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Friday, November 20, 2009
Sensex ends above 17k; ACC soars
The Sensex ended sharply higher led by banking, oil & gas and metal stocks. It opened flat with negative bias with a loss of 12.90 points, at 16,772.75 on Friday tracking poor global cues and continued to trade in the red on the back of sustained selling seen in bluechip stocks, touching a low of 16,635.75. However the index recovered and moved into the positive terrain, thus regaining psychological 17,000 mark to finally close on a strong note after hitting a high of 17,041.79. Opening of positive European market supported the upmove.
BSE Midcap and Smallcap index rose 1.08% and 0.43% respectively.
On global front, European stocks advanced as the Dow Jones Stoxx 600 Index rebounded from the steepest retreat this month. UK`s benchmark index FTSE 100 rose 22.67 points, or 0.43%, to trade at 5,290.37. French benchmark index CAC 40 climbed 13.94 points or 0.37% to trade at 3,774.15. Germany`s benchmark index DAX gained 20.77 points or 0.36% to trade at 5,722.95. (4.20 pm)
Asian stocks fell for a fourth day, the longest losing streak since July, after Sony Corp. pushed back its profitability targets and Dell posted lower-than- estimated earnings. Japanese benchmark index Nikkei 225 fell 51.79 points, or 0.54%, to end at 9,497.68. Hong Kong`s Hang Seng is declined 187.32 points, or 0.83%, to end at 22,455.84. China`s Shanghai Composite decreased 12.27 points, or 0.37% to end at 3,308.35.
The Sensex ended the day with a gain of 236.20 points, or 1.41% at 17,021.85 after touching a high of 17,041.79 and a low of 16,635.75. The broad-based NSE Nifty climbed 63.45 points, or 1.27% at 5,052.45 after hitting a high of 5,063.30 and a low of 4,932.80.
Major gainers in the 30-share index were ACC (4.55%), Hindalco Industries (3.47%), Jaiprakash Associates (2.73%), Tata Steel (2.66%), Housing Development Finance Corporation (2.58%), and Mahindra & Mahindra (2.47%).
On the other hand, Reliance Capital (2.76%), Bharti Airtel (1.40%), Reliance Infrastructure (0.62%), Maruti Suzuki India (0.26%), and Bharat Heavy Electricals (0.06%) were the major losers in the Sensex.
Overall market breadth was positive. Out of the total 2,790 stocks traded at BSE, 1,452 advanced, 1,240 declined while 98 remained unchanged.
Among the sectoral indices, BSE Bankex which climbed 1.95%, Oil & Gas rose 1.52%, Metal went up 1.37%, HC climbed 0.96% and IT climbed 0.87%, while BSE Consumer Durables declined 1.35%.
BSE Bulk Deals to Watch - Nov 20 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
20/11/2009 533121 Thinksoft Glob MBL & Co. LTD. B 51463 282.15
20/11/2009 533121 Thinksoft Glob MATRIX EQUITRADE PVT. LTD. B 174620 280.13
20/11/2009 533121 Thinksoft Glob OPG SECURITIES P LTD B 393625 284.29
20/11/2009 533121 Thinksoft Glob MANSUKH STOCKS BROKERS LTD. B 51013 278.60
20/11/2009 533121 Thinksoft Glob GENUINE STOCK BROKERS PVT. LTD. B 61050 282.98
20/11/2009 533121 Thinksoft Glob TRANSGLOBAL SECURITIES LTD. B 73074 282.90
20/11/2009 533121 Thinksoft Glob GENUINE STOCK BROKERS PVT. LTD. S 61050 283.26
20/11/2009 533121 Thinksoft Glob TRANSGLOBAL SECURITIES LTD. S 71174 282.98
20/11/2009 533121 Thinksoft Glob MBL & Co. LTD. S 51463 282.28
20/11/2009 533121 Thinksoft Glob MATRIX EQUITRADE PVT. LTD. S 174620 280.48
20/11/2009 533121 Thinksoft Glob OPG SECURITIES P LTD S 393625 284.60
20/11/2009 533121 Thinksoft Glob MANSUKH STOCKS BROKERS LTD. S 51013 279.32
20/11/2009 531519 ANKUSH FINSTOCK BHARAT MANUBHAI SHAH S 66385 5.22
20/11/2009 506074 ARSHIYA INTL TREE LINE ASIA MASTER FUND (SINGAPORE) PTE LIMITED B 1126000 131.62
20/11/2009 530249 BRIDGE SEC LEENABEN NITINKUMAR SHETH B 20001 19.88
20/11/2009 530249 BRIDGE SEC NITA BANKESH BHAVSAR S 20000 19.88
20/11/2009 531682 CAT TECH VINOD AMRATLAL NAAI B 393667 11.32
20/11/2009 522001 CRANEX VIPUL BHAGWANDAS SHAH B 25000 5.90
20/11/2009 532922 EDELWEISS CAP PRIVATBANK IHAG ZURICH B 2600000 485.00
20/11/2009 532922 EDELWEISS CAP RELIANCE MUTUAL FUND B 800000 485.00
20/11/2009 532922 EDELWEISS CAP RASHESH SHAH-VENKATRAMASWAMY AS TRUSTEES OF EDELWEISSEMPLOYEE WEL B 2113992 485.00
20/11/2009 532922 EDELWEISS CAP GALLEON INTENATIONAL MASTER FUND SPC S 3316131 485.00
20/11/2009 532922 EDELWEISS CAP GALLEON SPECIAL OPPORTUNITIES MASTER FUND SPCLTD GALLEON C S 1952837 485.00
20/11/2009 532022 FILATEX FASH TRUPTI L NAIK S 33772 16.67
20/11/2009 532022 FILATEX FASH KALPANA SONU PADYAL S 53421 16.79
20/11/2009 531439 GOLDSTONE TECH KISHORBHAI BALUBHAI CHAUHAN B 100000 26.00
20/11/2009 531439 GOLDSTONE TECH HEMANT MADHUSUDAN SHETH S 154000 26.00
20/11/2009 508918 GREYCELLS ENTER SANJIV KANWAL CHAINANI B 41650 54.00
20/11/2009 508918 GREYCELLS ENTER KRISMA INVESTMENTS PRIVATE LTD S 39300 54.00
20/11/2009 511543 GSB FINANCE NEELAM RAMAKANT BIYANI B 44884 9.13
20/11/2009 511543 GSB FINANCE GSB SHARE CUSTODIAN SERVICES LTD S 62244 9.14
20/11/2009 532139 GTECH INFO KAUSHIK GANGARAM RATHOD S 800000 2.26
20/11/2009 532139 GTECH INFO JASMIN S BAJORIYA S 671844 2.26
20/11/2009 509597 HARDCASTLE & WAUD VOCATION INV & FIN CO PVT LTD B 4500 595.00
20/11/2009 509597 HARDCASTLE & WAUD SANDEEP CHOUDHARY S 4500 595.00
20/11/2009 523467 JAI MATA GLASS BRIJBHOSHAN KISHAN AGGRAWAL B 75696 2.87
20/11/2009 523467 JAI MATA GLASS BRIJBHOSHAN KISHAN AGGRAWAL S 76300 2.83
20/11/2009 530255 KAY POWER KAUSHALYA GARG B 672700 8.79
20/11/2009 530255 KAY POWER BAMPSL SECURITIES LTD. B 491638 8.38
20/11/2009 530255 KAY POWER GOPINATH SHARMA B 55330 8.14
20/11/2009 530255 KAY POWER OMPARKASH GUPTA B 200000 8.45
20/11/2009 530255 KAY POWER PRABHUDAS LILLADHER P LTD. B 82438 8.53
20/11/2009 530255 KAY POWER NARESHCHAND JAIN B 57093 8.69
20/11/2009 530255 KAY POWER SATISH KUMAR GUPTA B 672502 8.67
20/11/2009 530255 KAY POWER VIJAY KUMAR GOYAL B 107000 8.52
20/11/2009 530255 KAY POWER KAILASH CHAND GUPTA B 97770 8.44
20/11/2009 530255 KAY POWER B.S.KHANDELWAL B 200000 8.25
20/11/2009 530255 KAY POWER GIRRAJ PRASAD GUPTA B 423875 8.84
20/11/2009 530255 KAY POWER KAUSHALYA GARG S 950000 8.33
20/11/2009 530255 KAY POWER BAMPSL SECURITIES LTD. S 491637 8.49
20/11/2009 530255 KAY POWER OMPARKASH GUPTA S 127332 8.63
20/11/2009 530255 KAY POWER PRABHUDAS LILLADHER P LTD. S 82438 8.54
20/11/2009 530255 KAY POWER NARESHCHAND JAIN S 55465 8.75
20/11/2009 530255 KAY POWER SATISH KUMAR GUPTA S 672502 8.89
