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Wednesday, September 02, 2009
Sensex ends lower for 3rd consecutive session
Realty, auto, capital goods and power stocks pulled the Sensex down 83 points to settle at 15,467.46. IT, tech and healthcare stocks resisted the trend. It opened with a loss of 69.14 points, at 15,482.05 on Wednesday tracking subdued global cues. The index traded in a lacklustre manner due to lack of cues amid volatility through the day, touching a high of 15,628.10 and low of 15,392.68.
BSE Midcap and Smallcap index dipped 0.68% and 0.32% respectively.
On sectoral front, BSE Realty, Auto, Capital goods and Power declined over 1% each, while IT rose 0.98%, Teck rose 0.52%.
European stocks fell on speculation a six-month rally has outpaced the prospects for earnings growth after valuations for the Dow Jones Stoxx 600 Index climbed to the most expensive level in six years. UK`s benchmark index FTSE 100 fell 8.14 points, or 0.18%, to trade at 4,811.13. French benchmark index CAC 40 fell 22.72 points, or 0.63%, to trade 3,560.05. Germany`s benchmark index DAX decreased 22.16 points, or 0.45%, to trade at 5,302.36. (4.23 p.m., IST)
The Sensex ended the day with a loss of 83.73 points, or 0.54% at 15,467.46 after touching a high of 15,628.10 and a low of 15,392.68. The broad-based NSE Nifty declined 16.65 points, or 0.36% at 4,608.35 after hitting a high of 4,650.45 and a low of 4,576.60.
Major gainers in the 30-share index were Reliance Communications (5.97%), Tata Motors (5.90%), Maruti Suzuki India (5.16%), Hero Honda Motors (2.97%), Hindustan Unilever (2.73%), and Reliance Capital (2.48%).
On the other hand, Sterlite Industries (India) (5.95%), Bharat Heavy Electricals (4.90%), Jaiprakash Associates (4.75%), Mahindra & Mahindra (3.55%), Housing Development Finance Corporation (3.10%), and DLF (2.92%) were the major losers in the Sensex pack.
Overall market breadth was negative. Out of the total 2,846 stocks traded at BSE, 1,163 advanced, 1,601 declined while 82 remained unchanged.
IPO Grey Market Premium - Oil India, Jindal Cotex
| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) |
| Jindal Cotex | 70 to 75 | 4 to 4.50 | -- |
| Globus Spirits Ltd. | 90 to 100 | 8 to 10 | 1800 to 2000 (+ 250 Form Commission) |
| Oil | 950 to 1050 | 90 to 95 | 1800 to 1900 (+ 250 Form Commission) |
Nifty September 2009 futures at premium
Turnover declines
Nifty September 2009 futures were at 4618.20, at a premium of 9.85 points as compared to the spot closing of 4608.35. Turnover in NSE's futures & options (F&O) segment was Rs 63,487.76 crore, much lower than Rs 74,486.28 crore on Tuesday, 1 September 2009.
Reliance Industries September 2009 futures were at premium at 1975 compared to the spot closing of 1971.15.
Suzlon Energy September 2009 futures were at premium at 98.30 compared to the spot closing of 97.15.
Unitech September 2009 futures were at premium at 103.20 compared to the spot closing of 102.65.
In the cash market, the S&P CNX Nifty declined 17 points or 0.37% at 4608.35.
Reliance Infratel plans to raise Rs 5,000-crore through an IPO
To finance expansion plans
Reliance Infratel, the tower subsidiary of telecom service provider Reliance Communications (RCom), will reportedly file a draft red herring prospectus (DRHP) with Sebi within a week. Reliance Infratel plans to raise around Rs 5,000 crore through the proposed initial public offer (IPO). The company is looking at offloading a minimum of 10% stake in the IPO.
This would be second largest IPO after the last year's market meltdown, the biggest being the Rs 6,000-crore IPO by state-run National Hydroelectric Power Corporation (NHPC).
Last year, Reliance Infratel had got market regulator Sebi to approve its proposed IPO. However, fragile market conditions resulted in the company putting its IPO plans on hold.
The company will utilise the IPO proceeds for its expansion plans, including expansion of its portfolio of telecom towers and footprint.
RCom which holds a 95% stake in Reliance Infratel, presently has over 50,000 towers.
BSE Bulk Deals to Watch - Sep 2 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
2/9/2009 530499 A K CAPITAL SIHL CONSULTANCY LTD. B 34300 221.00
2/9/2009 530499 A K CAPITAL FIRSTRAND (IRELAND) PUBLIC LIMITED COMPANY S 42500 220.32
2/9/2009 531223 ANJANI SYNTH OM EDUCATION (IT) PVT LTD B 355286 40.24
2/9/2009 531223 ANJANI SYNTH AYODHYAPATI INVESTMENT PVT LTD B 130226 38.80
2/9/2009 531223 ANJANI SYNTH OM EDUCATION (IT) PVT LTD S 355286 39.11
2/9/2009 531223 ANJANI SYNTH USHADEVI SHAHRA S 58554 41.40
2/9/2009 531223 ANJANI SYNTH VISHESH SHAHRA S 81099 37.50
2/9/2009 500031 BAJAJ ELECTR BAJAJ HOLDINGS & INVESTMENTS LTD. B 100000 600.00
2/9/2009 500031 BAJAJ ELECTR BAJAJ INTERNATIONAL PVT.LTD. S 100000 600.00
2/9/2009 532839 DISH TV AMRIT AND COMPANY B 3232596 46.02
2/9/2009 532839 DISH TV AMRIT AND COMPANY S 3232596 45.21
2/9/2009 517973 DMC INTER RUCHI KAPOOR B 50000 9.15
2/9/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 39159 9.75
2/9/2009 517973 DMC INTER ABHINAY KAPOOR S 25000 9.75
2/9/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD S 57968 9.20
2/9/2009 532022 FILAT FASH AYODHYAPATI INVESTMENT PVT LTD S 33100 81.79
2/9/2009 513337 GUJ.TOOLROOM MEVIL MUKESHBHAI PAMCHAL S 19000 13.15
2/9/2009 532764 GWALIOR CHEM MORGAN STANLEY MAURITIUS COMPANY LIMITED S 146030 98.19
2/9/2009 530315 HIND TIN WOR SAMPADA CHEMICALS LTD B 56500 84.24
2/9/2009 511682 IFL PRMOTER RUCHI KAPOOR B 20000 8.02
2/9/2009 511682 IFL PRMOTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 40300 8.41
2/9/2009 511682 IFL PRMOTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD S 48400 7.97
2/9/2009 506522 J L MORISO I JAIDEEP HALWASIYA B 7528 311.25
2/9/2009 530255 KAY POW PAP SUNDER DASS AGARWAL B 74516 6.98
2/9/2009 500256 LOK HOUSI CO JMP SECURITIES PVT LTD B 293438 38.77
2/9/2009 500256 LOK HOUSI CO JMP SECURITIES PVT LTD S 251431 38.54
2/9/2009 590060 MK EXIM PRABHAT YOGI S 65321 27.32
2/9/2009 531272 NIKKI GLOB F RAKESH SACHAN B 17496 22.88
2/9/2009 509839 PUNJAB WOOLC INNOVATIVE DATA ORGANISERS PVT LTD B 64000 5.55
2/9/2009 509839 PUNJAB WOOLC SUSHMA RANI PUNNI S 82900 5.55
2/9/2009 511652 RAM KAASHYAP SHOBHA IMTIYAZ DESAI S 24100 18.26
2/9/2009 531952 RIBA TEXTILE REHWA CORPORATION LIMITED B 90000 35.25
2/9/2009 531952 RIBA TEXTILE SHAILESH SOMABHAI PATEL S 136667 35.25
2/9/2009 531374 SAAG RR INFR ANGEL INFIN PRIVATE LIMITED B 328168 26.91
2/9/2009 531374 SAAG RR INFR Naman Securities & Finance Pvt. Ltd. B 84527 29.20
2/9/2009 531374 SAAG RR INFR JMP SECURITIES PVT LTD B 144706 26.92
2/9/2009 531374 SAAG RR INFR BHAVIN Y MEHTA B 75013 29.40
2/9/2009 531374 SAAG RR INFR ANGEL INFIN PRIVATE LIMITED S 408456 28.22
2/9/2009 531374 SAAG RR INFR JMP SECURITIES PVT LTD S 129706 26.88
2/9/2009 531901 SAARC NET GOVIND SHARDA S 610000 2.34
2/9/2009 512640 STOCKNET INT POONAM BAGJARIA S 37149 2.10
2/9/2009 532917 VARUN INDS HITESH SHASHIKANT JHAVERI B 195297 182.69
