally in China's Shanghai Composite index. Closer home, auto, metal, and banking sector stocks hogged limelight. All sectoral indices on BSE logged gains. Adani Power settled at Rs 100.05 on BSE, a marginal premium to its the initial public offer (IPO) price of Rs 100 per share.
Index heavyweight L&T came sharply off the higher level in late trade soon after global rating agency Moody's cut its rating outlook on the stock
from stable to negative.
Intraday volatility on the bourses was high today, 20 August 2009. The BSE Sensex today regained the psychological 15,000 mark as the market surged in early trade on firm global stocks. After an initial surge, the market cooled off a bit in morning trade. It firmed up again later. The market witnessed alternate bouts of rallies and profit taking after the barometer index surged to the day's high in mid-morning trade.
The Sensex struck a fresh intraday high in mid-afternoon trade on media reports that the monsoon deficit has narrowed. A sharp slide was witnessed shortly as index heavyweights Reliance Industries (RIL), L&T and ICICI Bank pared intraday gains. The barometer index alternatively moved above and below the psychological 15,000 mark in late trade. It ended the day above that mark.
The cumulative rainfall deficit in the country has reportedly narrowed to 27% during the period from 1 June 2009 to 18 August 2009 from 29% during the period from 1 June 2009 to 12 August 2009. Annual monsoon rains, running between June to September, are the main source of irrigation for farms and are crucial for Asia's third-largest economy as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
Prime Minister Manmohan Singh recently said that India is equipped to handle a widespread drought as there is room for several fiscal steps to cushion the impact of a dry spell.
Inflation based on the wholesale price index (WPI) declined 1.53% in the year through 8 August 2009, government data released today, 20 August 2009 showed. The decline was lower than the previous week's annual fall of 1.74%. It was the tenth consecutive fall in the headline inflation. However, the falling headline inflation is only due to a statistical effect caused by sharply higher prices a year earlier and consumer price inflation remains high.
European markets were trading firm today, 20 August 2009 led by commodity shares. Key benchmark indices in UK, Germany and France were up by between 1.23% and 1.39%.
Asian markets advanced today, 20 August 2009 on overnight gains in US stocks, with China's Shanghai Composite advancing 4.52%. Chinese market rallied on reports that the stock market regulator had approved new mutual funds this week to help underpin the market that has slid nearly 20% since hitting a 14-month high earlier in the month.
Key benchmark indices in Honk Kong, Singapore, Japan and South Korea were up by between 1.46% and 1.97%. However, the Taiwan Weighted index slipped 0.82%.
US markets recovered from intra-day lows and ended higher on Wednesday, 19 August 2009 after a surprise drop in crude inventories, which sent oil prices and energy stocks soaring. The Dow Jones industrials gained 61.22 points, or 0.7%, to 9,279.16. The S&P 500 index rose 6.79 points, or 0.7%, to 996.46. The Nasdaq Composite Index added 13.32 points, or 0.7%, to 1,969.24.
The data on New York-based Conference Board's index - an index of US leading economic indicators is due to be released in the US today, 20 August 2009. Survey estimates range from gains of 0.1% to 1%. An increase would mark the first time the index has climbed for four straight months since 2004.
Meanwhile, the US Labor Department will also announce the weekly jobless claims. Both these data may signal the deepest recession since the Great Depression is nearing an end.
US crude for September 2009 delivery was down 14 cents at $72.28 a barrel today, 20 August 2009. It had advanced $3.23 a barrel or 4.7% to $72.42 on Wednesday, 19 August 2009 buoyed by industry data showing a steep drop in crude imports and stockpiles in top consumer the United States.
US crude stockpiles plunged by a whopping 8.4 million barrels in the week to 14 August 2009, way ahead of analysts' forecasts for a 1.3 million barrels as imports dropped to the lowest level since September 2008 and refiners hiked runs, data from the US Energy Information Administration showed on Wednesday, 19 August 2009.
Trading in US index futures showed the Dow could rise 23 points at the opening bell on Thursday, 20 August 2009.
Closer home, India has attracted foreign direct investment (FDI) worth $2.58 billion in June 2009, an 8% increase over the same month last year, data showed on Wednesday, 19 August 2009. FDI inflow in April and May 2009 were $2.34 and $2.2 billion respectively, as compared with $3.74 and $3.9 billion in the corresponding period last year.
