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Wednesday, October 07, 2009
Asian markets wrap up Wednesday with gains
Sydney, Nikkei, Hang Seng contributes to the regional rally while Seoul, Sensex bucks the trend
Stock market in Asian region pushed up for a second day on Wednesday, 7 October 2009, as gold’s surge to record highs and the dollar's tumble boosted resource shares.
On Wall Street, stocks marched higher as the dollar weakened and gold hit a new high. The Dow Jones Industrial Average finished higher by 132 points, or 1.4% to at 9731, while the S&P 500 advanced 14 points, also 1.4%, to 1055. The Nasdaq Composite ran up 35 points, or 1.7%, to 2104.
In the commodity market, crude oil rose for a third day in New York after an industry report showed a decline in fuel and crude stockpiles in the U.S., the biggest energy-consuming nation.
Crude oil for November delivery rose as much as 88 cents, or 1.2 percent, to $71.76 a barrel in electronic trading on the New York Mercantile Exchange. It was at $71.40 at 2:55 p.m. Singapore time.
Brent crude oil for November settlement rose as much as 89 cents, or 1.3%, to $69.45 a barrel on the London-based ICE Futures Europe exchange. It was at $69.17 at 2:55 p.m. Singapore time.
Gold traded near its record and oil advanced for a third day as investors bought commodities to protect their wealth on speculation the dollar will extend its decline and inflation accelerate. Gold for immediate delivery traded at $1,038.50 an ounce at 11:51 a.m. in Singapore compared to yesterday’s record of $1,043.78. Crude oil for November delivery rose 63 cents, or 0.9%, to $71.51 a barrel, in electronic trading on the New York Mercantile Exchange.
In the currency market, US dollar remains pressured against commodity currencies.
The Japanese yen strengthened against major currencies. The Japanese yen was quoted at 88.61 against the greenback.
The Hong Kong dollar was trading at HK$ 7.7500 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$7.85 to the U.S. dollar.
In Sydney trade, the Australian dollar held near 14-month highs as investors bet on further interest rate rises later this year, with strong economic data further boosting the case for the currency. The Aussie rose as far as 89.10 US cents, just a whisker below a 14-month high of 89.20 US cents hit on Tuesday. It was steady against the yen, however, at 78.96. At the local close, the dollar was buying 88.96-89.01 US cents
In Wellington trade, the New Zealand dollar held near highs it reached in offshore trading on Tuesday night today with the help of a weak US dollar. The NZ dollar was US73.40c at 5 pm from US73.24c at 8am and US73.35c at 5pm yesterday. It rose to US73.80c on Tuesday night; it’s highest since July 2008.
The South Korean currency closed at 1,170.5 won to the greenback, down 0.2 won from Tuesday's close, as suspected intervention outweighed stock buying by foreign investors.
The Taiwan dollar was unchanged against the greenback. The Taiwan dollar was closed at NT$ 32.1800, unaltered from Tuesday’s close of NT$32.1800.
In the Asian equity market, most of the regional stocks ended higher, with resource stocks rallying on the back of strong commodity prices as gold hovered near its record.
In Japan, shares market spurted higher, as investors bet on the global recovery gaining traction following the first rate hike by a G20 nation. Banks and commodities registered the strong gains on bargain hunting and due to rising prices for their products. At the closing bell, the Nikkei 225 Stock Average index rose 107.80 points or 1.11%, to 9,799.60, while the broader Topix was up 14.06 points, or 1.61%, to 885.69.
On the economic front, the Cabinet Office said Japan leading index climbed to 83.3 in August from 82.5 in previous month. The coincident index increased to 91.4 in August from 89.8 in July. Further, the lagging index increased to 83.8 from 82.8 in the previous month.
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 surged with broad based gains across the sector on renewed faith a recovery in the global economy was sustainable. Resource-related shares outperformed, benefited by higher commodity prices amid global economic optimism. The Hang Seng Index jumped 430.06 points, or 2.07%, to 21241.59, while the Hang Seng China Enterprise added 333.31 points, or 2.78%, to 12,319.42.
In Australia, the shares market bounced with broad based gains across the sector as investors bet that yesterday’s interest rate hike is a strong sign the global economy is on the road to recovery. Shares of materials and recourses and energy issues led the rally on the back of sharp gains in base metal and crude oil prices, meanwhile gold miners benefited after precious metal prices hit a record high overnight. Banks and financial sand property trusts augmented as the Australian central bank’s decision to raise interest rates boosted investor optimism about the global economy.
At the closing bell, the benchmark S&P/ASX200 index spurted 104.1 points, or 2.27%, to 4,695.7, meanwhile the broader All Ordinaries gained 98.60 points, or 2.14%, to 4,695.8.
On the economic front, 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.
The Department of Education, Employment and Workplace relations said Wednesday Australia’s monthly leading indicator of employment rose for the fourth consecutive month in October, after falling for a revised 19 consecutive months. The leading indicator climbed to minus 0.934 in October from minus 1.104 in the previous month.
The Australian Industry Group-Housing Industry Association Performance of Construction Index grew by a seasonally adjusted 8.4 points in September to 50.8, scraping past the line that separates expansion from contraction. It was the first time the series registered growth since February 2008, which was attributed to low interest rates, combined with the first homeowners grant.
In New Zealand, benchmark index ended the day in the negative terrain although most of the Asian counterparts were mostly in the green region. The New Zealand share market only managed to edge up in early trade, despite strong gains in stocks in the United States. The NZX50 fell 0.33% or 10.35 points to 3141.18. The NZX 15 declined 0.95% or 54.49 points to close at 5719.66.
On the economic front, bold tax reforms and changes to the mix of monetary and fiscal policy are needed if New Zealand is to rebalance its economy and close the gap with Australia, according to the Treasury’s head. New Zealand needs to overhaul its tax system, bringing down income tax and potentially increasing GST or imposing a land tax, Treasury Secretary John Whitehead told a business audience in Queenstown last month. Speech notes were posted on the department's website today. Combined with slower growth in government spending, that would allow the central bank to keep interest rates lower for longer, which will set the economy on a high-growth path to catch Australia, he said.
In South Korea, stocks closed marginally lower as rallies by commodities producers were offset by falls in tech chips and auto exporters. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 0.44 points, or 0.03 percent, to 1,598, extending its losing streak to a fifth day.
In Singapore, stock market spurted with broad based gains across the sector on tracking strong cues from triple digit gains in Wall Street overnight and other Asian bourses. Shares of banks, properties, and major blue chip outperformed on expectation a rebound in the global economy would fuel demand. Meanwhile companies reliant on overseas sales bounced on renewed faith a recovery in the global economy was sustainable. The blue chip Straits Times Index was ended at 2,634.63, rose 22.74 points or 0.87%.
In Taiwan, stock market rose to a new 15-month intraday high with foreign buying in financial and construction shares on expectations of closer trade ties with China is fuelling gains in Taiwan stocks.
The benchmark Taiex share index extended its winning streak in third straight session by ending the day higher by 72.61 points or 0.96% in a day, closing the day at 7608.66, highest closing since 26 July 2008 when market closed the day at 7811.80.
In Philippines, the stock market extended gains for the second consecutive day, closing almost 3% higher, as investor’s sentiment was boosted by Tuesday's rally on Wall Street sparked by Australia's decision to raise its main interest rate by one-quarter of a point and optimism that the global economy was recovering from recession.
Moreover, positive news on the economic façade also indicated that the impact of global crisis might have bottomed out. Slump in the leading economic indicator slowed down in the third quarter (Q3), an indication that the Philippine economy may be on its way to a slow recovery from the crisis that gripped the global economy starting in late 2008.
The benchmark index PSEi ascended 2.86% or 82.60 points to 2,967.06, while the All Shares index escalated 2.12% or 38.62 points to 1,857.51.
In India, weakness in index heavyweight pulled key benchmark indices to a fresh intraday low in late trade. High volatility was the hallmark of the day's trading session. The BSE 30-share Sensex went down 151.88 points or 0.9% to 16,806.66. The S&P CNX Nifty closed down 41.65 points or 0.83% to 4985.
Elsewhere, Malaysia's Kula Lumpur Composite index went up 0.48% or 5.88 points to 1212.73 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2513.41.
In other regional market, European shares traded higher, shrugging off a lackluster start to the session after gold futures hit another all time high. Major regional European equity markets were also higher, with the U.K. FTSE 100 index 5,142, up 0.1% or 4.44 points at 5,142, the German DAX index up 0.2% or 8.20 points at 5,666 and the French CAC-40 index up 0.3% or 8.87 points at 3,779.
Market Review - Oct 7 2009
Yesterday’s recovery proved short lived as after opening on a positive note, markets saw a sharp selloff in the noon trade and closed nearly 1% down in today’s trade. Sensex lost 151 points to close at 16806, while Nifty ended at 4985, down 41 points. BSE Mid-cap and Small-cap indices, however, gained 1.4% and 0.5% respectively. IT Stocks were under pressure as rupee continued to strengthen against the dollar, touching a level of 46.49 intraday, the highest since Sept. 26, 2008. Metal stocks however gained as weak dollar made the base metals shine. European markets were trading lower by about one third of a percent, while US stocks indices futures were marginally in the green.
