Monday, November 09, 2009
At 46.53/54 per dollar
Rupee strengthened to its highest in two weeks on Monday as the dollar slipped against major units and other regional currencies, but traders were watching the local sharemarket for cues on fund flows.
Rupee was at 46.53/54 per dollar, its strongest since 26 October 2009 and above its previous close of 46.81/82.
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
9/11/2009 524412 AAREY DRUGS RAMESH DHARSHI KORDIA B 25000 42.75
9/11/2009 524412 AAREY DRUGS NITA BANKESH BHAVSAR S 29143 43.61
9/11/2009 513335 AHMEDNAGAR F OLYMPIA BUILDERS PVT. LTD S 285000 59.82
9/11/2009 505506 AXON INFOTEC VIJAYKUMAR BANARSI JAYSWAL B 4887 13.19
9/11/2009 506285 BAYER CROP MERRILL LYNCH CAPITAL MARKETS ESPANA SA SV B 490000 423.00
9/11/2009 506285 BAYER CROP BIRLA SUN LIFE INSURANCE COMPANY LIMITED S 495213 423.02
9/11/2009 531932 C G IMPEX ROHIT SETHI B 87000 7.77
9/11/2009 531682 CAT TECHNOL VINOD AMRATLAL NAAI B 653488 16.81
9/11/2009 531682 CAT TECHNOL VINOD AMRATLAL NAAI S 604408 16.85
9/11/2009 531337 CHAN GUIDE I B H LAKHANI B 30024 98.16
9/11/2009 531337 CHAN GUIDE I ARUNKUMAR SHROFF AMIT B 30000 98.30
9/11/2009 531337 CHAN GUIDE I M/S ALTRA CLEAN OPERATIONS B 48500 99.61
9/11/2009 531337 CHAN GUIDE I B H LAKHANI S 53313 99.45
9/11/2009 531337 CHAN GUIDE I PREMLATA RAMESH SARAOGI S 80000 98.35
9/11/2009 504351 EMPOWER INDS JIGNESH CHANDRAKANT SHAH B 213000 28.30
9/11/2009 531439 GOLDSTON TEC PREM MOHANLAL PARIKH S 100000 27.00
9/11/2009 531439 GOLDSTON TEC KISHORBHAI BALUBHAI CHAUHAN S 100000 27.00
9/11/2009 517571 IMP POWERS SAMPADA CHEMICALS LTD S 43950 102.69
9/11/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD B 150000 3.31
9/11/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 586490 3.26
9/11/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD S 150000 3.29
9/11/2009 523467 JAI MATA GLA SHER SINGH S 100000 3.22
9/11/2009 511523 NIYAT INDUST VEENABEN PRAKASHBHAI SHAH B 315000 1.07
9/11/2009 511523 NIYAT INDUST NILAY P. SHAH B 315000 1.07
9/11/2009 511523 NIYAT INDUST LAIQUE AHMEDAQ KHAN S 625000 1.07
9/11/2009 531496 OMKAR OVERSE MADHUBEN PRAFULBHAI PATEL B 60000 55.75
9/11/2009 531496 OMKAR OVERSE TUSHAR RAMNIKBHAI PATEL B 40000 56.10
9/11/2009 531496 OMKAR OVERSE PRAKASH KUMAR DEVSHILAL SHETH B 41200 56.21
9/11/2009 531496 OMKAR OVERSE ANJANA RAMESHCHANDRA BIRLA B 35000 56.23
9/11/2009 531496 OMKAR OVERSE PRADIPBHAI RAJNIKANT RAITHATHA B 41000 56.10
9/11/2009 531496 OMKAR OVERSE RAJNIKANT RAMANBHAI JADAV S 30000 56.25
9/11/2009 531496 OMKAR OVERSE AMBIKA SHYAM SHUKLA S 35000 56.16
9/11/2009 531496 OMKAR OVERSE KRISHNADEVI OMKARMAL AGARWAL S 151000 56.15
9/11/2009 523483 PACIFIC INDU MANUJ DHOOT B 8500 170.04
9/11/2009 523483 PACIFIC INDU MANUJ DHOOT S 8500 164.03
9/11/2009 503100 PHOENIX MILL RELIANCE CAPITAL TRUSTEE CO LTD AC EQUITY OPPORTUNITIES FUND B 817100 170.00
9/11/2009 503100 PHOENIX MILL CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD S 1850000 170.02
9/11/2009 503873 PRIYA SPIN L PARDEEP AGGARWAL S 57824 13.52
9/11/2009 512048 SPLASH MEDIA SUVUDHA SECURITIES PVT LTD S 16130 352.00
9/11/2009 533121 THINKSOFT AMIT MANILAL GALA B 51691 223.63
9/11/2009 533121 THINKSOFT DINESH GORDHANBHAI PARMAR B 91722 219.02
9/11/2009 533121 THINKSOFT BHAKTISURI SHARES AND SERVICES B 50538 229.50
9/11/2009 533121 THINKSOFT OPG SECURITIES P LTD B 65975 224.19
9/11/2009 533121 THINKSOFT AMIT MANILAL GALA S 51691 223.47
9/11/2009 533121 THINKSOFT DINESH GORDHANBHAI PARMAR S 91722 226.90
9/11/2009 533121 THINKSOFT OPG SECURITIES P LTD S 65975 224.16
9/11/2009 531249 WELL PACK PA TALENT INFOWAY LIMITED B 25000 269.78
9/11/2009 522108 YUKEN INDIA HEMANT S SHETH B 15669 94.38
The benchmark index Sensex ended on a buoyant note led by banking, consumer durables, oil & gas, metal and realty stocks. The upmove was also supported by broader markets and frontliners. It opened positive with a gain of 32.51 points, at 16,190.79 on Monday following strong global cues. After few minutes of trading in green, the Index witnessed profit booking at higher levels and shed most of its gains. However the index regained its strength on account of heavy buying interest seen in funds and proceeded to trade higher to finally close on a cheerful note, touching a day`s high of 16,517.42.
BSE Midcap and Smallcap index rose 1.97% and 2.16% respectively.
European stocks rose for a third day, the longest stretch of gains in seven weeks, as a rally by banks overshadowed the highest U.S. unemployment rate in 26 years. The Dow Jones Stoxx 600 Index added 0.20% to 241.06, extending its first weekly gain in three weeks to 1.70%. UK`s benchmark index FTSE 100 rose 77.97 points, or 1.52%, to trade at 5,203.61. French benchmark index CAC 40 gained 52.22 points or 1.41% to trade at 3,759.51. Germany`s benchmark index DAX advanced 79.58 points or 1.45% to trade at 5,567.83. (4.25 p.m)
The Sensex ended the day with a gain of 340.44 points, or 2.11% at 16,498.72 after touching a high of 16,517.42 and a low of 16,147.21. The broad-based NSE Nifty gained 102.25 points, or 2.13% at 4,898.40 after hitting a high of 4,905.25 and a low of 4,789.90.
Major gainers in the 30-share index were State Bank Of India(5.19%), ICICI Bank (4.72%), HDFC Bank (4.06%), ITC (3.90%), Tata Power Company (3.78%), and Reliance Industries (3.46%).
On the other hand, Bharti Airtel (3.88%), Reliance Communications (2.19%), Hindustan Unilever (0.71%), Sterlite Industries (India) (0.45%), and Sun Pharmaceutical Industries (0.02%) were the major losers in the Sensex.