2/9/2009 532917 VARUN INDS HITESH SHASHIKANT JHAVERI S 158522 182.38
2/9/2009 531874 VENUS VENT VIPUL HIRALAL SHAH B 50001 44.17
2/9/2009 531874 VENUS VENT VIPUL HIRALAL SHAH S 50000 44.17
2/9/2009 531668 VISION CORPO JAGDISH RAMNIKLAL SHETH B 132000 7.54
2/9/2009 519602 VMF SOFT TEC RAJENDRA NANIWADEKAR B 45000 6.50
2/9/2009 519602 VMF SOFT TEC Y RAVI PRASAD S 50000 6.50
2/9/2009 531249 WELL PACK PA PANDYA HARDIK M B 43915 187.43
2/9/2009 531249 WELL PACK PA NARENDRA KUMAR SHAH B 32500 187.24
2/9/2009 531249 WELL PACK PA PANDYA HARDIK M S 44003 187.65
2/9/2009 531249 WELL PACK PA SHOBHANA NARENDRAKUMAR SHAH S 29200 187.49
NSE Bulk Deals to Watch - Sep 2 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
02-SEP-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,358817,1544.34,-
02-SEP-2009,ARCHIES,Archies Limited,ANGEL INFIN PRIVATE LIMITED,BUY,38051,102.03,-
02-SEP-2009,ARCHIES,Archies Limited,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,BUY,40055,102.17,-
02-SEP-2009,ARCHIES,Archies Limited,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,46510,101.96,-
02-SEP-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,4173581,4.46,-
02-SEP-2009,DISHTV,Dish TV India Limited,GRD SECURITIES LIMITED,BUY,2343618,46.01,-
02-SEP-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,3722156,53.32,-
02-SEP-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,10374853,22.44,-
02-SEP-2009,JAYSREETEA,Jayashree Tea Ltd.,MBL & COMPANY LTD.,BUY,57367,277.44,-
02-SEP-2009,PSL,PSL Limited,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,455200,161.00,-
02-SEP-2009,REDINGTON,Redington (India) Limited,SBI MUTUAL FUND A/C MGLF,BUY,943000,250.00,-
02-SEP-2009,REDINGTON,Redington (India) Limited,T.ROWE PRICE INTERNATIONAL- INTERNATIONAL DISCOVERY FUND,BUY,1195333,250.00,-
02-SEP-2009,SOLEMS,Solectron EMS India Limit,MANJULA JAYANTILAL JAIN,BUY,39883,47.26,-
02-SEP-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,358817,1544.72,-
02-SEP-2009,ARCHIES,Archies Limited,ANGEL INFIN PRIVATE LIMITED,SELL,34251,102.50,-
02-SEP-2009,ARCHIES,Archies Limited,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,SELL,27060,101.73,-
02-SEP-2009,ARCHIES,Archies Limited,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,38629,101.49,-
02-SEP-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,4177758,4.48,-
02-SEP-2009,DISHTV,Dish TV India Limited,GRD SECURITIES LIMITED,SELL,1643618,45.15,-
02-SEP-2009,EASTSILK,Eastern Silk Indust. Ltd.,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,495000,12.74,-
02-SEP-2009,GWALCHEM,Gwalior Chemical Industri,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,243000,98.13,-
02-SEP-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,3722156,53.26,-
02-SEP-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,10551147,22.45,-
02-SEP-2009,JAYSREETEA,Jayashree Tea Ltd.,MBL & COMPANY LTD.,SELL,57367,277.81,-
02-SEP-2009,PSL,PSL Limited,CLSA (MAURITIUS) LIMITED,SELL,300200,161.00,-
02-SEP-2009,REDINGTON,Redington (India) Limited,BEETHOVEN LIMITED,SELL,2397767,250.68,-
Post Session Commentary - Sep 2 2009
Markets closed the today’s volatile session on a lackluster note after showing gains during the mid session on the back of far end profit booking across the selective indices. Stocks managed to gain ground after subdued opening on some buying sentiment. However, market pared most of its gains during last hours on weak cues from the global markets and lower US index futures. Investors selected to tread a cautious path due to lack of prominent triggers. The BSE Sensex ended below 15,600 level and NSE Nifty closed below 4,650 mark.
The market today extended its yesterday’s losses and opened on subdued note on the back of weak cues from the global markets. The Asian markets were lower today and the US stocks markets closed in red on Tuesday, on huge sell off led by worries about more bank failures and on belief that stocks are purchased in excess. Investors ignored some encouraging report on the manufacturing front, as the ISM manufacturing index increased to 52.9 in August from 48.9 in July. Besides, market also shrugged off another positive economic report, the sixth straight monthly increase in pending home sales in July. Further, Indian benchmark indices suddenly gained momentum and moved into green on some buying emerged at lower level. Going ahead, stocks turned volatile and continued to swing between positive and negative. Finally, market closed with losses as negative global markets weighed sentiments. From the sectoral front, Realty, Auto, Capital Goods, Power, Bank and Metal stocks witnessed most of the selling from these baskets. BSE Midcap and Smallcap stocks also remained under pressure. However, IT, Teck and Pharma stocks gained favour from the market.
Among the Sensex pack 21 stocks ended in red territory, 8 in green territory and 1 remained unchanged. The market breadth indicating the overall health of the market remained negative as 1601 stocks closed in red while 1163 stocks closed in green and 82 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 83.73 points or (0.54%) at 15,467.46 and NSE Nifty ended down by 17 points or (0.37%)at 4,608.35. BSE Mid Caps and Small Caps closed with losses of 39.46 and 22.15 points at 5,758.03 and 6,869.02 respectively. The BSE Sensex touched intraday high of 15,628.10 and intraday low of 15,392.68.
Losers from the BSE Sensex pack are Sterlite Industries (3.16%), BHEL (2.65%), JP Associates (2.57%), Maruti Suzuki (2.27%), Bharti Airtel (2.13%), M&M Ltd (2.09%), Grasim Industries (1.44%), Tata Power (1.37%), NTPC Ltd (1.19%), DLF Ltd (1.18%), ICICI Bank (1.15%) and L&T Ltd (1.07%).
Gainers from the BSE Sensex pack are RCom (4.56%), HUL (2.01%), Herohonda Motors (1.40%), TCS Ltd (1.19%), Infosys Tech (1.05%) and sun Pharma (0.97%).
On the global markets front, the Asian markets that opened before the Indian market, ended mostly lower after a big fall on Wall Street. Japanese stocks dropped sharply with Elpida Memory Inc. falling on equity dilution concerns after it announced a fund-raising plan. Hang Seng, Nikkei 22, Singapore''s Straits Times Index and Seoul Composite closed down by 350.30, 249.60, 26.46 and 9.9 points at 19,522, 10,280.46, 2,569.93 and 1,613.16 respectively. However, Shanghai Composite gained 31.25 points at 2,714.94. Chinese stocks ended higher, spurred by gains in oil refiners after Beijing hiked fuel prices.
European markets, which opened after the Indian market, are trading in red on profit booking. In Frankfurt the DAX index is trading lower by 33.17 points at 5,294.12 and in London FTSE 100 is trading down 12.34 points at 4,807.36.
The BSE Realty index closed lower by (1.76%) or 75.38 points at 4,202.65. Losers are Housing Dev (4.03%), Indiabull Real (3.78%), Pheonix Mill (3.72%), Mahindra Life (3.53%) and Orbit Co (2.88%).
The BSE Auto index lost (1.36%) or 81.86 points at 5,940.58. Losers are Amtek Auto (5.05%), Bajaj Auto (4.09%), Exide Industries (3.65%), Cummins Indi (3.07%) and Maruti Suzuki (2.27%).
