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Monday, January 25, 2010
Sensex ends 79.22 pts lower on weak cues
Indian markets fell for the fifth straight session on Monday, January 25. Both Sensex and Nifty traded below 1-month low. After opening flat with negative bias following weak global cues. It slipped further and remained cautious over Obama Barack bank plan. Later it pared all losses and moved into the positive terrain due to select buying seen in frontliners amid volatility ahead of public holiday tomorrow and January series expiry and Reserve Bank of India`s monetary policy announcement later this week. Subdued global markets also dampened sentiments.
At the close, the benchmark 30-share index, BSE Sensex lost 79.75 points or 0.47% at 16,779.93 with 18 components posting drop. Meanwhile, the broad based NSE Nifty fell by 28.10 points or 0.56% at 5,007.90 with 32 components registering drop.
On global front, European stocks fell for a fourth day, the longest losing streak in two months, after US shares plunged the most since October on Jan. 22 and Ericsson reported disappointing earnings. US index futures rose.
Sensex Movers
Reliance Industries contributed fall of 24.96 points in the Sensex. It was followed by Infosys Technologies (21.4 points), Mahindra & Mahindra (19.11 points), H D F C Bank (15.1 points) and I C I C I Bank (14.23 points).
However, I T C contributed rise of 15.77 points in the Sensex. It was followed by Bharti Airtel (15.74 points), Larsen & Toubro (13.6 points), Hindustan Unilever (7.52 points) and Oil & Natural Gas Corporation (2.99 points).
Major gainers in the 30-share index were Bharti Airtel (2.82%), Hindustan Unilever (2.06%), I T C (1.86%), Larsen & Toubro (1.27%), Maruti Suzuki India (0.78%), and Sun Pharmaceutical Industries (0.61%).
On the other hand, Mahindra & Mahindra (6.09%), Jaiprakash Associates (3.33%), D L F (2.95%), Tata Steel (2.27%), Sterlite Industries (India) (2.05%), and H D F C Bank (1.75%) were the major losers in the Sensex.
Mid & Small-cap Space
The BSE Midcap index was at 6695.32 down by 88.34 points or by 1.3%. The major losers were A I A Engineering (5.91%), Reliance MediaWorks (2.18%), Aban Offshore (2.09%), Alfa-Laval (India) (0.49%) and Alstom Projects India (0.06%).
The BSE Smallcap index was at 8583.01 down by 78.16 points or by 0.9%. The major losers were Abhishek Industries (3.31%), A B G Shipyard (2.32%), Provogue (India) (1.69%), A B G Infralogistics (1.47%) and Action Construction Equipment (1.43%).
Sectors in Limelight
The Realty index was at 3,648.15, down by 108.01 points or by 2.88%. The major losers were Indiabulls Real Estate (3.9%), Anant Raj Industries (3.41%), D L F (2.95%), Ansal Properties and Infrastructure (2.57%) and Mahindra Lifespace Developers (0.67%).
The Auto index was at 7,243.92, down by 158.05 points or by 2.14%. The major losers were Bajaj Auto (3.39%), Apollo Tyres (3.16%), Bharat Forge (2.47%), Amtek Auto (2.05%) and Ashok Leyland (1.33%).
The Metal index was at 17,042.31, down by 263.17 points or by 1.52%. The major losers were JSW Steel (3.77%), NMDC (3.23%), Hindalco Industries (1.46%), Jindal Steel & Power (0.55%) and National Aluminium Company (0.3%).
On the other hand, the FMCG index was at 2,803.73, up by 31.66 points or by 1.14%. The major gainers were Hindustan Unilever (2.06%), I T C (1.86%), Dabur India (0.29%) and Nestle India (0.12%).
Market Breadth
Market breadth was negative with 1,165 advances against 1,697 declines.
Value and Volume Toppers
Jai Corp topped the value chart on the BSE with a turnover of Rs. 2,042.35 million. It was followed by Hindustan Copper (Rs. 1,455.76 million), Rashtriya Chemicals & Fertilizers (Rs. 1,073.09 million) and National Fertilizers (Rs. 966.63 million).
The volume chart was led by Cals Refineries with trades of over 16.50 million shares. It was followed by Rashtriya Chemicals & Fertilizers (10.00 million), K Sera Sera Productions (8.13 million) and Ispat Industries (7.79 million).
Results
NMDC announced a steep drop in standalone net profit for the quarter ended December 2009. During the quarter, the profit of the company declined 39.65% to Rs 8,599.90 million from Rs 14,249.50 million in the same quarter previous year. Net sales declined 32.08% to Rs 15,876 million, while total income for the quarter fell 28.49% to Rs 18,334.80 million, when compared with the prior year period.
HCL Technologies disclosed a steep drop in standalone net profit for the quarter ended December 2009. During the quarter, the profit of the company declined 35.82% to Rs 2,554.40 million from Rs 3,980.10 million in the same quarter last year. Net sales declined 6.98% to Rs 12,137 million, while total income for the quarter fell 11.97% to Rs 12,592.20 million, when compared with the prior year period.
Welspun India announced a phenomenal rise in standalone net profit for the quarter ended December 2009. During the quarter, the profit of the company rose 50.83 times to Rs 206.66 million from Rs 4.07 million in the same quarter previous year. Net sales for the quarter for the quarter surged 40.90% to Rs 5,056.43 million, while total income for the quarter jumped 40.95% to Rs 5,062.78 million, when compared with the prior year period.
Mahindra & Mahindra (M&M) reported a rise of 12.11 times in its consolidated net profit for quarter ended Dec.31, 2009. During the quarter, the company reported profits of Rs 4,737 million as against Rs 391 million for the quarter ended Dec. 31, 2008. The gross revenues and other income for the quarter were at Rs 815,680 million, a rise of 28.40% over the prior year period. On a standalone basis, the net profit of the company was at Rs 4,137 million, a rise of 10.72 times over the prior year period.
Nifty January 2010 futures below 5,000
Turnover declines
Nifty January 2010 futures were at 4,992.55, at a discount of 15.35 points as compared to the spot closing of 5,007.90. Turnover in NSE's futures & options (F&O) segment was Rs 92,202.15 crore, lower than Rs 1,32,392.09 crore on Friday, 22 January 2010.
The near-month January 2010 contracts will expire on Thursday, 28 January 2010.
Tata Steel January 2010 futures were at discount at 605.45 compared to the spot closing of 610.
Tata Motors January 2010 futures were near spot price at 761.85 compared to the spot closing of 761.30.
Reliance Industries January 2010 futures were near spot price at 1,041.05 compared to the spot closing of 1,041.35.
In the cash market, the S&P CNX Nifty fell 28.10 points or 0.56% at 5,007.90.
Asian markets end weak on Wall Street cues
Shanghai, Sensex, Seoul, Sydney edge lower while Hang Seng, Nikkei follows them
Stock markets in Asian region extended their fall over weekend by ending mildly lower on Monday, 25 January 2010, as investors indulge in selling once again on the back of a sharp decline on Wall Street on Friday amid renewed worries about an economic recovery following the U.S. government proposing some stricter rules for the financial sector.
Investors were finding it difficult shrugging off concerns over possible U.S. bank restrictions, as well as monetary tightening in China. Those worries dragged U.S. shares sharply lower Friday, as the Dow Jones Industrial Average recorded its biggest one-day drop since 30 October 2009.
On Wall Street, stocks finished sharply lower Friday, weighed down by slumping tech and financial shares and uncertainty over the Obama administration's increasingly hostile approach toward Wall Street and China's economic policy. The Dow Jones Industrial Average tumbled 217 points, or 2.1%, to 10,173. The S&P 500 shed 25 points, or 2.2%, to 1092, as the Nasdaq fell 60 points, or 2.7%, to 2205.
The third straight day of declines dragged the blue-chip average down to its worst weekly performance in nearly a year. The Dow plunged 4.1% since last Friday. The S&P 500 slid 3.9% for the week, as the Nasdaq dropped 3.6%.
In the commodity market, crude oil traded near a one-month low as sliding equity markets and expectations of interest-rate increases in China dented investor confidence in the strength of the global economic recovery.
Crude oil for March delivery was at $74.51 a barrel, down 3 cents, in after-hours electronic trading on the New York Mercantile Exchange at 3:44 p.m. in Singapore. Earlier the contract fell as much as 43 cents, or 0.6%, to $74.11. It dropped 2% to $74.54 on 22 January 2010, the lowest settlement since 22 December 2009.
Brent oil for March settlement was at $72.94 a barrel, up 11 cents, on the London-based ICE Futures Europe exchange at 3:45 p.m. Singapore time. It fell 2.4% to $72.83 on 22 January 2010.
Gold climbed for the first time in four days in London on speculation that a weaker dollar and the lowest prices in a month will boost bullion’s appeal as an alternative asset. Gold for immediate delivery added $7.48, or 0.7%, to $1,100.68 an ounce at 9:45 a.m. London time. Gold for February delivery was 1% higher at $1,100.50 on the New York Mercantile Exchange’s Comex division.