Overall market breadth was extremely positive. Out of the total 2,796 stocks traded at BSE, 1,993 advanced, 756 declined while 47 remained unchanged.
All sectoral indices settled positive. BSE Bankex climbed 4.80%, Consumer Durables climbed 2.44%, Oil & Gas went up 2.40%, Metal gained 2.38% and Realty gained 2.20%.
Nifty November 2009 futures were at 4,906.10, at a premium of 7.70 points as compared to spot closing of 4,898.40. Turnover in NSE's futures & options (F&O) segment was Rs 73,802.20 crore lower than Rs 77,394.87 crore on Friday, 6 November 2009.
Reliance Industries (RIL) November 2009 futures were at premium at 2032 compared to the spot closing of 2025.05.
Unitech November 2009 futures were near spot price at 89.30 compared to the spot closing of 89.15.
ICICI Bank November 2009 futures were at discount at 881.65 compared to the spot closing of 889.
In the cash market, the S&P CNX Nifty surged 102.25 points or 2.13% at 4,898.40.
Shanghai, Sensex, Seoul, Sydney extend rally while Hang Seng, Nikkei continues to follow
Stock market in Asian region closed firm on Monday, 9 November 2009, with the modest up move on Wall Street last Friday, economic hopes and some encouraging corporate news keeping investor sentiment fairly bullish. Stocks gained momentum on strengthening confidence of global economic recovery after the G20 meetings concluded that global stimulus efforts would remain in place until the economic recovery was assured. Still, the gains are limited in some markets with a section of investors appearing a bit concerned about the pace of economic recovery.
On Wall Street, stocks ended the week with modest gains. All three major indices added more than 3% in their kitty. It was mainly riding on earning report from Cisco Systems and better than expected non farm productivity report, that stocks managed a good end for the week.
On that day, the Dow ended higher by 17.5 points at 10,023.52. Nasdaq ended higher by 7.12 points at 2112.5. S&P 500 ended higher by 2.67 points at 1079.5. For the week, the Dow Jones Industrial Average ended higher by 310.69 points (3.2%) at 10,023.42. The Nasdaq Composite Index, ended higher by 67.33 points (3.3%) at 2,112.44. S&P 500 ended higher by 33.11 points (3.2%) at 1069.3.
In the commodity market, crude oil rose from a one-week low as Hurricane Ida entered the Gulf of Mexico, forcing BP and Chevron Corporation to cut output.
Crude oil for December delivery rose as much as $1.52, or 2%, to $78.95 a barrel in electronic trading on the New York Mercantile Exchange. It was at $78.46 at 9:18 a.m. in London.
Brent crude for December settlement rose as much as $1.50, or 2%, to $77.37 a barrel on the London-based ICE Futures Europe exchange. It was at $76.79 at 9:18 a.m. local time.
Gold climbed to a record in London and New York as a weaker dollar prompted investors to buy bullion as an alternative investment. Gold for immediate delivery rose as much as $13.33, or 1.2%, to $1,108.43 an ounce in London and traded at $1,106.60 by 9:29 a.m. local time. December gold futures climbed as much as 1.2% to $1,108.80 an ounce on the New York Mercantile Exchange’s Comex division and were last at $1,106.90.
In the currency market, the U.S. dollar and the Japanese yen edged down against their major counterparts as a rally in Asian and European stocks reduced demand for safe-haven currencies.
The Japanese yen drifted lower against the US dollar as Asia as a rally in Asian stocks prompted investors to buy higher-yielding currencies as it was trading at 89.8870 against greenback
The Hong Kong dollar was trading at HK$ 7.7500 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
In Sydney trade, the Australian dollar hit a two-week high on Monday, aided by record-high gold prices, strong demand from Japanese investors and data that indicated resilience in the local property market. The dollar closed locally at $US0.9250, up from $US0.9135 on Friday.
In Wellington trade, the New Zealand dollar rose after dairy co-operative Fonterra increased its forecast payout to farmers to $6.05 per kilogram of milk solids, from the $5.10 announced in September. The NZ dollar rose as high as US73.63c, its highest since October 29, on the news and finished its local session at US73.58c from US72.25c at 5pm on Friday.
The South Korean ended at 1,161 won against the greenback, up 7 won from Friday's close, as foreign investors scooped up Seoul stocks.
The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.3650, 0.5700 up from Friday’s close of NT$32.5090.
In the Asian equity market, most of the regional equities ended mostly higher as Moody's lifted its outlook on China and Hong Kong, helping to fuel advances in those markets.
In Japan, shares markets managed to hold gain line as investors stepped in for bottom fishing on upbeat earnings outlooks, while broader Topix fell below the line triggered by stronger yen and wariness about domestic political prospects. Shares of gold miners getting a boost after precious metal jumped to record high. Insurance companies shares rose on better than expected earning figures.
The Nikkei 225 Stock Average index closed at 9,808.99, gained 19.64 points, or 0.2% from its previous close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange slid 3.34 points, or 0.38% to 870.67.
On the economic front, the Ministry of Finance said Monday that Japan official reserve assets totaled $1.08 trillion by the end of October, up $4.17 billion from previous month. As of October 31, foreign currency reserves amounted to $1.01 trillion, while reserves with the International Monetary Fund stood at $4.37 billion. Gold reserves totaled $25.59 billion, while SDR’s were worth $21.17 billion.
In Mainland China, share market recouped morning losses to finish the session with benchmark Shanghai Composite endured gains for seventh day in row, as market participant stepped in for dip buying as Group of 20 governments agreed to maintain stimulus efforts until the economic recovery was assured. Power producers’ shares escalated after the Shanghai Securities News said the government might raise power price charged on consumer by up to 6%. Automakers were firmer after vehicle sales jumped. Energy and materials and resources stocks benefited from rising crude oil and metal prices on Monday.
The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, surged 11.55 points, or 0.36%, to 3,175.58, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, grew 0.37%, to 3,495.79.
In Hong Kong, the stock market surged with broad based gains across the sector on sign of investor’ improved confidence in the global economic recovery. Materials and resources and energy stocks outperformed on the back of gains in precious metal and oil prices and increased risk appetite. Banks and financials and properties gained on tracking firmer overseas markets with a persistent inflow of funds. Automakers were firmer after vehicle sales jumped.
At closing bell, the Hang Seng Index escalated 377.83 points, or 1.73%, to 22,207.55, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, advanced 301.28 points, or 2.31%, to 13,318.48.
In Australia, the share market posted broad based gains across the sector after strong opening inspired by Wall Street Friday and as recent optimistic assessment of the economy by the central bank and fairly good corporate results. Banks and financials outperformed, buoyed by takeover offer for AXA Asia Pacific and Commonwealth Bank September quarter trading update.
At the closing bell, the benchmark S&P/ASX200 index spurted 80.9 points, or 1.76%, to 4,674.9, while the broader All Ordinaries spurted 82.10 points or 1.78%, to 4,686.50.
On the economic front, the Australian Bureau of Statistics stated today that the number of loans for owner occupied housing in Australia was up a seasonally adjusted 5.1% to stand at 65,505 in September compared to the previous month. The total job advertisements in Australia were down a seasonally adjusted 1.7% on month in October, the Australia New Zealand Banking Group said today, coming in at 133,709 ads. On an annual basis, ads were down 42.3%.
