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Tuesday, February 02, 2010
BSE Bulk Deals to Watch - Feb 2 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
2/2/2010 524412 Aarey Drugs CHETAN KIRITBHAI MEHTA S 25000 42.57
2/2/2010 517356 ACI Infocom CHITRALEKHA RAJNARAYAN GUPTA S 98800 14.60
2/2/2010 530375 Ancent Soft ROHIT REDDY S 30000 3.65
2/2/2010 511605 Arihant Cap NIOL IMPEX PRIVATE LIMITED S 40000 104.38
2/2/2010 533138 ASTEC HITESH SHASHIKANT JHAVERI B 95059 83.25
2/2/2010 533138 ASTEC HITESH SHASHIKANT JHAVERI S 95143 83.25
2/2/2010 533138 ASTEC LOTUS GLOBAL INVESTMENTS LIMITED S 136575 82.50
2/2/2010 505506 Axon Infotech ABSOLUTE LEASING & FINANCE PVT LTD S 5000 25.20
2/2/2010 531591 Bampsl Sec KAUSHALYA GARG S 500000 0.92
2/2/2010 532694 Bartronics CASPIAN PROJECTS PVT LTD B 176000 161.37
2/2/2010 531337 Channel Guide RAJENDRA SHARAD KARNIK S 50000 17.53
2/2/2010 511636 DJS Stock KAUSHIK SHAH SHARES & SEC. LTD S 69500 36.65
2/2/2010 511668 Fact Enterprise JMP SECURITIES PVT LTD B 76278 19.42
2/2/2010 511668 Fact Enterprise PRITESH PRAVIN VORA B 30000 18.75
2/2/2010 511668 Fact Enterprise ANGEL INFIN PRIVATE LIMITED B 48000 19.94
2/2/2010 511668 Fact Enterprise ANGEL INFIN PRIVATE LIMITED S 100127 18.97
2/2/2010 511668 Fact Enterprise JMP SECURITIES PVT LTD S 76278 19.62
2/2/2010 511668 Fact Enterprise PRITESH PRAVIN VORA S 30000 20.13
2/2/2010 511668 Fact Enterprise MERRILL LYNCH CAPITAL MARKETS ESPANA SA SV S 57033 19.43
2/2/2010 590024 Fert & Chem Trv LATIN MANHARLAL SEC.PVT.LTD. B 97617 68.16
2/2/2010 590024 Fert & Chem Trv R B K SHARE BROKING LIMITED B 64239 67.90
2/2/2010 590024 Fert & Chem Trv JMP SECURITIES PVT LTD B 45094 68.91
2/2/2010 590024 Fert & Chem Trv EKTA K VORA B 48000 67.84
2/2/2010 590024 Fert & Chem Trv PASHUPATI CAPITAL SERVICE PVT LTD B 38592 67.70
2/2/2010 590024 Fert & Chem Trv TRANSGLOBAL SECURITIES LTD. B 179239 67.95
2/2/2010 590024 Fert & Chem Trv TRANSGLOBAL SECURITIES LTD. S 179279 67.98
2/2/2010 590024 Fert & Chem Trv PASHUPATI CAPITAL SERVICE PVT LTD S 38592 67.79
2/2/2010 590024 Fert & Chem Trv R B K SHARE BROKING LIMITED S 82244 67.52
2/2/2010 590024 Fert & Chem Trv LATIN MANHARLAL SEC.PVT.LTD. S 97617 68.17
2/2/2010 513579 Foundry Fuel SAVITRI DEVI SATNALIWALA B 56348 11.99
2/2/2010 513579 Foundry Fuel NARAYANI LAXMI VINIYOG P LTD S 56348 11.99
2/2/2010 530469 GSL Securities ARANIK SECURITIES PRIVATE LIMITED B 20000 5.38
2/2/2010 523467 Jai Mata Glass HITESH SHASHIKANT JHAVERI B 150003 2.92
2/2/2010 530955 Kailash Ficom GAJRAJ JAIN HUF S 90000 75.38
2/2/2010 530145 Kisan Mouldings PARIWAR HOUSING FINANCE CO LTD S 40000 69.76
2/2/2010 531602 Koffee Break VIJAY GULABCHAND DESAI B 374099 2.61
2/2/2010 503685 Mediaone Global MURALI MANOHAR SUNANDA B 100150 95.64
2/2/2010 503685 Mediaone Global SHREEPATHEE INVESTMENTS. PVT LTD S 100000 95.64
2/2/2010 531496 Omkar Overseas HARESH JAYANTILAL MEHTA HUF B 25000 47.10
2/2/2010 531496 Omkar Overseas FUTURE ZONE ENTERTAINMENT PVT S 75000 46.63
2/2/2010 526747 PG Foils KISHAN MOHTA B 50000 45.40
2/2/2010 526747 PG Foils KISHAN MOHTA S 49100 45.40
2/2/2010 500357 Rama Paper EXCEL ENTERTAINMENT PVT LTD S 70000 13.45
2/2/2010 502587 Rama Pulp ARUN DALMIANRE B 45000 34.39
2/2/2010 502587 Rama Pulp DEVENDRA KUMAR RAI B 75000 33.45
2/2/2010 502587 Rama Pulp JITENDRA KUMAR JAIN B 50000 33.78
2/2/2010 502587 Rama Pulp DEVENDRA SINGHVI B 70000 33.76
2/2/2010 502587 Rama Pulp OMPARKASH GUPTA B 58400 33.58
2/2/2010 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA B 255572 34.07
2/2/2010 502587 Rama Pulp DINESH JAIN B 85000 34.25
2/2/2010 502587 Rama Pulp ASHOK KUMAR CHHOGMALJI JAIN B 75000 33.47
2/2/2010 502587 Rama Pulp RASHMI RAMESHCHANDRA GANDHI B 75000 33.51
2/2/2010 502587 Rama Pulp ASHOK KUMAR CHHOGMALJI JAIN S 75000 33.45
2/2/2010 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA S 331215 33.72
2/2/2010 502587 Rama Pulp OMPARKASH GUPTA S 52032 34.03
2/2/2010 502587 Rama Pulp RASHMI RAMESHCHANDRA GANDHI S 75000 33.52
2/2/2010 502587 Rama Pulp PRABHA FARMS PVT LTD S 70000 34.05
2/2/2010 502587 Rama Pulp JEEVAN FARMS PVT LTD S 105000 33.09
2/2/2010 502587 Rama Pulp JITENDRA KUMAR JAIN S 50000 33.70
2/2/2010 502587 Rama Pulp DEVENDRA KUMAR RAI S 75000 33.50
2/2/2010 590077 Ranklin Sol SITHA BURUGULA S 50000 56.69
2/2/2010 533143 RMEDIA WRLD TRANSGLOBAL SECURITIES LTD. B 246181 92.34
2/2/2010 533143 RMEDIA WRLD SMART EQUITY BROKERS PRIVATE LIMITED B 298812 92.90
2/2/2010 533143 RMEDIA WRLD GENUINE STOCK BROKERS PVT. LTD. B 237040 93.83
2/2/2010 533143 RMEDIA WRLD OPG SECURITIES P LTD B 455026 92.89
2/2/2010 533143 RMEDIA WRLD OPG SECURITIES P LTD S 455026 92.95
2/2/2010 533143 RMEDIA WRLD GENUINE STOCK BROKERS PVT. LTD. S 237040 93.79
2/2/2010 533143 RMEDIA WRLD SMART EQUITY BROKERS PRIVATE LIMITED S 298812 92.92
2/2/2010 533143 RMEDIA WRLD TRANSGLOBAL SECURITIES LTD. S 243991 92.56
2/2/2010 531099 Rubra Med MORTALA KOTIREDDY B 50000 18.00
2/2/2010 531099 Rubra Med K M REDDY B 50000 18.00
2/2/2010 531099 Rubra Med NARENDER KUMAR GUPTA S 100000 18.00
2/2/2010 524336 Shree Hari KETAN J KARANI S 30150 31.05
2/2/2010 530419 Sumedha Fisc NIRMAL INVESTMENTS B 38480 20.00
2/2/2010 514138 Suryalata Spin RAVINDER REDDY NANDI B 57890 75.74
2/2/2010 533121 THINKSOFT A K G STOCK BROKERS PRIVATE LIMITED B 91106 474.91
2/2/2010 533121 THINKSOFT A K G STOCK BROKERS PRIVATE LIMITED S 91106 475.31
2/2/2010 526921 Twentyfirst Cent Mgt SIDDHARTH SUNDARIYER B 100000 27.45
2/2/2010 526921 Twentyfirst Cent Mgt ANMOL FINPRO PVT LTD S 80000 27.45
2/2/2010 531390 Upsurge Invest REETA DHANNALAL JAIN B 400000 7.87
2/2/2010 531390 Upsurge Invest NEW ERA ADVISORS PVT LTD S 400000 7.87