In the currency market, US dollar and yen retreat mildly as the situation for Fed chairman Bernanke to win the vote for second term became more optimistic over the weekend.
The Japanese yen dropped against major currencies on Monday on prospects Federal Reserve Chairman Ben S. Bernanke will win a second term and continue recovery policies in the world’s biggest economy. Japan’s currency was quoted at 90.10 per US dollar on Monday from Friday’s quote at Y89.92 per dollar in New York.
The Hong Kong dollar was trading at HK$ 7.7674 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 steadied against the US dollar on Monday, but uncertainty in offshore markets is likely to weigh on the local currency in the near-term. At the local close, the dollar was trading at $US0.9061, up from $US0.9031 on Friday, with trading limited ahead of the Australia Day holiday.
In Wellington trades, the New Zealand dollar bounced back this afternoon, after falling against the greenback as the US market was affected by US President Barack Obama’s plan to curb bank risk-taking. The NZ dollar also lost ground on the wake of uncertainty about the future of Federal Reserve chairman Ben Bernanke, which also took a toll on US markets. But the Kiwi dollar was buying US 71.49 cents around 5 pm higher than the US 70.95 cents this morning and US 71.30 cents at 5pm Friday.
The South Korean won closed at 1150 won to the greenback, up from Friday 1151 won.
The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 31.9700, 0.0100 up from Friday’s close of NT$31.9800.
In equities, Asian stock markets were lower Monday, with financial shares particularly weak as investors remained risk averse following sharp losses on Wall Street Friday.
In Japan, the share market has ended the day in the red on Monday, but well off morning lows, supported by bouncing domestic currencies to lower 90 yen level and late hour bargain hunting after a plunge the previous trading day on uncertainty over the Obama administration's.
Concerns about US President Obama’s plan to limit the size and scope of US financial institutions weighed down banks and financials, while slide in commodity prices pressured on energy and metal shares. Resources and brokerage were particularly weak with falling commodity metal and oil prices. The dollar's resilience against the yen helped trim losses. The dollar held above the psychologically key Y90 level for most of the session, buoyed up export related shares.
At the end of Monday trade, the Nikkei 225 Stock Average index was at 10,512.7, dropped 77.86 points or 0.74%, while the broader Topix of all First Section issues on the Tokyo Stock Exchange fell 6.35 points, or 0.67%, to 934.59.
In Mainland China, the stock index got hammered by worries about the US economy following the worst three-day slump on Wall Street in 10 months, retreat in commodity prices, and tightening lending conditions. Cautious over early withdrawal of government stimulus packages to prevent the world’s fastest-growing major economy from overheating triggered selling across major heavyweights, with financials and materials led the decline.
At the end of Monday’s trade, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, dropped 34.18 points, or 1.09%, to 3,094.41, while the Shenzhen Component Index on the smaller Shenzhen Stock Exchange dived 125.75 points, or 1%, to 12,470.19. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, dropped 1.13%, to 3,328.01.
In Hong Kong, the stock market tumbled to its lowest level in three month on tracking regional weakness after Wall Street Friday triple digit slumps on uncertainty over the Obama administrations and fall in commodities. Meanwhile declines were also fueled by renewed worries about fundraising by other lenders after Bank of China plan to raise capital as much as 40 billion Yuan to bolster its capital.
At the end of Monday’s session, the Hang Seng Index dropped 127.63 points, or 0.62%, to 20,598.55, while the Hang Seng China Enterprise, which tracks the overall performance of 43 Mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, shrank 117.19 points, or 0.98%, to 11,858.46.
In Australia, the shares stretching losses to a third straight session as investor sentiment battered by continued falls on Wall Street Friday on renewed concerns over the US economy, retreat in commodity prices, and tightening lending conditions in China. At the closing bell, the benchmark S&P/ASX200 index dropped 32.70 points, or 0.69%, to 4,717.9, meanwhile the broader All Ordinaries dived 28.80 points, or 0.6%, to 4,743.10.
In New Zealand, the share market drifted south in today trading as the fallout from two days of falls on Wall Street continued to affect the global market. At the closing today, the NZX 50 inched lower by 0.06% or 1.77 points to 3188.66. Meanwhile, the NZX 15 added 0.01% or 0.68 points to close at 5748.88.
In South Korea, stocks closed lower Monday as a U.S. plan to tighten bank regulations caused local bank shares to plunge. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 14.15 points to end at 1,670.2.
In Singapore, the share market was lower with financial shares particularly weak as investors remained risk aversion following sharp losses on Wall Street Friday on renewed concerns about the global economy, but bargain hunting after a plunge the previous trading day limited losses. Banks and properties tumbled as US proposals to curb excessive risk-taking by banks, meanwhile falling commodities prices took toll on manufacturing and multi-industries shares. At the end of Monday’s trade, the blue chip Straits Times Index was at 2,811.71, shed 8 points or 0.28%.
On the economic front, the Department of Statistics said in a statement in Singapore today that the consumer price index in December was unchanged from a year earlier, after falling 0.2% in November. Singapore’s consumer price index dipped 0.5% in December 2009 over November 2009. This was due mainly to lower costs of housing and transport & communication.
In Taiwan, stock market tumbled to a fresh one month low as major technology exporters eased in the wake of losses on Wall Street on fears of U.S. government restrictions on banks. The benchmark Taiex share index extended loses to sixth straight session, as the index finished lower by 54.32 points or 0.69% at 7872.99, the lowest closing since 22 December 2009 when market finished at 7856.
In Philippines, the stock market closed lower, with investors continuing to be largely guided by overseas developments. Investors monitored developments on the Obama plan and China’s tightening as they have the potential of stalling global economic recovery. Moreover, NG’s budget deficit and speculation of a “possible” key rate adjustment from the Monetary Board of the Bangko Sentral ng Pilipinas continued to be a source of concern for the market players. At the concluding bell, the benchmark index PSEi lost 1.83% or 55.51 points to 2,967.96, while the All Shares index tumbled 0.93% or 17.86 points to 1,889.03.
In India, selling pressure in late trade following disappointing earnings from auto major Mahindra & Mahindra (M&M) derailed a sharp pullback on the bourses. As a result, key benchmark indices extended losses for the fifth straight session with weak global cues playing the spoilsport. High volatility was the hallmark of the day's trading session. The BSE 30-share Sensex was down 79.22 points or 0.47% to 16,780.46. The S&P CNX Nifty was down 28.10 points or 0.56% to 5007.90.
Elsewhere, Malaysia’s Kula Lumpur Composite index finished slightly lower at 1296.79 while stock markets in Indonesia’s Jakarta Composite index fell by 12.48 points ending the day higher at 2597.86.
In other regional market, European shares moved off their worst levels on Monday, helped by gains for banks and miners. The U.K. FTSE 100 index rose 0.3% to 5,317.22, the French CAC-40 index traded flat at 3,821.51 while the German DAX index declined 0.3% to 5,676.39.
Syncom Healthcare IPO Review
Syncom Healthcare (SHL) is an Indore based pharmaceutical company promoted by Ajay Bankda and his family. The company manufactures and markets pharmaceutical formulations under its own brands in ethical, OTC, generic and herbal segments. It company established its first manufacturing facility at Selaqui, Dehradun, in Uttarakhand, for manufacturing all types of formulations in November 2006.
SHL came into existence on July 29, 2002 during family partition to carry the domestic formulation business of Syncom Formulation (SFL). Subsequently, SHL and SFL entered into an agreement on use of certain trademarks/copyrights/brands in the domestic and export markets. Under the agreement, SHL cannot sell its products in export markets under the ‘Syncom' brand for the products covered in the agreement, whereas SFL cannot sell these products in domestic market.
SHL started by marketing pharmaceutical products manufactured by others under its own brand. After commencing its own manufacturing facility, it also started contract manufacturing. The company produces more than130 products in the generic segment, 40 products in the OTC segment, 20 products in the ethical segment and 25 products in the herbal segment.
As a growth strategy, SHL is planning to enter overseas market. For this purpose, it proposes to set up a UK MHRA, US FDA and WHO-cGMP compliant formulation manufacturing facility at Indore SEZ. To boost revenue from contract manufacturing, the company is upgrading existing plant and planning to get WHO approval.
The object of the issue is to raise funds to finance its future plans (1) to set up new manufacturing unit at Indore SEZ for manufacturing various pharmaceutical formulations: Rs 20.48 crore; (ii) to undertake the upgradation/ modernization of manufacturing facilities at the Dehradun plant: Rs 6.62 crore; (iii) to meet working capital requirements: Rs 15 crore; (iv) to set up an export office at Mumbai: Rs 4.00 crore; and (v) to undertake brand & product registration and approval: Rs 3.00 crore. The balance is for general corporate purposes as well as public issue expenses.
