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Monday, January 18, 2010
Turnover surges
Tata Motors January 2010 futures at discount
Nifty January 2010 futures were at 5,269.70, at a discount of 5.15 points as compared to the spot closing of 5,274.85. Turnover in NSE's futures & options (F&O) segment surged to Rs 60,224.40 crore from Rs 48,879.73 crore on Friday, 15 January 2010.
Tata Motors January 2010 futures were at discount at 804 compared to the spot closing of 812.
ICICI Bank January 2010 futures were at discount at 861.95 compared to the spot closing of 862.90.
Housing Development & Infrastructure January 2010 futures were at premium at 390.55 compared to the spot closing of 389.10.
In the cash market, the S&P CNX Nifty rose 22.65 points or 0.43% at 5,274.85.
Q3 corporate earnings keep market up
Today's major news
Suzlon Energy wins wind turbine order from a Swedish firm; the stock ends 1.18% higher
Maruti Suzuki India hikes prices of most models; the stock surges 1.23%
ORG Informatics secures order; the stock jumps 8.17%
Shriram Transport Q3 net up by 58%; the stock rises 0.50%
Jaiprakash Associates Q3 net dips 39%; the stock closes 0.76% lower.
Click here for more stories
Post-market summary
Global signals
European indices were trading higher in morning, as mining shares gained on higher metal prices. At the time of writing this report FTSE 100 was trading 0.55% higher.
Asian indices had a mixed closing. Nikkei, Hang Seng and Jakarta Composite closed lower, while Shanghai Composite, Kospi and Straits Times closed marginally up. SGX Nifty closed 12 points higher.
Indian indices
Good Q3 corporate earnings helped Indian market buck the downtrend and end the day higher. Opening flat, the bellwether soon turned negative to the day’s low of 17505. However, buying in banking and public sector undertaking (PSU) shares brought the index into positive column and helped it scale the day’s high of 17712. The Sensex wrapped the session at 17641, 87 points higher. Nifty closed 23 points higher at 5275.
Market sentiment
Advancing shares merely outnumbered the trailing scrips. Of the 2,993 stocks on the BSE, 1,576 stocks advanced, whereas 1,346 stocks declined. Seventy one stocks closed unchanged.
Sectoral & stock screening
On good show by banks on Friday, BSE Bankex was higher by 2.41%--the highest for any sector-- followed by BSE PSU that surged 1.91% and BSE Auto that was up by 1.70% for the day. On the other hand, BSE HC fell the most losing 0.48% for the day followed by BSE Oil & Gas that declined 0.36%.
On the stocks' front, Hindustan Copper surged the most—by 18.82%—followed by NMDC, which rose 9.99%, and UCO Bank that jumped 7.50%. On the losers’ list, Madras Cement topped with a loss of 4.01% at closing bell, followed by Jet Airways, which slid by 3.56%, and UltraTech Cements, which fell by 3.35%.
Viewing volumes
UCO Bank saw the highest trading with over 0.64 crore shares changing hands on the BSE to be followed by wind turbine maker, Suzlon Energy India (0.55 crore shares), Ispat Industries (0.47 crore shares), Rashtriya Chemicals and Fertilisers (0.44 crore shares) and GTL Infrastructure (0.43 crore shares).
BSE Bulk Deals to Watch - Jan 18 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
18/1/2010 524412 Aarey Drugs DAXABEN VASANTKUMAR SHAH B 28901 53.94
18/1/2010 524412 Aarey Drugs VARSHABEN NAVINBHAI SONI B 32734 53.99
18/1/2010 524412 Aarey Drugs DAXABEN VASANTKUMAR SHAH S 26241 54.09
18/1/2010 524412 Aarey Drugs VARSHABEN NAVINBHAI SONI S 58527 54.36
18/1/2010 524412 Aarey Drugs PRAFULLABEN AMRUTBHAI SONI S 68545 53.87
18/1/2010 524412 Aarey Drugs UTSAV NITINBHAI SHAH S 25000 54.20
18/1/2010 530135 Akanksha Fin GOPAL PRASAD BAJORIA S 24035 13.05
18/1/2010 523694 Apcotex Inds HITESH SHASHIKANT JHAVERI B 29649 115.80
18/1/2010 505506 Axon Infotech SWAPNIL RATHI B 5000 28.15
18/1/2010 505506 Axon Infotech PRABHUDAS LILLADHER P LTD. B 5458 28.01
18/1/2010 505506 Axon Infotech DEEPAK HARIDAS MALVADE B 11000 27.88
18/1/2010 505506 Axon Infotech CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 7967 27.82
18/1/2010 505506 Axon Infotech SAJAN GUPTA AND OTHERS HUF B 4000 28.13
18/1/2010 505506 Axon Infotech SUNIL GUPTA AND OTHERS HUF B 5000 28.15
18/1/2010 505506 Axon Infotech PRABHUDAS LILLADHER P LTD. S 5458 28.14
18/1/2010 505506 Axon Infotech BHAVINA DEDHIA S 7000 28.15
18/1/2010 505506 Axon Infotech CHIMANLAL MANEKLAL SECURITIES PVT.LTD S 7967 28.11
18/1/2010 505506 Axon Infotech VISHNU SHANKAR B MISHRA S 5913 28.15
18/1/2010 505506 Axon Infotech UTTAM BHARAT BAGRI S 8400 28.15
18/1/2010 505506 Axon Infotech AJIT HIRJI DEDHIA S 7000 27.72
18/1/2010 531591 Bampsl Sec VISHAL PIPES LTD B 454747 0.86
18/1/2010 531591 Bampsl Sec KAUSHALYA GARG S 1025000 0.85
18/1/2010 532694 Bartronics MEGHA MAHESH KHANDELWAL B 218722 172.65
18/1/2010 532694 Bartronics MEGHA MAHESH KHANDELWAL S 217518 172.62
18/1/2010 526666 Bhartiya Intl SAL REAL ESTATES PVT LTD B 41698 88.55
18/1/2010 530249 Bridge Sec BHUPESH KASHINATH MEHTA B 35000 14.18
18/1/2010 530249 Bridge Sec NITA BANKESH BHAVSAR S 21000 14.20
18/1/2010 590061 Brushman India SAINATH HERBAL CARE MARKETING P.LTD B 150000 16.46
18/1/2010 590061 Brushman India BNP PARIBAS ARBITRAGE S 100000 16.51
18/1/2010 590061 Brushman India SAINATH HERBAL CARE MARKETING P.LTD S 100000 16.51
18/1/2010 531932 CG Impex VARSHABEN NAVINBHAI SONI S 58609 5.80
18/1/2010 531923 Dhampure Spec SAINATH HERBAL CARE MARKETING P.LTD B 50000 36.90
18/1/2010 531923 Dhampure Spec SAMPARK INTERNATIONAL PVT LTD S 45000 36.66
18/1/2010 517973 DMC Intl ANJANA GUPTA B 144890 24.00
18/1/2010 523618 Dredging Corp SMART EQUITY BROKERS PRIVATE LIMITED B 169664 724.14
18/1/2010 523618 Dredging Corp SMART EQUITY BROKERS PRIVATE LIMITED S 169664 724.71
18/1/2010 523732 Ecoboard Inds S V ENTERPRISES B 209458 14.54
18/1/2010 523732 Ecoboard Inds S V ENTERPRISES S 154011 14.52
18/1/2010 500132 Empee Sugars HITESH SHASHIKANT JHAVERI B 256389 33.23
18/1/2010 500132 Empee Sugars HITESH SHASHIKANT JHAVERI S 217334 33.15
18/1/2010 530337 Exelon Infra TAMAGHNA MUKHERJEE B 48310 51.73
18/1/2010 530337 Exelon Infra JINESH ASHWIN MATALIA B 68099 50.98
18/1/2010 530337 Exelon Infra D.K.STOCK INVESTMENTS B 37453 51.79
18/1/2010 530337 Exelon Infra OTMAL VAGLINGJI PUROHIT S 26811 52.00
18/1/2010 530337 Exelon Infra SHIVANI PIYUSH KOTHARI S 32000 51.75
18/1/2010 530337 Exelon Infra ASHLESH GUNVANTBHAISHAH S 38793 51.17
18/1/2010 530337 Exelon Infra PARESH RAMJIBHAI CHAUHAN S 39440 51.02
18/1/2010 530337 Exelon Infra KAMALA KANTA GUPTA S 56647 51.76
18/1/2010 590094 FARMAX RET MANTHENA VENKATASATYA VARAPRASADRAJU S 60000 177.34
18/1/2010 532666 FCS Software TRANSGLOBAL SECURITIES LTD. B 1788411 15.94
18/1/2010 532666 FCS Software TRANSGLOBAL SECURITIES LTD. S 1751411 15.95
18/1/2010 590024 Fert & Chem Trv TRANSGLOBAL SECURITIES LTD. B 81979 55.84
18/1/2010 590024 Fert & Chem Trv ARCADIA SHARE & STOCK BROKERS PVT. LTD B 40078 56.72
18/1/2010 590024 Fert & Chem Trv R B K SHARE BROKING LIMITED B 89863 54.09
18/1/2010 590024 Fert & Chem Trv SHYAMSUNDER BIYANI B 31175 56.35
18/1/2010 590024 Fert & Chem Trv TRANSGLOBAL SECURITIES LTD. S 81974 55.76
