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Tuesday, September 01, 2009
Post Session Commentary - Sep 1 2009
Domestic market pared all its initial gains to close the day on downbeat note on sustained selling pressure witnessed in key stocks. Market turned southward and continued to extend losses tracking lower European markets along with weak US index futures that led selling pressure in the domestic bourses. However, market was firm during the early trading as the Asian stocks were higher on strong Chinese manufacturing sector data. The China’s Purchasing Managers’ Index increased to a seasonally adjusted 54 in August from 53.3 in July. Meanwhile, India’s exports dropped by 28.4% in July as against the same month last year. The BSE Sensex ended below 15,600 level and NSE Nifty closed below 4,650 mark.
The market today opened significantly higher along with other Asian markets. Moreover, the US stock markets closed lower on Monday due to sustained selling pressure led by Chinese market that plunged yesterday on worries about the impact of fragile bank lending on the economy. Further, Indian benchmark indices continued to trade in positive terrain till mid session on significant buying emerged across the board. However, market was unable to hold the momentum and gave up all gains in line with unfavorable European stocks. Profit booking at higher level forced market to extend last session’s weakness and close with losses. From the sectoral front, most of the selling was witnessed in Realty, Metal, Power, Capital Goods, Pharma and PSU stocks. BSE Midcap and Smallcap stocks also remained out of favour. However, Auto and IT stocks were unable to gain favour from the market.
Among the Sensex pack 23 stocks ended in red territory and 7 in green territory. The market breadth indicating the overall health of the market remained negative as 1658 stocks closed in red while 1151 stocks closed in green and 62 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 115.45 points or (0.74%) at 15,551.19 and NSE Nifty ended down by 36.75 points or (0.79%)at 4,625.35. BSE Mid Caps and Small Caps closed with losses of 85.48 and 105.86 points at 5,797.49 and 6,891.17 respectively. The BSE Sensex touched intraday high of 15,923.09 and intraday low of 15,475.28.
Losers from the BSE Sensex pack are ACC Ltd (3.62%), Sterlite Industries (2.88%), HDFC (2.49%), BHEL (2.31%), JP Associates (2.25%), ONGC Ltd (1.98%), Hindalco (1.94%), Reliance Infra (1.93%), DLF Ltd (1.77%) and Tata Steel (1.61%).
Gainers from the BSE Sensex pack are Maruti Suzuki (7.61%), Tata Motors (5.82%), Herohonda Motors (1.55%), Wipro Ltd (1.50%), RCom (1.34%) and HUL (0.71%).
India''s exports dropped by 28.4% in July as against the same month last year. Export contracted for the tenth month in a row, as overseas shipments were hit by slowdown in major global markets like the US and Europe. Exports declined to $13.62 billion in July from $19.03 billion in the same month last year, according to the government data. Imports also reported fall for the seventh straight month by 37.1% to $19.62 billion in July from $31.18 billion over the year-ago month.
On the global markets front, the Asian markets that opened before the Indian market, ended in green. Asian stocks rebounded with rise in Chinese stocks on data showing that China''s manufacturing growth accelerated in August to its fastest rate this year. The Purchasing Managers’ Index rose to a seasonally adjusted 54 in August from 53.3 in July. Shanghai Composite, Hang Seng, Nikkei 22, Singapore''s Straits Times Index and Seoul Composite closed up by 15.98, 148.11, 37.53, 3.49 and 31.21 points at 2,686.72, 19,872.30, 10,530.06, 2,596.39 and 1,623.06 respectively.
European markets, which opened after the Indian market, are trading in red on recovery concerns. The unemployment rate in the euro zone increased to the highest level for more than a decade to 9.5% in July from 9.4% in June. Further, the U.K.''s manufacturing sector unexpectedly contracted in August, as companies shed jobs and new orders slowed. In Frankfurt the DAX index is trading lower by 88.30 points at 5,376.31 and in London FTSE 100 is trading down by 57.61 points at 4,851.29.
The BSE Realty index closed lower by (3.07%) or 135.56 points at 4,278.03. Losers are Penland Ltd (5.98%), Ansal Infra (5.77%), Mahindra Life (5.37%), Indiabull Real (5.36%) and Sobha Dev (5.18%).
The BSE Metal index ended down by (1.94%) or 240.76 points at 12,142.16 as Jai Corp Ltd (4.82%), Ispat Industries (4.47%), Gujarat NRE C (3.67%), Sterlite Industries (2.88%) and Jindal Saw (2.65%) ended in red.
The BSE Power index decreased by (1.66%) or 49.70 points at 2,942.24. Losers are Crompton Greaves (3.56%), GMR Infra (3.46%), Siemens Ltd (2.46%), BHEL (2.31%) and ABB Ltd (2.17%).
The BSE Capital Goods index dropped by (1.64%) or 215.53 points at 12,935.62. Losers are Punj Lloyd (4.02%), Crompton Greaves (3.56%), Elecon Eng C (3.32%), Bharat Bijli (2.86%) and BEML Ltd (2.72%).
The BSE Pharma index closed lower by (1.38%) or 53.86 points at 3,847.07. Main losers are Lupin Ltd (3.70%), Sterlite Biotec (3.07%), Orchid Chem (2.96%), Opto Circuit (2.93%) and Divi’s Lab (2.37%).
The BSE Auto index gained (2.45%) or 144.21 points at 6,022.44. Gainers are Maruti Suzuki (7.61%), Tata Motors (5.82%), Amtek Auto (5.52%), Bosch Ltd (1.71%) and Herohonda Motors (1.55%).
Kalpataru Power Transmission Ltd lost 0.55%. The company has recently secured orders worth Rs. 1400 Crores (approx) from Maharashtra State Electricity Transmission Co. Ltd (MSETCL) arid North East Transmission Co. Ltd (JV of PGCIL, ONGC, JLFS and NHR states) for transmission and substation projects.
Hindustan Construction Co Ltd ended down by 3.90%. The company has received a Letter of Intent from North Eastern Electric Power Corporation Ltd, under Pare Hydro Electric Project (110 MW), Arunachal Pradesh.
Nagarjuna Construction Company Limited decreased by 0.88%. The company has secured two new orders aggregating Rs. 481 crores.
Ranbaxy Lab lost 2.44%. Daiichi Sankyo Company limited and the company announced that Terapia S.A, ("Terapia Ranbaxy"), a subsidiary of Ranbaxy in Romania, will market the osteoporosis medication, Kvista in Romania. This is the first lime in Europe that Daiichi Sankyo and Ranbaxy are leveraging synergies generated through the Hybrid Business Model.
NHPC closed at Rs. 36.70, at a premium compared with the IPO price of Rs. 36 per share. A huge volume of 19.36 crore shares was recorded in the stock on BSE.
Maruti Suzuki India Limited advanced by 7.61%. India''s car market leader sold a total of 84,808 vehicles in August 2009, with growth of 41.6% in the month. This includes exports of 14,847 units, the highest ever-monthly export in the company''s history.
