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Wednesday, December 16, 2009
Sensex ends in green; Tata Motors surges
The Sensex ended the volatile session with modest gains led by IT, teck, metal and auto stocks, while realty, banking and PSU stocks dipped. It opened flat with a loss of 10.21 points, at 16,866.95 on Wednesday following mixed global cues. The index continued to trade in red for the first half, touching a low of 16,777.94. Volatility was witnessed during the next half as the Sensex was gyrating between zone owing to alternative bouts of buying and selling to finally close in the green.
BSE Midcap and Smallcap index rose 0.22% and 0.34% respectively.
The Sensex ended the day with a gain of 35.61 points, or 0.21% at 16,912.77 after touching a high of 16,996.12 and a low of 16,777.94. The broad-based NSE Nifty climbed 9.00 points, or 0.18% at 5,042.05 after hitting a high of 5,067.25 and a low of 5,001.80.
European stocks advanced as the Dow Jones Stoxx 600 Index headed for a fifth day of gains, its longest winning streak since September. US stock-index futures rose. UK`s benchmark index FTSE 100 advanced 31.47 points, or 0.62%, to trade at 5,318.02. French benchmark index CAC 40 gained 35.17 points or 0.92% to trade at 3,869.88. Germany`s benchmark index DAX rose 74.54 points or 1.29% to trade at 5,886.55 (4.30 pm)
Asian stocks end on a negative note but Japanese banks advanced on speculation they`ll have at least a decade to implement stricter capital rules, and Chinese lenders fell after a regulatory official said bad loans pose a long-term risk. Japanese benchmark index Nikkei 225 gained 93.93 points, or 0.93%, to end at 10,177.41. Hong Kong`s Hang Seng fell 202.18 points, or 0.93%, to end at 21,611.74. China`s Shanghai Composite decreased 19.25 points, or 0.59% to end at 3,255.21.
Major gainers in the 30-share index were Tata Motors (3.08%), Mahindra & Mahindra (2.86%), Bharti Airtel (2.83%), Tata Steel (2.13%), Wipro (1.96%), and Tata Consultancy Services (1.84%).
On the other hand, Jaiprakash Associates (2.23%), State Bank Of India(1.29%), ITC (1.01%), Hindustan Unilever (0.66%), Bharat Heavy Electricals (0.61%), and Maruti Suzuki India (0.53%) were the major losers in the Sensex.
Overall market breadth was mixed. Out of the total 2,890 stocks traded at BSE, 1,411 advanced, 1,391 declined while 88 remained unchanged.
Among the sectoral indices, BSE IT which rose 1.64%, TECk climbed 1.59%, Metal rose 0.84%, Auto climbed 0.83% and HC rose 0.66%, while BSE Realty fell 1.21%, Bankex declined 0.56%, PSU declined 0.54%, FMCG fell 0.42%.
``The market looks little better than what it looked yesterday. The long term trend remains up. The market is expected to move in a range of 4,950 to 5,150,`` said Avinash Gupta, vice president, Research Equity, Bonanza Portfolio while commenting on the market outlook.
BSE Bulk Deals to Watch - Dec 16 2009
Scrip Code Company Client Name Deal Type * Quantity Price **
16/12/2009 505029 Atlas Cycle OPG SECURITIES P LTD B 32844 212.49
16/12/2009 505029 Atlas Cycle OPG SECURITIES P LTD S 32844 212.89
16/12/2009 505506 Axon Infotech ABSOLUTE LEASING & FINANCE PVT LTD B 12059 14.29
16/12/2009 505506 Axon Infotech MAMTA BHANDARI S 3450 14.18
16/12/2009 532230 Bengal Tea BINA S VORA S 47300 51.09
16/12/2009 532845 Bhagwati Banq PRIYAL INTERNATIONAL PVT LTD B 700000 47.28
16/12/2009 532845 Bhagwati Banq ADROIT TRADELINK PRIVATE LIMITED S 319816 46.90
16/12/2009 532845 Bhagwati Banq RAJYOG SHARE AND STOCK BROKERS S 266724 47.35
16/12/2009 532760 Deep Inds ARCADIA SHARE & STOCK BROKERS PVT. LTD B 115673 117.06
16/12/2009 532760 Deep Inds ARCADIA SHARE & STOCK BROKERS PVT. LTD S 119183 117.24
16/12/2009 532022 Filatex Fash SAGAR TEX CREATION PRIVATE LIMITED B 50000 15.10
16/12/2009 532022 Filatex Fash TODI SECURITIES PVT LTD S 37500 15.10
16/12/2009 511543 GSB Finance GSB SECURITIES PVT LTD B 50000 9.10
16/12/2009 511543 GSB Finance GSB SHARE CUSTODIAN SERVICES LTD S 50000 9.10
16/12/2009 507981 Jindal Hotels ABHISHEK VIJAYKUMAR SHAH B 165597 54.89
16/12/2009 507981 Jindal Hotels DYNAMIC STOCK BROKING INDIA PVT LTD B 44337 54.48
16/12/2009 507981 Jindal Hotels ABHISHEK VIJAYKUMAR SHAH S 262081 55.06
16/12/2009 507981 Jindal Hotels DYNAMIC STOCK BROKING INDIA PVT LTD S 44337 54.58
16/12/2009 524378 JMDE Pack BHUPENDRA MEHTA S 29908 3.22
16/12/2009 532950 Manjushree Techno CHANDRAPRAKASH RAMSI SARIA S 116211 38.26
16/12/2009 519560 Neha Intl B.K.KHULLAR & CO. B 783991 40.20
16/12/2009 519560 Neha Intl JASHWANT P. MAKWANA HUF B 400000 40.20
16/12/2009 519560 Neha Intl VINOD REDDY GADDAM S 1150000 40.20
16/12/2009 532045 Nexxoft Info VAISHALI M PATEL S 25053 17.38
16/12/2009 530605 Nova Petro REGENT FINANCE CORPORATION PVT. LTD. B 484455 18.02
16/12/2009 530605 Nova Petro JMP SECURITIES PVT LTD B 140051 16.47
16/12/2009 530605 Nova Petro DEEPAK BHAILAL DESAI B 145862 17.79
16/12/2009 530605 Nova Petro REGENT FINANCE CORPORATION PVT. LTD. S 484455 17.53
16/12/2009 530605 Nova Petro DEEPAK BHAILAL DESAI S 145915 17.95
16/12/2009 531496 Omkar Overseas ROHIT MANSUKHBHAI UNAGAR B 50000 39.00
16/12/2009 531496 Omkar Overseas OMPARKASH GUPTA B 29151 39.13
16/12/2009 531496 Omkar Overseas ALLIANCE CONSULTANCY B 100000 40.50
16/12/2009 531496 Omkar Overseas SAMIR DHIRUBHAI PUJARA S 88828 39.06
16/12/2009 531496 Omkar Overseas KRISHNADEVI OMKARMAL AGARWAL S 78256 40.50
16/12/2009 524372 Orchid Chem GENUINE STOCK BROKERS PVT. LTD. B 1000682 203.92
16/12/2009 524372 Orchid Chem SMART EQUITY BROKERS PRIVATE LIMITED B 357290 208.33
16/12/2009 524372 Orchid Chem MARWADI SHARES AND FINANCE LTD. B 415512 207.68
16/12/2009 524372 Orchid Chem OPG SECURITIES P LTD B 888771 206.56