BSE Consumer Durable index gained 4.6%, the highest among the sectoral indices, followed by Metal index, which gained 2.3%. IT and Teck indices lost 2.7% and 2% respectively. Sterlite ind and JP Associate were the top gainers among the Sensex stocks, putting on 5.5% and 2.3% respectively, while Wipro and Maruti lost the most, shedding 4.3% and 3.9% respectively. BSE advance-decline ratio stood at 1.1:1.
Nifty October 2009 futures below 5,000
Turnover declines
Nifty October 2009 futures were at 4,974.85, at a discount of 10.90 points as compared to the spot closing of 4,985.75. Turnover in NSE's futures & options (F&O) segment was Rs 81,030.16 crore, lower than Rs 88,732.60 crore on Tuesday, 6 October 2009.
State Bank of India October 2009 futures were at premium at 2,104.45 compared to the spot closing of 2,100.
Tata Steel October 2009 futures were near spot price at 519.10 compared to the spot closing of 520.
Reliance Industries October 2009 futures were at discount at 2,092 compared to the spot closing of 2,097.
In the cash market, the S&P CNX Nifty shed 41.65 points or 0.83% at 4,985.75.
BSE Bulk Deals to Watch - Oct 7 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
7/10/2009 517546 ALFA TRANSFR PRITESH BIPIN PATEL B 169633 46.73
7/10/2009 517546 ALFA TRANSFR MANCHANDA JASPAL B 45000 47.49
7/10/2009 517546 ALFA TRANSFR PRITESH BIPIN PATEL S 169633 47.08
7/10/2009 517546 ALFA TRANSFR MANCHANDA JASPAL S 45000 50.51
7/10/2009 517546 ALFA TRANSFR DYNAMIC STOCK BROKING INDIA PVT LTD S 45885 46.02
7/10/2009 533029 ALKALI NARENDRABHAI AMTRATLAL AMIN B 66429 250.19
7/10/2009 533029 ALKALI NARENDRABHAI AMTRATLAL AMIN S 66429 244.08
7/10/2009 531761 AMULYA LEAS KINOFOLK INDUSTRIES LTD. B 102000 14.55
7/10/2009 531761 AMULYA LEAS MANOHAR LAL GUPTA HUF S 100000 14.55
7/10/2009 524760 ARVIND INTER RANJU MAHESWARI S 50000 9.82
7/10/2009 532047 ASIAN FILMS BHARATH KUMAR BANAVARA ESWARAIAH S 826631 0.34
7/10/2009 505029 ATLAS CYC HR A.K.G. STOCK BROKERS PVT. LTD. B 21347 218.46
7/10/2009 505029 ATLAS CYC HR VINOD RAHEJA P S 30616 217.93
7/10/2009 505029 ATLAS CYC HR A.K.G. STOCK BROKERS PVT. LTD. S 21347 219.06
7/10/2009 526652 CALS REF LTD JMP SECURITIES PVT LTD B 76133123 0.76
7/10/2009 526652 CALS REF LTD KII LTD S 40426183 0.77
7/10/2009 526652 CALS REF LTD JMP SECURITIES PVT LTD S 56015358 0.75
7/10/2009 526817 CHEVIO GOLD VIEW FINANCIAL SERVICE LTD B 26529 252.71
7/10/2009 532363 COMP-U-LEARN HITESH SHASHIKANT JHAVERI B 103097 26.35
7/10/2009 532363 COMP-U-LEARN HITESH SHASHIKANT JHAVERI S 94927 25.86
7/10/2009 526027 CUBEX TUBING HEMANT ASHAR S 75000 17.07
7/10/2009 517477 ELNET TECHNO SURABHI CHAUDHARY B 20364 55.38
7/10/2009 500132 EMPEE SUG CH AMBIKA SHYAM SHUKLA B 350000 16.05
7/10/2009 500132 EMPEE SUG CH EMPEE HOLDINGS LTD S 400000 16.05
7/10/2009 533090 EXCEL INFO PARESH SANATKUMAR RACHH B 192052 73.70
7/10/2009 533090 EXCEL INFO PARESH SANATKUMAR RACHH S 197082 74.76
7/10/2009 532666 FCS SOFTWARE SUNEET LAL B 88472 114.37
7/10/2009 532666 FCS SOFTWARE SUNEET LAL S 88472 114.52
7/10/2009 532022 FILAT FASH AUM TECHNOCAST PVT LTD. B 196238 28.41
7/10/2009 532022 FILAT FASH KALPANA SONU PADYAL B 94441 28.55
7/10/2009 532022 FILAT FASH HAR PRAKASH GAGGAR B 45000 27.74
7/10/2009 532022 FILAT FASH BHARTI BAHUVA B 50000 28.30
7/10/2009 532022 FILAT FASH AADESH COMMODITIES PRIVATE LTD B 50000 28.30
7/10/2009 532022 FILAT FASH CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 54863 28.03
7/10/2009 532022 FILAT FASH AUM TECHNOCAST PVT LTD. S 158080 28.03
7/10/2009 532022 FILAT FASH OM PARKASH GUPTA S 35843 28.08
7/10/2009 532022 FILAT FASH VIPUL BHATT S 94000 28.55
7/10/2009 532022 FILAT FASH HAR PRAKASH GAGGAR S 45000 28.49
7/10/2009 532022 FILAT FASH CHIMANLAL MANEKLAL SECURITIES PVT.LTD S 87363 27.95
7/10/2009 513579 FOUNDRY FUEL KUM CONSTRUCTION AND FINANCE P LTD B 32827 7.95
7/10/2009 513579 FOUNDRY FUEL HASMUKH PAREKH S 32165 7.95
7/10/2009 532857 GLORY POLY BHARAT SECURITIES PVT LTD B 87734 27.66
7/10/2009 532857 GLORY POLY JMP SECURITIES PVT LTD B 132967 28.09
7/10/2009 532857 GLORY POLY BHARAT SECURITIES PVT LTD S 87734 27.34
7/10/2009 508918 GREYCELLS EN I G E INDIA LTD B 44890 69.80
7/10/2009 508918 GREYCELLS EN ALKA MAHENDRA JAIN S 31388 69.80
7/10/2009 524080 HAR.LEATHER CAMPHAR SEC.& ADV.P.LTD. B 62000 11.14
7/10/2009 524080 HAR.LEATHER INDUSTRIAL FINANCE CORPORATION OF INDIA S 81837 11.20
7/10/2009 530315 HIND TIN WOR M/S YASH MANAGEMENT AND SATELLITE LTD B 193100 94.40
7/10/2009 530315 HIND TIN WOR BALKRISHNA PREMNATH GUPTA S 100000 94.40
7/10/2009 523467 JAI MATA GLA JAGWANT KISHORE B 30000 4.14
7/10/2009 523467 JAI MATA GLA NARESH GUPTA B 25000 4.14
7/10/2009 523467 JAI MATA GLA AMIT MITTAL B 30000 4.14
7/10/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 181381 4.14
7/10/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD S 23500 4.14
7/10/2009 532617 JET AIRWAYS OPG SECURITIES P LTD B 445657 437.44
7/10/2009 532617 JET AIRWAYS OPG SECURITIES P LTD S 445657 437.74
7/10/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 120426 6.88
7/10/2009 530255 KAY POW PAP SATISH KUMAR GUPTA B 180297 7.28
7/10/2009 530255 KAY POW PAP SUNIL KUMAR GUPTA B 221000 7.11
7/10/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 120426 7.12
7/10/2009 530255 KAY POW PAP OM PARKASH GUPTA S 55002 7.06
7/10/2009 530255 KAY POW PAP SATISH KUMAR GUPTA S 180297 6.81
7/10/2009 530255 KAY POW PAP SUNIL KUMAR GUPTA S 150000 7.29
7/10/2009 532368 LGS GLOBAL BHARAT SHANTILAL THAKKAR B 177727 76.76
7/10/2009 532368 LGS GLOBAL BHARAT SHANTILAL THAKKAR S 177727 76.90
7/10/2009 511768 MASTER TRUST G.S. AUTO LEASING LTD. B 300000 50.50
7/10/2009 511768 MASTER TRUST GALA FINANCE & INVESTMENT B 50000 50.50
7/10/2009 511768 MASTER TRUST FIDELITY IMPEX LIMITED B 50000 50.50
7/10/2009 511768 MASTER TRUST AMULYA LEASING AND FINANCE LTD S 474000 51.50
7/10/2009 533015 NUTEK INDIA PRAKASHBHAI NARSINHBHAI PATEL B 104634 102.85
7/10/2009 533015 NUTEK INDIA STRUZZO CAPITAL SERVICES PVT L B 100000 103.25
7/10/2009 512449 PACE TEXTILES MITTAL SECURITIES AND FINANCE LTD B 300000 104.41
7/10/2009 512449 PACE TEXTILES S UTTAMCHAND HUF S 203000 104.60
7/10/2009 512449 PACE TEXTILES SUTTAM CHAND S 168500 104.13
7/10/2009 509839 PUNJAB WOOLC SUSHMA RANI PUNNI S 194704 6.11
7/10/2009 524037 RAMA PHOS LT SETU SECURITIES PVT LTD B 29413 24.65
7/10/2009 524037 RAMA PHOS LT SETU SECURITIES PVT LTD S 29413 24.62
7/10/2009 590077 RANKLIN SOLU NIBU KRISHNAN B 47620 38.11
7/10/2009 506172 SAMPADA CHEM BHANGOO SUKHWINDER KAUR NIRMAL B 54500 28.21
7/10/2009 506172 SAMPADA CHEM BHANGOO BARINDER KAUR NIRMAL B 55000 28.24
7/10/2009 506172 SAMPADA CHEM SHREE SATYANARAIN PROPERTIES PRIVATE LTD S 152450 28.20
7/10/2009 531898 SANGUINE MD KISHORE Y B 100000 3.25
7/10/2009 531898 SANGUINE MD ANISHKUMAR BACHUBHAI SHAH S 80500 3.25
7/10/2009 532900 SE INVESTM STANDARD CHARTERED BANK(MAURITIUS) LTD. A/C EMERGING IND B 241000 224.00
7/10/2009 532900 SE INVESTM RAJ AGRAWAL S 241000 224.00
7/10/2009 524264 UNIMER INDIA ALBERT TRADING COMPANY PRIVATE LTD. B 400000 17.87
7/10/2009 524264 UNIMER INDIA JAYPEE CAPITAL SERVICES LIMITED S 284900 17.87