The BSE Capital Goods index dropped by (1.26%) or 163.55 points at 12,772.07. Losers are Praj Industries (3.10%), Everest Kanto (2.84%), BHEL (2.65%), Elecon Eng C (2.59%) and Usha Martin (2.56%).
The BSE Power index decreased by (1.08%) or 31.63 points at 2,910.61. Losers are BHEL (2.65%), Siemens Ltd (1.39%), Tata Power (1.37%), GVK Power (1.26%) and ABB Ltd (1.07%).
The BSE Bank index ended down by (0.61%) or 50.29 points at 8,228.20 as Bank of Baroda (2.53%), Federal Bank (1.79%), ICICI Bank (1.15%), Bank of India (1.14%) and Kotak Bank (1.11%) ended in red.
The BSE IT index closed up by (0.98%) or 41.08 points at 4,231.3 on better than expected economic data in the US. Weak rupee also supported the recovery. Main gainers are Aptech Ltd (6.67%), Oracle Fin (5.21%), HCL Tech (3.65%), Rolta Ind (1.31%) and TCS Ltd (1.19%).
Oracle Financial Services Software closed up by 5.21%. The company announces new Release of Oracle Mantas for Financial Crime Management. New Oracle Mantas Fraud Release Strengthens Fraud Detection to Help Financial Institutions Defend Against Increasingly Sophisticated and Globalized Financial Crime Schemes.
Ranbaxy ended higher by 1.03%. The company has received an order from the government for supplying Oseltamivir capsules, which is used in the treatment of Influenza A H1N1 (swine flu).
Vivimed Labs Ltd zoomed 4.97% after the firm bought back $12.5 million out of outstanding $15 million of foreign currency convertible bonds due for redemption in April 2012.
Herohonda Motors Ltd gained 1.40% on surge in sales in August 2009.
Strides Arcolab Ltd advanced 6.42% after the company received a large order to supply the generic version of Roche’s anti-viral, Tamiflu, used to treat the H1N1 flu.
Redington India Ltd zoomed 10.86% after a block deal of 22.19 lakh shares was executed on NSE at Rs. 250 per share.
Reliance Communication Ltd spurted 4.56% on reports the firm prepaid a term loan of Rs. 5,000 crore raised a year earlier that would help the company save Rs 700 crore in annual interest costs.
Pratibha Industries Ltd advanced 5.19% after the company secured a contract worth Rs. 406.06 crore.
Sensex drops 84 points
The market went into a correction mode at the opening bell and remained in negative territory for half of the session. Weak global markets, continuing net outflows weighed on the sentiment. After resuming 69 points lower at 15482, the index slipped below the 15400-mark by mid-morning trades before a bout of buying support saw it nearly rebound and cross the 15600-level in late morning trades and touch the day’s high of 15628. However, sustained selling in noon trades saw the index slide sharply and slip below the 15400-mark to touch the day's low of 15393. The Sensex pared some losses towards the close and ended the session at 15467, down 84 points. The Nifty declined 17 points to close at 4608.
All the 13 sectoral indices on the BSE were up or down marginally. BSE Realty shed 1.76%, BSE Auto lost 1.36%, BSE CG gave up 1.26% and BSE Power fell 1.08%, while BSE Bankex and BSE Metal were down around 0.50% each. BSE IT, BSE Teck and BSE HC however logged steady gains.
A steep fall in select heavyweights dragged the markets down. Sterlite Industries dropped 3.16% to Rs635.15, Bharat Heavy Electricals tumbled 2.65% to Rs2,261.20, JP Associates slumped 2.57% to Rs216.35, Maruti Suzuki India dipped 2.27% to Rs1,510.80, Bharti Airtel declined 2.13% to Rs412.65, Mahindra & Mahindra fell 2.09% to Rs829.55, Grasim Industries lost 1.44% to quote at Rs2,607.05 and Tata Power slipped 1.37% to trade at Rs1,283.75. However, select front-line counters attracted buying support. Reliance Communications rose 4.56% to Rs276, Hindustan Unilever added 2.01% to quote at Rs266.95, Hero Honda Motors moved up by 1.40% to Rs1,556.30, Tata Consultancy Services advanced 1.19% to Rs532.85 and Infosys Technologies jumped 1.05% to Rs2,165.20.
Over 3.38 crore NHPC shares changed hands on the BSE followed by Suzlon Energy (1.97 crore shares), Unitech (1.89 crore shares), Mahindra Satyam (1.77 crore shares) and Dish TV India (1.09 crore shares).
Valuewise, Reliance Capital registered a turnover of Rs233 crore followed by Mahindra Satyam (Rs213 crore), Unitech (Rs196 crore), Suzlon Energy (Rs190 crore) and DLF (Rs165 crore).
Sensex sheds nearly 3% in three days on profit taking
The key benchmark indices edged lower, extending losses for the third straight day, as weak global stocks and lower US index futures weighed on investor sentiment. The BSE 3/0-share Sensex fell 83.73 points or 0.54%, off close to 155 points from the day's high and up close to 80 points from the day's low.
Index heavyweight Reliance Industries fell in volatile trade. Realty and capital goods stocks fell. Auto stocks were mixed. IT stocks rose on a weaker rupee. The market breadth was weak after moving between the positive and negative breadth zone during the trading session.
The market was volatile. The key benchmark indices recovered and turned into green after a weak start triggered lower Asian stocks and losses on the Wall Street on Tuesday, 1 September 2009. The market once again slipped into the red in mid-morning trade. The market bounced back again with the Sensex surging to fresh intraday high in early afternoon trade. The market once again slipped into the red in afternoon trade. The market moved between positive and negative and terrain in mid-afternoon trade. The market weakened in late trade.
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 on Tuesday, 1 September 2009, showed.
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.
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.
Farm secretary T. Nanda Kumar today said improved monsoon rains in recent days will boost crop prospects for rice and sugar cane. He said other crops would also gain.
The monsoon witnessed a revival in the second half of August 2009 but the cumulative rains were still a quarter below average till last week. 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.
European stocks dipped on Wednesday, losing ground for the third straight session, with banking shares among the most hit. Key benchmark indices in France, Germany and UK were down by between 0.09% to 0.44%.
Asian shares dropped on Wednesday after a sell-off on Wall Street on Tuesday prompted profit taking. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore fell by between 0.61% to 2.37%.
But, China's Shanghai Composite rose 1.16%, led higher by bank stocks, after a report showed that banks lent 320 billion yuan in August 2009, a smaller figure than in previous months, but higher than some feared. Taiwan's Taiwan Weighted index gained 0.29%.
Trading in US index futures indicated Dow could open flat on Wednesday, 2 September 2009.
US markets started the month of September with a sharp selloff on Tuesday, 1 September 2009 on the back of worries about more bank failures and on concerns fact that the market may have gotten ahead of the economic recovery. The Dow slipped 185.68 points, or 2%, to 9,310.60. The S&P 500 fell 22.58 points, or 2.2%, to 998.04, while the Nasdaq Composite Index fell 40.17 points, or 2%, to 1,968.89.
The ISM manufacturing index rose to 52.9 in August from 48.9 in July. This was better than the 50.5 that was expected, it was also first time the reading topped 50 since January 2008. A reading above 50 indicates expansion in manufacturing.
Pending-home sales jumped 3.2% in July to their highest level since June 2007. It was the sixth straight increase and better than the 2% rise economists had expected. But construction spending slipped 0.2% in July against a 0.1% uptick in June.
The BSE 30-share Sensex lost 83.73 points or 0.54% to 15,467.46. The Sensex rose 76.91 points at the day's high of 15628.10 in early afternoon trade. The Sensex fell 158.51 points at the day's low of 15,392.68 in early trade.
The S&P CNX Nifty was down 17 points or 0.37% to 4,608.35. Nifty September 2009 futures were at 4618.20, at a premium of 9.85 points as compared to the spot closing of 4608.35. Turnover in NSE's futures & options (F&O) segment was Rs 63,487.76 crore, much lower than Rs 74,486.28 crore on Tuesday, 1 September 2009.
