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Monday, October 05, 2009
Koutons Retail India leads gainers in 'A' group
Apparel retailer Koutons Retail India spurted 13.70% to Rs 379.30. The stock topped the gainers in the BSE's 'A' group. Last month, some reports had suggested that the company is looking to raise Rs 120 crore to Rs Rs 150 crore by the end of December 2009 through a share sale to fund expansion and reduce debt.
India's largest listed air carrier by market capitalisation Jet Airways India jumped 12.88% to Rs 377.60. The stock was the second biggest gainer in 'A' group.
Television broadcaster Zee Entertainment Enterprises advanced 4.01% to Rs 247.70. The stock was the third biggest gainer in 'A' group.
Public sector defense equipment maker Bharat Electronics climbed 3.82% to Rs 1,628. The stock was the fourth biggest gainer in 'A' group.
Drug maker Lupin rose 2.88% to Rs 1,169.75. The stock was the fifth biggest gainer in 'A' group. The company, last month, acquired the rights for Antara, a drug to treat high blood cholesterol and high triglycerides, for $38.61 million from US-based Oscient Pharmaceuticals.
Sensex ends down 268.14 pts; Realty plunges
The Sensex ended on a weak note weighed by Bharti Airtel, Grasim and Hindalco. Realty stocks fell the most followed by teck, metal and banking stocks, which also led the fall. It opened with a loss of 72.54 points, at 17,062.01 on Monday on mixed global cues and proceeded to trade lower the entire day. The benchmark index Sensex extended its losses and slipped below the psychological mark of 17,000 on account of aggressive selling pressure seen in frontliners. Finally, it closed sharply lower, after touching a low of 16,835.80 despite opening of European markets in green.
BSE Midcap and Smalcap index dropped 1.69% and 2.12% respectively.
Among the sectoral indices, BSE Realty plunged 3.53%, TECk lost 2.67%, Metal lost 2.48%, Bankex declined 2.01% and Auto declined 1.76%, while BSE FMCG gained 1.47%.
European stocks fluctuated between gains and losses as an advance by basic-resource producers offset declines by automakers and household-goods companies. UK`s benchmark index FTSE 100 rose 3.37 points, or 0.07%, to trade at 4,992.11. French benchmark index CAC 40 rose 8.79 points, or 0.24%, to trade at 3,658.42. Germany`s benchmark index DAX increased 13.11 points or 0.24% at 5,480.85. (4.15 pm)
The Sensex ended the day with a loss of 268.14 points, or 1.56% at 16,866.41 after touching a high of 17,062.01 and a low of 16,835.80. The broad-based NSE Nifty fell 80.20 points, or 1.58% at 5,003.20 after hitting a high of 5,076.05 and a low of 4,991.95.
Major gainers in the 30-share index were ITC (2.58%), Sun Pharmaceutical Industries (2.29%), Reliance Infrastructure (1.26%), Hindustan Unilever (0.64%), Mahindra & Mahindra (0.58%), and Wipro (0.26%).
On the other hand, Bharti Airtel (8.05%), Grasim Industries (7.10%), Hindalco Industries (6.75%), Reliance Communications (5.60%), DLF (3.95%), and Sterlite Industries (India) (3.59%) were the major losers in the Sensex.
Overall market breadth was extremely negative. Out of the total 2,833 stocks traded at BSE, 779 advanced, 1,991 declined while 63 remained unchanged.
Avinash Gupta, assistant vice president Research Equity, Bonanza Portfolio opining on the market outlook said, ``The market is expected to continue to consolidate further in 4,900 to 5,100 level.``
BSE Bulk Deals to Watch - Oct 5 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
5/10/2009 524412 AAREY DRUGS INVESTMENTOR SECURITES LTD B 25000 44.76
5/10/2009 531519 ANKUSH FINST VIPUL VIRENDRAKUMAR PATEL B 120039 4.25
5/10/2009 531519 ANKUSH FINST PATELRAMESH BHAI B 100000 4.19
5/10/2009 531519 ANKUSH FINST HITESH SHASHIKANT JHAVERI B 32678 4.37
5/10/2009 531519 ANKUSH FINST ASHOK KUMAR NATWARLAL DOSHI B 30000 4.25
5/10/2009 531519 ANKUSH FINST VIPUL VIRENDRAKUMAR PATEL S 55000 4.29
5/10/2009 531519 ANKUSH FINST RAUSHNI BASHEER SAIYED S 99900 4.14
5/10/2009 531519 ANKUSH FINST SAMIR PRAMODBHAI SHAH S 100000 4.25
5/10/2009 531519 ANKUSH FINST BEENA BHARATBHAI SHAH S 100000 4.27
5/10/2009 531519 ANKUSH FINST BHARAT MANUBHAI SHAH S 50000 4.25
5/10/2009 531519 ANKUSH FINST ANKIT MUKESHBHAI SHAH S 50000 4.25
5/10/2009 513401 ASHIANA ISPA DEEPAK KUMAR AGGARWAL B 53833 13.39
5/10/2009 513401 ASHIANA ISPA PARVEEN AGARWAL S 23863 13.42
5/10/2009 505029 ATLAS CYC HR VINOD RAHEJA P B 18294 211.61
5/10/2009 526853 BILCARE LT KOTAK SECURITIES CLIENT PMS AC B 179088 437.52
5/10/2009 526853 BILCARE LT OM TOBACCO PRODUCTS PVT.LTD. S 148073 440.00
5/10/2009 526839 CCAP LTD RAJASTHAN GLOBAL SEC LTD B 54087 62.04
5/10/2009 531327 CHARMS INDS BIRENKUMAR J THAKER S 24000 2.64
5/10/2009 526817 CHEVIO GOLD VIEW FINANCIAL SERVICE LTD B 24202 209.91
5/10/2009 511672 CLARUS CELEBRITY CONSULTANTS PRIVATE LIMITED B 20000 10.84
5/10/2009 511672 CLARUS RAM GOPAL RAJGARHIA(HUF) S 24925 10.84
5/10/2009 511672 CLARUS ANANT KUMAR RAM GARHIA S 25618 10.84
5/10/2009 532363 COMP-U-LEARN KISHOREBABU RAMINENI B 100000 24.38
5/10/2009 517477 ELNET TECHNO SHILPA MILIND DESAI B 30000 46.58
5/10/2009 533090 EXCEL INFO PARESH SANATKUMAR RACHH B 143003 77.10
5/10/2009 533090 EXCEL INFO PARESH SANATKUMAR RACHH S 160685 77.41
5/10/2009 532022 FILAT FASH KHUSHIRAM KAKWANI B 50000 26.30
5/10/2009 533104 GLOBUS SPR TRANSGLOBAL SECURITIES LTD. B 106881 89.89
5/10/2009 533104 GLOBUS SPR TRANSGLOBAL SECURITIES LTD. S 106881 90.34
5/10/2009 531439 GOLDSTON TEC HEMANT MADHUSUDAN SHETH B 100000 28.50
5/10/2009 531439 GOLDSTON TEC PREM MOHANLAL PARIKH S 100000 28.50
5/10/2009 523467 JAI MATA GLA PRABHUDAS LILLADHER P LTD. S 15049 4.57
5/10/2009 523467 JAI MATA GLA BP FINTRADE PRIVATE LIMITED S 52000 4.57
5/10/2009 531731 KUVAM INTL SHOBHA GUPTA S 19600 50.10
5/10/2009 526263 MOLDTEK TECH USHA KUMARI B 20000 84.93
5/10/2009 526263 MOLDTEK TECH YARLAGADDA UDAYABHASKARA RAO S 18839 85.12
5/10/2009 512449 PACE TEXTILES U KHUSHBOO S 203852 101.94
5/10/2009 526247 PREM EXPLOSI ANSHU BHARGAVA B 50000 70.91
5/10/2009 532665 RAJVIR IND KANTA SURESH JAIN S 16642 59.05
5/10/2009 502587 RAMA PUL PAP MAHIPAT IWDARMAL MEHTA B 54033 12.33
5/10/2009 531539 RISH DIGH ST KUNAL B DOSHI B 42000 20.09
5/10/2009 506172 SAMPADA CHEM UDAY NAMDEO SALUNKHE B 25000 26.60
5/10/2009 506172 SAMPADA CHEM SHREE SATYANARAIN PROPERTIES PRIVATE LTD S 100000 26.60
5/10/2009 531312 SANRAA JMP SECURITIES PVT LTD B 3849033 1.06
5/10/2009 531312 SANRAA JMP SECURITIES PVT LTD S 3035852 1.06
5/10/2009 519031 SHAH FOODS L PISTA BAI S 4000 35.00
5/10/2009 532793 SHREE ASHTA MAHALAXMI BROKERAGE (INDIA) PRIVATE LIMITED S 536281 75.60
5/10/2009 532793 SHREE ASHTA MADHUKAR CHIMANLAL SHETH S 996955 69.72
5/10/2009 512413 SPECTACLE BHAVESH PRAKASH PABARI S 299000 58.52
5/10/2009 503657 VEER ENERGY AANGI SHARES & SERVICES PVT. LTD. B 709233 18.77
5/10/2009 503657 VEER ENERGY AANGI SHARES & SERVICES PVT. LTD. S 592484 18.98
5/10/2009 503657 VEER ENERGY ASHOK SHAH S 500000 18.50
5/10/2009 503657 VEER ENERGY JAYESH KIRTANLAL SUTHAR S 500000 18.50
5/10/2009 531874 VENUS VENT KAUSHIK RAJNIKANT MEHTA B 31600 81.41
5/10/2009 532360 VINTAGE CARD AMIT CHAMPAKLAL SHAH HUF S 3940 22.16
5/10/2009 512217 WOOLITE MERC MANHARBHAI B GANDANI B 44170 31.00
5/10/2009 512217 WOOLITE MERC HARSHA HITESH JAVERI S 19000 31.35
5/10/2009 512217 WOOLITE MERC HITESH RAMJI JAVERI S 19000 30.94
NSE Bulk Deals to Watch - Oct 5 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
05-OCT-2009,ETC,ETC Networks Limited,SETU SECURITIES LTD,BUY,52136,181.15,-
05-OCT-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,BUY,193173,76.64,-
05-OCT-2009,FAME,Fame India Limited,SHANKARLAL CHANDRA KUMAR HUF,BUY,185000,36.29,-
05-OCT-2009,FCSSOFT,FCS Software Solutions Li,TRANSGLOBAL SECURITIES LTD.,BUY,82432,99.92,-
05-OCT-2009,GLOBUSSPR,Globus Spirits Limited,RATNABALI CAPITAL MARKETS LTD.,BUY,230000,91.05,-
05-OCT-2009,GLOBUSSPR,Globus Spirits Limited,SATYEN KANORIA,BUY,270063,91.02,-
05-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,11396107,24.07,-
05-OCT-2009,JAYSREETEA,Jayashree Tea Ltd.,KEDIA SECURITIES PVT LTD,BUY,60000,300.32,-
05-OCT-2009,MUDRA,Mudra Lifestyle Limited,PRADIP N SHAH,BUY,100000,34.44,-
05-OCT-2009,SHREEASHTA,Shree Ashtavinayak Cine V,RAJNISH JAIN,BUY,849347,76.51,-
05-OCT-2009,3IINFOTECH,3i Infotech Limited,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,1800000,93.89,-
05-OCT-2009,ETC,ETC Networks Limited,SETU SECURITIES LTD,SELL,52179,181.15,-
05-OCT-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,SELL,227265,77.53,-
05-OCT-2009,FCSSOFT,FCS Software Solutions Li,TRANSGLOBAL SECURITIES LTD.,SELL,82432,99.96,-
05-OCT-2009,GLOBUSSPR,Globus Spirits Limited,RATNABALI CAPITAL MARKETS LTD.,SELL,215000,91.78,-
05-OCT-2009,GLOBUSSPR,Globus Spirits Limited,SATYEN KANORIA,SELL,270063,91.06,-
05-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,11829704,24.09,-
05-OCT-2009,MUDRA,Mudra Lifestyle Limited,PRADIP N SHAH,SELL,250000,34.01,-
05-OCT-2009,POLARIS,Polaris Software Lab Ltd,ORBITECH LIMITED,SELL,605995,152.65,-
05-OCT-2009,SHREEASHTA,Shree Ashtavinayak Cine V,MADHUKAR SHETH,SELL,1782251,69.25,-
05-OCT-2009,SHREEASHTA,Shree Ashtavinayak Cine V,RAJNISH JAIN,SELL,897359,77.30,-
Post Session Commentary - Oct 5 2009
Indian market today dived into red to close with huge losses along with other Asian counterparts. Profit booking together with weaker-than-expected US jobs report weighed on sentiments. The firm trading in US index futures along with positive European markets were unable to bring any respite. Moreover, investors priced in the weakness in global markets on Friday, 2nd October 2009, when the Indian market was closed for a public holiday. BSE Sensex ended above 16,900 level and NSE Nifty closed around 5,000 level.
