India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Tuesday, October 27, 2009
Temasek, Singapore government cut stake in ICICI Bank
ICICI Bank slipped 4.88% to Rs 847.20 at 13:03 IST on reports the Singapore government and its investment arm, Temasek Holdings, have been gradually reducing stake in ICICI Bank, their one of their biggest investments in India.
Meanwhile, the BSE Sensex was down 248.04 points, or 1.48%, to 16492.46.
On BSE, 11.05 lakh shares were traded in the counter as against an average daily volume of 13.57 lakh shares in the past one quarter.
The stock hit a high of Rs 898.50 and a low of Rs 840 so far during the day. The stock had hit a 52-week high of Rs 983.70 on 7 October 2009 and a 52-week low of Rs 252.75 on 6 March 2009.
The stock had outperformed the market over the past one month till 26 October 2009, rising 6.21% as compared to the Sensex 0.28% rise. It outperformed the market in past one quarter, gaining 16.15% as against 8.85% rise in the Sensex.
India's largest private sector bank by market capitalisation has an equity capital of Rs 1113.65 crore. Face value per share is Rs 10.
The current price of Rs 847.20 discounts the company's Q1 June 2009 annualised EPS of Rs 31.55, by a PE multiple of 26.85.
The collective holding of the Singapore government and its investment arm, Temasek Holdings in ICICI Bank has come down to 7.29% in the quarter ended September from nearly 9.27% in the quarter ended June 2009 and 9.91% in the quarter ended March 2009
Temasek said in a statement in Singapore that any stake sales are part of regular moves to review and rebalance its portfolio.
Temasek has been reducing its stakes in financial firms after making losses on its investments in Merrill Lynch and Barclays last year. It sold its stakes in the two Western banks at an estimated loss of $4 billion in its last financial year that ended in March 2009.
Meanwhile, bank shares witnessed across the board selling pressure after the central bank did not announce any hike in the ceiling on the portion of government securities that banks can park in held-to-maturity segment.
The market has been agog with talks of the central bank hiking the ceiling on the portion of government securities that banks can park in held-to-maturity (HTM). Banks do not have to make any mark-to-market provisions on securities held in the held-to-maturity (HTM) 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.
Meanwhile, the Reserve Bank of India (RBI), in its quarterly monetary policy review today, kept its benchmark lending and borrowing rates unchanged. It has also kept the cash reserve ratio (CRR), (the proportion of deposits banks have to keep with the RBI in reserve) untouched at 5%.
Opting to support a nascent economic recovery instead of tackling rising prices, the central bank left the repo rate (at which it lends short-term funds to banks) unchanged at 4.75%, and also the reverse repo rate (through which it absorbs liquidity from the banking system), unchanged at 3.25%.
The RBI has, however, hiked the statutory liquidity ratio (SLR) (the minimum amount of cash, gold or bonds banks need to maintain with themselves) to 25% from 24%.
ICICI Bank had sold 4.41% stake in software services provider 3i Infotech for Rs 46.17 crore on 30 September 2009, in open market transactions on BSE and NSE.
ICICI Bank, a promoter group firm of 3i Infotech, sold 28.42 lakh equity shares of the IT firm at a price of Rs 79.79 each, aggregating to Rs 22.67 crore, according to bulk deal data available on the Bombay Stock Exchange.
In addition, the bank also sold 29.35 lakh shares of 3i Infotech in another bulk deal on the National Stock Exchange at a price of Rs 80.05 per piece, totalling Rs 23.49 crore.
As per the shareholding information for the quarter ended June 2009, ICICI Bank held 9.62% stake in 3i Infotech.
LIC bought a large portion of the 3i Infotech shares which ICICI Bank sold. LIC bought 32 lakh shares in 3i Infotech for a total of Rs 25.27 crore in bulk deals at the NSE and the BSE.
As on June 2009, LIC India held 7.45% stake, or 97.47 lakh shares, in 3i Infotech.
ICICI Bank's net profit rose 20.6% to Rs 878.22 crore on a 2.2% decline in operating income to Rs 9223.32 crore in Q1 June 2009 over Q1 June 2008. Cost-cutting measures and treasury profits enabled the bank beat market estimates in Q1 June 2009.
ICICI Bank recorded a treasury income of Rs 714 crore in Q1 June 2009 as against a loss of Rs 594 crore in Q1 June 2008. The bank's employee cost fell 10.89% to Rs 466 crore and the direct market expenses fell 88.15% to Rs 27 crore in Q1 June 2009 over Q1 June 2008.
ICICI Bank provides retail-banking, corporate banking, cash management and treasury management services.
Record turnover on NSE's F&O segment
Nifty October 2009 futures at discount
Nifty October 2009 futures were at 4,842, at a discount of 4.70 points as compared to the spot closing of 4,846.70. Turnover in NSE's futures & options (F&O) segment spurted to a record Rs 1,21,614.13 crore from Rs 85,283.71 crore on Monday, 26 October 2009.
The near month October 2009 futures contract will expire on Thursday, 29 October 2009.
State Bank of India (SBI) October 2009 futures were at a slight premium at 2,210.80 compared to the spot closing of 2,204.70.
ICICI Bank October 2009 futures were at premium at 835 compared to the spot closing of 832.
Tata Steel October 2009 futures were at discount at 498.40 compared to the spot closing of 502.90.
In the cash market, the S&P CNX Nifty lost 124.20 points or 2.50% at 4,846.70.
Sensex, Nifty drop over 2% at close
The Sensex ended sharply lower weighed by realty, metal, banking and consumer durables stocks. Broader markets also added fuel to the sentiment. After opening bearish, with a loss of 41.41 points, at 16,699.09 on Tuesday tracking negative global cues, the index traded lower and bit recovered after RBI announcement. However in the latter part of the day, the benchmark index plunged further on intense selling seen across board in line with international markets. Further it slumped over 400 points after hitting a low of 16,311.50 at close.
BSE Midcap and Smallcap index plunged 3.69% and 4.42% respectively.
As expected the Reserve Bank of India (RBI) left key rates unchanged in its second quarter monetary policy review today. The repo rate has been kept unchanged at 4.75%. The reverse repo rate left steady at 3.25%.
The bank rate has been retained unchanged at 6.0%. The cash reserve ratio (CRR) of scheduled banks has been retained unchanged at 5% of their net demand and time liabilities (NDTL).
Statutory liquidity ratio (SLR) for scheduled commercial banks has been hiked by 100 basis points to 25% of their NDTL with effect from the fortnight beginning Nov. 7, 2009.
The finance ministry had expressed hope that the RBI in its monetary policy review on October 27 will continue the current soft policy stance.
European stocks advanced as earnings from BP and Vestas Wind Systems topped analysts` estimates. UK`s benchmark index FTSE 100 gained 21.23 points, or 0.41%, to trade at 5,212.97. French benchmark index CAC 40 rose 13.56 points or 0.36% to trade at 3,758.01. Germany`s benchmark index DAX increased 17.54 points or 0.31% to trade at 5,659.70 (4.30 p.m.)
Asian stocks declined, dragging the MSCI Asia Pacific Index down by the most in three weeks, as raw- material prices fell yesterday and Hong Kong enacted measures to curtail property speculation. Japanese benchmark index Nikkei fell 150.16 points, or 1.45%, to end at 10,212.46. Hong Kong`s Hang Seng index declined 420.14 points, or 1.86%, to close at 22,169.59. China`s Shanghai Composite lost 88.11 points, or 2.83% to settle at 3,021.46.
The Sensex ended the day with a loss of 387.10 points, or 2.31% at 16,353.40 after touching a high of 16,699.09 and a low of 16,311.50. The broad-based NSE Nifty fell 124.20 points, or 2.50% at 4,846.70 after hitting a high of 4,970.55 and a low of 4,829.50.
Major gainers in the 30-share index were Wipro (2.18%), Tata Motors (1.56%), Hindustan Unilever (0.86%), Grasim Industries (0.78%), Sun Pharmaceutical Industries (0.35%), and Bharat Heavy Electricals (0.09%).
On the other hand, Hindalco Industries (7.92%), Reliance Capital (7.79%), Tata Steel (7.26%), Bharti Airtel (7.08%), Reliance Communications (6.61%), and DLF (6.58%) were the major losers in the Sensex.
Overall market breadth was extremely negative. Out of the total 2,790 stocks traded at BSE, 442 advanced, 2,281 declined while 67 remained unchanged.
All sectoral indices settled negative. BSE Realty fell 6.24%, Metal dropped 5.82%, Bankex dropped 3.82%, Consumer Durables dropped 3.26%.
