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Tuesday, November 03, 2009
Rupee closes down on FII outflows
Ends at 47.40/41 per dollar
The rupee fell 0.95% against the US dollar on Tuesday on outflow from foreign funds as share indices plunged over 3%.
Rupee ended at 47.40/41 per dollar, off an intraday low of 47.50 and about 0.95% below its previous close of 46.96/97 on Friday.
Nifty November 2009 futures at discount
Turnover rises
Nifty November 2009 futures were at 4,536.25, at a discount of 27.65 points as compared to the spot closing of 4,563.90. Turnover in NSE's futures & options (F&O) segment rose to Rs 81,574.39 crore from Rs 78,337.48 crore on Friday, 30 October 2009.
ICICI Bank November 2009 futures were at discount at 781 compared to the spot closing of 785.
State Bank of India November 2009 futures were at a slight discount at 2,087.45 compared to the spot closing of 2,092.
Reliance Industries November 2009 futures were at a slight premium at 1,814.65 compared to the spot closing of 1,811.35.
In the cash market, the S&P CNX Nifty fell 147.80 points or 3.14% at 4,563.90.
Asian markets turn timid on Tuesday
Sensex, Seoul, Sydney, Hang Seng finish lower while Shanghai extend gains
Stock market in Asian region finished mostly lower on Tuesday, 3 November 2009, on concerns stimulus measures if withdrawn prematurely may undermine a global economic recovery. After a fairly positive opening, most of the markets in the region drifted lower as Reserve Bank of Australia hiked the rates, the participants choosing to tread cautiously ahead of interest rates announcements from the U.S, U. K and Euro zone this week.
On Wall Street, the major stock averages recovered after another volatile day Monday as the market goes through what one observer calls a transition period. The Dow Jones Industrial Average gained 76.71 points, or 0.8%, to 9789.44, while the S&P 500 added 6.69 points, or 0.7%, to 1,042.88. The Nasdaq edged up 4.09 points, or 0.2%, to 2049.20.
Stocks advanced early after a trio of positive surprises economic reports, but gave up those gains by midday only to recover with a buying spree in the final hour.
On the economic front, the Institute for Supply Management’s index on manufacturing rose to 55.7 in October from 52.6, topping expectations for 53, marking the third consecutive monthly gain and the highest rate of growth since April 2006. The rise was driven by significant gains in production and employment. At the same time, pending home sales offered a big upside surprise, rising 6.1% while the construction spending rose by 0.8%.
In the commodity market, crude oil was little changed in New York after rising yesterday as data showing global manufacturing expanded signaled that fuel demand may increase.
Crude oil for December delivery was at $77.97 a barrel, down 16 cents, on the New York Mercantile Exchange at 3:58 p.m. Singapore time. The contract yesterday gained $1.13, or 1.5%, to settle at $78.13 a barrel.
Brent crude for December settlement was at $76.43 a barrel, down 12 cents, on the London-based ICE Futures Europe exchange at 3:59 p.m. Singapore time. The contract yesterday climbed $1.35, or 1.8%, to $76.55 a barrel.
Gold for immediate delivery rose after the International Monetary Fund sold 200 metric tons of gold to the Reserve Bank of India for about $6.7 billion, its first sale of the precious metal in nine years. Gold for immediate delivery gained to $1,061.60 an ounce at 3:42 p.m. in Singapore and was about $9 below its record $1,070.80 an ounce reached 14 October.
In the currency market, Australian dollar weakens mildly after the expected RBA hike 0.25% to 3.50%. The bank noted in the accompany statement that the "adjustments at the October and November meetings will work to increase the sustainability of growth in economic activity and keep inflation consistent with the target over the years ahead," which is taken a signal that it will pause for some time.
The Japanese yen was quoted at 89.98 per dollar.
The Hong Kong dollar was trading at HK$ 7.7504 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 fell after the Reserve Bank of Australia raised interest rates by an expected 25 basis points but sounded less hawkish than some had bet on. At the today close, the dollar was trading at $US0.9032, after slipping as low as $US0.9007 in the wake of the rates decision, off an intra-day high of $US0.9092 as investors sold on the fact. Yesterday the dollar closed at $US0.9047.
In Wellington trade, the New Zealand dollar ended a mixed session with a muted reaction to news today that the Reserve Bank of Australia raised its cash rate by 25 basis points to 3.5%. The NZ dollar had a bumpy ride on Monday night, rising to US72.65c and then plunging to US71.45c by 8am. It consolidated for most of the session here ahead of the Australian rate decision at 4.30pm.
The South Korean won ended at 1,182 won to the U.S. dollar, up 0.5 percent from Monday's close, on growing risk appetites for the South Korean won.
The Taiwan dollar weakened against the greenback. The Taiwan dollar was trading lower against the US dollar at NT$ 32.5750, 0.0220 down from Monday’s close of NT$32.5530.
In the equity market, Asian share markets closed mixed in subdued trade as a holiday in Japan kept bourses range-bound, with gold stocks leading the way in Australia after gains for the yellow metal.
In Japan, stock markets were closed on the account of bank holiday.
In Mainland China, share market surged, extending winning streak for third consecutive days, with financial and commodities stocks led the gainers as bullish manufacturing data increased the risk appetite. China property issue tumbled amid concerns with respect to asset quality in the banks. The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, surged 37.58 points, or 1.22%, to 3,114.23, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, rose 1.26%, to 3,435.42.
In Hong Kong, the stock market tumbled, after climbing as much as 0.3% as market participants indulging into profit taking across the major heavyweights. Property developers stocks weighed the most on concern the government would act to stabilize the property market. Banks and financials ran out of steam after US Federal Reserve official’s warning about banks’ loan losses. Export related stocks were firmer as better than-estimated manufacturing figures in the U.S.
At the closing bell, the Hang Seng Index declined 380.13 points, or 1.76%, to 21,240.06, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, plunged 241.24 points, or 1.89%, to 12,500.64.
In Australia, the share market benchmark finished the session lower, after trading both side of gain line with QBE Insurance dragged the most in financials, while profit taking continued to hit the energy sector despite crude oil prices gained momentum overnight.
At the closing bell, the benchmark S&P/ASX200 index tumbled 8.9 points, or 0.2%, to 4,531.50, while the broader All Ordinaries retreated 6.30 points, or 0.14%, to 4,540.
On the economic front, the Reserve Bank of Australia has lifted its key interest rate for a second month in a row as it attempts to keep economy on track for sustained growth. Today's widely tipped 25-basis-point increase raises the central bank's cash rate to 3.5%, marking the first back-to-back monthly increase by the RBA board since March last year when rates peaked at 7.25%.
The quarter-point increase will add about $45 to the average monthly payment for a typical 25-year, $300,000 mortgage if it is passed on in full by commercial banks.
In New Zealand, stocks ended on a negative note although the stock market made small early gains early today following yesterday's 1% fall. The share market registered the second day of decline in a row Tuesday. The early gain came after a fairly positive session in the United States overnight. Although Wall Street ended higher Monday over some positive economic reports, Asian stock markets are exhibiting a mixed trend on Tuesday. The NZX50 declined 0.78% or 24.74 points to 3158.99. The NZX 15 lost 0.77% or 43.90 points to close at 5735.01.
In South Korea, stocks finished lower as they underwent a correction on recovery jitters and looming exit strategies. The benchmark Korea Composite Stock Price Index (KOSPI) declined 9.17 points to end at 1,549.92, taking its losing streak to a sixth consecutive session.
In Singapore, stock market finished the session lower after fluctuating in and out of boundary line after Prime Minister Lee Hsien Loong said today Singapore’s export-dependent economy has bottomed out. The market has turned from buying on dips to selling on rallies. Financials ran out of steam after US Federal Reserve official’s warning about banks’ loan losses. The blue chip Straits Times Index was ended the session at 2,621.55, erased 23.88 points or 0.9%.
In Taiwan, stock markets continued to witness range bound movement as stocks continued to move around the one month low, with construction sector leading the losers. The benchmark Taiex share index inched down further for sixth session as it lost 12.25 points or 0.17% in a day, closing at 7322.93, another lowest closing since 28 September 2009 when market finished day at 7284.61.
On the economic front, visitor arrivals to Taiwan in the first nine months of this year totaled more than 3.16 million, up 11.54% from the same period last year. According to the Tourism Bureau the figures contradicted forecasts that 2009 would be a bleak year for the tourism industry in light of the global economic downturn and the influenza A(H1N1) outbreak, predicting that visitor arrivals for the whole year are likely to reach 4.1 million.
In Philippines, the stock market closed flat, despite of positive cues from overnight US markets as most of the sectors failed to record any gains except the mining & oil index and industrial stocks. Investors remained cautious ahead of corporate earnings results, results of a central bank policy meeting, inflation data for October, which brought the composite index in negative territory. Mining & oil index mounted nearly 6%. The benchmark index PSEi lost 0.26 points to 2,908.24, while the All shares index fell 0.08% or 1.57 points to 1,826.80.
In India, stocks collapsed like a pack of cards in the last hour of trade, with market extending losses for a sixth trading day, on intense selling pressure. Fears other audit in other frontline companies following reports of special audit in index heavyweight's Reliance Industries' books of accounts triggered a sell-off on the bourses. Weak European markets, subdued regional markets and lower index futures dampened investor sentiment further.
The BSE 30-share Sensex slumped 491.34 points or 3.09% to 15,404.94. The S&P CNX Nifty slipped 147.80 points or 3.14% to 4563.90.
Elsewhere, Malaysia's Kula Lumpur Composite index finished slightly higher at 1242.32 while stock markets in Indonesia’s Jakarta Composite index ended the day down at 2334.11.
In other regional market, European shares fell after Australia kicked off a busy week for central bank interest-rate decisions with its second hike in two months, while asset-protection scheme updates from two British lenders placed the focus firmly on the banking sector. On a regional level, the U.K. FTSE 100 index lost 2.1% to 4999, the German DAX index declined 2% to 5,322 and the French CAC-40 index fell 2.3% to 3,557.