The market opened below its last closing figure mirroring unfavorable cues from global markets. The US stock market reported loss for fourth straight session and ended lower on Friday, on disappointing job data. Decline in factory orders and weak jobs data gave more evidence that the economic recovery would be less healthy than expected. Further, domestic bourses continued to southbound on huge selling pressure over the ground. Profit taking after a run-up last week, also contributed to hit the investors’ sentiments. During last trading hours, market lost further ground to widen its losses led by all round selling. From the sectoral front, Reality, Teck, Metal, Bank, Auto, PSU and Oil & Gas stocks observed most of the selling from these baskets. Mid Cap and Small Cap stocks also stayed out of favor. However, FMCG stocks remained in limelight as contributed most of the buying.
Among the Sensex pack 23 stocks ended in red territory and 7 in red territory. The market breadth indicating the overall health of the market remained negative as 1191 stocks closed in red while 779 stocks closed in green and 63 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 268.14 points or (1.56%) at 16,866.41 and NSE Nifty ended down 80.20 by points or (1.58%) at 5,003.20. BSE Mid Caps and Small Caps closed with losses of 106.22 and 161.18 points at 6,195.79 and 7,426 respectively. The BSE Sensex touched intraday high of 17,062.01 and intraday low of 16,835.80.
Losers from the BSE Sensex pack are Bharti Airtel (8.05%), Grasim Industries (7.10%), Hindalco (6.75%), RCom (5.60%), DLF Ltd (3.95%), Sterlite Industries (3.59%), SBI (3.53%), Tata Motors (3.28%), MAruti Suzuki (3.17%), JP Associates (3.14%), TCS Ltd (2.61%), Tata Steel (2.53%), Reliance (1.54%), ICIIC Bank (1.48%), ACC Ltd (1.39%), Tata Power (1.05%) and ONGC Ltd (0.96%).
Gainers from the BSE Sensex pack are ITC Ltd (2.58%), Sun Pharma (2.29%), Reliance Infra (1.26%), HUL (0.64%), M&M Ltd (0.58%), Herohonda Motors (0.30%) and Wipro Ltd (0.26%).
On the global markets front, the Asian markets that opened before the Indian market, ended mostly lower. Nikkei 225, Singapore''s Straits and Seoul Composite ended lower by 57.38, 20.80 and 37.73 points at 9,674.49, 2,583.73 and 1,606.9 respectively. However, Hang Seng gained 53.58 points at 20,429.07. Meanwhile, markets in China have been closed since 1 October 2009 for National day and Autumn festival celebrations. Trading will resume on 9 October 2009.
European markets, which opened after the Indian market, are trading in green. In Paris the CAC 40 is higher 4.69 points at 3,654.59, in Frankfurt DAX index is trading up 9.48 points at 5,477.38 and in London FTSE 100 is trading higher by 5.13 points at 4,993.83.
The BSE Realty index decreased by (3.53%) or 159.15 points at 4,348.49 after recent gains in previous trading session. Losers are Orbit Co (5%), Parsvnath (4.95%), Unitech Ltd (4.88%), DLF Ltd (3.95%) and Anant Raj (3.38%).
The BSE Teck index dropped by (2.67%) or 88.17 points at 3,219.94. Losers are Bharti Airtel (8.05%), Balaji Tele (5.79%), Tata Teleserv (5.73%), RCom (5.60%) and HT Media (5.29%).
The BSE Metal index ended lower by (2.48%) or 352.18 points at 13,850.42. Main losers are Hindalco (6.75%), Jindal Saw (5.68%), Ispat Industries (4.45%), SAIL (4.06%) and Gujarat NRE C (3.91%).
The BSE Bank index ended down by (2.01%) or 199.68 points at 9,732.11, as Federal Bank 4.74%), Yes Bank (4.11%), Axis Bank (3.91%), SBI (3.53%) and Kotak Bank (3.17%) ended in red.
The BSE Auto index lost (1.76%) or 116.33 points 6,486.86 despite healthy monthly sales data. Losers are Escorts Ltd (6.61%), Bharat Forge (4.83%), Exide Industries (4.40%), Apollo Tyre (3.64%) and Tata Motors (3.28%).
The BSE FMCG index closed higher by (1.47%) or 38.10 points at 2,630.59. Gainers are ITC Ltd (2.58%), Nestle Ltd (2.33%), Colgate Palm (1.13%) and HUL (0.64%).
Grasim Industries ended lower by 7.10%. The company said that it will transfer its cement business to its unlisted unit Samruddhi Cement. This will eventually be merged into Ultratech Cement. However, on conclusion of the demerger, Grasim would hold 65% in Samruddhi while Grasim shareholders would hold the balance 35% and Grasim Cement''s grey cement and RMC businesses would be transferred to Samruddhi post-demerger.
ACC slipped 1.39% after the company announced that sales of cement fell 2.4% last month. The company sold 1.63mn tons in the month of September, compared with 1.67mn tons a year earlier.
Ashok Leyland Ltd fell 2.87% after total sales decreased 11.87% to 5,452 units in September 2009 over September 2008.
MIC Electronics surged 4.28%. The company''s LED based solar lanterns endorsed at Indo-US Energy Partnership Summit 2009 at Washington DC, USA.
Videocon Industries Ltd went up by 1.72% after the company said it will buy an equity stake in loss-making Finnish electronics firm Elcoteq.
Reliance Infrastructure Ltd gained 1.26% on reports the firm may sell shares in its power distribution and metro project units to the public and strategic partners to unlock value.
Gulf Oil Corporation Ltd lost 0.48%. The firm said it would issue 2.47 crore shares at Rs. 32 per share on a rights basis, at a huge discount of 62.92% over the ruling market price.
AREVA dropped 0.50%. the company’s Transmission and Distribution Division (T&D), AREVA T&D India Ltd has won a prestigious contract for the modernization of Channel Airport, from Pomerleau International - Consolidated Construction Consortium Limited.
Down on frontlines
After last week’s strong upsurge, the market failed to rally further as weak Asian indices and overnight fall on US bourses weighed on the sentiment. Barring fast moving consumer goods (FMCG) stocks, selling was visible in all sectors--from realty to health care. Benchmark BSE-30 (Sensex) opened 73 points lower at 17062 and never recovered from the early slump. While the market moved in a range below 16900 for the better part of the trading session, the index witnessed a steep fall towards the closing hours and nearly breached the 16850-mark to touch the day's low of 16836. The Sensex ended the session 268 points lower at 16866 while Nifty shed 80 points to close at 5003.
The market breadth was negative. The number of declining stocks was twice the number of advancing stocks. Of the 2,831 stocks traded on the BSE 1,986 stocks declined, whereas 782 stocks advanced. Sixty-three stocks ended unchanged. Among sectoral indices, BSE Realty fell 3.53%, while BSE Teck, BSE Metal, BSE Bankex were down over 2% each. BSE FMCG bucked the downward trend gaining 1.47% for the day.
Heavyweights led the fall. Bharti Airtel dropped 8.05% to Rs400.30, Grasim Industries slumped 7.10% to Rs2,509.10, Hindalco Industries shed 6.75% to quote at Rs118.15, Reliance Communications lost 5.60% to trade at Rs300.20, DLF slipped by 3.95% to Rs422.75, Sterlite Industries tumbled 3.59% to Rs750.40, State Bank of India declined 3.53% to Rs2,131.90, Tata Motors was down 3.28% to Rs561.05, Maruti Suzuki India lost 3.17% to close at Rs1,598.60 and Jaiprakash Associates dropped 3.14% to Rs231.50 at closing bell. Tata Consultancy Services, Tata Steel, Reliance Industries, ICICI Bank, ACC and Tata Power were down by 1-3%. Among gainers, ITC rose 2.58% to Rs238.50, Sun Pharmaceutical Industries surged 2.29% to Rs1,429.20 while Reliance Infrastructures, Hindustan Unilever, Mahindra & Mahindra, Hero Honda Motors and Wipro ended with modest gains.
