Market Review - Jan 7 2010
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Thursday, January 07, 2010
Post Market Commentary - Jan 7 2010
Indian equity ended the day on a weak note. The markets which belled the day on a flat note and immediately slipped into the negative terrain. Intense profit booking was seen in some of the frontline stocks of IT, Auto and FMCG stocks.
However, significant buying which was witnessed in Oil&Gas, Consumer Durables and Banking stocks provided support to the markets.
Stocks retreated in Asia, snapping four days of gains, while oil declined after China, the engine in the global recovery, curbed lending growth. The rate on Chinese three-month bills rose for the first time in 19 weeks. The MSCI Asia Pacific Index fell 0.3% to 123.68 at 5:20 p.m. in Tokyo.
European stocks fell from the highest levels in more than 15 months after China, the driver of the global recovery, took steps to curb lending growth. US index futures dropped.
The Sensex ended the day with a loss of 85.41 points, or 0.48% at 17,615.72 after touching a high of 17,733.34 and a low of 17,566.54. The broad-based NSE Nifty fell 18.70 points, or 0.35% at 5,263.10 after hitting a high of 5,302.55 and a low of 5,244.75.
BSE Midcap ended the day on a negative note down by 0.02%. On the other hand, BSE Smallcap ended on a positive note up by 0.67%.
Major gainers in the 30-share index were Hindalco Industries (2.40%), Reliance Industries (1.51%), Tata Steel (1.16%), Reliance Communications (0.96%), Bharti Airtel (0.64%), and ACC (0.61%).
On the other hand, Tata Motors (3.37%), Tata Consultancy Services (2.61%), Grasim Industries (2.53%), Hero Honda Motors (2.51%), Infosys Technologies (2.30%), and Wipro (2.25%) were the major losers in the Sensex.
Overall market breadth was positive. Out of the total 2,969 shares traded at BSE, 1,638 advanced, 1,237 declined while 94 remained unchanged.
Major gainers in the sectoral indices were BSE Oil & Gas which climbed 1.24%, Consumer Durables gained 1.11%, Metal gained 0.07%, Power rose 0.17%.
Among major losers in the sectoral indices - BSE IT fell 2.22%, Auto dropped 1.72%, TECk went down 1.48%, HC fell 0.95% and Realty dropped 0.63%.
``The trend remains up but the undercurrent is soft. The market is expected to remain range bnound with boundaries being 5,150 and 5,350,`` said Avinash Gupta, AVP Research Equity, Bonanza Portfolio while opining on the trends of the equity market for tomorrow.
Inflation:
Food price inflation witnessed a marginal decline for the week ended December 26 to stand at 18.22% as against 19.83% in the previous week due to lower prices of fruits & vegetables (6%), gram (3%) and tea (1%).
Inflation for primary articles stood at 14.39% (y-o-y) for the week ended Dec. 26, 2009 as compared to 15.49% (y-o-y) for the previous week.
Asian Equities Pare Latest Gains
Most of the indices end lower on concerns China may tighten monetary policy soon
Asian equities slipped as the fears over monetary tightening in China came to the fore to haunt the sentiments and made the early 2010 gains fizzle out. Negative cues from the US stock futures also played their role as most Asian equities dropped. Chinese shares lost heavily as the domestic central bank moved to tighten liquidity in the money markets, stocking fears interest rate increases could come sooner than expected.
Other regional markets also finished mostly lower after an uninspiring performance on Wall Street left investors unwilling to chase stocks higher after their recent gains.
Japan's Nikkei 225 Average fell 0.5% to 10681.66 after flirting with gains a few times during a choppy session. Hong Kong's Hang Seng Index shed 0.7%, Australia's S&P/ASX 200 lost 0.5%, South Korea's Kospi fell 1.3% and Taiwan's Taiex gave up 1.1%.
China's Shanghai Composite lost 1.9% to finish at 3192.78, extending losses after the People's Bank of China sold 60 billion yuan ($8.78 billion) worth of three-month bills at 1.3684%, increasing the yield on such bills for the first time since August, from 1.3280%. The Shenzhen Composite index also dropped 1.9%, to 1,179.99.
China's central bank said Wednesday it aimed to keep inflation in check in 2010 while maintaining its pro-growth monetary policy as the world's third-largest economy recovers from the financial crisis. In a statement outlining its tasks for this year, the People's Bank of China said it would adjust its policies "at appropriate times and by appropriate levels" based on economic and financial market changes in China and overseas. The central bank said it would seek to ensure "stable prices" and to "effectively manage inflation expectations" as well as keep the yuan exchange rate "basically stable", according to the statement posted on its website.
The Indian markets took a breather after strong gains in the past four trading sessions that sent the key benchmark indices to 22-month closing highs on Wednesday. The BSE 30-share Sensex was provisionally down 111.87 points or 0.63%.
US Stocks finished on opposite sides of the unchanged mark Wednesday, as traders largely shrugged off another mixed batch of economic data. The major averages saw another choppy outing, lingering near the fifteen-month highs posted at the end of Monday's strong rally.
On the economic front, the Federal Open Market Committee released the minutes for its December meeting, indicating some debate among members regarding inflation risk following the government's massive stimulus measures.
Meanwhile, private payroll processor ADP reported that private sector employment decreased by 84,000 in December, slightly better than the 90,000 decline expected by economists.
The Dow gained 1.66 points, or less than a tenth of a percent, to end at 10,573.68 and the S&P 500 rose by 0.62 points, or 0.1 percent, to close at 1,137.14, while the Nasdaq lost 7.62 points, or 0.3 percent, to finish at 2,301.09.
The US stock futures are down 33 points in screen trade. In the commodity market, benchmark crude for February delivery was down 69 cents to $82.49 a barrel in electronic trading
BSE Bulk Deals to Watch - Jan 7 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
7/1/2010 513149 Acrow India PRATIMA BAPI ROY B 3573 150.32
7/1/2010 513149 Acrow India SURESHCHANDRA RANCHHODLAL SHAH B 3501 142.14
7/1/2010 513149 Acrow India NEELABEN SURESHCHANDRA SHAH B 3500 147.35
7/1/2010 513149 Acrow India SURESHCHANDRA RANCHHODLAL SHAH S 3501 147.38
7/1/2010 513149 Acrow India NEELABEN SURESHCHANDRA SHAH S 3500 142.14
7/1/2010 531400 Almondz Glob LMR MARKETING PRIVATE LIMITED S 115000 49.32
7/1/2010 531519 Ankush Finstock RAJENDRA CHIMANLAL TRIVEDI S 60000 3.29
7/1/2010 531881 Arvind Chem BHAVESH SHANTILAL TRIVEDI B 119500 24.26
7/1/2010 531881 Arvind Chem OMPARKASH GUPTA B 101097 23.86
7/1/2010 531881 Arvind Chem BHAVESH SHANTILAL TRIVEDI S 119500 23.74
7/1/2010 531881 Arvind Chem OMPARKASH GUPTA S 102096 23.86
7/1/2010 503940 Asian Elect SHAH INVESTMENTS FINANCIAL DEV & CON PRIVATE LIMIT S 220000 41.77
7/1/2010 505506 Axon Infotech JALAN FINVEST PVT LTD B 4370 19.91
7/1/2010 531591 Bampsl Sec KAUSHALYA GARG B 400000 0.71
7/1/2010 531337 Channel Guide Naman Securities & Finance Pvt. Ltd. B 118146 22.53
7/1/2010 531337 Channel Guide JMP SECURITIES PVT LTD B 162653 21.83
