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Wednesday, December 02, 2009
BSE Bulk Deals to Watch - Dec 2 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
2/12/2009 524412 Aarey Drugs UTSAV NITINBHAI SHAH B 25000 45.45
2/12/2009 530901 ACIL Cot Inds SREE RAM PLYWOOD MANUFACTURING COMPANY PRIVATE LIMITED B 130000 31.88
2/12/2009 530901 ACIL Cot Inds SHREE BAHUBALI INTERNATIONAL LTD B 150000 31.70
2/12/2009 530901 ACIL Cot Inds MAHENDRA N SURANA HUF S 65900 31.70
2/12/2009 530901 ACIL Cot Inds BEENA R. SURANA S 125000 31.82
2/12/2009 530901 ACIL Cot Inds RAJENDRA NIHALCHAND SURANA S 135000 31.81
2/12/2009 530621 Akar Tools SUMAN SARAOGI B 35000 37.68
2/12/2009 530621 Akar Tools SUMANKUMAR SARAOGI B 35005 36.06
2/12/2009 530621 Akar Tools SUMAN SARAOGI S 35000 36.06
2/12/2009 530621 Akar Tools SUMANKUMAR SARAOGI S 35005 37.68
2/12/2009 532664 Amar Remedies SHIVIKA COMMUNICATION PRIVATE LIMITED B 196079 44.23
2/12/2009 532664 Amar Remedies SHIVIKA COMMUNICATION PRIVATE LIMITED S 196079 44.35
2/12/2009 533138 ASTEC LIFE SETU SECURITIES PVT LTD B 95993 89.56
2/12/2009 533138 ASTEC LIFE TRANSGLOBAL SECURITIES LTD. B 153132 89.49
2/12/2009 533138 ASTEC LIFE AANGI SHARES & SERVICES PVT. LTD. B 152377 87.35
2/12/2009 533138 ASTEC LIFE MARWADI SHARES AND FINANCE LTD. B 190270 89.60
2/12/2009 533138 ASTEC LIFE OPG SECURITIES P LTD B 381742 90.12
2/12/2009 533138 ASTEC LIFE Naman Securities & Finance Pvt. Ltd. B 89825 89.44
2/12/2009 533138 ASTEC LIFE TRANSGLOBAL SECURITIES LTD. S 153132 89.37
2/12/2009 533138 ASTEC LIFE AANGI SHARES & SERVICES PVT. LTD. S 202377 87.50
2/12/2009 533138 ASTEC LIFE MARWADI SHARES AND FINANCE LTD. S 190270 89.65
2/12/2009 533138 ASTEC LIFE OPG SECURITIES P LTD S 381742 90.19
2/12/2009 533138 ASTEC LIFE IDBI LTD. S 110000 86.16
2/12/2009 533138 ASTEC LIFE TAIB SEC MAURITIUS LTD S 304795 88.42
2/12/2009 531591 Bampsl Sec PRAKASHCHAND GUPTA B 951240 0.83
2/12/2009 531591 Bampsl Sec OM PARKASH GUPTA B 600001 0.81
2/12/2009 531591 Bampsl Sec NARESH GUPTA B 387453 0.81
2/12/2009 531591 Bampsl Sec JMP SECURITIES PVT LTD B 750000 0.81
2/12/2009 531591 Bampsl Sec SATISH KUMAR GUPTA B 700000 0.81
2/12/2009 531591 Bampsl Sec SUNDERDASS AGARWAL B 600000 0.83
2/12/2009 531591 Bampsl Sec GIRRAJ PRASAD GUPTA B 400000 0.81
2/12/2009 531591 Bampsl Sec KAUSHALYA GARG S 1420801 0.83
2/12/2009 531591 Bampsl Sec PRAKASHCHAND GUPTA S 865177 0.81
2/12/2009 531591 Bampsl Sec JMP SECURITIES PVT LTD S 450000 0.81
2/12/2009 531591 Bampsl Sec SATISH KUMAR GUPTA S 700000 0.81
2/12/2009 531591 Bampsl Sec VIJAY KUMAR GOYAL S 800000 0.81
2/12/2009 590059 Bihar Tubes SUDHA AGARWAL B 105493 65.92
2/12/2009 590059 Bihar Tubes MANHARBHAI B GANDANI B 100000 66.05
2/12/2009 590059 Bihar Tubes PIPER SECURITIES PVT. LTD. B 1199250 66.29
2/12/2009 590059 Bihar Tubes ELARA CAPITAL PLC (DR) S 1591200 66.14
2/12/2009 590059 Bihar Tubes MAVI INVESTMENT FUND LIMITED - GDR S 500000 66.52
2/12/2009 590059 Bihar Tubes MANHARBHAI B GANDANI S 100000 66.93
2/12/2009 526027 Cubex Tubings MANOJ DUA B 38000 16.11
2/12/2009 526027 Cubex Tubings SURENDRA KUMAR BAFNA S 60000 16.10
2/12/2009 504240 Delton Cables SUMAN SARAOGI B 25000 59.55
2/12/2009 504240 Delton Cables SUMANKUMAR SARAOGI B 25000 57.60
2/12/2009 504240 Delton Cables SUMAN SARAOGI S 25000 57.60
2/12/2009 504240 Delton Cables SUMANKUMAR SARAOGI S 25000 59.55
2/12/2009 532121 Dena Bank OPENHIMER FUNDS INC A/C OPPENHEIMER INTL SMALL COMPANY FUND B 1450000 85.74
2/12/2009 531439 Goldstone Tech KISHORBHAI BALUBHAI CHAUHAN B 100000 26.00
2/12/2009 531439 Goldstone Tech HEMANT MADHUSUDAN SHETH S 100000 26.00
2/12/2009 532786 Great Offshore MARWADI SHARES AND FINANCE LTD. B 307660 534.72
2/12/2009 532786 Great Offshore CARMONA INVESTMENT & FINANCE PVT. LTD. B 250000 570.00
2/12/2009 532786 Great Offshore ECL FINANCE LIMITED B 1078000 575.00
2/12/2009 532786 Great Offshore EDELWEISS FINANCE & INVESTMENTS LIMITED B 1000000 580.00
2/12/2009 532786 Great Offshore MARWADI SHARES AND FINANCE LTD. S 307660 535.84
2/12/2009 532786 Great Offshore ABG SHIPYARD LTD S 2539000 574.89
2/12/2009 590043 Harita Seat Anusha Investments Limited S 26000 62.77
2/12/2009 522285 Jayaswal Neco SETU SECURITIES PVT LTD B 553899 27.74
2/12/2009 522285 Jayaswal Neco ANGEL INFIN PRIVATE LIMITED B 671523 27.66
2/12/2009 522285 Jayaswal Neco JMP SECURITIES PVT LTD B 999887 27.42
2/12/2009 522285 Jayaswal Neco SETU SECURITIES PVT LTD S 538137 27.72
2/12/2009 522285 Jayaswal Neco ANGEL INFIN PRIVATE LIMITED S 570521 27.66
2/12/2009 522285 Jayaswal Neco JMP SECURITIES PVT LTD S 922140 27.40
2/12/2009 533103 JINDALCOTEX OPG SECURITIES P LTD B 173474 109.49
2/12/2009 533103 JINDALCOTEX OPG SECURITIES P LTD S 173474 109.44
2/12/2009 590003 Karur Vysya Bank INDIA MAX INVESTMENT FUND LTD B 230000 377.47
2/12/2009 590003 Karur Vysya Bank SUBBIAH SUBRAMANIAN S 230000 377.40
2/12/2009 530255 KAY Power KAUSHALYA GARG B 81100 9.13
2/12/2009 532967 Kiri Dyes OPG SECURITIES P LTD B 89319 560.30
2/12/2009 532967 Kiri Dyes OPG SECURITIES P LTD S 89319 560.73
2/12/2009 532341 Logix Micro INDIA INVESTMENT PARTNERS LIMITED A/C ICG Q LIMITED S 55106 50.30
2/12/2009 516007 Mangalam Timb HIRAL MANISH SHAH B 120111 28.28
2/12/2009 516007 Mangalam Timb KHANDWALA INTEGRATED FIN SERVICES PVT LTD S 93000 28.25
2/12/2009 516007 Mangalam Timb AMAM SHREYANS SHAH S 95000 28.25
2/12/2009 523704 Mastek OPG SECURITIES P LTD B 208185 413.62
2/12/2009 523704 Mastek OPG SECURITIES P LTD S 208185 414.51
2/12/2009 511688 Mathew Easow RUPAL SAMDANI S 20355 18.60
2/12/2009 521030 Nakoda Textile DHIRAJLAL V SANGHVI HUF S 86603 80.35
2/12/2009 532986 Niraj Cement KAUSHIK S SHAH S 73256 49.31
2/12/2009 570002 PANTALBNDVR CANARA ROBECO MUTUAL FUND A/C MULTICAP S 89294 250.04
2/12/2009 531769 PFL Infotech KAVITA KHAITAN B 50000 14.43
2/12/2009 531769 PFL Infotech AMRIT ANSHU KHAITAN B 50000 14.43
2/12/2009 531769 PFL Infotech SARIKA SINGHANIA S 99000 14.43
2/12/2009 531769 PFL Infotech PRIME INVEST INFO INVEST LTD. S 90000 15.01
2/12/2009 524570 Poddar Pigm JUBLIANT ENTERPRISES PVT. LTD. S 80000 35.45
2/12/2009 531855 Prabhav Inds MANDIP SINGH GURDIP SINGH B 50000 36.30
2/12/2009 531855 Prabhav Inds KIRAN RAMANLAL JANI S 94800 35.78
2/12/2009 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA B 46697 25.72
2/12/2009 502587 Rama Pulp HITESH SHASHIKANT JHAVERI B 43505 25.90
2/12/2009 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA S 157958 25.86
2/12/2009 502587 Rama Pulp HITESH SHASHIKANT JHAVERI S 40502 25.90
2/12/2009 590077 Ranklin Sol MEDEPUDI NAGENDRA BABU B 26505 55.00
2/12/2009 590077 Ranklin Sol SATYANARAYANA VARAPRASAD GARIKIPATY S 33500 55.12
2/12/2009 500361 RAS Pro Lamipack GOURAV GUPTA B 317228 1.95
2/12/2009 500361 RAS Pro Lamipack GOURAV GUPTA S 317228 1.95
2/12/2009 530815 Refnol Resins VIJAY KUMAR JAIN S 19000 9.36
