India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Tuesday, September 29, 2009
Turnover declines
TCS October 2009 futures at discount
Nifty October 2009 futures were at 4995.80 at a discount of 11.05 points as compared to the spot closing of 5006.85. Turnover in NSE's futures & options (F&O) segment was Rs 45,244.04 crore, sharply lower than Rs 59,792.44 crore on Friday, 25 September 2009.
Volumes were low as traders refrained from building large positions as this week is a truncated trading week. The market remains closed on Friday, 2 October 2009, on account of Gandhi Jayanti. The market had remained closed for a public holiday on Monday, 28 September 2009.
Tata Consultancy Services (TCS) October 2009 futures were at discount at 607.80 compared to the spot closing of 610.05.
Unitech October 2009 futures were at a slight premium at 107.60 compared to the spot closing of 107.10.
State Bank of India October 2009 futures were near spot price at 2095 compared to the spot closing of 2095.70.
In the cash market, the S&P CNX Nifty rose 47.90 points or 0.97% at 5006.85.
BSE Bulk Deals to Watch - Sep 29 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
29/9/2009 524412 AAREY DRUGS KAUSHIK SHAH SHARES & SEC. LTD S 40000 42.04
29/9/2009 517096 APLAB LTD LARSEN & TOUBRO LIMITED S 33596 42.00
29/9/2009 532047 ASIAN FILMS EDELWEISS ESTATES PRIVATE LIMITED S 1450000 0.32
29/9/2009 532406 AVANTEL LTD DHEERAJ KUMAR B 44798 50.20
29/9/2009 532406 AVANTEL LTD MINDSET TECHNOLOGIES PVT LTD S 24499 50.00
29/9/2009 532406 AVANTEL LTD NIRMAL BANG HUF S 29431 50.00
29/9/2009 531337 CHAN GUIDE I KISHOR V GANDHI HUF S 30000 92.03
29/9/2009 532363 COMP-U-LEARN HITESH SHASHIKANT JHAVERI B 70000 21.10
29/9/2009 532783 DAAWAT MAHALAXMI BROKERAGE (INDIA) PRIVATE LIMITED B 244752 80.44
29/9/2009 532783 DAAWAT TRANSGLOBAL SECURITIES LTD. B 218697 81.86
29/9/2009 532783 DAAWAT KANCHAN CHHABRA B 527255 78.46
29/9/2009 532783 DAAWAT OPG SECURITIES P LTD B 228490 82.05
29/9/2009 532783 DAAWAT MAHALAXMI BROKERAGE (INDIA) PRIVATE LIMITED S 249251 79.86
29/9/2009 532783 DAAWAT TRANSGLOBAL SECURITIES LTD. S 218697 81.68
29/9/2009 532783 DAAWAT KANCHAN CHHABRA S 527255 79.79
29/9/2009 532783 DAAWAT OPG SECURITIES P LTD S 228490 82.02
29/9/2009 530323 ERA INFRA RELIANCE CAPITAL TRUSTEE CO LTD AC RELIANCE INFRASTRUCTURE FUND B 5000000 145.00
29/9/2009 530323 ERA INFRA CORONATION BUILDERS AND ENGINEERS PRIVATE LTD. B 839000 166.89
29/9/2009 530323 ERA INFRA RELIANCE MUTUAL FUND A/C LONGTERM EQUITY FUND B 2000000 145.00
29/9/2009 530323 ERA INFRA ANGELIC CONSTRUCTION PRIVATE LIMITED S 2500000 145.00
29/9/2009 530323 ERA INFRA ANTIQUE TEXFAB PRIVATE LIMITED S 1300000 145.19
29/9/2009 530323 ERA INFRA MARIGOLD PROMOTERS PRIVATE LTD. S 1200000 145.00
29/9/2009 530323 ERA INFRA VICTORY REALTECH PVT. LTD. S 5000000 145.05
29/9/2009 532666 FCS SOFTWARE PROMETHEUS E SERVICES PRIVATE LIMITED B 172000 87.38
29/9/2009 531486 FILMCIT MEDI WELLNESS COMMUNICATION (P) LTD S 1396576 1.02
29/9/2009 509684 INDIA FOILS SAINATH HERBAL CARE MARKETING P.LTD B 300159 16.83
29/9/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 50678 5.31
29/9/2009 533103 JINDALCOTEX OPG SECURITIES P LTD B 191380 84.88
29/9/2009 533103 JINDALCOTEX OPG SECURITIES P LTD S 191380 84.82
29/9/2009 524826 JUPITER BIOS PRABHUDAS LILLADHER P LTD. B 79036 92.74
29/9/2009 524826 JUPITER BIOS DYNAMIC STOCK BROKING INDIA PVT LTD B 274017 91.97
29/9/2009 524826 JUPITER BIOS MANISH VRAJLAL SARVAIYA B 699399 92.21
29/9/2009 524826 JUPITER BIOS PRABHUDAS LILLADHER P LTD. S 79036 92.80
29/9/2009 524826 JUPITER BIOS DYNAMIC STOCK BROKING INDIA PVT LTD S 274017 92.09
29/9/2009 524826 JUPITER BIOS MANISH VRAJLAL SARVAIYA S 699399 93.05
29/9/2009 504076 JYOTI LIMITE HITESH SHASHIKANT JHAVERI B 69421 50.40
29/9/2009 531602 KOFF BR PICT DARSHANA NAHAR B 500000 2.22
29/9/2009 531602 KOFF BR PICT PATHIKNAYAN BHAI SHAH S 717121 2.02
29/9/2009 531602 KOFF BR PICT BHAVESH PRAKASH PABARI S 500000 2.07
29/9/2009 531602 KOFF BR PICT HEMANT MADHUSUDAN SHETH S 450000 2.02
29/9/2009 531602 KOFF BR PICT BHAVESH PRAKASH PABARI S 550000 2.02
29/9/2009 531602 KOFF BR PICT SHAILENDRA SHANTILAL NAHAR S 400000 2.26
29/9/2009 508306 LEDO TEA COM VEENA SHANTILAL GANDHI B 8000 71.75
29/9/2009 508306 LEDO TEA COM VEENA SHANTILAL GANDHI S 6000 71.88
29/9/2009 532740 LOKESH MACH PRITESH BIPIN PATEL B 232329 52.85
29/9/2009 532740 LOKESH MACH PRITESH BIPIN PATEL S 232329 52.96
29/9/2009 511276 MEFCOM AGR I HITESH RAMJI JAVERI B 16288 4.37
29/9/2009 523670 NOIDA MEDI C HITESH SHASHIKANT JHAVERI B 70502 17.82
29/9/2009 523670 NOIDA MEDI C HITESH SHASHIKANT JHAVERI S 52443 17.81
29/9/2009 513121 ORICON ENT NINA SUNIL DALAL S 138000 151.63
29/9/2009 504093 PANA ENERG NEHA UMESH DHRUVA B 47671 76.43
29/9/2009 511702 PARSHART INV SUSMITABEN PRADIPBHAI PATEL B 100000 20.50
29/9/2009 511702 PARSHART INV PRADIPBHAI RAMBHAI PATEL B 47451 20.97
29/9/2009 511702 PARSHART INV SHIVA INVESTMENTS S 16000 20.50
29/9/2009 511702 PARSHART INV HEENA DEEPAK VIRWANI S 25000 21.02
29/9/2009 511702 PARSHART INV SONI KRUPA SANJAY S 27013 20.50
29/9/2009 531855 PRABHAV IND DHARMENDRA LILARAM SAWLANI B 50000 21.78
29/9/2009 511652 RAM KAASHYAP SETU SECURITIES PVT LTD B 29200 14.81
29/9/2009 511652 RAM KAASHYAP PUNJABI JYOTIBEN B 65900 14.97
29/9/2009 511652 RAM KAASHYAP KOKILABEN N JADAV S 25000 15.05
29/9/2009 511652 RAM KAASHYAP SUBHKARAN TILOKCHAND AGARWAL S 57900 14.98
29/9/2009 590077 RANKLIN SOLU NIBU KRISHNAN S 55455 38.04
29/9/2009 503162 REL CHEMO IN RAKESHBHAI AMULAKHBHAI MEHTA S 19869 39.41
29/9/2009 531646 RFL INTERNAT NILESH KRUSHNA PALANDE B 86500 1.71
29/9/2009 501154 ROSE INVESTM ANJANA DHANKUMAR SHETH B 500 7.35
29/9/2009 501154 ROSE INVESTM PANKAJ ARORA S 500 7.35
29/9/2009 530461 SABOO SOD CH NEHA UMESH DHRUVA S 104659 11.49
29/9/2009 531312 SANRAA JMP SECURITIES PVT LTD B 3600001 1.11
29/9/2009 531312 SANRAA MAVI INCESTMENT FUND LIMITED(GDR) S 4075948 1.11
29/9/2009 532344 SOFTSOL INDI* SOFTSOL INDIA LTD B 496471 54.89
29/9/2009 532344 SOFTSOL INDI* P V S RAJU S 200000 55.00
29/9/2009 532344 SOFTSOL INDI* ADVENT ADVISORY SERVICES PVT LTD S 100000 54.90
29/9/2009 532344 SOFTSOL INDI* SANJAYKUMAR JAGDISHPRASAD PODDAR S 100000 54.90
29/9/2009 590005 TIDEWATERDM-PMS HITESH SHASHIKANT JHAVERI B 4481 5190.56