7/1/2010 531337 Channel Guide PRITESH PRAVINCHANDRA VORA B 40000 23.05
7/1/2010 531337 Channel Guide VICKY RAJESHBHAI JHAVERI B 30000 22.09
7/1/2010 531337 Channel Guide RAJESH MAMANIA B 50000 21.80
7/1/2010 531337 Channel Guide JHAVERI TRADING & INVESTMART PVT LTD B 55000 22.56
7/1/2010 531337 Channel Guide JHAVERI TRADING AND B 105000 22.21
7/1/2010 531337 Channel Guide CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 50006 22.25
7/1/2010 531337 Channel Guide AMIT MANILAL GALA B 42510 22.61
7/1/2010 531337 Channel Guide MECHNO SALES AGENCIES (P) LTD. B 50000 22.10
7/1/2010 531337 Channel Guide CHARMI SANDEEP KAMDAR B 50000 21.80
7/1/2010 531337 Channel Guide ANGEL INFIN PRIVATE LIMITED B 481984 22.31
7/1/2010 531337 Channel Guide NARESH CHAND JAIN B 68834 22.22
7/1/2010 531337 Channel Guide CHETAN DOGRA S 36500 22.43
7/1/2010 531337 Channel Guide AMIT MANILAL GALA S 42510 22.66
7/1/2010 531337 Channel Guide MANOJ HIRACHAND MOTTA S 38000 22.17
7/1/2010 531337 Channel Guide PREMLATA RAMESH SARAOGI S 80349 22.10
7/1/2010 531337 Channel Guide HARISH TARSEM MITTAL S 76973 21.82
7/1/2010 531337 Channel Guide CHETAN DOGRA HUF S 47900 23.02
7/1/2010 531337 Channel Guide HARISH TARSEM MITTAL S 47500 21.80
7/1/2010 531337 Channel Guide MECHNO SALES AGENCIES (P) LTD. S 50000 22.12
7/1/2010 531337 Channel Guide CHARMI SANDEEP KAMDAR S 50000 22.49
7/1/2010 531337 Channel Guide ANGEL INFIN PRIVATE LIMITED S 476188 22.33
7/1/2010 531337 Channel Guide SAMIR HARINDRA PATEL S 50000 22.28
7/1/2010 531337 Channel Guide NARESH CHAND JAIN S 62834 22.03
7/1/2010 531337 Channel Guide Naman Securities & Finance Pvt. Ltd. S 90586 22.28
7/1/2010 531337 Channel Guide JMP SECURITIES PVT LTD S 162653 22.43
7/1/2010 531337 Channel Guide JIGAR DIPAKKUMAR SHAH S 40000 22.29
7/1/2010 531337 Channel Guide PRITESH PRAVINCHANDRA VORA S 40000 22.89
7/1/2010 531337 Channel Guide CHETAN DOGRA S 59750 22.41
7/1/2010 531337 Channel Guide CHIMANLAL MANEKLAL SECURITIES PVT.LTD S 50506 22.12
7/1/2010 512093 Cranes Soft TRANSGLOBAL SECURITIES LTD. B 1116181 30.70
7/1/2010 512093 Cranes Soft TRANSGLOBAL SECURITIES LTD. S 1118181 30.70
7/1/2010 517973 DMC Intl J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 63982 28.13
7/1/2010 517973 DMC Intl ATUL MITTAL B 94600 28.22
7/1/2010 517973 DMC Intl CENTENARY SOFTWARE PVT LTD B 73761 28.85
7/1/2010 517973 DMC Intl CENTENARY SOFTWARE PVT LTD S 62801 28.25
7/1/2010 507528 Eastern Sugar AMREX MARKETING PVT. LTD. S 75000 12.15
7/1/2010 530337 Exelon Infra KAMALA KANTA GUPTA B 96000 54.42
7/1/2010 530337 Exelon Infra KAMALA KANTA GUPTA B 46000 54.38
7/1/2010 530337 Exelon Infra I K PROJECTS PRIVATE LIMITED S 50000 54.42
7/1/2010 530337 Exelon Infra GANESH KUMAR DHANUKA S 33519 54.37
7/1/2010 511676 GIC Housing CALEDONIA INVESTMENTS PLC S 1243697 92.85
7/1/2010 532857 Glory Polyfilms JYOTI PORTFOLIO LIMITED S 95000 28.29
7/1/2010 532439 Goldstone Infra RAJASTHAN GLOBAL SEC LTD S 185000 33.16
7/1/2010 500174 Gujarat Lease GUJARAT INDUSTRIAL INVESTMENT CORPORATION LTD S 210300 6.02
7/1/2010 511682 IFL Promoters VEENA GUPTA B 61600 10.12
7/1/2010 511682 IFL Promoters CENTENARY SOFTWARE PVT LTD B 58341 10.12
7/1/2010 511682 IFL Promoters DMC INTERNATIONAL LIMITED B 60000 10.12
7/1/2010 511682 IFL Promoters VEENA GUPTA S 60600 10.12
7/1/2010 511682 IFL Promoters CENTENARY SOFTWARE PVT LTD S 66268 10.12
7/1/2010 511682 IFL Promoters DMC INTERNATIONAL LTD S 18025 10.12
7/1/2010 511682 IFL Promoters SHARK COMMUNICATION PVT LIMITED S 27000 10.12
7/1/2010 531447 Insutech India LAKHOTIYA SANTOSH B 40000 5.79
7/1/2010 531447 Insutech India SUSHMA LAKHOTIYA B 40000 5.78
7/1/2010 531447 Insutech India PUSHPADEVI LAKHOTIYA B 40000 5.78
7/1/2010 531447 Insutech India MANJU LAKHOTIYA B 40000 5.80
7/1/2010 531447 Insutech India KAUSHALYABAI LAKHOTIA B 40000 5.79
7/1/2010 531447 Insutech India ANITHA LAKHOTIYA B 40000 5.80
7/1/2010 531447 Insutech India ADITYA DHARMENDRA GOYAL B 102863 5.80
7/1/2010 531447 Insutech India LATA DHARMENDRA GOYAL B 200000 5.79
7/1/2010 531447 Insutech India ANJALI ADITYA GOYAL B 200000 5.79
7/1/2010 531447 Insutech India YOGEETA KASHIRAM KADAM S 142200 5.78
7/1/2010 531447 Insutech India CHIRAG SECURITIES S 163280 5.79
7/1/2010 531447 Insutech India VRPFINANCIALSERVICES PVTLTD S 187873 5.80
7/1/2010 531447 Insutech India HANDFUL INVESTRADE PVT LTD S 300000 5.79
7/1/2010 523467 Jai Mata Glass GROWMORE PROPERTIES PVT LTD S 119336 2.64
7/1/2010 532283 Kaashyap Tech HITEN MEHTA B S 4865174 0.81
7/1/2010 532283 Kaashyap Tech PRIYESH ARVIND BHATT S 5000000 0.82
7/1/2010 532283 Kaashyap Tech TAIB SEC MAURITIUS LTD S 10000000 0.83
7/1/2010 530255 KAY Power KAUSHALYA GARG B 60000 13.32
7/1/2010 530255 KAY Power SUNDER DASS AGARWAL B 102229 13.44
7/1/2010 530255 KAY Power KAUSHALYA GARG S 177546 13.45
7/1/2010 524000 Magma Fin NAMOKAR COMMERCIAL PVT LTD S 93361 165.06
7/1/2010 531515 Mahan Inds YOGENDRA KUMAR GUPTA S 150000 32.68
7/1/2010 516007 Mangalam Timb TRANSGLOBAL SECURITIES LTD. B 249942 42.57
7/1/2010 516007 Mangalam Timb TRANSGLOBAL SECURITIES LTD. S 249942 42.68
7/1/2010 531834 Natura Hue Chem CHETAN DOGRA B 35000 35.57
7/1/2010 531834 Natura Hue Chem CHETAN DOGRA B 38745 34.72
7/1/2010 531834 Natura Hue Chem CHETAN DOGRA S 35436 34.34
7/1/2010 511551 Networth Stock NETESOFT INDIA LTD B 375000 53.66
7/1/2010 511551 Networth Stock INDIA TECHNOLOGY INVESTMENTS PVT. LTD B 100000 50.68
7/1/2010 511551 Networth Stock ALBULA INVESTMENT FUND LTD S 550000 54.45
7/1/2010 511551 Networth Stock GANESH KUMAR SINGHANIA S 100000 50.50
7/1/2010 590090 Octant Inter INDIUM HOME CARE PRIVATE LTD S 396763 12.48
7/1/2010 531496 Omkar Overseas RONIT SATYANARAIN AGARWAL S 25000 50.25
7/1/2010 524628 Parker Agro KAIZEN STOKTRADE PRIVATE LIMITED B 68600 17.44
7/1/2010 524628 Parker Agro JYOTHI CHOKKARAPU S 83500 17.33
7/1/2010 511702 Parsharti Inv KRUPA SANJAY SONI B 33311 38.03
7/1/2010 511702 Parsharti Inv PALAK AGENCY PVT LTD B 52140 37.97
7/1/2010 511702 Parsharti Inv KRUPA SANJAY SONI S 26712 38.06
7/1/2010 511702 Parsharti Inv BHAVESH SHANTILAL TRIVEDI S 39673 37.25
7/1/2010 511702 Parsharti Inv SANJAY JETHALAL SONI S 25000 37.15
7/1/2010 532803 Pochiraju Inds BP FINTRADE PRIVATE LIMITED B 121640 23.06
7/1/2010 532803 Pochiraju Inds BP FINTRADE PRIVATE LIMITED S 121633 23.10
7/1/2010 531855 Prabhav Inds SHREENATHJI FINSTOCK PVT LTD S 84000 51.17
7/1/2010 509839 Punjab Wool NEERAJ KUMAR AGGAWRAL S 100000 5.31
7/1/2010 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA B 117242 34.31
7/1/2010 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA S 51475 34.03
7/1/2010 502587 Rama Pulp PRABHA FARMS PVT LTD S 60000 34.75
7/1/2010 533083 RISHABHDEV MAHESH MEETAL B 193614 17.70
7/1/2010 533083 RISHABHDEV MAHESH MEETAL S 193614 17.26
7/1/2010 531898 Sanguine Media MAHESHKUMAR KAPILDEV SINGH S 74000 3.52
7/1/2010 532663 Sasken Comm NORTEL NETWORKS MAURITIUS LTD S 235000 186.82
7/1/2010 505590 Scenario Media SANTOSH DEVI AGGARWAL B 4000 153.95
7/1/2010 505590 Scenario Media PREMLAL ROY S 6850 153.95
7/1/2010 526981 Shri Bajrang ANANT PRAKASH KABRA B 45000 33.37
7/1/2010 526479 SKY Inds V R M SHARE BROKING PRIVATE LIMITED S 45000 84.98
7/1/2010 590072 Sundaram Brake BINIT RAMESHCHANDRA SHAH B 20000 214.91