2/12/2009 511585 Regency Trust PURVI PIYUSH SHAH B 15000 12.29
2/12/2009 511585 Regency Trust SRINJANI KAJARIA S 29000 12.29
2/12/2009 530271 Rich Capital RAHUL DOSHI B 39851 113.63
2/12/2009 531099 Rubra Med NIRUPA GUPTA S 65000 21.31
2/12/2009 506172 Sampada Chem KOPRAN LABORATORIES LTD S 99100 44.75
2/12/2009 526544 Scanpoint Geomatics HITESH SHASHIKANT JHAVERI B 65757 43.20
2/12/2009 526544 Scanpoint Geomatics HITESH SHASHIKANT JHAVERI S 67977 43.45
2/12/2009 532956 Solectron EMS MANJULA JAYNTILAL JAIN S 100000 43.00
2/12/2009 531645 Southern Ispat VENTURE BROKING PVT. LTD B 105000 38.50
2/12/2009 531645 Southern Ispat DHARMESH MANHARLAL GANDANI B 75206 38.99
2/12/2009 526500 Sterling Green JAGDISH VISHWAKARMA B 45510 39.16
2/12/2009 526500 Sterling Green ANURAGBHAI DINESHCHANDRA AGARWAL S 75038 39.92
2/12/2009 526500 Sterling Green ANGEL INFIN PRIVATE LIMITED S 59298 40.90
2/12/2009 530419 Sumedha Fisc SAKET MERCANTILES PVT LTD B 40000 16.91
2/12/2009 530419 Sumedha Fisc SAAKET MERCANTILES PVT LTD S 40000 16.91
2/12/2009 526133 Supertex Inds PRAKASH KUMARDEVSHILAL SHETH B 565000 3.49
2/12/2009 526133 Supertex Inds RONAK ASHWIN CHOKSI B 825000 3.47
2/12/2009 526133 Supertex Inds RESHMA NAYAN SHAH S 544098 3.51
2/12/2009 526133 Supertex Inds AMRIT LAXMICHAND GANDHI S 707073 3.40
2/12/2009 500408 Tata Elxsi OPG SECURITIES P LTD B 216706 195.46
2/12/2009 500408 Tata Elxsi OPG SECURITIES P LTD S 216706 195.74
2/12/2009 533121 THINKSOFT TRANSGLOBAL SECURITIES LTD. B 75270 292.24
2/12/2009 533121 THINKSOFT MBL & Co. LTD. B 108737 292.75
2/12/2009 533121 THINKSOFT OPG SECURITIES P LTD B 184818 294.78
2/12/2009 533121 THINKSOFT HEMANSHU SHAH B 81528 294.11
2/12/2009 533121 THINKSOFT ELDORADO BIOTECH PVT LTD B 51000 300.02
2/12/2009 533121 THINKSOFT TRANSGLOBAL SECURITIES LTD. S 75270 290.96
2/12/2009 533121 THINKSOFT MBL & Co. LTD. S 108737 292.25
2/12/2009 533121 THINKSOFT OPG SECURITIES P LTD S 184818 294.89
2/12/2009 533121 THINKSOFT HEMANSHU SHAH S 81528 294.56
2/12/2009 526945 Tyroon Tea IFCI LIMITED S 27771 35.25
2/12/2009 530459 Valson Inds MALKA NANDLAL MUTREJA S 23405 79.09
2/12/2009 532338 Valuemart Info VENATESH R S 200000 2.23
2/12/2009 530109 Vantage Corp NIRMALA PRAVIN GALA B 16300 11.71
2/12/2009 530109 Vantage Corp RAKSHA CHATRABHUJ VADHAIYA S 20000 11.67
NSE Bulk Deals to Watch - Dec 2 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
02-DEC-2009,AMAR,Amar Remedies Limited,SHIVIKA COMMUNICATION PRIVATE LIMITED,BUY,153152,44.56,-
02-DEC-2009,APTECHT,Aptech Limited,MBL & COMPANY LTD.,BUY,243223,186.08,-
02-DEC-2009,ASTEC,Astec LifeSciences Ltd,AANGI SHARES & SERVICES PVT. LTD,BUY,200109,87.23,-
02-DEC-2009,ASTEC,Astec LifeSciences Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,155433,90.19,-
02-DEC-2009,ASTEC,Astec LifeSciences Ltd,R.M. SHARE TRADING PVT LTD,BUY,86610,89.28,-
02-DEC-2009,ASTEC,Astec LifeSciences Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,133508,89.59,-
02-DEC-2009,DENABANK,Dena Bank,GENUINE STOCK BROKERS PVT LTD,BUY,1705307,87.77,-
02-DEC-2009,DENABANK,Dena Bank,OPENHEIMER FUND INC A/C OPENHIMER INTL-SMALL CO FUND,BUY,4550000,85.74,-
02-DEC-2009,GTOFFSHORE,Great Offshore Limited,MARWADI SHARES AND FINANCE LIMITED,BUY,241603,535.00,-
02-DEC-2009,IFGLREFRAC,IFGL REFRACTORIES LTD,RAVI SHANKARAN,BUY,192970,44.08,-
02-DEC-2009,JAYNECOIND,Jayaswal Neco Industr Ltd,RAHUL DOSHI,BUY,481888,27.63,-
02-DEC-2009,JAYNECOIND,Jayaswal Neco Industr Ltd,SETU SECURITIES LTD,BUY,644276,27.76,-
02-DEC-2009,SOMATEX,Soma Textiles & Ind. Ltd.,BHAVIN Y MEHTA,BUY,100017,12.75,-
02-DEC-2009,TATAELXSI,Tata Elxsi (India) Ltd,SHARAD SHAH,BUY,232791,196.95,-
02-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,BUY,51022,292.28,-
02-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,BUY,117810,292.04,-
02-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,BUY,108450,289.86,-
02-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,89834,291.78,-
02-DEC-2009,TIDEWATER,Tide Water Oil Co. (India,MADANLAL LIMITED,BUY,5030,4534.97,-
02-DEC-2009,AMAR,Amar Remedies Limited,SHIVIKA COMMUNICATION PRIVATE LIMITED,SELL,153152,44.47,-
02-DEC-2009,APTECHT,Aptech Limited,MBL & COMPANY LTD.,SELL,243223,186.55,-
02-DEC-2009,ASTEC,Astec LifeSciences Ltd,AANGI SHARES & SERVICES PVT. LTD,SELL,310276,88.20,-
02-DEC-2009,ASTEC,Astec LifeSciences Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,155433,90.29,-
02-DEC-2009,ASTEC,Astec LifeSciences Ltd,R.M. SHARE TRADING PVT LTD,SELL,86610,89.40,-
02-DEC-2009,ASTEC,Astec LifeSciences Ltd,TAIB SEC MAURITIUS LTD,SELL,350500,88.41,-
02-DEC-2009,ASTEC,Astec LifeSciences Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,133508,89.86,-
02-DEC-2009,AUSTRAL,Austral Coke & Projects L,ANARCON RESOURCES PRIVATE LIMITED,SELL,3617053,7.57,-
02-DEC-2009,DENABANK,Dena Bank,GENUINE STOCK BROKERS PVT LTD,SELL,1705307,87.79,-
02-DEC-2009,GTOFFSHORE,Great Offshore Limited,ELEVENTH LAND DEVELOPERS PRIVATE LIMITED,SELL,414000,561.10,-
02-DEC-2009,GTOFFSHORE,Great Offshore Limited,MARWADI SHARES AND FINANCE LIMITED,SELL,241603,534.94,-
02-DEC-2009,JAYNECOIND,Jayaswal Neco Industr Ltd,RAHUL DOSHI,SELL,406884,27.73,-
02-DEC-2009,JAYNECOIND,Jayaswal Neco Industr Ltd,SETU SECURITIES LTD,SELL,613892,27.74,-
02-DEC-2009,MANGTIMBER,Mangalam Timber Pro Ltd,AMAM SHREYANS SHAH,SELL,98009,28.25,-
02-DEC-2009,MANGTIMBER,Mangalam Timber Pro Ltd,RB POLYMERS LIMITED,SELL,94726,30.30,-
02-DEC-2009,PRETAILDVR,Class B shares (Series 1),CANARA ROBECO MUTUAL FUND A/C MULTICAP,SELL,89600,250.08,-
02-DEC-2009,SOMATEX,Soma Textiles & Ind. Ltd.,BHAVIN Y MEHTA,SELL,200017,12.75,-
02-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,SELL,51022,292.74,-
02-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,SELL,117810,292.94,-
02-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,SELL,108450,289.99,-
02-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,89830,293.13,-
02-DEC-2009,TIDEWATER,Tide Water Oil Co. (India,DECENT FINANCIAL SERVICES PVT LTD,SELL,5000,4535.00,-
Down marginally
Today's major news
Tata Motors’ total volumes grow by 65.5% year on year; the stock surges 4.14%.
Gammon India led joint venture bags contract from BWSB; the stock ends the day 1.70% higher.
Kiri Dyes may acquire DyStar; the stock jumps 4.91%.
Fedders Lloyd secures order worth Rs120 crore; the stock rises 4.99%.
Diamant Investment secures order from AIR Infraprojects; the stock closed the session 4.96% higher.
Click here for more stories
Post-market summary
Global signals
European stocks were flat as the financial stocks fell with the FTSE 100 marginally down by 0.19%.
All the major Asian indices closed in green and managed to hold on the morning gains, except BSE Sensex that bucked the trend and ended marginally lower. SGX Nifty ends 20 points lower.
