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Wednesday, November 11, 2009
Bulls make a comeback; Nifty closes above 5k
The bulls made a comeback today (November 11) at the bourses. The Bombay Stock Exchange benchmark 30-share index, Sensex leaped by 409 points today on the back of aggressive buying on the part of funds in blue-chip stocks, particularly software exporters. The index also got support from positive global cues reflecting signs of recovery in global economic growth.
While the pevious session of Sensex witnessed losses, the benchmark 30-share index rebounded today, to settle the day higher by 409.04 points at 16,849.60, a level previously observed on October 23. Likewise, the National Stock Exchange index Nifty jumped by 122.25 points to regain the 5,000-point level.
The Sensex ended the day with a gain of 409.04 points, or 2.49% at 16,849.60 after touching a high of 16,887.80 and a low of 16,405.19. The broad-based NSE Nifty climbed 122.25 points, or 2.50% at 5,003.95 after hitting a high of 5,016.70 and a low of 4,870.05.
All shares in the Sensex settled with gains. Major were Sterlite Industries (India) (6.50%), Jaiprakash Associates (6.27%), Reliance Energy (5.31%), Tata Motors (4.68%), Tata Steel (4.28%), and Infosys Technologies (4.08%).
Overall market breadth was positive. Out of the total 2,817 stocks traded at BSE, 1,726 advanced, 1,004 declined while 87 remained unchanged.
All sectoral indices settled positive. BSE Metal went up 4.27%, IT went up 3.94%, TECk climbed 3.36%, Consumer Durables went up 2.37% and Capital Goods rose 2.36%.
Market soars on firm global stocks
The key benchmark indices soared tracking firm global stocks after China reported continued strength in industrial production growth, keeping alive hopes of a recovery in the global economy. The market resumed its upmove after taking a pause on Tuesday, 10 November 2009, after a solid surge in the preceding four trading session. Equities shrugged off Cyclone Phyan which is expected to bring heavy rains to Mumbai, the commercial capital. Latest reported suggest that the cyclone has bypassed Mumbai at 14:00 IST.
The S&P CNX Nifty breached the psychological 5,000 mark in late trade. The Nifty had last closed above the 5,000 level on 21 October 2009.
The BSE 30-share Sensex jumped 409.04 points or 2.49%. Metal, auto, realty, capital goods and IT stocks rose. Index heavyweight Reliance Industries surged in late trade. The market breadth was strong.
The market moved between positive and negative zone in early trade. It surged in mid-morning trade. The market extended gains later.
As per provisional data, foreign funds today, 11 November 2009, bought equities worth a net Rs 861.84 crore. Domestic fund bought stocks worth a net Rs 90.52 crore
The market sentiment has been boosted by Prime Minister Manmohan Singh's announcement on Sunday, 8 November 2009, that financial reforms, such as building up a domestic bond market and expanding foreign investment in sectors like insurance, would be pushed forward.
A cyclone alert has been sounded across north Maharashtra and south Gujarat, besides coastal areas, by the Meteorological Department (IMD), in the wake of a deep depression over the Arabian Sea. The cyclonic storm, referred by the IMD as Phyan, was likely to intensify further and move towards south Gujarat and north Maharashtra coast, between Alibagh and Valsad, by late evening on Wednesday, warned the IMD.
Authorities have urged the residents of low-lying areas in Mumbai to vacate their houses and move to safer locations.Schools across Mumbai have been shut and students have been asked to go back home, in view of the impending cyclone. The Brihanmumbai Municipal Corporation has asked colleges to shut early. Government offices were shut at 14:00 IST. The Met office has advised fishermen not to venture out to sea in Kerala,Karnataka,Goa,Maharashtra and Gujarat.
As per reports, the government plans to introduce two key bills in parliament by December 2009. It plans to introduce 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.
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.
On the macro front, trade Secretary Rahul Khullar said on Wednesday that exports fell 11.4% to $12.5 billion in October 2009 over October 2008. Exports between April and October were at $90.4 billion, down 26.5% from the year ago period, he added.
The government today, 11 November 2009, said indirect tax receipts fell 21.6% to Rs 1,27,000 crore in April to October 2009. Excise duty receipts, levied at factory gates, were down 18.8% to Rs 52566 crore in the first seven months, while customs collection declined 31.8% to Rs 45412 crore. Service tax collection fell 5.4% to Rs 28926 crore
The government will unveil industrial production data for September 2009 on Thursday, 12 November 2009. 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 ofindustrial 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.
The Reserve Bank of India may withdraw some monetary stimulus if inflation rises towards the end of 2009, C. Rangarajan, chairman of the Prime Minister's economic advisory council, said on Wednesday. The fiscal deficit needed to be reduced by 1 to 1.5 percentage points in the next fiscal year, he said.
Inflationary pressures in India were higher than those in developed countries, but tightening policy too early could weaken recovery and attract more capital inflows which would complicate policymaking further, Reserve Bank of India Deputy Governor Shyamala Gopinath said on Tuesday. She said India faces a dilemma of needing to contain rising inflation while trying to support growth and managing foreign capital inflows.
Rising capital inflows into India are not a concern now and authorities are monitoring the situation, Finance Secretary Ashok Chawla said on Wednesday. Chawla said India's economy was unlikely to reach growth rates of 8-9% until exports revived. Earlier this month, the trade minister had said exports may start growing in annual terms from the March 2010 quarter.
The government may exempt petroleum products and exportable goods from a proposed goods and services tax (GST), a draft report said on Tuesday, as it tries to speed up reforms to ease the tax burden on firms. The government had set a deadline of April 2010 for introducing GST on a wide ranging products and services, but the finance minister said recently it could be delayed by a few months.
The proposed GST, which is to replace existing central and state levies such as excise duty, service tax and value-added tax, could help lower the overall tax burden of the industry. The discussion paper said petroleum products such as crude, motor spirit and diesel, along with alcoholic beverages would be exempted from GST but would continue to attract sales tax and other duties levied at present. Exports and special economic zones would be exempted from the new tax but imports would be taxed, it said.
Both the central government and states would have two separate GST structures, and small firms with turnover of up to Rs 10 lakh would be exempted, it added.
