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Friday, January 22, 2010
Mkt will look to `language` of Policy Review statement
``All eyes are on the RBI Policy Review scheduled for Friday 29 January. While the market turns apprehensive prior to any RBI Policy Review, the period prior to the Review this time is all the more significant as there are expectations of rate action from RBI. This run-up period to the Review is slightly different from the earlier ones, in that while there are apprehensions of rate hike (s), yield levels have actually eased this week. The background to this is that the market had already discounted the possibility of rate hike (s); in fact in December, there were rumours of an impending CRR hike. This week, sentiments have improved due to the reasons discussed above,`` said Joydeep Sen, VP, Advisory Desk (Fixed Income) BNP Paribas Wealth while opining on the trends of equity market for the coming week (Jan.25 - Jan.29, 2010).
``On the expectation of rate action in the Policy Review, the possibility of a CRR hike of 50 basis points has been strongly discounted and some liquidity control measure is due anyway. There could be an announcement on MSS in addition to CRR hike.`` he said further.
``The action being debated by the market now is whether it is the right time to signal a rate hike in the economy by hiking repo / reverse repo rates. Strong GDP and IIP growth and galloping inflation have made a case for rate hike whereas sluggish credit off take and the contribution of the stimulus packages to GDP growth make a case for delaying the rate hike to, say, April. Signal rate hike is the one variable in the Policy Review that will be keenly watched by the market. If RBI hikes it now, it would not come as a total surprise, but may be a mild negative for the market as consensus is yet to be developed.``
``Market will also look to the `language` of the Policy Review statement i.e. the hints given on the future course of action on rate hikes and targets on economic parameters like inflation, growth, M3, etc.`` he added.
Rupee declines again
Ends at 46.15/16 per dollar
Rupee fell for a fourth day on Friday (22 January 2010), but pulled back from a two-week low struck early as exporters cashed in their dollars in the belief the drop was overdone.
Rupee ended 0.2% weaker at 46.15/16 per dollar from previous day's 46.04/05. The unit fell as low as 46.2750 in early deals, its lowest since 5 January 2010.
Nifty January 2010 futures at a steep discount
Turnover rises
Nifty January 2010 futures were at 5013.90, at a discount of 22.10 points as compared to the spot closing of 5036. Turnover in NSE's futures & options (F&O) segment soared to Rs 1,32,392.09 crore from Rs 1,11,117.17 crore on Thursday, 21 January 2010.
Tata Steel January 2010 futures were at discount at 617.40 compared to the spot closing of 621.10.
Reliance Industries January 2010 futures were near spot price at 1050.15 compared to the spot closing of 1051.70.
Larsen & Toubro January 2010 futures were at premium at 1470.60 compared to the spot closing of 1467.25.
In the cash market, the S&P CNX Nifty lost 58.15 points or 1.14% at 5036.
Asian markets wrap-up woeful week weaker
Nikkei led the regional losses as Sensex, Sydney, Seoul, Shanghai follows them
Stock market in Asian region fell Friday, 22 January 2010, as concerns over proposed U.S. banking curbs and the prospect of China rolling out more measures to cool its economy triggered broad losses. Investors followed the lead of the Dow Jones index, which suffered its worst fall of the year after Obama said he wanted to put limits on banks to avoid a repeat of the financial crisis that tore into the world’s economies.
On Wall Street, blue-chip stocks suffered a second day of triple-digit losses Thursday after President Obama announced sweeping new curbs on big banks. The Dow Jones Industrial Average stumbled by 213 points, or 2%, to 10,390. The S&P 500 dropped 22 points, or 1.9%, at 1116, and the Nasdaq declined by 26 points, or 1.1%, at 2266.
In the commodity market, crude oil fell below $76 a barrel in New York, poised for a second weekly decline, after a U.S. government report showed refineries in the biggest energy consumer slashed processing in response to lower fuel demand.
Crude oil dropped for a third day after the Energy Department said refineries operated at 78.4% of capacity last week, the lowest rate outside the Atlantic hurricane season since at least 1989. Gasoline stockpiles climbed to the highest level since March 2008. Fuel consumption in the past four weeks was down 1.8% from a year earlier.
Crude oil for March delivery declined as much as 46 cents, or 0.6%, to $75.62 a barrel in electronic trading on the New York Mercantile Exchange. It was at $76.37 at 10:14 a.m. London time. Yesterday, the contract lost 2.1% to $76.08, the lowest settlement since 22 December 2009.
Brent crude oil for March settlement fell as much as 30 cents, or 0.4%, to $74.28 a barrel on the London-based ICE Futures Europe exchange, and was at $74.98 at 10:14 a.m. London time. Yesterday, it declined 2.3% to $74.58, the lowest settlement since 22 December 2009.
Gold, trading was little changed in London trading, as it is poised for its biggest weekly decline in six as the dollar’s rebound curbed investor demand for the precious metal as an alternative investment. Bullion for immediate delivery traded at $1,097.20 an ounce at 10:14 a.m. in London.
In the currency market, the U.S. dollar was trading off its early lows near the end of the Asian session Friday, regaining some ground after initial losses though still smarting from the aftermath of the U.S. President’s new plans to regulate U.S. banks.
The Japanese yen strengthened against major currencies on Friday. Japan’s currency was quoted at 89.97 per US dollar on Friday from yesterday quote at Y90.34 per dollar in New York.
The Hong Kong dollar was trading at HK$ 7.7730 against the dollar. Actually the Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
In Sydney trades, the Australian dollar was stuck near three-week lows on Friday as investors fled riskier trades and higher-yielding currencies, unwinding leveraged positions funded mainly in yen. At the local close, the dollar was trading at $US0.9031, having shed over a cent overnight and almost 2% for the week.
In Wellington trades, the New Zealand dollar fell to multi-week lows against a range of currencies today after United States President Barack Obama proposed the biggest regulatory crackdown on banks since the 1930s. The NZ dollar traded just below US 71 cents, it’s lowest since 29 December 2009, before settling at US 71.30 cents at 5 pm from US 72.09 cents at the same time yesterday.
The South Korean won closed at 1151 won to the greenback, down from Thursday 1137.10 won.
The Taiwan dollar weakened against the greenback. The Taiwan dollar was trading lower against the US dollar at NT$ 31.9640, 0.0450 down from Thursday’s close of NT$31.9190.
In equities, Asian markets tumbled as concerns over proposed U.S. banking curbs and the prospect of China rolling out more measures to cool its economy triggered broad losses, with financials and metal shares hit especially hard.
In Japan, the share market benchmark Nikkei Average stumbled with broad based slumps across the sectors, triggered by the proposed banking limits by the White House and the prospect of China rolling out more measures to cool the economy. Losses were heavy and widespread with the oil developers and trading houses being the most heavily sold. The Nikkei Average sank 3.6% or 391.55 points in a week.
At the end of Friday trade, the Nikkei 225 Stock Average index was at 10,590.55, dropped 277.86 points or 2.56%, while the broader Topix of all First Section issues on the Tokyo Stock Exchange fell 15.09 points, or 1.58%, to 940.94.
On the economic front, Japan's nationwide supermarket sales on an annual basis fell below the 13 trillion yen thresholds for the first time in 21 years, according data released Friday by the Japan Chain Stores Association
In Mainland China, the stock index dropped after hitting an one month intraday low of 3,062.6 in morning low on the back of the slide in commodity prices and overseas market losses and on concern the government will raise interest rates to cool the world’s fastest-growing major economy. Lower commodity prices due to strength greenback dampen commodity and resources stocks. Energy stock also lost ground following the weakness in the oil price. Properties were sluggish on prospect of China rolling out more measures to cool the economy. The index has lost 3 percent or 95.57 points this week.
At the end of Friday’s trade, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, dropped 30.27 points, or 0.96%, to 3,128.59, while the Shenzhen Component Index on the smaller Shenzhen Stock Exchange dived 321.22 points, or 2.49%, to 12,595.94. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, dropped 1.24%, to 3,366.20.
In Hong Kong, the stock market tumbled to three month closing low following tumbles in surrounding markets on falling commodities and fears of more monetary tightening in China. Although, most of morning declines were pared back on late hour bargain hunting triggered by late recovery in the Shanghai market on hope recent sell off turned stocks valuation attractive.
At the end of Friday session, the Hang Seng Index dropped 136.49 points, or 0.65%, to 20,726.18, while the Hang Seng China Enterprise, which tracks the overall performance of 43 Mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, recouped 17.82 points, or 0.15%, to 11,975.92.
In Australia, the shares fell sharply with benchmark All Ordinaries tumbled as investor risk appetite hurt by a proposed overhaul of the US banking sector, which sent New York shares tumbling overnight, while a falling commodities prices hammered materials and resources. Energy stock also lost ground following the weakness in the oil price. The proposed banking limits by the White House hurt financial stocks. The All Ordinaries registered weekly declines of 3.2% or 157.60 points. At the closing bell, the benchmark S&P/ASX200 index dropped 76.60 points, or 1.59%, to 4,750.60, meanwhile the broader All Ordinaries dived 77.70 points, or 1.60%, to 4,771.90.
In New Zealand, stock market dropped sharply on the last trading day of the week in line with most of the Asian markets that faltered after a strong decline on the Wall Street overnight. Share prices had dropped sharply overseas as US President Barack Obama took a tough stance on financial institutions, proposing rules to make the system safer by preventing the biggest banks from taking excessive risks. He said he was ready to fight the financial sector and its lobbyists for rules that would bar banks from owning, sponsoring or investing in hedge funds or private equity funds for their own profit, causing a bank share sell-off.
At the closing today, the NZX 50 lost 1.09% or 34.86 points to 3190.43. Meanwhile, the NZX 15 declined by 1.17% or 67.45 points to close at 5748.20.
In South Korea, stocks closed lower on strong foreign and institutional selling sparked by overnight fall on Wall Street. The benchmark Korea Composite Stock Price Index (KOSPI) plunged 37.66 points to 1,684.35.