2/2/2010 511431 Vakrangee Soft HIGHPOINT TRADING COMPANY PRIV B 360500 67.92
2/2/2010 511431 Vakrangee Soft RAMCHANDRA SHARMA S 290000 67.77
2/2/2010 531950 Vertex Sec RANJAN VARGHESE S 49500 22.02
2/2/2010 531249 Well Pack Papers NAVNATH SAKHARAM GHONE S 22500 426.02
2/2/2010 506720 Zandu Pharma SMART EQUITY BROKERS PRIVATE LIMITED B 4514 5776.06
2/2/2010 506720 Zandu Pharma OPG SECURITIES P LTD B 11113 5738.57
2/2/2010 506720 Zandu Pharma MARWADI SHARES AND FINANCE LTD. B 5060 5758.54
2/2/2010 506720 Zandu Pharma KAMLESH M SISODIYA B 4846 5823.41
2/2/2010 506720 Zandu Pharma RKSV SECURITIES INDIA PVT LIMITED B 6158 5810.25
2/2/2010 506720 Zandu Pharma RKSV SECURITIES INDIA PVT LIMITED S 6158 5798.80
2/2/2010 506720 Zandu Pharma KAMLESH M SISODIYA S 5021 5839.97
2/2/2010 506720 Zandu Pharma OPG SECURITIES P LTD S 11113 5746.09
2/2/2010 506720 Zandu Pharma MARWADI SHARES AND FINANCE LTD. S 5060 5764.67
2/2/2010 506720 Zandu Pharma SMART EQUITY BROKERS PRIVATE LIMITED S 4514 5774.89
* B - Buy, S - Sell
NSE Bulk Deals to Watch - Feb 2 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
02-FEB-2010,ASTEC,Astec LifeSciences Ltd,BP FINTRADE PRIVATE LIMITED,BUY,114648,83.20,-
02-FEB-2010,ASTEC,Astec LifeSciences Ltd,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,BUY,99010,83.63,-
02-FEB-2010,BHARTISHIP,Bharati Shipyard Limited,MBL & COMPANY LTD.,BUY,149648,329.14,-
02-FEB-2010,BHARTISHIP,Bharati Shipyard Limited,MINT TRADING & INVESTMENT,BUY,160389,330.20,-
02-FEB-2010,CHI,CHI Investments Limited,ANGEL GLOBAL CAPITAL PRIVATE LIMITED,BUY,76742,45.01,-
02-FEB-2010,CLUTCHAUTO,Clutch Auto Limited,BP FINTRADE PRIVATE LIMITED,BUY,90621,63.97,-
02-FEB-2010,GHCL,GHCL Limited,NANDUBHAI P PATEL HUF,BUY,517075,47.10,-
02-FEB-2010,HIMACHLFUT,Himachal Fut Comm Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,2347230,16.22,-
02-FEB-2010,ITI,ITI Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,115655,57.21,-
02-FEB-2010,RMEDIA,Rel. Media World Ltd,CPR CAPITAL SERVICES LTD.,BUY,233962,92.53,-
02-FEB-2010,RMEDIA,Rel. Media World Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,277000,93.54,-
02-FEB-2010,RMEDIA,Rel. Media World Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,231431,92.43,-
02-FEB-2010,RMEDIA,Rel. Media World Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,294986,92.61,-
02-FEB-2010,SOFTPRO,Softpro Systems Limited,PILOT CONSULTANTS PRIVATE LIMITED,BUY,35000,289.47,-
02-FEB-2010,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,105927,474.90,-
02-FEB-2010,VAKRANSOFT,Vakrangee Softwares Limit,HIGHPOINT TRADING COMPANY PRIVATE LIMITED,BUY,250000,67.41,-
02-FEB-2010,ZANDUPHARM,Zandu Pharma works Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,7794,5776.84,-
02-FEB-2010,ASTEC,Astec LifeSciences Ltd,BP FINTRADE PRIVATE LIMITED,SELL,96140,82.77,-
02-FEB-2010,ASTEC,Astec LifeSciences Ltd,LOTUS GLOBAL INVESTMENT LIMITED,SELL,150000,82.50,-
02-FEB-2010,ASTEC,Astec LifeSciences Ltd,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,SELL,99020,82.91,-
02-FEB-2010,ATLASCYCLE,Atlas Cycles (Haryana) Lt,INDIAN OVERSEAS BANK,SELL,19264,213.17,-
02-FEB-2010,AUSTRAL,Austral Coke & Projects L,SICOM LTD,SELL,2652830,7.90,-
02-FEB-2010,BHARTISHIP,Bharati Shipyard Limited,MBL & COMPANY LTD.,SELL,149648,329.22,-
02-FEB-2010,BHARTISHIP,Bharati Shipyard Limited,MINT TRADING & INVESTMENT,SELL,160389,330.76,-
02-FEB-2010,BIL,Bhartiya Intl Limited,SAL REAL ESTATES (P) LTD,SELL,40000,75.53,-
02-FEB-2010,CHI,CHI Investments Limited,ANGEL GLOBAL CAPITAL PRIVATE LIMITED,SELL,10100,44.50,-
02-FEB-2010,CLUTCHAUTO,Clutch Auto Limited,BP FINTRADE PRIVATE LIMITED,SELL,91851,64.21,-
02-FEB-2010,GHCL,GHCL Limited,Bharat Patel,SELL,1017075,47.12,-
02-FEB-2010,GOLDTECH,Goldstone Tech Ltd.,RELIGARE FINVEST LTD,SELL,109315,35.75,-
02-FEB-2010,HIMACHLFUT,Himachal Fut Comm Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,2347230,16.24,-
02-FEB-2010,INFOMEDIA,Infomedia 18 Limited,REKHA JHUNJHUNWALA,SELL,293356,36.35,-
02-FEB-2010,ITI,ITI Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,115655,57.23,-
02-FEB-2010,RMEDIA,Rel. Media World Ltd,CPR CAPITAL SERVICES LTD.,SELL,233962,92.60,-
02-FEB-2010,RMEDIA,Rel. Media World Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,277000,93.70,-
02-FEB-2010,RMEDIA,Rel. Media World Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,231251,92.47,-
02-FEB-2010,RMEDIA,Rel. Media World Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,296334,92.55,-
02-FEB-2010,SOFTPRO,Softpro Systems Limited,ADVENT ADVISORY SERVICES PVT LTD,SELL,35000,284.56,-
02-FEB-2010,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,105927,475.01,-
02-FEB-2010,VAKRANSOFT,Vakrangee Softwares Limit,RAMCHANDRA SHARMA,SELL,194175,67.17,-
02-FEB-2010,ZANDUPHARM,Zandu Pharma works Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,7794,5783.63,-
Sensex sheds its morning gains
Today's major news
NTPC fixes FPO price at Rs201, the stock slides 2.46%
Bajaj Auto’s January sales doubles, the stock closed 1.93% lower
Zylog Systems acquires Canadian firm for Rs150 crore, the stock rises 1.46%
Chromatic India’s board approves bonus shares; the stock jumps 4.99%
Siemens receives Rs100 crore order; the stock ends the day lower by 1.40%
Click here for more stories
Post-market summary
Global signals
On Tuesday, the European indices that had opened weak on the back of disappointing results of BP erased their losses. At the time of writing this report the FTSE 100 was up by 0.26%.
Among the major Asian indices, all the indices closed lower except Nikkei and Hang Seng that closed with gains. The SGX Nifty fell by 83 points.
US stock futures opened marginal lower, as investors awaited data on pending home sales and results of Pepsi.