16/12/2009 524372 Orchid Chem GENUINE STOCK BROKERS PVT. LTD. S 1000682 204.10
16/12/2009 524372 Orchid Chem SMART EQUITY BROKERS PRIVATE LIMITED S 357290 208.21
16/12/2009 524372 Orchid Chem MARWADI SHARES AND FINANCE LTD. S 417612 208.33
16/12/2009 524372 Orchid Chem OPG SECURITIES P LTD S 888771 206.71
16/12/2009 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA B 97002 32.11
16/12/2009 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA S 118012 32.01
16/12/2009 511585 Regency Trust POOJA BHARGAVA B 25000 13.70
16/12/2009 511585 Regency Trust ABHINAV BHARGAVA HUF B 25000 13.70
16/12/2009 511585 Regency Trust SRINJANI KAJARIA S 71600 13.99
16/12/2009 503205 Shree Ram Mills CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED B 325000 130.01
16/12/2009 503205 Shree Ram Mills MAVI INVESTMENT FUND LTD. S 325000 130.00
16/12/2009 512048 Splash Media BHROSEMAND COMMODITIES PVT. LTD. B 36684 485.25
16/12/2009 512048 Splash Media SUVUDHA SECURITIES PVT LTD S 59820 486.81
16/12/2009 533121 THINKSOFT DHARMSHI VASHRAM DESAI B 70493 294.26
16/12/2009 533121 THINKSOFT DHARMSHI VASHRAM DESAI S 70493 292.00
16/12/2009 531249 Well Pack Papers SHOBHNABEN R PARMAR B 32768 352.58
16/12/2009 531249 Well Pack Papers PANDYA YAMINIBEN M B 28155 341.52
16/12/2009 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR B 29697 348.45
16/12/2009 531249 Well Pack Papers SHOBHNABEN R PARMAR S 45546 353.43
16/12/2009 531249 Well Pack Papers PANDYA YAMINIBEN M S 35622 348.58
16/12/2009 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR S 30845 350.58
16/12/2009 530063 Yashraj Cont VASPARR SHELTER LTD B 70624 23.60
16/12/2009 530063 Yashraj Cont LOTUS GLOBAL INVESTMENTS LIMITED S 70000 23.60
NSE Bulk Deals to Watch - Dec 16 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
16-DEC-2009,AHMEDFORGE,Ahmednagar Forgings Ltd,MACQUARIE BANK LIMITED,BUY,783642,66.00,-
16-DEC-2009,ATLASCYCLE,Atlas Cycles (Haryana) Lt,OM INVESTMENTS,BUY,16674,212.06,-
16-DEC-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,4049688,50.58,-
16-DEC-2009,ITI,ITI Ltd.,PRAGYA EQUITIES PVT. LTD.,BUY,126827,43.40,-
16-DEC-2009,KERNEX,Kernex Microsystems (Indi,MBL & COMPANY LTD.,BUY,67772,128.82,-
16-DEC-2009,NOVA,Nova Petrochem Ltd,AANGI SHARES & SERVICES PVT. LTD,BUY,779531,17.93,-
16-DEC-2009,NOVA,Nova Petrochem Ltd,CPR CAPITAL SERVICES LTD.,BUY,311303,18.45,-
16-DEC-2009,NOVA,Nova Petrochem Ltd,DEEPAK B DESAI,BUY,167506,17.65,-
16-DEC-2009,NOVA,Nova Petrochem Ltd,JMP SECURITIES PVT LTD,BUY,164016,16.06,-
16-DEC-2009,NOVA,Nova Petrochem Ltd,MEET TRADELINK,BUY,249503,17.60,-
16-DEC-2009,NOVA,Nova Petrochem Ltd,VORA VILPABEN PRANAVBHAI,BUY,588807,17.94,-
16-DEC-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,GENUINE STOCK BROKERS PVT LTD,BUY,1101847,203.58,-
16-DEC-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,MARWADI SHARES AND FINANCE LIMITED,BUY,432825,208.46,-
16-DEC-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,NIRSHILP SECURITIES PVT. LTD.,BUY,388060,200.54,-
16-DEC-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,PRB SECURITIES PRIVATE LTD.,BUY,385066,210.84,-
16-DEC-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,TODI SECURITIES PVT. LTD.,BUY,596020,205.03,-
16-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,BUY,51374,291.68,-
16-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,REGENT FINANCE CORPORATION PVT. LTD.,BUY,139006,293.30,-
16-DEC-2009,VALECHAENG,Valecha Engineering Limit,INDIA MAN FUND (MAURITIUS) LTD. DEUTSCHE BANK,BUY,100000,105.50,-
16-DEC-2009,AHMEDFORGE,Ahmednagar Forgings Ltd,RAPID ESTATES PVT. LTD.,SELL,691000,66.04,-
16-DEC-2009,ATLASCYCLE,Atlas Cycles (Haryana) Lt,OM INVESTMENTS,SELL,16674,212.19,-
16-DEC-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,4026048,50.68,-
16-DEC-2009,ITI,ITI Ltd.,PRAGYA EQUITIES PVT. LTD.,SELL,126827,43.55,-
16-DEC-2009,KERNEX,Kernex Microsystems (Indi,MBL & COMPANY LTD.,SELL,67772,129.10,-
16-DEC-2009,NOVA,Nova Petrochem Ltd,AANGI SHARES & SERVICES PVT. LTD,SELL,779531,17.09,-
16-DEC-2009,NOVA,Nova Petrochem Ltd,AVIVA INDUSTRIES LTD,SELL,206000,16.01,-
16-DEC-2009,NOVA,Nova Petrochem Ltd,CPR CAPITAL SERVICES LTD.,SELL,281303,18.58,-
16-DEC-2009,NOVA,Nova Petrochem Ltd,DEEPAK B DESAI,SELL,156949,17.76,-
16-DEC-2009,NOVA,Nova Petrochem Ltd,JMP SECURITIES PVT LTD,SELL,156512,16.16,-
16-DEC-2009,NOVA,Nova Petrochem Ltd,MEET TRADELINK,SELL,249503,16.05,-
16-DEC-2009,NOVA,Nova Petrochem Ltd,MILLENNIUM INFOSOFT PVT LTD MILLENNIUM INFOSOFT,SELL,1150000,17.88,-
16-DEC-2009,NOVA,Nova Petrochem Ltd,VORA VILPABEN PRANAVBHAI,SELL,552034,18.06,-
16-DEC-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,GENUINE STOCK BROKERS PVT LTD,SELL,1101847,203.60,-
16-DEC-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,MARWADI SHARES AND FINANCE LIMITED,SELL,434925,207.66,-
16-DEC-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,NIRSHILP SECURITIES PVT. LTD.,SELL,528760,201.28,-
16-DEC-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,PRB SECURITIES PRIVATE LTD.,SELL,389266,211.84,-
16-DEC-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,TODI SECURITIES PVT. LTD.,SELL,596020,205.40,-
16-DEC-2009,SUPREMEINF,Supreme Infrastructure In,UPSURGE INVESTMENT AND FINANCE LIMITED ,SELL,72620,160.12,-
16-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,SELL,51379,292.09,-
16-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,REGENT FINANCE CORPORATION PVT. LTD.,SELL,139006,291.00,-
16-DEC-2009,VALECHAENG,Valecha Engineering Limit,MACKERTICH CONSULTANY PVT. LTD.,SELL,100000,105.50,-
Sensex caught in volatility
Today's major news
Tata Steel's Corus gets French rail contract; the stock surged by 2.13%.