Over 1.56 crore shares of Ispat Industries changed hands on the BSE followed by Unitech (0.93 crore shares), Suzlon Energy (0.86 crore shares), Bharti Airtel (0.63 crore shares) and IFCI (0.60 crore shares).
SBI October 2009 futures at premium
Turnover rises
Nifty October 2009 futures were at 5012.90 at a premium of 9.70 points as compared to the spot closing of 5003.20. Turnover in NSE's futures & options (F&O) segment rose Rs 56,090.77 crore from Rs 54,343.16 crore on Thursday, 1 October 2009.
State Bank of India (SBI) October 2009 futures were at a slight premium at 2132 compared to the spot closing of 2130.
Unitech October 2009 futures were at a slight premium at 100.95 compared to the spot closing of 100.40.
Reliance Industries October 2009 futures were near spot price at 2135.70 compared to the spot closing of 2135.
In the cash market, the S&P CNX Nifty plunged 80.20 points or 1.58% at 5003.20.
Asian markets mark mute Monday
Sensex, Sydney, Seoul finish lower
Stock market in Asian region remained subdued for third session on Monday 5 October 2009, led by technology and mining companies, as economist Nouriel Roubini said share prices may drop and a report showed the US lost more jobs than estimated. New York University Professor Nouriel Roubini, who predicted the financial crisis, said stock and commodity markets might drop in coming months as the gradual pace of the economic recovery disappoints investors.
On Wall Street, stocks closed slightly lower on Friday, after a lousy unemployment report, but it wasn't the pullback the beginning of the session suggested. Losses for the day were milder; the Dow fell 21.61 points, or 0.2%, to 9487.67, while the S&P 500 gave up 4.64 points, or 0.5%, to 1025.21. The Nasdaq shed 9.37 points, or 0.5%, to 2048.11.
It was a rough week for the major averages, with the Dow Jones Industrial Average and S&P 500 losing 1.8%, and the Nasdaq Composite dropping 2% for the five-day session. The bulk of the pullback came as Wall Street braced for the unemployment report.
In economic data, employers cut 263,000 jobs from their payrolls in September 2009 after cutting a revised 201,000 in August 2009, the Labor Department reported Friday, 2 October 2009. The unemployment rate, generated by a separate survey, rose to 9.8% in September 2009, a 26-year high.
A separate government report showed that factory orders plunged in September 2009. The Commerce Department said factory orders fell 0.8% in September 2009 as compared with 1.4% rise in August 2009.
In the commodity market, crude oil fell for a second day in New York on concern demand in the U.S., the biggest energy user, will be slow to rebound as the nation’s jobless rate increased.
Crude oil for November delivery fell as much as 67 cents, or 1 percent, to $69.28 a barrel, in electronic trading on the New York Mercantile Exchange. The contract was at $69.76 a barrel at 4:05 p.m. Singapore time.
Brent crude oil for November settlement fell to as low as $67.28 a barrel on the London-based ICE Futures Europe exchange, down 79 cents, or 1.2 percent. It was at $67.79 a barrel at 4:05 p.m. Singapore time.
Gold, little changed in London today, may rise for a second day as a weaker dollar boosts demand for the precious metal as an alternative investment. Immediate-delivery bullion added $2.50, or 0.2 percent, to $1,005.30 an ounce by 9:42 a.m. local time.
In the currency market, US dollar opened the week mildly weaker as markets are disappointed with the rather mild language from G7 statement. There have be a lot of rhetoric about dollar's weakness ahead of the meeting but in the end, G7 finance chiefs refrained from making any criticism on it. Instead, the group just said that excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability, which is essentially unchanged from prior stance.
On the other hand, Japanese yen went lower on Japan Finance Minister Fujii’s comments that if yen shows excessive moves in a biased direction, will leaves room for the government to intervene. The Japanese yen was quoted at 89.96 against the greenback.
The Hong Kong dollar was trading at HK$ 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$7.85 to the U.S. dollar.
In Sydney trade, the Australian dollar closed higher, bucking poor US jobs data amid speculation that the Reserve Bank of Australia might lift interest rates as early as tomorrow. At local close, the Australian dollar was trading at 87.34/39 US cents, up from Friday's close of 86.89/93 US cents. During the domestic session, the unit moved between 86.47 US cents and 87.47 US cents.
In Wellington trade, the New Zealand dollar dropped slightly on comments by Finance Minister Bill English but then hitched a ride higher with a rising Australian dollar.
The NZ dollar was at US72.01 cents at local close, from US71.61c in the morining and US71.20c at previous closing. During the weekend it fell below US71c for the first time in about 1½ week, but the dip was brief. The NZ dollar fell as low as US71.40c today after Mr. English said NZ dollar was higher than would be expected at this point in the economic cycle.
The South Korean currency closed at 1,173.7 won to the greenback, the highest since 26 September 2008, and up 4.6 won from Thursday's close. The Korean unit climbed to as high as 1,169.1 against the greenback at one point, but the won’s sharp gains eased after the Bank of Korea (BOK), the country's central bank, made a verbal intervention.
The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.2550, 0.0950 up from Friday’s close of NT$32.3500.
In the equities, Asian markets ended mostly lower in volatile trading, with South Korean stocks suffering a steep decline as trading resumed after a holiday and as Hana Financial Group plunged on a report it may raise capital.
In Japan, shares market dropped with most of sectors dived broadly, hurt by concern about the effects of a strong yen on the economic recovery and as bleak U.S. job data. At the closing bell, the Nikkei 225 Stock Average index tumbled 57.38 points or 0.59%, to 9,674.49, while the broader Topix erased 7.39 points, or 0.84%, to 867.28.
Stock markets in China have been shut since 1 October 2009 for National day and autumn festival celebrations. Trading will resume on 9 October 2009
In Hong Kong, the stock market finished the session marginally higher, erasing morning losses as bargain hunters stepped in the afternoon trading after the benchmark indices dived to three-week lowest levels in the previous session. Banks and financials and energy stocks outperformed, while shares of properties sank as weak US jobs data and holiday in China further discourage investors. The Hang Seng Index recovered 53.58 points, or 0.26%, to 20,429.07, while the Hang Seng China Enterprise added 118.73 points, or 1.03%, to 11,645.05.
On the economic front, as per report by Markit Economics and HSBC Holdings, Hong Kong’s purchasing managers’ index for the whole economy stood at 51.8 in September, down from 52.8 in August. A reading above 50 indicates improvement in business conditions, while a reading below 50 signals deterioration.
In Australia, the shares dropped, off morning gains in a last hour of trading, with steep losses in major four banks and as shares of industrials and consumer discretionary ran out of energy in the afternoon. At the closing bell, the benchmark S&P/ASX200 index stumbled 28.40 points, or 0.62%, to 4,573.3, meanwhile the broader All Ordinaries retreated 26.80 points, or 0.58%, to 4,579.3.
In New Zealand, benchmark indices ended the first trading day of the week in the negative region in line with most of the regional markets that faired lower. As per the provisional figures at the closing bell, the NZX50 declined 0.32% or 10.13 points to 3138.72. The NZX 15 was down 0.14% or 8.09 points to close at 5767.43.
On the economic front, New Zealand's key export commodity prices rose 6.8% month-on-month in September, at the fastest monthly pace in 22 years, the latest ANZ Commodity Price Index showed Monday. This comes after a 4.3% gain in prices in August. Meanwhile, as per the treasury report on monthly economic indicators, the New Zealand economy grew marginally in the June quarter, ending the recession, which began in March 2008 - one quarter earlier than anticipated.
In South Korea, shares dropped as foreign and institutional investors cut holdings of local shares on renewed concerns over an economic recovery. The benchmark Korea Composite Stock Price Index (KOSPI) plunged 37.73 points to 1,606.9, extending a losing streak to a third day.
In Singapore, stock market dragged lower by banks, properties and major blue chip shares as investors around the world start to have concerns about the strength of global economic recovery after deeper-than-expected US job losses ignited fears that a soft American labour market could slow the pace of economic recovery. The blue chip Straits Times Index was ended today session at 2,583.73 sank 20.80 points or 0.8%.
In Taiwan, stock market sought to recover from its worst percentage slide in seven weeks, by posting some modest gains. The benchmark Taiex share index finished the first day of the week higher by 26.10 points or 0.35% in a day, closing the day at 7437.98.
In Philippines, the stock market closed marginally lower as investors took clue from losses on Wall Street last Friday. However, positive news on the economic front, gave some support to the composite index. Drop in the leading economic indicator slowed down in the third quarter (Q3) suggesting that the Philippine economy may have bottomed out. The benchmark index PSEi lost 0.01% or 0.55 points to 2,819.48, while the All Shares index mounted 0.01% or 0.21 points to 1,790.41.
In India, key benchmark indices extended fall in late trade to strike day’s low on fresh selling in index pivotals. Stocks fell as investors priced in a sharp weakness in global markets on Friday, when the Indian market was closed for a public holiday.
The BSE 30-share Sensex fell 268.14 points or 1.56% to 16,866.41. The Sensex opened 72.54 points lower at 17,062.01, also its day's high. The barometer index lost 298.75 points at the day's low of 16,835.80 in late trade. The S&P CNX Nifty lost 80.20 points or 1.58% to 5003.80. The index dipped below the psychological 5,000 level to touch day's low of 4991.95 in late trade.
Elsewhere, Malaysia's Kula Lumpur Composite index went up 0.85% or 10.20 points to 1216.45 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2480.41.
In other regional market, mineral extractors and telecom’s helped European shares to advance on Monday for the first time in four sessions, with Telenor shares rising sharply after the firm signed a deal to create a new mobile operator with Altimo. On a regional level, the U.K. FTSE 100 index rose 0.1% to 4,993.38, the German DAX index advanced 0.24% or 13.02 points to 5,481 and the French CAC-40 index 3,656, gained 0.2% or 5.85 points to 3,656.