18/1/2010 590024 Fert & Chem Trv R B K SHARE BROKING LIMITED S 88733 52.46
18/1/2010 590024 Fert & Chem Trv SHYAMSUNDER BIYANI S 31175 56.17
18/1/2010 505712 Gujarat Auto HITESH SHASHIKANT JHAVERI B 1990 333.75
18/1/2010 505712 Gujarat Auto PREMLATA JAIN B 2950 333.75
18/1/2010 505712 Gujarat Auto HITESH SHASHIKANT JHAVERI S 2204 332.43
18/1/2010 505712 Gujarat Auto SNEHA DILIPBHAI VARIYA S 4000 333.75
18/1/2010 524080 Haryana Leather RINABEN BHAVESHBHAI CHOTAI B 45000 21.82
18/1/2010 524080 Haryana Leather BHAVESH SURYAKANTBHAI CHOTAI B 36106 21.35
18/1/2010 524080 Haryana Leather AMIT JAIN S 28888 21.49
18/1/2010 524080 Haryana Leather CAMPHAR SEC.& ADV.P.LTD. S 25000 21.11
18/1/2010 524080 Haryana Leather MAYUR NIRAV SHAH S 30000 21.85
18/1/2010 511682 IFL Promoters DMC INTERNATIONAL LTD B 20000 11.30
18/1/2010 532658 Indo Asian Fuse PKR HITECH INDUSTRIAL COPORATION LLP B 110000 70.51
18/1/2010 532658 Indo Asian Fuse VPM INDUSTRIAL CORPORATION LLP S 110000 70.51
18/1/2010 523467 Jai Mata Glass DINESHBHAI JAYANTILAL SHETH B 243060 2.70
18/1/2010 523467 Jai Mata Glass GOPAL R. JHAWAR B 75000 2.71
18/1/2010 523467 Jai Mata Glass CHIRAG MAHENDRA SHAH B 137603 2.71
18/1/2010 523467 Jai Mata Glass INVENTURE GROWTH & SECURITIES LTD. B 120277 2.70
18/1/2010 523467 Jai Mata Glass SENTHIL CHINNAPPAN B 116111 2.71
18/1/2010 523467 Jai Mata Glass GROWMORE PROPERTIES PVT LTD S 1608965 2.71
18/1/2010 523467 Jai Mata Glass DINESHBHAI JAYANTILAL SHETH S 243060 2.71
18/1/2010 523467 Jai Mata Glass CHIRAG MAHENDRA SHAH S 137603 2.73
18/1/2010 523467 Jai Mata Glass INVENTURE GROWTH & SECURITIES LTD. S 100277 2.78
18/1/2010 530955 Kailash Ficom SOMYA TRADERS PVT LTD B 56500 79.89
18/1/2010 530955 Kailash Ficom SHREE BAHUBALI INTERNATIONAL LTD B 105575 79.94
18/1/2010 530955 Kailash Ficom YASHMAN VYAPAR PVT LTD B 125000 80.00
18/1/2010 530955 Kailash Ficom SWAGATAM MARKETING PVT LTD B 75000 79.93
18/1/2010 530955 Kailash Ficom SIDHANT FINANCIAL SERVICES PVT LTD B 75000 79.93
18/1/2010 530255 KAY Power KAUSHALYA GARG B 86000 14.46
18/1/2010 515093 Madhav Marbles PRIMORE SOLUTIONS PVT.LTD B 65099 38.08
18/1/2010 515093 Madhav Marbles PRIMORE SOLUTIONS PVT.LTD S 65099 37.93
18/1/2010 531453 Mohit Inds KALPESHBHAI VASUDEVBHAI PADHYA S 25000 23.40
18/1/2010 590090 Octant Inter KALPANA SONU PADYAL S 169100 10.70
18/1/2010 531496 Omkar Overseas FUTURE ZONE ENTERTAINMENT PVT B 50000 53.65
18/1/2010 531496 Omkar Overseas ALLIANCE CONSULTANCY S 50000 53.65
18/1/2010 524689 Parenteral Drug SANJAYKUMAR JAGDISHPRASAD PODDAR B 50000 220.16
18/1/2010 524689 Parenteral Drug KAMLESH INDERMAL JAIN B 50000 190.00
18/1/2010 524689 Parenteral Drug DHANANJAYA MONEY MANAGEMENT SERVICES PVT LTD B 157100 219.21
18/1/2010 524689 Parenteral Drug MADHUKAR CHIMANLAL SHETH B 150000 221.00
18/1/2010 524689 Parenteral Drug JYOTSNA LAXMIKANT TANNA S 100000 190.00
18/1/2010 524689 Parenteral Drug DHANANJAYA MONEY MANAGEMENT SERVICES PVT LTD S 172100 221.29
18/1/2010 511702 Parsharti Inv BHAVESH SHANTILAL TRIVEDI B 18002 40.90
18/1/2010 511702 Parsharti Inv PREMILA MAHENDRA SHAH B 25000 41.95
18/1/2010 511702 Parsharti Inv BHAVESH SHANTILAL TRIVEDI S 19701 41.46
18/1/2010 513228 Pennar Inds COPTHALL MAURITIUS INVESTMENT LIMITED S 651343 33.98
18/1/2010 503873 Priyadarshini Spn PRADEEP KR AGGARWAL B 53175 20.11
18/1/2010 533083 RISHABHDEV YOGESH JAISWAL B 291836 16.02
18/1/2010 533083 RISHABHDEV ARIHANT SEC & INVESTMENT B 134297 16.25
18/1/2010 533083 RISHABHDEV SARSWATI VINCOM LTD B 167570 15.75
18/1/2010 533083 RISHABHDEV CREDO INDIA THEMATIC FUND LIMITED S 160000 15.75
18/1/2010 533083 RISHABHDEV YOGESH JAISWAL S 312214 15.88
18/1/2010 533083 RISHABHDEV ARIHANT SEC & INVESTMENT S 132297 15.99
18/1/2010 533083 RISHABHDEV SARSWATI VINCOM LTD S 167570 15.65
18/1/2010 533083 RISHABHDEV KUVERA FUND LTD S 328000 15.75
18/1/2010 531374 SAAG RR Infra SHILPA MILIND DESAI B 60000 26.64
18/1/2010 531374 SAAG RR Infra SHILPA MILIND DESAI S 60000 26.41
18/1/2010 530025 Samyak Intl PYARE LAL B 18892 30.46
18/1/2010 505141 Scooters India KAUSHAL GUPTA B 11800 43.75
18/1/2010 532886 SEL Mfg Company NIKON FINLEASE PVT.LTD B 89942 102.73
18/1/2010 532886 SEL Mfg Company NIKON FINLEASE PVT.LTD S 89942 102.71
18/1/2010 531841 Subuthi Finance DHIRAJLAL V SANGHVI HUF B 29404 41.85
18/1/2010 512257 Swasti Vinay Gem ABHILASHA MONEY OPERATIONS PVT LTD B 495000 5.01
18/1/2010 512257 Swasti Vinay Gem ALKEN MANAGEMENT & FINANCIAL S B 500000 4.90
18/1/2010 512257 Swasti Vinay Gem ASHIRWAD SHELTERS PVT. LTD. S 1000000 4.96
18/1/2010 500408 Tata Elxsi OPG SECURITIES P LTD B 201998 318.27
18/1/2010 500408 Tata Elxsi OPG SECURITIES P LTD S 201998 318.63
18/1/2010 533121 THINKSOFT A.K.G. STOCK BROKERS PVT. LTD. B 144896 439.10
18/1/2010 533121 THINKSOFT CHANDARANA INTERMIDIARY BROKERS PVT LTD B 52981 438.74
18/1/2010 533121 THINKSOFT A.K.G. STOCK BROKERS PVT. LTD. S 144896 439.01
18/1/2010 533121 THINKSOFT CHANDARANA INTERMIDIARY BROKERS PVT LTD S 52981 438.99
18/1/2010 506808 Tuticorin Alk PRAKASH FINANCE PVT.LTS S 100000 10.44
18/1/2010 532765 Usher Agro VIKAS SINGH S 118235 49.57
18/1/2010 530109 Vantage Corp NARESH CHAND JAIN B 28050 19.18
18/1/2010 530109 Vantage Corp SACHIN SUMATILAL KARNAVAT B 20000 19.16
18/1/2010 530109 Vantage Corp NARESH CHAND JAIN S 28050 19.11
18/1/2010 517393 Vintron Info JIGNASA NIKUN JSHAH S 38926 6.50
18/1/2010 506146 Visagar Poly ANISHA KUMARI B 4179 1411.07
18/1/2010 506146 Visagar Poly JAYANTILAL ASHDHIR SAVLA S 5000 1403.68
18/1/2010 531249 Well Pack Papers SHOBHNABEN R PARMAR B 36659 410.54
18/1/2010 531249 Well Pack Papers PANDYA YAMINIBEN M B 32688 410.73
18/1/2010 531249 Well Pack Papers NAVNATH SAKHARAM GHONE B 24000 410.46
18/1/2010 531249 Well Pack Papers SANDEEP GOMASE B 28500 410.46
18/1/2010 531249 Well Pack Papers SHOBHNABEN R PARMAR S 33092 410.57
18/1/2010 531249 Well Pack Papers PANDYA YAMINIBEN M S 32265 410.98
18/1/2010 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR S 28169 410.28
18/1/2010 531249 Well Pack Papers AMAR PREMCHAND WALMIKI S 24500 410.58
18/1/2010 531249 Well Pack Papers SANDEEP GOMASE S 28500 410.65
18/1/2010 530091 Zyden Gentec DEEPAK REAL ESTATE DEVE. I. P.L S 240000 2.99
* B - Buy, S - Sell
NSE Bulk Deals to Watch - Jan 18 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
18-JAN-2010,ATLANTA,Atlanta Limited,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD.,BUY,94447,193.37,-
18-JAN-2010,BIL,Bhartiya Intl Limited,SAL REAL ESTATES (P) LTD,BUY,40000,89.51,-
18-JAN-2010,FCSSOFT,FCS Software Solutions Li,HI-GROWTH CORPORATE SERVICES PVT. LTD.,BUY,1462501,15.90,-
18-JAN-2010,FCSSOFT,FCS Software Solutions Li,TRANSGLOBAL SECURITIES LTD.,BUY,2025639,15.91,-
18-JAN-2010,FCSSOFT,FCS Software Solutions Li,V. P. CONSULTANTS PRIVATE LIMITED,BUY,1819452,15.90,-
18-JAN-2010,ITI,ITI Ltd.,BP FINTRADE PRIVATE LIMITED,BUY,102883,56.80,-
18-JAN-2010,ITI,ITI Ltd.,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,174142,56.67,-
18-JAN-2010,ITI,ITI Ltd.,OM INVESTMENTS,BUY,120586,56.55,-
18-JAN-2010,ITI,ITI Ltd.,PRASHANT JAYANTILAL PATEL,BUY,109692,56.31,-
18-JAN-2010,ITI,ITI Ltd.,TRANSGLOBAL SECURITIES LTD.,BUY,119223,56.12,-