29/9/2009 590093 TRIMURTHI DR ARVIND SHAH B 47075 46.00
29/9/2009 590093 TRIMURTHI DR UMA C RANI S 70000 46.12
29/9/2009 503657 VEER ENERGY AANGI SHARES & SERVICES PVT. LTD. S 352666 21.72
NSE Bulk Deals to Watch - Sep 29 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
29-SEP-2009,DAAWAT,LT Foods Limited,KANCHAN CHHABRA,BUY,162136,75.97,-
29-SEP-2009,DAAWAT,LT Foods Limited,MAHALAXMI BROKRAGE INDIA PRIVATE LIMITED,BUY,277727,79.57,-
29-SEP-2009,DAAWAT,LT Foods Limited,OM INVESTMENTS,BUY,316286,81.04,-
29-SEP-2009,DAAWAT,LT Foods Limited,SAVEREY PADMANABHA RAO BALAKRISHNAN,BUY,260123,80.87,-
29-SEP-2009,DAAWAT,LT Foods Limited,TRANSGLOBAL SECURITIES LTD.,BUY,219384,81.35,-
29-SEP-2009,DSKULKARNI,DS Kulkarni Dev. Ltd.,SECOND LEASING PRIVATE LIMITED,BUY,200834,65.77,-
29-SEP-2009,EVERONN,Everonn Education Limited,MANISH VRAJLAL SARVAIYA,BUY,149971,417.59,-
29-SEP-2009,FAME,Fame India Limited,BP FINTRADE PRIVATE LIMITED,BUY,195092,32.44,-
29-SEP-2009,FAME,Fame India Limited,SETU SECURITIES LTD,BUY,209012,32.45,-
29-SEP-2009,FAME,Fame India Limited,THIRDWAVE BUSINESS AIDS PVT. LTD.,BUY,197000,31.86,-
29-SEP-2009,FCSSOFT,FCS Software Solutions Li,PROMETHEUS E-SERVICES PRIVATE LIMITED,BUY,172000,87.38,-
29-SEP-2009,GEMINI,Gemini Communication Limi,AYODHYAPATI INVESTMENT PVT.LTD,BUY,622000,19.35,-
29-SEP-2009,GLORY,Glory Polyfilms Limited,ANKITA VISHAL SHAH,BUY,119749,27.38,-
29-SEP-2009,GLORY,Glory Polyfilms Limited,KSHITIJ-PORTFOLIO-PVT.-LTD.,BUY,83824,26.77,-
29-SEP-2009,HGSL,Hinduja Global Sols Ltd,HINDUJA TMT LTD,BUY,199212,512.01,-
29-SEP-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,6466745,23.44,-
29-SEP-2009,LOKESHMACH,LOKESH MACHINES LIMITED,BP FINTRADE PRIVATE LIMITED,BUY,83260,53.36,-
29-SEP-2009,LOKESHMACH,LOKESH MACHINES LIMITED,PATEL PRITESH BIPIN,BUY,200565,52.29,-
29-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,JAYPEE CAPITAL SERVICES LTD.,BUY,354929,179.24,-
29-SEP-2009,ZYLOG,Zylog Systems Limited,STHITHI INSURANCE SERVICES PRIVATE LIMITED,BUY,116102,330.15,-
29-SEP-2009,DAAWAT,LT Foods Limited,KANCHAN CHHABRA,SELL,162136,75.98,-
29-SEP-2009,DAAWAT,LT Foods Limited,MAHALAXMI BROKRAGE INDIA PRIVATE LIMITED,SELL,277873,80.13,-
29-SEP-2009,DAAWAT,LT Foods Limited,OM INVESTMENTS,SELL,316286,81.11,-
29-SEP-2009,DAAWAT,LT Foods Limited,SAVEREY PADMANABHA RAO BALAKRISHNAN,SELL,260123,80.49,-
29-SEP-2009,DAAWAT,LT Foods Limited,TRANSGLOBAL SECURITIES LTD.,SELL,214384,81.66,-
29-SEP-2009,DSKULKARNI,DS Kulkarni Dev. Ltd.,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,234509,65.85,-
29-SEP-2009,EVERONN,Everonn Education Limited,MANISH VRAJLAL SARVAIYA,SELL,149971,416.39,-
29-SEP-2009,FAME,Fame India Limited,BP FINTRADE PRIVATE LIMITED,SELL,158114,32.20,-
29-SEP-2009,FAME,Fame India Limited,SETU SECURITIES LTD,SELL,247611,32.12,-
29-SEP-2009,GLORY,Glory Polyfilms Limited,ANKITA VISHAL SHAH,SELL,73744,27.07,-
29-SEP-2009,GLORY,Glory Polyfilms Limited,KSHITIJ-PORTFOLIO-PVT.-LTD.,SELL,133824,26.80,-
29-SEP-2009,HGSL,Hinduja Global Sols Ltd,INVEST INDIA MAURITIUS LIMITED,SELL,200000,512.00,-
29-SEP-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,5776995,23.45,-
29-SEP-2009,LOKESHMACH,LOKESH MACHINES LIMITED,BP FINTRADE PRIVATE LIMITED,SELL,81242,53.42,-
29-SEP-2009,LOKESHMACH,LOKESH MACHINES LIMITED,PATEL PRITESH BIPIN,SELL,200565,52.81,-
29-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,JAYPEE CAPITAL SERVICES LTD.,SELL,363329,179.37,-
29-SEP-2009,ZYLOG,Zylog Systems Limited,STHITHI INSURANCE SERVICES PRIVATE LIMITED,SELL,116102,329.37,-
Post Session Commentary - Sep 29 2009
Indian market extended its initial gains to close higher a wave of merger-and-acquisition activity in US market, glimmered a rally in Asian Stocks. . Further, stocks raised also on sustained buying sentiments. Though, stocks pared some of its gains during afternoon trading as some profit booking emerged due to settlement issue, as the banks will remain closed tomorrow due to half yearly book closure. However, the markets managed to regain its momentum despite negative European stocks. In addition, benchmark indices witnessed a bit of volatility ahead of the closing of the market on coming Friday (Oct 2, 2009) due to celebration of the Gandhi Jayanti. The BSE Sensex ended above 16,800 level and NSE Nifty closed above 5,000 mark.
The market opened today on pleasant note along with all other Asian counter parts. Asian stocks were firm and the US stock market closed higher on Monday on the back of some merger-and-acquisition activity that boosted sentiments. Xerox Corporation has agreed to buy Affiliated Computer Services Inc. for about $5.75 billion in cash and stock. Tech stocks were mostly higher, with the Nasdaq outperformed the broader indices. Further, Indian benchmark indices continued hold gains on significant buying over the counters. Besides, stocks witnessed a bit of volatility and pared gains during early afternoon trade before regaining strength again. Finally, market closed with gains tracking positive cues from Asian stocks. From the sectoral front, IT, Phrma, Teck, Oil & Gas, Consumer Durables and Bank stocks contributed to most of the buying. BSE Mid Caps and Small Caps stocks also followed the same trend. However, Realty stocks witnessed most of the selling from its baskets.
Among the Sensex pack 19 stocks ended in green territory and 11 in red territory. The market breadth indicating the overall health of the market remained positive as 1660 stocks closed in green while 1104 stocks closed in red and 88 stocks remained unchanged in BSE.
As per provisional figures, the BSE Sensex closed higher by 159.91 or (0.96%) points at 16852.91 and NSE Nifty ended up by 47.90 points or (0.97%) at 5,006.85. BSE Mid Caps and Small Caps closed with gains of 37.87 and 69.34 points at 6,264.80 and 7,519.59 respectively. The BSE Sensex touched intraday high of 16,907.84 and intraday low of 16,802.80.
Gainers from the BSE Sensex pack are Sun Pharma (6.09%), TCS Ltd (3.98%), ICICI Bank (3.12%), Wipro Ltd (2.71%), ONGC Ltd (2.49%), Infosys Tech (1.89%), Tata Power (1.80%), Reliance (1.70%), HUL (1.25%), BHEL (1.22%), Tata Steel (1.13%) and Bharti Airtel (1.09%).
Losers from the BSE Sensex pack are SBI (2.26%), Reliance (1.60%), JP Associates (1.35%), RCom (0.60%), Tata Motors (0.35%) and ACC Ltd (0.34%).
