India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Wednesday, November 04, 2009
Post Session Commentary - Nov 4 2009
Breaking the past six days of losing trend, the Indian stock market closed on an upbeat note tracking the strong rally across the Asian markets and strong opening of the European markets. Also the comments from the Finance Minister Pranab Mukherjee that the government does not plan to withdraw the series of stimulus that it had announced earlier in order to revive the economy or impose curbs on the rising capital flows, boosted the investors’ sentiments to book their positions across the board. Moreover, the reports that the business activity among the services companies surged to its highest level in more than a year in October on the back of expansion of new work orders, activity and employment at faster rates, also led the market to gain further grounds. Along with this, the report from the Planning Commission that the economy is expected to expand by 6.3% in the year to March 2010 and the statement from the Trade Minister Anand Sharma that the exports may start its upward trend in annual terms from the quarter ended March 2010 and the government will keep on providing support to the ailing sectors, also lifted the investors’ sentiments. Heavy buying across the sectoral indices led the BSE Sensex closed above the 15,900 mark while Nifty just above 4,700 mark. From the sectoral front, the Realty stocks remained in the lime light as most buying was witnessed from this basket, The Realty index closed with gains of 9.65% followed by Metal (up 5.36%), IT (up 3.99%), Oil & Gas (up 3.83%) and Teck (up 3.38%).
The market witnessed a bit of volatility during the trading session. After a gap up opening the market lost some ground to pare some of its gains but soon gathered momentum to keep on marching forward till the closing of the session to close on an optimistic note. The cues from the global markets are supportive as the Asian market closed with decent gains note tracking the better than expected profit being reported by Korea Exchange Bank. Moreover, the World Bank increased its forecasts for the Chinese economy by saying that the Gross Domestic Product (GDP) will increase 8.4% this year and 8.7% in 2010 due to huge fiscal and monetary stimulus. Moreover the US markets closed on a mixed note. There is two day policy meeting of US Federal Reserve on November 3-4 and it is expected that it will hold the interest rates.
The HSBC Markit Business Activity Index, which was based on a survey of 400 firms, surged to a 13-month high of 56.78 in October after having slipped to a three-month low of 54.37 in September. The index has been above 50. Before that, it shrank for six months, hitting a trough of 40.3 in February.
Among the Sensex pack 27 stocks ended in positive territory and 3 stocks in negative territory. The market breadth indicating the overall health of the market remained strong as 1,774 stocks closed in green while 946 stocks closed in red and 59 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 507.19 points or (3.29%) at 15,912.13 and NSE Nifty closed up by 146.90 points or (3.22%) at 4,710.80. The BSE Mid Caps closed higher by 204.91 points at 5,994.40 and the BSE Small Caps closed up by 147.29 points at 6,888.53. The BSE Sensex touched intraday high of 15,929.09 and intraday low of 15,487.97.
Losers from the BSE Sensex pack are Sun Pharma (0.78%), DLF (9.04%), Grasim Inds (0.39%) and Tata Power (0.19%).
Gainers from the BSE Sensex pack are JP Associates (9.42%), Hindalco Inds (9.16%), DLF (8.48%), Sterlite Inds (6.63%), Reliance Inds (5.49%), Tata Steel (5.33%), ICICI Bank (5.16%), Infosys (4.69%) and ACC (4.02%).
On the global markets front, the Asian markets that opened before the Indian market, closed in green. Taiwan Weighted, Seoul Composite, Hang Seng, Jakarta Composite and Strait Times closed higher by 1.97%, 1.94%, 1.76%, 1.62% and 1.03% at 7,467.04, 1,579.93, 21,614.77, 2,371.85 and 2,648.64 respectively.
European markets, which opened after the Indian market, are trading in positive. In Paris the CAC 40 is higher by 1.51% at 3,638.27, in Frankfurt DAX index is trading up by 1.38% at 5,427.29 and in London FTSE 100 is higher by 0.73% at 5,074.18.
BSE REALTY indexwas at 3,786.82 up by 333.19 points or by (9.65%) The main gainers were Indbul Real up by (15.76%) at Rs.242.45, Unitech Ltd up by (10.04%) at Rs.82.2, Housing Dev up by (10.03%) at Rs.321, Dlf Ltd up by (8.48%) at Rs.365.1, Parsvnath up by (8.05%) at Rs.103.35,
BSE METAL index was at 13,813.32 up by 702.64 points or by (5.36%) The main gainers were Hindalco In up by (9.16%) at Rs.119.15, Sterlite In up by (6.63%) at Rs.770.05, Jsw Sl up by (5.94%) at Rs.721.05, Jindal Saw up by (5.58%) at Rs.693.05, Tata Stl up by (5.33%) at Rs.469.35,
BSE BANKEX index was at 9,437.91 up by 281.75 points or by (3.08%) The main gainers were Icici Bank L up by (5.16%) at Rs.827.8, Allahabad Bk up by (4.76%) at Rs.117.65, Canara Bank up by (4.26%) at Rs.343.9, Idbi Bank L up by (4.06%) at Rs.111.55, Yes Bank up by (4.01%) at Rs.226.95.
BSE POWER index was at 2,859.48 up by 46.70 points or by (1.66%) The main gainers were Tornt Power up by (7.91%) at Rs.295.25, Gvk Powerinf up by (7.59%) at Rs.48.2, Gmr Infrastr up by (7.49%) at Rs.63.15, Lanco Infra up by (5.43%) at Rs.486.2, Rel Infra up by (3.65%) at Rs.1031.65.
BSE OIL&GAS index was at 9,394.82 up by 346.91 points or by (3.83%) The main gainers were Aban Offsho up by (8.1%) at Rs.1194.1, Reliance up by (5.49%) at Rs.1920.65, Essar Oil Ltd. up by (4.98%) at Rs.128.5, Cairn Ind up by (3.13%) at Rs.264.95, Ril Nat Res up by (2.33%) at Rs.68.1.
BSE IT index was at 4,444.04 up by 170.66 points or by (3.99%) The main gainers were Rolta Ind up by (8.13%) at Rs.162.25, Niit Ltd up by (5.66%) at Rs.57.85, Patni Comput up by (4.7%) at Rs.456.95, Infosys Technologies Ltd.-Ordi up by (4.69%) at Rs.2239.6, Aptech Ltd up by (3.97%) at Rs.174.1,
Tata Communications closed up by 0.76% at Rs. 357. The company and Carlson Wagonllt Travel announced that they will team up to provide CWT Telepresence- an enhancement to the company’s broader demand management offering- which will allow CWT clients to access Tata Communications network of public Cisco Telepresence Suites around the World.
IVRCL surged 4.55% to close at Rs. 353.85 as the company in joint venture with M/s Unity Infraprojects has bagged orders valued at Rs. 1,145.88 crore under International Competitive Bidding.
JSW Steel shot up 5.94% to close at Rs. 721.05. The company has reported a growth of 34% in crude steel production in October 2009 compared to that of corresponding month in the last fiscal. The crude steel production in the onth of October stood at 4.53 lakh tons while Rolled product-flat at 2.96 lakh tons and rolled products-long at 0.75 lakh tons.
Sensex inches towards 16k
Ashok Leyland’s October 2009 volumes increased by 57% year on year; the stock ends 2.49% higher.
Vishal Retail inks CDR pact for Rs730 crore; the stock ends the day 2.02% up.
Reliance Communications joins per-second billing war; the stock ends 2.08% higher.
Tata Chemicals launches i-Shakti cooking soda; the stock is up by 2.17%.
Mahindra Satyam ties up with defense firm Saab; the stock ends the day 4.24% higher.
Click here for more stories
Post market summary
Global signals
* The day started with the mixed bag overnight performance by the US markets and weak cues from the European indices. While the European indices that opened strong today helped the Sensex to surge higher. The major European indices were trading higher with marginal gains, wherein FTSE 100 was trading at 5071 with gains of 34 points or 0.68%, at the time of writing this report.