7/10/2009 532917 VARUN INDS HITESH SHASHIKANT JHAVERI B 174869 183.80
7/10/2009 532917 VARUN INDS HITESH SHASHIKANT JHAVERI S 155972 182.46
7/10/2009 531874 VENUS VENT ARVIND BABULALJI GOYAL B 35000 77.86
7/10/2009 531874 VENUS VENT CHANDRA SHEKHAR SUNIL BHATT S 28000 77.95
7/10/2009 504220 W S INDUSTRI PERUVAMBA SUBRAMANIAM SHEKAR B 308248 52.00
7/10/2009 504220 W S INDUSTRI UMESH PURUSHOTTAM CHAMDIA B 150000 52.00
7/10/2009 504220 W S INDUSTRI LIFE INSURANCE CORPORATION OF INDIA LTD S 558248 52.00
7/10/2009 522108 YUKEN INDIA APARAJEETA IT SOFTWARE SOULTIONS PRIVATE LIMITED S 42283 74.53
NSE Bulk Deals to Watch - Oct 7 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
07-OCT-2009,ALKALI,Alkali Metals Limited,V J PATEL INVESTMENT,BUY,15000,282.35,-
07-OCT-2009,BILPOWER,Bilpower Limited,UPSURGE INVESTMENT AND FINANCE LIMITED ,BUY,202,173.01,-
07-OCT-2009,DHANBANK,The Dhanalakshmi Bank Ltd,SATYEN KANORIA,BUY,352449,164.48,-
07-OCT-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,BUY,150294,74.99,-
07-OCT-2009,FCSSOFT,FCS Software Solutions Li,SUNEET LAL,BUY,103751,114.42,-
07-OCT-2009,GLORY,Glory Polyfilms Limited,BHARAT SECURITIES PVT LTD,BUY,127244,27.35,-
07-OCT-2009,GLORY,Glory Polyfilms Limited,PRASHANT JAYANTILAL PATEL,BUY,138181,27.86,-
07-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,15012467,23.75,-
07-OCT-2009,KFA,Kingfisher Airlines Ltd.,GENUINE STOCK BROKERS PVT LTD,BUY,1704049,59.55,-
07-OCT-2009,NIITTECH,NIIT Technologies Limited,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,400000,130.99,-
07-OCT-2009,VOLTAMP,Voltamp Transformers Limi,ROYCE VALUE TRUST INC,BUY,95149,810.00,-
07-OCT-2009,WSI,W S INDUSTRIES (I) LTD,MURALI CONSULTANCY SERVICES PVT LTD,BUY,544369,52.00,-
07-OCT-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1725536,20.56,-
07-OCT-2009,WWIL,Wire and Wireless (India),DSP BLACKROCK MUTUAL FUND,BUY,1600000,20.61,-
07-OCT-2009,3IINFOTECH,3i Infotech Limited,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,2191377,97.34,-
07-OCT-2009,ALKALI,Alkali Metals Limited,V J PATEL INVESTMENT,SELL,135111,254.72,-
07-OCT-2009,BILPOWER,Bilpower Limited,UPSURGE INVESTMENT AND FINANCE LIMITED ,SELL,54021,174.33,-
07-OCT-2009,DHANBANK,The Dhanalakshmi Bank Ltd,SATYEN KANORIA,SELL,328494,164.21,-
07-OCT-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,SELL,264197,74.59,-
07-OCT-2009,FCSSOFT,FCS Software Solutions Li,SUNEET LAL,SELL,103751,114.48,-
07-OCT-2009,GLORY,Glory Polyfilms Limited,BHARAT SECURITIES PVT LTD,SELL,127244,27.41,-
07-OCT-2009,GLORY,Glory Polyfilms Limited,PRASHANT JAYANTILAL PATEL,SELL,138181,27.98,-
07-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,15717733,23.78,-
07-OCT-2009,KFA,Kingfisher Airlines Ltd.,GENUINE STOCK BROKERS PVT LTD,SELL,1704049,59.59,-
07-OCT-2009,ROLTA,Rolta India Ltd.,Copthall Mauritius Investment Ltd,SELL,863900,198.09,-
07-OCT-2009,VOLTAMP,Voltamp Transformers Limi,KUNJAL LALITKUMAR PATEL,SELL,100000,810.75,-
07-OCT-2009,WSI,W S INDUSTRIES (I) LTD,LIFE INSURANCE CORP OF INDIA LTD,SELL,600000,52.00,-
07-OCT-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1743636,20.56,-
Post Session Commentary - Oct 7 2009
Domestic market pared all its initial gains and ended the day on weak note backed by fresh selling in key stocks that emerged during last trading hours. Profit-booking pressure at several blue chip counters also contributed to the downward journey. However, market exhibited good show during the first half of the trading, mirroring firm global markets but was unable to hold the momentum and slipped further. Meanwhile, benchmark indices moved between positive and negative terrain during afternoon trade on continuous bouts of buying and selling. BSE Sensex ended below 16,900 level and NSE Nifty closed below 5,000 level.
The markets opened higher today for the second straight session tracking overseas gains and a weaker U.S. dollar. On Tuesday, the US stock market ended up for a second day as news that Australia has raised lending rates by 25 basis points revitalized hopes for the global recovery. Fall in dollar to its weakest level in almost two weeks against the Euro and against most other major currencies, also added to the sentiments. Further, Indian benchmark indices continued to trade up till mid session. However, stocks were unable to hold the same impetus and turned negative backed by export-led outsourcers that fell as the rupee rose to its highest in more than a year. Continuing subdued movement, market finally closed in negative on stock specific selling. From the sectoral front, IT, Teck, Oil & Gas, Auto and Bank stocks contributed to most of the selling. However, Consumer Durable, Metal and Pharma stocks remained in limelight as witnessed most of buying from these baskets.
Among the Sensex pack 20 stocks ended in red territory and 10 in green territory. The market breadth indicating the overall health of the market remained positive as 1420 stocks closed in green while 1331 stocks closed in red and 92 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 151.88 points or (0.90%) at 16,806.66 and NSE Nifty ended down by 41.65 points or (0.83%) at 4,985.75. BSE Mid Caps and Small Caps closed with gains 87.63 and 33.96 points at 6,295.06 and 7,406.55 respectively. The BSE Sensex touched intraday high of 17,120.56 and intraday low of 16,764.07.
Losers from the BSE Sensex pack are Wipro Ltd (4.28%), HUL (5.55%), Maruti Suzuki (3.86%), TCS Ltd (3.31%), SBI (2.66%), Infosys Tech (2.55%), Grasim Industries (2.43%), RCom (2.31%), ICICI Bank (2.23%), M&M Ltd (1.80%) and Reliance (1.57%).
Gainers from the BSE Sensex pack are Sterlite Industries (5.53%), JP Associates (2.34%), Hindalco (1.56%), Wipro Ltd (1.61%), BHEL (1.54%) and Tata Steel (1.23%).
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 430.06, 107.80 and 22.74 points at 21,241.59, 9,799.60 and 2,634.63 respectively. However, and Seoul Composite lost 0.44 points at 1,598. 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 12.97 points at 3,783.18, in Frankfurt DAX index is trading up 17.72 points at 5,675.36 and in London FTSE 100 is trading higher by 5.10 points at 5,143.08.
The BSE IT index closed lower by (2.74%) or 124.72 points at 4,421.27 as rupee surged against the dollar. Losers are Mphasis Ltd (6.01%), Wipro Ltd (4.28%), Rolta Ind (3.47%), TCS Ltd (3.31%) and Infosys Tech (2.55%).
The BSE Teck index dropped by (1.97%) or 61.28 points at 3,050.51. Losers are Mphasis Ltd (6.01%), Wipro Ltd (4.28%), Rolta Ind (3.47%), TCS Ltd (3.31%) and Infosys Tech (2.55%).
The BSE Oil & Gas index decreased by (1.06%) or 108.47 points at 10,161.20. Losers are Essar Oil Ltd (1.78%), Reliance (1.57%), RNRL (1.47%), Aban Offshore (0.57%) and ONGC Ltd (0.40%).
The BSE Auto index ended lower by (1.03%) or 66.89 points at 6,456.13. Main Losers are Amtek Auto Ltd (4.97%), Maruti Suzuki (3.86%), Excorts Ltd (2.02%), M&M Ltd (1.80%) and Bharat Forge (1.79%).
The BSE Bank index ended down by (0.84%) or 83.03 points at 9,832.47, as SBI (2.66%), ICICI Bank (2.23%), Axis Bank (1.87%), Federal Bank (1.80%) and Allahabad Bank (1.41%) in red.