BSE Bulk Deals to Watch - Oct 27 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
27/10/2009 524760 ARVIND INTER ASHTHA TYAGI B 36742 14.70
27/10/2009 533006 BIRLA COTSYN SCB CORPORATION S 2600000 0.97
27/10/2009 531337 CHAN GUIDE I ALTRA CLEAN OPERATIONS B 55000 83.89
27/10/2009 531337 CHAN GUIDE I AMI SECURITIES B 30207 86.13
27/10/2009 531337 CHAN GUIDE I KAMAL JAJOO HUF S 30000 86.02
27/10/2009 533026 CHEMCEL RAJESH RAVINARAYAN HATI B 135650 12.79
27/10/2009 533026 CHEMCEL RAJESH RAVINARAYAN HATI S 135650 12.87
27/10/2009 533026 CHEMCEL SUNIL BHANDARI S 200000 12.28
27/10/2009 532363 COMP-U-LEARN RAMESH BABU P B 180070 37.76
27/10/2009 532363 COMP-U-LEARN K VENKATESWARLU B 110596 37.29
27/10/2009 532363 COMP-U-LEARN RAMESH KORITALA B 123044 37.49
27/10/2009 532363 COMP-U-LEARN HITESH SHASHIKANT JHAVERI B 70845 38.25
27/10/2009 532363 COMP-U-LEARN ARCHANA SECURITIES B 110000 34.93
27/10/2009 532363 COMP-U-LEARN CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 94466 37.64
27/10/2009 532363 COMP-U-LEARN HEMENDRA RATILAL MEHTA B 109100 36.21
27/10/2009 532363 COMP-U-LEARN ARCADIA SHARE & STOCK BROKERS PVT. LTD S 77215 37.66
27/10/2009 532363 COMP-U-LEARN RAMESH BABU P S 168093 36.82
27/10/2009 532363 COMP-U-LEARN K VENKATESWARLU S 100308 37.30
27/10/2009 532363 COMP-U-LEARN RAMESH KORITALA S 115037 37.38
27/10/2009 532363 COMP-U-LEARN HITESH SHASHIKANT JHAVERI S 153207 38.02
27/10/2009 532363 COMP-U-LEARN VIPUL RAMESHCHANDRA SHAH S 100000 36.94
27/10/2009 532363 COMP-U-LEARN CHIMANLAL MANEKLAL SECURITIES PVT.LTD S 113731 37.31
27/10/2009 514418 DUJODWA PROD HEMANT KUMAR GUPTA B 48183 14.38
27/10/2009 524830 ELDER HEALTH JYOTI PARAG THAKUR B 38360 83.51
27/10/2009 531137 GEMSTONE INV HEMANT MADHUSUDAN SHETH S 40000 36.00
27/10/2009 533048 GI ENGINERG SHRI PARASRAMHOLDING PVT LTD B 41593 13.69
27/10/2009 533048 GI ENGINERG SHRI PARASRAMHOLDING PVT LTD S 40000 14.99
27/10/2009 500201 INDIA GLYCOL MANJULA JAYNTILAL JAIN S 179572 147.27
27/10/2009 523467 JAI MATA GLA DHEERAJ LOHIA B 100000 2.50
27/10/2009 523467 JAI MATA GLA Naman Securities & Finance Pvt. Ltd. B 204532 2.50
27/10/2009 523467 JAI MATA GLA SHER SINGH B 75000 2.49
27/10/2009 523467 JAI MATA GLA SUMAN GUPTA S 100000 2.50
27/10/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 416987 2.48
27/10/2009 523467 JAI MATA GLA Naman Securities & Finance Pvt. Ltd. S 215532 2.49
27/10/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD S 70000 2.28
27/10/2009 523467 JAI MATA GLA BHAVIN Y MEHTA S 174279 2.50
27/10/2009 511131 KAMAN HSG NISHA SUMANJAIN B 99195 62.57
27/10/2009 523475 LOTUS CHOC C VARIJA KAMATH B 88465 30.98
27/10/2009 530543 MARG LTD GMO Emerging Markets B 489800 193.99
27/10/2009 530543 MARG LTD PASHA FINANCE PVT LTD S 380000 196.50
27/10/2009 526263 MOLDTEK TECH VENKATA RAMAIAH KAZA S 23237 80.17
27/10/2009 524816 NATCO PHARMA RAMNISHKAPOOR B 437939 127.44
27/10/2009 524816 NATCO PHARMA RAMNISH KAPOOR S 437939 122.21
27/10/2009 531769 PFL INFOTECH TANUJ DROLIA B 25000 9.27
27/10/2009 531769 PFL INFOTECH SHANTI DEVI AGARWAL B 30000 9.27
27/10/2009 531769 PFL INFOTECH PRADEEP KUMAR AGARWAL & OTHERS (HUF) B 30000 9.27
27/10/2009 531769 PFL INFOTECH PRADEEP KUMAR AGARWAL B 30000 9.27
27/10/2009 531769 PFL INFOTECH MUKESH KUMAR AGARWAL & OTHERS (HUF) B 30000 9.27
27/10/2009 531769 PFL INFOTECH MUKESH KUMAR AGARWAL B 30000 9.27
27/10/2009 531769 PFL INFOTECH INDRA AGARWAL B 30000 9.27
27/10/2009 531769 PFL INFOTECH DEVRAJ AGARWAL & SONS (HUF) B 30000 9.27
27/10/2009 531769 PFL INFOTECH ANITA AGARWAL B 30000 9.27
27/10/2009 531769 PFL INFOTECH SHIKHA JHUNJHUNWALA B 30000 9.00
27/10/2009 531769 PFL INFOTECH SHREYA JHUNJHUNWALA B 30000 9.00
27/10/2009 531769 PFL INFOTECH SANJAY JHUNJHUNWALA B 30000 9.24
27/10/2009 531769 PFL INFOTECH DEEPAK HUF B 29506 9.20
27/10/2009 531769 PFL INFOTECH ANURAG JHUNJHUNWALA B 30000 9.00
27/10/2009 531769 PFL INFOTECH SWAPNA KHAITAN B 30000 9.00
27/10/2009 531769 PFL INFOTECH SAILESH KHAITAN B 30000 9.00
27/10/2009 531769 PFL INFOTECH UTKARSH KANORIA (MINOR) B 50000 9.00
27/10/2009 531769 PFL INFOTECH ISHITA MOHATTA B 50000 9.00
27/10/2009 531769 PFL INFOTECH ROOPLATA MANAKCHAND JAIN S 113000 9.27
27/10/2009 531769 PFL INFOTECH GOLKONDA FINANCE & TRADING PRIVATE LTD S 340000 9.17
27/10/2009 531769 PFL INFOTECH SWAIN FINANCE AND TRADING PVT LTD S 155878 9.00
27/10/2009 590077 RANKLIN SOLU K M REDDY B 29000 35.23
27/10/2009 590077 RANKLIN SOLU SRINIVASA RAO PABBATHI B 28000 35.29
27/10/2009 531901 SAARC NET SANJEEV PATEL S 359280 2.10
27/10/2009 506172 SAMPADA CHEM HIMALAYA BUILDERS PVT LTD S 53000 34.15
27/10/2009 513472 SIMPLEX CAST NIYO JOSH B 51332 81.01
27/10/2009 532887 SUJANATOWER CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED S 305000 58.50
27/10/2009 533121 THINKSOFT VIJETA BROKING INDIA PRIVATE LIMITED B 98133 185.30
27/10/2009 533121 THINKSOFT SETU SECURITIES PVT LTD B 53531 188.26
27/10/2009 533121 THINKSOFT AMIT MANILAL GALA B 95276 178.22
27/10/2009 533121 THINKSOFT GENUINE STOCK BROKERS PVT. LTD. B 98912 179.98
27/10/2009 533121 THINKSOFT TRANSGLOBAL SECURITIES LTD. B 445719 182.64
27/10/2009 533121 THINKSOFT MBL & Co. LTD. B 55056 181.89
27/10/2009 533121 THINKSOFT PRAKASHBHAI NARSINHBHAI PATEL B 61680 186.39
27/10/2009 533121 THINKSOFT YES INVESGTMENT B 63000 181.62
27/10/2009 533121 THINKSOFT NARENDRABHAI AMTRATLAL AMIN B 74077 175.06
27/10/2009 533121 THINKSOFT MATRIX EQUITRADE PVT. LTD. B 150686 182.83
27/10/2009 533121 THINKSOFT CHANDARANA INTERMIDIARY BROKERS PVT LTD B 61345 179.79
27/10/2009 533121 THINKSOFT MARWADI SHARES AND FINANCE LTD. B 275992 179.12
27/10/2009 533121 THINKSOFT EUREKA STOCK & SHARE BROKING SERVICES LTD B 171980 179.47
27/10/2009 533121 THINKSOFT SANJEEV SINGHAL B 115628 180.21
27/10/2009 533121 THINKSOFT OPG SECURITIES P LTD B 1529720 179.76
27/10/2009 533121 THINKSOFT MANSUKH STOCKS BROKERS LTD. B 141397 177.79
27/10/2009 533121 THINKSOFT R.M.SHARES TRADING PVT.LTD B 61016 178.76
27/10/2009 533121 THINKSOFT NARESH CHAND JAIN B 55647 187.59
27/10/2009 533121 THINKSOFT Naman Securities & Finance Pvt. Ltd. B 194412 192.96
27/10/2009 533121 THINKSOFT JMP SECURITIES PVT LTD B 64485 189.14
27/10/2009 533121 THINKSOFT DINDAYAL BIYANI STOCK BROKER LTD B 50765 185.24
27/10/2009 533121 THINKSOFT JASUBHAI MANILAL THAKKAR B 123248 167.32
27/10/2009 533121 THINKSOFT SHAILESHKUMAR M PATEL B 95956 194.70
27/10/2009 533121 THINKSOFT DHANUSHA K. PATEL B 56698 173.83
27/10/2009 533121 THINKSOFT H.J. SECURITIES PVT. LTD. B 61860 172.88
27/10/2009 533121 THINKSOFT RAKHI KALPESH BHANDARI B 56593 177.63
27/10/2009 533121 THINKSOFT NAVEEN TAPARIA B 95669 183.31
27/10/2009 533121 THINKSOFT A.A.DOSHI SHARE & STOCK BROKERS LTD B 90032 193.04
27/10/2009 533121 THINKSOFT BP FINTRADE PRIVATE LIMITED B 57378 188.66
27/10/2009 533121 THINKSOFT AKASH BACHUBHAI PATAVA B 82731 193.79
27/10/2009 533121 THINKSOFT VIJETA BROKING INDIA PRIVATE LIMITED S 98133 183.54
27/10/2009 533121 THINKSOFT SETU SECURITIES PVT LTD S 51809 185.14
27/10/2009 533121 THINKSOFT AMIT MANILAL GALA S 95276 178.54
27/10/2009 533121 THINKSOFT GENUINE STOCK BROKERS PVT. LTD. S 98912 179.53
27/10/2009 533121 THINKSOFT TRANSGLOBAL SECURITIES LTD. S 445819 181.19
27/10/2009 533121 THINKSOFT MBL & Co. LTD. S 55056 179.71
27/10/2009 533121 THINKSOFT PRAKASHBHAI NARSINHBHAI PATEL S 61680 194.73
27/10/2009 533121 THINKSOFT YES INVESGTMENT S 63000 172.69
27/10/2009 533121 THINKSOFT NARENDRABHAI AMTRATLAL AMIN S 59077 197.15
27/10/2009 533121 THINKSOFT MATRIX EQUITRADE PVT. LTD. S 150686 183.11
27/10/2009 533121 THINKSOFT CHANDARANA INTERMIDIARY BROKERS PVT LTD S 61345 177.58
27/10/2009 533121 THINKSOFT MARWADI SHARES AND FINANCE LTD. S 275992 178.61
27/10/2009 533121 THINKSOFT EUREKA STOCK & SHARE BROKING SERVICES LTD S 171980 179.66
27/10/2009 533121 THINKSOFT SANJEEV SINGHAL S 115628 180.43
27/10/2009 533121 THINKSOFT OPG SECURITIES P LTD S 1529720 180.03
27/10/2009 533121 THINKSOFT MANSUKH STOCKS BROKERS LTD. S 141398 176.41
27/10/2009 533121 THINKSOFT R.M.SHARES TRADING PVT.LTD S 61016 178.02
27/10/2009 533121 THINKSOFT NARESH CHAND JAIN S 55648 187.46
27/10/2009 533121 THINKSOFT Naman Securities & Finance Pvt. Ltd. S 167868 189.73
27/10/2009 533121 THINKSOFT JMP SECURITIES PVT LTD S 82285 184.45
27/10/2009 533121 THINKSOFT DINDAYAL BIYANI STOCK BROKER LTD S 50765 182.50
27/10/2009 533121 THINKSOFT JASUBHAI MANILAL THAKKAR S 123248 195.79
27/10/2009 533121 THINKSOFT SHAILESHKUMAR M PATEL S 95956 189.94
27/10/2009 533121 THINKSOFT DHANUSHA K. PATEL S 56698 173.03
27/10/2009 533121 THINKSOFT H.J. SECURITIES PVT. LTD. S 61860 173.01
27/10/2009 533121 THINKSOFT RAKHI KALPESH BHANDARI S 56593 178.14
27/10/2009 533121 THINKSOFT NAVEEN TAPARIA S 95669 182.21
27/10/2009 533121 THINKSOFT A.A.DOSHI SHARE & STOCK BROKERS LTD S 89971 192.50
27/10/2009 533121 THINKSOFT BP FINTRADE PRIVATE LIMITED S 57465 187.55
27/10/2009 533121 THINKSOFT AKASH BACHUBHAI PATAVA S 82731 196.72
27/10/2009 513216 UTTAM GALVA ANKIT RAJINDERKUMAR MIGLANI B 1000000 117.60
27/10/2009 513216 UTTAM GALVA SAINATH TRADING CO PVT LTD S 1455700 117.73
27/10/2009 531249 WELL PACK PA PANDYA YAMINIBEN M B 22578 275.65
NSE Bulk Deals to Watch - Oct 27 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
27-OCT-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,BUY,125660,67.24,-
27-OCT-2009,INDIAGLYCO,India Glycols Ltd,MANJULA JAYANTILAL JAIN,BUY,154647,144.24,-
27-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,7063228,21.78,-
27-OCT-2009,NATCOPHARM,Natco Pharma Limited,OM INVESTMENTS,BUY,150837,123.58,-
27-OCT-2009,NATCOPHARM,Natco Pharma Limited,RAMNISH KAPOOR,BUY,346545,126.16,-
27-OCT-2009,PVP,PVP Ventures Limited,CITIGROUP GLOBAL MKTS (M) PVT. LTD.,BUY,2000000,46.82,-
27-OCT-2009,SUJANATOW,Sujana Tower Limited,DKG SECURITIES PVT. LTD.,BUY,223010,58.75,-
27-OCT-2009,SUJANATOW,Sujana Tower Limited,EUREKA CREDIT FINANCE PRIVATE LIMITED,BUY,890065,58.72,-
