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Tuesday, March 02, 2010
BSE Bulk Deals to Watch - March 2 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
2/3/2010 517356 ACI Infocom ROYAL COMPUTERS PVT LTD B 60000 29.63
2/3/2010 517356 ACI Infocom PRATYUSH KHAITAN B 121569 28.25
2/3/2010 517356 ACI Infocom SATYAVACHA FINANCIAL ADVISORY SERVICES PRIVATE LIMITED S 134520 29.40
2/3/2010 517356 ACI Infocom DIVYA ALOK GUPTA S 52218 27.22
2/3/2010 511706 Action Fin ESHA SECURITIES LTD S 61250 19.59
2/3/2010 532664 Amar Remedies SEEMA MITTAL B 132995 62.49
2/3/2010 532664 Amar Remedies DIMPLE OBEROI B 573277 63.06
2/3/2010 532664 Amar Remedies DIMPLE OBEROI S 257375 62.45
2/3/2010 531519 Ankush Finstock BHARAT MANUBHAI SHAH B 30600 2.48
2/3/2010 532995 Avon Corp VINOD AMRATLAL NAAI B 404124 7.18
2/3/2010 532995 Avon Corp BASMATI SECURITIES PRIVATE LIMITED S 448000 7.14
2/3/2010 532995 Avon Corp VINOD AMRATLAL NAAI S 359888 7.17
2/3/2010 531591 Bampsl Sec OMPARKASH GUPTA B 423784 1.42
2/3/2010 531591 Bampsl Sec KALPANA AGRAWAL B 1000000 1.42
2/3/2010 531591 Bampsl Sec PRAKASH CHAND GUPTA S 900000 1.42
2/3/2010 531591 Bampsl Sec SUNIL KUMAR GUPTA S 562725 1.44
2/3/2010 531591 Bampsl Sec ANJU GUPTA S 500000 1.43
2/3/2010 511607 Birla Shloka KUMAR PATKI KISHORE B 66185 56.16
2/3/2010 530495 Chhattisgarh Inds SARITA NUPUR VYPAAR PRIVATE LIMITED S 71925 13.41
2/3/2010 504351 Empower Inds JITS SHARE TRADING PVT LTD B 290569 40.95
2/3/2010 504351 Empower Inds CHANDRAKANT B SHAH S 150000 40.95
2/3/2010 504351 Empower Inds JIGNESH CHANDRAKANT SHAH S 100000 40.95
2/3/2010 514358 Everlon Syn PRACHI JITENDRA VAKHARIA B 95466 11.55
2/3/2010 514358 Everlon Syn NANIK DAYARAM HATHIRAMANI S 85000 11.55
2/3/2010 530337 Exelon Infra JMP SECURITIES PVT LTD B 127411 18.51
2/3/2010 530337 Exelon Infra ANGEL INFIN PRIVATE LIMITED S 24190 18.06
2/3/2010 530337 Exelon Infra JMP SECURITIES PVT LTD S 125016 18.71
2/3/2010 500655 Garware Poly BHARAT JAYANTILAL PATEL S 219000 42.55
2/3/2010 530743 GEI Indl MONEY MANAGERS B 90603 90.76
2/3/2010 530743 GEI Indl MONEY MANAGERS S 90603 88.82
2/3/2010 531439 Goldstone Tech PREM MOHANLAL PARIKH B 141000 35.50
2/3/2010 513059 GS Auto NILESH EKNATH BHOIR S 65398 53.40
2/3/2010 507960 Gujarat Hotels PRAGNESH JAGDISHBHAI PATEL B 39262 70.96
2/3/2010 507960 Gujarat Hotels PRAGNESH JAGDISHBHAI PATEL S 39262 71.05
2/3/2010 524314 Gujarat Terce KIRTI BALKRISHNA DOSHI B 25000 15.59
2/3/2010 524314 Gujarat Terce RAJESHKUMAR NARANBHAI PRAJAPATI S 50000 15.59
2/3/2010 500177 Hanil Era Tex VINCENT COMMERCIAL COMPANY LTD B 380000 5.25
2/3/2010 500177 Hanil Era Tex PINNACLE TRADES AND INVESTMENTS S 380000 5.25
2/3/2010 530117 HK Finechem MONEYBEE COMMODITIES PRIVATE LIMITED B 50000 23.70
2/3/2010 530117 HK Finechem DHIREN S.SHAH (HUF) S 50000 23.70
2/3/2010 523770 Integrated Dig VINCENT COMMERCIAL COMPANY LTD B 300000 3.75
2/3/2010 523770 Integrated Dig PINNACLE TRADES AND INVESTMENTS S 300000 3.75
2/3/2010 506520 Jayshree Chem BIKEWIN TRADING PRIVATE LIMITED B 30000 18.05
2/3/2010 524731 Jenburkt Pharma PRIYA CHANDRAKANT JALGAONKAR B 40005 50.24
2/3/2010 524731 Jenburkt Pharma PRIYA CHANDRAKANT JALGAONKAR S 40005 50.95
2/3/2010 530255 KAY Power KAUSHALYA GARG B 104851 16.56
2/3/2010 530255 KAY Power KAILASH CHAND GUPTA B 71279 16.85
2/3/2010 530255 KAY Power NAVAL KISHORE GUPTA S 150000 16.03
2/3/2010 530255 KAY Power BAMPSL SECURITIES LTD S 130000 16.42
2/3/2010 532686 Kernex Micro S M S HOLDINGS PVT LTD S 72102 130.21
2/3/2010 532986 Niraj Cement RAJARAM VISHWAS PATIL B 89346 47.13
2/3/2010 531496 Omkar Overseas FALGUNI BEN MAHAVIRBHAI GOHIL B 30000 60.20
2/3/2010 512097 Oregon Comm KRUPA SANJAY SONI B 12269 183.31
2/3/2010 512097 Oregon Comm SONI KRUPA SANJAY B 9907 183.93
2/3/2010 512097 Oregon Comm KRUPA SANJAY SONI B 23639 185.38
2/3/2010 512097 Oregon Comm PATEL PARESHBHAI LALJIBHAI HUF B 5000 177.00
2/3/2010 512097 Oregon Comm KRUPA SANJAY SONI B 6560 187.67
2/3/2010 512097 Oregon Comm SANJAY JETHALAL SONI B 5911 187.19
2/3/2010 512097 Oregon Comm KRUNAL GOPALDAS RANA B 5400 189.00
2/3/2010 512097 Oregon Comm NARESH CHAND JAIN B 7127 188.84
2/3/2010 512097 Oregon Comm MEHUL SHANTILAL SANCHETI B 5000 188.92
2/3/2010 512097 Oregon Comm VANDANA JINDAL B 5295 177.36
2/3/2010 512097 Oregon Comm PRADIPBHAI RAMBHAI PATEL B 25000 175.00
2/3/2010 512097 Oregon Comm KRUPA SANJAY SONI S 14559 181.58
2/3/2010 512097 Oregon Comm SONI KRUPA SANJAY S 8063 182.88
2/3/2010 512097 Oregon Comm KRUPA SANJAY SONI S 6005 176.33
2/3/2010 512097 Oregon Comm NARESH CHAND JAIN S 7127 188.48
2/3/2010 512097 Oregon Comm VANDANA JINDAL S 5295 177.37
2/3/2010 512097 Oregon Comm APPLE BROKING S 7500 181.95
2/3/2010 512097 Oregon Comm PATEL SHAILESH JIVANLAL S 6651 175.20
2/3/2010 590074 Ortin Lab SHARATH SANKA KUMAR S 23160 13.83
2/3/2010 531280 Pankaj Poly GARNET INTERNATIONAL LTD B 50950 16.90
2/3/2010 531280 Pankaj Poly INDIRA GAGGAR S 50000 16.90
2/3/2010 502587 Rama Pulp PREMIUM HOSPITALITY SERVICES PRIVATE LIMITED B 48000 30.45
2/3/2010 502587 Rama Pulp PREMIUM HOSPITALITY SERVICES PRIVATE LIMITED S 48345 29.24
2/3/2010 502587 Rama Pulp GAJRIA JAYNA PRECISION INDVSTRIES PRIVATE LIMITED S 48000 30.45
2/3/2010 526723 RDB Inds PARAMDHAM MERCANTILE PVT. LTD S 168000 107.95
2/3/2010 530271 Rich Capital ANKIT JAIN B 50000 78.22
2/3/2010 530271 Rich Capital CITYON INFRASTRUCTURE PRIVATE LIMITED S 44850 78.25
2/3/2010 500368 Ruchi Soya V S NET LTD B 1500000 101.80
2/3/2010 500368 Ruchi Soya BRIGHT RICH SECURITIES LTD S 1996965 101.77