7/1/2010 590072 Sundaram Brake BP FINTRADE PRIVATE LIMITED B 15092 228.08
7/1/2010 524156 TCM MURALIDHARAN TP B 30000 23.10
7/1/2010 531917 Twinstar Soft SANDEEP AGARWAL B 108000 4.17
7/1/2010 500464 UCAL Fuel MATRIX EQUITRADE PVT. LTD. B 145960 97.43
7/1/2010 500464 UCAL Fuel OPG SECURITIES P LTD B 311926 98.57
7/1/2010 500464 UCAL Fuel Naman Securities & Finance Pvt. Ltd. B 117166 101.78
7/1/2010 500464 UCAL Fuel TRANSGLOBAL SECURITIES LTD. B 114345 98.12
7/1/2010 500464 UCAL Fuel TRANSGLOBAL SECURITIES LTD. S 112680 98.92
7/1/2010 500464 UCAL Fuel MATRIX EQUITRADE PVT. LTD. S 145960 97.84
7/1/2010 500464 UCAL Fuel OPG SECURITIES P LTD S 308976 98.70
7/1/2010 526987 Urja Glob UMA GOEL S 18283 62.15
7/1/2010 531874 Venus Ventures AYODHYAPATI INVESTMENT PVT LTD S 41474 12.16
7/1/2010 532360 Vintage Cards DHARMENDRA CHAMPAKLAL SHAH S 3173 20.00
7/1/2010 511147 Wall Street Fin RAJASTHAN GLOBAL SEC LTD B 58350 63.16
7/1/2010 531249 Well Pack Papers SHOBHNABEN R PARMAR B 29288 378.58
7/1/2010 531249 Well Pack Papers PANDYA YAMINIBEN M B 24985 378.60
7/1/2010 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR B 41861 380.79
7/1/2010 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR S 35598 380.62
7/1/2010 514470 Winsome Tex PRIYANKA PATWARI B 1000000 4.43
7/1/2010 514470 Winsome Tex BHAGWATIDEVI PATWARI B 1000000 4.43
7/1/2010 514470 Winsome Tex BABITA AGRAWAL B 500000 4.43
7/1/2010 514470 Winsome Tex KAILASHPATI VINIMAY PRIVATE LIMITED S 2500000 4.43
* B - Buy, S - Sell
NSE Bulk Deals to Watch - Jan 7 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
07-JAN-2010,ATLASCYCLE,Atlas Cycles (Haryana) Lt,BLUE PEACOCK SECURITIES PVT LT,BUY,17503,240.05,-
07-JAN-2010,CRANESSOFT,Cranes Software Internati,TRANSGLOBAL SECURITIES LTD.,BUY,1351634,30.69,-
07-JAN-2010,GLORY,Glory Polyfilms Limited,ANIL KUMAR GOEL,BUY,100000,26.38,-
07-JAN-2010,GOLDTECH,Goldstone Tech Ltd.,HEMANT MADHUSUDAN SHETH,BUY,110136,36.35,-
07-JAN-2010,GOLDTECH,Goldstone Tech Ltd.,SETU SECURITIES LTD,BUY,104156,36.48,-
07-JAN-2010,GOLDTECH,Goldstone Tech Ltd.,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,173660,36.50,-
07-JAN-2010,HILTON,Hilton Metal Forging Limi,BHAVIN Y MEHTA,BUY,97692,32.07,-
07-JAN-2010,HILTON,Hilton Metal Forging Limi,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,BUY,63220,32.53,-
07-JAN-2010,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,9777409,22.97,-
07-JAN-2010,JKTYRE,JK Tyre & Industries Ltd,BLACKSTONE ASIA ADVISORS L L C A/C THE INDIA FUND INC,BUY,227460,157.45,-
07-JAN-2010,KALINDEE,Kalindee Rail Nirman (Eng,MBL & COMPANY LTD.,BUY,70168,218.86,-
07-JAN-2010,MANGTIMBER,Mangalam Timber Pro Ltd,BLUE PEACOCK SECURITIES PVT LT,BUY,153393,43.07,-
07-JAN-2010,MANGTIMBER,Mangalam Timber Pro Ltd,OM INVESTMENTS,BUY,231425,42.12,-
07-JAN-2010,MANGTIMBER,Mangalam Timber Pro Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,250445,42.64,-
07-JAN-2010,MICROTECH,Micro Technologies (India,NAVANTUC TREXIM PVT LTD,BUY,72000,208.60,-
07-JAN-2010,OMNITECH,Omnitech Infosolutions Li,WALL STREET CAPITAL MARKETS PVT LTD,BUY,75000,170.53,-
07-JAN-2010,RADAAN,Radaan Mediaworks (I) Ltd,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,277887,5.66,-
07-JAN-2010,SAKHTISUG,Sakthi Sugars Ltd.,J P M S L A/c Copthall Mauritius Investment Ltd,BUY,1335795,106.00,-
07-JAN-2010,SELMCL,SEL Manufacturing Company,NIKON FINLEASE PVT. LTD,BUY,89724,86.73,-
07-JAN-2010,SUNDRMBRAK,Sundaram Brake Lin Ltd.,MODEX INTERNATIONAL SECURITIES LTD.,BUY,23771,213.81,-
07-JAN-2010,UCALFUEL,Ucal Fuel Systems Ltd,JMP SECURITIES PVT LTD,BUY,180437,102.83,-
07-JAN-2010,UCALFUEL,Ucal Fuel Systems Ltd,OM INVESTMENTS,BUY,131288,98.30,-
07-JAN-2010,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1240958,20.15,-
07-JAN-2010,ZENSARTECH,Zensar Technologies -Depo,RPG CELLULAR INVESTMENTS & HOL.P.LTD,BUY,430000,343.67,-
07-JAN-2010,ASIANELEC,Asian Electronics Ltd,SHAH INVESTMENTS FINANCIAL DEV & CON PRIVATE LIMIT,SELL,230000,41.83,-
07-JAN-2010,ATLASCYCLE,Atlas Cycles (Haryana) Lt,BLUE PEACOCK SECURITIES PVT LT,SELL,17503,245.15,-
07-JAN-2010,BLUEBIRD,Blue Bird (India) Limited,PAM PHARMACEUTICAL& ALLIED MACHINERYCO PVTLTD,SELL,188000,29.71,-
07-JAN-2010,BRANDHOUSE,Brandhouse Retails Limite,GKK CAPITAL MARKETS PRIVATE LI,SELL,301000,29.10,-
07-JAN-2010,CRANESSOFT,Cranes Software Internati,TRANSGLOBAL SECURITIES LTD.,SELL,1351634,30.72,-
07-JAN-2010,EASUNREYRL,Easun Reyrolle Relays,CREDIT SUISSE (SINGAPORE) LIMITED A/C CREDIT SUISSE (SINGAP,SELL,198392,108.13,-
07-JAN-2010,GICHSGFIN,Gic Housing Finance Ltd,CALEDONIA INVESTMENTS PLC,SELL,1307682,92.82,-
07-JAN-2010,GLFL,Gujarat Lease Fin Ltd,GUJARAT INDUSTRIAL INVESTMENT CORPORATION LTD,SELL,206833,6.02,-
07-JAN-2010,GLORY,Glory Polyfilms Limited,ANIL KUMAR GOEL,SELL,100000,28.73,-
07-JAN-2010,GLORY,Glory Polyfilms Limited,KSHITIJ-PORTFOLIO-PVT.-LTD.,SELL,197001,27.38,-
07-JAN-2010,GOLDTECH,Goldstone Tech Ltd.,SETU SECURITIES LTD,SELL,89150,36.44,-
07-JAN-2010,GOLDTECH,Goldstone Tech Ltd.,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,155660,36.48,-
07-JAN-2010,GPIL,Godawari Power And Ispat,INDIA INFRA EQUITY FUND,SELL,150923,235.24,-
07-JAN-2010,HILTON,Hilton Metal Forging Limi,BHAVIN Y MEHTA,SELL,97692,32.55,-
07-JAN-2010,HILTON,Hilton Metal Forging Limi,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,SELL,81220,31.12,-
07-JAN-2010,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,9724389,22.95,-
07-JAN-2010,JKTYRE,JK Tyre & Industries Ltd,BLACKSTONE ASIA ADVISORS L L C A/C THE INDIA FUND INC,SELL,1,157.00,-
07-JAN-2010,KALINDEE,Kalindee Rail Nirman (Eng,MBL & COMPANY LTD.,SELL,70168,219.06,-
07-JAN-2010,KINETICMOT,Kinetic Motor Company Ltd,KINETIC ENGINEERING LTD,SELL,115000,23.52,-
07-JAN-2010,MANGTIMBER,Mangalam Timber Pro Ltd,BLUE PEACOCK SECURITIES PVT LT,SELL,120929,42.24,-
07-JAN-2010,MANGTIMBER,Mangalam Timber Pro Ltd,OM INVESTMENTS,SELL,231425,42.19,-
07-JAN-2010,MANGTIMBER,Mangalam Timber Pro Ltd,RAHUL DOSHI,SELL,100000,41.50,-
07-JAN-2010,MANGTIMBER,Mangalam Timber Pro Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,250445,42.61,-
07-JAN-2010,RADAAN,Radaan Mediaworks (I) Ltd,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,268887,5.56,-
07-JAN-2010,SAKHTISUG,Sakthi Sugars Ltd.,JPMORGAN MAURITIUS HOLDINGS LIMITED,SELL,1335795,106.00,-
07-JAN-2010,SAKHTISUG,Sakthi Sugars Ltd.,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,440720,107.06,-
07-JAN-2010,SASKEN,Sasken Commu Techno Ltd,NORTEL NETWORKS MAURITIUS LTD,SELL,365000,187.06,-
07-JAN-2010,SELMCL,SEL Manufacturing Company,NIKON FINLEASE PVT. LTD,SELL,91824,86.77,-
07-JAN-2010,SIMBHSUGAR,Simbhaoli Sugars Limited,MATTERHORN VENTURES,SELL,137421,87.85,-
07-JAN-2010,SUNDRMBRAK,Sundaram Brake Lin Ltd.,MODEX INTERNATIONAL SECURITIES LTD.,SELL,23771,211.67,-
07-JAN-2010,SUNILHITEC,SUNIL HITECH ENGR. LTD,INDIA INFRA EQUITY FUND,SELL,85000,240.25,-
07-JAN-2010,UCALFUEL,Ucal Fuel Systems Ltd,OM INVESTMENTS,SELL,131302,98.40,-
07-JAN-2010,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1222066,20.16,-
07-JAN-2010,ZENSARTECH,Zensar Technologies -Depo,PEDRIANO INVESTMENTS LTD,SELL,430000,343.67,-
Market takes a breather
Today's major news
Reliance Industries to drill six new wells in KG-D6 block in 2010; the stock rises 1.51%.