BSE Bulk Deals to Watch - Sep 1 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
1/9/2009 524412 AAREY DRUGS PRAFULLABEN AMRUTBHAI SONI B 40661 43.64
1/9/2009 524412 AAREY DRUGS KAUSHIK SHAH SHARES & SEC. LTD S 25000 42.50
1/9/2009 532919 ALLIED COMP VICKY RAJESHBHAI JHAVERI S 1900000 0.63
1/9/2009 531223 ANJANI SYNTH AYODHYAPATI INVESTMENT PVT LTD B 135003 39.43
1/9/2009 531223 ANJANI SYNTH NAMRATA SANJEEV AGARWAL S 58510 39.45
1/9/2009 532981 ANU LABS VIJAYY NANVARE B 1219220 12.30
1/9/2009 532981 ANU LABS ALPESH JAYANTILAL PANDIT B 2004883 12.34
1/9/2009 532981 ANU LABS VIJAYY NANVARE S 1219220 12.14
1/9/2009 532981 ANU LABS ALPESH JAYANTILAL PANDIT S 2004883 12.23
1/9/2009 517001 BIRLA POWER JMP SECURITIES PVT LTD B 3829660 4.58
1/9/2009 517001 BIRLA POWER JMP SECURITIES PVT LTD S 5039139 4.58
1/9/2009 531932 C G IMPEX DAXABEN VASANTKUMAR SHAH B 55000 7.83
1/9/2009 531932 C G IMPEX NILESH DOSHI S 111725 7.84
1/9/2009 531337 CHAN GUIDE I B H LAKHANI B 39475 67.56
1/9/2009 531923 DHAMPURE SGR MADHU KOCHER S 46000 25.05
1/9/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 21080 9.37
1/9/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD B 20100 9.37
1/9/2009 517973 DMC INTER ABHINAY KAPOOR S 30000 9.37
1/9/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD S 20100 9.37
1/9/2009 531367 DOLLEX INDUT KEVAL SHARE BROKING P.LTD B 42645 10.23
1/9/2009 531367 DOLLEX INDUT KEVAL SHARE BROKING P.LTD S 45195 10.52
1/9/2009 531144 EL FORGE LTD SETU SECURITIES PVT LTD B 50003 20.00
1/9/2009 531144 EL FORGE LTD DHEERAJ KUMAR B 80000 20.01
1/9/2009 531144 EL FORGE LTD GRISHMA V JHAVERI B 50000 20.00
1/9/2009 531144 EL FORGE LTD SETU SECURITIES PVT LTD S 50003 20.67
1/9/2009 531144 EL FORGE LTD INDIA INVESTMENT PARTNERS LIMITED A/C ICG Q LIMITED S 713487 20.00
1/9/2009 532022 FILAT FASH KANAK STOCK BROKERS PVT LTD B 45000 81.50
1/9/2009 532022 FILAT FASH SAMIR KUMAR DIPAKBHAI SHAH B 35000 81.50
1/9/2009 530945 GANGOTRI I&S RAJA MOHAMAD BIN MAIDEN B 69700 27.25
1/9/2009 530945 GANGOTRI I&S RISHAB P SIROYA S 46500 26.54
1/9/2009 530945 GANGOTRI I&S GBK RESOURCES PVT LTD S 50000 26.64
1/9/2009 532767 GAYATRI PROJ HITESH SHASHIKANT JHAVERI B 63054 308.84
1/9/2009 532767 GAYATRI PROJ HITESH SHASHIKANT JHAVERI S 63796 307.66
1/9/2009 532951 GSS AMERICA INDIA DISCOVERY FUND LIMITED B 71000 249.00
1/9/2009 532951 GSS AMERICA CHANDRA PRAKASH KHANDELWAL HUF S 64990 249.00
1/9/2009 513337 GUJ.TOOLROOM LATIN MANHARLAL SEC.PVT.LTD. B 50000 14.68
1/9/2009 513337 GUJ.TOOLROOM MONIQUE GEMS PVT.LTD. B 50000 14.71
1/9/2009 513337 GUJ.TOOLROOM IMTIYAZ IBRAHIMBHAI DESAI S 139500 14.62
1/9/2009 532216 HB STOCKHOLI B.K.KHULLAR & CO. B 243000 26.60
1/9/2009 532216 HB STOCKHOLI ASHARI AGENCIES LTD S 246345 26.62
1/9/2009 511682 IFL PRMOTER SHANKAR KARIYA SHETTY B 25000 8.03
1/9/2009 511682 IFL PRMOTER ABHINAY KAPOOR S 20000 8.04
1/9/2009 511682 IFL PRMOTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD S 26896 8.04
1/9/2009 506522 J L MORISO I JAIDEEP HALWASIYA B 13436 296.11
1/9/2009 504920 JHAGAD COP JMP SECURITIES PVT LTD B 1233634 5.82
1/9/2009 504920 JHAGAD COP JMP SECURITIES PVT LTD S 1470513 5.84
1/9/2009 531413 KIRAN PRIN P RAJENDRA KUMAR CHOUDHRY HUF B 34701 7.11
1/9/2009 531731 KUVAM INTL KRITIKA JAGMOHAN SINGH B 20000 25.07
1/9/2009 531731 KUVAM INTL HETAL BARU S 15500 24.65
1/9/2009 500256 LOK HOUSI CO JMP SECURITIES PVT LTD S 263052 39.99
1/9/2009 531131 MASCON GLOBA JMP SECURITIES PVT LTD S 1782738 5.78
1/9/2009 524820 PANAM PETROC DIPAK K SHAH S 33000 128.02
1/9/2009 511652 RAM KAASHYAP KOKILABEN N JADAV B 163700 17.61
1/9/2009 511652 RAM KAASHYAP SETU SECURITIES PVT LTD S 100600 16.79
1/9/2009 511652 RAM KAASHYAP HITESH SHASHIKANT JHAVERI S 37700 17.20
1/9/2009 511652 RAM KAASHYAP VP PATEL S 30000 16.60
1/9/2009 511652 RAM KAASHYAP SUBHKARAN TILOKCHAND AGARWAL S 62900 18.30
1/9/2009 503162 REL CHEMO IN RAKESHBHAI AMULAKHBHAI MEHTA B 36000 37.04
1/9/2009 531952 RIBA TEXTILE NITABAEN SHAILESHBHAI PATEL S 48868 37.10
1/9/2009 531539 RISH DIGH ST BHAVIN H BATAVIA B 31493 17.02
1/9/2009 531374 SAAG RR INFR ANGEL INFIN PRIVATE LIMITED B 273948 27.99
1/9/2009 531374 SAAG RR INFR KALPANA MADHANI SECURITIES PVT. LTD. B 55000 28.00
1/9/2009 531374 SAAG RR INFR D VENKATESAN S 150000 28.00
1/9/2009 531374 SAAG RR INFR N JAYAKUMAR NATARAJAN S 100000 28.00
1/9/2009 531374 SAAG RR INFR KALPANA MADHANI SECURITIES PVT. LTD. S 55000 28.00
1/9/2009 531312 SANRAA JMP SECURITIES PVT LTD B 3492656 0.89
1/9/2009 531312 SANRAA JMP SECURITIES PVT LTD S 4685997 0.89
1/9/2009 524540 SECUN HEALTH DISHA DHARMENDRA MADHANI B 30199 25.25
1/9/2009 524540 SECUN HEALTH SAURABH KUMARRASIKLAL GANDHI S 34000 25.20
1/9/2009 524540 SECUN HEALTH MALATHI NIMMAGADDA S 30000 25.25
1/9/2009 524540 SECUN HEALTH SURESH BABU POTLURI S 20000 25.28
1/9/2009 512413 SPECTACLE BHARAT SHANTILAL THAKKAR B 263437 44.68
1/9/2009 512413 SPECTACLE HEMANT MADHUSUDAN SHETH B 275000 44.42
1/9/2009 512413 SPECTACLE BHARAT SHANTILAL THAKKAR S 263437 44.75
1/9/2009 512413 SPECTACLE HEMANT M SHETH S 317646 43.27
1/9/2009 512048 SPLASH MEDIA MOHAMMED ALI EBRAHIM GHEEWALA B 8500 185.00
1/9/2009 512048 SPLASH MEDIA SUVIDHA SECURITIES PVT LTD S 11423 185.00
1/9/2009 512048 SPLASH MEDIA MANJU KHANDELIA S 8600 185.00
1/9/2009 512640 STOCKNET INT POONAM BAGJARIA S 55488 2.08
1/9/2009 530611 STURDY INDS WORTHWHILE SHAH S 50000 24.80
1/9/2009 530611 STURDY INDS SAURABH PVT LTD. S 50000 24.80
1/9/2009 590093 TRIMURTHI DR SHOBHA IMTIYAZ DESAI B 55000 34.50
1/9/2009 590093 TRIMURTHI DR IMTIYAZ IBRAHIMBHAI DESAI B 45000 34.45
1/9/2009 590093 TRIMURTHI DR UMA C RANI S 75000 34.48
1/9/2009 531249 WELL PACK PA PANDYA HARDIK M B 30502 185.44
1/9/2009 531249 WELL PACK PA PANDYA HARDIK M S 26459 185.87
1/9/2009 531249 WELL PACK PA BHAVESH PRAKASH PABARI S 22465 185.66
1/9/2009 522108 YUKEN INDIA NARESH CHAND JAIN B 15439 95.91
1/9/2009 522108 YUKEN INDIA HEMANT S SHETH S 16388 95.65
NSE Bulk Deals to Watch - Sep 1 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
01-SEP-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,376338,1605.06,-
01-SEP-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,4087088,4.58,-
01-SEP-2009,BIRLAPOWER,Birla Power Solutions Ltd,JMP SECURITIES PVT LTD,BUY,2175362,4.64,-