Hospira to buy Orchid Chemicals and Pharmaceutical’s unit for $400 million; the stock tumbled 10.35%.
Mahindra & Mahindra acquires stake in two Australian aerospace companies; the stock jumps 2.86%.
Ipca's anti-malarial fixed dose combination pre-qualified by the World Health Organisation; the stock rises 2.70%
Gitanjali Gems acquires 76% stake in Salasar Retail; the stock ends the day 2.12% higher.
Post-market summary
Global signals
European stocks extended their gains in morning trades on Wednesday with banking stocks at forefront; FTSE was trading at 5330, higher by 0.84%, at the time of filing this report.
Among Asian indices, Nikkei, Straits Times and Jakarta Composite closed higher, while Kospi, Hang Seng and Shanghai Composite ended lower. Japan’s Nikkei closed at its 7-week high. SGX Nifty ended the day 39 points higher.
US stock futures opened with marginal gains on Wednesday as all eyes are set on Federal Reserve meet, as investors expect the central bank to stick to its loose monetary policy.
Indian indices
On mixed cues and leads from markets overseas, Sensex opened flat, about 10 points lower, at 16867. Witnessing high it swung by 200 points touching the day’s high of 16996 and the low of 16777. At 1530 hours, the index was 35 points higher at 16877. The NSE benchmark Nifty closed the day only nine points higher at 5042 .
Sensex sentiment
The market breadth was slightly tilled in favour of advancing stocks. Of the 2,890 stocks on the BSE, 1,411 stocks advanced whereas 1,391 stocks fell. Eighty eight stocks closed unchanged.
Sectoral & stock screening
Lacking direction, most of the sector indices ended almost flat. Information technology stocks have been back in the news for some days and the sector index BSE IT was up by 1.64%-- the highest for any index—for the day. BSE TECk was at No 2 slot, rising by 1.59% during the session. BSE Realty was at the bottom of index list posting a loss of 1.21%.
The stocks making news today include Praj Industries that surged by 5.94%, followed by Sterling Biotech that rose by 5.90% and Nagarjuna Construction Company that jumped by 5.43%. Lanco Infrastructure slid 3.81% followed by Indiabulls Real Estate that fell by 3.64% and See Entertainment that shed 3.07%.
Viewing volumes
Wind power company Suzlon Energy was the most traded share with over 1.10 crore shares changing hands on BSE followed by financial institution catering to Industries Industrial Finance Corporation of India (IFCI; 1.10 crore shares), India’s second largest realty company Unitech (0.77 crore shares), leading integrated steel maker Ispat Industries (0.41 crore shares) and world’s sixth largest steel maker Tata Steel (0.32 crore shares).
Asian Markets wrap up Wednesday mixed
Shanghai, Seoul, Taiex, Hang Seng ends lower while Sensex, Strait Times finish higher
Stock markets in Asian region continued to exhibit the mixed trend on Wednesday, 16 December 2009, as investors turns more cautious as they choose to for the outcome of the two-day U.S. Federal Reserve meet. Though stocks rebounded in some parts of the region after trading lower, the undertone remains somewhat cautious.
On Wall Street, stocks finished lower as investors absorbed data showing wholesale inflation and the manufacturing picture muddled. The Dow Jones Industrial Average fell by 49 points, or 0.5%, to 10,452 and the S&P 500 went lower by 6 points, or 0.6%, to 1108. The Nasdaq declined by 11 points, or 0.5%, closing at 2201.
In the commodity market, crude oil rose for a second day before a report forecast to show that U.S. crude inventories declined last week.
Crude oil for January delivery gained as much as 59 cents, or 0.8 percent, to $71.28 a barrel in electronic trading on the New York Mercantile Exchange. It was at $71.14 at 9:02 a.m. London time.
Brent crude oil for January settlement was at $72.64 a barrel on the London-based ICE Futures Europe exchange, up 59 cents, at 8:58 a.m. London time. Yesterday, the contract rose 16 cents to settle at $72.05 a barrel.
Gold gained in Asia, paring earlier losses, as the dollar's rally paused amid investor concern inflation may accelerate, boosting interest in the metal as a store of value. Gold for immediate delivery gained 0.2% to $1,127.13 an ounce by 3:17 p.m. in Singapore, after falling as much as 0.3% earlier. February-delivery bullion on the Comex division of the New York Mercantile Exchange was up 0.4% at $1,127 an ounce.
In the currency market, US dollar remained firm across the board as market awaits FOMC statements today. The stronger-than-expected employment report in November triggered speculations that the Fed will hike its policy rate earlier than previously anticipated, which led to a fight back in the dollar.
The Japanese yen softened against the major currencies today. Japan's currency was quoted at 89.48 yen per dollar, up from Tuesday's quote of 89.12 yen
The Hong Kong dollar was trading at HK$ 7.7538 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 stumbled after the Reserve Bank said local interest rates might not need to rise as far as earlier thought because of rising loan rates. Striking an unexpectedly dovish note, the Reserve Bank of Australia's Deputy Governor Ric Battellino today said overall monetary policy stance was back in the normal range as interest rates in the economy have outpaced rises in the official cash rate.
The dollar tumbled to $US0.8987 at the local close, breaking a support level at $US0.9000 where option barriers were also seen. It had traded at $US0.9125 here at yesterday's close.
In Wellington trade, the NZ dollar gained against the Australian dollar today after Reserve Bank of Australia (RBA) deputy governor Ric Battellino said the overall stance of Australian monetary policy was back in a normal range. The NZ dollar went for a ride lower as well to US71.76c at 5pm from US72.64c yesterday.
The South Korean won closed at 1,164.9 won to the greenback, down 3.4 won from Tuesday's close, as falls in U.S. stock markets and uncertainty about the U.S. Fed's rate decision increased demand for safer assets.
The Taiwan dollar weakened against the greenback. The Taiwan dollar was trading lower against the US dollar at NT$ 32.3280, 0.04700 down from Tuesday's close of NT$32.2810.
In equities, Asian shares were mostly lower after negative cues from Wall Street and due to some caution ahead of the Federal Reserve's meeting outcome, but banks in Japan surged on the prospect of a more relaxed timetable for the introduction of stricter capital requirements.
In Japan, shares market surged with strong lead from banks and financials after news report that tougher new capital-adequacy rules for banks might be delayed by at least ten years. Buy orders flooded mega banks from the outset on hopes that anticipated tougher capital adequacy rules won't be implemented any time soon. Shares of real estate issues soared on speculation lending capacity will expand on the banking sector's improvement. Weakness in the yen against greenback overnight also helped support the electronics and automakers.
At the closing bell, the Nikkei 225 Stock Average index was at 10,177.41, soared up 93.93 points or 0.93% from its previous close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange surged 13.66 points, or 1.54%, to 898.29.
On the economic front, the ministry of Economy, Trade & Industry reported that the tertiary activity index rose a seasonally adjusted 0.5% month-on-month in October, reversing the downwardly revised 0.6% decrease in the previous month. On a yearly basis, the tertiary industry activity index slid 4.3% in October, slower than the 4.7% decrease in the preceding month.
In Mainland China, share market finished the session lower, weighed down on worries about liquidity tightening due to a slew of heavy new share supplies. Banks and financials declined after regulatory official said bad loans pose a long-term risk and the prospects of China cooling its lending binge. Properties shares were remain under pressure amid persistent fears that China's measures to cool its red-hot real estate market. Beijing said Tuesday it would boost the supply of affordable public housing and redevelop slum areas to rein in an overly rapid increase in property prices in some cities.