In Singapore, the share market melted as equities and commodities sold-off across the market on US plans to curb excessive risk-taking by banks and concerns over Chinese monetary tightening. The blue chip Straits Times Index was at 2,819.71, slipped 31.27 points or 1.1%.
In Taiwan, stock market fell for fifth straight session taking the index to one-month closing low, as financial shares witnesses a selling spree after the United States proposed tough restrictions on banks that could squeeze profits. U.S. President Barrack Obama threatened to fight Wall Street banks on Thursday with a new proposal to limit financial risk taking, sending stocks and the dollar tumbling. Construction and technology stocks also lost ground as investors feared that the new restrictions could cause consumers to pull back on spending and hit corporate earnings.
The benchmark Taiex share index extended loses to fifth session, as the index finished tumbled by 200.56 points or 2.47% at 7927.31, the lowest closing since 23 December 2009 when market finished at 7901.50. The index also registered its biggest one day percentage fall since 27 November 2009.
In Philippines, the stock market closed the week in the negative territory following the Asian equities, as investors became vigilant after US president Barack Obama proposed tough new restrictions on banks, curbing investors' appetite for riskier assets. The downward moves echoed those on Wall Street flustered the PSEi, which plummeted more than 2%. Sustained selling in financials and industrials hurt the sentiments, keeping the selling pressure on ahead of the weekends. At the concluding bell, the benchmark index PSEi lost 2.01% or 62.11 points to 3,023.47, while the All Shares index tumbled 1.27% or 24.56 points to 1,906.89.
In India, the key benchmark indices ended a volatile trading session lower after US President Barack Obama proposed limiting risk-taking at US banks.The BSE 30-share Sensex was down 191.46 points or 1.12% to 16,859.68. The S&P CNX Nifty was down 58.15 points or 1.14% to 5036.
Elsewhere, Malaysia’s Kula Lumpur Composite index finished slightly lower at 1300.45 while stock markets in Indonesia’s Jakarta Composite index fell by 28.04 points ending the day higher at 2610.34.
In other regional markets, European shares Friday extended steep losses made in the previous session as the threat of profit-hindering regulation continued to drive investors away from the banking sector. On a regional level, the U.K. FTSE 100 index declined 0.1% to 5,331.79, the German DAX index declined 0.4% or 23.81 points to 5,723 and the French CAC-40 index declined 0.3% or 12.65 points to 3,850.
Aqua Logistics IPO Review
Asset light, but working capital heavy
Due to large and rising debtors and loans & advances, the company has not seen positive operating cash flow in the last five fiscals
Aqua Logistics (AL), promoted by Gopalkrishana Uchil, Rajesh G Uchil, Harish G Uchil and M S Sayad, is a full scope third party logistics service provider offering end to end solutions in the logistics and supply chain domain.
Started in 1999 as a freight forwarding company, AL has consistently increased its capabilities and scope of services. Turning itself into a multimodal transport operator in January 2001, it bagged its first project logistics order from ABB in 2003. It has acquired Rajesh G Uchil & Co, the partnership firm of Rajesh G Uchil, the promoter.
The scope of services now includes multimodal transportation, contract logistics, regulatory compliance, warehousing, value added services and project logistics. The revenue stream of the company comprises income from freight logistics, contract logistics and project logistics. Of the three, about 91.6% of the revenue came from freight forwarding/logistics in the fiscal ended March 2009 (FY 2009) with contract logistics (2.9%) and project logistics (5.5%) accounting for the balance. The company over the years has build up capabilities in meeting special logistics needs of industry verticals such as power, heavy engineering, pharmaceutical, telecom, retail, sports and events. The company has wide presence across the country covering all the major cities of the country such as Mumbai, Chennai, Delhi, Bangalore, Ludhiana, Baroda, Cochin and Pune. International operations are supported by third-party logistics (3PL) partners and vendors. They enable servicing clients in India and abroad.
The object of the issue is to raise funds to finance its future plans of 1) purchase of specialized equipment for project logistics business (Rs 30.52 crore); 2) expansion/ establishment of offices (Rs 17.11 crore); 3) inorganic expansion/ acquisitions (Rs 35 crore); and 4) additional working capital requirements (Rs 45 crore). The balance is for general corporate purposes as well as public issue expenses.
Strengths
Backed by experienced management team, the company is consistently moving up the value chain and has been building capabilities across the logistics value chain. Strong relationship with international as well as domestic logistic players will help the company to tap the growing logistics market in the country with lower investments. The Indian logistics sector, though impacted by slowdown, has shown strong resilience, especially the domestic cargo segment, unlike exim cargo. With the industrial sector bouncing back, logistic demand too is growing strongly.
The company services multiple industry verticals namely power, heavy engineering, pharmaceutical, telecom, retail, sports and events. Moreover, the top five clients of the company contributed just 30% and the top 10 clients account for about 37.7% of the revenue of the company. Hence, any downturn in any one of the verticals or loss of a clientele will not impact the operation of the company much.
On December 22, 2009, the company entered into a Memorandum of Understanding (MoU) with Enkorr Powergen to provide end to end project logistics service comprising the entire range of advisory consultancy and execution for the 3X4000 MW UMPP coal based thermal power plant one each in Tamil Nadu, Andhra Pradesh and Gujarat. The conclusion of the firm contract will provide strong traction to revenue as well as profitability given the high margin nature of the logistic business compared to freight forwarding business.
Weaknesses
The company follows asset light model and does not have its own fleet of equipment or any other logistics infrastructure. A tender driven business such as project logistics warrants owning of certain critical equipments as one of prequalification criteria and not owning equipment fleet will be a hurdle in expanding the project logistics business.
Aqua Specialized Transport, a promoter group company, is currently in the business of transportation, loading of goods, materials or other things in any form. Moreover, some of the promoter group companies, i.e., Aqua Management Consulting Group, Lefworld Private and Aqua PCW have objects similar to the business of the company. As of now these group companies are not competing against the company but helping the company in offering end to end logistics service. While the Aqua Management Consulting Group offers supply chain consultations, the Aqua Specialized Transport offers last mile project execution and specialized transport. This might lead to clash of interest and may affect the profitability of the company. Moreover, the company does not have any non-compete agreements/ arrangement with any of the promoter group entities as of now. This gives freedom to promoter group companies to carry out business on their own and compete against AL.
The logistic industry is highly fragmented with lot of unorganized players as well as organized players especially in transportation and freight forwarding. This is likely to result in aggressive pricing, especially in a downturn, for a slice of business affecting the profitability of the company.
The company has not seen positive operating cash flow in the last five fiscals. For FY 2009, the company had negative cash flow from operating activities amounting Rs 23.84 crore on account of increase in debtors as well as loans and advances. While the sundry debtors have spiked by 82% to Rs 59.73 crore, loans and advances surged by 224% to Rs 23.97 crore during this period.
Valuation
Sales of the company increased by 96% to Rs 213.40 crore for the fiscal ended March 2009 and net profit was higher by 75% to Rs 9.84 crore. At the offer price band of Rs 220-230, the post issue equity capital of the company works out to 20.44 crore at the lower price band and Rs 20.15 crore at the upper price band. Consequently, the EPS at the lower price band was Rs 5.2 and at the upper price band it was Rs 5.3 for FY 2009. Resultantly, the P/E works out to 42.3-43.4 times on the offer price band of Rs 220-230. Comparatively, Arshiya International and Gateway Distripark are available at a PE of 18 times and 19.1 times their FY 2009 consolidated earning. Even on first-half annualized EPS of Rs 9.1-9.2 on post-IPO equity, AL's P/E works out to 24.2-25.
Bears act in concert
Today's major news
Reliance Industries’ Q3 net up 16%; the stock closes 0.06% lower
ITC’ Q3 net sales brew by 18.7%; the stock jumps 2.13%
Allahabad Bank’s Q3 net down by 6.5%; the stock ends the day 1.5% lower
Fortis Healthcare’s Q3 net profit at Rs12.40 crore; the stock rises 1.97%
HCC’ Q3 net down 36%; the stock slides 5.09%
Click here for more stories
Post-market summary
Global signals
European indices traded marginally lower in morning trades, as banking stocks slid. At the time of writing this report FTSE 100 was trading marginally 0.09% lower.
All Asian markets closed in red. Nikkei closed 2.56% lower while the SGX Nifty closed 85 points down.
US stock futures opened marginally higher on Friday.
Indian indices
Pessimistic cues from overseas markets saw the Sensex open 73 points lower to breach 17000 level mark and extend its losses and touch the day’s low of 16608. However, better-than-expected Q3 numbers by Reliance Industries helped the Sensex to recoup some of losses and touch the day’s high of 17000. Of the Sensex’ pack, only three scrips closed higher. The index ended the Sensex 191 points lower. Nifty also broke 5000-level though at the end it closed 58 points lower.
Market sentiment
The market breadth, the number of advancing shares to declining shares, was fairly negative. Of the total 2,937 stocks traded on the BSE, 2,043 stocks declined, whereas 842 stocks advanced. Fifty-two stocks closed unchanged.
Sectoral & stock screening
Of the 13 sector indices, only BSE FMCG that surged 1.34% and BSE PSU that rose 0.36% closed positive. BSE Realty (down 1.70%), BSE IT (down 1.61%)and BSE Bankex (down 1.56%) were hit the most.
On stocks’ front, Hindustan Copper topped the chart surging by 9.99% followed by Idea Cellular (up 7.64%) and NMDC (up 7.00%). Among losers, Punj Lloyd slid the most by 6.28%, followed by IVRCL Infrastructure that fell by 5.64% and Rei Agro that shed 5.34%.
Viewing volumes
Public sector unit Rashtriya Chemicals and Fertilisers saw the highest trading with over 1.25 crore shares changing hands on the BSE, followed by wind turbine major Suzlon Energy (0.98 crore shares), India’s second biggest realty company Unitech (0.88 crore shares), Ispat Industries (0.81 crore shares) and industrial finance company IFCI (0.59 crore shares).