Sensex snaps three-day winning streak; settles below 17,000 level
Telecom stocks led a setback on the bourses as trading resumed after a long weekend. The market fell as investors priced in a sharp weakness in global markets on Friday, 2 October 2009, when the Indian market was closed for a public holiday. The BSE 30-share Sensex lost 268.14 points or 1.56%, off 195.60 points from the day's high and up 30.61 from the day's low. The BSE Sensex dipped below the psychological 17,000 level. The 50-unit S&P CNX fell below the psychological 5,000 mark in late trade only to regain that level.
After opening with a downward gap, the market extended losses at the onset of the trading session. Buying in some defensive stocks helped the market soon cut initial losses. The market weakened again in mid-morning trade. The market moved in a narrow range later. A sell-off in Bharti Airtel pulled the market lower in afternoon trade. Fresh selling in index pivotals pulled the market to a fresh intraday low in mid-afternoon trade. The market extended losses in late trade.
As per provisional data, foreign funds today, 5 October 2009, offloaded stocks worth a net Rs 310.01 crore. Domestic funds dumped stocks worth a net Rs 567.75 crore.
The market breadth was weak. Telecom shares were the chief casualties of the day following reports of a likely delay in the third generation auction process. Bharti Airtel tumbled over 8% and Reliance Communications lost over 5%. Index heavyweights Reliance Industries and State Bank of India were down 1.74% and 3.66% respectively. Barring select FMCG and pharma stocks, which gained on defensive buying, selling was conspicuous across sectors.
Corporate affairs minister Salman Khursheed has warned firms against paying huge salaries to top company brass and said the government would keep a watch on executive compensation. "I think when we are working on this (austerity), we can hardly say that we (will) shut our eyes on what salary the CEOs are going to take," a news agency quotedKhursheed as saying. "I don't think anyone in India today, in politics or outside politics ... has reached the level of liberalism where vulgarity is also a fundamental right."
Some caution may prevail on the bourses ahead of assembly polls in three states viz. Maharashtra, Haryana and Arunachal Pradesh on 13 October 2009. The counting of votes will take place on 22 October 2009.
A section of the market is worried of hedge fund redemption after the one year moratorium on redemption ends this month. Buried under redemption pressure in the aftermath of the collapse of US investment bank Lehman Brothers, hedge funds took a moratorium period of one year in October last year.
The next trigger for the stock market is Q2 September 2009 results of India Inc. Infosys kickstarts the reporting season on 9 October 2009. 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.
European markets reversed early fall to turn positive as the euro zone's services sector returned to growth, data showed today. Key benchmark indices in Germany, France and UK were up by between 0.07% and 0.29%
Most Asian stocks were trading lower today, 5 October 2009 with sentiment hurt by Friday's weaker-than-expected US jobs report. Key benchmark indices in South Korea, Japan, and Singapore were down by between 0.59% and 2.29%. But Hong Kong's Hang Seng index reversed early fall to turn positive. It was up 0.26%. The Taiwan Weighted index rose 0.35%.
Chinese markets have been shut since 1 October 2009 for National day and Autumn festival celebrations. Trading will resume on 9 October 2009
Trading in US index futures indicated Dow could rise 43 points at the opening bell today, 5 October 2009.
US stocks ended lower on Friday, 2 October 2009, as investors worried that a worse-than-expected jobs report was further evidence that the rally has run ahead of improvement in fundamentals. The Dow Jones Industrial Average lost 21.61 or 0.23% to 9,487.67 while the S&P 500 index was down 4.64 or 0.45% to 1,025.21 and the Nasdaq Composite index shed 9.37 or 0.46% to 2,048.11.
In economic data, employers cut 263,000 jobs from their payrolls in September 2009 after cutting a revised 201,000 in August 2009, the Labor Department reported Friday, 2 October 2009. Economists were expecting 175,000 jobs cuts, on average.
The unemployment rate, generated by a separate survey, rose to 9.8% in September 2009, a 26-year high. That was in line with economists' forecasts and up from the 9.7% rate in August 2009.
A separate government report showed that factory orders plunged in September 2009 in contrast to economists forecast of rise in factory orders. The Commerce Department said factory orders fell 0.8% in September 2009 as compared with 1.4% rise in August 2009.
US stocks were hammered on Thursday, 1 October 2009, setting off declines in market's across the globe on Friday, 2 October 2009. The Dow had crashed over 200 points on Thursday, 1 October 2009, after weaker-than-expected readings on manufacturing and jobless claims sparked worries about the pace of the economic recovery.
Closer home, India's economy is likely to grow at 6.3% or more in the year to March 2010, Planning Commission deputy chairman, Montek Singh Ahluwalia, said today, 5 October 2009. He also added that annual inflation was likely to be around 5% by end March 2009. In July 2009, the central bank forecast GDP growth for 2009-10 at around 6%. Asia's third largest economy grew by 6.7% in 2008-09, sharply slower than the 9% or more in the previous three years.
India's monsoon rainfall running between June to September was the worst since 1972 with cumulative seasonal rainfall for the country as a whole being 23% below the Long Period Average (LPA), the India Meteorological Department (IMD) said on Thursday, 1 October 2009.
Considering district-wise rainfall during the period 1 June to 30 September, the rainfall was excess in 9%, normal in 32%, deficient in 51% districts and scanty in 8% of total districts of the country, the IMD release said. Monsoon has withdrawn from many parts of India and will gradually shift out of the country completely over the next few days.
Coming back to stock markets, 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. A number of realty firms, too, have announced plans to raise funds through the primary market in the coming months.
Reliance Infratel also announced on 22 September 2009, its intention to raise Rs 5000 crore from the primary market. A number of realty firms have announced plans to raised funds through the primary market route. Further, many companies are also in the fray to raise funds by way of qualified institutional placement (QIP), reports suggest.
Divestment of state-run firms by the government may also increase the supply of paper in the market. A decent debut of Oil India on the bourses on Wednesday, 30 September 2009, may boost government's divestment plan. As per recent reports, the government is planning to announce a blueprint for selling its stake in state-owned firms in the first week of October 2009. The policy is expected to suggest how the government will eventually bring down its stake in public sector companies to 75% over a period of time.
The BSE 30-share Sensex fell 268.14 points or 1.56% to 16,866.41. The Sensex opened 72.54 points lower at 17,062.01, also its day's high. The barometer index lost 298.75 points at the day's low of 16,835.80 in late trade.
The S&P CNX Nifty lost 80.20 points or 1.58% to 5003.20. The index dipped below the psychological 5,000 level to touch day's low of 4991.95 in late trade. Nifty October 2009 futures were at 5012.90, at a premium of 9.70 points over the spot closing.
The BSE Sensex had gained 441.55 points or 2.64% in three trading days from 16,693 on 25 September 2009 to 17,134.55 on 1 October 2009.
The Sensex is up 7219.10 points or 74.83% in calendar year 2009 as on 5 October 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8,706.01 points or 106.68% as on 5 October 2009. FII inflow in the calendar year 2009 totaled Rs 60125.60 crore (till 30 September 2009).
Turnover on BSE declined to Rs 5344 crore from Rs 6,551.16 crore on Thursday, 1 October 2009. Turnover in NSE's futures & options (F&O) segment rose Rs 56,090.77 crore from Rs 54,343.16 crore on Thursday, 1 October 2009.
The market breadth, indicating the overall health of the market was weak. On BSE, 2005 shares declined as compared with 820 that rose. A total of 68 shares remained unchanged.
The BSE Mid-Cap index fell 1.69% to 6,195.79 and the BSE Small-Cap index fell 2.12% to 7,426. Both the indices underperformed the Sensex.
All sectoral indices on BSE, barring the BSE FMCG index, edged lower. The the BSE FMCG index (up 1.47%), the BSE PSU index (down 1.48%), the BSE IT index (down 0.80%), the BSE Capital Goods index (down 0.80%), the BSE Consumer Durables index (down 0.58%), the BSE Healthcare index (down 0.35%), the BSE Oil & Gas index (down 1.18%), the BSE Power index (down 0.98%), outperformed the Sensex.
The BSE Teck index (down 2.67%), the BSE Bankex (down 2.01%), the BSE Auto index (down 1.76%), the BSE Metal index (down 2.48%), the BSE Realty index (down 3.53%), underperformed the Sensex.
Among the 30-member Sensex pack, 23 declined while the rest gained.
Telecom stocks were under pressure on reports the government is unlikely to keep its 7 December 2009 dateline for the auction of 3G airwaves, which are vital for high-end services such as video conferencing and ultra-fast internet on mobiles.
India's largest cellular services provider by sales Bharti Airtel slumped 8.27% to Rs 399.35 on high volume of 63.13 lakh shares. It was the top loser from the Sensex pack. The stock had jumped over 4% on 1 October 2009 after its proposed merger talks with South Africa's MTN Group to create the world's third-largest mobile operator were called off just a few hours before the end of the 30 September 2009 deadline for the talks. The deal was called off after South Africa's reluctance to allow a flagship corporate in the country to lose its national character.
India's second largest cellular services provider by sales Reliance Communications dropped 5.69%.
Among other cellular services provider, Idea Cellular was down 4.27% and Mahanagar Telephone Nigam shed 3.63%
The DoT was slated to release the Information Memorandum (IM), a key document containing all details of the auction, including availability of radio frequencies across circles, policy changes, the rules of the auction and mode of payment among several other issues to all potential bidders by 29 September 2009, but has failed to do so.
This has resulted in the 8 October 2009 deadline for submission of questions for pre-bid conference also being postponed. All other timelines, such as those for submission of bids and mock auctions, are also likely to be changed, which may push the December bid plan to early next year.
Shares of diversified firm Grasim plunged 7.43% after the company said on Saturday, 3 October 2009 it will transfer its cement business to its unlisted unit Samruddhi Cement. The demerger will be completed by March 2010 after which Samruddhi Cement will be listed. Samruddhi will then make an offer to UltraTech Cement for consolidation of the group's cement business. Foe every share, shareholders of Grasim will get one share of Samruddhi.
Meanwhile, UltraTech Cement said Monday, 5 October 2009, its board will meet on Tuesday, 6 October 2009 to consider a merger with the cement unit of Grasim Industries. Shares of UltraTech Cement were down 5.41%. Aditya Birla group Grasim and Ultratech Cement currently operate a combined production capacity of 42 million tonnes a year or a fifth of India's cement capacity
The Aditya Birla Group's cement sales jumped 15.8% to 2.77 million tonnes in September 2009 over September 2008. Production rose 14.6% to 2.74 million tonnes.