The BSE Consumer Durable index gained (4.58%) or 158.84 points 3,624.57. Gainers are Titan Ind (7.62%), Gitanjali GE (6.81%), Videocon Ind (4.93%) and Rajesh Export (3.57%).
Grasim Industries lost 2.43%. The company expects its cement business to register a two-fold growth once the proposed merger between Samruddhi Cement and UltraTech is completed. The company believes the restructuring exercise, including the hiving off Grasim cement into Samruddhi, would enable it to increase its financing capabilities for future growth.
Tata Communications ended lower by 3.31%. The company announced that India-based NDTV Convergence Ltd has chosen its LiveBroadcast service, a high-quality, flash-based streaming service, to broadcast three national channels in India two news and one business over the Internet to a global audience.
JSW Steel Ltd gained 1.58% after the company reported 54% rise in crude steel production to 15.39 lakh tonnes units in Q2 September 2009 over Q2 September 2008.
Hindustan Dorr-Oliver Ltd dropped 1.64%, after the company bagged an order worth Rs. 130 crore.
Jindal Saw Ltd gained 2.03% after the company said its board will meet on 15 October 2009 to consider stock split.
Escorts Ltd fell 2.02% despite one of the promoter group companies revoked a portion of shares, which it had pledged earlier.
Larsen & Toubro Ltd lost 0.20% on reports the firm aims to sell its entire 6.9% stake in Mahindra-Satyam soon after the lock in period expires early next week.
RIL Board recommends 1:1 Bonus Issue
Board of Directors of Reliance Industries Ltd at its meeting held on Oct 07, 2009 has recommended issue of Bonus shares in the ratio of one equity share of Rs. 10/- each fully paid up for every one equity share of Rs. 10/- each of the Company, subject to the approval of the shareholders.
The Board has declared a dividend of Rs. 13 (Rupees thirteen only) per fully paid-up equity share of Rs. 10/- each.
Sensex sheds its morning gains
Despite strong performance by Asian indices and overnight US indices doubled with positive opening of European markets, the Indian market didn't manage to sustain its morning gains and closed below the psychological level of 17000. Nikkei 225 gained 107.80 points or 1.11%, while Hang Seng rose by massive 430.06 points or 2.07%. Even European stocks rose in early trades, while currently FTSE was trading marginally up by 3.75 points or 0.07%. While traders in the US market will be looking forward to the data on crude inventories, consumer credit and treasury budget that will be out today and might decide the trading course for major US indices.
Benchmark BSE- 30 (Sensex) opened 162.02 points higher at 17120.56 over the yesterday’s closing, however, for the major part of the day it remained highly volatile and largely traded in the range of 16900-16950. While heavy selling in the IT and TECk heavyweights on the back of rupee strengthening against the US dollar pulled the Sensex down to hit the low of 16764.07 during the course of the day. The index witnessed a steep fall towards the closing hours and ended the session 151.88 points lower at 16806.66, while Nifty fell 41.65 points to close at 4985.75. The market breadth was flat as out of the 2,823 stocks traded on the BSE, 1,417 stocks advanced, whereas 1,337 stocks declined. Eighty-nine stocks ended unchanged.
Among sectoral indices, BSE CD rose 4.58%, BSE Metal surged 2.28%, while BSE HC gained 1.31%. While BSE IT plunged the most by 2.74%, followed by BSE TECk that lost 1.97% recording a fall for second consecutive trading session. The weakening of the US dollar raised concerns for primarily export-driven Indian IT sector, which resulted in a massive sell-off in IT stocks. Thus stocks like Mphasis led the top losers’ list slumping the most by 6.01% to Rs627.10 followed by Wipro that dropped 4.28% to Rs573.10, while Maruti Suzuki shed 3.86% to quote at Rs1,536.55, Rolta India lost 3.47% to trade at Rs194.75, Tata Consultancy Services slipped 3.31% to Rs592.95, While State Bank of India, Infosys Technologies, HCL Technologies, Grasim Industries, Reliance Communications, Sun TV, ICICI bank, Godrej Consumer, Ranbaxy Laboratories, Andhra Bank and Suzlon Energy were down by more than 2% each. Among gainers, Piramal Healthcare rose 10.06% to Rs413.05, Yes Bank surged 8.44% to Rs208.15, Titan gained 7.62% to Rs1,363.05 while Canara Bank, Sintex Industries, Godrej Industries rose 6% and stocks like Gujarat NRE Coke, Sterlite Industries, Lanco Infratech, Lupin and MMTC ended with strong gains of over 5%.
On turnover front, over 1.97 crore Ispat Industries shares changed hands on the BSE followed by Unitech (1.06 crore shares), Suzlon Energy (0.71 crore shares), IFCI (0.63 crore shares), Bharti Airtel (0.57 crore shares) and Idea Cellular (0.54 crore shares).
Firm rupee hits IT stocks; RIL announces bonus bounty
A surprise bonus issue announced by India's biggest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) after trading hours may boost the bourses at the onset of the trading session on Thursday, 8 October 2009, after a disappointing session today, 7 October 2009. Stocks faltered in second half of the day's trading session after an upbeat first half in what was a highly volatile trading session.
The two key benchmark indices - the BSE Sensex and the S&P CNX Nifty failed to hold on to key levels of 17,000 and 5,000 respectively after trading well above those at the onset of the day's trading session. The Sensex lost 151.88 points or 0.90%, off 313.90 points from the day's high and up 42.59 points from the day's low.
Despite correction in broad market, the market breadth was positive, although it was not as strong as it was in the opening session. Index heavyweight RIL which surprised the street with a liberal 1:1 bonus announcement after market hours, ended 1.5% lower ahead of the announcement. Shares from auto and FMCG entered correction zone. IT shares also faltered as rupee surged against the dollar. Telecom pivotals extended recent steep losses. However, metal shares surged on rally in metal prices on the London Metal Exchange with Sterlite Industries striking a 52-week high.
From the banking pack, HDFC Bank, held on to gains after striking a 52-week high. However, ICICI Bank reversed course after hitting a 52-week high earlier in the day. Shares from sugar and aviation sector gained on momentum buying.
Intraday volatility was immense. After an initial surge triggered by firm Asian stocks, the market came off the higher level soon as IT stocks dropped on a rally in rupee against the dollar. The market surged in mid-morning trade. Two bank pivotals State Bank of India and ICICI Bank led a sudden sell-off on the bourses that pulled the Sensex in the red in early afternoon trade. The market soon regained positive zone.
The market lost ground shortly with the Sensex hitting a fresh intraday low. Volatility ruled the roost later. A late sell-off pulled the Nifty below the psychological 5,000 mark.
Stock and sector-specific activity may dominate trade in the coming days based on expectations on Q2 September 2009 results. IT bellwether Infosys kickstarts the reporting season on Friday, 9 October 2009. Auto firms are seen reporting strong Q2 results on strong volume growth and on lower input costs. Cement firms too are seen reporting good Q2 numbers on the back of volume growth, higher realisation and decline in costs like imported coal. Metal firms are seen reporting fall in net profit due to a sharp fall in metal prices on year-on-year basis
Fall in volumes in the commercial property segment and lower realisations in both commercial and residential property segments, will pull earnings of realty firms lower. A sharp surge in equity markets may help treasury gains for some banks. As far as IT stocks is concerned the focus in mainly on the guidance from Infosys.
Strong growth in new subscriber additions will aid topline growth of telecom firms. But falling average revenue per user (ARPU) and revenue per minute due to intense competition will cap bottom line growth.
European shares dipped in red in volatile trade. Key benchmark indices in UK, Germany and France were down by between 0.18% and 0.39%
Gross domestic product in the 16-nation euro zone shrank by a larger-than-expected 0.2% in the second quarter, the statistics agency Eurostat said Wednesday, 7 October 2009 in its second estimate. Economists had expected Eurostat to leave its estimate unchanged at a decline of 0.1%. Second-quarter GDP fell 4.8% year on year, compared to an earlier estimate of a 4.7% decline
Most Asian markets were trading higher today, 7 October 2009 as commodity shares gained on rising commodity prices. Key benchmark indices in Japan, Taiwan, Hong Kong and Singapore were up by between 0.87% and 2.07%. However South Korea's Seoul Composite was down marginally by 0.03%. Indian indices underperformed their Asian counterparts today.
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 22 points at the opening bell today, 7 October 2009.
US stocks jumped on Tuesday, 6 October 2009, gaining for a second straight session as a weaker dollar boosted commodities and currency-sensitive stocks. The Dow Jones Industrial Average rose 132 points, or 1.4%, to 9,731.25. The S&P 500 index gained 14 points, or 1.4%, to 1,054.72 and the Nasdaq Composite index rose 35 points, or 1.7%, to 2,103.57.
Global markets have advanced after Australia became the first major economy to boost interest rates since the financial crisis began. Australia's central bank hiked its overnight lending rate by a quarter percentage point to 3.25% on Tuesday, 6 October 2009, saying it was time to start taking away the stimulus of low rates as the economy is no longer weakening.
Kansas City Fed President Thomas Hoenig said on Tuesday that while the US economy is clearly rebounding, it is too soon to begin to withdraw the Federal Reserve's massive support.
Meanwhile, billionaire investors George Soros' Soros Fund Management has reportedly bought big stakes in a few US stocks in the past few weeks. Incidentally, Soros said this week that the US recovery is a long way off.