On the global markets front, the Asian markets that opened before the Indian market, ended mostly higher as investors are bullish tracking cues from Wall Street. Hang Seng, Nikkei 225, Singapore''s Straits and Seoul Composite ended higher by 424.76, 90.68, 34.06 and 14.5 points at 21,013.17, 10,100.20, 2,663.31 and 1,690.05 respectively. However, Shanghai Composite lost 8.99 points at 2,754.54.
European markets, which opened after the Indian market, are trading down on profit taking following Monday''s rally. In Paris the CAC 40 is lower 15.45 points at 3,809.55, in Frankfurt DAX index is trading down 28.18 points at 5,708.13 and in London FTSE 100 is trading lower by 13.12 points at 5,152.58.
The BSE IT index ended higher by (2.26%) or 99.85 points at 4,513.31 on hopes of a revival in US economy. Main gainers are Patni Computer (5.50%), Mphasis Ltd (5.23%), TCS Ltd (3.98%), Oracle Fin (3.01%) and NIIT Ltd (2.94%).
The BSE Pharma index gained (1.63%) or 70.17 points 4,379.66. Gainers are Dishman Pharma (9.78%), IPCA Lab (6.15%), Sun Pharma (6.09%), Sunpha Adv (4.76%) and Cipla Ltd (4.73%).
The BSE Teck index closed higher by (1.59%) 50.50 points at 3,227.47. Gainers are Patni Computer (5.50%), Mphasis Ltd (5.23%), TCS Ltd (3.98%), NIIT Ltd (2.94%) and Wipro Ltd (2.71%).
The BSE Oil & Gas index advanced by (1.52%) or 155.5 points at 10,395.65. Gainers are Essar Oil Ltd (2.88%), ONGC Ltd (2.49%), Gail India (2.25%), Reliance (1.70%) and RNRL (1.09%).
The BSE Consumer Durable index ended up by (1.35%) or 46.98 points at 3,516.41, as Videocon Ind (2.88%), Blue Star L (1.49%), Titan Ind (0.66%), Gitanjali GE (0.59%) and Rajesh Export (0.20%) ended in green.
The BSE Realty index decreased by (0.65%) or 28.87 points at 4,446.06. Losers are Pheonix Mill (2.69%), Ackruti (2.40%), Penland Ltd (1.87%), Unitech Ltd (1.60%) and Parsvnath (1.11%).
Tata Consultancy Services rose 3.98% after the company secured a contract from Carnation Auto for providing end-to-end system integration services.
Aurobindo Pharma Limited ended higher by 1.16%. The company has received "Outstanding Export Performance Award" for the year 2008-09 from Pharmaceuticals Export Promotion Council of India set up by Ministry of Commerce & Industry, Government of India (Pharmexcil) at the recent Indo-Africa Pharma Business Meet in Hyderabad.
MindTree Ltd. closed up by 4.20%. The company announced that it has signed an agreement with Kyocera Wireless Corp. (KWC) to acquire Kyocera Wireless (India) Pvt. Ltd., its Indian subsidiary. The acquisition is subject to legal and statutory requirements, as well as certain closing conditions.
Lupin Ltd. gained 0.42%. Lupin acquired the product from QscLent Pharmaceuticals on September 25, 2009, under the procedures of the U.S. Bankruptcy Court- Antara recorded net sales of US $ 70 million for 2008 (Source: IMS Dec 2008). Lupin paid S 38.61 million for the product and related assets inclusive of inventory.
L&T Ltd reported rise of 0.11% after company said that its unit got a multi million-dollar contract from Germany''s Infineon Technologies AG.
Religare Technova closed higher by 1.56%. The company announced the launch of its Product Portal - RTGSLive. This is in line with the company’s strategy of introducing domain specific solutions. The portal is a touch-point for organizations looking for such specialized solutions and will help them in gathering of information as well as quicken the decision making process by enabling faster purchase. The site provides a high level view of each product, which is displayed for the customers benefit to allow better understanding and faster decision making. RTGSlive.com also showcases the strengths of the technology organization and the breadth of its domain expertise and product offering.
Market upbeat
The market displayed positive trend all through the session today. Taking firm cues from firm Asian indices, as US market, the Sensex opened 136 points higher at 16829 and rallied to touch the day's high of 16908 on buying in information technology (IT) and oil & gas stocks. It however remained range-bound with positive bias thereafter. Towards the close, the Sensex ended the session at 16853, up 160 points. Nifty was at 5007 at closing bell, up 48 points.
Advancing shares outnumbered declining shares today. Of the total 2,852 stocks traded on BSE, where 1,660 stocks advanced, 1,104 stocks declined. 88 stocks ended unchanged. Broadly speaking, IT, oil & gas, Teck stocks posted gains while health care, consumer durables and banking stocks posted marginal gains. Realty bourses posted losses for the day. While auto and metal indexes were down marginally.
Heavyweights witnessed strong buying interest. Sun Pharmaceutical Industries soared 6.09% to Rs1,390.85, Tata Consultancy Services rose 3.98% to Rs610.40, ICICI Bank was up by 3.12% to Rs864.80, Wipro jumped 2.71% to Rs582.50, ONGC added 2.49% to trade at Rs1,186.15, while Infosys Technologies, Tata Power, Reliance Industries, Hindustan Unilever, Bharat Heavy Electricals, Tata Steel and Bharti Airtel registered gains of 1-2%. However, State Bank of India slipped 2.26% to Rs2,090.85, Grasim Industries lost 1.60% to quote at Rs2,788.80, Jaiprakash Associates was down 1.35% to trade at Rs234.15, while Reliance Communications, Tata Motors and ACC moved marginally down.
Ispat Industries was most traded share with over 1.32 crore shares changing hands on the BSE followed by IFCI (1.14 crore shares), Suzlon Energy (0.98 crore shares), IDBI Bank (0.97 crore shares) and GTL Infrastructure (0.90 crore shares)
Asian markets swing back to gains
Hang Seng, Taiex, Sydney, Sensex stand out with gains while Shanghai last lower
Stock market in Asian region rose on Tuesday 29 September 2009, as news of several multi-billion dollar takeovers bids overseas boosted confidence in global economic recovery, while the yen dipped after Tokyo refused to rule out currency intervention. The yen's retreat from an eight-month high hit on Monday helped Japanese exporters, lifting the Nikkei average by 1%.
On Wall Street, stock markets cheered deal developments and a Cisco upgrade on Monday, while upcoming economic data could pave the way for another volatile week. Technology stocks got a boost as Xerox said it agreed to buy Affiliated Computer Services for $6.4 billion in cash and stock. Affiliated Computer Services surged 14% to $53.86, but Xerox shares slid 14.4% to $7.68. The Dow Jones Industrial Average rose 124.17 points, or 1.3%, to 9789.36, while the S&P 500 ticked up 18.6 points, or 1.8%, to 1062.98. The Nasdaq Composite advanced 39.82 points, or 1.9%, to 2130.74.
In the commodity market, crude oil traded near $67 a barrel in New York, after rising in the past two days; on optimism fuel demand will increase amid improved prospects for an economic recovery in the U.S., the world’s biggest energy consumer.
Crude oil for November delivery traded at $66.89 a barrel, up 5 cents, in electronic trading on the New York Mercantile Exchange at 2:53 p.m. Singapore time. Yesterday, the contract rose 82 cents, or 1.2%, to settle at $66.84 a barrel.
Brent crude oil for November settlement traded at $65.60 a barrel, up 6 cents, on the London-based ICE Futures Europe exchange at 2:54 p.m. in Singapore. Yesterday, the contract gained 43 cents, or 0.7%, to settle at $65.54 a barrel.
Gold, little changed in London today, may decline as a strengthening dollar cuts demand for the metal as an alternative investment. Immediate-delivery bullion added $2.16, or 0.2%, to $993.21 an ounce by 10:04 a.m. local time. December gold futures were 30 cents higher at $994.40 an ounce on the New York Mercantile Exchange’s Comex division.
In the currency market, US Dollar was trading slightly softer in today’s trading.
The Japanese yen continue to retreat after Japan Finance Minister Hirohisa Fujii reversed his rhetoric about strong yen policy and as Asian stocks rebound following strength in US equities. Fujii claimed he never said I would leave the yen to strengthen, insisting that he was misinterpreted as supporting a strong yen policy. Fujii then emphasized if the currency market moves abnormally, we may take necessary steps in the national interest, raising speculations that Japan may intervene to curb the currencies' recent sharp gain. The Japanese yen was quoted at 89.91 against the US dollar, up from 89.56 yen in late trading Monday.
The Hong Kong dollar was trading at HK$ 7.7502 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 jumped over a cent while bill and bond futures were hammered after talk that local interest rate hikes may be raised in November and December resurfaced once more.
