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Tuesday, December 15, 2009
DB Corp Oversubscription Allotment Details
Qualified Institutional Buyers (QIBs) 68.5217 times
Non Institutional Investors 26.1732 times
Retail Individual Investors (RIIs) 3.4209 times
OVERALL - No. of times issue is subscribed 39.54 times
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BSE Bulk Deals to Watch - Dec 15 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
15/12/2009 531591 Bampsl Sec OMPARKASH GUPTA S 602996 0.58
15/12/2009 532230 Bengal Tea HITESH SHASHIKANT JHAVERI B 47075 55.91
15/12/2009 590059 Bihar Tubes FORT SHARE BROKING PVT LTD. B 100000 71.99
15/12/2009 590059 Bihar Tubes GAURISUTA BUSINESS PVT.LTD B 200000 72.00
15/12/2009 590059 Bihar Tubes SECUROCROP SEC INDIA PVT LTD B 100000 72.92
15/12/2009 590059 Bihar Tubes PIPER SECURITIES PVT. LTD. B 733095 71.67
15/12/2009 590059 Bihar Tubes DHOOT INDUSTRIAL FINANCE LTD B 115000 73.89
15/12/2009 590059 Bihar Tubes PRIKAR FINANCIAL CONSULTANTS PVT LTD B 275000 71.60
15/12/2009 590059 Bihar Tubes ELARA CAPITAL PLC (DR) S 1776400 71.60
15/12/2009 526839 CCAP SETU SECURITIES PVT LTD S 20008 58.45
15/12/2009 533144 COX KINGS SMART EQUITY BROKERS PRIVATE LIMITED B 362282 427.56
15/12/2009 533144 COX KINGS OPG SECURITIES P LTD B 626963 427.10
15/12/2009 533144 COX KINGS SMART EQUITY BROKERS PRIVATE LIMITED S 362282 427.73
15/12/2009 533144 COX KINGS OPG SECURITIES P LTD S 626963 427.35
15/12/2009 526703 Ecoplast REKHA SUBHASH JAIN B 25000 18.15
15/12/2009 526703 Ecoplast SNEHA DILIPBHAI VARIYA B 25050 19.40
15/12/2009 526703 Ecoplast REKHA SUBHASH JAIN S 25000 19.40
15/12/2009 526703 Ecoplast SNEHA DILIPBHAI VARIYA S 25050 18.15
15/12/2009 533055 EDSERV SOFT SETU SECURITIES PVT LTD B 61008 230.39
15/12/2009 533055 EDSERV SOFT HITESH SHASHIKANT JHAVERI B 62586 230.74
15/12/2009 533055 EDSERV SOFT SETU SECURITIES PVT LTD S 60996 230.62
15/12/2009 502223 Excel Glasses PRAKSH KUMAR RAWAL B 116554 5.79
15/12/2009 502223 Excel Glasses JIGNASANI KUNJ SHAH B 94357 5.67
15/12/2009 502223 Excel Glasses RAJIV KHANNA S 77437 5.43
15/12/2009 502223 Excel Glasses JIGNASANI KUNJ SHAH S 94357 5.87
15/12/2009 502223 Excel Glasses SHAIL INVESTMENTS PVT.LTD. S 113603 5.90
15/12/2009 532022 Filatex Fash SAGAR TEX CREATION PRIVATE LIMITED B 57000 15.10
15/12/2009 508918 Greycells Enter PRIME INDIA OPPORTUNITY LTD B 64700 64.64
15/12/2009 511543 GSB Finance GSB SECURITIES PVT LTD B 50000 8.70
15/12/2009 511543 GSB Finance GSB SHARE CUSTODIAN SERVICES LTD S 50000 8.70
15/12/2009 524342 Indo Borax EQUITY INTELLIGENCE INDIA PRIVATE LIMITED B 33000 89.63
15/12/2009 524342 Indo Borax LITTY THOMAS S 26099 89.56
15/12/2009 507981 Jindal Hotels ABHISHEK VIJAYKUMAR SHAH B 255212 54.62
15/12/2009 507981 Jindal Hotels AJAY GUPTA B 30000 56.30
15/12/2009 507981 Jindal Hotels DYNAMIC STOCK BROKING INDIA PVT LTD B 19507 53.28
15/12/2009 507981 Jindal Hotels ABHISHEK VIJAYKUMAR SHAH S 199647 55.01
15/12/2009 507981 Jindal Hotels AJAY GUPTA S 45000 55.28
15/12/2009 507981 Jindal Hotels DYNAMIC STOCK BROKING INDIA PVT LTD S 20503 53.17
15/12/2009 522298 Micro Forge KANDAGATLA SAMBA MURTHY B 34000 2.92
15/12/2009 522298 Micro Forge ROOP KAMAL S 46200 2.91
15/12/2009 531496 Omkar Overseas BHARAT KUMAR SURESHCHAND RABHJATT B 50025 38.81
15/12/2009 531496 Omkar Overseas PAWAR RAVI VASANTBHAI B 26005 38.76
15/12/2009 531496 Omkar Overseas OMPARKASH GUPTA B 55046 39.03
15/12/2009 531496 Omkar Overseas HIREN KIRIT GANDHI B 100000 39.05
15/12/2009 531496 Omkar Overseas VIJAY KUMAR BOHRA B 30000 37.75
15/12/2009 531496 Omkar Overseas HARISHCHANDRA S RAJBHAR B 45000 38.33
15/12/2009 531496 Omkar Overseas SHASHI KANT TIWARI B 61933 38.09
15/12/2009 531496 Omkar Overseas PRADIPBHAI RAJNIKANT RAITHATHA B 25000 38.90
15/12/2009 531496 Omkar Overseas VIJAY VELJIBHAI PADHARIA B 95000 37.75
15/12/2009 531496 Omkar Overseas PATHIK NAYANBHAI SHAH S 26000 39.01
15/12/2009 531496 Omkar Overseas PAWAR RAVI VASANTBHAI S 57005 39.05
15/12/2009 531496 Omkar Overseas OMPARKASH GUPTA S 89404 38.21
15/12/2009 531496 Omkar Overseas RONIT SATYANARAIN AGARWAL S 138641 38.22
15/12/2009 531496 Omkar Overseas AGARWAL PRASHANT SHANKARLAL S 50000 37.75
15/12/2009 531496 Omkar Overseas SHANKARLAL GOPIRAM AGARWAL S 25000 37.70
15/12/2009 531496 Omkar Overseas VIJAY VELJIBHAI PADHARIA S 56000 39.05
15/12/2009 511702 Parsharti Inv KRUPA SANJAY SONI B 17739 34.00
15/12/2009 511702 Parsharti Inv KRUPA SANJAY SONI B 21000 34.09
15/12/2009 511702 Parsharti Inv SANJAY JETHALAL SONI B 34743 34.24
15/12/2009 511702 Parsharti Inv PATEL SHAILESH JIVANLAL S 25187 33.95
15/12/2009 524136 Pee Cee Cosma VASUMATIBEN GULABDAS MITHAWALA B 24000 50.00
15/12/2009 524136 Pee Cee Cosma FARNAZ JIMMY SINGANPORIYA B 24000 47.69
15/12/2009 524136 Pee Cee Cosma VASUMATIBEN GULABDAS MITHAWALA S 24000 47.69
15/12/2009 524136 Pee Cee Cosma FARNAZ JIMMY SINGANPORIYA S 24000 49.95
15/12/2009 531855 Prabhav Inds PUSHPA RAMESH SHAH B 194300 31.65
15/12/2009 531855 Prabhav Inds RAMESH VIRAJ SHAH B 150000 31.65
15/12/2009 531855 Prabhav Inds NATURAL EXPO AGRO INDUS LTD S 56000 31.72
15/12/2009 531855 Prabhav Inds SHREENATHJI FINSTOCK PVT LTD S 192000 31.67
15/12/2009 531855 Prabhav Inds PACIFIC FINSTOCK LIMITED S 46000 31.69
15/12/2009 531855 Prabhav Inds KAVIT INVESTMENT PVT LTD S 149000 31.88
15/12/2009 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA B 203509 32.18
15/12/2009 502587 Rama Pulp PRAVINCHANDRA DAMJIBHAI GHAGHDA B 50000 32.60
15/12/2009 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA S 169228 32.34
15/12/2009 590077 Ranklin Sol R O BART B 29300 52.74
15/12/2009 533056 SARK SYS TURNKEY DEALERS PVT LTD B 49500 9.92
15/12/2009 533056 SARK SYS KISHAN GOPAL MOHTA S 49500 9.92
15/12/2009 532332 Softpro Sys TRANSIT VINIMAY PRIVATE LIMITED B 35000 230.90
15/12/2009 532348 Subex MANJULA JAYNTILAL JAIN B 188316 86.67
15/12/2009 522087 Sulzer India SWATI PATEL B 20000 987.00
15/12/2009 522087 Sulzer India MILIND PATEL B 20000 989.45
15/12/2009 522087 Sulzer India BHARAT JAYANTILAL PATEL S 38693 990.00
15/12/2009 530419 Sumedha Fisc SAKET MERCANTILES PVT LTD B 50000 15.45
15/12/2009 530419 Sumedha Fisc CAMEL FOODS PVT.LTD B 91201 16.02
15/12/2009 530419 Sumedha Fisc SAAKET MERCANTILES PVT LTD S 50000 15.45
15/12/2009 530419 Sumedha Fisc RAJESH ROSS CHANDRAN S 153000 15.93
15/12/2009 526133 Supertex Inds HEMANT RAJENDRABHAI SHAH B 500000 3.00
15/12/2009 526133 Supertex Inds NITABEN SHAILESHBHAI PATEL S 500000 3.00
15/12/2009 533121 THINKSOFT RAJENDRAKUMAR RATANCHAND OSWAL HUF B 54036 287.56
15/12/2009 533121 THINKSOFT A.K.G. STOCK BROKERS PVT. LTD. B 59185 284.78
15/12/2009 533121 THINKSOFT MBL & Co. LTD. B 61582 284.07