The BSE 30-share Sensex gained 202.68 points or 1.37% to 15,012.32. The barometer index advanced 335.36 points at the day's high of 15,145 in mid-afternoon trade. The Sensex gained 118.54 points at the day's low of 14,928.18 in early trade.
The S&P CNX Nifty was up 59.35 points or 1.35% to 4453.45. Nifty August 2009 futures were at 4449.90 at a discount of 3.55 points as compared to the spot closing.
Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 5365.01 points or 55.61% in calendar year 2009 as on 20 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 6851.92 points or 83.96% as on 20 August 2009. FII inflow in calendar year 2009 totaled Rs 36633.10 crore (till 18 August 2009).
Turnover on the bourses was lower today, 20 August 2009. The BSE clocked a turnover of Rs 3870 crore, lower than Rs 5320 crore on Wednesday, 19 August 2009. Turnover on NSE's futures & options (F&O) segment slipped sharply to Rs 61,882.96 crore, from Rs 82,896.50 crore on Wednesday, 19 August 2009.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1524 shares advanced as compared with 1171 that declined. A total of 77 shares remained unchanged.
The BSE Mid-Cap index was up 0.8% to 5,477.39 and the BSE Small-Cap index rose 0.82% to 6,360.27. However, both the indices underperformed the Sensex.
The the BSE Consumer Durables index (up 1.66%), the BSE Bankex (up 1.85%), the BSE IT index (up 1.58%), the BSE Metal index (up 1.39%), the BSE Auto index (up 2.60%), the BSE Power index (up 1.67%), the BSE Realty index (up 1.55%), outperformed the Sensex.
The BSE Teck index (up 1.05%), the BSE Healthcare index (up 0.29%), the BSE Capital Goods index (up 1%), the BSE FMCG index (up 0.55%), the BSE Oil & Gas index (up 0.99%), the BSE PSU index (up 1.31%), underperformed the Sensex.
Among the 30-member Sensex pack, 27 advanced while only 3 of them slipped. All the top three gainers from the Sensex pack were from the auto sector.
Auto stocks rallied after cumulative monsoon rainfall deficit in the country reduced. Auto companies derive a substantial revenue from rural India. India's largest tractor marker by sales Mahindra & Mahindra advanced 4.89% to Rs 777 and was the top gainer from the Sensex pack.
India's largest car market by sales Maruti Suzuki India shot up 4.83%. India's largest bike marker by sales Hero Honda Motors gained 4.26%. However, India's largest truck marker by sales Tata Motors slipped 0.51% to Rs 427.40 on profit booking after striking day's high of Rs 442.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) was up 0.57% to Rs 1894.20. The stock came off day's high of Rs 1925.90. A high-powered panel set up by the Prime Minister to monitor the government's stand in the Ambani gas tussle reportedly met on Wednesday. The agenda of the ministrial panel meet is to arrive at a uniform stand in the Reliance Industries and Reliance Natural Resources (RIL-RNRL) case and the NTPC-RIL case.
The dispute between Reliance Industries and Reliance Natural Resources (RNRL) 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. NTPC-RIL case also deals with price and supply of gas to NTPC's power plants from RIL.
Oil exploration stocks rose following a nearly 5% rise in crude oil on Wednesday, 19 August 2009. India's largest state-run oil exploration firm by sales ONGC advanced 1.58%. India's largest private sector oil exploration firm by sales Cairn India moved up 2.86%. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.
Shares of public sector oil marketing companies (OMC's) fell as higher crude oil price will results in under recoveries on fuel sales. BPCL (down 0.89%), HPCL (down 0.32%), declined. However, Indian Oil Corporation (IOC) rose 0.59%.
State-run oil marketing companies have to sell oil products at government-mandated prices. The refiners are partly compensated for the losses by the government through special oil bonds and partly by upstream companies like ONGC and GAIL (India) through discounts on crude oil.
Airline stocks rose on reports the government is looking at allowing them to import jet fuel on their own. King Fisher Airlines (up 1.44%) and SpiceJet (up 4.20%) rose. However, Jet Airways was down marginally by 0.10%
Import of jet fuel under the open general licence (OGL) would allow airlines to avoid paying high sales tax levied by state governments varying from 12% to 23% report said.