The Australian dollar spiked after central bank watcher Terry McCrann wrote the RBA is almost certain to hike rates by 25 basis points each in November and December. He offered no sources, but still the market drove the Aussie up to a local close of $US0.8758, from yesterday’s $US0.8643.
In Wellington trade, the New Zealand dollar found support against a handful of major currencies, was choppy against the greenback. Against the US dollar, the kiwi was up nearly a third of a cent early today to US71.63c from US71.33c yesterday.
The South Korean currency ended at 1,185.9 won against the dollar, down 10 won from Monday's close.
The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.3760, 0.0990 up from Monday’s close of NT$32.4750.
In the Asian equity market, technology and automobile stocks paced a broad rebound in the regional markets, encouraged by strong overnight gains on Wall Street and expectations of improving global demand.
In Japan, the shares market advanced by snapping two days loosing streak, on the back of positive lead from Wall Street overnight and generally softer yen, although gains in the overall market were capped amid concern falling consumer prices will cut corporate revenue and hamper the nation’s recovery from recession. At the closing bell, the Nikkei 225 Stock Average index surged 90.68 points or 0.91%, to 10,100.20, while the broader Topix spurted 1.16 points, or 0.13%, to 904.
On the economic front, the statistics bureau said Japan’s consumer prices excluding fresh food fell at a record 2.4% in August from a year earlier.
In Mainland China, share market finished the session lower enduring losses for third consecutive day in light trade after oscillating above and below the boundary at least 3 times amid persistent worries about the prospects of continue heavy supplies of new shares after an eight-day National Day holiday that starts on 1 October 2009. The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, stumbled 8.98 points, or 0.33%, to 2,754.54, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, edged down 0.01%, to 2,972.29.
In Hong Kong, the stock market snapped out four session of losing streak, with broad based gains across the sector following a strong lead from Wall Street overnight and other Asian bourses. Financials, properties, and telecom stocks outperformed as investors scooped up shares of oversold stocks after big corporate takeovers in the US gave investors a new shot of confidence. Materials and resources gained, helped by rebound in metals prices. The Hang Seng Index surged 424.76 points, or 2.06%, to 21,013.17, while the Hang Seng China Enterprise spurted 235.72 points, or 2.01%, to 11,988.37.
In Australia, the shares market posting solid gains on the back of positive cues from Wall Street overnight and generally firmer commodity prices. Banks and financials stocks outperformed, after a burst of merger and acquisitions activity in the US fuelled investor optimism. Properties stocks benefited amid optimism that an economic recovery would spur demand. Stronger metals prices snapped up shares of Anglo-Australian miners BHP Billiton and Rio Tinto, meanwhile Woodside Petroleum and Oil Search surged due rebound in crude oil prices. Optimism about the economy helped lift the retail sector.
At the closing bell, the benchmark S&P/ASX200 index surged 75.7 points, or 1.62%, to 4,753.1, meanwhile the broader All Ordinaries spurted 70.3 points, or 1.5%, to 4,747.2.
On the economic front, the strength of the Australian economy was underlined by the Federal Government, which reported a deficit of A$27.1 billion for the 2008-09 year against preliminary forecast of A$32.1 billion in the May Federal Budget.
In New Zealand, stock market extended its positive journey for the second day in a row. The share market rose in line with most of the Asian markets. Asian shares pulled higher Tuesday, on the back of Wall Street's gains. In the US stocks rallied yesterday, snapping a three-day losing streak, as a spurt of corporate takeovers in the technology and health-care sectors fuelled optimism about share values. The NZX50 increased 0.77% or 24.21 points to 3155.39. The NZX 15 was up 0.55% or 31.83 points to close at 5792.81.
On the economic front, according to credit reporting agency Dun & Bradstreet (D&B), New Zealand economy is better placed than many but is still at the mercy of an uncertain global economic recovery. Its quarterly Global Economic & Risk Outlook Report said a sustained improvement in the global economic outlook was not yet a certainty. However, the local outlook was more promising, particularly on the back of June quarter GDP figures showing the economy grew by 0.1 percent, the first expansion in six quarters.
In South Korea, stocks finished higher as institutional investors picked up banks and technology stocks following the overnight gains in U.S. markets. The benchmark Korea Composite Stock Price Index (KOSPI) rose 14.5 points or 0.87% to 1,690.05.
In Singapore, stock market buoyed by optimism over the US economy after triple digit gains in Wall Street overnight as a spurt of corporate takeovers in the technology and health-care sectors and positive session in the other Asian bourses. Major banks stocks outperformed, with DBS and OCBC leading the rally following sharp overnight gains on Wall Street. Properties sector benefited from strong gains from the shares of City Developments and CapitaLand. The blue chip Straits Times Index was ended at 2,663.31, gained 34.06 points, or 1.3%.
In Taiwan, stock market traveled to one week high, posting biggest single day gain since the beginning of the month of September, helped by Taiwan Semiconductor Manufacturing Company, after the government said it would allow contract chipmakers and flat-panel companies to acquire rivals in China. The benchmark Taiex share index swirl higher as it finished higher by 145.37 points or 2% in a day, closing the day at 7429.98, logging its biggest single day gain since 1 September 2009 and highest closing level since 22 September 2009.
On the economic front, there were series events happened over the weekend. Taiwan’s unemployment rate shot up to 6.13% in August for an unemployed population of some 672,000 persons, both the highest of their kinds. According to the Cabinet-level Directorate General of Budget, Accounting & Statistics (DGBAS), the number of employed in Taiwan reached 10.285 million, edging up by 27,000 or 0.26% from a month earlier, for the fifth consecutive monthly rise.
On the other hand, Taiwan’s consumer confidence in September rose to its highest level in 15 months, another indication that the Taiwan’s economy may be pulling out of a prolonged slump set off by the global economic crunch.
According to the results of the monthly survey released Monday by National Central University's Research Center for Taiwan's Economic Development (RCTED), the consumer confidence index for September stood at 56.45, up 3.45 points from the August level and the highest since July 2008.
In other news, the export orders received by Taiwan’s manufacturers and traders reached US$28.29 billion in August, declining by US$3.84 billion or 11.96% from that of last year; however, orders from China (including Hong Kong) rose to US$8.55 billion for an annual growth of 7.27%, the highest in 14 months.
In India, data showing a surge in growth in the core sector boosted domestic bourses with the 50-unit S&P CNX Nifty settling above the psychological 5,000 level. The market breadth was strong. The BSE 30-share Sensex was up 159.91 points or 0.96% to 16,852.91. The S&P CNX Nifty was up 47.90 points or 0.97 % to 5,006.85. It hit a high of 5,020.25.
On the economic front, the index of six core industries having a combined weight of 26.7% in the index of industrial production (IIP) registered a growth of 7.1% in August 2009 compared to a growth of 2.1% in August 2008. During April-August 2009-10, six core industries registered a growth of 4.8% as against 3.3% during the corresponding period of the previous year. Coal and cement sector boosted overall growth in the six infrastructure industries in August 2009.
Elsewhere, Malaysia's Kula Lumpur Composite index went up 0.19% or 2.26 points to 1208.21 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2443.83.
In other regional market, European shares were in a tight range, with gains for banks working to limit downside, as investors took a breather after pushing shares sharply higher in the previous session. On a regional level, the French CAC-40 index fell 0.48% or 18.38 points to 3,807 and the U.K. FTSE 100 index also lost 0.41% or 21.06 points to trade at 5,145. The German DAX index declined 0.58% or 33.36 points to 5,703.
Nifty regains 5,000 mark
Data showing a surge in growth in the core sector boosted domestic bourses with the 50-unit S&P CNX Nifty settling above the psychological 5,000 level. The BSE 30-share Sensex rose 159.91 points or 0.96%, off close to 55 points from the day's high and up close to 50 points from the day's low. Index heavyweights Reliance Industries and ICICI Bank led the rally which was a part of a rally in most Asian stocks. IT, banking and healthcare stocks rose. But realty stocks reversed early gains. The market breadth was strong.
The market surged in early trade after opening with an upward gap on firm Asian stocks. The market moved in a narrow range in mid-morning trade. A bout of volatility was witnessed as the key benchmark indices regained strength after hitting a fresh intraday lows in early afternoon trade. Trading turned range bound later. Alterable bout of buying and selling was witnessed as volatility struck again in mid-afternoon trade.
The S&P CNX Nifty closed above the psychological 5,000 mark. Nifty had settled above the 5,000 level for the first time in 15 months on 22 September 2009. It had failed to settle above that level since then.
Shares bought in the cash segment today, 29 September 2009, cannot be sold tomorrow, 30 September 2009, as banks remain closed tomorrow on account of half-yearly closure of books. Another reason why traders may refrain from building large positions this week is because this is a truncated trading week as the market remains closed on Friday, 2 October 2009, on account of Gandhi Jayanti. The market had remained closed for a public holiday on Monday, 28 September 2009.