18-JAN-2010,MADHAV,Madhav Marbles and Granit,PRIMORE SOLUTIONS PVT.LTD,BUY,55365,38.46,-
18-JAN-2010,MBLINFRA,MBL Infrastructures Ltd,SHAILESH A. JHAVERI HUF,BUY,165000,202.12,-
18-JAN-2010,RKFORGE,Ramkrishna Forgings Ltd,UNO METALS LTD,BUY,115000,109.29,-
18-JAN-2010,SELMCL,SEL Manufacturing Company,NIKON FINLEASE PVT. LTD,BUY,115250,102.47,-
18-JAN-2010,TATAELXSI,Tata Elxsi (India) Ltd,SHARAD K SHAH,BUY,357401,316.83,-
18-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,162200,438.05,-
18-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,BHARAT RATILAL SHAH,BUY,50850,443.18,-
18-JAN-2010,TIDEWATER,Tide Water Oil Co. (India,21ST CENTURY MNG SER LTD,BUY,9957,5235.00,-
18-JAN-2010,TIDEWATER,Tide Water Oil Co. (India,KAMAL KUMAR DUGAR & CO (PROP) KAMAL KUM,BUY,10929,5297.60,-
18-JAN-2010,TIDEWATER,Tide Water Oil Co. (India,PILOT CONSULTANTS PRIVATE LIMITED,BUY,6300,5309.92,-
18-JAN-2010,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1440132,21.03,-
18-JAN-2010,ATLANTA,Atlanta Limited,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD.,SELL,94447,194.54,-
18-JAN-2010,BIRLACOT,Birla Cotsyn (India) Limi,AGRAJ MERCANTILE PRIVATE LIMITED,SELL,10000000,1.40,-
18-JAN-2010,FCSSOFT,FCS Software Solutions Li,HI-GROWTH CORPORATE SERVICES PVT. LTD.,SELL,1471301,15.91,-
18-JAN-2010,FCSSOFT,FCS Software Solutions Li,TRANSGLOBAL SECURITIES LTD.,SELL,2025639,15.94,-
18-JAN-2010,FCSSOFT,FCS Software Solutions Li,V. P. CONSULTANTS PRIVATE LIMITED,SELL,1819452,15.93,-
18-JAN-2010,ITI,ITI Ltd.,BP FINTRADE PRIVATE LIMITED,SELL,105883,56.76,-
18-JAN-2010,ITI,ITI Ltd.,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,171636,56.58,-
18-JAN-2010,ITI,ITI Ltd.,OM INVESTMENTS,SELL,120586,56.62,-
18-JAN-2010,ITI,ITI Ltd.,PRASHANT JAYANTILAL PATEL,SELL,109692,56.31,-
18-JAN-2010,ITI,ITI Ltd.,TRANSGLOBAL SECURITIES LTD.,SELL,117223,56.25,-
18-JAN-2010,MADHAV,Madhav Marbles and Granit,PRIMORE SOLUTIONS PVT.LTD,SELL,47413,38.16,-
18-JAN-2010,RKFORGE,Ramkrishna Forgings Ltd,AKG FINVEST LTD,SELL,115000,109.29,-
18-JAN-2010,SELMCL,SEL Manufacturing Company,NIKON FINLEASE PVT. LTD,SELL,115250,102.60,-
18-JAN-2010,TATAELXSI,Tata Elxsi (India) Ltd,SHARAD K SHAH,SELL,30793,320.66,-
18-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,162200,438.57,-
18-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,BHARAT RATILAL SHAH,SELL,50850,449.09,-
18-JAN-2010,TIDEWATER,Tide Water Oil Co. (India,KAMAL KUMAR DUGAR & CO (PROP) KAMAL KUM,SELL,10929,5294.66,-
18-JAN-2010,TIDEWATER,Tide Water Oil Co. (India,MADANLAL LIMITED,SELL,25000,5300.00,-
18-JAN-2010,TODAYS,Todays Writing Products L,CANARA BANK,SELL,85000,25.96,-
18-JAN-2010,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1434988,21.06,-
Banking, auto shares advance
The key benchmark indices edged higher on reports banks are unlikely to raise lending rates in the near term even if the central bank signals a tightening of the monetary policy by hiking the cash reserve ratio (CRR). Robust Q3 results from IT giant TCS and firm European market also underpinned sentiment. But the market was volatile. The BSE 30-share Sensex rose 86.78 points or 0.49%, off close to 75 points from the day's high and up close to 135 points from the day's low.
Index heavyweight Reliance Industries edged lower in volatile trade. Realty stocks fell. But banking, auto and IT stocks gained. GAIL India jumped on robust Q3 result. The market breadth was positive.
The market was volatile. Stocks recovered from lower level in early trade. The market surged in morning trade as US index futures rose. The market pared gains in mid-morning trade. The market surged to a fresh intraday high in early afternoon trade. The market pared gains in afternoon trade. It further trimmed gains in mid-afternoon trade.
Bankers, economists and bond markets expect a hike in the CRR by the central bank at a quarterly policy review on 29 January 2010. CRR is a slice of deposits that banks have to mandatorily park with the central bank. However, banks do not want to tweak rates in the near term now, given the surplus liquidity in the system and poor demand for loans. The surplus liquidity sloshing in the banking system daily is on an average in the range of Rs 50,000 crore-60,000 crore, which is reflected in the money parked by banks with RBI through its reverse repo window. A 50 basis points hike in CRR will drain out Rs 21,000 crore from the system. The CRR is now at 5%.
On 8 January 2010, State Bank of India chairman OP Bhatt had indicated to the media that interest rates will remain stable until June 2010 even if the CRR was raised by 50 basis points. "All banks are looking forward for more economic activity. Credit growth has not happened in a significant manner in the past 12 month or more. But because of the high liquidity overhang, my view is that regardless of what RBI does... rates will remain stable till June 2010," Bhatt had said.
The timing and sequence of exit from an easy policy is still a challenge, Reserve Bank of India Governor D Subbarao said on Monday, 18 January 2010. Subbarao, who was speaking at a conference in Goa, also said the challenge was to support growth without compromising price stability. The Reserve Bank of India will review monetary policy on 29 January 2010.
Wholesale sugar prices in India have dropped in the past two to three days, while retail rates are expected to fall in 10-15 days, Farm Minister Sharad Pawar told reporters on Monday.
Food prices are expected by some economists to drive headline wholesale inflation to 8% by the end of March and with economic growth at 7.9% in the September 2009 quarter, the RBI may begin its retreat from crisis policies. At the same time, the central bank is under heavy pressure from the government not to derail growth momentum. The headline inflation jumped to a one-year high in December 2009, reinforcing views the Reserve Bank of India (RBI) will start increasing reserve requirements later this month to contain price pressures as the economic recovery strengthens.
The wholesale price index rose 7.3% in December 2009 from a year earlier, its highest since November 2008 and accelerating from a 4.8% gain in November 2009. Data also showed last week that industrial output grew at faster-than-expected 11.7% in November 2009 from a year earlier
India is on course to return to pre-crisis growth rates of about 9% from 2011, if key reforms continue, having emerged from the global economic crisis less scathed than most other nations. That's according to a guest opinion article recently published by Standard & Poor's Ratings Services, titled "Why India Will Continue To Gain Stature In The Global Economy." The guest opinion article says that India's large, young, and growing population, the rising income of the middle class, and the country's high savings rate continue to support strong domestic demand, tempering the impact of weak export markets and other external stimuli.
The initial public offer (IPO) of fast-food chain Jubilant Foodworks was subscribed 0.14 times by 16:00 IST. The company has fixed IPO price band of Rs 135-Rs 145 per share. The issue opened for bidding today.
