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Wednesday, October 21, 2009
BSE Bulk Deals to Watch - Oct 21 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
21/10/2009 513349 AJMERA OPG SECURITIES P LTD B 249006 271.03
21/10/2009 513349 AJMERA OPG SECURITIES P LTD S 249006 271.54
21/10/2009 531519 ANKUSH FINST NARESH GUPTA S 35109 4.47
21/10/2009 531519 ANKUSH FINST ANKIT PANKAJ BHAISHAH S 35603 4.15
21/10/2009 530355 ASIAN OILFIE YOGESH SHASHIKUMAR SAVADEKAR B 170736 71.43
21/10/2009 530355 ASIAN OILFIE HITESH SHASHIKANT JHAVERI B 90000 71.85
21/10/2009 500335 BIRLA CORPOR LIFECYCLE INFOTECH PVT LTD B 410466 301.27
21/10/2009 590081 BRAHMANAND ABHIYAN MERCHANT PVT LTD S 100000 8.55
21/10/2009 531682 CAT TECHNOL VINOD AMRATLAL NAAI B 171414 16.56
21/10/2009 533026 CHEMCEL PANDYA YAMINIBEN M B 145001 11.24
21/10/2009 533026 CHEMCEL LAXMAN DHIRUBHAI PARMAR B 135147 11.07
21/10/2009 533026 CHEMCEL SUNIL SEKSARIA HUF S 368060 11.77
21/10/2009 533026 CHEMCEL PANDYA YAMINIBEN M S 145001 11.40
21/10/2009 533026 CHEMCEL LAXMAN DHIRUBHAI PARMAR S 135147 11.39
21/10/2009 533026 CHEMCEL ANITA SUNIL SEKSARIA S 184030 11.22
21/10/2009 532363 COMP-U-LEARN ARCADIA SHARE & STOCK BROKERS PVT. LTD B 71505 31.54
21/10/2009 532363 COMP-U-LEARN ARCADIA SHARE & STOCK BROKERS PVT. LTD S 93315 31.07
21/10/2009 533055 EDSERV SOFT HITESH SHASHIKANT JHAVERI B 147511 245.54
21/10/2009 533055 EDSERV SOFT BP FINTRADE PRIVATE LIMITED B 66024 244.85
21/10/2009 533055 EDSERV SOFT HITESH SHASHIKANT JHAVERI S 147542 244.05
21/10/2009 522074 ELGI EQUIP RAMNISH KAPOOR B 421275 86.54
21/10/2009 532022 FILAT FASH MUKESH DHIRAJLAL MAHETALIA B 57106 24.72
21/10/2009 532022 FILAT FASH PARI STOCK TRADING PVT LTD B 44702 24.83
21/10/2009 532022 FILAT FASH PATHIK DESAI S 49500 24.55
21/10/2009 532022 FILAT FASH MUKESH DHIRAJLAL MAHETALIA S 57106 24.74
21/10/2009 530945 GANGOTRI I&S JAMSHED RUSTOMJI VAKHARIA S 44132 27.85
21/10/2009 508918 GREYCELLS EN PRIME INDIA OPPORTUNITY LTD B 215717 64.69
21/10/2009 508918 GREYCELLS EN SAJEEV EKOPPARA THOMAS S 213818 64.70
21/10/2009 513337 GUJ.TOOLROOM BLUEBERRY TRADING COMPANY PRIVATE LIMITED B 60600 10.25
21/10/2009 513337 GUJ.TOOLROOM DEVANG JAYANTKUMAR GADOYA S 32300 10.25
21/10/2009 513337 GUJ.TOOLROOM NEVIL MUKESHBHAI PANCHAL S 32700 10.25
21/10/2009 500201 INDIA GLYCOL MANJULA JAYNTILAL JAIN B 142565 137.85
21/10/2009 532326 INTENS TECH PRIME INDIA OPPORTUNITY LTD B 252000 13.90
21/10/2009 532326 INTENS TECH SAJEEV EKOPPARA THOMAS S 252000 13.90
21/10/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD S 144258 2.77
21/10/2009 532081 K SERA SERA S V ENTERPRISES B 530797 21.74
21/10/2009 511131 KAMAN HSG SETU SECURITIES PVT LTD B 73014 63.40
21/10/2009 511131 KAMAN HSG HITESH SHASHIKANT JHAVERI B 72858 63.39
21/10/2009 511131 KAMAN HSG SETU SECURITIES PVT LTD S 73014 63.39
21/10/2009 530255 KAY POW PAP B.S.KHANDELWAL S 159656 6.61
21/10/2009 532796 LUMAX AUTO ARUNA GODIKA S 58450 55.66
21/10/2009 532907 MAYTAS INFRA HITESH SHASHIKANT JHAVERI B 487063 150.85
21/10/2009 532907 MAYTAS INFRA HITESH SHASHIKANT JHAVERI S 487021 150.85
21/10/2009 526263 MOLDTEK TECH CONQUEST SECURITIES PRIVATE LTD B 18900 88.67
21/10/2009 526263 MOLDTEK TECH MALLINATH MADINENI S 20300 88.99
21/10/2009 532892 MOTILALOFS PASSIONATE INVESTMENT MANAGEMENT PRIVATE LIMITED- (PROMOTER) B 1000000 172.25
21/10/2009 532892 MOTILALOFS MR. MOTILAL OSWAL -(PROMOTER) S 1000000 172.25
21/10/2009 532541 NIIT TECHNO OPG SECURITIES P LTD B 302918 145.40
21/10/2009 532541 NIIT TECHNO OPG SECURITIES P LTD S 302918 145.61
21/10/2009 531496 OMKAR OVERSE KANCHAN VIJAYKUMAR THAKKAR B 26700 74.98
21/10/2009 531496 OMKAR OVERSE AMBIKA SHYAM SHUKLA B 44206 73.15
21/10/2009 531496 OMKAR OVERSE ANJANA RAMESHCHANDRA BIRLA B 32500 74.50
21/10/2009 531496 OMKAR OVERSE ANJANA RAMESHCHANDRA BIRLA S 32500 74.40
21/10/2009 531496 OMKAR OVERSE SUMIT CHAMPALAL AGARWAL S 50000 73.15
21/10/2009 524570 PODDAR PIGME SURYA PRAKASH HEDA S 62800 37.30
21/10/2009 532254 POLARIS LAB OPG SECURITIES P LTD B 718369 169.26
21/10/2009 532254 POLARIS LAB OPG SECURITIES P LTD S 718369 169.38
21/10/2009 532387 PRITISHN COM MANJULA JAYNTILAL JAIN S 83665 36.83
21/10/2009 531273 RADHE DEVELO RAVI VASANTBHAI PAWAR B 1276000 9.29
21/10/2009 531646 RFL INTERNAT SHAILESH RAMAKANT BANDEKAR B 30000 1.10
21/10/2009 531646 RFL INTERNAT VIPUL BHARATBHAI SHAH S 72484 1.10
21/10/2009 533083 RISHABHDEV ARIHANT SEC & INVESTMENT B 111698 19.56
21/10/2009 533083 RISHABHDEV ARIHANT SEC & INVESTMENT S 111698 19.50
21/10/2009 531901 SAARC NET PRAJAWATI SANJAY GANDHI B 415700 2.25
21/10/2009 506172 SAMPADA CHEM SKYLAND SECURITIES PVT LTD S 31400 33.82
21/10/2009 526843 SEAX GLOBAL ANILBHAI RAMBHAI BHARWAD B 82000 60.00
21/10/2009 590047 SUNDARAMMUL PUSHPA RAMESH SHAH B 490237 26.24
21/10/2009 507410 WALCHAND IN OPG SECURITIES P LTD B 243202 236.25
21/10/2009 507410 WALCHAND IN OPG SECURITIES P LTD S 243202 236.29
21/10/2009 590013 XPRO INDIA-PMS DB (INTL) STOCK BROKERS LTD B 68118 34.83
21/10/2009 590013 XPRO INDIA-PMS DB (INTL) STOCK BROKERS LTD S 68118 34.59
NSE Bulk Deals to Watch - Oct 21 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
21-OCT-2009,COREPROTEC,Core Projects and Technol,MANISH VRAJLAL SARVAIYA,BUY,471677,209.05,-
21-OCT-2009,EDSERV,Edserv Softsystems Limite,SETU SECURITIES LTD,BUY,84762,244.12,-
21-OCT-2009,EDSERV,Edserv Softsystems Limite,SVS SECURITIES PVT. LTD.,BUY,67640,245.04,-
21-OCT-2009,HANUNG,Hanung Toys and Textiles,SARIKA GARG,BUY,161031,117.57,-
21-OCT-2009,ICSA,ICSA (India) Limited,FIDELITY INVESTMENT TRUST FIDELITY AGGRESSIVE INTERNAT FUND,BUY,247228,219.73,-
21-OCT-2009,INDIAGLYCO,India Glycols Ltd,MANJULA JAYANTILAL JAIN,BUY,166520,137.11,-
21-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,11235690,24.13,-
21-OCT-2009,NUTEK,Nu Tek India Limited,SUBRAMANIAN LAXMINARAYANAN,BUY,87999,100.00,-
21-OCT-2009,PNC,Pritish Nandy Comm. Ltd.,TRANSGLOBAL SECURITIES LTD.,BUY,73387,37.19,-
21-OCT-2009,PVR,PVR Limited,RELIANCE CAPITAL TRUSTEE CO LTD A/C-RELIANC EQUITY OPPR FUND,BUY,700000,135.00,-
21-OCT-2009,PVR,PVR Limited,RELIANCE CAPITAL TRUSTEE CO LTD A/C-RELIANC MEDIA & ENT FUND,BUY,150000,135.00,-
21-OCT-2009,XPROINDIA,Xpro India Limited,DB (INTERNATIONAL) STOCK BROKERS LTD.,BUY,105364,34.71,-
21-OCT-2009,COREPROTEC,Core Projects and Technol,MANISH VRAJLAL SARVAIYA,SELL,471677,208.74,-
21-OCT-2009,CRANESSOFT,Cranes Software Internati,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,1715779,38.83,-
21-OCT-2009,EDSERV,Edserv Softsystems Limite,SETU SECURITIES LTD,SELL,96786,242.64,-
21-OCT-2009,EDSERV,Edserv Softsystems Limite,SVS SECURITIES PVT. LTD.,SELL,76650,244.82,-
21-OCT-2009,INDIAGLYCO,India Glycols Ltd,MANJULA JAYANTILAL JAIN,SELL,49073,139.16,-
21-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,11278717,24.11,-
21-OCT-2009,NUTEK,Nu Tek India Limited,BALYASNY SI LIMITED,SELL,140000,100.00,-
21-OCT-2009,PNC,Pritish Nandy Comm. Ltd.,MANJULA JAYANTILAL JAIN,SELL,97091,36.92,-
21-OCT-2009,PNC,Pritish Nandy Comm. Ltd.,TRANSGLOBAL SECURITIES LTD.,SELL,73387,37.20,-
21-OCT-2009,PVR,PVR Limited,T.ROWE PRICE INTERNATIONAL A/C NEW ASIA FUND - FII,SELL,350489,135.29,-
21-OCT-2009,PVR,PVR Limited,T.ROWE PRICE INTERNATIONAL A/C NEW ASIA FUND - GDR,SELL,564700,135.29,-
21-OCT-2009,ROLTA,Rolta India Ltd.,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,1460000,196.59,-
21-OCT-2009,SASKEN,Sasken Commu Techno Ltd,WEXFORD SPECTRUM INVESTORS LLC,SELL,392532,155.36,-
21-OCT-2009,WWIL,Wire and Wireless (India),SARAVANA SECURITIES D.SATHYAMOORTHI,SELL,3000000,20.35,-
21-OCT-2009,XPROINDIA,Xpro India Limited,DB (INTERNATIONAL) STOCK BROKERS LTD.,SELL,105364,34.92,-
Post Session Commentary - Oct 21 2009
Indian market closed on negative note following weak cues from the global market. BSE Sensex falls below 17,000 in late trade but managed hold the level and finally ended below 17,050 level along with NSE Nifty closed below 5,100 level. Negative closing of Asian stocks and the lower trading in European markets hit the sentiments. Besides, weak US index futures also took beating on the bourses. Meanwhile, market slipped sharply during final trading hours backed by huge selling pressure emerged across the board.