The government will focus on driving domestic demand until key developed economies recover and will not exit fiscal stimulus measures until necessary, Finance Minister Pranab Mukherjee said on Tuesday.
Mukherjee repeated his pledge for massive investments in the agriculture sector and infrastructure, and acknowledged that it would be a challenge for India to compensate for the loss in exports through domestic demand. The finance minister said he was hopeful of economic growth of more than 7% in the fiscal year ending March, 2011.
Europe shares gained on Wednesday, with France's Credit Agricole among banks gaining after reporting results, and with sentiment lifted by upbeat Chinese macro data. The key benchmark indices in France, Germany and UK were up by between 1.13% to 1.34%.
Most Asian stocks rose after upbeat Chinese economic data. The key benchmark indices in Hong Kong, South Korea, Taiwan and Singapore rose by between 0.79% to 1.61%. But the Shanghai Composite fell 0.11%
China's industrial production surged 16.1% in October 2009 from a year earlier after record loan disbursals by banks so far this year. The industrial production growth exceeded market expectations. Retail sales climbed 16.2%.
The growth in urban fixed-asset investments in the first 10 months of this year slowed to 33.1%, easing from the 33.4% growth in the first nine months of 2009. The consumer price index fell 0.5% from a year-earlier and the producer price index shrank 5.8%, with each dropping more than economists had estimated but still showing an increase from data in the previous month.
Exports, a key engine for China's economic growth and a major source of employment for its people, dropped at a higher-than-expected 13.8%, though the contraction was an improvement over the 15.2% decline in September 2009. China's imports during the month dropped at a significantly higher pace of 6.4% from a year ago.
New loans issued by Chinese financial institutions dropped in October 2009 to their lowest monthly level this year, suggesting mainland Chinese authorities were scaling back a key source of stimulus for the economy. However, China's key broad measure of money supply, M2, rose 29.42% at the end of October 2009 from a year earlier, in line with expectations.
Japan's Nikkei stock average was flat as the yen climbed, offsetting a surprisingly large jump in domestic machinery orders for September 2009 and a forecast for a rise in the fourth quarter.
Trading in US index futures indicated Dow could gain 61 points at the opening bell on Wednesday, 11 November 2009.
After Monday's spectacular rally, the US markets ended Tuesday session flat. Trading was light and choppy. Health-care, utilities and materials were the best-performing sector. The Dow was up 20.03 points, or 0.2%, to 10,246.97, its highest close since October 3, 2008. The S&P 500 index slipped 0.07 points, or less than 0.1%, to 1,093.01. The Nasdaq Composite Index fell 2.98 points, or 0.1%, to 2,151.08.
High unemployment and reluctant consumers will likely make an incipient US economic recovery weak and erratic, top Federal Reserve officials said in a string of speeches on Tuesday. That means interest rates, currently at historic lows close to zero, should remain near that floor for the foreseeable future, the policymakers said.
World Bank President Robert Zoellick said on Wednesday he was comfortable about growth prospects for the world this year but recommended governments to not remove stimulus measures in 2010. The world needed a cooperative approach to exit from easy fiscal and monetary policies and the timing for Asian central banks would depend on markets he said.
Asia-Pacific ministers warned on Wednesday that the global economic crisis was far from over and a current upturn was a respite rather than recovery. Ministers from the Asia-Pacific Economic Cooperation forum (APEC) have gathered in Singapore for meetings that will culminate in a weekend summit that US President Barack Obama will attend.
The BSE 30-share Sensex rose 409.04 points or 2.49% to 16,849.60. At the day's high of 16887.80, the Sensex rose 447.24 points in late trade. The Sensex fell 35.17 points at the day's low of 16405.19 in early trade.
The S&P CNX Nifty rose 122.25 points or 2.5% to 5,003.95. Nifty November 2009 futures were at 5,013.95, at a premium of 10 points as compared to spot closing of 5,003.95. Turnover in NSE's futures & options (F&O) segment jumped to Rs 86,963.91 crore from Rs 81,008.35 crore on Tuesday, 10 November 2009.
The market breadth, indicating the overall health of the market was strong. On BSE, 1718 shares advanced as compared with 1002 that declined. A total of 87 shares remained unchanged.
BSE clocked a turnover of Rs 5961 crore, slightly lower than Rs 5972.60 crore on Tuesday 10 November 2009.
All the shares from the 30 share Sensex pack rose.
The Sensex is up 7,202.29 points or 74.65% in calendar year 2009, as on 11 November 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8689.20 points or 106.48%, as on 11 November 2009.
Coming back to today's trade, the BSE Mid-Cap index rose 2.01% and the BSE Small-cap index rose 1.6%. Both the indices underperformed the Sensex.
The BSE Metal index (up 4.27%), the BSE IT index (up 3.94%), the BSE Teck index (up 3.38%), outperformed the Sensex.
The BSE FMCG index (up 0.55%), the BSE Healthcare index (up 1.88%), the BSE PSU index (up 2%), the BSE Oil & Gas index (up 2.03%), the BSE Bankex (up 2.04%), the BSE Power index (up 2.04%), the BSE Auto index (up 2.07%), the BSE Realty index (up 2.34%), the BSE Capital Goods index (up 2.36%), the BSE Consumer Durables index (up 2.37%), underperformed the Sensex.
Energy major Reliance Industries (RIL) rose 2.7%. RIL on Tuesday announced its first oil discovery in its exploration block in the Cambay Basin off Gujarat. Reliance holds 100% participating interest in the block. This block was awarded to Reliance under the fifth round of the New Exploration Licensing Policy.
RIL on Tuesday said reports of a meeting between the billionaire Ambani brothers to settle a gas-pricing dispute were baseless. Reliance Industries, controlled by billionaire Mukesh Ambani, is embroiled in a high-profile legal battle over a deal to sell gas to Reliance Natural Resources, led by Ambani's estranged younger brother Anil, at below the price set by the government. RIL said in a statement the matter would be decided by the Supreme Court, which is currently hearing the case.
The RIL stock had jumped 3.46% on Monday, 9 November 2009, 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.