Ambuja Cement lost 1.76% after the company said September 2009 sales fell 0.7% to 1.35 million tonnes over the previous year.
India's largest cement firm by sales ACC declined 1.07% after the company's cement dispatches fell 2.40% to 1.63 million tonnes in September 2009 over September 2008. The company announced the monthly dispatches data after market hours on Thursday, 1 October 2009.
Other cement shares also edged lower. India Cement (down 2.78%), Shree Cement (down 2.30%), Madras Cement (down 1.57%), declined.
Shares of the Delhi-based JK Lakshmi Cement fell 1.81%. The company's sales for September 2009 rose 9% to 9.48 lakh tonne over the previous year.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.74% to Rs 2132.70. The government may reportedly review RIL's Krishna-Godavari basin gas price along with the allocation of additional gas production from the D-6 block. Reports added that some consumers from fertiliser and power sectors have claimed the $4.20 per million British thermal unit (mBtu) price for KG gas approved during the previous UPA government is 'high' and warrants a 'review'.
Meanwhile, the Supreme Court on Thursday, 1 October 2009 dismissed National Thermal Power Corporation's (NTPC) special leave petition seeking quashing of a Bombay high court order giving permission to Mukesh Ambani's RIL to amend its written submissions in its on-going dispute with the India's largest power generation firm by sales NTPC on the supply of gas from the Krishna-Godavari basin. Shares of NTPC declined 0.45%.
Gulf Oil Corporation fell 0.84% to Rs 82.30. The stock rose to day's high of Rs 86.95 after the firm said it would issue 2.47 crore shares at Rs 32 per share on a rights basis. The announcement was made during trading hours today, 5 October 2009.
Most auto stocks fell despite healthy monthly sales data. India's top small car maker by sales Maruti Suzuki India lost 2.97%. The company's total sales rose 17.3% to 83,306 vehicles in September 2009 over September 2008. The figures were released during trading hours on 1 October 2009.
India's largest truck maker by sales Tata Motors lost 3.57%. The company's total sales rose 5.77% to 52,513 units in September 2009 over September 2008. But India's largest tractor maker by sales Mahindra & Mahindra gained 0.65%. Total sales of the company rose 10.94% to 28434 vehicles in September 2009 over September 2008. Both the companies sales figures hit the market on 2 October 2009.
India's second largest bike maker by sales Bajaj Auto's fell 1.81%. The company's total sales rose 14% to 249,795 units in September 2009 over September 2008. But India's largest bike maker by sales Hero Honda Motors rose 0.09% after total sales rose 4.16% to 4,01,290 units in September 2009 over September 2008. Both these companies announced sales figures were on 2 October 2009.
Ashok Leyland declined 2.87% after total sales fell 11.87% to 5,452 units in September 2009 over September 2008. The company unveiled the monthly sales figure on Saturday, 3 October 2009.
Profit taking weighed on bank shares. India's largest bank by net profit and branch network State Bank of India slipped 3.66%. The bank is reportedly planning to raise $1 billion by bond issuance as a part of the bank's Medium Term Note program or MTN, a tool that allows raising funds through various products including floating rate notes or on a fixed rate, subject to necessary regulatory approvals.
India's largest private sector bank by net profit ICICI Bank fell 1.67%. India's second largest private sector bank by net profit HDFC Bank eased 0.67%
IndusInd Bank fell 1.33% to Rs 111.50 after 5 lakh shares, or 0.14% equity, changed hands in a block deal at Rs 114.80 per share on BSE.
Metal stocks slipped after LMEX, a gauge of six metals traded on the London Metal Exchange fell 1.95% on Friday, 2 October 2009. Tata Steel (down 2.44%), Hindalco Industries (down 5.96%), Jindal Saw (down 5.69%), Steel Authority of India (down 3.61%), JSW Steel (down 1.88%), Hindustan Zinc (down 2.43%), and National Aluminium Company (down 2.35%), and Sterlite Industries (down 3.27%), declined.
Meanwhile the world's top steelmaker ArcelorMittal in a television interview clarified that it has no plans to exit its planned steel projects in India. Earlier, its chairman Lakshmi Mittal told the Financial Times newspaper in London the steel company is close to pulling out of a $20 billion plan to build two steel plants in India due to difficulties in buying land.
IT stocks were mostly lower after some weaker-than-expected jobs data ignited worries about the health of the US economy. US is the key market for Indian IT pivotals. India's largest software services exporter TCS lost 2.43%.
India's second largest software services exporter Infosys fell 0.25% despite a 1.27% rise in its ADR on Friday, 2 October 2009. Given the improved business conditions and stability in global financial markets, analysts expect Infosys management to revise earnings guidance for the year ending March 2010 (FY 2010) when the company announces Q2 results on Friday, 9 October 2009. At the time of announcing Q1 June 2009 results in July 2009, Infosys projected EPS of between Rs 94.59 to Rs 96 for FY 2010, a decline of between 8.2% to 9.6%.
India's third largest software services exporter Wipro rose 0.22% mirroring a 0.96% rise in its ADR on Friday, 2 October 2009
Realty stocks slipped on worries of increased supply of paper from the sector. DLF (down 4.06%), Indiabulls Real Estate (down 2.55%), Parsvnath Developers (down 5.12%), Unitech (down 4.93%), and Omaxe (down 3.65%), slipped.
Realty companies including Emaar MGF Land, Lodha Developers and Sahara Prime City have filed their draft red herring prospectuses on 29 September 2009 with the market regulator, Securities and Exchange board of India (Sebi), to raise a total of around Rs 9,800 crore through initial public offerings (IPO). In its second attempt at the primary market to raise funds, Emaar MGF is hoping to garner Rs 3,850 crore through its IPO.
Shares from FMCG and pharma pack gained on defensive buying. India's largest cigarette maker by sales ITC jumped 2.58% to Rs 238.50 and was the top gainer from the Sensex pack
Nestle India (up 2.16%), Colgate Palmolive (up 0.99%), Hindustan Unilever (up 0.43%), rose from the FMCG pack.
Tata Tea slipped 1.60% to Rs 877.10 after a block deal of 1.42 lakh shares was executed on NSE at Rs 880 per share. The block deal constituted 0.23% of the company's equity.
Venkys (India) rose 6.53%. Venkateshwara Hatcheries, a promoter group company, has hiked its stake to 49.64% from 49.58% after acquiring 6,155 shares in three different trenches between 29 September 2009 and 1 October 2009 through open market purchases. The company made this announcement during trading hours today, 5 October 2009.
Cipla (up 1.38%), Lupin (up 2.99%), Sun Pharma (up 2.33%), edged higher from the pharma pack
India's largest private sector power generation firm by sales Reliance Infrastructure rose 1.53% on reports the company is considering offering shares of its newly created subsidiaries to the public and looking to bring in strategic financial partners as part of value unlocking. It was the top gainer from the Sensex pack.
The report said that of the six subsidiaries formed as part of a demerger scheme, yet to be approved by the Bombay High Court, the company plans to list at least the power distribution companies, Reliance Energy and Reliance Power Transmission in addition to its metro projects.
Bharti Airtel was the top traded counter on BSE with turnover of Rs 258.68 crore followed by Educomp Solutions (Rs 193.73 crore), Reliance Industries (Rs 155.67 crore), Aban Offshore (Rs 144.14 crore), and HDIL (Rs 129.52 crore).
Cals Refineries clocked highest volume of 5.55 crore shares on BSE. Ispat Industries (1.56 crore shares), Unitech (93.11 lakh shares), Suzlon Energy (86.90 lakh shares) and 3i Infotech (68.78 lakh shares) were other volume toppers in that order.
Videocon Industries rose 1.80% after the company said it will buy an equity stake in loss-making Finnish electronics firm Elcoteq. The announcement was made during trading hours today, 5 October 2009.
Suashish Diamonds was locked at 20% upper limit after the company said its board will meet on 8 October 2009 to consider delisiting of equity shares from the Bombay Stock Exchange. The company made this announcement during trading hours today, 5 October 2009.
Koutons Retail India spurted 13.70%. Last month, some reports had suggested that the company is looking to raise Rs 120 crore to Rs Rs 150 crore by the end of December 2009 through a share sale to fund expansion and reduce debt.
Annual Report - GAIL - 2008-2009
GAIL INDIA LIMITED
ANNUAL REPORT 2008-2009
DIRECTOR'S REPORT
To
The Members
Dear Shareholders,
The setting up of your Company in August 1984 heralded a new era of natural
gas in the country and now your Company has completed 25 years of service
to the nation. It gives me immense pleasure, to present the 25th Annual
Report of your 'Navratna' Company along with Audited Financial Statements
for the Financial Year 2008-09, on behalf of the Board of Directors of your
Company.
SERVICE THE NATION WITH GREEN FOOTPRINTS:
The natural gas infrastructure of your Company plays a significant role in
serving the nation by facilitating equitable geographical distribution of
economic benefits. It provides access to the domestic gas producers, making
gas available to the customers including those who are remotely located,
facilitating monetization and development of gas fields which are otherwise
scattered and devoid of market access. The pipeline network has created
choice for customers by providing cheaper, environment-friendly alternative
fuel and has reduced import-dependency as natural gas has substituted
liquid fuels such as Naphtha, fuel oil, etc.
Natural gas infrastructure developed by your Company over the years has
touched the life of common man in many ways, be it social, economic or
environmental aspects, The development has not only supported various
industrial segments like power and fertilizer, but also helped to further
expand and meet the demand in these sectors. It has also helped in
improving the quality of life in the alarmingly polluted cities like Delhi,
Mumbai, Agra, Firozabad, etc. In addition to the direct benefits, the
indirect benefits as a result of these infrastructural developments by your
Company, has helped in social development in the rural areas by extending
basic amenities.
Your Company has also spearheaded the spread of City Gas and Piped Gas
network in the country which has helped in bringing down pollution levels
in metros such as Delhi and Mumbai. The pipeline network of your Company
caters to the gas consumers in the states of Gujarat, Maharashtra,
Rajasthan, Madhya Pradesh, Delhi, Haryana, Uttar Pradesh, Andhra Pradesh,
Tamil Nadu, Assam and Tripura.