Market Review -Nov 3 2009
BSE Sensex: (15405) we said ‘technically the market is still weak and any up moves that we get would be fake up moves that need to be sold’ the market gave an up move and finally cracked breaching 4700 and even the 4600 mark to close in the red and bounced from near our support of 4550…the market is over sold and a reaction is not ruled out…
The crucial support for the Sensex is at 15356-15113 and logical technical target at 15800
Nifty (4564) The crucial support for the Nifty is at 4550-4400 and logical technical targets at 4700
NSE Bulk Deals to Watch - Nov 3 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
03-NOV-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,BUY,174541,64.69,-
03-NOV-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,3888060,43.36,-
03-NOV-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,8978489,18.38,-
03-NOV-2009,PETRONENGG,Petron Engg Construc Ltd,MITESH N MEHTA,BUY,40000,220.14,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,CPR CAPITAL SERVICES LTD.,BUY,141021,220.52,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINESH MUNJAL,BUY,223698,224.07,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,JITENDRA MOHANLAL LAKHANI,BUY,52000,214.92,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,61187,215.83,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,BUY,107290,223.75,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,BUY,76529,222.15,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,NEPTUNE FINCOT PVT LTD,BUY,146914,225.55,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,BUY,192839,221.85,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,RAMINDER KAUR DHIR,BUY,59183,223.85,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,SUNEET LAL,BUY,53147,220.04,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,164816,223.95,-
03-NOV-2009,ZYLOG,Zylog Systems Limited,STHITHI INSURANCE SERVICES PRIVATE LIMITED,BUY,103334,340.10,-
03-NOV-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,SELL,232058,63.60,-
03-NOV-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,3903820,43.44,-
03-NOV-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,9013489,18.37,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,CPR CAPITAL SERVICES LTD.,SELL,141021,220.53,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINESH MUNJAL,SELL,225698,223.93,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,JITENDRA MOHANLAL LAKHANI,SELL,49000,227.25,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,61187,216.06,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,SELL,106290,223.97,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,SELL,76529,222.23,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,NEPTUNE FINCOT PVT LTD,SELL,146914,225.52,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,SELL,192839,221.91,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,RAMINDER KAUR DHIR,SELL,59183,223.45,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,SUNEET LAL,SELL,53147,219.75,-
03-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,164816,224.14,-
03-NOV-2009,ZYLOG,Zylog Systems Limited,STHITHI INSURANCE SERVICES PRIVATE LIMITED,SELL,103334,337.71,-
BSE Bulk Deals to Watch - Nov 3 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
3/11/2009 531978 AMBIKA COTON C BHAVANI B 31000 103.61
3/11/2009 531978 AMBIKA COTON C A GALIAKOTWALA & CO PVT LTD S 31000 103.61
3/11/2009 524760 ARVIND INTER NIRMALKUMAR AGARWAL S 30000 15.20
3/11/2009 524760 ARVIND INTER SANJAY BUDHIA S 30000 15.30
3/11/2009 519532 ASIAN TEA EX YOGESH SHASHIKUMAR SAVADEKAR B 60139 31.65
3/11/2009 531682 CAT TECHNOL S V ENTERPRISES B 286771 14.04
3/11/2009 531682 CAT TECHNOL VINOD AMRATLAL NAAI S 185892 14.35
3/11/2009 531337 CHAN GUIDE I ALTRA CLEAN OPERATIONS S 41525 86.96
3/11/2009 532363 COMP-U-LEARN HEMENDRA RATILAL MEHTA S 66746 33.91
3/11/2009 517973 DMC INTER SUNIL MALIK B 112489 22.35
3/11/2009 533090 EXCEL INFO JATIN LAXMIKANT TRIVEDI B 179123 65.33
3/11/2009 533090 EXCEL INFO JATIN LAXMIKANT TRIVEDI S 168698 63.94
3/11/2009 532379 FIRSTOBJ JMP SECURITIES PVT LTD S 972439 1.69
3/11/2009 526951 GOLDE LAMINA PUNAM JAIN B 39050 19.90
3/11/2009 500201 INDIA GLYCOL MANJULA JAYNTILAL JAIN B 151188 115.55
3/11/2009 532544 INDIABULLS MORGAN STANLEY MAURITIUS COMPANY LIMITED S 1681971 136.75
3/11/2009 523467 JAI MATA GLA SANJAY JAIN B 70002 2.97
3/11/2009 523467 JAI MATA GLA KAVITA GOYAL B 110000 3.00
3/11/2009 523467 JAI MATA GLA OMPARKASH GUPTA B 189030 2.91
3/11/2009 523467 JAI MATA GLA Naman Securities & Finance Pvt. Ltd. B 171554 2.87
3/11/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD B 810697 2.80
3/11/2009 523467 JAI MATA GLA NILESH M BHATTAD B 70000 2.84
3/11/2009 523467 JAI MATA GLA GRISHMA V JHAVERI B 100000 2.82
3/11/2009 523467 JAI MATA GLA CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 382271 2.90
3/11/2009 523467 JAI MATA GLA BHAVIN Y MEHTA B 999660 2.81
3/11/2009 523467 JAI MATA GLA BP FINTRADE PRIVATE LIMITED B 190141 2.97
3/11/2009 523467 JAI MATA GLA SATYA NARAYAN S 100000 2.74
3/11/2009 523467 JAI MATA GLA OMPARKASH GUPTA S 144031 2.90
3/11/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 1300000 2.87
3/11/2009 523467 JAI MATA GLA SVS SECURITIES PVT LTD S 68400 2.86
3/11/2009 523467 JAI MATA GLA Naman Securities & Finance Pvt. Ltd. S 471038 2.77
3/11/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD S 791820 2.83
3/11/2009 523467 JAI MATA GLA CHHAYA DILIP SHAH S 86154 3.02
3/11/2009 523467 JAI MATA GLA MANSI MILAN CHOKSI S 151977 3.02
3/11/2009 523467 JAI MATA GLA CHIMANLAL MANEKLAL SECURITIES PVT.LTD S 383271 2.84
3/11/2009 523467 JAI MATA GLA BHAVIN Y MEHTA S 1016581 2.96
3/11/2009 523467 JAI MATA GLA BP FINTRADE PRIVATE LIMITED S 230265 2.85
3/11/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 83937 6.09
3/11/2009 530255 KAY POW PAP PRAKASHCHAND GUPTA B 85000 6.09
3/11/2009 530255 KAY POW PAP OMPARKASH GUPTA B 59832 5.82
3/11/2009 530255 KAY POW PAP SATISH KUMAR GUPTA B 117100 6.29
3/11/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 83937 6.03
3/11/2009 530255 KAY POW PAP PRAKASHCHAND GUPTA S 88460 6.06
3/11/2009 530255 KAY POW PAP SATISH KUMAR GUPTA S 117100 5.96
3/11/2009 531834 NATURA HUE C JINESH DEVENDRA BHATT B 59819 26.54
3/11/2009 531834 NATURA HUE C JINESH DEVENDRA BHATT S 36150 26.12
3/11/2009 524654 NATURAL CAPS VIVOG COMMERCIAL LTD B 26170 43.11
3/11/2009 530381 PETRON ENGIN MITESHN MEHTA B 40000 210.89
3/11/2009 530381 PETRON ENGIN SAL REAL ESTATES PVT LTD S 56475 208.01
3/11/2009 531769 PFL INFOTECH ROOPLATA MANAKCHAND JAIN S 70000 10.01
3/11/2009 590077 RANKLIN SOLU OMPARKASH GUPTA B 33709 34.95
3/11/2009 590077 RANKLIN SOLU VENKATA BADRINARAYANAMMA GOLLAPUDI B 57000 35.06
3/11/2009 590077 RANKLIN SOLU OMPARKASH GUPTA S 33709 35.08
3/11/2009 590077 RANKLIN SOLU K M REDDY S 29000 34.89
3/11/2009 590077 RANKLIN SOLU SRINIVASA RAO PABBATHI S 28000 35.15
3/11/2009 590077 RANKLIN SOLU CHANDRASEKHARA RAO BATTULA S 26000 35.14
3/11/2009 530815 REFNO RES CH GYANCHAND JAIN B 20000 10.00
3/11/2009 530815 REFNO RES CH VIJAY KUMAR JAIN S 20000 10.00
3/11/2009 531646 RFL INTERNAT ATULKUMAR MANSUKHLAL SHAH S 42500 1.32
3/11/2009 506172 SAMPADA CHEM HIMALAYA BUILDERS PVT LTD S 30100 34.97
3/11/2009 526521 SANGHI INDUS PRITHVI LOGISTICS PRIVATE LIMITED B 4399578 33.00
3/11/2009 526521 SANGHI INDUS SAFAL INVESTORS SERVICES PRIVATE LIMITED B 3547087 33.00
3/11/2009 526521 SANGHI INDUS PACIFIC INVESTORS SERVICES PRIVATE LIMITED B 3060761 33.00
3/11/2009 526521 SANGHI INDUS SPINNAKER GLOBAL STRATEGIC FUND LIMITED S 10998950 33.00
3/11/2009 523455 TECHTRAN POL NARESHCHAND JAIN B 73989 23.45
3/11/2009 523455 TECHTRAN POL PANKAJ SARDARMAL RAMAWAT S 67930 23.35
3/11/2009 523455 TECHTRAN POL NARESHCHAND JAIN S 73989 23.55
3/11/2009 533121 THINKSOFT DEEPAK SHANTILAL CHHEDA B 52135 223.90
3/11/2009 533121 THINKSOFT GENUINE STOCK BROKERS PVT. LTD. B 50670 219.75
3/11/2009 533121 THINKSOFT TRANSGLOBAL SECURITIES LTD. B 164738 223.76
3/11/2009 533121 THINKSOFT RAMINDER KAUR DHIR B 69745 222.82
3/11/2009 533121 THINKSOFT MBL & Co. LTD. B 77154 222.50
3/11/2009 533121 THINKSOFT MATRIX EQUITRADE PVT. LTD. B 80452 223.21
3/11/2009 533121 THINKSOFT SANJEEV SINGHAL B 53754 220.02
3/11/2009 533121 THINKSOFT OPG SECURITIES P LTD B 578050 220.44
3/11/2009 533121 THINKSOFT NAVEEN TAPARIA B 57315 222.53
3/11/2009 533121 THINKSOFT RAMINDER KAUR DHIR S 69745 223.28
3/11/2009 533121 THINKSOFT MBL & Co. LTD. S 77154 222.58
3/11/2009 533121 THINKSOFT MATRIX EQUITRADE PVT. LTD. S 80452 223.36
3/11/2009 533121 THINKSOFT SANJEEV SINGHAL S 53754 220.18
3/11/2009 533121 THINKSOFT OPG SECURITIES P LTD S 578050 220.63
3/11/2009 533121 THINKSOFT NAVEEN TAPARIA S 57315 220.29
3/11/2009 533121 THINKSOFT DEEPAK SHANTILAL CHHEDA S 52135 224.32
3/11/2009 533121 THINKSOFT GENUINE STOCK BROKERS PVT. LTD. S 50670 220.01
3/11/2009 533121 THINKSOFT TRANSGLOBAL SECURITIES LTD. S 164738 223.83
3/11/2009 514162 WELSPUN INDI WELSPUN TRADING LIMITED B 645000 79.50
3/11/2009 514162 WELSPUN INDI DIPALI BALKRISHAN GOENKA S 645000 79.50
Sensex tanks 491 pts at close; Realty worst hit
It was a disappointing day for Indian markets as the Sensex slumped over 491 points weighed by realty, metal, oil & gas, power and IT stocks. Broader markets added fuel to the sentiment, mirroring weak global sentiments.