IT stocks rose after the president of industry body Nasscom said the sector will regain double-digit growth from April 2010. India's second largest software company by sales Infosys rose 4.08% even as its ADR fell 1.81% on Tuesday. The back-office arm of Infosys Technologies is looking at acquiring firms in Europe and in the United States of $50 million to $100 million, a top official said on 9 November 2009. Infosys BPO would also hire 1,200 people in the current financial year, the unit's chief executive, Amitabh Chaudhry, told reporters on the sidelines of the World Economic Forum.
Infosys said on 5 November 2009 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 5 November 2009, 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.
India's third largest software company by sales Wipro rose 3.88% as its ADR rose 1.39% on Tuesday. Wipro, sees robust deal pipeline on the back of improving IT demand worldwide, Suresh Vaswani, joint chief executive said on Tuesday 10 November 2009. The company said on 5 November 2009 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.
India's largest software company by sales Tata Consultancy Services (TCS) rose 3.28%. The company recently secured a 150 million pounds software implementation contract for 15 years from Cardiff city council, UK.
Metal stocks rose on rally in metal futures on the London Metal Exchange and on strong domestic demand. Hindustan Zinc, Hindalco Industries and Sterlite Industries rose by between 2.97% to 6.5%.
National Aluminium Company rose 1.24%. 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.
Tata Steel, the world's eighth largest steelmaker by output, rose 4.28%. 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.
Steel Authority of India rose 1.73% despite reports the company may cut prices of flat steel products sold in the spot market by Rs 500 a tonne next month in line with international price movement.
Demand for steel remains strong from auto, rural construction and infrastructure sectors. Also demand for construction grade steel has improved post monsoon season, and has resulted into higher sales.
India's largest engineering and construction firm by sales Larsen & Toubro rose 2.65%. The company announced on Monday 9 November 2009 that it won on orders worth Rs 1635 crore.
Among other capital goods stocks, Bharat Heavy Electricals, ABB, Thermax, BEML rose by between 0.99% to 3.09%.
Auto stocks rose as low interest rates and attractive benefits offered by companies pushed up sales in October 2009.
India's largest tractor maker by sales Mahindra & Mahindra rose 2.92%. 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 truck marker by sales Tata Motors rose 4.68%. 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 rose 0.94%. 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 1.17%. Carlos Ghosn, chief executive of French car maker Renault and Japan's Nissan Motor Co, said on Tuesday an agreement had been signed with Bajaj Auto for a low-cost car which would come to India in 2012.
India's largest small car marker by sales Maruti Suzuki India rose 0.49%. 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.
Car sales in India rose an annual 34% to 132,615 units in October 2009, boosted by festival demand and easier availability of loans, an industry body said on Wednesday. Sales of trucks and buses, a gauge of economic activity, rose 52% to 42,562 units in October 2009, the data showed.
Rate sensitive realty shares reversed early losses on bargain hunting. Indiabulls Real Estate, Omaxe, Unitech, DLF rose by between 0.69% to 3.07%.
The RBI, last week, 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. 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.
Banking shares rose on hopes of financial sector reforms. India's largest private sector bank by net profit ICICI Bank rose 3.35% even as its ADR fell 1.84% on Tuesday. 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 1.92% even as its ADR fell 0.5% on Tuesday.
India's largest bank by net profit State Bank of India (SBI) rose 0.48%. State Bank of India said on 9 November 2009 said 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.
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.
India's largest thermal power generator by sales NTPC rose 1.53%. The company said on Tuesday it has entered into an agreement with the Madhya Pradesh state government and MP Power Trading Company for setting up a 2,640 megawatts (MW) thermal power plant in the Narsinghpur district of the state. This project would have four units of 660 MW each with supercritical technology. NTPC has total installed capacity of 30,644 MW through 26 power plants. The company has a capacity addition target of becoming 75 GW by 2017 and currently has 17,930 MW under construction.
Among other power stocks, Reliance Infrastructure, Torrent Power, Reliance Power rose by between 0.05% to 5.31%.
Some PSU stocks rose after Prime Minister Manmohan Singh on 5 November 2009, approved divestment in public sector companies to raise funds for social welfare. Hindustan Copper, State Trading Corporation, MMTC,MTNL, NMDC, Hindustan Copper, Power Finance Corporation rose by between 1% to 14.17%.
Construction shares rose on government's thrust on infrastructure. 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. Hindustan Construction Company, Nagarjuna Construction Company and Jaiprakash Associates, Gayatri Projects rose by between 2.29% to 6.27%.
FMCG stocks rose on bargain hunting after recent fall. Marico, ITC, Hindustan Unilever, United Spirits, REI Agro rose by between 0.06% to 8.06%.
Shipping firms rose after the Baltic Dry Index, which tracks rates to ship dry commodities, breached the 3,500 level on Tuesday. Shipping Corporation of India, Mercator Lines, Great Eastern Shipping Company rose by between 5.61% to 13.59%.
Cals Refineries clocked highest volume of 2.96 crore shares on BSE. Suzlon Energy (1.59 crore shares), Mahindra Satyam (1.21 crore shares), GVK Power & Infrastructure (1.12 crore shares) and Unitech (0.94 crore shares) were the other volume toppers in that order.
Educomp Solutions hit highest turnover of Rs 272.56 crore on BSE. Reliance Industries (Rs 177.92 crore), State Bank of India (Rs 144.08 crore), Mahindra Satyam (Rs 143.55 crore) and Sesa Goa (Rs 40.72 crore) were the other turnover toppers in that order.
Asian Markets end up mixed on Wednesday
Shanghai slips on melded economic data whereas Sensex surge in spite of cyclone alert
Stock markets in Asian region witnessed a mixed trend on Wednesday, 11 November 2009, following a rather choppy session on Wall Street overnight. Some of the regional markets did get off to a bright start, but are seen struggling for support at higher levels finishing the day at par. With no significantly positive cues to warrant any strong buying, investors were seen indulging in some profit booking, cashing in gains from recent sharp rallies.
On Wall Street, stocks in the U.S. stayed within a tight range and closed mixed on a fairly uneventful day for the markets. The Dow Jones Industrial Average added 20 points, or 0.2%, to 10,247. The S&P 500 held flat at 1093, while the Nasdaq slipped 3 points, or 0.1%, to 2151.
In the commodity market, crude oil traded near $79 a barrel after an industry report showed U.S. crude and fuel stockpiles rose, outweighing signs of economic expansion in China.