The company said during the weekend that it has received bids for 30.6 lakh shares at Rs 145 per share (the upper end of the price band) towards the anchor investor portion of the offer. The anchor investors to whom equity shares have been allocated pursuant to the offer include Arisaig Partners, Blackrock, Canara Robeco Mutual Fund, Fidelity, Franklin Templeton, HSBC, Reliance Mutual Fund, SBI Mutual Fund, T Rowe Price and Ward Ferry.
Meanwhile, the finance ministry is reportedly likely to keep the corporate tax rate unchanged at 30% in the coming budget, as it faces stiff resistance from companies to the draft direct tax code's proposal to cut the rate to 25% and remove all exemptions. The Central Board of Direct Taxes, the key government body that formulates and administers tax policy, is not willing to cut rates, as any reduction in statutory rate will further reduce the effective rate and dent the government's revenues. The government is already struggling with a 16-year high fiscal deficit, equivalent to 6.8% of the gross domestic product for the 2009-10 fiscal year.
The stock market regulator the Securities and Exchange Board of India (SEBI) reportedly wants the government to scrap tax benefits for corporates investing in mutual funds (MFs), a proposal, if accepted by the government, could deal a body blow to local asset management companies and other firms.
Some countries may suffer double-dip recessions if they exit strategies taken to battle the global financial crisis too early, head of International Monetary Fund, Dominique Strauss-Kahn, said on Monday.
The world will likely continue to live with ripple effects from the financial crisis for years, World Bank President Robert Zoellick said on Friday. Speaking at a news conference in Berlin, Zoellick said the World Bank estimated that a further 64 million people would fall into extreme poverty between 2009 and 2010 as a result of the crisis.
European shares rose on Monday, with banks recovering some of the losses they suffered on Friday following JP Morgan's results. The key benchmark indices in France, Germany and UK rose by between 0.44% to 0.68%.
The European Central Bank on Monday said it would stop conducting one-week Swiss franc liquidity swap operations after 31 January 2010, ending an emergency measure put in place to combat the financial crisis. The Frankfurt-based ECB said the move, decided in agreement with the Swiss National Bank, was made against the background of declining demand and improved conditions in the funding markets.
Asian markets were mixed. The key benchmark indices in Hong Kong, Indonesia, Japan, and Taiwan fell by between 0.17% to 1.16%. Key benchmark indices in China, South Korea and Singapore rose by between 0.12% to 0.59%.
Bank of Japan Governor Masaaki Shirakawa pledged on Monday to keep monetary policy easy to help pull the country out of deflation, reassuring the government the central bank will cooperate to support an economic recovery.
US stocks slid from 15-month highs on Friday after JPMorgan Chase & Co reported deep fourth-quarter loan losses that raised concerns about earnings for the banking industry. The Dow Jones industrial average plunged 100.90 points, or 0.94%, to 10,609.65. The Standard & Poor's 500 Index was down 12.43 points, or 1.08%, to 1,136.03. The Nasdaq Composite Index shed 28.75 points, or 1.24%, to 2,287.99.
Also weighing on stocks was consumers' caution about the economy as reflected in the Reuters/University of Michigan Surveys of Consumers. It showed preliminary sentiment was weaker than expected in early January due to worries over income and high unemployment.
Other data on Friday showed US consumer prices rose modestly while industrial output rose, suggesting the economy was growing but not generating enough inflation to trouble the Federal Reserve. Investors' appetite for riskier assets fell due to doubts about Greece's fiscal health. European Central Bank President Jean-Claude Trichet said Greece must work out its own economic problems
US markets remain closed on Monday, 18 January 2010 for Martin Luther King Jr. Day.
Trading in US index futures indicated that the Dow could gain 11 points at the opening bell on Tuesday, 19 January 2010
Closer home, the BSE 30-share Sensex rose 86.78 points or 0.49% at 17,641.08. The Sensex fell 48.80 points at the day's low of 17,505.50 in early trade. At the day's high of 17,712.60, the Sensex rose 158.30 points in early afternoon trade.
The S&P CNX Nifty rose 22.65 points, or 0.43% to 5274.85. Nifty January 2010 futures were at 5,269.70, at a discount of 5.15 points as compared to the spot closing of 5,274.85. Turnover in NSE's futures & options (F&O) segment surged to Rs 60,224.40 crore from Rs 48,879.73 crore on Friday, 15 January 2010.
Sectoral indices on BSE were mixed. BSE's banking sector index Bankex (up 2.41%), BSE Auto index (up 1.7%), BSE Consumer Durables index (up 1.37%), and BSE IT index (up 0.59%), outperformed the Sensex. BSE Capital Goods index (up 0.13%), BSE Realty index (down 0.09%), BSE FMCG index (down 0.11%), BSE Power index (down 0.22%), BSE Metal index (down 0.32%), BSE Oil & Gas index (down 0.36%) and BSE Healthcare index (down 0.48%), underperformed the Sensex.
The BSE Mid-Cap index rose 0.57% and the BSE Small-Cap index rose 0.63%. Both the indices outperformed the Sensex.
The market breadth, indicating the overall health of the market was positive. The breadth weakened from a strong breadth earlier in the day. On BSE, 1573 shares advanced compared with 1346 that declined. A total of 72 shares remained unchanged.
Among the 30-member Sensex pack, 19 rose while the rest fell.
BSE clocked a turnover of Rs 5980 crore, lower than Rs 6139.28 crore on Friday, 15 January 2010.
Index heavyweight Reliance Industries (RIL) fell 0.87% to Rs 1099.55. The stock was volatile. It hit a high of Rs 1115.70 and a low of Rs 1075.35. RIL last week raised $763 million through a block sale of 3.3 crore shares. Reliance, which is bidding for bankrupt LyondellBasell Industries, had previously sold treasury shares to state-owned insurer Life Insurance Corp of India raising $577 million. As per reports last week, Reliance had sweetened its offer to buy a controlling stake that valued LyondellBasell at $13.5 billion. RIL will announce its Q3 result on Friday, 22 January 2010.
GAIL India rose 3.1% after net profit jumped 239.41% to Rs 859.95 crore in Q3 December 2009 over Q3 December 2008. The company announced the result during market hours today.
Banking stocks gained on signs of improvement in credit growth. India's largest private sector bank by net profit ICICI Bank rose 2.64% even as its ADR fell 1.36% on Friday. The bank will announce its Q3 result on Thursday, 21 January 2010.
India's largest private sector bank by operating income HDFC Bank rose 4.53%, extending Friday's 0.33% rise after net profit jumped 31.6% to Rs 818.50 crore on 5.4% growth in net total income to Rs 3076.90 crore in Q3 December 2009 over Q3 December 2008. The result exceeded market expectations. Its ADR fell 0.94% on Friday. The bank announced the result during market hours on Friday, 15 January 2010.
India's largest bank by net profit and branch network State Bank of India rose 0.59%. Non-performing loans (NPAs) in the small and medium enterprise sector (SME) are on the rise, chairman O.P Bhatt said recently. The state-run bank paid advance tax of Rs 1795 crore versus Rs 1700 crore.
India's largest dedicated housing finance firm by revenue HDFC jumped 1.48%. The lender will announce its Q3 result on Wednesday, 20 January 2010.
After a significant moderation in systems loan growth during the period October-December 2009, the banking system credit growth has gradually started gaining momentum, as per the latest RBI data
IT stocks rose after stellar Q3 result by IT major Tata Consultancy Services after trading hours on Friday. India's largest IT exporter by sales Tata Consultancy Services rose 0.99% extending Friday's 1.23%. gains. Consolidated net profit as per US accounting standard rose 11% to Rs 1822.20 basis crore on 3% growth in sales to Rs 7650.30 crore in Q3 December 2009 over Q2 September 2009. The third quarter earnings surpassed market estimates as demand for outsourcing surged and prices stabilised, fuelling hopes of recovery in the showpiece sector.
India's third largest software services exporter Wipro rose 1.74% as its ADR rose 0.45% on Friday. The company will announce its Q3 result on Wednesday, 20 January 2010. The company is reportedly set to launch a $1 billion sponsored American Depository Receipts (ADR) offering that could possibly see the promoters and promoter group led by Azim Premji offloading some of their stake in the company.
IT bellwether Infosys rose 0.14%. Infosys' ADR fell 1.38% on Friday. Infosys, last week, raised its full-year revenue and profit outlook after strong Q3 results and on improving trend for outsourcing orders. The company's consolidated net profit as per Indian accounting standards rose 2.72% to Rs 1582 crore on 2.8% rise in consolidated revenue to Rs 5741 crore in Q3 December 2009 over Q2 September 2009. The company announced result on Tuesday 12 January 2010.
Infosys has raised earnings and revenue guidance for the year ending March 2010 (FY 2010) both in rupee and dollar terms. Infosys has forecast a 1.8% to 2% growth in consolidated dollar revenue for FY 2010 compared from a drop it had projected at the time of announcing Q2 September 2009 results. Infosys said FY 2010 consolidated revenue in dollar terms could rise to $4.75 billion to $4.76 billion, from $4.6 billion to $4.62 billion forecast earlier. The consolidated earnings per American depository share for the full year is seen rising 0.4% to $2.26, the company said in a statement.
Most auto stocks rose on expectations of good Q3 results. India's top truck maker by sales India's largest tractor marker by sales Mahindra & Mahindra (M&M) rose 1.97%. M&M marked its entry 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 motorcycle maker by sales Hero Honda Motors rose 4.41%, on bargain hunting after falling for the last three days. Hero Honda will comfortably exceed its fiscal 2009/10 sales target of 40 lakh units, its managing director Pawan Munjal said to media on 7 January 2010. Sales jumped 74% to 375,838 units in December 2009 over December 2008.
