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Thursday, February 25, 2010
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Nifty March 2010 futures at premium
Turnover spurts
Nifty March 2010 futures were at 4,869.90, at a premium of 10.15 points over spot closing of 4,859.75. Turnover in NSE's futures & options (F&O) segment spurted to Rs 1,22,098.64 crore from Rs 91,298.01 crore on Wednesday, 24 February 2010.
The near-month February 2010 derivatives contracts expired today, 25 February 2010, ahead of the presentation of the Union Budget tomorrow, 26 February 2010. Rollover in Nifty futures was about 55% from February 2010 series to March 2010 series at the end of Wednesday's trade. Rollover in Mini Nifty futures was about 39.05% and the market wide rollover was about 59%.
Bharat Heavy Electricals March 2010 futures were at premium at 2,373 compared to the spot closing of 2371.15.
Larsen & Toubro March 2010 futures were at discount at 1533.95 compared to the spot closing of 1535.
Suzlon Energy March 2010 futures were near spot price at 68.75 compared to the spot closing of 68.45.
In the cash market, the S&P CNX Nifty rose 1.15 points or 0.02% at 4,859.75.
Asia mired in red as dollar strikes back
Fresh concerns about downgrading of Greece on debt problems impact broad market sentiments
Asian equities slipped today, led by the Japanese and Hong Kong stocks as persistent selling pressures weighed on the global asset markets amid stronger dollar and worries over the Greece fiscal scenario. Fresh concerns about downgrading of Greece on debt problems also impacted market sentiment amid fears the global economic recovery might slow down. Yesterday, the US Commerce Department said sales dropped 11.2% to a 309,000-unit annual rate, the lowest level since record keeping started in January 1963, compared with an upwardly revised 348,000 units in December.
This came in an as a rude shock to the global markets which expected new home sales to increase to a 360,000 unit annual pace. The demand for loans to buy homes also hit a 13-year low last week, fanning fears of renewed weakness in the housing market. The dollar emerged as a direct beneficiary out of this; coming near the nine month highs against the Euro as risk aversion hold ground stubbornly.
The stock market in Japan closed in red, dragged down by exporter and trading companies on stronger yen, as the stronger local currency reduces the export realizations in local currency terms upon realization. The benchmark Nikkei 225 Index fell 96.87 points, or 1.0%, to 10,102, while the broader Topix index of all First Section issues lost 4.28 points, or 0.5%, to 891.
On the economic front, a statement released by the Ministry of Finance revealed that Japanese investors bought net 348.0 billion yen in foreign bonds for the week ended February 20. The statement also noted that the country's residents sold a net 27.9 billion yen in foreign stocks last week. Foreign investors purchased a net 37.2 billion yen in Japanese stocks and net 310.5 billion yen in Japanese bonds during the last week, the statement noted.
The Australian market ended in negative territory amid concerns that global economic recovery might receive a setback following developments in Greece, which might lead to downgrading on mounting debt problems. The benchmark S&P/ASX200 Index slipped 54.40 points, or 1.17% to close at 4,594, while the All-Ordinaries Index ended at 4,615, representing a loss of 51.00 points, or 1.09%.
Positive closing on Wall Street in the previous session on Ben Bernanke's comments failed to enthuse investors who preferred to move to sidelines awaiting further developments in Greece and the awesome strength in the US dollar hurt the risk aversion. The greenback traded around 1.3450, threatening to break the nine-month highs against the Euro.
n the U.S., stocks rose by notable margins on Wednesday,. The major averages all closed firmly in positive territory, offsetting a majority of the week's earlier losses. The Dow gained 91.75 points or 0.9% to end at 10,374, the Nasdaq advanced by 22.46 points or 1% to 2,236 and the S&P 500 rose by 10.64 points or 1% to 1,105.
In other markets, China's Shanghai Composite was up 1.0%, Taiwan shares were down 0.4% and South Korea's Kospi Composite was down 1.0%. Singapore's Straits Times Index was 0.6% lower, Thai shares were up 0.4% and New Zealand's NZX-50 was up 0.5%. India's Sensex trimmed earlier losses after the Finance Ministry's Economic Survey for 2009-2010 predicted that India would bounce back to a high 9% growth in 2011-12 and is on its way to becoming the world's fastest growing economy in four years.
Meanwhile, the latest data showed a strong growth in the infrastructure sector in the month of January 2010. The BSE 30-share Sensex was down 23.90 points or 0.15%, up close to 60 points from the day's low and off close to 100 points from the day's high
Dow Jones Industrial Average futures were 39 points lower in screen trade when last seen. Oil fell below $80 on Thursday, dragged lower by a rise in the dollar as the euro slid on concerns over the outlook for the European economy. WTI crude futures for April were down 42 cents at $79.58 a barrel by after rising $1 on Wednesday.
United Bank of India Subscription Details
| Sr.No. | Category | No.of shares offered/reserved | No. of shares bid for | No. of times of total meant for the category |
| 1 | Qualified Institutional Buyers (QIBs) | 28500000 | 1341847100 | 47.0824 |
| 1(a) | Foreign Institutional Investors (FIIs) | 701370100 | ||
| 1(b) | Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) | 478519100 | ||
| 1(c) | Mutual Funds | 161957900 | ||
| 1(d) | Others | 0 | ||
| 2 | Non Institutional Investors | 4750000 | 185974500 | 39.1525 |
| 2(a) | Corporates | 127182800 | ||
| 2(b) | Individuals (Other than RIIs) | 41695900 | ||
| 2(c) | Others | 17095800 | ||
| 3 | Retail Individual Investors (RIIs) | 14250000 | 139704100 | 9.8038 |
| 3(a) | Cut Off | 126078900 | ||
| 3(b) | Price Bids | 13625200 | ||
| 4 | Employee Reservation | 2500000 | 1325200 | 0.5301 |
| 4(a) | Cut Off | 1218700 | ||
| 4(b) | Price Bids | 106500 |
United Bank of India IPO heavily bid
Issue subscribed nearly 27 times
The initial public offer (IPO) of state-run United Bank of India (UBI) received strong response from investors. The IPO was subscribed nearly 27 times by 15:00 IST on the last day of the issue today, 25 February 2010. The IPO got bids for 134.92 crore shares compared with 5 crore shares on offer. The price band for the IPO is Rs 60 to Rs Rs 66 per share. The bank is offering a discount of 5% to retail investors.
Domestic institutional investors (DIIs) have made a beeline for the UBI IPO. DIIs, excluding mutual funds, put in bids for 9.67 crore shares by the end of the second day of the issue on Wednesday, 24 February 2010. However, there was not a single bid from mutual funds. Foreign institutional investors (FIIs) put in bids for 2.09 crore shares.
The IPO comprises of a net issue of 4.75 crore equity shares of a face value of Rs 10 each to the public, and a reservation of 25 lakh equity shares for subscription by eligible employees.
United Bank of India (UBI) has its presence predominantly in the north and north-east India.
Highlights of Economic Survey 2009-10
* Economy likely to grow around 8.5% (+/-0.25%) in 2010-11 and with full recovery economic growth expected to return to 9% in 2011-12. The broad based recovery gives scope for gradual stimulus roll back.
* The Economic Survey favoured providing further stimulus for the exports sector, arguing that the recovery prospects in global markets are still fragile. Amid the debate on withdrawal of the stimulus, including speculation of a possible across-the-board roll back of cuts in excise duty and service tax, the document suggested further reduction in excise for export oriented industries.
* Gross fiscal deficit pegged at 6.5% of GDP in 2009-10. However, there is need to start fiscal consolidation beginning in April and medium-term fiscal plan should be a commitment and not a statement of intent.
* With interest rates at historic lows in most advanced economies, surge in capital flows from these countries will have to be monitored and checked if in excess. The current situation can be termed as "impossible trinity" dilemma of policy choice between price stability, exchange rate stability and capital mobility.
* Considering the dimensions of the infrastructure deficit in the country, the Economic Survey called for channelising savings for development of core sectors on a large scale.
* With a view to make food subsidy more effective and direct, the government moots direct food subsidy via monthly food coupons to households.
* High double-digit food inflation in 2009-10 major concern, with signs of food inflation spreading to other sectors, as farm & allied sector production falls 0.2% in 2009-10. The situation demands serious policy initiatives for 4% agriculture growth including attracting private investment.