Indian indices
Taking lead from the buoyant global markets, the domestic markets opened higher with the Sensex opening 12 points higher and extending its gains to touch the day’s high of 16526. However, in the afternoon session the market was caught in volatility and tumbled by almost 400 points from its high to touch the day’s low of 16129 after the Asian indices closed off the day’s high and the European stock markets opened weak. The selling pressure in heavyweights like Reliance Industries and ICICI Bank also added to the weakness. At the finishing line, the Sensex closed at 16163, 192 points lower. The Nifty closed 69 points lower at 4830.
Sensex sentiment
The declining stocks outnumbered the advancing stocks: Of the 2,963 stocks traded on the BSE, 1,788 stocks declined whereas 1,105 stocks advanced. Seventy stocks closed unchanged.
Sectoral and stock screening
Bears trampled all the sectors with the BSE Realty Index getting hit the most, by 2.45%. The BSE Bankex was hit by 1.99% and the BSE PSU Index lost 1.71%. The BSE Metal Index and the BSE Oil & Gas Index were down by 1.57% each. The remaining sectoral indices slipped by around 0.46% to 1.46% each.
The star of the day was Spice Communications, which was up by 16.59%, followed by Jain Irrigation, which surged by 4.05%, and Dr Reddy’s, which rose by 3.37%. Among the laggards Tulip Telecom slid the most (by 6.40%), followed by PTC India, which fell by 4.57%, and Jet Airways that shed 4.37%.
Viewing volumes
Industrial finance company IFCI saw the highest trading volumes with over 1.23 crore shares changing hands on the BSE. It was followed by realty major Unitech (1.15 crore shares), wind turbine major Suzlon Energy (1.00 crore shares), Rashtriya Chemicals and Fertilisers (0.95 crore shares) and Ispat Industries (0.47 crore shares).
Asian markets took turnaround on Tuesday
Nikkei, Hang Seng edge higher while Shanghai, Sensex finish lower
Stock markets in Asian region rebounded on Tuesday 2 February 2010, led by resources stocks, after strong US manufacturing data raised hopes the global economic recovery was on a firmer footing as governments move to withdraw stimulus spending.
On Wall Street, the Dow closed with a triple-digit rally, as January manufacturing activity far exceeded expectations and better-than-expected earnings from Exxon Mobil helped the market look past weak construction spending data. The Dow Jones Industrial Average gained 118 points, or 1.2%, to 10,186. The S&P 500 picked up by 15 points, or 1.4%, at 1089 and the Nasdaq improved by 24 points, or 1.1%, at 2171.
On the economic front, the Institute for Supply Management said its manufacturing index rose to 58.4 in January. The measure was a significant improvement from December's downwardly revised level of 54.9. Meanwhile, construction spending slumped 1.2% in December. The Census Bureau also revised down November's reported dip of 0.6%, to a bearish 1.2% slump.
In other macroeconomic news, the Commerce Department said personal spending rose 0.2% in December, which was slightly below the 0.3% increase that economists had been expecting and well below November's 0.7% rise. For 2009, personal spending declined 0.4%. Personal income slightly exceeded expectations, rising 0.4% in December.
On the political front, President Obama kicked off the month with the introduction of a proposed $3.8 trillion budget that would push the federal deficit to $1.6 trillion with additional stimulus spending aimed at job growth. The budget, however, aims at lowering the deficit in the longer term with a three-year spending freeze.
In the commodity market, crude oil rose for a second day in New York after manufacturing in the U.S. increased at the fastest pace since August 2004, adding to signs that fuel use in the world's biggest energy-consuming country may gain.
Crude oil for March delivery climbed as much as $1.01, or 1.4%, to $75.44 a barrel in electronic trading on the New York Mercantile Exchange. It was at $75.02 at 9:25 a.m. London time. Yesterday, the contract rose 2.1% to settle at $74.43, the biggest one-day increase since 4 January 2010.
Brent crude oil for March settlement rose as much as $1.41, or 1.9%, to $74.52 a barrel on the London-based ICE Futures Europe exchange. It was at $73.70 at 9:26 a.m. London time. Yesterday, the contract climbed 2.3%, the most since 4 January 2010, to settle at $73.11.
Gold weakened as some investors opted to sell the metal after the biggest advance in three months and the dollar resumed its rise against major currencies. Gold for immediate delivery fell 0.2% to $1,103.35 an ounce at 2:39 p.m. Singapore time, paring yesterday's 2.3% gain, the biggest advance since 3 November 2009.
In the currency market, Australia dollar drops sharply after RBA unexpectedly left rates unchanged at 3.75% while markets were generally expecting another 25bps hike. The US dollar remains in range as risk aversion receded overnight on rebound in US stocks and rebound in Asian equity markets.
The Japanese yen bounced from early weakness against major counterparts on Tuesday as the Reserve Bank of Australia's surprise decision to hold its key interest rate at 3.75% prompted traders to buy safe-haven currencies like the dollar and the yen. Japan's currency yen was quoted at 90.49 against the greenback.
The Hong Kong dollar was trading at HK$ 7.7673 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 fell across the board after the Reserve Bank stunned markets by leaving rates unchanged at 3.75%. The dollar, which was among the best performing currencies in the world last year, fell as low as $US0.8784, shedding more than a cent following the central bank decision. At the local close it had recovered a little and was trading at $US0.8803.
In Wellington trades, the Reserve Bank of Australia's unexpected decision to keep its official cash rate at the same level saw the New Zealand dollar also dragged against the US greenback this afternoon. After recording a level of US 70.02 cents at 5pm yesterday, the NZD reached a high of US 70.96 cents during the afternoon before being dragged down to US 70.58 cents at 5pm following news of RBA.
The South Korean won closed at 1,159.90 won against the U.S. dollar, up 9.60 won from Monday's close on reports that the country's foreign exchange reserves reached a fresh record high of US$273.69 billion in January.
The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.060, 0.0410 up from Monday's close of NT$32.1010.
In equities, Asian stock markets finished mostly higher as gains in Wall Street buoyed sentiment, with automakers in Japan rising after Toyota Motor took steps to fix recalled vehicles and as the region's resources plays rebounded.
In Japan, the share market spurted on the back of triple digit gains in Wall Street overnight, softer yen, and stronger commodity prices. The rally also supported by broad based bargain hunting after the latest data showed a jump in manufacturing activity across Asia, the euro zone and the US. At the closing bell, the Nikkei 225 Stock Average index was at 10,371.09 i.e. 166.07 points or 1.66% higher, while the broader Topix of all First Section issues on the Tokyo Stock Exchange gained 14.21 points, or 1.58%, to 912.82.
On the economic front, average monthly wages at Japanese companies with at least five employees fell 3.9% in 2009 from the previous year to 315,164 yen, the Health, Labor and Welfare Ministry said Tuesday.
Japan's monetary base rose 4.9% in January from a year earlier for the 17th straight month of increase, the Bank of Japan said Tuesday, standing at 98.067 trillion yen after the 5.2% annual increase in December.
In Mainland China, the stocks reversing morning gains to fell fresh four month closing low, as concern grew countries worldwide may step up plans to withdraw stimulus measures and China will curb lending overshadowed gains by materials and energy. Market participants' indulged to quick cash out gains in last half hour on mounting concerns over more tightening from the government to prevent the economy from overheating.
At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, fell 6.65 points, or 0.23%, to 2,934.71, while the Shenzhen Component Index on the smaller Shenzhen Stock Exchange erased 76.18 points, or 0.64%, to 11,912.93. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, slid 0.2%, to 3,146.50.
On the economic front, sales of new homes, excluding those designated for relocated residents under urban redevelopment plans, plunged 51% to 700,000 square meters last month, Shanghai Uwin Real Estate Information Services Co said yesterday. The decline was due to sluggish buying momentum, which was affected by a series of government cooling measures that aim to curb property speculation.
In Hong Kong, the key share ended edge higher, helped by gains among materials and resources shares that had been heavily sold in recent days. However, the key index erased almost all intraday gains of 1.4% as lingering worries of China further tightening step, weaker European market, and as US index futures indicates weaker opening bell.