The index of six core industries having a combined weight of 26.7% in the index of industrial production (IIP) registered a growth of 7.1% in August 2009 compared to a growth of 2.1% in August 2008. During April-August 2009-10, six core industries registered a growth of 4.8% as against 3.3% during the corresponding period of the previous year. Coal and cement sector boosted overall growth in the six infrastructure industries in August 2009.
Pointing out signs of economic recovery, Mr V. Sridhar, Chairman, Central Board of Excise and Customs (CBEC) said on 25 September 2009, that excise duty collection were up 23% in August 2009 over July 2009.
The government will sell bonds totalling Rs 1,23,000 crore ($25.6 billion) in the second half of the current financial year as part of its borrowing schedule, Finance Secretary Ashok Chawla said on Tuesday, 29 September 2009. The amount was in line with market expectations.
A massive borrowing programme of the government this year has put pressure on government bond prices. The government had set a annual gross borrowing target of Rs 4.51 lakh crore for 2009/10 (April/March), and has already sold Rs 2.95 lakh crore of bonds until September 2009. Chawla said the gross borrowing target of Rs 1.23 lakh crore in the second half excludes the conversion of market intervention bonds.
The next trigger for the stock market is Q2 September 2009 results of India Inc next month. 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. Infosys kickstarts the reporting season on 9 October 2009.
However, a section of the market is concerned 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.
European equities drifted lower on Tuesday after sharp gains in the previous session, with weaker commodity shares offsetting gains made by financial stocks. Key benchmark indices in France, Germany and UK were down by between 0.26% to 0.42%.
British gross domestic product shrank by 0.6% in the second quarter, revised up from an earlier estimate of a 0.7% fall, the Office for National Statistics (ONS) reported Tuesday. The change reflected an upward revision to construction output, the ONS said. Compared to the same period a year ago, GDP fell 5.5%, unchanged from the previous estimate.
Asian shares rose on Tuesday, as news of several multi-billion dollar takeover bids overseas boosted confidence in global economic recovery, while the yen dipped after Tokyo refused to rule out currency intervention. Key benchmark indices in Hong Kong, South Korea, Singapore and Taiwan rose by between 0.87% to 2.06%. But, China's Shanghai Composite fell 0.33% in volatile trade.
Trading in US futures indicated the Dow could fall 5 points at the opening bell on Tuesday, 29 September 2009. US index futures reversed initial gains.
US markets rose on Monday 28 September 2009 halting a three-day losing streak, as a spurt of corporate takeovers in the technology and healthcare sectors fueled optimism about share values. The Dow rose 124.17 or 1.3 % to 9,789.36. The Standard & Poor's 500 index rose 18.60, or 1.8 % to 1,062.98, and the Nasdaq composite index rose 39.82, or 1.9 % to 2,130.74.
On the deals front, Johnson & Johnson said it bought 18.1% of Crucell for $442.7 million. Xerox agreed to pay $6.4 billion for acquiring outsourcing and information-services company Affiliated Computer Services. And Abbott Laboratories said it will buy the pharmaceutical business of Belgium's Solvay for as much as $7 billion in a deal that would expand its presence in emerging markets.
In general, a pickup in the pace of mergers and acquisitions tends to boost the market because it sets off a guessing game among investors who begin to buy shares of companies they believe are likely acquisition targets.
Another reason why mergers and acquisitions are typically viewed as bullish is because it suggests companies are more optimistic about the business outlook.
Meanwhile, the deputy director of International Monetary Fund (IMF) Murilo Portugal on Monday said the IMF will increase its forecast for global growth next year in the next few days to account for a faster recovery in major economies. The IMF will raise its forecast for 2010 global growth to about 3% from 2.5% he said. The revised forecast could come as soon as Tuesday.
The BSE 30-share Sensex rose 159.91 points or 0.96% to 16,852.91. The Sensex rose 214.84 points at the day's high of 16,907.84 in early trade. The barometer index rose 109.80 points at the day's low of 16,802.80 in early afternoon trade.
The S&P CNX Nifty rose 47.90 points or 0.97 % to 5,006.85. Nifty October 2009 futures were at 4995.80 at a discount of 11.05 points as compared to the spot closing of 5006.85. Turnover in NSE's futures & options (F&O) segment was Rs 45,244.04 crore, sharply lower than Rs 59,792.44 crore on Friday, 25 September 2009.
BSE clocked a turnover of Rs 5006 crore, lower than Rs 5865 crore on Friday, 25 September 2009.
The market breadth, indicating the overall health of the market was strong. On BSE, 1653 shares rose as compared with 1103 that declined. A total of 89 shares remained unchanged.
Among the 30-member Sensex pack, 19 rose and rest fell.
The Sensex is up 7,205.60 points or 74.69% in calendar year 2009 as on 29 September 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8,692.51 points or 106.52% as on 29 September 2009. FII inflow in the calendar year 2009 totaled Rs 57,525.70 crore (till 25 September 2009).
Coming back to today's trade, the BSE Mid-Cap index rose 0.61% and the BSE Small-Cap index rose 0.93%. Both the indices underperformed the Sensex.
The BSE IT index (up 2.26%), the BSE Healthcare index (up 1.63%), the BSE Teck index (up 1.59%), the BSE Oil & Gas index (up 1.52%), the BSE Consumer Durables index (up 1.35%), outperformed the Sensex.
The BSE Realty index (down 0.65%), the BSE Auto index was unchanged, the BSE Metal index (up 0.06%), the BSE FMCG index (up 0.27%), the BSE PSU index (up 0.31%), the BSE Capital Goods index (up 0.33%), the BSE Power index (up 0.59%), the BSE Bankex (up 0.75%), underperformed the Sensex.
Index heavyweight Reliance Industries (RIL) rose 1.7% to Rs 2166. The stock came off the day's high of Rs 2177. In the face of opposition from the Power Ministry and Anil Ambani group firm Reliance Infrastructure on the marketing margins charged, Reliance Industries (RIL) has justified the levy saying it was essential to cover risks and costs incurred in marketing of gas.
Terming as illegal the market margin, Reliance Infra had refused to pay the levy prompting RIL to issue a notice for suspension of fuel supply for "default". NTPC has sought to know whether the margins levied by RIL had government's approval.
RIL had said on 24 September 2009 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.
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.
Oil exploration stocks were mixed after US crude oil futures rose more than 1% on Monday, on jitters over Iran's latest test-firing of missiles and as Wall Street rallied on stepped up mergers and acquisition activity. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms. On the New York Mercantile Exchange, November crude settled up 82 cents, or 1.24%, at $66.84 a barrel.
India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) rose 2.49%. ONGC on 23 September 2009 said it will invest over Rs 5000 crore in the next two years in bringing new oil and gas finds into production. But Cairn India fell 0.08%.
India's second biggest oil and gas exploration firm by revenue Oil India makes its debut on the bourses on Wednesday, 30 September 2009. The company had priced its initial public offer (IPO) at Rs 1,050 per share, at the Rs 950 to Rs 1,050 price band, following a robust response from institutional investors.
PSU OMCs rose as higher crude oil prices will result in increase under-recoveries on domestic sale of petrol, diesel, kerosene and LPG at controlled prices. HPCL, Indian Oil Corporation (IOC) and BPCL fell by between 0.64% to 2.15%.
Public sector oil companies IOCL, BPCL and HPCL are reportedly expected to lose Rs 16,388 crore revenue in the first half of current financial year for keeping retail prices of auto and cooking fuels below the cost. The government recently 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.
IT stocks rose as an increase in the mergers & acquisitions in the United States suggested that companies are more optimistic about the business outlook. US is the biggest market for Indian IT firms. India's third largest software services exporter by sales Wipro rose 2.71% as its American depository receipt (ADR) rose 3.24% on Monday.
India's second largest software services exporter by sales Infosys rose 1.69% as its ADR rose 2.81% on Monday.
India's largest IT exporter by sales Tata Consultancy Services rose 3.98%. A news agency quoted chief executive S. Ramadorai as saying that the company expects a recovery in the global banking sector to boost its revenues this year. Ramadorai said the company was seeing some signs of a recovery in the demand for outsourcing, especially from the banking, financial services and insurance sectors that account for 43% of its business.
Banking stocks rose in a volatile trade after Finance secretary Ashok Chawla said today there is a need to look at consolidation of banks and that government is not discouraging Indian banks from making acquisitions abroad. Bank stocks also got support 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 3.12% as its ADR rose 2.95% on Monday. India's second largest private sector bank by net profit HDFC Bank rose 0.04% as its ADR rose 2.09% on Monday.
But, India's largest bank by net profit and branch network State Bank of India fell 2.26%. 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.
Realty stocks reversed early gains on reports the Reserve Bank of India (RBI) may increase the cost of funds for the commercial real estate sector by up to 200 basis points. The current move will make loans to this segment costlier by 75-200 basis points.