BSE Bulk Deals to Watch - Feb 25 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
25/2/2010 530093 Ace India VISHAKA JALAN B 22079 12.08
25/2/2010 530093 Ace India UMA GOEL B 100000 11.00
25/2/2010 530093 Ace India PK GOYAL B 50000 11.00
25/2/2010 530093 Ace India ANITA GUPTA B 160000 11.00
25/2/2010 530093 Ace India SUSHIL AGGARWAL B 134716 11.00
25/2/2010 530093 Ace India VED PRAKASHNA RULA S 495000 11.08
25/2/2010 517356 ACI Infocom SHREE HARIVANSH SEC PVT LTD B 110000 27.09
25/2/2010 517356 ACI Infocom SRISHARAN SARAOGI B 50000 27.10
25/2/2010 517356 ACI Infocom MESSRS SHREEKANT PHUMBHRA B 100000 27.09
25/2/2010 517356 ACI Infocom JINAY INVESTMENT CO PVT LTD B 50000 26.88
25/2/2010 517356 ACI Infocom JINENDRA FISCAL PVT LTD B 60000 27.10
25/2/2010 517356 ACI Infocom EXIM SCRIPS DEALERS PVT LTD B 135506 27.13
25/2/2010 517356 ACI Infocom POONAM MANESH WADHWANI B 200000 24.87
25/2/2010 517356 ACI Infocom JAYSHREERE VATKARAN MEHTA B 200000 24.75
25/2/2010 517356 ACI Infocom JAYSHREE REVAT KARAN MEHTA S 200000 27.10
25/2/2010 517356 ACI Infocom ALOK GUPTA S 300000 24.84
25/2/2010 517356 ACI Infocom POONAM MANESH WADHWANI S 200000 27.14
25/2/2010 517356 ACI Infocom PARESH GOPANI S 133555 24.78
25/2/2010 517356 ACI Infocom SRISHARAN SARAOGI S 50000 27.10
25/2/2010 523537 APM Inds RAHUL SHARMA B 32634 48.00
25/2/2010 523537 APM Inds RAHUL SHARMA S 32634 48.09
25/2/2010 530187 Atharv Enter NARESH CHAND JAIN B 21046 22.37
25/2/2010 530187 Atharv Enter IQBAL HATIMBHAI SOGIAWALA B 19500 22.00
25/2/2010 530187 Atharv Enter SHASHIKUMAR JHUNJHUNWALA S 20000 22.18
25/2/2010 530187 Atharv Enter NARESH CHAND JAIN S 21046 22.05
25/2/2010 531591 Bampsl Sec PRAKASH CHAND GUPTA B 728560 1.41
25/2/2010 531591 Bampsl Sec SUNIL KUMAR GUPTA B 600000 1.40
25/2/2010 531591 Bampsl Sec ANJU GUPTA B 500000 1.41
25/2/2010 531591 Bampsl Sec GIRRAJ PRASAD GUPTA B 600000 1.42
25/2/2010 531591 Bampsl Sec PRAKASH CHAND GUPTA S 463725 1.37
25/2/2010 531591 Bampsl Sec NAVAL KISHORE GUPTA S 700000 1.42
25/2/2010 531591 Bampsl Sec KAUSHALYA GARG S 929429 1.41
25/2/2010 511607 Birla Shloka ARIHANT SEC & INVESTMENT B 76834 51.95
25/2/2010 511607 Birla Shloka ARISTRO FINANCIAL SERVICES LTD. B 64850 53.38
25/2/2010 511607 Birla Shloka TALISMAN SECUTIRIES PVT LTD B 111199 53.39
25/2/2010 511607 Birla Shloka ARISTRO FINANCIAL SERVICES LTD. S 64850 53.24
25/2/2010 511607 Birla Shloka ARIHANT SEC & INVESTMENT S 76834 53.14
25/2/2010 533161 EMMBI POLY ASSET ALLIANCE SECURITIES PVT. LTD B 101279 29.94
25/2/2010 533161 EMMBI POLY A K G STOCK BROKERS PRIVATE LIMITED B 251398 29.95
25/2/2010 533161 EMMBI POLY A K G SECURITIES AND CONSULTANCY LTD B 124927 30.26
25/2/2010 533161 EMMBI POLY SMART EQUITY BROKERS PRIVATE LIMITED B 124779 30.73
25/2/2010 533161 EMMBI POLY TRANSGLOBAL SECURITIES LTD. B 99421 30.53
25/2/2010 533161 EMMBI POLY SMITA M PATEL B 90000 29.69
25/2/2010 533161 EMMBI POLY GENUINE STOCK BROKERS PVT. LTD. B 603359 30.30
25/2/2010 533161 EMMBI POLY AMBIT SECURITIES BROKING PRIVATE LIMITED B 148868 30.02
25/2/2010 533161 EMMBI POLY VASANTI SHARE BROKAERS LTD B 123657 30.12
25/2/2010 533161 EMMBI POLY MARWADI SHARES AND FINANCE LTD. B 190148 30.19
25/2/2010 533161 EMMBI POLY SANJEEV SINGHAL B 227970 30.13
25/2/2010 533161 EMMBI POLY OPG SECURITIES P LTD B 185924 30.18
25/2/2010 533161 EMMBI POLY RKSV SECURITIES INDIA PRIVATE LIMITED B 121028 30.15
25/2/2010 533161 EMMBI POLY SHYAM SUNDER BIYANI B 102605 30.09
25/2/2010 533161 EMMBI POLY GALA BRUSH LIMITED B 388404 30.99
25/2/2010 533161 EMMBI POLY MEGA YIELD B 104263 31.06
25/2/2010 533161 EMMBI POLY MEGA YIELD S 104263 29.72
25/2/2010 533161 EMMBI POLY SHYAM SUNDER BIYANI S 102605 30.32
25/2/2010 533161 EMMBI POLY GALA BRUSH LIMITED S 388404 29.60
25/2/2010 533161 EMMBI POLY RKSV SECURITIES INDIA PRIVATE LIMITED S 121028 30.38
25/2/2010 533161 EMMBI POLY OPG SECURITIES P LTD S 185924 30.33
25/2/2010 533161 EMMBI POLY SANJEEV SINGHAL S 227970 30.26
25/2/2010 533161 EMMBI POLY MARWADI SHARES AND FINANCE LTD. S 190148 30.48
25/2/2010 533161 EMMBI POLY VASANTI SHARE BROKAERS LTD S 128157 30.12
25/2/2010 533161 EMMBI POLY SMITAM PATEL S 90000 29.49
25/2/2010 533161 EMMBI POLY GENUINE STOCK BROKERS PVT. LTD. S 603359 30.42
25/2/2010 533161 EMMBI POLY TRANSGLOBAL SECURITIES LTD. S 99421 30.58
25/2/2010 533161 EMMBI POLY SMART EQUITY BROKERS PRIVATE LIMITED S 124779 30.73
25/2/2010 533161 EMMBI POLY A K G STOCK BROKERS PRIVATE LIMITED S 251398 30.16
25/2/2010 533161 EMMBI POLY A K G SECURITIES AND CONSULTANCY LTD S 124927 30.34
25/2/2010 533161 EMMBI POLY AMBIT SECURITIES BROKING PRIVATE LIMITED S 148868 29.95
25/2/2010 533161 EMMBI POLY ASSET ALLIANCE SECURITIES PVT. LTD S 101279 30.04
25/2/2010 504351 Empower Inds JASMIN SUSILKUMAR BAJORIYA B 50000 45.35
25/2/2010 504351 Empower Inds HITESH SHASHIKANT JHAVERI S 56201 45.35
25/2/2010 530337 Exelon Infra ANGEL INFIN PRIVATE LIMITED B 73306 20.20
25/2/2010 530337 Exelon Infra PARAG RASIKLAL SHAH HUF B 49495 20.13
25/2/2010 530337 Exelon Infra BHAVIN Y MEHTA B 25000 21.80
25/2/2010 530337 Exelon Infra DYNAMIC STOCK BROKING INDIA PVT LTD B 26537 21.45
25/2/2010 530337 Exelon Infra DYNAMIC STOCK BROKING INDIA PVT LTD S 24507 21.46
25/2/2010 530337 Exelon Infra BHAVIN Y MEHTA S 25000 19.80
25/2/2010 530337 Exelon Infra PARAG RASIKLAL SHAH HUF S 49495 21.80
25/2/2010 530337 Exelon Infra ANGEL INFIN PRIVATE LIMITED S 39080 20.40
25/2/2010 530337 Exelon Infra HITESH SHASHIKANT JHAVERI S 41001 21.80
25/2/2010 530337 Exelon Infra POTINENI KOTESWARA RAO S 25000 20.31
25/2/2010 532631 Fame India RELIANCE CAPITAL PARTNERS B 274682 83.11
25/2/2010 532631 Fame India MONEY MATTERS ADVISORY SERVICES LIMITED S 355847 83.91
25/2/2010 532139 G Tech Info VIJAY KUMAR JASRASARIA S 500000 4.85
25/2/2010 532957 Gokak Textiles INDIA DISCOVERY FUND LIMITED B 95033 45.00
25/2/2010 532957 Gokak Textiles GHEVAR INVESTMENTS AND TRADING COMPANY PRIVATE LIMITED S 95000 45.00
25/2/2010 523467 Jai Mata Glass KOMAL MAHENDRU S 80000 3.02
25/2/2010 530255 KAY Power KAILASH CHAND GUPTA B 55790 17.17
25/2/2010 530255 KAY Power SUNIL KUMAR GUPTA B 77420 17.51
25/2/2010 530255 KAY Power NAVAL KISHORE GUPTA B 263550 17.17
25/2/2010 530255 KAY Power BAMPSL SECURITIES LTD B 251252 17.42
25/2/2010 530255 KAY Power BAMPSL SECURITIES LTD S 349061 17.18
25/2/2010 530255 KAY Power SUNDERDASS AGARWAL S 144800 17.17
25/2/2010 530255 KAY Power KAILASH CHAND GUPTA S 58879 17.79
25/2/2010 530255 KAY Power GIRRAJ PRASAD GUPTA S 103000 17.18
25/2/2010 531892 Khandwala Sec FALCON BROKERAGE STOCK/PMS PVT LTD B 100000 24.44
25/2/2010 531892 Khandwala Sec S C DOSHI HUF S 98785 24.45
25/2/2010 531602 Koffee Break SUCHIT KUMAR VIJAY SHANKAR GOUND B 1358786 1.68
25/2/2010 531602 Koffee Break SUCHIT KUMAR VIJAY SHANKAR GOUND S 756633 1.60
25/2/2010 531602 Koffee Break JASWANT DIPCHAND MEHTA S 400000 1.70
25/2/2010 526596 Liberty Shoes TRANSGLOBAL SECURITIES LTD. B 92151 102.18
25/2/2010 526596 Liberty Shoes TRANSGLOBAL SECURITIES LTD. S 92151 102.24
25/2/2010 531272 Nikki Global MADHU RANI GOENKA B 25000 72.65
25/2/2010 532986 Niraj Cement RAJARAM VISHWAS PATIL B 179586 54.08
25/2/2010 532986 Niraj Cement RAJARAM VISHWAS PATIL S 153483 52.32
25/2/2010 524764 Nutraplus Prod JAVALGEKAR ASHA SHREEKANT B 27988 16.74
25/2/2010 531996 Odyssey Corp EFORCE INDIA PRIVATE LIMITED S 50000 63.25
25/2/2010 531496 Omkar Overseas SHRENI SHARES PRIVATE LTD B 57000 56.50
25/2/2010 531496 Omkar Overseas JITENDRA VRAJLAL SHAH B 30000 56.75
25/2/2010 531496 Omkar Overseas PRAKASHKUMAR DEVSHILAL SHETH B 25000 56.95
25/2/2010 531496 Omkar Overseas PRAKASHKUMAR DEVSHILAL SHETH S 25000 56.91
25/2/2010 531496 Omkar Overseas PRAKASHKUMAR DEVSHILAL SHETH S 38750 56.34
25/2/2010 531496 Omkar Overseas RESHMA NAYANKUMAR SHAH S 50000 56.73
25/2/2010 512097 Oregon Comm NIMAI AGENCIES PRIVATE LIMITED B 7997 174.74
25/2/2010 512097 Oregon Comm KRUPA SANJAY SONI B 5973 173.77
25/2/2010 512097 Oregon Comm JIGESH AMRUTLAL HIRANI S 5000 172.90
25/2/2010 512097 Oregon Comm NIMAI AGENCIES PRIVATE LIMITED S 7997 172.40
25/2/2010 512097 Oregon Comm PATEL SHAILESH JIVANLAL S 14155 169.07
25/2/2010 531726 Panchsheel Org SHAILESHBHAI CHATURBHAI PATEL B 52870 37.57
25/2/2010 511702 Parsharti Inv KRUPA SANJAY SONI B 16032 21.39
25/2/2010 530923 Passari Cellu PRIMEX LTD. B 26207 49.59
