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Wednesday, January 06, 2010
Post Market - Jan 6 2010
The Sensex for the fourth straight session settles on a positive note with marginal gains amid choppy session. Healthcare, realty and oil & gas stocks buck the trend, while IT, teck and metal traded lower. It opened with a gain of 33.23 points, at 17,719.47 on Wednesday on mixed global cues and later turned into red due to select buying and selling seen in frontliners. Further the index traded in a narrow range amid volatility on the back of directionless market. Finally, it closed on a flat note after touching a high of 17,790.33 and low of 17,636.71.
BSE Midcap and Smallcap index rose 0.68% at 6,945.94 and 0.44% at 8,601.91 respectively.
The Sensex ended the day with a gain of 14.89 points, or 0.08% at 17,701.13 after touching a high of 17,790.33 and a low of 17,636.71. The broad-based NSE Nifty climbed 3.90 points, or 0.07% at 5,281.80 after hitting a high of 5,310.85 and a low of 5,260.05.
Leaders in the 30-share index were Tata Power Company (4.61%), Grasim Industries (4.28%), Mahindra & Mahindra (2.39%), DLF (2.38%), Reliance Industries (1.80%), and Oil & Natural Gas Corporation (1.10%).
On the other hand, Maruti Suzuki India (3.50%), Hindalco Industries (2.45%), Reliance Infrastructure (2.30%), Tata Consultancy Services (2.28%), Wipro (1.65%), and Infosys Technologies (1.35%) were the major laggards in the Sensex pack.
Overall market breadth was mixed. Out of the total 2,970 stocks traded at BSE, 1,493 advanced, 1,402 declined while 75 remained unchanged.
Among the sectoral indices, BSE HC which went up 2.04%, Realty went up 1.43%, Oil & Gas went up 1.10%, Consumer Durables went up 0.68% and FMCG went up 0.53%, while BSE IT fell 1.41%, TECk fell 1.07%, Metal fell 0.98%, Auto lost 0.34% and Capital Goods lost 0.34%.
On global front, European stocks gained to a 15-month high as higher metals prices boosted the earnings outlook for basic-resource producers and automakers advanced. US index futures slipped.
Asian stocks rose, lifting the MSCI Asia Pacific Index for a fourth day, as higher US sales at Toyota Motor and Nintendo fueled optimism demand in the world`s biggest economy is recovering.
``The market is in uptrend and in the near term the market is expected to move in a range 5,150 to 5,350,`` said Avinash Gupta, assistant vice president Research Equity, Bonanza Portfolio.
DB Corp attracts 25% premium
Settles at Rs 265.90 on BSE
Shares of DB Corp settled at Rs 265.90 on the BSE, a premium of 25.40% over the initial public offer price of Rs 212.
The stock debuted at Rs 250, a 17.90% premium over the initial public offer (IPO) price. The stock hit a high of Rs 274.60 and a low of Rs 235.50. The counter clocked a volume 1.99 crore shares on the BSE.
The current price of Rs 265.90 discounts the company's half-year ended September 2009 annualised consolidated EPS of Rs 10.50 by a PE multiple of 25.32.
DB Corp had fixed the issue price at Rs 212 per share, at the top end of the Rs 185-212 per share price band. Retail investors were given a discount of Rs 2 per equity share over the issue price. The initial public offer (IPO) of DB Corp, which remained open between 11 and 15 December 2009, was subscribed 39.54 times. The IPO received bids for 58.92 crore shares as against 1.49 crore shares on offer.
The qualified institutional buyers (QIBs) category was oversubscribed by a staggering 68.52 times. The non-institutional investors category was oversubscribed 26.17 times and the retail investors category was oversubscribed 3.42 times.
DB Corp came out with an IPO of 1.81 crore shares with the face value Rs 10 each. The firm had 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
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. A chunk of the IPO proceeds 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.
The company's consolidated net profit declined 37.14% to Rs 47.70 crore on 11.56% rise in consolidated net sales to Rs 948.99 crore in the year ended March 2009 over the year ended March 2008.
Asian markets edge higher
Nikkei, NZX 50 inch higher while Shanghai, Seoul falls
Stock markets in Asian region extended their winning streak on Wednesday, 6 January 2010, as investors started selective buying as US sales reports boosted expectations demand in the world's biggest economy is recovering.
On Wall Street, stocks finished mixed but flat Tuesday, bouncing back from session lows after a report said pending home sales tumbled in November. The Dow Jones Industrial Average slipped 12 points, or 0.2%, to 10,572. The S&P 500 added 4 points, or 0.3%, at 1137, as the Nasdaq gained less than a point at 2309.
On the economic front there was mixed batch of economic releases. November factory orders rose 1.1% while pending home sales fell 16%. The first decline in nine months came as buyers rushed to close deals before the initial expiration date of a government tax-credit program. Year over year, pending home sales have risen 15.5%.
In the commodity market, crude oil traded near a 14-month high in New York as an industry report showed a decline in U.S. crude stockpiles and cold weather bolstered the outlook for fuel demand in the world’s largest energy-consuming nation.
Crude oil for February delivery was at $81.59 a barrel, down 18 cents, in electronic trading on the New York Mercantile Exchange at 3:40 p.m. Singapore time. Yesterday, the contract rose 26 cents to $81.77, the highest settlement since 9 October 2008.
Brent crude oil for February settlement traded at $80.42 a barrel, down 17 cents, on the London-based ICE Futures Europe exchange at 3:40 p.m. in Singapore. Yesterday, the contract rose 47 cents, or 0.6%, to end the session at $80.59.
Gold advanced in London as last month’s decline, the steepest in more than a year, spurred demand from investors. Platinum rose to the highest price since August 2008. Gold for immediate delivery rose as much as 0.7% to $1,126.13 an ounce and traded at $1,126.05 by 8:49 a.m. in London. Gold futures for delivery in February on the Comex division of the New York Mercantile Exchange gained 0.7% to $1,126.10.
In the currency market, the US dollar recovered overnight as rally in crude oil stalled ahead of $82 while gold retreats ahead of $1130 level. The greenback is regathering some strength in early European session as gold’s recovery lost steam and is back pressing $1120 level. The yen weakened against major currencies amid reports Japanese Finance Minister Hirohisa Fujii wants to step down due to ill health.
The Japanese yen softened against major currencies on speculation gains in Asian stocks will spur demand for riskier investments. Japan’s currency was quoted at 91.98 per US dollar from Tuesday’s quote at Y91.54 per dollar in New York.
The Hong Kong dollar was trading at HK$ 7.7554 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$7.85 to the U.S. dollar.
In Sydney trade, the Australian dollar was slightly lower against major counterparts on Wednesday’s after a muted reaction to a government report showed home-building approvals rose in November at a faster pace than economists estimated and the release of disappointing US home sales data overnight. The Australian dollar was quoted at 91.20 US cents from yesterday’s quote of 91.43 US cents.
In Wellington trade, the New Zealand dollar traded overnight in a range between US73.20c and US73.90c against the greenback, which was pressured by a steep drop in United States pending home sales. Around 8am the kiwi was buying US73.36c, little changed from its level at 5pm yesterday.
The South Korean won finished the day at 1136.4 won up from yesterday’s 1140.5 won.
The Taiwan dollar strengthened further against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 31.8270, 0.0330 up from Tuesday’s close of NT$31.8600.
In equities, Asian stocks ended mostly higher, with Japanese shares advancing for a third straight session as exporters were boosted by weakness in the yen
In Japan, the share market continued rally for third consecutive day, with benchmark Nikkei Average hugs 15-month high in wobbly trade, thanks to positive commodities prices and softer yen, although overall gains were limited due a disappointing showing in US home sales.
At the closing bell, the Nikkei 225 Stock Average index was at 10,731.45, spurted 49.62 points or 0.46% from Tuesday’s close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange added 11.56 points, or 1.26%, to 931.13.
In Mainland China, the China stocks gave up morning gains to finish the session lower, with falls in financials on worries about declining mortgages demand as government plan to crackdown on property speculation. Developers were under pressure on persistent worries the China will step up more measures to curb property speculation and due to inflationary pressure.
At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, grew 0.85%, to 3,282.18, while the Shenzhen Component Index on the smaller Shenzhen Stock Exchange slid 0.1% to 13,505.18. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, lost 0.63%, to 3,541.73.
On the economic front, a monthly survey released indicated improvement in China's services sector, with December business activity rising at the fastest pace in three months. HSBC said its China Services Purchasing Manager's Index rose to 57.2 for the month, up from 57.1 in November 2009.
In Australia, the shares market gave back morning gains to finish the session reasonably flat. The initial sharp gains which briefly took the key All Ordinaries to a 15-month intraday high were erased by profit taking in retailers, properties, and financials stocks. Investors stepped back and reassess their position after a mixed reaction to US data. At the closing bell, the benchmark S&P/ASX200 index slipped 2.9 points, or 0.06%, to 4,921.40, meanwhile the broader All Ordinaries added 7.30 points, or 0.15%, to 4,946.80.
On the economic front, the Australian Bureau of Statistics said Australian building approvals rose 5.9% to 13,724 units in November, seasonally adjusted, from an upwardly revised 12,962 units in October. In the year to November, domestic building approvals were up 33.3%. But Australia’s services sector failed to register growth in December; the Australian Industry Group says that is a reflection of the three consecutive official interest rate rises at the end of last year.
In New Zealand, benchmark index continued its upward movement although the impetus was milder than it’s opening on the first trading day of the year 2010 yesterday. New Zealand’s benchmark index gained the highest in over a month by more than 1% on Tuesday, beginning the New Year on a highly optimistic note. The benchmark NZX-50 index inched up 0.10% or 3.39 points to 3271.57. The NZX 15 gained 0.09% or 5.41 points to close at 5947.50.
In South Korea, stocks rose to a three-month high as foreign investors scooped up tech and auto shares, shrugging off the local currency's ascent. The benchmark Korea Composite Stock Price Index (KOSPI) advanced 14.7 points, or 0.87%, to 1,705.32.