The market opened on flat note with negative bias tracking unfavorable cues from the markets all over the world. The US stock market closed lower on Tuesday amid strengthening in dollar and some weak economic data that missed expectations. The better earnings results from Apple, Texas Instruments, Caterpillar, Pfizer and UnitedHealth failed to keep the investors from booking profits. The Housing starts for September came in at an annualized rate of 590,000, which is below the rate of 610,000 units that was widely expected. Further, Indian benchmark indices continued to trade choppy, as the investors were hesitant to take any fresh long positions and were looking to exit stocks at current high levels. Stocks tried to improve during early afternoon trade but the recovery was short lived and market again reported fall. During final trading hours, market slipped piercingly due to huge sell off, as investors were worried on negative trading in European markets. From the sectoral front, most of the selling was seen in Bank, Auto, FMCG, Metal and Pharma stocks. However, IT and Teck stocks were able to gain favour from the market.
Among the Sensex pack 24 stocks ended in red territory and 6 in green territory. The market breadth indicating the overall health of the market remained negative as 1564 stocks closed in red while 1178 stocks closed in green and 93 stocks remained unchanged in BSE.
The BSE Sensex lower by 213.84 points or (1.24%) at 17,009.19 and NSE Nifty ended down by 50.85 points or (0.99%) at 5,063.60. BSE Small Caps closed with gains of 317.52 points at 7,800.39 and BSE Mid Caps closed with losses of 71.49 points at 6,854. The BSE Sensex touched intraday high of 17,248.69 and intraday low of 16,997.86.
Losers from the BSE Sensex pack are Tata Steel (3.96%), JP Associates (3.56%), SBI (3.24%), HDFC (3.07%), Herohonda Motors (2.90%), Tata Motors (2.86%), ITC Ltd (2.71%), Grasim Industries (2.67%), Maruti Suzuki (2.6%), ONGC Ltd (2.17%), HUL (2.16%), M&M Ltd (1.89%), HDFC Bank (1.67%), ICICI Bank (1.62%), ACC Ltd (1.49%) and Sterlite Industries (1.43%).
Gainers from the BSE Sensex pack are TCS Ltd (1.94%), Tata Power (1.57%), Bharti Airtel (1.22%), DLF Ltd (0.77%), Wipro Ltd (0.41%) and NTPC Ltd (0.07%).
Shortly, the Benchmark Prime Lending Rate will be replaced with a base rate. The plan will come into effect once the Reserve Bank of India Working Group''s report on BPLR is executed. Besides, the rate will take in all cost elements, which can be identified and are common across borrowers. The Annual Policy 2009-10 had announced the creation of the group to review the BPLR system and suggest changes to make credit pricing more transparent.
On the global markets front, the Asian markets that opened before the Indian market, ended lower. Shanghai Composite, Hang Seng, Nikkei 225, Singapore''s Straits Times and Seoul Composite ended down by 13.87, 66.85, 3.45, 18.54 and 5.29 points at 3,070.59, 22,318.11, 10,333.39, 2,692.55 and 1,653.86 respectively.
European markets, which opened after the Indian market, are trading down. In Paris the CAC 40 is lower by 35.27 points at 3,836.18, in Frankfurt DAX index is trading down by 45.84 points at 5,765.93 and in London FTSE 100 is lower by 27.53 points at 5,215.87.
The BSE Auto index lost (2.36%) or 157.03 points 6,496.46, as Amtek Auto (6.17%), MRF Ltd (3.34%), Herohonda Motors (2.90%), Tata Motors (2.86%) and Maruti Suzuki (2.60%) ended in red .
The BSE FMCG index closed down by (2.06%) or 57.15 points at 2,715.97. Losers are Dabur India (3.10%), ITC Ltd (2.71%), United Spr (2.29%), HUL (2.16%) and Tata Tea Ltd (1.35%).
The BSE Bank index dropped by (2%) or 210.03 points at 10,309.98. Main losers are Bank of Baroda (4.46%), Yes Bank (3.82%), IDBI Bank (3.38%), Indian Overseas Bank (3.31%), and Bank of India (2.99%).
The Metal index ended down by (1.69%) or 269.44 points at 15,642, as LME, a gauge of six metals traded on the London Metal Exchange, slides 0.96% overnights. Losers are Sesa Goa Ltd (7.91%), Tata Steel (3.96%), Welspan Guajrat SR (2.26%), Steel Authority (2.13%) and Ispat Industries (2.08%).
The BSE Pharma index ended lower by (1.38%) or 61.08 at 4,377.28. Main losers are Divi’s Lab (5.37%), Dishman Pharma (4.82%), Aurobindo Pharma (4.46%), Piramal Health (4.24%) and Lupin Ltd (2.65%).
The BSE Realty index increased by (0.26%) or 12.37 points at 4,741.82 on recent reports that demand for residential projects in major cities is picking up on lower home loan rates. Gainers are Ansal Infra (3.14%), Housing Dev (1.65%), Indiabull Real (0.77%) and DLF Ltd (0.71%).
AREVA T&D India closed lower by 1.78%. The company has signed an EPC" alliance agreement worth approximately Rs.9000 MINR with Maharashtra State Electricity Transmission Co. Ltd (MSETCL), for the turnkey design and construction of 220 kV and 132 kV substations.
HCL Technologies Ltd. ended higher by 3.95%. The company announced today a collaboration with Microsoft to provide a highly cost-effective and user-friendly retail banking solution to help banks in the Asia Pacific (APAC) region.
Tech Mahindra Ltd lost 0.05% despite net profit spurted 56.37% to Rs. 210.64 crore on 4.67% rise in net sales to Rs. 1,109.84 crore in Q2 September 2009 over Q1 June 2009.
Hindustan Construction Company slipped 4.02% despite the company bagged a water supply project worth Rs. 167.67 crore from Gujarat Water Infrastructure, a Gujarat state government undertaking.
Sterlite Technologies Ltd gained 2.06% as the company has emerged as the lowest bidder for the country’s first private power transmission project.
Ajanta Pharma Ltd zoomed 9.99% after the company said its board will meet on 29 Oct’09 to consider buyback of its own equity shares.
Bank of India Ltd slipped 2.99% after the Reserve Bank of India, barred further buying in the state-run bank’s shares by the foreign institutional investors.
Tata Motors lost 2.86%. The company has entered into an understanding with the Andhra Bank for financing its range of commercial vehicles to provide an added facility of finance to its customers.
Down three days in trot
It was a day of red for the global markets and the Indian stock market that had ignored the global cues over the last few weeks fell in line today. The disappointment started with the negative close of the US and European indices on Tuesday. Today ie on Wednesday the Asian indices followed the global trend and declined marginally. The Sensex was no different—it traded in the negative zone and remained range bound for the most part of the day. However, amid heavy selling in automobile, fast moving consumer goods (FMCG) and banking stocks, the Sensex slipped further and closed 1.24% below its yesterday’s closing. All the major Asian indices ended the day with the losses in the range of 0.03-1.06% each, with the Sensex losing the most—214 points or 124 basis points down . In today's trade, European indices (FTSE 100) opened higher, but was trading lower at 5201, down 42 points below its previous closing at the time of writing this report.