Bank stocks rose. India's biggest bank in terms of branch network State Bank of India (SBI) vaulted 3.60%. O P Bhatt, Managing Director of State Bank of India said on Wednesday 19 August 2009, the bank hopes to maintain 40% growth in net profit in the year ending March 2010. He also ruled out rights issue by the bank in the near future.
Bhatt added that he does not see any possibility of interest rates going up till October or November. In fact, interest rates may decline by 25-50 basis points between now and the busy Diwali season, Bhatt added.
India's largest private sector bank by net profit ICICI Bank rose 0.32% to Rs 719. But the stock came off the day's high of Rs 737.
India's second largest private sector bank in terms of operating income HDFC Bank rose 2.34%.
India's largest mortgage lender by total income Housing Development Finance Corporation was up 1.10%. After trading hours, HDFC announced the pricing and terms of a simultaneous issue of equity warrants and non-convertible debentures to qualified institutional buyers. HDFC is raising Rs 4000 crore from the issue.
HDFC said each warrant is priced at Rs 275, with a right exercisable by the warrant holder to exchange each warrant with one equity share of face value of Rs 10 each, any time before the expiry of a period of 3 years from the date of its allotment, at a warrant exercise price of Rs 3,000 per equity share. The issue price of Rs 275 per warrant is neither adjustable with the warrant exercise price nor refundable by the company.
Metal shares gained on bargain hunting after a recent correction in prices. Tata Steel (up 1.64%), Steel Authority of India (up 0.94%), Hindustan Zinc (up 1.06%), and JSW Steel (up 1.24%), rose. LMEX, a gauge of six metals traded on the London Metal Exchange, declined 1.48% on Wednesday, 19 August 2009.
India's largest copper producer Sterlite Industries rose 1.15% to Rs 617.55, recovering from a low of Rs 601 hit in early trade. Sterlite has hiked its bid for acquiring bankrupt US copper miner Asarco.
Sterlite has offered $2.2 billion to Asarco matching its bid with rival Grupo Mexico. The company made this announcement before market hours today, 20 August 2009. This is for the second time in less than 10 days that Sterlite has increased the cash component for the bankrupt US miner.
IT stocks rose on reports Bombardier, the world's third biggest aircraft maker, has invited tech vendors to bid for an outsourcing contract potentially worth up to $200 million over next few years. Overnight gains in American depository receipts (ADR) also aided early gains. India's second largest IT firm by sales Infosys rose 2.22% after its ADR rose 0.42%. As per reports the company has bid for at least 10 large government projects as part of a drive to lower its dependence on the US market.
India's third largest IT exporter by sales Wipro rose 2.30% after its ADR rose 0.54%. India's largest IT exporter by sales TCS gained 0.20%.
Second line software stocks also joined the rally on momentum buying. Rolta India (up 0.28%), Mastek (up 3.86%), Patni Computers (up 0.43%), Polaris (up 1.39%), Tech Mahindra (up 2.06%), and 3i Infotech (up 8.45%), rose.
Allied Digital Services rose 0.46% after the company said its board will meet on 28 August 2009 to consider stock split. The company announced the board meet during trading hours today, 20 August 2009.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) ended almost unchanged at Rs 1482. But the stock came off day's high of Rs 1518 after the global rating agency Moody's cut its rating outlook on the company to negative from stable. Moody's said outlook change on Larsen & Toubro (L&T)'s BAA2 rating reflects increase in consolidated debt.
India's largest cellular services provider by sales Bharat Airtel slipped 1.41% to Rs 399, off day's high of Rs 411. It was the top loser from the Sensex pack. Bharti Airtel and South Africa's MTN Group have extended until 30 September 2009 their exclusive talks aimed at merging their operations to create the world's third-largest mobile operator, Bharti said during trading hours today, 20 August 2009.
The two companies - Bharti and MTN said in separate but similar statements that discussions continued to progress satisfactorily, though no decision had yet been taken to acquire any shares or implement the potential transaction.
India's second largest cellular services provider by sales Reliance Communications (RCom) jumped 2.25% on reports it is in talks with Mobile Telecommunications Company K.S.C., known as Zain, for a potential acquisition of its African operations. Zain is selling Celtel, the division that is present in 13 nations in the continent, valued at $10 billion. Zain acquired Celtel in 2005 for $3.36 billion.
