Friday, November 06, 2009
Warren Buffett’s Berkshire Hathaway Inc. said it is planning to buy railroad Burlington Northern Santa Fe Corp. The purchase, the largest ever for Berkshire, will cost the company US$26bn, or US$100 a share in cash and stock, for the 77.4% of the railroad it doesn’t already own. The deal is valued at US$44bn. Fitch Ratings said that it may downgrade its ratings on Berkshire Hathaway and its insurance subsidiaries on the proposed deal to acquire the shares of Burlington Northern Santa Fe Corp. Berkshire does not already own. Fitch said that it is concerned how the transaction will affect Berkshire's asset profile and capitalization.
The Federal Reserve indicated yet again that it is no hurry to raise interest rates, saying that the US economy remains weak even though the worst recession in decades appears to be winding down. The US central bank reiterated its long-standing stance to keep interest rates exceptionally low for an extended period because it expects only a weak recovery. As anticipated, the Fed policymakers maintained the target range for the federal funds rate at 0 to 0.25%. "Economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations are likely to warrant exceptionally low levels of the federal funds rate for an extended period," the FOMC said in a statement.
Economic activity has continued to pick up and conditions in financial markets were roughly unchanged, the FOMC said. It added further that activity in the housing sector has increased over recent months. "Household spending appears to be expanding but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit," the FOMC said.
Businesses are still cutting back on fixed investment and staffing, though at a slower pace; they continue to make progress in bringing inventory stocks into better alignment with sales, the FOMC said. With substantial resource slack likely to continue to dampen cost pressures and with longer-term inflation expectations stable, the FOMC expects inflation to remain subdued for some time.
GVK Power & Infrastructure announced that its Board of Directors approved the acquisition of 12% equity share capital of Bangalore International Airport Ltd. (BIAL) at a total cost of Rs4.85bn. GVK Airport Developers Pvt. Ltd. (GVKADPL) will purchase 46.1mn shares from Flughafen Zuerich AG. Zurich Airport is the original co-promoter of the new Bengaluru International Airport Ltd. (BIAL). The Swiss company will keep 5% stake in BIAL and continue to operate the 17-month-old airport. BIAL, built at nearly Rs25bn, is promoted by Siemens Project Ventures, Zurich Airport, L&T as 40:17:17 private sector partners; the Airports Authority of India and the Karnataka-owned KSIIDC hold 13% each. According to reports, the existing partners in BIAL had the first right of refusal for Zurich Airport’s stake. GVKADPL is a wholly owned subsidiary of GVK Power & Infrastructure Ltd (GVKPIL). The acquisition will be completed upon obtaining necessary consents. GVKPIL also entered into a Strategic Alliance Agreement (SAA) with Unique Airports Worldwide AG (Zurich Airport) to collaborate for new airport projects in Indian sub-continent.
UK's Cardiff Council signed a 15 year deal with Tata Consultancy Services (TCS), reportedly worth £150mn (Rs11.64bn). Under the deal, TCS will work alongside Cardiff’s own IT department. Cardiff Council said none of its staff will be transferred to TCS. The deal will support Cardiff’s transformational agenda in which it is attempting to improve shared services across public sector bodies in the city, alongside improvements in citizen services. It beat IBM and BT to the contract. The supplier will integrate different software platforms used by the council, including SAP, as well as focusing on workflow, automating business processes, and improving knowledge management and business intelligence. Cardiff is the first council to work with TCS, which has work in central government including a contract with the Child Maintenance and Enforcement Commission.
Kharif foodgrains output, including rice, coarse cereals and pulses, is expected to be lower by 21.07mn tons for 2009-10 as against the final estimates for the previous year. According to reports, the decline has been attributed to drought in 12 states and floods in some others. The first advance estimates put the kharif foodgrains estimates for 2009-10 at 96.63mn tons as against 117.70mn tons in the first advance estimates of 2008-09. According to the first advanced estimates released by the Government, the country's rice output is expected to decline by 15.13mn tons this marketing season from 84.58mn tons in the kharif season last year. Similarly, production of coarse cereals is projected to decline to 22.76mn tons this kharif season from 28.34mn tons a year earlier. Pulses output is estimated to fall to 4.42mn tons from 4.78mn tons during the same period last year. Oilseeds production is likely to decline to 15.23mn tons from 17.88mn tons. Agriculture Minister, Sharad Pawar, said that he expects rabi foodgrains output to be 8.5mn tons higher than last year’s 116.18mn tons.
India's merchandise exports were down -13.8% at US$13.61bn in September 2009 while imports fell 31.3% to US$21.38bn from the same period last year, the Commerce Ministry said on Tuesday. As a result, the trade gap for the month under review has come down to US$7.77bn from US$15.3bn in September 2008. Oil imports were down 33.5% at US$6.34bn in September 2009 while non-oil imports slumped 30.4% to US$15.03bn. In rupee terms, exports were down 8.4% in September 2009 while imports slid 27% from the same month a year earlier.
Cumulatively (April-September 2009-10), exports fell by 28.5% to US$77.86bn while imports on the same basis were down 32.7% to US$124.58bn, the Commerce Ministry data revealed today. The trade deficit for the first six months of FY10 shrunk to US$46.73bn versus US$76.10bn in the year-ago period. Oil imports during the first half of FY10 were down 45% at US$34.81bn while non-oil imports during the same period were down 26.2% to US$89.77bn.
Food prices continue to climb in India, according to the latest data released by the Government. For the week ended Oct. 24, the annual inflation, calculated on a point-to-point basis, stood at 13.39% as against 12.85% in the previous week, while the same for the Primary Articles group inched up to 8.94% from 8.67%. Inflation for the Fuel & Power index was at (-)6.2%, unchanged from the week ended Oct. 17. The weekly release of Wholesale Price Index (WPI) will henceforth cover only the Primary Articles and commodities in the broad group "Fuel, Power, Light & Lubricants". Monthly WPI covering all commodities will be released for the month of October 2009 next week on November 12.
A war of words erupted between New York University economist Nouriel Roubini and commodities bull Jim Rogers on the issue of whether bubbles are building in asset classes like emerging market equities and gold. Emerging market stocks or commodities have rallied too far, too fast and the global economy will experience an anemic recovery rather than the hoped-for V-shaped recovery, Roubini said. Investors worldwide are fueling huge bubbles that may spark another financial crisis by borrowing dollars in the mother of all carry trades, Roubini said. A forecast by billionaire investor Rogers that gold will double to at least US$2,000 an ounce is utter nonsense, Roubini said. There is no inflation or near-depression to drive gold prices that high, he said at the Inside Commodities Conference in New York. "Maybe it will reach US$1,100 or so but US$1,500 or US$2,000 is nonsense," Roubini said.
But, Rogers, the investor who predicted the start of the commodities rally in 1999, said that Roubini is wrong about the threat of bubbles in gold and emerging-market stocks. "What bubble?" Rogers said. "It’s clear Mr. Roubini hasn’t done his homework, yet again." Many commodities are still down from record highs and equity markets are not on the brink of collapse, Rogers, chairman of Singapore-based Rogers Holdings, countered Roubini. Gold rose to a record US$1,098.50 in New York on speculation that central banks and investors will buy more of the precious metal to hedge against a declining dollar. Gold, up 24% this year, has outperformed US stocks and bonds.