25/2/2010 502587 Rama Pulp PREMIUM HOSPITALITY SERVICES PRIVATE LIMITED B 49000 31.35
25/2/2010 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA B 165592 31.50
25/2/2010 502587 Rama Pulp RICH APPARELS PRO MANOJ MEHTA B 55641 31.40
25/2/2010 502587 Rama Pulp MUNISH HANDA B 58387 31.41
25/2/2010 502587 Rama Pulp RAJNEESH KANT SHRIVASTAVA B 94295 31.45
25/2/2010 502587 Rama Pulp RAJNEESH KANT SHRIVASTAVA S 94295 31.51
25/2/2010 502587 Rama Pulp RICH APPARELS PRO MANOJ MEHTA S 55641 31.34
25/2/2010 502587 Rama Pulp GAJRIA JAYNA PRECISION INDVSTRIES PRIVATE LIMITED S 49000 31.35
25/2/2010 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA S 149527 31.45
25/2/2010 502587 Rama Pulp MUNISH HANDA S 55676 31.46
25/2/2010 512359 Rotam Comm HASMUKH MALANI S 11111 75.08
25/2/2010 531569 Sanjivani Par DRISHTI SHARES B 61400 61.02
25/2/2010 531569 Sanjivani Par PRAVIN HARISHANKR OZA B 52400 55.56
25/2/2010 531569 Sanjivani Par Naman Securities & Finance Pvt. Ltd. B 36142 59.99
25/2/2010 531569 Sanjivani Par NARESH CHAND JAIN B 40453 60.38
25/2/2010 531569 Sanjivani Par PRABHUDAS LILLADHAR PVT LTD B 54322 60.48
25/2/2010 531569 Sanjivani Par SUNIL SHAH B 55000 59.80
25/2/2010 531569 Sanjivani Par PALLAVI MANOJ DESAI B 40629 55.56
25/2/2010 531569 Sanjivani Par BP FINTRADE PRIVATE LIMITED B 59861 60.86
25/2/2010 531569 Sanjivani Par BP FINTRADE PRIVATE LIMITED S 56861 60.97
25/2/2010 531569 Sanjivani Par SUNIL SHAH S 35000 61.35
25/2/2010 531569 Sanjivani Par BHUSHAN SARKAR S 134595 60.57
25/2/2010 531569 Sanjivani Par SEKULIAN GAMI S 31512 60.54
25/2/2010 531569 Sanjivani Par PRABHUDAS LILLADHAR PVT LTD S 54322 60.71
25/2/2010 531569 Sanjivani Par KESHAW PATWARI S 31000 60.45
25/2/2010 531569 Sanjivani Par NARESH CHAND JAIN S 40453 60.18
25/2/2010 531569 Sanjivani Par PRAVIN HARISHANKR OZA S 52400 60.56
25/2/2010 531569 Sanjivani Par Naman Securities & Finance Pvt. Ltd. S 35142 59.92
25/2/2010 532793 Shree Ashtavina TRANS FINANCIAL RESOURCES LIMITED B 839538 14.97
25/2/2010 532793 Shree Ashtavina AVR OVERSEAS PVT LTD S 1100000 14.99
25/2/2010 526479 SKY Inds VIJAY JAMNADAS VORA B 22000 81.23
25/2/2010 532956 Solectron EMS MANJULA JAYNTILAL JAIN S 59000 56.04
25/2/2010 532447 Solvay Pharma UNITED SHIPPERS LTD B 43000 2868.00
25/2/2010 532447 Solvay Pharma East Sail A/c MEP/Pari Washington S 26291 2839.32
25/2/2010 532447 Solvay Pharma PAREKH INTERATED SERVICES PVT LTD S 43000 2868.00
25/2/2010 532669 Southern Onlin SAMRIDHI SHARE AND STOCK BROKER LIMITED B 200000 21.25
25/2/2010 532669 Southern Onlin ARPIT SHARE BROKERS PRIVATE LIMITED B 300000 21.25
25/2/2010 532669 Southern Onlin SRIJAN TIE- UP PRIVATE LIMITED S 500000 21.25
25/2/2010 512153 Specular Mktg RASIKLAL HIRALAL & CO PVT LTD B 4700 6.40
25/2/2010 512153 Specular Mktg ARECH MARKFIN PVT LTD S 4700 6.40
25/2/2010 533157 SYNCOM HEAL RKSV SECURITIES INDIA PRIVATE LIMITED B 177359 93.00
25/2/2010 533157 SYNCOM HEAL OPG SECURITIES P LTD B 281493 94.19
25/2/2010 533157 SYNCOM HEAL SPS SHARE BROKERS PRIVATE LIMITED B 100000 95.00
25/2/2010 533157 SYNCOM HEAL SANJEEV SINGHAL B 209179 94.28
25/2/2010 533157 SYNCOM HEAL MARWADI SHARES AND FINANCE LTD. B 121313 93.94
25/2/2010 533157 SYNCOM HEAL ATUL R JAIN B 99500 93.29
25/2/2010 533157 SYNCOM HEAL TRANSGLOBAL SECURITIES LTD. B 387667 93.34
25/2/2010 533157 SYNCOM HEAL MAHALAXMI BROKERAGE (INDIA) PRIVATE LIMITED B 94652 93.42
25/2/2010 533157 SYNCOM HEAL SMART EQUITY BROKERS PRIVATE LIMITED B 121766 94.44
25/2/2010 533157 SYNCOM HEAL GENUINE STOCK BROKERS PVT. LTD. B 389046 93.99
25/2/2010 533157 SYNCOM HEAL MAHALAXMI BROKERAGE (INDIA) PRIVATE LIMITED S 96646 93.15
25/2/2010 533157 SYNCOM HEAL SMART EQUITY BROKERS PRIVATE LIMITED S 121766 94.44
25/2/2010 533157 SYNCOM HEAL TRANSGLOBAL SECURITIES LTD. S 387667 93.33
25/2/2010 533157 SYNCOM HEAL ATUL R JAIN S 99500 93.25
25/2/2010 533157 SYNCOM HEAL GENUINE STOCK BROKERS PVT. LTD. S 389046 93.97
25/2/2010 533157 SYNCOM HEAL MARWADI SHARES AND FINANCE LTD. S 121313 93.84
25/2/2010 533157 SYNCOM HEAL OPG SECURITIES P LTD S 281493 94.19
25/2/2010 533157 SYNCOM HEAL SANJEEVSINGHAL S 209179 94.32
25/2/2010 533157 SYNCOM HEAL SPS SHARE BROKERS PRIVATE LIMITED S 100000 93.74
25/2/2010 533157 SYNCOM HEAL RKSV SECURITIES INDIA PRIVATE LIMITED S 177359 92.90
25/2/2010 531831 Unisys Soft RAJ KUMAR SHARMA S 534761 20.72
25/2/2010 530961 Vikas Globalone JAI GANESH CHIT FUND PVT LTD B 107396 27.80
25/2/2010 530961 Vikas Globalone SUPER PLASTIC COATS S 102396 27.80
* B - Buy, S - Sell
NSE Bulk Deals to Watch - Feb 25 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,A K G SECURITIES AND CONSULTANCY LTD.,BUY,132991,30.09,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,577262,29.96,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,AMBIT SECURITIES BROKING PVT. LTD.,BUY,108860,29.75,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,AMIT MANILAL GALA,BUY,125693,29.89,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,ASHWIN COMMODITIES AND SHARES PVT. LTD.,BUY,90000,30.54,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,AUM SECURITIES PRIVATE LTD.,BUY,168000,30.10,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,BAFNA RAMESH KUMAR,BUY,165000,30.89,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,CPR CAPITAL SERVICES LTD.,BUY,233328,29.98,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,DEEPAK SHANTILAL CHHEDA,BUY,109136,30.35,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,DEPANSU SECURITIES (INDIA) PVT LTD,BUY,156454,29.48,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,532784,30.39,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,170723,30.50,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,MUKUL RAMVALLABH TIBREWALA,BUY,90000,30.20,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,NAINISH JAYANTIBHAI WADIWALA,BUY,142738,30.04,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,298970,30.14,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,OM INVESTMENTS,BUY,168910,30.04,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,PASHUPATI CAPITAL SERVICES PVT. LTD.,BUY,118783,29.87,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,SACHIN GUPTA,BUY,86861,30.06,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,SHYAMSUNDER BIYANI,BUY,96251,30.34,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,THIMBRA POORNIMA,BUY,100000,30.13,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,101730,30.51,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,VASANTI SHARE BROKERS LIMITED,BUY,115113,30.04,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,VISHAL KISHORE BHATIA,BUY,165000,30.79,-
25-FEB-2010,FAME,Fame India Limited,RELIANCE CAPITAL PARTNERS,BUY,319879,83.11,-
25-FEB-2010,LIBERTSHOE,Liberty Shoes Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,93714,102.01,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,AUM SECURITIES PRIVATE LTD.,BUY,180250,94.19,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,BHARGAVI ATUL JAIN,BUY,107271,93.52,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,DEEPAK SHANTILAL CHHEDA,BUY,152537,93.38,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,432200,93.87,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,LAXMI GOVIND KULKARNI,BUY,141000,93.84,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,LISTO HOLDINGS PRIVATE LIMITED,BUY,108050,93.46,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,MAHALAXMI BROKRAGE INDIA PRIVATE LIMITED,BUY,99431,93.22,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,131539,93.70,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,NIKON FINLEASE PVT. LTD,BUY,97205,93.34,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,OM INVESTMENTS,BUY,159912,93.43,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,PINAC STOCK BROKERS PVT LTD,BUY,202014,93.28,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,382502,93.27,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,VISHAL KISHORE BHATIA,BUY,90000,93.20,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,VORA JINALBEN BHAVIKBHAI,BUY,213,93.80,-
25-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,BHARAT SECURITIES PVT LTD,BUY,100219,68.31,-