15/12/2009 533121 THINKSOFT CHIMANLAL POPATLAL MATALIA B 51915 287.33
15/12/2009 533121 THINKSOFT CHANDARANA INTERMIDIARY BROKERS PVT LTD B 61979 286.28
15/12/2009 533121 THINKSOFT OPG SECURITIES P LTD B 153684 286.86
15/12/2009 533121 THINKSOFT RAJENDRAKUMAR RATANCHAND OSWAL HUF S 54036 288.73
15/12/2009 533121 THINKSOFT A.K.G. STOCK BROKERS PVT. LTD. S 59185 284.79
15/12/2009 533121 THINKSOFT MBL & Co. LTD. S 61582 283.90
15/12/2009 533121 THINKSOFT CHIMANLAL POPATLAL MATALIA S 51915 287.21
15/12/2009 533121 THINKSOFT CHANDARANA INTERMIDIARY BROKERS PVT LTD S 61979 285.96
15/12/2009 533121 THINKSOFT OPG SECURITIES P LTD S 153684 286.77
15/12/2009 531249 Well Pack Papers SHOBHNABEN R PARMAR B 47069 334.36
15/12/2009 531249 Well Pack Papers PANDYA YAMINIBEN M B 44252 329.02
15/12/2009 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR B 60683 333.00
15/12/2009 531249 Well Pack Papers OMPARKASH GUPTA B 24640 333.20
15/12/2009 531249 Well Pack Papers VISHRAM GHADSHI SANTOSH B 22500 335.84
15/12/2009 531249 Well Pack Papers PREMCHAND WALMIKI AMAR B 22500 335.87
15/12/2009 531249 Well Pack Papers SHOBHNABEN R PARMAR S 43579 334.54
15/12/2009 531249 Well Pack Papers PANDYA YAMINIBEN M S 39453 331.88
15/12/2009 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR S 67139 334.08
15/12/2009 531249 Well Pack Papers OMPARKASH GUPTA S 26905 329.94
15/12/2009 531249 Well Pack Papers GAUTAMCHAND DURAGCHANDJI JAIN S 27000 337.03
NSE Bulk Deals to Watch - Dec 15 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
15-DEC-2009,BHARTISHIP,Bharati Shipyard Limited,MBL & COMPANY LTD.,BUY,167642,219.20,-
15-DEC-2009,COX&KINGS,Cox & Kings (I) Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,430647,427.36,-
15-DEC-2009,DCMFINSERV,DCM Financial Ser Ltd,VINTAGE LEARING PVT LTD,BUY,100000,4.50,-
15-DEC-2009,EDSERV,Edserv Softsystems Limite,SETU SECURITIES LTD,BUY,70299,230.15,-
15-DEC-2009,EDSERV,Edserv Softsystems Limite,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,70720,230.36,-
15-DEC-2009,FCSSOFT,FCS Software Solutions Li,TRANSGLOBAL SECURITIES LTD.,BUY,1120919,15.38,-
15-DEC-2009,FCSSOFT,FCS Software Solutions Li,V. P. CONSULTANTS PRIVATE LIMITED,BUY,1052666,15.37,-
15-DEC-2009,FOURSOFT,Four Soft Limited,JINESH AJITKUMAR JAIN,BUY,208686,31.16,-
15-DEC-2009,GMRFER,GMR Ferro Alloys & Indust,DB (INTERNATIONAL) STOCK BROKERS LTD.,BUY,69476,36.25,-
15-DEC-2009,LUMAXTECH,Lumax Auto Technologies L,ALBULA INVESTMENT FUND LTD,BUY,300000,68.92,-
15-DEC-2009,NIITTECH,NIIT Technologies Limited,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,500000,185.73,-
15-DEC-2009,SPICEMOBIL,Spice Mobiles Limited,SHARAD KANTILAL SHAH,BUY,380000,30.00,-
15-DEC-2009,SUBEX,Subex Limited,MANJULA JAYANTILAL JAIN,BUY,211176,86.75,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,ADITYA NITINBHAI PAREKH,BUY,73515,283.12,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,58055,284.94,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,CHIMANLAL P. MATALIA,BUY,54732,286.66,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,60750,288.65,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,BUY,54149,285.74,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,BUY,67143,283.69,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,37573,286.97,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,BUY,95264,287.22,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,RAJENDRAKUMAR RATANCHAND OSWAL HUF,BUY,89864,287.99,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,RAMINDER KAUR DHIR,BUY,52747,284.24,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,REGENT FINANCE CORPORATION PVT. LTD.,BUY,163113,286.23,-
15-DEC-2009,ABGSHIP,ABG Shipyard Limited,NEW VERNON ASSET MANAGEMENT LIMITED A/C NEW VERNON INDIA LI,SELL,264932,205.99,-
15-DEC-2009,BHARTISHIP,Bharati Shipyard Limited,MBL & COMPANY LTD.,SELL,167642,219.56,-
15-DEC-2009,COX&KINGS,Cox & Kings (I) Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,430647,427.39,-
15-DEC-2009,DCMFINSERV,DCM Financial Ser Ltd,AMAZING CAPITAL SERVICES PRIVATE LIMITED,SELL,100000,4.50,-
15-DEC-2009,EDSERV,Edserv Softsystems Limite,SETU SECURITIES LTD,SELL,58283,230.05,-
15-DEC-2009,EDSERV,Edserv Softsystems Limite,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,70720,230.24,-
15-DEC-2009,FCSSOFT,FCS Software Solutions Li,TRANSGLOBAL SECURITIES LTD.,SELL,1120919,15.39,-
15-DEC-2009,FCSSOFT,FCS Software Solutions Li,V. P. CONSULTANTS PRIVATE LIMITED,SELL,1052666,15.38,-
15-DEC-2009,FOURSOFT,Four Soft Limited,JINESH AJITKUMAR JAIN,SELL,209977,31.13,-
15-DEC-2009,GMRFER,GMR Ferro Alloys & Indust,DB (INTERNATIONAL) STOCK BROKERS LTD.,SELL,69476,36.20,-
15-DEC-2009,LUMAXTECH,Lumax Auto Technologies L,DHANESH-KUMAR-JAIN,SELL,300000,68.92,-
15-DEC-2009,MANGTIMBER,Mangalam Timber Pro Ltd,KRIPA SECURITIES PRIVATE LIMITED,SELL,139661,32.05,-
15-DEC-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,SOLREX PHARMACEUTICALS COMPANY,SELL,500000,221.96,-
15-DEC-2009,SPICEMOBIL,Spice Mobiles Limited,SHARAD KANTILAL SHAH,SELL,95000,30.00,-
15-DEC-2009,SUBEX,Subex Limited,MANJULA JAYANTILAL JAIN,SELL,21680,85.92,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,ADITYA NITINBHAI PAREKH,SELL,73515,285.12,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,58055,285.16,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,CHIMANLAL P. MATALIA,SELL,54732,287.00,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,60750,289.06,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,SELL,54149,286.38,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,SELL,67143,284.19,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,53027,285.23,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,SELL,95264,287.37,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,RAJENDRAKUMAR RATANCHAND OSWAL HUF,SELL,89864,287.64,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,RAMINDER KAUR DHIR,SELL,52747,285.18,-
15-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,REGENT FINANCE CORPORATION PVT. LTD.,SELL,163113,288.85,-
Sensex ends below 17k; RComm, HDFC Bank plunge
The Sensex wrapped the day on a weak note weighed by banking, auto, PSU and oil & gas stocks except healthcare. It opened higher with a gain of 53.04 points, at 17,150.59 on Tuesday tracking firm global cues and on advance tax number news made by the companies. After trading in green for brief period, the index lost all its firmness and fell into the negative terrain as profit booking emerged in continued to trade in a lacklustre manner. Before the final half an hour of close, the Sensex plunged further on sustained selling to finally close on a depressing note after touching a day`s low of 16,835.78.