2/3/2010 532793 Shree Ashtavina KANUDIA CAPITAL AND MANAGEMENT SERVICES PVT LTD B 1000001 13.53
2/3/2010 532793 Shree Ashtavina RICH APPARELS PRO MANOJ MEHTA B 800000 13.73
2/3/2010 532793 Shree Ashtavina COMFORT INTECH LIMITED B 804293 13.86
2/3/2010 532793 Shree Ashtavina DKG SECURITIES PVT. LTD. B 1650000 13.94
2/3/2010 532793 Shree Ashtavina LAKSHMI MEHROTRA B 4000000 13.93
2/3/2010 532793 Shree Ashtavina TRANS FINANCIAL RESOURCES LIMITED B 2062236 13.65
2/3/2010 532793 Shree Ashtavina RICH APPARELS PRO MANOJ MEHTA S 800000 13.76
2/3/2010 532793 Shree Ashtavina MULTIPLEX CAPITAL LTD. S 1585001 13.86
2/3/2010 532793 Shree Ashtavina DKG SECURITIES PVT. LTD. S 1000000 13.44
2/3/2010 532793 Shree Ashtavina RELIGARE FINVEST LTD S 1087270 13.68
2/3/2010 532793 Shree Ashtavina TRANS FINANCIAL RESOURCES LIMITED S 2062236 13.42
2/3/2010 526133 Supertex Inds SUPER INFINCON PVT LTD S 528975 3.35
2/3/2010 533157 SYNCOM HEAL GENUINE STOCK BROKERS PVT. LTD. B 123804 99.52
2/3/2010 533157 SYNCOM HEAL SMART EQUITY BROKERS PRIVATE LIMITED B 109211 99.67
2/3/2010 533157 SYNCOM HEAL TRANSGLOBAL SECURITIES LTD. B 175443 98.85
2/3/2010 533157 SYNCOM HEAL SANJEEV SINGHAL B 220134 98.98
2/3/2010 533157 SYNCOM HEAL OPG SECURITIES P LTD B 152942 98.93
2/3/2010 533157 SYNCOM HEAL GENUINE STOCK BROKERS PVT. LTD. S 123804 99.39
2/3/2010 533157 SYNCOM HEAL SMART EQUITY BROKERS PRIVATE LIMITED S 109211 99.60
2/3/2010 533157 SYNCOM HEAL TRANSGLOBAL SECURITIES LTD. S 175443 98.75
2/3/2010 533157 SYNCOM HEAL SANJEEV SINGHAL S 220134 98.92
2/3/2010 533157 SYNCOM HEAL OPG SECURITIES P LTD S 152942 98.86
2/3/2010 532691 Tulip Telecom CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED B 567721 936.55
2/3/2010 532691 Tulip Telecom SWISS FINANCE CORPORATION (MAURITIUS) LTD S 567721 936.55
2/3/2010 531249 Well Pack Papers SHOBHNABEN R PARMAR B 33464 461.43
2/3/2010 531249 Well Pack Papers RAMESHBHAI V PARMAR B 44502 461.70
2/3/2010 531249 Well Pack Papers AMAR PREMCHAND WALMIKI B 40000 462.07
2/3/2010 531249 Well Pack Papers MAYANK N GANDHI S 29805 460.77
* B - Buy, S - Sell
NSE Bulk Deals to Watch - March 2 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
02-MAR-2010,AMAR,Amar Remedies Limited,OBEROI DIMPLE,BUY,245223,61.49,-
02-MAR-2010,EMMBI,Emmbi Polyarns Ltd,A K G SECURITIES AND CONSULTANCY LTD.,BUY,97210,26.63,-
02-MAR-2010,EMMBI,Emmbi Polyarns Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,171469,26.80,-
02-MAR-2010,LIBERTSHOE,Liberty Shoes Ltd,CNB FINWIZ LIMITED,BUY,132593,106.68,-
02-MAR-2010,LIBERTSHOE,Liberty Shoes Ltd,MODEX INTERNATIONAL SECURITIES LTD.,BUY,88821,104.76,-
02-MAR-2010,LIBERTSHOE,Liberty Shoes Ltd,OM INVESTMENTS,BUY,166754,105.13,-
02-MAR-2010,RESURGERE,Resurgere Mines & Mineral,SUBHASH ATMARAM SHARMA,BUY,148821,90.49,-
02-MAR-2010,RUCHISOYA,Ruchi Soya Inds Ltd.,V S NET LTD,BUY,2000000,101.90,-
02-MAR-2010,SREINTFIN,SREI Infrastructure Finan,JHUNJHUNWALA REKHA,BUY,625000,69.31,-
02-MAR-2010,SYNCOM,Syncom Healthcare Ltd,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD.,BUY,138075,100.08,-
02-MAR-2010,SYNCOM,Syncom Healthcare Ltd,BHARGAVI ATUL JAIN,BUY,137838,98.79,-
02-MAR-2010,SYNCOM,Syncom Healthcare Ltd,CPR CAPITAL SERVICES LTD.,BUY,94842,99.16,-
02-MAR-2010,SYNCOM,Syncom Healthcare Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,145530,99.22,-
02-MAR-2010,SYNCOM,Syncom Healthcare Ltd,MANISH VRAJLAL SARVAIYA,BUY,108464,98.48,-
02-MAR-2010,SYNCOM,Syncom Healthcare Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,189698,98.41,-
02-MAR-2010,TRICOM,Tricom India Limited,DEUTSCHE INTL TRUST CORPN (C.I.) LTD A/C DBMGOF (MAU) LTD,BUY,348062,13.60,-
02-MAR-2010,AMAR,Amar Remedies Limited,OBEROI DIMPLE,SELL,245223,62.21,-
02-MAR-2010,EMMBI,Emmbi Polyarns Ltd,A K G SECURITIES AND CONSULTANCY LTD.,SELL,97210,26.61,-
02-MAR-2010,EMMBI,Emmbi Polyarns Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,171469,26.85,-
02-MAR-2010,EVERONN,Everonn Education Limited,NETEQUITY VENTURES PRIVATE LIMITED,SELL,80000,398.08,-
02-MAR-2010,LIBERTSHOE,Liberty Shoes Ltd,CNB FINWIZ LIMITED,SELL,132593,106.82,-
02-MAR-2010,LIBERTSHOE,Liberty Shoes Ltd,MODEX INTERNATIONAL SECURITIES LTD.,SELL,93298,104.70,-
02-MAR-2010,LIBERTSHOE,Liberty Shoes Ltd,OM INVESTMENTS,SELL,166754,105.29,-
02-MAR-2010,RESURGERE,Resurgere Mines & Mineral,SATYABHAMA MURARILAL SHARMA,SELL,145132,90.45,-
02-MAR-2010,RUCHISOYA,Ruchi Soya Inds Ltd.,BRIGHT RICH SECURITIES LTD,SELL,2000000,101.90,-
02-MAR-2010,SYNCOM,Syncom Healthcare Ltd,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD.,SELL,138075,100.08,-
02-MAR-2010,SYNCOM,Syncom Healthcare Ltd,BHARGAVI ATUL JAIN,SELL,137838,98.47,-
02-MAR-2010,SYNCOM,Syncom Healthcare Ltd,CPR CAPITAL SERVICES LTD.,SELL,94842,99.18,-
02-MAR-2010,SYNCOM,Syncom Healthcare Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,145530,99.40,-
02-MAR-2010,SYNCOM,Syncom Healthcare Ltd,MANISH VRAJLAL SARVAIYA,SELL,108464,98.64,-
02-MAR-2010,SYNCOM,Syncom Healthcare Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,189698,98.57,-
02-MAR-2010,TRICOM,Tricom India Limited,LISTED INVESTMENTS LIMITED,SELL,348062,13.60,-
Sugar stock turns sour
A day when Sensex closed higher by over 2% on the back of market friendly budget and record auto sales number posted by Auto firms doubled with the robust factory output number stood at 20 months high. However, most of sugar stock took a heavy beating on a news that government proposal to prohibit industrial use of home-grown sugar.
