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Thursday, September 03, 2009
Parsvnath Developers gains on plan to trim debt
Parsvnath Developers rose 2.48% to Rs 120 at 15:20 IST on reports the company plans to sell as much as $100 million of shares and a stake in a real estate project.
Meanwhile, the BSE Sensex was down 104 points, or 0.67%, to 15385.29.
On BSE, 2.61 lakh shares were traded in the counter as against an average daily volume of 7.58 lakh shares in the past one quarter.
The stock hit a high of Rs 121.60 and a low of Rs 118.20 so far during the day. The stock had hit a 52-week high of Rs 130.30 on 31August 2009 and a 52-week low of Rs 30.55 on 23 March 2009.
The stock had underperformed the market over the past one month till 2 September 2009, falling 3.14% as compared to the Sensex 1.29% decline. It outperformed the market in past one quarter, gaining 16.63% as against 3.98% rise in the Sensex.
The mid-cap real estate developer has an equity capital of Rs 184.70 crore. Face value per share is Rs 10.
The current price of Rs 120 discounts the company's Q1 June 2009 annualised EPS of Rs 3.02, by a PE multiple of 39.73.
Parsvnath Developers's chairman Pradeep Jain was quoted by media as saying that the company aims to sell shares to institutional investors by the end of October 2009, and a stake in a housing project this month to a private equity fund. Mr Jain, however, did not provide additional details on the project stake, or the amount to be raised.
In June this year, the company is reported to have got Rs 90 crore from private equity firm Red Fort Capital for a stake in a New Delhi housing project.
According to reports, Parsvnath, which expects to get about Rs 5000 crore from sale of homes over 24 to 30 months, aims to trim its debt to Rs 500 crore by March 2009. As of 30 June 2009, the company's debt stood at Rs 1700 crore, due for repayment by March 2011.
Parsvnath Developers' net profit fell 80.5% to Rs 13.93 crore on a 70.6% decline in sales to Rs 107.26 crore in Q1 June 2009 over Q1 June 2008.
Parsvnath Developers is engaged in developing real estate. It includes township development, construction of retail shopping malls, hospitals, hotels and clubs.
Promoters have pledged 10.36 crore shares or 56.12% stake of the company. Total promoter shareholding in the company is 80.33% (as on 30 June 2009).
Post Session Commentary - Sep 3 2009
Domestic market renounced all its’ gains to conclude its sea-saw movement on negative note after a high volatile session. The benchmark indices were on upbeat mood during early and afternoon trade on firm cues from Asian markets. In addition, positive US index futures also supported the sentiments. However, market exhibited volatility and pared gains during final trading hours on profit booking. Fluctuation in European stocks also added to instability, ahead of the European Central Bank’s meeting on interest rates. Meanwhile, India’s Inflation remained in negative for the 12th successive week, as it stood at -0.21% for the week ended 22nd Aug 2009, as compared to -0.95% for the previous week 15th August 2009. The BSE Sensex ended around 15,400 level and NSE Nifty closed below 4,600 mark.
The market opened significantly higher tracking positive cues from the Chinese markets. However, the US stock markets closed lower on Wednesday making a fourth straight day fall on the back of some disappointing economic data. Market struggled to hold on to even the smallest gains and traded in a relatively narrow range with low volume. ADP Employment Change Report for August revealed more job losses than what it was expected and factory orders for July went up, but were below expectation. Meanwhile, Indian benchmark indices turned volatile and slipped into red soon after start. However, market managed to gain ground further on some buying in key stocks and continued to trade in range bound manner. During last trading hours, market once again slipped into red and ended the day on negative note. From the sectoral front, Oil & Gas, Pharma, Capital Goods, Auto, Power and FMCG stocks contributed to most of the selling pressure. However, Consumer Durable, Metal and IT stocks were in limelight as witnessed most of the buying from these baskets. BSE Midcap and Smallcap stocks also observed buying during the trading.
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 1402 stocks closed in red while 1350 stocks closed in green and 93 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 69.13 points at 15,398.33 and NSE Nifty ended down by 14.80 points at 4,593.55. BSE Mid Caps and Small Caps closed with gains of 12.77 and 48.80 points at 5,770.80 and 6,917.82 respectively. The BSE Sensex touched intraday high of 15,598.18 and intraday low of 15,356.72.
Losers from the BSE Sensex pack are Reliance (2.01%), M&M Ltd (1.65%), Bharti Airtel (1.77%), Tata Motors (1.62%), Tata Power (1.34%), ONGC Ltd (1.24%), L&T Ltd (1.14%), ACC Ltd (1.10%), Hindalco (0.92%), Herohonda Motors (0.77%), NTPC Ltd (0.72%) and Wipro Ltd (0.71%).
Gainers from the BSE Sensex pack are RCom (5.31%), HUL (2.01%), Sterlite Industries (1.64%), Infosys Tech (1.06%), Tata Steel (1%), SBI (0.68%) and DLF Ltd (0.25%).
Inflation remained in negative for the 12th successive week, as Inflation for the week ended 22nd Aug 2009, stood at -0.21% as compared to -0.95% for the previous week 15th August 2009 and 12.76% during the corresponding week of the previous year. The Wholesale Price Index (WPI) for ''All Commodities'' for the week ended August 22, 2009 rose by 0.8% to 240.7 from 238.8 for the previous week. However, the wholesale price index for all commodities, used to measure the inflation, was up 0.8% at 240.7 on a week-on-week basis. The primary articles index was 0.7% higher and the prices of manufacturing products also rose 0.5%. Besides, the prices of fuels also jumped 1.5% on a week-on-week basis.
On the global markets front, the Asian markets that opened before the Indian market, ended higher as Chinese stocks jumped sharply higher and helped offset worries that rising U.S. job losses will wreck the global economic recovery. 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.
European markets, which opened after the Indian market, are trading mixed before the European Central Bank’s meeting on interest rates. In Frankfurt, DAX index is trading up by 1.93 points at 5,321.77 and in London FTSE 100 is trading down 0.42 points at 4,817.13.
The BSE Oil & Gas index closed lower by (1.12%) or 108.87 points at 9,575.10. Losers are Reliance (2.01%), Reliance Pet (1.64%), ONGC Ltd (1.24%), RNRL (1.10%) and Essar Oil Ltd (0.78%).
The BSE Pharma index lost (0.73%) or 28.13 points at 3,829.64. Losers are Aurobindo Pharma (2.75%), Ranbaxy Lab (2.31%), Cipla Ltd (1.87%), Dr Reddy’s Lab (1.85%) and Dishman Pharma (1.44%).
The BSE Capital Goods index dropped by (0.58%) or 73.85 points at 12,698.22. Losers are BEML Ltd (2.70%), Siemens Ltd (1.56%), Gammon Indi (1.54%), L&T Ltd (1.14%) and Bharat Bijli (1.13%).
The BSE Auto index decreased by (0.53%) or 31.64 points 5,908.94. Losers are MRF Ltd (2.16%), M&M Ltd (1.95%), Tata Motors (1.62%), Exide Indus (1.04%) and Herohonda Motors (0.77%).
The BSE Consumer Durable index gained by (0.75%) or 24.52 points at 3,280.99 as Rajesh Export (8.30%), Videocn Ind (0.96%), Titan Ind (0.16%) and Gitnajali GE (0.04%) ended in green.
The BSE Metal index closed up by (0.98%) or 41.08 points at 4,231.3. Main gainers are Aptech Ltd (6.67%), Oracle Fin (5.21%), HCL Tech (3.65%), Rolta Ind (1.31%) and TCS Ltd (1.19%).
Gwalior Chemical Industries Ltd plunged 3.27% after Morgan Stanley Mauritius Company sold a total of 3.89 lakh shares of the company on the BSE and the NSE yesterday.
Bharat Heavy Electricals Limited (BHEL) dropped marginally by 0.21%. The company is planning to invest nearly Rs 2,000 crore to set up a 250 Mw solar photovoltaic production facility for processing silicon wafers, solar cells and PV modules in a joint venture with Bharat Electronics Limited (BEL). The stock is now trading higher by (0.37%) at Rs.2,208.90.
Golden Tobacco Ltd zoomed 4.96% on reports the company is exploring the possibility of signing an agreement with Godrej Properties for co-development of a property located in the Mumbai suburbs.
MTNL gained 0.21% on reports the company has submitted an expression of interest to buy a 75% stake in Nigerian Telecommunications.
Rama Paper Mills Ltd jumped 9.97% after the company started commercial production at one of its unit, which has raised the production capacity to 60,000 tons per annum (TPA) from 44,000 TPA.
Bajaj Auto Ltd surged 3.04% after the company reported a 6% rise in total vehicle sales to 2.13 lakh units in Aug’09 over Aug’08.