20/11/2009 530255 KAY POWER SUNIL KUMAR GUPTA S 100000 8.39
20/11/2009 530255 KAY POWER VIJAY KUMAR GOYAL S 107000 8.70
20/11/2009 530255 KAY POWER KAILASH CHAND GUPTA S 97770 8.73
20/11/2009 530255 KAY POWER GIRRAJ PRASAD GUPTA S 310168 8.94
20/11/2009 500265 MAHARASHTRA SEAM STABLE TRADING CO.LTD. B 350000 346.00
20/11/2009 500265 MAHARASHTRA SEAM JHANJHARI HOLDINGS PVTLTD S 350000 346.00
20/11/2009 519287 MODERN DAIRIES ANGEL INFIN PRIVATE LIMITED B 123044 47.86
20/11/2009 519287 MODERN DAIRIES ANGEL INFIN PRIVATE LIMITED S 138648 48.91
20/11/2009 531496 OMKAR OVERSEAS S J INFRATECH PVT LTD B 49210 48.27
20/11/2009 531496 OMKAR OVERSEAS ARCHANADEVI SATYANARAIN AGARWAL S 50000 48.27
20/11/2009 530555 PARAMOUNT COMM MASS ESTATES (P) LTD S 500000 14.67
20/11/2009 524570 PODDAR PIGM SURYA PRAKASH HEDA B 76000 36.08
20/11/2009 532718 PRATIBHA INDS OPG SECURITIES P LTD B 136487 263.51
20/11/2009 532718 PRATIBHA INDS OPG SECURITIES P LTD S 136487 263.91
20/11/2009 590077 RANKLIN SOL SREE LAKSHMI MIKKILINENI B 25800 47.74
20/11/2009 511585 REGENCY TRUST RAJMAL PATNI B 20000 12.40
20/11/2009 511585 REGENCY TRUST SUNIL KAJARIA S 100000 12.40
20/11/2009 524446 SABERO ORGANICS BIPIN GOKULBHAI BHAKTA B 190594 60.27
20/11/2009 524446 SABERO ORGANICS BIPIN GOKULBHAI BHAKTA S 190594 59.48
20/11/2009 513097 SHIVALIK BIMET CHANDRAKANTJVALLAKATI B 125000 21.40
20/11/2009 513097 SHIVALIK BIMET CHANDRAKANTJVALLAKATI S 125000 20.97
20/11/2009 507998 SIMMONDS MARSHALL UDAY VASANTLAL MERCHANT S 12500 120.40
20/11/2009 526133 SUPERTEX INDS KUMKUM STOCK BROKER PRIVATE LIMITED B 727967 3.84
20/11/2009 526133 SUPERTEX INDS KUMKUM STOCK BROKER PRIVATE LIMITED S 726487 3.89
20/11/2009 522229 TANEJA AERO ANGEL INFIN PRIVATE LIMITED B 133500 42.91
20/11/2009 526139 TRANSGENE BIO ANGEL INFIN PRIVATE LIMITED B 93465 38.65
20/11/2009 530961 VIKAS GLOBALONE JAI GANESH CHIT FUND PVT LTD B 17420 22.45
20/11/2009 530961 VIKAS GLOBALONE EKTA AGGARWAL S 17420 22.45
20/11/2009 532867 VISHAL RETL TRANSGLOBAL SECURITIES LTD. B 288429 71.83
20/11/2009 532867 VISHAL RETL TRANSGLOBAL SECURITIES LTD. S 295916 71.57
20/11/2009 531249 WELL PACK PAPERS RAJESH RAVINARAYAN HATI B 27022 314.27
20/11/2009 507817 WIRES & FABRIKS SHRIRAM UDYOG B 21279 92.07
20/11/2009 532788 XL TELECOM DREYFUS PREMIER EMERGING ASIA FUND B 100000 41.25
NSE Bulk Deals to Watch - Nov 20 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
20-NOV-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,6542405,20.47,-
20-NOV-2009,MARALOVER,Maral Overseas Ltd,SETU SECURITIES LTD,BUY,117845,18.54,-
20-NOV-2009,MARALOVER,Maral Overseas Ltd,SVS SECURITIES PVT. LTD.,BUY,111101,18.54,-
20-NOV-2009,RAMSARUP,Ramsarup Industries Limit,INDEX EQUITIES PVT. LTD.,BUY,570000,90.00,-
20-NOV-2009,RAMSARUP,Ramsarup Industries Limit,JAYANTILAL MISTRILAL SANGHVI,BUY,180000,90.00,-
20-NOV-2009,RAMSARUP,Ramsarup Industries Limit,SHANTILAL MISHRIMAL SANGHVI,BUY,350000,90.00,-
20-NOV-2009,SUZLON,Suzlon Energy Limited,GENUINE STOCK BROKERS PVT LTD,BUY,10236164,73.76,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,AANGI SHARES & SERVICES PVT. LTD,BUY,53475,268.83,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,BP FINTRADE PRIVATE LIMITED,BUY,123860,278.94,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,CPR CAPITAL SERVICES LTD.,BUY,136730,282.95,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINESH G. PARMAR,BUY,53336,285.42,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,148860,282.13,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,73284,286.26,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,BUY,114638,280.18,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,BUY,65268,281.85,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,NARENDRABHAI AMTRATLAL AMIN,BUY,50600,282.58,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,BUY,166937,283.03,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,65890,281.72,-
20-NOV-2009,VISHALRET,Vishal Retail Limited,JMP SECURITIES PVT LTD,BUY,236567,75.61,-
20-NOV-2009,VISHALRET,Vishal Retail Limited,MBL & COMPANY LTD.,BUY,155197,71.98,-
20-NOV-2009,VISHALRET,Vishal Retail Limited,TRANSGLOBAL SECURITIES LTD.,BUY,302103,71.16,-
20-NOV-2009,AUSTRAL,Austral Coke & Projects L,RISHIRAJ AGARWAL,SELL,2498547,8.19,-
20-NOV-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,6122405,20.48,-
20-NOV-2009,MARALOVER,Maral Overseas Ltd,SETU SECURITIES LTD,SELL,57824,17.98,-
20-NOV-2009,MARALOVER,Maral Overseas Ltd,SVS SECURITIES PVT. LTD.,SELL,70059,18.25,-
20-NOV-2009,PARACABLES,Paramount Communications,MASS ESTATES PVT.LTD.,SELL,500000,14.65,-
20-NOV-2009,RAMSARUP,Ramsarup Industries Limit,ASHISH JHUNJHUNWALA,SELL,1100000,90.00,-
20-NOV-2009,SUZLON,Suzlon Energy Limited,GENUINE STOCK BROKERS PVT LTD,SELL,10236164,73.78,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,AANGI SHARES & SERVICES PVT. LTD,SELL,60414,279.03,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,BP FINTRADE PRIVATE LIMITED,SELL,121024,279.64,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,CPR CAPITAL SERVICES LTD.,SELL,136730,282.88,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINESH G. PARMAR,SELL,53336,287.31,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,148860,282.26,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,73284,286.45,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,SELL,114638,280.22,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,SELL,65268,281.96,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,NARENDRABHAI AMTRATLAL AMIN,SELL,50600,282.89,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,SELL,166937,283.25,-
20-NOV-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,65690,281.93,-
20-NOV-2009,VISHALRET,Vishal Retail Limited,IFCI FACTORS LTD,SELL,190000,71.04,-
20-NOV-2009,VISHALRET,Vishal Retail Limited,JMP SECURITIES PVT LTD,SELL,8961,75.43,-
20-NOV-2009,VISHALRET,Vishal Retail Limited,MBL & COMPANY LTD.,SELL,155197,72.06,-
20-NOV-2009,VISHALRET,Vishal Retail Limited,TRANSGLOBAL SECURITIES LTD.,SELL,294670,71.47,-
Grey Market - Cox and Kings
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Cox & Kings | 316 to 330 | 7 to 9 |
| DEN Network Ltd. | 195 to 205 | Discount |
| Astec Life Science | 77 to 82 | 2 to 2.50 |
Sensex upbeat, closes above 17K
Today's major news
Thermax bags Rs477-crore worth of order; the stock rises by 3.63%.