India's largest car maker by sales Maruti Suzuki rose 1.23% after the company said on Saturday 16 January 2010 it has raised the prices of some of its models to recover the rise in input costs. It said the price increases, effective immediately, varied from 0.12% to 1.9% with an average price rise of 0.6%. There was no increase in prices of its recently launched five-seater multipurpose vehicle Eeco, the petrol version of its Swift hatchback and its Gypsy utility vehicles, it said in its statemen. "For some models the increase in the costs are being absorbed by the company, in the light of market situation," it said. Maruti, in which Japan's Suzuki Corp has a 54.2 % stake, sells one of every two cars in India.
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.
Bajaj Auto rose 0.62% extending Friday's 1.3% gains. Net profit surged 189.20% to Rs 507.29 crore on 57.9% spurt in net sales to Rs 3165.84 crore in Q3 December 2009 over Q3 December 2008. The company announced the result after market hours on Tuesday, 12 January 2010.
Tata Motors, India's largest commercial vehicle maker by sales, rose 1.46%. The company said on Friday it sold 74,707 vehicles globally in December 2009, a rise of 84 % from a year earlier. This included sales of Jaguar and Land Rover, which rose 33% from a year earlier to 21,134 vehicles, it said in a statement.
TVS Motors rose 0.19%. Sales rose 34% to 119,701 units in December 2009 over December 2008.
Rate sensitive realty stocks fell on profit taking. Among realty stocks, Ackruti City, Unitech and Phoenix Mills, Indiabulls Real Estate fell by between 0.44% to 1.19%.
But, India's largest realty player by market capitalization DLF rose 0.21%. DLF has reportedly decided to exit from its mutual fund venture, DLF Pramerica Mutual Fund, by selling its entire stake to the overseas partner in the venture, the US-based Prudential Financial, as the company seeks to focus on its core business. Prudential Financial (PFI) is expected to buy DLF's 39% stake in the asset management company that is yet to start operations.
Jaiprakash Associates fell 0.76% after net profit fell 38.9% to Rs 103.02 crore in Q3 December 2009 over Q3 December 2008. The company said the latest quarter profit was after a one-time expense of Rs 212 crore towards employee compensation. The company announced the result during market hours today.
NTPC, India's largest utility by sales, fell 0.45% snapping last two days' gains. The company said last week its follow-on public offer of 41.22 crore shares, or 5% in the company, will open on 3 February 2010 and close on 5 February 2010. The government holds an 89.5% stake in NTPC.
FMCG company and hotel chain operator ITC fell 0.65%. As per recent reports the firm expects to add 8-10 hotels in India over the next 3-5 years as a growing economy boosts demand for rooms. ITC's hotels division would add two properties in 2010/11 at Chennai in south India and Kolkata in the eastern region, but the details of investment were not disclosed.
Among other FMCG stocks, Britannia Industries, Tata Tea and Marico fell by between 0.65% to 1.38%.
Capital goods stocks rose on expectations of good Q3 result. ABB, Praj Industries, BEML rose by between 0.12% to 2.01%.
India's largest power equipment maker by sales Bharat Heavy Electricals (BHEL) rose 0.23%. The company will announce its Q3 result on Thursday, 21 January 2010Bhel on Thursday 14 January 2010 said it has bagged a Rs 200-crore order from PowerGrid Corporation of India for supplying insulators for setting up transmission lines.
India's largest engineering & construction firm by sales Larsen & Toubro rose 0.22% on bargain hunting after last two days' losses. The company will announce its Q3 result on Thursday, 21 January 2010. The company said recently it has received contracts worth Rs 2,325 crore for commercial and residential construction in Maharashtra, Gujarat, West Bengal and Chandigarh
Metal stocks fell after LMEX, a gauge of six metals traded on the London Metal Exchange, fell 0.88% on Friday, 15 January 2010. Steel Authority of India, Hindustan Zinc, Jindal Steel & Power, JSW Steel and Sterlite Industries fell by between 0.76% to 1.89%.
Tata Steel, the world's eighth-largest steelmaker fell 1.19%. The company said on 5 January 2010 sales from its Indian operations rose 73% in December 2009 to 636,000 tonnes from a year earlier. 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
Three sugar pivotals fell after Farm Minister Sharad Pawar told media that wholesale sugar prices in India have dropped in the past two to three days, while retail rates are expected to fall in 10-15 days. Balrampur Chini, Shree Renuka Sugar and Bajaj Hindusthan Sugar fell by between 1.49% to 2.89%.
. The government last week announced a slew of measures such as duty-free sugar imports and enhanced allocation of rice and wheat for states to check the runway prices.
Cals Refineries clocked the highest volume of 3.49 crore shares on BSE. FCS Software (1.19 crore shares), Sanraa Media (0.69 crore shares), UCO Bank (0.64 crore shares) and Radhe Developers (0.56 crore shares were the other volume toppers in that order.
NMDC clocked the highest turnover of Rs 213.73 crore on BSE. Engineers India (Rs 197.73 crore), State Trading Corporation of India (Rs 192.65 crore), Hindustan Copper (Rs 171.06 crore) and Dredging Corporation of India (Rs 118.39 crore) were the other turnover toppers in that order.
Grey Market Premium - Jubilant, Aqua Logistics, Infinite Computer Solutions
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Jubilant Food Works Ltd. | 135 to 145 | 32 to 33 |
| Aqua Logistics | 220 to 230 | 18 to 20 |
| Infinite Computer | 155 to 165 | 42 to 44 |
| Birla Shloka (FPO) | 45 to 50 | Discount |
Market may extend Friday's losses on weak Asian stocks; Jubilant Foodworks IPO opens today
The market may extend Friday (15 January 2010)'s losses on weak Asian stocks. US markets fell on Friday after JP Morgan Chase & Co. reported a loss in retail banking and after US consumer confidence trailed forecasts.
Jaiprakash Associates, GAIL India and Sesa Goa will unveil Q3 results today, 18 January 2010. Investors will eye the response to the initial public offer (IPO) of fast-food chain Jubilant Foodworks. A strong response to the IPO may boost the market. The company has fixed IPO price band of Rs 135-Rs 145 per share. The IPO opens for subscription today, 18 January 2010 and closes on 20 January 2010
The finance ministry is reportedly likely to keep the corporate tax rate unchanged at 30% in the coming budget, as it faces stiff resistance from companies to the draft direct tax code's proposal to cut the rate to 25% and remove all exemptions. The Central Board of Direct Taxes, the key government body that formulates and administers tax policy, is not willing to cut rates, as any reduction in statutory rate will further reduce the effective rate and dent the government's revenues. The government is already struggling with a 16-year high fiscal deficit, equivalent to 6.8% of the gross domestic product for the 2009-10 fiscal year.
Meanwhile, the stock market regulator the Securities and Exchange Board of India (SEBI) reportedly wants the government to scrap tax benefits for corporates investing in mutual funds (MFs), a proposal, if accepted by the government, could deal a body blow to local asset management companies and other firms.
Food prices are expected by some economists to drive headline wholesale inflation to 8% by the end of March and with economic growth at 7.9% in the September 2009 quarter, the RBI may begin its retreat from crisis policies. At the same time, the central bank is under heavy pressure from the government not to derail growth momentum. The headline inflation jumped to a one-year high in December 2009, reinforcing views the Reserve Bank of India (RBI) will start increasing reserve requirements later this month to contain price pressures as the economic recovery strengthens.
The wholesale price index rose 7.3% in December 2009 from a year earlier, its highest since November 2008 and accelerating from a 4.8% gain in November 2009. Data also showed last week that industrial output grew at faster-than-expected 11.7% in November 2009 from a year earlier
In stock-specific news, net profit of UltraTech Cement declined 17.76% to Rs 196.03 crore on 1.29% rise in sales to Rs 1651.81 crore in Q3 December 2009 over Q3 December 2008. The company announced the result on Saturday, 16 January 2010.
The world will likely continue to live with ripple effects from the financial crisis for years, World Bank President Robert Zoellick said on Friday. Speaking at a news conference in Berlin, Zoellick said the World Bank estimated that a further 64 million people would fall into extreme poverty between 2009 and 2010 as a result of the crisis.
Asian stocks fell on Monday after JP Morgan Chase & Co. reported a loss in retail banking, US consumer confidence trailed forecasts and commodity prices sank. The key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea, Singapore and Taiwan rose by between 0.11% to 1.83%.
US stocks slid from 15-month highs on Friday after JPMorgan Chase & Co reported deep fourth-quarter loan losses that raised concerns about earnings for the banking industry. The Dow Jones industrial average plunged 100.90 points, or 0.94%, to 10,609.65. The Standard & Poor's 500 Index was down 12.43 points, or 1.08%, to 1,136.03. The Nasdaq Composite Index shed 28.75 points, or 1.24%, to 2,287.99.
Also weighing on stocks was consumers' caution about the economy as reflected in the Reuters/University of Michigan Surveys of Consumers. It showed preliminary sentiment was weaker than expected in early January due to worries over income and high unemployment.
Other data on Friday showed US consumer prices rose modestly while industrial output rose, suggesting the economy was growing but not generating enough inflation to trouble the Federal Reserve. Investors' appetite for riskier assets fell due to doubts about Greece's fiscal health. European Central Bank President Jean-Claude Trichet said Greece must work out its own economic problems
US markets remain closed on Monday, 18 January 2010 for Martin Luther King Jr. Day.