Thermax bags order worth Rs240 crore; the stock closes 0.52% lower.
Four Soft wins contract from Mondial Logistics, the stock jumps 4.97%.
Subhash Projects bags two orders worth Rs62 crore; the stock surged 3.94%.
IRB Infrastructure bags order worth Rs800 crore, the stock ends the day 1.53% higher.
Click here for more stories
Events Update
Food Inflation for the week ended December 26, 2009 softened to 18.22% against 19.83% in the previous week.
Post-market summary
Global signals
European indices traded lower in morning trades, as banking stocks fell ahead of Bank of England’s decision on interest rates. At the time of writing this report FTSE 100 was trading 0.32% lower.
All the major Asian indices except Shanghai Composite that rose marginally by 0.45% ended lower. SGX Nifty was down 32 points.
US stock futures opened marginally lower, as investors look forward to the Labor Department’s release of first-time claims numbers for jobless benefits for the week ended January 02, 2010.
Indian indices
Domestic markets declined for the first time in the year 2010 owing to weak overseas markets and selling in information technology stocks. The Sensex that opened flat, touched the day’s high of 17,733 and soon turned negative for the day’s low of 17566. At closing bell, Sensex closed at 17616, 85 points lower. Nifty closed 19 points lower at 5263.
Market sentiment
The market breadth, the number of advancing shares to declining shares, was negative. Of the total 2,969 stocks traded on the BSE, 1,638 stocks declined, whereas 1,237 stocks advanced. Ninety four stocks closed unchanged.
Sectoral & stock screening
Oil & Gas stocks did well for the day with the index (BSE Oil & Gas) up by 1.24%. The other two sectors that were up for the day were consumer durable and metal. Rest of the 10 sectors were down, with the information technology sector down by 2.22%--the most for any sector--followed by BSE Auto that fell 1.72%.
On stocks’ front, GMDC surged the most by 10.22% followed by Hindustan Copper that rose 10.00% and Aban Offshore that jumped 7.45%. Among losers, Sintex Industries slid the most by 6.10% followed by Adani Enterprises that fell 4.20%.
Viewing volumes
IFCI, the industrial finance company, saw highest trading with over 1.02 crore shares changing hands on the BSE to be followed by Essar Oil (0.86 crore shares), Ispat Industries (0.68 crore shares), wind turbine maker Suzlon Energy (0.62 crore shares) and India’s second biggest realty company, Unitech (0.54 crore shares).
Back with a bang!
A year ago, the scene on the Dalal Street was strikingly contrary. Where the start of 2009 was quite grim with all the signals on the domestic and global front staying negative, the year 2010 started on a positive note with the BSE Sensex trading at its 52-week high. Whereas in 2009 the prime concern was economic recovery and that happened mainly because of the concerted efforts of the major central banks that infused trillions of dollars in their respective economies, year 2010 will be more of sustaining the recovery that we have witnessed over the last few quarters. With favourable conditions for the markets and the economy turning around (reversing of the interest rate cycle, rising inflation, withdrawal of stimulus etc), all depends on how good are the financials posted by the India Inc. And this will decide the fate of investors in 2010.
In 2009, the BSE Sensex index rose by 80% and the NSE index, Nifty, surged by 75%—the best yearly performance since 1999. The BSE small cap index (BSE SML CAP) rose by 126% beating the 30-stocks benchmark index (BSE Sensex) by huge margins. The economic recovery helped commodity stocks shine the most, with the BSE Metal Index rising by 233%—the highest among the 13 sector indices on the BSE. Pump priming (fiscal stimulus by the government) helped automobile sales and the BSE Auto Index surged by 201%—the second highest among sector indices. The IT Index jumped by 131%, Capital Goods Index rose by 102%. The savior of 2008, the FMCG Index, was the worst performer in 2009 surging the least with 41% yearly appreciation.
Among index stocks, Tata Motors surged by 395%, followed by Jindal Steel and Power that was up by 368%, Mahindra & Mahindra that rose 287% and Sterlite Industries that advanced 229%. Information technology stocks like HCL Technologies and Tata Consultancy Services up by 222% and 210% respectively. The index losers include telecom players like Reliance Communications that was down 24% and Bharti Airtel that slumped 9%. The mid cap gainers include Aurobindo Pharma (up 444%), Mcleod Russel (up 439%), Bhushan Steel (up 363%), HOEC (up 352%), Havells (up 328%), and Shree Cement (up 316%). The non-index gainers include Oracle Financial Services Software (up 400%), Sesa Goa (up 380%), Mphasis (up 360%), Torrent Power (up 320%) and Tech Mahindra (up 300%). Such surge was possible on rise in liquidity levels post March 2009. As per Times of India report, the foreign institutional investors (FII) inflow to Indian equity markets in 2009 stood at Rs80,500 crore—the highest ever in a year and comes a year after they pulled out over Rs50,000 crore. FII inflow so far this year has broken the previous high of Rs71,486 crore parked by foreign fund houses in domestic equities in 2007.
The Sensex made a brisk turnaround from March wherein it surged by over 120% after making a low of 8047. At that point, the index traded at a nominal price/earnings (P/E) and price/book value (P/BV) of 12.68x and 2.47x respectively, while currently it is trading at 17701 with its P/E and P/BV at 22.63x and 4.25x respectively. Thus just like 2009, year 2010 may turn to be a very difficult for investors. The stock pick in 2009 was quite easy, as lower valuations across the board presented the best investment opportunities wherever one laid his hand.
Currently, the domestic indices trade higher to its mean P/E of 17x its earnings. Thus in 2010, stock investing may come with a pinch of salt.
One has to be very selective in considering the right and fundamentally good stocks that are part of the right theme and also are available at attractive valuations. The FII fund flows will also decide the direction of markets in 2010.
Market snaps four-day rally; RIL holds firm
The key indices snapped four-day winning streak on profit booking in frontline stocks. Weak global markets also dampened sentiment. Auto, IT and realty stocks led the fall. But Index heavyweight Reliance Industries held firm. Consumer durable stocks rose. The BSE 30-share Sensex fell 85.41 points or 0.48%, up close to 49.18 points from the day's low and off close to 117.62 points from the day's high.
The market was volatile. The market drifted lower in early trade as investors cashed in on some of the recent strong gains in share prices. The market recovered from lower level in morning trade. However, the intraday recovery proved short-lived. The market extended losses in early afternoon trade. A bout of volatility was witnessed in afternoon trade as the Sensex cut losses soon after hitting a fresh intraday low. The market weakened again with the Sensex hitting a fresh intraday low in mid-afternoon trade. After a strong rebound, the market lost ground once again in late trade
India VIX, a volatility index based on the S&P CNX Nifty index option prices, rose 1.72% to 22.50. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days
The market lost ground today after a recent strong showing. The BSE Sensex had jumped 357.31 points or 2.06% to a 22-month closing high of 17,701.13 on Wednesday, 6 January 2010 from a recent low of 17,343.82 on 30 December 2009.
The labour market in the United States is improving and the economy is close to the point when the unemployment rate will start to fall, a top US Federal Reserve official said on Thursday. James Bullard, president of the St. Louis Federal Reserve Bank, also said that US housing prices were stabilising, and that housing starts were also likely to steady and cease to be a drag on growth. Bullard, who votes on the US central bank's policy-setting Federal Open Market Committee (FOMC) this year, was speaking to an audience of university students in Shanghai.
Closer home, the finance ministry is reportedly in talks with other ministries for selling stakes in around 60 state-run firms in coming years, including miner Hindustan Copper. In November 2009, the Indian cabinet approved a proposal to sell at least 10% government holding in state-run firms and use the proceeds for social schemes until March 2012, to cut its fiscal deficit.
The food price index rose 18.22% in the year to 26 December 2009. While fuel price index was up 4.85 %, the primary articles price index jumped 14.39 % in the year to 26 December 2009, data released by the government today showed.
Commerce and industry minister Anand Sharma has reportedly urged against an immediate rollback of last year's stimulus measures, wading into a debate on the timing of the stimulus exit that has pitted ministries, policymakers and industry on different sides. The finance ministry, trying to manage the highest fiscal deficit in 16 years and galloping food price inflation, is keen to do away with the stimulus measures on the grounds that these have helped shepherd India's economy safely out of the worst global economic crisis since the Great Depression.
Finance secretary Ashok Chawla, on Wednesday said continuing stimulus measures wasn't good for the economy, arguing that 'too much of stimulus can be injurious to health' and clearly hinting that a rollback of the stimulus measures may be on the cards. However, Mr Sharma urged caution. Mr Sharma said while exports were on the recovery path, a 'full and sustained' recovery would happen only when demand picks up across the US, Europe and Japan.
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.