At the closing bell, the Hang Seng Index was up 28.43 points, or 0.14%, to 20,272.18, while the Hang Seng China Enterprise, which tracks the overall performance of 43 Mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, decreased 51.29 points, or 0.44%, to 11,570.35.
In Australia, the share market spurted on tracking firm cues from offshore market and stronger commodities prices. A surprise decision by the RBA to leave the official cash rate on hold at 3.75% did little to sway investor optimism, with the market closing at levels seen in early trade before the decision. At the closing bell, the benchmark S&P/ASX200 index soared 81.20 points, or 1.79%, to 4,605.20, meanwhile the broader All Ordinaries has gained 84 points, or 1.85%, to 4,628.80.
On the economic front, according to the NAB's monthly business survey, business confidence dropped from 19 points in November to 8 points in December. The decline has been largely attributed to recent interest rate hikes.
In New Zealand, stock market ended in the red region despite a fairly strong start to the day. New Zealand shares inched up early today in line with most of the Asian markets trailing a sturdy start on the Wall Street overnight after United States stocks jumped as manufacturing sector data came in better than expected. At the closing today, the NZX 50 lost 0.11% or 3.6 points to 3147.37. Meanwhile, the NZX 15 declined by 0.11% or 6.25 points to close at 5672.29.
On the economic front, the Reserve Bank has released a consultation paper on possible changes to liquidity requirements for savings institutions and finance companies, in a bid to stop such institutions from failing. The non-bank deposit takers consultation document on liquidity policy is the result of a law that came into force last year, which required all non-bank deposit takers to comply with a risk management plan, which includes procedures for managing liquidity risk.
In South Korea, stocks closed lower as a surprise rate freeze by the Australian central bank renewed concerns about the strength of a global economic recovery. Reversing earlier gains, the benchmark Korea Composite Stock Price Index (KOSPI) lost 10.63 points to end at 1,595.81.
In Singapore, the share market closed below the water after a surge in the morning session as player's quick cash out gains on any strength on concerns of more downside in near term as investors continued to be wary of possible tightening measures from Beijing. There were market concerns on the tightening policy, and the Singapore stocks were unable to rebound strongly in the afternoon. At the closing bell, the blue chip Straits Times Index was at 2,720.87, fell 15.30 points or 0.56%.
In Taiwan, stock markets tanked to three months closing low as investors worried that Taiwan-China trade pacts would be affected after the United States arms sale to Taiwan. The benchmark Taiex share index extended the losses for the third session by finishing the day lower by 95.06 points or 1.26% at 7429.61 � the lowest closing since 5 November 2009 when market finished the day at 7417.46.
On the economic front, Taiwan's economic monitoring indicator flashed the second consecutive yellow-red in December 2009, with the composite index remaining 37. According to the Cabinet-level Council for Economic Planning and Development (CEPD), in December of 2009, Taiwan's export orders reached US$31.7 billion, back to the level before the global financial tsunami erupting in the second half of 2008. In the same month the leading economic indicator edged up by 0.8% from a month earlier to 104.6; while the annualized 6-month rate of change fell by 1.1% to 19.9%.
In other economic news, the Taiwan Institute of Economic Research (TIER), a major economic think tank in Taiwan, adjusted upward its forecast for Taiwan's economic growth by 0.6%to 4.81% for 2010, thanks to the obvious economic recovery.
Chen Miao, director at Economic Forecasting Center of TIER, indicated that the economy has recently recovered remarkably and domestic manufacturers have largely increased capital spending to expand operations, and therefore TIER predicted that the private investments this year might chalk up by 7.19%.
In Philippines, the stock market continued to hover around the three months low level, as investors continued to sell the key heavy weight stocks. However, after falling to a three-month low yesterday, share prices recovered in early trade tracking the gains in Wall Street overnight. Nevertheless, inflation concerns weighed investor's sentiment lower. The central bank expects the rise in consumer prices to range between 4.5% and 5.4%, within its 3.5-5.5% target for this year. At the final bell, the benchmark index PSEi lost 0.66% or 19.03 points to 2,864.18, while the All Shares index tumbled 0.96% or 17.84 points to 1,830.55.
In India, key benchmark indices extended losses to fresh intraday low in late trade as investors turned cautious ahead of the opening of the large follow-on public offer (FPO) of state-run power generation firm NTPC on Wednesday, 3 February 2010. The BSE 30-share Sensex was down 192.59 points or 1.18% to 16,163.44. The S&P CNX Nifty was down 69.60 points or 1.42% to 4830.10.
Elsewhere, Malaysia's Kula Lumpur Composite index finished slightly higher at 1263.76 while stock markets in Indonesia's Jakarta Composite index fell by 7.30 points ending the day lower at 2580.25.
In other regional equities, European shares moved off early lows on Tuesday, as gains for miners offset losses for oil and gas companies. On the regional front, the FTSE 100 index was trading higher by 0.24% or 12.31 points at 5,260, while the French CAC-40 index rose 0.6% or 24.26 points to 3,786 and the German DAX index also rose 0.6% or 33.46 points to 5,688.
Small-cap, mid-cap indices reverse initial gains
Key benchmark indices declined reversing early gains as investors turned cautious ahead of the opening of the large follow-on public offer (FPO) of state-run power generation firm NTPC on Wednesday, 3 February 2010. The BSE 30-share Sensex fell 192.59 points or 1.87%, up close to 35 points from the day's low and off close to 360 points from the day's high. Power, realty, metal, auto, capital goods and banking stocks fell. Index heavyweight Reliance Industries (RIL) declined. The market breadth turned weak in contrast to a strong breadth earlier in the day. European markets rose and the US index futures reversed early losses.
NTPC kickstarts what is expected to be a large fund raising exercise by Indian firms in calendar 2010 from share sales. A section of the market is concerned that a glut in share sales will soak liquidity from the secondary market. As per reports, Indian firms may raise $30 billion from share sale in 2010, led by government stake sales and initial public offers from power and property firms. Indian companies raised about $20 billion from share sales in calendar 2009.
India VIX, a volatility index based on the S&P CNX Nifty index option prices, jumped 4.22% to 26.69. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days
The market jumped in early trade tracking firm Asian stocks which surged after the latest data showed a jump in manufacturing activity across Asia, the euro zone and the US. The market pared gains in morning trade as some Asian stocks reversed gains and US index futures fell. It recovered after turning negative for a brief period in mid-morning trade. It once again slipped into the red, hitting fresh day's low in early afternoon trade. The market cut losses later. The market slumped to hit fresh day's low in mid-afternoon trade as European stocks fell in early trade and US index futures dropped. A bout of volatility was witnessed at the fag end of the trading session
White House adviser Paul Volcker will urge the US Congress to curb the risks taken by large banks to help prevent them from being treated as "too big to fail", a media report said on Tuesday. Volcker will appear before the Senate Banking Committee on Tuesday, 2 February 2010, to defend the US administration's latest proposal to rein in the banks.
Detailing a recent proposal known as "the Volcker rule," the former Federal Reserve Chairman will tell lawmakers that commercial banks' proprietary and speculative activities should not be protected by the government, a news agency report suggested. Volcker will also urge international consensus on "appropriate" actions to restrict commercial banks' activities. In January 2010, US President Barack Obama proposed limiting commercial banks' ability to engage in proprietary trading, to end their ties to hedge funds and private equity funds and to restrict the future growth of large banks beyond a new market share cap.
Closer home, domestic institutional investors (DIIs) are on a buying spree on the bourses even as foreign funds have pressed heavy sales over the past few days. As per data from the stock exchanges, domestic institutions have bought shares worth Rs 12421.88 crore since the beginning of calendar 2010 even as foreign funds dumped stocks worth a net Rs 7711.32 crore since the beginning of in the New Year.
On the macro front, manufacturing activity in January 2010 grew at its fastest pace in almost 1-1/2 years, driven by a sharp rise in new export orders that are supporting a recovery in the industrial sector, a survey showed on Monday. The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 Indian companies, rose to 57.7 in January, its strongest reading since August 2008 and up from 55.6 in December.
Exports continued to rebound, rising an annual 9.3% in December to $14.6 billion, their second consecutive monthly rise, although the pace of annual growth was slower than the 18.2% registered in November. Imports increased by 27.2% in December from a year earlier to $24.75 billion while the trade deficit shrunk by a little over 28 percent to $76.24 billion for the April- December 2009 period.