The Sensex opened on a bearish note with a loss of 57.65 points, at 15,838.63 on Tuesday tracking weak Asian markets. It traded in a volatile manner moving in and out of the red line and was nearing 16,000 mark. Later, the index slipped into red on profit booking. As the day progressed, the benchmark index plunged further on the back of intense selling by funds influenced by weak opening in European markets amid disappointing results by leading firms.
BSE Midcap and Smallcap index plunged 3.74% and 4.50% respectively.
European stocks dropped as UBS reported a wider-than-estimated loss and Australia raised interest rates for the second time in four weeks. UBS declined more than 3% as Switzerland`s largest bank posted its fourth consecutive quarterly loss. UK`s benchmark index FTSE 100 fell 108.12 points, or 2.12%, to trade at 4,996.38. French benchmark index CAC 40 declined 83.32 points or 2.29% to trade at 3,556.13. Germany`s benchmark index DAX lost 112.68 points or 2.07% to trade at 5,318.14 (3.50 p.m., IST)
Asian stocks fell, led by banks and energy companies, as UBS and Suzlon Energy posted wider- than-estimated losses amid investor concern the withdrawal of stimulus measures will cause the global recovery to falter. Hong Kong`s Hang Seng index fell 380.13 points, or 1.76%, to close at 21,240.06. China`s Shanghai Composite rose 37.58 points, or 1.22% to settle at 3,114.23.
The Sensex ended the day with a loss of 491.34 points, or 3.09% at 15,404.94 after touching a high of 15,957.06 and a low of 15,330.56. The broad-based NSE Nifty fell 147.80 points, or 3.14% at 4,563.90 after hitting a high of 4,729.85 and a low of 4,538.50.
Major gainers in the 30-share index were Bharti Airtel (2.67%), Maruti Suzuki India (1.13%), and Sun Pharmaceutical Industries (0.31%).
On the other hand, Hindalco Industries (10.50%), DLF (9.04%), Jaiprakash Associates (7.52%), Reliance Capital (7.05%), Sterlite Industries (India) (6.40%), and ACC (6.20%) were the major losers in the Sensex.
Overall market breadth was sharply negative. Out of the total 2,761 stocks traded at BSE, 534 advanced, 2,171 declined while 56 remained unchanged.
All sectoral indices settled negative. BSE Realty was hammered badly. The counter fell 9.76%, Metal lost 5.95%, Oil & Gas lost 4.1%, Power fell 3.49% and IT fell 3.44%.
Post Session Commentary - Nov 3 2009
Extending losses for the six straight trading sessions, the Indian market tumbled in the final hours of the session to close on a negative note tracking the weakness across the Asian markets. Also the negative opening of the European markets spoiled the investors’ sentiments further. Moreover, the reports that the Comptroller and Auditor General (CAG) has set up a team to examine the expenses incurred by Reliance industries on its D6 natural gas filed in the Krishna Godavari basin, put some pressures. This led to the fears that there may be audit in other major companies led to the major selloff across the sectoral indices. The BSE Sensex closed below the 15,410 mark while Nifty just below 4,570 mark. From the sectoral front, the Realty stocks was the major hit as it was down by 9.76% followed by Metal and Oil and Gas indices, which closed with losses of 5.95% and 4.10% respectively.
The market witnessed a strong volatility during the trading session. Though the market opened on a negative note tracking the weakness in Asian markets and extends its losses further but made a sharp turnaround to recover from the initial losses on selective buying across the sectoral indices. However huge selling pressures in the late hours led the market to close on a disappointment note. From the global markets, The US markets closed positive on Monday amid better than expected economic data. The ISM Manufacturing Index for October witnessed at 55.7, construction spending in September gusted 0.8%, and pending home sales for September made a 6.1% monthly rise helped broad-based buying. Financials were outperformer as the sector gained 2.5%.
Among the Sensex pack 27 stocks ended in negative territory and 3 stocks in positive territory. The market breadth indicating the overall health of the market remained weak as 2,171 stocks closed in red while 534 stocks closed in green and 56 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 491.34 points or (3.09%) at 15,404.94 and NSE Nifty closed down by 147.80 points or (3.14%) at 4,563.90. The BSE Mid Caps closed lower by 224.81 points at 5,789.49 and the BSE Small Caps closed with losses of 317.48 points at 6,741.24. The BSE Sensex touched intraday high of 15,957.06 and intraday low of 15,330.56.
Losers from the BSE Sensex pack are Hindalco Inds (10.50%), DLF (9.04%), JP Associates (7.52%), Sterlite Inds (6.40%), ACC (6.20%), Reliance Infra (5.96%), Reliance Inds (5.73%) and Reliance Communications (5.71%).
Gainers from the BSE Sensex pack are Bharti Airtel (2.67%), Maruti Suzuki (1.13%) and Sun Pharma (0.31%).
On the global markets front, the Asian markets that opened before the Indian market, closed in red. Hang Seng, Jakarta Composite, Strait Times, Seoul Composite and Taiwan Weighted closed lower by 1.76%, 1.58%, 0.90%, 0.59% and 0.17% at 21,240.06, 2,334.10, 2,621.55, 1,549.92 and 7,322.93 respectively.
European markets, which opened after the Indian market, are trading in negative. In Paris the CAC 40 is lower by 2.01% at 3,566.32, in Frankfurt DAX index is trading down by 1.66% at 5,340.72 and in London FTSE 100 is lower by 1.96% at 5,004.60.
BSE REALTY indexwas at 3,453.63 down by 373.5 points or by (9.76%) The main losers were Indbul Real down by (16.15%) at Rs.209.45, Sobha Dev down by (10.55%) at Rs.201.35, Anant Raj In down by (9.85%) at Rs.117.65, Unitech Ltd down by (9.18%) at Rs.74.7, Dlf Ltd down by (9.04%) at Rs.336.55.
BSE METAL index was at 13,110.68 down by 829.49 points or by (5.95%) The main losers were Gujara Nre C down by (13%) at Rs.52.55, Hindalco In down by (10.5%) at Rs.109.15, Jsw Sl down by (9.92%) at Rs.680.65, Jai Corp Lim down by (6.49%) at Rs.154.2, Sterlite In down by (6.4%) at Rs.722.15.
BSE BANKEX index was at 9,156.16 down by 180 points or by (1.93%) The main losers were Federal Bank down by (8.47%) at Rs.219.8, Yes Bank down by (7.76%) at Rs.218.2, Allahabad Bk down by (5.79%) at Rs.112.3, Idbi Bank L down by (5.68%) at Rs.107.2, Kotak Bank down by (4.66%) at Rs.680.65.
BSE AUTO index was at 6,235.73 down by 71.47 points or by (1.13%) The main losers were Amtek Auto L down by (5.92%) at Rs.164.6, Escorts Ltd. down by (5.89%) at Rs.99.9, Herohonda M down by (3.5%) at Rs.1510.95, Mahindra & Mahindra Ltd. down by (3.01%) at Rs.894.2, Bosch Ltd* down by (2.67%) at Rs.4185.
BSE HC index was at 4,353.70 down by 23.5 points or by (0.54%) The main losers were Dishman Phar down by (9.67%) at Rs.211, Opto Circuit down by (7.23%) at Rs.184.9, Sunpha Adv down by (6.56%) at Rs.75.5, Orchid Chem down by (5.8%) at Rs.144.6, Wockhardt Lt down by (5.36%) at Rs.161.45.
BSE OIL&GAS index was at 9,047.91 down by 386.52 points or by (4.1%) The main losers were Aban Offsho down by (13.39%) at Rs.1104.65, Essar Oil Ltd. down by (8.31%) at Rs.122.4, Reliance down by (5.73%) at Rs.1820.65, Indian Oil C down by (2.82%) at Rs.305.25, Cairn Ind down by (2.5%) at Rs.256.9.