The Sensex that had opened at 17230, seven points higher, remained volatile and traded range-bound for the most part of the day. Alike the last few trading sessions, the bellwether lost steam during the closing trades and ended the day 1.24% lower on heavy selling in automobile, FMCG and banking space doubled with weak European opening. The Sensex during the day once breached the 17000 level to hit the low of 16998. However, it managed to close above the important level of 17000 at 17009, though down by 214 points. Nifty declined by 51 points to end the day at 5064 and followed the Singapore Nifty that ended the day losing 34 points. The market breadth was negative, as out of 2,835 stocks traded on the BSE, 1,564 stocks declined, whereas 1,178 stocks advanced. Ninety three stocks ended unchanged.
Among the sectoral indices only BSE Realty, BSE TECk and BSE IT closed in the green with marginal gains. The rest of the sectoral indices closed in red. Among them BSE Auto fell the most by 2.36%, followed by BSE FMCG that was down by 2.06% and BSE Bankex that declined by 2.00%. On the stocks’ front, Hindustan Copper jumped the most and surged by 9.99% to Rs255.50, followed by Jet Airways that rose by 8.04% to Rs434.25. While stocks like HCL Technologies, Marico, Gujarat NRE Coke and Adani Enterprises ended the day with gains of over 3% each. Among the losers, Sesa Goa fell the most by 7.91% to Rs319.45, followed by Balrampur Chini that fell by 7.07% to Rs 132.20, while stocks like Divi's Lab, Alstom Projects, Bank of Baroda, Indian Bank, Renuka Sugar, Piramal Healthcare, Thermax and Hindustan Construction declined by over 4% each.
On the turnover front, Over 1.19 crore shares of Ispat Industries changed hands on the BSE followed by Unitech (1.15 crore shares), GVK Power & Infrastructure (0.75 crore shares), Reliance Natural Resources (0.53 crore shares) and DLF (0.50 crore shares).
Events outcome
Chambal Fertilisers sales slides by 45%
Yes Bank's PAT jumps by 75.6%
Bank stocks lead 1.2% Sensex slide
The key benchmark indices slumped on weak global stocks and lower US index futures. Index heavyweight Reliance Industries (RIL) fell in volatile trade as the hearing on a gas dispute with Reliance Natural Resources (RNRL) continued in the Supreme Court for the second day in a row today, 21 October 2009. RIL was primarily responsible for volatility in the Sensex.
Bank stocks fell on concern a proposed new interest rate system will intensify competition among lenders. Metal, FMCG and auto stocks also edged lower. The market breadth was negative in contrast to a strong breath in early trade.
The BSE 30-share Sensex fell 213.84 points or 1.24%, off close to 240 points from the day's high and up close to 15 points from the day's low. The Sensex fell below psychological 17,000 mark level for a short while in late trade before regaining that level. A section of the market is concerned that a glut in share sales by Indian firms may suck liquidity from the secondary market.
Intraday volatility was high. The market drifted lower in choppy early trade on subdued Asian stocks and lower US index futures. It soon bounced back in morning trade and moved into green from red. But the intraday recovered proved short lived as the market once again slipped into the red. The market cut losses after hitting a fresh intraday day low in early afternoon trade. The Sensex hit a fresh intraday low in mid-afternoon trade. It soon trimmed losses. The market slumped in late trade on weak global stocks.
The Prime Minister's economic advisory council today, 21 October 2009, said the economy is likely to grow 6.5% in 2009/10 with inflation at around 6 % by the end of March 2010. The panel also forecast a consolidated fiscal deficit, which includes shortfalls at the state level, of 10.09 % of GDP in the current fiscal year, compared with 8.6% last year, and the influential panel urged a return to fiscal consolidation.
The panel of advisers headed by former central bank governor C. Rangarajan said growth in the current fiscal year would be at least 6.25% and could reach 6.75%. The panel said the recently poor summer monsoon would erode farm output in the current fiscal year by 2% although 8.2% growth in both the industrial and services sectors would help offset that. Rangarajan said growth in the fiscal year that ends in March 2011 would accelerate to 7 to 8%.
Prime Minister Manmohan Singh said on Tuesday the Indian economy will expand at 6-6.5% in the year to March 2010, despite uncertainty whether signs of a global recovery will lead to a return to a sustained growth path. Singh also said the drought in the country, the worst in decades, had further hit the poorest sections of its people.
Govinda Rao, a member of the Prime Minister's Economic Advisory Council today, 21 October 2009, said the government may collect Rs 4 lakh crore as direct tax for the current fiscal year ending March 2010. There is an unexpected increase in recent direct tax collections, he said.
According to a survey by Hewitt Associates, base salary levels in India are poised to jump nearly 10% in 2010 as the Asian region continues to rebound from global recession. Salaries in Indonesia and China will also surge, by 8.7% and 6.7% respectively, according to the survey. The survey covered more than 2,000 local and joint-venture companies in the Asia-Pacific region.
Rangarajan said today, 21 October 2009, the central bank's accommodative monetary policy may continue until the end of March 2010, with the need for tightening once inflation picks up.
Finance secretary Ashok Chawla said on Tuesday the Reserve Bank of India (RBI) would hopefully continue its current easy monetary stance when it reviews policy later this month as it was justified for the present economic scenario. The RBI governor D Subbarao is scheduled to meet the Prime Minister and finance ministry officials on 23 October 2009 to review the economic situation ahead of the policy.
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 RBI pumped in massive liquidity in the banking system in the past one year or so to help revive the domestic economy in the aftermath of the global financial crisis. While as exit from the loose monetary policy is imminent, speculation on the bourses is the timing of the exit policy. The RBI is expected to keep its benchmark lending and borrowing rates on hold at a quarterly monetary policy review on 27 October 2009.
The supply of paper by Indian firms appear limitless, raising concerns that additional share sales will suck liquidity from the secondary equity market. As per reports, Indian firms have garnered about $9 billion (Rs 32,400 crore at the current exchange rates) through sale of shares and convertible bonds to institutional buyers since April 2009. Indian companies are taking advantage of a surge in liquidity to recapitalize and fund capital expenditure after being starved of cash last year.
Most of these companies - from industries ranging from liquor and spirits to infotech - issued equity shares to a select group of investors by way of qualified institutional placement or QIP. If the enabling resolutions passed by the companies are any indication, Indian firms are gearing up to raise $15 billion (Rs 69,427 crore) in the next six months. The list includes Hindalco (Rs 2,900 crore), JSW Steel ($1 billion), India Cements ($100 million), Essar Oil ($2 billion), Tata Steel (Rs 5,000 crore), Jet Airways ($ 400 million) and Bharat Forge ($150 million).
Unlisted Reliance Infratel announced on 22 September 2009 its intention to raise Rs 5,000 crore from the primary market. Divestment of state-run firms by the government may also increase the supply of paper in the market.
The government on Monday approved stake sales in state-run power producer NTPC and another unlisted power firm Satluj Jal Vidyut Nigam which reflects the country's resolve to speed up reforms and raise more resources for social schemes. On Monday, Trade Minister Anand Sharma said the Union Cabinet had approved a 5% stake sale in NTPC, and 10% in, an unlisted power producer. On Friday, 16 October 2009, Prime Minister Manmohan Singh said many state-run firms are eager to list their shares in the stock market as it would help unlock their value.
The government has approved a follow-on public offering of 20% of state run Steel Authority of India, the steel minister said on Wednesday, 21 October 2009. The Government of India owns nearly 86% of Sail.
Stock and sector-specific activity may dominate trade on the bourses 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 pulled back from early gains in a choppy session on Wednesday, with Peugeot, Deutsche Bank and PPR Group all declining after updating on third-quarter progress. The key benchmark indices in France, Germany and UK were down by between 1.22% to 1.63%.
The Bank of England's Monetary Policy Committee voted 9-0 in favor of the decision to leave its asset purchase plan unchanged at 175 billion pounds and to maintain its key lending rate at a historic low of 0.5%, according to minutes of the 7-8 October 2009 meeting released Wednesday.
Asian stocks declined today led by materials and technology companies, on declines in commodity prices and worse-than-forecast US housing starts. Key benchmark indices in Hong Kong, Japan, South Korea, China, Singapore and Taiwan fell by between 0.3% to 0.67%.
Bank of Japan Deputy Governor Kiyohiko Nishimura on Wednesday warned that the downside risks facing the country's economy remain high, meaning the central bank must stick to its easy monetary policy for now. Nishimura said the biggest risk facing the Japanese economy remained the world economic outlook. The bank's main scenario is for the world economy to return to moderate growth, but Nishimura also outlined some of the risks to that scenario.
China banking regulators warned Wednesday about rising risks in the sector and urged banks to keep their lending within reasonable levels in the current quarter, according to a media report Wednesday. The China Banking Regulatory Commission (CBRC), which expressed the view in comments made during a video-and-teleconference call with banks across the country Wednesday, did not spell out what it viewed as an appropriate lending level.
In a later statement that was posted on its Website, the CBRC also urged banks to closely monitor possible repercussions on market liquidity caused by global capital flows, macroeconomic trend changes, or policy adjustment.
US stock futures on Wednesday pointed to a second straight day of declines, ahead of a slate of earnings from Wells Fargo and Morgan Stanley and an assessment of the economy from the Federal Reserve. Trading in US index futures indicated Dow could fall 56 points at the opening bell on Wednesday, 21 October 2009.