BSE clocked a turnover of Rs 5412 crore, lower than Rs 7547.38 crore on Tuesday, 1 September 2009.
The BSE Sensex has lost 454.88 points or 2.85% in the last three days after gaining for seven straight days. The 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 5820.15 points or 60.32% in calendar year 2009 as on 2 September 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7307.06 points or 89.54% as on 2 September 2009. FII inflow in calendar year 2009 totaled Rs 39895.46 crore (till 1 September 2009)
The market breadth, indicating the overall health of the market, was weak after hovering between positive and negative zone earlier. On BSE, 1154 shares declined as compared with 1604 that rose. A total of 80 shares remained unchanged.
Among the 30-member Sensex pack, 21 fell while rest rose.
The BSE Mid-Cap index fell 0.68% and underperformed Sensex. The BSE Small-Cap index fell 0.35%. It outperformed Sensex.
The BSE IT index (up 0.98%), the BSE Teck index (up 0.52%), the BSE Healthcare index (up 0.28%), the BSE FMCG index (up 0.26%), the BSE Oil & Gas index (up 0.16%), the BSE Consumer Durables index (down 0.19%), the BSE PSU index (down 0.35%), the BSE Metal index (down 0.44%), outperformed the Sensex.
The BSE Realty index (down 1.76%), the BSE Auto index (down 1.36%), the BSE Capital Goods index (down 1.26%), the BSE Power index (down 1.08%), the BSE Bankex (down 0.61%), underperformed the Sensex.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 0.52% to Rs 1971.75. The stock hit a high of Rs 1997.10 and a low of Rs 1956.30. The government on Tuesday amended the special leave petition filed in the Supreme Court stating that the country's largest utility NTPC and Anil Ambani's Reliance Natural Resources (RNRL) were not on the same footing with regard to the supply of gas from the Krishna-Godavari basin by Reliance Industries (RIL). The price of gas to be paid by NTPC, the government said in its application, will be considered in-dependently of the RIL-RNRL case.
The biggest change in the government's stand on Tuesday is its categorical assertion that the government-set price of $4.20 per MMBTU was not applicable to a disputed contract between NTPC and RIL.
The Bombay High Court had asked RIL to supply 28 million standard cubic meters (mmscmd) of gas to RNRL at $2.34 per mmbtu. RIL has appealed this decision in the apex court. Subsequently, the ministry of oil and natural gas had also moved the apex court by filing an independent SLP. It was only an intervenor before the high court in the case.
Meanwhile, as per media reports, Reliance Industries is planning a foray into the global pipeline construction business with a bid for building oil and gas pipeline in Mexico worth Rs 3000 crore.
India's largest thermal power producer by sales NTPC fell 1.19% and RNRL rose 2.38%.
India's largest oil exploration firm by market capitalisation ONGC fell 0.43% on fall in crude oil prices. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms. ONGC had 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.
PSU OMCs rose as crude-oil futures ended lower Tuesday. BPCL, Indian Oil Corporation and HPCL rose by between 3.44% to 6.64%. 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.
Light, sweet crude for October delivery settled $1.91, or 2.7%, lower at $68.05 a barrel on the New York Mercantile Exchange on Tuesday as investor confidence in a quick US economic recovery faltered.
IT stocks rose on improved economic data in the US. US is the biggest market for IT firms. A weak rupee also aided gains. India's second largest software services exporter Infosys Technologies rose 1.05% even as its ADR fell 0.23% on Tuesday. A foreign brokerage, last week, reduced its rating on the stock 'underweight' from 'equal-weight', saying the stock's valuation is 'rich'.
India's largest software services exporter TCS rose 1.19% after a foreign brokerage raised its rating on the stock to 'overweight' from 'neutral'. The brokerage said the company is a 'solid defensive investment'. But, India's third largest software services exporter Wipro fell 0.8% as its ADR fell 0.63% on Tuesday.
In one of the largest deals, the top-three Indian vendors Infosys, TCS and Wipro along with IBM Corp, last week, 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 Indian rupee came off a 1-1/2 month low against the dollar. The partially convertible rupee settled at 49.03/04 per dollar, almost unchanged for the day. It initially dropped to 49.21, which was its weakest since 13 July 2009. A weak rupee boost revenues of IT firms in rupee terms as the sector derives a lion's share of revenues from exports.
Realty stocks fell on profit taking after recent gains. DLF, Unitech, Indiabulls Real Estate, Phoenix Mills, fell by between 1.18% to 3.78%.
As per reports 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. Realty market had slumped last year amid a global credit crunch and buyers fearing job losses.
Auto stocks were mixed after recent strong gains triggered by healthy sales in August 2009. Maruti Suzuki, India's top car maker by sales, fell 2.27% on profit taking after Tuesday's 7.61% rally. The company's total vehicle sales rose 41.6% to 84,808 units in August 2009 over August 2008. The company announced August sales figures during market hours on Tuesday.
Indian largest tractor maker by sales Mahindra & Mahindra fell 2.09%. Mahindra & Mahindra's (M&M) total vehicle sales rose 15% to 22,063 units in August 2009 over August 2008. The company announced August sales figures during market hours on Tuesday.
India's largest truck marker by sales Tata Motors was flat at Rs 518.20 after the stock jumped nearly 6% on Tuesday. The company's vehicle sales rose 14.23% to 49810 units in August 2009 over August 2008. The company announced August sales figures after market hours on Tuesday.
India's largest motorbike maker by sales Hero Honda Motors rose 1.4%. The company's sales rose 36% in August 2009 over August 2008. TVS Motor company was flat after more than 5% gains on Tuesday. The two wheeler maker reported a 10.95% jump in sales to 126,842 units in August 2009 over August 2008. Both Hero Honda and TVS announced August sales figures during market hours on Tuesday.
Construction and capital goods fell on profit taking. From capital goods space, Bharat Heavy Electricals, Thermax, ABB, Siemens, Praj Industries, BEML, Punj Lloyd, fell by between 0.08% to 3.1 %.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell 1.07%. 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.
From the construction pack, Nagarjuna Construction Company, IVRCL Infrastructure, Hindustan Construction Company, Era Infra Engineering, fell by between 0.08% to 0.93%.
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
Metal stocks fell as LMEX, a gauge of six metals traded on the London Metal Exchnage fell 3.6% on Tuesday, 1 September 2009. JSW Steel, Jindal Saw, National Aluminum Company fell by between 1.19% to 3.6%.
India's largest steel maker by sales Tata Steel was down 0.24%, extended recent losses. 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 3.16%. A US bankruptcy court has rejected Sterlite Industries' bid to acquire Asarco, six months after the Indian company had signed an agreement to acquire the beleaguered US copper miner. The bankruptcy court in Corpus Christi, Texas, recommended the offer of rival Grupo Mexico. The case has been sent to the US District Court Judge Andrew S Hanen in Texas for a final decision, which is expected in the next four to six weeks time. Sterlite has been chasing Asarco since last year.
Cement stocks fell mostly lower. India's largest cement maker by sales ACC fell 0.1% even as its cement dispatches rose 7.14% to 1.65 million tonnes in August 2009 over August 2008. ACC announced the sales figure during market hours today.
Ambuja Cements rose 1.32% after cement sales rose, albeit slightly, to 1.43 million tonnes in August 2009 from 1.42 million tonnes in August 2008.
UltraTech Cement, Grasim Industries, Birla Corporation, fell by between 1.44% to 1.93%.
Shares of state-run hydropower generator NHPC fell 0.82% to Rs 36.40. A huge volume of 3.38 crore shares was recorded in the stock on BSE. The stock had settled at Rs 36.70 on BSE on the day of its debut on Tuesday, a premium of less than 2% over the IPO price.
Among other power stocks, GVK Power & Infrastrucutre, Reliance Infrastructure, Torrent Power, CESC, fell by between 0.18% to 1.27%.
Tata Power Company fell 1.37% 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.
Drug maker Ranbaxy Laboratories rose 1.03% and another drug maker Strides Arcolab rose more 6% after the two companies got government orders to supply the generic version of Roche's anti-viral, Tamiflu, used to treat the H1N1 flu.