01-SEP-2009,GLORY,Glory Polyfilms Limited,CHIRAG SHASHIKANT TANNA,BUY,87497,25.85,-
01-SEP-2009,ICSA,ICSA (India) Limited,NIRSHILP SECURITIES PVT. LTD.,BUY,175389,213.10,-
01-SEP-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,10953819,23.15,-
01-SEP-2009,JAYSREETEA,Jayashree Tea Ltd.,MBL & COMPANY LTD.,BUY,60509,274.49,-
01-SEP-2009,NILKAMAL,Nilkamal Limited,JYOTI VARDHAN SONTHALIA,BUY,85000,142.56,-
01-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,GLOBE CAPITAL MARKET LIMITED,BUY,115486,118.70,-
01-SEP-2009,RPGLIFE,RPG Life Sciences Limited,QUEST INV. ADVISORS PVT. LTD.,BUY,74999,42.58,-
01-SEP-2009,SASKEN,Sasken Commu Techno Ltd,MANISH VRAJLAL SARVAIYA,BUY,180012,167.24,-
01-SEP-2009,SUZLON,Suzlon Energy Limited,GENUINE STOCK BROKERS PVT LTD,BUY,8295961,96.88,-
01-SEP-2009,VAKRANSOFT,Vakrangee Softwares Limit,SETU SECURITIES LTD,BUY,121214,74.79,-
01-SEP-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,376338,1605.97,-
01-SEP-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,4828627,4.61,-
01-SEP-2009,BIRLAPOWER,Birla Power Solutions Ltd,JMP SECURITIES PVT LTD,SELL,2676007,4.67,-
01-SEP-2009,GLORY,Glory Polyfilms Limited,CHIRAG SHASHIKANT TANNA,SELL,87497,25.65,-
01-SEP-2009,ICSA,ICSA (India) Limited,NIRSHILP SECURITIES PVT. LTD.,SELL,286989,212.73,-
01-SEP-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,11096329,23.26,-
01-SEP-2009,JAYSREETEA,Jayashree Tea Ltd.,MBL & COMPANY LTD.,SELL,60509,274.98,-
01-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,GLOBE CAPITAL MARKET LIMITED,SELL,372239,116.79,-
01-SEP-2009,SASKEN,Sasken Commu Techno Ltd,MANISH VRAJLAL SARVAIYA,SELL,173258,166.34,-
01-SEP-2009,SUZLON,Suzlon Energy Limited,GENUINE STOCK BROKERS PVT LTD,SELL,8295961,96.94,-
01-SEP-2009,VAKRANSOFT,Vakrangee Softwares Limit,SETU SECURITIES LTD,SELL,115204,74.58,-
Bears turn the game in 2nd half
The market lost its initial grip and succumbed to heavy losses on late selling in realty, metal, power and several major counters. Riding on the back of three
straight sessions of gains last week, the Sensex opened firm at 15691 and rallied sharply by mid-morning to touch an intra-day high of 15923. While the market maintained its upward bias for the better part of the day, the shift from the bullish mood came towards the close and the index plunged deep into the red to touch the day's low of 15475. The Sensex finally ended the session with losses of 115 points at 15551 while the Nifty declined by 37 points to close at 4625.
The market breath that was strongly positive in morning turned negative at the close. At closing bell 58% shares were down, while 40% were up. Remaining 2% scrips were unchanged. Of the 13 sectoral indices only BSE Auto was perceptibly up, BSE IT and BSE TECk were marginally up, while the rest 10 indices were down for the day. BSE Realty was down the most—3.07% while BSE Auto was tangibly up—2.45% higher.
Several heavyweights that were up in the first half took a sharp tumble on late selling pressure. Of the 30 shares that make the Sensex, 23 were down while 7 were up. ACC slipped 3.62% to Rs779.45, Sterlite Industries tumbled 2.88% to Rs655.85, HDFC dropped 2.49% to Rs2,412.95, Bharat Heavy Electricals fell 2.31% to Rs2,261.20, JP Associates slumped 2.25% to Rs222.05, ONGC lost 1.98% to Rs1,161.75, Hindalco Industries slipped 1.94% to Rs103.80, Reliance Infrastructure dipped 1.93% to Rs1,123.90 and DLF shed 1.77% to trade at Rs416.70. Tata Steel, HDFC Bank, Mahindra & Mahindra and National Thermal Power Corporation were down over 1% each. However of the seven Sensex stocks that rose for the day Maruti Suzuki India and Tata Motors advanced 5-7% each to quote at Rs1,545.95 and Rs517.85 respectively while Hero Honda Motors, Wipro and Reliance Communications added 1% each to their stock value.
NHPC made its debut on the BSE at its offer price at Rs36 and touched the day's high of Rs39.75. The stock finally closed at Rs36.70, a little above its listing price on volume of over 19 crore shares on the BSE followed by Suzlon Energy (2.91 crore shares), Mahindra Satyam (2.55 crore shares), Unitech (2.39 crore shares) and Ispat Industries (1.67 crore shares).
SAIL registered a turnover of Rs207 crore on the BSE followed by Reliance Industries (Rs130 crore), Wipro (Rs114 crore), Tata Steel (Rs96 crore) and Mahindra & Mahindra (Rs88 crore).
Auto shares surge in choppy market surge
A tepid debut of state-run power firm NHPC pulled the market lower in what was a choppy trading session. Weak European stocks and lower US index dampened investor sentiment. The BSE 30-share Sensex fell 115.45 points or 0.74%, off close to 370 points from the day's high and up close to 75 points from the day's low. Realty, metal and capital goods stocks declined. Index heavyweight Reliance Industries and ONGC edged lower. But, auto stocks rose. The market breadth, indicating the overall health of the market, turned negative from a strong breadth earlier in the day.
Shares of state-run hydropower generator NHPC settled at Rs 36.70, a premium of 1.94% on the BSE compared with the IPO price of Rs 36 per share.
Intraday volatility on the bourses was high today. The market surged in early trade tracking gains in Asian stocks triggered by strong Chinese manufacturing sector data. The market extended gains in mid-morning trade. The market pared gains in early afternoon trade as Chinese stocks came off the day's high. The market firmed up again with the Sensex hitting a fresh intraday high in early afternoon trade.
A total reversal of the trend was witnessed as the Sensex tumbled in mid-afternoon trade on lower European stocks. The market cut losses later.
As per provisional data, foreign funds today, 1 September 2009, dumped equities worth a net Rs 635.94 crore. In contrast, domestic funds bought equities worth a net Rs 366.89 crore.
India's economic growth in the coming two quarters will be lower than in April-June 2009 quarter, Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Tuesday. He expects strong recovery in growth in the March 2010 quarter. Ahluwalia said fiscal deficit is unlikely to exceed the targeted 6.8% of GDP in FY 2010. He said better management of food stocks could help stem prices.