At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, slid 19.25 points, or 0.59%, to 3,255.21, meanwhile the Shenzhen Component Index on the smaller Shenzhen Stock Exchange dropped 1.16% or 160.87 points, to 13,664.97. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, slumped 0.63%, to 3,560.72.
In Hong Kong, the benchmark index stumbled with steep losses across the board, on tracking weak cues from Wall Street overnight and mainland market. Financials and properties shares suffered huge sell orders amid persistent fears that China's measures to cool its red-hot real estate market and as China Banking Regulatory Commission said bad loans pose a long-term risk. Energy shares were lower amid lingering worries over the economy and the immediate future of energy demand. Materials and industrials shrank as metal prices closed mixed yesterday in London.
At the closing bell, the Hang Seng Index stumbled 202.18 points, or 0.93%, to 21,611.74, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, shrank 175.56 points, or 1.36%, to 12,691.43.
In Australia, the market finished the session modestly lower, after GDP figures showing economic growth were softer than expected in the third quarter, despite a bright start to the day that saw the market above the line at lunch. Banking stocks finished the day mostly lower, led by Westpac. Mining and industrial stocks weighed the most following consistent declines from the heavyweights. Gold miners slipped after the price of precious metal fell once again.
At the closing bell, the benchmark S&P/ASX200 index slipped 11.6 points, or 0.25%, to 4,661.9, meanwhile the broader All Ordinaries dropped 11.70 points, or 0.25%, to 4,676.1.
On the economic front, the Australian Bureau of Statistics said today that real gross GDP rose seasonally adjusted 0.2% in the September quarter. For non-farming GDP grew 0.3%, while terms of trade rose 1% and real gross domestic income increased 0.4%. Meanwhile, the Westpac-Melbourne Institute leading index of economic activity showed a 6.7% annualised growth rate in October.
In New Zealand, benchmark index ended in the positive region for the second consecutive session. The NZX50 increased 0.48% or 15.19 points to 3132.30. The NZX 15 advanced 0.49% or 27.99 points to close at 5701.31.
In South Korea, stocks closed lower as investors took a breather ahead of a key rate decision from the U.S. Federal Reserve. The benchmark Korea Composite Stock Price Index (KOSPI) inched down 1.61 points to 1,664.24, snapping a five-day winning streak.
In Singapore, the share market defied the weakness on the Wall Street with a rise, with positive performance in commodities producers and financials. Palm oil producers climbed after the crude palm oil for February delivery added 2.2% in Kuala Lumpur today. Properties stocks declined on tracking Chinese peers which fell as the prospects of China cooling its lending binge. At the closing bell, the blue chip Straits Times Index was at 2,813.93.
In Taiwan, stock market resumed its losing streak as technology shares tracking losses on Wall Street as concerns over inflation and technology demand spread. The benchmark Taiex share index broadened losses for the second session on Wednesday, by finishing the day lower by 56.02 points or 0.72% at 7751.60 breaching the 7800 level.
In Philippines, the stock market closed lower, despite the expectations that the central bank is likely to keep its policy rates lower when it meets tomorrow with inflation unlikely to be a problem in the short term. Investors became cautious amid a worsening economic landscape following the disappointing full-year outlook for the Philippines given by ADB. All the sectors failed to record any gain except for the property and industrial index, which limited the losses registered by the composite index. At the final bell, the benchmark index PSEi lost 0.46% or 14.20 points to 3,032.37, while the All Shares index tumbled 0.15% or 2.86 points to 1,893.64.
In India, the key benchmark indices surged in a highly volatile trade as European stocks and US index futures rose. Heavy bidding by foreign funds to the initial public offer of print media firm DB Corp also underpinned sentiment. The BSE Sensex was up 35.61 points or 0.21% to 16912.77. The S&P CNX Nifty was up 9 points or 0.18% to 5,042.05.
Elsewhere, Malaysia's Kula Lumpur Composite index finished slightly lower at 1269.03 while stock markets in Indonesia's Jakarta Composite index inched up 27.81 points ending the day higher at 2522.54.
In other regional market, British builders rallied in a faintly higher Europe stock market, as a broker's belief that a double-digit recession won't materialize drove up the sector. Of the major benchmarks in Europe, the U.K. FTSE 100 rose 0.8% or 40.72 points to 5,326, the German DAX added 1.4% or 79.36 points to 5,890 and the French CAC 40 rose 1.1% or 41.59 points to 3,876.
Turnover jumps
Nifty December 2009 futures at premium
Nifty December 2009 futures were at 5,057.80, at a premium of 15.75 points as compared to the spot closing of 5,042.05. Turnover in NSE's futures & options (F&O) segment surged to Rs 76,131.29 crore, from Rs 69,721.45 crore on Tuesday, 15 December 2009.
Tata Steel December 2009 futures were at premium at 561.40 compared to the spot closing of 560.
Orchid Chemicals & Pharmaceuticals December 2009 futures were near spot price at 196.85 compared to the spot closing of 196.65.
Infosys Technologies December 2009 futures were at discount at 2,535.95 compared to the spot closing of 2,554.
In the cash market, the S&P CNX Nifty rose 9 points or 0.18% at 5,042.05.
IT stocks lead intraday rebound
The key benchmark indices ended a volatile trading session on a firm note as European stocks and US index futures rose. Heavy bidding by foreign funds to the initial public offer of print media firm DB Corp also underpinned sentiment. The BSE Sensex rose 35.61 points or 0.21%, up close to 135 points from the day's low and off close to 85 points from the day's high.
Index heavyweight Reliance Industries cut intraday losses. IT and metal stocks rose. But, banking and realty stocks fell. The market breadth was positive
Intraday volatility was immense. After an initial slide, the market soon moved into positive zone following heavy bidding by foreign funds to the initial public offer of print media firm DB Corp. However, the intraday rebound proved short-lived. The market once again slipped into the red later. The market cut losses after hitting a fresh intraday low in morning trade. The market once again regained positive territory in early afternoon trade. The market slipped into the red after hitting fresh intraday high in early afternoon trade. The market surged in mid-afternoon trade. The market regained strength after falling into the red for a brief period in late trade.
India VIX, a volatility index based on the S&P CNX Nifty index option prices, declined 3.39% at 27.36. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days
The initial public offer (IPO) of DB Corp, India's second largest regional newspaper, was subscribed a massive 39.54 times. The issue closed on Tuesday, 15 December 2009. The institutional investors category was bid 68.5 times with foreign institutional investors (FIIs) making a beeline for the IPO. FIIs bid for 30.67 crore shares, as compared to 76.33 lakh shares reserved for the institutional investors category as a whole. The strong response by foreign funds indicates that global liquidity remains ample.
Trade Minister Anand Sharma said on Wednesday exports growth is sustainable in the coming months. The exports broke their fall in November 2009 after 13 months of decline, adding to the flurry of positive economic data, but the news was greeted with caution by policymakers and exporters. Helped by Christmas buying, exports grew 18.3% to $13.2 billion in November from a small base last year.
On Tuesday, Moody's Investors Services raised its rating outlook on India's local currency to positive from stable, saying the move 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.
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.
