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Tuesday, October 06, 2009
Shree Ganesh Jewellery House plans IPO
Plans to issue 1.42 crore equity shares of face value of Rs 10 each
Shree Ganesh Jewellery House, a jewellery maker and exporter, has filed for regulatory approval for its initial public offering of 1.42 crore shares. The issue consists of a fresh issue of 1.21 crore equity shares and an offer for sale of 21.30 lakh equity shares by Mauritius based Credit Suisse Pe Asia Investments. The net issue will constitute 23.52% of the fully diluted post issue paid-up capital of the company. Foreign financial service firm Credit Suisse had invested Rs 80 crore in the company for buying 10.99% equity in March last year.
The firm plans to raise funds to expand operations and diversify into newer products and geographies
Shree Ganesh Jewellery House is planning to set up a gold refinery plant in West Bengal with an annual installed capacity of 1,000 kg of gold. The gold refinery facility, which the company plans to set up, would refine pre-used gold, which would subsequently be utilised as raw material to manufacture jewellery. Currently, the company procures refined gold from suppliers like Al-Marhaba Trading FZC, the Bank of Nova Scotia, the Standard Chartered Bank, apart from the State Trading Corporation of India.
Shree Ganesh Jewellery House is one of the largest manufacturers and exporters of handcrafted gold jewellery in India. The company's manufacturing units are located at Manikanchan special economic zone (SEZ), West Bengal which is known for the availability of craftsmen (karigars skilled in the manufacture of handcrafted jewellery. The company also carries retail marketing of its own products through its branded stores Gaja. Middle East, Singapore and Hong Kong are the major export market for the company's products.
Mandhana Industries files for IPO
To issue 83 lakh equity shares of face value Rs 10 each
Textile and garment maker Mandhana Industries plans to raise funds through public offer to meet its expansion projects and has filed draft red herring prospectus (DRHP) with Securities and Exchange Board of India (Sebi).
Mandhana Industries plans to issue 83 lakh equity shares of face value Rs 10 each at a price to be decided later. The company has placed 6.56% of post-issue fully diluted equity with Axis Bank on a preferential basis to raise Rs 25 crore
Mandhana has textile and garment manufacturing facilities located at Mumbai and Bangalore, respectively.
The company plans to raise funds to set up a new garment manufacturing facility and expand its existing yarn dyeing and weaving facility at an estimated capital expenditure of Rs 206 crore
Turnover spurts
Nifty October 2009 futures at premium
Nifty October 2009 futures were at 5038.90 at a premium of 11.50 points as compared to the spot closing of 5027.40. Turnover in NSE's futures & options (F&O) segment jumped to Rs 88,732.60 crore from Rs 56,090.77 crore on Monday, 5 October 2009.
Reliance Infrastructure October 2009 futures were at premium at 1293.80 compared to the spot closing of 1286.90.
ICICI Bank October 2009 futures were at premium at 942.30 compared to the spot closing of 940.
Bharti Airtel October 2009 futures were at premium at 359.20 compared to the spot closing of 357.20.
In the cash market, the S&P CNX Nifty rose 24.20 points or 0.48% at 5027.40.
Asian markets take a hop on Tuesday
Sydney surge after RBA's rate cut while Sensex, NZX 50, Nikkei follows with gains
Stock market in Asian region registered rose for the first time in four days on Tuesday 6 October 2009, after US service industries returned to growth following 11 months of contraction and commodity prices gained.
On Wall Street, stock markets broke out of a two-week funk Monday after the Institute of Supply Management said its services index rose to 50.9 in September from 48.4 in August. A reading above 50 shows activity is expanding. The index hadn’t signaled growth since August of last year
U.S. stocks were also boosted by a Goldman Sachs report that talked up the prospects of banks as investors scrounged for any positive news after being jolted by last week’s dire report on climbing unemployment. The Dow rose 112.08, or 1.2%, to 9,599.75, its first gain in four days. The broader Standard & Poor’s 500 index rose 15.25, or 1.5%, to 1,040.46, while the Nasdaq composite index rose 20.04, or 1%, to 2,068.15.
In the commodity market, crude oil rose for a second day in New York as the dollar’s decline bolstered the appeal of commodities as a hedge against inflation.
Crude oil for November delivery rose as much as 74 cents, or 1.1%, to $71.15 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $70.80 a barrel at 3 p.m. Singapore time.
Brent crude oil for November settlement rose as much as 63 cents, or 0.9%, to $68.67 a barrel on the London-based ICE Futures Europe exchange. It traded at $68.40 a barrel at 3:01 p.m. Singapore time.
Gold, trading near a record in London, may advance for a third day as a tumbling dollar spurs demand for the precious metal as an alternative investment. Immediate-delivery bullion rose as much as $4.35, or 0.4%, to $1,021.65 an ounce, the highest price since 17 September 2009, and was at $1,019.25 by 9:23 a.m. local time. December gold futures were 0.2% higher at $1,019.70 an ounce on the New York Mercantile Exchange’s Comex division.
In the currency market, Aussie surged to new 2009 high against dollar after RBA unexpected hikes interest rates from 3.00% to 3.25%. Elsewhere, dollar remains pressured across the board. Aussie's strength is leading other major currencies to rise against the greenback.
The Japanese yen strengthened against major currencies. The Japanese yen was quoted at 88.99 against the greenback, 130.73 against the euro, and 142 against pound.
The Hong Kong dollar was trading at HK$ 7.7501 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$7.85 to the U.S. dollar.
In Sydney trade, the Australian dollar climbed to its highest since August 2008 after the central bank raised borrowing costs, the first interest-rate increase among the Group of 20 nations, boosting demand for the country's assets.
Australia's currency rose as high as 88.66 U.S. cents, the most since 11 August 2008, before trading 1% stronger at 88.64 cents as of 4:12 p.m. in Sydney, from 87.79 cents in New York yesterday. The Australian dollar advanced 0.5 per cent to 79.02 yen. At the local 5 p.m. close, the Aussie dollar was even strong buying 88.75-78 US cents, up from Monday's close of 87.34/39 US cents.
In Wellington trade, the New Zealand dollar rose strongly even though the Reserve Bank of Australia raised its official cash rate to 3.25% from 3%. The NZ dollar was at US72.10c around midnight last night and rose to US73.20c by 8am when other currencies had barely moved. It was US73.35c at 5pm from US72.01c at the same time yesterday.
The South Korean currency closed at 1,170.3 won to the greenback, up 3.4 won from Monday's close, as the local economy was seen to make a fast recovery. The won’s ascent is the highest since 26 September 2008.
The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.1520, 0.1030 up from Monday’s close of NT$32.2550.
In the regional equity market, Asian equity markets mostly advanced inspired by solid gains for U.S. stocks, though some markets had slipped off earlier highs or were trading lower.
In Japan, shares market finished the choppy session up, snapping three days of loosing streak lifted by bargain hunting primarily in financials and exporters, but gains were subdued, hurt by concern about the effects of a strong yen on the economic recovery. Recent slide in market brought buying interest from investors seeking bargains. At the closing bell, the Nikkei 225 Stock Average index rose 17.31 points or 0.18%, to 9,691.8, while the broader Topix was up 4.35 points, or 0.5%, to 871.63.
The Japanese finance minister Hirohisa Fujii said on Tuesday that the government has managed to scrape together more than 2.5 trillion yen from the 14.7 trillion yen extra budget for fiscal 2009, approved under the preceding administration, to fund its key polices. The Democratic Party of Japan-led government has targeted salvaging at least 3 trillion yen from the supplementary budget, which was crafted by the previous administration led by the Liberal Democratic Party.
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 buoyed by strong bargain hunting especially in banks and financials and properties after their US peers rallied following a Goldman Sachs upgrade on the bank sector. Major heavyweight materials and energy shares outperformed, benefited from firmer crude oil and metal prices. The Hang Seng Index jumped 382.46 points, or 1.87%, to 20,811.53, while the Hang Seng China Enterprise added 341.06 points, or 2.93%, to 11,986.11.
On the economic front, according to Land Registry figures released yesterday Hong Kong’s luxury home sales rose to 1,351 in September from 500 in August, as Mainland Chinese residents flocked to buy flats in the city.
In Australia, the shares market came off its highs to finish the session meager with gains across most of the sector. Shares of materials and recourses and energy issues led the rally on the back of firmer base metal and crude oil prices, meanwhile gold miners benefited after precious metal prices bounced overnight. Banking shares pared their earlier gains, meanwhile properties and retailers turned lower after the nation's central bank surprised with a quarter-point rate hike.
At the closing bell, the benchmark S&P/ASX200 index spurted 18.30 points, or 0.40%, to 4,591.6, meanwhile the broader All Ordinaries gained 17.90 points, or 0.39%, to 4,597.2.
On the economic front, the Australian Bureau of Statistics reported Tuesday that country posted a seasonally adjusted trade deficit of A$1.524 billion in August. The deficit was a decrease of 15% or A$259 million from the revised July 2009 deficit.
The Reserve Bank of Australia Tuesday raised its cash rate by 25 basis points to 3.25% amid signs the economy is recovering from the global crisis.
In New Zealand, benchmark closed slightly up trailing a fairly decent performance on the Wall Street overnight. The share market moved forward Tuesday after dipping down for two sessions in a row. The Asian markets were struggling to stay in the positive region trying to track the gains in United States, but were inching down through the day. The New Zealand share market followed the overnight lead of offshore markets, opening firmly today.