Construction, capital goods and cement shares rose as higher government spending on infrastructure sector in 2009-2010 to a provide a stimulus to the economy may result in increase order flow for construction and capital goods firms and may help boost cement demand. Among construction shares, IVRCL Infrastructure & Projects (up 0.38%), Hindustan Construction Company (up 3.22%), Punj Lloyd (up 2.18%), Nagarjuna Construction Company (up 1.97%), gained.
Bidding is expected to start soon on 139 road projects covering 14,395 kilometres at a cost of about US$ 21 billion.
Other capital goods stocks, Bharat Heavy Electricals (up 1.61%), BEML (up 0.12%), ABB (up 4.17%), Siemens (up 3.58%), advanced.
From the cement pack, UltraTech Cement (up 1.31%), India Cement (up 0.83%), Grasim Industries (up 2.62%), ACC (up 0.06%), and Ambuja Cements (up 2.64%), rose
Rate sensitive realty shares rose on reports prominent realty firms Lodha Group and Oberoi Construction have filed a draft red herring prospectus (DRHP) with the Securities & Exchange Board of India (Sebi) for raising funds through an initial public offer (IPO). Unitech (up 2.55%), DLF (up 0.78%), Omaxe (up 1.80%), Indiabulls Real Estate (up 2.49%), HDIL (up 0.28%), gained.
India's largest pharma company by market capitalisation Sun Pharmaceuticals gained 1.44% on reports of a faourable court ruling. As a result, the company will now be able to launch a low cost version of the drug of a block buster drug in the US by November 2010.
Unichem Laboratories rose 1.12% on reports the company's overseas unit Unichem Pharma has received an approval from US Food & Drug Administration (US FDA) for its abbreviated new drug application (ANDA) for Bisoprolol Fumarate tablets, a widely subscribed molecule in the anti-hypertensive category.
Shares of Adani Power settled at Rs 100.05, a marginal premium over initial offer price of Rs 100 per share. The counter saw high volume of 9.64 crore shares on BSE. The stock debuted at Rs 105, a premium of 5% over its issue price. The stock moved in a band of Rs 98.50 and Rs 107.90 so far in the day.
Adani Power was the top traded counter on BSE with turnover of Rs 976.50 crore followed by Reliance Industries (Rs 117.13 crore), Aban Offshore (Rs 105.15 crore), IFCI (Rs 96.92 crore) and Tata Steel (Rs 96.85 crore).
IFCI clocked the highest volume of 1.85 crore shares on BSE. Suzlon Energy (95.66 lakh shares), Unitech (90.78 lakh shares), Ispat Industries (88.47 lakh shares), and GVK Power & Infrastructure (42.48 lakh shares) were the other volume toppers in that order.
Gujarat NRE Coke rose 5.34%. The largest independent producer of low ash metallurgical coke is slated to more than double its total annual mining capacity to 2.5 million tonnes, as per media reports. Meanwhie, it is commissioning its longwall mining at its Australian mine operated through its subsidiary called Gujarat NRE Mineral (GNML). Longwall mining is high-end mining process that increases the productivity of coal mining.
Hanung Toys & Textiles rose 4.99% after the company said its board of directors will meet on 22 August 2009 to consider issue of shares up to $50 million. The company announced the fund raising plans after market hours on Wednesday, 19 August 2009.
Overnight gains in the US markets and a sharp rise in several Asian indices in the ongoing trading session may help the domestic indices rebound from yesterday's losses. However, the market may exhibit caution owing to lack of clarity, higher volatility. Among the indices, the Nifty could test higher levels at 4450 and 4520, and has a supports at 4350. The Sensex has a likely support at 14600 and may face resistance at 14932.
US indices bounced back sharply bounced on Wednesday, fighting back from early losses, as investors scooped up oil and other commodity shares following a nearly 5% rally in crude prices. While the Dow Jones flared up by 61 points at 9,279, the Nasdaq moved up by 13 points at 1,969.
Most of the Indian ADRs traded firm on the US bourses. Patni Computers led the pack with gains of 4.28% while VSNL, Infosys, Wipro, Dr Reddy, ICICI Bank and MTNL gained marginally. However, Satyam, Tata Motors, Rediff and HDFC Bank slipped around 1-2% each.
Crude oil prices edged higher, the US light crude oil for September delivery moved up by $3.23 at $72.42 a barrel. In the commodity segment, the Comex gold for December delivery advanced by $5.60 to settle at $944.80 an ounce.