The HSBC Purchasing Managers' Index mirrored the positive export performance, with a more-than 5 point jump in the new export orders component, a sign that growth in manufacturing sector is increasingly fuelled by exports.
Rising prosperity will increasingly put pressure on food supply in India and the country urgently needs to boost farm productivity, Prime Minister Manmohan Singh said on Monday. After last year's failed monsoon rains, food prices have jumped in India, one of the world's top consumers of sugar, wheat, edible oils, rice and lentils, triggering protests in poorer regions and putting pressure on authorities to tighten monetary supply. He urged state governments to take steps to boost food output and tackle shortages of essential commodities.
On Friday 29 January 2010, the Reserve Bank of India raised the cash reserve ratio for banks by a higher-than-expected 75 basis points in an effort to soak up excess liquidity, and ramped up its forecast for GDP growth in the current fiscal year through March to 7.5% from its earlier forecast of 6%. It lifted its wholesale price index inflation forecast for the end of the fiscal year in March to 8.5% from 6.5%.
Meanwhile, the Reserve Bank of India (RBI) governor Duvvuri Subbarao has for the first time, said the nation may have to take some measures towards capital control in the short term to avoid stark economic imbalances after acknowledging in the past the role played by fund flows in worsening inflation, boosting asset prices and destroying industry competitiveness.
The RBI will target inflation in the coming months, Subbarao said on Monday. Subbarao also said it is important for the government to withdraw the stimulus and that the government and central bank would have to coordinate in withdrawing stimulus. He reiterated that the economy is back to growth and added that the challenge is to accelerate momentum.
The Reserve Bank of India (RBI) will adjust monetary policy outside of its quarterly review cycle only under extraordinary circumstances, a deputy governor Subir Gokarn said on Monday.
European shares moved off early lows on Tuesday, as gains for miners offset weakness for oil and gas producers after BP's fourth-quarter results. The key benchmark indices in France, Germany and UK rose by between 0.22% to 0.85%.
Asian markets reversed early gains on Tuesday. The key benchmark indices in South Korea, Indonesia, Singapore, Taiwan and China fell by between 0.23% to 1.26%. The key benchmark indices in Hong Kong and Japan rose by between 0.14% to 1.63%.
US index futures reversed early losses. Trading in US index futures indicated that the Dow could gain 31 points at the opening bell on Tuesday, 2 February 2010.
In US markets action on Monday, the Dow kicked off February with a triple digit gain after some strong earnings report and a positive manufacturing report. The Dow added 118.20 points, or 1.2%, to 10,185.53. The broader Standard & Poor's 500 Index gained 15.32 points, or 1.4%, to 1,089.19. The Nasdaq Composite Index advanced 23.85 points, or 1.1%, to 2,171.20.
In encouraging economic data, the ISM manufacturing index for January hit a 5 year high of 58.4, which is stronger than expected 55.5. Personal income and spending rose, while construction spending fell 1.2% for the month of December.
Also, the White House yesterday revealed its 2010 budget, which showed the deficit is likely to soar to 1.56 trillion dollars this year, but will fall to half that by the time President Obama's term ends in 2012. President Barack Obama pledged on Monday to halve a record 2010 budget deficit by the end of his first term in office, but made tackling double-digit unemployment his immediate priority with a spending plan that risked public ire and a rough battle in Congress.
Closer home, the BSE 30-share Sensex fell 192.59 points or 1.87% to 16,163.44. The index rose 169.95 points at the day's high of 16,525.98 in early trade. The Sensex lost 226.92 points at the day's low of 16,129.11 in late trade.
The S&P CNX Nifty fell 69.60 points or 1.42% to 4830.10. Nifty February 2010 futures were at 4,818, at a discount of 12.10 points as compared to the spot closing of 4,830.10. Turnover in NSE's futures & options (F&O) segment surged to Rs 79683.06 crore from Rs 60383.27 crore on Monday, 1 February 2010.
The BSE Mid-Cap index fell 1.19% and the BSE Small-Cap index fell 0.77%. Both these indices were in green earlier in the day.
All the sectoral indices on BSE edged lower. BSE Realty index (down 2.45%), banking sector index Bankex (down 1.99%), BSE PSU index (down 1.71%), BSE Metal index (down 1.57%), BSE Oil & Gas index (down 1.57%), BSE Capital Goods index (down 1.46%), BSE Auto index (down 1.45%), and BSE Power index (down 1.44%), underperformed the Sensex. BSE FMCG index (down 0.46%), BSE Healthcare index (down 0.74%), BSE IT index (down 0.77%), and BSE Consumer Durables index (down 1.1%), outperformed the Sensex
The market breadth, indicating the overall health of the market, turned weak. The breadth was strong earlier in the day. On BSE, 1110 shares advanced as compared with 1781 that fell. A total of 71 shares remained unchanged.
Among the 30 share Sensex pack, 26 fell and rest rose.
BSE clocked a turnover of Rs 5265 crore, higher than Rs 4809.01 crore on Monday, 1 February 2010.
Index heavyweight Reliance Industries (RIL) fell 1.91%. 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.
Stocks from interest rate sensitive auto sector fell on profit taking. India's largest tractor maker by sales Mahindra and Mahindra (M&M) fell 2.61%. Mahindra & Mahindra total vehicle sales jumped 71.2% to 30,149 units in January 2010 over January 2009.
TVS Motor Company fell 2.16%. The company's vehicle sales rose 34% in January 2010 over January 2009.
India's top truck marker by sales Tata Motors fell 1.54%. Tata Motors total sales rose 77% to 65,478 units in January 2010 over January 2009. Domestic sales rose 74% to 62,202 units in the same period. Commercial vehicles sales increased 107% to 35,957 units, while passenger vehicle sales rose 43% to 28,547 units in January 2010 over January 2009.
Bajaj Auto fell 1.93%. The company's total vehicle sales soared 101% to 2.66 lakh units in January 2010 over January 2009.
India's top small car maker by sales Maruti Suzuki India fell 1.87%. The company's vehicle sales rose 33.3% to 94649 units in January 2010 over January 2009.
India's largest motorbike maker by sales Hero Honda Motors fell 0.73%. Hero Honda Motor's total sales rose 23.6% to 389,802 units in January 2010 over January 2009. After market hours on 25 January 2010, the company reported a 78.34% rise in net profit to Rs 535.77 crore on a 32.72% rise in sales to Rs 3814.42 crore in Q3 December 2009 over Q3 December 2008.
Rate sensitive realty shares also fell on profit taking. Akruti City, Indiabulls Real Estate, Housing Development & Infrastructure, Omaxe fell by between 0.31% to 1.96%.
India's largest realty player by sales DLF fell 2.03%. The company's net profit rose 26.04% to Rs 224.43 crore on 109.03% rise in sales to Rs 887.16 crore in Q3 December 2009 over Q3 December 2008. The company announced the Q3 result last week.
Unitech fell 4.34%. The company's net profit rose 576.6% to Rs 131.94 crore on 216.7% rise in sales to Rs 642.88 crore in Q3 December 2009 over Q3 December 2008.
India's largest power equipment maker by sales Bharat Heavy Electricals lost 1.04%, extending Monday's losses. Bharat Heavy Electricals said last week it would sign an agreement with the Madhya Pradesh state utility to jointly set up a 1,600 megawatts thermal power plant in the central Indian state.
India's largest engineering and construction firm by sales Larsen & Toubro fell 1.43%. The company announced on Monday said that it won orders worth Rs 2155 crore.
Among other capital goods stocks, Siemens, ABB, Thermax, BEML and Praj Industries fell by between 0.74% to 3.14%.
Metal stocks fell on profit taking. India's largest private sector steel maker by sales Tata Steel fell 0.98%. The company's net profit surged 155.6% to Rs 1191.75 crore in Q3 December 2009 over Q3 December 2008. The company announced the result during market hours on Thursday 28 January 2010.
Tata Steel will report consolidated third-quarter results, to include the Corus numbers this month. The Indian operations account for a quarter of the group's annual global capacity of about 30 million tonnes.