Prime Minister Manmohan Singh today said the government is taking steps to ensure a normal winter crop and it is in a strong position to manage the consequences of drought. He said the rural jobs scheme and other schemes will help minimise the impact of drought. The Prime Minster said the country has very high food stocks. He said the country has been through a difficult year due to global downturn and poor monsoon.
Drought or drought-like conditions have been declared in 278 districts or 44% of the nation's total, as rainfall has been 25% below average so far in the four- month monsoon season that started on 1 June 2009, the farm ministry said on 27 August 2009
India's exports fell an annual 28.4% in July 2009 over July 2008 and imports fell 37.1%, data released by the government during trading hours today, 1 September 2009, showed today.
A latest survey showed India's manufacturing activity expanded at its slowest pace in five months in August 2009. The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 companies, fell to a five-month low of 53.2 in August 2009 from a revised reading of 55.4 in July 2009. The new orders index fell to 56.2 in August 2009, also its lowest in four months, from 60 in July 2009.
The PMI has been above 50, which separates expansion from contraction, for five months. Before that, it shrank for the five months through March 2009, hitting a trough of 44.4 in December 2008.
The plan panel today forecast a 6.3% growth in the economy in the year ending March 2010 (FY 2010) and at a faster pace in the following years. The panel expects 8% economic growth in fiscal year 2010/11 and 9% in 2011/12, it added.
The planning commission warned that wholesale price inflation could end the fiscal year above the Reserve Bank of India's forecast of 5%, as a poor monsoon drives up food prices. The warning followed the one by RBI last week when the central bank said the deficient monsoons may affect the inflation outlook more than growth prospects. In its quarterly review of the monetary policy in late July 2009, RBI had said it expects inflation to scale up to around 5% by March 2010.
India's gross domestic production (GDP) grew 6.1% in Q1 June 2009 compared with the year-earlier, figures released by the Central Statistical Organisation announced on Monday, 31 August 2009, showed. The segment grouping financing, insurance, real estate and business services led growth in GDP, gaining 8.1% on year. The category including trade, hotels, transport and communication was also up 8.1%.
The GDP growth was lower than 7.8% achieved in Q1 June 2008 but it accelerated from the 5.8% expansion in Q4 March 2009.
European shares fell on Tuesday in a choppy session, with losses in banking stocks offsetting gains in defensive drugmakers. Key benchmark indices in France, UK and Germany were down by between 0.83% to 1.4%.
Euro zone unemployment rose as expected in July 2009 to its highest since May 1999, data showed on Tuesday. The European Union's statistics office said the unemployment rate in the 16-country euro currency area climbed to 9.5% from June's 9.4%, in line with market consensus.
Asian stocks rose today as China's manufacturing expanded at the fastest pace in 16 months in August 2009, two surveys showed.
China's Shanghai Composite Index pared intraday gains to end 0.6% higher. The index had tumbled nearly 7% on Monday. The official Purchasing Managers' Index (PMI) rose to a seasonally adjusted 54 from 53.3 in July 2009, the Federation of Logistics and Purchasing said. The HSBC PMI, previously released by CLSA Asia-Pacific Markets, showed an overall increase to 55.1 from 52.8 in July.
Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were up by between 0.13% to 2.84%.
US futures revered early gains. Trading in US index futures indicated Dow could fall 52 points at the opening bell on Tuesday, 1 September 2009.
US markets ended lower on Monday, 31 August 2009 as a sharp drop in Chinese equities added to concerns about the global economy's recovery. The Dow fell 47.92 points, or 0.5%, to 9,496.28. The S&P 500 index declined 8.31 points, or 0.8%, to 1,020.62 and the Nasdaq dropped 19.71 points, or 1%, to 2,009.06.
In economic news, the Chicago institute for supply management reported its gauge of business activity in the Midwest region rose to 50 in August 2009 from 43.3 in July 2009, the highest reading since September 2008.
The BSE 30-share Sensex fell 115.45 points or 0.74% to 15,551.19. The Sensex rose 256.45 points at the day's high of 15923.09 in afternoon trade. The Sensex fell 191.36 points at the day's low of 15,475.28 in mid-afternoon trade.
The S&P CNX Nifty declined 36.75 points or 0.79% to 4,625.35. Nifty September 2009 futures were at 4615.50, at a discount of 9.85 points as compared to the spot closing of 4625.35. Turnover in NSE's futures & options (F&O) segment surged to Rs 74,486.28 crore from Rs 59,415.63 crore on Monday, 31 August 2009.
BSE clocked a turnover of Rs 6789 crore, higher than Rs 6650.52 crore on Monday, 31 August 2009.
The market breadth, indicating the overall health of the market, turned negative from a strong breadth earlier in the day. On BSE, 1656 shares declined as compared with 1144 that rose. A total of 62 shares remained unchanged.
Among the 30-member Sensex pack, 23 fell while rest rose.
The BSE Sensex has lost 371.15 points or 2.33% in last two days after gaining for seven straight days. The BSE Sensex had jumped 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 5903.88 points or 61.19% in calendar year 2009 as on 1 September 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7390.79 points or 90.56% as on 1 September 2009. FII inflow in calendar year 2009 totaled Rs 40,198.50 crore (till 31 August 2009).
Coming back to today's trade, the BSE Mid-Cap index fell 1.45% and the BSE Small-Cap index fell 1.51%. Both the indices underperformed Sensex.
The BSE Auto index (up 2.45%), the BSE IT index (up 0.42%), the BSE Teck index (up 0.06%), the BSE FMCG index (down 0.22%), outperformed the Sensex.
The BSE Realty index (down 3.07%), the BSE Metal index (down 1.94%), the BSE Power index (down 1.66%), the BSE Capital Goods index (down 1.64%), the BSE Healthcare index (down 1.38%), the BSE PSU index (down 1.38%), the BSE Oil & Gas index (down 1.09%), the BSE Consumer Durables index (down 0.99%), the BSE Bankex (down 0.79%), underperformed the Sensex.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.1% to Rs 1982. The stock hit a high of Rs 2042 and a low of Rs 1967. The Supreme Court, from 20 October 2009 will hear the Krishna-Godavari gas dispute between Mukesh Ambani's Reliance Industries (RIL) and Anil Ambani's Reliance Natural Resources (RNRL) for its final disposal. A bench headed by Chief Justice KG Balakrishnan on Friday fixed the date for an early decision in the case.
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.
Meanwhile, the Union petroleum ministry has reportedly sought a revival of the Empowered Group of Ministers (EGoM) to allocate natural gas produced at Reliance Industries' (RIL) KG-D6 fields beyond its current capacity of 40 million metric standard cubic metres a day (mmscmd). RIL is set to ramp up production from the field to 80 mmscmd from 40 mmscmd.
India's largest oil exploration firm by market capitalisation ONGC fell 1.98%. The company on Friday, 28 August 2009, said it has discovered gas at a block in the north-eastern state of Tripura. The gas contains up to 96.3% methane. The announcement was made after trading hours on Friday.
Cairn India fell 2.64% on profit taking after recent gains after the company on Saturday, 29 August 2009 began pumping crude from its Mangala oil field in the Rajasthan block.
PSU OMCs rose on fall in crude oil prices. BPCL, HPCL and Indian Oil Corporation rose by between 0.84% to 2.05%. Lower oil prices will reduce underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.
On the New York Mercantile Exchange, October 2009 crude settled down $2.78, or 3.82%, at $69.96 a barrel on Monday, 31 August 2009 as a sharp fall in Chinese equities spurred worries about demand and economic recovery in commodities and global stock markets.
Metal stocks fell as London copper futures fell 2% on Tuesday as trading resume after a long weekend. Steel Authority of India, Jindal Steel & Power, National Aluminum Company, Hindalco Industries fell by between 0.22% to 2.88%.
India's largest steel maker by sales Tata Steel fell 1.61%. 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.
