| COMPANY NAME | S3 | S2 | S1 | CLOSING PRICE | R1 | R2 | R3 |
| ABB | 748 | 774 | 790 | 816 | 832 | 858 | 873 |
| ACC | 746 | 756 | 773 | 784 | 801 | 811 | 829 |
| Ambuja Cem | 78 | 81 | 88 | 91 | 98 | 101 | 107 |
| BHEL | 2,231 | 2,341 | 2,410 | 2,520 | 2,590 | 2,700 | 2,769 |
| BPCL | 463 | 479 | 509 | 525 | 555 | 571 | 601 |
| Bharti | 279 | 292 | 314 | 326 | 348 | 361 | 382 |
| Cairn | 236 | 258 | 271 | 292 | 305 | 326 | 339 |
| Cipla | 268 | 275 | 286 | 293 | 304 | 311 | 321 |
| DLF | 384 | 414 | 431 | 461 | 478 | 508 | 525 |
| Gail | 349 | 360 | 371 | 382 | 394 | 405 | 416 |
| Grasim | 2,297 | 2,325 | 2,363 | 2,391 | 2,428 | 2,456 | 2,494 |
| HCL Tech | 272 | 282 | 291 | 301 | 310 | 320 | 329 |
| HDFC Bank | 1,570 | 1,626 | 1,664 | 1,720 | 1,757 | 1,813 | 1,851 |
| Hero Honda | 1,553 | 1,584 | 1,613 | 1,644 | 1,673 | 1,704 | 1,732 |
| Hindalco | 117 | 124 | 129 | 136 | 141 | 148 | 153 |
| HUL | 267 | 273 | 281 | 287 | 294 | 300 | 308 |
| HDFC | 2,524 | 2,643 | 2,717 | 2,836 | 2,911 | 3,030 | 3,104 |
| ICICI Bank | 832 | 881 | 910 | 959 | 989 | 1,038 | 1,067 |
| Idea | 58 | 60 | 61 | 63 | 65 | 67 | 68 |
| Infosys | 2,051 | 2,087 | 2,154 | 2,190 | 2,257 | 2,293 | 2,360 |
| ITC | 228 | 236 | 244 | 252 | 261 | 269 | 278 |
| L&T | 1,569 | 1,617 | 1,647 | 1,695 | 1,726 | 1,774 | 1,804 |
| M&M | 791 | 842 | 889 | 939 | 986 | 1,037 | 1,083 |
| Maruti | 1,407 | 1,442 | 1,479 | 1,515 | 1,552 | 1,588 | 1,625 |
| Nalco | 321 | 332 | 342 | 353 | 362 | 373 | 383 |
| NTPC | 195 | 202 | 208 | 215 | 222 | 228 | 235 |
| ONGC | 1,156 | 1,186 | 1,216 | 1,246 | 1,277 | 1,306 | 1,337 |
| Powergrid | 102 | 106 | 108 | 112 | 115 | 118 | 121 |
| PNB | 755 | 798 | 823 | 866 | 891 | 934 | 959 |
| Ranbaxy | 356 | 367 | 380 | 391 | 403 | 414 | 426 |
| Rcom | 192 | 205 | 221 | 234 | 251 | 264 | 280 |
| Reliance | 2,045 | 2,113 | 2,151 | 2,219 | 2,257 | 2,325 | 2,363 |
| Reliance Infra | 1,105 | 1,160 | 1,241 | 1,296 | 1,378 | 1,433 | 1,515 |
| Reiance Power | 147 | 153 | 157 | 163 | 168 | 174 | 178 |
| Satyam | 95 | 102 | 108 | 115 | 121 | 128 | 133 |
| Siemens | 535 | 556 | 571 | 592 | 607 | 628 | 643 |
| SBI | 1,777 | 2,039 | 2,184 | 2,446 | 2,591 | 2,854 | 2,999 |
| SAIL | 159 | 169 | 175 | 186 | 192 | 202 | 208 |
| Sterlite | 698 | 737 | 782 | 820 | 866 | 904 | 950 |
| Sunpharma | 1,250 | 1,278 | 1,328 | 1,355 | 1,405 | 1,433 | 1,483 |
| Suzlon | 81 | 84 | 86 | 89 | 92 | 95 | 97 |
| Tata Com. | 437 | 450 | 466 | 479 | 495 | 508 | 524 |
| TCS | 532 | 557 | 573 | 598 | 614 | 639 | 655 |
| Tata Motors | 496 | 527 | 548 | 579 | 601 | 631 | 653 |
| Tata Power | 1,190 | 1,279 | 1,329 | 1,418 | 1,468 | 1,557 | 1,607 |
| Tata Steel | 485 | 514 | 538 | 567 | 590 | 619 | 643 |
| Unitech | 91 | 96 | 100 | 105 | 108 | 113 | 117 |
| Wipro | 519 | 537 | 554 | 572 | 589 | 607 | 624 |
| Zee | 224 | 234 | 243 | 254 | 263 | 273 | 282 |
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Friday, October 16, 2009
Weekly Support and Resistance Levels- Oct 16 2009
Analjit Singh to hike stake in EIH: reports
Max India’s Analjit Singh is reportedly planning to buy stake in EIH and could join the founding Oberoi family as co-promoter and vice-chairman of third-largest hotel chain. A deal is likely to be finalised early next month. Singh owns around 26% in EIH, the operator of the Oberoi and Trident brands and the third-largest hotel chain behind Indian Hotels and ITC. Together, Singh and the Oberoi family will own a 52% stake in EIH. The Oberoi family, which owns 43% in EIH, will sell a little over 17% to Singh for up to Rs12.5bn, the report stated. Along with Singh’s shareholding through purchases in the open market, his stake will rise to 26%. Singh and EIH chairman PRS Oberoi have already signed a non-disclosure pact, and a due diligence for a final deal is currently under way, the newspaper report said. Once a deal is finalised, Singh will make the mandatory open offer for an additional 20% stake at a price expected to be between Rs165 and Rs185 per share.
But Singh, Max India founder, said that he is considering purchasing a stake in hotel operator EIH. "The matter is under deliberation," Singh was quoted as saying. While EIH Chairman PRS Oberoi said that "no decision has been taken." ITC, which owns nearly 14.9% in EIH, is evaluating the situation. A business daily quoted bankers close to ITC as saying that the FMCG giant may raise its holding to 15% and make an open offer for another 20%. LIC, New India Assurance and GIC together own a little over 10% in EIH while Reliance Capital's holding is a shade over 2%.
Weekly Newsletter - Oct 16 2009
After a cracker of a year, the bulls will hope they don’t have to go through the agony again. Every time the indices soar to multi-month highs, there is fear in the air. Liquidity continues to flow in from the foreign shores while on the domestic front there appears more caution and less action. Results have been more or less in line or better than street expectations. The coming truncated week will have a deluge of numbers for the market to ponder over. Inflation, though rising gradually could turn out to be a dampener in the coming months. Global cues will continue to have a major influence on the broader market. The hub of activity however may continue to remain in mid-caps and non-index counters. Do your token trades on muhurat day and have no regrets. The year promises to be much better than the one we just survived. Shubh Deepavali and Happy New Year.
Lukewarm response to NELP VIII
The Government said that it has received 76 bids for 36 blocks in an auction of oil and gas fields under the NELP VIII. The Centre had offered a total of 70 oil and gas exploration blocks. No bids were received in respect of the 16 deep water blocks, 15 shallow water blocks and 3 on-land blocks. Of the 24 deep water blocks on offer, bids were received only for eight, D.N. Narasimha Raju, Joint Secretary - Exploration in the Petroleum Ministry told reporters in New Delhi. The 13 shallow water blocks received bids while 10 small onland blocks got 37 bids while 5 larger onland blocks got 10 bids, he added.
Reliance Industries Ltd. (RIL) abstained from bidding for the 70 exploration blocks under the eighth round of auction under the NELP, companies such as BHP Billiton, BG and Cairn Energy were the only notable companies besides local giants like ONGC. There were 26 bids for 8 coal bed methane (CBM) blocks, said Raju. The Centre had offered 10 CBM blocks under the fourth round of the auction, said the joint secretary for exploration in the Petroleum Ministry. RIL bid for one CBM block.