Mahindra and Mahindra closed lower by 3.01% at Rs. 894.20. The company has reported a growth of 32.11% in domestic sales of its utility vehicles in October at 18,410 units as against 13,935 units during same period last year. Moreover, its total domestic sales grew by 23.31 per cent at 24,538 units during the month as against 19,899 units during the same month last year.
Tata Motors fell 2.33% to close at Rs. 551.85 as the company has posted a handsome growth of 34.42% in its total sales at 53,404 units during October as against 39,729 units in the same month in 2008. The total passenger vehicle sales in the domestic market surged by 17.61 per cent at 20,011 units as against 17,014 units in the same month last year.
Unity Infraprojects Ltd closed flat at Rs. 439.90. The company has in Joint Venture with IVRCL Infrastructures & Projects Ltd, bagged a contract amounting to Rs. 1145.88 Crores for the Construction of a 8.3 km long Tunnel using Tunnel Boring Machine (TBM) from Kapurbawdi to Bhandup Complex, Mumbai from the Municipal Corporation of Greater Mumbai to be completed within 60 months. Unity Infraprojects Ltd is the Lead Partner of the Joint Venture with a share of 50 % in the Joint Venture.
Larsen & Toubro Ltd (L&T) closed lower by 2.65% at Rs. 1,525.60. The company wins Rs 6,897 Crore Order from Mahagenco for 2000 MW Supercritical Power Plant"
Sensex slips, correction continues
After an extended weekend for the domestic indices, the market that opened marginally lower, slipped sharply and ended the day with heavy loss of close to 500 points or over 3% on the back of heavy selling in realty heavyweights. The day started with overnight gains for the US and European markets, wherein the indices ended the day higher with gains of close to 1% each. While in today's trading, all the major Asian indices closed in red with losses in the range of 0.17-3.09%, except for Shanghai Composite that ended the day with gains of over 1.22% on the back of the better-than-expected expanding in the manufacturing activities (domestic PMI data). SGX Nifty that opened weak, ended the day with heavy loss of 173 points. The European indices that opened weak didn't lend support to the Sensex. The major European indices fell and slipped further, wherein FTSE 100 is trading slightly above important level of 5000, at 5001 with over 103 points losses, at the time of writing this report.
The Sensex, even today, continued its correction streak. It slid by over 627 points from its high of 15957, only to slide from that point and hit the low of 15330 in the closing hours of the trade. The Sensex opened gap down as expected at 15839 points, a measly 57 points lower to its previous close. In the early trades it remained volatile and managed to touch the green patch twice, however, with negative indicators from the global indices i.e. European and Asian, worsening the Sensex ended the day at 15405, losing 491 points or 3% in intra-day and closed below the significant psychological level of 15500. The market that traded marginally lower in the early trade on the back of weak global cues and heavy selling in the realty heavyweights shed heavily. Nifty lost 148 points to end the day at 4564 breaching an important level of 4600 on technical front. The market breadth was very negative as out of 2,761 stocks traded on the BSE only 534 stocks advanced, whereas 2,171 stocks declined. Fifty-six stocks closed unchanged.
Among the sectoral indices, every index closed in red today. BSE Realty lost the most sliding by 9.76% for the day, followed by BSE Metal that lost over 5.95%. Other indices ended the day lower in the range of 0.54% to 4.10%. On stocks’ front, Jet Airways jumped the most and surged by 7.00%, followed by Reliance Natural Resources Ltd (RNRL) that gained over 4.56%, while Marico and Bharat Electronics surged by over 3% each. Among the losers, Indiabulls Financial Services fell the most by 18.87%, followed by Indiabulls Real Estate that slid 16.15%, while Rolta India, Aban Offshore, Gujarat NRE Coke and Suzlon Energy fell by over 12% each.
On turnover front, Over 2.21 crore shares of Suzlon Energy changed hands on the BSE followed by RNRL (2.14 crore shares), Unitech (1.15 crore shares), Ispat Industries (0.87 crore shares) and Reliance Communications (0.70 crore shares).
Bears on the prowl as Sensex extends slide for sixth day
Key benchmark indices extended losses for sixth straight session of trade as sell-off gripped in index pivotals in late trade. The barometer index BSE Sensex dropped to its lowest level in more than two months. Index heavyweight Reliance Industries (RIL) slumped over 6% on reports the Comptroller and Auditor General (CAG) has set up a team to examine the expenses Reliance Industries (RIL) incurred on its D6 natural gas field in the Krishna-Godavari (KG) basin in the Bay of Bengal.
Stocks fell across the globe as investors continued to fret over the early removal of government stimulus, particularly in the financial sector. The BSE 30-share Sensex lost 491.34 points or 3.09%, off 552.12 points from the day's high and up 74.38 points from the day's low. High volatility was the hallmark of the day's trading session. The market breadth was quite weak. Selling pressure was intense with all the BSE sectoral indices ending with losses.
Realty, cement and metal shares declined sharply on selling pressure. IT stocks slipped on profit booking. Telecom shares saw divergent trend with Bharti Airtel rebounding from a 52-week low on bargain hunting after a steep recent slide. Reliance Communications dropped on poor earnings.
Intra-day volatility on the bourses was high. After an initial slide triggered by weak global stocks, the market recouped almost the entire losses shortly. However, the intraday rebound was short-lived. The market weakened again later. The market once again staged a strong intraday rebound with the Sensex entering the positive zone. However, weak global stocks pulled the market into the red again later.
Bargain hunting in index pivotals helped the market once again regain positive zone in early afternoon trade. The Sensex surged to the day's high in early afternoon trade. But the market faltered again later. Weak European markets triggered a sell-off in mid-afternoon trade. The market extended losses in late trade.
Asian stocks had dropped on Monday, 2 November 2009 when the Indian markets were closed on account of a public holiday. US stocks had declined sharply on Friday, 30 October 2009.
The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 Indian companies, fell to 54.5 in October 2009 from 55 in September 2009. A reading above 50 means activity expanded during the month. Growth in domestic new orders may be beginning to suffer from the impact of a drought, but stronger foreign demand was helping to cushion the blow, HSBC senior Asian economist Robert Prior-Wandesforde said.
Oil product sales rose 0.8% in September 2009, its lowest level since May 2009, as demand for diesel and naphtha softened, data showed on Tuesday.
A news agency today, 3 November 2009, quoted G. Bhujabal, economic advisor in the Ministry of Commerce and Industry as saying that he expects declining trend of exports reversing by December 2009 or January 2010. Exports declined 13.8% in September 2009 to $13.6 billion. Exports fell 28.5% in the April-September 2009 period to $77.9 billion.
Crude oil imports in September 2009 rose 10.5% to 2.77 million barrels per day (bpd) as Indian refiners processed 3.4% more crude. Fuel exports were down by 27% in September 2009 versus a year ago. The data does not include imports and exports by Reliance Industries' new 580,000 barrels per day export-focused refinery at Jamnagar in Gujarat.
European markets were trading weak today, 3 November 2009 as poor results from UBS and a shake-up of Lloyds and Royal Bank of Scotland rattled investors. Key benchmark indices in UK, Germany and France were down by between 2.06% and 2.49%.
Most Asian stocks fell on Tuesday, 3 November 2009, as concern over the withdrawal of stimulus measures overshadowed Ford Motor Co.'s unexpected profit and a rally in gold prices. Key benchmark indices in Hong Kong, Singapore, Taiwan, and South Korea were down by between 0.17% and 1.76% respectively. However China's Shanghai Composite index rose 1.22%.
Japanese markets were closed today, 3 November 2009, for a national holiday.
Australia's central bank on Tuesday raised its key policy rate for a second month in a row, hiking it by a quarter of a percentage point to 3.50%, as expected. The Reserve Bank of Australia left some analysts speculating that policy could be on hold in December 2009 after it said that interest rate rises in October 2009 and November 2009 would work to temper inflation and ensure a sustainable upswing in the economy.
Asian markets had dropped on Monday, 2 November 2009 as worries about the US financial sector resurfaced after CIT Group Inc, the lender to small and mid-sized US companies, filed for bankruptcy.
But Wall Street edged higher on Monday, 2 November 2009 as manufacturing expanded more than expected last month. The Dow Jones industrial average gained 76.71 points, or 0.8%, to 9,789.44. The S&P 500 index added 6.69 points, or 0.7%, to 1,042.88, and the Nasdaq Composite index rose 4.09 points, or 0.2%, to 2,049.20.
Among the economic data, the ISM reported its gauge of manufacturing activity at 55.7 in October 2009, the third straight month of growth and the highest reading since April 2006. Also pending-home sales rose to their highest level in nearly three years in September 2009, boosted by the first-time homebuyer's tax credit. Also construction spending rose 0.8% in the month of September.
Trading in US index futures indicated Dow could fall 73 points at the opening bell on Tuesday, 3 November 2009.
It is widely expected that the US Federal Reserve at a regular two-day policy meeting on 3-4 November 2009 will hold interest rates at their lowest-ever range of 0% to 0.25%, where they stood since December 2008. However, there's plenty of unease about the contents of the Fed's accompanying policy statement. A section of the market sees the Fed altering its statement to a less dovish tone. There is speculation that the Fed might drop or alter its pledge to keep rates low for an extended period.
Financial markets are also looking for clues from other central banks about when stimulative policy may have to come to an end. The European Central Bank (ECB) meets on Thursday, 5 November 2009. No rate change is expected and few expect it to offer clues on when it might change tack. The Bank of England (BOE) meets the same day and the market is waiting to see if it tops up its quantitative easing programme after the economy unexpectedly contracted between July-September 2009 period.
Governments and central banks around the world have injected trillions of dollars in the past year or so to pull the world out of a most severe recession since the 1930s Great Depression.
Closer home, a report prepared by ministry of finance indicated India's economy is showing a "distinct" sign of pickup, although uncertainty related to the poor summer monsoon and the global economic outlook remain. India's economic growth slowed to 6.7% in the fiscal year through March 2009 after three straight years of at least 9%, and government officials have said growth in the current year is on track for roughly 6.5%.