BSE Bulk Deals to Watch - Jan 22 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
22/1/2010 524412 Aarey Drugs PATEL SONAL KIRITBHAI B 35897 49.49
22/1/2010 524412 Aarey Drugs PATEL APEXA JAGDISHBHAI B 41546 49.32
22/1/2010 524412 Aarey Drugs THAKORLAL ATMARAM MODI S 36710 49.79
22/1/2010 524412 Aarey Drugs DAXABEN VASANTKUMAR SHAH S 35367 49.44
22/1/2010 524412 Aarey Drugs PATEL SONAL KIRITBHAI S 35897 49.46
22/1/2010 524412 Aarey Drugs PATEL APEXA JAGDISHBHAI S 41434 49.41
22/1/2010 524412 Aarey Drugs NITA BANKESH BHAVSAR S 28439 49.37
22/1/2010 532995 Avon Corp VINOD AMRATLAL NAAI S 359196 7.62
22/1/2010 505506 Axon Infotech SARALA DAS B 7170 28.05
22/1/2010 505506 Axon Infotech CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 11000 30.80
22/1/2010 505506 Axon Infotech PRAMILA NAVIN CHHEDA S 11000 30.80
22/1/2010 505506 Axon Infotech CHIMANLAL MANEKLAL SECURITIES PVT.LTD S 9302 28.05
22/1/2010 531591 Bampsl Sec SUNDERDASS AGARWAL B 717541 0.97
22/1/2010 531590 Bilpower MANSUKH SECURITIES & FINANCE LTD B 63573 199.14
22/1/2010 531590 Bilpower MANSUKH SECURITIES & FINANCE LTD S 63573 199.29
22/1/2010 505923 Ceekay Daikin MUKUND MOTOR PARTS PVT LTD S 38200 98.96
22/1/2010 505052 Clutch Auto ANGEL INFIN PRIVATE LIMITED B 81833 67.13
22/1/2010 505052 Clutch Auto ANGEL INFIN PRIVATE LIMITED S 81833 67.32
22/1/2010 531261 Concurrent India GADDIGOPULA SWARNA LATHA S 250000 9.36
22/1/2010 531261 Concurrent India SATEESH KUMAR GADDIGOPULA S 250000 9.36
22/1/2010 531261 Concurrent India ABSOLUTE LEASING & FINANCE PVT LTD S 266825 9.36
22/1/2010 511668 Fact Enterprise ANGEL INFIN PRIVATE LIMITED B 236059 25.06
22/1/2010 511668 Fact Enterprise HITESH SHASHIKANT JHAVERI B 81772 25.79
22/1/2010 511668 Fact Enterprise Naman Securities & Finance Pvt. Ltd. B 106328 25.52
22/1/2010 511668 Fact Enterprise BP FINTRADE PRIVATE LIMITED B 126960 24.92
22/1/2010 511668 Fact Enterprise ANGEL INFIN PRIVATE LIMITED S 76633 25.59
22/1/2010 511668 Fact Enterprise HITESH SHASHIKANT JHAVERI S 100330 25.22
22/1/2010 511668 Fact Enterprise XITIJ INVESTMENTS S 328475 25.62
22/1/2010 511668 Fact Enterprise BP FINTRADE PRIVATE LIMITED S 126958 24.85
22/1/2010 590024 Fert & Chem Trv TRANSGLOBAL SECURITIES LTD. B 288264 65.72
22/1/2010 590024 Fert & Chem Trv MUKESH KUMAR BACHHAWAT B 36377 66.47
22/1/2010 590024 Fert & Chem Trv ANGEL INFIN PRIVATE LIMITED B 98859 65.00
22/1/2010 590024 Fert & Chem Trv R B K SHARE BROKING LIMITED B 59257 65.12
22/1/2010 590024 Fert & Chem Trv Naman Securities & Finance Pvt. Ltd. B 36977 66.88
22/1/2010 590024 Fert & Chem Trv MACY SECURITIES PRIVATE LIMITED B 43750 65.96
22/1/2010 590024 Fert & Chem Trv LATIN MANHARLAL SEC.PVT.LTD. B 103522 67.24
22/1/2010 590024 Fert & Chem Trv JINESH ASHWIN MATALIA B 50042 67.13
22/1/2010 590024 Fert & Chem Trv WALLFORT FINANCIAL SERVICES LTD B 35000 69.71
22/1/2010 590024 Fert & Chem Trv A.A.DOSHI SHARE & STOCK BROKERS LTD B 52749 67.77
22/1/2010 590024 Fert & Chem Trv BP FINTRADE PRIVATE LIMITED B 34527 67.44
22/1/2010 590024 Fert & Chem Trv TRANSGLOBAL SECURITIES LTD. S 288764 65.63
22/1/2010 590024 Fert & Chem Trv MUKESH KUMAR BACHHAWAT S 36377 67.07
22/1/2010 590024 Fert & Chem Trv ANGEL INFIN PRIVATE LIMITED S 103859 65.10
22/1/2010 590024 Fert & Chem Trv R B K SHARE BROKING LIMITED S 59257 64.87
22/1/2010 590024 Fert & Chem Trv Naman Securities & Finance Pvt. Ltd. S 41477 66.75
22/1/2010 590024 Fert & Chem Trv MACY SECURITIES PRIVATE LIMITED S 50750 66.45
22/1/2010 590024 Fert & Chem Trv LATIN MANHARLAL SEC.PVT.LTD. S 99937 67.02
22/1/2010 590024 Fert & Chem Trv JINESH ASHWIN MATALIA S 40043 67.28
22/1/2010 590024 Fert & Chem Trv A.A.DOSHI SHARE & STOCK BROKERS LTD S 50749 67.94
22/1/2010 590024 Fert & Chem Trv BP FINTRADE PRIVATE LIMITED S 32916 67.12
22/1/2010 530315 Hindustan Tin SAINATH TRADING CO PVT LTD S 57849 119.55
22/1/2010 522183 ITL Inds BULBUL AHMED B 43876 55.24
22/1/2010 523467 Jai Mata Glass GROWMORE PROPERTIES PVT LTD S 80380 2.52
22/1/2010 523467 Jai Mata Glass MANSI MILAN CHOKSI S 70350 2.55
22/1/2010 524731 Jenburkt Pharma SN SHRS AND STCK BROKERS P.LTD B 26616 46.26
22/1/2010 532518 JK Agri Genetics PRASHANT SHRIMAL B 20000 214.61
22/1/2010 532518 JK Agri Genetics AASHKA CONSTRUCTION PVT LTD B 35565 219.22
22/1/2010 532518 JK Agri Genetics DHANANJAYA MONEY MANAGEMENT SERVICES PVT LTD B 39220 211.88
22/1/2010 532518 JK Agri Genetics AASHKA CONSTRUCTION PVT LTD S 35565 218.38
22/1/2010 532518 JK Agri Genetics DHANANJAYA MONEY MANAGEMENT SERVICES PVT LTD S 27780 213.11
22/1/2010 530255 KAY Power KAUSHALYA GARG B 61901 15.86
22/1/2010 530255 KAY Power BAMPSL SECURITIES LTD. B 126455 15.91
22/1/2010 530255 KAY Power ASHOK KUMAR SONI S 117950 15.31
22/1/2010 506528 Keltech Ener KANKARIA BROTHERS PVT LTD S 11520 288.16
22/1/2010 531602 Koffee Break BABULAL BHURMAL JAIN B 770000 3.10
22/1/2010 526379 Konkan Tyres SANTOSH M POL B 24000 8.87
22/1/2010 531515 Mahan Inds AMIT MANSUKHLAL SHAH B 350000 5.18
22/1/2010 531515 Mahan Inds JASMIN S BAJORIYA S 580584 5.12
22/1/2010 533152 MBL INFRA SMART EQUITY BROKERS PRIVATE LIMITED B 90525 234.44
22/1/2010 533152 MBL INFRA OPG SECURITIES P LTD B 173645 233.66
22/1/2010 533152 MBL INFRA SMART EQUITY BROKERS PRIVATE LIMITED S 90525 234.38
22/1/2010 533152 MBL INFRA OPG SECURITIES P LTD S 173645 233.79
22/1/2010 531453 Mohit Inds KALPESHBHAI VASUDEVBHAI PADHYA S 26800 22.12
22/1/2010 531832 Nagarjuna Agri Tch JAVERI FISCAL SERVICES LTD S 62200 7.89
22/1/2010 531834 Natura Hue Chem SANJEEV RAMESH MALHOTRA S 34195 47.22
22/1/2010 590090 Octant Inter ANGEL INFIN PRIVATE LIMITED B 190286 12.64
22/1/2010 590090 Octant Inter ANGEL INFIN PRIVATE LIMITED S 240286 12.77
22/1/2010 511702 Parsharti Inv KRUPA SANJAY SONI B 25559 35.15
22/1/2010 511702 Parsharti Inv KRUPA SANJAY SONI S 25532 35.47
22/1/2010 531769 PFL Infotech ROOPLATA MANAKCHAND JAIN B 25000 19.65
22/1/2010 531454 Polylink Poly SPARK SECURITIES P LTD B 93950 6.28
22/1/2010 531454 Polylink Poly LALCHAND SHARMA S 93950 6.28
22/1/2010 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA B 82661 33.58
22/1/2010 502587 Rama Pulp OMPARKASH GUPTA B 52360 32.11
22/1/2010 502587 Rama Pulp PREMIUM HOSPITALITY SERVICES PVT LTD B 100000 33.65
22/1/2010 502587 Rama Pulp GAJRIA PRECISION INDUSTRIES PVT LTD B 100000 33.65
22/1/2010 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA S 317574 33.29
22/1/2010 502587 Rama Pulp OMPARKASH GUPTA S 47360 32.95
22/1/2010 533083 RISHABHDEV BHAVISH DHIRAJLAL KHAKHKHAR B 183659 14.60
22/1/2010 533083 RISHABHDEV BHAVISH DHIRAJLAL KHAKHKHAR S 159985 14.53
22/1/2010 500285 Spicejet DAMANI ESTATES AND FINANCE PRIVATE LIMITED B 2000000 56.94
22/1/2010 531841 Subuthi Finance ARVIND SHAH B 45000 41.52
22/1/2010 531433 Sungold Cap PDPT COMMERCIAL CO PVT LTD B 56302 17.91
22/1/2010 531433 Sungold Cap VIVEKN JHAVERI S 60000 17.91
22/1/2010 531638 Suraj Stainl MUKESHR CHANDAN B 120000 72.50
22/1/2010 531638 Suraj Stainl MUKESH RAGHUNATHMAL CHANDAN HUF S 120000 72.50
22/1/2010 533121 THINKSOFT A K G STOCK BROKERS PRIVATE LIMITED B 143520 461.83
22/1/2010 533121 THINKSOFT A K G STOCK BROKERS PRIVATE LIMITED S 143520 462.40
22/1/2010 590093 TRIMURTHI DR TDPL HEALTH CARE INDIA LIMITED B 2225000 5.25
22/1/2010 590093 TRIMURTHI DR CHERALA SURESH S 2250000 5.25
22/1/2010 506808 Tuticorin Alk ROHIT KHULLAR B 76000 9.34
22/1/2010 506808 Tuticorin Alk MOHIT KHULLAR B 74673 9.35
22/1/2010 506808 Tuticorin Alk PRAKASH FINANCE PVT.LTS S 150000 9.34
22/1/2010 531831 Unisys Soft DB (INTL) OWN TRADING B 300000 20.92
22/1/2010 531831 Unisys Soft MILANDEBI PRASADMUKHERJEE S 350000 20.92
22/1/2010 531831 Unisys Soft SAROJ KOTHARI S 413325 20.92
22/1/2010 530961 Vikas Globalone DIWAKAR COMMERCIAL P LTD. B 346705 28.32
22/1/2010 530961 Vikas Globalone GAITRI DEVI S 175000 28.00