Crude oil for December delivery traded at $78.69 a barrel, down 36 cents, in electronic trading on the New York Mercantile Exchange at 2:12 p.m. Singapore time. Yesterday, the contract fell 38 cents to settle at $79.05.
Brent crude for December settlement was at $77.11 a barrel, down 66 cents on the London-based ICE Futures Europe exchange at 2:23 p.m. Singapore time. Yesterday, the contract fell 27 cents, or 0.3%, to end the session at $77.50.
Gold rose to a record in London and New York as the dollar fell for a third day, spurring demand for the metal as a hedge against further weakness. Gold for immediate delivery rose as much as 0.9% to $1,115.80 an ounce, before trading at $1,115.20 at 8:08 a.m. London time. December-delivery gold on the Comex division of the New York Mercantile Exchange added as much as 1.2% to $1,116 an ounce.
In the currency market, the US dollar edged down against the yen after better-than-expected Japanese machinery orders data, but was nearly flat against other major rivals.
The Japanese yen strengthened against major currencies after Japanese machine orders rose more than forecast, adding to evidence the economic recovery is gathering momentum. The Japanese yen was quoted at 89.8270 versus the US dollar, up from Tuesday’s quote of 89.86 yen.
The Hong Kong dollar was trading at HK$ 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 closed a fraction higher on Wednesday, after positive offshore and poor domestic economic data left the unit trading in a tight range. At the local close, the dollar was trading at $US0.9296, up from Tuesday’s close of $US0.9259. During the overnight session, the unit traded in a tight range between $US0.9286 and $US0.9324.
In Wellington trade, the New Zealand dollar was volatile this afternoon after Chinese financial data was released. The NZ dollar rose to US74.39c around 3pm, before settling at US74.04c at 5pm from US74.06c at the same time yesterday.
The South Korean won ended at 1,157.9 won against the greenback, up 4.3 won from Tuesday's close, as offshore investors unloaded the greenback.
The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.3430, 0.0060 up from Tuesday’s close of NT$32.3490
In the equity market, Asian stock markets were mixed as investors digested recent gains and mulled a mixed bag of Chinese data. Wall Street's tepid performance Tuesday provided little impetus for Asia, with the Dow Jones Industrial Average up just 0.2% and the S&P 500 flat.
In Japan, shares market finished the session in mixed terrain with benchmark Nikkei 225 managed to extend winning streak for fourth consecutive day. Market lost its early gains inspired by better than expected Japanese machinery orders and improving corporate earning as yen appreciation concern after greenback retreat to lower 89-yen range.
At closing bell, the Nikkei 225 Stock Average index was at 9,871.68, gained 0.95 points, or 0.01% from its previous close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange fell 0.15 points, or 0.02% to 872.29.
On the economic front, the Cabinet Office said Japan’s core machinery orders, a closely watched indicator of corporate capital spending, jumped 10.5% in September, outperforming forecasts and rising for the second month in a row. The Cabinet Office predicted that in the current October-December quarter, orders will increase 1.0% from the previous quarter.
In Mainland China, share market finished the session lower with benchmark Shanghai Composite snapped eight days winning streak as market participants’ banked profit.
The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, shrank 3.42 points, or 0.11%, to 3,175.19, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, lost 0.23%, to 3,495.67.
On the economic front, the statistics bureau of china said the nation’s industrial production rose 16.1% from a year earlier in October, the most since March 2008. Retail sales gained an annual 16.2% in October, and urban fixed-asset investment climbed 33.1% in the first 10 months of this year.
The People’s Bank of China stated today that domestic banks extended 253 billion Yuan ($37 billion) of new local-currency loans in October, lower than 516.7 billion Yuan in September.
On the other side, the customs bureau said export tumbled 13.8% in October from previous year. That narrowed from a 15.2% decline in September.
In Hong Kong, the stock surged with benchmark Hang Seng index endured gains for fourth day in row as gains from the major heavyweight after better than expected China’s retail sales and industrial production figures.
At closing bell, the Hang Seng Index escalated 359.05 points, or 1.61%, to 22,627.21, 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 93.24 points, or 0.7%, to 13,460.43.
In Australia, the share market added extending winning streak for fourth consecutive day, with almost all sector were higher, exception was industrials. Property trusts shares outperformed in market on news Investa Property, an Australian real estate firm owned by Morgan Stanley funds, was abandoning plans to list on the market and preventing the dilution of funds for other sector players.
At closing bell, the benchmark S&P/ASX200 index spurted 23.4 points, or 0.49%, to 4,765.9, meanwhile the broader All Ordinaries surged 21.9 points or 0.46%, to 4,765.9.
On the economic front, the Westpac-Melbourne Institute consumer sentiment index dropped by 2.5% to 118.3 in November after a 1.7% rise in October. The decline comes on the back of two-rate rises in recent months taking a bite out of consumer discretionary spending.
Australian Bureau of Statistics stated that lending finance data for September was up 6.1%. The lift in lending finance was coming from housing and commercial loans in the month.
The Department of Education, Employment and Workplace Relations stated that the country's leading indicator of employment rose for the fifth consecutive month in November to minus 0.841 from the previous reading of minus 0.998 in October.
In New Zealand, benchmark index registered a weak session ending the day in the negative region. The New Zealand share market slipped in early trading after stocks in the United States moved only slightly. The share market fell, ending three day winning streak. The NZX50 edged down 0.19% or 5.86 points to 3161.54. The NZX 15 inched up 0.02% or 1.398 points to close at 5713.26.
On the economic front, New Zealand’s food prices decreased 1.5 percent in the October 2009 month, Statistics New Zealand said Wednesday. This is the largest fall in three-and-a-half years. The food price index also fell in September and August, by 0.7 and 0.9%, respectively. Statistics NZ noted that although food prices are now 2.0% higher than a year ago, they are 12.1% higher than two years ago.
New Zealand’s rising tourist numbers underpinned gains in accommodation last month as the number of guest nights increased for all operators. Total guest nights rose 1.2%, seasonally adjusted, to 2.7 million in September compared to a month earlier, and have climbed 3% from the same month in 2008, according to the Accommodation Survey released by Statistics New Zealand.