Jindal Drilling bags Rs635-crore worth of order; the stock surges 10.42%.
A US company buys 69% stake in NDTV arm; the stock shoots 7.46% up.
Gammon Infrastructure secures Rs850 crore National Highway Authority of India (NHAI) contract; the stock rises 10.81%.
Edelweiss inks pact with Tokio Marine Holdings; the stock ends 0.86% higher.
Click here for more stories
Post-market summary
Global signals
Today, European stocks that opened marginally positive are currently trading stronger with close to 0.50% gains with banking stocks shining.
Major Asian indices closed mixed. Taiwan Weighted dipped the most posting loss of 1% and BSE Sensex surged the most with 1.41% gains. SGX Nifty that opened flat and slipped to the low of 4933 ended the highly volatile day with strong gains of 76 points.
With no major economic indicators to be out today, US markets may remain range-bound and traders will be on a lookout for any company specific events.
Indian indices
After lacklustre opening, Sensex remained in red amidst high volatility for the major part of the day. However it recovered 386 points from its day’s low of 16636. The bellwether opened 13 points lower and slipped from that point by over 400 points in a day before closing above the important psychological level of 17K.
It went to touch the high of 17041, before closing at 17022 that is higher by 1.41% or 236 points. Such bounce-back was possible owing to buying that returned in banking, oil & gas and metal space. Strong opening of European markets helped Nifty to reclaim the strong 5050-level and end the day at 5052, up 63 points.
Sensex sentiment
The market breadth was fairly positive, as out of 2,790 stocks traded on the BSE, 1,452 stocks advanced, whereas 1,240 stocks declined. Ninety-eight stocks closed unchanged.
Sectoral & stock screening
Out of the 13 sectoral indices, all sectoral indices, except BSE CD indices that slid 1.35%, ended in green. BSE Bankex topped the list with gains of 1.95% followed by BSE OIL & GAS that rose 1.52%. The remaining indices closed 0.08% to 1.37% higher.
On stocks’ front, Jubilant Organosys topped the chart surging by 9.44% for the day to be followed by UCO Bank (up 7.96%) and Syndicate Bank that rose by 7.93%. Jaiprakash Hydropower, Andhra Bank and Allahabad Bank were up by over 5% each. Among losers, Welspun Gujarat slid the most by 3.76%, followed by Balrampur Chini that fell by 3.18%, Suzlon Energy that shed 2.93% and United Phosphorus that was down by 2.88%.
Viewing volumes
On turnover front, Over 2.81 crore shares of Suzlon Energy changed hands on BSE followed by Unitech (1.30 crore shares), HDIL (0.62 crore shares), Ispat Industries (0.56 crore shares) and IFCI (0.46 crore shares).
Cox and Kings IPO Subscription Details
Qualified Institutional Buyers (QIBs) - 9.9514 times
Non Institutional Investors 10.6975 times
Retail Individual Investors (RIIs) - 0.9813 times
Feel Retail missed out on a good company here
Derivatives: Fresh long build-up in the December series so early indicates positive trend
Markets will exhibit extreme volatility as we enter into the expiry week; but F&O indication suggest extreme bullishness with fresh long build-up in the December series so early
Aggressive short covering in the November series nifty and stock future during the beginning of the current week resulted in excellent start for the underlying during the beginning of the current week. However as the week progressed, there was visible activity in the December series index and stock futures. Fresh short built-up was witnessed in the nifty future as well as some of the stock futures early. Besides there were aggressive call writing of 5000 and 5100 strikes November call on the previous two days. The market opened the week with no major domestic or international triggers besides the international market activity. Thus the movement was expected to be horizontal as was witnessed during the past 4 days. However on Friday sighting firm opening by the European market the domestic index surged higher to recover the days loses and post higher. Finally the S&P Nifty closed at 5052.45 on Friday rising 63.45 points higher as compared to the previous closing. The nifty future closed at a huge premium of 13.80 points at 5066.25 on Friday. The volumes were significantly higher at Rs 98015.39 crore understandably due to significant interest in the December series as well. The average volume in the futures and option (F&O) segment during the week ended 20th November 2009 was Rs 74819.73 crore. The dramatic recovery of the index during the second half on Friday can be mainly attributed to the huge short covering in the nifty as well as the stock futures in the current series with simultaneous fresh long positions being built in the December series.
For e.g. Nifty November future shed 14.48 lakh shares in open interest (OI) on Friday with simultaneous fresh addition of 21.76 lakh shares in December series. The Nifty November future OI stood at 2.24 crore shares whereas that of December series stood at 80.06 lakh shares. Similar trend was witnessed in some of the front-line index futures also.
Reliance December series added 2.73 lakh shares in OI to take the total OI to 11.1 lakh shares. Tata Motors November series shed 3.73 lakh shares whereas December series added 1.96 lakh shares. Same was the scenario in almost all of the frontline stock futures.
Other major front-line stock futures viz- Infosys, ICICI Bank, DLF and Maruti added significant long OI in the December series as the current months shorts were covered.
Overall the market wide OI on Friday stood at 190.70 crore shares, thus gaining by 5.85 crore shares as compared to the previous trading day. Index future added just 6 lakh shares in OI whereas the major addition was witnessed by the stock futures, which added 4.84 crore shares. (See table OI breakup).
In the nifty option there was fresh put writing of 4900, 5000 and 5100 strikes in the current series whereas there was aggressive covering of the call wrote earlier signifying bullish trend. Especially the 5000 strike call shed 15.42 lakh shares OI. Besides 5100 strike call also witnessed unwinding of 7.28 lakh shares in OI.
The 4900, 5000 and 5100 strike puts added 3.16 lakh shares, 9.87 lakh shares and 7.18 lakh shares in OI to take the total OI of these strikes to 57.95 lakh shares, 53.08 lakh shares and 24.37 lakh shares respectively. The 5000 strike call OI stood at 30.37 lakh shares, while that of 4900 and 5100 strikes stood at 22.92 lakh shares and 40.89 lakh shares respectively.
As we enter into the expiry week the trend looks positive although the markets will exhibit extreme volatility, which is usual during the expiry week. F&O indication suggests extreme bullishness. The fresh long build-up in the December series so early, though unusual is very positive.
Expiry of near-month derivatives contracts may cause volatility derivatives
Equities may remain volatile over the next few days as traders rollover positions in the derivative segment from November 2009 series to December 2009 series ahead of the expiry of the near-month November 2009 contracts on Thursday, 26 November 2009. Tata Steel will be focus as the company declares consolidated Q2 September 2009 results on 26 November 2009. The next day another Tata group firm Tata Motors unveils consolidated Q2 results.
