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Thursday, September 24, 2009
Markets end in green; Sensex gains 62 pts
The Sensex ended on a positive note supported by HDFC, HDFC Bank and Wipro. Banking, healthcare and FMCG gained, while IT, metal and consumer durables stocks led the declines. It opened with a loss of 85.42 points, at 16,634.08 on Thursday tracking negative global cues and continued to trade in the red for most part of the day on sustained selling seen in index heavyweights, touching a low of 16,494.92. Later the markets witnessed short covering, which lifted the index up to finally, wrap up in green. It touched a high of 16,834.10.
BSE Midcap and Smallcap index rose 0.74% and 0.46% respectively.
On sectoral front, BSE IT and Metal dropped over 1% each, Consumer durables dipped 0.77%, Auto down by 0.67%, while Bankex rose 1.48%, Healthcare up 0.91%.
Inflation continued to tread in positive direction for the second consecutive week to stand at 0.37% for the week ended Sep. 12, 2009 as against 0.12% in the previous week.
European stocks fell on speculation a six-month rally has outpaced the prospects for earnings as the Federal Reserve nears the end of efforts to lift the economy. UK`s benchmark index FTSE 100 fell 4.82 points, or 0.09%, to trade at 5,134.55. French benchmark index CAC 40 lost 8.02 points, or 0.21%, to trade at 3,813.16. Germany`s benchmark index DAX dropped 9.21 points, or 0.16%, to trade at 5,693.24 (4.10 p.m., IST)
Asian stocks markets ended mixed. Few of the stocks fell led by commodity and finance companies, as raw-material prices declined and Aiful Corp. forecast a full-year loss. Jiangxi Copper lost more than 3.5% in Hong Kong. Aiful tumbled 24%. Toshiba added almost 4% after Credit Suisse Group more than doubled its price estimate. Japanese benchmark index Nikkei gained 173.68 points, or 1.67%, to end at 10,544.22. Hong Kong`s Hang Seng index declined 544.79 points, or 2.52%, to close at 21,050.73. China`s Shanghai Composite increased 10.83 points, or 0.38% to settle at 2,853.55.
The Sensex ended the day with a gain of 61.93 points, or 0.37% at 16,781.43 after touching a high of 16,834.10 and a low of 16,494.92. The broad-based NSE Nifty climbed 16.60 points, or 0.33% at 4,986.55 after hitting a high of 5,016.70 and a low of 4,904.05.
Major gainers in the 30-share index were Housing Development Finance Corporation (3.39%), HDFC Bank (3.39%), Wipro(2.21%), Reliance Communications (2.14%), NTPC (1.97%), and ICICI Bank (1.74%).
On the other hand, Hindalco Industries (3.98%), Infosys Technologies (3.40%), Hero Honda Motors (1.59%), Tata Steel (1.41%), ACC (1.30%), and Maruti Suzuki India (1.17%) were the major losers in the Sensex.
Overall market breadth was positive. Out of the total 2,840 stocks traded at BSE,1,466 advanced, 1,289 declined while 85 remained unchanged.
Avinash Gupta, assistant vice president, Research Equity, Bonanza Portfolio commenting on the market outlook for tomorrow said, `` The market is continuing with consolidation in the range of 4,850 and 5,100.``
He said, ``The weakness in commodities induced by data from US and China influenced the sentiment in market today. The market opened significantly below yesterday`s closing and drifted downward. Short covering subsequently and trading influenced by expiry of derivative contracts considerations pulled the market up and helped the market to close in green.``
Asian markets step in Wall Street shoes
Nikkei lead the regions gain while Hang Seng, Taiex, Sydney fell further
Stock market in Asian region finished lower on Thursday 24 September 2009, mirroring investor caution in the United States, while the US dollar was steady after the Federal Reserve reiterated interest rates would stay low for a long period.
On Wall Street, late-day selling in energy and commodity stocks left the major averages up to 1% lower Wednesday as Wall Street brushed off the Federal Reserve's latest statement. The Dow Jones Industrial Average fell 81.32 points, or 0.8%, to 9748.52, while the S&P 500 gave up 10.79 points, or 1%, to 1060.87. The Nasdaq Composite ticked down 14.88 points, or 0.7%, to 2131.42.
On the economic front, the Federal Reserve said it would keep its key interest rate target at near zero, signaling that one of the first tools it used to battle the financial crisis is likely to be the last it returns to its toolkit. The central bank's Federal Open Markets Committee unanimously maintained its target rate at a range between zero and 0.25%, where it has stood since December.
In the commodity market, crude oil declined for a second day in New York after a U.S. government report showed a larger-than- expected increase in fuel stockpiles in the world’s largest energy-consuming nation.
Crude oil for November delivery fell as much as 87 cents, or 1.3%, to $68.10 a barrel in electronic trading on the New York Mercantile Exchange. It was at $68.49 at 2:15 p.m. Singapore time. Yesterday, the contract dropped 3.9% to settle at $68.97.
Brent crude for November settlement dropped as much as 61 cents, or 0.9%, to $67.38 a barrel on the London-based ICE Futures Europe exchange. It was at $67.56 at 2:12 p.m. Singapore time.
Gold advanced on speculation a recovery in global economies will fuel inflation, prompting investors to buy the metal as a hedge against higher prices. Gold for immediate delivery rose as much as 0.5% to $1,013.01 an ounce and traded at $1,012.41 at 2:37 p.m. in Singapore.
In the currency market, US dollar rebounded strongly after post FOMC spike, helped by sharp reversal in US stocks and further weakness in crude oil. Broad based weakness is seen in Asian equities, except Japan, which provides further support to the greenback and triggers sharp rally in the Japanese yen.
The Japanese yen strengthened against major currencies. The Japanese yen was quoted at 90.45 against the US dollar and 134 against euro.
The Hong Kong dollar was trading at HK$ 7.7503 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 closed marginally higher today as traders adjusted their portfolios ahead of the Group of 20 leaders meeting, which begins overnight Australian time. At the local close, the dollar was trading at $US0.8741, up from Wednesday’s close of $US0.8739. During the domestic session, the unit moved between $US0.8651 and $US0.8749.
In Wellington trade, the New Zealand dollar fell away sharply today, with the decline coming soon after a statement from the United States Federal Reserve. During the early hours, the kiwi dropped from around US72.80c to the US72c level, near where it was before data indicating an end to recession caused a meteoric rise to a brief peak a little above US73c yesterday morning.
The South Korean currency ended at 1,195.7 won against the dollar, down 1.3 won from Wednesday's close, as foreigners sold the Korean currency.
The Taiwan dollar weakened against the greenback. The Taiwan dollar was trading lower against the US dollar at NT$ 32.3950, 0.0340 down from Wednesday’s close of NT$32.3690.
Coming back in equities, Japanese shares made a solid showing in their resumption of trading after an extended holiday, while Hong Kong stocks closed Thursday's session lower, reflecting a mixed performance across the region.
In Japan, shares market advanced, as investors returned from an extended break and as the US Federal Reserve’s upbeat assessment of the economic prospects for the world’s largest economy outweighed fears about a stimulus withdrawal by the Fed. Japan’s markets were closed from 21 September 2009 to yesterday for national holidays.
At the closing bell, the Nikkei 225 Stock Average index surged 173.68 points or 1.67%, to 10,544.22, while the broader Topix spurted 10.76 points, or 1.15%, to 950.20.
On the economic front, the finance ministry said Thursday Japan’s exports tumbled 36% in August to 4.5 trillion yen, dragged down by slumping global demand for cars and steel products. Imports in August plunged 41.3% from a year earlier to 4.3 trillion yen, resulting in a trade surplus of 190 billion yen.
Japan’s oil and natural gas imports fell in August because of lower energy demand from factories and as consumers switched off air conditioners because of cooler summer weather. Japan shipped in 17.83 million kiloliters, or about 3.62 million barrels a day, of crude oil last month, down 12.4% from a year earlier, according to preliminary finance ministry trade report.
In Mainland China, share market bounced back from morning low to finish the session higher, snapping two days of loosing streak, supported by banks and financials and properties stocks as investors logs to short covering on hopes recent sell off on worries about apparent liquidity in the market was overdone. The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, recovered 10.83 points, or 0.38%, to 2,803.97, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, bounced 0.68%, to 3,080.93.
On the economic front, China's insurance industry realized 759.5 billion Yuan in insurance premium income during the first eight months of this year, 6.5% more than in the same period of last year, according to statistics released by the China Insurance Regulatory Commission yesterday.
In Hong Kong, the stock market dropped with broad based sell off across the sector following a weak lead from Wall Street and Shanghai markets, fall in commodity prices, and on persistent worries about liquidity squeeze. Sentiments were further hurting by worries about government economic stimulus withdrawal and lackluster performance of debutante Metallurgical Corp. of China. The Hang Seng Index stumbled 544.79 points, or 2.52%, to 21,050.73, while the Hang Seng China Enterprise slid 384.56 points, or 3.09%, to 12,047.25.
In Australia, the shares market weighed down by tracking a poor session on Wall Street overnight and a fall in commodity prices. Weaker metals prices dragged down shares of Anglo-Australian miners BHP Billiton and Rio Tinto, while Woodside Petroleum and Oil Search stumbled due to steep pullback in crude oil prices on demand concerns resurface. Losses among larger media and retail stocks dragged down consumer discretionary sector.
At the closing bell, the benchmark S&P/ASX200 index slipped 32.9 points, or 0.69%, to 4,701.2, meanwhile the broader All Ordinaries melted 33 points, or 0.7%, to 4,708.
On the economic front, the Reserve Bank of Australia said in its Financial Stability Review published Thursday “Conditions in the global financial system have improved significantly since the last Financial Stability Review in March”. The central bank report said Australia’s financial system has “remained resilient”, with the nation’s banks experiencing “only a modest decline in profitability”.
The Housing Industry Association said that the sale of new homes in Australia surged 11% in August compared to the previous month. The number of detached house sales increased by 11.8% in August, while the number of apartments sold rose by 7.5%.