The banking and financial sector witnessed heavy selling pressure as investors feared that the Reserve Bank may tighten the monetary policy next month to contain rising inflation.
BSE Midcap and Smallcap index dipped 1.56% and 1.42% respectively.
Asian stocks declined led by Chinese developers on speculation China will curb land. Japanese benchmark index Nikkei 225 lost 22.20 points, or 0.22%, to end at 10,083.48. Hong Kong`s Hang Seng fell 271.83 points, or 1.23%, to end at 21,813.92. China`s Shanghai Composite decreased 28.44 points, or 0.86% to end at 3,274.46.
The Sensex ended the day with a loss of 220.39 points, or 1.29% at 16,877.16 after touching a high of 17,200.47 and a low of 16,835.78. The broad-based NSE Nifty declined 72.65 points, or 1.42% at 5,033.05 after hitting a high of 5,129.45 and a low of 5,018.25.
Leaders in the 30-share index were ITC (1.27%), Hindalco Industries (1.07%), Infosys Technologies (0.34%), Tata Steel (0.23%), NTPC (0.12%), and Wipro (0.04%).
On the other hand, Reliance Communications (3.73%), HDFC Bank (3.27%), Tata Motors (3.18%), State Bank Of India(3.00%), ICICI Bank (2.95%), and Jaiprakash Associates (2.58%) were the major losers in the Sensex.
Overall market breadth was sharply negative. Out of the total 2,910 stocks traded at BSE, 808 advanced, 2,031 declined while 71 remained unchanged.
Among the sectoral indices, BSE Bankex went down 2.95%, Auto fell 1.93%, PSU fell 1.79%, Oil & Gas went down 1.57% and Capital Goods declined 1.56%, while BSE HC which gained 0.11%.
Nifty December 2009 futures at discount
Turnover declines
Nifty December 2009 futures were at 5,021, at a discount of 12.05 points as compared to the spot closing of 5,033.05. Turnover in NSE's futures & options (F&O) was Rs 69,721.45 crore, lower than Rs 73,694.26 crore on Monday, 14 December 2009.
ICICI Bank December 2009 futures at premium at 827.40 compared to the spot closing of 826.
Unitech December 2009 futures were near spot price at 84.80 compared to the spot closing of 84.65.
Jindal Steel & Power December 2009 futures were near spot price at 713.40 compared to the spot closing of 713.
In the cash market, the S&P CNX Nifty lost 75.65 points or 1.42% at 5,033.05.
DB Corp IPO subscribed a massive 39 times
Gets bids for 58.29 crore shares as against 1.49 crore shares on offer
The initial public offer (IPO) of DB Corp was subscribed a massive 39.11 times by 16:00 IST on the last day of the IPO on Tuesday, 15 December 2009, National Stock Exchange data showed. The IPO received bids for 58.29 crore shares as against 1.49 crore shares on offer.
DB Corp, the publisher of Hindi daily Dainik Bhaskar, has set a price band of Rs 185 to Rs 212 per share for the IPO. The company will offer a discount of Rs 2 per share to retail investors. Based on the price band, DB Corp would be raising around Rs 336-385 crore.
DB Corp has placed 32.71 lakh equity shares to nine anchor investors. The anchor investors, FID Funds (Mauritius), FIL Trustee Company, Nomura Funds Ireland- India Equity Funds, ICICI Prudential Life Insurance Company, IDFC Classic Equity Fund, Government of Singapore, Reliance Capital Trustee Company, India Capital Fund, BNP Paribas Arbitrage, all committed at the upper end of the price band of Rs 212, according to a notice sent to the exchanges.
DB Corp is in the business of print media, and publishes 7 newspapers, 48 newspaper editions and 128 sub-editions in three languages (Hindi, Gujarati and English) across 11 states.
Of the proceeds of the IPO, a chunk will be used to consolidate the company's position in existing markets by upgrading infrastructure. It will also enter some new markets by setting up publishing units.
DB Corp also plans to utilise Rs 110 crore to repay debt and Rs 20 crore to lower working capital loans. The company is focusing on increasing its reach in Tier II and III cities where consumption is growing at a faster pace and is higher than Tier I cities.
A broad-based decline
The key benchmark indices slumped, reversing an initial rally, as the dollar index, which tracks the greenback against a trade-weighted basket of six major counterparts, climbed roughly half a percent to a six-week high of 76.741. The dollar's strength sparked fears of unwinding of dollar carry trade in which investors borrow in US dollars and invest it in high-yielding currencies and assets elsewhere. The dollar has been under pressure this year on speculation the US Federal Reserve will keep interest rates low for a prolonged period of time to aid recovery in the US economy. European shares and US index futures reversed initial gains.
The Bombay Stock Exchange (BSE) on Tuesday said it will advance trading hours by 10 minutes from 18 December 2009. Trading in the equity and equity derivatives segment will commence from 9:45 IST onwards, instead of the present timing of 9:55 IST, the BSE said.
The BSE Sensex fell 220.39 points or 1.29%, off close to 320 points from the day's high. The Sensex fell below the psychological 17000 mark.
Bank stocks extended Monday's (14 December 2009)'s losses on fears of monetary tightening by the central bank. Auto and capital goods stocks also fell. Index heavyweight Reliance Industries reversed initial gains. The market breadth was weak.
Intraday volatility was high. The market pared gains after an early surge triggered by higher advance tax numbers by some Indian firms for the third installment. The market regained strength in morning trade. But the intraday rebound was short-lived. The market once again pared gains in mid-morning trade. The market slipped into the red later. The market weakened once again after recovering from lower level in early afternoon trade. The market slumped in mid-afternoon trade as the dollar strengthened. The market tumbled to a fresh intraday low in late trade.
India VIX, a volatility index based on the S&P CNX Nifty index option prices, rose 1.54% at 28.32. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days
The government will bring down its fiscal deficit to 3 of gross domestic product after fiscal year 2011/12, Finance Minister Pranab Mukherjee told parliament on Tuesday. The deficit is set to widen to 6.8% in the current fiscal year to March 2010, after tax cuts and stimulus spending. Mukherjee said this level of deficit was "unsustainable" and it would be reduced to 5.5% in fiscal year 2010/11 and to 4% in 2011/12.
Foreign direct investment (FDI) into India in the April-October period was $17.65 billion, down 5.7% from $18.71 billion in the same period in 2008, government data said on Tuesday. FDI flows in October were $2.332 billion, up from $1.497 billion in the same month last year, the data showed.
The government's total spending will remain at Rs 1020000 crore ($218 billion) for the fiscal year to March 2010, same as the budget estimate made in July 2009, finance minister told parliament on Monday. Pranab Mukherjee also said the federal fiscal deficit in 2009/10 would remain within the targeted 6.8% of gross domestic product.
In foreign exchange markets, the euro hit a 2 1/2-month low against the dollar on Tuesday as traders dumped the single European currency on the back of reports that Austria had put one of its major banks on a watchlist. The euro fell more than half a percent on the day to $1.4565, plumbing its weakest since early October 2009. Losses in the euro helped to push the dollar up against a currency bask.
Closer home, many Indian firms have reportedly paid higher advance tax in the third installment. As per media reports, Tata Motors has paid Rs 100 crore in third quarter versus Nil payment in the same period last year. Mahindra & Mahindra paid Rs 195 crore versus Rs 4.5 crore. Tata Steel paid Rs 650 crore versus Rs 260 crore. Hindalco Industries paid Rs 100 crore versus Rs 40 crore. Hindustan Unilever paid Rs 200 crore versus Rs 155 crore, Larsen & Toubro paid Rs 270 crore versus Rs 210 crore, Grasim Industries Q3 advance tax at Rs 150 crore versus Rs 75 crore, UltraTech Cement paid Rs 90 crore versus Rs 65 crore, HDFC's Q3 advance tax was at Rs 320 crore versus Rs 280 crore.
Bajaj Auto paid Rs 320 crore versus Rs 105 crore. The country's largest private sector company Reliance Industries paid Rs 850 crore, versus 450 crore year-ago period. Tata Consultancy Services' Q3 advance tax was at Rs 177 crore versus Rs 129 crore. ACC's Q3 advance tax was at Rs 110 crore versus Rs 125 crore. HDFC Bank's Q3 advance tax jumped to Rs 400 crore from Rs 300 crore. State Bank of India Q3 advance tax was at Rs 1795 crore versus Rs 1700 crore. ICICI Bank's Q3 advance tax fell to Rs 301 crore versus Rs 625 crore.
Advance tax is paid in four installments in June, September, December and March, and is based on taxpayers' projected income, giving an indication of industry's performance in coming months.
Meanwhile, Moody's Investors Services on Tuesday raised its outlook on rupee rating to positive from stable, citing the country's strong external position and resilience to the global credit crisis. Moody's current local currency rating for the country is Ba2, two notches below investment grade. The change in the outlook on the local currency government bond rating was prompted by increasing evidence that the Indian economy has demonstrated its resilience to the global crisis and is expected to resume a high growth path with its underlying credit metrics relatively intact, Moody's said.