National Aluminium Company lost 2.25%. The company's net profit declined 29.3% to Rs 155.18 crore in Q3 December 2009 over Q3 December 2008.
India's largest non-ferrous metal firm by capacity Sterlite Industries India fell 2.2%. The company's net profit slumped 77.16% to Rs 46.59 crore on a 39.83% increase in sales to Rs 3611.99 crore in Q3 December 2009 over Q3 December 2008.
Steel Authority of India (Sail) fell 2.06%. Sail reported a 99% jump in its net profit at Rs 1,675.55 crore in Q3 December 2009 over Q3 December 2008.
But, India's largest private sector aluminum maker by sales Hindalco Industries rose 1.31%. The company's net profit fell 21.60% to Rs 427.10 crore on a 29.56% increase in sales to Rs 5286.10 crore in Q3 December 2009 over Q3 December 2008.
Rate sensitive banking shares fell as bank lending growth remains sluggish. India's second largest private sector bank by net profit HDFC Bank fell 1.26% extending Monday's 1.57% decline. Its ADR rose 1.14% on Monday. India's largest private sector bank by net profit ICICI Bank fell 1.85%. Its ADR rose 1.9% on Monday.
India's largest bank by net profit and branch network State Bank of India fell 2.14%. SBI chairman O P Bhatt recently said deposit rates may not go up immediately but there is no room for deposit rates to come down.
Bank stocks had risen on Friday 29 January 2010 after Reserve Bank kept interest rates unchanged in its quarterly monetary policy review announced on Friday. Commercial banks do not see any upward pressure on lending rates in the next six months, after the Reserve Bank raised banks' reserve requirements on Friday, 29 January 2010 top bankers said. The head of Indian Banks' Association (IBA), the apex industry body, said lending rates were expected to be stable till the first quarter of fiscal year starting 1 April 2010.
Banks' outstanding loans fell by Rs 11,900 crore in the two weeks to 15 January 2010 because companies repaid some loans as is typical at the beginning of a quarter, the central bank's data showed last week. The Reserve Bank of India data showed loans fell to Rs 30,08,000 crore in the two weeks to 15 January 2010 and deposits fell by around Rs 22,000 crore to Rs 42,43,000 crore. In the two weeks to 1 January 2010, outstanding loans rose by a massive Rs 78,192 crore and deposits also went up by Rs 82,769 crore.
Bank of Baroda fell 1.53% on profit booking after the stock advanced 13% in the preceding three sessions.
India's largest power utility firm by sales NTPC fell 2.46%, to Rs 206.05 extending Monday's 1.4% fall after the government fixed the benchmark price for the proposed divestment of government stake at Rs 201 per share, at a discount of almost 5% over Monday's closing price of Rs 211.25 on BSE. NTPC's follow-on public offer (FPO) opens for bidding on 3 February 2010 and closes on 5 February 2010.
Among other power firms, CESC, Torrent Power, Tata Power Company, Reliance Power fell by between 1.15% to 1.8%.
Cement shares gained after most firm posted encouraging cement sales last month. UltraTech Cement rose 3.03% after Aditya Birla Group's cement shipments rose 14% to 34.3 lakh tonnes in January 2010 over January 2009.
Ambuja Cements rose 0.94%. Ambuja Cements' January shipments rose to 17.5 lakh tonnes, up 7.5% from a year earlier. The company said production rose to 17.4 lakh tonnes from 16.1 lakh tonnes.
Shree Cement rose 0.17%. Shree Cement's January shipments rose 18% to 8.82 lakh tonnes, up from 7.49 lakh tonnes a year earlier. Total shipments during April-January period rose 24% to 76.5 lakh tonnes, up from 61.8 lakh tonnes a year ago.
But, ACC fell 0.25%. ACC's shipments in January rose 1.1% to 19.1 lakh tonnes from 18.9 lakh tonnes a year earlier. The company said production rose to 18.9 lakh tonnes from 18.7 lakh tonnes.
FMCG and healthcare stocks also fell on profit taking. Among FMCG stocks, Hindustan Unilever, Dabur India, Tata Tea, ITC, fell by between 0.32% to 0.93%.
Among healthcare stocks, Lupin, Biocon, Sun Pharmaceuticals Industries, Ranbaxy Laboratories, Cipla, Aurobindo Pharma fell by between 1.1% to 3.55%.
Hindustan Fertilisers and Chemicals clocked the highest volume of 2.44 crore shares on BSE. Cals Refineries (1.5 crore shares), IFCI (1.23 crore shares), Adani Power (1.18 crore shares) and Unitech (1.15 crore shares) were the other volume toppers in that order.
State Bank of India clocked the highest turnover of Rs 149.26 crore on BSE. Tata Steel (Rs 123.71 crore), Adani Power (Rs 120.34 crore), National Fertiliser (Rs 105.88 crore) and Rashtriya Chemicals & Fertilisers (Rs 99.28 crore) were the other turnover toppers in that order
Grey Market Premium - Infinite Computer Solutions, Aqua Logistics, Jubilant Foodworks
| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) |
| Jubilant Food Works | 135 to 145 | 18 to 19 | -- |
| Infinite Computer | 165 | 30 to 32 | -- |
| Aqua Logistics | 200 to 225 | 7 to 7.50 | 2000 to 2100 |
| Syncom Healthcare | 65 to 75 | 9 to 10 | -- |
| Thangamayil Jewellery | 70 to 75 | 3 to 3.50 | -- |
| Vascon Engg. | 165 | 8 to 9 | -- |
| D. B. Realty | 468 to 486 | 10 to 11 | 2200 to 2400 |
| Emmbi Polyarns | 40 to 45 | 4.5 to 5 | 1900 to 2000 |
| NTPC (FPO) | 201 | 10 to 12 | 2600 to 2700 |
| ARSS Infrastructure Projects | 410 to 450 | -- | -- |
| Hathway Cable & Data Comm. | -- | -- | -- |
| REC (FPO) | -- | -- | -- |
Market may nudge higher on firm Asian stocks
The market may edge higher tracking gains in Asian stocks which surged after the latest data showed a jump in manufacturing activity across Asia, euro zone and in US. US markets rose on Monday after a positive manufacturing report. Closer home, strong auto sales in January 2010 and the nation's exports showing positive growth for the second month in a row in December 2009, may also boost investor sentiment.
The manufacturing in January 2010 grew at its fastest pace in almost 1-1/2 years, driven by a sharp rise in new export orders that are supporting a recovery in the industrial sector, a survey showed on Monday. The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 Indian companies, rose to 57.7 in January, its strongest reading since August 2008 and up from 55.6 in December.
Exports continued to rebound, rising an annual 9.3% in December to $14.6 billion, their second consecutive monthly rise, although the pace of annual growth was slower than the 18.2% registered in November. Imports increased by 27.2% in December from a year earlier to $24.75 billion while the trade deficit shrunk by a little over 28 percent to $76.24 billion for the April- December 2009 period.
The HSBC Purchasing Managers' Index mirrored the positive export performance, with a more-than 5 point jump in the new export orders component, a sign that growth in manufacturing sector is increasingly fuelled by exports.
Rising prosperity will increasingly put pressure on food supply in India and the country urgently needs to boost farm productivity, Prime Minister Manmohan Singh said on Monday. After last year's failed monsoon rains, food prices have jumped in India, one of the world's top consumers of sugar, wheat, edible oils, rice and lentils, triggering protests in poorer regions and putting pressure on authorities to tighten monetary supply. He urged state governments to take steps to boost food output and tackle shortages of essential commodities.
On Friday 29 January 2010, the Reserve Bank of India raised the cash reserve ratio for banks by a higher-than-expected 75 basis points in an effort to soak up excess liquidity, and ramped up its forecast for GDP growth in the current fiscal year through March to 7.5% from its earlier forecast of 6%. It lifted its wholesale price index inflation forecast for the end of the fiscal year in March to 8.5% from 6.5%
Meanwhile, the Reserve Bank of India (RBI) governor Duvvuri Subbarao has for the first time, said the nation may have to take some measures towards capital control in the short term to avoid stark economic imbalances after acknowledging in the past the role played by fund flows in worsening inflation, boosting asset prices and destroying industry competitiveness.
