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Thursday, February 18, 2010
Asian markets edge lower
Sensex, Sydney, Seoul, Hang Seng finish lower while Nikkei advance further
Stock markets in Asian region snapped its recent rally on Thursday, 18 February 2010, despite of a positive close on Wall Street overnight on the back of some encouraging economic reports, the investors turned cautious after companies reported declining earnings and as lower metal prices dragged down mining companies. The key benchmark indices in Indonesia, Hong Kong, Singapore and South Korea were down by 0.38% to 0.89%.
On Wall Street, stocks closed to the upside, lifted by economic data and promising earnings from Deere, and buoyed by the Federal Reserve's minutes from its most recent policy-making meeting. The Dow Jones Industrial Average added 40 points or 0.4% finishing the day at 10,309. The S&P 500 rose 5 points, or 0.4%, to 1100 and the Nasdaq gained 12 points, or 0.6%, to 2226.
In the commodity market, crude oil fell for the first time in three days as the dollar climbed and an industry report showed an increase in U.S. fuel supplies, fanning concern consumption from the world’s biggest energy user may be slow.
Crude oil for March delivery fell as much as 55 cents, or 0.7%, to $76.78 a barrel in electronic trading on the New York Mercantile Exchange. It was at $76.82 at 3:39 p.m. Singapore time. Yesterday, the contract rose 32 cents to $77.33, the highest settlement since Jan. 20. Futures have lost 3% this year.
Brent crude oil for April delivery fell as much as 55 cents, or 0.7%, to $75.72 a barrel on the London-based ICE Futures Europe exchange. It was at $75.74 at 3:42 p.m. Singapore time. Yesterday, the contract gained 0.8% to $76.27, the highest settlement since 20 January 2010.
Gold fell for a second day in London after the International Monetary Fund said it will begin selling bullion from its reserves on the open market. The IMF has 191.3 metric tons left to sell and said it will conduct the on-market sales in a phased manner over time. Prices also slid as the dollar strengthened before a report that may show the index of U.S. leading indicators rose for a 10th month, pointing to an economy that will keep expanding through this year’s first half.
Gold for immediate delivery fell as much as $8.66, or 0.8%, to $1,098.15 an ounce and was at $1,102.15 at 9:15 a.m. London time. The metal dropped 1.1% yesterday after the IMF announcement. Bullion for April delivery was 1.6% lower at $1,102.30 on the New York Mercantile Exchange’s Comex unit.
In the currency market, the U.S. dollar ended in Asia continuing with the mixed performance seen since the morning, with the U.S. currency marking gains versus the euro but losing some ground against the yen.
The Japanese yen was softened against greenback on Thursday. The Japan’s currency yen was quoted 90.86 against the greenback.
The Hong Kong dollar was trading at HK$ 7.7706 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 today as plans of the International Monetary Fund (IMF) to sell a portion of its gold holdings lowered commodity-driven currencies. At the local close, the dollar was trading at $US0.8958, down 0.6 per cent from Wednesday’s close of $US0.9012.
In Wellington trades, the New Zealand dollar eased today as the United States dollar rose amid ongoing worries about sovereign debt and on news that the International Monetary Fund (IMF) is selling more of its bullion holdings. The NZ dollar was at US70.05c at 5pm from US70.45c at the same time yesterday.
The South Korean won ended at 1,150.50 won versus the greenback, down 8.30 won from Wednesday's close.
In equities, most Asian markets fell, with Australian shares weaker as Qantas disappointed investors with its first-half results, while miners declined after the International Monetary Fund said it plans to sell gold on the open market.
In Japan, the key indices finished the choppy session higher as firmer defensive shares outweighed profit taking a day after the Nikkei index registered gains in over 2-months. Higher Japan’s futures index also supported gains as US industry production and housing starts exceeded economists’ estimates and the dollar strengthened versus the yen. Broad range of defensive shares rose as resilient in the face of uncertainty overseas.
At the settlement, the Nikkei 225 Stock Average index was at 10,335.69, added 28.86 points, or 0.28%. The broader Topix of all First Section issues on the Tokyo Stock Exchange rose 0.1 points, or 0.01%, to 904.73.
In economic section, the Bank of Japan hold their key interest rates steady at 0.1% as widely expected, while maintaining its assessment on the state of the nation's economy. Foreign investors bought a net 107.1 billion yen of Japanese stocks and 318 million yen of Japanese bonds, while net seller of 2.94 billion yen of money market instruments in the week to 13 February 2010, Ministry of Finance data showed on Thursday. Domestic investors sold a net 1.55 billion yen of Japanese stocks, 4.26 billion yen of Japanese bonds, and 96 million yen of money market instruments in the same week.
In Hong Kong, profit-takers have led the Hong Kong share market down with materials and properties shares among the biggest losers after the previous day's sharp rise, however better than expected US economic data pared declines. At the closing bell, the Hang Seng Index slid 111.86 points, or 0.54%, to 20,422.15, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 Mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, fell 106.67 points, or 0.91%, to 11,60167.
In Australia, the Australian shares fell as profit taking triggered after the two days of good gains and mixed bag interim earnings reports from companies. Banking and the mining stocks were the biggest drags. Although market losses were limited, helped by firmer Wall Street overnight and on an upbeat economic assessment from RBA. At the closing bell, the benchmark S&P/ASX200 index eased 13 points, or 0.28%, to 4,654.90, meanwhile the broader All Ordinaries has lost 12.90 points, or 0.28%, to 4,673.90.
In economic section, the Reserve Bank of Australia sold a net A$295 million in the foreign exchange market in January. The RBA also bought a net A$365 million in the forex market from the Australian government in January.
The value of total merchandise imported into the country decreased seasonally adjusted A$741 million or 4% to A$16.7 billion in January, the Australian Bureau of Statistic said Thursday. In original terms, imports slid 13% to A$15.39 billion in January from A$17.63 billion in December.
National Australia Bank’s business confidence index rose 2.0 points to 18 for the quarter ended December 2009. The accompanying business conditions index increased by 4 points to 9. The employment sub-index rose 5 points to a score at 1 in December quarter.
In New Zealand, equities gave up its two-day winning streak to end in the negative terrain. The NZX 50 dipped down by 0.30% or 9.29 points to 3101.77. Meanwhile, the NZX 15 decreased 0.25% or 14.24 points to close at 5585.66.
On the economic front, New Zealand consumers are a bit more downbeat this month after data showed unemployment rose to a 17-year high at the end of last year, sapping the elevated optimism of last month. Confidence fell 7.8 points to 123.6 in February, according to the ANZ Roy Morgan Consumer Confidence Survey from a three-year high in January. The current conditions measure fell 10 points to 100 while future conditions index dropped 7 points to 139.
In South Korea, stocks finished lower as investors scrambled to lock in profits after two straight rallying sessions. Snapping the short winning streak, the benchmark Korea Composite Stock Price Index (KOSPI) declined 6.24 points or 0.38% to end at 1,621.19.
In Singapore, the shares were slightly lower with investors took breather after the previous day strong rally as weak Asian market and lower US futures weighed on investor sentiment. At the closing bell, the blue chip Straits Times Index was at 2,769.19, slid 24.87 points or 0.89%.
In Philippines, the stock reversed the early gains, closing below the crucial 3000 mark. At the final bell, the benchmark index PSEi lost 0.62% or 18.73 points to 2,999.94, while the All Shares index tumbled 0.24% or 4.74 points to 1,903.40.
In India, the key benchmark indices fell, snapping last two days' gains as Asian stocks fell and US index futures edged lower. Metal, realty, sugar and auto stocks fell. The BSE 30-share Sensex was down 101.07 points or 0.62% to 16,327.84. The S&P CNX Nifty was down 26.25 points or 0.53% to 4887.75.
On the economic front, food inflation rose for the fourth straight week in early February 2010, heightening worries that it was driving up headline inflation past official forecasts and increasing the chance of the Reserve Bank of India (RBI) pushing up rates. The government data showed the food price index rose 17.97% for the year through 6 February 2010. The fuel price index rose 9.89% while primary articles price index rose 16.23 % for the year through 6 February 2010.
Elsewhere, Malaysia’s Kula Lumpur Composite index finished slightly lower at 1259 while stock markets in Indonesia’s Jakarta Composite index gave up by 21.31 points ending the day lower at 2560.03.
In other regional market, European shares traded in a tight range on Thursday amid a slew of earnings reports, as sharp losses from Societe Generale, Daimler and Akzo Nobel limited upside. Among major European equity markets, the German DAX index gained 0.2% to 5,655, the French CAC-40 index increased by 0.2% or 6.18 points to 3,731 and the U.K. FTSE 100 index spurted 0.4% or 22.12 points to 5,299.
Market for a breather
Today's major news
Rural Electrification Corporation fixes follow-on public offer (FPO) at Rs203; the stock closes 2.68% lower
Suzlon bags 8.7MW order from Larsen & Toubro; the stock slips 3.34%
Food inflation rise to 17.97%
Castrol India's Q4 net profit up by 71%; the stock tumbles 8.08%
Dishman announces strategic alliance with Codexis; the stock rises 0.77%
Post-market summary
Global signals
European stocks rose for the fourth straight session on Thursday and at the time of writing this report FTSE 100 was up by 0.34%.
All the major Asian indices closed lower. Shanghai Composite and Taiwan index were closed today. SGX Nifty closed 18 points lower.
In USA, investors are looking for key data related to initial claims, continuing claims, PPI of January and leading indicators of January.
Indian indices
At opening bell the Sensex traded seven points lower at 16421, but soon turned positive to hit the day's high of 16452. However, on news that Reliance Industries has to hike its bid Lyondell Basell, Reliance industries went down and along went the Sensex and Nifty. The low of the day was 16287. At closing bell, the Sensex was 101 points lower at 16328. Nifty closed 26 points lower at 4888.
Market sentiment
The market breadth, the number of advancing shares to declining shares, was Negative. Of the total 2,905 stocks traded on the BSE, 1,760 stocks declined, whereas 1,060 stocks advanced. Eighty-five stocks closed unchanged.