Moody's also raised the ceiling on Indian banks' foreign currency deposits to Ba1 from Ba2 to better reflect the robust external position of the country. It said the latest rating action does not affect its outlook on the government's foreign currency bond ratings, which remain stable at Baa3.
The wholesale price index rose an annual 4.78% in November, higher than estimates and October's 1.34% rise, as food prices surged after the worst monsoon rains since 1972 and then flooding hurt crops. However, Finance Secretary Ashok Chawla said inflation was still below the central bank's forecast of 6.5% for the end of the fiscal year next March.
While rising inflation has been mainly driven by a surge in food prices -- they were up an annual 16.71% in November -- the index for manufacturing products, which accounts for almost two-thirds of WPI basket, rose 3.99 % in November from previous month's annual rise of 1.36%.
Industrial output grew 10.3% in October from a year earlier, on robust consumer demand and government stimulus spending, and annual economic growth of 7.9% in the September quarter was the fastest in 18 months.
The central bank, which slashed banks' reserve requirements and cut its key lending rate by 425 basis points during the worst of the global crisis, began scaling back stimulus at its October policy review by removing some liquidity support measures. It left rates steady at October's review. The next review is in late January, but it can adjust monetary policy at any time.
The Asian Development Bank (ADB) hiked growth forecasts for developing economies in Asia on Tuesday, just three months after its previous forecast, but warned against any hasty withdrawal of stimulus packages. The Manila-based multilateral bank said that regional economies should grow 4.5% on average in 2009 and 6.6% in 2010.
In September 2009, the bank had forecast 2009 growth at 3.9% and 2010 expansion at 6.4%. However, the ADB warned that care must be taken in withdrawing economic stimulus packages. ADB said that inflation remained muted for the moment and was likely to remain so, even while the recovery was taking hold. This had allowed authorities to maintain fiscal and monetary stimulus packages. Risks to Asia's expansion included a short-lived recovery in developed economies and destabilising capital flows, it said.
Meanwhile, the initial public offer of DB Corp, India's second largest regional newspaper, was subscribed a massive 39.38 times by 17:00 IST on the last day of issue today, 15 December 2009. The company has set a price band of Rs 185-212 a share.
European shares reversed initial gains as investors turned cautious ahead of a meeting of the US Federal Reserve and a slew of economic data in the US this week. The benchmark indices in France, UK and Germany were down by between 0.17% to 0.67%.
Most Asian stocks fell on Tuesday, as Chinese developers fell on speculation China's government will take more steps to curb property speculation. The key benchmark indices in China, Hong Kong, Japan, Singapore and Indonesia fell by between 0.03% to 1.23%.
US index futures reversed early gains. Trading in US index futures indicated Dow could fall 26 points at the opening bell on Tuesday, 15 December 2009.
US stocks closed at 14-month highs on Monday as news of the Exxon Energy deal and a lifeline for Dubai helped buoy investors' appetite for risk. The Dow rose 29.55 points, or 0.3%, to 10,501.05, its highest close since 1 October, 2008. The S&P 500 index added 7.70 points, or 0.7%, to 1,114.11, its highest finish since 2 October, 2008 and the Nasdaq composite index gained 21.79 points, or 1%, to 2,212.10.
Exxon Mobil gave a boost to the energy sector with its plans to buy natural-gas developer XTO Energy in an all-stock deal valued at $ 31 billion.
Citigroup Inc and Wells Fargo & Co said they were paying back funds to the US government, in transactions that will end taxpayers' capital support of the biggest US banks much sooner than had been expected just weeks ago.
A key event this week is a regular two-day meeting of the US Federal Reserve Meeting which begins on Tuesday, 15 December 2009. The Fed is expected to maintain its pledge to keep US interest rates close to zero for "an extended period" after Chairman Ben Bernanke warned that US economic recovery still faced "formidable headwinds", such as tight credit conditions and rising unemployment. Bernanke's re-appointment as chairman of the Federal Reserve by the Senate banking committee is expected on Thursday.
Investors, meanwhile, are increasingly wondering when Bernanke will signal any changes to the exceptionally loose US monetary policies and liquidity conditions that have propelled asset markets higher this year. US industrial production during November, the figures for which are due on Tuesday, is expected to rise 0.5%. This would slow the year-on-year decline from minus 7.1% in October to minus 5.4%.
US producer prices are expected to show the headline measure returning to positive territory for the first time in a year, with the year-on-year rate rising from minus 1.9% in October to a rise of 1.6%. US consumer price inflation is also likely to move into positive territory for the first time since February 2009, with the headline measure expected to rise from minus 0.2% in October to a rise of 1.8%. Core inflation, though, remains low and could sink below 1% next year following a sharp slowdown in labour costs.
The BSE Sensex fell 220.39 points or 1.29% to 16877.16. The Sensex rose 102.92 points at the day's high of 17200.47 in early trade. The Sensex fell 261.77 points at the day's low of 16835.78 at the fag end of the trading session.
The S&P CNX Nifty fell 72.65 points or 1.42% to 5,033.05. Nifty December 2009 futures were at 5,021, at a discount of 12.05 points as compared to the spot closing of 5,033.05. Turnover in NSE's futures & options (F&O) was Rs 69,721.45 crore, lower than Rs 73,694.26 crore on Monday, 14 December 2009.
BSE clocked a turnover of Rs 4359 crore, higher than Rs 4130.02 crore on Monday, 14 December 2009.
The market breadth, indicating the overall health of the market was weak. On BSE, 804 shares advanced as compared with 2035 that declined. A total of 68 shares remained unchanged. The breadth was positive in early trade.
Among the 30-member Sensex pack, 24 fell while rest rose.
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 7229.85 points or 74.94% in calendar year 2009, as on 15 December 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8716.76 points or 106.81% as on 15 December 2009.
Coming back to today's trade, the BSE Mid-Cap index fell 1.56% and the BSE Small-cap index fell 1.42% Both the indices underperformed the Sensex.
The sectoral indices on BSE showed a mixed trend. The BSE Healthcare index (up 0.11%), the BSE IT index (down 0.08%), the BSE FMCG index (down 0.19%), the BSE Metal index (down 0.55%), the BSE Teck index (down 0.57%), the BSE Realty index (down 1.2%), outperformed the Sensex.
The BSE Consumer Durables index fell 1.29% and matched the decline in the Sensex. The BSE Bankex (down 2.95%), the BSE Auto index (down 1.93%), the BSE PSU index (don 1.79 %), the BSE Oil & Gas index (down 1.57%), the BSE Capital Goods index (down 1.56%), the BSE Power index (down 1.51%) underperformed the Sensex.
India's largest private sector firm by market capitalisation Reliance Industries (RIL) fell 1.41% to Rs 1051.35. The stock came off the day's high of Rs 1079. Reliance Industries paid Rs 850 crore advance tax in third installment, versus Rs 450 crore over the year-ago period.
RIL would decide on submitting a financial bid for bankrupt LyondellBasell on Tuesday, after the outcome of a US court hearing on a revised rescue plan. LyondellBasell filed an amended reorganisation plan with a US court proposing a $2.8 billion rights issue as it awaits a possible bid from RIL.
Auto stocks fell on profit taking. India's largest small car maker by sales Maruti Suzuki India fell 1.55%. Germany's Volkswagen and Suzuki Motor, Maruti Suzuki's parent, reportedly plan to develop a new small car for the Indian market. Japan's Suzuki Motor said on Wednesday 9 December 2009 it will sell a 19.9% stake to Volkswagen (VW) for $2.5 billion and use half the proceeds to buy shares in the German automaker, as the two firms form a formidable force in the auto industry. Japan's Suzuki has a 54.2% stake in Maruti Suzuki India
Suzuki's chief told the media recently that the company will cooperate with VW in India by sharing common components. VW's chief Winterkorn said the firm will pursue synergies in India between Suzuki, Volkswagen, Skoda brands.
Maruti's total vehicle sales spurted 66.60% to 87,807 units in November 2009 over November 2008. Domestic sales spurted 60.10% to 76,359 units, while exports surged 128.60% to 11,448 units in November 2009 over November 2008.
India's largest motorcycle maker by sales Hero Honda Motors fell 1.14%. The company's total vehicle sales jumped 32% to 3.81 lakh units in November 2009 over November 2008.
India's second largest bike maker by sales Bajaj Auto fell 2.33%. Bajaj Auto will reportedly stop producing scooters by March 2010 to focus on motorcycles.
Bajaj Auto on 9 December 2009 launched a 135 cc Pulsar, pushing the Pulsar brand into the mass segment. Bajaj expects a sell a minimum 30,000 units per month of the new Pulsar model. The automaker had recently refreshed the entire Pulsar lineup and expects total Pulsar sales to cross 80,000 units per month.
The company's 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.