After a huge redemption last year, a number of hedge funds have begun to see net inflows again, reports suggest.
Back home, the International Monetary Fund (IMF) may raise India's 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.
The government's direct tax collections grew just 3.69% in the first half of the fiscal to Rs 1.52 lakh crore because of higher refunds. The lower outgo towards refunds in the later part and revival in the economy would help the government achieve its full-year target of 7.24% growth in direct tax mop-up.
The Reserve Bank of India (RBI) Governor D Subbarao said on 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.
HDFC chairman Deepak Parekh today said he expects the central bank to raise interest rates in the March 2010 quarter on inflationary concerns. It would be a marginal, token hike, he said. Planning Commission deputy chairman Montek Singh Ahluwalia said on 5 October 2009 that 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. Ahluwalia today, 7 October 2009, said the economy may growth over 7% in 2010/11.
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.
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 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.
The BSE 30-share Sensex fell 151.88 points or 0.90% to 16,806.66. The Sensex opened 110.88 points higher at 17,069.42. The Sensex rose 162.02 points at the day's high of 17,120.56 in early trade. The barometer index lost 194.47 points at the day's low of 16,764.07 in late trade.
The S&P CNX Nifty was down 41.65 points or 0.83% to 4985.75. Nifty October 2009 futures were at 4,974.85, at a discount of 10.90 points as compared to the spot closing.
The Sensex is up 7159.35 points or 74.21% in calendar year 2009 as on 7 October 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8646.26 points or 105.95% as on 7 October 2009. FII inflow in the calendar year 2009 totaled Rs 61260.20 crore (till 5 October 2009).
Coming back to today's trade, turnover on BSE rose to Rs 6,602 crore from Rs 6,388.20 crore on Tuesday, 6 October 2009. Turnover in NSE's futures & options (F&O) segment was Rs 81,030.16 crore, lower than Rs 88,732.60 crore on Tuesday, 6 October 2009.
The market breadth, indicating the overall health of the market was positive. On BSE, 1445 shares advanced as compared with 1365 that declined. A total of 90 shares remained unchanged. The breadth was strong earlier in the day
The BSE Mid-Cap index rose 1.41% to 6,295.06 whereas the BSE Small-Cap index gained 0.46% to 7,406.45. Both the indices outperformed the Sensex.
Sectoral indices on BSE displayed mixed trend. The BSE FMCG index (down 0.52%), the BSE Capital Goods index (up 0.46%), the BSE Healthcare index (up 1.31%), the BSE PSU index (up 0.75%), the BSE Consumer Durables index (up 4.58%), the BSE Metal index (up 2.28%), the BSE Bankex (down 0.84%), the BSE Realty index (up 0.51%), the BSE Power index (up 0.58%), outperformed the Sensex.
The BSE IT index (down 2.74%), the BSE Auto index (down 1.03%), the BSE Oil & Gas index (down 1.06%), the BSE Teck index (down 1.97%), underperformed the Sensex.
Among the 30-member Sensex pack, 20 declined while the rest rose.
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 third largest software services exporter Wipro lost 4.31% to Rs 572.90 and was the top loser from the Sensex pack
India's largest software services exporter TCS lost 3.38%. 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 Technolgoes fell 2.56%. 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%.
A total of eight brokerages expect a between 8.9% fall to a 6.7% rise in Infosys' net profit at between Rs 1390.80 crore to Rs 1629.10 crore in Q2 September 2009 over Q1 June 2009. Revenue is seen rising 1.2% to 2.9% at between 5540.30 crore to Rs 5628.90 crore in Q2 September 2009 over Q1 June 2009.
The rupee pared early gains on Wednesday on fall in equities but a weaker dollar overseas continued to support sentiment. The partially convertible rupee was at 46.58/60 per dollar, off a high of 46.49, its strongest since 26 September 2008 and above its previous close of 46.89/90.
Battered telecom shares got no respite and were subdued for the third straight day. Telecom stocks had tumbled in the past two days on Monday, 5 October 2009 and Tuesday, 6 October 2009, on concerns over declining tariffs and rising competition.
India's largest cellular services provider by sales Bharti Airtel was down 0.45%, extending two-day 17.45% slide. Chief Executive Manoj Kohli said on Wednesday that the company is considering a bid for Millicom's assets in Sri Lanka. Sweden's Millicom has put its mobile operations in Sri Lanka up for sale.
Bharti'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.
Kohli on Tuesday, 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
India's second largest cellular services provider by sales Reliance Communications (RCom) fell 2.74% after slumping 15.64% in the past two days.
RCom on Monday, 5 October 2009 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. A reduction in tariffs by Reliance Communications (RCom) also raised concerns of a fresh tariff war.
Among other cellular services provider, Tata Teleservices (Maharashtra) (down 0.15%), Mahanagar Telephone Nigam (down 0.12%) and Idea Cellular (down 1.08%) declined.
Telecom shares had slumped on Monday, 5 October 2009 on reports the auction of 3G telecom services by the government could be delayed. 3G, or third generation airwaves are vital for high-end services such as videoconferencing and ultra-fast internet on mobiles.
Telecom minister A Raja after market hours 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.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) lost 1.72% to Rs 2095.80 after swinging in a band of Rs 2083.10 and 2155 during the day. Reliance Natural Resources (RNRL) fell 1.7%.
On 6 October 2009, Anil Ambani's RNRL filed an affidavit accusing RIL of dishing out undue favours to Director General of Hydrocarbons, who is responsible for enforcing the production sharing contract between the Centre and RIL.
Mukesh Ambani's RIL was quick to respond by filing as many as eight affidavits alleging that if natural gas was supplied to RNRL at the demanded $2.34 per unit million British thermal units (mBtu), then the latter would indulge in profiteering by selling the same at market price, which would cause a huge loss to the exchequer and a windfall for RNRL.
RIL through its directors who filed separate affidavits also said that if RNRL's demands were granted, the government would lose large sums of money in profit sharing, royalties and taxes. RNRL would reap a windfall at the expense of the government and RIL and its shareholders, RIL added.
The latest development comes ahead of the Supreme Court's hearing scheduled to begin on 20 October 2009 on the long standing legal tussle between the Ambani brothers over supply and pricing of natural gas from KG basin. RNRL is demanding 28 million metric standard cubic meter per day (mmscmd) of gas from RIL for 17 years at a price of $2.34 per mBtu, which is 44% lower than the government-approved rate of $4.20 per mBtu.
Shiv Vani Oil & Gas Exploration Services jumped 4.11% after consolidated net profit rose 18.52% to Rs 56.39 crore in Q2 September 2009 over Q2 September 2008.
Metal stocks advanced after LMEX, a gauge of six metals traded on the London Metal Exchange jumped 2.89% on Tuesday, 6 October 2009.
India's largest non ferrous metal producer by sales Sterlite Industries India surged 5.74% to Rs 817.50 echoing a 4.88% rally in its American depository receipt (ADR) on Tuesday, 6 October 2009. The stock also struck a 52-week high of Rs 824.55 in intra-day trade. It was the top gainer from the Sensex pack.
India's largest private sector steel maker by sales Tata Steel gained 1.45%. The company's domestic steel sales rose 19% in July-September 2009 quarter to 1.46 million tonnes from a year earlier. Domestic operations account for about a quarter of the group's total annual global capacity of 30 million tonnes, which includes unit Corus, Europe's second-largest steelmaker.
JSW Steel rose 1.88% after the company reported 54% rise in crude steel production to 15.39 lakh tonnes units in Q2 September 2009 over Q2 September 2008. The company made this announcement after market hours on Tuesday, 6 October 2009.
Jindal Saw rose 1.60% after the company said its board will meet on 15 October 2009 to consider a stock split proposal. The company announced the board meet during trading hours today, 7 October 2009.
Steel Authority of India soared 3.72% on reports the government has decided to split the Chiria iron ore mine in Jharkhand and give half the reserves to the company.
Steel Strips Wheels jumped 4.83% after the company received an order from Renault for supply of 19,008 steel wheel rims. The company announced the new order win during trading hours today, 7 October 2009.
Hindustan Zinc (up 1.89%), Sesa Goa (up 4.08%), and Hindalco Industries (up 1.36%), were the other gainers from the metal pack.
India's largest power equipment maker by sales Bharat Heavy Electricals (Bhel) spurted 1.17%, extending Tuesday's 3.33% advance. The company had bagged a power plant equipment export contract valued at Rs 270 crore from Grodnoenergo, a state-owned enterprise in Belarus on 1 October 2009. Bhel will unveil its Q2 September 2009 results on 23 October 2009.
India's largest power generation fir by sales National Thermal Power Corporation (NTPC) rose 0.14%. As per reports the company would commission four power projects that can generate over 1,500 megawatt of electricity by 2017 in Uttarakhand.
India's largest engineering & construction company by sales Larsen & Toubro was unchanged at Rs 1680. As per reports, the firm aims to sell its entire 6.9% stake in Mahindra-Satyam soon after the lock in period expires early next week.
Other shares from capital goods sector also gained on fresh buying. Gammon India (up 2.06%), Crompton Greaves (up 5.21%), Punj Lloyd (up 1.85%), SKF India (up 2.24%), and Thermax (up 0.76%), rose.