Dhampur Sugar (closed 6.49% down) slips over 8% in intra-day trade to hits the low of Rs90, Shree Renuka Sugar (closed 2.88% down) also declined about 4% in intra-day to hits the day’s low of Rs160.30 and Balrampur Chini (closed 1.80% down) slides over 4.5% in intra-day to touch the day’s low of Rs100.55.
As per the news report:
Private and cooperative sugar millers have raised objections against the Centre’s proposal to prohibit industrial use of domestically produced sugar. Millers estimate that industrial users, comprising manufacturers of confectionery, biscuits and beverages, may have to import 4.5 million tonnes (mt) of sugar
The government such move would adversely affect sugar prices, which are expected to hit rock-bottom. At present, the commodity is priced at Rs3,265 per quintal. Millers also feel the government move would also adversely impact the financial health of the domestic sugar industry.
Nearly 60 per cent of India’s total sugar consumption of 23 mt is used for industrial purposes. The Indian white plantation sugar having 100-150 ICUMSA (International Commission for Uniform Methods of Sugar Analysis) is acceptable for the industrial use and has been a dominant buyer of domestic sugar.
Market extends post-Budget gains in broad-based rally
The key benchmark indices surged for the second straight day after finance minister Pranab Mukherjee offered to progressively cut fiscal deficit over the next three fiscal years, changed personal tax rates which will lift disposable incomes in the hand of individuals and reduced surcharge on corporate tax for domestic companies to 7.5% from 10% in Union Budget 2010-2011 late last week.
Data showing a surge in manufacturing activity in the month of February and rise in exports for the third consecutive month in January also lifted sentiment. The BSE 30-share Sensex rose 343.01 points or 2.09%. The S&P CNX Nifty crossed the psychological 5,000 mark. The Sensex had risen 175.35 points or 1.08% to 16,429.55 on the Budget day on Friday 26 February 2010.
The market surged in early trade tracking overnight gains in global stocks when the Indian market was closed for the Holi festival. The market pared gains in morning trade. The market surged in mid-morning trade with the Sensex hitting a fresh intraday high. The market once again pared gains in early afternoon trade. The market surged again in afternoon trade. The Sensex struck a fresh intraday high in mid-afternoon trade. The market extended gains in late trade.
India VIX, a volatility index based on the S&P CNX Nifty index option prices, tumbled for the second day in a row. The index declined 9.95% to 21.63. The index had tanked 18.71% to Friday, 26 February 2010, the day when the Budget was announced. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days. Typically, volatility surges ahead of a major event such as the Budget. It falls after the event.
Index heavyweight Reliance Industries rose on reports of a possible acquisition of Canada's Value Creation. Auto stocks extended Friday's sharp gains on robust vehicle sales in the month of February 2010 over February 2009. India's largest commercial vehicle maker by sales Tata Motors rose more than 12% after the company reported strong vehicle sales in the month just gone by. Banking, metal stocks also rose. Barring the realty index, all the other sectoral on indices on BSE were in green
Prime Minister Manmohan Singh on Monday ruled out rolling back a price hike in retail fuel prices despite pressure from his main allies, saying populist policies would hurt the economy in the long-term. Petrol prices rose about 6% and diesel prices by 7.75% after the government increased excise duties and import duties on the fuels in Union Budget 2010-2011, which stressed fiscal prudence to cut a wide deficit.
The Finance Minister in his budget speech on Friday, 26 February 2010 said the government aims to introduce the Goods and Services Tax (GST) and implement the direct tax code from 1 April 2011. The peak rate of excise duties has been raised to 10% from 8% as a first step towards the winding down of fiscal stimulus measures. However, the service tax was retained at 10%. The government has estimated Rs 40000 crore from disinvestment for FY 2010-11. It has estimated Rs 35000 crore from sale of third generation telecom auctions.
The finance minister has raised personal income tax slabs which will result in increase in disposable incomes which in turn may boost consumption. The minimum alternate tax (MAT) has been raised to 18% from 15% of book profits. The fiscal deficit is pegged at 5.5% of GDP for 2010-2011, lower than an estimated 6.8% for the current fiscal year. The planned expenditure will rise 15% in 2010-2011. The increase in non-plan expenditure is only 6% for 2010-2011. The finance minister said the government also aimed to reduce the deficit further to 4.8% of GDP in the year starting 1 April 2011, and to 4.1% in the year from 1 April 2012. He said there is a need to review stimulus and move towards fiscal consolidation and review public spending.
A thrust on the infrastructure sector augurs well from a long-term growth perspective. The Finance Minister has provided Rs 1.73 lakh crore for infrastructure development in 2010-2011, which accounts for over 46% of the total plan expenditure for the year.
The stock market has applauded the Union Budget 2010-2011 due to its thrust on infrastructure development, government's pledge to reduce fiscal deficit over the next three years, a smaller-than-expected 2% hike in excise duties, and reduction in taxes for individuals which will boost disposable income. The Finance Minister has assumed a modest GDP of about 8% and inflation of about 4.5% for 2010-2011.