India's largest copper maker by sales Sterlite Industries fell 2.88% even as a US federal judge recommended that Mexican miner Grupo Mexico be allowed to take control of US copper miner Asarco LLC, for which Sterlite had made a bid.
India's largest mobile services provider by sales Bharti Airtel fell 0.72% after South Africa's communications department said on Tuesday it supported in principle a proposed tie-up between MTN Group and Bharti Airtel, aimed at creating the world's No. 3 mobile operator.
The two companies, which have been working on a complex $23 billion cash and share swap since 25 May 2009, have extended merger talks to 30 September 2009, after previously extending discussions by a month to 31 August 2009.
India's second largest mobile services provider by sales Reliance Communication rose 1.34% on reports the firm is close to signing a tower sharing agreement with local peer Aircel, that could fetch the company revenues of about Rs 1500 crore over 10 years.
Shares of state-run hydropower generator NHPC settled at Rs 36.70 on BSE, a premium of 1.94% over the IPO price of Rs 36. The stock debuted at Rs 39, a premium of 8.33% compared with the IPO price. A huge volume of 19.35 crore shares was recorded in the stock on BSE.
NHPC chairman and managing director S.K. Garg today said the company has planned capital expenditure of Rs 4600 crore in the fiscal year to March 2010. The company has already spent about Rs 2000 crore of the planned capital expenditure so far this year on new hydropower projects
Among other power stocks, Power Grid Corporation of India, CESC, Reliance Infrastructure, Torrent Power, Reliance Power, fell by between 0.42% to 1.93%.
Tata Power Company fell 0.55% extending recent decline 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 on Friday, 28 August 2009.
India's largest power generation firm by sales NTPC fell 1.16% on profit taking after recent gains on reports the government is looking at divesting 10% stake in the largest power generation company. NTPC may also raise fresh equity to part finance its expansion programme. According to reports, NTPC is likely to hit the capital market with a follow-on public offer to raise nearly Rs 6,000 crore early next fiscal.
Auto stocks rose after India's top car maker Maruti Suzuki reported robust sales for the month of August 2009. Maruti Suzuki, India's top car maker by sales, rose 7.61% after its total vehicle sales rose 41.6% to 84,808 units in August 2009 over August 2008. The company expects its sales to rise more than 10% till October 2009, its chairman said on Friday, 28 August 2009 after growing sales at over 14% during four months to July 2009.
India's largest motorbike maker by sales Hero Honda Motors rose 1.55% as sales rose 36% in August 2009 over August 2008. TVS Motor company rose 5.17% after the two wheeler maker reported a 10.95% jump in sales to 126,842 units in August 2009 over August 2008.
India's largest truck marker by sales Tata Motors jumped 5.82% after its consolidated results showed a sequential improvement in performance of its unit Jaguar Land Rover (JLR) in Q1 June 2009 over Q4 March 2009. The results were announced in late trade on Monday, 31 August 2009.
But, Indian largest tractor maker by sales Mahindra & Mahindra slipped 1.48% on profit taking after recent sharp gains. Mahindra & Mahindra's (M&M) total vehicle sales rose 15% to 22,063 units in August 2009 over August 2008.
Realty stocks fell on profit taking after recent gains triggered by reports that the 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. Indiabulls Real Estate, DLF, Unitech, Anant Raj Industries , Omaxe fell by between 1.77% to 5.36%.
Realty market had slumped last year amid a global credit crunch and buyers fearing job losses.
Capital goods fell on profit taking after recent gains. Higher government spending on infrastructure sector in 2009-2010 to provide a stimulus to the economy, may result in increase order flow for construction and capital goods firms.
Thermax, ABB, Siemens, Praj Industries, BEML, Punj Lloyd fell by between 2.13% to 4.02 %.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell 1.12%. The company's chairman A M Naik said on Friday, 28 August 2009, the company expects to make a profit of up to Rs 250 crore on its shares in outsourcer Mahindra Satyam. He added that L&T is expected to sell Mahindra Satyam shares by March next year.
L&T had built a 12% stake in Mahindra Satyam, formerly Satyam Computer, before losing out in the race for a controlling stake in the firm earlier this year to Tech Mahindra.
India's largest electric equipment maker by sales Bharat Heavy Electricals fell 2.31% on turning ex-dividend for a final dividend of Rs 8 per share.
FMCG stocks reversed early gains on concerns over scanty rains. FMCG firms derive a substantial revenue from rural India. ITC, Nestle India, United Spitrits fell by between 0.07% to 2.03%.
Cement stocks fell ahead of the release of monthly dispatchment figures for the month of August 2009 by cement makers. ACC, UltraTech Cement, Ambuja Cements, Grasim Industries, Birla Corporation fell by between 0.6% to 3.62%.
Bank stocks fell on profit taking. India's largest private sector bank by net profit ICICI Bank fell 0.64% as its American depository receipt (ADR) fell 1.61% on Monday. 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 1.59% as its ADR fell 0.74% on Monday.
India's biggest bank in terms of branch network State Bank of India (SBI) fell 0.55%. Bank's Chairman O P Bhatt said on Friday interest rates will remain stable for next six months. It is difficult to say whether rates have bottomed out, he said.
But some other PSU banks rose. India Overseas Bank, Bank of Baroda, Bank of India, Union Bank of India, rose by between 0.06% to 1.08%.
The Reserve Bank of India on Monday said commercial banks, excluding local area banks and regional rural banks, are allowed access to the interest rate futures market for hedging and trading on their own books. Trading on interest rate futures began on the National Stock Exchange on Monday.
IT stocks rose on improved economic data in the US. US is the biggest market for IT firms. India's second largest software services exporter Infosys Technologies rose 0.49% even as its ADR fell 2.26% on Monday. A foreign brokerage, last week, reduced its rating on the stock 'underweight' from 'equal-weight', saying the stock's valuation is 'rich'.
India's third largest software services exporter Wipro rose 1.5% even as its ADR fell 1.13% on Monday, 31 August 2009. India's largest software services exporter TCS was flat at Rs 526.60.
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 last week.
Shares of some tea makers rose on firm tea prices. Tea prices have risen in tea auction due to fall in production in Kenya and India. Harrison Malayalam, Warren Tea, Mcleod Russell rose by between 1.9% to 4.31%.
Sugar stocks rose as fall in production has pushed global prices to multi-year highs. Shree Renuka Sugars, Bajaj Hindustan, Dhampur Sugars and Balrampur Chini rose by between 1.57% to 4.23%.
NHPC clocked the highest volume of 19.36 crore on BSE. Suzlon Energy (2.91 crore shares), Mahindra Satyam (2.55 crore shares), Unitech (2.39 crore shares) and Ispat Industries (1.67 crore shares) were the other volume toppers in that order.
NHPC clocked the highest turnover of Rs 710.48 crore on BSE. Mahindra Satyam (Rs 314.30 crore), Suzlon Energy (Rs 277.04 crore), Unitech (Rs 248.77 crore) and Reliance Capital (Rs 214.82 crore) were the other turnover toppers in that order.
Daily Call - NHPC - Sep 1 2009
NHPC is on top of every investor’s mind today. We believe investors will do well to hold on to the share for the long term. After initial jig on listing day, if we have our say, it should stabilize beyond 42, and if you must sell, do it when it nears 44.
September is by far the worst month for the US markets. It has posted an average decline of 1.3 percent since 1929 in this surly month. For our markets the dubious distinction goes to October, a month where many markets have seen an average 2% decline and some of its worst crashes.
China is tossing and turning many asset classes like never before. China is down 25% from its recent high and experiencing a major market meltdown. It is remarkable to see our markets where they are, as the same set of cues could put sensex 10% lower from here and no one would ask, why? Metals and IT stocks have seen short build up, while NBFCs are finding favor. Mid-caps are partying, and that is where we are also focused. Music will stop if Nifty were to close below 4630.
