Monsoon Impact - Aug 28 2009
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Friday, August 28, 2009
RIL September 2009 futures at discount
Turnover drops
Nifty September 2009 futures were at 4731 at a discount of 1.35 points as compared to the spot closing of 4732.35. Turnover in NSE's futures & options (F&O) segment was Rs 60,109.07 crore, sharply lower than Rs 91,809.58 crore on Thursday, 27 August 2009.
Reliance Industries (RIL) September 2009 futures were at discount at 2071.50 compared to the spot closing of 2074.10.
Unitech September 2009 futures were near spot price at 99.45 compared to the spot closing of 99.10.
IFCI September 2009 futures were near spot price at 55.05 compared to the spot closing of 55.25.
In the cash market, the S&P CNX Nifty rose 44.15 points or 0.94% at 4732.35.
Post Session Commentary - Aug 28 2009
The Indian market made smart recovery from day’s low to close with handsome gains due to fresh buying momentum emerged during late hours. All round buying contributed to the sharp rebound backed by strong cue from European markets. Positive US index futures also added to the northward journey. Benchmark indices were higher in early trade also on resurgence of monsoon rains. According to the Meteorological Department, monsoon rains were 5% below average in the week to 26 August 2009, which is close to the normal. However, market turned weak during afternoon tracking weakness in Chinese stocks. The BSE Sensex ended above 15,900 level and NSE Nifty closed above 4,700 mark after hitting a new 52-week high of 4,743.
Market belled the day on flat note and suddenly turned volatile in line with mixed Asian markets. However, US stocks markets ended with modest gains on Thursday backed by a late rally among bank stocks as well as higher oil prices. Meanwhile, US GDP reported decline of 1% in second quarter, which is better than expected. Additionally, consumer spending declined less than expected and jobless claims remained mixed when compared with expectations. Further, Indian stocks turned choppy and continued to move up and down. Going ahead, stocks slipped into red during afternoon trade as investor’s enthusiasm for risk diminished. However, market bounced back from lows during last trading hours to end in green in line with firm European stocks. From the sectoral front, Realty, Auto, Capital Goods, Bank, Oil & Gas and Metal stocks reported most of the gains. BSE Midcap and Smallcap stocks also reported upward movement. However, Capital Goods, FMCG and IT stocks remained out of favor during trading.
Among the Sensex pack 21 stocks ended in green territory and 9 in red territory. The market breadth indicating the overall health of the market remained positive as 1534 stocks closed in green while 1249 stocks closed in red and 72 stocks remained unchanged in BSE.
The BSE Sensex higher by 141.27 points or (0.90%) at 15,922.34 and NSE Nifty ended up by 44.15 points or (0.94%) at 4,732.35. BSE Mid Caps and Small Caps closed with gains of 41.20 and 54.70 points at 5,863.70 and 6,961.76 respectively. The BSE Sensex touched intraday high of 15,957.67 and intraday low of 15,663.35.
Gainers from the BSE Sensex pack are DLF Ltd (5.30%), JP Associates (5.18%), Bharti Airtel (4.39%), Hindalco (3.07%), Reliance Infra (2.51%), Herohonda Motors (2.25%), ICICI Bank (1.71%), HUL (1.60%), SBI (1.56%), Reliance (1.47%) and ACC Ltd (1.47%).
Losers from the BSE Sensex pack are Tata Power (1.36%), ITC Ltd (1.27%), Sun Pharma (0.96%), Wipro Ltd (0.77%), TCS Ltd (0.75%) and NTPC Ltd (0.71%).
On the global markets front, the Asian markets that opened before the Indian market, ended mixed. Nikkei 225, Singapore''s Straits Times Index, Seoul Composite closed and Taiwan Weighted closed higher by 60.17, 0.57, 8.61 and 119.11 points at 10,534.14, 2,642.80, 1,607.94 and 6,809.86 respectively. However, Shanghai Composite and Hang Seng lost 85.71 and 144.13 points at 2,860.69 and 20,098.62. Weakness in China''s stock markets continued to hurt sentiment on concerns that there could be large scale fund raising activity after Bank of China president Li Lihui said on Thursday that the bank may issue new shares to enhance its capital base.
European markets, which opened after the Indian market, are trading in green backed by positive earnings data and confidence in improving economic data. The UK GDP shrank by a smaller-than-expected. It has been revised up to a 0.7% decline in the second quarter, and a 5.6% year on year contraction, still the largest annual fall on record. In Frankfurt the DAX index is trading higher by 87.93 points at 5,558.26 and in London FTSE 100 is trading up by 55.75 points at 4,925.10.
The BSE Realty index closed higher by (3.79%) or 156.75 points at 4,288.94. Main gainers are Omaxe Ltd (9.25%), Unitech Ltd (5.71%), DLF Ltd (5.30%), Penland Ltd (4.60%) and Ackruti (3.%).
The BSE Auto index increased by (1.24%) or 71.48 points at 5,815.07. Gainers are Bajaj Auto (4.23%), Apollo Tyre (3.57%), Exide Industries (3.26%), Cummins Ind (2.96%) and Herohonda Motors (2.25%).
The BSE Capital Goods index ended up by (1.15%) or 151.47 points at 13,331.37 as Thermax Ltd (5.48%), Praj Industries (5.44%), Elecon Eng C (5.03%), Crompton Greaves (4.23%) and Jyoti Struct (3.36%) ended in green.
The BSE Bank index gained (1.12%) or 93.09 points at 8,403.71. Gainers are Oriental Bank (4.17%), IDBI Bank (2.92%), Punjab National Bank (2.53%), Bank of India (2.20%) and ICICI Bank (1.71%).
The BSE Oil & Gas index advanced by (1.09%) or 107.23 points at 9,944.84. Gainers are Cairn Ind (2.83%), Reliance Pet (1.59%), Reliance (1.47%) and IOC Ltd (0.76%).
The BSE Consumer Durable index dropped by (1.04%) or 34.62 points at 3,299.01. Lossers are Gitanjali GE (2.96%), Rajesh Export (2.70%), Videocon Ind (1.30%) and Titan Ind (1.15%).
J.B. Chemicals & Pharmaceuticals Ltd. gained 2.52% the company announced the receipt of US FDA Approval to its Abbreviated New Drug Application (ANDA) for Cotirizine HydrochJoride (anti-allergic) 5 rng and "10 mg. Tablets.
Reliance Communications went up by 0.76%. S Tel and the company’s subsidiary, Reliance Infratel have signed an end-to-end telecom infrastructure agreement for telecom towers, transmission for BTS sites and fibre backbone for intercity connectivity. Reliance Communications will execute this agreement through its tower subsidiary Reliance Infratel.
KEC International advanced by 9.26%. The company has won orders in the domestic and international space to the tune of Rs. 780 crores.
Valecha Engineering closed higher by 9.98%. The company has recently bagged new projects worth Rs 1.72 billion approximately which includes two road projects at Arunachal Pradesh worth Rs 790 million, construction of waste tank farm from Bhabha Atomic Research Centre, Trombay, Mumbai worth Rs 150 million, bridge work at Thane Mumbai worth Rs 460 million and bridge work at Indore worth Rs 320 million.
McNally Bharat Engineering Company Ltd is ended down by 4.81%. The company has received an order for Supply and Installation of Water Pre-Treatment Plant Package for Rihand Super Thermal Power Project, Stage II (2X 660MW) for NTPC Ltd for a value of Rs. 24.69 crores. The contractual period of completion is 28 months.
Wipro Ltd decreased by 0.77%. The company and Lavasa Corporation Ltd. announced their partnership for planning, implementing and managing Information & Communication Technology (ICT) services across Lavasa city. Lavasa is free India''s first and largest Hill City being developed by Lavasa Corporation Ltd, a part of HCC Group.
NHPC to list on 1 September 2009
Company had raised Rs 6,048 crore through the recently concluded IPO
Shares of state-run hydropower generator NHPC will debut on the bourses on 1 September 2009.
NHPC had raised Rs 6,048 crore through the recently concluded public issue, which were priced at the top end of the Rs 30- 36 band by the Indian government. The IPO, biggest since the Reliance Power issue in January 2007, was subscribed 23.5 times, receiving bids for 3981.26 crore shares as against 168 crore shares offered by the company.
The qualified institutional buyers (QIBs) category was subscribed 29.16 times. Investors in this category put in bids for 2861.44 crore shares as against 98.12 crore shares reserved for this category.
The non institutional investor category, made up of high net worth individuals and corporate investors, was subscribed 56.70 times. The category mopped up bids for 927.41 crore shares as against 16.35 crore shares set aside by the company.
The retail investor category was subscribed 3.87 times. Total bids in this category were for 190.01 crore shares as against 49.06 crore shares assigned by the company.
The NHPC IPO, in which investors were asked to bid for shares in the price range of Rs 30-36 a share, opened on 7 August 2009 and closed on 12 August 2009.
The shares on sale during the offer included the government's 5% equity and 10% of fresh equity issued by the PSU.
The government would get Rs 2,016 crore while NHPC would retain the remaining Rs 4,032 crore. Post IPO, the government's stake would come down to little over 86% in the power PSU.
NHPC is the largest hydroelectric power generating company in the country. With an installed capacity of 4,815 megawatt (MW), NHPC has 11 projects under construction aggregating to a total capacity of 4,622 MW. The new projects are likely to be commissioned by 2012.
NHPC would use the IPO proceeds to part fund its ongoing investments in 11 projects. It also has plans to add 14,000 MW of power by 2020 for which it has either completed survey of projects or was in the process of surveying several others.
NHPC's consolidated net profit rose 3% to Rs 1244.15 crore on 19.2% growth in sales to Rs 3493.71 crore in the year ended March 2009 (FY 2009) over the year ended March 2008.
On post-IPO equity of Rs 12300.74 crore, the EPS for FY 2009 works out to Rs 1 and the PE is 36 times at the offer price band of Rs 36 per share.