Strengths
* The manufacturing facility at Dehradun was set up in a tax-free and duty-free zone. The company enjoys 100% excise duty exemption for 10 year from the year of commencement of production (2006), 100% income tax exemption for first 5 years from assessment year, and 30% exemption for subsequent 5 years.
* Currently, the company is undertaking contract manufacturing (a healthy margin business) for domestic and international companies. Top clients are Lupin, Piramal Healthcare and Galpha Labs.
* The promoter has experience of over 26 year in the pharma sector.
Weaknesses
* The trade agreements between SHL and SFL limit exports of many existing branded products of the company. However, the company can sell these products in export market with different brand names.
* The company has not entered into any agreement for acquiring land for the new manufacturing facility. It expects to acquire land by March 2010 and commence commercial production by December 2010. The process will be affected if there is any delay in project execution / regulatory approvals.
* There is considerable delay in getting approvals from US FDA / UK MHRA of late. By thumb rule, it takes at least two years for getting approval from UK MHRA and US FDA for manufacturing facility. So, for significant revenue from advanced markets from the Indore facility, the company / investors may have to wait for even up to three years from now.
* The company's cash flows from operations were negative in four out of the last five years. Even for the four months of the current fiscal, they are negative.
* The revenue contribution from Top 10 clients increased from 40.25% in 2005 to 68.95% in 2009. There is high concentration of revenue from top 10 clients. Loss of any one or more of these clients could adversely affect the company's performance. In the same way, the top 5 suppliers constitute more than 50% of purchases. If any these suppliers fail to provide raw materials of specified quality and quantity at proper time, it will also impact the company's performance.
* The company gets a sizeable portion of its revenue from domestic generic market. To push through its products in this competitive market, it appears to have given huge credit, with 47-52% of the revenue remaining as sundry debtors in the last few years. This not only locks the company's funds, but also exposes it to high credit risk.
* The company's margins have been steadily eroding from 17.6% in FY 2007 to 15.8% in the four months ended July 2009.
Valuation
Sales of SHL increased by 17% to Rs 60.56 crore for the year ended March 2009. But its net profit rose mere 3% to Rs 3.81 crore, on fall in margins. The company recorded sales of Rs 20.99 crore (i.e. 35% total sales of FY 2009) and profit of Rs 1.79 (i.e., 47% of profit in FY 2009) for the four months ended July 2009. At the offer price band of Rs 65-Rs 75, the EPS of Rs 2.2 for FY 2009 is discounted by 29.5 to 34.1 times. However, at annualized EPS of 3.1 for the four months ended July 2009, the P/E stands at 21 to 24.2 times at the lower and upper band respectively. But the TTM P/E of the Pharma – Formulation sector is just 8.8.
BSE Bulk Deals to Watch - Jan 25 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
25/1/2010 524412 Aarey Drugs DAXABEN VASANTKUMAR SHAH B 42332 50.52
25/1/2010 524412 Aarey Drugs VARSHABEN NAVINBHAI SONI B 40918 51.14
25/1/2010 524412 Aarey Drugs HARJIRAMLAL JI CHAUDHARY S 27500 51.26
25/1/2010 524412 Aarey Drugs THAKORLAL ATMARAM MODI S 46510 51.09
25/1/2010 524412 Aarey Drugs DAXABEN VASANTKUMAR SHAH S 49787 50.73
25/1/2010 524412 Aarey Drugs PATEL APEXA JAGDISHBHAI S 30879 51.18
25/1/2010 524412 Aarey Drugs VARSHABEN NAVINBHAI SONI S 65200 50.18
25/1/2010 524412 Aarey Drugs RAMESH CHANDRA P MEHTA S 25000 51.13
25/1/2010 524412 Aarey Drugs CHETAN KIRITBHAI MEHTA S 25000 51.27
25/1/2010 517356 ACI Infocom RITESH RAMESH MEHTA B 50000 14.87
25/1/2010 517356 ACI Infocom ROHNIL BORADIA B 48821 14.87
25/1/2010 517356 ACI Infocom RITESH RAMESH MEHTA S 50000 14.85
25/1/2010 517356 ACI Infocom ROHNIL BORADIA S 48821 14.87
25/1/2010 517356 ACI Infocom DIVYA ALOK GUPTA S 500000 13.90
25/1/2010 530901 ACIL Cot Inds SANJAY JAIN B 100000 13.80
25/1/2010 530621 Akar Tools SANJAY KOTHARI B 79400 42.30
25/1/2010 530621 Akar Tools SANJAY KOTHARI HUF S 79400 42.30
25/1/2010 532664 Amar Remedies SHEELA SUNIL KOTHARI B 133000 59.75
25/1/2010 532664 Amar Remedies REKHA LALIT KOTHARI B 140000 59.75
25/1/2010 532664 Amar Remedies LALIT JEETMAL KOTHARI S 140000 59.75
25/1/2010 532664 Amar Remedies SUNIL JEETMAL KOTHARI S 133000 59.75
25/1/2010 505506 Axon Infotech ABSOLUTE LEASING & FINANCE PVT LTD B 27000 26.65
25/1/2010 505506 Axon Infotech CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 9344 26.72
25/1/2010 505506 Axon Infotech VIJAY PODDAR HUF S 4066 26.65
25/1/2010 505506 Axon Infotech TRIPTI VYAPAAR PRIVATE LIMITED S 4741 26.65
25/1/2010 505506 Axon Infotech SHIV PRAKASH ROONGTA S 3400 26.65
25/1/2010 505506 Axon Infotech WINWIN SECURITIES PVT LTD S 10125 26.65
25/1/2010 505506 Axon Infotech CHIMANLAL MANEKLAL SECURITIES PVT.LTD S 9344 26.73
25/1/2010 531591 Bampsl Sec KAUSHALYA GARG B 1715042 1.02
25/1/2010 531591 Bampsl Sec KAUSHALYA GARG S 650000 0.95
25/1/2010 531591 Bampsl Sec SUNILKUMAR GUPTA S 404001 1.00
25/1/2010 531591 Bampsl Sec SUNDER DASS AGARWAL S 1217541 1.00
25/1/2010 531591 Bampsl Sec GIRRAJ PRASAD GUPTA S 386696 1.02
25/1/2010 531261 Concurrent India ABSOLUTE LEASING & FINANCE PVT LTD S 854363 10.28
25/1/2010 505426 Dagger Forst PREM TRUPTI BUILDERS AND DEVELOPERS PVT LTD B 60954 13.97
25/1/2010 505426 Dagger Forst OMPRAKASH DHARAMNARAYAN AGARWAL S 102200 13.94
25/1/2010 511668 Fact Enterprise ANGEL INFIN PRIVATE LIMITED B 139402 24.00
25/1/2010 511668 Fact Enterprise ANGEL INFIN PRIVATE LIMITED S 159426 24.01
25/1/2010 590024 Fert & Chem Trv TRANSGLOBAL SECURITIES LTD. B 405233 70.77
25/1/2010 590024 Fert & Chem Trv MUKESH KUMAR BACHHAWAT B 38285 70.91
25/1/2010 590024 Fert & Chem Trv LATIN MANHARLAL SEC.PVT.LTD. B 150761 70.98
25/1/2010 590024 Fert & Chem Trv A.A.DOSHI SHARE & STOCK BROKERS LTD B 57596 71.26
25/1/2010 590024 Fert & Chem Trv TRANSGLOBAL SECURITIES LTD. S 403018 70.81
25/1/2010 590024 Fert & Chem Trv MUKESH KUMAR BACHHAWAT S 38285 71.11
25/1/2010 590024 Fert & Chem Trv LATIN MANHARLAL SEC.PVT.LTD. S 156346 71.00
25/1/2010 590024 Fert & Chem Trv A.A.DOSHI SHARE & STOCK BROKERS LTD S 59596 71.18
25/1/2010 500145 First Leasing DIMPLE OBEROI B 184036 64.77
25/1/2010 514167 Ganesh Poly ASHISH CHUGH B 50000 37.50
25/1/2010 530945 Gangotri Iron RAJA MOHAMAD BIN MAIDEN S 50000 38.32
25/1/2010 531863 Gee Kay Finance GOPALA PILLAI VIJAY KUMAR B 2200000 61.75
25/1/2010 531863 Gee Kay Finance SALYA PVT. LTD S 2170000 61.75
25/1/2010 505712 Gujarat Auto HITESH SHASHIKANT JHAVERI S 1772 359.49
25/1/2010 532761 HOV Serv OPG SECURITIES P LTD B 90140 91.24
25/1/2010 532761 HOV Serv OPG SECURITIES P LTD S 90140 91.31
25/1/2010 532658 Indo Asian Fuse PKR HITECH INDUSTRIAL COPORATION LLP B 245000 64.27
25/1/2010 532658 Indo Asian Fuse VPM INDUSTRIAL CORPORATION LLP S 245000 64.27
25/1/2010 522183 ITL Inds SETU SECURITIES PVT LTD B 47599 72.13
25/1/2010 522183 ITL Inds VIJIT SHARES AND COMMODITIES PVT LTD B 17008 72.19
25/1/2010 522183 ITL Inds NARESHCHAND JAIN B 24902 71.15
25/1/2010 522183 ITL Inds KALPANA MADHANI SECURITIES PVT. LTD. B 22376 71.56
25/1/2010 522183 ITL Inds BP FINTRADE PRIVATE LIMITED B 40120 72.20
25/1/2010 522183 ITL Inds SETU SECURITIES PVT LTD S 38578 71.52
25/1/2010 522183 ITL Inds VIJIT SHARES AND COMMODITIES PVT LTD S 17008 72.11