India's top truck maker by sales Tata Motors fell 3.18% even as company paid Rs 100 crore as advance tax in third quarter versus Nil same quarter last year
India's top tractor marker by sales Mahindra & Mahindra (M&M) fell 1.91% even after company paid Rs 195 crore as advance tax in third quarter versus Rs 4.5 crore same quarter last year. M&M said during trading hours today theat it bought majority stakes in two Australian firms. The company's 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.
Car sales in India rose an annual 61% to 1,33,687 in November 2009 over November 2008, boosted by improved consumer sentiment, easier availability of loans and a low sales base a year earlier, an industry body said on Tuesday. Sales of trucks and buses, a gauge of economic activity, doubled to 40,847 units in November from 20,631 a year earlier, data from the Society of Indian Automobile Manufacturers showed.
India's largest engineering and construction firm by sales Larsen & Toubro fell 1.16% even after the company paid Rs 270 crore as advance tax in third quarter versus Rs 210 crore same quarter last year.
Among other capital goods stocks, Praj Industries, Bharat Heavy Electricals, ABB, BEML, fell by between 0.55% to 4.61%.
Banking shares fell on a likely monetary tightening by the RBI. India's second largest private sector bank by net profit HDFC Bank fell 3.27% even as bank's Q3 advance tax jumped to Rs 400 crore versus Rs 300 crore. Its ADR rose 0.74% on Monday.
India's largest bank by net profit and branch network State Bank of India fell 3.18%. The state-run bank paid advance tax of Rs 1795 crore versus Rs 1700 crore.
India's largest private sector bank by net profit ICICI Bank fell 2.95% as bank's Q3 advance tax fell to Rs 301 crore from Rs 625 crore. Its ADR fell 0.12% on Monday. ICICI Bank has launched a home-loan scheme under which 8.25% interest rate will be fixed for the first two years. The floating rates will apply after 2 years. These rates will be applicable to loans sanctioned between December 2009 and January 2010.
India's largest mortgage lender by total income Housing Development Finance Corporation (HDFC) fell 2.42% even as company's Q3 advance tax surged to Rs 320 crore from Rs 280 crore. The stock extended a recent fall triggered by investor worry a dual interest rate scheme on home loans introduced by the company would hit margins.
HDFC, recently 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 cement maker by sales ACC fell 0.86% as company's Q3 advance tax was at Rs 110 crore, lower than Rs 125 crore in the same period last year.
Among other cement stocks, UltraTech Cement, Ambuja Cements and Birla Corporation fell by between 0.25% to 2.11%.
Cement prices are reportedly seen hardening in the January-March 2010 quarter as demand from state projects picks up and rural housing drives volume growth. Prices went up by Rs 8-10 for a 50 kg bag southern India late November to Rs 155-175, while a similar hike in Mumbai on 2 December 2009 raised prices to Rs 240-245 per bag.
IT stocks rose for the second straight day after stronger-than-expected retail sales and consumer sentiment data in the US reinforced investor confidence in a steady economic recovery. US is the biggest market for Indian IT companies. India's second largest software services exporter Infosys Technologies rose 0.34% as its ADR rose 1.75% on Monday. India's third largest software services exporter Wipro rose 0.04% as its ADR rose 0.85% on Monday. But, India's largest IT exporter by sales Tata Consultancy Services fell 0.69% even as company's Q3 advance tax surged to Rs 177 crore from Rs 129 crore.
Telecom stocks fell on profit taking. Telecom minister A Raja said on Friday 11 December 2009 there is no change in 3G auction schedule. Meanwhile, the central bank, last week, allowed telecom firms to access oversees markets to fund their bids for 3G spectrum. India's largest mobile services provider by sales Bharti Airtel fell 0.95%. Bharti Airtel sees revenue pressured in the short term amid an intense price war in the country's wireless sector, director Akhil Gupta said on 7 December 2009.
India's second largest mobile services provider by sales Reliance Communications fell 3.73%. The company has reportedly won mgovernance contracts worth over Rs 500 crore. The government may impose a penalty on Reliance Communications after examining a state audit report that found the No. 2 telecoms firm under-reported revenue for two years, the telecoms minister A Raja said last week.
Mobile operators including Bharti Airtel, Vodafone Essar and Reliance Communications are locked in a tariff war, raising concerns about telecom firms' profitability. The price war is aimed at grabbing new users as new firms enter the market.
India's largest thermal power generator by sales NTPC rose 0.12%, As per reports the government plans to mop up around Rs 11,000 crore from the disinvestment of 5% stake in the utility giant.
Among other power stocks, Reliance Power, Reliance Infrastructure and Torrent Power fell by between 1.4% to 3.09%.
India's largest FMCG maker by sales Hindustan Unilever fell 0.8% even after company paid Rs 200 crore as advance tax in third quarter versus Rs 155 crore same quarter last year.
Among other FMCG stocks, Nestle India, Dabur India and Tata Tea fell by between 0.45% to 1.31%.
India's largest steel maker by sales Tata Steel rose 0.23% after company paid Rs 650 crore as advance tax in third quarter versus Rs 260 crore same quarter last year.
India's largest aluminum maker by sales Hindalco Industries rose 1.07% after company paid Rs 100 crore as advance tax in third quarter versus Rs 40 crore same quarter last year.
But, Hindustan Zinc, National Aluminum Company, Sterlite Industries fell by between 0.38% to 0.97%.
Realty stocks fell on profit taking. India's largest realty player by market capitalization DLF fell 0.43%. DLF, is reportedly kicking off an integration plan with DLF Assets (DAL), a separate company set up by billionaire K P Singh, by buying out promoters' stake in the latter. DLF promoters had invested in DAL through Caraf Builders & Constructions and DAL has been set up to buy commercial properties of DLF. A board meeting of DLF will be held today to consider integration of Caraf Builders & Constructions, which is a promoter group company, with its wholly-owned subsidiary DLF Cyber City Developers.
Cals Refineries clocked the highest volume of 1.2 crore shares on BSE. Unitech (1.04 crore shares), Suzlon Energy (0.86 crore shares), IFCI (0.78 crore shares), Cox & Kings (0.65 crore shares) were the other volume toppers in that order.
Cox & Kings clocked the highest turnover of Rs 279.29 crore on BSE. State Bank of India (Rs 190.48 crore), Tata Steel (Rs 116.60 crore), DLF (Rs 103.15 crore) and ICICI Bank (Rs 99.03 crore) were the other turnover toppers in that order.
Grey Market - DB Corp, Godrej Properties
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| MBL Infra | 165 to 180 | 5 to 6 |
| JSW Energy Ltd. | 100 | 3 to 4 |
| Godrej Properties | 490 | 7 to 9 |
| D. B. Corp. | 185 to 212 | 5 to 7 |
Market may edge lower on weak Asia
The market may edge lower on weak Asia. Meanwhile, rising inflation added to the case for monetary tightening. However, good advance tax numbers by India Inc in the third quarter may cap fallt.
Stocks-specific activity will hog the limelight today, 15 December 2009, with investors reacting to corporate advance tax payments data. Advance tax is paid in four installments in June, September, December and March, and is based on taxpayers' projected income, giving an indication of industry's performance in coming months.
Tata Motors paid Rs 100 crore in third quarter versus Nil same quarter last year. Mahindra & Mahindra paid Rs 195 crore versus Rs 4.5 crore (YoY) , Tata Steel paid Rs 650 crore versus Rs 260 crore Hindalco Industries paid Rs 100 crore versus Rs 40 crore Hindustan Unilever paid Rs 200 crore versus Rs 155 crore: Larsen & Toubro paid Rs 270 crore versus Rs 312 crore (YoY) Grasim Industries Q3 advance tax at Rs 150 crore versus Rs 75 crore, UltraTech pays Rs 90 crore versus Rs 65 crore (YoY) HDFC Q3 advance tax at Rs 320 crore versus Rs 280 crore: Bajaj Auto paid Rs 320 crore versus Rs 105 crore. The country's largest private sector company Reliance Industries paid Rs 850 crore, over 5 % increase over the year-ago period
The government's total spending will remain at Rs 1020000 crore ($218 billion) for the fiscal year to March 2010, same as the budget estimate made in July 2009, finance minister told parliament on Monday. Pranab Mukherjee also said the federal fiscal deficit in 2009/10 would remain within the targeted 6.8 % of gross domestic product.
The wholesale price index rose an annual 4.78 % in November, higher than estimates and October's 1.34 % rise, as food prices surged after the worst monsoon rains since 1972 and then flooding hurt crops. However, Finance Secretary Ashok Chawla said inflation was still below the central bank's forecast of 6.5 % for the end of the fiscal year next March.
While rising inflation has been mainly driven by a surge in food prices -- they were up an annual 16.71 % in November -- the index for manufacturing products, which accounts for almost two-thirds of WPI basket, rose 3.99 % in November from previous month's annual rise of 1.36 %.
Industrial output grew 10.3 % in October from a year earlier, on robust consumer demand and government stimulus spending, and annual economic growth of 7.9 % in the September quarter was the fastest in 18 months.