Separately, Arnab Das of Roubini Global Economics said that emerging markets are poised to extend their biggest rally in a decade as investors borrow dollars to buy stocks, bonds and currencies in the world’s fastest growing economies. Richard C. Kang, chief investment officer with Emerging Global Advisors LLC, said that Gold will climb to US$1,350 an ounce and oil will top US$100 a barrel in the next six months, driven by a "herd mentality" fueling an investment boom.
The Energy Outlook for Asia and the Pacific projects regional energy demand to grow 2.4% every year between 2005 and 2030, outpacing the world average of 1.5%.
The Asia and Pacific region must invest between US$7 trillion and US$9.7 trillion in the energy sector from 2005 to 2030 to meet the rapidly growing demand for energy in the region, according to a new report released by the Asian Development Bank (ADB).
The Energy Outlook for Asia and the Pacific projects regional energy demand to grow 2.4% every year between 2005 and 2030, outpacing the world average of 1.5%.
Nearly 80% of the region’s energy needs in 2030 would have to be met by fossil fuels – coal, oil and natural gas – and this will drive the growth in carbon dioxide emissions, the report warned. Net imports of oil are projected to increase substantially, nearly doubling the 2005 level by 2030.
The report is jointly published by ADB and the Asia-Pacific Economic Cooperation. It was launched together with another report, Energy Statistics in Asia andthe Pacific (1990-2006), during the Pacific Energy Summit. The two studies were undertaken by the Asia Pacific Energy Research Centre of The Institute of Energy Economics of Japan.
During the launch, ADB Vice-President Lawrence Greenwood called on all stakeholders to seek a low-carbon path to meet growing energy demand in a socially, economically and environmentally sustainable way.
"Cooperation among the economies is needed to enhance energy security and sustainable development in the region," Mr. Greenwood said. "This can be done through sharing policy information, facilitating energy trade and conducting joint energy projects."
The Energy Statistics report found that the region consumed 34% of the world's total primary energy supply in 2006. But the per capita electricity generation of 1,800 kWh in the region is still 37% below the world average of 2,870 kWh.
Access to modern forms of energy is a necessary condition for economic development and a high standard of living. In 2005, in theAsia and Pacific region, about 930 million people did not have access to electricity.
Xianbin Yao, ADB's Director General for Regional and Sustainable Development Department, said that there is a need to build a more robust energy database in the region.
These publications are the first attempt to consolidate and project energy demand and supply information in Asia and the Pacific by country, sub-region and the region as a whole. These will provide insights into the recent energy situation and a wealth of information for stakeholders inside and outside the region to chart their course of action in planning for energy investments,sustainable development, and poverty alleviation.
The two reports consolidate historical trends of energy demand and energy outlook up to 2030 in ADB's 48 regional members.
The Pacific Energy Summit, organized by National Bureau of Asian Research and co-sponsored by ADB, is a gathering of the world’s top leaders in science, government, and industry to advance regional cooperation on technologies, programs, and policies necessary in meeting resource requirements, sustaining economic growth, and reducing environmental impact throughout the Asia-Pacific.
The Government said it has decided that all profitable listed Central Public Sector Enterprises should meet the mandatory listing of 10% public ownership. In addition, all unlisted CPSEs having positive networth, no accumulated losses and having a net profit in the three preceding consecutive years should get listed on the stock exchanges. The disinvestment proceeds would be channelised into the National Investment Fund (NIF), the Government said in a statement. The corpus comprising deposits from April 2009 till March 2012 would be available in full for investment as capital expenditure in specific social sector schemes determined by Planning Commission and Department of Expenditure. The status quo ante of NIF will be restored from April 2012, it added. The President’s Address to the Joint Session of Parliament on 4th June and Finance Minister’s Budget Speech on 6th July had articulated the intention of the UPA Government to encourage people participation in the disinvestment programme. It had mentioned that CPSEs are the wealth of the nation, and part of this wealth should rest in the hands of the people while retaining at least 51% Government equity in our enterprises.
The decision, which was announced by Home Minister P Chidambaram after a meeting of the Cabinet Committee on Economic Affairs (CCEA), opens the doors for around 50 companies to get listed, prominent among them being BSNL, RITES and Ircon. Though, 18 PSUs are listed and do not comply with the mandatory 10% public float norm, about 10 such companies are profitable and will need to come out with a follow on issue. These include MMTC and NMDC, Neyveli Lignite, State Trading Corp. and National Fertilizers. The Government owns 98.38% in NMDC, 99.33% in MMTC and 91.02% in State Trading corp., according to filings to the Bombay Stock Exchange (BSE). Hindustan Copper is 99.59% government-owned, while Rashtriya Chemicals & Fertilizers (RCF) is owned 92.5% by the Government. The Government didn’t provide any timeframe or schedule of share sale. The Government's disinvestment plan may help it mobilise more resources and reduce its dependence on borrowings, economists said
Fear seems to gain more credence than greed these days. Volatility has escalated as traders and investors get cautious after a stupendous rally that began in early March. Corporate earnings and economic activity have show signs of improvement but there remains some apprehension about immediate prospects.
The sentiment will remain at the mercy of global cues and trend in fund flows. Stock-specific activity will continue depending on the news flow on corporate and economic data. Inflation and inflationary expectations coupled with concerns over overheated valuations and possible asset bubbles could keep a lid on the gains.
Central banks across the globe have at least started thinking in terms of when and how to withdraw the extraordinary stimulus measures without causing much upheavals. How they devise and execute their so-called "exit" strategies remain to be seen.
So, stick to basics as uncertainty and volatility are not going to go away in a jiffy. Don't buy into anything aggressively and don't forget to do your due diligence before picking up stocks. Though, there is no need to panic with the long term outlook positive, booking profits in the short term will enhance your portfolio.
Stocks could remain under pressure on Monday as the monthly jobs data in the US has come in worse than forecast. The October unemployment rate surprisingly climbed as high as 10.2% against average expectations of 9.9%. US firms shed 190,000 non-farm jobs versus prediction of 150,000.
The International Monetary Fund (IMF) said that it sold 200 tons of gold to the Reserve Bank of India (RBI) for US$6.8bn. Traders had expected China to be the leading contender. The sale was concluded at an average price of about US$1,045 an ounce over a two-week period in the latter half of October. "This transaction is an important step toward achieving the objectives of the IMF's limited gold sales program, which are to help put the fund's finances on a sound long-term footing and enable us to step up much-needed concessional lending to the poorest countries," the IMF's Managing Director, Dominique Strauss-Kahn, said in a statement. Traders said that the IMF news could add to recent gains in the precious metal.
India's foreign exchange reserves held at the central bank totaled US$285.5bn on Oct. 23, of which gold comprised more than US$10bn. The RBI paid on average about US$1,045 an ounce for the gold and the transaction would be paid in hard currency and not in IMF Special Drawing Rights.