The NZX50 advanced 0.41% or 12.82 points to 3151.54. The NZX 15 was up 0.12% or 6.73 points to close at 5774.16.
On the economic front, New Zealand business confidence is surging to its highest level for a decade according to a survey by the New Zealand Institute of Economic Research, adding to a string of positive reports. The September survey results provide strong evidence that "the worst of the recession is over and the economy is on the mend" according to NZIER. A net 27 per cent of firms expected business conditions to improve in the year ahead, according to the NZIER survey, up from a net 14% negative in the previous survey. "Firms expect a significant acceleration of activity in the December quarter," NZIER said.
In South Korea, stocks ended lower as the Australian central bank's decision to lift its key interest rate renewed investor concerns that the local central bank could follow suit. The benchmark Korea Composite Stock Price Index (KOSPI) shed 8.46 points to 1,598.44, extending a losing streak to the fourth-day.
In Singapore, stock market spurted in the first trading session with broad based gains across the sector. Shares of top banks, properties and major blue chip companies outperformed on tracking strong cues from triple digit gains in Wall Street overnight and other Asian bourses. Meanwhile companies reliant on overseas sales bounced after US service industries returned to growth following 11 months of contraction. The blue chip Straits Times Index was ended at 2,611.89, rose 28.16 points or 1.09%.
In Taiwan, stock market extended its winning streak in second session, as foreign investors resumed their buying streak, by investing more in financial and technology related stocks. The benchmark Taiex share index extended its winning streak in second straight session by ending the day higher by 98.07 points or 1.32% in a day, closing the day at 7536.05.
In Philippines, recent spree of positive indicators along with exuberance in the Asian equities helped the Philippines equities register impressive gains today. The benchmark index PSEi escalated 2.30% or 64.98 points to 2,884.46, while the All Shares index went up 1.59% or 28.48 points to 1,818.89.
On the economic front, consumer prices rose at a faster pace of 0.7% in September driven mainly by spikes in food costs. Last month's inflation was higher than August's 0.1%, but lower than the 11.8% registered in September 2008. The September inflation fell within the central bank's forecast of 0.0% to 0.9% for the month. Vegetables and fruits alone soared by 2.1% from 0.7% month-on-month, which the government attributed to low supply amid "excessive rains being experienced since July." Excluding volatile items such as food and fuel prices, core inflation slowed to 2.8% in September from 2.9% in August.
In India, key benchmark indices logged decent gains in what was a highly choppy trading session. Firm global stocks and expectations of strong Q2 September 2009 results aided a strong intraday rebound.
The BSE 30-share Sensex was 92.13 points or 0.55% to 16,958.54. The Sensex opened 12.97 points higher at 16,879.38. The barometer index rose 122.15 points at the day's high of 16,988.56 in late trade. The Sensex lost 244.36 points at the day's low of 16,622.05 in early afternoon trade. The S&P CNX Nifty was up 24.20 points or 0.48% to 5,027.40. Nifty recovered from day's low of 4921.05
Elsewhere, Malaysia's Kula Lumpur Composite index went down 0.31% or 3.72 points to 1212.73 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2528.15.
In other regional market, European shares rose sharply on Tuesday, up for the second straight session, as the banking sector scored a broker upgrade and as miners jumped on higher gold prices. At the regional level, the German DAX index rose 1.6% to 5,594.51, the U.K.’s FTSE 100 index climbed 1.4% to 5,096.67 and the French CAC-40 index advanced 1.3% to 3,721.30.
Markets closed on October 13 2009
In pursuance of clause 2 of Chapter IX of the Bye-Laws and Regulation 2.3 of part A Regulations of the Capital Market Segment and in partial modification of the circular NSE/CMO/054/2008 (download no. NSE/CMTR/11733) dated December 08, 2008, the Exchange here by notifies Tuesday, October 13, 2009 as a trading holiday on account of Assembly Elections in Maharashtra.
Strong comeback at tail end
After opening 13 points higher than the previous close, the 30-stock Sensex soon turned negative. The bellwether remained subdued during the major part of the day and traded more than 200 points lower, as investors booked profits. Teck and information technology (IT) stocks took the major beating. The index faltered by afternoon and slipped to the day's low of 16,622—244 points below the previous close. While the market fluctuated sharply thereafter, firm bullish sentiment and strong buying in heavyweights in late trades helped the Sensex erase its losses. The Sensex finally ended the session 0.55% or 92 points up at 16,959. Nifty was up by 24 points at 5,027.
The market breadth was negative, as 1,698 stocks declined and 1,023 stocks advanced. Seventy seven stocks ended unchanged. Nine of the 13 sectoral indices ended in green. BSE FMCG advanced 3.17%, BSE Metal was up 2.38%, BSE Bankex jumped 1.94%, BSE CG was up 1.66% and BSE Power gained 1.32%. However, BSE Teck dropped 3.78% followed by BSE IT that was down 1.10% and BSE Realty declining by 0.90%.
Among gainers, Hindalco Industries jumped 6.05% to Rs125.30, Hindustan Unilever gained 5.55% to Rs281.65 and Reliance Infrastructure soared 5.17% to Rs1283.95, while ITC, Bharat Heavy Electricals, Sterlite Industries, ICICI Bank, Tata Steel, HDFC Bank, Larsen & Toubro, Mahindra & Mahindra, State Bank of India, ONGC and HDFC gained more than 1% each. However, Reliance Communications slipped 10.64% to Rs268.25, Bharti Airtel slumped 10.22% to Rs359.40, ACC shed 2.07% to quote at Rs797.50, Wipro lost 1.61% to trade at Rs598.70, Sun Pharmaceutical Industries declined 1.52% to Rs1,407.50 and DLF was down 1.38% to Rs416.90.
On turnover front, over 1.78 crore Ispat Industries shares changed hands on the BSE followed by Bharti Airtel (1.48 crore shares), Unitech (1.43 crore shares), Reliance Communications (1.17 crore shares), Idea Cellular (1.16 crore shares) and Suzlon Energy (1.10 crore shares).
Post Session Commentary - Oct 6 2009
Indian market ended on positive zone after showing high instability during the trading session. Stocks managed to regain strength as sentiments turned upbeat with the positive opening of European markets. Firm trading in US index futures also contributed to the upward journey. However, stocks were in negative terrain during most of the trading backed by heavy selling pressure mainly on telecom stocks on concerns that the lower call charges will reduce earnings. TRAI is contemplating ruling per second billing mandatory, which will impact earnings of companies of the sector. Meanwhile, According to Montek Singh Ahluwalia, deputy chairman of the Planning Commission, it is expected that India''s economy will grow at 6.3% or more in the year to March 2010. BSE Sensex ended above 16,900 level and NSE Nifty closed above 5,000 level.
The market rebounded after previous session’s huge losses and started the day on green territory on firm cues from global markets. On Monday, the US stock market bounced back from previous session’s losses to close higher on the back of a better than expected ISM (Institute for Supply Management) services index for September. A strong advance by the financial sector along with weaker US dollar contributed to mark the stock market its first gain in five sessions. Further, Indian benchmark indices soon turned volatile after start and slipped lower backed by selling pressure at higher level. Despite firm start, investors were careful as telecom companies retreated on concern lower call charges will cut earnings. Market managed to regain strength during final trading hours on positive European markets. From the sectoral front, most of the buying was witnessed in FMCG, Metal, Bank, Capital Goods and Power stocks. However, Teck, IT and Realty stocks remained out of favor as witnessed most of selling from these baskets.
Among the Sensex pack 16 stocks ended in green territory and 14 in red territory. The market breadth indicating the overall health of the market remained negative as 1685 stocks closed in red while 1039 stocks closed in green and 79 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 92.13 points or (0.55%) at 16,958.54 and NSE Nifty ended up 24.20 by points or (0.48%) at 5,027.40. BSE Mid Caps closed with gains of 11.64 points at 6,207.43 and Small Caps closed with losses of 53.51 points at 7,372.49. The BSE Sensex touched intraday high of 16,988.56 and intraday low of 16,622.05.
Gainers from the BSE Sensex pack are Hindalco (6.05%), HUL (5.55%), Reliance Infra (5.17%), ITC Ltd (3.52%), BHEL (3.33%), Sterlite Industries (3.03%), ICICI Bank (3.02%), Tata Steel (2.60%), HDFC Bank (1.62%), L&T Ltd (1.56%), M&M Ltd (1.42%) and SBI (1.26%).
Losers from the BSE Sensex pack are RCom (10.64%), Bharti Airtel (10.22%), ACC Ltd (2.07%), Wipro Ltd (1.61%), Sun Pharma (1.52%) and DLF Ltd (1.38%).
On the global markets front, the Asian markets that opened before the Indian market, ended mostly higher. Hang Seng, Nikkei 225 and Singapore''s Straits ended higher by 382.46, 17.31 and 28.16 points at 20,811.53, 9,691.80 and 2,611.89 respectively. However, and Seoul Composite lost 8.46 points at 1,598.44. 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 49.01 points at 3,724.02, in Frankfurt DAX index is trading up 88.90 points at 5,597.75 and in London FTSE 100 is trading higher by 74.54 points at 5,098.87.
The BSE FMCG index increased by (3.27%) or 86.14 points at 2,716.73 on defensive buying. Gainers are HUL (5.55%), Godrej Cons (5.20%), ITC Ltd (3.52%), Nestle Ltd (2.54%) and Colgate Palm (2.25%).