Among other healthcare stocks, Biocon, Lupin, Dr Reddy's Laboratories and Aurobindo Pharma, rose by between 0.67% to 1.07%.
Bank stocks fell on weak American depository receipts on Tuesday. India's largest private sector bank by net profit ICICI Bank fell 1.15% as its American depository receipt (ADR) fell 3.83% on Tuesday. 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 0.6% as its ADR fell 3.49% on Tuesday.
But, India's biggest bank in terms of branch network State Bank of India (SBI) rose 0.11%. 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.
India's second largest mobile telecom services provider by sales Reliance Communications rose 4.56% on reports it has prepaid Rs 5,000 crore term loan raised from various domestic and foreign banks less than a year ago for three to five year terms. This will help the company save Rs 700 crore on annual interest costs.
Shares of some tea makers rose on firm tea prices. Tea prices have risen in tea auction due to fall in production in Kenya, India and Sri Lanka. Assam Tea & Exports, Harrison Malayalam, Warren Tea, Mcleod Russell rose by between 0.05% to 1.35%.
Sugar stocks rose as fall in sugar production in India has pushed global prices to multi-year highs. Shree Renuka Sugars, Dhampur Sugars and Balrampur Chini rose by between 0.24% to 4.1%.
NHPC clocked the highest volume of 3.38 crore shares on BSE. Suzlon Energy (1.97 crore), Unitech (1.89 crore shares), Mahindra Satyam (1.77 crore shares) and Dish TV (1.09 crore shares) were the other volume toppers in that order.
Reliance Capital clocked the highest turnover of Rs 234.92 crore on BSE. Mahindra Satyam (Rs 213.74 crore), Unitech (Rs 194.57 crore), Suzlon Energy (Rs 191.61 crore) and DLF (Rs 164.31 crore) were the other turnover toppers in that order.
Pre Session Commentary - Sep 2 2009
Today domestic markets are likely to open negative as majority of Asian markets have opened with blood bath on the back of weak cues from over night selling pressure in US markets. Despite some good ISM manufacturing data in US coupled with remarkable pending home sales data for the month of August and July respectively, selling pressure erupted across broader level in US. The participants across the globe are well abreast with the over valuation of stocks and therefore resulting some correction at peak levels. In the domestic arena the day’s trade is likely to be negative.
On Tuesday, 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. India’s export declined 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 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.
On Tuesday, US stock markets closed negative. Despite good macro economic data the markets slipped into red due to overselling in financial space. There are sentiments in the markets that good economic data news have been already priced in stocks at broader level and therefore any upward movement is less likely. ISM Manufacturing Index for August recorded at 52.9, which is better than the expected 50.5, but it marked the first time the reading topped 50 since January 2008. The pending home sales data for July surged a remarkable 3.2% as against 1.5% increase that was widely expected and also marked the sixth consecutive month-over-month increase for the tally. Construction spending in July fell by 0.2% month-over-month, which was below the consensus call for 0% growth, but the report didn''t receive much attention. US light crude oil futures for October delivery closed at $68.05 per barrel down by 2.7% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed lower by 185.61 points at 9,310.60, NASDAQ index closed lower by 40.17 points at 1,968.89 and the S&P 500 (SPX) also closed lower by 22.58 points at 998.04.
Today the major stock markets in Asia opened with blood bath. The Shanghai Composite is trading high by 14.45 at 2,698.175, Hang Seng is lower by 361.66 points at 19,510.64. Further Japan''s Nikkei is low by 299.69 points at 10,230.37. Taiwan Weighted is up by 5.78 points at 6,966.18.
The FIIs on Tuesday stood as net sellers in equity and net buyers debt. Gross equity purchased stood at Rs 2,673.90 Crore and gross debt purchased stood at Rs 414.50 Crore, while the gross equity sold stood at Rs 2,760.10 Crore and gross debt sold stood at Rs 92.00 Crore. Therefore, the net investment of equity and debt reported were Rs (86.20) Crore and Rs 322.40 Crore respectively.
On Tuesday, Indian Rupee closed at 49.05/06 per dollar, 0.4% weaker than its previous close at 48.83/84. The local currency lost strength due late correction in local stock market.
On BSE, total number of shares traded were 75.96 Crore and total turnover stood at Rs 7,547.38 Crore. On NSE, total number of shares traded were 161.93 Crore and total turnover was Rs 21,900.91 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 99390488 shares, followed by Suzlon Energy with 91618506, DLF with 15551621, Tata Motors with 11924392 and Tata Steel with 10560515 shares.
On NSE Future and Options, total number of contracts traded in index futures was 933805 with a total turnover of Rs 20,520.67 Crore. Along with this total number of contracts traded in stock futures were 658317 with a total turnover of Rs 21,226.35 crore. Total numbers of contracts for index options were 1296087 with a total turnover of Rs 30,663.65 Crore and total numbers of contracts for stock options were 60622 and notional turnover was Rs 2,075.61 Crore.
Today, Nifty would have a support at 4,544 and resistance at 4,665 and BSE Sensex has support at 15,236 and resistance at 15,598
Nervousness may continue
After witnessing a slump of over 300 points in last couple of trades, the market is likely to remain shaky on weak global markets. Among the key domestic indices, the Nifty may get support at 4590 and may test higher levels at 4660. The Sensex has a likely support at 15321 and on the upside could test 15738 levels.
US Indices tumbled on Tuesday, as investors retreated at the start of what is typically a rough month, betting that the six-month stock advance has raced ahead of the economic recovery. While the Dow Jones tumbling by 186 points to close at 9311. The Nasdaq declined 40 points on weak tech stocks and closed at 1969.
Except Tata Motors, all the Indian ADRs ended with sharp declines. Satyam plummeted 9.46% and VSNL crashed 4.22% while, Infosys, Wipro, Dr Reddy, ICICI Bank, HDFC Bank, MTNL, Patni Computers and Rediff dropped 1-2% each.
Crude oil prices fell further, with the Nymex light crude oil for July series slipped by $1.91 to close at $68.05 a barrel. In the commodity segment, the Comex gold for December delivery gained $3 to settle at $956.50 an ounce.
Daily trend of FII/MF investment in equities
On August 31 2009, FIIs were net sellers of stocks to the tune of Rs86 crore (purchases worth Rs2674 crore and sales of Rs2760 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs87 crore (purchases worth Rs687 crore and sales of Rs774 crore).
Market may extend last two days of losses on weak global cues
The key benchmark indices may extend last two days of losses on weak Asian stocks and close to 2% losses on Wall Street on Tuesday. Cement stocks will be in action as companies unveil August 2009 dispatchment figures. While, auto stocks may extend gains after posting strong sales figures in August 2009.
A tepid debut of state-run power firm NHPC pulled the market lower on Tuesday 1 September 2009 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% to 15,551.19 on Tuesday. 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.
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.
As per the provisional figures on NSE, foreign funds sold shares worth Rs 635.94 crore and domestic funds bought shares worth Rs 366.89 crore on Tuesday.
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 on Tuesday, 1 September 2009, showed.
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.
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.
Asian shares pulled back on Wednesday after a sell-off on Wall Street prompted a round of profit-taking. The key benchmark indices in Hong Kong, Japan, South Korea, Singapore fell by between 0.39% to 2.63%. But, China's Shanghai Composite rose 1.45% and Taiwan's Taiwan Weighted gained 0.3%.
The US markets started the month of September with a sharp selloff on Tuesday, 1 September 2009 on the back of worries about more bank failures and the fact that the market may have gotten ahead of the recovery. The Dow slipped 185.68 points, or 2%, to 9,310.60. The S&P 500 fell 22.58 points, or 2.2%, to 998.04, while the Nasdaq Composite Index fell 40.17 points, or 2%, to 1,968.89.
Investors seemed to shrug off some encouraging report on the manufacturing front. The ISM manufacturing index rose to 52.9 in August from 48.9 in July. This was better than the 50.5 that was expected, it was also first time the reading topped 50 since January 2008. Reading above 50 indicates expansion in manufacturing.
Pending-home sales jumped 3.2% in July to their highest level since June 2007. It was the sixth straight increase and better than the 2% rise economists had expected. But construction spending slipped 0.2% in July against a 0.1% uptick in June.