DLF, Indiabulls Real Estate , Unitech, Ansal Properties, Ackruti City fell by between 0.01% to 2.4%. The measure could affect the financial health of some of the largest real estate firms of the country, which were forced to sell land banks and projects to meet their cash requirements.
Realty stocks have surged over the few days back 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.
Select pharma stocks rose, extending a broad-based rally in the sector on Friday. Ranbaxy Laboratories, Lupin, Sun Pharmaceutical Industries, Cipla and Pfizer rose by between 0.15% to 6.09%.
As per the market buzz, global pharma innovators are scouting for acquiring India drug makers, as generic penetration in the developed market is expected to increase on the back of blockbuster drugs, to the tune of US $114bn, falling off the patent cliff in the next three years.
India's largest mobile telecom player by sales Bharti Airtel rose 1.09% as the South African government is expected to communicate its stance on Tuesday 29 September 2009 to South Africa's MTN and Bharti Airtel which are seeking to create the world's third largest mobile firm. The period for exclusive talks between Bharti and MTN which had been extended twice before is set to expire on 30 September 2009.
Bharti Airtel and South African MTN Group are not looking at a dual-listed structure immediately if their merger goes ahead, Finance Minister Pranab Mukherjee said in an interview with a television channel. Excerpts of Mukherjee's interview were broadcast on Monday. Finance Secretary Ashok Chawla said today there is no formal proposal before government for dual listing of Bharti and MTN.
As per media reports, South Africa's government is eager to retain MTN's national character and has approached Indian authorities to consider a dual-listed structure, which is not allowed under existing Indian laws.
India's second largest mobile services provider by sales Reliance Communications (RCOM) fell 0.6%. The company is reportedly in advanced talks with Dialnet Communications to launch mobile-based education services. If this deal is signed, RCom will earn revenue of Rs 800 crore over a five-year period.
Select cement stocks rose as a thrust on the infrastructure sector in the Union Budget 2009-2010 may keep cement demand strong. Birla Corporation, Ambuja Cements, Ultratech Cement rose by between 0.71% to 2.9%. But Grasim Industries and ACC fell by between 0.34% to 1.6%. Cement makers recently cut prices by Rs 3 per 50 kilogram bag in Mumbai.
Construction shares rose 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. Nagarjuna Construction Company, Gammon India, Gayatri Projects, Valecha Engineering, Era Infra Engineering rose by between 1.85% to 3.93%.
The government has set a target of spending $20 billion a year on road construction.
But, Jaiprakash Associates fell 1.35%. The company on 23 September 2009 raised around Rs 1,190 crore through sale of 5 crore treasury shares by way of bulk deals on the bourses.
India's largest engineering and construction firm by sales Larsen & Toubro rose 0.11% to Rs 1647.70 after the company said during market hours today its unit got a multi million dollar contract from Germany's Infineon Technologies AG. But the stock came off the day's high of Rs 1,668.
Among other capital goods stocks, Bharat Heavy Electricals, Punj Lloyd, SKF India rose by between 1.22% to 5.18%.
Power stocks rose as the government has planned a huge expansion in power generation capacity over the next few years in a bid to reduce the power shortage in the country. Tata Power Company, Reliance Power, Torrent Power, Reliance Infrastructure, rose by between 0.41% to 1.9%.
Auto stocks were mixed. Auto stocks have rallied sharply over the fast few months on revival in demand and the rally gathered steam recently on expectations of pick up in demand in the ongoing festive season which began with Dussehra on Monday. India's largest tractor maker by sales Mahindra & Mahindra rose 0.26%. India's largest motorbike maker by sales Hero Honda Motors rose 0.15%.
But, India's largest truck maker by sales Tata Motors fell 0.35%. Tata Motors-owned Jaguar Land Rover on 24 September 2009 unveiled a new business plan for the next decade, under which it will invest substantially in a new range of eco-friendly vehicles. The plan, designed to increase global competitiveness, drive growth and sustain profitability, envisages an investment of £800 million (over Rs 6,200 crore) on environmental innovation alone, part-supported by the European Investment Bank.
The plan will also see the company shutting down of one of its plants, in a bid to cut costs and to improve its financial health.
India's top small car maker by sales Maruti Suzuki fell 0.15% on profit taking after recent strong gains.
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.
Some metal stocks rose as LMEX, a gauge of six metals traded on the London Metal Exchange gained 0.33% on Monday, 29 September 2009. Tata Steel, National Aluminum Company, Jindal Saw, Hindalco Industries, JSW Steel rose by between 0.16% to 1.13%.
But India's largest copper maker by sales Sterlite Industries fell 0.13%. A US bankruptcy judge on 24 September 2009 rejected attempts by India's Sterlite Industries to sweeten its offer for U.S. copper miner Asarco LLC, and recommended for the second time that rival bidder Grupo Mexico SAB de CV regain control of the company. Sterlite, however, maintained it was still in the race to acquire the copper miner.
Sterlite said on 21 September 2009 said 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.
Fertiliser shares rose on revival of annual monsoon since mid-August. GSFC, GNFC, Chambal Fertilisers and Chemicals, Rashtriya Chemical & Fertilisers rose by between 0.9% to 4.8%. Fertilizer sales are directly dependent on monsoon. A bountiful monsoon boosts sales whereas a drought hits sales adversely.
Revival in the monsoon in mid-August 2009 has improved prospects for an early sowing of winter crops including wheat and canola, and replenished water levels in reservoirs. Farmers use this water to grow wheat and oilseeds planted between October and December.
Some FMCG pivotals fell. FMCG firms derive substantial revenue from the rural sector. ITC, United Spirits, Marico, Tata Tea, Bestle India fell by between 0.15% to 1.01%.
Cals Refineries clocked highest volume of 2.67 crore shares on BSE. Era Infra Engineering (1.66 crore shares), Karuturi Global (1.54 crore shares), Sanraa Media (1.31 crore shares) were the other volume toppers in that order.
Era Infra Engineering clocked highest turnover of Rs 275.79 crore on BSE. Educomp Solutions (Rs 209.09 crore), Reliance Industries (Rs 154.44 crore), State Bank of India (Rs 91.70 crore) and Tata Steel (Rs 80.99 crore) were the other turnover toppers in that order.
Pipavav Shipyard, Oil India Grey Market Premium
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Oil | 1050 | 25 to 30 |
| Pipavav Shipyard | 58 | 3 to 3.50 |
| Thinksoft Global | 115 to 125 | Discount |
| Euro Multi Vision | 70 to 75 | 4 to 5 |
Market may gain on positive Asia
The market may gain tracking higher Asian stocks. Sentiment may also get a boost after a sharp rise in core sector growth in month of August 2009. However, investors may refrain from building large positions in a truncated week as market will remain close on Friday, 2 October 2009 due to Mahatma Gandhi Jayanti. The market had remained closed for a public holiday on Monday, 28 September 2009.
The Index of Six core industries having a combined weight of 26.7 % in the Index of Industrial Production (IIP) registered a growth of 7.1% in August 2009 compared to a growth of 2.1% in August 2008. During April-August 2009-10, six core industries registered a growth of 4.8% as against 3.3% during the corresponding period of the previous year. Coal and cement sector boosted overall growth in six infra for August 2009.
The next trigger for the market is Q2 September 2009 results of India Inc next month. 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.
Pointing out signs of economic recovery, Mr V. Sridhar, Chairman, Central Board of Excise and Customs (CBEC) said, on Friday, that the excise duty collection for the month of August had grown 23 % over July 2009.
Coming back to stocks, a section of the market is concerned 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.
India's largest mobile telecom player by sales Bharti Airtel will be in action as South African government expected to communicate its stance on Tuesday 29 September 2009 to the two companies seeking to create the world's third largest mobile firm.
South African president Jacob Zuma will consult the team of government officials that visited India last week as well as the ruling African National Congress and take a decision on whether the government's insistence on a dual listed company or DLC structure can be waived. The period for exclusive talks between Bharti and MTN which had been extended twice before is set to expire on 30 September 2009.
Asian stocks rose today led by oil and technology companies. The key benchmark indices in Hong Kong, South Korea, Singapore and Taiwan rose by between 0.95% to 2.03%. Bu, China's Shanghai Composite fell 0.93%.
U.S. markets rose on Monday 28 September 2009 halting a three-day losing streak, as a spurt of corporate takeovers in the technology and healthcare sectors fueled optimism about share values. The Dow rose 124.17, or 1.3 % to 9,789.36. The Standard & Poor's 500 index rose 18.60, or 1.8 % to 1,062.98, and the Nasdaq composite index rose 39.82, or 1.9 % to 2,130.74.
Meanwhile, the International Monetary Fund will increase its forecast for global growth next year in the next few days to account for a faster recovery in major economies, its deputy director said on Monday.