In Singapore, sign of global economic recovery and positive offshore lead buoyed up Singapore share market 0.4% higher at the end of trading, with benchmark Strait Times registered gains for third day in row. At the closing bell, the blue chip Straits Times Index was at 2,930.49 grew 10.21 points or 0.35%.
In Taiwan, stock market in Taiwan extended its winning streak on Wednesday, 6 January 2010, crawling towards the twenty month high, led by LCD maker and other DRAM issues, as investors bought into the companies with brighter earnings outlook for 2010. The benchmark Taiex share index neared a new twenty month high, by ending the day higher by 116.22 points or 1.42% at 8327.62 - the highest closing since 11 June 2008 when market finished the day at 8345.59.
On the economic front, Taiwan’s consumer prices fell for an eleventh consecutive month in December on cheaper food, electronics and clothing prices. According to the data released by the Directorate General of Budget, Accounting and Statistics, the December consumer price index fell 0.21% from a year earlier, compared with a seasonally adjusted 1.61% in November. On a monthly basis, the December CPI fell 0.45% from November on lower fruit and vegetable costs and also reductions in consumer electronics prices, it said.
In Philippines, stock market closed marginally higher on the back positive signal from the central bank, which said that it would possibly keep its rates unchanged until later this year, which helped to boost investors’ sentiment. Despite increasing domestic prices, the average annual inflation rate of 3.2% for 2009 was still within the central bank’s official target of 2.5% to 4.5%. However, losses in mining & oil index, which tumbled more than 3%, limited the gains of the composite index. At the concluding bell, the benchmark index PSEi ascended 0.37% or 11.47 points to 3,039.93, while the All Shares index escalated 0.31% or 6.09 points to 1,915.31.
In India, the key benchmark ended slightly higher after moving in narrow ranges during the day. Firm Asian stocks and expectations of strong Q3 December 2009 results, supported domestic bourses. European stocks were weak. IT and metal stocks fell. But FMCG, healthcare and realty stocks rose. The market breadth was marginally positive.
The BSE 30-share Sensex was up 14.89 points or 0.08% at 17,701.13. The Sensex gained 104.09 points at the day's high of 17,790.33 at the onset of the trading session, its highest since 28 February 2008. The S&P CNX Nifty was up 3.90 points or 0.07% at 5281.80. It hit a high of 5310.85 in early trade, its highest since 27 February 2008.
Elsewhere, Malaysia’s Kula Lumpur Composite index finished slightly higher at 1293.17 while stock markets in Indonesia’s Jakarta Composite index fell 1.98 points ending the day lower at 2603.30.
In other regional market, stocks in Europe couldn't hold early gains on Wednesday as the market continued to drift after the year-opening rally. By region, the U.K. FTSE 100 slipped 0.3% or 15.80 points to 5,507, the German DAX fell 0.4% or 21.73 points to 6,010 and the French CAC 40 fell 0.2% or 8.30 points to 4,005.
Infinite Computer sets IPO price band at Rs 155-Rs 165
Issue to remain open between 11 to 13 January 2009
Infinite Computer Solutions (India)'s initial public offer (IPO) of 1.15 crore equity shares opens for subscription on 11 January 2010. The IPO closes on 13 January 2010.
The company will offer shares through a 100% book-building process. The price band for the IPO has been set at Rs 155 to Rs 165. At the top end of the price band, the company will raise about Rs 190 crore.
The IPO includes fresh issue of 57.,33 lakh equity shares and an offer to sell 57.69 lakh equity shares by Whiterock Investments (Mauritius).
The company intends to utilize the IPO proceeds for meeting capital expenditure, making acquisitions and repaying debt.
Infinite Computer Solutions (India) is mainly into software application development and maintenance but has diversified into other areas such as remote infrastructure management and research & development services.
Turnover declines
SBI January 2010 futures at discount
Nifty January 2010 futures were at 5,291.40, at a premium of 9.60 points as compared to the spot closing of 5,281.80. Turnover in NSE's futures & options (F&O) segment was Rs 52,701.84 crore, lower than Rs 59,599.01 crore on Tuesday, 5 January 2010.
State Bank of India (SBI) January 2010 futures were at a slight discount at 2299 compared to the spot closing of 2300.
Tata Steel January 2010 futures were near spot price at 642.55 compared to the spot closing of 643.20.
Unitech January 2010 futures were near spot price at 85.10 compared to the spot closing of 84.70.
In the cash market, the S&P CNX Nifty rose 3.90 points or 0.07% at 5,281.80.
BSE Bulk Deals to Watch - Jan 6 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
6/1/2010 532727 Adhunik Metal MERRILL LYNCH CAPITAL MARKET ESPANA S.A. B 678505 109.00
6/1/2010 504629 Anil Special ASHA JHAVERILAL DEDHIA S 103271 15.36
6/1/2010 531519 Ankush Finstock KRUNAL SAIDAS VANJARE S 36566 3.40
6/1/2010 532981 Anus Lab ALPESH JAYANTILAL PANDIT B 1399813 8.75
6/1/2010 532981 Anus Lab ALPESH JAYANTILAL PANDIT S 1399813 8.57
6/1/2010 531881 Arvind Chem NILESH EKNATH BHOIR B 116620 24.23
6/1/2010 531881 Arvind Chem NILESH EKNATH BHOIR S 113573 23.88
6/1/2010 512109 Aviva Inds ALPESH JAYANTILAL PANDIT B 63178 26.75
6/1/2010 512109 Aviva Inds AJAY PRABHULAL SHAH S 17000 26.75
6/1/2010 512109 Aviva Inds KANHAIYA LAL SALAWAT S 20000 26.75
6/1/2010 512109 Aviva Inds KESHARLAL MAHAVEER PRASAD RUNGTA S 8700 26.75
6/1/2010 512109 Aviva Inds SUJATA PUNEETKUMAR RUNGTA S 10600 26.75
6/1/2010 505506 Axon Infotech AMIT SARAFF B 4000 19.08
6/1/2010 505506 Axon Infotech SANJAY P DAVDA S 4100 19.15
6/1/2010 531733 Bafna Spinning UMA VARDICHAND BAFNA S 239000 2.60
6/1/2010 531591 Bampsl Sec KAUSHALYA GARG B 850000 0.69
6/1/2010 531591 Bampsl Sec VIJAY KUMAR GOYAL S 600000 0.69
6/1/2010 590076 Camson Bio THE INDIAMAN FUND MAURITIUS LIMITED B 150000 105.97
6/1/2010 590076 Camson Bio SANATAN HERBAL AND NATURALS LIMITED S 150000 105.83
6/1/2010 512093 Cranes Soft TRANSGLOBAL SECURITIES LTD. B 1881331 30.42
6/1/2010 512093 Cranes Soft TRANSGLOBAL SECURITIES LTD. S 1881331 30.46
6/1/2010 512093 Cranes Soft DEUTSCHE SECURITIES MAURITIUS LIMITED S 1010000 30.18
6/1/2010 512093 Cranes Soft MACQUARIE BANK LIMITED S 1067974 30.23
6/1/2010 532858 Decolight Cerm D. B. SECURITIES. PVT. LTD. S 191864 10.31
6/1/2010 517973 DMC Intl ATUL MITTAL B 37000 28.35
6/1/2010 517973 DMC Intl BHARAT GUPTA B 73245 28.26
6/1/2010 517973 DMC Intl CENTENARY SOFTWARE PVT LTD B 133971 28.26
6/1/2010 517973 DMC Intl KAPIL GUPTA B 39577 28.35
6/1/2010 517973 DMC Intl ANJANA GUPTA S 52800 28.35
6/1/2010 517973 DMC Intl ATUL MITTAL S 53300 28.35
6/1/2010 517973 DMC Intl CENTENARY SOFTWARE PVT LTD S 136704 28.35
6/1/2010 526473 Elegant Flori PRATIMA BAPI ROY S 30000 5.36
6/1/2010 517477 Elnet Tech VALLA KATI B 22641 72.76
6/1/2010 532984 Enso Secutrack ASHISH BEGWANI B 165000 24.29
6/1/2010 532984 Enso Secutrack GOODNESS TRADING PRIVATE LIMITED S 75000 24.40
6/1/2010 532984 Enso Secutrack ALANKRIT RETAILERS PRIVATE LIMITED S 56500 24.20
6/1/2010 533149 Essar Sec HITESH RAMJI JAVERI S 219044 103.22
6/1/2010 530337 Exelon Infra SWEETY PVT LTD B 40000 53.30
6/1/2010 590094 FARMAX RET K SIVANANDA BABU B 58000 172.39
6/1/2010 590094 FARMAX RET WINNERS SALES PRIVATE LIMITED S 80000 171.98
6/1/2010 532022 Filatex Fash ANGEL INFIN PRIVATE LIMITED B 32500 14.55
6/1/2010 532022 Filatex Fash PRITHVIRAJ S KOTHARI B 99400 14.66
6/1/2010 504697 Galada Power KIRAN GARG B 41710 10.84
6/1/2010 533048 GI ENGINERG SHRI PARASRAMHOLDING PVT LTD S 55100 22.50
6/1/2010 532715 Gitanjali Gems MERRILL LYNCH CAPITAL MARKETS ESPANA SA SV B 2395824 124.75
6/1/2010 532715 Gitanjali Gems SANSAR CAPITAL (MAURITIUS) LTD S 2395824 124.75
6/1/2010 511682 IFL Promoters CENTENARY SOFTWARE PVT LTD B 18754 9.80
6/1/2010 523844 Invicta Meditek CHEMBRA ECONOMIC CONSULTANCY SERVICES LIMITED S 39493 8.32
6/1/2010 523467 Jai Mata Glass GROWMORE PROPERTIES PVT LTD S 168019 2.67
6/1/2010 532283 Kaashyap Tech AYODHYAPATI INVESTMENT PVT LTD B 2860268 0.85
6/1/2010 532283 Kaashyap Tech CHAMPAKLAL JETHALAL SHAH B 5000000 0.85
6/1/2010 532283 Kaashyap Tech AYODHYAPATI INVESTMENT PVT LTD S 2250000 0.86
6/1/2010 532283 Kaashyap Tech TAIB SEC MAURITIUS LTD S 10000000 0.85
6/1/2010 530255 KAY Power KAUSHALYA GARG B 75120 12.81
6/1/2010 530255 KAY Power KAUSHALYA GARG S 100000 13.08
6/1/2010 530255 KAY Power VISHAL PIPES LTD S 66510 12.06
6/1/2010 530357 KBS Capital SWETA MAHESH SHAH B 31581 40.39
6/1/2010 530357 KBS Capital SWETA MAHESH SHAH S 31581 43.40