Pre Session Commentary - Sep 1 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened in green as a bounce back over yesterday’s losses. Majority of frontline stocks are already at their peak level and therefore any further northward movement is apprehensive. The day’s trade is likely to be range bound.
On Monday, the Indian market extended its losses towards the closing to end the session on negative note on sustained selling pressure during the trading. Unfavorable cues from the Asian markets along with negative European stocks took huge beating on the bourses. Chinese stocks plunged 6.74% on continued worries about the impact of fragile bank lending on the economy. Lower US Index futures also fueled the negative sentiments that off set the positive news from domestic arena that India’s economic growth accelerated for the first time since 2007. India’s gross domestic product expanded 6.1% in the first quarter ended June 30 2009 from 7.8% of the corresponding period of previous year. The BSE Sensex ended below 15,700 level and NSE Nifty closed below 4,700 mark.
The BSE Sensex closed lower by 255.70 or (1.61%) points at 15,666.64 and NSE Nifty ended down by 70.25 points or (1.48%) at 4,662.10. BSE Mid Caps and Small Caps closed with gains of 19.27 and 35.27 points at 5,882.97 and 6,997.03 respectively. The BSE Sensex touched intraday high of 15,821.35 and intraday low of 15,589.80.
On Monday, US stock markets closed lower. There was broad based selling across broader level as majority of Asian and European markets exuded huge selling pressure due to concerns over tighter lending in China that will most likely impede the flow of investment. The Shanghai Composite dropped 6.7% on Monday to hit a three-month closing low and log its second worst monthly performance in 15 years. However towards the end majority of stocks managed to pare off its early losses and closed marginally lower. Tuesday’s opening bell will be very crucial for the US markets as ISM manufacturing data for August, construction spending data for July, pending home sales data for July and also vehicle sales data are likely to provide some guidance to traders. US light crude oil futures for October delivery closed at $69.92 per barrel down by 3.9% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed lower by 47.92 points at 9,496.28, NASDAQ index closed lower by 19.71 points at 2,009.06 and the S&P 500 (SPX) also closed lower by 8.31 points at 1,020.62.
Indian ADRs ended in red barring Satyam Computers, which was up 21.53%. In the IT space, Infosys was down 2.26%, Wipro was down 1.13% and Patni Computers was down 0.81%. In the telecom space, Tata Communication was down 3.09% and MTNL was down 1.54%. In the banking space, ICICI Bank was down 1.61% and HDFC Bank was down 0.74%. In other sectors, Tata Motors was down 3.82%, Sterlite Industries was down 3.74% and Dr Reddy''s Labs was down 2.24%.
The FIIs on Monday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 2,574.30 Crore and gross debt purchased stood at Rs 387.80 Crore, while the gross equity sold stood at Rs 1,481.50 Crore and gross debt sold stood at Rs 307.80 Crore. Therefore, the net investment of equity and debt reported were Rs 1,092.70 Crore and Rs 80.00 Crore respectively.
On Monday, Indian Rupee closed at 48.83/84 per dollar, 0.4% weaker than its previous close at 48.65/66. The local lost strength due to correction in local stock market.
On BSE, total number of shares traded were 57.19 Crore and total turnover stood at Rs 6,650.52 Crore. On NSE, total number of shares traded were 113.56 Crore and total turnover was Rs 19,064.76 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 189851099 shares, followed by Suzlon Energy with 37167556, DLF with 14590713, Tata Steel with 13974491 and Cairn India with 7640662 shares.
On NSE Future and Options, total number of contracts traded in index futures was 741814 with a total turnover of Rs 16,282.66 Crore. Along with this total number of contracts traded in stock futures were 567261 with a total turnover of Rs 18,762.88 crore. Total numbers of contracts for index options were 950802 with a total turnover of Rs 22,498.64 Crore and total numbers of contracts for stock options were 52135 and notional turnover was Rs 1,871.46 Crore.
Today, Nifty would have a support at 4,622 and resistance at 4,732 and BSE Sensex has support at 15,512 and resistance at 15,756
Grey Market - Kostak - NHPC, Oil India, Jindal Cotex, Globus Spirits
| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) |
| NHPC | 36 | 4 to 6 | -- |
| Jindal Cotex | 70 to 75 | 5 to 5.50 | 1700 to 1800 |
| Globus Spirits Ltd. | 90 to 100 | 9 to 11 | 1800 to 1900 (+ 250 Form Commission) |
| Oil | 950 to 1050 | 120 to 125 | 2300 to 2400 (+ 250 Form Commission) |
Market may edge higher on positive Asia; NHPC lists today
The key benchmark indices may open higher tracking positive Asia as China's manufacturing showed improvement. Meanwhile, shares of state-run hydropower generator NHPC will debut on the bourses today, 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.
Auto stocks will be in action as Auto companies are set to announce sales figures for the month of August 2009 today.
Investors will also keenly watch the Export Import data for the month of July 2009 due to be announced by the government today.
The key benchmark indices took a breather on Monday, 31 August 2009 after strong gains in the past seven trading sessions as a setback in Chinese stocks offset optimism arising from India's strong Q1 GDP growth data. The BSE 30-share Sensex fell 255.70 points or 1.61% to 15,666.64 on Monday. The market had urged in the past seven days supported by positive global cues. The BSE Sensex jumped 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.
India's gross domestic production (GDP) grew 6.1% in Q1 June 2009 compared with the year-earlier, figures released by the Central Statistical Organisation announced on Monday, 31 August 2009. The segment grouping financing, insurance, real estate and business services led growth in GDP, gaining 8.1% on year. The category including trade, hotels, transport and communication was also up 8.1%. Agriculture, forestry and fishing, by comparison, rose just 2.4% on year. Manufacturing was up 3.4% on year in the April-June 2009 quarter.
The GDP growth was lower than 7.8% achieved in Q1 June 2008 but it accelerated from the 5.8% expansion in Q4 March 2009. Planning Comission deputy chairman Montek Singh Ahluwalia the worst may be over for the economy. He said the economy is expected to improve in the coming quarters. Finance Secretary Ashok Chawla said the economy is slowly bouncing back.
Asian stocks rose today as China's manufacturing expanded at the fastest pace in 16 months.
China's Shanghai Composite Index, which yesterday fell by the most since June 2008, added 0.12 %. The official Purchasing Managers' Index rose to a seasonally adjusted 54 from 53.3 in July 2009, the Federation of Logistics and Purchasing said.
Other Asian stocks, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.41% to 1.6%.
The US markets ended lower on Monday, 31 August 2009 as market cut losses after broad-based selling following a steep sell-off in China's Shanghai Composite Index.
The Dow fell 47.92 points, or 0.5%, to 9,496.28. The S&P 500 index declined 8.31 points, or 0.8%, to 1,020.62, while the Nasdaq dropped 19.71 points, or 1%, to 2,009.06.
In economic news, the Chicago institute for supply management reported its gauge of business activity in the Midwest region rose to 50 from 43.3 in July, the highest reading since September 2008.
Crude plunges
Monday's losses erase almost all of crude's monthly gains for August
Crude prices ended substantially lower on Monday, 31 August, 2009. Drop in global indices yesterday once again dampened investor sentiments for overall global recovery and hence crude slipped.
On Monday, crude-oil futures for light sweet crude for October delivery closed at $69.96/barrel (lower by $2.78 or 3.8%). Last week, crude ended higher by 9.5%. It was the biggest weekly gain for crude in three months.
For the month of August, 2009, crude ended higher by a marginal 0.7%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 53% since then. Year to date, in 2009, crude prices are higher by 45%.
In the currency market on Monday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended lower by 0.2%.
Among economic reports expected on Monday, manufacturing activity improved for the third straight month in the Chicago region in August. The Chicago purchasing managers index rose to 50% in August from 43.4% in July, 2009.
Also at the Nymex on Monday, September reformulated gasoline lost 7.23 cents, or 3.5%, to $1.9895 a gallon and September heating oil tumbled 8.11 cents, or 4.4%, to $1.7792 a gallon. Both contracts expired on Monday.