Market is likely to start on a firm note supported by positive global cues. The SGX Nifty futures for August 2009 expiry jumped 43 points in Singapore. However, scanty rains, crucial for India's domestic demand driven economy and continued fall in exports may cap gains. Investors will keenly watch data on the wholesale price index (WPI) for 12 months to 8 August 2009 which will be announced by the government today, 20 August 2009. Also the listing of Adani Power will be closely watched.
Most Asian markets were trading higher today, 20 August 2009 after crude oil prices rallied and positive cues from Wall Street. Key benchmark indices in China, Honk Kong, Singapore, Japan and South Korea were up by between 0.60% and 2.10%. However Taiwan's Taiwan Weighted index slipped 1.52%.
US markets recovered from intra-day lows and ended higher on Wednesday, 19 August 2009 after a surprise drop in crude inventories, which sent oil prices and energy stocks soaring. The Dow Jones industrials gained 61.22 points, or 0.7%, to 9,279.16. The S&P 500 index rose 6.79 points, or 0.7%, to 996.46, while the Nasdaq Composite Index added 13.32 points, or 0.7%, to 1,969.24.
Back home, the action is likely to shift to primary market in the near futures as the government reportedly plans to sell stakes in at least six to seven more state-run firms in the next 12-14 months after a strong response to the initial public offering of NHPC recently. 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.
Meanwhile the Adani Power will debut on the stock exchanges today, 20 August 2009. The company's initial public offering (IPO) raised nearly Rs 3,000 crore through the issue and the IPO price is fixed at the upper band of Rs 100 per share. The issue which closed on 31 July 2009, was oversubscribed 22 times. The listing is important as it will set the tone for other companies looking to raise funds through IPO
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 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.
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, 18 August 2009. 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.
As per the provisional figures on NSE, foreign funds sold shares worth Rs 622.06 crore and domestic funds bought shares worth Rs 83.77 crore on Wednesday, 19 August 2009.
We recommend a sell in the stock of New Delhi Television from a short-term perspective. It is apparent from the charts that the stock has been on a medium-term uptrend from its July low of Rs 104. However, the stock encountered resistance (June peak) around Rs 185, which is also a key long-term resistance level, and reversed direction. This reversal was also triggered by a negative divergence displayed in the daily relative strength index (RSI). Moreover, on August 19, the stock slipped almost 6 per cent, reinforcing its decline. The daily RSI has entered the neutral region from the bullish zone and weekly RSI is also featuring in the neutral region. We also notice that the daily price rate of change indicator is showing negative divergence signalling bearishness. We are bearish on the stock from a short-term perspective. We anticipate the stock’s decline to prolong until it hits our price target of Rs 145. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 170.
Prices rise as crude inventories drop unexpectedly
Crude prices shed earlier losses and ended substantially higher on Wednesday, 19 August, 2009. Prices rose as energy department reported an unexpected drop in crude inventories for last week. Market was expecting a build up in crude inventories.
On Wednesday, crude-oil futures for light sweet crude for September delivery closed at $72.42/barrel (higher by $3.23 or 4.7%). During intra day trading, crude fell to an intra day low of $69.45/barrel before the EIA data. 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 50% since then. Year to date, in 2009, crude prices are higher by 49%.
The Energy Information Administration reported today that crude stocks fell by 8.4 million barrels to 343.6 million barrels during the week ended 14 Aug, 2009. Market was expecting a build up to the tune of 1.5 million barrels. The EIA also reported that motor gasoline inventories fell by 2.1 million barrels and distillate stocks decreased by 700,000 barrels.
In the currency market on Tuesday, the dollar index which weighs the value of dollar against a basket of six other currencies, fell by 0.4%.
Also at the Nymex on Wednesday, September reformulated gasoline rose 3.44 cents, or 1.7%, to end at $2.0346 a gallon. September heating oil gained 5.37 cents, or 2.8%, to finish at $1.9187 a gallon.
Natural-gas futures rebounded from 7-year low today. September natural-gas futures added 2.30 cent to end at $3.119 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 144 (4.2%) at Rs 3,595/barrel. Natural gas for August delivery closed higher by Rs 0.3 (0.19%) at Rs 153.3/mmbtu.