The IMF will raise its forecast for 2010 global growth to about 3 percent from 2.5% said Murilo Portugal, the fund's deputy managing director. The revised forecast could come as soon as Tuesday.
Back home, volatility ruled the roost as the key benchmark indices slipped on Friday, 25 September 2009 with investors taking home some cash ahead of a long weekend. The BSE 30-share Sensex fell 88.43 points or 0.53% to 16693 on that day.
As per provisional data, foreign funds on 25 September 2009, sold stocks worth a net Rs 37.72 crore. Domestic funds mopped up equities worth a net Rs 227.26 crore.
Copper drops the most in five weeks
Soaring LME inventory takes toll on red metal price
Copper prices dropped the most in five weeks on Monday, 28 September, 2009 at Comex and LME. Prices fell today once again on back of soaring LME inventories.
At USA, copper futures for December delivery slid 1.35 cents (0.5%) to 2.727 a pound. Copper fell 1.6% last week. Copper ended August, 2009, higher by 7%.
On the London Metal Exchange, copper for delivery in three months ended higher by $35 (0.3%) at $6,010 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
After August, it was the eighth straight monthly gain for copper. Prices gained 23% in the second quarter. On a year to date basis, prices are higher by 89%. In September, prices are headed for the first monthly drop in FY 2009.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
In the currency market on Friday, the dollar remained extremely volatile. The dollar index, which measures the strength of dollar against a basket of other currencies, rose by almost 1.5% earlier during the day but then erased most of its gains.
As per latest reports, copper stockpiles in warehouses monitored by the London Metal Exchange rose 1.1% to 344,350 metric tons, the highest since 19 May, 2009. They have climbed 15% in September.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
Crude manages to climb up
Prices go up after last week's steep fall
Crude prices managed to end higher at Nymex on Monday, 28 September, 2009. But dollar's movement kept the gains under control.
On Friday, crude-oil futures for light sweet crude for November delivery closed at $66.84/barrel (higher by $0.82 or 1.2%). Last week, crude ended lower by 8%.
For the month of August, 2009, crude ended higher by a marginal 0.7%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 64% since then. Year to date, in 2009, crude prices are higher by 42%.
In the currency market on Friday, the dollar remained extremely volatile. The dollar index, which measures the strength of dollar against a basket of other currencies, rose by almost 1.5% earlier during the day but then erased most of its gains.
Among other energy products on Friday, October reformulated gasoline rose 2 cents, or 1.2%, to $1.64 a gallon and October heating oil gained 2 cents, or 1.2%, to $1.69 a gallon.
Also on Friday, natural gas for October delivery fell 25 cents, or 6%, to $3.73 per million British thermal units. The October contract expired today. The new front-month November contract fell 11.8 cents to finish at $4.83 Btus.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
Daily News Roundup - Sep 29 2009
Power Ministry has questioned the validity of Reliance Industries’ charging marketing margin on the sale of gas from its KG-D6 fields. (BL)
L&T Finance agrees to acquire 100% stake in DBS Cholamandalam AMC for Rs450mn from Cholamandalam DBS Finance. (BL)
Sesa Goa plans to raise Rs60bn through various options such as QIPs, ADRs, GDRs etc. (BL)
ONGC has zeroed in on a location in Assam and has submitted a proposal to Uranium Corporation of India Ltd (UCIL) for jointly exploring the resource. (BL)
Suzlon has kicked off discussions with lenders to review its financing options which could lead to the refinancing of its domestic and foreign loans. (TOI)
US bankruptcy judge rejected attempts by Sterlite Industries to sweeten its offer for Asarco, and recommended for the second time that rival bidder Grupo Mexico regain control of the company. (TOI)
Tata Power expects to commission the first two units of its 4,000MW Mundra UMPP in Gujarat before the end of the current five year plan. (BL)
Gammon India says it has decided to raise US$200mn through qualified institutional placement. (FE)
Lupin has acquired the marketing rights and inventory for cholesterol-lowering drug Antara for the US market from bankrupt American company Oscient Pharma for US$39mn. (ET)
Tata Power is scouting for coal mines abroad, including Australia and Mozambique, to meet demand for its upcoming projects. (ET)
RIL has made a fresh appeal to the petroleum ministry to grant a three-year rig holiday. (FE)
BSNL plans to outsource more than 50,000 towers and over 0.1mn km of optic fibre cable in deals worth more than Rs50bn over five years. (ET)
SAIL is looking to set up two greenfield slag-based cement manufacturing units with a total capacity of 3mtpa through a joint venture. (BS)
MTNL invites bids to set up IT network for Games worth Rs4bn. (ET)
Nacil to raise Rs20bn by January 2010. (Mint)
JSW Energy is scouting for an alternative site for its power project in Gujarat as the one it had identified the land for, in the first phase, is no longer feasible. (BL)
Cipla says it will raise Rs6.8bn through the issue of equity shares on an institutional placement basis. (FE)
Mahindra Satyam has been exempted from providing financial statements in bids for government projects enabling it to participate in tenders called by government units. (ET)
HCL Technologies plans to hire 2,000 software engineers in the next 3-4 months. (ET)
Union Bank of India has sought Rs18bn capital infusion from the government to strengthen its capital base. (BL)
A proposal finalized by DoT says about two-thirds of BSNL's employees would be shifted to a newly created PSU, the National Optic Fibre Authority. (FE)
Dabur India to set up one unit each in Himachal Pradesh, Uttarakhand and Egypt, which will be operational by July next year. (ET)
The steel ministry has approached the ministry of finance to initiate the divestment process in SAIL along with its proposed public offering. (ET)
Mundra Port and SEZ is holding talks with the Vietnam government to set up a port in the country. (ET)
United Spirits plans to invest Rs6.8bn towards building four Greenfield primary distilleries. (ET)
ICAI finds Satyam auditors ‘prima facie’ guilty of misconduct. (BL)
ICICI Bank will block all its credit cards issued to a customer in case s/he defaults on any one of them. (BS)
SANOFI-AVENTIS, looking to pick stake in Piramal Healthcare. (ET)
Karnataka Government to exempt VAT and CST to coaches manufactured by public sector BEML for Bangalore Metro project. (BS)
US court rejects Wyeth’s request for a temporary restraining order to prevent Orchid Chemicals from launching the generic version of the antibiotic injections, Piperacillin and Tazobactam, in the US. (ET)
Rural Electrification Corp says its follow on public offer to raise Rs32bn is likely to come up by January 2010. (FE)
The income tax department conducted searches at various premises of Tulip Telecom for alleged evasion of taxes running into crores of rupees. (ET)
Sesa Goa, Welspun Gujarat raise US$630mn via FCCBs. (ET)
Bharati Shipyard is considering seeking shareholders’ approval to take the borrowing limit to Rs70bn. (ET)
Uttam Galva Steel plans a capital expenditure of Rs3-5bn over the next two years for setting up of a 60MW power plant. (ET)
DLF has mopped up ~1bn as booking amount for flats it had offered in the second phase of its housing project in Delhi. (ET)
RCF is planning to re-develop its residential areas with high-rise towers to unlock the value of its real estate assets. (BS)
Usher Agro is planning to expand paddy milling capacity at Mathura, Uttar Pradesh, from the existing 2,00,000 tons to 5,00,000 tons at an investment of Rs800mn. (BS)
Gujarat State Petroleum Corporation is planning to import one LNG cargo every month as part of its strategy to enter into the LNG trading business. (BS)
Adani group eyes 100mt port in Orissa. (BS)
Camlin is exploring options to sell the pharmaceutical businesses of subsidiary Camlin Fine Chemicals. (ET)
Provogue talks to FMCG firms for distribution joint venture. (BS)
Royal Orchid Hotels plans to add 3,000 rooms over the next four-five years. (BS)
Lodha Developers to raise up to Rs30bn in IPO. (BS)
NEPC India plans to set up a SEZ at Palladam near Coimbatore with an investment of around Rs20bn. (BS)
Gulshan Investment and Shail Investments, acquires 13.4% of Fame India. (ET)
Tata, AIG to infuse Rs6bn in life insurance JV. (BS)
Torrent Group to expand its Kadi-based pharma facility and setting up a green field project at upcoming Dahej SEZ. (ET)
ArcelorMittal will focus more on emerging markets including India and expects to return to the pre-crisis level by 2012. (ET)
Unilever agreed to buy Sara Lee Corp’s personal-care and European detergent unit for US$1.88bn. (BS)
Foreign exchange reserves fell US$208mn to US$281bn for the week ended September 18. (BL)
Security transaction tax has seen a growth of 11% between April 1 and September 25, over the year-ago period. (ET)
Index of six core infrastructure industries registers 7.1% yoy growth in August, as against 2.1% last year. (BL)
The government may lease six sick units on a public private partnership (PPP) basis instead of disposing of these units through an outright sale. (BS)
The government is considering a cap on return on equity earned by road developers for annuity projects to prevent cartels from making abnormal profit. (ET)
The Reserve Bank of India may increase the cost of funds for the commercial real estate sector by up to 200 basis points. (ET)
Exports of pharmaceuticals and fine chemicals increased 29% in FY09 compared with the year-ago period. (BL)
Government plans to roll out nutrient-based fertiliser subsidy in phases. (BS)
August excise collection up 23% over July, says CBEC chief. (BL)
DoT is learnt to have decided that the policy on mobile virtual network operation would be applicable to both 2G and 3G services. (DNA)
Successful bidders for 3G spectrum will also be allotted 2G airwaves, conceding a major demand of foreign telcos looking to take part in the 3G auctions. (ET)
More than half-a-dozen PSU banks are expected to get ~Rs100bn as fresh capital by December following the World Bank board’s decision to inject funds into these PSB’s and enhance their capacity to lend. (ET)
The law ministry has cleared a proposal to enact a law to screen foreign investment from the security angle. (ET)
Security encashment likely to be cut to 5% for highway bidders. (ET)
From the brink to prosperity!