The Government had launched the eighth bid round of New Exploration Licensing Policy (NELP VIII) and fourth bid round of Coal Bed Methane Policy (CBM IV) on April 9. It had offered the highest number of exploration blocks ever i.e. 70 blocks. The offered blocks included 24 deepwater blocks, 28 shallow water blocks, 8 onland blocks and 10 Type-S blocks. The Government had also offered 10 blocks under CBM IV.
The response of the E&P industry has been encouraging in the context of the global financial situation and responses to similar offers in many other countries, the Petroleum Ministry said in a statement. The data packages were purchased by 36 companies, including a large number of non-E&P companies, it added. A total of 62 companies, comprising 10 foreign and 52 Indian bid either on their own or as part of consortia. The Government said that 36 new companies bid either on their own or in consortium.
In respect of 8 deep water blocks, single bids were received from ONGC (6 blocks), BG Consortium (1 block) and Cairn Energy India Ltd. Consortium (1 block). Evaluation of the bids received under NELP VIII and CBM IV will be undertaken by the Government and the blocks are expected to be awarded within three months. The entire process, including signing of contracts is expected to be completed in four months.
IIP rebounds sharply in August
The index of India's industrial production grew by 10.4% in August 2009 which is the highest growth rate so far in the current financial year. First time after October 2007, the index of industrial production (IIP) has registered double digit growth rate. Significantly lower IIP growth rate in August 2008 too could have played a role in boosting the headline number in the month under review. India’s industrial production rose by 5.8% in April-August 2009-10 versus 4.8% in the same period a year earlier. The Government announced that it had revised the July industrial output figure to a growth rate of 7.2% from 6.8% predicted earlier.
Mining production rose by 12.9% as against 2.8% YoY. The manufacturing output climbed by 10.2% as against 1.7% in August 2008, while electricity saw a growth rate of 10.6% versus 0.8% in the same period last year. Consumer Durables output gained 22.3% as against 3.9% in the same period last year. While, Consumer Non-Durables output declined to 3.7% as against 7.3% in the corresponding month last year. Overall Consumer Goods output was at 8.5% versus 6.4% YoY.
Capital Goods production soared to 8.3% from 0.9% in the same month of last year. Basic Goods output was at 10% versus 3.9% in August 2008. Intermediate goods also grew at 14.3%, suggesting strong production going forward. Fourteen of the 17 segments saw growth during August, with seven of these 14 registering double-digit growth. The June IIP numbers had fueled hopes of a better-than-expected recovery, with the index showing 8.2% growth (up from 2.1% in May).
Next batch of Q2 earnings to dictate trend
Second quarter earnings from leading companies will be the focus for stock investors next week. Profit taking may cap upside as the market has more than doubled since early March 2009. Rising fund inflows from foreign investors amid a worldwide jump in appetite for risk, has driven the solid rally.
A special one hour Muhurat trading session will be held on Saturday, 17 October 2009, between 18:15 to 19:15 IST to pay obeisance to Lakshmi the Hindu goddess of wealth and prosperity. Investors make token purchases on the Muhurat trading day to mark the beginning of the new Samvat year as per the Hindu calendar. The market remains closed on Monday, 19 October 2009 on account of Diwali.
Foreign institutional investors (FIIs) inflow in October 2009 totaled Rs 4409.40 crore (till 14 October 2009). Foreign funds had bought equities worth Rs 17,328 crore in September 2009. FII inflow in the calendar year 2009 totaled Rs 64,546.60 crore (till 14 October 2009).
Quarterly results announced so far have boosted market confidence. A leading foreign brokerage suggested that Indian stocks are in a 'sweet spot' as earnings rebound. The report issued by the brokerage said that earnings for companies in the Sensex will gain 15% in the financial year ending 30 March 2010 (FY 2010), and 23% in the next 12 months, increasing earlier estimates of 10% for FY 2010 and 20% growth for the year ending March 2011 (FY 2011)
Some prominent companies which will announce Q2 September 2009 results next week include, Jaiprakash Associates, Larsen and Toubro, Maruti Suzuki India, Bharat Heavy Electrical (Bhel), Steel Authority of India (Sail), Tech Mahindra, Hero Honda, Sesa Goa, Punj Lloyd, IDFC, Dr Reddys Laboratories, JSW Steel, Zee News and Asian Paints.
The legal outcome of the tiff between the Ambani brothers is a major event to watch out next week. The spat between Mukesh Ambani-controlled Reliance Industries (RIL) and Anil Dhirubhai Ambani's Reliance Natural Resources (RNRL) is set for a Supreme Court hearing of 20 October 2009.
The dispute is over a deal for RIL to sell gas to Anil Ambani's RNRL at below-market rates as agreed in a 2005 family settlement to divide the business following their father's death in 2002.
The Reserve Bank of India (RBI), which slashed lending rates last year, is widely expected to keep interest rates unchanged when it releases the policy statement on 27 October 2009.
Marketmen will be looking for the RBI's comments on the outlook for policy later this year, as manufacturing activity picks up steam and a revival in demand reignite inflationary pressure.
However, C Rangarajan, the chairman of the Prime Minister's Economic Advisory Council said on Wednesday, 14 October 2009, that RBI may not raise its policy rates unless inflationary pressures build up sharply, but may use other tools to soak up excess cash. Mr. Rangarajan said India may want to await further clarity on inflation before reversing its accommodative policy.
Wholesale prices in India have recently started rising after several weeks of decline. Inflation based on the wholesale price index (WPI) rose 0.92% in 12 months to 3 October 2009, slightly above previous week's annual rise of 0.7%, data released by the government on 15 October 2009, showed. Within the WPI, the food articles index rose 13.34%. Meanwhile, the government revised upwards inflation for the year through 8 August 2009 to a much smaller decline of 0.37% from an estimated fall of 1.53%.
Rally continues unabated
The market recouped most of the last week's losses to close above the psychological levels of 17000 for the barometer index the BSE Sensex and 5000 for the 50-unit S&P CNX Nifty. News of a probable patch-up between the two Ambani brothers and a surprisingly strong industrial production numbers worked as a sentiment boosters.
Strong global markets also lifted sentiments. The US Dow Jones index crossed the vital 10,000 mark, more than a year after getting clobbered by a sudden implosion of the financial system.
The BSE 30-share Sensex rose 680.16 points or 4.09% to settle at 17,322.82 in the week ended Friday, 16 October 2009. The S&P CNX Nifty rose 196.95 points or 3.98% to 5,142.15 in the week
The BSE Mid-Cap index jumped 307.11 points or 4.87% to 6,608.49 and the BSE Small-Cap index rose 295.21 points or 4% to 7,667.
Foreign institutional investors (FIIs) inflow in October 2009 totaled Rs 4409.40 crore (till 14 October 2009). Foreign funds had bought equities worth Rs 17,328 crore in September 2009. FII inflow in the calendar year 2009 totaled Rs 64,546.60 crore (till 14 October 2009).
Industrial production (IIP) rose a robust 10.4% in August 2009. It is the fastest pace of growth in 22 months. Manufacturing output rose 10.2%. The government revised upwards industrial production growth for July 2009 to 7.2% from an earlier estimated 6.8%.
Inflation based on the wholesale price index (WPI) rose 0.92% in 12 months to 3 October 2009, slightly above previous week's annual rise of 0.7%, data released by the government on Thursday showed. Within the WPI, the food articles index rose 13.34%. The government revised upwards inflation for the year through 8 August 2009 to a much smaller decline of 0.37% from an estimated fall of 1.53%.
C. Rangarajan, chairman of the prime minister's Economic Advisory Council said on Wednesday the Reserve Bank of India is likely to hold interest rates at a near decade-low in its policy review this month and the monetary stance can continue until inflationary pressures rise. Robust industrial growth could offset the impact of a 2 to 2.5% contraction in farm output due to weak monsoon, and help the economy grow between 6 and 6.5% in 2009/10, Rangarajan said.
Faster industrial output growth and rising inflationary pressures have strengthened case for an end to the RBI's accommodative monetary stance next year. Industrial output grew at its fastest pace in 22 months in August at 10.4 %.
The water level in main reservoirs rose 3 percentage points to 63% of capacity in the week to Thursday as unseasonal rain filled the tanks to levels closer to normal, government data showed. Over the last 10 years, water levels in India's 81 main reservoirs have on average been steady at 67% for three consecutive weeks at this time of the year.