Sectoral & stock screening
In a rather dull trading session, realty, metal and oil & gas scrips were hurt the most; the three being down by 2.12%, 2.01% and 1.37% respectively. Consumer durables (0.52%) banking, information technology, teck and health care however held their fort. The remaining indices were down marginally.
The star stock was BPCL, up by 4.69%, followed by Apollo Hospital that surged 4.62% and Tata Chemicals that rose 4.51%. Among laggards, Castrol India slid the most by 8.08%, followed by Indiabulls Real Estate that fell 5.66% and Unitech that shed 4.63%.
Viewing volumes
Realty major Unitech saw 0.95 crore shares changing hands on the BSE followed by wind power major Suzlon Energy (0.75 crore shares), Rashtriya Chemicals and Fertilisers (0.34 crore shares), Ispat Industries (0.33 crore shares) and IDFC (0.31 crore shares).
BSE Bulk Deals to Watch - Feb 18 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
18/2/2010 530901 ACIL Cot Inds PRAKASH K SHAH SHARES & SECURITIES PVT LTD S 93000 16.90
18/2/2010 530621 Akar Tools ANANTROOP TRADING PVT LTD B 79400 38.36
18/2/2010 530621 Akar Tools SANJAY KOTHARI S 79400 38.34
18/2/2010 507526 Associated Alco PRASANN KUMAR KEDIA HUF B 44200 34.00
18/2/2010 507526 Associated Alco SAFFRON PLANTATION PRIVATE LIMITED S 43200 34.00
18/2/2010 522005 Austin Engr USMAN MOH HANIF POOTHAWALA S 35249 86.01
18/2/2010 522005 Austin Engr KASAMBHAI U SHEKH S 25484 86.01
18/2/2010 531591 Bampsl Sec NAVAL KISHORE GUPTA B 739000 1.18
18/2/2010 531591 Bampsl Sec NAVAL KISHORE GUPTA S 500000 1.10
18/2/2010 531591 Bampsl Sec PRAKASH CHAND GUPTA S 433639 1.17
18/2/2010 524687 Basant Agro KIRANMAHENDER PALBAHL S 51775 53.91
18/2/2010 505052 Clutch Auto HITESH SHASHIKANT JHAVERI B 113920 63.16
18/2/2010 505052 Clutch Auto BP FINTRADE PRIVATE LIMITED B 120495 63.11
18/2/2010 505052 Clutch Auto BP FINTRADE PRIVATE LIMITED S 144326 63.12
18/2/2010 505052 Clutch Auto HITESH SHASHIKANT JHAVERI S 120281 63.20
18/2/2010 530337 Exelon Infra HITESH SHASHIKANT JHAVERI B 22162 17.20
18/2/2010 530337 Exelon Infra JMP SECURITIES PVT LTD B 209881 15.76
18/2/2010 530337 Exelon Infra VAIBHAVI PARESH SHETH B 90000 15.60
18/2/2010 530337 Exelon Infra POTINENI KOTESWARA RAO B 50000 16.00
18/2/2010 530337 Exelon Infra J V STOCK BROKING PRIVATE LIMITED B 58119 16.11
18/2/2010 530337 Exelon Infra BP FINTRADE PRIVATE LIMITED B 62138 15.68
18/2/2010 530337 Exelon Infra BP FINTRADE PRIVATE LIMITED S 62137 15.67
18/2/2010 530337 Exelon Infra KAMALA KANTA GUPTA S 100000 15.93
18/2/2010 530337 Exelon Infra J V STOCK BROKING PRIVATE LIMITED S 66371 16.12
18/2/2010 530337 Exelon Infra PARESH RAMJIBHAI CHAUHAN S 28100 15.60
18/2/2010 530337 Exelon Infra VAIBHAVI PARESH SHETH S 90000 15.60
18/2/2010 530337 Exelon Infra JMP SECURITIES PVT LTD S 209881 16.09
18/2/2010 511668 Fact Enterprise XITIJ INVESTMENTS S 29800 21.95
18/2/2010 500142 FGP VISHAL AGARWAL B 59590 6.58
18/2/2010 500142 FGP AJIT VAKIL B 105000 6.90
18/2/2010 500142 FGP VISHAL AGARWAL S 121901 6.76
18/2/2010 532022 Filatex Fash SAGAR TEX CREATION PRIVATE LIMITED B 70000 12.95
18/2/2010 532022 Filatex Fash ESSAR STOCKS & SECURITIES P LTD S 70000 12.95
18/2/2010 531863 Gee Kay Finance SALYA PRIVATE LTD. B 20585650 61.48
18/2/2010 531863 Gee Kay Finance MUNSHI INAYAT S 10016550 61.50
18/2/2010 531863 Gee Kay Finance IMTIAZ KHODA S 9844100 61.50
18/2/2010 513059 GS Auto PRASHANT MAHADEV KAMBLE B 123593 57.57
18/2/2010 513059 GS Auto NILESH EKNATH BHOIR S 72293 57.45
18/2/2010 513059 GS Auto PRASHANT MAHADEV KAMBLE S 53446 57.47
18/2/2010 504036 Hind Rectifiers TRANSGLOBAL SECURITIES LTD. B 44092 86.28
18/2/2010 504036 Hind Rectifiers SHYAM SUNDER BIYANI B 40255 86.26
18/2/2010 504036 Hind Rectifiers SHYAM SUNDER BIYANI S 40255 86.55
18/2/2010 504036 Hind Rectifiers TRANSGLOBAL SECURITIES LTD. S 45092 86.52
18/2/2010 517571 IMP Powers TOUCHSTONE FINVEST SERVICES PRIVATE LIMITED B 49909 118.25
18/2/2010 517571 IMP Powers ARISTRO FINANCIAL SERVICES LTD. B 52818 131.27
18/2/2010 517571 IMP Powers ARISTRO FINANCIAL SERVICES LTD. S 52818 118.73
18/2/2010 517571 IMP Powers TOUCHSTONE FINVEST SERVICES PRIVATE LIMITED S 49909 131.44
18/2/2010 523467 Jai Mata Glass RAMIK RAINA B 76122 3.81
18/2/2010 523467 Jai Mata Glass OMPARKASH GUPTA B 100000 3.80
18/2/2010 523467 Jai Mata Glass KAPIL NARENDRA GUPTA B 100000 3.89
18/2/2010 523467 Jai Mata Glass HEMALATHA CHINTALA S 85000 3.88
18/2/2010 532624 Jindal Photo A K G STOCK BROKERS PRIVATE LIMITED B 54460 229.73
18/2/2010 532624 Jindal Photo SMART EQUITY BROKERS PRIVATE LIMITED B 102802 231.94
18/2/2010 532624 Jindal Photo SANJEEV SINGHAL B 96568 230.54
18/2/2010 532624 Jindal Photo OPG SECURITIES P LTD B 158894 229.04
18/2/2010 532624 Jindal Photo OPG SECURITIES P LTD S 158894 229.11
18/2/2010 532624 Jindal Photo SANJEEV SINGHAL S 96568 230.77
18/2/2010 532624 Jindal Photo SMART EQUITY BROKERS PRIVATE LIMITED S 102802 232.24
18/2/2010 532624 Jindal Photo A K G STOCK BROKERS PRIVATE LIMITED S 54460 229.77
18/2/2010 524109 Kabra Extr OPG SECURITIES P LTD B 54648 219.60
18/2/2010 524109 Kabra Extr OPG SECURITIES P LTD S 54648 219.51
18/2/2010 530255 KAY Power SUNDER DASS AGARWAL B 107610 16.28
18/2/2010 530255 KAY Power ASHOK KUMAR SONI B 65400 16.87
18/2/2010 530255 KAY Power GIRRAJ PRASAD GUPTA B 100450 16.35
18/2/2010 530255 KAY Power BAMPSL SECURITIES LTD B 171800 16.99
18/2/2010 530255 KAY Power NAVAL KISHORE GUPTA B 419311 17.04
18/2/2010 530255 KAY Power NAVAL KISHORE GUPTA S 530094 16.29
18/2/2010 530255 KAY Power BAMPSL SECURITIES LTD S 89816 17.02
18/2/2010 530255 KAY Power SUNIL KUMAR GUPTA S 80000 17.19
18/2/2010 530255 KAY Power SUNDER DASS AGARWAL S 85625 17.06
18/2/2010 530255 KAY Power KAILASH CHAND GUPTA S 76350 16.99
18/2/2010 530255 KAY Power B.S.KHANDELWAL S 100000 17.30
18/2/2010 531366 Kohinoor Broad S V ENTERPRISES B 702826 5.89
18/2/2010 532997 KSK Energy K S K ENERGY COMPANY PVT LTD B 2642000 190.00
18/2/2010 532997 KSK Energy TAIB BANK A/C TSML S 2642000 190.00
18/2/2010 590082 LOHIA SECURI FORTUNE INTERFINANCE LTD S 29111 68.26
18/2/2010 503685 Mediaone Global SHRIPATHEE INVESTMENTS PVT LTD S 100000 72.65
18/2/2010 523144 Medicaps ASHOK KUMAR BILGAIYAN B 18921 66.66
18/2/2010 523144 Medicaps ASHOK KUMAR BILGAIYAN S 18921 67.04
18/2/2010 523385 Nilkamal OPG SECURITIES P LTD B 65790 269.95
18/2/2010 523385 Nilkamal OPG SECURITIES P LTD S 65790 270.06
18/2/2010 532986 Niraj Cement RAVI BRIJKISHORE SAXENA B 66701 57.70
18/2/2010 532986 Niraj Cement BALCHAND DANI B 65886 57.97
18/2/2010 532986 Niraj Cement RAVI BRIJKISHORE SAXENA S 52046 57.48
18/2/2010 532986 Niraj Cement BALCHAND DANI S 65886 57.92
18/2/2010 531996 Odyssey Corp VACHI SECURITIES B 30000 66.05
18/2/2010 531996 Odyssey Corp EFORCE INDIA PRIVATE LIMITED S 32200 66.26
18/2/2010 531496 Omkar Overseas RATHOD MANOJ CHHAGANLAL HUF B 25000 50.00
18/2/2010 531496 Omkar Overseas RAM RAJU KAMBLE B 25000 49.95
18/2/2010 531496 Omkar Overseas VIJAY VELJIBHAI PADHARIA S 25000 50.00
18/2/2010 531496 Omkar Overseas BHARATKUMAR SURESHCHANDRA BHJATT S 41050 47.75
18/2/2010 531496 Omkar Overseas VICKY RAJESHBHAI JHAVERI S 59500 49.74
18/2/2010 512097 Oregon Comm PATEL SHAILESH JIVANLAL B 6365 158.90
18/2/2010 512097 Oregon Comm KRUPA SANJAY SONI B 4890 158.71