The Reserve Bank of India (RBI) may tighten monetary policy in this month as inflation could rise to near 7% in March 2010, the prime minister's economic adviser, C. Rangarajan, was quoted as saying by an internet portal. "By the end of December, they can review the situation and take action... it could come by end of December depending how the prices have behaved in December," Rangarajan was quoted as saying. "By the end of March 2010, it (inflation) could be close to seven per cent," he said. "Usually there is a seasonal decline... but certainly it appears that inflation by end of March will be higher than what has been projected earlier by the RBI," he said.
The government will take steps to tame rising prices and enable the economy to recover faster, Finance Minister Pranab Mukherjee said on Tuesday, as concerns about inflationary pressures spilling over to the broader economy mount. Mukherjee also said the government intends to push tax reforms and cut its already-bloated fiscal deficit to 3% of gross domestic product after 2011/12 fiscal year, from 6.8% estimated for the current financial year ending March 2010.
Inflation and high fiscal deficit are major risks to the government's ambitious plan to ratchet up economic growth back to 9% level seen between 2005/06 and 2007/08. Latest government data shows food inflation at 16.7% in November 2009, which have pushed the headline inflation to 4.78%.
Meanwhile, 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.
Abu Dhabi's $10 billion financial aid to fellow United Arab Emirates member Dubai to meet debt obligations was in the form of bonds, the UAE foreign minister Sheikh Abdullah bin Zayed al-Nahayan said in remarks to the Jordanian state news agency. "They are debt instruments that would be paid back and carry interest just like loans."
European shares rose on Wednesday, with banks among the strongest performers, ahead of the Federal Reserve's interest rate decision and statement. The key benchmark indices in France, Germany and UK rose by between 0.5% to 1.2%.
The Markit flash euro-zone manufacturing purchasing managers index rose to a 21-month high of 51.6 in December 2009, up from 51.2 in November, while the services purchasing managers index rose to a 25-month high of 53.7 in December from 53 in November 2009.
Euro-area annual inflation was 0.5% in November, compared to the 0.1% drop in consumer prices in October, according to data released by Eurostat on Wednesday. The 0.1% monthly rise was smaller than the 0.2% advance economists expected. Rising alcohol and tobacco prices offset declines from food and housing.
Asian shares were mostly lower on Wednesday after negative cues from Wall Street and due to some caution ahead of the Federal Reserve's meeting outcome. The key benchmark indices in China, Hong Kong Singapore and South Korea were down by between 0.1% to 0.93%. But, the key benchmark indices in Indonesia and Japan were up by between 0.54% to 1.11%.
New global capital-adequacy rules for large banks may be delayed by at least a decade during a transition period, according to a Japanese news report Wednesday. The Nikkei business daily said in an unsourced report that the Swiss-based Basel Committee on Banking Supervision will stick to its plan to gradually introduce the new, stricter capital standards starting in 2012, but will establish a transition period of 10-20 years. The proposed changes include raising the current 8% minimum capital ratio and focusing on a narrower definition of core capital, the report said.
Trading in US index futures indicated Dow could gain 50 points at the opening bell on Wednesday, 16 December 2009.
US markets snapped a four-day winning streak on Tuesday as an inflation report stoked interest rate fears. General Electric delivered a weak outlook. GE told investors that it expects revenue to be flat next year. The Dow was down 49.05 points, or 0.5%, to 10,452. The S&P 500 index was down 6.18 points, or 0.6%, to 1,107.93, and the Nasdaq Composite Index was down 11.05 points, or 0.5%, to 2,201.05.
In important macro data from the US, inflation at the wholesale level surged 1.8% in November 2009, reflecting price jumps in energy and other products. The jump in inflation comes as the Federal Reserve kicked off a two-day monetary-policy meeting. Production climbed 0.8% in November 2009 in the US, the fourth gain in the past five months, the Federal Reserve said yesterday in Washington.
Federal Reserve Chairman Ben Bernanke, in a response to a lawmaker's questions made public on Tuesday, said the US economy currently has a high degree of slack, which should help keep inflation contained. The bulk of the evidence indicates that resource slack is now substantial, Bernanke said in written responses to questions from Senator Jim Bunning of Kentucky that were posted on the senator's website. "I continue to expect slack resources, together with the stability of inflation expectations, to contribute to the maintenance of low inflation in the period ahead," Bernanke said
Investors 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. Meanwhile, Bernanke's re-appointment as chairman of the Federal Reserve by the Senate banking committee is expected on Thursday.
The BSE Sensex rose 35.61 points or 0.21% to 16912.77. The Sensex rose 118.96 points at the day's high of 16996.12 in mid-afternoon trade. The Sensex fell 99.22 points at the day's low of 16774.94 in morning trade.
The S&P CNX Nifty rose 9 points or 0.18% to 5,042.05. Nifty December 2009 futures were at 5,057.80, at a premium of 15.75 points as compared to the spot closing of 5,042.05. Turnover in NSE's futures & options (F&O) segment surged to Rs 76,131.29 crore from Rs 69,721.45 crore on Tuesday, 15 December 2009.
The market breadth, indicating the overall health of the market was positive. On BSE, 1410 shares advanced as compared with 1390 that declined. A total of 90 shares remained unchanged. The breadth was weak in early trade.
Among the 30-member Sensex pack, 16 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 7265.46 points or 75.31% in calendar year 2009, as on 16 December 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8752.37 points or 107.25% as on 16 December 2009.
Coming back to today's trade, the BSE Mid-Cap index rose 0.22% and the BSE Small-cap index rose 0.34% Both the indices outperformed the Sensex.
The sectoral indices on BSE showed a mixed trend. The BSE IT index (up 1.64%), the BSE Teck index (up 1.59%), the BSE Metal index (up 0.84%), the BSE Auto index (up 0.83%), the BSE Healthcare index (up 0.66%) outperformed the Sensex.
The BSE Realty index (down 1.21%), the BSE Bankex (down 0.56%), the BSE PSU index (down 0.54 %), the BSE FMCG index (down 0.42%), the BSE Oil & Gas index (down 0.3%), the BSE Consumer Durables index (down 0.28%), the BSE Power index (down 0.08%), the BSE Capital Goods index (up 0.17%), underperformed the Sensex.
India's largest private sector firm by market capitalisation Reliance Industries (RIL) fell 0.42% to Rs 1046.95. The stock came off the day's low of Rs 1038.10. Reliance Industries' efforts to buy a controlling stake in bankrupt petrochemical maker LyondellBasell has reportedly got a bit complicated, as the Netherlands-based company submitted a new reorganisation plan to a court in the US, even as the Indian company evaluates a binding bid.
The new plan of Lyondell to emerge from bankruptcy through a rights issue and payment of its huge debt does not preclude Reliance from proceeding with its plans.
Metal stocks rose, reversing intraday losses. JSW Steel, National Aluminum Company, Sterlite Industries, rose by between 0.41% to 2.81%.
India's largest aluminum maker by sales Hindalco Industries rose 1.02% after gaining 1.07% on Tuesday. The company paid Rs 100 crore as advance tax in third quarter versus Rs 40 crore same quarter last year.
India's largest steel maker by sales Tata Steel rose 2.13% as the company's European unit Corus secured a 350 million euro contract to supply rails tracks to French railway operator SNCF. The company paid Rs 650 crore as advance tax in third quarter versus Rs 260 crore same quarter last year.
IT stocks rose for the third 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 third largest software services exporter Wipro rose 1.96%. Its ADR rose 0.25% on Tuesday. India's largest IT exporter by sales Tata Consultancy Services rose 1.84% as company's Q3 advance tax surged to Rs 177 crore from Rs 129 crore.