22/1/2010 530961 Vikas Globalone ASHOK KUMAR SINGHLA S 175000 28.65
22/1/2010 531249 Well Pack Papers SHOBHNABEN R PARMAR B 37083 410.65
22/1/2010 531249 Well Pack Papers PANDYA YAMINIBEN M B 57202 411.13
22/1/2010 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR B 62432 410.66
22/1/2010 531249 Well Pack Papers NAVNATH SAKHARAM GHONE B 24000 410.62
22/1/2010 531249 Well Pack Papers DHARMENDRA VISHWAKARMA B 22200 411.02
22/1/2010 531249 Well Pack Papers SHOBHNABEN R PARMAR S 25501 410.34
22/1/2010 531249 Well Pack Papers PANDYA YAMINIBEN M S 42717 410.49
22/1/2010 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR S 43892 410.37
22/1/2010 531249 Well Pack Papers SHREEDHAR YELLAIAH KODAM S 24000 410.43
22/1/2010 531249 Well Pack Papers DHARMENDRA VISHWAKARMA S 22200 410.34
* B - Buy, S - Sell
NSE Bulk Deals to Watch - Jan 22 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
22-JAN-2010,BILPOWER,Bilpower Limited,MANSUKH SECURITIES & FINANCE LIMITED,BUY,61331,199.06,-
22-JAN-2010,CLUTCHAUTO,Clutch Auto Limited,BP FINTRADE PRIVATE LIMITED,BUY,208493,67.12,-
22-JAN-2010,CLUTCHAUTO,Clutch Auto Limited,SETU SECURITIES LTD,BUY,87552,67.23,-
22-JAN-2010,ESSAROIL,Essar Oil Ltd.,LIFE INSURANCE CORPORATION OF INDIA,BUY,10000000,140.00,-
22-JAN-2010,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,6678163,20.75,-
22-JAN-2010,ITI,ITI Ltd.,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,112581,56.79,-
22-JAN-2010,ITI,ITI Ltd.,OM INVESTMENTS,BUY,200773,56.86,-
22-JAN-2010,OILCOUNTUB,Oil Country Tubular Ltd,SAFECO PROJECTS PRIVATE LIMITED,BUY,250225,107.38,-
22-JAN-2010,SAGCEM,SAGAR CEMENTS LTD,SBI FUND MANAGEMENT A/C GLOBAL FUND-021,BUY,508417,190.00,-
22-JAN-2010,SAGCEM,SAGAR CEMENTS LTD,SBI FUND MANAGEMENT A/C MAGNUM COMMA FUND-094,BUY,300000,190.00,-
22-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,166578,462.30,-
22-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,REGENT FINANCE CORPORATION PVT. LTD.,BUY,63041,469.19,-
22-JAN-2010,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1346910,19.02,-
22-JAN-2010,BILPOWER,Bilpower Limited,MANSUKH SECURITIES & FINANCE LIMITED,SELL,61331,198.96,-
22-JAN-2010,CLUTCHAUTO,Clutch Auto Limited,BP FINTRADE PRIVATE LIMITED,SELL,201521,68.08,-
22-JAN-2010,CLUTCHAUTO,Clutch Auto Limited,SETU SECURITIES LTD,SELL,82550,68.08,-
22-JAN-2010,ESSAROIL,Essar Oil Ltd.,MATTERHORN ADVISORY SINGAPORE PTE LTD - DAIVI VENTURES,SELL,22181297,140.04,-
22-JAN-2010,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,6618071,20.75,-
22-JAN-2010,ITI,ITI Ltd.,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,112581,56.96,-
22-JAN-2010,ITI,ITI Ltd.,OM INVESTMENTS,SELL,200773,56.93,-
22-JAN-2010,JAYSREETEA,Jayashree Tea Ltd.,JM FINANCIAL MUTUAL FUND,SELL,100000,366.92,-
22-JAN-2010,SAGCEM,SAGAR CEMENTS LTD,THE INDIA FUND INC,SELL,808040,190.00,-
22-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,166578,462.27,-
22-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,REGENT FINANCE CORPORATION PVT. LTD.,SELL,63041,470.16,-
22-JAN-2010,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1316187,19.01,-
Sensex falls below 17, 000 as world stocks undergo correction; L&T slumps
A sell-off in global stocks and disappointment from key corporate earnings pulled the domestic bourses sharply lower in choppy trade. Stocks fell in four out of five trading sessions of the week. The BSE Sensex fell below the psychological 17,000 mark. Global stocks tumbled after US President Barack Obama on Thursday proposed new restrictions on banks, which would prevent banks or financial institutions that own banks from investing in, owning or sponsoring a hedge fund or private equity fund.
The restrictions could limit leverage in the financial system and the role of risk-taking by hedge funds. The rules would also bar institutions from proprietary trading operations, unrelated to serving customers, for their own profit. These bets have been enormously profitable for the banks but can hold huge risks for the financial system if they go wrong.
Global markets had already recoiled in recent weeks on fears that Chinese demand would slow as Beijing taps the brakes on its roaring growth to stave off inflation and keep the economy from overheating. China had curbed lending by banks after raising banks' reserve requirement ratios (RRR) by 50 basis points earlier.
The BSE Sensex fell 694.62 points or 3.96% to 16859.68 in the week ended Friday, 22 January 2010. The S&P CNX Nifty tumbled 216.20 points or 4.11% to 5,036.
The BSE Mid-Cap index slumped 266.75 points or 3.78% to 6,783.66 in the week. The BSE Small-Cap index dipped 309.29 points or 3.45% to 8,661.17. Both the indices outperformed Sensex.
The food price index rose 16.81% in the 12 months to 9 January 2010, while the fuel index was up 6.34%, the government said on Thursday. The rise in food price index was lower than an annual rise of 17.28% in the previous week.
The annual wholesale inflation rose to 7.31% in December 2009, compared with 4.78% in November and 6.15% a year ago. Finance minister Pranab Mukherjee said on Wednesday the government was taking steps to contain inflation. The situation is constantly under review, he said. He also promised more measures to check the rise in the prices of essential commodities.
Union food and agriculture minister Sharad Pawar on Wednesday suggested that the prices of milk and related products were set to rise because of the demand-supply mismatch.
Food prices will cool off in 1-2 months and inflation will turn around, finance ministry's chief economic advisor Kaushik Basu said in a newspaper interview published on Wednesday. The Reserve Bank of India will hold its quarterly monetary policy review on 29 January 2010 and is widely expected to increase the cash reserve ratio (CRR) requirements for banks, but economists are divided on when it will raise interest rates. CRR is the level of cash that banks must keep in deposit with the central bank.
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.
The October-December 2009 quarter economic growth is expected to be lower than the previous quarter, chief statistician Pronab Sen said on Thursday, due to a contraction in farm output. Indian economy, which grew at 7.9% in the September quarter, is expected to grow 6-6.5% in the December quarter, Sen said.
He expects the Indian economy to grow at 6.5-7.5% for the fiscal year ending in March 2010. The annual farm output in the December 2009 quarter is expected to contract by 6-7%, he added. Monthly inflation may touch double digits by March 2010, Sen had said earlier this week
Economic growth will accelerate this year, Commerce and Industry Minister Anand Sharma said on Tuesday as he demanded better access to China's markets to help exports. Sharma's call for greater access for goods comes amid a widening trade gap between the two countries. Trade between the two grew rapidly to $50 billion in 2008, making China India's second-largest trading partner, but fell back to $43 billion in 2009 as global trade declined. Sharma called for more Chinese direct investment in India, especially in infrastructure, while noting that Indian firms are already present in China.
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.
Meanwhile, the government reportedly proposes to ease the norms for foreign direct investment (FDI) approval. Presently projects worth more than Rs 600 crore require the final approval of the Cabinet Committee on Economic Affairs (CCEA). The department of industrial policy and promotion (DIPP) has proposed that this ceiling be raised to anywhere between Rs 1,000 crore and Rs 1,500 crore. The new norms are likely to be notified after the introduction of a consolidated FDI policy framework on 1 April 2010.