* In today's trading session, all the major Asian indices closed in green with gains in the range of 0.46-3.29%, wherein the Sensex rose the most, followed by Taiwan Weighted that was up by 1.97%. The Shanghai Composite that outperformed other Asian indices in the last few days rose the least. SGX Nifty that opened strong ended the day with heavy gains of 172 points, erasing yesterday’s losses.
Indian indices
* Are the bulls back on the Dalal Street? It is still uncertain and too early to say. However after six consecutive sessions of losses, the domestic stock market surged by over 500 points that piggy backed the performance of the global indices, which rallied strongly today. As expected, the bellwether opened stronger today owing to positive cues from the Asian markets.
* The Sensex opened gap-up with gains of 83 points, and never saw this level in the day’s trade. It surged further from that point and made a high of 15929 in the closing trades. However it closed slightly lower from that highs and ended the day at 15912, gaining 507 points or 3.29% in intra-days trade and closed above the significant psychological level of 15900, inching closer to 16000 level.
* The market rallied strongly on the back of heavy buying in realty, metal and information technology (IT) stocks, erasing its yesterday's losses. Nifty gained 146 points to end the day at 4710, above 4700, an important level on technical front.
Sensex sentiment
* The market breadth was very positive, as out of 2,779 stocks traded on the BSE, 1,774 stocks advanced, whereas 946 stocks declined. Fifty-nine stocks closed unchanged. The volumes rose across the board.
Sectoral and stock screening
* Among the sectoral indices, every index closed in green today, after yesterday’s all red. BSE Realty advanced the most with gains of 9.65%, followed by BSE Metal that rose over 5.36%. Other sectoral indices ended the day higher in the range of 1.04% to 3.99%.
* On the stocks front. Indiabulls Real Estate jumped the most, surging by 15.76%, followed by Educomp Solutions that gained over 15.55%, Religare Enterprises, Unitech and HDIL surged by over 10% each. Among the losers, Suzlon Energy fell the most by 5.32%, followed by Union Bank that slid by 1.46% and Cummins India that was down by 1.17%.
Viewing volumes
* On the turnover front, over 3.27 crore shares of Suzlon Energy changed hands on the BSE followed by Unitech (1.79 crore shares), Reliance Natural Resources (1.05 crore shares), Ispat Industries (0.81 crore shares) and IFCI (0.54 crore shares).
BSE Bulk Deals to Watch - Nov 4 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
4/11/2009 523204 ABAN OFFSHO GENUINE STOCK BROKERS PVT. LTD. B 202931 1137.31
4/11/2009 523204 ABAN OFFSHO GENUINE STOCK BROKERS PVT. LTD. S 202931 1139.80
4/11/2009 531682 CAT TECHNOL NEWGEN INTERNATIONAL PRIVATE L B 230000 14.60
4/11/2009 531682 CAT TECHNOL VINODAMRATLALNAAI B 178075 14.85
4/11/2009 531682 CAT TECHNOL S V ENTERPRISES B 160073 14.96
4/11/2009 531682 CAT TECHNOL VINODAMRATLALNAAI S 349272 14.83
4/11/2009 531682 CAT TECHNOL S V ENTERPRISES S 363173 14.60
4/11/2009 531337 CHAN GUIDE I PREMLATARAMESHSARAOGI S 35000 87.80
4/11/2009 532363 COMP-U-LEARN RAMESHKORITALA B 104189 32.74
4/11/2009 532363 COMP-U-LEARN RAMESHKORITALA S 106930 32.63
4/11/2009 533055 EDSERV SOFT HITESHSHASHIKANTJHAVERI B 142225 189.46
4/11/2009 533055 EDSERV SOFT HITESHSHASHIKANTJHAVERI S 139121 189.36
4/11/2009 504351 EMPOWER INDS CHANDRAKANTBSHAH B 280000 29.45
4/11/2009 532379 FIRSTOBJ JMP SECURITIES PVT LTD B 1105114 1.50
4/11/2009 533048 GI ENGINERG SHRIPARASRAMHOLDINGPVTLTD S 44754 15.78
4/11/2009 532072 INTER DIGI NARENDRA VALLABHAJI BAHUVA B 270063 3.32
4/11/2009 523467 JAI MATA GLA GRISHMA V JHAVERI S 100000 2.66
4/11/2009 509048 LANCOR HOLDS MANMOHANDAMANI S 170000 113.44
4/11/2009 531834 NATURA HUE C JINESH DEVENDRA BHATT S 64205 27.18
4/11/2009 524654 NATURAL CAPS VIVOG COMMERCIAL LTD S 28605 37.41
4/11/2009 531496 OMKAR OVERSE HARISHCHANDRA S RAJBHAR B 25000 54.40
4/11/2009 531496 OMKAR OVERSE VARSHA RAJNIKANT AGARWAL S 50579 55.02
4/11/2009 530555 PARAMO COMMU SMART EQUITY BROKERS PVT LTD S 709961 13.09
4/11/2009 531769 PFL INFOTECH MVM SECURITIES PVT LTD B 25000 10.18
4/11/2009 531769 PFL INFOTECH MAHENDRAAMRITLALSHAH S 22113 10.18
4/11/2009 590077 RANKLIN SOLU SRIKANTHMIKKILINENI B 34803 34.02
4/11/2009 590077 RANKLIN SOLU MEDEPUDI NAGENDRA BABU B 26150 34.04
4/11/2009 590077 RANKLIN SOLU MEDEPUDI NAGENDRA BABU S 25900 34.23
4/11/2009 590077 RANKLIN SOLU SREE LAKSHMI MIKKILINENI S 25200 34.07
4/11/2009 531693 SHR GANE SPI SANJAY DHANJI GALA(HUF) B 600000 2.00
4/11/2009 531693 SHR GANE SPI JASMINSBAJORIYA S 351820 2.00
4/11/2009 533121 THINKSOFT VIJETA BROKING INDIA PRIVATE LIMITED B 67941 237.74
4/11/2009 533121 THINKSOFT DEEPAK SHANTILAL CHHEDA B 69259 236.06
4/11/2009 533121 THINKSOFT AMIT MANILAL GALA B 63252 237.20
4/11/2009 533121 THINKSOFT GENUINE STOCK BROKERS PVT. LTD. B 75670 239.90
4/11/2009 533121 THINKSOFT TRANSGLOBAL SECURITIES LTD. B 236522 235.59
4/11/2009 533121 THINKSOFT MBL & Co. LTD. B 64064 235.70
4/11/2009 533121 THINKSOFT MATRIX EQUITRADE PVT. LTD. B 124900 240.23
4/11/2009 533121 THINKSOFT CHIMANLALPOPATLALMATALIA B 57232 235.90
4/11/2009 533121 THINKSOFT OPG SECURITIES P LTD B 516439 237.34
4/11/2009 533121 THINKSOFT MANSUKH STOCKS BROKERS LTD. B 56018 234.31
4/11/2009 533121 THINKSOFT MANSUKH SECURITIES & FINANCE LTD B 54846 235.48
4/11/2009 533121 THINKSOFT R.M.SHARES TRADING PVT.LTD B 58076 234.47
4/11/2009 533121 THINKSOFT RAKHIKALPESHBHANDARI B 92000 237.15
4/11/2009 533121 THINKSOFT NAVEEN TAPARIA B 74107 236.47
4/11/2009 533121 THINKSOFT VIJETA BROKING INDIA PRIVATE LIMITED S 67941 238.03
4/11/2009 533121 THINKSOFT DEEPAK SHANTILAL CHHEDA S 69259 236.43
4/11/2009 533121 THINKSOFT AMIT MANILAL GALA S 63252 237.15
4/11/2009 533121 THINKSOFT GENUINE STOCK BROKERS PVT. LTD. S 75670 240.02
4/11/2009 533121 THINKSOFT TRANSGLOBAL SECURITIES LTD. S 235522 235.45
4/11/2009 533121 THINKSOFT MBL & Co. LTD. S 64064 235.56
4/11/2009 533121 THINKSOFT MATRIX EQUITRADE PVT. LTD. S 124900 240.15
4/11/2009 533121 THINKSOFT CHIMANLALPOPATLALMATALIA S 57232 236.14
4/11/2009 533121 THINKSOFT OPG SECURITIES P LTD S 516439 237.49
4/11/2009 533121 THINKSOFT MANSUKH STOCKS BROKERS LTD. S 56018 234.40
4/11/2009 533121 THINKSOFT MANSUKH SECURITIES & FINANCE LTD S 54856 235.38
4/11/2009 533121 THINKSOFT R.M.SHARES TRADING PVT.LTD S 58076 234.46
4/11/2009 533121 THINKSOFT RAKHIKALPESHBHANDARI S 92000 237.07
4/11/2009 533121 THINKSOFT NAVEEN TAPARIA S 74107 235.93
4/11/2009 524576 VIVID IND CHOICE INTERNATIONAL LIMITED B 75000 14.18
4/11/2009 524576 VIVID IND ALKEN MANAGEMENT & FINANCIAL S S 57225 14.02
4/11/2009 531249 WELL PACK PA RAJESH RAVINARAYAN HATI B 29000 273.10
NSE Bulk Deals to Watch - Nov 4 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
04-NOV-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,221021,1136.70,-
04-NOV-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,BUY,510056,781.77,-
04-NOV-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,BUY,161839,63.66,-
04-NOV-2009,GISOLUTION,GI Engineering Solutions,SHRI PARASRAM HOLDINGS PVT. LTD.,BUY,51000,14.36,-