India's second largest software services exporter Infosys Technologies rose 1.53% Infosys Technologies expects revenue growth in the fiscal year starting in April to be better than 2009/10 as a recovery in the global economy spurs investments by its clients, Subhash Dhar, senior vice-president and head of global sales and marketing said. Its ADR fell 0.17% on Tuesday.
India's top truck maker by sales Tata Motors rose 3.08% 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) rose 2.86% after company paid Rs 195 crore as advance tax in third quarter versus Rs 4.5 crore same quarter last year. M&M said. M&M has forayed into the aerospace business by acquiring majority stakes in two Australian companies, Aerostaff Australia and Gippsland Aeronautics. Mahindra Aerospace (MAPL), in which Kotak Private Equity has also invested Rs 150 crore, will hold 75 % stake in each of the two Aussie companies. The remaining will be held by the existing managements. The payments will be made in installments.
Realty stocks fell on profit taking. India's largest realty player by market capitalization DLF fell 0.42%. The DLF board on Tuesday approved the integration of DLF Cyber City, DLF's subsidiary engaged in rental businesses, with Caraf Builders & Constructions. DLF will own 60% of the integrated entity while promoters will hold the remaining 40%. Caraf is the holding company of DLF Assets (DAL) and has 96% economic interest in the company. DLF Assets owns 4 SEZ properties with total leased area of 6.4 million square feet.
Among other realty stocks, Indiabulls Real Estate, Unitech and Ackruti City fell by between 0.5% to 3.64%.
Banking shares fell on a likely monetary tightening by the RBI. India's second largest private sector bank by net profit HDFC Bank was down 0.36%. The bank's Q3 advance tax jumped to Rs 400 crore versus Rs 300 crore.
India's largest bank by net profit and branch network State Bank of India was down 1.29%. 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 0.25% as bank's Q3 advance tax fell to Rs 301 crore from Rs 625 crore. Its ADR fell 4.13% on Tuesday. 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 FMCG maker by sales Hindustan Unilever fell 0.66% 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 ITC fell by between 0.12% to 1.53%.
India's largest mobile services provider by sales Bharti Airtel gained 2.83% on reports the company is set to buy a 70% stake for $900 million in Bangladesh's fourth-biggest telecom company Warid Telecom. The stock was the major gainer from the Sensex pack.
Among other telecom stocks, Reliance Communications, Idea Cellular and Spice Communications rose by between 0.14% to 3.17%.
India's largest thermal power generator by sales NTPC fell 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 0.14% to 0.89%.
Shares of state-run oil-marketing companies declined, after crude oil prices rose nearly 2% on the New York Mercantile Exchange on Tuesday, 15 December 2009. Bharat Petroleum Corporation (BPCL) (down 0.95%), Hindustan Petroleum Corporation (HPCL) (down 1.45%) and Indian Oil Corporation (IOC) (down 2.05%) edged lower. Light, sweet crude oil rose $1.18, or 1.7%, to $70.69 a barrel on the New York Mercantile Exchange, on Tuesday, 15 December 2009 after the Organization of the Petroleum Exporting Countries (OPEC) raised its forecast for global oil demand for next year. Rise in crude oil prices will increase under-recoveries of state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.
Auto stocks were trading mixed. India's largest small car maker by sales Maruti Suzuki India fell 0.53%. Suzuki Motor Corp and Volkswagen AG will start detailed discussions over joint projects after 10 January 2010, Suzuki CEO Osamu Suzuki said on Wednesday. Japan's Suzuki Motor said on 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.
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 0.45%. 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 0.74%. 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.
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 0.1% extending Tuesday's fall even as 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, Bharat Heavy Electricals, SKF India, BEML fell by between 0.12% to 0.81%.
India's largest cement maker by sales ACC rose 1.16% even 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 rose by between 0.98% to 2.06%.
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.
Airline stocks rose on reports domestic carriers have reported a 29.8% increase in traffic for the month of November, compared to the same period last year. King Fisher Airline, SpiceJet and Jet Airways rose by between 0.82% to 7.2%.
Cals Refineries clocked highest volume of 1.2 crore shares on BSE. Suzlon Energy (1.1 crore shares), IFCI (1.1 crore shares), Orchid Chemicals & Fertilisers (0.95 crore shares) and Austral Coke & Projects (0.81 crore shares) were the other volume toppers in that order.
Orchid Chemicals & Fertilisers clocked the highest turnover of Rs 188.46 crore on BSE. Tata Steel (Rs 180.28 crore), State Bank of India (Rs 147.04 crore), ICICI Bank (Rs 117.80 crore) and Suzlon Energy (Rs 89.58 crore) were the other turnover toppers in that order.
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Grey Market Premium - DB Corp, Godrej Properties
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| MBL Infra | 165 to 180 | 3 to 5 |
| JSW Energy Ltd. | 100 | 2 to 3 |
| Godrej Properties | 490 | 4 to 5 |
| D. B. Corp. | 185 to 212 | 6 to 8 |
Market may remain cautious ahead of Fed meet
The market may remain cautious ahead of the outcome of two day Federal Reserve meeting which began on Tuesday, 15 December 2009. High inflation remained a major concern for policymakers.
Exports broke their fall in November 2009 after 13 months of decline, adding to the flurry of positive economic data, but the news was greeted with caution by policymakers and exporters. Helped by Christmas buying, exports grew 18.3% to $13.2 billion in November from a small base last year.
On Tuesday, Moody's Investors Services raised its rating outlook on India's local currency to positive from stable, saying the move 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.”
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.
The government will take steps to tame rising prices and enable the economy to recover faster, the finance minister Pranab Mukherjee said on Tuesday, as concerns about inflationary pressures spilling over to the broader economy mount. Pranab Mukherjee also said the government intends to push tax reforms and cut its already-bloated fiscal deficit to 3 % of gross domestic product after 2011/12 fiscal year, from 6.8 % estimated for the current financial year ending March 2010.
Inflation and high fiscal deficit are major risks to the government's ambitious plan to ratchet up economic growth back to 9 % level seen between 2005/06 and 2007/08. Latest government data shows food inflation at 16.7 % in November 2009, which have pushed the headline inflation to 4.78 %.
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.
Meanwhile, the initial public offer of DB Corp, India's second largest regional newspaper, was subscribed a massive 39.54 times. The company has set a price band of Rs 185-212 a share.
Asian stocks were trading mixed on Wednesday as caution prevailed ahead of the Federal Reserve meeting. The key benchmark indices in China, Hong Kong, Indionesia and South Korea fell by between 0.1% to 0.87%. But, the key benchmark indices in Japan, Singapore and Taiwan rose by between 0.17% to 1.63%.
US markets snapped a four-day winning streak on Tuesday as an inflation report stoked interest rate fears. General Electric delivered a weak outlook. GE told investors that it expects revenue to be flat next year. The Dow was down 49.05 points, or 0.5%, to 10,452. The S&P 500 index was down 6.18 points, or 0.6%, to 1,107.93, and the Nasdaq Composite Index was down 11.05 points, or 0.5%, to 2,201.05.
In important macro data from the US, inflation at the wholesale level surged 1.8% in November 2009, reflecting price jumps in energy and other products. The jump in inflation comes as the federal reserve kicked off a two-day monetary-policy meeting. Production climbed 0.8 % in November 2009 in the U.S., the fourth gain in the past five months, the Federal Reserve said yesterday in Washington.
Federal Reserve Chairman Ben Bernanke, in a response to a lawmaker's questions made public on Tuesday, said the U.S. economy is operating so far beneath its potential that inflation is unlikely to become a problem.