BSE Bulk Deals to Watch - Aug 28 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
28/8/2009 523694 APCOTEX IND PAYASH SECURITIES PVT.LTD. B 138988 64.95
28/8/2009 523694 APCOTEX IND LANDMARK CAPITAL MARKET .LTD. B 139666 65.00
28/8/2009 523694 APCOTEX IND GEETANJALI TRADING & INVESTMENTS LTD. S 69986 65.00
28/8/2009 523694 APCOTEX IND INA ASHWIN DANI S 42371 65.01
28/8/2009 523694 APCOTEX IND ASHWIN SURYAKANT DANI S 111937 65.00
28/8/2009 505506 AXON INFOTEC TIRATH PRADYUMAN PARIKH B 20144 19.17
28/8/2009 505506 AXON INFOTEC RAJINDAR KAUR B 5000 19.17
28/8/2009 505506 AXON INFOTEC SAI KANAKAMAHALAKSHMI FINANCE PVT LTD B 10000 19.17
28/8/2009 505506 AXON INFOTEC SWAPAN MUKHERJEE B 5000 19.17
28/8/2009 505506 AXON INFOTEC URMILA DOSHI B 3305 19.16
28/8/2009 505506 AXON INFOTEC KALPANA MADHANI SECURITIES PVT. LTD. B 5000 19.17
28/8/2009 505506 AXON INFOTEC TIRATH PRADYUMAN PARIKH S 3744 19.17
28/8/2009 505506 AXON INFOTEC VRP FINANCIAL SERVICES PVT LTD. S 74000 19.17
28/8/2009 505506 AXON INFOTEC KALPANA MADHANI SECURITIES PVT. LTD. S 5000 19.17
28/8/2009 505506 AXON INFOTEC VIDHATA PVT LTD. S 11062 19.05
28/8/2009 511664 BGIL FL TEC RAKESH BHATIA S 110000 20.60
28/8/2009 500051 BHAGWAT GASE SAINATH HERBAL CARE MARKETING P.LTD B 99990 10.05
28/8/2009 500051 BHAGWAT GASE SHEETAL RAJESH JAIN S 91988 10.11
28/8/2009 512253 BIO GREEN I RAMESH VIRAJ SHAH B 46827 12.88
28/8/2009 531932 C G IMPEX AMIT OMPRAKASH BAGADIA S 50000 8.51
28/8/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD B 190695 8.38
28/8/2009 531158 CAT VISION P MACKERTICH CONSULTANCY SERVICES PVT. LTD. S 50560 18.50
28/8/2009 531337 CHAN GUIDE I PARVEEN AGGARWAL B 50000 64.04
28/8/2009 531337 CHAN GUIDE I B H LAKHANI S 30625 65.52
28/8/2009 531337 CHAN GUIDE I VIJAY ASHANAND THAKKAR S 39000 63.96
28/8/2009 511672 CLARUS KRISHNA PRASADA SR S 32700 6.21
28/8/2009 526285 DIVYAJYO IND ANIRUD HANYATI B 52300 8.85
28/8/2009 526285 DIVYAJYO IND RANI SODHANI S 52300 8.85
28/8/2009 517973 DMC INTER ABHINAY KAPOOR B 100000 8.00
28/8/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 40192 8.38
28/8/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD B 20075 8.33
28/8/2009 517973 DMC INTER SHIVCHARAN DASSMITTAL B 27000 7.87
28/8/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD S 67350 7.99
28/8/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD S 24400 8.17
28/8/2009 517973 DMC INTER SHIVCHARAN DASSMITTAL S 27000 8.40
28/8/2009 517973 DMC INTER KAPIL GUPTA S 25000 8.12
28/8/2009 533055 EDSERV SOFT BP FINTRADE PRIVATE LIMITED S 101561 88.04
28/8/2009 531486 FILMCIT MEDI AMRUT SECURITIES LTD. B 1819205 1.21
28/8/2009 531486 FILMCIT MEDI WELLNESS COMMUNICATION (P) LTD S 2600000 1.21
28/8/2009 507488 G M BREWERIE HITESH SHASHIKANT JHAVERI B 85758 101.90
28/8/2009 507488 G M BREWERIE HITESH SHASHIKANT JHAVERI S 85759 101.84
28/8/2009 530945 GANGOTRI I&S RAJA MOHAMAD BIN MAIDEN B 50000 25.40
28/8/2009 530945 GANGOTRI I&S GBK RESOURCES PVT LTD S 85000 25.42
28/8/2009 517370 INCAP LIMITE PAMULAPATI HIMABINDU B 126500 13.35
28/8/2009 517370 INCAP LIMITE KOTESWARRAO KOMALAPATIRAMA S 86500 13.35
28/8/2009 517370 INCAP LIMITE ASHA PRIYA MANDAVA S 40000 13.35
28/8/2009 523467 JAI MATA GLA J V STOCK BROKING PRIVATE LIMITED B 20000 13.22
28/8/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 19000 13.22
28/8/2009 523467 JAI MATA GLA ARYA INVESTMENTS S 14700 13.22
28/8/2009 505840 JAIPAN INDUS GLOBAL FILM & BORD CASTING LTD S 38110 46.75
28/8/2009 522101 KILBURN ENGG* BNK SECURITIES PVT.LTD. S 150000 34.19
28/8/2009 531413 KIRAN PRIN P SAPATRISHI PROPERTIES PVT LTD S 26000 6.75
28/8/2009 500256 LOK HOUSI CO JMP SECURITIES PVT LTD B 289205 36.56
28/8/2009 590011 MOVING PICTU-PMS BHARATH KUMAR BANAVARA ESWARAIAH B 56978 5.02
28/8/2009 532045 NEXXOFT INFO PARSVANATH FINCON PRIVATE LIMITED B 31000 17.67
28/8/2009 532045 NEXXOFT INFO ATULBHAI GORDHANBHAI VAJA S 30126 17.67
28/8/2009 531272 NIKKI GLOB F SURENDRA KUMAR GUPTA S 18400 21.34
28/8/2009 513228 PENNAR IND L DKG SECURITIES PVT. LTD. S 657078 27.16
28/8/2009 526801 PSL LIMITED CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED B 420000 157.70
28/8/2009 526801 PSL LIMITED CLSA (MAURITIUS) LIMITED S 420000 157.70
28/8/2009 532524 PTC INDIA T ROWE PRICE NEW ASIA FUND S 2698500 96.78
28/8/2009 517447 R S SOFTW I BABULAL V SHAH B 47175 54.62
28/8/2009 511652 RAM KAASHYAP SUBHKARAN TILOKCHAND AGARWAL B 152900 16.63
28/8/2009 511652 RAM KAASHYAP TRIPLE ENCLAVE INFRA DEVELOPER S 200000 16.63
28/8/2009 532690 RAMSARUP IND NOVEL APARTMENTS PVT LTD B 110000 71.17
28/8/2009 532690 RAMSARUP IND ARENA TEXTILES AND PVT LTD S 100000 71.00
28/8/2009 532687 REPRO INDIA RAJESH A BHUVA(HUF) B 67149 105.27
28/8/2009 532687 REPRO INDIA RAJESH A BHUVA(HUF) S 67149 100.67
28/8/2009 531952 RIBA TEXTILE SB LIQUOR DISTRIBUTORS PRIVAT B 65000 41.13
28/8/2009 531952 RIBA TEXTILE REHWA CORPORATION LIMITED S 73000 41.08
28/8/2009 531312 SANRAA JMP SECURITIES PVT LTD B 3000000 0.81
28/8/2009 526365 SHYAM STAR PRABHU BHAI DOBARIA S 50000 21.43
28/8/2009 532419 SMARTLINK NITIN ANANT KUNKOLIENKER B 956853 41.15
28/8/2009 532419 SMARTLINK PLATINUM ASSET MANAGEMENT LIMITED A/C PLATINUM UNHEDGED FUND S 1000000 41.16
28/8/2009 512413 SPECTACLE HEMANT MADHUSUDAN SHETH S 550000 42.61
28/8/2009 530611 STURDY INDS S K INVESTMENTS B 49230 22.53
28/8/2009 570001 TATAMOTORS-DVR-A-ORDY SUNDARAM BNP PARIBAS B 499500 352.00
28/8/2009 570001 TATAMOTORS-DVR-A-ORDY IFCI LTD. S 907040 352.00
28/8/2009 519228 TEMPT.FOODS MERRILL LYNCH CAPITAL MARKET ESPANA SA SVB S 143532 37.50
28/8/2009 590005 TIDEWATERDM-PMS HITESH SHASHIKANT JHAVERI B 4578 5238.27
28/8/2009 524264 UNIMER INDIA YASH MANAGEMENT AND SATELITE LTD B 499000 9.05
28/8/2009 524264 UNIMER INDIA PREMLATA JAGDISHCHANDER BANSAL S 500000 9.05
28/8/2009 511431 VAKRAN SOFTW BP FINTRADE PRIVATE LIMITED B 126359 76.11
28/8/2009 511431 VAKRAN SOFTW BP FINTRADE PRIVATE LIMITED S 168213 76.52
28/8/2009 532917 VARUN INDS JMP SECURITIES PVT LTD B 181323 170.44
28/8/2009 532917 VARUN INDS JMP SECURITIES PVT LTD S 178323 170.71
28/8/2009 531874 VENUS VENT VIPUL HIRALAL SHAH B 40785 45.43
28/8/2009 531874 VENUS VENT KAUSHIK RAJNIKANT MEHTA S 30350 45.68
28/8/2009 531249 WELL PACK PA PANDYA HARDIK M B 34360 182.25
28/8/2009 531249 WELL PACK PA PANDYA HARDIK M S 34258 183.47
28/8/2009 522209 YOGI SUNGWON JYOTHIRMAI SANNATHI B 40000 9.99
28/8/2009 522108 YUKEN INDIA HEMANT S SHETH B 19296 88.86
28/8/2009 530091 ZYDEN GENTEC JMP SECURITIES PVT LTD S 290000 3.60
NSE Bulk Deals to Watch - Aug 28 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
28-AUG-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,412767,1553.40,-
28-AUG-2009,ALPHAGEO,Alphageo (India) Limited,MANSUKH SECURITIES & FINANCE LIMITED,BUY,27632,252.70,-
28-AUG-2009,AXIS-IT&T,Axis-IT&T Limited,CHAMUNDA FINSTOCK PVT LTD,BUY,100895,38.49,-
28-AUG-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,2304020,4.19,-
28-AUG-2009,EDSERV,Edserv Softsystems Limite,BHAVIN Y MEHTA,BUY,68156,87.81,-
28-AUG-2009,GRABALALK,Grabal Alok Impex Limited,PINKY EXHIBITORS PRIVATE LIMITED ,BUY,110000,60.00,-
28-AUG-2009,ICSA,ICSA (India) Limited,INDEA CAPITAL PTE LTD A/C INDEA LONG TERM OPPORTUNITIES MAST,BUY,400000,194.70,-
28-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,6859104,22.10,-
28-AUG-2009,RAMSARUP,Ramsarup Industries Limit,NOVEL APARTMENTS PVT LTD,BUY,111226,71.52,-
28-AUG-2009,RSSOFTWARE,R. S. Software (I) Ltd.,SHAH SARYUBEN BABULAL,BUY,50000,57.59,-
28-AUG-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,412767,1554.18,-
28-AUG-2009,ALPHAGEO,Alphageo (India) Limited,MANSUKH SECURITIES & FINANCE LIMITED,SELL,27632,252.89,-
28-AUG-2009,AXIS-IT&T,Axis-IT&T Limited,CHAMUNDA FINSTOCK PVT LTD,SELL,30055,39.55,-
28-AUG-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,2185902,4.18,-
28-AUG-2009,EDSERV,Edserv Softsystems Limite,BHAVIN Y MEHTA,SELL,100004,88.05,-
28-AUG-2009,GRABALALK,Grabal Alok Impex Limited,HSBC BANK (MAURITIUS) LIMITED,SELL,110000,60.00,-
28-AUG-2009,ICSA,ICSA (India) Limited,INDEA CAPITAL PTE LTD A/C INDEA LONG TERM OPPORTUNITIES MAST,SELL,199049,194.70,-
28-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,7194616,22.11,-
28-AUG-2009,PTC,PTC India Limited,T ROWE PRICE INTERNATIONAL INC. A/C T ROWE PRICE NEW ASIA F,SELL,2226687,96.83,-
28-AUG-2009,RAMSARUP,Ramsarup Industries Limit,ARENA TEXTILES & INDUSTRIES LIMITED,SELL,100000,71.00,-
28-AUG-2009,RAMSARUP,Ramsarup Industries Limit,NOVEL APARTMENTS PVT LTD,SELL,5000,71.50,-
Nifty surges to 15-month high
Key benchmark indices surged on the back of revival in monsoon and firm global stocks. The S&P CNX Nifty scales its highest level in nearly 15 months. The market rose in all the five trading sessions in the week ended Friday, 28 August 2009. Global markets rallied to 10-month highs buoyed by renewed hopes that the global economic recovery is gathering pace.