BSE Bulk Deals to Watch - Sep 3 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
3/9/2009 532212 ARCHIES LTD SETU SECURITIES PVT LTD B 88421 122.41
3/9/2009 532212 ARCHIES LTD TRANSGLOBAL SECURITIES LTD. B 55426 117.99
3/9/2009 532212 ARCHIES LTD SUNEETLAL B 38628 110.71
3/9/2009 532212 ARCHIES LTD ARCADIA SHARE & STOCK BROKERS PVT. LTD B 51654 122.39
3/9/2009 532212 ARCHIES LTD MATRIX EQUITRADE PVT. LTD. B 84275 117.22
3/9/2009 532212 ARCHIES LTD OPG SECURITIES P LTD B 202666 117.47
3/9/2009 532212 ARCHIES LTD ANKIT JAIN B 48024 117.73
3/9/2009 532212 ARCHIES LTD MANSUKH SECURITIES & FINANCE LTD B 58175 117.65
3/9/2009 532212 ARCHIES LTD Naman Securities & Finance Pvt. Ltd. B 48141 121.72
3/9/2009 532212 ARCHIES LTD JMP SECURITIES PVT LTD B 46660 121.53
3/9/2009 532212 ARCHIES LTD DYNAMIC STOCK BROKING INDIA PVT LTD B 49014 119.60
3/9/2009 532212 ARCHIES LTD A.A.DOSHI SHARE & STOCK BROKERS LTD B 60823 123.81
3/9/2009 532212 ARCHIES LTD BP FINTRADE PRIVATE LIMITED B 57862 120.25
3/9/2009 532212 ARCHIES LTD SETU SECURITIES PVT LTD S 96519 121.18
3/9/2009 532212 ARCHIES LTD TRANSGLOBAL SECURITIES LTD. S 55125 118.27
3/9/2009 532212 ARCHIES LTD SUNEETLAL S 38628 111.31
3/9/2009 532212 ARCHIES LTD ARCADIA SHARE & STOCK BROKERS PVT. LTD S 36291 118.63
3/9/2009 532212 ARCHIES LTD MATRIX EQUITRADE PVT. LTD. S 84275 117.39
3/9/2009 532212 ARCHIES LTD OPG SECURITIES P LTD S 202666 117.54
3/9/2009 532212 ARCHIES LTD ANKIT JAIN S 48024 117.89
3/9/2009 532212 ARCHIES LTD MANSUKH SECURITIES & FINANCE LTD S 58175 118.33
3/9/2009 532212 ARCHIES LTD Naman Securities & Finance Pvt. Ltd. S 45311 121.71
3/9/2009 532212 ARCHIES LTD JMP SECURITIES PVT LTD S 36660 120.83
3/9/2009 532212 ARCHIES LTD DYNAMIC STOCK BROKING INDIA PVT LTD S 43513 119.33
3/9/2009 532212 ARCHIES LTD A.A.DOSHI SHARE & STOCK BROKERS LTD S 60823 123.84
3/9/2009 532212 ARCHIES LTD BP FINTRADE PRIVATE LIMITED S 61850 119.78
3/9/2009 533095 BENGLA& ASM ACCURATE FINMAN SERVICES LTD B 59931 136.50
3/9/2009 533095 BENGLA& ASM BMF INVESTMENTS LTD S 59931 136.50
3/9/2009 532329 DANLAW TECHN M/S.CHANDRAVADAN J. DALAL B 25000 12.25
3/9/2009 532329 DANLAW TECHN ANITADEEPAKDALAL S 25000 12.25
3/9/2009 517973 DMC INTER ABHINAY KAPOOR B 75000 10.07
3/9/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 47345 10.21
3/9/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD B 23010 10.17
3/9/2009 517973 DMC INTER RUCHI KAPOOR S 40000 10.20
3/9/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD S 67948 10.12
3/9/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD S 31200 10.06
3/9/2009 517973 DMC INTER SPG FINVEST PVT LTD S 26000 10.13
3/9/2009 532022 FILAT FASH VIPUL HIRALAL SHAH B 34561 85.17
3/9/2009 532022 FILAT FASH PATHIKNAYANBHAISHAH B 74048 84.19
3/9/2009 532022 FILAT FASH AYODHYAPATI INVESTMENT PVT LTD B 94913 84.75
3/9/2009 532022 FILAT FASH RAJESH RAMCHANDRA GUPTA B 40700 85.06
3/9/2009 532022 FILAT FASH KANAK STOCK BROKERS PVT LTD B 215000 85.05
3/9/2009 532022 FILAT FASH AADESH COMMODITIES PRIVATE LTD B 209871 85.20
3/9/2009 532022 FILAT FASH MAMTA BHANDARI S 32770 85.15
3/9/2009 532022 FILAT FASH PATHIKNAYANBHAISHAH S 80048 85.17
3/9/2009 532022 FILAT FASH AYODHYAPATI INVESTMENT PVT LTD S 92179 84.83
3/9/2009 532022 FILAT FASH AADESH COMMODITIES PRIVATE LTD S 210000 85.00
3/9/2009 511682 IFL PRMOTER BANSI CHETAN SHAH B 20000 8.86
3/9/2009 511682 IFL PRMOTER RUCHI KAPOOR S 19000 8.86
3/9/2009 523467 JAI MATA GLA J V STOCK BROKING PRIVATE LIMITED B 45102 10.83
3/9/2009 523467 JAI MATA GLA BHAVIN Y MEHTA B 52959 10.79
3/9/2009 523467 JAI MATA GLA J V STOCK BROKING PRIVATE LIMITED S 15502 11.45
3/9/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 84749 10.81
3/9/2009 523467 JAI MATA GLA INDUSTRIAL DEVELOPMENT BANK OF INDIA S 24545 10.96
3/9/2009 523467 JAI MATA GLA BHAVIN Y MEHTA S 52954 10.81
3/9/2009 530479 KADVANI SECU AMIT SHANTILAL MEHTA B 31751 9.26
3/9/2009 530479 KADVANI SECU SUDHABEN AMRUTLAL GANDHI S 17402 9.27
3/9/2009 531633 LINCOLN PHAR ISHAN MARKETING PRIVATE LIMITED S 46000 36.66
3/9/2009 532998 LOTUS EYE SUBODHSAGAR SHARES & SERVICES PRIVATE LIMITED B 106050 36.30
3/9/2009 524138 MAHIN COMP KETAN SHAH B 23530 78.46
3/9/2009 512167 MATRA REALT RAJESH C R NAIR S 65000 9.20
3/9/2009 533080 MOLDTK PLA DHEERAJ KUMAR B 52532 33.17
3/9/2009 533080 MOLDTK PLA RELIANCE CAPITAL ASSET MANAGEMENT LTD. S 51863 33.02
3/9/2009 532986 NIRAJ CEMENT HITESH SHASHIKANT JHAVERI B 59431 80.60
3/9/2009 532986 NIRAJ CEMENT HITESH SHASHIKANT JHAVERI S 54230 80.12
3/9/2009 526801 PSL LIMITED CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED B 322857 163.95
3/9/2009 526801 PSL LIMITED MACQUARIE BANK LIMITED S 322857 163.95
3/9/2009 531374 SAAG RR INFR ANGEL INFIN PRIVATE LIMITED S 111639 27.72
3/9/2009 531312 SANRAA JMP SECURITIES PVT LTD B 3104675 0.92
3/9/2009 531312 SANRAA JMP SECURITIES PVT LTD S 3104675 0.92
3/9/2009 530459 VALSON IND PRATIK SHAILESH SHAH B 25000 37.31
3/9/2009 530459 VALSON IND MALKA NANDLAL MUTREJA S 24500 37.31
3/9/2009 532917 VARUN INDS HITESH SHASHIKANT JHAVERI B 163549 191.62
3/9/2009 532917 VARUN INDS HITESH SHASHIKANT JHAVERI S 199115 190.64
3/9/2009 530477 VIKRAM THERM KAPILABEN B PATEL S 15700 18.59
3/9/2009 532360 VINTAGE CARD MANOJ NARAYANDAS PARMAR B 3000 21.59
3/9/2009 532360 VINTAGE CARD SURINDER SINGH RAJPAL S 4000 21.16
3/9/2009 524576 VIVID IND DUKE PUBLISHERS PVT LTD S 25800 13.50
3/9/2009 511147 WALL STREE F TRANSWAYS COMBINES PRIVATE LIMITED B 4264045 52.01
3/9/2009 511147 WALL STREE F RELIANCE MONEY EXPRESS LIMITED S 4252055 52.00
3/9/2009 531249 WELL PACK PA PANDYA HARDIK M S 22536 187.46
NSE Bulk Deals to Watch - Sep 3 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
03-SEP-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,319328,1583.73,-
03-SEP-2009,ARCHIES,Archies Limited,BHAVIN Y MEHTA,BUY,86663,124.15,-
03-SEP-2009,ARCHIES,Archies Limited,BP FINTRADE PRIVATE LIMITED,BUY,124096,120.13,-
03-SEP-2009,ARCHIES,Archies Limited,DINESH MUNJAL(HUF),BUY,52980,119.28,-
03-SEP-2009,ARCHIES,Archies Limited,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,BUY,52826,122.28,-
03-SEP-2009,ARCHIES,Archies Limited,MANISH KUMAR ASHKARAN,BUY,37913,121.87,-
03-SEP-2009,ARCHIES,Archies Limited,MANSUKH SECURITIES & FINANCE LIMITED,BUY,97780,117.04,-
03-SEP-2009,ARCHIES,Archies Limited,MBL & COMPANY LTD.,BUY,132131,115.72,-
03-SEP-2009,ARCHIES,Archies Limited,MITHUN SECURITIES PVT. LTD.,BUY,70846,121.13,-
03-SEP-2009,ARCHIES,Archies Limited,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,58634,122.34,-
03-SEP-2009,ARCHIES,Archies Limited,NIKON FINLEASE PVT. LTD,BUY,47536,113.39,-