25-FEB-2010,BAJAJHIND,Bajaj Hindusthan Ltd,BARCLAYS CAPITAL MAURITIUS LIMITED,SELL,1290000,150.76,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,A K G SECURITIES AND CONSULTANCY LTD.,SELL,132991,30.03,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,582262,29.90,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,AMBIT SECURITIES BROKING PVT. LTD.,SELL,108860,29.82,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,AMIT MANILAL GALA,SELL,125693,29.98,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,ASHWIN COMMODITIES AND SHARES PVT. LTD.,SELL,90000,30.58,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,AUM SECURITIES PRIVATE LTD.,SELL,168000,29.51,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,BAFNA RAMESH KUMAR,SELL,165000,29.83,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,CPR CAPITAL SERVICES LTD.,SELL,234828,30.01,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,DEEPAK SHANTILAL CHHEDA,SELL,109136,30.44,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,DEPANSU SECURITIES (INDIA) PVT LTD,SELL,156454,29.69,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,532784,30.30,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,170723,30.15,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,MUKUL RAMVALLABH TIBREWALA,SELL,90000,29.86,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,NAINISH JAYANTIBHAI WADIWALA,SELL,142738,30.03,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,298970,30.21,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,OM INVESTMENTS,SELL,169860,30.10,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,PASHUPATI CAPITAL SERVICES PVT. LTD.,SELL,118783,29.88,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,SACHIN GUPTA,SELL,91861,30.15,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,SHYAMSUNDER BIYANI,SELL,96251,30.17,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,THIMBRA POORNIMA,SELL,100000,29.18,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,101730,30.48,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,VASANTI SHARE BROKERS LIMITED,SELL,115113,29.98,-
25-FEB-2010,EMMBI,Emmbi Polyarns Ltd,VISHAL KISHORE BHATIA,SELL,165000,29.85,-
25-FEB-2010,FSL,Firstsource Solutions Lim,SOCIETE GENERALE,SELL,4959000,26.59,-
25-FEB-2010,LIBERTSHOE,Liberty Shoes Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,93714,102.12,-
25-FEB-2010,ORCHIDCHEM,Orchid Chemicals Ltd.,MORAGAN STANLEY DEAN WITTER MAURITIUS COMPANY LTD,SELL,426300,162.98,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,AUM SECURITIES PRIVATE LTD.,SELL,180250,92.67,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,BHARGAVI ATUL JAIN,SELL,107271,93.48,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,DEEPAK SHANTILAL CHHEDA,SELL,152537,93.51,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,432200,93.98,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,LAXMI GOVIND KULKARNI,SELL,141000,91.60,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,LISTO HOLDINGS PRIVATE LIMITED,SELL,108050,93.51,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,MAHALAXMI BROKRAGE INDIA PRIVATE LIMITED,SELL,99431,93.48,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,131539,93.83,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,NIKON FINLEASE PVT. LTD,SELL,97205,93.34,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,OM INVESTMENTS,SELL,159912,93.46,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,PINAC STOCK BROKERS PVT LTD,SELL,192051,93.17,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,382502,93.36,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,VISHAL KISHORE BHATIA,SELL,90000,91.57,-
25-FEB-2010,SYNCOM,Syncom Healthcare Ltd,VORA JINALBEN BHAVIKBHAI,SELL,104600,93.29,-
25-FEB-2010,TATACHEM,Tata Chemicals Ltd.,DEUTSCHE BANK AG, LONDON,SELL,1383270,277.74,-
25-FEB-2010,TATACHEM,Tata Chemicals Ltd.,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,1288580,279.41,-
25-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,BHARAT SECURITIES PVT LTD,SELL,100219,67.89,-
Market recovers on FM’s speech
Today's major news
Larsen & Toubro’s units to borrow $2.2 billion; the stock rises 2.47%
Wipro bags contract from Punjab & Sind Bank; the stock declines 0.13%
Gammon India builds on winning contract; the stock slides 1.27%
State Bank of India may raise up to Rs20,000 crore via rights; the stock slips 0.33%
Ashok Leyland and Paramount ink a defence deal; the stock moves 0.86% up
Global signals
European shares rose on early trades with gains for Royal Bank of Scotland and Credit Agricole after they reported results, outweighing lower commodity stocks. At the time of writing this report, FTSE 100 was up 0.18%.
All the major Asian indices except Shanghai Composite closed red. SGX Nifty closed 6 points down.
US stock futures opened lower on Thursday, signifying a weaker start for Wall Street as investors continue to be cautious on US Federal Reserve Chairman Ben Bernanke’s testimony on monetary policy and state of economy.
Indian indices
Domestic markets ended the lacklustre though volatile session flat. The strong global cues helped Indian indices open higher with a gap-up of nine points at 16264. However it soon slipped and never saw that level through the day. In the mid session it made the low of 16167 points, but it soon recovered and went into positive zone following Finance Minister’s speech and optimistic economic outlook presented in the economic survey. However, as per the prevailing trend in the market over the last few weeks, the markets ended flat, down 1.77 points.
Market sentiment
Despite ending high the advance/decline ratio, the number of advancing shares to declining shares, was negative. Of the 2,899 stocks traded on BSE, where only 1,278 stocks advanced, 1,521 stocks declined. Hundred stocks remained unchanged
Sectoral & stock screening
In a dull trading session, owing to Rail Budget and today’s economic survey, capital goods (CG) followed by information technology (IT) stocks drew investor interest with the BSE CG and BSE IT closing 1.27% and 0.55 higher respectively. BSE Oil & Gas followed by FMCG slid the most by 1.05% and 0.83 respectively. The remaining sectors were either marginally up or down.
On the stocks' front, GVK Power & Infrastructure surged the most—by 5.60%—followed by Godrej Industries, which rose 5.38%, and Mudra Port that jumped 4.02%. On the losers’ list, Mphasis slid the most—by 8.43%—followed by Godrej Consumers Products, which declined 6.47% and Shree Renuka Sugars that was down 4.11%.
Viewing volumes
India’s second largest realty company, Unitech, was the most actively traded share with over 61.69 lakh shares changing hands on BSE followed by leading integrated steel maker Ispat Industries (32.36 lakh shares), wind power major Suzlon Energy (29.05 lakh shares) and Hyderabad-based infrastructure company GVK Power and Infrastructure (24.22 lakh shares) and IFCI (19.38 lakh shares).
Hathway Cable & Datacom sees dismal debut
Settles at Rs 207.80 on BSE, at a discount of 13.41% to the IPO price of Rs 240
Hathway Cable & Datacom saw a dismal debut today, 25 February 2010. The stock settled at Rs 207.80 on BSE, at a discount of 13.41% to the initial public offer price of Rs 240.
Earlier, the Hathway Cable & Datacom stock listed at Rs 246 on the BSE, a premium of 2.5% over the issue price of Rs 240. The stock hit a high of Rs 246 and low of Rs 206.20.
The counter clocked high volume of 62.48 lakh shares on BSE.
Hathway Cable & Datacom's initial public offering (IPO) of 2.77 crore shares, which ended on 11 February 2010, was subscribed 1.36 times. The company had fixed the IPO price at the lower end of the Rs 240-265 a share price band.
On 8 February 2010, the company received a commitment for Rs 119.88 crore from 13 anchor investors. The company issued 49.95 lakh equity shares to 13 anchor investors at Rs 240 a piece.
Hathway Cable & Datacom is a leading cable television services provider in India as well as one of the leading cable broadband services providers.
The company's plans to use the funds raised through the recently concluded IPO to fund customer acquisitions; investment in the development of digital services and set top boxes; investment in the development of broadband infrastructure, capital expenditure and services; repayment of loans; and fund expenditure for general corporate purposes.
For the period of six months ended September 2009, it has reported net loss of Rs 35.63 crore on total income of Rs 364.92 crore.