Crude continues to slide down
Prices drop in synchronization with US stocks
Crude prices ended substantially lower once again on Tuesday, 01 September, 2009. Prices dropped as US stocks dropped thereby dampening investor sentiments.
On Tuesday, crude-oil futures for light sweet crude for October delivery closed at $68.05/barrel (lower by $1.91 or 2.7%). During intra day trading, crude touched a high of $71.37. 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 56% since then. Year to date, in 2009, crude prices are higher by 42%.
In the currency market on Tuesday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended rose by 0.6%.
On Wall Street, stocks were solidly lower as the financial sector bore the brunt of bearish analyst comments and investors' concerns about a market correction that could last well into fall.
Among economic reports expected on Tuesday, The Institute for Supply Management reported on Tuesday, 01 September, 2009 that its index rose to 52.9% in August above the 50.5% expected. It was higher than the 48.9% in July. It's the highest reading since June 2007. Activity at the nation's manufacturing firms expanded for the first time in 19 months.
Also at the Nymex on Tuesday, October reformulated gasoline fell 2.77 cents, or 1.5%, to $1.7822 a gallon and October heating oil gave up 4.96 cents, or 2.7%, to $1.7589 a gallon.
October natural gas skidded down 15.6 cents, or 5.2%, to $2.821 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for September delivery closed lower by Rs 40 (1.2%) at Rs 3,391/barrel. Natural gas for September delivery closed lower by Rs 6.2 (4.2%) at Rs 141.3/mmbtu.
Precious metals smile
Weak US stocks impart shine to precious metals
Precious metal prices ended higher on Tuesday, 01 September, 2009. Prices rose as US stocks dropped increasing the appeal of precious metals as a safe haven against other investment alternatives.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Tuesday, gold for December delivery ended at $956.5, higher by $3 (0.3%) an ounce on the New York Mercantile Exchange. It rose as high as $958 earlier but also fell to $947.50. Last week, gold ended higher by almost 0.4%. Year to date, gold prices are higher by 9.1%.
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%) since then.
On Tuesday, Comex silver futures for September delivery rose by 13.7 cents (0.9%) to $15.06 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 33.5% this year. For 2008, silver had lost 24%.
In the currency market on Tuesday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended rose by 0.6%.
On Wall Street, stocks were solidly lower as the financial sector bore the brunt of bearish analyst comments and investors' concerns about a market correction that could last well into fall.
Among economic reports expected on Tuesday, The Institute for Supply Management reported on Tuesday, 01 September, 2009 that its index rose to 52.9% in August above the 50.5% expected. It was higher than the 48.9% in July. It's the highest reading since June 2007. Activity at the nation's manufacturing firms expanded for the first time in 19 months.
Readings above 50% in the ISM diffusion index indicate that more firms are growing than contracting. The ISM tracks the breadth of growth across firms, asking purchasing managers if business is better or worse this month than last.
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 78 (0.51%) at Rs 15,203 per 10 grams. Prices rose to a high of Rs 15,218 per 10 grams and fell to a low of Rs 15,068 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed Rs 247 (1%) higher at Rs 24,492/Kg. Prices opened at Rs 24,201/kg and rose to a high of Rs 24,596/Kg during the day's trading.
Copper continues to go down continues
Depressed US stocks weigh on red metal
Copper prices continued to register fall at Comex and LME on Tuesday, 01 September, 2009. Drop in US stocks once again renewed concerns about the global economic recovery thereby pushing red metal prices lower on demand concerns.
At USA, copper futures for December delivery fell 0.8 cents (0.3%) to 2.8185 a pound. Last week, copper ended higher by 2%. Copper ended August, 2009, higher by 7%.
On the London Metal Exchange, copper for delivery in three months ended lower by $275 (4.2%) at $6,200 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
After August, it was the eighth straight monthly gain for copper. Prices gained 23% in the second quarter. On a year to date basis, prices are higher by 89%.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
In the currency market on Tuesday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended rose by 0.6%.
On Wall Street, stocks were solidly lower as the financial sector bore the brunt of bearish analyst comments and investors' concerns about a market correction that could last well into fall.
Among economic reports expected on Tuesday, The Institute for Supply Management reported on Tuesday, 01 September, 2009 that its index rose to 52.9% in August above the 50.5% expected. It was higher than the 48.9% in July. It's the highest reading since June 2007. Activity at the nation's manufacturing firms expanded for the first time in 19 months.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
At the MCX, copper for November delivery closed at Rs 305.45/Kg. The closing price was Rs 1.7/Kg (0.55%) lower than previous closing price. Prices rose to a high of Rs 313.2/ Kg and fell to a low of Rs 304/Kg during the day's trading.
Among other metals traded in the LME on Tuesday, lead fell 2.2% to $2,060 a ton and zinc fell 1.9% to end at $1,835 a ton. Nickel fell 1.4% to end at $18,760. Aluminium fell 1% to end at $1,881 a ton.
Jindal SAW
We recommend a sell in Jindal Saw from a short-term perspective. It is apparent from the charts that the stock was on a medium-term uptrend from its July low of Rs 318 to August peak of Rs 591. The stock breached its medium-term uptrend-line last week and has been on a short-term downtrend. The daily price rate of change indicator is displaying negative divergence and has entered the negative territory indicating selling interest. The daily relative strength index has entered the neutral region and weekly RSI is slipping from the overbought territory. The daily moving average convergence and divergence is signalling a sell. We are bearish on the stock from a short-term perspective. We anticipate the stock’s decline to prolong until it hits our price target of Rs 480. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 559.
via BL
Daily News Roundup - Sep 2 2009
Reliance Industries plans to foray into the global pipeline construction business with a bid for building Rs30bn worth of oil and gas pipeline in Mexico. (BS)
IL&FS has picked up significant minority stake in Reliance Industries promoted SEZ project in Haryana. (ET)
Government tells Supreme Court that the rights and obligations of NTPC and RNRL are different with respect to supply of gas from KG Basin by Reliance Industries. (ET)
South African government gave its in principal approval to the US$23bn cash and share swap deal being discussed between Bharti Airtel and MTN. (FE)
US bankruptcy court rejects Sterlite Industries bid to acquire Asarco and recommended rival Grupo Mexico. (ET)
Indian IT majors, Infosys, TCS and Wipro, apart from MNC rivals are bidding for US$6.5bn Belgian outsourcing deals from AXA, Dexa Bank, UCB and Allianz. (ET)
IOC may lose Rs250bn in revenues this fiscal on selling fuel below imported cost. (ET)
M&M is revamping its two wheeler business and plans to stop using Kinetic brand name. (ET)
CESC’s acquisition of a controlling 50.1% stake in Dhariwal Infrastructure for Rs2bn, allowing it to expand capacity faster, has been completed. (BS)
Ranbaxy, Hetero Drugs and Strides Arcolabs have together bagged order to supply 9.2mn capsules of generic or low priced version of swine flu drug Tamiflu. (ET)
Ranbaxy will market Daiichi Sankyo’s osteroporosis drug Evista in Romania through its subsidiary Terapia Ranbaxy. (ET)
Bharati Shipyard and ABG Shipyard bid to control Great Offshore hit a stumbling block as SEBI is yet to give its statutory approval for the open offer process. (BL)
Government allows GlaxoSmithKline to do quick experiments of its swine flu vaccine on Indians. (ET)
Maytas acquisition to cost IL&FS Rs3.3bn. (BS)
IL&FS, the new owners of Maytas Infrastructure, say the company will take one year to become financially stable after which they will look at raising capital through private placement. (ET)
Tata Tea is undergoing a strategic re-organization of its business to emerge as a global beverages leader. (ET)
Kalpataru Power Transmission has bagged orders worth Rs14bn from Maharashtra State Electricity Transmission Company and North Eastern Transmission. (ET)
NIIT Technologies is set to increase focus on non-linear business strategy. (ET)
TTSL has replaced the one-minute pulse rate with a flat charge for both local and STD calls for its prepaid CDMA customers. (FE)
HCC bagged an order worth Rs2.8bn for the construction of a hydel project in Arunachal Pradesh. (FE)
Nagarjuna Construction secured two orders valued at Rs4.8bn. (BL)
Parsvnath Developers received the Letter of Intent for grant of licence for developing 118 acres of Integrated Township in Rohtak, Haryana. (BL)
Bombay Rayon Fashion plans to raise upto Rs5bn from domestic and international markets. (FE)
Pipavav Shipyard which plans to raise Rs5.5bn through an IPO is likely to enter the capital market by September 16. (FE)
Akruti City plans to raise Rs5bn through an issue of fresh shares to private players and the issue will open on September 3. (FE)
Bank of Baroda sets up subsidiary in New Zealand. (FE)
Carborundum Universal has signed a ‘division agreement’ with its joint venture partner China Metallurgical Geology Burea (CMGB) for restructuring the JV (Jingri) in China. (BS)
Modi Tyres announced its technical and brand partnership with Germany’s Continental AG, one of the largest tyre makers in the world for heavy commercial vehicle tyres.(BL)
SEBI bans Austral Coke and Projects from raising further capital for allegedly falsifying accounts of over Rs10bn. (ET)
Economy Snippets
Planning commission says that India’s economic growth will speed up from Q4 onwards to reach 9% levels in two years. (ET)
Planning Commission expressed its concern over high generation cost, as well as over 30% distribution losses in the power sector. (BS)
India’s imports fell 37% in July, outpacing 28% fall in exports. (ET)
India’s exports dropped 28.4% in July 2% higher than the earlier estimate to US$13.6bn from US$19bn in the same month last year. (BS)
The Ministry of Shipping plans to award 28 projects worth Rs202bn in 2009-10. (BS)
Transportation of essential items including foodgrains, edible oil, sugar, salt, fruits and vegetables, fertilizers and petroleum products through railways and waterways will not face service tax. (ET)
India plans to import a third of its sugar demand next year as draught in major states threaten can yield. (ET)
Planning commission indicated that the country will miss its XIth plan power capacity addition target of 78.7GW but will be able to add 60GW. (FE)
India’s gold imports in August fell by 85% from a year earlier due to high prices and weak monsoon. (FE)
Mills have contracted more than two-thirds of their raw sugar import requirements for the ensuing 2009-10 season (October-September). (BL)
RBI is mulling “non-rate” policy measures to rein-in rising food prices. (BL)
Bulls hope to rise later!