Your Company has interest in the business of Natural Gas, LPG, Liquid
Hydrocarbons and Petrochemicals, the latter being value-added products and
diversified into Exploration & Production and City Gas Distribution.
Your Company has made significant contributions to the nation's economy by
supplying natural gas through its pipeline network for:
* Generation of over 11,000 MW of power.
* Production of over 11.5 million tonnes per annum of Urea.
* Production of more than 1 million ton per annum of LPG in the country.
* Over 5.75 lac vehicles in the country today running on CNG supplied by
your Company and over 7 lac households on Piped Natural Gas (PNG) in the
country.
* Production of petrochemicals of around 700,000 tonnes per annum which is
used in the plastics industry.
The overall contribution to the nation has been truly remarkable. With its
robust future plans, your Company is committed to build a green future for
India.
Annual Report - Power Grid - 2008-2009
POWER GRID CORPORATION OF INDIA LIMITED
ANNUAL REPORT 2008-2009
DIRECTOR'S REPORT
Dear Members,
On behalf of the Board of Directors, it is my privilege to present the 20th
Annual Report on the performance of your Company during the financial year
ended on March 31, 2009 along with audited Statement of Accounts, Auditors'
Report, comments on the Accounts by the Comptroller and Auditor General of
India for the reporting period.
Your Company is playing a key role in Indian Power Sector directly
contributing to economic development of the country through the commendable
job it has done in establishing huge and complex transmission network and
as grid operator despite working in tough terrains, hostile weather
conditions etc.; In the process, your Company has developed strong
expertise in various facets of power transmission business including
development, operation & maintenance of large transmission networks and
presently owns & operates around 71,500 ckt. kms. of transmission lines
along with 120 Sub-stations and transformation capacity of about 79,500
MVA. In a short span of only 17 years of commercial operations, your
Company has grown by leaps and bounds and has carved a niche for itself
amongst the largest transmission utilities in the world.
With excellent progress made on all fronts during the year, your Company
has once again exceeded the performance targets set forth under Memorandum
of Understanding (MoU) with Ministry of Power (MoP), Government of India
and is poised to achieve 'Excellent' rating, under MoU 2008-09, continuing
the track record of achieving 'Excellent' rating since signing of its first
MoU for 1993-94 with MoP.
Highlights of achievements of your Company during F.Y. 2008-09 are briefly
mentioned here to give an overview of success achieved in all fronts. The
Company made an investment of Rs. 8,095 Crore during F.Y. 2008-09 exceeding
Budget Estimates (BE) target of Rs. 8,040 Crore set for the Company, an
increase of about 22% of investment made last year (Rs. 6,656 Crore). The
inter-regional power transfer capacity of National Grid was enhanced to
about 20,800 MW from 17,000 MW in F.Y. 2007-08. National Load Despatch
Centre (NLDC), the apex body to ensure integrated operation of the national
power system at national level has been commissioned in Feb., 2009. Our
prestigious consultancy assignment of construction of Transmission line
from Pul-e-Khumri to Kabul in Afghanistan has been completed in Jan., 2009,
within the schedule despite hostile working conditions (passing over Hindu
Kush region at a height of 4000 mtrs above sea level, which is covered with
snow for 9 months in a year).
Your Company has received Three National Awards for meritorious performance
in the field of Transmission Sector for system availability and early
completion of project for the year 2007-08. One gold and one silver medal
was received by NorthEastern Region and Western Region-I Transmission
Systems of POWERGRID for achieving high availability of transmission system
respectively and another Silver medal was conferred to Southern Region-I
for early completion of Gooty-Raichur 400kV D/C line. Her Excellency, the
President of India Smt. Pratibha Devisingh Patil gave away the awards.
POWERGRID has also received IEEMA Power Awards 2009 for 'Excellence in
Power Transmission' & All India Organization of Employers Industrial
Relations Award 2007-08. POWERGRID has also been chosen for the prestigious
'Star' Public Sector Company Award for 2007-08 for its game-changing role
in the industry by Business Standard, a leading financial daily of the
country. Further, POWERGRID has been conferred the 'The First DSIJ PSU
Awards 2009' by Dalai Street Group of Publications for being 'one of the
largest transmission utilities in the world'.
Morning Call - Oct 5 2009
The last two session candlesticks combination called “Bearish Doji Star”, warning of a coming trend reversal. The pattern requires a confirmation by lower closing in the next session. The RSI and the MACD are already showing negative divergence, in spite of this, the index managed to hold above the 13-day moving average. The Nifty Index is still 100 points away from the price objective of the “Ascending Triangle”. The nifty Index had a bullish breakout from the consolidation pattern called “Ascending Triangle” in late August at the 4760 level.
CNX BANK (8861): Strategy: Book Profit at Target: 9000,
A doji star is showing a loss of momentum. This pattern has formed near to the price objective of the “Ascending Triangle” pattern. The index had a bullish breakout form the “Ascending Triangle” on the second week of September at the 7750 level. Further, the indicators are showing negative divergence in the overbought territory.
CNXIT (5174): Strategy: Stay long for Target: 5375 with incremental Stop-loss of 5090
The CNX IT index has formed a spinning top formation after a strong white candle denotes the deliberation. This has confirmed by a brief negative divergence in the RSI which could trigger a brief correction towards the 13-day moving average at the 5000. The index had a bullish breakout from the 9-years descending trendline at the 4750 level. A clear move above the 5100 level will extend the current upward trend to the 5375 level.
USDINR (47.75) - Strategy: Stay short for the Target: 46.70 with a Stop: 48.60
The INR has given the bearish breakout from the three month long “Symmetrical Triangle” (green) with a falling gap which validates the pattern. Further, the RSI is below its support line and the MACD is in bearish mode certified the breakout. This will drag the currency towards the neckline of the major trend reversal pattern “Head & Shoulders” pattern at the 46.70 level.
India 10 Year Govt Bond Yield (7.21). Strategy: Long @ 7.21 for Target of 7.85 with a stop-loss: 7.00
The India 10-year bond yield has been rising after taking the support from the prior lower peak at the 7.00 level. Further, the RSI is above the broken support line hints the correction from the 7.47 level has completed. In September, the yield had a bearish breakdown from the nine months support line at the 7.30 level.
S&P500 (Last: 1057 BBG: SPX) - Strategy: Short in rallies @ 1075, Target: 1040, Stop: 1085
A couple of small real bodies’ candlestick after a strong white candle at the 13-day MA is indicating the lack of buying pressure. Since the past two weeks, the index has been struggling at the three and half month ascending trendline around the 1080 level. Both, the RSI and the MACD are showing negative divergence indicates the limited upside.
VIX Index (25.61, VIX Index) Strategy: Long @ 25.19, Target: 32.00– 40.00, Stop: 21.00
The VIX Index has been forming the “double bottom” pattern at the significant support of the two and half year support line and the 120-week MA at the 23 level since past two weeks. The index is placed at the key resistance level of the 100-day moving average at the 27.10 level. A decisive move above 27.10 will open the way towards the 30ish.
Crude (69.90, CL1 Comdty)
Crude has formed a strong white candlestick which placed above the broken support line of the symmetrical triangle and the 100-day moving average which indicates the failure of bearish breakout. This could open the way towards the upper line of the pattern at the 72.00 level and even further to the 77.00 level.
Dollar Index (DXY, 77.07)-Strategy: Long @ 77.10, Targets: 78.35-81.00, Stop-loss: 76.50
The DXY index is on the verge of bullish breakout from the 7-month long descending trendline at the 77.25 level. The RSI and the MACD are showing the positive divergence increased the chances of bullish breakout from the trendline. Further, the MACD is on the bullish mode supporting for the upward trend.
Nikkei Index (NKY, 9978) Strategy: Short below 9970 for Target: 9950, Stop: 10150
A week long holiday in the China, we replaced the Shanghai Composite Index to Nikkei Index. NKY index had a dual bearish breakout from the head & shoulders pattern and the 6-month long ascending trendline. A Falling window has increased the reliability of breakout. Since past four sessions, the index has been halting at the 100-day moving average at the 9970 level. A clear break of 9970 will open the way towards the 9950-the 38.2% retracement of 7021-10767 advanced rally.
Baltic Dry Index (2220):
The Baltic Dry Index, a measure of cost of hiring ships has been trading below the significant support of the 200-day MA at the 2230 level since over a week. This bearish breakdown would open the way towards the 61.8% retracement at the 2050 level. In early August, the index had a bearish breakdown from the 9-month long rising channel at the 3160 level. A broken 200-day MA is offers a strong resistance at the 2280 level.
Long ABAN Offshore (ABAN IS, 1648) for Targets: 1900 & 2200 and Stop-loss: 1550
Aban has been moving in the form of “Ascending Triangle” over the past four week after a vertical rise (165% rallied from the low of 631 on June-13). A move above the horizontal resistance line at the 1685 level will trigger a bullish breakout and resumed prior uptrend. During the pattern formation volume has been compress; it’s a key characteristic of the pattern. A trendline breakout in the RSI is offering an early indication of the trend reversal and often precedes the price breakout.
Grey Market Premium - Indiabulls Power
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Pipavav Shipyard | 58 | 4 to 4.50 |
| Thinksoft Global | 115 to 125 | 3 to 4 |
| Euro Multi Vision | 70 to 75 | 4.50 to 5 |
| Indiabulls Power | 40 to 45 (Approximate) | 4 to 5 |
Pre Session Commentary - Oct 5 2009
Today domestic markets are likely to open negative as majority of Asian markets have opened with blood bath after the US market reported worst than expected job losses. The severe job losses data has once again raised apprehensions of the economic revival and market participants are most likely to take safe positions. In the domestic arena, one could observe selling pressure at this peak level, however sustained levels of benchmark indices would rely a lot on the movements of Asian and European markets. Domestic markets are likely to trade negative today.
On Thursday, markets closed the today’s session on flat note after exhibiting volatility during the trading as investors booked profit in key stocks. Fall in Asian stocks also weighed on sentiments. Domestic indices were not able to stick on a particular direction on continuous bouts of buying and selling. However, market gained some ground during afternoon session following positive opening of European markets. Besides, investors were booking long positions on abridged trading week. The market will remain close on Friday, 2 October 2009, on account of Gandhi Jayanti. Meanwhile, India’s wholesale inflation rate continued to rise, as increased 0.83% in the week ended 19th September from a year earlier. BSE Sensex ended above 17,100 level and NSE Nifty closed below 5,100 level.