In New Zealand, stock market ended the first trading day of the week in the green region. The share market inched up for the second day in a row Monday. One of the main movers of the benchmark NZX-50 during the early hours was Fletcher Building shares that lifted further above the two-month low of 786 reached on Thursday. The NZX50 ascended 0.15% or 4.90 points to 3165.06. The NZX 15 added 0.17% or 9.88 points to close at 5737.24.
In South Korea, stocks closed higher as investors snapped up steelmakers, builders and tech shares, following gains in U.S. markets. The benchmark Korea Composite Stock Price Index (KOSPI) advanced 4.33 points to 1,576.79.
In Singapore, stock market spurted with broad based gains across the sector on tracking strong cues from Wall Street Friday and positive other Asian bourses. The blue chip Straits Times Index was ended session at 2,696.38, gained 35.17 points or 1.32%.
In Taiwan, stock markets followed the regional trend. The benchmark Taiex share index extended its run with gains by adding 73.65 points or 1% in a day, closing at 7536.70.
In Philippines, equities closed slightly lower, as selling pressure was seen in the broad markets due to the cautiousness generated by the two explosions that rocked the Philippines capital Manila today. At the concluding bell, the benchmark index PSEi lost 0.53% or 15.76 points to 2,915.71, while the All Shares index tumbled 0.39% or 7.35 points to 1,832.11.
In India, the key benchmark indices spurted as the US dollar fell sharply against major rivals after finance ministers and central bankers from the Group of 20 leading economic powers pledged to keep massive stimulus measures in place until the global recovery strengthens. Closer home, hopes of a pick-up in the pace of economic reforms further bolstered bulls. The BSE 30-share Sensex was up 340.44 points or 2.11% to 16498.72. The S&P CNX Nifty jumped 102.25 points or 2.13% to 4898.40.
Elsewhere, Malaysia's Kula Lumpur Composite index finished slightly higher at 1267.75 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2406.43.
In other regional market, European shares jumped on Monday, with miners performing well and as investors also welcomed earnings and deal moves in the insurance sector. On a regional level, the U.K. FTSE 100 index rose 1.1% or 57.76 points to 5,200, the German DAX index climbed 1.4% or 76.61 points to 5,565 and the French CAC-40 index rose 1.35% or 49.91 points to 3,757.
Heavy buying across the sectoral indices led the Indian stock market to close the session with strong gains backed by the firm global markets as well as the contours of reforms unveiled by the Prime Minister Manmohan Singh yesterday. The domestic market though opened with decent gains tumbled in the mid session to pare all its initial gains. However, it gained the momentum soon and kept on marching forward till the final closing of the session. The BSE Sensex closed above the 16,490 mark while Nifty just above 4,890 mark. From the sectoral front, the Bankex index (up 4.80%), Consumer Durables index (up 2.44%), Oil & Gas index (up 2.40%), Metal ( up 2.38%) and Realty index (up 2.20%) attracted the investors’ confidence as most buying was witnessed from these basket. The investors’ sentiments were boosted on the back of expectations of acceleration in the pace of economic reforms. The Prime Minister, in his address at the conference of global CEOs and captains of domestic industry yesterday, said to chalk out the road map of country’s progress in various sectors. He said that the government would push through legislative changes that includes insurance sector and also said that there is need to develop long term debt markets, deepen corporate bond market as well as strengthen the insurance and pension sectors, improve futures markets for better price discovery and regulation and also speed up the sale of stakes in state run companies. Above all this, prime minister said that the growth in the next financial year was expected to be more than 7% assuming a normal monsoon.
After a gap up opening, the domestic market surged at the initial stage tracking the firm Asian markets but the market did not able to sustain the momentum and tumbled to pare all its gains but soon gained strength tracking the firm opening of the European markets to touch intraday high. From the global markets, On Friday, the US stock market closed higher marking its fifth straight session gain. The opening was modest and traders were closing watching the non-farm payroll data that recorded job losses of 190,000 in the month of October slightly higher than the expected 175,000. The unemployment rate climbed a 25-year high at 10.2% as against the expected 9.9%. Another economic data was the wholesale report that indicated inventories fell 0.9% in September. On the other hand, the European shares jumped tracking the outcome of G20 meeting where the Group of 20 pledged in order to maintain emergency support for their economies until recovery is assured.
Among the Sensex pack 25 stocks ended in positive territory while 5 stocks in negative territory. The market breadth indicating the overall health of the market remained strong as 1,993 stocks closed in green while 756 stocks closed in red and 47 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 340.44 points or (2.11%) at 16,498.72 and NSE Nifty closed up by 102.25 points or (2.13%) at 4,898.40. The BSE Mid Caps closed higher by 123 points at 6,377.36 and the BSE Small Caps closed up by 154.69 points at 7,325.63. The BSE Sensex touched intraday high of 16,517.42 and intraday low of 16,147.21.
Losers from the BSE Sensex pack are Bharti Airtel (3.88%), Reliance Communication (2.19%), HUL (0.71%), Sterlite Inds (0.45%) and Sun Pharma (0.02%).
Gainers from the BSE Sensex pack are SBI (5.19%), ICICI Bank (4.72%), HDFC bank (4.06%), ITC (3.90%), Tata Power (3.78%), Reliance Inds (3.46%), M&M (3.38%), Grasim Inds (3.04%) and Hindalco Inds (3.02%).
On the global markets front, the Asian markets that opened before the Indian market, closed in green. Hang Seng, Strait Times, Taiwan Weighted, Shanghai Composite, Seoul Composite and Nikkei closed higher by 1.73%, 1.32%, 0.99%, 0.36% and 0.28% at 22,207.55, 2,693.38, 7,536.70, 3,175.58 and 9,808.99 respectively.
European markets, which opened after the Indian market, are trading in positive. In London FTSE 100 is higher by 1.53% at 5,203.89 while in Paris the CAC 40 is up by 1.40% at 3,759.37 and in Frankfurt DAX index is trading higher by 1.42% at 5,566.13.
BSE REALTY index was at 4,081.54 up by 87.86 points or by (2.2%) The main gainers were Sobha Dev up by (17.81%) at Rs.242.45, Orbitco up by (11.17%) at Rs.296.7, Ansal Infras up by (3.89%) at Rs.68.05, Omaxe Ltd up by (3.59%) at Rs.102.3, Parsvnath up by (3.21%) at Rs.115.75.
BSE METAL index was at 14,852.90 up by 345.40 points or by (2.38%) The main gainers were Jai Corp Lim up by (19.98%) at Rs.216.75, Jsw Sl up by (6.93%) at Rs.812.95, Nmdc Ltd up by (6.81%) at Rs.361.45, Steel Author up by (4.76%) at Rs.173.7, Ispat Indust up by (3.05%) at Rs.20.3.
BSE BANKEX index was at 10,155.67 up by 465.18 points or by (4.8%) The main gainers were Indian Overs up by (8.8%) at Rs.118.75, Allahabad Bk up by (7.48%) at Rs.134.4, Canara Bank up by (7.14%) at Rs.381.35, Axis Bank up by (6.63%) at Rs.997.25, Bank Of India up by (5.88%) at Rs.387.3,
BSE FMCG index was at 2,825.02 up by 60.08 points or by (2.17%) The main gainers were Godrej Cons up by (3.98%) at Rs.289.85, I T C Ltd up by (3.9%) at Rs.258.25, Dabur India Ltd. up by (3.07%) at Rs.157.85, Unitd Spr up by (3.06%) at Rs.1106.4, Ruchi Soya up by (2.31%) at Rs.84.05.