Prosperity is not without many fears and distastes; adversity not without many comforts and hopes.
Ring out the old rules, bring in the new. That’s what leaders of G20 nations committed during the weekend. US President Obama said, "We brought the global economy back from the brink, we laid the groundwork today for longtime prosperity as well. Still we know there is much further to go." The G20 leaders also reiterated the pledge to maintain status quo on the unprecedented stimulus till there is absolute certainty that the world economy is out of the woods. So, premature withdrawal is out of question. A gradual and orderly exit is more likely.
Today, we expect the market to open strong due to healthy global cues. We have a truncated week with another holiday on Friday. The market is consolidating after the very nice recovery. It has turned choppy lately after the recent pull-back from multi-month highs. We could see a new push higher or some more selloff. Downside will hinge on whether there will be support on dips. The quarterly earnings will be crucial in deciding whether the rally gets another leg up.
There is action ringing on the telecom front in India with the 3G spectrum sale process beginning today. And of course we have a deadline on Wednesday for Bharti Airtel's proposed tie-up with South Africa's MTN Group.
The Indian market was spared the usual Monday Blues thanks to the festival of Dussera; and have woken up to an M&A Monday on Wall Street. Barely a week after Dell bid for Perot Systems, we now have Xerox, (earlier often used as a verb for making copies) saying it would buy Affiliated Computer Services Inc. for $6.4bn expanding its services into technology outsourcing and data management. While Xerox shares came tumbling down, Nasdaq moved higher expecting a round of consolidation in the IT space.
In other deal related news, Abbott Labs said it would buy the drug unit of Solvay for $6.6bn. US diversified health care company Johnson & Johnson has bought an 18% stake in biotech firm Crucell for 302 million euros ($444 million) as part of a flu vaccine development deal, the Dutch company said on Monday. The spate of big-ticket M&A news lately only adds to the theory that the world economy has stopped worsening and is ready to resume its northward journey.
The global economy may be bottoming out, but it is not expected to reach 3% growth until the end of 2010. A gradual move higher is more likely in the stock market than a big selloff. We are seeing continued choppiness in the economic numbers in the US and other developed economies, which points to the fact that the recovery in these parts of the world is still in the early stages. Valuation-wise, stocks may not be as cheap as they were six months ago. But if we get a better-than-expected recovery, stocks may be very attractive, especially relative to other alternatives.
Taking of alternatives, the World Bank president, Robert Zoellick, has warned that there will increasingly be other options to the US dollar. "The United States would be mistaken to take for granted the dollar's place as the world's predominant reserve currency," Zoellick told an audience at Johns Hopkins University in Washington.
FIIs were net sellers of Rs37.2mn in the cash segment on Friday on a provisional basis. The local funds on the other hand were net buyers of Rs2.27bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs9.89bn. On Thursday, FIIs were net buyers of Rs13.22bn in the cash segment. The net FII investments in Indian stocks this year have crossed $11bn. Mutual Funds were net sellers of Rs7.92bn on Thursday.
Caution was the mantra during the week as Indian bourses turned into a consolidation mode during the F&O expiry. The Nifty did manage to cross the crucial 5,000 mark for the first time in 2009. Markets continued to trade sideways on account of weak global cues and concerns on inflation. Anxiety about upcoming earnings also prompted investors to remain on sidelines. The Nifty and Sensex both ended the week down 0.3% managed to close at 4,959 and 16,693 respectively.
On Friday, the BSE Sensex slipped 88 points or 0.5% at 16,693 after touching a high of 16,812 and a low of 16,613. The index opened at 16,679 against the previous close of 16,781. The NSE Nifty fell 31 points to shut shop at 4,955.
In Asia, the Nikkei in Japan was down 2.5%, while Australia's S&P/ASX ended higher by 0.3% at 4,713. Shanghai SE Composite in China was down by 0.5% at 2,838. However, the Hang Seng index in Hong Kong ended flat at 21,024.
In Europe, stocks were mixed. The FTSE in the UK was up 0.5%, The DAX in Germany was flat and the CAC 40 index in France was flat.
Coming back to India, among the BSE sectoral indices, the Metal index was the top loser, shedding 2.2%, followed by the IT index that was down 2% and the BSE Teck index was down 1.4%.
Among the major gainers were, BSE Pharma index gained 5%, BSE Consumer Durables index up 0.8% and BSE Oil & Gas index up 0.8%.
The BSE Mid-Cap index gained 0.7% and the BSE Small-Cap index was up 0.9%.
Among the 30-components of Sensex, 20 stocks ended in the red and 10 ended in the positive terrain. Among the major laggards were ICICI Bank, Tata Steel, Wipro, Tata Motors and TCS.
On the other hand, Sun Pharma, Reliance Industries, ITC, ONGC and HDFC were among the major gainers.
Outside the frontline indices, the big losers in the broader market were Welspun Gujarat, Central Bank, HCL Tech and Yes Bank. On the other hand, gainers included GTL Infra, RCF, Biocon, IDBI Bank and Divi’s Lab.
The top gainers: The top gainers in the Sensex were Ranbaxy Labs (up 16.7%), HDFC (up 7.3%), Maruti Suzuki (up 5%), HDFC Bank (up 4.8%) and Cipla (up 3.1%).
The Top Losers: The top losers in the Sensex were Hindalco (down 7.1%), Infosys (down 5.1%), Tata Steel (down 4.3%), Bharti Airtel (down 4.2%) and ICICI Bank (down 3.8%).
The BSE IT Index (down 3.1%): The top losers in the IT sector were Patni Computer (down 7.7%), Infosys Tech (down 5.1%), Financial Tech (down 3.6%), Sasken Communication (down 3%) and HCL Tech (down 2.1%)Precious metals end higher
Volatile dollar keeps gains under check
Precious metal prices ended higher on Monday, 28 September, 2009. Prices rose in synchronization with stocks at Wall Street. But dollar's movement kept the gains under control.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Friday, gold for December delivery ended at $994.1, higher by $2.5 (0.25%) an ounce on the New York Mercantile Exchange. Earlier during the day, it rose to a high of $998 and also fell to a low of $986 during intra day trading. Last week, gold ended lower by 1.9%. Year to date, gold prices are higher by 13%.
Gold ended August, 2009 higher by 0.2%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (4%) since then.
On Friday, Comex silver futures for December delivery rose 14 cents (0.8%) to $16.2 an ounce.
Silver ended 7.1% higher for August, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 46% this year. For 2008, silver had lost 24%.
In the currency market on Friday, the dollar remained extremely volatile. The dollar index, which measures the strength of dollar against a basket of other currencies, rose by almost 1.5% earlier during the day but then erased most of its gains.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
City Union Bank
We recommend a buy in City Union Bank from a short-term perspective. It is apparent from the charts that the stock has been on an intermediate-term uptrend since its March low of Rs 11.1, forming higher peaks and troughs. In late August, the stock crossed over its 21- and 50-day moving averages and is trading well above these averages. The stock surpassed its key medium-term resistance at Rs 28 on September 25, by surging 3 per cent with high volumes. We notice an increase in volume during the advance days over the past one month. The daily as well as weekly relative strength indices (RSI) are featuring in the bullish zone. Besides, both daily and weekly moving average convergence and divergence indicators are hovering in the positive territory. Considering that the intermediate-term uptrend-line of the stock is intact, we are bullish from a short-term perspective. We anticipate it to move up until it hits our price target of Rs 32.5. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 27.8.
Oil India Listing Grey Market Premium
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Oil | 1050 | 25 to 30 |
| Pipavav Shipyard | 58 | 3 to 3.50 |
| Thinksoft Global | 115 to 125 | Discount |
| Euro Multi Vision | 70 to 75 | 4 to 5 |
Subscribe to:
Posts (Atom)