18/2/2010 512097 Oregon Comm SANJAY JETHALAL SONI B 9000 159.30
18/2/2010 512097 Oregon Comm OMPARKASH GUPTA B 5635 159.99
18/2/2010 512097 Oregon Comm NIRMALA MAHIPAL B 7892 159.67
18/2/2010 512097 Oregon Comm KRUPA SANJAY SONI B 28642 162.33
18/2/2010 512097 Oregon Comm ROHNIL BORADIA B 18507 160.89
18/2/2010 512097 Oregon Comm SHANTILAL MANEKLAL SANCHETI B 6002 159.75
18/2/2010 512097 Oregon Comm MEHUL SHANTILAL SANCHETI B 7750 165.51
18/2/2010 512097 Oregon Comm HIRALBEN LALITBHAI THAKKAR B 6057 162.29
18/2/2010 512097 Oregon Comm VIMAL RATHOD B 5940 162.90
18/2/2010 512097 Oregon Comm VIMAL RATHOD S 6231 163.57
18/2/2010 512097 Oregon Comm SHANTILAL MANEKLAL SANCHETI S 6002 158.73
18/2/2010 512097 Oregon Comm MEHUL SHANTILAL SANCHETI S 7750 158.76
18/2/2010 512097 Oregon Comm HIRALBEN LALITBHAI THAKKAR S 6057 157.99
18/2/2010 512097 Oregon Comm ROHNIL BORADIA S 18507 159.82
18/2/2010 512097 Oregon Comm KRUPA SANJAY SONI S 31442 163.18
18/2/2010 512097 Oregon Comm NIRMALA MAHIPAL S 5392 161.25
18/2/2010 512097 Oregon Comm KRUPA SANJAY SONI S 7032 160.07
18/2/2010 512097 Oregon Comm OMPARKASH GUPTA S 7253 161.66
18/2/2010 512097 Oregon Comm NIRAJ SUBHASH GANDHI S 5000 160.75
18/2/2010 511702 Parsharti Inv KRUPA SANJAY SONI S 19770 26.13
18/2/2010 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA B 46354 32.77
18/2/2010 507490 Rana Sugars OUDH FINANCE & INVESTMENT PVT LTD B 1020000 13.75
18/2/2010 590077 Ranklin Sol JAYA VEERA VENKATA DURGA PRAKASH MADDULA B 73467 54.39
18/2/2010 590077 Ranklin Sol SATYANARAYANA VARAPRASAD GARIKIPATY S 30000 53.51
18/2/2010 530517 Relaxo Foot MOTILAL OSWAL SECURITIES LTD S 75306 210.07
18/2/2010 531099 Rubra Med NARENDER KUMAR GUPTA S 50000 18.00
18/2/2010 500368 Ruchi Soya AIWO LTD B 2700000 92.44
18/2/2010 530025 Samyak Intl J V STOCK BROKING PRIVATE LIMITED B 15468 22.71
18/2/2010 530025 Samyak Intl J V STOCK BROKING PRIVATE LIMITED S 15468 22.85
18/2/2010 532793 Shree Ashtavina KANUDIA CAPITAL AND MANAGEMENT SERVICES PVT LTD B 1000000 16.93
18/2/2010 532793 Shree Ashtavina SUMAN DEVI B 1291125 16.58
18/2/2010 532793 Shree Ashtavina TRANS FINANCIAL RESOURCES LIMITED B 1540162 16.66
18/2/2010 532793 Shree Ashtavina SUMAN DEVI S 1291125 16.78
18/2/2010 532793 Shree Ashtavina KANUDIA CAPITAL AND MANAGEMENT SERVICES PVT LTD S 1411617 16.46
18/2/2010 532793 Shree Ashtavina DRB SECURITIES PVT LTD S 831402 16.80
18/2/2010 532793 Shree Ashtavina TRANS FINANCIAL RESOURCES LIMITED S 1540162 16.65
18/2/2010 505827 SNL Bearings NANDA PRAMOD DESAI S 21150 33.15
18/2/2010 526133 Supertex Inds VEENA G MUNDRA B 500000 3.41
18/2/2010 533157 SYNCOM HEAL VICKY M GUPTA B 116363 82.89
18/2/2010 533157 SYNCOM HEAL GENUINE STOCK BROKERS PVT. LTD. B 119149 82.68
18/2/2010 533157 SYNCOM HEAL OPG SECURITIES P LTD B 90349 82.65
18/2/2010 533157 SYNCOM HEAL GENUINE STOCK BROKERS PVT. LTD. S 119149 82.73
18/2/2010 533157 SYNCOM HEAL VICKY M GUPTA S 116363 83.12
18/2/2010 533157 SYNCOM HEAL OPG SECURITIES P LTD S 90349 82.72
18/2/2010 511431 Vakrangee Soft HIGHPOINT TRADING COMPANY PRIV B 240000 81.82
18/2/2010 511431 Vakrangee Soft VINOD KUMAR BOHRA S 240000 81.82
18/2/2010 531574 VAS Infra HITESH SHASHIKANT JHAVERI S 64672 56.45
18/2/2010 531249 Well Pack Papers SANDEEP GOMASE B 26100 440.33
18/2/2010 531249 Well Pack Papers SANDEEP GOMASE S 26100 440.98
18/2/2010 514348 Winsome Yarns DINESH BROTHERS PVT LTD B 3000000 1.78
18/2/2010 514348 Winsome Yarns SATYAM COMBINES PVT LTD S 3000000 1.78
18/2/2010 512217 Woolite Merc EVER GREEN WEALTH PVT LTD. B 10000 32.00
18/2/2010 532177 Zigma Software JMP SECURITIES PVT LTD B 866608 8.36
18/2/2010 532177 Zigma Software JMP SECURITIES PVT LTD S 1117533 8.50
18/2/2010 530091 Zyden Gentec SAURABHKUMAR RASIKLAL GANDHI B 200000 2.45
18/2/2010 530091 Zyden Gentec DEEPAK REAL ESTATEDEVE. I. P.L S 222933 2.46
* B - Buy, S - Sell
NSE Bulk Deals to Watch - Feb 18 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
18-FEB-2010,BIL,Bhartiya Intl Limited,RAHUL GUPTA,BUY,57896,75.67,-
18-FEB-2010,CLUTCHAUTO,Clutch Auto Limited,BP FINTRADE PRIVATE LIMITED,BUY,207607,63.10,-
18-FEB-2010,FAME,Fame India Limited,RELIANCE CAPITAL PARTNERS,BUY,178510,79.40,-
18-FEB-2010,GOLDTECH,Goldstone Tech Ltd.,OBEROI DIMPLE,BUY,95491,39.56,-
18-FEB-2010,JINDALPHOT,Jindal Photo Limited,MANSUKH SECURITIES & FINANCE LIMITED,BUY,52710,226.86,-
18-FEB-2010,JINDALPHOT,Jindal Photo Limited,NIKON FINLEASE PVT. LTD,BUY,53627,226.61,-
18-FEB-2010,JINDALPHOT,Jindal Photo Limited,OM INVESTMENTS,BUY,125332,228.08,-
18-FEB-2010,KSK,KSK Energy Ventures Limit,K S K ENERGY COMPANY PVT LTD,BUY,2642555,190.00,-
18-FEB-2010,NILKAMAL,Nilkamal Limited,OM INVESTMENTS,BUY,63998,269.65,-
18-FEB-2010,NILKAMAL,Nilkamal Limited,SUNEET LAL,BUY,69134,265.71,-
18-FEB-2010,RANASUG,RANA SUGARS LTD,OUDH FINANCE & INVESTMENT PVT LTD,BUY,1050000,13.75,-
18-FEB-2010,RUCHISOYA,Ruchi Soya Inds Ltd.,AIWO LIMITED,BUY,3300000,92.25,-
18-FEB-2010,SHREEASHTA,Shree Ashtavinayak Cine V,SUMAN,BUY,834332,16.86,-
18-FEB-2010,SHREEASHTA,Shree Ashtavinayak Cine V,TRANS FINANCIAL RESOURCES LTD,BUY,1899644,16.74,-
18-FEB-2010,SYNCOM,Syncom Healthcare Ltd,AMAR KANAIYALAL CHAUHAN,BUY,111404,82.30,-
18-FEB-2010,SYNCOM,Syncom Healthcare Ltd,AUM SECURITIES PRIVATE LTD.,BUY,91218,83.14,-
18-FEB-2010,SYNCOM,Syncom Healthcare Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,120112,82.52,-
18-FEB-2010,SYNCOM,Syncom Healthcare Ltd,VICKY M GUPTA,BUY,106813,81.43,-
18-FEB-2010,BIL,Bhartiya Intl Limited,RAHUL GUPTA,SELL,46851,77.23,-
18-FEB-2010,BIL,Bhartiya Intl Limited,SAL REAL ESTATES (P) LTD,SELL,50000,75.02,-
18-FEB-2010,CLUTCHAUTO,Clutch Auto Limited,BP FINTRADE PRIVATE LIMITED,SELL,204605,63.08,-
18-FEB-2010,GOLDTECH,Goldstone Tech Ltd.,OBEROI DIMPLE,SELL,95491,39.83,-
18-FEB-2010,JINDALPHOT,Jindal Photo Limited,MANSUKH SECURITIES & FINANCE LIMITED,SELL,52710,227.40,-
18-FEB-2010,JINDALPHOT,Jindal Photo Limited,NIKON FINLEASE PVT. LTD,SELL,53627,227.17,-
18-FEB-2010,JINDALPHOT,Jindal Photo Limited,OM INVESTMENTS,SELL,125332,228.40,-
18-FEB-2010,KSK,KSK Energy Ventures Limit,TAIB BANK A/C TSML,SELL,2642555,190.00,-
18-FEB-2010,NILKAMAL,Nilkamal Limited,OM INVESTMENTS,SELL,63998,269.84,-
18-FEB-2010,NILKAMAL,Nilkamal Limited,SUNEET LAL,SELL,69134,265.74,-
18-FEB-2010,SHREEASHTA,Shree Ashtavinayak Cine V,DKG SECURITIES PVT. LTD.,SELL,1000000,16.74,-
18-FEB-2010,SHREEASHTA,Shree Ashtavinayak Cine V,SUMAN,SELL,816857,16.73,-
18-FEB-2010,SHREEASHTA,Shree Ashtavinayak Cine V,TRANS FINANCIAL RESOURCES LTD,SELL,1520151,16.60,-
18-FEB-2010,SYNCOM,Syncom Healthcare Ltd,AMAR KANAIYALAL CHAUHAN,SELL,111404,82.79,-
18-FEB-2010,SYNCOM,Syncom Healthcare Ltd,AUM SECURITIES PRIVATE LTD.,SELL,91218,80.48,-
18-FEB-2010,SYNCOM,Syncom Healthcare Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,120112,82.62,-
18-FEB-2010,SYNCOM,Syncom Healthcare Ltd,VICKY M GUPTA,SELL,106813,83.20,-
RIL leads 101- points Sensex slide
The benchmark key indices snapped last two days' winning streak as lower Asian stocks weighed on investor sentiment. The rally in the preceding two sessions also prompted investors to book profit. The BSE 30-share Sensex fell 101.07 points or 0.62%, up 40.67 points from the day's low and off 124.67% points from the day's high.