The IMF declined to say whether other central banks have expressed interest in buying the remaining 203.3 tons of gold on tap for sale. Strauss-Kahn said if no other central banks came forward, the IMF would proceed as planned to sell the gold in the market. It was the first time since 2000 that the IMF sold gold to a central bank. Between December 1999 and April 2000 in separate transactions, the IMF sold a total of 12.9 million ounces of gold to member countries Brazil and Mexico.
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
6/11/2009 500078 CAMP ALLI PR LIC S 50000 70.33
6/11/2009 531682 CAT TECHNOL VINOD AMRATLAL NAAI B 580725 15.72
6/11/2009 531682 CAT TECHNOL VINOD AMRATLAL NAAI S 502993 15.80
6/11/2009 531337 CHAN GUIDE I KARAN SATPAL SINGH WALIA B 30000 94.10
6/11/2009 531337 CHAN GUIDE I B H LAKHANI S 34639 94.22
6/11/2009 531337 CHAN GUIDE I PREMLATA RAMESH SARAOGI S 40000 94.10
6/11/2009 533055 EDSERV SOFT HITESH SHASHIKANT JHAVERI B 86495 208.59
6/11/2009 533055 EDSERV SOFT HITESH SHASHIKANT JHAVERI S 92379 208.84
6/11/2009 511668 FACT ENTERP DAVAL KARTIK PANCHAL S 27995 22.45
6/11/2009 526689 FENOPLAST LT ANIL KUMAR TIWARI B 40000 39.40
6/11/2009 526689 FENOPLAST LT KETAN J KARANI S 40000 39.40
6/11/2009 531739 GENNEX LAB ROOPA SHRENIK SHAH B 90000 18.60
6/11/2009 531739 GENNEX LAB SILVER GOLDEN PROPERTY DEVELOP FIN INVESTMENT LTD. S 100000 18.60
6/11/2009 504336 INDTRADECO L ARYAMAN BROKING LTD. B 2500000 0.38
6/11/2009 504336 INDTRADECO L VARSHA INDL TOWNSHIP ORGANISERS PVT LTD. S 2500000 0.38
6/11/2009 532072 INTER DIGI PRITI JAYESH SHAH B 320000 3.11
6/11/2009 500380 JK LAKSHMI COPTHALL MAURITIUS INVESTMENT LIMITED B 471336 125.85
6/11/2009 500380 JK LAKSHMI JF EASTERN SMALLER COMPANIES FUND S 471336 125.85
6/11/2009 531413 KIRAN PRIN P VSL SECURITIES PVT LTD B 50000 7.24
6/11/2009 531413 KIRAN PRIN P RAJENDRA KUMAR CHOUDHRY HUF S 50097 7.24
6/11/2009 505299 KULK POW TOO SONIA GULATI B 18209 43.79
6/11/2009 500510 LARSEN & TOUBRO LTD. HSBC GLOBAL INVT FUNDS A/C HSBC GLOBAL INVT FUNDS MAURITIUS LTD B 4013534 1566.50
6/11/2009 500510 LARSEN & TOUBRO LTD. CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED S 4210000 1566.50
6/11/2009 508306 LEDO TEA COM SIKARIA SECURITIES LTD B 5000 50.68
6/11/2009 508306 LEDO TEA COM VEENA SHANTILAL GANDHI S 6731 48.65
6/11/2009 524709 NAGARJ AGRIC MINIX HOLDINGS PVT.LTD. S 75000 210.10
6/11/2009 502165 OCL INDIA L COPTHALL MAURITIUS INVESTMENT LIMITED B 630402 107.50
6/11/2009 502165 OCL INDIA L JF EASTERN SMALLER COMPANIES FUND S 630402 107.50
6/11/2009 531496 OMKAR OVERSE PRAFULBHAI ASHISHBHAI PATEL B 250000 55.99
6/11/2009 531496 OMKAR OVERSE RAJNIKANT RAMANBHAI JADAV B 50000 56.00
6/11/2009 531496 OMKAR OVERSE SANTOSH ABHAYRAJ SHUKLA S 40155 56.05
6/11/2009 531496 OMKAR OVERSE HIREN KIRIT GANDHI S 79000 53.50
6/11/2009 531496 OMKAR OVERSE DINESHKUMAR RAMCHANDRA PANDEY S 115000 56.05
6/11/2009 531496 OMKAR OVERSE SHASHIDEVI SUBHASH AGARWAL S 50000 56.00
6/11/2009 500338 PRISM CEMENT LTD. COPTHALL MAURITIUS INVESTMENT LIMITED B 1862177 38.65
6/11/2009 500338 PRISM CEMENT LTD. JF EASTERN SMALLER COMPANIES FUND S 1862177 38.65
6/11/2009 590077 RANKLIN SOLU UNIQUE COMMODITIES LIMITED B 30000 34.80
6/11/2009 590077 RANKLIN SOLU DEEPAK KUMAR VYAS B 27300 35.38
6/11/2009 590077 RANKLIN SOLU RAJEEV GUPTA S 30000 35.05
6/11/2009 531646 RFL INTERNAT NILESH KRUSHNA PALANDE S 31500 1.37
6/11/2009 531693 SHR GANE SPI HASHIM ABDUL RAZAK B 325000 2.20
6/11/2009 531693 SHR GANE SPI ZAHID ABDUL RAZAK B 325000 2.20
6/11/2009 531693 SHR GANE SPI NITIN MANOHAR PRADHAN S 1000000 2.20
6/11/2009 513472 SIMPLEX CAST YOGESH SHASHIKUMAR SAVADEKAR B 43997 86.45
6/11/2009 531638 SURAJ STAINL SURAJ IMPEX PVT LIMITED S 231725 83.76
6/11/2009 530595 TELECANOR CHERUKURI SIRISHA B 36000 26.60
6/11/2009 533121 THINKSOFT TRANSGLOBAL SECURITIES LTD. B 72518 213.66
6/11/2009 533121 THINKSOFT MARWADI SHARES AND FINANCE LTD. B 62171 211.35
6/11/2009 533121 THINKSOFT OPG SECURITIES P LTD B 223517 215.32
6/11/2009 533121 THINKSOFT TRANSGLOBAL SECURITIES LTD. S 73018 213.62
6/11/2009 533121 THINKSOFT MARWADI SHARES AND FINANCE LTD. S 62171 211.21
6/11/2009 533121 THINKSOFT OPG SECURITIES P LTD S 223517 215.36
6/11/2009 531668 VISION CORPO JAGDISH RAMNIKLAL SHETH S 150000 8.90
6/11/2009 531249 WELL PACK PA NAVNATH SAKHARAM GHONE S 28000 272.35
6/11/2009 532788 XL TEL ENE MORGAN STANLEY MAURITIUS COMPANY LIMITED S 180000 28.38
6/11/2009 522108 YUKEN INDIA JAYESH M PAREKH B 16282 92.30
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
06-NOV-2009,CAMLIN,Camlin Ltd.,AVENDUS PE INVESTMENT ADVISORS PRIVATE LIMITED,BUY,1200000,22.10,-
06-NOV-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,BUY,196189,67.31,-
06-NOV-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,3851200,51.63,-
06-NOV-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,7280239,19.81,-
06-NOV-2009,MANGLMCEM,Mangalam Cement Ltd,ADITYA MARKETING AND MFG LIMITED,BUY,201000,119.99,-
06-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,AANGI SHARES & SERVICES PVT. LTD,BUY,50792,213.45,-
06-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,BUY,84844,214.53,-
06-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,78353,211.32,-
06-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,BUY,116530,213.77,-
06-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,90357,212.85,-
06-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,VIJETA BROKING INDIA PRIVATE LIMITED,BUY,62770,215.71,-
06-NOV-2009,CAMLIN,Camlin Ltd.,COMGEST GROWTH PLC A/C COMGEST GROWTH INDIA,SELL,1200000,22.10,-
06-NOV-2009,EXCELINFO,Excel Infoways Limited,BALASO VITHAL SHINDE,SELL,122324,64.96,-
06-NOV-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,SELL,200125,67.38,-
06-NOV-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,3851200,51.61,-
06-NOV-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,7335424,19.81,-
06-NOV-2009,MANGLMCEM,Mangalam Cement Ltd,ECE INDUSTRIES LIMITED,SELL,200000,120.00,-