Closer home, the key benchmark indices ended a choppy trading session lower on Friday, 15 January 2010, defying mostly higher global stocks and snapping previous two days' gains. The BSE 30-share Sensex fell 30.57 points or 0.17% at 17,554.30 on that day.
As per provisional figures on NSE, foreign funds sold shares worth Rs 930.09 crore and domestic funds bought shares worth Rs 680.95 crore on Friday.
Earning reports fail to cheer US stocks
Friday's losses push US stocks for a weekly loss
With a sharp drop on Friday, 15 January, 2010, US stocks registered losses for the week that ended on that very day. It was the largest daily loss for US stocks on Friday after a long time and it came in spite of better than expected earning reports from a couple of important Dow components. The economic reports that checked in for the day were mixed in nature.
For the week, that ended on Friday, 15 January 2010, Dow ended lower by 8.54 points (0.1%) at 10,609.65. Nasdaq ended lower by 29.18 points (1.3%) at 2287.99. S&P500 lost 8.95 points (0.8%) at 1136.03. Stocks gained in the earlier part of the week. Alcoa kicked off the earning season on Monday, 11 January, 2010.
Stocks once again had registered gains on Wednesday, 13 January and Thursday, 14 January after a drop earlier on Tuesday, 12 January. But Friday witnessed huge loses for the indices.
At the end of the day on Friday, 15 January, 2010, the Dow Jones Industrial Average ended lower by 100.9 points at 10,609.95. Nasdaq ended lower by 28.75 points at 2287.99. S&P 500 ended lower by 12.43 points at 1136.03. All ten sectors ended in the red led by financial, technology and telecom sectors.
There were quite a few catalysts to dictate market momentum on Friday. First came earning reports and then economic reports.
Among earning reports for the day, JP Morgan Chase reported stronger-than-forecast $3.3 billion quarterly profit but failed to lift its dividend as some had hoped. On the other hand, Intel announced better-than-expected earnings of $0.40 per share. It even went on and issued solid revenue guidance for the current quarter.
But stocks failed to react positively to these earnings. Stocks deepened their losses after a survey of consumer sentiment for January showed less confidence than expected.
Also, the Federal Reserve in US reported on Friday, 15 January, 2010 that output of the nation's factories, mines and utilities rose a seasonally adjusted 0.6% in December, 2009, the sixth increase in a row. The 0.6% gain in output in December was stronger than the 0.5% expected by market. But, output in December was down 2% compared with December 2008.
Colder-than-usual weather contributed to the gain in December, with utility production rising a seasonally adjusted 5.9%. The output of factories dropped 0.1% in December after a 0.9% gain in November. Output of mines rose 0.2% in December.
Separately, the Commerce Department in US reported on Friday, 15 January 2010 that its consumer price index increased 0.1% in December 2009, down from a 0.4% advance in November. This is the lowest rate since July and is slightly below expectations of a 0.2% rise. The core CPI, excluding food and energy costs, also rose 0.1%, little more than the unchanged reading in November.
Crude oil prices slipped once again on Friday, 15 January 2010. With Friday's drop, it ended lower on all the days of the week. Prices fell as the dollar turned strong as earning and economic reports failed to cheer investors at Wall Street. On Friday, crude-oil futures for light sweet crude for February delivery closed at $78/barrel (lower by $1.39 or 1.8%). Crude ended the week lower by 5.7%. On a year to date basis till date, crude is lower by 2.1%.
Paris based, IEA, left its forecasts for global oil demand for 2010 virtually unchanged in its latest monthly report. It forecasts demand of 86.3 million barrels a day in 2010, up 1.7%, or 1.4 million barrels a day higher than 2009.
In the currency market on Friday, the dollar index, which weighs the strength of dollar against the basket of six other currencies rose by almost 0.7%.
Most of Indian ADRs ended lower on Friday. VSNL, Rediff.com, and ICICI bank was the main losers shedding 2.23%, 1.7% and 1.4% respectively. Wipro Technologies and WNS Technologies each gained around 0.4%.
Earnings reports will start to pick up next week. Quite a few Dow components are slated to report their earnings including IBM, Mc Donald's, Bank of America, American Express and GE etc. US market will remain closed on Monday, 18 January 2010 in observance of Martin Luther King Jr. Day.
Bullion metals end week on a dull note
Prices register marginal weekly gains
Precious metal prices ended the week on Friday, 15 January 2010 on a dull note. Prices fell as the dollar turned strong as earning and economic reports failed to cheer investors at Wall Street.
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 Friday, gold for February delivery ended at $1,130.5 an ounce, lower by $12.5 (1%) an ounce on the New York Mercantile Exchange. For the week, it ended higher by 0.4%. Year to date in FY 2010, gold has risen by almost 3.3%.
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.
On Friday, March Comex silver futures ended lower by 22 cents (1.2%) at $18.43 an ounce. For the week, silver ended higher by 0.5%. Year to date in FY 2010, silver has risen by almost 10.1%.
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 Friday, the dollar index, which weighs the strength of dollar against the basket of six other currencies rose by almost 0.7%.
The Federal Reserve in US reported on Friday, 15 January, 2010 that output of the nation's factories, mines and utilities rose a seasonally adjusted 0.6% in December, 2009, the sixth increase in a row.
Separately, the Commerce Department in US reported on Friday, 15 January 2010 that its consumer price index increased 0.1% in December 2009, down from a 0.4% advance in November. This is the lowest rate since July and is slightly below expectations of a 0.2% rise.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.
Crude slips on all days of the week
Prices shed almost 6% during the week
Crude oil prices slipped once again on Friday, 15 January 2010. With Friday's drop, it ended lower on all the days of the week. Prices fell as the dollar turned strong as earning and economic reports failed to cheer investors at Wall Street.
On Friday, crude-oil futures for light sweet crude for February delivery closed at $78/barrel (lower by $1.39 or 1.8%). Crude ended the week lower by 5.7%. On a year to date basis till date, crude is lower by 2.1%.
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 47% since then. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
Paris based, IEA, left its forecasts for global oil demand for 2010 virtually unchanged in its latest monthly report. It forecasts demand of 86.3 million barrels a day in 2010, up 1.7%, or 1.4 million barrels a day higher than 2009.
In the currency market on Friday, the dollar index, which weighs the strength of dollar against the basket of six other currencies rose by almost 0.7%.
The Federal Reserve in US reported on Friday, 15 January, 2010 that output of the nation's factories, mines and utilities rose a seasonally adjusted 0.6% in December, 2009, the sixth increase in a row.
Separately, the Commerce Department in US reported on Friday, 15 January 2010 that its consumer price index increased 0.1% in December 2009, down from a 0.4% advance in November. This is the lowest rate since July and is slightly below expectations of a 0.2% rise.
The EIA reported earlier during the week that crude-oil supplies rose by 3.7 million barrels in the week ended 8 January, 2009. Market was expecting a buildup of 1.9-million-barrel increase. The report also showed that U.S. distillate inventories were up 1.4 million barrels.
Earlier during the week, in its monthly short-term outlook, EIA reported that West Texas crude-oil prices, which averaged about $62 a barrel last year, will average about $79.83 this year and about $83.5 in 2011. Prices should average $77 in the first quarter and $85 in the fourth quarter this year. The forecast assumes U.S. growth of 2% this year and 2.7% in 2011. In its December outlook, the EIA forecast that world oil consumption will grow in 2010 by 1.1 million barrels a day to put the total daily figure at 85.2 million barrels.
Also on Friday, natural gas finished higher by 10.2 cents, or 1.8%, at $5.69 per million British thermal units. Heating oil and gasoline prices fell on that day.
Copper continues to drop
Strong dollar tarnishes red metal
Base metal prices continued to drop on Friday, 15 January 2010. Prices fell as dollar headed up.
At USA, copper futures for March delivery ended lower by 1.7 cents (0.4%) to 3.337 a pound. For the week, copper ended lower by 3.5%. This year, till date, copper is lower by 1.7%. Copper ended FY 2009 higher by 140%.
At LME, copper for delivery in three months ended lower by $52 (0.7%) at $7,438. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
Copper ended substantially higher last year on expectations of revived global economic growth along with a decline in the dollar. The dollar index had dropped almost 4.2% last year. The metal was also pushed higher by record first-half imports to China, the world's largest user.
In the currency market on Friday, the dollar index, which weighs the strength of dollar against the basket of six other currencies rose by almost 0.7%.
The Federal Reserve in US reported on Friday, 15 January, 2010 that output of the nation's factories, mines and utilities rose a seasonally adjusted 0.6% in December, 2009, the sixth increase in a row.
Separately, the Commerce Department in US reported on Friday, 15 January 2010 that its consumer price index increased 0.1% in December 2009, down from a 0.4% advance in November. This is the lowest rate since July and is slightly below expectations of a 0.2% rise.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
Among other metals traded in the LME on Friday, lead ended almost unchanged to end at $2,461 a ton and zinc dropped 1.3% to end at $2,478.5 a ton. Nickel gained 0.2% to end at $18,350. Aluminium dropped 0.3% to end at $2,316 a ton.