India VIX, a volatility index based on the S&P CNX Nifty index option prices, rose 2.48% to 29.76. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.
The market dropped in early trade as most Asian stocks fell. It cut losses in morning trade. The market once again trimmed losses after hitting fresh intraday lows in mid-morning trade. The market once gain came off the lows in early afternoon trade. However, the intraday rebound proved short lived. The market lost ground again in afternoon trade. The Sensex hit fresh a fresh intraday low in mid-afternoon trade.
The market may remain volatile in the near term as traders roll over positions from February 2010 derivatives contracts to March 2010 contracts ahead of the expiry of the near-month February 2010 contracts on Thursday, 25 February 2010.
European stocks fluctuated as disappointing results from Akzo Nobel NV offset better-than-estimated earnings from ABB. The key benchmark indices in France and UK rose by between 0.7% to 0.31%. Germany's DAX was down 0.05%.
Asian stocks fell on Thursday from two-week highs after companies reported declining earnings and as lower metal prices dragged down mining companies. The key benchmark indices in Indonesia, Hong Kong, Singapore and South Korea were down by between 0.38% to 0.89%.
Japan's Nikkei rose 0.28% in a volatile trade. The Bank of Japan (BoJ) at a policy meeting today kept its key interest rate on hold at 0.1% by unanimous vote as widely expected, maintained its overall economic view, and didn't issue any new policy initiatives, though it repeated its pledge to do all it could to pull Japan out of deflation.
Bank of Japan Governor Masaaki Shirakawa said Thursday that the central bank's understanding of midterm price stability isn't an explicit inflation target. "If we focus on price movements too much we could overlook imbalances in the overall economy," Shirakawa told reporters. Finance Minister Naoto Kan explicitly said Tuesday that both the government and the BoJ both aim for falling domestic prices to rise about 1% a year.
Trading in US index futures indicated that the Dow could fall 4 points at the opening bell on Thursday, 18 February 2010.
Wall Street ended in positive zone after a choppy session on Wednesday, 17 February 2010. Positive economic data supported gains. US housing starts rose in January 2010. The Dow Jones Industrial average gained 40.43 points, or 0.39%, to 10,309.24. The Standard & Poor's 500 Index added 4.64 points, or 0.42%, to 1,099.51. The Nasdaq Composite Index rose 12.10 points, or 0.55%, to 2,226.29.
The Federal Reserve raised its 2010 US GDP forecast to 3.2% from 3%. Despite the improved forecast, officials continue to believe that economic conditions warrant exceptionally low interest rates. Officials also worry about the impact of the persistently high unemployment.
The head of the International Monetary Fund Dominique Strauss-Kahn has urged individual countries to act fast and work together on financial regulatory reform, if the problem of preventing another crisis is to be tackled efficiently.
Closer home, the Reserve Bank of India (RBI) governor D Subbarao said on Thursday that the central bank stands by its end-March inflation forecast of 8.5%, and expects current inflation to moderate by July. The central bank governor said that he hops that the hike in the cash reserve ratio (CRR) at a recent policy review will go a long way in managing inflation expectation.
Food inflation rose for the fourth straight week in early February 2010, heightening worries that it was driving up headline inflation past official forecasts and increasing the chance of the Reserve Bank of India (RBI) pushing up rates. The government data showed the food price index rose 17.97% for the year through 6 February 2010. The fuel price index rose 9.89% while primary articles price index rose 16.23 % for the year through 6 February 2010.
Farm minister Sharad Pawar said on Wednesday that high food prices have started to ease and will dip further next month. But Finance Minister Pranab Mukherjee is still worried about inflation amid signs that the headline number may hit 10% by March. Despite a string of government efforts to ease concerns, rising prices are posing a big challenge for the Congress-led government, particularly high food prices, and they may prompt the central bank to raise interest rates even before April. Pawar said prices would start coming down in the next seven to 10 days. Food prices rose an annual 17.4% in January 2010, easing slightly from a rise of 19.2% in December.
But, the headline inflation accelerated to its fastest pace in 14 months in January 2010, rising an annual 8.56%, above the central bank's revised end-March inflation forecast of 8.5%. On Tuesday, India's chief statistician Pronab Sen said that headline inflation could top 10% by the end of March. A government panel has advised eliminating price controls for gasoline and diesel and an income-linked rise in kerosene and cooking gas prices. The RBI is widely expected to raise borrowing rates at its April review after surprising markets with a bigger-than-expected rise in banks' cash reserve requirements in January.
Pranab Mukherjee also said economic growth in the fiscal year 2010/11 (April-March) could top 8%, following a growth at around 7.5% in the current fiscal year ending March. The government officials have forecast the economic growth in the current year in the range of 7-8%.
The government will review in April stimulus measures announced earlier for exporters, Trade Secretary Rahul Khullar said in New Delhi on Thursday. Exports rose an annual 9.3% in December to $14.6 billion, the second consecutive rise after 13 straight months of decline.
The next major trigger for the stock market is the Union Budget 2010-2011 on 26 February 2010. Among the key issues, analysts and economists expect the Finance Minister to provide a road map for the introduction of the key direct and indirect tax reforms viz. the direct tax code (DTC) and the Goods & Services Tax (GST) in the Budget. The GST will enable the Indian corporate sector to get much-needed relief from a multiplicity of state and Central taxes. However, several critical issues need to be resolved before it can be put in place. The Finance Minister must utilize this opportunity to effect a smooth transition to this new system.
The hope of direct tax reform has risen with the release of the draft Direct Tax Code by the government in calendar 2009. The Direct Taxes Code is supposed to replace the Income Tax Act by consolidating and amending income tax provisions for all categories of people and institutions. The DTC proposes doing away with tax exemptions and bringing under the tax purview a number of entities including trusts that pay no tax at the moment. The thrust of the new code is to promote efficiency and equity by eliminating distortions in the tax structure, introducing moderate levels of taxation and expanding the tax base.
Meanwhile, the government may increase excise duties as a first step towards a gradual winding down of fiscal stimulus measures. It may also raise the service tax rate to 12% from 10%. It may be recalled that the government had slashed the Central Value Added Tax (Cenvat) rate for excise duty from 14% to 8% in two rounds starting in December 2008. It had also cut service tax by 2 percentage points. These reductions were effected in order to provide a stimulus to domestic industry. Since the overall prospects for growth are much brighter today, the finance minister may withdraw a part of the stimulus in order to boost tax revenue.
The Finance Minster may project a lower fiscal deficit for 2010-11 based on higher revenue projections due to economic rebound. It remains to be seen if there are structural reforms to reduce the subsidy burden such as decontrol of petrol and diesel prices as recommended by the Kirit Parikh committee recently.
It also remains to be seen if there is any progress on financial sector reforms. The pending financial sector reforms include raising the foreign direct investment (FDI) cap in private sector insurance companies from 26% to 49% - a Bill for which is pending in Parliament.
As far as government expenditure is concerned, the thrust areas could be agriculture, water resources, power, roads & other infrastructure projects and social sector schemes.
The BSE 30-share Sensex fell 101.07 points or 0.62% to 16,327.84. The Sensex fell 141.74 points at the day's low of 16,287.17 in mid-afternoon trade. The barometer index rose 23.60 points at the day's high of 16,452.51 in early trade.
The S&P CNX Nifty declined 26.25 points or 0.53% to 4887.75.
The BSE Mid-Cap index fell 0.62% and the BSE Small-Cap index fell 0.40%. The BSE Small-Cap index outperformed the Sensex.
The BSE Consumer Durables index (up 0.52%), BSE Bankex (up 0.32%), BSE IT index (up 0.19%), BSE Healthcare index (up 0.05%), BSE Capital Goods index (down 0.45%), BSE FMCG index (down 0.46%), BSE PSU index (down 0.61%), outperformed the Sensex.
The BSE Power index (down 0.67%), BSE Auto index (down 0.72%), BSE Metal index (down 1.37%), BSE Oil & Gas index (down 2.01%), and BSE Realty index (down 2.12%), underperformed the Sensex.
The market breadth, indicating the overall health of the market was weak. The breadth was positive earlier in the day. On BSE, 1060 shares advanced as compared with 1760 that declined. A total of 85 shares remained unchanged.
BSE clocked turnover of Rs 3982 crore, lower than Rs 4513.85 crore on Wednesday, 17 February 2010.