06-NOV-2009,POLARIS,Polaris Software Lab Ltd,ORBITECH LIMITED,SELL,1029844,168.56,-
06-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,AANGI SHARES & SERVICES PVT. LTD,SELL,792,217.00,-
06-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,SELL,84844,214.79,-
06-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,78353,211.84,-
06-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,SELL,116530,213.95,-
06-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,90357,213.12,-
06-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,VIJETA BROKING INDIA PRIVATE LIMITED,SELL,62770,215.93,-
06-NOV-2009,XLTELENE,XL Telecom & Energy Ltd,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,113161,29.41,-
06-NOV-2009,XLTELENE,XL Telecom & Energy Ltd,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,480000,28.38,-
The Indian stock market closed in green tracking the firm cues from the global markets. Heavy buying was witnessed during the trading session and the investors’ sentiments was boosted on the back of some favoring data like better than expected jobless claims data in US that recorded at 5,12,000 down 20,000 from the previous week and better than the expected 5,22,000. The continuing claims came in at 5.75 million, which was inline with the expectations and down from 5.82 million in the previous week. Moreover, the rally across the Asian markets after Australian Central bank increased its economic growth forecasts by more than tripled further boosted the sentiments. Moreover, the Union Cabinet’s approval of listing the state run firms on the stock exchanges, which have a track record of profits in the past three years, also supported the sentiments. The government decided that the proceeds from the equity divestment in State run firms can be utilized for capital expenditure on social sector programmes instead of routing it through the National Investment fund. The BSE Sensex closed above the 16,150 mark while Nifty just above 4,790 mark. From the sectoral front, the PSU index (up 3.91%), Realty index (up 2.81%) and Metal index (up 2.03%) attracted the investors’ confidence as most buying was witnessed from this basket.
After a gap up opening, the domestic market gain some further grounds but the market did not able to sustain the momentum an tumbled to bit to pare some of its gains by the mid session but later gained some strength tracking the firm opening of the European markets. From the global markets, US stock market closed higher on the back of strong quarterly report from Cisco and also better than expected jobless claims data. Cisco reported better than expected top and bottom line results. The maker of networking equipment has reported 19 per cent fall in its net income to $1.79 billion or 30 cents per share during the first quarter ended Oct 24 ’09. Besides, the latest initial jobless claims data gave support to the market to gain grounds.
The European Central Bank has kept its main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 1%, 1.75% and 0.25% respectively at its meeting held on November 5, 2009. The Bank of England also left its main rate at 0.5 percent. The Bank of England (BoE) decided to pump another 25 billion pounds ($41 billion) into its economy on Thursday, taking its quantitative easing (QE) to 200 billion pounds in total, but slowed the pace of the programme.
Among the Sensex pack 19 stocks ended in positive territory while 11 stocks in negative territory. The market breadth indicating the overall health of the market remained strong as 1,944 stocks closed in green while 780 stocks closed in red and 63 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 94.38 points or (0.59%) at 16,158.28 and NSE Nifty closed up by 30.60 points or (0.64%) at 4,796.15. The BSE Mid Caps closed higher by 138.92 points at 6,254.36 and the BSE Small Caps closed up by 157.09 points at 7,170.94. The BSE Sensex touched intraday high of 16,283.86 and intraday low of 16,075.19.
Losers from the BSE Sensex pack are Tata Power (3.84%), HUL (2.12%), Hero Honda (1.98%), ITC (1.53%), Tata Motors (1.06%) and Maruti Suzuki (1.04%).
Gainers from the BSE Sensex pack are JP Associates (4.76%), Tata Steel (3.08%), SBI (3.06%), Sterlite Inds (2.21%), L&T (2.17%), DLF (2.14%), HDFC (1.93%), Sun Pharma (1.78%) and M&M (1.03%).
On the global markets front, the Asian markets that opened before the Indian market, closed in green. Hang Seng, Seoul Composite, Jakarta Composite, Strait Times, Nikkei closed higher by 1.63%, 1.30, 1.18%, 1.10% and 0.74% at 21,829.72, 1,572.46, 2,395.16, 2,658.21 and 9,789 respectively.
European markets, which opened after the Indian market, are trading mixed. In London FTSE 100 is higher by 0.16% at 5,133.95 while in Paris the CAC 40 is lower by 0.15% at 3,703.20, in Frankfurt DAX index is trading down by 0.04% at 5,478.74.
BSE REALTY indexwas at 3,993.68 up by 109.18 points or by (2.81%) The main gainers were Phoenix Mill up by (9.73%) at Rs.178.75, Anant Raj In up by (9.18%) at Rs.134.35, Parsvnath up by (6.05%) at Rs.112.15, Housing Dev up by (5.36%) at Rs.359.9, Orbitco up by (5%) at Rs.266.9.
BSE METAL index was at 14,507.50 up by 289.25 points or by (2.03%) The main gainers were Nmdc Ltd up by (10%) at Rs.338.4, Jai Corp Lim up by (9.98%) at Rs.180.65, Welsp Guj Sr up by (4.75%) at Rs.276.6, Sesa Goa Ltd up by (4.73%) at Rs.312.1, Gujara Nre C up by (3.74%) at Rs.61.
BSE BANKEX index was at 9,690.49 up by 166.65 points or by (1.75%) The main gainers were Yes Bank up by (6.01%) at Rs.253.9, Kotak Bank up by (5.98%) at Rs.760.6, Indus Ind Bk up by (5.33%) at Rs.127.35, Indian Overs up by (4.45%) at Rs.109.15, Bank Of India up by (3.46%) at Rs.365.8.
BSE CG index was at 12,985.81 up by 216.46 points or by (1.7%) The main gainers were Reliance Industrial Infrastruc up by (13.97%) at Rs.947.2, Usha Martin up by (12.02%) at Rs.71.3, Gammon Indi up by (7.94%) at Rs.235.05, Suzlonenergy up by (6%) at Rs.66.25, Beml Ltd up by (4.25%) at Rs.1022.9.