The government has reportedly decided to come to the aid of select export sectors that are yet to recover from the global meltdown by offering new incentives and expanding the scope of existing packages. Exports broke a 13-month fall in November 2009, growing 18% to touch $ 13.2 billion, but a commerce department study found that sectors such as engineering, handicraft, textile , pharmaceuticals and leather are still under the weather.
Meanwhile, 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
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.
In a move which could infuse more liquidity in the markets and make it more dynamic, the Securities and Exchange Board of India (Sebi) on Wednesday extended the tenure of contracts in securities lending and borrowing (SLB) to 12 months from one month. At the beginning, the tenure was of only seven days, which was later increased to 30 days.
European shares fell back from a closing 15-month high on Thursday, with banks taking most points off the index, and ahead of the Bank of England's decision on interest rates. The key benchmark indices in France, Germany and UK fell by between 0.03% to 1.06%.
The Bank of England is likely to keep interest rates on hold at a record low of 0.5 %, and maintain the quantitative easing programme at 200 billion pounds of asset purchases.
Most Asian stocks declined Thursday, with Chinese shares dropping sharply as a central bank move to tighten liquidity in the money markets raised fears interest rate increases could come sooner than expected. China's Shanghai Composite lost 1.9% to finish at 3192.78, extending losses after the People's Bank of China sold 60 billion yuan ($8.78 billion) worth of three-month bills at 1.3684%, increasing the yield on such bills for the first time since August 2009, from 1.3280%. The Shenzhen Composite index also dropped 1.9%, to 1,179.99.
On Wednesday, China's central bank said that it would pay particularly close attention to the property market in 2010 while managing inflationary expectations
In other Asian markets, the key benchmark in South Korea, Japan, Singapore, Hong Kong, Taiwan and Indonesia fell by between 0.59% to 1.28%.
Trading in US index futures indicated Dow could fall 34 points at the opening bell on Thursday, 7 January 2010.
US markets closed flat on Wednesday, 6 January 2010 ahead of the crucial jobs report on Friday, 8 January 2010. The Dow Jones Industrial Average was up 1.66 points, or less than 0.1%, to 10,573.68. The broader S&P 500 Index was up 0.62, or 0.1%, to 1,137.14. The Nasdaq Composite Index was down 7.62 points, or 0.3%, to 2,301.09.
The Federal Reserve released minutes from its last meeting yesterday which indicated that some members think more stimulus measures for the economy may be desirable. They modestly raised their projection for GDP growth for growth forecast upward for 2010 and 2011 and said they see lower core inflation in the next few years.
In key economic data, ADP Employment Services data showed the private sector lost 84,000 jobs in December. That was fewer than the 145,000 jobs lost in November, but did exceed the 73,000 expected by economists. And the December ISM service index improved to 50.1 from 48.7 that was registered in November.
The July fed-funds futures contract, at Wednesday's settlement, priced in a 36% chance for the Federal Open Market Committee (FOMC) to lift the Fed funds rate to 0.5% at the late June 2010 policy meeting. That's down from a 46% chance at Tuesday's settlement, a 58% chance at Monday's settlement, and a 78% chance after the New Year's Eve-shortened session last Thursday.
The Fed cut interest rates to near zero in December 2008 and created a host of emergency lending facilities to fight the worst recession in more than 70 years. It has pledged low rates for an extended period. Fed watchers have focused on clues to the timing of a possible tightening of monetary policy as the economy recovers. The FOMC maintained the "extended period" stance in its last statement on 15 December 2009.
Closer home, the BSE 30-share Sensex fell 85.41 points or 0.48% to settle 17,615.72. The Sensex fell 134.49 points at the day's low of 17,566.64 in mid-afternoon trade. It gained 32.21 points at the day's high of 17,733.34 in early trade.
The S&P CNX Nifty declined 18.70 points or 0.35% at 5263.10.
BSE clocked a turnover of Rs 6159 crore, lower than Rs 6784.89 crore on Wednesday, 6 January 2010.
The market breadth, indicating the overall health of the market was strong. On BSE, 1638 shares advanced as compared with 1237 that declined. A total of 94 shares remained unchanged.
The BSE Mid-Cap index fell 0.02%. The BSE Small-Cap index rose 0.67%. Both the indices outperformed the Sensex.
Among sectoral indices on the BSE, the BSE Oil & Gas index (up 1.24%), the BSE Consumer Durables index (up 1.11%), the BSE Metal index (up 0.07%), the BSE Power (up 0.17%), the Capital Goods index (up 0.20%), the BSE Bankex (up 0.42%), and the BSE PSU index (up 0.43%), outperformed the Sensex.
The BSE FMCG index (down 0.49%), the BSE Realty index (down 0.63%), the BSE Healthcare (down 0.95%), the BSE Auto index (down 1.72%), and the BSE IT index (up 2.22%), underperformed the Sensex.
Among the 30-member Sensex pack, 18 fell while rest held firm.
Index heavyweight Reliance Industries (RIL) rose 1.51% on talks of more fund raising by the company through sale of treasury shares. RIL, which raised Rs 2,675 crore through the sale of treasury shares on Monday, 4 January 2010, is reportedly looking to generate a similar amount over the next few weeks by selling more stock to institutional investors.
The stake is likely to be offered at a discount of 2% to 4% as part of a strategy to beef up its cash reserve. The funds would be used for its immediate requirement in exploration and production (E&P), debt repayments and acquisition of bankrupt chemical giant LyondellBasell.
RIL, early this week, 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.
Software pivotals fell for the second day in a row on a firm rupee. India's second largest software services exporter Infosys fell 2.30% as its ADR fell 1.53% on Wednesday. India's third largest software services exporter Wipro fell 2.25% as its ADR fell 1.2% on Wednesday. India's largest software services exporter TCS fell 2.61%.
A firm rupee adversely affects operating profit margin of IT firms as the sector derives a lion's share of revenue from exports.
The rupee extended its rally on Thursday afternoon soaring to new 15-month highs backed by large dollar sales by foreign banks, but buying of the US unit by importers and a weak sharemarket prevented a sharper rise. The partially convertible rupee was trading at 45.70/71 per dollar after hitting 45.55 earlier, its strongest since 23 September 2008 and above its previous close of 45.85/86.
Auto stocks fell on profit taking. India's largest motorcycle maker by sales Hero Honda Motors fell 2.51%. Hero Honda will comfortably exceed its fiscal 2009/10 sales target of 40 lakh units, its managing director Pawan Munjal said to media on Thursday. Sales jumped 74% to 375,838 units in December 2009 over December 2008.
Bajaj Auto fell 1.72%. 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 0.81% falling for the third straight day. Sales rose 34% to 119,701 units in December 2009 over December 2008.
India's top truck maker by sales Tata Motors fell 3.37%. 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) fell 2.14%. 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 car maker by sales Maruti Suzuki India fell 0.60%. The company said on Thursday it had priced newly launched five-seater multipurpose car Eeco at 259,000 rupees ($5,640), as competition for low-cost vehicles heats up.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.
Rate sensitive realty stocks also fell on profit taking. India's largest realty player by market capitalization DLF fell 1.12%. 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, Ackruti City, Unitech, Indiabulls Real Estate fell by between 0.77% to 1.41%.
Consumer durables stocks gained on hopes of good earnings on the back of higher sales in Christmas. Lloyd Electric, Blue Star, Titan Industries and Rajesh Exports rose by between 0.70% to 11.04%.
Non banking finance companies gained after Securities and Exchange Board of India said regulated finance companies no longer need to show 100% asset cover while selling unsecured debt instruments. SREI Infrastructure Finance, Shriram Transport Finance, Sundram Finance, Shriram City Union Finance rose by between 0.25% to 8.45%.
DB Corp lost 3.69% on profit booking after a decent debut on Wednesday, 6 January 2010.
Steel Strips Wheels was locked at 5% upper limit at Rs 117.40, extending gains for the seventh consecutive day, after the company secured an overseas contract for supplying spare wheels.
Cals Refineries reported a highest volume of 3.34 crore shares on the BSE. Kaashyap Technologies (2.62 crore shares), Alok Industries (1.07 crore shares), IFCI (1.02 crore shares), and Satyam Computer Services (93.17 lakh shares), were the other volume toppers on the BSE.
Aban Offshore clocked the highest turnover of Rs 167.97 crore on the BSE. Reliance Industries (Rs 164.35 crore), Essar Oil (Rs 136.02 crore), Tata Steel (Rs 120.43 crore), and Bombay Dyeing & Manufacturing Company (Rs 109.74 crore), were the other turnover toppers on the BSE.
Stocks at Wall Street end almost flat
Stocks do not react much on a day full of catalysts
US stocks lacked direction for the entire day on Wednesday, 06 January 2010 and ended almost flat. Stocks pared almost all their mid day gains, mainly led by the technology sector. The materials and energy sectors tried to support the market though. Economic reports checked in mixed in nature though did not move market either way. The latest Federal Open Market Committee meeting minutes were released today.
At the end of the day on 06 January, 2010, the Dow Jones Industrial Average ended higher by 1.66 points at 10,573.68. Nasdaq Composite ended lower by 7.62 points at 2301.09. S&P 500 ended higher by 0.62 points at 1137.14. Dow was trading higher by 17 points earlier during the day.
Six of the ten economic sectors ended higher for the day led by materials, energy, and financial sectors. Telecom and technology sectors lagged. Consumer discretionary sector remained almost unchanged.
Blue chips fought the entire day to keep the Dow in positive territory. The broad-based S&P 500 also battled to remain in the green.