US stock futures extend gains and trades 1.2% higher on Wednesday on the back of positive expectations on the upcoming economic data front.
Indian indices
After a positive start, the Sensex slid and lost steam as the European stocks traded marginally lower. The bellwether opened 28 points higher and soon touched the high of 17330. However it slipped from that level and remained choppy for the major part of the session. Before closing at 17170, the Sensex touched the low of 17142 and swung by 188 points during the day. Nifty closed 1 point higher at 5123.
Sensex sentiment
The market breadth, the number of advancing shares to declining ones, was positive as out of 2,871 stocks traded on the BSE, 1,518 stocks advanced, whereas 1,241 stocks declined. One hundred twelve stocks closed unchanged.
Sectoral & stock screening
On a listless day marked with bouts of action, six sector indices posted gains while seven indices registered losses. BSE Realty that surged 1.87% and BSE Auto that was up by 1.33% were the only two sectors that posted tangible gains. The remaining 12 indices were either up or down marginally.
On stocks’ front, Indiabulls Financial surged the most, by 11.73%, followed by Shriram Transport that rose by 9.16% and Jet Airways that was up by 8.72%. Among losers, Areva T&D slid the most by 3.19%, followed by Oracle Finance that fell by 3.13% and HCL Technologies that shed 3.06%.
Viewing volumes
Realty major Unitech was the most actively traded scrip on the BSE with over over 1.79 crore shares changing hands to be followed by Suzlon Energy (1.20 crore shares), IFCI (1.08 crore shares), Ispat Industries (0.58 crore shares) and IDBI Bank (0.49 crore shares).
Asian markets elevates as Dubai debt crisis fears fade
Seoul, Shanghai, Sydney extended gains while Sensex finish lower
Stock markets in Asian region stretched their gains further on Wednesday, 2 December 2009, tracking cues from Wall Street where stocks rallied sharply overnight on some encouraging economic reports and easing worries over Dubai debts, Asian markets are mostly trading with notable gains.
On Wall Street, the major indices clawed back nearly all of their losses from the past week on Tuesday, as better-than-expected pending home sales and construction spending helped investors shrug off recovery doubts triggered by Dubai's debt troubles. The Dow Jones Industrial Average finished higher by 127 points, or 1.2%, to 10,472. The S&P 500 rose 13 points, or 1.2%, at 1109. The Nasdaq rose 31 points, or 1.5%, to 2176.
In the commodity market, crude oil traded near $78 a barrel in New York after an industry report showed U.S. supplies gained, raising concern that fuel demand in the biggest energy-consuming nation may be slow to recover.
Crude oil for January delivery traded at $78.10 a barrel, down 27 cents, in electronic trading on the New York Mercantile Exchange at 3:48 p.m. Singapore time. Yesterday, the contract rose $1.09, or 1.4 percent, to settle at $78.37.
Brent crude oil for January settlement was at $79.17 a barrel, down 18 cents, on the London-based ICE Futures Europe exchange at 3:39 p.m. Singapore time. The contract yesterday rose 88 cents, or 1.1%, to end the session at $79.35.
Gold surged to a record for a second day as investors stepped up purchases to protect their wealth against a slumping dollar. Spot gold climbed as much as 1.6 percent to $1,215.85 an ounce, and was at $1,214.39 at 1:52 p.m. in Singapore. Gold for February delivery in New York climbed to an all-time high of $1,216.90.
In the currency market, the US dollar recovered from the previous session's lows against major rivals in Asian trading, gaining against its Japanese counterpart as investors digested the Bank of Japan's newest easing steps.
The Japanese currency softened against major counterpart as sign of a recovering global economy increased traders appetite for risk, diminishing the value of lower-yielding currencies. The yen was quoted at 87.03 against greenback.
The Hong Kong dollar was trading at HK$ 7.7502 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 rose on Wednesday, aided by firm Asian stocks, record gold prices and easing fears over the impact of Dubai's credit crisis. At the local close, the dollar was trading at $US0.9270, up from Tuesday's close of $US0.91331.
In Wellington trade, the New Zealand dollar traded in a narrow range after rising in response to a rise in official Australian interest rates yesterday and higher commodity prices. At the local close, the NZ dollar was buying US72.74c from US72.82c in the morning, which was around its highest level in nearly a week. It was US71.80c at 5pm yesterday.
The South Korean won closed at 1,154.0 won to the U.S dollar, up 6.1 won from Tuesday's close of 1,161.1.
The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.1430, 0.0560 up from Monday’s close of NT$32.1990.
In the equities, financial and resources stocks led gains in Asia as concern about Dubai's debt problems faded and gold prices rallied to a record. A 2009 high for the Dow Jones Industrial Average on Tuesday also encouraged buyers.
In Japan, shares market managed to finish higher extending winning streak for third day in row after fluctuating in and out of the boundary at least five times. Market participant elected to buy at dip, encouraged by positive offshore leads and firmer commodity prices. Investors also tracked the uptrend in other Asia-pacific bourses and higher European futures.
At the closing bell, the Nikkei 225 Stock Average index was at 9,608.94, spurted 36.74 points or 0.38% from its previous close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange gained 0.98 points, or 0.11%, to 858.74.
On the economic front, the Japan Automobile Dealers Association said new vehicle sales in Japan rose 36% in November from a year earlier, up for the fourth consecutive month, on the back of tax breaks and subsidies for the purchase of eco-friendly vehicles. Sales of new vehicles excluding mini vehicles in the reporting month totaled 293,410 units
The Bank of Japan said the monetary base in Japan was up 3.8%on year in November, standing at 92.2 trillion yen after the 4.4% annual increase in October. Current account balances were up 43.4% on year to 11.9 trillion yen after adding 43.8 percent in October.
The Bank of Japan decided at an extraordinary policy meeting Tuesday to inject about 10 trillion yen into the financial system, introducing a new emergency fund-supply operation to lower longer-term interest rates to fight deflation.
In Mainland China, share market followed their global peers higher, endured gains for third day in row on bolstered optimism over economic recovery in the United States and China. A rise in commodity prices boosted related stocks, while gold miners benefited after the spot gold rose above $1,200 an ounce.
The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, surged 34.39 points, or 1.06%, to 3,269.75, meanwhile the Shenzhen Component Index on the smaller Shenzhen Stock Exchange advanced 0.86% or 118.34 points, to 13,800.50. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, spurted 1.02%, to 3,597.33.
In Hong Kong, the stock market were buoyed by banks, properties, and commodity related stocks on tracking strong cues from offshore market and firmer finish of base metal prices in London on Tuesday. Overnight the Dow Jones Index scored triple digit gains, while European share markets posted their biggest one-day gain in four and a half months.
The Hang Seng Index spurted 176.42 points, or 0.8%, to 22,289.57, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, escalated 111.81 points, or 0.85%, to 13,341.17.
In Australia, the stocks extended winning streak for third consecutive day on tracking strong cues from offshore market and firmer finish of base metal prices in London on Tuesday. Overnight the Dow Jones Index rose 1.2% to a 14 month high, while European share markets posted their biggest one-day gain in four and a half months. At the closing bell, the benchmark S&P/ASX200 index spurted 43.4 points, or 0.92%, to 4,762.4, meanwhile the broader All Ordinaries surged 43.6 points, or 0.92%, to 4,776.7.
In New Zealand, benchmark index ended the trading day almost flat although in the positive territory. The share market registered the third consecutive decline in a row after rising by 1% yesterday in line with the surge witnessed in global markets. The surge in global stocks came on upbeat economic news from around the world and as fears eased that Dubai's debt woes could rekindle a credit crisis and choke improving economies. The NZX50 ended almost flat in the positive terrain at 0.09% or 2.85 points to 3149.45. The NZX 15 lost 0.09% or 5.07 points to close at 5722.25.
In South Korea, stocks finished higher as foreign investors snapped up shares on waning Dubai debt problem anxiety. The benchmark Korea Composite Stock Price Index (KOSPI) spiked 21.91 points to end at 1,591.63, gaining ground for a third-consecutive session after Dubai debt problems plunged the key index to the lowest level in four months on Friday.
In Singapore, stocks market rose on tracking cues from Wall Street overnight and firmer other Asian bourses, helped investors shrug off recovery doubts triggered by Dubai’s debt troubles. Commodity supplier outperformed in the market after the base metal prices in the London Metal Exchange Index climbed 1.9% yesterday and gold prices hit all time high above $1,200 an ounce. At the closing bell, the blue chip Straits Times Index was at 2,796.34, escalated 25.39 points or 0.92%.
In Taiwan, stock market advanced for the third straight session, led by real estate players on hopes of Greater China investment in the island's property market. Rally at Wall Street also sparked hopes of a sustainable recovery, as financials stocks rose after China said it hopes to start a currency clearing system with Taiwan soon. The benchmark Taiex share index extended its gains for the third straight session, by finishing higher by 28.39 points or 0.37% in a day, closing at 7677.62.
In India, key benchmark indices ended a choppy trading session lower as pivotals underwent correction after two straight sessions of gains. The BSE 30-share Sensex was down 28.36 points or 0.16% to 17,169.91. It gained 131.41 points at the day's high of 17,329.68 in early trade, its highest level since 20 October 2009. The Sensex lost 55.91 points at the day's low of 17,142.36 at the fag end of the trading session. The S&P CNX Nifty was up 1.25 points or 0.02% to 5123.25. Nifty hit a high of 5161.75 in early trade, its highest since 20 October 2009.
On the economic front, the World Bank has committed to increase its lending to India to about $7 billion this year from an average $2.3 billion in the previous four years, the finance ministry said in a statement. India has also sought early completion of the process of voice and quota reforms at the World Bank to increase the representation of emerging and developing countries, the ministry said.
Elsewhere, Malaysia's Kula Lumpur Composite index finished higher at 1271.15 while stock markets in Indonesia’s Jakarta Composite index gained 19.06 points ending the day higher at 2471.56.