BSE AUTO index was at 6,518.39 down by 4.12 points or by (0.06%) The main losers were Herohonda M down by (1.98%) at Rs.1529.9, Tata Motors down by (1.06%) at Rs.569.55, Marutisuzuki down by (1.04%) at Rs.1473.35, Bajaj Auto down by (0.61%) at Rs.1452.85.
BSE PSU index was at 8,794.80 up by 331.03 points or by (3.91%) The main gainers were M M T C Ltd. up by (20%) at Rs.36146.85, St Trad Corp up by (14.84%) at Rs.354, Dredg Corp I up by (12.18%) at Rs.507.85, Rashtriya Chemicals & Fertiliz up by (11.76%) at Rs.73.65, Hind.Copper up by (10%) at Rs.256.35.
BSE OIL&GAS index was at 9,629.82 up by 76.75 points or by (0.8%) The main gainers were Aban Offsho up by (2.83%) at Rs.1279.35, Hindustan Petroleum Corp. Ltd. up by (1.35%) at Rs.352.15, Ril Nat Res up by (1.13%) at Rs.71.45, Bharat Petroleum Corporation L up by (1.01%) at Rs.510.25, Reliance up by (0.87%) at Rs.1956.75.
BSE IT index was at 4,453.45 up by 12.55 points or by (0.28%) The main gainers were Mphasis Ltd up by (6.92%) at Rs.723.85, Financ Techn up by (6.22%) at Rs.1346.75, Oracle Fin up by (6.06%) at Rs.2185.65, Aptech Ltd up by (4.77%) at Rs.183.3, Niit Ltd up by (2.87%) at Rs.60.85.
Infosys closed lower by 0.24% at Rs. 2,217.80. The company announced that it has teamed up with Oracle through the ''''BPO Powered by Oracle program'''', and is launching a comprehensive managed services platform for multifunction HR through its Infosys Business Platforms offering.
Sun Pharmaceutical surged 1.78% to close at Rs. 1,404.70. The company announced that USFDA has granted approval for an Abbreviated New Drug Application (ANDA) of its subsidiary for generic Acular ®, Ketorolac Trome
Today's major news
Intel in talks with ITI for WiMAX joint venture: ITI’s stock ended the day 9.95% higher.
Punjab National Bank cuts retail loan rates; the stock ends 2.10% higher for the day.
Mahindra & Mahindra to launch motorcycle next year: the stock closed 1.03% up.
Fedders Lloyd secures an export order; the stock closed the session 4.94% higher.
Aurobindo Pharma gets USFDA approval, the stock end the day 1.20% higher
Click here for more stories
On Thursday, the major US indices rose sharply by over 2% each on the back of bigger-than-expected drop in the jobless claims reported by the government and improved productivity reported by retailers. While the European indices ended the day in green with marginal gains recovering its early trade losses. In today's trade, the European indices opened weak and were trading in volatile and range-bound territory with mixed performance, wherein FTSE 100 is trading at 5135 with marginal gains of 9 points or 0.19% at the time of writing this report. Today, the traders in the US will be waiting for the announcement of the most important data i.e. non-farm payroll and unemployment rate.
In today's trading session, all the major Asian indices managed to sustain the morning gains and closed in green with gains in the range of 0.28-1.63% Shanghai Composite rose the least whereas Hang Seng jumped the most. SGX Nifty opened strong but ended the day with marginal gains of 23 points.
The Sensex surged for the third consecutive day on the back of positive global cues, however couldn't sustain at highs. The Sensex opened strong with gains of 74 points on the back of strong Asian cues, however as expected the volatility continued to hail wherein it swung over 210 points in day’s trade. However, the market in the mid-session lost all the gains and made the low of 16075 and ended the day with marginal gains of over 94 points owing to weak European opening. The positive developments on the divestment of all unlisted non-loss making public sector unit (PSU)’s front, helped the market to surge, wherein the PSU index jumped the most with gains of close to 4%.
The Sensex opened higher, surged from that point to see the high of 16284 in the early trades. However it ended the volatile day much lower and ended the day at 16158, gaining 94 points or 0.59% for the day.
The market rallied strongly on the back of heavy buying in PSU stocks owing to the buzz on the divestment front and realty heavyweights. Nifty gained 31 points to end the day at 4796, slightly below the important technical level of 4800.
The market breadth was very positive, as out of 2,787 stocks traded on the BSE, 1,944 stocks advanced, whereas 780 stocks declined. Sixty-three stocks closed unchanged. The volumes rose across the board.
Sectoral & stock screening
Very much like yesterday all the indices closed in green except for BSE FMCG and BSE Auto, which fell by 0.95% and 0.06% respectively. BSE PSU advanced the most gaining 3.91% for the day, followed by BSE Realty that rose over 2.81%. All other indices ended the day higher in the range of 0.22% to 2.03%.
On stocks’ front, MMTC jumped the most and surged by 20.00%, followed by Rashtriya Chemicals and Fertilisers (RCF) that gained over 11.76%. Hindustan Copper and NMDC surged by 10% each. Among the losers, Idea Cellular fell the most-- by 5.51%, followed by Tata Power that slid 3.84%. Indiabulls Financials, PTC India, Ambuja Cement, Educomp Solutions and Hindustan Unilever declined by over 2% each.
On turnover front, Over 2.36 crore shares of Suzlon Energy changed hands on the BSE followed by IFCI (1.78 crore shares), Unitech (1.20 crore shares), Reliance Natural Resources (1.03 crore shares) and Ispat Industries (0.77 crore shares).
Though the activity in the global market will dictate, the fresh bearish position builds up in the nifty as well as the stock futures and options indicate market do not have the strength required to continue to maintain its growth momentum
The week started on an extremely negative note as the nifty corrected by 147.80 points to close at 4563.90 points. The sell-off was triggered by the news that 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. The correction was further exasperated by the bleak scenario in the European markets and US index futures. During this day huge short positions were created in the stock and Nifty November series. However positive comments by the Finance Minister Pranab Mukherjee, that there are no immediate plans to place curbs on capital inflows, besides strong global stocks indices enabled the domestic benchmark to come back strongly. The Nifty rose 146.90 points to close at 4710.80. The shorts that were created the previous day were aggressively un-wound. For e.g. Nifty November series it self witnessed unwinding of 23.47 lakh shares of short position open interest (OI) created the previous day. The trend was the same in the front-line stock futures as well. Then for the proceeding three days the market closed on a positive note. For the full week ended 6th November 2009 the nifty index rose 84.45 points to close at 4796.15. However the Nifty future closed at a discount of 6 points to the underlying. The global market weakness and the worry of unwinding of US $ carry trade and the consequent asset bubble burst and US$ appreciation continue to remain. Despite the rally the market does not signify convincing strength, as is evident from the future market activity during the past few days.
On Friday 6th November the Nifty closed 30.60 points higher at 4796.15. The OI trend in the Nifty and the stock futures remained directionless. As the week closed the nifty continued to shed OI signifying short covering. Besides the trend in the stock futures were also the same. The total OI for the Nifty November series further shed 8.65 lakh shares to 2.76 crore shares. Overall the market wide OI on Friday stood at 158.62 crore shares, thus gaining by just 7 lakh shares as compared to the previous trading day. As mentioned earlier the index future and the overall stock future witnessed un-winding of OI signifying continued short covering. For e.g. the index future shed 6 lakh shares in OI compared to the previous day whereas the stock futures shed 1.77 crore shares in OI. The stock option contributed the major addition in OI. (See table OI breakup).