A key event this week is a regular two-day meeting of the US Federal Reserve Meeting which began 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.
The key benchmark indices slumped, reversing an initial rally on Tuesday 15 December 2009 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 BSE Sensex fell 220.39 points or 1.29% to 16877.16 on that day.
As per provisional figures on NSE, the foreign funds sold shares worth Rs 6.14 crore and domestic funds bought shares worth Rs 38.69 crore on Tuesday.
Daily News Roundup - Dec 16 2009
Hindustan Unilever has signed a trademark licence agreement with Unilever, under which it will pay one per cent of net sales on specific brands as royalty to its UK-based parent. (FE)
German drugmaker Boehringer Ingelheim has started discussions with Cipla for a supplying drug worth upto US$17bn. (ET)
US drug major Hospira will buy the injectable pharmaceuticals business of Orchid Chemicals for US$400mn. (BS)
Sun Pharma gets boost in Taro battle as second-largest shareholder Templeton seeks management change, to vote against directors. (BS)
M&M has forayed into the aerospace business by acquiring majority stakes in two Australian companies, Aerostaff Australia and Gippsland Aeronautics. (BS)
Comptroller & Auditor General would audit the product sharing contracts (PSC) of RIL’s D6 gas block in the Krishna-Godavari basin for 2006-07 and 2007-08. (BS)
RIL’s efforts to buy a controlling stake LyondellBasell has got a bit complicated, as the company has submitted a new reorganisation plan to a court in the US. (ET)
Renuka Sugars may buy stake in Balrampur Chini. (BS)
BHEL is planning to acquire Hungary-based boiler maker TGR to establish a manufacturing facility in Europe. (FE)
Kotak Investment Banking, a subsidiary of Kotak Mahindra Bank, has entered into an exclusive alliance with Renaissance Capital, Russia’s biggest home-grown investment bank. (BS)
Tata Steel Europe (Corus) plans to invest €35mn at its rail production facility in Hayange, France to produce longer rails. (BL)
IVRCL to co-develop IOC's Paradip refinery through a SPV. (BL)
BSNL has started wireless broadband services and also announced a tariff starting with Rs140 per month for rural areas. (FE)
Powergrid Corporation to come up with its FPO for Rs20bn by March 2010. (ET)
Infosys has set up a wholly-owned subsidiary in Brazil. (ET)
Kingfisher Airlines to start air service between Nepal and India. (FE)
DLF has acquired Caraf Builders & Constructions, which owns DLF Assets Private (DAL), from promoter KP Singh’s family. DLF’s whollyowned subsidiary DLF Cyber City will acquire Caraf in a cashless transaction. After the transaction, the promoter stake in Cyber City will be 40%, while DLF’s stake will come down to 60%. (ET)
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)
Bharti Airtel is entering the teleport business, as it aims to expand its footprint in the media space. (ET)
Dhanalakshmi Bank is likely to entire a deal to acquire a medium-size existing asset management company. (ET)
After falling continuously for 13 months, the country’s merchandise exports registered a growth of 18% in November, at US$13.2bn against US$11.16bn in the same month last year. (BS)
Corporates shell out 36% more as advance tax in Q3 FY10. (BL)
The government has approved revival of 36 sick central public sector enterprises that will require Rs29bn of cash infusion, besides Rs123bn of other assistance. (ET)
ATASK force on GST set up by the Thirteenth Finance Commission has recommended the tax on all goods and services be dropped to 5% at the Centre and 7% at the state level, and that all exemptions be scrapped. (ET)
The traffic earnings of Indian Railways went up by almost 18% in November against the corresponding period last fiscal. (BL)
Bulls out of form!
When you can't have what you want, it's time to start wanting what you have.
What we have is Dhoni & Co. in fine touch. What we want is bulls to be in better form. After hitting the year’s high in mid-October, the market has turned turtle. Though the Nifty did make a new high recently, it has since retraced back to sub-5100 level. The broad range for the Nifty is expected to be 4900-5200 and the overall market trend will remain choppy.
Today again we expect a soft opening with US markets in the red and a flat finish in Europe. Asian markets are mixed. We don’t expect any major move (on either side) till a big influential event takes place. So, keep your eyes and ears open.
The immediate event to keep track of is today’s outcome of the Fed meeting. It’s a no-brainer that the Fed will keep rates steady. What the markets are keenly awaiting is some hints on its ‘exit’ strategy. Back home, the RBI is expected to reverse its easy money policy. It may opt to do it earlier than its scheduled January-end meeting.
Bank shares may do well on global media reports that the new global capital-adequacy rules for large banks may be delayed by at least a decade during a "transition period." According to a Japanese news report on Wednesday, the Swiss-based Basel Committee on Banking Supervision will stick to its plan to gradually introduce the new, stricter capital standards starting in 2012, but will establish a transition period of 10-20 years. The proposed changes include raising the current 8% minimum capital ratio and focusing on a narrower definition of core capital, the report said.
Among the other stocks to watch out for are: RIL, Cipla, DLF, Orchid Chemicals, Idea and Airlines.
FIIs were net sellers in the cash segment on Tuesday at Rs61.4mn on a provisional basis. The local funds were net buyers of Rs38.9mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs10.80bn. FIIs were net buyers of Rs1.74bn in the cash segment on Monday. FIIs' net investments in Indian stocks this year have crossed $16bn.
US stocks closed in the red after bank shares led a late-session selloff, breaking Wall Street's four-session wining streak, as investors contemplated mixed reports on inflation and manufacturing. The mood was also cautious as the two-day Federal Reserve policy meeting kicked off and the dollar remained firm.
The Dow Jones Industrial Average fell 49 points, or 0.5%, to 10,452.00. The S&P 500 index lost 6 points, or 0.6%, to 1,107.93. The Nasdaq Composite index slipped 11 points, or 0.5%, to 2,201.05.
US stocks had gained on Monday, with the Dow and S&P 500 ending at the highest levels since October 2008 and the Nasdaq closing at the highest point since September 2008. The advance came after Citigroup said it will repay its government bailout funds and Dubai said it received $10 billion to cover its debt, easing default worries.
The weak dollar also helped on Monday, lifting commodity shares and the stocks of companies that do a lot of business overseas. But the dollar gained on Tuesday as concerns about debt-ridden Greece caused investors to pull money out of the euro and put it in the dollar, pressuring stocks.
Stocks rallied for more than nine months off the March lows, with the S&P 500 having gained nearly 65% as of Monday's close. But in the last couple of weeks the advance has lost some steam and trading volume too has been much lighter.
Investors are still somewhat skeptical about the global economic recovery and the stock market rally worldwide and they continue to hoard cash. This push and pull is likely to keep stocks pretty rangebound for the time being.
The last Fed policy meeting of the year began on Tuesday with a decision on interest rates due out on Wednesday. The US central bankers are widely expected to hold the fed funds rate, a key overnight bank lending rate, unchanged at historic lows near zero, where the rate has stood for a year. But the policy statement could provide hints as to when the Fed plans to raise interest rates, either next year or in 2011.
In the day's economic reports wholesale prices rose more than expected last month, according to the Commerce Department. The Producer Price Index (PPI) rose 1.8% in November after rising 0.3% previously. Economists thought it would climb 0.8%. The so-called core PPI, which strips out food and energy costs, rose 0.5% versus forecasts for an increase of 0.2%. Core PPI was up 0.3% in the previous month.