Meanwhile, Reserve Bank Governor Alan Bollard on Wednesday while releasing the Bank’s November 2009 Financial Stability Report said that as international conditions have stabilized, outlook for the New Zealand economy and financial system has improved in the past six months, although some risks and challenges remain.
Dr Bollard noted that while the improved global outlook was generally positive for New Zealand, the rise in the New Zealand dollar over recent months could hinder continued improvement in the external balance. The New Zealand economy needs to live more within its means to reduce its vulnerability to adverse developments in offshore markets.
In South Korea, stocks closed higher as investors snapped up tech blue chips and securities shares. After range-bound trading, the benchmark Korea Composite Stock Price Index (KOSPI) climbed 12.52 points to 1,594.82.
In Singapore, stock market spurted with gains from major banks and blue chip shares on strengthening confidence for economic recovery after Japan’s machinery orders surged, China’s retail sales and industrial production accelerated and shipping rates climbed. The blue chip Straits Times Index was ended session at 2,740.43, gained 32.83 points or 1.21%.
In Taiwan, stock market stretched its winning streak in fourth session following the regional rally witnessed after Japan’s machinery orders surged, China’s industrial production accelerated and South Korea’s unemployment fell. The benchmark Taiex share index stretched gains for fourth session by adding 74.57 points or 0.98% in a day, closing at 7668.06, the highest closing since 26 October 2009 when market finished at 7668.40.
In Philippines, momentum remained very strong as the markets hit nineteen months high above 3000 mark, driven by soaring international gold prices, which lifted mining issues. The benchmark index PSEi ascended 1.68% or 50.43 points to 3,047.14, while the All Shares index mounted 1.04% or 19.52 points to 1,885.77.
On the economic front, the data released are showing positive economic prospects for the country. Domestic liquidity or M3 continued to post double-digit growth in September 2009, albeit at a slower rate of 11.6% year-on-year compared to 13.4% in the previous month. The double-digit growth of domestic liquidity was due in part to resilient foreign exchange inflows, indicating that funds in the banking system remain adequate to support economic activity.
Increasing signs of global economic recovery along with ample liquidity conditions provided support to credit activity. Outstanding loans of commercial banks including reverse repurchase agreements (RRPs) grew by 6.1% year-on-year to reach P2.2 trillion in September 2009, acceleration from the previous month's growth of 3.1%.
In India, bulls were back in command as the key benchmark indices surged in mid-afternoon trade after China reported continued strength in industrial production growth, keeping alive hopes of a recovery in global economy. The market shrugged off Cyclone Phyan which is expected to bring heavy rains to Mumbai, the commercial capital. The BSE 30-share Sensex closed up by 409.14 points or 2.49% to 16849.60. The S&P CNX Nifty finished higher by 122.25 points or 2.50% to 5003.95.
Elsewhere, Malaysia's Kula Lumpur Composite index finished slightly lower at 1270.15 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2403.88.
In other regional market, European shares climbed on Wednesday, moving higher for the fifth time in six sessions, with miners leading the advance as metal futures climbed. The U.K. FTSE 100 index rose 0.8% to 5,271.83, the German DAX index climbed 0.9% to 5,658.67 and the French CAC-40 index up 0.9% at 3,818.29.
Sensex shoots up 409 points
Today's major news
Shree Renuka Sugars acquires Brazilian company; the stock ends 1.91% higher.
HCL Technologies is looking for string of acquisitions; the stock closed the session 5.18% higher.
Rural Electrification Corporation gets Power Ministry’s nod for follow on public offer; the stock closed 5.46% higher.
Sun Pharmaceutical Industries sues Zydus Cadila for trademark violation; the stock ends the session 2.44% higher.
Bombay Rayon Fashions to raise funds; the stock closed the day 4.69% higher.
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Post-market summary
Global signals
On Tuesday, major US indices closed mixed and almost flat, as investors turned cautious on the market touching its 13-month high. The European markets lost steam owing to bleak performance on earnings front by Vodafone and weak metal prices that dragged the mining stocks. In today's trade, European indices opened higher with decent gains of over 1% each on the back of strong Asian cues. At the time of writing this report, FTSE 100 was trading at 5279 with gains of 48 points or 0.93%.
All the major Asian indices again managed to end the day in green with gains in the range of 0.01-2.49%, however China's Shanghai Composite was an exception that closed in red with marginal loss of 0.11%. Among Asian indices, the BSE Sensex surged the most, while the Nikkei 225 rose the least. SGX Nifty that opened marginally higher ended the day with heavy gains of 121 points.
Indian indices
It was all green for the Sensex, as all the 30 stocks of the benchmark index ended the day in positive zone. After a weak start, mere four points above its previous close, The Sensex soon slid into negative zone for a short period. However, it shot up from that point and never looked back to end the day 2.5% higher. The Sensex opened weak following the mixed global cues. However, with the Asian markets gaining momentum, Indian market took pace and outpaced other Asian indices. The Sensex that started the day at 16444, soon turned negative to hit the day’s low of 16405, however since then the market never looked back and surged to hit the high of 16888 in the closing session. At closing bell, the Sensex was 409 points higher owing to strong European opening and Asian closing.
Up, up and further up for the Sensex that ended the day at 16849 with over 2.5% gains, as metal, information technology (IT) and TECk stocks shone. It was a day when Nifty rejoiced and reclaimed the significant psychological level of 5000 and ended the day slightly higher at 5004, up by 122 points or 2.50%.
Sensex sentiment
The market breadth was positive, as out of 2,817 stocks traded on the BSE, 1,726 stocks advanced, whereas 1004 stocks declined. Eighty seven stocks closed unchanged.
Sectoral & stock screening
All the 13 sectoral indices closed positive today. BSE Metal index topped the sectoral index list posting gains of 4.27% to be followed by BSE IT that rose over 3.94% for the day. The remaining 11 indices ended the day 0.55% to 3.36% higher.
On stocks’ front, Jubilant Organosys was the star stock rising by 19.98% to be followed by Neyveli Lignite that gained over 14.79% and Hindustan Copper that shot up 14.17%. Educomp solutions, Shipping Corporation of India and Marico surged by more than 8% each. Among losers, Jai Corp slid the most, by 5.50%, to be followed by Adani Enterprises that fell 2.52% for the day. Indian Oil Corporation and Gujarat Petronet fell by over 1.50% each.