In other regional market, European shares edged higher on Wednesday, tentatively building on sharp gains made in the previous session when worries about Dubai's debt woes receded. On a regional level, the U.K. FTSE 100 index edged up 0.1% or 5.98 points at 5,318, the German DAX index rose 0.1% or 4.18 points to 5,781 and the French CAC-40 index advanced 0.2% or 9.08 points to 3,785.
Sun Pharma, HDFC drift lower as market retraces from one-month high
Key benchmark indices saw divergent trend in what was a volatile trading session. The market retraced from a one-month high as profit booking emerged. European markets came off early highs. Earlier in the global day, the MSCI Asia Pacific Index hit a six-week high today after US stocks surged on Tuesday as worries over Dubai World's debt problems receded. The BSE 30-share Sensex was down 28.36 points or 0.16%, off 159.77 points from the day's high and up 27.55 points from the day's low. The Sensex had gained 566.26 points or 3.40% in two trading sessions from 16632.01 on 27 November 2009 to 17198.27 on 1 December 2009.
As per provisional data, foreign funds today, 2 December 2009, bought equities worth a net Rs 885.65 crore. Domestic funds offloaded stocks worth a net Rs 213.64 crore
The market surged in opening trade on firm global stocks. The Sensex and the S&P CNX Nifty struck their highest level in more than a month. The market pared gains after an initial surge. It regained strength in mid-morning trade. The market slipped into the negative zone in early afternoon trade. It regained positive zone later. The market regained positive zone after sliding to a fresh intraday low in early afternoon trade. But the intraday rebound proved short lived. The market hit fresh intraday low at the fag end of the trading session as European stocks came off highs.
Direct tax receipts for April-November 2009 period rose 3.71% from a year earlier at Rs 1.84 lakh crore, the finance ministry said in a statement on Wednesday. Growth in corporate tax was 3.17% to Rs 1.13 lakh crore in the first eight months of the current financial year ending March 2010, compared to Rs 1.10 lakh crore a year ago.
Personal income tax receipts increased 4.53% to Rs 70262 crore during April-November 2009 compared to Rs 67215 crore a year ago.
The World Bank has committed to increase its lending to India to about $7 billion this year from an average $2.3 billion in the previous four years, the finance ministry said in a statement. India has also sought early completion of the process of voice and quota reforms at the World Bank to increase the representation of emerging and developing countries, the ministry said.
In September, the World Bank approved $4.3 billion in loans for India to help finance infrastructure building and to shore up the capital of some state-run banks as the economy recovers from the global financial crisis. The loans are part of the bank's $14 billion lending for Asia's third-largest economy over three years through 2012.
Meanwhile, the government has reportedly drawn up 25 state firms for stake sales. These include Nuclear Power Corporation of India, National Bank for Agriculture and Rural Development, Exim Bank of India, Punjab & Sind Bank, Indian Railways Finance Corporation and National Housing Bank. Other companies planning initial public offers (IPO) include SBI Caps and SBI Fund Management, both subsidiaries of government-controlled State Bank of India, reports suggested.
Many of these IPOs could hit the market after the follow-on public offers of 5% each in NTPC and Rural Electrification Corporation, and a 10% stake sale in unlisted Satluj Jal Vidyut Nigam are completed in the current financial year, the report added.
On Tuesday, Finance Minister Pranab Mukherjee told parliament the government would sell up to 10% of its stake in the profit making state-run firms.
The market breadth was strong. Auto shares saw across the board rally following robust November sales figures with Tata Motors striking a fresh 52-week high of Rs 739.45 on BSE. Realty shares extended Tuesday's gains. Banking shares also logged gains on fresh buying. But FMCG shares dipped on selling pressure as investors shifted from the so-called defensive sector to high growth sectors.
European markets reversed early gains as bank shares declined. Key benchmark indices in UK, Germany and France were down by between 0.19% and 0.47%
Asian stocks rose for a third day today, 2 December 2009 following rise in commodity prices. Key benchmark indices in Hong Kong, Japan, South Korea, China, and Taiwan were up by between 0.37% to 1.40%.
The Reserve Bank of Australia on Tuesday raised its cash rate target by one quarter of a percentage point to 3.75%, further unwinding emergency policy settings no longer appropriate for the country's recovering economy.
Dubai World, the holding company at the heart of the Dubai crisis, on Monday announced a restructuring plan involving $26 billion in debt. However, the Dubai government said it was not responsible for Dubai World's debts, dealing a blow to creditors' assumptions that the Arab emirate would guarantee the government-controlled conglomerate's liabilities.
Dubai World, one of the emirate's main state holding companies, last week, asked for a delay on maturities until at least 30 May 2010. The company has total debts of $59 billion, including $3.52 billion of Islamic bonds due 14 December 2009 from its property unit Nakheel.
Trading in the US index futures showed the Dow could fall 13 points at the opening bell today, 2 December 2009
US markets kicked off December with a rally and posted solid gains, on the heels of a rebound in global share prices, helped by upbeat economic news and fading fears about the Dubai debt crisis. The Dow Jones Industrial Average surged 126.74 points or 1.23% to 10,471.58. The tech-heavy Nasdaq Composite index climbed 31.21 points or 1.46% to 2,175.81 and the broad-market Standard & Poor's 500 advanced 13.23 points or 1.21% to 1,108.86
In key economic news, the Institute for Supply Management said its manufacturing index expanded for a fourth consecutive month in November but at a weaker pace, falling to 53.6% from 55.7 in October.
Philadelphia Federal Reserve Bank President Charles Plosser on Tuesday said the US Federal Reserve must be prepared to raise interest rates if needed before the jobless rate has fallen to an acceptable level, or risk losing its inflation-fighting credibility. Plosser said he has become more confident in the sustainability of the US economic recovery even once government stimulus fades, and stressed the Fed must take a forward-looking approach.
Plosser, who will not have a vote on the Fed's policy-setting committee until 2011, said he expects the US economy to grow at around 3% over the next two years.
Back home, the government on Tuesday said it would not withdraw the fiscal stimulus, provided in the last one year to help the economy deal with the global slowdown, in the current financial year. Minister of State for Finance Namo Narain Meena told the Rajya Sabha that the fiscal measures announced by the government and the monetary measures by the Reserve Bank of India were aimed at mitigating the effects of the economic downturn.
Expressing concern over price rise, Finance Minister Pranab Mukherjee on Tuesday said it is mainly due to shortage of essential commodities like pulses, sugar and edible oil. He also suggested strengthening of the public distribution system to provide relief to the common man.
Replying to questions in the Rajya Sabha, Mukherji said the government is regularly monitoring the problem of hoarding and has been holding discussions with state governments on measures to curb it. For checking price rise, Mukherjee said the government has taken measures like reducing import duties on wheat, pulses, maize and raw sugar and banned export of non-Basmati rice.
Exports fell 6.6% to $13.19 billion in October 2009 over October 2008, their 13th straight monthly fall, the government said on Tuesday. Imports dropped 15% from a year earlier to $22 billion. The trade deficit shrunk to $8.8 billion in October 2009 from $11.74 billion a year earlier.
Exports for April-October, the first seven months of the 2009-10 fiscal year, were down 26% at $91.05 billion from the same period in the previous year.
C. Rangarajan, chairman of the prime minister's Economic Advisory Council on Tuesday said the robust growth of the economy in July-September indicated it could expand at around 7% in 2009-10. The latest numbers do indicate that industry and services are growing very strongly, Rangarajan said adding that this could help offset to a very large extent the impact of the decline in agricultural production.
Mukherjee told parliament on Tuesday that the current trend in inflation in India is a result of a shortage of food items and not due to a demand-push factor. The food articles index rose an annual 15.6% as at 14 November 2009, up from the previous week's 14.6% rise. Weak monsoon and floods in parts of the country have hurt farm output and pushed up food prices. The government is keeping a close watch on futures trading in commodities, Mukherjee said
The finance minister said buoyancy in government's revenue seen earlier may not be there till 2011/12. He said the government will time stake sale in state-run firms so as to get maximum value. He added that there is no plan for a strategic stake sale in state-run firms. The government, last month, decided to cap its holdings in state-run firms at 90% and said it would sell off shares in the firms where this limit was exceeded.
India's manufacturing activity expanded for the eighth straight month in November 2009 but at its weakest pace since March 2009 due to a slowdown in growth of output, new business and employment, a survey showed on Tuesday. The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 companies, fell to 53 in November 2009 from 54.5 in October 2009. A reading above 50 means activity expanded during the month.
Government data released on Monday showed the gross domestic product (GDP) grew by 7.9% in Q2 September 2009, from 7.1% in the previous year, shattering forecasts as stimulus measures boosted demand and manufacturing activity surged. The economy had registered a 6.1% growth in the first quarter.
Reacting to the GDP figures Montek Singh Ahluwalia, Deputy Chairman, Planning Commission said economic growth forecast for the year to March 2010 may have to be revised upwards as data released on Monday showed a faster expansion in September quarter. He added that there was no serious concern on inflation as of now and conventional monetary policy was unlikely to be effective in curbing food price rise.
Pranab Mukherjee on Monday said he expects the economy to grow around 7% in the fiscal year ending March 2010. Earlier, the finance minister said that Dubai's debt crisis would not affect India much, but the government is keeping a close watch and will act to prevent any fallout.
Meanwhile, after witnessing substantial redemption and erosion in assets under management (AUM), the mutual funds industry seems to have got its cheer back. The AUM of 22 fund houses, out of 39, have seen an increase of 7% in the overall average in November over the previous month of the same year.
The BSE 30-share Sensex was down 28.36 points or 0.16% to 17,169.91. The Sensex opened 28.22 points higher at 17,226.49. It gained 131.41 points at the day's high of 17,329.68 in early trade, its highest level since 20 October 2009. The Sensex lost 55.91 points at the day's low of 17,142.36 at the fag end of the trading session.
The S&P CNX Nifty was up 1.25 points or 0.02% to 5123.25. Nifty hit a high of 5161.75 in early trade, its highest since 20 October 2009.
Nifty December 2009 futures were at 5,115.80, at a discount of 7.45 points as compared to the spot closing.