US markets retreated on Tuesday on poor economic data even though several earnings reports beat expectations. The Dow Jones Industrial Average fell 50.71 points, or 0.5%, to 10,041.48. The S&P 500 index fell 6.85 points, or 0.6%, to 1,091.06. The Nasdaq Composite index was down 12.85 points, or 0.6%, to 2,163.47.
In the day's economic news, housing starts were the bigger disappointment gaining 0.5% last month, less than the 2.8% increase expected. In earnings from the US, Yahoo reported a profit that was higher than last year and went past expectations.
The Obama administration will shutter programs at the heart of a $700 billion financial bailout but remains focused on supporting a fledgling economic recovery, Treasury Secretary Timothy Geithner said in an interview to a news agency on Tuesday. The administration will focus on "more-targeted programs directed at what are the principal areas where there's still weakness in access to credit," he said, specifically citing housing and small businesses.
San Francisco Federal Reserve President Janet Yellen said Tuesday that the Fed is not likely to tighten monetary conditions during the next few months and still has not decided on which tool to use first when it decides it's time to drain extra liquidity out of the system.
Hedge funds attracted $1.1 billion from investors in the third quarter ended September 2009, ending a one-year streak of net withdrawals, according to Hedge Fund Research Inc. More than two-thirds of hedge funds experienced inflows in the quarter. Funds with assets of more than $5 billion experienced outflows while those with less than $500 million attracted money in the quarter.
Meanwhile, hedge fund manager Galleon Group's founder Raj Rajaratnam was arrested Friday, 16 October 2009, on charges of insider trading. Galleon Hedge Fund, which currently has assets under management of about $3.7 billion, has a 7% stake in broking firm Edelweiss Capital, 4.6% stake in construction firm Shriram EPC and 0.3% stake in Pipavav Shipyard.
Rajaratnam's lawyer has insisted his client isn't guilty of the charges. But investors in the group's funds could follow the lead of Rochdale Investment Management, which said Monday it was liquidating its stake in the Galleon Diversified fund. If enough investors left Galleon, managers at the firm could be forced to sell shares of companies it owns in order to meet those redemptions. Galleon could also seek to prevent investors from redeeming money immediately.
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 BSE 30-share Sensex fell 213.84 points or 1.24% to 17,009.17. The Sensex rose 25.68 points at the day's high of 17,248.69 in early trade. The barometer index fell 225.15 points at the day's low of 16,997.86 in late trade.
The S&P CNX Nifty fell 50.85 points or 0.99% to 5,063.60. Nifty October 2009 futures were at 5,068.20, at a premium of 4.60 points as compared to the spot closing of 5,063.60. Turnover in NSE's futures & options (F&O) segment was Rs 67,937 crore, lower than Rs 74,134.92 crore on Tuesday, 20 October 2009.
BSE clocked a turnover of Rs 5976 crore, higher than Rs 5351.43 crore on Tuesday, 20 October 2009.
The market breadth, indicating the overall health of the market turned negative in contrast to a strong breadth in early trade. On BSE, 1173 shares advanced as compared with 1555 that declined. A total of 95 shares remained unchanged.
Among the 30-member Sensex pack, 24 fell while the rest rose.
With foreign funds making heavy purchases, the Sensex is up 7,361.86 points or 76.3% in calendar year 2009 as on 21 October 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8848.77 points or 108.43% as on 21 October 2009. FII inflow in the calendar year 2009 totaled Rs 68,476.30 crore (till 20 October 2009).
Coming back to today's trade, the BSE Mid-Cap index fell 1.07% and outperformed the Sensex. The BSE Small-Cap index rose 0.23% and outperformed the Sensex.
Sectoral indices on BSE displayed mixed trend. The BSE Auto index (down 2.36%), the BSE FMCG index (down 2.06%), the BSE Bankex (down 2%), the BSE Metal index (down 1.69%), the BSE Healthcare index (down 1.38%), underperformed the Sensex.
The BSE Realty index (up 0.26%), the BSE Teck index (up 0.04%), the BSE IT index (up 0.03%), the BSE Power index (down 0.42%), the BSE Capital Goods index (down 0.51%), the BSE Oil & Gas index (down 0.58%), the BSE PSU index (down 1.17%), the BSE Consumer Durables index (down 1.22%), outperformed the Sensex.
Index heavyweight Reliance Industries was flat at Rs 2182.45. The stock hit a high of Rs 2209 and a low of Rs 2169.95. Reliance Industries (RIL) counsel Harish Salve said Wednesday he will present his arguments in the gas dispute case with Reliance Natural Resources (RNRL) by 29 October 2009. The case is being heard in Supreme Court by a three-judge bench, headed by the Chief Justice of India, K.G. Balakrishnan.
There has to be some process to reach a suitable arrangement, the court said, suggesting arbitration, third-party intervention, mutual settlement and legal resolution as options.
Salve on Tuesday argued in the Supreme Court that the memorandum of understanding (MoU) signed between the members of the Ambani family on 18 June 2005, was not binding on the company, as it had never been shown to its board of directors. But even if it was, RIL would be unable to supply 28 million standard cubic metres per day (mmscmd) of gas to RNRL at $2.34 per million British thermal unit (mmBtu) as it contradicted the government's gas pricing and utilisation policy, Mr Salve said. The proceedings, which lasted for over two hours, were marked by interjections from the three-judge bench.
The apex court will have to rule on a number of issues. Apart from the main dispute, as to whether a valid contract exists and what is the correct price, it will have to decide if the government can intervene in the case.
Meanwhile, the government on Tuesday formed an Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee to allocate additional gas from the RIL's field to new users. Besides Mukherjee and Deora, the EGoM would include Power Minister Sushil Kumar Shinde, Fertilizer Minister M K Alagiri, Law Minister Veerappa Moily and Planning Commission Deputy Chairman Montek Singh Ahluwalia.
PSU OMCs were mixed after Govinda Rao, a member of the Prime Minister's Economic Advisory Council, there is no need to raise fuel prices, if global oil prices remain in the range of $70 to $75 a barrel. BPCL, HPCL fell by between 1.14% to 2.94%. But, Indian Oil Corporation rose 2.04%.
Rao said the government expects international crude oil prices to hover around $70 to $75 per barrel. If prices go beyond that consistently, then the numbers will have to change, Rao said. Rise in crude oil prices normally results in under recoveries for PSU OMCs on domestic sale of petrol, diesel, kerosene and LPG at controlled prices.
Crude oil prices fell on Wednesday as investors took profits after a recent rally sent the market above 80 dollars for the first time in one year. New York's main contract, light sweet crude for December delivery, fell 1.04 dollars to 78.08 dollars a barrel. The November 2009 contract, which had expired Tuesday, briefly touched 80.05 dollars -- the highest level for New York crude since 14 October 2008.
Bank stocks fell after a Reserve Bank of India (RBI) panel on Tuesday proposed a transparent pricing structure for floating rate loans wherein benchmark rates get automatically revised on shrinking cost of funds. India's largest private sector bank by net profit ICICI Bank fell 1.62% as its ADR fell 1.26% on Tuesday. The bank recently reduced auto loan rates by 50 basis points.
India's second largest private sector bank by net profit HDFC Bank fell 1.67% as its ADR rose fell 2.6% on Tuesday. 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 last week, were more or less in line with market expectations.
India's largest bank by branch network State Bank of India fell 3.24%. SBI has reportedly raised $750 million (around Rs 3500 crore) in the overseas market through five-year bonds as part of its medium-term note programme (MTN). SBI's $5 billion MTN programme was launched in 2004. It targets investors, including banks, insurance companies, hedge funds and private equities in the global market.
Among other PSU Stocks, Bank of Baroda and Punjab National Bank fell by between 0.68% to 4.46%.
Bank of India lost 2.99%, after the Reserve Bank of India barred further buying in the state-run bank's shares by foreign institutional investors without its prior permission.
The committee headed by RBI executive director Deepak Mohanty has suggested discontinuing the usage of a bank's prime lending rate (PLR) as the benchmark for variable rate loans. Instead, it wants banks to arrive at a base rate that reflects the cost of one-year deposits and price loans over this base rate.
The panel has also proposed a ceiling on the extent of loans that can be granted below the benchmark rate. Most banks typically pass on the benefit of falling rates only to fresh customers. RBI governor D Subbarao has repeatedly said though the central bank has slashed its repo rate (at which it lends to banks) by 425 basis points in the last one year, prime lending rates of banks have fallen by only around 200 basis points.
Lenders currently offer loans at less than the benchmark prime lending rate to about 10 categories of borrowers, according to the central bank. Some of these loans are at rates that don't "make much commercial sense" for the banks, according to the report.
Meanwhile, the central bank may hike the ceiling on the portion of government securities that banks can park in held-to-maturity (HTM) category, possibly at a quarterly monetary policy review on 27 October 2009. 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.
India's largest dedicated housing finance firm HDFC fell 3.07%. HDFC, last week, announced its net profit rose 24.27% to Rs 663.94 crore in Q2 September 2009 over Q2 September 2008. The results beat market expectations.
India's largest engineering and construction firm by sales Larsen & Toubro was flat. Strong project execution is seen driving growth in L&T's top line and bottom line in Q2 September 2009. A total of five brokerages expect a between 19% to 42.3% growth in L&T's net profit at between 546.30 crore to Rs 654.70 crore in Q2 September 2009 over Q2 September 2008. L&T unveils Q2 September 2009 results on Thursday, 22 October 2009.