Reservoirs are important for hydropower, which accounts for a quarter of India's generation capacity. They also provide water to irrigate winter crops such as wheat and rapeseed.
The key benchmark indices surged on Monday, 12 October 2009, led by index heavyweight Reliance Industries (RIL) on optimism for a patch-up between warring Ambani brothers and on better-than-expected industrial output data for August 2009. Firm European markets and higher US index futures aided rally. The BSE 30-share Sensex rose 384.01 points or 2.31% to 17,026.67. The S&P CNX Nifty rose 109.05 points or 2.21% to 5,054.25.
The stock market was closed on Tuesday, 13 October 2009, on account of assembly election in Maharashtra.
The key benchmark indices surged for the second day in a row on Wednesday, 14 October 2009, as a rally in global stocks, strong response to the initial public offer of Indiabulls Power, stronger-than expected Q2 results from housing finance major HDFC and healthy Q2 outcome from HDFC Bank, boosted market sentiment. The BSE 30-share Sensex rose 204.40 points or 1.2% to 17,231.11. The S&P CNX Nifty rose 63.95 points or 1.27% to 5,118.20.
Stock-specific buying continued even as the key benchmark indices edged lower in what was a choppy trading session on Thursday, 15 October 2009. The BSE 30-share Sensex fell 35.91 points or 0.21% to 17,195.20. The S&P CNX Nifty fell 9.35 points or 0.18% to 5,108.85.
Banking, realty stocks and index heavyweight Reliance Industries (RIL) led the rally on the bourses on Friday, 16 October 2009, as strong response to the initial public offer of Indiabulls Power, sustained buying by foreign funds and higher global stocks boosted sentiment. The BSE 30-share Sensex rose 127.62 points or 0.74% to 17,322.82. The S&P CNX Nifty rose 33.30 points or 0.65% to 5,142.15.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) jumped 5.55% in the week. RIL is in advanced talks to acquire refinery and petrochemical units in the US and Europe and could finalise a deal by end-2009, Maurice Bannayan, senior vice president at RIL said on Wednesday, 14 October 2009.
Anil Dhirubali Ambani group (ADAG) Chairman Anil Ambani called on Sunday, 11 October 2009, for a renewed effort to end a bitter feud with his brother Mukesh Ambani triggered by the carve-up of up a vast family business stretching from energy to telecommunications and financial services.
Anil Ambani said in a statement he believed "all disagreements can be sorted out in a constructive, cordial and conciliatory manner", and called for "a generous heart, a willing mind and accommodating spirit to resolve issues".
Their latest dispute is over a deal for Mukesh Ambani's Reliance Industries to sell gas to Anil Ambani's Reliance Natural Resources (RNRL) at below-market rates as agreed in a 2005 family settlement to divide the business following their father's death in 2002. The dispute has landed in the Supreme Court (SC). Anil Ambani said on Sunday the contentious gas dispute is a large national issue and can only be resolved through the SC.
RIL said it welcomes Anil Ambani's call to make a renewed effort to "resolve, reconcile and reciprocate" and said it hopes that it is a positive change in the negative, calumnious and malafide campaign launched by ADAG against RIL.
RIL, last week, announced liberal 1:1 bonus issue. Both the bonus and the dividend are applicable to shareholders of the erstwhile Reliance Petroleum, which has been merged with RIL. Meanwhile, a sharp year on year fall in refining margins will weigh on Q2 September 2009 results of RIL.
Oil exploration stocks rose as crude oil rose above $78 a barrel on Friday, 16 October 2009, capping its biggest weekly gain in two months, on an unexpected decline in US gasoline stockpiles and refinery utilization. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.
Cairn India rose 11.63%. UK-based oil and gas exploration major Cairn Energy Plc has mopped up $240 million by selling 2.3% in its Indian subsidiary Cairn India to Malaysia's Petronas International Corporation.
With this move, Petronas' stake in Cairn India jumps to 14.94%, within touching distance of an open offer trigger. Cairn UK now retains a 62.75% interest in Cairn India, which made a major oil discovery (Mangala) in Rajasthan in the north west of India in 2004. Cairn India, the Indian arm of the UK firm, has interests in a total of 13 acreage blocks in India and Sri Lanka.
India's second biggest state-run oil exploration firm by revenue Oil India was almost unchanged. The company was listed on the bourses on 30 September 2009.
India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) rose 1.80%. ONGC has bagged over a third of the 70 blocks offered under the government's eighth New Exploration Licensing Policy (NELP 8), amid luke-warm response towards the bidding round. ONGC bid for 25 blocks and was awarded 11 offshore and two onshore concessions.
Nearly half of 70 blocks offered under NELP 8 found no bidder, with 76 bids submitted for 36 exploration blocks, D.N. Narasimha Raju, joint secretary in the oil ministry said on Monday.
PSU OMCs fell as higher crude oil prices will increase under-recoveries on domestic sale of petrol, diesel, kerosene and LPG at controlled prices. HPCL (down 7.52%), BPCL (down 6.53%) and Indian Oil Corporation (IOC) (down 4.10%), declined.
Bank stocks rose on recent reports the central bank will hike the ceiling on the portion of government securities that banks can park in held-to-maturity (HTM) category. India's largest bank by net profit and branch network State Bank of India rose 18.78%. Bank of India (up 16.02%), Punjab National Bank (up 5.43%), Union Bank of India (up 13.69%), Punjab National Bank (up 5.43%) and Bank of Baroda (up 9.68%), surged.
India's largest private sector bank by net profit ICICI Bank rose 6.34%. The bank last week reduced auto loan rates by 50 basis points.
India's second largest private sector bank by net profit HDFC Bank rose 2.73%. The bank's net profit rose 30.2% to Rs 687.46 crore in Q2 September 2009 over Q2 September 2008. The results, which hit the market during trading hours on Wednesday, 14 October 2009, were more or less in line with market expectations.
Banks do not have to make any mark-to-market provisions on securities held in the HTM category if prices of securities fall. Provisions have to be made out of profit and therefore, impact a bank's bottom line. Yields on ten-year government bonds have risen sharply this year. Bond prices and bond yields are inversely related.
Indian banks can put bonds equal to 25% of the value of deposits in their HTM accounts. The market expectations is for an increase in the ceiling by up to 2 percentage points, possibly at a quarterly monetary policy review on 27 October 2009.
India's largest dedicated housing finance firm Housing Development Finance Corporation (HDFC) rose 4.87%. HDFC, after market hours on Monday said net profit rose 24.27% to Rs 663.94 crore in Q2 September 2009 over Q2 September 2008. The results beat market expectations.
Indiabulls Financial Services rose 3.03%. The company is reported to have received the Reserve Bank of India's special approval to hold up to 74% in its proposed life insurance joint venture France's Societe Generale.
Realty stocks rose on recent reports that demand for residential projects in major cities is picking up on lower home loan rates, property price cuts by developers and a recovery in the job market. Realty market had slumped last year amid a global credit crunch and buyers fearing job losses. DLF (up 10.73%), Omaxe (up 2.04%), Ackruti City (up 4.66%), Unitech (up 6.34%), advanced.
India's largest copper maker by sales Sterlite Industries rose 3.55%. The company has raised $500 million in convertible senior notes and plans to use the proceeds primarily for expansion of its copper business. The notes are convertible into American depositary shares at $23.33 per share.
India's largest tractor maker by sales Mahindra & Mahindra rose 5.62%. Total sales 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 top small car maker by sales Maruti Suzuki India rose 2.74%. 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 rose 5.51%. Tata Motors is planning to ramp up production of its Nano, billed as the world's cheapest car, by a fifth this month, Rajiv Dube, head of the company's passenger car business said on Wednesday. The company said during market hours on 9 October 2009 it had raised $750 million through an issue of global depositary receipts (GDRs) and convertible bonds. The company said it will use the funds to repay debt taken for acquisition of Jaguar Land Rover (JLR).
But, Bajaj Auto dropped 6.98% on profit booking after a recent strong surge. Bajaj Auto's net profit jumped 117.85% to Rs 402.83 crore in Q2 September 2009 over Q2 September 2008. The company announced the Q2 results during trading hours on Thursday, 15 October 2009.