Sterlite ups Asarco bid to US$2.2bn. (ET)
Oil ministry to support NTPC in its legal battle to get natural gas from Reliance Industries at prices committed in 2004. (BS)
Infosys has bid for 10 large government projects in India. (FE)
NTPC has not yet decided on filing a petition in Supreme Court on its dispute with Reliance Industries. (FE)
HDFC unlikely to dilute stake in HDFC Bank before National Housing Bank deadlines. (ET)
IOC may post higher refining margins in Q2 FY10. (BL)
Maruti Suzuki is expecting a double digit growth in the next few months. (ET)
Sun Pharma wins US court ruling in Eli Lilly patent challenge. (BS)
Government is not considering any further dilution in Nalco and Hindustan Copper. (BS)
Jaiprakash Hydro to raise Rs15bn via stake sale or issue of securities. (ET)
Apollo Tyres plans to hike tyre prices. (BL)
Asian Paints 100% subsidiary Berger International to divest its stake in the Malaysian arm. (BL)
Glenmark Pharmaceuticals first prospective drug molecule Oglemilast has been shelved. (BL)
MIC Electronics to raise Rs2bn. (BL)
PSL bags Rs2bn order from GAIL. (BL)
Tata Docomo open to buy new players in India. (BL)
Trianz Inc to acquire Megasoft’s US arm Blue Ally for US$13-15mn. (BL)
Videocon launches DG Home concept stores. (BL)
RPG to invest Rs1bn in Spencers. (BL)
Panacea Biotech has bagged a US$223mn order from UNICEF. (ET)
Sahara plans to tap capital markets with US$1bn IPO for realty arm. (ET)
Docomo may raise stake in Tata Teleservices from the current 26%. (BS)
ITC to launch new products in stationery business. (BS)
Private airlines would be allowed to import jet fuel on their own to avoid high sales tax ranging from 12-34% levied by state governments. (ET)
Sugar stocks cap set to force food and beverages firms to import. (ET)
India’s June FDI inflows at US2.58bn, up 8%. (ET)
The thing always happens that you really believe in; and the belief in a thing makes it happen.
All of a sudden, China seems to be hogging quite a bit of limelight with the dirty word “bubble” being associated with its stock market. On Wednesday, the Shanghai Composite slipped into the so-called official bear market territory. Today, the benchmark Chinese index is up though, and so are other key Asian markets. Merrill Lynch says China’s stocks are set to rebound from this month’s plunge. Whether that happens or not only time will tell. Don’t get too carried away by any major movements in stocks, be it China or India or any other market. After a strong rally over the past few months, any market is bound to turn volatile.
We expect a higher opening purely on the basis of positive global cues. The early gains may not sustain though amid worries over drought and its negative fallout. Valuations do not appear to be compelling either, especially in large caps. Small-caps and Mid-caps are risky at this stage but then there are proportionate gains to be made too. In short, we are in for a sideways trend with no clear bias.
FIIs were net sellers at Rs6.22bn in the cash segment on Wednesday on a provisional basis while the local funds pumped in Rs837.7mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs3.31bn.
US stocks rose on Wednesday, reversing early losses, as investors snapped up oil and other commodity shares following a nearly 5% rally in crude.
The Dow Jones Industrial Average gained 61 points, or 0.7%. The S&P 500 index added 7 points, or 0.7%. The Nasdaq Composite advanced 13 points, or 0.7%.
US stocks slumped in early trades, but managed to trim losses. A spike in oil prices and the underlying stocks helped drive the rise after the Energy Information Administration reported a surprise drop in crude inventories.
Wall Street had rallied on Tuesday after Home Depot's earnings report and forecast reassured investors worried about consumer spending. But trading volume was light, even for late summer, which traders say suggests little conviction on the part of buyers. Light volume also makes stocks more volatile.
The nearly five-month rally has hit a roadblock over the last few sessions amid concerns that any economic recovery will be a gradual one. While recent reports show manufacturing and housing are starting to stabilize, consumer spending remains sluggish and unemployment continues to rise.
Market breadth was positive. On the New York Stock Exchange, winners topped losers three to two on volume of 988 million shares. On the Nasdaq, advancers beat decliners eight to five on volume of 1.99 billion shares.