Sensex to open gap-down
Headlines for the day
HPCL plans Rs20,000 crore refinery
ABG in talks to sell 15% stake in Great Offshore
L&T puts engineering SEZ on hold
Maruti Suzuki hikes prices of most models
Stimulus exits unlikely in the Union Budget
Events for the day
Major corporate action:
Ex-date for interim dividend of Supreme Industries Ltd
Today’s Results: Gail India, HT Media, Jaiprakash Associates, Sesa Goa, Shriram Transport, State Bank of Mysore, Sterelite Technologies & Zee Entertainment Ltd
Jubilant Foodworks IPO opens today with price band of Rs135 to Rs145 per equity shares
Pre-market report
Global signals
European Markets closed lower on Friday, as banking stock fell. FTSE 100 closed 0.78% lower at 5455.
On Friday, US markets closed lower as US Data related to consumer sentiment came below expectation. Nasdaq closed lower by 1.24% to closed at 2288.
Among the Asian indices, all the Asian indices are trading in negative territory in morning trade. At the time of writing of this report, SGX Nifty is trading 47 points lower.
Indian markets
Following the weak global markets, the domestic indices are expected to open lower and may remain volatile.
Among the local indices, the Nifty could test the 5275-5300 range on the up side, while on the down side it could find support at 5180 and 5200. While the Sensex is likely to get support at 17300 and may face resistance at 17800.
Indian ADR's
Among Indian ADRs trading on the US bourses, all the ADRs closed lower except Wipto & MTNL.
Commodity cues
In the commodity space, wherein the Crude oil prices recorded declined, with the Nymex light crude oil for February series sheds by $0.69 to settle at $77.31 a barrel.
In the metals space, Comex Gold for February series declines by $12.00 to settle at $1131.00 to a troy ounce.
In the metals space, Comex Silver for March declined by $0.22 to settle at $18.44 to a troy ounce.
Daily trend of FII/MF investment in equities
On January 15, 2010, FIIs were the net sellers of the Indian Stocks in the tune of Rs136.40 crore (with the gross purchase of Rs3602.40 crore and gross sales of Rs3738.80 crore).
While the Domestic mutual funds, on January 14, 2010, were the net buyers of the stocks in the tune of Rs193.30 crore (with gross purchase of Rs1147.90 crore and gross sales of Rs954.60 crore).
Cinemax India
Investors with medium-term perspective can consider buying the stock of Cinemax India (Rs 76).
The company operates one of the largest exhibition theatre chains in India with 25 properties with 74 screens. The stock's downtrend since its listing in February 2007 was arrested at the March 2009 low of Rs 24.3. Both medium- and short-term trends are up for the stock.
However, recently it encountered resistance at Rs 80 and is currently pausing at this level. The medium- term uptrend is likely to accelerate once this level is crossed. The stock is trading well above the 21- and 50-day moving averages.
The daily and weekly relative strength indices are featuring in the bullish zone, reinforcing the medium-term bullish momentum.
Besides, the daily as well as weekly moving average convergence and divergence indicators are steadily rising in the positive territory. Taking into consideration that the intermediate-term uptrend line is in tact for the stock, we are bullish from a medium-term horizon.
We believe that the stock has the prospect of trending higher until it knocks our medium-term price target of Rs 100, with minor pause at around Rs 86. Investors can make use of dips to accumulate the stock while maintaining Rs 64 as medium-term stop-loss.
Follow up – Jyoti Structures (Rs 195.1)
The stock has gained Rs 11 from our recommend price level last week and is heading towards our short-term price target. We maintain our bullish short- and medium-term outlook for the stock. Investors can buy this stock with the targets and stop-loss indicated in the preceding week.
via BL
Daily News Roundup - Jan 18 2010
Lyondell creditors want audit of Reliance Industries bid appraisal. (ET)
Tata Motors reported an 84% jump in its global sales at 74,707 units for December 2008, compared to the corresponding month in 2008. (ET)
Suzlon Wind Energy, the international business arm of Suzlon Energy, has received its first order of Rs250mn from Sweden for setting up 4.2MW turbines. (BL)
Cabinet Committee on Economic Affairs will soon take up the Steel Ministry's proposal to offload 10% stake in SAIL. (BL)
Mundra Port and SEZ will invest at least Rs10bn in the first phase of development of non-LNG port facilities at Hazira in Surat district of Gujarat, and commission the port in 2012. (BL)
L&T, Reliance ADAG and GMR are among the eight bidders who have filed qualification documents for the Rs121bn Hyderabad Metro Rail. (BL)
ONGC Videsh gets Cabinet panel nod to invest in Nigerian blocks. (BL)
DLF plans to exit from its mutual fund venture DLF Pramerica mutual fund by selling its entire stake to the overseas partner, the us-based prudential financial. (ET)
Suzlon in talks with lenders to recast Rs86.5bn debt. (ET)
Shree Renuka Sugars is in the race to acquire a majority stake in Brazil’s Equipav Group for an estimated US$300mn. (TOI)
Reliance Infratel, a subsidiary of Reliance Communications, has received the SEBI nod to go ahead with its public issue. (BL)
L&T decides to put its heavy engineering SEZ near Surat on hold. (BS)
NMDC is in talks with ArcelorMittal for a possible joint venture. (DNA)
Power Grid Corp. might raise US$1bn through bonds next fiscal, to develop the transmission network of Tilaiya UMPP. (DNA)
Bharat Forge board approved raising US$150mn through equity-cum-debt issue for expansion into non-automotive areas like power and oil and gas. (ET)
Maruti Suzuki announced a marginal increase of up to 2% in prices. (BS)
HCC says ICICI Bank has invested Rs2.5bn in its subsidiary, Lavasa. (FE)
SpiceJet is mulling various fund-raising options to fuel its expansion plans. (ET)
Dalmia Cement is planning to raise Rs12bn by equity sale to part finance its plans to double capacity in four years. (ET)
Apollo Tyres expects its Chennai facility to start commercial production of truck, bus and passenger car radial tyres beginning February-March this year. (BL)
The Bombay High Court refused to grant interim relief to Kingfisher Airlines, which sought stay on a preliminary inquiry ordered against it by the Competition Commission of India (CCI). (ET)
Jindal Stainless is planning to come out with rights or GDR issue with a size range of Rs3 to 5bn. (BS)
NTPC-NPCIL may get nod for nuke plant in 2-3 months. (BS)
PE firm 2i Capital sold 3% stake in Pipavav Shipyard for Rs1.1bn. (ET)
Wockhardt-Abbot deal gets high court go-ahead. (BS)
Crompton Greaves plans to buy companies to expand the company and add capacity. (BS)
IOC’s US$500mn five-year bond issue gets subscription of 13 times. (BS)
Dabur Ltd plans to re-expand its pharma research. (BS)
ABG Shipyard has acquired more than 15.23% stake in Great Offshore for Rs2.94bn through open offer route. (ET)
Hindustan Copper has decided to walk out of a pact with National Aluminium Co to jointly develop its Banwas copper mine in Rajasthan. (DNA)
Pyramid Saimira has moved the Securities Appellate Tribunal against SEBI's order which banned the company in November 2009 from trading in the Indian securities market for seven years. (BS)
Engineers India follow-on offer may hit market in July. (BL)
Reliance Retail to acquire three brands from Henkel India, namely Aramusk and Moloy soaps and Mahabringol hair oil. (ET)
Ruchi Soya Industries, one of the leading edible oil processors, announced a major farm land acquisition in Ethiopia for soybean cultivation. (BL)
BSNL floats tender for dedicated defence network. (BS)
Anil Ambani plans a takeover of the Metro-Goldwyn-Meyer Hollywood studio. (BS)
Cement dispatches in December stood at 17.74mn tons, recording the highest sequential growth rate at 12.78%, whereas on the year-on-year basis, the growth was in double digits at 10.8%. (BS)
Foreign exchange reserves rose US$741mn during the week ended January 8 to US$284.3bn. (ET)
SEBI sends proposal to Finance Minister, wants STT cut by a third. (ET)
The Maharashtra government has decided to extend its policy of selling sugar at a subsidised rate of Rs20 per kg even to people above poverty line (APL) for another three months. (ET)
To ensure competition in the third generation mobile segment, DoT is likely to impose a ban on mergers between operators who win the auction to be held later this year. (BL)
Union Government has decided to limit the number of Ultra Mega Power Projects awarded to a single company to a maximum of three projects. (BL)
Oil firms may get Rs120bn compensation from Finance Ministry. (BL)
Cargo traffic at major ports up 5% in April-Dec '09. (BL)
After two months of price cuts, the state-run oil companies hiked ATF price by 6.5% in step with hardening international rates. (TOI)
DoT may halve 3G auction slots to two. (TOI)
Union steel minister says Central government wants to discourage export of iron ore to promote export of value addition and finished products. (DNA)
3G winning bid to be new base price for spectrum. (Mint)
CERC has issued new regulations fixing trading margins for inter-state trading in electricity. (Mint)
Doubts and faith
Doubt is a feeling too lonely to know that faith is its twin.
The quarterly numbers so far give faith that companies have done well not just by cutting costs but also by improving sales. Even as most numbers have beaten street expectations, skeptics have their doubts; they would rather wait till many more numbers are seen. The result season will switch into a higher gear even as the market awaits the RBI’s policy action.
Inflation has jumped quite a bit in recent times, especially on the food front. Though monetary policy has no direct impact on prices, the RBI is under pressure to reign in inflation expectations. A CRR hike has been discounted while a rate hike will definitely surprise the markets.