Most auto stocks declined profit booking after recent strong gains. Most auto firms have reported decent to strong growth in sales for the month just gone by. India's top small car maker by sales Maruti Suzuki India lost 3.71%. 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 tractor maker by sales Mahindra & Mahindra slipped 1.45%. 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 largest truck maker by sales Tata Motors slipped 0.78% following a 1.99% rise in its American depository receipt (ADR) on 6 October 2009. The company's total sales rose 5.77% to 52,513 units in September 2009 over September 2008.
India's second largest bike maker by sales Bajaj Auto's rose 2.26%. The company's total sales rose 14% to 249,795 units in September 2009 over September 2008. India's largest bike maker by sales Hero Honda Motors gained 0.37%. The firm's total sales rose 4.16% to 4,01,290 units in September 2009 over September 2008.
India's second largest private sector bank by net profit HDFC Bank rose 0.39% to Rs 1665.10 buoyed by a 4.3% spurt in its ADR on Tuesday, 6 October 2009. The stock hit a 52-week high of Rs 1707 in intra-day trade.
India's largest private sector bank by net profit ICICI Bank fell 2.48% to Rs 915. The stock retraced from a 52-week high of Rs 983.70 hit earlier in the day. The Foreign Investment Promotion Board (FIPB) has reportedly asked ICICI Bank to obtain clearance from the market regulator Securities & Exchange board of India (Sebi) and banking regulator the Reserve Bank of India (RBI) for its Rs 500-crore fund that is proposed to set up in Mauritius for making equity and equity-related investments in the Indian market.
India's largest bank by net profit and branch network State Bank of India fell 2.74% to Rs 2099.70, off day's high of Rs 2188. As per recent reports, the state-run bank is 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 mortgage lender by total income Housing Development Finance Corporation (HDFC) was down 0.10%. Chairman Deepak Parekh sees loan disbursements picking up in the December 2009 quarter.
A number of state-run banks edged higher on hopes a recovery in the economy may boost lending growth which currently remains sluggish. Canara Bank (up 7.30%), Punjab National Bank (up 1.89%), Oriental Bank of Commerce (up 3.72%), Indian Overseas Bank (up 2.62%), Union Bank of India (up 0.86%), Bank of India (up 1.23%), Bank of Baroda (up 0.69%), gained.
Shares of diversified firm Grasim fell 1.85%. 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 gained 1.07%. The cement maker at its board meet held on 6 October 2009 gave in principle approval to a proposal to absorb group firm Samruddhi Cement.
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 Cements rose 1.83% after the company said the Bank of New York Mellon Corporation, a global financial services firm has hiked its stake to 10.01% from 9.80% in the company after acquiring 6.01 lakh shares representing 0.21% stake through open market purchases on 30 September 2009. The company made this announcement during trading hours today, 7 October 2009.
India's largest phara firm by market capitalisation Sun Pharmaceutical Industries advanced 0.18% on reports the company has received final approval from the US Food and Drug Administration (USFDA) to market caffeine citrate solution in the strength of 30 mg/3 ml. Caffeine citrate is indicated for short term treatment of apnea in premature infants between 28 and less than 33 weeks gestational age.
Dr Reddy's Laboratories rose 1.11% after the company launched two products used for treating skin related problems. The company announced the launch of drugs after market hours on Tuesday, 6 October 2009.
Piramal Healthcare jumped 10.06%. Reports on 6 October 2009, suggested that the company has urged the government to increase retail prices of Vitamin C tablets, which are consumed mainly by Asthmatic patients, children and pregnant women, and its deficiency leads to scurvy, a skin disease.
Sugar shares gained on firm commodity prices globally. Bajaj Hindustan (up 4%), Balrampur Chini Mills (up 3.93%), and Shree Renuka Sugars (up 2.76%), gained.
Aviation stocks gained on momentum buying mirroring rally in global airline stocks which gained on improving monthly traffic trends. SpiceJet (up 9.55%), Jet Airways (up 3.91%), and Kingfisher Airlines (up 0.52%), rose.
Sanjay Agarwal, chief operating officer (CEO) of Spicejet was quoted by the media as saying that earnings of airline companies should improve in the ongoing quarter due to rise in passenger traffic on the back of holiday season.
Bharti Airtel was the top traded counter on BSE with turnover of Rs 205.51 crore followed by Reliance Capital (Rs 166.70 crore), HDIL (Rs 152.11 crore), State Bank of India (Rs 149.17 crore), and Jet Airways (Rs 148.56 crore).
Cals Refineries clocked highest volume of 15.04 crore shares on BSE. Ispat Industries (1.97 crore shares), SpiceJet (1.78 crore shares), Kingfisher Airlines (1.17 crore shares) and Unitech (1.06 crore shares) were other volume toppers in that order.
Select textile stocks gained after the textiles minister said on Wednesday India's apparel exports have grown 2-3% in April-September 2009 period compared to the same period last year.
Gitanjali Gems jumped 6.77% after the company bought Alliance Jewellers, which makes gold and diamond studded jewellery. No other details were provided. The announcement was made after trading hours on Tuesday, 6 October 2009.
Godrej Industries spurted 7.11% after the company said it will set up a special purpose vehicle to jointly develop property in Mumbai with Godrej Properties and Godrej & Boyce Mfg Co. The announcement was made during trading hours today, 7 October 2009.
RIL board approves 1:1 bonus issue
Mukesh Ambani group firm Reliance Industries today said it will issue one bonus share for every share held in the company
The board of directors of the company at its meeting held today, recommended issuance of bonus shares in the ratio of one equity share of Rs 10 each for each share held, RIL said in a filing to the Bombay Stock Exchange.
The issue of bonus shares is subject to the shareholders' approval, it added.
The board has also declared a dividend of Rs 13 per fully paid-up equity share of Rs 10 of the company to the shareholders, the company said.
Shares of RIL today closed down 1.57 per cent at Rs 2,099 on the Bombay Stock Exchange.
via Economic Times
Bias may remain positive
The strong overnight gains in the US markets and positive opening in all the major Asian Indices may help Sensex open higher. While the Q2 results will set the trend of the market in the coming period. However, strong optimism amongst investors could help the sentiment remain positive. Among the local indices, the Nifty could test the 5100-5150 range on the upside while on the down side it could find support at 4700 and 4660. The Sensex is likely to get support at 16250 and may face resistance at 17200.
US indices on Tuesday recorded gains for the second straight session, following the weaker dollar that boosted the commodity and dollar sensitive stocks. The major US indices posted a strong performance. While the Dow Jones rose by 132 points to close at 9731.25, the Nasdaq also ended 35.42 point up at 2103.57.
Among the Indian ADRs trading on the US bourses, HDFC Bank led the upward move and gained 4% while Infosys, Wipro, Dr Reddy, Tata Motors, ICICI Bank, Patni Computers, Rediff and VSNL gained over 1-2% each, MTNL however closed in negative territory with loss of 2%.
Crude oil prices advanced, with the Nymex light crude oil for November series gained by 47 cents to close at $70.88 a barrel. In the commodity space, the Comex gold for December series advanced $21.90 to settle at $1039.70 a troy ounce.
Daily trend of FII/MF investment in equities
On October 05 2009, FIIs were net sellers of stocks to the tune of Rs237.5 crore (purchases worth Rs3709.6 crore and sales of Rs3947.10) while domestic mutual funds were net sellers of stocks to the tune of Rs 776 crore (purchases worth Rs990 crore and sales of Rs1766 crore.
Pre Session Commentary - Oct 7 2009
Today domestic markets are likely to open positive on the back of second day overnight rally in the US markets that has backed the sentiments across Asian markets, which have also opened in green. There could be some broad based buying sentiment that would help majority of sectors trade with firmness. The weakness in Dollar has supported a lot of buying across stocks and commodities in US and the same has proved beneficial for other markets as well. Domestic markets are likely to trade positive today.
On Tuesday, 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 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.
On Tuesday, the US stock market ended up for a second day as news that Australia has raised lending rates by 25 basis points revitalized hopes for the global recovery. Fall in dollar to its weakest level in almost two weeks against the Euro and against most other major currencies, also added to the sentiments. Besides, dollar decline also bolstered commodity prices. Stocks were able to report rise along with overseas gains, regardless of a downward drift in afternoon action. Materials stocks closed with a gain of 1.9% and financials finished 1.2% higher. All 30 Dow stocks ended higher, led by Alcoa, Intel and JP Morgan. US light crude oil futures for November delivery managed to report modest gains and closed up at $70.88 per barrel, on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) gained by 131.50 points at 9,731.25. NASDAQ index surged 35.42 points to 2,103.57 and the S&P 500 (SPX) closed higher by 14.26 points at 1,054.42.
Indian ADRs ended in green on Tuesday. In the banking space, HDFC Bank was up 4.3% and ICICI Bank was up 1.74%. In the IT space, Infosys was up 0.61%, Wipro was up 0.22%, Patni Computers was up 2.2% while Satyam Computers was flat. In the telecom space, Tata Communication was up 2.76% while MTNL was down 1.96%. In other sectors, Sterlite Industries was up 4.88%, Dr Reddy’s Labs was up 2.73% and Tata Motors was up 1.99%.
The FIIs on Tuesday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 3,709.60 Crore and gross debt purchased stood at Rs 371.90 Crore, while the gross equity sold stood at Rs 3,947.10 Crore and gross debt sold stood at Rs 272.90 Crore. Therefore, the net investment of equity and debt reported were Rs (237.50) Crore and Rs 99.10 Crore respectively.