BSE CD index was at 3,472.98 up by 82.81 points or by (2.44%) The main gainers were Blue Star L up by (3.32%) at Rs.348.85, Titan Ind. up by (2.99%) at Rs.1337.9, Rajesh Expot up by (2.89%) at Rs.81.75, Videocon Ind up by (0.91%) at Rs.215.1, Gitanjali Ge* up by (0.47%) at Rs.117.15,
BSE OIL&GAS index was at 9,861.12 up by 231.30 points or by (2.4%) The main gainers were Reliance up by (3.46%) at Rs.2024.55, Essar Oil Ltd. up by (3.41%) at Rs.136.65, Cairn Ind up by (2.53%) at Rs.279.8, Bharat Petroleum Corporation L up by (1.5%) at Rs.517.9, Ril Nat Res up by (0.98%) at Rs.72.15.
Tata Steel closed up by 1.93% at Rs. 509.35. The company through its subsidiary, Tata Steel Global Minerals Holdings has entered into Joint Venture Agreement on 6th November 2009 with New Millennium Capital Corp. ("NML") (TSX-V: NML) and LabMag Limited Partnership (through its General Partner) for development of the Direct Shipment Ore (DSO) Project in Canada.
Aurobindo Pharma Limited closed higher by 0.33% at Rs. 819.30. The company announced that it has received final approvals from the US Food & Drug Administration (USFDA) for 2 ANDAs namely Cefotaxime for Injection USP 500mg, 1g, 2g and Cefotaxime for Injection DSP 10g pharmacy bulk pack.
Larsen & Toubro (L&T) closed up by 1.51% at Rs. 1,599.55. The company has secured the BoP contract valued at Rs 1635.30 crore from Madhya Pradesh Power Generation Co. Ltd, (MPPGCL) for 2 x 600 MW MALWA Coal Fired Power Plant, The project was won against stiff competition from domestic BoP bidders.
The key benchmark indices spurted as the US dollar fell sharply against major rivals after finance ministers and central bankers from the Group of 20 leading economic powers pledged to keep massive stimulus measures in place until the global recovery strengthens. Closer home, hopes of a pick-up in the pace of economic reforms further bolstered bulls. The BSE 30-share Sensex was provisionally up 349.43 points or 2.16%, up close to 360 points from the day's low. Banking, FMCG, auto, metal and realty stocks jumped.
Energy major Reliance Industries (RIL) extended surged on reports the firm is close to announcing a major overseas acquisition. India's largest engineering and construction firm by sales Larsen & Toubro rose after it won fresh orders. The market breadth was strong.
A bout of volatility was witnessed earlier in the day. The market surged in early trade tracking higher Asian stocks. The market pared gains later. The market slipped into the red for a brief period in mid-morning trade before regaining strength. The market surged to fresh intraday high in early afternoon trade. The market extended gains later.
The Group of 20 finance ministers and central bankers pledged on Saturday, 7 November 2009, to prepare strategies to end emergency support for their economies, but to keep the aid flowing until recovery was assured. The world's biggest economies - the European Union, the United States and Japan - are either expected to or already have emerged from recession in the third quarter.
This has prompted a discussion on when to start cutting back on the trillions in public support pledged to cushion the worst economic downturn since World War Two to maintain credibility of fiscal policies with markets and consumers. Officials from the world's 20 biggest developed and emerging economies said at the end of talks in the small Scottish town of St. Andrews that while the economy has improved, recovery was still uneven and depended on policy support.
The US dollar which has been at a receiving end in the past one year extended losses on Monday, 9 November 2009, on speculation the US Federal Reserve will be slow in raising borrowing costs. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, fell 0.9% to 75.158. The International Monetary Fund (IMF) added to dollar's woes by commenting that although the dollar has "moved closer to medium-run equilibrium," it continues to trade "on the strong side."
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 Federal Reserve could remove some of the extraordinary support it has extended to the US economy once the recovery looks solid and monthly job growth has returned, a top US central bank official said. In an interview posted on the the Financial Times' website on Sunday, St. Louis Federal Reserve Bank President James Bullard said he would not favor tightening monetary policy before recovery was well-established. The Fed at the end of a two-day regular policy meeting on 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. But a strong rebound in the dollar, if any, may result in unwinding of positions by traders/institutions in emerging market equities. The dollar had witnessed an intermittent recovery recently after world equities corrected. The dollar tends to move in tandem with swings in risk appetite, rising when economic numbers are bad or when stocks are down.
Closer home, Prime Minister Manmohan Singh said on Sunday, 8 November 2009, that the government would push through legislative changes, including in the insurance sector which foreign players are eyeing. Singh also said his government would take steps in the 2010/2011 fiscal year to wind down economic stimulus measures for Asia's third largest economy. He said there is a need to develop long-term debt markets, deepen corporate bond markets, strengthen the insurance and pensions sectors, improve futures markets for better price discovery and regulation. He also said the government would accelerate the sale of stakes in state-run companies.
The government, last week, 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 plans to introduce in parliament by December 2009 bills proposing the raising of foreign stake limits in insurers to 49% from the present 26% and opening up the pension sector to private and foreign firms. It will also propose a law to cut its holding in top lender State Bank of India to 51%
The prime minister said growth in the next fiscal year, assuming a normal monsoon season, was expected to be more than 7% compared with a 6.5% forecast for the 2009/2010 fiscal year. The government has a medium-term target of 9% growth per annum, needed to help reduce widespread poverty. Singh said the Indian economy grew 6.7% in 2008/2009 with the help of an economic stimulus package.
The timing of the withdrawal of stimulus steps for India's economy will be decided when it becomes clear the economy is recovering, but there will be no fresh stimulus, Finance Minister Pranab Mukherjee said on Sunday.
Last month, while announcing the monetary policy the Reserve Bank of India signalled an interest rate hike was imminent, citing inflationary pressures. It also started tightening some bank credit.
European shares rose on Monday after the Group of 20 pledged to keep the aid flowing until the recovery was assured, with banks and commodities the major gainers. The key benchmark indices in France, Germany and UK were up by between 1.33% to 1.46%.
Asian stocks climbed on Monday after modest gains on Wall Street Friday, 7 November 2009. The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.28% to 1.73%.
Moody's Investors Service raised the outlook on China's A1 rating to positive from stable on Monday, praising its economic performance in the past year during the global financial crisis. The agency said the country's strong credit fundamentals would resume its improving trend as the economy emerged from the effects of the global recession.
In a separate release, Moody's also said it was lifting the credit outlook on Hong Kong's Aa2 government bonds to positive from stable. Moody's said while Hong Kong has a separate credit rating from mainland China, it deserved a review because of increasing financial and economic ties with the fast-growing mainland economy. The boost in outlook comes even as Hong Kong has projected government deficits for the next two years.
Trading in US index futures indicated Dow could gain 80 points at the opening bell on Monday, 9 November 2009.
US stocks rose in a choppy trading session on Friday, lifted by several broker upgrades that offset disappointing data showing the unemployment rate rose to its highest in more than 26 years. The Dow Jones industrial average gained 17.46 points, or 0.17%, to end at 10,023.42. The Standard & Poor's 500 Index rose 2.67 points, or 0.25 %, to 1,069.30. The Nasdaq Composite Index added 7.12 points, or 0.34 % to close at 2,112.44.