In New Zealand, stock market ended lower following a dull session on the Wall Street overnight subsequent to yesterday’s gain after data revealed that the New Zealand economy has managed to crawl out of its 15-month recession. The NZX50 decreased 0.56% or 17.49 points to 3130.42. The NZX 15 was down 0.66% or 37.86 points to close at 5726.36.
In South Korea, stocks fell pushing the key index below the 1,700-mark as investors took profits from recent gains. The benchmark Korea Composite Stock Price Index (KOSPI) lost 17.59 points to 1,693.88 after staying above the 1,700-mark for two days. The dip follows steady gains that pushed the KOSPI to its highest levels in 15 months.
In Singapore, stock market tumbled down on tracking weak cues from Wall Street overnight and other Asian bourses, and falling commodity prices. Major banks stocks were lower, with DBS and OCBC leading declines after Singapore’s consumer prices fell for a fifth straight month in August and on fears about a stimulus withdrawal by the Fed. The blue chip Straits Times Index was ended at 2,667.43, lost 18.51 points, or 0.69%.
In Taiwan, stock market extended their losing streak for fourth straight session as financial and technology stocks fail to show an up tick. The benchmark Taiex share index continued shift lower in the fourth session of the third week of September as it finishing lour by 52.54 points or 0.71% in a day, closing the day at 7324.22, weakest closing since 14 September 2009.
On the economic front, the government planned to raise business tax by one percentage point to 6% by 2013, thereby generating NT$45 billion of extra income annually to be used to fund the national pension and strengthen national finance, said Lee Sush-der, finance minister on yesterday.
In Philippines, the stock market closed lower in line with the regional market, as investors looked in profits after the sharp rebound during the previous day's trading. Investor’s took cues from the losses on Wall Street, as they reacted to the Federal Reserve announcement that it would maintain its stimulus program to nurture a fragile recovery.
The benchmark index PSEi fell 0.18% or 5.17 points to 2,837.34, while the All Shares index lost 0.61% or 11.15 points to 1,812.68.
On the economic front, the Bangko Sentral ng Pilipinas (BSP) -central bank- sees inflation picking up starting this month until the rest of the year as "base effects" from last year’s record-high commodity prices wane and the world economy recovers. BSP simulations saw inflation was averaging 3% this year, well within the central bank’s 2.5%-4.5% target. A slight pick-up is expected in 2010, with inflation likely averaging at 3.3%, slightly below the BSP’s 3.5%-4.5% target for that year.
Amid easing inflation, the BSP cut its policy rates by a total of 200 basis points to spur economic growth. After six consecutive cuts since December last year, the benchmark overnight borrowing rate now stands at a record low of 4%. Policy rates were kept on hold at the Monetary Board’s last meeting on 20 August, leaving market players speculating on when the BSP will start tightening policy.
In India, the key benchmark indices moved into the positive zone in late trade. Volatility ruled the roost in the last one hour of trade as traders rolled over derivatives contracts from September 2009 series to October 2009 series ahead of today's expiry of September 2009 contracts. Recovery in US index futures aided a strong intraday rebound on the domestic bourses.
The BSE 30-share Sensex was up 61.93 points or 0.37% to 16781.43. The S&P CNX Nifty was up 16.60 points or 0.33% to 4,986.55.
On the economic front, India's headline inflation gained for the second straight week, data released by the government during trading hours today showed. Inflation based on the wholesale price index rose 0.37% in the year through 12 September 2009, higher than previous week's gain of 0.12%. The food article index was responsible for the rise in inflation. The index surged 15.64%. The government revised upwards headline inflation for the week ended 18 July 2009 to a fall of 0.54% from a provisional decline of 1.54%.
Elsewhere, Malaysia's Kula Lumpur Composite index went down 0.08% or 1.01 points to 1218.06 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2468.90.
In other regional market, European shares fell for the first time in three sessions on Thursday, with investors taking profits after policy decisions from the U.S. Federal Reserve and a smaller-than-expected rise in a key German sentiment indicator. On a regional level, the U.K. FTSE 100 index lost 0.4% to 5,117.03, the German DAX index declined 0.4% to 5,676.85 and the French CAC-40 index fell 0.5% to 3,801.50.
Nifty October 2009 futures above 5000
Turnover spurts
Nifty October 2009 futures were at 5002 at a premium of 15.45 points as compared to the spot closing of 4986.55. Turnover in NSE's futures & options (F&O) segment spurted to Rs 1,16,850.34 crore from Rs 91,178.35 crore on Wednesday, 23 September 2009.
The September 2009 derivatives contracts expired today, 24 September 2009. Rollover in Nifty futures had surged to about 55% at the end of Wednesday's trading from about 36% at end of Tuesday's (22 September 2009) trading.
Bharat Heavy Electricals October 2009 futures were at premium at 2275.05 compared to the spot closing of 2266.30.
Larsen & Toubro October 2009 futures were at premium at 1659 compared to the spot closing of 1652.95.
State Bank of India October 2009 futures were at discount at 2154 compared to the spot closing of 2169.40.
In the cash market, the S&P CNX Nifty rose 16.60 points or 0.33% at 4,986.55.
BSE Bulk Deals to Watch - Sep 24 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
24/9/2009 532683 AIAENGINEER GENESIS ASSET MANAGERS LTD A/C GENESIS INDIAN INVESTMENT B 3703889 276.00
24/9/2009 532683 AIAENGINEER SNM INVESTMENTS LIMITED S 4159400 276.00
24/9/2009 531761 AMULYA LEAS SMRIDHI FARMS PVT. LTD. B 30000 16.45
24/9/2009 517565 ASHCO NIUL SUBODHSAGAR SHARES & SERVICES PRIVATE LIMITED B 166461 14.01
24/9/2009 517565 ASHCO NIUL SUBODHSAGAR SHARES & SERVICES PRIVATE LIMITED S 166965 14.05
24/9/2009 526652 CALS REF LTD MAVI INCESTMENT FUND LIMITED(GDR) S 66991381 0.70
24/9/2009 531337 CHAN GUIDE I B H LAKHANI S 30109 90.82
24/9/2009 533026 CHEMCEL LAXMAN DHIRUBHAI PARMAR B 150000 7.53
24/9/2009 532941 CORDS CABLE DB (INTL) OWN TRADING B 63812 48.23
24/9/2009 532941 CORDS CABLE DB (INTL) OWN TRADING S 63812 48.10
24/9/2009 532022 FILAT FASH J V STOCK BROKING PRIVATE LIMITED B 81997 33.87
24/9/2009 532022 FILAT FASH KANCHAN VIJAYKUMAR THAKKAR B 38369 34.58
24/9/2009 532022 FILAT FASH OM EDUCATION (IT) PVT LTD B 72580 33.07
24/9/2009 532022 FILAT FASH PARI STOCK TRADING PVT LTD B 562654 35.70
24/9/2009 532022 FILAT FASH AYODHYAPATI INVESTMENT PVT. LTD B 50000 36.00
24/9/2009 532022 FILAT FASH NARESHCHAND JAIN B 42738 36.70
24/9/2009 532022 FILAT FASH AMIT SHANTILAL MEHTA B 33379 34.72
24/9/2009 532022 FILAT FASH AADESH COMMODITIES PRIVATE LTD B 50000 35.85
24/9/2009 532022 FILAT FASH CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 79521 35.18
24/9/2009 532022 FILAT FASH J V STOCK BROKING PRIVATE LIMITED S 80699 34.16
24/9/2009 532022 FILAT FASH ASHA RAJESH SHAH S 100000 34.41
24/9/2009 532022 FILAT FASH SHAILESH VED S 75000 32.66
24/9/2009 532022 FILAT FASH KANCHAN VIJAYKUMAR THAKKAR S 38369 36.23
24/9/2009 532022 FILAT FASH KANODIA STOCK BROKING (P) LTD S 50000 35.85
24/9/2009 532022 FILAT FASH OM EDUCATION (IT) PVT LTD S 72580 32.88
24/9/2009 532022 FILAT FASH PARI STOCK TRADING PVT LTD S 475921 35.02
24/9/2009 532022 FILAT FASH AYODHYAPATI INVESTMENT PVT. LTD S 150000 33.09
24/9/2009 532022 FILAT FASH RUPESH AAGHERA S 45000 32.83
24/9/2009 532022 FILAT FASH NARESHCHAND JAIN S 42738 37.99
24/9/2009 532022 FILAT FASH AMIT SHANTILAL MEHTA S 33379 35.71
24/9/2009 532022 FILAT FASH CHIMANLAL MANEKLAL SECURITIES PVT.LTD S 87021 35.75
24/9/2009 531486 FILMCIT MEDI WELLNESS COMMUNICATION (P) LTD S 2000000 0.99
24/9/2009 500676 GLAXOSMI CON ARISAIG INDIA FUND LTD B 300000 1149.96
24/9/2009 533104 GLOBUS SPR TRANSGLOBAL SECURITIES LTD. B 206280 91.30
24/9/2009 533104 GLOBUS SPR AKG SECURITIES AND CONSULTANCY LIMITED B 104988 91.57
24/9/2009 533104 GLOBUS SPR OPG SECURITIES P LTD B 356625 93.13
24/9/2009 533104 GLOBUS SPR R.M.SHARES TRADING PVT.LTD B 126287 91.61
24/9/2009 533104 GLOBUS SPR TRANSGLOBAL SECURITIES LTD. S 207049 91.45
24/9/2009 533104 GLOBUS SPR AKG SECURITIES AND CONSULTANCY LIMITED S 104988 92.18
24/9/2009 533104 GLOBUS SPR OPG SECURITIES P LTD S 356625 93.22
24/9/2009 533104 GLOBUS SPR R.M.SHARES TRADING PVT.LTD S 126287 92.12
24/9/2009 532734 GODAWARI POW MBL & Co. LTD. B 157258 171.43