FDI inflows increased to $27 billion in 2008-09 from $3.2 billion in 2004-05. During the period April-September 2009-10, FDI inflows reached $15 billion. The government has set a target of achieving $50 billion annual FDI by 2012 and $100 billion by 2017.
Meanwhile, the World Bank has raised its forecast for global growth in 2010 but warned that the recovery may lose momentum in the second half of the year as government stimulus programs wind down and unemployment persists. The world economy will expand 2.7% this year after the worst recession since the end of World War II, compared with an estimate in June of a 2% expansion, the Washington- based poverty-reduction agency said in an annual report. Growth may reach 3.2% in 2011, the bank said.
The market edged higher on Monday, 18 January 2010 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). The BSE 30-share Sensex rose 86.78 points or 0.49% at 17,641.08 on that day.
The key benchmark indices lost ground in choppy trade on Tuesday, 19 January 2010 as weakness in world stocks weighed on investor sentiment. Global stocks fell as investors awaited key earnings reports from the US. The BSE 30-share Sensex fell 155.02 points or 0.88% to 17,486.06 on that day.
The key benchmark indices ended a choppy trading session lower on Wednesday, 20 January 2010, extending losses for the second straight day as weak global stocks weighed on investor sentiment. The BSE 30-share Sensex fell 11.57 points or 0.07% to 17,474.49 on that day.
The market extended losses for the third straight day on Thursday, 21 January 2010 on disappointing Q3 results from frontline companies. Markets across the globe were gripped with volatility as bullish economic data from China raised concerns Beijing may tighten policy. The BSE 30-share Sensex lost 423.35 points or 2.42% to 17,051.14 on that day.
The key benchmark indices ended a volatile trading session lower on Friday, 22 January 2010 after US President Barack Obama proposed limiting risk-taking at US banks. The BSE 30-share Sensex fell 191.46 points or 1.12% lower at 16,859.68.
India's largest engineering & construction firm by sales Larsen & Toubro (L&T) slumped 10.83% in the week. The company cut its revenue growth target to 10% from 15% at the time of announcing Q3 results on Thursday. L&T said profit after tax from ordinary activities rose 15% to Rs 696 crore in Q3 December 2009 over Q3 December 2008. Gross sales revenue declined 6% to Rs 8139 crore. The result was announced during trading hours on Thursday, 21 January 2010.
India's largest power equipment maker by sales Bharat Heavy Electricals (Bhel) ended flat for the week at Rs 2372.20. The company's the net profit rose 35.67% to Rs 1072.59 crore on a 17.28% rise in total income to Rs 7422.51 crore in Q3 December 2009 over Q3 December 2008. The result was announced during trading hours on 21 January 2010.
Index heavyweight Reliance Industries (RIL) fell 5.05%. RIL's net profit rose 15.77% to Rs 4008 crore on 89.77% surge in total income to Rs 57364 crore in Q3 December 2009 over Q3 December 2008. RIL said the results had been reworked and restated to include figures from Reliance Petroleum, which it absorbed last year. The company announced the Q3 result during market hours on Friday, 22 January 2010.
RIL's gross margin from refining a barrel of crude was $5.90 a barrel in the latest quarter, compared with $10 a barrel a year earlier. The company added said it has increased production at the D6 gas block in the Krishna-Godavari basin, off India's east coast, to 60 million metric standard cubic meters per day.
India's largest oil exploration firm by sales Oil & Natural Gas Corporation dropped 8.1%. The company posted a 23% rise to Rs 3054 crore on 24% rise in net sales to Rs 15373 crore in Q3 December 2009 over Q3 December 2008. The results, which lagged street estimates, were announced after market hours on 21 January 2010.
India's largest cellular services provider by sales Bharti Airtel gained 1.26%. On consolidated basis, the company's net profit rose 13.2% to Rs 2236.90 crore on a 6.6% increase in total income to Rs 10327.57 crore in Q3 December 2009 over Q3 December 2008. The result was announced during trading hours on Friday, 22 January 2010.
India's largest cigarette maker by sales ITC fell 1.26% The company's net profit rose 26.67% to Rs 1144.17 crore in Q3 December 2009 over Q3 December 2008. The company announced Q3 result during market hours on Friday, 22 January 2010.
India's largest private sector bank by net profit ICICI Bank ended flat for the week at Rs 840.65. The bank's net profit declined 13.44% to Rs 1101.06 crore on a 25% fall in total income to Rs 7762.71 crore in Q3 December 2009 over Q3 December 2008. The result was announced during trading hours on Thursday, 21 January 2010.
Market may remain volatile ahead of F&O expiry; RBI's policy review eyed
Equities may remain volatile in a truncated week as traders roll positions in the derivative segment from January 2010 series to February 2010 series ahead of the expiry of the near-month January 2010 contracts on Thursday, 28 January 2010. The market remains closed on Tuesday, 26 January 2010, on account of Republic Day.
The Reserve Bank of India will hold its quarterly monetary policy review on 29 January 2010 and is widely expected to increase the cash reserve ratio (CRR) requirements for banks, but economists are divided on when it will raise interest rates. CRR is the level of cash that banks must keep in deposit with the central bank.
A CRR increase would have little impact on market, as investors have mostly factored in at least a 25 basis points increase in banks' reserve requirement and steady interest rates. Increases in both the CRR and interest rates could however weigh on shares of banks as well as sectors such as auto and property on concerns loan demand may slow.
Industrial output grew 11.7 % in November 2009 from a year earlier, as stimulus measures since October 2008 to overcome the global credit crunch supported domestic demand.
The widely watched wholesale price index rose an annual 7.3% in December 2009, its highest since November 2008 and accelerating from a 4.8 % rise in November 2009. Food prices rose 16.81 % in the 12 months to 9 January 2010, easing from nearly 20 % in early December.
A host of key results will be announced. Prominent amongst them are Maruti Suzuki India (on Saturday, 23 January 2010); Mahindra & Mahindra, Hero Honda Motors, Hindalco Industries, Sterlite Industries, State Bank of India (on Monday, 25 January 2010); Hindustan Unilever (on Tuesday, 26 January 2010); Steel Authority of India, DLF (on Wednesday, 27 January 2010); Tata Steel (on Thursday, 28 January 2010); Tata Motors, and Sun Pharmaceutical Industries (on Friday, 29 January 2010).
The aggregate results for 439 companies announced so far showed that net profit rose 41.4% to Rs 31011 crore on 20.2% rise in sales to Rs 249678 crore in Q3 December 2009 over Q3 December 2008.
Global developments will be closely watched by investors. US Barack Obama's proposed new restrictions on banks, which would prevent banks or financial institutions that own banks from investing in, owning or sponsoring a hedge fund or private equity fund weighed heavily on global stocks on Friday 22 January 2010. The restrictions could limit leverage in the financial system and the role of risk-taking by hedge funds. The rules would also bar institutions from proprietary trading operations, unrelated to serving customers, for their own profit. These bets have been enormously profitable for the banks but can hold huge risks for the financial system if they go wrong.
Global markets had already recoiled in recent weeks on fears that Chinese demand would slow as Beijing taps the brakes on its roaring growth to stave off inflation and keep the economy from overheating. China had curbed lending by banks after raising banks' reserve requirement ratios (RRR) by 50 basis points earlier.
Market extends losses for the fourth day; volatility to the fore
Key benchmark indices extended their losses for the fourth straight session after US President Barack Obama proposed limiting risk-taking at US banks. Volatility was the hallmark of the day. The BSE 30-share Sensex settled 191.46 points or 1.12% lower at 16,859.68, below the psychological 17,000 mark. The S&P CNX Nifty declined 58.15 points or 1.14% to 5036, regaining the psychological 5,000 mark soon after falling below that level at the onset of the trading session. Index heavyweight Reliance Industries (RIL) was volatile after the company today reported higher third quarter net profit.
Intraday volatility on the bourses was high. The market tumbled in early trade on weak global stocks. The market staged a strong intraday rebound in afternoon trade after the chief economic adviser to the finance ministry Kaushik Basu said the economy will be back at a 9% growth rate by the next fiscal year. But the intraday rebound proved short-lived. The market weakened in afternoon trade. The market once again recovered from lower level. It lost ground again later.
India VIX, a volatility index based on the S&P CNX Nifty index option prices, surged for the second day in a row. It jumped 5.74% to 24.85. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days
The market breadth was weak, though it recovered from early trade. The breadth was dismal in early trade. Shares related to infrastructure sector were hammered for the second running day. IT stocks languished following the US bank plan. Bank stocks declined as investors turned cautious ahead of the Reserve Bank of India's quarterly monetary policy review meet on 29 January 2010. Auto stocks were mixed ahead of Q3 earnings. PSU shares regained fancy after taking a pause on Thursday on profit booking.
European markets extended losses for the third-straight session, with banks under pressure after Obama proposed tough new regulations on the sector. Key benchmark indices in UK, Germany and France were down by between 0.59% to 0.61%.
Asian stocks fell for a fifth day today amid concerns China's economic growth will lead to policy tightening there. Key benchmark indices in China, Hong Kong, South Korea, Japan, Singapore and Taiwan were down by between 0.65% and 2.56%.
Fears that China will get more aggressive in reducing the risk of asset bubbles sent investors bailing from China-focused stock funds for an 18th consecutive week, research firm EPFR Global said on Friday. Investors pulled $348 million from China equity funds in the week ended 20 January 2010, the biggest outflow in 18 weeks.
Though global emerging market equity funds attracted $748 million in fresh money in the week of Jan. 20, Asia ex-Japan equity funds took in only $29 million because of the China-related outflows. Net inflows to emerging market bond funds hit the highest in eight weeks and US bond funds extended a streak of inflows to 55 weeks.
China will stick to its moderately loose monetary policy, People's Bank of China Governor Zhou Xiaochuan said in comments broadcast on Friday. Zhou made the comments soon after China on Thursday reported stronger-than-expected 10.7% year-on-year gross domestic product growth for the last quarter of 2009.