In the Nifty option front the most active call options were the 4600 to 4900 strike calls and 4500 to 4700 strike puts. The 4600 and 4700 strike calls unwound 1.98 lakh shares and 2.89 lakh shares in OI signifying covering of calls bought earlier whereas 4800 and 4900 call strikes witnessed 6.1 lakh shares and 5.1 lakh shares addition of OI. The concurrent premium decline of these strikes indicates call wrote at these levels. Besides 4400 strikes put witnessed unwinding of 6.2 lakh shares in OI, whereas 4500, 4600 and 4700 strike puts witnessed addition of 2.1 lakh shares, 9.7 lakh shares and 8.5 lakh shares addition in OI respectively. The concurrent premium increase indicates puts bought at these strikes. Thus these indicate bearish signal. The OI in the 4800 and 4900 strikes call increased to 40.02 lakh shares and 41.27 lakh shares respectively. The OI in the 4600 and 4700 strikes puts increased to 58.90 lakh shares and 46.46 lakh shares respectively.
The market do not seem to have the strength required to continue to maintain its growth momentum as fresh bearish position builds up in the nifty as well as the stock futures and options. Going ahead the activity in the global market will be the key as the mood there is also gloomy.
Volatility has been the order of the day on the bourses over the past few days and it may remain so over the next two months or so as foreign institutional investors (FIIs) resort to year-end profit taking. On Wednesday, 4 November 2009, the National Stock Exchange's volatility index - India VIX which measures the market's expectation of volatility over the near term, jumped a massive 22.35%. India VIX is a volatility index based on S&P CNX Nifty index option prices.
Most institutional investors based out of US and the Europe follow calendar year as their accounting year. Profit taking by funds triggered correction in most global stocks recently. Closer home, the Sensex plunged 1,921.07 points or 11.08% to 15,404.94 on 3 November 2009 from a 17-month closing high of 17,326.01 on 17 October 2009. The market staged a comeback in the next three days with the Sensex jumping nearly 5%.
The key economic data due next week is industrial production data for September 2009 on Thursday, 12 November 2009. On the same day, the government will release for the first time headline inflation data on a monthly basis.
Moderation in core sector growth in September 2009 after signs of pick-up in industrial growth in the last few months seems to have again raised some concerns. The index of core sector industries which has a weightage of 26.7% in the index of industrial production (IIP) clocked 4% growth in September 2009, sharply lower than the 7.8% in the month before. Industrial production jumped a robust 10.4% in August 2009.
Meanwhile, the Commerce and Industry Ministry on Thursday, 5 November 2009, said it would henceforth release the wholesale price index (WPI) on monthly basis from 12 November 2009. On that day, the government will unveil WPI for October 2009. As per the new data collation system introduced by the government on 5 November 2009, the weekly WPI numbers cover only primary articles, including mainly food items, and commodities in the broad group â€˜fuel, power, light and lubricants.'
The new mechanism of segregating food inflation is expected to capture the price situation in a more realistic manner and narrow the wide variation, hitherto, between the WPI and the Consumer Price Index numbers. The consumer price index (CPI), which has a heavy weight of food items, rose an annual 11.64% in September 2009, lower than previous month's level.
Finance Minister Pranab Mukherjee said last week the government will maintain its fiscal stimulus due to uncertainty arising from the poor monsoon and the global outlook. The finance minister also said there are no immediate plans to place curbs on capital inflows. His comments send equities surging on Wednesday, 4 November 2009. The 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, last month, slapped a 2% tax on foreign investments into equities and fixed income instruments.
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. These so called US dollar carry trades have kept putting pressure on the dollar as investors short the currency to invest elsewhere.
The US Federal Reserve on Wednesday, 4 November 2009, promised again to keep interest rates exceptionally low for an extended period because it expects only a weak recovery. There has been a solid surge in inflows in emerging markets equity funds this year
The key benchmark indices extended for the third day in a row as the US dollar fell against a basket of major currencies. But intraday volatility was high. The BSE 30-share Sensex rose 94.36 points or 0.59%, off close to 120 points from the day's high and up close to 85 points from the day's low. Metal, banking and realty stocks edged higher. But FMCG and auto stocks fell. Index heavyweight Reliance Industries nudged higher in volatile trade. The market breadth was strong.
Intraday volatility was quite high. The market surged in early trade on firm Asian markets and overnight surge in US stocks triggered by positive economic data in the US. The market remained range bound in mid-morning trade. It pared gains in early afternoon trade. The market soon came off the lower level. Volatility ruled the roost as the Sensex tumbled to a fresh intraday low in afternoon trade. The market regained strength in mid-afternoon trade.
The dollar index, a gauge of the US unit's performance versus six majors, was down 0.2%. 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. These so called US dollar carry trades have kept putting pressure on the dollar as investors short the currency to invest elsewhere.
The US Federal Reserve on Wednesday, 4 November 2009, promised again to keep interest rates exceptionally low for an extended period because it expects only a weak recovery. There has been a solid surge in inflows in emerging markets equity funds this year.
Closer home, the Indian government on Thursday mandated more sales of shares by state-run firms and changed the rules on how it can use the proceeds, as it seeks to boost revenues and rein in a widening budget deficit.
The government said all profitable, listed state-run firms must have at least 10% of their shares in public hands, and unlisted firms that had a positive net worth, no accumulated losses and a net profit over the past three years should list.
The government said the funds from the listings would be spent on social schemes for three years. Currently, proceeds are put in a National Investment Fund and only its dividends are used for funding social security schemes. The government also said it was debating the need for changes in tax laws including on saving schemes, capital gains for non-residents and tax pacts with other nations, as part of reforms to boost revenues. The government has said it will maintain fiscal stimulus until the recovery is secure.
On Thursday, data showed food inflation remained firm at 13.39% for the 12 months to 24 October 2009. The government said it will release monthly wholesale price index (WPI) for October 2009 on 12 November 2009 and there will be no more weekly headline inflation data.
Chief statistician Pronab Sen said the government aims to start quarterly employment data on trial basis in one year. He said government's move to report wholesale price index (WPI) inflation data on a monthly instead of a weekly basis will remove a source of market volatility.
The Group of 20 finance ministers and central bankers start a meeting in Scotland on Friday seeking to firm up a plan to rebalance the world economy. Ahead of the meeting, British finance minister Alistair Darling said in an interview to a news agency that the G20 policymakers are agreed that it is too early to pull the plug on economic life-support packages as the global recovery is still fragile.
The top central banks have shown little inclination yet to choke off the extraordinary support given to economies shaken by global financial crisis but some have offered the first signs of changing tack. The Federal Reserve, European Central Bank (ECB) and Bank of England all left interest rates at record lows this week and the British central bank opted to pump yet more money into its economy.