The market breadth, indicating the overall health of the market was positive. On BSE, 1551 shares advanced as compared with 1284 that declined. A total of 99 shares remained unchanged.
Turnover in NSE's futures & options (F&O) was Rs 56,715.28 crore, lower than Rs 60,656.98 crore on Tuesday, 1 December 2009. The total turnover on BSE amounted to Rs 5703 crore as compared with Rs 5050 crore on Tuesday
A deluge of global liquidity has boosted stocks across the globe this year. Governments and central banks around the world have injected trillions of dollars in the past one year to pull the world out of a most severe recession since the 1930s Great Depression. The Sensex is up 7522.60 points or 77.97% in calendar year 2009, as on 2 December 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 9009.51 points or 110.40% as on 2 December 2009.
Coming back to today's trade, the BSE Mid-Cap index rose 0.90% and the BSE Small-cap index gained 0.87%. Both these indices outperformed the Sensex.
Sectoral indices on BSE displayed mixed trend. The BSE Metal index (down 0.08%), the BSE Healthcare index (up 0.14%), the BSE Auto index (up 1.33%), the BSE Oil & Gas index (up 0.03%), the BSE Bankex (up 0.86%), the BSE PSU index (up 0.13%), the BSE Realty index (up 1.87%), outperformed the Sensex.
The BSE FMCG index (down 0.54%), the BSE Power index (down 0.56%), the BSE Capital Goods index (down 0.36%), the BSE Consumer Durables index (down 0.34%), the BSE Teck index (down 0.27%), the BSE IT index (down 0.28%), underperformed the Sensex.
Among the 30-member Sensex pack, 20 declined while the rest gained.
Auto stocks advanced following robust monthly sales figures for November 2009. India's top truck maker by sales Tata Motors jumped 3.89% to Rs 728 after total sales zoomed 65.49% to 54,108 units in November 2009 over November 2008. The stock struck a fresh 52-week high of Rs 739.45 in intra-day trade today. It was the top gainer from the Sensex pack.
Tata Motors' total passenger vehicle sales in the domestic market grew by 44.52% at 20,706 units last month, against 14,327 units in the same month last year, the company said in a statement released after market hours on Tuesday. Exports jumped by 86.64% at 3,994 units, compared with 2,140 units in the same month last year, it added.
India's largest small car maker by sales Maruti Suzuki India rose 1.12% after total vehicle sales spurted 66.60% to 87,807 units in November 2009 over November 2008. The announcement was made during trading hours on Tuesday. Domestic sales spurted 60.10% to 76,359 units, while exports surged 128.60% to 11,448 untis in November 2009 over November 2008.
However, India's top tractor marker by sales Mahindra & Mahindra (M&M) slipped 1.11% on profit booking. The stock surged 4.94% on Tuesday after domestic auto sales soared 105.1% to 21,387 units in November 2009 over November 2008. M&M sold a total of 22,587 vehicles (domestic plus exports) in November 2009 as against 11,515 vehicles sold in November 2008.
India's second largest bike maker by sales Bajaj Auto shot up 2.90% after the company said total vehicle sales rose 73% to 2.76 lakh units in November 2009 over November 2008. Motorcycles sales jumped 84% to 2.42 lakh units.
Rally in auto stocks spilled over auto ancillary stocks as well as their fortunes are tied with the performance of the auto sector, which reported strong vehicle sales growth in November 2009. Amtek Auto (up 6.29%), Sona Koyo Steering (up 5%), Exide Industries (up 3.78%), Munjal Auto (up 16.10%), Bosch (up 0.30%), and Automotive Axles (up 5%), rose.
Banking shares gained on fresh buying. India's second largest private sector bank by net profit HDFC Bank rose 1.17% after its ADR rose 1.53% on Tuesday. India's largest private sector bank by net profit ICICI Bank settled almost unchanged at Rs 887. It struck a day's high of Rs 916.50 following a 2.69% rise in its American depository receipt on Tuesday.
India's largest bank by net profit and branch network State Bank of India gained 0.47%. Reports on Monday indicated the bank has invited bids for sale of 1% stake in National Stock Exchange of India (NSE) as well as 5.91% stake in Multi Commodity Exchange (MCX).
India's largest mortgage lender by total income Housing Development Finance Corporation (HDFC) lost 1.75% to Rs 2752.90 on investor worry a dual interest rate scheme on home loans introduced by the company would hit margins. After market hours on Tuesday, the firm announced a dual-rate loan scheme under which a borrower will be charged a fixed rate up to March 2012 and a floating rate thereafter. For a 20-year loan of Rs 30 lakh, a borrower will pay a fixed rate of 8.25% up to March 2012 and then a floating rate that's 500 basis points below the prime lending rate (PLR) - the institution's benchmark rate. Currently, the PLR is 13.75%.
India's largest private sector firm by market capitialisation Reliance Industries (RIL) slipped 0.17% to Rs 1096.40. The stock was volatile. It gyrated between Rs 1118 and Rs 1080 in the day.
Anil Ambani's Reliance Natural Resources (RNRL) on Tuesday told the Supreme Court that the government has no role to play in the issue of supply of gas from the Krishna-Godavari basin by Reliance Industries (RIL) to it. RNRL's claim on supply of KG gas is based on the state run NTPC draft and till date there is no mention that supply of gas to NTPC by RIL requires government's approval, it said. India's largest power generation firm by capacity NTPC fell 0.38%.
India's largest oil exploration firm by market capitalisation Oil and Natural Gas Corporation (ONGC) was down 1.07%. As per reports, the company's unit has signed agreements to pick up stake in a giant gas field and an LNG plant in Iran.
Cement stocks saw mixed trend. India's largest cement producer by capacity ACC fell 1.44% after cement shipments fell 4.04% to 1.66 million tonnes in November 2009 from 1.73 tonnes in November 2008.
India's largest dam builder Jaiprakash Associates gained 0.20% after it posted 48.77% jump in its cement sales to 1.03 million tonnes in November 2008 over November 2008.
Aditya Birla Group's cement shipments rose 15.3% to 2.93 million tonnes in November 2009 over November 2008. Aditya Birla Group last month said it was combining its cement operations under group firm UltraTech Cement to make India's largest cement firm. UltraTech Cement fell 0.52%.
Shree Cement gained 0.43% after the company's cement shipments rose 15.28% to 7.09 lakh tonnes in November 2009 over November 2008.
India's largest copper producer Sterlite Industries lost 1.36%. As per reports the government could mop up close to Rs 3000 crore from the sale of its residual stake in Bharat Aluminium Company (Balco) to Sterlite Industries. Sterlite had bought 51% of Balco in March 2001 for Rs 552 crore from the government.
Other metal shares were mixed. The LMEX, a gauge of six metals traded on the London Metal Exchange, rose 1.93% to 3,220.10 on Tuesday, 1 December 2009.
India's largest private sector aluminium maker by sales Hindalco Industries rose 0.32%. However India's largest private sector steel maker by sales Tata Steel fell 1.16% on profit booking
Realty shares gained after brokerages gave their buy recommendation on front line shares. India's biggest developer by sales DLF jumped 3.02% to Rs 382 after a domestic brokerage firm rated the stock as buy with a price estimate of Rs 445.
Housing Development and Infrastructure gained 0.04% to Rs 340.25. A domestic broker rated it buy with a price estimate of Rs 436.
Indiabulls Real Estate surged 3.77% after a foreign brokerage raised its rating on the stock to overweight from underweight
Ansal Infrastructures (up 1.12%), Ackruti Realty (up 1.32%), Parsvnath Developers (up 1.92%), and Omaxe (up 0.16%), gained
Shares prices of three firms belonging to the Anil Ambani group saw mixed trend following reports of government probe into alleged violations of overseas borrowing rules.
India's second largest private sector power generation firm by net profit Reliance Infrastructure lost 1.90%. India's second largest cellular services provider by sales Reliance Communications also fell 1.19%. However Reliance Natural Resources rose 0.42%
India's largest pharma company by market capitalisation Sun Pharmaceuticals retraced sharply from day's high of Rs 1592 to settle 2.84% lower at Rs 1495.05. It was the top loser from the Sensex pack. The company has received the support of the US-based equity fund Templeton Asset Management in its year-long legal tussle to acquire Israeli drugmaker Taro Pharmaceuticals. Templeton chairman Mark Mobius was quoted by media as saying that the Supreme Court in Israel should pass a decision quickly so that Sun can take control of Taro. Templeton owns a 10% equity stake in Taro. The Sun Pharma stock had surged 6.07% on Tuesday.
FMCG shares underperformed the Sensex as investors shifted from the so-called defensive sector to high growth sectors.
India's largest FMCG company by sales Hindustan Unilever extended Tuesday's 2.3% slide and was down 0.97%. India's largest cigarette maker by sales ITC slipped 0.70%.
Godrej Consumer Products (down 2.49%), Procter & Gamble India (down 2.32%), Tata Tea (down 1.08%), Marico (down 0.29%), Dabur India (down 0.87%), slipped
IT pivotals showed mixed trend. India's largest software services exporter Tata Consultancy Services (TCS) fell 0.50%. India's third largest software services exporter Wipro slipped 0.13%. However India's second largest software services exporter Infosys Technologies rose 0.30% to Rs 2401.95, rebounding from day's low of Rs 2356.40.
The partially convertible rupee was trading at 46.25/26 per dollar, higher than 46.32 on Tuesday. A firm rupee negatively impacts operating profit margin of IT firms as the sector derives a lion's share of revenue from exports.
Tata Elxsi jumped 20% after the firm's managing director Madhukar Dev told the media that the company's revenue is expected to touch $300-$400 million from its global operations in three years.
Texmaco rose 0.12% after one of the promoter group companies revoked the entire shares which it had pledged earlier. The company made this announcement during trading hours today, 2 December 2009.
Fedders Lloyd Corporation jumped 5% after a consortium of the company received an order worth Rs 120 crore.