Total domestic automobile sales in the country in the first half of the financial year 2009-10 rose by 14.51% year-on-year to 57,82,920 units, according to automobile sales figures released by the Society of Indian Automobile Manufacturers (Siam). The jump in sales for the April-September period came from the double-digit growth posted by the passenger vehicle segment (comprising cars and sports utility vehicles) which grew by 13.46%, by the 15.68% spurt in two-wheeler sales and by an increase of 12.37% in sales of three-wheelers.
Ultratech Cement fell 4.84%. The company issued a cautious outlook at the time of announcing Q2 results during trading hours on Friday, 16 October 2009. Net profit jumped 53% to Rs 251 crore in Q2 September 2009 over Q2 September 2008.
UltraTech said the performance was affected on a sequential basis due to lower demand in Southern India. The net profit dropped 39.94% to Rs 250.90 crore in Q2 September 2009 over Q1 June 2009.
The company said the cement demand may grow 9% in the year ending March 2010 on the back of government's initiative to boost rural development, infrastructure and housing. It, however, said new capacities which at various stages of implementation will result in pressure on margins.
The company said its focus on higher volume growth, captive power generation and capital productivity will help offset the impact of lower prices on margins.
BSE Bulk Deals to Watch - Oct 16 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
16/10/2009 531897 ACCENT TECH HITESHSHASHIKANTJHAVERI B 81295 134.08
16/10/2009 531897 ACCENT TECH TRACTEL SOLUTIONS INC S 77000 134.00
16/10/2009 531897 ACCENT TECH HITESHSHASHIKANTJHAVERI S 86126 133.79
16/10/2009 532989 BAFNA PHARMA DHIRENDRA SIMAIYA B 115000 21.76
16/10/2009 532989 BAFNA PHARMA SASIKALA BAFNA S 102700 21.75
16/10/2009 532230 BENGAL TEA F BINA S VORA B 144349 42.14
16/10/2009 524663 BHARAT IMUNO SHARADKANTILALSHAH B 500000 17.75
16/10/2009 524663 BHARAT IMUNO ICICI BANK LIMITED S 500000 17.75
16/10/2009 590081 BRAHMANAND ABHIYAN MERCHANT PVT LTD S 100000 8.47
16/10/2009 532813 C & C CONSTR RAMNISHKAPOOR B 154427 242.30
16/10/2009 532813 C & C CONSTR RAMNISHKAPOOR S 154427 244.69
16/10/2009 531682 CAT TECHNOL VINODAMRATLALNAAI B 393726 14.30
16/10/2009 531682 CAT TECHNOL VINODAMRATLALNAAI S 191535 14.39
16/10/2009 531682 CAT TECHNOL S V ENTERPRISES S 277300 14.22
16/10/2009 532405 CCS INFOTECH MEGHAMAHESHKHANDELWAL B 77177 6.37
16/10/2009 532405 CCS INFOTECH MEGHAMAHESHKHANDELWAL S 67384 6.44
16/10/2009 532363 COMP-U-LEARN ARCADIA SHARE & STOCK BROKERS PVT. LTD B 81001 27.29
16/10/2009 532363 COMP-U-LEARN HITESHSHASHIKANTJHAVERI B 124462 27.33
16/10/2009 532363 COMP-U-LEARN VIPUL RAMESHCHANDRA SHAH B 75000 26.92
16/10/2009 532363 COMP-U-LEARN RAMESH BABU P S 67900 27.00
16/10/2009 532363 COMP-U-LEARN PRABHAKARA RAO PILLI S 65076 26.86
16/10/2009 532363 COMP-U-LEARN HITESHSHASHIKANTJHAVERI S 124027 27.30
16/10/2009 533109 EURO MULTI KANUDIA CAPITAL AND MANAGEMENT SERVICES PVT LTD B 250000 49.00
16/10/2009 533109 EURO MULTI GENUINE STOCK BROKERS PVT. LTD. B 132168 50.23
16/10/2009 533109 EURO MULTI TOUCHSTONE FINVEST SERVICES PVT LTD B 168273 52.17
16/10/2009 533109 EURO MULTI TRANSGLOBAL SECURITIES LTD. B 583181 49.18
16/10/2009 533109 EURO MULTI RAJNISHJAIN B 382899 49.86
16/10/2009 533109 EURO MULTI ARIHANT SEC & INVESTMENT B 253621 50.98
16/10/2009 533109 EURO MULTI AMBIT SECURITIES BROKING PRIVATE LIMITED B 165957 48.89
16/10/2009 533109 EURO MULTI NIRAJHARSUKHSANGHVI B 140111 51.39
16/10/2009 533109 EURO MULTI OPG SECURITIES P LTD B 270715 50.34
16/10/2009 533109 EURO MULTI R.M.SHARES TRADING PVT.LTD B 147348 50.10
16/10/2009 533109 EURO MULTI BHARAT SECURITIES PVT LTD B 125906 49.59
16/10/2009 533109 EURO MULTI JMP SECURITIES PVT LTD B 281077 43.87
16/10/2009 533109 EURO MULTI KANUDIA CAPITAL AND MANAGEMENT SERVICES PVT LTD S 250000 44.00
16/10/2009 533109 EURO MULTI GENUINE STOCK BROKERS PVT. LTD. S 132168 50.27
16/10/2009 533109 EURO MULTI TOUCHSTONE FINVEST SERVICES PVT LTD S 168273 50.04
16/10/2009 533109 EURO MULTI TRANSGLOBAL SECURITIES LTD. S 583076 49.16
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Post Session Commentary - Oct 16 2009
Domestic market bounced back from opening losses to close higher, backed by firm cues from European markets. In addition, firm US index futures also added to the positive sentiments. Key benchmark indices witnessed upswing despite negative cues from Asian stocks. Market gained ground as strong buying emerged in banking and realty stocks. Meanwhile, investors were a bit cautious ahead of a long weekend. The market will remain close on Monday, 19 October 2009 on account of Diwali. However, a special one hour Muhurat trading session will be held tomorrow, 17 October 2009, between 18:15 to 19:15 IST. BSE Sensex ended above 17,300 level along with NSE Nifty closed above 5,100 level.
The market opened on flat note on the back of mixed cues from the markets all over the world. Asian stocks are mixed, as traders awaited further cues from corporate quarterly earnings. Besides, the US stock market ended up on Thursday with jump in the price of oil that lifted energy companies and offset weakness in bank shares. The pick up during final trading hours was led by the energy sector, which settled with a 2.0% gain. However, Indian benchmark indices gathered momentum soon after start and continued to trade on positive terrain, as buying activity emerged in key stocks. Further, stocks were continual to extend gains on strong response to the initial public offer of Indiabulls Power. Finally, market ended up tracking positive European stocks. From the sectoral front, most of the buying was seen in Realty, Bank, Oil & Gas, Power, PSU and Capital Goods stocks. Broader market indices also followed the same trend. However, Auto, Metal, FMCG and IT stocks remained under pressure.
Among the Sensex pack 15 stocks ended in green territory and 15 in red territory. The market breadth indicating the overall health of the market remained positive as 1506 stocks closed in green while 1264 stocks closed in red and 95 stocks remained unchanged in BSE.
The BSE Sensex higher by 127.62 points or (0.74%) at 17,322.82 and NSE Nifty ended up by 33.30 points or (0.65%) at 5,142.15. BSE Mid Caps and Small Caps closed with gains 69.26 and 36.87 points at 6,908.49 and 7,667 respectively. The BSE Sensex touched intraday high of 17,347.85 and intraday low of 17,126.55.
Gainers from the BSE Sensex pack are DLF Ltd (6.30%), SBI (5.30%), JP Associates (3.41%), Tata Power (3.39%), TCS Ltd (2.84%), ICICI Bank (2.41%), RCom (2.09%), Reliance (2.08%), HDFC (1.92%), Reliance (2.08%), HDFC (1.92%), Reliance Infra (1.53%), Tata Motors (1.04%) and BHEL (0.90%).
Losers from the BSE Sensex pack are Sterlite Industries (5.44%), M&M Ltd (2.28%), Tata Steel (1.44%), ITC Ltd (1.43%), ACC Ltd (1.29%), Infosys Tech (1.16%), NTPC Ltd (1.08%), ONGC Ltd (0.89%), HUL (0.85%) and Maruti Suzuki (0.66%).