27-OCT-2009,SUJANATOW,Sujana Tower Limited,KANUDIA CAPITAL & MANAGEMENT SERVICES PVT. LTD.,BUY,151088,57.15,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,ARCHITA C GADA,BUY,86138,179.91,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,AVNI A.KORADIA,BUY,62500,190.27,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,B RAJENDRA,BUY,100000,176.72,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,BP FINTRADE PRIVATE LIMITED,BUY,446180,184.07,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,CHANDARANA INTERMEDIARIES BROKERS P. LTD,BUY,51111,177.16,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,CPR CAPITAL SERVICES LTD.,BUY,279588,182.97,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,DHYAN SECURITIES PVT LTD,BUY,105806,181.89,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINDAYAL BIYANI STOCK BROKERS LTD,BUY,56557,182.71,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINESH MUNJAL(HUF),BUY,359726,184.01,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,DIPAN MEHTA SHARE & STOCK BROKERS PVT. LTD.,BUY,85522,177.90,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,G RAMAKRISHNA,BUY,87000,183.42,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,87766,178.99,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,HARBUX SINGH SIDHU,BUY,475049,185.46,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,JAIN AMITESH KUMAR,BUY,69073,185.73,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,JASUBHAI MANILAL THAKKAR,BUY,104200,168.66,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,356007,180.08,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,331665,179.32,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANISH KUMAR ASHKARAN,BUY,68049,190.83,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANISH VIRCHAND LAKHANI,BUY,75000,191.82,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,BUY,132690,175.94,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,287223,178.28,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,BUY,63817,180.07,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MEET TRADELINK,BUY,225552,178.42,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NAGA DURGA HEMALATHA SIRAM,BUY,79000,186.50,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,306066,187.82,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NEPTUNE FINCOT PVT LTD,BUY,153906,182.88,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NIKON FINLEASE PVT. LTD,BUY,88619,176.64,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,BUY,649555,179.41,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,PALAKKUNNATHU SIMON PHILIP,BUY,109558,183.61,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,PATEL PRAKASHBHAI NARSINHBHAI,BUY,192549,173.67,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,PRASHANT JAYANTILAL PATEL,BUY,92654,181.29,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,R APPALA RAJU,BUY,201097,189.16,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,R.M. SHARE TRADING PVT LTD,BUY,56351,178.02,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,RAHUL DOSHI,BUY,55112,197.25,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,RAO GANNE SRINIVASA,BUY,92389,180.22,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,SANJAY BHANWARLAL JAIN,BUY,263779,184.04,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,SMART EQUITY BROKERS PRIVATE LIMITED,BUY,61570,178.26,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,SVS SECURITIES PVT. LTD.,BUY,58764,182.66,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,TOUCHSTONE SECURITIES,BUY,78640,173.92,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,436359,181.38,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,UDEY DUTT ASSOCIATES PRIVATE LIMITED,BUY,90000,192.51,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,URVI INVESTMENT (PROP:JYOTI MEHTA),BUY,163143,182.40,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,VAIBHAV DOSHI,BUY,52520,187.10,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,VIJETA BROKING INDIA PRIVATE LIMITED,BUY,102664,180.89,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,60059,196.30,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,YES INVESTMENTS VISHAL KISHORE BHATIA,BUY,112000,184.15,-
27-OCT-2009,ESSDEE,Ess Dee Aluminium Limited,VOLRADO VENTURE PARTNERS,SELL,151518,368.63,-
27-OCT-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,SELL,119363,65.79,-
27-OCT-2009,INDIAGLYCO,India Glycols Ltd,MANJULA JAYANTILAL JAIN,SELL,266595,147.45,-
27-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,7015701,21.77,-
27-OCT-2009,NATCOPHARM,Natco Pharma Limited,OM INVESTMENTS,SELL,150837,123.64,-
27-OCT-2009,NATCOPHARM,Natco Pharma Limited,RAMNISH KAPOOR,SELL,368066,125.51,-
27-OCT-2009,PARACABLES,Paramount Communications,MASS ESTATES PVT.LTD.,SELL,650000,12.15,-
27-OCT-2009,SUJANATOW,Sujana Tower Limited,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,250000,58.70,-
27-OCT-2009,SUJANATOW,Sujana Tower Limited,DKG SECURITIES PVT. LTD.,SELL,223010,58.75,-
27-OCT-2009,SUJANATOW,Sujana Tower Limited,KANUDIA CAPITAL & MANAGEMENT SERVICES PVT. LTD.,SELL,226088,58.75,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,ARCHITA C GADA,SELL,86138,180.36,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,AVNI A.KORADIA,SELL,62500,174.51,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,B RAJENDRA,SELL,100000,194.90,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,BP FINTRADE PRIVATE LIMITED,SELL,447939,184.40,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,CHANDARANA INTERMEDIARIES BROKERS P. LTD,SELL,51611,180.17,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,CPR CAPITAL SERVICES LTD.,SELL,279638,183.08,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,DHYAN SECURITIES PVT LTD,SELL,105806,175.18,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINDAYAL BIYANI STOCK BROKERS LTD,SELL,56557,185.39,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINESH MUNJAL(HUF),SELL,351726,181.92,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,DIPAN MEHTA SHARE & STOCK BROKERS PVT. LTD.,SELL,85522,177.92,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,G RAMAKRISHNA,SELL,87000,183.04,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,87766,179.78,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,HARBUX SINGH SIDHU,SELL,465049,184.73,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,JAIN AMITESH KUMAR,SELL,69173,186.33,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,JASUBHAI MANILAL THAKKAR,SELL,104200,197.19,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,351007,179.97,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,331665,179.82,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANISH KUMAR ASHKARAN,SELL,66049,185.82,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANISH VIRCHAND LAKHANI,SELL,16000,181.02,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,SELL,132690,177.72,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,287223,178.88,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,SELL,63817,182.15,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MEET TRADELINK,SELL,125552,197.30,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NAGA DURGA HEMALATHA SIRAM,SELL,79000,185.07,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,310270,187.38,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NEPTUNE FINCOT PVT LTD,SELL,154180,182.58,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NIKON FINLEASE PVT. LTD,SELL,88619,176.89,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,SELL,649555,179.54,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,PALAKKUNNATHU SIMON PHILIP,SELL,109558,184.11,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,PATEL PRAKASHBHAI NARSINHBHAI,SELL,192549,196.39,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,PRASHANT JAYANTILAL PATEL,SELL,92654,182.09,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,R APPALA RAJU,SELL,201097,187.36,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,R.M. SHARE TRADING PVT LTD,SELL,56351,179.08,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,RAHUL DOSHI,SELL,45064,196.26,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,RAO GANNE SRINIVASA,SELL,92389,180.70,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,SANJAY BHANWARLAL JAIN,SELL,263779,184.16,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,SMART EQUITY BROKERS PRIVATE LIMITED,SELL,61570,178.42,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,SVS SECURITIES PVT. LTD.,SELL,57764,181.89,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,TOUCHSTONE SECURITIES,SELL,78640,173.95,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,440358,183.04,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,UDEY DUTT ASSOCIATES PRIVATE LIMITED,SELL,90000,195.18,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,URVI INVESTMENT (PROP:JYOTI MEHTA),SELL,163143,180.63,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,VAIBHAV DOSHI,SELL,72520,182.08,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,VIJETA BROKING INDIA PRIVATE LIMITED,SELL,102664,182.96,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,60059,195.27,-
27-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,YES INVESTMENTS VISHAL KISHORE BHATIA,SELL,112000,171.16,-
Post Session Commentary - Oct 27 2009
The Indian markets closed on a down beat note on the anticipation of tightening of monetary policy by Reserve bank of India (RBI). The RBI, which injected huge amount of money in the recent past in order to give a boost to the economy, kept its key policy rates unchanged. The RBI kept the repo rate, reverse repo rate and CRR unchanged at 4.75%, 3.25% and 5% respectively. While it increased the SLR to 25% from 24%. Moreover, it hikes the inflation target to 6.5% from 5%. While it kept the FY10 GDP target unchanged at 6% with upward and the HTM bond ratio at 25%. It also said that there is need to downsize the Govt borrowing programme. However, it aims to contain inflation 4-4.5%. It also said the aggregate deposits to grow 18%. RBI, ended a special repurchase facility for banks and another for the funding needs of non-bank financial companies, mutual funds and housing finance companies effective immediately. It also ended a forex swap facility for banks as well as cut an export credit refinance facility to a pre-crisis level of 15% from 50% with immediate effect.