An ongoing recovery in the economy may support share prices. Industrial output grew 9.1% in September 2009 from a year earlier, helped by stimulus and festival demand, and adding to the debate on the timing of exit policy. However, Finance minister Pranab Mukherjee said on Monday, 16 November 2009, that stimulus packages to perk up the economy during the slowdown are unlikely to be withdrawn in the current financial year and the exit when it happens will be a gradual one.
Economists and analysts surveyed by the Reserve Bank of India (RBI) revised downwards India's gross domestic product projection to 6% for 2009/10 from 6.5% in the previous round of survey. The RBI released the results of the ninth round of survey on Monday 16 November 2009. The Organisation of Economic Co-operation and Development (OECD) on Thursday, 19 November 2009, raised India's 2010 GDP growth forecast to 7.3% from 7.2% earlier. OECD sees 7.6% growth in India's GDP in 2011.
The business confidence in India has surpassed the level that prevailed before the financial crisis seized economic growth prospects, according to the latest NCAER (National Council of Applied Economic Research)-MasterCard Worldwide Index of Business Confidence. The Business Confidence Index (BCI) reported a sharp rise of 21%, with a rating of 143.7 points in October 2009, compared with 118.6 points in July 2009. BCI ratings in April 2009 were at their lowest, at 81.6 points, after the global financial crisis hit world economies.
Strong global and domestic liquidity may support equities. A global glut of liquidity has pushed stock markets across the globe sharply higher since March this year. Governments and central banks around the world have injected trillions of dollars in the past one year or so to pull the world out of a most severe recession since the 1930s Great Depression.
Investors will closely watch the debate in parliament on three key reform bills - the State Bank India Amendment Bill, the Pension Fund Regulatory and Development Authority, and the Insurance Bill. The government has set reform of the insurance sector as a priority for the winter parliament session that began on 19 November 2009. The bill, which was stalled in the last parliament, proposes raising the foreign investment limit in insurance companies from 26 % to 49%.
The Pension Fund Regulatory and Development Authority, or PFRDA Bill, seeks to give statutory powers to the pension regulator and open up the sector for foreign investment. The SBI Amendment Bill proposes reducing the government's holdings in the public-sector giant State Bank of India to 51%, against a minimum 55% required by the SBI Act of 1955. The government currently controls a 59.41% stake in SBI.
Meanwhile, Prime minister Manmohan Singh leaves for a landmark visit to Washington on Saturday, 21 November 2009. Though there are no big-ticket items on the agenda, it is being pitched as an important event in the diplomatic calendar of both countries.
Market bounces back as Govt has no plan to tax capital inflows
The key benchmark indices snapped last two days' losses, taking cue from higher European stocks. Comments by the deputy chairman of the government's planning commission that the government is not considering imposing a tax to curb an influx in overseas funds also helped ease worries of likely measures from the policymaker to temper inflows. The BSE 30-share Sensex jumped 236.20 points or 1.41%, up close to 385 points from the day's low.
The S&P CNX Nifty regained the psychological 5,000 mark after falling below that level on Thursday, 19 November 2009. The Sensex regained the psychological 17,000 mark. Metal, banking and IT stocks jumped. Index heavyweight Reliance Industries (RIL) vaulted.
As per provisional data, foreign funds today, 20 November 2009, sold stocks worth a net Rs 463.89 crore. Domestic funds bought equities worth a net Rs 18.46 crore
Intraday volatility on the bourses was high. The market cut losses in early after a weak start triggered by lower Asian stocks and overnight fall in US stocks. The market once again slipped into the red after moving into positive zone for a brief period in morning trade. The market recovered from lower level in mid-morning trade. However, the intraday recovered proved short-lived. The market lost ground later. The Sensex hit a fresh intraday low in afternoon trade. A solid intraday rebound was witnessed later as European stocks rose. The market extended gains in late trade.
Plan panel deputy chairman Montek Singh Ahluwalia said in an interview to a news agency on Friday, 20 November 2009 that he does not see capital flows creating asset bubble. He also doesn't see possibility of the government imposing tax to curb capital flows. Ahluwalia said foreign funds are needed for developing infrastructure such as road projects and are unlikely to create asset price bubbles.
Bubbles only happen if you can't use the money productively, Ahluwalia said. We should be able to use the money productively, he said. On Wednesday, 18 November 2009, Finance Minister Pranab Mukherjee said India would have the tools to deal with an influx of foreign capital inflows if they become disruptive, but they are not a concern yet.
Fears that policymakers may consider measures to curb excessive capital inflows had spooked equities on Thursday, 19 November 2009. A latest move by Brazil to try to contain the appreciation of its currency triggered such concerns. Brazil took another step on Wednesday, 18 November 2009, to try to contain the appreciation of its currency, unveiling a 1.5% tax on certain trades involving American Depositary Receipts issued by Brazilian companies. The Brazilian government, last month, implemented a 2% financial tax on foreign inflows into stocks and fixed income investments.
Among other overseas markets, South Korea announced measures on Thursday aimed to tightening controls over currency liquidity to make the banking system less vulnerable to the capital flight. The Financial Services Commission said it will limit the size of forward foreign exchange transactions that South Korean companies can enter into, to a total value of not more than 125% of the underlying transactions they are hedging against, which could mean less-than-expected selling of dollar-forwards by exporters in the future. Taiwan has already banned foreigners from investing in time deposits.
A global glut of liquidity has pushed stock markets across the globe sharply higher since March this year. Governments and central banks around the world have injected trillions of dollars in the past one year or so to pull the world out of a most severe recession since the 1930s Great Depression.
The industry body Assocham on Tuesday, 17 November 2009, suggested that foreign institutional investors (FIIs) should be charged a tax of 2% of their money pumped into the stock market to prevent further rise of the rupee and also an asset-bubble. At a quarterly policy review late last month, the Reserve Bank of India (RBI) said there were signs excess liquidity is seeping into asset prices.
Imposing the tax would help the RBI to manage rupee at reasonable levels to safeguard and support Indian exporters, hit hard by rising input cost and appreciating rupee, Assocham said. The rupee has appreciated over 5% against the US dollar in the last six months. Indian stocks have risen sharply this year on robust inflow from foreign funds. Foreign funds have bought stocks worth Rs 73786.80 crore so far in calender 2009.
Meanwhile, Prime minister Manmohan Singh leaves for a landmark visit to Washington on Saturday. Though there are no big-ticket items on the agenda, it is being pitched as an important event in the diplomatic calendar of both countries.
In overseas news, the Bank of Japan (BoJ) Governor Masaaki Shirakawa said there was no change in the BoJ's stance on maintaining very low interest rates to support the economy. The Boj at a regular policy meeting on interest rates today, 20 November 2009, unanimously left its overnight call-rate target at 0.1% as widely expected. The BoJ also offered an upbeat outlook on the nation's overall economy, saying that financial conditions continue to show signs of improvement, exports and production continue to increase, and the decline in corporate-capital outlays appears to be ending.
But although economic downside risks have diminished somewhat, the bank said a self-sustaining domestic-demand recovery was still not assured, and that it will maintain its accommodative policies and provide steady support to help the economy recover. Analysts expect the BoJ to maintain its extremely accommodative policy at least through the end of 2010.
Closer home, equities may remain volatile over the next few days as traders rollover positions in the derivative segment from November 2009 series to December 2009 series ahead of the expiry of the near month November 2009 contracts on Thursday, 26 November 2009.
The business confidence in India has reportedly surpassed the level that prevailed before the financial crisis seized economic growth prospects, according to the latest NCAER (National Council of Applied Economic Research)-MasterCard Worldwide Index of Business Confidence. The Business Confidence Index (BCI) reported a sharp rise of 21%, with a rating of 143.7 points in October 2009, compared with 118.6 points in July 2009. BCI ratings in April 2009 were at their lowest, at 81.6 points, after the global financial crisis hit world economies.