03-SEP-2009,ARCHIES,Archies Limited,OM INVESTMENTS,BUY,247339,118.26,-
03-SEP-2009,ARCHIES,Archies Limited,PRIYANK VIJAY HUF,BUY,51713,119.48,-
03-SEP-2009,ARCHIES,Archies Limited,SETU SECURITIES LTD,BUY,115271,124.03,-
03-SEP-2009,ARCHIES,Archies Limited,SMART EQUITY BROKERS PRIVATE LIMITED,BUY,90896,119.48,-
03-SEP-2009,ARCHIES,Archies Limited,SUNEET LAL,BUY,37165,111.53,-
03-SEP-2009,ARCHIES,Archies Limited,TEJAS JITENDRA SANGHVI,BUY,32646,120.63,-
03-SEP-2009,ARCHIES,Archies Limited,TRANSCHEM LIMITED,BUY,40000,123.66,-
03-SEP-2009,ARCHIES,Archies Limited,TRANSGLOBAL SECURITIES LTD.,BUY,58552,118.26,-
03-SEP-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,2695039,4.27,-
03-SEP-2009,RADICO,Radico Khaitan Limited,NOMURA FUNDS IRELAND PUBLIC LIMITED COMPANY NOMURA FUNDS IR,BUY,1500000,104.00,-
03-SEP-2009,SASKEN,Sasken Commu Techno Ltd,MANISH VRAJLAL SARVAIYA,BUY,189796,173.42,-
03-SEP-2009,VINCARDS,Vintage Cards & Creations,SURESH JAISWAL,BUY,3000,21.13,-
03-SEP-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,319328,1584.40,-
03-SEP-2009,ARCHIES,Archies Limited,BHAVIN Y MEHTA,SELL,86663,123.79,-
03-SEP-2009,ARCHIES,Archies Limited,BP FINTRADE PRIVATE LIMITED,SELL,130892,119.31,-
03-SEP-2009,ARCHIES,Archies Limited,DINESH MUNJAL(HUF),SELL,52980,119.59,-
03-SEP-2009,ARCHIES,Archies Limited,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,SELL,53326,118.38,-
03-SEP-2009,ARCHIES,Archies Limited,MANISH KUMAR ASHKARAN,SELL,37913,123.74,-
03-SEP-2009,ARCHIES,Archies Limited,MANSUKH SECURITIES & FINANCE LIMITED,SELL,97778,116.81,-
03-SEP-2009,ARCHIES,Archies Limited,MBL & COMPANY LTD.,SELL,132131,115.79,-
03-SEP-2009,ARCHIES,Archies Limited,MITHUN SECURITIES PVT. LTD.,SELL,70846,121.21,-
03-SEP-2009,ARCHIES,Archies Limited,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,69993,119.72,-
03-SEP-2009,ARCHIES,Archies Limited,NIKON FINLEASE PVT. LTD,SELL,47536,113.87,-
03-SEP-2009,ARCHIES,Archies Limited,OM INVESTMENTS,SELL,247339,118.44,-
03-SEP-2009,ARCHIES,Archies Limited,PRIYANK VIJAY HUF,SELL,46713,119.41,-
03-SEP-2009,ARCHIES,Archies Limited,SETU SECURITIES LTD,SELL,114002,123.55,-
03-SEP-2009,ARCHIES,Archies Limited,SMART EQUITY BROKERS PRIVATE LIMITED,SELL,90896,119.61,-
03-SEP-2009,ARCHIES,Archies Limited,SUNEET LAL,SELL,37165,110.94,-
03-SEP-2009,ARCHIES,Archies Limited,TEJAS JITENDRA SANGHVI,SELL,35645,119.53,-
03-SEP-2009,ARCHIES,Archies Limited,TRANSCHEM LIMITED,SELL,40000,121.89,-
03-SEP-2009,ARCHIES,Archies Limited,TRANSGLOBAL SECURITIES LTD.,SELL,58052,117.93,-
03-SEP-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,2338584,4.28,-
03-SEP-2009,GWALCHEM,Gwalior Chemical Industri,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,237000,96.77,-
03-SEP-2009,RADICO,Radico Khaitan Limited,KAUR AMARJIT,SELL,595978,104.02,-
03-SEP-2009,SASKEN,Sasken Commu Techno Ltd,MANISH VRAJLAL SARVAIYA,SELL,189796,172.73,-
Asian markets swing back to gains
Shanghai pull up regional activity as Hang Seng, Taiex follows while Sensex, Sydney retreats
Stock markets in Asian region were pulled up by Chinese stocks on Thursday, 3 September 2009, after a top securities regulator assured investors that the country's market was healthy and that there would be continued support for blue-chip companies.
On Wall Street, stocks closed in slightly negative territory after much indecision and little reaction to the latest Fed minutes and economic data. Wall Street instead looked ahead to the more highly anticipated unemployment report at the end of the week. The Dow Jones Industrial Average ultimately gave up 29.93 points, or 0.3%, to 9280.67, while the S&P 500 edged down 3.29 points, or 0.3%, to 994.75. The Nasdaq Composite shed 1.82 points, or 0.09%, to 1967.07.
On the economic front, ADP said that there were 298,000 jobs lost in the private sector in August, an improvement from the 360,000 in July. That report comes ahead of Friday's unemployment reading, the most anticipated data of the week.
Factory orders also fell short of expectations as the Department of Commerce said orders increased 1.3% in July, after a 0.9% increases the month prior. Meanwhile, the Department of Labor said productivity increased more than expected, by 6.6%, after a 6.4% increase the month prior.
In the commodity market, crude oil rose and traded near $69 a barrel in New York as Chinese equities advanced the most in six months, spurring speculation that the country’s economic growth will lead to a rebound in fuel consumption.
Crude oil for October delivery increased as much as $1.34, or 2%, to $69.39 a barrel on the New York Mercantile Exchange, and traded at $69.13 at 12:01 a.m. in London. Yesterday, the contract settled unchanged at $68.05, the first time this has happened since 24 November 2006.
Brent crude oil for October settlement traded at $68.24 a barrel, up 58 cents, on the London-based ICE Futures Europe exchange at 11:34 a.m. London time. Yesterday, the contract declined 7 cents to $67.66, the lowest settlement since 29 July 2009.
Gold climbed to three- month highs in London as a weakening dollar boosted demand for the precious metals as alternative investments. Gold for immediate-delivery bullion advanced as much as $6.40, or 0.7 percent, to $984.90 an ounce, the highest since June 3. It traded at $983.40 by 11 a.m. local time.
In the currency market, US dollar was dragged down by the sharp rally in Gold overnight and remains soft against major currencies. On the other hand, yen also retreats mildly following rebound in Asian stocks which saw Shanghai A shares rose an impressive 5.01%
The Japanese yen was stronger against major currencies as investors continued to trim dollar holdings after disappointing jobs report from US. The Japanese yen was quoted at 92.2 per greenback, down from Wednesday’s quote of 92.65 yen.
The Hong Kong dollar was trading at HK$ 7.7508 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
In Sydney trade, the Australian dollar rose after a solid rally in Chinese stocks supported demand for riskier currencies, in an otherwise featureless market. At the local close, the dollar was trading at $US0.8385, up from $US0.8333 on Wednesday. Against the yen, it climbed to 77.46 yen, from the day's low of 76.58, but unchanged from Wednesday.
In Wellington trade, the New Zealand dollar rose in afternoon trading to close near session highs as the Chinese stock market rebounded. By 5pm the NZ dollar was buying US67.50c, up from US67.27c at 8am, but little change from US67.54c at 5pm yesterday. The NZ dollar had dropped near US66.80c, its lowest level in a fortnight, in overnight trading on Wednesday but it was a different story today.