6/1/2010 531731 Kuvam Intl Bhavesh Mulji Katira B 25000 50.42
6/1/2010 531731 Kuvam Intl PARVEEN KUMAR GOEL S 16600 50.37
6/1/2010 519570 Lakshmi Over COPTHALL MAURITIUS INVESTMENT LIMITED B 1475274 162.50
6/1/2010 519570 Lakshmi Over SANSAR SPECIAL OPPORTUNITIES MAURITIUS LTD S 1475274 162.50
6/1/2010 531528 Maars Software INVESTMENTS SHIVAM S 1400000 3.00
6/1/2010 531515 Mahan Inds SHASHI SINGHVI B 120000 32.55
6/1/2010 531515 Mahan Inds YOGENDRA KUMAR GUPTA S 200000 32.55
6/1/2010 531515 Mahan Inds JASMINS BAJORIYA S 45700 32.55
6/1/2010 516007 Mangalam Timb HITESH SHASHIKANT JHAVERI B 184984 37.95
6/1/2010 516007 Mangalam Timb HITESH SHASHIKANT JHAVERI S 172084 37.92
6/1/2010 532950 Manjushree Techno HITESH SHASHIKANT JHAVERI B 92326 53.35
6/1/2010 532950 Manjushree Techno SECURITIES VSL S 75000 53.80
6/1/2010 590111 MASTER P T N V AMBICA RAMASUDARSAN S 32000 67.60
6/1/2010 590111 MASTER VENKATA BADRINARAYAN AMMA GOLLAPUDI S 27000 64.50
6/1/2010 533080 MOLDTK PLA KUMAR GOEL ANIL S 45000 46.11
6/1/2010 532952 Nahar Capital NAHAR SPINNING MILLS LTD. B 100000 67.90
6/1/2010 532952 Nahar Capital SHIVALIK SECURITIES LTD S 100000 67.90
6/1/2010 531834 Natura Hue Chem CHETAN DOGRA B 31000 35.38
6/1/2010 519560 Neha Intl ADITYA AGGARWAL HUF B 70090 70.93
6/1/2010 519560 Neha Intl Naman Securities & Finance Pvt. Ltd. S 75002 71.26
6/1/2010 523820 Neo Corp SWIFT TIE UP PVT LTD B 46909 70.59
6/1/2010 532045 Nexxoft Info C GEETHA B 50001 23.05
6/1/2010 532045 Nexxoft Info Y RAVI PRASAD S 50000 23.05
6/1/2010 590090 Octant Inter INDIUM HOME CARE PRIVATE LTD S 245226 13.61
6/1/2010 590090 Octant Inter HANDFUL INVESTRADE PVT LTD S 158045 13.10
6/1/2010 531496 Omkar Overseas PINABEN PRAKASHKUMAR SHETH B 40507 48.23
6/1/2010 511702 Parsharti Inv KRUPASANJAY SONI B 29663 36.69
6/1/2010 511702 Parsharti Inv BHAVESH SHANTILAL TRIVEDI B 45673 35.69
6/1/2010 511702 Parsharti Inv SANJAY JETHALAL SONI B 25393 37.00
6/1/2010 511702 Parsharti Inv RAJU KUMAR MAHIPAL HUF B 18000 36.00
6/1/2010 511702 Parsharti Inv KRUPASANJAY SONI S 38663 36.10
6/1/2010 511702 Parsharti Inv BHAVESH SHANTILAL TRIVEDI S 31000 36.02
6/1/2010 531855 Prabhav Inds SHREENATHJI FINSTOCK PVT LTD S 75000 50.50
6/1/2010 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA B 66745 33.16
6/1/2010 502587 Rama Pulp MUMBAI STK. BROKING PVT. LTD. B 50000 33.10
6/1/2010 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA S 101554 33.19
6/1/2010 590077 Ranklin Sol R O BART B 27662 52.01
6/1/2010 511585 Regency Trust RICHA AGARWAL B 21100 26.66
6/1/2010 530271 Rich Capital SCOPE VYAPAR PRIVATE LIMITED B 40046 89.00
6/1/2010 530271 Rich Capital JHUNJHUNWALA VANASPATI LTD S 40000 89.00
6/1/2010 533083 RISHABHDEV MAHESH MEETAL B 315028 17.54
6/1/2010 533083 RISHABHDEV ARIHANT SEC & INVESTMENT B 299884 17.70
6/1/2010 533083 RISHABHDEV SARSWATI VINCOM LTD B 180380 17.50
6/1/2010 533083 RISHABHDEV MAHESH MEETAL S 314958 17.45
6/1/2010 533083 RISHABHDEV KII LTD S 700000 17.56
6/1/2010 533083 RISHABHDEV ARIHANT SEC & INVESTMENT S 299884 17.61
6/1/2010 533083 RISHABHDEV SARSWATI VINCOM LTD S 115283 17.28
6/1/2010 507315 Sakthi Sugars HITESH SHASHIKANT JHAVERI B 211801 104.85
6/1/2010 507315 Sakthi Sugars HITESH SHASHIKANT JHAVERI S 209646 104.82
6/1/2010 506172 Sampada Chem SURENDRA SOMANI S 30000 59.73
6/1/2010 512499 Shalimar Prod ANANT PRAKASH KABRA S 200200 1.60
6/1/2010 512289 Shirpur Gold C S ORBIT INVESTMENTS LTD S 106101 178.20
6/1/2010 526479 SKY Inds V R M SHARE BROKING PRIVATE LIMITED S 25000 85.02
6/1/2010 531841 Subuthi Finance KALPANA MADHANI SECURITIES PVT. LTD. S 40000 28.50
6/1/2010 531841 Subuthi Finance BALA VENCKAT KUTTI S 80000 28.50
6/1/2010 533121 THINKSOFT A.K.G. STOCK BROKERS PVT. LTD. B 76262 353.05
6/1/2010 533121 THINKSOFT A.K.G. STOCK BROKERS PVT. LTD. S 76262 353.36
6/1/2010 526139 Transgene Bio TAMMINEEDI PREETI B 90000 71.45
6/1/2010 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR B 23018 377.87
6/1/2010 531249 Well Pack Papers SHOBHNABEN R PARMAR S 29370 377.11
6/1/2010 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR S 26393 376.86
6/1/2010 514470 Winsome Tex PREETI SARAF B 2800000 4.43
6/1/2010 514470 Winsome Tex KAILASHPATI VINIMAY PRIVATE LIMITED S 2800000 4.43
* B - Buy, S - Sell
NSE Bulk Deals to Watch - Jan 6 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
06-JAN-2010,ADHUNIK,Adhunik Metaliks Limited,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S.V. B,BUY,621495,109.00,-
06-JAN-2010,CRANESSOFT,Cranes Software Internati,TRANSGLOBAL SECURITIES LTD.,BUY,2185493,30.37,-
06-JAN-2010,DBCORP,D.B.Corp Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,1032546,263.11,-
06-JAN-2010,DBCORP,D.B.Corp Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,935388,262.48,-
06-JAN-2010,FCSSOFT,FCS Software Solutions Li,PATEL PRAKASHBHAI NARSINHBHAI,BUY,1596593,14.00,-
06-JAN-2010,FCSSOFT,FCS Software Solutions Li,REGENT FINANCE CORPORATION PVT. LTD.,BUY,1525598,14.19,-
06-JAN-2010,GLORY,Glory Polyfilms Limited,KSHITIJ-PORTFOLIO-PVT.-LTD.,BUY,197001,25.68,-
06-JAN-2010,HILTON,Hilton Metal Forging Limi,VAIBHAV DOSHI,BUY,75000,27.10,-
06-JAN-2010,HILTON,Hilton Metal Forging Limi,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,171636,27.06,-
06-JAN-2010,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,8369483,23.31,-
06-JAN-2010,KAUSHALYA,Kaushalya Infrastructure,ANGEL INFIN PRIVATE LIMITED,BUY,93470,29.54,-
06-JAN-2010,MANGTIMBER,Mangalam Timber Pro Ltd,MAHALAXMI BROKRAGE INDIA PRIVATE LIMITED,BUY,109544,36.48,-
06-JAN-2010,MANGTIMBER,Mangalam Timber Pro Ltd,RAHUL DOSHI,BUY,181067,37.64,-
06-JAN-2010,MANGTIMBER,Mangalam Timber Pro Ltd,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,127201,37.98,-
06-JAN-2010,NAHARCAP,Nahar Capital and Financi,NAHAR SPINNING MILLS LTD,BUY,170000,68.99,-
06-JAN-2010,SASKEN,Sasken Commu Techno Ltd,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,180900,187.43,-
06-JAN-2010,SELMCL,SEL Manufacturing Company,NIKON FINLEASE PVT. LTD,BUY,112373,87.18,-
06-JAN-2010,SICAGEN,Sicagen India Limited,SAL REAL ESTATES (P) LTD,BUY,216301,16.80,-
06-JAN-2010,SIMBHSUGAR,Simbhaoli Sugars Limited,SUVRIDHI CAPITAL MARKETS LIMITED,BUY,117468,83.65,-
06-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,87895,353.08,-
06-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,TECHNO BROKING & FINANCIAL SERVICES PVT LTD,BUY,4000,350.56,-
06-JAN-2010,TIPSINDLTD,Tips Industries Limited,SHIVIKA COMMUNICATION PRIVATE LIMITED,BUY,117035,60.30,-
06-JAN-2010,WINDSOR,Windsor Machines Limited,KHANDELWAL BROS. [PROP. DILIP KUMAR KHANDELWAL],BUY,73199,32.84,-
06-JAN-2010,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1153080,20.35,-
06-JAN-2010,CRANESSOFT,Cranes Software Internati,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,1090000,30.12,-
06-JAN-2010,CRANESSOFT,Cranes Software Internati,MACQUARIE BANK LIMITED,SELL,1032026,30.33,-
06-JAN-2010,CRANESSOFT,Cranes Software Internati,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,1500000,29.67,-
06-JAN-2010,CRANESSOFT,Cranes Software Internati,TRANSGLOBAL SECURITIES LTD.,SELL,2183493,30.35,-
06-JAN-2010,DBCORP,D.B.Corp Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,1032546,263.37,-
06-JAN-2010,DBCORP,D.B.Corp Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,935388,262.33,-
06-JAN-2010,FCSSOFT,FCS Software Solutions Li,PATEL PRAKASHBHAI NARSINHBHAI,SELL,1618212,14.11,-
06-JAN-2010,FCSSOFT,FCS Software Solutions Li,PUMARTH CREDIT & CAPITAL LTD.,SELL,3150000,14.00,-
06-JAN-2010,FCSSOFT,FCS Software Solutions Li,REGENT FINANCE CORPORATION PVT. LTD.,SELL,1525598,14.61,-
06-JAN-2010,HILTON,Hilton Metal Forging Limi,VAIBHAV DOSHI,SELL,50000,27.10,-
06-JAN-2010,HILTON,Hilton Metal Forging Limi,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,171636,27.07,-
06-JAN-2010,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,8420322,23.33,-
06-JAN-2010,KAUSHALYA,Kaushalya Infrastructure,ANGEL INFIN PRIVATE LIMITED,SELL,125971,29.49,-
06-JAN-2010,KLGSYSTEL,KLG Systel Ltd.,PUSHAP LATA GOEL,SELL,103000,215.42,-
06-JAN-2010,MANGTIMBER,Mangalam Timber Pro Ltd,MAHALAXMI BROKRAGE INDIA PRIVATE LIMITED,SELL,99501,36.45,-
06-JAN-2010,MANGTIMBER,Mangalam Timber Pro Ltd,RAHUL DOSHI,SELL,81085,37.98,-
06-JAN-2010,MANGTIMBER,Mangalam Timber Pro Ltd,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,118201,37.87,-
06-JAN-2010,NAHARCAP,Nahar Capital and Financi,SHIVALIK SEC. LTD,SELL,170000,68.89,-
06-JAN-2010,SELMCL,SEL Manufacturing Company,NIKON FINLEASE PVT. LTD,SELL,112373,87.19,-
06-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,87892,353.16,-
06-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,TECHNO BROKING & FINANCIAL SERVICES PVT LTD,SELL,70314,349.89,-