The BSE Sensex jumped 681.51 points or 4.47% to 15,922.34 in the week ended 28 August 2009. The S&P CNX Nifty gained 203.55 points or 4.49% to 4732.35, its highest closing since 2 June 2008.
The BSE Mid-Cap index jumped 304.38 points or 5.48% to 5,863.70 and the BSE Small-Cap index rose 498.78 points or 7.72% to 6,961.76 in the week.
World stocks rose after Federal Reserve Chairman Ben S. Bernanke and European Central Bank President Jean-Claude Trichet said in an annual meeting of policy makers on 21 August 2009, the world economy is pulling out of its deepest recession since the 1930s.
The US economy shrank at an annual pace of 1% between April and June 2009, unchanged from an initial estimate released last month, according to the latest data. Analysts had been expecting a downward revision, with some forecasting a contraction of 1.5%. Consumer spending contracted by at a lower-than-expected 1% in the second quarter. Consumer spending accounts for about 70% of US economic activity.
The UK economy contracted 0.7% the second quarter as the recession prompted companies to cut investment and inventories while consumers scaled back spending. The fall in gross domestic product was less than the 0.8% calculated last month, the Office for National Statistics said on 28 August 2009 in London.
Investor optimism about the global economy soared to its highest level in nearly six years, with portfolio managers putting their cash back into equity markets, a global fund manager survey for August 2009 by a foreign brokerage house showed.
A net 75% of survey respondents believe the world economy will strengthen in the coming 12 months, the highest reading since November 2003 and up from 63% in July 2009. Confidence about corporate health is at its highest since January 2004. A net 70% of the panel respondents expect global corporate profits to rise in the coming year, up from 51% last month.
Closer home, revival of monsoon rains boosted sentiment. India's monsoon rains were 5% below average in the week to 26 August 2009, coming in close to normal for the second successive week after a prolonged dry spell, the Meteorological Department said on 27 August 2009. Rainfall since 1 June to 26 August was 25% below normal, improving slightly from a deficit of 26% a week earlier. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
The government expects GDP growth to accelerate to over 8% in 2010-11, with the economy showing signs of recovery, Finance Minister Pranab Mukherjee said on 27 August 2009. In the current fiscal, finance minister Pranab Mukherjee said the economy would expand more than 6%, despite scanty monsoon.
Growth had dipped to 6.7% in 2008-09 after over 9% growth in the previous three years as the global economic meltdown cast its shadow on the economy.
The government's immediate objective is to reverse declining exports and the trade policy will give thrust to employment oriented sectors, Commerce Minister Anand Sharma said on 27 August 2009 while unveiling a trade policy for the five years ending March 2014. The minister said he expects exports to grow 15% in fiscal year ending March 2011. The government will continue a tax refund scheme for exporters until December 2010 while a duty-free export promotion scheme will be valid until March 2011, Sharma said
Finance Minister Mukherjee on 26 August 2009 said reforms would continue in right earnest to get the economy back to 9% growth. At an event on evening 25 August 2009 on 'Mission 2010: The Reform Road Map', the finance minister said that the green shoots were visible in industry with basic goods, intermediates and consumer durables doing better in the first quarter.
Mukherjee made it clear that public spending won't push interest rates higher. Nor would the government's huge debt appetite leave private industry high and dry.
Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 6275.03 points or 65.04% in calendar year 2009 as on 28 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7761.94 points or 95.11% as on 28 August 2009. FII inflow in calendar year 2009 totaled Rs 39,192 crore (till 27 August 2009).
Trading for the week began on an upbeat not with market advancing on Monday, 24 August 2009 on the back of firm global stocks. The BSE 30-share Sensex gained 387.92 points or 2.55% to 15,628.75 and the S&P CNX Nifty rose 114 points or 2.52% to 4,642.80
Sustained buying in index pivotals helped key benchmark indices log small gains in what was a highly choppy trading session on Tuesday, 25 August 2009. Software stocks and index heavyweight Reliance Industries (RIL) led an intraday rebound. The BSE 30-share Sensex was up 59.72 points or 0.38% to 15,688.47 and the S&P CNX Nifty was up 16.55 points or 0.36% to 4,659.35.
Key benchmark indices extended gains for the fifth day in a row on Wednesday, 26 August 2009, after the Finance Minister said economic reforms would boost growth. Shares from the IT pack led the rally on the bourses. The BSE 30-share Sensex rose 81.38 points or 0.52% to 15,769.85 and the S&P CNX Nifty rose 21.50 points or 0.46% to 4,680.85.
Volatility ruled the roost on Thursday, 26 August 2009 as the key benchmark indices notched up marginal gains. High volatility was due to expiry of August 2009 derivative contracts. The BSE 30-share Sensex was up 11.22 points or 0.07% to 15,781.07 and the S&P CNX Nifty was up 7.35 points or 0.16% to 4,688.20.
Key benchmark indices extended gains for the seventh straight session on Friday, 28 August 2009 on revival of monsoon rains. The BSE 30-share Sensex rose 141.27 points or 0.9% to 15922.34, its highest closing since 3 August 2009. The S&P CNX Nifty gained 44.15 points or 0.94% to 4,732.35 its highest closing since 2 June 2008.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 7.34% to Rs 2070.30 in the week. As per reports, a hearing on the gas dispute between RIL and Reliance Natural Resources (RNRL) will take place in the Supreme Court (SC) on 20 October 2009. Earlier, the SC had announced 1 September 2009 as the date of hearing of the case. The dispute 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.
In June, the Bombay High Court had ruled that Reliance Industries should supply gas to Reliance Natural at $2.34 per million metric British thermal unit, nearly half the $4.20 price in an interim court order in January 2009.
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.
Aban Offshore galloped 33.77% after the company said it expects revenue of $695 million from two contracts it signed for deploying four rigs. The company announced the new order win after market hours on 25 August 2009.
Realty stocks rose on reports demand for residential projects in major cities is picking up on lower home loan rates, property price cuts by developers and a recovery in the job market. Parsvnath Developers (up 8.93%), HDIL (up 13.33%), Indiabulls Real Estate (up 6.08%), Unitech (up 15.57%), advanced.
India's largest realty firm by market capitalisation DLF gained 8.10% on recent reports the company had bagged a 350-acre plot for Rs 1,750 crore in Haryana, New Delhi, for developing a recreation and leisure project, making it one of the costliest land deals in recent times.
Metal shares gained on firm prices on the London Metal Exchange. Hindalco Industries (up 5%), Sterlite Industries (up 10.71%), Hindustan Zinc (up 1.03%), and JSW Steel (up 1.07%), rose.
India's largest steel maker by sales Tata Steel fell 1.42% after the company reported a net loss of Rs 2208.68 crore in Q1 June 2009 on a consolidated basis compared with a net profit of Rs 3900.90 crore in Q1 June 2008. The company's total income fell 46% to Rs 23496.21 crore in Q1 June 2009 over Q1 June 2008. The results were announced during market hours on 27 August 2009.
Telecom stocks rose after the government on 27 August 2009 fixed Rs 3500 crore as a base price for all-India third-generation spectrum. India's largest mobile phone company by sales Bharti Airtel rose 5.66% on reports the company and MTN Group may agree on a merger deal by mid-September. However, South Africa's MTN said no decision or agreement to acquire any shares, GDRs, implement transaction with Bharti Airtel has yet been made by the boards of either MTN or Bharti.
Bharti and Johannesburg-based MTN, Africa's largest wireless carrier, on 20 August 2009 extended talks for a second time over a potential $23 billion merger that would challenge Vodafone Group Plc's push into India and Africa. The new deadline is 30 September 2009.
India's second largest mobile telecom player by sales Reliance Communications rose 6.82% after the company signed a deal with S Tel to share telecom infrastructure.
The government has also decided to fix Rs 1750 crore as the base price for auctioning for WiMAX spectrum for wireless broadband services. Telecom Minister A Raja said the government will get at least Rs 25000 crore ($5.1 billion) from the sale of these auctions which will be held within 90 days.
Bank stocks were mixed. India's biggest commercial bank in terms of branch network State Bank of India (SBI) rose 0.27%.
India's largest private sector bank by net profit ICICI Bank rose 2.41%. The bank has launched a special offer for new home loan borrowers effective from 20 August 2009. Under this, interest rates for home loans upto Rs 20-lakh will now be at 8.75%. For loans between Rs 20-Rs 50 lakh, the new rates will be 9.25% while those above Rs 50-lakh, the rate has been fixed at 9.75%.
India's second largest private sector bank by net profit HDFC Bank fell 0.49% on profit booking.
India's largest engineering & construction company by sales Larsen & Toubro advanced 8.86% after it won four orders for electrical projects totaling Rs 1044 crore from Qatar, United Arab Emirates and Oman. The contracts are to build electrical sub-stations. The announcement was made on 24 August 2009.
Auto stocks rose after a recent survey showed that recruitment in auto and ancillary units were up 11% in July 2009, compared with June 2009, raising optimism that the sector is once again poised for a high growth after the global economic slowdown had hit it hard last year.
India's largest small car maker by sales Maruti Suzuki India was up 2.61%. The company on 26 August 2009 launched a new version of its small car Estilo with a fuel efficient engine at an introductory price between Rs 3.12 lakh and Rs 3.95 lakh (ex-showroom, Delhi).
India's largest tractor marker by sales Mahindra & Mahindra rose 3%. India's largest bike marker by sales Hero Honda Motors gained 1.58%.