The BSE Metal index ended higher by (2.23%) or 308.86 points at 14,159.28 after LMEX, a gauge of six metals traded on the London Metal Exchange increased 0.20% on 5th October 2009. Main Gainers are Hindalco (6.05%), JSW Steel (3.91%), Sterlite Industries (3.03%), Sesa Goa Ltd (2.83%) and Tata Steel (2.60%).
The BSE Bank index ended up by (1.88%) or 183.39 points at 9,915.50, as Axis Bank (3.04%), ICICI Bank (3.02%), Bank of Baroda (2.75%), IOB (2.07%) and Kotak Bank (2.06%) ended in green.
The BSE Capital Goods index gained (1.48%) or 202.02 points 13,822.93. gainers are Gammon Indi (8.24%), BHEL (3.33%), Thermax Ltd (2.27%), Jyoti Struct (1.89%) and Punj Lloyd (1.82%).
The BSE Power index closed higher by (1.18%) or 35.69 points at 3,068.97. Gainers are Reliance Infra (5.17%), BHEL (3.33%), GMR Infra (1.37%) and Tata Power (0.79%).
The BSE Teck index dropped by (3.36%) or 108.15 points at 3,111.79. Losers are RCom (10.64%), Bharti Airtel (10.22%), Idea Cell (8.29%), HCL Tech (5.39%) and MTNL (5.09%).
Reliance Communication lost 10.64%. The company said on 5th October 2009, that it will offer a flat rate for all calls on its network at 50 paise a minute. The scheme, which will replace all existing schemes, has raised concerns of a fresh tariff war. Under the new scheme - ''Simply Reliance Plan'' - RCom will charge a single rate of 50 every minute for all local, STD, incoming and outgoing roaming, and SMS''es.
Bharti Airtel ended down by 10.22% on reports the auction of 3G telecom services by the government could be delayed. Besides, concern that lower call charges will cut earnings, also contributed to downturn.
Madras Cements Ltd shrunk 4.32% after a block deal of five lakh shares was executed on BSE at Rs. 120 per share.
3i Infotech Ltd advanced 7.62% after the company said Reliance Mutual Fund has hiked stake in the company.
L&T Ltd closed up by 1.56%. The company has bagged new orders totaling Rs. 1,513 crore during the second quarter of FY10.
Four Soft Ltd remained unchanged at Rs. 23. The company''s overseas unit secured an order for one of its software products.
Suzlon Energy Ltd remained unchanged at Rs. 87.10. The company has informed about the signing of a repeat order for 57 MW with Ayen Enerji of Turkey. The order will be supplied with 27 units of Suzlon S88-2.1 MW turbine, to be installed at the Seferihisar and Mordogan projects in east Turkey.
BSE Bulk Deals to Watch - Oct 6 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
6/10/2009 532628 3I INFOTECH TRANSGLOBAL SECURITIES LTD. B 1152547 97.90
6/10/2009 532628 3I INFOTECH OPG SECURITIES P LTD B 907678 98.70
6/10/2009 532628 3I INFOTECH TRANSGLOBAL SECURITIES LTD. S 1153047 97.88
6/10/2009 532628 3I INFOTECH OPG SECURITIES P LTD S 907678 98.80
6/10/2009 524412 AAREY DRUGS KETUL ANOPCHAND ZHATAKIA S 40000 42.66
6/10/2009 517546 ALFA TRANSFR PRITESH BIPIN PATEL B 74123 42.31
6/10/2009 517546 ALFA TRANSFR PRITESH BIPIN PATEL S 74123 42.53
6/10/2009 532166 ALK SECURITI KAUSHIK S SHAH B 1320586 4.92
6/10/2009 532166 ALK SECURITI KAUSHIK S SHAH S 1338170 4.84
6/10/2009 531519 ANKUSH FINST VIPUL VIRENDRA KUMAR PATEL S 65039 4.26
6/10/2009 505029 ATLAS CYC HR VINOD RAHEJA P B 18601 213.90
6/10/2009 505029 ATLAS CYC HR VINOD RAHEJA P S 18601 216.14
6/10/2009 505506 AXON INFOTEC VIJAYKUMAR BANARSI JAYSWAL B 5000 15.52
6/10/2009 526839 CCAP LTD RAJASTHAN GLOBAL SEC LTD B 27668 62.26
6/10/2009 526839 CCAP LTD UDAYANKUMAR N. KOTHARI S 25347 62.14
6/10/2009 521244 CHITRA.SPIN. VARUNKUMAR VISHNUPRASAD PATEL B 53430 2.59
6/10/2009 521244 CHITRA.SPIN. SRECKO INDHAN LIMITED S 25948 2.60
6/10/2009 511672 CLARUS ABHINANDAN JAIN B 25000 10.30
6/10/2009 511672 CLARUS RAM GOPAL RAJGARHIA(HUF) S 43063 10.38
6/10/2009 532363 COMP-U-LEARN HITESH SHASHIKANT JHAVERI B 129880 25.22
6/10/2009 532363 COMP-U-LEARN JMP SECURITIES PVT LTD B 68493 24.42
6/10/2009 532363 COMP-U-LEARN HEMENDRA RATILAL MEHTA B 99000 24.07
6/10/2009 532363 COMP-U-LEARN RAMESH BABU P B 101357 24.36
6/10/2009 532363 COMP-U-LEARN RAMESH BABU P S 78253 24.72
6/10/2009 532363 COMP-U-LEARN HITESH SHASHIKANT JHAVERI S 188933 25.59
6/10/2009 532363 COMP-U-LEARN JMP SECURITIES PVT LTD S 68493 24.15
6/10/2009 532363 COMP-U-LEARN HEMENDRA RATILAL MEHTA S 91000 24.92
6/10/2009 526027 CUBEX TUBING DHEERAJ KUMAR B 65796 15.53
6/10/2009 526027 CUBEX TUBING HEMANT ASHAR S 50000 15.17
6/10/2009 522261 DOLPHIN OFF LAXMIKANT JAMANADAS TANNA B 80239 280.00
6/10/2009 522261 DOLPHIN OFF DHANANJAY MONEY MANAGEMENT SERVICES B 127934 330.15
6/10/2009 522261 DOLPHIN OFF LAXMIKANT JAMANADAS TANNA S 80239 333.20
6/10/2009 522261 DOLPHIN OFF DHANANJAY MONEY MANAGEMENT SERVICES S 127934 333.20
6/10/2009 522261 DOLPHIN OFF CLEARWATER CAPITAL PARTNERS (CYPRUS) LIMITED S 200000 282.86
6/10/2009 533055 EDSERV SOFT BHAVIN Y MEHTA B 84905 151.18
6/10/2009 533055 EDSERV SOFT BP FINTRADE PRIVATE LIMITED B 67037 150.96
6/10/2009 533055 EDSERV SOFT BHAVIN Y MEHTA S 84905 151.25
6/10/2009 533055 EDSERV SOFT BP FINTRADE PRIVATE LIMITED S 70591 150.97
6/10/2009 517477 ELNET TECHNO SAINATH HERBAL CARE MARKETING P.LTD B 42389 51.95
6/10/2009 517477 ELNET TECHNO CHANDRAKANT J VALLAKATI S 25233 51.43
6/10/2009 517477 ELNET TECHNO SHILPA MILIND DESAI S 30000 52.01
6/10/2009 533090 EXCEL INFO PARESH SANATKUMAR RACHH B 147470 76.22
6/10/2009 533090 EXCEL INFO PARESH SANATKUMAR RACHH S 143930 76.42
6/10/2009 532666 FCS SOFTWARE TRANSGLOBAL SECURITIES LTD. B 88326 111.63
6/10/2009 532666 FCS SOFTWARE SUNEET LAL B 101328 109.51
6/10/2009 532666 FCS SOFTWARE OPG SECURITIES P LTD B 318010 111.03
6/10/2009 532666 FCS SOFTWARE TRANSGLOBAL SECURITIES LTD. S 88326 111.30
6/10/2009 532666 FCS SOFTWARE SUNEET LAL S 101328 108.67
6/10/2009 532666 FCS SOFTWARE OPG SECURITIES P LTD S 318010 111.08
6/10/2009 532022 FILAT FASH KALPANA SONU PADYAL B 100000 27.60
6/10/2009 532022 FILAT FASH AADESH COMMODITIES PRIVATE LTD B 100000 27.60
6/10/2009 532022 FILAT FASH CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 40555 27.53
6/10/2009 532022 FILAT FASH AMRUT SECURITIES LTD. S 86617 27.60
6/10/2009 532022 FILAT FASH KEDARNATH AGARWAL S 40000 27.60
6/10/2009 531439 GOLDSTON TEC PREM MOHANLAL PARIKH B 150000 27.83
6/10/2009 509152 GUJARAT RECL GANDHI SECURITIES & INVESTMENT PVT LTD B 10000 553.00
6/10/2009 509152 GUJARAT RECL SMITA JANAK THACKER S 10000 553.00
6/10/2009 524314 GUJRAT TERCE PINAL CHAMPAKLAL SHAHPINAL B 25000 8.97
6/10/2009 524314 GUJRAT TERCE SETU SECURITIES PVT LTD B 25001 8.97
6/10/2009 524314 GUJRAT TERCE MANJULA NILKHANTH SHAH B 75000 8.97
6/10/2009 524314 GUJRAT TERCE MUNIR AJANI B 25000 8.97
6/10/2009 524314 GUJRAT TERCE SETU SECURITIES PVT LTD S 25001 8.97
6/10/2009 524314 GUJRAT TERCE NATWAR P PRAJAPATI S 200000 8.97
6/10/2009 523467 JAI MATA GLA PRABHUDAS LILLADHER P LTD. S 35000 4.35
6/10/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD S 16532 4.35
6/10/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 320141 6.94
6/10/2009 530255 KAY POW PAP GOPINATH SHARMA B 67149 6.91
6/10/2009 530255 KAY POW PAP SUMAN GUPTA B 86651 6.87
6/10/2009 530255 KAY POW PAP OMPARKASH GUPTA B 53828 6.77
6/10/2009 530255 KAY POW PAP NARESH GUPTA B 54241 6.95
6/10/2009 530255 KAY POW PAP SATISH KUMAR GUPTA B 293404 7.25