The Finance Minister plans to tighten his belt on non-plan expenditure that includes heads like subsidies and administrative costs etc. He has forecast a small 6% growth in non-plan expenditure. The budget projects an 11% reduction in the government's subsidy bill for 2010-11, driven essentially by a massive drop in petroleum subsidies and some decline in fertiliser subsidies.
However, any sharp surge in crude oil prices will result in higher oil subsidies. The Finance Minister has provided only Rs 3108 crore towards oil subsidy for 2010-2011 and also indicated that he will not issue bonds this year as well. This means that he is either assuming that crude oil prices are going to remain very low or he is making an implicit assumption that the Kirit Parikh Committee report in some form will be implemented. It may be recalled that the Kirit Parikh Committee has suggested freeing of auto fuel prices and raising kerosene prices by Rs 6 a litre and cooking gas Rs 100 per 14.2-kg cylinder.
As per reports, the finance ministry has budgeted only Rs 14,954 crore cash compensation for the three state-owned oil marketing firms (PSU OMCs) for 2009-10 against their demand of Rs 31,000 crore for selling cooking fuel below the cost. Additionally, the three PSU OMCs will make a revenue loss of around Rs 14,000 crore on retail sale of petrol and diesel in the current financial year, which will be fully met by the upstream companies - ONGC, OIL India and GAIL India.
Earlier, PSU OMCs were given oil bonds to make up their revenue losses, but on Friday, the Finance Minister made it clear that the government was against continued fuel subsidies and would not give oil bonds.
Though the Finance Minister said that the government will implement the Direct Tax Code from 1 April 2011, there is no clarity on actual changes in direct taxes from 1 April 2011. Further, there is also uncertainty with regards to rates under the new GST. One really does not know what the Central GST rate will be in April 2011. States also will charge State GST on the same base as that of Central GST. So the States will have a big say in fixing the rate. It has also to be a revenue neutral rate (RNR) which therefore will involve a lot of arithmetical exercise involving all the taxes which will be subsumed in the GST. It is most uncertain what it will be.
Global rating agency Moody's Investor's Service said on Tuesday, 2 March 2010, the latest Budget represents a strong intention to renew fiscal discipline, which coupled with a fuel price increase announced last week are positive for its sovereign rating on India. Moody's rates India's local currency sovereign rating as Ba2 and assigned a positive outlook in December 2009.
Going ahead, the key triggers for the stock market are structural reforms such as decontrol of petrol and diesel prices, targeting of food subsidies, and financial sector reforms such as increase in foreign direct investment in insurance sector.
Meanwhile, the latest hike in petrol and diesel prices will further increase headline inflation. Higher inflation will put further pressure on interest rates which in turn may impact corporate and consumer confidence. However, Prime Minister Manmohan Singh on Monday tried to allay fears of fuel price hike stoking inflation. He said the direct effect on the Wholesale Price Index (WPI) will be no more than 0.4%.
Food prices will be keenly watched in coming weeks for the second and third round impacts of the fuel price rise. Market men see a 25 basis points hike in the repo and reverse repo rates each by the RBI at the April 2010 policy review.
The government has set its gross market borrowing target for 2010/11 at a record Rs 4.57 lakh crore, up by 1.3% percent from the previous year, sending bond yields into a tizzy and sparking fresh worries on liquidity.
The economy is likely to do better in the quarter to March than the three preceding quarters, Finance Secretary Ashok Chawla said on Friday. The economy grew a slower than expected 6% annually in the December quarter, data showed on Friday.
The manufacturing industry in February 2010 grew at its fastest pace in 20 months, expanding for the third month thanks to expanding output and new orders, a survey showed. The HSBC Markit Purchasing Managers' Index , based on a survey of 500 companies, rose to 58.5 in February, its strongest reading since June 2008, from 57.7 in January. A reading above 50 means activity is expanding.
Exports rose an annual 11.5% in January 2010 to $14.3 billion, the third consecutive rise after 13 straight months of decline, the government said on Tuesday. Imports rose 35.5% from a year earlier to $24.7 billion. The trade deficit stood at $10.4 billion in January compared with $5.4 billion a year earlier. Exports for April-January, the first 10 months of the 2009/10 fiscal year, were down 17.8% at $131.9 billion from the same period in the previous year.
European stock edged higher on Tuesday, tracking firmer US and Asian markets. The key benchmark indices in France, Germany and UK rose by between 0.35% to 0.46%.
Asian shares traded mostly higher Tuesday, with technology stocks gaining ground around the region, while Hong Kong lost ground after disappointing earnings results from HSBC. Chinese stocks were lower, with trade cautious ahead of China's annual parliament sessions starting Friday. The Australian dollar traded near a one-week high after the central bank raised its cash rate another quarter of a percentage point to 4%, in a move expected by most economists.
The key benchmark indices in Indonesia, South Korea, Japan and Taiwan rose by between 0.26% to 1.29%. But the key benchmark indices in China Singapore and Hong Kong fell by between 0.07% to 0.72%.
The pace of Chinese manufacturing eased last month, suggesting that slower government spending and steps to curb credit growth could be taking some of the steam out of the world's third-largest economy. The Purchasing Managers' Index (PMI) derived from a survey conducted by the China Federation of Logistics and Purchasing for the National Bureau of Statistics (NBS) fell to 52 in February from 55.8 in January.
Trading in US index futures indicated that the Dow could rise 20 points at the opening bell on Tuesday, 2 March 2010.
US markets kicked off March with gains on Monday, 1 March 2010 led by technology stocks after an encouraging report on chip sales and strong outlook from Sandisk. Some M&A activity too gave the broader market a boost. The Dow Jones Industrial Average gained 78.53 points, or 0.8%, to close at 10,403.79, led by Intel. The tech-heavy Nasdaq jumped 1.6%, while the S&P 500 added 1%.
In economic data, the ISM reported that the manufacturing sector continued to grow in February 2010, even though it fell to 56.5 from 58.4 in January, as the gauge remained over 50. On the consumer front, personal spending rose 0.5% in January, even though income gained only 0.1%. Spending on both durable and nondurable goods was strong.
In its second reading of fourth-quarter gross domestic product of US, the Commerce Department said the economy grew at a 5.9% annual rate, rather than the 5.7% pace it estimated last month.
Governments need to coordinate exit strategies but the pace at which they unwind stimulus measures depends on their individual circumstances, senior officials said on Saturday on the sidelines of a G20 deputy finance ministers' meeting.
Figures on Friday 26 February 2010 showed the British economy grew faster than previously estimated in the last three months of 2009, the quarter in which it emerged from the longest recession on record, but finance minister Alistair Darling reiterated his warning that support for the economy needed to remain in place.
Closer home, the BSE 30-share Sensex rose 343.01 points or 2.09% to 16,772.56. The barometer index rose 378.94 points at the day's high of 16,808.49 in late trade. The Sensex rose 8.90 points at the day's low of 16,438.45 in early trade.
The 50-unit Nifty rose 94.70 points or 1.92% to 5,017. Nifty March 2010 futures were at 5,034, at a premium of 17 points over spot closing of 5,017. Turnover in NSE's futures & options (F&O) segment was Rs 70,716.46 crore, sharply lower than Rs 1,16,981.30 crore on Friday, 26 February 2010.
The market breadth, indicating the overall health of the market, was strong. On BSE, 2042 shares rose as compared with 770 that declined. A total of 69 shares remained unchanged.