India's largest truck marker by sales Tata Motors surged 13.20% to Rs 489.45 after striking a 52-week high of Rs 505 on 26 August 2009. At its annual general meeting in Mumbai on 25 August 2009, Ratan Tata, Chairman of Tata Motors, said that Tata Motors and Jaguar Land Rover will come through this tough period as leaner and more cost-efficient companies.
IT stocks rose after the top three IT firms won a large outsourcing deal from British Petroluem. India's third largest software services exporter Wipro rose 10.19%. India's second largest software services exporter Infosys Technologies rose 7.85%. India's largest software services exporter TCS gained 6.25%.
In one of the largest deals, the top-three Indian vendors Infosys, TCS and Wipro along with IBM Corp bagged a slice of the $1.5 billion five year information technology (IT) outsourcing contract from British Petroleum Pcl (BP), one of the world's largest integrated oil and gas companies. The companies announced the BP deal after trading hours on 26 August 2009
HCL Technologies surged 9.40% after the company's net profit rose 26.45% to Rs 192.94 crore on 9% rise in total income to Rs 1191.71 crore in Q4 June 2009 over Q3 March 2009. The company announced its result before market hours on 25 August 2009.
Market may consolidate after recent run up; Q1 GDP data eyed
The market may consolidate after a 4.47% rise in the week ended Friday, 28 August 2009. The Central Statistical Organisation's data on India's gross domestic production due on Monday, 31 August 2009 will be the key event to watch out for in the forthcoming week. Besides movements in global markets, foreign funds activity and progress of India's monsoon may continue to influence sentiment on the domestic bourses.
Meanwhile the debut of state-run hydropower firm NHPC would be closely watched as it would set the tone for other companies looking to mop funds through the primary market.
The economy is forecast to have expanded further in the first quarter ended in June 2009, buoyed by services sector output and improving industrial activity. The economy expanded 5.8% in the January-March 2009 quarter.
Meanwhile, the revival in monsoon has lifted sentiment. India's monsoon rains were 5% below average in the week to 26 August 2009, coming in close to normal for the second successive week after a prolonged dry spell, the Meteorological Department said on 27 August 2009. Rainfall since 1 June to 26 August was 25% below normal, improving slightly from a deficit of 26% a week earlier. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual monsoon rains running between June to September.
In mid-August 2009, India Meteorological Department said that the country's monsoon rain will be 87% of the 50-year average, compared with 93% forecast in June.
India's deficient monsoons may affect the inflation outlook more than growth prospects, the Reserve Bank of India (RBI) said on 28 August 2009 adding that prolonged expansionary fiscal and monetary policies threatened to push up prices and eventually crimp growth. In its quarterly review of the monetary policy in late July 2009, RBI said it expects inflation to scale up to around 5% by March 2010.
Meanwhile, state-run Oil India (OIL) is hitting primary market to raise funds. The government has fixed a price band of Rs 950-1,050 per share for the initial public offering (IPO) of Oil India that remains open between 7 and 11 September 2009. OIL will raise up to Rs 4,982 crore at the top end of the price band.
OIL is the second state-run firm to hit the primary market this year after strong investor response to the recently concluded NHPC public offer.
Shares of state-run hydropower generator NHPC will debut on the bourses on 1 September 2009. NHPC had raised Rs 6,048 crore through the recently concluded public issue, which were priced at the top end of the Rs 30- 36 band by the Indian government. The IPO, biggest since the Reliance Power issue in January 2007, was subscribed 23.5 times.
Among the other companies looking to tap the primary market in the coming months include Coal India, Pipavav Shipyard, Indiabulls Power, Cox and Kings, Usher Eco Power, MCX, Globus Spirits, Godrej Properties, ARSS Infrastructure Projects, Pride Hotels, Bharat Sanchar Nigam (BSNL), United Bank, Great Eastern Energy, JSW Energy, Euro Multivision, and Radiant Info Systems.
Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 6275.03 points or 65.04% in calendar year 2009 as on 28 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7761.94 points or 95.11% as on 28 August 2009.
Foreign funds have been the key drivers of the recent rally. Their inflow in August 2009 totaled Rs 2467.20 crore (till 26 August 2009). FII inflow in calendar year 2009 totaled Rs 37836.80 crore.
Markets across the globe have been on an upward journey on the back of improved economic data. The UK economy contracted 0.7% the second quarter as the recession prompted companies to cut investment and inventories while consumers scaled back spending. The fall in gross domestic product was less than the 0.8% calculated last month, the Office for National Statistics said on 28 August 2009 in London.
The US economy shrank at an annual pace of 1% between April and June 2009, unchanged from an initial estimate released last month, data on 27 August 2009 showed. Analysts had been expecting a downward revision, with some forecasting a contraction of 1.5%. Consumer spending contracted by at a lower-than-expected 1% in the second quarter. Consumer spending accounts for about 70% of US economic activity.
Sensex jumps 7.5% in seven days as world stocks rally
The key benchmark indices gained for the straight seventh day but volatility was high. The BSE 30-share Sensex rose 141.27 points or 0.9%, off close to 35 points from the day's high and up close to 260 points from the day's low. The 50-unit S&P CNX Nifty today, 28 August 2009, hit its highest closing level in nearly 15 months. Revival of monsoon rains, higher European stocks and gains in US index futures boosted the domestic bourses. Index heavyweight Reliance Industries rose. Metal, banking and realty stocks edged higher.
The market was volatile. The market edged higher in early trade on revival of monsoon rains. The market regained strength after slipping in the red for a brief period in mid-morning trade. The market once again slipped into the red in early afternoon trade before regaining positive zone. The market weakened in afternoon trade even as European stocks edged higher in early trade. In a complete reversal of the trend, the market bounced back in mid-afternoon trade. The market pared gains after hitting fresh intraday high in late trade.
Revival of monsoon rains boosted sentiment. India's monsoon rains were 5% below average in the week to 26 August 2009, coming in close to normal for the second successive week after a prolonged dry spell, the Meteorological Department said on Thursday, 27 August 2009. Rainfall since 1 June to 26 August was 25% below normal, improving slightly from a deficit of 26% a week earlier. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
Water level in the main reservoirs was at 42% of the capacity as on 27 August 2009, lower than last year's 63% and below the 10-year average of 57%.
India's deficient monsoons may affect the inflation outlook more than growth prospects, the Reserve Bank said on Thursday, adding that prolonged expansionary fiscal and monetary policies threatened to push up prices and eventually crimp growth.
European shares rose on Friday after two days of losses, led higher by commodity and banking stocks. The key benchmark indices in France, Germany and UK were up by between 0.98% to 1.36%.
The UK economy contracted 0.7% the second quarter as the recession prompted companies to cut investment and inventories while consumers scaled back spending. The fall in gross domestic product was less than the 0.8% calculated last month, the Office for National Statistics said today in London.
Chinese stocks fell on concern government measures to curb lending and production in industries including steel and cement will slow economic growth. The Shanghai Composite index was down 2.91%. Hong Kong's Hang Seng was down 0.71%.
But, other Asian stocks were in green. Key benchmark indices in Taiwan Singapore and South Korea were up 0.02% to 1.78%. Japan's Nikkei rose 0.57% even as Japan's unemployment rate rose to a record 5.7% in July 2009 and deflation worsened, dealing a blow to Prime Minister Taro Aso on the eve of an election that polls indicate his ruling Liberal Democratic Party will lose.
Trading in US index futures indicated Dow could rise 34 points at the opening bell today, 28 August 2009.
US markets closed with modest gains on Thursday, 27 August 2009 helped by a late rally in bank stocks as well as higher oil prices. The Dow rose 37.11 points, or 0.4%, to close at 9,580.63. The S&P 500 index rose 2.86 points, or 0.3%, to 1,030.98, while the Nasdaq Composite Index rose 3.30 points, or 0.2%, to 2,027.73.
The US economy shrank at an annual pace of 1% between April and June 2009, unchanged from an initial estimate released last month, according to the latest data. Analysts had been expecting a downward revision, with some forecasting a contraction of 1.5%. Consumer spending contracted by at a lower-than-expected 1% in the second quarter. Consumer spending accounts for about 70% of US economic activity.
Initial jobless claims came in at 570,000, which is down 10,000 from the previous week and essentially in-line with expectations. Meanwhile, continuing claims came in at 6.13 million, below expectations and down more than 100,000 from the previous week.
The BSE 30-share Sensex rose 141.27 points or 0.9% to 15922.34, its highest closing since 3 August 2009. The Sensex rose 176.60 points at the day's high of 15957.67 in late trade. The Sensex fell 117.72 points at the day's low of 15,663.35 in afternoon trade.
The S&P CNX Nifty gained 44.15 points or 0.94% to 4,732.35 its highest closing since 2 June 2008. Nifty September 2009 futures were at 4731 at a discount of 1.35 points as compared to the spot closing of 4732.35. Turnover in NSE's futures & options (F&O) segment was Rs 60,109.07 crore, sharply lower than Rs 91,809.58 crore on Thursday, 27 August 2009.
BSE clocked a turnover of Rs 6510 crore, lower than Rs 6581.02 crore on Thursday, 27 August 2009.
The market has surged in the past seven days supported by positive global cues. The BSE Sensex has risen 1112.70 points or 7.51% in seven trading sessions to settle at 15,922.34 on Friday, 28 August 2009 from 14,809.64 on 19 August 2009.
Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 6275.03 points or 65.04% in calendar year 2009 as on 28 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7761.94 points or 95.11% as on 28 August 2009. FII inflow in calendar year 2009 totaled Rs 39,192 crore (till 27 August 2009).
Coming back to today's trade, the BSE Mid-Cap index rose 0.71% and the BSE Small-Cap index rose 0.79%. Both the indices, however, underperformed the Sensex.
The BSE Realty index (up 3.79%), the BSE Auto index (up 1.24%), the BSE Capital Goods index (up 1.15%), the BSE Bankex (up 1.12%), the BSE Oil & Gas index (up 1.09%), outperformed the Sensex.
The BSE Consumer Durables index (down 1.04%), the BSE FMCG index (down 0.42%), the BSE IT index (down 0.4%), the BSE Healthcare index (down 0.19%), the BSE Power index (up 0.54%), the BSE PSU index (up 0.55%), the BSE Teck index (up 0.65%), the BSE Metal index (up 0.74%), underperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1528 shares advanced as compared with 1240 that declined. A total of 70 shares remained unchanged. However, the breadth weakened from a strong breadth earlier in the day.
Among the 30-member Sensex pack, 21 rose while rest fell.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 1.471% to Rs 2070.30. As per reports, a hearing on the gas dispute between RIL and Reliance Natural Resources (RNRL) will take place in the Supreme Court (SC) on 20 October 2009. Earlier, the SC had announced 1 September 2009 as the date of hearing of the case. The dispute 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.