Crude prices surged after the government's weekly inventory report showed a surprise drop in supplies. Energy shares in the S&P 500 climbed 1.9% collectively for the top gain among 10 groups after the government said oil stockpiles dropped 8.4 million barrels last week, the most since the week ended May 23, 2008.
US light crude oil for September delivery rose 4.7%, or $3.23, to settle at $72.42 a barrel on the New York Mercantile Exchange. Oil prices are up 62% this year.
A rally in crude prices gave a boost to oil stocks, including Chevron and Exxon Mobil. The Amex Oil index gained 1.6%.
After the close on Tuesday, Hewlett-Packard reported lower quarterly sales and earnings that topped analysts estimates. Mark Hurd, the company's CEO said business is stabilizing, but it is too soon to say the economy has turned a corner.
The tech leader also boosted its current-quarter earnings forecast and reiterated its full-year revenue forecast. Shares drifted lower Wednesday.
Among other movers, shares of Dow component Alcoa declined on a Goldman Sachs downgrade, according to reports. The brokerage cut its rating on the aluminum stock because it has surged sharply in recent weeks and industry conditions could deteriorate.
Drugmaker Merck's shares climbed 2.5% for the top advance in the Dow Jones Industrial Average after a federal judge said Teva Pharmaceutical Industries Ltd. can’t make a copy of its asthma drug Singulair.
US District Judge Garrett E. Brown Jr. in Trenton, New Jersey, rejected Teva’s arguments that the patent on the main ingredient of Singulair is invalid or unenforceable. The judge said Teva can’t sell a generic version of the medicine, which had 2008 sales of $4.3 billion.
Pfizer shares added 2.4%.
Asian markets tumbled, with the Chinese market losing 5% on worries about the economy. The Shanghai Composite has lost almost 20% in two weeks, a decline that is typically measured as a bear market.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.45% from 3.51% on Tuesday.
Gold rebounded as the dollar’s decline enhanced its allure as an alternative investment. Gold futures for December delivery gained $5.60, or 0.6 percent, to $944.80 an ounce in New York
The dollar dropped versus the euro as the rebound in US stocks eased investor demand for safety triggered by a tumble in Chinese shares. The yen and Swiss franc gained against currencies including the New Zealand dollar.
Pound sterling weakened versus the euro after minutes of the Bank of England’s policy meeting showed that Governor Mervyn King favored a bigger increase in asset purchases.
Reports on jobless claims, leading economic indicators (LEI) and manufacturing are all due on Thursday.
European markets tumbled through the morning, but ended the day in mixed territory. The pan-European Dow Jones Stoxx 600 index declined 0.4% to 226.26. Still, the index is showing a gain of nearly 10% for the quarter, after banks rallied more than 20% and miners jumped more than 8%.
Germany's DAX index fell 0.4% to 5,231.98 and the French CAC-40 index. index finished flat at 3,450.34. The UK's FTSE 100 index reversed earlier losses to finish up 0.1% at 4,689.67.
Indian markets ended in the red erasing previous day’s gains led by selling in the Oil & Gas, Metal, Auto and Power stocks. Markets cracked after Mainland China's top stock markets suffered their latest in a string of heavy falls Wednesday, with the Shanghai Composite Index closing down 4.3% and the Shenzhen Composite Index ending 4.9% lower. Resource companies were among the loss-leaders, with Jiangxi Copper Co. falling 7.6% and Yunnan Copper moving 7% lower.
A Dow Jones Newswires reported quoted a Southwest Securities analyst as saying that amid a lack of other market cues, a drop in global commodities had triggered the fall in Chinese shares. On Monday, the Shanghai Composite tumbled 5.8% -- its worst performance since November -- while the Shenzhen Composite dove 6.6%.
The BSE Sensex slipped 225 points or 1.5% at 14,809 after touching a high of 15,097 and a low of 14,684. The index opened at 15,079 against the previous close of 15,035. The NSE Nifty ended lower by 65 points to shut shop at 4,394.
In Asia, the Nikkei in Japan ended lower by 0.8% at 10,204 while Australia's S&P/ASX marginally slipped 0.2% at 4,373. The Hang Seng index in Hong Kong fell 1.7% at 19,954. Shanghai index in China declined 4.3% at 2,785.
In Europe, stocks were trading in red. The FTSE in the UK was down 0.9%. The DAX in Germany was down 1.2% and the CAC 40 index in France was down 0.8%.