From the 30 share Sensex pack, 25 rose while rest declined.
The BSE Mid-Cap index rose 2.2% and the BSE Small-Cap index rose 2.33%. Both the indices outperformed Sensex.
All the sectoral indices on BSE rose. BSE Auto index (up 4.29%), Metal index (up 3.92%), Bankex (up 2.29%), and FMCG index (up 2.13%), outperformed the Sensex. BSE Oil & Gas index (up 0.11%), Realty index (up 0.31%), BSE PSU index (up 0.58%), Healthcare index (up 1.04%), Consumer Durables index (up 1.34%), BSE IT index (up 1.35%), Power index (up 1.81%) and Capital Goods index (up 1.91%), underperformed the Sensex.
BSE clocked a turnover of Rs 4179 crore, lower than Rs 5384.54 crore on Friday, 26 February 2010.
Index heavyweight Reliance Industries (RIL) rose 0.57%, extending Friday's 1.42% gains. RIL is reportedly on the verge of losing its bid for bankrupt petrochemical company LyondellBasell, as it baulks at rising valuation due to the recovering global economy, but that may help it focus on the possible acquisition of Canada's Value Creation.
RIL's bid for LyondellBasell, which it had raised 21% to about $14.5 billion from the initial $12 billion in November, may not be acceptable to creditors who are leaning towards the revival plan proposed by the current management, reports suggest.
FMCG stocks rose after a strong push for the rural sector in the Budget. Britannia Industries, ITC, United Spirits and Marico rose by between 0.78% to 4.27%.
Construction firms gained after the finance minister allocated Rs 1.73 lakh crore for infrastructure development in FY 2010-2011. Era Infra Engineering, Hindustan Construction Company, Larsen & Toubro, Gammon India, Punj Lloyd and Jaiprakash Associates rose by between 0.8% to 3.73%.
IT stocks rose on strong US economic data. US is the biggest export market for the Indian IT companies. Tata Consultancy Services, Wipro, Infosys rose by between 0.28% to 3.34%.
Shares of pharmaceutical firms rose after finance minister Pranab Mukerjee increased the weighted deductions for in house research and development from 150% to 200%. Wockhardt, Sun Pharmaceuticals Industries, Jubilant Organosys, Glenmark Pharma, Venus Remedies, Piramal Healthcare, Biocon and Suven Life Sciences rose by between 0.25% to 5.55%.
Auto stocks extended Friday's sharp gains as the government hiked the excise duty by 2% to 10% from 8% earlier. This came as a relief as the industry was fearing a 4% hike. A thrust on infrastructure and higher rural spending also augur well for the auto sector.
Ashok Leyland and Hero Honda Motor rose 4.72% to 1.42% respectively.
India's largest car maker by sales Maruti Suzuki India rose 1.78%, extending Friday's 4.46% gains as total vehicle sales rose 22% to 96,650 units in February 2010 over February 2009. The company has raised vehicle prices by Rs 3,000-Rs 13,000 following increase in excise duty in the Budget
India's largest tractor maker by sales Mahindra & Mahindra jumped 4.65%, after total vehicle sales surged 39.51% to 27,894 units in February 2010 over February 2009.
India's largest commercial vehicle maker by sales Tata Motors rose 12.1% as total vehicle sales rose 58.46% to 69,427 units in February 2010 over February 2009.
Bajaj Auto gained 1.73%, after total vehicle sales surged 75% to 2.68 lakh units in February 2010 over February 2009.
TVS Motor Company jumped 9.52%, after the company's total two wheeler sales rose 31% to 1,40,544 units in February 2010 over February 2009.
Another minor positive for auto companies was higher slabs for personal income tax that would leave more finance in hands of individuals.
Banking stocks gained after the finance minister said RBI is considering giving some additional banking licenses to private sector players. ICICI Bank, State Bank of India and HDFC Bank rose by between 0.64% to 2.94%.
Shares of state-run bank got a boost from the Finance Minister's proposal to provide Rs 16500 crore for recapitalisation to enable them to maintain minimum capital adequacy at 8% in tier I capital by 31 March 2011.
Metal stocks rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 1.76% on Monday, 2 March 2010. Tata Steel, Steel Authority of India, Hindalco Industries, National Aluminum Company, Sterlite Industries rose by between 1.15% to 6.18%.
The government's proposal to introduce a competitive bidding process for allocating coal blocks for captive mining would ensure greater transparency and increased participation in production from these blocks. Coal is one of the key raw materials for the metal producers. The FM has also proposed to take steps to set up a "Coal Regulatory Authority" to create a level playing field in the coal sector. This would facilitate resolution of issues like economic pricing of coal and benchmarking of standards of performance.
India's largest power equipment maker by sales Bharat Heavy Electricals rose 3.15% after the company secured orders aggregating Rs 5778 crore to set up two coal-based power plants in Maharashtra.
Shares non-banking financial firms spurted after finance minister said the central bank is considering granting banking licenses to non-banking financial companies if they meet the criteria. Shriram Transport Finance Company, Bajaj Auto Finance, IDFC, IFCI and Reliance Capital rose by between 0.6% to 4.58%.
Realty shares fell as construction services have now been brought under the ambit of the service tax in an unexpected move that would raise cost of apartments that are still under construction. Indiabulls Real Estate, DLF, HDIL, Omaxe, Parsvnath Developers fell by between 0.19% to 1.65%.
As per the Budget proposal, the finance ministry has suggested that construction would be deemed to be a taxable service if the building or complex is still under construction and approval from the concerned regulatory authority which in most cases is the resident municipal authority, hasn't yet been granted.
On the positive side, the Finance Minister allowed pending projects to be completed within a period of five years instead of four years for claiming a deduction on profits. The norms for built-up area of shops and other commercial establishments in housing projects is also proposed to be relaxed to enable basic facilities for their residents.
PSU OMCs fell even as petrol prices rose about 6% and diesel prices by 7.75%. The Finance Minister has provided only Rs 3108 crore towards oil subsidy for 2010-2011 and also indicated that he will not issue bonds this year as well. BPCL, HPCL and Indian Oil Corporation fell by between 1.87% to 3.75%. Rise in fuel price will help oil marketing companies cut underrecoveries on domestic sale of petrol, diesel, kerosene and LPG at government controlled prices.
Cement stocks rose as cement companies across all capacities have reportedly hiked prices in the range of Rs 10-12 a bag, to offset the twin effects of the excise duty hike and the rise in diesel rates. ACC, Ambuja Cements, Ultratech Cements and Birla Corporation of India rose by between 0.75% to 4.3%.
Shri Ashtavinayak Cibe Vision clocked the highest volume of 2.31 crore shares on BSE. Cals Refineries (2.02 crore shares), Unitech (0.96 crore shares), IFCI (0.7 crore shares) and SpiceJet (0.66 crore shares) were the other volume toppers in that order.
Tata Motors clocked the highest turnover of Rs 239.87 crore on BSE. Tata Steel (Rs 125.15 crore), DLF (Rs 102.69 crore), Reliance Capital (Rs 100.62 crore) and HDIL (Rs 94.08 crore) were the other turnover toppers in that order
Markets may open firm; Budget clarifies doubts
Headlines for the day
3G players kept out of tax break under Sec 80IA - Business Line
GDP growth seen at a slower 6% in Q3 - DNA Money
Prudential snaps up AIG's Asian unit for $35.5 bn - Business Standard
Hindustan Dorr-Oliver acquires UK company - Business Standard
MphasiS scouting for firm to boost ITO biz - Business Standard
Events for the day
Major corporate action
Ex-date for Rights issue of Intellivate Capital.