Great Offshore tumbled 5.97% on high volumes after ABG Shipyard, along with its unit, sold 30.78 lakh shares of Great Offshore, or about 8.27% of equity, through an open market sale. Post the transaction, ABG and its unit hold just 571 shares in Great Offshore.
ABG Shipyard jumped 10.76% while rival firm Bharati Shipyard spurted 10.21%. Bharati Shipyard raised its open offer price for Great Offshore to Rs 590 a share from Rs 560.
BPL soared 5% after the company signed a pact with the Chhattisgarh state government for commissioning a 300 megawatt coal-based thermal power station in the state. The company made this announcement during trading hours today, 2 December 2009.
Great Offshore was the top traded counter on BSE with turnover of Rs 286.01 crore followed by Unitech (Rs 161.04 crore), DLF (Rs 151.09 crore), Tata Steel (Rs 124.24 crore), and Tata Motors (Rs 121.09 crore).
Cals Refineries was the volume topper on BSE with volume of 2.17 crore shares followed by Unitech (1.79 crore shares), Suzlon Energy (1.20crore shares), Dena Bank (1.15 crore shares), and IFCI (1.08 crore shares).
Daily News Roundup - Dec 2 2009
ONGC signed agreements to pick up a stake in a giant gas field and an LNG plant in Iran, which also awarded the rights to develop a gas discovery made by it in the Persian Gulf two years ago. (BS)
ONGC Videsh and the Hinduja Group have each got 20% stake in Iran's South Pars-12 project. (BL)
Minister of State for Petroleum & Natural Gas said that 97% of ONGC's total gas production is APM and only 3% is non-APM gas. (BL)
Reliance Industries has stopped selling gasoline and gas oil to Iran since April. (FE)
GMR Group firm GMR Energy said it will invest Rs180bn in the next three years to add electricity generation capacity and become nearly 3,300 mw company from the little over 800 mw now. (ET)
German auto major Daimler has renewed efforts to build its commercial vehicle foray in India and is talking with at least two major Indian players - the TVS group and Bajaj Auto. (ET)
Nuclear Power Corporation of India said French power equipment maker Alstom will be the third partner and hold 33.3% stake in the proposed joint venture with BHEL. (ET)
FIPB has rejected a proposal from German firm EADS Deutschland GmbH and L&T for setting up a JV company for manufacturing, distribution and marketing of products pertaining to electronic warfare, military avionics, radars and defence-related mobile systems. (BS)
Rourkela Steel Plant, a unit of SAIL, produced 0.19mn tons of hot metal and 0.18mn tons of crude steel in November, thus making it its best ever performance in November since its inception. (BS)
SAIL is set to reduce prices of flat steel products sold in the spot market by up to 3% or Rs 800/tonne owing to mounting threat from low-priced imports. (ET)
Nalco will spend about Rs220bn in setting up two mega projects, one each in Andhra Pradesh and Orissa. (ET)
Minority investor Templeton Asset Management supports Sun Pharmaceuticals in its legal battle to acquire Israel’s Taro Pharmaceuticals. (BS)
Biocon said it would upgrade the newly acquired bulk drugs facility in Hyderabad and quickly start manufacturing its own portfolio at the erstwhile IDL Specialty Chemicals plant. (BL)
Cipla is in talks with Pifzer and other leading companies for major supply contracts, but has denied any proposal for a stake sale. (BS)
Jubilant Organosys and Eli Lilly & Company have extended their drug discovery collaboration for another five years. (BL)
Nestle said its board of directors, in a meeting scheduled to be held on December 9, would consider the acquisition of nutrition business of Speciality Foods India. (ET)
Fifteen major Indian institutional investors which invested in Satyam Computer have together suffered ‘wrongful losses’ of slightly over Rs16bn. (BS)
Mahindra Satyam plans to expand its global solution centre operations at its campus in Cyberjaya, Malaysia. (BS)
Tech Mahindra is mulling a brand new BPO operation in the Philippines, which will be its third offshore contact centre after Northern Ireland and the UK. (ET)
The government today said three firms of Anil Ambani group - Reliance Infrastructure, RNRL and Rcom - have violated overseas debt norms. (FE)
Employee unions of the SBI have demanded a wage hike of around 27.5%. (FE)
HDFC said all new home loan applications filed till the end of January could avail of its dual-rate offer, under which the interest rate would be 8.25% up to March 31, 2012. (BS)
Union Bank of India has revised its interest rates on foreign currency deposits with immediate effect. (FE)
A combine of Alstom and Schneider Electric have bought the entire stake in Areva T&D of its majority holder, French nuclear major Areva for euro2.3mn. (BS)
IDBI Bank has given the mandate for syndication of US$225mn five-year loans to Australia and New Zealand Banking Group, Royal Bank of Scotland Group and Deutsche Bank AG. (BS)
Mphasis plans to replace its annual salary increment for its staff with a one-time bonus in order to ensure more variability in its employee wage bill and align it better with the company’s performance. (ET)
Essar Steel has agreed to pay Rs1.9mn/acre to the land losers in Paradip where it plans to build its pelletisation plant. (BS)
UTV Software Communications is planning to expand its presence in the regional language space to scale up its television business. (BL)
Bharati Shipyard increased the open offer price for Great Offshore by 5.4% to Rs590/share from Rs560/share earlier; the open offer will remain open from December 3 to December 22. (BS)
A report of the state government states that Vedanta Aluminium has not violated any forest and environment norms at its alumina refinery and bauxite mining site in Kalahandi district of Orissa. (BS)
MTNL said it was unlikely to be able to implement mobile number portability by the government deadline of December 31. (BS)
MTNL announced half a paisa per second plan for its 2G and 3G subscribers for making local and STD calls in the same network. (BS)
With more infrastructure projects needing funds, IIFCL expects a 50% rise in disbursals to Rs49bn in 2009-10. (BS)
HDFC Mutual Fund’s asset base now stands at Rs1trn as at end of November 30. (BL)
Toyota Motor Corporation would unveil the concept model of its compact car for the Indian market next month. (ET)
Wipro will use social media networks such as Facebook and Twitter to project a new identity that will focus on ecology, education and innovation. (ET)
Direct tax collections during April-November period grew by 2.4%. (ET)
India’s exports declined 6.6% to US$13.2bn in October, extending the decline for the 13th month in a row, and its imports too declined by 15% to US$21.9bn. (BS)
Indian DTH sector is expected to see a 100% growth over the next two years as subscriber base is expected to more than double from the present 16mn to over 32mn by 2011. (BS)
19,417 industrial consumers owed Rs2.2bn as outstanding electricity bill to the power distribution companies in Kolkata. (BS)
Finance Minister said that the 10% cap on offloading shares of profit-making PSUs would stay for the next four years. (BS)
Finance Minister said that the disinvestment process in three power Central public sector enterprises - NTPC, Satluj Jal Vidyut Nigam and Rural Electrification Corporation - would be complete by end of the current fiscal. (BL)
The government said it would not withdraw the fiscal stimulus, provided in the last one year to help the economy deal with the global slowdown, in the current financial year. (BS)
DIPP has proposed to increase the FDI cap for DTH services, uplinking hubs, teleport services and FM radio to 74% from the current 49%. (BS)
Dubai crisis may increase cost of funds for India companies, particularly those with business interests in West Asia. (BS)
The government has approved 17 FDI proposals worth Rs45.5bn, including that of the Federal Agency for State Property Management of the Russian Federation to buy 20% stake in telecom service provider Sistema-Shyam for Rs30.5bn. (BS)
Gujarat government will develop seven modern and state-of-the art bus terminals along with commercial facilities at seven locations in four cities on PPP basis. (BS)
Uttarakhand is mulling a new proposal to construct an expressway along the upper Ganga canal from Delhi to Haridwar after Uttar Pradesh decided to scrap the proposed Hindon expressway. (BS)
The expert committee examining the way financial products are sold plans to go ahead with its earlier proposal of banning payment of upfront commission by insurance policyholders. (BS)
The Government plans to develop and upgrade the entire National Highways network to minimum of two-lane NH standards by December 2014 by exploring the possibility of securing World Bank loan and also through budgetary allocations. (BL)
The Government is betting on a big boost in private power project commissioning to partly make up for the slippages expected in projects executed by the CPSU’s during the XI Plan period. (BL)
RBI has said that banks and companies that have violated FEMA while transacting in currency derivatives in the past few years will be penalised. (ET)
RBI instructed the commercial banks to increase their provisioning against bad assets to at least 70% by September 2010. (ET)
The Prime Minister’s economic panel said it could revise upward the economic growth forecast to 7% from 6.5% for the current fiscal on the back of robust economic growth in the second quarter. (ET)
A Committee of experts set up by the petroleum ministry may suggest several measures to cut the fuel subsidy, including freeing of pump prices of petrol, in its report that will be submitted by the end of January next year. (ET)
The government has drawn up a preliminary list of 25 unlisted PSUs for disinvestment. (FE)
Finance ministry has proposed that service providers should be taxed based on the telecom circle once the goods and service tax (GST) regime kicks in. (FE)
Bulls to remain in command
To win without risk is to triumph without glory.
Risk appetite seems to be alive and kicking despite a brief scare that was sparked by the Dubai debt crisis. Experts feel the crisis over the Dubai World debt default is not as serious as feared initially and will be mostly contained. For India, the big sentiment booster has come in the form of the Q2 GDP growth data. Monthly auto sales have only reinforced a growing view that the Indian economy is in a pink of health.
However, not all is hunky dory. Some concerns remain over high fiscal deficit, spiraling inflation, anemic loan growth, shrinking exports and subdued tax collections. Valuations are not cheap. Loose monetary policy could soon be history and the fiscal stimulus too might be gradually withdrawn. Global recovery may also stall in the absence of emergency fire fighting steps.
In short, one must tread cautiously though the bias is positive. Today, we expect a steady start which might pick up if the Nifty crosses 5140. Some resistance is expected near 5200 and support will kick in at around 5000.
The Dubai fiasco is nowhere as close to the western financial meltdown that sent the global economy into a tailspin. Dubai and Abu Dhabi stocks were hammered for a second day on Tuesday even as Dubai World said it was in talks to restructure $26bn worth of debt.