Viewing volumes
On turnover front, over 1.59 crore shares of Suzlon Energy changed hands on the BSE followed by GVK Power & Infrastructure (1.12 crore shares), Unitech (0.94 crore shares), Neyveli Lignite (0.70 crore shares) and Ispat Industries (0.70 crore shares).
Nifty November 2009 futures above 5,000
Turnover rises
Nifty November 2009 futures were at 5,013.95, at a premium of 10 points as compared to spot closing of 5,003.95. Turnover in NSE's futures & options (F&O) segment jumped to Rs 86,963.91 crore from Rs 81,008.35 crore on Tuesday, 10 November 2009.
Tata Motors November 2009 futures were at discount at 616.75 compared to the spot closing of 620.80.
Reliance Industries November 2009 futures were at a slight discount at 2,120 compared to the spot closing of 2,124.05.
Tata Steel November 2009 futures were near spot price at 527 compared to the spot closing of 527.90.
In the cash market, the S&P CNX Nifty surged 122.25 points or 2.50% at 5,003.95.
Daily News Roundup - Nov 11 2009
Reliance Industries announced the first discovery of oil in the Cambay basin, which, if proven, will add significantly to its hydrocarbon reserves. (ET)
Reliance Industries said the KG-D6 field is operating at less than 70% of the capacity as the government is yet to notify additional customers. (BS)
Harish Salve, the lawyer representing Reliance Industries, said there were no ongoing negotiations to reach an out-of-court settlement with RNRL to resolve the legal dispute over supply of gas from the Krishna-Godavari basin. (ET)
ONGC-Mittal Energy Ltd has pushed back its plans to start the first phase of hydrocarbon exploration in Nigerian block OPL-279 due to technical reasons. (BL)
Infosys plans to increase its sales and client services headcount by 50% by the end of this financial year, most of which will happen in Europe. (BS)
NTPC’s 1,600MW Farakka and 2,340MW Kahalgaon stations have halted operations due to acute coal shortage. (BL)
Renault and Nissan announced a final agreement with Bajaj Auto to produce an ultra low cost car in 2012. (BS)
Wipro is eyeing acquisitions in the BPO space as it expects the sector to drive the growth for the IT industry. (BS)
Wipro plans to organise two-day walk-in interviews for experienced IT professionals across the country starting November 14. (BS)
Satyam said the US lawsuits filed against it should be dismissed because its home country is the proper place for the litigation. (ET)
Siemens energy unit has bagged an order worth Rs60.8bn from Qatar’s General Electricity and Water Corporation. (FE)
SAIL may cut prices of flat steel products sold in the spot market by Rs500/ton next month in line with international price movement. (ET)
Union Bank of India said it has sought financial assistance worth Rs180bn from the government to meet credit growth in the coming years. (ET)
Based on a trademark complaint filed by Sun Pharmaceuticals, Madras High Court directed Zydus Cadila not to sell its anti-depressant drug, Venz, in the domestic market. (BS)
Bajaj FinServ and Bajaj Holdings & Investment have received a licence from RBI to carry on the businesses of a NBFC. (ET)
IL&FS, that gained management control of Maytas Infra in September, reviewed the status of several projects and off-loaded stake in a couple of projects to improve the financial health of the company. (ET)
KSK Energy Ventures has decided to open the proposed Rs200bn issue of securities under a QIP. (ET)
REC said it has received approval from the power ministry for its proposed follow-on public offer. (ET)
Nagarjuna Construction has received five projects worth Rs72bn for construction related work. (FE)
Allahabad bank plans to open 26 centralized retail banking boutique across country by end of the current fiscal. (FE)
MMTC has invited bids for sale of 4,000 tons of imported tur in the domestic market. (ET)
Petronet LNG expects to award contracts for its second LNG jetty at Dahej in Gujarat next month. (BL)
Tata Chemicals has scaled up stake in Rallis India by 4% to over 50% through subscription of preferential shares for Rs8.9bn. (ET)
Moser Baer to infuse US$5bn in 10 years. (FE)
Following the commencement of exploration activities at its Mumbai offshore block, Adani Welspun Exploration, a JV between Adani Enterprise and Welspun Group, awarded a contract for three dimensional seismic survey to Western Geco, a Schlumberger Group Company. (BS)
Sundaram Brake Linings plans to invest Rs215mn in expanding capacity of its friction material unit. (BS)
Essar Paradip Terminals Limited, a SPV formed by Essar Shipping Ports and Logistics Limited and Essar Shipping and Logistics Limited, signed a concession agreement with the Paradip Port Trust for the development of a 14mmtpa deep draught coal berth at Paradip Port in Orissa. (BS)
Inorder to tap the small and medium garment retailers, Gokaldas Exports has launched its Cash-and-Carry retail format. (BS)
Royal Enfield, a division of Eicher Motors, plans to increase its annual sales to 0.1mn by 2013. (BS)
SEBI bars Pyramid Saimira from the stock market for seven years. (BS)
State-owned Orissa Mining Corporation is likely to get final approval from the Union ministry of environment and forests this month for the Niyamgiri hill mining project near Lanjigarh for supplying bauxite to the alumina refinery of Vedanta Aluminium. (BS)
Andhra Pradesh Mineral Development Corporation and NMDC will enter into a MoU by the end of this month for exploration of iron ore in Kadapa, Kurnool, Chittoor and Karimnagar districts in the State. (BL)
IIFCL plans to raise US$500mn through medium term notes to fund projects in power, road, ports and airport sectors. (BS)
Volvo-Eicher Commercial Vehicles, which is believed to have an order for ~150 buses under JNNURM, plans to roll out its semi low-floor buses by the second half of next year. (BL)
The FIPB has approved the proposal from Hathway Cable and Datacom for bringing in FDI of Rs166.5mn after its proposed IPO. (BS)
Indian Railways’ freight traffic rises 11.7% in October. (ET)
The government finalized changes in the FDI policy to account for concerns voiced by security agencies. (BS)
The state governments have proposed dual GST structure, with two rates for goods and a single rate for services. (BS)
The discussion paper released by empowered group said cross-utilisation of input tax credit between the central GST and state GST would not be allowed, except in the case of inter-state supply of goods and services under the IGST model. (BS)
The center has allocated Rs700mn and Rs400mn for setting up of two handloom parks in Tamil Nadu. (BS)
The Himachal Pradesh government decided to float fresh tenders for the 236MW Dugar project, 81MW Tingret, 70MW Mane Nadang, 60MW Lara, 40MW Kuling Lara, 13MW Suil and 7.5MW Kihil Bahl projects. (BS)
Finance Minister said India could achieve 9-10% growth in FY13 and 8% in the preceding year. (BS)
The Union government is likely to announce another incentive package for labour intensive export sectors by early December. (BS)
IRDA has set up a committee to finalise norms for listing of insurance companies. (BS)
Sugar millers in Uttar Pradesh have agreed to pay farmers ~Rs180/quintal for their produce. (BS)
Southern India Mills’ Association has urged the Centre not to register any further contracts for cotton exports and ban exports for the current season 2009-10 as total production will slip to 26mn bales against 29mn bales last year. (BS)
Various states have placed orders for purchase of 11,185 buses under the one-time scheme by the Urban Development Ministry to boost urban transport under the JNNURM. (BL)
NASSCOM expects Indian IT sector to return to double digit growth by the next financial year as global business sentiments improve. (BL)
No storm on the bourses!