Pre-market report
Global signals
The European stocks closed higher on Monday, as commodities like miners and oils lift the European shares. FTSE 100 closed 0.96% higher at 5405.94.
On Monday, US stocks closed higher, boosted by AIG's record-setting deal to sell a major Asian unit and combined with SanDisk Corp raised its revenue forecast. Dow Jones closed higher by 0.76%; Nasdaq closed marginally higher by 1.58%.
In today's trade, Asian indices showing the mixed trend, as indices like Shanghai Composite, Hang Seng and Nikkei are trading in negative territory, while indices like Jakarta Composite, Straits Times and Kospi are trading in positive territory. At the time of writing of this report SGX Nifty trades 63.50 points higher.
Indian markets
Indian market may open higher on the back of positive global cues. Markets may remain volatile as budget related uncertainties have passed with no negative effects.
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 15600 and may face resistance at 16800.
Indian ADR's
Among the Indian ADRs trading on the US bourses, all the ADRs closed green, except Rediff that slide the most by 2.89%. Wipro that gains the most by 3.47% followed by Tata Motors that rises by 3.21%.
Commodity cues
In the commodity space, wherein the Crude oil prices recorded marginal loss, with the Nymex light crude oil for April series down by $0.03 to settle at $78.67 a barrel.
In the metals space, Comex Gold for April series declined by $0.60 to settle at $1118.30 to a troy ounce.
In the metals space, Comex Silver for May series declined by $0.06 to settle at $16.46 to a troy ounce.
Daily trend of FII/MF investment in equities
On February 26, 2010, FIIs were the net sellers of the Indian Stocks in the tune of Rs243.70 crore (with the gross purchase of Rs2402.10 crore and gross sales of Rs2645.80 crore).
While the Domestic mutual funds, on February 25, 2010, were the net buyers of the stocks in the tune of Rs377.60 crore (with gross purchase of Rs1114.90 crore and gross sales of Rs737.30 crore).
Grey Market Premium - March 2 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) | K (Rs. 1 Lac Application) |
| NTPC (FPO) | 201 | 2 to 3 | -- |
| ARSS Infrastructure Projects | 450 | 195 to 200 | -- |
| Texmo Pipes | 90 | 14 to 15 | -- |
| Man Infraconst. | 243 to 252 | 52 to 55 | -- |
| REC (FPO) | 203 | 30 to 35 | -- |
| United Bank of | 60 to 66 | 7.50 to 8 | -- |
Market may extend Friday's gains as investors sight budget may help consumption led growth
The market may extend Friday (26 February 2010)'s gains as finance minister Prananb Mukherjee in his budget presentation on Friday offered to progressively cuts its budget deficit over the next three fiscal years, changed personal tax rates which will lift disposable incomes in the hand of individuals and a reduced surcharge on corporate tax for domestic companies to 7.5% from 10%. Market had remained closed on Monday 1 March 2010 on account of Holi festival. Asian stocks were trading mixed.
The Finance Minister in his budget speech on Friday, 26 February 2010 said the government aims to introduce the Goods and Services Tax (GST) and implement the direct tax code from 1 April 2011 The peak rate of excise duties has been raised to 10% from 8% as a first step towards the winding down of fiscal stimulus measures. However, the service tax was retained at 10%. The government has estimated Rs 40000 crore from disinvestment for FY 2010-11. It has estimated Rs 35000 crore from sale of third generation telecom auctions.
The finance minister has raised personal income tax slabs which will result in increase in disposable incomes which in turn may boost consumption. The minimum alternate tax (MAT) has been raised to 18% from 15% of book profits. The fiscal deficit is pegged at 5.5% of GDP for 2010-2011, lower than an estimated 6.8% for the current fiscal year. The planned expenditure will rise 15% in 2010-2011. The increase in non-planned expenditure is only 6% for 2010-2011. The finance minister said the government also aimed to reduce the deficit further to 4.8% of GDP in the year starting 1 April 2011, and to 4.1% in the year from 1 April 2012. He said there is a need to review stimulus and move towards fiscal consolidation and review public spending.
A thrust on the infrastructure sector also augurs well from a long-term growth perspective. The Finance Minister has provided Rs 1.73 lakh crore for infrastructure development in 2010-2011, which accounts for over 46% of the total plan expenditure for the year.
The FM said the Indian economy is in a much better position than a year ago, though challenges remain. He added uncertainty was there on account of delay in monsoon and there are concerns about food prices. He said first challenge is to quickly revert to higher GDP growth path of 9% and cross double digit growth. The second challenge is to harden economic growth to make development more inclusive. The third challenge relates to problems in government system.
The economy is likely to do better in the quarter to March than the three preceding quarters, Finance Secretary Ashok Chawla said on Friday. The economy grew a slower than expected 6% annually in the December quarter, data showed on Friday.
Asian stocks were mixed on Tuesday 2 March 2010 after a firm start triggered as U.S. consumer spending increased more than expected and global semiconductor sales gained. The key benchmark indices in China, Hong Kong and Japan fell by between 0.02% to 0.66%. But, the key benchmark indices in Indonesia, South Korea, Singapore and Taiwan rose by between 0.1% to 1%.
The pace of Chinese manufacturing eased last month, suggesting slower government spending and steps to curb credit growth could be taking some of the steam out of the world's third-largest economy. The Purchasing Managers' Index (PMI) derived from a survey conducted by the China Federation of Logistics and Purchasing for the National Bureau of Statistics (NBS) fell to 52.0 in February from 55.8 in January.
US markets, stocks kicked off March with gains on Monday, 1 March 2010 led by technology stocks after an encouraging report on chip sales and strong outlook from Sandisk. Some M&A activity too gave the broader market a boost. The Dow Jones Industrial Average gained 78.53 points, or 0.8%, to close at 10,403.79, led by Intel. The tech-heavy Nasdaq jumped 1.6%, while the S&P 500 added 1%.
In economic data, the ISM reported that the manufacturing sector continued to grow in February 2010, even though it fell to 56.5 from 58.4 in January, as the gauge remained over 50. On the consumer front, personal spending rose 0.5% in January, even though income gained only 0.1%. Spending on both durable and nondurable goods was strong.
In its second reading of fourth-quarter gross domestic product of US, the Commerce Department said the economy grew at a 5.9% annual rate, rather than the 5.7% pace it estimated last month.
Governments need to coordinate exit strategies but the pace at which they unwind stimulus measures depends on their individual circumstances, senior officials said on Saturday on the sidelines of a G20 deputy finance ministers' meeting.
Figures on Friday 26 February 2010 showed the British economy grew faster than previously estimated in the last three months of 2009, the quarter in which it emerged from the longest recession on record, but finance minister Alistair Darling reiterated his warning that support for the economy needed to remain in place.
Closer home, the key benchmark indices pared gains after a sharp surge in early afternoon trade triggered by the finance minister's budget which pushed for higher consumption on Friday, 26 February 2010. The BSE 30-share Sensex rose 175.35 points or 1.08% to 16,429.55 on that day.