Small-cap, mid-cap indices slide as caution prevails ahead of the Budget
The key benchmark indices closed after moving between positive and negative zone in intraday trade as investors preferred to stay on the sidelines ahead of the Budget. Finance Ministry's Economic Survey for 2009-2010 tabled in the parliament today, 25 February 2010, predicted that India would bounce back to a high 9% growth in 2011-12 and is on its way to becoming the world's fastest growing economy in four years. Meanwhile, the latest data showed a strong growth in the infrastructure sector in the month of January 2010.
The BSE 30-share Sensex was down 1.77 points or 0.01%, up close to 90 points from the day's low and off close to 70 points from the day's high. Finance Minister Pranab Mukherjee will table Union Budget 2010-2011 in the parliament at 11:00 IST on Friday, 26 February 2010.
Auto stocks were mixed. IT, capital goods and realty stocks rose. But, index heavyweight Reliance Industries edged lower. FMCG stocks also fell. The Economic Survey said, the broad based nature of the recovery creates scope for a gradual roll back, in due course, of some of the measures undertaken over the last 15 to 18 months to put the economy back on the growth path.
The infrastructure sector output grew 9.4% in January 2010 from a year earlier, higher than an upwardly revised annual growth of 6.4% in December 2009, government data showed on Thursday. During April-January, the first 10 months of the 2009/10 fiscal year, output rose 5.4% from 3% a year ago. The infrastructure sector accounts for 26.7% of India's industrial output.
India VIX, a volatility index based on the S&P CNX Nifty index option prices, declined for the third day in a row after a recent sharp surge. The index declined 2.8% to 29.55. India VIX is a measure ofthe market's expectation of volatility over the next 30 calendar days.
The market pared gains soon after a firm start. The Sensex slipped into the red in morning trade as most Asian stocks fell. It cut losses after hitting fresh intraday lows in early afternoon trade. It moved in a narrow range in afternoon trade. The market once again pared losses in mid-afternoon trade. The intraday recovery gathered steam in late trade.
The Economic Survey tabled in the parliament today said capital inflows from advanced economies could be a challenge for India as they might lead to overheating of the economy. With interest rates at historic lows in most advanced economies, capital flows from these countries are finding their way into the fast growing Asian economies, including India.
It added that issue that arises is whether inflows are in excess of the domestic absorptive capacity or this could lead to overheating of the economy. The Survey added that this can also be looked at as the "impossible trinity" dilemma of policy choice between price stability, exchange rate stability and capital mobility.
Meanwhile, the 13th Finance Commission recommended increase in states share to 32% of Central tax proceeds from the current level of 30.5%. The Commission said the government must cut its fiscal deficit to 3% of the GDP by 2013/14 and eliminate its revenue deficit in the year after. It also said the government must also cap its total debt at 68% of the GDP by the 2014/15 financial year. These recommendations have been accepted in principle by the government, the Commission said.
The Commission has projected fiscal deficit of 5.7% for the the year to March 2011 and 4.8% for the year through March 2012. The fiscal deficit should drop to 4.2% in 2012/13 and to 3% in 2013/14, it said. The Commission said the government should list all low-yielding state firms
The Reserve Bank of India has estimated the economy has capacity to absorb federal and state borrowings equal to 5-6% of GDP in the fiscal years 2010/11 to 2014/15, the Commission's said.
The Commission also proposed that a new Fiscal Responsibility and Budgetary Management (FRBM) Act should have a space for relaxing targets of deficits on account of economic shocks. The FRBM Act needs to specify the nature of shocks that would require relaxation of the targets thereunder, the commission recommended.
The Economic Survey today called for channelising long-term contractual savings for the development of core sectors on a large scale. The pre-Budget document on health of the economy stated that telecom, power, coal, ports, civil aviation and roads have shown signs of recovery in 2009-10. However, reaching the target of an infrastructural investment of 9% of the GDP fixed by the 11th Five-Year Plan (2007-12) would be extremely challenging task, it survey said.
The economic survey for the 2009-10 financial year urged a calibrated exit from fiscal stimulus, which cushioned India's economy from the worst of the global downturn. The report, presented in parliament ahead of Friday's general budget, forecast economic growth at 8.25-8.75% in 2010/11, accelerating to over 9% the year after, compared with projected growth of 7.2-7.5% in the current year.
It also highlighted the possibility of the economy achieving a double-digit growth within the next four years, underscoring the view that the economy is on a firm footing.
Strong growth along with supply-side inflationary pressures are pushing up inflation in India. High food prices, which rose over 17% in January, could spill over into general inflation, the report said. Lasting fiscal consolidation could accrue with reforms in the design and delivery of planned schemes, outcome focus of expenditure and institutional reforms, the report said.
The government is financing its fiscal gap for the current fiscal year by a record Rs 4,51,000 crore ($97 billion) of market borrowing and analysts fear high government borrowing in the next fiscal year runs the risk of crowding out private credit demand and hurting the economic recovery.
The 13th Finance Commission said the government can raise funds equal to 0.88% of GDP per year via stake sales in next 5 years. It said stake sales in unlisted state firms could garner Rs 24,000 crore and the stake sales of listed state firms could garner Rs 3,41,000 crore. Stake-sales in state banks could fetch Rs 17000 crore, the panel said.
The economic survey said risk of double-dip recession in advance economies has direct implication for India. The survey said production of farm and allied sectors fell 0.2% in 2009-10, adding that there is a need for serious policy initiatives to achieve annual 4% agriculture growth. The survey suggested direct food subsidy via food coupons to households and favours making available food in open market. The survey also favours issuing monthly ration coupons for the poor.
Coming back to stocks, rollover in Nifty futures was about 55% from February 2010 series to March 2010 series at the end of Wednesday's trade. Rollover in Mini Nifty futures was about 39.05% and the market wide rollover was about 59%. The near-month February 2010 derivatives contracts expired today.
Railway Minister Mamta Banerjee cut freight rates for grains and kerosene by Rs 100 ($2.2) per wagon and kept passenger fares and freight rates unchanged in the Railway budget 2010-11 presented in the Parliament on 24 February 2010, adding to measures designed to help tame persistently high inflation. Among other major measures, she proposed Rs 41,426 crore, the highest ever plan investment to provide efficient, customer focused and modern railway network.
Finance Minister Pranab Mukherjee said on Tuesday the government will continue measures to tame inflation in the financial year ending March 2011. The Reserve Bank of India (RBI) governor D Subbarao said on Wednesday that inflation continued to be a dominant concern. Last week, he had said the central bank would stand by its end-March inflation forecast of 8.5% and said that RBI expects current inflation to moderate by July.
As far the Union Budget 2010-2011 is concerned, the government may announce increase in 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. The government's revenue will also get a boosts from sale of 3G auction and divestment. 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.
The fate of three important fiscal bills, which had been stalled by the Left parties, will be closely watched. These are the Pension Fund Regulatory and Development Authority (PFRDA) Bill, Insurance Bill and Banking Regulation (Amendment) Bill.
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.
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 Centre on Wednesday said it was confident of reaching an amicable solution with the states on the differences over the proposed Goods and Services Tax, which is now certain to miss the April 1, 2010 deadline for its rollout.
European markets reversed early losses on Thursday. The key benchmark indices in Germany and UK rose by between 0.04% to 0.11%. But, France's CAC 40 fell 0.11%.
Asian stocks declined on Thursday on concern Greece's credit rating will be downgraded, putting the global economic recovery at risk. The key benchmark indices in Indonesia, Japan, South Korea, Hong Kong, Singapore and Taiwan fell by between 0.33% to 1.57%. But China's Shanghai Composite rose 1.27%.
Trading in US index futures indicated Dow could fall 39 points at the opening bell on Thursday, 25 February 2010.
US stocks closed higher on Wednesday after Federal Reserve Chairman Ben Bernanke reassured lawmakers interest rates will remain low, promising more cheap money to investors. Stocks had slipped in initial trade on disappointing new home sales data for January. The 11.2% drop in home sales was their worst monthly downturn since January 2009.
The Dow Jones Industrial Average rose 91.75 points or 0.89% to 10,374.16. The Nasdaq Composite index rose 22.46 points or 1.01% to 2235.9o and the S&P 500 gained 10.64 points or 0.97% to 1105.24.
In a prepared statement for his semi-annual testimony on monetary policy, Fed chairman Bernanke indicated that the FOMC continues to anticipate a moderate pace of economic recovery and that inflation is expected to remain subdued.
Closer home, the BSE 30-share Sensex was down 1.77 points or 0.01% to 16,254.20. The barometer index rose 73.36 points at the day's high of 16,329.33 in early trade. The Sensex fell 88.84 points at the day's low of 16,167.13 in mid-morning trade.
The S&P CNX Nifty was up 1.15 points or 0.02% to 4859.75.
The market breadth, indicating the overall health of the market was negative. The breadth was strong earlier in the day. On BSE, 1501 shares declined as compared with 1268 that rose. A total of 105 shares remained unchanged.
From the 30 share Sensex pack, 16 declined while the rest rose.
BSE clocked turnover of Rs 2950 crore, much lower than Rs 4578.74 crore on Wednesday, 24 February 2010.
The BSE Mid-Cap index fell 0.48% and the BSE Small-Cap index fell 0.18%. Both the indices underperformed the Sensex.
Sectoral indices on BSE were mixed. BSE Capital Goods index (up 1.27%), BSE IT index (up 0.55%), Bankex (up 0.29%), Consumer Durables index (up 0.19%), Healthcare index (up 0.16%), and BSE Realty index (up 0.11%), outperformed the Sensex. BSE Power index (down 0.02%), Auto index (down 0.05%), BSE PSU index (down 0.15%), Metal index (down 0.16%), FMCG index (down 0.83%), and Oil & Gas index (down 1.05%), underperformed the Sensex.