While the business confidence index continued on the upward trajectory, the political confidence index released by NCAER showed a slight dip from the previous quarter. As it was at its all-time high in the previous quarter, since its inception in October 2004, the marginal downward correction is on expected lines.
Asia is leading the global economy out of the deepest downturn in decades but the recovery will be marred by high unemployment and huge government debt across the industrialised countries, the Organisation for Economic Co-operation and Development (OECD) said on Thursday.
Central banks and governments in major Western economies should prepare for a gradual upwards shift in ultra-low interest rates and for fiscal consolidation once recovery is stronger, but they will only need to move in late 2010 at the earliest given that inflation is so low, it said in its Economic Outlook. The Paris-based Organisation for Economic Co-operation and Development raised its global growth forecast for 2010 to 3.4% from the 2.3% it was predicting as recently as June, after an estimated contraction of 1.7 % in 2009.
In the twice-yearly report, the OECD lowered its estimates of the scale of this year's recession and substantially raised most of its forecasts for growth in 2010, when it said the economy would remain dependent on government life-support. India, which likewise weathered the crisis with growth of an estimated 6.1 % in 2009, could expect 7.3% growth in 2010 and a bit more in 2011 it said.
The winter session of Parliament on Thursday got off to a stormy start with an aggressive Opposition disrupting Lok Sabha proceedings on the issue of a `bitter' harvest of sugarcane in the wake of inadequate support price. However, Prime minister Manmohan Singh said the government will amend sugarcane pricing ordinance in farmers' interest. The government has agreed to change a new sugarcane pricing rule, Railways Minister Mamata Banerjee said after a meeting of senior government ministers on Friday, 20 November 2009.
Meanwhile, the bill to reform the insurance sector is unlikely to be cleared by the parliament's winter session, a finance ministry official said on Thursday. The government has set reform of the insurance sector as a priority for the winter parliament session that began on 19 November 2009. The bill, which was stalled in the last parliament, proposes raising the foreign investment limit in insurance companies from 26 % to 49%. The government also wants to open up the pension sector to private and foreign firms and give equal voting rights to foreigners in private-sector banks, which are currently limited to 10% irrespective of their actual holding.
Meanwhile, the initial public offer of Cox and Kings, a global tour operator, was subscribed 6.22 times at 16:00 IST, on the last day of the bidding for the issue on Friday, 20 November 2009.
European markets which were firm when trading was on in India, reversed gains after the Indian markets closed. The key benchmark indices in France, and UK were down by between 0.01% to 0.02%. Germany's DAX was up 0.08%.
Asian stocks were trading mixed on Friday after Merrill Lynch & Co. cut its outlook on the global semiconductor industry and commodities retreated. The key benchmark indices in China, Hong Kong, Japan, and Taiwan fell by between 0.37% to 0.99%. But some markets were in green. The key benchmark indices in South Korea, Indonesia and Singapore were up by between 0.01% to 0.75%.
Japan's deputy prime minister Naoto Kan Friday said the nation's economy is in a deflationary phase and that the government will convey its view to the central bank.
Bank of Japan Governor Masaaki Shirakawa said on Friday there is no big gap in the views of the central bank and the government that the country is experiencing sustained price falls.
Trading in US index futures indicated Dow could fall 37 points at the opening bell on Friday, 20 November 2009. US index futures were steady when trading was on in India.
Senior US Federal Reserve officials said on Thursday inflation is not an immediate threat as a weak economic recovery and a grim outlook for jobs keep price pressures in check. The sanguine nature of the central bankers' views on inflation reaffirmed investor expectations near-term rate hikes are not in the cards. Charles Plosser, head of the Federal Reserve Bank of Philadelphia and Richard Fisher, his counterpart at the Dallas Fed, said the US recovery was underway but noted risks to growth remain.
US markets lost ground on Thursday as semiconductors dragged tech shares lower after a brokerage's bearish view of the industry and doubts about the strength of the economic recovery cut the appetite for risk. The Dow plunged 93.87 points, or 0.9%, to 10,332.44. The S&P 500 index was down 14.90 points, or 1.3%, to 1,094.90, while the Nasdaq Composite index fell 36.32 points, or 1.7%, to 2,156.82.
The US economic news was mixed. Jobless claims were unchanged last week but the prior week was revised up by 3,000 claims. Continuing claims came in at 5.61 million. There was some disappointing news on the housing front - mortgage delinquencies rose to 9.64% of all loans outstanding in the third quarter and foreclosures jumped to 4.47% to a total of 14.41%, another new record.
Leading indicators rose 0.3% in October 2009, slightly lower than expected. And the Philadephia Fed branch said its gauge of regional manufacturing activity rose to 16.7 in November 2009 from 11.5 in October 2009, beating expectations.
The BSE 30-share Sensex rose 236.20 points or 1.41% to 17021.85. The Sensex fell 149.90 points at the day's low of 16,635.75 in afternoon trade. The Sensex rose 255.74 points at the day's high of 17041.79 at the fag end of the trading session
The S&P CNX Nifty rose 63.45 points or 1.27% to 5052.45. Nifty November 2009 futures were at 5,077.10, at a premium of 24.65 points as compared to spot closing of 5,052.45. Turnover in NSE's futures & options (F&O) segment surged to Rs 98,015.39 crore from Rs 79,048.32 crore on Thursday, 19 November 2009.
The market breadth, indicating the overall health of the market was positive. On BSE, 1451 shares advanced as compared with 1242 that declined. A total of 97 shares remained unchanged. The breadth moved alternatively between negative and positive zone throughout the day.
From the 30 share Sensex pack, 26 rose and rest fell.
BSE clocked a turnover of Rs 5371 crore, higher than Rs 5092.15 crore on Thursday, 19 November 2009.
From a recent low of 15,404.94 on 3 November 2009, the Sensex jumped 1,645.71 points or 10.68% in a short period of time, to 17,050.65 on 17 November 2009. From that high, the Sensex has lost 265 points or 1.55% in two trading sessions to 16785.65 on Thursday, 19 November 2009. The Sensex is up 7374.50 points or 76.44% in calendar year 2009, as on 20 November 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8861.45 points or 108.59% as on 20 November 2009.
Coming back to today's trade, the BSE Mid-Cap index rose 1.08% and the BSE Small-cap index rose 0.43%. Both the indices underperformed the Sensex.
The BSE Bankex (up 1.95%), the BSE Oil & Gas index (up 1.52%) outperformed the Sensex.
The BSE Consumer Durables index (down 1.35%), the BSE Power index (up 0.08%), the BSE Teck index (up 0.55%), the BSE Capital Goods index (up 0.67%), the BSE Auto index (up 0.73%), the BSE FMCG index (up 0.73%), the BSE PSU index (up 0.75%), the BSE Realty index (up 0.78%), the BSE IT index (up 0.87%), the BSE Healthcare index (up 0.96%), the BSE Metal index (up 1.37%), underperformed the Sensex..
Energy major Reliance Industries (RIL) rose 2.07% to Rs 2125.15. The stock came off the day's low of Rs 2051. Reliance Natural Resources (RNRL) told the Supreme Court on Thursday that Reliance Industries had the full marketing freedom for Krishna-Godavari gas and accused it of influencing oil ministry officials in getting the price hiked for state-run NTPC.
The company also sought to drive home the point that the government's contract with RIL was to share the production of gas from Krishna-Godavari basin with the option to take such a share either in cash or kind. The court is hearing the dispute over the supply of 28 million units of gas for 17 years at $2.34 per unit to Anil Ambani-led RNRL from the gas fields off the Andhra Pradesh coast, awarded to Mukesh Ambani's RIL. The price, tenure and quantity were based on a family re-organisation pact of 2005, but RIL subsequently said it could only sell the gas for $4.20 per unit, as this was the price, the company claimed, fixed by the government.