October natural gas fell 5.6 cents, or 1.8%, to $2.977 per million British thermal units. Natural gas is set to end the month down more than 20%.
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 lower by Rs 121 (3.4%) at Rs 3,431/barrel. Natural gas for September delivery closed lower by Rs 1.1 (0.74%) at Rs 147.5/mmbtu.
Precious metals end mixed
Gold registers marginal while silver registers decent gains for August
Precious metal prices ended mixed on Monday, 31 August, 2009. Gold prices fell but silver rose. Prices ended mixed despite the somber dollar.
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 Monday, gold for December delivery ended at $953.5, lower by $5.3 (0.6%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by almost 0.4%. Year to date, gold prices are higher by 8.8%.
Gold ended August, 2009 higher by 0.2%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (7.1%) since then.
On Monday, Comex silver futures for September delivery rose by 12.3 cents (0.8%) to $14.907 an ounce. Last week, silver ended higher by 4.3%.
Silver ended 7.1% higher for August, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 32.6% this year. For 2008, silver had lost 24%.
In the currency market on Monday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended lower by 0.2%.
Among economic reports expected on Monday, manufacturing activity improved for the third straight month in the Chicago region in August. The Chicago purchasing managers index rose to 50% in August from 43.4% in July, 2009.
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 4 (0.02%) at Rs 15,125 per 10 grams. Prices rose to a high of Rs 15,156 per 10 grams and fell to a low of Rs 15,037 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed Rs 200 (0.83%) higher at Rs 24,245/Kg. Prices opened at Rs 23,996/kg and rose to a high of Rs 24,725/Kg during the day's trading.
Daily News Roundup - Sep 1 2009
Oil ministry seeks to form a new EGoM for allocation of next 40mmscmd of gas from Reliance Industries’ KG-D6 field. (ET)
Aircel and RCom are in the final stages of negotiations for US$300mn infra sharing deal. (BS)
RCom prepays term loan worth Rs50bn. (BS)
The Union Government to hand over the reins of management and promoter status of Maytas Infra to IL&FS. (BS)
NTPC plans to bid in the eighth round of NELP. (FE)
Tata Motors aims to reach full capacity utilization at its Pantnagar plant in Uttarakhand for Nano in near term. (FE)
Britannia Industries has is planning to hike biscuit prices in the near future. (FE)
Britannia Industries bought out Khimji Ramdas Group’s 30% stake in Dubai-based Strategic Food International Co LLC (SFIC), to make it a wholly-owned indirect subsidiary of the company. (BL)
Oil India plans to invest nearly Rs45bn in the next two years on exploration-related activities. (BL)
Oil India plans to add five more rigs to its kitty. (BS)
The first phase of the NTPC-BHEL power equipment project at Mannavaram in Chittoor district of Andhra Pradesh will be completed by 2011-12. (BL)
Tata Steel to spend Rs11bn to augment capacity of its iron ore mines at Joda (Orissa) and Noamundi (Jharkhand). (BL)
Oriental Green Power (OGP), promoted by Chennai-based Shriram EPC, would invest Rs7.3bn for setting up biomass-based power plants. (BS)
Crompton Greaves eyes another overseas acquisition in the next eight months. (BS)
Four Soft is exploring acquisition opportunities in Europe and the US. (BS)
US-based Intel Capital may emerge as one of the bidders for a stake in the factories owned by ITI Ltd, as part of its strategy to spread WiMax technology in India. (BL)
Kingfisher Airlines plans to raise Rs10bn via GDR, rights issue. (ET)
Jet Airways to raise US$400mn through various fund raising routes. (ET)
The Godrej Group is looking at selling its non-core businesses, including the food business. (BL)
Unity Infraprojects has bagged Rs3.2bn order from the Municipal Corporation of Mumbai. (BL)
Corporation Bank has raised Rs 100 crore through issue of tier-I bonds. (BL)
The proposed Godrej Properties IPO could be floated as early as November. (BL)
Supreme Infrastructure has secured Rs2.4bn contract for construction of a housing project at Gurgaon from Ramprastha Developers. (BL)
Corporation Bank has raised Rs1bn through issue of bonds. (FE)
India’s GDP growth stood at 6.1% in Q1 FY10, primarily due to expansion in manufacturing and services sectors. (BS)
Annual retail inflation as measured by CPI for industrial workers rose by 11.89% in July. (ET)
India’s fiscal deficit hits 40% of FY10 target in first four months. (ET)
Growth in bank credit to corporate sector dipped further to 14.89% for week ended August 14. (FE)
Government grants 6 more months to repay farm loan to farmers in view of drought in many parts of the country. (BS)
The petroleum ministry said it will ensure unfettered access to the accounts of private oil and gas contractors for the Comptroller and Auditor General (CAG). (BS)
The Insurance Regulatory and Development Authority (Irda) plans to cut Ulip approval time from 30 to just 3 days. (BS)
Tuesday Turnaround possible
The great thing in the world is not so much where we stand, as in what direction we are moving.
The world may be standing, sitting or sleeping but India sure is moving ahead. The Q1 GDP data revealed a resilient Indian economy. On a higher base and in the face of the global downturn, it was a commendable show. Given the trauma and turbulence the world economy has weathered, a GDP growth rate of 6% plus is acceptable. We expect a better opening on local bourses, as there is no China scare to haunt us today. Other Asian markets too are flashing the green light.
One also has to note that Monday’s sell-off was led more by the FIIs, and was restricted to the large caps. The broader market managed to hold its own. Today, the frontline counters may recover. As far as small- and mid-cap stocks are concerned, one should be careful in dealing with them. However, this space could still surprise on the positive side as these stocks had been under-performing the large caps lately.
In short, the outlook for today appears brighter, though overall things remain uncertain. Early gains may not sustain so one should be prepared for volatility at this juncture.
The shares of NHPC Ltd. will get listed today. A small premium is what the market observers are pricing in.
As on 27th August, rainfall as a whole was deficient by 24%, with 278 districts in 11 States being affected by drought. The Cabinet reviewed the prices of essential commodities. It noted that major areas of concern are prices of pulses and sugar.
The shortfall in kharif output will pose a few problems though, particularly on the inflation front. In fact, inflation, as measured by the various CPIs climbed in July over the previous month. The CPI for Industrial Workers for July is 11.89% compared to 9.29% in June. Inflation based on CPI for Agriculture Labourers rose from 11.52% in June to 12.9% in July, while the one based on CPI for Rural Labourers went up from 11.26% to 12.67% in July last year.
Global leaders are gathering in Los Cabos, Mexico today to discuss the next steps in a concerted campaign to counter tax evasion. The two-day meeting, organised by the OECD, will focus on improving transparency and exchange of banking and ownership information. Hopefully, even the Indian Government will be able to extract information on the billions of dollars of Black Money stashed away in Swiss accounts.
On Wall Street, US stocks closed lower after a big drop in Chinese shares heightened concerns that the world equity markets have risen too far, too fast. But August was a good month for Wall Street.
The Dow Jones Industrial Average shed 47 points, or 0.5%, on the last day of the month. The S&P 500 index lost 8 points, or 0.8%, while the Nasdaq Composite index slid 20 points, or 0.9%.
Despite Monday's weakness, the Dow and S&P turned in their best August performance since 2000. For the entire month, the Dow gained about 3.5% and the S&P added roughly 3.3%. The Nasdaq rose 1.5% in August.
Stocks opened sharply lower, following a 6.7% drop in the Shanghai Composite index. The selloff in China raised concerns about the global economy and prompted investors to shy away from risky assets.
Oil prices sank nearly 5%, falling below $70 a barrel. That dragged on shares of oil services firms. Industrial shares also fell sharply. Bank stocks, which have led the market higher in recent sessions, came under pressure.