24/9/2009 532734 GODAWARI POW MBL & Co. LTD. S 157258 171.30
24/9/2009 500467 HARRISON MAL TRANSGLOBAL SECURITIES LTD. B 104663 134.28
24/9/2009 500467 HARRISON MAL TRANSGLOBAL SECURITIES LTD. S 104663 134.29
24/9/2009 506131 INDIA CO VEN SHLOK MANAGEMENT AND INVESTMENT PRIVATE LIMITED S 87075 54.74
24/9/2009 523467 JAI MATA GLA BP FINTRADE PRIVATE LIMITED S 36900 5.87
24/9/2009 506016 JALGAON RE-R RAMESH K MISHRA B 5000 37.35
24/9/2009 506016 JALGAON RE-R PRABHU STEEL INDUSTRIES LTD S 5000 37.35
24/9/2009 509715 JAYSHRE TEA OPG SECURITIES P LTD B 216562 310.43
24/9/2009 509715 JAYSHRE TEA OPG SECURITIES P LTD S 216562 310.56
24/9/2009 533103 JINDALCOTEX TRANSGLOBAL SECURITIES LTD. B 293289 86.40
24/9/2009 533103 JINDALCOTEX TRANSGLOBAL SECURITIES LTD. S 293289 86.27
24/9/2009 500233 KAJARIA CERA ACETYLENE TREXIM PVT LTD S 373015 40.16
24/9/2009 500243 KIR OIL ENG KIRLOSKAR SYSTEMS LIMITED S 2291000 111.75
24/9/2009 500245 KIRL FERE IN ATUL CHANDRAKANT KIRLOSKAR B 1216667 23.80
24/9/2009 500245 KIRL FERE IN RAHUL CHANDRAKANT KIRLOSKAR B 1216667 23.80
24/9/2009 500245 KIRL FERE IN GAUTAM ACHYUT KULKARNI B 1216666 23.80
24/9/2009 500245 KIRL FERE IN KIRLOSKAR SYSTEMS LIMITED S 3650000 23.80
24/9/2009 531602 KOFF BR PICT KISHORE B CHAUHAN S 400000 2.69
24/9/2009 531602 KOFF BR PICT BHAVESH PRAKASH PABARI S 365663 2.50
24/9/2009 508306 LEDO TEA COM VEENA SHANTILAL GANDHI B 7500 73.55
24/9/2009 502893 NEEMTEK ORG DUKE SPECIAL OPPORTUNITIES FUND LLC S 10000 116.95
24/9/2009 513121 ORICON ENT NINA SUNIL DALAL S 50000 149.09
24/9/2009 511702 PARSHART INV HITESH SHASHIKANT JHAVERI B 20428 19.14
24/9/2009 511702 PARSHART INV ASHLESH GUNVANTBHAI SHAH S 19000 18.73
24/9/2009 590077 RANKLIN SOLU NIBU KRISHNAN B 30000 39.95
24/9/2009 524218 RESONANCE DIPAKK SHAH B 100000 25.29
24/9/2009 531646 RFL INTERNAT NILESH KRUSHNA PALANDE B 169499 1.68
24/9/2009 531646 RFL INTERNAT MAHESH RAMANLAL SHAH B 30000 1.66
24/9/2009 531646 RFL INTERNAT SUDARSHAN VISHWANATH THOPATE B 50000 1.69
24/9/2009 531646 RFL INTERNAT UNIVERSAL CREDIT B 114000 1.68
24/9/2009 531646 RFL INTERNAT VORA JIGEN RASIKLAL HUF S 300000 1.68
24/9/2009 531646 RFL INTERNAT NILESH KRUSHNA PALANDE S 89000 1.66
24/9/2009 530461 SABOO SOD CH JMP SECURITIES PVT LTD B 69602 11.48
24/9/2009 530461 SABOO SOD CH NEHA UMESH DHRUVA S 146071 11.15
24/9/2009 506172 SAMPADA CHEM THE PREMIER COMMERCIAL COPVT LTD S 52000 24.38
24/9/2009 532293 SOFT TECH GR JAGDISH HIROO BHARWANI B 124000 8.86
24/9/2009 532293 SOFT TECH GR SHALINI DHOOP P. LTD S 200907 8.87
24/9/2009 526133 SUPERTEX IND PRADIPBHAI RAJNIKANTRAI THATHA B 100000 45.68
24/9/2009 526133 SUPERTEX IND SHAISHIL TUSHARKUMAR JHAVERI S 54907 45.59
24/9/2009 531703 TRIBHVAN HSG AKSHAYE VINOD KHANNA S 55000 21.00
24/9/2009 590091 TRINETHRA IN SHINY GEORGE JOSEPH B 200033 27.91
24/9/2009 590091 TRINETHRA IN NARASIMHARAO MANDAVALLI B 233900 28.02
24/9/2009 590091 TRINETHRA IN SHINY GEORGE JOSEPH S 200033 28.03
24/9/2009 590091 TRINETHRA IN PRIYA VIJAY PATIL S 177500 27.94
24/9/2009 524264 UNIMER INDIA JAYPEE CAPITAL SERVICES LIMITED B 304088 12.72
24/9/2009 503657 VEER ENERGY AANGI SHARES & SERVICES PVT. LTD. B 277705 22.47
24/9/2009 503657 VEER ENERGY AANGI SHARES & SERVICES PVT. LTD. S 277705 22.12
24/9/2009 532795 WIRE& WIRLES MAHALAXMI BROKERAGE (INDIA) PRIVATE LIMITED B 1088122 22.02
24/9/2009 532795 WIRE& WIRLES TRANSGLOBAL SECURITIES LTD. B 2704758 22.43
24/9/2009 532795 WIRE& WIRLES TRANSGLOBAL SECURITIES LTD. S 2664758 22.42
24/9/2009 511601 YASH MANA SA DHANNALAL ARVINDKUMAR JAIN S 61437 11.01
NSE Bulk Deals to Watch - Sep 24 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
23-SEP-2009,CORDSCABLE,Cords Cable Industries Li,JHAWAR DEO KISHAN,BUY,60000,47.19,-
23-SEP-2009,DHANBANK,The Dhanalakshmi Bank Ltd,SATYEN KANORIA,BUY,347646,166.03,-
23-SEP-2009,FCSSOFT,FCS Software Solutions Li,PUMARTH INFRASTRUCTURE PVT. LTD.,BUY,75000,82.01,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,BP FINTRADE PRIVATE LIMITED,BUY,214223,99.66,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,CPR CAPITAL SERVICES LTD.,BUY,160100,99.67,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,DINESH MUNJAL(HUF),BUY,182654,97.65,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,DKG SECURITIES PVT. LTD.,BUY,350000,108.07,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,G K SHARES AND SECURITIES PRIVATE LIMITED,BUY,123224,98.17,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,GENUINE STOCK BROKERS PVT LTD,BUY,211286,98.61,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,HARBUX SINGH SIDHU,BUY,136774,94.06,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,IDFC MUTUAL FUND,BUY,200000,99.03,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,436350,99.34,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,KANUDIA CAPITAL & MANAGEMENT SERVICES PVT. LTD.,BUY,388592,94.98,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,MANIPUT INVESTMENTS PVT. LTD.,BUY,111281,103.20,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,MANSUKH SECURITIES & FINANCE LIMITED,BUY,227577,102.92,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,MARWADI SHARES AND FINANCE LIMITED,BUY,175556,100.32,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,OM INVESTMENTS,BUY,105829,105.25,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,R APPALA RAJU,BUY,110000,99.92,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,R.M. SHARE TRADING PVT LTD,BUY,419379,99.63,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,SANJAY BHANWARLAL JAIN,BUY,167787,95.69,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,SMITA M PATEL,BUY,103851,97.53,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,TOUCHSTONE FINVEST SERVICES PRIVATE LIMITED,BUY,237111,104.83,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,TRANSGLOBAL SECURITIES LTD.,BUY,535078,100.83,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,VAIBHAV DOSHI,BUY,90012,97.88,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,VIJETA BROKING INDIA PRIVATE LIMITED,BUY,117237,102.46,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,YES INVESTMENTS VISHAL KISHORE BHATIA,BUY,100200,96.44,-
23-SEP-2009,HARRMALAYA,Harrisons Malayalam Ltd,JAIN SONAL RAHUL,BUY,103000,120.67,-
23-SEP-2009,HARRMALAYA,Harrisons Malayalam Ltd,NIKON FINLEASE PVT. LTD,BUY,100573,127.48,-
23-SEP-2009,HARRMALAYA,Harrisons Malayalam Ltd,OM INVESTMENTS,BUY,206288,129.31,-
23-SEP-2009,HARRMALAYA,Harrisons Malayalam Ltd,SMART EQUITY BROKERS PRIVATE LIMITED,BUY,107665,129.97,-
23-SEP-2009,JAYSREETEA,Jayashree Tea Ltd.,MBL & COMPANY LTD.,BUY,99100,293.90,-
23-SEP-2009,JAYSREETEA,Jayashree Tea Ltd.,NIKON FINLEASE PVT. LTD,BUY,78936,293.15,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,AANGI SHARES & SERVICES PVT. LTD,BUY,195665,90.04,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,DINESH KISHORCHAND MEHTA HUF,BUY,160504,88.81,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,125857,91.21,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,JAMEELA AMEER ABDULKHADER,BUY,224930,90.17,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,243804,92.53,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,MANSUKH SECURITIES & FINANCE LIMITED,BUY,146601,90.96,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,OM INVESTMENTS,BUY,199363,91.23,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,RAMESHCHNADRA DALI CHAND VASANI - HUF,BUY,192305,88.29,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,SHAH HEMANSHU RAMNIKLAL,BUY,175464,92.59,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,525445,91.03,-
23-SEP-2009,JPASSOCIAT,Jaiprakash Associates Lim,HSBC GLOBAL EMERGING MARKETS EQUITY FUND,BUY,11200510,238.00,-
23-SEP-2009,ORBITCORP,Orbit Corporation Limited,KUWAIT INV AUTHORITY- KUWAIT INV -FUND 205,BUY,617920,232.64,-
23-SEP-2009,TANLA,Tanla Solutions Limited,KUWAIT INV AUTHORITY-KUWAIT INV -FUND 205,BUY,2536022,73.01,-
23-SEP-2009,TATAMTRDVR,Tata Motors DVR 'A' Ord,PRU INDIA EQUITY OPEN LTD,BUY,513617,439.02,-
23-SEP-2009,WWIL,Wire and Wireless (India),TRANSGLOBAL SECURITIES LTD.,BUY,1216828,21.86,-
23-SEP-2009,ASAHIINDIA,Asahi India Glass Limited,CREDIT SUISSE (SINGAPORE) LIMITED A/C CREDIT SUISSE (SINGAP,SELL,1184953,59.39,-
23-SEP-2009,CORDSCABLE,Cords Cable Industries Li,JHAWAR DEO KISHAN,SELL,60000,48.96,-