The South Korea won closed at 1,246 won to the U.S. dollar, up 3.9 won from Wednesday's close, as South Korean exporters dumped the greenback.
The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.8800, 0.0380 higher from Wednesday’s close of NT$32.9180.
Coming back in equities, Chinese stocks posted their biggest percentage gain since March, as metals and financial shares soared on speculation the government will act to support markets after a sell-off last month.
In Japan, shares market dropped following weak leads from markets across the globe yesterday prompted investors to take out money from cyclical sector. Meanwhile concerns about the US economic outlook following dismal jobs data and stronger yen fueling the decline. Dainippon Sumitomo Pharma outperformed in Tokyo after the company said it was in talks for the acquisition of an unnamed US firm. At the closing bell, the Nikkei 225 Stock Average index slipped 65.82 points, or 0.64% from Wednesday to 10,214.64, meanwhile the broader Topix slid 7.04 points, or 0.74%, to 942.77.
In Mainland China, share market endured gains for third consecutive day on hopes recent decline make stocks valuation attractive and as the securities regulator reassured investors it would promote the healthy development of capital markets. Banks and financials and properties surged following reports that lending by China's big four state-owned banks totaled 160 billion Yuan in August. Energy stocks rebounded as the China raised gasoline and diesel prices by 300 Yuan ($44.1) per ton, or 4% earlier this week.
At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, rose by 130.05 points, or 4.79% to 2,845.02, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, advanced 5.57% or 161.04 points, to 3,051.96.
On the economic front, the official China Securities Journal said Thursday new lending by China's big four state-owned banks totaled 160 billion Yuan ($23.4 billion) in August, slightly less than the roughly 165 billion Yuan lent in July by the top four banks.
In Hong Kong, benchmark index surged with broad based gains across the major sector, as investor elected to put money into the market after Chinese regulatory authority assured investors that it would provide the stable and healthy development of capital market. China related stocks led the rally on tracking gains in Shanghai and gold miners soared up after a precious metal bounced overnight. Metal stocks bounced back after Aluminum Corporation of China lifted its forecast for global aluminum consumption, and on optimism that the city’s economy might recover completely by mid-2010.
The Hang Seng Index surged 239.68 points, or 1.23%, to 19,761.68, while the Hang Seng China Enterprise added 236.82 points, or 2.12%, to 11,429.21.
In Australia, the shares market finished the session lower, after dancing in and out of the boundary as of weak lead from offshore market and weaker commodity prices. Financials dropped as very weak lead from the US peers. Property trusts stocks tumbled amid broad sell off compounded by global economy worries. Materials and resources were recouped early losses on bargain hunting, while oil related shares were in negative territory on a softer oil price.
At the closing bell, the benchmark S&P/ASX200 index dropped 8.60 points, or 0.19%, to 4,429.6, meanwhile the broader All Ordinaries erased 3.7 points, or 0.08%, to 4,432.9.
On the economic front, the Australian Bureau of Statistics found that the balance of trade was in a larger than expected A$1.556 billion deficit in July, seasonally adjusted. Exports were down A$283 million or 1% to A$20.041 billion, while imports climbed A$736 million or 4% to A$21.598 billion.
Meanwhile, the Australian Industry Group-Commonwealth Bank performance of services index (PSI) moved closer to a level of expansion in August. The PSI increased 3.9 index points to 48.
In New Zealand, the share market gained today but there was a dearth of corporate news to provide direction. The benchmark NZSX-50 index closed up 16.921 points, or 0.55%, at 3091.57. The NZX 15 increased 0.97% or 54.81 points to close at 5686.26.
In South Korea, stocks finished 0.02% higher after range-bound trading Thursday as investors hunted for bargains. The benchmark Korea Composite Stock Price Index (KOSPI) managed to add 0.37 points to 1,613.53 after moving in a narrow range.
In Singapore, stock market rose following strong performance of Shanghai and other Asian market. Investors chased for bargain hunting in major banks and blue chips stocks. The blue chip Straits Times Index advanced 28.43 points, or 1.11%, to 2,598.36.
In Taiwan, stock market traveled to five week high extending its September surge, with AU Optronics outperforming after the LCD Company said it was considering building a panel plant in China. The benchmark Taiex share index stretched its winning streak in fifth session as its finished the session higher by 64.88 points or 0.92% in a day, closing the day at 7104.65, highest closing since 28 July 2009 when market closed at 7142.63.
On the economic front, Mark Mobius, manager of Franklin Templeton Fund, warned that the Taiex index may be in for a 10-30% correction after having experienced a round of rally.
In a seminar sponsored by Franklin Securities Investment Consulting, Mobius, dubbed as godfather of emerging markets, though, stressed his confidence in the long-term outlook of the Taiwanese market, citing the optimistic reports by executives of major listed companies, including Cheng Shin Tire, Uni-President and TSMC (Taiwan Semiconductor Manufacturing Corporation), which he visited in the past several days since his arrival on 30 August 2009. He was especially upbeat on tech and domestic-consumption stocks, such as branded notebook PC, NB parts, and IC design.
In Philippines, the stock market closed marginally lower tracking the losses on Wall Street overnight. At the final bell, the benchmark index PSEi fell 0.17% or 4.90 points to 2,803.31, while the All Shares index tumbled 0.20% or 3.65 points to 1,790.02.
In India, the key benchmark indices slumped to hit fresh intraday day in late trade as index heavyweights lost ground. The BSE 30-share Sensex was down 69.13 points or 0.45% to 15,398.33. The S&P CNX Nifty was down 14.80 points or 0.32% to 4,593.55.
On the economic front, the wholesale price index (WPI) declined 0.21% in the year to 22 August 2009 compared to previous week's annual decline of 0.95%. The government revised upwards WPI for the week ended 27 June 2009 to a fall of 1% from an estimated decline of 1.55%.
Elsewhere, Malaysia's Kula Lumpur Composite index went up 0.48% or 5.65 points to 1173.66 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2322.25.
In other regional market, European shares edged higher for the first time in four sessions on Thursday, buoyed by gains for miners and chipmaker Infineon Technologies, although losses for drug makers kept a lid on the advance. On a regional level, the U.K. FTSE 100 index was trading higher at 4,825 i.e. 7.34 points or 0.15% high, the German DAX index added 0.3% or 14.76 points at 5,335, and the French CAC-40 index gained 0.2% or 8.58 points at 3,582.
Market extends losses for the fourth day in a row
The key benchmark indices extended losses for fourth straight trading sessions bucking firm global stocks on worries a surge in food prices may stoke inflationary pressures in the economy. Index heavyweights Reliance Industries and L&T lost ground. Another heavyweight ICICI Bank reversed intraday gains in choppy trade. The BSE 30-share Sensex lost 69.13 points or 0.45%, off close to 200 points from the day's high and up close to 40 points from the day's low.
Capital goods, auto, oil and gas and FMCG stocks fell. The market breadth, indicating the overall health of the market, was slightly positive, weakening from earlier strong breadth.
A bout of volatility was witnessed earlier in the day as the market recovered after falling into the red for a brief period following an initial surge triggered by firm Asian stocks. The market held positive zone amid range bound trade later. The Sensex once again slipped into the red for a short while in afternoon trade before regaining positive zone. The market weakened in late trade.
Analysts are concerned that a sharp surge in food prices in the past few days due to scanty rains may stoke inflationary pressures in the economy. Interest rates could rise on higher inflation which in turn may impact a nascent economic recovery and corporate profits.
The wholesale price index (WPI) declined 0.21% in the year to 22 August 2009 compared to previous week's annual decline of 0.95%, data released by the government at 12:00 IST today showed. The government revised upwards WPI for the week ended 27 June 2009 to a fall of 1% from an estimated decline of 1.55%.
On the positive side, a survey by HSBC on Thursday showed that the growth in services sector accelerated in August 2009, as a strong pipeline of new orders helped companies raise prices. The HSBC Markit Business Activity Index based on a survey of 400 firms rose to an 11-month peak of 54.9 in August from 54.7 in July. The index has been above 50, which separates expansion from contraction, for four months.
But a slowdown in the manufacturing sector and falling exports remains a cause for concern. The same survey had showed two days back that the growth in the manufacturing sector had slowed to a five-month low in 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, 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.
A good news is the revival of monsoon since mid-August 2009. India's monsoon rains were reportedly close to normal in the week to 2 September 2009, continuing the upturn in rainfall since mid-August. Rains for the week ended 26 August 2009 were 5% below normal, weather office data showed. Rainfall since the start of the monsoon season on 1 June was 25 percent below average a week ago.
Farm secretary T. Nanda Kumar on Wednesday 2 September 2009 said improved monsoon rains in recent days will boost crop prospects for rice and sugar cane. He said other crops would also gain.