6/10/2009 530255 KAY POW PAP SUNDERDASS AGARWAL B 111250 7.11
6/10/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 320141 7.23
6/10/2009 530255 KAY POW PAP GOPINATH SHARMA S 53696 7.02
6/10/2009 530255 KAY POW PAP SUMAN GUPTA S 71939 6.96
6/10/2009 530255 KAY POW PAP OMPARKASH GUPTA S 93828 7.16
6/10/2009 530255 KAY POW PAP NARESH GUPTA S 54241 7.01
6/10/2009 530255 KAY POW PAP SATISH KUMAR GUPTA S 296727 6.74
6/10/2009 530255 KAY POW PAP SUNDERDASS AGARWAL S 111250 6.79
6/10/2009 530813 KRBL LTD STANDARD CHARTERED BANK MAURITIUS LIMITED A/C EMERGING IND B 170000 132.75
6/10/2009 530813 KRBL LTD RELIANCE COMMODITIES DMCC S 170000 132.75
6/10/2009 524522 LAFAN PETROC HITESH SHASHIKANT JHAVERI S 43000 33.99
6/10/2009 531769 PFL INFOTECH VALJIBHAI BHANUSHALI BHARAT S 25000 8.06
6/10/2009 509839 PUNJAB WOOLC DHARAM ARORA S 179500 5.94
6/10/2009 509839 PUNJAB WOOLC SUSHMA RANIPUNNI S 70705 5.97
6/10/2009 517556 PVP VENT LTD PVP MALAXMI ENERGY VENTURES PRIVATE LIMITED S 1857878 40.73
6/10/2009 511652 RAM KAASHYAP SHOBHA IMTIYAZ DESAI B 52000 16.01
6/10/2009 511652 RAM KAASHYAP SETU SECURITIES PVT LTD S 25000 16.15
6/10/2009 502587 RAMA PUL PAP ONKARNATH AMARNTH KHANDELWAL B 50000 13.96
6/10/2009 530271 RICH CAP FIN PRANAV SARIN B 39900 73.75
6/10/2009 530271 RICH CAP FIN CITYON INFRASTRUCTURE PRIVATE LIMITED S 44200 70.85
6/10/2009 506172 SAMPADA CHEM BHANGOO HARWINDER SINGH B 55000 26.24
6/10/2009 506172 SAMPADA CHEM BHANGOO PREMKAUR NIRMAL B 55000 25.85
6/10/2009 506172 SAMPADA CHEM SHREE SATYANARAIN PROPERTIES PRIVATE LTD S 171000 26.29
6/10/2009 532793 SHREE ASHTA MADHUKAR CHIMANLAL SHETH B 619038 68.20
6/10/2009 503297 SUP SYNCOT I NIKUNJ PRAVIN SHAH B 50000 1.58
6/10/2009 503297 SUP SYNCOT I VSL SECURITIES PVT LTD S 100000 1.58
6/10/2009 503657 VEER ENERGY BINA D PANCHAMIA S 392400 18.00
6/10/2009 531249 WELL PACK PA PANDYA YAMINIBEN M B 22611 274.70
6/10/2009 531249 WELL PACK PA SANTOSH VISHRAM GHADSHI B 25000 274.84
NSE Bulk Deals to Watch - Oct 6 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
06-OCT-2009,3IINFOTECH,3i Infotech Limited,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,BUY,1500000,96.66,-
06-OCT-2009,3IINFOTECH,3i Infotech Limited,TRANSGLOBAL SECURITIES LTD.,BUY,1053892,97.80,-
06-OCT-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,BUY,247341,76.63,-
06-OCT-2009,FCSSOFT,FCS Software Solutions Li,SUNEET LAL,BUY,112593,108.65,-
06-OCT-2009,FCSSOFT,FCS Software Solutions Li,TRANSGLOBAL SECURITIES LTD.,BUY,111976,111.32,-
06-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,16905990,23.23,-
06-OCT-2009,NOVOPANIND,Novopan Industries Ltd,RIBA CONSTRUCTONS PVT LTD,BUY,70000,40.83,-
06-OCT-2009,NUTEK,Nu Tek India Limited,PASSAGE TO INDIA MASTER FUND LIMITED,BUY,410000,100.55,-
06-OCT-2009,ROLTA,Rolta India Ltd.,PHILLIPS HAGER AND NORTH GLOBAL EQUITY FUND,BUY,927205,193.85,-
06-OCT-2009,TATAMTRDVR,Tata Motors DVR 'A' Ord,SWISS FINANCE CORPORATION (MAURITIUS) LTD,BUY,325989,429.44,-
06-OCT-2009,VOLTAMP,Voltamp Transformers Limi,ROYCE VALUE TRUST INC,BUY,85575,809.87,-
06-OCT-2009,3IINFOTECH,3i Infotech Limited,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,1288623,96.73,-
06-OCT-2009,3IINFOTECH,3i Infotech Limited,TRANSGLOBAL SECURITIES LTD.,SELL,1051815,97.90,-
06-OCT-2009,ESCORTS,Escorts India Ltd.,FIDELITY FUNDS MAURITIUS LIMITED,SELL,538873,106.69,-
06-OCT-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,SELL,187810,76.33,-
06-OCT-2009,FCSSOFT,FCS Software Solutions Li,SUNEET LAL,SELL,112593,109.62,-
06-OCT-2009,FCSSOFT,FCS Software Solutions Li,TRANSGLOBAL SECURITIES LTD.,SELL,111976,111.58,-
06-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,16776199,23.21,-
06-OCT-2009,NUTEK,Nu Tek India Limited,BALYASNY SI LIMITED A/C FDI,SELL,410000,100.55,-
06-OCT-2009,PVP,PVP Ventures Limited,PVP MALAXMI ENERGY VENTURES PRIVATE LIMITED,SELL,1715330,43.40,-
Telecom stocks stumble in choppy market
Late buying demand in FMCG, metal and banking shares helped key benchmark indices register decent gains after a steep intra-day slide. Firm global stocks and expectations of strong Q2 September 2009 results aided a strong intraday rebound. High volatility was the hallmark of the day's trading session. The BSE Sensex rose 92.13 points or 0.55%, up 336.49 points from the day's low and off 30.02 points from the day's high. The 50-unit S&P CNX Nifty regained the psychological 5,000 level after falling below that mark at the onset of the trading session.
Despite the broad market recovery, the market breadth remained weak as small and mid-cap stocks failed to keep pace with their large-cap peers. Shares from FMCG pack extended gains for the second day on defensive buying. Shares from banking and metal pack also logged smart gains after an early hiccup. Telecom stocks were hammered for the second running day on worries falling tariffs and increasing competition will hurt the sector's profitability. Stocks from IT and realty pack also faltered.
As per provisional data, foreign funds today, 6 October 2009, sold equities worth a net Rs 156.97 crore. Domestic funds dumped stocks worth a net Rs 767.57 crore
Intraday volatility was immense. The market surged in early trade on a sharp surge in US stocks on Monday, 5 October 2009. A sell-off in telecom stocks sent the Sensex tumbling soon. The market cut losses later. Fresh selling in index pivotals dragged indices to a fresh intraday low in morning trade. The market once again cut losses later. However, the intraday recovery proved short-lived with the Sensex hitting a fresh intraday low in early afternoon trade.
Bank stocks led an intraday rebound in afternoon trade. The recovery gathered steam with the Sensex regaining positive zone in mid-afternoon trade. The market struck a fresh intraday high in late trade. It pared gains later
Stock and sector-specific activity may dominate trade in the coming days based on expectations on Q2 September 2009 results which will start trickling in soon. Auto firms are seen reporting strong Q2 results on the back strong volume growth and on lower input costs. Cement firms, too, are seen reporting good Q2 numbers on the back of volume growth, higher realisations and decline in costs like imported coal. Banks are seen reporting a sedate growth in core lending. A sharp surge in equity markets may help treasury gains for some banks. As far as IT stocks are concerned, the focus in mainly on the guidance from IT bellwether Infosys.
A surprise hike in interest rate by Australia on Tuesday, 6 October 2009, eased pressure on the Reserve Bank of India from holding back on raising its own rates. The RBI may have to reverse its loose monetary policy if inflation surges. The central bank has pumped huge liquidity in the system and drastically cut policy rates in the aftermath of the global financial crisis last year.
The Australian central bank said it was prudent to gradually take back policy accommodation since the worst danger for the economy had passed. It raised its key policy rate by a quarter-point to 3.25%. Australia is the first G20 nation to raise rates since markets crashed after the failure of Lehman Brothers in September last year.