On the global markets front, the Asian markets that opened before the Indian market, ended lower. Shanghai Composite, Hang Seng, Singapore''s Straits and Seoul Composite ended lower by 3.16, 69.18, 4.03 and 18.63 points at 2,976.63, 21,29.9, 2,708.12 and 1,640.36 respectively. However, Nikkei 225 gained 18.91 points at 10,257.56.
European markets, which opened after the Indian market, are trading up. In Paris the CAC 40 is higher 14.20 points at 3,898.03, whereas in Frankfurt DAX index is trading up 40 points at 5,870.77 and in London FTSE 100 is higher by 28.14 points at 5,251.09.
The BSE Realty index increased by (3.36%) or 152.24 points at 4,689.05. Gainers are DLF Ltd (6.30%), Parsvnath (4.74%), Ackruti (4.19%), Housing Dev (4.15%) and Penland Ltd (3.56%).
The BSE Bank index gained (2.29%) or 237.16 points 10,589.91. Gainers are Karnataka Bank (9.18%), Indus Ind Bank (7.38%), Oriental Bank (6.86%), Union Bank (6.53%) and Allahabad Bank (3.97%).
The BSE Oil & Gas index advanced by (1.19%) or 125.37 points at 210,661.59, as Crude oil futures saw a considerable spike this session following bullish inventory data. crude oil futures rose 3.2% to close at $77.58 per barrel. Gainers are Cairn Ind (4.18%), Essar Oil Ltd (3.95%), Reliance (2.08%) and RNRL (0.70%).
The BSE Power index closed higher by (0.89%) or 28.31 points at 3,217.99. Gainers are Lanco Infra (6.46%), GVK Power (4.46%), Tata Power (3.39%), Crompton Greaves (2.44%) and Reliance Infra (1.53%).
The BSE Auto index ended lower by (1.26%) or 84.24 6,618.28. Main losers are Bajaj Auto (4.83%), Escorts Ltd (3.97%), Cummins Indi (2.52%), M&M Ltd (2.28%) and Apollo Tyre (1.92%).
The Metal index ended down by (1.10%) or 174.38 points at 15,682.05, as Sterlite Industries (5.44%), Tata Steel (1.44%), Gujarat Nre C (1.41%), Jindal steel (1.08%) and Jai Corp Ltd (0.16%) ended in red.
Merck Ltd zoomed 19.99% after net profit increased significantly 48.72% to Rs. 26.16 crore in Q3 September 2009 over Q3 September 2008.
CMC Ltd spurted 1.94% to Rs. 1,228.05 on reporting 17.22% growth in net profit to Rs. 31.37 crore in Q2 September 2009 over Q1 June 2009.
Hindalco is up by 0.63%. The company''s board has increased the size of fund-raising plan by Rs 500 crore to Rs 2,900 crore, to be raised through the issue of securities to qualified institutional buyers. The board of directors has approved raising of long-term finance up to Rs 2,900 crore instead of earlier approval of Rs 2,400 crore.
Central Bank of India advanced by 3.41%. The bank has decided to change its trusteeship firm into a non-banking finance company (NBFC). Besides, the bank is also in talks with Aviva Life Insurance among others to set up an insurance distribution firm.
Hindustan Zinc Ltd gained 0.01% after the company hiked both zinc and lead price to match global rates.
Jaiprakash Hydro-Power Ltd slipped 2.23% after net profit took a slide of 6.64% to Rs. 62.41 crore on 1.21% fall in total income to Rs. 114.15 crore in Q2 September 2009 over Q2 September 2008.
Sterlite Industries India Ltd plunged 5.44% on equity dilution concerns after the company raised $500 million in convertible notes.
Bank of India lost 1.38%. The bank is planning to expand the branchless banking to 200 locations by the end of December. The bank has implemented the model to take the service to new areas.
Asian markets ends mixed
Nikkei, NZX 50 ends higher while Shanghai, Seoul finish lower
Stock market in Asian region finished on fluctuating note on Friday 16 October 2009, as a weakening yen that boosted the outlook for Japan’s exporters offset a decline among financial shares.
On Wall Street, the major averages rose into the close Thursday with the Dow staying atop the psychological 10,000 levels as increases in energy stocks helped to balance selling in financials.
After a mostly lower session, the Dow Jones Industrial Average ultimately rose 47.08 points, or 0.5%, to 10,062.94, while the S&P 500 added 4.54 points, or 0.4%, to 1,096.56. The Nasdaq also advanced 1.06 points, or 0.05%, to 2,173.29.
In the commodity market, crude oil was little changed after rising to a one-year high above $78 a barrel, helped by a larger drop in U.S. gasoline stockpiles than analysts had forecast.
Crude oil for November delivery traded for $77.43 a barrel, 15 cents lower in electronic trading on the New York Mercantile Exchange as of 10:20 a.m. London time.
Brent crude oil for December settlement fell as much as 56 cents, or 0.7%, to $75.67 a barrel on the London-based ICE Futures Europe exchange. The contract was at $75.79 a barrel at 9:55 a.m. in London.
Gold climbed, rebounding after its biggest decline in three weeks, as the dollar’s five-day slide boosted investor demand for the precious metal. Gold for immediate delivery rose as much as 0.4% to $1,053.88 an ounce and traded at $1,053.05 at 10:10 a.m. in Singapore.
In the currency market, Japanese yen tumbled sharply overnight as DOW manages to extend recent rally and closed above 10000 mark for the second consecutive day at 10062.9.
The Japanese yen softened against their major counterparts as a gain in stocks on improving corporate earnings reduced demand for safe-haven currencies. The Japanese yen was quoted at 90.80 against greenback.
The Hong Kong dollar was trading at HK$ 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 was flat on Friday, as investors cooled their heels following a heady week of trade which saw the unit gain more than 2 US cents to jump above $US0.9200. At the local close, the dollar was trading at $US0.9224, hardly changed from Thursday’s close of $US0.9223.
During the domestic session, the local currency moved between a low of $US0.9204 and a high of $US0.9270, the latter the Australian dollar’s highest point since it reached $US0.9300 in early August last year. The unit started the week at $US0.9034.
In Wellington trade, the New Zealand dollar pushed right up against the US75c figure today on ongoing demand for high yielding currencies then eased back. A pattern evident this week of the NZ dollar rising in its domestic session after slipping overnight was again a feature as was strength in the Australian dollar. Firm equity markets also helped sentiment. The NZ dollar was US74.62c at 5pm, having risen to US74.96c during the session, a new 15 month high. It was US74.30c at the open from US74.63c at 5pm yesterday.
The South Korean won finished at 1,164.50 won to the greenback, down 1155.10 from Thursday's close.
In the Asian markets, many investors in Asian stock markets took to the sidelines Friday as they waited for U.S. corporate earnings, with major indexes ending mixed in a narrow range. In the foreign-exchange market, the Australian dollar continued its recent rally.
In Japan, shares market finished the session in diverse terrain, endured gains for second consecutive day. Major banks and financials stocks dragged down the market as some US bank earnings disappointed investors. Manufacturers and oil-dependent industries were weighed down by worries of higher production costs due to the oil price surge. Some of the investors indulging in profit taking after the benchmark indices posted a strong rally this week.
At the closing bell, the Nikkei 225 Stock Average index rose 18.91 points or 0.18%, to 10,257.56, while the broader Topix slid 3.16 points, or 0.35% to 900.95.
The Nikkei 225 Stock Average index added 241.17 points or 2.41%, while the broader Topix index has gained 3.12 points or 0.35%, for the week ended Friday, 16 October 2009.
On the economic front, the Ministry of Finance said Japanese investors purchased a net 34.5 billion yen in foreign stocks during the week ended 10 October 2009. Japan residents also sold a net 256.2 billion yen in foreign bonds and notes last week.
Foreign investors bought a net 391.9 billion yen in Japanese stocks, the data showed, and they sold a net 300.8 billion yen in Japanese bonds and notes.
The Japanese government has terminated 2.926 trillion yen worth of programs that had been incorporated into the 14.7-trillion-yen extra budget for fiscal 2009, a move taken to free up funds for other uses. Among the canceled schemes were public works overseen by the Land Ministry, a multi-year aid program for farmers coordinated by the Agriculture Ministry, and a child-support program run by the Welfare Ministry. Certain allocations to local municipalities were also frozen. The Democratic Party of Japan government needs about 7.1 trillion yen to finance its campaign pledges, including cash handouts to families with children.