From the sectoral front, the banking stocks fell as the Country’s Central bank did not announce any hike in the ceiling on the portion of government securities, which the banks can park in held to maturity segment. Moreover, the realty stocks also took a sharp beat as the RBI increased the provisioning for commercial real estate loans to 1 percent from 0.4 percent for standard assets. The telecom stocks fell after Idea Cellular''s Managing Director Sanjeev Aga, said the price war in the teleocom sector which he described as a ''bloodbath'' would cut local call charges, currently at 40 paise a minute, to ''unsustainable'' levels.
After the dismal opening tracking the weakness in the global markets, the domestic markets drifts down further after the announcement of the quarterly monetary policy review by the Reserve Bank of India. The BSE Sensex closed below the 16,400 mark while Nifty just below 4,850 mark. From the sectoral front, Realty (down 6.24%), Metal (5.82%), Bankex (3.82%) and Consumer Durables (3.26%) indices faced the blood bath to close with huge losses.
Among the Sensex pack 23 stocks ended in negative territory and 7 stocks in positive territory. The market breadth indicating the overall health of the market remained weak as 2,281 stocks closed in red while 442 stocks closed in green and 67 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 387.10 points or (2.31%) at 16,353.40 and NSE Nifty closed down by 124.20 points or (2.50%) at 4,846.70. BSE Mid Caps and BSE Small Caps closed with losses of 236.24 points and 334.80 points at 6,157.48 and 7,238.22 respectively. The BSE Sensex touched intraday high of 16,699.09 and intraday low of 16,311.50.
Losers from the BSE Sensex pack are Hindalco Inds (7.92%), Tata Steel (7.26%), Bharti Airtel (7.08%), Reliance Comm (6.61%), DLF (6.58%), ICICI Bank (6.11%), Sterlite Inds (5.46%) and SBI (4.45%).
Gainers from the BSE Sensex pack are Wipro (2.18%), Tata Motors (1.56%), HUL (0.86%), Grasim Inds (0.78%) and Sun Pharma (0.35%).
On the global markets front, the Asian markets that opened before the Indian market, closed in red. Shanghai Composite, Hang Seng, Jakarta Composite, Nikkei Strait Times ended lower by 2.83%, 1.86%, 1.72%, 1.45% and 0.81% at 3,021.45, 22,169.59, 2,425.20, 10,212.46 and 2,694.50 respectively.
European markets, which opened after the Indian market, are trading higher. In Paris the CAC 40 is up by 0.62% at 3,767.71, in Frankfurt DAX index is trading up by 0.46% at 5,668.11 and in London FTSE 100 is higher by 0.53% at 5,219.12.
BSE REALTY indexwas at 4,046.04 down by 269.35 points or by (6.24%) The main losers were Omaxe Ltd down by (9.67%) at Rs.106.55, Housing Dev down by (8.65%) at Rs.340.45, Ansal Infras down by (8.42%) at Rs.69.1, Unitech Ltd down by (7.65%) at Rs.85.65, Parsvnath down by (7.22%) at Rs.114.3,
BSE METAL index was at 14,356.37 down by 886.8 points or by (5.82%) The main losers were Sesa Goa Ltd down by (12.44%) at Rs.276.35, Ispat Indust down by (7.93%) at Rs.20.9, Hindalco In down by (7.92%) at Rs.126.15, Tata Stl down by (7.26%) at Rs.501.3, Jindal Saw down by (6.76%) at Rs.729.1,
BSE BANKEX index was at 9,679.08 down by 384.94 points or by (3.82%) The main losers were Indian Overs down by (8.31%) at Rs.118, Idbi Bank L down by (7.72%) at Rs.121.95, Indus Ind Bk down by (7.1%) at Rs.123.65, Oriental Bk down by (6.8%) at Rs.245.45, Canara Bank down by (6.47%) at Rs.339.5.
BSE FMCG index was at 2,813.06 down by 36.8 points or by (1.29%) The main losers were United Brew down by (6.47%) at Rs.138, Ruchi Soya down by (4.99%) at Rs.84.75, Unitd Spr down by (4.67%) at Rs.999.25, Britania In down by (3.89%) at Rs.1672.75, Colgate Palm down by (3.43%) at Rs.698.85,
BSE AUTO index was at 6,351.65 down by 99.7 points or by (1.55%) The main losers were Escorts Ltd. down by (7.81%) at Rs.105.6, Amtek Auto L down by (6.27%) at Rs.177.95, Apollo Tyre.* down by (4.72%) at Rs.50.45, Mrf Ltd down by (4.13%) at Rs.5519.35, Bharat Forge down by (3.32%) at Rs.256.1,
BSE CD index was at 3,436.60 down by 115.68 points or by (3.26%) The main losers were Gitanjali Ge* down by (5.81%) at Rs.115.1, Blue Star L down by (5.36%) at Rs.342.85, Rajesh Expot down by (3.06%) at Rs.74.55, Titan Ind. down by (2.75%) at Rs.1260.9, Videocon Ind down by (1.33%) at Rs.241.4,
BSE IT index was at 4,504.00 down by 47.63 points or by (1.05%) The main losers were Aptech Ltd down by (17.08%) at Rs.211.65, Niit Ltd down by (9.14%) at Rs.62.1, Moser Baer down by (7.64%) at Rs.80.4, Rolta Ind down by (6.95%) at Rs.174.8, Financ Techn down by (3.39%) at Rs.1189.2.
Market in correction mode
The Indian stock market seems to have taken a breather after almost 100% gains for the indices since March 2009. And the market is probably in a correction phase wherein it has declined by over 6.5% from its high for calendar year 2009 of 17493 made on October 17, 2009. On a day when all the global indices staged a weak performance, Indian market slumped strongly and lost close to 400 points. The day started with the weak overnight US and European closing, each losing close to 1%. Today all the major Asian indices closed in red with loses in the range of 0.14-2.83% each, with China's Shanghai Composite hit the most. However, today, the European indices bucked the global negative trend and opened in positive zone. At the time of writing this report, they were trading with gains in the range of 0.31-0.80% each, while FTSE 100 was trading at 5213 with 22 points or about 0.42% gains. The 1% hike in the statutory liquidity ratio (SLR) by the Reserve Bank of India (RBI) in its quarterly monetary policy 2009-10 dragged the banking stocks down. The impact was doubled with heavy selling in realty and metals space and the Sensex ended the day in red and fell for the second consecutive day with a loss of close to 2.31%.
As expected, the benchmark BSE- 30 (Sensex) opened gap-down at 16699, lower by 42 points to its previous close. The Sensex never saw this level throughout the day and closed 2.31% lower at 16353, however before it recorded a low of 16312. The market ignored the positive cues from the European markets and closed substantially lower to its previous close on the back of 1% SLR hike along with the heavy selling in realty, metals and banking space. Nifty lost 124 points to end the day at 4847. The market breadth was very negative as out of 2,790 stocks traded on the BSE – only 442 stocks advanced, whereas 2,281 stocks declined. Sixty-Seven stocks closed unchanged.
Among the sectoral indices, all the sectoral indices ended the day in red declining by over 1% each. BSE Realty fell the most, by 6.24%, followed by BSE Metal that slid by 5.82%. All other indices ended the session in the range of 1-4% down. However, on the back of the hike in SLR BSE Bankex lost 3.82%. On the stocks’ front, PTC India jumped the most and surged by 6.74% to Rs97.35 followed by Union Bank that rose by 3.22% to Rs256.25 and Wipro that advanced by 2.18% to Rs604.15. While stocks like Godrej Consumer Products, Cadila Healthcare, Dr Reddy’s Laboratories, Tata Motors and HPCL ended the day with gains in the range of 1-2%. Among the losers, Hindalco Industries fell the most by 7.92% to Rs126.15, followed by Tata Steel that fell by 7.26% to Rs501.30 and Bharti Airtel slid by 7.08% to Rs306.60. Stocks like Reliance Communications, DLF, ICICI Bank and Sterlite Industries declined in the range of 5-7%.
On turnover front, Over 2.20 crore shares of Unitech changed hands on the BSE followed by Ispat Industries (1.07 crore shares), Suzlon Energy (0.66 crore shares), Ambuja Cement (0.63 crore shares) and IFCI (0.59 crore shares).
Events outcome
* The RBI keeps the repo rate, reverse repo rate, cash reserve ratio (CRR) unchanged while SLR is hiked to 25% from 24%.
* Madras Cements net profit rises to 49.58%.
* Ipca Lab’s Q2 net profit grew by 75%.
* Cadila Healthcare’s top line grew by 27.7%.
* Wipro's revenues grew by 7.5% sequentially.
* Crompton Greaves’ net profit surges by 47.07%.
* Power Finance Corporation's net profit zooms by 93.70%.
* Tata Steel’s net profit dips by 49% to Rs902.94 crore.
Asian markets tanked on Tuesday
Sensex, Shanghai, Seoul, Sydney book losses as Nikkei, Hang Seng accompanies them
Stock markets in Asian region tumbled on Tuesday, 27 October 2009, witnessing broad-based selling on concerns the recent rally in global equities has outpaced the outlook for earnings and the global economy. Energy and metal stocks bore the brunt of the selling pressure hurt by weakening commodity prices. Exporters came under selling pressure on fears U.S. lawmakers may let a federal homebuyer tax credit expire. Financial stocks fell tracking weakness among their U.S. peers overnight. Investors awaited U.S. GDP data due out later this week for further cues about the near-term direction of the markets.
On Wall Street, stocks were unable to recover as investors reacted to a round of bank downgrades and a strengthening dollar. The Dow Jones Industrial Average lost 104.22 points, or 1.1%, to 9,867.96, while the S&P 500 edged down 12.66 points, or 1.2%, to 1066.94. The Nasdaq gave up 12.62 points, or 0.6%, to 2141.85.