The Reserve Bank of India (RBI) Governor D Subbarao said on Monday, 5 October 2009 that while there was broad agreement that the central bank needs to wind back some of its easy policy stance, there were risks if the move was mistimed. An early exit from the accommodative monetary stance on inflation concerns runs the risk of derailing the fragile growth, while a delayed exit may engender inflation expectations, he said.
On the same day, Planning Commission deputy chairman Montek Singh Ahluwalia said economic recovery and job creation are more important than trying to tame inflation, as prices should ease because a drought is not as severe as first thought.
European markets extended early gains led by banking shares after data showed the US services sector expanded for the first time since 2008. Key benchmark indices in UK, Germany and France were up by between 1.33% and 1.60%
British manufacturing output saw a monthly fall of 1.9% in August 2009, for an 11.3% drop compared to the same month last year, the Office for National Statistics reported today, 6 October 2009. Economists had forecast a 0.4% monthly rise and a 9.1% year-on-year decline. Industrial production fell 2.5% in August 2009 for an 11.2% annual decline. Economists had forecast a 0.3% monthly increase and an 8.6% annual fall.
Most Asian stocks were trading higher today, 6 October 2009 after US stocks rebounded from four sessions of declines, with resource producers such as Rio Tinto getting a boost from a jump in gold and other commodities, while exporters also advanced in Japan and South Korea. Key benchmark indices in Taiwan, Hong Kong, Japan and Singapore were up by between 0.18% and 1.87%. However South Korea's Seoul Composite index fell 0.53%
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 66 points at the opening bell today, 6 October 2009.
US stocks rebounded on Monday, 5 October 2009 after two straight weeks of declines as investors used the recent sell-off as a chance to jump back into the market. A better-than-expected reading on the services sector of the US economy and strong demand for Treasury's first bond auction of the week bolstered the bulls.
The Dow Jones industrial average gained 112.08 points, or 1.18%, to 9,599.75. The Standard & Poor`s 500 index rose 15.25 points, or 1.49%, to 1,040.46 and the Nasdaq Composite index advanced 20.04 points, or 0.98%, to 2,068.15.
In economic data, the Institute for Supply Management's services sector index rose to 50.9 in September 2009 from 48.4 in August 2009. The reading indicates expansion in the sector after 11 straight months of contraction and was better than the 50 economists had expected. The report detailed that the new-orders index and the business activity index both hit their highest levels since October 2007. The new-orders index rose to 54.2% in September 2009 from 49.9% in August 2009. The business activity index rose to 55.1% from 51.3%.
Back home, the International Monetary Fund (IMF) may reportedly raise its 6.8% growth forecast for the 2010-2011 fiscal year as domestic demand and exports pick up. The IMF expects economic growth of 5.8% for 2009-10. India's growth slowed to 6.7% in 2008-09 as the global downturn hit harder than expected, after growing at 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 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 stocks, a section of the market is concerned that a glut in share sales may suck liquidity from the secondary market. As per reports, 30 companies have filed their draft red herring prospectuses in September 2009 with market regulator Securities & Exchange Board of India (Sebi) for raising funds through initial public offering.
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 over Rs 50,000 crore through initial public offers (IPOs), follow-up public offers, divestment of stake sale by the government in the second half of the current financial year. Reliance Infratel also announced on 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. 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.
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. Stock exchanges would remain shut on 13 October 2009 in view of the General Assembly Elections.
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.
Meanwhile, the Bombay Stock Exchange (BSE) on Monday, 5 October 2009 announced a differential pricing structure for its broker-members, while cutting transaction fees in the cash segment to boost trading volumes. For passive orders, defined as orders already existing in the order book at the time of trade matching, the transaction charges will be reduced from Rs 3.50 per Rs 1-lakh turnover to Rs 2.25 per Rs 1-lakh turnover. For active orders (buy or sell), defined as incoming orders that are matched against the passive orders, the transaction charges will be reduced from Rs 3.50 per Rs 1 lakh of turnover to Rs 3.25. The changes will be effective from Wednesday, 7 October 2009.
The BSE 30-share Sensex rose 92.13 points or 0.55% to 16,958.54. The Sensex opened 12.97 points higher at 16,879.38. The barometer index rose 122.15 points at the day's high of 16,988.56 in late trade. The Sensex lost 244.36 points at the day's low of 16,622.05 in early afternoon trade.
The S&P CNX Nifty was up 24.20 points or 0.48% to 5,027.40. Nifty recovered from day's low of 4921.05. Nifty October 2009 futures were at 5038.90 at a premium of 11.50 points as compared to the spot closing.
Turnover on BSE surged to Rs 6,353 crore from Rs 5,369.40 crore on Monday, 5 October 2009. Turnover in NSE's futures & options (F&O) segment jumped to Rs 88,732.60 crore from Rs 56,090.77 crore on Monday, 5 October 2009.
The market breadth, indicating the overall health of the market was weak in contrast to a strong breadth in early trade. On BSE, 1710 shares declined as compared with 1057 that rose. A total of 85 shares remained unchanged.
The Sensex is up 7311.23 points or 75.78% in calendar year 2009 as on 6 October 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8798.14 points or 107.81% as on 6 October 2009. FII inflow in the calendar year 2009 totaled Rs 61497.60 crore (till 1 October 2009).
Coming back to today' s trade, the BSE Mid-Cap index rose 0.20% to 6,208 whereas the BSE Small-Cap index fell 0.82% to 7,365.22. Both the indices underperformed the Sensex.
Sectoral indices on BSE displayed mixed trend. The BSE FMCG index (up 3.17%), the BSE IT index (down 1.10%), the BSE Capital Goods index (up 1.66%), the BSE Healthcare index (up 0.56%), the BSE Metal index (up 2.38%), the BSE Power index (up 1.32%), outperformed the Sensex.
The BSE Oil & Gas index (down 0.16%), the BSE PSU index (up 0.26%), the BSE Consumer Durables index (up 0.33%), the BSE Teck index (down 3.78%), the BSE Bankex (up 1.94%), the BSE Realty index (down 0.90%), underperformed the Sensex. The BSE Auto index rose 0.55%, matching the BSE Sensex's rise.
There were as many gainers as losers from the 30-member Sensex pack.
Metal stocks gained after LMEX, a gauge of six metals traded on the London Metal Exchange rose 0.20% on Monday, 5 October 2009. India's largest private sector aluminium marker by sales Hindalco Industries jumped 6.39% to Rs 125.70 and was the top gainer from the Sensex pack. The stock rose on bargain hunting after the stock corrected 8.30% in the preceding two sessions.
Tata Steel (up 3.17%), and Sterlite Industries (up 2.90%), edged higher from the metal pack
Shares from FMCG pack extended gains for the second day on defensive buying. Hindustan Unilever (up 4.68%), Marico (up 1.93%), ITC (up 3.61%), Godrej Consumer (up 4.46%), and Colgate Palmolive (up 1.96%), were the other gainers from the FMCG pack.
Select food processing stocks rose after Prime Minister Manmohan Singh today, 6 October 2009 said there is an urgent need to rationalise and simplify the tax structure on the food processing industry. Nestle India (up 2.46%), Kwality Dairy (up 4.32%), Foods & Inns (up 2.41%), and Saboo Sodium (up 1.46%), rose.
Though primary agricultural commodities are mostly exempted from taxes, processed foods are subjected to multiple levies, he said
Banking shares rebounded from day' low on bargain hunting. India's largest bank by net profit and branch network State Bank of India advanced 1.60% to Rs 2166, after sliding to day's low of Rs 2097.10. 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 second largest private sector bank by net profit HDFC Bank gained 1.34% to Rs 1654 after declining to day's low of Rs 1605 in early trade. India's largest private sector bank by net profit ICICI Bank, too, recovered from its day's low of Rs 893.50 and was settled 3.21% higher at Rs 940.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) was down 0.51% to Rs 2126.10. Nevertheless, the stock recovered from day's low of Rs 2102.90. 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 0.12%.
PSU OMC's declined as rise in crude oil prices will result in higher underrecoveries on domestic sale of petrol, diesel, LPG and kerosene at a controlled price. BPCL (down 1.91%), HPCL (down 1.18%), and Indian Oil Corporation (IOC) (down 0.60%), declined.
Oil exploration stocks rose after crude oil prices edged higher on Monday, 5 October 2009. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) rose 1.23%. India's second biggest state-run oil exploration firm by revenue Oil India was up 0.50%. India's largest private sector oil exploration firm by market capitalisation Cairn India gained 1.60%. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.
Light sweet crude for November 2009 delivery rose 46 cents to settle at $70.41 a barrel on the New York Mercantile Exchange on Monday, 5 October 2009, supported by rally in US stocks weakness in the US dollar
Telecom stocks were under severe selling pressure for the second running day spooked by reports the Telecom Regulatory Authority of India (TRAI) is reportedly planning to make the per second billing a mandatory tariff option for all operators, a move that will benefit customers by potentially reducing call charges and adding transparency to their tariff plans. However this move is likely to impact revenues of telecom service providers.
India's largest cellular services provider by sales Bharti Airtel slumped 10.80% to Rs 357.05 on high volume of 1.47 crore shares. It was the top loser from the Sensex pack. The company's chairman Sunil Mittal said on 5 October 2009 that the mobile services firm would continue to search emerging markets for acquisitions or alliances after its proposed talks for a $24 billion merger deal with South Africa's MTN collapsed last week. However, he declined to comment on speculation that Bharti was now eyeing a stake in Kuwait's Zain.