The Reserve Bank of India (RBI) at its monetary policy review on 27 October 2009 left its key rates unchanged, but raised the wholesale price-based inflation projection for end-March 2010 sharply to 6.5% with an upward bias, from 5 % earlier.
The IMF said on 29 October 2009 the economies of India, China and Australia were recovering especially rapidly, suggesting it notices growing pressures for authorities there to tighten monetary policy ahead of others in the region. It called the three economies special cases, while adding a tightening of monetary policy seemed unnecessary elsewhere in the region in the near future.
It also advised Asian central banks not to raise interest rates only to calm asset price growth, saying lifting rates ahead of advanced economies could attract "carry trade-type" capital inflows and aggravate asset price pressures.
Closer home, there are concerns that a fund raising spree by Indian firms 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.
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.
The government has approved a follow-on public offering of 20% of state run Steel Authority of India, the steel minister said on 21 October 2009. The Government of India owns nearly 86% of Sail. Also the government gave its approval for 15% follow on public offer for Rural Electrification Corporation on 29 October 2009.
The BSE 30-share Sensex slumped 491.34 points or 3.09% to 15,404.94, its lowest closing since 3 September 2009. The Sensex opened 57.65 points lower at 15,838.63. The Sensex rose 78.78 points at the day's high of 15,957.06 in early afternoon trade. The Sensex lost 565.72 points at the day's low of 15,330.56 in late trade, its lowest level since 21 August 2009.
The S&P CNX Nifty slipped 147.80 points or 3.14% to 4,563.90, its lowest closing since 21 August 2009. Nifty November 2009 futures were at 4,536.25, at a discount of 27.65 points as compared to the spot closing. Turnover in NSE's futures & options (F&O) segment increased to Rs 81,574.39 crore from Rs 78,337.48 crore on Friday, 30 October 2009.
The BSE Sensex had shed 1405.87 points or 8.36% in six trading days to 15,404.94 on 3 November 2009 from 16,810.81 on 23 October 2009.
From a 17-month closing high of 17,326.01 on 17 October 2009, the Sensex has lost 1921.07 points or 11.08% in to the current 15,404.94. Yet, with foreign funds making heavy purchases, the Sensex is up 5757.63 points or 59.68% in calendar year 2009, as on 3 November 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7244.54 points or 88.77%, as on 3 November 2009. FII inflow in October 2009 totaled Rs 8303.80 crore, till 30 October 2009. Their inflow amounted to Rs 68,441.10 crore in the calendar year 2009.
The market breadth, indicating the overall health of the market was weak. On BSE, 1910 shares declined as compared with 749 that rose. A total of 66 shares remained unchanged.
The BSE Mid-Cap index fell 3.74% at 5,789.49, and the BSE Small-cap index fell 4.50% at 6,741.24. Both these indices underperformed the Sensex
The total turnover on BSE amounted to Rs 6,207.52 crore as compared with Rs 5104 crore on Friday, 30 October 2009
All BSE sectoral indices ended with losses. The BSE Auto index (down 1.13%), the BSE Bankex (down 1.93%), the BSE Consumer Durables index (down 2.48%), the BSE PSU index (down 2.68%), the BSE FMCG index (down 2.57%), and the BSE Healthcare index (down 0.54%), outperformed the Sensex.
The BSE Capital Goods index (down 3.20%), the BSE IT index (down 3.44%), the BSE Realty index (down 9.76%), the BSE Metal index (down 5.95%), the BSE Power index (down 3.49%), and the BSE Oil & Gas index (down 4.10%), underperformed the Sensex.
Among the 30-member Sensex pack, 27 slipped while only 3 of them managed to post gains.
India's largest firm by market capitalisation and oil refiner Reliance Industries (RIL) slumped 6.23% to Rs 1811 on reports the Comptroller and Auditor General of India (CAG) will soon audit RIL books of accounts. The stock had lost 3.62%% on Friday, 30 October 2009, hit by disappointing Q2 results.
The director general of hydrocarbons has been accused by Reliance Natural Resources (RNRL), controlled by Mukesh Ambani's estranged brother Anil Ambani, of approving an increase in RIL's capital expenditure on the D6 exploration block from $2.4 billion (Rs11,280 crore) to $8.8 billion. This block is where RIL made one of the biggest discoveries of natural gas in India.
RIL reported a 6.4% fall in net profit at Rs 3,852 crore despite 6% rise in total income to Rs 47,476 crore in Q2 September 2009 over Q2 September 2008. Refining margins more than halved to $6 a barrel from $13.3 a barrel a year earlier. The results were announced after market hours on Thursday, 29 October 2009.
The government on 27 October 2009 allocated additional 50 million cubic metres a day (mmscmd) of gas from Reliance Industries-operated east coast block D6. Power plants and refineries will get the bulk of Reliance Industries' gas from the Krishna-Godavari basin beyond the previously allotted 40 million metric standard cubic metres per day (mmscmd).
The empowered group of ministers (eGoM) also made some allotments for Reliance's petrochemical plants and refineries.
India's largest oil exploration firm by market capitalisation Oil & Natural Gas Corporation (ONGC) fell 1.03%. As per reports, the company is planning to enter the nuclear power space. ONGC, which last year announced plans to enter uranium mining, is now seriously exploring the possibility of setting up nuclear power plants in the country, reports added.
India's largest private sector aluminium maker by sales Hindalco Industries tumbled 10.21% to Rs 109.50 after net profit declined 52.2% to Rs 344.05 crore on a 13.2% decline in sales to Rs 4892.56 crore in Q2 September 2009 over Q2 September 2008. The result was announced on Saturday, 31 October 2009. It was the top loser from the Sensex pack.
Other metal stocks also drifted lower. Sterlite Industries India (down 6.42%), National Aluminium Company (down 0.15%), Tata Steel (down 6.30%), and Sesa Goa (down 6.58%), were the other losers from the metal pack.
Jindal Steel & Power fell 4.57% after net profit slumped 32.2% to Rs 305.01 crore on 28% fall in net sales to Rs 1596.53 crore in Q2 September 2009 over Q2 September 2008. The company announced the results on Saturday, 31 October 2009.
Mukand surged 5.63% on reports the company plans to sell a portion of its land bank to reduce its debt of around Rs 1500 crore over the next one year.
Rate sensitive realty shares declined, extending a recent sharp fall, after the RBI in its monetary policy review meet on 27 October 2009 raised the provisioning requirements for loans to commercial real estate from 0.4% to 1%. DLF (down 7.97%), Unitech (down 9.06%), HDIL (down 6.51%), Indiabulls Real Estate (down 14.73%), and Parsvnath Developers (down 6.13%), declined.
India's largest cement maker by sales ACC shed 5.54% after shipments in October 2009 fell marginally to 1.69 million tonnes from 1.70 million a year ago. The company said production fell to 1.71 million tonnes from 1.74 million tonnes a year ago.
India's largest private sector power generation firm by sales Reliance Infrastructure slipped 6.66%. The company on Saturday, 31 October 2009, reported 6.2% rise in net profit to Rs 306.90 crore in Q2 September 2009 over Q2 September 2008. Total income rose to Rs 2,812.82 crore from Rs 2,674.86 crore in the same period last year.
Ambuja Cements declined 4.61% after October 2009 shipments rose 3% to 1.464 million tonnes from a year earlier. The company's production rose to 1.498 million tonnes from 1.451 million tonnes.
Grasim fell 1.03% and UltraTech Cement slipped 3.48%. Aditya Birla Group's cement shipments in October rose 11.1% from a year earlier to 2.819 million tonnes. Production rose an annual 12.5% to 2.934 million tonnes. The group's cement business includes flagship Grasim Industries and unit UltraTech Cement, with a combined production capacity of 42 million tonnes a year.
India's largest engineering & construction firm by sales Larsen & Toubro rose shed 2.75% to Rs 1524.10. The stock had surged to day's high of Rs 1600 after the company said it won an order worth Rs 6897 crore from Maharashtra State Power Generation Company. The announcement was made before market hours today, 3 November 2009.
Indiabulls Power plunged 16.56%, with the scrip moving further away from the initial public offer price of Rs 45, after a disappointing debut on the bourses on Friday, 30 October 2009.
India's largest dam builder by sales Jaiprakash Associates (JAL) tanked 7.14%. As per reports its subsidiary Jaypee Infratech (JIL) is preparing to raise Rs 2,500-3,000 crore through an initial share sale. JAL is eyeing a valuation of Rs 20,000-25,000 crore and expects to divest 10-15% in JIL through the public offer.
Shanthi Gears fell 8.10% after net profit tumbled 78% to Rs 2.68 crore on 55.2% fall in net sales to Rs 29.40 crore in Q2 September 2009 over Q2 September 2008. The company announced the results on Saturday, 31 October 2009.
IRB Infrastructure Developers rose 1.56% after consolidated net profit soared 71.9% to Rs 70.82 crore on a 76.5% spurt in consolidated sales to Rs 355.90 crore in Q2 September 2009 over Q2 September 2008. The result was announced after market hours on Friday, 30 October 2009.
Suzlon Energy tumbled 13.75% after reporting a net loss of Rs 184.91 crore in Q2 September 2009 compared with a net profit of Rs 16.98 crore in Q2 September 2008. The result was announced on Saturday, 31 October 2009.
IT pivotals declined on profit booking. Infosys (down 3.09%), Wipro (down 5.21%), and TCS (down 3.66%), edged lower.
Aptech fell 8.18% on reports the company's plan to list its China-based unit on the New York Stock Exchange has been put on hold since there were some discrepancies in the unit's accounts disclosures for the first six months.
Telecom pivotals witnessed divergent trend. India's second largest telecom company by sales Reliance Communications slumped 6.17%. The company reported 51.66% decline in its consolidated profit at Rs 740 crore in Q2 September 2009 over Q2 September 2008. Consolidated revenue increased to Rs 5,703 crore in the quarter under review from Rs 5,645 crore in the year-ago period. The result was declared on 31 October 2009.