04-NOV-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,8914500,18.50,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,AANGI SHARES & SERVICES PVT. LTD,BUY,109592,237.04,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,ARCHITA C GADA,BUY,112089,237.82,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,AUM SECURITIES PRIVATE LTD.,BUY,65620,237.97,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,BHAVIN SURESH CHHEDA,BUY,57025,237.35,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINESH MUNJAL,BUY,52362,237.87,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,60553,240.33,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,117763,235.91,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,BUY,113690,235.23,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,BUY,64487,235.55,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,56842,236.28,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,NEPTUNE FINCOT PVT LTD,BUY,191560,239.64,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,BUY,242198,236.68,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,PRASHANT JAYANTILAL PATEL,BUY,69261,233.53,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,R.M. SHARE TRADING PVT LTD,BUY,61385,234.32,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,214895,235.20,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,VAIBHAV DOSHI,BUY,68633,237.81,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,VIJETA BROKING INDIA PRIVATE LIMITED,BUY,68698,237.85,-
04-NOV-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,221021,1137.28,-
04-NOV-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,SELL,510056,782.18,-
04-NOV-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,SELL,92720,64.47,-
04-NOV-2009,GISOLUTION,GI Engineering Solutions,RAVI KOTHARI,SELL,67165,14.27,-
04-NOV-2009,GISOLUTION,GI Engineering Solutions,SHRI PARASRAM HOLDINGS PVT. LTD.,SELL,6000,15.63,-
04-NOV-2009,ICSA,ICSA (India) Limited,LLOYD GEORGE INVESTMENT MGMT (BERMUDA) LTD A/C ASIAN SMALL C,SELL,380000,156.27,-
04-NOV-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,8596309,18.54,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,AANGI SHARES & SERVICES PVT. LTD,SELL,129592,241.79,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,ARCHITA C GADA,SELL,112089,237.94,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,AUM SECURITIES PRIVATE LTD.,SELL,65620,238.43,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,BHAVIN SURESH CHHEDA,SELL,57025,236.36,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINESH MUNJAL,SELL,52362,237.51,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,60553,240.39,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,117763,235.76,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,SELL,114690,235.60,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,SELL,64487,235.90,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,56661,236.07,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,NEPTUNE FINCOT PVT LTD,SELL,191560,239.75,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,SELL,242198,236.79,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,PRASHANT JAYANTILAL PATEL,SELL,69261,233.53,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,R.M. SHARE TRADING PVT LTD,SELL,61385,234.54,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,214895,235.53,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,VAIBHAV DOSHI,SELL,68633,237.04,-
04-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,VIJETA BROKING INDIA PRIVATE LIMITED,SELL,68698,238.07,-
Equities snap six-day losing streak as dollar slides
Bulls staged a strong return after suffering a sharp setback in previous six trading sessions. Strong buying demand in battered index pivotals following six-days of sharp market slide triggered a solid rally on the bourses. Weakness in US dollar against major rivals and firm global stocks laid a solid platform for today's rally. Comments by Finance Minister Pranab Mukherjee on Tuesday, 3 November 2009, that there are no immediate plans to place curbs on capital inflows, also boosted sentiment. The BSE 30-share Sensex jumped 507.19 points or 3.29%. Indian markets were the best performers among their global counterparts.
With short-term interest rates very low, global traders have turned to borrowing funds cheaply in the US and then reinvesting the proceeds in equities and commodities, looking to lock in higher returns and benefiting from further erosion in the dollar. The dollar edged down on Wednesday after hitting a one-month against a basket of major currencies. The Dollar Index, which measures the currency's value against six major units including the euro, slipped 0.3% to 76.140, pulling away from 76.817 hit on Tuesday, 3 October 2009, its highest level since early October 2009
The rally on the bourses was broad-based with all sectoral indices on BSE logging gains. Heavyweight stocks Reliance Industries, ICICI Bank, Bharti Airtel, ONGC and Infosys spurted. Realty, metal and banking shares were at the forefront of the rally. Auto stocks gained riding on the back of robust monthly sales for October 2009. Tea stocks gained after Junior Finance Minster said the government is considering package for the industry. But telecom pivotals pared early gains. The market breadth was strong.
A bout of early volatility was witnessed in early trade. After an initial surge triggered by higher Asian stocks, the market soon pared gains. The market soared in mid-morning trade after a report showed that business activity among services companies in India climbed to its highest level in more than year in October 2009 as new work orders, activity and employment expanded at faster rates. The market soared in afternoon trade. The market extended gains in mid-afternoon trade with the Sensex hitting a fresh intraday high. The market extended rally in late trade
Trade Minister Anand Sharma today said exports may start growing in annual terms from the March 2010 quarter and the government would continue to provide support to ailing sectors.
The economy is expected to expand by 6.3% in the year to March 2010, the Planning Commission said in a report on Wednesday. The plan panel expects wholesale price inflation to go beyond 4-5% by end of March 2010.
The HSBC Markit Business Activity Index, based on a survey of 400 firms, rose to a 13-month peak of 56.78 in October 2009 after having dropped to a three-month low of 54.37 in September 2009. The index has been above 50, which separates expansion from contraction, for six months. Before that, it shrank for six months, hitting a trough of 40.3 in February 2009.
The business expectations sub-index recorded its fastest expansion since March 2008, at 79.47 in October 2009, compared with 74.82 in September 2009. Better market conditions, promotional strategies and good reputations were the main reasons for the increased confidence, the survey said
Meanwhile, power generation in October 2009 rose 4.5% from a year ago, slowing from a 6% rise in the previous month as coal supply dwindled
Coming back to stocks, Finance Minister's comments have put to rest speculation of government clamping capital controls after a deluge of foreign portfolio inflows this year. Brazil, another emerging economy, had last month slapped a 2% tax on foreign investments into equities and fixed income instruments.
Montek Singh Ahluwalia, the deputy chairman of Planning Commission today said revival of foreign investment flows into India is a welcome move and the country can absorb them. Ahluwalia said he was not concerned about the surge in foreign portfolio investments.