06-JAN-2010,TIPSINDLTD,Tips Industries Limited,SHIVIKA COMMUNICATION PRIVATE LIMITED,SELL,117035,60.57,-
06-JAN-2010,WINDSOR,Windsor Machines Limited,KHANDELWAL BROS. [PROP. DILIP KUMAR KHANDELWAL],SELL,30000,33.12,-
06-JAN-2010,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1153080,20.37,-
Sensex closes marginally higher
Today's major news
Mahindra & Mahindra plans Scorpio’s successor; the stock surged 2.39%
Jaihind Projects bags orders worth Rs25 crore; the stock closed 0.54% higher
Larsen & Toubro wins orders worth Rs2,325 crore; the stock closed 1.04% lower
Raj Television ventured into movie distribution platform; the stock rose 1.20%
KEI in pact with Brugg Kabel AG, Switzerland; the stock jumped 4.03%.
Click here for more stories
Events Update
DB Corp lists on BSE at Rs250, 18% premium on the issue price. The day’s low was Rs235.50 and the day’s high was Rs274.60. The stock closed at Rs265.90, up by 25.42% with volumes of 19,917,826 shares on the BSE.
Post-market summary
Global signals
European stocks opened lower, as energy stocks fell on the back of decline in oil prices. FTSE 100 was trading 19 points lower at 5503 at the time of writing this report.
Among major Asian indices, all the indices closed higher except Jakarta Composite that fell marginally. SGX Nifty closed 13 points higher.
In the US, the investor would be eagerly waiting for data related to Challenger job cuts for December, ADP Employment Report for December, ISM Service data for December and Crude inventories as on December 31, 2009.
Indian indices
Sensex ended the day with marginal gains of 15 points or 0.08%. Owing to mixed performance by global indices, Sensex that opened 33 points higher soon turned negative and swung between red and green throughout the day. The day’s low was 17637 and the high was 17790. At finishing line, Sensex closed marginally higher, by 15 points, at 17686. Nifty ended the session at 5282, up by 4 points.
Market sentiment
The market breadth was almost neutral. Of the 2,970 stocks traded on the BSE, 1,495 stocks advanced, whereas 1,400 stocks declined. Seventy five stocks closed unchanged.
Sectoral & stock screening
Health care and realty stocks witnessed some investor interest with the BSE HC and BSE Realty up by 2.04% and 1.43% respectively. Information technology stocks have been under pressure and the sector index, BSE IT, was down by 1.41% for the day.
On stocks’ front, Adani Enterprises was the star stock of the day posting gains of 10.40% followed by Financial Technologies that surged by 6.45% and Indiabulls Financial Services that rose by 5.66%. Among losers, National Aluminium slid the most by 5.91%, followed by Maruti Suzuki India that fell by 3.50% and Apollo Hospitals that shed 3.44%.
Viewing volumes
Ispat Industries was the most actively traded share with over 1.25 crore shares changing hands on the BSE followed by wind turbine maker Suzlon Energy (0.90 crore shares), industrial finance company IFCI (0.83 crore shares), realty company Unitech (0.74 crore shares), and ADAG group company Reliance Natural Resources (0.70 crore shares).
Sensex, Nifty attain 22-month closing highs
The key benchmark ended slightly higher to hit 22-month closing highs as firm Asian stocks and expectations of strong Q3 December 2009 results, underpinned sentiment. The BSE 30-share Sensex rose 14.89 points or 0.08%, up close to 65 points from the day's low and off close to 90 points from the day's high. European stocks were weak. IT and metal stocks fell. But FMCG, healthcare and realty stocks rose. The market breadth was marginally positive.
The market came off higher level soon after an initial surge that pushed the key benchmark indices to their highest level in 22 month. The market soon came off the lows. However, the intraday recovery proved short lived. The Sensex slipped into the red morning trade. The barometer index regained positive zone only to slip into the red again. The market once again regained positive zone in early afternoon trade after moving between the positive and negative terrain. The market once again slipped into the red in mid-afternoon trade. The market regained positive zone in late trade.
Business activity among Indian services companies expanded at its fastest pace in 15 months in December 2009 and helped create more jobs, but the outlook for 2010 is wary, a survey released on Wednesday showed. The HSBC Markit Business Activity Index, based on a survey of 400 firms, rose to 57.41 in December, its highest since September 2008, after slowing to 55.20 in November. The index has been above 50, separates expansion from contraction
However, the business expectations sub-index slowed for a second straight month to 65.56 in December, to its lowest level in 10 months. It stood at 71.58 in November. The degree of positive sentiment fell sharply since November, as a greater proportion of companies reported that they expect activity in 12 months' time to be broadly similar to current levels, HSBC Markit said in the report.
Meanwhile, the Indian industry on Tuesday urged the government to continue with the fiscal stimulus at least for six months, as withdrawing them could choke faster recovery of the economy. In the customary pre-budget meeting with Finance Minister Pranab Mukherjee, industry representatives also demanded tax reforms through introduction of a Goods and Services Tax and reduction of the fiscal deficit. Leading industry bodies also wanted the easy monetary stance to continue. The Reserve Bank has already turned hawkish after food inflation neared 20% by end of December 2009
An adjustment in policy interest rates is not warranted for now but liquidity tightening may be needed, the prime minister's economic adviser C. Rangarajan said recently. Kaushik Basu, chief economic adviser to the finance ministry, also said on Monday that no monetary policy tightening measures are expected now. Rangarajan said the inflation rate could rise above 6% by the end of the fiscal year in March. The central bank's inflation projection stands at 6.5% with an upward bias for end-March, while some private economists expect it to reach about 8%. Some policymakers have said recently that food prices may drop in coming months and ease the pressure on the central bank to hike rates.
The latest data showed that the rate of growth in manufacturing rose for the first time in three months in December 2009, with activity reaching its highest since May 2009 on sharp rises in new work and output. The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 Indian companies, rose to 55.6 in December from 53.0 in November. The reading was the strongest since May's 55.7, which was the strongest in 2009.
Data last month showed that corporate advance tax payments for the October-December 2009 quarter shot up sharply, suggesting a higher profit growth in corporate sector in the third quarter (October-December) of the current fiscal. Corporate advance tax payments for the quarter were up 44% to Rs 48,300 crore against a 3.7% decline in April-June quarter and a 14.7% increase in July-September quarter. The company-wise break-up of advance tax collection suggests a broad-based recovery with automobiles, cement, metals and consumer goods, doing well.
Corporate tax collections increased 44% in December 2009, suggesting a smart recovery in corporate performance and increasing the possibility of the government exceeding the overall direct tax collections target for the entire year and making up for the shortfall in indirect tax collections. Higher corporate tax collections have boosted overall direct tax collections that rose by 8.5% during April-December 2009 to Rs 2.5 lakh crore.
European shares turned negative after hitting a new 15-month peak earlier in the day, with investors waiting for more macro-economic data later in the session for clearer market direction. The key benchmark indices in France and UK were down by between 0.03% to 0.23%. Germany's DAX rose 0.09%.
Private-sector activity in the 16-nation euro zone accelerated in December 2009, pushing the euro-zone composite purchasing managers index to a 26-month high of 54.2, Markit Economics reported Tuesday. The reading confirmed an earlier estimate and marked a rise from 53.7 in November. A reading of more than 50 means a majority of managers reported a rise in activity, while a reading of less than 50 signals contraction.
Most Asian stocks rose on Wednesday as Toyota Motor Corp.'s and Nintendo Co.'s US sales reports boosted expectations demand in the world's biggest economy is recovering. The key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.35% to 1.42%. But, key benchmark indices in China and Indonesia fell by between 0.08% to 0.85%.