The economic data came in worse than expected. The US Labour Department said employers cut 1,90,000 jobs in October 2009 and the unemployment rate jumped to 10.2%, its highest level in more than 26 years. In other data, wholesale inventories fell 0.9% in September 2009 and consumer borrowing fell by $14.8 billion in September.
APEC countries including the United States, Japan and China are expected to pledge this week to keep up their stimulus policies and push for a global trade deal in 2010 to spur a lasting economic recovery. Leaders from the grouping will also try to provide some momentum for global talks on climate change next month in Copenhagen. The Asia Pacific Economic Cooperation (APEC) forum has started annual meetings of leaders in Singapore which culminate in a leaders summit on 14-15 November 2009.
Rajat Nag, managing director general of the Asian Development Bank on Monday said it is premature for Asian central banks to begin exiting from their extraordinarily loose monetary policies given the fragility of economic recovery. Nag said the US dollar will remain a key reserve currency but that other currencies will also gain prominence over the medium and longer term.
As per provisional figures, the BSE 30-share Sensex was up 349.43 points or 2.16% to 16507.71. The Sensex rose 359.14 points at the day's high of 16517.42 in late trade. The Sensex fell 11.07 points at the day's low of 16147.21 in early afternoon trade.
The S&P CNX Nifty jumped 106.10 points or 2.21% to 4902.25 as per provisional figures.
BSE clocked a turnover of Rs 4981 crore, sharply lower than Rs 6019.18 crore on Friday, 6 November 2009.
The market breadth, indicating the overall health of the market was strong. On BSE, 1950 shares advanced as compared with 757 that declined. A total of 61 shares remained unchanged.
From the 30 share Sensex pack, 26 stocks rose and rest fell.
The BSE Mid-Cap index rose 2.06% and the BSE Small-cap index gained 2.23%.
Energy major Reliance Industries (RIL) rose 3.44% to Rs 2024 on reports the firm is close to announcing a major overseas acquisition. The likely target is a part of the assets owned by troubled petrochemical major LyondellBasell, which is undergoing reorganisation under the protection of a US court, reports suggest.
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 engineering and construction firm by sales Larsen & Toubro rose 1.67% after it won orders worth Rs 1635 crore.
Rate sensitive realty shares reversed early losses on bargain hunting. Sobha Developers, Unitech, Omaxe, DLF and Indiabulls Real Estate rose by between 0.36% to 20%.
Realty stocks have bounced back from lower level after a recent steep slide triggered by the RBI 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. The latest RBI move will result in increase in borrowing costs for realty firms which depend heavily on borrowing. In view of large increase in credit to the commercial real estate sector over the last one year and the extent of restructured advances in this sector, it would be prudent to build cushion against likely non-performing assets (NPAs), the central bank said in its quarterly policy review.
FMCG stocks rose on bargain hunting. United Spirits, ITC, Dabur India, Tata Tea, Britannia Industries rose by between 1.44% to 3.8%.
India's largest FMCG maker by sales Hindustan Unilever fell 0.50% after a leading foreign broker downgraded the stock to 'underweight' from 'equal-weight'.
Metal stocks rose on a strong domestic demand . Hindalco Industries, Hindustan Zinc and Sterlite Industries rose by between 1.69% to 3.02%.
National Aluminium Company rose 0.53%, The company recently 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 third straight day on reports major steel producers have posted strong sales volumes for the month of October 2009. Steel Authority of India (Sail) rose 4.76%. 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 1.93% after jumping 3.08% on Friday, 6 November 2009. The company said on Friday 6 November 2009 steel sales at its Indian operations rose 38% to 462,000 tonnes in October 2009 over October 2008.
JSW Steel rose 6.93%. 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.
Usha Martin advanced 1.89%, after the company said its board will meet on 12 November 2009 to consider raising funds through issue of securities.
Banking shares rose on hopes of financial sector reforms. India's largest private sector bank by net profit ICICI Bank rose 4.72% even as its ADR fell 0.19% on Friday 6 November 2009. 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 4.06% as its ADR rose 1.21% on Friday.
India's largest bank by net profit State Bank of India (SBI) rose 5.19%. State Bank of India said on Monday it had entered into an agreement with T. Rowe Price to sell a 6.5% holding each in UTI Asset Management Company and UTI Trustee Company. State Bank currently holds 25% in each of the companies and after the sale its holding would be reduced to 18.5%, it said in a statement.
SBI announced after market hours on Friday 6 November 2009 it has revised downwards interest rates on deposits by 25-50 basis points 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.
Punjab National Bank rose 2.42% after bank said on Monday it will sell 6.5% stake in each in UTI Asset Management and UTI Trustee Co to T. Rowe Price. The stake sale in the asset management company will fetch the state-run lender Rs 163 crore.
Bank of Baroda rose 3.07% after bank said on Monday it signed a definitive agreement to sell 6.5% stake each in UTI Asset Management Co and UTI Trustee Co to T. Rowe Price. The bank's shareholding in both these companies will fall to 18.5% after the divestment, Bank of Baroda said in a statement to the stock exchange.
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 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.
Auto stocks reversed early losses. Low interest rates and attractive benefits offered by companies pushed up sales of the industry in October 2009.
India's largest small car marker by sales Maruti Suzuki India rose 0.82%. 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 rose 1.95%. Its total sales grew 18% to 20,011 units last month against 17,014 units in the same period last year.
India's largest tractor maker by sales Mahindra & Mahindra rose 3.38%. 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.
India's largest bike marker by sales Hero Honda Motors rose 1.18%. 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 rose 1.21% 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.
Sundaram Brake Linings rose 1.94% after the company said it will invest about Rs 21.5 crore to raise friction materials production capacity by 3,000 tonnes to 23,000 metric tonnes.
Geometric surged 5.26%, after one of the promoter group companies hiked its stake in the firm.
IOL Netcom rose 1.26% after the company's board approved raising up to Rs 1250 crore.
Sonata Software gained 2.10%, after a wholly owned subsidiary of the company secured an order for an undisclosed amount.
Headlines for the day
Auto ancillary industry margins up 14.7% - Business Standard
MRPL to raise Rs5,000 crore by 2011 - Business Standard
Emami to foray into cement biz - Business Standard
ONGC may be allowed to sell C-series field gas at $4.75 - Business Line
Per-employee profits in IT Companies up - Business Line
Events for the day
Major corporate action:
Ex-date for interim dividend of Gabriel and Shriram Transport finance company
Ex-date for dividend of HCL Technologies, Grauer & Weil India
The major European indices surged for the third consecutive day on Friday, however marginally on the back of buying in the banking stocks. The European shares closed 0.2% higher after a choppy and highly volatile session of trade.
With heavy buying coming in, Dow managed to reclaim the 10000 level on Friday. Wherein the major indices rose marginally in the range of 0.17% and 0.34% each despite the announcement of the unemployment data where the unemployment rate spiked to 10.2%, its highest level since 1983, which is much worse than expected as employers continue to trim jobs despite other signs of growth.
Following cues the US and European market, all the major Asian markets were trading in the positive zone with marginal gains in the range of 0.15%-1.31% each. Even SGX Nifty opened strong, while at the time of writing this report it was trading 48 points higher to its previous close.
With marginally green signal coming from the global front, Sensex is expected to open marginally higher, trade in the range-bound territory and trmain highly volatile in the days trade.
Among the local indices, the Nifty could test the 4800- 4850 range on the up side, while on the down side it could find support at 4725 and 4700. While the Sensex is likely to get support at 15600 and may face resistance at 16400.