23-SEP-2009,DHANBANK,The Dhanalakshmi Bank Ltd,SATYEN KANORIA,SELL,347940,166.34,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,BP FINTRADE PRIVATE LIMITED,SELL,214223,99.44,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,CENTRAL BANK OF INDIA,SELL,199990,105.27,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,CONCEPT COMMUNICATION LTD,SELL,188588,91.78,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,CPR CAPITAL SERVICES LTD.,SELL,160100,99.74,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,DINESH MUNJAL(HUF),SELL,182654,97.32,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,DKG SECURITIES PVT. LTD.,SELL,350000,101.93,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,G K SHARES AND SECURITIES PRIVATE LIMITED,SELL,123224,98.37,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,GENUINE STOCK BROKERS PVT LTD,SELL,211286,99.19,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,HARBUX SINGH SIDHU,SELL,131774,93.93,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,INDIA MAX INVESTMENT FUND LTD,SELL,742607,103.53,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,436350,99.54,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,KANUDIA CAPITAL & MANAGEMENT SERVICES PVT. LTD.,SELL,388592,94.91,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,MANIPUT INVESTMENTS PVT. LTD.,SELL,111281,103.30,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,MANSUKH SECURITIES & FINANCE LIMITED,SELL,227577,103.25,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,MARWADI SHARES AND FINANCE LIMITED,SELL,175556,101.09,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,OM INVESTMENTS,SELL,105829,105.38,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,R APPALA RAJU,SELL,110000,101.32,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,R.M. SHARE TRADING PVT LTD,SELL,419379,100.17,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,SANJAY BHANWARLAL JAIN,SELL,167787,95.46,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,SMITA M PATEL,SELL,103851,98.09,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,TOUCHSTONE FINVEST SERVICES PRIVATE LIMITED,SELL,237111,101.48,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,TRANSGLOBAL SECURITIES LTD.,SELL,532772,100.97,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,VAIBHAV DOSHI,SELL,109321,100.15,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,VIJETA BROKING INDIA PRIVATE LIMITED,SELL,117237,103.09,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,VINIYOGA COMMERCIAL PVT.LTD.,SELL,297296,100.49,-
23-SEP-2009,GLOBUSSPR,Globus Spirits Limited,YES INVESTMENTS VISHAL KISHORE BHATIA,SELL,100200,101.53,-
23-SEP-2009,HARRMALAYA,Harrisons Malayalam Ltd,JAIN SONAL RAHUL,SELL,6117,130.19,-
23-SEP-2009,HARRMALAYA,Harrisons Malayalam Ltd,NIKON FINLEASE PVT. LTD,SELL,100573,127.56,-
23-SEP-2009,HARRMALAYA,Harrisons Malayalam Ltd,OM INVESTMENTS,SELL,206288,129.45,-
23-SEP-2009,HARRMALAYA,Harrisons Malayalam Ltd,SMART EQUITY BROKERS PRIVATE LIMITED,SELL,106165,130.28,-
23-SEP-2009,JAYSREETEA,Jayashree Tea Ltd.,MBL & COMPANY LTD.,SELL,99100,294.21,-
23-SEP-2009,JAYSREETEA,Jayashree Tea Ltd.,NIKON FINLEASE PVT. LTD,SELL,78936,293.44,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,AANGI SHARES & SERVICES PVT. LTD,SELL,225665,90.76,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,DINESH KISHORCHAND MEHTA HUF,SELL,160504,89.66,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,125857,91.25,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,JAMEELA AMEER ABDULKHADER,SELL,224930,88.12,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,243804,92.50,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,MANSUKH SECURITIES & FINANCE LIMITED,SELL,146601,91.27,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,OM INVESTMENTS,SELL,199363,91.32,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,RAMESHCHNADRA DALI CHAND VASANI - HUF,SELL,192305,88.66,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,SHAH HEMANSHU RAMNIKLAL,SELL,175464,93.49,-
23-SEP-2009,JINDCOT,Jindal Cotex Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,525445,91.23,-
23-SEP-2009,JPASSOCIAT,Jaiprakash Associates Lim,JCL TRUST,SELL,10000000,238.51,-
23-SEP-2009,JPASSOCIAT,Jaiprakash Associates Lim,JEL TRUST,SELL,10000000,238.40,-
23-SEP-2009,JPASSOCIAT,Jaiprakash Associates Lim,JHL TRUST,SELL,10000000,238.07,-
23-SEP-2009,SUZLON,Suzlon Energy Limited,BRIJ JITENDRA TANTI,SELL,18500000,96.86,-
23-SEP-2009,TATAMTRDVR,Tata Motors DVR 'A' Ord,Tata Sons Ltd,SELL,910284,439.45,-
23-SEP-2009,WWIL,Wire and Wireless (India),TRANSGLOBAL SECURITIES LTD.,SELL,1216828,21.83,-
Post Session Commentary - Sep 24 2009
Domestic market bounced back from initial losses to close with marginal gains on buying sentiment emerged during final trading. Earlier, benchmark indices continued to trade in negative tracking weak cues from global markets. In addition, lower US index futures also fueled the negative sentiments. However, market minimized its losses during final trading hours and stocks witnessed little upswing despite negative cues from European stocks. Meanwhile, India''s inflation rose 0.37%for week-ended 12th September as against 0.12% of the earlier week. The BSE Sensex ended above 16,750 level and NSE Nifty closed above 4,950 mark.
The domestic market opened on weak note mirroring unfavorable cues from the global markets. The US stock market closed lower on Wednesday after opening on flat note. The Fed''s comment that economic activity was picking up, contributed to buying initially and sent stocks to their best levels of the year. However, the stocks were unable to sustain the same momentum and rolled over and closed at session lows. FOMC leaves fed funds unchanged, according to expectation, as economic activity has picked up. Further, Indian benchmark indices continued to trade in negative without any sign of recovery on profit booking. Investors were cautious also on the last session of monthly expiry in the derivatives segment. However, market finally rebounded from lows and turned positive, as the traders remained optimistic about robust corporate quarterly earnings. From the sectoral front, Bank, Pharma, FMCG, Realty and PSU stocks contributed to most of the buying. BSE Mid Caps and Small Caps stocks were also able to gain favour from the market. However, IT, Metal, Consumer Durable and Auto stocks witnessed most of the selling from these baskets.
Among the Sensex pack 18 stocks ended in green territory and 12 in red territory. The market breadth indicating the overall health of the market remained positive as 1466 stocks closed in green while 1289 stocks closed in red and 85 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 61.93 or (0.37%) points at 16,781.43 and NSE Nifty ended marginally up by 16.60 points or (0.33%) at 4,986.55. BSE Mid Caps and Small Caps closed with gains of 45.68 and 33.74 points at 6,186.51 and 7,382.77 respectively. The BSE Sensex touched intraday high of 16,834.10 and intraday low of 16,494.92.
Gainers from the BSE Sensex pack are HDFC (3.39%), HDFC Bank (3.39%), Wipro Ltd (2.21%), RCom (2.14%), NTPC Ltd (1.97%), ICICI Bank (1.74%), Bharti Airtel (1.42%), L&T Ltd (1.40%), TCS Ltd (1.38%), JP Associates (1.28%) and Sun Pharma (1.08%).
Losers from the BSE Sensex pack are Hincalco (3.98%), Infosys Tech (3.40%), Herohonda Motors (1.59%), Tata Steel (1.41%), ACC Ltd (1.30%), Maruti Suzuki (1.17%), ONGC Ltd (1.08%), BHEL (0.98%), Sterlite Industries (0.83%) and Tata Motors (0.82%).
India''s inflation for week-ended 12th September rose 0.37% as against 0.12% of the earlier week. The wholesale price-based inflation stood at 12.42% during the corresponding week a year ago. The rise is mainly attributed to increase in prices of essential food items. Among items that got costlier during the week include mutton, spices, wheat, maize, sugar, mustard oil and gur. The wholesale price index (WPI) for all commodities has increased 0.2% at 242.6 on week-on-week (WoW) basis.
On the global markets front, the Asian markets that opened before the Indian market, ended mostly lower tracking Wall Street losses overnight. Hang Seng, Singapore''s Straits 2,667.43 and 1,693.88 respectively. However, Shanghai Composite and Nikkei 225 ended with gains of 10.83 and 173.68 points at 2,853.55 and 10,544.22 respectively. In Japan, investors cheered with the news that news that exports tumbled 36% in August from a year earlier
European markets, which opened after the Indian market, are trading down on profit taking after several days with gains. In addition, sharp decline in commodity prices also weigh on the sentiments. In Paris the CAC 40 is lower 8.35 points at 3,813.44, in Frankfurt DAX index is trading down 15.51 points at 5,686.54 and in London FTSE 100 is trading lower 9.43 points at 5,129.94.
The BSE Bank index ended up by (1.48%) or 139.52 points at 9,543.42 as Karnataka Bank (4.24%), HDFC Bank (3.39%), Allahabad Bank (2.59%), IDBI Bank (1.98%) and ICICI Bank (1.74%) ended in green.
Strong comeback at tail end
Taking lead from weak global markets, the 30-stock Sensex of the BSE started the day with a pessimistic note--85 points lower at the opening bell.