On Tuesday, the partially convertible rupee ended at 46.89/90 per dollar, 1.3% stronger than Monday’s closing at 47.52/53. Reserve Bank of Australian`s (RBA`s) rate rise announcement also supported the rupee as it has raised the hopes that India could follow and pushed the dollar lower.
On BSE, total number of shares traded were 45.33 Crore and total turnover stood at Rs 6,388.20 Crore. On NSE, total number of shares traded were 99.00 Crore and total turnover was Rs 21,128.25 Crore.
Top traded volumes on NSE Nifty – Bharti Airtel with total volume traded 69639854 shares, followed by Unitech with 67363392, Idea Cellular with 36924209, Suzlon Energy with 34127546 and Reliance Comm with 31392514 shares.
On NSE Future and Options, total number of contracts traded in index futures was 928302 with a total turnover of Rs 22,145.79 Crore. Along with this total number of contracts traded in stock futures were 688236 with a total turnover of Rs 21,809.66 crore. Total numbers of contracts for index options were 1679682 with a total turnover of Rs 42,333.21 Crore and total numbers of contracts for stock options were 80680 and notional turnover was Rs 2,443.95 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.
Grey Market Premium - Pipavav Shipyard, 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 50 (Approximate) | 4 to 5 |
Pre Market - Oct 7 2009
Indian equities pared intraday losses and ended on a positive note Tuesday. Losses in telecom, realty and IT stocks were offset by gains in FMCG, metals and banks. Market began trade on a positive note but the upmove was short-lived as the indices began to lose ground on sell-off in blue-chip telecom companies. Later, sentiments turned bullish as the European markets opened higher. However the broader market continued to remain weak. Today we expect the markets to open higher on firm global cues.
Wall Street rallied further on Tuesday, gaining for a second straight session as a weaker dollar boosted commodities and dollar-sensitive stocks, fostering a broad-based advance. Both Dow Jones Industrial Average & Nasdaq were up 1.4% & 1.7% respectively.
Asian markets are also trading higher at this point in time with Hang Seng & Nikkei up 1.5% & 0.9% respectively. Indian ADRs too were up across the board with the exception of MTNL which was down 2%. Financials continued their upward journey with both HDFC Bank & ICICI Bank registering gains of 4.3% & 1.7% respectively. Tech ADR’s remained in positive terrain with Wipro & Infosys up marginally while Satyam closed unchanged. Sterlite was up 4.9%, the biggest gainer amongst the ADR’s.
Daily News Roundup - Oct 7 2009
Reliance Industries told the Supreme Court that the family MoU signed by Mukesh Ambani to supply natural gas to Anil Ambani was in his personal capacity and the company’s board had not approved it. (ET)
Central Vigilance Commissioner has ordered a discreet inquiry by CBI into the allegations of a nexus between Reliance Industries and DGH. (FE)
Reliance Industries threatened to stop oil and gas exploration if it is not granted the promised drilling moratorium to cover for the acute shortage of rigs. (FE)
TCS Chairman and CEO said that the next phase of investments and growth for the company will be Japan, Europe and in areas such as platform BPO, where it will pursue acquisitions. (ET)
L&T’s building and factory construction division received a contract worth Rs15bn. (FE)
Supreme Court issued a notice to L&T as NHAI appealed against an order passed by Orissa High Court permitting it to encash only 50% of the unconditional and irrevocable bank guarantees furnished by L&T. (FE)
L&T may exit Mahindra Satyam by starting the process of selling its 6.9% stake soon after a lock-in period expires early next week. (BS)
JSW Steel’s production rose 54% to 1.5mn tons in Q2 FY10 on robust demand. (FE)
GAIL will start importing LNG from October end or November to meet growing local demand. (FE)
Government to split the Chiria iron ore mines in Jharkhand into two and give at least half the reserves to SAIL for its expansion plans. (BS)
Coal India hopes to complete the bidding process for contractual development and operation of seven high capacity underground mines by January. (BL)
Suzlon Energy won a repeat order of about Rs3bn for 57MW from Ayen Enerji of Turkey. (BS)
ACC raised Rs3bn via non convertible debentures to fund its expansion. (FE)
Under the recently announced restructuring plan, Ultratech will have greater flexibility to borrow from the market to fund its large scale future expansions. (ET)
Ultratech and Samruddhi merger expected to take about 7-9 months. (FE)
Zain Telecom has quickened with the Indian consortium led by Delhi-based Vavasi group to give a majority stake in the consortium to state-owned BSNL or MTNL. (BS)
IDFC and India Infrastructure Fund have picked up 20% stake in GMR Kamalanga Energy, a SPV of GMR Energy. (ET)
Idea Cellular has entered into a one year sponsorship deal with GMR Industries as the principal partner of Delhi Daredevils, starting with the forthcoming Champions League Twenty20. (FE)
The High Court of Gujarat has approved the scheme of demerger of Arvind Ltd into Arvind Lifestyle Brands (brands business) and Arvind Retail Ltd (retail business division). (FE)
Tata BlueScope Building Solutions, a division of Tata BlueScope Steel, tied up with Arshiya International to provide the Butler building systems for the upcoming warehousing projects of the latter in India. (FE)
Dr. Reddy’s launched two variants of Strea, a dermatological product, in India. (ET)
Japan’s Daiichi Sankyo will sell its products in Mexico through Ranbaxy as part of its plans to exploit its marketing strength. (ET)
Ranbaxy has objected to the appointment of two new directors to the board of Zenotech. (ET)
Lupin may earn upto US$53mn in clinical trial, new drug application and regulatory milestone payments for the bioadhesive drug delivery technology it licensed out to US based Salix Pharmaceuticals. (ET)
Raymond will invest Rs1bn to open about 300 stores across the country by the end of March 2011. (ET)
Pyramid Saimira has divested 40% stake in its production arm to RDB Group. (FE)
K S Oils has acquired an additional 53,000 acres for developing palm oil plantations in Indonesia through its wholly-owned Singapore subsidiary. (BS)
Cadila-Novavax JV can produce 250mn doses of H1N1 vaccine. (BS)
Meghmani’s chlor-alkali plant in Gujarat begins production. (BL)
Indiabulls Retail has rebranded its loss-making lifestyle stores, Indiabulls Megastore, as Store One. (BS)
Safexpress plans to invest Rs6bn for setting up logistics parks across the country, with about a third being invested in the southern states. (BS)
Essar Group said its Rs45bn non convertible debentures issue was oversubscribed within a few hours of opening. (ET)
Private equity firm Actis closed its second infrastructure fund of US$750mn to invest in power generation and transport companies in Africa, China, India, Latin America and South East Asia. (Et)
Special Undertaking of Unit Trust of India, the principal shareholder in Asset Reconstruction Company (ARC), has offered its shares in ARC to the existing shareholders. (ET)
Flughafen Zurich AG, operator of Zurich airport in Switzerland, which has a 17% stake in Bangalore International Airport Ltd, will reduce this to 5%, to fund its growth in India.(BS)
AT&T, Telstra and SK Telecom are expected to enter the Indian telecom market. (FE)
Center is likely to support the two tier duty structure suggested by the states for the proposed goods and service tax. (ET)
The CBDT reported 3.7% growth, lower than the growth target for 2009-10, in direct tax collections at Rs1.5trn in the first half of the current fiscal. (ET)
Delhi based think tank, IEG, says that the country’s growth momentum will pick to 7% in August and 9% in October. (ET)
Government has initiated a probe to impose anti dumping duties on imports of phenol, used in making plywood and particle boards. (ET)
The disinvestment policy and road map prepared by the disinvestment department, which has already received approval from the Prime Minister and finance minister, will be discussed by the Cabinet Committee on Economic Affairs. (ET)
Karnataka government estimates damage to crops due to floods in the state at Rs25bn. (FE)
CERC has reserved its order on a review petition filed by MCX challenging the exercise of jurisdiction by CERC over the forward contracts in electricity. (FE)
The department of fertilizers is mulling a proposal to pool the gas prices for fertilizer users in case the Ministry of Petroleum and Natural Gas is unable to come out with a uniform price. (BS)
The Directorate General of Civil Aviation (DGCA) has set up an advisory panel to review and upgrade rules and regulations to the meet the best global practices. (BS)
What's up! Smart start in store
Fear and greed can be your greatest enemy or your greatest asset.
After the Monday Mayhem, we witnessed a classic Tuesday Turnaround. The rebound was largely led by short covering and buying in defensives like FMCG shares. Derivative indicators show that 4900 will remain a key short-term support. So what’s up on Wednesday? We expect to see a firm start as most world markets are up smartly. Commodities have too resumed their northbound journey while the dollar is getting pummeled.
Trading screens have turned green again after the recent retreat that had seen indices pull back from multi-month highs. In the near-term, the Indian market will swing to the beats of the global markets and corporate earnings. Though the overall trend appears positive, volatility will remain elevated.
Australia has already blinked by raising rates. The RBI chief too has been talking of an exit from the accommodative monetary stance. Watch out for the mid-term policy review. Inflation will continue to have a bearing on equities and interest rates are also set to harden.
Quite a few experts have lately cautioned on the sharp run-up in stocks and even commodities, citing an anemic recovery in the advanced economies. Data points released over the past few days have not quite been all that comforting. Consumer spending remains subdued and the crucial housing market too is lackluster at best. At the same time, concerns prevail on the persistent weakness in the jobs market.