Among the Indian ADRs trading on the US bourses, Wipro, Dr Reddy, HDFC Bank and VSNL closed in green, marginally higher by 0.35%-1.21% each. While remaining ADR’s closed marginally lower with losses in the range of 0.19%-3.76% each. And among all ADRs, HDFC Bank rose the most, while the MTNL declined the most.
In the commodity space, Crude oil prices fell marginally, with the Nymex light crude oil for December series declining by $2.19 to close at $77.43 a barrel.
In the metals space, the Comex Gold for December series touched $1100. It continued to surge and rose by $6.70 to finally settle at $1096.00 a troy ounce, while Comex Silver for December series fell marginally by $0.04 to settle at $17.38 a troy ounce.
Daily trend of FII/MF investment in equities
On November 06, 2009, FIIs were the net buyers of the Indian Stocks in the tune of 267.60 crore (with the gross purchase of 2035.50 crore and gross sales of Rs1767.90 crore).
While the Domestic mutual funds mutual funds, on November 05, 2009, were also net buyer of the stocks in the tune of Rs34.30 crore (with gross purchase of Rs635.50 crore and gross sales of Rs601.20 crore).
Today domestic markets are likely to open positive as majority of Asian markets have also opened in green. The fifth straight gain in US markets despite disappointing non-farm payrolls data has raised hopes of firmness across global markets. The positive comments last week from Central Bank of Australia about the country’s phenomenal growth prospects will weigh more on the investors confidence for a couple of weeks. Domestic markets are likely to trade range bound with positive bias during the day.
On Friday, 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. 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.
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.
On Friday, the US stock market closed higher marking its fifth straight session gain. The opening was modest and traders were closing watching the non-farm payroll data that recorded job losses of 190,000 in the month of October slightly higher than the expected 175,000. The unemployment rate climbed a 25-year high at 10.2% as against the expected 9.9%. Another economic data was the wholesale report that indicated inventories fell 0.9% in September. There was lack of charm in the market and stocks spent most of its time in a choppy session. Industrial sector managed to lead the day’s gains on the back of analyst upgrades for General Electric. Financials were the laggard of the day, which ended with a loss of 0.5%. Despite positive earnings report from AIG, its shares witnessed immense selling pressure. US light crude oil futures for December delivery closed with a loss of 2.9 per cent at $77.35 per barrel, on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) ended with gain of 17.46 points at 10,023.42. NASDAQ index surged 7.12 points to 2,112.44 and the S&P 500 (SPX) closed higher by 2.67 points at 1,069.30.
The Indian ADRs ended mixed on Friday. In the IT pack, Infosys was down 1.04%, Satyam was down 1.13%, while Wipro was up 0.95% and Patni was up 0.19%. In the telecom space, Tata Comm was up 0.39%, while MTNL was down 3.76%. In the banking space, ICICI Bank was down 0.19%, while HDFC Bank was up 1.21%. In the other sectors, Tata Motors was down 0.49%, Sterlite was up 0.18% and Dr Reddys was up 0.35%.
The FIIs on Friday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 2,035.50 Crore and gross debt purchased stood at Rs 1,059.40 Crore, while the gross equity sold stood at Rs 1,767.90 Crore and gross debt sold stood at Rs 314.90 Crore. Therefore, the net investment of equity and debt reported were Rs 267.60 Crore and Rs 744.50 Crore respectively.
On Friday, the partially convertible rupee ended at 46.81/82 per dollar, 0.42% stronger than previous closing at 47.01/02 per dollar. The local currency gained strength on the back of phenomenal surge in local stock markets.
On BSE, total number of shares traded were 42.29 Crore and total turnover stood at Rs 6,019.18 Crore. On NSE, total number of shares traded were 87.89 Crore and total turnover was Rs 16,857.41 Crore.
Top traded volumes on NSE Nifty – Suzlon Energy with total volume traded 77625285 shares, followed by Unitech with 45704656, Jaiprakash Asso with 16921007, Idea Cellular with 13794569 and DLF with 11350626 shares.
On NSE Future and Options, total number of contracts traded in index futures was 712632 with a total turnover of Rs 16,575.91 Crore. Along with this total number of contracts traded in stock futures were 594679 with a total turnover of Rs 19,259.90 crore. Total numbers of contracts for index options were 1645646 with a total turnover of Rs 39,631.55 Crore and total numbers of contracts for stock options were 60470 and notional turnover was Rs 1,928.51 Crore.
Today, Nifty would have a support at 4,819 and resistance at 4,864 and BSE Sensex has support at 16,198 and resistance at 16,332.
Reliance Industries is looking to acquire a part of the assets owned by LyondellBasell. (ET)
SBI has cut interest rates by 25-50bps on deposits up to five years duration. (BL)
BSNL has joined the ongoing mobile tariff war by announcing a slew of initiatives including a scheme based per second billing. (BL)
SAIL plans to build a 10mn metric tonne steel mill in expectation of beating ArcelorMittal for the rights to control the nation's biggest iron ore reserves at Chiria. (DNA)
Workers at Rico Auto Industries ended their about 50-day strike following an agreement with the management on reinstatement of some employees
Tata Steel says October sales rose 38% yoy. (DNA)
Patni Computer plans to spend US$200-400mn in acquiring an IT company that is into Enterprise Application Integration space and specializing in the insurance industry. (BL)
Mahindra & Mahindra is to set up an automobile plant at Cheyyar, about 100 km from Chennai. (BL)
ONGC may be allowed to sell gas from its marginal C-series field at the current market determined price of $4.75/mBtu. (BL)
BEML says it has received an Rs1.9bn order for supplying waste excavating bucket for Northern Coalfields. (BL)
Tata Power says it would raise up to US$300mn through FCCBs. (BL)
SBI has extended its special home loan scheme at 8% interest rate by over four months to March 31, 2010. (TOI)
Tata Motors to shut down manufacturing operations at its Pune’s commercial vehicle unit for three days. (BS)
NTPC plans to add 25,000MW to its capacity during the twelve five year plan. (BS)
Emami is diversifying into cement business and will invest Rs17.5bn to set up production units in the next three years. (FE)
IDBI Bank is planning to launch a follow-on public offer of shares in January. (DNA)
Jet Airways, Kingfisher raise fares on higher ATF prices. (FE)
MRPL plans to raise around Rs50bn by 2011 for setting up a polypropylene plant and to install a Single Buoy Mooring (SBM) at the port. (BS)
Sical Logistics receives LOA from the New Mangalore Port Trust for setting up an iron ore handling facility at the deep draft multi purpose berth on BOT basis at New Mangalore Port. (BS)
Workers at Rico Auto ended their about 50-day strike. (ET)
Jubilant Organosys plans to invest Rs2.5bn this fiscal. (BS)
Spice Group eyes takeovers for insurance and Mutual Fund foray. (BS)
Power Finance Corporation has decided to lend Rs500bn, over two-third of its total asset base, to fund various proposed power projects in the country. (BS)
IDBI Bank plans to open its first foreign branch in Dubai by the end of next month. (ET)
Dhanalakshmi Bank forays into merchant banking. (BS)
T Rowe to pay US$135mn for 26% in UTI AMC. (ET)
Foreign exchange reserves fell by US$1.1bn to US$284bn, for the week ended October 30. (BL)
Prime Minister says stimulus measures announced in the last fiscal to combat the economic slowdown would be wound down next year following recent signs of an upturn in the economy. (Mint)
IRDA has constituted a working group to examine the current status of annuity products and to come out with recommendations to strengthen the same. (BL)
Government staff pension funds to hike equity investments by this fiscal. (BL)
Government will award the first ultra mega road project in two months, says minister for Road Transport and Highways. (DNA)
Government may take spectrum refarming route for 3G. (FE)
Anyone who thinks there is safety in numbers hasn’t looked at the stock market pages.