25/1/2010 522183 ITL Inds NARESHCHAND JAIN S 24902 71.33
25/1/2010 522183 ITL Inds BULBUL AHMED S 100250 65.96
25/1/2010 522183 ITL Inds BP FINTRADE PRIVATE LIMITED S 40122 72.18
25/1/2010 524731 Jenburkt Pharma NISHANT LAXMIKANT THAKKAR B 24000 48.78
25/1/2010 532283 Kaashyap Tech HITEN MEHTA B B 2351859 0.68
25/1/2010 532283 Kaashyap Tech HITEN MEHTA B S 2310560 0.70
25/1/2010 530955 Kailash Ficom ANJUDEVI SARAF S 100000 79.99
25/1/2010 530955 Kailash Ficom NILESH KRUSHNA PALANDE S 75665 79.90
25/1/2010 530255 KAY Power KAUSHALYA GARG B 216048 16.87
25/1/2010 530255 KAY Power BAMPSL SECURITIES LTD. B 161300 15.78
25/1/2010 530255 KAY Power LAXMI DEVI B 60000 15.60
25/1/2010 530255 KAY Power SUNIL KUMAR GUPTA B 72332 16.92
25/1/2010 530255 KAY Power SUNDER DASS AGARWAL B 100000 16.11
25/1/2010 530255 KAY Power B.S.KHANDELWAL B 160000 15.59
25/1/2010 530255 KAY Power KAUSHALYA GARG S 615679 15.61
25/1/2010 530255 KAY Power BAMPSL SECURITIES LTD. S 193044 16.58
25/1/2010 530145 Kisan Mouldings PARIWAR HOUSING FINANCE CO LTD S 50000 54.43
25/1/2010 590111 MASTER SITHA BURUGULA S 28880 55.88
25/1/2010 590111 MASTER P T N V AMBICA RAMASUDARSAN S 39400 54.63
25/1/2010 532986 Niraj Cement RAJARAM VISHWAS PATIL B 90569 45.28
25/1/2010 532986 Niraj Cement RAJARAM VISHWAS PATIL S 90569 46.00
25/1/2010 590090 Octant Inter ANGEL INFIN PRIVATE LIMITED B 499992 13.48
25/1/2010 590090 Octant Inter ABSOLUTE LEASING & FINANCE PVT LTD B 260000 13.38
25/1/2010 590090 Octant Inter PRASHANT SHASHIKANT SAWANT S 387500 13.44
25/1/2010 590090 Octant Inter ANGEL INFIN PRIVATE LIMITED S 499992 13.48
25/1/2010 590090 Octant Inter SANDESH NARAYAN PAWAR S 387500 13.50
25/1/2010 590090 Octant Inter ABSOLUTE LEASING & FINANCE PVT LTD S 260000 13.47
25/1/2010 511702 Parsharti Inv KRUPA SANJAY SONI B 37492 35.96
25/1/2010 511702 Parsharti Inv BHAVESH SHANTILAL TRIVEDI B 19000 33.99
25/1/2010 511702 Parsharti Inv AXIOM CAPITAL ADVISORS PRIVATE LIMITED B 30725 35.63
25/1/2010 511702 Parsharti Inv KRUPA SANJAY SONI S 39696 36.07
25/1/2010 511702 Parsharti Inv BHAVESH SHANTILAL TRIVEDI S 19000 37.28
25/1/2010 511702 Parsharti Inv AXIOM CAPITAL ADVISORS PRIVATE LIMITED S 30725 35.52
25/1/2010 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA S 71255 33.41
25/1/2010 533083 RISHABHDEV BHAVISH DHIRAJLAL KHAKHKHAR B 166916 14.77
25/1/2010 533083 RISHABHDEV FORT SHARE BROKING PVT LTD. S 200000 14.78
25/1/2010 533083 RISHABHDEV BHAVISH DHIRAJLAL KHAKHKHAR S 190590 14.52
25/1/2010 519031 Shah Foods VIRENDRABHAI CHHOTABHAI DESAI B 3000 34.91
25/1/2010 511754 Shalibhadra Fin KALA HOLDINGS PRIVATE LIMITED B 51217 16.38
25/1/2010 526981 Shri Bajrang ANANT PRAKASH KABRA S 52987 34.73
25/1/2010 531841 Subuthi Finance NILA HITESH SHAH B 25353 47.76
25/1/2010 526133 Supertex Inds NITABEN SHAILESHBHAI PATEL S 505051 3.94
25/1/2010 531638 Suraj Stainl MUKESH RAGHUNATHMALJI CHANDAN B 85100 68.05
25/1/2010 517534 SV Electricals ARUNKUMAR GADODIA HUF B 30000 28.85
25/1/2010 517534 SV Electricals BINDU GADODIA B 30000 28.85
25/1/2010 517534 SV Electricals MONIKA ARUNKUMAR GADODIA B 30000 28.85
25/1/2010 517534 SV Electricals ARPIT GUPTA HUF S 30000 28.85
25/1/2010 517534 SV Electricals RAMESH KHEMANI S 80000 28.85
25/1/2010 533121 THINKSOFT REGENT FINANCE CORPORATION PVT. LTD. B 60531 478.73
25/1/2010 533121 THINKSOFT A K G STOCK BROKERS PRIVATE LIMITED B 138197 477.90
25/1/2010 533121 THINKSOFT SURESH AMULAKHBHAI SHAH B 62031 474.14
25/1/2010 533121 THINKSOFT REGENT FINANCE CORPORATION PVT. LTD. S 60531 482.24
25/1/2010 533121 THINKSOFT A K G STOCK BROKERS PRIVATE LIMITED S 138197 477.46
25/1/2010 533121 THINKSOFT SURESH AMULAKHBHAI SHAH S 62031 484.24
25/1/2010 590093 TRIMURTHI DR FULLBLOOM INVESMENTS PRIVATE B 1000000 5.93
25/1/2010 500231 Umang Dairies HITESH SHASHIKANT JHAVERI B 64371 25.55
25/1/2010 500231 Umang Dairies HITESH SHASHIKANT JHAVERI S 64371 25.51
25/1/2010 531831 Unisys Soft G M HOLDINGS PVT LTD S 125000 16.74
25/1/2010 531831 Unisys Soft CHITRAKUT HOLDING LTD. S 200000 16.74
25/1/2010 531831 Unisys Soft DB (INTL) OWN TRADING S 200000 16.74
25/1/2010 531831 Unisys Soft SAROJ KOTHARI S 176317 16.75
25/1/2010 507410 Walchandnagar OPG SECURITIES P LTD B 207549 279.64
25/1/2010 507410 Walchandnagar OPG SECURITIES P LTD S 207549 279.70
25/1/2010 531249 Well Pack Papers SHOBHNABEN R PARMAR B 28550 410.54
25/1/2010 531249 Well Pack Papers PANDYA YAMINIBEN M B 47809 410.86
25/1/2010 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR B 50934 410.91
25/1/2010 531249 Well Pack Papers SHREEDHAR YELLAIAH KODAM B 24000 410.45
25/1/2010 531249 Well Pack Papers HARDIK MAHESHBHAI PANDYA B 26000 410.39
25/1/2010 531249 Well Pack Papers NIOL IMPEX PRIVATE LIMITED B 23500 409.97
25/1/2010 531249 Well Pack Papers SHOBHNABEN R PARMAR S 30968 410.73
25/1/2010 531249 Well Pack Papers PANDYA YAMINIBEN M S 52777 410.76
25/1/2010 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR S 50958 410.99
25/1/2010 531249 Well Pack Papers SANTOSH VISHRAM GHADSHI S 26000 410.15
25/1/2010 531249 Well Pack Papers NAVNATH SAKHARAM GHONE S 24000 410.14
* B - Buy, S - Sell
NSE Bulk Deals to Watch - Jan 25 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
25-JAN-2010,HYDRBADIND,Hyderabad Industries Ltd,HSBC MUTUAL FUND,BUY,54000,627.70,-
25-JAN-2010,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,7582759,21.11,-
25-JAN-2010,ITI,ITI Ltd.,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,128891,60.85,-
25-JAN-2010,ITI,ITI Ltd.,OM INVESTMENTS,BUY,192375,60.63,-
25-JAN-2010,ITI,ITI Ltd.,PRASHANT JAYANTILAL PATEL,BUY,107054,61.38,-
25-JAN-2010,KSERAPRO,K Sera Sera Productions L,SUSHMA KAPUR (PROP. SHIVAM INVESTMENT),BUY,1668000,13.12,-
25-JAN-2010,RKFORGE,Ramkrishna Forgings Ltd,RAMKRISHNA FORGINGS EMPLOYEE WELFARE TRUST,BUY,492446,137.05,-
25-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,159037,477.74,-
25-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,AMAR KANAIYALAL CHAUHAN,BUY,107042,476.27,-
25-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,CPR CAPITAL SERVICES LTD.,BUY,92819,478.28,-
25-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,REGENT FINANCE CORPORATION PVT. LTD.,BUY,97607,480.51,-
25-JAN-2010,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,7807237,21.10,-
25-JAN-2010,ITI,ITI Ltd.,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,126849,60.71,-
25-JAN-2010,ITI,ITI Ltd.,OM INVESTMENTS,SELL,192375,60.67,-
25-JAN-2010,ITI,ITI Ltd.,PRASHANT JAYANTILAL PATEL,SELL,107054,61.87,-
25-JAN-2010,RKFORGE,Ramkrishna Forgings Ltd,BASUKI PORTFOLIO PRIVATE LIMITED,SELL,500000,137.05,-
25-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,159037,478.54,-
25-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,AMAR KANAIYALAL CHAUHAN,SELL,107042,480.27,-
25-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,CPR CAPITAL SERVICES LTD.,SELL,92819,478.37,-
25-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,REGENT FINANCE CORPORATION PVT. LTD.,SELL,99607,483.42,-
More cloud than silver lining
Today's major news
Gujarat NRE Coke’s Q3 net profit doubles; the stock jumps 2.60%
HCL Technologies’ Q2 net profit down at Rs296.8 crore; the stock tumbles 5.68%
LIC Housing’s bottom line grew by 14%; the stock ends the day 0.40% lower
Shree Renuka Sugars approves bonus issue; the stock surges 2.22%
J. Kumar Infraprojects bags orders; the stock shots up 4.76%
Click here for more stories
Post-market summary
Global signals
European indices were trading weak in morning trades, as energy stocks fell the most. At the time of writing this report, FTSE 100 was trading down marginal 0.24%.