The RBI will target inflation in the coming months, Subbarao said on Monday. Subbarao also said it is important for the government to withdraw the stimulus and that the government and central bank would have to coordinate in withdrawing stimulus. He reiterated that the economy is back to growth and added that the challenge is to accelerate momentum.
The Reserve Bank of India (RBI) will adjust monetary policy outside of its quarterly review cycle only under extraordinary circumstances, a deputy governor Subir Gokarn said on Monday.
Asian markets rose on Tuesday after a positive manufacturing report in US. The key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea, Singapore and Taiwan rose by between 0.54% to 1.88%.
In US markets, the Dow kicked off February with a triple digit gain after some strong earnings report and a positive manufacturing report. The Dow added 118.20 points, or 1.2%, to 10,185.53. The broader Standard & Poor's 500 Index gained 15.32 points, or 1.4%, to 1,089.19. The Nasdaq Composite Index advanced 23.85 points, or 1.1%, to 2,171.20.
In encouraging economic data, the ISM manufacturing index for January hit a 5 year high of 58.4, which is stronger than expected 55.5. Personal income and spending rose, while construction spending fell 1.2% for the month of December.
Also, the White House yesterday revealed its 2010 budget, which showed the deficit is likely to soar to 1.56 trillion dollars this year, but will fall to half that by the time President Obama's term ends in 2012. President Barack Obama pledged on Monday to halve a record 2010 budget deficit by the end of his first term in office, but made tackling double-digit unemployment his immediate priority with a spending plan that risked public ire and a rough battle in Congress.
Closer home, the key benchmark indices witnessed a divergent trend on Monday, 1 February 2010 with BSE Sensex closing flat and S&P CNX Nifty eking out small gains after a strong intraday rebound triggered by upbeat economic data and higher monthly sales figures from two auto majors Maruti Suzuki and Mahindra & Mahindra. The BSE 30-share Sensex was down 1.93 points or 0.01% to 16,356.03 on that day.
As per provisional figures on NSE, foreign funds sold shares worth Rs 494.66 crore and domestic funds bought shares worth Rs 199.83 crore on Monday.
Sensex to open gap-up
Headlines for the day
Indian Oil to expand in North - Business Standard
Indian Hotels to run 3 hotels in Egypt - Business Standard
JSW Energy to invest Rs57,000 crore - Business Standard
Hindalco to make beverage cans in India - Business Standard
ONGC plans Rs26,000 crore investment in 2011 - Business Line
Events for the day
Major corporate action:
DB Realty IPO closes today.
Ex-date for interim dividend of Coromandel International, HCL Infosystems, HOV Service and Rane Holdings Ltd
Pre-market report
Global signals
On Monday, the European shares closed higher boosted by banking stock. FTSE 100 closed 1.98% higher at 5247.
US markets closed higher on Monday on the back of better-than-expected data on the manufacturing sector and earnings from Exxon Mobil. Nasdaq closed 24 points higher at 2171.
In today's trade, All the Asian indices trading higher. At the time of writing this report SGX Nifty trading higher by 44 points.
Indian markets
On the day when global indices turned positive, Indian market seen higher opening in Dalal Street and may remain positive.
Among the local indices, the Nifty could test the 4950-5000 range on the up side, while on the down side it could find support at 4850 and 4800. While the Sensex is likely to get support at 16200 and may face resistance at 16600.
Indian ADR's
Among the Indian ADRs trading on the US bourses, all the ADRs closed higher. Tata Motors surged the most with gain of 6.97% followed by Wipro that advanced 6.60%.
Commodity cues
In the commodity space, wherein the Crude oil prices recorded marginal fain, with the Nymex light crude oil for March series rose by $0.55 to settle at $74.98 a barrel.
In the metals space, Comex Gold for March series rise by $21.50 to settle at $1105.30 to a troy ounce.
In the metals space, Comex Silver for March series rise by $0.46 to settle at $16.65 to a troy ounce.
Daily trend of FII/MF investment in equities
On February 01, 2010, FIIs were the net buyers of the Indian Stocks in the tune of Rs197.50 crore (with the gross purchase of Rs3940.00 crore and gross sales of Rs3742.60 crore).
While the Domestic mutual funds, on January 29, 2010, were the net buyers of the stocks in the tune of Rs636.20 crore (with gross purchase of Rs1329.60 crore and gross sales of Rs693.40 crore).
Copper ends on a mixed mode
Prices drop at LME but rise at Comex
Base metal prices ended lower for the fifth consecutive day at LME on Monday, 01 February 2010. Rising LME inventories and tightening monetary policies in China offset a stronger than expected batch of economic reports. But prices rose at Comex due to the weak dollar.
At USA, copper futures for March delivery ended higher by 2.75 cents (0.9%) to $3.08 a pound. This year, till date, copper is lower by 8%. Copper ended FY 2009 higher by 140%.
At LME, copper for delivery in three months ended lower by $150 (2.2%) at $6,600. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
Copper ended substantially higher last year on expectations of revived global economic growth along with a decline in the dollar. The dollar index had dropped almost 4.2% last year. The metal was also pushed higher by record first-half imports to China, the world's largest user.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
Among economic data expected for the day, The Institute for Supply Management in US reported on Monday, 01 February 2010, that its index rose to 58.4 in January 2010 from 54.9 in December 2009. A figure of 56 was expected by market. It is the highest reading since August 2004.
Readings over 50% in the ISM diffusion index indicate that more firms are growing than contracting. The report indicated that nation's manufacturing firms were growing at a very strong pace in January 2010.
But enthusiasm over the report was a bit tempered by a steeper-than-expected 1.2% drop in construction spending during December. Separately, personal income during December was up 0.4% in a slightly sharper increase than had been expected, but spending during December increased at a softer-than-expected pace of 0.2%. Core personal consumption expenditures increased just 0.1% month-over-month, but that was in-line with expectations.
In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.2%.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
At the MCX, copper for February delivery closed higher by Rs 4.6 (1.5%) at Rs 316.05/Kg. Prices rose to a high of Rs 317.1/Kg and fell to a low of Rs 307.8/Kg during the day's trading.
Among other metals traded in the LME on Monday, lead ended 3.2% lower at $1,960 a ton and zinc dropped 1.7% to end at $2,074 a ton. Nickel dropped 0.5% to end at $18,500. Aluminum added 0.1% to end at $2,080 a ton.
Enjoy the start!
Enjoy when you can, and endure when you must.
The health of the Indian economy seems to be getting better by the day if the latest reports on manufacturing and foreign trade are any indication. Hopefully, the wealth will also follow likewise on the bourses. Auto sales remain on the fast track, underscoring a pick-up in consumer confidence. The only drag is a sub-par credit growth and dwindling tax receipts. They should also start improving in the coming months. That will partly hinge on the Government action or lack of it, if any. Budget should make things amply clear as far as the policy roadmap is concerned. Till then, the market may remain sideways and rangebound.
Today we expect a healthy start on the back of firm global cues. The key indices may run out of steam if global markets fail to sustain Monday’s rise. The broader market resumed its out-performance of large caps and might extend the same. But, be extremely careful of what you are buying. With some improvement in sentiment, the Nifty may once again target 5000 but will face bumps along the way. Fresh selling is not ruled out at higher levels amid mounting external worries.
Foreign funds continue to be net sellers and pose a considerable risk to any meaningful bounce back from recent reversals. Among the other risk factors include: further RBI tightening on spike in inflation, uncertainties over monsoon and anxiety about policy-making. Fitch has warned India of deteriorating Government finances. Any further slippage and India's sovereign rating could be downgraded, Fitch says.
Some risks also remain on the external front. China may extend its recent tightening measures as the economy shows signs of overheating. The US economy has rebounded but is in danger of losing the momentum. In Europe, the major concern is on possible debt default by Greece and poor fiscal health of other nations like Portugal and Spain. Even other advanced economies like the UK and Japan are yet to fully recover from the downturn triggered by the financial meltdown.
US stocks closed higher on Monday, starting off a new month with strong gains, as investors welcomed better-than-expected reports on personal income, manufacturing and Exxon Mobil's profit.
The Dow Jones Industrial Average rose 118 points, or 1.2%. The S&P 500 index gained 15 points, or 1.4%. The Nasdaq added 24 points, or 1.1%.