The index remained subdued during the major part of the day and traded more than 200 points lower, as investors booked profits. Metal and IT stocks took the major beating. The index faltered by afternoon and slipped to the day's low of 14,494.92--224 points below the previous close. While the market fluctuated sharply thereafter, firm bullish sentiment and strong buying in heavyweights stocks in late trades helped the Sensex erase its losses. The Sensex finally ended the session 0.37% or 61 points up at 16,781.43. Nifty was up by 11 points at 4,986.55.
The market breadth was positive, as 52% stocks (1,470 stocks) advanced and 45% stocks (1,285 stocks) declined. Around 3% stocks (85 stocks) ended unchanged. Eight of the 13 sectoral indices ended in green. BSE Bankex advanced 1.48%, BSE HC was up 0.91%, BSE FMCG jumped 0.73% and BSE Realty gained 0.67%. However, BSE IT dropped 1.59% followed by BSE Metal that was down 1.13% and BSE Teck declining by 0.77%.
Among gainers, HDFC jumped 3.39% at Rs2743.15, HDFC Bank gained 3.39% at Rs1,622.10, Wipro soared 2.21% at Rs578.95 and Reliance Communications rose by 2.14% at Rs304.80, while National Thermal Power Corporation, ICICI Bank, Bharti Airtel, Larsen & Toubro, Tata Consultancy Services, Jaiprakash Associates and Sun Pharmaceutical Industries gained more than 1% each. However, Hindalco Industries slipped 3.98% to Rs129.00, Infosys Technologies slumped 3.40% to Rs2285.10, Hero Honda shed 1.59% to quote Rs1,652.60, Tata Steel lost 1.41% to trade at Rs520.50, ACC declined 1.30% to Rs824.40, Maruti Suzuki India dropped 1.17% to Rs1,633.05 and ONGC was down 1.08% to Rs1,148.70.
On turnover front, over 1.31 crore Suzlon Energy shares changed hands on the BSE followed by Ispat Industries (1.05 crore shares), Unitech (84.41 lakh shares), IFCI (71.51 lakh shares) and UCO Bank (60.66 lakh shares).
Sensex jumps 285 points from the day's low
Buying resumed on the bourses today after Wednesday's (23 September 2009)'s slide that followed a rally in the preceding five days. But volatility ruled the roost as traders rolled over derivatives contracts from September 2009 series to October 2009 series ahead of today's expiry of September 2009 contracts. Recovery in US index futures aided a strong intraday rebound on the domestic bourses in late trade.
Index heavyweight Reliance Industries (RIL) reversed losses in choppy late trade soon after the company announced during trading hours that it has signed a gas supply pact with NTPC. Banking, realty and FMCG stocks jumped. The BSE 30-share Sensex rose 61.93 points or 0.37%, up about 285 points from the day's low and off close to 55 points from the day's high.
The S&P CNX Nifty settled below the psychological 5,000 mark after crossing that level in intraday trade. Nifty had fallen below the 5,000 mark on Wednesday after closing above that mark on Tuesday for the first time in 16 months.
Intraday volatility was high. The market edged lower amid a bout of early volatility on subdued Asian stocks. It cut losses after hitting a fresh intraday day low in morning trade. The intraday recovery gathered steam in early afternoon trade on recovery in Chinese stocks. The market weakened again in afternoon trade on weak European stocks and lower US index futures. The market moved in a narrow range in mid-afternoon trade. In a trend reversal, the key benchmark indices reversed losses in late trade.
Rollover in S&P CNX Nifty futures surged to about 55% at the end of Wednesday's trading from about 36% at end of Tuesday's (22 September 2009) trading. Rollover in Mini Nifty futures was about 43%.
Global stocks were mostly in the red on concerns the US Federal Reserve may act earlier than expected to unwind some of its extraordinary stimulus measures.
Closer home, investors are worried that a glut in share sales may suck liquidity from the secondary market. The corporate sector has raised large sums of money through equity and equity related instruments in the past six months or so to either to retire high cost debt or to fund expansion. The supply of paper by Indian firms appear limitless, raising concerns that additional share sales will suck liquidity from the secondary market.
As per one report, companies plan to raise at least Rs 40,000 crore through initial public offers (IPOs)/follow on public offers (FPOs) in the second half of the current financial year. Power companies such as GMR Energy, Indiabulls Power and JSW Energy and state-run Bharat Heavy Electricals and NTPC are likely to tap the primary market. Reliance Infratel also announced on Tuesday, 22 September 2009, its intention to raise Rs 5,000 crore from the primary market. A number of companies are also in the fray to raise funds by way of qualified institutional placement (QIP), reports suggest.
Three Indian firms and in one case promoters of a company raised about Rs 3000 crore in a single day on Wednesday, 23 September 2009. Majority of the fund raising was routed through share sale in the secondary markets through the stock exchanges mechanism.
Meanwhile, Indian companies and individuals have also started borrowing from banks to build factories, buy cars and homes, taking advantage of low interest rates, another sign that economic growth may accelerate. The uptick is reflected in the latest data unveiled by the Reserve Bank of India. Bank loans aggregated Rs 56,303 crore more in Q2 (July-11 September 2009) compared to a drop of Rs 7456 crore in Q1 (April-June 2009).
The Asian Development Bank (ADB) on Tuesday, 22 September 2009, raised its forecast for India's economic growth this year by 1 percentage point to 6%. On Wednesday, Finance Minister Pranab Mukherjee said India's economic growth in the September 2009 quarter will be better than in the June 2009 quarter. The economy grew an annual 6.1% in the April-June quarter, the first of 2009/10 fiscal year.
Mukherjee had said on Saturday, 19 September 2009, that the Centre will not roll back the stimulus package given to the industry in wake of the global economic meltdown till signs of clear recovery are visible across recession-hit US and Europe. The Finance Minister also said on that day that the nation's equities index is moving steadily and authorities will avoid disturbing the pattern.
India's exports fell an annual 19.7 % in August 2009, as the global slump hit demand for Indian goods, Trade Minister Anand Sharma said after market hours on Thursday.
Nevertheless, there is optimism about Q2 September 2009 results after advance tax collections registered a positive growth in the second quarter after witnessing a negative growth in the first quarter. Corporate advance tax and advance personal income-tax were up by 14.7% and 1.7%, respectively in the September 2009 quarter. Higher advance tax payment indicates good Q2 September 2009 results from India Inc. next month.
India's headline inflation rate rose for the second straight week, data released by the government during trading hours today showed. Inflation based on the wholesale price index rose 0.37% in the year through 12 September 2009, higher than previous week's gain of 0.12%. The food article index was responsible for the rise in inflation. The index surged 15.64%.
The government revised upwards headline inflation for the week ended 18 July 2009 to a fall of 0.54% from a provisional decline of 1.54%.
Meanwhile, the world economy is likely to be the focus of a two-day G20 financial summit in Pittsburgh that begins today. The G20 leaders will discuss overhauling global financial regulation and fixing long-term imbalances in the world economy. The G20 leaders are also considering ways to rein in bank bonuses that many say contributed to the global financial crisis by encouraging excessive risk-taking. Bank bonuses are part of the G20 agenda to consider ways to reshape global financial rules after the 2008-2009 crisis.
European shares fell on Thursday, with lower crude prices weighing on energy stocks. Bank share were also under pressure. Key benchmark indices in France, Germany and UK were down by between 0.23% to 0.3%. A closely-watched gauge of German business sentiment posted a smaller-than-expected rise in September 2009.
Asian shares were mixed. China shares rose 0.38% on Thursday, reversing losses earlier in the day, on the back of gains in financial stocks. Japanese stocks which opened today after a long holiday rose 1.67% as brokerages upgraded Toshiba Corp. and Fast Retailing Co.
But commodity stocks led other Asian markets lower after raw-material prices declined. Key benchmark indices in Hong Kong, South Korea, Singapore and Taiwan were down by between 0.71% to 2.52%.
US index futures fell in volatile trade. Trading in US index futures indicated Dow could fall 14 points at the opening bell today, 24 September 2009.
US market fell on Wednesday as investors worried the Federal Reserve is closer to pulling back on extraordinary measures to inject funding to shore up the economy. The Dow Jones industrial average fell 80.79 points, or 0.82 % to 9,749.08. The Standard & Poor's 500 Index lost 10.77 points, or 1% to 1,060.89. The Nasdaq Composite Index gave up 14.88 points, or 0.69 % at 2,131.42.
The Federal Reserve's policy-setters on Wednesday kept interest rates unchanged, as expected, but they also said the US central bank would slow purchases of mortgage debt to extend that program's life until the end of March 2010. That was seen as a step toward a measured withdrawal of its extraordinary support for the economy during the downturn.
The BSE 30-share Sensex rose 61.93 points or 0.37% to 16781.43. The Sensex rose 114.60 points at the day's high of 16,834.10 in late trade. The barometer index fell 224.58 points at the day's low of 16,494.92 in morning trade.
The S&P CNX Nifty rose 16.60 points or 0.33% to 4,986.55. It hit a high of 5016.70 in late trade. Nifty October 2009 futures were at 5002 at a premium of 15.45 points as compared to the spot closing of 4986.55. Turnover in NSE's futures & options (F&O) segment spurted to Rs 1,16,850.34 crore from Rs 91,178.35 crore on Wednesday, 23 September 2009.
BSE clocked turnover of Rs 5363 crore, lower than Rs 6741.80 crore on Wednesday, 23 September 2009.
The BSE 30-share Sensex fell 166.93 points or 0.99% to 16719.50 on Wednesday 23 September 2009. The Sensex had jumped 672.24 points or 4.14% in five trading sessions to 16886.43 on Tuesday 22 September 2009 from a recent low of 16,214.19 on 14 September 2009 to 16886.43 on Tuesday 22 September 2009. The Sensex is up 7,134.12 points or 73.94% in calendar year 2009 as on 24 September 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8,621.03 points or 105.64% as on 24 September 2009. FII inflow in the calendar year 2009 totaled Rs 51,059.10 crore (till 22 September 2009).