A monthly survey released Wednesday indicated improvement in China's services sector, with December business activity rising at the fastest pace in three months. HSBC said its China Services Purchasing Manager's Index rose to 57.2 for the month, up from 57.1 in November 2009.
Trading in US index futures indicated Dow could fall 13 points at the opening bell on Wednesday, 6 January 2010.
In US markets action on Tuesday, the S&P 500 and the Nasdaq rose on as better-than-expected factory orders and a surge in vehicle sales at Ford Motor Co provided more evidence of an economic recovery. But a big decline in pending home sales, which fell in November for the first time in nine months, increased concerns about the housing market, capping the broad market's gains and pushing the Dow industrials into the red, a day after all three major US stock indexes finished the first trading day of 2010 at the highest levels in over a year. The Dow Industrials slipped 11.94 points, or 0.1%, to 10,572.02. The Standard & Poor's 500 index rose 3.53 points, or 0.3%, to 1,136.52. The Nasdaq Composite Index was up 0.29 points, or less than 0.1%, to 2,308.71.
In economic data, pending-home sales tumbled 16% in November 2009, much steeper than the 5% drop expected and the 3.7% gain logged in October 2009. But factory orders rose 1.1% in November, more than double of what was expected.
Short-term US interest rate futures prices climbed for a second straight day on Tuesday as traders' sentiment for yields to stay low runs contrary to views evident just before the turn of the year. Federal-funds futures after Tuesday's action see less than even odds for the Federal Open Market Committee (FOMC) to raise the funds rate by mid-year. The July 2010 contract priced in only a 46% chance for the FOMC to lift the Fed funds rate to 0.5% at the late June 2010 policy meeting, down from a 58% chance at Monday's settlement, and a 78% chance as factored in at last Thursday's settlement.
Closer home, the BSE 30-share Sensex rose 14.89 points or 0.08% at 17,701.13, its highest closing since 28 February 2008. The Sensex gained 104.09 points at the day's high of 17,790.33 at the onset of the trading session. The Sensex fell 49.53 points at the day's low of 17636.71 in morning trade.
The S&P CNX Nifty rose 3.90 points or 0.07% at 5281.80, its highest closing since 28 February 2008. It hit a high of 5310.85 in early trade, its highest since 27 February 2008.
BSE clocked a turnover of Rs 6198 crore, lower than Rs 7135.39 crore on Tuesday, 5 January 2010.
The market breadth, indicating the overall health of the market was positive. But the breadth weakened when compared to a strong breadth witnessed in early trade. On BSE, 1488 shares advanced as compared with 1,408 that declined. A total of 73 shares remained unchanged.
The BSE Mid-Cap index rose 0.6% and the BSE Small-Cap index rose 0.44%. Both these indices outperformed the Sensex
Among the sectoral indices on BSE, the BSE HealthCare index (up 2.04%), the BSE Realty index (up 1.43%), the BSE Oil & Gas index (up 1.1%), the BSE Consumer Durables index (up 0.68%), the BSE FMCG index (up 0.53%), banking sector index the Bankex (up 0.43%) and the BSE Power index (up 0.21%), outperformed the Sensex.
The BSE IT index (down 1.41%), the BSE Metal index (down 0.98%), the BSE Auto index (down 0.34%) and the BSE Capital Goods index (down 0.34%), underperformed the Sensex.
Among the 30-member Sensex pack, 15 rose while rest fell.
Index heavyweight Reliance Industries (RIL) rose 1.8% on bargain hunting after the stock declined for two days in a row. RIL, early this week, raised Rs 2,675 crore selling shares held by its treasury to build a war chest probably to buy the bankrupt petrochemical major LyondellBasell.
RIL sold 2.58 crore treasury shares, created eight years ago following the merger of Reliance Petroleum with RIL, to state-owned Life Insurance Corporation, which is the largest institutional shareholder in the company with a 6% stake.
FMCG stocks rose on bargain hunting. ITC, Hindustan Unilever, Dabur India, Tata Tea rose by between 0.14% to 1.78%.
Software pivotals fell on a firm rupee. India's second largest software services exporter Infosys fell 1.35% even as its ADR rose 0.39% on Tuesday. India's third largest software services exporter Wipro fell 1.65% even as its ADR rose 2.92% on Tuesday. India's largest software services exporter TCS fell 2.28%.
The rupee surged to its highest level in 11 weeks against the US dollar boosted by a report calling for a yuan revaluation and following the domestic stock market's rise to a 22-month peak early. At 15:00 IST, the partially convertible rupee was at 45.97/98 per dollar, its strongest since 20 October 2009, and above Tuesday's close of 46.24/25. A firm rupee adversely affects operating profit margin of IT firms as the sector derives a lion's share of revenue from exports.
Rate sensitive realty stocks rose on positive outlook for 2010 after a lackluster 2009. India's largest realty player by market capitalization DLF rose 2.38%. On 16 December 2009, the company's board approved merger of its commercial realty arm DLF Assets (DAL) with itself, a move aimed at repaying some of DAL's debt.
Among other realty stocks, Indiabulls Real Estate, Unitech, Phoenix Mills rose by between 0.72% to 5.02%.
Drug maker Dr. Reddy's Laboratories rose 2.32% extending Tuesday's 2.91% gains after the company said its Balaglitazone diabetes drug has met its primary target in the first of its phase 3 clinical trials. Balaglitazone reduced blood glucose levels over a period of time in the study conducted on 409 patients.
Among other health care stocks. Sun Pharmaceuticals, Ranbaxy Labs, Cipla, Pfizer rose by between 0.96% to 4%.
Metal stocks fell on profit taking. Steel Authority of India (SAIL) fell 1.5%. The company reported a 32% growth in sales at 1.3 million tonne in December 2009 from a year ago
Tata Steel, the world's eighth-largest steelmaker fell 1.09%. The company said on Tuesday sales from its Indian operations rose 73% in December 2009 to 636,000 tonnes from a year earlier. India sales for the December 2009 quarter rose 49% to 16 lakh tonnes, the company said in a statement. The Indian operations account for about a quarter of the group's total annual global capacity of 30 million tonnes, which includes unit Corus, Europe's second-largest steelmaker.
Sales of flat products, used in automobiles and consumer durables, surged 90% in December, while sales of long products, primarily used in construction, rose 56%, Tata Steel said. The company's crude steel production in India rose 21%.
Steel companies are reportedly eyeing higher prices in 2010 as stronger economic growth worldwide drives up demand for the critical building material.
Recently, Tata Steel raised prices by Rs 2,000 a tonne, while state-owned Steel Authority of India (SAIL) withdrew the Rs 750-1,500 per tonne rebate it had started offering in November 2009, following the increase in raw material cost. Other secondary steel makers such as Bhushan Steel and Uttam Galva also raised the prices of their products on 5 January 2010.
Among non ferrous stocks, Sterlite Industries, Hindalco Industries, Hindustan Zinc, fell by between 0.13% to 2.45%.
National Aluminium Company fell 5.91% on profit taking after gaining 14.84% on Tuesday. As per recent reports, the state-run aluminium producer has hiked prices of rolled products by Rs 3,000 a tonne and other product prices by Rs 1,000 a tonne.
India's largest mobile services provider by sales Bharti Airtel fell 0.92% after gaining 1.57% on Tuesday on reports the firm has got approval from Bangladesh's telecoms authority for its proposed $300 million investment in Abu Dhabi Group's Warid Telecom.
India's second largest mobile services provider by sales Reliance Communications rose 0.22% after gaining 3.51% on Tuesday.
India's largest thermal power generator by sales NTPC fell 0.41%. The government plans to divest stake in the firm.
Among other power sector stocks, Reliance Power, Reliance Infrastructure and Torrent Power fell by between 0.81% to 2.36%.
Shipping companies rose, after the Baltic dry index, which tracks rates to ship dry commodities, surged 4.14% in London on Tuesday, 5 January 2010. Shreyas Shipping & Logistics, Shipping Corporation of India, Varun Shipping Company, Mercator Lines and Great Eastern Shipping Company rose by between 0.28% to 2.91%.
Auto stocks fell on profit taking. India's largest motorcycle maker by sales Hero Honda Motors fell 1.15%. Sales jumped 74% to 375,838 units in December 2009 over December 2008.
Bajaj Auto fell 1.35%. Bajaj Auto sold 2,20,429 two-wheelers in December 2009, registering an 85% growth in sales over the same month last year, when it sold 1,19,215 units.
TVS Motors fell 3.68% declining for the second straight day. Sales rose 34% to 119,701 units in December 2009 over December 2008.
India's largest car maker by sales Maruti Suzuki India fell 3.5%, extending previous session's losses as removal of incentives in Europe on car purchases may hit exports next year. Maruti Suzuki's managing director and chief executive officer, Shinzo Nakanishi was quoted by the media as saying on Tuesday that the company will see flat to lower exports next year because of the scrappage of incentives by Europe. He also said there would be lower offtake from Nissan for exports as a result of the removal of incentives.
Nakanishi said the company aims to keep operating margins at 10% in fiscal year 2009/10 but profitability will be impacted by a rise in raw material prices and a rise in the yen.
Maruti Suzuki India reported 50.6% increase in total vehicle sales to 84,804 units in December 2009 over December 2008. Domestic sales rose 36.5% to 71,000 units, while exports surged 223.7% to 13,804 units.
But, India's top truck maker by sales Tata Motors rose 0.14%. Tata Motors has raised prices of some truck and bus models in January 2010 by about 1%. The company expects commercial vehicle sales to remain strong in the next 12 months. The company's chairman Ratan Tata said on Tuesday that the company may consider launching its ultra-cheap Nano car in the United States in three years, following possible sales in Europe by the end of 2011.
Tata Motors registered 105% growth in sales to 51,627 units in December 2009 over December 2008.
India's largest tractor marker by sales Mahindra & Mahindra (M&M) advanced 2.39%. M&M marked its entry on Monday into the heavy commercial vehicle (HCV) segment with its unveiling of 25 and 31 tonne trucks with its US-based joint venture partner Navistar Inc.