The wise man in the storm prays to God, not for safety from danger, but deliverance from fear.
Climate change has been an issue gaining center-stage. Fears are that a ‘deep depression’ over the Arabian Sea is expected to turn into a cyclone. Unusual winter showers may give a few people the chill, but there are no signs of any big storm hitting the market as yet. Today we expect a cautious opening. Technically, the immediate support could kick in at around 4800-4820 while 4950 remains a tough resistance to crack.
Global cues are not offering a firm trend. There could be some more cooling as the market awaits the next batch of positive news – both from the economy and corporates. Withdrawal of stimulus measures would be a big test. Inflation too is gradually picking up and interest rates can only go up from here.
The market is set to remain sideways with mostly a positive bias. The overall undertone will remain at the mercy of overseas flows and global developments. Stick to a measured and stock centric approach. You can’t prevent a storm, but you could certainly ensure your safety.
FIIs were net buyers in the cash segment on Tuesday at Rs2.59bn on a provisional basis. The local funds were net buyers of Rs1.82bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs6.57bn. On Monday, the foreign funds were net buyers of Rs6.49bn in the cash segment. FIIs' net investments in Indian stocks this year is above $14.5bn.
US stocks ended mixed on Tuesday, giving up some gains, as the market faltered after a triple-digit rally in the previous session. The pullback after a day of choppy trade showed that investors are cautious as the Dow Jones Industrial Average touched a 13 month high on Monday.
After reversing several times, the Dow closed up 20 points, or 0.2%, to close at 10,246.97. The S&P 500 closed virtually unchanged at 1,093.01, and the Nasdaq Composite index fell 3 points, or 0.1%, to 2,151.08.
Monday's rally came after the Group of 20 (G20) said over the weekend that it would keep economic stimulus in place. Monday's rally was the Dow's third gain of more than 199 points in the past eight trading days. But despite roaring back from its March nadir the Dow is still 28% below the record high set in October 2007.
A falling dollar boosted prices for gold, oil and other commodities. Investors will focus on these markets in the absence of major economic reports as well as corporate news, including earnings from Applied Materials, Wal-Mart and Walt Disney.
The Dow has soared 56% after hitting a 12-year low in March, and the blue-chip index is up 16.5% for all of 2009. The Nasdaq has jumped 36.6% this year.
Most US cities saw gains in the median price of single-family homes sold last quarter, said a report from the National Association of Realtors. The national median home price was $177,900 in the third quarter, up $7,000 from the previous quarter.
In other housing news, the Treasury Department said that 650,000 troubled borrowers have been put into trial loan modifications under the Obama administration's foreclosure rescue plan.
Sprint Nextel said that it plans to cut between 2,000 and 2,500 jobs in an attempt to reduce costs.
The European Commission has objected to Oracle's proposed takeover of Sun Microsystems, which could threaten the deal.
The dollar rose off 15-month lows, jumping slightly against the euro and the British pound. The greenback inched up on the Japanese yen.
The price of US crude oil fell 38 cents to settle at $79.05 a barrel.
Treasurys were steady, after a record $25 billion offering of 10-year notes attracted strong demand. The 10-year yield fell to 3.47% from 3.48% late on Monday. The government is selling $81 billion worth of debt this week in a quarterly refunding. Treasury will auction $16 billion in 30-year bonds later in the week.
Weakness in auto shares offset gains for banking giant HSBC in Europe, as the broader market failed to extend sharp gains from the previous session. The pan-European Dow Jones Stoxx 600 index fell 0.2% to close at 245.31.
UK's FTSE 100 index slipped 0.1% to 5,230.55, while Germany's DAX index declined 0.1% to close at 5,613.20. The French CAC-40 index eked out a gain of 0.10 point to finish at 3,785.59.
Volkswagen preferred shares tumbled 15.8% after Qatar Holding sold 25 million shares in the German carmaker. Porsche Automobil Holding lost 3.7%.
Dalal Street witnessed a Tuesday twister today. After starting off on another positive note, the Indian market ended in the red amid high volatility, snapping its four day winning streak. High beta space like Real Estate bore the brunt of the selloff. Even the relatively safe haven IT stocks and telecom heavyweights like Bharti and RCOM came under pressure.
The slide was seen despite the Dow hitting new highs. In Asia as well markets ended in the positive terrain and Europe also started off with smart gains.
Technically, the Nifty managed to stay above the medium term trendline for the second day running. However, the index closed below the 50 Day moving average (at 4,889).
The BSE Sensex was down 58 points at 16,440 after touching a high of 16,677 and a low of 16,372. The index opened at 16,552 against the previous close of 16,498. The NSE Nifty was down 17 points to shut shop at 4,881.
In Asia, the Nikkei in Japan was up 0.6%, while Australia's S&P/ASX ended higher by 1.3% at 4,674. Shanghai SE Composite was flat and Hang Seng index in Hong Kong added 0.3%.