Market breadth was positive. Gains were broad based, with 28 of 30 Dow components rising.
Wall Street ended one of the worst months in nearly a year Friday, with the Dow, S&P 500 and Nasdaq all closing at two-month lows. President Obama's plan to restrict trading at big banks, China's bank lending curbs and global debt worries all rattled investors.
But investors used the selloff as an opportunity to get back into stocks, continuing last year's trend.
With the US market up more than 50% from the lows of last March, a correction of 10% to 15% was not out of the question. Between the high on Jan. 19 and Friday's lows, the S&P 500 lost just under 7%.
There could be a further selloff on Wall Street, say some market observers. Equity valuations point to further consolidation or even an extended correction for the US stock market, among other indicators.
Exxon Mobil reported a profit of $6.05 billion or $1.27 per share, down about 18% from the fourth quarter of 2008 when oil prices were lower and fuel demand was higher. Nonetheless, results topped the forecasts of analysts.
With around 45% of the S&P 500 having reported results, earnings are currently on track to have risen 206% from a year ago, according to the latest from Thomson Reuters. But the rise is mostly due to cost-cutting and easy comparisons to an abysmal fourth quarter of 2008.
The financial sector in particular is set to bounce back. Strip out financial sector results and earnings are only expected to rise 15%. Revenue is set to rise about 7% year over year. Without financials, revenue is expected to rise about 2%.
President Obama unveiled a $3.8 trillion budget for 2011 that looks to both support the still-fragile economy and temper the nation's growing deficit.
Personal income rose 0.4% in December, the Commerce Department reported, surprising economists who were looking for an increase of 0.3% on average. Income rose 0.5% in the previous month.
Personal spending rose 0.2% after rising 0.3% in the previous month. Economists thought it would rise 0.3% in December.
The Institute for Supply Management's manufacturing index rose to 58.4 in January from 54.9 in December. Economists thought it would rise to 55.5.
Construction spending fell 1.2% in December, worse than the drop of 0.5% economists were expecting. Spending fell 1.2% in November.
Toyota announced plans to fix millions of gas pedals in recalled vehicles and said it has already shipped out parts to dealers. The fix eliminates the problem that caused pedals to stick, which prompted the recall of 2.3 million vehicles in the United States. Toyota shares gained 3.8%.
The dollar fell versus the euro and gained versus the yen.
COMEX gold for February delivery rose $21.30 to settle at $1,104.30 an ounce. Gold closed at an all-time high of $1,218.30 an ounce last month.
US light crude oil for February delivery added $1.54 to settle at $74.53 a barrel on the New York Mercantile Exchange.
Treasury prices fell, raising the yield on the 10-year note to 3.65% from 3.58% late on Friday.
European shares shook off early losses to close higher on their first session of the month, helped by gains for airline Ryanair and bid speculation surrounding utilities.
After spending most of the session in the red, the pan-European Dow Jones Stoxx 600 index finished up 0.6% to 248.42, paring year-to-date losses to 2.2%.
Some analysts believe the recent shaky events will most likely turn out to be manageable and not enough to de-rail the economic recovery. Also falling equity prices and rising earnings have left European equities as cheap as they have been since the July 2009 correction.
The UK's FTSE 100 index rose 1.1% to 5,247.41, the German DAX index added 0.8% to 5,654.48 and the French CAC-40 advanced 0.6% to 3,762.01.
Key indices picked up some pace today after going through phase of uncertainty and volatility last week. NSE Nifty was up by 18 points to close at 4,900. The BSE 30-share Sensex closed flat at 16,356, rebounding from day’s low of 16,161 and touching a high of 16,422. Consumer durables, metal, IT, healthcare and auto stocks were among the major gainers on Dalal Street.
Earlier, in the day, tracking weak cues from the Asian markets, Indian markets opened lower. However, they recovered from day's low and recouped all the intraday losses after the latest data showed that India's exports rose for the second straight month in December 2009. A recovery in Asian stocks and higher US index futures also aided a strong intraday rebound on the domestic bourses.
FIIs were net sellers in the cash segment on Friday at Rs9.96bn on a provisional basis. The local funds were net buyers of Rs10.11bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs4.9bn.
Auto companies were among the major gainers announcing sales figures. Domestic sales jumped 67.4% to 28,988 units, while exports surged 299% to 1,161 units in January 2010 over January 2009. Tractor sales increased 73% to 16,879 units.
Bullion metals add glaze
Prices rise after few consecutive days of slipping
Precious metal prices ended considerably higher on Monday, 01 February 2010. Prices rose due to better than expected economic reports and weak dollar.
Prices were slipping since last couple of days due to impending worries from China front where tightening monetary policies are bothering investors due to shaky demand of metals in coming months.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Monday, gold for April delivery ended at $1,105 an ounce, higher by $21.2 (1.9%) an ounce on the New York Mercantile Exchange. Last week, gold lost 0.6%. For January 2010, gold lost 1.2%. Year to date, gold has gained 0.7%.
Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end.
On Monday, March Comex silver futures ended higher by 47 cents (2.9%) at $16.66 an ounce. Last week, silver ended lower by 4.3%. In January 2010, silver shed 3.9%. Year to date in FY 2010, silver has dropped by almost 1%.
Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level.
Among economic data expected for the day, The Institute for Supply Management in US reported on Monday, 01 February 2010, that its index rose to 58.4 in January 2010 from 54.9 in December 2009. A figure of 56 was expected by market. It is the highest reading since August 2004.
Readings over 50% in the ISM diffusion index indicate that more firms are growing than contracting. The report indicated that nation's manufacturing firms were growing at a very strong pace in January 2010.
But enthusiasm over the report was a bit tempered by a steeper-than-expected 1.2% drop in construction spending during December. Separately, personal income during December was up 0.4% in a slightly sharper increase than had been expected, but spending during December increased at a softer-than-expected pace of 0.2%. Core personal consumption expenditures increased just 0.1% month-over-month, but that was in-line with expectations.
In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.2%.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.
At the MCX, gold prices for April delivery closed higher by Rs 303 (1.85%) at Rs 16,620 per ten grams. Prices rose to a high of Rs 16,661 per 10 grams and fell to a low of Rs 16,291 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed Rs 568 (2.22%) higher at Rs 26,068/Kg. Prices opened at Rs 25,560/kg and rose to a high of Rs 26,117/Kg during the day's trading.
Crude climbs up
Strong economic data and weak dollar lift crude prices
Crude oil prices ended higher on Monday, 1 February 2010. Prices rose due to better than expected economic reports and as cold temperature once again gripped parts of US.
Strong economic reports generally tend to push crude prices higher on anticipation of higher demand in coming months. The weak dollar further aided crude's climb today.
On Monday, crude-oil futures for light sweet crude for March delivery closed at $74.6/barrel (higher by $1.6 or 2%). Earlier, the contract had fallen to an intraday low of $72.49 a barrel. Last week, crude ended lower by 2.4%. In January 2010, crude ended lower by 8.3%.
Among economic data expected for the day, The Institute for Supply Management in US reported on Monday, 01 February 2010, that its index rose to 58.4 in January 2010 from 54.9 in December 2009. A figure of 56 was expected by market. It's the highest reading since August 2004.
Readings over 50% in the ISM diffusion index indicate that more firms are growing than contracting. The report indicated that nation's manufacturing firms were growing at a very strong pace in January 2010.
But enthusiasm over the report was a bit tempered by a steeper-than-expected 1.2% drop in construction spending during December. Separately, personal income during December was up 0.4% in a slightly sharper increase than had been expected, but spending during December increased at a softer-than-expected pace of 0.2%. Core personal consumption expenditures increased just 0.1% month-over-month, but that was in-line with expectations.
In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.2%.
Among other energy products on Monday, heating oil for the March rose 1.9% to $1.96 a gallon.
Also on Monday, natural gas for March delivery gained nearly 6% to $5.43 per million British thermal units.
Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 53.5% since then. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for February delivery closed Rs 57 (1.7%) higher at Rs 3,435/barrel. Natural gas for February delivery closed higher by Rs 11 (4.6%) at Rs 250.6/mmbtu.
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