The retreat came despite a pair of big corporate mergers and a stronger-than-expected regional manufacturing report. Wall Street analysts are of the view that the market is jittery heading into what is expected to be a volatile month.
September is historically the worst month for US stocks and market participants are bracing for a possible pullback following a surprisingly strong summer advance.
Between the March 9 lows and Friday's close, the S&P 500 gained 52%, as investors responded to stronger corporate results and improved economic data. For the year, stocks, as measured by the S&P 500 index, are up nearly 13%.
More concrete signs of economic growth are now necessary to keep the rally going. The fundamentals in the first week could set the tone for the entire month.
The ISM index of manufacturing activity and auto sales for August come out on Tuesday. On Friday, the Labor Department's monthly employment report is expected to show a slight increase in the nation's unemployment rate.
Walt Disney said it would acquire comic book publisher Marvel Entertainment for approximately $4 billion. Shares of Marvel surged 25%.
Oilfield services company Baker Hughes said that it would purchase rival BJ Services in a cash-and-stock deal worth approximately $5.5 billion.
A report showed manufacturing activity in the Midwest was stronger than expected during August. The Institute for Supply Management's Chicago PMI rose to 50 in August from 43.4 in July. Economists had forecast a reading of 47.2.
The report comes one day before the ISM releases its national manufacturing report, which is forecast to rise to a level signaling expansion for the first time since January 2008.
In currency trading, the dollar fell against the euro and retreated versus the yen.
Oil for October delivery was down $3.07 to settle at $69.68 a barrel in New York.
Bond prices rose, with the benchmark 10-year note gaining 9/32 to 101-23/32. Its yield, which moves inversely, was 3.41%.
After a strong rally of 1,100 points or 7.5%, the Indian markets decided to take a breather. The key indices fell for the first time in seven trading sessions, with the sentiment hurt by yet another steep fall in the Chinese market. The first-quarter GDP growth, which was in line with expectations and better than the previous quarter, could not arrest the slide.
The Shanghai SE Composite tumbled by 6.7%, the most in over 12 months. China has played a party pooper several times over the past few days amid worries over its banking system and its fallout on its fast-growing economy. There have been reports recently that the Chinese government is trying to curb bank lending and rapid growth in infrastructure projects. The Shanghai Composite has dropped by over 20% from the year’s peak.
Barring the Realty and the Auto stocks, all the other major sectors were under the bear attack. However, the Mid-Caps and the Small-Cap were in demand. Major offloading was seen in the IT, Telecom and the Metal stocks.
Technically, on Friday, it was the fifth time the NSE Nifty was unable to absorb the selling pressure at around the 4720-30 levels. In the recent past after hitting the 4,730 levels, the Nifty has corrected nearly 8% in merely 10 trading sessions. Are we again in for an 8-10% downfall? Only time will tell.
India’s Q1 GDP grew 6.1% as against 7.8% in the same period last year. Markets players expected economy to grow 6.2% last quarter. In the fourth quarter of FY09, the Indian economy had grown by 5.8%. Agriculture rose by 2.4% versus 3% in the year-ago period. Industry grew 5% as against 6.1% in the same quarter last year. Construction grew 7.1% versus 8.4% in the same period previous year. While, services grew by 7.8% as against 10.2% in Q1 FY09.
Meanwhile, selling was not only seen in China and India but all over the emerging countries. Even European equity markets opened with a negative bias.
The BSE Sensex lost by 263 points or 1.6% at 15,659 after touching a high of 15,821 and a low of 15,589. The index opened at 15,812 against the previous close of 15,922. The NSE Nifty lost 74 points to shut shop at 4,658.
In Asia, Shanghai index in China plummeted by 6.7% at 2,667 sliding over 20% from its years peak. The Nikkei in Japan ended lower by 0.5% at 10,492 while Australia's S&P/ASX ended lower by 0.3% at 4,479. The Hang Seng index in Hong Kong was fell 2% at 19,724.
In Europe, stocks were trading in the red. The FTSE in the UK was closed. The DAX in Germany was down 0.8% and the CAC 40 index in France was down 0.8%.
Coming back to India, among the BSE sectoral indices, the Metal index was the top loser, shedding 2.3%, followed by the IT index that was down 2.2%. The BSE Teck index down 2.1% and the BSE Oil & Gas index was down 2%.
However, among the major gainer was the BSE Realty index up 2.1% and BSE Auto index up 1.5%. Even the broader indices outperformed, BSE Mid-Cap index gained 0.2% and the BSE Small-Cap index gained by 0.4%.
Among the 30-components of Sensex, 22 stocks ended in the green and 8 ended in the negative terrain. Among the major laggards were Reliance Industries, Infosys, L&T, ICICI Bank, ITC and Bharti.
On the other hand, M&M, DLF, HDFC Bank and NTPC were among the major gainers.
Outside the frontline indices, the big losers in the broader market were Welspun Gujarat, Fortis Health, GE Ship, M&M Finance and Bharat Forge. On the other hand, gainers included Godrej Industries, Gujarat NRE Coke, Renuka Sugar and Ackruti City.
Shares of Tata Motors ended with a negative bias after the company announced that the Group has posted a net loss of Rs(3,287.8)mn for the quarter ended June 30, 2009 where as the same was net profit at Rs7,196.9mn for the quarter ended June 30, 2008.
Total Income is Rs16,7180.7mn for the quarter ended June 30, 2009 where as the same was at Rs14,7406.5mn for the quarter ended June 30, 2008.
Shares of Maytas Infra were locked at 5% upper circuit at Rs112.80 after the board of directors of the company received a proposal to substitute existing promoter, they also got proposal to acquire management control.
The board has referred the proposal for new promoter to the company Law board. Salman Khurshid the Union minister of corporate affairs said, that IL&FS will be promoter of Maytas Infrastructure. IL&FS is currently the largest holder in Maytas and wants two of the government nominees to continue on board.
Earlier in the day ~1.7mn shares, or 2.8% equity shares of the Maytas, changed hands in five transactions.
While, shares of IL& FS shot up by over 15% to Rs265. The stock opened at Rs228 and made an intra-day high of Rs275 and a low of Rs223. Total traded volumes stood at 1.9mn shares.
Shares of Kingfisher Airlines have gained by 1% to Rs48.20 after the company announced that the board of directors passed an enabling resolution for an additional fund raising through various instruments including GDRs, upto an amount of US$100mn, subject to the approval of the shareholders.
This is over and above the decision taken at the last board meeting held on July 28, 2009 for induction of capital for an amount not exceeding Rs5bn by way of rights issue of Equity shares, as already intimated.
Shares of Cairn India surged by over 2% to Rs265 after Cairn India on Saturday started production of crude oil from it's Mangala field in Rajasthan. Mangala is the largest of 25 discoveries made by Cairn in the Barmer Basin in Block RJ-ON-90/1.
The Mangala field was dedicated to the Nation by Prime Minister, Dr. Manmohan Singh, at the Mangala Processing Terminal, Barmer, Rajasthan today in an inauguration ceremony attended by Central and State Government officials.
Shares of ITI surged by over 4.5% to Rs39.15 after the company announced that it secured Rs1.67bn order from BSNL. The stock opened at Rs37.45 and made an intra-day high of Rs39.20 and a low of Rs36.75. Total traded volumes stood at 0.49mn shares.
Amtek Auto
We recommend a buy in the stock of Amtek Auto from a short-term perspective. It is evident from the charts of Amtek Auto that it has been on an intermediate-term uptrend since its November 2008 low of Rs 42, forming higher peaks and troughs. In July the stock took support around Rs 90 and bounced back, resuming its uptrend. Since then, the counter has been on a medium-term uptrend too. The stock penetrated its 50-day moving average in early August and is trading well above this average. We notice that there is an increase in volume over the past three trading sessions. The daily as well as weekly relative strength indices (RSI) are featuring in the bullish zone. Besides, 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 it to move up until it hits our price target of Rs 171. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 147.
via BL
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