Today we expect a soft opening as most global markets are in the red. The sluggish market provides an opportunity to get out of weak counters and enter relatively stronger ones. Medium to long term outlook for India is upbeat. Immediate support for the Nifty is likely to kick in at 5180-5200. Below that the levels to watch are 5150 and 5100. On the way up, the Nifty may continue to find resistance at around 5300.
On the global front too, corporate results have started coming in and could have a bearing on sentiment in case of any nasty surprises. US stocks fell by 1% on Friday despite good results by JP Morgan Chase and Intel. In fact, Wall Street suffered its worst one-day fall in 2010. US markets are shut today on account of Martin Luther King Jr. day holiday.
European shares came under pressure after Societe Generale warned of further write-offs. Asian stock markets are mostly lower this morning, dragged by Friday's weakness on Wall Street, and with Tokyo suffering from yen strength.
Results Today: Gail India, HT Media, IL&FS Investment Managers, Infotech Enterprise, Jaiprakash Associates, Sesa Goa, Shriram Transport, Sterlite Technologies and Zee Entertainment.
FIIs were net sellers in the cash segment on Friday at Rs9.3bn on a provisional basis. The local funds were net buyers of Rs6.8bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs7.09bn. As per the SEBI figures, FIIs were net sellers of Rs1.36bn in the cash segment on Thursday.
US stocks ended lower on Friday, sending the Standard & Poor’s 500 Index to its biggest drop in a month, after JPMorgan Chase came out with weaker-than-expected revenue and a glum outlook. Shares of the second-largest US bank fell 2%, spreading pessimism to the rest of the sector, after it increased provisions for credit losses.
In addition, a consumer confidence report trailed forecasts and a stronger dollar weighed on commodity prices. A reading on consumer price inflation (CPI) was largely benign and a report on manufacturing was mostly in-line with estimates.
The S&P 500 lost 1.1% to 1,136.03 in New York, the biggest drop since Dec. 17. The Dow Jones Industrial Average tumbled 100.9 points, or 0.9%, to 10,609.65. The Nasdaq Composite index lost 29 points or 1.2%, to 2,287.99.
It was the worst daily performance by US stocks of 2010 so far.
About four stocks fell for each that gained on the New York Stock Exchange (NYSE).
US stocks managed gains on Thursday, with the Dow and the S&P 500 closing at the highest point since Oct. 1, 2008. The Nasdaq ended at the highest point since Sept. 3, 2008.
Gains so far this year have been slow for US stocks, following last year's spectacular rally. The Dow gained 19% in 2009, while the S&P 500 rose 23% and the Nasdaq advanced 44%. Stocks are likely to remain sideways as investors await more quarterly earnings and economic reports.
JP Morgan Chase reported a better-than-expected quarterly profit of US$3.3bn, trouncing estimates. But revenue missed forecasts, and its credit costs too remains high. It also set aside nearly US$2bn to cover consumer-loan losses. The bank's credit card write-offs were bigger than what Wall Street was expecting.
With unemployment still pretty high for now and the likelihood of a rate hike by the Federal Reserve at some point this year, investors are wondering if the credit losses are going to get worse for US banks going forward.
JP Morgan CEO James Dimon warned that the banking giant is cautious about the future, noting that consumer credit costs remain high, and weak employment and home prices persist. That message was the opposite of what traders have been hoping to hear since the start of the fourth-quarter reporting season.
The broad bank sector tumbled, with the KBW Bank index falling 2.2%.
Intel's better-than-expected fourth quarter results have some indications that high-tech demand on the corporate side may be making a comeback.
The Dow component reported quarterly results after the close of trade on Thursday. The chip giant said that it earned 40 cents per share in the fourth quarter on sales of US$10.6bn. Both earnings and sales beat estimates and marked a sharp improvement from the previous year. But shares slipped 3% on Friday.
However, analysts and investors are wondering whether there is still more room for the stock to climb after its most profitable quarter in history.
Johnson & Johnson slid 0.8% after the world’s largest maker of health-care products expanded its recall of items possibly tainted with a wood chemical to include Rolaids, Motrin, Children’s Tylenol and St. Joseph’s Aspirin.
Separately, the US said today in a lawsuit that Johnson & Johnson paid kickbacks to Omnicare Inc. to push prescriptions for its antipsychotic drug Risperdal for elderly patients.
Kraft Foods had the biggest gain in the Dow, rising 1.6%. William Ackman’s Pershing Square Capital Management LP bought a 2% stake in the food company and is urging management to pursue a bid for Cadbury Plc that minimizes the stock component of the offer.
In the day's economic reports, the University of Michigan's consumer sentiment index rose to 72.8 in January from 72.5 in December. Economists had forecast a rise to 74.
CPI, a key measure of inflation, rose 0.1% in December versus forecasts for a rise of 0.2%. CPI rose 0.4% in the previous month. The so-called core CPI, which strips out volatile food and energy prices, rose 0.1%, meeting estimates. Core CPI was flat in the previous month.
Another report, the Empire Manufacturing index, showed that manufacturing activity in the New York area bounced back in December, rising to 15.9 from a revised 4.5 in the previous month. Economists thought it would climb to 12.
Industrial production in the US rose in December for the fifth time in past six months, propelled by a jump in utility use as temperatures turned unseasonably cold. Output at factories, mines and utilities climbed 0.6% for a second month, matching the median forecast of economists, figures from the Federal Reserve showed.
Manufacturing dropped 0.1% as losses in auto and mineral production overshadowed gains in business equipment.
Economists at JP Morgan raised their forecast for growth in US gross domestic product (GDP) for the fourth quarter to 5.7% from 4.5%. They anticipate that the world’s largest economy will grow at a 3% annual pace in the first three months of 2010.
The dollar gained versus the euro and fell versus the yen.
COMEX gold for February delivery fell US$12.50 to settle at US$1,130.50 an ounce. Gold closed at an all-time high of US$1,218.30 an ounce last month.
US light crude oil for February delivery fell US$1.39 to settle at US$78 a barrel on the New York Mercantile Exchange.
Treasury prices rallied in a classic bid-to-quality play, lowering the yield on the 10-year note to 3.67% from 3.73% late on Thursday.
The US market will be closed on Jan. 18 for Martin Luther King Jr. Day.
Friday's decline erased a weekly gain for the S&P 500 and left the benchmark index for US stocks down 0.8% over the last week. The index has surged 68% since March 9, closing at a 15-month high on Thursday.
CPI numbers gave an indication that the US economy is growing without stoking inflation. That means interest rates won’t be raised any time soon. But Wall Street still wants to see a classic corporate sales growth. If that doesn’t happen, it could turn out to be a big headwind for stocks.
While investors have welcomed improving corporate bottom lines in the last few quarters, improvements in revenue have been hard to come by. Market participants have concerns about valuations of the market as a whole following last year's huge run-up.
It is the start of two peak weeks of earnings, according to Thomson Reuters. By the end of it, investors should have a far better idea of whether companies are able to deliver expectations built into the steep rebound in stock prices since early March.
Some sign of increasing revenues will act as a breath of fresh air. Earnings are generally expected to show a fantastic recovery from the hard-hit fourth quarter of 2008. That is particularly true for banks.
In the week ahead, investors will get a new round of data on the housing sector in the form of housing starts and a homebuilders sentiment index. The Philadelphia Fed's January report on manufacturing in the mid-Atlantic region is expected to show a drop from the prior month.
Results from big banks, Google, and bellwethers such as GE will help determine if markets find a smoother path next week.
European shares finished lower on Friday due to profit booking after a cautious start to the US fourth-quarter earnings season. The pan-European Dow Jones Stoxx index lost 1.1% to 256.12, bringing weekly losses to 1.2%.
Germany's DAX index declined 1.9% to 5,875.97, the French CAC-40 index fell 1.5% to 3,954.38 and the UK's FTSE 100 index shed 0.8% to 5,455.37.
Key indices continued to trade in a narrow range this week despite Infosys’ stellar results and strong IIP numbers. Meanwhile, India’s inflation stood at 7.31% for December 2009 as compared to 4.78% for the previous month, putting pressure on RBI to suck out excess money from the system to control prices. Finally, the BSE 30-share Sensex ended flat at 17,554 and NSE Nifty also ended unchanged at 5,252 over the week.
On Friday, the BSE Sensex was down 31 points to end at 17,554 after touching a high of 17,639 and a low of 17,529. The Nifty was down 9 points to end at 5,252.
Equity markets in Asia ended mixed. The Nikkei in Japan was up 0.7%, while Australia's S&P/ASX ended flat. The Shanghai SE Composite was flat and Hang Seng index in Hong Kong was down 0.3%.
In Europe, stocks were trading higher. The DAX in Germany was up 0.4% and the CAC 40 index in France was up 0.6%. The FTSE in the UK was up 0.3%.
Coming back to India, among the BSE sectoral indices, the Oil & Gas index was the top loser, shedding 1%, followed by the Metal index that was down 0.6% and the BSE Capital Goods index was down 0.5%. The BSE Mid-Cap index edged higher 0.3% while BSE Small-Cap index added 0.2%.
Among the 30-components of Sensex, 18 stocks ended in the negative terrain and 12 ended in the green. Hindalco, Sun Pharma, M&M, ONGC and Reliance Industries were among the top losers.
On the other hand, RCom, ACC, ITC, Tata Motors and TCS were among the top gainers.
Outside the frontline indices, the big losers in the broader market were United Spirits, REI Agro, Apollo Hosp, IRB Infra and Canara Bank. On the other hand, gainers included Hindustan Copper, NMDC, RCF and UCO Bank.
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