All Asian indices closed lower. Nikkei hits four week closing low. SGX Nifty closed 9 points lower.
US stock futures opened higher on Friday after sharp sell-off in the last week.
Indian indices
The bears continue to hit back the market on fourth straight session. The Sensex opened 12 points lower at 16847 and continued its southward journey to touch the day’s low of 16705. However it recovered the losses in afternoon and touched the day’s high of 16877. Towards the close, lower than expected results of Mahindra & Mahindra drag the Sensex back to red zone. The Sensex ended the session 79 points lower at 16780 whereas Nifty shed 28 points to close at 5008.
Market sentiment
The market breadth was negative, with the losers outnumbering the gainers. Of the 2,913 stocks traded on the BSE, 1,747 stocks declined, 1,105 stocks advanced and 61 stocks ended unchanged.
Sectoral & stock screening
Overall, bears were in firm control. Only fast moving consumer goods (FMCG) and capital goods drew investor interest with the BSE FMCG up by 1.14% and BSE CG 0.425 higher. Realty and automobile industry were hit the most with the BSE Realty and BSE Auto down by 2.88% and 2.14% respectively. The remaining indices were down by less than 2%.
Leveraging investor interest in FMCG stocks, Hindustan Unilever moved up 2.35% and ITC advanced 2.21%, occupying No2 and No 3 slot among the 30 Sensex stocks. The top slot went to Bharti Airtel that gained 2.86% for the day. Among laggards, Mahindra & Mahindra declined 5.24%, Jaiprakash Associates tumbled 3.27%, DLF lost 2.77%, and Tata Steel plunged 2.24%.
Viewing volumes
With investors seeing high probability of government selling its stake in the public sector unit Rashtriya Chemicals and Fertilisers, over 1.06 crore shares changed hands on the BSE—the highest for any stock. This was followed by Ispat Industries (0.86 crore shares) wind turbine major Suzlon Energy (0.74 crore shares), Jai Corp (0.70 crore shares), India’s second biggest realty company Unitech (0.51 crore shares).
Sensex falls 4.87% in last five days
The key benchmark indices extended losses for the fifth straight session with weak global cues playing the spoilsport. High volatility was the hallmark of the day's trading session. However, firm US index futures cushioned steep losses. The BSE 30-share Sensex fell 79.22 points or 0.47%, up 75 points from the day's low and off 100 points from the day's high. From the recent high of 17,641.08 on 18 January 2010, Sensex fell 860.62 points or 4.87% to 16,780.46 on Monday, 25 January 2010. The market remains closed on Tuesday, 26 January 2010 on account of republic day holiday.
The undertone was cautious ahead of derivatives expiry, RBI's monetary policy and earnings from frontline companies. Weak global cues had played the spoilsport in early trade. US stocks tumbled in their worst three-day slide in 10 months on Friday, pulling Asian stocks lower today, 25 January 2010. European markets, were lower. The S&P CNX Nifty, which crashed below the psychological 5,000 mark in opening trade, regained that level in late trade. The market breadth was negative after a positive start.
Aggregate results of 670 Indian companies showed 50% advance in net profit on 20% rise in sales in quarter ended December 2009 over the quarter ended December 2008.
Core sector, which comprises six key infrastructure industries, grew 6% in December 2009, compared with 5.3% growth in November 2009. The growth, signifying a recovery in industrial manufacturing, was primarily led by an increase in the production of finished steel, cement and electricity last month. The core sector growth stood at 0.7% in December 2008, due to the economic slowdown.
The sector, which accounts for 26.7% of the index of industrial production (IIP), grew 4.8% in April-December 2009 period, against 3.2% in the corresponding period of 2008-09, the commerce and industry ministry data showed on 23 January 2010.
Meanwhile India will get a $770 million loan from the World Bank for three projects in the southern state of Andhra Pradesh, the finance ministry said in a statement on Friday, 22 January 2010. With these new loan agreements, the multilateral agency's total ongoing commitment to India has increased to $19.38 billion, the statement added. In the current fiscal year to end-March 2010, the World Bank has committed fund assistance worth $5.5 billion to India.
As per reports, the government is considering an across-the-board increase in excise duty in Budget 2010-11, as it faces pressure to withdraw fiscal stimulus measures in the wake of a 16-year high fiscal deficit of 6.8% in the current financial year. One option being considered is an increase in Cenvat rate by 2% while leaving the service tax rate unchanged at 10%, reports citing an unnamed finance ministry official indicated. Cenvat refers to the median excise duty, tax on manufacture of goods, levied on nearly 90% of the goods made in the country.
Also more services could be brought under the tax net to allow the government to keep service tax rates unchanged. An alternative proposal is also under consideration which seeks an increase in excise rates in sectors that are doing well such as automobiles, instead of an across-the-board hike.
Equities are likely to 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 (RBI) 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.
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.
European shares were trading lower today, 25 January 2010 weighed by banking stocks. Key benchmark indices in UK, Germany were down by between 0.15% 0.34%. But France's CAC 40 rose 0.22%.
Asian stocks fell for the sixth straight day as concern mounted that a US government plan to limit risk-taking at financial companies will reduce profits and derail a global economic recovery. Key benchmark indices in China, Taiwan, Hong Kong, South Korea, Japan, Singapore were down by between 0.28% and 1.09%.
US stocks tumbled in their worst three-day slide in 10 months on Friday, 22 January 2010, on fears the White House's plan to curb bank risk-taking would cut profits and a drop in tech shares after Google Inc's disappointing results.
The Dow Jones industrial average dropped 216.90 points, or 2.09%, to 10,172.98. The Standard & Poor's 500 Index slid 24.72 points, or 2.21%, to 1,091.76. The Nasdaq Composite Index fell 60.41 points, or 2.67%, to 2,205.29.
In the three day selloff, the Dow lost 5.1%, the S&P lost 5.1% and the Nasdaq lost 5%.
Uncertainty about the Senate's confirmation of Ben Bernanke for another term as the Federal Reserve's chairman also rattled investors in a week when political squabbles helped erase stocks' gains for 2010.
Aside from worrying about how the Obama administration's proposals might hurt bank profits, investors also fretted about the likely impact of China's efforts to prevent the world's third-largest economy from overheating. Since China has led the nascent global economic recovery, any curbs it puts on lending threatens to slow demand that other economies, including the United States, had relied upon to spur their own growth.
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.
Trading in US index futures showed the Dow could rise 92 points at the opening bell on Monday, 25 January 2010.
Back home, the BSE 30-share Sensex fell 79.22 points or 0.47% to 16,780.46. The Sensex opened 11.98 points lower at 16,847.70. At the day's low of 16,705.56 the Sensex declined 154.12 points in mid-morning trade. Sensex rose 18.09 points at the day's high of 16,877.77 in mid-afternoon trade.