However India's largest cellular services provider by sales Bharti Airtel surged 2.14% to Rs 298.40, on bargain hunting after a sharp recent slide. The stock rebounded from an initial slide which had taken the stock to a 52-week low of Rs 280.05. It was the top gainer from the Sensex pack
Bharti Airtel on Friday introduced a 'pay per second' plan across the country. In this plan, called Freedom Plan, Airtel customers will be charged one paise per second for all local and STD calls to Airtel numbers and 1.20 paise per second for local and STD calls to other networks.
Meanwhile, Singapore Telecommunications has bought additional 1.52% stake in Bharti Airtel and will pay up to Rs 3008.4 crore in three installments ranging over 18 months. In a notice to Singapore Stock Exchange, SingTel said it has entered into a conditional share purchase agreement with Bharti Group entity to buy an additional 7,30,000 issued shares in Bharti Telecom, a promoter company of Bharti Airtel.
India's largest private sector bank by net profit ICICI Bank was down 0.70% to Rs 784 in highly volatile trading session, swinging between Rs 773.10 - 823 . The bank's net profit rose 2.6% to Rs 1040.13 crore on a 12.7% decline in total income to Rs 8480.73 crore in Q2 September 2009 over Q2 September 2008. The result was announced during trading hours on 30 October 2009.
India's largest bank by net profit State Bank of India fell 4.47%. The bank's consolidated net profit rose 28.29% to Rs 3,133.16 crore on 22% rise in consolidated income to Rs 33,101.65 crore in Q2 September 2009 over Q2 September 2008.
Auto stocks succumbed to selling pressure in late trade after logging decent gains in early trade on the back of strong growth in sales in the month just gone by. Low interest rates and attractive benefits offered by companies pushed the aggregate sales of the industry in October 2009.
India's largest tractor maker by sales Mahindra & Mahindra lost 3.47%. Its overall sales climbed 32% in October this year to 18,410 units against 13,935 units in the same month last year.
India's largest truck marker by sales Tata Motors slipped 2.65%. Its total sales grew 18% to 20,011 units last month against 17,014 units in the same period last year.
However India's largest small car marker by sales Maruti Suzuki India rose 0.61% after total sales grew 32.4% to 85415 units in October 2009, compared with 64490 units posted in the same month a year ago.
Ashok Leyland gained 1.76% after net profit surged 31.8% to Rs 88.61 crore on 15.7% fall in net sales to Rs 1577.68 crore Q2 September 2009 over Q2 September 2008. The company announced the results after market hours on Friday, 30 October 2009.
India's second largest bike marker by sales Bajaj Auto rose 1.09% after it reported 51.06% rise in total two-wheeler sales to 2,49,974 units in October 2009 as compared with 1,65,477 units in the same period a year ago.
However India's largest bike marker by sales Hero Honda Motors fell 4.07% after it reported a marginal increase in October sales at 354,156 units as against 352,449 units in the same month last year.
India's largest FMCG company by sales Hindustan Unilever dropped 4.58% after net profit fell 22% to Rs 429 crore on 5% rise in net sales to Rs 4,228 crore in the quarter ended September 2009 over the quarter ended September 2008.
Shares from healthcare sector gained on defensive buying. Dr Reddy's Laboratories (up 3.95%), Nicholas Piramal (up 0.56%), Sun Pharmaceuticals (up 1.33%), Lupin (up 1.12%), and Cipla (up 0.61%), gained.
Aurobindo Pharma rose 0.17% after the company posted net profit of Rs 128.29 crore in Q2 September 2009 as against a net loss of Rs 38.50 crore in Q2 September 2008. The company announced the results after market hours on Friday, 30 October 2009.
Advanta India fell 9.37% after the company posted net loss of Rs 12.86 crore in Q3 September 2009, higher than net loss of Rs 7.01 crore in Q3 September 2008. Total income plunged 43.6% to Rs 7.84 crore in Q3 September 2009 over Q3 September 2008. The company declared its results after market hours on Friday, 30 October 2009.
Sugar maker Balrampur Chini Mills shed 9.58% after it today, 3 November 2009 said it has not entered into any stake sale agreement with rival Bajaj Hindusthan. The company held some talks with Bajaj Hindusthan to discuss future business strategies, it said in a letter to the stock exchange. Bajaj Hindusthan rose 0.46%.
Print media reports on Saturday indicated that Bajaj Hindusthan was in talks with Balrampur Chini to buy stake from its founders for Rs 2400 crore.
Reliance Industries was the top traded counter on BSE with turnover of Rs 206.91 crore followed by State Bank of India (Rs 183.90 crore), ICICI Bank (Rs 169.01 crore), Bharti Airtel (Rs 148.18 crore), and Reliance Natural Resources (Rs 145.51 crore).
Cals Refineries clocked highest volume of 3.20 crore shares on BSE. Suzlon Energy (2.21 crore shares), Reliance Natural Resources (2.14 crore shares), Indiabulls Power (1.60 crore shares) and Unitech (1.15 crore shares), were the other volume toppers in that order.
Crude ends higher
Prices rise on back of strong economic reports
Crude prices ended higher at Nymex on Monday, 02 November, 2009. Prices rose riding on the back of better than expected economic data. Still, prices closed at lower levels compared to their intra day highs.
On Monday, crude-oil futures for light sweet crude for December delivery closed at $77.3/barrel (higher by $0.29 or 0.4%). Earlier, during intra day trading, it rose to a high of $78.66.
The Institute for Supply Management reported on Monday, 02 November, 2009 that USA's manufacturing firms expanded at the fastest pace in more than three years in October, putting this segment of the economy on what appears to be a sustainable growth path.
The Institute for Supply Management index rose to 55.7% from 52.6% in September, well above the 53% expected. It's the highest reading since April 2006. Readings over 50% in the ISM diffusion index indicate that more firms are growing than contracting.
In a separate report, the National Association of Realtors in US reported on Monday, 02 November, 2009 that pending sales of existing homes rose a seasonally adjusted 6.1% in September, the eighth consecutive increase. Buyers were rushing to beat the expiration of an $8,000 federal tax credit for first-time buyers.
In the currency market on Monday, the dollar index, which calculates the strength of the dollar against a basket of six other currencies reversed its course after dropping earlier during the day.
Also on Monday, December reformulated gasoline gained 1 cent to $1.96 a gallon and December heating oil rose 1 cent, or 0.5%, to $2.02 a gallon.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
Grey Market - Astec Lifesciences, Den Networks
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| DEN Network Ltd. | 195 to 205 | Discount |
| Astec Life Science | 77 to 82 | 2 to 2.50 |
Pre Session Commentary - Nov 3 2009
Today domestic markets are likely to open flat to positive amid bounce back in US Market overnight. However, the bourses might saw their gains reverse as weakness among Asian stocks and fragile trade in SGX Nifty. One could expect buyers stepping in for Banking and Metal stocks along the curve. The trade would be choppy with negative bias. Today domestic market is likely to trade range bound with negative bias.
On Friday, Indian market closed negative for the fifth consecutive session amid active participation of sellers and weak global market. The barometer index BSE Sensex closed below the psychological 16,000 mark. The weak listing of Indiabulls Power on the bourses spoiled the investors’ sentiments. The stock closed at Rs. 39.25 lower by 12.77% over the initial public offer price of Rs. 45 a share. From the sectoral front, Oil and Gas index is worst hit due the earnings of some of the major players like ONGC and Reliance industries reported below than expected September quarterly earnings. Telecom stocks were hammered on continued worries about price war in the sector. Auto stocks climbed on expectations of strong sales in Oct’09. Metal shares advanced on firm metal prices on the London Metal Exchange. The bourses were dragged by huge sell off in Oil&Gas, Tech and Power stocks with respective slide 2.79%, 1.93%, 1.49% and 0.89% respectively. The Market breadth, indicating the overall strength of the market, was weak.
The BSE Sensex closed lower by 156.44 points or 0.97% at 15,896.28 and NSE Nifty closed down by 38.85 points or 0.82% at 4,711.70. The BSE Mid Caps closed lower by 32.49 points at 6,014.30 and the BSE Small Caps closed with losses of 55.12 points at 7,058.72. The BSE Sensex touched intraday high of 16,360.88 and intraday low of 15,805.20.
The US markets closed positive on Monday amid better than expected economic data. The ISM Manufacturing Index for October witnessed at 55.7, construction spending in September gusted 0.8%, and pending home sales for September made a 6.1% monthly rise helped broad-based buying. Financials were outperformer as the sector gained 2.5%.However, financial sector saw their gains reverse as weakness among insurers spread to the rest of the sector. Materials stocks finished the session with some of the strongest gains on weakening dollar. Rally was also seen in consumer staples stocks (+1.0%) and consumer discretionary stocks (+0.9%), which were helped by strength in shares of Ford. US light crude oil futures for December delivery closed up by 1.4% at $78.09 per barrel, on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) ended with gain of 76.71 points at 9,789.44. NASDAQ index climbed 4.09 points to 2,049.20 and the S&P 500 (SPX) closed higher by 6.69 points at 1,042.88.
Indian ADr''s ended strong on Monday. In the IT space Infosys was up 0.83%, Wipro was up 2.04% while Satyam was down 2.84% and Patni was up 0.52%. In the telecom space Tata Comm was up 6.57% while MTNL slipped 1.72%. In the banking space, ICICI Bank was up 4.29% while HDFC Bank was up 1.37%. In the other sectors, Sterlite was up 2.09%, Dr Reddys was up 5.52% and Tata Motors was up 2.99%.
The FIIs on Friday stood as net seller in equity and debt as well. Gross equity purchased stood at Rs. 3,418.90 crore and gross debt purchased stood at Rs. 247.10 crore, while the gross equity sold stood at Rs. 5,013.50 crore and gross debt sold stood at Rs. 307.20 crore. Therefore, the net investment of equity and debt reported were (Rs. 1,594.60) crore and (Rs. 60.10) crore respectively.