The central bank, which slashed banks' reserve requirements and cut its key lending rate by 425 basis points during the worst of the global crisis, began scaling back stimulus at its October policy review by removing some liquidity support measures. It left rates steady at October's review. The next review is in late January, but it can adjust monetary policy at any time.
Meanwhile, the initial public offer of DB Corp, India's second largest regional newspaper, was subscribed 2.45 times on the second day of issue on Monday, 14 December 2009. The company has set a price band of Rs 185-212 a share.
Asian stocks fell on Tuesday, as Chinese developers fell on speculation China's government will take more steps to curb property speculation. The key benchmark indices in China, Hong Kong, Japan, Indonesia, South Korea and Taiwan fell by between 0.01% to 0.89%. But, Singapore's Straits Times rose 0.25%.
US stocks closed at a 14-month high on Monday as news of the Exxon Energy deal and a lifeline for Dubai helped buoy investors' appetite for risk. The Dow rose 29.55 points, or 0.3%, to 10,501.05, highest close since 1 October, 2008. The S&P 500 index added 7.70 points, or 0.7%, to 1,114.11, highest finish since 2 October, 2008 and the Nasdaq composite index gained 21.79 points, or 1%, to 2,212.10.
Exxon Mobil gave a boost to the energy sector with its plans to buy natural-gas developer XTO Energy in an all-stock deal valued at $ 31 billion.
Citigroup Inc and Wells Fargo & Co said they were paying back funds to the U.S. government, in transactions that will end taxpayers' capital support of the biggest U.S. banks much sooner than had been expected just weeks ago.
A key event this week is a regular two-day meeting of the US Federal Reserve Meeting which begins on Tuesday, 15 December 2009. The Fed is expected to maintain its pledge to keep US interest rates close to zero for "an extended period" after Chairman Ben Bernanke warned that US economic recovery still faced "formidable headwinds", such as tight credit conditions and rising unemployment. Bernanke's re-appointment as chairman of the Federal Reserve by the Senate banking committee is expected on Thursday.
Investors, meanwhile, are increasingly wondering when Bernanke will signal any changes to the exceptionally loose US monetary policies and liquidity conditions that have propelled asset markets higher this year. US industrial production during November, the figures for which are due on Tuesday, is expected to rise 0.5%. This would slow the year-on-year decline from minus 7.1% in October to minus 5.4%.
US producer prices are expected to show the headline measure returning to positive territory for the first time in a year, with the year-on-year rate rising from minus 1.9% in October to a rise of 1.6%. US consumer price inflation is also likely to move into positive territory for the first time since February 2009, with the headline measure expected to rise from minus 0.2% in October to a rise of 1.8%. Core inflation, though, remains low and could sink below 1% next year following a sharp slowdown in labour costs.
Back home, a surge in headline inflation pulled the market lower on Monday, 14 December 2009 with bank shares leading the slide. The BSE Sensex fell 21.48 points or 0.13% to 17,097.55 on that day.
As per provisional figures on NSE, foreign funds bought shares worth Rs 62.27 crore and domestic funds bought shares worth Rs 108.92 crore on Monday.
Market to see flat-to-negative opening
Indian equities are likely to open flat to negative on Tuesday, December 15. SGX Nifty is trading at 5,111.50 (8.57 am), 9 points higher than Monday`s closing of 5,102.5.
Asian mining stocks rose after copper and platinum prices climbed. Japanese shipping companies declined after cargo rates dropped. Japanese benchmark index Nikkei 225 declined 33.12 points, or 0.33%, to trade at 10,072.56. China`s Shanghai Composite decreased 27.62 points, or 0.84% to trade at 3,275.28.
US stocks gained on Monday after Abu Dhabi`s USD 10 billion in aid to help Dubai avoid a default boosted appetite for riskier assets. The Dow Jones industrial average closed up 29.55 points, or 0.28%, at 10,501.05. The Standard & Poor`s 500 Index gained 7.70 points, or 0.70%, at 1,114.11. The Nasdaq Composite Index climbed 21.79 points, or 0.99%, at 2,212.10.
European stocks climbed led by financial shares after Abu Dhabi provided USD10 billion to avert a default by Dubai`s Nakheel PJSC. UK`s benchmark index FTSE 100 gained 53.77 points, or 1.02%, to end at 5,315.34.
Oil prices fell for the ninth straight day Monday, dipping below USD 70 per barrel on persistent concerns about high inventories and weak demand. Benchmark crude for January delivery fell 36 cents to settle at USD 69.51 on the New York Mercantile Exchange after falling as low as USD 68.59 earlier in the trading sesion.
Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
Daily News Roundup - Dec 15 2009
Reliance Industries, in its efforts to gain control over LyondellBasell, is looking to team up with the unsecured creditors and bond holders of the bankrupt Dutch petrochemicals giant. (BS)
Reliance Industries will decide today on submitting a financial bid to buy Lyondell-Basell, based on the outcome of the hearing by the Bankruptcy Court of New York South District of rescue plans proposed by the management team of the world’s third largest petrochemical company. (ET)
Government has revised the target to mop up around Rs110bn from the proposed divestment of 5% stake in utility giant NTPC as against the original target of around Rs82bn. (ET)
BHEL plans to acquire Hungary-based boiler maker TGR to establish a manufacturing facility in Europe. (FE)
SAIL said it was looking to raise the rates next month following a recovery in demand. (BS)
Coal India is not willing to hand over any coking coal mines to SAIL and Tata Steel but may explore opportunities to jointly develop such mines with the steel behemoths seeking to secure coking coal supplies. (FE)
The DLF board will meet today to consider the integration of DLF Assets Ltd with the real estate company. (BL)
Tata Motors said that it plans to finish deliveries of Nano by December next year. (BL)
Tata Motors launched the Sumo Grande MK II, which will replace the Grande MK I. (ET)
RCOM is looking to sell its undersea fibre optic network and US network businesses, hoping to raise around US$3bn in cash. (FE)
Tata Teleservices, RCOM and other private mobile telecom operators owe over Rs6bn to the government towards outstanding spectrum charges and licence fee for the last three years. (ET)
Delhi-based businessman Sanjay Dalmia and Indiabulls Financial Services have arrived at an out-of-the-court settlement of their legal dispute. (BS)
GMR Holdings, part of the diversified GMR Group, has completed the sale of its entire 20% stake in GMR Ferro Alloys to the Dubai-based Cronimet Mercon Invest Ltd. (BL)
GMR Group is in an advanced stage of talks with Temasek Holdings and ICICI Bank to raise Rs12bn to support the expansion plans of its power generation arm GMR Energy. (ET)
The Lok Sabha on Monday put its seal on merger of the State Bank of Saurashtra (SBS) with SBI. (FE)
Bank of Baroda plans to open a foreign branch in Auckland, New Zealand. (BL)
Suzlon Energy plans to complete its US$2.8bn refinancing by January end. (BS)
HDIL plans to raise Rs11.5bn via issue of long term nonconvertible debentures. (ET)
Parsvnath Developers plans to raise around Rs2.4bn by diluting its holdings to private equity funds in its various residential as well as commercial projects. (FE)
Future Capital Holdings has constituted a committee of directors to look into consolidation of the group’s retail financial services, undertaken through a few joint ventures. (ET)
Dabur plans to launch ready-to-cook products under its ‘Hommade’ brand. (ET)
After expanding its footprint in northern India, Indian Hotels, signed a management contract for a hotel in Srinagar with SAIFCO Hill Crest Hotels under the brand ‘Vivanta by Taj’. (BS)
Tata Group plans to construct 50 hotels of its no-frills chain, Ginger, in India over four years. (BS)
Shree Cement plans to raise around Rs1bn through external commercial borrowings. (FE)
European drug major, GlaxoSmithKline said its business strategies in emerging markets including India, will be driven by its supply partnerships with generic companies such as Dr Reddy’s here and Aspen of South Africa. (BS)
GlaxoSmithKline Consumer Healthcare has resumed operations at its plant in Dowlaiswaram, Andhra Pradesh, after the plant was temporarily shut down following unrest in the state. (BS)
Sun Direct announced its High Definition TV services with the launch of five HD channels along with regular standard definition channels already available through its Sun Direct service. (BL)
Suven Life Sciences secured two patents from the Canadian Intellectual Property Office for its New Chemical Entities for the treatment of neurodegenerative diseases. (BL)
LIC raised its stake in software firm 3i Infotech to 10.69%. (FE)
Pawan Kumar Ruia, owner of Dunlop India and Jessop, has acquired a 60% controlling stake in German firm, Henniges Automotive Grefrath, with its manufacturing facility in Grefrath (Germany) for an undisclosed sum. (ET)
ArcelorMittal India is yet to submit statutory forest and environment clearances for beginning mining of iron ore and manganese in West Singhbhum, Jharkhand. (BL)
Dewan Housing Finance will offer a fixed rate of 8% for the first two years for all new loans up to Rs0.5mn. (BL)
Locals have stepped up their agitation against Nirma Group’s proposed Rs25bn cement plant near Mahuva, Saurashtra. (BS)
Dishtv has re-introduced the set top box free offer on buying content of Rs1,990 till January 15. (BS)
Reliance Big TV has entered into a marketing alliance with Fox Star Studios for the India release of James Cameron's Avatar. (BL)
United Bank of India is likely to file a red herring prospectus with SEBI for their IPO next week. (BS)