In June, the Bombay High Court had ruled that Reliance Industries should supply gas to Reliance Natural Resources at $2.34 per million metric British thermal unit, nearly half the $4.20 price in an interim court order in January 2009.
Cairn India rose 2.83% as crude oil rose. Cairn India will start pumping crude on Saturday 29 August 2009 from its Rajasthan block.
Crude oil rose for a second day in New York and pared its weekly loss after the dollar weakened, spurring demand for commodities as a hedge against inflation. Crude oil for October delivery climbed as much as 54 cents, or 0.7%, to $73.03 a barrel on Friday, 28 August 2009, extending Thursday's rally. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms
Tata Power Company fell 1.36% even as consolidated net profit rose 160.47% to Rs 572.65 crore on 15.71% rise in total income to Rs 4781.89 crore in Q1 june 2009 over Q1 June 2008. The results were announced in late trade today.
India's largest power generation firm by sale NTPC fell 0.71%. Sidhartha Pradhan, joint secretary of the department of disinvestment, today said the government plans to file the draft prospectus for a follow-on offer by state-run utility NTPC by December 2009. The government may also file initial papers for new issues by three or four other state-run companies by December 2009, he added.
Bank stocks rose on bargain hunting. India's largest private sector bank by net profit ICICI Bank rose 1.71%. The bank has launched a special offer for new home loan borrowers effective from 20 August 2009. Under this, interest rates for home loans upto Rs 20-lakh will now be at 8.75%. For loans between Rs 20-Rs 50 lakh, the new rates will be 9.25% while those above Rs 50-lakh, the rate has been fixed at 9.75%.
India's biggest bank in terms of branch network State Bank of India (SBI) rose 1.56% after bank's Chairman O P Bhatt said interest rates will remain stable for next six months. It is difficult to say whether rates have bottomed out, he said
Among other PSU banks, Punjab National Bank, Bank of India, India Overseas Bank, Union Bank of India, rose by between 0.43% to 2.53%.
Metal stocks rose on a view that the global economy was on a recovery path. Steel Authority of India, Jindal Steel & Power, Sterlite Industries, National Aluminum Company, Hindalco Industries rose by between 0.09% to 3.07%.
India's largest steel maker by sales Tata Steel rose 0.5% on bargain hunting after Thursday's more than 5% fall triggered by hefty losses reported by the company. Tata Steel reported a net loss of Rs 2208.68 crore in Q1 June 2009 on a consolidated basis compared with a net profit of Rs 3900.90 crore in Q1 June 2008. Total income fell 46% to Rs 23496.21 crore in Q1 June 2009 over Q1 June 2008. The result was announced during market hours on Thursday, 27 August 2009.
Realty stocks rose on reports demand for residential projects in major cities is picking up on lower home loan rates, property price cuts by developers and a recovery in the job market. Omaxe, Indiabulls Real Estate, Unitech, DLF and Ackruti City rose by between 0.3% to 9.25%.
Realty market had slumped last year amid a global credit crunch and buyers fearing job losses.
Construction, capital goods and cement shares rose on government's thrust on infrastructure. 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.
Bharat Heavy Electricals, Punj Lloyd, Praj Industries, ABB, Thermax, Siemens, BEML, rose by between 0.05% to 5.48 %
India's largest engineering & construction firm by sales Larsen & Toubro rose 0.92% after the company's Chairman said the company won road projects worth Rs 1400 crore last week.
From the construction space, IVRCL Infrastructure & Projects, Nagarjuna Construction Company, Valecha Engineering rose by between 0.61% to 10%.
From the cement pack, UltraTech Cement, ACC, Birla Corporation J K Lakshmi Cement, Dalmia Cement, Mysore Cement, Andhra Cement, Madras Cement, Mangalam Cement, J K Cement rose by between 1.42% to 20%.
FMCG stocks dipped on concerns deficient monsoon rains may crimp rural sales. FMCG firms derive a substantial revenue from rural India. ITC, Marico, Nestle India, Tata Tea, United Spirits fell by between 1.13% to 2.1%.
IT stocks fell on profit taking after recent strong gains triggered by hopes of a recovery in US economy. US is the biggest market for IT firms. India's third largest software services exporter Wipro fell 0.77% even as its ADR rose 0.62% on Thursday.
India's second largest software services exporter Infosys Technologies fell 0.1% even as its American depository receipt (ADR) rose 1.38% on Thursday, 27 August 2009. A foreign brokerage has reduced its rating on the stock 'underweight' from 'equal-weight', saying the stock's valuation is 'rich'. India's largest software services exporter TCS fell 0.75%.
In one of the largest deals, the top-three Indian vendors Infosys, TCS and Wipro along with IBM Corp bagged a slice of the $1.5 billion five year information technology (IT) outsourcing contract from British Petroleum Pcl (BP), one of the world's largest integrated oil and gas companies. The companies announced the BP deal after trading hours on Wednesday.
None of the three companies announced the order size. BP has been consolidating its IT vendors for the past 12 months, with goals to simplify its processes and improve service quality.
Meanwhile, the world's biggest oil company ExxonMobil is reportedly in talks with Indian technology firms and multinational vendors to outsource IT contracts worth up to $1 billion.
Telecom stocks rose after the government on Thursday fixed Rs 3500 crore as a base price for all-India third-generation spectrum. India's largest mobile phone company by sales Bharti Airtel jumped nearly 4.39% extending Thursday's gains on reports South African mobile operator MTN wants to conclude a proposed tie-up with Bharti Airtel quickly to end any doubt about the deal. Last week, Bharti and MTN extended, for a second time, talks aimed at creating the world's third-biggest mobile company.
The two firms agreed to extend talks to 30 September 2009, after previously extending discussions by a month to 31 August, as they negotiate a $23 billion cash and share-swap deal aimed at an eventual full merger.
The government has also decided to fix Rs 1750 crore as the base price for auctioning for WiMAX spectrum for wireless broadband services. Telecom Minister A Raja said the government will get at least Rs 25000 crore ($5.1 billion) from the sale of these auctions which will be held within 90 days.
India's second largest mobile telecom player by sales Reliance Communications rose 0.76% after the company signed a deal with S Tel to share telecom infrastructure.
Auto stocks rose on slight improvement in India's annual monsoon. Auto firms derive substantial revenue from the rural sector. Maruti Suzuki, India's top car maker by sales rose 0.6%. The company expects its sales to rise more than 10% till October 2009, its chairman said on Friday, after growing sales at over 14% during four months to July 2009
India's largest bike maker by sales Hero Honda Motors rose 2.25% after the company said on Thursday it will launch 9 new models by March 2010. India's second largest bike maker by sales Bajaj Auto rose 2.17%.
India's largest truck marker by sales Tata Motors rose 0.76%. As per reports, the company's plants are running at up to 65% capacity and the firm is cautiously optimistic on sales despite the weak monsoon. The company has reportedly come to the public for the second time to raise about Rs 1,500 crore via fixed deposit schemes, offering up to 9.88% annual interest for a three-year deposit.
Shares of export oriented sectors fell on profit taking after Thursday's surge. The government extended tax sops for exports in its new foreign trade policy announced on Thursday. From the textile pack, Gokaldas Exports, and Raymond fell by between 0.22% to 2.92%.
From the leather sector, Bhartiya International, Mirza Tanneries, Liberty Shoes Crew Bos fell by between 2% to 5.8%.
Gitanjali Gems, Shrenuj & Company, Vaibhav Gems, SB&T International fell by between 2.96% to 4.74% from the gems and jewellery sector
Shares of tea makers fell on profit taking after a recent surge due to jump in tea prices caused by fall in production. Assam Tea Company, Warren Tea, McLeod Russel and Harrisons Malayalam fell by between 2.93% to 3.31%.
Unitech clocked the highest volume of 3.15 crore shares on BSE. Cals Rfineries (2.97 crore shares), IFCI (2.16 crore shares), Mahindra Satyam (1.5 crore shares) and Suzlon Energy (1.26 crore shares) were the other major volume gainers in that order.
Unitech clocked the highest turnover of Rs 312.16 crroe on BSE. Tata Steel (Rs 226.39 crore), DLF (Rs 212.13 crore), Aban Offshore (Rs 198.25 crore) and Reliance Capital (Rs 184.94 crore) were the other major turnover toppers in that order.
Grey Market Premiums - Oil India, NHPC, Jindal Cotex, Globus Spirits
NHPC 36
4.5 to 5.50
Jindal Cotex 70 to 75
5 to 5.50
Globus Spirits Ltd. 90 to 100
7 to 8
Oil India 950 to 1050
140 to 150
Pre Session Commentary - Aug 28 2009
Today domestic markets are likely to open negative as Asian markets are trading mixed. There is hardly any guidance from US or either Asian markets and therefore a subdued opening is likely to occur in domestic markets. The domestic benchmark indices are already at peak levels and any upward movement is less likely to happen, however there is no negative news as well that would erupt selling pressure. In the telecom space, the government has finally fixed the 3G spectrum bid price at Rs.3,500 crore that will help the government to fetch Rs. 25,000 crore from the overall auction. The domestic markets are likely to trade range bound today.
On Thursday, domestic markets closed marginally higher after a subdued session. Domestic market ended the day on flat note after making recovery from initial lows. After exhibiting weakness during the early trading, the benchmark Index rebounded in afternoon after Finance Minister Pranab Mukherjee said the economy is showing some positive signs. He expects more than 6% growth in the year ending March 2010 and over 8% growth in the year ending March 2011. However, market was volatile on the day of settlement of the August F&O series. Meanwhile, inflation rose to minus 0.95% for the week ended August 15 from minus 1.53% in the previous week. In addition, the government today unveiled its Foreign Trade Policy but did not announce any major sops for any sector. The BSE Sensex ended above 15,750 level and NSE Nifty closed above 4,650 mark.
The BSE Sensex closed slightly higher by 11.22 points at 15,781.07 and NSE Nifty ended marginally up by 7.35 points at 4,688.20. BSE Mid Caps and Small Caps closed with gains of 21.95 and 28.71 points at 5,822.50 and 6,907.06 respectively. The BSE Sensex touched intraday high of 15,883.71 and intraday low of 15,685.49.
On Thursday, US stock markets closed higher. The markets opened on a subdued note and continued trading with low intensity despite some major economic data. The preliminary second quarter GDP report showed better-than-expected 1.0% annualized decline. Further, consumer spending during the second quarter was also better-than-expected at a contraction of 1.0%, which was an improvement from the 1.2% decline that was previously reported. The initial jobless claims recorded at 570,000, which is down 10,000 from the previous week and in-line with expectations. Meanwhile, continuing claims is at 6.13 million, below expectations and down more than 100,000 from the previous week. US light crude oil futures for October delivery closed at $72.49 per barrel up by 1.5% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 37.11 points at 9,580.63, NASDAQ index inclined by 3.30 points to 2,027.73 and the S&P 500 (SPX) closed high by 2.86 points at 1,030.98.