On Friday, the partially convertible rupee ended at 47.21/22 per dollar, 0.3% stronger than previous closing at 47.20/21 per dollar helped by dollar sales by exporters taking profits.
On BSE, total number of shares traded were 49.54 crore and total turnover stood at Rs. 6,207.52 crore. On NSE, total number of shares traded were 105.88 crore and total turnover was Rs. 20,196.37 crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 62950482 shares, followed by Suzlon Energy with 37683708, Bharti Airtel with 33104590, Reliance Communication with 19416431 and Jaiprakash Associates with 16014670 shares.
On NSE Future and Options, total number of contracts traded in index futures was 837152 with a total turnover of Rs. 19,335.20 crore. Along with this total number of contracts traded in stock futures were 663781 with a total turnover of Rs. 20,280.28 crore. Total numbers of contracts for index options were 1514941 with a total turnover of Rs. 36,956.57 crore and total numbers of contracts for stock options were 58873 and notional turnover was Rs. 1,765.43 crore.
Today, Nifty would have a support at 4,686 and resistance at 4,745 and BSE Sensex has support at 15,723 and resistance at 15,972.
Market set for uncertain start after a long weekend
The market is likely to see an uncertain start after a long weekend reacting to global cues. Global markets had declined on Monday when the local markets were closed on account of Gurunanak Jayanti festival. The S&P CNX Nifty futures were trading 31 points lower in Singapore. Auto and cement companies will be in action following release of the monthly sales figures for October 2009 during the weekend.
Automobile sales rose 29.89% to 154,476 units in October 2009 over October 2008 as softened lending rates and attractive benefits offered by companies pushed the aggregate sales of the industry. Domestic sales of Maruti Suzuki grew 21% to 71,551 units in October 2009, compared with 59,127 units posted in the same month a year ago. Utility vehicle maker Mahindra & Mahindra saw its overall sales climbing 32% in October this year to 18,410 units against 13,935 units in the same month last year. Tata Motors' sales grew 18% to 20,011 units last month against 17,014 units in the same period last year.
Cement major ACC reported fall in cement despatches to 1.69 million tonnes in October 2009 from 1.70 million tonnes in October 2008. However Ambuja Cement's despatches rose 14.64 lakh tonnes from 14.21 lakh tonnes.
The following results were unveiled after market hours on Friday, 30 October 2009. State Bank of India (SBI)'s consolidated net profit rose 28.29% to Rs 3,133.16 crore on 22% rise in consolidated income to Rs 33,101.65 crore in Q2 September 2009 over Q2 September 2008.
Reliance Communications reported 51.66% decline in its consolidated profit at Rs 740 crore in Q2 September 2009 over Q2 September 2008. Consolidated revenue increased to Rs 5,703 crore in the quarter under review from Rs 5,645 crore in the year-ago period.
Reliance Infrastructure on Saturday reported 6.2% rise in net profit to Rs 306.90 crore in Q2 September 2009 over Q2 September 2008. Total income rose to Rs 2,812.82 crore from Rs 2,674.86 crore in the same period last year.
Hindalco Industries on Saturday reported a 52% drop in its standalone net profit to Rs 344 crore on 13.4% fall in net sales to Rs 4,917 crore in Q2 September 2009 over Q2 September 2008.
Hindustan Unilever net profit fell 22% to Rs 429 crore on 5% rise in net sales to Rs 4,228 crore in the quarter ended September 2009 over the quarter ended September 2008.
Most Asian markets were trading lower today, 3 November 2009 as concern over the withdrawal of stimulus measures overshadowed Ford Motor Company.'s unexpected profit and a rally in gold prices. Key benchmark indices in Hong Kong, Japan, Singapore, South Korea and Taiwan were down by between 0.06% and 2.31%. However China's Shanghai Composite was up 1.10%.
Asian markets had dropped on Monday, 2 November 2009 following a sharp sell-off in US markets on Friday, 30 October 2009.
Wall Street edged higher on Monday as manufacturing expanded more than expected last month.
The Dow Jones industrial average gained 76.71 points, or 0.8%, to 9,789.44. The S&P 500 index added 6.69 points, or 0.7%, to 1,042.88, and the Nasdaq Composite index rose 4.09 points, or 0.2%, to 2,049.20.
Among the economic data, the ISM reported its gauge of manufacturing activity at 55.7 in October 2009, the third straight month of growth and the highest reading since April 2006. Also pending-home sales rose to their highest level in nearly three years in September, boosted by the first-time homebuyer's tax credit. Also construction spending rose 0.8% in the month of September.
Back home, as per provisional data, foreign funds dumped stocks worth a net Rs 576.05 crore on 30 October 2009 whereas domestic funds bought equities worth a net Rs 592.93 crore.
The Reserve Bank of India at its monetary policy review early this week left its key rates unchanged, but raised the wholesale price-based inflation projection for end-March 2010 sharply to 6.5% with an upward bias, from 5 % earlier.
The IMF said on 29 October 2009 the economies of India, China and Australia were recovering especially rapidly, suggesting it notices growing pressures for authorities there to tighten monetary policy ahead of others in the region. It called the three economies special cases, while adding a tightening of monetary policy seemed unnecessary elsewhere in the region in the near future.
It also advised Asian central banks not to raise interest rates only to calm asset price growth, saying lifting rates ahead of advanced economies could attract "carry trade-type" capital inflows and aggravate asset price pressures.
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.
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.
The government has approved a follow-on public offering of 20% of state run Steel Authority of India, the steel minister said on 21 October 2009. The Government of India owns nearly 86% of Sail. Also the government gave its approval for 15% follow on public offer for Rural Electrification Corporation on 29 October 2009.
Stocks to Watch - Nov 3 2009
Joining the tariff war, India`s largest mobile operator Bharti Airtel on Friday introduced a `pay per second` plan across the country. In this plan, called Freedom Plan, Airtel customers will be charged one paise per second for all Local and STD calls to Airtel numbers and 1.20 paise per second for local and STD calls to other networks.
Reliance Capital disclosed a considerable drop in consolidated net profit for the quarter ended June 2009. During the quarter, the group has posted a 32.08% decline in consolidated net profit after minority interest and share of profit of Rs 1,558.30 million for the quarter ended Sep. 30, 2009 as compared to Rs 2,294.20 million for the quarter ended Sep. 30, 2008.
State-run Mahanagar Telephone Nigam (MTNL) announced a fall of 77.50% in the net profit for the quarter ended Sep.30, 2009. During the quarter, the company reported a profit of Rs 205.84 million as against profit of Rs 914.93 million for the quarter ended Sep. 30, 2008.
KEC International, engaged in power transmission engineering, procurement, and construction today announced that its board of directors has approved the merger with RPGCL, subject to necessary approvals. The exchange ratio recommended by both boards is 1 share of KEC for every 20 shares of RPGCL.
ICICI Bank, India`s leading private sector lender announced a jump in consolidated net profit for the quarter ended September 2009, driven primarily by the sharp reduction in losses of ICICI Prudential Life Insurance Company and increase in profit of other subsidiaries. During the quarter, the profit of the bank rose 75.69% to Rs 11,445.70 million from Rs 6,514.80 million in the same quarter last year. Consolidated total income for the quarter fell 6.38% to Rs 145,958.50 million compared with the prior year period.
Steel Authority of India (SAIL), leading steel manufacturer, reported a net profit of Rs 16,634.90 million for the quarter ended September 30, 2009 whereas the same was at Rs 20,096.00 million for the quarter ended September 30, 2008.
Reliance Infrastructure disclosed a small rise in standalone net profit for the quarter ended September 2009. During the quarter, the profit of the company rose 6.20% to Rs 3,069.00 million from Rs 2,889.70 million in the same quarter previous year.
Unitech reported a phenomenon drop in standalone net profit for the quarter ended September 2009. During the quarter, the profit of the company declined 69.92% to Rs 1,249.90 million from Rs 4,155.60 million in the same quarter previous year.
Bajaj Hindusthan, the sugar maker has plans to buy Balrampur Chini Mills which is more Globe`s biggest M&A dealmakers valuable, profitable and efficient than itself in a deal valued at about Rs 24 billion, partly using assets of the target company.
Sensex to trade weaker
Headlines for the day
Sparsh BPO lowest bidder for BSNL's BPO deal
Reliance Communications ties up with moko.mobi for value-added services
Ministry may review sale of 12 risky drugs
Unitech cuts debt 26% in first half
Mahindra & Mahindra explores CNG, passenger variants for Gio
Events for the day
Major corporate action: Ex-date for consolidation of shares and reduction of capital of Orient Press
Market Commentary
On a day when there are mixed cues coming from the global markets, Sensex is expected to remain range-bound and volatile in the days trade. On back of the rising optimism on the economic recovery front, on Monday, the major US and European indices rose by close to 1% each. However, in today's trade, the major Asian indices gave a mixed bag performance. With Nikkei 225 fell sharply by losing 2.31%, while Hang Seng and Jakarta Composite fell by 0.42% and 0.11% respectively. On the gainers front, China's Shanghai Composite rose the most with gains of 1.17%, while rest all major indices were trading marginally higher. Even Singapore Nifty that opened lower, at the time of writing this report was currently trading 31 points lower to its previous day’s settlement price. Such mixed signals may result in Sensex opening weaker and remain choppy in today's trade. Among the local indices, the Nifty could test the 4750- 4800 range on the up side, while on the down side it could find support at 4620 and 4550. The Sensex is likely to get support at 15400 and may face resistance at 16050.
With better-than-expected numbers of the ISM index, the stocks in the US closed higher on a highly volatile day, wherein major US indices closed with marginal gains. Dow closed with gains of about 77 points or 0.79% higher at 9789, while S&P 500 rose by 0.65% and Nasdaq jumped by 0.20%.