European shares edged higher after moving between positive and negative zone ahead of a decision on interest rates by the European Central Bank's (ECB). Key benchmark indices in France, Germany and UK rose by between 0.36% to 0.55%. The ECB is expected to announce that it is keeping its key interest rate steady at 1%.
Chinese stocks led rally in Asian stocks on Thursday, 3 September 2009. The Shanghai Composite settled 4.79% higher on speculation regulators will adopt measures to boost the nation's equities following declines in the past month. The Xinhua News Agency reported that the China Securities Regulatory Commission would promote the stable and healthy development of the country's capital markets via measures such as strengthening the markets' infrastructure and ensuring the smooth operation of the Growth Enterprise Market when it is launched.
In other Asian stocks, key benchmark indices in Hong Kong, Singapore, South Korea and Taiwan rose by between 0.02% to 1.23%. But Japan's Nikkei 225 average lost 0.64%.
Trading in US index futures indicated Dow could rise 51 points at the opening bell today, 3 September 2009.
US markets fell for the fourth straight day on Wednesday, 2 September 2009, due to some disappointing economic data. The Dow Jones Industrial Average reported its fourth straight declined 29.93 points or 0.32% or to 9,280.67. The S&P 500 Index shed 3.29 points 0.33% to 994.75 and the Nasdaq Composite 1.82 points or 0.09% to 1,967.07.
The ADP employment change report showed private employers cut 298,000 jobs in August 2009. This was more than the 250,000 economists expected. Factory orders rose 1.3% in July. The pace was much slower than the 2.2% expected.
On the flip side, the Federal Reserve policy makers said they are confident the recession is ending.
The BSE 30-share Sensex fell 69.13 points or 0.45% to 15,398.33. The Sensex rose 130.72 points at the day's high of 15598.18 in early trade. The Sensex fell 110.74 points at the day's low of 15,356.72 in late trade.
The S&P CNX Nifty fell 14.80 points or 0.32% to 4,593.55. Nifty September 2009 futures were at 4580.50, at a discount of 13.05 points as compared to the spot closing of 4593.55.
BSE clocked a turnover of Rs 5104 crore, lower than Rs 5440.54 crore on Wednesday, 2 September 2009. Turnover on NSE's futures & options (F&O) segment declined to Rs 62,922.53 crore from Rs 63,487.76 crore on Wednesday, 2
The market breadth, indicating the overall health of the market, was positive, weakening from earlier strong breadth. On BSE, 1398 shares rose as compared with 1347 that fell. A total of 92 shares remained unchanged.
Among the 30-member Sensex pack, 21 rose while rest fell.
The BSE Sensex has lost 524.01 points or 3.29% in the last four 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 5751.02 points or 59.61% in calendar year 2009 as on 3 September 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7237.93 points or 88.69% as on 3 September 2009. FII inflow in calendar year 2009 totaled Rs 39321.36 crore (till 2 September 2009)
Coming back to today's trade, the BSE Mid-Cap index rose 0.22% and the BSE Small-Cap index rose 0.71%. Both the indices outperformed the Sensex.
The BSE Consumer Durables index (up 0.75%), the BSE Metal index (up 0.59%), the BSE IT index (up 0.49%), the BSE Teck index (up 0.31%), the BSE Bankex (up 0.17%), the BSE Realty index (up 0.17%), the BSE PSU index (down 0.16%), the BSE FMCG index (down 0.35%), the BSE Power index (down 0.44%), outperformed the Sensex.
The BSE Oil & Gas index (down 1.12%), the BSE Healthcare index (down 0.73%), the BSE Capital Goods index (down 0.58%), the BSE Auto index (down 0.53%), underperformed the Sensex.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 2.01% to Rs 1932.10. The stock hit a high of Rs 1987.30 and a low of Rs 1924.90. 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.
India's largest thermal power producer by sales NTPC fell 0.72% and RNRL fell 1.1%.
India's largest oil exploration firm by market capitalisation ONGC fell 1.24%. 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 oil traded below $70 a barrel level after a recent sharp slide. BPCL, Indian Oil Corporation and HPCL rose by between 0.53% to 2.58%. Oil prices have fallen after a recent rally. 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.
Some FMCG stocks fell on worries over scanty rains. FMCG firms derive substantial revenue from rural sector. ITC, Marico, United Spirits and Nestle India fell by between 0.23% to 1.71%.
Auto stocks fell on profit taking after recent gains triggered by healthy sales in August 2009. Indian largest tractor maker by sales Mahindra & Mahindra fell 1.95%. 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 fell 1.62%. 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.
Maruti Suzuki, India's top car maker by sales, fell 0.2%. 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.
India's largest motorbike maker by sales Hero Honda Motors fell 0.77%. The company's sales rose 36% in August 2009 over August 2008. But, TVS Motor company rose 1.09%. 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.
Bajaj Auto jumped 3.04% after the company reported a 6% rise in total vehicle sales to 2.13 lakh units in August 2009 over August 2008. The company announced sales figures during market hours on Wednesday
India's second largest listed cellular service provider by sales Reliance Communication surged 5.31% on reports its telecom tower unit may revive a plan to raise funds through an initial public offer.
India's largest mobile services provider by sales Bharti Airtel fell 1.77%. Bharti and South African telecom operator MTN have been in negotiations since 25 May 2009 on a $23 billion cash and share-swap deal aimed at an eventual full merger. The deadline for the talks has been extended twice, most recently the deadline was put back another month to 30 September 2009.
IT stocks rose on hopes of a recovery in the US economy. US is the biggest market for IT firms. India's second largest software services exporter Infosys Technologies rose 1.06% as its ADR rose 0.7% on Wednesday. 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 was flat at Rs 532.95 after a foreign brokerage raised its rating on the stock to 'overweight' from 'neutral'. The brokerage said the company is a 'solid defensive investment'.
India's third largest software services exporter Wipro fell 0.71% as its ADR fell 1.53% on Wednesday.
Realty stocks rose on reports prices in key regions like New Delhi-NCR (National Capital Region) and Mumbai have moved up 10-15% on gradual return of residential property buyers. DLF, Unitech, Omaxe, Phoenix Mills, Ackruti City rose by between 0.17% to 1.92%.
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.
Metal stocks rose on reports steel producers have increased the prices of flat steel products by Rs 1,000 to 1,500 a tonne or 3-5% in the domestic market.
India's largest public sector steel maker by sales Steel Authority of India rose 0.317% after company increased the prices of steel products by Rs 1,500 per tonne.
India's largest steel maker by sales Tata Steel rose 1% as company has increased prices by 3-4% in the domestic market. Its UK unit Corus, too, has increased prices of long products by 25-40 pounds sterling per tonne on improved demand.
Among other steel makers, JSW Steel, Jindal Saw, Bhushan Steel rose, by between 0.83% to 2.41%.
Hike in steel prices by the domestic steel producers will help improve their margins. Steel makers have hiked prices on the back of a robust demand in the domestic market from the automobile and construction sectors, and a jump in steel prices in the international market. Notably, steel prices in the international markets have moved up considerably since the last couple of months, and are higher by more than 30% since then, as the global steel outlook has improved.
India's largest copper maker by sales Sterlite Industries rose 1.64% on bargain hunting after the stock fell over 8% in the preceding two trading sessions. 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.
Bank stocks were mixed after inflation data. India's largest private sector bank by net profit ICICI Bank was flat at Rs 736. The stock came off the day's high of Rs 752. Its American depository receipt (ADR) rose 0.55% on Wednesday. The bank has launched a special offer for new home loan borrowers effective from 20 August 2009. Under this, interest rates for home loans upto Rs 20-lakh will now be at 8.75%. For loans between Rs 20-Rs 50 lakh, the new rates will be 9.25% while those above Rs 50-lakh, the rate has been fixed at 9.75%.
India's biggest bank in terms of branch network State Bank of India (SBI) rose 0.68%. 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 private sector bank by net profit HDFC Bank fell 0.12% even as its ADR rose 1.01% on Wednesday.
Shares of state-run hydropower generator NHPC fell 0.82% to Rs 36.10. A huge volume of 2.13 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, Reliance Infrastructure, Torrent Power, Power Gid Corporation of India, CESC fell by between 0.3% to 2.17%.
Tata Power Company fell 1.34% 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.
Construction and capital goods fell on profit taking. 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.
From the capital goods space, Thermax, ABB, Siemens, Praj Industries, BEML, Punj Lloyd, fell by between 0.21% to 2.7 %.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell 1.14%. 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, Hindustan Construction Company, Gammon India, Gayatri Pojects, fell by between 0.29% to 4.07%.