Index heavyweight Reliance Industries (RIL) fell 1.31%. Petroleum minister Murli Deora told Rajya Sabha on Tuesday that oil and natural gas producers, including RIL need not share the marketing margin they charge from their clients with the government.
Meanwhile, RIL may reportedly raise its offer for bankrupt petrochemicals maker LyondellBasell to about $14.5 billion. RIL had previously offered a deal that valued Lyondell at $13.5 billion. LyondellBasell recently settled a dispute with creditors that has paved the way for its exit from bankruptcy.
As regards Union Budget 2010-2011, the finance minister may give infrastructure status to the oil & gas sector to promote investments. There may be tax benefits for city gas distribution and extension in tax holiday for new refineries. He may also announce declared goods status to the natural gas. The finance minister may abolish service tax on exploration and production activities.
India's largest drug maker by sales Ranbaxy Laboratoires rose 0.51% after company reported a net profit of Rs 48.82 crore in Q4 December 2009 compared to a net loss of Rs 81.90 crore in Q4 December 2008. The company announced the result during trading hours today.
But other healthcare stocks fell. Sun Pharmaceuticals Industries, Sun Pharmaceutical Industries, Pfizer and Biocon fell by between 0.64% to 2.73%.
Rate sensitive auto shares were mixed. India's biggest tractor maker by sales Mahindra & Mahindra (M&M) rose 0.23%, reversing early losses.
India's largest commercial vehicle maker by sales Tata Motors fell 2.69%, declining for the third straight day. Tata Motors said recently 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 recently 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.
India's largest car maker by sales Maruti Suzuki India rose 2.37%, extending Wednesday's gains. The stock had lost 3.24% on Tuesday after the company said it is recalling 100,000 of its A-Star hatchbacks to fix a possible fuel leak. The recall of Maruti's popular model, which is exported to Europe, began in November 2009 and is about half complete. It will cost less than Rs 10 crore ($2.2 million), the company said. Maruti said it had not received any customer complaints.
The government is widely expected to raise excise duties on automobiles in Union Budget 2010-2011 this week. A hike in excise duty in the Budget 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 and Tata Motors 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
India's largest engineering and construction firm by sales Larsen & Toubro rose 2.47%, gaining for the second straight day after the company reportedly signed a joint venture agreement with Karnataka Power Corporation for setting up power plants.
India's largest power equipment maker by sale Bharat Heavy Electricals (Bhel) rose 0.93%, reversing early losses.
The government may levy customs duty on import of equipment for power projects in the Union Budget 2010-11, which may give a fillip to domestic manufacturers of boilers, turbines and generators. The levy of import duty on equipment for power projects will benefit companies such as Bhel and L&T.
Rate sensitive realty shares rose on bargain hunting. Indiabulls Real Estate, DLF, Sobha Developers rose by between 0.14% to 1.15%.
Industry watchers expect that in the coming budget finance minister may increase priority sector housing loans to Rs 30 lakh from existing Rs 20 lakh. There may be a greater thrust on public private partnership (PPP) projects in housing. There may be an increase in allotment to the Rajiv Gandhi Awas Yojana (slum rehabilitation programme). Increase in tax breaks provided to housing finance and infrastructure lending companies is also expected. There may be a re-introduction of tax holiday for housing projects under Sec 80 IB (10). The increase in income tax deduction under Sec 80 C on home loan principal re-payment from Rs 1 lakh to Rs 2- 3 lakh is also expected.
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.
FMCG stocks fell as excise duty on fast moving consumer goods (FMCG) is expected to go up by 200-300 basis points in the 2010-11 Budget. ITC, Hindustan Unilever, Tata Tea, Dabur India, Nestle India and United Spirits fell by between 0.08% to 2.71%.
Higher excise duty may result in margin pressure on some companies. Companies may resort to price hikes with a lag of one or two quarters. Firms such as Dabur India, Godrej Consumer Products and Marico will be relatively less impacted as they do have production units in excise-exempt locations.
Software majors rose on hopes of extension of tax sops in the Budget. India's largest IT exporter by sales Infosys Technologies rose 1.37%. Its ADR rose 1.71% on Wednesday.
India's second largest IT exporter by sales TCS rose 0.08%. Tata Consultancy Services is seeing strong demand from clients in sectors such as financial services, utilities and pharmaceuticals, its chief executive N. Chandrasekaran said recently. However, sluggish demand from manufacturing sector continues to be a concern, he added. But, India's third largest IT exporter by sales Wipro fell 0.13% reversing early gains. Its ADR rose 1.06% on Wednesday.
The IT sector is looking for an extension of the tax holiday for the Software Technology Park of India (STPI) scheme in Union Budget 2010-2011. The government provides tax benefits under Section 10 (A) of Income Tax Act for units set up in the Software Technology Parks of India (STPIs), which is due to expire on 31 March 2011 (FY 2011). If the scheme is extended by one more year till 31 March 2012 (FY 2012), it will boost projected FY 2012 earnings of IT firms
Telecom stocks were mixed. The government will auction three slots each of third-generation wireless spectrum in most of its telecoms zones, including in the lucrative Delhi and Mumbai regions, from 9 April 2010, the telecoms ministry said on Thursday.
India's largest cellular services provider by sales Bharti Airtel rose 0.16%. Bharti Airtel, which is in talks to buy the African assets of Kuwaiti telecoms firm Zain, sees good potential in that continent amongst all emerging markets, chairman Sunil Mittal told a conference call on Thursday.India's second largest cellular services provider by sales Reliance Communications slipped 1.59% extending losses for the second straight day.
The government will invite applications from prospective bidders from 25 February 2010 and the last day for submitting bids is 19 March 2010.
Consumer durable stocks rose on hopes of strong consumption demand. Blue Star, Videocon Industries, Rajesh Exports and Asian Star Company rose by between 0.11% to 2.02%.
India's largest power utility firm by sales NTPC fell 2.03%. The company's follow on public offer managed to scrape through early this month with the issue getting subscribed 1.2 times. The issue, through which the government is divesting 5% of its stake, at a floor price of Rs 201 a share, opened on 3 February 2010 and closed on 5 February 2010. At the floor price, the follow-on-public offer (FPO) is valued at Rs 8,286 crore.
Among other power stocks, Reliance Power, CESC, Reliance Infrastructure fell by between 0.25% to 0.87%.
The Budget expectations for the power sector include extension of income tax exemption for mega power generation projects. Among other expectations are an increase in the allocation towards the government-led electrical infrastructure augmentation schemes viz. Rajeev Gandhi Grameen Viyuktikaran Yojana (RGGVY) and Restructured Acclerated Power Development and Reforms Programme (R-APDRP) and reduction of import duty on thermal coal.
Metal stocks fell on profit taking. Bhushan Steel, Sterlite Industries, Hindalco Industries, Sterlite Industries,, Jindal Sawfell by between 0.76% to 1.59%.
Tata Steel, the world's number 8 steelmaker by capacity was flat. Tata Steel 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. 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.
Industry watchers expect that in the coming budget there may be an increase in excise duty cut to 10% from current 8%. There might be no change in customs duty structure. There may also be a removal of the 5% import duty on stainless steel and alloy steel scraps.
Rate sensitive banking shares fell on worries the central bank may raise interest rates to tame inflation. India's largest bank by net profit and branch network State Bank of India fell 0.33%. State Bank of India (SBI) is reportedly planning to raise around Rs 10,000-20,000 crore through a rights issue and is hopeful that a proposal on these lines may be made in the Budget. SBI on Monday said banks' lending rates are expected to remain stable in the next 5-6 months because of the slow credit offtake despite RBI hiking the cash reserve ratio by 75 basis points.
India's largest private sector bank by operating income HDFC Bank fell 0.87%. The bank has increased fixed deposit (FD) rates across nine maturities by 25-150 basis points. The rate hike comes three weeks after the third-quarter monetary policy review of the Reserve Bank of India (RBI), when the central bank increased the cash Reserve ratio by 75 basis points. In a rising rate scenario, where the credit growth is expected to improve in the coming quarters, the bank has decided to align its deposit rates with the market. HDFC Bank ADR rose 1.54% on Wednesday.
But, India's largest private sector bank by net profit ICICI Bank rose 1.13%, reversing early fall. The bank has increased interest rates on some term deposits with immediate effect. Interest rates on deposits maturing in 390 days and 590 days have been hiked by 25 basis points and 50 basis points respectively. Both deposits will now earn 6.75% interest.
The central bank said recently it will introduce from 1 April 2010 a new base rate to price credit more transparently, replacing the existing benchmark prime lending rate (BPLR). The Reserve Bank of India said the base rate will be the new reference rate for determining lending rates. According to draft guidelines, the RBI has proposed that the actual lending rate charged to borrowers would be the base rate plus borrower-specific charges including product-specific operating cost, credit-risk premium and tenure premium said.
For the banking sector, industry watchers expect relaxation in the lock-in period for fixed deposits - from five to three years - to qualify for tax benefits under Sec.80C. There might be an increase in the ceiling on foreign direct investment in the insurance sector from 26% to 49%. Expectations are also that the finance minister will allow banks to raise tax-free infrastructure funds.
Hathway Cable & Datacom settled at Rs 207.80, at a discount of 13.41% to the IPO price of Rs 240. The stock listed at Rs 246, a premium of 2.5% over the issue price of Rs 240
Cals Refineries clocked the highest volume of 1.16 crore shares. Emmbi Polyarns (82.07 lakh shares), Shree Ashtavinayak (79.17 crore shares), Syncom Healthcare (70.11 crore shares) and Hathway Cables (62.49 lakh shares) were the other volume toppers in that order.