The S&P CNX Nifty fell 28.10 points or 0.56% to 5007.90. The Nifty crashed below the psychological 5,000 mark to hit a low of 4983.05 in opening trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1748 shares declined as compared with 1107 that rose. A total of 60 shares remained unchanged. Breadth was positive in morning session.
BSE clocked a turnover of Rs 4812 crore lower than Rs 6560.62 crore on Friday, 22 January 2010.
Among the 30-member Sensex pack, 17 declined while the rest gained.
The BSE Mid-Cap index fell 1.3% and the BSE Small-Cap index fell 0.9%. Both the indices underperformed Sensex.
India's largest motorbike maker by sales Hero Honda Motors fell 1.48%. The company's net profit surged 78.34% to Rs 535.77 crore in Q3 December 2009 over Q3 December 2008. The company announced the result after market hours today.
India's largest tractor maker by sales Mahindra and Mahindra (M&M) plunged 5.24% after it reported lower-than-expected earnings for the latest quarter ended December 2009. It was the top loser from the Sensex pack.
M&M's net profit surged 849% to Rs 413.70 crore on a 56.32% rise in sales to Rs 4478.70 crore in Q3 December 2009 over Q3 December 2008. The result was announced during trading hours on Monday, 25 January 2010. Meanwhile, the company on Monday approved a 2-for-1 stock split.
India's top small car maker by sales Maruti Suzuki India rose 0.39%. The company reported higher than expected earnings in the third quarter. Its net profit surged 221.92% to Rs 687.53 crore on a 62.50% rise in sales to Rs 7372.65 crore in Q3 December 2009 over Q3 December 2008. The result was announced on Saturday, 23 January 2010.
Shares related to the infrastructure sector declined as investors continued to dump them on concerns of high valuation and poor financials. Jaiprakash Associates, IVRCL Infrastructure & Projects, Era Infra Engineering fell by between 0.44% to 5.01%.
However India's largest engineering & construction firm by sales Larsen & Toubro (L&T) rose 1.24%. The stock halted a two-day slide triggered 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.
Rate sensitive realty shares declined ahead of the RBI's quarterly monetary policy review meet on 29 January 2010. DLF (down 2.54%), Unitech, HDIL, Indiabulls Real Estate and Parsvnath Developers fell by between 2.77% to 5.02%.
Power generation stocks declined as investors shuffled their portfolios ahead of the upcoming mega follow-on-public (FPO) offer of NPTC. Tata Power Company, Torrent Power, CESC, Reliance Power fell by between 0.5% to 1.19%.
However, India's largest power generation firm by total capacity NTPC rose 0.52%. 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 last week said he expects an upcoming sale of its shares by the government to raise up to Rs 12,000 crore.
Metal stocks declined, extending Friday's fall on profit booking. The fall came despite LMEX, a gauge of six metals traded on the London Metal Exchange, rising 0.25% on Friday, 22 January 2010.
Tata Steel, Jindal Stainless, Sail, Sesa Goa and National Aluminum Company fell by between 0.54% to 2.24%.
Sterlite Industries fell1.19% . The company's consolidated net profit rose 42% to Rs 731 crore in Q3 December 2009 over Q3 DEcember 2008. The company announced the result after market hours today.
Hindalco Industries (down 1.46%), declined ahead of its Q3 earnings today, 25 January 2010.
Private sector banking shares declined as investors turned cautious on rate sensitive stocks ahead of the Reserve Bank of India's monetary policy review meet on 29 January 2010.
India's second largest private sector bank by net profit HDFC Bank fell 1.3% following a 3.49% slide in its ADR on Friday. India's largest private sector bank by net profit ICICI Bank lost 1.08%.
However, India's largest bank by net profit and branch network State Bank of India rose 0.15%. The bank's net profit remained unchanged at Rs 2479 crore in Q3 December 2009 over Q3 December 2008. The bank announced the result after market hours today.
Telecom shares were mixed after the government has amended overseas borrowing rules allowing winners in an upcoming 3G wireless spectrum auction to pay the fee in rupees, which could be later refinanced by overseas borrowing within 12 months.The move will help telecom companies to raise funds from the domestic market for the payment upfront, and give them flexibility to refinance the fee through cheaper overseas borrowings later. The government is expected to complete the 3G auction by March 2010.India's largest cellular services provider by sales Bharti Airtel gained 2.86% and was the top gainer from the Sensex pack. 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 22 January 2010.
However India's second largest cellular services provider by sales Reliance Communications lost 1.57%. The company will declare its Q3 December 2009 earnings on 30 January 2010.
Select FMCG shares gained on defensive buying as investors shuffled portfolio to low beta stocks with the market fall extending to fifth-day today.
India's largest FMCG firm by sales Hindustan Unilever gained 2.35%. The company announces its Q3 December 2009 earnings on 26 January 2010.
India's largest cigarette maker by sales ITC rose 2.21% 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 on 22 January 2010.
Diversified major Grasim Industries rose 0.42% after the company posted 80.81% spurt in net profit to Rs 595.88 crore on a 14.79% rise in sales to Rs 3051.89 crore in Q3 December 2009 over Q3 December 2008. The result was announced after market hours on Friday, 22 January 2010.
Index heavyweight Reliance Industries (RIL) fell 1.09%. The company'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 22 January 2010.
IT stocks declined following Google Inc's disappointing results and on fears the Obama administration's bank plan will crimp outsourcing demand.
India's second largest IT exporter by sales Infosys fell 1.37%. India's third largest software services exporter Wipro lost 0.74%. India's largest IT exporter by sales Tata Consultancy Services was flat at Rs 755.75.
HCL Technologies lost 5.68% after net profit declined 15.07% to Rs 255.44 crore on 2.78% fall in total income 1259.22 crore in Q2 December 2009 over Q1 September 2009. The company declared results before trading hours today, 25 January 2010.
Cals Refineries clocked the highest volume of 1.71 crore shares on BSE. Rashtriya Chemicals & Fertilisers (1.06 crore shares), K Sera Sera (0.89 crore shares), Ispat Industries (0.86 crore shares), National Fertilizer (0.79 crore shares) were the other volume toppers in that order.
Jai Corp clocked the highest turnover of Rs 212.03 crore on BSE. Hindustan Copper (Rs 155.46 crore), Rashtriya Chemicals & Fertilisers (Rs 115.54 crore), National Fertilizer (Rs 101.92 crore) and Havells India (Rs 99.84 crore) were the other turnover toppers in that order.
Daily Latest Grey Market Premium - Jan 25 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) |
| Jubilant Food Works | 135 to 145 | 20 to 21 | -- |
| Infinite Computer | 165 | 33 to 35 | -- |
| Birla Shloka | 45 to 50 | Discount | -- |
| Aqua Logistics | 220 to 230 | 12 to 13 | 2050 to 2100 |
| Syncom Healthcare | 65 to 75 | 6 to 6.50 | 1950 to 2000 |
| Thangamayil Jewellery | 70 to 75 | 3.50 to 4 | 1850 to 1900 |
| Vascon Engg. | 165 to 185 | 20 to 21 | 1900 to 1950 |
Market seen extending four-day losses on weak global cues
The market is seen extending last four days' losses on weak global cues. US stocks tumbled in their worst three-day slide in 10 months on Friday, pulling Asian stocks lower today, 25 January 2010. The S&P CNX Nifty futures for January 2010 expiry were trading 19 points lower in Singapore.
State Bank of India, Sterlite Industries, Mahindra and Mahindra, Hero Honda Motors, and Hindalco Industries are among the key result announcements on Monday, 25 January 2010.
Maruti Suzuki India reported higher than expected earnings in the third quarter. Its net profit surged 221.92% to Rs 687.53 crore on a 62.50% rise in sales to Rs 7372.65 crore in Q3 December 2009 over Q3 December 2008.
Net profit of Grasim Industries rose 80.81% to Rs 595.88 crore in on a 14.79% rise in sales to Rs 3051.89 crore in Q3 December 2009 over Q3 December 2008. Aggregate results of 599 Indian companies showed 57.1% advance in net profit on 20.40% rise in sales in quarter ended December 2009 over the quarter ended December 2008.
Asian stocks fell for a sixth day today echoing fall in Wall Street on Friday. Key benchmark indices in Hong Kong, South Korea, Japan, Singapore were down by between 0.27% and 1.20%. Shanghai Composite rose 0.08% and Taiwan Weighted gained 0.06%.
US stocks tumbled in their worst three-day slide in 10 months on Friday, 22 January 2010, on fears the White House's plan to curb bank risk-taking would cut profits and a drop in tech shares after Google Inc's disappointing results.
Uncertainty about the Senate's confirmation of Ben Bernanke for another term as the Federal Reserve's chairman also rattled investors in a week when political squabbles helped erase stocks' gains for 2010.