From the 30 share Sensex pack, 21 shares fell while the rest rose.
Index heavyweight Reliance Industries (RIL) fell 3.35% on profit taking. The government has reportedly demanded another $2.7 million from Reliance Industries towards royalty and profit petroleum payments on gas produced from the Krishna-Godavari (KG) D6 for the six-month period from April-September 2009, arguing that the company did not take into account the marketing margin it levies while calculating the dues.
Meanwhile, Reliance Industries may reportedly be forced to raise its offer for LyondellBasell or abandon its bid all together after the target settled a dispute with creditors that paved the way for an exit from bankruptcy. Lyondell said on Tuesday it would continue with its reorganisation plan aimed at exiting bankruptcy.
Metal stocks fell after LMEX, a gauge of six metals traded on the London Metal Exchange, fell 0.435% on Wednesday, 17 February 2010. NMDC, Sterlite Industries, Jindal Steel & Power, National Aluminum Company, Sesa Goa and Hindalco Industries fell by between 0.46% to 3.88%.
Tata Steel, the world's No. 8 steelmaker fell 1.29% on profit taking after gaining 6.37% on Wednesday. The firm on Tuesday posted its first consolidated quarterly profit in four quarters and said reviving global demand would further boost earnings in the three months to March 2010. After trading hours on Tuesday, Tata Steel said its consolidated net profit for the December 2009 quarter, which includes its UK unit Corus, fell 42%, although higher prices and increased volumes led to a rise in its operating profit margins.
Tata Steel said its consolidated net profit in the October-December period fell to Rs 473 crore from Rs 814 crore last year. Revenue fell 20% to Rs 26,069 crore. The stock rose 2.23% on Tuesday ahead of the result.
Hindalco Industries declined on profit taking after recent strong gains on reports the company hopes to complete raising Rs 4900-crore of debt in the next two weeks to achieve financial closure for Utkal Alumina Refinery, a 15 lakh tonne per annum project in Orissa.
Rate sensitive auto fell as government is widely expected to raise excise duties on automobiles in Union Budget 2010-2011 next week. India's top small car manufacturer by sales Maruti Suzuki India fell 1.40% after gaining for last two trading sessions. As per reports the company expects a 20% growth in sales and hopes to double its exports to around 1.6 lakh units this fiscal ended March 2010. India's biggest tractor maker by sales Mahindra & Mahindra (M&M) fell 1.38% after gaining for the last four trading sesions.
India's largest commercial vehicle maker by sales Tata Motors fell 0.22%. Tata Motors on Tuesday said it will hike commercial vehicle prices by up to 2% on account of new emission norms. The company also announced plans of bidding for a Rs 350-crore defense contract to supply light bullet-proof vehicles.
The company said on Monday its global vehicle sales for January nearly doubled to 85,714 units from a year earlier. The sales include UK-based luxury brands Jaguar and Land Rover, whose sales nearly trebled in the month to 16,269 units from a year ago, the company said in a statement. It had earlier said domestic sales, including trucks, buses and cars, jumped an annual 77 % in January.
A hike in excise duty will raise the cost of owning new vehicles. Coupled with the recent price hikes across segments, and the price increases likely in April 2010 on account of the change in emission norms, these potential price increases on excise duty increase may dampen demand.
On the flip side, bus makers Ashok Leyland (down 1.87%) and Tata Motors (down 0.22%) may benefit in case of further allocation of government expenditure towards the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in the Union Budget 2010-11. Bus demand has been boosted this year by an order for 15,000 buses under JNNURM
Rate sensitive realty shares on expectations of rate hike by the central bank to tame surge in inflation. Indiabulls Real Estate, Sobha Developers, Akruti City, Orbit Corporation, Ansal Properties and Infrastructure and DLF fell by between 0.62% to 5.66%.
Unitech fell 4.63% extending losses for the straight second day. Recently Telenor bought a further 7.15% stake in its telecom joint venture Unitech Wireless by pumping in additional Rs 2022 crore of fresh equity.
Unitech and DLF would be the chief beneficiaries if the government providers thrust to affordable housing projects in the Union Budget 2010-11 next week.
Sugar stocks declined after prices of sugar futures in New York, a global benchmark, fell to an eight-week low on Wednesday, 17 February 2010. Shree Renuka Sugar, Balrampur Chini Mills, Simbhaoli Sugars Mills, Triveni Engineering & Industries, EID Parry (India) and DCM Shriram Industries fell by between 0.93% to 4.59%. Sugar futures slumped on Wednesday on concerns over a lack of nearby physical demand. Raw-sugar for May 2010 delivery declined 4.5% to 25.57 cents per pound on ICE Futures US yesterday. Earlier, the contract touched 25.46 cents, the lowest level since 22 December 2009.
Bharat Petroleum Corporation jumped 4.69% after the company said its unit discovered gas in Mozambique.
Prajay Engineers Syndicate jumped 5%, after the company's board approved raising upto $150 million through various modes.
Gee Kay Finance & Leasing Company topped the volume chart on the BSE with 2.18 crore shares changing hands on the counter. Cals Refineries (1.42 crore shares), Unitech (95.51 lakh shares), Shree Ashtavinayak Cine Vision (89.95 lakh shares) and Suzlon Energy (75.96 lakh shares), were the other volume toppers on the BSE.
Gee Kay Finance & Leasing Company reported a highest turnover of Rs 134.31 crore on the BSE. Reliance Industries (Rs 115.11 crore), Axis Bank (Rs 103.84 crore), Tata Steel (Rs 75.70 crore) and Unitech (Rs 68.84 crore), were the other turnover toppers on the BSE.
SENSEX, NIFTY ABOVE 20 DMA AFTER 18 SESSIONS
US markets closed higher by half a percent, on the back of upbeat economic data and corporate results. While housing starts rose to their highest level in six months, January industrial production too topped the expectations. Jan Fed meeting minutes, which raised 2010 GDP growth forecast, also boosted the Sentiment. Dollar strengthened and so did commodities, especially oil, which is a rare instance.
Our markets put up a good show in yesterday’s trade by rising more than a percent for the second consecutive day. More importantly, this came on the back of higher volume of more than 1 lakh crore. FIIs bought index futures worth Rs. 805 cr. The cash provisional figure stood at positive Rs. 520 cr for FIIs and Rs. 197 cr. for DIIs. Talking about charts, Sensex as well as Nifty closed above their respective 20 day simple moving averages after 18 trading sessions. A second consecutive close above the average will give more credence to the current upward move. 4951, the previous top, remains the resistance while on the downside immediate support is placed around 4845.
Grey Market Premiums - Feb 18 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) |
| Aqua Logistics | 220 | 3.50 to 4 | -- |
| Thangamayil Jewellery | 75 | 2 to 3 | -- |
| D. B. Realty | 468 | 7 to 8 | -- |
| Emmbi Polyarns | 45 | 1.50 to 2 | -- |
| NTPC (FPO) | 201 | 2 to 2.50 | -- |
| ARSS Infrastructure Projects | 450 | 138 to 140 | -- |
| Hathway Cable & Data Comm. | 240.00 | 3 to 5 | -- |
| Texmo Pipes | 85 to 90 | 8.50 to 9 | 1950 to 2000 |
| Man Infraconst. | 243 to 252 | 68 to 70 | 1800 to 1950 |
| REC (FPO) | 203.00 | -- | -- |
Sensex may open flat
Headlines for the day
Fuel price rise likely after budget, says finance ministry - Business Standard
India-made telecom gear will not need security okay - Business Line
REC FPO at Rs203 per share - DNA
Asian Hotels to split into 3 entities - Business Standard
United Bank fixes IPO price band at Rs60-66 - Business Line
Events for the day
Major corporate action:
Ex-date for interim dividend of AIA Engineering, CHL and Om Metals Infraprojects Ltd
Ex-date for final dividend of Ambuja Cements.
Ex-date for stock-split of Associated Stone Industries from Rs10/- to Rs5/-.
Man Infraconstruction Ltd IPO opens today
Weekly Inflation to be out today
Results today: Castrol India
Pre-market report
Global signals
The European stocks closed higher on thirds straight session on Wednesday on the back of strong results of BNP Paribas & ING. FTSE 100 closed 0.62% higher at 5276.74.
On Wednesday, US markets closed higher on the back of better-than-expected corporate results and upbeat economic data. Dow Jones closed higher by 0.39% at 10309.24
In today's trade, all the Asian indices are trading marginally lower. Index of China & Taiwan is closed today. At the time of writing of this report SGX Nifty trades 2 points lower.
Indian markets
Indian markets may open flat owing to mixed signals that are coming from the global markets. However, it is expected to remain volatile ahead of weekly inflation that will be declared later on the day.
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 4900. While the Sensex is likely to get support at 15900 and may face resistance at 16700.
Indian ADR's
Among the Indian ADRs trading on the US bourses, Tata Motor surge the most with gains of 2.45%, while Wipro fell the most with loss of 0.47%.
Commodity cues
In the commodity space, wherein the Crude oil prices recorded marginal loss, with the Nymex light crude oil for March series down by $0.30 to settle at $77.03 a barrel.
In the metals space, Comex Gold for April series rose by $0.20 to settle at $1120.00 to a troy ounce.
In the metals space, Comex Silver for March series down by $0.08 to settle at $16.07 to a troy ounce.
Daily trend of FII/MF investment in equities
On February 17, 2010, FIIs were the net buyers of the Indian Stocks in the tune of Rs257.00 crore (with the gross purchase of Rs1181.30 crore and gross sales of Rs924.30 crore).
While the Domestic mutual funds, on February 16, 2010, were the net sellers of the stocks in the tune of Rs59.00 crore (with gross purchase of Rs621.20 crore and gross sales of Rs680.20 crore).
Copper rises on back of economic data
Copper prices end mixed at Comex and LME
Strong economic data pushed copper prices higher on Wednesday, 17 February 2010. Prices rose as a stronger than expected housing report and industrial production data hit the wires at Wall Street today.
At USA, copper futures for March delivery ended higher by 1.95 cents (0.6%) at $3.259 a pound. Last week, copper gained 8.4%. This year, till date, copper is lower by 5%. Copper ended FY 2009 higher by 140%.