US stocks tumbled on Thursday after Obama threatened to fight Wall Street banks with a new proposal to limit financial risk taking. The Dow registered its biggest two-day drop since June 2008 led by losses in financial shares
The Dow Jones Industrial Average slipped 213.27, or 2%, to 10,389.88. The broader Standard & Poor's 500 Index declined 21.56 points, or 1.9%, to 1,116.48. The Nasdaq Composite Index was down 25.55 points, or 1.1%, to 2,265.70.
Obama proposed new limits on the size and activities of the nation's largest banks, pushing a more muscular approach toward regulation that yanked down bank stocks and raised the stakes in his campaign to show he's tough on Wall Street.
Obama proposed that banks be prohibited from running proprietary trading operations or investing in hedge funds and private equity funds as a way to limit the risk of another financial crisis. The plan comes as banks around the world are recovering from $1.7 trillion in losses and writedowns since the start of 2007.
The concern over lending in China and banking reforms in the US overshadowed better-than-estimated earnings at companies from Starbucks Corp. to Xerox Corp. and EBay Inc. which sent US shares higher at the start of trading on Thursday.
The World Bank has raised its forecast for global growth in 2010 but warned that the recovery may lose momentum in the second half of the year as government stimulus programs wind down and unemployment persists. The world economy will expand 2.7% this year after the worst recession since the end of World War II, compared with an estimate in June of a 2% expansion, the Washington- based poverty-reduction agency said today in an annual report. Growth may reach 3.2% in 2011, the bank said.
The World Bank report also includes figures on last year's downturn, with an estimate that the global economy declined 2.2%, compared with the 2.9% decrease projected in June. Growth in emerging nations is expected to reach 5.2% this year, compared with a June estimate of 4.4%, the bank said. China will expand 9% this year and India 7.5%, it said.
The World Bank also raised its forecast for US growth in 2010 to 2.5% growth, after predicting 1.8% in June. Japan's gross domestic product will expand 1.3% this year, more than the 1% predicted in June. The euro area's economy is forecasted to grow 1%, compared with the earlier estimate of 0.5% expansion.
Trading in US index futures indicated the Dow could rise 5 points at the opening bell on Friday, 22 January 2010.
Back home, aggregate results of 469 Indian companies showed 42.20% advance in net profit on 20.30% rise in sales in quarter ended December 2009 over the quarter ended December 2008.
The food price index rose 16.81% in the 12 months to 9 January 2010, while the fuel index was up 6.34%, the government said on Thursday. The rise in food price index was lower than an annual rise of 17.28% in the previous week.
The annual wholesale inflation rose to 7.31% in December 2009, compared with 4.78% in November and 6.15% a year ago. Finance minister Pranab Mukherjee said on Wednesday the government was taking steps to contain inflation. The situation is constantly under review, he said. He also promised more measures to check the rise in the prices of essential commodities.
Food prices will cool off in 1-2 months and inflation will turn around, finance ministry's chief economic advisor Kaushik Basu said in a newspaper interview published on Wednesday. The Reserve Bank of India will hold its quarterly monetary policy review on 29 January 2010 and is widely expected to increase the cash reserve ratio (CRR) requirements for banks, but economists are divided on when it will raise interest rates. CRR is the level of cash that banks must keep in deposit with the central bank. Food prices rose near 20% in December from a year earlier, their highest in 11 years.
India's October-December 2009 quarter economic growth is expected to be lower than the previous quarter, chief statistician Pronab Sen said on Thursday, due to a contraction in farm output. Indian economy, which grew at 7.9% in the September quarter, is expected to grow 6-6.5% in the December quarter, Sen said.
He expects the Indian economy to grow at 6.5-7.5% for the fiscal year ending in March 2010. The annual farm output in the December 2009 quarter is expected to contract by 6-7%, he added. Monthly inflation may touch double digits by March 2010, Sen had said earlier this week
Union food and agriculture minister Sharad Pawar on Wednesday suggested that the prices of milk and related products were set to rise because of the demand-supply mismatch.
Meanwhile, the government reportedly proposes to ease the norms for foreign direct investment (FDI) approval. Presently projects worth more than Rs 600 crore require the final approval of the Cabinet Committee on Economic Affairs (CCEA). The department of industrial policy and promotion (DIPP) has proposed that this ceiling be raised to anywhere between Rs 1,000 crore and Rs 1,500 crore. The new norms are likely to be notified after the introduction of a consolidated FDI policy framework on 1 April 2010.
FDI inflows increased to $27 billion in 2008-09 from $3.2 billion in 2004-05. During the period April-September 2009-10, FDI inflows reached $15 billion. The government has set a target of achieving $50 billion annual FDI by 2012 and $100 billion by 2017.
The BSE 30-share Sensex declined 191.46 points or 1.12% to 16,859.68. The Sensex opened 72.78 points lower at 16,978.36. It fell 50.81 points at the day's low of 17,000.33 in early afternoon trade. Sensex lost 443.05 points at the day's low of 16,608.09 in morning trade
The S&P CNX Nifty was down 58.15 points or 1.14% to 5036. The Nifty crashed below the psychological 5,000 mark to hit a low of 4954.85 in early trade.
Nifty January 2010 futures were at 5013.90, at a discount of 22.10 points as compared to the spot closing. Turnover in NSE's futures & options (F&O) segment soared to Rs 1,32,392.09 crore from Rs 1,11,117.17 crore on Thursday, 21 January 2010.
The total turnover on BSE amounted to Rs 6355 crore as compared with Rs 6537 crore on Thursday, 21 January 2010.
The market breadth, indicating the overall health of the market was weak. On BSE, 2041 shares declined as compared with 873 that rose. A total of 56 shares remained unchanged. The breadth was extremely weak in opening session of trade.
The BSE Mid-Cap index fell 1.09%, outperforming the Sensex. The BSE Small-Cap index declined 1.14%, underperforming the Sensex
BSE Bankex index (down 1.56%), BSE Realty (down 1.70%), and BSE IT index (down 1.61%), underperformed the Sensex
BSE FMCG index (up 1.34%), BSE Power index (down 0.22%) and BSE PSU index (up 0.36%), outperformed the Sensex.
Among the 30-member Sensex pack, 25 declined while only 5 of them gained.
Metal stocks declined after LMEX, a gauge of six metals traded on the London Metal Exchange, fell 1.14% on Thursday, 21 January 2010.
India's largest private sector steel maker by production capacity Tata Steel slumped 4.03% to Rs 622.20 and was the top loser from the Sensex pack.
Hindalco Industries (down 1.14%), Sterlite Industries (down 0.28%), Jindal Stainless (down 2.11%), Sail (down 3.23%), Sesa Goa (down 0.66%), and National Aluminum Company (down 3.77%), edged lower.
Capital goods pivotals saw divergent trend. India's largest engineering & construction firm by sales Larsen & Toubro (L&T) slumped 3.45% to Rs 1471.70. Nevertheless, the stock recovered from day's low of Rs 1438.80.
L&T extended Thursday's over 6% plunge after the company cut its revenue growth target to 10% from 15% at the time of announcing Q3 results on Thursday. L&T said profit after tax from ordinary activities rose 15% to Rs 696 crore in Q3 December 2009 over Q3 December 2008. Gross sales revenue declined 6% to Rs 8139 crore. The result was announced during trading hours on Thursday, 21 January 2010.
However, India's largest power equipment maker by sales Bharat Heavy Electricals (Bhel) surged 3.36% to Rs 2374.70, staging a sharp recovery from day's low of Rs 2240. The company's the net profit rose 35.67% to Rs 1072.59 crore on a 17.28% rise in total income to Rs 7422.51 crore in Q3 December 2009 over Q3 December 2008. The result was announced during trading hours on 21 January 2010. It was the top gainer from the Sensex pack
Power generation stocks declined as investors shuffled their portfolios ahead of the upcoming mega follow-on-public (FPO) offer of NPTC. Tata Power Company (down 1.64%), Torrent Power (down 4.91%), CESC (down 1.66%), Reliance Power (down 1.50%), declined.
India's largest power generation firm by total capacity NTPC was down 0.74%. The company FPO remains open between 3 and 5 February 2010. The pricing has not yet been announced by the company. Speaking in an interview to a news agency, the company's chairman said he expects an upcoming sale of its shares by the government to raise up to Rs 12,000 crore.
India's largest private sector utility firm by sales Reliance Infrastructure (R-Infra) declined 1.49%. The company has won Mumbai Metro Line II project from Maharashtra government. The estimated cost of project is around Rs 11,000 crore
DLF (down 2.88%), Unitech (down 1.85%), HDIL (down 0.78%), Indiabulls Real Estate (down 1.42%), and Omaxe (down 4.15%), declined from the realty pack.
Index heavyweight Reliance Industries (RIL) advanced 0.29% to Rs 1050.70, staging a steep recovery from the day's low of Rs 1029.70 in volatile trade. RIL's net profit rose 15.77% to Rs 4008 crore on 89.77% surge in total income to Rs 57364 crore in Q3 December 2009 over Q3 December 2008. RIL said the results had been reworked and restated to include figures from Reliance Petroleum, which it absorbed last year. The company announced the Q3 result during market hours today, 22 January 2010.
RIL's gross margin from refining a barrel of crude was $5.90 a barrel in the latest quarter, compared with $10 a barrel a year earlier. The company added said it has increased production at the D6 gas block in the Krishna-Godavari basin, off India's east coast, to 60 million metric standard cubic meters per day.
India's largest oil exploration firm by sales Oil & Natural Gas Corporation dropped 1.93%. The company posted a 23% rise to Rs 3054 crore on 24% rise in net sales to Rs 15373 crore in Q3 December 2009 over Q3 December 2008. The results, which lagged street estimates, were announced after market hours on 21 January 2010.
India's largest cellular services provider by sales Bharti Airtel gained 0.11% to Rs 322.50, after oscillating in a band of Rs 315-Rs 329.80. On consolidated basis, the company's net profit rose 13.2% to Rs 2236.90 crore on a 6.6% increase in total income to Rs 10327.57 crore in Q3 December 2009 over Q3 December 2008. The result was announced during trading hours today, 22 January 2010.