India's largest power maker by sales Bharat Heavy Electricals fell 0.98%. Strong project execution, fall in input costs and lower employee costs are seen driving growth in Bhel's top line and bottom line in Q2 September 2009. Metal prices were sharply on year on year basis which will help boost margins of the power equipment major. Further, Bhel had provided Rs 116 crore for wage hike provisions in Q2 September 2008 which had pulled down profit in that quarter. The margins will rise with no such provision in Q2 September 2009.
A total of seven brokerages expect a between 10.8% to 32.4% growth in Bhel's net profit at between Rs 681.50 crore to Rs 815.40 crore in Q2 September 2009 over Q2 September 2008. Their expectations peg a between 24.8% to 28% growth in revenue at between Rs 6667.70 crore to Rs 6838.60 crore in Q2 September 2009 over Q2 September 2008. Bhel unveils Q2 September 2009 results on Friday, 23 October 2009
Among other capital goods stocks, ABB, Praj Industries, BEML, Siemens, Thermax, fell by between 0.23% to 4.02%.
Auto stocks fell on profit taking. India's top small car maker by sales Maruti Suzuki India fell 2.6%. 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 fell 2.86%. Tata Motors said after market hours on Tuesday it has acquired full control of Spanish bus and coach manufacturer Hispano Carrocera by acquiring the remaining 79% stake in the firm. Tata Motors had a 21 % stake in the Spain-based company since 2005, it added.
Bajaj Auto fell 1.91%. 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 15 October 2009.
India's largest tractor maker by sales Mahindra & Mahindra fell 1.89%. 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 largest motor bike maker by sales Hero Honda Motors fell 2.9% ahead of its Q2 September 2009 result today. 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.
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, Tata Tea, Dabur India, fell by between 0.88% to 3.1%.
United Spirits lost 2.29%, on worries of equity dilution, after the company raised Rs 1615.60 crore through a share sale to institutional investors.
Metal stocks fell as LMEX, a gauge of six metals traded on the London Metal Exchange, fell 0.96% on Tuesday. Tata Steel, JSW Steel, Jindal Steel & Power fell by between 0.04% to 3.96%.
Steel Authority of India (Sail) fell 2.13% after the steel minister said the government has approved a follow-on public offering of 20%. The government holds 85.82% stake in Sail.
India's largest copper maker by sales Sterlite Industries fell 1.43%. The company, last week, 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.
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. Indiabulls Real Estate, Omaxe, Ansal Properties, DLF rose by between 0.61% to 3.14%.
India's largest thermal power generator by sales NTPC rose 0.1% extending gains for the second straight day after the Union Cabinet on Monday, 19 October 2009, approved a 5% stake sale in the firm by the government
Ultratech Cement fell 2.25% after the company issued a cautious outlook at the time of announcing Q2 results late last week. 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, Birla Corporation and Ambuja Cements, fell by between 0.66% to 2.67%.
Jaiprakash Associates fell 3.56% ahead of its Q2 September 2009 result today. Strong order book and higher cement realization are seen driving growth at construction and cement firm Jaiprakash Associates (JAL) in Q2 September 2009. A total of 6 brokerages expect a between a 4.7% fall to a 21.7% growth in JAL's net profit at between Rs 193.50 crore to Rs 247.20 crore in Q2 September 2009 over Q2 September 2008. Their expectations peg a between 64.4% to 83.6% growth in revenue at between 1944.80 crore to Rs 2170.80 crore in Q2 September 2009 over Q2 September 2008.
IT stocks rose after Yahoo Inc, the top US seller of online display ads, reported better-than-expected results on Tuesday. India's third largest software services exporter Wipro rose 0.41% even as its ADR fell 0.43% on Tuesday.
India's largest software services exporter TCS rose 1.94%. The company after market hours on 16 October 2009, reported stronger-than-expected Q2 September 2009 results. Consolidated net profit as per US accounting standards rose 6.81% to Rs 1623.90 crore on 3.16% growth in revenue to Rs 7435.10 crore in Q2 September 2009 over Q1 June 2009.
TCS has a good business pipeline and is pursuing 20 to 25 large outsourcing deals, chief executive N. Chandrasekaran said at the time of announcing Q2 results. The management is seeing signs of recovery but it believes it will be slow. The discretionary spent is still tight but there is spent seen in banking, finance services and insurance (BFSI), retail, utility and pharma verticals, TCS said at a conference call after the results. However, a continuous improvement in volumes cannot be expected, it said. The company is seeing stability in demand environment. The management expects to maintain margins at current levels provided there is no adverse rupee movement.
But, IT bellwether Infosys Technologies fell 0.92%. Its ADR rose 0.27% on Tuesday. 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 9 October 2009.
Infosys, however, said strengthening rupee is a big concern for its earnings. A stronger rupee negatively impacts operating margins of IT firms as the sector earns a lion's share of revenue from exports. The rupee is hovering near its highest level in more than a year.
Telecom stocks were mixed after finance secretary Ashok Chawla said on Tuesday the auctions for the 3G spectrum would take place by December this year. India's largest mobile services provider by market share Bharti Airtel rose 1.22%.
The Department of Telecommunications had earlier said that the auction would start from 7 December 2009, though there are apprehensions about the date since the defence forces are yet to vacate spectrum. The auction has already been postponed several times. With the availability of 3G spectrum, telecom companies are expected to offer a combined mobile and internet platforms.
India's second largest mobile services provider by sales Reliance Communications (RCom) fell 0.06%. Anil Ambani chairman of RCom on Thursday, 15 October 2009, 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.
Sugar stocks fell after government extended tax free white sugar imports till December 2010 to improve supplies to tide over a shortage. Balrampur Chini, Bajaj Hindustan, Shree Renuka Sugars, fell by between 4.32% to 7.07%.
Cals Refineries clocked highest volume of 3.05 crore shares on BSE. Ispat Industries (1.19 crore shares), Unitech (1.15 crore shares), GVK Power & Infrastructure (0.75 crore shares) and SpiceJet (0.69 crore shares) were among the other volume gainers in that order.
DLF clocked highest turnover of Rs 238.02 crore on BSE. Housing Development & Infrastructure (Rs 170.94 crore), State Bank of India (Rs 155.16 crore), Sesa Goa (Rs 135.86 crore) and Infosys (Rs 131.14 crore) were the other turnover toppers in that order.
Pre Session Commentary - Oct 21 2009
Today domestic markets are likely to open negative amid weak start in Asian Market and slide in US Market overnight. The trade would be choppy with negative bias but strong earning results from IT bewilders could push the bourses upward. One could expect selling pressure in Metals, Realty and Banking sphere in mid-trade. Today domestic market is likely to trade range bound with negative bias.
On Tuesday, the market closed lower on profit booking, erased most of its gains to end the volatile session on negative terrain. The market opened on pleasant note tracking firm cues from the global markets. The Asian markets were higher today and the US stock markets closed with gains on Monday on earnings optimism. Indian benchmark indices turned little volatile after start and slipped off from the early highs as traders booked profits at higher level. Stocks pared most of the gains after negative opening of European markets that contributed to the selling pressure. Market tried to recover during final trading, though was unable to sustain the momentum and slipped again to close in negative zone. Broad based selling was seen in majority of sectors Oil & Gas (1.70%), Consumer Durables (1.50%), Capital Goods (1.21%) and Power (0.69%). However, Realty (0.90%) and Metal (0.81%) stocks were in limelight, as witnessed most of the buying from these baskets. The Market breadth, indicating the overall strength of the market, was negative.
The BSE Sensex lower by 103 points or 0.59% at 17,223.01 and NSE Nifty ended down by 27.35 points or 0.53% at 5,114.35. BSE Mid Caps and Small Caps closed with gains of 3.93 and 11.75 points at 6,655.49 and 7,782.87 respectively. The BSE Sensex touched intraday high of 17,457.26 and intraday low of 17,185.04.
On Tuesday, the US stock market closed lower amid strengthening dollar and hard hit in basic material stocks and energy stocks, resulted a correction to commodity prices. The bourses started on positive side and extend the previous session’s gains but the tone was short lived as enthusiasm faded for the strong earnings of several widely held companies. Positive earnings surprises from Apple, Texas Instruments, Caterpillar, Pfizer and UnitedHealth couldn’t hold from slipping into negative terrain. On the economic side, the Producer Price Index for September made a blow month-over-month drop of 0.6%, while core producer prices made a surprise 0.1% slide. Housing starts for September came in at an annualized rate of 590,000, which is lower, the rate of 610,000 units that was much expected. US light crude oil futures for November delivery closed down 0.7 % at $79.09 per barrel, on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) ended with loss of 50.71 points at 10,041.48. NASDAQ index slipped 12.85 points to 2,163.47 and the S&P 500 (SPX) closed lower by 6.85 points at 1,091.06.
India ADR ended mixed yesterday. In the IT pack, Infosys was up 0.27%, Satyam was up 0.63%, while Wipro was down 0.42% and Patni was down 0.2%. In the telecom space, Tata Comm was down 0.96% but MTNL was up 3.42%. In the banking space, ICICI Bank was down 1.26% and HDFC Bank was down 2.60%. In the other space, Tata Motors slipped 0.33%, Sterlite was down 0.94% and Dr Reddys was down 1.43%.
The FIIs on Tuesday stood as net buyers in equity whereas net seller in debt. Gross equity purchased stood at Rs. 3,861.60 crore and gross debt purchased stood at Rs. 478.50 crore, while the gross equity sold stood at Rs. 2,664.90 crore and gross debt sold stood at Rs. 546.40 crore. Therefore, the net investment of equity and debt reported were Rs. 1,196.70 crore and Rs. (67.90) crore respectively.