Continued safe haven buying and persistent weakness in the dollar sent gold to another record high, taking the bullion’s advance since January to 36%. Gold futures climb to a fresh record above $1,200 an ounce.
Meanwhile, the purchasing managers’ data from both the US and the UK manufacturing sectors both disappointed.
US stocks rallied on Tuesday as worries about Dubai's debt problems eased, gold hit a record above $1,200 and GE and Comcast moved closer to a deal on NBC Universal. The Dow Jones Industrial Average touched a 14-month high, as Chinese manufacturing grew at the fastest pace in five years and Dubai World said it was in talks to restructure less than half its debt.
The Dow added 127 points, or 1.2%, closing at the highest point since Oct. 2, 2008. The S&P 500 index gained 13 points, or 1.2%, and closed just short of a 14-month high. The Nasdaq Composite index rose 31 points, or 1.5%, and remained short of a 14-month high hit a week ago.
Bets that Dubai's debt problems won't have a major impact on US institutions lifted stocks late on Monday and through Tuesday's session. Stocks also reacted to the day's better-than-expected economic readings on construction spending and pending home sales.
The weak dollar also played a role in the day's advance, boosting commodity prices and stocks.
The momentum is likely to keep stocks firm or even push them higher through year-end, despite the already substantial run up since the March lows. Since bottoming at a 12-year low March 9, the Dow has gained nearly 60%, the S&P 500 has gained 64% and the Nasdaq has gained 72%.
AIG said that it is wiping out $25 billion of its government debt by selling stakes in two of its life insurance subsidiaries to the Federal Reserve Bank of New York. Shares gained 8.6%.
General Electric (GE) has reportedly reached a deal to buy Vivendi SA's 20% stake in NBC Universal for about $5.8 billion, moving GE closer to its goal of partnering with Comcast to create one of the largest US media companies.
GE is looking to sell a 51% stake in NBC Universal to Comcast, while retaining a 49% stake in the company that is valued at around $30 billion.
Dubai World, the city-state's main investment arm, said that it is in talks to restructure $26 billion in debt, cooling worries that it might go into default and wipe out the investment of its creditors.
Global markets slumped last week after the Dubai government asked to defer payments for at least six months on $60 billion in debt owed by Dubai World and Nakheel, its real estate arm.
Major US automakers reported sales in November that met or topped expectations. But any improvements year-over-year were easy, given the dismal results in November 2008. On a monthly basis, sales slumped from October levels.
GM reported a 1.8% drop in November sales from a year ago, versus forecasts for a drop of 1.3%. But sales were down 15% from October levels. Ford Motor's sales were little changed from a year ago and down 10% from October.
The November manufacturing index from the Institute for Supply Management fell to 53.6 from 55.7 in October, surprising economists who were looking for ISM to fall to 55. However, any reading over 50 implies expansion in the sector.
Pending home sales rose 3.7% in October, the ninth monthly increase in a row, according to a National Association of Realtors report released Tuesday. Pending home sales were expected to have fallen 1% after rising 6% previously.
Construction spending in October was unchanged, the government reported. Spending fell 1.6% in September and was expected to have fallen 0.5% in October, according to analysts' estimates.
The dollar fell versus the euro and gained against the yen.
US light crude oil for January delivery rose $1.47 to $78.75 a barrel on the New York Mercantile Exchange.
Treasury prices tumbled, raising the yield on the 10-year note to 3.27%, from 3.20% late on Monday.
COMEX gold for December delivery rallied $18 to settle at $1,199.10 an ounce, after rising as high as $1,202.70. It's the first time the precious metal has ever traded at this level.
European shares kicked off the final month of the year with gains on fading worries about the potential impact of Dubai's debt woes on the global economy. The pan-European Dow Jones Stoxx 600 index added 2.7% to close at 245.58 in a move led by cyclical plays.
The index, however, is still below the close of 247.96 recorded before news was released that Dubai World requested a six-month suspension of its debt payments. Dubai World is now in talks to restructure some of that debt.
The UK's FTSE 100 index rose 2.3% to settle at 5,312.17. Germany's DAX index climbed 2.7% to close at 5,776.61, and the French CAC-40 index gained 2.6% to end at 3,775.74.
Indian markets wiped out the 3.2% decline it witnessed in the past week as bulls cheered stronger than anticipated GDP growth data. Bulls dominated the proceedings on the bourses, extending gains to a second straight session.
Today’s strong run could be attributed to firm cues from the global equity markets. Global stocks rose as the Bank of Japan introduced measures to revive lending and Asian economic data signaled a recovery. The yen fell the most in a month on speculation that the central bank will intervene to curb gains.
In addition, the accelerating monthly auto sales numbers lifted sentiment.
Interest rate sensitive stocks were in demand with the Realty and the Auto stocks among the top gainers. Pharma and Oil & Gas stocks also ended with smart gains. Mid-Cap and the Small-Cap stocks too attracted some buying.
The BSE Sensex surged 272 points at 17,198 after touching a high of 17,218 and a low of 16,967. The index opened at 17,218 against the previous close of 16,926. The NSE Nifty was up 89 points to shut shop at 5,122.
In Asia, the Nikkei in Japan was up 2.5%, while Australia's S&P/ASX ended higher by 0.4%. Shanghai SE Composite in China gained 1.2% and Hang Seng index in Hong Kong was up 1.3%.
In Europe, stocks were in the green. The FTSE in the UK was up 1.7%, The DAX in Germany was up 2% and the CAC 40 index in France gained 2%.
Coming back to India, among the BSE sectoral indices, the realty index was the top gainer, adding 6%, followed by the Auto index that was up 3% and the BSE Pharma index was up 2.5%.
The BSE Mid-Cap index gained 1.7% and the BSE Small-Cap index was up 2.1%.
Among the 30-components of Sensex, 27 stocks ended in the green and only HUL, BHEL and ONGC ended in the negative terrain. Among the major gainers were Tata Motors, Sun Pharma, DLF, M&M, Reliance Industries and Sterlite.
Outside the frontline indices, the big gainers in the broader market were Jet Airways, JP Hydro, Yes Bank, Moser Baer and United Phos. On the other hand, losers included Jain Irrigation, Shriram Transport and Marico.
Stocks like Kiri Dyes, Omnitech, Ksera sera, Deep Industries and Noida Toll Bridge were among the other notable gainers.
Mahindra & Mahindra sold 22,587 vehicles in November, compared with 11,515 registering a growth of 96% on a yoy basis. Shares of M&M gained by 5% to Rs1078, the scrip opened at Rs1036 it touched an intra-day high of Rs1090 and a low of Rs1035 and has recorded volumes of over 0.25mn shares on BSE.
Maruti Suzuki sold a total of 87,807 vehicles in November 2009. This includes 11,448 units of exports. The company had sold 47,704 vehicles in the domestic market in November 2008. November 2008 was exceptionally low sales month, due to impact of economic slowdown.
The 60.1% domestic sales growth in November 2009 is calculated on a low base of November 2008 when the industry was in the midst of worst ever slowdown.
The stock gained 1.7% to Rs1588. It opened at Rs1580 hitting an intra-day high of Rs1608 and intra-day low of Rs1568 recording volumes of 0.17mn on BSE.
TVS Motor posted 23% growth in November 2009, registering total two wheeler sales of 120,844 units against 98,402 units in the corresponding period of the previous year.
Domestic sales of the company witnessed a quantum increase in sales positing growth of 38% recording 106,836 units in November 2009 as against 77,491 in the corresponding period of the previous year.
The stock gained 0.5% to Rs57.45. It opened at Rs58 hitting an intra-day high of Rs58.5 and intra-day low of Rs57 recording volumes of 0.28mn on BSE.
Sterlite Technologies received over Rs6bn in new contracts for its telecom and power products, from prominent incumbents in India and Africa.
Based on the delivery schedules required by its clients, over 30% of the cumulative contract value would be executed within FY10 and the balance within H1 FY11. The total order book of the company stands at ~Rs20.50bn as on November 30, 2009.
Shares of Sterlite Technologies shot up by over 5% to Rs326. The scrip opened at Rs310 it touched an intra-day high of Rs334 and a low of Rs310 and recorded volumes of over 0.4mn shares on BSE.
Peninsula Land secured a receipt of Rs2.75bn from Alok Realtors Private Limited in connection with sale of 6.41 lacs sq. ft. at Peninsula Business Park. The Company has received a further sum of Rs1.6bn from Alok Realtors Private Limited for the said sale at Peninsula Business Park.
Till date, Peninsula Land Limited has received a sum of Rs6.25bn against the total deal consideration of Rs11bn. As on date, the total cash equivalent with Peninsula Land Limited is Rs6.85bn.
Shares of Peninsula Land gained by 4.5% to Rs81. The scrip opened at Rs78.8 it touched an intra-day high of Rs82.65 and a low of Rs78.50 and recorded volumes of over 0.17mn shares on BSE.
Jubilant Organosys, through its subsidiary Jubilant Biosys in Bangalore announced that its 4 year old research collaboration with Eli Lilly has successfully delivered multiple discovery milestone and pre-clinical candidates, resulting in a 5 year extension and expanded portfolio collaboration.
Under the terms of the new 5 year agreement Jubilant will receive research funding and success-based discovery and development milestones.
Shares of Jubilant Org gained 3% to Rs310. The scrip opened at Rs305 it touched an intra-day high of Rs317 and a low of Rs298 and recorded volumes of over 0.35mn shares on BSE.
Sensex to open positive
Headlines for the day
Jubilant Organosys, Lilly extend R&D alliance - DNA Money
Mahindra Satyam expands Malaysia operations- Business Line
Cement despatches rise in November - Business Line
Bharati Shipyard revises open offer price for Great Offshore - Business Standard
Car sales see record November surge - Business Standard
Events for the day
Major corporate action:
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Ex-date for the dividend of HCL Technologies.
Pre-market report
Global signals
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The European stocks records heavy gains of over 2.5% each on Tuesday as the banking stocks rebounds, while the macro economic data further boosted sentiments.