At LME, copper for delivery in three months ended marginally lower by $14 (0.2%) at $7,130. 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 report scheduled for the day, the Labor Department in US reported on Wednesday, 17 February 2010 that the prices of goods imported into the United States jumped 1.4% in January, the sixth straight increase. The increase was led by higher prices for oil and gas. Also, The Federal Reserve in US reported on Wednesday that industrial production registered a 0.9% increase in January 2010, the seventh straight monthly gain. For the past year, industrial production has also risen by 0.9%. The report showed that manufacturing output had the sharpest increase since August, but all major subcomponents of production showed improvement.
Separately, the Commerce Department in US reported on Wednesday, 17 February 2010 that housing starts in US rose 2.8% to a seasonally adjusted annual rate of 591,000, the highest level since July. Housing starts for December were revised higher. In December, starts were revised to an annual rate of 575,000, up from 557,000 previously.
In the currency market on Wednesday, the dollar index, which weighs the strength of dollar against the basket of six other currencies rose by almost 1%.
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 1.4 (0.42%) at Rs 328.7/Kg. Prices rose to a high of Rs 331.3/Kg and fell to a low of Rs 325.7/Kg during the day's trading.
Among other metals traded in the LME on Wednesday, lead ended 1% higher at $2,320 a ton and zinc ended unchanged at $2,325 a ton. Nickel ended 1.2% lower to end at $19,975. Aluminum ended 0.3% lower at $2,115 a ton.
Market may remain volatile; inflation data eyed
The market may remain volatile as traders roll over positions from the near-month February 2010 derivatives contracts to March 2010 series ahead of the expiry of the near-month February 2010 contracts on Thursday, 25 February 2010. Asian stock were mixed today, 18 February 2010. US stocks closed higher on Wednesday, 17 February 2010 on positive economic data. Closer home, the government will today unveil data on some wholesale price indices for the year through 6 February 2010 viz. the food price index, the primary articles index and the fuel price index.
Asian stocks were trading mixed on Thursday, 18 February 2010. The key benchmark indices in Indonesia, Singapore and South Korea fell by between 0.15% to 0.47%. But, the key benchmark indices in Japan and Hong Kong rose by between 0.03% to 0.15%.
Wall Street ended in positive zone after a choppy session on Wednesday, 17 February 2010. Positive economic data supported gains. US housing starts rose in January 2010. The Dow Jones Industrial average gained 40.43 points, or 0.39%, to 10,309.24. The Standard & Poor's 500 Index added 4.64 points, or 0.42%, to 1,099.51. The Nasdaq Composite Index rose 12.10 points, or 0.55%, to 2,226.29.
The Federal Reserve raised its 2010 US GDP forecast to 3.2% from 3%. Despite the improved forecast, officials continue to believe that economic conditions warrant exceptionally low interest rates. Officials also worry about the impact of the persistently high unemployment.
The head of the International Monetary Fund Dominique Strauss-Kahn has urged individual countries to act fast and work together on financial regulatory reform, if the problem of preventing another crisis is to be tackled efficiently.
Closer home, farm minister Sharad Pawar said on Wednesday that high food prices have started to ease and will dip further next month. But Finance Minister Pranab Mukherjee is still worried about inflation amid signs that the headline number may hit 10% by March. Despite a string of government efforts to ease concerns, rising prices are posing a big challenge for the Congress-led government, particularly high food prices, and they may prompt the central bank to raise interest rates even before April. Pawar said prices would start coming down in the next seven to 10 days. Food prices rose an annual 17.4% in January 2010, easing slightly from a rise of 19.2% in December.
But, the headline inflation accelerated to its fastest pace in 14 months in January 2010, rising an annual 8.56%, above the central bank's revised end-March inflation forecast of 8.5%. On Tuesday, India's chief statistician Pronab Sen said that headline inflation could top 10% by the end of March. A government panel has advised eliminating price controls for gasoline and diesel and an income-linked rise in kerosene and cooking gas prices. The RBI is widely expected to raise borrowing rates at its April review after surprising markets with a bigger-than-expected rise in banks' cash reserve requirements in January.
Pranab Mukherjee also said economic growth in the fiscal year 2010/11 (April-March) could top 8%, following a growth at around 7.5% in the current fiscal year ending March. The government officials have forecast the economic growth in the current year in the range of 7-8%.
The next major trigger for the stock market is the Union Budget 2010-2011 on 26 February 2010. Among the key issues, analysts and economists expect the Finance Minister to provide a road map for the introduction of the key direct and indirect tax reforms viz. the direct tax code (DTC) and the Goods & Services Tax (GST) in the Budget. The GST will enable the Indian corporate sector to get much-needed relief from a multiplicity of state and Central taxes. However, several critical issues need to be resolved before it can be put in place. The Finance Minister must utilize this opportunity to effect a smooth transition to this new system.
The hope of direct tax reform has risen with the release of the draft Direct Tax Code by the government in calendar 2009. The Direct Taxes Code is supposed to replace the Income Tax Act by consolidating and amending income tax provisions for all categories of people and institutions. The DTC proposes doing away with tax exemptions and bringing under the tax purview a number of entities including trusts that pay no tax at the moment. The thrust of the new code is to promote efficiency and equity by eliminating distortions in the tax structure, introducing moderate levels of taxation and expanding the tax base.
Meanwhile, the government may increase excise duties as a first step towards a gradual winding down of fiscal stimulus measures. It may also raise the service tax rate to 12% from 10%. It may be recalled that the government had slashed the Central Value Added Tax (Cenvat) rate for excise duty from 14% to 8% in two rounds starting in December 2008. It had also cut service tax by 2 percentage points. These reductions were effected in order to provide a stimulus to domestic industry. Since the overall prospects for growth are much brighter today, the finance minister may withdraw a part of the stimulus in order to boost tax revenue.
The Finance Minster may project a lower fiscal deficit for 2010-11 based on higher revenue projections due to economic rebound. It remains to be seen if there are structural reforms to reduce the subsidy burden such as decontrol of petrol and diesel prices as recommended by the Kirit Parikh committee recently.
It also remains to be seen if there is any progress on financial sector reforms. The pending financial sector reforms include raising the foreign direct investment (FDI) cap in private sector insurance companies from 26% to 49% - a Bill for which is pending in Parliament.
As far as government expenditure is concerned, the thrust areas could be agriculture, water resources, power, roads & other infrastructure projects and social sector schemes.
Meanwhile, the government has priced the follow-on public offer of Rural Electrification Corporation (REC) at Rs 203 per share, 7.5% lower than the prevailing market price. An empowered group of ministers met on Wednesday to finalise the floor price of the offer that opens for subscription on Friday 19 February 2010. The issue, which will be open between 19-23 February 2010 , will see the sale of 12.87 crore equity shares and an offer for sale of 4.29 crore government owned shares. Like in the case of NTPC, the issue will take the French auction route, but will give flexibility to bidders to scale down their bid quote. REC will reserve 50% the shares on offer for institutional bidders, while retail investors will get 35%.
The key benchmark indices rose on Wednesday, 17 February 2010 for the second straight day tracking firm global stocks. The BSE 30-share Sensex rose 202.23 points or 1.25% to 16,428.91 on that day.
As per provisional figures on NSE, foreign funds bought shares worth Rs 520.22 crore and domestic funds bought shares worth Rs 197.14 crore on Wednesday.
Tax Saving - Planning Options for Employees
EPF and PPF
Returns: 8.5% (EPF) and 8 per cent (PPF) per annum
Maximum deduction: Rs 1 lakh for EPF; Rs 70,000 for PPF
Income: Tax-free
It's compulsory and it's safe. However, in March, the Employee Provident Fund's (EPF) chief importance is that it automatically reduces the amount you must invest to exhaust the Rs 1 lakh limit. Jokes apart, the EPF has several advantages for taxpayers. To begin with, it offers a steady return of 8.5 per cent. Secondly, you cannot withdraw the money until you retire or change your job. This means you are exploiting the power of compounding to the fullest over your career span.
The best part is that the interest and the withdrawals are tax-free, a benefit available only in a couple of other products.
All these features make the EPF ideal for investing for a retirement corpus. However, if you really need the money, the authorities have the discretion of allowing you one withdrawal during your career even if you haven't changed your job or have not retired. For this, you must submit proof of expense for which the withdrawn amount will be used. Typically, a trans-Europe trip does not qualify as adequate reason for dipping into the EPF. If these features seem attractive, you can increase the contribution to the EPF from the mandatory 12 per cent to 25 per cent of your basic salary.
The returns from the Public Provident Fund (PPF) are slightly lower at 8 per cent per annum, but the interest and withdrawals are tax-free. The advantage over the EPF is greater flexibility of withdrawals. The maturity period of the PPF is 15 years. However, you can dip into the fund from the seventh year onwards. The maximum limit of withdrawal is 50 per cent of the account's balance as in the previous year or in the previous three years, whichever is lower. The cut-off date for calculating the balance is March 31, the last day of the financial year.
In case you want the money before the seventh year, you can take a loan from the account up to 25 per cent of the balance in your account in the third year. The loan must be repaid in a maximum of 36 EMIs. The interest on the loan works out to 12 per cent. As the interest on the money is not redirected to the PPF, it may be good idea to avoid taking a loan.
Five-year FDs and NSCs
Returns: 7-8%
Maximum deduction: Rs 1 lakh
Income: Fully taxable
The National Savings Certificates are currently on a par with the PPF in terms of pre-tax returns. But they lose out to the PPF and EPF because the returns are taxable, thus reducing the post-tax yield. Needless to say, they are equally safe and have the advantage of a shorter lock-in period of six years.
The tax treatment of NSC income makes all the difference for taxpayers who have an income that falls within the 30 per cent tax slab. However, if you are a retiree or have an annual income lower than Rs 3 lakh, the tax rate is marginal (only 10 per cent, plus 3 per cent cess). Five-year fixed deposits also have a short lock-in period and offer almost the same returns. The difference is that the interest rates of FDs are more variable and the deposits in private banks are not as safe.