Meanwhile RIL plans an aggressive exploration campaign, investments in petrochemicals and overseas acquisitions as India's top company by market capitalisation prepares itself for the next phase of growth. The company will work towards attaining global scale for its conventional energy platform petrochemicals, refining and oil and gas exploration and invest in its new businesses such as retailing and alternative energy, chairman Mukesh Ambani said at the company's annual meeting of shareholders on 17 November 2009.
RIL has set 27 November 2009 as the record date for a liberal 1:1 bonus share issue.
Oil exploration stocks fell as crude oil declined on Thursday as the dollar strengthened. Crude oil for December delivery contract fell $2.12, or 2.7% to $77.46 on the New York Mercantile Exchange. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.
Cairn India fell 0.14%. The company on 5 November 2009 signed a pact with Reliance Industries for supply of crude oil.
India's second biggest state-run oil exploration firm by revenue Oil India fell 0.23%. But, India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) rose 0.55%. The petroleum ministry has reportedly proposed a 33% hike in the price of natural gas produced by ONGC and Oil India and gradually increase it to $4.20 per mmBtu set for gas from Reliance Industries' KG-D6 fields.
Shares of public sector oil marketing companies rose as lower crude oil prices will reduce under-recoveries on domestic sale of petrol, diesel, kerosene and LPG at controlled prices. BPCL, Indian Oil Corporation and HPCL rose by between 0.4% to 2.6%.
Oil Secretary R.S. Pandey said on Thursday the government has no immediate plan to raise fuel prices. Pandey said there is no proposal yet on raising fuel prices, adding that state-run oil marketing companies were likely to suffer a revenue loss of Rs 44,000 crore in the current financial year by selling fuel at government-set rates. Pandey said inter-ministerial consultations about raising the prices of gas sold under the administrative price mechanism were underway
IT stocks reversed early losses triggered by a US brokerage downgrade on health of the global chips industry. India's second largest software company by sales Infosys rose 0.75% to Rs 2427.50 even as its ADR fell 2.11% on Thursday. The stock came of the day's low of Rs 2382. Infosys BPO, the business processing outsourcing subsidiary of Infosys Technologies, last week, announced the signing of a definitive agreement to acquire all of the outstanding interests of McCamish Systems LLC, a premier business process solutions provider, based in Atlanta, Georgia in the United States.
The acquisition is expected to be completed later this year subject to the satisfaction of certain closing conditions. The upfront consideration for the deal is $38 million with up to an additional $20 million payable to the sellers if McCamish Systems achieves certain financial targets in the future. The announcement was made on 12 November 2009.
India's largest software company by sales Tata Consultancy Services (TCS) rose 2.02% to Rs 693.30. The stock came off the day's low of Rs 670.20. The company recently secured a 150 million pounds software implementation contract for 15 years from Cardiff city council, UK.
India's third largest software company by sales Wipro rose 0.7% to Rs 649.95. The stock came off the day's low of Rs 630.40. Wipro subsidiary Infocrossing signed a five-year deal with the US-based Cliffs Natural Resources Inc, an international mining and natural resources firm, to provide IT infrastructure services, the global software major said Thursday.
Wipro, sees robust deal pipeline on the back of improving IT demand worldwide, Suresh Vaswani, joint chief executive said on 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.
Banking shares reversed early losses. Hopes of consolidation among PSU banks boosted shares of state-run banks. Union Bank, Bank of Baroda and Punjab National Bank, Bank of India and Canara Bnank rose by between 1.7% to 4.15%.
As per reports, Union Bank, Bank of Baroda and Punjab National Bank are keen on acquiring Corporation Bank whereas Canara Bank and Punjab National have shown interest in acquiring Dena Bank. As per reports, chiefs of Punjab National Bank, Canara Bank, Union Bank of India, Bank of India and Bank of Baroda met Finance Ministry official on Wednesday, 18 November 2009, to discuss the pros and cons of consolidation among banks in India.
India's largest bank by net profit State Bank of India (SBI) rose 2.42% to Rs 2325.75. The stock came off the day's low of Rs 2242. 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 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.
India's second largest private sector bank by net profit HDFC Bank rose 2.09% to Rs 1755.50 even as its ADR fell 2.75% on Thursday. The stock came off the day's low of Rs 1710.10.
India's largest private sector bank by net profit ICICI Bank rose 1.33% to Rs 897.30 even as its ADR fell 4.51% on Thursday. The stock came off the day's low of Rs 859.The bank's net profit rose 2.6% to Rs 1040.13 crore on a 12.7% decline in total income to Rs 8480.73 crore in Q2 September 2009 over Q2 September 2008. The result was announced during trading hours on 30 October 2009.
India's largest dedicated home loan lender Housing Development Finance Corporation (HDFC) rose 2.58%. The lender announced on 13 November 2009 it has agreed to acquire approximately 41% in the fully diluted equity share capital of Credila Financial Services from DSP Merrill Lynch Capital.
Prime Minister Manmohan Singh said on 8 November 2009, financial reforms, such as building up a domestic bond market and expanding foreign investment in sectors like insurance, would be pushed forward.
Meanwhile, the Reserve Bank of India Deputy Governor Usha Thorat said on Monday 16 November 2009 the central bank will soon issue guidelines on provisioning for bad loans by banks
Banks and co-operatives have reportedly disbursed farm loans to the tune of Rs 1.38 lakh crore in the first half of 2009-10, meeting over 42% of the target set by the government for the whole financial year.
Metal stocks rose on gains in commodity prices on the London Metal Exchange on Friday. National Aluminum Company and Hindalco Industries rose by between 1.49% to 3.47%.
Steel Authority of India (Sail) rose 3.24%. The government said on Thursday it is considering a 20% stake sale in steel major Sail, proceeds of which would partly fund the company's Rs 70000 crore expansion projects.
India's largest steel maker by sales Tata Steel rose 2.66% after company said it issued $ 546.9 million in new convertible bonds in exchange for $ 493 million of securities as part of a plan to reduce costs and ease repayment obligations.
The company had said earlier this month the new foreign currency convertible bonds will have a yield-to-maturity of 4.5% and will mature in November 2014.
But, JSW Steel fell 0.16%. Japan's JFE Steel, the world's sixth-largest steelmaker, said on Thursday it will team up with JSW Steel on automotive steel production in India.
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 drug maker by sales Ranbaxy Laboratories rose 1.23% after the company received US Food & Drug Administration approval for Acetaminophen tablets in 650 miligram strengh for over the counter sales.
FMCG stocks rose on bargain hunting. Hindustan Unilever, ITC, Dabur India, Tata Tea rose by between 0.41% to 1.38%.
India's largest thermal power generator by sales National Thermal Power Corporation (NTPC) rose 0.8% after company said after market hours on Thursday that a joint venture agreement has been executed amongst NTPC, Power Finance Corporation, Power Grid Corporation of India and Rural Electrification Corporation for formation of a public limited company to carry out and promote the business of energy efficiency, energy conservation and climate change. In this joint venture company, all the four promoters shall contribute 25% equity each it said.
Among other power stocks, Torrent Power, Power Grid Corporation of India, GVK Power & Infrastructure, CESC rose by between 0.29% to 2.03%.
India's largest engineering and construction firm by sales Larsen & Toubro rose 1.16%. The company on Tuesday 17 November 2009 said Gilbarco Inc. has bought its petroleum dispensing pump business.
Among other capital goods stocks, ABB, Thermax, Punj Lloyd, Siemens rose by between 0.36% to 3.63%.
Rate sensitive realty shares rose on bargain hunting. Indiabulls Real Estate, Omaxe, Unitech, DLF rose by between 0.63% to 2.29%.
The RBI, late last month, raised the provisioning requirements for loans to commercial real estate from 0.4% to 1% at a regular monetary policy review. 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.