In the commodity market, crude oil traded below $79 a barrel after falling the most in a month as prices rose at a faster pace than a recovery in demand.
Crude oil for December delivery was at $78.79 a barrel, up 11 cents, at 3:18 p.m. Singapore time. Yesterday, it dropped $1.82, or 2.3%, to close at $78.68 a barrel on the New York Mercantile Exchange, the biggest decline since 24 September 2009 and the lowest settlement since 16 October 2009.
Brent crude oil for December settlement was at $77.37 a barrel, up 11 cents, on the London-based ICE Futures Europe exchange at 3:14 p.m. Singapore time. Yesterday it declined $1.66, or 2.1%, to end the session at $77.26 a barrel.
Gold, little changed in London, may rebound from its biggest drop in almost three months as a weaker dollar revives demand for the precious metal as an alternative investment. Gold for immediate delivery added $1.75, or 0.2%, to $1,040.25 an ounce by 8:55 a.m. in London, after earlier gaining as much as 0.5%. December gold futures fell 0.2% to $1,040.60 an ounce on the New York Mercantile Exchange’s Comex division.
In the currency market, US dollar and Japanese yen rebounded strongly overnight on the back of sharp sell off in US stocks. Both currencies pare some gains after a Chinese spokesman said that industrial output might rise 16% in fourth quarter, triggering some risk seeking buying in Asian markets. But after all, Asia equities remain soft and retreat in dollar and yen is so far mild.
The US dollar stayed mostly above the 92-yen line after a fall in stocks and commodities price prompted investors to sell higher yielding currencies for the dollar, lifting it versus the yen as well. The Japanese yen was quoted at 91.9650 against the US dollar.
The Hong Kong dollar was trading at HK$ 7.7501 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
In Sydney trade, the Australian dollar stayed well below recent 14-month peaks, hurt by profit taking in long positions by investors, although buying by funds and others at dips checked a sharper decline. At the local close, the dollar was trading at $US0.9188, recovering from a low of $US0.9125 but still down from yesterday’s close of $US0.9236. It had struck a 14-month high of $US0.9330 late last week.
In Wellington trade, the New Zealand dollar fell rapidly against the greenback early today, dropping back to levels it was at a week ago before its climb to a 15-month high last Thursday around US76.35c. The kiwi was buying US74.62c, having fallen around 1c during the day as the greenback strengthened on the back of falling stock and commodity prices.
The South Korean won ended at 1,184.40 won against the greenback, down 6.8 won from Monday's close of 1177.60 won.
The Taiwan dollar weakened against the greenback. The Taiwan dollar was trading lower against the US dollar at NT$ 32.4800, 0.0460 down from Monday’s close of NT$32. 3940.
In the equity market, Asian shares closed mostly lower after Wall Street's decline, with energy-related stocks hit by a fall in crude oil prices.
In Japan, stocks fell sharply following losses on Wall Street overnight, with financial issues tracking their U.S. peers' decline and resource-related shares down on lower commodity prices. Japanese Nikkei 225 Stock Average index slumped 150.16 points, or 1.45%, to 10,212.46, while the broader Topix declined 15.24 points or 1.67%, to 895.48.
On the economic front, the Finance Ministry upgraded its overall assessment of the Japanese economy for the second straight quarter, the first time since 2004, citing a further rise in manufacturing production. For the July-September quarter, the ministry said that although the economy nationwide ''remains in a difficult situation, it showed some signs of picking up, such as an increase in production activity.’ “The ministry, however, maintained its pessimistic assessment of employment conditions for all 11 regions for the second consecutive quarter.
In Mainland China, equities slide sharply today as investors sold the shares heavily as dollar strengthened overseas and risk appetite wore off. The investors also gave a thumb down to a highly overheated property market in Hong Kong - on concerns that the policy makers in Asia will respond intensely to rising real estate values that threaten to mimic in Asia the U.S. mortgage bubble that roiled the global economy.
The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, declined 2.83% or 88.11 points to close at 3,021.46 points after fluctuating between 3,086.09 and 3,020.49 points. The Shenzhen Component Index on the smaller Shenzhen Stock Exchange fell 3.14% or 402.81 points to close at 12,412.45 points.
In Australia, stock market in Australia extended its losing streak in second straight session, led lower by miners and energy firms as commodities prices weakened. The strength of the US dollar and worries about a recovery in the world economy hit oil, gold and base metals prices, dragging resource stocks down. The benchmark S&P/ASX200 index was down 76.8 points, or 1.6%, at 4753.5, while the broader All Ordinaries fell 77.7 points, or 1.6%, to 4754.9.
On the economic front, business confidence in Australia rose to a 7-year high in the September quarter. As per a survey, published by National Australia Bank today, NAB’s business confidence index increased by 20 points to plus-16, the highest reading since Q1 of 2002. The index registered minus-4 in the June quarter. The bank's index of business conditions also improved, adding 14 points to a reading of plus-5, compared to minus nine in Q1.
In New Zealand, stock market toppled, resuming trade after the long weekend on Tuesday. The share market declined following losses on Wall Street amid fresh concerns about economic recovery. The NZX50 declined 0.57% or 18.40 points to 3192.47. The NZX 15 decreased 0.72% or 41.45 points to close at 5783.15.
On the economic front, New Zealand Prime Minister John Key said the nation’s currency is overvalued and the central bank is unlikely to raise interest rates this year because inflation is contained. Meanwhile, the New Zealand dollar is expected to continue to fall this week as speculation that the US Federal Reserve will tighten monetary policy earlier than expected stokes the appeal of the greenback and appetite for higher-yielding, or riskier, assets dims.
In South Korea, stocks closed lower as institutional investors dumped tech and bank shares following overnight falls in U.S. markets. The benchmark Korea Composite Stock Price Index (KOSPI) fell 7.58 points to 1,649.53.
In Taiwan, stock markets in Taiwan were unable to sustain recent gains as went back to losses, despite of positive economic data conforming an upheaval in consumer confidence, as construction and cement sector outstripped gains posted by tourism and electronics sector. The benchmark Taiex share index snapped its winning streak as it finished lower by 11.06 points or 0.14% in a day, closing the day at 7657.34.
On the economic front, Taiwan’s consumer confidence in October rose to its highest level in 17 months, another indication that the country's economy may be pulling out of a prolonged slump set off by the global economic meltdown.
According to the results of the monthly survey released by National Central University's Research Center for Taiwan's Economic Development (RCTED), the consumer confidence index for October stood at 60.56, up 4.11 points from the September level and the highest since June 2008.
In Philippines, the stock market closed lower in line with the regional market as investor's took cue from the losses on Wall Street overnight, which in turn led to selling of key heavy weight stocks. However, there was some buying seen in the holdings firms stocks and financial stocks. There are some concerns about the rising inflationary pressures as the Philippine central bank recently said the risk of faster inflation may be narrowing the scope for maintaining interest rates too low for too long. At the final bell, the benchmark index PSEi lost 0.19% or 5.79 points to 2,935.74, while the All Shares index declined 0.31% or 5.83 points to 1,846.71.
On the economic front, merchandise imports continued to fall in August, although at a softer annual decline of 28.3% against the previous month's 31.6% contraction, on hefty drops in imports of electronics and petroleum products. The value of imports in August was at $3.62 billion, down from $5.04 billion recorded last year, the National Statistics Office reported.
The total external trade in goods reached $52.012 billion for January to August 2009, a 30.6 % drop from $74.946 billion recorded during the same 8-month period in 2008. Total imports posted a 30.8 % annual decrease from $40.492 billion to $28.007 billion. Total exports likewise plunged by 30.3 % from $34.454 billion in January to August of 2008 to $24.005 billion. Thus, the balance of trade in goods (BOT-G) for the Philippines recorded a $4.002 billion deficit in 2009 from $6.037 billion deficit in the same 8-month period last year.
In India, the key benchmark indices tumbled after the Reserve Bank of India started to withdraw emergency liquidity support measures that were implemented in the aftermath of the global financial crisis. The RBI had 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. The central bank warned of possible asset price bubbles, raised banks' provisioning requirements for commercial real estate loans and lifted inflation forecast. The BSE 30-share Sensex was down 387.10 points or 2.31% to 16,353.40. The S&P CNX Nifty was down 124.20 points or 2.50% to 4,846.70.
The Reserve Bank kept its benchmark lending and borrowing rates on hold at a quarterly monetary policy review on today. It also kept steady cash reserve ratio at 5% but raised the statutory liquidity ratio to 25% from 24% with effect from 7 November 2009. Funds in CRR fetch no return for banks, while returns from SLR are small. The central bank said an accommodative monetary policy stance is required as the ongoing economic recovery was "fragile"
The RBI kept 2009/10 GDP forecast at 6% with upside bias and said it sees modest decline in agriculture. The RBI raised projection of inflation to 6.5% with an upside bias at end March 2010 from earlier 5%. The RBI said bank credit remained sluggish and it cut its forecast for adjusted non-food credit growth in 2009/10 to 18% from 20%.
Elsewhere, Malaysia's Kula Lumpur Composite index was trading higher at 1260.30 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2425.20. Singapore’s Straits Times Index ended lower at 2,694.50.
In other regional market, European shares rose modestly, as BP led a strong performance from the oil and gas sector, with the move offsetting more losses for banks. The U.K. FTSE 100 index rose 0.4% or 20.38 points to 5,212, the French CAC-40 index rose 0.4% or 13.40 points to 3,758 and the German DAX index advanced 0.3% or 16.87 points to 5,659.
Telecom stocks hammered
Three telecom stocks fell 4% to 7% on BSE, on concerns about the price war in the sector.
Idea Cellular (down 4.14% to Rs 54.45), Bharti Airtel (down 6.65% to Rs 308) and Reliance Communication (down 7% to Rs 207.40), edged lower.
Meanwhile, the BSE Sensex was down 414.62 points, or 2.48%, to 16,325.88.
Idea Cellular's managing director Sanjeev Aga on Monday, 26 October 2009 said, the price war in the telecom sector which he described as a 'bloodbath' would cut local call charges, currently at 40 paise a minute, to 'unsustainable' levels.
Idea Cellular had underperformed the market over the past one month till 26 October 2009, falling 25.02% as compared to the Sensex's 0.28% rise. It had also underperformed the market in the past one quarter, declining 30.35% as compared to the Sensex's return of 8.85%.
Reliance Communication had underperformed the market over the past one month till 26 October 2009, declining 26.05% as compared to the Sensex's 0.28% rise. It had also underperformed the market in the past one quarter, falling 19.29% as compared to the Sensex's return of 8.85%.