Google, Oracle and Microsoft were the main laggards in the technology sector.
According to the latest Federal Open Market Committee meeting minutes, members said that more stimulus might become desirable, but that asset purchases could be scaled back. Officials also expressed a continued concern about a weak labor market.
Among major economic data expected for the day at Wall Street, The ADP employment report in US showed on Wednesday, 06 January, 2010 that private-sector firms in the U.S. eliminated 84,000 jobs in December, the 23rd decline in a row. It was the fewest jobs lost since March 2008. But the figure was more than an estimated 75,000. In November, a revised 145,000 jobs were lost, compared with the 169,000 originally reported.
Separately, The Institute for Supply Management reported in US on Wednesday, 06 January 2010 that the service sectors of the U.S. economy rebounded in December 2009. The ISM non-manufacturing index rose to 50.1% from 48.7% in November. Market was expecting the ISM non-manufacturing index to rise to 51%.
Readings above 50% in the diffusion index indicate that activity at more firms is expanding rather than contracting. The report showed that seven industries reported growth, while nine reported contraction.
Crude prices ended higher at Nymex on Wednesday, 06 January 2010. Prices rose following the cold weather and lower dollar. Price climbed up despite the energy department reporting a build up in crude inventories for last week.
On Wednesday, crude-oil futures for light sweet crude for February delivery closed at $83.18/barrel (higher by $1.41 or 1.7%). During intra day trading it fell to $80.85/barrel. Prices have now risen for ten consecutive sessions and have gained 14.7% in that stretch.
The EIA reported today that U.S. crude inventories rose by 1.3 million barrels in the week ended 1 January, 2010. The report also showed that gasoline inventories increased by 3.7 million barrels. Distillate stockpiles fell 300,000 barrels. The EIA data also showed that net crude imports rose 4.1% to 8.323 million barrels a day. Refiners reduced their production last week, operating at 79.9% of their operable capacity, down from the previous week's 80.3%.
Market was anticipating that 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.
In the currency market on Wednesday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.2% following mixed economic data.
Indian ADRs ended mixed today. Dr Reddys and Rediff.com were the main gainers soaring 3.4% and 2.9% respectively. ICICI Bank and Infosys Technologies, each lost 1.5%.
For tomorrow, there are a few economic and earning reports expected. The initial and continuing claim reports are the economic ones expected.
Sensex may open flat
Headlines for the day
United Spirits mulls bond issue to refinance Rs3,000-crore debt
ONGC exits Trinidad and Tobago block
Pfizer to source 40 off-patent cancer care drugs from Strides
BHEL bags order for solar plant in state
Nalco eyes Rs25,000 crore by 2020
Events for the day
Major corporate action:
Ex-date for Amalgamation of Titagarh Steel Ltd
Weekly Inflation Numbers
Pre-market report
Global signals
On Wednesday European Markets closed flat. FTSE 100 closed 0.14% higher at 5530.
The US markets closes flat on Wednesday after Federal Reserve Official said that they were steel worried about labor market weakness. Nasdaq 100 declined 8 points and closed the day at 2301.
Among the Asian indices, all the Asian indices are trading weak except the Shanghai Composite & Nikkei that rises marginally. At the time of writing of this report, SGX Nifty is trading 1 points higher.
Indian markets
The domestic indices are expected to open flat, remain range-bound volatile, owing to weak global markets.
Among the local indices, the Nifty could test the 5300-5325 range on the up side, while on the down side it could find support at 5250 and 5200. While the Sensex is likely to get support at 17600 and may face resistance at 17850.
Indian ADR's
Among the Indian ADRs trading on the US bourses, Satyam leads the chart of gainers with gain of 3.98%. On other hand ICICI Bank was the worst performer with loss of 1.58%.
Commodity cues
In the commodity space, wherein the Crude oil prices recorded gain, with the Nymex light crude oil for February series rose by $1.05 to settle at $82.82 a barrel.
In the metals space, Comex Gold for February series rise by $18.30 to settle at $1137.00 to a troy ounce.
In the metals space, Comex Silver for March series rise by $0.38 to settle at $18.18 to a troy ounce.
Daily trend of FII/MF investment in equities
On January 06, 2010, FIIs were the net buyers of the Indian Stocks in the tune of Rs1061.90 crore (with the gross purchase of Rs3338.30 crore and gross sales of Rs2276.30 crore).
While the Domestic mutual funds, on January 05, 2010, were the net buyers of the stocks in the tune of Rs43.40 crore (with gross purchase of Rs1030.70 crore and gross sales of Rs987.30 crore).
Grey Market Premium - Infinite Computer Solutions
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Infinite Computer | 155 to 165 | 12 to 15 |
| MBL Infra | 180 | 10 to 12 |
Aptech
We recommend buying the stock of Aptech from a short-term perspective. It is evident from the charts of the stock that it encountered key resistance at around Rs 296 in September 2009 and began to decline. The stock's downtrend got accelerated in late October. However, it found support at around Rs 165 in late October, having completed a50 per cent fibonacci retracement of its prior up move. This support was retested during end-November and saw the stock consolidating in the range between Rs 165 and Rs 195 till early January. Recently, the stock moved up to surpass its 21 as well as 50-day moving average and also exceeded the resistance at Rs 195. We notice that there has been an increase in volumes over the past three trading sessions. The daily relative strength index has entered in to the bullish zone from the neutral region and weekly RSI is inching towards this zone in the neutral region. The daily moving average convergence and divergence indicator is on the brink of entering the positive territory that reinforces the bullish momentum. Our short-term outlook on the stock is bullish. We expect it to rally until it hits our price target of Rs 225. Traders with short-term perspective can consider buying the stock with Rs 193 as stop-loss.
via BL
Reliance Industries may hog limelight
Reliance Industries (RIL), which raised Rs 2,675 crore through the sale of treasury shares on Monday, 4 January 2010, is reportedly looking to generate a similar amount over the next few weeks by selling more stock to institutional investors. The stake is likely to be offered at a discount of 2-4% as part of a strategy to beef up its cash reserve.
The fund would be used for its immediate requirement in exploration and production (E&P), debt repayments and acquisition of bankrupt chemical giant LyondellBasell.
Meanwhile RIL which has proposed to invest $1.5 billion more in developing satellite gas finds in the prolific KG—D6 block, will drill six wells this year. RIL has till date made 19 discoveries-18 gas and one oil-in deep-sea block KG-DWN-98/3 or KG-D6. Of these, it developed Dhirubhai-1 and 3 gas fields in the first phase at an investment of $8.836 billion. It has now proposed to invest another $1.5 billion in bringing to production four satellite finds in the block.
Telecom stocks may come in spotlight on reports the nine-member empowered group of ministers (EGoM) headed by finance minister Pranab Mukherjee will meet in Delhi today, 9 January 2009, to take a final call on the payment timeline for the third generation (3G) spectrum auctions, as there is no consensus between finance and telecom ministries on this issue.
Shares of commercial vehicle manufacturers will see action on reports they have either increased or are in the process of hiking prices of trucks on the back of runaway commodity prices.
Prices of key input items like steel, copper, aluminum; rubber and crude are heading north.
Meanwhile, addressing a press conference at the Auto Expo in New Delhi on Wednesday, Mr Ravi Pisharody, President – Commercial Vehicles Business Unit, Tata Motors said he expects the recent buoyancy in demand in the segment to continue for some more time. It anticipates double-digit growth in sales in 2010-11.
ICICI Merchant Services, the newly-formed joint venture (JV) between ICICI Bank and First Data Corporation (FDC), plans to expand its Point-of-sale (PoS) terminal network to 500,000 over the next five years, reports suggested. At present, the bank has a merchant acquiring network of 150,000 terminals. FDC will own 81% stake in the JV with ICICI Bank holding the remaining stake.
As per reports the Bharti Airtel-Warid deal is underway and is nearing completion. The green signal for the deal is likely when Bangladesh Prime Minister Sheikh Hasina visits India next week. The Bangladesh telecom regulator has already approved Bharti's proposal. Bharti Airtel is likely to invest $300 million for a 70% stake in Warid.
Strides Arcolab has entered an agreement with Pfizer Inc. to supply the U.S. company with non-patent injectable and oral drugs. The generic drugs will be produced by two joint ventures between Strides Arcolab and South Africa's Aspen Pharmacare Holdings. The two ventures are called Onco Laboratories and Onco Therapies. The agreement, financial terms of which were not disclosed, is for 40 off-patent products, many of which are for treating cancer.
ABG Shipyard through a unit has acquired 57 lakh shares, or 15.2%, of Great Offshore through an open offer. The open offer for acquiring a 20% stake in Great Offshore was made at Rs 590 a share.