Rate sensitive auto stocks rose as low interest rates and attractive benefits offered by companies pushed up auto sales in October 2009.
India's largest commercial vehicle maker by sales Tata Motors rose 0.99%. Tata Motors has reportedly raised Rs 264 crore so far through the revised fixed deposit scheme which it launched in August this year. The company is authorised to raise Rs 1,300 crore from the revised scheme. Meanwhile, Jaguar Land Rover received as much as 170 million pounds ($286 million) as a five-year working capital facility from General Electric Co.'s GE Capital division, the lender said on 16 November 2009. Tata Motors the owner of Jaguar Land Rover, is hopeful of turning around the unprofitable luxury unit as it cuts costs to battle a slump in sales during the global recession.
India's largest tractor maker by sales Mahindra & Mahindra rose 2.47%. 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.
India's largest bike marker by sales Hero Honda Motors rose 0.64%. The company reported a marginal increase in October sales at 354,156 units as against 352,449 units in the same month last year
But, India's second largest bike marker by sales Bajaj Auto fell 0.17%. Carlos Ghosn, chief executive of French car maker Renault and Japan's Nissan Motor Co, said, last week, that 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 fell 0.26%. 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 11 November 2009. Sales of trucks and buses, a gauge of economic activity, rose 52% to 42,562 units in October 2009, the data showed.
UltraTech Cement, a unit of conglomerate Aditya Birla Group rose 3.89%. The company absorbed sister unit Samruddhi Cement, to form the country's biggest cement firm. The move, flagged in October 2009, was approved by the boards of both companies on Sunday. In October, the group said it will hive off the cement business of flagship firm Grasim Industries into unit Samruddhi in a cashless transaction and later merge it with group firm UltraTech. Samruddhi shareholders will receive four shares of UltraTech for every seven held in Samruddhi. UltraTech will also issue 14.95 crore new shares, boosting its capital to Rs 274 crore.
Among the other cement stocks, Ambuja Cements and ACC rose by between 1.22% to 4.55%.
India's largest mobile telecom services provider by sales Bharti Airtel fell 1.4% after the company reduced roaming rates by up to 60%. Bharti Airtel has slipped to third position in terms of monthly additions, data from an industry body showed. Bharti Airtel in October 2009 added about 27 lakh new users, lower than 29 lakh added by Vodafone Essar and over 38 lakh added by Tata Teleservices.
The company's chief Executive Manoj Kohli recently said that the company is confident that the country will proceed on schedule with 3G spectrum auctions in January 2010 with high hopes for the technology in the competitive market. The government held a pre-bidding conference on Monday in the run-up to third-generation (3G) spectrum auctions that have been twice delayed but are now scheduled to take place on 14 January 2009.
Bharti expects the current state of stiff competition to continue into 2010, as the government worked on new rules that may allow faster consolidation, Kohli said.
Among other telecom stocks, Reliance Communications and Idea Cellular rose by between 0.81% to 1.09%.
Cals Refineries clocked highest volume of 5.08 crore shares on BSE. Suzlon Energy (2.81 crore shares), Unitech (1.3 crore shares), Dena Bank (0.94 crore shares) and Mahndra Satyam (0.88 crore shares) were the other volume topers in that order.
Edelweiss Capital clocked the highest turnover of Rs 275.30 crore on BSE. Housing Development & Infrastructure (Rs 210.68 crore), Suzlon Energy (Rs 205.53 crore), JSW Steel (Rs 200 crore) and State Bank of India (Rs 183.81 crore) were the other turnover toppers in that order.
Copper drops for first time in five days
Prices drop as the dollar inches up
Copper prices ended lower for first time in five days on Thursday, 19 November, 2009 at Comex. Prices rose to its highest levels in fourteen months yesterday. But on Thursday, it dropped due to the dollar and economic data.
At USA, copper futures for March delivery ended lower by 2.95 cents (0.9%) to 3.106 a pound. Earlier during the week, on Monday, it had touched a high of $3.142.
On the London Metal Exchange, copper for delivery in three months ended lower by $85 (1.2%) at $6,795 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
In the currency market on Thursday, the dollar strengthen up against its previous days' position but continued to remain at its weak levels. The dollar index, which measures the strength of dollar against basket of six other currencies, rose by almost 0.2% paring majority of its earlier gains.
The Labor Department in US reported on Thursday, 19 November that the number of people filing initial claims for state unemployment benefits was flat at a seasonally adjusted 505,000 in the week ended 14 November. Initial claims are at the lowest level since early January, but they have hovered above 500,000 for 53 straight weeks, contributing to a 26-year high in the U.S. unemployment rate at 10.2%.
The Conference Board in US reported on Thursday, 19 November, 2009 that the index of leading economic indicators rose for the seventh consecutive month in October, showing that a recovery is "unfolding" in the U.S. economy. The leading indicators rose 0.3% in October after a 1% gain in September.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
At the MCX, copper for November delivery closed at Rs 317.3/Kg. The closing price was Rs 0.3/Kg (0.09%) higher than previous closing price. Prices rose to a high of Rs 319.9/ Kg and fell to a low of Rs 315.7/Kg during the day's trading.
Among other metals traded in the LME on Thursday, lead slid 0.3% to $2,397 a ton and zinc gained 1% to end at $2,269.5 a ton. Nickel gained 0.3% to end at $17,130. Aluminium was unchanged at $2,066 a ton.
Little change for precious metals
Prices manage a positive end as dollar pares most of its gains
Precious metal prices ended slightly higher on Thursday, 19 November, 2009. Prices rose as the dollar continued to stay weak despite paring earlier losses. Prices also rose riding on back of economic data.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Thursday, gold for December delivery ended at $1,141.9, higher by $0.70 (0.06%) an ounce on the New York Mercantile Exchange. Yesterday, during intra day trading, it hit a high of $1153.4. This was an all time high prices marked by the yellow metal. Last week, gold ended higher by 2%. Year to date, gold prices are higher by almost 30%.
On Thursday, December Comex silver futures ended higher by 4.5 cent (0.2%) $18.455 an ounce.
In the currency market on Thursday, the dollar continued to remain at its weak levels. The dollar index, which measures the strength of dollar against basket of six other currencies, rose by almost 0.2% paring majority of its earlier gains.
The Labor Department in US reported on Thursday, 19 November that the number of people filing initial claims for state unemployment benefits was flat at a seasonally adjusted 505,000 in the week ended 14 November. Initial claims are at the lowest level since early January, but they have hovered above 500,000 for 53 straight weeks, contributing to a 26-year high in the U.S. unemployment rate at 10.2%.
The Conference Board in US reported on Thursday, 19 November, 2009 that the index of leading economic indicators rose for the seventh consecutive month in October, showing that a recovery is "unfolding" in the U.S. economy. The leading indicators rose 0.3% in October after a 1% gain in September.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for December delivery closed higher by Rs 126 (0.73%) at Rs 17,231 per ten grams. Prices rose to a high of Rs 17,243 per 10 grams and fell to a low of Rs 17,085 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed Rs 85 (0.3%) higher at Rs 28,312/Kg. Prices opened at Rs 28,200/kg and rose to a high of Rs 28,436/Kg during the day's trading.
Crude ends lower for first time in four days
Price drop due to dollar and economic data
Crude prices fell for the first time in four days at Nymex on Thursday, 19 November, 2009. Prices registered losses due to the dollar and economic data.
On Thursday, crude-oil futures for light sweet crude for December delivery closed at $77.46/barrel (lower by $2.12 or 2.7%). Crude had gained more than 4% in the past three sessions before Thursday. Last week, crude ended lower by 1.4%.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 51% since then.
In the currency market on Thursday, the dollar continued to remain at its weak levels. The dollar index, which measures the strength of dollar against basket of six other currencies, rose by almost 0.2% paring majority of its earlier gains.