Among the Indian ADRs trading on the US bourses, only MTNL and Satyam traded in red with losses of 1.72% and 2.84% respectively. While rest all ADR's traded in green with gains in the range of 0.83%-6.57% each, wherein Infosys Technologies gaining least and VSNL surged the most.
In the commodity space, Crude oil prices rose marginally, with the Nymex light crude oil for December series surging by $1.13 to close at $78.13 a barrel. In the metals space, the Comex Gold for December series jumped by $13.60 to settle at $1054.00 a troy ounce, while Comex Silver for December series rose by $0.19 to settle at $16.44 a troy ounce.
Daily News Roundup - Nov 3 2009
Tata Steel and Australia’s Riversdale Mining have approved the development of a US$270 mn coal mine in Mozambique with first production scheduled in next year (ET)
India Cements is set to acquire a coal mine in Indonesia for around US$20mn. (BS)
BHEL has bagged an export order worth Rs 2.1bn for a 126mw gas turbine generating unit from the Sultanate of Oman (ET)
NTPC is likely to sign gas sales and purchase agreement (GSPA) with RIL for the supply of two mmscmd of gas needed for its Northbased power projects such as Anta, Auraiya, Faridabad and Dadri in December (ET)
M&M has unveiled a brand new light commercial vehicle "Gio" and priced it at Rs1.65lakhs (ET)
SpiceJet may raise upto US$50 mn through sell of shares to fund expansion and start international flights (ET)
HCL Infosystems will have to give up two large IT contracts worth over Rs 17bn to BSNL (ET)
SAIL has obtained a 20-year iron ore mining licence in Chhattisgarh (ET)
BOC India to invest Rs6bn in setting up an air separation unit (ASU) at Tata Steel’s plant in Jamshedpur. (BS)
Sasken Communication Technologies has acquired the product portfolio, some customer contracts and certain assets of the US-based Ingenient Technologies Inc. (BL)
NTPC may import coal directly next fiscal. (BL)
Intel is in talks with leading Indian telecom companies like Tata Communications, Bharti Airtel and Reliance Communications for minority stake that could bid for broadband wireless access (BWA) spectrum to be auctioned by the government in January 2010. (BS)
US drug major Pfizer is likely to buy the biotech business of Wockhardt for a hefty premium of Rs1bn (ET)
EMAMI Group, has forayed into homoeopathy sector by acquiring Kolkata-based M Bhattacharyya & Co Private, one of the country’s earliest homeopathy companies (ET)
Creditors have asked the promoters of beleaguered Vishal Retail to tap investors to expand the equity capital. (BS)
Madras Cement has decided to go slow on its proposed investment in a sugar mill and is likely to bring in a partner. (BL)
Subir Gokarn, a chief economist of Standard & Poor’s has been appointed as the new deputy governor of the RBI (ET)
The Employees Provident Fund Organisation (EPFO) is seeking approval to implement a finance ministry order to invest up to 15% of the fund in equity. (BS)
Core sector growth in September dipped to 4%.(BS)
Banks have approached RBI to allow loan write-offs to be treated as part of the 70% loan loss coverage mandated by the regulator. (BS)
The RBI is inclined to encourage takeover of weak/sick urban co-operative banks (UCBs) by domestic scheduled commercial banks (SCBs). (BL)
The Power Minister has said that India is exploring the option of leasing coal mines in Australia to tide over domestic coal shortages. (BL)
The government is likely to fix the benchmark sugarcane price for the 2009-10 season at about Rs 130 a quintal, the price which mills will be mandated to pay to farmers for buying it (ET)
The road less traveled!
All journeys have secret destinations of which the traveler is unaware.
While the Indian market enjoyed an extended weekend, the global markets haven’t traveled much ahead. We expect a soft opening with uncertainty accompanied by volatility in the short term. Some more cooling is not ruled out. So, be careful of what you buy or trade. Overall, it appears as though the bulls have run out of steam and reasons to keep lifting the market higher.
India Inc’s report card is out, and though profits have improved, the real demand-led growth is still elusive. Most of the rebound in earnings is due to lower operating costs and stimulus measures. The road ahead will be tough to ride on for India Inc., as the RBI and the Government unwind the extraordinary stimulus steps.
Globally too, the situation is similar. Earnings growth has returned but largely due to government stimulus. Though authorities, both here and abroad will be cautious in reversing the stimulus, it remains to be seen how corporates, households and markets behave sans the stimulus.
Meanwhile, the fire at IOC depot in Jaipur is still showing no signs of cooling off. This may affect IOC’s bottomline in Q3.
FIIs were net buyers in the cash segment on Friday at Rs5.76bn on a provisional basis. The local funds were net buyers of Rs5.92bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs20.70bn.
US stocks closed higher on Monday, led by the blue chips after a volatile day that saw the Dow swing in a 180-point range.
The Dow Jones Industrial Average rose 77 points, or 0.8%, to 9,789.44. The Dow had gained as much as 145 points and lost as much as 34 points earlier. The S&P 500 gained 7 points, or 0.7%, at 1,042.88 and the Nasdaq Composite index rose 4 points, or 0.2%, to 2,049.20.
After the close, Stanley Works said that it would buy Black & Decker in a $4.5 billion all-stock deal.
US stocks rallied in the morning after a key manufacturing index spiked to its highest level in three and a-half years in October. An upbeat reading on pending home sales and Ford Motor's strong earnings report also added to the positive sentiment after last week's selloff.
But the morning rally turned sour in the afternoon due to weakness in financial, technology and transportation shares. By the last hour, short-term investors used the selling as an opportunity to jump back in and scoop up a variety of shares.
Ford delivered its first quarterly profit in more than a year, helped by the government's Cash for Clunkers program. The company said that it earned nearly $1 billion, or 29 cents a share. The automaker was expected to post a loss of 12 cents a share. Ford shares rose 8.3%.
A survey by the Institute for Supply Management showed nationwide manufacturing activity jumped to 55.7 in October, from 53 the previous month. Economists had predicted a more modest gain to 54. Numbers above 50 signal growth, while figures below 50 suggest contraction.
The Commerce Department said construction spending rose unexpectedly by 0.8%. Economists were anticipating a 0.5% decline.
Meanwhile, the National Association of Realtors reported that the number of signed sales contracts to buy homes rose in September for the eighth straight month. Pending home sales rose much more than expected, by 6.1%, in September. Analysts were looking for a 1.2% increase.
Small business lender CIT filed for bankruptcy protection Sunday as part of a reorganization plan that has the support of most of the company's debt holders. It was the fifth-largest in US history.
CIT said it has already worked out a reorganization plan with bondholders that it expects to speed the Chapter 11 process and reduce CIT's debt by $10 billion. The stock plunged on the news, losing 65% in active trading.
The dollar gained versus the yen and the euro.
US light crude oil for December delivery gained $1.13 to settle at $78.13 a barrel on the New York Mercantile Exchange after tumbling in the previous session.
COMEX gold for December delivery rose $19.10 to settle at $1,059.50 an ounce.
Treasury prices slipped, raising the yield on the 10-year note to 3.41% from 3.38% on Friday.
European shares traded firmly higher as investors welcomed a marked improvement in conditions for US manufacturers in October, although Royal Bank of Scotland came under selling pressure at the onset of a new month.
Stocks started on an unsteady note following sharp losses on Friday and loss overall for October but the pan-European Dow Jones Stoxx 600 index rose 0.4% to 237.82 after the Institute for Supply Management reported that the ISM index jumped to 55.7% in October from 52.6% in September. This was well above forecasts.
The French CAC-40 index rose 1.1% to 3,645.95, the UK's FTSE 100 index rose 0.9% to 5,091.362 and the German DAX index rose 0.6% to 5,446.70.
The world suddenly seemed worried this week with bulls resorting to sell-off across the board globally. Some respite came in for the global markets on Thursday after US GDP showed some expansion. All that it could do for the local market was to give it a good start after which the main indices came tumbling into the red. Less enthusiastic earnings coupled with Hawkish stand unveiled in the RBI’s mid-year policy review added to the sharp fall on Dalal Street. Finally, the NSE Nifty closed the week lower by 5.7% and BSE benchmark Sensex was down by 5.4%.
The BSE Sensex hit an intra-week high of 16,939 and low of 15,805 while, NSE Nifty intra-week high of 5,033 and low of 4,687.
On Friday, the BSE Sensex fell 156 points to end at 15,896 after touching a high of 16,360 and a low of 15,805. The index opened at 16,135 against the previous close of 16,052. The NSE Nifty was down 39 points to shut shop at 4,711.
In Asia, the Nikkei in Japan was up 1.4%, while Australia's S&P/ASX ended higher by 1.5% at 4,643. Shanghai SE Composite was down 2.3% and Hang Seng index in Hong Kong closed higher by 2.2%.
In Europe, stocks were flat. The FTSE in the UK was up 0.3%, The DAX in Germany was down 0.2% and the CAC 40 index in France was flat.
Coming back to India, among the BSE sectoral indices, the Oil & Gas index was the top loser, shedding 3%, followed by the Teck index that was down 2% and the BSE Power index was down 1.9%. Even, the BSE Mid-Cap index fell 1% and the BSE Small-Cap index was down 1.1%.
Among the major gainers were, BSE Auto index gained 0.5% and Banking index added 0.5%.
Among the 30-components of Sensex, 19 stocks ended in the red and 11 ended in the positive terrain. RCom, Bharti Airtel, Reliance Infra, Tata Power, Reliance Industries and ONGC were among the major losers.
On the other hand, among the major gainers were Sterlite Industries, ICICI Bank, Grasim and Tata Motors.
Outside the frontline indices, the big losers in the broader market were Bank of India, Renuka Sugar, Idea, Aban Offshore and GE Shipping. On the other hand, gainers included United Spirits, Tulip Tele, Rolta, Ashok Leyland and Voltas.
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