Daily News Roundup - Jan 7 2010
RIL is looking to raise more funds by selling more stock to institutional investor in the next two weeks. (BS)
RIL will drill 6 new wells in KG-D6 block during the current year. (BS)
L&T has bagged Rs23.25bn worth of order during Q3 FY10 for construction of residential towers, hospital, exhibition centre, IT Park and factory building. (BS)
ICICI Bank has cut car loan rates to 9.75-10.5%. (ET)
ONGC has been forced to exit from a gas block in Trinidad and Tobago after its partner Lakshmi Mittal walked out of the project. (BS)
Government can nod to offload 10% in BSNL. (BS)
Reliance Infrastructure, L&T, IVRCL and KMC Constructions have been identified as `preferred bidders' for Rs82bn highway projects, which are to be awarded on negative grant from the private players soon. (FE)
BHEL has bagged Rs420mn contract from Karnataka Power Corporation Ltd. (BS)
Ashok Leyland has unveiled countries first electric plug-in CNG hybrid bus, HYBUS at the auto expo. (BS)
IVRCL Infra has secured orders worth Rs9.6bn. (BL)
ABG Shipyard, through unit, has acquired 5.7mn shares or 15.2% of Great Offshore via open offer. (BS)
Ansal API, is all set to launch a major affordable housing project in Agra. (FE)
Ranbaxy Lab has started discussions to buy a privately-held Bangalore-based vaccine company, deal size could be around Rs500mn. (ET)
Pfizer is planning to source 40 off patient cancer drugs from Strides Arcolab. (BS)
Wockhardt has received a tentative approval from USFDA for sale of its generic memantine HCL, which is used to treat Alzheimer's and dementia. (FE)
United Spirits mulls bond issue to refinance Rs30bn debt. (BS)
PSL has bagged an order worth Rs4.25bn for water supply projects. (BL)
Pradeep Jain, chairman of Parsvnath Developers has pledged 83.66% of the stake he owns in the company with lenders. (BS)
Ruchi Soya Industries has acquired over 50% stake in Andhra Pradesh-based Gemini Edible and Fat for Rs450mn in order to consolidate its presence in the southern markets. (ET)
UCO Bank has recorded 22.1% growth in advances and 19.8% growth in deposits for Q3 FY10. (BS)
SEBI has extended the tenure of contracts in securities lending and borrowing to 12 months from current 1 month. (BS)
Government to announce stimulus package for select exporters soon. (BS)
Finance secretary hinted that the government may be looking at an exit from the stimulus. (ET)
Government to scan Register of Companies data for writing corporate policy. (ET)
Maharashtra Government is planning to invest Rs80bn to set-up 2000Kms of gas infrastructure and transportation grid. (BS)
Petroleum Ministry is seeking Rs310bn either in cash or bonds to compensate oil marketing companies in the current fiscal for there losses on cooking fuels. (BL)
EGoM headed by finance minister Pranab Mukherjee will meet to take a final call on the payment timeline for the 3G spectrum auctions. (ET)
Fertilizers ministry has urged the finance ministry to urgently resolve the liquidity problems faced by the country’s fertilizer industry following no payment of subsidy dues by the government since October 2009. (ET)
State-owned oil companies will present a health report to Prime Minister Manmohan Singh. (ET)
Government plans to slap new entry route restrictions on FDI beyond 49% in eight specified "sensitive" sectors, including airports, seaports, pharma, petroleum refining and gas pipelines. (FE)
Tired Thursday on the Street!
It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong.
Looks like the market can't make up its mind on where to go. After a strong start, the market appears to have slipped back into consolidation zone yet again. Most players are awaiting India Inc. to kick off the earnings season. The bright news on this front has been mostly discounted. What company head honchos say (and do) about the medium term outlook will be crucial.
A lot of hopes are pinned on the Budget (which may be on a Saturday) and corporates and investors will hope it is not just another annual ritual this time. Any government announcement on its ‘exit’ from the fiscal stimulus would be a key element. By the end of this month, we are most likely to hear from the RBI on its plan to reverse the easy monetary policy.
Today we expect a flat opening and another choppy day. With lack of triggers - positive or negative - some shuffling of portfolios could take place. A softening before the results could give more confidence for investors to re-enter.
FIIs were net buyers in the cash segment on Wednesday at Rs6.6bn on a provisional basis. The local funds were net sellers of Rs2.86bn, according to figures published on the NSE's web site. As per the SEBI figures, FIIs were net buyers of Rs10.62bn in the cash segment on Tuesday.
Globally too all seems to be quiet at the moment. Markets continue to drift after the year-opening rally amid lack of fresh impetus. However, commodity prices, including crude oil, have firmed up. US monthly jobs data on Friday could have a temporary bearing on sentiment. Some concerns still remain on sovereign debt default.
A slow recovery is still the most likely scenario for the global economy. So, policymakers cannot afford to withdraw the stimulus measures in a haste. People are still cautious as nobody has a clue on how the economic recovery will unfold and what impact it will have on the markets. Plenty of money is still on standby, and this will find its way into equities if the incremental news turns out to be better than expected.
On Wall Street, the Nasdaq slipped a bit and the broader market was largely volatile on Wednesday as investors considered weakness in technology and telecom along with signs of stabilization in the job market and services sector of the economy.
The Dow Jones Industrial Average ended just above unchanged, at 10,573.68. The S&P 500 index was little changed as well, at 1,137.14. The Nasdaq Composite lost 7 points, or 0.3%, at 2,301.09.
After starting off the new year with a big rally, investors were cautious, with stocks churning in a tight range on Tuesday and on Wednesday. A stronger dollar and some nervousness ahead of Friday's big monthly jobs report kept investors at bay.
Market participants are also likely holding back in the wake of a big 2009, in which the S&P 500 gained 23%, the Dow industrials added 19% and the Nasdaq added 44%.
Two private firms released reports on the December labor market, ahead of Friday's big non-farm payrolls report from the government.
Payroll services firm ADP said employers in the private sector cut 84,000 jobs from their payrolls last month, the smallest monthly decline since March 2008. However, economists were expecting 75,000 cuts, on average. Employers cut 145,000 jobs in November.
Outplacement firm Challenger, Gray & Christmas reported that 45,094 job cuts were announced in December, down from November's 50,349 figure. December 2009's number was the lowest since December 2007.
On Friday, the government is expected to report no change in non-farm payrolls last month, after employers cut 11,000 in the previous month. The unemployment rate, generated by a separate survey, is expected to show that the unemployment rate rose to 10.1% from 10% in November.
The Institute for Supply Management's services sector index rose to 50.1 from 48.7 in the previous month. Economists thought it would rise to 50.5, on average. A reading over 50 indicates expansion in the sector.
The Federal Reserve released the minutes from its December policy meeting. At that meeting, the bankers opted to continue to hold interest rates at historic lows near zero. The minutes showed the bankers thought that the economy was continuing to strengthen and that downside risks were waning.
Ford Motor rallied 3.7% in active New York Stock Exchange trading one day after it reported strong December sales at the end of one of the worst years in memory for the automakers.
On Tuesday, Ford said that US sales jumped 34% in December versus a year ago and rose 50% from November. For the year, sales fell 15%. Ford's December sales were better than expected. Toyota and Honda also reported better-than-expected results.
Dow component 3M gained 1.4% after Goldman Sachs upgraded it to its "Conviction Buy" list from a "Buy" rating.
The dollar fell versus the euro gained against the yen.
COMEX gold for February delivery gained $17.80 to settle at $1,136.50 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 $1.41 to settle at $83.18 a barrel on the New York Mercantile Exchange, the highest close since October 2008.
Treasury prices fell, raising the yield on the 10-year note to 3.80% from 3.75% late on Tuesday.
Stocks in Europe fluctuated between gains and losses as the market continued to meander after the year-opening rally. The pan-European Dow Jones Stoxx 600 index, moving in a narrow trading range through the day, finished up 0.1% to 257.83.
The UK's FTSE 100 index slipped 0.1% to 5,530.04, while the German DAX index was roughly flat at 6,034.33 and the French CAC 40 index inched 0.1% higher to 4,017.67.
Bulls which seemed to be happy for the past couple of days witnessed a round of profit-booking on Wednesday. The Nifty did manage to pierce the 5,300 milestone today in the early trades but was unable to hold on to the gains as selling in IT, telecom and select metal stocks dragged the benchmark indices to end on a flat note.
Apart from Pharma, Realty and Oil & Gas stocks, even the tea and sugar stocks were in demand; the broader indices also ended with smart gains.
Cues from the international equity markets were not that encouraging, US stocks ended with modest losses whereas Asian markets ended on a flat note.
The BSE Sensex edged higher by 15 points to end at 17,701 after touching a high of 17,790 and a low of 17,636. The Nifty ended flat at 5,282.
Equity markets in Asia were positive. The Nikkei in Japan was up 0.5%, while Australia's S&P/ASX ended flat. However, the Shanghai SE Composite was down 0.8% and Hang Seng index in Hong Kong was up 0.7%.
In Europe, stocks were trading slightly lower. The DAX in Germany was down 0.2% and the CAC 40 index in France was down 0.3%. The FTSE in the UK was down 0.4%.
Coming back to India, among the BSE sectoral indices, the Pharma index was the top gainer, adding 2.2%, followed by the Realty index that was up 1.2% and the BSE Oil & Gas index was up 1%. Even the BSE Mid-Cap index gained 0.7% while the BSE Small-Cap index was up 0.4%.
Among the 30-components of Sensex, 16 stocks ended in the positive terrain and 14 ended in the red. Grasim, Tata Power, M&M, DLF and Reliance Industries were among the top gainers.
On the other hand, among the major losers were Maruti, Reliance Infra, Hindalco, TCS and Tata Steel.
Outside the frontline indices, the big gainers in the broader market were Adani Enterprise, Fin Tech, Pantaloon Retail, REI Agro and Tulip Telecom. On the other hand, losers included Apollo Hosp, Godrej Cons, HCL Tech and Jai Corp.
DB Corp, the media house had a fantastic debut on the Indian bourses, the stock commenced trading at Rs250 per share on BSE as against its issue price of Rs212 per share. And after having a steady day of trade, the stock finally settled at Rs266 translating in to a premium of 25%.