The Labor Department in US reported on Thursday, 19 November that the number of people filing initial claims for state unemployment benefits was flat at a seasonally adjusted 505,000 in the week ended 14 November. Initial claims are at the lowest level since early January, but they have hovered above 500,000 for 53 straight weeks, contributing to a 26-year high in the U.S. unemployment rate at 10.2%.
The Conference Board in US reported on Thursday, 19 November, 2009 that the index of leading economic indicators rose for the seventh consecutive month in October, showing that a recovery is "unfolding" in the U.S. economy. The leading indicators rose 0.3% in October after a 1% gain in September.
the EIA reported yesterday that crude inventories fell 900,000 barrels in the week ended 13 November, 2009 against an expectation of a modest increase. The weekly EIA data also showed U.S. crude imports fell 0.9% to 8.58 million barrels a day, and total petroleum demand rose 1% to 18.5 million barrels a day. Gasoline demand rose nearly 2% to 9.02 million barrels a day, returning to the level seen at the end of last month.
The report also detailed a decline of 1.7 million barrels in gasoline stockpiles and a drop of 300,000 barrels in distillates, which include heating oil and diesel.
Among other energy products, December gasoline lost 2.1% to $1.9695 a gallon, and December heating oil was down 2.5% at $1.9964 a gallon
Also on Thursday, natural gas for December delivery rose 2% to $4.342 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for December delivery closed lower by Rs 37 (1%) at Rs 3,649/barrel. Natural gas for November delivery closed higher by Rs 1 (0.5%) at Rs 200/mmbtu.
Nifty November 2009 futures below 5,000
Turnover rises
Nifty November 2009 futures were at 4,984, at a discount of 5 points as compared to spot closing of 4,989. Turnover in NSE's futures & options (F&O) segment jumped to Rs 79,048.32 crore from Rs 67,322.64 crore on Wednesday, 18 November 2009.
State Bank of India (SBI) November 2009 futures were at discount at 2,275 compared to the spot closing of 2,280.
ICICI Bank November 2009 futures were at discount at 886.50 compared to the spot closing of 890.
Suzlon Energy November 2009 futures were near spot price at 74.80 compared to the spot closing of 74.90.
In the cash market, the S&P CNX Nifty lost 65.70 points or 1.30% at 4,989.
Market may extend last two days fall on weak global cues
The market may extend last two days fall tracking weak Asian stocks and decline in US stocks overnight. However, the survey showing jump in business confidence in India and Organisation for Economic Co-operation and Development's upward revision in global growth forecast for 2010 may cap fall.
Equities may remain volatile over the next few days as traders rollover positions in the derivative segment from November 2009 series to December 2009 series ahead of the expiry of the near month November 2009 contracts on 26 November 2009.
The business confidence in India has reportedly surpassed the level that prevailed before the financial crisis seized economic growth prospects, according to the latest NCAER (National Council of Applied Economic Research)-MasterCard Worldwide Index of Business Confidence. The Business Confidence Index (BCI) reported a sharp rise of 21 %, with a rating of 143.7 points in October 2009, compared with 118.6 points in July 2009. BCI ratings in April 2009 were at their lowest, at 81.6 points, after the global financial crisis hit world economies.
Asia is leading the global economy out of the deepest downturn in decades but the recovery will be marred by high unemployment and huge government debt across the industrialised countries, the Organisation for Economic Co-operation and Development (OECD) said on Thursday.
Central banks and governments in major Western economies should prepare for a gradual upwards shift in ultra-low interest rates and for fiscal consolidation once recovery is stronger, but they will only need to move in late 2010 at the earliest given that inflation is so low, it said in its Economic Outlook. The Paris-based Organisation for Economic Co-operation and Development raised its global growth forecast for 2010 to 3.4 % from the 2.3 % it was predicting as recently as June, after an estimated contraction of 1.7 % in 2009.
In the twice-yearly report, the OECD lowered its estimates of the scale of this year's recession and substantially raised most of its forecasts for growth in 2010, when it said the economy would remain dependent on government life-support. India, which likewise weathered the crisis with growth of an estimated 6.1 % in 2009, could expect 7.3 % growth in 2010 and a bit more in 2011 it said,
Closer home, the winter session of Parliament on Thursday got off to a stormy start with an aggressive Opposition disrupting Lok Sabha proceedings on the issue of a `bitter' harvest of sugarcane in the wake of inadequate support price. However,Prime minister Manmohan Singh said government will amend sugarcane pricing ordinance in farmers' interest.
Meanwhile, the bill to reform the insurance sector is unlikely to be cleared by the parliament's winter session, a finance ministry official said on Thursday. The government has set reform of the insurance sector as a priority for the winter parliament session that began on 19 November 2009. The bill, which was stalled in the last parliament, proposes raising the foreign investment limit in insurance companies from 26 % to 49%. The government also wants to open up the pension sector to private and foreign firms and give equal voting rights to foreigners in private-sector banks, which are currently limited to 10% irrespective of their actual holding.
The initial public offer of Cox and Kings, a global tour operator, was subscribed 1.39 times on the second day of the bidding for the issue on Thursday, 19 November 2009.
Suzlon Energy, the world's third-largest maker of wind turbines, will be in action after company said late Thursday that it has sold a 35% stake in a subsidiary, Hansen Transmissions, for $370 million (or about Rs 1,720 crore at current exchange rates), as part of its efforts to reduce debt.
Asian stocks fell on Thursday after Merrill Lynch & Co. cut its outlook on the global semiconductor industry and commodities retreated. The key benchmark indices in China, HongKong, Japan, South Korea, Singapore and Taiwan fell by between 0.1% to 1.32%.
U.S. Markets lost ground on Thursday as semiconductors dragged tech shares lower after a brokerage's bearish view of the industry and doubts about the strength of the economic recovery cut the appetite for risk. The Dow plunged 93.87 points, or 0.9%, to 10,332.44. The S&P 500 index was down 14.90 points, or 1.3%, to 1,094.90, while the Nasdaq Composite index fell 36.32 points, or 1.7%, to 2,156.82.
The US economic news was mixed. Jobless claims were unchanged last week but the prior week was revised up by 3,000 claims. Continuing claims came in at 5.61 million. Some disappointing news on the housing front-mortgage delinquencies rose to 9.64% of all loans outstanding in the third quarter and foreclosures jumped to 4.47% to a total of 14.41%, another new record.
Leading indicators rose 0.3% in October 2009, slightly lower than expected. And the Philadephia Fed branch said its gauge of regional manufacturing activity rose to 16.7 in November 2009 from 11.5 in October 2009, beating expectations.
Volatility ruled the roost as stocks lost ground on Thursday with the sentiment hit by Brazil's latest move to curb capital inflows. Decline in European shares and lower US index futures also weighed on sentiment. The BSE 30-share Sensex fell 213.13 points or 1.25% to 16785.65 on that day.
As per provisional data, foreign funds on 19 November 2009, sold equities worth a net Rs 459.18 crore. Domestic funds bought stocks worth a net Rs 116.79 crore.
Indiabulls Real Estate
We recommend a sell in the stock of Indiabulls Real Estate from a short-term perspective. It is evident from the charts that the stock had been on an intermediate-term uptrend from March low Rs 83 until the October high of Rs 298. However, after encountering long-term resistance around Rs 300, the stock reversed direction triggered by negative divergence in the daily moving average convergence and divergence (MACD) indicator. The stock’s intermediate-term uptrend line was conclusively penetrated in late October and it continued to decline. Thereafter, the stock reinforced its short-term downtrend by breaching 21 as well as 50-day moving averages and is currently trading well below them. The short-term down trendline of the stock is intact. The daily relative strength index has entered into the bearish zone and daily MACD is featuring in negative territory. We are bearish on the stock from a short-term perspective. We expect it to decline further until it hits our price target of Rs 200 in the upcoming trading sessions. Trader with short-term horizon can sell the stock, while maintaining a stop-loss at Rs 235.
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