On Tuesday, the partially convertible rupee ended at 46.11/12 per dollar, 0.39% stronger than previous closing at 46.29/30 per dollar. The Indian rupee ended off highs on importers'' dollar demand. Banks also bought dollars as local shares ended down. Meanwhile, weak dollar overseas kept sentiment firm for rupee.
On BSE, total number of shares traded were 48.44 crore and total turnover stood at Rs. 5,351.43 crore. On NSE, total number of shares traded were 83.72 crore and total turnover was Rs. 17,217.55 crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 41590860 shares, followed by Suzlon Energy with 16035525, SAIL with 13970184, Hindalco with 13940974 and DLF with 13136196 shares.
On NSE Future and Options, total number of contracts traded in index futures was 628722 with a total turnover of Rs. 15,651.67 crore. Along with this total number of contracts traded in stock futures were 523214 with a total turnover of Rs. 21,866.20 crore. Total numbers of contracts for index options were 1336336 with a total turnover of Rs. 34,317.58 crore and total numbers of contracts for stock options were 66397 and notional turnover was Rs. 2,299.48 crore.
Today, Nifty would have a support at 5,134 and resistance at 5,192 and BSE Sensex has support at 17,125 and resistance at 17,278.
Sensex may open lower
The major US indices that started the week on the positive note, closed on Tuesday with losses of close to 0.6% each, even the European markets (FTSE 100) closed lower by 0.72% or 38 points at 5243. While in today’s trade, the major Asian indices were trading marginally lower in the range of 0.27%-0.80% each. Even the Singapore Nifty was trading 2 points below its previous day’s settlement price and was trading in a range bound territory. Such performance by the global indices may result in Sensex opening lower to its previous close and with no major trigger in the hind sight, it may remain volatile and trade in a range bound territory through the day. Among the local indices, the Nifty could test the 5150- 5200 range on the upside while on the down side it could find support at 4920 and 4850. The Sensex is likely to get support at 16606 and may face resistance at 17770.
On Tuesday, the major US indices staged a weak performance owing to the strengthening of dollar and few disappointments on the Q2 corporate earnings front. However, the Dow managed to sustain 10000 levels and closed 50 points or 0.50% lower at 10041, while S&P 500 and Nasdaq lost 0.6% each.
Among the Indian ADRs trading on the US bourses, only Infosys, Satyam and MTNL ended the day in positive zone, wherein MTNL surged the most and rose by 3.42%. While amongst the losers, HDFC Bank fell the most with loses of over 2.60%, while other ADRs like Rediff, Tata Motors, Wipro, VSNL and ICICI Bank fell marginally in the range of 0.33-1.43% each.
In the commodity space, Crude oil prices fell marginally, with the Nymex light crude oil for November series declined by $0.52 to close at $79.09 a barrel. In the metals space, the Comex Gold for December series rose marginally by $0.50 to settle at $1058.60 a troy ounce, while Comex Silver for December series fell by $0.07 to settle at $17.56 a troy ounce.
Daily trend of FII/MF investment in equities
On October 20, 2009, FIIs remained the net buyers of the Indian Stocks in the tune of Rs1196.70 crore (with the gross purchase of Rs3861.60 crore and gross sales of Rs2664.90 crore). While the Domestic mutual funds mutual funds, on October 17, 2009, were the net buyer of the stocks in the tune of Rs20.50crore (with gross purchase of Rs28.90 crore and gross sales of Rs8.40 crore).
Headlines for the day
Hiring activity up 4.1% in September
Tech Mahindra Q2 net profit declined by 44%
Rallies to invest Rs250 crore in new facility
NMDC drops new diamond exploration projects
Tata Motors Completes Hispano buyout
Events for the day
Major results: Hero Honda Motors, Chambal Fertilizers, Pidilite Industries, Jaiprakash associate and Yes Bank
Market may slide on weak Asia
The key benchmark indices may extend Tuesday (20 October 2009)'s losses on weak Asia. Glut in share sales by Indian firms may suck liquidity from the secondary market may also prompt investors to take some profits off the table after a recent sharp surge in share prices triggered by huge foreign fund inflows.
Index heavyweight Reliance Industries will be in action. The legal battle between Reliance Industries (RIL) and Reliance Natural Resources (RNRL), owned by estranged brothers Mukesh and Anil Ambani, entered its final phase on Tuesday with the counsel for RIL commencing his arguments. The hearing will continue on Wednesday.
RIL's lawyer Harish Salve argued that the memorandum of understanding (MoU) signed between the members of the Ambani family on 18 June 2005, was not binding on the company, as it had never been shown to its board of directors. But even if it was, RIL would be unable to supply 28 million standard cubic metres per day (mmscmd) of gas to RNRL at $2.34 per million British thermal unit (mmBtu) as it contradicted the government's gas pricing and utilisation policy, Mr Salve said. The proceedings, which lasted for over two hours, were marked by interjections from the three-judge bench.
The apex court will have to rule on a number of issues. Apart from the main dispute, as to whether a valid contract exists and what is the correct price, it will have to decide if the government can intervene in the case.
India's largest motor bike maker by sales Hero Honda Motors will announce their Q2 September 2009 result today. 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.
Jaiprakash Associates will announce their Q2 September 2009 result today. Strong order book and higher cement realization are seen driving growth at construction and cement firm Jaiprakash Associates (JAL) in Q2 September 2009. A total of 6 brokerages expect a between a 4.7% fall to a 21.7% growth in JAL's net profit at between Rs 193.50 crore to Rs 247.20 crore in Q2 September 2009 over Q2 September 2008. Their expectations peg a between 64.4% to 83.6% growth in revenue at between 1944.80 crore to Rs 2170.80 crore in Q2 September 2009 over Q2 September 2008
Chambal Fertisers & Chemicals, Yes Bank, Adhunik Metaliks, Agro Tech Foods, Everonn Education, Indraprastha Medical, Lanco Industries, MM Forgings, OCL India, Omnitech Info, Pidilite, Sakthi Sugars, Wabco-TVS, Xpro India, Zuari Industries among others will announce their Q2 September 2009 result today.
Prime Minister Manmohan Singh said on Tuesday the Indian economy will expand at 6-6.5 % in the year to March 2010, despite uncertainty whether signs of a global recovery will lead to a return to a sustained growth path. Singh also said the drought in the country, the worst in decades, had further hit the poorest sections of its people.
The finance secretary Ashok Chawla said on Tuesday the Reserve Bank of India (RBI) would hopefully continue its current easy monetary stance when it reviews policy later this month as it was justified for the present economic scenario. The governor is scheduled to meet the prime minister and finance ministry officials on 23 October 2009 to review the economic situation ahead of the policy.
Meanwhile, oil Minister Murli Deora said to TV media channel on Tuesday he will review petrol and diesel prices in the next 15-20 days. India unexpectedly raised gasoline and diesel prices by as much as 10 % on 1 July 2009 its first increase this year.
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 RBI pumped in massive liquidity in the banking system in the past one year or so to help revive the domestic economy in the aftermath of the global financial crisis. While as exit from the loose monetary policy is imminent, speculation on the bourses is the timing of the exit policy. The RBI is expected to keep its benchmark lending and borrowing rates on hold at a quarterly monetary policy review on 27 October 2009.
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.
The aggregate net profit of 210 companies which have announced results so far, rose 19.1% to Rs 8544 crore on 5.8% rise in sales to Rs 54001 crore in Q2 September 2009 over Q2 September 2008.
Asian stocks declined today led by materials and technology companies, on declines in commodity prices and worse-than-forecast U.S. housing starts. The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan fell by between 0.31% to 0.78%.
US markets retreated on Tuesday on poor economic data even though several earnings reports beat expectations. The Dow Jones fell 50.71 points, or 0.5%, to 10,041.48. The S&P 500 index fell 6.85 points, or 0.6%, to 1,091.06. The Nasdaq Composite index was down 12.85 points, or 0.6%, to 2,163.47.
In day's economic news, readings on both producer price index (PPI) and housing starts missed expectations. Producer prices dropped by 0.6% in September, more than the 0.3% drop economists had expected. Housing starts were the bigger disappointment gaining 0.5% last month, less than the 2.8% increase expected.
In earnings from the US, Yahoo reported a profit that was higher than last year and went past expectations.
Closer home, Key benchmark indices edged lower on Tuesday as a glut in share sales by Indian firms may suck liquidity from the secondary market. Investors took some profits off the table after a recent sharp surge in share prices triggered by huge foreign fund inflows. The BSE 30-share Sensex lost 103 points or 0.59% to 17,223.01 on that day.
As per provisional data, foreign funds on Tuesday, 20 October 2009, bought equities worth a net Rs 275.89 crore. Domestic funds offloaded stocks worth a net Rs 140.80 crore
The supply of paper by Indian firms appear limitless, raising concerns that additional share sales will suck liquidity from the secondary market. As per reports, Indian firms have garnered about $9 billion (Rs 32,400 crore at the current exchange rates) through sale of shares and convertible bonds to institutional buyers since April 2009. Indian companies are taking advantage of a surge in liquidity to recapitalize and fund capital expenditure after being starved of cash last year.
Most of these companies - from industries ranging from liquor and spirits to infotech - issued equity shares to a select group of investors by way of qualified institutional placement or QIP. If the enabling resolutions passed by the companies are any indication, Indian firms are gearing up to raise $15 billion (Rs 69,427 crore) in the next six months. The list includes Hindalco (Rs 2,900 crore), JSW Steel ($1 billion), India Cements ($100 million), Essar Oil ($2 billion), Tata Steel (Rs 5,000 crore), Jet Airways ($ 400 million) and Bharat Forge ($150 million),
Unlisted Reliance Infratel announced on 22 September 2009 its intention to raise Rs 5,000 crore from the primary market. Divestment of state-run firms by the government may also increase the supply of paper in the market.