ECB President Jean-Claude Trichet said on Thursday he expected the euro zone economy to recover at a gradual pace in 2010, after the central bank left rates at 1%, and signalled some of the bank's liquidity measures could soon be halted. The Bank of England (BoE) decided to pump another 25 billion pounds ($41 billion) into its economy on Thursday, taking its quantitative easing (QE) to 200 billion pounds in total, but slowed the pace of the programme. The BoE also left interest rates at a record low of 0.5% and said the prospect was for "a slow recovery in the level of economic activity".
Meanwhile, ministers and officials from the 21 Asia-Pacific countries are holding a meeting next week in Singapore to discuss ways to improve the ease of doing business in the region, remove trade barriers and explore new growth frameworks.
Most European shares rose on Friday ahead of a key US employment report, with banks and miners gaining. The key benchmark indices in Germany and UK were up by between 0.04% to 0.22%. But, France's CAC 40 fell 0.03%.
Asian stocks rose on Friday after Australia's central bank more than tripled its economic-growth forecast and reports showed US unemployment claims and worker productivity beat estimates. The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.28% to 1.63%.
China's Ministry of Commerce on Friday said it would protect its industry's interests and accused Washington of double-standards in denouncing new US anti-dumping duties imposed shortly before a visit by President Barack Obama. It also called for Washington's swift recognition of China as a market economy.
The United States on Thursday slapped preliminary anti-dumping duties ranging up to 99% on $2.63 billion in Chinese-made pipes used in the oil and gas industry, in the biggest US trade action against China. That comes on top of counter-vailing duties on the same product, announced in September 2009. The preliminary Commerce Department decision came a week before US President Barack Obama heads to Asia on a trip that includes stops in Shanghai and Beijing.
In retaliation against the US move, China's Ministry of Commerce today, 6 November 2009, launched an anti-dumping investigation into US sport-utility vehicles (SUVs) with engines of 2 liters and above. Beijing initiated the investigation after Chinese auto makers petitioned for the action, alleging unfair trade practices, the report said. The investigation will include sedans and SUVs.
Meanwhile, Japanese Prime Minister Yukio Hatoyama said on Friday he could not be optimistic about Japan's economic outlook. There is a chance the economy may worsen further, Hatoyama told an upper house budget committee meeting.
Japan's deputy prime minister Naoto Kan said on Friday the government will likely keep the budget for next fiscal year stimulative for Japan's economy. He said there is strong risk of Japan's economy experiencing a double-dip recession. His comments were in stark contrast to comments by Bank of Japan (BoJ) Deputy Governor Hirohide Yamaguchi that the chances of the economy experiencing a double dip are small. Yamaguchi said the economy continues to recover modestly.
US index futures reversed early losses. Trading in US index futures indicated Dow could gain 16 points at the opening bell on Friday, 6 November 2009.
US stocks rose sharply on Thursday, with the S&P 500 up four straight days and the Dow closing above 10,000, after a rise in business productivity and a drop in jobless claims boosted confidence in the economy, while strong results from Cisco bolstered tech stocks. The Dow Jones industrial average was up 203.82 points, or 2.08 % to end at 10,005.96. The Standard & Poor's 500 Index was up 20.13 points, or 1.92 %, at 1,066.63. The Nasdaq Composite Index was up 49.80 points, or 2.42 % at 2,105.32.
The US non-farm payrolls report due later today, 6 November 2009, may show 175,000 jobs cut in October 2009. While that would be an improvement on the 263,000 jobs lost in September 2009, the unemployment rate is tipped to rise from 9.8% to 9.9%, menacingly close to the psychologically key 10% level.
Closer home, the supply of paper by Indian firms appear limitless, raising concerns that additional share sales will suck liquidity from the secondary equity market. As per reports, Indian firms have garnered about $9 billion (Rs 32,400 crore at the current exchange rates) through sale of shares and convertible bonds to institutional buyers since April 2009. Indian companies are taking advantage of a surge in liquidity to recapitalize and fund capital expenditure after being starved of cash last year.
The BSE 30-share Sensex rose 94.36 points or 0.59% to 16158.28. The Sensex rose 219.96 points at the day's high of 16283.86 in mid-morning trade. The Sensex rose 11.29 points at the day's low of 16075.19 in afternoon trade.
The S&P CNX Nifty rose 30.60 points or 0.64% to 4796.15. Nifty November 2009 futures were at 4797, near spot closing of 4,796.15. Turnover in NSE's futures & options (F&O) segment was Rs 77,394.87 crore, sharply lower than Rs 96,498.50 crore on Thursday, 5 November 2009.
BSE clocked a turnover of Rs 5997 crore, higher than Rs 5972.13 crore on Thursday, 5 November 2009.
The market breadth, indicating the overall health of the market was strong. On BSE, 1934 shares advanced as compared with 782 that declined. A total of 62 shares remained unchanged.
From the 30 share Sensex pack, 19 stocks rose and rest fell.
From a low of 15,404.94 on 3 November 2009, the Sensex has gained 753.34 points or 4.89% in the last three trading sessions to current 16158.28. The Sensex is up 6510.97 points or 67.49% in calendar year 2009, as on 6 November 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7997.88 points or 98%, as on 6 November 2009.
FII outflow in November 2009 totaled Rs 19.50 crore (till 5 November 2009). FII had bought equities worth Rs 8303.80 crore in October 2009. FII inflow in the calendar year 2009 totaled Rs 68,421.60 crore (till 5 November 2009).
Coming back to today's trade, The BSE Mid-Cap index rose 2.27% and the BSE Small-cap index gained 2.24%. Both these indices outperformed the Sensex.
The BSE PSU index (up 3.91%), the BSE Realty index (up 2.81%), the BSE Metal index (up 2.03%), the BSE Bankex (up 1.75%), BSE Capital Goods index (up 1.7%), the BSE Consumer Durables index (up 1.56%), the BSE Oil & Gas index (up 0.8%), the BSE Healthcare index (up 0.79%), outperformed the Sensex.
The BSE FMCG index (down 0.95%), the BSE Auto index (down 0.06%), the BSE Teck index (up 0.22%), the BSE IT index (up 0.28%), the BSE Power index (up 0.54%), underperformed the Sensex.
Energy giant Reliance Industries rose 0.87% to Rs 1956.75. The stock hit a high of Rs 1973.95 and a low of Rs 1940. The Supreme Court on Thursday resumed its hearing on a gas dispute between the Ambani brothers after one of the judges on Wednesday withdrew from the Supreme Court hearing on gas dispute, citing potential conflict of interest. Reliance Industries' counsel Harish Salve recapitulated the arguments made by him in the past six days and asserted that the company had no choice but to follow the government's gas utilization policy.
RIL's price for the gas from the K-G basin discovered and operated by it was subject to government approval and it cannot be a private arrangement between the two brothers, the counsel told the bench now consisting of Chief Justice K G Balakrishnan and Justices B Sudershan Reddy and P Sathasivam.
The High Court ordered RIL to supply gas to Reliance Natural Resources (RNRL) at a price lower than that fixed by the government. Both Ambani brothers approached the Supreme Court, aggrieved by diverse parts of the judgment. The government also entered the fray, adding to the complexity.
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.