Senior citizens' savings scheme
Returns: 9 per cent per annum
Maximum deduction: Rs 1 lakh
Income: Fully taxable
Whether or not you are looking forward to a retired life, there is one sure reason to celebrate. It is called the Senior Citizens' Savings Scheme, which offers a higher rate of returns 9 per cent than most bank deposits. Though the income is taxable, it is unlikely that you will pay tax because the exemption limit for senior citizens is Rs 2.4 lakh per year.
The twist is that though you are eligible for earning 9 per cent interest after the age of 60, the tax exemption limit comes into effect only after you complete 65 years. Never mind this minor problem. The impact of the extra tax paid in five years will be minimal compared with the long-term benefits of this scheme. So do not ignore this option if you are planning a carefree retired life.
Equity-linked saving schemes
Returns: Market-linked
Maximum deduction: Rs 1 lakh
Income: Tax-free
They have been in the recovery mode since 2009, giving returns of about 76.1 per cent last year. This bounceback from the lows of 2008 (the ELSS funds lost 55.5 per cent on an average) proves that long-term investors cannot overlook the ELSS for saving tax. The returns offered by these funds are unmatched by any other tax-saving instrument. Of course, they have the same risk profile as other equity funds. However, you can play your cards right by choosing funds that have been consistent performers and by staying invested for long periods.
To further hedge your risk, you can invest via SIPs that give you the benefit of averaging out costs. This automatically makes tax planning a year-long affair, as it ought to be. You also have the option to choose dividend payouts for periodic payments. This doesn't affect the taxability of income as both dividends and capital gains at the end of the three-year lock-in period are tax-exempt.
Unit-linked insurance plans
Returns: Market-linked
Maximum deduction: Rs 1 lakh
Income: Tax-free
Last year, Ulips got a major facelift. The insurance regulator capped the difference between the gross yield and the net yield earned by a Ulip. The ceiling is 3 per cent for Ulips with a tenure of less than 10 years and 2.25 per cent for policies with longer tenures. However, mortality charges have been kept out of this calculation. The rule became effective from 1 January 2010.
Now that the steep charges are gone, you have hardly any reason to ignore this instrument that combines equity exposure, life cover and tax savings. In fact, if the Swarup Committee's recommendations are accepted, all the upfront commissions of Ulips will be phased out by 2011. Therefore, investing in this product will become more profitable. Understanding the features of this financial instrument is important to optimise its benefits. For instance, in addition to saving tax, Ulips can also act as an effective allocation tool. This is because Ulips allow investors to change the equity-to-debt ratio without any penalty for a fixed number of switches every year. Even if you are not market savvy and are unable to take the decision on your own, there are Ulips that change the allocation according to your life stage.
However, if you are looking at short-term returns, stay way from Ulips. This is because they may not be able to recover the upfront charges unless you stay invested for at least 10-12 years. Do not be swayed by agents who claim that you only have to pay premiums for a minimum period of three or five years. In this way, your corpus is not likely to grow enough and will only be able to pay the charges for the life cover.
Life insurance policies
Returns: 5-6%
Maximum deduction: Rs 1 lakh
Income: Tax-free
There may not be many advantages to the expensive endowment or money-back policies that your friend had recommended a few years ago, but there is one silver lining. The premium of the policy is covered by Section 80C of the Income Tax Act and is exempt from tax. This is not to say that you must buy such a policy now. If you are inadequately insured, opt for pure term plans, which are significantly cheaper than traditional policies. In fact, the premiums paid for all insurance policies that cover you, your spouse and dependent children are exempt from tax. But remember that experts are against buying insurance for saving tax alone. The latter should be an added advantage.
Pension plans
Returns: Market-linked
Maximum deduction: Rs 1 lakh
Income: Pension income taxable
It's a must-have for all investors. If your employer does not provide one, buy a pension policy that ensures a steady income after retirement. What can be better than earning tax benefits on the investment as well?
There are three types of pension plans to choose from. The first is the unit-linked pension plan. It offers greater control over your retirement corpus by allowing you to choose the mix of equities and debt according to your risk appetite. A unit-linked pension plan is not as costly as a Ulip because it does not offer life insurance.
However, keep in mind that on maturity, only 33 per cent of the corpus can be withdrawn tax-free. If you do not get gratuity, up to 50 per cent of the pension corpus can be commuted. You must use the balance to buy an annuity from an insurance company that will give a monthly pension.
This pension is fully taxable.
The second type of pension plan is offered as a mutual fund. In most of these funds, the money cannot be withdrawn before the investor turns 58. Even if early withdrawals are allowed, you have to pay a penalty. For instance, the Templeton India Pension Plan charges a hefty 3 per cent exit load on amounts withdrawn before the vesting age of 58.
The third option is the New Pension Scheme (NPS) launched with much fanfare in 2009. However, it is yet to attract investors in hordes. To know more about why the scheme has been a non-starter, read our story 'All you Need to Know About Pension' on our Website, www.moneytoday.in. Sign up only if you are convinced that the NPS has the potential to take care of your pension needs. The contributions fall within the Section 80C ambit.
Home loan EMI
Maximum deduction: Rs 1 lakh
For the past few months, the hefty home loan EMI had been one of the most important reasons employees feared the job axe. Now, the same EMI is cause to rejoice. The cumulative principal of your EMIs is eligible for a Section 80C deduction. This is usually a large amount and, along with the Provident Fund, should take care of most of your Rs 1 lakh limit. If you also factor in the deduction available under Section 24 on the interest paid, the effective loan rate comes down significantly.
Another way to increase the benefit is to take a joint loan with a sibling, spouse or parent. This way, both coowners of the property can claim individual tax benefits on the home loan. A word of caution: do not let tax saving inspire you to extend your loan tenure. It is equivalent to spending more to get a discount. The shorter the tenure of a mortgage, the better it is.
Tuition fees
Maximum deduction: Rs 1 lakh
The ever-increasing school fees of your children could burn a hole in your wallet. There is some respite because the tuition fee of up to two children is taxdeductible. Note that only the tuition fee is included. Other myriad charges in various forms, such as the building development fee, bus fee, etc, are not eligible for deduction. Another rider is that the fee must be paid to a recognised educational institution in India. This means that playschools, foreign colleges and private coaching classes do not qualify. Also, the fee must be paid for the taxpayer's children, not siblings, nephews, nieces or grandchildren.
The benefit cannot be availed of by both the parents. If there's one child, only one of the parents can claim tax benefits on the school tuition fee. Otherwise, each parent can claim tax benefit for different children. Even so, the tax benefit is helpful, especially for those who can't save enough to cut taxes.
via Indiainfoline/Money Today
Daily News Roundup - Feb 18 2010
RIL may be forced to hike its bid for LyondellBasell as creditors of the bankrupt US Company have reached an agreement with the current management. (ET)
ONGC, IOC and Oil India will initially invest US$2.25bn in the recently bagged Venezuela project. (ET)
NMDC and Arcelor Mittal are exploring an opportunity for a joint mining project in Africa. (FE)
REC has fixed a floor price of Rs203 for its forthcoming FPO. (ET)
AXIS Bank has sought government permission to set-up a subsidiary in UK. (ET)
Government has promised its support to Bharti Airtel in its attempt to acquire the African operation of Kuwaits Zain Telecom. (ET)
HDIL has received an approval from government to develop a slum rehabilitation project in Mumbai. (ET)
BHEL has signed a MoU to form 50:50 JV with Japan’s Toshiba for manufacturing equipment for power T&D business. (ET)
Spice Mobile to buy 65% stake in a new JV that would own smart phone brand Blueberry and two manufacturing units of Malaysia CSL mobile. (ET)
REpower Systems, majority owned by Suzlon, has signed an agreement with French wind and solar power developer EOLE-RES SA, for the supply of 26 turbines with a total capacity of 52 MW. (BL)
Tata Steel expects to commission the Rs24bn Dhamra Port in Orissa by July. (BL)
NMDC is set to revise its pricing policy from April 1. (BS)
NMDC is looking at clocking Rs300bn turnover by 2014-15 when its various projects worth Rs260bn would be operational. (BS)
Ashok Leyland is set to enter into construction equipments business in JV with John Deere. (ET)
BHEL to hire 8,000 people in the next two years to meet growing domestic demand. (ET)
Abbott labs has announced an open offer to acquire 20% of Solvey Pharma India at Rs3,054 per share. (ET)
Union Bank of India will price its public issue in a range of Rs60-66 per share. (ET)
JK Lakshmi Cement to raise Rs6bn via ECBs and rupee term loans in the next quarter to finance its Greenfield projects. (ET)
Mahindra Satyam is looking to hire around 5,000 people, including freshers and experienced professionals, by the end of next month. (BS)
Havells India plans to produce ceramic metal halide (CMH) lamps which are designed for indoor and outdoor lighting applications. (BS)
Novartis is looking to buy out the remaining stake in US-based eye care group Alcon by the end of this year. (BS)
Areva T&D India has been awarded a Rs1.2bn contract for electrical Balance of Plant (eBOP) by L&T Power for state utility, Madhya Pradesh Power Generating Company Ltd. (BS)
L&T General Insurance is ready to launch its operations in the next three-five months. (BS)
SpiceJet will start flights on international routes by this year if it receives all the requisite approvals. (BL)
Chettainad Cement is planning to raise its capacity to 25mtpa by 2020 from 8.5mtpa currently. (ET)
Government to ban FDI in Tobacco sector. (ET)
Prime minister’s economic advisory council has pitched for a single Cenvat rate, which would be higher than the current 8%. (ET)
India has retained its top slot in gold consumption. (ET)
Tax heavens pose a threat to security because of their complex and secret laws, says the finance ministry. (ET)
Government is considering selling part of its stake in PSU banks to LIC and GIC. (FE)
Banks want the deadline for the implementation of base rate to be extended by three months. (FE)
The government is confident that food prices will start easing from April when the rabi harvest hits the market. (BS)
The government has removed cap on the number of players who can participate in financial bidding for port expansion projects under public private partnership (PPP) to minimise litigations and get better returns. (BS)
According to the Finance Minister, India’s economy is poised to grow by 7.5% this fiscal and will top 8.5% in the next on the back of a strong industrial recovery, said. (BS)
The Designated Authority in the Commerce Ministry has recommended a modified definitive anti-dumping duty on nylon filament yarn mainly from Malaysia. (BL)
Avoid the risk
What you risk is what you value.