The government on Monday approved stake sales in state-run power producer NTPC and another unlisted power firm Satluj Jal Vidyut Nigam which reflects the country's resolve to speed up reforms and raise more resources for social schemes. On Monday, Trade Minister Anand Sharma said the Union Cabinet had approved a 5% stake sale in NTPC, and 10% in, an unlisted power producer. On Friday, 16 October 2009, Prime Minister Manmohan Singh said many state-run firms are eager to list their shares in the stock market as it would help unlock their value.
Daily News Roundup - Oct 21 2009
Sterlite Industries has got a leg-up in its takeover battle for bankrupt copper Tata Motors announced the acquisition of full control in Spanish bus and coach maker Hispano Carrocera by purchasing the remaining 79% stake in the foreign firm. (ET)
IOC announced a 1:1 bonus issue after a gap of six years. (ET)
PSU refiners HPCL, BPCL and Indian Oil face Rs50bn monthly losses as crude oil hits US$80. (BL)
The Orissa chief minister urged the Union government for allocation of the entire 1,320Mw power to be generated from the proposed expansion units of Talcher Thermal Power Station (TTPS) of NTPC to Orissa. (BS)
miner Asarco in the US as a district court in Texas has allowed it to argue for its amended bid of US$2.6bn which was earlier rejected by a lower court. (BS)
The 20% disinvestment in SAIL through a two phase follow on public offer would comprise of 5% divestment of the government equity and 5% fresh issue. (ET)
Lanco Infratech Ltd is all set to commission the first unit of Kondapalli expansion project, its maiden merchant power plant, by October-end, and first unit of imported coal-powered project at Udupi in Karnataka by March 2010. (BL)
Essar Group withdrew from the A$144mn bidding contest for Australian coal explorer Rocklands Richfield Ltd leaving JSPL’s offer of A$121mn the only one on the table. (FE)
Production at 60 auto component manufacturing units, except that of Maruti Suzuki, in Gurgaon-Manesar belt was severely affected after around lakh workers observed a day long token strike protesting the death of a striking employee of Rico Auto on Sunday. (ET)
HCC bagged Rs1.7bn order from Gujarat Water Infrastructure for water supply related works. (FE)
HCL Technologies has partnered with Varicent Software for providing the latters solution products in the Asia-Pacific region. (FE)
Reliance Infrastructure led consortium bagged Rs5.9bn contract from NHAI. (FE)
Company Law Board has allowed Mahindra Satyam to file its re-stated accounts by June 30, 2010. (ET)
Merger between Tech Mahindra and Mahindra Satyam is likely to happen over the next three to four quarters. (FE)
Etisalat DB Telecom, a new entrant in the Indian telecom space yet to launch its services, has awarded a 5-year Rs7.5bn end-to-end outsourcing contract to Tech Mahindra, Aegis and Conflux. (ET)
Pipavav Shipyard has signed Rs5.1bn contract to build 12 offshore support vessels for ONGC. (ET)
Ess Dee Aluminium is close to making its first major global acquisition in Europe. (ET)
ABG Shipyard has raised queries about there being any connection between Great Offshore and Bharati Shipyard. (ET)
Sical Logistics has entered into an agreement with New Mangalore Port Trust to set up iron ore handling facilities. (ET)
Century Textiles plans to start commercial real estate development at its Worli mill land and will float a separate division to control it. (ET)
Indiabulls Power IPO is priced at the upper band at Rs45/share. (ET)
The Drug Controller General of India has allowed ~100 stores of Apollo Pharmacy to stock and sell oseltamivir phosphate a drug used in the treatment of H1N1 influenza. (FE)
ArcelorMittal has clarified that it has not deferred its Orissa plan by two years as speculated in different circles. (BS)
NMDC is ramping up diamond production at its existing mines, but will stop new exploration projects due to economic reasons. (BL)
Clenergen India Pvt Ltd, which has entered into a 15-year power purchase agreement with PTC India, plans to set up over 80 MW of biomass based power projects. (BL)
FGL Refractories, which made two overseas acquisitions in the past four years, one each in the UK (2005) and Germany (2008), is planning more such buys. (BL)
Rallis India plans to invest Rs2.5bn over the next three years to set up a new facility in Dahej, Gujarat. (BL)
Coca-Cola wins the legal battle against Bisleri International over Maaza. (ET)
Government plans to give small investors a 5% discount when it sells shares in three state owned companies. (ET)
A RBI panel has proposed a transparent pricing structure for floating interest rate loans where banks cannot manipulate the rate. (ET)
Overseas investors have insisted on higher interest coupons on FCCBs after some of the Indian companies failed to pay back on maturity. (ET)
Many small scale producers could come in the tax net under the proposed GST as the draft seeks to impose the new levy on units with a minimum annual turnover of Rs1mn. (ET)
The government has constituted an EGoM, headed by the finance minister, to allocate additional gas production from the KG Basin to new users. (ET)
Government companies, state owned mining corporations and tariff based power projects including UMPPs may be kept out of the proposed competitive bidding process for captive coal blocks, thus allowing them to get coal at below market prices. (ET)
The Prime Ministers Economic Advisory Council expects industrial output to grow in double digits through the remainder of 2009-20. (FE)
New norms released as a measure to liberalise FDI flows in India had resulted in seven Indian banks being labeled as ‘foreign owned and Indian controlled’ thus severely restricting their existing downstream investments in sectors like insurance. (FE)
Communications and IT minister expressed his doubts whether the 3G spectrum allocation which is supposed to be held in 90 days can be concluded at all in this fiscal due to a shortage of frequencies. (FE)
CERC’s draft power market regulations envisage tighter prudential norms for power exchanges. (FE)
Indonesian Ministry of Energy and Mineral Resources has proposed to cap coal exports at around 150mt a year in a bid to guarantee supplies for domestic power plants. (BS)
The Directorate General of Civil Aviation (DGCA) is planning to set up a separate body called the Civil Aviation Authority of India to lay down the administrative guidelines for the industry. (BS)
After a treat, some retreat!
A good retreat is better than a bad stand
The market has been waiting for a correction though nothing substantial is expected immediately. The global cues point to a weak start for the main indices. The action, as we have been mentioning, will be more in non-index stocks on the positive side. Asian markets are mostly in the red. Overnight the US market retreated from 12-month highs following disappointing housing and inflation data. Barring MTNL, most Indian ADRs were in the red.
The Ambani-battled continues to subdue sentiment with the index heavyweight RIL pulling down the Sensex on Tuesday. RIL counsel has told the Supreme Court that the ongoing legal battle with the Anil Ambani group company, Reliance Natural Resources Ltd (RNRL), should not be construed as one between shareholders of the companies, but between stewards of the two companies. It will take a while before some settlement or decision is arrived at.
Crude oil in New York fell below $US79 a barrel with a climb in the dollar. An industry report showed an increase in crude stockpiles in the US. The indices may remain lackluster but keep a close eye on the mid-cap segment where there is money to be made.
In a bid to woo retail investors, the government plans to give small investors a 5% discount when it sells shares in three state owned companies, a report stated.
The Benchmark Prime Lending Rate will soon be replaced with a base rate, once the Reserve Bank of India Working Group’s report on BPLR is implemented. The RBI has given November 17 as the deadline for any feedback.
All’s not well in auto land. Production at 60 auto component manufacturing units, except that of Maruti Suzuki, in Gurgaon-Manesar belt was severely affected after around lakh workers observed a day long token strike protesting the death of a striking employee of Rico Auto on Sunday.
Results Today: Hero Honda, Jaiprak Associates, Adhunik Met, Agro Tech, Centuryply, Cera Sanitry, Chambal Fert, Diana Tea, Everonn Systems, Kaveri Seeds, Lanco Industries, Mm Forgings, Mukand, Omnitech, Pidilite, Thirumalai, Vinati Organics, Yes Bank and Zuari Industries.
Demat accounts rose at a steady rate of 1.34 per cent both in August and September, show data collated from depositories NSDL and CDSL.
Reports state that Public sector oil refiners are worried that losses on subsidized fuels could touch Rs50bn a month in the third quarter this fiscal if the crude oil remains higher. The saving grace has been the strong rupee so far which will keep a check on the cost of imports. Close on the heels of RIL announcing a bonus, IOC has announced a 1:1 bonus issue, which comes after a gap of six years.
FIIs remain buyers while domestic mutual funds were net sellers on a provisional basis. Interestingly, shareholding patterns released in September indicate FIIs have been upping their stake in many companies while promoters are seen diluting stake.
In the US, building permits, a measure of builder confidence, rose to a 573,000 unit annualized rate in September from a revised 580,000 unit annualized rate in August.
The Producer Price Index (PPI), slipped 0.6% in September.
Asian stocks declined, led by materials and consumer companies. In the US, the Dow Jones fell 50.71 points but managed to stay above the psychological 10K mark closing at 10,041.48. The Nasdaq fell 13 points to close at 2,163.
Indian ADRs were in the red with HDFC BANK falling around 3% to $121.96. Dr Reddys was down 1.5% at $20.06. ICICI Bank too fell by around 1% to $40.72. MTNL was the lone gainer among the ADRs up 3.5% at $3.63.
Markets ended in the negative terrain on Tuesday after returning from a sparkling Diwali break. The start seemed to be quite promising; however bulls were unable to hold on to their gains as key indices witnessed a constant declining intra-day trend.