Meanwhile, Bharti Airtel's Chief Executive Manoj Kohli today, 6 October 2009 said the company expects to reach a total of 20 crore subscribers in less than three years from the present subscriber base of about 11 crore
A reduction in tariffs by Reliance Communications (RCom) also raised concerns of a fresh tariff war. RCom on Monday reduced call charges across networks to a flat 50 paise per minute, heating up the tariff war in a market that is getting increasingly competitive. Its move came after an almost similar tariff cut by Bharti Airtel last month.
RCom tumbled 10.78% to Rs 267.85 on high volume of 1.16 crore shares.
Telecom shares had slumped on Monday, 5 October 2009 with RCom sliding 5.6% and Bharti Airtel declining over 8% on reports the auction of 3G telecom services by the government could be delayed.
Among other cellular services provider, Idea Cellular was down 8.22%, Tata Teleservices (Maharashtra) lost 3.71%, and Mahanagar Telephone Nigam shed 4.87%
3G, or third generation airwaves are vital for high-end services such as videoconferencing and ultra-fast internet on mobiles.
Telecom minister A Raja on Monday, 5 October 2009 said the auction of airwaves to offer third-generation mobile services will be concluded by the end of the financial year, making it clear that the government will miss the 7 December 2009, date to hold the auctions originally scheduled for 2007.
Shares of diversified firm Grasim were unchanged at Rs 2508.80. The stock had tanked over 7% on Monday, 5 October 2009 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. For every share, shareholders of Grasim will get one share of Samruddhi.
Meanwhile, shares of UltraTech Cement rose 0.89% ahead of its board will meet today, 6 October 2009 to consider a merger with the cement unit of Grasim Industries. 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
India's largest cement maker by sales ACC lost 2.86%. The company has raised Rs 300 crore through the issue of 3000 secured non-convertible debentures of the face value of Rs 10 lakh each, on a private placement basis. The bond carries a coupon of 8.45% payable annually and is for a tenor of 5 years. The company made this announcement after market hours on 5 October 2009.
India's largest dam builder by sales Jaiprakash Associates fell 0.39% despite reporting a 13% rise in its cement sales at 692,000 tonne in September 2009 over September 2008.
Cement shares declined after a foreign broker downgraded shares of key cement makers on worries of lower demand. Shree Cement (down 4.05%), Ambuja Cements (down 3.47%), India Cements (down 1.83%), Binani Cement (down 3.70%), Dalmia Cement Bharat (down 3.70%), Prism Cement (down 6.22%), and Madras Cement (down 5.26%), fell.
India's largest engineering & construction company by sales Larsen & Toubro rose 1.88% to Rs 1686. The stock rebounded from day's low of Rs 1621 after the company said its construction division won orders worth Rs 1513 crore in Q2 September 2009. The company made the announcement during trading hours today, 6 October 2009.
India's largest power equipment maker by sales Bharat Heavy Electricals gained 3.71% on fresh buying
India's largest private sector power generation firm by sales Reliance Infrastructure surged 5.47%. As per recent 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.
IRB Infrastructure Developers spurted 7.68% after a foreign brokerage issued a 'buy' rating on the stock by saying the firm will capitalise on spending on highways by the government.
Madhucon Projects jumped 4.59% after the company secured a contract worth $3.9 million from the Government of Nepal for a road project. The company announced the new order win after market hours on Monday, 5 October 2009.
Realty stocks edged lower for second day in a row on worries of increased supply of paper from the sector. DLF (down 1.67%), Sobha Developers (down 4.25%), Parsvnath Developers (down 1.14%), Unitech (down 1.59%), and Omaxe (down 1.27%), 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 Land is hoping to garner Rs 3,850 crore through its IPO.
Select auto stocks gained on the back of healthy monthly sales data. India's top small car maker by sales Maruti Suzuki India fell 0.16%. 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 0.90%. The company's total sales rose 5.77% to 52,513 units in September 2009 over September 2008.
India's largest tractor maker by sales Mahindra & Mahindra rose 1.92%. Total sales of the company rose 10.94% to 28434 vehicles in September 2009 over September 2008. The company unveiled the sales figures during trading hours on 1 October 2009.
India's second largest bike maker by sales Bajaj Auto's rose 1.41%. 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 fell 0.14% after total sales rose 4.16% to 4,01,290 units in September 2009 over September 2008.
IT stocks declined as rupee surged against the dollar. A stronger rupee negatively impacts operating margins of IT firms as the sector earns a lion's share of revenue from exports.
India's largest software services exporter TCS fell 0.89%. The company will pursue larger deals and leverage its full service offerings, its newly appointed chief executive and managing director N. Chandrasekaran said on Tuesday.
India's second largest software services exporter Infosys slipped 0.66% despite 3.01% surge in its ADR on Monday, 5 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 lost 2.27% even as its ADR jumped 4.21% rise in its ADR on Friday, 2 October 2009
The Indian rupee was trading at 47.10, stronger than Monday's closeof 47.52/53
Jet Airways India spurted 10.35% on reports that the company's plan to raise funds from international institutional investors will come up for approval by the Foreign Investment Promotion Board (FIPB) this week. According to reports, the matter is likely to be taken up for discussion at the FIPB's meeting this Friday, 9 October 2009.
Bharti Airtel was the top traded counter on BSE with turnover of Rs 533.21 crore followed by Reliance Communications (Rs 314.75 crore), Reliance Industries (Rs 174.68 crore), ICICI Bank (Rs 160.76 crore), and DLF (Rs 158.55 crore).
Cals Refineries clocked highest volume of 2.13 crore shares on BSE. Ispat Industries (1.78 crore shares), Bharti Airtel (1.48 crore shares), Unitech (1.43 crore shares) and Reliance Communications (1.17 crore shares) were other volume toppers in that order.
Numeric Power Systems jumped 5.22% after the company fixed 15 October 2009 as the record for a liberal 1:1 bonus issue. The company announced the record date during trading hours today, 6 October 2009.
Container Corporation of India rose 1.87% to Rs 1229.80 after a block deal of 50,000 shares was executed on BSE at Rs 1180 per share. The block deal constituted 0.04% of the company's equity
Pyramid Saimira Theatre was locked at upper limit of 5% after the company tied up RDB Group to produce 28 films and 1785 hours of television content in 2010-2011. The announcement was made during trading hours today, 6 October 2009.
Lupin rose 3.95% after the company out-licensed a new drug delivery system to US based drug major Salix Pharmaceuticals. The company made this announcement after market hours on Monday, 5 October 2009.
Indiabulls Power, Pipavav Shipyard Grey Market Premium
| 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 50 (Approximate) | 4 to 5 |
Pre Session Commentary - Oct 6 2009
Today domestic markets are likely to open positive on the back of phenomenal rebound in the US markets during overnight trading and also the Asian markets have opened in green. The positive remarks and increased rating from Goldman Sachs for the US large cap banks have raised hopes of many investors across the globe. On the other hand the weakening dollar could further weigh on the concerns of growth of global economy. Domestic markets are likely to trade positive today.
On Monday, Indian market 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 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.
On Monday, the US stock market closed higher breaking the four consecutive loosing streaks. The weakening dollar gave a lot of support to the stocks at broader level. Specifically financial stocks were in limelight after Goldman Sachs raised their rating on the US large cap banks. Diversified banks finished the session 5.6% higher, simultaneously lifting the broader financial sector to a 3.3% gain and helped it outperform every other major sector. The weak dollar helped the stocks as well as the CRB Commodity Index that gained by 1.3%. The US dollar fell by a drastic 0.5% as against other basket of currencies. In the macro economic scenario, ISM Services Index reported a better-than-expected reading of 50.9. The broad based buying helped the entire 10 major sectors surge higher. Financial, Energy, Materials and Industrials were the leaders of the day with respective gains of 3.3%, 2.2%, 2% and 1.9% respectively. The US light crude oil futures for November delivery closed up by 0.7% at $70.41 per barrel, on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) gained by 112.08 points at 9,599.75. NASDAQ index surged 20.04 points to 2,068.15 and the S&P 500 (SPX) closed higher by 15.25 points at 1,040.46.
Indian ADRs ended higher on Wall Street on Monday. In the IT space, Wipro was up 4.21%, Satyam Computers was up 3.54%, Infosys was up 3.01% and Patni Computers was up 2.02%. In the banking space, ICICI Bank was up 4.86% and HDFC Bank was up 1.41%. In the telecom space, Tata Communication was up 0.96% while MTNL was down 2.19%. In other sectors, Tata Motors was up 3.04%, Dr Reddy''s Labs was up 2.75% and Sterlite Industries was up 1.01%.
The FIIs on Monday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 4,632.50 Crore and gross debt purchased stood at Rs 467 Crore, while the gross equity sold stood at Rs 3,260.40 Crore and gross debt sold stood at Rs 59.10 Crore. Therefore, the net investment of equity and debt reported were Rs 1,372.10 Crore and Rs 407.90 Crore respectively.
On BSE, total number of shares traded were 43.27 Crore and total turnover stood at Rs 5,369.40 Crore. On NSE, total number of shares traded were 81.80 Crore and total turnover was Rs 18,347.14 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 52268900 shares, followed by Bharti Airtel with 39670710, Suzlon Energy with 24659833, Idea Cellular with 10373274 and Hindalco with 8573519 shares.