The ferocious price war may keep telecom stocks under pressure. IT stocks could hog the limelight ahead of Infosys results on Friday and due to a rising rupee. Grasim and UltraTech might continue to see some action as the market tries to digest the proposed restructuring.
FIIs were net sellers of Rs1.57bn in the cash segment on Tuesday on a provisional basis. The local funds were net sellers of Rs7.67bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs5.88bn. On Monday, FIIs were net sellers of Rs2.37bn in the cash segment. The net FII investments in Indian stocks this year have crossed $12.6bn.
US stocks closed higher on Tuesday, gaining for a second straight session as a weaker dollar boosted commodities and currency-sensitive stocks.
The Dow Jones Industrial Average rose 132 points, or 1.4%, to 9,731.25. The S&P 500 index gained 14 points, or 1.4%, to 1,054.72 and the Nasdaq Composite rose 35 points, or 1.7%, to 2,103.57.
The rally had been stronger through midday, but lost some steam as the dollar cut losses and financial shares turned mixed to negative. Gains were broad-based, with 29 of 30 Dow stocks rising. Materials and commodities stocks surged.
Worries that the rally had gotten ahead of the recovery caused the selloff at the end of the third quarter and start of the fourth. But that decline of just over 4% on the S&P 500 seemed to make stocks attractive for investors to jump back in.
Investors also welcomed reports that Australia became the first major economy to lift interest rates since the start of the financial crisis.
Meanwhile, the falling dollar boosted gold to an all-time high of $1,045 an ounce during the session and $1,039.70 at the close. The weak dollar was also good for the stocks of multi-national companies that benefit from a weaker dollar.
A weaker-than-expected response to a government debt auction dulled some of the shine on the rally.
An upbeat reading on the services sector helped spark Monday's advance, but there was little else on the docket until Wednesday when readings on consumer credit and the Treasury budget are due.
A rally in US stocks that started in March, petered out late September at the end of an otherwise upbeat third quarter. In the July-September period, the Dow and S&P 500 both jumped 15%, their best quarter in a decade, while the Nasdaq rose 15.7%, its best quarter in six years.
But the September selloff was modest amid the broader rally that's been in place since last March. Since bottoming at a 12-year low March 9, the S&P 500 has gained 56%, and the Dow has gained 49% as of Tuesday's close. After hitting a six-year low, the Nasdaq has gained nearly 68%.
Ahead of the first big batch of results, a few companies issued warnings about their just-completed quarter.
Dow component Boeing said it will take a $1 billion charge in the third quarter because of higher costs to produce its 747-8 airplanes amid rough market conditions. The stock was little changed.
St. Jude Medical warned that third-quarter results would miss earlier forecasts because hospitals bought fewer of its medical devices. Shares fell nearly 13% in unusually active New York Stock Exchange trading.
Global markets rallied after Australia became the first major economy to boost interest rates since the financial crisis began. Australia's central bank boosted its overnight lending rate by a quarter percentage point to 3.25%, saying it was time to start taking away the stimulus of low rates as the economy is no longer weakening.
The dollar tumbled versus the euro and the yen, resuming its recent plunge against a basket of currencies.
US light crude oil for November delivery settled up 47 cents to $70.88 a barrel on the New York Mercantile Exchange.
COMEX gold for December delivery rose $21.90 to settle at a record $1,039.70 an ounce, after rising as high as $1,045, an intraday record. The previous record close of $1,020.20 was set two weeks ago.
Treasury prices fell, raising the yield on the 10-year note to 3.25% from 3.22% late on Monday.
The government saw good, but not great, demand for its auction of $39 billion in 3-year notes. Treasury said the bid-to-cover ratio, which measures demand, was 2.76, short of the 3.02 ratio seen the last time it sold 3-year notes.
The third-quarter earnings reporting period unofficially kicks off on Wednesday with Dow component Alcoa. The aluminum maker is expected to post a loss versus a profit a year ago, demonstrating the weak quarter expected for the materials sector.
S&P 500 profits are expected to have dropped almost 25% from the third quarter of 2008.
European shares posted their largest one-day rise in six weeks, rising for the second straight session as a record high for gold futures boosted the mining sector and a broker upgrade helped the banking sector.
The pan-European Dow Jones Stoxx 600 index was up 2.1% at 241.13 in a broad-based advance, its strongest rise since Aug. 21. Germany's DAX index rose 2.7% to 5,657.64, the UK's FTSE 100 index climbed 2.3% to 5,137.98 and the French CAC-40 index advanced 2.6% to 3,770.21.
If Monday blues had the bulls running for cover, Tuesday witnessed a complete turnaround. Markets started off on a promising note tracking strong cues from the US and the Asian markets, but the up tick was short lived as telecom heavyweights like Bharti Airtel, RCom, Idea and MTNL plunged sharply after reports stated that TRAI may soon ask operators to compulsorily give the option of paying tariff based on usage per second instead of the current per minute pulse.
However, markets staged a V-Shaped recovery in the second half of the trading session led by the FMCG, Metals and the Banking stocks. The Mid-Cap stocks which were badly beaten down initially also attracted buying towards the end.
Technically speaking, the Nifty found strong support at the 4910-20 levels (its 21 DMA). Another positive signal is that the index managed to close above the 13 DMA and the 5,000 mark creating a hammer chart pattern (the Hammer indicates that the prior downtrend is about to end and may reverse to an uptrend or move sideways).
Finally, the BSE Sensex gained 92 points or 0.6% to end at 16,958 after touching a high of 16,988 and a low of 16,622. The index opened at 16,879 against the previous close of 16,866. The NSE Nifty added 24 points or 0.5% to shut shop at 5,027.
In Asia, the Nikkei in Japan was marginally up 0.2%, while Australia's S&P/ASX ended higher by 0.4% at 4,591. Shanghai SE Composite in China was closed on account of holiday. However, Hang Seng index in Hong Kong gained 1.8%.
In Europe, stocks were in the green. The FTSE in the UK was up 1.4%, The DAX in Germany was up 1.5% and the CAC 40 index in France was up 1.5%.
Coming back to India, among the BSE sectoral indices, the FMCG index was the top gainer, adding 3.5%, followed by the Metal index that was up 2.2% and the BSE Bankex index was up 2%. Even the BSE Mid-Cap index gained 0.2% however, the BSE Small-Cap index was down 0.7%.
BSE Teck index was the top loser, shedding 3.5% followed by BSE Realty and IT index down over 0.5% each.
Among the 30-components of Sensex, 16 stocks ended in the green and 14 ended in the negative terrain. Among the major gainers were Hindalco, HUL, Reliance Infra, ITC and BHEL.
On the other hand, RCom, Bharti Airtel, ACC and Wipro were among the major laggards.
The telecom stocks slumped after TRAI may ask operators to compulsorily give their customers the option of paying tariff based on usage per second instead of the current per minute pulse, sector regulator Trai said today.
"We may ask all the operators to consider per-second pulse as a mandatory tariff option along with their other tariff plans," Trai Chairman J S Sarma was quoted as saying. He said Trai may soon come out with a consultation paper on the subject and invite suggesstions about making it mandatory for operators to provide customers with this option.
The Trai chief further said that since the current regulations allow the operators to decide the tariffs on their own, "I cannot say whether the time has come to reconsider this particular clause."
L&T’s Buildings & Factories Operating Company - a part of its Construction Division - has bagged new orders aggregating Rs15.13bn during the second quarter of the year 2009-10 for the construction of high rise tower, luxury hotel, hospital & factory building projects.
Shares of L&T gained by 1.5% to Rs1680. The stock opened at Rs1655 and made an intra-day high of Rs1687 and a low of Rs1621. Total traded volumes stood at 0.37mn shares.
Shares of Prism Cement plunged by over 6.5% to Rs51 after earnings report. The Company posted a PAT of Rs349.7mn for the quarter ended September 30, 2009 as against a PAT of Rs150.1mn for the previous quarter ended and net sales increased to Rs2.28bn from Rs1.63bn during the corresponding quarter ended September 30, 2008.
The stock opened at Rs55.8 and made an intra-day high of Rs55.8 and a low of Rs48. Total traded volumes stood at 3.7mn shares.
Gammon Infrastructure announced that it has concluded the purchase of 2,28,77,500 equity shares of Rs10/- each of Vizag Seaport Pvt. Ltd. ("VSPL") from International Port Services Pvt. Ltd., the investment arm of Portia Management Services Ltd. of UK.
The shareholding of the Company in VSPL stand increased to 73.76%, making VSPL a subsidiary of the Company with effect from October 01, 2009.
Gammon Infra slipped by over 1.2% to Rs97. The stock opened at Rs99.9 and made an intra-day high of Rs99.9 and a low of Rs93. Total traded volumes stood at 15,000 shares.
Shares of Hindustan Dorr Oliver surged by over 5% to Rs137.6 after the company bagged an order from BALCO (a Vedanta Group of Company) worth Rs1.3bn for Design, Engineering, procurement, manufacturing, supply, civil works, erection/ construction, testing & commissioning of Fume Treatment plant for their Smelter Expansion Project at Korba. Fives Solios, France a world class expert in this field is the Technology partner for this project.
The total order value along with Fives Solios, France is worth Rs2.76bn. Execution of the said Project shall be completed within a period of 20 months.
The Company has already successfully completed similar project with Vedanta group for its existing smelter project at Jharsuguda, Orissa.
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