Bharti Airtel had underperformed the market over the past one month till 26 October 2009, falling 20.37% as compared to the Sensex's 0.28% rise. It had also underperformed the market in the past one quarter, declining 22.83% as compared to the Sensex's return of 8.85%.
Idea Cellular's net profit surged 81.63% to Rs 273.15 crore on 20.23% rise in net sales to Rs 2760.61 crore in Q2 September 2009 over Q2 September 2008. The company declared the results on Monday, 26 October 2009.
Reliance Communication's net profit rose 6.51% to Rs 370 crore on 5.36% fall in net sales to Rs 3006.13 crore in Q1 June 2009 over Q1 June 2008. The company will declare its Q2 September 2009 results on 30 October 2009.
Bharti Airtel's net profit rose 31.30% to Rs 2687.51 crore on 14.54% rise in net sales to Rs 9040.51 crore in Q1 June 2009 over Q1 June 2008. The company will declare its Q2 September 2009 results on 30 October 2009.
Den Networks IPO Review
Incorporated in July 2007, Den Networks is promoted by Sameer Manchanda, a veteran in the television industry. It is one of the largest national cable television companies in India, distributing analog and digital cable television services as per the MPA Report 2009. The company has analog cable presence in 76 cities across India and digital services in 37 cities across India. Den Networks currently provides cable television services in the National Capital Region of Delhi and Uttar Pradesh, Rajasthan, Maharashtra, Gujarat, Karnataka, Haryana, Madhya Pradesh and Kerala. The company has obtained an all-India Internet services provider (ISP) license and recently commenced a limited roll-out of broadband internet services in select areas, which it intends to expand in all of the other cities in which it operates. As per the MPA Report 2009, the company's reach is approximately 10 million analog homes and 3,00,000 digital homes.
Den Networks has been increasing its reach through acquisition of multi-system operators (MSO). The company has majority interest in 62 MSOs. It uses local cable operators (LCOs) to provide the "last mile" cable link to reach its subscribers. Den Network currently offers up to 180 channels through its digital cable television service compared with up to 100 channels through its analog cable television service. The company plans to commence offering digital cable subscribers additional value-added services such as pay-per-view services, interactive educational programmes, personal video recording and mosaic viewing. It also operates between one to three own brand television channels from each of its head-ends, which are telecast exclusively on its cable distribution network.
In January 2008, Den Networks entered into a 50:50 joint venture agreement with Star. Star-Den will act as content aggregator and currently has the exclusive right to distribute 23 television channels, including the entire Star group of channels, the entire Disney group of channels, select Network18 channels, the entire Times Group of channels, and MGM to providers of various television distribution platforms such as cable television, DTH satellite television and IPTV in India, Bhutan and Nepal. The company's share of revenue in the joint venture (JV) was Rs 364.85 crore and profit after tax (PAT) Rs 2.32 crore in the fiscal ended March 2009 (FY 2009). Revenue was Rs 107.64 crore and PAT Rs 2.65 crore in the quarter ended June 2009.
The net proceeds of the issue are to be utilized for development of cable television infrastructure & services, for development of cable broadband services in Kanpur Delhi, NCR and Bangalore, repayment of debt, and acquisition of content.
Strengths
* As per the FICCI KPMG Report 2009, the media & entertainment industry is projected to grow at a CAGR of 12.5% to Rs 1052 billion by end of calendar year (CY) 2013 from CY 2009. The television industry is expected to grow at CAGR of 14.5% to Rs 472.6 billion. As per PWC's India Entertainment & Media Outlook 2009 Report, the TV distribution segment grew at CAGR of 18.8% to Rs 150 billion over CY 2004-2008, contributing to 60% of the total television industry revenues of Rs 244.7 billion in CY2008. The television industry expected to grow at CAGR of 11.4% to Rs 420 billion over CY 2009-13. The distribution pie is expected to grow at CAGR of 10.8% to Rs 250 billion by end CY 2013.
* The number of TV owning households would grow to 149 million by end CY2013. The cable households will increase from 72 million in CY 2008 to 90 million in CY 2013. Of this, the number of digital cable homes will increase from 2 million in CY 2008 to 35 million in CY 2013. The increased adoption of digitization will mean higher declaration leading to higher revenue.
* There were 623,000 cable broadband Internet subscribers, or 11.3% of total Indian broadband Internet subscribers, in India in 2008. The MPA Report 2009 predicts that the number of cable broadband Internet subscribers will increase to approximately 2.30 million, or 16.5% of all Indian broadband Internet subscribers, by CY2013.
Weaknesses
* The television distribution is highly competitive and is often subject to rapid and significant changes in the marketplace, technology and regulatory and legislative environments. The market is very fragmented with approximately 50,000 LCOs and 1,000 MSOs. Also, with increased adoption of direct-to-home (DTH), the DTH subscriber base is expected to grow from 10 million in CY 2008 to 28 million in CY 2013.
* The cable distribution industry is prone to under-reporting by LCOs the number of subscribers, thereby impacting revenue.
* LCOs are the last-mile link that connects the company's cable lines to the homes of the subscribers. The affiliation agreements are typically valid for one year. However, an LCO may terminate the agreement on 30 days' notice. Also, the service quality of LCOs will impact subscriber preference.
Valuation
The promoters of Den Networks had entered into an agreement with the IL&FS Investors not to price the IPO below the conversion price of cumulative convertible preference shares (CCPS) issued to the latter on 21 January 2008 and 17 February 2009. The conversion price of the CCPS was Rs 146.94–161.47 per share. These were converted on 27 July 2009. On being asked the basis of arriving at the issue price of Rs 195 – Rs 205, the lead manager was prompt is saying the company has issued shares at Rs 190 to other investors on 29 July 2009.
At the issue price of Rs 195– Rs 205, EV/sales comes to 3.1– 3.3 times. However, excluding the share of revenue of the Star–Den JV, thereby keeping just the cable distribution revenue, the EV/sales comes to 6.4 – 6.8 times. Wire & Wireless India is trading at EV/sales of 4.2 times.
Realty, bank stocks lead 2.3% Sensex slide as RBI raises inflation forecast
The key benchmark indices tumbled after the Reserve Bank of India withdrew emergency liquidity support measures that were implemented in the aftermath of the global financial crisis. The RBI had 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. The BSE 30-share Sensex plunged 387.10 points or 2.31%. The market extended losses for the second straight day.
The central bank warned of possible asset price bubbles, raised banks' provisioning requirements for commercial real estate loans and lifted inflation forecast. The central bank said the precise challenge for the Reserve Bank of India is to support the economic recovery process without compromising on price stability. Growth drivers warrant a delayed exit, while inflation concerns call for an early exit, it said. Premature exit will derail the fragile growth, but a delayed exit can potentially engender inflation expectations, the RBI said.
Bank stocks fell as the RBI did not relax mark-to-market rules for bank's debt holdings. The market has been agog with talks of the central bank hiking the ceiling on the portion of government securities that banks can park in held-to-maturity (HTM). Another trigger for the sharp slide in banking stocks was the central banks' decision to streamline provisioning requirement on non-performing assets. The RBI asked banks to ensure by September 2010 that the total provisioning coverage against non-performing or bad loans aren't less than 70% of the outstanding amount.
Telecom stocks declined sharply on concerns about price war. Realty and metal stocks tumbled. India's largest steel maker by sales Tata Steel fell sharply after poor Q2 result. Index heavyweight Reliance Industries drifted lower.
Intraday volatility was immense. The market cut losses after an initial fall caused by weak Asian stocks. However, the intraday recovery proved short-lived. The market weakened soon after the central bank at 11:15 IST said at the time of announcing its quarterly policy review that an exit from an easy monetary policy has begun. The market extended losses in volatile trade later.
Volatility may remain high on the bourses this week as traders rollover positions in the derivatives segment from October 2009 series to November 2009 series ahead of the expiry October 2009 contracts on Thursday, 29 October 2009.
The Reserve Bank kept its benchmark lending and borrowing rates on hold at a quarterly monetary policy review on Tuesday, 27 October 2009. It also kept steady cash reserve ratio (CRR) at 5% but raised the statutory liquidity ratio to 25% from 24% with effect from 7 November 2009. Funds in CRR fetch no return for banks, while returns from SLR are small.
The RBI kept 2009/10 GDP forecast at 6% with upside bias and said it sees modest decline in agriculture. The RBI raised projection of inflation to 6.5% with an upside bias at end March 2010 from earlier 5%.
The RBI said it will continue to monitor the price situation in its entirety and will take measures as warranted by the evolving macroeconomic conditions swiftly and effectively. It said it is mindful of its fundamental commitment to price stability. The central bank said the current large overhang of liquidity could engender inflation expectation even if credit demand remains subdued.
The central bank said the policy dilemma for India is different in some important respects from that of advanced economies as also other emerging market economies. It said India is confronted with an upturn in inflation, with rising headline inflation and stubbornly elevated consumer price inflation. According to RBI, most advanced economies and emerging market economies do not face an immediate risk of inflation. In several advanced economies, the concerns are about a possible deflation which are just about waning, it said
Effective immediately, the RBI ended a special repurchase facility for banks and another for the funding needs of non-bank financial companies, mutual funds and housing finance companies. It also ended a forex swap facility for banks, and cut an export credit refinance facility to a pre-crisis level of 15% from 50% with immediate effect.
The central bank said the collateralised borrowing and lending obligation liabilities of banks would be subject to cash reserve ratio requirements from 21 November 2009.
"The balance of judgement at the current juncture is that it may be appropriate to sequence the exit in a calibrated way so that while the recovery process is not hampered, inflation expectations remain anchored," the RBI said in its quarterly review. "The 'exit' process can begin with closure of some special liquidity support measures," it said.
The RBI said bank credit remained sluggish and it cut its forecast for adjusted non-food credit growth in 2009/10 to 18% from 20%. "Banks are urged once again to step up their efforts towards credit expansion while preserving credit quality which is critical for revival of growth," it said. The central bank has lowered the money supply growth projection for 2009-2010 to 17% from 18%.
The RBI said a large amount of liquidity in the system could potentially result in an unsustainable asset price build-up. "There is already some evidence of excess liquidity feeding through asset prices with potential financial stability concerns. Further, capital flows have resumed. Given the limitations of the economy's current absorptive capacity, these flows will add to the overall domestic liquidity, further fuelling the asset price build-up. Large capital inflows and asset price inflation have the potential to feed on each other," it said.