In Europe, stocks were trading with smart gains. The FTSE in the UK was up 0.3%, The DAX in Germany was up 0.4% and the CAC 40 index in France gained 0.3%.
Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, shedding 3%, followed by the Teck index that was down 1.3% and the BSE Capital Goods index was down 0.8%.
Even the BSE Mid-Cap index fell 0.4% and the BSE Small-Cap index was down 0.4%.
Among the 30-components of Sensex, 22 stocks ended in the red and 8 ended in the positive terrain. Bharti Airtel, DLF, RCom, Hero Honda and Maruti were among the top losers.
On the other hand, among the major gainers were Tata Motors, SBI, Reliance Industries, Sterlite and ICICI Bank.
Outside the frontline indices, the big losers in the broader market were Educomp, Indiabulls Real Estate, Central Bank, Aban and Sintex Ind. On the other hand, gainers included NMDC, Jai Corp, Exide Ind, Hind Copper and Cummins India.
RNRL announced that the rumors of an imminent out-of-court settlement with RIL on the gas supply dispute are completely baseless and speculative. In addition, Reliance Industries also clarified saying that the out-of-court settlement was untrue and baseless. Reliance Industries also announced that it found oil in a block in the western state of Gujarat and was assessing the commercial viability of the discovery.
Shares of RNRL gained by 2% to Rs73.45. The stock opened at Rs73.2 and made an intra-day high of Rs76.5 and a low of Rs73.1. Total traded volumes stood at 1.15mn shares.
While, shares of Reliance Industries advanced by 1.4% to end at Rs2052. The stock opened at Rs2035 and made an intra-day high of Rs2100 and a low of Rs2007. Total traded volumes stood at 1.3mn shares.
Shares of Alstom Projects gained by 1.5% to Rs529.45 after the Company announced that it won contracts worth Rs3.65bn from Hindalco Industries for supply & installation of four gas treatment plants in India.
Shares of NMDC were locked at 20% upper circuit to end at Rs433.7 after the steel ministry said it will initiate next month a plan to sell a stake in the company.
The government, which owns 98.38% of the company, aims to sell an 8.38% stake as part of a plan to cut holdings in its profitable companies to 90%. The government may raise Rs256bn from its divestment program, according to reports.
Siemens announced that its energy sector has received an order for Rs6.08bn from Qatar General Electricity & Water Corporation (Kahramaa), Doha, Qatar for the complete supply, design, erection, testing and commissioning of 132kV & 66kV High Voltage Cables. This Order is required to be completed over a period of 2 years.
Shares of NTPC edged higher by 0.5% to end at Rs211.8 after the company announced that it signed MoU with Government of Madhya Pradesh for setting up of 4x660 MW coal based thermal power project in Narsingpur District, Madhya Pradesh.
The stock opened at Rs214 and made an intra-day high of Rs214 and a low of Rs210. Total traded volumes stood at 0.4mn shares.
Nagarjuna Construction said it secured five orders worth Rs7.22bn from Bangalore Water Supply and Sewerage Board and Water Resources Department, Bihar for construction of Bituminous Road.
The stock opened at Rs171 and made an intra-day high of Rs171.5 and a low of Rs163. Total traded volumes stood at 0.44mn shares.
Markets to open weak, remain choppy
Headlines for the day
Wipro, Infosys line up BPO buys- DNA Money
Dabur eyes $500m Buyout - DNA Money
REC gets Power Ministry nod for Follow-on offer - Business
Government to tighten rules for FDI approvals - Business Standard
Renault-Nissan finally signs ultra-low-cost deal with Bajaj - Business Standard
Events for the day
Major corporate action:
Ex-date for interim dividend of DCM Shriram Industries, Financial Technologies India, J K Cement, Jagaran Prakashan
Ex-date for stock split of Allied Digital Services from Rs10 per share to Rs5
Pre-market Commentary
Global signals
On Tuesday, the major European indices lost stem, sheding morning gains and ended in the red after four days of gains. The European shares remanined highly volatile and closed marginally lower by around 0.1% each owing to the disappointing results by telecom major Vodafone and weaker metal prices acting drag on mining stocks.
With no major trigger in the hindsight for the US markets, indices ended mixed, expected to continue to move sideways. The investors turned cautious after the indices touching its 13-month high on Monday. Dow closed at 10247 and in the green with marginal gains of 0.20%, while Nasdaq and S&P 500 ended the day in the negative zone with marginal losses of 0.14% and 0.01% respectively.
Even all the major Asian indices that opened positive with marginal gains, were currently giving mixed performance and few sliding in the red. While the SGX Nifty that opened with decent gains, at the time of writing this report managed to sustain gains and was trading 23 points higher.
Indian markets
With mixed signal coming from the global front and no major domestic triggers for the market, Sensex is expected to open marginally higher, however it is expected to remain range-bound and choppy.
Among the local indices, the Nifty could test the 4950-5000 range on the up side, while on the down side it could find support at 4830 and 4800. While the Sensex is likely to get support at 16000 and may face resistance at 16750.
Indian ADR's
Among the Indian ADRs trading on the US bourses - Wipro, Dr Reddy, Tata Motors, MTNL and VSNL closed in green, with marginal gains of 0.06%-1.57% each. While remaining ADR’s closed marginally lower with losses in the range of 0.50%-2.14% each. Among all ADRs, MTNL surged the most, while Satyam declined the most.
Commodity cues
In the commodity space, Crude oil prices again fell marginally, with the Nymex light crude oil for December series sliding by $1.13 to close at $78.30 a barrel after making an intra-day high of $80.45.
In the metals space, the Comex Gold for December series managed to sustain $1100 level. It continued to surge and rose marginally to settle at $1102.50 a troy ounce, while Comex Silver for December series fell marginally by $0.26 to settle at $17.23 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 649.20 crore (with the gross purchase of Rs2280.20 crore and gross sales of Rs1631.00 crore).
While the Domestic mutual funds mutual funds, on November 06, 2009, were net buyer of the stocks in the tune of Rs182.10 crore (with gross purchase of Rs853.40 crore and gross sales of Rs671.30 crore).
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