The Empire Manufacturing index, a measure of manufacturing in the New York area, slumped to 2.55 in December from 23.51 in November, missing forecasts for a rise to 24.
In other manufacturing news, the Federal Reserve said that November capacity utilization rose to 71.3% from 70.6% in October. Economists thought it would rise to 71.1%. Industrial production rose 0.8% in November after holding steady in October. Economists thought it would climb 0.5%.
Wells Fargo said it sold $10.65 billion in stock on Tuesday to help pay back $25 billion in government bailout money, adding to the list of institutions that are looking to give back funds provided to them during the financial crisis.
Best Buy reported better-than-expected quarterly profit before the start of trading. The electronics retailer also lifted its current-quarter revenue and earnings forecast.
Boeing made the first test flight of its 787 Dreamliner Tuesday, nearly two-and-a-half years after the more fuel-efficient plane was due to fly.
General Motors said that it will pay off a $6.7 billion federal loan by June, ahead of its deadline for repayment under terms of the bailout.
COMEX gold for February delivery fell 80 cents to settle at $1,123 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 rose $1.18 to settle at $70.69 a barrel on the New York Mercantile Exchange.
Treasury prices fell, raising the yield on the 10-year note to 3.6% from 3.55% late on Monday.
Debt worries continued to weigh on the banking sector in Europe, though the broader market finished broadly unmoved as traders moved to the sidelines before a key US interest-rate decision.
The pan-European Dow Jones Stoxx 600 index closed virtually unmoved at 247.05 and the euro hit a ten-week low against the dollar on Tuesday amid fresh worries about the health of the European banking sector.
Germany's DAX index rose 0.2% to 5,811.34 and the French CAC-40 index added 0.1% to 3,834.09 while the UK's FTSE 100 index fell 0.6% to 5,285.77.
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 manages to curtail losses
Prices drop for first time in four sessions
Copper prices fell at Comex on Tuesday, 15 December, 2009. Prices dropped as the dollar gained again curbing the appetite for base metals as an alternate investment.
At USA, copper futures for March delivery ended lower by 1.05 cents (0.3%) to 3.1415 a pound. Earlier, prices dropped to the extent o 1.3%. 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%.
On the London Metal Exchange, copper for delivery in three months ended lower by $17 (0.3%) at $6,895 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
Losses of the red metal price were trimmed today following the industrial production report. The Federal Reserve said industrial production rose 0.8% in November, the strongest gain since August. Capacity utilization reached 71.3% in November from a 70.6% rate in the previous month.
In the currency market on Tuesday, the dollar index, which weighs the strength of dollar against a basket of six other currencies rose by almost 0.8%.
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 323.45/Kg. The closing price was Rs 1.25/Kg (0.4%) lower than previous closing price. Prices rose to a high of Rs 328.8/ Kg and fell to a low of Rs 321/Kg during the day's trading.
Among other metals traded in the LME on Tuesday, lead lost 0.2% to $2,335 a ton and zinc rose 0.4% to end at $2,344 a ton. Nickel was little changed at $16,906. Aluminium gained 0.3% at $2,265 a ton.
Asian stocks trade mixed
Asian stocks headed to their biggest gain in almost two weeks, led by Japanese banks after the Nikkei newspaper said tighter rules on bank-capital ratios will be delayed and after crude oil gained for the first time in 10 days.
Japanese benchmark index Nikkei 225 advanced 76.76 points, or 0.76%, to trade at 10,160.24. Hong Kong`s Hang Seng is trading gained 26.33 points, or 0.12%, at 21,840.25. China`s Shanghai Composite increased 1.30 points, or 0.04% to trade at 3,275.76.
Taiwan`s Taiex index dropped 50.92 points, or 0.65%, to trade at 7,756.70. South Korea`s Kospi index fell 10.52 points, or 0.63% to trade at 1,655.33. Singapore`s Straits Times index decreased 0.63 points, or to 0.02% trade at 2,798.07. (7.45 a.m., IST)
Union Bank of India
We recommend a sell in the stock of Union Bank of India from a short-term perspective. It is apparent from the charts of the stock that it had been on an intermediate-term uptrend from its March low of Rs 115 to an all-time high of Rs 291 recorded in November. However, the stock began to lose its bullish momentum and changed its trend, triggered by negative divergence displayed in the weekly relative strength index and moving average convergence and divergence. Since then the stock has been on a short-term downtrend. On December 15, it conclusively penetrated the intermediate-term uptrend-line as well as 50-day moving average by declining 3 per cent. The daily momentum indicators are on the verge of entering the bearish territory and the weekly momentum indicators are showing negative divergence. Considering the penetration of the uptrend-line, we are bearish on the stock from a short-term horizon. We expect it to decline until it hits our price target of Rs 230. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 272.
via BL
Precious metals end mixed
Yellow metal ends marginally lower but silver shines
Bullion metal prices ended mixed on Tuesday, 15 December, 2009. Gold prices registered marginal losses but silver went up. Speculation in the market that the Federal Reserve might withdraw back some of the liquidity that t has pumped in recent times gave a boost to the dollar.
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 Tuesday, gold for December delivery ended at $1,123 an ounce, lower by $0.80 (0.07%) 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 27.5%.
On Tuesday, December Comex silver futures ended higher by 11 cents (0.6%) at $17.45 an ounce. Last week, silver ended lower by b7.6%.
In the currency market on Tuesday, the dollar index, which weighs the strength of dollar against a basket of six other currencies rose by almost 0.8%.
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 16 (0.09%) at Rs 17,041 per ten grams. Prices rose to a high of Rs 17,108 per 10 grams and fell to a low of Rs 16,885 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed Rs 95 (0.34%) higher at Rs 27,318/Kg. Prices opened at Rs 27,305/kg and rose to a high of Rs 27,398/Kg during the day's trading.
Crude back at $70
Prices reclaim this level on demand hopes and drop in inventory speculation
Crude prices broke its losing streak and ended higher for the first time in ten sessions on Tuesday, 15 December, 2009. Prices rose as traders mulled over the fact that tomorrow's inventory report will show drop in crude supplies. Prices also rose as OPEC raised its forecast for global oil demand for next year.
On Tuesday, crude-oil futures for light sweet crude for January delivery closed at $70.69/barrel (higher by $1.18 or 1.7%). Before today, the contract had lost almost 12% in the past nine sessions. During intra day trading, it rose to a high of $71.15. 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 7.8%.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 59% since then.
Traders anticipated today that the weekly inventory report by EIA will show a drop of crude inventories by almost 2 millions barrels for last week.
In the latest report, OPEC revised higher its forecast for world oil demand next year by 70,000 barrels a day, to 85.13 million barrels, citing demand from developing countries such as China and India. However, the cartel said the pace of recovery in developed countries, especially in the U.S., remained at risk and could dampen demand.
The cartel also said that the supply of oil from non-OPEC nations will likely expand by 500,000 barrels a day this year, slightly higher than last month's forecast. In November, OPEC crude production averaged 29.1 million barrels a day.
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 Tuesday, January gasoline added 2 cents, or 1%, to $1.8451 a gallon. January heating oil ended slightly lower, down less than 1 cent at $1.9033 a gallon.
Also on Tuesday, natural gas for January delivery rose 19 cents, or 3.6%, to $5.523 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 35 (1.07%) at Rs 3,297/barrel. Natural gas for December delivery closed higher by Rs 11.7 (4.8%) at Rs 255.3/mmbtu.
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