The BSE Sensex erased nearly 230 points while the NSE Nifty wiped out almost 70 points from their respective intra-day’s high. The index like heavyweights like Reliance Industries, ONGC, M&M and RCom were the major laggards. Weak start to the equity markets across Europe further dampened the sentiment on Dalal-Street.
The BSE Sensex fell 103 points at 17,223 after touching a high of 17,457 and a low of 17,185. The index opened at 17,414 against the previous close of 17,326. The NSE Nifty slipped 29 points to shut shop at 5,112.
In Asia, the Nikkei in Japan ended higher by 1% at 10,336, while Australia's S&P/ASX ended higher by 1.1% at 4,846. Shanghai SE Composite in China rose 1.5% at 3,084 and Hang Seng index in Hong Kong advanced 0.9% to end at 22,384.
In Europe, stocks were flat. The FTSE in the UK was down 0.2%, The DAX in Germany was down 0.1% and the CAC 40 index was flat.
Coming back to India, among the BSE sectoral indices, the Realty index was the top gainer, adding 0.7%, followed by the Metal index that was up 0.7% and the BSE IT index was up 0.3%.
Even the BSE Mid-Cap index was flat and the BSE Small-Cap index was up 0.2%.
Among the 30-components of Sensex, 18 stocks ended in the red and 12 ended in the positive terrain. Among the major laggards were, M&M, RCom, ONGC, Reliance Industries and Grasim.
On the other hand, Hindalco, Tata Steel, TCS, JP Associates and Wipro were among the major gainers.
Outside the frontline indices, the big losers in the broader market were Essar Oil, EIH, Sun TV, PTC, Crompton Graves and Idea. On the other hand, gainers included Hind Copper, Andhra Bank, APIL, Yes Bank and GVK Power.
The tussle between the two brothers seems to be far from over after the Supreme Court on Tuesday adjourned the hearing for the gas dispute.
Shares of Reliance Industries slipped 2% to end at Rs2183. On the other hand, shares of RNRL gained by 1.2% to end at Rs87.9.
RNRL is fighting with the Reliance Industries for supply of gas at US$2.34 per mBtu based on a family agreement between the two brothers. However, the centre told the Supreme Court that the terms of a MoU signed between Reliance Industries and RNRL on supply of gas from the KG basin violated the production sharing contract between Reliance and the government.
According to the MoU, Reliance is to supply 28mmscmd of gas to RNRL at US$2.34 per mmBtu which is at a 44% discount to a price of US$4.20 per mmBtu fixed later by the government for sale of gas by Reliance to some power and fertiliser companies.
Shares of NTPC gained by 1% to Rs216 after reports stated that the government announced that it may sell a 5% stake by as early as December.
Post the stake dilution, the Government’s holding in NTPC would fall to 84.5% from the current 89.5%. The proceeds would go into the National Investment Fund, which was set up in 2005.
Varicent and HCL Technologies announced that they entered in to a partnership to deliver Sales Performance Management solutions. Shares of HCL Tech gained 3% to Rs310. The stock opened at Rs305 and made an intra-day high of Rs314 and a low of Rs302. Total traded volumes stood at 0.23mn shares.
Reliance Infra won Rs5.9bn Jaipur-Reengus road project from NHAI. Shares of Reliance Infra have gained by 1% to Rs1303. The stock opened at Rs1314 and made an intra-day high of Rs1323 and a low of Rs1286. Total traded volumes stood at 0.4mn shares.
Shares of Sical Logistics surged by over 4% to Rs67.5 after the company announced that pursuant to the LOA received from the New Mangalore Port Trust for the setting up of iron ore handling facilities at the deep draft multi purpose berth on BOT basis at New Mangalore Port, the Concession Agreement was signed on October 19, 2009 between the Board of Trustees of New Mangalore Port Trust and Sical Iron Ore Terminal (Mangalore) Ltd (an SPV arm of Sical).
Daiwa Securities, Japan has denied reports that the company is entering in to an alliance with Reliance Capital. Reports had stated that Reliance Capital, through its subsidiary Reliance Securities, was planning to enter into a strategic alliance with investment bank Daiwa Securities, Japan to set up investment banking business in India.
Reports also added that the two companies are in advanced stages of negotiations to finalise the contours of the deal. Shares of Reliance Capital slipped by 1.5% to end at Rs927. The stock opened at Rs942 and made an intra-day high of Rs945 and a low of Rs923. Total traded volumes stood at 0.82mn shares.
Pipavav Shipyard announced that it signed a contract with ONGC for an amount of Rs5.14bn.
The contract is for construction and supply of 12 Offshore Support Vessels. Vide the said Contract ONGC also reserved the right to place order for Spares upto Rs81mn for the Offshore Support Vessels.
Shares of Pipavav Shipyard ended flat at Rs57. The stock opened at Rs56 and made an intra-day high of Rs58.35 and a low of Rs47.65. Total traded volumes stood at 2.9mn shares.Grasim Industries
We recommend a sell in the stock of Grasim Industries from a short-term perspective. It is evident from the charts that the stock was on an intermediate-term uptrend from December 2008 low of Rs 872 to July 2009 high of Rs 2,938. However, after encountering key resistance around Rs 2,900, the stock reversed direction triggered by negative divergence in the weekly relative strength index (RSI). It formed a double top, a top reversal pattern spanning between mid-July and early October with baseline at Rs 2,465. On October 9, the stock conclusively broke through this pattern by tumbling almost 3 per cent. Subsequently, it penetrated the intermediate-term uptrend-line and continued its decline. The stock is currently trading well below its 21-day and 50-day moving averages. The daily RSI is featuring in the bearish zone and weekly RSI is slipping towards this zone in the neutral region. We are bearish on the stock from a short-term perspective. We anticipate the stock’s decline to continue until it hits our price target of Rs 2,140. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 2,450.
via BL
Precious metals end mixed
Gold rises for third consecutive day
Yellow metal prices rose higher for third straight day on Tuesday, 20 October, 2009. Traders anticipated that the dollar will slump further and also interest rates will stay at minimum levels in the next few months in US. But silver dropped for the day
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Tuesday, gold for December delivery ended at $1,058.6, higher by $0.50 (0.05%) an ounce on the New York Mercantile Exchange. In the last week gold had registered record highs quite a few times. It reached an all time high of $1071 earlier last week. Last week, gold ended higher by 0.3%. Year to date, gold prices are higher by 20%.
Gold ended September, 2009 higher by 5.9%. For the third quarter it ended higher by 8.7%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On Tuesday, December Comex silver futures ended lower by 6.7 cents (0.4%) at $17.558 an ounce.
Silver ended 11.8% higher for September, 2009. Year to date, silver has climbed 59% this year. For 2008, silver had lost 24%.
In the currency market on Tuesday, the dollar came under further pressure after the Federal Reserve Bank of New York clarified yesterday that it has been testing reverse-repurchase agreements for technical reasons, and that the tests shouldn't be seen as hints of a tighter monetary policy, which might ordinarily be bullish for the U.S. currency. The dollar index, has dropped 7% this year. The dollar index, which measures the strength of dollar against a basket of six other currencies, fell to a fourteen month low this year.
In the crude market today, crude oil surpassed $79 once again and closed marginally lower.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for December delivery closed higher by Rs 4 (0.02%) at Rs 15,853 per 10 grams. Prices rose to a high of Rs 15,870 per 10 grams and fell to a low of Rs 15,777 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed Rs 121 (0.44%) higher at Rs 27,062/Kg. Prices opened at Rs 26,983/kg and rose to a high of Rs 27,100/Kg during the day's trading.
Crude ends little lower
Prices pare their early gains
Crude prices ended marginally lower at Nymex on Tuesday, 20 October, 2009. Prices dropped for the first time in nine sessions. Prices rose earlier in the day but then pared its gains as traders anticipated that crude's recent rally was overdone.
On Tuesday, crude-oil futures for light sweet crude for November delivery closed at $79.08/barrel (lower by $0.52 or 0.7%). Earlier during the day, it rose to a high of $80.05. Last week, crude ended higher by 9.4%, the biggest weekly gain in two months. In the past two weeks, crude has climbed up by almost 14%.
For the month of September, 2009, crude ended higher by a marginal 0.9%. For the third quarter, crude ended higher by just 1%. Crude prices had rallied 40% and 11.3% in the second and first quarter of 2009 respectively.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 55.8% since then. Year to date, in 2009, crude prices are higher by 57.3%.
In the currency market on Tuesday, the dollar came under further pressure after the Federal Reserve Bank of New York clarified yesterday that it has been testing reverse-repurchase agreements for technical reasons, and that the tests shouldn't be seen as hints of a tighter monetary policy, which might ordinarily be bullish for the U.S. currency. The dollar index, has dropped 7% this year. The dollar index, which measures the strength of dollar against a basket of six other currencies, fell to a fourteen month low this year.
In the latest monthly report, the Organization of the Petroleum Exporting Countries, last week, raised its forecast for world oil demand by 200,000 barrels a day for both this year and 2010. After the revision, world oil demand in 2009 is expected to average 84.2 million barrels a day, which represents a decline of 1.4 million barrels from 2008 levels. In 2010, global oil demand is expected to average 84.9 million barrels a day, marking a growth of 700,000 barrels a day from 2009 levels.
Among other energy related products, November gasoline futures ended slightly higher at $1.9877 a gallon, and November heating oil fell 0.2% to $2.0473 a gallon.
Also on Tuesday, November natural gas rose 32.6 cents, or 6.7%, to $5.161 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for November delivery closed lower by Rs 16 (0.43%) at Rs 3,651/barrel. Natural gas for October delivery closed higher by Rs 2.1 (0.94%) at Rs 223.8/mmbtu.
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