Coming back to today's trade, the BSE Mid-Cap index rose 0.74% and the BSE Small-Cap index rose 0.46%. Both the indices outperformed the Sensex.
The BSE Bankex (up 1.48%), the BSE Healthcare index (up 0.91%), the BSE FMCG index (up 0.73%), the BSE Realty index (up 0.67%), the BSE PSU index (up 0.44%), the BSE Capital Goods index (up 0.39%), outperformed the Sensex.
The BSE IT index (down 1.49%), the BSE Metal index (down 1.13%), the BSE Consumer Durables index (down 0.77%), the BSE Auto index (down 0.67%), the BSE Teck index (down 0.57%), the BSE Oil & Gas index (up 0.02%), the BSE Power index (up 0.34%), underperformed the Sensex.
The market breadth, indicating the overall health of the market turned positive in contrast to a weak breadth earlier in the day. On BSE, 1,460 shares rose as compared with 1,289 that declined. A total of 85 shares remained unchanged.
Among the 30-member Sensex pack, 18 rose and rest fell.
Index heavyweight Reliance Industries (RIL) rose 0.14% to Rs 2,104.40, rebounding from the day's low of Rs 2,058.60 after the company said it has signed gas supply agreement with state-run utility NTPC to supply gas for some of its power plants for five years. Reliance will supply 0.61 million standard cubic metres a day (mscmd) to NTPC, and expects to start supplies within a week. NTPC rose 1.97%.
Meanwhile, recent report suggest the outlook for Asian oil refiners, previously hit by a sharp fall in margins, is now improving on a likely ramp-up in demand and slowing capacity expansion.
RIL stock was under pressure late last week following a large treasury share sale by the company in the secondary market. Petroleum Trust on Thursday sold 1.5 crore equity shares of RIL through block deals on the bourses at Rs 2125 per share. The financial impact of the transaction will be reflected in the consolidated statements, RIL said.
Reliance Industries on Tuesday said that it has fixed 29 September 2009 as the record date for shareholders of Reliance Petroleum (RPL) to receive equity shares of Reliance Industries under a merger scheme.
Oil exploration stocks fell as oil prices tumbled on Wednesday after a US government showed a surprise increase in crude stock piles. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) fell 1.08%. ONGC on Wednesday said it will invest over Rs 5000 crore in the next two years in bringing new oil and gas finds into production, even as it projected a 15% rise in crude production to 29 million tonnes by 2012-13. Cairn India fell 1.47%. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.
PSU OMCs rose as fall in crude oil prices will reduce underrecoveries on domestic sale of petrol, diesel, kerosene and LPG at controlled prices. HPCL and BPCL rose by between 1.64% to 3.19%. Indian Oil Corporation (IOC) rose 1.5%. The company's board approved a liberal 1:1 bonus issue on 14 September 2009. Crude oil for November 2009 delivery fell $2.79, or nearly 4%, to settle at $68.97 a barrel on Wednesday.
The government last week issued bonds worth over Rs 10,306 crore to three oil marketing PSUs to compensate them for the losses incurred on account of selling petroleum products below market price. While bonds worth Rs 6,207.06 were issued to IOC, Rs 2,033.99 crore worth bonds were given to HPCL and Rs 2,065.28 crore worth of bonds were given to BPCL.
India's largest telecom player by sales Bharti Airtel rose 1.42%. Finance minister Pranab Mukherjee said on Wednesday that the Indian government backs the proposed merger of Bharti Airtel and South Africa's MTN Group and it was looking into legal aspects related to a dual listing.
Bharti Airtel on Tuesday said that the merger talks with South African major MTN will be compliant with the laws in both countries. The company said that it will approach relevant authorities for approvals or exemptions, if required, at the appropriate time. Stock market regulator Securities & Exchange Board of India's (Sebi) amendment in takeover norms on Tuesday whereby the applicability of takeover norms has been extended to GDRs/ADRs, may make fructification of the Bharti-MTN merger deal difficult.
Bharti and 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.
India's second largest telecom player by sales Reliance Communications rose 2.14%. The company's chairman Anil Ambani at the annual general meeting held on Tuesday, 22 September 2009 said company hopes to achieve 100 million subscribers by March 2010 from the current 85 million subscribers.
Anil Ambani also said that the company will consider a qualified institutional placement at an appropriate time. He added that Reliance Communication (RCom)'s capital expenditure may decline significantly this year following the rollout of its GSM network in 2008/09. Meanwhile, the company on 22 September 2009, announced that its board approved a proposed listing of its telecom tower unit Reliance Infratel. The net issue will constitute 10% of the post-issue paid-up equity capital of the company.
FMCG pivotals rose on revival of India's annual monsoon since mid-August. FMCG firms derive substantial revenue from the rural sector. Nestle India, Marico, ITC, Hindustan Unilever, Britannia Industries rose by between 0.6% to 2.6%.
India's largest engineering and construction firm by sales Larsen & Toubro rose 1.4% after firm announced during market hours today of winning an order worth more than Rs 2000 crore from GMR Energy.
Among other capital goods stocks, Siemens, SKF India, ABB, Siemens rose by between 0.4% to 1.15%.
Realty stocks reversed early losses on reports demand for residential projects in major cities is picking up on lower home loan rates, property price cuts by developers and a recovery in the job market. Realty market had slumped last year amid a global credit crunch and buyers fearing job losses. DLF, Omaxe, Indiabulls Real Estate and Unitech, rose by between 0.22% to 2.08%.
Banking stocks reversed early losses on higher advance tax payment by some top banks in the second installment this fiscal. India's largest private sector bank by net profit ICICI Bank rose 1.74% even as its ADR fell 1.26% on Wednesday. The bank has reportedly finalised sale of Point Of Sale (PoS) terminals to First Data Corporation for $ 80 million.
India's largest bank by net profit and branch network State Bank of India rose 0.75%. Chairman O.P. Bhatt on 8 September 2009 said the bank's earnings are likely to grow 30-35% in Q2 September 2009 over Q2 September 2008.
India's second largest private sector bank by net profit HDFC Bank rose 3.39%. Its ADR rose 0.64% on Wednesday.
Shares of select public sector banks rose on recent reports the World Bank is likely to provide $2 billion, or nearly Rs 10000 crore, to the government to recapitalise public sector banks. Union Bank of India, Bank of Baroda, Punjab National Bank, rose by between 0.43% to 1.6%.
India's largest dedicated housing finance firm by revenue HDFC jumped 3.39% on expectations of good Q2 September results. HDFC has reportedly paid advance tax of Rs 320 crore in the second installment of 15 September 2009 compared to Rs 290 crore in the same period a year ago.
Some IT stocks reversed early losses. India's third largest software services exporter by sales Wipro rose 2.21% to Rs 578.95. The stock came off the day's low of Rs 560 on reports company has won a three-year IT services contract from Aquarion Water Company, one of the largest water utilities in the United States.
Meanwhile, some media reports suggest that Wipro plans to explore options to sell its development centre in France due to extensive employee protests against shutting it down. The centre employs about 60 people.
India's largest IT exporter by sales Tata Consultancy Services rose 1.38%. TCS has secured a five-year Rs 140-crore project to build and operate a state-wide area network in southern Andhra Pradesh state.
But, India's second largest software services exporter by sales Infosys fell 3.4% on concerns of higher expenses after a report it plan to give pay rises and promotions next month.
Metal stocks fell as LMEX, a gauge of six metals traded on the London Metal Exchange fell 1.6% on Wednesday, 22 September 2009. Tata Steel, Steel Authority of India, Jindal Saw, Hindalco Industries, fell by between 1.37% to 3.98%.
India's largest copper maker by sales Sterlite Industries fell 0.83% Sterlite Industries (India) today said a power plant chimney under construction at BALCO, Korba collapsed. Relief and rescue operations are underway with the involvement of the company and the government resources, Vedanta said. Activities in this particular area have been temporarily suspended while existing operations remain unaffected.
Sterlite said on Monday that it would release Grupo Mexico from a potential legal liability of nearly $8 billion if the Indian miner can win control of bankrupt US copper miner Asarco LLC.
In a court document filed on Monday, Sterlite said that if a federal court approves its plan to acquire Asarco over rival bidder Grupo Mexico's offer, it would not hold Grupo Mexico liable for more than about $900 million of liability related to the 2003 transfer of a Peruvian mine. Sterlite, a unit of India-focused mining company Vedanta Resources, has been facing off with Mexican miner Grupo Mexico for acquiring control Asarco, which has been under bankruptcy protection since 2005.
Cement stocks fell on profit taking. ACC, Ambuja Cements, Ultratech Cement fell by between 0.56% to 1.3%. A thrust on the infrastructure sector in the Union Budget 2009-2010 may keep cement demand strong. But cement makers recently cut prices by Rs 3 per 50 kilogram bag in Mumbai.
Construction shares reversed losses as higher government spending on infrastructure sector in the Union Budget 2009-2010 to provide a stimulus to the economy, may result in increase order flow for construction. Hindustan Construction Company, Gammon India, Gayatri Projects, Era Infra Engineering rose by between 1% to 3.24%.
The government has set a target of spending $20 billion a year on road construction.
Jaiprakash Associates rose 1.28%, recovering from Wednesday's fall. The company on Wednesday raised around Rs 1,190 crore through sale of 5 crore treasury shares in bulk deals.
Auto stocks fell on profit taking after recent sharp gains. Auto stocks have rallied in the past few days on hopes of strong sales in the upcoming festive season. India's top small car maker by sales Maruti Suzuki fell 1.17%. India's largest tractor maker by sales Mahindra & Mahindra fell 0.51%. India's largest motorbike maker by sales Hero Honda Motors fell 1.59%.
As per reports, the government will release pay arrears to government employees under the second and final installment ahead of big festivals in October 2009. The payout would boost demand for cars and motorcycles.