Indian ADR''s ended mixed on Thursday. In the telecom pack, Tata Comm was down 0.61% and MTNL was down 2.78%. In the banking space, ICICI Bank was up 0.03% but HDFC Bank was down 0.50%. In the IT sector, Infosys was up 1.38%, Wipro was up 0.62%, while Patni was down 5.23% and Satyam was down 0.91%. In the other space, Dr Reddys was down 1.49%, Tata Motors was down 0.33% but Sterlite was up 0.79%.
The FIIs on Thursday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 2,812.60 Crore and gross debt purchased stood at Rs 98.60 Crore, while the gross equity sold stood at Rs 1,776.70 Crore and gross debt sold stood at Rs 208.60 Crore. Therefore, the net investment of equity and debt reported were Rs 1,036.00 Crore and Rs (110.10) Crore respectively.
On Thursday, Indian Rupee closed at 48.91/92 per dollar, marginally stronger than its previous close at 48.93/94. Despite dollar demand from refineries and importers domestic currency managed to gain marginally as dollar weakened against other currencies in international market.
On BSE, total number of shares traded were 54.04 Crore and total turnover stood at Rs 6,581.02 Crore. On NSE, total number of shares traded were 110.08 Crore and total turnover was Rs 20,781.78 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 58942361 shares, followed by Suzlon Energy with 29441538, Tata Steel with 17018692, Hindalco with 6427171 and Reliance Capital with 6166674 shares.
On NSE Future and Options, total number of contracts traded in index futures was 777984 with a total turnover of Rs 17,637.68 Crore. Along with this total number of contracts traded in stock futures were 976445 with a total turnover of Rs 30,574.28 crore. Total numbers of contracts for index options were 1766,938 with a total turnover of Rs 41485.62 Crore and total numbers of contracts for stock options were 66782 and notional turnover was Rs 2,112 Crore.
Today, Nifty would have a support at 4,602 and resistance at 4,712 and BSE Sensex has support at 15,625 and resistance at 15,865
Technical Levels - Aug 28 2009
| S3 | S2 | S1 | Close | R1 | R2 | R3 | |
| Sensex Index | 15,670 | 15,697 | 15,726 | 15,781 | 15,837 | 15,865 | 15,892 |
| Nifty Index | 4,663 | 4,669 | 4,675 | 4,688 | 4,701 | 4,708 | 4,714 |
| ABB Ltd | 725 | 730 | 735 | 746 | 756 | 761 | 766 |
| ACC | 784 | 787 | 791 | 797 | 804 | 807 | 810 |
| Ambuja Cements | 95 | 96 | 97 | 99 | 101 | 102 | 103 |
| Bajaj Holdings | 454 | 457 | 461 | 467 | 474 | 477 | 481 |
| BHEL | 2,284 | 2,297 | 2,310 | 2,335 | 2,361 | 2,374 | 2,386 |
| Bharti Airte | 400 | 404 | 408 | 417 | 425 | 429 | 433 |
| Cipla | 254 | 258 | 262 | 269 | 277 | 281 | 284 |
| Dabur India | 120 | 121 | 121 | 123 | 124 | 125 | 126 |
| GAIL India | 332 | 335 | 338 | 343 | 349 | 352 | 355 |
| Grasim Ind. | 2,613 | 2,622 | 2,632 | 2,651 | 2,671 | 2,681 | 2,690 |
| HCL Tech | 296 | 300 | 305 | 313 | 321 | 325 | 329 |
| HDFC Bank | 1,421 | 1,430 | 1,439 | 1,457 | 1,475 | 1,484 | 1,493 |
| Hero Honda | 1,447 | 1,453 | 1,459 | 1,471 | 1,483 | 1,490 | 1,496 |
| Hindalco | 104 | 105 | 105 | 106 | 107 | 108 | 108 |
| Hindustan Unilever | 250 | 252 | 253 | 256 | 259 | 261 | 262 |
| ICICI Bank | 742 | 744 | 746 | 751 | 755 | 757 | 759 |
| Infosys Tech | 2,137 | 2,150 | 2,164 | 2,192 | 2,219 | 2,233 | 2,246 |
| ITC Ltd | 232 | 234 | 236 | 240 | 244 | 246 | 248 |
| L&T | 1,559 | 1,569 | 1,580 | 1,600 | 1,621 | 1,632 | 1,642 |
| MTNL | 94 | 95 | 95 | 96 | 96 | 97 | 97 |
| M&M | 792 | 799 | 807 | 823 | 839 | 847 | 854 |
| Maruti Suzuki | 1,389 | 1,395 | 1,402 | 1,416 | 1,430 | 1,437 | 1,443 |
| Mahindra Satyam | 109 | 110 | 111 | 114 | 117 | 119 | 120 |
| National Alumin | 334 | 338 | 342 | 349 | 356 | 360 | 363 |
| ONGC | 1,155 | 1,159 | 1,164 | 1,173 | 1,182 | 1,187 | 1,192 |
| Oriental Bank | 171 | 171 | 172 | 174 | 176 | 176 | 177 |
| PNB | 647 | 651 | 655 | 662 | 670 | 673 | 677 |
| Ranbaxy Labs | 329 | 331 | 334 | 339 | 343 | 346 | 348 |
| Reliance Capital | 809 | 815 | 822 | 836 | 850 | 857 | 864 |
| Reliance Comm | 258 | 259 | 260 | 263 | 266 | 267 | 268 |
| Reliance Energy | 1,126 | 1,129 | 1,133 | 1,140 | 1,146 | 1,150 | 1,153 |
| Reliance Inds | 2,017 | 2,023 | 2,029 | 2,042 | 2,055 | 2,062 | 2,068 |
| R Power | 156 | 157 | 158 | 160 | 162 | 163 | 163 |
| Siemens India | 479 | 483 | 487 | 494 | 501 | 505 | 509 |
| SBI | 1,723 | 1,730 | 1,738 | 1,754 | 1,769 | 1,777 | 1,785 |
| TCS | 530 | 534 | 539 | 548 | 557 | 561 | 566 |
| Tata Motors | 478 | 480 | 482 | 486 | 490 | 493 | 495 |
| Tata Power | 1,316 | 1,327 | 1,338 | 1,361 | 1,383 | 1,394 | 1,405 |
| Tata Steel | 413 | 419 | 424 | 436 | 447 | 453 | 458 |
| Tata comm | 504 | 508 | 512 | 519 | 526 | 530 | 533 |
| Wipro | 553 | 557 | 561 | 569 | 577 | 581 | 584 |
| Wire And Wireless | 20 | 20 | 20 | 21 | 21 | 21 | 21 |
| Zee Entertainment | 214 | 216 | 217 | 220 | 223 | 224 | 225 |
Daily News Roundup - Aug 28 2009
Bharti Airtel has reportedly agreed to a small sweetener in its offer to MTN; it has reportedly agreed to offer MTN shareholders roughly US$13.1bn in cash, while the remaining amount would be in the form of shares.(FE)
Government clears a proposal to allow NTPC to invite tenders for 11 units of 660MW each over the next 45 days.(BL)
Bharti-MTN deal contours may change; two companies talk to South Africa’s Central Bank on course to complete transaction. (ET)
JSW Group is in advanced talks to acquire a coal mine in Swaziland, Africa, at an estimated cost of nearly $350mn (ET)
Wipro has won two new outsourcing contracts estimated to be worth around $100mn each from Foster’s, Australia’s and Lavasa, a unit of HCC. (ET)
Exxon Mobil is in discussions with India’s top technology firms for outsourcing of several IT contracts worth up to $1bn, L&T Infotech and HCL Tech also in the fray for the same. (ET)
BHEL bags Rs1.9bn order from Oil India. (ET)
RIL gets gas rights to retail CNG to automobiles and pipe gas to households in 3 cities. (ET)
BSNL to offer US$500mn GSM contract to Ericsson.(BL)
Apollo Hospitals to get US$50mn loan from IFC.(BL)
BGR Energy Systems has bagged a Rs16bn order from the Chhattisgarh State Power Generation Company.(BS)
IVRCL Infrastructures & Projects has secured three orders including drinking water supply project in Mumbai, in all worth Rs5.8bn.(BS)
Nagarjuna Construction has secured three new orders aggregating Rs3.1bn.(BL)
Government to sell its 30% stake in Bharti Hexacom.(FE)
Mahindra Satyam BPO has bagged an outsourcing deal from Tata Teleservices for its newly-launched GSM services. (ET)
Pfizer India on Thursday said it would launch three or four more products in India by the next quarter. (ET)
Suven Life Sciences is in talks with four global pharma majors for a licensing deal for its Alzheimer drug Suvn-502. (ET)
Aurobindo Pharma get regulatory nod in US for making and marketing low-cost anti-infection drug Clindamycin Hydrochloride. (ET)
Government announces foreign trade policy for 2009-14; sets US$200bn export figure by March 2011.(BL)
Trade policy includes, amongst other things, incentives to capture 26 new markets in Africa and Latin America, duty-free import of capital goods for technological up gradation, dollar-denominated credit.(BL)
Industrial output registered a 7% growth in July, up from 6.4% in July 2008 and marginally lower than the 7.8% in June 2009.(FE)
Weak monsoon could stoke inflation, dampen growth, says RBI.(BL)
An empowered Group of Ministers fixes the base price for pan-Indian 3G spectrum at Rs35bn.(DNA)
India’s overall PC shipments for the second-quarter ended June 2009 touched 1.8mn units, logging a sequential growth of 5.2%.(BL)
RBI has held on to its 6% growth target despite a weak monsoon. (ET
Avoid ambition on the Street!
Ambition is a poor excuse for not having sense enough to be lazy.
The market has been moving up for close to five-months now. No harm in getting a little lazy with your fund allocation. Skyrocketing small-caps are often a sign of trouble ahead. With no clear signals from global markets, looks like we are going to have a subdued end to the week. Interest from foreign as well as local funds was quite anemic on Thursday. Today may not be much different.
We expect a cautious start and the usual choppy session. Most market players could ‘wait-and-watch’ before taking a fresh call. The near-term target on the Nifty is 4750-4800. For the Nifty to decisively cross the 5000-mark in the next few weeks, we would need very firm backing from global cues and an even stronger commitment from funds.
In the meantime, the party may continue on the side counters. Absence of fresh positive triggers could also keep a lid on further gains. At the same time, downside will be limited as plenty of players – who have missed out on the recent spurt - are ready to jump in.
FIIs were net sellers at Rs414.7mn in the cash segment on Thursday on a provisional basis while the local funds pumped in Rs292.2mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds turned net sellers at Rs5.15bn. On Wednesday, FIIs were net buyers at Rs10.36bn in the cash segment.