Mahindra & Mahindra, reported 122% rise in its domestic sales to 22,754 units in December 2009 over December 2008. The company sold a total of 24,001 vehicles (domestic plus exports) in December 2009 as against 11,172 vehicles sold in December 2008.
India's largest engineering & construction firm by sales Larsen & Toubro fell 1.04% on profit taking after the stock rose for three consecutive days. The company said on Monday it won orders worth Rs 987 crore. The company said on Thursday 31 December 2009 it won two orders totaling Rs 580 crore.
Among other capital goods stocks, ABB, Bharat Heavy Electricals, AIA Engineering and Praj Industries fell by between 0.07% to 2.41%.
Banking stocks extended recent gains on reports credit offtake has picked up. According to the latest Reserve Bank of India (RBI) figures, total loans, including food credit loans to Food Corporation of India for foodgrain procurement and non-food credit (all other loans) amounted to Rs 29,41,293.07 crore as on 19 December 2009. This represents a sequential growth of Rs 34,028 crore since 27 November 2009 compared to a growth of Rs 7,698 crore in the whole of November 2009.
India's largest private sector bank by net profit ICICI Bank rose 0.86% as its ADR rose 1.43% on Tuesday. ICICI Bank has tied up with UK Trade and Investment to help Indian firms explore business opportunities in the British market. Through this tie-up, the bank will be able to provide value-added services such as training events and investment assistance to Indian firms looking at business opportunities in the UK. UK Trade and Investment is a government organisation that helps UK-based companies succeed in international markets.
India's largest bank by net profit and branch network State Bank of India rose 0.57%. The state-run bank paid advance tax of Rs 1795 crore versus Rs 1700 crore.
India's second largest private sector bank by net profit HDFC Bank was flat. Its ADR rose 0.43% on Tuesday.
Shares of DB Corp settled at Rs 265.90, at a premium of 25.42% over the initial public offer price of Rs 212. The stock debuted at Rs 250, a 17.90% premium over the initial public offer (IPO) price.
Cals Refineries clocked highest volume of 3.09 crore shares on BSE. D B Corp (1.99 crore shares), Kaashyap Technologies (1.63 crore shares), Mahindra Satyam (1.29 crore shares) and Ispat Industries (1.25 crore shares) were the other volume toppers in that order.
D B Corp clocked highest turnover of Rs 529.61 crore on BSE. Mahindra Satyam ((Rs 141 crore), Tata Steel (Rs 135.87 crore), JSW Energy (Rs 118.75 crore) and Reliance Industries (Rs 17.23 crore) were the other turnover toppers in that order.
Grey Market Premium - DB Corp, MBL Infrastructure
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| D.B. Corp. | 212 (For Retail Investor Rs. 210) | 25 to 30 |
| MBL Infra | 180 | 10 to 12 |
US stocks in search of direction
Pending home sales data weighs on stocks
US stocks lacked direction for almost the entire day on Tuesday, 05 January 2009. Stocks started the day in the red. But with the help of a late rally, two of the three major indices managed to finish in the green. Economic data that checked in for the day were mixed in nature. The dollar pared early losses and reversed its course following disappointing housing data.
At the end of the day on 05 January, 2010, the Dow Jones Industrial Average ended lower by 11.94 points at 10,572.02. Nasdaq ended higher by 0.29 points at 2308.71. S&P 500 ended higher by 3.53 points at 1136.52. Dow was trading lower by almost 46 points earlier during the day.
Six of the ten economic sectors ended higher for the day led by materials, energy, and financial sectors. Utilities and healthcare sectors lagged. Technology sector remained almost unchanged. Alcoa was a main Dow laggard while Kraft was a major Dow gainer.
Leadership from the broader financial sector helped stocks recover from some midmorning pressure that arouse from the home sales data.
In the currency market on Tuesday, the dollar index, which weighs the strength of dollar against the basket of six other currencies rose by almost 0.2% following disappointing home sales data. Earlier, dollar index was down by almost 0.2%.
The Commerce Department in US reported on Tuesday, 5 January 2009 that U.S. factory orders increased in November, 2009. Factory orders increased 1.1% in November, greater than the 0.8% expected by the market. This was the seventh increase in the past eight months. Excluding transportation goods, factory orders rose 1.9%. Excluding defense goods, orders rose 1.1%.
The report detailed that core capital equipment orders rose 3.6% in November. Orders for machinery rose 3.3%. Orders for electronics rose 3.1%. Orders for nondurable goods rose 1.8% led by petroleum products.
Separately, the National Association of Realtors in US reported on Tuesday, 5 January 2009 that pending home sales plunged a seasonally adjusted 16% in November 2009 from October 2009. The pending sales index, which had risen nine months in a row before falling in November, was 15.5% higher than in November 2008. October's increase was revised higher to 3.9% from 3.7% previously reported.
The federal tax credit for first-time buyers was set to expire on 30 November, 2009. But the same was ultimately extended through the first half of 2010, and it was also expanded to repeat buyers.
Kraft shares got a major boost today after the company announced that it has opted to sell its North American pizza business to Nestle in order to offer cash as part of its bid for Cadbury. Meanwhile, Kraft's proposal to issue stock to help it acquire Cadbury received criticism from Berkshire Hathaway's Warren Buffett, who suggested that Kraft's shares constitute an expensive currency. Berkshire reportedly owns less than 10% of Kraft's outstanding shares.
Crude prices ended little higher at Nymex on Tuesday, 05 January 2010 after it pared most of its gains as dollar reversed its course. Prices also went up as traders anticipate tomorrow's weekly inventory report to show drop in crude and gasoline stockpiles.
On Tuesday, crude-oil futures for light sweet crude for February delivery closed at $81.77/barrel (higher by $0.26 or 0.3%). Yesterday, crude had settled above $81 for the first time in two months. Prices have now risen for nine consecutive sessions and have gained 13% in that stretch.
Traders are anticipating that tomorrow's weekly inventory report by energy department will show crude and gasoline stockpiles to have dropped by 0.2 million and 0.5 million barrels last week respectively.
Barring Tata Motors, all the Indian ADRs registered healthy gains today. VSNL and MTNL were the largest gainers soaring 5.6% and 10.6% respectively. Tata Motors skid by almost 1%.
For tomorrow, there are a few economic and earning reports expected. The job cut and ADP employment reports are the economic ones expected.
DB Corp may see rousing start on debut
Shares of print media company DB Corp will debut on the stock markets on Wednesday, 6 January 2010. The company had fixed the issue price at Rs 212 per share, at the top end of the Rs 185-212 per share price band.
Tata Steel's sales from its Indian operations rose 73% to 636,000 tonnes in December 2009 over December 2008. India sales for the Q2 December 2009 quarter rose 49% to 1.60 million tonnes. Sales of flat products, used in automobiles and consumer durables, surged 90% in December, while sales of long products, primarily used in construction, rose 56%. The company's crude steel production in India rose 21% for the month.
Indian mobile operator Aircelhas signed a pact with Infosys Technologies to offer a range of mobile phone applications. Under the agreement, Infosys will implement its new application platform called Flypp for the Aircel project. Financial details of the agreement were not disclosed. Infosys launched Flypp, which mobile operators can use as a technology platform to offer a wide spectrum of applications, in December 2009.
Opto Circuits (India)'s unit Eurocor GmbH secured the Communite European mark for its Taxcor Plus, a new drug eluting stent, that will allow its sale in the world markets, except US and Japan. Drug eluting stents are placed in narrowed or diseased coronary arteries where they slowly release medicine to clear the blockage.
Banks and lenders have reportedly agreed to restructure the Rs 6000 crore debt of Jindal Stainless. Bankers have allowed promoters of the firm to repay half the debt in foreign currency, reports added.
Dishman Chemicals and Pharmaceuticals, the Ahmedabad-based leading player in the contract research and manufacturing services (Crams) space, is reportedly expecting growth of about 20 percent in the segment starting next fiscal. Crams refers to the outsourcing of activity to make active pharmaceutical ingredients (API) or the drug itself.
State-owned Steel Authority of India (Sail) may reportedly pull out of a proposed joint venture (JV) with Shipping Corporation of India after the shipping ministry set conditions that make the JV unworkable.
Market may extend recent gains on positive Asian stocks; DB Corp lists today
The market may extend recent gains on positive Asian stocks. US stocks closed flat on Tuesday on a mixed set of economic data. Expectations that government to continue with loose monetary policy may further support stocks.
Indian industry on Tuesday urged the government to continue with the fiscal stimulus at least for six months, as withdrawing them could choke faster recovery of the economy. In the customary pre-budget meeting with Finance Minister Pranab Mukherjee, industry representatives also damanded tax reforms through introduction of a Goods and Services Tax and reduction of the fiscal deficit. Leading industry bodies also wanted the easy monetary stance to continue. The Reserve Bank has already turned hawkish after food inflation neared 20 % by end of December
An adjustment in policy interest rates is not warranted for now but liquidity tightening may be needed, the prime minister's economic adviser C. Rangarajan recently said. Kaushik Basu, chief economic adviser to the finance ministry, also said on Monday that no monetary policy tightening measures are expected now. Rangarajan said the inflation rate could rise above 6 % by the end of the fiscal year in March. The central bank's inflation projection stands at 6.5 % with an upward bias for end-March, while some private economists expect it to reach about 8 percent. Some policymakers have said recently that food prices may drop in coming months and ease the pressure on the central bank to hike rates.
Meanwhile, the latest data showed that the rate of growth in manufacturing rose for the first time in three months in December 2009, with activity reaching its highest since May 2009 on sharp rises in new work and output. The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 Indian companies, rose to 55.6 in December from 53.0 in November. The reading was the strongest since May's 55.7, which was the strongest in 2009.
Data last month showed that corporate advance tax payments for the October-December 2009 quarter shot up sharply, suggesting a higher profit growth in corporate sector in the third quarter (October-December) of the current fiscal. Corporate advance tax payments for the quarter were up 44% to Rs 48,300 crore against a 3.7% decline in April-June quarter and a 14.7% increase in July-September quarter. The company-wise break-up of advance tax collection suggests a broad-based recovery with automobiles, cement, metals and consumer goods, doing well.