Cement stocks were mixed after rise in cement dispatchment in August 2009. India's largest cement maker by sales ACC fell 1.1% even as cement dispatches rose 7.14% to 1.65 million tonnes in August 2009 over August 2008. ACC announced the sales figure during market hours on Wednesday.
Ambuja Cements rose 0.81% after cement sales rose, albeit slightly, to 1.43 million tonnes in August 2009 from 1.42 million tonnes in August 2008.
UltraTech Cement and Grasim Industries, rose by between 0.03% to 0.75%.
Fertilser stocks rose on a revival in India's annual monsoon in the second half of August 2009. Nagarjuna Fertilisers, Chambal Fertilisers & Chemicals, GSFC, GNFC, National Fertilzer rose by between 1.13% to 9.02%.
Fertilizer sales are directly dependent on monsoon. A bountiful monsoon boosts sales whereas a drought hits sales adversely.
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 Company, Harrison Malayalam, Warren Tea, Mcleod Russell rose by between 0.13% to 4.33%.
Suzlon Energy clocked the highest volume of 2.72 crore shares on BSE. NHPC (2.13 crore shares), Sanraa Media (1.62 crore shares), Unitech (1.05 crore shares) and Ispat Industries (0.97 crore shares) were the other volume toppers in that order.
Suzlon Energy clocked the highest turnover of Rs 272.40 crore on BSE. Aban Offshore (Rs 218.32 crore), Reliance Capital (Rs 205.72 crore), Reliance Industries (Rs 180.05 crore) and Reliance Communications (Rs 160.23 crore) were the other turnover toppers in that order.
Balaji Telefilms
We recommend a buy in Balaji Telefilms from a short-term perspective. It is evident from the charts that in mid-July it took support around Rs 40 and resumed its intermediate-term uptrend, which has been in place since March low of Rs 24.8. Moreover, it has been on a medium-term uptrend from July low. The stock breached its 21- and 50-day moving averages in mid-August and is trading well above them. On September 2, the stock penetrated its near-term resistance at Rs 64 by gaining 9 per cent, accompanied with high volume. The daily relative strength index has re-entered the bullish zone and weekly RSI is on the verge of entering this zone. Besides, the weekly moving average convergence and divergence indicator is likely to enter the positive territory. Our short-term outlook is bullish on the stock. We expect its up-move to continue until it knocks our price target of Rs 73. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 63.
via BL
Grey Market - Globus Spirits, Oil India, Jindal Cotex
| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) |
| Jindal Cotex | 70 to 75 | 3.50 to 4 | -- |
| Globus Spirits Ltd. | 90 to 100 | 5 to 7 | -- |
| Oil | 950 to 1050 | 85 to 90 | 1800 to 1900 (+ 250 Form Commission) |
Pre Session Commentary - Sep 3 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened with remarkable gains. The Asian markets have rebound today after suffering losses in the past few days, which will also help domestic as well as European traders gain some firmness. In the domestic arena one could witness some buying momentum across broader level, however subdued trading with low volume is inevitable during the day’s trading.
On Wednesday, 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. 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.
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.
On Wednesday, US stock markets ended down. The markets traded range bound during the day with low volume trade. Economic data dominated the market headlines. ADP Employment Change Report for August reported that 298,000 private jobs were lost last month which proved disappointing since economists were expecting 250,000 job losses. In the FOMC minutes of meeting conducted on August 15, the FOMC has expressed concerns about the weakness in labor markets and job losses. Further on the brighter side, productivity for second quarter surged a remarkable 6.6% which is sharpest since 2003 and also better than expected 6.4%. On the other hand Factory orders made during the month of July surged 1.3% but still short of 2.2% that was generally accepted. US light crude oil futures for October delivery closed flat at $68.05 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed lower by 29.93 points at 9,280.67, NASDAQ index closed higher by 1.82 points at 1,967.07 and the S&P 500 (SPX) also closed lower by 3.29 points at 994.75.
Today the major stock markets in Asia opened positive. The Shanghai Composite is trading high by 87.58 at 2,802.55, Hang Seng is higher by 172.05 points at 19,694.05. Further Japan''s Nikkei is low by 41.78 points at 10,238.68. Strait times is also trading up by 23.68 points at 2,593.61. Taiwan Weighted is up by 62.63 points at 7,102.40.
Indian ADRs ended mixed in yesterday''s trade. In the IT space, Satyam was the top gainer with 1.99% gain. Infosys & Patni gained 0.70% & 0.24% respectively while Wipro was down 1.53%. In the telecom space, Tata Communication was up 1.89%. MTNL was down 0.53%. In the banking space, HDFC Bank surged more than 1%. ICICI Bank gained 0.5%. Tata Motors was the biggest loser with 2.03% loss. Sterlite Industries was down 0.77%. Dr. Reddys ended in green with modest gain of 0.32%.
The FIIs on Wednesday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 2,596.80 Crore and gross debt purchased stood at Rs 519.50 Crore, while the gross equity sold stood at Rs 2,899.30 Crore and gross debt sold stood at Rs 286.10 Crore. Therefore, the net investment of equity and debt reported were Rs (302.50) Crore and Rs 233.40 Crore respectively.
On Wednesday, Indian Rupee closed at 48.96/97 per dollar, 0.2% weaker than its previous close at 49.05/06. The green back’s weakness against other currencies helped local currency gain strength.
On BSE, total number of shares traded were 44 Crore and total turnover stood at Rs 5,440.54 Crore. On NSE, total number of shares traded were 93.21 Crore and total turnover was Rs 16,832.45 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 79736359 shares, followed by Suzlon Energy with 55055589, DLF with 13157780, Reliance Comm with 12299261 and Tata Steel with 10591265 shares.
On NSE Future and Options, total number of contracts traded in index futures was 771316 with a total turnover of Rs 16,773.23 Crore. Along with this total number of contracts traded in stock futures were 535275 with a total turnover of Rs 16,858.45 crore. Total numbers of contracts for index options were 1196136 with a total turnover of Rs 28,084.99 Crore and total numbers of contracts for stock options were 52984 and notional turnover was Rs 1,771.10 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
Pre Session Commentary - Sep 3 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened with remarkable gains. The Asian markets have rebound today after suffering losses in the past few days, which will also help domestic as well as European traders gain some firmness. In the domestic arena one could witness some buying momentum across broader level, however subdued trading with low volume is inevitable during the day’s trading.
On Wednesday, 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. 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.
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.
On Wednesday, US stock markets ended down. The markets traded range bound during the day with low volume trade. Economic data dominated the market headlines. ADP Employment Change Report for August reported that 298,000 private jobs were lost last month which proved disappointing since economists were expecting 250,000 job losses. In the FOMC minutes of meeting conducted on August 15, the FOMC has expressed concerns about the weakness in labor markets and job losses. Further on the brighter side, productivity for second quarter surged a remarkable 6.6% which is sharpest since 2003 and also better than expected 6.4%. On the other hand Factory orders made during the month of July surged 1.3% but still short of 2.2% that was generally accepted. US light crude oil futures for October delivery closed flat at $68.05 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed lower by 29.93 points at 9,280.67, NASDAQ index closed higher by 1.82 points at 1,967.07 and the S&P 500 (SPX) also closed lower by 3.29 points at 994.75.
Today the major stock markets in Asia opened positive. The Shanghai Composite is trading high by 87.58 at 2,802.55, Hang Seng is higher by 172.05 points at 19,694.05. Further Japan''s Nikkei is low by 41.78 points at 10,238.68. Strait times is also trading up by 23.68 points at 2,593.61. Taiwan Weighted is up by 62.63 points at 7,102.40.
Indian ADRs ended mixed in yesterday''s trade. In the IT space, Satyam was the top gainer with 1.99% gain. Infosys & Patni gained 0.70% & 0.24% respectively while Wipro was down 1.53%. In the telecom space, Tata Communication was up 1.89%. MTNL was down 0.53%. In the banking space, HDFC Bank surged more than 1%. ICICI Bank gained 0.5%. Tata Motors was the biggest loser with 2.03% loss. Sterlite Industries was down 0.77%. Dr. Reddys ended in green with modest gain of 0.32%.
The FIIs on Wednesday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 2,596.80 Crore and gross debt purchased stood at Rs 519.50 Crore, while the gross equity sold stood at Rs 2,899.30 Crore and gross debt sold stood at Rs 286.10 Crore. Therefore, the net investment of equity and debt reported were Rs (302.50) Crore and Rs 233.40 Crore respectively.
On Wednesday, Indian Rupee closed at 48.96/97 per dollar, 0.2% weaker than its previous close at 49.05/06. The green back’s weakness against other currencies helped local currency gain strength.
On BSE, total number of shares traded were 44 Crore and total turnover stood at Rs 5,440.54 Crore. On NSE, total number of shares traded were 93.21 Crore and total turnover was Rs 16,832.45 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 79736359 shares, followed by Suzlon Energy with 55055589, DLF with 13157780, Reliance Comm with 12299261 and Tata Steel with 10591265 shares.