Though the world has weathered the financial storm well so far, one cannot convincingly say that we are out of the woods. For every 2-3 good news there is one bad news. China is overheated while Europe is facing certain debt issues. The US is growing but the quality of recovery is questionable. Unemployment is still pretty high in the matured economies.
For India, the big issue is inflation and its broader economic fallout. Interest rates are set to head north, slowly but surely. The Government has limited elbow room as fiscal deficit is not sustainable. With the economy doing well, a partial rollback of fiscal stimulus is definitely on the cards.
We expect a subdued opening owing to mixed global cues. Asian markets are down mostly, barring Japan. Chinese markets will resume trading next week. US stocks closed higher and European stocks rose for a third straight session. We expect a choppy session with a slightly positive bias. Budget will be a crucial event as will be the monsoon.
The NSE Nifty may find immediate support at 4895 and could face resistance at 4950. Beyond 5000, it will meet resistance at 5018 and later at 5045. In case of a major fall, 4700 should act as a good support. We see a near-term trading range of 4800 and 5000.
FIIs were net buyers in the cash segment on Wednesday at Rs5.2bn on a provisional basis while the local funds were net buyers of Rs1.97bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers of Rs7.77bn. On Tuesday, FIIs were net buyers of Rs2.57bn in the cash segment, while Mutual Funds were net sellers at Rs590mn, according to SEBI web site.
US stocks closed up on Wednesday, as investors considered a better-than-expected housing report, a mixed forecast from the Federal Reserve and some upbeat company news. The dollar firmed up, hitting dollar-traded oil, gold prices and stocks. Treasury prices plunged.
The Dow Jones Industrial Average rose 40 points, or 0.4%, to end at 10,309.24. The S&P 500 index rose 5 points, or 0.5%, to close at 1,099.51. The Nasdaq Composite index edged up 12 points, or 0.6%, to 2,226.29.
The dollar rose for a second day against the euro as signs that the US economy is gaining momentum fueled speculation that the Fed is moving closer to withdrawing stimulus measures. The dollar gained versus the euro and the yen, pressuring dollar-traded commodity prices.
US light crude oil for March delivery rose 32 cents to settle at $77.33 a barrel on the New York Mercantile Exchange.
COMEX gold for April delivery rose 30 cents per ounce to settle at $1,120.10.
Treasury prices tumbled, raising the yield on the 10-year note to 3.74% from 3.66% late on Tuesday.
US stocks clung to modest gains throughout the session as investors weighed the day's news against the headwinds that have punished stocks year-to-date.
Stocks rallied on Tuesday after Merck and Barclays released better-than-expected results and commodity prices rose. The Dow gained 1.7%, or 170 points, for its biggest one-day point gain since Nov. 9.
Tuesday's advance was an exception, and stocks have had a rough start to the year, with the Dow, Nasdaq and S&P 500 posting declines for four of the last five weeks. Concerns about the strength of any recovery have continued to worry investors.
While quarterly profit reports have been good, the economic news has been mixed. The economic recovery has been good, its not going to be as strong as had been anticipated.
In 2009, the Dow gained 18.8%, the S&P 500 rose 23.4% and the Nasdaq gained 44%. But the gains were even bigger off the multi-year lows of last March, with the Dow rising 59%, the S&P 500 rising 65% and the Nasdaq rising 79%.
The Fed released the minutes from its last policy meeting in the afternoon, as well as its revised economic forecast. Chairman Ben Bernanke and the other officials said unemployment should decline only modestly over the next few years, keeping the unemployment rate above the level that is typical during a recovery.
The US bankers also gave a slight boost to forecasts for economic growth this year, lifting the target to growth of between 2.8% and 3.5% in 2010 versus November forecasts for growth between 2.5% and 3.5%.
Housing starts rose 2.8% in January to a 591,000 annual unit rate, according to a National Association of Home Builders report released Wednesday morning. Economists thought it would rise to a 580,000 unit annual rate from a 575,000 unit annual rate in the previous month.
Building permits, a measure of builder confidence, fell 4.9% to an annual unit rate of 621,000 in January, versus forecasts for a drop to a 620,000 unit annual rate. Permits stood at a 653,000 unit annual rate in the prior month.
Industrial production rose 0.9% in January after rising 0.7% in the previous month, the government reported Wednesday. Economists thought it would rise 0.7%. Capacity utilization rose to 72.6%, as expected, from 71.9% in December.
Deere & Co. reported higher quarterly earnings that topped estimates on lower revenue that also topped estimates. The heavy equipment maker said that cost-cutting and the benefit of better currency rates helped offset the weak economic environment. Deere also boosted its 2010 sales forecast.
Walgreen said that it will buy rival drugstore Duane Reade in a deal valued at $1.08 billion including debt.
Toyota said that it plans to install a new brake override system in its cars, and that it will tighten controls on safety, in the aftermath of its recall of millions of autos due to faulty brakes. However, President Akio Toyoda said he won't testify before Congress at the hearing later this month. Shares of Toyota fell nearly 3%.
After the close, Hewlett-Packard reported higher quarterly earnings and revenue that topped expectations. Shares gained 1% in extended-hours trading.
Thursday brings the weekly jobless claims report from the Labor Department, the index of leading economic indicators (LEI) from the Conference Board, the January Producer Price Index (PPI) and the Philadelphia Fed index.
In addition, Wal-Mart Stores reports results before the start of trading. The retailer is expected to have earned $1.12 per share versus $1.03 a year earlier.
European shares advanced for the third straight session, boosted by strong earnings data from the financial sector. After rising 1.4% over the first two sessions of the week, the pan-European Dow Jones Stoxx 600 index added another 1.4% to close at 247.69. That move pared year-to-date losses to 2.4%.
The UK's FTSE 100 index rose 0.6% to close at 5,276.64, the German DAX index finished 1% higher at 5,648.34 and the French CAC-40 index advanced 1.5% to settle at 3,725.21.
Indian markets witnessed smart follow through buying on Wednesday thanks to overnight gains in the US and firm cues from the Asian and the European markets. Benchmark indices extended winning streak to second straight trading session with the NSE Nifty reclaiming 4900 levels.
Nifty has now gained over 120 points in just two days. The decisive up move had the leadership of index heavyweights like Tata Steel, Hindalco, Sterlite Industries and HDFC Bank.
The Metals, Auto and the banking indices were among the top gainers among the BSE sectoral indices. The BSE Mid-Cap and BSE Small-Cap index added over 0.7% each. However, the IT and Realty index were under pressure.
Stocks to be added in the F&O segment were in momentum ahead of the inclusion. NSE announced in its circular that 11 new stocks would be added from February 19, 2010 which is just 5 trading session away from the current series F&O expiry.
Finally, the BSE Sensex advanced 202 points to end at 16,429 it hit an intra-day high of 16,480 and intra-day low of 12,248. While the NSE Nifty gained 58 points to end at 4,914.
Among the 30-components of Sensex, 22 ended in the positive terrain and 8 ended in the red.
Outside the frontline indices, the big gainers in the broader market were Videocon Industries, Godrej Ind, Mundra Port, Aban Offshore and Educomp. On the other hand, losers included IB Real Estate, Bharat Forge, CESC and NMDC.
Shares of Tata Steel surged by over 6% to end at Rs584 after posting a group profit for the first time in four quarters.
The Group posted a profit after Minority Interest and Share of Profit of Associates of Rs47.26bn for the quarter ended December 31, 2009 as compared to Rs81.38bn for the quarter ended December 31, 2008. Total Income decreased from Rs332.34bn for the quarter ended December 31, 2008 to Rs266.11bn for the quarter ended December 31, 2009.
Shares of Bharti Airtel rebounded after days of severe offloading. The stock gained 3% to end at Rs279. According to reports, the company said that the acquisition of Zain Group's African assets would result in a total payout of US$9bn, which includes any loans payable by the operating companies to Zain Group, stated reports. The scrip opened at Rs273 it touched an intra-day high of Rs281 and a low of Rs273 and recorded volumes of over 1.6mn shares on NSE.
Shares of Tata Motors gained 1.5% to end at Rs711 after the company yesterday announced that it was entering the business of combat vehicles manufacturing for the defence sector. The company is also reportedly planning to bid to supply light bullet-proof vehicles to the Indian Army, with a possible order size of Rs3.5bn.
The Auto major also plans to increase prices of its commercial vehicles by 1-2% from April when the new emission norms become effective.
Shares of HDIL was absolutely unchanged to end at Rs314. Media reports stated that the company secured new slum rehabilitation project worth Rs20bn in Mumbai. The scrip opened at Rs316 it touched an intra-day high of Rs322 and a low of Rs311 and recorded volumes of over 7.2mn shares on NSE.
Bank of Baroda reportedly obtained a US$175mn term loan due 2013. The bank had canceled its planned sale of bonds denominated in U.S. dollars this month. Credit Agricole CIB, HSBC Holdings Plc and Standard Chartered Plc arranged the facility, stated reports.
The stock gained 1.1% to end at Rs577, it opened at Rs575 it touched an intra-day high of Rs580 and a low of Rs572 and recorded volumes of over 0.49mn shares on NSE.
Shares of ThinkSoft Solutions were locked at 20% lower circuit yet again. The stock has dropped over 40% in the two das. The scrip opened at Rs390 it touched an intra-day high of Rs390 and a low of Rs317.7 and recorded volumes of over 82,000 shares on NSE.
After surging over 300% from the time of its inception, shares of ThinkSoft Solutions is witnessing heavy selling. The stock had debuted at Rs100 a discount of 20% over the IPO of Rs125 per share.
Shares of Golden Tobacco are locked at 5% upper circuit to end at Rs139.40 after its board approved a plan to develop its north Mumbai property and move its manufacturing facilities to a new location. The scrip opened at Rs136.6 it touched an intra-day high of Rs139 and a low of Rs133.7 and recorded volumes of over 42,000 shares on NSE.
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