In Mainland China, share market finished the session little changed, with financial stocks led the losses. The banks and property stocks drifted lower in quiet trade, while profit taking continued to hit the gold majors. Higher oil prices sent energy share prices higher, while manufacturers and oil-dependent industries were weighed down by worries of higher production costs due to the oil price surge. Trade was subdued before the weekend and amid signs of some fatigue in the market and worries about heavy shares supplies.
The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, slipped 3.15 points, or 0.11%, to 2,976.63, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, rose 0.06%, to 3,241.71.
The Shanghai Composite index surged 64.91 points, or 2.23%, while the CSI 300 Index has gained 78 points or 2.47%, for the week ended Friday, 16 October 2009.
In Hong Kong, stock market ended in negative territory, snapped three days of winning streak, as profit booking across the sector following strong performance this week and worries about share supplies and China’s comments highlighting a time limit to China's easy monetary policy.
The Hang Seng Index declined 69.18 points, or 0.31%, to 21,929.90, while the Hang Seng China Enterprise plunged 108.25 points, or 0.84%, to 12,751.46.
The Hong Kong benchmark Hang Seng Index spurted 4430.46 points or 2%, while Hang Seng China Enterprises Index surged 255.4 points or 2.04%, in the week ended Friday, 16 October 2009.
In Australia, the share market stumbled, as market participants banked in profit following strong rally this week and ahead of the weekend. The banks and property stocks drifting lower in quiet trade after Citigroup’s results failed to live up to expectations overnight, while profit taking continued to hit the gold majors.
At the closing bell, the benchmark S&P/ASX200 index tumbled 23.5 points, or 0.48%, to 4,836.40, while the broader All Ordinaries retreated 19.90 points, or 0.41%, to 4,842.60.
The benchmark S&P/ASX200 index spurted 83.50 points, or 1.76% in the week ended 16 October 2009, meanwhile the Broader All Ordinaries gained 88 points or 1.85%, during same period.
In New Zealand, the share market managed to finish ahead but off its best levels. The benchmark NZSX-50 index closed up 4.806 points, or 0.151 percent, at 3191.29, after initially being up 18.72 points.
In South Korea, stocks finished lower as a strengthening local currency plunged exporting companies. The benchmark Korea Composite Stock Price Index (KOSPI) declined 18.63 points to end at 1,640.36, reversing two-day gains.
In Philippines, equities slipped ahead of the weekends as the traders continued to unwind their positions amid mixed Asian markets and lackluster cues from the US futures markets. The growth in money sent home by overseas Filipino workers (OFWs) in August was just 2.80% slower than the 9.3% recorded in July, when remittances strengthened despite the usually slow month, and was the slowest pace since April, which had recorded a 2.2% rate. This curbed the little exuberance generated by the official statements yesterday that remittances will allow the country to meet its 0.8%-1.8% growth target for this year. The benchmark index PSEi lost 0.67% or 19.97 points to 2,922.82, while the All Shares index fell 0.55% or 10.32 points to 1,847.06.
In India, banking, realty stocks and index heavyweight Reliance Industries (RIL) led the rally on the bourses as strong response to the initial public offer of Indiabulls Power, sustained buying by foreign funds and higher global stocks boosted sentiment.
The BSE 30-share Sensex was up 127.51 points or 0.74% to 17,322.71. The Sensex rose 152.65 points at the day's high of 17,347.85 in afternoon trade. The S&P CNX Nifty was up 34.60 points or 0.68% to 5,143.45. It hit a high of 5,149.65.
Markets ends Samvat 2065 on an upbeat note
Banking, realty stocks and index heavyweight Reliance Industries (RIL) led the rally on the bourses as strong response to the initial public offer of Indiabulls Power, sustained buying by foreign funds and higher global stocks boosted sentiment. The BSE 30-share Sensex rose 127.62 points or 0.74%, up close to 200 points from the day's low. Bulls were in complete command in the last seven months of Samvat year 2065. The new Samvat year 2066 as per the Hindu calendar begins on Saturday, 17 October 2009
India's biggest commercial bank in terms of branch network State Bank of India (SBI) jumped nearly 6%. Realty giant DLF spurted more than 6%. But, India's largest copper maker by sales Sterlite Industries fell on equity dilution worries after the company said before market hours it had raised $500 million in convertible notes. Auto and FMCG stocks also fell. Oil exploration stocks gained whereas PSU OMCs fell on rally in crude oil prices. The market breadth was positive.
The market recovered soon after an initial slide caused by mostly lower Asian stocks. The market extended gains later. The Sensex hit a fresh intraday high in early afternoon trade. The market continued to march higher in afternoon trade on gains in European stocks and higher US index futures. The market pared gains in mid-afternoon trade. The market regained strength in late trade.
A special one hour Muhurat trading session will be held tomorrow, 17 October 2009, between 18:15 to 19:15 IST to pay obeisance to Lakshmi the Hindu goddess of wealth and prosperity. Investors make token purchases on the Muhurat trading day to mark the beginning of the new Samvat year as per the Hindu calendar. The market remains closed on Monday, 19 October 2009 on account of Diwali.
Emerging-market equity fund inflows surged in the second week of October 2009 on optimism improving US earnings and China's trade figures signal increased demand for commodities, fund tracker EPFR Global said on Friday, 16 October 2009. Heavy inflows were seen in funds specialized in BRIC countries -- Brazil, Russia, India and China. Asia ex-Japan funds received $823 million in the week ended 14 October 2009.
The Securities and Exchange Board of India (Sebi) on Friday said trades in corporate bonds should be cleared and settled through the National Securities Clearing Corp (NSCCL) or the Indian Clearing Corp (ICCL), effective from 1 December 2009. Last month, the Reserve Bank of India announced draft guidelines for corporate bond repos, and sought feedback on the proposals.
Inflation based on the wholesale price index (WPI) rose 0.92% in 12 months to 3 October 2009, slightly above previous week's annual rise of 0.7%, data released by the government on Thursday showed. Within the WPI, the food articles index rose 13.34%. The government revised upwards inflation for the year through 8 August 2009 to a much smaller decline of 0.37% from an estimated fall of 1.53%.
C. Rangarajan, chairman of the prime minister's Economic Advisory Council said on Wednesday the Reserve Bank of India is likely to hold interest rates at a near decade-low in its policy review this month and the monetary stance can continue until inflationary pressures rise. Robust industrial growth could offset the impact of a 2 to 2.5% contraction in farm output due to weak monsoon, and help the economy grow between 6 and 6.5% in 2009/10, Rangarajan said.
Faster industrial output growth and rising inflationary pressures have strengthened case for an end to the RBI's accommodative monetary stance next year. Industrial output grew at its fastest pace in 22 months in August at 10.4 %.
The water level in main reservoirs rose 3 percentage points to 63% of capacity in the week to Thursday as unseasonal rain filled the tanks to levels closer to normal, government data showed. Over the last 10 years, water levels in India's 81 main reservoirs have on average been steady at 67% for three consecutive weeks at this time of the year.
Reservoirs are important for hydropower, which accounts for a quarter of India's generation capacity. They also provide water to irrigate winter crops such as wheat and rapeseed.
Stock and sector-specific activity may dominate trade in the coming days based on expectations on Q2 September 2009 results. Auto firms are seen reporting strong Q2 results on strong volume growth and on lower input costs. Lower interest rates and pay hike for government employees has boosted auto sales this year after last year's slowdown in demand. Government employees have started receiving the balance 60% of their wage arrears as per the recommendations of the VIth Pay Commission.
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.
Banks are seen reporting a sedate growth in core lending amid sluggish credit offtake. On the flip side, PSU banks will benefit from treasury gains amid volatility in prices of government securities during the quarter.
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 on Friday pulled back from early gains made on the back of sharp gains for oil and gas firms, after results from General Electric and Bank of America triggered more uncertainly about earnings trends. Key benchmark indices in France, Germany and UK were down by between 0.24% to 0.53%.