The BSE Sensex closed slightly higher by 7.71 points at 17,134.55 and NSE Nifty ended flat at 5,083.4. BSE Mid Caps and Small Caps closed with losses of 22.15 and 2.86 points at 6,302.01 and 7,587.18 respectively. The BSE Sensex touched intraday high of 17,195.61 and intraday low of 17,059.36.
On Friday, the US stock market closed lower for the fourth consecutive day on the back of disappointing jobs report data. During the month of September, private employers hived off 263,000 jobs from payrolls. However economists had expected a total job loss of 175,000. The worse-than-expected jobs number caused the unemployment rate to increase to 9.8% from 9.7%. The factory orders for the month of August also plunged by 0.8%. As the trading progressed the retreating dollar helped markets bounce back from its severe losses during the morning trade. The green back closed with a loss of 0.2%. Financial stocks gyrated towards north to record modest gain of 1.1% after a loss of 2.1% during the morning trade, however later it managed to close with a minimal loss of 0.1%. US light crude oil futures for November delivery closed down by 1.4% at $69.83 per barrel, on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) slumped by 21.61 points at 9,487.67. NASDAQ index fell by 9.37 points to 2,048.11 and the S&P 500 (SPX) closed marginally lower by 4.64 points at 1,025.21.
The Indian ADRs ended mixed on Friday. In the IT space, Infosys was up 1.27%, Satyam was down 0.80%, Wipro was up 0.96% and Patni was up 0.66%. In the banking space, HDFC Bank was up 0.65% and ICICI Bank was up 2.13%. In the telecom space, Tata Comm was down 0.10% and MTNL was up 1.39%. In the other space, Sterlite was up 1.15%, Tata Motors was down 2.32% and Dr Reddys was down 1.72%.
The FIIs on Thursday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 4,687.90 Crore and gross debt purchased stood at Rs 294.80 Crore, while the gross equity sold stood at Rs 3,179.00 Crore and gross debt sold stood at Rs 78.10 Crore. Therefore, the net investment of equity and debt reported were Rs 1,508.90 Crore and Rs 216.70 Crore respectively.
On BSE, total number of shares traded were 60.74 Crore and total turnover stood at Rs 6,551.16 Crore. On NSE, total number of shares traded were 94.65 Crore and total turnover was Rs 20,111.83 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 40105979 shares, followed by Bharti Airtel with 33938386, Suzlon Energy with 17103048, DLF with 11928373 and Ambuja Cements with 11863148 shares.
On NSE Future and Options, total number of contracts traded in index futures was 502600 with a total turnover of Rs 12,436.92 Crore. Along with this total number of contracts traded in stock futures were 588763 with a total turnover of Rs 20,361.80 crore. Total numbers of contracts for index options were 778302 with a total turnover of Rs 19,734.08 Crore and total numbers of contracts for stock options were 53469 and notional turnover was Rs 1,810.35 Crore.
Today, Nifty would have a support at 4,996 and resistance at 5,050 and BSE Sensex has support at 16,864 and resistance at 17,035.
Pre Market Commentary - Oct 5 2009
Indian Indices are likely to witness some uncertainty this week, as investors are expected to trade cautiously at higher levels and take guidance from IT major Infosys Technologies, which is scheduled to announce its second quarter results this Friday.
US Stocks ended down for the second consecutive session following the weak unemployment data. Both Dow Jones Industrial Average & Nasdaq were down 0.2% & 0.5% respectively.
Asian markets are however trading mixed at this point in time with Taiwan up 0.5% while Nikkei is down 1.4%. Indian ADRs ended mixed with financials ending in positive terrain. Both HDFC Bank & ICICI Bank registered gains of 0.7% & 2.1% respectively. Among Tech ADR’s, while Wipro & Infosys were up 1.0% & 1.3% respectively, Satyam ended down 0.8%. Tata Motors was the biggest loser down 2.4%.
Market seen opening weak on negative global cues
The market may see a weak start as indices adjust to negative global cues after a long weekend. Stock markets were closed on Friday, 2 October 2009, on account of Gandhi Jayanti, thereby resulting into a long weekend. The S&P CNX Nifty futures traded on the Singapore stock exchange were down 69 points.
India's economy is expected to grow between 5.2-5.8% in 2009-10, much lower than last year as the agriculture output is estimated to decline significantly because of drought in 276 districts of the country, an industry paper has said.
The GDP projections for the current fiscal made by the Federation of Indian Chambers of Commerce and Industry (Ficci) are far dismal than the estimates of 6% by the Reserve Bank of India and 6.3% by the Planning Commission.
Telecom stocks may be in action on reports India is unlikely to keep its 7 December 2009 dateline for the auction of 3G airwaves, which are vital for high-end services such as video conferencing and ultra-fast internet on mobiles. The Department of Telecom (DoT) has been unable to complete even the first step to kick off the auctions as per plan.
Most Asian stocks were trading lower today, 5 October 2009 with sentiment hurt by Friday's weaker-than-expected U.S. jobs report. Key benchmark indices in South Korea, Japan, Taiwan and Singapore were down by between 0.03% and 2.75%. However Hong Kong's Hang Seng index was up 0.04%
China's Shanghai Composite index were closed for National Day. The Chinese markets are shut for a week starting 1 October 2009 for National day and Autumn festival celebrations.
US markets ended lower on Friday, 2 October 2009 on disappointing jobs data. The Dow Jones Industrial average dropped 21.61 points, or 0.23% to 9,487.67. The Standard & Poor's 500 Index declined 4.64 points, or 0.45% to 1,025.21 and the Nasdaq Composite index fell 9.37 points, or 0.46% to 2,048.11
In economic data, US employers cut a larger-than-expected 263,000 jobs in September 2009, while unemployment rate rose to 9.8%, matching economists' forecasts, from 9.7% in August 2009.
Back home, 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.
But 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. A number of realty firms, too, are likely to tap the primary market in the coming months.
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.
Divestment of state-run firms by the government may also increase the supply of paper in the market. A decent debut of Oil India on the bourses on Wednesday, 30 September 2009, may boost government's divestment plan. S. Pradhan, the joint secretary of the department of disinvestment, Government of India, on Wednesday said the government plans to sell stakes in at least five state-run firms by the end of the fiscal year in March 2010 following successful IPOs of two firms that raised $1.8 billion.
His statement comes close on the heels of media reports that the government is planning to announce a blueprint for selling its stake in state-owned firms in the first week of October 2009. The policy is expected to suggest how the government will eventually bring down its stake in public sector companies to 75% over a period of time.
Key benchmark indices ended little changed on Thursday, 1 October 2009 after witnessing wild gyrations throughout the day. The BSE 30-share Sensex was up 7.71 points or 0.05% to 17,134.55, its highest closing since 21 May 2009. The S&P CNX Nifty was down 0.55 points or 0.01% to 5083.40.
As per the provisional figures on NSE, foreign funds bought shares worth Rs 976.46 crore and domestic funds sold shares worth Rs 331.63 crore on Thursday, 1 October 2009.
Daily News Roundup - Oct 5 2009
Grasim Industries to spin off its cement business into a separate entity and merge the same with wholly owned subsidiary Samruddhi Cement. (BL)
Under a business restructuring plan, Grasim Industries’ subsidiary Samruddhi Cement to issue one equity share of Rs5 each to every one equity share of Grasim shareholder. (BL)
SBI to raise up to US$1bn from the international market this month through the issue of five year maturity bonds. (DNA)
ABG Shipyard and Bharati Shipyard battle to buy a controlling stake in Tebma Shipyards. (ET)
Supreme Court allowed the substantial change effected by RIL in its stand on the quantity and price of gas from the KG basin to be supplied by it to NTPC mid-way through the gas dispute. (TOI)
Government has asked SAIL to give a specific proposal for its proposed public offering and the PSU's board would discuss the same at a meeting later this month. (FE)
BHEL plans to float a separate subsidiary company for power generation projects. (BS)
SBI cuts deposit rates across the board. (BL)
Ashok Leyland reported a 12% fall in its sales at 5,452 units for September, compared with 6,186 units a year ago. (BL)
UltraTech Cement is planning a follow-on public offer to fund the expansion of its cement business. (BS)
Cairn India, along with its partners ONGC and Tata Petrodyne, may get to develop the discovered Ambe field in Cambay Basin along with ONGC’s North Tapti fields. (BL)
Videocon Industries would buy Finnish company Elcoteq, a contract manufacturer of mobile phones and other electronic items, in a deal estimated at around US$73mn. (FE)
Power Grid Corp. will jointly bid for contracts in West Asia and North Africa along with Qatar’s Venture Gulf Group and Kuwait’s Real Estate Construction and Fabrication Co. (Mint)
Jet Airways may lease out two Boeing 777 aircraft. (BS)
Pantaloon Retail India has booked a total of 22mn sq ft of retail space and plans to make 3mn sq ft operational every year over the next 3-4 years. (DNA)
Ultratech Cement has an investment plan of Rs150bn over the next five years to add about 25mn tons of capacity. (BS)
GE to integrate all its GE Healthcare units in India and South Asia with the existing Wipro GE Healthcare JV. (BL)
RCF is considering a long-term gas procurement partnership with the US$8bn coal-to-liquid fuel project in Orissa being set up by the Tata group and South African firm Sasol. (Mint)
Bajaj Auto September two-wheelers sales jump 15% from a year ago. (BL)
3i Infotech may restructure its existing debt of about Rs 12bn. (DNA)
Air India, which is seeking a bailout package from the government, has decided to lease out seven of its aircraft to raise additional funds. (DNA)
Parsvnath Developers raises Rs1.7bn via QIP. (FE)
GAIL India has tied up funds for a petrochemical project in Assam being set up by its subsidiary. (FE)
BSNL, MTNL join Zain bid consortium. (BS)
Arvind Limited plans to consolidate its other verticals like garments and real estate. (BS)
Government may cancel coal block allotted to Binani Cement. (BS)
Bajaj Auto to phase out CNG one toner 3 wheeler in Gujarat. (BS)
Paramount Airways is looking to acquire GoAir, in a cash and stock deal. (BS)
Vishal Retail approaches its lenders to undertake a debt restructuring process to revive the company. (ET)
National Aluminium India’s lowered prices by Rs3,000 per metric ton. (ET)
Aircel enters tower sharing deal with BSNL. (BL)
Foreign exchange reserves fell US$860mn to US$280bn for the week ended September 25. (BL)
Estimates by the Retailers Association of India show organized retail has grown 20% in Q2 FY09. (FE)
India's mutual fund industry witnessed a minor dip in AUM for September, largely due to redemption pressure from the banks. (FE)
TRAI, in its recommendations to the government next month, is expected to suggest ways to bring more consolidation in the sector by way of dropping two clauses that restrict telecom M&As. (FE)
The government is unlikely to keep its December 7 date for 3G auction, with DoT unable to complete the first step to kick off the process.