D B Realty clocked the highest turnover of Rs 148.13 crore on BSE. Hathway Cables (Rs 129.85 crore), Mphasis (Rs 68.60 crore), Reliance Industries (Rs 67.31 crore) and Larsen & Toubro (Rs 65.99 crore) were the other turnover toppers in that order.
Market may remain volatile ahead of F&O expiry; inflation data eyed
The market may remain volatile ahead of the expiry of near-term February 2010 derivatives contracts today, 25 February 2010. The Economic Survey will be tabled in the parliament today. The recommendations of the 13th Finance Commission will also be tabled in the parliament today, just a day ahead of the Union Budget 2010-2011 on Friday, 26 February 2010. The government will unveil data on some wholesale price indices for the year through 13 February 2010 viz. the food price index, the primary articles index and the fuel price index at 12:00 IST today.
Finance Minister Pranab Mukherjee said on Tuesday the government will continue measures to tame inflation in the financial year ending March 2011. The Reserve Bank of India (RBI) governor D Subbarao said on Wednesday that inflation continued to be a dominant concern. Last week, he had said the central bank would stand by its end-March inflation forecast of 8.5% and said that RBI expects current inflation to moderate by July.
As far the Union Budget 2010-2011 is concerned, the government may announce increase in 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. The government's revenue will also get a boosts from sale of 3G auction and divestment. 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.
The fate of three important fiscal bills, which had been stalled by the Left parties, will be closely watched. These are the Pension Fund Regulatory and Development Authority (PFRDA) Bill, Insurance Bill and Banking Regulation (Amendment) Bill.
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.
As far as government expenditure is concerned, the thrust areas could be agriculture, water resources, power, roads & other infrastructure projects and social sector schemes.
Asian stocks were trading mixed on Thursday. The key benchmark indices in China and Hong Kong rose by between 0.77% to 1.06%. But, the key benchmark indices in Indonesia, Japan, South Korea, Singapore and Taiwan fell by between 0.07% to 0.73%.
US stocks closed higher on Wednesday after Federal Reserve Chairman Ben Bernanke reassured lawmakers interest rates will remain low, promising more cheap money to investors. Stocks had slipped in initial trade on disappointing new home sales data for January. The 11.2% drop in home sales was their worst monthly downturn since January 2009.
The Dow Jones rose 91.75 points or 0.89% to 10,374.16. The Nasdaq Composite index rose 22.46 points or 1.01% to 2235.9o and the S&P 500 gained 10.64 points or 0.97% to 1105.24.
In a prepared statement for his semi-annual testimony on monetary policy, Fed chairman Bernanke indicated that the FOMC continues to anticipate a moderate pace of economic recovery and that inflation is expected to remain subdued.
Closer home, the key benchmark indices ended a choppy trading session lower after Rail Minister Mamata Banerjee announced a populist rail budget for 2010-2011 during trading hours. Weak global equities also weighed on investor sentiment. The BSE 30-share Sensex fell 30.35 points or 0.19% to 16,255.97 on that day.
As per provisional figures on NSE, foreign funds bought shares worth Rs 485.54 crore and domestic funds sold shares worth Rs 154.67 crore on Wednesday.
Grey Market Premiums - Feb 25 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) |
| NTPC (FPO) | 201 | 3 to 4 | -- |
| ARSS Infrastructure Projects | 450 | 145 to 155 | -- |
| Hathway Cable & Data Comm. | 240.00 | Discount | -- |
| Texmo Pipes | 85 to 90 | 8 to 9 | -- |
| Man Infraconst. | 243 to 252 | 55 to 60 | -- |
| REC (FPO) | 203 | 18 to 20 | -- |
| United Bank of | 60 to 66 | 4 to 5 | 1800 to 1900 |
Market to open higher ahead of F&O Expiry
Headlines for the day
Pantaloon to merge home business - DNA Money
Thermax settles IP row with Purolite - DNA Money
SBI eyes big stake in Tata Motors Finance - Business Standard
Bajaj Holdgs consolidates stake in Bajaj Auto in Rs 180cr-deal - Business Standard
DoT sets new deadline for 3G auctions - Business Standard
Events for the day
Major corporate action
Hathway Datacom to be list today
Ex-date for Stock Split from Rs10/- to Re1/- of Haldyn Glass Gujarat Ltd.
Ex-date for Dividend of Escorts Ltd & MRF Ltd
Economic Survey to be announced today
Weekly Inflation to be announced today
F&O Expiry for the month of February
United Bank of India IPO closes today
Results today: Ranbaxy, Tata Power & Pfizer
Pre-market report
Global signals
The European stocks closed higher on Wednesday, with banks gaining after a statement from US Federal Reserve Chairman saying interest rates would remain low. FTSE 100 closed 0.69% lower at 5315.09.
US market closed higher on Wednesday after a move from Federal Reserve Chairman Ben Bernanke committed that interest rates to remain low. Dow Jones closed higher by 0.89%; Nasdaq closed higher by 1.01%.
In today's trade, all the Asian indices are trading in red zone, except Shanghai Composite and Hang Seng manage to stay in green. At the time of writing of this report SGX Nifty trades 15 points lower.
Indian markets
Indian markets are set to open higher on the back of positive signals that are coming from the global markets. As Railway Budget is over, Markets may remain cautious ahead of upcoming budget.
Among the local indices, the Nifty could test the 4900-4950 range on the up side, while on the down side it could find support at 4800 and 4750. While the Sensex is likely to get support at 15700 and may face resistance at 16700.
Indian ADR's
Among the Indian ADRs trading on the US bourses, all the ADRs closed in the positive territory, except MTNL and Tata Motors that closed lower. However Rediff gains the most by 2.5% followed by Infosysy that grew by 1.71%.
Commodity cues
In the commodity space, wherein the Crude oil prices recorded marginal gain, with the Nymex light crude oil for March series up by $0.11 to settle at $80.11 a barrel.
In the metals space, Comex Gold for April series declined by $6.40 to settle at $1096.80 to a troy ounce.
In the metals space, Comex Silver for March series up by $0.07 to settle at $15.98 to a troy ounce.
Daily trend of FII/MF investment in equities
On February 24, 2010, FIIs were the net buyers of the Indian Stocks in the tune of Rs743.90 crore (with the gross purchase of Rs2107.90 crore and gross sales of Rs1364.10 crore).
While the Domestic mutual funds, on February 22, 2010, were the net buyers of the stocks in the tune of Rs88.90 crore (with gross purchase of Rs488.30 crore and gross sales of Rs399.40 crore).
Daily News Roundup - Feb 25 2010
Wipro set up internal panel to investigate financial probe. (ET)
SBI to raise Rs200bn via right issue; needs over Rs500bn capital in the next five years. (ET)
ONGC is looking to enhance its presence in Africa and Latin America. (ET)
Wipro wins 10-year outsourcing deal from Punjab and Sind Bank. (BS)
SBI to buy significant stake in Tata Motor Finance says SBI chairman. (ET)
Bharti Airtel eyes US$7bn offshore loans to back its offer to buy Zain’s African cellular assets. (BS)
Government puts on hold the IPO of Satluj Jal Vidyut Nigam following poor response to the FPO of NTPC and REC. (ET)
Rahul Bajaj sells stake in Bajaj Electrical to Shekhar Bajaj. (BS)
ITC plans to foray the food market of UAE and Gulf Co-operation Council. (BS)
Mindtree to raise debt upto US$100mn. (BS)
Thermax has reached an out of court settlement with US based Purolite to end the legal dispute regarding polymer business in US. (BS)
Fidelity International sells 2% stake in Financial Technology owned MCX exchange to Passport India. (ET)
US media giant turner has acquired 85.68% stake in NDTV imagine. (BS)
Pantaloon to merge two units of its arm with itself. (BS)
Kotak Mahindra Bank to replace Grasim in Nifty50 from April 8th 2010. (ET)
Bayer drags Cipla to Supreme Court over anti-cancer drug patent. (FE)
Ashok Leyland has signed a multi-million dollar deal with Paramount Group
Texmaco to de-merge its Heavy Engineering and Steel foundry division; to transfer it to 100% subsidiary Texmaco Machines. (ET)
ATC acquires Essar’s tower business for Rs20bn. (FE)
DoT sets new deadline for 3G auctions; to start on April 9th 2010. (BS)
Decrease of 100rs per
Railways not to hike freight and passenger rates. (FE)
Railways push for PPP and seek private investment for world class station, auto hubs and high speed passenger train corridor. (FE)
Outstanding bank loans grew by Rs226bn in the fortnight ended February 12th 2010 reflecting a 9.9% yoy growth. (ET)
India Inc has announced a capacity expansion to the tune of Rs500bn over the next two-five years. (ET)
Tea export from India stood at 181.5mn kg in 2009 down 11.63mn kg over the previous year. (ET)
Indian power utility to import 48mn tons of coal in the next financial year. (ET)
Global trade dropped by 12% yoy last fiscal the biggest decline since the World War II. (ET)
Just batting eyelids!
"It would be useless for any player to attempt to explain successful batting."
The fact that master blaster Sachin Ton-dulkar has overshadowed Mamata Banerjee is proof enough of how disappointing Railway Budget is. Populism took precedence over pragmatism. One only hopes the Finance Minister doesn’t fall prey to the temptation.
Those batting around conventional wisdom of making some quick gain on railway-related stocks had to make a hasty retreat less their capital evaporates further.
Meanwhile, the Economic Survey will be unveiled today. Here again, we have seen that the Survey always talks of a spate of reforms urgently needed to accelerate India’s growth. But, the Budget hardly incorporates any recommendations made in the Survey. The key is to keep expectations low and one will not be disheartened.
As for the markets, they are set for another colorless show. The opening is likely to be sedate to say the least. There might be some more volatility today due to the F&O expiry. Global cues are inconclusive. US market ended higher on reassurances from Federal Reserve chairman Ben Bernanke that he will keep rates at record low for some time to come. Asian markets are mixed. European shares managed modest gains.