Asian share markets were mixed as investors awaited fresh leads from major US corporate earnings. Key benchmark indices in South Korea, Hong Kong and Singapore were down by between 0.11% to 1.12%. Key benchmark indices in Japan, and Taiwan rose by between 0.06% to 0.18%.
China's Shanghai Composite index fell 0.31% on concerns the imminent launch of the Growth Enterprise Market, a Nasdaq-style board, would divert cash from current stocks.
China's banking regulator on Friday said major Chinese banks must make sure their lending does not run out of control and that their capital adequacy ratios do not deteriorate. The instruction was relayed to the lenders by Jiang Dingzhi, a vice-chairman of the China Banking Regulatory Commission (CBRC), at a meeting on Wednesday.
His comments are the latest sign of unease among regulators about the risks that banks are taking by ramping up lending to support the government's 4 trillion yuan ($585 billion) economic pump-priming package.
China's central bank has given its first public indication that it is thinking about when to move away from the ultra-loose monetary policy it adopted a year ago to shield the economy from the global financial crisis. Zhou Xiaochuan, governor of the People's Bank of China, said the bank had suspended its normal criteria for judging the right degree of monetary restraint, but could not do so forever.
Japan's economy has been picking up but lacks the drive of domestic demand, the government said in a monthly report on Friday, giving a bleaker view than the Bank of Japan. The central bank's policy board, this week, deferred a decision on withdrawing support for corporate finance after the government pressed it to consider what the economic cost would be if it retreated from credit markets.
US index futures reversed early gains. Trading in US index futures indicated Dow could fall 26 points at the opening bell today.
General Electric, the industrial bellwether, said its third-quarter profit dropped 44% to $2.42 billion, or 23 cents a share, as revenue fell 20% to $37.8 billion.
Bank of America posted a $2.2 billon loss, or 26 cents a share which was worse than analysts had been expecting.
US markets closed with marginal gains after a topsy-turvy session on Thursday on positive economic news and better than estimated earnings from Goldman Sachs and Citigroup. The Dow gained 47.08 points, or 0.5%, to 10,062.94, its highest close since last October. The S&P 500 index added 4.54 points, or 0.4%, to 1,096.56. The Nasdaq Composite Index rose 1.06 points, or 0.1%, to 2,173.29.
US technology services giant IBM's numbers came out after market close. The company raised its full-year outlook and reported higher-than-expected quarterly profit. The Internet search leader Google Inc handily beat analysts' expectations for both profit and revenue.
In the day's economic news, weekly jobless claims dropped to their lowest level since January 2009 at 514000.
Paul Volcker, an economic adviser to President Barack Obama and a former Fed chairman on Thursday said the enormous amounts of liquidity pumped into the US financial system by the Federal Reserve is not inflationary at the moment but will become so at some point. Volcker said it is difficult, but necessary, to start draining the billions of dollars in liquidity even while unemployment rates remained high as the US battles out of recession.
Billionaire investor George Soros said on Thursday the US economy is going to be a drag on world growth. Soros said he also believes there is a something of an asset bubble in China.
Closer home, 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.
Prime Minister Manmohan Singh on Thursday said the government is encouraging the listing of public sector enterprises on the stock markets as this will unlock the true value of companies, improve their corporate governance standards and help them raise resources for future expansion. He said the government would try to restructure and revive loss-making PSUs.
The BSE 30-share Sensex rose 127.62 points or 0.74% to 17,322.82 its highest closing since 16 May 2008. The Sensex rose 152.65 points at the day's high of 17,347.85 in afternoon trade. The barometer index fell 68.65 points at the day's low of 17,126.55 in early trade.
The S&P CNX Nifty rose 33.30 points or 0.65% to 5,148.35, its highest closing since 16 May 2008. It hit a high of 5,142.15. Nifty October 2009 futures were at 5147.10, at a premium of 4.95 points as compared to the spot closing of 5142.15. Turnover in NSE's futures & options (F&O) segment was Rs 56190.92 crore, sharply lower than Rs 71611.55 crore on Thursday, 15 October 2009.
BSE clocked a turnover of Rs 6237 crore, lower than Rs 6538.56 crore on Thursday, 15 October 2009.
The market breadth, indicating the overall health of the market was positive. On BSE, 1499 shares advanced as compared with 1262 that declined. A total of 95 shares remained unchanged.
Among the 30-member Sensex pack, 15 rose while the rest fell.
With foreign funds making heavy purchases, the Sensex is up 7,675.51 points or 79.56% in calendar year 2009 as on 16 October 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 9162.42 points or 112.27% as on 16 October 2009. FII inflow in the calendar year 2009 totaled Rs 65508.70 crore (till 15 October 2009).
Coming back to today's trade, the BSE Mid-Cap index rose 1.06% and outperformed the Sensex. The BSE Small-Cap index rose 0.48% and underperformed the Sensex.
Sectoral indices on BSE displayed mixed trend. The BSE Realty index (up 0.39%), the BSE Bankex (up 1.58%), the BSE Oil & Gas index (down 0.22%), the BSE Power index (up 0.49%), outperformed the Sensex.
The BSE Auto index (down 1.26%), the BSE Metal index (down 1.1%), the BSE FMCG index (down 0.89%), the BSE Consumer Durables index (down 0.71%), the BSE IT index (down 0.27%), the BSE Healthcare index (down 0.02%), the BSE Teck index (u 0.04%), the BSE Capital Goods index (up 0.49%), the BSE PSU index (up 0.61%), underperformed the Sensex.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) was up 2.08% to Rs 2,216.60. RIL is in advanced talks to acquire refinery and petrochemical units in the US and Europe and could finalise a deal by end-2009, Maurice Bannayan, senior vice president at Reliance Industries said on Wednesday.
Anil Dhirubali Ambani group (ADAG) Chairman Anil Ambani called on Sunday, 11 October 2009, for a renewed effort to end a bitter feud with his brother Mukesh Ambani triggered by the carve-up of up a vast family business stretching from energy to telecommunications and financial services.
Anil Ambani said in a statement he believed "all disagreements can be sorted out in a constructive, cordial and conciliatory manner", and called for "a generous heart, a willing mind and accommodating spirit to resolve issues".
Their latest dispute is over a deal for Mukesh Ambani's Reliance Industries to sell gas to Anil Ambani's Reliance Natural Resources (RNRL) at below-market rates as agreed in a 2005 family settlement to divide the business following their father's death in 2002. The dispute has landed in the Supreme Court (SC). Anil Ambani said on Sunday the contentious gas dispute is a large national issue and can only be resolved through the SC.
Reliance Industries (RIL) said it welcomes Anil Ambani's call to make a renewed effort to "resolve, reconcile and reciprocate" and said it hopes that it is a positive change in the negative, calumnious and malafide campaign launched by ADAG against RIL.
RIL, last week, announced liberal 1:1 bonus issue. Both the bonus and the dividend are applicable to shareholders of the erstwhile Reliance Petroleum, which has been merged with RIL. Meanwhile, a sharp year on year fall in refining margins will weight on Q2 September 2009 results of RIL.
Oil exploration stocks rose as crude oil rose above $78 a barrel today capping its biggest weekly gain in two months, on an unexpected decline in US gasoline stockpiles and refinery utilization. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.
Cairn India rose 4.18%. UK-based oil and gas exploration major Cairn Energy Plc has mopped up $240 million by selling 2.3% in its Indian subsidiary Cairn India to Malaysia's Petronas International Corporation.
With this move, Petronas' stake in Cairn India jumps to 14.94%, within touching distance of an open offer trigger. Cairn UK now retains a 62.75% interest in Cairn India, which made a major oil discovery (Mangala) in Rajasthan in the north west of India in 2004. Cairn India, the Indian arm of the UK firm, has interests in a total of 13 acreage blocks in India and Sri Lanka.
India's second biggest state-run oil exploration firm by revenue Oil India rose 1.17%.
But, India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) fell 0.89%. ONGC has bagged over a third of the 70 blocks offered under the government's eighth New Exploration Licensing Policy (NELP 8), amid luke-warm response towards the bidding round. ONGC bid for 25 blocks and was awarded 11 offshore and two onshore concessions.
Nearly half of 70 blocks offered under NELP 8 found no bidder, with 76 bids submitted for 36 exploration blocks, D.N. Narasimha Raju, joint secretary in the oil ministry said on Monday.