Coroprate tax collections increased 44% in December, suggesting a smart recovery in corporate performance and increasing the possibility of the government exceeding the overall direct tax collections target for the entire year and making up for the shortfall in indirect tax collections. Higher corporate tax collections have boosted overall direct tax collections that rose by 8.5% during April-December 2009 to Rs 2.5 lakh crore.
Shares of DB Corp will be listed on the bourses today. The company has set an issue price at Rs 212.
In global news, Asian stocks rose on Wednesday as Toyota Motor Corp.'s and Nintendo Co.'s U.S. sales reports boosted expectations demand in the world's biggest economy is recovering. The key benchmark indices in China, Hong Kong, Japan, Indonesia, South Korea, Singapore and Taiwan rose by between 0.07% to 0.56%.
In US markets, the S&P 500 and the Nasdaq rose on Tuesday as better-than-expected factory orders and a surge in vehicle sales at Ford Motor Co provided more evidence of an economic recovery. But a big decline in pending home sales, which fell in November for the first time in nine months, increased concerns about the housing market, capping the broad market's gains and pushing the Dow industrials into the red a day after all three major US stock indexes finished the first trading day of 2010 at the highest levels in over a year. The Dow Industrials slipped 11.94 points, or 0.1%, to 10,572.02. The Standard & Poor's 500 index rose 3.53 points, or 0.3%, to 1,136.52. The Nasdaq Composite Index was up 0.29 points, or less than 0.1%, to 2,308.71.
In economic data, pending-home sales tumbled 16% in November 2009, much steeper than the 5% drop expected and the 3.7% gain logged in October 2009. But factory orders rose 1.1% in November, more than double of what was expected.
Closer home, the key benchmark indices rose for the second straight trading day of 2010 tracking firm Asian stocks. Fears of an immediate hike in interest rates by the central bank receded following comments from government officials. The BSE 30-share Sensex rose 127.51 points or 0.73% to 17,686.24, its highest closing since 28 February 2008 on that day.
As per provisional figures on NSE, foreign funds bought shares worth Rs 970.29 crore and domestic funds bought shares worth Rs 299.89 crore on Monday.
Upper Ganges Sugar
We recommend a buy in the stock of Upper Ganges Sugar and Industries from a short-term perspective. It is apparent from the charts of the stock that the stock found support in the range of Rs 76 and Rs 80 during early November 2009 and bounced. Subsequently, it resumed the longer-term uptrend that has been in place since the December 2008 low of Rs 29, forming higher peaks troughs. Following a short-term sideways consolidation around Rs 90, the stock made an upward breakthrough by gaining 5 per cent on January 4. The stock's bullish momentum prolonged and the stock is well above its21- and 50-day moving averages. We notice that there has been an increase in volumes over the past three trading sessions. The daily as well as weekly relative strength indices are featuring in the bullish zone. A sign of optimism is observed in the moving average convergence and divergence indicators. Considering that the stock's longer-term uptrend-line is in tact, we are bullish from a short-term horizon. We expect it to move up until it hits our price target of Rs 116. Traders with short-term perspective can consider buying the stock with Rs 99 as stop-loss.
via BL
Daily News Roundup - Jan 6 2010
US fund house TIAA-CREF has exited ONGC and other Chinese energy companies over their investments in war-torn Sudan. (BS)
BHEL says it bagged 11.2GW orders from independent power producers between April 09 and December 09, comprising 94% of the total order inflow during this period. (BS)
BHEL has seen order intake worth Rs350bn in the first nine months of the current financial year. (BL)
Mobile service provider Aircel has entered into a partnership with Infosys Technologies to launch mobile application store. (BL)
Bangladesh's telecom regulator has approved Bharti Airtel's proposal to buy a 70% stake in Warid Telecom for about US$300mn. (BL)
HPCL's Mumbai refinery has rolled out the first batch of Euro IV MS [petrol] for meeting their north and north-west needs. (FE)
Maruti Suzuki said that it aimed to jack up its total output by 50% to 1.5mn units in five years to defend its 50% market share. (BS)
The RBI has barred foreign institutional investors from buying Maruti Suzuki shares citing the investment limit under the portfolio investment scheme has been reached. (FE)
Sterlite Industries has put on hold its proposed Rs23bn copper smelter expansion project at Tuticorin in southern Tamil Nadu as a dispute related to the project is being fought in the court. (ET)
Maharashtra Electrosmelt, a subsidiary of SAIL, will invest Rs2bn to set up a furnace with capacity of 42,000tpa at its Chandrapur plant. (ET)
Sobha Developers plans to launch projects worth Rs28bn over the next 12-18 months covering 8mn square feet. (BS)
Axis Bank launched the ‘Power Advantage Home Loan’ scheme which offers housing loans at a fixed interest rate of 8.25% p.a. for the first two years and a floating rate of interest thereafter. (BL)
The Supreme Court issued a notice to Nestle India on the plea of the I-T department seeking adjudication on the issue of whether MAT falls within the meaning of ‘advance tax’ so as to enable the company to set off against tax payable in assessment year 1998-1999. (ET)
The government will examine Sun Pharma’s post marketing surveillance studies and clinical trials report of breast cancer medicine Letrox to decide whether the drug should be banned from being marketed. (ET)
Tel Aviv district court on Monday ruled in Taro's favour in one case filed by Sun Pharma. (FE)
IVRCL bagged Rs9.6bn worth of contracts in transportation, water and irrigation, buildings and power sectors. (FE)
Century Real Estate Holdings, the realty development arm of Century Group, plans to raise Rs7bn to expand its development initiatives. (BS)
MTNL is introducing VDSL2 (Very high speed digital subscriber line) service which will provide 100Mbps symmetrical traffic on short copper loops. (BL)
Indian shipping companies, such as Great Offshore, Chowgule Ports and Infrastructure and Bharati Shipyard, are investing in creating repair facilities, a market pegged at around Rs20bn annually. (ET)
Uttam Galva Steels, one of the leading manufacturer and exporter of value added steel, increased prices of its products by Rs3,000/ton. (BL)
L&T Infotech bagged two turnkey ERP projects from the Indian Railways for automating the maintenance of its wagon fleet and diesel locomotives. (BL)
The Anil Ambani-promoted Reliance Big Pictures which is distributing the movie is planning to add new screens in the third week of the movie's release buoyed by the response of the audience. (BL)
Rising raw material prices will result into FMCG companies increasing prices or reduce grammage per pack over the next one or two quarters. (BS)
Mukesh Ambani and Anand Jain promoted Mumbai SEZ Ltd has suspended its land acquisition for the MahaMumbai SEZ in coastal Raigad for an indifinite period. (BS)
Karnataka government has granted in-principle approval to ArcelorMittal’s and Posco’s proposal to invest Rs300bn and Rs323bn respectively for setting up a steel plant. (BS)
Infinite Computer Solutions plans a public issue to raise around Rs1.9bn at the upper end of the price band of Rs155-165/share. (BL)
TCG Lifesciences, the Rs4bn clinical research organisation (CRO), has entered into an exclusive collaboration with the US-based pharma giant, Pfizer, to develop a portfolio of pre-clinical molecules for discovery of new drugs. (ET)
A healthy increase in corporate tax receipts pushed direct tax collections in December 09 to Rs664.1bn, up 24.5% from Rs533.5bn collected in the month a year ago. (BS)
Indian industry has urged the government to continue the stimulus package till the middle of the next financial year to help the economy achieve robust growth. (BS)
The center announced sops for the food processing industry including separate policy at the state level, thrust on contract farming and making the sector tax-free. (BS)
Medium and small scale drug manufacturing units in Madhya Pradesh have alleged that they are being ignored in the new drug manufacturing policy of the state government, likely to be effective from March this year. (BS)
Union Minister of State for Textiles said the domestic textile sector was recovering from recession and is showing positive growth. (BS)
Political disturbance over the demand for a separate Telangana state is forcing information technology companies to shift. (BS)
India has dropped projects located in Arunachal Pradesh from its list of projects to be funded by the Asian Development Bank in 2010. (BS)
The power ministry is seeking an over 56% increase in the gross budgetary support for its planned outlay, at Rs144.3bn, for 2010-11 primarily for the R-APRDP and RGGVY programmes. (BS)
The Union minister for New and Renewable Energy said the government is negotiating ethanol prices at Rs26-27/litre and is likely to be finalised this month. (ET)
The Planning Commission has asked the finance ministry for a substantial hike in the budgetary support for Central ministries and departments for the coming fiscal to meet the expansionary aspirations’’ in various sectors, especially education, a government official has said. (ET)
Pension regulator PFRDA will launch a low-cost pension scheme on April 1 to provide social security cover to economically weaker sections. (ET)
Not many worries as yet!
Happiness is not the absence of problems but the ability to deal with them.
The bulls seem to be a happy lot; they don’t have many issues to deal with for now (except perhaps a round of profit-booking soon). The good news is that money is still flowing into Indian stocks, both from overseas and local investors. Risk appetite seems to be intact despite some worries on valuations and uncertainty over the prospects for the year. So far we’ve not got any real bad news from any corner of the world.
If the current positive trend persists, the Nifty can comfortably pierce the 5300 milestone today. Beyond that it could face resistance at 5310 and 5360. The bull camp is talking about levels of 5500-5600 in the medium term, provided there are no nasty surprises. But, this is just the beginning of 2010.
A subdued recovery in matured economies could possibly drag the market down. Dollar’s movement is another key variable that might swing the pendulum either way. For now though it looks like policymakers are likely to maintain status quo on various stimulus steps. Any unwinding of stimulus measures would be done in a gradual manner.
Another bout of weakness in the dollar lent further support to commodities and the global equity rally on Tuesday. But, the US currency turned higher against the euro and pared declines against other rivals, after a steep drop in pending home sales fueled demand for the greenback as a safe-haven currency.
The dollar index, which tracks the US currency against a trade-weighted basket of six major rivals, rose to 77.63, up from 77.503 late on Monday and 77.34 earlier in the session. The greenback had initially extended session losses after reports showed a bigger-than-expected gain in factory orders in November.
Meanwhile, copper dipped on Tuesday after hitting a 16-month high in the previous session, but crude oil maintained its upward momentum and sugar prices extended their record-breaking run. Surge in risk appetite and renewed hopes on an economic recovery was also in play.