The Dow Jones industrial average dropped 216.90 points, or 2.09%, to 10,172.98. The Standard & Poor's 500 Index slid 24.72 points, or 2.21%, to 1,091.76. The Nasdaq Composite Index fell 60.41 points, or 2.67%, to 2,205.29.
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.
Back home, key benchmark indices extended their losses for the fourth straight session on Friday, 22 January 2010 after US President Barack Obama proposed limiting risk-taking at US banks. The BSE 30-share Sensex settled 191.46 points or 1.12% lower at 16,859.68, below the psychological 17,000 mark.
As per provisional figures on NSE, the foreign funds sold shares worth Rs 2415.49 crore and domestic funds bought shares worth Rs 1953.97 crore on Friday, 22 January 2010.
Daily News Roundup - Jan 25 2010
Maruti Suzuki announced that it would invest Rs17bn in a second line at its Manesar factory; new line would start operations by April 2012. (BL)
DLF exits asset management venture with Prudential Financial. (BL)
Bharti Airtel said that it is looking at listing one of its tower units Bharti Infratel or Indus in the next fiscal. (BL)
Larsen & Toubro formed a joint venture with Malaysia-based Sapuracrest Petroleum to install pipelines and construct offshore rigs and platforms in India, the Middle East and South East Asia. (ET)
Lupin is planning to set up three new manufacturing facilities at an investment of Rs2bn. (BS)
Suzlon Energy plans not to proceed with proposed Rs5bn wind energy projects at two locations in Punjab. (ET)
LIC acquires nearly 2% stake in Essar Oil for Rs3.09bn through open market transactions. (ET)
Biocon signs MoU with Malaysia’s Biotechnology Corporation to explore collaboration and potential investment in Malaysia’s biotechnology industry. (BS)
Wockhardt sells nearly 18 acres of land at Mulund for Rs2bn to Runwal Group, and a real estate fund. (ET)
Piramal Healthcare is looking to review its plans to set up a new unit to make codeine. (ET)
DLF sells its 15-acre property in Bangalore suburb. (ET)
GMR Hyderabad to provide MRO services for Jet Airways. (BL)
JK Paper board approves Rs15bn expansion. (BL)
Usha Martin raises Rs4.7bn through QIP. (BL)
JK Tyre has decided to set up a Rs16bn automotive tyre manufacturing facility in Tamil Nadu. (BL)
Unity Infraprojects plans to develop two mixed-use housing projects with an investment of around Rs500 crore. (ET)
Karnataka Bank raises Rs1.6bn through QIP. (BL)
Tata Teleservices has overtaken BSNL to become the fifth largest mobile operator in terms of subscriber base. (BL)
Apollo Hospitals signs MoU with the Maldives government to mange the Indira Gandhi Memorial Hospital at Maldives. (BS)
Tata Steel and NMDC sign an MoU to explore possible areas of strategic alliance, including forming JVs in the fields of steel production and mining in India and oversea. (TOI)
Glenmark arm gets USFDA nod for hypertension drug. (FE)
Godrej Properties said it would invest over Rs10bn in the next fiscal on ongoing and new realty projects. (FE)
Maytas Infra’s new owner IL&FS is negotiating with lenders to convert around Rs6bn of the company’s debt into equity. (TOI
Shipping ministry is evaluating the disinvestment process in SCI and Dredging Corp of India and will take a final call on the issue early-next fiscal. (FE)
Time Technoplast is looking to acquire an industrial packaging company in Europe, preferably in France, Germany or Britain, at an investment of Rs1.15-1.3bn.
HDIL plans to launch its QIP issue next week. (BS)
4G prospects won't keep off telecom companies from bidding for 3G, says Union Minister Mr Raja. (BL)
The six ‘core' infrastructure industries have registered a 6% yoy growth during Dec’ 09 compared with 0.7% a year ago. (BL)
Foreign exchange reserves rose by US$899mn to US$285bn for the week ended January 15. (BL)
Domestic crude oil production in December rose 1.1% yoy to 2.9mn tonnes. (BL)
Petroleum Minister has written to the Finance Minister to consider setting up a fund that will aid domestic PSUs in acquiring oil and gas assets overseas. (BL)
Resilience in the midst of risk!
Investment planning is about structuring exposure to risk factors.
When the main indices come crashing down, suddenly a host of risk factors appear to gain prominence. The market will have to contend with a deluge of earnings, the F&O expiry and the RBI policy. While the Sensex saw its worst weekly loss (of ~700 points) since October 2009, there are a number of mid-caps which have been moving higher, some even hitting upper circuits.
The market will be shut on Tuesday on account of Republic Day. As far as India is concerned, the RBI is most likely to opt for a calibrated hike in policy rates even as the Government mulls partial rollback of duty cuts.
We expect a soft start for the key indices. Friday's commendable recovery in the face of a worldwide sell-off could be tested at start following yet another triple-digit loss for the Dow.
What could possibly save the bulls from further misery would be stronger than expected earnings announced from the likes of RIL, Maruti and ITC. Hopefully, other big results this week will bring in some resilience to the market.
Asian stock indices have extended last week's fall amid worries that the new Obama proposals to restrain large banks from investing in hedge funds could adversely affect global fund flows and risk appetite. Meanwhile, economists say that the ongoing recovery in the US economy can't be sustained. The same could also be said about other industrialised nations.
Among the other big worries is how the impending stimulus withdrawal by policymakers later this year will impact the economic recovery and markets. Possible overheating in China and monetary tightening by Beijing has also been causing a few jitters of late.
The fall on Friday was amid higher volumes. The combined volumes on the BSE and NSE stood at a record Rs1590bn—the highest ever; of this Rs1320bn came from the NSE's derivatives segment.
Results Today: Andhra Bank, Blue Star, Cadila Healthcare, Cummins India, DB Corp., GSK Consumer, Godrej Ind, Gujarat Alkalies, GSPL, HCL Info, HCL Tech, Hero Honda, Hindalco, Hotel Leela, India Cements, Indiabulls Fin, Indiabulls Sec, Jet Airways, KEC Intnl, LMW, LIC Housing, M&M, Pantaloon, Power Grid Cop., SBI, Shyam Tele, Sterlite, TTML, TV Today, Voltas and Wockhardt.
FIIs were net sellers in the cash segment on Friday at Rs24.15bn on a provisional basis. The local funds were net buyers of Rs19.54bn, according to figures published on the NSE's web site. As per the SEBI figures, FIIs were net sellers of Rs5.7bn in the cash segment on Thursday.
US stocks tumbled for a third successive session on Friday as analyst downgrades routed the technology space amid uncertainty over Ben S. Bernanke's confirmation for another term as head of the Federal Reserve.
Worries about the possible ramifications of White House's proposed new restrictions on big banks coupled with growing speculation of further monetary tightening by China continued to cast a shadow on Wall Street.
The Dow Jones Industrial Average slumped 217 points, or 2.1%, to 10,172.98. The S&P 500 index slid 25 points, or 2.2%, to 1,091.76. The Nasdaq Composite index plunged 60 points, or 2.7%, to 2,205.29.
In the three day selloff, the Dow lost 5.1%, the S&P lost 5.1% and the Nasdaq lost 5%.
For the holiday-shortened trading week, the S&P 500 was down 3.9% and the Nasdaq shed 3.6%, with both indexes seeing their biggest one-week declines since the week ended Oct. 30, 2008.
The Dow's weekly loss of 4.1% was the average's worst since the week ended March 6, 2009, when it closed at a 12- year low. That period was considered to be the bottom of the bear market. Since then, the Dow has gained 57%.
In other markets, the dollar lost ground, crude oil prices fell below US$75 per barrel and gold futures slipped.
Selling on Wall Street began on Wednesday on reports that China has asked banks to slow the pace of lending in a bid to pre-empt any spike in inflation and prevent any possible overheating. The fall picked up on Thursday with Obama's fresh offensive against banks and continued on Friday with questions about Bernanke.
US stocks were vulnerable to a pullback after surging over 3% since the start of the year, with the major indices having touched nearly 16-month highs.
Obama called for limiting the size and trading activities of financial institutions as a way to reduce risk- taking and prevent another financial crisis.
The proposals, to be added to an overhaul of regulations being considered by Congress, would prohibit banks from running proprietary trading operations solely for their own profit and sponsoring hedge funds and private equity funds.
Meredith Whitney, an influential banking analyst, said Obama’s plan will probably be approved and may dramatically reduce trading profits.
Morgan Stanley Asia Chairman Stephen Roach said Obama’s plan amounted to "bank bashing" and called on American politicians to take a more balanced approach.
Large banks such as JPMorgan Chase, Goldman Sachs and Bank of America would bear the brunt of the impact from the Obama bank regulations. shares of all three slipped on Friday. But a few of the regional banks, including Fifth Third Bancorp and SunTrust Banks bucked the trend for a second straight session.
General Electric (GE) reported weaker revenue and earnings versus a year ago that nonetheless beat analysts' estimates. GE also reported higher sales and profit versus the previous quarter, with the exception of its struggling NBC Universal unit. Looking forward, GE said it sees solid growth next year. Shares added 0.6%.