As per provisional figures on NSE, foreign funds bought shares worth Rs 841.23 crore and domestic funds sold shares worth Rs 859.63 crore on Friday.
Bullion metals drop
Prices end marginally lower as dollar climbs up
Precious metal prices ended marginally lower on Monday, 01 March, 2010. Prices fell at the end as the dollar climbed up against the euro.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Monday, gold for April delivery ended at $1,118.3 an ounce, lower by $0.60 (0.6%) an ounce on the New York Mercantile Exchange. During intra day trading, it rose by 0.4%.
On Monday, March Comex silver futures ended lower by 5.2 cents (0.3%) at $16.469 an ounce.
In the currency market on Monday, the dollar strengthened against the euro. The dollar climbed up almost 1.3% against the euro. The dollar index, which gained more than 1% ultimately ended the day with a 0.6% gain.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.
Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level.
At the MCX, gold prices for April delivery closed higher by Rs 7 (0.04%) at Rs 16,796 per ten grams. Prices rose to a high of Rs 16,849 per 10 grams and fell to a low of Rs 16,640 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed Rs 69 (0.26%) lower at Rs 26,045/Kg. Prices opened at Rs 26,165/kg and fell to a low of Rs 25,970/Kg during the day's trading.
Crude pares gains
Strong dollar and mixed data pull crude lower
Crude prices ended lower on Monday, 01 March 2010. Prices fell at the end as the dollar climbed up against the euro and also due to mixed economic data.
On Monday, crude-oil futures for light sweet crude for April delivery closed at $78.7/barrel (lower by $0.96 or 1.2%). During intra day trading, crude rose to a high of $80.62.
In the currency market on Monday, the dollar strengthened against the euro. The dollar climbed up almost 1.3% against the euro. The dollar index, which gained more than 1% ultimately ended the day with a 0.6% gain.
Among the major economic data expected for the day, the Institute for Supply Management reported Monday that its index of manufacturing activity slipped a bit to 56.5 last month, but still reflected an expansion in manufacturing. Crucially, its employment index grew for the third consecutive month.
Also on Monday, natural gas for April delivery fell 13 cents, or 2.8%, to $4.679 per million British thermal units.
Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 48.8% since then. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for February delivery closed Rs 45 (1.22%) lower at Rs 3,624/barrel. Natural gas for March delivery closed lower by Rs 3.9 (1.8%) at Rs 217/mmbtu.
Daily News Roundup - March 2 2010
SAIL says hike in excise duty will be passed on to customers resulting in a Rs500-600 per ton price hike on long products. (BL)
Bhushan Steel plans to invest about Rs280bn to set up a value-added steel plant in Karnataka. (DNA)
Maruti Suzuki would raise prices between Rs3,000 to Rs13,000 across various models, with immediate effect. (DNA)
Cement companies across all regions have increased prices in the range of Rs10-12 per bag to offset the twin effects of hike in excise duty and rise in diesel rates. (ET)
RIL is on the verge of losing its bid for bankrupt petrochemical company Lyondell-Basell, as it baulks at rising valuation due to the recovering global economy. (ET)
Coal India will increase its spending by three times to Rs98bn in the next financial year, primarily to fund its expansion and acquisition programmes. (FE)
Hindustan Dorr-Oliver has acquired Sheffield-based DavyMarkham, a 180-year-old company involved in design, manufacture and assembly of large equipment used in mining, power, oil, gas and nuclear sectors. (BS)
Tata Steel rules out raising equity to meet covenants. (BS)
MphasiS Ltd is scouting for a company with revenues in the region of US$45-60mn and having a good presence in the cloud computing space, with a view to growing its Infrastructure and Technology Outsourcing (ITO) business. (BS)
SAIL to spend ~Rs123bn in the next financial year largely to fund its mega expansion programme. (FE)
Bhushan Steel would spend Rs280bn to build a 6 lakh tonnes steel plant in the Bellary region of Karnataka. (ET)
Nabard plans to provide Credit Plus services through the Farmers’ Clubs. (BS)
Tata Motors reported 58% yoy growth in total sales volume, including exports volume. (ET)
FPO of NMDC may be at a substantial discount to its market price, going by the numbers announced by finance minister in his Budget speech. (Mint)
Venezuelan government owned oil firm likely to buy stake in ONGC Mangalore Petrochemicals for setting up an aromatic unit in Mangalore SEZ. (FE)
SAIL will be spending Rs123bn in the next financial year, mainly to fund its expansion program. (FE)
Budget clarification on extension of service tax will include all activities in the entire continental shelf and exclusive economic zone will increase the cost of offshore exploration for ONGC and Reliance Industries. (BS)
ICICI Bank hikes long-term deposit rates by 25-50 bps. (ET)
The Tatas will have to either buy out the 26% stake in its life insurance JV or rope in another partner if Prudential UK buys out the Asian life insurance business of AIG. (BS)
United Bank of India fixed issue price of its IPO offer at Rs66 per share. (BS)
M&M plans to launch nine vehicles in various segments till March 2011; raises product prices by up to Rs18,000 following the increase in excise duty announced in the Budget. (BS)
Non-banking finance companies like IDFC, Aditya Birla Financial, Reliance Capital, Religare Enterprises and Indiabulls planning to queue at the RBI to seek banking licences. (BS)
Bharti Airtel may sell stake to cut Zain deal debt. (ET)
Shriram Transport Finance enters the second hand truck finance market through its new subsidiary Automall. (BS)
Maharashtra government decides to award the Worli-Haji Ali sea link project to a consortium led by Reliance Infrastructure. (ET)
Reliance ADAG scales up its stake in the Fame by 1.7% to nearly 14%. (ET)
Texas Pacific Group may take over the assets of troubled Vishal Retail and convert it into a cash-and-carry operations. (ET)
Fiscal deficit for 2010-11 pegged at 5.5% of GDP. (DNA)
Government raises excise duties by 2% to 10% on all non-oil products as part of withdrawal of the stimulus measures. (DNA)
Domestic oil companies increased ATF prices with the increase in price ranging from Rs1.3/litre in Delhi to Rs1.4/litre in Chennai. (BL)
Economy recorded a less than expected 6% growth in Q3 FY10, lower than the 7.9% GDP growth recorded in Q2 FY10. (BL)
The Government has decided that telecom companies offering 3G services will not be allowed to claim tax breaks under Section 80 IA of the Income Tax Act. (BL)
Minister of Road Transport and Highways has lowered the target for awarding national highway contracts to 7,000km by June from the earlier stated level of nearly 12,000km. (BL)
Finance Ministry hopes to garner about Rs260bn in 2010-11 from the budget move to go back to the pre-June 2008 duty structure position on the petroleum sector. (BL)
RBI is considering giving some additional banking licences to private sector players, including non-banking finance companies. (BL)
Vehicles prices set to rise across the automobile industry as the government announced a 2% hike in excise duties across all segments in Budget 2010-11. (BL)
Due to increase in customs and excise duties on petrol and diesel, consumers will now have to pay Rs2.71 per litre and Rs2.55 per litre more respectively. (BL)
Foreign exchange reserves fell by US$527mn to US$279bn for the week ended February 19. (BL)
Government has estimated the net borrowing for FY11 at Rs3.5tn or Rs534bn lower than the revised estimates of the current year. (BL)
Government proposes to introduce competitive bidding process for allocating coal blocks for captive mining. (BL)
The government is seeking a uniform low risk weight on banks’ exposure to the specialised infrastructure financing companies. (ET)
RBI has indicated that it will take longer than April to implement base rate scheme. (ET)
The Indian Banks’ Association had asked RBI to extend the deadline for base rate implementation by banks by three months to July. (ET)
Decent start after a Holi-day!