Today we expect a flat to slightly higher start. Asian markets are mostly in the green. US stocks managed to overcome a grim jobs report. Volatility will persist. Immediate support is placed at around 4700. Below that support may kick in at 4640-4650. Resistance is expected around 4850-4900. Overall, near-term trading range is seen between 4500-5000.
The UPA is making renewed noises about disinvestment, financial sector and fiscal reforms, but whether it has the courage to execute them is questionable.
The quarterly numbers haven’t inspired as much confidence as one would have expected them to. Investment led growth is yet to materialise. Credit growth remains subdued. Inflation has started inching higher. Interest rates have bottomed out.
The bulls may have escaped a big scare but the danger is still lurking. The threat of a fresh correction still looms given the uncertainty over the shape of recovery. A measured ‘exit’ from the emergency stimulus measures is likely over the next few months. The market could again get withdrawal symptoms when the ‘exit’ begins.
FIIs were net buyers in the cash segment on Friday at Rs5.87bn on a provisional basis. The local funds were net buyers of Rs2.37bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs14.72bn. On Thursday, the foreign funds were net buyers of Rs2.67bn in the cash segment. FIIs' net investments in Indian stocks this year is above $14bn. Mutual Funds were net buyers in the cash segment at Rs343mn on Thursday.
US stocks ended with modest gains on Friday after a volatile session, as most market players chose to overlook a government report showing the unemployment rate jumping to a 26-year high. Analyst upgrades of General Electric Co. (GE), Macy’s and Amazon.com helped spur optimism that the world's largest economy is recovering.
The Dow Jones Industrial Average added 17 points, or 0.2%, to close at 10,023.43. The S&P 500 gained 3 points or 0.3%, to end at 1,069.30 and the Nasdaq Composite index rose 7 points, or 0.3%, to finish at 2,112.44.
US stocks had gained on Thursday, with the Dow reclaiming 10,000 after a series of better-than-expected economic reports. But trading was very choppy on Friday, with stocks slumping at the open and then fluctuating for most of the session, before closing higher.
All three major US benchmarks finished higher for the week, recovering most of what was lost in a two-week selloff. For the week, the Dow was up 3.2%, while the Nasdaq rose 3.3% and the S&P 500 added 3.2%.
Though the Dow has closed above 10,000 several times this fall, it has not finished a full week of trading above that level since the period ending Oct. 3, 2009.
US stocks, as represented by the broad S&P 500 index, had lost 5.6% through the week ended Nov. 30. Prior to that selloff, the S&P 500 had rallied 63% off the March bottom.
US companies cut 190,000 jobs from their payrolls in October, after cutting 219,000 in the previous month, according to a Labor Department report. That was worse than the 175,000 economists. The unemployment rate, generated by a separate survey, rose to a 26-year high of 10.2% from 9.8% in September. Economists thought the rate would rise to 9.9%.
While the unemployment rate jump was surprising, the number of non-farm payrolls cut suggest that the pace of layoffs is slowing. Also, the number of non-farm jobs lost in August and September was revised down. American companies cut 91,000 fewer jobs in August and September than originally reported.
Dow component GE surged 6.2% after analysts at both Bernstein and Oppenheimer upgraded the stock to "outperform," according to reports. The GE-owned business television network CNBC reported that its parent is near a deal to sell its 80% stake in NBC Universal to Comcast. Comcast shares were up 2.8%.
Amazon.com climbed after Bernstein upgraded it to "outperform" from "market perform," and also lifted its 12-month target price on the stock.
AIG reported its second straight quarterly profit after seven quarters of losses. Results were better than expected, but the company's main insurance businesses posted weaker revenue, sending shares tumbling by almost 10% Friday. AIG stock had rallied on Thursday ahead of the results.
Starbucks posted weaker quarterly results that beat expectations in a report released late on Thursday. The coffee retailer also boosted its outlook for 2010 profit, after having cut costs and shuttered hundreds of stores in the last year. Shares gained 7.2%.
Fannie Mae reported an almost US$19 billion quarterly loss on bad loans. The biggest US mortgage lender also said that it would need more help from the Treasury. Shares fell 7.1%.
The dollar fell against the euro on speculation that the Federal Reserve will keep borrowing costs near zero into next year after the US unemployment rate exceeded 10 percent for the first time since 1983. The dollar fell versus the yen.
US light crude oil for December delivery fell US$2.19 to US$77.43 a barrel on the New York Mercantile Exchange, a decline of more than 3%.
COMEX gold for December delivery climbed US$6.40 to settle at US$1,095.70 an ounce after hitting an all-time high of US$1101.90 during the session.
Treasury prices rose, lowering the yield on the 10-year note to 3.51% from 3.52% on Thursday.
European shares finished the week on an upbeat note, overcoming weak US jobs data to close slightly higher. The pan-European Dow Jones Stoxx 600 index rose 0.2% to close at 241.06. On the week, the Stoxx 600 added 1.7%. The index recovered after temporarily losing ground early in the afternoon.
The UK's FTSE 100 index rose 0.3% to settle at 5,142.72, while the German DAX index finished nearly flat at 5,488.25. The French CAC-40 index posted a virtually flat finish, slipping 1.44 points to close at 3,707.29.
After a solid bounce back on Wednesday, the Indian markets managed to extend gains to second straight trading session. The upswing was seen despite weak cues from the Asian and the European markets. The BSE Sensex regained the 16,000 mark led by the Metals, Realty and the Power stock. Even the Mid-Cap and the Small-Cap stocks were in demand. Technically, the 4,720 levels which acted as a strong resistance for the Nifty in the past failed to act as a resistance.
In the US, The Federal Reserve on Wednesday 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 American central bank reiterated its long-standing stance to keep interest rates exceptionally low for an extended period because it expects only a weak recovery.
The BSE Sensex gained 151 points at 16,063 after touching a high of 16,092 and a low of 15,564. The index opened at 16,926 against the previous close of 16,912. The NSE Nifty advanced 54 points to shut shop at 4,765.
In Asia, the Nikkei in Japan was down 1.3%, while Australia's S&P/ASX ended lower by 0.7% at 4,508. Shanghai SE Composite gained 0.5% and Hang Seng index in Hong Kong fell 0.6%.
In Europe, stocks were in the negative terrain. The FTSE in the UK was down 0.7%, The DAX in Germany was down 0.5% and the CAC 40 index in France was down 0.6%.
Coming back to India, among the BSE sectoral indices, the Metal index was the top gainer, adding 3%, followed by the Realty index that was down 2.5% and the BSE Power index was down 2.5%.
The BSE Mid-Cap index gained 2% and the BSE Small-Cap index was up 2%.
Among the 30-components of Sensex, 23 stocks ended in the red and 7 ended in the positive terrain. Reliance Infra, RCom, Hindalco, Bharti and Tata Steel were among the major gainers.
On the other hand, among the major losers were SBI, ITC, ACC, Infosys and TCS.