On NSE Future and Options, total number of contracts traded in index futures was 771316 with a total turnover of Rs 16,773.23 Crore. Along with this total number of contracts traded in stock futures were 535275 with a total turnover of Rs 16,858.45 crore. Total numbers of contracts for index options were 1196136 with a total turnover of Rs 28,084.99 Crore and total numbers of contracts for stock options were 52984 and notional turnover was Rs 1,771.10 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
Market may snap last three days of losses on positive Asia; inflation eyed
The key benchmark indices may edge higher on bargain hunting after last three days of losses backed by positive Asian stocks. Investors will keenly watch the wholesale price index (WPI) in the year to 22 August to be announced by the government today. The WPI fell 0.95% in 12 months to 15 August 2009. The fall, however, was lower than previous week's 1.53% decline.
The key benchmark indices edged lower on Wednesday, 2 September 2009 extending losses for the third straight day, as weak global stocks weighed on investor sentiment. The BSE 30-share Sensex lost 83.73 points or 0.54% to 15,467.46 on Wednesday, 2 September 2009. The BSE Sensex has lost 454.88 points or 2.85% in the last three days from 15,922.34 on Friday, 28 August 2009 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.
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 on Wednesday 2 September 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.
Asian stocks advanced today after gold prices climbed and Alcoa Inc. raised its forecast for global aluminum consumption. The key benchmark indices in China, Hong Kong, South Korea, Singapore and Taiwan rose by between 0.31% to 3.36%.
Japan's stocks slipped 0.41% on expectations of a slower recovery than investors have priced into markets, raising uncertainty about riskier assets.
The US markets fell for the fourth straight day on the back of some disappointing economic data. At the day's close, the Dow Jones Industrial Average reported its fourth straight decline, falling about 0.32% or 29.93 points, to 9,280.67. The S&P 500 Index shed 0.33% or 3.29 points, to 994.75 and the Nasdaq Composite dropped 0.09% or 1.82 points, to 1,967.07.
Driving the losses in the market was mainly news from the economic front. The ADP employment change report showed private employers cut 298,000 jobs in August 2009. This was more than the 250,000 economists expected. Factory orders rose 1.3% in July. The pace was much slower than the 2.2% expected.
But on an encouraging note, Federal Reserve policy makers said they are confident the recession is ending. They are therefore more comfortable slowing down their economic-recovery plan, according to minutes from their last meeting.
Daily News Roundup - Sep 3 2009
RIL has told power ministry about NTPC reluctance to sign the gas supply contract. (BS)
Maruti is considering hike in production capacity at Manesar plant. (BS)
Power Ministry wants more gas from RIL’s KG-Basin block for new power projects. (BS)
MTNL has submitted a bid to acquire a 75% stake in Nigerian Telecommunications. (ET)
NTPC plans to move the Supreme Court against a decision by a division bench of the Bombay High Court that allowed Reliance Industries to make changes in its written arguments. (ET)
Tata group may consider diluting its stake in Infiniti Retail, its wholly-owned subsidiary, which runs the consumer durable chain Croma. (ET)
IOC is likely to sign a JV agreement with Nuclear Power Corp of India this month to foray into nuclear power generation. (ET)
Bharti Airtel plans to roll out 3G services by October 2010. (FE)
Tata Sons plans to raise its stake in some group companies, after its dividend from TCS doubled to Rs20bn. (ET)
DoT has asked Sistema Shyam Teleservices to seek fresh approval for its wholly-owned subsidiary Shyam Internet Services, an internet service provider. (ET)
Bank of India eyes entry into 14 foreign locations with Rs6bn investment in FY10. (FE)
Tata Motors is considering raising small commercial vehicle manufacturing capacity after its Pantanagar facility reaches full capacity. (ET)
Godrej Appliances plans to invest Rs1.2bn for setting up a television facility in Himachal Pradesh by the middle of next year. (ET)
Tata Steel, SAIL and ISPAT Industries have increased flat product prices by upto Rs1,500/per ton . (BS)
Bajaj Auto august two-wheeler sales rise 4% yoy. (BS)
Tata Motors to hike its production ACE light truck by 15-20% till end of March. (BS)
IL&FS backs out of stake buy in Tata Tea plantation unit. (BS)
Tata Motors to phase out 15 truck model by March 2010. (BL)
Ranbaxy to sell products of Daiichi Sankyo in Romania. (BL)
IL&FS has announced an open offer for Maytas Infra at Rs112.8 per share. (BS)
Oil India is looking in overseas acquisition in partnership with IOC and may form JV for pipeline projects. (BS)
Shriram EPC arm to set up 18MW wind farm in Czech Republic. (BL)
SEBI has granted MCX-SX one more year to complete the exchange’s disinvestment process. (BS)
Government may sell 15% stake in Coal India as against 10% proposed earlier. (BS)
Modi Rubber plans to sell an undisclosed equity stake to German technology partner Continental. (ET)
Carborundum Universal has signed a division agreement with its Chinese JV partner, China Metallurgical Geology Bureau for restructuring the JV, Jingri-CUMI super hard materials Co. (ET)
Golden Tobacco may co-develop or sell its 7.5-acre property in western Mumbai. (ET)
Loop Mobile plans to invest Rs3.6bn as FY10 capital expenditure. (FE)
Europe based hospitality group Accor, owning ~4,000 hotels across the world, plans to open 45 new properties in India by 2012. (FE)
Finance ministry has exempted transport of goods by Railways from the service tax. (BL)
The Government has made it mandatory for automobile manufacturers to sell vehicles with energy-efficiency tags from 2011. (ET)
The Government is looking at a proposal to remove a 1mn ton limit on white sugar imports. (ET)
Airfares are likely to rise by 10% in the current month as jet fuel prices go up. (ET)
Opportunities in obstacles
An obstacle is often an unrecognized opportunity.
The bulls will hope that the immersion, which symbolizes Ganesha’s return from the earth after removing obstacles, will hold true for the market. Sentiment suddenly appears to be sinking in the recent past with concerns especially on the monsoon front. But, the volatility in the market always provides some opportunities to capitalise on.
A flat to slightly positive start is in the offing. We expect stocks to remain lackluster and sideways in the near term without any specific bias. With most good news discounted, the market is now anxiously awaiting the next batch of positive triggers. At the same time, the poor monsoon has added to concerns that inflation will shoot up.
In fact, CPI has already started inching up, with most indices at around 10-12%. Even the WPI inflation is expected to turn positive in the run up to festivals. The Government and the RBI have their task clearly cut out. With stock valuations not cheap and uncertainty in global markets, the market will find it tough to make new highs.
Even the liquidity factor seems to be turning adverse, especially from the overseas side, due to the dearth of incremental good news. With the market turning volatile lately, some traders have resorted to the so-called pair strategies to avoid getting caught on the wrong foot. We see the churning of portfolios and the consolidation phase to continue for a while.
Coming to the big news, the missing Andhra Pradesh CM is yet to be traced. The search so far has proven to be elusive. Hope we hear some good news on this front soon.
FIIs were net sellers at Rs6.88bn in the cash segment on Wednesday on a provisional basis while the local funds pumped in Rs737.9mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs13.6bn. On Tuesday, FIIs were net buyers of Rs3.02bn in the cash segment. Mutual Funds were net buyers of Rs935mn on the same day.
US stocks slipped on Wednesday after a volatile session as nervous investors continued to worry that the market rally may have outpaced any recovery.
The Dow Jones Industrial Average lost 30 points, or 0.3%, to 9,280.67. The S&P 500 index slid 3 points, or 0.3%, to 994.75. The Nasdaq Composite index managed a tiny gain of 2 points, or 0.2%, to 1,967.07.
Stocks seesawed throughout the session as investors considered a couple of private unemployment reports that signaled that the pace of job cuts continues to moderate, ahead of Friday's bigger August jobs report. Trading was largely listless.
The release of the minutes from the last Fed meeting failed to have any material impact on the sentiment. The FOMC minutes showed that the American central bankers thought that the US economy was stabilising, after weakening in 2008 and early 2009, and construction was starting to pick up.
The Fed policymakers also discussed the need to keep refining the central bank's so-called exit strategy after injecting billions into the financial system to help manage the meltdown.
Stocks slumped on Tuesday, with the three major gauges all losing around 2%. Since bottoming on March 9 at a 12-year low, the S&P 500 has basically been on the rise, adding 52% through Monday. Stocks saw a minor retreat in late June and early July, with the S&P 500 losing about 7% heading into the start of the second-quarter financial reporting period. But other than that small selloff, the direction has mostly been up.