United Bank of India has obtained licenses for opening 11 new branches in such unbanked gram panachayats. (BS)
Headline inflation rate surged to 4.78% for November, primarily due to rising prices of primary articles, especially food items. (BS)
Enthused by robust performance of the economy in the second half of 2009-10, Finance Minister said fiscal deficit would not exceed the target of 6.8% of the GDP. (BS)
The department of revenue plans to change the proposed direct tax code to exempt infrastructure companies from MAT for the first few years since they execute projects with long gestation periods. (BS)
Gujarat Electricity Regulatory Commission has directed Gujarat Urja Vikas Nigam Ltd and its affiliate power utilities to keep power tariffs unchanged and continue to levy existing tariff rates. (BS)
Bengaluru International Airport’s passenger traffic would top 9.3mn, higher by 22% yoy, in the calendar year 2009 with cargo handled during the 12 months estimated at 161,896 tons. (BS)
Bengaluru International Airport would add at least three international routes in the summer of 2010. (BL)
The much anticipated goods and services tax is unlikely to be introduced on April 1, 2010 as the process of constitutional amendment to bring the new indirect tax legislation may take another five months. (BS)
A Union finance ministry notification has extended the basic customs duty concession of 2.5% applicable on equipment for greenfield power projects to brownfield projects too, which is subject to 17% presently. (BS)
The government said bottlenecks in road transportation and movement of utilities had led to delays in capacity augmentation of the power sector during the first two years of the plan period. (BS)
India’s apparel exports fell by 17% yoy in October to US$603mn as the country lost market share to China, Vietnam and Bangladesh due to uncompetitive pricing of fabrics in the domestic market. (BS)
The Orissa government has decided to withdraw 2% concession in Central Sales Tax given to the small scale industries in the state. (BS)
Centre has approved the development of four sectors in Orissa - including granite, handicrafts, sponge iron and plastic - through the cluster approach under the Lean Manufacturing Competitiveness Scheme. (BS)
To improve the road communication in the rural areas, the Orissa government has decided to upgrade 10,000kms of rural roads in next three years. (BS)
Karnataka plans to add 6,000MW through renewable energy resources in the next four years. (BS)
Banks are exploring the option of increasing the sub-prime lending rate, mainly offered to companies, while keeping the benchmark prime lending rate untouched. (BS)
Tamil Nadu Government formally launched the Tamil Nadu Transmission Corporation the first step in the process of unbundling the operations of the Tamil Nadu Electricity Board. (BL)
India’s share in the global flow of FDI has almost doubled to 2.45% in 2008 compared to the previous year. (ET)
The government said exports from software technology parks increased 15.1% to Rs2trn in 2008-09. (FE)
The National Mission on Enhanced Energy Efficiency will be implemented from April 1, 2010 to create an energy efficiency market worth Rs 740bn over the next five years and resulting into an annual saving of about 23mt of oil. (FE)
Changing winds, keep adjusting!
A sailor without a destination cannot hope for a favorable wind.
The same holds true for stocks right now. The bulls appear to be suffering from some fatigue following a stellar rally from March lows. Notwithstanding the euphoria surrounding the Dubai bailout and US banks repaying federal aid, the market is likely to remain choppy. The Nifty will continue to struggle to pierce 5200, at least for the time being. It may however manage to cross that barrier before the F&O expiry.
In short, the consolidation phase is likely to prevail in the near term with a positive bias. Future advance will face hiccups at regular intervals as bulls lack conviction. Stay tuned to the latest events – local as well as global. Stick to stock-centric action. The advance tax numbers will have impact on specific stocks.
We see a flat to cautious start as Asian markets are subdued. Trading will swing to the beat of global cues. The Fed will start a two-day policy meeting today. Industrial output data for the US will be released later today. The UK CPI report is also due out today.
Hong Kong shares are down this morning, with Chinese property developers and banks coming under selling pressure after Beijing reportedly said that it will move to rein in the rapid rise in property prices in some cities.
Stocks rose across the globe on Monday as Abu Dhabi gave a $10 billion lifeline to the ailing Dubai to stave off a potential default of securities maturing. Citigroup became the last of the big Wall Street banks to exit the bailout program after reaching a deal to repay its remaining $20 billion of federal aid. Wells Fargo will pay back $25 billion TARP funds with $10.4 billion stock offering.
FIIs were net buyers in the cash segment on Monday at Rs622.7mn on a provisional basis. The local funds were net buyers of Rs1.09bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs1.18bn. FIIs were net buyers of Rs3.42bn in the cash segment on Friday. FIIs' net investments in Indian stocks this year have crossed $16bn.
US President Barack Obama called on the CEOs of the biggest banks in the US to take "extraordinary" steps to revive lending for small business and homeowners. Meanwhile, figures from the Chicago Mercantile Exchange show a reduction in the number of bets against the US dollar and suggest its downward trend might have ended. White sugar prices hit an all-time supported by signs that Asian countries are buying refined sugar to cover domestic shortfalls.
Stocks to watch out for: DLF, Godrej Consumer, Dhunseri Tea and South Asian Petrochem.
On Wall Street, US stocks gained on Monday, with the three leading indexes closing at 14-month highs, after Citigroup said that it will pay back government bailout funds and Dubai received $10 billion to cover its debt, easing worries that the Gulf emirate might default on billions of dollars in debt.
A weak dollar also helped, lifting commodity shares and the stocks of companies that do a lot of business overseas.
The Dow Jones Industrial Average rose 30 points, or 0.3%, closing at the highest point since Oct. 1, 2008. The S&P 500 index gained 8 points, or 0.7%, closing at the highest point since Oct. 2, 2008. The Nasdaq Composite rose 22 points, or 1%, closing at the highest point since Sept. 19, 2008.
After propelling the market off of 12-year lows hit in March, the S&P 500 has risen 64% as of Friday's close. The Dow closed at a 14-month high on Friday after better-than-expected reports on retail sales and consumer sentiment, but broader gains were limited by tech weakness and a strong dollar.
Citigroup said that it will return $20 billion in bailout money to the government through a combination of stock and debt offerings. Citi said the bulk of the payment will be funded through a $17 billion common stock offering. The company also said Treasury will sell up to $5 billion of the $25 billion in Citi common stock it holds shortly, and sell the rest of it over the next year.
President Obama met with top executives of some of the nation's biggest banks, including JPMorgan Chase, Bank of America and Wells Fargo. He said his main message to bankers was that banks received extraordinary assistance during the crisis, and now that the industry is back on its feet, it needs to reciprocate. He is expected to urge bankers to provide greater lending, cut back on bonuses and support financial reform efforts.
Dow component Exxon Mobil said it will buy XTO Energy in a $41 billion stock and debt deal that values XTO shares at a 25% premium to its Friday closing price. The deal also includes the assumption of $10 billion in debt. Exxon shares fell 4% and limited any gains on the Dow. XTO shares rallied 17%.
The dollar slipped versus the euro and the yen, turning lower after the recent rally. A weak dollar has added to the more than nine-month-old stock rally over the past nine months, giving a boost to dollar-traded commodities, as well as commodity shares and the stocks of companies that do business overseas. But so far in December, the dollar has been mixed or stronger, putting some pressure on stocks.
The weak dollar gave a lift to dollar-traded commodities. COMEX gold for February delivery rose $3.90 to settle at $1,123.80 an ounce. Gold closed at an all-time high of $1,218.30 an ounce earlier this month.
US light crude oil for January delivery fell 36 cents to settle at $69.51 a barrel on the New York Mercantile Exchange.
Treasury prices were little changed, with the yield on the 10-year note standing at 3.55%, unchanged from late on Friday.
European shares jumped, with banks advancing after debt-laden Dubai managed to obtain $10 billion in financing and stave off a potential bond default. The Dow Jones Stoxx 600 index rose 0.8% to 247.04, marking the third straight session of gains for the pan-European benchmark.
The UK FTSE 100 index climbed 1% to 5,315.34, the German DAX index rose 0.8% to 5,802.26 and the French CAC-40 index advanced 0.7% to 3,830.44.
Indian markets have been struggling for specific direction in the past few weeks and Monday was no different. The benchmark indices yet again ended on a flat note as markets continued to consolidate.
A flat start was followed by strong momentum after media reports flashed that Abu Dhabi agreed to help Dubai with a US$10bn injection, of which US$4.1bn was allocated to Dubai World to pay immediate obligations. Markets managed to hold on to their gains despite inflation jumped to 4.78% in November led by rising prices of food items as against 1.34% in October, 2009.
However, markets slumped sharply in the late trades after reports stated that Reliance Industries was concerned about LyondellBasell’s high debt, with the company’s lenders having hiked interest rates to about 12%.