Oil exploration stocks rose as crude oil traded above $80 a barrel today and, poised for a weekly gain, on optimism fuel demand will increase amid improved prospects for an economic recovery in the US, the world's biggest energy consumer. Crude oil for December 2009 delivery rose as much as 47 cents, or 0.6%, to $80.09 a barrel on Asian electronic trading. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.
Cairn India rose 0.87%. The company on Thursday signed a pact with Reliance Industries for supply of crude oil. India's second biggest state-run oil exploration firm by revenue Oil India rose 0.93%. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) rose 0.44%.
Rate sensitive realty shares rose on bargain hunting. Unitech, Omaxe, DLF and Indiabulls Real Estate rose by between 1.55% to 3.57%.
Realty stocks had declined sharply recently after the RBI raised the provisioning requirements for loans to commercial real estate from 0.4% to 1% in its monetary policy review meet on 27 October 2009.
Metal stocks advanced as copper prices rose on the London Metal Exchange. Hindalco Industries, Hindustan Zinc and Sterlite Industries rose by between 0.44% to 2.21%.
National Aluminium Company surged 1.34%, after the company hiked the prices of aluminium products by Rs 1000 a tonne reflecting the recent uptrend in prices on the London Metal Exchange.
Steel stocks rose for the second straight day on reports major steel producers have posted strong sales volumes for the month of October 2009. Steel Authority of India (Sail) rose 1.31%. Sail has posted 28% growth in saleable steel volumes to 0.85 million tonnes in October 2009 over October 2008.
Tata Steel, the world's eighth largest steelmaker by output rose 3.08% after company said on Friday steel sales at its Indian operations rose 38% to 462,000 tonnes in October 2009 over October 2008.
But JSW Steel fell 1.78% after jumping 7.34% on Thursday. JSW steel's sales doubled to 0.4 million tonnes in October 2009 over October 2009.
Demand for steel remains strong auto, rural construction and infrastructure sectors. Also demand for construction grade steel has improved post monsoon season, and has resulted into higher sales. Another reason for the surge in sales in October 2009 was lower base effect, as last year demand dropped significantly owing to economic downturn. Most steel companies had cut production in October last year due to the global economic crisis and steep fall in demand.
Banking shares rose on gains in American depository receipts (ADRs). India's largest private sector bank by net profit ICICI Bank rose 0.48% as its ADR rose 1.66% on Thursday. 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 0.77% as its ADR rose 2.04% on Thursday.
India's largest bank by net profit State Bank of India (SBI) rose 3.06%. SBI announced after market hours today that the bank has revised downwards deposit rates by 25-50 bps for a few maturities effective from 9 November 2009. 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.
Among other PSU banks, Union Bank of India, Bank of India, Bank of Baroda, rose by between 1.5% to 3.46%.
Last week, the RBI did not relax mark-to-market rules for bank's debt holdings at a quarterly policy review on 27 October 2009. The market was been agog with talks over the past few days of the central bank hiking the ceiling on the portion of government securities that banks can park in held-to-maturity (HTM).
The central bank also decided to streamline provisioning requirement on non-performing assets. The RBI, asked banks to ensure by September 2010 that the total provisioning coverage against non-performing or bad loans aren't less than 70% of the outstanding amount.
FMCG stocks fell on profit taking. United Spirits, ITC, Hindustan Unilever, fell by between 1.53% to 2.12%.
Auto stocks also fell on profit taking. Low interest rates and attractive benefits offered by companies pushed up 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 fell 1.04%. The company's 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 truck marker by sales Tata Motors fell 1.06%. Its total sales grew 18% to 20,011 units last month against 17,014 units in the same period last year.
India's largest bike marker by sales Hero Honda Motors fell 1.98%. The company reported a marginal increase in October sales at 354,156 units as against 352,449 units in the same month last year
India's second largest bike marker by sales Bajaj Auto fell 0.61% The company 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 tractor maker by sales Mahindra & Mahindra rose 1.03%. The company's overall sales climbed 32% in October this year to 18,410 units against 13,935 units in the same month last year. Mahindra and Mahindra (M&M) reportedly plans to launch a motorcycle next year. The company is also looking at acquisitions in the electronic scooter space. The auto major had entered the two-wheeler market market by acquiring the assets of Pune-based scooter manufacturer Kinetic Motor in 2008.
IT stocks fell reversing early gains on a stronger rupee. India's largest software company by sales Tata Consultancy Services (TCS) fell 0.52%. The company recently secured a 150 million pounds software implementation contract for 15 years from Cardiff city council, UK.
India's second largest software company by sales Infosys fell 0.24% even as its ADR rose 1.05% on Thursday. Infosys said on Thursday its chairman's wife sold company shares worth $92 million for setting up a venture capital fund.
Sudha Murthy, wife of Infosys co-founder and chief mentor N.R. Narayana Murthy, sold 20 lakh shares, or about 22% of her total holding, on the Bombay Stock Exchange on Thursday, the company said in a filing. Last month, Narayana Murthy, who co-founded Infosys with six other software engineers in 1981 with $250, had sold a total of 800,000 shares worth $37 million to set up a venture capital fund which he plans to set up in India. The company said the Murthys have confirmed they did not plan to raise further capital for the fund.
But, India's third largest software company by sales Wipro rose 0.11% as its ADR rose 1.36% on Thursday. The company said on Thursday it had agreed to buy some personal care businesses of Yardley for about $45.5 million, adding to its consumer goods business. Wipro said it had signed an agreement with UK-based Lornamead group, which owns the Yardley brand, for the businesses in Asia, the Middle East, Australasia and some African markets.
The rupee strengthened to its highest in more than a week on Friday boosted by gains in regional shares, which could prompt foreign fund inflows into the local share market. The partially convertible rupee was at 46.75/76 per dollar stronger than its previous close of 47.0150/0250. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.
Construction shares rose on government's thrust on infrastructure. Hindustan Construction Company, Era Infra Engineering, Gammon India, Punj Lloyd, Jaiprakash Associates rose by between 2.22% to 7.94%.
India's largest engineering firm by sales Larsen & Toubro (L&T) rose 2.17% to Rs 1575.50. A large block deal was hit of 42.10 lakh shares at Rs 1566.30 on BSE at about 12:00 IST
Higher government spending on infrastructure sector in the Union Budget 2009-2010 to provide a stimulus to the economy, may result in increase order flow for construction. The government has set a target of spending $20 billion a year on road construction.
Shares of public sector firms rose as the government plans divestment of stakes in PSUs. State Trading Corporation, Hindustan Copper, Chennai Petroleum Corporation, Central Bank of India, Power Finance Corporation rose by between 1.59% to 14.84%.
Suzlon Energy clocked the highest volume of 2.36 crore shares on BSE. Cals Refineries (2.09 crore shares), IFCI (1.78 crore shares), Indiabulls Power (1.55 crore shares), Unitech (1.2 crore shares) were the other volume toppers in that order.
Larsen & Toubro clocked the highest turnover of Rs 711.23 crore on BSE. State Bank of India (Rs 187.44 crore), Housing Development & Infrastructure (Rs 178.09 crore), Suzlon Energy (Rs 156.80 crore) and Reliance Capital (Rs 152.06 crore) were the other turnover toppers in that order.