Reports on Tuesday showed housing and manufacturing are recovering, but investors remain worried about the labor market and how rising joblessness will impact consumer spending. Consumer spending fuels two-thirds of the US economic growth.
Payroll services firm ADP said employers in the private sector cut 298,000 jobs from their payrolls last month after cutting a revised 360,000 in July. Economists were expecting 250,000 job cuts.
Separately, outplacement firm Challenger, Gray & Christmas reported 76,456 job cut announcements in August, 21% fewer than in July. Although both reports indicate the pace of job cuts has slowed, the US economy is still shedding jobs.
However, many economists were forecasting no abatement or improvement until later this year or early next. If the pace of the recovery in the jobs market continues and business spending picks up, the recovery could be stronger than forecast. But without those two factors, growth will remain sluggish.
A Labor Department report showed that non-farm productivity rose at a 6.6% annual rate during the second quarter versus the initially reported 6.4% pace. That was in line with forecasts.
Factory orders rose 1.3% in July, the Commerce Department reported. Orders rose a revised 0.9% in June. Economists thought orders would rise 2.2% in July.
Wells Fargo is set to repay the $25 billion in bailout funds it took from the U.S. government. The bank expects to pay it back from internal funds, rather than through issuing new shares. Financial stocks as a sector retreated for the second session in a row, although the declines were fairly modest.
The KBW Bank index lost nearly 8% in Tuesday and Wednesday's sessions after rallying 20% in the three months ended Aug. 31.
Pfizer will plead guilty to a criminal charge related to how it promoted now-defunct pain killer Bextra. The Dow component will pay $2.3 billion to settle charges it wrongly marketed 13 medicines. In January, Pfizer said it took the charge but didn't specify why.
Shares of Sepracor rallied 26.5% on published reports that Japan's Dainippon Sumitomo Pharma plans to make a $2.7 billion bid for the drugmaker.
Diversified manufacturer Danaher said it is cutting more jobs as part of its restructuring plan - and is buying two businesses that make scientific instruments for about $1.1 billion. The company is buying the life sciences instrument business of Canadian MDS for $650 million in cash.
That purchase includes a 50% stake in AB SCIEX, which makes instruments used by researchers. Danaher will also buy the rest of AB SCIEX for $450 million. Danaher shares gained 2%, while MCS shares gained 32%.
US light crude oil for October delivery settled at $68.05 a barrel on the New York Mercantile Exchange after a mixed weekly inventory report from the Energy Information Administration. The settle price was unchanged from the previous session. Oil prices have been slipping since hitting a 10-month high just below $75 a barrel late last month.
In other energy sector news, BP said that it has made a "giant" oil discovery in the Gulf of Mexico. Although the company doesn't yet know the volume of oil present, it is thought to be in excess of 3 billion barrels.
COMEX gold for December delivery rose $22 to settle at $978.50 an ounce.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.29% from 3.36% late on Tuesday.
In currency trading, the dollar fell versus the euro and the Japanese yen.
US retail chain stores will be releasing August sales on Thursday. Investors will be looking to see if the stock rally and signs of recovery in the economy have had any impact on consumer spending. The Institute for Supply Management's services sector index for August is also due in the morning, along with the weekly jobless claims report.
European shares closed down for a third straight session, with financials among the worst performers as investors took some recent profits off the table. The pan-European Dow Jones Stoxx 600 index declined 0.5% to 230.49. The index ended with a 1.8% loss on Tuesday, the first day of September and the second consecutive day of losses.
Germany's DAX index lost 0.1% to 5,319.84, while the French CAC-40 index declined 0.3% to 3,573.13 and the UK's FTSE 100 index ended virtually unchanged at 4,817.55. In Spain, where unemployment rose in August, the Ibex 35 index fell 1.6% to 10,991.1.Indian markets extended its losing streak to third straight trading session on Wednesday mainly on the back of a sell-off seen in the international equity markets. Domestically, disappointing reports on manufacturing PMI and exports coupled with weak monsoon continue to have adverse effect on market sentiment.
The IT, select telecom and the Pharma stocks were among the major gainers while the Realty and the Auto stocks took some beating. Even the Mid-Cap and the Small-Cap stocks were under pressure.
Over the past three days the NSE Nifty has lost 130 points or 2.6%, while the BSE Sensex has shed ~455 points or 2.8%. Technically, 4,550-4,560 is the 20 day moving average where the index could find some support.
On Wednesday, the BSE Sensex lost 84 points or 0.54% at 15,467 after touching a high of 15,628 and a low of 15,392. The index opened at 15,482 against the previous close of 15,551. The NSE Nifty slipped by 17 points to shut shop at 4,608.
In Asia, the Nikkei in Japan slipped 2.3% at 10,280 while Australia's S&P/ASX ended lower by 1.7% at 4,438. The Hang Seng index in Hong Kong was down 1.8% at 19,522. Meanwhile, Shanghai index in China recovered and ended higher by 1.2% at 2,714.
In Europe, stocks were trading in the red. The FTSE in the UK was down 0.5%. The DAX in Germany was down 0.9% and the CAC 40 index in France was down 1.2%.
Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, shedding 1.7%, followed by the Auto index that was down 1.4%. The BSE Capital Goods index down 1.2% and the BSE Power index was down 1%.
Bucking the negative trend were BSE IT index up 1% and BSE Teck index was up 0.6%. The BSE Mid-Cap index slipped 0.7% and the BSE Small-Cap index lost by 0.4%.
Among the 30-components of Sensex, 21 stocks ended in the red and 8 ended in the positive terrain. Among the major losers were Sterlite, BHEL, JP Associates, M&M, Maruti and Tata Motors.
On the other hand, RCom, HUL, Hero Honda, TCS and Infosys were among the major gainers.
Outside the frontline indices, the big losers in the broader market were Gujarat NRE, Tulip Tele, PTC India, IRB Infra, Exide Ind. On the other hand, gainers included Essar Oil, Oracle Finance, P&G, OBC and Renuka Sugars.
Shares of Austral Coke & Projects were locked at 5% lower circuit at Rs48 after SEBI yesterday barred it from raising more funds.
The market regulator barred Austral Coke from raising any fresh equity after the IT department discovered an suspected more than Rs10bn fraud in the company's transactions.
SEBI hereby prohibits Austral Coke and Projects from raising any further capital in any manner, directly or indirectly, whatsoever, till further orders," the regulator said in an order.
The ban has come ahead of the company's board meeting on which was scheduled to be held on September 3 for considering raising about Rs9.6bn through private placement of shares with institutions.
Meanwhile, shares of Gremach Infrastructure were also locked at 10% lower circuit at Rs38. The stock opened at Rs38 and made an intra-day high of Rs38 and a low of Rs38. Total traded volumes stood at 0.184mn shares.
Shares of Ranbaxy and Strides Arcolab were in demand after they secured bagged order to supply 9.2mn capsules of generic or low priced version of swine flu drug Tamiflu. In addition, reports stated that Ranbaxy will market Daiichi Sankyo’s osteroporosis drug Evista in Romania through its subsidiary Terapia Ranbaxy.
Shares of Ranbaxy gained by 1.2% to Rs322. The stock opened at Rs322 and made an intra-day high of Rs327 and a low of Rs318. Total traded volumes stood at 0.32mn shares.
On the other hand, Shares of Strides Arcolab advanced by 6.5% to Rs162. The stock opened at Rs151 and made an intra-day high of Rs165 and a low of Rs151. Total traded volumes stood at 0.77m shares.
Shares of RNRL gained by 2.4% to Rs86. A court filing proposed by the government said its production-sharing contract with Reliance Industries must prevail over any private arrangement the company has for the sale of natural gas from the KG-D6 field. The stock opened at Rs85 and made an intra-day high of Rs88.8 and a low of Rs84.20. Total traded volumes stood at 10mn shares.
Maruti Suzuki announced that it plans to spend as much as Rs15bn on a research and development center in Rohtak, Haryana, said the Chairman R.C. Bhargava. The company aims to design small cars in India, he added. The stock was down by 2.2% to Rs1510. It opened at Rs1534 and made an intra-day high of Rs1571 and a low of Rs1507. Total traded volumes stood at 0.23mn shares.
Shares of Texmaco shot up by over 3.5% to Rs119 after Reliance Capital Trustee and Reliance Infrastructure Fund picked up 3.9313% stake increasing its stake to 6.0858%. The reliance funds acquired the shares through Qualified Institutional Placement, according to a disclosure made in the Bombay Stock Exchange. The stock opened at Rs115 and made an intra-day high of Rs127 and a low of Rs112. Total traded volumes stood at 0.32mn shares.
Shares of Redington India surged by over 10% to Rs258 after ~2.8% of the company’s shares changed hands in a single transaction. The stock opened at Rs231 and made an intra-day high of Rs274 and a low of Rs231. Total traded volumes stood at 2.9mn shares.
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