The stock hit an intra-day high of Rs274.60 and a low of Rs235.50. Total volumes on the counter was 10.9mn shares on the BSE.
The company had a big hit with its IPO last month with the issue getting subscribed by nearly 40 times last month. DB Corp, which publishes Dainik Bhaskar, entered the capital markets with its IPO of 1.81 crore equity shares on December 11, 2009 at a price band of Rs.185-Rs 212.
Despite choppy market conditions, the IPO received a record response from investors with even the retail segment getting subscribed by 3.4 times. The HNI portion got subscribed 25.86 times and QIB 68.47 times. Enam Securities Private Limited, Citigroup Global Markets India Private Limited and Kotak Mahindra Capital Company Limited are the Book Running Lead Managers to the issue.
Shares of Gitanjali Gems surged by over 3.5% to end at Rs127 after ~2.4mn equity shares of the company were transacted at an average price of Rs124.95 on BSE. The scrip opened at Rs123.20 it touched an intra-day high of Rs129.80 and a low of Rs123.20 and recorded volumes of over 3.2mn shares on BSE.
Shares of Maruti Suzuki slipped by 3.5% to end at Rs1462 after the Reserve Bank of India on Tuesday announced that foreign investors need to get an approval before acquiring any more shares as holdings approached their limit. The scrip opened at Rs1520 it touched an intra-day high of Rs1520 and a low of Rs1460 and recorded volumes of over 0.36mn shares on BSE.
Hindustan Zinc announced that it plans to raise its metal output capacity to 1mn ton by Mid-2010 and it was looking for consultants for silver recovery. Shares of Hindustan Zinc ended lower by 1% at Rs1229. The scrip opened at Rs1245 it touched an intra-day high of Rs1257 and a low of Rs1222 and recorded volumes of over 28,000 shares on BSE.
Steel Strips Wheels announced that BMW nominated the company for the supply of spare wheel for its prestigious MINI model. Currently BMW is making MINI model at a single location in Oxford UK Only and it is being exported worldwide.
The said Wheel is under development and supply is likely to start in the middle of 2010 after BMW approvals. The annual Quantity of the wheels to be supplied is 48,000 per annum and the Company will supply the same from its Chennai plant.
The stock was locked at 5% upper circuit at Rs111.8, it opened at Rs104 it touched an intra-day high of Rs111 and a low of Rs104.6 and recorded volumes of over 2.3mn shares on BSE.
Shares of Pidilite Industries shot up by over 12.5% to end a Rs220 after the company announced that it is planning to consider bonus issue on January 28, 2010. The scrip opened at Rs193 it touched an intra-day high of Rs229 and a low of Rs191 and volumes of over RS191 shares on NSE.
Crude glides up
Crude inventories rise for last week in contrast to expectations for drop
Crude prices ended higher at Nymex on Wednesday, 06 January 2010. Prices rose following the cold weather and lower dollar. Price climbed up despite the energy department reporting a build up in crude inventories for last week.
On Wednesday, crude-oil futures for light sweet crude for February delivery closed at $83.18/barrel (higher by $1.41 or 1.7%). During intra day trading it fell to $80.85/barrel. Prices have now risen for ten consecutive sessions and have gained 14.7% in that stretch.
Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 43% since then.
A year before, crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
The EIA reported today that U.S. crude inventories rose by 1.3 million barrels in the week ended 1 January, 2010. The report also showed that gasoline inventories increased by 3.7 million barrels. Distillate stockpiles fell 300,000 barrels.
The EIA data also showed that net crude imports rose 4.1% to 8.323 million barrels a day. Refiners reduced their production last week, operating at 79.9% of their operable capacity, down from the previous week's 80.3%.
Market was anticipating that 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.
In the currency market on Wednesday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.2% following mixed economic data.
The Institute for Supply Management reported in US on Wednesday, 06 January 2010 that the service sectors of the U.S. economy rebounded in December 2009. The ISM non-manufacturing index rose to 50.1% from 48.7% in November. Market was expecting the ISM non-manufacturing index to rise to 51%.
Among other energy products on Wednesday, February gasoline gained 1.16 cents, or 0.5%, to $2.1366 a gallon, and February heating oil added 0.4% to $2.2032 a gallon.
Also on Wednesday, February natural gas contract surged 37.2 cents, or 6.6%, to $6.009 per million British thermal units on speculations that cold weather will continue push up demand. It's now trading near a one-year high.
At the MCX, crude oil for January delivery closed higher by Rs 14 (0.4%) at Rs 3,783/barrel. Natural gas for January delivery closed higher by Rs 11.1 (4.2%) at Rs 274.7/mmbtu.
Bullion metals shine
Gold and silver rise for fourth straight day
Bullion metal prices shone on Wednesday, 06 January 2010. This was the fourth consecutive rise for precious metals. Chances of economic recovery depressed the dollar today.
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 Wednesday, gold for February delivery ended at $1,136.5 an ounce, higher by $17.8 (1.6%) an ounce on the New York Mercantile Exchange. During intra day trading, it rose to a high of $1,138.4.
Gold ended FY 2009 higher by 24%. In 2008, gold prices ended higher by 5.5%.
Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Gold shed more than 7% in December.
On Wednesday, March Comex silver futures ended higher by 37.5 cents (2.4%) at $18.175 an ounce.
Silver futures had ended 2009 up 50%. Silver futures had hit a low at $10.42 on 15 January, 2009 and hit a high at $19.30 per ounce on 2 December, 2009. Like gold, silver also ended lower than its all time high level.
In the currency market on Wednesday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.2% following mixed economic data.
The Institute for Supply Management reported in US on Wednesday, 06 January 2010 that the service sectors of the U.S. economy rebounded in December 2009. The ISM non-manufacturing index rose to 50.1% from 48.7% in November. Market was expecting the ISM non-manufacturing index to rise to 51%.
Readings above 50% in the diffusion index indicate that activity at more firms is expanding rather than contracting. The report showed that seven industries reported growth, while nine reported contraction.
At the MCX, gold prices for February delivery closed higher by Rs 32 (0.2%) at Rs 16,865 per ten grams. Prices rose to a high of Rs 16,906 per 10 grams and fell to a low of Rs 16,755 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed Rs 175 (0.63%) higher at Rs 27,813/Kg. Prices opened at Rs 27,678/kg and rose to a high of Rs 27,900/Kg during the day's trading.
Market may open higher on positive Asian stocks; food inflation data eyed
The market may open higher on gains in most of Asian stocks. However, volatility may remain high as investors may look to cash in some profit after recent solid gains in indices. The government will today unveil data on some wholesale price indices for the year through 26 December 2009 viz. the food price index, the primary articles index and the fuel price index.
Commerce and industry minister Anand Sharma has reportedly urged against an immediate rollback of last year's stimulus measures, wading into a debate on the timing of the stimulus exit that has pitted ministries, policymakers and industry on different sides The finance ministry, trying to manage the highest fiscal deficit in 16 years and galloping food price inflation, is keen to do away with the stimulus measures on the grounds that these have helped shepherd India's economy safely out of the worst global economic crisis since the Great Depression.
Finance secretary Ashok Chawla, on Wednesday said continuing stimulus measures wasn't good for the economy, arguing that “too much of stimulus can be injurious to health” and clearly hinting that a rollback of the stimulus measures may be on the cards. However, Mr Sharma urged caution. Mr Sharma said while exports were on the recovery path, a ‘full and sustained' recovery would happen only when demand picks up across the US, Europe and Japan.
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.
The government has reportedly decided to come to the aid of select export sectors that are yet to recover from the global meltdown by offering new incentives and expanding the scope of existing packages. Exports broke a 13-month fall in November 2009, growing 18% to touch $ 13.2 billion, but a commerce department study found that sectors such as engineering, handicraft, textile , pharmaceuticals and leather are still under the weather.
Meanwhile, 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
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.
In a move which could infuse more liquidity in the markets and make it more dynamic, the Securities and Exchange Board of India (Sebi) on Wednesday extended the tenure of contracts in securities lending and borrowing (SLB) to 12 months from one month. At the beginning, the tenure was of only seven days, which was later increased to 30 days.
Most Asian stocks rose on Thursday as the improved outlook for the global economy drove up commodity prices. The key benchmark indices in Hong Kong, Japan, South Korea and Indonesia rose by between 0.07% to 0.16%. But the key benchmark indices in China, Singapore and Taiwan fell by between 0.19% to 0.54%.
US markets closed flat on Thursday ahead of the crucial jobs report on Friday. The Dow Jones Industrial Average was up 1.66 points, or less than 0.1%, to 10,573.68. The broader S&P 500 Index was up 0.62, or 0.1%, to 1,137.14. The Nasdaq Composite Index was down 7.62 points, or 0.3%, to 2,301.09.
The Fed released minutes from its last meeting yesterday which indicated that some members think more stimulus measures for the economy may be desirable. They modestly raised their projection for GDP growth for the second half and into 2011 and said they see lower core inflation in the next few years.
In key economic data, ADP Employment Services data showing the private sector lost 84,000 jobs in December. That was fewer than the 145,000 jobs lost in November, but did exceed the 73,000 expected by economists. And the December ISM service index improved to 50.1 from 48.7 that was registered in November.
Closer home, the key benchmark ended slightly higher to hit 22-month closing highs on Wednesday, 6 January 2010 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% at 17,701.13, its highest closing since 28 February 2008 on that day.
As per provisional figures on NSE, foreign funds bought shares worth Rs 660.55 crore and domestic funds sold shares worth Rs 286.10 crore on Wednesday.
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