Our greatest glory is not in never failing, but in rising up every time we fail.
The promise of more glory for the bulls post 4700 levels on the Nifty has failed for now. The sell-off was mostly led by a slide in global markets. The China factor too continues to play spoilsport, though that market is bucking the global freefall today. Other Asian markets are in the red, taking their cues from overnight losses on Wall Street and Europe.
Our market too is set to open lower, keeping in sync with the world. Tuesday saw a turnaround and then a tumble, which came on higher volumes. The usual rumors of basket selling and some fund going bust did the rounds as the selling intensified.
We also had disappointing reports on manufacturing PMI and exports. Monsoon has been weak and could have an adverse fallout on the overall economic activity. The Government is trying it best to keep the mood of the nation upbeat by projecting a rebound from the fourth quarter. The fact is growth is set to be lower than last fiscal, and a turnaround will be painfully slow. The market could turnaround faster!
FIIs were net sellers at Rs6.36bn in the cash segment on Tuesday on a provisional basis while the local funds pumped in Rs3.67bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs11.37bn. On Monday, FIIs were net sellers at Rs862mn in the cash segment.
US stocks tumbled on Tuesday, as concern that banks will post more losses overshadowed positive reports on manufacturing and housing that topped economist estimates. Investors pulled back from the recent advance at the start of what is typically a rough month for equities on Wall Street, betting that the six-month rally has raced ahead of economic and corporate fundamentals.
One market observer said that he wouldn't be surprised if the S&P 500 moved back to the 880 level before a fresh move back up. A drop to the 880 level would constitute a slide of about 12% from the current levels.
The Dow Jones Industrial Average lost 186 points, or almost 2%, to 9,310.60. The S&P 500 index fell 23 points, or 2.2%, to 998.04. The Nasdaq Composite index fell 40 points, or 2%, to 1,968.89.
The Chicago Board Options Exchange Volatility Index or VIX closed at the highest level since July 9. The benchmark index for US stock options increased 12% to 29.15. The gauge, which measures the cost of using options as insurance against declines in the S&P 500, reached a record of 80.86 in November. The index is sill above the average over its 19-year history of 20.
September is typically the biggest percentage loser of the month for the Dow, S&P 500 and Nasdaq, according to the "Stock Trader's Almanac.
Stocks have essentially been on the rise since March. The major gauges ended last week at the highest levels in 9 to 10 months. Financial shares took a beating on Tuesday after enjoying a nice ride through the late summer.
The Institute for Supply Management's (ISM) manufacturing index for August showed growth in the sector for the first time since January 2008. The index rose to 52.9 from 48.9 previously. Economists thought it would rise to 50.5.
Pending home sales rose for the sixth straight month, jumping 3.2% in July, to the highest point in nearly two years, according to a report from the National Association of Realtors. The index rose 3.6% in June. Economists thought sales would rise 1.5% in July.
Construction spending fell 0.2% in July versus forecasts for an unchanged reading. Spending rose a revised 0.1% in June.
Many of the summer's big bank sector winners led the declines Tuesday. The KBW Bank index fell 5.8% after rising 20% over the summer.
US light crude oil for October delivery fell $1.91 to settle at $68.05 a barrel on the New York Mercantile Exchange. Oil prices have been slipping since hitting a ten-month high just below $75 a barrel late last month. The decline in oil prices dragged on heavily-weighted energy stocks.
The government's popular Cash for Clunkers program gave a boost to sales in August, major automakers said. Although a plunge in sales in the last week of the month, following the program's end, suggests the impact will not be far reaching.
In August, Ford Motor reported that sales jumped 17% versus a year ago, its best monthly gain in 4 years. However, the advance was short of expectations for a rise of 22%, according to analysts.
Toyota, which had the most Clunker sales of any automaker, said August sales rose 6%, its first year-over-year gain in 16 months. General Motors (GM) and Chrysler both reported year-over-year declines in August on sales that improved from July.
eBay said it will sell a large stake in its Skype Internet phone business to a group of investors for $2.75 billion.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.37% from 3.40% late on Monday.
COMEX gold for December delivery rose $3.50 to settle at $957 an ounce.
In currency trading, the dollar gained versus the euro and the Japanese yen.
Two readings on the labor market are due Wednesday in the lead up to Friday's big August jobs report.
A July reading on factory orders is also due in the morning from the Commerce Department. Other reports include the minutes from the last Federal Reserve policy meeting, the weekly crude oil inventories report and the July reading on factory orders.
European shares declined with banks and metal stocks among the losers as investors picked up on some disappointing economic news.
After rising nearly 5% in August, the pan-European Dow Jones Stoxx 600 index pared some of those gains, falling 1.8% to 231.82 on Tuesday.
At the regional level, Germany's DAX index lost 2.5% to 5,327.29, the UK's FTSE 100 index fell 1.8% to 4,819.70 and the French CAC-40 index sank 1.9% to 3,583.44.