India's largest truck maker by sales Tata Motors fell 0.82%. Tata Motors said after market hours on Thursday it is to consolidate two Jaguar Land Rover (JLR) auto plants in central England by 2014.The company said there would be no compulsory redundancies, and it is in talks about a significant new model development programme which could create new jobs. Commercial vehicle makers reportedly plan to raise prices in the range of 1-3% on pick up demand.
Domestic car sales rose 26% to 120,669 units in August 2009 over August 2008 boosted by new launches and availability of cheaper loans, data released by the industry body Society of Indian Automobile Manufacturers on 8 September 2009, showed. Sales of trucks and buses rose 18.5% to 40,624 units and motorcycle sales rose 26% to 611,173 units.
Tyre stocks rose on strong replacement demand. MRF, Apollo Tyres, JK Tyre & Industries, CEAT rose by between 0.09% to 9.71%.
Sugar stocks rose even as farm minister Sharad Pawar today said the government will extend permission for tax-free imports of white sugar beyond November 2009. The move is aimed at keeping a lid on prices of the commodity which have risen sharply due to fall in production. Shree Renuka Sugars, Dhampur Sugars, Bajaj Hindustan and Balrampur Chini rose by between 0.7% to 1.81%.
Union Cabinet late last week extended limits on stocks that can be held by traders of sugar until September 2010.
Cals Refineries clocked highest volume of 18.07 crore shares on BSE. Wire & Wireless (2.09 crore shares), Suzlon Energy (1.31 crore shares), Ispat Industries (1.05 crore shares) and Unitech (0.84 crore shares) were other volume toppers in that order.
Educomp Solutions clocked highest turnover of Rs 167.37 crore on BSE. Reliance Industries (Rs 151.90 crore), Tata Steel (Rs 126.01 crore), AIA Engineering (Rs 122.36 crore) and Suzlon Energy (Rs 121.21 crore) were other turnover toppers in that order.
Oil India Grey Market Premiums - Euro Multivision
| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) |
| Oil | 1050 | 32 to 33 | -- |
| Pipavav Shipyard | 58 | 2 to 3 | -- |
| Thinksoft Global | 120 to 130 | 4 to 2 | 1600 to 1675 |
| Euro Multi Vision | 70 to 75 | 4 to 5 | 1500 to 1550 |
Pre Session Commentary - Sep 24 2009
Today domestic markets are likely to open negative as majority of Asian markets have opened with blood bath on the back of overnight selling in US markets. The F&O expiry today and further rollover would decide the movement of benchmark indices. The sentiments at this peak levels are fragile and therefore any upward movement will be tested by profit booking pressures. Today domestic markets are likely to trade negative.
On Wednesday, domestic markets ended with losses thereby halting the consecutive gains of the past six trading days. Markets opened on a flat note due to lack of cues from other global markets. Asian markets were trading on a subdued note as well and there was no driving news in the domestic arena that could bring some charm in trading. However as the trading progressed, profit booking pressures slaughtered stocks from Realty, CG, IT and FMCG baskets. JP Associates felt the blaze after the company exchanged around 45.4 million of shares in block deals in early trade. The deals were in a price range of Rs 239.75-244.80 a share. Further the company plans to raise up to $200 million through share sales which are the treasury shares created after the company absorbed its units Jaypee Hotels, Jaypee Cement and Gujarat Anjan Cement etc.
The BSE Sensex closed lower by 166.93 or (0.99%) points at 16,719.50 and NSE Nifty ended down by 50.25 points or (1%) at 4,969.95. BSE Mid Caps and Small Caps closed with losses of 76.16 and 101.99 points at 6,140.83 and 7,349.03 respectively. The BSE Sensex touched intraday high of 16,905.58 and intraday low of 16,683.78.
On Wednesday, US markets closed lower. Market participants were active ahead of the FOMC policy statement and therefore buying sentiments spurred across broader level. However despite Fed’s statement that the economic activity has picked up since its severe downturn stocks could not hold on its firmness at this peak level. The session closed with worst loss since the beginning of this month. Telecom stocks outperformed for the entire session with a remarkable gain of 1.6%. On the other hand, due to bearish oil inventory data, energy stocks traded the entire session in the negative terrain and closed with a loss of 1.9%. Financial sector was the worst performing as it closed with a severe loss of 2.1%. At the macro economic level, the Fed kept its key rate unchanged at 0.00% to 0.25%. The FOMC said it will purchase $1.25 trillion of agency mortgage backed securities and $200 billion agency debt. However it will gradually slow the pace of purchases to promote a smooth transition in markets. Crude oil futures for the month of November delivery closed lower by 3.9% at $68.99 per barrel on New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed lower by 81.32 points at 9,748.55. NASDAQ index fell by 14.88 points at 2,131.42 and the S&P 500 (SPX) declined by 10.79 points to close at 1,060.87 points.
Today the major stock markets in Asia are trading negative. Hang Seng index is trading low by 560.46 points at 21,035.06. However, Japan''s Nikkei is up by 131.45 points at 10,501.99, Singapore''s Straits slipped 18.50 points at 2,667.44 and Taiwan Weighted is trading low by 62.71 points at 7,314.05.
The FIIs on Wednesday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 3,208.40 Crore and gross debt purchased stood at Rs 359.50 Crore, while the gross equity sold stood at Rs 1,704.90 Crore and gross debt sold stood at Rs 494.80 Crore. Therefore, the net investment of equity and debt reported were Rs 1,503.50 Crore and Rs (135.40) Crore respectively.
On Wednesday, Indian Rupee closed at 48.02/03 per dollar, 0.17% stronger than its previous close at 47.95/96. Late selling pressure in the local stock markets pulled the local currency.
On BSE, total number of shares traded were 56.79 Crore and total turnover stood at Rs 6,741.80 Crore. On NSE, total number of shares traded were 94.93 Crore and total turnover was Rs 17,554.24 Crore.
Top traded volumes on NSE Nifty – Suzlon Energy with total volume traded 64445982 shares, followed by Unitech with 35147212, DLF with 12825522, Bharti Airtel with 8653344 and Tata Steel with 7530923 shares.
On NSE Future and Options, total number of contracts traded in index futures was 836388 with a total turnover of Rs 20,419.47 Crore. Along with this total number of contracts traded in stock futures were 1016348 with a total turnover of Rs 33,204.84 crore. Total numbers of contracts for index options were 1425402 with a total turnover of Rs 35,420.33 Crore and total numbers of contracts for stock options were 63310 and notional turnover was Rs 2,133.71 Crore.
Today, Nifty would have a support at 4,887 and resistance at 4,992 and BSE Sensex has support at 16,568 and resistance at 16,796.
Daily News Roundup - Sep 24 2009
Infosys, TCS and Wipro to dole out raises and promotions. (ET)
ONGC’s new fields to pop out oil by mid 2010. (ET)
NTPC inks deal to buy part of KG gas at US$4.2/mmBtu. (ET)
Real estate developers such as Unitech, DLF and HDIL have started hiring again. (ET)
25 channels of Zee Network will air ads only of brands that belong to HUL’s portfolio of personal and skin care categories. (ET)
Vedanta Resources has hiked Sesa Goa holding by 2.1% through open market purchases. (BL)
Jet Airways has sought permission to sell shares to overseas investors as it may not be able to raise funds here. (ET)
ONGC to spend Rs50bn on east coast fields. (BS)
Wipro plans to explore options to sell its development centre in France. (ET)
TCS bags Rs1.4bn Andhra Pradesh government SWAN project. (ET)
Suzlon Energy promoters raise Rs6.78bn from 4.5% stake sale. (ET)
Cipla mops up Rs6.71bn through QIP. (ET)
Jaiprakash Associates raises Rs11.9bn via treasury shares sale. (ET)
JSW Energy to set up 2,400MW thermal power plant in Gujarat. (FE)
Gammon Infra may raise Rs5bn through QIP. (ET)
Raymond plans to sell stake in apparel, engineering arms to PE investors. (ET)
Kingfisher plans to raise up to US$175mn before March 2010 via rights issue and GDR. (ET)
3i Infotech raises Rs3.18bn via QIP. (ET)
UTV sends legal notices to Adlabs and UFO Moviez, demanding compensation of Rs500mn. (ET)
Ispat Industries to spend Rs26bn on expansion over next two years. (BL)
Corporation Bank targets 22% loan growth in the current fiscal. (BL)
Gitanjali Group to foray into apparel business. (FE)
Adhunik Metaliks to foray into power sector. (BS)
Wireless subscribers base increase by 15mn in the month of August 2009. (BS)
India’s external debt stood at US$229.9bn at March-end 2009. (ET)
SEBI may allow mutual funds units to be traded on exchanges. (BS)
Government approves Rs3.93bn FDI proposals. (BS)
Tea likely to get agri commodity status; eGoM to take a call. (FE)
Government mulls pharmacy chain in Nigeria to counter fake drugs. (BL)
Swing to the beats of F&O and festivities
Being happy doesn't mean that everything is perfect. It means that you've decided to look beyond the imperfections.
Some seem to be getting the perfect festival bonanza with Top IT companies doling out generous pay hikes and promotions. Last week, the Government had announced a hike in DA. The real estate industry has also resumed hiring. India Inc.’s fund raising binge continues. Bank lending has seen a pick up in Q2. FIIs remain bullish on India and have pumped $10bn already. The demons over the aftereffects of drought have been pretty much exorcised.
Globally too, things have improved quite a bit with the Dow nearing 10,000. Central banks are in no hurry to start reversing their extraordinary stimulus steps. Overall business-cum-investment sentiment is upbeat and risk appetite is back.
Today we expect a slightly lower opening due to weak global cues. The usual wild swing associated with F&O expiry would be there. Overall, we maintain our cautiously optimistic stance.
Among the concerns are with regard to inflation, though most central banks are willing to ignore it for a while. The other challenge will be to unwind the expansionary monetary and fiscal stimulus. Valuations too are not cheap, especially when promoters of large firms are selling.