European markets rose on Wednesday as investors braced for the Federal Reserve's statement on interest rates and the economy. Key benchmark indices in Germany, France and UK were up by between 0.78% and 1.50%.
Business activity in Britain's dominant services sector rose at the fastest pace in more than two years in October 2009, according to the CIPS/Markit services purchasing managers index released on Wednesday. The index rose to 56.9, its highest level in 26 months, from a reading of 55.3 in September. Economists had forecast a more modest rise to 55.5. A reading of more than 50 means a majority of managers saw growth in activity, while a figure of less than 50 signals contraction.
Activity in the euro-zone private sector grew at the fastest pace since December 2007, the final Markit euro-zone composite purchasing managers index showed Wednesday. The composite PMI rose to 53 in October 2009 from 51.1 in September 2009, matching a preliminary estimate. A reading of more than 50 signals a rise in activity, while a figure of less than 50 signals a contraction
Asian stocks rose today 4 November 2009, led by banks and mining companies, as Korea Exchange Bank reported better-than-estimated profit and gold prices climbed to a record. Key benchmark indices in Japan, China, Hong Kong, Singapore, South Korea, and Taiwan were up by between 0.42% and 1.97%.
The World Bank on Wednesday raised its forecasts for Chinese growth this year and projected a slightly faster pace of expansion in 2010, but it said Beijing did not need to embark on major policy tightening at this stage. Gross domestic product will increase 8.4% this year and 8.7% in 2010 on the back of massive fiscal and monetary stimulus, the bank said in a regular update on China's economy.
Worries about a looming bubble in China's real-estate market are misplaced, as gains in home prices have not dramatically outpaced rising incomes on a nationwide level, the World Bank said in a report. The view stands in contrast to recent talk that China could be repeating the policy errors that led to property bubbles in Japan in the 1980s and more recently in the US and UK. Still, the World Bank cautioned that there was a lack of clarity on home affordability and that better data were needed.
US markets ended on a mixed note on Tuesday, 3 November 2009 as technology stocks struggled after a downgrade on Intel and caution prevailed before a Federal Reserve statement on interest rates and the economy. The Dow Jones industrial average was down 17.53 points, or 0.18%, to 9,771.91. However the S&P 500 index added 2.53 points, or 0.24%, to 1,045.41 and the Nasdaq Composite index rose 8.12 points, or 0.4%, to 2,057.32.
In economic data, factory orders rose 0.9% in September 2009, after a 0.8% drop in August 2009. Economists were expecting a gain of 1%.
Billionaire investor Warren Buffett's Berkshire Hathaway on Tuesday agreed to buy Burlington Northern Santa Fe Corp in a deal that values the railroad company at $34 billion, Berkshire's biggest deal ever.
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.
The International Monetary Fund on Tuesday, 3 November 2009, projected higher debt levels for the world's major economies, but said the global economic recovery was still too fragile to begin withdrawing fiscal support.
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.
Trading in US index futures indicated Dow could rise 60 points at the opening bell today, 4 November 2009.
Closer home, Finance Minister Pranab Mukherjee said on Tuesday that the government has to continue with its fiscal stimulus and is confident of attaining it medium-term fiscal targets. He said non-farm credit growth remained an area of concern and said banks have been told to enhance credit growth.
The summer-sown crop output is set to shrink by more than initial forecasts after a worst monsoon rains in 37 years, raising the spectre of higher food prices and its further dependence on imports of rice and sugar. Output of rice planted in the monsoon months from June could record a bigger-than-expected fall of 18% on year, while cane output was likely to drop by 9%, the government's first estimates of the summer-sown crop showed on Tuesday. The government issues four estimates of harvests as it gathers more data.
Mukherjee said returning the economy to growth of 9% would take more than a year, adding that the poor monsoon and then floods in some parts of the country had obvious implications for agriculture and food prices. Mukherjee said he was confident of meeting medium-term fiscal targets, and expected higher tax receipts in the second half of the fiscal year ending March 2010.
Mukherjee said it was imperative for the government to pursue reforms, including in the financial sector, to make the economy more competitive and the regulatory system more efficient and more sensitive to new developments. The finance minister said the government had identified a few more state-run companies that it could sell stakes in, with the timing of any sale dependent on market conditions.
A report prepared by ministry of finance indicated that the economy is showing a distinct sign of pickup, although uncertainty related to the poor summer monsoon and the global economic outlook remain. The 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%.
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.
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.
The Reserve Bank of India 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.
Planning Commission deputy chairman Ahluwalia today, 4 October 2009, said high food price inflation is a concern but it should moderate by the end of this year.
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.
The BSE 30-share Sensex surged 507.19 points or 3.29% to 15,912.13. The Sensex opened 83.03 points higher at 15,487.97, also the day's low. The Sensex rose 524.15 points at the day's high of 15,929.09 in late trade.
The S&P CNX Nifty was up 146.90 points or 3.22% to 4710.80 Nifty November 2009 futures were at 4,711.85, near spot closing. Turnover in NSE's futures & options (F&O) segment was Rs 72,239.34 crore, lower than Rs 81,574.39 crore on Tuesday, 3 November 2009.
From a 17-month closing high of 17,326.01 on 17 October 2009, the Sensex has lost 1413.08 points or 8.16%. The barometer index had lost 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.
Yet, the Sensex is up 6264.82 points or 64.93% in calendar year 2009, as on 4 November 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7751.73 points or 94.99%, as on 4 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 strong. On BSE, 1791 shares advanced as compared with 983 that declined. A total of 58 shares remained unchanged.
The BSE Mid-Cap index rose 3.54% at 5,994.40, outperforming the Sensex. The BSE Small-cap index gained 2.18% at 6,888.53. It, however, underperformed the Sensex.
The total turnover on BSE amounted to Rs 5120 crore as compared with Rs 5121 crore on 3 November 2009
All BSE sectoral indices ended with gains. The BSE Auto index (up 2.61%), the BSE Bankex (up 3.08%), the BSE Consumer Durables index (up 1.84%), the BSE PSU index (up 1.83%), the BSE FMCG index (up 2.08%), and the BSE Healthcare index (up 2.07%), the BSE Power index (up 1.66%), the BSE Capital Goods index (up 1.04%), underperformed the Sensex.
The BSE IT index (up 3.99%), the BSE Realty index (up 9.65%), the BSE Metal index (up 5.36%), and the BSE Oil & Gas index (up 3.83%), outperformed the Sensex.
Among the 30-member Sensex pack, 27 gained while only 3 of them slipped. Grasim (down 0.49%), and Sun Pharmaceuticals (down 0.79%), edged lower from the Sensex pack.
India's largest dam builder by sales Jaiprakash Associates (JAL) galloped 10.96% to Rs 215.65 on recent 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. It was the top gainer from the Sensex pack
Meanwhile, Jaiprakash Associates' cement shipments rose 41.3% to 0.816 million tonnes in October 2009 over October 2008. The announcement was made before market hours today, 4 November 2009.
Construction stocks saw across the board rally on the back of fresh buying. Hindustan Construction Company (up 6.22%), Nagarjuna Construction (up 8.68%), Gammon India (up 1.29%), and Punj Lloyd (up 3.32%), gained.
IVRCL Infrastructures & Projects rose 5.27% after a joint venture of the company secured an order worth Rs 1145.88 crore. The company announced the new order win during trading hours today, 4 November 2009.
Ahluwalia Contracts (India) rose 4% after the company said its order book stands at Rs 4870 crore executable over two years. The company made this announcement during trading hours today, 4 November 2009.
Rate sensitive realty shares were the start performers of the day's trading session. Realty stocks staged a comeback on bargain hunting after a sharp recent decline triggered by the RBI's raising the provisioning requirements for loans to commercial real estate from 0.4% to 1% in its monetary policy review meet on 27 October 2009. DLF (up 9.64%), Unitech (up 11.91%), HDIL (up 11.36%), Indiabulls Real Estate (up 16.88%), and Parsvnath Developers (up 7.63%), gained.