Coming back to India, among the BSE sectoral indices, the Oil & Gas index was the top loser, losing 2.7%, followed by the Metal index that was down 2.3%. The BSE Auto index down 2.1% and the BSE Power index was down 2%.
The BSE Mid-Cap index lost 1.1% and the BSE Small-Cap index fell by 0.6%.
Within the Sensex, the major losers were ACC, Reliance Infra, RCom, Grasim, Tata Steel, M&M and Reliance Industries. Among the major gainers were HDFC, HDFC Bank and L&T.
Outside the frontline indices, the big losers in the broader market were Glenmark, Bharat Forge, Essar Oil, Balrampur Chini, RCF and Gujarat NRE Coke. On the other hand, gainers included Tulip Tele, IVRCL Infra, CESC, Bhushan Steel and GMDC.
Shares of Cipla erased early gains and ended lower by 2% to Rs259 after reports stated that the Delhi High Court dismissed German drug major Bayer Healthcare’s attempt to stop the drug regulator from giving marketing approval to Cipla for the generic version of Bayer’s patented cancer drug, Nexavar. The stock opened at Rs268 and made an intra-day high of Rs274 and a low of Rs257. Total traded volumes stood at 0.6mn shares.
Shares of Glenmark lost over 14% to Rs223 after Forest Laboratories, Inc. and Glenmark Pharmaceuticals SA Switzerland Once-daily treatment with Oglemilast did not show a statistically meaningful increase from baseline compared to placebo in the primary endpoint trough FEV1, a measure of pulmonary function that is decreased in patients with COPD.
Panacea Biotec was locked at 5% upper circuit to Rs174 after the Company received an award notification worth Rs10.67bn for supply of its EasyFive (pentavalent vaccine), from UNICEF for years 2010, 2011 and 2012.
EasyFive is world's first fully liquid pentavalent vaccine introduced in India by Panacea Biotec in January 2005, which immunizes children against five dreadful diseases (Diptheria, Tetanus, wholecellPertussis, Hepatitis B and Hemophilus Influenza Type b) of early childhood.
Shares of PSL Ltd gained by 2.5% to Rs145 after the company announced that it won order worth Rs2.1bn from Gail India. The stock opened at Rs142 and made an intra-day high of Rs148.5 and a low of Rs139. Total traded volumes stood at 0.4mn shares.
Shares of Sun TV erased early gains and fell 1% to end at Rs272. ~1.4mn equity shares of the company were transacted in a block deal. The shares were traded at an average price of Rs275 on the National Stock Exchange.
The stock opened at Rs280 and made an intra-day high of Rs281.9 and a low of Rs272. Total traded volumes stood at 1.46mn shares on NSE.
Megasoft announced that the board of directors approved the sale and transfer of the BlueAlly division as a "going concern" to Trianz Inc., US, which is a wholly owned subsidiary of Trianz Holdings Pvt Ltd, India.
The board of directors approved the price to be around US$13 to US$15mn. This is subject to the approval of the shareholders of the company.
Shares of Megasoft were locked at 20% upper circuit to end at Rs31.55. The stock opened at Rs26.7 and made an intra-day high of Rs31.55 and a low of Rs26.05. Total traded volumes stood at 2.9mn shares.
Precious metals once again end mixed
Yellow metal prices rose on Wednesday, 19 August, 2009. Prices rose following a sharp rise in crude oil price today and also the slipping dollar. But silver prices fell.
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 Wednesday, gold for December delivery ended at $944.8, higher by $5.6 (0.6%) an ounce on the New York Mercantile Exchange. During intra day trading, gold rose to a high of $946.8 and fell to a low of $933.3. 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 6.4%.
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 Wednesday, Comex silver futures for September delivery fell 8 cents (0.6%) to $13.88 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% 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 0.4%.
In the crude market on Wednesday, light sweet crude for September delivery surged $3.23, or 4.7%, to end at $72.42 a barrel on the New York Mercantile Exchange.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for October delivery closed higher by Rs 67 (0.45%) at Rs 14,937 per 10 grams. Prices rose to a high of Rs 15,010 per 10 grams and fell to a low of Rs 14,843 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 40 (0.17%) lower at Rs 22,898/Kg. Prices opened at Rs 23,000/kg and fell to a low of Rs 22,511/Kg during the day's trading.