It was the second straight trading session where bears had an upper hand. In the early morning trades it looked like the bulls were back with a vengeance and a turnaround was on the cards as the NSE Nifty surged past the 4730 levels. However, as strong as before, the crucial technical level again played a spoil sport. From there on, the market succumbed to the selling pressure and nose-dived in the second half led by heavy offloading seen in the Realty, Metals and Power stocks. However, better than expected monthly sales numbers kept the Auto stocks in demand accompanied with some buying in the IT stocks. Mondays sell-off was led more by the foreign institutions and was restricted to the large caps. The broader market managed to hold its own yesterday. However, today even the small- and mid-cap stocks were under the bear attack. The BSE Sensex lost by 115 points or 0.8% at 15,551 after touching a high of 15,923 and a low of 15,475. The index opened at 15,691 against the previous close of 15,666. The NSE Nifty fell by 36 points to shut shop at 4,625. In Asia, the Nikkei in Japan gained by 0.4% at 10,530 while Australia's S&P/ASX ended higher by 0.8% at 4,514. The Hang Seng index in Hong Kong was up 0.8% at 19,872. Shanghai index in China was up 0.6% at 2,683. In Europe, stocks were trading in the red. The FTSE in the UK was down 1.1%. The DAX in Germany was down 1.5% and the CAC 40 index in France was down 0.8%. Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, shedding 3.5%, followed by the Metal index that was down 2.1%. The BSE Capital Goods index down 2% and the BSE Power index was down 1.7%. Even the BSE Mid-Cap index lost 1.5% and the BSE Small-Cap index fell by 1.5%. Among the 30-components of Sensex, 23 stocks ended in the red and 7 ended in the positive terrain. Among the major losers were ACC, Sterlite, HDFC, BHEL, ONGC, JP Associates and DLF. On the other hand, Maruti, Tata Motors, Hero Honda, RCom, Wipro and HUL were among the major gainers. Outside the frontline indices, the big losers in the broader market were GMDC, Indiabulls Real Estate, Godrej Industries, IFCI, Jai Corp and GE Shipping. On the other hand, gainers included P&B, Dabur India, Mphasis, Canara Bank and Renuka Sugar. India's merchandise exports fell 28.4% to US$13.6bn in July and imports declined 37.1% to US$19.6bn, resulting in a trade deficit of US$6bn for the month from US$12.15bn in the same month a year earlier, data released by the Commerce Ministry showed on Tuesday. In Indian Rupee terms, exports in July were down 19% over the year-ago period while imports slid 28.8% in Rupee terms. Shares of NHPC ended at Rs36.75 almost flat. The stock got listed at Rs37 on the NSE as against its issue price of Rs36. The stock hit an intra-day high of Rs42 and a low of Rs36.60. Total traded volumes stood at 19.3mn shares. The company’s IPO was subscribed over 23 times. NHPC raised Rs60bn through its IPO, which closed on August 12. It had come out with 1.68bn shares. A third of the NHPC's stake is being held by the Government, which is the sole promoter of the company. NHPC would use the IPO proceeds to part fund investments in 11 projects that are under construction. The new projects are likely to be commissioned by 2012. It 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 currently has an installed capacity of 4,815 MW. Shares of Maruti Suzuki accelerated by 7.5% at Rs1545 after the company announced that it sold a total of 84, 808 vehicles in August 2009, staging a growth of 41.6% in the month. This includes exports of 14,847 units, the highest ever monthly export in the company's history. The company had sold a total of 59, 908 vehicles in August 2008 Shares of TVS Motors shot up by over 4% to Rs50.25 after the company announced that it posted a 11% growth in August 2009. The company registered total two wheeler sales of 126,842 units against 114,321 units in the corresponding period of the previous year. The company has thus achieved a cumulative sales growth of 5% for the period April to August 2009 with cumulative growth of 10% in domestic sales. Domestic sales of the company clocked 20% growth registering sales of 115,095 units in August 2009 as against 96,238 units in the corresponding month of the previous year, with motorcycles contributing 12% growth and scooters factoring in a growth of 13%. Shares of M&M announced its domestic auto sales for the month of August 2009 stand at 21410 units, as against 18322 units in August 2008, an increase of 16.9%. Total UV sales in August 2009 which includes the Scorpio, the XYLO, the Bolero and Pick-Ups stands at 16631 as against sales of 11731 in August 2008, which is a growth of 41.8%. The stock ended lower by 1.5% to Rs847, it opened at Rs860 and made an intra-day high of Rs905 and a low of Rs824. Total traded volumes stood at 0.45mn shares. Shares of Hero Honda gained 1.5% to end at Rs1534 after the company’s despatch sales for the month of August’09 recording an all-time high of over four lakh units. For the first time ever, the company has recorded more than four lakh despatch sales in a single month, selling 415,137 units of two-wheelers in August’09. The stock opened at Rs1522 and made an intra-day high of Rs1566 and a low of Rs1504. Total traded volumes stood at 0.15mn shares. Shares of Britannia Industries gained 1.5% to Rs1672 after reports stated that the company bought out partners in its west Asian ventures. Britannia acquired 30% stake in Strategic Food International Co LLC, Dubai making it a wholly-owned indirect subsidiary of the company. It has also purchased the residual 34.54% stake in Al Sallan Food Industries, Oman. The stock opened at Rs1690 and made an intra-day high of Rs1764 and a low of Rs1669. Total traded volumes stood at 4,000 shares. Shares of Unity Infraprojects erased early gains and ended down by 1% to Rs368 after the company won a Rs3.25bn order for a pipeline project from the Municipal Corporation of Greater Mumbai. The order is scheduled to be completed in 45 months. The stock opened at Rs383 and made an intra-day high of Rs390 and a low of Rs361. Total traded volumes stood at 0.1mn shares. Shares of Orbit Corp lost ground and slipped by 3% to Rs185. Blackstone Asia Advisors LLC’s India Fund Inc. acquired 0.42mn shares of the company. Blackstone’s acquired ~0.8% of the company’s equity at an average price of Rs188.6 per share on the NSE on Monday. The stock opened at Rs193 and made an intra-day high of Rs196 and a low of Rs183. Total traded volumes stood at 0.57mn shares. Shares of Berger Paints were locked at 20% upper circuit at Rs65.15 as more than 12 times the average daily volume of shares during the past three months changed hands. The stock has witnessed its steepest upsurge since December 2007. More than 2.6mn shares changed hands, compared with the average daily volume of about 208,000 during the past three months.
Breakout likely this week
The Nifty fell by almost 3 per cent from today’s high on a weak opening for European markets and lower Dow futures. Foreign and domestic institutional investors triggered the fall by booking profit in HDFC, HDFC Bank and ONGC. The index, however, maintained its support of 4,600 and closed at 4,625, indicating lower-level buying by bull operators.
Nifty September futures closed on a par with the spot, indicating short-covering at lower levels. It added an open interest (OI) of 2.28 million shares out of an intraday position of 3.44 million shares, suggesting that some traders have bought futures to build long positions.
According to Gautam Shah, technical analyst at JM Financial, the daily moving average was providing support to the Sensex in the 15,300-15,500 zone. That apart, pattern and trendline studies were giving support to the Sensex at 15,300 and the Nifty at 4,580, something crucial for the indices, Shah said. He expected a big-bang breakout above the recent high anytime later this week.
Options traders were seen building significant positions at 4,700 and 4,800 strike calls. These calls together added an OI of 2.55 million shares, and the Bloomberg data on intraday buy and sell volumes suggested that the build-up was mostly long. Further, 4,900 and 5,000 calls witnessed change of hands and also build-up of long positions. This means, traders who expect a breakout above 4,730 in the near future are building long positions.
The 4,600 put option today continued to add fresh OI through sell-side trade, indicating that the index might not close below 4,600 in the near future. The 4,700 call too added OI in the last couple of days through buy-side trade, indicating hedging of long positions in the Nifty futures.
via Business Standard
Tata Motors September 2009 futures at a huge discount
Turnover surges
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.
Tata Motors September 2009 futures were at huge discount at 501.95 compared to the spot closing of 516.
Suzlon Energy September 2009 futures were near spot price at 95.10 compared to the spot closing of 95.25.
Reliance Industries September 2009 futures were at premium at 1985.10 compared to the spot closing of 1980.85.
In the cash market, the S&P CNX Nifty declined 36.75 points or 0.79% at 4625.35.
Pipavav Shipyard plans to raise over Rs 550 crore through IPO
To part-fund construction of facilities for shipbuilding and ship repair
Pipavav Shipyard reportedly plans to raise over Rs 550-crore through an initial public offer which is likely to open on 16 September 2009.
The IPO would consist of 8.54 crore equity shares of Rs 10 each and the proceeds would be used to part-fund construction of facilities for shipbuilding and ship repair, reports suggested. The proceeds would also allow the company to enter into the offshore business used in the exploration and construction of oil & gas companies.
Promoters are likely to dilute around 10-12% stake through the public issue.
Pipavav Shipyard, a shipbuilding and repair facility, is co-owned by SKIL Infrastructure and Punj Lloyd and also counts Singapore's Sembcorp Marine among its stakeholders.
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