Wind could blow in favor of companies like Suzlon with the US Treasury releasing USD 550 million towards cash grants for renewable energy.
US stocks closed down on Wednesday, notwithstanding the positive undercurrent in the FOMC statement. The key indices came off their one-year peaks as investors locked in some profit after the Fed policymakers decided to hold interest rates steady and kept the economic outlook relatively unchanged.
The Dow Jones Industrial Average lost 81 points, or 0.8%, to 9,748.55. The Dow ended the previous session at the highest point since Oct. 6, 2008. The S&P 500 index fell 10 points, or 1%, at 1,060.87 after ending the previous session at the highest level since Oct. 3.
The Nasdaq Composite index fell 14 points, or 0.7%, to 2,131.42 after finishing the previous session at the highest mark since last Sept. 26.
The major US indexes have repeatedly closed at near one-year highs over the past two weeks. Better earnings reports from Corporate America should give the rally another push.
Since bottoming at a 12-year low March 9, the S&P 500 has gained 56.8% and the Dow has gained 48.9%, as of Wednesday's close. After hitting a six-year low, the Nasdaq has gained 68%. Stocks have risen during this period on signs that the economy is slowly starting to recover, and on extraordinary amounts of fiscal and monetary stimulus.
US stocks initially rallied after the FOMC announcement, but failed to hold on to those gains. A milder-than-expected response to a government auction of $40 billion in five-year notes also contributed to the late declines.
The Federal Reserve kept the fed funds rate, a key short-term bank lending rate, at a level near zero, as expected. The announcement was made at the end of its two-day policy meeting. In the statement, the bankers said that "economic activity has picked up following its severe downturn. Conditions in financial markets have improved further, and activity in the housing sector has increased."
But the FOMC also noted that consumer spending has remained under pressure due to the rough jobs market and still-tight credit conditions. Last week, Federal Reserve chief Ben Bernanke said that the recession was very likely over, but the labor market still has a long way to go. The Fed policymakers reiterated that it was likely to keep the fed funds rate at the historic lows for the foreseeable future.
Investors were also looking for more on how the Fed plans to eventually wind down programs that have pumped as much as $1 trillion into the economy to cushion the blow of the recession. To that end, the Fed said it will stretch its purchases of $1.25 trillion of mortgage-backed securities from Freddie Mac and Fannie Mae through the end of the first quarter of 2010. Previously, the program was set to end through Dec. 31.
American Airlines and US Airways Group both slipped after announcing plans to raise cash, dragging down the whole airline sector.
American said it has priced its offering of 48.5 million shares of common stock, as well as $400 million in 5-year notes, with both offerings due to close Monday. The two sales should give American about $770.5 million after fees and expenses. American parent AMR fell 7.8%.
US Airways Group said it will sell 26.3 million shares of its common stock to Citigroup, the offering's underwriter, with the sale due to close Monday. US Airways fell 13.6%. The NYSE Arca Airline index lost 2%.
General Mills reported higher quarterly earnings that topped forecasts and boosted its full-year outlook, due to strong sales of Cheerios, Trix and its other cereal brands. Shares rose over 4%.
Treasury Secretary Timothy Geithner told a House committee that U.S. economic growth appears to be picking up, but that reforms must be enacted to fix a broken system. He was testifying at a House Financial Services committee hearing on regulatory reform.
At least one million people could be eligible for an additional 13 weeks of unemployment benefits, following a House of Representatives bill approved Tuesday night. The Senate is expected to take up the issue soon, although it faces some questions about how it should be funded.
The dollar held on to gains versus the yen and euro following the Fed announcement. The greenback had touched a fresh one-year low against a basket of currencies in the morning. The strength in the dollar dragged on dollar-traded oil and gold prices.
US light crude oil for October delivery fell $2.79 to settle at $68.97 a barrel on the New York Mercantile Exchange, dropping after a government report showed a big jump in weekly crude supplies.
COMEX gold for December delivery fell $1.10 to settle at $1,014.40 an ounce. Gold closed at a record high of $1,020.20 last week.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.41% from 3.44% late on Tuesday.
Thursday brings the weekly jobless claims report from the Labor Department and the existing home sales report from the National Association of Realtors (NAR).
Also, the G-20 summit in Pittsburgh begins on Thursday. The Group of 20 leading developed and emerging countries will discuss the ongoing efforts to stabilize economies after the financial market meltdown.
In Europe, the pan-European Dow Jones Stoxx 600 index, which basically see-sawed during the first two days of the week, edged up 0.2% to 244.54.
Minutes from the last Bank of England meeting that were released Wednesday suggest the UK central bank will stay on the sidelines until at least November.
The German DAX slipped 0.1% to 5,702.05, the UK's FTSE 100 weakened 0.1% to 5,139.37 and the French CAC 40 closed flat at 3,821.79.Indian markets took a pause for the first time in last 12 trading sessions with the NSE Nifty closing below the 5,000 mark. It was an absolute lackluster day of trades as key indices continued to struggle for any specific direction.
Markets players were in a limbo on account of mixed global cues, uncertain external environment and F&O expiry. Traders also seemed to be waiting for the Fed policymakers’ verdict, the meet would end later today (US time).
The late slide was led by the Realty, Telecom and the IT stocks. Even the Mid-Cap and the Small-Cap stocks weren’t spared.
The BSE Sensex fell 166 points or 1% at 16,719 after touching a high of 16,905 and a low of 16,838. The index opened at 16,905 against the previous close of 16,886. The NSE Nifty slipped 50 points to shut shop at 4,969.
In Asia, the Nikkei in Japan was shut while Australia's S&P/ASX ended higher by 1.5% at 4,734. Shanghai SE Composite in China fell by 2.8% at 2,842. However, the Hang Seng index in Hong Kong ended lower 0.5% at 21,595.
In Europe, stocks were in the green. The FTSE in the UK was up 0.4%, The DAX in Germany was up 0.2% and the CAC 40 index in France gained 0.2%.
Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, shedding 2.3%, followed by the Teck index that was down 2%. The BSE IT index down 1.7% and the BSE Capital Goods index was down 1.5%.
The BSE Mid-Cap index fell 1.2% and the BSE Small-Cap index was down 1.3%.
Among the 30-components of Sensex, 25 stocks ended in the red and 5 ended in the positive terrain. Among the major laggards were JP Associates, Bharti Airtel, RCom, M&M and Hindustan Unilever.
On the other hand, HDFC Bank, Sterlite, Sun Pharma and ONGC were among the major gainers.
Outside the frontline indices, the big losers in the broader market were P&G, Tulip, Gujarat NRE, LITL, APIL and Indian Bank. On the other hand, gainers included IOB, Central Bank, Piramal Health, Federal Bank, UCO Bank and Ashok Leyland.
Shares of Suzlon Energy slipped by 6% to Rs94.6 after promoters of the company sold ~70mn equity shares at an average price of Rs98.4 per share.
The company has managed to raise ~Rs6.89bn selling ~50mn on the BSE and ~20mn on the NSE. Citi Bank was the sole banker for the deal. After selling 4.5% stake, promoter’s stake is reduced to 53.08%
Shares of JP Associates dropped by over 6% to Rs234 after the company sold ~40mn treasury stocks in the open market at an average price of Rs238.5 per share.
The company managed to raise ~Rs9.54bn through the deal. Bank of America Merrill Lynch was the banker for the transaction. The stock opened at Rs247 and made an intra-day high of Rs247.7 and a low of Rs232. Total traded volumes stood at 40.13mn equity shares on NSE.
Jindal Cotex which had a decent debut on Dalal-Street has further extended gains for the second straight trading session on Wednesday. The stock further clocked in gains of 1% to Rs87. Jindal Cotex has now surged over 18% in the past two days.
The company’s IPO was launched on August 27, 2009 with a public issue of 1, 24, 53,894 equity shares of face value of Rs10/- each with price band of Rs70 to Rs75 per share, was subscribed 2.19 times.
The company plans to use the proceeds of the issue mainly for entering into technical textile space through investment in wholly owned subsidiaries viz., Jindal Medicot Limited (JML) and Jindal Specialty Textiles Limited (JSTL).
Opto Circuits wholly-owned US-based subsidiary, Criticare Systems Inc. (CSI), has signed a strategic long term agreement with a European manufacturer and distributor of medical equipment.
The agreement involves the supply of private label patient monitoring systems by CSI to the partner as well as cooperation in sales and distribution of anaesthetic gas delivery products in several key markets, both in the United States and Europe.
Shares of Opto Circuit were down by 1% to end at Rs198. The stock opened at Rs202 and made an intra-day high of Rs202 and a low of Rs196. Total traded volumes stood at 0.29mn shares.
Cipla raised US$140mn by selling shares to institutional investors, reports stated. The company sold the shares at an average price of Rs263.75 apiece, added reports.
The company plans to use the proceeds for "capacity expansion," Cipla CEO Amar Lulla said. The share sale is being managed by CLSA Asia-Pacific Markets, JPMorgan Chase & Co. and Kotak Mahindra Capital Co.
Shares of Cipla ended lower by 1.5% to Rs260. The stock opened at Rs266 and made an intra-day high of Rs267 and a low of Rs258. Total traded volumes stood at 0.27mn shares.
Venus Remedies surged by over 4.5% to Rs264 after the company announced that SULBACTOMAX, a research product of Venus Remedies has been successfully out licensed to one of the top 10 Pharma companies in South Korea.
Korean party has been given Exclusive Marketing Rights for the whole life of patent. As per the agreement terms the product will be supplied from Venus Baddi unit, which is accredited with multiple international GMPs. The Company has already initiated product registration process through their collaborators. Commercial supplies are expected to begin early 2011.
Ackruti City plans to raise upto Rs10bn in FY10 by putting its properties on sale. The company has put its BKC office space on the sale and also plans to sell 14 sites on sale in the next 2 months.
Shares of Ackruti rose 1% to end at Rs538. The stock opened at Rs538 and made an intra-day high of Rs554 and a low of Rs535. Total traded volumes stood at 0.16mn shares.
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