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As the manufacturing and housing data reinforces hopes of sustainable recovery and the weakening dollar spurs the commodity stocks, the major US indices sees the highest close in the 14-months. Dow closes 1.2% higher.
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Yet again the Nikkei 225 trades in the red with marginal losses of 0.17%.However even today the rest of the major Asian indices were trading in the positive zone with gains in the range of 0.55%-1.45% each. At the time of writing this report, SGX Nifty was trading 17 points higher.
Indian markets
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Looking at such strong and positive cues from the global front, Indian stocks may open positive. However, as the day progresses, the domestic indices will follow the Asian and European market movements for further direction.
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Among the local indices, the Nifty could test the 5150-5182 range on the up side, while on the down side it could find support at 5050 and 5000. The Sensex is likely to get support at 16900 and may face resistance at 17400.
Indian ADR's
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Among the Indian ADRs trading on the US bourses, every ADRs closed in the green with the heavy gains of 0.47%-11.03% each, Tata Motors surged most.
Commodity cues
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In the commodity space, the Crude oil prices bounces back, with the Nymex light crude oil for January 2010 series rising by $1.47 to settle at $78.75 a barrel.
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In the metals space, the yellow metal closes above $1200 level, the Comex Gold for February 2010 series surged heavily by $17.90 to settle at $1200.20 a troy ounce, while Comex Silver for December series surges by $0.68 to settle at $19.20 to a troy ounce.
Daily trend of FII/MF investment in equities
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On December 01, 2009, FIIs were the net buyers of the Indian Stocks in the tune of Rs707.70 crore (with the gross purchase of Rs2983.90 crore and gross sales of Rs2276.20 crore).
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Even the Domestic mutual funds mutual funds, on November 30, 2009, were the net buyers of the stocks in the tune of Rs374.90 crore (with gross pu
Copper rises for third straight day
Prices gain as manufacturing activity increases in US
Copper prices rose at Comex and LME on Tuesday, 01 December, 2009 for the third straight day. Prices rose riding on upbeat economic reports in China and US. The weak dollar also boosted copper prices.
At USA, copper futures for March delivery ended higher by 5.5 cents (1.7%) to 3.2035 a pound. Copper ended November 2009 higher by 6.6%. On a year to date basis, copper has climbed 124.7%.
On the London Metal Exchange, copper for delivery in three months ended higher by $90 (1.3%) at $7,020 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
In the currency market on Tuesday, the dollar weakened as concerns eased over Dubai's debt problem. The dollar index, which measures the strength of the dollar against a basket of six other currencies, fell by almost 0.8%.
In economic news, the Institute for Supply Management reported in U.S that manufacturing activity in US improved in November for the fourth straight month, although at a slower pace than in October. Another report showed that signed sales contracts on existing homes rose for the ninth straight month in October in US. These reports also boosted the demand for crude.
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 February delivery closed at Rs 325.4/Kg. The closing price was Rs 4.65/Kg (1.45%) higher than previous closing price. Prices rose to a high of Rs 325.8/ Kg and fell to a low of Rs 320/Kg during the day's trading.
Among other metals traded in the LME on Tuesday, lead added 2.1% to $2,395 a ton and zinc added 1% to end at $2,344 a ton. Nickel rose 0.9% to end at $16,395. Aluminium was up 1.3% at $2,085 a ton.
Market seen extending two-day gains on firm global cues
The market is likely to extend two-day gains following positive global cues. The Dow Jones industrial average advanced to its highest close in 14 months on Tuesday while the MSCI Asia Pacific Index hit a six-week high as Dubai credit risk eased. The S&P CNX Nifty futures for December 2009 expiry were trading 17 points higher in Singapore.
Asian stocks rose for a third day today, 2 December 2009 following rise in commodity prices. Key benchmark indices in Hong Kong, South Korea, China, and Taiwan were up by between 0.55% to 1.14%.
However Japan's Nikkei 225 index dropped 0.17%. The Bank of Japan announced after the market close on Tuesday that it would offer 10 trillion yen ($115 billion) in new short-term funds, but stopped short of more aggressive measures to support the economy. The Bank of Japan's new funding plan fell short of market expectations.
The Reserve Bank of Australia on Tuesday raised its cash rate target by one quarter of a percentage point to 3.75%, further unwinding emergency policy settings no longer appropriate for the country's recovering economy.
US markets kicked off December with a rally posted solid gains, on the heels of a rebound in global share prices, helped by upbeat economic news and fading fears about the Dubai debt crisis. The Dow Jones Industrial Average surged 126.74 points or 1.23% to 10,471.58. The tech-heavy Nasdaq Composite index climbed 31.21 points or 1.46% to 2,175.81 and the broad-market Standard & Poor's 500 advanced 13.23 points or 1.21% to 1,108.86
In key economic news, the Institute for Supply Management said its manufacturing index expanded for a fourth consecutive month in November but at a weaker pace, falling to 53.6% from 55.7 in October.
Dubai World, the holding company at the heart of the Dubai crisis, on Monday announced a restructuring plan involving $26 billion in debt. However, the Dubai government said it was not responsible for Dubai World's debts, dealing a blow to creditors' assumptions that the Arab emirate would guarantee the government-controlled conglomerate's liabilities.
Dubai World, one of the emirate's main state holding companies, last week, asked for a delay on maturities until at least 30 May 2010. The company has total debts of $59 billion, including $3.52 billion of Islamic bonds due 14 December 2009 from its property unit Nakheel.
Back home, Reliance Communications, Reliance Infrastructure and Reliance Natural Resources may come in spotlight on reports of government probe for alleged violations of overseas borrowing rules. Tata Motors' sales jumped 48% to 18,480 units in November 2009 over November 2008. TVS Motors posted a 37% increase to 1.06 lakh two-wheelers. ACC's sales last month fell 4% to 1.66 million metric tons over the previous year.
The government on Tuesday said it would not withdraw the fiscal stimulus, provided in the last one year to help the economy deal with the global slowdown, in the current financial year.
Minister of State for Finance Namo Narain Meena told the Rajya Sabha that the fiscal measures announced by the government and the monetary measures by the Reserve Bank of India were aimed at mitigating the effects of the economic downturn.
Expressing concern over price rise, Finance Minister Pranab Mukherjee on Tuesday said it is mainly due to shortage of essential commodities like pulses, sugar and edible oil. He also suggested strengthening of the public distribution system to provide relief to the common man.
Replying to questions in the Rajya Sabha, Mukherji said the government is regularly monitoring the problem of hoarding and has been holding discussions with state governments on measures to curb it. For checking price rise, Mukherjee said the government has taken measures like reducing import duties on wheat, pulses, maize and raw sugar and banned export of non-Basmati rice.
Exports fell 6.6% to $13.19 billion in October 2009 over October 2008, their 13th straight monthly fall, the government said on Tuesday. Imports dropped 15% from a year earlier to $22 billion. The trade deficit shrunk to $8.8 billion in October 2009 from $11.74 billion a year earlier.
Exports for April-October, the first seven months of the 2009-10 fiscal year, were down 26% at $91.05 billion from the same period in the previous year.
C. Rangarajan, chairman of the prime minister's Economic Advisory Council on Tuesday said the robust growth of the economy in July-September indicated it could expand at around 7% in 2009-10. The latest numbers do indicate that industry and services are growing very strongly, Rangarajan said adding that this could help offset to a very large extent the impact of the decline in agricultural production.
Finance Minister Pranab Mukherjee told parliament on Tuesday that the current trend in inflation in India is a result of a shortage of food items and not due to a demand-push factor. The food articles index rose an annual 15.6% as at 14 November 2009, up from the previous week's 14.6% rise. Weak monsoon and floods in parts of the country have hurt farm output and pushed up food prices. The government is keeping a close watch on futures trading in commodities, Mukherjee said
The finance minister said buoyancy in government's revenue seen earlier may not be there till 2011/12. He said the government will time stake sale in state-run firms so as to get maximum value. He added that there is no plan for a strategic stake sale in state-run firms. The government, last month, decided to cap its holdings in state-run firms at 90% and said it would sell off shares in the firms where this limit was exceeded.
India's manufacturing activity expanded for the eighth straight month in November 2009 but at its weakest pace since March 2009 due to a slowdown in growth of output, new business and employment, a survey showed on Tuesday. The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 companies, fell to 53 in November 2009 from 54.5 in October 2009. A reading above 50 means activity expanded during the month.
Meanwhile, after witnessing substantial redemptions and erosion in assets under management (AUM), the mutual funds industry seems to have got its cheer back. The AUM of 22 fund houses, out of 39, have seen an increase of 7% in the overall average in November over the previous month of the same year.
Government data released on Monday showed the gross domestic product (GDP) grew by 7.9% in Q2 September 2009, from 7.1% in the previous year, shattering forecasts as stimulus measures boosted demand and manufacturing activity surged. The economy had registered a 6.1% growth in the first quarter.
Reacting to the GDP figures Montek Singh Ahluwalia, Deputy Chairman, Planning Commission said economic growth forecast for the year to March 2010 may have to be revised upwards as data released on Monday showed a faster expansion in September quarter. He added that there was no serious concern on inflation as of now and conventional monetary policy was unlikely to be effective in curbing food price rise.
Finance minister Pranab Mukherjee on Monday said he expects the economy to grow around 7% in the fiscal year ending March 2010. During the weekend, the finance minister said that Dubai's debt crisis would not affect India much, but the government is keeping a close watch and will act to prevent any fallout.
Key benchmark indices surged for the second running day on Tuesday, 1 December 2009, as markets across Europe and Asia rallied after worries about Dubai's finance woes receded. The BSE 30-share Sensex was up 272.05 points or 1.61% to 17,198.27 and the S&P CNX Nifty was up 89.30 points or 1.77% to 5122
As per provisional data on NSE, foreign funds bought shares worth Rs 579.09 crore and domestic funds sold shares worth Rs 125.07 crore on Tuesday, 1 December 2009.
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