The BSE Sensex ended marginally lower by 21 points at 17,097 after touching a high of 17,275 and a low of 17,048. The index opened at 17,118 against the previous close of 17,119. The NSE Nifty slipped 11 points to end at 5,105.
In Asia, the Nikkei in Japan ended flat, while Australia's S&P/ASX ended higher by 0.4%. Shanghai SE Composite was up 1.7% and Hang Seng index in Hong Kong was up 0.8%.
In Europe, stocks were trading higher. The DAX in Germany was up 1% and the CAC 40 index in France was up 0.7%. The FTSE in the UK was up 0.9%.
Coming back to India, among the BSE sectoral indices, the BSE IT index was the top gainer, adding 1.1%, followed by the Capital Goods index that was up 1% and the BSE Auto index was up 0.8%.
Major losers were BSE FMCG index down 1.4% and BSE Consumer Durables index down 1.8%.
The BSE Mid-Cap index ended marginally lower by 0.4% while the BSE Small-Cap index was down 0.5%.
Among the 30-components of Sensex, 17 stocks ended in the red and 13 ended in the positive terrain. Bharti Airtel, Hindustan Unilever, HDFC Bank, ITC and ICICI Bank were among the top laggards.
On the other hand, among the major gainers were ACC, Grasim, Wipro, BHEL and Infosys.
Outside the frontline indices, the big losers in the broader market were OBC, IVRCL Infra, Shriram Transport, Koutons, Titan and United Spirits. On the other hand, gainers included MMTC, Gujarat NRE, Nagarjuna Const and Madras Cement.
DLF announced that the board of directors of the company decided to meet on December 15, 2009, to consider integration of Caraf Builders & Constructions Pvt. together with its subsidiaries with DLF Cyber City Developers Ltd. engaged in the business of development and leasing of commercial properties.
Shares of DLF ended flat at Rs382. The scrip opened at Rs384 it touched an intra-day high of Rs386 and a low of Rs378 and recorded volumes of over 1.8mn shares on BSE.
Shares of BHEL advanced by 2% to end at Rs2409 after reports stated that the company’s unit plans to consider four-five companies as candidates for acquisition.
We are looking at investing Rs2.5-4bn for the acquisition, executive director, A V Krishnan was quoted as saying.
Last year, the unit acquired Bharat Heavy Plates and Vessels Ltd in Visakhapatnam, another public sector unit. "We are looking at a 100% take over and once it is acquired, it will become a subsidiary of BHEL," he added.
Reports also stated that the company is in talks with L&T and Pipavav Shipyard to jointly build off-shore oil rigs. The company had earlier decided to quit its deep water oil rig business as it was unable to find a suitable partner due to investment constraints, added reports.
RCom is reportedly planning to raise US$3bn in cash by selling its Flag and US Network business. Reports also added that the company’s spokesperson denied it as market rumors and speculations.
Shares of RCom erased early gains and ended lower by 1.3% at Rs181. The scrip opened at Rs181 it touched an intra-day high of Rs186.5 and a low of Rs180 and recorded volumes of over 2.3mn shares on BSE.
Suven Life announced that it secured 2 product patents from the Canadian Intellectual Property Office. Shares of Suven Life were locked at 5% upper circuit at Rs29.85. The scrip opened at Rs28.60 it touched an intra-day high of Rs29.85 and a low of Rs28.05 and has recorded volumes of over 0.11mn shares on BSE.
Parsvnath Developers surged by over 3% to end at Rs124 after the company announced that it will develop a residential site in Gurgaon, south of New Delhi, with SUN-Apollo, which will invest Rs750mn for a 50% stake in the venture. The scrip opened at Rs122 it touched an intra-day high of Rs129 and a low of Rs119 and recorded volumes of over 2mn shares on BSE.
Red metal inches up again
Falling dollar imparts shine to red metal
Copper prices rose at Comex for third straight day on Monday, 14 December, 2009. Prices rose as the dollar fell as news hit the wires that Abu Dhabi has committed to bail out Dubai out of its debt crisis.
At USA, copper futures for March delivery ended higher by 2 cents (0.6%) to 3.13 a pound. Last week, copper ended lower by 3.1%. Copper ended November 2009 higher by 6.6%. On a year to date basis, copper has climbed 116.6%.
On the London Metal Exchange, copper for delivery in three months ended higher by $12 (0.2%) at $6,912 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
In the currency market on Monday, the dollar index, which weighs the strength of dollar against a basket of six other currencies fell by almost 0.3%.
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 324.7/Kg. The closing price was Rs 0.85/Kg (0.3%) higher than previous closing price. Prices rose to a high of Rs 326/ Kg and fell to a low of Rs 322.2/Kg during the day's trading.
Among other metals traded in the LME on Monday, lead lost 0.3% to $2,322 a ton and zinc lost 0.5% to end at $2,318 a ton. Nickel added 0.7% to $16,750. Aluminium gained 1.8% at $2,284 a ton.
Crude witnesses longest losing streak in eight years
Prices continue to soften on demand worries
Crude prices extended its losing streak and ended lower for ninth straight day on Monday, 14 December, 2009. This was the longest losing streak for crude in almost eight years. Prices fell today on demand concerns despite agencies hiking their crude demand forecast in recent times . The slipping dollar limited crude's losses.
On Monday, crude-oil futures for light sweet crude for January delivery closed at $69.51/barrel (lower by $0.36 or 0.5%). The contract has lost almost 12% in the past nine sessions. During intra day trading, it rose to a high of $70.28. Last week, crude ended lower by 7.4%. Crude ended month of November, higher by 0.4%. In December, till now, crude has shed almost 9.5%.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 59% since then.
In the currency market on Monday, the dollar index, which weighs the strength of dollar against a basket of six other currencies fell by almost 0.3%.
On last Friday, Paris-based IEA, hiked its forecast for 2010 global oil demand by 130,000 barrels a day to an average 86.3 million barrels a day. That represents an increase of 1.7%, or 1.5 million barrels a day, compared to 2009. The IEA also left its forecast for 2009 oil demand virtually unchanged at 84.9 million barrels a day, a decline of 1.6% year-on-year.
Also, earlier last week, in the latest monthly report the EIA reported that it expects oil prices to average $76 a barrel this winter from October to March. The price target came just $1 lower than the previous month's forecast. The agency expects prices will dip to $75 early next year and will then rise to $82 a barrel by December 2010.
Among other energy products on Monday, January gasoline fell 1.49 cents, or 0.8%, to $1.8267 a gallon, January heating oil was nearly flat at $1.9082 a gallon.
But on Monday, January natural gas rallied 16.9 cents, or 3.3%, to $5.332 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 higher by Rs 5 (0.15%) at Rs 3,262/barrel. Natural gas for December delivery closed higher by Rs 2 (0.82%) at Rs 243.6/mmbtu.
Precious metals glitter after a long time
Prices inch up as the dollar slips
Bullion metal prices inched up on Monday, 14 December, 2009. Prices rose after quite some time as the dollar fell as news hit the wires that Abu Dhabi has committed to bail out Dubai out of its debt crisis.
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 Monday, gold for December delivery ended at $1,123.9 an ounce, higher by $3.9 (0.3%) an ounce on the New York Mercantile Exchange. Last week, gold shed 4.2%.
Gold ended November, 2009 higher by 13%. Before that, for the third quarter it ended higher by 8.7%. For the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year. On a year to date basis, gold price is higher by 28.3%.
On Monday, December Comex silver futures ended higher by 25 cents (1.5%) at $17.34 an ounce. Last week, silver ended lower by b7.6%.
In the currency market on Monday, the dollar index, which weighs the strength of dollar against a basket of six other currencies fell by almost 0.3%.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for February delivery closed higher by Rs 61 (0.36%) at Rs 17,025 per ten grams. Prices rose to a high of Rs 17,116 per 10 grams and fell to a low of Rs 16,956 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed Rs 179 (0.7%) higher at Rs 27,223/Kg. Prices opened at Rs 27,118/kg and rose to a high of Rs 27,347/Kg during the day's trading.
Gujarat NRE Coke
We recommend a buy in the stock of Gujarat NRE coke from a short-term perspective. It is visible from the charts of the stock that it has been on an intermediate-term uptrend from its March low of Rs 16.8, making higher peaks and troughs. However, in September the stock met with resistance around Rs 71 and has been since moving sideway in the range of Rs 60 and Rs 71. The stock has a significant long-term support at Rs 60. On December 14 the stock rebounded almost 5 per cent taking support just above this level, accompanied with high volume. We observe formation of a bullish engulfing candlestick pattern signalling short-term optimums. The stock's intermediate-term uptrend-line is in tact. The daily relative strength index (RSI) bounced from 40 level and is heading towards the bullish zone in the neutral region. Both the daily and weekly moving average convergence and divergence indicators are featuring in the positive territory. Our short-term forecast on the stock is bullish. We expect it to move up further until it hits our price target of Rs 73. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 62.
via BL
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