The Reserve Bank of India's monetary policy review, announced on Tuesday, is in line with the government's thinking, Finance Minister Pranab Mukherjee said. Finance secretary Ashok Chawla said on Tuesday, one percentage point increase in banks' statutory liquidity ratio (SLR) by Reserve Bank of India (RBI) on Tuesday would not impact banks much.
European shares rose on Tuesday, with energy stocks taking the lead after oil heavyweight British Petroleum's third-quarter results beat forecasts. The key benchmark indices in France, Germany and UK rose by between 0.28% to 0.5%.
Asian stocks declined on Tuesday as raw material prices fell and Hong Kong enacted measures to curtail property speculation. Down payments for homes priced above HK$20 million ($2.58 million) will be raised to 40% from 30%, Hong Kong Monetary Authority Chief Executive Norman Chan said. Key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan, were down by between 0.14% to 2.83%.
Prices for the luxury property in Hong Kong have exceeded their former historical peak, set in 1997. Prices in the mass market, meanwhile, have risen about 30% since the start of the year, matching highs seen in the run up to the global financial crisis last year, but they remain below their 1997 levels.
Trading in US index futures indicated a flat opening of US stocks on Tuesday, 27 October 2009.
US markets retreated on Monday, led by financials and commodities, as the dollar rebounded. Financials were the day's biggest decliner after Rochdale Securities analyst Richard Bove downgraded three of the industry's bigger names- Suntrust, Fifth Third Bancorp, and US Bancorp. The Dow Jones dropped 104.22 points, or 1.05%, to 9,867.96. The S&P 500 Index shed 12.65 points, or 1.17%, to 1,066.95. The Nasdaq Composite Index fell 12.62 points, or 0.59%, to 2,141.85.
Back home, 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 recently 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 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.
The BSE 30-share Sensex shed 387.10 points or 2.31% to 16,352.40. The Sensex fell 41.41 points at the day's high of 16,699.09 in early trade. The barometer index fell 429 points at the day's low of 16,311.50 in late trade.
The S&P CNX Nifty fell 124.20 points or 2.5% to 4,846.70. Nifty October 2009 futures were at 4,842, at a discount of 4.70 points as compared to the spot closing of 4,846.70. Turnover in NSE's futures & options (F&O) segment spurted to a record Rs 1,21,614.13 crore from Rs 85,283.71 crore on Monday, 26 October 2009.
The market breadth, indicating the overall health of the market was weak. On BSE, 431 shares advanced as compared with 2281 that declined. A total of 67 shares remained unchanged.
Among the 30-member Sensex pack, 23 fell while rest rose.
BSE clocked a turnover of Rs 5899 crore, higher than Rs 4978.15 crore on Monday, 26 October 2009.
From a 17 month closing high of 17,326.01 on 17 October 2009, the Sensex has lost 972.61 points or 5.61% in six trading sessions to current 16,353.40. Yet, with foreign funds making heavy purchases, the Sensex is up 6706.09 points or 69.51% in calendar year 2009, as on 27 October 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8193 points or 100.39%, as on 27 October 2009. FII inflow in the calendar year 2009 totaled Rs 67,931.20 crore (till 26 October 2009).
Coming back to today's trade, the BSE Mid-Cap index fell 3.69% and the BSE Small-Cap index fell 4.42%. Both the indices underperformed the Sensex.
Sectoral indices on BSE displayed mixed trend. The BSE Realty index (down 6.24%), the BSE Metal index (down 5.82%), the BSE Bankex (down 3.82%), the BSE Consumer Durables index (down 3.26%), the BSE Teck index (down 2.69%), underperformed the Sensex.
The BSE Healthcare index (down 1%), the BSE IT index (down 1.05%), the BSE FMCG index (down 1.29%), the BSE Oil & Gas index (down 1.51%), the BSE Auto index (down 1.55%), the BSE Capital Goods index (down 1.84%), the BSE Power index (down 1.95%), the BSE PSU index (down 2.22%), outperformed the Sensex.
Telecom stocks fell after Idea Cellular's Managing Director Sanjeev Aga, said on Monday the price war in the teleocom sector which he described as a 'bloodbath' would cut local call charges, currently at 40 paise a minute, to 'unsustainable' levels. Idea Cellular fell 4.4% extending Monday's 3.49% fall even as net profit rose 81.62% to Rs 273.15 crore in Q2 September 2009 over Q2 September 2008. The result hit the market during trading hours on Monday.
India's largest wireless operator by sales Bharti Airtel fell 7.08%. India's second- largest wireless operator by sales Reliance Communications fell 6.61%. The company said on Monday it does not have to pay any additional licence or spectrum fee to the government nor had it inflated its revenues. The statement came after the company said it had completed a "preliminary review" of a report issued by a government-appointed auditor which had accused it of various malpractices.
Energy major Reliance Industries fell 1.25% extending recent losses as partner Hardy Oil said late last week a D9 well will be plugged and abandoned. Hardy holds a 10% participating interest in the D9 block, which is located in the Krishna Godavari basin on the east coast of India. Reliance Industries is the operator and holds a 90% stake.
The continued pressure on gross refining margins, or the difference between the price of crude and the price of refined petroleum products, is seen weighing on the company's bottom-line in Q2 September 2009, in spite of higher gas production and refining throughput. RIL unveils Q2 results on Thursday, 29 October 2009.
A total of eight brokerages expect a between a 9% fall to a 1.4% rise in RIL's net profit at between Rs 3752.10 crore to Rs 4178 crore in Q2 September 2009 over Q2 September 2008. Their expectations peg a between 23% fall to a rise of 19.8% in revenue at between Rs 34292.90 crore to Rs 53667.70 crore in Q2 September 2009 over Q2 September 2008.
Meanwhile, RIL told the Supreme Court, last week, it had no knowledge of the pact between its chairman Mukesh Ambani and his younger brother Anil.
Mukesh Ambani-controlled Reliance Industries, India's top conglomerate, is fighting with Reliance Natural Resources, led by younger brother Anil Ambani, over the terms of a deal to sell gas to Reliance Natural at below the price set by the government. Reliance Industries has been presenting initial arguments in the case before the Supreme Court since 20 October 2009, saying the private deal between the Ambani brothers is not binding on the company, and it can sell the gas only at the government-approved price.
The government, which has the power to decide who can buy gas and at what price, had filed an application asserting it is the rightful owner of the disputed gas.
Anil Ambani's Reliance Natural Resources claims the contract is valid and wants the court to direct Reliance Industries to supply it with 28 mmscmd of gas for 17 years at almost half the government-set price of $4.2 per mmBtu.
The Supreme Court will resume hearing the case today, 27 October 2009, with Reliance Industries expected to conclude its initial arguments by Thursday, 29 October 2009. The court will then hear arguments by Reliance Natural Resources, following which it will consider a petition by the government to become a party to the dispute.
Metal stocks fell on profit taking after recent strong gains. Hindustan Zinc, National Aluminum Company, Hindalco Industries fell by between 0.38% to 7.92%.
India's largest copper maker by sales Sterlite Industries fell 5.46%. The company recently 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.
Steel Authority of India (Sail) fell 3.02%. The steel minister said last week the government has approved a follow-on public offering of 20%. The government holds 85.82% stake in Sail.
India's largest steel maker by sales Tata Steel fell 7.26% as net profit fell 49.49% to Rs 902.94 crore in Q2 September 2009 over Q2 September 2008. The results hit the market during market hours today.
Bank stocks fell after Reserve Bank held key rates unchanged. India's largest private sector bank by operating income ICICI Bank fell 6.11% after Singapore's Temasek cut its stake to 5.76% as of 30 September 2009 from 7.6% as of end of June 2009. Temasek said in a statement in Singapore that any stake sales are part of regular moves to review and rebalance its portfolio.
India's largest bank by branch network State Bank of India fell 4.45%. State Bank of India (SBI) announced on 24 October 2009 that it has concluded the issue of $750 million fixed rate senior notes having a maturity of 5 years at a coupon of 4.50% under the Medium Term Notes (MTN) Programme in the form of Regulation S Global Note. The bonds have been issued through the bank's London branch as of 23 October 2009
India's second largest private sector bank by net profit HDFC Bank fell 1.01% as its ADR fell 3.31% on Monday. The bank's net profit rose 30.2% to Rs 687.46 crore in Q2 September 2009 over Q2 September 2008. The results 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 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.
Realty stocks fell after the central bank raised the provisioning requirement for banks' advances to the commercial real estate sector classified as 'standard assets' from the present level of 0.40% from 1%. Indiabulls Real Estate,DLF, Ackruti City, Unitech, Omaxe fell by between 2.82% to 9.67%.
In view of large increase in credit to the commercial real estate sector over the last one year and the extent of restructured advances in this sector, it would be prudent to build cushion against likely non-performing assets (NPAs), the central bank said.
Realty stocks had risen sharply over the past few weeks on 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. The housing market had slumped last year amid a global credit crunch and buyers fearing job losses
India's largest drugmaker by sales Ranbaxy Laboratories fell 3.72% on profit taking. The company during trading hours on Monday reported turnaround Q3 results. The company reported net profit of Rs 186.08 crore in Q3 September 2009 as against a net loss of Rs 352.93 crore in Q3 September 2008.
Ranbaxy Laboratories CEO and Managing Director Atul Sobti said revenue growth in some strategic geographical markets and a sharp focus on cost efficiency, were the underlying themes in the third quarter. With good achievements in these fronts, the company is confident that it is on the path to recovery.
Rate sensitive auto stocks fell on profit taking. Hero Honda Motors fell 0.19% even as net profit jumped 95% to Rs 597.14 crore on 26.8% rise in revenue to Rs 4059.44 crore in Q2 September 2009 over Q2 September 2008. The company announced result after market hours on 21 October 2009.
India's largest car maker by sales Maruti Suzuki India fell 2.37% even after net profit rose 92.5% to Rs 570 crore on 46.6% rise in sales to Rs 7080.67 crore in Q2 September 2009 over Q2 September 2008. The company announced the results on Saturday, 24 October 2009
Maruti said the company remains cautiously optimistic with regard to volume growth in the near future. It said margins in the future may be under pressure due to hardening of commodity prices and strengthening of the Japanese yen. The company said it continues to focus on cost optimization.
India's largest tractor maker by sales Mahindra & Mahindra fell 2.32%. 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 fell 1.26%. 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.