Metal stocks rose as prices of copper, lead, nickel, tin and zinc advanced on the London Metal Exchange. India's largest private sector aluminium maker by sales Hindalco Industries jumped 8.80%. The stock had tumbled more than 10% on 3 November 2009 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.
India's largest private sector steel maker by sales Tata Steel spurted 5.82%. The company's Vice Chairman was quoted by the media as saying that its European unit Corus is expected to be operating at full capacity by the end of the fiscal year in March. Corus, Europe's second-largest steelmaker, operated at 80% capacity in October 2009
Sterlite Industries India (up 6.14%), National Aluminium Company (up 1.62%), Hindustan Zinc (up 5.42%), and Sesa Goa (up 5.26%), were the other gainers from the metal pack.
JSW Steel surged 6.16% after its steel production rose 34% to 453,000 tonnes in October 2009 over October 2008. Production of flat products, used in automobiles, rose 19% to 296,000 tonnes, while long products, used in construction and railway lines, rose 145% to 75,000 tonnes, it said in a statement.
Steel Authority of India rose 2.07%. The company's chairman said today the company has cut flat product prices by Rs 750 - 1,500 a tonne.
India's largest firm by market capitalisation and oil refiner Reliance Industries (RIL) jumped 5.63% to Rs 1923.10. The stock gyrated in a band of Rs 1840- 1927.40 in the day. A final verdict on a gas dispute between Mukesh Ambani led Reliance Industries (RIL) and Anil Ambani led Reliance Natural Resources (RNRL), could be delayed after a judge withdrew from a Supreme Court hearing citing potential conflict of interest.
The hearing is expected to continue on Thursday, but arguments will have to begin again from scratch before a new bench.
In the previous hearing on 27 October 2009, the Supreme Court had observed that gas is a national resource owned by the Government and, therefore, subject to Government policy. The Court also asked why the brothers cannot settle the matter through arbitration or mutual consensus. The two brothers are fighting a legal battle in the apex court over division of natural gas produced by RIL from KG-D6. The Supreme Court began hearing arguments on the dispute from 20 October 2009.
Reports that the Comptroller and Auditor General of India (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 had triggered a near 6% slump in the stock on Tuesday, 3 November 2009. 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.
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) rose 1.22%. As per recent 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.
Other oil exploration firms also gained on rise in crude oil prices. Cairn India rose 3.66% while Oil India gained 2.46%. Rise in crude oil prices will boost realisations from crude sales.
Oil prices rose on 3 November 2009 as the Federal Reserve began a two-day policy meeting on interest rates. Benchmark crude for December delivery rose $1.47 a barrel to settle at $79.60 on the New York Mercantile Exchange.
Banking shares gained on fresh buying. India's largest private sector bank by net profit ICICI Bank gained 5.06%. 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 second largest private sector bank by net profit HDFC Bank rose 0.85%.
India's largest bank by net profit State Bank of India (SBI) gained 2.83% to Rs 2163, recovering sharply from day's low of Rs 2059.10. 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. The results were announced on 31 October 2009.
Religare Enterprises soared 12.60% on reports the company plans to launch a $500 million (around Rs 2,350 crore) pan Asia private equity (PE) fund for emerging economies.
India's second largest power generation company by sales Tata Power Company lost 0.15% to Rs 1308, rebounding sharply from day's low of Rs 1266.80. The company's net profit declined 30.1% to Rs 183.19 crore on 16.33% drop in total income to Rs 1796.60 crore in Q2 September 2009 over Q2 September 2008. The company announced the results after market hours on 29 October 2009.
Telecom pivotals pared early gains on fears the ongoing price war will suppress profitability. India's second largest telecom company by sales Reliance Communications (RCom) rose 1.81% to Rs 168.90, off day's high of Rs 171.90. The company launched a per-second billing plan on Tuesday, 3 November 2009 under which it will charge 1 paise per second for all local and national calls.
RCom 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.
India's largest cellular services provider by sales Bharti Airtel rose 1.72% to Rs 305.10, off day's high of Rs 311.15. 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.
Auto stocks rose 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. The auto sales figures were announced on 2 November 2009.
India's largest small car marker by sales Maruti Suzuki India rose 3.47% after total sales grew 32.4% to 85415 units in October 2009, compared with 64490 units posted in the same month a year ago.
India's largest tractor maker by sales Mahindra & Mahindra spurted 4.32%. 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 shot up 3.57%. Its total sales grew 18% to 20,011 units last month against 17,014 units in the same period last year.
India's second largest bike marker by sales Bajaj Auto rose 2.17% 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.
India's largest bike marker by sales Hero Honda Motors rose 1.15%. The company reported a marginal increase in October sales at 354,156 units as against 352,449 units in the same month last year.
Ashok Leyland rose 3.03% after commercial vehicle sales jumped 56.99% to 5,333 units in October 2009 over October 2008.
IT stocks advanced on reports India's top technology firms are pursuing Target's captive technology centre for a potential acquisition, in what could be a transaction bundled with a long-term outsourcing contract worth $300-400 million. But Target's today, 4 November 2009, denied the report that it is in talks to sell its captive center in Bangalore. Target is America's second-biggest discount retailer.
In a statement, Target "strongly denied that it is engaged in any discussions, or has any plans, to sell its captive center," which employs 2100 people.
India's largest software company by sales Tata Consultancy Services (TCS) climbed 3% on reports the company secured a 150 million pounds software implementation contract for 15 years from Cardiff city council, UK.
India's third largest software company by sales Wipro rose 2.38% and India's second largest software company by sales Infosys shot up 5.03%.
Allied Digital Services rose 3.83% after the company fixed 12 November 2009 as the record date for a 2-for-1 stock split. The company announced the record date after market hours on Tuesday, 3 November 2009.
Mahindra Satyam jumped 4.35% after the company won an IT outsourcing contract from Swedish defence and aerospace firm, Saab, to develop solutions in India for the global defence and homeland security market. The announcement was made after market hours on Tuesday, 3 November 2009.
Tea stocks rallied after reports citing junior trade minister Jyotiraditya Scindia indicated that the government is considering a package for the tea industry.
Asian Tea (up 4.90%), Assam Company (up 4.85%), Dhunseri Tea (up 5.91%), Goodricke (up 5.38%), Harrisons Malayalam (up 5.76%), Jayshree Tea (up 1.08%), Mcleod Russel (up 5.06%), and Tata Tea (up 1.43%), gained
State Bank of India was the top traded counter on BSE with turnover of Rs 202.39 crore followed by Reliance Industries (Rs 197.13 crore), Suzlon Energy (Rs 183.14 crore), Tata Stel (Rs 174.20 crore), and Educomp Solutions (Rs 170.21 crore).
Suzlon Energy clocked highest volume of 3.27 crore shares on BSE. Cals Refineries (2.65 crore shares), Unitech (1.79 crore shares), Reliance Natural Resources (1.05 crore shares) and Ispat Industries (80.70 lakh shares), were the other volume toppers in that order.
Hindusthan National Glass & Industries rose 2.98% after the company fixed 13 November 2009 as the record date for a 5-for-1 stock split. The company announced the record date after market hours on Tuesday, 3 November 2009.
Chambal Fertilizers & Chemicals gained 2.58% after one of the promoter group companies hiked stake in the firm. The company made this announcement during trading hours today, 4 November 2009.
Aurobindo Pharma rose 6.14%, extending gains for the second consecutive day, 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 declared its results after market hours on Friday, 30 October 2009.
Advanta India surged 7.88% on bargain hunting after the stock plunged more than 27% in the preceding ten trading sessions.