The market is in a predicament and a bit nervous ahead of Budget. The NSE Nifty has been stuck in a range of 4800-4930 of late and is unlikely to make a big move anytime soon- at least not today. A long overdue breakout in either direction could take place only post the Budget. At the same time, one has to take into account the emerging global situation before jumping the gun.
Shares of Hathway Cable Ltd. will list today.
Results Today: Advanta India, Goodricke Group, Oswal Spinning, Pfizer, Ranbaxy and Tata Power.
FIIs were net buyers in the cash segment on Wednesday at Rs4.85bn on a provisional basis while the local funds were net sellers of Rs1.54bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers of Rs7.47bn. On Tuesday, FIIs were net buyers of Rs7.44bn in the cash segment.
US stocks rose on Wednesday after Fed chairman Bernanke reiterated his pledge to keep interest rates low for the foreseeable future, reassuring investors worried about the outlook for the economy.
The Dow Jones Industrial Average gained 91 points, or 0.9%, to end at 10,374.16 while the S&P 500 index rose 11 points, or 1%, to 1,105.24. The Nasdaq Composite added 22 points, or 1%, to 2,235.90.
The dollar got hit and people started buying stocks. The weaker dollar lifted dollar-traded commodities and big corporations that do a lot of business overseas. Financial and technology shares were also on the rise.
US stocks managed to advance in the previous two weeks as investors focused on the positives in company and economic news, after a four-week drubbing.
The dollar tumbled versus the euro and the yen. The dollar's weakness gave a boost to dollar-traded commodities.
US light crude oil for April delivery rose $1.14 to settle at $80 a barrel on the New York Mercantile Exchange.
COMEX gold for April delivery fell $6 to settle at $1,097.20 per ounce.
Treasury prices fell, raising the yield on the 10-year note to 3.69% from 3.68% late on Tuesday.
US stocks posted slim gains in the early trades, lost some momentum after a worse-than-expected new home sales report and then turned higher again after the Fed chief began speaking. The gains continued throughout the session.
In his first day on Capitol Hill, Bernanke told the House Financial Services Committee that while the economic recovery is moving along, the job market remains weak. Against this backdrop, the Fed is unlikely to lift the fed funds rate, the key overnight bank lending rate, anytime soon.
In his statements yesterday, Bernanke implied that the Fed will at some point need to raise the fed funds rate.
Bernanke was testifying before the House and was scheduled to appear before the Senate on Thursday.
Investors are looking for more on how and when the Fed plans to unwind emergency programs that were put in place at the height of the financial crisis.
The Fed boosted the discount rate - the emergency bank lending rate - by a quarter-percentage point to 0.75%. It was a largely symbolic move in a rate that is rarely used by banks, but it was also the first rise in rates in over a year and the first move in any direction for rates in over two years.
Printing services firm R.R. Donnelley said it is buying Bowne & Co., a printer of corporate regulatory filings, in a deal worth $481 million. The $11.50 per share all-cash deal values the stock at more than 60% over Friday's closing prices.
Shares of Bowne & Co. rallied 60% in unusually-active New York Stock Exchange trading, while RR Donnelley shares gained 1%.
Shares of STEC plunged almost 24% in unusually active Nasdaq trading after the company issued a 2010 profit forecast late on Tuesday that disappointed investors. The computer data storage firm forecast revenue in a range that is more than 50% below analysts' forecasts and said it would report a quarterly loss, versus current forecasts for a profit. JPMorgan Chase led the list of analysts downgrading or cutting forecasts on the company.
Toyota faced Congressional scrutiny for the second-straight day, with company president Akio Toyoda speaking before the House Oversight Committee regarding the recall of millions of vehicles over safety issues. Toyoda apologized for the safety problems that led to deaths, injuries and the eventual recall of more than 8 million vehicles with brake problems.
The Japanese car giant said it is creating a system that will make it easier for customer complaints to be addressed and that it is forming a quality advisory group to seek input on safety and quality measures. On Tuesday, witnesses argued that the problems with the brakes could be tied to the vehicles' electronic throttle system, but Toyoda disputed that.
Transportation Secretary Ray LaHood testified earlier, refuting claims that the National Highway Traffic Safety Administration was a "lap dog" for the auto industry in dealing with safety claims. The NHTSA is part of the Transportation Department.
In the day's economic news, sales of new homes tumbled to the lowest level on record in January, surprising economists who expected a rise in sales. Sales fell 11% to a 309,000 annual unit rate from 348,000 in the previous month. Economists expected sales to rise to a 354,000 annual unit rate.
The Senate approved a $15 billion jobs creation bill that gives businesses tax breaks for hiring the unemployed and extends tax breaks that encourage companies to buy equipment.
European shares finished slightly higher, with an advance for HSBC Holdings offsetting weakness for Spain's Santander and BBVA, against a backdrop of uncertainty about the economy and labor unrest.
The pan-European Dow Jones Stoxx 600 index finished the day up 0.2% to 247.28. The index is nonetheless down 2.6% year-to-date, including losses on Tuesday.
Standard & Poor's meanwhile warned that a rating downgrade of one or possibly two notches is possible in a month for Greece. The Greek government is currently implementing spending cuts in order to reduce its budget deficit, a move that drew protesters to the streets of Athens on Wednesday. The Greek ASE Composite Index, down roughly 21% over three months, rose 0.2% to 1,926.81.
In Turkey, however, the ISE National-100 index declined 3.4% to 49,659.56, as investors worried about tensions between the Islamist government and the secular military after over 40 current and former military officers were arrested on Monday.
The German DAX index edged up 0.2% at 5,615.51 and the French CAC-40 index added 0.2% to 3,715.68. The UK FTSE 100 index gained 0.5% at 5,342.92.
The eagerly awaited Railway Budget turned out to be more populist one, with no change in passenger fares. More emphasis was laid on containing inflation and helping the common man on the street fight off spiraling prices. For corporates too, the Railway Budget was favourable as Railway Minister Mamata Banerjee left freight rates unchanged. But, the market hardly moved and the key indices were pretty much stagnant in an extremely insipid session. Weak global cues and jitters ahead of the Union Budget kept investors on tenterhooks. Railway stocks, which tend to rally in the run up to Railway Budget cooled off while new listings also failed to sparkle.
Railway stocks skid
Finally, the BSE Sensex marginally slipped 30 points to end at 16,256 it hit an intra-day high of 16,328 and intra-day low of 16,187. While the NSE Nifty slipped 11 points to end at 4,858.
Among the 30-components of Sensex, 19 ended in the negative terrain and 11 ended in the green. Sun Pharma, M&M, RCom, Tata Motors and Tata steel were among the top losers. On the other, major gainers were Maruti, NTPC, Tata Power, SBI and L&T.
Outside the frontline indices, the big losers in the broader market were Central Bank, KSK Energy, Gujarat NRE Coke and RCF. On the other hand, gainers included PFC, Divi’s Lab, REC, REI Agro and Balrampur Chini.
DB Realty, real estate major in Mumbai, started trading at Rs430 rupees on the BSE on Wednesday, against the issue price of Rs468 rupees a share. Although, towards the end the stock managed to stage a smart pull back, however was unable to end above its issue. Db realty ended at Rs456 against its issue price of Rs468 translating into a discount of 2.5%.
The company entered the capital market with Rs15bn IPO which was subscribed 2.95 times. The issue price band was Rs468- Rs486. The majority of reserved portion was subscribed at lower end of the price band by FIIs. Janus Capital picked up close to 43% of the allocated portion and India Capital Fund bought 5.14%.
The IPO garnered 5,52,19,024 bids in response to total issue size of 2,64,95,984 shares with 1,63,114 bids at cutoff price. The QIB portion was subscribed 3.29 times while non-institutional investors bid for 3.15 times the portion reserved for them.
The majority of the IPO proceeds i.e Rs13.88bn would be used to meet construction- and development-related expenses. The company focuses on residential, commercial, retail and other projects, such as mass housing and cluster re-development, and has 25 existing projects covering 60mn square feet.
SBI plans to raise up to US$4.3bn through a rights equity issue in 2010-11. The bank needs about half the amount to sustain growth over the next 5 years, the chairman was quoted as saying.
O.P. Bhatt said, the bank would need to raise US$8.6bn to feed demand for loans over 5 years in the fast-growing economy. "If we can raise half of it anytime during the next 12-18 months, it will be great," he added. The Rs100bn to Rs200bn rights offering will need the support of the government, which owns about 60% of the bank.
Shares of SBI edged higher by 0.2% to end at Rs1921. The scrip opened at Rs1906 it touched an intra-day high of Rs1930 and a low of Rs1900 and recorded volumes of over 0.81mn shares on NSE.
REpower, in which Suzlon Energy holds 90.71% won 51 MW order from Akuo Energy, France. The stock ended flat at Rs69. The scrip opened at Rs69 it touched an intra-day high of Rs70 and a low of Rs68.7 and recorded volumes of over 10.4mn shares on NSE.
Shares of KRBL shot up by over 9% to end at Rs25.80 after Mamata Banerjee in her Railway Budget announced a cut in freight on Food Grain by Rs100/ wagon. The scrip opened at Rs23 it touched an intra-day high of Rs26.80 and a low of Rs23 and recorded volumes of over 5.4mn shares on NSE.
Thermax announced that it has amicably resolved pending dispute and has settled trade secret litigation regarding its Ion Exchange Resin business in the US. Shares of Thermax slipped by 1.5% to end at Rs565. The scrip opened at Rs583 it touched an intra-day high of Rs589 and a low of Rs560 and recorded volumes of over 0.15mn shares on NSE.
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