But, India's largest commercial vehicle maker by sales Tata Motors rose 1.56% after its net profit jumped 110.13% to Rs 729.14 crore on 11.87% rise in total income to Rs 8399.75 in Q2 September 2009 over Q2 September 2008. The results were announced after market hours on Monday.
Tata Motors said its operating margins surged 580 basis points at 13.4% in Q2 September 2009 over Q2 September 2008. Stable input costs and accelerated cost reduction efforts boosted margins, the company said. It said higher volumes and improved realizations contributed to growth in revenue.
The company said a change in accounting policy with respect to foreign exchange transaction contributed to a massive 153.3% surge in profit before tax (PBT) to Rs 906.85 crore in Q2 September 2009 over Q2 September 2008. The year-on-year growth in PBT would have been much lower at 49.7% if the company had followed the current accounting policy with respect to foreign exchange transaction in Q2 September 2008, Tata Motors said.
Sales volume in the domestic market rose on the back of revival of the industrial activity in the country, improvement in liquidity in the financial system, introduction of new products and new variants of existing products. However, exports continue to be impacted by slowdown in the company's prime export markets and also due to volatility in exchange rates.
Tata Motors said its market share in the domestic commercial vehicles sector surged to 65.5% in Q2 September 2009 from 62% in Q2 September 2008. In the passenger car segment, Tata Motors said it has commenced deliveries of British brands Jaguar and Land Rover in the domestic market which has received encouraging response.
India's largest cigarette maker by sales ITC fell 1.68% on profit taking after a recent strong rally triggered by robust Q2 results. Net profit rose 25.81% to Rs 1009.91 crore in Q2 September 2009 over Q2 September 2008. The result which hit market during market hours on Friday 23 October 2009, surpassed market expectations.
A surge in profit margins and a decent growth in revenue boosted the bottom line. ITC's operating profit margin surged to 36.59% in Q2 September 2009 from 31.4% in Q2 September 2008
Among other FMCG stocks, Nestle India, Marico, United Spirits, Tata Tea, Britannia Industries, fell by between 0.1% to 4.67%.
Construction stocks fell on profit taking. Hindustan Construction Company, Nagarjuna Construction Company Era Infra Engineering, Gayatri Projects fell by between 3.74% to 4.84%.
Construction shares rose steadily over the past few days on the government's thrust on the infrastructure sector. 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.
An expected fall in cement prices in the coming months due to capacity new capacity addition may boost margins for construction firms as cement is a key raw material
Jaiprakash Associates fell 3.71% extending recent steep losses. Net profit rose 327.9% to Rs 870.19 crore on 53% rise in sales to Rs 1824.26 crore in Q2 September 2009 over Q2 September 2008. The company announced result after market hours on 21 October 2009. The company also announced 1:2 bonus issue at the time of announcing Q2 results
India's largest engineering and construction firm by sales Larsen & Toubro fell 1.43%. The company announced on Monday sale of its shares in Voith Paper Technology India (VPTIL) to its long term joint venture partner Voith GmbH, Heidenheim, Germany. VPTIL is a 50:50 joint venture partner between L&T and Voith GmbH providing design, consultancy and other value added services to Indian paper industry .
L&T's net profit rose 26.1% to Rs 580.4o crore on 3.54% rise in total income to Rs 8136.39 crore in Q2 September 2009 over Q2 September 2008. The result hit the market during trading hours on 22 October 2009.
UltraTech Cement fell 1.03%. The stock fell sharply in the past few days after the company issued a cautious outlook at the time of announcing Q2 results on 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.
Among other cement stocks, ACC, Ambuja Cements, Birla Corporation and ACC fell by between 0.33% to 3.51%.
IT stocks fell on profit taking. However, a weak rupee cushioned the fall. India's largest software services exporter TCS fell 0.49%. 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.
IT bellwether Infosys Technologies fell 1.29% as its ADR fell 0.7% on Monday. 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 foreign brokerage said in a recent note that it expects 2010 IT budgets to be strong given a significant pent-up demand.
India's third largest IT exporter by sales Wipro rose 2.18% on better than expected results. As per consolidated Indian GAAP results, the company recorded 19% rise in net profit to Rs 1162 crore in Q2 September 2009 over Q2 September 2008. The net profit rose 14% to Rs 1162 crore in Q2 September 2009 over Q1 June 2009. The results hit the market before trading hours today
Wipro said order book has gone up and it is seeing a strong second half as pricing stabilises. Wipro expects its IT services revenue to rise 3.8% to 5.7% to $1.09-$1.11 billion in Q3 December 2009 ovfrom Q2 September 2009
The partially convertible rupee was trading at 46.83/84, weaker than Monday's close of 46.645/655 per dollar. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Cals Refineries clocked highest volume of 2.92 crore shares on BSE. Unitech (2.2 crore shares), ThinkSoft Global (1.21 crore shares), Ispat Industries (1.06 crore shares) and Zee News Enterprises (0.68 crore shares) were the other volume toppers in that order.
State Bank of India clocked highest turnover of Rs 370.40 crore on BSE. ThinkSoft Global (Rs 237.78 crore), Unitech (Rs 188.93 crore), Tata Steel (Rs 181.75 crore) and Reliance Industries (Rs 177.83 crore) were the other turnover toppers in that order
Astec Life Sciences, Den Networks Grey Market Premium
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Indiabulls Power | 45 | +/- 2 to 3 |
| DEN Network Ltd. | 195 to 205 | 7 to 7.50 |
| Astec Life Science | 77 to 82 | 3 to 3.50 |
Market may fall on weak Asia
The market may extend Monday's (26 October 2009)'s fall on weak Asia. Investors will keenly watch quarterly monetary policy review by the central bank today, 27 October 2009. Volatility may remain high as traders may roll over positions in the derivatives segment from October 2009 series to November 2009 series ahead of the expiry October 2009 contracts on Thursday, 29 October 2009.
The Reserve Bank of India (RBI) on Monday said the economic outlook is a mix of recovery prospects and downside risks, and managing the trade-off between supporting growth and reining in inflation poses a complex policy challenge. It said anchoring inflation expectations in the face of sustained high inflation in essential commodities would be a key challenge and cautioned that weak private consumption and investment demand continued to be a drag on faster recovery.
The RBI said delayed withdrawal of the annual monsoon augured well for winter wheat and oilseeds crops due to high moisture retention in the soil, but this year's deficient summer monsoon could hinder faster recovery.
Analysts say a 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 2009 at 10.4%. Inflation based on the wholesale price index (WPI) rose 1.21% in the year through 10 October 2009, higher than previous week's annual rise of 0.92%, data released by the government on 22 October 2009 showed.
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 centred around 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 Tuesday, 27 October 2009.
A section of market, however, expects the RBI to raise the cash reserve ratio (CRR), the proportion of deposits that banks keep with the central bank, to tame inflationary pressures in the economy. A possibility of a hike in the statutory liquidity ratio (SRL) cannot be ruled out either. In November 2008, the RBI had reduced the SLR by one percentage point to 24% - its first move in 11 years - as part of its measures to boost liquidity to cushion the impact of the global credit crisis after Lehman Brother's collapse. SLR is the minimum share of bank deposits to be held in approved government securities.
ICICI Bank will be in action after Singapore's Temasek cut its stake in ICICI to 5.76 % as of 30 September 2009 from 7.6 % end of June 2009.
India's third largest IT exporter by sales Wipro will be in action as per consolidated Indian GAAP, company recorded 19% year on year and 14% sequential growth in profit after tax at Rs 1162 crore. Rsults were announced before market hours on Tuesday.
India's largest commercial vehicle maker by sales Tata Motors will be in action after its net profit jumped 110.13% to Rs 729.14 crore on 11.87% rise in total income to Rs 8399.75 in Q2 September 2009 over Q2 September 2008. Rsults were announced after market hours on Monday.
Tata Motors said its operating margins surged 580 basis points at 13.4% in Q2 September 2009 over Q2 September 2008. Stable input costs and accelerated cost reduction efforts boosted margins, the company said. It said higher volumes and improved realizations contributed to growth in revenue.
The company said a change in accounting policy with respect to foreign exchange transaction contributed to a massive 153.3% surge in profit before tax (PBT) to Rs 906.85 crore in Q2 September 2009 over Q2 September 2008. The year-on-year growth in PBT would have been much lower at 49.7% if the company had followed the current accounting policy with respect to foreign exchange transaction in Q2 September 2008, Tata Motors said.
Sales volume in the domestic market rose on the back of revival of the industrial activity in the country, improvement in liquidity in the financial system, introduction of new products and new variants of existing products. However, exports continue to be impacted by slowdown in the company's prime export markets and also due to volatility in exchange rates.
Tata Motors said its market share in the domestic commercial vehicles sector surged to 65.5% in Q2 September 2009 from 62% in Q2 September 2008. In the passenger car segment, Tata Motors said it has commenced deliveries of British brands Jaguar and Land Rover in the domestic market which has received encouraging response.
India's largest steel maker by sales Tata Steel unveils its Q2 September 2009 result today
Reliance Power, Reliance Natural Resources, Ispat, Jet Airways, Kingfisher, Kotak Mahindra Bank, Crompton Greaves, Dewan Housing, Dish TV, Everest Kanto, Fortis Healthcare, GMR Industries, Gokaldas Exports, HMT, IFCI, Lanco Infratech among others will announce their Q2 September 2009 result today.
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.
Asian stocks declined, on Tuesday as raw- material prices fell and Hong Kong enacted measures to curtail property speculation. Down payments for homes priced above HK$20 million ($2.58 million) will be raised to 40 % from 30 %, Hong Kong Monetary Authority Chief Executive Norman Chan said. The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan fell by between 0.64% to 1.57%.
US markets retreated on Monday, led by financials and commodities, as the dollar rebounded. Financials were the day's biggest decliner after Rochdale Securities analyst Richard Bove downgraded three of the industry's bigger names- Suntrust, Fifth Third Bancorp, and US Bancorp. The Dow Jones dropped 104.22 points, or 1.05%, to 9,867.96. The S&P 500 Index shed 12.65 points, or 1.17%, to 1,066.95. The Nasdaq Composite Index fell 12.62 points, or 0.59%, to 2,141.85.
Back home, the key benchmark indices fell in choppy trade on Monday as caution prevailed ahead of the quarterly monetary policy review by the central bank on Tuesday, 27 October 2009.
As per provisional data, foreign funds on 26 October 2009, sold shares with a net Rs 2.74 crore. Domestic funds offloaded equities worth a net Rs 171.16 crore.
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 last week 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.
Subscribe to:
Posts (Atom)