On NSE Future and Options, total number of contracts traded in index futures was 518425 with a total turnover of Rs 12,497.85 Crore. Along with this total number of contracts traded in stock futures were 530297 with a total turnover of Rs 17,679.03 crore. Total numbers of contracts for index options were 949133 with a total turnover of Rs 24,021.73 Crore and total numbers of contracts for stock options were 59561 and notional turnover was Rs 1,892.16 Crore.
Today, Nifty would have a support at 5,039 and resistance at 5,088 and BSE Sensex has support at 16,941 and resistance at 17,069.
Market seen open firm on positive global cues
Key benchmark indices are likely to see an upbeat start on the back of positive global cues. The S&P CNX Nifty futures traded on the Singapore stock exchange were up 12 points. Also strong outlook for India's economy by International Monetary Fund would boost sentiment.
Asian stocks were trading higher today, 6 October 2009 after US stocks rebounded from four sessions of declines, with resource producers such as Rio Tinto getting a boost from a jump in gold and other commodities, while exporters also advanced in Japan and South Korea. Key benchmark indices in South Korea, Japan, Taiwan, Hong Kong and Singapore were up by between 0.13% and 1.35%.
Chinese markets have been shut since 1 October 2009 for National day and Autumn festival celebrations. Trading will reume on 9 October 2009
US stocks rebounded on Monday, 5 October 2009 after two straight weeks of declines as investors used the recent sell-off as a chance to jump back into the market. A better-than-expected reading on the services sector of the US economy and strong demand for Treasury's first bond auction of the week bolstered the broad-based gains.
The Dow rose 112 points, or 1.2%. The S&P 500 index gained 15 points, or 1.5% and the Nasdaq rose 20 points, or 1%.
In economic data, the Institute for Supply Management's services sector index rose to 50.9 in September 2009 from 48.4 in August 2009. Economists thought it would rise to 50
Back home, the International Monetary Fund (IMF) may reportedly raise its 6.8% growth forecast for the 2010-2011 fiscal year as domestic demand and exports pick up. The IMF expects economic growth of 5.8% for 2009-10. India's growth slowed to 6.7% in 2008-09 as the global downturn hit harder than expected, after growing at 9% or more in the previous three years.
Meanwhile action is also likely to shift to primary market with India Inc raising Rs 55,000 crore from the domestic primary market for the quarter ended September 2009. The money raised for the corresponding quarter last year was around Rs 26,000 crore. As per reports, 30 companies have filed their draft red herring prospectuses in September 2009 with market regulator Sebi for raising funds through initial public offering.
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. 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.
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.
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.
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.
For the stock markets, 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.
The BSE 30-share Sensex fell 268.14 points or 1.56% to 16,866.41 and the S&P CNX Nifty lost 80.20 points or 1.58% to 5003.20, on Monday, 5 October 2009 as stocks played a catch up with global cures after a long weekend.
As per the provisional figures on NSE, foreign funds sold shares worth Rs 310.01 crore and domestic funds sold shares worth Rs 567.75 crore on Monday, 5 October 2009.
Telecom stocks in action today
Telecom minister A Raja said the auction of airwaves to offer third-generation mobile services will be conducted by the end of the financial year, missing a 7 December 2009, deadline targetted earlier. The auctions would generate at least Rs 25000 crore of revenue for the government, he added.
The telecom regulatory authority of India (TRAI) is reportedly planning to make the per second billing a mandatory tariff option for all operators, a move that will benefit customers by potentially reducing call charges and adding transparency to their tariff plans.
Reliance Communications (RCom) said on Monday, 5 October 2009, it will offer a flat rate for all calls on its network at 50 paise a minute. The scheme will replace all existing schemes. Under the new scheme - 'Simply Reliance Plan' - RCom will charge a single rate of 50 every minute for all local, STD, incoming and outgoing roaming, and SMS'es. The call rates would be applicable for all calls made from its CDMA, GSM or its landline phones. The scheme, which opens for subscription on Tuesday, 6 October 2009 will be available for both CDMA and GSM services.
RCom's announcement was after trading hours on Monday. Telecom shares plunged ahead of the announcement that day on reports the auction of 3G telecom services by the government could be delayed. RCom dropped 5.6% to Rs 300.20 and Bharti Airtel tanked more than 8% to Rs 400.30.
The board of UltraTech Cement meets today, 6 October 2009, to a consider a proposal for merger of its cement business with a unit of Grasim Industries which is a part of a plan to consolidate the cement business of the Aditya Birla group under one roof.
Tech Mahindra has reportedly won an IT implementation contract from Saudi Telecom 7010.SE, valued between $40 million to $50 million. The Indian firm has won part of a contract from Saudi Telecom, which is rolling out GSM services in Bahrain.
Bajaj Auto is reportedly planning to set up an assembly plant in a free-trade zone in Brazil next financial year. The company is in the process of studying the site and working out financial details.
Parsvnath Developers is reportedly in talks with various private equity funds to raise around Rs 600 crore by the end of 2009/10 by selling sakes in its projects. A major chunk of the funds will go towards repaying debt.
Ashok Leyland is reported to be in talks with Argentina's Grupo Plaza to set up a joint venture to produce buses and trucks in that country.
NTPC will reportedly need to spend an additional almost half a billion dollars as part of its plans to acquire a South African coal mining firm.
Orbitech, part of the global financial giant Citibank NA, has reportedly sold close to 4% in mid-sized technology firm Polaris in tranches in the open market.
Pre Market - Oct 6 2009
Indian markets ended sharply lower on Monday as investors resorted to profit booking at higher levels. Realty, metals and banks were the worst hit. Mid caps & Small caps too declined in line with the large caps. Today we expect the market to open firm on the back of positive Asian cues with profit booking expected to emerge at higher levels.
US Stocks rallied on Monday, with the Dow, S&P 500 and Nasdaq all gaining at least 1%, as investors used a two-week sell-off as an opportunity to jump back into the market. Both Dow Jones Industrial Average & Nasdaq were down 1.2% & 1.0% respectively.
Asian markets are also trading higher at this point in time with Hang Seng & Taiwan up 0.7% & 1.2% respectively. Indian ADRs too were up across the board with the exception of MTNL which was down marginally. Financials maintained their upward momentum with both HDFC Bank & ICICI Bank registering gains of 1.4% & 4.9% respectively. Tech ADR’s too surged with Wipro & Infosys up 4.2% & 3.0% respectively while Satyam ended up 3.5%. Tata Motors too was up 3.0%.
Daily News Roundup - Oct 6 2009
Rcom launches 50p/min rate for all telecom services. (BS)
Bajaj Auto plans to set up an assembly plant in a free trade zone in Manaus in Brazil in FY11. (BS)
TechM wins US$50m deal with Etisalat DB, the Indian arm of Emirates Telecom for rolling out GSM services in Bahrain (ET)
HCL Infosystems has bagged a 5-year IT outsourcing deal from Fortis Healthcare. (BL)
Lupin has out-licensed a new drug delivery system, developed in-house, to US-based drug major Salix Pharmaceuticals. (BS)
Daiichi signs marketing deal for Mexico with Ranbaxy, the third in recent months. (BS)
ArcelorMittal may exit Orissa & Jharkhand, and may begin a search for alternate sites for its US$20bn green-field steel projects in India. (BS)
Bharati Shipyard has hiked the open offer price to acquire stake in offshore service provider Great Offshore to Rs560 per share. (BS)
Dalmia Cement, the second-largest cement maker in south india has raised over Rs31bn in debt through a consortium of bankers (ET)
Radico Khaitan to seek shareholders approval to raise Rs3.8bn by share sale from domestic and international markets (ET)
Parsvnath to raise Rs6bn by selling stake in realty projects. (BS)
Ashok Leyland is in talks with Grupo Plaza of Argentina to set up a joint venture. (BL)
Madhucon Projects has secured a US$3.9mn order for a road project from the Government of Nepal. (BL)
ACC has raised Rs3bn through private placement of 3,000 secured non-convertible debentures. (BL)
MindTree has entered the mobile products business with the recent acquisition of Kyocera’s captive unit in Bangalore. (BL)
BSNL and MTNL have outlined their terms to buy stakes in Kuwait Zain Telecom group (ET)
Glenmark Generics Ltd, a unit of drug maker Glenmark Pharmaceuticals Ltd, plans to raise Rs 5.75 billion through an intial public offer (FE)
The government has asked SAIL to give a specific proposal for its proposed public offering (FE)
Ultratech board to meet today to consider the proposal from Samruddhi cement to merge the cement business (FE)
FM radio companies have threatened to shut shop soon due to no solution emerging in the legal battle between music companies and private FM radio operators over royalty rates. (BS)
The Supreme Court rejected the plea of Navi Mumbai SEZ Pvt Ltd seeking to restrain Maharashtra from demanding taxes in respect of land acquired for the special economic zone. (BS)
Trai is planning to make the one-second pulse a mandatory tariff option for all operators. (BS)
3G spectrum auction will be delayed further by 3 months as the foreign telecom companies have asked for more time since the auction dates clash with the Christmas break. (BL)
India’s foreign direct investments have increased to US$100bn through equity since 2000 up to July this year. (FE)
Tuesday’s turnaround tide!
No matter what side of the argument you are on, you always find people on your side that you wish were on the other.