Ratings agencies cut their views for Iceland, after the country's president vetoed legislation that would have repaid the UK and the Netherlands for bailing out depositors of a failed Icelandic bank, potentially imperiling rescue loans for the embattled country.
US stocks ended nearly flat after a choppy session as investors considered a volatile dollar, a slew of auto sales and reports on pending home sales and factory orders. The Dow Jones Industrial Average lost 12 points, or 0.1%. The S&P 500 index added 3 points, or 0.3%. The Nasdaq was barely changed.
After the three leading indexes climbed to fresh 15-month highs on Monday, a weak dollar on Tuesday initially gave a push to dollar-traded commodities and select stocks that do business overseas. But the dollar turned mixed by the late afternoon, diluting its impact.
A late-session advance in the influential banking sector helped the market find its footing late in the session, with the KBW Bank index adding 2.2%.
US stocks had a strong year, in which the broad S&P 500 managed to gain over 23% despite touching a more than 12-year low in March. Between that March 9 low point and year end, the S&P 500 gained 65%.
The trend in 2010 will likely remain up, but that the gainers will be a more selective bunch than last year, when most areas of the market advanced. There is still a lot of money on the sidelines, which could make way into the market if corporate earnings are good.
Homebuyers signed 16% fewer sales contracts in November than in December, according to a National Association of Realtors report released in the morning. Economists had expected the report to show that pending home sales fell 2% in November after rising for 9 straight months. Still, sales were up 15.5% from November 2008.
The November setback reflected the near-expiration of the government's first-time homebuyers tax credit. Buyers jumped in when the credit was expected to expire on Nov. 30. But once it was announced that it was being extended through June, the buying frenzy lost momentum.
Another report showed that factory orders increased by 1.1% in November after climbing 0.8% in October. Economists thought orders would grow by 0.5%.
A third report showed that severe unemployment worsened in big cities in November. The government reported that 17 of 372 metropolitan areas surveyed had unemployment rates of at least 15% in November up from 15 areas in October.
Kraft Foods sweetened its $16.4 billion hostile takeover offer for British chocolate maker Cadbury, providing a partial cash-alternative to its already announced deal. The funding would come from Kraft's sale of its frozen pizza business to Swiss food company Nestle for $3.7 billion in cash, a deal announced early on Tuesday.
Separately, Nestle said that it won't bid for Cadbury. But Berkshire Hathaway, the conglomerate run by influential investor Warren Buffett and Kraft's largest shareholder, said that it is voting "no" on Kraft's request to issue as many as 370 million shares to help finance the bid for Cadbury.
Berkshire said that allowing this would essentially be giving Kraft a blank check.
Kraft extended its deadline for the Cadbury offer to Feb. 2. Kraft shares rallied nearly 5%.
Google released its Nexus One smartphone, the first mobile device entirely designed by the company. Previously, Google had designed mobile software such as Google Maps and also released its Android operating system.
Also, Apple said on Tuesday that the number of iPhone applications downloaded from its App store has topped 3 billion. Late on Monday, a Wall Street Journal report said that Apple will ship its much-anticipated tablet computer in March, following a January unveiling.
US automakers reported improved December sales at the end of their worst year in decades.
Ford Motor's US sales jumped 34% in December versus a year ago and over 50% versus the previous month. But Ford's sales for the full year fell 15%. Rival General Motors said that sales fell 6% in December versus a year ago, but said that sales rose 38% from November. For the full year, GM said that sales fell 30%.
Among other companies reporting, Chrysler said that sales in December fell 4% versus a year ago and up 36% from November. Chrysler also dropped 36% for the year and sold fewer than a million vehicles, its worst year since the early 1960s.
The dollar gained versus the euro and fell against the yen.
COMEX gold for February delivery gained 40 cents to settle at $1,118.70 an ounce. Gold closed at an all-time high of $1,218.30 an ounce last month.
US light crude oil for February delivery rose 26 cents to settle at $81.77 a barrel on the New York Mercantile Exchange, the highest close since October 2008.
Treasury prices rose, lowering the yield on the 10-year note to 3.75% from 3.82% late on Monday.
European stocks ended a choppy session virtually unchanged, giving up early gains as Cadbury fell in the wake of Nestle's decision to take itself out of the running for the UK chocolate maker. After a 1.8% gain in the first trading session of the year on Monday, the pan-European Dow Jones Stoxx 600 finished the day down 0.06 point at 257.59.
Novartis shares fell for a second day, losing 1.8%, following the company's $39 billion plan to buy the rest of Alcon it didn't already own.
The UK's FTSE 100 climbed 0.4% to close at 5,522.50, as the Royal Bank of Scotland jumped 10.3% to rally for a second day and as Barclays gained 6.3%.
Bulls extended gains on Tuesday ending on a new closing high. The rally was led by metals and realty stocks. The Mid-Cap and the Small-Cap stocks also healthy attracted buying. Strong manufacturing data, favorable comments from Fed officials and overnight gains in the US and Asia had an overall positive effect.
The BSE Sensex advanced 128 points to end at 17,686 after touching a high of 17,729 and a low of 17,578. The Nifty advanced 46 points to end at 5,278.
Equity markets in Asia were positive. The Nikkei in Japan was up 0.25%, while Australia's S&P/ASX ended higher by 1%. The Shanghai SE Composite gained 1.25% and Hang Seng index in Hong Kong was up 2%.
In Europe, stocks were trading flat. The DAX in Germany was down 0.2% and the CAC 40 index in France was down 0.2%. The FTSE in the UK was flat.
Coming back to India, among the BSE sectoral indices, the Metals index was the top gainer, adding 4%, followed by the Realty index that was up 1.2% and the BSE Teck index was up 1%. Even the BSE Mid-Cap index gained 1.2% while the BSE Small-Cap index was up 1%.
Among the 30-components of Sensex, 23 stocks ended in the positive terrain and 7 ended in the red. Hindalco, JP Associates, Sterlite Industries, RCom and Grasim were among the top gainers.
On the other hand, among the major losers were Maruti, Tata Motors, ACC, NTPC and Reliance Industries.
Outside the frontline indices, the big gainers in the broader market were MTNL, Gujarat NRE Coke, SCI, CESC and Tata Communication. On the other hand, losers included Videocon Ind, Central Bank, Fortis Health and Indian Hotels.
Bharti Airtel's US$300mn initial investment proposal for acquiring 70% stake in Warid has been approved by the Bangladesh telecom regulator.
Chairman Zia Ahmed of Bangladesh Telecommunication Regulatory Commission (BTRC) was quoted as saying "We have approved Bharti Airtel's plan to buy the Warid stake".
"We hope Airtel investment would cross US$1bn within the next few years," Ahmed said. He further added, "Whatever price Airtel is going to pay for Warid stake, as per law, 5.5% of the deal amount must go to BTRC".
Shares of Bharti Airtel gained by 1.6% to end at Rs330. The scrip opened at Rs325 it touched an intra-day high of Rs332 and a low of Rs325 and recorded volumes of over 1mn shares on BSE.
Maruti Suzuki announced that it plans to create a new segment with the launch of its new 7 seater family car, MD & CEO, Shinzo Nakanishi was quoted as saying. The company showcased its new MPV Multi Purpose Vehicle at the auto show in Delhi.
Nakanishi said that Maruti Suzuki hopes to maintain sales growth in calendar 2010 despite rising raw material costs, inflation and the rise of the yen against the rupee.
"This is not an easy job this year with so many new cars being launched," he said, when asked if Maruti will be able to maintain its 50% market share. "We have to make preparations for this," he added.
Separately, the company’s finance head Ajay Seth was quoted as saying that Maruti Suzuki will decide later this month on a proposal to expand capacity.
The company has cash reserves of Rs50bn and will utilize that for the expansion, he said. Maruti has no plans to take loans, Seth said.
Maruti Suzuki expects sales this fiscal year (FY10) to reach a record 1 million units, Nakanishi said in New Delhi today.
Shares of Dr. Reddy’s Labs surged by over 3% to end at Rs1177 after the company along with Rheoscience announced that their Balaglitazone diabetes drug has met its primary target in the first of its phase 3 clinical trials.
Balaglitazone reduced blood glucose levels over a period of time in the study conducted on 409 patients, D. Reddy’s said in a statement.
Opto Circuits announced that Eurocor GmbH the Company's wholly owned subsidiary has received the CE (Communite European) Mark approval for marketing and sale of its novel Drug Eluting Stent-Taxcor Plus in world markets (sans US and Japan).
Taxcor Plus is on a Cobalt Chromium platform with Stent struts of 0.0025", which is one of the thinnest struts available in the industry. The stent is coated with Paclitaxel (1 pg/mm 2).
The stock shot up by over 4.5% to end at Rs237. The scrip opened at Rs230 it touched an intra-day high of Rs239 and a low of Rs228 and recorded volumes of over 0.46mn shares on BSE.
Shares of Sadbhav Engineering advanced by over 2% to end at Rs1235 after the company announced that it won project worth Rs13.50bn of "4 laning of Rohtak to Panipat Section of NH-71A from km 0.000 (Km 63.30 of NH-10) to km 80.858 (Km 83.50 of NH-1) in the state of Haryana on BOT basis under NHDP Phase-III." from The General Manager (Tech)-P&H, National Highways Authority of India (Ministry of Road Transport and Highways) G-5&6, Sector-10, Dwarka, New Delhi-110075.
The Concession Period of the project is 25 (Twenty Five) years inclusive of construction period of 910 Nine Hundred Ten) days from Appointed Date.
Shares of Viceroy Hotels were locked at 10% upper circuit at Rs54.35 after the company announced that the board of directors will meet on January 07, 2010, to consider and approve the raising of long term resources for the company
through issue of fresh equity shares.
To consider and approve the additional sanctions of Rs1.13bn to part finance the Bangalore Hotel Project from Syndicate Bank, Canara Bank, IDBI Bank, Allahabad bank and Lakshmivilas Bank and authorise the MD to execute the necessary loan agreements and also to consider the proposal to re-structure the Company's hotel assets.
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