Su-Raj Diamonds & Jewellery rose 2.26% after Emerging India Focus Funds, a foreign institutional investor acquired 58.40 lakh shares representing 9.44% of the equity capital of the firm under preferential allotment. The company made this announcement during trading hours today, 4 November 2009.
Den Networks Grey Market Premium
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| DEN Network Ltd. | 195 to 205 | Discount |
| Astec Life Science | 77 to 82 | 1.5 to 2 |
Precious metals mark new highs
Gold touches new high of $1,084 an ounce
Precious metal prices ended substantially higher on Tuesday, 03 November, 2009. Prices shot up as Indian Central Bank disclosed its ides to purchase 200 metric tons of bullion.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Tuesday, gold for December delivery ended at $1,084.3, higher by $30.9 (2.9%) an ounce on the New York Mercantile Exchange. Earlier, it rose to a high of $1085.2. This was an all time high for the yellow metal. Previous to this, in October, gold had registered record highs quite a few times reaching an all time high of $1071. Year to date, gold prices are higher by 23%.
Gold ended October 2009 higher by 3.8%. For the third quarter it ended higher by 8.7%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On Tuesday, December Comex silver futures ended higher 74 cents (4.5%) at $17.18 an ounce.
Year to date, silver has climbed 59.5% this year. For 2008, silver had lost 24%.
The Commerce Department in US reported on Tuesday, that factory orders rose 0.9% in September, the fifth monthly increase in six months and more than market expectations.
In the currency market on Tuesday, 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. Finally, it rose by 0.1%.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for December delivery closed higher by Rs 501 (3.1%) at Rs 16,618 per 10 grams. Prices rose to a high of Rs 16,639 per 10 grams and fell to a low of Rs 16,129 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed Rs 900 (3.4%) higher at Rs 27,018/Kg. Prices opened at Rs 26,170/kg and rose to a high of Rs 27,139/Kg during the day's trading.
Pre Market - Nov 4 2009
Headlines for the day
Pranab hints at subsidy rollbacks to rein in fiscal
Mahindra Satyam ties up with defence firm Saab
RCom introduces per-second billing plan
Tata Motors, Ashok Leyland rush to increase bus supply
HC stays Trent plans for Star Bazaars in Delhi
Events for the day
Major corporate action: Ex-date for interim dividend of Nestle Industries and Page Industries and the ex-date for the stock split of Shree Ganesh Spinners from Rs10 to Re1
Market Commentary
Global signals
* The stocks in the European markets tumbled by over 1% each on the back of the European Union making case of exiting the fiscal stimulus.
* On the back of the some bearish news in the financial sector, the first day of the Federal Reserve's two-day policy meeting doubled with sharp rally by the oil and gold prices, the US markets gave mixed bag performance. The Nasdaq and S&P 500 closed marginally higher with gains of 0.40% and 0.24% respectively, while Dow fell marginally with loss of 0.18%.
* While in todays trade, the all Asian markets were trading in the green with the gains in the range of 0.37%-1.80% each, except for the Nikkei 225 which was trading marginally lower by 0.07%. After last few days of losses, even SGX Nifty opened higher with decent gains, while at the time of writing this report it was trading stronger with gains of 72 points over its previous close.
Indian markets
* Sensex in todays trade may open gap-up on the back of marginally positive cues from the Asian market, however it may remain volatile and choppy. The domestic markets have corrected sharply by over 11%in last few days. However, today it might recover a part of its yesterday losses.
* Among the local indices, the Nifty could test the 4600- 4750 range on the up side, while on the down side it could find support at 4500 and 4460. The Sensex is likely to get support at 15000 and may face resistance at 15700.
Indian ADR's
* Among the Indian ADRs trading on the US bourses, Infosys, Satyam, Tata Motors, ICICI Bank and MTNL ended the day in green with marginal gains in the range of 0.35%- 2.22%, with Tata Motors gaining the most.
* While rest all ADR's closed in red with losses in the range of 0.21%-7.95% each, with VSNL losing the most.
Commodity cues
*
In the commodity space, Crude oil prices continued to rise, with the Nymex light crude oil for December series surging by $1.47 to close at $79.60 a barrel.
*
In the metals space, the Comex Gold for December series jumped sharply by $31.20 to settle at $1085.20 a troy ounce, while Comex Silver for December series rose by $0.75 to settle at $17.19 a troy ounce.
Daily trend of FII/MF investment in equities
*
On November 03, 2009, FIIs were the net buyers of the Indian Stocks in the tune of Rs735.70 crore (with the gross purchase of Rs4072.50 crore and gross sales of Rs3336.80 crore).
*
While the Domestic mutual funds mutual funds, on October 30, 2009, were the net buyer of the stocks in the tune of Rs114.80 crore (with gross purchase of Rs1336.20 crore and gross sales of Rs1221.40 crore).
Pre Session Commentary - Nov 4 2009
Today domestic markets are likely to open positive amid bounce back in Asian stocks, strong trade in SGX Nifty and mixed to positive close of US Market overnight. One could expect buyers stepping in for Realty and Metal stocks along the curve. The trade would spike towards northward. Today domestic market is likely to trade range bound with positive bias.
On Tuesday, Indian market extending losses for the six straight trading sessions, the Indian market tumbled in the final hours of the session to close on a negative terrain tracking the weakness across the Asian markets. Also the negative opening of the European markets spoiled the investors’ sentiments. 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 deteriorated by 9.76% followed by Metal and Oil and Gas indices, which closed with loss of 5.95% and 4.10% respectively.
The BSE Sensex closed deep down 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.
The US markets closed mixed on Tuesday despite a strong dollar and some sloppy action but material stocks were able to make strong gains as gold prices spiked higher. Session started in negative terrain as the US dollar gained ground against basket of major currencies. Gold spurted smartly by trading higher for the entire session and closed 2.9% higher at $1,084.90 per ounce, but that was after it hit a new record high of $1,087.30 per ounce. The bounce back in greenback’s also brought some cheer into the broader equity market. Participants bought industrial stocks, which closed 1.4% higher. Financial traded erratically before setting with a 0.4% gain. Factory orders for September were the lone piece of data on the economic calendar. Orders increased stronger-than-expected 0.9%, but that didn''t have much of impact on trade. The upcoming economic data will be focus. The ADP Employment Report for October is due, along with the ISM Services Index for October. The FOMC also issues its latest policy statement. US light crude oil futures for December delivery closed up by 1.9% at $79.63 per barrel, on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) ended with loss of 17.53 points at 9,771.91. NASDAQ index climbed 8.12 points to 2,057.32 and the S&P 500 (SPX) closed higher by 2.53 points at 1,045.41.
Indian ADRs ended mixed on Tuesday. In the IT space, Wipro was down 0.08%, Patni was down 1.19%, Infosys was up 0.67% while Satyam was up 0.39%. In the banking space, HDFC bank was down 0.21% while ICICI bank was up 0.88%. In the telecom space, Tata Comm was down 7.95% and MTNL was up 0.35%. In others, Sterlite was down 2.55%, Dr Reddys was down 1.92% while Tata Motors was up 2.22%.
The FIIs on Tuesday stood as net buyer in equity and debt as well. Gross equity purchased stood at Rs. 4,072.50 crore and gross debt purchased stood at Rs. 945.60 crore, while the gross equity sold stood at Rs. 3,336.80 crore and gross debt sold stood at Rs. 474.70 crore. Therefore, the net investment of equity and debt reported at Rs. 735.70 crore and Rs. 470.90 crore respectively.
On Tuesday, the partially convertible rupee ended at 47.40/41 per dollar, 0.9% weaker than previous closing at 46.96/97 per dollar as foreign banks were buying dollars on behalf of overseas fund. Meanwhile, contraction in exports also added to the bearish sentiment for the rupee.