Meanwhile, borrowing in dollars has become cheaper than borrowing in Japanese yen for the first time in 16 years, a sign that fear in the credit markets has eased significantly. Signs that the battered US housing market is stabilizing, prompted investors to commit about $12bn of fresh money to a wide range of fund groups in late August. According to EPFR Global, 21 of the 24 major fund groups posted inflows for the week ending Aug. 26.
Global markets danced to the tune of the Shanghai Composite index last week. But, lately the movement in the Chinese market hardly causes a flutter in other world markets. By the way, the benchmark Chinese index is down 3% today.
The head of Britain's financial services regulator says he would back the idea of a global tax on financial transactions. He also adds that the financial sector has grown too big.
US stocks rose on Thursday, with the Dow extending its winning streak to eight straight sessions in a thinly-traded advance fueled by bank shares and Boeing. Dell reported weaker sales and earnings that beat expectations, in a profit report that was released minutes before the close of trading, ahead of schedule. Dell shares gained 6.5% in extended-hours trading.
The Dow Jones Industrial Average added 37 points, or 0.4%. The blue-chip average ended higher for the eighth session in a row, marking its longest winning streak since the period ended April 10, 2007. The S&P 500 index gained 3 points, or 0.3%. The Nasdaq Composite added 3 points, or 0.2%.
In Wednesday's session, the Dow, S&P 500 and Nasdaq had closed at their highest levels since last fall.
Wall Street has essentially risen for the last five months, with the S&P 500 ending Wednesday's session up 52% from the 12-year low it hit on March 9. But the pace of the run, coupled with light August trading volume, has left markets churning over the last two weeks.
Better-than-expected economic news - and a healthy infusion of monetary and fiscal stimulus - drove the rally. But the latest batch of economic reports have had less of an impact on investor sentiment.
Gross Domestic Product declined at a 1.0% annual pace in the second quarter, unchanged from the initial reading last month. Economists had forecast a decline in GDP to the tune of 1.5%. In the first quarter, GDP declined at a 6.4% annualized rate.
The number of Americans filing new claims for unemployment last week dipped to 570,000 from a revised 580,000 the previous week. Economists had predicted claims to fall to 565,000.
The price of oil turned higher, erasing morning lows. Oil hit 10-month highs earlier in the week. US light crude oil for October delivery rose $1.06 to settle at $72.49 a barrel on the New York Mercantile Exchange.
Shares of AIG rallied 27% after the company's CEO told Reuters that he doesn't support a fire sale of the insurer's assets. New CEO Robert Benmosche said in a year, people will say the bailed-out insurer is performing well. The stock has jumped 274% in August alone.
Dow component Boeing said it will have its long-in-the works 787 Dreamliner in the air by the end of the year and that it will make deliveries in the fourth quarter of 2010. The airplane manufacturer said it will take a non-cash charge of $2.5 billion, or $2.21 per share, in the third quarter. Shares rallied 8.7%.
Toll Brothers reported a quarterly loss of $2.93 per share, versus a loss of 18 cents a year ago. The luxury homebuilder was expected to report a loss of $1.79 per share. Toll Brothers also reported a drop in revenue that nonetheless managed to top estimates.
The number of financial institutions on the government's watch list surpassed 400 in the second quarter, the highest level in 15 years, the government said.
Treasury prices slipped, raising the yield on the benchmark 10-year note to 3.47% from 3.43% late on Wednesday.
Treasury sold $42 billion of 2-year notes on Tuesday, $39 billion of five-year notes on Wednesday. The sale of $28 billion of 7-year notes on Thursday saw a weaker-than-expected demand, but it didn't seem to impact the bond market much.
COMEX gold for December delivery rose $6 to settle at $951.80 an ounce. In currency trading, the dollar rose versus the euro and fell versus the Japanese yen.
Reports are due on Friday on July personal income and spending from the Commerce Department and August consumer sentiment from the University of Michigan.
European shares lost ground, as losses for liquor giant Diageo and weakness for automakers offset gains scored by Credit Agricole and utilities. The pan-European Dow Jones Stoxx 600 index fell 0.5% to 235.24, extending a Wednesday decline that had snapped a four-session winning run.
Germany's DAX 30 index was down 0.9% to 5,470.33, while the French CAC-40 index lost 0.5% to 3,648.53 and the UK's FTSE 100 rose slipped 0.4% to 4,869.35.
The NSE Nifty hit the 4,700 mark for the first time since first week of August, 2009 however was unable to hold on to the psychological level as the bulls and bears fought it out on F&O expiry day.
Volatile trades were witnessed throughout the day with the small-cap and mid-cap stocks continuing to play catch-up with their frontline counterparts. The Consumer Durables, Capital Goods and Pharma stocks were among the major gainers.
IT major like Infosys, TCS and Satyam attracted fresh buying while, Retail stocks like Shoppers Stop and Pantaloon Retails posted healthy gains.
The export-oriented sectors hogged the limelight as the government announced the Foreign Trade Policy. The Union Commerce Minister Anand Sharma said that the Government is aiming to achieve an export target of US$200bn by the end of fiscal year 2010-11. This will represent an increase of 15% over the export of fiscal year 2009-10. India's exports reached US$168bn in the fiscal year 2008-09 from US$63bn in FY04 and is expected to remain flat in the year ending March 2010. Click here to read more...
The BSE Sensex ended higher by 11 points at 15,781 after touching a high of 15,854 and a low of 15,685. The index opened at 14,712 against the previous close of 15,770. The NSE Nifty gained by 7 points to shut shop at 4,688.
In Asia, the Nikkei in Japan slipped by 1.5% at 10,474 while Australia's S&P/ASX ended flat at 4,450. The Hang Seng index in Hong Kong was down 1% at 20,242. Shanghai index in China fell by 0.8% at 2,964.
In Europe, stocks were trading flat with a positive bias. The FTSE in the UK was up 0.2%. The DAX in Germany was up 0.2% and the CAC 40 index in France was up 2%.
Coming back to India, among the BSE sectoral indices, the Consumer Durables index was the top gainer, gaining 4.1%, followed by the Capital Goods index that was up 1.1%. The BSE Pharma index up 1.1% and the BSE Teck index was up 0.7%.
The BSE Mid-Cap index gained 0.4% and the BSE Small-Cap index gained by 0.4%.
Among the 30-components of Sensex, 15 stocks ended in the green and 15 ended in the negative terrain. Among the major gainers were Bharti Airtel, Wipro, Tata Power, L&T, Sterlite and BHEL.
On the other hand, Tata Steel, Tata Motors, HUL, Hero Honda and DLF were among the major laggards.
Outside the frontline indices, the big gainers in the broader market were GMDC, Videocon Ind, Divis Labs, Glaxo, Sintex and Mundra Port. On the other hand, losers included Shriram Transport, Rolta, RNRL, RIIL and LITL.
Tata Steel group posted a loss of Rs22.1bn in the Q1 as against Rs39bn profit in the same period last year. Group sales were at Rs231.8bn as against Rs422.7bn a decline of 46.5% YoY. Other income was at Rs2.04bn versus Rs526.9mn in the corresponding year.
Shares of Tata Steel lost by over 5% to Rs436. The stock opened at Rs456 and made an intra-day high of Rs459 and a low of Rs426. Total traded volumes stood at 46mn shares.
Bharti Airtel is reportedly planning to offer MTN Group US$13.1bn in cash and shares for acquiring a 49% stake in the South African telecom major and the two sides are close to an agreement, according to The Wall Street Journal (WSJ). There is no certainty that the MTN shareholders will agree to the Bharti Airtel offer, and could ask for a higher offer from the Indian company, the US-based financial newspaper said in its online edition today. Shareholders holding a combined 75% in MTN must approve the deal.
The deal’s outlined in May this year involved a complex structure in which both the firms would pay cash and equity for stakes in each other. As per that deal, Bharti Airtel was to get a 49% stake in MTN and the South African telco and its shareholders were to get a 36% economic interest in the Indian counterpart. According to the original deal, Bharti Airtel was also to get US$2.9bn in cash from MTN.
Shares of Bharti Airtel ended higher by 3% to Rs416.5. The stock opened at Rs401 and made an intra-day high of Rs422 and a low of Rs401. Total traded volumes stood at 0.64mn shares.
Shares of BHEL gained by 1.5% to Rs2329 after the company announced that it won order worth Rs1.9bn. The stock opened at Rs2304 and made an intra-day high of Rs2342 and a low of Rs2275. Total traded volumes stood at 73,000 shares.
Shares of IVRCL Infra erased early gains and ended lower by 1.2% to Rs359. The stock shot up to an intra-day high of Rs369 after the company bagged an order worth Rs5.83bn water project related to drinking water supply in Mumbai and circulating water supply systems for power plants.
Total traded volumes in the stock stood at 0.45mn shares on the BSE.
Shares of Indiabulls Real Estate lost by over 3.5% to Rs270 after a redevelopment project in Maharashtra state that the company may be involved in may be scrapped, stated reports. The stock opened at Rs275 and made an intra-day high of Rs275 and a low of Rs263. Total traded volumes stood at 2.7mn shares.
Shares of HT Media erased gains and ended lower by 0.5% to Rs118. According to reports, the company may spin off its Hindi-language business. The stock shot up by over 6% to hit an intra-day high of Rs128.
The company may decide in two to three months whether to spin off the Hindi-language business, which accounts for 30% of sales, CEO Rajiv Verma said.
Hindustan Zinc announced that it hiked the prices of zinc and lead. The price of zinc was increased by Rs1,300 per share or 1.2%, to Rs106,900per metric ton. Lead prices were also increased by Rs9,200 or 8.7% to Rs114,800 per a ton.
The stock was down by 2.6% to Rs726. It opened at Rs745 and made an intra-day high of Rs746 and a low of Rs721. Total traded volumes stood at 20,000 shares.
Cycle manufacturing and distributing companies have hogged the limelight in the past couple of trading session with the stocks like Atlas Cycles and Hercules Hoist among the major gainers.
Shares of Atlas Cycles have shot up by over 5% and Hercules Hoist has rallied by over 21% in past 5 days.
Shares of BGR Energy gained by 2.5% to Rs460 after the company was awarded the Balance of Plant contract for 2 x 500 MW Marwa Thermal Power Project worth Rs16.33bn.
Chhattisgarh State Power Generation Company Ltd., is setting up the 2 x 500 MW Marwa Thermal Power Project at Marwa of Janjgir - Champa District in Chhattisgarh State.
The stock opened at Rs449 and made an intra-day high of Rs479 and a low of Rs449. Total traded volumes stood at 0.36mn shares.
Market may open lower tracking weak Chinese stocks
The key benchmark indices may open lower tracking weakness in Chinese stocks. The investors may also take home some cash after recent surge in indices. However, slight improvement in progress of India's annual monsoon may provide support to market.