Arguments and debates may continue on how genuine the turnaround has been. But what a difference a day makes! If Monday blues had the bulls running for cover, looks like Tuesday will witness a complete turnaround. We expect a higher start owing largely to the firm trend across global markets. The market could turn choppy though, as investors eagerly await the report card from India Inc. and Global Inc. The best strategy to beat the near-term blues would be to take each day as it comes, especially for companies announcing their results.
The underlying trend in the market is still positive despite some reversal in the last few sessions. The sentiment could be hurt by less than spectacular results and economic data. That is particularly the case after the kind of rally we have enjoyed over the past six and a half months. Other big event to watch will be the RBI’s half-yearly policy review. It is most likely to set the tone for the central bank’s moves on interest rates going ahead.
Monetary and economic management will be quite tough as the recovery is still nascent and fragile. Among the concerns for the RBI is the surge in liquidity. This could only add to the already heightened inflation woes. The erratic monsoon has not been helpful at all and could send food inflation spiraling out of control. A gaping fiscal deficit is another cause for worry. Among the positive aspects is an appreciating rupee, which could help the RBI contain imported inflation.
FIIs were net sellers of Rs3.1bn in the cash segment on Monday on a provisional basis. The local funds were net sellers of Rs5.67bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs7.03bn. On Thursday, FIIs were net buyers of Rs13.72bn in the cash segment. The net FII investments in Indian stocks this year have crossed $12.7bn.
US stocks rebounded on Monday after two straight weeks of declines. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all gaining at least 1%. Investors used the recent sell-off as a chance to jump back into the market.
A better-than-expected reading on the services sector of the US economy and strong demand for Treasury's first bond auction of the week bolstered the broad-based gains.
The Dow rose 112 points, or 1.2%. The S&P 500 index gained 15 points, or 1.5% and the Nasdaq rose 20 points, or 1%.
Of the 30 Dow components, 25 gained.
Bank stocks led the advance with the KBW Banking index adding 3.2%.
A roughly seven-month-long rally hit a roadblock at the end of September, with stocks falling for two straight weeks, and the major US indices losing around 5%. The declines were driven by a series of weaker-than-expected economic reports. This was in stark contrast to a period of steadily improving economic news.
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 Monday's close. After hitting a six-year low, the Nasdaq has gained nearly 61%.
In the third quarter alone, the S&P 500 index and the Dow both jumped 15%, the best quarterly performance in a decade. The Nasdaq jumped 15.7%, its best quarterly performance since 2003.
Among stock movers, Brocade Communications rallied 18.8% in unusually active trading on reports that it has put itself up for sale. Both Hewlett-Packard and Oracle were cited as potential buyers, according to the Wall Street Journal.
The Institute for Supply Management's services sector index rose to 50.9 in September from 48.4 in August. Economists thought it would rise to 50.0.
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 rose 46 cents to $70.41 a barrel on the New York Mercantile Exchange.
COMEX gold for December delivery rose $13.50 to settle at $1,017.80 an ounce. Gold closed at a record high of $1,020.20 two weeks ago.
Treasury prices fell late on Monday, with the yield on the 10-year note sticking at 3.22%. Treasury prices and yields move in opposite directions.
The government's sale of $7 billion in 10-year Treasury Inflation Protected Securities (TIPS) saw strong demand, a good sign at the start of a week that brings $78 billion in debt auctions.
The deluge of third-quarter earnings reports due in the week ahead will determine whether the selloff continues or proves to be an entry point for more buyers.
Alcoa unofficially begins the third-quarter reporting period in the US on Wednesday. The Dow aluminum maker is due to report a quarterly loss versus a profit a year ago, reflecting a weak materials sector. Overall, S&P 500 profits are expected to have dropped almost 25% from the third quarter of 2008.
Mineral extractors and telecoms helped European shares to advance for the first time in four sessions. In a session where the pan-European Dow Jones Stoxx 600 index was pretty volatile, the benchmark finished the session up 0.8% to 235.93, with every sector index also closing higher.
The UK's FTSE 100 index recaptured the 5,000 mark, rising 0.7% to 5,024.33. The German DAX index advanced 0.8% to 5,508.85 and the French CAC-40 index rose 0.7% to 3,675.01.
Indian market ended in the red snapping a three-day winning streak on Monday. Like the unexpected stormy weather which wrecked havoc in South and West India, a cold wave of selling in index heavyweights like Bharti Airtel, Reliance Industries and SBI dragged BSE Sensex to end below the 17,000 mark.
Selling was not only seen in India but also in the US and Asia after renowned economist Nouriel Roubini said commodities and stocks may drop in coming months as the gradual pace of the economic recovery disappoints investors. The real economy is barely recovering while markets are soaring, Roubini said.
The Realty, telecom and metals stocks were among the major losers. Even the Mid-Cap and the Small-Cap stocks witnessed some offloading dragging the markets in the last hour of the trading session.
The BSE Sensex slipped 268 points or 1.6% to end at 16,866 after touching a high of 17,062 and a low of 16,835. The index opened at 17,062 against the previous close of 17,134. The NSE Nifty fell 80 points or 1.6% to shut shop at 5,003.
In Asia, the Nikkei in Japan was down 0.6%, while Australia's S&P/ASX ended lower by 0.7% at 4,573. Shanghai SE Composite in China was closed on account of holiday However, Hang Seng index in Hong Kong were gained 0.3%.
In Europe, stocks were in the green. The FTSE in the UK was up 0.3%, The DAX in Germany was up 0.2% and the CAC 40 index in France was down 0.2%.
Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, shedding 3.5%, followed by the Teck index that was down 2.7% and the BSE Metal index was down 2.3%. Even the BSE Mid-Cap index fell 1.6% and the BSE Small-Cap index was down 2.1%.
BSE FMCG index was the only gainer, adding 1.5% during the week.
Among the 30-components of Sensex, 23 stocks ended in the re and 7 ended in the positive terrain. Among the major laggards were Bharti Airtel, Grasim, Hindalco, RCom and DLF.
On the other hand, ITC, Sun Pharma, Reliance Infra and M&M were among the major gainers.
Outside the frontline indices, the big losers in the broader market were TTML, Aditya Birla, GTL Infra, Federal Bank and Andhra Bank. On the other hand, gainers included Koutons Retail, Jet Airways, BEL, IRB and Voltas.
Shares of Grasim Industries sank by over 7% to end at Rs2509 after the company announced that its cement business will be transferred to a subsidiary, Samruddhi Cement Ltd.
Shareholders in Grasim will get one share with a nominal value of Rs5 in the unlisted subsidiary for each share they hold. Samruddhi will propose merging with UltraTech Cement Ltd., which is a part of Aditya Birla.
While, shares of Ultratech Cement slipped by 5% to Rs804 after the company announced that its board will meet on Tuesday, October 6, 2009, to consider a merger with the cement unit of Grasim Industries.
Shares of Jet Airways shot up by over 13% to Rs377 as the company plans to invite global expressions of interest to lease out seven aircraft, the airline's private counterpart Jet Airways has initiated discussions with foreign carriers to lease out two of its wide-body airplanes, stated reports.
"We are in discussions with Oman Air and Etihad for leasing out two of our Boeing 777 aircraft," reports added.
Pratibha Industries secured a contract worth Rs247.2mn for "Supply of API Grade Pipes" from GAIL (India) Ltd. The contract involves 'Manufacture and Supply of 50 km. of Line Pipe of 24 inch diameter as per specification - API 5L, Gr X-70, PSL-2 for its Bawana Nangal Pipeline Project.
Shares of Pratibha Industries gained by 0.8% to Rs211. The stock opened at Rs210 and made an intra-day high of Rs220 and a low of Rs205. Total traded volumes stood at 39,000 shares.
Shares of ACC slipped by 1.6% to Rs814 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.
The stock opened at Rs820 and made an intra-day high of Rs820 and a low of Rs803. Total traded volumes stood at 59,000 shares.
Shares of Reliance Infrastructure have gained by 1% to Rs1216 after the company announced that it may sell shares in its power distribution and metro project units to the public and strategic partners.
Of the six subsidiaries formed as part of a demerger scheme, yet to be approved by the Bombay HC, the company plans to list at least the power distribution companies, Reliance Energy and Reliance Power Transmission, in addition to its Metro projects, stated reports.
The stock opened at Rs1190 and made an intra-day high of Rs1222 and a low of Rs1185. Total traded volumes stood at 0.28mn shares.
Shares of BHEL erased early gains and ended in the red. The stock was down 0.5% to end at Rs2339. The stock hit an intra-day high of Rs2389 after reports stated that the company plans to float a separate subsidiary company for power generation projects.
The company had committed 26% equity participation in multiple supercritical thermal power projects in Tamil Nadu, Karnataka and Maharashtra and is planning similar stakes for projects in Gujarat and MP.
Shares of Arvind Limited surged by over 3% to Rs40.10 after reports stated that the company plans to consolidate other verticals like garments and real estate. Sanjay Lalbhai, chairman and MD was quoted as saying that the company expects government clearances for its real estate projects in next four months.
The company is planning low cost as well as mid priced housing in Khatraj, Jetlaj, Santej and Ahmedabad. "We have around 2 million sq yards of properties coming up in areas like Santej, Khatraj, and Jetlaj, and another 3.5 lakh in Ahmedabad city.
At today's prices, we have a land bank of Rs 600-700 crore," Lalbhai added. By next year, Arvind Ltd. plans to expand its denim fabric manufacturing capacity by 10% to take it to 100mn metres by next year.
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