On BSE, total number of shares traded were 41.57 crore and total turnover stood at Rs. 5,120.83 crore. On NSE, total number of shares traded were 86.28 crore and total turnover was Rs. 17,404.01 crore.
Top traded volumes on NSE Nifty – Suzlon Energy with total volume traded 60251141 shares, followed by Unitech with 52983492, Bharti Airtel with 27471661, Reliance Communication with 19823294 and Jaiprakash Associates with 16223300 shares.
On NSE Future and Options, total number of contracts traded in index futures was 836111 with a total turnover of Rs. 18,772.34 crore. Along with this total number of contracts traded in stock futures were 636486 with a total turnover of Rs. 18,585.17 crore. Total numbers of contracts for index options were 1768737 with a total turnover of Rs. 42,333.53 crore and total numbers of contracts for stock options were 64684 and notional turnover was Rs. 1,883.34 crore.
Today, Nifty would have a support at 4,586 and resistance at 4,628 and BSE Sensex has support at 15,494 and resistance at 15,724.
Market seen snapping six-day losses
The market may snap its six-day declining trend mirroring positive Asian indices. US stocks ended on a mixed note on 3 November 2009. The S&P CNX Nifty futures were trading 75.5 points higher in Singapore. The outcome of the Supreme Court's hearing on the long-standing gas dispute case between the Ambani brothers will also influence the market.
Mukesh Ambani led Reliance Industries (RIL) and Anil Ambani led Reliance Natural Resources (RNRL) will see action as a hearing of the gas dispute involving the Ambani brothers resumes today, 4 November 2009, after a break since last week.
In the previous hearing on 27 October 2009, the Supreme Court had observed that gas is a national resource owned by the Government and, therefore, subject to Government policy. The Court also asked why the brothers cannot settle the matter through arbitration or mutual consensus. The two brothers are fighting a legal battle in the apex court over division of natural gas produced by RIL from KG-D6.
Asian markets were trading higher today, 4 November 2009 led by banks and mining companies, as Korea Exchange Bank reported better-than-estimated profit and gold prices climbed to a record. Key benchmark indices in China, Japan, Hong Kong, Singapore, South Korea, and Taiwan were up by between 0.13% and 1.78%.
US markets ended on a mixed note on Tuesday, 3November 2009 as technology stocks struggled after a downgrade on Intel. The Dow Jones industrial average was down 17.53 points, or 0.18%, to 9,771.91. However the S&P 500 index added 2.53 points, or 0.24%, to 1,045.41 and the Nasdaq Composite index rose 8.12 points, or 0.4%, to 2,057.32.
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.
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 also hinted at further rate hikes in the future, with Governor Glenn Stevens saying in a statement that, although inflation should continue to moderate in the near term, it will "probably not" fall as far as earlier thought.
Back home, key benchmark indices extended losses for sixth straight session of trade on 3 November 2009 as sell-off gripped index pivotals in late trade. The BSE 30-share Sensex slumped 491.34 points or 3.09% to 15,404.94, its lowest closing since 3 September 2009 and the S&P CNX Nifty slipped 147.80 points or 3.14% to 4,563.90, its lowest closing since 21 August 2009
The BSE Sensex has shed 1405.87 points or 8.36% in six trading days 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%. Yet, the barometer index 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.
As per provisional data, foreign funds sold stocks worth a net Rs 874.26 crore on 3 November 2009 whereas domestic funds bought equities worth a net Rs 751.95 crore.
A report prepared by ministry of finance indicated that the economy is showing a distinct sign of pickup, although uncertainty related to the poor summer monsoon and the global economic outlook remain. The 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%.
Finance Minister Pranab Mukherjee said on Tuesday that the government has to continue with its fiscal stimulus and is confident of attaining it medium-term fiscal targets. He said non-farm credit growth remained an area of concern and said banks have been told to enhance credit growth.
A news agency on 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.
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.
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.
The Reserve Bank of India at its monetary policy review, last 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.
Daily News Roundup - Nov 4 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)
Fear is here!
Courage is doing what you're afraid to do. There can be no courage unless you're scared.
The bulls seem to have lost courage as bears put on their horror Halloween masks and scared the wits out of the bulls. Another rate hike by Australia; a big loss for UBS and a massive shake up of UK banks spooked sentiment globally. Warren Buffett's blockbuster deal for Burlington Northern Santa Fe could provide bulls some cheer. At the same time the latest chart patterns for the S&P 500 suggest that the uptrend may be running out of gas. All eyes and ears will be on the tone of central banks in US, UK and EU. Most of them may refrain from action in terms of raising rates.
Back home, the FM has reiterated that he is in no hurry to reverse the fiscal stimulus. Disinvestment would happen when the market offers the best possible value. Technically though, the bulls could lose some more ground. On the downside, support may kick in at 4450. On the way up, 4630-4650 could prove to be tricky levels to surpass. We expect a slight rebound at start followed by another choppy session.
FIIs were net sellers in the cash segment on Tuesday at Rs8.74bn on a provisional basis. But, the local funds were net buyers of Rs7.52bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs5.67bn. On Friday, the foreign funds were net buyers of Rs7.36bn in the cash segment. FIIs' net investments in Indian stocks this year is above $14.2bn.
US stocks ended mixed, as investors mulled improved auto sales, surging commodity prices and Warren Buffett's buyout of railroad Burlington Northern Santa Fe. The first day of the Federal Reserve's two-day policy meeting and some bearish news in the UK financial sector also weighed on the sentiment.
The Dow Jones Industrial Average lost 17 points, or 0.2%, to 9,771.91. The S&P 500 gained 2 points, or 0.2% to 1,045.41 and the Nasdaq Composite rose 8 points, or 0.4%, to 2,057.32.
The Dow Jones Transportation index surged 5.3% after Warren Buffett's Berkshire Hathaway said that it will buy railroad operator Burlington Northern Santa Fe.
US stocks managed gains on Monday at the end of a choppy session, but the selling resumed on Tuesday. The S&P 500 has tumbled over 5% in the last two weeks.
Warren Buffett's Berkshire Hathaway is buying Burlington Northern Santa Fe in a $44 billion cash-and-stock deal that the so-called Oracle of Omaha dubbed an "all-in wager on the economic future of the United States." The deal involves Berkshire buying the remaining 77.4% of the company it doesn't already own for around $100 per share. Burlington shares surged 28%.
In other merger news, Stanley Works said late on Monday that it would buy Black & Decker in a $4.5 billion all-stock deal. Stanley Works shares gained 10% and Black & Decker gained 8%.
MasterCard reported higher-than-expected quarterly earnings, reversing a year-ago loss. The credit card processor also reported a higher quarterly revenue that topped estimates. Looking forward, MasterCard said that fiscal-year 2009, 2010 and 2011 revenue growth will come in shy of the long-term objective of 12% to 15%. Its shares fell 1.6%.
Swiss bank UBS reported a bigger quarterly loss that was worse than expected Tuesday and also issued a cautious outlook. Shares fell 3.2%.
Royal Bank of Scotland Group (RBS) said it will sell its insurance unit and some branches as it receives an additional £25.5 billion, or $41.6 billion, in aid from the UK Treasury. RBS shares fell 5%. Lloyds Banking Group will also receive over $9 million in aid.
Initially, the banking sector woes weighed on a variety of bank shares, lowering the KBW Bank index by 1%. But the index erased losses by the close.
Most major US automakers reported that sales bounced back in October following a weak September, as more cars became available. Ford said sales rose 3% versus a year ago, topping forecasts for a decline of 3%. Sales also jumped 21% from September.
Toyota reported sales that were pretty flat versus a year ago, but that was better than the decline of 6% that analysts expected. Results were also up 21% from September. GM said October sales rose 5% versus a year ago, but that was short of expectations.