Risk varies inversely with knowledge
Investors have had a long weekend to put their knowledge at work after the budget. With the major event risk out of the way, a lot will again depend on how the global events play out.
Asian stocks have pared their gains after a positive start. US stocks climbed on Monday taking the Nasdaq and S&P 500 into positive zone for the year. AIG's $35 billion asset sale and a some mergers in the pharma space brought some cheer. A Greek bailout package is being closely watched and could have a bearing on the market sentiment.
The consumption story is here to stay. With the budget putting in more money in the hands of the consumers, a lot of consumption-related stocks will see renewed action.
The EXIM numbers and sales numbers from auto and cement firms will be among the data points tracked today. An increase in customs and excise duties on petrol and diesel will bring in some loud protests for sure.
RIL could see some action following reports that it is on the verge of losing its bid for Lyondell-Basell. Meanwhile, reports add that it may now focus on the possible acquisition of Canada’s Value Creation.
Thursday turned out to be another session of consolidation where the benchmark indices traded in a narrow range throughout the day. BSE Sensex was unable to bounce back despite an upbeat Economic Survey. Even a sharp rise in India’s core sector growth was unable to cheer sentiment on Dalal-Street.
Production at India's six key infrastructure industries rose by a strong 9.4% in January 2010 as against 2.2% in the same period last year, Commerce & Industry Ministry said in a statement today. Growth in India's infrastructure sector stood at 6.4% in December 2009 and was at 6% in Nov. 2009 and 3.8% in Oct. 2009.
In addition, with the Railway Budget turning out to be more populist one and international equity markets not that encouraging, traders and the investors continued to remain cautious ahead of the Union Budget 2010-11.
Finally, the BSE Sensex ended flat at 16,254 it hit an intra-day high of 16,329 and intra-day low of 16,167. While the NSE Nifty ended flat at 4,859.
Among the 30-components of Sensex, 16 ended in the negative terrain and 14 ended in the green. Hindustan Unilever, Tata Motors, JP Associates, NTPC and RCom were among the top losers. On the other hand, major gainers were L&T, Maruti, Hero Honda, Infosy and ACC.
Outside the frontline indices, the big losers in the broader market were Mphasis, Godrej Cons, Renuka Sugars and Jet Airways. On the other hand, gainers included GVK Power, Mundra Port, REC and Piramal Health.
Food price inflation yet again marginally fell to 17.58% in the week ended February 13, 2010 as against the same period last year. Primary Articles inflation fell to 15.84% in the week ended February 13, 2010 as against 16.23% in the same period last year. While, Fuel price inflation remained unchanged at 9.89% on a YoY basis.
Hathway Cable & Datacom, one of the largest Cable TV services company of India started trading at Rs250 per share as against its issue price of Rs240. However, the stock fell below its issue price and ended at Rs207, translating into a discount of 13.5%.
The company entered the capital market with 227,55,000 equity shares of Rs 10 each for cash at a price band of Rs240 to Rs265 through 100% book building process. The IPO just managed to get subscribed by 1.36 times on the final day of offer. Most of the bids came at the lower end of the price band.
The QIBs portion of the issue received subscription of 1.43 times with bids for 16714925 equity shares against the offer of 11655000 equity shares.
The Non Institutional Investors portion of the issue received bids for 11895750 equity shares against the offer of 2775000 equity shares resulting in a subscription of 4.28times. The Retail Individual Investors portion of the issue received subscription of 0.2754 times with bids for 2292300 equity shares against the offer of 8325000 equity shares.
ICICI Bank raised interest paid on deposits of select maturities by 25 to 50bps. The move came after HDFC Bank raised some deposit rate by 0.50% to 1.50% from February 19, 2010. The new rates have come into effect from today, Rahul Virkar, the spokesman was quoted as saying.
Shares of ICICI Bank advanced 1.2% to end at Rs851. The scrip opened at Rs841 it touched an intra-day high of Rs857 and a low of Rs832 and recorded volumes of over 4.3mn shares on NSE.
Shares of Kotak Mahindra Bank surged 3.2% to end at Rs729 after the National Stock Exchange in its circular announced that the bank would replace Grasim Industries in the S&P CNX Nifty Index.
On the other hand, shares of Grasim ended flat at Rs2660. The scrip opened at Rs2655 it touched an intra-day high of Rs2705 and a low of Rs2601 and recorded volumes of over 0.17mn shares on NSE.
Cadila Healthcare announced that the board of directors recommended to issue Bonus Equity Shares in the ratio of 1:2 of Rs5/- each held by the shareholders of the company on the record date to be fixed by the board of directors / committee of the board after the approval of the shareholders at a general meeting.
The stock gained 1.5% to end at Rs752. The scrip opened at Rs746 it touched an intra-day high of Rs765 and a low of Rs718 and recorded volumes of over 0.2mn shares on NSE.
Aurobindo Pharma received tentative approval to manufacture and market Nevirapine Tablets for Oral Suspension 50mg (NDA) from the US Food & Drug Administration (USFDA).
The stock ended slightly lower by 0.7% to end at Rs923. The stock opened at Rs917 hitting an intra-day high of Rs933 and a low of Rs917. It recorded volumes of over 0.15mn shares on NSE.
Shares of Gammon India erased early gains and ended lower by 1.6% at Rs212. The company announced that it has won an order worth Rs1.37bn from the International Society for Krishna Consciousness. The scrip opened at Rs223 it touched an intra-day high of Rs226 and a low of Rs210 and recorded volumes of over 0.2mn shares on NSE.
Promoters of Texmaco are reportedly planning to restructure its group companies i.e the engineering firm Texmaco and Texmaco Machines. It is looking to demerge Texmaco’s heavy engineering and steel foundry divisions and transfer the same to its wholly-owned subsidiary Texmaco Machines.
As per the scheme approved by an independent committee of directors, Texmaco’s heavy engineering & steel foundry business, along with its assets and liabilities, will get transferred to Texmaco Machines, an existing company.
The stock slipped 1.7% to end at Rs140, it opened at Rs141 it touched an intra-day high of Rs143 and a low of Rs134 and recorded volumes of over 2.3mn shares on NSE.
Amtek Auto
Investors with a short-term trading perspective can buy Amtek Auto. This stock was one of the strong movers in the Budget session and closed about 8 per cent higher accompanied by strong volumes. The stock has been trudging sideways in a sleepy manner all through February and the breakout recorded on Friday has resulted in a strong close above both the 21-day and the 50-day moving averages. The stock also moved above its downtrend-line on Friday.
The intermediate-term trend in the stock is up since the November trough of Rs 43.5. That the January correction halted at 38.2 per cent retracement of this up-move denotes a strong bullish undercurrent. The stock also reversed higher from its long-term 200-day moving average last Thursday. We expect the spurt that began on the Budget day to continue to take this stock higher to Rs 192 or Rs 201. Investors can buy this stock for the short-term with stop at Rs 177.
via BL
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