Idea Cellular surged 7.64% as net profit fell less than market estimates. Idea Cellular declared results after market hours on Thursday, 21 January 2009. Idea's net profit fell 23.1% to Rs 218.38 crore on a 11.8% increase in sales to Rs 2911.57 crore in Q3 December 2009 over Q3 December 2008.
Banking shares declined as investors turned cautious ahead of the Reserve Bank of India's monetary policy review meet on 29 January 2010.
India's largest private sector bank by net profit ICICI Bank lost 1.45%. The bank's net profit declined 13.44% to Rs 1101.06 crore on a 25% fall in total income to Rs 7762.71 crore in Q3 December 2009 over Q3 December 2008. The result was announced during trading hours on 21 January 2010. The company's American depository receipt, or ADR lost 4.60% to $35.87 on the New York Stock Exchange on Thursday, 21 January 2010.
India's second largest private sector bank by net profit HDFC Bank fell 2.33%.
India's largest bank by net profit and branch network State Bank of India slipped 1.60%. The bank's chairman O P Bhatt on 21 January 2010 said it is not looking at acquisition of any other bank outside SBI-fold, even as speculations are rife that consolidation in the banking sector may gather pace.
Indiabulls Financial Services rose 4.08%. The company will declare Q3 December 2009 results on 25 January 2010.
IT stocks declined on fears the Obama administration's bank plan will crimp outsourcing demand. The fall came despite the rupee losing further ground against the dollar today, 22 January 2010.
India's largest IT exporter by sales Tata Consultancy Services fell 2.01%. India's second largest IT exporter by sales Infosys fell 1.95%. India's third largest software services exporter Wipro lost 1.40%.
The partially convertible rupee was at 46.10/11, weaker than its close of 46.04/05 per dollar on Thursday, 21 January 2010. A weak rupee boosts operating profit margin of IT firms as the sector derives a lion's share of revenue from exports.
India's top tractor maker by sales Mahindra & Mahindra slipped 0.68%. After market hours on Thursday, the company said the board will meet on 25 January 2010, to consider stock-split proposal
Other auto shares were mixed as investors chose to stay on sidelines ahead of their earnings. India's largest car maker by sales Maruti Suzuki India fell 0.35% on profit booking. The company announces its Q3 December 2009 results on 23 January 2010.
India's top truck maker by sales Tata Motors rose 0.38% ahead of its Q3 December 2009 results on 29 January 2010
India's top bike maker by sales Hero Honda Motors advanced 1.11% ahead of its Q3 December 2009 results on 25 January 2010.
Defensive buying helped FMCG shares outperformed the Sensex as investors shuffled portfolio to low beta stocks with the market fall extending to fourth-day today.
India's largest cigarette maker by sales ITC rose 1.62% as net profit rose 26.67% to Rs 1144.17 crore in Q3 December 2009 over Q3 December 2008. The company announced Q3 result during market hours today.
Hindustan Unilever (down 0.31%), Britannia Industries (down 0.71%), Colgate Palmolive India (down 0.66%), Dabur India (down 0.57%), Marico (down 0.73%), Tata Tea (down 0.50%), and Nestle India (down 0.62%), though down, outperformed the Sensex.
United Spirits jumped 5.47% after net profit soared 216.6% to Rs 96.85 crore on a 30.8% increase in sales to Rs 1346.78 crore in Q3 December 2009 over Q3 December 2008. Net profit got a boost from robust growth of premium liquor brands. The company has sold over 2.6 crore cases of Indian made foreign liquor, registering 13% volume growth.
PSU shares regained fancy after taking a brief pause on Thursday on profit booking. State run shares have been a flavor of the season with the government pushing hard its disinvestment drive to raise funds for public welfare.
STC India (up 12.66%), HMT (up 3.04%), NMDC (up 6.95%), Dredging Corporation (up 7.18%), Engineers India (up 1.83%), gained.
Hindustan Copper jumped 9.99% after reports citing the company's chairman and managing director Shakeel Ahmed indicated that mines ministry has approved selling a 10% stake in the copper miner.
SpiceJet galloped 10.40% after company reported net profit of Rs 108.94 crore in Q3 December 2009 compared to a net loss of Rs 17.96 crore in Q3 December 2008. Total income rose 38.32% to Rs 653.38 crore in Q3 December 2009 over Q3 December 2008. The company announced the Q3 result during market hours today, 22 January 2010.
Reliance Industries was the top traded counter on BSE with turnover of Rs 234.53 crore followed by Larsen & Toubro (Rs 205.46 crore), Hindustan Copper (Rs 166.17 crore), NMDC (Rs 162.42 crore) and Tata Steel (Rs 144.35 crore).
Cals Refineries reported a highest volume of 3.17 crore shares on the BSE. SpiceJet (2.40 crore shares), Alok Industries (1.27 crore shares), RCF (1.25 crore shares), and K Sera Sera (1.11 crore shares), were the other volume toppers on the BSE.
Nervousness may continue
Headlines for the day
Bhartii-Limelight link up to deliver multimedia services - Business Standard
Bhushan Steel - Essel set to acquire plot for Rs1,530 crore - Business Standard
Syncom Healthcare IPO Price Band fixed at Rs 65-75 - Business Line
Drugs exporters concerned over rupee appreciation - Business Line
Wipro plans to trim Finland operations - Business Line
Events for the day
Major corporate action:
Dividend & Results : VIP Industries, Transport Corp, Merck, Edelweiss Cap, Garware Offsh
Results Today : Reliance Industries, Bharti, ITC, Grasim, Punj Lloyd, Tech Mahindra, Fortis Healthcare, HCC, Noida Toll, Mc Leod Russel, Dish TV, Godrej Properties, 3i infotech, Asian Paints, Bajaj Electricals, ceat, cesc, container corp, corporation corp, Dolphin offshore, Edelweiss, Electrosteel casting, essar oil. Geometric, Hind Zinc, HMT, Inox leisure, Ispat, Jay shree chem., JK paper, Kalyani forge, Landmark Forging, Mah ugine, Merck, Mirc Elec, Nelcast, Peninsula land, Piramal Glass, Pratibha Ind, ratnamani Metals, Transport Corp, United breweries, VIP Ind, Visa Steel, Zee news.
Pre-market report
Global signals
European shares fell sharply for a second day on Thursday with banks sliding, miners suffering from lower metals prices and reports they face higher taxes, and after U.S. data cast further doubt on the economic recovery. At the end, FTSE 100 closed 1.57% lower at 5336.
While the U.S. stocks suffered their worst one-day percentage drop since October on Thursday as U.S. President Barack Obama proposed tough restrictions on banks that would squeeze profits.
Ongoing trade, all the Asian indices showing the weak trend in the early trading hours. Shanghai Composite, Hang Seng, Seoul Composite, Straits and Jakarata trading in red territory with 1-2% each. And at the time of writing this report, SGX Nifty that opened marginally higher, shed his gain and was trading lower by 82 points.
Indian markets
After witnessing a sharp slump of over 400 points in yesterday's trades, the market is likely to remain shaky as global markets fell further and the FIIs remaining net sellers of equities in the local market. Although the sentiment is likely to remain bearish on weak global indices.
Among the local indices, the Nifty could test the 5150-5220 range on the up side, while on the down side it could find support at 5050 and 5010. While the Sensex is likely to get support at 16900 and may face resistance at 17200.
Commodity cues
In the commodity space, the Crude oil prices lost, with the Nymex light crude oil for March series fell by $1.54 to settle at $76.20 a barrel.
In the metals space, Comex Gold for March series tumbles $9.60 to settle at $1,103 to a troy ounce.
Daily trend of FII/MF investment in equities
On January 20, 2009, FIIs were the net sellers of the Indian Stocks in the tune of Rs32.30 crore (with the gross purchase of Rs2712 crore and gross sales of Rs2744 crore).
While the Domestic mutual funds, on January 20, 2009, were the net Seller of the stocks in the tune of Rs197 crore (with gross purchase of Rs723 crore and gross sales of Rs920 crore).
Daily Grey Market Premium - Jan 22 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Jubilant Food Works Ltd. | 135 to 145 | 30 to 32 |
| Aqua Logistics | 220 to 230 | 18 to 20 |
| Syncom Healthcare | 65 to 75 | 6 to 8 |
| Thanga Mayil | 70 to 75 | 6 to 8 |
| Vascon Engg. | 165 to 185 | 24 to 25 |
| NTPC (FPO) | -- | -- |
| Infinite Computer | 155 to 165 | 37 to 38 |
| Birla Shloka (FPO) | 45 to 50 | Discount |
Moser Baer
It is apparent from the charts that after encountering key resistance at Rs 115 in June 2009, the stock started to decline and has been trending downwards forming lower peaks sine then. Following a medium-term corrective up move it met with twin resistance around Rs 93 (downtrend line and significant medium-term resistance) in early January and appears to have resumed its intermediate-term downtrend. While declining the stock broke through a support at Rs 88 on January 21, with almost four per cent decline. It also breached its 21 and 5-day moving averages. The daily relative strength index (RSI) is likely to enter into the bearish zone from the neutral region and weekly RSI is slipping towards the bearish zone in the neutral region. A sell signal has been generated in the daily moving average convergence and divergence indicator. Considering that the stock has been trending down from a longer term as well as intermediate-term horizon, we are bearish on it. We expect the stock's decline to continue until it hit our price target of Rs 76 in the approaching trading sessions. Traders with short-term perspective can consider selling the stock while maintaining stop-loss at Rs 89.
via BL
Market likely to fall sharply
Indian equities are likely to open negative on Friday, January 22, 2010. SGX Nifty is trading at 5,005 (7.48 am), 80 points lower than Thursday`s closing of 5,085.
The market will watch for RIL, Grasim Industries, Bharti Airtel, Punj Lloyd and Tech Mahindra third quarter results today.