Schlumberger shares dropped 4.5% after the world’s largest oilfield-services provider said that fourth-quarter profit fell 31% after oil producers slashed spending during the global recession.
Fellow Dow component McDonald's reported higher quarterly sales and earnings that topped estimates, with strength in international markets offsetting any weakness in its US business. Shares rose 0.3%.
After the close on Thursday, American Express reported higher earnings that beat forecasts on flat revenue that also beat estimates. Nonetheless, shares of the financial services firm lost 8.5% in Friday's trading.
Shares of Google dived 5.7% despite the Internet giant's surge in fourth-quarter earnings. The company's earnings and revenue came in well above analysts' estimates, but investors were probably looking for more.
Also weighing on the technology space was Citigroup's move to cut its ratings on seven semiconductor-equipment stocks, citing the risk of a correction of perhaps 30% in the sector for the short term, though a broader bullish trend remains intact.
A report showed that December jobless rates rose in 43 states and the District of Columbia versus the previous month. The trend marked a reversal from November, when a majority of the states saw unemployment rates dip from the prior month.
Manufacturing in the Philadelphia region expanded in January for a fifth straight month, pointing to a factory rebound that is helping lead the economy out of the recession, according to a report from The Federal Reserve Bank of Philadelphia.
Investors also considered reports that some congressional Democrats are growing skittish about confirming Bernanke to a second term as Fed chairman. Bernanke's term ends in a week, but the Senate lacks the 60 votes to force a confirmation vote.
A failure to confirm Bernanke would really rattle the markets as he is viewed around the world as a positive for the US economy.
The dollar fell versus the euro and the yen after rising for the last few sessions.
COMEX gold for February delivery fell US$13.50 to settle at US$1,089.70 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 slipped US$1.54 to settle at US$74.54 a barrel on the New York Mercantile Exchange.
Treasury prices fell, raising the yield on the 10-year note to 3.61% from 3.69% late on Thursday.
The market could sell off a little more next week, but it is most likely to find a support in the week ahead. A heavy spate of quarterly earnings reports are due next week, with 27% of the S&P 500 or 136 companies scheduled. Among the key ones include Apple, Yahoo, Microsoft, Amazon.com and Chevron.
The Chicago Board Options Exchange's Volatility Index or VIX jumped 6.2% to 23.66, its third straight daily gain, and the longest string of increases since October. The index is on track for a 32% weekly rise.
VIX was boosted by worries that Chinese authorities are a little uncomfortable with the break-neck pace of economic growth. Also, fears over new bank restrictions proposed by the Obama administration, and potential sovereign debt defaults in Europe, have unsettled investors of late.
The markets' reaction to the Obama plan was perhaps knee-jerk and the undertone may improve next week. Stock markets have gained sharply for a long period of time and the selloff was perhaps the sign of a market trying to let off steam.
Bank shares in Europe continued to slide on fears that they would also feel the heat from the Obama administration’s plans to curb excessive risk taking by financial firms. The pan-European Dow Jones Stoxx 600 index dropped 1.1% to end at 249.91, the third straight losing session for the index.
The UK FTSE 100 index declined 0.6% to end at 5,302.99, while the German DAX index settled 0.9% lower at 5,695.32, and the French CAC-40 index finished 1.1% lower at 3,820.78.
Indian markets witnessed its first weekly losses of the year on account of disappointing earnings by L&T and US President Obama’s proposal to put new limits on the size and trading practices of big banks weighed heavily on Dalal Street. Moreover, key indices had largely been consolidating after last year's stupendous rebound, so a correction was long overdue. Finally, the BSE Sensex closed the week lower by 4% and NSE Nifty lost 4.1%.
BSE Sensex hit an intra-week high of 17,712 and low of 16,608 while, NSE Nifty hit an intra-week high of 5,293 and low of 4,955.
The top gainers: The top gainers in the Sensex were Maruti Suzuki (up 2.2%), Bharti Airtel (up 1.5%), Hero Honda (up 1.5%), Hindustan Unilever (up 0.6%) and BHEL (up 0.4%).
The Top Losers: The top losers in the Sensex were L&T (down 10.9%), Ranbaxy Labs (down 9.5%), DLF (down 8.7%), Tata Power (down 8.4%) and Grasim (down 8%).
On Friday, The BSE Sensex fell 191 points to end at 16,859 after touching a high of 17,000 and a low of 16,608. The Nifty fell 58 points to end at 5,036.
Equity markets in Asia ended in the red. The Nikkei in Japan was down 2.5%, while Australia's S&P/ASX ended lower by 1.6%. The Shanghai SE Composite ended flat and Hang Seng index in Hong Kong was down 0.7%.
In Europe, stocks were trading in the red. The DAX in Germany was down 0.5% and the CAC 40 index in France was down 0.3%. The FTSE in the UK was flat.
Coming back to India, the BSE Banking index was the top loser, shedding 1.8%, followed by the Realty index that was down 1.7% and the BSE IT index was down 1.5%. The BSE Mid-Cap index slipped 1.1% while BSE Small-Cap index was down 1%.
Among the 30-components of Sensex 27 ended in the negative terrain and only ITC, HEL and HUL ended in the green. L&T, Infosys, Tata Steel, ICICI Bank and HDFC Bank were among the top losers.
Outside the frontline indices, the big losers in the broader market were REI Agro, Gujarat NRE Coke, Fin Tech, Ispat Ind and Pantaloon Retail. On the other hand, gainers included HCC, NMDC, LITL and Piramal Healthcare.
Dismal week for US stocks at Wall Street
Materials sector registers maximum losses
With stocks witnessing a third consecutive sell-off on Friday, 22 January, 2010, it turned out to be a dismal week for stocks at Wall Street for the week that ended on that day. Earning reports dominated the week but the positive ones also failed to cheer investors. Concerns over financial sector regulation failed to induce buying interest among traders. Economic reports had limited impact on stocks. It was a holiday-shortened week with market being closed on Monday, 18 January, 2010.
For the week, that ended on Friday, 22 January 2010, Dow ended lower by 436.67 points (4.1%) at 10,172.98. Nasdaq ended lower by 82.7 points (3.6%) at 2205.29. S&P500 lost 44.27 points (3.9%) at 1091.76. All ten economic sectors ended in the red led by the materials sector. A large number of notable names reported earnings this week, including five Dow components.
During the week, President Obama proposed some reforms in the financial sector. Obama's plan lacked details, but it was announced that commercial banks will not be allowed to own, invest in or sponsor a hedge fund or a private equity fund. In addition, commercial banks will be prohibited from proprietary trading operations unrelated to serving customers for their own profit.
Several banks reported earnings during the week. The financial sector's losses were compounded by news of regulatory overhauls by the Obama administration. Among the companies in the financial sector that reported earnings were Citigroup, Goldman Sachs and American Express that beat earning estimates. Bank of America and Morgan Stanley missed estimates.
In the other earning space, industry bellwether General Electric reported upside results, as did McDonald's, Google and IBM.
At the end of the day on Friday, 22 January, 2010, stocks closed with steep losses for a third straight day paced by technology shares, which suffered from analyst downgrades and huge earnings expectations. The selling picked up in the afternoon as fears swirled regarding the possibility that Ben Bernanke might not get confirmed to a second term as Federal Reserve Chairman.
On that day, the Dow Jones Industrial Average ended lower by 216.9 points at 10,172.98. Nasdaq ended lower by 60.41 points at 2205.29. S&P 500 ended lower by 24.72 points at 1091.76. All ten sectors ended in the red led by financial, technology and materials sectors.
Losses cumulated at Wall Street despite better than expected earning reports from AMD and Google. Also, Mac Donalds and GE reported good earnings but the stocks ran out of gas by the end of the day.
Crude oil prices dropped significantly on Friday, 22 January 2010. Prices fell as traders mulled over China's tightening of the current monetary policies, which will lead to demand concerns for crude in coming months. Sell-off of US stocks at Wall Street also pressured to declining commodity prices.
On Friday, crude-oil futures for light sweet crude for March delivery closed at $74.54/barrel (lower by $1.54 or 2%). For the week, crude ended lower by 4.7%. On a year to date basis till date, crude is lower by 8%.
In the currency market on Friday, the dollar index, which weighs the strength of dollar against the basket of six other currencies stayed steady against most of its counterparts. The dollar strengthened during the week on fears that China will curb bank lending. The China Banking Regulatory Commission said it hasn't "specifically" told banks to suspend lending in January, but a report said that it had asked several banks to stop issuing loans. The dollar index dropped by a mere 0.2%. The dollar index lost 1.6% for the week.
Barring ICICI Bank, all the Indian ADRs ended in the red on Friday. Wipro Technologies and Punjab Tractors were the largest losers, each shedding almost 4.5%. HDFC Bank shed 3.5%. ICICI Bank added 0.25%.
Earnings reports will continue to pour in the coming week.
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