Outside the frontline indices, the big gainers in the broader market were Spicetele, IFCI, RCF, Hind Copper and Mundra Port. On the other hand, losers included India Cement, Container Corp, Madras Cement and Power Fin.
Shares of Suzlon surged for the first time in 11 days. After sliding over 34% in the past 10 days, shares of Suzlon shot up by over 13% to end at Rs62.5 on the back bargain hunting witnessed at lower levels.
According to a release on the Bombay stock exchange, Suzlon, the constructor of large wind parks has pledged 1.79% equity shares with Indiabulls Financial Services Ltd.
The stock opened at Rs55.5 and made an intra-day high of Rs63 and a low of Rs55. Total traded volumes stood at 20.9mn shares.
The stock hit 52-week high of Rs145.85 on June 5, 2009 and 52-week low of Rs33.05 on March 12, 2009.
Shares of Maytas Infra were locked at 5% upper circuit at Rs149.45 after the company secured the Pune-Sholapur road contract worth Rs7.9bn from IL&FS Transportation Networks Limited (ITNL). ITNL was awarded the work of 4 laning of Pune-Sholapur section of NH-9 from km. 144.40 to km. 249.00 (104.60 kms) in the state of Maharashtra on a DBFOT (Design, Build, Finance, Operate & Transfer) basis by National Highways Authority of India (NHAI). This project is to be completed in a period of 20 month.
Shares of IFCI surged by over 14% to Rs49.95 after media reports stated that the government has hired a consultant to advise it on future of the company. The consultant will advise the government on its role in IFCI.
Reports also stated that IFCI could be merged with another state-owned financial institution
The stock opened at Rs44 and made an intra-day high of Rs50 and a low of Rs43.5. Total traded volumes stood at 20.4mn shares.
Shares of Aban Offshore erased early losses and ended higher by 4% to Rs1244. The stock slipped sharply from day’s high after media reports stated that the company’s US$200mn QIP may be delayed as the promoters are not willing to dilute their stake at the current market price.
The company needs to pay US$410mn debt by December 2009. Reports also added that the promoters are also weighing other option to raise fund, would also consider selling rigs.
Gvk Power & Infrastructure announced that the Board of directors approved the acquisition of 40.6mn shares being 12% of paid up equity share capital of Bangalore International Airport Limited (BIAL) at a total cost of Rs.4.84bn from Flughafen Zuerich AG through GVK Airport Developers Pvt. Ltd.
The stock ended lower by 2% to Rs47.25, it opened at Rs48 and made an intra-day high of Rs48.8 and a low of Rs45.4. Total traded volumes stood at 5.4mn shares.
Shares of RCF shot up by over 12% to Rs65.9 after reports stated that the company plans to foray in to cement distribution. The company is aggressively negotiating with seven cement manufacturers to enhance the portfolio of its dealers, the company’s Chairman and MD, Mr U. S. Jha was quoted as saying.
RCF posted a net profit of Rs561.2mn for the quarter ended September 30, 2009 as compared to Rs843.7mn for the quarter ended September 30, 2008. Total Income has decreased from Rs26.25bn for the quarter ended September 30, 2008 to Rs18.03bn for the quarter ended September 30, 2009.
The market may extend last three days gains on positive Asia. Hopes of a pick-up in the pace of economic reforms may also support market.
The long-stalled reforms to its financial sector gained momentum on Sunday after Prime Minister Manmohan Singh said he would push through legislative changes, including the insurance sector which foreign players are eyeing he told the World Economic Forum in Delhi. Singh also said his government would take steps in the 2010/2011 fiscal year to wind down economic stimulus measures for Asia's third largest economy. He said there is a need to develop long-term debt markets, deepen corporate bond markets, strengthen the insurance and pensions sectors, improve futures markets for better price discovery and regulation. He also said the government would accelerate the sale of stakes in state-run companies.
The prime minister said growth in the next fiscal year, assuming a normal monsoon season, was expected to be more than 7.0 % compared with a 6.5 % forecast for the 2009/2010 fiscal year. The government has a medium-term target of 9 % growth per annum, needed to help reduce widespread poverty.Singh said the Indian economy grew 6.7 %t in 2008/2009 with the help of an economic stimulus package.
The timing of the withdrawal of stimulus steps for India's economy will be decided when it becomes clear the economy is recovering, but there will be no fresh stimulus, Finance Minister Pranab Mukherjee said on Sunday.
Last month, while announcing the monetary policy the Reserve Bank of India signalled an interest rate hike was imminent, citing inflationary pressures. It also started tightening some bank credit.
Meanwhile, energy major Reliance Industries (RIL) will be in action on reports firm is close to announcing a major overseas acquisition. The likely target is a part of the assets owned by troubled petrochemical major LyondellBasell, which is undergoing reorganisation under the protection of a US court report said.
State Bank of India may see action as bank said on Monday it had entered into an agreement with T. Rowe Price to sell a 6.5 % holding each in UTI Asset Management Company and UTI Trustee Company.State Bank currently holds 25 % in each of the companies and after the sale its holding would be reduced to 18.5 % it said in a statement.
SBI announced after market hours on Friday 6 November 2009 that the bank has revised downwards deposit rates by 25-50 bps for a few maturities effective from 9 November 2009.
Asian stocks climbed on Monday led by financial companies after a takeover bid in Australia's insurance industry. The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.01% to 1.35%.
U.S. stocks barely budged in a choppy trading session on Friday, lifted by several broker upgrades that offset disappointing data showing the unemployment rate rose to its highest in more than 26 years. The Dow Jones industrial average gained 2.04 points, or 0.02 % to 10,008.00. The Standard & Poor's 500 Index .SPX added 0.78 of a point, or 0.07 % to 1,067.41. The Nasdaq Composite Index rose 2.28 points, or 0.11 %, to 2,107.60.
The economic data came in worse than expected. The labour department said employers cut 1,90,000 jobs in October 2009 and the unemployment rate jumped to 10.2% its highest level in more than 26 years in October. In other data, wholesale inventories fell 0.9% in September 2009 and consumer borrowing fell by $ 14.8 billion in September.
Group of 20 finance ministers and central bankers pledged on Saturday 7 November 2009 to prepare strategies to end emergency support for their economies, but to keep the aid flowing until recovery was assured.
Back home, the key benchmark indices extended for the third day in a row on Friday 6 November 2009 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% to 16158.28 on that day.
As per provisional data on NSE, foreign funds bought shares worth Rs 587.02 crore and domestic funds bought shares worth Rs 236.62 crore on Friday.
We recommend a sell in the stock of Tata Power Company from a short-term perspective. It is evident from the charts of the stock that its intermediate-term uptrend that commenced in March low of Rs 602 was arrested at Rs 1,487 in late October. The stock has a significant long-term resistance in the band between Rs 1,450 and Rs 1,500 level. Triggered by the negative divergence in the weekly relative strength index and moving average convergence and divergence indicator the stock reversed its direction. Since late October, it has been on a short-term downtrend. On October 30, the counter tumbled 4 per cent penetrating its intermediate-term up trendline. Moreover, it declined 4 per cent with good volume on November 6, reinforcing the downtrend. The stock is trading well below its 21- and 50-day moving averages. The daily momentum indicator has entered the bearish zone. Our short-term outlook on the stock is bearish. We anticipate its decline to continue until it hits our price target of Rs 1,145. Traders with a short-term perception can sell the stock while maintaining stop-loss at Rs 1335.