Asian stocks fell for a fifth day on concern tax changes will hurt profits at Australian mining companies and a stronger yen will crimp the value of Japanese exporters` overseas sales. Japanese benchmark index Nikkei 225 declined 310.96 points, or 2.86%, to trade at 10,557.45.
US stocks tumbled on Thursday. President Barack Obama`s plan to change the way big banks make their money plunged the stock market back into the fear and uncertainty that marked the financial crisis. The Dow fell 213.27 points, or 2.01%, to 10,389.88. Among Indian ADRs, Wipro (0.22%), Dr Reddy`S Laboratories (1.51%), MTNL (1.68%), Infosys Technologies (2.19%) were major losers.
European stocks dropped for a second day, erasing the gains for this year, as mining and banks shares tumbled and a report showed an unexpected rise in American jobless claims. UK`s benchmark index FTSE 100 dropped 85.70 points, or 1.58%, to end at 5,335.10.
In the spot market, the Dollar Index dropped 0.292% to 78.18. It touched a high of 78.39 and a low of 78.14 after opening at 78.31. (21:19 ET)
Oil prices dropped Thursday to the lowest level in a month after a government report showed the country continues to use less energy than last year, raising doubts about the strength of the fragile economic recovery. Benchmark crude for March delivery fell USD 1.66 to settle at USD 76.08 a barrel on the New York Mercantile Exchange.
Market may extend losses for fourth-day on new US bank plan
The market is seen extending last three day fall following dismal global cues following the Obama administration announcing a new plan to curb risk. The S&P CNX Nifty futures for January 2010 expiry were trading 82 points lower in Singapore.
Among the key Q3 December 2009 results for the day include Bharti Airtel, Reliance Industries, ITC, Punj Lloyd and Tech Mahindra.
Aggregate results of 415 companies showed 51.10% advance in net profit on 8.4% rise in sales in quarter ended December 2009 over the quarter ended December 2008.
The food price index rose 16.81% in the 12 months to 9 January 2010, while the fuel index was up 6.34%, the government said on Thursday. The rise in food price index was lower than an annual rise of 17.28% in the previous week.
The annual wholesale inflation rose to 7.31% in December 2009, compared with 4.78% in November and 6.15% a year ago. Finance minister Pranab Mukherjee said on Wednesday the government was taking steps to contain inflation. The situation is constantly under review, he said. He also promised more measures to check the rise in the prices of essential commodities.
Food prices will cool off in 1-2 months and inflation will turn around, finance ministry's chief economic advisor Kaushik Basu said in a newspaper interview published on Wednesday. The Reserve Bank of India will hold its quarterly monetary policy review on 29 January 2010 and is widely expected to increase the cash reserve ratio (CRR) requirements for banks, but economists are divided on when it will raise interest rates. CRR is the level of cash that banks must keep in deposit with the central bank. Food prices rose near 20% in December from a year earlier, their highest in 11 years.
India's October-December 2009 quarter economic growth is expected to be lower than the previous quarter, chief statistician Pronab Sen said on Thursday, due to a contraction in farm output. Indian economy, which grew at 7.9% in the September quarter, is expected to grow 6-6.5% in the December quarter, Sen said.
He expects the Indian economy to grow at 6.5-7.5% for the fiscal year ending in March 2010. The annual farm output in the December 2009 quarter is expected to contract by 6-7%, he added. Monthly inflation may touch double digits by March 2010, Sen had said earlier this week
Union food and agriculture minister Sharad Pawar on Wednesday suggested that the prices of milk and related products were set to rise because of the demand-supply mismatch.
Excise, customs and service tax collections are continuing to show a negative growth. Excise duty collections between April to December 2009 are down by 13% at close to Rs 70,000 crore. Revenues by way of customs duty are also down by a whopping 28% at around Rs 59,000 crore while service tax collection is also down over 6% with the government collecting slightly over Rs 36,000 crore.
This takes the total collection of indirect taxes in the first nine months to about Rs 1,66,000 crore, down by 18% as compared to last fiscal. The government has set itself a target to collect around Rs 2,70,000 crore by the end of fiscal year ending March 2010.
Meanwhile, the government reportedly proposes to ease the norms for foreign direct investment (FDI) approval. Presently projects worth more than Rs 600 crore require the final approval of the Cabinet Committee on Economic Affairs (CCEA). The department of industrial policy and promotion (DIPP) has proposed that this ceiling be raised to anywhere between Rs 1,000 crore and Rs 1,500 crore. The new norms are likely to be notified after the introduction of a consolidated FDI policy framework on 1 April 2010.
FDI inflows increased to $27 billion in 2008-09 from $3.2 billion in 2004-05. During the period April-September 2009-10, FDI inflows reached $15 billion. The government has set a target of achieving $50 billion annual FDI by 2012 and $100 billion by 2017.
Economic growth will accelerate this year, Commerce and Industry Minister Anand Sharma said on Tuesday as he demanded better access to China's markets to help exports. Sharma's call for greater access for goods comes amid a widening trade gap between the two countries. Trade between the two grew rapidly to $50 billion in 2008, making China India's second-largest trading partner, but fell back to $43 billion in 2009 as global trade declined. Sharma called for more Chinese direct investment in India, especially in infrastructure, while noting that Indian firms are already present in China.
Asian stocks fell for a fifth day today amid concern China will take more steps to curb price increases in an economy that has led the global recovery. Key benchmark indices in China, Hong Kong, South Korea, Japan, Singapore and Taiwan were down by between 1.36% and 2.72%.
In US markets, the Dow logged its biggest two-day drop since June 2008 on Thursday as big financials led decline as President Obama rattled the market with plans to crack down on Wall Street risk taking.
The Dow Jones Industrial Average slipped 213.27, or 2%, to 10,389.88. The broader Standard & Poor's 500 Index declined 21.56 points, or 1.9%, to 1,116.48. The Nasdaq Composite Index was down 25.55 points, or 1.1%, to 2,265.70.
President Barack Obama proposed new limits on the size and activities of the nation's largest banks, pushing a more muscular approach toward regulation that yanked down bank stocks and raised the stakes in his campaign to show he's tough on Wall Street.
Developing Asian economies face the risk of asset bubbles or overheating as the region's growth outpaces the rest of the world this year, the World Bank said in a report on Wednesday. In South Asia, policy makers will be particularly responsive to signs of building inflationary pressures because of a strong aversion to food-price increases, the World Bank said.
The World Bank raised its forecast for global growth in 2010 but warned that the recovery may lose momentum in the second half of the year as government stimulus programs wind down and unemployment persists. The world economy will expand 2.7% this year after the worst recession since the end of World War II, compared with an estimate in June of a 2% expansion, the Washington- based poverty-reduction agency said today in an annual report. Growth may reach 3.2% in 2011, the bank said.
The World Bank report also includes figures on last year's downturn, with an estimate that the global economy declined 2.2%, compared with the 2.9% decrease projected in June. Growth in emerging nations is expected to reach 5.2% this year, compared with a June estimate of 4.4%, the bank said. China will expand 9% this year and India 7.5%, it said.
The World Bank also raised its forecast for US growth in 2010 to 2.5% growth, after predicting 1.8% in June. Japan's gross domestic product will expand 1.3% this year, more than the 1% predicted in June. The euro area's economy is forecasted to grow 1%, compared with the earlier estimate of 0.5% expansion.
Back home, the key benchmark indices extended losses for the third straight day on Thursday on disappointing Q3 results from frontline companies. The BSE 30-share Sensex declined 423.35 points or 2.42%.
As per provisional figures on NSE, the foreign funds sold shares worth Rs 853.75 crore and domestic funds bought shares worth Rs 231.36 crore on Thursday, 21 January 2010.
Daily News Roundup - Jan 22 2010
IOC has sought government’s intervention to participate in US$12.5bn Iranian projects. (ET)
Relinace Infra led consortium aims to achieve financial closure for the Rs110bn second phase of Mumbai Metro by October 2010. (BS)
TCS has bagged a US$50mn deal in the platform-based BPO unit. (BS)
Wipro is planning to reduce its headcount in Finland by around 85 people. (ET)
Bharti Airtel has partnered with US-based Limelight Networks for content delivery network services in India. (ET)
SBI says that it is not looking at acquisitions of any other bank outside the SBI group. (ET)
GAIL expects work on the Dhabol-Bangalore gas pipeline project to be completed by March 2010. (ET)
HCL Tech has appointed Mr. Satish Chadrashekharan to spearhead its global services delivery and retail vertical. (ET)
Reliance Capital AMC is negotiating with Malaysia to manage up to US$5bn of public and government fund. (ET)
Tata Teleservices has added 3.3mn subscribers in December 2009, becoming the No.1 operator in terms of subscriber addition for the fifth consecutive time. (ET)
HCL BPO is planning to increase headcount in its media BPO division to 600 from present 300 in the next 12-18 months. (BL)
Hindustan Zinc has reduced zinc prices by Rs900 a ton. (BL)
The Shipping Secretary says that government has no plans to divest stakes in SCI and Dredging Corporation. (ET)
Gammon Infra intends to buy stakes in international airports projects. (BS)
Essel Group and Bhushan Steel are set to acquire 250 acre plot in Khargar for Rs15.3bn. (BS)
Mercator Lines is looking at acquiring more coal mines in Indonesia. (ET)
Jubilant Organosys is de-merging its non core business, agri and performance polymer, into a separate subsidiary. (ET)
Trent to scale up Star Bazaar stores to 18 by the end of FY11. (ET)
Triveni Engineering proposes to hive-off its steam turbines business into a separate company. (BL)
Spectrum usage fees go up by 20% from January 1, 2010. (ET)
Government boosts PDS grain flow to fight against inflation. (ET)
Decline in farm output may pull down GDP growth in Q3 FY10 to 6-6.5%, says Pronab Sen, the Chief Statistician of India. (ET)
Food Inflation eased to 16.81% for the week ended January 9, 2010. (BL)
Trai moots plan to charge operators for phone number allocations. (BL)
Government to start 3G auction on February 25, 2010. (BS)
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