Dow component Johnson & Johnson said it is cutting 7% of its global workforce as part of a cost-cutting plan that could save the company up to $1.7 billion by 2011. Shares lost less than 1%. Shares were barely changed.
Intel shares slumped 2.7% after Morgan Stanley cut its rating on the company to "equal weight" from "overweight."
The two-day policy meeting of the Federal Reserve got underway on Tuesday, with a statement due on Wednesday afternoon. The Fed is widely expected to hold the fed funds rate, a key bank lending rate, at historic lows near zero. As always, investors will be attuned to what the Fed says about the economic outlook in its statement. The Fed could also provide hints as to when it might start withdrawing some of the trillions in stimulus. It is not expected to boost interest rates until sometime next year.
In the day's key economic news, factory orders rose 0.9% in September after falling 0.8% in the previous month. Economists thought it would rise 0.8%.
The dollar gained versus the yen and fell against the euro. Typically, a stronger dollar would pressure dollar-traded commodities such as oil and gold, but that wasn't the case on Tuesday.
US light crude oil for December delivery rose cents $1.47 to settle at $79.60 a barrel on the New York Mercantile Exchange.
COMEX gold for December delivery rallied $30.90 to settle at $1,084.90 an ounce after earlier hitting an intraday record high of $1,087 an ounce.
Treasury prices fell, raising the yield on the 10-year note to 3.47% from 3.41% on Monday.
European shares ended lower. The pan-European Dow Jones Stoxx 600 Index fell 1.2% to close at 234.90. Every sector ended in the red while the index's gains for the year were pared to about 18.6%.
The UK's FTSE 100 Index lost 1.3% to close at 5,037.21, while Germany's DAX Index declined 1.4% to end at 5,353.35 and the French CAC-40 Index fell 1.5% to settle at 3,584.25.
Anyone who thought that the holiday on Monday would save the bulls was in for a rude shock. It was an absolute carnage on Dalal Street after an extended weekend. All hopes of a rebound after last week's decline were completely shattered amid concerns that the nascent economic recovery could stall as central banks start reversing the stimulus. Australia's central bank raised interest rates for the second time in as many months; UBS posted another big loss and RBS and Lloyds Bank agreed to fresh bank bailout from the UK government.
Savage all round selling dragged the NSE Nifty below the 4,600 mark for the first time since September 3. It was an outright bear assault as the 100 DMA which has acted as a strong support for the index seemed to have lost its significance. What was even worse about today's bloodbath was that it came on higher volume and turnover. Market breadth was highly in favour of the bears.
Apart from the index heavyweights like DLF, Reliance Industries, Hindalco and JP Associates, even the Mid-Caps and the Small-Cap stocks were badly battered.
The realty stocks crumbled amid massive sell-off. The BSE Realty index was the top loser among the BSE sectoral indices, plummeting by over 9.5% in a single trading session.
Shares of DLF lost over 9% to Rs336, Unitech declined over 9% to Rs74, Parsvnath plunged over 9% to Rs95 and Sobha Developers slumped over 10% to Rs201.
On Tuesday, the BSE Sensex fell 491 points to end at 15,404 after touching a high of 15,957 and a low of 15,330. The index opened at 15,838 against the previous close of 15,896. The NSE Nifty was down 147 points to shut shop at 4,564.
In Asia, Australia's S&P/ASX ended lower by 0.2% at 4,531. Shanghai SE Composite was down 2.3% and Hang Seng index in Hong Kong fell by 1.7% on the other hand, the Nikkei in Japan was closed on account of a holiday.
In Europe, stocks were in the red. The FTSE in the UK was down 2%, The DAX in Germany was down 2.1% and the CAC 40 index in France fell 2.2.
Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, shedding 9.7%, followed by the Metal index that was down 6% and the BSE Oil & Gas index was down 4.1%. Even, the BSE Mid-Cap index fell 3.7% and the BSE Small-Cap index was down 4.5%.
Among the 30-components of Sensex, 27 stocks ended in the red and only Bharti Airtel, Maruti and Sun Pharma ended in the positive terrain. Reliance Industries, Infosys, SBI, L&T and Sterlite Industries were among the major laggards.
Outside the frontline indices, the big losers in the broader market were Rolta, Aban Offshore, Gujarat NRE Coke, Syndicate Bank and India Cement. On the other hand, gainers included Jet Airways, Marico, BEL, Indian Hotels and BEML.
Shares of Bharti Airtel staged a smart bounce back and ended adding nearly 2.7% at Rs299. The company posted a net profit of Rs22.96bn for the quarter ended September 30, 2009 as compared to Rs16.04bn for the quarter ended September 30, 2008.
Total Income has increased from Rs83.02bn for the quarter ended September 30, 2008 to Rs89.27bn for the quarter ended September 30, 2009.
Singapore Telecommunications bought additional 1.52 % stake in Bharti and will pay up to Rs30.084bn in three installments ranging over 18 months.
As a result of the acquisition, Sing Tel's effective interest in Bharti Telecom will increase from 32.81 percent to 36.16% and its effective interest in Bharti Airtel from 30.43% to 31.95%.
According to media reports, the possible acquisition deal between Bajaj Hindusthan and Balrampur Chini has been called off. Bajaj Hindusthan was looking to buy promoter stake in Balrampur Chini.
Shares of Balrampur Chini plunged by over 10% to Rs134. On the other hand, Bajaj Hindusthan shares ended marginally higher by 0.5% to Rs196.
Bhavesh Gandhi, Analyst, IndiaInfoline, says "In short term it is beneficial for Bajaj Hindusthan".
Jindal Steel & Power posted a net profit of Rs3.05bn for the quarter ended September 30, 2009 as compared to Rs4.5bn for the quarter ended September 30, 2008. Total Income has decreased from Rs22.31bn for the quarter ended September 30, 2008 to Rs16.18bn for the quarter ended September 30, 2009.
The Group has posted a net profit of Rs8.08bn for the quarter ended September 30, 2009 as compared to Rs7.62bn for the quarter ended September 30, 2008. Total Income has decreased from Rs28.81bn for the quarter ended September 30, 2008 to Rs24.90bn for the quarter ended September 30, 2009.
The stock slipped by 4% to Rs613, it opened at Rs634 and made an intra-day high of Rs638 and a low of Rs600. Total traded volumes stood at 1.4mn shares.
Shares of Genus Power plunged by over 18% to Rs133 after a fire at IOC's Jaipur depot forced the closure of its plant adjoining the affected oil terminal.
The company announced that a 5 km area around the fire spot has been seized by the Government, The estimated loss and status shall be informed after entry of the employees allowed.
The stock opened at Rs155 and made an intra-day high of Rs155 and a low of Rs131.8. Total traded volumes stood at 0.42mn shares.
Shares of IRB Infra advanced by 1% to Rs233 after the Board of Directors approved raising of funds by further issue of securities in Domestic / International markets through various instruments including equity shares / warrants with Non-Convertible Debentures under QIP. The stock opened at Rs228 and made an intra-day high of Rs245 and a low of Rs228. Total traded volumes stood at 0.72mn shares.JSW Steel
We recommend a sell in the stock of JSW Steel from a short-term horizon. It is evident from the charts that the stock’s intermediate-term rally from March low of Rs 161 had ended in late October high of Rs 935. Triggered by the negative divergence displayed in the daily relative strength index, the stock changed its trend. It has been on a short-term downtrend since October high. While declining, the stock breached it 21-day and 50-day moving average as well as intermediate-term uptrend-line. On November 3, the stock plummeted 10 per cent breaking through its significant long-term support level of Rs 700. The daily RSI is featuring in the bearish zone and weekly RSI is falling in the neutral region towards this zone. Moreover, the daily moving average convergence and divergence indicator has entered the negative territory. Our short-term outlook on the stock is bearish. We anticipate it to tumble until it hits our price target of Rs 610. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 715.
via BL
Subscribe to:
Posts (Atom)