PSU OMCs fell as higher crude oil prices will increase under-recoveries on domestic sale of petrol, diesel, kerosene and LPG at controlled prices. HPCL, BPCL and Indian Oil Corporation (IOC) fell by between 0.26% to 2.43%.
Bank stocks rose on better than expected result by US banks Goldman Sachs and Citigroup on Thursday. India's largest bank by net profit and branch network State Bank of India rose 5.3%. Among other PSU banks, Bank of India, Punjab National Bank, Union Bank of India, Punjab National Bank and Bank of Baroda, rose by between 1.15% to 5.95%.
India's largest private sector bank by net profit ICICI Bank rose 2.41%. Its ADR was flat on Thursday. The bank last week reduced auto loan rates by 50 basis points.
But, India's second largest private sector bank by net profit HDFC Bank fell 0.32%. The bank's net profit rose 30.2% to Rs 687.46 crore in Q2 September 2009 over Q2 September 2008. The results, which hit the market during trading hours on Wednesday, were more or less in line with market expectations.
The central bank will reportedly hike the ceiling on the portion of government securities that banks can park in held-to-maturity (HTM) category. Banks do not have to make any mark-to-market provisions on securities held this basket if prices of securities fall. Provisions have to be made out of profit and therefore, impact a bank's bottom line. Yields on ten-year government bonds have risen sharply this year. Bond prices and bond yields are inversely related.
Indian banks can put bonds equal to 25% of the value of deposits in their HTM accounts. The market expectations is for an increase in the ceiling by up to 2 percentage points, possibly at a quarterly monetary policy review on 27 October 2009.
India's largest dedicated housing finance firm HDFC rose 1.92%. HDFC, after market hours on Monday said net profit rose 24.27% to Rs 663.94 crore in Q2 September 2009 over Q2 September 2008. The results beat market expectations.
Realty stocks rose on recent reports that demand for residential projects in major cities is picking up on lower home loan rates, property price cuts by developers and a recovery in the job market. Realty market had slumped last year amid a global credit crunch and buyers fearing job losses. DLF, Indiabulls Real Estate, Omaxe, Akruti City, Unitech rose by between 0.57% to 6.3%.
India's largest copper maker by sales Sterlite Industries fell 5.44% on equity dilution worries after company said before market hours it had raised $500 million in convertible senior notes and plans to use the proceeds primarily for expansion of its copper business. The notes are convertible into American depositary shares at $23.33 per share.
But a host of other metal shares rose on strong domestic demand. Hindalco Industries, National Aluminum Company, Hindustan Zinc, Steel Authority of India, Jindal Saw rose by between 0.01% to 6.35%.
Auto stocks fell on profit taking after recent strong gains. India's largest tractor maker by sales Mahindra & Mahindra fell 2.28%. Total sales 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.
Bajaj Auto dropped 4.83% extending losses for second straight day on profit booking. Bajaj Auto's net profit jumped 117.85% to Rs 402.83 crore in Q2 September 2009 over Q2 September 2008. The company announced the Q2 results during trading hours on Thursday, 15 October 2009.
India's largest motor bike maker by sales Hero Honda Motors fell 0.46%. Hero Honda is seen reporting robust Q2 results on the back of higher volumes and surge in profit margins due to fall in input costs. A total of nine brokerages expect a between 59.1% to 83.1% growth in Hero Honda's net profit at between Rs 487.20 crore to Rs 560.70 crore in Q2 September 2009 over Q2 September 2008. The company unveils Q2 results on Wednesday, 21 October 2009.
India's top small car maker by sales Maruti Suzuki India fell 0.66%. 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.
But, India's largest truck maker by sales Tata Motors rose 1.04%. Tata Motors is planning to ramp up production of its Nano, billed as the world's cheapest car, by a fifth this month, Rajiv Dube, head of the company's passenger car business said on Wednesday. The company said during market hours on Friday it has raised $750 million through an issue of global depositary receipts (GDRs) and convertible bonds. The company said it will use the funds to repay debt taken for acquisition of Jaguar Land Rover (JLR).
Total domestic automobile sales in the country in the first half of the financial year 2009-10 rose by 14.51% year-on-year to 57,82,920 units, according to automobile sales figures released by the Society of Indian Automobile Manufacturers (Siam). The jump in sales for the April-September period came from the double-digit growth posted by the passenger vehicle segment (comprising cars and sports utility vehicles) which grew by 13.46%, by the 15.68% spurt in two-wheeler sales and by an increase of 12.37% in sales of three-wheelers.
FMCG stocks fell on profit taking. Hindustan Unilever, ITC, Marico, Dabur India, Tata Tea and Nestle India fell by between 0.08% to 1.73%.
Ultratech Cement fell 2.37% after the company issued a cautious outlook at the time of announcing Q2 results during trading hours today. Net profit jumped 53% to Rs 251 crore in Q2 September 2009 over Q2 September 2008.
UltraTech said the performance was affected on a sequential basis due to lower demand in Southern India. The net profit dropped 39.94% to Rs 250.90 crore in Q2 September 2009 over Q1 June 2009.
The company said the cement demand may grow 9% in the year ending March 2010 on the back of government's initiative to boost rural development, infrastructure and housing. It, however, said new capacities which at various stages of implementation will result in pressure on margins.
The company said its focus on higher volume growth, captive power generation and capital productivity will help offset the impact of lower prices on margins.
Among other cement stocks, ACC, Grasim Industries and Ambuja Cements, fell by between 0.31% to 2.92%.
India's largest engineering and construction firm by sales Larsen & Toubro rose 0.19%. The company on Wednesday announced bagging orders worth Rs 966 crore.
India's largest power maker by sales Bharat Heavy Electricals rose 0.9% after the government on Thursday ruled out any immediate plan to disinvest its stake in the power equipment maker. The government owns 67% stake in Bhel.
Among other capital goods stocks, ABB, Thermax, Praj Industries rose by between 0.23% to 1.57%.
Construction shares rose as higher government spending on infrastructure sector in the Union Budget 2009-2010 to provide a stimulus to the economy, may result in increase order flow for construction. Gayatri Proje, Jaiprakash Associates, Nagarjuna Construction Company, Valecha Engineering rose by between 0.17% to 3.41%.
The government has set a target of spending $20 billion a year on road construction.
India's second largest mobile services provider by sales Reliance Communications (RCom) rose 2.09% after Anil Ambani chairman of RCom on Thursday alleged there was a 'vicious and malafide' campaign against his telecom company Reliance Communications by a 'known rival group' and dubbed the special audit report, which claimed that RCom was mis-stating its revenues as 'biased and prejudiced'. But the auditor, Parekh & Co defended its work and also denied a claim by Mr Ambani that it had not sought feedback from RCom.
IT stocks reversed early gains on a firm rupee against dollar. IT bellwether Infosys Technologies fell 1.16% as its ADR fell 0.9% on Thursday. Infosys raised its earnings and revenue guidance in both dollar and rupee terms for the year ending March 2010 (FY 2010) at the time of announcing Q2 September 2009 results before trading hour on Friday, 9 October 2009.
Infosys, however, said strengthening rupee is a big concern for its earnings. The rupee is hovering near its highest level in more than a year. 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 fell 0.3%. Its ADR rose 0.11% on Thursday.
But, India's largest software services exporter TCS rose 2.84% ahead of its Q2 result today. A total of eleven brokerages expect a between 6.8% fall to a 4.9% growth in TCS' consolidated net profit as per US accounting standards at between Rs 1416.30 crore to Rs 1595.40 crore in Q2 September 2009 over Q1 June 2009. Their expectations peg a between 0.4% to 3.8% growth in revenue at between Rs 7237.70 crore to Rs 7478.40 crore in Q2 September 2009 over Q1 June 2009.
Cals Refineries clocked highest volume of 3.52 crore shares on BSE. Unitech (1.28 crore shares), Sanraa Media (.06 crore shares), Ispat Industries (0.92 crore shares) and Euro Multivision (0.81 crore shares) were other volume toppers in that order.
State Bank of India clocked highest turnover of Rs 381.78 crore on BSE. DLF (Rs 238.01 crore), Sesa Goa (Rs 204.56 crore), Reliance Industries (Rs 184.04 crore) and ICICI Bank (Rs 142.54 crore) were other turnover toppers in that order.
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