Volatility ruled the roost on Thursday 27 August 2009 as the key benchmark indices notched up small gains as traders rolled over positions in the derivatives segment from August 2009 series to September 2009 series. The market rose for the sixth straight day in a row. The BSE 30-share Sensex was up 11.22 points or 0.07% to 15,781.07 on Thursday. The market has surged in the past six days supported by positive global cues. The BSE Sensex has risen 971.43 points or 6.55% to 15,781.07 on Thursday, 27 August 2009 from 14,809.64 on 19 August 2009.
As per provisional data, foreign funds on 27 August 2009, sold shares worth a net Rs 41.47 crore. Domestic funds bought shares worth a net Rs 29.22 crore
India's monsoon rains were 5 % below average in the week to 26 August 2009, coming in close to normal for the second successive week after a prolonged dry spell, the Meteorological Department said on Thursday. Rainfall since 1 June to 26 August was 25 % below normal, improving slightly from a deficit of 26 % a week earlier. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
India's deficient monsoons may affect the inflation outlook more than growth prospects, the Reserve Bank said on Thursday, adding that prolonged expansionary fiscal and monetary policies threatened to push up prices and eventually crimp growth.
Asian stocks were mixed today. The key benchmark indices in China, Hong Kong and Singapore fell by between 0.23% to 2.55%. The key benchmark indices in Taiwan and South Korea rose by between 0.32% to 1.56%.
Japan's Nikkei rose 0.54% even as Japan's unemployment rate rose to a record 5.7 % in July 2009 and deflation worsened, dealing a blow to Prime Minister Taro Aso on the eve of an election that polls indicate his ruling Liberal Democratic Party will lose.
The US markets closed with modest gains on Thursday, 27 August 2009 helped by a late rally among bank stocks as well as higher oil prices.
The Dow rose 37.11 points, or 0.4%, to close at 9,580.63. The S&P 500 index rose 2.86 points, or 0.3%, to 1,030.98, while the Nasdaq Composite Index rose 3.30 points, or 0.2%, to 2,027.73.
In economic news, preliminary second quarter GDP report showed a better-than-expected 1% annualized decline. Consumer spending during the second quarter also topped expectations by contracting 1%.
Initial jobless claims came in at 5,70,000, which is down 10,000 from the previous week and essentially in-line with expectations. Meanwhile, continuing claims came in at 6.13 million, below expectations and down more than 100,000 from the previous week.
Crude pares earlier losses
Price rises as the dollar weakens
Crude prices erased earlier losses and ended higher for the day on Thursday, 27 August, 2009. Prices crawled up today following weakness from the US dollar.
On Thursday, crude-oil futures for light sweet crude for October delivery closed at $72.49/barrel (higher by $1.06 or 1.5%). During intra day trading, crude fell to a low of $69.83/barrel. Last week, crude ended higher by 6.1%.
For the month of July, 2009, crude ended lower by a marginal 0.6%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 53% since then. Year to date, in 2009, crude prices are higher by 48.5%.
In the currency market on Thursday, the dollar index which weighs the value of dollar against a basket of six other currencies fell by 0.2%.
The preliminary second quarter GDP reading showed that the U.S. economy contracted at an annualized rate of 1%, unrevised from the advance reading and better than expected. Consumer spending was revised modestly higher to show a 1.0% decline, which was also a bit better than expected.
EIA had reported yesterday that U.S. crude inventories rose 200,000 barrels in the week ended 21 August, as imports jumped 14% from the prior week. In the weekly report, the EIA also reported gasoline stockpiles fell 1.7 million barrels last week while distillate fuels, which include diesel and heating oil, rose 800,000 barrels.
The report also detailed that total gasoline supplied, an implied gauge of demand for the fuel, fell 1.1% from a week ago to 9.1 million barrels a day. But total petroleum products supplied rose slightly, to 19.5 million barrels a day, as small increases in jet fuel and residual oil demand offset the decline in gasoline.
Also at the Nymex on Thursday, September reformulated gasoline rose 4.88 cents, or 2.5%, to end at $2.0314 a gallon. September heating oil gained marginally to end at $1.8592 a gallon after finishing at $1.8520 on Wednesday.
Natural gas for September delivery dropped 6.70 cents to end at $2.843 per million British thermal units on the Nymex. EIA reported today that gas in storage rose by 54 billion cubic feet to stand at 3,258 Bcf during the week ended 21 August, 2009.
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 12 (0.34%) at Rs 3,504/barrel. Natural gas for September delivery closed lower by Rs 5.1 (3.2%) at Rs 155.1/mmbtu.
Precious metals register mixed end
Gold shines but silver drops little
Precious metal prices ended mixed on Thursday, 27 August, 2009. Gold prices rose today as the dollar slipped. But silver prices fell marginally.
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 Thursday, gold for December delivery ended at $947.4, higher by $1.6 (0.2%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by almost 0.6%. Year to date, gold prices are higher by 6.8%.
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 (8.5%) since then.
On Thursday, Comex silver futures for September delivery fell by 3 cents (0.2%) to $14.22 an ounce. Last week, silver ended lower by 3.9%.
Silver ended 2.7% higher for July, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 27.8% this year. For 2008, silver had lost 24%.
In the currency market on Thursday, the dollar index which weighs the value of dollar against a basket of six other currencies fell by 0.2%.
The preliminary second quarter GDP reading showed that the U.S. economy contracted at an annualized rate of 1%, unrevised from the advance reading and better than expected. Consumer spending was revised modestly higher to show a 1.0% decline, which was also a bit better than expected.
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 6 (0.03%) at Rs 15,027 per 10 grams. Prices rose to a high of Rs 15,064 per 10 grams and fell to a low of Rs 14,980 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 94 (0.4%) lower at Rs 23,296/Kg. Prices opened at Rs 23,352/kg and fell to a low of Rs 23,124/Kg during the day's trading.
FIIs step up buying
Inflow of Rs 1035.90 on 26 August 2009
Foreign institutional investors (FIIs) bought shares worth a net Rs 1035.90 crore on Wednesday, 26 August 2009, as against a meagre outflow of Rs 53.60 crore on Tuesday, 25 August 2009. e
FII inflow of Rs 1035.90 crore on 26 August 2009 was a results of gross purchases Rs 2812.60 crore and gross sales Rs 1776.70 crore. The BSE Sensex rose 81.38 points or 0.52% to 15,769.85 on that day.
FII inflow in August 2009 totaled Rs 1,679.50 crore (till 26 August 2009). Foreign funds had bought equities worth Rs 11,625.20 crore in July 2009. FII inflow in calendar year 2009 totaled Rs 37,849.20 crore (till 26 August 2009).
There are a total of 1694 foreign funds registered with the Securities & Exchange Board of India (Sebi).
Bombay Rayon Fashions
We recommend a buy in Bombay Rayon Fashions from a short-term perspective. It is apparent from the charts of the stock that it has been on medium-term up trend from July low of Rs 140. Moreover, the stock has been on an intermediate-term uptrend since March low of Rs 80. On August 27, the stock jumped up 7 per cent, accompanied with good volume penetrating key resistance at Rs 200. It is trading well above 21- and 50-day moving averages. The daily relative strength index ( RSI) has entered in to the bullish zone. Beside, both daily and weekly moving average convergence and divergence indicators are hovering in the positive territory. Our short-term outlook on the stock is bullish. We anticipate the stock’s uptrend to prolong until it knocks our price target of Rs 226 in the forthcoming trading sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 194.
via BL
TRADING STRATEGY FOR 28TH AUGUST 2009
(Based on technical by O P AGARWAL)
Markets end flat with cautious optimism
The market opened marginally lower yesterday on weak global cues but soon recovered and moved into positive territory on selective buying in frontline stocks. However, a fresh bout of selling at higher levels thereafter pulled down the Sensex in the red again. The market appeared lackluster throughout the session with bouts of buying and selling intermittently. Investors appeared reluctant to build fresh positions instead pressed sales at higher levels in the absence of any new trigger. Market participants were engaged in shifting positions to new September derivative series whereby Nifty future rollover is estimated to be around 69-71%. Meantime, the commerce minister unveiled the five-year foreign policy, setting a target of US$ 200 billion worth exports for next fiscal. Under the policy the government extended tax holiday and duty refund for exporters, while allowing duty free capital goods import. Meantime, the Sensex after dipping to a low of 15685 in morning trades progressively moved up into the positive territory rising to 15,853 an hour past noon, but gave up most of its gains and closed with paltry gain of 11 points at 15,781. The Nifty closed the session flat with marginal gain of 7 points at 4688 making a low of 4645 and a high of 4707 in intra day trades. Pharmaceutical, capital goods and select IT shares remained firm throughout the session yesterday besides power, auto and oil stocks finding support at lower levels. The market will open today with new derivative series of September which is hoped to remain steady. However, readers are advised to watch the market trend before building large positions.
NIFTY FUTURE (Last close 4697.80)
The counter closed flat yesterday with the expiry of August derivative series. The market remained lackluster throughout the session yesterday with bouts of buying and selling at intervals. The counter opens today with new September derivative series which is hoped to remain steady. Chart patterns for NF appear positive but to keep up with the upward momentum the counter needs to remain and trade above 4717.75 whereby it may move further to 4737/4762. Strong support for NF exists at 4659.25 which if breached decisively NF may slide to 4642/4619.
RELIANCE CAPITAL FUTURE (Last close 841.20)
The company provides corporate advisory services like project finance, management of issues for raising capital and managing exposure to currencies and interest rates. It is also involved in custodian and depository activities, asset management, insurance, and real estate development. The company which holds 100% in Reliance Life Insurance is contemplating to come out with IPO once a policy decision is taken by the government. Meantime the stock of the company after moving range bound during the past three trading sessions closed yesterday flat with marginal gain with very high volume. The stock appears positive on charts and may move up to 858/873 once it trades and remains above 845.75. Strong support for the stock exists at 834.50.
ICSA INDIA FUTURE (Last close 186.80)
The company is engaged in providing software development services and technology solutions for the power, telecommunication and other sectors. The company also provides rural electrification, construction of sub-stations and conversion of LT line to HT lines. The company at its Board meet held on August 17, 2009, inter alia, has recommended declaration of Dividend @ 70% for the financial year 2008-2009, subject to the approval of Members at the ensuing AGM. The company has Rs 2,000 crore strong order book to be executed within next two years. The company earns over 90% of its revenues from public sector entities which comes from two streams — embedded solutions and infrastructure services. Meantime, the stock after remaining range bound during the past few trading sessions closed yesterday with high volumes gaining over 2%. The stock appears positive on charts and may move up to 193/197 once it trades and remains above 187.75. Strong support for the stock exists at 184.25.
Readers may avoid trading in the above recommended stocks unless, they have risk taking capacity.
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