The government announces Rs3bn initiative to promote domestic manufacture of medical devices. (ET)
The country’s exports continued to slide for the eleventh month in a row, in August, though the pace of decline slowed to settle just under 20%. (BL)
Grey skies, blue bulls!
In the sky, there is no distinction of east and west; people create distinctions out of their own minds and then believe them to be true.
Monday morning blues are back. Just when one thought the monsoon was over, comes the bolt from the blue. Unexpected stormy weather has been wrecking havoc in South and West India. Although the torrential rains have brought some relief from searing heat, the timing is unwarranted. This is not good news in a year when the overall farm output is likely to take a hit and food inflation is already pretty high. It will be interesting to see what stand the Government and the RBI take to tackle spiraling prices.
We expect a soft opening due to weak global cues. US stocks fell last week owing to disappointing economic reports, particularly on the jobs front. The big catalyst in the near term will be the quarterly earnings, both here and overseas. What most players are looking for is whether the results will justify the market euphoria. We are inclined to believe there would be more positive surprises. Brace for some more volatility after a six-and-a-month rally. Investors could well be wondering if a bigger selloff is on the cards, but any selling is unlikely to be a sharp one.
RCOM's leadership team is scheduled to announce strategic and progressive development to recent events.
FIIs were net buyers of Rs9.76bn in the cash segment on Thursday on a provisional basis. The local funds were net sellers of Rs3.31bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs358.6mn. On Wednesday, FIIs were net buyers of Rs15.08bn in the cash segment. The net FII investments in Indian stocks this year have crossed $12bn.
US stocks closed lower on Friday, capping second successive week of losses, as investors worried that a worse-than-expected jobs report was further evidence that the rally has run ahead of improvement in fundamentals.
The Dow Jones Industrial Average lost 21.61 or 0.23% to 9,487.67 while the S&P 500 index was down 4.64 or 0.45% to 1,025.21 and the Nasdaq Composite index shed 9.37 or 0.46% to 2,048.11.
Since the rally highs were hit, US stocks have lost about 5%. Stocks may need to ease further over the next few weeks, but the pullback would be sufficient to bring buyers back in to push the market higher.
US stocks got hammered on Thursday after weaker-than-expected readings on manufacturing and jobless claims sparked worries about the pace of the economic recovery. The Dow closed down 204 points.
Stocks are also vulnerable to a bit of selling after a strong July through September period in which the Dow and S&P 500 both jumped 15%, their biggest quarterly gains in more than a decade. The Nasdaq gained 15.7%, its best quarterly performance since 2003.
The advance was part of a bigger run up that has propelled the leading US indexes for roughly seven months straight. The advance has been driven by slowly improving economic news and tremendous amounts of fiscal and monetary stimulus.
But lately, a number of the reports have been missing expectations, including readings on jobs, manufacturing and consumer confidence earlier this week.
Since bottoming at a 12-year low March 9, the S&P 500 has gained 51.2%, and the Dow has gained 45% as of Friday's close. After hitting a six-year low, the Nasdaq has gained nearly 61%.
Employers cut 263,000 jobs from their payrolls in September after cutting a revised 201,000 in August, the Labor Department reported Friday morning. Economists were expecting 175,000 jobs cuts, on average.
The unemployment rate, generated by a separate survey, rose to 9.8%, a 26-year high. That was in line with economists' forecasts and up from the 9.7% rate in August. Most economists expect the national unemployment rate to hit 10% by year end, although in a number of states it is much higher.
A separate government report showed that factory orders plunged in August versus forecasts for a rise. The Commerce Department said factory orders fell 0.8% versus forecasts for a flat reading. Factory orders rose 1.4% in the previous month.
Troubled lender CIT launched a debt-exchange plan as part of its efforts to restructure and avoid bankruptcy. But the company said if the plan is not successful, it will likely file for Chapter 11 protection.
Apple shares gained after both Morgan Stanley and UBS issued bullish notes on the company's forecast.
The dollar tumbled versus the euro and the yen, resuming its recent plunge against a basket of currencies.
US light crude oil for October delivery fell 87 cents to settle at $69.95 a barrel on the New York Mercantile Exchange.
COMEX gold for December delivery rose $3.60 to settle at $1,004.30 an ounce. Gold closed at a record high of $1,020.20 two weeks ago.
Treasury prices tiptoed higher, lowering the yield on the benchmark 10-year note to 3.21% from 3.18% late on Thursday.
Global markets tumbled. In Europe, London's FTSE 100 lost 1.2%, France's CAC 40 lost 1.9% and Germany's DAX lost 1.5%. Asian markets declined as well, with the Japanese Nikkei losing 2.5%.
Indian markets ended in the green extending gains for second straight trading session. The strong upswing was seen despite overnight losses on Wall Street and weak cues from the Asian markets.
The opening moments of today’s session was indeed dominated more by Oil Indias listing. However, as the day progressed the buying spree spread all over Dalal-Street. Bulls were on a roll led by the banking, Auto, Capital Goods and Metal stocks. Even the Mid-Cap and the Small-Cap stocks were in demand.
However, the FMCG and select Consumer Durables stocks were under selling pressure.
Heavyweights like SBI, ICICI Bank, Maruti and M&M lifted the Sensex and Nifty to end at new 52-week high.
The BSE Sensex surged 274 points or 1.6% at 17,126 after touching a high of 17,143 and a low of 16,868. The index opened at 16,868 against the previous close of 16,853. The NSE Nifty added 77 points to shut shop at 5,084.
In Asia, the Nikkei in Japan was up 0.3%, while Australia's S&P/ASX ended lower by 0.2% at 4,743. Shanghai SE Composite in China was up by 0.9% at 2,779. However, the Hang Seng index in Hong Kong ended lower by 0.3% at 20,955.
In Europe, stocks were in the green. The FTSE in the UK was up 0.6%, The DAX in Germany was up 0.5% and the CAC 40 index in France added 0.6%.
Coming back to India, among the BSE sectoral indices, the Bankex index was the top gainer, adding 3.7%, followed by the Auto index that was up 2% and the BSE Capital Goods index was up 1.8%.
Among the major losers were, BSE FMCG index down 0.5% and BSE Consumer Durable index marginally down 0.3%.
The BSE Mid-Cap index gained 1% and the BSE Small-Cap index was up 1%.
Among the 30-components of Sensex, 26 stocks ended in the green and 4 ended in the negative terrain. Among the major gainers were SBI, ICICI Bank, Maruti, M&M, Sterlite and Wipro.
On the other hand, ONGC, ITC, Grasim and Bharti Airtel were among the major laggards.
Outside the frontline indices, the big gainers in the broader market were Central Bank, Bhushan Steel, BEL, OBC, IOB and UCO Bank. On the other hand, losers included REI Agro, Marico, GSPL, MRPL and Dabur.
Shares of Oil India which began trading on the Indian bourses at Rs1,105 per share finally ended recording healthy gains. The stock surged to end at Rs1140 translating into a premium of 8.5%
The initial public offer of Oil India had received robust response, it got subscribed nearly 31 times, generating demand for shares worth over Rs855.76bn.
The portion reserved for qualified institutional buyers got subscribed 54 times, while the non-institutional and retail investors bid for 9.77 times and 114 times respectively of the shares on offer.
Shares of Wockhordt Pharma shot up by over 7.5% to Rs194 after the company received tentative approval from the US FDA for marketing the 0.4mg capsules of Tamsulosin Hydrochloride, which is used for treating Benign Prostatic Hyperplasia (BPH or non-cancerous enlargement of prostate).
Tamsulosin is the generic name for the brand Flomax, marketed in the United States by Boehringer Ingeiheirn. The patent on this product will expire on April 27. 2010 and Wockhardt will launch the product immediately thereafter.
The stock opened at Rs184 and made an intra-day high of Rs197 and a low of Rs183. Total traded volumes stood at 0.3mn shares.
BHEL won an order worth Rs2.7bn for a 120 MW Cogeneration Power Plant, to be set up at Grodno in Belarus, has been received from Grodnoenergo, which is a state enterprise of Republic of Belarus.
Shares of BHEL gained by 2.3% to Rs2325. The stock opened at Rs2279 and made an intra-day high of Rs2334 and a low of Rs2279. Total traded volumes stood at 0.14mn shares.
Shares of L&T gained by 2.2% to Rs1683 after reports stated that the company was planning to raise US$600mn from institutions through equity issuance. Reports also stated that the company has developed expertise to manufacture nuclear power plants of 3,000-4,000MW says Chairman, AM Naik.
Reliance Communications & Microsoft have entered into a strategic partnership to offer Windows Mobile Solution on Reliance’s wireless networks.
According to this agreement, Microsoft will offer its productivity solutions to Reliance customers including push email support, chat, photo-sharing, content back-up and other applications.
Shares of RCom gained 3% to end at Rs308. The stock opened at Rs300 and made an intra-day high of Rs310 and a low of Rs299. Total traded volumes stood at 2.4mn shares.
Siemens bagged two orders from Power Grid Corporation of India Ltd amounting to Rs3.6bn for turnkey 756KV substations each at Gaya in Bihar and Ranchi in Jharkhand. The projects will be commissioned in 27 months.
Shares of Siemens edged higher by 0.5% to Rs557. The stock opened at Rs555 and made an intra-day high of Rs561 and a low of Rs550. Total traded volumes stood at 0.14mn shares.
HCC signed a MoU with the international engineering and project management company AMEC plc (AMEC) to jointly explore the application of consulting and EPC services for the establishment of nuclear power plants in India.
The stock gained 1% to end at Rs131.5, it opened at Rs131 and made an intra-day high of Rs133 and a low of Rs128. Total traded volumes stood at 1.7mn shares.
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